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HomeMy WebLinkAbout2012-05-10 - Board of Directors Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 10, 2012, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Phil Hawkins, President Gary T. Melton, Vice President Michael J. Beverage Ric Collett Robert R. Kiley 4. ADDITIONS/DELETIONS TO THE AGENDA 5. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 6. SPECIAL RECOGNITION 6.1. Recognize Doug Baker, Mechanic II, and Dave Barmer, Senior Maintenance Distribution Operator, for Completion of OSHA Trainer Course in Forklift Safety 6.2. Recognize Staff for Receipt of Distinguished Budget Presentation Award for FY 2011/12 from the Government Finance Officers Association 7. COMMITTEE REPORTS 7.1. Citizens Advisory Committee (Beverage) Minutes of meeting held April 23, 2012 at 8:30 a.m. Meeting scheduled May 29, 2012 at 8:30 a.m. 8. 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. 8.1. Minutes of the Board of Directors Regular Meeting Held April 26, 2012 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$507,715.53. 8.3. Investment Report for the Period Ending March 2012 Recommendation: That the Board of Directors receive and file the Investment Report for the Period Ending March 2012. 9. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 9.1. Establishing a Line of Credit Recommendation: That the Board of Directors approve working with Kurt Yeager of Stradling Yocca Carlson & Rauth to pursue the next steps toward establishing a line of credit with Wells Fargo. 9.2. Award of Construction Contract for Pressure Regulating Stations Upgrade Project, Phase 1 Recommendation: That the Board of Directors award the contract to Vido Samarzich, Inc. in the amount of$597,020 for construction of the Pressure Regulating Stations Upgrade Project, Phase 1. 9.3. Potential Northeast Developments and Proposed District Planning Study Recommendation: That the Board of Directors authorize staff to proceed with final preparation of an RFP and solicit proposals for the Northeast Area Water Service Planning Study. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report 10.2. Directors' Report 10.3. General Manager's Report • Orange County Grand Jury Report - "Let There Be Light" Dragging Special Districts from the Shadows 10.4. General Counsel's Report 10.5. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS CONTINUED 11.1. Executive-Administrative-Organizational Committee (Hawkins/Melton) • Minutes of meeting held May 9, 2012 at 4:00 p.m. (To be provided at the next regular Board meeting.) • Meeting scheduled June 18, 2012 at 4:00 P.M. 11.2. Finance-Accounting Committee (Kiley/Hawkins) Minutes of meeting held April 23, 2012 at 4:00 p.m. Meeting scheduled May 23, 2012 at 4:00 p.m. 11.3. Planning-Engineering-Operations Committee (Collett/Kiley) • Minutes of meeting held May 3, 2012 at 4:00 p.m. (To be provided at the next regular Board meeting.) • Meeting scheduled June 7, 2012 at 4:00 p.m. 11.4. Personnel-Risk Management Committee (Beverage/Collett) • Minutes of meeting held May 8, 2012 at 4:00 p.m. (To be provided at the next regular Board meeting.) • Meeting scheduled June 12, 2012 at 4:00 p.m. 11.5. Public Affairs-Communications-Technology Committee (Melton/Beverage) • Meeting scheduled May 14, 2012 at 4:00 p.m. 11.6. YLWD-MWDOC-OCWD Joint Agency Committee (Hawkins/Beverage) • Meeting scheduled May 22, 2012 at 4:00 p.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. YL City Council - May 1 , 2012 (Hawkins) 12.2. MWDOC/MWD Workshop - May 2, 2012 (Melton/Staff) 12.3. OCWD Board - May 2, 2012 (Kiley/Staff) 12.4. WACO - May 4, 2012 (Kiley) 12.5. YL Planning Commission - May 9, 2012 (Kiley) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 11, 2012 - June 30, 2012 14. 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. 14.1. 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) 15. ADJOURNMENT 15.1. The next regular meeting of the Board of Directors will be held May 24, 2012 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. 7.1 AGENDA REPORT Meeting Date: May 10, 2012 Subject: Citizens Advisory Committee (Beverage) Minutes of meeting held April 23, 2012 at 8:30 a.m. Meeting scheduled May 29, 2012 at 8:30 a.m. ATTACHMENTS: Name: Description: Type: 042312 - CAC Minutes.docx CAC Mtg Minutes 04/23/12 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT CITIZENS ADVISORY COMMITTEE MEETING April 23, 2012 CALL TO ORDER A meeting of the Citizens Advisory Committee was called to order at 8:30 a.m. by Chair Daniel Mole. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE MEMBERS PRESENT Daniel Mole Joe Holdren Fred Hebein Lindon Baker Greg Meyers Modesto Llanos Gus Bruner Rick Buck YLWD DIRECTORS PRESENT YLWD STAFF PRESENT Michael J. Beverage, Director Ken Vecchiarelli, General Manager Steve Conklin, Engineering Manager Stephen Parker, Finance Manager Cindy Botts, Management Analyst Cody Peterson, Public Affairs Intern OTHER VISITORS Mark Schock 1. PUBLIC COMMENTS Committee members brought up the fact that the "Penny Signs" are continuing to be misunderstood by members of the community. A Committee member also questioned if the Edison explosion affected the Water District. Mr. Vecchiarelli explained that with the exception of 3 pumps whose gasoline backup generators took over upon loss of power, the District was not affected. A data sheet was also presented to the Committee by Mr. Shock which detailed District reservoir water levels during Red Flag Warning Periods. Director Beverage informed the Committee that the issue had been presented before the Board and it has been moved to the PEO Committee for review in the coming months. The Committee also discussed clarifying the difference between Water and Sewer services provided by the District. 2. DISCUSSION ITEMS 2.1. Capital Improvement Program for FYs 2012/13 thru 2016/17 Mr. Conklin presented the proposed Capital Improvement Plan (CIP) to the Committee highlighting a project priority system for current and future projects. Updates were provided at Committee request on the status of said projects. Two upcoming projects are designed to further utilize Orange County Water District (OCWD) groundwater over MWD import 1 water in the event of annexation, during MWD shutdowns, interruptions in MWD service and to allow more operational flexibility. An image of the tentative location of Well 21 was shown to the Committee as part of the explanation of the District wide Groundwater Delivery Project. The project allows for pumping of groundwater to the higher zones and will save the district approximately $1 million per year if YLWD is able to have its entire service area annexed to OCWD. There will also be new improvements at the Fairmont Reservoir to include: replacement of 2 old pumps with 6 new ones, replacement of valves in the reservoir, pipeline improvements, and a new, larger pump building. This project, along with many other facets of the Capital Improvement Plan, accounts for future housing developments. Total cost for the project's various components is approximately $8.3 million over 3 years. Committee members were informed that the Board had decided to go with staff recommendation to postpone those projects perceived not to be immediately necessary. Mr. Vecchiarelli clarified they represent repair and replacement of portions of the system that are being regularly maintained, but are older and are working on borrowed time. 2.2. Draft Budget for FY 2012/13 Mr. Parker explained the Budget's assumptions to the Committee which included the increased percentage of OCWD groundwater allowance and the MWD rate increases for the next three fiscal years. Budget expenses were laid out before the Committee. These expenses detailed those services considered to be (1) Required for Operational Service, (2) Necessary for Adherence to the District's Strategic Plan, and (3) Falling into Neither of the Other Categories. The presentation also covered: new budget revenue allotments, variable water cost comparison in rates between MWD and OCWD, and Vehicle Equipment and Capital Outlay. The District's Fitch AA+ rating was explained to the Committee. Reserve Policy changes were reviewed and included changes in Operating Reserves and Maintenance Reserves. Director Beverage fielded questions over why MWD rates have skyrocketed over the last 4 years and Committee members expressed concerns about those increased rates now and into the future. Various graphs detailing the outcome of District rate increases were presented and illustrated the Board's decision for a 1.5%, 2.5%, and 2.5% rate increase over the next 3 years. It was further explained that the Board was not mandated to enact the increases but would have the option available to them. The benefits of using a line of credit to even out the effects of the rate increases was detailed along with the recommendation to change from a fixed rate to a volumetric rate and its pros and cons. A comparative rate chart between other water districts was presented to show the efficiency of the District. The Committee asked several questions related to the District's justification for the rate increase. 2.3. OC Water Summit Attendance Committee members were informed that seats were available for those who wished to attend. The Summit is Friday, May 18, 2012 at the Grand California Hotel in Anaheim. 2 2.4. Rescheduling May 2012 Meeting Date The Committee decided to move the May meeting to Tuesday, May 29, 2012. 2.5. District Facilities Tour The Committee members were informed that the Board would be hosting a tour of District facilities on Thursday, May 31St, which will be open to those CAC members who wish to attend. 2.6. Future Agenda Items ■ District Public Affairs Efforts 3. ADJOURNMENT 3.1. The Committee adjourned at 10:30 a.m. The next regular meeting of the Citizens Advisory Committee will be held May 29, 2012 at 8:30 a.m. 3 ITEM NO. 8.1 AGENDA REPORT Meeting Date: May 10, 2012 Subject: Minutes of the Board of Directors Regular Meeting Held April 26, 2012 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Nang. Description: Type: 042612 BOD - Minutes.doc BOD Mtg Minutes 04/26/12 Minutes Approved by the Board of Directors of the Yorba Linda Water District 5/10/2012 RK/RC 5-0 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING April 26, 2012 1. CALL TO ORDER The April 26, 2012 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Hawkins at 6:31 p.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 Phil Hawkins, President Ken Vecchiarelli, General Manager Gary T. Melton, Vice President Steve Conklin, Engineering Manager Michael J. Beverage Lee Cory, Operations Manager Ric Collett Gina Knight, Human Resources Manager Robert R. Kiley Stephen Parker, Finance Manager Art Vega, Interim IT Manager Cindy Botts, Management Analyst Annie Alexander, Executive Secretary ALSO PRESENT Brett Barbre, Director, Municipal Water District of Orange County Art Kidman, Partner, Kidman Law LLP Eddy Beltran, Senior Counsel, Kidman Law LLP Modesto Llanos, Member, YLWD Citizens Advisory Committee 4. ADDITIONS/DELETIONS TO THE AGENDA None. 1% IV 5. PUBLIC COMMENTS Director Barbre addressed the Board and commented on a report soon to be released from the Orange County Grand Jury regarding special districts, the upcoming LAFCO election, and the current water supply situation. 6. CONSENT CALENDAR Director Beverage made a motion, seconded by Director Collett, to approve the Consent Calendar. Motion carried 5-0. Director Collett abstained from voting on Check No. 58947 on Item No. 6.4. as he has a financial interest with the vendor. 1 6.1. Minutes of the Board of Directors Workshop Meeting Held April 11, 2012 Recommendation. That the Board of Directors approve the minutes as presented. 6.2. Minutes of the Board of Directors Regular Meeting Held April 12, 2012 Recommendation. That the Board of Directors approve the minutes as presented. 6.3. Minutes of the Board of Directors Special Meeting Held April 19, 2012 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$1,145,183.87. IMM 6.5. Progress Payment No. 1 for Fairmont Reservoir Valve Replacement Project Recommendation. That the Board of Directors approve Progress Payment No. 1 in the net amount of $189,261.00 to Pascal & Ludwig Constructors for construction of Fairmont Reservoir Valve Replacement Project, Job No. 201011. 6 Progress Payment No. 6 for Well No. 20 Well Head Project Recommendation. That the Board of Directors approve Progress Payment No. 6 in the net amount of $109,244.25 to Pascal & Ludwig Constructors for construction of the Well No. 20 Well Head Equipping Project, Job No. 200711. 6.7. Progress Payment No. 15 for the Highland Booster Pump Station Project Recommendation. That the Board of Directors approve Progress Payment No. 15 in the net amount of $197,135.36 to Pacific Hydrotech Corporation for construction of the Highland Booster Pump Station Project, Job No. 200814. 6.8. Change Order No. 2 for Well No. 20 Wellhead Equipping Project Recommendation. That the Board of Directors approve Change Order No. 2 in the amount of $10,494.00 and 35 additional calendar days to Pascal and Ludwig Constructors for construction of the Well No. 20 Well Head Equipping Project, Job No. 200711. 2 7. ACTION CALENDAR 7.1. Change Order No. 4 for Fairmont Reservoir Valve Replacement Project Mr. Conklin explained that the coating of existing pipe spools and flanges was not included in the original plans for this project as prepared by the District. Staff obtained a quote for $9,060 from the contractor to perform this additional task and determined that the amount and an 11 day time extension was appropriate for the work required. Director Hawkins asked if this issue had been reviewed by the Planning-Engineering-Operations (PEO) Committee. Mr. Conklin explained that due to the urgency of this project, this matter had been brought straight to the Board for consideration. PR AMAL Director Collett made a motion, seconded by Director Kiley, to approve Change Order No. 4 in the amount of $9,060.00 and an 11 calendar-day time extension to Pascal & Ludwig Constructors, Inc. for the Fairmont Reservoir Valve Replacement Project, Job No. 2010-11. Motion carried 5-0. 7.2. Material Testing Services for Yorba Linda Blvd Pipeline & Booster Station Projects, 2010 Waterline Replacement Project and On-Call Geotechnical Services am Mr. Conklin explained that staff had issued a Request for Proposal for material testing services for three construction projects and future on-call services in order to enhance efficiency and cost savings. Mr. Conklin and Mr. Vecchiarelli responded to questions from the Board regarding the reasons why this matter had not been reviewed by the PEO Committee before being presented to the Board. Mr. Conklin explained that there was a delay in the review process and due to time constraints, this issue was brought directly to the Board for consideration. Director Beverage suggested that staff consider notifying Committee chairs ahead of time should this same kind of situation happen again in the future. Director Collett made a motion, seconded by Director Kiley, to authorize execution of a Professional Services Agreement with Hushmand Associates, Inc. for a fee not to exceed $130,000, to provide material testing services for the Yorba Linda Blvd Pipeline & Booster Station Projects, 2010 Waterline Replacement Project and On-Call Geotechnical Services. Motion carried 5-0. 7.3. Election of Regular and Alternate LAFCO Commissioners Mr. Vecchiarelli explained that the Orange County Special District Selection Committee would be holding an election for the special district representative seat on LAFCO. LAFCO has requested that the Board designate one Director and an alternate to cast the Districts ballot for this election. The Board may also choose to nominate a candidate for this seat. Director Hawkins stated that he may have a conflict of interest if he was designated to cast the District's vote as he currently serves as Chair of the Orange County Special District Selection Committee. Brief discussion regarding Directors Hawkins' concern followed. Director 3 Barbre addressed the Board and stated that he didn't think it would be a conflict of interest for Director Hawkins to serve in both capacities. Director Collett made a motion, seconded by Director Beverage, to designate Director Hawkins as the District's primary voting representative and Director Melton as the alternate voting representative in the Orange County Special District Selection Committee election. Motion carried 5-0. No Directors expressed an interest in making a nomination for a LAFCO candidate at this time. 7.4. ACWA Health Benefits Authority Transfer to ACWA/JPIA Mrs. Knight explained that to proceed with the transfer of ACWA HBA to ACWA/JPIA, the Board would need to adopt a resolution consenting to join the Employee Benefits Program of ACWA/JPIA and ratify the termination of ACWA HBA's Joint Powers Agreement. Failure to return an approved resolution by June 29, 2012 could result in loss of health insurance coverage for District employees. Director Beverage made a motion, seconded by Director Collett, to adopt Resolution No. 12-09, consenting to join the health benefits program of ACWA/JPIA and ratifying the dissolution of the ACWA Health Benefits Authority Joint Powers Agreement. Motion carried 5-0 on a roll call vote. am mum& Mr 7.5. Board Communications Reimbursement Policy Mr. Vecchiarelli explained that at the direction of the Executive- Administrative-Organizational Committee, staff had drafted a resolution and policy for the acquisition and reimbursement of communications devices for the Directors to receive digital copies of agenda packets and other documents. This would eliminate the need for staff to copy and deliver paper agenda packets resulting in increased savings for the District. The Board approved funds in the current budget to support this program and while participation would be voluntary, staff would discontinue the distribution of paper agenda packets beginning July 1, 2012. Mr. Vecchiarelli then responded to questions from the Board regarding the discontinuation of producing paper agenda packets and concerns related to the subpoenaing of information stored on electronic devices. Director Melton made a motion, seconded by Director Collett, to adopt and implement Resolution No. 12-10 Setting Board Communications Reimbursement Policy. Motion carried 3-2 with Directors Beverage and Collett voting No on a roll call vote. 4 7.6. Water Rate Study 2012 Mr. Parker explained that staff was requesting that the Board receive and file the water rate study. This document will provide additional information to District customers regarding the proposed water rate increase and change to the monthly meter charge. Director Collett made a motion, seconded by Director Beverage, to receive and file the Water Rate Study 2012. Motion passed 5-0. Brief discussion regarding comments provided by the Citizens Advisory Committee and the possibility of offering some residential customers the opportunity to downgrade to a smaller meter size followed. Mr. Vecchiarelli distributed a handout containing information on the number and type of customers with 1'/" and 2" meters. 7.7. Notice of Proposed Water Rate Increase and Schedule of Public Hearing Mr. Parker explained that staff was requesting that the Board authorize staff to mail a notice of the proposed water rate increase to District customers as well as schedule a public hearing in June to consider the matter. Director Barbre addressed the Board and suggested that legal counsel look into the possibility of providing this notice electronically to those customers who currently receive their billing statements in this manner. Brief discussion regarding Directors Barbre's suggestion followed and the Board requested that staff consider looking into this notification option for a future notice. Director Beverage made a motion, seconded by Director Collett, to authorize staff to mail a Notice of Proposed Water Rate Increase to the District's customers notifying them of proposed changes to their water rate for the upcoming three fiscal years and schedule a Public Hearing on June 21, 2012 at 6.30 p.m. Motion passed 5-0. 8. REPORTS, INFORMATION ITEMS, AND COMMENTS 8.1. President's Report None. 8.2. Directors' Reports None. 8.3. General Manager's Report ■ SAWPA Commission Meeting —April 17, 2012 Mr. Vecchiarelli reported that he attended this meeting along with a few other local water district representatives. At the meeting, Mr. Vecchiarelli submitted a letter to the SAWPA Chair requesting that the Commission consider revising Memorandums 8618 and 8622 to include all water rate structures endorsed by the California Urban Water Conservation Council which would enable the District to qualify for future OWOW funding. As a result, the OWOW Steering Committee will be discussing this request at a special meeting in 5 May after which the memorandums will be presented to the SAWPA Commission for consideration a second time. Staff plans to attend these two meetings and will report the results back to the Board. Mr. Vechiarelli further reported that he planned to attend a General Manager Leadership Summit being hosted by CSDA this July. The summit would provide him with 16 CEU credits which will be counted towards the District's participation in CSDA's District's of Distinction accreditation program. Mr. Vecchiarelli then confirmed that the Directors planned to attend the District facilities tour scheduled May 31, 2012. The Board suggested that staff invite elected officials from the City of Yorba Linda and City of Placentia to attend. 8.4. General Counsel's Report *1k Mr. Kidman reported that his office had just completed its first report on bills for the 2012 legislative session, a copy of which will be provided to staff shortly. Mr. Kidman then commented on the status of the 2009 water bond package and pension reform. Mr. Kidman then stated that he would not be able to attend the next Board of Directors meeting as he would be attending the ACWA conference in Monterey. 8.5. Future Agenda Items and Staff Tasks None. 9. COMMITTEE REPORTS 9.1. Executive-Administrative-Organizational Committee (Hawkins/Melton) Minutes of the meeting held April 16, 2012 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled May 9, 2012 at 4:00 p.m. 9.2. Finance-Accounting Committee (Kiley/Hawkins) Minutes of the meeting held April 23, 2012 at 4:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled May 23, 2012 at 4:00 p.m. 9.3. Personnel-Risk Management Committee (Beverage/Collett) Minutes of the meeting held April 10, 2012 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled May 8, 2012 at 4:00 p.m. 6 9.4. Planning-Engineering-Operations Committee (Collett/Kiley) Minutes of the meeting held April 9, 2012 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled May 3, 2012 at 4:00 p.m. 9.5. Public Affairs-Communications-Technology Committee (Melton/Beverage) Minutes of the meeting held April 9, 2012 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled May 7, 2012 at 4:00 p.m. 9.6. YLWD-MWDOC-OCWD Joint Agency Committee (Hawkins/Beverage) Minutes of the meeting held March 27, 2012 at 4:00 p.m. were provided in the agenda packet. N Next meeting is scheduled May 22, 2012 at 4:00 p.m. 9.7. Citizens Advisory Committee (Beverage) IBM Minutes of the meeting held April 23, 2012 at 8:30 a.m. will be provided at 4tthe next regular Board meeting. Next meeting is scheduled May 29, 2012 at 8:30 a.m. 10. INTERGOVERNMENTAL MEETINGS 10.1. WACO —April 13, 2012 (Hawkins/Kiley) Directors Kiley attended and commented on a presentation regarding the water supply conditions which was provided at the meeting. 10.2. YL City Council —April 17, 2012 (Melton) Director Melton attended commented on a ground lease with the Yorba Linda Friends Church which was discussed during the meeting. 10.3. MWDOC Board —April 18, 2012 (Melton/Staff) Director Melton attended but did not have any District related business to report. 10.4. OCWD Board —April 18, 2012 (Kiley/Staff) Director Kiley attended and reported that the Replenishment Assessment and Basin Production Percentage for FY 2012/13 had been approved at the meeting. 7 11. BOARD OF DIRECTORS ACTIVITY CALENDAR 11.1. Meetings from April 27, 2012 — May 31, 2012 The Board reviewed the listed meetings and made no changes. 12. CLOSED SESSION The meeting was adjourned to Closed Session at 9:25 p.m. All Directors were present. Also present were Messrs. Vecchiarelli, Kidman and Beltrans, and Mrs. Knight. 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) 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) IMMM Name of Case: Weiss vs. YLWD (OC Superior Court - Case No. 00319080) Nam as 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) 8 12.2. Conference with Legal Counsel —Anticipated Litigation Pursuant to Subdivision (b) of Section 54956.9 of the California Government Code Number of Potential Cases: One (Fair Political Practices Commission Letter Dated July 15, 2011) The Board reconvened in Open Session at 7:47 p.m. President Hawkins announced that no action was taken during either Closed Session that was required to be reported under the Brown Act. 13. ADJOURNMENT 13.1. The meeting was adjourned at 7:48 p.m. The next regular meeting of the Board of Directors will be held May 10, 2012 at 8:30 a.m. Kenneth R. Vecchiarelli Board Secretary 9 ITEM NO. 8.2 AGENDA REPORT Meeting Date: May 10, 2012 Budgeted: Yes To: Board of Directors Cost Estimate: $507,715.53 Funding Source: All Funds From: Ken Vecchiarelli, General Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Prepared By: Maria Trujillo, Accounting 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 $507,715.53. DISCUSSION: The wire on this disbursement list is as follows: A wire of $88,087.62 to ACWA-HBA for May 2012 health premium. The balance of $191 ,689.22 is routine invoices. The Accounts Payable check register total is $279,776.84; Payroll No. 9 total is $227,938.69; and, the disbursements of this agenda report are $507,715.53. A summary of the checks is attached. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. ATTACHMENTS: Name: Description: Type: CkReg51012 BOD.Pdf Check Register Backup Material 12-CS 510.doc Cap Sheet Backup Material 12 CC 510.xls Credit Card Summary Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/10/2012 RK/RC 5-0 Yorba Linda Water District Check Register For Checks Dated: 4/27/2012 thru 5/10/2012 Check No. Date Vendor Name Amount Description W42712 04/27/2012 ACWA-HBA 88,087.62 HEALTH PREMIUM MAY 2012 58972 05/10/2012 Anaheim Wheel&Tire 60.00 UNIT 182 MOUNT/BAL TIRES 58973 05/10/2012 Answer One Communications 710.45 ANSWERING SVC-APR/MAY12 58974 05/14/2012 Anthem Blue Cross EAP 168.63 EAP-MAY12 58975 05/10/2012 Aquatic Inspections, Inc. 2,650.00 RESERVOIR INSP SVCS 58976 05/10/2012 Aramark 593-15 UNIFORM 58985 05/10/2012 ARC 53.18 J0817 JOB SPECS 58977 05/10/2012 AT&T-Calnet2 3,056.21 COMMUNICATION 58978 05/10/2012 Bank Of America 1,035.00 YLWD VISA REWARDS 58979 05/10/2012 Battery Systems Inc 248.07 UNIT 154 MAINT FREE BATTERY 58987 05/10/2012 C.Wells Pipeline 137.39 DIAPHRAGM FOR HYRTOL 58980 05/10/2012 Cal Society-Municipal Finance Office 25-00 WEB/BETTER BUDGET PARKER 58981 05/10/2012 CalCard US Bank 2,886.39 YLWD CAL CARD VISA 58982 05/10/2012 CDW Government, Inc 4,717.26 VMWARE VSPHERE 58903 04/30/2012 City Of Anaheim (3,360.80) VOID- INCORRECT AMOUNT 58970 04/30/2012 City Of Anaheim 1,821.84 MARCH SVCS 58983 05/10/2012 City Of Placentia 433.70 ROW PERM 58984 05/10/2012 Community Lock&Safe Service, Inc. 6.43 DUPLICATE KEYS 58986 05/10/2012 Culligan of Santa Ana 59.85 WTR SOFTENER SVC 58988 05/10/2012 Draeger Safety Inc. 937.00 SENSOR 58989 05/10/2012 Eisel Enterprises, Inc. 580.07 METER BOXES 58990 05/10/2012 Elite Equipment Inc 226.28 AIR COMPRESSOR HOSE 58991 05/10/2012 Equarius Waterworks 10,816.26 1"METER 89001 58992 05/10/2012 e5ecurityToGo, LLC 1,26372 BARRACUDA ENERG UPDT 58993 05/10/2012 ESRI 11,576.63 ARC GIS ANNUAL MAINT 58994 05/10/2012 Federal Express 280-67 FED EX CHARGES 58995 05/10/2012 Fleet Services, Inc 1,735.04 MISC VEHICLE PARTS 58996 05/10/2012 Graybar Electric Co 1,385.10 CONVERTER 58997 05/10/2012 Harrington Industrial 76.31 PVC PARTS 58998 45/10/2012 Henry Pratt Company 2,256.29 MANUAL HAND WHEEL 58999 05/10/2012 Infosend Inc. 5,314.90 BILL MAILING 59000 05/10/2012 Jackson's Auto Supply-Napa 651.02 MISC VEHICLE PARTS 59001 05/10/2012 Kenny Graff 220.00 CERT REIMBBURSEMENT 59002 05/10/2012 Layne Christensen Company 4.723.91 R&R MOTOR-SANTIAGO BS#3 59003 05/10/2012 Los Angeles Times 137.80 LA TIMES DEL ANNUAL 59004 05/10/2012 Mc Fadden-Dale Hardware 565.02 PURCH APRIL 2012 59005 05/10/2012 Municipal Water District 2,025.00 SMRT TMR,OC WTR SUM SPSNR 59006 05/10/2012 Muzak LLC 70.88 MAY SVCS 59007 05/10/2012 Nickey Kard Lock Inc 6,235.13 FUEL-4/1-4/15/12 59008 05/10/2012 Office Solutions 399.42 PAPE:RIINKITONER 59009 05/10/2012 ONLINE Information Services, Inc. 45.92 COLLECTION SVCS 59010 05/10/2012 Orange County Hose Co. 235.92 HYDRO HOSE/REPAIRS 59011 05/10/2012 Orange County Water district 3,13920 EIR SVCS-#5-12!01-01/31112 59012 05/1012012 Orvac Electronics 173.37 FOIL,PLUGS,CONNECTORS 59017 05/10/2012 P.T.I.Sand&Gravel,Inc. 1,840.12 ROAD MATERIAL 59013 05/10/2012 Pacific Tek 21,334-50 PV100 PWR VAC W1100 GAL TANK 59014 05/10/2012 Powerstride Battery 459.50 BATTERIES 59015 05/10/2012 Praxair Distribution 119.15 ALL G/E CYLINDER RENTAL 59016 05/10/2012 Prudential Group Insurance 2,940.88 LIT DISABILITY MAY 2012 59021 05/10/2012 R J Services, Inc 844.88 WELL#15 MOVE/TEST ANTENNA 59019 05/10/2012 R&D Business Interiors 298.98 ERGONOMIC KNEELING CHAIR 59018 05/10/2012 RBF Consulting 15,450.96 2010 WTR LINE CONSULT MAR 59020 05/10/2012 Reed &Davidson, LLP 350.00 PROFESSIONAL SVCS MARCH 59022 05/10/2012 RKI Engineering,LLC 2,450.00 SCADA SUPPORT 58971 05/10/2012 ROBERT KREPS 92.42 CUSTOMER REFUND 59023 05/10/2012 Rutan &Tucker, LLP 4,464.00 FIRE CASES MAR 2012 59024 05/10/2012 Safety-Kleen Corp. 331.51 PARTS WASHER SVC 59025 05/10/2012 Sheward&Son&Sons 650.00 REPL RTS MOTOR 59026 05/10/2012 Shred-It USA Inc 100.99 SHREDDING SVC-4/04/12 59027 05/10/2012 Source Graphics 643.37 SPECIALTY PAPER/GIS 59028 05/10/2012 Southern Calif Edison Co. 36,112.48 ELECTRICAL CHGS APRIL W42612 04/27/2012 Southern Calif Edison Co. 1,625.36 ELECTRICAL CHGS MARCH 2012 59029 05/10/2012 Southern Calif Gas Co. 8,169.42 SERVICES ALL SITES APRIL 59030 05/10/2012 Southwest Valve 1,28223 SOLENOID VALVE 59031 05/10/2012 Staples Business Advantage 281.06 OFFICE SUPPLIES/PRINT CART 59032 05/10/2012 Stephen Parker/Petty Cash 76.64 PETTY CASH/OFFICE 59033 05/10/2012 Suburban Propane 31.45 PROPANE 59034 05/10/2012 Townsend Public Affairs, Inc. 3,000.00 CONSULTING SVCS-FEB12 59035 05/10/2012 United Industries 630.19 SAFETY GEAR/SUPPLIES 59036 05/10/2012 Urethane Solutions, Inc. 6,525.00 MANHOLE REHAB 59037 05/10/2012 Wells Supply Co 10,211.58 WHS STOCK 59038 05/10/2012 West Coast Safety Supply Co 990.14 FOAM FILLED FIBRGLS POLES Total $279,778.84 May 10, 2012 CHECK NUMBERS: Void Check 58903 $ (3,360.80) Manual Check 58970 $ 1,821.84 Computer Checks 58971-59038 $ 191,602.82 $ 190,063.86 WIRES: W-42612 Southern Cal Edison $ 1,625.36 W-42712 ACWA-H BA $ 88,087.62 $ 89,712.98 TOTAL OF CHECKS $ 279,776.84 PAYROLL NO. 9: Void Check 5249 Employee Checks/ Direct Deposits 5261-5264 $ 142,533.73 Third Party Checks 5265, 5267-5277 $ 47,030.24 Payroll Taxes $ 38,374.72 TOTAL OF PAYROLL $ 227,938.69 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $ 507,715.53 ------------------------------------------------------------------ ------------------------------------------------------------------ APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MAY 10, 2012 ------------------------------------------------------------------ ------------------------------------------------------------------ Cash Rewards Credit Card Bank of America 4/13/2012-4/30/2012 Date Vendor Name Amount Description 16-Apr AWWA-CA/NV 345.00 Wtr Treatment Review Course Sosa 25-Apr CISEC Inc 345.00 Program Training Sosa 25-Apr CISEC Inc 345.00 Program Training McCue TOTAL 1,035.00 Cal Card Credit Card U S Bank 4/12/2012-4/29/2012 Date Vendor Name Amount Description 10-Apr Amazon.com 6.40 (phone perfect fit leather case 11-Apr OCWA 120.00 Admin Professnl Day Lunch/KV,AA,CB 12-Apr Hach Company 480.50 Colormeter Test Kit 12-Apr Action Wholesale Products 151.88 Storage bins/whse 12-Apr LA Freightliner 197.74 Manifold-Air brake 12-Apr Mancomm 552.44 Forklift Training Manual 16-Apr OCWA 50.00 Membership dues KRV 16-Apr Home Depot 26.51 Mortar mix 16-Apr Draeger 324.00 Calibration 17-Apr Light Bulbs Etc 167.44 Light bulbs/Admin bldg 18-Apr Home Depot 90.87 Sod, Batteries etc 24-Apr Home Depot 23.79 Sod 25-Apr Cal Spec District Assn 600.00 CSDA Leadership Summit KRV 26-Apr Lamppost Pizza 68.61 Meal/BOD mtg-Staff Attendees 26-Apr Stater Bros 26.21 Beverages/CFO meeting TOTAL 2,886.39 ITEM NO. 8.3 AGENDA REPORT Meeting Date: May 10, 2012 To: Board of Directors From: Ken Vecchiarelli, General Manager Presented By: Stephen Parker, Finance Manager Dept: Finance Prepared By: Delia Lugo, Senior Accountant Subject: Investment Report for the Period Ending March 2012 SUMMARY: Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. STAFF RECOMMENDATION: That the Board of Directors receive and file the Investment Report for the Period Ending March 2012. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this item at its meeting held April 23 and supports staff recommendation. DISCUSSION: Staff is submitting the Investment Report for the Period Ending March 2012 for your review and approval. This report ends the third quarter for FY 2011/12. The Investment Portfolio Report presents the market value and percent yield for all the District investments by institution. The Investment Report Summary includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The total average portfolio yield for the month of March 2012 was 0.95%. STRATEGIC PLAN: FR 3-C: Manage Cash Flow to Maximize Investment Income PRIOR RELEVANT BOARD ACTION(S): Investment reports are presented to the Board of Directors on a quarterly basis. The Investment Report for the Period Ending December 31, 2011, was received and filed by the Board of Directors on March 8, 2012. ATTACHMENTS: Name. Description: Type: Invst Rpt 3-12.xlsx Investment Report for Period Ending March 2012 Backup Material Invst Agenda Backup - Mar 2012.xlsx Agenda Backup Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/10/2012 RK/RC 5-0 Yorba Linda Water District Investment Portfolio Report March 31, 2012 Market % Percent Value Cost of Total Institution Yield Checking Account: $ 80,757 $ 80,757 Wells Fargo Bank $ 80,757 $ 80,757 0.31% Total 0.00% Money Market Accounts: $ 9,953 $ 9,953 Wells Fargo Money Market 0.05% 2,709 2,709 US Bank(2008 Bond Reserve) 0.04% $ 12,662 $ 12,662 0.05% Total 0.05% Federal Home Loan Bank: $ 2,160,071 $ 2,144,397 US Bank(2008 Bond Reserve) 1.35% $ 2,160,071 $ 2,144,397 8.35% 1.35% Pooled Investment Accounts: $ 3,921,075 $ 3,921,075 Local Agency Investment Fund 0.38% 1,200,288 1,200,313 Ca1TRUST Short Term 0.40% 18,484,818 18,427,668 Ca1TRUST Medium Term 1.07% $ 23,606,181 $ 23,549,056 91.29% 0.92% $ 25,859,671 $ 25,786,873 100% Total Investments 0.95% Per Government Code requirements,the Investment Report is in compliance with the Yorba Linda Water District's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. Delia Lugo, Senior Accountant 3/31/12 Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of March 2012: Avg. Portfolio Avg. Portfolio #of Month Yield Without Yield With Days to of 2012 CaITRUST CaITRUST Maturity March 0.71% 0.95% 91 Below is are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 3/31/2011 3/31/2012 Monthly- March $ 25,685 $ 20,424 Year-to-Date $ 181,740 $ 189,297 Budget 2010/2011 2011/2012 Interest Budget, March YTD $ 117,000 $ 142,500 Interest Budget, Annual $ 156,000 $ 190,000 Interest earned on investments is recorded in the fund that owns the investment. Investment Summary Comparison Between Current and Previous Month The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: February 2012 % Alloc March 2012 % Alloc Fund Description Balance 2/29/2012 Balance 3/31/2012 Water Operating Reserve $ 2,546,136 9.64% $ 3,232,353 12.54% Water Emergency Reserve 1,006,102 3.80% 1,006,122 3.90% Water Capital Project Reserve 17,014,820 64.33% 16,645,068 64.57% Water Reserve for Debt Service 1,174,012 4.44% 405,143 1.57% COP Revenue Bond 2008- Reserve 2,161,995 8.17% 2,160,071 8.38% COP Revenue Bond 2008 217,145 0.82% 2,709 0.01% Sewer Operating 227,211 1.62% 201,916 0.78% Sewer Emergency Reserve 1,005,452 3.80% 1,005,473 3.90% Sewer Capital Project Reserve 1,094,745 3.38% 1,120,060 4.34% $ 26,447,618 100.00% $ 25,778,914 100.00% Wells Fargo Bank Checking Water Operating 251,368 (39,274) Sewer Operating 114,598 120,031 365,966 80,757 Totals $ 26,813,584 $ 25,859,671 ITEM NO. 9.1 AGENDA REPORT Meeting Date: May 10, 2012 Budgeted: No Total Budget: $0 To: Board of Directors Cost Estimate: $30,000 - $40,000 From: Ken Vecchiarelli, General Account No: 1-2010-0780-05 Manager Presented By: Stephen Parker, Finance Dept: Finance Manager Prepared By: Stephen Parker, Finance Manager Subject: Establishing a Line of Credit STAFF RECOMMENDATION: That the Board of Directors approve working with Kurt Yeager of Stradling Yocca Carlson & Rauth to pursue the next steps toward establishing a line of credit with Wells Fargo. DISCUSSION: Preliminary discussions have taken place with Wells Fargo, the District's primary financial institution, for exploring the opportunity to establish a line of credit. During the April 11 Budget Workshop, staff presented the line of credit opportunity and the general terms of the discussions staff had to that point. The Board gave direction for staff to move forward with pursuit of the line of credit. The next step in the process would be to have bond counsel explore the terms discussed with Wells Fargo. After that, bond counsel would work with the bank's legal counsel to establish a legal document that would be the foundation for the terms of the line of credit. The District has a previous relationship with Kurt Yeager of Stradling Yocca Carlson & Rauth for all recent bond actions taken. Staff proposes continuing to utilize that relationship for the next steps of the process of establishing a line of credit. The preliminary cost estimate the District has received from Wells Fargo for legal costs related to the line of credit is $15,000. The District's bond counsel's cost estimate is $15,000 - $25,000. These amounts were not originally budgeted for the current year, but even with these additions, the professional services expenses should be under budget for the year. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors considered the option of establishing a line of credit in discussions at their budget workshop on April 11. The Finance Committee also considered this option at their meeting on March 26 and recommended staff bring the discussion to the full Board in the Budget Workshop. Approved by the Board of Directors of the Yorba Linda Water District 5/10/2012 MB/RC 5-0 ITEM NO. 9.2 AGENDA REPORT Meeting Date: May 10, 2012 Budgeted: Yes Total Budget: $500,000 To: Board of Directors Cost Estimate: $784,000 Funding Source: All Water Funds From: Ken Vecchiarelli, General Manager Job No: 2011-08 Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: Pending Prepared By: Derek Nguyen, Water Quality CEQA Compliance: Exempt Engineer Subject: Award of Construction Contract for Pressure Regulating Stations Upgrade Project, Phase 1 SUMMARY: The District's Capital Improvement Program for FY 2011/2012 includes funding for refurbishing and upgrading four pressure regulating stations in need of repair due to aging and deteriorating conditions. Six bids were received on May 1, 2012. Following review of the bids, staff recommends award to the low bidder Vido Samarzich, Inc. for $597,020. The Engineer's Estimate for construction was $538,000. STAFF RECOMMENDATION: That the Board of Directors award the contract to Vido Samarzich, Inc. in the amount of $597,020 for construction of the Pressure Regulating Stations Upgrade Project, Phase 1 . COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee will consider this matter at its meeting being held May 3, 2012. Staff will report the Committee's recommendation at the Board meeting. DISCUSSION: The District has 41 existing pressure regulating stations (PRS), some of which are 30 to 40 years old. In some of the stations, excessive corrosion and deteriorating conditions have occurred. In addition to the aging conditions, some stations were not constructed with access and safety measures meeting current standards. The approved Capital Improvement Plan (CIP) includes budgets of $500,000 each in FY11/12 and 12/13 for refurbishing and upgrading of PRS determined as most in need. The FY11/12 work, identified as Phase 1 , was to refurbish four stations identified by Operations and Engineering staff as most in need. The work was limited to four stations to keep the work to a manageable level and schedule for implementation. In addition, staff was also trying to keep the project cost in the range of $500,000 budget, and estimated that four sites might be possible, based on other recent projects and the work required. After the design plans were completed, the design engineer prepared a detailed cost estimate and presented the Engineer's Estimate of construction of $538,000. In the last 2-3 years, construction bids have typically been 20% to 30% under the Engineer's Estimate. Unfortunately, this was not the case for this project, where the low bid was 11% over the Engineer's Estimate. This low bid ($597,020) appears to be realistic, as the three lowest bids, as shown below, are all within 5%. The total estimated cost of the Phase 1 PRS Upgrade Project is as follows: Engineering Design & Construction Services $95,000 City Permits & Inspection Costs $3,000 Material Testing $4,000 District Labor & Materials $25,000 Construction Cost (Including 10% Contingency) $657,000 TOTAL $784,000 As shown above, the total estimated cost of Phase 1 work will be significantly over the $500,000 budget. This $284,000 overage would leave an estimated $216,000 in the budget for Phase 2 work. With this in mind, staff recommendations are as follows: • Proceed with construction of the Phase 1 PRS work at $597,020, and upgrade the four sites determined as most in need of work. • Review the final cost of Phase 1 PRS work at the completion of construction. • Monitor and review the cost of other CIP projects budgeted for completion by June 30, 2012 (FY11/12) and for completion by June 30, 2013 (FY12/13). • Identify the next 3-4 PRS sites most in need of work. Using cost information from Phase 1 work, determine an estimated cost for design and construction for each site, and prioritize the sites based on cost versus benefit. • Determine if there is budget available from other projects completed under cost. • Using the above information, determine PRS sites for retrofit, estimate cost for each, and estimate budget for Phase 2 work. Present findings and make recommendations to PEO Committee and the Board for potential Phase 2 work. If, following review and discussion, the Board agrees with this approach, staff recommend that the Board award Phase 1 contract to Vido Samarzich, Inc. in the amount of $597,020 for the construction of the PRS Upgrade Project. As previously noted, six bids were received on May 1, 2012 with the following results: Company Bid Price Vido Samarzich, Inc. $597,020 Paulus Engineering, Inc. $611,000 Fleming Environmental, Inc. $627,479 Schuler Engineering Corporation $747,818 Mike Bubalo Construction Co, Inc. $832,000 Metro Builders & Engineers Group, Ltd. $1 ,060,000 The bid documents, state license, references and experience of the low-bid firm were reviewed and found to be acceptable. Therefore, staff recommends that the subject contract be awarded to Vido Samarzich, Inc. for $597,020. STRATEGIC PLAN: SR 3-A: Complete Implementation of Five Year Capital Improvement Plan from FY 2011-2015 with adopted amendments PRIOR RELEVANT BOARD ACTION(S): On October 13, 2011 , the Board of Directors authorized execution of a Professional Services Agreement with Hall & Foreman, Inc. in the amount of $82,400 to prepare engineering design, bidding support, and construction management services for the Pressure Regulating Stations Upgrade project. Approved by the Board of Directors of the Yorba Linda Water District 5/10/2012 RC/RK 5-0 ITEM NO. 9.3 AGENDA REPORT Meeting Date: May 10, 2012 Budgeted: Yes Total Budget: $6 Million To: Board of Directors Cost Estimate: $125,000 Funding Source: District & Developer Funds From: Ken Vecchiarelli, General Account No: 101-2700 Manager Job No: 2010-11 B Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: N/A Prepared By: Steve Conklin, Engineering CEQA Compliance: N/A Manager Subject: Potential Northeast Developments and Proposed District Planning Study SUMMARY: Based on several recent meetings with representatives for two potential residential development projects, identified as the Sage/Cielo Vista Project and the Yorba Linda Estates Project, these proposed developments may be moving forward through the planning and environmental analysis stages. Staff will provide an introduction and status report on these projects and their effects on the District's water and sewer system infrastructure. Staff recommends performing a planning study to assess various options for providing water service to these proposed developments, in a manner that will maximize service objectives to both the proposed developments and, in association with planned District improvements, to the surrounding existing service areas as well. STAFF RECOMMENDATION: That the Board of Directors authorize staff to proceed with final preparation of an RFP and solicit proposals for the Northeast Area Water Service Planning Study. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee will consider this matter at its meeting being held May 3, 2012. Staff will report the Committee's recommendation at the Board meeting. DISCUSSION: Staff has held meetings over the past two years with representatives for potential residential development projects in the undeveloped areas of Improvement District 1 . Two viable development projects have emerged that are identified as the Sage/Cielo Vista Project and the Yorba Linda Estates Project. The project sites are adjacent to each other, in unincorporated county territory, located between San Antonio Road and the Hidden Hills community. The discussions in recent months have centered around insuring that these potential projects work closely together to insure a master planned water system infrastructure that integrates well with the District's existing systems. Based on information from project representatives, it appears that one or both of these projects may be moving forward. To provide water service for the developments, District staff considered existing facilities in the surrounding area and additional water supply, pumping and storage facilities that may be necessary to provide the District's approved level of service criteria. Included in these considerations are the Quarterhorse, Springview, Little Canyon, Chino Hills, Santiago and Hidden Hills reservoirs and associated pumping facilities. Also considered is the Fairmont Booster Station Project, for which replacement and expansion is planned, with proposed capabilities to pump groundwater into the 780-ft Zone and the 1000-ft Zone. District Engineering and Operations staff discussed the multiple issues and options concerning water service for these developments. In order to appropriately evaluate the issues and options, staff recommends that hydraulic modeling be performed. That is, to prepare a planning study based on computer-based hydraulic modeling to determine the various alternative means to serve the potential new residential developments as well as to meet the ultimate needs and goals of the District for this portion of the water service area. Included is a recommendation that the study include water quality analyses modeling. Over the last two years, the District, with the assistance of MWH Americas as its engineering consultant, has upgraded its computer-based hydraulic model of the water system to a GIS-based program. Two elements remain in order to complete the upgrade: to add the capability for water- quality modeling, and to calibrate the new model (i.e., fine tune it) with actual flow and pressure data. Staff recommends that these two elements be the initial task of the above-proposed planning study, the completed hydraulic model would be used in tasks to evaluate various facilities and scenarios. This would lead to additional tasks including cost analyses and recommendations for new facilities and upgrade of existing facilities, including the Fairmont Booster Pump Station, to serve the potential new residential developments and the ultimate needs of the service area. Given the estimated cost of this important planning study (in the range of $100,000 to $125,000), staff recommends soliciting multiple engineering firms for proposals to prepare the study. A draft RFP for the recommended planning study is in process. STRATEGIC PLAN: SR 3-13: Continue Planning for Long Term Capital Improvements and Replacements into the future ATTACHMENTS: Description: Type: SKMBT C55212043007300.pdf Backup Material Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/10/2012 MB/RC 5-0 YORBA LINDA ESTATES STUDY#18A-YLE, NICHOLAS/LONG,SIMMONS, FRIEND CONCEPTUAL SITE PLAN / GRADING STUDYi�fl - PAD DIMENSIONS TABLEj\, Y.L. ESTATES NICHOLAS LONG SIMMONS FRIEND . —�',r / PROPOSED PAD DMENSONS I Pll' I-DINENSONS PROPOSED PAD DI—SONS PROPOSED PAD DIMENSIONS ' , '. >O' w MDE NDE � ESfAIE LOi P„'� VAAB tA0'�1DO'DEEP VAR6 1O0'ti 110'DEEP NO OF L015.1]S 'J NO OF L0R5 NO aF LO15= Of NOTE: a '`-i✓���J // �. 1\l� ( - ~/ �/ �' 1. GRADING REOUIRED TO PERFECT 2 ESTATES. LONG, AND F g SIMMONS,AND FRIEND PROPERTY S PROPERTY ASSUMING S SIMULTANEOUS CONSTRUCTION 2. EXISTING TOPOGRAPHY FLOWN JULY JULY 2003 a DATED:03-28-12 //((/�/ �ar®ra e - 77' CN {� RIJ�- Yorba Linda Water District Potential Northeast Developments and Proposed District Planning Study Presented by: Steve Conklin Engineering Manager May 10, 2012 - '1F • J LEGEND ■ WESTERN SERVICE AREA ■ IMPROVEMENT DISTRICT 1 ■ IMPROVEMENT DISTRICT NOT TO SCALE ■ PULTE DEVELOPMENT SHAPELL(SITE A)PROPERTY SHELL PROPERTY MURDOCK PROPERTY UNDEVELOPED PART OF ID1 YLWD WATER SERVICE AREA J LI O � A 9 FWY 'qG FIGURE 1.3 SUB-AREA BOUNDARIES h ( YORBA LINDA WATER DISTRICT IL p- ti LAND USE DIAGRAM Residentiai Commercial R-Low C-Neighborhood *qa♦'6bF R-Medium Low C-General �i`�♦\'04 R-Medium C-Office 'F R-Medium High Industrial \ R-High _ I-Manufacturing Open Space Area Plan OS-General Area Plan A-Community Core Waterli-ake Area Plan B-Shell Property - Area Plan C-Murdock Property - Area Plan D-City Hall I Community Center - Area Plan E-West Bastanchury ---- BNSF Railroad C City Boundary - Sphere of Influence E a Yf 1 u ANAHEIM ANANElM .� LEGEND 428 ZONE:,IA) 906 ZONE(SBR 430 ZONE B) 920 ZONE(SA) 570 ZONE(2) 1060 ZONE(56) ■ 675 ZONE(3A) ■ 1165 ZONE(5U) NOT TO SCALE 686 ZONE(M) 991 ZONE(SL) 716ZONE(4CRiJ 1160 ZONE(6A) 1160 780.1 ZONE(4A) . 1300 ZONE(68) ■ 780.2 ZONE(413) 1390 ZONE(6C) 780.3 ZONE(4C) 1133 ZONE(60) 1390 . 7804 ZONE(4D) E 1 000 - YLWD WATER SERVICE AREA V ■ I 13 Y' Laid ti 1 780-4 9 rw FWY FIGURE 1.5 PRESSURE ZONE BOUNDARIES YORBA LINDA WATER DISTRICT ~_ i� IL YORBA LINDA ESTATES PROJECT CONCEPTUAL WATER PLAN w, � r kl " L -�\ � lly'lf'-x WA y I�I W y 11 '1 1\ ,,� � � �� ��, � � tip,( '���✓ ' '� ��j l �� c�cEr/o �� I IS I 9 YORBA LINDA ESTATES STUDY#18A-YLE, NICHOLASILONG,SIMMONS,FRIEND CONCEPTUAL SITE PLAN 1 GRADING STUDY U - PAD DIMENSIONS TABLE Y.L. ESTATES NICHOL45 LONG SIMMONS FRIEND v '}- -- .� � �-� �± CF UM rrorosm reo olwRacvs axrrwsm rw olRCes+orc raorosm rw ollEnslaus IwroG:o Y.P r,wExaatis —_ � IF �� f �� 1 >aos.�raa•� ua xw s��a'..r.a� Yn.we -�, 5f�}U/ '° � �j I l _ a 'm 0 9F I➢1S.t4 r, rte- I Ir I f q r �_ MF ry w `fir= NOTE: 11 6RA91k0 RECUIR&0 TO PERFFCT TBTATE8.AIGXOLIEND PROPERTY f T - - g ✓1 1y r h f RIYYOXR,ASIR FRIENR PROPERTY PROPERTY OUZ C RG pIYVLTANEOV6 COXBTRVCTIOk -, a. TOPOGRAPHY FLOWN JUL 26 - I JULY 2D0R mum 9 ` RATep:oa-aa.1a r Proposed Northeast Area Water Service Planning Study • Complete Water System hydraulic model — Calibrate with actual flow & pressure data — Add capability for modeling WQ elements • Add proposed new demands and evaluate alternatives & impacts on existing facilities • Identify feasible alternatives, perform cost & water-quality analyses • Provide recommendations for new and upgraded facilities, including Fairmont site Staff Recommendation That the Board of Directors authorize staff to proceed with final preparation of an RFP and to solicit proposals for the Northeast Area Water Service Planning Study ( Estimated Cost : $ 100,000 to $ 125,000) ITEM NO. 11.2 AGENDA REPORT Meeting Date: May 10, 2012 Subject: Finance-Accounting Committee (Kiley/Hawkins) Minutes of meeting held April 23, 2012 at 4:00 p.m. Meeting scheduled May 23, 2012 at 4:00 p.m. ATTACHMENTS: Name: Description: Type: 042312 FA - Minutes.doc FA Mtg Minutes 04/23/12 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING April 23, 2012 A meeting of the Finance-Accounting Committee was called to order by Director Kiley 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 Robert R. Kiley, Chair Stephen Parker, Finance Manager Director Phil Hawkins 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. Investment Report for Period Ending March 2012 Mr. Parker presented the Investment Report for the Period Ending March 2012. He explained that due to a sharp decrease in Cal-TRUST's Medium Term portfolio, the District's yield dropped below 1% to 0.95%. Mr. Parker indicated that based on the current market, he did not forsee the portfolio yield rising above 1% again until the investment market turns around. Mr. Parker also identified significant changes between investment funds, including a decrease of over $750,000 due to paying the March debt service interest payment for the 2003 and 2008 COP's, and a draw-down of $584,000 for payments related to ongoing capital improvement projects. The committee supported submitting the quarterly report to the Board to receive and file. 3. DISCUSSION ITEMS 3.1. March 2012 Budget to Actual Results Mr. Parker indicated that the budget to actual results were similar to the previous month. There were no supplies and services line items that were trending worse than budgeted other than those that had been previously discussed. Mr. Parker shared that March was a good month in terms of water sold, and the District was lower in water operating revenue by only 2.1% from the historical trend three quarters of the way through the year. The committee indicated they had reviewed the details of the monthly results earlier and had no additional questions. 3.2. FY 2012/13 Budget Calendar Update Mr. Parker referred the committee to the updated budget calendar. Included was a clean version as well as a "red-line" version. The majority of the items that changed were second drafts of supplies and services 1 budgets that did not need to go to committees again and the associated changes to the proposed committee, Board and Board Workshop meeting dates. 3.3. 2003 COP Advanced Refunding Update Mr. Parker referred to the attachment, which was provided by the District's financial advisors, Fieldman Rolapp & Associates. The attachment laid out the timeline and steps to issue the advanced refunding bonds in early July. 3.4. Line of Credit Update (Verbal Report) Mr. Parker indicated that later in the week staff was to meet with bond council to have an initial discussion and go over a plan for pursuing a line of credit. He also shared that the anticipated costs for bond council was within a similar range as provided by Wells Fargo - $15,000 to $30,000. Mr. Parker added that when compared to the cost of issuance for the 2003 COP's (over $260,000), the line of credit had a very inexpensive cost of issuance — even at the high end of $60,000. 3.5. Status of Strategic Plan Initiatives Mr. Parker covered the changes in the strategic plan initiatives. Major developments included a Board vote on mailing a Notice of Proposed Water Rate Increase to customers on the next Board Meeting, the implementation of the CAL-Card program and the District attaining recognition by the Government Finance Officers Association for issuing an award-winning Budget for FY 11/12 (the District's first such award) and award-winning CAFR for FY 10/11 (the District's second such award). 3.6. Rescheduling May 2012 Meeting Date This item was handled by the General Manager through email correspondence prior to the committee meeting. As the regularly scheduled May Finance-Accounting Committee meeting date fell on Memorial Day, the May meeting was moved to Wednesday, May 23, 2012. 3.7. Future Agenda Items and Staff Tasks None. 4. ADJOURNMENT 4.1. The Committee adjourned at 4:35 p.m. The next meeting of the Finance- Accounting Committee will be held May 23, 2012 at 4:00 p.m. 2 ITEM NO. 13.1 AGENDA REPORT Meeting Date: May 10, 2012 Subject: Meetings from May 11, 2012 - June 30, 2012 ATTACHMENTS: e: Description: Type: BOD - Activities Calendar.pdf BOD Activity Calendar Backup Material Board of Directors Activity Calendar Event Date Time Attendance by: May 2012 District Offices Closed Fri, May 11 7:OOAM Pub Affairs-Communications-Tech Committee Meeting Mon, May 14 4:OOPM Melton/Beverage Yorba Linda City Council Tue, May 15 6:30PM Melton MWDOC Board Wed, May 16 8:30AM Melton/Staff OCWD Board Wed, May 16 5:30PM Kiley/Staff District Offices Closed Fri, May 18 7:OOAM OC Water Summit Fri, May 18 7:30AM Kiley Joint Committee Meeting with MWDOC and OCWD Tue, May 22 4:OOPM Hawkins/Beverage Finance-Accounting Committee Meeting Wed, May 23 4:OOPM Kiley/Hawkins Yorba Linda Planning Commission Wed, May 23 7:OOPM Collett Board of Directors Regular Meeting Thu, May 24 8:30AM District Offices Closed Fri, May 25 7:OOAM District Offices Closed Mon, May 28 7:OOAM Citizens Advisory Committee Meeting Tue, May 29 8:30AM Beverage Board of Directors Workshop Meeting Thu, May 31 8:OOAM ISDOC Thu, May 31 11:30AM Collett June 2012 District Offices Closed Fri, Jun 1 7:OOAM WACO Fri, Jun 1 7:30AM Hawkins Pub Affairs-Communications-Tech Committee Meeting Mon, Jun 4 4:OOPM Melton/Beverage Yorba Linda City Council Tue, Jun 5 6:30PM Hawkins MWDOC/MWD Workshop Wed, Jun 6 8:30AM Melton/Staff OCWD Board Wed, Jun 6 5:30PM Kiley/Staff Planning-Engineering-Operations Committee Meeting Thu, Jun 7 4:OOPM Collett/Kiley District Offices Closed Fri, Jun 8 7:OOAM Personnel-Risk Management Committee Meeting Tue, Jun 12 4:OOPM Beverage/Collett Yorba Linda Planning Commission Wed, Jun 13 7:OOPM Kiley Board of Directors Regular Meeting Thu, Jun 14 8:30AM District Offices Closed Fri, Jun 15 7:OOAM Exec-Admin-Organizational Committee Meeting Mon, Jun 18 4:OOPM Hawkins/Melton Yorba Linda City Council Tue, Jun 19 6:30PM Melton MWDOC Board Wed, Jun 20 8:30AM Melton/Staff LAFCO Wed, Jun 20 9:OOAM Beverage OCWD Board Wed, Jun 20 5:30PM Kiley/Staff Board of Directors Special Meeting Thu, Jun 21 6:30PM District Offices Closed Fri, Jun 22 7:OOAM Citizens Advisory Committee Meeting Mon, Jun 25 8:30AM Beverage Finance-Accounting Committee Meeting Mon, Jun 25 4:OOPM Kiley/Hawkins Yorba Linda Planning Commission Wed, Jun 27 7:OOPM Collett Board of Directors Regular Meeting Thu, Jun 28 8:30AM District Offices Closed Fri, Jun 29 7:OOAM 5/3/2012 10:00:57 AM