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2010-08-17 - Executive-Administrative-Organizational Committee Meeting Agenda Packet
Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT EXEC-ADMIN-ORGANIZATIONAL COMMITTEE MEETING Tuesday, August 17, 2010, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director William R. Mills, Chair Ken Vecchiarelli, General Manager Director Michael J. Beverage Pat Grady, Assistant General Manager 1. PUBLIC COMMENTS Any individual wishing to address the committee is requested to identify themselves and state the matter on which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 2. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 2.1. Approval of MWDOC Grant Participation Agreement Recommendation: That the Committee recommend the Board of Directors approve the MWDOC Tiered Rates Grant Participation Agreement. 2.2. Proclamation Recognizing the Centennial Anniversary of the Association of California Water Agencies Recommendation: That the committee support the resolution recognizing ACWA on their 100 year anniversary and recommend approval by the full Board of Directors. 2.3. Posting of Job Classifications and Salary Ranges Recommendation: That the Executive-Administrative-Organizational Committee consider Staffs recommendation to post employee job classifications, salary ranges and labor agreements. 2.4. Reschedule Board Meetings Recommendation: That the Committee recommend the Board of Directors reschedule the regularly scheduled Board meetings as follows: . Reschedule Thursday, November 11, 2010 to Wednesday, November 10, 2010 at 8:30 a.m. . Reschedule Thursday, November 25, 2010 to Wednesday, November 24, 2010 at 8:30 a.m. . Reschedule Thursday, December 23, 2010 to Wednesday, December 22, 2010 at 8:30 a.m. 2.5. Schedule Financial Planning Workshop Meeting for Mid-October Recommendation: That the Committee support scheduling a Financial Planning Workshop for Thursday, October 21, or Friday, October 22, 2010. 3. DISCUSSION ITEMS This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda may also include items for information only. 3.1. Director's and General Manager's Quarterly Fees and Expenses (Apr-June) and Fiscal Year to Date Expenses for FY 2009/10 Recommendation: For information and discussion only. 3.2. General Counsel's Monthly Summary Billing Report July 2010 Recommendation: For information and discussion only. 3.3. Future Agenda Items and Staff Tasks 4. ADJOURNMENT 4.1. The next regular meeting of the Executive-Administrative-Organizational Committee will be held September 21, 2010 at 4:00 p.m. Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Committee less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 2.1 AGENDA REPORT Meeting Date: August 17, 2010 Budgeted: N/A To: Executive-Administrative- Organizational Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Pat Grady, Assistant General Dept: Finance Manager Reviewed by Legal: No Prepared By: Stephen Parker, Finance CEQA Compliance: N/A Director Subject: Approval of MWDOC Grant Participation Agreement SUMMARY: For the Committee's review and comment is the MWDOC Tiered Rates Grant Participation Agreement. MWDOC staff drafted the agreement, and they have worked with many of the Orange County retail agencies in completing this agreement. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors approve the MWDOC Tiered Rates Grant Participation Agreement. DISCUSSION: The Grant Participation Agreement with MWDOC is the result of a Department of Water Resources (DWR) grant awarded to MWDOC to promote water conservation rate structures. This grant assists a number of MWDOC's retail agencies in examining various aspects of water budget rate structures. The rate study is separated into three phases with the retail agencies having the option of participating in each phase. Yorba Linda Water District is participating in Phase 1 (Water Rate Development) and Phase 3 (Billing and Accounting System Needs), but not Phase 2 (Use of Parcel Data for Water Budget Development). Staff has reviewed the language as it pertains to the District's ability to receive payment for their portion of the grant. Under this agreement, Yorba Linda Water District is eligible for up to $68,000 in grant funds as long as they have a local match of $166,000, for a total expenditure of $234,000. The District understands that expenditures eligible for the MWDOC Grant include hiring a consultant for the Water Rate Study currently in progress (including RFP preparation and consultant selection), costs related to implementation of the utility billing software required to process a new rate structure and in-house labor related to these efforts. As of June 30, 2010, the District has incurred almost $195,000 in qualifying expenses. Therefore, staff believes that by the time the water rate study is complete, the District will receive the full $68,000 in grant funds available under the agreement. ATTACHMENTS: Name: Descrip'kion.: TVr c,: MWDOC Tiered Rates Grant Participation Agreement MWDOC Grant Participation Agreement Backup Material ( 7-1-10).doc Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Agreement for Participation in Water Budget Based Tiered Rate Grant Program THIS AGREEMENT ("Agreement"), dated this day of , 20107 is made between the Municipal Water District of Orange County (MWDOC), the City of Buena Park (Buena Park), the City of Fountain Valley (Fountain Valley), the City of Huntington Beach (Huntington Beach), the City of San Juan Capistrano (San Juan Capistrano), East Orange County Water District (EOCWD), the El Toro Water District (ETWD), the Mesa Consolidated Water District (Mesa Consolidated WD), the Moulton Niguel Water District (MNWD), the Yorba Linda Water District (YLWD), the Santa Margarita Water District (SMWD), the South Coast Water District (SCWD), the City of Newport Beach (Newport Beach), and the City of Garden Grove (Garden Grove), referred to individually as "Party" and collectively as "Parties" herein, for the purpose of ensuring participation and local match funding under a grant program for developing and implementing water budget based tiered rate structures. Recitals WHEREAS, the State of California is experiencing a water supply crisis due to a variety of factors, including naturally occurring drought conditions and judicial orders for decreased water deliveries to Southern California from the State Water Project; and WHEREAS, based on the current water supply, Metropolitan Water District of Southern California (Metropolitan) has imposed mandatory water rationing in 2009 and 2010; and WHEREAS, water conservation in the form of budget based tiered rates is a proven method of water conservation and an important additional conservation measure that should be considered by all water providers; and WHEREAS, the investment in technology and manpower required to develop and implement a water budget based tiered rate structure is significant, and pooling the resources of numerous cities and agencies will enhance efficiency and allow economies of scale; and WHEREAS, MWDOC and a number of its retail agency customers submitted a Grant Proposal to the California Department of Water Resources proposing to examine the costs, issues and water savings associated with implementation of Budget Based Tiered Rates for Water Management and Droughts (Grant Study); and 1 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 WHEREAS, the California Department of Water Resources approved the Grant Study proposal and awarded $685,000 in grant funds (DWR Grant) to MWDOC to cover a substantial portion of an overall program with an estimated total cost of $2,390,695; and WHEREAS, Buena Park, Fountain Valley, Huntington Beach, San Juan Capistrano, EOCWD, ETWD, Mesa Consolidated WD, MNWD, YLWD, SMWD, SCWD, Newport Beach and Garden Grove (Participants) are MWDOC retail customers who have agreed to participate in the Grant Study; and WHEREAS, MWDOC has already entered into an agreement with DWR (Attachment D) that establishes the rights and obligations of MWDOC and any participating agencies under the DWR Grant, including reports and local match requirements; and WHEREAS, MWDOC and the Parties further require the Agreement set forth herein in order to ensure compliance with the DWR Grant, establish a scope of work for the Grant Study, set a schedule, outline the rights and obligations of the Parties, and establish cost allocation principles for how the Grant funding will be shared; and WHEREAS, certain elements of the Grant Study require the assistance of outside consultants, which shall be retained by MWDOC or the individual agencies, as provided herein. NOW THEREFORE, the Parties agree as follows: 1. PROJECT OVERVIEW The purpose of the Grant Study is to assist a number of MWDOC's retail water agencies in examining various aspects of water budget rate structures, including the feasibility, approach and implementation of water budget rate structures. The Grant Study will be conducted in three phases, although not every Participant will participate in every phase. The phases are: Phase 1: Water Rate Development Phase 2: Use of Parcel Data for Water Budget Development Phase 3: Billing and Accounting System Needs (hardware and software) As Grantee under the DWR Grant, MWDOC will work with the Participants in a group setting from time to time to discuss elements of all three phases. In addition, separate meetings between MWDOC and the individual Participants will focus in greater detail on the policy and technical issues associated with water budgets. Individual Participant meetings will be held with the appropriate policy-makers and senior staff to receive input on the type of water budget best suited for each Participant. In addition, a 2 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 billing system compatibility analysis will be conducted and different implementation options will be provided for each Participant in that phase of the study. The Grant Study will also outline the financial and political aspects of water budgets and will position the retail agencies to implement water budgets for equitable allocation of water under a continuing rationing scenario. The main goal of the Grant Study is to help urban communities cope with water shortages and drought conditions, but the water management benefits of a water budget based rate structure will continue to accrue each and every year. Equitable allocation of indoor and outdoor water needs by account will allow the Participants to determine quickly and accurately which accounts are over their allotment. Based on this information, a water purveyor can focus its resources on saving water from these accounts based on price and/or other complementary device-based conservation programs. In this manner, the flexibility of water budgets makes them the most equitable mechanism for water conservation. Agencies with sewer rates based on water consumption will also benefit by the reduction in treatment costs. All legal issues, including compliance with the California Environmental Quality Act (CEQA), will be handled by the individual Participants through their own legal counsel. Legal costs so incurred can be used as local matching funds. MWDOC has taken the position that for purposes of the Grant Study, no action by MWDOC is required for CEQA compliance. An independent CEQA determination should be made by each Participant pursuant to advice from its legal counsel. 2. CONSULTING CONTRACTS (PHASES 1 AND 3) To secure the required expertise and assistance in rate making, rate modeling and implementation of budget based tiered rates, the Parties and MWDOC conducted a selection and due diligence process to identify consultants to be hired by MWDOC. This process included (1) collecting information about qualifications of potential consultants from Participants, (2) working with Participants to identify and complete due diligence to establish qualifications for potential consultants, (3) MWDOC soliciting Statements of Qualifications from a number of consultants and selecting the consultants to be hired directly by MWDOC, and (4) Participants reviewing and hiring consultants based on their own administrative procedures. At all times MWDOC advised the Participants that they were free to utilize consultants selected by Participants or others with whom Participants have already worked on related activities. This multi-pronged process to establish and evaluate qualifications resulted in a consensus for MWDOC to hire Raftelis Financial Consultants for the Phase 1 Water Rate Development and Red Oak Consulting for Phase 3 Billing and Accounting System Needs. This process included input from Participants who were already working with Raftelis and Red Oak on related activities. Pursuant to these efforts, the Parties agree and hereby direct that MWDOC shall enter into agreements with both Raftelis Financial Consultants and Red Oak Consulting, a division of Malcolm Pirnie, to provide consulting services in support of the Grant 3 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Study. Shown below is a table indicating which agencies will be hiring their own consultants and which ones will be utilizing the MWDOC retained consultants. Use of Consultants for DWR Budget Based Tiered Water Rates Phase 2 Phase 3 Digital Phase 1 Rate IT Hardware Participant Mapping Structure Software 1. Garden Grove Yes 2. Buena Park Own* RedOak hired by MWDOC 3. Yorba Linda WD Own Own 4. South Coast WD Yes Own Own 5. El Toro WD Yes Own Own 6. Huntington Beach Own RedOak hired by MWDOC 7. Moulton Niguel Yes Own Own 8. SMWD Yes 9. Newport Beach Raftelis hired RedOak hired by MWDOC by MWDOC 10. San Juan Capistrano Yes 11. East Orange County WD Yes Own Own 12. Mesa Consolidated WD Yes 13. Fountain Valley Own Raftelis for RedOak for Management 14. MWDOC of Grant Management hired by of Grant hired MWDOC by MWDOC * "Own" indicates the Participant will retain its own consultant The Grant Study approved by DWR requires completion of ten (10) tasks, as described more fully in Section 4 below. Each task requires certain activities by MWDOC as the Grantee and certain activities by one or more of the Participants, depending on which of them are participating in a particular task. For completion of the Study Tasks, MWDOC's responsibilities include: 4 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 a. Management and administration of consulting service contracts with Red Oak Consulting (Attachment B) and Raftelis Financial Consultants (Attachment C). b. Management, facilitation and administration of the Grant Study process with the Participants, including the tracking, monitoring and reporting of in-kind contributions. c. Invoicing the Participants and paying the consultants hired by MWDOC. d. Administration of the DWR Grant agreement (Attachment D), including tracking local contributions toward the local match amount and working with the Participants to ensure to the fullest extent possible that all DWR funds are utilized. For completion of the Study Tasks, the Participants' responsibilities include: a. Participate and cooperate with MWDOC, other Grant Study Participants and all consultants hired for the Grant Study, including by responding to information requests on a timely basis. b. Attendance at workshop meetings. c. Assigning staff to attend individual meetings with Grant Study consultants. d. Keeping accurate and complete records of in-kind contributions to submit for credit toward the Participant's local match amount, which can include direct payments for services related to any aspect of the Grant Study, the value of staff time expended in furtherance of the Grant Study, legal fees and costs incurred in connection with participation in the Grant Study, and other fees and costs for consultants hired in connection with participation in the Grant Study, if any. e. Taking all reasonable steps available to maximize all local match opportunities so that the full amount of the grant from DWR can be utilized. The Parties are collectively responsible for providing an overall local contribution of 71 % of the full cost of the Grant Study. The Parties hereby acknowledge that if the local contribution falls below 71 % of the full cost of the Grant Study, DWR will reduce its contribution so as to maintain a 29% share and funds otherwise available under the DWR Grant will not be available for the Grant Study. MWDOC will work with the Parties, individually and collectively, to ensure that all DWR funds are utilized to the maximum extent possible. 5 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 3. DIGITAL MAP PRODUCTS (DMP) CONTRACT (PHASE 2) To develop estimates of the irrigable area for all parcels within the service area of the Participants, the Parties conducted due diligence and negotiations with Digital Map Products ("DMP") on a sole source basis because DMP is the only provider of the services required by the Grant Study known to the Parties to be operating in Orange County, California. Pursuant to these efforts, the Parties agree and hereby direct that MWDOC shall enter into an agreement with Digital Map Products to provide consulting services in support of the Grant Study (Attachment A). The contract with Digital Map Products was initiated in October 2009 under separate action by MWDOC and certain other interested Participants: 1. Garden Grove 2. South Coast WD 3. El Toro WD 4. Moulton Niguel 5. SMWD 6. San Juan Capistrano 7. East Orange County WD 8. Mesa Consolidated WD The eight Participants listed above requested that at such time as the DWR Grant is restarted, the Phase 2 work by Digital Map Products work be included under the Grant Agreement for cost-sharing. Because the mapping work included the entire county, the Participants agreed that in the future additional agencies could be allowed access to the mapping work for their service area at any time on the following terms. Each new agency desiring to participate in the mapping effort in the future would be required to pay an amount equal to the cost of the DMP contract, divided by the total number of entities ultimately participating in the mapping work. In the event new agencies are added to the mapping work, already participating entities will be credited or refunded a proportion of their previous commitment in order to make costs for all agencies participating in the mapping equal. Grant funds will not be made available to new agencies being brought into the mapping work. At this time, the cost of the Digital Map Products contract is estimated at $98,400 in total. The main deliverable from DMP will be a web-delivered database for each Participant. The format of the database will be Excel. The database will include the following information: ■ Assessor's Parcel Number ■ Detailed Physical Address ■ Type/Classification of Parcel ■ Retail Water Agency Service Area 6 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 ■ Area measurement employing two methodologies ■ Assessor's Database Method o Gross size of parcel o Irrigated Area Method 1 = Gross size less (2 times the building) size o Irrigated Area Method 2 = To Be Developed using existing data ■ Remote Sensing Classification Information Method o Parcel size o Impervious Area o Irrigated Turf Area o Irrigated Shrubs & Tree Area o Other Vegetated Area o Pools (yes/no, area) o Non-irrigated Vegetated o Total irrigated area of parcel ■ Tabulations summed per Participant for the two area measurement methodologies A second deliverable from DMP will be for each of the Participants to have access to the Digital Map Products City GIS Product for a one-year period. Digital Maps will also include a layer of the infrared imagery into the delivery system. This will allow time for the Participant to utilize the delivered database and make necessary decisions regarding implementation of budget based rates. Obtaining a continuation of these services or additional services from DMP thereafter must be by separate contract and at each Participant's sole cost. The cost for maintaining the City GIS service only for the delivered database for each additional year is $1,000 per Participant. For the DMP Contract, MWDOC's responsibilities include: ■ Management and administration of the contract with DMP. ■ MWDOC will also work to ensure that the efforts completed herein will be eligible for inclusion with the Budget Based Tiered Water Rate Grant from DWR. ■ Management and facilitation of the work and communication between the Participants and DMP. ■ Invoicing the Participants for the Study Deposit Amount, paying DMP, and providing an accounting of the Study Deposit Amounts to the Participants. The Participants' responsibilities include: ■ Provision of information as requested on a timely basis and participation and cooperation with MWDOC and DMP. ■ Attendance at meetings. ■ Payment for their share of the Digital Maps Product contract. ■ Integration of the final database into the Participants' respective billing and accounting systems. This only applies to Participant's that proceed into the implementation phase and change their water rate structure. 7 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 4. TEN TASKS OF THE GRANT STUDY The ten tasks required by the Grant Study are standard tasks based on the American Water Works Association Rates and Charges Manual, which is the industry standard for water rate setting. Task 1: General Administration and Report Preparation for All Agencies. Task 1 includes general administration and coordination among the Parties and consultants; quarterly progress report preparation and invoicing are included, as is a joint agency kickoff meeting to be held at the commencement of the Grant Study. MWDOC staff will be facilitating and managing the Grant Study on behalf of all of the Participants. Task 2: Identify Cost and Agency Revenue Requirements Task 2 involves identification of annual cash requirements to pay for the associated costs of maintaining water agency operations, while still meeting debt coverage ratio and reserve requirements. Each Participant in the Water Rate Development process will complete this task on their own. Task 3: Cost of Service Analysis MWDOC will conduct a workshop with the Participants in the Water Rate Development Process to provide information and background on how to conduct a cost of service analysis. Individual Participants will develop details on customer classes and fixed versus variable costs. Task 4: Develop Rate Structure and Water Budgets Another workshop will be held with the Participants in the Water Rate Development Process to discuss Rate Structures and Water Budgets, including the following three topics or subtasks: a. Policy Factors for Indoor / Outdoor Allocation - Develop policy options associated with indoor and outdoor water allocations. These policy options will serve as the foundation for developing water budgets. b. Development of Water Budget Database - Based on the policy option developed in the above task, each retail agency will develop the appropriate allocation factor for each account. MWDOC will utilize DMP to develop estimates of irrigable area for each parcel. These estimates will be developed based on calculations approved by the Participants, parcel data from the Assessor's Office and infrared map overlays that will identify estimated irrigation areas for each parcel. This information will be incorporated into a water budget database that will allow formulation of a monthly water budget for each parcel. In lieu of the DMP data, Participants can use data developed from other sources. 8 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 c. Model Development and Testing - Utilizing the water budget database as one of the model drivers, each agency will develop a water budget model to populate with data for their agency. The water budget models will provide Participants with an ability to conduct "what if" scenarios. The models will perform: 1) fixed/variable rate adjustment, 2) water budget allocation, 3) revenue analysis, and 4) typical monthly bills comparisons. Task 5: Legal Input - Proposition 218 Compliance Each Participant shall have its own attorney provide input and advice on water budget based rates and compliance with provisions of Proposition 218. The indemnification of MWDOC and the State set forth below in this Agreement expressly includes, without limitation, any administrative or legal action related to Proposition 218. Task 6: Billing and Accounting System Needs and Options To support the implementation of the water budget based rate structure, the Phase 3 work will include an assessment of current customer service and billing practices and a review of the information systems used for Customer Information and Billing purposes. The ability of the current system will be compared with new requirements for handling budget based tiered rates and a gap analysis report will be prepared. This report will make recommendations for either a change in procedures or a change in systems and will provide suggested tasks, a schedule and an estimate of costs. Implementation of any billing or information system changes will be the responsibility of each Participant. Task 7: Outreach MWDOC and the Participants will develop generalized information templates for use by Participant's moving into implementation. Each individual Participant will then develop specific outreach materials and a tailored approach for its own use. The main goal of this task is to educate the public on the benefits associated with water budgets and how they function. 9 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Task 8: Implementation of Budget Based Tiered Rates Up to four Participants are expected to implement water budget based rate structures as a final step in the Grant Study. To support these Participants, MWDOC and its consultants hired as provided herein will be available to attend Board of Directors or City Council meetings and will develop presentation templates outlining options for generalized customer support. Individual Participants are responsible for all implementation phases and customer support within their service areas. Task 9: Final Report MWDOC, with the assistance of its consultants and each Participant, will develop individual reports that summarize the activities, findings and conclusions for each Participant. These reports will discuss the individual budget allocation used and the expected savings to be achieved. An overall report summarizing the results will be prepared for submittal to DWR and will be available to the Participants. Task 10: Monitoring and Evaluation After the completion and submittal of the final report, MWDOC and each Participant will be responsible for conducting annual monitoring and evaluation reports to determine actual savings from this project. MWDOC will summarize the analysis for DWR. 5. SCHEDULE The general schedule for the Grant Study is outlined below. Based on the State freezing and restarting the grant, DWR will allow MWDOC and the Participants to go back to October 14, 2008 to capture matching costs expended after that date. The Digital Mapping effort began in October 2009. The DWR Contract, including the one- year extension, goes until May 2012. Following is the estimated task schedule, assuming a start month of June 2010: 10 Budget Based Tiered Rate Grant Schedule Work Phase Item Timing Code* IT 1. Workshop on IT, Billing, Software March 15, 2010 DM 2. Delivery of 2009 Digital Mapping Data March 15, 2010 DM 3. Training on LandVision by Digital Maps March - April 2010 WR 4. Workshop on Water Rate Structures May 2010 (estimated) IT 5. Workshop with Potential Software Vendors (may be May/June combined with other activities) (estimated) 6. Finalize Agreements with Agencies & Consultants (Notice June, 2010 to Proceed) (estimated) PR 7. First Progress Report to DWR July 2010 IT 8. Complete Initial Assessment on IT, Billing, Software September 2010 PR 9. Second Progress Report to DWR October 2010 IT 10. Initiate Detailed IT, Billing, Software -where required November 2010 WR 11. Complete Primary Work on Water Rate Structures January 2011 PR 12. Third Progress Report to DWR January 2011 PR 13. Fourth Progress Report to DWR April 2011 IT 14. Complete detailed IT, Billing, Software - where required July 2011 WR 15. Agencies moving to implementation - complete and January 2012 implement all work on Rate Structures PR 16. Fifth Progress Report to DWR July 2011 17. Complete all work with Agencies on all Phases January 2012 PR 18. Sixth Progress Report to DWR October 2011 PR 19. Final Progress Report to DWR January 2012 20. Begin Five Year Monitoring Program January 2012 21. DWR Agreement End Date May 2012 * Work Phase Code: IT = IT, Billing, Software activities DM = Digital Mapping activities WR = Water Rate Structure activities PR = Progress reporting activities 11 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 6. DELIVERABLES MWDOC will submit the quarterly reports to DWR documenting progress, task completion, and project success, the "Draft Final Report" due at Agreement end date, the "Final Report" due approximately one month following the Agreement end date, and "Annual Updates on Benefits & Costs" for 5 consecutive years following completion of the Grant Study. The projected benefits will be validated through data analysis. In addition to the deliverables required by DWR, MWDOC will also submit to DWR the "Rate Structure Recommendations Reports" and "Billing and Accounting System Needs and Options Reports" (one each per participating agency). 7. PHASES OF PROJECT PARTICIPATION The Participants will participate in the three Phases of the Grant Study as they choose and will receive a share of the grant funds based on their participation in each Phase as outlined in Attachment E. 8. GRANT SHARING Attachment E provides the basis for sharing in the grant funds from DWR. The conditions for receipt of Grant Funds by the Participants includes: o Must provide 71 % local funds or in-kind services to receive up to 29% grant funds, up to max in Attachment E. o Grant funds shown in Attachment E cannot be exceeded unless other Participants do not use all of the grant funds they were allocated. o Participants may utilize excess matching funds from other Participants toward their own local match, if the funds are available for that purpose. 9. OUTREACH, COMMUNITY INVOLVEMENT, AND ACCEPTANCE Outreach and community involvement activities (see Task 7) are an important component of the Grant Study, especially for any Participant proceeding into full implementation of budget based tiered rates. Outreach will begin when needed by an agency and extend through adoption and implementation of the rate structure. The Parties and their consultants shall include appropriate acknowledgement of credit to the State of California, Department of Water Resources and to all cost-sharing partners for their support when promoting the Grant Study or using any data and/or information developed under the Agreement. 12 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 10. BUDGET The total cost for the Grant Study is $2,390,695. The total DWR Grant amount awarded is $685,000, subject to Parties' local matching share of $1,705,695, or 71 % of the total amount. 11.COST SHARING Attachment E provides the basis for sharing in the grant funds from DWR. MWDOC will monitor and track the level of expenditures for each Participant. The goal is to complete the work with the highest quality and lowest cost possible and with a percentage local match of 71 % or greater. 12.INVOICING Amounts due for the DMP contract will be invoiced as an up-front deposit. For other consultants hired by MWDOC, invoices shall be sent to the agencies on a quarterly basis concurrently with MWDOC's quarterly invoices to the State. Payments for consultants hired directly by the Participants are the responsibility of the Participants. Reports on payments made directly by each Participant for costs incurred and for staffing and other internal costs shall be submitted to MWDOC on a quarterly basis. 13. INDEMNIFICATION AND HOLD HARMLESS a. General: Each Party agrees to indemnify, defend at its own expense, including attorneys' fees, and hold each other Party harmless from and against all claims, costs, penalties, causes of action, demands, losses and liability of any nature whatsoever, including but not limited to liability for bodily injury, sickness, disease or death, property damage (including loss of use) or violation of law, caused by or arising out of or related to any negligent act, error or omission, or willful misconduct of that indemnifying Party, its officers or employees, or any other agent acting pursuant to its control in the performance of this Agreement. b. As to MWDOC: The Participants, and each of them, agree to indemnify, defend at their own expense, including attorneys' fees, and hold MWDOC harmless from and against all claims, costs, penalties, causes of action, demands, losses and liability of any nature whatsoever related to an administrative or legal challenge to any Party's action, or inaction, with respect to a water budget based rate structure. 13 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 c. As to State: MWDOC and each Participant agrees to indemnify the State and its officers, agents, and employees against and to hold the same free and harmless from any and all claims, demands, damages, losses, costs, expenses, or liability due or incident to, either in whole or in part, and whether directly or indirectly, arising out of the Grant Study. 14. INSPECTIONS BY STATE The State of California, acting by and through the Department of Water Resources, shall have the right to inspect the work being performed by the Participants at any and all reasonable times during the term of the Agreement. This right was established as to MWDOC in the DWR Grant agreement, and by express requirement it must be extended by MWDOC to this Agreement and all Participants. 15. WORKERS' COMPENSATION CLAUSE Each Participant affirms that it is aware of the provisions of Section 3700 of the California Labor Code, which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and each Participant affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision. 16.AMERICANS WITH DISABILITIES ACT By signing this Agreement, each Participant affirms that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. 17. DRUG-FREE WORKPLACE CERTIFICATION OF COMPLIANCE By signing this Agreement, each Participant certifies that it has a drug-free workplace program that meets the requirements of Government Code 8350 et seq. with respect to employees who may work directly in the expenditure of grant funds. ) MWDOC's Drug and Alcohol Free Workplace Program is attached as Attachment F, and MWDOC shall implement its program as required in connection with administration of the DWR Grant. 14 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 18. NON DISCRIMNATION CLAUSE During the performance of this Agreement, the Participants shall not deny the Agreement's benefits to any person on the basis of religion, color, ethnic group identification, sex, age, physical or mental disability, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, mental disability, medical condition, marital status, age, or sex. The Participants shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. The Participants shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Government Code, Sections 11135-11139.5) and the regulations or standards adopted by DWR to implement such article. The Participants shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. The Participants shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under the Agreement. The Participants' signatures on this Agreement shall constitute a certification that each signing Participant has, unless exempted, complied with the nondiscrimination program requirements of Government Code, Section 12990, and Title 2, California Code of Regulations, Section 8103. 19. TERM Unless terminated earlier as provided in this section, the term of this Agreement shall run concurrently with the term of the agreement between MWDOC and DWR, which runs until May 15, 2012. Alternatively, this Agreement runs until completion and payment of all costs of all Phases of the Project or until termination of the DWR Contract, whichever occurs earlier, unless the Agreement is terminated earlier by a majority of the Parties pursuant to Section 26 below. This Agreement may be modified by written agreement of the Parties, including modification to extend the term to be made consistent with any extensions provided by DWR for its contract. Pursuant to the DWR Grant agreement, the Project is considered to be completed or terminated for purposes of the DWR Grant only when so determined by DWR. 15 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 20. NOTICE Any notice, invoice, payment made pursuant to this Agreement shall be sent to the Parties at their respective addresses shown below. If to City of Buena City of Buena Park Park: 6650 Beach Blvd. Buena Park, CA 90622 Attn: Rick Warsinski, City Manager If to City of Garden City of Garden Grove Grove: P.O. Box 3070 Garden Grove, CA 92842 ATTN: Matthew Fertal, City Manager If to City of Huntington City of Huntington Beach Beach: 2000 Main Street Huntington Beach, CA 92648 ATTN: Fred Wilson, City Administrator If to City of Newport City of Newport Beach Beach P.O. Box 1768 Newport Beach, CA 92663 ATTN: Dave Kiff, City Manager If to East Orange East Orange County Water District County: 185 N. McPherson Rd. Orange, CA 92869 ATTN: Lisa Ohlund, General Manager If to Fountain Valley: City of Fountain Valley 10200 Slater Ave Fountain Valley, CA 92708 ATTN: Ray Kromer, City Manager If to San Juan City of San Juan Capistrano Capistrano: 32400 Paseo Adelanto San Juan Capistrano, CA 92675 ATTN: Joe Tait, City Manager If to Mesa Mesa Consolidated Water District Consolidated WD: 1965 Placentia Avenue Costa Mesa, CA 92627-3420 ATTN: Paul Shoenberger, General Manager 16 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 If to El Toro Water El Toro Water District District: P.O. Box 4000 Laguna Hills, CA 92654 Attn: Robert Hill, General Manager If to MNWD: Moulton Niguel Water District 27500 La Paz Road P.O. Box 30203 Laguna Niguel, CA 92607-0203 ATTN: Robert Gumerman If to MWDOC: Municipal Water District of Orange County 18700 Ward St. P.O. Box 20895 Fountain Valley, CA 92728 ATTN: Kevin P. Hunt If to Santa Margarita Santa Margarita Water District Water District: P.O. Box 7005 Mission Viejo, CA 92690 ATTN: John J. Schatz, General Manager and General Counsel If to South Coast South Coast Water District Water District: 31592 West Street Laguna Beach, CA 92651 ATTN: Michael Dunbar If to Yorba Linda Yorba Linda Water District Water District: 1717 E. Miraloma Placentia, CA 92870 ATTN: Ken Vecchiarelli, General Manager Parties may change their address for this purpose by giving written notice to the other Parties as provided herein. 21.TIMELINESS Time is of the essence in this Agreement. 22.AMENDMENTS The Agreement may be amended at any time by mutual agreement of all Parties set forth in a written instrument and executed by all Parties. 17 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 21ASSIGNMENT No Party may assign or otherwise assign or transfer any rights, interests or obligations under this Agreement without the written consent of all Parties. Once an assignment or transfer occurs with such consent, this Agreement and all of its provisions shall apply to and bind the successors and assigns of the Parties. 24.SEVERABILITY The partial or total invalidity of one or more provisions of this Agreement will not invalidate the remaining provisions. 25.GOVERNING LAW This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. Venue for any action filed by any Party or Parties related to this Agreement shall be Orange County, California. 26. TERMINATION OF AGREEMENT This Agreement may be terminated by a majority of Parties by action of their respective governing boards or councils. Upon termination, the Parties shall remain responsible for their share of costs up to the time of termination, as well as reasonable close-out costs, if any. 27. COUNTERPARTS This Agreement and any amendment hereto may be executed in two or more counterparts, and by each Party on a separate counterpart, each of which, when executed and delivered, shall be an original and all of which together shall constitute one instrument, with the same force and effect as though all signatures appeared on a single document. 28. SIGNATURES The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective agencies. IN WITNESS WHEREOF, the PARTIES have executed this Agreement as of the date below. 18 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Date Date By By Michael P. Dunbar Kevin P. Hunt General Manager General Manager SCWD MWDOC Approved as to Form: Approved as to Form: Date Date By: Betty Burnett By: General Counsel Daniel J. Payne General Counsel Date Date By By Robert Gumerman Paul Schoenberger General Manager General Manager MNWD Approved as to Form: Approved as to Form: Date Date By: By: Patricia B. Giannone Robert Anslow General Counsel General Counsel 19 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Date Date By By City of Buena Park City of Garden Grove Rick Warsinski Matthew Fertal City Manager City Manager Approved as to Form: Approved as to Form: Date Date By: By: Steven L. Dorsey Thomas F. Nixon City Attorney City Attorney Date Date By By City of Huntington Beach City of San Juan Capistrano Fred Wilson Joe Tait City Administrator City Manager Approved as to Form: Approved as to Form: Date Date By: Jennifer McGrath By: City Attorney Omar Sandoval City Attorney 20 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Date Date By By El Toro Water District East Orange County Water District Robert Hill Lisa Ohlund General Manager General Manager Approved as to Form: Approved as to Form: Date Date By: By: Gil Granito Joan Arneson General Counsel General Counsel Date Date By By Yorba Linda Water District Santa Margarita Water District Ken Vecchiarelli John J. Schatz General Manager General Manager and General Counsel Approved as to Form: Date By: Arthur G. Kidman General Counsel 21 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Date Date By By City of Newport Beach City of Fountain Valley Dave Kiff Ray Kromer City Manager City Manager Approved as to Form: Approved as to Form: Date Date By: Robin Clauson By: City Attorney Alan R. Burns City Attorney 22 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7-1-10 Attachment A = Digital Map Contract Attachment B = Red Oak Consulting Contract Attachment C = Raftelis Financial Consultants Attachment D = DWR Grant Contract Attachment E = Grant Sharing Summary Attachment F = MWDOC Drug and Alcohol Free Workplace Program 23 Agreement Agreement for Participation in Water Budget Based Tiered Rate Grant Program DRAFT 7 -1 -10 Attachment E Budget Based Tiered Water Rates Grant Sharing Proposal - April 2010 Participants Phase 2 Digital Mapping Phase 1 Rate Structure Phase 3 IT Hardware Software Max Grant Funds Approximate Minimum Total Funds to Meet 71% Local Match Approximate Local Funds to Meet 71% Match 1. Garden Grove Yes 3,000 10,000 7,000 2. Buena Park X X 68,000 234,000 166,000 3. Yorba Linda WD X X 68,000 234,000 166,000 4. South Coast WD Yes X X 71,000 245,000 174,000 5. El Toro WD Yes X X 71,000 245,000 174,000 6. Huntington Beach X X 68,000 234,000 166,000 7. Moulton Niguel Yes X X 71,000 245,000 174,000 8. SMWD Yes 3,000 10,000 7,000 9. Newport Beach X X 68,000 234,000 166,000 10. San Juan Capistrano Yes 3,000 10,000 7,000 11. East Orange County WD Yes X X 71,000 245,000 174,000 12. Mesa Consolidated WD Yes 3,000 10,000 7,000 13. Fountain Valley X 34,000 117,000 83,000 14. MWDOC + contingency Yes 83,000 286,000 203,000 Total 9 9 8 685,000 2,362,000 1,674,000 Unit Grant Share Per Activityl 3,0001 34,0001 34,000 Total Per Categoryl 27,0001 306,0001 272,0001 605,000 Conditions for Receipt of Grant Funds: 1. Participants must provide 71% local funds or in -kind services to receive up to 29% grant funds, up to max in the table. 2. Grant funds shown in Table cannot be exceeded unless some Participants don't use all funds. 3. Participants may "utilize" excess matching funds not required by other Participants, if available. Pz! Attachment F MWDOC's DRUG AND ALCOHOL FREE WORKPLACE PROVISIONS Section 1. Introduction Using, possessing, purchasing, selling, negotiating sale or purchase or being under the influence of drugs, or being under the influence of alcohol, during working time, or on District premises, including parking lots, or while operating a personal vehicle on company business, is absolutely forbidden and will result in discharge or other discipline as the District deems appropriate. Section 2. Prescription Drugs: The use of prescription drugs which would not alter an employee's work performance is acceptable, if prescribed to the employee by a licensed healthcare provider. In the event there is a question regarding an employee's ability to perform assigned duties safely and effectively while using such drugs, clearance from a licensed health care provider may be required before the employee is allowed to resume the employee's regular duties. Section 3. Employees Duties and Responsibilities A. Notify their supervisor before beginning work when taking drugs (prescription or non-prescription), which the employee reasonably believes may interfere with the safe and effective performance of their duties; B. Not report to work, be at work, or work while under the influence of, or while his or her ability to perform job duties is impaired due to, on or off-duty alcohol or drug use; C. Not possess or use alcohol or impairing drugs or substances while on duty, at work, or working; D. Not directly, or through a third party, sell or provide drugs or alcohol to any person, including an employee, while either or both employees is on duty, at work, or working; E. Submit immediately to an alcohol or drug test when directed by a supervisor or manager; F. Provide, within 24 hours of request, bonafide verification of a current valid prescription for any potentially impairing drug or medication identified when a drug screen/test is positive. The prescription must be from a licensed health care provider and in the employee's name; and G. Report any conviction received pursuant to a criminal drug statute for violations for conduct occurring on or off District premises while conducting District business. A report of conviction must be made to the Administrative 25 Services Manager within five (5) days after conviction, as mandated by the Federal Drug-Free Workplace Act of 1988. H. The unlawful manufacture, distribution, dispensing, possession or consumption of any controlled substance is prohibited anytime an employee is on duty, at work or working. 1. Any violation of this section and other provisions of this Policy may result in discipline, up to and including termination. Section 4. Alcohol at District Sponsored Events: With prior approval of Management and in Management's sole discretion, the District may allow employees to consume moderate amounts of alcohol at District sponsored social events outside of normal business hours where such use is appropriate in the circumstances. Employees who are found to be under the influence of alcohol, or who engage in misconduct at such events, are subject to discharge or discipline, in accordance with District processes and procedures. Section 5. Pre-Employment Testing: A. As a condition of every offer of employment or any promotion or new assignment, the District reserves the right to require any new hire to undergo and successfully complete a blood, urine, or other chemical test for drugs or alcohol. B. The drug and/or alcohol test may test for any substance which could impair an employee's ability to perform the functions of their job effectively and safely, including, but not limited to, prescription drugs, alcohol, and other controlled substances. C. All testing (including sample collection, chain of custody and laboratory services) shall be conducted in accordance with the approved procedures of the substance Abuse and Mental Health Services Administration, formerly NIDA. The results of testing shall be reviewed by a medical review officer, who shall be a licensed physician, possessing appropriate training, and knowledgeable about substance abuse disorders. D. Pre-employment drugs and/or alcohol test result. 1. A positive result form a drug and/or alcohol analysis may result in the applicant not being hired where the applicant's use of drugs and /or alcohol could affect requisite job standards, duties or responsibilities. 2. If a drug screen is positive at the pre-employment physical, the applicant must provide, within 24 hours of the request, bona fide verification of a valid current prescription for the drug identified in the drug screen. If the prescription is not in the applicant's name or the applicant does not provide acceptable verification, or if the drug is one that is likely 26 to impair the applicant's ability to perform the job duties, the applicant may not be hired. Section 6. Reasonable Cause Testing: A. As a condition of continued employment, the District may require any employee to undergo and successfully complete a blood, urine, or other chemical test for drugs or alcohol whenever the District has reasonable suspicion to believe the employee is under the influence of or impaired by drugs or alcohol while on duty, at work, or working. B. A determination that an employee is under the influence of or impaired by drugs or alcohol will be based on specific personal observations of any of the following, which alone or in combination, may constitute reasonable suspicion depending upon the circumstances in which the behavior is observed and/or reported: 1. Bloodshot eyes; 2. Glassy eyes; 3. Dilated pupils; 4. Slurred Speech; 5. Odor on breath; 6. Drowsiness; 7. Euphoria; 8. Mood swings; 9. Inattentiveness; 10. Excitement and confusion 11. Irritability; 12. Aggressiveness; 13. Shaking or erratic movement; 14. Disorientation; 15. Unsteady walking and movement; 16. An accident involving District property, where it appears the employee's conduct is at fault; 17. Physical altercation; 18. Verbal altercation; 19. Unusual behavior; 20. Use or possession of alcohol, drugs or paraphernalia; and/or 21. Information obtained from a reliable person with personal knowledge. 27 C. Any Manager or supervisor requiring an employee to submit to a drug/and or alcohol test should document in writing the facts constituting reasonable suspicion that the employee in question is impaired or under the influence. A manager or supervisor's failure to comply with this paragraph does not invalidate the directive to submit to testing. D. All testing will be conducted at a clinic or laboratory selected by the District, with appropriate safeguards for privacy, confidentiality, and accuracy. Test results will be kept confidential to the fullest extent required by law, and will be maintained separate from the individual's personnel file. All testing (including sample collection, chain of custody and laboratory services) shall be conducted in accordance with the approved procedures of the Substance Abuse and Mental Health Services Administration, formerly NIDA. The results of testing shall be reviewed by a medical review officer, who shall be a licensed physician, possessing appropriate training, and knowledgeable about substance abuse disorders. The manager of supervisor may arrange for the employee to be transported to a testing facility, and then home afterwards. The manager or supervisor may also notify appropriate law enforcement agencies. E. The reports or test results may be disclosed to District management on a strictly need-to-know basis and to the tested employee upon request. Disclosures, without patient consent, may also occur when: (1) the information is compelled by law or pursuant to a lawfully issued subpoena; (2) the information has been placed at issue in a formal dispute between the employee and the District; (3) the information is to be used in administering an employee benefit plan; or (4) the information is needed by medical personnel for the diagnosis or treatment of the patient who is unable to authorize disclosure. F. Managers and supervisors shall notify their department head or designee when they have reasonable suspicion to believe that an employee may have controlled substances in his or her possession or in an area not jointly or fully controlled by the District. If the department head or designee concurs that there is a reasonable suspicion of illegal drug possession, the department head shall notify the appropriate law enforcement agencies. Employees are required to cooperate with the District and its clinic or laboratory in conducting tests. Employees who refuse to undergo testing or who interfere with the testing process, including but not limited to interference by unreasonable delay or contamination or tampering of the sample, will be subject to immediate discharge or discipline. Employees who test positive, fail to cooperate with testing procedures, or otherwise violate this policy are subject to discharge or other discipline. In any case involving unusual or extenuating circumstances, the District in its sole discretion may allow an applicant or employee who tests positive to commence or continue employment, subject to the condition that the employee undergo some form of treatment for addictions or abuse of drugs and alcohol as 28 determined by the District, in its sole discretion and submit to periodic or random testing as required by the District. Section 7. Accommodation for Drug and Alcohol Rehabilitation Programs: The District will reasonably accommodate any employee who comes forward before violating this policy and requests to enter voluntarily into a drug or alcohol rehabilitation program. Such requests will be kept confidential as provided by law. Once an employee violates this policy, however, any request to enroll in a rehabilitation program in lieu of discharge or discipline will be left to the sole discretion of the District, and will require random testing and other necessary follow-up measures. Employees who wish to enroll in drug or alcohol rehabilitation are encouraged to come forward before they are found in violation of this policy. 29 ITEM NO. 2.2 AGENDA REPORT Meeting Date: August 17, 2010 Budgeted: N/A To: Board of Directors Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: No Prepared By: Cindy Botts, Management CEQA Compliance: N/A Analyst Subject: Proclamation Recognizing the Centennial Anniversary of the Association of California Water Agencies SUMMARY: The Association of California Water Agencies (ACWA) was formed in 1910 as a collection of five irrigation districts who wished to create one voice and lay the groundwork for developing California's water supply and delivery system. Today, ACWA is the largest coalition of public water agencies in the country and is a leader on California water issues and a respected voice for its members in the legislative and regulatory arenas in both Sacramento and Washington, D.C. STAFF RECOMMENDATION: That the committee support the resolution recognizing ACWA on their 100 year anniversary and recommend approval by the full Board of Directors. DISCUSSION: The Association of California Water Agencies (ACWA) celebrated its centennial anniversary in May 2010, with the theme of "A Century of Leadership, Vision for the Future". As part of this year-long celebration, ACWA is requesting proclamations from its member agencies recognizing and congratulating ACWA on its anniversary milestone. These proclamations will then be collected and posted on ACWA's website as part of their Anniversary Celebration archives. ATTACHMENTS: Name: Description: Type: ACWA Centennial PROCLAMATION.docx ACWA Centennial Proclamation Backup Material A PROCLAMATION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT IN RECOGNITION OF THE 100 YEAR ANNIVERSARY OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES WHEREAS, the Association of California Water Agencies (ACWA) is celebrating its centennial anniversary in May 2010; and WHEREAS, the theme for this 100th anniversary celebration is "A Century of Leadership, Vision for the Future"; and WHEREAS, ACWA was formed in 1910 when a group of five irrigation districts came together to create one voice and lay the groundwork for developing California's water supply and delivery system; and WHEREAS, their work would be reflected over the next 100 years in scores of local, regional and statewide water projects that together have allowed California to grow and prosper; and WHEREAS, ACWA today is the largest coalition of public water agencies in the country and is a leader on California water issues and a respected voice for its members in the legislative and regulatory arenas in both Sacramento and Washington, D.C.; and WHEREAS, the association was established to assist its members in promoting the development, management and reasonable beneficial use of good quality water at the lowest practical cost in an environmentally balanced manner; and WHEREAS, to achieve this goal, the association represents the interests of its public water agency members at the state and federal levels and keeps its members and other key audiences informed on water issues of interest to them; and WHEREAS, for a century ACWA has been a guiding force in California water policy and continues to help shape the laws, policy and regulations that affect the state's urban and agricultural water users. WHEREAS, ACWA and its public agency members will continue to seek a vision for California's water future. NOW, THEREFORE, IT IS PROCLAIMED by the Board of Directors of Yorba Linda Water District that the ASSOCIATION OF CALIFORNIA WATER AGENCIES (ACWA) be formally recognized and congratulated on their centennial anniversary. PROCLAIMED this twenty-sixth day of August 2010. William R. Mills President of the Board of Directors Kenneth R. Vecchiarelli General Manager ITEM NO. 2.3 AGENDA REPORT Meeting Date: August 17, 2010 To: Executive-Administrative- Organizational Committee From: Ken Vecchiarelli, General Manager Presented By: Pat Grady, Assistant General Dept: Administration Manager Prepared By: Pat Grady, Assistant General Manager Subject: Posting of Job Classifications and Salary Ranges SUMMARY: The State Controller's Office recently directed all cities and counties to post salary information of their employees. Currently, this requirement does not apply to water districts. STAFF RECOMMENDATION: That the Executive-Administrative-Organizational Committee consider Staff's recommendation to post employee job classifications, salary ranges and labor agreements. DISCUSSION: As the District continues to promote openness and transparency with its activities, staff is recommending that YLWD job classifications, salary ranges and labor agreements be made available to the public on the District's web site. Notwithstanding the State's directive, District staff believes posting this information also assists other public agencies when they conduct salary surveys and gather benefit information. Currently, staff is required to gather and send this information manually upon a request from another agency. With the information available on the web site, the manual process would be eliminated. Attached for the Committee's review is an article from the Orange County Register related to this issue. ATTACHMENTS: Name: r"escrip:dC3n Type OCRegister.pdf OCRegister Article Backup Material Print Article: O.C. cities dash to post personnel salaries Page 1 of 2 THE ORANGE COUNTY 0 Y RECjISTER O.C. cities dash to post personnel salaries By DOUG IRVING 2010-08-06 16:37:07 Billy L. Hutchinson went public recently - Facebook public - with his r small piece of the answer to a question that has settled across Y1~ KOrange County in the choppy wake of a government pay scandal. "You can't pick up a newspaper without reading about public sector compensation," the chief of police in Brea and Yorba Linda typed into his Facebook page. "In the interest of transparency, I am posting my annual salary: $189,862." Revelations from the tiny city of Bell in Los Angeles County - where the city manager made nearly $800,000 a year - have started a run on such transparency in Orange County. More than a dozen cities have posted salary information on the front pages of their websites in an effort to put some sunshine between them and Bell. UPDATE Report: Bell city manager's pay: $1.5 million Most other cities here have made at least some salary information available on their websites, but it's often tucked away on inside pages - and requires a solid grounding in government finance to understand. And, as the Orange County Register's OCWatchdog blog has reported since May in a series of articles about what city managers make, other perks - from pension payments to car allowances - can significantly drive up overall compensation. Government pay is very much in the spotlight these days. But even now, the level of information easily available to the public varies widely from city to city. "I thought, you know what, people are curious. They want to know," Hutchinson said of his decision to publicize his salary on Facebook. "Quite frankly, in my opinion, they have the right to know." You do have the right to know. The California Supreme Court ruled in 2007 that government salaries are open to the public. "Openness in government is essential to the functioning of a democracy," Chief Justice Ronald M. George wrote. And, with few exceptions, you can find salary information on your city's website - if you know where to look. Most have posted their labor agreements and salary tables under "Personnel" or "Human Resources." Only Stanton and Aliso Viejo don't appear to have their labor agreements or salary tables easily accessible online. The county also has posted its salary tables online, but they're so hard to find that it's easier to type "salary" into the search bar on the front page of its website. You'll then have to guess which of more than 1,300 results have what you're looking for. Click on "Salary Schedules" and then on "Title Schematics" in the right-hand column. The information isn't pretty to the naked eye - not for the county, not for the cities. Most salary tables show a range of possible pay rates for each employee, from the receptionist to the city manager. They don't say exactly how much those employees really take home, or how much extra they receive in benefits http://www.ocregister.com/common/printer/view.php?db=ocregister&id=261114 8/11/2010 Print Article: O.C. cities dash to post personnel salaries Page 2 of 2 and perks. They also often leave out the City Manager, City Council and other high-level - and highly paid - officials that have individual contracts. Under the law, those contracts should be available to anyone who asks. Some cities have tried to make things a little easier in the weeks since the Los Angeles Times began exposing the high salaries paid in the small city of Bell. At least 14 Orange County cities have posted homepage links to salary details for their city managers, city council members and other top-level city employees. Those show, for example, that Irvine pays its city manager a base salary of nearly $258,000, and the finance director in Villa Park makes just north of $85,000. City council members in Lake Forest make $8,448 a year, while those in Yorba Linda get a $36-a-month cell phone allowance in addition to monthly pay of $530. La Palma launched what it calls the "La Palma Transparency Webpage," with information about how much its city manager and city council makes, and links to its labor agreements. Newport Beach City Manager Dave Kiff posted a letter on his city's website, titled "What I Earn." The answer: $225,000 a year plus benefits. Officials in several other cities said they are working to make salary information more easily to find on their websites. Tustin has talked about creating a one-stop website with key city documents, including salary information. In Santa Ana, "we are sure looking for ways to make it easier to use," City Manager David Ream said. Costa Mesa is working to update its website with salary information that officials said will be "very simple, very clear" for residents. "I think that compensation is the rawest of raw nerves right now," said Terry Francke, general counsel for the open-government group Californians Aware. "And the officials know it. They also know that, beyond question, their compensation is a matter of public record." The state controller's office put an exclamation point on that last week, when it directed all cities and counties to supply pay information that it intends to compile for a statewide website. The office plans to post the pay of every employee in every city and county - "from police chiefs to lifeguards," spokesman Jacob Roper said. It won't include public employees who work for school districts, water districts and other special service districts, Roper said. And the controller's office is still determining what benefits and other perks it will include in its figures; "we're interested in more than just base salary," Roper said. The salary scandal in Bell "has gotten the public's attention like you cannot believe," said Shirley Grindle of Orange, who has spent her life fighting for more transparency in local government. Now, she added, "We cannot let it blow over." Register staff writers Jaimee Lynn Fletcher, Michael Mello, Annie Burris, Lou Ponsi, Cindy Carcamo, Deepa Bharath, Jessica Terrell, Sean Emery, Eugene Fields, Amanda Portillo, Kristine Guerra and Elysse James contributed to this report. Contact the writer: 714-704-3777 or dirvinq(a)ocregister.com © Copyright 2010 Freedom Communications. All Rights Reserved. Privacy Policy I User Agreement I Site Map http://www.ocregister.comlcommon/printer/view.php?db=ocregister&id=261114 8/11/2010 O.C. cities dash to post personnel salaries I city, salary, information - News - The Orange Page 1 of 1 City salaries online Fourteen cities in Orange County have posted salary details for their city managers and city councils on their website homepages: • Brea • Cypress • Fullerton • Irvine • La Habra • La Palma • Laguna Beach • Laguna Woods • Lake Forest (City Council only) • Newport Beach • Placentia • San Clemente • Villa Park • Yorba Linda http://www.ocregister.conVnews/city-261114-salary-information.html 8/11/2010 ITEM NO. 2.4 AGENDA REPORT Meeting Date: August 17, 2010 Budgeted: N/A Total Budget: N/A To: Board of Directors Cost Estimate: N/A Funding Source: N/A From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Annie Alexander, Executive CEQA Compliance: N/A Secretary Subject: Reschedule Board Meetings SUMMARY: On November 11, 2010, November 25, 2010 and December 23, 2010, the regularly scheduled Board of Directors meetings will conflict with the Veterans, Thanksgiving and Christmas holidays, respectively. Staff recommends rescheduling these meetings to a different date. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors reschedule the regularly scheduled Board meetings as follows: . Reschedule Thursday, November 11, 2010 to Wednesday, November 10, 2010 at 8:30 a.m. . Reschedule Thursday, November 25, 2010 to Wednesday, November 24, 2010 at 8:30 a.m. . Reschedule Thursday, December 23, 2010 to Wednesday, December 22, 2010 at 8:30 a.m. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors routinely reschedules Board and Committee meetings that conflict with holidays, conferences or special events. ITEM NO. 2.5 AGENDA REPORT Meeting Date: August 17, 2010 To: Executive-Administrative- Organizational Committee From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Subject: Schedule Financial Planning Workshop Meeting for Mid-October SUMMARY: The District's Water Rate Study is currently in progress and the consultant has prepared a financial modeling worksheet that allows the District to model various scenarios including levels of reserve funding, effects of inflation on water related expenses, salaries, benefits and other related costs. In preparation of a three to five year financial plan, staff suggests the Board schedule a Financial Planning Workshop in mid-October 2010. STAFF RECOMMENDATION: That the Committee support scheduling a Financial Planning Workshop for Thursday, October 21, or Friday, October 22, 2010. ITEM NO. 3.1 AGENDA REPORT Meeting Date: August 17, 2010 Budgeted: Yes Total Budget: $77,740 To: Executive-Administrative- Cost Estimate: $53,120 Organizational Committee Funding Source: All Funds From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Board of Directors Manager Prepared By: Delia Lugo, Senior Accountant Subject: Director's and General Manager's Quarterly Fees and Expenses (Apr-June) and Fiscal Year to Date Expenses for FY 2009/10 SUMMARY: The Quarterly Report of the Directors' and General Manager's expenses for the fourth quarter of Fiscal Year 2009/10 and expenses year-to-date show all such expenses are well under budget. STAFF RECOMMENDATION: For information and discussion only. DISCUSSION: The Quarterly Report of the Directors' and General Manager's expenses for the fourth quarter of Fiscal Year 2009/10 is attached. The report shows no money (zero dollars) spent on travel and related expenses in the fourth quarter. Year-to-date related expenses including Directors fees for FY 2009/10, finished under budget by over $26,620, as reflected on the attached year-to-date report. ATTACHMENTS: Travel _and_Expenses.xlsx Travel Expenses Backup Material BOD Dir Qtrly Rpt.xlsx Fees and Expenses QTR Backup Material BOD Dir YTD 2010.xlsx Fees and Expenses YTD Backup Material DIRECTORS RECAP OF TRAVEL /CONFERENCE EXPENSES April - June 2010 GL Trip Trip Trip Reimbursable expenses paid by YLWD Director Date Date Name Location Meals Lodging Travel Conf.fee Misc Total trip Total Beverage $0 $0 Collett $0 $0 Hawkins $0 $0 Mills $0 $0 Summerfield $0 $0 Total directors $0 $0 $0 $0 $0 $0 $0 General Manager Vecchiarelli $0 $0 Total GM $0 $0 $0 $0 $0 $0 $0 Total directors & GM $0 $0 $0 $0 $0 $0 $0 YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FISCAL YEAR 2009 -2010 4th QUARTER REPORT FROM 04 -01 -2010 TO 06 -30 -2010 BEVERAGE COLLETT HAWKINS MILLS SUMMERFIELD SUB -TOTAL VECCHIARELLI TOTAL REGULAR MEETINGS ATTENDED 6 6 5 6 6 29 COMMITTEE MEETINGS ATTENDED 10 5 6 11 5 37 OFF SITE MEETINGS ATTENDED 1 0 6 1 3 11 SPECIAL MEETINGS ATTENDED 2 2 2 2 2 10 TOTAL MEETINGS ATTENDED QTD 19 13 19 20 16 87 87 DIRECTOR FEES QTD $2,850 $1,950 $2,850 $3,000 $2,400 $13,050 $13,050 MEETING FEES BUDGET QTD $3,087 $3,087 $3,087 $3,087 $3,087 $15,435 $15,435 TRAVEL & CONF. EXPENSES QTD $0 $0 $0 $0 $0 $0 $0 TRAVEL & CONF. BUDGET QTD $625 $625 $625 $625 $625 $3,125 $3,125 DIR.FEES AND EXPENSES QTD $2,850 $1,950 $2,850 $3,000 $2,400 $13,050 $13,050 FEES AND EXPENSES BUDGET QTD $3,712 $3,712 $3,712 $3,712 $3,712 $18,560 $18,560 GEN MGR EXPENSES QTD $0 $0 GEN MGR TRAVEL /CONF. BUDGET QTD $875 $875 TOTAL FEES & EXPENSES QTD $2,850 $1,950 $2,850 $3,000 $2,400 $13,050 $0 $13,050 TOTAL FEES & EXPENSES BUDGET QTD $3,712 $3,712 $3,712 $3,712 $3,712 $18,560 $875 $19,435 YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FISCAL YEAR 2009 -2010 YEAR -TO -DATE REPORT FROM 07 -01 -2009 TO 06 -30 -2010 GEN MGR EXPENSES YTD GEN MGR TRAVEL CONF. BUDGET YTD TOTAL FEES & EXPENSES YTD TOTAL FEES & EXPENSES BUDGET YTD TOTAL 323 $48,150 $61,740 $2,338 $12,500 $50,488 $74,240 $2,631 $2,631 $3,500 $3,500 $3,600 $12,177 $7,800 $4,110 $12,451 $10,350 $50,488 $2,631 $53,119 $7,424 $14,848 $14,848 $7,424 $14,848 $14,848 $74,240 $3,500 $77,740 ARMSTRONG BEVERAGE COLLETT HAWKINS MILLS SUMMERFIELD SUB -TOTAL VECCHIARELLI REGULAR MEETINGS ATTENDED 9 23 22 7 23 23 107 COMMITTEE MEETINGS ATTENDED 7 35 19 8 33 25 127 OFF SITE MEETINGS ATTENDED 3 5 1 9 11 10 39 SPECIAL MEETINGS ATTENDED 5 11 10 3 10 11 50 TOTAL MEETINGS ATTENDED YTD 24 74 52 27 77 69 323 DIRECTOR FEES YTD $3,600 $11,100 $7,800 $4,050 $11,250 $10,350 $48,150 MEETING FEES BUDGET YTD $6,174 $12,348 $12,348 $6,174 $12,348 $12,348 $61,740 TRAVEL & CONFERENCES EXPENSES YTD $0 $1,077 $0 $60 $1,201 $0 $2,338 TRAVEL & CONFERENCE BUDGET YTD $1,250 $2,500 $2,500 $1,250 $2,500 $2,500 $12,500 DIRECTORS FEES & EXPENSES YTD $3,600 $12,177 $7,800 $4,110 $12,451 $10,350 $50,488 FEES & EXPENSES BUDGET YTD $7,424 $14,848 $14,848 $7,424 $14,848 $14,848 $74,240 GEN MGR EXPENSES YTD GEN MGR TRAVEL CONF. BUDGET YTD TOTAL FEES & EXPENSES YTD TOTAL FEES & EXPENSES BUDGET YTD TOTAL 323 $48,150 $61,740 $2,338 $12,500 $50,488 $74,240 $2,631 $2,631 $3,500 $3,500 $3,600 $12,177 $7,800 $4,110 $12,451 $10,350 $50,488 $2,631 $53,119 $7,424 $14,848 $14,848 $7,424 $14,848 $14,848 $74,240 $3,500 $77,740 ITEM NO. 3.2 AGENDA REPORT Meeting Date: August 17, 2010 Budgeted: Yes Total Budget: $280,000 (FY 2010/11) To: Executive-Administrative- Cost Estimate: $15,191 (July only) Organizational Committee Funding Source: All Funds From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Prepared By: Delia Lugo, Senior Accountant Subject: General Counsel's Monthly Summary Billing Report July 2010 SUMMARY: For the month of July, 2010, General Counsel legal expenses totaled $15,190.94, including the monthly retainer of $2,000. The bulk of the expenses, $10,375.94, were incurred in support of the defense efforts on litigation related to the Freeway Complex Fires. STAFF RECOMMENDATION: For information and discussion only. ATTACHMENTS: Name: Description: Type: McCormick Summary Billing Chart.xlsx McCormick Summary Billing Chart Backup Material McCormick Summary for EAO_Agenda.xls McCormick Summary Report Backup Material YORBA LINDA WATER DISTRICT MONTHLY SUMMARY BILLING CHART BILLING MONTH: July 2010 Matter Matter Date Task Order Name Number Opened Amount CURRENT FISCAL YEAR 2010 -2011 Current Billing Total Billed to Date Total Billed 2009 -2010 July 27, 2010 Current Fiscal Year Prior Fiscal Year CONSTRUCTION CONTRACTS 002 7/31/2007 N/A $1,767.50 $1,767.50 $34,810.81 PROPERTY TAX ALLOCATION 030 $0.00 $0.00 $1,404.54 OCWD ANNEXATION 040 1/13/1994 N/A $547.50 $547.50 $7,177.31 SHELL 051 $0.00 $0.00 $51.34 FREEWAY COMPLEX FIRE LITIGATION 068 8/25/2003 $10,375.94 $10,375.94 $83,767.98 YLWD DEIMER PLANT 069 $0.00 $0.00 $4,597.50 LAKEVIEW RESERVOIR 081 3/2/2005 $20,000.00 $0.00 $0.00 $577.50 NON - CONSTRUCTION AGREEMENTS 084 4/5/2005 $11,000.00 $500.00 $500.00 $22,735.40 CELL TOWER 085 7/28/2006 $15,000.00 $0.00 $0.00 $2,043.80 WATER RATES/WATER CONSERVATION 087 7/31/2006 $10,000.00 $0.00 $0.00 $15,159.35 GRANDVIEW SEWER 091 5/30/2007 $10,000.00 $0.00 $0.00 $545.50 2010 DEVELOPMENT PROPOSALS 094 1/19/2010 $0.00 $0.00 $6,500.00 CIELO VISTA 095 2/3/2010 $0.00 $0.00 $2,787.12 CODE OF ETHICS 096 2/19/2010 $0.00 $0.00 $4,455.00 ANAHEIM WELLS 097 3/31/2010 $0.00 $0.00 $907.50 SAVI ANNEXATION 098 5/17/2010 $0.00 $0.00 $1,072.50 TOTAL $13,190.94 $13,190.94 $188,593.15 McCormick, Kidman & Behrens Summary of Current Month and FYTD Charges Month of Jul-2010 Expensed 15,190.94 Job charges 0.00 Current Month Total $15,190.94 YTD through Jul-2010 Expensed 15,190.94 Job charges 0.00 FYTD Total $15,190.94