Loading...
HomeMy WebLinkAbout2011-12-08 - Board of Directors Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, December 8, 2011, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Michael J. Beverage, President Phil Hawkins, Vice President Ric Collett Robert R. Kiley Gary T. Melton 4. ADDITIONS/DELETIONS TO THE AGENDA 5. SEATING OF DIRECTORS 5.1. Reorganization of the Board of Directors for Calendar Year 2012 Recommendation: That the Board of Directors nominate and elect a President and Vice President and appoint staff to serve as the Secretary, Assistant Secretary and Treasurer. 6. 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. 7. SPECIAL RECOGNITION 7.1. Introduce Cody Nottingham, Newly Promoted to Maintenance Worker II 7.2. Presentation of Proclamation to Chloe Frank For Winning the District's 2011-12 Bottled Water Label Contest 8. COMMITTEE REPORTS 8.1. Citizens Advisory Committee (Beverage) • Minutes of meeting held November 28, 2011 at 8:30 a.m. • Meeting scheduled January 23, 2012 at 8:30 a.m. 9. 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. 9.1. Minutes of the Board of Directors Regular Meeting Held November 23, 2011 Recommendation: That the Board of Directors approve the minutes as presented. 9.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $682,310.46. 9.3. Financial Statements for the Quarter Ending September 30, 2011 Recommendation: That the Board of Directors receive and file the Financial Statements for the Quarter Ending September 30, 2011. 10. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 10.1. Board of Directors Compensation Recommendation: That the Board of Directors consider the Directors' compensation for Calendar Year 2012. 10.2. Resolution Requesting a Seat on the Orange County Sanitation District Board Recommendation: That the Board of Directors adopt Resolution No. 11-19 Requesting a Seat on the Orange County Sanitation District Board of Directors. 10.3. Employee Agreements for the Period July 1, 2011 through June 30, 2012 Recommendation: That the Board of Directors adopt: 1. Resolution No. 11-20, the Memorandum of Understanding and Pay Plan with the Yorba Linda Water District Employees Association; 2. Resolution No. 11-21, the Employee Compensation and Terms of Employment for the Supervisory/Confidential Employees; 3. Resolution No. 11-22, the Employee Compensation and Terms of Employment for Management Employees. All agreements are for the period of July 1, 2011 through June 30, 2012. 10.4. Customer Refunds on Sewer Service Charges Recommendation: That the Board of Directors approve refunding up to four years of excess sewer service charges to 100 affected customers at a maximum expense of $17,353. 10.5. OPEB Liability Pay Down Recommendation: That the Board of Directors authorize staff to deposit $263,810 ($317,979 less actual retiree costs through November 2011) to the California Employees' Retirement Benefit Trust (CERBT) for Fiscal Year 2011112. 11. REPORTS, INFORMATION ITEMS, AND COMMENTS 11.1. President's Report 11.2. Directors' Reports ACWA/JPIA Conference - November 28-29, 2011 (Kiley/Melton) A131 234 Training - November 30, 2011 (Melton) ACWA Conference - November 30 - December 2, 2011 (Hawkins/Kiley/Melton) A131 825 Training - December 6, 2011 (Beverage) 11.3. General Manager's Report Tour of Administration Building ACWA/JPIA Low Loss Ratio Award 11.4. General Counsel's Report 11.5. Future Agenda Items and Staff Tasks 12. COMMITTEE REPORTS CONTINUED 12.1. Executive-Administrative-Organizational Committee (Beverage/Hawkins) Minutes of meeting held November 30, 2011 at 4:30 p.m. Meeting scheduled December 20, 2011 at 4:00 p.m. 12.2. Finance-Accounting Committee (Collett/Kiley) Minutes of meeting held November 28, 2011 at 4:00 p.m. Meeting scheduled December 27, 2011 at 4:00 p.m. 12.3. Personnel-Risk Management Committee (Kiley/Beverage) • Meeting scheduled December 13, 2011 at 4:00 p.m. 12.4. Planning-Engineering-Operations Committee (Melton/Collett) • Meeting scheduled December 13, 2011 at 11:00 a.m. 12.5. Public Affairs-Communications-Technology Committee (Hawkins/Melton) Minutes of meeting held November 18, 2011 at 10:00 a.m. Minutes of meeting held December 7, 2011 at 4:00 p.m. (To be provided at the next Board meeting.) • Meeting scheduled January 3, 2012 at 4:00 p.m. 12.6. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Hawkins) Minutes of meeting held November 22, 2011 at 4:00 p.m. Meeting scheduled January 24, 2012 at 4:00 p.m. 13. INTERGOVERNMENTAL MEETINGS 13.1. YL City Council - December 6, 2011 (Hawkins) 13.2. MWDOC/MWD Workshop -December 7, 2011 (Melton/Staff) 13.3. OCWD Board - December 7, 2011 (Kiley/Staff) 14. BOARD OF DIRECTORS ACTIVITY CALENDAR 14.1. Meetings from December 9, 2011 - January 31, 2012 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: 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) Name of Case: Interinsurance Exchange of the Automobile Club vs. YLWD (OC Superior Court - Case No. 00425404) Name of Case: ACWA/JPIA, et al vs. Insurance Company of the State of Pennsylvania, et al (OC Superior Court - Case No. 00486884) 16. ADJOURNMENT 16.1. The next regular meeting of the Board of Directors will be held December 22, 2011 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 5.1 AGENDA REPORT Meeting Date: December 8, 2011 Budgeted: N/A Total Budget: N/A To: Executive-Administrative- Cost Estimate: N/A Organizational Committee Funding Source: N/A From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Cindy Botts, Management CEQA Compliance: N/A Analyst Subject: Reorganization of the Board of Directors for Calendar Year 2012 SUMMARY: Pursuant to the Board of Directors' Rules for Organization and Procedure (Resolution No. 11-15), a President and Vice President of the Board shall be elected annually at the first regular meeting of the Board in December of every year. In addition to selection of the President and Vice President, the Board appoints the Municipal Corporation Officers of Secretary, Assistant Secretary and Treasurer. STAFF RECOMMENDATION: That the Board of Directors nominate and elect a President and Vice President and appoint staff to serve as the Secretary, Assistant Secretary and Treasurer. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee discussed this matter at its meeting held November 30, 2011 and supports staff's recommendation. DISCUSSION: The powers and duties of the President are described in Section 30578 of the California Water Code and the Board of Directors' Rules for Organization and Procedure. The President's duties prescribed by state law are: . Sign all contracts on behalf of the District. . Perform other duties imposed by the Board. The President's duties prescribed by the Rules for Organization and Procedure are: . Assume the chair of the Presiding Officer immediately after election. . Make Committee assignments, subject to consent of the Board, annually at the first Board of Directors meeting in January of the subsequent year. . Conduct the proceedings of the Board. . Sign all ordinances, resolutions and contract documents approved and adopted by the Board. The Vice President will serve as the Presiding Officer in the absence of the President. In addition to the selection of the President and Vice President, the Board is required to appoint the Municipal Corporation Officers of Secretary, Assistant Secretary and Treasurer. The duties of these Officers are prescribed by the Water Code and the Rules for Organization and Procedure. The Secretary, or Assistant Secretary in the absence of the Secretary, attests all ordinances and resolutions approved and adopted by the Board, countersigns all contract documents approved and adopted by the Board, prepares the minutes of each meeting held by the Board, and performs all duties prescribed by Section 30000 et seq. of the California Water Code, the Rules for Organization and Procedure, and as imposed by the Board. The Treasurer also performs all duties prescribed by Section 30000 et seq. of the California Water Code, the Rules for Organization and Procedure, and as imposed by the Board. A member of the Board can not serve as the General Manager, Secretary, Assistant Secretary or Treasurer. However, the same person can be appointed as General Manager and Secretary or Secretary and Treasurer. The General Manager can not serve as the Treasurer. There is no additional compensation for serving as Secretary, Assistant Secretary or Treasurer if the individual is an employee of the District. The Board is allowed to set compensation for appointed individuals who are not employees of the District. PRIOR RELEVANT BOARD ACTION(S): On December 9, 2010, the Board of Directors elected Michael J. Beverage as President and Phil Hawkins as Vice President of the Board of Directors. In addition, the Board appointed the following as Corporate Officers: Ken Vecchiarelli Secretary Pat Grady Assistant Secretary Stephen Parker Auditor Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 GM/RK 5-0 Electing PH as President. RK/PH 5-0 Electing GM as Vice President. MB/RK 5-0 Appointing KV as Secretary, AA as Assistant Secretary and SP as Treasurer. ITEM NO. 8.1 AGENDA REPORT Meeting Date: December 8, 2011 Subject: Citizens Advisory Committee (Beverage) Minutes of meeting held November 28, 2011 at 8:30 a.m. Meeting scheduled January 23, 2012 at 8:30 a.m. ATTACHMENTS: Name: Description: Type: 112811 - CAC Minutes.doc CAC Mtg Minutes 11/28/11 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT CITIZENS ADVISORY COMMITTEE MEETING November 28, 2011 1. CALL TO ORDER A meeting of the Citizens Advisory Committee was called to order at 8:30 a.m. by the Committee Chair, Carl Boznanski. The meeting was held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia CA 92870. COMMITTEE MEMBERS PRESENT Carl Boznanski, Chair Rick Buck Joe Holdren Oscar Bugarini Sr. Modesto Llanos Lindon Baker Bill Guse Daniel Mole Fred Hebein Cheryl Spencer-Borden Gus Bruner YLWD DIRECTORS PRESENT YLWD STAFF PRESENT Michael Beverage, Director Damon Micalizzi, Public Information Officer VISITORS PRESENT None 2. PUBLIC COMMENTS None. 3. PRESENTATIONS 3.1. Citizens Advisory Committee Questionnaire Results Mr. Micalizzi presented to the Committee all of the responses to the CAC Questionnaire, addressing some items and questions posed along the way. The Committee discussed some of the responses in greater detail including the District's labor negotiations, an overview of what can effect or raise the District's water rate and the nexus between conservation and water use efficiency. In addition, the Committee discussed the importance of public outreach and education. 4. ACTION CALENDAR 4.1. Citizen's Advisory Committee Structure and Re-Organization Daniel Mole, Bill Guse, Fred Hebein and Cheryl Spencer -Borden were all nominated to serve as Chair of the Committee for the Calendar Year 2012. Mr. Hebein and Mrs. Spencer-Borden declined their nomination citing professional and personal obligations. The Committee then voted 6- 5 to elect Mr. Mole as Chair and then voted unanimously to elect Mr. Guse as Vice-Chair for 2012. 1 5. DISCUSSION ITEMS 5.1. Ground Water Adventure Tour (Committee Verbal Report) Mr. Bugarini and Mr. Llanos shared with the Committee their experience and highlights of the Ground Water Adventure Tour they attended courtesy of Orange County Water District, earlier in the month. Mr. Llanos was particularly interested in the ground water replenishment system. Both strongly suggested the rest of the Committee take the tour in the future. 5.2. Public Affairs Workshop (Verbal Report) Mr. Llanos briefed the Committee on the November 14, 2011 Board of Directors Public Affairs Special Workshop Meeting that he attended. He suggested that the Committee be presented the material discussed at the workshop. 5.3. Future Agenda Items Several items brought up in the questionnaire will be added to upcoming agendas including: • Golden State Water District's area in Yorba Linda • Rate Structure and Planning • Emergency Preparedness • Public Affairs Efforts 6. ADJOURNMENT 6.1. The Committee adjourned at 10:03 a.m. The next meeting of the Citizens Advisory Committee will be held Monday, January 23, 2012 at 8:30 a.m. 2 ITEM NO. 9.1 AGENDA REPORT Meeting Date: December 8, 2011 Subject: Minutes of the Board of Directors Regular Meeting Held November 23, 2011 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Narne: Description: Type: 112311 BOD - Minutes.doc BOD Mtg Minutes 11/23/11 Minutes Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 RC/MB 5-0 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING November 23, 2011 1. CALL TO ORDER The November 23, 2011 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Beverage at 8:31 a.m. The meeting was held in the Board Room at the District's Administrative Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE Director Hawkins led the pledge. { 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Michael J. Beverage, President Steve Conklin, Engineering Manager Phil Hawkins, Vice President Gina Knight, Human Resources Manager Ric Collett Stephen Parker, Finance Manager Robert R. Kiley Damon Micalizzi, Public Information Officer Gary T. Melton Annie Alexander, Executive Secretary ALSO PRESENT Brett Barbre, Director, Municipal Water District of Orange County Art Kidman, General Counsel, Kidman Behrens & Tague LLP Richard Kreisler, Labor Counsel, Liebert Cassidy Whitmore 4. ADDITIONS/DELETIONS TO THE AGENDA President Beverage requested to add the following item to the agenda as there was a need to take immediate action on this matter and the need for action came to staff's attention subsequent to the agenda being posted. 12.3. Conference with Labor Negotiators Pursuant to Section 54956.7 of the California Government Code Agency Designated Representatives: Gina Knight Richard Kreisler Employee Organization: Yorba Linda Water District Employees Association Director Hawkins made a motion, seconded by Director Collett, to add the above listed item to the agenda. Motion passed 5-0. Item No. 12.3. was taken following Item No. 5 to facilitate the attendance of Mr. Kreisler. 1 5. PUBLIC COMMENTS None. CLOSED SESSION The meeting was adjourned to Closed Session at 8:33 a.m. All Directors were present. Also present were Mrs. Knight and Mr. Kreisler. 12.3. Conference with Labor Negotiators Pursuant to Section 54956.7 of the California Government Code Agency Designated Representatives: Gina Knight ` Richard Kreisler The Board reconvened in Open Session at 8:45 a.m. President Beverage announced that no action was taken during Closed Session that was required to be reported under the Brown Act. Mr. Kreisler left the meeting at this time.° President Beverage asked if there was anyone wishing to provide Public Comments at this time. None were provided. 6. CONSENT CALENDAR Director Collett made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 5-0. Director Collett abstained from voting on Check No. 57815 on Item No. 6.3. as he has a financial interest with the vendor. 6.1. Minutes of the Board of Directors Regular Meeting Held November 10, 2011 Recommendation. That the Board of Directors approve the minutes as presented. 6.2. Minutes of the Board of Directors Workshop Meeting Held November 14, 2011 Recommendation. That the Board of Directors approve the minutes as presented. 6.3. Payments of Bills, Refunds and Wire Transfers Recommendation. That the Board of Directors ratify and authorize disbursements in the amount of $1,915,924.75. 6.4. Progress Payment No. 4 for Construction of the Ohio St. and Oriente Dr. Pipeline Replacement Recommendation. That the Board of Directors approve Progress Payment No. 4 in the net amount of $43,235. 10 to Mamco Construction for the Ohio Street and Oriente Drive Pipeline Project, Job No. 201006. 2 6.5. Progress Payment No. 10 for Construction of the Highland Booster Pump Station Project Recommendation. That the Board of Directors approve Progress Payment No. 10 in the net amount of $270,211.22 to Pacific Hydrotech Corporation for construction of the Highland Booster Pump Station Project, Job No. 200814. 6.6. Final Report Regarding Recycled Water Facilities Planning Study Recommendation. That the Board of Directors authorize staff to file the report and revisit its findings and recommendations in the future when the cost to implement the program is more economically feasible. 6.7. Placement of NEOGOV Logo on District's Employment and Job Description Web Pages Recommendation. That the Board of Directors approve the placement of NEOGOV's logo exclusively and limited to the District's employment and job description web pages. 7. ACTION CALENDAR 7.1. Mitigated Negative Declaration for Yorba Linda Blvd Pump Station and Pipeline Projects President Beverage announced that this item would be continued to the next Board meeting to allow Legal Counsel some time to review the matter. 8. REPORTS, INFORMATION ITEMS, AND COMMENTS 8.1. President's Report None. 8.2. Directors' Reports None. 8.3. General Manager's Report None. 8.4. General Counsel's Report Mr. Kidman reported that there was no need for a Closed Session regarding pending litigation (Item No. 12.1.) 8.5. Future Agenda Items and Staff Tasks None. 3 9. COMMITTEE REPORTS 9.1. Executive-Administrative-Organizational Committee (Beverage/Hawkins) Minutes of the meeting held November 16, 2011 at 4:00 p.m. were provided in the agenda packet. Directors Beverage and Hawkins attended. Matters discussed during the meeting included: Legislative Affairs Update; Final Report on 2011 Legislative Bills; General Counsel's Monthly Summary Report; Quarterly Director and General Manager Fees and Expenses (Jul - Sep 2011); and Status of Strategic Plan Initiatives. Meeting scheduled November 30, 2011 at 4:30 p.m. 9.2. Finance-Accounting Committee (Collett/Kiley) Meeting scheduled November 28, 2011 at 4:00 p.m. 9.3. Personnel-Risk Management Committee (Kiley/Beverage) Minutes of the meeting held November 8, 2011 at 4:00 p.m. were provided in the agenda packet. Directors Kiley and Beverage attended. Matters discussed during the meeting included: Safety Consultants Professional Services Agreement with the Aspen Group; Placement of NEOGOV Logo on District's Employment and Job Description Web Pages; Development and Implementation of an Internship Program; Status of Recruitments and Budgeted Positions; Status of Human Resources and Risk Management Activities; and Status of Strategic Plan Initiatives. Meeting scheduled December 13, 2011 at 4:00 p.m. 9.4. Planning-Engineering-Operations Committee (Melton/Collett) Minutes of the meeting held November 8, 2011 at 1:00 p.m. were provided in the agenda packet. Directors Beverage and Collett attended. Matters discussed during the meeting included: Mitigated Negative Declaration for Yorba Linda Blvd Pump Station and Pipeline Projects; Final Reporting Regarding Water Recycling Facilities Planning Study; Monthly Preventative Maintenance Program Report; Monthly Groundwater Production and Purchased Import Water Report; Status Report on Capital Projects in Progress; and Status of Strategic Plan Initiatives. Meeting scheduled December 13, 2011 at 11:00 a.m. 4 9.5. Public Affairs-Communications-Technology Committee (Hawkins/Melton) Minutes of the meeting held November 18, 2011 at 12:00 p.m. will be provided at the next Board meeting. Meeting scheduled December 5, 2011 at 4:00 p.m. was rescheduled to December 7, 2011 at 4:00 p.m. 9.6. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Hawkins) Minutes of the meeting held November 22, 2011 at 4:00 p.m. will be provided at the next Board meeting. Meeting scheduled November January 24, 2012 at 4:00 p.m. 9.7. Citizens Advisory Committee (Beverage) Meeting scheduled November 28, 2011 at 8:30 a.m. 10. INTERGOVERNMENTAL MEETINGS 10.1. YL City Council - November 15, 2011 (Melton) Director Melton attended and commented on the contract with the Brea Police Department which was discussed during the meeting. 10.2. MWDOC Board - November 16, 2011 (Melton/Staff) Director Melton was unable to attend this meeting. 10.3. OCWD Board -November 16, 2011 (Kiley/Staff) Director Kiley attended but did not have any District related business to report. 11. BOARD OF DIRECTORS ACTIVITY CALENDAR 11.1. Meetings from November 24, 2011 -December 31, 2011 The Board reviewed the listed meetings and made no additional changes. 12. CLOSED SESSION No Closed Session was held for Item No. 12.1. 12.1. 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) 5 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: 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) Name of Case: Interinsurance Exchange of the Automobile Club vs. YLWD (OC Superior Court - Case No. 00425404) Name of Case: ACWA/JPIA, et al vs. Insurance Company of the State of Pennsylvania, et al (OC Superior Court - Case No. 00486884) The meeting was adjourned to Closed Session at 8:56 a.m. All Directors were present. 12.2. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 9:54 a.m. President Beverage announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 13. ADJOURNMENT 13.1. The meeting was adjourned at 9:55 a.m. The next regular meeting of the Board of Directors will be held December 8, 2011 at 8:30 a.m. Annie Alexander Executive Secretary 6 ITEM NO. 9.2 AGENDA REPORT Meeting Date: December 8, 2011 Budgeted: Yes Total Budget: N/A To: Board of Directors Cost Estimate: $682,310.46 Funding Source: All Funds From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Stephen Parker, Finance Dept: Finance Manager Reviewed by Legal: N/A Prepared By: Maria Trujillo, Accounting CEQA Compliance: N/A Assistant I Subject: Payments of Bills, Refunds, and Wire Transfers SUMMARY: Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors' approval. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $682,310.46. DISCUSSION: The major wires on this disbursement list are as follows: A wire of $93,692.14 to ACWA-HBA for December 2011 health premium; and, a wire of $167,480.00 to OCWD for September LTSS in-lieu program. The balance of $184,103.45 is routine invoices. The Accounts Payable check register total is $445,275.59; Payroll No. 24 total is $237,034.87; and, the disbursements of this agenda report are $682,310.46. 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: Narne Do scripticn Type. CkReg120811_BOD.pdf Check Register Backup Material 11-CS 1208.doc Cap Sheet Backup Material Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 RC/MB 5-0 Y®rba Linda Water District Check Register For Checks Dated: 11/24/2011 thru 12/08/2011 Check No. Date Vendor Name Amount Description ($10k or greater 57858 12/09/2011 A Plus Awards By Dewey 15-62 57866 12/08/2011 A.W. Associates 3,000.00 W112811 11/28/2011 ACWA-HBA 93,692.14 Health premium December 57854 12/08/2011 Alex Yen 1,000.0f) 57855 12/08/2011 Alternative Hose Inc. 470.20 57856 12/08/2011 Anaheim Wheel & Tire 750.00 57857 12/08/2011 Anixter Inc. 640.09 57845 11/29/2011 Anthem Blue Cross EAP 165.00 57859 12/08/2011 Aqua-Metric Sales Co. 3,640.43 57860 12/08/2011 Aramark 577.60 57851 12/08/2011 Armando Raya 120.00 57862 12/08/2011 Associated Laboratories 1,942.60 57854 12/08/2011 AT & T 45.26 57863 12/08/2011 AT & T - Calnet2 15.32 57865 12/08/2011 Automatiandirect.com, Inc. 218.74 57857 12/08/2011 AW Direct Inc- 174.79 57868 12/08/2011 Acteca Systems 2,400.00 57869 12/08/2011 Bank Of America 705.80 57870 12/08/2011 Battery Systems 75.81 578.71 12/08/'2011 Bee Busters, Inc 450.00 57872 12/08/2011 Bob Peters Fire Protection 450.00 57873 12/08/'2011 Cal Society-Municipal Finance Office 897.00 57874 12/08/2011 CDW Government, Inc 827.52 57875 12/08/2011 Chambers Group Inc. 327.00 57876 12/08/2011 Clinical Lab. Of San Bern. 2,025.00 57877 12/08/2011 CILIA Surety 350-00 57848 1210817011 COAST PNEUMATICS INC 759.76 57878 12/08/2011 Community Lock & Safe Service, Inc. 10,75 57879 12/08/2011 Dapper Tire Co. Inc. 1,014.58 57880 12/08/2011 Dasco 9,284.00 57881 17/08/2011 DLTSolutions, Inc. 1,080.60 57882 12/08/2011 E. H. Wachs Company 569.82 57883 12/08/2011 Eisel Enterprises, Inc. 1,241.45 57884 12/08/2011 Embassy Suites Monterey Bay - Seas 503.86 57885 12/08/2011 Energy Environmental Soln, Inc 2,200.00 57894 12/08/2011 Environmental Equipment Supply 3039 57886 12/08/21011 Federal Express 71.90 57887 12/08/2011 Friendship Baptist Church 1.800.00 57888 12/08/2011 Fry°s Electronics 128.18 57846 12/08/2011 Fullmer Construction 2,800.00 57889 12/08/2011 Girt Scout Council of Orange County 1,500.00 57890 12/08/2011 Glenn Coates/PM Team 1,640-00 57891 12/08/20111 Haaker Equipment Co. 1,129.56 57892 12/08/2011 Habitat for Humanity of O.C. 1,889.00 56527 11/30/2011 HECTOR LOPEZ (36.10) 57847 12/08/2011 HECTOR LOPEZ 3610 57893 12/08/2011 Home Despot Credit Services 167-05 57850 12/08/2011 HQT Homes 8,272-00 57895 12/08/2011 Infosend Inc. 2,780.99 57896 12/08/2011 Integrity Backflow 131.34 57897 12/08,/2011 Jackson's Auto Supply - Napa 628.010 57898 12/08/2011 Jimmy De Anda 43.09 57899 12/48/2011 John Bogosian 400.77 57900 12/08/2011 John Decriscio 237-49 57901 12/08,/2011 Kaiser Permanente 1.500.00 57902 12/08/2011 Kimball Midwest 217.02 57903 12/08,/2011 Konica Minolta Business 117.89 57904 12/08/2011 Konica Minolta Business 849.25 57905 12/08/2011 Lakeview Associates, LLC 2,935-00 57906 12/08,/2011 Leighton Consulting, Inc. 987-00 57907 12/08/2011 Liebert Cassidy Whitmore 1,809.00 57908 12/08/2011 Light Bulbs Etc 933-15 57852 12/08,/2011 Long Swimming Pool Steel 1,380-00 57909 1210812011 Mc Fadden-Dale Hardware 69-02 57910 1210812011 Messiah Lutheran Church 1,484-50 57849 12/08/2011 MISSION PAVING & SEALING INC 542-46 57911 12/08/2011 Muzak LLC 70-88 57851 12/08/2011 New Castle Development 4,500.00 57912 12/08112011 Nickey Petroleum Co 6,130.26 57913 12/081"2011 Minya & Moore 561.00 57914 12/081/2011 North County Chabad Center 250.00 57915 12,108,12011 Office Solutions 630-33 W112911 11/29,•12011 Orange County Water District 167,480.00 LTSS in-lieu prop September 57916 12/'081•12011 Orvac Electronics 92.22 57917 12/09;12011 PARMA 100.00 57918 12/08/2011 Parts Source Anaheim 24.22 57919 12108/2011 Patrick Buckner 73.71 57920 1210812011 Powerstride Battery 9062 57921 12/08112011 Quinn Power Systems Associates 52-52 57922 12/08/2011 Ralph 5olesbee 1,000-00 57973 12/08/2011 RBF Consulting 13,174.15 Pipeline Replacement Oct Svcs 57924 12/08/2011 Regal CineMedia 383.010 57925 12108/2011 Robyn Shaw 871.06 57926 12/08/2011 Roman Catholic Diocese of Orange 1,000.00 57927 12/08Y'2011 Ronnie Tipton 800.00 57928 1210812011 Sanders Paving, Inc- 22,151.00 Paving work/various sites 57929 12/08/2011 Shred-It USA Inc 81.52 57930 1210812011 Southern Calif Edison Co- 488.59 W112511 11/25/12011 Southern Calif Edison Co. 2,804.12 W112511A 11/25/2011 Southern Calif Edison Co. 148.00 57931 12/018/2011 Southern Calif Gas Co. 5,616-98 57932 12/08/2011 Staples Business Advantage 486.08 57933 12/08/2011 Stater Bros. Markets 58.72 57934 1210812011 Stephen Parker/ Petty Cash 164.26 57935 12/08/2011 SWRCB 3,464-00 57936 12/08/2011 Tetra Tech, Inc. 527.010 57937 1210812011 Toil Brothers 1,000.00 57938 12/08/2011 United Industries 564-74 57853 12/08/2011 Upper K Shapel! 5010.00 57939 12/08/2011 Urethane Solutions, Inc_ 6,930-00 57940 12/08/2011 Valley View Enterprises 800.00 57941 12/08/2011 Village Nurseries 67.45 57942 12/08/2011 Wafters Wholesale Electric Co. 146.50 57943 12/08/2911 Wells Supply Co 14,328.87 Warehouse stock 57944 12/08/2011 Yorba Linda Family Partners, LP 7,320-00 57945 12/08/2011 Yorba Linda Friends Church 12,250,00 Cash Bond release Total $445,275.59 December 8, 2011 CHECK NUMBERS: Void Check 56527 $ (36.10) Manual Check 57845 $ 165.00 Computer Checks 57846-57945 $ 181,022.43 $ 181,151.33 WIRES: W-112511 So. California Edison $ 2,804.12 W-112511A So. California Edison $ 148.00 W-112811 ACWA-HBA $ 93,692.14 W-112911 OCWD $ 167,480.00 $ 264,124.26 TOTAL OF CHECKS AND WIRES $ 445,275.59 PAYROLL NO. 24: Computer Checks 5115- 5117 Manual Checks 5118- 5128 $ 237,034.87 DISBURSEMENT TOTAL: $ 682,310.46 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF DECEMBER 8, 2011 ITEM NO. 9.3 AGENDA REPORT Meeting Date: December 8, 2011 To: Board of Directors From: Ken Vecchiarelli, General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Reviewed by Legal: N/A Prepared By: Stephen Parker, Finance CEQA Compliance: N/A Manager Subject: Financial Statements for the Quarter Ending September 30, 2011 SUMMARY: Presented are the Financial Statements for the Quarter Ending September 2011 for the District. STAFF RECOMMENDATION: That the Board of Directors receive and file the Financial Statements for the Quarter Ending September 30, 2011. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this matter at its meeting held November 28, 2011 and supports staff's recommendation with suggested revisions to the format and content on the new accrual-based report. The Committee's suggested format changes were incorporated and are included in the attached reports. DISCUSSION: For the quarter ending September 30, 2011, staff is presenting unaudited financial statements in the CAFR format. This is a new approach by presenting the quarterly statements on a full-accrual basis, and we believe that this is a more transparent presentation of the District's overall financial position for your review. In addition to the new format, we also have the traditional budget to actual statements for the District as a whole, as well as for the water and sewer funds individually. Water Operating Revenue as presented, is 30.6% of annual budget, which is less than 3% behind pace of making our current year's budget. Other Operating Revenue is 45% of annual budget. This is primarily due to receiving un-budgeted revenue relating to the Vista Del Verde development. Sewer Other Operating Revenue is well over budget due to the un-budgeted Vista Del Verde development hitting revenue in the first quarter of the fiscal year. Sewer Other Non-Operating revenue is also well over budget, primarily because of receiving $264,000 from the City of Yorba Linda for the Sewer Transfer. These funds are paying for improvements at the Greencrest Sewer Lift Station and will help finance GIS improvements to incorporate the infrastructure from the dedicated City sewer system into the District's GIS database. The one major reporting item to note this first quarter, is that the District recorded the fair market value of the sewers that came from the City of Yorba Linda. The value, calculated by staff and reviewed by the District's auditors, is recorded at more than $17 million and is recorded on the income statement as contributed capital. PRIOR RELEVANT BOARD ACTION(S): On November 10, 2011, the Board received and filed the FY 2010/11 Comprehensive Annual Financial Report. ATTACHMENTS: Name: Description: Type: FY 2012 1st Qtr Unaudited Financial Statements.xlsx FY 2012 1 st Qtr Financial Statements Backup Material FY 2012 1st Qtr Combined Stmt.xls FY 2012 1 st Qtr Combined Statement Backup Material FY 2012 1st Qtr Water Statement.xls FY 2012 1 st Qtr Water Statement Backup Material FY 2012 1st Qtr Sewer Stmt.xls FY 2012 1 st Qtr Sewer Statement Backup Material Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 RC/MB 5-0 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS September 30, 2011 ASSETS Sept. 2011 June 2011 CURRENT ASSETS: Cash and cash equivalents $ 28,128,984 $ 29,985,508 Investment 2,158,358 2,143,130 Accounts receivable - water and sewer services 4,402,878 3,642,530 Accounts receivable - property taxes 102,192 114,949 Accrued interest receivable 21,983 22,049 Prepaid expenses & other deposits 387,806 246,919 Inventory 249,910 233,613 TOTAL CURRENT ASSETS 35,452,111 36,388,698 NONCURRENT ASSETS: Bond issuance costs 748,247 755,728 Capital assets: Non-depreciable 8,014,707 5,223,388 Depreciable, net of accumulated depreciation 191,923,569 176,410,400 TOTAL NONCURRENT ASSETS 200,686,523 182,389,516 TOTAL ASSETS 236,138,634 218,778,214 LIABILITIES CURRENT LIABILITIES: Accounts payable 4,408,047 4,506,830 Accrued expenses 110,462 130,306 Accrued interest payable 966,343 483,171 Certificates of Participation - current portion 890,000 890,000 Compensated absences 258,032 251,798 Customer and construction deposits 298,680 281,156 Deferred revenue 416,525 416,525 TOTAL CURRENT LIABILITIES 7,348,089 6,959,786 LONG-TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue 14,297,711 14,406,176 Compensated absences 774,109 755,395 Other post-employment benefit (OPEB) liability 119,858 122,065 Certificates of Participation 42,293,870 42,299,117 TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) 57,485,548 57,582,753 TOTAL LIABILITIES 64,833,637 64,542,539 NET ASSETS: $ 171,304,997 $ 154,235,675 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the quarter ended September 30, 2011 Sept. 2011 June 2011 OPERATING REVENUES: Water sales $ 8,109,156 $ 22,686,251 Sewer revenues 357,834 1,274,579 Other operating revenues 393,832 1,035,545 TOTAL OPERATING REVENUES 8,860,822 24,996,375 OPERATING EXPENSES Variable water costs 4,667,323 11,268,306 Personnel services 1,791,671 6,902,995 Supplies and services 798,604 3,686,333 Depreciation and amortization 1,608,276 5,279,860 TOTAL OPERATING EXPENSES 8,865,874 27,137,494 OPERATING INCOME/(LOSS) (5,052) (2,141,119) NONOPERATING REVENUES (EXPENSES): Property taxes 45,107 1,258,769 Investment income 70,348 274,152 Interest expense (476,565) (1,172,503) Other nonoperating revenues 383,524 739,062 Other nonoperating expenses (9,466) (406,575) TOTAL NONOPERATING REVENUES/EXPENSES 12,948 692,905 NET INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS 7,896 (1,448,214) CAPITAL CONTRIBUTIONS 17,061,426 706,319 CHANGES IN NET ASSETS 17,069,322 (741,895) NET ASSETS - BEGINNING OF YEAR 154,235,675 154,977,570 NET ASSETS - FOR PERIOD END SEPTEMBER 30, 2011 $ 171,304,997 $ 154,235,675 Yorba Linda Water District Water & Sewer Funds For The Quarter Ending September 30, 2011 Original YTD YTD YTD Budget Actual Under(Over) % of FY 2012 FY 2012 Budget Budget Revenue (Operating): Water Revenue (Residential) $17,904,893 $5,289,881 $12,615,012 29.54% Water Revenue (Commercial & Fire Det.) 1,726,651 556,408 1,170,243 32.22% Water Revenue (Landscape/Irrigation) 3,757,058 1,422,287 2,334,771 37.86% Water Revenue (Service Charge) 3,406,392 840,580 2,565,812 24.68% Sewer Charge Revenue 1,548,550 357,343 1,191,207 23.08% Locke Ranch Assessments 159,862 491 159,371 0.31% Other Operating Revenue 754,361 393,832 360,529 52.21% Total Operating Revenue: 29,257,767 8,860,822 20,396,945 30.29% Revenue (Non-Operating): Interest 190,000 70,348 119,652 37.03% Property Tax 1,232,000 45,107 1,186,893 3.66% Other Non-Operating Revenue 499,369 383,524 115,845 76.80% Total Non-Operating Revenue: 1,921,369 498,979 1,422,390 25.97% Total Revenue 31,179,136 9,359,801 21,819,335 30.02% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 13,671,538 4,667,323 9,004,215 34.14% Salary Related Expenses 7,941,306 1,791,671 6,149,635 22.56% Supplies & Services 4,020,833 798,604 3,388,537 19.86% Total Operating Expenses 25,633,677 7,257,598 18,542,387 28.31% Expenses (Non-Operating): Interest on Long Term Debt 1,906,426 476,565 1,429,861 25.00% Other Expense 123,193 9,466 113,727 7.68% Total Non-Operating Expenses: 2,029,619 486,031 1,543,588 23.95% Total Expenses 27,663,296 7,743,629 20,085,975 27.99% Net Income (Loss) Before Capital Contributions 3,515,840 1,616,172 1,733,360 45.97% Contributed Capital - 17,061,426 (17,061,426) 0.00% Net Income (Loss) Before Depreciation 3,515,840 18,677,598 (15,161,758) 531.24% Depreciation & Amortization 5,561,699 1,608,276 3,953,423 28.92% Total Net Income (Loss) ($2,045,859) $17,069,322 ($19,115,181) -834.34% Capital - Direct Labor - (95,912) 95,912 0.00% Yorba Linda Water District Water Fund For The Quarter Ending September 30, 2011 Original YTD YTD YTD Budget Actual Under(Over) % of FY 2012 FY 2012 Budget Budget Revenue (Operating): Water Revenue (Residential) $17,904,893 $5,289,881 $12,615,012 29.54% Water Revenue (Commercial & Fire Det.) 1,726,651 556,408 1,170,243 32.22% Water Revenue (Landscape/Irrigation) 3,757,058 1,422,287 2,334,771 37.86% Water Revenue (Service Charge) 3,406,392 840,580 2,565,812 24.68% Other Operating Revenue 697,360 310,446 386,914 44.52% Total Operating Revenue: 27,492,354 8,419,602 19,072,752 30.63% Revenue (Non-Operating): Interest 170,000 66,639 103,361 39.20% Property Tax 1,232,000 45,107 1,186,893 3.66% Other Non-Operating Revenue 495,394 124,081 371,313 25.05% Total Non-Operating Revenue: 1,897,394 235,827 1,661,567 12.43% Total Revenue 29,389,748 8,655,429 20,734,319 29.45% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 13,671,538 4,667,323 9,004,215 34.14% Salary Related Expenses 6,953,531 1,559,417 5,394,114 23.69% Supplies & Services: Communications 366,513 56,693 309,820 15.47% Contractual Services 527,485 77,708 449,777 14.73% Data Processing 119,645 29,383 90,262 24.56% Dues & Memberships 55,682 24,997 30,685 44.89% Fees & Permits 136,504 24,293 112,211 17.80% Insurance 221,526 38,999 182,527 17.60% Materials 352,642 90,186 262,456 25.57% District Activities, Emp Recognition 20,757 2,381 18,376 11.47% Maintenance 368,603 59,110 309,493 16.04% Non-Capital Equipment 79,221 12,808 66,413 16.17% Office Expense 45,714 9,887 35,827 21.63% Professional Services 771,431 170,752 600,679 22.13% Training 48,625 10,769 37,856 22.15% Travel & Conferences 49,649 3,262 46,387 6.57% Uncollectible Accounts 35,340 432 34,908 1.22% Utilities 113,925 22,846 91,079 20.05% Vehicle Equipment 278,209 60,559 217,650 21.77% Supplies & Services Sub-Total 3,591,471 695,065 2,896,406 19.35% Total Operating Expenses 24,216,540 6,921,805 17,294,735 28.58% Expenses (Non-Operating): Interest on Long Term Debt 1,906,426 476,565 1,429,861 25.00% Other Expense 117,193 9,466 107,727 8.08% Total Non-Operating Expenses: 2,023,619 486,031 1,537,588 24.02% Total Expenses 26,240,159 7,407,836 18,832,323 28.23% Net Income (Loss) Before Capital Contributions 3,149,589 1,247,593 1,901,996 39.61% Capital Contributions - 16,537 (16,537) 0.00% Net Income (Loss) Before Depreciation 3,149,589 1,264,130 1,885,459 40.14% Depreciation & Amortization 4,628,999 1,339,117 3,289,882 28.93% Total Net Income (Loss) ($1,479,410) ($74,987) ($1,404,423) 5.07% Capital - Direct Labor - (87,558) 87,558 - Yorba Linda Water District Sewer Fund For The Quarter Ending September 30, 2011 Original YTD YTD YTD Budget Actual Under(Over) % of FY 2012 FY 2012 Budget Budget Revenue (Operating): Sewer Charge Revenue $1,548,550 $357,343 $1,191,207 23.08% Locke Ranch Assessments 159,862 491 159,371 0.31% Other Operating Revenue 57,001 83,386 (26,385) 146.29% Total Operating Revenue: 1,765,413 441,220 1,324,193 24.99% Revenue (Non-Operating): Interest 20,000 3,709 16,291 18.55% Other Non-Operating Revenue 3,975 259,443 (255,468) 6526.87% Total Non-Operating Revenue: 23,975 263,152 (239,177) 1097.61% Total Revenue 1,789,388 704,372 1,085,016 39.36% Expenses (Operating): Salary Related Expenses 987,772 232,254 755,518 24.36% Supplies & Services: Communications 30,587 4,976 25,611 16.27% Contractual Services 40,135 7,026 33,109 17.51% Data Processing 9,005 999 8,006 11.09% Dues & Memberships 4,505 1,874 2,631 41.60% Fees & Permits 14,066 1,812 12,254 12.88% Insurance 16,674 13,533 3,141 81.16% Materials 35,703 6,118 29,585 17.14% District Activities, Emp Recognition 1,562 175 1,387 11.20% Maintenance 74,267 17,006 57,261 22.90% Non-Capital Equipment 18,799 5,750 13,049 30.59% Office Expense 3,415 744 2,671 21.79% Professional Services 80,769 28,838 51,931 35.70% Training 5,100 1,333 3,767 26.14% Travel & Conferences 4,202 331 3,871 7.88% Uncollectible Accounts 2,660 14 2,646 0.53% Utilities 9,575 1,841 7,734 19.23% Vehicle Equipment 78,341 11,169 67,172 14.26% Supplies & Services Sub-Total 429,365 103,539 325,826 24.11% Total Operating Expenses 1,417,137 335,793 1,081,344 23.70% Expenses (Non-Operating): Other Expense 6,000 - 6,000 0.00% Total Non-Operating Expenses: 6,000 - 6,000 0.00% Total Expenses 1,423,137 335,793 1,087,344 23.60% Net Income (Loss) Before Capital Contributions 366,251 368,579 (2,328) 100.64% Contributed Capital - 17,044,889 (17,044,889) 0.00% Net Income (Loss) Before Depreciation 366,251 17,413,468 (17,047,217) 4754.52% Depreciation & Amortization 932,700 269,159 663,541 28.86% Total Net Income (Loss) ($566,449) $17,144,309 ($17,710,758) -3026.63% Capital - Direct Labor (8,354) 8,354 ITEM NO. 10.1 AGENDA REPORT Meeting Date: December 8, 2011 Budgeted: Yes Total Budget: $90,000 To: Board of Directors Funding Source: Water Operating Fund From: Ken Vecchiarelli, General Manager Account No: 1-1010-0440-00 Presented By: Ken Vecchiarelli, General Manager Dept: Board of Directors Reviewed by Legal: N/A Prepared By: Cindy Botts, Management Analyst CEQA Compliance: N/A Subject: Board of Directors Compensation SUMMARY: The Water Code, Section 20202, permits water districts to increase the compensation amount for Board member meeting attendance each calendar year. STAFF RECOMMENDATION: That the Board of Directors consider the Directors' compensation for Calendar Year 2012. COMMITTEE RECOMMENDATION: The Executive-Administrative-Operational Committee reviewed this item on November 30, 2011 and did not recommend an increase in Directors' compensation at this time. DISCUSSION: The level of compensation for attendance at Board and Committee meetings is currently $150 per day, limited to 10 days per month, pursuant to Water Code Section 20202. Section 20202 allows for an increase in compensation of up to five percent for each year following the date of the last adjustment. As the last adjustment was made in 2001, the Board of Directors is eligible for an increase in compensation up to $256.55 per day, with a maximum of 10 days per month. The Board could choose a compensation rate at any level up to the maximum allowed. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors last increased their meeting compensation rate in 2001, and prior to that, in 1991. Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 MB/RC 5-0 NOT increasing the Directors' compensation rate for the upcoming calendar year. ITEM NO. 10.2 AGENDA REPORT Meeting Date: December 8, 2011 To: Board of Directors From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Manager Reviewed by Legal: Yes Prepared By: Damon Micalizzi, Public Information Officer Subject: Resolution Requesting a Seat on the Orange County Sanitation District Board SUMMARY: As the sole sewer service provider for the City of Yorba Linda, YLWD is requesting a seat on the Orange County Sanitation District Board of Directors in order to more directly represent its ratepayers in the collection, transmission and treatment of their sanitary sewer flows. STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 11-19 Requesting a Seat on the Orange County Sanitation District Board of Directors. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee discussed this matter at its meeting held November 30, 2011 and supports staff's recommendation. DISCUSSION: As a result of the Sewer Transfer Agreement with the City of Yorba Linda (reference copy attached), which went into effect on July 1, 2011, the Yorba Linda Water District is now solely responsible for the collection and transportation of sewage within city limits. This area represents approximately 20,000 of the 25,500 YLWD sewer accounts, including residential, commercial, and industrial customers. These customers submit payments for services directly to YLWD and the District is accountable for justifying its rates and services directly to these customers. Attached is a resolution prepared for the Board's consideration requesting YLWD's representation on the OCSD Board of Directors, along with a letter from the City of Yorba Linda supporting the concept of an additional seat for YLWD on the OCSD Board. ATTACHMENTS: Na; rye: Description: u ype: Yorba Linda, City of Agreement Backup Material Transfer of Public Sewer System.pdf City Position on OCSD Board.pdf Correspondence Backup Material Resolution No. 11-19.docx Resolution No. 11-19 Resolution Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 MB/RK 5-0 Roll Call Pt 1;LI C IS LW ft. F ~ ~-,TLM 1 RAC -,F ER r (,,ItFE IVN-1' "THIS PUBLIC; SEWER TRANSFER AGREEMENT ("Agreement") is trade and entered into on 7 , 2011, by and between the YORBA LINDA WATER DISTRICT, a loca public agency, created and operating under authority of Division 12 of the California Water Code ("District"), and the CITY OF YORBA LINDA, a municipal corporation organized and existing under `Title 4, Section 34000 et seq. of the California Goverttnient Code ("City") (collectively referred to herein as the "Parties,"). RECITALS WHEREAS, both the District and City have the legal power and authority to provide both water and sewer services to the lands and inhabitants within their respective boundaries. The purpose of this Agreement is to further strengthen a stable and compatible working relationship between the Parties with the goal of consolidating sewer service under one agency to maximize efficiencies for the overall benefit and enjoyment of the residents, businesses and other stakClio k1Grs ("Scrv ice lieneticiaries") ol, the Yorba Linda area: and WHEREAS, the District currently provides scv~er service to approximately ttivo thirds of' the residents and businesses connected to the public sewer system within the City limits. `The District provides water service to all areas within the City, with the exception of a small portion known as the Locke Ranch area, which is served by an investor-owned public utility. 'The District provides sewer service to the Locke Ranch area and water service to portions of the Cities of Anaheim, Brea, Placentia, and to a portion of an unincorporated County of Orange territory. Additionally, the District provides sewer service to the West End Yorba Linda Area (approximately 151000 services) along with a portion owned by the City (approximately 3,000 services) generally located easterly of I°airmont Blvd and westerly of San Antonio Road, with I-airtnotit to the north. and Lsperanr.a to the SOLIth: and NN 1-lERL/XS, pelrsuant to the "Agreement for the Provision of 1\ ater and der,ver ;SerxIces", dated October 3, 1977, the City currently provides sewer service to the East Yorba Linda Area (approximately +6,100 services).. which generally extends easterly of San Antonio Road ('East Yorba Linda Area"), and WHEREAS, the governing bodies of the District and the City have determined that it would be in the best interest of their Service Beneficiaries for District to acquire the sewer collection system currently owned by the City and generally described in the preceding recitals: and WHEREAS, the City desires to transfer and assign to the District, at no cost to District, such sewer collection facilities, and the associated parcels of real property, easement rights and other associated assets on the terms and conditions herein set forth, free and clear of all liens, and 1'I lit 1( wl l R I k,\ti ;l LP 1t i1Z1. 1%11 % I Cit-v (4 Y0171M I 11ILLI - Yorba Linda Water District P,o..c I District desires to acquire such sewer collection facilities and the responsibility to provide continuing sewer service to the residents of the City of Yorba Linda; and WHEREAS, it is the objective of the Parties that the transfer of such sewer collection facilities be accomplished in a manner that will maintain equity to the ratepayers and property owners in the City of Yorba Linda and in the District's service area. NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties agree as follows: i AGREEMENT 1.0. EFFECTIVE DATE. This Agreement shall be effective upon execution by all Parties. All assets, liabilities, contractual rights and obligations, and any other real or personal property or other interest whatsoever of the City, related to the Sewer Collection Facilities, as defined in Section 3.1, shall be transferred to the District in accordance with this Agreement, and all approvals and permits required from regulatory or jurisdictional agencies (e.g. Regional Water Quality Control Board or Local Agency Formation Commission) for the transfer of the Sewer Collection Facilities by July 1, 2011 ("Transfer Date"). 2.0. MUTUAL CONSIDERATION. In reliance on the City's disclosures and representations, and in exchange for mutual consideration provided by the terms, conditions, covenants, and promises of this Agreement and the transfer of the Sewer Collection Facilities, the District agrees to assume the obligation and responsibility to provide sewer service and maintenance to the East Yorba Linda Area. In consideration for the District assuming the obligation and responsibility to provide sewer service and maintenance to the East Yorba Linda Area, the City agrees to transfer the Sewer Collection Facilities to the District. 3.0. TRANSFER OF ASSETS. Subject to the terms and conditions of this Agreement, on the Transfer Date, the City transfers and assigns to the District, and District accepts, all of the City's right, title and interest in and to the following assets, rights, claims, properties and interests that the City owns, (collectively, the "Transferred Assets"): M. Sewer Collection Facilities. All of the City's right, title and interest in and to the Sewer Collection Facilities owned, leased or otherwise possessed by the City.") 3.2. Easement Deeds and Real Property. All of the City's rights to access or use any real property or rights, title and interest to real property (including by lease, license, permit or easement) directly or indirectly used in the operation of the Sewer Collection Facilities, including, without limitation, any leases, easements, and real properties. PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 2 3.3. Permits. All approvals, consents, licenses, permits, waivers or other authorizations issued, granted, given, applied for at the time of the Transfer Date or otherwise made available by or under the authority of any governmental authority (other than the City) for the ownership or operation of any Sewer Collection Facility, including, without limitation, any Permits to the extent such Permits are assignable. 3.4. Sewer Related Inventory Items. Any and all inventory items utilized for the maintenance, repair, replacement, or rehabilitation of the Sewer Collection Facilities. 4.0. DISTRICT'S SERVICE OBLIGATIONS. Commencing on the Transfer Date, the District will provide continuing sewer service to all residents in the City. The District shall be responsible for the Fats, Oils and Grease (FOG) program for the sewer service area transferred pursuant to this Agreement in addition to and to the same standards as the areas already covered by the District per the Waste Discharge Requirements (WDR's) regulated by the State of California Water Resources Control Board. 5.0. MODIFICATION OF PRIOR AGREEMENT. The Parties hereby modify the "Agreement for the Provision of Water and Sewer Services" between the City of Yorba Linda and the Yorba Linda Water District, dated October 3, 1977 (the "1977 Agreement") as specified below. Except as expressly modified herein, the 1977 Agreement shall remain in full force and effect. To the extent that there is inconsistency between this Agreement and the 1977 Agreement, the terms of this Agreement shall govern. 5.1. Paragraph 10 of the 1977 Agreement is deleted in its entirety and the following paragraph is substituted in its place: "10. Water and Sewer Services. Water and sewer services to all areas within the City, including future territory annexed thereto, shall be provided by the District. The City agrees not to provide such services. The terms of this paragraph shall not limit the ability of the District to supply water and sewer services outside the boundaries of the City. The District shall be responsible for the design, construction, operation, maintenance, repair and replacement of all facilities, including in-tract subdivision systems, necessary to provide such water and sewer services. Developers applying to the District for water and sewer services shall comply with all of its rules and regulations, provided that such water and sewer services and conditions imposed by the District shall be in accord with generally accepted standards for public water and PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 3 sewer supply systems. Nothing contained in this Agreement shall in any way limit the authority of the District in connection with its legal powers to supply water and sewer services." 5.2. Paragraph 12 of the 1977 Agreement , formerly entitled "City Sewer Service Area," is deleted in its entirety and the following paragraph is substituted in its place: "12. District Sewer Service Area. The District shall provide sewer service to all of those areas within the City, including future territory annexed thereto, as shown on Exhibit `A' as the `City Sewer Service Area."' 5.3 Paragraphs 13, 14, 15, 16, and 17 remain in full force and effect except where the context requires that the word "City" be substituted by the word "District" in order to be consistent with Paragraph 10, as amended by this Agreement, and the District's assumption of obligations and responsibilities under this Agreement. 6.0. DISCLOSURES and REPRESENTATIONS. The City has made the following disclosures and representations to the District in connection with this Agreement. The City represents that the information and documents provided to the District as described below are complete and that the City has no knowledge of additional information or documents that have not been provided to the District and that would be material to these disclosures and representations. The District enters into this Agreement in reliance on the following disclosures and representations. 6.1. The City hereby represents that it will provide copies to the District with a full accounting of monies and funds collected and expended to operate the Sewer Collection Facilities, including but not limited to Income and Expense reports, Balance Sheets, a listing of bad debts/delinquencies and audit reports for FY 200$109, FY 2009/10 and when available, for FY 2010111. 6.2. The City hereby represents that it has provided prior access to existing records and will provide permanent copies of any such records within thirty days of the Transfer Date, to the District any and all maintenance records, repair records, construction documents, purchase documents (including receipts and written warranties), and/or logs that relate to the Sewer Collection Facilities for the period January 2005,[A11 to the present. 6.3. The City hereby represents that it has provided the District with access to any and will provide permanent copies to the District within thirty days of the Transfer Date of all as-built maps, specifications, and/or mapping documents that relate to the Sewer Collection Facilities. PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 4 6.4. The City hereby represents that it has provided the District with access to any and will provide permanent copies to the District within thirty days of the Transfer Date of any and all information and documentation related to the Fats, Oil and Grease (FOG) Program currently mandated in the Waste Discharge Requirements (WDR). This provision of information, however, shall not relieve the City of compliance obligations under this Agreement, as discussed below. 6.5. The City hereby represents that it has provided the District with access to any and will provide permanent copies within thirty days of the Transfer Date any and all information, correspondence, permits and/or orders related to industrial waste discharge for the period 005?1A21 to the present. 6.6. The City hereby represents that this Agreement pertains to the Sewer Collection Facilities only, which is a portion of the sanitary sewer system that serves the City of Yorba Linda, and that the Agreement does not pertain to storm drains. 6.7. The City hereby represents that it holds in good standing and is currently in compliance with all permits and licenses necessary to operate the Sewer Collection Facilities and has not violated any applicable laws, rules or regulations in connection with its operation of the Sewer Collection Facilities. 6.8. The City hereby represents that it is currently aware of no claim or threat of litigation against the City or its assets in connection with the construction, operation or maintenance of the Sewer Collection Facilities, nor has the City been notified of any investigation or inquiry by any governmental agency or authority into the operation of the Sewer Collection Facilities. 6.9. The City hereby represents that no third party holds a security interest or encumbrance in the Sewer Collection Facilities, the Easements, or any funds that will be provided to the District pursuant to this Agreement. 6.10. The City hereby represents that it holds clear title to all real property interests identified in paragraph 3.2. 6.11. The City hereby represents that all approvals, consents, licenses, permits, waivers or other authorizations issued, granted, given, applied for at the time of the Transfer Date or otherwise made available by or under the authority of any Governmental Authority (other than the City) for the ownership or operation of the Sewer Collection Facility identified in paragraph 3.3. 6.12. The City hereby represents that all inventory items it currently utilizes for the maintenance, repair, replacement and/or rehabilitation of the Sewer Collection Facilities are accounted for and will be transferred to the District within thirty days of the Transfer Date. PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 5 i 7.0. SEWER FUND AND INCOME. The City agrees to remit to the District any and all unexpended sewer related funds paid directly by the residents or collected from the property tax billings for sewer maintenance charges through to the Transfer Date. Effective as of the Transfer Date, if the City continues to derive income from the property tax billings for the sewer maintenance charge placed on the County of Orange tax roll for the sewer customers served by the City for FY 2010/11, the City agrees to remit to the District, any and all subject sewer related income previously described within 45 days of receipt of the funds from the County. 8.0. GREENCREST LIFT STATION REPLACEMENT. Notwithstanding any other provision in this Agreement, the Parties mutually agree that the sewer lift station located on Greencrest Drive, which provides service to seven residential homes, requires replacement at this time. The City agrees to provide the funding for the replacement of the lift station. Said funding may be included in and provided by the remittance identified in Section 7.0, providing said remittance is sufficient to fund the project, which is currently estimated at $175,000. The District agrees to coordinate the replacement effort, including soliciting engineering estimates, preparing bid documents, soliciting bids, and awarding a contract for replacement, commencing in the first fiscal year following the Sewer Facilities Tranfer. 9.0. WASTEWATER RATE STUDY. The City agrees to authorize the consulting firm of PBSJ to provide District with any and all information, including working documents, calculations and analysis, the District may deem necessary to assess and evaluate the City of Yorba Linda Wastewater Rate Study prepared by PBSJ, dated April, 2010 and adopted by the City on July 20, 2010. 10.0. ORANGE COUNTY SANITATION DISTRICT REPRESENTATION. The City agrees to support District membership representation on the Orange County Sanitation District Board and support the appointment of a representative from the District. The District representative shall be selected by the District's Board of Directors. 11.0. REGULATORY AND JURISDICTIONAL AGENCY SUPPORT. The City agrees to support and provide assistance where applicable, to the District, in the event permits, approvals or other documentation are required from regulatory or jurisdictional agencies (e.g. Regional Water Quality Control Board or Local Agency Formation Commission) for the transfer of the Sewer Collection Facilities to be finalized. The District, at its own expense, shall be the lead agency and shall secure the necessary permits or approvals required from regulatory or jurisdictional agencies for the transfer of the Sewer Collection Facilities. PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 6 12.0. REIMBURSEMENT BY CITY FOR RELOCATION. The City acknowledges that most of the Sewer Collection Facilities are located in the public right of way. In the event City requires District to relocate any portion of the Sewer Collection Facilities transferred by this Agreement after the Transfer Date, the City agrees to pay, in advance of commencement of construction, all costs incurred by the District for such relocation, including design and engineering fees, material costs and construction cost except as noted in Section 13.0. 13.0. AJUSTMENT OF WATER VALVE AND SEWER MANHOLE COVERS. The District agrees to adjust water valve and sewer manhole covers to grade at their cost for all water valve and sewer manhole covers within City right-of-way or City easements upon written request of the City. When the adjustments are related to a City construction project, the City shall submit the unit costs for such work to the District. The District shall approve or disapprove the unit costs within 10 working days. If the unit costs are approved, the District shall authorize the City to perform the work and reimburse the City for the cost of such services. If the District does not approve the unit costs, the District shall perform the work itself in coordination with the City's construction contractor. When the adjustment request is not related to an ongoing City construction project, the adjustments shall be completed by the District within 15 working days. 14.0. COORDINATION OF DISTRICT AND CITY PROJECTS. The District and City shall meet as required to coordinate proposed projects to minimize disruption to the public and to avoid destruction of newly placed improvements. District and City staff shall meet to review and discuss their seven year Capital Improvement Programs and to plan projects accordingly. 15.0. TRANSFER OF SUPLUS PROPERTY Subject to the terms and conditions of this Agreement, the District hereby transfers and assigns to the City, and City accepts, all of the District's right, title and interest in and to the asset known as the "Brush Canyon Chlorination Building", located on the east side of Brush Canyon Park. Brush Canyon Chlorination Building encompasses Parcel 1 on Exhibit "B" hereto and will be declared surplus and transferred to the City within six (6) months of the Transfer Date. 16.0. LIMITED ASSUMPTION OF LIABILITIES. The District shall assume the following listed liabilities for the ongoing operation of the Sewer Collection Facilities. 16.1. All accounts payable first. accruing from and after the Transfer Date. The City shall retain all responsibility for collection and recovery of accounts payable accruing prior to the Transfer Date. PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 7 16.2. All performance obligations, including payment, under the following contracts between the City and third parties related to the Sewer Collection Facilities. The City assumes all responsibility for obtaining written assignment or transfer of these contracts, as may be required. 17.0. INDEMNIFICATION. 17.1. Except as specifically identified and assumed in this Agreement, the District shall not assume any liabilities or potential liabilities of the City, known or unknown, that existed as of the Transfer Date relating to contracts, claims, lawsuits, debts, permits, fines, penalties, interest, treatment charges, or other costs related to the Sewer Collection Facilities. City shall indemnify, hold harmless and defend the District at the City's own cost, expense and risk, against any and all claims, suits, actions or other legal proceedings of every kind that may be brought or instituted against District or any of its directors, officers, employees, agents, representatives, successors and/or assigns relating to the Sewer Collection Facilities during any period of time prior to the Transfer Date, irrespective of when the claim, suit, action or other legal proceeding was or is initiated. City shall pay and satisfy any judgment, award or decree that may be rendered against District or any of its directors, officers, employees, agents, representatives, successors and assigns or authorized volunteers, in any and all such aforesaid suits, actions, or other legal proceedings. 17.2. The District shall indemnify, hold harmless and defend the City at the District's own cost, expense and risk, against any and all claims, suits, actions or other legal proceedings of every kind that may be brought or instituted against City or any of its Council, officers, employees, agents, representatives, successors and/or assigns arising out of or relating to the obligations expressly assumed in this agreement to District's performance of its duties, as established herein, and/or relating to the Sewer Collection Facilities after the Transfer Date. 18.0. FEES AND COSTS. 18.1. Each Party shall bear its own fees, costs or expenses, including attorney's fees and consultant fees, incurred in connection with the preparation, negotiation, finalization, approval or documentation of this Agreement and the related documents and transactions contemplated herein, regardless of when incurred. 18.2. In the event of any action arising out of, or in connection with, enforcement of this Agreement, the prevailing Party shall be entitled to have and recover, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation, its attorney's fees. 19.0. NOTICES. Unless otherwise expressly stated in this Agreement, all notices, requests and other communications under this Agreement shall be in writing and shall be delivered (i) in person, (ii) by registered or certified mail, return receipt PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 8 i requested, (iii) by recognized overnight delivery service providing positive tracking of items (for example, Federal Express), or (iv) by facsimile or other electronic transmission if a copy is sent simultaneously by a method described in clause (i), (ii) or (iii), addressed as hereinafter provided or at such other address of which the City or the District shall have given notice as provided in this Section. All such notices, requests and other communications shall be deemed to have been sufficiently given for all purposes hereof only upon receipt by the party to whom such notice is sent. Notices by the parties may be given on their behalf by their respective attorneys. Notices should be provided in accordance with this Section at the following addresses: I District: General Manager Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 City: City Manager City of Yorba Linda PO Box 87014 Yorba Linda CA, 92885-8714 20.0. SEVERABILITY. If one or more provisions of this Agreement shall be held invalid, illegal or unenforceable, such provision shall, to the extent possible, be modified in such manner as to be valid, legal and enforceable but so as to most nearly retain the intent of the parties, and if such modification is not possible, such provision shall be severed from this Agreement. In either case, the balance of this Agreement shall be interpreted as if such provision were so modified or excluded, as the case may be, and shall be enforceable in accordance with its terms. 21.0. ENTIRE AGREEMENT. This Agreement, together with the Exhibits, contemplated hereby, embodies the entire understanding and agreement of the City and the District with respect to the subject matter of this Agreement and merges and supersedes all prior representations, agreements, and understandings, whether oral or written, between the City and the District with respect to the subject matter hereof, including, without limitation, any and all written or oral statement or representations by any official, employee, agent, attorney, consultant, or independent contractor of the City or the District. 22.0. COUNTERPARTS. This Agreement may be executed in two or more counterparts, including by means of faxed signature pages, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. PUBLIC SEWER TRANSFER AGREEMENT City of Yorba Linda Yorba Linda Water District Page 9 i IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be entered into as of the day and year written above. District: City: Yorba Linda Water District City of Yorba Linda r By By: c ael J. Bev Nancy Rik President of the and of Directors Mayor, City of Yorba Linda ATTEST ATTEST: Kenneth Vecchiarelli Marcia Brown, City Clerk Secretary of the Board of Directors City of Yorba Linda APPROVED AS TO FORM: APPROVED AS TO FORM: By:/ By: Arthur G. Kidman, General Counsel Todd Litfi , City Attorney McCormick, Kidman and Behrens, LLP City of Yorba Linda Attachments: Exhibit A: Sewer Collection Facilities Exhibit B: Brush Canyon Chlorinator Pl-i[:jL.IC SI:Wt~al fl~A,NSi~I_~I~ A{~}~f?IiMfiNE City of Yorba Lurda Yorba Linda Water District Page 10 1 - pp JUN 29 2011 A _ P, Q. E3 COX e7014 CA1. IFORNIA 19288-£3714 (114'+ 961 741© pp FAX t)9-3-7530 OFFICE OF THE CITY MANAGER June 28. 2011 Ken Vecchiarelli General Manager Yorba Linda Water District 1717 F. Miralonia Ave. Placentia, CA 92870 Re. Orange County Sanitation District Board Dear Ken; Prior to the Public Sewer Transfer Agreement ("Agreement") between the City of Yorba Linda ("City") and the Yorba Linda Water District ("District") goes into effect" I wanted to touch base: with you on an issue so that we are both on the same: page:. Apparently, the District is attempting to obtain a seat on. the Orange County Sanitation District OCSD") Board. Section 10 of t he Agrectnent states: The City agrees to support District membership representation on the Orange County Sanitation District Board and support the appointment of` a representative from the District. The. District representative shall be selected by the District's Board of Directors. As outlined in the letter dated August 18, 2010, from the OCSD's General Counsel Bradley Hogin of Woodruff, Spradlin & Smart in response to the District's initial inquiry about membership on the OCSD Board, Heaitih and Safety Code Section 4730.65 specifies the composition of the OCSD Board. Under Section. 47 30.65, other than for a few exceptions that do not apply to this situation, one member of each city council of each city located wholly or partially with the 0CSD is entitled to a seat on the OCSD Board. Therefore, the. City will continue to have a seat on the OCSI) Board after the Agreement goes into effect on July 1, 2011. Kett Vecchiarelli June ?8, 2011 Page Z The City, as Section 10 of the Agreement states and as you and I recently discussed, will support District membership as an additional member sitting along with the City on the QCSD Board. The City may do this by supporting a change to the legislation which currently prohibits District membership. However, the City will not relinquish its membership on the OCSD Board to the District and the City will not support any effort to remove the City from the OCSD Board in any manner. The Agreement merely requires the City to support District membership on the Board. The Agreement does not require the City to relinquish, and the City will not relinquish, its own membership on the Board. Very truly yours, CITY O YOR13A LINDA Steven A. Rudometkin Cc: John Andersen-OCSD Board Member/ City of Yorba Linda James Muth-General Manager/DCSD RESOLUTION NO. 11-19 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT REQUESTING A SEAT ON THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT WHEREAS, the Yorba Linda Water District was formed and operates under the County Water District Law (Water Code § 30000, et seq.) and thereby is authorized to acquire, construct and operate facilities for the collection, treatment and disposal of sewage, waste and storm water of the district and its inhabitants; and WHEREAS, the Yorba Linda Water District is the sole provider of sewer service within the community of Yorba Linda; and WHEREAS, when the Yorba Linda Water District acquired the last portion of the sewer system serving the community of Yorba Linda, the City of Yorba Linda agreed as follows: ORANGE COUNTY SANITATION DISTRICT REPRESENTATION. The City agrees to support District membership representation on the Orange County Sanitation District Board and support the appointment of a representative from the District. The District's representative shall be selected by the District's Board of Directors. WHEREAS, on June 28, 2011 the City of Yorba Linda wrote a letter to the Yorba Linda Water District (copy attached) supporting the District's request for a seat on the Board of Directors of the Orange County Sanitation District for a representative to by appointed by and from the Board of Directors of the Yorba Linda Water District; and WHEREAS, legal counsel to Orange County Sanitation District has advised Yorba Linda Water District that the County Sanitation District Act (Health & Safety Code §4700, et seq.) may need to be amended to accommodate a seat on the Board of Directors of the Orange County Sanitation District for a representative appointed by and from the Board of Directors of Yorba Linda Water District. Resolution No. 11-19 Requesting a Seaton the Board of Directors of the Orange County Sanitation District 1 NOW, THEREFORE, the Board of Directors of the Yorba Linda Water District does hereby resolve as follows: Section 1. The Board of Directors of the Yorba Linda Water District petitions the Board of Directors of the Sanitation District of Orange County to seat on the Board of Directors of the Orange County Sanitation District a representative to be appointed by and from the Board of Directors of the Yorba Linda Water District. Section 2. The Board of Directors further petitions the Board of Directors of the Sanitation District of Orange County to join with the Yorba Linda Water District and the City of Yorba Linda to seek, if deemed necessary, an amendment to the County Sanitation District Act to accommodate seating a representative on the Board of Directors of the Orange County Sanitation District to be appointed by and from the Board of Directors of the Yorba Linda Water District. Section 3. The General Manager is authorized and directed to deliver this resolution to the Board of Directors of the Orange County Sanitation District. PASSED AND ADOPTED this 8th day of December 2011 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: President Yorba Linda Water District ATTEST: Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman Kidman, Behrens & Tague, LLP Resolution No. 11-19 Requesting a Seaton the Board of Directors of the Orange County Sanitation District 2 ITEM NO. 10.3 AGENDA REPORT Meeting Date: December 8, 2011 Budgeted: Yes To: Board of Directors Funding Source: All Funds From: Ken Vecchiarelli, General Manager Presented By: Gina Knight, HR/Risk Manager Dept: Human Resources/Risk Management Reviewed by Legal: Yes Prepared By: Gina Knight, HR/Risk Manager CEQA Compliance: N/A Subject: Employee Agreements for the Period July 1, 2011 through June 30, 2012 SUMMARY: The District's Employees Association Bargaining Unit members accepted the District's offer of a single year agreement for the period of July 1, 2011 through June 30, 2012. Both the District's Supervisory/Confidential and Management Employee groups are unrepresented and are following suit with the same provisional changes where applicable. STAFF RECOMMENDATION: That the Board of Directors adopt: 1. Resolution No. 11-20, the Memorandum of Understanding and Pay Plan with the Yorba Linda Water District Employees Association; 2. Resolution No. 11-21, the Employee Compensation and Terms of Employment for the Supervisory/Confidential Employees; 3. Resolution No. 11-22, the Employee Compensation and Terms of Employment for Management Employees. All agreements are for the period of July 1, 2011 through June 30, 2012. COMMITTEE RECOMMENDATION: From the period of February 24, 2011 through November 2, 2011, staff met and conferred with representatives of the Yorba Linda Water District Employees Association to negotiate a Memorandum of Understanding (MOU) for FY 2011-2012. On Novemebr 17, 2011, the Employees Association held an election to agree to accept the 2011- 2012 MOU with changes to the Stand-by language. The highlights of the 2011-2012 MOU include: 1. One year contract; 2. No Cost of Living Adjustment; 3. Merit increases based on job performance; 4. Increases to Stand-by Compensation; 5. Changes to Stand-by language; 6. Implementation of a 4/10 Work Schedule; 7. Implementaion of a Two Tier Retirement for new hires (2% @ 60); 8. Requiring all new hires to pay 100% of the CalPERS employee contribution rate; 9. Elimination of Retiree Insurance Benefits for new hires; 10. A payment of $150 per FY for certificates acquired above and beyond the required Treatment and/or Distribution certification for a specific classification within the Operations Department; The District's past practice has been to adopt an Employee Compensation and Terms of Employment agreement with both the Supervisory/Confidential and Management Employee groups at the conclusion of the labor negotiations with the YLWD's Employees Association. Both agreements replicate the proposed MOU, with the exception of the Stand-by language, and increased Stand-by compensation, which is not included in both agreements. Resolution Nos. 11-21 and 11-22 are also attached to this report for the Board of Director's consideration. PRIOR RELEVANT BOARD ACTION(S): On January 13, 2011, the Board of Directors adopted Resolutions No. 11-01, 11-02 and 11-03 approving the Memorandum of Understanding for Fiscal Year 2011-2012 with the Yorba Linda Water District Employees Association (Resolution No. 11-01), the Employee Compensation and Terms of Employment for Supervisory/Confidential Employees (Resolution No. 11-02) and the Employee Compensation and Terms of Employment for Management Employees (Resolution No. 11-03). ATTACHMENTS: Narne: Description: Type: Resolution _No._11-20.pdf Resolution No. 11-20 Resolution Resolution No. 11-21.1?df Resolution No. 11-21 Resolution Resolution _No._11-22.pdf Resolution No. 11-22 Resolution Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 Res. 11-20 RC/GM 3-2 Roll Call MB and PH Voted No Res. 11-21 MB/RC 4-1 Roll Call PH Voted No Res. 11-22 MB/RC 4-1 Roll Call PH Voted No RESOLUTION NO. 11-20 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE MEMORANDUM OF UNDERSTANDING AND PAY PLAN BETWEEN THE DISTRICT AND THE YORBA LINDA WATER DISTRICT EMPLOYEES ASSOCIATION WHEREAS, District Personnel Rule 12 provides for the recognition of employee organizations in order to promote communication between the District, its employees and recognized employee organizations; and WHEREAS, District employees have elected to be represented by the Yorba Linda Water District Employees Association; and WHEREAS, the District has recognized the Yorba Linda Water District Employees Association as the recognized employee organization; and WHEREAS, an agreement between the District and the Yorba Linda Water District Employees Association exists and the details are set forth in the 2011- 2012 Memorandum of Understanding between the District and the Yorba Linda Water District Employees Association. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. The General Manager is authorized to execute the Memorandum of Understanding between the Yorba Linda Water District and the Yorba Linda Water District Employees Association for fiscal year 2011-2012 as attached hereto and by this reference incorporated herein including its attachments Exhibits "A" through "D". Section 2. That Resolution No. 11-01 is hereby rescinded. PASSED AND ADOPTED this 8th day of December 2011 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: President Yorba Linda Water District Resolution No. 11-20 Adopting the MOU and Pay Plan Between the District and the YLWD Employees Association 1 ATTEST: Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman Kidman, Behrens & Tague, LLP Resolution No. 11-20 Adopting the MOU and Pay Plan Between the District and the YLWD Employees Association 2 MEMORANDUM OF UNDERSTANDING 2011-2012 BY AND BETWEEN THE YORBA LINDA WATER DISTRICT AND THE YORBA LINDA WATER DISTRICT EMPLOYEES ASSOCIATION THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 526137.6 Y0030-013 TABLE OF CONTENTS Paqe ARTICLE 1. RECOGNITION .........................................................................4 ARTICLE 2. SALARY SCHEDULE ...............................................................4 Section 2.1 Salary Schedules ...........................................................4 Section 2.2 Employee PERS Contribution Rate ................................5 Section 2.3 Merit Increases ...............................................................5 Section 2.4 Acting Appointments ......................................................7 Section 2.5 Salary Deduction ............................................................8 Section 2.6 Probation 8 ARTICLE 3. OVERTIME AND COMPENSATORY TIME OFF ......................9 Section 3.1 Overtime .........................................................................9 Section 3.2 Compensatory Time .......................................................9 ARTICLE 4. STANDBY AND CALL OUT COMPENSATION ......................10 Section 4.1 Standby Compensation ................................................10 Section 4.2 Call-Out Compensation ................................................11 ARTICLE 5. INSURANCE ...........................................................................14 Section 5.1 Life Insurance ...............................................................14 Section 5.2 Health Insurance ..........................................................14 Section 5.3 Dental Insurance ..........................................................15 Section 5.4 Vision Coverage ...........................................................15 Section 5.5 Domestic Partners ........................................................16 Section 5.6 Retiree Insurance Benefits ...........................................16 Section 5.7 Cafeteria Plan ...............................................................17 Section 5.8 Long-Term Disability ....................................................18 ARTICLE 6. HOURS ...................................................................................18 ARTICLE 7. HOLIDAYS ..............................................................................20 ARTICLE 8. VACATION ..............................................................................21 ARTICLE 9. LEAVES ..................................................................................24 Section 9.1 Sick Leave ....................................................................24 Section 9.2 Disability Leave ............................................................26 Section 9.3 Leave of Absence Without Pay ....................................27 THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 2 526137.6 Y0030-013 Section 9.4 Maternity Leave ............................................................28 Section 9.5 Jury Duty/Court Testimony ...........................................28 Section 9.6 Bereavement Leave .....................................................29 Section 9.7 Emergency Leave Policy ..............................................29 ARTICLE 10. GRIEVANCE PROCEDURE ...................................................29 Section 10.1 Purpose 29 Section 10.2 Matters Subject to the Grievance Procedure ................30 Section 10.3 Informal Grievance Adjustment ....................................30 Section 10.4 Formal Grievance Procedure .......................................31 Section 10.5 General Conditions .......................................................31 ARTICLE 11. EMPLOYEE DISCIPLINE .......................................................33 Section 11.1 Forms of Discipline .......................................................33 Section 11.2 Procedure .....................................................................33 Section 11.3 Appeal of Disciplinary Action 34 ARTICLE 12. JOB POSTING ........................................................................37 ARTICLE 13. MISCELLANEOUS BENEFITS ...............................................37 Section 13.1 Safety Boot Allowance 37 Section 13.2 Reimbursement for Certificates ....................................37 Section 13.3 Education Reimbursement 38 Section 13.4 Uniforms .......................................................................40 Section 13.5 Job Description .............................................................40 Section 13.6 Extended Work Accommodation ..................................40 ARTICLE 14. DRUG POLICY .......................................................................41 ARTICLE 15. COMPLETION OF MEET AND CONFER ...............................41 ARTICLE 16. CONCERTED ACTIVITIES .....................................................42 ARTICLE 17. TERM OF AGREEMENT ........................................................43 ARTICLE 18. DISTRICT GOVERNING BOARD APPROVAL 43 THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 3 526137.6 Y0030-013 ARTICLE 1. RECOGNITION Pursuant to the provisions of the Government Code and the Rules and Regulations of the District, Yorba Linda Water District (hereinafter called the "District") has recognized the Yorba Linda Water District Employees Association, (hereinafter called the "Association") as the recognized representative of a bargaining unit consisting of the classifications listed in Exhibit "A" (hereinafter sometimes called "unit employees," "employees," "members" or "unit members") to this Memorandum of Understanding (hereinafter "MOU"). ARTICLE 2. SALARY SCHEDULE Section 2.1 Salary Schedules (a) For those employees who are employed as of the date of ratification of this MOU, the salary schedule attached hereto as Exhibit "B" will remain in effect beginning July 1, 2011 through June 30, 2012. The salary schedule reflects that no base salary increase is provided. (b) Subject to the singular exception of deducting employee health, dental, vision, supplemental life and supplemental accidental death and dismemberment (AD&D) insurance contributions over 24 payroll periods, the District employs 26 payroll periods of two (2) weeks each as a means of distributing compensation. (c) Upon implementing the 4/10 schedule, paychecks will be distributed on the Thursday following the end of a payroll period, with the payroll period commencing on a Sunday and ending on the last Saturday of the two (2) THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 4 526137.6 Y0030-013 week period. If the Thursday payday falls on a holiday, the pay shall be distributed on the prior day, a Wednesday. (d) Employee payroll deductions for the employee share of health, dental, vision, supplemental life and supplemental accidental death and dismemberment (AD&D) insurance premium contributions shall be amortized over 24 payroll periods and deducted during said 24 payroll periods. Section 2.2 Employee PIERS Contribution Rate During the remaining term of this MOU, as regards individuals employed by the District on or before the adoption date of the 2011-2012 MOU, the District shall pay the entire 7% of the employee's contribution rate with payments to be credited to the employee's individual account with PERS. The District's current contract as of the date of ratification with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. However, individuals hired by the District after the adoption date of the 2011-2012 MOU, shall be enrolled in the 2% at 60 retirement formula and shall pay 100% of the statutory CalPERS employee contribution to CalPERS. Presently, such employee contribution rate is 7% of compensation. Section 2.3 Merit Increases Merit Increases Unit employees may be considered for merit salary increases. These merit increases to steps within an established salary range shall not be automatic but may be granted only for continued or sustained improvement by the unit THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 5 526137.6 Y0030-013 employees in the effective performance of the duties of his/her position as determined within the District's sole discretion. Effective October 1, 2006, the District implemented a nine (9) step salary schedule with a 2.5% salary difference between steps replacing the District's previous five (5) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation Process Each employee will be annually reviewed on a one-year interval following completion of their probationary period. An employee who receives a meets Mob expectations evaluation shall be entitled to move one (1) step and an employee who receives an exceeds mob expectations evaluation, shall move up two (2) steps. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed beyond the two (2) week period, any subsequent salary increase to which the employee is entitled as a result of the performance review rating, shall be retroactive to the anniversary date. Effective December 1, 2006 or soon thereafter as possible, the District will implement a new performance evaluation form. Bargaining unit employee representatives will be invited to participate in any training given to management and supervisory employees in the use of the form. (Until implementation of the THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 6 526137.6 Y0030-013 new form, the existing performance evaluation form will remain in effect with the understanding that bargaining unit members may be given written goals that will be added to the new performance evaluation which will be used in evaluating future performance.) Section 2.4 Acting Appointments The Personnel Officer may appoint an employee to serve in a position on a temporary "acting appointment" basis. Although the District shall give reasonable consideration to an employee's expression of unwillingness to serve in an acting appointment, such expression shall not be controlling, and the District shall be empowered to make the acting appointment regardless of such expression by the employee. The District's decision to appoint an employee to an acting position shall not be subject to administrative or civil challenge. After serving in an acting position for 30 consecutive work days, the employee shall be paid prospectively on the 31St work day at an amount closest to 5% more than his/her normal rate of pay or shall be placed on step 1 of the range established for the acting position whichever is higher. However, in no case shall said acting position compensation be less than 4.5%. Eligibility for this "acting" compensation is contingent on the responsible supervisor determining that the employee has satisfactorily served the necessary consecutive work days in the acting position. For example, if an employee serves in an acting position for 29 consecutive work days, is removed, and reappointed 10 work days later for a period of 29 consecutive days, no acting compensation shall be paid. If an employee works for 45 consecutive work days in an acting position, is then THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 7 526137.6 Y0030-013 removed from the acting position and reappointed 10 working days later for 20 work days, no acting pay is earned during the 20 work day period. The employee shall return to his/her original position and salary step at the discretion of the Personnel Officer. The term of an "acting appointment" shall last not longer than one (1) year (365 consecutive calendar days.) Section 2.5 Salary Deduction The District shall maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. Section 2.6 Probation Effective October 1, 2006, all new hires shall be subject to a twelve (12) month probationary period. Such new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to successful completion of six (6) months of service. An existing employee who is promoted to a new position shall be required to serve a six (6) month promotional probationary period in the promotional position. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 8 526137.6 Y0030-013 ARTICLE 3. OVERTIME AND COMPENSATORY TIME OFF Section 3.1 Overtime A. Non-exempt FLSA unit employees covered by this Memorandum of Understanding who perform authorized work in excess of forty (40) hours in a seven (7) day work period, shall be compensated for such overtime work at the rate of one and one-half times his/her regular hourly rate of pay. Overtime shall be calculated to the nearest one-quarter hour of overtime worked. In order to receive overtime compensation, non-emergency overtime must be authorized in advance by the appropriate department manager and approved by the General Manager. B. Exempt employees covered by this Memorandum of Understanding shall be compensated for overtime at a straight time rate, pursuant to all of the conditions precedent to overtime eligibility as stated in Section 3(A) above. C. Sick leave hours which are utilized by the employee, shall not be considered hours worked for purposes of computing overtime eligibility, whether pursuant to this MOU or pursuant to the requirements of the FLSA. Additionally, vacation hours not authorized twenty-four (24) hours prior to use, shall not be considered hours worked for purposes of computing overtime eligibility, whether pursuant to this MOU or pursuant to the requirements of the FLSA. Utilized compensatory time off shall be considered hours worked for purposes of computing overtime eligibility. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 9 526137.6 Y0030-013 Section 3.2 Compensatory Time At the employee's option, overtime may be earned as "compensatory time off" instead of as cash. The maximum amount of compensatory time off which shall be accrued is forty (40) hours. Compensatory time off shall be credited at the rate of 1-1/2 hours of compensatory time off for each hour of overtime worked. At the employee's discretion, the employee may submit a written request to payroll for cash distribution of not greater than twenty (20) hours of accrued compensatory time off during any payroll period. Upon separation from employment, the employee shall be compensated at the then existing regular rate of pay for all accrued compensatory time off. An employee desiring to utilize compensatory time off shall submit a written application to a supervisor authorized to grant the use of the time off, and shall be allowed the time off, in 15 minute increments, unless in the supervisor's sole determination, use of the compensatory time off at the requested date and time, shall result in an undue hardship to the District. ARTICLE 4. STANDBY AND CALL OUT COMPENSATION (Implementation of the following 1.5 hour minimum compensation at the 1.5 premium rate shall be effective on and after Board adoption of this MOU) Section 4.1 Standby Compensation A unit employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than normal scheduled working hours, and not as an extension of a regularly scheduled shift, shall be THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 10 526137.6 Y0030-013 paid a flat fee for each day he/she is assigned to standby duty. In those instances where the standby occurs on Monday through and including Thursday, the flat fee during the term of this MOU shall be Thirty Five Dollars ($35.00). In those instances where the standby occurs on a District recognized holiday and/or Friday through and including Sunday, the flat fee during the term of this MOU shall be Fifty-Five Dollars ($55.00.) A "standby day" for purposes of calculating standby compensation shall be that period of time when a unit employee has been assigned to be available for purposes of handling emergency situations arising at times other than normally scheduled working hours and not as an extension of a regularly scheduled shift. (It is understood that standby duty for pump operations will be provided by qualified and available employees as assigned by the supervisor and/or operations manager, and that those individuals in Maintenance Worker I and Maintenance Distribution Operator II positions determined qualified by the District shall be eligible for standby duty. Otherwise, standby eligibility will be as existed prior to the date of this Memorandum of Understanding.) The pay for standby compensation may be accrued to the second payday in December and paid in a lump sum or it may be paid at the regular pay period in which the standby duty is completed. Section 4.2 Call-Out Compensation Call-out compensation shall be defined and governed as follows: A "call-out" occurs when a unit employee on assigned standby duty is required to return to a District-designated worksite or is otherwise required to THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 11 526137.6 Y0030-013 commence work following completion of the employee's regularly scheduled work shift and following the employee's departure from the worksite at the end of that regular scheduled work shift. Therefore, a "call-out" is not an extension of a regular scheduled work shift. Upon being initially "called-out" during each standby day, the employee shall be entitled to a minimum compensation of two (2) hours at 1.5 times the employee's base rate of pay, regardless of whether or not the initial call-out work is completed in less than two (2) hours time. During any standby day, there shall be only one, two (2) hour minimum compensation at 1.5 times the employee's base rate of pay. If a subsequent call-out commences during the period of time for which the employee has received the initial minimum compensation of two (2) hours, there shall not be an additional minimum compensation for this subsequent call-out. The employee shall be compensated at the rate of 1.5 times the employee's base rate of pay for all hours worked, over the initial two (2) hour minimum compensation provided because of the initial call-out. However, if a call-out occurs subsequent to the initial call-out and two (2) hours or more have elapsed between commencement of the initial call-out and commencement of the subsequent call-out, there shall be a one and one-half (1.5) hour minimum call-out compensation provided to the employee for this subsequent call-out. This one and one-half (1.5) hour minimum eligibility shall repeat itself throughout the standby period as long as there is a one and one half (1.5) hour or more passage of time between the initial of any subsequent call-out and the following call-out. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 12 526137.6 Y0030-013 EXAMPLE: Start Shift 0700 - End Shift 1630 1630 1700 1730 1800 1830 1900 1930 1945 2000 2030 2100 2130 2200 2230 2300 2400 Call out 10 30 30 commences minute minute minutes 1800 & ends phone call 1900 call = 2 hours x included .25 1.5 1.5 times in 2 hour hour hours base hourly minimum at 1.5 at 1.5 rate times times base base hourly hourly rate rate Call-out commences at 1800 hours and is completed at 1900 hours. The employee shall be paid two (2) hours compensation at 1.5 times the base hourly rate. At 1930 hours, the employee commences a ten (10) minute electronic call. No additional payment is due as the employee has already received the two (2) hour minimum. At 1945 hours, the employee commences a thirty (30) minute electronic call. The employee shall be paid for .25 additional hours at 1.5 times the base hourly rate, as the employee has already received the two (2) hour minimum. The call which lasted until 2015 hours commenced during the initial two (2) hour minimum payment period of time but exceeded that period by fifteen (15) minutes. However, if the initial call-out commenced at 1830 hours and is completed at 1900 hours and the next call-out commenced at 2030 hours, the employee would be eligible for a one and one-half (1.5) hour minimum call-out payment at 1.5 times the employee's base hourly rate, because one and one half (1.5) hours or more have passed between the initial call-out and the subsequent call-out. It would not be until a subsequent call-out was to commence on or after 2200 hours that the employee would be eligible for an additional one and one- half (1.5) hour minimum. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 13 526137.6 Y0030-013 Where a "call-out" requires the employee to leave his/her residence and respond to a designated worksite, computation of compensable work hours shall commence with and include travel time to and from the residence and the worksite. Compensable work hours shall also include the time spent on the telephone or other electronic device whereby the "call-out" is assigned and/or efforts by telephone or other electronic devise are undertaken to address the subject of the "call-out." ARTICLE 5. INSURANCE Section 5.1 Life Insurance The District shall continue to provide group life insurance, in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time permanent unit employee under age 70 on the first day of the month following their date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. An employee may increase the coverage by up to an additional $100,000 by authorizing the additional premium to be deducted from his/her salary. Section 5.2 Health Insurance The District shall pay 100% of the premium for hospital and medical insurance for all unit employees who work in excess of 30 hours per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward unit employee dependent coverage for covered employees with one dependent or up to 2/3 of the additional premium toward unit employee THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 14 526137.6 Y0030-013 dependent coverage for covered employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual employee shall pay the cost of the difference in premium, to be deducted from his/her salary to cover the employee's share of the dependent coverage. The employees shall have the option of selecting a District-designated Health Maintenance Organization ("HMO"). The District contribution for HMO coverage will be in accordance with this paragraph. Section 5.3 Dental Insurance The District shall pay 100% of the premium for dental insurance for all unit employees who work 30 hours or more per week, after they have worked for two calendar months, and 2/3 of the additional premium toward unit employee dependent coverage for covered employees with one dependent or 2/3 of the additional premium toward unit employee dependent coverage for covered employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual employee shall pay the cost of the difference in premium, to be deducted from his/her salary. The employees shall have the option of selecting "Delta Care" with the contribution for "Delta Care" to be in accordance with this paragraph. Section 5.4 Vision Coverage The District shall pay 100% of the premium, toward the premium for vision insurance for unit members who work more than 30 hours per week, THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 15 526137.6 Y0030-013 commencing the first day of the month following the month of hire and 2/3 of the additional premium toward dependent coverage for covered employees with one dependent, or 2/3 of the additional premium toward dependent coverage for covered employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual employee shall pay the cost of the difference in premium, to be deducted from his/her salary. Section 5.5 Domestic Partners Effective October 1, 2006, "dependent" shall include a domestic partner for whom a California State Registration Certificate is provided. Section 5.6 Retiree Insurance Benefits As regards individuals employed by the District on or before the adoption of the 2011-2012 MOU, and subject to carrier approval, the District shall pay the amounts provided in Sections 5.2, 5.3 and 5.4 of this Agreement for any employee who retires from the District for a period of time which is equivalent to one (1) year or pro-ration thereof on a monthly basis for each three (3) years of service to the District or pro-ration thereof on a quarterly basis. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) years of service with the District, must provide ninety (90) days notice of intent to retire, must remain in a retired status, and must retire from the District during the term of this Agreement while in good standing (did not retire after being provided written notice that disciplinary investigation/proceedings were pending which in the sole judgment of the District are reasonably anticipated to result in a THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 16 526137.6 Y0030-013 recommendation of dismissal from employment or which have resulted in a determination by the District to impose dismissal. If a dismissal is appealed and results in a final administrative decision, (and where appealable, a court determination) reinstating the employee, the withheld benefit shall be retroactively implemented to the date of dismissal.) If any benefit period remains when the employee or his/her spouse reaches ages 65, whichever is latest, the coverage shall end and convert to Medicare Supplement for the remainder of the benefit period. For purposes of this Agreement, retired status means that the employee shall not work for compensation for more than nine hundred sixty (960) hours in any fiscal year (July 1 through June 30). The District shall require an employee to certify under penalty of perjury that the employee has remained on retired status and/or to submit to such additional verification as the District deems necessary to demonstrate retired status. The retired employee must make any contribution required of a regular employee pursuant to Section 5.2, 5.3 or 5.4 prior to the first day of the month in which coverage is to be extended. Failure of an employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. Individuals hired after the adoption date of this 2011-2012 MOU, shall be ineligible to receive this benefit. Section 5.7 Cafeteria Plan To the extent lawful, the District shall extend its current plan under Section 125 of the Internal Revenue Code to cover unit employees. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 17 526137.6 Y0030-013 Section 5.8 Long-Term Disability The District shall provide a long-term disability plan for employees which has a 90-day elimination period and provides at least sixty percent (60%) of salary for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. ARTICLE 6. HOURS 1. The regular work week for all full-time unit employees covered by this MOU shall be forty (40) hours as scheduled by department heads. It is expressly understood the department manager may schedule maintenance and plant operation shifts which include evening, weekend and holiday work. (Specifically, the department manager may create crews consisting of two individuals, one from either a Sr. Maintenance Distribution Operator or Maintenance Distribution Operator III, and the other from a Maintenance Distribution Operator II or Maintenance Worker I position assigned to an on-duty maintenance shift available for emergency situations and other maintenance assignments that may be required to work Fridays, Saturdays or Sundays. Volunteers for such crews shall first be solicited. In the event that there are insufficient volunteers, all maintenance employees shall be assigned to such crews on a three (3) month rotating basis. Employees may work out trades, provided that the trade is completed within the same work week and one (1) day notice is given to the supervisor. Plant operators shall be assigned in accordance with past practice. For all unit employees with an average regular work week of forty (40) hours, the hourly rate of pay shall be twelve times the THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 18 526137.6 Y0030-013 monthly rate divided by 2,080 (40 hours times 52 weeks). An employee may request a part-time assignment which shall be granted at the sole discretion of the General Manager or his/her designee. 2. Effective as soon as is reasonably practicable after adoption of the 2011-2012 MOU, but not later than January 1, 2012 unit members shall be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule.) The parties agree, understand and acknowledge that management clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of the MOU or after, and that any such termination of the 4/10 schedule shall not be subject to the meet and confer process, either as to the management decision being made and/or as to the impact of that decision. In such case, the schedule shall revert to the 9/80 schedule as it existed immediately prior to implementation of the 4/10 schedule. Any District-proposed change to the 9/80 schedule shall be subject to the meet and confer process. Employees shall continue to earn sick leave at the rate of 3.70 hours per payroll period. 3. Those unit employees covered by this Memorandum of Understanding whose regularly scheduled forty (40) hour work week or special shift work week includes working hours after 6:00 P.M. and/or before 6:00 A.M. Monday through Thursday, and/or any hours on Friday, Saturday and/or Sunday and/or holidays, shall be paid a differential equal to their regular hourly rate plus five percent (5%) for each hour worked after 6:00 P.M. and/or before 6:00 A.M. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 19 526137.6 Y0030-013 Monday through Thursday, and/or all hours worked on Friday, Saturday and/or Sunday and/or holidays. ARTICLE 7. HOLIDAYS 1. Holidays for full-time unit employees covered by this Memorandum of Understanding (with the exception of employees assigned to special shift work for pumping plant operations and on-duty maintenance available for emergency situations) as set forth in Exhibit "C". 2. For purposes of holiday compensation, compensation shall be equal to the number of hours that the employee normally would have worked other than for the holiday. For those unit employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday, and a holiday falling on a Sunday, shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within 12 months following the accrual of each floating holiday. 3. Unit employees assigned to special shift work shall be entitled to receive one day of paid time off (an in-lieu holiday) on a day designated or approved by the District at the regular rate of pay for each holiday whether or not the holiday falls on a regularly scheduled workday for that employee, so long as the pumping plant is manned and/or a maintenance crew is on duty at work for emergency situations during the holiday period. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 20 526137.6 Y0030-013 4. If unit employees, other than employees assigned to special shift work, are required to work on a recognized holiday, they shall receive, in addition to the paid holiday, compensation equivalent to one and one-half (1-1/2) times their regular rate of pay for the time actually worked during a regularly scheduled holiday. 5. In order to be eligible for holiday pay, a unit employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. ARTICLE 8. VACATION 1. Unit employees covered by this Memorandum of Understanding shall receive annual vacation with pay in accordance with the following provisions: Full-time unit employees with an average regular work week of 40 hours shall accrue paid vacation at the following rate per month: 1St month but less 3.077 hrs/payroll period than 60 months Service 61 months but less 4.615 hrs/payroll period than 180 months Service 180 months plus 6.153 hrs/payroll period Service Part-time unit employees shall accrue paid vacation in proportion to the average or normal hours worked as a part-time employee. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 21 526137.6 Y0030-013 2. For vacation accrual, the last day of the month shall be considered the ending of the accrual period and all accruals for the preceding month or fraction of a month thereof shall be credited to the employee at this time; provided, however, that the date for determining a change in the accrual rate provided in paragraph 9.1(a) shall be the first day of the month on which the employee was hired by the District. 3. Paid vacation hours shall continue to accrue in accordance with the above provisions during any period of leave with pay. 4. All vacations shall be scheduled and taken in accordance with the best interest of the District and the department in which the employee is employed. 5. The maximum amount of vacation that may be taken at any given time shall be that amount that has accrued to the employee concerned. The minimum amount of vacation that may be taken at any given time shall be fifteen (15) minutes. 6. A unit employee shall be eligible to take any accrued vacation after completion of thirteen (13) pay periods during their original twelve (12) month probationary period. 7. Each unit employee shall have vacation time deducted in fifteen (15) minute increments. 8. The maximum vacation that may be accrued shall not be more than one and one-half (1-1/2) times the amount that may be accrued in one year of service. If the employee has accrued the maximum amount of hours of vacation, THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 22 526137.6 Y0030-013 no additional hours shall be accrued, nor shall the cash equivalent of what would have been excess hours, be earned by the employee. However, where in the sole discretion of the General Manager it is determined that requirements of the District are the sole reason for an employee being unable to timely schedule and utilize vacation time off, said employee may be provided authorization to accrue additional vacation time in an amount determined in the sole discretion of the General Manager. 9. Upon termination, a unit employee shall be compensated in cash at his/her current rate of pay for any vacation accrued but not taken. 10. In the event that any recognized holiday occurs during a unit employee's vacation, the vacation account shall not be debited for the holiday hours. The only vacation hours that shall be charged against the employee's accrued vacation time shall be those hours that the employee is regularly scheduled to work. 11. For the term of this MOU only, unit members who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that a minimum of one-half (1/2) the vacation time to which he/she is entitled within the same annual period of the sold vacation time remains in the employee's vacation account after the cash distribution. A member who has been employed by the District for more than one year may also buy from the District up to an additional forty (40) hours of vacation time within any calendar year for use during the same calendar year, provided that full and complete THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 23 526137.6 Y0030-013 payment has been made for the purchased vacation time by salary modification prior to use of the vacation time. It is expressly understood that this benefit is provided at the sole discretion of the District and shall automatically terminate upon the expiration of this MOU unless an extension is expressly agreed to by the District. ARTICLE 9. LEAVES Section 9.1 Sick Leave 1. Sick leave is provided for use if the employee is unable to work because of illness, and as otherwise allowed by law. 2. A unit employee eligible for paid sick leave shall be granted such leave for the following reasons: (a) Physical incapacity of the employee due to illness or injury. (b) Enforced quarantine of the employee in accordance with community health regulations. (c) Illness of a member of the employee's immediate family (child, parent, spouse or domestic partner) which requires the attendance of the employee (sick leave usage shall not exceed one half (1/2) of a year's accrual of sick leave.) (d) Routine medical or dental appointments for the employee only or illness of an emergency nature within the employee's immediate family. In order to receive sick pay for the routine medical or dental appointments, the employee must notify his immediate supervisor twenty-four (24) hours in advance; otherwise, sick leave will be denied. Sick leave for routine medical or THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 24 526137.6 Y0030-013 dental leave is for the length of the appointment only and for reasonable travel time to and from the appointment and the work site. 3. In the event that a unit employee is absent on paid sick leave in excess of one (1) day, or if the District has cause to believe that an employee is misusing sick leave, the District may require that the employee submit a written statement by a physician licensed by the State of California certifying that the employee's or the employee's family member's condition prevented him/her from performing the duties of his/her position. 4. Unit employees shall accrue annual sick leave with pay in accordance with the following provisions: Full-time unit employees with an average regular work week of forty (40) hours shall receive paid sick leave at the rate of 3.70 hours per payroll period. Part-time unit employees shall receive sick pay in proportion to the average or normal hours worked as a part-time, employee (e.g., an employee whose regular work week is twenty (20) hours shall receive one-half (1/2) day sick leave per month). Paid sick leave shall continue to accrue in accordance with the above provisions during any period of leave with pay. 5. Each unit employee may use sick leave in fifteen (15) minute increments. An employee with a regular workday of ten (10) hours shall have ten (10) hours deducted from his/her accrued sick leave time for each regularly scheduled working day that he/she is on paid sick leave. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 25 526137.6 Y0030-013 6. In the event that any paid holiday occurs during a period when a unit employee is on paid sick leave, the employee's sick leave account shall not be debited for what would otherwise be a holiday usage. The only sick leave hours that shall be charged against the employee's accrued sick leave shall be those hours that the employee is regularly scheduled to work. 7. A unit employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of his final salary for 3/8 of his/her accumulated days of sick leave, if any, at the time of separation from active employment. If the employee should die, his/her estate shall be entitled to such payment. Section 9.2 Disability Leave 1. In situations where a unit employee has been injured in a non-duty accident and his/her disability leave exceeds one calendar month or the total use of his/her accumulated leaves, including sick leave, paid time off and vacation exceeds one calendar month, that portion of the leave exceeding 30 calendar days, shall constitute a break in service and his/her merit review dates and anniversary date will be adjusted accordingly. 2. An injured employee may elect to take as much of his/her accumulated sick leave, or his/her accumulated vacation as when added to his/her disability indemnity will result in a payment to him/her of not more than his/her full salary or wage. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 26 526137.6 Y0030-013 Section 9.3 Leave of Absence Without Pay 1. Department managers may grant a regular or probationary unit employee leave of absence without pay for a period not to exceed two (2) weeks. Such leaves shall be reported to the Personnel Officer in the manner and method which he/she shall prescribe. 2. The General Manager may grant a regular or probationary unit employee a leave of absence without pay or seniority for a period not to exceed six (6) months. After six (6) months, the leave of absence may be extended if authorized by the Board of Directors. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request. Approval shall be in writing from the General Manager or his/her designee and entirely within his/her discretion. 3. In situations where a unit employee shall request leave without pay for a period in excess of one (1) calendar month, he/she shall submit to the District any and all actual premiums for any and all insurance coverage. If the employee chooses not to submit any or all of these premiums, his/her coverage shall be terminated within the limits prescribed by the benefit carriers and will be reinstated within the limits prescribed by the benefit carrier at the time of his/her reinstatement by the District. 4. Upon expiration of a regularly approved leave or within twenty-four (24) hours notice to return to duty, the unit employee shall be reinstated in the position held at the time the leave was granted. Failure on the part of a unit employee on leave to report promptly at its expiration, or within forty-eight (48) THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 27 526137.6 Y0030-013 hours after notice to return to duty shall be cause for immediate discharge. The depositing in the United States mail of a first-class postage-paid letter addressed to the unit employee's last known place of residence shall be reasonable notice. Section 9.4 Maternity Leave Maternity leave with or without pay shall follow the same procedures as leave granted for other disabilities provided, however, that an employee who has exhausted all accrued sick leave, compensatory time and vacation time shall be entitled to an unpaid leave of absence for a total of four (4) months leave when combined with sick leave, vacation and compensatory time, provided that the employee furnishes to District a physician's verification of inability to work. Each request for maternity leave must be accompanied by a statement from a licensed physician verifying the pregnancy, the last day the unit member may work, and the expected date of return to work. In no case will the expectant mother be allowed to work beyond the date specified by her physician, and notification must be given to the District thirty (30) days prior to the last scheduled date of work. Section 9.5 Jury Duty/Court Testimony A full-time unit employee required to serve as a trial juror shall be entitled to be absent from his/her duties during the period of such service. During these periods of service, the employee shall receive full compensation from the District for a period not to exceed 10 working days for each period of jury duty. If court records indicate that the employee advised the court of this 10 working day limit, and the employee is nonetheless selected for a jury where the jury duty exceeds THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 28 526137.6 Y0030-013 10 working days, the excess days shall be paid by the District, if witness fees or juror fees, except mileage reimbursement, are submitted to the District. Section 9.6 Bereavement Leave Upon the death of a member of an employee's immediate family, an employee shall be entitled to use up to three (3) days of District-paid bereavement leave for attendance at funeral services and conduct of business associated with the deceased. Immediate family shall include spouse, child, brother, sister, parent, parent-in-law, grandparent, grandchild, son-in-law, daughter-in-law, stepparent, stepbrother, stepsister, stepchild, a state registered domestic partner or any other relative living in the same household. The General Manager, at his/her sole discretion, may allow the employee to use up to an additional four (4) days of sick leave for this purpose or use of such leave for bereavement of non-immediate family members. Section 9.7 Emergency Leave Policy The emergency leave policy is attached hereto as Exhibit "D." ARTICLE 10. GRIEVANCE PROCEDURE Section 10.1 Purpose The purpose of this section is to enhance communications between the District and unit employees by providing a fair and impartial review and consideration of grievances at the level closest to their point of origin within a reasonable time period without jeopardizing the employee's position or employment. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 29 526137.6 Y0030-013 Section 10.2 Matters Subject to the Grievance Procedure 1. A grievance may be filed for the alleged violation of this Memorandum of Understanding. 2. The grievance procedure shall not be used to establish new policies or change any existing rules. It shall not be used in matters resulting from any form of disciplinary action or evaluation content. Section 10.3 Informal Grievance Adjustment 1. Whenever possible, a unit employee who has a complaint shall try to solve the problem through informal discussion with his/her supervisor not later than 10 working days after the aggrieved employee knew or reasonably should have known of the basis for commencing the grievance procedure. The supervisor shall make whatever investigation he/she deems necessary and reply in writing within ten (10) working days. Any matters for which he/she does not have authority to make a decision shall be brought to the attention of a higher level supervisor who does have the proper authority. 2. If the unit employee is not satisfied with the decision reached through the informal discussion, and/or some other extenuating circumstances exist, he/she shall in writing bring the matter to the attention of the next level of authority not later than ten (10) working days after receipt of the informal decision. The higher level supervisor shall make whatever investigation he/she deems necessary and reply in writing not later than ten (10) working days after receipt of the written grievance. If the employee is still not satisfied with the THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 30 526137.6 Y0030-013 decision, he/she may file a formal grievance within ten (10) working days of receipt of the higher level supervisor's written decision. Section 10.4 Formal Grievance Procedure 1. The formal grievance procedure may be followed only after failure to resolve a problem through informal grievance adjustment. If the unit employee is not in agreement with the informal written decision reached, he/she may, within ten (10) working days of the receipt of the higher level supervisor's written decision, file a formal grievance in writing with the Personnel Officer with a copy to the General Manager. The Personnel Officer shall make whatever investigation he/she deems necessary to allow fair consideration of the situation and shall present a written reply to the employee within ten working days after receipt of the written grievance. A copy of the reply shall be forwarded to the General Manager. 2. If the unit employee is not satisfied with the decision of the Personnel Officer, he/she may file a written appeal to the General Manager within five (5) working days after having received the written reply of the Personnel Officer. Within ten (10) working days of receipt of the written appeal, the General Manager shall make a written decision which shall be final and binding on all parties. The General Manager may conduct whatever investigation and/or meeting(s) which he/she deems appropriate. Section 10.5 General Conditions 1. The Personnel Officer shall receive and retain copies of all written materials pertaining to the grievance. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 31 526137.6 Y0030-013 2. A unit employee may represent himself/herself or at his/her own expense, select whomever he/she desires to represent him/her in the grievance procedure. 3. If a unit employee fails to proceed with a grievance within any of the time limits specified in the section, the grievance shall be deemed denied with no further basis for appeal. 4. If a District supervisor/manager below the level of the General Manager fails to reply within any of the time limits specified in this section, the grievance shall be deemed denied. The time limits for appeal of a denied grievance shall commence running either upon receipt by the grievant of a timely written grievance rejection, or absent such rejection, at the end of the supervisory reply period, where no written rejection has been provided. 5. Any of the time limits specified in this section may be extended when mutually agreed upon by all parties concerned. 6. Either the grievant, or the Personnel Officer or General Manager, may request a meeting to review the grievance prior to a decision. 7. When it is grievant or designated representative to attend a grievance meeting or hearing with management during the work day, he/she will be released without loss of pay in order to permit participation in the foregoing activities provided advance arrangements are made with the employee's department head. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 32 526137.6 Y0030-013 ARTICLE 11. EMPLOYEE DISCIPLINE Section 11.1 Forms of Discipline The employment of every unit employee who has passed probation shall be subject to suspension, demotion or dismissal for cause. Section 11.2 Procedure 1. When a unit employee who has passed probation is to be dismissed, demoted or suspended without pay, specific written charges shall be prepared and presented by the employee's department manager for action by the Personnel Officer. 2. The Personnel Officer shall provide such a unit employee with written notice of the proposed action, the date it will be effective, the charge(s) on which the proposal is based, and relevant written materials, written reports and documents, and notification that the employee is entitled to respond to the charges as provided below. Prior to the effective date of the proposed action, such a unit employee shall have the right to file with the Personnel Officer a written response to the charges or request the right to make an oral response. The Personnel Officer may act upon the initial written or oral presentation of the employee or may request that the employee submit a further response in writing, or permit the employee a further oral presentation. Failure of the employee to make a written response or request an oral presentation shall constitute waiver of this pre- disciplinary provision. At his/her own expense, the employee shall be entitled to THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 33 526137.6 Y0030-013 be represented by counsel or other person of his/her choosing during the course of the above proceedings. 3. The Personnel Officer shall provide written notice of his/her final determination to such a unit employee. The decision of the Personnel Officer shall be immediately implemented. Section 11.3 Appeal of Disciplinary Action 1. When disciplinary action has been taken by the Personnel Officer pursuant to Section 11.2 the employee shall have the right to appeal. Appeal shall not suspend the effective date of the discipline. Failure to timely appeal by the employee or his/her representative will make the action by the Personnel Officer final and conclusive. 2. Subject to paragraph 11.3.1, such a unit employee who has been disciplined, within fifteen (15) calendar days after having been furnished with a copy of the final notice of action by the Personnel Officer may appeal to the Board of Directors by filing with the General Manager a written answer to the charges and requesting a hearing thereon. 3. In the case of suspensions of less than ten (10) working days, the Board of Directors may appoint two (2) of its members to informally hear and make recommendations concerning the appeal. No written transcript of proceedings shall be required, but any documents submitted by either side shall be included with the report of the two (2) members. The report of the two (2) members shall be submitted to the full Board and shall include a summary of the THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 34 526137.6 Y0030-013 facts supporting their recommendation that the discipline be sustained, modified, or rejected. The determination of the full Board shall be final. 4. In the case of a disciplinary action other than set forth in paragraph 11.3.3, the Board of Directors shall appoint a hearing officer to conduct a hearing on appeal of any disciplinary action. 5. The hearing shall be conducted in the manner most conducive to determination of the truth, and the hearing officer shall not be bound by technical rules of evidence. 6. The hearing officer shall determine the relevancy, weight, and credibility of testimony and evidence. The hearing officer shall base his/her findings on the preponderance of evidence. 7. Each side will be permitted an opening statement and closing argument. The Personnel Officer or his/her representative shall first present his/her witnesses and evidence to sustain the charges and the unit employee will then present his/her witnesses and evidence in defense. 8. Each side will be allowed to examine and cross-examine witnesses. 9. Both the Personnel Officer and the unit employee may be represented by legal counsel. The unit employee may retain counsel or other representative, at his/her own expense. 10. The hearing officer shall, if requested by either party, subpoena witnesses and/or require production of other relevant records or relevant evidence. THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 35 526137.6 Y0030-013 11. The hearing officer may, prior to or during a hearing, grant a continuance for any reason he/she believes to be important to his/her reaching a fair and proper decision. 12. The hearing officer shall prepare a recommended decision and forward it to the Board of Directors no later than thirty (30) days after the matter of appeal was taken under submission by the hearing officer. The recommended decision shall set forth which charges, if any, the hearing officer feels are sustained and the reasons therefore. 13. Such an employee or his/she representative may obtain a copy of the transcript of the hearing upon request and agreement to pay for necessary costs. 14. After receiving the recommendation of the committee of the two (2) members or the hearing officer, and after consideration of the record only, the Board of Directors may sustain or reject any or all of the charges filed against the unit employee. If the Board of Directors modifies the discipline, the Board shall, consistent with its decision, order all or part of the employee's full compensation from the time of dismissal or suspension to be paid. 15. Such a unit employee who has been suspended or dismissed may be reinstated to his/her position as a result of a successful appeal. In the event of such reinstatement, the employee shall be entitled to his/her former status of employment. 16. Dismissal of a unit employee from the District service following the pre-disciplinary meeting at the Personnel Officer level, shall: THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 36 526137.6 Y0030-013 (a) Constitute a dismissal as of the same date from all positions which the unit employee may hold in the District service. (b) Terminate the salary of the unit employee as of the effective date of his/her dismissal except that he/she shall be compensated for any unpaid salary, unused vacation, compensatory time off, and "alternative time" to his/her credit as of the date of dismissal. ARTICLE 12. JOB POSTING All openings for employment positions in the District shall be posted for at least two (2) weeks prior to the deadline for submission of applications. ARTICLE 13. MISCELLANEOUS BENEFITS Section 13.1 Safety Boot Allowance Unit employees including those assigned to Engineering who are required to wear work boots in the performance of their job, as determined by the Department Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00, provided that the boots are from a list pre-approved by the General Manager or his/her designee. The difference between $200.00 and the amount actually used may be carried over for one year and combined with a subsequent allocation for boot reimbursement. Section 13.2 Reimbursement for Certificates The District shall reimburse unit employees for sums paid to the appropriate state agencies for obtaining or renewing of production or distribution certificates. In addition, a one-time per fiscal year payment of $150.00 per certificate shall be provided to an affected employee who has qualified for and THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 37 526137.6 Y0030-013 been issued a State of California Department of Health Services Treatment and/or Distribution certificate which has been determined in the sole discretion of the General Manager to be relevant to the employee's duties and which is other than a certificate which is a job requirement. The $150.00 payment shall apply for any Distribution and/or Treatment Certificates issued by the State of California Department of Health Services that are acquired above and beyond the required certification for a specific classification within the District's Operations Department and shall be issued during each year in which the applicable certificate(s) remains valid and remains other than a certificate which is a job requirement. The table below identifies the positions that require specific State of California certifications. CLASSIFICATION REQ'D TREATMENT REQ'D DISTRIBUTION PLANT OPERATOR II T2 D3 SR. PLANT OPERATOR T2 D3 MAINT. WORKER I D1 (REQUIRED TO ACHIEVE STEPS 8 AND 9 IN SALARY RANGE) MAINT. DIST. OPERATOR II D2 MAINT. DIST. OPERATOR III D3 SR. MAINT. DIST. OPERATOR D3 Section 13.3 Education Reimbursement The District shall provide educational reimbursement to unit employees for costs of tuition, fees, books and parking relating to educational courses taken and completed at accredited institutions at a rate not to exceed standard resident THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 38 526137.6 Y0030-013 fees as charged by the California State University. Tuition shall not be granted for on-line attendance or other attendances at what are referred to as "degree mills." For purposes of this MOU only, a "degree mill" is an organization that awards academic degrees and diplomas with substandard or no academic study and without recognition by official educational accrediting bodies. These degrees are often awarded based on vaguely construed life experience. Some such organizations claim accreditation by non-recognized/unapproved accrediting bodies set up for the purposes of providing a veneer of authenticity. Course work must be job related as determined and approved in advance by the General Manager. Proof of payment and successful completion of the course must accompany the reimbursement request on a form provided by the District. (If a licensing agency requires a minimum grade, that grade shall be the measure of "successful" course completion.) Employee shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period, shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee's closing check. Any remaining, non-reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this Section shall sign a written agreement THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 39 526137.6 Y0030-013 to comply with the terms of this section as a condition precedent to receipt of any such funds. Section 13.4 Uniforms The field uniforms provided to employees may include District-issued shorts and T-shirts which may only be worn in accordance with District established safety guidelines. Additionally, the District provides a District-funded cleaning service for the above pants and shirts with name and District logo. Section 13.5 Job Description The Association hereby agrees to the implementation of the job descriptions presented as of the date of ratification of this Agreement. Section 13.6 Extended Work Accommodation In any instance where at the direction of a supervisor, an affected employee works sixteen (16) or more consecutive hours during a 24 hour period of time said employee shall be provided at the end of the sixteen (16) consecutive hours or longer assignment, with six (6) consecutive hours of non work time before being compelled to commence a regularly scheduled shift or to commence other duties on behalf of the District. In any instance where use of the six (6) consecutive hour period results in the employee being excused from scheduled hours of work, the employee shall have said hours credited as compensable hours worked. In any instance where utilization of the six (6) consecutive hour period would result in there being three (3) or less hours of scheduled work shift time remaining should the employee return to his/her work assignment, a manager shall have discretion to relieve the affected employee of THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 40 526137.6 Y0030-013 the obligation to report to the District for the remainder of the scheduled hours of work. Where the manager exercises that discretion, the three (3) or less remaining hours of scheduled work shall be considered compensable hours worked. ARTICLE 14. DRUG POLICY In addition to any other District adopted drug policy, effective January 1, 1996, the Yorba Linda Water District must comply with the United States Department of Transportation regulations implementing the Federal Omnibus Transportation Employee Testing Act of 1991. Specifically, the District must comply with the regulations of the Federal Highway Administration (FHWA). Adoption of a policy is one of the District's obligations under the regulations, and it is the intent of the District to comply fully with both the letter and spirit of this law, as well as to continue to administer the District's Drug Free Workplace policy, adopted in 1993. ARTICLE 15. COMPLETION OF MEET AND CONFER It is understood that this MOU represents the sole and complete understanding between the parties and shall govern their entire relationship and shall be the sole source of any rights which may be asserted hereunder and that the parties shall not be obligated to meet and confer except pursuant to their mutual consent, or with respect to any subject or matter, specifically provided for by this MOU. The parties further understand that all rights not clearly and expressly limited by this MOU are expressly reserved to the District as evidenced by the EERR, even though not enumerated in this MOU. The express provisions THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 41 526137.6 Y0030-013 of this MOU constitute the only limitations upon the District's rights to determine, implement, supplement, change, modify, or discontinue in whole or in part any term or condition of employment or adopt any policy, rule, regulation or practice as the District deems fit or appropriate (herein described as "management rights",) provided however, that the District shall meet and confer as regards the impact of its exercise of "management rights," and shall comply with all federal and state laws relating to employee rights, opportunities and benefits. ARTICLE 16. CONCERTED ACTIVITIES 1. Apart from and in addition to existing legal restrictions upon remedies for work stoppages, the Association hereby agrees that neither it nor its members, agents, representatives or persons acting in concert with any of them, shall incite, engage or participate in any strike, walkout, slowdown, sick-out or other work stoppage of any nature against the District whatsoever or wheresoever located, including, but not limited to disputes which are related to the subject matter contained in this MOU; disputes between the District and any other organization, persons or employees; or jurisdictional disputes. In the event of any strike, walkout, slowdown, sick-out or other work stoppage or threat thereof against the District, the Association and its officers will take all steps reasonably within their control to end or avert the same. 2. Those represented by the Association shall not authorize, engage in, encourage, sanction, recognize or assist in any strike, walkout, sick-out or other work stoppage or picket in furtherance thereof, or participate in concerted interference in violation of this provision or refuse to perform duly assigned THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 42 526137.6 Y0030-013 services in violation of this provision. It is understood that any person represented by the Association found in violation of this provision will be subject to discipline, including termination, as determined appropriate by the District. ARTICLE 17. TERM OF AGREEMENT This agreement shall remain in force for the period of July 1, 2011 through June 30, 2012 by resolution of the governing board of the District. ARTICLE 18. DISTRICT GOVERNING BOARD APPROVAL It is the understanding of the District and the Association that this MOU shall have no force or effect whatsoever unless or until adopted by resolution of the governing board of the District. Following approval of the governing board, the District shall implement the terms of this MOU by appropriate resolution or other means. IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Memorandum of Understanding the day, month and year noted. YORBA LINDA WATER DISTRICT YORBA LINDA WATER DISTRICT EMPLOYEE'S Association John Brundahl Date Ken Vecchiarelli Date President General Manager Brian Vargas Date Gina Knight Date Vice President Human Resources & Risk Manager Jennifer Hill Date Director THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 43 526137.6 Y0030-013 Jimmy De Anda Date Director Eduardo Gutierrez Date Secretary Zane Woller Date Treasurer THE YLWD EMPLOYEES ASSOCIATION MOU 201112012 44 526137.6 Y0030-013 EXHIBIT A YORBA LINDA WATER DISTRICT BARGAINING UNIT EMPLOYEES ASSOCIATION SALARY RANGES AND AUTHORIZED CLASSIFICATIONS 07-01-2011 through 6-30-2012 CLASSIFICATION TITLE SALARY RANGES FLSA Accounting Assistant I BU17 NON-EX Accounting Assistant II BU21 NON-EX Construction Inspector BU24 NON-EX Customer Service Representative I BU15 NON-EX Customer Service Representative 11 BU17 NON-EX Customer Service Representative I I I BU19 NON-EX Engineering Secretary BU17 NON-EX Engineering Technician I BU20 NON-EX Engineering Technician 11 BU24 NON-EX Facilities Maintenance BU21 NON-EX GIS Administrator BU26 NON-EX GIS Technician BU24 NON-EX Information Systems Technician BU22 NON-EX Information Systems Technician II/Programmer BU24 NON-EX Instrumentation Technician BU25 NON-EX Maintenance Distribution Operator II BU20 NON-EX Maintenance Distribution Operator III BU23 NON-EX Maintenance Worker I BU 17 NON-EX Mechanic I BU17 NON-EX Mechanic 11 BU21 NON-EX Mechanic III BU23 NON-EX Meter Reader I BU16 NON-EX Meter Reader II BU18 NON-EX Meter Services Lead BU23 NON-EX Operations Assistant BU19 NON-EX Plant Operator I BU17 NON-EX Plant Operator 11 BU23 NON-EX Project Engineer BU26 EXMPT Sr. Fleet Mechanic BU26 NON-EX Sr. Maintenance Distribution Operator BU26 NON-EX Sr. Plant Operator BU26 NON-EX Water Quality Technician I BU20 NON-EX Water Quality Technician 11 BU22 NON-EX 350831.1 Y0030-008 Exhibit "B" Pay Plan Bargaining Unit Employees Effective July 1, 2011 thru June 30, 2012 Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 BU 1 Monthly $1,555.7942 $1,594.6891 $1,634.5563 $1,675.4202 $1,717.3057 $1,760.2384 $1,804.2443 $1,849.3504 $1,895.5842 Hourly $8.9757 $9.2001 $9.4301 $9.6659 $9.9075 $10.1552 $10.4091 $10.6693 $10.9361 BU 2 Monthly $1,633.5840 $1,674.4235 $1,716.2841 $1,759.1912 $1,803.1710 $1,848.2503 $1,894.4566 $1,941.8180 $1,990.3634 Hourly $9.4245 $9.6601 $9.9016 $10.1492 $10.4029 $10.6630 $10.9296 $11.2028 $11.4829 BU 3 Monthly $1,715.2631 $1,758.1447 $1,802.0983 $1,847.1508 $1,893.3296 $1,940.6628 $1,989.1794 $2,038.9089 $2,089.8816 Hourly $9.8957 $10.1431 $10.3967 $10.6566 $10.9231 $11.1961 $11.4760 $11.7629 $12.0570 BU 4 Monthly $1,801.0263 $1,846.0520 $1,892.2033 $1,939.5083 $1,987.9961 $2,037.6960 $2,088.6384 $2,140.8543 $2,194.3757 Hourly $10.3905 $10.6503 $10.9166 $11.1895 $11.4692 $11.7559 $12.0498 $12.3511 $12.6599 BU 5 Monthly $1,891.0776 $1,938.3546 $1,986.8134 $2,036.4838 $2,087.3959 $2,139.5808 $2,193.0703 $2,247.8970 $2,304.0945 Hourly $10.9101 $11.1828 $11.4624 $11.7489 $12.0427 $12.3437 $12.6523 $12.9686 $13.2929 BU 6 Monthly $1,985.6315 $2,035.2723 $2,086.1541 $2,138.3079 $2,191.7656 $2,246.5598 $2,302.7238 $2,360.2919 $2,419.2992 Hourly $11.4556 $11.7420 $12.0355 $12.3364 $12.6448 $12.9609 $13.2849 $13.6171 $13.9575 BU 7 Monthly $2,084.9131 $2,137.0359 $2,190.4618 $2,245.2233 $2,301.3539 $2,358.8878 $2,417.8600 $2,478.3065 $2,540.2641 Hourly $12.0283 $12.3291 $12.6373 $12.9532 $13.2770 $13.6090 $13.9492 $14.2979 $14.6554 BU 8 Monthly $2,189.1587 $2,243.8877 $2,299.9849 $2,357.4845 $2,416.4216 $2,476.8322 $2,538.7530 $2,602.2218 $2,667.2773 Hourly $12.6298 $12.9455 $13.2691 $13.6009 $13.9409 $14.2894 $14.6467 $15.0128 $15.3881 BU 9 Monthly $2,298.6167 $2,356.0821 $2,414.9841 $2,475.3587 $2,537.2427 $2,600.6738 $2,665.6906 $2,732.3329 $2,800.6412 Hourly $13.2613 $13.5928 $13.9326 $14.2809 $14.6379 $15.0039 $15.3790 $15.7635 $16.1575 BU 10 Monthly $2,413.5475 $2,473.8862 $2,535.7333 $2,599.1267 $2,664.1048 $2,730.7075 $2,798.9752 $2,868.9495 $2,940.6733 Hourly $13.9243 $14.2724 $14.6292 $14.9950 $15.3698 $15.7541 $16.1479 $16.5516 $16.9654 1 Exhibit "B" Pay Plan Bargaining Unit Employees Effective July 1, 2011 thru June 30, 2012 Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 BU 11 Monthly $2,534.2249 $2,597.5805 $2,662.5200 $2,729.0830 $2,797.3101 $2,867.2428 $2,938.9239 $3,012.3970 $3,087.7069 Hourly $14.6205 $14.9860 $15.3607 $15.7447 $16.1383 $16.5418 $16.9553 $17.3792 $17.8137 BU 12 Monthly $2,660.9361 $2,727.4595 $2,795.6460 $2,865.5372 $2,937.1756 $3,010.6050 $3,085.8701 $3,163.0169 $3,242.0923 Hourly $15.3516 $15.7353 $16.1287 $16.5319 $16.9452 $17.3689 $17.8031 $18.2482 $18.7044 BU 13 Monthly $2,793.9829 $2,863.8325 $2,935.4283 $3,008.8140 $3,084.0344 $3,161.1352 $3,240.1636 $3,321.1677 $3,404.1969 Hourly $16.1191 $16.5221 $16.9352 $17.3585 $17.7925 $18.2373 $18.6933 $19.1606 $19.6396 BU 14 Monthly $2,933.6821 $3,007.0241 $3,082.1997 $3,159.2547 $3,238.2361 $3,319.1920 $3,402.1718 $3,487.2261 $3,574.4067 Hourly $16.9251 $17.3482 $17.7819 $18.2265 $18.6821 $19.1492 $19.6279 $20.1186 $20.6216 BU 15 Monthly $3,080.3662 $3,157.3753 $3,236.3097 $3,317.2175 $3,400.1479 $3,485.1516 $3,572.2804 $3,661.5874 $3,753.1271 Hourly $17.7713 $18.2156 $18.6710 $19.1378 $19.6162 $20.1066 $20.6093 $21.1245 $21.6527 BU 16 Monthly $3,234.3845 $3,315.2441 $3,398.1252 $3,483.0783 $3,570.1553 $3,659.4092 $3,750.8944 $3,844.6668 $3,940.7834 Hourly $18.6599 $19.1264 $19.6046 $20.0947 $20.5970 $21.1120 $21.6398 $22.1808 $22.7353 BU 17 Monthly $3,396.1037 $3,481.0063 $3,568.0315 $3,657.2322 $3,748.6631 $3,842.3796 $3,938.4391 $4,036.9001 $4,137.8226 Hourly $19.5929 $20.0827 $20.5848 $21.0994 $21.6269 $22.1676 $22.7218 $23.2898 $23.8721 BU 18 Monthly $3,565.9089 $3,655.0566 $3,746.4330 $3,840.0939 $3,936.0962 $4,034.4986 $4,135.3611 $4,238.7451 $4,344.7137 Hourly $20.5726 $21.0869 $21.6140 $22.1544 $22.7082 $23.2760 $23.8579 $24.4543 $25.0657 BU 19 Monthly $3,744.2043 $3,837.8094 $3,933.7547 $4,032.0985 $4,132.9010 $4,236.2235 $4,342.1291 $4,450.6824 $4,561.9494 Hourly $21.6012 $22.1412 $22.6947 $23.2621 $23.8437 $24.4398 $25.0507 $25.6770 $26.3189 BU 20 Monthly $3,931.4146 $4,029.6999 $4,130.4424 $4,233.7035 $4,339.5461 $4,448.0347 $4,559.2356 $4,673.2165 $4,790.0469 Hourly $22.6812 $23.2483 $23.8295 $24.4252 $25.0358 $25.6617 $26.3033 $26.9609 $27.6349 2 Exhibit "B" Pay Plan Bargaining Unit Employees Effective July 1, 2011 thru June 30, 2012 Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 BU 21 Monthly $4,127.9853 $4,231.1849 $4,336.9645 $4,445.3887 $4,556.5234 $4,670.4365 $4,787.1974 $4,906.8773 $5,029.5492 Hourly $23.8153 $24.4107 $25.0209 $25.6465 $26.2876 $26.9448 $27.6184 $28.3089 $29.0166 BU 22 Monthly $4,334.3845 $4,442.7442 $4,553.8128 $4,667.6581 $4,784.3495 $4,903.9583 $5,026.5572 $5,152.2212 $5,281.0267 Hourly $25.0061 $25.6312 $26.2720 $26.9288 $27.6020 $28.2921 $28.9994 $29.7244 $30.4675 BU 23 Monthly $4,551.1038 $4,664.8814 $4,781.5034 $4,901.0410 $5,023.5670 $5,149.1562 $5,277.8851 $5,409.8322 $5,545.0780 Hourly $26.2564 $26.9128 $27.5856 $28.2752 $28.9821 $29.7067 $30.4493 $31.2106 $31.9908 BU 24 Monthly $4,778.6590 $4,898.1254 $5,020.5786 $5,146.0930 $5,274.7454 $5,406.6140 $5,541.7793 $5,680.3238 $5,822.3319 Hourly $27.5692 $28.2584 $28.9649 $29.6890 $30.4312 $31.1920 $31.9718 $32.7711 $33.5904 BU 25 Monthly $5,017.5919 $5,143.0317 $5,271.6075 $5,403.3977 $5,538.4826 $5,676.9447 $5,818.8683 $5,964.3400 $6,113.4485 Hourly $28.9476 $29.6713 $30.4131 $31.1734 $31.9528 $32.7516 $33.5704 $34.4097 $35.2699 BU 26 Monthly $5,268.4715 $5,400.1833 $5,535.1879 $5,673.5676 $5,815.4068 $5,960.7919 $6,109.8117 $6,262.5570 $6,419.1209 Hourly $30.3950 $31.1549 $31.9338 $32.7321 $33.5504 $34.3892 $35.2489 $36.1301 $37.0334 * In the event of a keying/formula discrepancy, all pay plans (salary matrices) are calculated @ 2.5% between each step and 5.0% between each range. 3 EXHIBIT C 2011-2012 HOLIDAY SCHEDULE 1. Independence Day 2. Labor Day 3. Veterans Day 4. Thanksgiving 5. Day after Thanksgiving 6. Christmas Eve 7. Christmas Day 8. New Years Day 9. Presidents Day 10. Memorial Day 11. Employee Chosen Floater 350310.1 Y0030-008 Yorba Linda Water District Policies and Procedures EXHIBIT D Policy No.: 7010-09-05 Effective Date: October 27, 2009 Prepared By: Gina Knight, HR Manager Applicability: District Wide POLICY: EMERGENCY LEAVE POLICY 1.0 PURPOSE The purpose of this policy is to establish guidelines whereby regular full-time employees may donate accrued leave hours to other employees who have experienced a personal or immediate family member's catastrophic illness or injury, which has created a financial hardship. 2.0 SCOPE The Yorba Linda Water District (District) recognizes it is in the District's interest to establish a policy that enables employees to donate on a voluntary and confidential basis a portion of their vacation, alternate, compensatory and/or administrative leave in increments of at least two (2) hours to fellow employees who have experienced a catastrophic illness or injury. This policy delineates procedures for the transfer of leave from one employee to another employee. Income received as a result of this policy will be governed by applicable IRS regulations. A. Definition of Terms 1. Catastrophic illness or injury is defined as a serious illness or injury expected to incapacitate the employee or immediate family member for an extended period of time creating a financial hardship, because the employee has exhausted all accumulated leave. Catastrophic illness or injury for these purposes is further defined as a debilitating illness or injury of the employee or an immediate family member, which will result in the employee being required to take time off from work for an extended period to care for the ill family member. As a result, the employee may suffer financial hardship having exhausted all of his/her accumulated leave. Page 1 350835.1 Y0030-008 2. Donor is defined as a regular full-time District employee who has passed his/her initial probation and has completed a voluntary request form to transfer leave to a fellow employee. 3. Immediate Family Member is defined as an employee's spouse, registered domestic partner, children, step-children, foster children, sisters, brothers, grandparents, grandchildren and parent. 4. Donated hours are defined as leave hours that an employee agrees to donate to another employee on catastrophic leave. 5. Recipient Employee is defined as a current regular full-time District employee who has completed his/her original probationary period and is receiving or planning to receive donated time. 6. Regular full-time employees are defined as a current full-time District employee who has completed his/her original probationary period. 7. 12-Month Period is defined as a 12-month period measured forward from the date an employee first receives donated hours. 3.0 PROCEDURES A. To receive or donate leave, as provided for in this policy, an employee must have completed his/her original probationary period. B. To receive donated leave time: 1. An employee/family member must be on an approved medical leave of absence resulting from a medical emergency for a minimum of 90 continuous work hours (approximately 10 working days); 2. An employee must have submitted a treating physician's off-work order verifying the medical necessity to be off work for at least 90 continuous working hours (approximately 10 working days); and 3. An employee shall be required to exhaust all of his/her available leave balances, inclusive of any balances accrued during the most recent pay period, if the employee is anticipated to be on a doctor approved medical leave for the time stated in the physician's off-work order. C. All medical documentation submitted to or otherwise obtained by the District shall be made a part of the employee's confidential medical file in the Human Resources Department and shall thereafter be covered by the Privacy Act. The District shall protect privacy and confidentiality. However, a Recipient Employee who chooses at his/her own discretion to make such fact or any other medical facts known to others such that the District's guarantee of confidentiality is then compromised cannot hold the District liable for failure to maintain such privacy and confidentiality. Page 2 350835.1 Y0030-008 D. A written request for receipt of transferred leave by the employee experiencing the catastrophic illness or injury must be submitted to the Human Resources Manager for approval. E. The Human Resources Manager will notify each employee requesting donated leave through this policy of the decision to approve the request for donated time. F. For the purpose of this policy, employees who have requested and been authorized to receive leave donations will be referred to as Recipient Employees. G. Transfer of Leave 1. Any regular full-time District employee desiring to donate leave time will need to complete a Donation of Accrued Leave Form (Exhibit B) indicating the number of leave hours to be donated and the name of the individual to receive the donated leave hours. All donations shall be voluntary and confidential (and the donor shall not receive any remuneration from the employee or representative of the employee). 2. Donor Employees may, on a voluntary and confidential basis, donate vacation, alternate, compensatory leave and/or administrative leave, to more than one recipient employee at the same time in increments of at least two (2) hours for each recipient employee. 3. Donor Employees donating hours under this policy must maintain: a. A minimum of 40 hours vacation time after donation. If the offered donation would result in a vacation time balance below 40 hours, only those hours in excess of the hours necessary to maintain the 40 hour minimum will be eligible for donation. b. A minimum of 20 hours alternate time after donation. If the offered donation would result in an alternate time balance below 20 hours, only those hours in excess of the hours necessary to maintain the 20 hour minimum will be eligible for donation. C. A minimum of 20 hours of compensatory time after donation. If the offered donation would result in a compensatory time balance below 20 hours, only those hours in excess of the hours necessary to maintain the 20 hours minimum will be eligible for donation. 4. Donated leave hours will be distributed to Recipient Employees as made available by Donor Employees. However, no more than 80 Page 3 350835.1 Y0030-008 hours will be distributed to any Recipient Employee during a bi- weekly pay period. Benefits received under this policy will be considered gross income and will be regulated according to applicable IRS rules. Such gross income may affect the amount of income received from other compensation programs provided by the employer. 5. The donated hours will be converted to dollars at the hourly rate of the donor. The dollars shall then be converted to sick leave at the hourly rate of the recipient of the donation. The appropriate hours of sick leave will then be credited to the recipient for use during the catastrophic illness or injury leave. 6. Recipient Employees utilizing leave donated to him/her pursuant to this Policy shall continue to earn all benefits, leave accruals, seniority, retirement credit, etc. as provided for under his/her respective (bargaining) agreement. H. Processing of Donated Hours 1. The Donor Employee shall submit the Donation of Accrued Leave Form to the Human Resources Department. Human Resources (or Payroll) will verify that the Donor Employee has sufficient vacation, alternate, compensatory, and/or administrative leave time to make the donation. If the Donor Employee has insufficient hours, the Donation of Accrued Leave Form will be returned to the Donor. Human Resources will ensure all requests to donate leave hours are in accordance with the guidelines of this policy. The Donor Employee shall designate from which types of leave accruals,- the donation shall be made. 2. The Human Resources Department will notify the Recipient Employee of the initial and future donations in writing. The names of the Donor Employees and amount donated will remain confidential. 3. The Payroll division will reduce the Donor Employee's designated accrued leave balance(s) by the number of hours donated. 4. To the extent that there are multiple donors for any one recipient, distributions to any one recipient shall be in equal amounts from each donor, to the extent sufficient individual donor hours exist. For example, assume there are five donors for recipient employee "A," with one of the five donors having donated 10 hours, and the other 4 donors having donated 2 hours each. Employee "A" is to be provided with a 10 hour distribution. Two hours would be deducted from each of the five donor accounts, resulting in one remaining donor account of eight hours. This eight hour amount is available for the next distribution. Page 4 350835.1 Y0030-008 5. The Payroll division will determine the value of the time donation based on the Recipient Employee's current hourly rate. a. A timecard will be generated for the Recipient Employee by their department manager with assistance from Human Resources identifying the donated hours for a specific pay period. Payroll will then process the timecard on the next available payroll. A check will be processed for the Recipient Employee as a regular payroll check and will be subject to applicable IRS regulations. b. The check will be mailed to the Recipient Employee's home unless other arrangements are made in advance with the Payroll division. 6. In the event an employee has reached an unpaid status, no future donations shall be processed for said catastrophic illness or injury. 4.0 RESPONSIBILITY ASSIGNMENTS RECIPIENT EMPLOYEE: Responsible for submitting a written request to the Human Resources Manager for approval. Responsible to provide the Human Resources Manager or designated representative with all documentation required in Section 3.0 of this Policy. Responsible to approve any solicitation of donors by signing a copy of Exhibit A, Approval of Solicitation for Donated Leave form. DONOR EMPLOYEE: Responsible to approve the donation of his/her leave by signing a copy of Exhibit B, Donation of Accrued Leave form. Responsible for submitting the Donation of accrued Leave form to the Human Resources Department by the Monday of a payroll week. HUMAN RESOURCES: Responsible to coordinate and approve the transfer of leave time between Donor and Recipient Employees. Responsible to verify that employees only donate leave as provided for in Section 3.0 of this policy. Page 5 350835.1 Y0030-008 Responsible to administer this policy and to periodically review and update said policy. PAYROLL DEPARTMENT: Responsible to adjust individual leave balances. 5.0 EXHIBITS Exhibit A - Approval of Solicitation for Donated Leave Form Exhibit B - Donation of Accrued Leave Form Exhibit C - Emergency Leave Policy Acknowledgement Form Approved: Kenneth R. Vecchiarelli Date General Manager Page 6 350835.1 Y0030-008 Exhibit A Yorba Linde Water District APPROVAL OF SOLICITATIONS FOR DONATED LEAVE As an employee who qualifies for the receipt of leave donated by other District employees, I hereby authorize the Human Resources Manager and/or designated representative to work with my representative, Name: , regarding the solicitation of donations on my behalf. I understand that in order to solicit donations, it might be necessary for the above individual representative designated by me, to release my name and the medical emergency which requires this solicitation and hereby authorize the release of said information. As a recipient of donated leave, I understand that certain conditions must be met before I can receive said donated leave and acknowledge that I have met all of those conditions as provided for under Emergency Leave Policy No. 7010-09-05. Additionally, I agree that to the extent that I am in receipt of State Disability, long term disability, workers compensation benefits, and/or any other disability related insurance benefits, I shall fully reimburse the donor accounts with said insurance benefits. Print Employee's Name Employee's Signature Date Signed I have private disability insurance: Yes ❑ No ❑ Having verified that the above named employee meets all the conditions for receiving donated leave from other District employees, I hereby authorize them to solicit leave on said employee's behalf. Human Resources Manager Date Signed Distribution: Employee's Personnel File Payroll Page 7 350835.1 Y0030-008 Exhibit B Yorba Linda Water District DONATION OF ACCRUED LEAVE I hereby voluntarily authorize the transfer of the following leave amounts from my leave balance(s) to I understand that said transfer is to assist a District employee who qualifies under the Emergency Leave Policy No. 7010-09-05 to receive leave from other employees due to medical emergencies. I understand that I cannot rescind this transfer, and I lose all rights to utilize the leave amounts once they have been transferred. The donation of leave is being made voluntarily, and I have not been offered nor accepted any remuneration for making this donation. Type of Leave Hours Vacation Leave Alternate Leave Compensatory Leave Administrative Leave Print Employee's Name Date Signed Employee's Signature Having verified that the above named employee meets all the conditions for donating leave, I hereby authorize the transfer of those hours of donated leave indicated above to _ employee's sick leave accrual. Human Resources Manager Date Signed Posted to the recipient employee's sick leave accrual on 200, by Distribution: Employee's Personnel File Payroll Page 8 350835.1 Y0030-008 7010-09-05 Exhibit C Yorba Linda Mater District Emergency Leave Policy Acknowledgement Form I acknowledge that I have received and read the provisions contained in this Emergency Leave Policy. I understand that it is my responsibility to consult my supervisor or the Human Resources Department if I have any questions that are not answered in the Policy. I also understand that the provisions in this Policy are guidelines and may not address all circumstances that may arise. In such case, the Human Resources Department shall apply the Policy based on factors including but not limited to: past practices, rules of statutory interpretation. EMPLOYEE'S NAME (printed): EMPLOYEE'S SIGNATURE: DATE: Distribution: Original to Personnel File Copy: Employee Page 9 350835.1 Y0030-008 RESOLUTION NO. 11- 21 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE EMPLOYEE COMPENSATION LETTER AND PAY PLAN FOR SUPERVISORY AND CONFIDENTIAL EMPLOYEES WHEREAS, the Yorba Linda Water District's Supervisory and Confidential employees exist as a group separate from the Yorba Linda Water District Employees Association; and WHEREAS, the last Supervisory and Confidential employees compensation letter was adopted on January 13, 2011; and WHEREAS, the Employee Compensation Letter and Pay Plan with the Supervisory and Confidential employees for fiscal year 2010-2011 expired on June 30, 2011; and WHEREAS, the Board of Directors desires to review the Supervisory and Confidential Compensation Letter and adjust the Pay Plan for the Supervisory and Confidential employees for fiscal year 2011-2012. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. The General Manager is authorized to execute the Supervisory and Confidential Employee Compensation Letter for fiscal year 2011-2012 as attached hereto and by this reference incorporated as Exhibit "A". Section 2. The Pay Plan, Salary Ranges and Authorized Classifications and Holiday Schedule for Supervisory and Confidential Employees are approved and adopted as attached hereto and by this reference incorporated herein as Exhibits "B" through "D". Section 3. That Resolution No. 11-02 is hereby rescinded. PASSED AND ADOPTED this 8th day of December 2011 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: President Yorba Linda Water District Resolution No. 11-21 Adopting the Employee Compensation Letter and Pay Plan for Supervisory and Confidential Employees 1 ATTEST: Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman Kidman, Behrens & Tague, LLP Resolution No. 11-21 Adopting the Employee Compensation Letter and Pay Plan for Supervisory and Confidential Employees 2 Exhibit A Resolution No. 11-21 Employee Compensation Letter And Pay Plan for Supervisory and Confidential Employees Fiscal years: 2011-2012 1. The General Manager shall prepare an Employee Compensation Letter for consideration by the Board of Directors. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Supervisory and Confidential employee group (Exhibit B). II. The District shall maintain the salary schedule attached hereto as Exhibit C for the period July 1, 2011 through June 30, 2012. The salary schedule reflects that no base salary increase is provided. III. The District's current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. IV. The District shall continue to pay the entire portion of the employee's contribution rate of CALPERS for individuals employed by the District on or before the adoption date of Resolution 12-01, which approves an amendment to the contract between the Yorba Linda Water District and CalPERS to provide Section 21353 (2% @ 60 Full formula). However, individuals hired by the District after the adoption date of Resolution 12-01 shall be enrolled in the 2% @ 60 retirement formula and shall pay 100% of the statutory CalPERS employee contribution to CalPERS. All payments will be credited to the employee's individual account with CalPERS. V. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to CalPERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VI. Each employee will be annually reviewed on a one-year interval following completion of their probationary period. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an employee who receives an exceeds job expectations evaluation, shall be allowed to move up to two (2) step. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being Supervisory and Confidential Compensation Letter 2011/2012 on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. VII. All new hires shall be subject to a twelve (12) month probationary period. Such new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to successful completion of six (6) months of service. An existing employee who has been promoted to a new position will be required to serve a six (6) month promotional probationary period on the new position. VIII. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Supervisory and Confidential Employee under age 70 on the first day of the month following their date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Supervisory and Confidential Employees may increase the coverage to up to five time's annual salary not to exceed $300,000 by authorizing the additional premium to be deducted from his/her salary. IX. The District shall pay 100% of the premium for hospital and medical insurance for all Supervisory and Confidential Employees who work in excess of 30 hours per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered employees with one dependent or up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Supervisory and Confidential Employee shall pay the cost of the difference in premium, to be deducted from his/her salary to cover the employee's share of the dependent coverage. Supervisory and Confidential Employees shall have the option of selecting a District-designated Health Maintenance Organization ("HMO"). The District contribution for HMO coverage will be in accordance with this paragraph. X. The District shall pay 100% of the premium for dental insurance for all Supervisory and Confidential Employees who work 30 hours or more per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with one dependent or up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Supervisory and Confidential Employees shall pay the cost of the difference in premium, to be deducted from his/her salary. Supervisory Supervisory and Confidential Compensation Letter 2011/2012 and Confidential Employees shall have the option of selecting "Delta Care" with the contribution for "Delta Care" to be in accordance with this paragraph. XI. District shall pay 100% of the premium, toward the premium for vision insurance for Supervisory and Confidential members who work more than 30 hours per week, on the first day of the month following their date of hire; and up to 2/3 of the additional premium toward dependent coverage for covered Supervisory and Confidential Employees with one dependent, or up to 2/3 of the additional premium toward dependent coverage for covered Supervisory and Confidential Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Supervisory and Confidential Employee shall pay the cost of the difference in premium, to be deducted from his/her salary. XII. Subject to carrier approval, the District shall pay the amounts provided in the paragraphs IX, X and XI of this Agreement for any Supervisory and Confidential Employee employed by the District on or before the adoption of Resolution 11-21 and who retires from the District for a period of time which is equivalent to one (1) year or pro-ration thereof on a monthly basis for each three (3) years of service to the District or pro-ration thereof on a quarterly basis. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) years of service with the District, must retire from the District after the date of this Agreement while in good standing and upon ninety (90) days written notice, and must remain in retired status. If any benefit period remains when the Supervisory and Confidential Employee or his/her spouse reaches ages 65, whichever is latest, and then coverage will convert to Medicare Supplement for the remainder of the benefit period. For purposes of this Agreement, retired status means that the Supervisory and Confidential Employee shall not work for compensation for more than nine hundred sixty (960) hours in any fiscal year (July 1 through June 30). The District may require a Supervisory and Confidential Employee to certify under penalty of perjury that the Supervisory and Confidential Employee has remained on retired status and/or submit to such additional verification, as the District deems necessary to demonstrate retired status. The retired Supervisory and Confidential Employee must make any contribution required of a regular Supervisory and Confidential Employee pursuant to paragraph IX, X and XI prior to the first day of the month in which coverage is to be extended. Failure of a Supervisory and Confidential Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. Supervisory and Confidential employees hired after the adoption of Resolution 11-21 shall be ineligible to receive this benefit. A Supervisory and Confidential Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of their final salary for 3/8 of their accumulated days of sick leave, if any, at the time of separation from active employment. If the Supervisory Supervisory and Confidential Compensation Letter 2011/2012 and Confidential Employee should die, his/her estate shall be entitled to such payment. XIII. To the extent possible, the District shall extend its current plan under Section 125 of the Internal Revenue Code to cover Supervisory and Confidential Employees. XIV. The District shall provide a long-term disability plan for Supervisory and Confidential Employees which has a 90-day elimination period and provides at least sixty percent (60%) of salary for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XV. Effective January 1, 2012, Supervisory and Confidential employees shall be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). XVI. In situations where a Supervisory and Confidential Employee has been injured in a non-duty accident and his/her disability leave exceeds one calendar month or the total of his/her accumulated leaves, including sick leave, paid time off and vacation, that portion of the leave exceeding 30 days or the total of accumulated leaves, whichever is more, shall constitute a break in service and his/her merit review dates and anniversary date will be adjusted accordingly. XVII. The District will pay up to a total of $2,000 annually to establish and administer a tax-advantaged flexible benefit plan, and a total of $5,000 annually to establish a tax advantaged dependent care plan. Plans will conform to the requirements of Section 125 of the Internal Revenue Code, and permits Supervisory and Confidential Employees to convert their share of insurance premiums, un-reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. Savings to the District through reductions to the payroll and worker's compensation tax base will accrue to the District and offset the costs of establishing and administering this program. XVIII. The District shall reimburse Supervisory and Confidential Employees for sums paid to the appropriate agencies for obtaining, or renewing, treatment and/or distribution certificates, and other professional certifications, registrations and job related training. XIX. Supervisory and Confidential Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00, provided that the boots are from a list pre-approved by the General Manager or his/her designee. The difference between $200.00 and the amount actually used may be carried over for one year and combined with a subsequent allocation for boot reimbursement. Supervisory and Confidential Compensation Letter 2011/2012 XX. The District shall provide educational reimbursement to Supervisory and Confidential Employees for costs of tuition, fees, books and parking relating to educational courses taken and completed at accredited institutions at a rate not to exceed standard resident fees as charged by the California State University. Course work must be job related as determined and approved in advance by the General Manager. Proof of payment and successful completion of the course must accompany the reimbursement request on a form provided by the District. Supervisory and Confidential Employee shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period, shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee's closing check. Any remaining, non-reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. XXI. Supervisory and Confidential Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that the Supervisory and Confidential Employee takes a minimum of one-half the vacation time to which he/she is entitled within the same annual period of the sold vacation time. A member who has been employed by the District for more than one year may also buy from the District up to an additional forty (40) hours of vacation time within any calendar year for use during the same calendar year, provided that full and complete payment has been made for the purchased vacation time by salary modification prior to use of the vacation time. It is expressly understood that this benefit is provided at the sole discretion of the District and shall automatically terminate upon the expiration of this Supervisory and Confidential letter unless an extension is expressly agreed to by the District. XXII. The Holiday schedule attached hereto as Exhibit D shall be in effect for full-time Supervisory and Confidential employees covered by this Supervisory and Confidential letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Supervisory and Confidential employee normally would have worked other than for the holiday. For those Supervisory ad Confidential employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday and a holiday falling on a Sunday, shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the Supervisory and Confidential Compensation Letter 2011/2012 above situation shall be used within 12 months following the accrual of each floating holiday. In order to be eligible for Holiday pay, a Supervisory and Confidential Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. XXIII. The District shall reimburse Supervisory and Confidential employees for sums paid to the appropriate state agencies for obtaining or renewing of production or distribution certificates. In addition, a one-time per fiscal year payment of $150.00 per certificate shall be provided to an affected employee who has qualified for and been issued a State of California Department of Health Services Treatment and/or Distribution certificate which has been determined in the sole discretion of the General Manager to be relevant to the employee's duties and which is other than a certificate which is a job requirement. The $150.00 payment shall apply for any Distribution and/or Treatment Certificates issued by the State of California Department of Health Services that are required above and beyond the required certification for a specific classification within the District's Operations Department and shall be issued during each year in which the applicable certificate(s) remains valid and remains other than a certificate which is a job requirement. The table below identifies the positions that require specific State of California certifications. CLASSIFICATION REQ'D TREATMENT REQ'D DISTRIBUTION CHIEF PLANT T3 D5 OPERATOR SCADA T2 D3 ADMINISTRATOR WATER D5 MAINTENANCE SUPERINTENDENT The term of this Compensation Letter for Supervisory and Confidential Employees is for the period of July 1, 2011 to June 30, 2012. Kenneth R. Vecchiarelli Date General Manager Supervisory and Confidential Compensation Letter 2011/2012 EXHIBIT B YORBA LINDA WATER DISTRICT SUPERVISORY AND CONFIDENTIAL EMPLOYEES SALARY RANGES AND AUTHORIZED CLASSIFICATIONS 7-1-2011 through 6-30-2012 CLASSIFICATION TITLE SALARY RANGES FLSA Assistant Administrator I SC25 EXEMPT Chief Plant Operator SC31 EXEMPT Customer Service Supervisor SC27 EXEMPT Executive Secretary SC25 NON-EX Human Resources Analyst SC25 EXEMPT Information Systems Administrator SC30 EXEMPT Management Analyst SC28 EXEMPT Personnel Technician SC23 NON-EX Public Information Officer SC30 EXEMPT SCADA Administrator SC30 EXEMPT Sr. Accountant SC25 EXEMPT Sr. Construction Inspector SC26 NON-EX Sr. Project Manager SC34 EXEMPT Water Maintenance Superintendent SC30 EXEMPT Water Quality Engineer SC29 EXEMPT Exhibit "C" Pay Plan Supervisory & Confidential Employees Effective July 1st, 2011 thru June 30, 2012 Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 SC 21 Monthly $4,127.9853 $4,231.1849 $4,336.9645 $4,445.3887 $4,556.5234 $4,670.4365 $4,787.1974 $4,906.8773 $5,029.5492 Hourly $23.8153 $24.4107 $25.0209 $25.6465 $26.2876 $26.9448 $27.6184 $28.3089 $29.0166 SC 22 Monthly $4,334.3845 $4,442.7442 $4,553.8128 $4,667.6581 $4,784.3495 $4,903.9583 $5,026.5572 $5,152.2212 $5,281.0267 Hourly $25.0061 $25.6312 $26.2720 $26.9288 $27.6020 $28.2921 $28.9994 $29.7244 $30.4675 SC 23 Monthly $4,551.1038 $4,664.8814 $4,781.5034 $4,901.0410 $5,023.5670 $5,149.1562 $5,277.8851 $5,409.8322 $5,545.0780 Hourly $26.2564 $26.9128 $27.5856 $28.2752 $28.9821 $29.7067 $30.4493 $31.2106 $31.9908 SC 24 Monthly $4,778.6590 $4,898.1254 $5,020.5786 $5,146.0930 $5,274.7454 $5,406.6140 $5,541.7793 $5,680.3238 $5,822.3319 Hourly $27.5692 $28.2584 $28.9649 $29.6890 $30.4312 $31.1920 $31.9718 $32.7711 $33.5904 SC 25 Monthly $5,017.5919 $5,143.0317 $5,271.6075 $5,403.3977 $5,538.4826 $5,676.9447 $5,818.8683 $5,964.3400 $6,113.4485 Hourly $28.9476 $29.6713 $30.4131 $31.1734 $31.9528 $32.7516 $33.5704 $34.4097 $35.2699 SC 26 Monthly $5,268.4715 $5,400.1833 $5,535.1879 $5,673.5676 $5,815.4068 $5,960.7919 $6,109.8117 $6,262.5570 $6,419.1209 Hourly $30.3950 $31.1549 $31.9338 $32.7321 $33.5504 $34.3892 $35.2489 $36.1301 $37.0334 SC 27 Monthly $5,531.8951 $5,670.1925 $5,811.9473 $5,957.2460 $6,106.1771 $6,258.8315 $6,415.3023 $6,575.6849 $6,740.0770 Hourly $31.9148 $32.7126 $33.5305 $34.3687 $35.2279 $36.1086 $37.0114 $37.9366 $38.8851 SC 28 Monthly $5,808.4898 $5,953.7021 $6,102.5446 $6,255.1082 $6,411.4860 $6,571.7731 $6,736.0674 $6,904.4691 $7,077.0808 Hourly $33.5105 $34.3483 $35.2070 $36.0872 $36.9893 $37.9141 $38.8619 $39.8335 $40.8293 Monthly $6,098.9143 $6,251.3872 $6,407.6719 $6,567.8637 $6,732.0603 $6,900.3618 $7,072.8708 $7,249.6926 $7,430.9349 Hourly 35.1860 36.0657 36.9673 37.8915 38.8388 39.8098 40.8050 41.8251 42.8708 (Page 2 of 2) Exhibit C Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 SC 30 Monthly $6,403.8600 $6,563.9565 $6,728.0555 $6,896.2568 $7,068.6633 $7,245.3798 $7,426.5143 $7,612.1772 $7,802.4816 Hourly $36.9453 $37.8690 $38.8157 $39.7861 $40.7807 $41.8003 $42.8453 $43.9164 $45.0143 SC 31 Monthly $6,724.0530 $6,892.1544 $7,064.4582 $7,241.0697 $7,422.0964 $7,607.6488 $7,797.8401 $7,992.7861 $8,192.6057 Hourly $38.7926 $39.7624 $40.7565 $41.7754 $42.8198 $43.8903 $44.9875 $46.1122 $47.2650 SC 32 Monthly $7,060.2557 $7,236.7621 $7,417.6811 $7,603.1232 $7,793.2012 $7,988.0313 $8,187.7321 $8,392.4254 $8,602.2360 Hourly $40.7322 $41.7506 $42.7943 $43.8642 $44.9608 $46.0848 $47.2369 $48.4178 $49.6283 SC 33 Monthly $7,413.2685 $7,598.6002 $7,788.5652 $7,983.2793 $8,182.8613 $8,387.4328 $8,597.1187 $8,812.0466 $9,032.3478 Hourly $42.7689 $43.8381 $44.9340 $46.0574 $47.2088 $48.3890 $49.5988 $50.8387 $52.1097 SC 34 Monthly $7,783.9319 $7,978.5302 $8,177.9935 $8,382.4433 $8,592.0044 $8,806.8045 $9,026.9746 $9,252.6490 $9,483.9652 Hourly $44.9073 $46.0300 $47.1807 $48.3602 749.5693 $50.8085 $52.0787 $53.3807 $54.7152 SC 35 Monthly $8,173.1285 $8,377.4567 $8,586.8931 $8,801.5655 $9,021.6046 $9,247.1447 $9,478.3233 $9,715.2814 $9,958.1634 Hourly $47.1527 $48.3315 $49.5398 $50.7783 $52.0477 $53.3489 $54.6826 $56.0497 $57.4509 SC 36 Monthly $8,581.7849 $8,796.3295 $9,016.2378 $9,241.6437 $9,472.6848 $9,709.5019 $9,952.2395 $10,201.0455 $10,456.0716 Hourly $49.5103 $50.7481 $52.0168 $53.3172 $54.6501 $56.0164 $57.4168 $58.8522 $60.3235 SC 37 Monthly $9,010.8742 $9,236.1460 $9,467.0497 $9,703.7259 $9,946.3191 $10,194.9770 $10,449.8515 $10,711.0978 $10,978.8752 Hourly $51.9858 $53.2855 $54.6176 $55.9830 $57.3826 $58.8172 $60.2876 $61.7948 $63.3397 * In the event of a keying/formula discrepancy, all pay plans (salary matrices) are calculated @ 2.5% between each step and 5.0% between each range. EXHIBIT D 2011-2012 HOLIDAY SCHEDULE 1. Independence Day 2. Labor Day 3. Veterans Day 4. Thanksgiving 5. Day after Thanksgiving 6. Christmas Eve 7. Christmas Day 8. New Years Day 9. Presidents Day 10. Memorial Day 11. Employee Chosen Floater 350310.1 Y0030-008 RESOLUTION NO. 11-22 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE EMPLOYEE COMPENSATION LETTER AND PAY PLAN FOR MANAGEMENT EMPLOYEES WHEREAS, the Yorba Linda Water District's Management employees exist as a group separate from the Yorba Linda Water District Employees Association; and WHEREAS, the last Management employees compensation letter was adopted on January 13, 2011; and WHEREAS, the Employee Compensation Letter and Pay Plan with the Management employees for fiscal year 2010-2011 expired on June 30, 2011. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. The General Manager is authorized to execute the Management Employee Compensation Letter for fiscal year 2011-2012 as attached hereto and by this reference incorporated as Exhibit "A". Section 2. The Pay Plan, Salary Ranges and Authorized Classifications and Holiday Schedule for Management Employees are approved and adopted as attached hereto and by this reference incorporated herein as Exhibits "B" through "D". Section 3. That Resolution No. 11-03 is hereby rescinded. PASSED AND ADOPTED this 8th day of December 2011 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: President Yorba Linda Water District Resolution No. 11-22 Adopting the Employee Compensation Letter and Pay Plan for Management Employees 1 ATTEST: Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman Kidman, Behrens & Tague, LLP Resolution No. 11-22 Adopting the Employee Compensation Letter and Pay Plan for Management Employees 2 Exhibit A Resolution No. 11-22 Employee Compensation Letter And Pay Plan for Management Employees Fiscal years: 2011-2012 1. The General Manager shall prepare an Employee Compensation Letter for consideration by the Board of Directors. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Management employee group (Exhibit B). II. The District shall maintain the salary schedule attached hereto as Exhibit C for the period July 1, 2011 through June 30, 2012. III. The District's current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. IV. The District shall continue to pay the entire portion of the employee's contribution rate of CalPERS for individuals employed by the District on or before the adoption date of Resolution 12-01, which approves an amendment to the contract between the Yorba Linda Water District and CalPERS to provide Section 21353 (2% @ 60 Full formula). However, individuals hired by the District after the adoption date of Resolution 12-01 shall be enrolled in the 2% @ 60 retirement formula and shall pay 100% of the statutory CalPERS employee contribution to CalPERS. All payments will be credited to the employee's individual account with PERS. V. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VI. Each employee will be annually reviewed on a one-year interval following completion of their probationary period. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an employee who receives an exceeds job expectations evaluation, shall be allowed to move up to two (2) steps. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent Management Compensation Letter 2011/2012 salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. VII. All new hires shall be subject to a twelve (12) month probationary period. Such new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to successful completion of six (6) months of service. An existing employee who has been promoted to a new position will be required to serve a six (6) month promotional probationary period in the new position. VIII. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Management Employee under age 70, on the first day of the month following their date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Management Employees may increase the coverage up to five time's annual salary not to exceed $300,000 by authorizing the additional premium to be deducted from his/her salary. IX. The District shall pay 100% of the premium for hospital and medical insurance for all Management employees who work in excess of 30 hours per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Management employee dependent coverage for covered employees with one dependent or up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management employee shall pay the cost of the difference in premium, to be deducted from his/her salary to cover the employee's share of the dependent coverage. The Management employees shall have the option of selecting a District-designated Health Maintenance Organization ("HMO"). The District contribution for HMO coverage will be in accordance with this paragraph. X. The District shall pay 100% of the premium for dental insurance for all Management employees who work 30 hours or more per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Management employee dependent coverage for covered Management employees with one dependent or up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Management employees shall pay the cost of the difference in premium, to be deducted from his/her salary. The Management employees shall have the option of selecting "Delta Care" with the contribution for "Delta Care" to be in accordance with this paragraph. Management Compensation Letter 2011/2012 XI. District shall pay 100% of the premium for vision insurance for Management employees who work more than 30 hours per week, on the first day of the month following their date of hire and up to 2/3 of the additional premium toward dependent coverage for covered Management Employees with one dependent, or up to 2/3 of the additional premium toward dependent coverage for covered Management Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Management Employee shall pay the cost of the difference in premium, to be deducted from his/her salary. XII. Subject to carrier approval, the District shall pay the amounts provided in the paragraphs IX, X and XI of this agreement for any Management Employee employed by the District on or before the adoption of Resolution 11-22 and who retires from the District for a period of time which is equivalent to one (1) year or pro-ration thereof on a monthly basis for each three (3) years of service to the District or pro-ration thereof on a quarterly basis. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) years of service with the District, must provide ninety (90) days notice of intent to retire must remain in a retired status and must retire from the District in good standing. If any benefit period remains when the Management Employee or his/her spouse reaches ages 65, whichever is latest, and then coverage will convert to Medicare Supplement for the remainder of the benefit period. For purposes of this Agreement, retired status means that the Management Employee shall not work for compensation for more than nine hundred sixty (960) hours in any fiscal year (July 1 through June 30). The District shall require a Management Employee to certify under penalty of perjury that the Management Employee has remained on retired status and/or to submit to such additional verification, as the District deems necessary to demonstrate retired status. The retired Management Employee must make any contribution required of a regular Management Employee pursuant to paragraph IX, X and XI prior to the first day of the month in which coverage is to be extended. Failure of a Management Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. Management employees hired after the adoption of Resolution 11-21shall be ineligible to receive this benefit. A Management Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of his final salary for 3/8 of his/her accumulated days of sick leave, if any, at the time of separation from active employment. If the Management Employee should die, his/her estate shall be entitled to such payment. XIII. To the extent possible, the District shall extend its current plan under Section 125 of the Internal Revenue Code to cover Management Employees. Management Compensation Letter 2011/2012 XIV. The District shall provide a long-term disability plan for Management Employees which has a 90-day elimination period and provides at least sixty percent (60%) of salary for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XV. Effective January 1, 2012, Management employees shall be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). XVI. In situations where a Management Employee has been injured in a non- duty accident and his/her disability leave exceeds one calendar month or the total of his/her accumulated leaves, including sick leave, paid time off and vacation, that portion of the leave exceeding 30 days or the total of accumulated leaves, whichever is more, shall constitute a break in service and his/her merit review dates and anniversary date will be adjusted accordingly. XVII. The District will pay up to a total of $2,000 annually to establish and administer a tax-advantaged flexible benefit plan, and a total of $5,000 annually to establish a tax advantaged dependent care plan. Plans will conform to the requirements of Section 125 of the Internal Revenue Code, and permits Management Employees to convert their share of insurance premiums, un-reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. Savings to the District through reductions to the payroll and worker's compensation tax base will accrue to the District and offset the costs of establishing and administering this program. XVIII. The District shall reimburse Management Employees for sums paid to the appropriate agencies for obtaining, or renewing, treatment and/or distribution certificates, and other professional certifications, registrations and job related training. XIX. Management Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00, provided that the boots are from a list pre-approved by the General Manager or his/her designee. The difference between $200.00 and the amount actually used may be carried over for one year and combined with a subsequent allocation for boot reimbursement. XX. The District shall provide educational reimbursement to Management Employees for costs of tuition, fees, books and parking relating to educational courses taken and completed at accredited institutions at a rate not to exceed standard resident fees as charged by the California State University. Course work must be job related as determined and approved in advance by the General Manager. Proof of payment and successful completion of the course must accompany the reimbursement request on a form provided by the District. Management Employee shall Management Compensation Letter 2011/2012 be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period, shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee's closing check. Any remaining, non- reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. XXI. Management Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that the Management Employee takes a minimum of one-half the vacation time to which he/she is entitled within the same annual period of the sold vacation time. A member who has been employed by the District for more than one year may also buy from the District up to an additional forty (40) hours of vacation time within any calendar year for use during the same calendar year, provided that full and complete payment has been made for the purchased vacation time by salary modification prior to use of the vacation time. It is expressly understood that this benefit is provided at the sole discretion of the District and shall automatically terminate upon the expiration of this Management letter unless an extension is expressly agreed to by the District. XXII. Management Employees will be entitled to either a District provided vehicle or a car allowance of up to $350.00/month as determined by the General Manager. The Assistant General Manager, Engineering Manager, Finance Director, IT Director and Human Resources Manager positions shall receive a car allowance of $350.00 per month. XXIII. Management Employees shall receive a maximum of forty (40) hours of administrative leave with pay each fiscal year. Unused administrative leave time at the end of each fiscal year, June 30, will be paid during the following month of July with said time being calculated at the employee's then straight time hourly rate. There will be no carry-over of administrative leave time to the next fiscal year. XXIV. The Holiday schedule attached hereto as Exhibit D shall be in effect for full-time Management employees covered by this Management letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Management employee normally would have worked other than for the holiday. For those Management employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday and a holiday falling on a Sunday, Management Compensation Letter 2011/2012 shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within 12 months following the accrual of each floating holiday. In order to be eligible for holiday pay, a Management Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. The term of this Compensation Letter for Management Employees is for the period of July 1, 2011 to June 30, 2012. Kenneth R. Vecchiarelli Date General Manager Management Compensation Letter 2011/2012 EXHIBIT B YORBA LINDA WATER DISTRICT MANAGEMENT EMPLOYEES SALARY RANGES AND AUTHORIZED CLASSIFICATIONS 7-1-2011 through 6-30-2012 CLASSIFICATION TITLE SALARY RANGES FLSA Assistant General Manager ME40 EXEMPT Engineering Manager ME37 EXEMPT Finance Director ME37 EXEMPT Human Resources and Risk Manager ME36 EXEMPT Information Technology Director ME37 EXEMPT Operations Manager ME37 EXEMPT Exhibit "C" Pay Plan Management Employees Effective July 1st, 2011 thru June 30, 2012 Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 ME 30 Monthly $6,403.8600 $6,563.9565 $6,728.0555 $6,896.2568 $7,068.6633 $7,245.3798 $7,426.5143 $7,612.1772 $7,802.4816 Hourly $36.9453 $37.8690 $38.8157 $39.7861 $40.7807 $41.8003 $42.8453 $43.9164 $45.0143 ME 31 Monthly $6,724.0530 $6,892.1544 $7,064.4582 $7,241.0697 $7,422.0964 $7,607.6488 $7,797.8401 $7,992.7861 $8,192.6057 Hourly $38.7926 $39.7624 $40.7565 $41.7754 $42.8198 $43.8903 $44.9875 $46.1122 $47.2650 ME 32 Monthly $7,060.2557 $7,236.7621 $7,417.6811 $7,603.1232 $7,793.2012 $7,988.0313 $8,187.7321 $8,392.4254 $8,602.2360 Hourly $40.7322 $41.7506 $42.7943 $43.8642 $44.9608 $46.0848 $47.2369 $48.4178 $49.6283 ME 33 Monthly $7,413.2685 $7,598.6002 $7,788.5652 $7,983.2793 $8,182.8613 $8,387.4328 $8,597.1187 $8,812.0466 $9,032.3478 Hourly $42.7689 $43.8381 $44.9340 $46.0574 $47.2088 $48.3890 $49.5988 $50.8387 $52.1097 ME 34 Monthly $7,783.9319 $7,978.5302 $8,177.9935 $8,382.4433 $8,592.0044 $8,806.8045 $9,026.9746 $9,252.6490 $9,483.9652 Hourly $44.9073 $46.0300 $47.1807 $48.3602 $49.5693 $50.8085 $52.0787 $53.3807 $54.7152 ME 35 Monthly $8,173.1285 $8,377.4567 $8,586.8931 $8,801.5655 $9,021.6046 $9,247.1447 $9,478.3233 $9,715.2814 $9,958.1634 Hourly $47.1527 $48.3315 $49.5398 $50.7783 $52.0477 $53.3489 $54.6826 $56.0497 $57.4509 ME 36 Monthly $8,581.7849 $8,796.3295 $9,016.2378 $9,241.6437 $9,472.6848 $9,709.5019 $9,952.2395 $10,201.0455 $10,456.0716 Hourly $49.5103 $50.7481 $52.0168 $53.3172 $54.6501 $56.0164 $57.4168 $58.8522 $60.3235 ME 37 Monthly $9,010.8742 $9,236.1460 $9,467.0497 $9,703.7259 $9,946.3191 $10,194.9770 $10,449.8515 $10,711.0978 $10,978.8752 Hourly $51.9858 $53.2855 $54.6176 $55.9830 $57.3826 $58.8172 $60.2876 $61.7948 $63.3397 ME 38 Monthly $9,461.4179 $9,697.9533 $9,940.4022 $10,188.9122 $10,443.6350 $10,704.7259 $10,972.3440 $11,246.6526 $11,527.8190 Hourly $54.5851 $55.9497 $57.3485 $58.7822 $60.2517 $61.7580 $63.3020 $64.8845 $66.5066 (Page 2 of 3) Exhibit C Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 ME 39 Monthly $9,934.4888 $10,182.8510 $10,437.4223 $10,698.3578 $10,965.8168 $11,239.9622 $11,520.9612 $11,808.9853 $12,104.2099 Hourly $57.3144 $58.7472 $60.2159 $61.7213 $63.2643 $64.8459 $66.4671 $68.1288 $69.8320 ME 40 Monthly $10,431.2132 $10,691.9935 $10,959.2934 $11,233.2757 $11,514.1076 $11,801.9603 $12,097.0093 $12,399.4345 $12,709.4204 Hourly $60.1801 $61.6846 $63.2267 $64.8074 $66.4275 $68.0882 $69.7904 $71.5352 $73.3236 ME 41 Monthly $10,952.7739 $11,226.5932 $11,507.2581 $11,794.9395 $12,089.8130 $12,392.0583 $12,701.8598 $13,019.4063 $13,344.8914 Hourly $63.1891 $64.7688 $66.3880 $68.0477 $69.7489 $71.4926 $73.2800 $75.1120 $76.9898 ME 42 Monthly $11,500.4126 $11,787.9229 $12,082.6210 $12,384.6865 $12,694.3036 $13,011.6612 $13,336.9528 $13,670.3766 $14,012.1360 Hourly $66.3485 $68.0072 $69.7074 $71.4501 $73.2364 $75.0673 $76.9440 $78.8676 $80.8392 ME 43 Monthly $12,075.4332 $12,377.3190 $12,686.7520 $13,003.9208 $13,329.0188 $13,662.2443 $14,003.8004 $14,353.8954 $14,712.7428 Hourly $69.6660 $71.4076 $73.1928 $75.0226 $76.8982 $78.8206 $80.7912 $82.8109 $84.8812 ME 44 Monthly $12,679.2049 $12,996.1850 $13,321.0896 $13,654.1168 $13,995.4698 $14,345.3565 $14,703.9904 $15,071.5902 $15,448.3799 Hourly $73.1493 $74.9780 $76.8524 $78.7738 $80.7431 $82.7617 $84.8307 $86.9515 $89.1253 ME 45 Monthly $13,313.1651 $13,645.9942 $13,987.1441 $14,336.8227 $14,695.2433 $15,062.6243 $15,439.1899 $15,825.1697 $16,220.7989 Hourly $76.8067 $78.7269 $80.6951 $82.7124 $84.7802 $86.8998 $89.0722 $91.2991 $93.5815 ME 46 Monthly $13,978.8234 $14,328.2939 $14,686.5013 $15,053.6638 $15,430.0054 $15,815.7556 $16,211.1494 $16,616.4282 $17,031.8389 Hourly $80.6471 $82.6632 $84.7298 $86.8481 $89.0193 $91.2447 $93.5259 $95.8640 $98.2606 ME 47 Monthly $14,677.7645 $15,044.7086 $15,420.8264 $15,806.3470 $16,201.5057 $16,606.54331$17,021.70691$17,447.24961 $17,883.4308 Hourly $84.6794 $86.7964 $88.9663 $91.1905 $93.4702 $95.8070 $98.2022 $100.6572 $103.1736 * In the event of a keying/formula discrepancy, all pay plans (salary matrices) are calculated @ 2.5% between each step and 5.0% between each range. (Page 3 of 3) Exhibit C Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 ME 48 Monthly $15,411.6527 $15,796.9441 $16,191.8677 $16,596.6644 $17,011.5810 $17,436.8705 $17,872.7923 $18,319.6121 $18,777.6024 Hourly $88.9134 $91.1362 $93.4146 $95.7500 $98.1437 $100.5973 $103.1123 $105.6901 $108.3323 ME 49 Monthly $16,182.2354 $16,586.7913 $17,001.4611 $17,426.4976 $17,862.1600 $18,308.7140 $18,766.4319 $19,235.5927 $19,716.4825 Hourly $93.3591 $95.6930 $98.0854 $100.5375 $103.0509 $105.6272 $108.2679 $110.9746 $113.7489 ME 50 Monthly $16,991.3472 $17,416.1308 $17,851.5341 $18,297.8225 $18,755.2680 $19,224.1497 $19,704.7535 $20,197.3723 $20,702.3066 Hourly $98.0270 $100.4777 $102.9896 $105.5644 $108.2035 $110.9086 $113.6813 $116.5233 $119.4364 * In the event of a keying/formula discrepancy, all pay plans (salary matrices) are calculated @ 2.5% between each step and 5.0% between each range. EXHIBIT D 2011-2012 HOLIDAY SCHEDULE 1. Independence Day 2. Labor Day 3. Veterans Day 4. Thanksgiving 5. Day after Thanksgiving 6. Christmas Eve 7. Christmas Day 8. New Years Day 9. Presidents Day 10. Memorial Day 11. Employee Chosen Floater 350310.1 Y0030-008 ITEM NO. 10.4 AGENDA REPORT Meeting Date: December 8, 2011 Budgeted: No To: Board of Directors Cost Estimate: Between $4,811 & $17,353 Funding Source: Sewer Operating Fund From: Ken Vecchiarelli, General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Reviewed by Legal: Yes Prepared By: Stephen Parker, Finance CEQA Compliance: N/A Manager Subject: Customer Refunds on Sewer Service Charges SUMMARY: In conjunction with the transfer of the City of Yorba Linda sewers to YLWD, effective July 1, 2011, and with the recent transfer of the City's sewer fund balance, District staff is prepared to refund sewer maintenance charges and assessments that were discovered to be duplicative between the two agencies, to those customers that were affected by these redundant charges. STAFF RECOMMENDATION: That the Board of Directors approve refunding up to four years of excess sewer service charges to 100 affected customers at a maximum expense of $17,353. COMMITTEE RECOMMENDATION: This matter was discussed with the Finance-Accounting Committee at their meeting on July 11, 2011, when the District staff discovered the redundant fees during the diligence and final accounting procedures for the sewer system transfer. DISCUSSION: It came to District staff's attention through the preparation and accounting related to the acceptance of the City of Yorba Linda sewer system, that a small number of the customers of the District and of the City were being charged by both agencies for sewer maintenance fees. Effective July 1, 2011, the date of the City sewer system transfer to YLWD, these customers are now all paying a uniform sewer maintenance service charge on their monthly water bills. In late September, the City of Yorba Linda remitted to the District all funds relating to the sewers that remained from the prior year. The District agreed to utilize a portion of these funds to reconcile any accounts that the City of Yorba Linda assessed the duplicate sewer maintenance charge to. Staff has calculated the total refund expenses for the 100 effected customers resulting in $17,353. Conferring with District legal counsel, staff will place a release statement as a condition of acceptance, on the back of the refund checks the affected customers receive. The District will also attach an explanation of the refund to the affected customers. PRIOR RELEVANT BOARD ACTION(S): On April 27, 2011, the Board of Directors executed the Public Sewer System Transfer Agreement with the City of Yorba Linda. Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 RC/RK 5-0 ITEM NO. 10.5 AGENDA REPORT Meeting Date: December 8, 2011 Budgeted: Yes Total Budget: $317,979 To: Board of Directors Cost Estimate: $317,979 Funding Source: Operating Funds From: Ken Vecchiarelli, General Account No: 1-2010-0550-00 Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Reviewed by Legal: N/A Prepared By: Joann Gitmed, Accounting CEQA Compliance: N/A Assistant II Subject: OPEB Liability Pay Down SUMMARY: The District budgeted $217,979 for the FY 2011/12 Annual Required Contribution (ARC) for Other Post Employment Benefits (OPEB) expenditures. The Board also approved a financial reserves policy in June 2011, designating $100,000 to be set aside for an Employee Liability Reserve. In January 2011, the Board authorized staff to pre-fund OPEB costs through the California Employees' Retirement Benefit Trust (CERBT), managed by CalPERS. Funding beyond the ARC at any time reduces the District's Net OPEB Liability (of approximately $122,000 as of June 30, 2011) and reduces the long-term costs of paying the District's Unfunded Actuarial Accrued Liability (of approximately $1,267,000 as of June 30, 2011). A reduction of the current liability will effectively result in a 7.6% interest earning in a one-year period of time, as the unfunded liability is assessed an annual interest charge of 7.6% per year by the current actuarial assumptions. STAFF RECOMMENDATION: That the Board of Directors authorize staff to deposit $263,810 ($317,979 less actual retiree costs through November 2011) to the California Employees' Retirement Benefit Trust (CERBT) for Fiscal Year 2011/12. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this matter at its meeting held November 28, 2011, and supports staff's recommendation. DISCUSSION: The District's budgeted Annual Required Contribution (ARC) for Other Post-Employment Benefits (OPEB) for 2011/12 is $217,979. Prior to fiscal year 2010/11, the District had paid retiree benefits on a pay-as-you-go basis, which has resulted in an underfunding of it's annual OPEB costs. In June 2011, with the adoption of the current Reserve Policy, the District established the Employee Liability Reserve, calling for $100,000 to be set aside annually to pay down our OPEB liability. The District's current Net OPEB Liability is approximately $122,000 as of FY 2010/11. This amount will be assessed a 7.6% actuarially assumed interest charge annually, but by paying down the OPEB Liability, the District will effectively save $7,600 on the following years' interest charge. In addition, during the fiscal year ending June 30, 2011, the CERBT earned its investing agencies a 24% yield. At the same time, the District's average yield hovered slightly above 1 Funding the CERBT with Employee Liability Reserve money makes prudent financial sense and complies with the purpose that the reserve was established. On June 23, 2011, the Board authorized staff to deposit the difference between our budgeted OPEB expense plus the $100,000 from the Employee Liability Reserve less actual retiree costs paid by the District. This year, staff propose that we pre-fund the CERBT with the same expenses submitted last year as well as actual retiree costs that will be paid by the District throughout future months in this fiscal year. By pre-funding the CERBT, the District can submit for reimbursement for actual retiree costs for the periods of December 2011 through June 2012, but take advantage of the CERBT's superior investment rate of return in the meantime. Staff is planning to submit those reimbursement requests at the end of FY 2011/12. PRIOR RELEVANT BOARD ACTION(S): On January 26, 2011, the Board authorized the President to execute a CERBT Program Agreement and Election of YLWD to Pre-fund Other Post Employment Benefits through CalPERS. On June 23, 2011, the Board authorized staff to deposit $162,817.77 to the California Employees Retirement Benefit Trust for Fiscal Year 2010/11, to pay down a portion of the District's Other Post Employment Benefits liability. On June 23, 2011, the Board approved Resolution No. 11-09 adopting the current budget that included $217,979 set aside for OPEB expenditures and the Board approved Resolution No. 11-12 adopting a financial reserves policy that included an annual funding of $100,000 for an Employees Liability Reserve. Approved by the Board of Directors of the Yorba Linda Water District 12/8/2011 RK/RC 5-0 ITEM NO. 11.3 AGENDA REPORT Meeting Date: December 8, 2011 Subject: General Manager's Report Tour of Administration Building ACWA/JPIA Low Loss Ratio Award ATTACHMENTS: Name: Description: Type: WVWD_Correspondence. pdf Correspondence Backup Material ACWAJPIA Correspondence. pdf Correspondence Backup Material VT Vq~ WALNUT VALLEY WATER DISTRICT Q,.,ty S'-1q6' BOARD OF DIRECTORS 271 South Brea Canyon Road 'L 4 Walnut, California 91789-3002 • (969) 595-1268 ~ (626) 964-6551 h Scarlett P. Kwong Welosite: www.wvwd.com Fax: (909) 594-9532 R LD15 President Election Division V Allen L. Wu RECEIVED First Vice President Election Division I November 23, 2011 y Edwin M. Hilden DEC ` 1 2011 Second Vice President Election Division ll YORBA LINDA WATER D)STRICT Barbara A. Carrera Assistant Treasurer Mr. Ken Vecchiarelli Eiectlon Division I] I General Manager Theodore L. Ebenkamp Yorba Linda Water District Director 1717 E. Miraloma Avenue Election Division IV Placentia, California 92870 STAFF Michael K. Holmes Dear Mr. Ve iarelli:- General Manager Secretary Thank you for arranging for a group from our District to tour your beautiful facility. Erik Hitchman Your agency was well represented by Mr. Steven Conklin, Engineering Manager, and Assistant General Manager Mr. Hank Samaripa, Project Engineer. They provided a complete and comprehensive chief Engineer tour that will be very helpful as we develop the plans for updating our facility. Brian Teuber Director of Finance We were impressed with the architecture of your buildings and grounds and sincerely Treasurer appreciate your providing our group the opportunity to see how Yorba Linda Sandra Olson addressed the needs of both its staff and customers. Director of Administrative Services Please extend our personal thanks to Mr. Conklin and Mr. Samaripa for so graciously LEGAL COUNSEL hosting our group. H. Jess Senecal Very truly yours, WALNUT VALLEY WATER DISTRICT MICHAEL HDLMES General Manager MH:ja RECEIVED DEC ° 1 2011 AC WA J P I.A November 28, 2011 YORBA LINDA WATER DISTRICT Kenneth Vecchiarelli JOINT POWERS Yorba Linda Water District INSURANCE AUTHORITY Box 309 Yorba Linda, CA 92885-0309 R O. Box 619082 dear Kenneth: Roseville, CA 95661-9082 Another year has passed and we are extremely happy with the great phone work that has been done by our districts and staff in reducing claims. 916.786.5742 800.231.5742 Congratulations to you and your district for receiving a Low Loss Ratio direct line award. We encourage you to keep up the good work. 916.774,7050 800.535.7899 The JPIA wishes you the best in 2012. fax 916.774.7040 Sincerely, www.acwajpia.com r President E.G. "Jerry" Gladbach Walter A. Sells Vice President Chief Executive Officer Tom Cuquet Chief Executive Officer Enclosure: Low Loss Ratio Certificate(s) Walter "Andy" Sells Executive Committee Tom Cuquet Joseph Dion E.G. "Jerry" Gladbach David T. Hodgin W.D. "Bill" Knutson Melody A. McDonald Charles W. Muse Randy A. Record Lou Reinkens A Partnership 01,pablic i4'ater A encies a~ s ti A. dq`, a! a a ` 1# rv~e: iv <Y Jtis4 .rzE stl"TM' Shc, $,i;, a39#, „i$,,., y4r' >B'1 •~5~?83k,,illld , Bf. { _ alll BkY . p9dY'r Bi4e':: B4 ;IBS plr - 111$ Ip P, ;:M,. F ~'IYl. 481 0,86' WIDI.i all/W{11r _1~N9L 24-20, T-N-SR, - "{S'a _ _ tom" A I yew, eg.: c II o,a ti,. President's Special Recognition Award C j 1 1 ` f \ ( Nor. The President of the r ACWA t Powers Insurance Auth©r v join ~r~~l N fir. herebygives Specr`al Deco ition to y 7j ~Mr ~..ky I filllC ~.*°~as"`='~3'@. I { Yo- ba Lin da Wa tel D- is trxCIt , for achieving a low ratio of "Paid Claims and Case Reserves " to "Deposit Premiums " i' in the Workers' Compensation Program for the period 07101107- 06130110 - announced at the Board ofDirectors'Meetingin Anaheim. .u a€ i s s e z~ s M I 1 ~ ~'y II ~a i E. C. `jetty" Gladbach, President Novemher28, 2011 i • YXX - .p ~.~iR~:t}a}.~-N. ,¢+.6.11. i2,..25'~.rSX~-X° .Sl~•3.'2ia.~Za.~,fh: ~,ca:6..2':~5.. "}ch 'X~~x.se t}ds'l`X~Lna'~'~Z, 2LcLa~s1's°~`~X~'~SY.X~s.p,,.-. . ~ - { p .-1 1 1 1 1 I 1 .~..a::: ! 1 1 W ~ d W K~. _..r,5.3 :3 ` r' 6 r,_. /s ir.,. ~1' - 1W s 1 1 1 1 1 r I 1 # 1 s.: 4 1 s ~,4BO 1W lp :c as ~p Ys. a 11 #1i ° '^:..a,¢, ~1 YI+s.4 11 le .z,,~a~r#,rs IP.BB P° •,.c.. d f 7§O P i w 1 ti r. .aV 1° ra IB 11 r r# S5 /1 B,, , ae a , .a 1 WI ~eB `ys;~ a¢ 1 W 1 i 1 # i s 111 s...YI Ig W # # WI° as ; r, Olin ,3 .a;,,• . i110~ a sr; iii,!1.~?a„ ,rt illy e° .spa ..a,. m41a5a; Ol. za ps kd Ild P t . t`.. c„ 416 v a,,. w~ l.:.F Z a®♦ a „ s a d , F 6s a, . e5, s3;x !41-" 2•: aA. + B 4 ,.wx: $A:4, ♦6 J.,, @.A.'s ,0 .#0. 3A „ . z :a£„o-- ,n•. :.s1:9r.., s, ,y., v,ti~~ :..~,i, .,r 'i ,i~31w 1t e' ,¢I,~ -'~.+a •;,y ``a.,. ;cgs„ A"P'l Mr F!A';, kr +i, rr ,4• i eat i 3 ~'C ~ i; ,-~Ir . r '`r" . ""x,7. s ~ . i. :Yh ,IPI r M rl la/ll 1:~„ ~ r + ill if ,t•`~' s~. io+1>tr'"l'i'ly <'rr'<wie Is t~ S,Er14r11 : r, i'ae?r"if pit k)tiJ °w"4v iPIhIP°,n,i,~dz `+1 h F;. fOJelh 4 '~.W,r/1,vh „ i .i,Fo 11 a I+,If11.IN> 1 S!r xa vl D ;fro f ~d', na hl 9 ':I. .,:,Illli Ir PI•' {`1*- ~.X• , -pt. :-o.• .r.-:a,.%^ 1 -.1,1: 4,~-e<.%• :<1;4/, Pp~.\ 1°IG~'+ q / lal x 1 ~Y'~i.. 1.-... I.e . ~f'. •P {I till f!!llil n'~.~ - v.~. .1. i-:5 ..:y• - ,:a f V`Y', + ra.3e`., .:5'}V$d:.. V 1V§>.. r(r V~e?a a.,~v1,~~: f'. X•V+1 n?.~ .ftiY,'Vfi+. vg`s - :,.F.V + 'S 'Y:-.. 4.. .!r. Fe, r. S, Lr + 1 r.. 5. V: a'• .5 f:. i~e .,'4 .zl - .•'r F+•(°,~. a j G. u-~~ s~ G q.. `l:- '.:,yam ''a.+~ 1+... ~ ~C.~ 4=.+ ::}P , ti~y14 . i ..;~t Cdr {a ~ ~~,a^ r r 'n`a 5: a ? a x a" 2 r t: £71998 GOES 3962 LITHO. IN U-S A, All R,ghrt 17..-d ITEM NO. 12.1 AGENDA REPORT Meeting Date: December 8, 2011 Subject: Executive-Administrative-Organizational Committee (Beverage/Hawkins) Minutes of meeting held November 30, 2011 at 4:30 p.m. Meeting scheduled December 20, 2011 at 4:00 p.m. ATTACHMENTS: Name: Description: Type: 113011 EAO - Minutes.doc EAO Mtg Minutes 11/30/11 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT EXEC-ADMIN-ORGANIZATIONAL COMMITTEE MEETING November 30, 2011 A meeting of the Executive-Administrative-Organizational Committee was called to order by Director Beverage at 4:30 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE STAFF Director Michael J. Beverage, Chair Ken Vecchiarelli, General Manager Director Phil Hawkins Damon Micalizzi, Public Information Officer OTHER ATTENDEES Christopher Townsend, Townsend Public Affairs (Via Conference Call) 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. Resolution Requesting a Seat on the Orange County Sanitation District Board Christopher Townsend joined the meeting via conference call at this time. The Committee reviewed the draft resolution prepared by legal counsel and agreed to forward it to the Board of Directors for action at the December 8, 2011 meeting. Accompaniments for the resolution and timing of submission to the Sanitation District will be considered by the Executive Committee, legal counsel, and TPA at future meetings. The Committee recommended that the Board of Directors adopt a resolution requesting a seat on the Orange County Sanitation District Board of Directors. Mr. Townsend ended his call at this time. 2.2. Reorganization of the Board of Directors for Calendar Year 2012 The Committee discussed the reorganization of the Board of Directors that is scheduled for the upcoming December 8, 2011 meeting. The Committee recommended that the Board of Directors nominate and elect a President and Vice President and appoint staff to serve as the Secretary, Assistant Secretary, and Auditor. 1 2.3. Board of Directors Compensation The Committee briefly discussed Board Compensation rates. The Committee recommended that the Board maintain the current level of compensation for attendance at Board and Committee meetings at $150 per day, limited to 10 days per month, pursuant to Water Code Section 20202. 3. DISCUSSION ITEMS 3.1. Status of Strategic Plan Initiatives This item was deleted from the agenda. 3.2. Future Agenda Items and Staff Tasks None. 4. ADJOURNMENT 4.1. The Committee adjourned at 5:02 p.m. The next meeting of the Executive-Administrative-Organizational Committee will be held December 20, 2011 at 4:00 p.m. 2 ITEM NO. 12.2 AGENDA REPORT Meeting Date: December 8, 2011 Subject: Finance-Accounting Committee (Collett/Kiley) Minutes of meeting held November 28, 2011 at 4:00 p.m. Meeting scheduled December 27, 2011 at 4:00 p.m. ATTACHMENTS: Name: Description: Type: 112811 FA - Minutes.doc FA Mtg Minutes 11/28/11 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING November 28, 2011 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 STAFF Director Ric Collett, Chair Ken Vecchiarelli, General Manager Director Robert R. Kiley Stephen Parker, Finance Manager 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. Financial Statements for Quarter Ending September 30, 2011 Mr. Parker presented the first full-accrual quarterly financial statements prepared for the Board's review. The format was changed to include a balance sheet and look similar to the audited financial statements. The Committee recommended additional revisions to include budgeted information and comparisons on the income statement, and to include a comparative column on the balance sheet. 2.2. OPEB Liability Pay Down Mr. Parker explained that this action item of depositing money with the California Employees' Retirement Benefit Trust (CERBT) was the same as the District did in the prior fiscal year, but with one difference related to the timing of the deposit. The Resolution the Board authorized in January 2011 allowed the District to pre-fund the CERBT with the entire budgeted amount, and then draw down the actual retiree costs from the fund. This recommendation is to do that for the current fiscal year - fund the entire budgeted amount, and draw down for reimbursement future expenses paid by the District. This will allow the District to utilize a preferable interest rate on the money held with the CERBT during the year. The Committee supported staff's recommendation and requested staff place the matter on the action calendar at the next Board meeting. 2.3. Purchasing Card Recommendation Mr. Parker spoke about staff's research of 10 potential vendors to come up with the recommendation for a purchase card program. He explained some of the benefits that separated staff's recommendation - the CAL- Card program through US Bank - from others. The Committee spoke about some of the benefits of using a purchasing card program. Mr. Parker identified that the District could easily add additional cards to the 1 current plan in the future, but identified that the CAL-Card program allowed the majority of purchases to still be approved by the Board before the vendors were paid by credit card. Mr. Parker identified that once the program was up and running, he anticipated the District would receive in excess of $9,000 annually by implementing this program. He also explained that there were no fees to the program under any circumstances. Lastly, he clarified that the contract the District would sign would not be through US Bank directly, but would add the District to many other vendors already added to a contract between the State of California and US Bank. The benefit to this would be that the District could opt out at any time with no penalty. Mr. Parker added that legal counsel had just been submitted the contract information, and the recommendation on to the entire Board would be pending that legal review. The Committee supported staff's recommendation and requested the item be placed as an action item on the next Board meeting available after legal counsel's review. 2.4. Adopting a Public Investment Policy Mr. Parker presented the Committee with a revised investment policy. He explained that the two largest changes made to this version were removing a dollar limit to investments in LAIF, CalTRUST and the Orange County Treasurer's Commingled Investment Pool as well as adding an investment item the District had previously invested in - Negotiable Certificates of Deposit. In addition, some small clean up language was made in the Obligations Issued by Federal Agencies paragraph. Mr. Parker explained that the changes made all abided by the California Government Code. The Committee asked who would review the District's policy to ensure it is appropriate. Mr. Vecchiarelli explained that the auditors annually review the District's investment policy to ensure it is in compliance with the California Government Code as well as ensuring the District is in compliance with their own investment policy. In the FY 2010/11 audit, their review determined that the District was not in compliance with one of its policies that was more restrictive than the California Government Code, and presented the District with a recommendation for making a correction - either to the policy or to the practice of having investments over $10 million in CalTRUST. The Committee requested that future investment policies be presented with tracked changes to make reviewing the differences easier. Staff agreed to that practice and indicated this would be done in the future. The Committee supported staff's recommendation pending a review by legal counsel. 3. DISCUSSION ITEMS 3.1. September 2011 Debt Service Ratio Mr. Parker shared with the Committee the September 2011 debt service ratio. This figure was delayed pending the completion of the full-accrual unaudited financial statements. The 246% provided was well above the 2 110% floor. Mr. Parker pointed out that as a result of approximately 33% of the District's water sales occurring in the first 25% of the year, September would always have an inflated debt service coverage ratio. The Committee discussed potentially offering a level-pay type plan to even out the revenues over the course of the year. Mr. Vecchiarelli said that was something that could be looked into, but it was pointed out that in the District's current circumstances, we receive more revenue early in the fiscal year when our water purchase expenses are typically higher, while a level-pay program would reduce that revenue early on. 3.2. Investment Report for Period Ending October 31, 2011 Mr. Parker shared the information from the monthly investment report. He explained that the reduction in CaITRUST's portfolio yield was the main driver for the decrease in overall yield from 1.08% to 0.99%. Mr. Parker also identified some reserve balance changes and noted that overall reserves had increased by $473,000. 3.3. October 2011 Budget to Actual Results Mr. Parker presented the October budget to actual results to the Committee. He shared that there were not too many changes from the previous month's results. Water revenue was trending below budget, variable water costs were higher than operating revenues as a result of purchasing more import water prior to a January 1, 2012 increase, other operating revenues were higher than budgeted due to the unbudgeted Vista Del Verde project coming through, and supplies and services expenses were all trending below or on budget, with the same exceptions as in the previous month. The Committee asked a question about a negative expense in the Water Fund's Data Processing expense line item, and when Mr. Parker could not speak to it, requested that he provide that information to them at a later point. Staff determined afterwards that the negative expense was attributed to a rebate on a copier lease. 3.4. Status of Strategic Plan Initiatives Mr. Parker went through the strategic plan items listed under the Fiscal Responsibility area. There was some discussion pertaining to the January workshop, as a number of the strategic plan items would be addressed in that workshop. The Committee requested that a comparison be made of the District to other of Orange County entities as it relates to fixed costs and rate structure in the January workshop. The Committee pointed out that the Multi-Year Financial Plan item should be moved to the current tasks. 3.5. Future Agenda Items and Staff Tasks • The Committee requested that future investment policies be presented with tracked changes to make reviewing the differences easier. 3 • The Committee requested that Mr. Parker explain a negative expense in the Water Fund's Data Processing expense line item, the explanation of which was forwarded later that evening by e- mail. • The Committee requested that a comparison be made of the District to other of Orange County entities as it relates to fixed costs and rate structures in the January workshop. 4. ADJOURNMENT 4.1. The Committee adjourned at 5:16 p.m. The next regular meeting of the Finance-Accounting Committee is scheduled for December 27, 2011 at 4:00 p.m. 4 ITEM NO. 12.5 AGENDA REPORT Meeting Date: December 8, 2011 Subject: Public Affairs-Communications-Technology Committee (Hawkins/Melton) Minutes of meeting held November 18, 2011 at 10:00 a.m. Minutes of meeting held December 7, 2011 at 4:00 p.m. (To be provided at the next Board meeting.) • Meeting scheduled January 3, 2012 at 4:00 p.m. ATTACHMENTS: Name: Desc6piion: - yiae: 111811 PACT - Minutes.docx PACT Mtg Minutes 11/18/11 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC AFFAIRS-COMMUNICATIONS-TECHNOLOGY COMMITTEE MEETING November 18, 2011 A meeting of the Public Affairs-Communications-Technology Committee was called to order by Director Hawkins at 10:00 a.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE STAFF Director Phil Hawkins, Chair Art Vega, Interim IT Manager Director Gary T. Melton Damon Micalizzi, PI Officer John DeCriscio, Chief Plant Operator 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS 2.1. Computerized Maintenance and Management System Project Status Mr. Vega informed the committee that an additional field operator for hydrants is now live on the CMMS for a total of 3 field operators and 1 Ieadworker utilizing the system. Staff is in the process of acquiring 2 additional notebook computers. Mr. Hawkins inquired if staff is ok with the progress being made with the CMMS project. Mr. DeCriscio responded, "We understand it is a slow process, but this allows for the end users to have more input and involvement in the end product." Mr. Vega discussed with the committee the projected costs and schedule forecast for the project. Mr. Vega informed the committee that he would be presenting hydrant reports at the next scheduled meeting. Mr. DeCriscio left the meeting following this discussion. 2.2. Holiday Newsletter (Verbal Report) Mr. Micalizzi presented to the Committee content for the Holiday Newsletter. The Committee discussed the letter from the General Manager and after making edits approved all of the content for the Newsletter that is scheduled to go to print on December 9, 2011. 2.3. New District Signs (Verbal Report) Mr. Micalizzi updated the Committee on the status of the new District signs that are replacing the Conservation signs throughout the District. 2.4. Public Outreach Activities The Committee reviewed the District's participation in various public events over the calendar year. 1 2.5. Status Report on Committee Specific Strategic Plan Initiatives The Committee reviewed the Strategic Plan Status Report and requested that future reports only include information on items that have changed since the previous month's report. 2.6. Future Agenda Items and Staff Tasks None. 3. ADJOURNMENT 3.1. The meeting was adjourned at 11:15 p.m. The next meeting of the Public Affairs-Communications-Technology Committee is scheduled for December 7, 2011 at 4:00 p.m. 2 ITEM NO. 12.6 AGENDA REPORT Meeting Date: December 8, 2011 Subject: YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Hawkins) Minutes of meeting held November 22, 2011 at 4:00 p.m. Meeting scheduled January 24, 2012 at 4:00 p.m. ATTACHMENTS: Name: Description: Type: 112211 MWDOC OCWD Minutes.docx YLWD/MWDOC/OCWD Joint Agency Mtg Minutes Minutes 11 /22/11 MINUTES OF THE YORBA LINDA WATER DISTRICT JOINT COMMITTEE MEETING WITH MWDOC AND OCWD November 22, 2011 A meeting of the YLWD/MWDOC/OCWD Joint Agency Committee was called to order at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia CA 92870. YLWD COMMITTEE MEMBERS YLWD STAFF Director Michael J. Beverage, Chair Steve Conklin, Engineering Manager Director Phil Hawkins MWDOC COMMITTEE MEMBERS MWDOC STAFF Director Brett Barbre Kevin Hunt, General Manager OCWD COMMITTEE MEMBERS OCWD STAFF Director Roger Yoh Mike Markus, General Manager 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS 2.1. Metropolitan Issues Director Barbre confirmed earlier reports that the MWD water situation is very good. He noted that the MWD Board has approved a five-year labor agreement with MWD staff. In the committee discussion, there was a comment that there might be too much emphasis on the tunnel under the delta as the panacea for moving water through to the south. Alternatives to the tunnel were another terminal storage reservoir in southern California similar in size to Diamond Valley, or a greater pursuit of and investment in desalination. 2.2. MWDOC Survey Results Mr. Hunt presented findings of the survey of 500 OC residents in the MWDOC service area regarding key water issues. Key findings included: • Water was viewed as the second-best utility value, behind natural gas. • 77% of respondents said that local water providers do a somewhat or very effective job of keeping them informed of water issues. • 93% describe the current water supply status as somewhat or very reliable. • Respondents were asked to name two most effective ways to solve our water shortage. Those listed most often were: Be more efficient with water (53%); utilize ocean desalination (39%); and utilize recycled water (30%). 1 The entire survey results are available from MWDOC on PowerPoint. 2.3. Outreach Issues Mr. Hunt reported that there is a general concern that we are losing support from the public on water issues, and that MWD is not as involved as it used to be. In response, he indicated that MWDOC is proposing meetings with local agencies to pursue means of increasing support. It was noted that a chief complaint of customers is that they responded to the call for conservation, and the payback was an increase in water rates, with inadequate explanation and justification. The findings of the survey noted above in Item 2.2 will be used in developing the outreach program. 2.4. Annexation of YLWD to OCWD Mr. Markus reported that work is proceeding on the EIR, with a draft report expected in March 2012 and a final report three months later. He also commented that when the issue of annexation is brought to the OCWD Board for approval, there may be a separate vote for each of the three agencies in the annexation request. 2.5. Proposed YLWD Well Site on OCWD Property Mr. Conklin reported that OCWD staff identified a location for the proposed well site near La Palma Avenue, from three alternatives presented by YLWD. He provided handouts showing the location, and indicated that additional drawings are being prepared for submittal to OCWD staff. Mr. Markus indicated that his staff can take the well site submittal to a closed-session of the OCWD Board on December 7 or 21 (because it is a property negotiation matter). 2.6. Future Agenda Items and Staff Tasks None. 3. ADJOURNMENT 3.1. The Committee adjourned at 5:10 p.m. The next meeting of the YLWD- MWDOC-OCWD Joint Agency Committee will be held January 24, 2012 at 4:00 p.m. 2 ITEM NO. 14.1 AGENDA REPORT Meeting Date: December 8, 2011 Subject: Meetings from December 9, 2011 - January 31, 2012 ATTACHMENTS: Name: Dosciiption: a ype: BOD - Activities Calendar.pdf Calendar Backup Material Board of Directors Activity Calendar Event Date Time Attendance by: December 2011 WACO Fri, Dec 9 7:30AM Hawkins Board of Directors Workshop Meeting Mon, Dec 12 8:30AM Planning-Engineering-Operations Committee Meeting Tue, Dec 13 11:00AM Melton/Collett Personnel-Risk Management Committee Meeting Tue, Dec 13 4:00PM Kiley/Beverage CRWUA Annual Conference Wed, Dec 14 8:OOAM Beverage/Melton Yorba Linda Planning Commission Wed, Dec 14 7:00PM Kiley CRWUA Annual Conference Thu, Dec 15 8:00AM Beverage/Melton CRWUA Annual Conference Fri, Dec 16 8:00AM Beverage/Melton Exec-Admin-Organizational Committee Meeting Tue, Dec 20 4:00PM Beverage/Hawkins Yorba Linda City Council Tue, Dec 20 6:30PM Melton MWDOC Board Wed, Dec 21 8:30AM Melton/Staff OCWD Board Wed, Dec 21 5:30PM Kiley/Staff Board of Directors Regular Meeting Thu, Dec 22 8:30AM Holiday Fri, Dec 23 7:30AM District Offices Closed Holiday Mon, Dec 26 7:30AM District Offices Closed Finance-Accounting Committee Meeting Tue, Dec 27 4:00PM Collett/Kiley Yorba Linda Planning Commission Wed, Dec 28 7:00PM Collett January 2012 Holiday Mon, Jan 2 7:30AM District Offices Closed Pub Affairs-Communications-Tech Committee Meeting Tue, Jan 3 4:OOPM Hawkins/Melton Yorba Linda City Council Tue, Jan 3 6:30PM Hawkins MWDOC/MWD Workshop Wed, Jan 4 8:30AM Melton/Staff OCWD Board Wed, Jan 4 5:30PM Kiley/Staff Planning-Engineering-Operations Committee Meeting Thu, Jan 5 4:00PM Melton/Collett WACO Fri, Jan 6 7:30AM Hawkins Personnel-Risk Management Committee Meeting Tue, Jan 10 4:00PM Kiley/Beverage Yorba Linda Planning Commission Wed, Jan 11 7:00PM Kiley Board of Directors Regular Meeting Thu, Jan 12 8:30AM Board of Directors Workshop Meeting Mon, Jan 16 8:30AM Exec-Admin-Organizational Committee Meeting Tue, Jan 17 4:00PM Beverage/Hawkins Yorba Linda City Council Tue, Jan 17 6:30PM Melton MWDOC Board Wed, Jan 18 8:30AM Melton/Staff OCWD Board Wed, Jan 18 5:30PM Kiley/Staff Citizens Advisory Committee Meeting Mon, Jan 23 8:30AM Beverage Finance-Accounting Committee Meeting Mon, Jan 23 4:00PM Collett/Kiley Joint Committee Meeting with MWDOC and OCWD Tue, Jan 24 4:OOPM Beverage/Hawkins Yorba Linda Planning Commission Wed, Jan 25 7:00PM Collett Board of Directors Regular Meeting Thu, Jan 26 8:30AM 12/2/2011 12:43:47 PM