HomeMy WebLinkAbout2010-10-14 - Board of Directors Meeting Agenda PacketYorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, October 14, 2010, 8:30 AM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
William R. Mills, President
Michael J. Beverage, Vice President
Ric Collett
Phil Hawkins
John W. Summerfield
4. ADDITIONS /DELETIONS TO THE AGENDA
5. PUBLIC COMMENTS
Any individual wishing to address the Board is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment
when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited
to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five
minutes.
6. SPECIAL RECOGNITION
6.1. Introduce Alfredo Vargas, Newly Hired GIS Technician
7. CONSENT CALENDAR
All items listed on the consent calendar are considered to be routine matters, status reports, or documents
covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion.
There will be no discussion on the items unless a member of the Board, staff, or public requests further
consideration.
7.1. Minutes of the Regular Board of Directors Meeting Held September 23, 2010
Recommendation: That the Board of Directors approve the minutes as presented.
7.2. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize disbursements in
the amount of $3,924,917.39.
7.3. Engineering Services for the 2010 Waterline Replacement Project
Recommendation: That the Board of Directors authorize execution of a Professional
Services Agreement with RBF, for a fee not to exceed $219,309, to provide
engineering design, bidding support services and construction management for the
2010 Waterline Replacement Project.
7.4. Terms and Conditions for Water and Sewer Service with K. Hovnanian Homes for Tract
17105
Recommendation: That the Board of Directors approve the Terms and Conditions
for Water and Sewer Service with K. Hovnanian Homes for Tract No. 17105, Job
No. 201023.
8. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board discussions are needed prior to
formal Board action.
8.1. Application and Agreement with the California Public Employees' Retirement System
Recommendation: That the Board of Directors approve Resolution 10 -20 Aproving
the Execution of an Application and Agreement (PERS MED -32D) with the
California Public Employees' Retirement System.
8.2. Authorized and Budgeted Positions for the Remainder of FY 2010/2011
Recommendation: That the Board of Directors approve Resolution No. 10 -21
Revising the Authorized and Budgeted Positions for the Remainder of Fiscal Year
2010/11 and Rescinding Resolution No. 10 -17.
8.3. Audit Reports for Fiscal Year 2009/10
Recommendation: That the Board of Directors receive and file the FY 2009/10
Comprehensive Annual Financial Report, the Report on Internal Control and the
Communication To Those In Governance Letter.
9. DISCUSSION ITEMS
This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the
Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for
which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the
District's interest to discuss these more complex matters at one meeting and consider formal action at another
meeting. This portion of the agenda may also include items for information only.
9.1. Results of Fire Flow Testing in Hidden Hills Area
10. REPORTS. INFORMATION ITEMS. AND COMMENTS
10.1. President's Report
10.2. Directors' Reports
10.3. General Manager's Report
• ACWA Legal Conference Presentation - September 30, 2010
10.4. General Counsel's Report
10.5. Future Agenda Items and Staff Tasks
11. COMMITTEE REPORTS
11.1. Executive Administrative - Organizational Committee
(Mills /Beverage) Alternate: Collett
• Meeting scheduled October 19, 2010 at 4:00 p.m.
11.2. Finance - Accounting Committee
(Summerfield /Collett) Alternate: Mills
• Minutes of meeting held October 11, 2010 at 4:00 p.m. (To be provided at the
meeting.)
• Meeting scheduled November 8, 2010 at 4:00 p.m.
11.3. Personnel -Risk Management Committee
(Collett /Hawkins) Alternate: Summerfield
• Minutes of meeting held October 12, 2010 at 4:00 p.m. (To be provided at the
meeting.)
• Meeting scheduled November 9, 2010 at 4:00 p.m.
11.4. Planning- Engineering- Operations Committee
(Mills /Summerfield) Alternate: Beverage
Minutes of meeting held October 6, 2010 at 4:00 p.m.
Meeting scheduled November 4, 2010 at 4:00 p.m.
11.5. Public Information - Technology Committee
(Beverage /Hawkins) Alternate: Summerfield
• Meeting scheduled October 5, 2010 was rescheduled to October 20, 2010 at 4:00 p.m.
11.6. MWDOC /OCWD Ad Hoc Committee
(Mills /Beverage) Alternate: Collett
Minutes of meeting held September 28, 2010 at 4:00 p.m.
Meeting scheduled November 23, 2010 was rescheduled to November 16, 2010 at
4:00 p.m.
11.7. Citizens Advisory Committee
Minutes of meeting held September 27, 2010 at 8:30 a.m.
Meeting scheduled October 25, 2010 at 8:30 a.m.
12. INTERGOVERNMENTAL MEETINGS
12.1. YL Planning Commission - September 29, 2010 (Collett)
12.2. ISDOC - September 30, 2010 (Beverage)
12.3. WACO - October 1, 2010 (Hawkins)
12.4. YL City Council - October 5, 2010 (Mills)
12.5. MWDOC /MWD Workshop - October 6, 2010 (Staff)
12.6. OCWD Board - October 6, 2010 (Staff)
12.7. YL Planning Commission - October 13, 2010 (Collett)
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from October 15, 2010 - November 30, 2010
14. CONFERENCES AND SEMINARS
14.1. MWDOC Water Policy Forum & Dinner - November 4, 2010
MWDOC 20 x 2020 Summit - November 10, 2010
Recommendation: Authorize Directors and such staff members of the District as
approved by the General Manager to attend the above listed conferences.
15. CLOSED SESSION
The Board may hold a closed session on items related to personnel, labor relations and /or litigation. The public is
excused during these discussions.
15.1. Conference with Legal Counsel — Pending Litigation
Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code
Name of Case: Itani, et al vs. YLWD (OC Superior Court — Case No. 00124906)
Name of Case: Johnson, et al vs. YLWD, et al (OC Superior Court — Case No.
00125994)
Name of Case: State Farm General Insurance Company vs. YLWD (OC Superior Court
— Case No. 00311353)
Name of Case: Weiss vs. YLWD (OC Superior Court - Case No. 00319080)
Name of Case: Lindholm vs. YLWD, et al (OC Superior Court - Case No. 00320239)
Name of Case: Travelers Commercial Insurance Company vs. YLWD (OC Superior
Court - Case No. 00327152)
Name of Case: Manista vs. YLWD, et al (OC Superior Court - Case No. 00332968)
Name of Case: Rodriguez vs. YLWD, et al (OC Superior Court - Case No. 00333938)
Name of Case: American Security Insurance Company, et al vs. YLWD (OC Superior
Court - Case No. 00348304)
Name of Case: Buc vs. YLWD (OC Superior Court - Case No. 00409755)
16. ADJOURNMENT
16.1. The Board of Directors will be holding a workshop meeting on October 21, 2010 at 9:00
a.m. The next regular meeting of the Board of Directors will be held October 28, 2010 at
8:30 a.m.
Items Distributed to the Board Less Than 72 Hours Prior to the Meetina
Pursuant to Government Code section 54957.5, non - exempt public records that relate to open session agenda items
and are distributed to a majority of the Board less than seventy -two (72) hours prior to the meeting will be available for
public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870,
during regular business hours. When practical, these public records will also be made available on the District's internet
website accessible at http: / /www.ylwd.com /.
Accommodations for the Disabled
Any person may make a request for a disability - related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714 - 701 -3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885 -0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability - related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
AGENDA REPORT
Meeting Date: October 14, 2010
ITEM NO. 7.1
Subject: Minutes of the Regular Board of Directors Meeting Held September 23, 2010
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name: Description: Type:
092310 BOD - Minutes.doc BOD Mtg Minutes 09/23/10 Minutes
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
RC /PH 5 -0
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
September 23, 2010
Michael J. beverage, Vice Nresident
Ric Collett
Nat vrady, Assistant Veneral Manager
Steve Conklin, Engineering Manager
e Cory, Operations Manager
9phen Parker, Finance Director
ithony Manzano, Sr Project Manager
hn DeCriscio, Chief Plant Operator
hn Brundahl, Sr Plant Operator
inie Alexander, Executive Secretary
OTHER VISITORS
Nancy Rikel, Mayor Pro Tem, City of Yorba Linda
4. ADDITIONS /DELETIONS TO THE AGENDA
None.
5. PUBLIC COMMEN ..
None.
6. SPECIAL RECOGNITION
6.1. Recognize John Brundahl, Senior Plant Operator, for Completion of the
ACWA/JPIA Professional Development Program
The Board of Directors commended Mr. Brundahl for completion of the
Supervisor Basics specialty in the ACWA/JPIA Professional Development
Program.
Messrs. DeCriscio and Brundahl left the meeting at this time.
7. CONSENT CALENDAR
Staff responded to questions
payments included on Item No.
from Director Beverage regarding a few bill
r &A
On a motion by Director Beverage, seconded by Director Collett, the Board voted
4 -0 to approve the Consent Calendar. Director Collett abstained from voting on
Check No. 54973 of Item No. 7.2. as he had a financial interest with the vendor.
Recommendation. That the Board of Directors approve Progress
Payment No. 28, in the net amount of $251,805.53, to Schuler
Engineering Corporation and 5% retention of $13,252.92, deposited
to Citizens Business Bank escrow account, for construction of the
Highland Reservoir Replacement Project, Job No. 200309.
®® ®®
MEMO
MENEM MEN
Water Supply Assessment for the City of Yorba Linda 2008/2014 Housing
Element
Mr. Conklin explained that staff had received a request from the City of
Yorba Linda to prepare a Water Supply Assessment for their 2008/2014
Housing Element and Implementation Plan for the potential rezoning of 13
properties to higher density, multi - family residential communities. Staff
has completed the assessment and estimates a maximum annual demand
of 553 AF per year for this project. The Planning- Engineering- Operations
Committee reviewed this matter at its meeting on September 8, 2010 and
supports staff recommendation. Mr. Conklin then responded to questions
from the Board regarding the assessment.
On a motion by Director Beverage, seconded by Director Hawkins, the
Board voted 4 -0 to adopt the Water Supply Assessment for the City of
Yorba Linda's Draft 2008 -2014 Housing Element and Implementation
Plan, to be incorporated as part of the Project Draft EIR.
2
8.2. MWDOC Turf Removal Rebate Program
Mr. Vecchiarelli stated that this item had not been presented to the Public
Information - Technology Committee due to time constraints. Mr.
Vecchiarelli then explained that MWDOC was looking to implement a new
turf removal rebate program. The program would require participating
agencies to conduct their own before and after inspections. Mr.
Vecchiarelli reported the District could provide matching funds from
currently budgeted conservation programs up to $10K. Mr. Vecchiarelli
then responded to questions from the Board regarding the budget for this
program, the possible linking of programs currently being offered at the
Fullerton Arboretum, and the City of Yorba Linda's landscape ordinance.
On a motion by Director Beverage, seconded by Director Collett, the
Board voted 4 -0 to participate in MWDOC's Turf Removal Rebate
Program with matching funds up to $10,000.
8.3. ISDOC Quarterly Meeting, Executive Committee Election and Ratification
of Annual Membership Dues
Mr. Vecchiarelli explained that in conjunction with its regular quarterly
meeting on September 30, 2010, ISDOC would be conducting an
Executive Committee election and asking its membership to ratify their
annual dues. ISDOC has requested that the Board designate one
representative and one alternate to vote on the District's behalf at this
meeting. The Board then discussed whether or not they supported the
slate of candidates for the Executive Committee. Following further
discussion it was determined that Director Beverage would attend the
meeting and vote on the District's behalf.
9.1. President's Report
None.
9.2. Directors' Reports
None.
9.3. General Manager's Report
Mr. Vecchiarelli reported on his attendance at the CSDA pre- conference
workshop held September 20, 2010 regarding effective strategic planning
for special districts.
9.4. Future Agenda Items and Staff Tasks
None.
3
10. COMMITTEE REPORTS
10.1. Executive - Administrative - Organizational Committee
(Mills /Beverage) Alternate: Collett
�or August ® ® ® ®®
Meeting scheduled October 19, 2010 at 4:00 p.m.
Meeting scheduled October 11, 2010 at 4:00 p.m.
10.3. Personnel -Risk Management Committee
(Collett /Hawkins) Alternate: Summerfield
Meetinq scheduled September 14, 2010 at 4:00 p.m. was cancelled.
Meeting scheduled October 12, 2010 at 4:00 p.m.
10.4. Planning- Engineering- Operations Committee
(Mills /Summerfield) Alternate: Beverage
Meeting scheduled October 7, 2010 at 4:00 p.m. was rescheduled to
October 6, 2010 at 4:00 p.m.
10.5. Public Information - Technology Committee
(Beverage /Hawkins) Alternate: Summerfield
Minutes of the meeting held September 16, 2010 were provided in the
agenda packet. Matters discussed during the meeting were as follows: IT
Projects Monthly Status; GIS & IT Master Plan Elements; Proposed YLWD
Bottled Water Policy; Sports Groups Interest in Elk Mountain Project;
Fullerton Arboretum Water Conservation Class Curriculum; Fall
Newsletter Content; Public Outreach Activities; and Conservation
Ordinance Monthly Statistics.
12
Meeting scheduled October 5, 2010 at 4:00 p.m. was rescheduled to
October 20, 2010 at 4:00 p.m.
10.6. MWDOC /OCWD Ad Hoc Committee
(Mills /Beverage) Alternate: Collett
Meeting scheduled September 28, 2010 at 4:00 p.m.
10.7. Citizens Advisory Committee
Meeting scheduled September 27, 2010 at 8:30 a.m.
11. INTERGOVERNMENTAL MEETINGS
12.1. Meetings from September 24, 2010 — October 31, 2010
The Board reviewed the listed meetings and made no additional changes.
13. ADJOURNMENT
13.1. The meeting was adjourned at 9:20 a.m. The next regular meeting of the
Board of Directors will be held October 14, 2010 at 8:30 a.m.
Ken Vecchiarelli
Board Secretary
5
AGENDA REPORT
Meeting Date: October 14, 2010
To: Board of Directors
From: Ken Vecchiarelli, General
Manager
Presented By: Stephen Parker, Finance
Director
Prepared By: Maria Trujillo, Accounting
Assistant I
Budgeted:
Total Budget:
Cost Estimate:
Funding Source:
Account No:
Job No:
Dept:
Reviewed by Legal:
CEQA Compliance:
Subject: Payments of Bills, Refunds, and Wire Transfers
SUMMARY:
ITEM NO. 7.2
Yes
N/A
$3,924,917.39
All Funds
N/A
N/A
Finance
N/A
N/A
Section 31302 of the California Water Code says the District shall pay demands made against it
when they have been approved by the Board of Directors. Pursuant to law, staff is hereby
submitting the list of disbursements for Board of Directors' approval.
STAFF RECOMMENDATION:
That the Board of Directors ratify and authorize disbursements in the amount of $3,924,917.39.
DISCUSSION:
The major items and wire transfers on this disbursement list are as follows: A wire of $86,207.95 to
ACWA -HBA for October 2010 health premium; a wire of $1,835,449.24 to U S Bank for 2003 and
2008 Certificates of Participation interest and principal payment; a wire of $1,113,945.62 to
MWDOC for August 2010 water purchase; and, a check of $70,108.75 to Southern California
Edison for September 2010 utility services on all sites. The balance of $334,005.39 is routine
invoices. The Accounts Payable check register total is $3,439,716.95; Payroll Nos. 19 and 20 totals
are $236,022.40 and $249,178.04, respectively; and, the disbursements of this agenda report are
$3,924,917.39. A summary of the checks is attached.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors approves bills, refunds and wire transfers semi - monthly.
ATTACHMENTS:
Name: Description: Type:
CkReg101414 BOD.pdf Check Register Backup Material
10 -CS 1014.doc Cap Sheet Backup Material
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
RC /PH 5 -0
RC abstained from voting on Check No.
55093 as he had a financial interest with the
vendor.
Yorba Linda Water District
Check Register
For Checks Dated: 9/24/2010 thru 10/14/2010
Check No.
Date
Vendor Name
Amount
55015
10/14/2010
A -1 Auto Parts & Auto Glass, Inc,
270.98
55016
10/14/2010
Abbott Staffing Group, Inc.
4,596.80
55017
10/14/2010
ACWA /JPIA
27,055.00
55018
10/14/2010
ACWA -Assn Of Ca Water Agencies
635.00
55137
10/14/2010
ACWA -Assn Of Ca Water Agencies
635.00
W92710
09/27/2010
ACWA -H BA
86,207.95
55019
10/14/2010
AJK Communications
3,751.88
55020
10/14/2010
Alternative Hose Inc.
74.97
55021
10/14/2010
Anthem Blue Cross EAP
162.80
55022
10/14/2010
Aqua- Metric Sales Co.
26,724.77
55023
10/14/2010
Aramark Uniform Services, Inc
675.89
55024
10/14/2010
Archie's Towing
218.75
55025
10/14/2010
Arrow Hardware
228.80
55026
10/14/2010
Associated Laboratories
2,372.10
55028
10/14/2010
AT & T
45.07
55027
10/14/2010
AT & T - Calnet2
4,436.66
55029
10/14/2010
AW Direct Inc.
97.08
55030
10/14/2010
Bank Of America
528.34
55031
10/14/2010
Battery Systems
266.13
55032
10/14/2010
Bryan Tyson
255.54
55043
10/14/2010
C & L Refrigeration Corp.
282.69
55033
10/14/2010
CA Department Of Public Health
20,704.19
55034
10/14/2010
Caesars Las Vegas
241.92
55035
10/14/2010
CATS
251.00
55036
10/14/2010
Calolympic Safety Co.
20.93
55037
10/14/2010
CALPELRA
350.00
SS038
10/14/2010
Carollo Engineers
15,680.00
55039
10,/14/2010
Centa Corporation
625.79
55040
10/14/2010
Ceridian Benefits Services
76.50
55041
14/14/2010
Chambers Group Inc.
1,403.75
55042
10/14/2010
City Of Placentia
11,109.73
55044
10/14/2010
Cobra Solutions, Inc
395.00
55045
10/14/2010
Cogsdale Services Corporation
4,583.33
55046
10/14/2010
Colorado River Water Users Asc
395.00
55047
10/14/2010
Cortech Engineering
900.05
55087
14/14/2014
County of Orange
623.20
55048
10/14/2010
CPS Human Resource Services
310.00
55049
10/14/2010
Dangelo Co.
76.02
55050
10/14/2010
Dell Marketing L.P.
7,567.78
55051
10/14/2010
Delta Wye Electric, Inc.
4,820.00
55052
10/14/2010
Derek Nguyen
255,00
55053
10/14/2010
Dick's Lock & Safe Inc.
25.03
55054
10/14/2010
Eisel Enterprises, Inc.
584.53
55055
10/14/2010
Employee Relations, Inc.
57.50
55056
10/14/2010
Employment Development Dept.
5,699.00
Description IS25k or greaterl
Workers' Comp Jul -Sep 2010
Inventory re -stock
55057
10/14/2010
Fairway Ford Sales, Inc.
481.27
55058
10/14/2010
Federal Express
52.45
55059
10/14/2010
Fidelity Security Life Ins/EyeMed
1,391.92
55060
10/14/2010
Fleet Services, Inc
2,906.30
55061
10/14/2010
Fry's Electronics
278.28
55062
10/14/2010
Golden Bell Products
206.63
55063
10/14/2010
Home Depot Credit Services
272.13
55064
10/14/2010
Infosend Inc.
8,478.13
55065
10/14/2010
Inland (Overhead Door Company
461.50
55010
09/27/2010
ISDOC (Independent Special Dist OC)
16,00
55066
10/14/2010
Jackson's Auto Supply - Napa
584.06
55067
10/14/2010
Jesus Sosa
31.00
55469
10/14/2010
Joyce Dale Consulting
1,210.50
55470
10/14/2010
KB Design
4,164.31
55071
10/14/2010
Kenneth R. Vecchiarelli
232.60
55011
10/14/2010
Larry Garrison
857.23
55072
10/14/2010
Layne Christensen Company
29,531.95
55073
10/14/2010
Leighton Consulting, Inc.
7,012.35
55074
10/14/2010
Liebert Cassidy Whitmore
2,646.00
55075
10/14/2010
Marina Landscape, Inc
931.47
55076
10/14/2010
Mc Cormick,Kidman & Behrens LLP
2,657.81
55077
10/14/2010
Mc Fadden -Dale Hardware
314.92
55078
10/14/2010
Mc Master -Carr Supply Co.
489.13
55079
10/14/2010
Mobile Industrial Supply
101.02
W101410
10/14/2010
Municipal Water District
1,113,945.62
55080
10/14/2010
Muzak LLC
65.25
55081
10/14/2010
MWH Americas, Inc.
1,375.00
55082
10/14/2010
Nickey Petroleum Co
9,230.41
55083
10/14/2010
Novusolutions
3,800.00
55084
10/14/2010
Occu -Med, Ltd.
57.00
55085
10/14/2010
Office Solutions
1,117.69
55086
10/14/2010
ONLINE Collections
48.87
W92910A
09/29/2010
Orange County Water District
8,809.00
55088
10/14/2010
Orange Tool & Industrial Supply
168.05
55100
10/14/2010
P.T.I. Sand & Gravel, Inc.
914.51
55089
10/14/2010
Pacific Coast Tool & Supply
299.06
55090
10/14/2010
Pacific Safety Council
1,795.00
55091
10/14/2010
Parts Source Anaheim
5.49
55012
10/14/2010
PAUL WATSON
88.52
55092
10/14/2010
PELRAC
150.00
55093
10/14/2010
Placentia Disposal 4676
573.96
55094
10/14/2010
Plumbers Depot Inc.
1,190.81
55095
16/14/2010
Praxair Distribution
833.26
55096
10/14/2010
Priority Mailing Systems LLC
463.00
55097
10/14/2010
Process Solutions, Inc.
1,575.00
55098
10/14/2010
Progressive Medical International
40.55
55099
10/14/2010
Prudential Group Insurance
3,002.98
55101
10/14/2010
Quality First Woodworks Inc
650.00
55104
10/14/2010
R J Services, Inc
4,734.59
55102
10/14/2010
Randy's Automotive & Transmission
3,921.56
55103
10/14/2010
Renaissance Esmerelda Resort & Spa
393.84
55013
10/14/2010
RITCHIE COCHRAN
24.23
55105
10/14/2010
RKI Engineering, LLC
3,300.00
55106
10/14/2010
Ryan W.Vanderhook
750.00
55107
10/14/2010
Safety -Kleen Corp.
329.30
Well optimiztn Engine repair
August 2010 water purchase
55108
10/14/2010
Schorr Metals, Inc.
261.96
55109
10/14/2010
Shape Products Co.
175.59
55110
10/14/2010
Shred -It USA Inc
72.15
55068
10/14/2010
Snap -On Tools
320.51
55111
10/14/2010
South Coast ARM D
1,868.26
55112
10/14/2010
Southern Calif Edison Co.
70,108.75
55113
10/14/2010
Southern Calif Gas Co.
3,926.78
55114
10/14/2010
Southwest Networks Inc.
1,843.31
55115
1011412010
Spinitar
315.00
55116
10/14/2010
Stacy Bavol /Petty Cash
252.13
55117
10/14/2010
Staples Advantage
697.61
55118
10/14/2010
Suburban Propane
25.12
55119
10/14/2010
Systems Source Inc
445.71
55120
10/14/2010
Terminix Processing Center
185.00
55121
10/14/2010
Terminix Processing Center
312.00
55122
10/14/2010
Tetra Tech, ISG
16,749.98
W92910
09/29/2010
U S Bank Trust National Assn.
1,835,449.24
55123
10/14/2010
Underground Service Alert
183-00
55124
10/14/2010
United Industries
173.67
55125
10/14/2010
United Rentals - Fullerton
301.60
55126
10/14/2010
United Traffic Services & Supply
346.37
55127
10/14/2010
USA Blue Book
587.80
55128
10/14/2010
Valverde Construction, Inc.
17,073.73
55129
10/14/2010
Village Nurseries
125.94
55130
10/14/2010
Water Environment Federation
217.00
55131
10/14/2010
Wells Supply Co
16,204.09
55132
10/14/2010
West Coast Safety Supply Co
2,833.20
55133
10/14/2010
Westside Building Material
1,479.90
55009
10/04/2010
William Wittich
- 604,90
55009
09/24/2010
William Wittich
604.90
55134
10/14/2010
William Wittich
604.90
55014
10/14/2010
Winston Chan
84.12
55135
1.0/14/2010
Xerox Corporation
1,224.25
55136
10/14/2010
Yorba Linda Hardware
19.32
Total
$3,439,716.95
Utility all sites September
2003 and 2008 COP int/principl
Check lost in mail by cult
October 14, 2010
CHECK NUMBERS:
Manual Check
55009
$
604.90
Void Check
55009
$
(604.90)
Manual Check
55010
$
16.00
Computer Checks
55011-55137
$
395,289.14
4652
$
395, 305.14
WIRES:
W -92710
ACWA -HBA
$ 86,207.95
W -92910
U S Bank
$1,835,449.24
W-9291 OA
OCWD
$ 8,809.00
W- 101410
MWDOC
$1,113,945.62
$3,044,411.81
TOTAL OF CHECKS AND WIRES $ 3,439,716.95
PAYROLL NOS. 19 and 20:
Computer Checks
4638
— 4641
Manual Checks
4642
— 4650
Void Check
4651
Manual Check
4652
$
236,022.40
Computer Checks
4653
— 4656
Manual Checks
4657
— 4666
$
249,178.04
----------------------------------------------------------------------------------------------------------------------
DISBURSEMENT TOTAL:
$
3,924,917.39
------------------------------------------------------------------
------------------------------------------------------------------
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF OCTOBER 14, 2010
------------------------------------------------------------------
------------------------------------------------------------------
AGENDA REPORT
Meeting Date: October 14, 2010
To: Board of Directors
From: Ken Vecchiarelli, General
Manager
Presented By: Steve Conklin, Engineering
Manager
Prepared By: Anthony Manzano, Senior
Project Manager
Budgeted:
Total Budget:
Cost Estimate:
Funding Source:
Account No:
Job No:
Dept:
ITEM NO. 7.3
Yes
$2M
$220,000 (Design &
CM)
Water Operating
Fund
101 -2700
201012
Engineering
Reviewed by Legal: Pending
CEQA Compliance: Exempt
Subject: Engineering Services for the 2010 Waterline Replacement Project
SUMMARY:
Staff issued a Request for Proposal for engineering design, bidding support services and
construction management for the 2010 Waterline Replacement Project. The District received four
proposals, which were evaluated and ranked. Subsequent to this evaluation, staff recommends
award of the project to RBF Consulting, Inc. (RBF), for a fee not to exceed of $219,309.
STAFF RECOMMENDATION:
That the Board of Directors authorize execution of a Professional Services Agreement with RBF, for
a fee not to exceed $219,309, to provide engineering design, bidding support services and
construction management for the 2010 Waterline Replacement Project.
COMMITTEE RECOMMENDATION:
The Planning- Engineering- Operations Committee discussed this item at its meeting on October 6,
2010 and supports staff's recommendation.
DISCUSSION:
The project consists of waterline replacements at eight locations, ranging from 200 to 3,000 feet in
length, totaling approximately 6,700 feet. The Project locations are identified in the Asset
Management Plan and the Capital Improvement Plan as priority replacements. The eight locations
were packaged as one project for efficiency and cost effectiveness.
Staff solicited proposals from five consulting firms experienced in this field. Four firms submitted
proposals. The District's review team ranked and scored the proposals based on experience of staff
and firm, content, and understanding of the project. Following the technical evaluation and ranking,
separate envelopes with fees for each proposal were opened by staff. Results of the ranking and
the proposed fee for each are as follows:
Firm
Evaluation Score
RBF Consulting, Inc. (RBF) 1271
Albert A. Webb Associates (Webb) 1262
PSOMAS 1226
Tetra Tech, Inc. (TTI) 1219
Fee
$ 219,309
$ 203,900
$ 346,978
$ 280,000
After extensive review of the four proposals, the engineering staff review team determined that RBF
had the best overall proposal, including a well experienced project manager and project team, a
very good project approach, and a reasonable and competitive proposed fee. Based on all factors,
staff recommends award to RBF.
ATTACHMENTS:
Name:
Exhibit A.pdf
Exhibit B.pdf
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
RC /PH 5 -0
Description: Type:
Exhibit A Backup Material
Exhibit B Backup Material
Birch
4\
EXHIBIT "A"
La Palma
Legend
Proposed Pipeline Project
����J sde.SDE.YLWD_Service_Boundary
2010 PIPELINE REPLACEMENT PROJECT VICINITY MAP
0 1,375 2,750
N
W+ E
S
5,500 8,250
Feet
111111 \�� ��► r E ��� ■
IMMIN
■11111. a .■ ■■D■■■■ i ■� �� 1
moll
/111 _
ills ONE,
n PLumosa Dr., from Lemon Dr.
to Bastanchury Road
i d�,C: A
Hidden Hills BPS Discharge Line N
L4
W +E
S
2010 PIPELINE REPLACEMENT PROJECT
LOCATION MAP 1 THRU 8
NO SCALE
EXHIBIT "B"
Tamarisk Dr., Fircrest Dr. &
Pebble Beach Ln.
i
i
1i I j I
North of Catalina Ct., & S. of Joel Brattain Dr.
11111E E �► � ���
IIIII - • -
I■
\R�q<
3 Sunwood / Peppertree Ln.
RENO /'
6 Easement S. of Gordon Ln. & E.
of Ohio St.
.EN7E-
�� ORANG�THORPE
o�
7 Richfield Rd. , 1200 LF of Proposed Slip Lining
$ Richfield Rd. , Nancita St. to approximately
100' N. of OCFCF - 200 LF of
new 8" dia. pipeline
ITEM NO. 7.4
AGENDA REPORT
Meeting Date:
October 14, 2010
Budgeted:
N/A
To:
Board of Directors
Funding Source:
Developer Funded
From:
Ken Vecchiarelli, General
Manager
Job No:
201023
Presented By:
Steve Conklin, Engineering
Dept:
Engineering
Manager
Reviewed by Legal:
N/A
Prepared By:
Earl Hamanaka, Engineering
CEQA Compliance:
N/A
Tech II
Subject:
Terms and Conditions for Water
and Sewer Service with
K. Hovnanian Homes
for Tract 17105
SUMMARY:
K. Hovnanian Homes is proposing to develop Tract 17105 into 143 condominium units on 16.49
acres. Annexation Fees will be required for this area which lies within Village 4, Planning Area "T" of
Vista Del Verde. The project is located east of Lakeview Avenue and north of Bastanchury Road as
shown on the attached exhibit.
STAFF RECOMMENDATION:
That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with K.
Hovnanian Homes for Tract No. 17105, Job No. 201023.
DISCUSSION:
The pad elevations within Tract 17105 are between 571 and 636 above mean sea level. The entire
tract will be served by the Gardenia Reservoir in the District's Pressure Zone 4, which has a high
water elevation of 780 feet. A portion of the lots will require individual pressure regulators since the
water pressures will exceed 80 p.s.i. The District has an existing Zone 4 pipeline in Lakeview
Avenue fronting this project, which is adequate in size and of sufficient pressure to serve the
project. Staff will also require that the applicant loop the proposed onsite water facilities at "G"
Street and "C" Street to provide greater redundancy onsite and to adjacent tracts.
Tract 17105 is located within Drainage Area "2" of the District's Sewer Service Area. The District
has an existing sewer main connection in Lakeview Avenue fronting the proposed project. Staff will
require the applicant to make a connection on the existing sewer main, which is adequate in size to
serve the project.
The applicant will be required to comply with the District's Standard Terms and Conditions for Water
and Sewer Service. The proposed Terms and Conditions for Water and Sewer Service with K.
Hovnanian Homes, Tract No. 17105 are attached for your consideration.
ATTACHMENTS:
Name:
201023 T C.doc
Tract_ 17105_ Area_T.pdf
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
RC /PH 5 -0
Description:
Terms and Conditions for Water and Sewer Service
Tract 17105 Exhibit
Type:
Backup Material
Backup Material
Date: October 14, 2010
YORBA LINDA WATER DISTRICT
TERMS AND CONDITIONS
FOR WATER AND SEWER SERVICE
NAME OF APPLICANT: K. HOVNANIAN HOMES
LOCATION OF PROJECT: EAST OF LAKEVIEW AVE. & NORTH OF BASTANCHURY RD.
TRACT NUMBER: 17105 JOB NUMBER: 201023 LOT(S): 143
The applicant will be required to complete to the satisfaction of the District the following
items that have an "X" following the number.
1) X The applicant shall provide the District with a copy of the Grant Deed or
Title Report of the property to be served.
2) X The applicant shall include information deemed necessary by the District in
the event the applicant is required to file a Department of Real Estate Tax
Disclosure statement.
3) The applicant shall provide to all purchasers of the homes a statement that
the home is located within Improvement District No. 1 and that the home is
subject to a property tax over and above the normal 1 % Basic Tax Levy to
pay for Production, Storage, and Transmission water facilities serving
Improvement District No. I.
4) The applicant shall provide to all purchasers of the homes a statement that
the home is located within Improvement District No. 2 and that the home is
subject to a property tax over and above the normal 1 % Basic Tax Levy to
pay for Production, Storage, and Transmission water facilities serving
Improvement District No. 2.
5) X The applicant shall submit two (2) sets of the improvement plans to the
District for plan check processing.
a) Improvement Plans
b) Grading Plans
c) Tract, Parcel or Vesting Map
d) Landscaping Plans
6) X Improvement Plans submitted for plan check shall comply with the submittal
requirements established by the YLWD Engineering Department.
Page 2 of 6
NAME OF APPLICANT: K. HOVNANIAN HOMES
LOCATION OF PROJECT: EAST OF LAKEVIEW AVE. & NORTH OF BASTANCHURY RD.
7) X The applicant shall dedicate or obtain all easements deemed necessary by
the District in accordance with the Rules and Regulations of the District. All
easement documents shall be prepared under the supervision of and
stamped by a Professional Land Surveyor or a Registered Civil Engineer
(licensed prior to January 1, 1982) licensed to practice in the State of
California.
8) X The applicant shall provide the District with a copy of the Recorded
Tract /Parcel Map(s) or Easement Documents illustrating all District
easements required by Term and Condition No. 7, prior to requesting
occupancy releases.
9) The applicant shall prepare and process all easements to be quitclaimed by
the District in accordance with the Rules and Regulations of the District.
10) X The applicant shall furnish the District with a 24 -hour emergency telephone
number prior to the District's approval of the construction plans.
11) X The applicant shall notify the District 48 hours prior to initiating any work
related to required or proposed improvements.
12) X The applicant shall complete a Temporary Construction Meter Permit
application for all water to be used in construction work and all water used
under such permit shall be taken from the approved construction meter.
13) X The applicant shall provide per the District specifications one complete set
of "As Built" mylars and electronic copy of ACAD drawings (version 2008 or
later) for the Water and Sewer facilities.
14) X The applicant shall complete an Application to and Agreement for Water
Service.
15) X The applicant shall pay all of the water fees as required by the Rules and
Regulations of the District.
16) X The applicant shall pay meter fees associated with the installation of radio
read meters for this project.
17) X The applicant shall comply with the Rules and Regulations of the Yorba
Linda Water District with regard to the Rendition of Water Service.
18) X The applicant shall provide the District with a set of plans stamped and
approved by the Orange County Fire Authority, or fire agency having
jurisdiction, that identifies approved fire hydrant locations. Such approved
plan must be submitted to the District before staff will initiate a District plan
check for water improvements.
Page 3 of 6
NAME OF APPLICANT: K. HOVNANIAN HOMES
LOCATION OF PROJECT: EAST OF LAKEVIEW AVE. & NORTH OF BASTANCHURY RD.
19) X The applicant shall have all water facilities designed in accordance with the
District's Water Facilities Plan and the District's Standard Specifications. All
design plans shall be prepared under the supervision of and stamped by a
Registered Civil Engineer licensed to practice in the State of California.
20) X The applicant's water facilities (on -site) shall be District owned and
maintained.
21) X The applicant shall be required to conduct flow tests at their cost in the
event the Orange County Fire Authority requires a flow test. A District
representative shall be present to witness the flow test.
22) X The applicant shall comply with all additional District requirements, relative
to the fire protection system, fire hydrant construction and fire hydrant
locations.
23) X The applicant shall install one 1 water Sampling Station(s) in conformance
with the District's Standard Plans.
24) X The applicant shall provide a completed Surety Bond for the water facilities
prior to the District signing the Water Improvement Plans. The applicant
shall also provide to the District an estimate of the construction costs of the
proposed water facilities.
25) X The applicant shall install the curb and gutters a minimum of one week prior
to the installation of the water main and services.
26) All existing water services that are not useable in the new plan shall be cut
and plugged at the main line.
27) X The applicant shall coordinate through the District all connections of new
water facilities to the existing District facilities.
28) X The applicant shall provide a written copy of the Bacteriological Report prior
to occupancy releases certifying that the water meets the Health
Department's requirements.
29) X The applicant shall adjust and raise to grade all valve covers within the
limits of this project.
30) X The applicant shall install a pressure regulator in all dwellings that have
over 80 p.s.i. static water pressure in accordance with the appropriate
building codes.
31) X The applicant shall complete a Temporary Water Permit for all water that
will be used through the new water services to serve the new dwellings.
Page 4 of 6
NAME OF APPLICANT: K. HOVNANIAN HOMES
LOCATION OF PROJECT: EAST OF LAKEVIEW AVE. & NORTH OF BASTANCHURY RD.
32) X The applicant shall install a District approved backflow device in connection
with any private fire suppression sprinkler facilities that may be required by
the Orange County Fire Authority or fire agency having jurisdiction.
33) X The applicant shall install a reduced pressure principle backflow prevention
device on all commercial buildings and landscape services.
34) X The applicant shall install and provide a written test report to the District for
each backflow device certifying that the backflow devices are operating
properly prior to the water meters being turned on for service.
35) X The applicant shall install and provide a written test report to the District
certifying that the double check detector assembly is operating properly
prior to the double check detector assembly being turned on for service.
36) X The applicant shall provide an annual written test report to the District
certifying that the backflow devices and fire detector assemblies are
operating properly pursuant to the District's Backflow Prevention Program
and the State of California Administrative Code, Title 17, Public Health
Rules and Regulations Relating to Cross - Connections.
37) The applicant shall complete a Sewer Connection Application and Permit
for Sewer Service.
38) X The applicant shall complete an Application to and Agreement for Sewer
Service.
39) X The applicant shall comply with the Rules and Regulations of the Yorba
Linda Water District with regard to the Rendition of Sanitary Sewer Service.
40) X The applicant shall pay all of the sewer fees as required by the Rules and
Regulations of the District.
41) X The applicant shall have all sewer facilities designed in accordance with the
District's Sewer Master Plan and Standard Specifications. All design plans
shall be prepared under the supervision of and stamped by a Registered
Civil Engineer licensed to practice in the State of California.
42) X The applicant shall provide a completed Surety Bond for the sewer facilities
prior to the District signing the Sewer Improvement Plans. The applicant
shall also provide to the District an estimate of the construction costs of the
proposed sewer facilities.
43) X The applicant's sewer facilities (on -site) shall be District owned and
maintained.
44) X The applicant shall construct a sewer main and appurtenances in
conformance with the approved plans and the District's Plans and
Specifications.
Page 5 of 6
NAME OF APPLICANT: K. HOVNANIAN HOMES
LOCATION OF PROJECT: EAST OF LAKEVIEW AVE. & NORTH OF BASTANCHURY RD.
45) X The applicant shall adjust and raise to grade all sewer manhole covers
within the limits of this project.
46) X The applicant shall install a sewer backflow prevention valve on all sewer
service connections in which the pad elevations of the property being
served is lower than the rim elevation of the upstream manhole. Installation
of the backflow device shall comply with all requirements of the Building
and Plumbing Codes of the appropriate agency having jurisdiction.
47) X The applicant shall submit a video inspection report of their sewer project in
DVD format. The video of the sewer facilities shall be conducted in the
presence of the District inspector, which will include stationing locations of
manholes, cleanouts, wyes, laterals, backflow devices and appurtenances.
(END OF STANDARD TERMS AND CONDITIONS)
PROJECT SPECIFIC TERMS AND CONDITIONS
48) X The applicant shall comply with all provisions of the "Water and Sewer
Facilities Phasing Agreement between Yorba Linda Water District and Shell
Western E & P, Inc.," executed on May 27, 1999, and recorded as
Document No. 19990486356 on June 30, 1999, in the Orange County
Recorder's Office. The applicant shall pay all annexation fees in
accordance with Section II, B of the Facilities Phasing Agreement.
49) X The applicant shall comply with all provisions of the Settlement Agreement
and Mutual Release executed on November 22, 2005.
50) X In addition to the Zone 4 water pipeline connection in Lakeview Avenue, the
applicant shall loop the proposed public onsite water system at "G" Street
and at the easterly end of "C" Street. The loop connections shall be made
onto the existing 8" ductile iron main located at the easterly end of Tract
17105, per approved plans and District Standards and Specifications.
I hereby certify that the foregoing Terms and Conditions were approved at the October
14, 2010 Regular Meeting of the Board of Directors of the Yorba Linda Water District.
The approved Terms and Conditions shall become void six (6) months from the approval
date if a formal Application To and Agreement with the Yorba Linda Water District for
Sewer Service is not executed for the project under consideration.
Kenneth R. Vecchiarelli, General Manager
i
r.
LOOP TO EXIST: ; n'
WATERNMAIN /
r • 1 +
f '
\�` f '
An'O
LOOP TO EX
WATER MAIN
- ---- -
EX. 36° WATER
C EX. }2" WATER
1 '1:
LAKEWEW RESERVOIR `A
�
PREPARED BY: SCALE:
PROPOSED WATER AND SEWER N. T S'
-� - YORBA LINDA WATER DISTRICT IMPROVEMENT DATE:
-- -- - - - - -- - -- -- 9717 E. MIRAL OMA AVENUE FOR TRACT 17105 0913012010 vs PLACENTIA, CALIFORNIA 92870 PLANNING AREA T FILE NAME:
�� (794) 701-3100 J-201023 -3100
Meeting Date:
To:
From:
Presented By:
Prepared By:
Subject:
SUMMARY:
AGENDA REPORT
October 14, 2010
Board of Directors
Ken Vecchiarelli, General
Manager
Budgeted
Cost Estimate:
Funding Source:
Gina Knight, Human Resources Dept:
Manager
Reviewed by Legal:
Amelia Cloonan, Personnel CEQA Compliance:
Technician
ITEM NO. 8.1
No
$5,200 /yr
All Water Funds
Administration
Yes
N/A
Application and Agreement with the California Public Employees' Retirement
System
The Board of Directors at its meeting held February 11, 2010, approved Resolution No. 10 -01
Establishing a Deemed Retirement System Pursuant to Section 218(d)(6) of the Federal Social
Security Act.
STAFF RECOMMENDATION:
That the Board of Directors approve Resolution 10 -20 Aproving the Execution of an Application and
Agreement (PERS MED -32D) with the California Public Employees' Retirement System.
COMMITTEE RECOMMENDATION:
The Personnel -Risk Management Committee discussed this matter at its meeting held January 12,
2010 and recommended that the Board of Directors approve the coverage. Completion of the PERS
application and execution of the agreement is required to complete this process.
DISCUSSION:
The District made the decision to allow the pre -April 1986 employees the opportunity to elect
Medicare -only coverage. The entire process will take up to one (1) year to complete. The Board
approved Resolution 10 -01 on February 11, 2010 authorizing staff to move forward with the
process. An election for division was held with a final filing date of September 11, 2010. Of the five
employees eligible to participate in the election, only one indicated that they did not wish to be
covered under Medicare. The election was certified, and the results were sent to CalPERS.
The next step in the process is the adoption of the Resolution by the Board of Directors authorizing
execution of the Application and Agreement for Medicare coverage for employees of the Yorba
Linda Water District. Upon receipt of the Resolution and signed copy of the Application and
Agreement, Cal PERS will request the Federal Government to include the Yorba Linda Water
District in the Health Insurance program.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors, at its meeting held January 28, 2010, approved the proposal to extend
Medicare -only coverage to five long -term employees.
ATTACHMENTS:
Name: Description:
Resolution No. 10- 20.doc Resolution No. 10 -20
CalPERS Agreement.pdf PERS Agreement
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
MB /RC 5 -0 Roll Call
RESOLUTION NO. 10 -20
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
APPROVING THE EXECUTION OF AN APPLICATION AND
AGREEMENT (PERS MED -32D) WITH THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, a division of the California Public Employees' Retirement System with
respect to eligible employees of the Yorba Linda Water District, hereinafter
referred to as "Public Agency ", who are members of and in positions
covered by said retirement system, has been conducted in accordance
with Federal and State Laws and State regulations for the purposes of
coverage under the insurance system established by the Federal Social
Security Act and a deemed retirement system, hereinafter referred to as
Group B of the California Public Employees' Retirement System, has been
established thereby as provided in Section 218(d)(6) of the Federal Social
Security Act, composed of positions of members of such retirement
system who desire coverage under the Health Insurance system
established by the Federal Social Security Act; and
WHEREAS, the Public Agency desires to file an application with the State and to enter
into an agreement with the State to extend coverage under the said
insurance system on behalf of the Public Agency to services performed by
individuals as employees of the Public Agency as members of a coverage
group, as defined in Section 218(d)(4) of the Federal Social Security Act,
of the said Group B of the California Public Employees' Retirement
System; and
WHEREAS, official form "Application and Agreement, PERS - MED -32D" containing the
terms and conditions under which the State will effect such inclusion has
been examined by this body;
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District, that said Application and Agreement on said official form be executed on
behalf of the Public Agency and submitted to the State to provide coverage under the
California State Social Security Agreement of March 9, 1951, of all services performed
by individuals as employees of the Public Agency as members of a coverage group (as
defined in Section 218(d)(4) of the Social Security Act) of said Group B of the California
Public Employees' Retirement System, except the following:
1. All services excluded from coverage under the agreement by Section 218 of the
Social Security Act; and
2. Services excluded by option of the Applicant as indicated in Resolution No. 10 -01
adopted at a meeting of the Board of Directors the 11th day of February, 2010:
NONE
Resolution No. 10 -20 Approving the Execution of an Application and Agreement with CalPERS
Effective date of coverage of services under said agreement to be January 1, 2010; and
BE IT FURTHER RESOLVED, that Gina Knight, Human Resources Manager; PO Box
309, Yorba Linda CA 92885, is hereby authorized and directed to execute said
Application and Agreement on behalf of and as Authorized Agent of the Public Agency
and to forward same to the State for acceptance and further action; and
BE IT FURTHER RESOLVED, that authority hereafter to act as Authorized Agent, and
so to conduct all negotiations, conclude all arrangements, submit all reports; and sign all
agreements and instruments which may be necessary to carry out the letter and intent
of the aforesaid application and agreement, in conformity with all applicable Federal and
State laws, rules and regulations, is vested in the position of Human Resources
Manager.
PASSED AND ADOPTED this 14th day of October 2010, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
William R. Mills, President
Yorba Linda Water District
ATTEST:
Ken Vecchiarelli, Secretary
Yorba Linda Water District
Resolution No. 10 -20 Approving the Execution of an Application and Agreement with CalPERS
Return original and one copy to:
California Public Employees' Retirement System
Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229 -2709
This is your contract for Medicare
coverage. Please read carefully.
File State - approved copy in
permanent file
APPLICATION AND AGREEMENT
For the purposes of this application and agreement, any reference made herein
to any State or Federal statute or statutes, or regulations, or part thereof, applies to all
amendments thereto now or hereafter made.
For the purposes of this application and agreement, "Federal System" means
Old -Age, Survivors, and Disability and Health Insurance system established by the
Federal Social Security Act, "Federal agency" means the Commissioner of Social
Security, or successor in function to such officer, "Board" means the Board of
Administration of the California Public Employees' Retirement System, acting on behalf
of the State of California.
The Yorba Linda Water District, a public agency as defined in Section 22009 of
the Government Code* hereinafter called Applicant, hereby makes application to the
Board to execute a modification to the California State Social Security Agreement
extending thereunder the "Medicare Only" coverage in conformity with Section 218(n) of
the Social Security Act; to all services performed by individuals as employees of the
Applicant in a coverage group (as defined in Section 218(d)(4) of the Social Security
Act *) of Group B, California Public Employees' Retirement System, a deemed
retirement system established by division of a retirement system pursuant to Section
218(d)(6) of the Social Security Act, composed of positions of members desiring
coverage under said insurance system, except the following:
PERS- MED -32D (6108) 1 Application and Agreement (Division)
1. Those services mandatorily excluded from said agreement by Section 218
of the Social Security Act.*
2. The following services excluded by option of the Applicant pursuant to
Resolution No. 10 -01 adopted on February 11, 2010:
NONE*
*See Attachment
In order to carry into effect the common governmental duties under such statutes
and in consideration of the mutual promises hereinafter made, the Applicant and the
Board agree as follows:
1. The Board will execute a modification to the California State Social
Security Agreement to extend thereunder the "Medicare Only" coverage
the services of employees of Applicant as hereinbefore applied for.
2. Applicant will comply promptly and completely, throughout the term of this
application and agreement, with the letter and intent of all statutes of the
State of California, and Section 218 of the Federal Social Security Act,
and applicable Federal and State regulations adopted pursuant thereto.
3. Applicant will pay as the State regulation may prescribe, amounts
equivalent to the sum of taxes (employer- employee contributions) which
would be imposed under the Federal Insurance Contributions Act if the
services of employees covered by the application and agreement
constituted employment as defined in such Act. Applicant shall keep or
cause to be kept accurate records of all remuneration for such services,
said records to be maintained as required by Federal or State regulations,
and said records shall be available for inspection or audit by the Board or
its designated representative.
PERS- MED -32D (6JO8) 2 Application and Agreement (Division)
4. Applicant will prepare and submit such wage and other reports as may be
required.
5. Applicant will pay and reimburse the State at such times as may be
determined by the State:
(a) Any sums of money that the State may be obligated to pay or forfeit
to the Federal Government by reason of any failure of the
Applicant, for any cause or reason, to pay the contributions,
penalties, or interest required by the agreement between the
Federal agency and the State at such time or in such amounts as
required by the said agreement and any State or Federal
regulations adopted pursuant thereto.
(b) In such amounts as may be determined by the State, its
proportionate share of any and all costs incurred by the State in the
administration of the Federal System as it affects the Applicant and
its employees.
(c) In such amounts as may be determined by the State, the cost of
any and all work and services relating to any division for the
purposes of coverage under the Federal System held with respect
to the coverage group for which coverage is requested herein.
(d) In such amounts as may be determined by the State, the costs of
any audits of the books and records of the Applicant made by the
State or its designated representatives pursuant to Section 22559
of the Government Code.
6. The coverage herein provided for shall be effective January 1, 2010.
PERS- MED -32D (6108) 3 Application and Agreement (Division)
7. That, subject to the aforesaid provisions and applicable law, this
application and agreement may be amended by the mutual consent of the
parties in writing.
8. After the filing of this application and agreement, its acceptance and
execution by the State shall constitute it a binding agreement between the
Applicant and the State of California with respect to the matters herein set
forth.
ACCEPTED:
YORBA LINDA WATER DISTRICT
Signed by
Authorized Agent
And by
(Witness)
(Title)
(Date)
STATE OF CALIFORNIA
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
Marion Montez, Assistant Division Chief
Employer Services Division
PERS- MED -32D (6108) 4 Application and Agreement (Division)
ATTACHMENT
Section 220019, Government Code:
"Public Agency" means the State, any city, county, city and county, district„ municipal or
public corporation or any instrumentality thereof, or boards and committees established
under Chapter 10 of Division 6 of the Agricultural Code, Chapter 754 of Statutes of
1933, as amended, or Chapter 367 of the Statutes of 1935, as amended, the
employees of which constitute one or more coverage groups or retirement system
coverage groups.
Section 218(d)(4):
For the purposes of subsection (c) of this section, the following employees shall
be deemed to be a separate coverage group:
(A) all employees in positions which were covered by the same retirement
system on the date the agreement was made applicable to such system
(other than employees to whose services the agreement already applied
on such date);
(B) all employees in positions which became covered by such system at any
time after such date; and
(C) all employees in positions which were covered by such system at any time
before such date and to whose services the insurance system established
by this title has not been extended before such date because the
positions were covered by such retirement system - including employees
to whose services the agreement was not applicable on such date
because such services were excluded pursuant to subsection (c)(3)(B).
The following services are mandatorily excluded:
(a) service performed in a policeman's or fireman's position, covered by a
retirement system at the time coverage is extended to the Public Agency;
(b) service performed by an individual who is employed to relieve him from
unemployment;
(c) service performed in a hospital, home, or other institution by a patient or
inmate thereof;
(d) covered transportation service (as defined in Section 21 O(k) of the Social
Security Act, as amended);
PERS- MED -32D (610$) 5 Application and Agreement (Division)
(e) service (other than agricultural labor or service performed by a student)
which is excluded from employment by any provision of Section 21 O(a) of
the Social Security Act, other than paragraph 7 of such section, or service
the remuneration for which is excluded from wages by paragraph (2) of
Section 209(h);
(f) service performed by an individual as an employee on a temporary basis
in case of fire, storm, snow, earthquake, or similar emergency;
(g) services performed by election officials or election workers for each
calendar year in which the remuneration paid for such service is less than
the threshold amount mandated by law. (The threshold amount as of
January 1, 2009 was $1,600.)
PERS- MED -32D (6108) 6 Application and Agreement (Division)
Meeting Date:
To:
From:
Presented By:
Prepared By:
Subject
SUMMARY:
AGENDA REPORT
October 14, 2010
Personnel -Risk Management
Committee
Ken Vecchiarelli, General
Manager
Budgeted
Funding Source:
Gina Knight, Human Resources Dept:
Manager
Reviewed by Legal:
ITEM NO. 8.2
Yes
All Funds
Human
Resources /Risk
Management
N/A
Gina Knight, Human Resources CEQA Compliance: N/A
Manager
Authorized and Budgeted Positions for the Remainder of FY 2010/2011
The purpose of this report is for the Board to review and consider a proposed revision to the
authorized positions for FY 2010/2011. The revision proposes a change in title for one existing
budgeted and filled position with no compensation change recommended. The change does not
authorize any additional budgeted positions for the remainder of the fiscal year.
STAFF RECOMMENDATION:
That the Board of Directors approve Resolution No. 10 -21 Revising the Authorized and Budgeted
Positions for the Remainder of Fiscal Year 2010/11 and Rescinding Resolution No. 10 -17.
COMMITTEE RECOMMENDATION:
The Personnel -Risk Management Committee will discuss this item at its meeting being held
October 12, 2010. Staff will report the Committee's recommendation at the Board meeting.
DISCUSSION:
As part of the District's annual budget process, the Board of Directors approve the number of
authorized positions for each fiscal year. During this last budget process the Human Resources
Manager received a request to conduct a job duties /classification assessment and title review, to
determine if a change and /or salary adjustment was warranted. Staff completed the job assessment
and met several times with the employee's supervisor, department head and bargaining unit
representative, in order to reach an agreement on a proposed title change with no salary
adjustment. This process exceeded the time necessary to include the recommended title change
with Resolution 10 -17, which was adopted by the Board on June 24, approving the authorized
positions for FY 2010/2011.
The issue regarding the title change has been resolved. The Human Resources /Risk Manager is
proposing that the job title for the Meter Services Representative position be changed to the Meter
Services Lead.
The attached Proposed Authorized Positions Revision Report for FY 2010/2011 identifies the title
change with a proposed effective date of November 1, 2010.
ATTACHMENTS:
Name:
Resolution No. 10- 21.doc
Reso 10 -21 Exhibit A.pdf
Exhibit A.pdf
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
RC /PH 5 -0 Roll Call
Description:
Type:
Resolution No. 10 -21
Resolution
Exhibit A
Exhibit
Exhibit A (Corrected)
Exhibit
RESOLUTION NO. 10 -21
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
REVISING THE AUTHORIZED AND BUDGETED
POSITIONS FOR THE REMAINDER OF FISCAL YEAR 2010/11
AND RESCINDING RESOLUTION NO. 10 -17
WHEREAS, the Board of Directors of the Yorba Linda Water District adopted
Resolution No. 10 -09, Adopting Personnel Rules for the Yorba Linda
Water District, on May 27, 2010; and
WHEREAS, the "Personnel Rules" direct that the number of Authorized Positions and
Salary Ranges are subject to approval by the Board of Directors; and
WHEREAS, the Board of Directors adopted Resolution No. 10 -17 on June 24, 2010
approving the Authorized and Budgeted Positions for Fiscal Year 2010/11;
and
WHEREAS, it is the desire of the Board of Directors to revise the Authorized and
Budgeted Positions for the remainder of Fiscal Year 2010/11, and rescind
Resolution No. 10 -17.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. The number of authorized and budgeted positions as set forth in Exhibit
"A" attached hereto is approved and adopted for the remainder of Fiscal
Year 2010/11 effective November 1, 2010.
Section 2. The General Manager is hereby authorized to employ up to the number of
employees authorized, budgeted and funded in each fiscal year without
further approval of the Board of Directors.
Section 3. The General Manager is hereby authorized to fill an authorized and
budgeted position that is vacated while this Resolution is active with a new
employee at a lower or equal classification. The General Manager is
further authorized to fill an authorized and budgeted position with a part -
time employee or contract staff.
Section 4. That Resolution No. 10 -17 is hereby rescinded effective November 1,
2010.
Resolution No. 10 -21 Approving Authorized Positions for FY 2010/11
PASSED AND ADOPTED this 14th day of October 2010, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
William R. Mills, President
Yorba Linda Water District
ATTEST:
Ken Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
McCormick, Kidman and Behrens
Resolution No. 10 -21 Approving Authorized Positions for FY 2010/11
Exhibit "A"
Resolution No. 10 -21
Authorized and Budgeted
Positions for FY 2010/2011
Effective November 1, 2010
Authorized
Budgeted
Change to
Authorized
Budgeted
Salary
as of
as of
Auth.
as of
as of
Range
Position Classification
7/1/2010
7/1/2010
Positions
10/14/2010
10/14/2010
1 -11
(Temporary Help)
0
0
0
0
15
Customer Service Rep 1
1
1
1
1
16
Meter Reader 1
2
2
2
2
17
Customer Service Rep 11
1
1
1
1
Accounting Assistant 1
1
1
1
1
Maintenance Worker 1
8
8
8
8
Mechanic 1
0
0
0
0
Engineering Secretary
1
1
1
1
Operations Secretary
0
0
0
0
18
Meter Reader 11
2
2
2
2
19
Customer Service Rep 111
2
2
2
2
Storekeeper
1
1
1
1
Operations Assistant
1
1
1
1
20
Engineering Technician 1
0
0
0
0
Water Quality Technician 1
0
0
0
0
Maintenance Dist. Operator 11
8
7
8
7
21
Facilities Maintenance
1
1
1
1
Accounting Assistant 11
2
1
2
1
Mechanic 11
1
1
1
1
22
Water Quality Technician 11
1
1
1
1
Information Systems Tech 1
1
1
1
1
23
Maintenance Dist. Operator 111
5
4
5
4
Meter Services Representative
1
1
-1
0
0
Meter Services Lead
0
0
1
1
1
Personnel Technician
1
1
1
1
Plant Operator 11
4
3
4
3
Mechanic I11
1
1
1
1
24
Construction Inspector
1
1
1
1
Engineering Technician 11
3
3
3
3
Information Systems Tech 11
1
1
1
1
GIS Technician
1
0.5
1
0.5
25
Executive Secretary
1
1
1
1
Human Resources Analyst
1
1
1
1
Sr. Accountant
1
1
1
1
Instrumentation Technician
1
1
1
1
Assistant Administrator 1
0
0
0
0
26
GIS Administrator
1
1
1
1
Project Engineer
2
2
2
2
Sr. Maintenance Dist. Operator
4
4
4
4
Sr. Plant Operator
1
1
1
1
Sr. Construction Inspector
1
1
1
1
Sr. Fleet Mechanic
1
1
1
1
27
Customer Service Supervisor
1
1
1
1
During FY 2010/2011 the District will promote three (3) Maintenance Worker I positions that are currently
underfilling three (3) Maintenance Distribution Operator II positions.
During the FY 2010/2011 Budget the GIS Technician will be reclassified to the GIS Administrator position.
GIS Tech proposed as a part -time position in FY 2010/11.
** Sr. Project Manager is currently a three year limited -term position.
Authorized
Budgeted
Change to
Authorized
Budgeted
Salary
as of
as of
Auth.
as of
as of
Range
Position Classification
7/1/2010
7/1/2010
Positions
10/14/2010
10/14/2010
28
Management Analyst
1
1
1
1
29
Water Quality Engineer
1
1
1
1
Safety and Training Officer
0
0
0
0
Sr. Project Engineer
0
0
0
0
30
Water Maint. Superintendent
1
1
1
1
SCADA Administrator
1
1
1
1
Public Information Specialist
1
1
1
1
IS Administrator
1
1
1
1
31
Chief Plant Operator
1
1
1
1
34
Sr. Project Manager
1
1
1
1 —
36
Human Resources Manager
1
1
1
1
37
Finance Director
1
1
1
1
Operations Manager
1
1
1
1
Information Technology Director
1
0
1
0
Engineering Manager
1
1
1
1
40
AGM /IT Director
1
1
1
1
Salary
General Manager
1
1
1
1
Set by
Board
Total
40442
40436.5
0
40547
40541.5
During FY 2010/2011 the District will promote three (3) Maintenance Worker I positions that are currently
underfilling three (3) Maintenance Distribution Operator II positions.
During the FY 2010/2011 Budget the GIS Technician will be reclassified to the GIS Administrator position.
GIS Tech proposed as a part -time position in FY 2010/11.
** Sr. Project Manager is currently a three year limited -term position.
CORRECTED
Exhibit "A"
Resolution No. 10 -21
Authorized and Budgeted
Positions for FY 2010/2011
Effective November 1, 2010
Authorized
Budgeted
Change to
Authorized
Budgeted
Salary
as of
as of
Auth.
as of
as of
Range
Position Classification
7/1/2010
7/1/2010
Positions
10/14/2010
10/14/2010
1 -11
(Temporary Help)
0
0
0
0
15
Customer Service Rep 1
1
1
1
1
16
Meter Reader 1
2
2
2
2
17
Customer Service Rep 11
1
1
1
1
Accounting Assistant 1
1
1
1
1
Maintenance Worker 1
8
8
8
8
Mechanic 1
0
0
0
0
Engineering Secretary
1
1
1
1
Operations Secretary
0
0
0
0
18
Meter Reader 11
2
2
2
2
19
Customer Service Rep 111
2
2
2
2
Storekeeper
1
1
1
1
Operations Assistant
1
1
1
1
20
Engineering Technician 1
0
0
0
0
Water Quality Technician 1
0
0
0
0
Maintenance Dist. Operator 11
8
7
8
7
21
Facilities Maintenance
1
1
1
1
Accounting Assistant 11
2
1
2
1
Mechanic 11
1
1
1
1
22
Water Quality Technician 11
1
1
1
1
Information Systems Tech 1
1
1
1
1
23
Maintenance Dist. Operator 111
5
4
5
4
Meter Services Representative
1
1
-1
0
0
Meter Services Lead
0
0
1
1
1
Personnel Technician
1
1
1
1
Plant Operator 11
4
3
4
3
Mechanic 111
1
1
1
1
24
Construction Inspector
1
1
1
1
Engineering Technician 11
3
3
3
3
Information Systems Tech 11
1
1
1
1
GIS Technician
1
0.5
1
0.5
25
Executive Secretary
1
1
1
1
Human Resources Analyst
1
1
1
1
Sr. Accountant
1
1
1
1
Instrumentation Technician
1
1
1
1
Assistant Administrator 1
0
0
0
0
26
GIS Administrator
1
1
1
1
Project Engineer
2
2
2
2
Sr. Maintenance Dist. Operator
4
4
4
4
Sr. Plant Operator
1
1
1
1
Sr. Construction Inspector
1
1
1
1
Sr. Fleet Mechanic
1
1
1
1
27
Customer Service Supervisor
1
1
1
1
Salary
Budgeted
Range
Position Classification
28
Management Analyst
29
Water Quality Engineer
as of
Safety and Training Officer
7/1/2010
Sr. Project Engineer
30
Water Maint. Superintendent
10/14/2010
SCADA Administrator
1
Public Information Specialist
1
IS Administrator
31
Chief Plant Operator
34
Sr. Project Manager
36
Human Resources Manager
37
Finance Director
0
Operations Manager
0
Information Technology Director
Engineering Manager
40
AGM /IT Director
Salary General Manager
Set by
Board Total
CORRECTED
Authorized
Budgeted
Change to
Authorized
Budgeted
as of
as of
Auth.
as of
as of
7/1/2010
7/1/2010
Positions
10/14/2010
10/14/2010
1
1
1
1
1
1
1
1
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
1
0
1
1
1
1
1
1
1
1
1
1
1
1
82
76.5
0
82
76.5
During FY 2010/2011 the District will promote three (3) Maintenance Worker I positions that are currently
underfilling three (3) Maintenance Distribution Operator 11 positions.
During the FY 2010/2011 Budget the GIS Technician will be reclassified to the GIS Administrator position.
GIS Tech proposed as a part -time position in FY 2010/11.
** Sr. Project Manager is currently a three year limited -term position.
Meeting Date:
To:
From:
Presented By:
Prepared By:
AGENDA REPORT
October 14, 2010
Board of Directors
Ken Vecchiarelli, General
Manager
Budgeted:
Funding Source:
Stephen Parker, Finance Director Dept:
Reviewed by Legal:
Stephen Parker, Finance Director CEQA Compliance:
Subject: Audit Reports for Fiscal Year 2009/10
ITEM NO. 8.3
N/A
N/A
Finance
N/A
N/A
STAFF RECOMMENDATION:
That the Board of Directors receive and file the FY 2009/10 Comprehensive Annual Financial Report,
the Report on Internal Control and the Communication To Those In Governance Letter.
COMMITTEE RECOMMENDATION:
The Finance - Accounting Committee will discuss this item at its meeting on October 11, 2010 and report
on its recommendation at the Board meeting.
DISCUSSION:
Staff is pleased to present the Board of Directors with Yorba Linda Water District's first Comprehensive
Annual Financial Report, which will be submitted for recognition and consideration for an award from the
Government Finance Officers Association (GFOA).
Diehl Evans & Company, LLP, the District's external auditors, have completed their audit of the Yorba
Linda Water District for the fiscal year ending June 30, 2010, and have rendered an unqualified (clean)
opinion in the attached Comprehensive Annual Financial Report. They also identified no internal control
findings that rose to the level of a significant deficiency as documented in the attached Report on
Internal Control. Lastly, they have reported required disclosures to the Finance - Accounting Committee
in the Communication To Those In Governance.
ATTACHMENTS:
Name
6.30.10_CAFR.pdf
6.30.10_ Report_ on Internal_Control.pdf
6.30.10_ Communication_ To Those In Governance.pdf
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
JS /RC 5 -0
Description:
FY 09/10 Comprehensive Annual Financial Report
FY 09/10 Report on Internal Control
FY 09/10 Communication to Those In Governance
Type:
Backup Material
Backup Material
Backup Material
YORBA LINDA WATER DISTRICT
of Yorba Linda, California
Comprehensive Annual Financial Report
WITH REPORT ON AUDIT BY
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
FOR THE YEAR ENDED JUNE 30, 2010
Prepared by:
The Yorba Linda Water District Finance Department
Stephen Parker, CPA - Finance Director
Delia Lugo, Senior Accountant
JoAnn Gitmed, Accounting Assistant II
tIM
Cindy Botts, Management Analyst
YORBA LINDA WATER DISTRICT
TABLE OF CONTENTS
For the year ended June 30, 2010
Page
Number
INTRODUCTORY SECTION:
Letter of Transmittal
i
Board of Directors and Executive Staff
xiii
Organization Chart
xiv
District Boundaries
xv
FINANCIAL SECTION:
Independent Auditors' Report
1
Management's Discussion and Analysis
(Required Supplementary Information)
3
Basic Financial Statements:
11
Combined Statements of Net Assets
12
Combined Statements of Revenues, Expenses
and Changes in Net Assets
14
Combined Statements of Cash Flows
15
Notes to Basic Financial Statements
17
Required Supplementary Information:
43
Other Post - Employment Benefit Plan - Schedule
of Funding Progress
44
Supplementary Information:
45
Combining Schedule of Net Assets
46
Combining Schedule of Revenues, Expenses and
Changes in Net Assets
48
Combining Schedule of Cash Flows
49
Schedule of Operating Expenses by Cost Center and
Nature of Expenses for Water and Sewer
51
Schedule of Capital Assets
52
YORBA LINDA WATER DISTRICT
TABLE OF CONTENTS
(CONTINUED)
For the year ended June 30, 2010
Page
Number
STATISTICAL SECTION: 53
Description of Statistical Section 55
Financial Trends:
Changes in Net Assets 56
Revenue Capacity:
Number of Connections 58
Ten Largest Customers 59
Debt Capacity:
Ratio of Outstanding Debt 60
Debt Coverage 61
Demographic and Economic Information:
Demographics 62
Ten Largest Employers 63
Operating Information:
Number of Employees 64
Operating and Capacity Indicators 65
INTRODUCTORY SECTION
0 Yorba Linda
Water District
September 15, 2010
Members of the Board of Directors
Yorba Linda Water District
Introduction
It is our pleasure to submit Yorba Linda Water District's Comprehensive Annual Financial
Report (CAFR) for the fiscal year ending June 30, 2010. This report was prepared pursuant to the
guidelines set forth by the Governmental Accounting Standards Board (GASB).
District staff prepared this financial report in conjunction with an unqualified "clean" opinion
issued by Diehl, Evans & Company, LLP. The independent auditor's report is located at the front
of the financial section of this report. Management's discussion and analysis (MD &A)
immediately follows the independent auditor's report and provides a narrative introduction,
overview and analysis of the basic financial statements. MD &A complements this letter of
transmittal and should be read in conjunction with it.
This report consists of management's representations concerning the finances of Yorba Linda
Water District. Consequently, management assumes full responsibility for the completeness and
reliability of the information presented in this report. To provide a reasonable basis for making
these representations, management of the District has established a comprehensive internal
control framework that is designed both to protect the District's assets from loss, theft or misuse,
and to compile sufficient reliable information for the preparation of the District's financial
statements in conformity with generally accepted accounting principles (GAAP). Because the
cost of internal control should not outweigh their benefits, the District comprehensive framework
of internal controls has been designed to provide reasonable rather than absolute assurance that
the financial statements will be free from material misstatement. As management, we assert that,
to the best of our knowledge and belief this financial report is complete and reliable in all
material aspects.
This report is organized into three sections: (1) Introductory (2) Financial and (3) Statistical. The
Introductory section offers general information about the District's organization and current
District activities along with reports on a summary of significant financial results. The Financial
section includes the Independent Auditors' Report, Management's Discussion and Analysis of
the District's basic financial statements, and the District's audited basic financial statements with
accompanying Notes. The Statistical section includes a ten -year history of financial trends,
revenue and debt capacity, demographic and other operating information in table and graphical
format.
District Structure and Leadership
The Yorba Linda Water District is an independent special district, which operates under the
authority of Division 12 of the California Water Code. The Yorba Linda Water District has been
providing water and sewer services to the residents of the City of Yorba Linda, portions of
Placentia, Brea, Anaheim, and nearby unincorporated areas since 1959, the year it was formed to
take over the assets and water service responsibilities of the Yorba Linda Water Company, a
mutual formed in 1909. The District is governed by a five- member Board of Directors, elected at
large from within the District's service area. The General Manager administers the day -to -day
operations of the District in accordance with policies and procedures established by the Board of
Directors. The Yorba Linda Water District employs a full -time staff of 76 employees. The
District's Board of Directors meets on the second and fourth Thursday of each month. Meetings
are publicly noticed and citizens are encouraged to attend.
The District provides water, sewer or a combination of both services to residents and businesses
within its service area, which includes approximately 14,475 acres of land comprising 22.6
square miles. The District serves a population of approximately 75,000 and currently provides
water service through approximately 23,850 residential, commercial, and light industrial
connections.
District Services
Residential customers make up approximately 92% of the District's customer base and consume
approximately 72% of the water provided annually by the District. The District obtains about
half of its water supply from the Metropolitan Water District (MWD) through the Municipal
Water District of Orange County (MWDOC) and the other half from groundwater wells within
the area. In 2009 and 2010, the District provided 23,417 acre -feet and 20,162 acre -feet of water
to customers, respectively.
The District's service area is known for having larger than average residential lots and more than
30 horse trails of more than 100 miles of aggregate length. In 2005, CNN ranked the City of
Yorba Linda as 21" among the best places in the United States to live. Similarly, in an article by
CNN Money, the City of Yorba Linda was listed as one of the most affluent cities in the United
States, as well as the highest median income in Orange County, as reported by 2000 Census data,
based on towns between 65,000 and 250,000 in population.
Economic Condition and Outlook
The District's administrative offices are located in the City of Placentia in Orange County. The
economic outlook for the area is one of very slow growth, which is projected to continue through
2011 because of the ongoing financial crisis and the somewhat distressed housing market.
ii
California's water supply continues to be a concern due to projected population increases and
drought conditions. This concern has increased focus on the need for conservation as well as
more efficient irrigation methods and systems. Within the District's boundaries, population
growth is expected to increase only minimally in the next 5 -10 years, as more than 50% of the
current households have children under the age of 18 who are not expected to add to this growth
via newborns. Additionally, the District's area is primarily "built out ", and an influx of residents
from outside the area is expected to remain fairly low. The State of California, however, is
expected to grow by 20 million people over the next 40 years.
In June 2008, the Governor responded to severe cuts in water allocation by declaring a statewide
drought, which directed his state agencies and departments, including the California Department
of Water Resources, to take immediate action to address the serious drought conditions and
water delivery reductions that exist in California. Additionally, as part of this declaration, he
instituted the "20 by 2020" initiation, which requires agencies to reduce their usage by twenty
percent by the year 2020.
Simultaneously with the rising cost of import water, the District is also limited with the amount
of water it is able to provide to customers without paying significant penalties. In essence, a
water allocation has been placed on the District by MWDOC, which amounts to a reduction of
water usage of 10% below the District's average water use for calendar years 2004 -2006.
Failure to remain within this allocation results in substantial penalties. While allocations were
anticipated, the District implemented a conservation ordinance effective July 1, 2009 placing
restrictions and curtailing excessive water use.
As of the end of the fiscal year 2009/10, the ordinance has proven to be successful with District
customers reducing water usage by an overwhelming 18 %. With this trend, the District is
optimistic water usage will remain within allocation, penalties will be avoided and the District's
will reach the State's "20 by 2020" mandate.
Table 1- Historical Water Use
Gallon s
Fiscal % Change
Con m
sued
Year (Acre -ft) (from prev. yr)
2004/05
21,611.5
2005/06
23,032.9 6%
2006/07
25,656.5 100/0
2007/08
19,843.3 -29%
2008/09
23,416.8 150/0
iii
Water Conservation Programs
The District has implemented conservation management practices since the late 1980's. District
staff participates in community events and distributes informational materials to encourage water
conservation. Through a partnership program with MWDOC, the District offers the following
conservation programs offering rebates for purchase and installation of:
Weather -based Irrigation Landscape Controllers
Rotating Irrigation Nozzles
High Efficiency Clothes Washers
In addition to these programs, the District also implemented a Water Conservation Ordinance on
July 1, 2009. The ordinance focuses on water use efficiency through the prohibition of wasteful
practices and the establishment of water conservation stages. During fiscal year 2009/10, the
District remained at a Stage 2: Moderate Water Shortage Condition, in sync with MWD's water
shortage stage.
Water Conservation Stages
.N.._.
Stage 1 Minimum Water Shortage
Reduce usage by 10%
ModerateWater Shortage
II Stage 2 Reduce usage by 10% - 20%
Stage 3 Severe Water Shortage
Reduce usage by 20 -35%
Cri 'cal Water Shortage
e usage more than
Mission /Vision Statement and Maior Initiatives
The activities of the Board and staff of the District are driven by its Mission Statement: "To
provide reliable, high quality water and sewer services in an environmentally responsible manner
at the most economical cost to our customers ", and its Vision Statement: "Yorba Linda Water
District will become the premier self - sufficient source for reliable water, sewer and related
services in the communities it serves." The Mission and Vision Statements dictate the following
six major initiatives of the District.
1. To supply clean, wholesome water to the community and provide water for the future.
2. To plan, construct, operate, maintain and upgrade the water system facilities to reliably
serve customer needs.
3. To utilize the District's financial resources in an effective and prudent manner.
4. To provide high quality customer service for District customers.
5. To inform, educate, and communicate with the community on District and water issues
including conservation awareness.
6. To review and maintain a plan to be proactive in preventative maintenance of the
District's water and sewer systems.
IV
Major Accomplishments durin14 FY 2009/10
In FY 2009/10, the Board of Directors approved a Five -Year Capital Improvement Program for
2009 to 2014 with a combined total of $44.4M. Of that amount, an estimated $18.2M was
budgeted for FY 2009/10 for projects in planning, design and construction. Those projects
included the following:
Highland Reservoir
The new $11.2M Highland Reservoir, in use as of July 2010, provides six million gallons of
potable water storage and is expected to be fully completed by September 2010. The buried,
reinforced concrete reservoir serves the most southerly part of the District and is designed with
provisions for expansion to nine million gallons. The new reservoir, considered to be the hub of
water storage for the District's groundwater transmission facilities, replaced the Highland
Reservoir, originally constructed in 1911.
(Highland Reservoir in construction)
Zone Reconfiguration Project
Approximately 800 homes located within the District's Pressure Zone 3A were observed to have
low water pressures during certain times of the year. The condition occurred in periods of high
water demands within three locations of the service area. This $1.1M pipeline project separated
and created a new zone for those homes with higher water pressure throughout the year. The
project included the installation of approximately 8,500 feet of new pipeline and various valves.
This project was completed in November 2009.
San Antonio Pressure Regulating Station Upgrade Project
Located on San Antonio Road, this $250,000 upgrade project consisted of replacing outdated
pressure regulating valves, piping and controls. This underground facility will regulate pressure
and flow to the new service subarea created by the Zone Reconfiguration Project. The vault has
also been improved with better access, lighting, ventilation, remote controls and telemetry. This
project was completed in October 2009.
v
Hidden Hills Reservoir Project
Located at the top of Hidden Hills Road, this $7M project will provide more efficient operation
in the District's highest pressure zones within the Hidden Hills area. The project includes
construction of a two million gallon buried concrete reservoir and improvements to the Santiago
Booster Pump Station. It is currently in use and will be fully completed by September 2010.
(Lakeview Reservoir in Construction)
Lakeview Sewer Lift Station Replacement
The District's only sewer lift station is located within the County of Orange Flood Control area
known as the Yorba Linda Lakebed and "lifts" the wastewater collected up to an area where it
can be incorporated along with other District wastewater flows and ultimately drain, via gravity
flow, into the Orange County Sanitation District (OCSD) sewer pipelines. The sewer lift station
was fully retrofitted at a cost of $200,000 with new larger pumps, a new control system and an
upgraded electrical supply. Construction was completed in November 2009.
Highland Booster Pump Station Replacement
The Highland Booster Pump Station Replacement project allows the District to reliably pump up
to 18,000 gallons per minute of water from the adjacent 6 million gallon Highland Reservoir to
customers in the largest pressure zone served by the District and up to the Lakeview Reservoir.
A feasibility study was completed in early 2009 and the project design plans were completed in
June 2010. Construction of the $7M project is scheduled to start in October 2010 with
completion in late 2011.
vi
Solar Panel Pilot Program
The District installed a photovoltaic solar panel system on the roof of its administration building
in April 2010. This system will convert DC electric current from the solar panels to AC electrical
power and ultimately reduce the building's electricity bills by approximately twenty percent,
reduce atmospheric emissions and serve as a test site for future renewable energy solutions at
other District facilities. The solar panels will generate approximately 31,500 watts of power
annually, which equates to about 20% of the District's usage at the new headquarters.
District Well Projects
The District's water demand is approximately 22,000 to 24,000 acre -feet per year. Of that total,
approximately half is pumped from the groundwater basin and the remainder is imported water
purchased through MWDOC. The cost of groundwater, including the cost of pumping, is about
half the cost of imported water. As such, the District is working to ensure it can pump its full
allotment of groundwater. To do so, it must fully utilize its existing wells, optimize their
capacity, and construct new wells when necessary. In this regard, the CIP includes various well
projects, including the following:
Wells 1, 5 and 12 Upgrade Project
The District refurbished Wells 1, 5 and 12 located close to District headquarters. These
wells have a combined capacity of approximately 5,000 gallons per minute. These wells
were originally drilled between 1934 and 1950 and were refurbished to increase capacity
and service life. Refurbishment results in continued groundwater production, enabling the
District to reduce the use of more expensive imported water.
Well 20 Project
This project includes construction of a new groundwater production well near existing
Well 11, located at the southerly end of Richfield Road. Well 11 was drilled in 1934 and
was relined in the 1990's, but has recently become less productive due to age and wear.
Well 20, at a cost of approximately $2M, will provide an estimated 2,000 gallons per
minute of groundwater production. It will improve the District's capability to produce its
full allotment of groundwater in place of the more expensive imported water.
Construction should be completed by September 2011.
West Wellfield Project
Initial work has commenced on potential locations and feasibility of a proposed West
Wellfield Project. The project concept consists of three to four groundwater wells located
westerly of the District's service area in Anaheim, CA. Information available from
Orange County Water District indicates that the groundwater basin and aquifer is deeper
and more productive further west than the District's current well locations. Consultants
have been retained to evaluate water quality and quantity in the area, and to identify
potential well sites, south of Mira Loma Avenue and west of Tustin Avenue. The
combined capacity of these new wells may yield 6,000 to 8,000 gallons per minute. This
new groundwater production will enable the District to reduce dependence on some of its
older wells and to improve its overall groundwater production in place of more expensive
imported water. This project may take three or four years to implement at a cost of
approximately $9M.
vii
Additional major accomplishments in FY 2009/10 include:
Asset Management Master Plan
The District completed an Asset Management Plan (AMP) in May 2010. The plan identifies all
of the District's capital assets, the current condition of each, the risk profiles, and the long -term
rehabilitation and replacement (R &R) funding requirements. A proposed funding policy to
maintain the District's assets on an ongoing basis, based on the AMP recommendation was
approved by the District Board of Directors in July 2010.
Technological Advancements
From FY 2008/09 to the present, the District has continued to implement a series of
technological improvements including hardware and software system integrations. By ensuring
that the District remains current with technology improvements, efficiency gains have been
achieved, which include centralizing key information, reducing or eliminating inefficient,
redundant manual processes, and updating software to industry standards.
One of the largest advancements is the implementation of a new financial software package,
which will allow for a streamlined, computerized and centralized approach to the general ledger,
accounts payable, inventory, purchase orders, payroll, project accounting, bank reconciliation
and budgeting processes. A new and advanced Utility Billing software system has also been
implemented, with access to customer history and consumption information, which also offers
improved integration with online bill pay, backflow device maintenance and tracking, and
integration with the District's Geographical Information System (GIS).
Reserve Policy
Adoption of a financial reserves policy is a critical component of responsible public governance.
The District's reserve policy establishes written goals and objectives and provides guidelines for
managing funding and use of the District's financial reserves. Together with the recent Asset
Management Plan (AMP), the preparation of a cost of service and alternative rate structure study,
and the development of a five year financial plan; the reserves policy is an important pillar in the
overall financial planning process. A formal reserve policy also demonstrates to the public and
the District's stakeholders that the District continues to manage its current and future financial
obligations in a prudent and fiscally responsible manner.
Risk Management
The District is a member of the Association of California Water Agencies Joint Power Insurance
Authority (JPIA). The purpose of the JPIA is to arrange and administer programs of insurance
for the pooling of self - insured losses and to purchase excess insurance coverage. Additionally,
the District has assigned responsible charge of risk management activities within the Human
Resources Department and has reactivated a Safety Committee of employees from different
departments to better focus on internal safety measures, reinforce safety training and to decrease
risk both within and outside the District.
viii
Future Years
Amidst the national economic turmoil and the California state budget crisis, our region continues
to face water supply issues due to extended drought seasons, as well as judicial, environmental
and regulatory restriction. First and foremost, we continue to monitor the State's budget shortfall
and potential shift of our property tax revenues. Secondly, with water conservation and reduced
water sales, our ability to maintain a high level of services while holding costs down, has been
seriously challenged. The slump in the real estate market in our region has also caused lower
connection fee revenues and slower increases in the projected future water demands. As a result
we have adjusted our ten year capital improvement plan to reflect the anticipated slower growth
in future years.
Water Rate & Increases
In FY 2009/2010, YLWD charged a uniform commodity rate of $2.52 per unit and a monthly
fixed charge of $10.20 for all sizes of meters. One unit of water equals 748 gallons, equating one
gallon of water to approximately $0.0034 (one third of a cent). At an average of 30 units of water
per month (approximately 22,500 gallons), a typical YLWD customer would pay about $87 on
the average for their monthly water bill. YLWD also provides wastewater service to
approximately two - thirds of the District's customer base, at an additional charge of $5.50 per
month.
In FY 2010/11, Yorba Linda Water District faces many challenges related to water supply and
demand. The District's water supply is currently derived by both groundwater and import water,
approximately 50% from each source. As drought conditions have worsened, the cost of import
water has significantly increased by unprecedented amounts. With limited water available to
recharge the groundwater basin, pumping restrictions have also increased which has lowered the
amount of the cheaper groundwater we can utilize in our supply portfolio.
Both import and groundwater prices have dramatically increased over the past two fiscal years.
In January 2009, import water prices increased by 14.1% and another 19.7% in September 2009.
Effective January 1, 2011, import water costs will increase again by 7.5% and are scheduled to
increase by an additional 7.5% in January 2012. These most recent increases alone have
translated to over $2M in additional costs in FY 2009/10. As a result, the District implemented a
41% water rate increase, beginning September 14, 2009. An additional pass- through rate
adjustment resulting from the January 2011 and 2012 import water rate increases, has prompted
the District Board to approve a monthly service charge increase to $11.73, beginning
August 1, 2010.
With the intent to develop a rate structure to support conservation and equitability among
customers, the District developed a Request for Proposals to conduct a Cost of Service Analysis
and Alternative Water Rate Feasibility Study in November 2009. This study will address the
impacts of implementing a tiered water conservation rate structure and /or a budget -based water
rate structure for customers of the District. It is the District's goal for the study to be completed
and approved by the Board of Directors in December 2010, with potential for implementation
beginning July 1, 2011.
ix
Annexation Initiative
While 75% of the District's service boundary is within the territory of the Orange County Water
District (OCWD), the agency responsible for managing the groundwater basin, District Staff and
the Board will pursue annexation of the remaining 25 %. The advantage of 100% annexation is a
substantial cost savings in the water the District produces from the groundwater basin. Currently,
the OCWD groundwater basin has a pumping limitation of 62% of each agency's annual
demands, which is applicable to all Orange County water agencies that are completely annexed
within OCWD. Since only 75% the District's boundaries are within OCWD, this equates to a
47% pumping limitation. The remaining water is supplied through the more costly import water.
It is estimated that the District would reduce its water costs by over $1.OM per year if the entire
area is annexed into OCWD.
Enhanced Outreach & Communications
The District continues to enhance its communications with and presence within the community.
Within the FY 2009/10 Budget, the District has funded a newly formed position of a Public
Information Officer. This position develops additional public information and water conservation
programs with the overall goal of developing a more transparent image of the District to the
community. Additionally, it is the District's intent to develop a short -term and long -term public
information master plan.
In February 2009, the District formed a Citizens Advisory Committee to serve as ambassadors to
the community. On a monthly basis, the committee meets with District staff to discuss and
provide recommendations on various pending District issues. The committee has been actively
involved with issues such as the water rate increase, the water conservation ordinance,
continuing conservation outreach, public information, and various other matters as they arise.
The committee continues to meet and make recommendations to staff and to the Board of
Directors.
Sewer Master Plan
In FY 2009/10 the District budgeted for a Sewer Master Plan to supplement the current plan
completed in 1978. The revised plan is currently in progress and will identify existing sewer
facilities, develop and calibrate a hydraulic computer model, provide flow monitoring, identify
any existing system deficiencies, forecast deficiencies that may develop with future build out,
and provide recommendations for future improvements, repairs and replacements.
Future Technological Advancements
Future technological advancements include the incorporation of a Computerized Maintenance &
Management System (CMMS), which will automate and track all field work orders and provide
actual costs to perform work order related functions. An Automated Purchase Requisitioning
System, which would provide better workflow and approvals for purchasing items, as well has
have direct integration with the new financial software.
x
Internal Control Structure
District management is responsible for the establishment and maintenance of the internal control
structure that ensures the assets of the District are protected from loss, theft or misuse. The
internal control structure also ensures adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting principles.
The District's internal control structure is designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control
should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits
requires estimates and judgments by management.
Budgetary Control
The District Board of Directors adopts an operating and capital budget every year. The budget
authorizes and provides the basis for reporting and control of financial operations and
accountability for the District's enterprise operations and capital projects. The budget and
reporting treatment applied to the District is consistent with the accrual basis of accounting and
the financial statement basis.
Cash and Investment Management
In order of priority, the District's objectives when investing, reinvesting, purchasing, acquiring,
selling and managing public funds are as follows:
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments made by the District are undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio. To attain this objective, diversification is
required to prevent any potential loss on any individual security or depository from
exceeding the income generated from the remainder of the portfolio.
2. Liquidity: The investment portfolio will remain sufficiently liquid to enable the District to
meet all operating requirements that might be reasonably anticipated.
3. Return on Investments: The investment portfolio shall be designed with the objective of
attaining a market rate of return throughout budgetary and economic cycles, taking into
account the investment risk constraints and the cash flow characteristics of the portfolio.
Audit and Financial Reporting
State Law and Bond covenants require the District to obtain an annual audit of its financial
statements by an independent certified public accountant. The accounting firm of Diehl, Evans
& Company, LLP has conducted the audit of the District's financial statements. Their
unqualified (clean) Independent Auditor's Report appears in the Financial Section.
xi
Other References
More information is contained in the Management's Discussion and Analysis and the Notes to
the Basic Financial Statements found in the Financial Section of the report.
Acknowledtements
Preparation of this report was accomplished by the combined efforts of District staff. We
appreciate the dedicated efforts and professionalism that these staff members contribute to the
District. We would also like to thank the members of the Board of Directors and especially the
Finance - Accounting Committee members for their continued support in planning and
implementation of the Yorba Linda Water District's fiscal policies.
Respectfully submitted,
Kenneth R. Vecchiarelli
General Manager
xii
Stephen Parker
Finance Director
Yorba Linda Water District
Board of Directors and Executive Staff
William R. Mills, President Michael J. Beverage, Vice - President
John W. Summerfield
Director
Kenneth R. Vecchiarelli
General Manager
Lee Cory
Operations Manager
Phil Hawkins
Director
Pat Grady
Asst. General Manager/
IT Director
Gina Knight
Human Resources
& Risk Manager
xiii
Ric Collet
Director
Stephen Parker
Finance Director
Steven R. Conklin
Engineering Manager
Engineering
Manager
Sr. Project Engineering
Manager Secretary
Eng. Technician
Project If
Engineer
3 FTE
IIIIIIIII Sr. Accountant
' Accounting
Assistant I /II
2 FTE
■
YL
W
Finance
Director
Project
Engineer
Sr. Construction
Inspector
Construction
Inspector
RMCustomer Svc. Storekeeper
Supervisor
Customer Srv.
Rep. 1/11/111 Meter Services
Lead
4 FTE
Meter Reader
1 /11
4 FTE
Board of
Directors
General
Manager
Management
Analyst
HR & Risk
Assist. GM /IT
Director
Executive
Secretary
Operations Water Maint.
Chief Plant
G.I.S. Info. Systems S.C.A.D.A.
Water Quality
Technician Administrator Administrator
Engineer
Sr. Maintanance
.
Info. Systems
Dist. Operator Facilities
Technician 1 /11
WQ Technician
Maintenance
I
1 /11
2 PPE
I FTE
Management
Analyst
HR & Risk
Operations
Manager
Manager
HR Analyst Personnel Sr. Fleet
Operations Water Maint.
Chief Plant
Technician Mechanic
Assistant Superintendent
Operator
Mechanic
Sr. Maintanance
II /111
Dist. Operator Facilities
Sr. Plant
Maintenance
I
Operator
2 FTE
4 FTE
Maintanance Dist. Maintanance Dist. Maintanance
Plant Operator
Operator III Operator If Worker I
If
4 FTE 6 FTE Z FTE
3 FTE
CA&
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xv
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xvi
FINANCIAL SECTION
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606 -5165
(949) 399 -0600 • FAX (949) 399 -0610
www.diehlevans.com
September 15, 2010
INDEPENDENT AUDITORS' REPORT
Board of Directors
Yorba Linda Water District
Placentia, California
MICHAEL R. LUDIN, CPA
CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT CALLANAN, CPA
*PHILIP H. HOLTKAMP, CPA
*THOMAS .. \9. PERLOWSKI, CPA
*HARVEY J. SCHROEDER, CPA
KENNETH R. AMES, CPA
WILLIAM C. PENTZ, CPA
*A PROFESSIONAL CORPORATION
We have audited the basic financial statements of the Yorba Linda Water District (the District) as of
and for the year ended June 30, 2010 as listed in the table of contents. These basic financial statements
are the responsibility of the District's management. Our responsibility is to express an opinion on
these basic financial statements based on our audit. The prior year partial comparative information has
been derived from the financial statements of the District for the year ended June 30, 2009 and in our
report dated September 11, 2009, we expressed an unqualified opinion on these financial statements.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, and the State Controller's Minimum
Audit Requirements for California Special Districts. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the District's internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the basic financial statements referred to above present fairly, in all material respects,
the financial position of Yorba Linda Water District as of June 30, 2010 and the results of its changes in
financial position and cash flows for the year then ended in conformity with accounting principles
generally accepted in the United States of America, as well as the accounting systems prescribed by the
State Controller's Office and State regulations governing Special Districts.
-1-
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008 -2389 ESCONDIDO, CALIFORNIA 92025 -2598
(760) 729 -2343 • FAX (760) 729 -2234 (760) 741 -3141 • FAX (760) 741 -9890
In accordance with Government Auditing Standards, we have also issued our report dated
September 15, 2010 on our consideration of the District's internal control over financial reporting and
our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing
the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and other post- employment benefit plan - schedule of funding
progress, as identified in the accompanying table of contents, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during the audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance on them.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a
whole. The supplementary information listed in the table of contents is presented for purposes of
additional analysis and is not a required part of the basic financial statements of the District. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements of the District
or to the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is fairly
stated in all material respects in relation to the basic financial statements taken as a whole.
Our audit was conducted for the purpose of forming an opinion on the District's basic financial
statements as a whole. The Introductory Section and Statistical Section are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The Introductory
Section and Statistical Section have not been subjected to the auditing procedures applied in the audit
of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2010
The following Management's Discussion and Analysis ( "MD &A ") of activities and financial
performance of the Yorba Linda Water District ( "District ") provides an introduction to the financial
statements of the District for the fiscal year ended June 30, 2010. We encourage readers to consider the
information presented here in conjunction with the transmittal letter in the Introductory Section and
with the basic financial statements and related notes, which follow this section.
Financial Highlights
• The District's net assets increased by $5.1 million, or 3.45 %.
• During the year the District's revenues were $25.9 million, up 8.75 %, while expenses were
$27.4 million, up 0.34 %.
• Capital contributions to the District amounted to $6.7 million.
Required Financial Statements
This annual report consists of a series of financial statements. The Statement of Net Assets, Statement
of Revenues, Expenses and Changes in Net Assets and Statement of Cash Flows provide information
about the activities and performance of the District using accounting methods similar to those used by
private sector companies.
The District's statements consist of two funds; the Water Fund and the Sewer Fund. The District's
records are maintained on an enterprise basis, as it is the intent of the Board of Directors that the costs
of providing water and sewer to the customer of the District are financed primarily through user
charges.
The Statement of Net Assets includes all of the District's investments in resources (assets) and the
obligations to creditors (liabilities). It also provides the basis for computing a rate of return, evaluating
the capital structure of the District and assessing the liquidity and financial flexibility of the District.
All of the current year's revenue and expenses are accounted for in the Statement of Revenues,
Expenses and Changes in Net Assets. This statement measures the success of the District's operations
over the past year and can be used to determine if the District has successfully recovered all of its costs
through its rates and other charges. This statement can also be used to evaluate profitability and credit
worthiness. The final required financial statement is the Statement of Cash Flows, which provides
information about the District's cash receipts and cash payments during the reporting period. The
Statement of Cash Flows reports cash receipts, cash payments and net changes in cash resulting from
operations, investing, non - capital financing, and capital and related financing activities and provides
answers to such questions as where did cash come from, what was cash used for, and what was the
change in cash balance during the reporting period.
-3-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2010
Financial Analysis of the District
One of the most important questions asked about the District's finances is, "Is the District better off or
worse off as a result of this year's activities ?" The Statement of Net Assets and the Statement of
Revenues, Expenses and Changes in Net Assets report information about the District in a way that
helps answer this question. These statements include all assets and liabilities using the accrual basis of
accounting, which is similar to the accounting used by most private sector companies. All of the
current year's revenues and expenses are taken into account regardless of when the cash is received or
paid.
These two statements report the District's net assets and changes in them. You can think of the
District's net assets (the difference between assets and liabilities), as one way to measure the District's
financial health, or financial position. Over time, increases or decreases in the District's net assets are
one indicator of whether its financial health is improving or deteriorating. However, one will need to
consider other non - financial factors such as changes in economic conditions, population growth,
zoning and new or changed government legislation, such as changes in Federal and State water quality
standards.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the basic financial statements. The notes to the basic financial statements can be found on pages 18
through 42.
Statement of Net Assets
Assets:
Current unrestricted assets
Current restricted assets
Other assets
Capital assets, net
Total Assets
Liabilities:
Condensed Statements of Net Assets
Liabilities payable fromunrestricted current assets
Liabilities payable fromrestricted assets
Non - current liabilities
Total liabilities
Net Assets:
Invested in capital assets, net of related debt
Restricted
Unrestricted
2010
2009
Change
$ 13,259,954 $
15,461,086
$ (2,201,132)
26,908,949
36,076,326
(9,167,377)
785,655
815,581
(29,926)
180,322,149
164, 911,787
15,410,362
221,276,707
217,264,780
4,011,927
7,038,086
7,208,558
(170,472)
1,346,440
1,324,195
22,245
58,324,858
59,312,717
(987,859)
66,709,384
67,845,470
(1,136,086)
146,877,122
141,514,024
5,363,098
15,797,432
14, 063,802
1,733,630
(8,107,231)
(6,158,513)
(1,948,718)
Total Net Assets $ 154,567,323 $ 149,419,313 $ 5,148,010
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2010
Statement of Net Assets (Continued)
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the District, assets of the District exceeded liabilities by $154.6 million and
$149.4 million as of June 30, 2010 and 2009, respectively.
By far the largest portion of the District's net assets (95% and 95% as of June 30, 2010 and 2009,
respectively) reflects the District's investment in capital assets (net of accumulated depreciation) less
any related debt used to acquire those assets that is still outstanding. The District uses these capital
assets to provide services to customers within the District's service area; consequently, these assets are
not available for future spending.
For the year ended June 30, 2010, the District showed a negative balance in its unrestricted net assets
of $8.1 million, which indicates that there aren't any reserves to be utilized in future years, as was the
same with the negative balance of $6.2 million for the year ended June 30, 2009.
-5-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2010
Statement of Revenues, Expenses and Changes in Net Assets
Revenues
Operating revenues:
Water sales
Sewer revenue
Other operating revenue
Total operating revenues
Non -operating revenues:
Investment income
Property taxes
Other non- operating income
Total non - operating revenues
Total revenues
Expenses
Operating expenses:
Variable water costs
Personnel services
Supplies and services
Depreciation
Total operating expenses
Non -operating expenses:
Interest expense
Other non-operating expense
Total non - operating expenses
Total expenses
Net income (loss) before capital
contributions
Capital contributions
Change in net assets
Net assets, beginning of year
Net assets, end of year
2010 2009 Change
$ 22,141,731 $ 19,626,738 $ 2,514,993
1,275,979
1,259,723
16,256
571,903
439,302
132,601
23,989,613
21,325,763
2,663,850
268,424
689,108
(420,684)
1,269,441
1,283,521
(14,080)
331,227
479,911
(148,684)
1,869,092
2,452,540
(583,448)
25,858,705
23,778,303
2,080,402
10,688,318
10,859,328
(171,010)
6,677,757
6,498,959
178,798
3,576,147
4,151,058
(574,911)
5,153,891
4,167,958
985,933
26,096,113
25,677,303
418,810
1,170,498
1,469,925
(299,427)
151,300
177,553
(26,253)
1,321,798
1,647,478
(325,680)
27,417,911
27,324,781
93,130
(1,559,206)
(3,546,478)
1,987,272
6,707,398
4,363,527
2,343,871
5,148,192
817,049
4,331,143
149.419.313
148.602.264
817.049
$ 154,567,505 $ 149,419,313 $ 5,148,192
The statement of revenues, expenses and changes of net assets shows how the District's net assets
changed during the fiscal years. In the case of the District, net assets increased by $5.1 million and
$800 thousand for the fiscal years ended June 30, 2010 and 2009, respectively.
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2010
Statement of Revenues, Expenses and Changes in Net Assets (Continued)
A closer examination of the sources of changes in net assets reveals that:
In 2010, the District's total revenues increased by $2.1 million, primarily due to an increase in
operating revenues of $2.7 million from increased water and sewer services as a result of a 41% rate
increase that went into effect in September 2009. Also, non - operating revenues decreased by $600
thousand primarily due to lower interest rates and more use of cash on extensive capital projects. In
addition, total expenses increased by only $100 thousand despite a $1.0 million increase in
depreciation expense and an increase in imported water rates, primarily due to an 18% reduction in
water usage by conserving customers and cuts made by District staff in the supplies and services area.
In 2009, the District's total revenues decreased by $400 thousand, primarily due to an increase in water
sales offset by a decrease in interest earnings. Total expenses increased by $2.2 million, due to
increases in imported water costs, groundwater replenishment, and departmental and operational
expenses.
Capital Assets
Changes in capital asset amounts for 2010 were as follows:
Capital assets:
Capital assets, not being depreciated
Capital assets, being depreciated
Less accumulated depreciation
Total capital assets, net
Balance
Transfers/
Transfers/
Balance
2009
Additions
Deletions
2010
(26,782,172)
$ 12,298,890
14,082,190
(2,366,246)
24,014,834
198,268,513
8,854,536
(134,889)
206,988,160
(45,655,616)
(5,153,891)
128,662
(50,680,845)
S 164,911,787
17,782,835
(2,372,473)
180,322,149
Changes in capital asset amounts for 2009 were as follows:
Balance
2008
Capital assets:
Capital assets, not being depreciated $ 30,032,709
Capital assets, being depreciated 164,602,200
Less accumulated depreciation (41,561,713)
Total capital assets, net S 153,073,196
-7-
Transfers/
Balance
Additions
Deletions
2009
9,048,353
(26,782,172)
12,298,890
34,175,639
(509,326)
198,268,513
(4,415,966)
322,063
(45,655,616)
38,808,026
(26,969,435)
164,911,787
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2010
Capital Assets
At the end of fiscal year 2010 and 2009, the District's investment in capital assets amounted to
$180.3 million and $164.9 million, respectively (net of accumulated depreciation). This investment in
capital assets includes land, transmission and distribution systems, reservoirs, tanks, pumps, buildings
and structures, equipment, vehicles and construction -in- process, etc. Major capital assets additions
during the year included upgrades to the District's pumping plant and the transmission and distribution
system, most notably the complete replacement of Lakeview Reservoir.
Additional information regarding capital assets can be found in note 5 in Notes to Basic Financial
Statements.
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2010
Long -Term Liabilities
Changes in longtermliabilifies for the year ended June 30, 2010 were
as follows:
Beginning
Ending
Balance
Additions
Reductions
Balance
2003 Revenue Certificates
of Participation
$ 9,645,000 $
-
$
(220,000)
$
9,425,000
2008 Revenue Certificates
of Participation
34,640,000
-
(605,000)
34,035,000
Subtotal
44,285,000
-
(825,000)
43,460,000
Add (Less):
Discount
(131,283)
-
5,432
(125,851)
Premium
757,375
-
(26,420)
730,955
Total Certificates
of Participation
44,911,092
-
(845,988)
44,065,104
Compensated absences
1,101,916
552,599
(603,627)
1,050,888
Other post -employ ieit
liability
120,774
224,018
(108,309)
236,483
Total
$ 46,133,782 $
776,617
$
(1,557,924)
$
45,352,475
Changes in longtermliabilifies for the year ended June 30, 2009 were
as foll ows:
Beginning
Ending
Balance
Additions
Reductions
Balance
2003 Revenue Certificates
of Participation
$ 9,860,000 $
-
$
(215,000)
$
9,645,000
2008 Revenue Certificates
of Participation
34,995,000
-
(355,000)
34,640,000
Subtotal
44,855,000
-
(570,000)
44,285,000
Add (Less):
Discount
(136,715)
-
5,432
(131,283)
Premium
783,795
-
26,420
757,375
Total Certificates
of Participation
45,502,080
-
(590,988)
44,911,092
Compensated absences
461,979
1,009,760
(369,823)
1,101,916
Other post enploynent
liability
-
217,979
(97,205)
120,774
Total
$ 45,964,059 $
1,227,739
$
(1,058,016)
$
46,133,782
Additional information regarding
long -term liabilities can be
found
in note
6
in Notes to Basic
Financial Statements.
KIM
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2010
Requests for Information
This financial report is designed to provide the District's funding sources, customers, stakeholders and
other interested parties with an overview of the District's financial operations and financial condition.
Should the reader have questions regarding the information included in this report or wish to request
additional financial information, please contact the District at 1717 E. Miraloma Avenue, Placentia,
California 92807 or the Finance Department at (714) 701 -3040.
-10-
BASIC FINANCIAL STATEMENTS
-11-
YORBA LINDA WATER DISTRICT
COMBINED STATEMENTS OF NET ASSETS
June 30, 2010
(With prior year data for comparison only)
ASSETS
2010
2009
CURRENT ASSETS:
UNRESTRICTED ASSETS:
Cash and cash equivalents
$ 8,686,564
$ 2,959,002
Cash and investments
-
9,248,752
Accounts receivable - water and sewer services
3,923,554
2,564,759
Accounts receivable - property taxes
120,976
29,183
Accrued interest receivable
22,248
32,033
Prepaid expenses and deposits
273,024
344,661
Inventory
233,588
282,699
TOTAL UNRESTRICTED ASSETS
13,259,954
15,461,089
RESTRICTED ASSETS:
Cash and cash equivalents
26,907,082
32,671,116
Cash and investments
-
3,399,809
Accrued interest receivable
1,867
5,401
TOTAL RESTRICTED ASSETS
26,908,949
36,076,326
TOTAL CURRENT ASSETS
40,168,903
51,537,415
NONCURRENT ASSETS:
Bond issuance costs
785,655
815,581
Capital assets (Note 5):
Non - depreciable
24,014,834
12,298,890
Depreciable, net of accumulated depreciation
156,307,315
152,612,897
TOTAL NONCURRENT ASSETS
181,107,804
165,727,368
TOTAL ASSETS
221,276,707
217,264,783
See independent auditors' report and notes to basic financial statements. (Continued)
-12-
YORBA LINDA WATER DISTRICT
COMBINED STATEMENTS OF NET ASSETS
(CONTINUED)
June 30, 2010
(With prior year data for comparison only)
LIABILITIES 2010 2009
CURRENT LIABILITIES:
PAYABLE FROM UNRESTRICTED CURRENT ASSETS:
Accounts payable $ 5,536,848 $ 5,558,142
Accrued expenses 125,727 174,579
Compensated absences payable (Note 6) 262,722 275,479
Customer and construction deposits 632,187 610,420
Deferred revenue 480,602 589,938
TOTAL PAYABLE FROM UNRESTRICTED CURRENT ASSETS 7,038,086 7,208,558
PAYABLE FROM RESTRICTED ASSETS:
Accrued interest payable 491,440 499,195
Certificates of Participation - current portion (Note 6) 855,000 825,000
TOTAL PAYABLE FROM RESTRICTED ASSETS 1,346,440 1,324,195
TOTAL CURRENT LIABILITIES 8,384,526 8,532,753
LONG -TERM LIABILITIES (LESS CURRENT PORTION)
Deferred annexation revenue 14,090,105 14,279,414
Compensated absences (Note 6) 788,166 826,437
Other post - employment benefit (OPEB) liability (Notes 6 and 7) 236,483 120,774
Certificates of Participation (Note 6) 43,210,104 44,086,092
TOTAL LONG -TERM LIABILITIES (LESS CURRENT PORTION) 58,324,858 59,312,717
TOTAL LIABILITIES 66,709,384 67,845,470
NET ASSETS:
Invested in capital assets, net of related debt (Note 9) 146,877,122 141,514,024
Restricted (Note 9) 15,797,432 14,063,802
Unrestricted (8,107,231) (6,158,513)
TOTAL NET ASSETS $ 154,567,323 $ 149,419,313
See independent auditors' report and notes to basic financial statements.
-13-
YORBA LINDA WATER DISTRICT
COMBINED STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
For the year ended June 30, 2010
(With prior year data for comparison only)
OPERATING REVENUES:
Water sales
Sewer revenues
Other operating revenues
2010
$ 22,141,731
1,275,979
571,903
2009
$ 19,626,738
1,259,723
439,302
TOTAL OPERATING REVENUES 23,989,613 21,325,763
OPERATING EXPENSES:
Variable water costs
10,688,318
10,859,328
Personnel services
6,677,757
6,498,959
Supplies and services
3,576,147
4,151,058
Depreciation
5,153,891
4,167,958
TOTAL OPERATING EXPENSES
26,096,113
25,677,303
OPERATING LOSS
(2,106,500)
(4,351,540)
NONOPERATING REVENUES (EXPENSES):
Property taxes
1,269,441
1,283,521
Investment income
268,242
689,108
Interest expense
(1,170,498)
(1,469,925)
Other nonoperating revenues
331,227
479,911
Other nonoperating expenses
(151,300)
(177,553)
TOTAL NONOPERATING REVENUES (EXPENSES)
547,112
805,062
NET LOSS BEFORE CAPITAL CONTRIBUTIONS
(1,559,388)
(3,546,478)
CAPITAL CONTRIBUTIONS
6,707,398
4,363,527
CHANGES IN NET ASSETS
5,148,010
817,049
NET ASSETS - BEGINNING OF YEAR, AS RESTATED (NOTE 13)
149,419,313
148,602,264
NET ASSETS - END OF YEAR
$ 154,567,323
$ 149,419,313
See independent auditors' report and notes to basic financial statements.
-14-
YORBA LINDA WATER DISTRICT
COMBINED STATEMENTS OF CASH FLOWS
For the year ended June 30, 2010
(With prior year data for comparison only)
See independent auditors' report and notes to basic financial statements. (Continued)
-15-
2010
2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$ 22,589,206
$ 23,377,263
Cash payments to employees for salaries and wages
(6,661,928)
(6,257,272)
Cash payments to suppliers of goods and services
(14,101,632)
(14,673,677)
NET CASH PROVIDED BY OPERATING ACTIVITIES
1,825,646
2,446,314
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Proceeds from property taxes and assessments
1,173,205
1,274,303
Other revenue
333,391
665,540
Other expenses
(115,942)
(142,195)
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
1,390,654
1,797,648
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Property taxes received for debt service
4,443
6,883
Proceeds from capital contributions
130,619
623,292
Acquisition and construction of capital assets
(13,505,308)
(12,286,690)
Proceeds from sales of capital assets
4,063
1,635
Principal paid on long -term liability
(825,000)
(570,000)
Interest paid on long -term liability
(1,991,711)
(2,157,836)
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
(16,182,894)
(14,382,716)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale /purchase of investments, net
12,671,946
(5,364,774)
Interest and investment earnings
258,176
513,191
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES
12,930,122
(4,851,583)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(36,472)
(14,990,337)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
35,630,118
50,620,455
CASH AND CASH EQUIVALENTS - END OF YEAR
$ 35,593,646
$ 35,630,118
See independent auditors' report and notes to basic financial statements. (Continued)
-15-
YORBA LINDA WATER DISTRICT
COMBINED STATEMENTS OF CASH FLOWS
(CONTINUED)
For the year ended June 30, 2010
(With prior year data for comparison only)
RECONCILIATION OF OPERATING LOSS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in assets:
Accounts receivable
Inventory
Prepaid expenses and deposits
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
Accrued salaries and wages
Accrued other post - employment benefits (OPEB) liability
Accrued compensated absences
Customer and construction deposits
Prepaid connection fees
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION:
Unrestricted
Restricted
TOTAL CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION
NONCASH INVESTING, CAPITAL AND
RELATED FINANCING ACTIVITIES:
Amortization related to long -term debt
Capital contributions
See independent auditors' report and notes to basic financial statements.
-16-
2010 2009
$ (2,106,500) $ (4,351,540)
5,153,891 4,167,958
(1,358,795)
2,078,635
49,111
115,286
71,637
474,957
(21,294)
(347,076)
(48,852)
90,924
115,709
120,774
(51,028)
29,989
21,767
73,726
-
(7,319)
3,932,146 6,797,854
$ 1,825,646 $ 2,446,314
$ 8,686,564 $ 2,959,002
26,907,082 32,671,116
$ 35,593,646 $ 35,630,118
$ 20,988 $ 20,988
$ 6,278,134 $ 3,416,512
NOTES TO BASIC FINANCIAL STATEMENTS
-17-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2010
1. ORGANIZATION AND DESCRIPTION OF THE REPORTING ENTITY:
The Yorba Linda Water District (the District) is an independent special district established in 1959,
which operates under the authority of Division 12 of the California Water Code for the purpose of
providing water and sewer services to the properties within the District. The District is governed
by a five member board of Directors elected by the voters in the area to four -year terms. The
District provides two services which include Water and Sewer. Water is provided to the entire
service area. Sewer is provided to about two - thirds of the service area. The District's service area
includes Yorba Linda and portions of Placentia, Anaheim, Brea, and areas of unincorporated
Orange County. The District provides water and sewer service to approximately 81,893 residents.
The criteria used in determining the scope of the reporting entity are based on the provisions of
GASB Statement 14. The District is the primary government unit. Component units are those
entities which are financially accountable to the primary government, either because the District
appoints a voting majority or the component unit's board, or because the component unit will
provide a financial benefit or impose a financial burden on the District.
The District's reporting entity includes the Yorba Linda Water District Public Financing
Corporation, a California nonprofit public benefit corporation, formed in July 2003 for the purpose
of providing assistance to the District and other public agencies in the State of California of which
the District is a member, or is otherwise engaged with in the financing, refinancing, acquiring,
constructing and rehabilitating of facilities, land and equipment, in the sale or leasing of facilities,
land and equipment for the use, benefit and enjoyment of the public served by such agencies and
any other purpose incidental thereto). Although the District and the Public Facilities Corporation
are legally separate entities, the District's Board of Directors is financially responsible for the
Public Financing Corporation and, therefore, the accompanying financial statements include the
accounts and records of the Public Financing Corporation using the blending method as required
by accounting principles generally accepted in the United States of America. There are no separate
financial statements for the Public Financing Corporation.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Basic Financial Statements:
The basic financial statements are comprised of the Combined Statements of Net Assets, the
Combined Statements of Revenues, Expenses and Changes in Net Assets, the Statements of
Cash Flows and the notes to the basic financial statements.
See independent auditors' report.
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation:
The accounts of the District are an enterprise fund. An enterprise fund is a Proprietary type
fund used to account for operations (a) that are financed and operated in a manner similar to
private business enterprises - where the intent of the governing body is that the costs (expenses,
including depreciation) of providing goods or services to the general public on a continuing
basis be financed or recovered primarily through user charges; or (b) where the governing body
has decided that periodic determination of revenues earned, expenses incurred, and /or net
income is appropriate for capital maintenance, public policy, management control,
accountability or other purposes. The District has elected under Governmental Accounting
Standards Board (GASB) Statement 20, Accounting and Financial Reporting for Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all
GASB pronouncements as well as any applicable pronouncements of the Financial Accounting
Standards Board (FASB), the Accounting Principles Board (APB), or any Accounting Research
Bulletins (ARB) issued on or before November 30, 1989, unless they contradict or conflict
with GASB pronouncements.
c. Measurement Focus and Basis of Accounting:
Measurement focus is a term used to describe "which" transactions are recorded within the
various financial statements. Basis of accounting refers to "when" transactions are recorded
regardless of the measurement focus applied. The accompanying financial statements are
reported using the economic resources measurement focus, and the accrual basis of accounting.
Under the economic measurement focus all assets and liabilities (whether current or
noncurrent) associated with these activities are included on the Statement of Net Assets. The
Statement of Revenues, Expenses and Changes in Net Assets present increases (revenues) and
decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows.
See independent auditors' report.
-19-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Net Assets:
In the Statement of Net Assets, net assets are classified in the following categories:
• Invested in capital assets, net of related debt - This amount consists of capital assets net of
accumulated depreciation and reduced by outstanding debt that is attributed to the
acquisition, construction, or improvement of the assets.
• Restricted net assets - This amount is restricted by external creditors, grantors, contributors,
or laws or regulations of other governments.
• Unrestricted net assets - This amount is all net assets that do not meet the definition of
"invested in capital assets, net of related debt" or "restricted net assets ".
When both restricted and unrestricted resources are available for use, the District may use
restricted resources or unrestricted resources based on the Board's discretion.
e. Operating Revenues and Expenses:
Operating revenues, such as charges for services (water sales and sewer service charges) result
from exchange transactions associated with the principal activity of the District. Nonoperating
revenues, such as property taxes and assessments, and investment income, result from
nonexchange transactions or ancillary activities in which the District receives value without
directly giving equal value in exchange.
Operating expenses include the cost of sales and services, administrative expenses and
depreciation on capital assets. All expenses not meeting this definition are reported as
nonoperating expenses.
f. Cash and Cash Equivalents:
The District considers all highly liquid investments with a maturity of three months or less at
the time of purchase to be cash equivalents.
See independent auditors' report.
-20-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
g. Investments and Investment Policy:
The District has adopted an investment policy directing the District's General Manager or
Finance Director to invest, reinvest, sell or exchange securities.
Investments are stated at fair value which represents the quoted or stated market value.
Changes in fair value that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings, changes in fair
value, and any gains or losses realized upon the liquidation or sale of investments.
h. Accounts Receivable:
The District extends credit to customers in the normal course of operations. Management has
evaluated the accounts and believes they are all collectible. Management evaluates all
accounts receivable and if it is determined that they are uncollectible they are written off as a
bad debt expense. A charge of $41,612 and $27,135 were made to bad debt expense for the
fiscal years ended June 30, 2010 and 2009, respectively.
i. Property Taxes and Assessments:
The Orange County Assessor's Office assesses all real and personal property within the County
each year. The Orange County Tax Collector's Office bills and collects the District's share of
property taxes and assessments. The Orange County Treasurer's Office remits current and
delinquent property tax collections to the District throughout the year. Property taxes in
California are levied in accordance with Article XIIIA of the State Constitution at I% of
countywide assessed valuations. This levy is allocated pursuant to state law to the appropriate
units of local governments.
Property taxes receivable at year -end are related to property taxes collected by the Orange
County Tax Collector which have not been credited to the District's cash balance as of June 30.
The property tax calendar is as follows:
Lien Date:
Levy Date:
Due Dates:
Collection Dates:
January 1
July 1
First Installment - November 1
Second Installment - March 1
First Installment - December 10
Second Installment - April 10
See independent auditors' report.
-21-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
j. Prepaid Expenses:
Certain payments to vendors reflects costs or deposits applicable to future accounting periods
and are recorded as prepaid items in the basic financial statements.
k. Inventory:
Inventory consists primarily of materials and supplies used in the construction and
maintenance of the water and sewer systems and are stated at cost using the average -cost
method on a first in, first out basis.
1. Capital Assets:
Capital assets acquired and /or constructed are capitalized at historical cost. District policy has
set the capitalization threshold for reporting capital assets at $5,000. Contributed assets are
recorded at estimated fair market value at the date of contribution. Upon retirement or other
disposition of capital assets, the cost and related accumulated depreciation are removed from
the respective balances and any gains or losses are recognized.
Depreciation is recorded on the straight -line basis over the estimated useful lives of the assets
as follows:
Source of Supply 10 to 75 years
Pumping Plant 10 to 40 years
Water Treatment Plant 15 to 40 years
Transmission and Distribution Plant 5 to 100 years
General Plant 3 to 40 years
m. Bond Issuance Costs:
Bond issuance costs are amortized on a straight -line methodology based on the estimated term
of the related bond debt. Bond issuance costs were $785,655 and $815,581 net of accumulated
amortization of $112,130 and $82,204 at June 30, 2010 and 2009, respectively.
n. Interest Expense:
The District incurs interest charges on the Certificates of Participation. Interest expense of
$787,038 and $580,963 has been capitalized as an addition to the cost of construction for the
years ended June 30, 2010 and 2009, respectively.
See independent auditors' report.
-22-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
o. Compensated Absences:
The District's policy is to permit employees to accumulate earned vacation and sick leave. The
liability for vested vacation and sick leave is recorded as an expense when earned. Employees
may carry forward up to one and one -half years of earned vacation days and an unlimited
number of sick leave days.
Upon termination or retirement, permanent employees are entitled to receive compensation at
their current base salary for all unused vacation leave except for those employees that have not
completed the probationary period.
Permanent employees that retire in accordance with the Public Employee's Retirement System
qualifications are entitled to receive cash compensation at their current base salary for
three- eighths of all unused sick leave and the remaining five- eights of the unused sick leave is
contributed to the employee's PERS account. The District has accrued 100% of the unused
sick leave as a liability as it expects most employees to meet the PERS requirements when
retiring or leaving the District.
p. Deferred Credits:
Deferred credits represent customer refunds that have not been cashed.
q. Construction Advances and Deposits:
Construction deposits are collected by the District to cover the cost of construction projects
within the District. Funds in excess of project costs are refunded to the customer.
r. Construction Bonding Deposits:
The District's policy is to maintain certain bonding requirements for water and sewer
construction projects performed within District boundaries to ensure the proper completion of
the project. Deposited amounts are refunded upon final approval of the project.
s. Prepaid Connection Fees:
Connection fees are collected by the District to cover the cost of service connections within the
District. Funds in excess of connection costs are refunded to the customer.
See independent auditors' report.
-23-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
t. Deferred Annexation Revenue:
The District collects a fee from newly annexed developments for all residential and
commercial properties. This fee is in -lieu of the District's share of the I% property tax revenue
which the District no longer received post- Proposition 13. The fee is a present worth value
required to generate a forty year revenue stream equivalent to the lost property tax revenue. It
is calculated based on the fair market value estimate of the improved property at the time the
fee is collected and based on the current rate of return on the District's investments. The
deposit balance accrues interest and provides a source of operational revenue for the District.
This deferred revenue source may be used for capital facilities in the future if approved by the
Board.
u. Water and Sewer Sales:
The District recognizes water and sewer service charges based on cycle billings rendered to the
customers each month.
v. Capital Contributions:
Capital contributions represent cash and capital asset additions contributed to the District by
property owners or real estate developers desiring services that require capital expenditures or
capacity commitment.
w. Budgetary Policies:
The District adopts annual nonappropriated budget for planning, control and evaluation
purposes. Budgetary control and evaluation are affected by comparisons of actual revenues
and expenses with planned revenues and expenses for the period. Encumbrance accounting is
not used to account for commitments related to unperformed contracts for construction and
services.
x. Use of Estimates:
The financial statements are prepared in conformity with accounting principles generally
accepted in the United States of America and, accordingly, include amounts that are based on
management's best estimates and judgments. Accordingly, actual results could differ from the
estimates.
See independent auditors' report.
-24-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
y. Prior Year Data:
Selected information regarding the prior year has been included in the accompanying financial
statements. This information has been included for comparison purposes only and does not
represent a complete presentation in accordance with generally accepted accounting principles.
Accordingly, such information should be read in conjunction with the District's prior year
financial statements, from which this selected financial data was derived.
3. CASH AND INVESTMENTS:
Cash and Investments:
Cash and investments as of June 30, 2010 are reported in the accompanying combining schedule of
net assets as follows:
Unrestricted Current Assets:
Cash and cash equivalents
Restricted Assets:
Cash and cash equivalents
Total Cash and Investments
Water Sewer Total
$ 6,850,711 $ 1,835,853 $ 8,686,564
26,907,082 - 26,907,082
33.757.793 S 1.835.853 S 35.593.646
Cash and investments as of June 30, 2010 consisted of the following:
Water Sewer
Cash on hand $ 1,200 $ -
Deposits with financial institutions 2,047,977 121,766
Escrow deposits 1,282,379 -
Investments 30,426,237 1,714,087
Total Cash and Investments
See independent auditors' report.
-25-
Total
$ 1,200
2,169,743
1,282,379
32,140,324
33,757,793 1,835,853 35,593,646
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
3. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by the California Government Code and the District's Investment
Policy:
The table below identifies the investment types that are authorized for the District by the California
Government Code (or the District's investment policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the District's investment
policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit
risk.
This table does not address investments of debt proceeds held by bond trustees that are governed
by the provisions of debt agreements of the District, rather than the general provisions of the
California Government Code or the District's investment policy.
* Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
N/A - Not Applicable
See independent auditors' report.
-26-
Maximum
Maximum
Maximum
Percentage
Investment
Authorized Investment Type
Maturity_
of Portfolio *
in One Issuer
Bank or Savings and Loans
5 years
None
None
Local Agency Investment Fund (LAIF)
N/A
None
$10 million
Orange County Commingled Investment Pool
N/A
None
$10 million
California Asset Management Program
N/A
None
None
United States Treasury Bills, Notes
and Bonds
5 years
None
None
United States Government Sponsored
Enterprise Securities
5 years
50%
None
Corporate Bonds
5 years
30%
None
Bankers Acceptances
180 days
10%
None
Commercial Paper
270 days
25%
None
CalTRUST Investment Pool
N/A
N/A
$10 million
Money Market Funds
N/A
20%
None
* Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
N/A - Not Applicable
See independent auditors' report.
-26-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
3. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by Debt Agreements:
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the District's
investment policy. The table below identifies the investment types that are authorized for
investments held by bond trustees. The table also identifies certain provisions of these debt
agreements that address interest rate risk and concentration of risk.
Authorized Investment
Cash
United States Treasury Bills, Notes
and Bonds
United States Treasury Obligations
Resolution Funding Corp. (REFCORP)
Prefunded Municipal Bonds
United States Government Sponsored
Enterprise Securities
Commercial Paper
Money Market Funds
Certificates of Deposits
Guaranteed Investment Contracts
Bankers Acceptance
Repurchase Agreements
Local Agency Investment Fund
Disclosures Relating to Interest Rate Risk:
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the District manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity as necessary to provide the cash flow and liquidity needed for
operations.
See independent auditors' report.
-27-
Maximum
Maximum
Maximum
Percentage
Investment
Maturity
Allowed
in One Issuer
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
1 year
None
None
30 days
None
None
None
None
None
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the District manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity as necessary to provide the cash flow and liquidity needed for
operations.
See independent auditors' report.
-27-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
3. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Interest Rate Risk (Continued):
Information about the sensitivity of the fair values of the District's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the District's investments by maturity as of June 30, 2010.
Investment Ty
CalTRUST Investment Pool
Held by bond trustee:
Money market funds
Disclosures Relating to Credit Risk:
Remaining
Maturity
(in Months)
12 Months
or Less
$ 21,520,247
10,620,077
32.140.324
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented in the following table are the minimum rating
required by (where applicable) the California Government Code, the District's investment policy,
or debt agreements, and the actual Standard and Poor's credit rating as of year end for each
investment type.
Minimum
Legal Not
Investment Type Rating Total Rated AAA AA+
Ca1TRUST Investment Pool N/A $ 21,520,247 $ 17,186,223 $ - $ 4,334,024
Held by bond trustee:
Money market funds A 10,620,077 - 10,620,077 -
See independent auditors' report.
$ 32,140,324 $ 17,186,223 S 10,620,077 S 4,334,024
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
3. CASH AND INVESTMENTS (CONTINUED):
Concentration of Credit Risk:
The investment policy of the District contains no limitations on the amount that can be invested in
any one issuer beyond that stipulated by the California Government Code.
Custodial Credit Risk:
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, the District will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty (e.g., broker - dealer) to a
transaction, the District will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. With respect to investments, custodial credit
risk generally applies only to direct investments in marketable securities. Custodial credit risk does
not apply to a local government's indirect investment in securities through the use of mutual funds
or government investment pools (such as LAIF).
The California Government Code and the District's investment policy do not contain legal or
policy requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government Code
requires that a financial institution secure deposits made by state or local governmental units by
pledging securities in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public agencies.
California law also allows financial institutions to secure District deposits by pledging first trust
deed mortgage notes having a value of 150% of the secured public deposits. The District had
deposits with bank balances of $2,182,276 as of June 30, 2010. Of the bank balances, up to
$250,000 are federally insured and the remaining balance is collateralized in accordance with the
Code; however, the collateralized securities are not held in the District's name.
See independent auditors' report.
-29-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
3. CASH AND INVESTMENTS (CONTINUED):
Investment in CalTRUST Investment Pool:
CalTRUST is a Joint Powers Agency Authority created by local public agencies to provide a
convenient method for local public agencies to pool their assets for investment purposes.
CalTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and
investment officers. The Board sets overall policies for the program and selects and supervises the
activities of the investment manager and other agents. CalTRUST maintains and administers four
pooled accounts within the program: Money Market, Short -Term, Medium -Term and Long -Term.
The Money Market account permits daily transactions, with same -day liquidity (provided
redemption requests are received by 1:00 p.m. Pacific time), with no limit on the amount of funds
that may be invested. The Short-Term account permits an unlimited number of transactions per
month (with prior day notice), with no limit on the amount of funds that may be invested. The
Medium- and Long -Term accounts permit investments, withdrawals and transfers once per month,
with five days advance notice. All CalTRUST accounts comply with the limits and restrictions
placed on local agency investments by the California Government Code. CalTRUST imposes a
$250,000 minimum investment; however, there is no maximum limit. The fair value of the
District's investment in this pool is reported in the accompanying financial statements at amounts
based upon the District's percentage interest of the fair value provided by CalTRUST for the
CalTRUST accounts (in relation to the amortized cost of that portfolio). The balance available for
withdrawal is based on the accounting records maintained by CalTRUST.
4. RESTRICTED ASSETS:
Restricted assets were provided by, and are to be used for the following as of June 30, 2010
and 2009:
Source Use 2010 2009
Custodial receipts
Bond proceeds, taxes,
assessments and interest
See independent auditors' report.
Custodial costs
Construction of capital
assets expansion
-30-
$ 1,282,379 $ 1,074,800
25,626,570 35,001,526
26.908.949 S 36.076.326
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
5. CAPITAL ASSETS:
Changes in capital assets for the year ended June 30, 2010 is as follows:
Capital assets, not being depreciated:
Land, mineral and water rights
Construction in progress
Total capital assets, not
being depreciated
Capital assets, being depreciated:
Source of supply
Pumping plant
Water treatment plant
Transmission and distribution plant
General plant
Total capital assets,
being depreciated
Less accumulated depreciation for:
Source of supply
Pumping plant
Water treatment plant
Transmission and distribution plant
General plant
Total accumulated depreciation
Total capital assets,
being depreciated, net
Total capital assets, net
Balance
July 1, 2009 Balance
(As Restated) Additions Deletions June 30, 2010
$ 347,490 $ - $ - $ 347,490
11,951,400 14,082,190 (2,366,246) 23,667,344
12,298,890 14,082,190 (2,366,246) 24,014,834
5,769,117 - (47,234) 5,721,883
16,867,820 - - 16,867,820
2,556,613 67,268 - 2,623,881
154,974,084 8,325,816 (8,655) 163,291,245
18,100,879 461,452 (79,000) 18,483,331
198,268,513 8,854,536 (134,889) 206,988,160
(1,374,629)
(140,910)
44,352 (1,471,187)
(3,205,619)
(609,150)
- (3,814,769)
(697,516)
(104,933)
- (802,449)
(35,807,133)
(3,526,536)
5,310 (39,328,359)
(4,570,719) (772,362)
79,000 (5,264,081)
(45,655,616) (5,153,891) 128,662 (50,680,845)
152,612,897 3,700,645 (6,227) 156,307,315
164.911.787 17.782.835 (2.372.473) 180.322.149
Depreciation expense for the depreciable capital assets was $5,153,891 in 2010.
The District has been involved in various construction projects throughout the year. The balance of
construction in progress at June 30, 2010 is $23,667,344.
See independent auditors' report.
-31-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES:
Changes in long -term liabilities for the year ended June 30, 2010 were as follows:
Certificates of Participation:
2003 Revenue Certificates
of Participation
2008 Revenue Certificates
of Participation
Subtotal
Add (Less):
Discount
Premium
Total Certificates
of Participation
Compensated absences
Other post - employment
liability
Total
Beginning
Balance
Ending
Due Within
(As Restated)
Additions Reductions
Balance
One Year
$ 9,645,000 $
- $ (220,000) $
9,425,000
$ 225,000
34,640,000
- (605,000)
34,035,000
630,000
44,285,000
- (825,000)
43,460,000
855,000
(131,283)
- 5,432
(125,851)
-
757,375
- (26,420)
730,955
-
44,911,092
- (845,988)
44,065,104
855,000
1,101,916
552,599 (603,627)
1,050,888
262,722
120,774 224,018 (108,309) 236,483 -
46,133,782 776,617 (1,557 224) 45.352.475 1.117.722
2003 Revenue Certificates of Participation:
In August 2003, the Public Financing Corporation issued $10,645,000 2003 Revenue Certificates
of Participation for the purpose of financing the Highland Reservoir Renovation and
Richfield -Phase 3 Renovation Project. The Certificates bear interest ranging from 2% to 5 %,
payable semiannually on April 1 and October 1, commencing April 1, 2004. The Term Certificates
of $2,295,000 are due on October 1, 2028 and the Term Certificates of $2,930,000 are due on
October 1, 2033.
A surety bond for $679,137 was issued by Financial Guaranty Insurance Company (FGIC). FGIC
is not rated by Moody's Investors' Service, Standard & Poor's or Fitch Investors' Service. At
June 30, 2010 the 2003 Certificates outstanding balance was $9,425,000.
The Certificates are obligations of the Corporation payable solely from payments received from
the District pursuant to the Installment Purchase Agreement, by and between the District and the
Corporation. The Installment Purchase Agreement requires the District to fix, prescribe and collect
rates and charges for the water service which will be at least sufficient to yield during each fiscal
year net revenues equal to 110% of the debt service for such fiscal year. For fiscal year 2010, the
net revenues equal to 222% of the debt service.
See independent auditors' report.
-32-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
2003 Revenue Certificates of Participation (Continued):
The annual debt service requirements for the 2003 Revenue Certificates of Participation
outstanding at June 30, 2010 are as follows:
Year Ending
2011
2012
2013
2014
2015
2016-2020
2021 -2025
2026-2030
2031 -2034
Subtotal
Less: Discount
Total
2008 Revenue Certificates of Participation:
Principal
$ 225,000
235,000
245,000
255,000
265,000
1,500,000
1,890,000
2,410,000
2,400,000
9,425,000
(125,851)
Interest
$ 445,726
437,382
428,076
418,076
407,411
1,848,890
1,447,069
913,000
247,500
6,593,130
Total
$ 670,726
672,382
673,076
673,076
672,411
3,348,890
3,337,069
3,323,000
2,647,500
16,018,130
(125,851)
9.299.149 S 6.593.130 S 15.892.279
In February 2008, the District issued $34,995,000 2008 Revenue Certificates of Participation for
the purpose of financing the 2008 Capital Improvement Projects. The Certificates bear interest
ranging from 4% to 5 %, payable semiannually on April 1 and October 1, commencing
October 1, 2008. The Term Certificates of $10,885,000 are due on October 1, 2038. The legal
reserve requirement of $2,147,096 was fully funded at June 30, 2010. At June 30, 2010 the 2008
Certificates outstanding balance was $34,035,000.
The Certificates are obligations of the Corporation payable solely from payments received from
the District pursuant to the Installment Purchase Agreement, by and between the District and the
Corporation. The Installment Purchase Agreement requires the District to fix, prescribe and collect
rates and charges for the water service which will be at least sufficient to yield during each fiscal
year net revenues equal to 110% of the debt service for such fiscal year. For fiscal year 2010, the
net revenues equal to 222% of the debt service.
See independent auditors' report.
-33 -
rol
7
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
LONG -TERM LIABILITIES (CONTINUED):
2008 Revenue Certificates of Participation (Continued):
The annual debt service requirements for the 2008 Revenue Certificates of Participation
outstanding at June 30, 2010 are as follows:
Year Ending
2011
2012
2013
2014
2015
2016-2020
2021 -2025
2026-2030
2031 -2035
2036-2039
Subtotal
Add: Premium
Total
Compensated Absences:
Principal
$ 630,000
655,000
680,000
705,000
735,000
4,140,000
5,040,000
6,170,000
7,675,000
7,605,000
34,035,000
730,955
34.765.955
Interest
$ 1,503,496
1,477,796
1,451,096
1,423,396
1,394,596
6,498,480
5,582,601
4,413,004
2,861,764
783,375
27,389,604
Total
$ 2,133,496
2,1 32,796
2,131,096
2,128,396
2,129,596
10,638,480
10,622,601
10,583,004
1 0,536,764
8,388,375
61,424,604
730.955
27.389.604 S 62.155.559
Compensated absences are comprised of unpaid vacation leave, sick leave and compensating time
off which are accrued as earned. (See Note 20).
OTHER POST EMPLOYMENT BENEFITS (OPEB):
a. Plan Description:
The District, through a single employer defined benefit plan, provides post- employment health
care benefits. Specifically, the District provides health insurance for its retired employees and
directors, their dependent spouses (if married and covered on the District's plan at time of
retirement), or survivors in accordance with Board resolutions. Medical coverage is provided
for retired employees who are age 50 or over and who have a minimum of 5 years service with
the District. The District pays 100% of the premium for the retiree and the dependent
coverage, for one year for every three years of service. Medical coverage is provided for the
surviving spouse of retired employees and the surviving spouse of active employees who upon
death had attained age 50 and who had a minimum of 5 years of service with the District, for
one year for every three years of service. The plan does not provide a publicly available
financial report.
See independent auditors' report.
-34-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
7. OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED):
b. Funding Policy:
The contribution requirements of plan members and the District are established and may be
amended by the District, District's Board of Directors, and /or the employee associations.
Currently, contributions are not required from plan members. The District is currently funding
this OPEB obligation on a pay -as- you -go basis. For the year ended June 30, 2010, the District
paid $108,309 in health care costs for its retirees and their covered dependents.
c. Annual OPEB Cost and Net OPEB Obligation:
The District's annual OPEB cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and to amortize any unfunded
liabilities of the plan over a period not to exceed thirty years.
The following table shows the components of the District's annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the District's net OPEB obligation to
the Retiree Health Plan:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Actual contributions made
Increase in net OPEB obligation
Net OPEB Obligation - beginning of year
Net OPEB Obligation - end of year
$ 217,979
6,039
224,018
108,309
115,709
120,774
S 236,483
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the net OPEB obligation for the years ended June 30, 2010 and 2009 (the first year in
which GASB Statement 45 is required to be implemented) were as follows:
Fiscal
Year
Ended
6/30/09
6/30/10
Annual
OPEB
Cost
$ 217,979
224,018
Percentage
of Annual
OPEB Costs
Contributed
44.64%
48.35%
See independent auditors' report.
-35-
Net
OPEB
Obligation
$ 120,774
236,483
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
7. OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED):
d. Funded Status and Funding Progress:
As of June 1, 2009, the most recent actuarial valuation date, the plan was zero percent funded.
The actuarial accrued liability for benefits was $1,740,127, and the actuarial value of assets was
zero, resulting in an unfunded accrued liability (UAL) of $1,740,127. The covered payroll
(annual payroll of active employees covered by the plan) was $4,983,653 and the ratio of the
UAL to the covered payroll was 34.9 %.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about rates of employee turnover, retirement, mortality, as well as economic
assumptions regarding claim costs per retiree, healthcare inflation and interest rates. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to the financial statements, presents
multi -year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
e. Actuarial Methods and Assumptions:
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short -term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term
perspective of the calculations. In the June 1, 2009 actuarial investment valuation, the entry
age normal cost method was used. The actuarial assumptions included an interest rate of 5%
per annum, a projected salary increase of 3.0% per annum and a health inflation rate of 4.0%
per annum.
See independent auditors' report.
-36-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
8. DEFINED BENEFIT PENSION PLAN:
a. Plan Description:
The District contributes to the California Employees Retirement System (CalPERS), an agent
multiple- employer public employee defined benefit pension plan. CalPERS provides retirement
and disability benefits, annual cost -of- living adjustments, and death benefits to plan members
and beneficiaries. CalPERS acts as a common investment and administrative agent for
participating public entities within the State of California. Benefit provisions and all other
requirements are established by State statute and District ordinance. Copies of CalPERS'
annual financial report may be obtained from their Executive Office located at, 400 P Street,
Sacramento, CA 95814.
b. Funding Policy:
The contribution rate for plan members in the CalPERS 2.0% at 55 Risk Pool Retirement Plan
is 7% of their annual covered salary. The District makes these contributions required of
District employees on their behalf and for their account. Also, the District is required to
contribute the actuarially determined remaining amounts necessary to fund the benefits for its
members. The required employer contribution rates for fiscal year 2010, 2009 and 2008 were
10.062 %, 9.886% and 9.471 %, respectively. The contribution requirements of the plan
members are established by State statute, and the employer contribution rate is established and
may be amended by CalPERS. For fiscal years 2010, 2009 and 2008 the District's annual
contribution were $857,291, $847,632 and $763,653, respectively, for CalPERS and was equal
to the District's required and actual contributions for each year.
9. NET ASSETS INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT AND
RESTRICTED NET ASSETS:
The balance of net investment in capital assets consisted of the following as of June 30, 2010
and 2009:
Capital assets, net of accumulated depreciation
Certificates of participation - current
Certificates of participation - long -term
Unspent debt proceeds
Net assets invested in capital assets,
net of related debt
See independent auditors' report.
-37-
2010
$ 180,322,149
(855,000)
(43,210,104)
10,620,077
2009
$ 164,911,787
(825,000)
(44,086,092)
21.513.329
146.877.122 S 141.514.024
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
9. NET ASSETS INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT AND
RESTRICTED NET ASSETS (CONTINUED):
Restricted Net Assets:
Restricted net assets represents amounts restricted for debt service for constraints by the third party
holders of the Certificates of Participation.
10. RISK MANAGEMENT:
The District is exposed to various risks of loss related to torts, theft of, damage to and destruction
of assets, errors and omissions, injuries to employees and natural disasters. In an effort to manage
its risk exposure, the District is a member of the Association of California Water Agencies Joint
Powers Insurance Authority (the Authority).
The Authority is a risk - pooling self - insurance authority, created under provisions of California
Government Code Sections 6500 et. seq. The purpose of the Authority is to arrange and administer
programs of insurance for the pooling of self - insured losses and to purchase excess insurance
coverage.
At June 30, 2010, as a member of the Authority, the District participated in the insurance programs
as follows:
• General and auto liability, public officials and employee's error and omissions: Total risk
financing self - insurance limits of $1,000,000, combined single limit at $1,000,000 per
occurrence. The District purchased additional excess coverage layers: $59 million for
general, auto and public officials liability, which increases the limits on the insurance
coverage noted above.
• Employee dishonesty coverage up to $100,000 per loss includes public employee
dishonesty, forgery or alteration and theft, disappearance and destruction coverages, subject
to a $1,000 deductible per occurrence.
• Property loss is paid at the replacement cost for property on file, if replaced within two
years after the loss, otherwise paid on an actual cash value basis. ACWA JPIA is
self - insured for the first $50,000, and then purchased excess coverage up to $100 million,
subject to a $2,500 deductible, except for a $1,000 deductible on vehicles.
• Boiler and machinery coverage for the replacement cost up to $100 million per occurrence,
subject to various deductibles depending on the type of equipment.
• Workers' compensation insurance up to California statutory limits for all work related
injuries /illnesses covered by California law.
See independent auditors' report.
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
10. RISK MANAGEMENT (CONTINUED):
Settled claims have not exceeded any of the coverage amounts in any of the last three fiscal years
and there were no reductions in the District's insurance coverage during the years ended 2010,
2009 and 2008. Liabilities are recorded when it is probable that a loss has been incurred and the
amount of the loss can be reasonably estimated net of the respective insurance coverage.
Liabilities include an amount for claims that have been incurred but not reported (IBNR). There
were no IBNR clams payable as of June 30, 2010, 2009 and 2008.
11. COMMITMENTS AND CONTINGENCIES:
Construction Contracts:
The District has a variety of agreements with private parties relating to the installation,
improvement or modification of water facilities and distribution systems within its service area.
The financing of such construction contracts is being provided primarily from the District's
replacement reserves and advances for construction. The District has committed to approximately
$2,035,774 of open construction contracts as of June 30, 2010.
Construction contracts include:
See independent auditors' report.
-39-
Total
Construction
Balance
Approved
Costs
to
Project Name
Contract
to Date
Complete
Design of Hidden Hills Reservoir (2MG)
$ 322,769
$ 319,541
$ 3,228
Hidden Hills Reservoir construction
5,012,458
4,525,453
487,005
Hidden Hills Reservoir construction management
348,520
346,383
2,137
Hidden Hills Reservoir geotechnical services
113,470
44,541
68,929
Hidden Hills Reservoir construction support services
277,465
263,592
13,873
CM for Highland Reservoir Replacement (6MG)
605,856
442,164
163,692
Geotechnical support services for Highland Reservoir
Replacement
86,200
79,699
6,501
Environmental support services for Highland Reservoir
Replacement
37,951
32,515
5,436
Construction of Highland Reservoir Replacement (6MG)
9,384,921
8,610,597
774,324
GIS parcel database 5 -year purchase agreement
42,118
33,694
8,424
Zone reconfiguration project
215,751
207,365
8,386
Zone Reconfiguration Project construction materials testing
39,400
37,605
1,795
See independent auditors' report.
-39-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
11. COMMITMENTS AND CONTINGENCIES (CONTINUED):
Construction Contracts (Continued):
Litigation:
In November 2009, a series of wildfires, also known as the Yorba Linda - Corona Fire by the news
media, or Triangle Complex Fire, spread across the communities of Corona, Chino Hills, Yorba
Linda, Anaheim Hills, and Brea in Orange and Riverside County, California, and also spread to
Diamond Bar in Los Angeles County. The fire burned about 30,305 acres, destroyed about
200 structures, and forced the evacuations of about 7,000 homes. There are claims being asserted
against the District by homeowners and others damaged by the fires. As a member of ACWA JPIA
(see Note 10), these claims are currently handled by the JPIA's legal counsel. The District's
management believes the ultimate outcome of these claims will be not exceed the District's
insurance coverage amounts.
12. PROPOSITION IA BORROWINGS BY THE STATE OF CALIFORNIA:
Under the provisions of Proposition I and as part of the 2009 -2010 budget package passed by the
California state legislature on July 28, 2009, the State of California borrowed 8% of the amount of
property tax revenue, including those property taxes associated with the in -lieu motor vehicle
license fee, the triple flip in the lieu sales tax, and supplemental property tax, apportioned to cities,
counties and special districts (excluding redevelopment agencies). The state is required to repay
this borrowing plus interest by June 30, 2013. After repayment of this initial borrowing, the
California legislature may consider only one additional borrowing within a ten -year period. The
amount of this borrowing pertaining to the District was $102,192.
See independent auditors' report.
.1
Total
Construction
Balance
Approved
Costs
to
Project Name
Contract
to Date
Complete
Construction services for Well 20
$ 349,037
$ 292,770
$ 56,267
Design, CM services for Well 20
79,820
19,644
60,176
Hydrogeological services Wells 1, 5 and 12 upgrade project
89,785
55,566
34,219
Parts and supplies for Wells 1, 5 and 12 upgrade project
222,528
171,064
51,464
Parts and supplies for Wells 1, 5 and 12 upgrade project
51,249
50,889
360
Parts and supplies for Wells 1, 5 and 12 upgrade project
27,880
-
27,880
Design services for Highland Booster Station replacement
561,533
490,000
71,533
Design services for Anaheim Intertie Project
26,100
20,000
6,100
Consultant serves for Sewer Master Plan
300,210
116,165
184,045
18.195.021
16.159.247
2A35.774
Litigation:
In November 2009, a series of wildfires, also known as the Yorba Linda - Corona Fire by the news
media, or Triangle Complex Fire, spread across the communities of Corona, Chino Hills, Yorba
Linda, Anaheim Hills, and Brea in Orange and Riverside County, California, and also spread to
Diamond Bar in Los Angeles County. The fire burned about 30,305 acres, destroyed about
200 structures, and forced the evacuations of about 7,000 homes. There are claims being asserted
against the District by homeowners and others damaged by the fires. As a member of ACWA JPIA
(see Note 10), these claims are currently handled by the JPIA's legal counsel. The District's
management believes the ultimate outcome of these claims will be not exceed the District's
insurance coverage amounts.
12. PROPOSITION IA BORROWINGS BY THE STATE OF CALIFORNIA:
Under the provisions of Proposition I and as part of the 2009 -2010 budget package passed by the
California state legislature on July 28, 2009, the State of California borrowed 8% of the amount of
property tax revenue, including those property taxes associated with the in -lieu motor vehicle
license fee, the triple flip in the lieu sales tax, and supplemental property tax, apportioned to cities,
counties and special districts (excluding redevelopment agencies). The state is required to repay
this borrowing plus interest by June 30, 2013. After repayment of this initial borrowing, the
California legislature may consider only one additional borrowing within a ten -year period. The
amount of this borrowing pertaining to the District was $102,192.
See independent auditors' report.
.1
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
12. PROPOSITION IA BORROWINGS BY THE STATE OF CALIFORNIA (CONTINUED):
The borrowing by the State of California was recognized as a receivable in the accompanying
financial statements. It is reported as part of accounts receivable - property taxes.
13. RESTATEMENT OF NET ASSETS:
Net assets at July 1, 2009 was restated as follows:
Net assets, July 1, 2009, as originally reported
To adjust construction in progress for
unrecorded developers contributions
To adjust construction in progress to delete capitalized
overhead that should have been expensed
To adjust construction in progress to delete capitalized
costs that should have been expensed
To remove capital assets disposed in prior years
To adjust accumulated depreciation on construction in progress
reclassified to utility plant
To adjust compensated absences for additional accrual
for accumulated sick leave
Net assets, July 1, 2009, as restated
See independent auditors' report.
-41-
$ 150,119,614
2,096,695
(1,515,071)
(324,094)
(99,875)
(248,008)
(609,948)
149.419.313
This page intentionally left blank
-42-
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFIT PLAN
SCHEDULE OF FUNDING PROGRESS
-43-
YORBA LINDA WATER DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
For the year ended June 30, 2010
OTHER POST - EMPLOYMENT BENEFIT PLAN
SCHEDULE OF FUNDING PROGRESS
Retiree Health Plan
See independent auditors' report and notes to basic financial statements.
..
Actuarial Value
Unfunded
Annual
UL as a
Actuarial
Accrued
of Assets
Liability
Funded
Covered
Percentage
Valuation
Liability
(AVA)
(UL)
Ratio
Payroll
of Payroll
Date
(a)
(b)
(a) - (b)
(b) /(a)
(c)
[(a)- (b)] /(c)
06/01/09
$ 1,740,127
$ -
$ 1,740,127
0.00%
$ 4,983,653
34.92%
See independent auditors' report and notes to basic financial statements.
..
SUPPLEMENTARY INFORMATION
-45-
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF NET ASSETS
June 30, 2010
ASSETS Water Sewer Totals
CURRENT ASSETS:
UNRESTRICTED ASSETS:
Cash and cash equivalents
Accounts receivable - water and sewer services
Accounts receivable - property taxes
Accrued interest receivable
Prepaid expenses and deposits
Inventory
TOTAL UNRESTRICTED ASSETS
RESTRICTED ASSETS:
Cash and cash equivalents
Accrued interest receivable
TOTAL RESTRICTED ASSETS
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Bond issuance costs
Capital assets (Note 5):
Non - depreciable
Depreciable, net of accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
See independent auditors' report.
-46-
$ 6,850,711 $
1,835,853
$ 8,686,564
3,742,266
181,288
3,923,554
120,976
-
120,976
20,251
1,997
22,248
275,088
(2,064)
273,024
233,588
-
233,588
11,242,880
2,017,074
13,259,954
26,907,082
-
26,907,082
1,867
-
1,867
26,908,949
-
26,908,949
38,151,829
2,017,074
40,168,903
785,655 - 785,655
23,440,046
574,788
24,014,834
132,605,574
23,701,741
156,307,315
156,831,275
24,276,529
181,107,804
194,983,104
26,293,603
221,276,707
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF NET ASSETS
(CONTINUED)
June 30, 2010
LIABILITIES
Water
Sewer
Totals
CURRENT LIABILITIES:
PAYABLE FROM UNRESTRICTED CURRENT ASSETS:
Accounts payable
$ 5,547,859
$ (11,011)
$ 5,536,848
Accrued expenses
125,727
-
125,727
Compensated absences
262,722
-
262,722
Customer and construction deposits
171,906
460,281
632,187
Deferred revenue
480,602
-
480,602
TOTAL PAYABLE FROM
UNRESTRICTED CURRENT ASSETS
6,588,816
449,270
7,038,086
PAYABLE FROM RESTRICTED ASSETS:
Accrued interest payable
491,440
-
491,440
Certificates of Participation - current portion
855,000
-
855,000
TOTAL PAYABLE FROM RESTRICTED ASSETS
1,346,440
-
1,346,440
TOTAL CURRENT LIABILITIES
7,935,256
449,270
8,384,526
LONG -TERM LIABILITIES (LESS CURRENT PORTION):
Deferred annexation revenue
14,090,105
-
14,090,105
Compensated absences
788,166
-
788,166
Other post - employment benefit (OPEB) liability
215,200
21,283
236,483
Certificates of Participation
43,210,104
-
43,210,104
TOTAL LONG -TERM
LIABILITIES (LESS CURRENT PORTION)
58,303,575
21,283
58,324,858
TOTAL LIABILITIES
66,238,831
470,553
66,709,384
NET ASSETS:
Invested in capital assets, net of related debt
122,600,593
24,276,529
146,877,122
Restricted
15,797,432
-
15,797,432
Unrestricted
(95653,752)
155465521
(85107,231)
TOTAL NET ASSETS
$ 128,744,273
$ 25,823,050
$ 154,567,323
See independent auditors' report.
-47-
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
For the year ended June 30, 2010
OPERATING REVENUES:
Water sales
Sewer revenues
Other operating revenues
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Variable water costs
Personnel services
Supplies and services
Depreciation and amortization
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES (EXPENSES):
Property taxes - debt service
Investment income
Interest expense
Other nonoperating revenues
Other nonoperating expenses
TOTAL NONOPERATING REVENUES (EXPENSES)
NET LOSS BEFORE
CAPITAL CONTRIBUTIONS
CAPITAL CONTRIBUTIONS
CHANGES IN NET ASSETS
NET ASSETS - BEGINNING OF YEAR, AS RESTATED
NET ASSETS - END OF YEAR
See independent auditors' report.
-48-
Water
$ 22,141,731
455,507
Sewer Totals
$ - $ 22,141,731
1,275,979 1,275,979
116396 571,903
22,597,238
1,392,375
23,989,613
10,688,318
-
10,688,318
5,863,006
814,751
6,677,757
3,228,241
347,906
3,576,147
4,561,701
592,190
5,153,891
24,341,266
1,754,847
26,096,113
(1,744,028)
(362,472)
(2,106,500)
1,269,441
-
1,269,441
248,882
19,360
268,242
(1,169,955)
(543)
(1,170,498)
301,888
29,339
331,227
(148,476)
(2,824)
(151,300)
501,780
45,332
547,112
(1,242,248)
(317,140)
(1,559,388)
5,973,683
733,715
6,707,398
4,731,435
416,575
5,148,010
124,012,838
25,406,475
149,419,313
$ 128,744,273
$ 25,823,050
$ 154,567,323
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF CASH FLOWS
For the year ended June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
Cash payments to employees for salaries and wages
Cash payments to suppliers of goods and services
NET CASH PROVIDED BY OPERATING ACTIVITIES
Water Sewer Totals
$ 21,219,512 $ 1,369,694 $ 22,589,206
(5,849,493) (812,435) (6,661,928)
(13,711,673) (389,959) (14,101,632)
1,658,346 167,300 1,825,646
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Proceeds from property taxes and assessments 1,171,251 1,954 1,173,205
Other revenue 301,170 32,221 333,391
Other expenses (113,118) (2,824) (115,942)
NET CASH PROVIDED BY
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Property taxes received for debt service
Proceeds from capital contributions
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Principal paid on long -term liability
Interest paid on long -term liability
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale /purchase of investments, net
Interest and investment earnings
NET CASH PROVIDED
BY INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS - END OF YEAR
See independent auditors' report.
-49-
1,359,303 31,351 1,390,654
4,443
- 4,443
123,415
7,204 130,619
(13,107,653)
(397,655) (13,505,308)
4,063
- 4,063
(825,000)
- (825,000)
(1,991,168)
(543) (1,991,711)
(15,791,900) (390,994) (16,182,894)
11,735,138 936,808 12,671,946
240,473 17,703 258,176
11,975,611 954,511 12,930,122
(798,640) 762,168 (36,472)
34,556,433 1,073,685 35,630,118
$ 33,757,793 $ 1,835,853 $ 35,593,646
(Continued)
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF CASH FLOWS
(CONTINUED)
For the year ended June 30, 2010
NONCASH INVESTING, CAPITAL AND
RELATED FINANCING ACTIVITIES:
Amortization related to long -term debt
Capital contributions
See independent auditors' report.
-50-
$ 20,988 $ - $ 20,988
$ 5,551,623 $ 726,511 $ 6,278,134
Water
Sewer
Totals
RECONCILIATION OF OPERATING LOSS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating loss
$
(1,744,028)
$
(362,472)
$
(2,106,500)
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation
4,561,701
592,190
5,153,891
Changes in operating assets and liabilities:
(Increase) decrease in assets:
Accounts receivable
(1,342,774)
(16,021)
(1,358,795)
Inventory
49,111
-
49,111
Prepaid expenses and other deposits
66,684
4,953
71,637
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
54,190
(75,484)
(21,294)
Accrued salaries and wages
(39,938)
(8,914)
(48,852)
Accrued other post - employment benefits (OPEB) liability
104,479
11,230
115,709
Accrued compensated absences
(51,028)
-
(51,028)
Customer and other deposits
(51)
21,818
21,767
Total adjustments
3,402,374
529,772
3,932,146
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
1,658,346
$
167,300
$
1,825,646
CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION:
Unrestricted
$
6,850,711
$
1,835,853
$
8,686,564
Restricted
26,907,082
-
26,907,082
TOTAL CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION
$
33,757,793
$
1,835,853
$
35,593,646
NONCASH INVESTING, CAPITAL AND
RELATED FINANCING ACTIVITIES:
Amortization related to long -term debt
Capital contributions
See independent auditors' report.
-50-
$ 20,988 $ - $ 20,988
$ 5,551,623 $ 726,511 $ 6,278,134
YORBA LINDA WATER DISTRICT
SCHEDULE OF OPERATING EXPENSES BY COST CENTER
AND NATURE OF EXPENSES FOR WATER AND SEWER
For the year ended June 30, 2010
OPERATING EXPENSES:
Variable Water Costs:
Imported water
OCWD replenishment assessment
Fuel and power /pumping
MWD connection charge
Total Variable Water Costs
Personnel Services:
Unit salaries
Management, supervisor and confidential salaries
Fringe benefits
Director's fees
Salaries - other
Total Personnel Services
Supplies and Services:
Maintenance
Contractual services
Insurance
Data processing
Communications
Vehicle expense
Professional services
Utilities
Office expense
Training
Dues and memberships
Travel and conferences
Noncapital equipment
Bad debt expense
Recreation committee
Other
Total Supplies and Services
TOTAL OPERATING EXPENSES
See independent auditors' report.
-51-
Water
Sewer
Totals
$ 6,727,831
$ -
$ 6,727,831
2,435,207
-
2,435,207
1,052,148
-
1,052,148
473,132
-
473,132
10,688,318
-
10,688,318
2,673,364
421,197
3,094,561
1,462,164
124,597
1,586,761
1,671,134
245,101
1,916,235
45,797
3,907
49,704
10,547
19,949
30,496
5,863,006
814,751
6,677,757
647,209
29,223
676,432
966,724
103,409
1,070,133
204,884
18,229
223,113
70,032
9,977
80,009
282,591
27,331
309,922
243,904
38,585
282,489
398,636
75,029
473,665
105,003
10,385
115,388
31,158
2,854
34,012
35,696
4,185
39,881
29,740
3,009
32,749
13,971
1,305
15,276
104,782
12,281
117,063
34,952
6,660
41,612
2,968
294
3,262
55,991
5,150
61,141
3,228,241
347,906
3,576,147
$ 19,779,565 $ 1,162,657 $ 20,942,222
YORBA LINDA WATER DISTRICT
SCHEDULE OF CAPITAL ASSETS
For the year ended June 30, 2010
Land, Mineral and Water Rights:
Land
Water rights
Mineral rights
Land rights and easements
Total Land, Mineral and Water Rights
Source of Supply:
Wells
MWD connection
Total Source of Supply
Pumping Plant:
Structures and improvements
Equipment
Total Pumping Plant
Water Treatment Plant:
Structures and improvements
Equipment
Total Water Treatment Plant
Transmission and Distribution Plant:
Mains
Reservoirs and tanks
Service and meter installation
Fire hydrants
Meters
Fire mains
Structures and improvements
Total Transmission and Distribution Plant
General Plant:
Structures and improvements
Transportation equipment
Power operated equipment
Communication equipment
Computer equipment
Office furniture
Tools, shops and garage equipment
Other
Store equipment
Total General Plant
Construction in Progress
Total Capital Assets
See independent auditors' report.
-52-
Water Sewer Totals
$ 138,629 $ - $ 138,629
86,300 - 86,300
63,650 - 63,650
385 58,526 58,911
288,964 58,526 347,490
5,211,307 - 5,211,307
517,275 (6,699) 510,576
5,728,582 (6,699) 5,721,883
9,387,884 - 9,387,884
7,450,696 29,240 7,479,936
16,838,580 29,240 16,867,820
1,473,626
1,150,255
2,623,881
1,473,626
1,150,255
2,623,881
66,380,759
28,062,615
94,443,374
43,614,586
-
43,614,586
5,366,832
2,390,450
7,757,282
6,244,986
-
6,244,986
8,669,133
-
8,669,133
717,746
-
717,746
1,844,138
-
1,844,138
132,838,180
30,453,065
163,291,245
13,160,535
-
13,160,535
1,490,658
971,316
2,461,974
542,239
-
542,239
565,557
-
565,557
448,484
-
448,484
1,188,942
-
1,188,942
62,061
-
62,061
4,650
-
4,650
48,889
-
48,889
17,512,015
971,316
18,483,331
23,151,082
516,262
23,667,344
$ 198,981,284 $ 32,021,710 $ 231,002,994
STATISTICAL SECTION
-53-
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-54-
YORBA LINDA WATER DISTRICT
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2010
This part of the District's comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements and the note disclosures say
about the government's overall financial health.
Contents: Pages
Financial Trends these schedules contain trend information to help the reader
understand how the District's financial performance and well -being have
changed over time. 56
Revenue Capacity these schedules contain information to help the reader
assess the District's most significant local revenue source, the property tax. 58
Debt Capacity these schedules present information to help the reader assess
the affordability of the District's current levels of outstanding debt and the
District's ability to issue additional debt in the future. 60
Demographic and Economic Information these schedules offer demographic
and economic indicators to help the reader understand the environment within
which the District's financial activities take place. 62
Operating Information these schedules contain service and infrastructure data
to help the reader understand how the information in the District's financial
report relates to the services the District provides and the activities it
performs. 64
-55-
Changes in Net Assets:
Operating Revenues
Water Sales
Sewer Revenues
Other Operating Revenue
Operating Expenses
Yorba Linda Water District
Changes in Net Assets
Last Ten Fiscal Years
Fiscal Year
2010 2009 2008
$ 22,141,731 $ 19,626,738 $ 19,470,109
1,275,979 1,259,723 1,247,907
571,903 439,302 380,175
Variable Water Costs
10,688,318
10,859,328
10,516,507
Personnel Services
6,677,757
6,498,959
5,751,384
Supplies and Services
3,576,147
4,151,058
4,361,512
Depreciation
5,153,891
4,167,958
3,572,726
Operating Loss
Non operating Revenue (Expenses)
Property Taxes
Investment Income
Interest Expense
Other Non operating Revenue
Other Non operating Expense
Total Non - Operating Revenue (Expense)
Net Income (Loss) Before Capital Contributions
Capital Contributions
Changes in Net Assets
Net Assets by Component:
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Net Assets
NOTE: GASB 34 implemented in 2002
SOURCE: YLWD Audited Financial Statements
(2,106,500)
(4,351,540)
(3,103,938)
1,269,441
1,283,521
1,263,656
268,242
689,108
1,508,193
(1,170,498)
(1,469,925)
(824,387)
331,227
479,911
270,429
(151,300)
(177,553)
(133,604)
547,112
805,062
2,084,287
(1,559,388)
(3,546,478)
(1,019,651)
6,707,398
4,363,527
4,100,051
$ 5,148,010
$ 817,049
$ 3,080,400
$ 146,877,122
$ 141,514,024
$ 139,677,663
15,797,432
14,063,802
14,523,549
(8,107,231)
(6,158,513)
(4,898,647)
$ 154,567,323
$ 149,419,313
$ 149,302,565
-56-
$ 18,944,233
806,897
393,285
$ 17,017,275
778,275
382,917
Fiscal Year
$ 14,533,021 $ 14,138,952
750,771 763,528
427,430 385,241
$ 12,128,715
545,119
177,966
$ 12,080,445
525,188
174,572
10,703,037
8,930,535
7,920,218
8,405,858
7,510,409
7,018,095
5,276,878
4,635,464
4,294,020
3,903,396
3,304,878
2,874,817
3,395,303
2,877,288
2,699,842
2,345,991
2,111,993
1,762,580
3,445,868
2,923,288
2,578,420
2,498,265
2,305,286
2,073,348
(2,676,671)
(1,188,108)
(1,781,278)
(1,865,789)
(2,380,766)
(948,635)
1,186,441
335,075
252,663
1,005,859
3,304,314
3,247,591
2,180,067
1,425,663
638,235
342,554
549,093
914,100
(468,087)
(472,163)
(565,581)
(484,895)
(214,842)
(291,352)
455,067
534,385
416,778
642,358
155,814
277,198
(138,501)
(336,649)
(179,526)
(296,528)
(282,039)
(311,231)
3,214,987
1,486,311
562,569
1,209,348
3,512,340
3,836,306
538,316
298,203
(1,218,709)
(656,441)
1,131,574
2,887,671
6,913,095
26,026,524
6,701,629
2,184,681
11,419,097
1,884,633
$ 7,451,411
$ 26,324,727
$ 5,482,920
$ 1,528,240
$ 12,550,671
$ 4,772,304
$ 121,317,296
$ 106,376,683
$ 84,000,773
$ 74,338,841
$ 80,268,884
$ 67,026,121
23,089,201
22,274,814
23,196,485
25,140,038
16,774,957
16,593,197
1,815,668
10,119,257
5,248,769
7,484,228
8,391,026
9,264,878
$ 146,222,165
$ 138,770,754
$ 112,446,027
$ 106,963,107
$ 105,434,867
$ 92,884,196
-57-
Yorba Linda Water District
Number of Connections
Current and Nine Years Ago
25,000
20,000
15,000 Other
Industrial
10,000 Residential
Residential
5,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Direct Rate
(Billing Unit)
$ 1.03
1.13
1.33
1.33
1.48
1.57
1.57
1.79
2.52
2.52
SOURCE: YLWD Billing System
-58-
Single
Family
Multi - Family
Commercial/
Irrigation/
Fiscal Year
Residential
Residential
Industrial
Other
2001
19,518
238
976
803
2002
19,915
234
1,056
933
2003
20,383
225
1,050
865
2004
20,914
225
849
831
2005
20,773
217
842
828
2006
21,300
217
847
828
2007
21,451
228
792
915
2008
21,580
228
840
904
2009
21,672
228
831
909
2010
21,846
228
837
933
NOTE:
* $1.48 was approved January 1, 2005
25,000
20,000
15,000 Other
Industrial
10,000 Residential
Residential
5,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Direct Rate
(Billing Unit)
$ 1.03
1.13
1.33
1.33
1.48
1.57
1.57
1.79
2.52
2.52
SOURCE: YLWD Billing System
-58-
Yorba Linda Water District
Ten Largest Customers
Current and Nine Years Ago
FY 2008+
FY 2002*
Customer Name
Business Type
1
City of Yorba Linda
Government
2
Placentia Yorba Linda USD
Government
3
Yorba Linda Villages
Homeowner's Assoc.
4
Rancho Dominquez Assoc.
Homeowner's Assoc.
5
Archstone Apts
Apartment Complex
6
Cal Water
Manufacturer
7
Tac West
Manufacturer
8
Placentia Linda Hospital
Hospital
9
Advanced Management
Apartment Complex
10
St Francis of Assisi
Private School
FY 2002*
Note: + Most recent available data
* Latest available data
SOURCES: City of Yorba Linda CAFR
YLWD Billing Department
-59-
Annual Revenues % of Total
$ 1,162,249.51
Customer Name
Business Type
1
City of Yorba Linda
Government
2
Saba Petroleum
Manufacturer
3
Tac West Inc
Manufacturer
4
St Francis of Assissi
Private School
5
Shigemi Muranaka
Nursery Retail
7
Placentia Unified School
Government
6
Sunset Tropicals
Nursery Retail
8
Costco
Warehouse Retail
9
Excell Circuits
Manufacturer
10
YL Country Club
Private Club
Note: + Most recent available data
* Latest available data
SOURCES: City of Yorba Linda CAFR
YLWD Billing Department
-59-
Annual Revenues % of Total
$ 1,162,249.51
5.51%
27,162.94
0.13%
18,409.96
0.09%
13,001.84
0.06%
12,303.44
0.06%
9,493.13
0.04%
9,381.26
0.04%
8,933.78
0.04%
8,893.10
0.04%
8,453.53
0.04%
$ 1,278,282.49
6.06%
Annual Revenues % of Total
$ 1,915,251.67
14.99%
175,921.20
1.38%
98,367.66
0.77%
97,005.47
0.76%
78,760.00
0.62%
31,609.61
0.25%
30,968.79
0.24%
30,308.28
0.24%
27,839.87
0.22%
25,743.78
0.20%
$ 2,511,776.33
19.65%
Yorba Linda Water District
Ratio of Outstanding Debt
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$2,500
Composition of Debt
0 0 0 0 0 0 0 0 0°
0 0 0 0 0 0 0 0 0 0
Debt per Connection
Participation
Loan
Bonds
$2,000
$1,500
$1,000
$500
$- _ _
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
SOURCE: YLWD Audited Financial Statements
-60-
Total
General
Certificates
As a Share of
Fiscal
Obligation
OCWD
of
Per
Per
Personal
Year
Bonds
Loan
Participation
Debt
Connection
Capita
Income
2001
$ 7,360,216
$ 192,292
$ -
$ 7,552,508
$ 321
$ 87
0.13%
2002
5,742,169
171,048
-
5,913,217
252
68
0.09%
2003
3,671,446
149,061
-
3,820,507
163
44
0.05%
2004
1,590,000
-
10,384,239
11,974,239
510
138
0.16%
2005
-
-
10,000,078
10,000,078
426
115
0.13%
2006
-
-
9,873,717
9,873,717
420
114
0.12%
2007
-
-
10,540,139
10,540,139
449
121
0.12%
2008
-
-
45,502,080
45,502,080
1,936
523
0.50%
2009
-
-
44,911,092
44,911,092
1,911
517
0.44%
2010
-
-
44,065,104
44,065,104
1,875
507
0.45%
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$2,500
Composition of Debt
0 0 0 0 0 0 0 0 0°
0 0 0 0 0 0 0 0 0 0
Debt per Connection
Participation
Loan
Bonds
$2,000
$1,500
$1,000
$500
$- _ _
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
SOURCE: YLWD Audited Financial Statements
-60-
Yorba Linda Water District
Debt Coverage
Last Ten Fiscal Years
NOTE: * Excludes depreciation and debt service payments
** Includes capitalized interest reduction of $94, $581, and $787 (in thousands)
for the years 2008, 2009 and 2010; respectively.
SOURCE: YLWD Audited Financial Statements
-61-
Debt Service
Fiscal
Operating &
Net
Coverage
Year
Revenues
Maint. Costs
Revenues
Principal
Interest **
Total
Ratio
2001
$ 15,617
$ 11,294
$ 4,323
$ 2,011
$ 376
$ 2,387
1.81
2002
16,568
11,759
4,809
2,086
305
2,391
2.01
2003
16,215
12,873
3,342
2,172
229
2,401
1.39
2004
16,471
14,428
2,043
2,263
148
2,411
0.85
2005
16,178
14,230
1,948
1,760
299
2,059
0.95
2006
19,563
16,009
3,554
200
473
673
5.28
2007
23,036
18,703
4,333
205
469
674
6.43
2008
22,822
19,829
2,993
210
370
580
5.16
2009
22,514
20,604
1,910
570
1,577
2,147
0.89
2010
24,417
19,928
4,489
825
1,194
2,019
2.22
NOTE: * Excludes depreciation and debt service payments
** Includes capitalized interest reduction of $94, $581, and $787 (in thousands)
for the years 2008, 2009 and 2010; respectively.
SOURCE: YLWD Audited Financial Statements
-61-
Yorba Linda Water District
Demographics
Last Ten Fiscal Years
YLWD
Year Population ** City of YL Population
Personal Income
Personal Income
per Capita
2001
69,084
60,073 $
4,761,072,547 $
68,917
2002
70,566
61,362
5,081,187,350
72,006
2003
72,080
62,678
6,025,361,496
83,593
2004
73,663
64,055
6,435,285,575
87,361
2005
75,189
65,382
6,699,301,248
89,099
2006
76,817
66,797
7,150,485,256
93,085
2007
78,090
67,904
7,623,582,080
97,626
2008
78,559
68,312
8,179,815,504
104,123
2009
80,209
69,747
9,465,109,914
118,006
2010
81,893
71,211
9,224,696,122
112,643
County of Orange
Year
Population Unemployment Rate
Personal Income
Personal Income per
2001
N/A + 4.0%
N/A
N/A
2002
2,940,743 5.0% $
111,750,294
$ 38,001
2003
2,983,731 5.0%
117,722,484
39,455
2004
3,019,889 4.8%
125,670,056
41,614
2005
3,047,054 4.3%
133,031,819
43,659
2006
3,072,336 3.2%
143,949,044
46,853
2007
3,098,121 3.9%
151,039,900
48,752
2008
3,121,251 5.2%
155,459,600
49,807
2009
3,139,017 9.0%
155,459,600
49,525
2010
3,158,479 9.8% *
151,510,926
47,970
NOTE:
* As of July 2010
+ Information was not tracked by the County prior to
implementation of GASB No. 34 in FY 2001 -2002
** Based on City of Yorba Linda population, plus an additional
15%
of estimated population for customers outside of the City
SOURCES: City of Yorba Linda CAFR
County of Orange CAFR
State of California, Employment Development Department
State of California, Department of Finance
YLWD Billing System
-62-
Employer ^
Viasys Respiratory Care, Inc.
Nobel Biocare USA, Inc.
Costco Wholesale Corp.
City of Yorba Linda
Vons
Kohl's Inc.
Best Buy
Sunrise Retirement Homes
Office Solutions
Cobra Engineering
Total
Yorba Linda Water District
Ten Largest Employers
Current and Four Years Ago
2008*
l % of Total
Employees Labor Force
389
1.19 %
328
0.93 %
276
0.78 %
194
0.55 %
165
0.47 %
158
0.45 %
129
0.37 %
126
0.36 %
92
0.26%
80
0.23 %
1,937
5.6 %
NOTE: * Most current available data
+ Latest available data
The Placentia- Yorba Linda Unified School District has 2,500 employees and
serves the entire communities of Yorba Linda and Placentia, and also serves
parts of the cities of Brea, Anaheim and Fullerton. YLWD cannot provide the
number of employees working within the boundaries of Yorba Linda.
Source: City of Yorba Linda CAFR
-63-
2006+
% of Total
Employees I Labor Force
359
1.02 %
323
0.92 %
204
0.58 %
180
0.51 %
167
0.48 %
145
0.41 %
135
0.38 %
120
0.34%
98
0.28 %
0
0.00%
1,731
4.9 %
Yorba Linda Water District
Number of Employees
Last Ten Fiscal Years
Full Time Equivalent Employees by Department
Department
Fiscal Human
Year Administration Engineering Finance Resources IT Operations Total
2001
2
10
2002
2
10
2003
2
11
2004
3
12
2005
3
13
2006
4
14
2007
4
13
2008
4
13
2009
4
13
2010
5
13
10 1
1
27
51
10 1
1
29
53
10 1
2
29
55
10 1
2
32
60
11 1
3
31
62
13 3
3
28
65
15 3
3
32
70
15 3
6
33
74
16 3
6
33
75
16 3
7
32
76
80
70
60
50 Operations
IT
40 Resources
Finance
30 Engineering
Administration
20
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
NOTE: * Number of employees in each department are authorized, funded and filled positions.
SOURCE: YLWD Human Resources Department
-64-
Fiscal
VPar
Yorba Linda Water District
Operating and Capacity Indicators
Last Ten Fiscal Years
Miles of Water
Mains Installed*
Yearly Water Average
Production (MG) Production (MGD)
2001
2.40
6,996
19.2
2002
4.81
7,548
20.7
2003
0.78
7,796
21.4
2004
3.64
7,863
21.5
2005
3.64
7,042
19.3
2006
2.52
7,505
20.6
2007
9.72
8,360
22.9
2008
9.72
8,027
22.0
2009
9.72
7,590
20.8
2010
9.72
6,569
18.0
Fiscal
Number of
Number of
Number of
Year
Booster Pumps
Reserviors
Field Service Calls
2001
9
8
1,534
2002
9
9
1,535
2003
11
10
1,727
2004
11
10
1,833
2005
11
10
1,460
2006
11
10
1,484
2007
12
11
1,565
2008
12
11
1,943
2009
12
11
1,674
2010
12
13
1,640
MG - Millions of Gallons
MGD - Millions of Gallons per Day
NOTE: * Miles of Water Main estimated
SOURCES: YLWD Asset Management Plan 2010
YLWD Operations Department
-65-
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
MICHAEL R. LUDIN, CPA
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT CALLANAN, CPA
5 CORPORATE PARK, SUITE 100 *PHILIP H. HOLTKAMP, CPA
IRVINE, CALIFORNIA 92606 -5165 *THOMAS CHR OEDER P A
J.
*HARVEY J. SCREDE, CPA
(949) 399 -0600 • FAX (949) 399 -0610 KENNETH R. AMES, CPA
www.diehlevans.com WILLIAM C. PENTZ, CPA
*A PROFESSIONAL CORPORATION
September 15, 2010
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Board of Directors
Yorba Linda Water District
Placentia, California
We have audited the basic financial statements of the Yorba Linda Water District (the District) as of
and for the year ended June 30, 2010, and have issued our report thereon dated September 15, 2010.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
District's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the District's financial statements will not be prevented, or detected and corrected on a
timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose described
in the first paragraph of this section and was not designed to identify all deficiencies in internal control
over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We
did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
-1-
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008 -2389 ESCONDIDO, CALIFORNIA 92025 -2598
(760) 729 -2343 • FAX (760) 729 -2234 (760) 741 -3141 • FAX (760) 741 -9890
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free of
material misstatements, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Yorba Linda Water District Directors
and management of the Yorba Linda Water District and is not intended to be and should not be used by
anyone other than these specific parties.
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
MICHAEL R. LUDIN, CPA
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT CALLANAN, CPA
5 CORPORATE PARK, SUITE 100 *PHILIP H. HOLTKAMP, CPA
IRVINE, CALIFORNIA 92606 -5165 *THOMAS CHR OEDER P A
J.
*HARVEY J. SCREDE, CPA
(949) 399 -0600 • FAX (949) 399 -0610 KENNETH R. AMES, CPA
www.diehlevans.com WILLIAM C. PENTZ, CPA
*A PROFESSIONAL CORPORATION
September 15, 2010
Board of Directors
Yorba Linda Water District
Placentia, California
We have audited the financial statements of the Yorba Linda Water District for the year ended
June 30, 2010, and have issued our report thereon dated September 15, 2010. Professional standards
require that we provide you with information about our responsibilities under generally accepted
auditing standards, as well as certain information related to the planned scope and timing of our audit.
We have communicated such information in our engagement letter dated March 27, 2008 and during
our planning meeting on August 9, 2010. Professional standards also require that we communicate to
you the following information related to our audit.
Significant Audit Findings:
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the Yorba Linda Water District are described in Note 2 to the
financial statements. No new accounting policies were adopted and the application of existing
accounting policies was not changed during the year ended June 30, 2010. We noted no transactions
entered into by the Yorba Linda Water District during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in
the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected.
OTHER OFFICES AT:
-1-
2965 ROOSEVELT STREET
CARLSBAD, CALIFORNIA 92008 -2389
(760) 729 -2343 • FAX (760) 729 -2234
613 W. VALLEY PARKWAY, SUITE 330
ESCONDIDO, CALIFORNIA 92025 -2598
(760) 741 -3141• FAX (760) 741-9890
Significant Audit Findings (Continued):
Qualitative Aspects of Accounting Practices (Continued):
The most sensitive estimates affecting the financial statements were:
a. Management's estimate of the fair market value of investments which is based on market
values by outside sources.
b. The estimated useful lives of capital assets for depreciation purposes which are based on
industry standards.
c. The annual required contribution for the District's Other Post - Employment Benefits was
prepared by an outside consultant.
We evaluated the key factors and assumptions used to develop these estimates in determining that they
were reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosure affecting the financial statements was reported
in Note 7 to the financial statements regarding the annual required contribution and the actuarial
liability for the District's Other Post - Employment Benefits.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during
the audit, other than those that are trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were material,
either individually or in the aggregate, to each opinion unit's financial statements taken as a whole
Disagreements with Mana eg ment
For purposes of this letter, professional standards define a disagreement with management as a
financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that
could be significant to the financial statements or the auditors' report. We are pleased to report that no
such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated September 15, 2010.
-2-
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation
involves application of an accounting principle to the Yorba Linda Water District's financial
statements or a determination of the type of auditor's opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to determine
that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the Yorba Linda Water District's
auditors. However, these discussions occurred in the normal course of our professional relationship
and our responses were not a condition to our retention.
This information is intended solely for the use of the Board of Directors and management of the Yorba
Linda Water District and is not intended to be and should not be used by anyone other than these
specified parties.
) I L/�, Cv c�,) a, CL 6:ri, � 0 L L Ili
ITEM NO. 11.2
AGENDA REPORT
Meeting Date: October 14, 2010
Subject: Finance - Accounting Committee
(Sum merfield /Collett) Alternate: Mills
• Minutes of meeting held October 11, 2010 at 4:00 p.m. (To be provided at the
meeting.)
• Meeting scheduled November 8, 2010 at 4:00 p.m.
ATTACHMENTS:
Name: Description: Type:
101110 FA - Minutes.doc FA Mtg Minutes 10/11/10 Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE -ACCOUNTING COMMITTEE MEETING
October 11, 2010
A meeting of the Finance - Accounting Committee was called to order by Director Collett
at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E
Miraloma Ave, Placentia CA 92870.
COMMITTEE
Director John W. Summerfield, Chair
Director Ric Collett
STAFF
Ken Vecchiarelli, General Manager
Stephen Parker, Finance Director
OTHER ATTENDEES
Nitin Patel, CPA — Partner, Diehl Evans & Company, LLP
Daphne Munoz, CPA — Manager, Diehl Evans & Company, LLP
1. PUBLIC COMMENTS
None.
2. ACTION CALENDAR
2.3. Submission of Audit Reports (This item was considered first)
Mr. Vecchiarelli indicated that this was the first Comprehensive Annual
Financial Report (CAFR) that the District had completed. Mr. Parker
identified the three deliverables to the Committee from the annual audit
and deferred the discussion to Mr. Patel.
Mr. Patel discussed the Report on Internal Control. He mentioned that
there were no comments on it in the current year. He referred to one of the
findings from the previous year — closing out old jobs on the CIP listing as
having been addressed, and resulting in a prior period adjustment on the
CAFR. Mr. Patel went through the disclosures on the Communication To
Those In Governance letter. He indicated that the disclosures in the letter
were basically boilerplate with nothing special occuring in the current year.
Mr. Patel then discussed the CAFR and explained that this first CAFR
reached a higher level of disclosure and prestige and could be
advantageous when issuing debt. He reviewed the auditors' opinion on
page 1 and 2 with the Committee and indicated some of the limitations of
an audit, which components of the CAFR were reviewed by Diehl, Evans
and Company, LLP, and explained that the current years' opinion issued
was an unqualified or "clean" opinion. He further discussed the
adjustments that related to prior years that were corrected in the current
year as detailed in footnote 13.
1
He then referred to the Combined Statement of Revenues, Expense and
Changes in Net Assets and pointed out that the District's net assets
increased by $5.1 million during the year ended June 30, 2010, which is a
positive indicator of the District's financial health and management. He
also noted that there was actually a net loss of $1.6 million prior to capital
contributions, and the reason net assets increased was related to
developer contributions of capital assets. On a less positive note, Mr.
Patel reported the District's unrestricted net assets continued to decline
from negative $6.2M to negative $8.1 M during the fiscal year ended June
30, 2010. Mr. Patel shared that he had not encountered another water
district with negative unrestricted net assets. The Committee discussed
what could be done to remedy this situation. Mr. Vecchiarelli explained
that funding additional reserves would definitely help improve this
indicator. The District has already made some improvements in this area
over previous years. The Committee recommended that staff submit the
audit reports to the Board of Directors to receive and file.
2.1. August 2010 Budget to Actual Results
Mr. Parker discussed the monthly budget to actual results. He noted that
water operating revenues are lower than expected due to lower water
consumption. Mr. Vecchiarelli explained that the current conservation rate
of over 21% is actually a 40% increase over the 15% conservation rate
that was budgeted for the current fiscal year. Mr. Parker shared that
variable water costs as a percentage of the yearly budget are higher than
operating revenues. Mr. Vecchiarelli shared that the same practice that
was used last year to save over $190,000 (purchasing water from
MWDOC aggressively prior to an upcoming rate increase) was being
utilized again in the current year. Ultimately, he explained, this would
result in lower water costs for the year, as less import water would have to
be purchased after the rate increase goes into effect. Mr. Parker shared
that other expenses and revenues were generally on target with budgeted
projections, and explained a couple of the more minor line items that
varied from budgeted expectations. The Committee received and filed the
August 2010 Budget to Actual Results.
2.2. August 2010 Monthly Investment Report
Mr. Parker presented the August monthly investment report and noted that
the vast majority of the money in CalTRUST's Money Market Account was
now transferred into their Short Term Account, which currently yields more
than twice the return and is still available within 1 day. He also reported
on transfers made between sewer funds (operating and reserves)
implementing recommendations consistent with the adopted financial
reserves policy. The Committee asked about the CalTRUST investment
program. Mr. Parker stated he was pleased with it and noted the benefits
of its ability to allow tracking of different reserve accounts. He also shared
the benefits of investing in a fund that has an average days to maturity of
over a year, yet still allows access to funds within a month. The
2
Committee received and filed the August 2010 Monthly Investment
Report.
3. DISCUSSION ITEMS
3.1. Future Agenda Items and Staff Tasks
None.
4. ADJOURNMENT
4.1. The Committee adjourned at 4:36 p.m. The next regular meeting of the
Finance - Accounting Committee will be held on November 8, 2010 at 4:00
p.m.
3
ITEM NO. 11.3
AGENDA REPORT
Meeting Date: October 14, 2010
Subject: Personnel -Risk Management Committee
(Collett /Hawkins) Alternate: Summerfield
• Minutes of meeting held October 12, 2010 at 4:00 p.m. (To be provided at the
meeting.)
• Meeting scheduled November 9, 2010 at 4:00 p.m.
ATTACHMENTS:
Name: Description: Type:
101210 PRM - Minutes.doc PRM Mtg Minutes 10/12/10 Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
PERSONNEL -RISK MANAGEMENT COMMITTEE MEETING
October 12, 2010
A meeting of the Personnel -Risk Management Committee was called to order by
Director Collett at 4:00 p.m. The meeting was held at the District's Administrative Office
at 1717 E. Miraloma Ave, Placentia CA 92870.
COMMITTEE STAFF
Director Ric Collett, Chair Ken Vecchiarelli, General Manager
Director Phil Hawkins Miguel Serna, Human Resources Analyst
1. PUBLIC COMMENTS
None.
2. ACTION CALENDAR
2.1. Proposed Authorized Positions Revision for FY 2010/2011
Staff presented a proposal to reclassify the Meter Services Representative
to a Meter Services Lead. This is a classification change with no salary
adjustment. The committee discussed the issue and supported the staff
recommendation, which will be presented to the Board Directors at the
meeting on October 14, 2010.
3. DISCUSSION ITEMS
3.1. Status of Recruitments and Authorized /Budgeted Positions
Staff gave an update on the current recruitment for the position of
Engineering Secretary. Staff also reported on three promotions in the
Maintenance Distribution Operator II classification and the hiring of a part-
time GIS Technician.
3.2. Status of Human Resources and Risk Management Activities
The committee reviewed and discussed the updated activities log. Staff
informed the committee of the three Automatic External Defibrillators
purchased and installed at various locations throughout the campus. In
addition, staff reported on employee events. A Hot Tap demonstration and
horseshoe competition was held on September 1, 2010 during an
employee luncheon. The finalists represented the District at OCWA's
Annual Picnic, which was held on September 15, 2010. The District will
hold an employee Health Benefits Fair on October 27, 2010. Staff also
reported on the coordination of five (5) health and wellness related
discussions presented through the Employee Assistance Program.
Forklift training was conducted on October 7, 2010. HR staff attended the
Public Employees Labor Relations Association of California (PELRAC)
one -day conference on October 7, 2010. Finally, staff reported the receipt
of $70,044.56 from ACWA -JPIA for reimbursement of the District's
expenses related to the Ohio and Villa Terrace water break incident of
March 27, 2010.
3.3. Future Agenda Items and Staff Tasks
None.
4. ADJOURNMENT
4.1. The Committee adjourned at 4:45 p.m. The next regular meeting of the
Personnel -Risk Management Committee will be held November 9, 2010 at
4:00 p.m.
2
ITEM NO. 11.4
AGENDA REPORT
Meeting Date: October 14, 2010
Subject: Planning- Engineering- Operations Committee
(Mills /Summerfield) Alternate: Beverage
Minutes of meeting held October 6, 2010 at 4:00 p.m.
Meeting scheduled November 4, 2010 at 4:00 p.m.
ATTACHMENTS:
Name: Description: Type:
100610 - PEO Minutes.doc PEO Mtg Minutes 10/06/10 Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
PLANNING - ENGINEERING - OPERATIONS COMMITTEE MEETING
October 6, 2010
A meeting of the Planning- Engineering- Operations Committee was called to order by
Director Mills at 4:00 p.m. The meeting was held at the District's Administrative Office
at 1717 E Miraloma Ave, Placentia CA 92870.
COMMITTEE
Director William R. Mills, Chair
Director John Summerfield
1. PUBLIC COMMENTS
None.
2. DISCUSSION ITEMS
STAFF
Ken Vecchiarelli, General Manager
Steve Conklin, Engineering Manager
Lee Cory, Operations Manager
2.1. Monthly Groundwater Production and Purchased Import Water Report.
Mr. Vecchiarelli reported that water demand for September was 0.7%
above that projected by staff and that overall, water demand is still 17.7%
below the conservation percentage established in July 2009. He also
reported that 65.1% of demands since July 2010 have been met with
imported water, which will be reduced later in the year when the higher
price for MWD water goes into effect. Mr. Vecchiarelli also noted that the
average monthly temperature of 70.8 degrees for September was lower
than the prior two years, and that monthly total water use was also lower.
2.2. Monthly Preventative Maintenance Program Report.
Mr. Cory reported on PM progress, noting that a new report format will be
developed that will provide more details on progress and will be expanded
to show PM progress on the District's 40 plus pressure - regulating stations.
He also noted that PM progress is not uniform for facilities; rather, the field
crews concentrate on one work element for greatest efficiency and then
move to another in later months. Mr. Vecchiarelli reported that in addition
to other tasks, field staff completed retrofitting of the District's 37 sampling
stations throughout the water system.
The Committee asked about the fire hydrant testing performed this date in
Hidden Hills. Mr. Vecchiarelli reported that the testing was successfully
completed, under the observation of a representative from the Orange
County Fire Authority and local, interested homeowners. He noted that
the data collected indicates that hydrant flows at all test sites exceeded
2,400 gallons per minute, in some areas over twice that amount. All areas
tested well in excess of the 1,500 gallons per minute per the fire code for
1
K�
4.
5.
single - family developments. The Committee asked that staff provide a
summary report of the testing and findings at the October 14 Board
meeting.
ACTION CALENDAR
3.1. Engineering Services for the 2010 Waterline Replacement Project.
Mr. Conklin reported that staff solicited proposals from five consulting
engineering firms for engineering design services for the replacement of
old District pipelines in eight locations. Information was provided to the
Committee showing the location of each site. Following discussion, the
Committee supported staff recommendation that the Board authorize
execution of an agreement with RBF Consulting, Inc., for a fee not to
exceed $219,309 for engineering design, bidding support and construction
management services for the project.
DISCUSSION ITEMS
4.1. Groundwater Producers Meeting Report
Mr. Conklin reported on the September 8, 2010 monthly meeting of the
groundwater producers. He reported that for the preparation of the
Program EIR for the proposed annexation by IRWD, Anaheim and YLWD
to OCWD, two proposals were received by OCWD, prepared by
Chambers Group and by Michael Brandman Associates. The proposal
review team of staff from IRWD, Anaheim, YLWD and OCWD
unanimously recommended the Brandman proposal based on staff
experience and qualifications, background and experience, and familiarity
with the project and issues. Negotiations are in progress between the
review team and Brandman on final scope and fee.
4.2. Status Report on Capital Projects in Progress
Mr. Conklin reported on the status of capital projects in planning, design
and construction.
4.3. Future Agenda Items and Staff Tasks.
None.
ADJOURNMENT
5.1. The meeting adjourned at 4:45
Planning- Engineering- Operations
2010 at 4:00 p.m.
2
p.m. The next regular meeting of the
Committee will be held November 4,
ITEM NO. 11.6
AGENDA REPORT
Meeting Date: October 14, 2010
Subject: MWDOC /OCWD Ad Hoc Committee
(Mills /Beverage) Alternate: Collett
Minutes of meeting held September 28, 2010 at 4:00 p.m.
Meeting scheduled November 23, 2010 was rescheduled to November 16,
2010 at 4:00 p.m.
ATTACHMENTS:
Description: Type:
092810 MWDOC OCWD - Minutes.doc MWDOC /OCWD Mtg Minutes 09/28/1 C Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
MWDOC AND OCWD AD HOC COMMITTEE MEETING
September 28, 2010
A meeting of the YLWD /MWDOC /OCWD Ad Hoc Committee was called to order at 4:00
p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma
Ave, Placentia CA 92870.
YLWD COMMITTEE MEMBERS
Director William R. Mills, Chair
Director Michael J. Beverage
MWDOC COMMITTEE MEMBERS
Director Brett Barbre
OCWD COMMITTEE MEMBERS
Director Roger Yoh
1. PUBLIC COMMENTS
None.
2. DISCUSSION ITEMS
YLWD STAFF
Ken Vecchiarelli, General Manager
MWDOC STAFF
Kevin Hunt, General Manager
OCWD STAFF
Mike Markus, General Manager
2.1. MWDOC Settlement Agreement
MWDOC Director Barbre reported on the status of the agreement and is
recommending a wait and see approach for the agencies he represents to
allow certain south county agencies to execute this agreement first. The
Committee discussed this consideration and the impacts of the agreement
to various agencies.
2.2. Results of MWDOC Strategic Review
Mr. Hunt presented a summary report of MWDOC's recent Strategic
Planning process and left Mr. Vecchiarelli a copy of the staff presentation.
2.3. Upgrade of MWD's OC -51 Connection
Director Barbre and Mr. Vecchiarelli reported on a meeting held prior to
the Ad Hoc Committee Meeting, attended by staff from MWDOC and
YLWD with Brett. The group discussed the purpose, intent and options for
improving the OC -51 connection. Staff is waiting for additional information
from MWD to determine the next step in the process.
iXlMLTiUJI ell M41 =-
Mr. Hunt reported on various MWD issues including their draft Integrated
resources Plan (IRP) and 2010 update of their Urban Water Management
Plan (UWMP).
2.5. Status of OCWD Annexation Process
Mr. Markus reported on the status and progress of the annexation
process. OCWD requested proposals for preparation of the CEQA
documentation and is working closely with the annexation agencies to
select a consultant to begin this work. Mr. Markus also reported OCWD
will host several workshop discussions with the groundwater producers
over the next twelve months to discuss their concerns regarding the
proposed annexations including impacts on the basin production
percentage and costs.
2.6. Future Agenda Items and Staff Tasks
The Committee will discuss the proposed expansion of the Groundwater
Replenishment System (GWR) at the next meeting.
3. ADJOURNMENT
3.1. The Committee adjourned at 5:00 p.m. after agreeing to schedule the next
meeting of the YLWD /MWDOC /OCWD Ad Hoc Committee on November
16, 2010 at 4:00 p.m.
2
ITEM NO. 11.7
AGENDA REPORT
Meeting Date: October 14, 2010
Subject: Citizens Advisory Committee
Minutes of meeting held September 27, 2010 at 8:30 a.m.
Meeting scheduled October 25, 2010 at 8:30 a.m.
ATTACHMENTS:
Name: Description: Type:
092710 - CAC Minutes.doc CAC Mtg Minutes 09/27/10 Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
CITIZENS ADVISORY COMMITTEE MEETING
September 27, 2010
1. CALL TO ORDER
A meeting of the Citizens Advisory Committee was called to order at 8:30 a.m. by
Committee Chair Carl Boznanski. The meeting was held at the District's
Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870.
2.
K�
COMMITTEE MEMBERS PRESENT
Bill Guse
Gene Scearce
Bob Kiley
Greg Meyers
Carl Boznanski
Lindon Baker
Cheryl Borden
Modesto Llanos
Gary Melton
Oscar Bugarini
STAFF PRESENT
Ken Vecchiarelli, General Mgr
Damon Micalizzi, PI Officer
PUBLIC COMMENTS
None.
DISCUSSION ITEMS
3.1. YLWD Water Rate Study and Pass - Through Rate Increase
Mr. Vecchiarelli presented to the Committee a report on various options
for water rate structures currently being studied for the District. He also
explained to the group how YLWD has already incorporated Metropolitans
two future known rate increases into our current rate that went into effect
on August 1St and the methodology behind implementing that one -time
consolidated Pass - Through increase.
3.2. YLWD Water Rate Reduction Petition
Mr. Vecchiarelli presented to the group information regarding a current
petition aimed at setting a lower YLWD rate, and the implications should
the petition garner enough support.
3.3. Status of Sewer System Transfer Agreement
Mr. Vecchiarelli updated the Committee on the latest dealings between the
City of Yorba Linda and the District in the drafting of a transfer agreement
for the City- operated Sewer System.
3.4. District Wide Water Usage and Conservation Update
Mr. Vecchiarelli updated the Committee on the most recent Conservation
and Water Usage statistics for the District.
3.5. Future Agenda Items
The Committee asked for an update on the Elk Mountain Practice Field
Project and for a Future Agenda Item outlining current rebates offered for
water saving devices.
4. ADJOURNMENT
4.1. The Committee adjourned at 10:13 a.m. The next regular meeting of the
Citizens Advisory Committee will be held October 25, 2010 at 8:30 a.m.
2
ITEM NO. 13.1
AGENDA REPORT
Meeting Date: October 14, 2010
Subject: Meetings from October 15, 2010 - November 30, 2010
ATTACHMENTS:
Name: Description: Type:
BOD - Activity Calendar.pdf BOD Activity Calendar Backup Material
Board of Directors Activity Calendar
Event Date Time Attendance by:
October 2010
Exec - Admin- Organizational Committee Meeting
Tue, Oct 19
4:00PM
Mills /Beverage
Yorba Linda City Council
Tue, Oct 19
6:30PM
Summerfield
MWDOC Board
Wed, Oct 20
8:30AM
Staff
Public Information - Technology Committee Meeting
Wed, Oct 20
4:00PM
Beverage /Hawkins
OCWD Board
Wed, Oct 20
5:30PM
Staff
Board of Directors Workshop Meeting
Thu, Oct 21
9:00AM
Hawkins
Citizens Advisory Committee Meeting
Mon, Oct 25
8:30AM
Summerfield /Collett
Yorba Linda Planning Commission
Wed, Oct 27
7:00PM
Hawkins
Board of Directors Regular Meeting
Thu, Oct 28
8:30AM
November 2010
Public Information - Technology Committee Meeting
Tue, Nov 2
4:00PM
Beverage /Hawkins
Yorba Linda City Council
Tue, Nov 2
6:30PM
Mills
MWDOC /MWD Workshop
Wed, Nov 3
8:30AM
Staff
OCWD Board
Wed, Nov 3
5:30PM
Staff
Planning- Engineering- Operations Committee Meeting
Thu, Nov 4
4:00PM
Mills /Summerfield
WACO
Fri, Nov 5
7:30AM
Hawkins
Finance - Accounting Committee Meeting
Mon, Nov 8
4:00PM
Summerfield /Collett
Personnel -Risk Management Committee Meeting
Tue, Nov 9
4:00PM
Collett /Hawkins
Board of Directors Regular Meeting
Wed, Nov 10
8:30AM
Yorba Linda Planning Commission
Wed, Nov 10
7:00PM
Collett
Holiday
Thu, Nov 11
7:30AM
District Offices Closed
MWDOC /OCWD Ad Hoc Committee Meeting
Tue, Nov 16
4:00PM
Mills /Beverage
Yorba Linda City Council
Tue, Nov 16
6:30PM
Summerfield
MWDOC Board
Wed, Nov 17
8:30AM
Staff
OCWD Board
Wed, Nov 17
5:30PM
Staff
Exec - Admin- Organizational Committee Meeting
Thu, Nov 18
4:00PM
Mills /Beverage
Citizens Advisory Committee Meeting
Mon, Nov 22
8:30AM
Board of Directors Regular Meeting
Wed, Nov 24
8:30AM
Yorba Linda Planning Commission
Wed, Nov 24
7:00PM
Hawkins
Holiday
Thu, Nov 25
7:30AM
District Offices Closed
Holiday
Fri, Nov 26
7:30AM
District Offices Closed
10/11/2010 8:30:19 AM
AGENDA REPORT
Meeting Date: October 14, 2010
ITEM NO. 14.1
Subject: MWDOC Water Policy Forum & Dinner - November 4, 2010
MWDOC 20 x 2020 Summit - November 10, 2010
STAFF RECOMMENDATION:
Authorize Directors and such staff members of the District as approved by the General Manager to
attend the above listed conferences.
ATTACHMENTS:
MWDOC Water Policy Forum.pdf
MWDOC_20by2020.pdf
Approved by the Board of Directors of the
Yorba Linda Water District
10/14/2010
PH /JS 5 -0
Description:
Type:
Event Flyer
Backup Material
Event Flyer
Backup Material
Online registration is now available by clicking the link
below. Register Now!
Please register by Friday. October 29. 2010 so that we
may provide the hotel with an accurate head count and
ensure that you receive your requested entree. Also, any
cancellations received after this date and event "no
shows" will be billed.
MUNICIPAL
WATER POLICY FORUM Ft DINNER
WATER r�
olsTrcT
FEATURING
OF
ORANGE
GREGORY K. WILKINSON
COLJN TY
BEST BEST Ft KRIEGER, LLP
NOVEMBER 4, 2010
EVENT DATE
The Municipal Water District of Orange County
November 4, 2010
(MWDOC) invites you and your colleagues to its
Water Policy Forum & Dinner on Thursday, November
6:00 p.m. - 8:30 p.m.
4, 2010, from 6:00 - 8:30 p.m. The event will be
held at the Westin South Coast Plaza, located at 686
EVENT LocATiON
Anton Blvd., in Costa Mesa.
Westin South Coast Plaza
We are pleased to welcome as our guest speaker
686 Anton Blvd.
Gregory K. Wilkinson with the law firm of Best Best &
Krieger, LLP. Mr. Wilkinson is one of the lead
Costa Mesa, CA 92626
attorneys in the legal challenge to the U.S. District
Court rulings that have imposed water pumping
restrictions in the Delta to protect the endangered
Delta Smelt and several species of salmon.
-
This is an outstanding opportunity for policy makers,
community and business leaders, water industry
professionals, and others to learn about the current
status of this litigation and its significance as it
relates to future application of the Endangered
Species Act and the management of our water
b
supply.
-r;- -.
You are also invited to attend a special reception
honoring Linda Ackerman, a recent appointee of
Governor Schwarzenegger to the Santa Ana Regional
Water Quality Control Board, and one of MWDOC's
Driving, Directions
representatives to the Metropolitan Water District of
Southern California's Board of Directors. The
MWDOC CALENDAR OF
reception begins at 6:00 p.m. with dinner following at
March 23 -24, 2011:
7 :00 p.m.
Registration for this event is $65 per person, which
Children's Water Education
includes the reception (with cash bar), three - course
Festival
dinner, and self - parking.
For additional event information, contact Tiffany Baca
May 20, 2011:
at (714) 593 -5013 or tbaca @mwdoc.com.
O.C. Water Summit
Sincerely,
For more information about
Joan C. Finnegan
MWDOC events and activities,
Board President
please visit www.mwdoc.com.
Municipal Water District of Orange County
Online registration is now available by clicking the link
below. Register Now!
Please register by Friday. October 29. 2010 so that we
may provide the hotel with an accurate head count and
ensure that you receive your requested entree. Also, any
cancellations received after this date and event "no
shows" will be billed.
20X2020
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Page 1 of 1
{ Save the Date
Wednesday, , No ember 1 O, 20. 0
20 X 2020* on-0
Building the
Momentum
*New statewide la w that requires urban
water suppliers Eo reduce per pemon
crater consumption 20 pemrent by 2020.
Timodiy F. Brick
Chairman, Board of Directors
The Metropolitan Water District of Southern California
Invites you to attend
a one -day summit at Union Station
Dovvntovm Los Angeles from 9 a.m. to 3 p.m.
This summit will bring together a mix of federal and state
legislators and regulators, water industry experts,
municipal planners, environmentalists, climatologists and
other stakeholders who will discuss all aspects of the exteusive work
being carried out across the Mate of California. to
help ensure water supply reliability through the year 2-035.
The Metropolitan 'Water District of Southern California
700 North Alameda Street
Los Angeles, CA 90012
Summit Informadow (213) 1-17-6675 or
20 2O2O,W
mwdbzP.vt»ii
Register No
http : / /www.mwdh2o.com /docsvcspubs /20x2020 /Save The Date.html 9/30/2010
Public Comments by Mark Schock
October 14, 2010
YLWD Regular Board of Directors Meeting
Good Morning Members of the Board, Water District Staff, and Water District Counsel. On August 26,
2010, at the Regular Board of Directors Meeting, I was very heartened to hear the YLWD General
Counsel make several comments regarding the City of Bell situation. The purpose of his comments
under the General Counsel's Report appeared to be both cautionary and advisory in nature regarding
how the City of Bell situation might impact the Yorba Linda Water District. The Counsel's specific
comment that struck a resonant point, was that because of the City of Bell's controversy, it would "no
longer be business as usual for water districts ".
Although I did not attend the Regular Board Meeting on September 9, 2010, 1 read in the official minutes
of that meeting, that the General Counsel again addressed the Board and "briefly commented on the
current legislative activity related to the City of Bell controversy". Unfortunately, because of my non-
attendance at that meeting, I do not know what the General Counsel's specific comments were due to
the Yorba Linda Water Districts policy of not tape recording or videotaping Board Meetings.
Why might you ask am I bringing this up? In the last eleven months, I attended three different Yorba
Linda Water District Meetings that I personally found to be of concern in terms of the way that they
were conducted. All three of the meetings were of the Yorba Linda Water District Public Financing
Corporation. The meetings that I reference were conducted on November 25, 2009, March 11, 2010,
and June 10, 2010. 1 found these meetings to be curious in the way that they were conducted because
of the following reasons:
• All of the Public Financing Corporation Meetings were scheduled on the same days as Regular
Board of Directors Meetings for YLWD.
• All of the three meetings were conducted immediately after the Regular Board Meetings
• All three of these meetings lasted only 1 -2 minutes before being adiourned. Although the
minutes have not yet been prepared for the June 10, 2010 meeting, and they will apparently not
be prepared until the next scheduled Public Financing Corporation meeting on December 9,
2010, 1 was there and know how long the meeting lasted.
• Unapproved minutes of these meetings are not made available for public viewing for months
until the Public Financing Corporation Meeting is held. In the case of the June 10, 2010 meeting,
those meeting minutes will not be available for more than five months!
It is my understanding that YLWD Board Members get compensated for each meeting that they attend.
I do not know if YLWD members get specific compensation for the Public Finance Corporation Meetings
mentioned. According to a number of articles in the Los Angeles Times, the Los Angeles County District
Attorney is investigating a number of similarly structured meetings conducted by officials in the City
Bell. The Los Angeles District Attorney has called such meetings "Phantom Meetings ", being possibly
scheduled by Bell officials for the purpose of getting compensation. I certainly hope that this is not the
case in the Yorba Linda Water District.
In order to address public concern over the length, structure and scheduling of "phantom meetings ", the
interim government of the City of Bell took immediate steps to incorporate all of these short meetings
within the confines of their regular City Council Meetings. This removes the possibility of improper
compensation for short meeting attendance. Possibly the Yorba Linda Water District Board may wish to
take action at a future Board Meeting to take immediate steps to review, address and clarify its policy
on the conduct of short meetings, and related compensation for Board Members. Remember, public
perception is very important.
Please attach a copy of these comments to the official Board Minutes. Thank You.