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HomeMy WebLinkAbout2013-05-23 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 23, 2013, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Gary T. Melton, President Robert R. Kiley, Vice President Michael J. Beverage Ric Collett Phil Hawkins 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. Recognition of Employees for Their Service to the District · Jorge Lopez, Maintenance Distribution Operator II (5 Years) · Cody Nottingham, Maintenance Distribution Operator II (5 Years) 7. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 7.1. Minutes of the Board of Directors Regular Meeting held May 9, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,043,511.74. 7.3. Progress Payment No. 3 for the 2012 Waterline Replacement Project, Phase II Recommendation: That the Board of Directors approve Progress Payment No. 3 in the net amount of $15,532.50 to TBU, Inc. for construction of the 2012 Waterline Replacement Project, Phase II, Job No. 2011-20. 7.4. Terms and Conditions for Water and Sewer Service with Brandywine Homes Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Brandywine Homes, Job No. 201304. 7.5. Terms and Conditions for Water and Sewer Service with Pacific Development Group II Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Pacific Development Group II, Job No. 201309. 7.6. Renewal of Uniform Contract Recommendation: That the Board of Directors authorize the Acting General Manager to make an addendum to the current agreement as part of the District's Supplier Contract with Aramark. The new term of the contract would be 12 months with service starting on July 1, 2013 and ending on June 30, 2014 with a total estimated cost of $19,000. 8. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 8.1. Hidden Hills Rd Pipeline Emergency Repair Work Recommendation: That the Board of Directors authorize transfers not to exceed $42,000, from Water Capital Reserves to Operations Maintenance Account 5020- 0730-00, to fund $40,000 for the recently completed emergency repair work and an estimated $2,000 to refurbish washed-out horse trail base material, to be completed during June 2013, for a total current fiscal year amount of $42,000. 8.2. 2013 Public Health Goals Report Recommendation: That the Board of Directors approve the 2013 Public Health Goals Report; authorize staff to Notice the Public of its availability for review and comment; and schedule a Public Hearing to respond or accept public comments, recommended for the regular Board meeting on June 27, 2013. 8.3. Approval for Full-Time Safety and Training Coordinator Position Recommendation: That the Board of Directors approve a full-time Safety and Training Coordinator position for FY 2013/14. 9. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District’s interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 9.1. Proposed Budget for FY 2013/14 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report 10.2. Directors' Report · OC Water Summit - May 17, 2013 (Collett/Kiley/Melton) · City of Placentia Business Expo - May 18, 2013 (Kiley) 10.3. Acting General Manager's Report 10.4. General Counsel's Report 10.5. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS 11.1. Executive-Administrative-Organizational Committee (Melton/Kiley) · Minutes of meeting held May 21, 2013 at 4:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled June 18, 2013 at 4:00 p.m. 11.2. Finance-Accounting Committee (Hawkins/Melton) · Meeting scheduled May 31, 2013 at 8:30 a.m. 11.3. Personnel-Risk Management Committee (Collett/Beverage) · Minutes of meeting held May 8, 2013 at 4:00 p.m. · Minutes of meeting held May 14, 2013 at 4:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled June 11, 2013 at 4:00 p.m. 11.4. Planning-Engineering-Operations Committee (Kiley/Hawkins) · Minutes of meeting held May 6, 2013 at 4:00 p.m. · Meeting scheduled June 6, 2013 at 3:00 p.m. 11.5. Public Affairs-Communications-Technology Committee (Beverage/Collett) · Minutes of meeting held May 7, 2013 at 4:00 p.m. · Minutes of meeting held May 22, 2013 at 3:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled June 3, 2013 at 4:00 p.m. 11.6. YLWD-City of Placentia Joint Agency Committee (Melton/Hawkins) · Meeting scheduled June 17, 2013 at 9:30 a.m. 11.7. YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) · Minutes of meeting held April 17, 2013 at 6:00 p.m. · Meeting scheduled June 19, 2013 at 6:00 p.m. 11.8. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Melton) · Meeting scheduled May 28, 2013 at 4:00 p.m. 11.9. Citizens Advisory Committee (Beverage) · Minutes of meeting held May 20, 2013 at 8:30 a.m. (To be provided at the next regular Board meeting.) · Meeting scheduled June 24, 2013 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. MWDOC Board - May 15, 2013 (Melton/Staff) 12.2. YL Planning Commission - May 15, 2013 (Melton) 12.3. OCWD Board - May 22, 2013 (Kiley) 12.4. YL City Council - May 21, 2013 (Collett) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 24, 2013 - June 30, 2013 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: ACWA/JPIA, et al. vs. Insurance Company of the State of Pennsylvania, et al. (OC Superior Court - Case No. 00486884) 14.2. Conference with Legal Counsel - Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Related to Line Break at 1301 North Rose Drive, Placentia CA 92870 Number of Potential Cases: One 15. ADJOURNMENT 15.1. The next Regular Board of Directors Meeting will be held Thursday, June 13, 2013 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 23, 2013 Subject:Minutes of the Board of Directors Regular Meeting held May 9, 2013 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 050913_BOD_-_Minutes.doc BOD Mtg Minutes 05/09/13 Minutes Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 RK/RC 5-0 1 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 9, 2013, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 9, 2013 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Melton at 8:30 a.m. The meeting was held in the Board Room at the District’s Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE President Melton led the pledge. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Gary T. Melton, President Steve Conklin, Acting General Manager Robert R. Kiley, Vice President John DeCriscio, Operations Manager Michael J. Beverage Stephen Parker, Finance Manager Ric Collett Annie Alexander, Executive Secretary Phil Hawkins Cindy Botts, Management Analyst Cheryl Kielty, Customer Service Rep II Delia Lugo, Senior Accountant Ken Mendum, Water Maintenance Superintendent Damon Micalizzi, Public Information Officer Carlos Moya, Accounting Assistant II Matt Ostiz, Maintenance Worker I Rachel Padilla, Customer Service Supervisor Maria Trujillo, Accounting Assistant I Rick Walkemeyer, SCADA Administrator ALSO PRESENT Brett Barbre, Director, Metropolitan Water District/ Municipal Water District of Orange Co. Gene Hernandez, Councilmember, City of Yorba Linda Eddy Beltran, Senior Counsel, Kidman Law LLP Daniel Mole, Chair, YLWD Citizens Advisory Committee Mike Moore 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Conklin requested to add the following item to the agenda as there was a need to take immediate action on this item and the need for action came to staff’s attention subsequent to the agenda being posted. 14.2. CONFERENCES, SEMINARS, AND SPECIAL EVENTS City of Placentia Green Business Expo – May 18, 2013 2 OCWD 80th Anniversary Legislative Reception – June 3, 2013 Recommendation: That the Board of Directors authorize Director attendance at these events if desired. Director Beverage made a motion, seconded by Director Collett, to add Item No. 14.2. to the agenda. Motion carried 5-0. 5. PUBLIC COMMENTS Mr. Moore, a customer of the District, addressed the Board and thanked them for their efforts in building redundancy in the water distribution system over the last few years. He then expressed his concern regarding the vacant position of General Manager and urged the Board to take action to fill this position and the position of Assistant General Manager as soon as possible. Director Barbre addressed the Board and provided an update on the current water supply situation. He noted that the snow pack this year was very low and fortunately, MWD had approximately 3.5M acre feet of water in storage. He also mentioned that the MWD Board would soon be discussing the allocation of additional revenue received due to increased water sales. He stated that he would be advocating the use of these funds to supplement long-term expenditures such as the OPEB Irrevocable Trust Fund and the PAYGo program to help mitigate against future rate increases. Director Barbre then invited the Board to attend the Orange County Water Summit on May 17, 2013. President Melton thanked the MWD Board for their foresight in storing water for such times when it isn’t as plentiful. 6. SPECIAL RECOGNITION 6.1. Recognition of Employees for Their Service to the District Mr. Conklin noted that Mr. Lopez and Mr. Nottingham were unfortunately unable to attend this meeting and would be recognized at another Board meeting in the future. Jorge Lopez, Maintenance Distribution Operator II (5 Years) Cody Nottingham, Maintenance Distribution Operator II (5 Years) Matt Ostiz, Maintenance Worker I (5 Years) Mr. Mendum provided an overview of Mr. Ostiz’s work history and the various certifications he has obtained. Cheryl Kielty, Customer Service Representative II (15 Years) Mr. Parker provided an overview of Ms. Kielty’s work history with the District. Mr. Parker noted that Ms. Kielty had fielded an estimated 37,000 customer calls during her tenure. 3 The Board and audience applauded Ms. Kielty and Mr. Ostiz for their service. Mr. Conklin presented each of them with a pin commemorating the number of years they had served the District. Messrs. Mendum and Ostiz and Mmes. Kielty and Padilla left the meeting at this time. 6.2. Recognize Staff for Receipt of Distinguished Budget Presentation Award for FY 2012/13 from the Government Finance Officers Association Mr. Conklin recognized Messrs. Parker and Moya and Mmes. Botts, Lugo, and Trujillo and thanked them for their work on the FY 2012/13 budget document. Mr. Conklin noted that receipt of this award represented a significant achievement for the agency and reflected the commitment of the District and its staff to the highest principals of governmental budgeting. This is the second year in a row that the District has been presented with this award. The Board and audience applauded these individuals for their efforts. Mr. Moya and Mmes. Botts, Lugo and Trujillo left the meeting at this time. 7. COMMITTEE REPORTS 7.1. Citizens Advisory Committee (Beverage) Minutes of the meeting held April 22, 2013 at 8:30 a.m. were provided in the agenda packet. Mr. Mole addressed the Board and provided a report regarding matters discussed during the meeting including the Committee’s structure and the possible adoption of bylaws. He noted that there are currently 10 members actively serving on the Committee. Originally there were 12 but one person recently resigned and the other has not attended any meetings in some time. On a side note, Mr. Mole suggested that the District provide some kind of formal identification for its subcontractors so that the public can easily ascertain that these individuals are performing work for the District. Mr. Mole continued his report and briefly commented on a presentation provided by staff during the meeting regarding the District’s public relations efforts. He then requested feedback from the Board in regards to the Committee’s role. Director Kiley commented on his previous experience serving on the Committee and the responsibility of its members to disseminate the information they were receiving out to the District’s constituents. Councilmember Hernandez spoke briefly and agreed with Mr. Mole’s suggestion for identification of District subcontractors due to the increase of burglaries in the community. Director Beverage also commented on the Committee’s discussion regarding their role and matters to be presented to them for review and comment as well as the development of a brochure containing FAQs 4 related to the District that will be made available for distribution by Committee members. Mr. Mole provided additional comments regarding the development of bylaws or a code of conduct that would delineate the expectations of members serving on the Committee. Director Barbre spoke briefly about a brochure being developed by MWDOC that will contain FAQs about water issues in Orange County. This publication will be made available to the District for distribution to its customers. Next meeting is scheduled to be held May 20, 2013 at 8:30 a.m. 8. CONSENT CALENDAR Director Collett made a motion, seconded by Director Kiley, to approve the Consent Calendar. Director Collett abstained from voting on a payment made to Placentia Disposal as listed on the Credit Card Summary in Item No. 8.4. as he has a financial interest with the vendor. Motion carried 5-0. 8.1. Minutes of the Board of Directors Workshop Meeting held April 18, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Minutes of the Board of Directors Special meeting held April 19, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 8.3. Minutes of the Board of Directors Regular Meeting held April 25, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 8.4. Payments of Bills, Refunds and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $605,622.15. 8.5. Progress Payment No. 1 for the Yorba Linda Blvd Pump Station Project Recommendation: That the Board of Directors approve Progress Payment No. 1 in the net amount of $80,197.10 to ECI, Inc. for construction of the Yorba Linda Blvd Pump Station Project, Job No. 2008- 17B. 5 8.6. Investment Report for Period Ending March 31, 2013 Recommendation: That the Board of Director’s receive and file the Investment Report for the Period Ending March 2013. 9. ACTION CALENDAR 9.1. Approval of Change Order No. 1 for the 2012 Waterline Replacement Phase II Project Mr. Conklin explained that work was currently proceeding on construction of this project. During excavation, the contractor discovered some very wet soil conditions that required a more suitable backfill material than was was previously specified. Also included in the Change Order are some District-initiated changes related to the size and material of the pipeline. Director Kiley stated that the Planning-Engineering-Operations Committee had discussed this matter at its most recent meeting and recommended Board approval. Mr. Conklin briefly responded to questions from the Board related to the condition of the soil. Director Kiley made a motion, seconded by Director Collett, to approve Change Order No. 1 in the amount of $29,764.11 and no additional days to TBU Construction Inc., for construction of the 2012 Waterline Replacement Phase II Project, Job No. 2011-20. Motion carried 5-0. 9.2. Draft 2013 Water Quality Report Mr. Conklin explained that the District is required by law to provide this report to its customers on an annual basis. Historically, this notice had to be mailed to each customer at a cost of approximately $9,000. The restraints regarding delivery of this report were recently modified to allow electronic distribution on the District’s website. This change in legislation will result in a substantial cost savings for the District and its constituents. A small number of reports will still be printed at a cost of $900 and will be made available to those customers who might request one. Mr. Conklin further noted that over 23,000 analyses were conducted during the previous year and that the District had never received a violation. Director Beverage stated that the Public Affairs-Communications-Technology (PACT) Committee had reviewed the report at its most recent meeting and the members were impressed with the opportunity for the District to save additional money. Hard copies of the printed report will also be provided to members of the Citizens Advisory Committee for reference and distribution. Director Beverage made a motion, seconded by Director Hawkins, to approve the 2013 Water Quality Report and authorize staff to make this report available on the District’s website pursuant to the new State and Federal law regarding CCR’s electronic delivery. Motion carried 5-0. 6 9.3. Implementation of a Consolidated Storage and Backup Solution Mr. Conklin explained that this matter had also been presented to the PACT Committee for consideration. It was being brought forward to the Board at this meeting to allow enough time for installation of the hardware and software before June 30, 2013 should the authorization be approved. Mr. Conklin then summarized the benefits the package would provide the District. Mr. Beltran noted that the total cost of the agreement needed to be revised to indicate an amount not to exceed $76,000. This change would allow for additional costs that may be incurred related to the installation of some of the more difficult servers. Mr. Conklin and Mr. Walkemeyer then responded to questions from the Board regarding the potential need for these additional services, the location of the hardware and backup data, and future plans for offsite data storage. Director Collett made a motion, seconded by Director Hawkins, to authorize the Acting General Manager to execute a Professional Services Agreement with MR2 Solutions in an amount not to exceed $76,000.00, for the hardware, software and installation costs for a Consolidated Storage and Backup Solution. Motion carried 5-0. Mr. Mole left the meeting at this time. 9.4. Award of Contract for Operations and Efficiency Study Mr. Conklin explained that back in April, the Board had interviewed two firms and selected Koff & Associates, Inc. to perform the study. Staff has been working with the firm and legal counsel in preparing the agreement. The kick-off meeting and initial interviews of Directors and staff have been scheduled for June 4-5, 2013. Director Beverage made a motion, seconded by Director Hawkins, to approve a Professional Services Agreement with Koff & Associates, Inc., for preparation of an Operations and Efficiency Study, for a total fee not to exceed $31,900, in accordance with the attached proposal, dated March 18, 2013, and updated project schedule dated April 23, 2013. Motion carried 5-0. 9.5. Adopting a Public Investment Policy Mr. Parker explained that the State of California recommended that the District’s investment policy be reviewed and updated as necessary on an annual basis. This year, staff desired to do a large scale revision based on new guidance provided by the California Municipal Treasurer’s Association. There would be no significant changes to authorized investments. Legal counsel reviewed the revised policy and requested some additional minor revisions. Mr. Parker responded to questions from the Board regarding the District’s benefit received from belonging to and accepting the suggested investment criteria of various financial associations. 7 Director Hawkins made a motion, seconded by Director Kiley, to adopt Resolution No. 13-06 Setting Forth a Public Funds Investment Policy and Rescinding Resolution No. 11-24. Motion carried 5-0 on a Roll Call vote. 10. DISCUSSION ITEMS 10.1. Well #18 Engine Overhaul Mr. Conklin explained that in accordance with Resolution No. 13-03, staff was required to inform the Board when it was necessary to perform non- scheduled repairs to capital assets and the associated costs would be charged to the District’s Maintenance Reserve Account. Mr. Conklin reported that such work is currently needed for the natural-gas engine powering Well 18. Mr. DeCriscio then provided the Board with additional details regarding the work needed to get this well back on line. Mr. Conklin and Mr. DeCriscio then responded to questions from the Board regarding the cost estimate, time needed to complete the repair work and previous repair work performed on the same engine. 11. REPORTS, INFORMATION ITEMS, AND COMMENTS 11.1. President’s Report President Melton stated that he would like to recognize a District staff member, Mr. Eduardo Gutierrez, for the assistance he provided to an individual over the weekend. While it turned out that the person wasn’t a District customer, Mr. Guiterrez made a great effort to provide any help that he could. Director Kiley commented on the opening of the new hardware store in Yorba Linda and the District’s information booth and water station at Costco’s Business Expo. 11.2. Directors’ Report Anaheim Water Sustainability Campus Dedication Ceremony – May 7, 2013 (Kiley) Director Kiley reported on his attendance at this event and noted that the facility was open to the public. 11.3. Acting General Manager’s Report Mr. Conklin reported that the District would be sponsoring a table at the upcoming Orange County Water Summit and that 3 of the Directors and a few members of staff and the Citizens Advisory Committee would be in attendance. He further reported that the kick-off meeting for the Operations & Efficiency study had been scheduled for June 4-5, 2013. In addition, 2 training sessions regarding harassment prevention have been scheduled for May 16, 2013. Construction is in progress for the two projects on Richfield Road and Gun Club Road and a Request for Proposals has been issued for design of the Fairmont Booster Station. The public comment period for the Environmental Impact Report for the District’s request for annexation to OCWD will end on May 17, 2013. And 8 finally, the deadline for response from those public agencies contacted in regards to their interest in purchasing or leasing the Plumosa property is fast approaching (May 28, 2013). 11.4. General Counsel’s Report Mr. Beltran stated that he did not have anything to report and that the Closed Session would not be needed. 11.5. Future Agenda Items and Staff Tasks Mr. Micalizzi addressed the Board regarding a news article related to the proposed Esperanza Hills and Cielo Vista developments which contained several misstatements associated with the District. He requested direction from the Board in regards to a response. Mr. Conklin noted that in order for the Board to provide direction related to this matter, the Directors would need to take a vote to add it to the agenda. Director Beverage made a motion, seconded by Director Collett to add this matter to the agenda. Motion passed 5-0. Following discussion, Mr. Micalizzi was directed to formally respond to the writer of the article. Mr. Micalizzi left the meeting at this time. 12. COMMITTEE REPORTS 12.1. Executive-Administrative-Organizational Committee (Melton/Kiley) Next meeting is scheduled to be held May 21, 2013 at 4:00 p.m. 12.2. Finance-Accounting Committee (Hawkins/Melton) Minutes of the meeting held April 22, 2013 at 12:00 p.m. were provided in the agenda packet. Next meeting is scheduled to be held May 31, 2013 at 8:30 a.m. 12.3. Personnel-Risk Management Committee (Collett/Beverage) Minutes of the meeting held May 8, 2013 at 4:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held May 14, 2013 at 4:00 p.m. 9 12.4. Planning-Engineering-Operations Committee (Kiley/Hawkins) Minutes of the meeting held May 6, 2013 at 4:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held June 6, 2013 at 3:00 p.m. 12.5. Public Affairs-Communications-Technology Committee (Beverage/Collett) Minutes of the meeting held May 7, 2013 at 4:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held May 22, 2013 at 3:00 p.m. 12.6. YLWD-City of Placentia Joint Agency Committee (Melton/Hawkins) Next meeting is scheduled to be held June 17, 2013 at 9:30 a.m. 12.7. YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) Minutes of the meeting held April 17, 2013 at 6:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held June 19, 2013 at 6:00 p.m. 12.8. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Melton) Next meeting is scheduled to be held May 28, 2013 at 4:00 p.m. 13. INTERGOVERNMENTAL MEETINGS 13.1. MWDOC/MWD Workshop – May 1, 2013 (Melton/Staff) Director Melton attended and commented on a presentation regarding the Bay-Delta Conservation Plan which was provided at the meeting. Also discussed was the uncertainty of the water bond. 13.2. OCWD Board – May 1, 2013 (Kiley) Director Kiley attended but did not have any District related business to report. 13.3. WACO – May 3, 2013 (Hawkins/Kiley) Directors Hawkins and Kiley were unable to attend this meeting. 10 13.4. YL City Council – May 7, 2013 (Kiley) Director Kiley attended and commented on a presentation regarding Southern California Edison’s advanced meter program. The firm contracted to perform the City’s audit also provided a presentation regarding the agency’s FY 2011/12 financial statements. Councilmember Hernandez briefly commented on a proposed moratorium on planting pine trees which was discussed during the meeting and responded to questions from the Board regarding the City’s audit. 14. BOARD OF DIRECTORS ACTIVITY CALENDAR 14.1. Meetings from May 10, 2013 – June 30, 2013 The Board reviewed the activity calendar and made no changes. Director Collett asked for confirmation of the date for the District facilities tour as it wasn’t listed on the calendar. Mr. Conklin responded that the tour had been scheduled for June 20, 2013. 14.2 CONFERENCES, SEMINARS, AND SPECIAL EVENTS City of Placentia Green Business Expo – May 18, 2013 OCWD 80th Anniversary Legislative Reception – June 3, 2013 The Board briefly discussed each of the events. Director Kiley expressed an interest in attending the Business Expo. Director Beverage made a motion, seconded by Director Collett, to authorize Director attendance at the City of Placentia Green Business Expo if desired. Motion carried 5-0. (No Closed Session was held.) 15. CLOSED SESSION 15.1. Conference with Legal Counsel – Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: ACWA/JPIA, et al vs. Insurance Company of the State of Pennsylvania, et al (OCSC – Case No. 00486884) 15.2. Conference with Legal Counsel – Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Related to Line Break at 1301 North Rose Drive, Placentia CA 92870 Number of Potential Cases: One 11 16. ADJOURNMENT 16.1. The meeting was adjourned at 10:11 a.m. The next Regular Board of Directors Meeting will be held Thursday, May 23, 2013 at 8:30 a.m. Steve Conklin Board Secretary ITEM NO. 7.2 AGENDA REPORT Meeting Date: May 23, 2013 Budgeted:Yes To:Board of Directors Cost Estimate:$1,043,511.74 Funding Source:All Funds From:Steve Conklin, Acting General Manager Presented By:Stephen Parker, Finance Manager Dept:Finance 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 $1,043,511.74. DISCUSSION: The wire and major item on this disbursement list are as follows: A wire of $494,629.54 to MWDOC for March water purchase; and, a check of $98,730.17 to ACWA/JPIA for June health premium. The balance of $208,665.77 is routine invoices. The Accounts Payable check register total is $802,025.48; Payroll No. 10 total is $241,486.26; and, the disbursements of this agenda report are $1,043,511.74. A summary of the checks is attached. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. ATTACHMENTS: Name:Description:Type: CkReg52313_BOD.pdf Check Register Backup Material 13-CS_523.doc Cap Sheet Backup Material 13_CC_523.xls Credit Card Summary Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 RK/RC 5-0 . May 23, 2013 CHECK NUMBERS: Void Checks 61210 and 61324 $ (55,806.61) Computer Checks 61255—61329 $ 360,454.67 $ 304,648.06 WIRES: W-51413 MWDOC $ 494,629.54 W-52013 Southern California Edison $ 2,747.88 $ 497,377.42 TOTAL OF CHECKS AND WIRES $ 802,025.48 PAYROLL NO. 10: Direct Deposits $ 155,677.71 Third Party Checks 5574—5583 $ 43,693.00 Payroll Taxes $ 42.115.55 TOTAL OF PAYROLL $ 241,486.26 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $ 1,043,511.74 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MAY 23, 2013 ==================================================================. Date Vendor Name Amount Description 04/30/13 Public Agency Risk 100.00 PARMA dues Knight 04/30/13 Westside Building Matl 437.41 Tapping bit 05/01/13 Wells Supply 9,900.14 WHS stock 05/01/13 The Home Depot 56.49 Paint and supplies 05/01/13 Staples 108.39 General office supply 05/01/13 Fullerton Paint 194.02 Marking blue caution 05/01/13 The Home Depot 238.08 Concrete 05/02/13 Keno's 27.19 Lunch/Discuss Personnel-GM Recruit 05/02/13 Lampost Pizza 28.62 Lunch/IT-HR training 05/02/13 C. Wells Pipeline 1,058.40 Safety coupling 05/02/13 Light Bulbs Etc 89.51 Light bulbs/facilities 05/02/13 The Home Depot 43.68 Extension chords/surge protectors 05/03/13 Answer One 657.59 Answering service 05/03/13 America's Instant Signs 708.00 Deposit/Signage 05/07/13 Esecuritytogo.com 1,281.55 Barracuda updates 05/07/13 WW Grainger 289.27 Light bulbs/facilities 05/07/13 Light Bulbs Etc 104.98 Light bulbs/facilities 05/08/13 Haaker Equipment Co 306.68 Repair CCTV cable 05/09/13 Staples 10.79 General office supply TOTAL 15,640.79 Cal Card Credit Card U S Bank 04/30/2013-05/09/13 TOTAL 15,640.79 ITEM NO. 7.3 AGENDA REPORT Meeting Date: May 23, 2013 Budgeted:Yes Total Budget:$1.12 M To:Board of Directors Cost Estimate:$1.5 M Funding Source:Water Capital Reserves From:Steve Conklin, Acting General Manager Account No:101-2700 Job No:2011-20 Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:No Prepared By:Joe Polimino, Project Engineer CEQA Compliance:Exempt Subject:Progress Payment No. 3 for the 2012 Waterline Replacement Project, Phase II SUMMARY: Work continues on construction of the 2012 Waterline Replacement Project, Phase II. The project consists of replacing old waterlines and appurtenances in seven locations, ranging from 200 to 3,000 feet, with a total replacement length of approximately 6,700 feet. STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 3 in the net amount of $15,532.50 to TBU, Inc. for construction of the 2012 Waterline Replacement Project, Phase II, Job No. 2011-20. DISCUSSION: In accordance with the contract documents, TBU Inc. submitted a request for Progress Payment No. 3, in the amount of $16,350.00 for completed work through April 30, 2013. During this period, the contractor ground and overlaid the trench with asphalt on Tamarisk Dr., Fircrest Dr. and Pebble Beach Lane. The contractor also completed mainline and services at the Ohio St. location. The status of the construction contract with TBU Inc. is as follows: The current contract is $1,359,300.11 and 370 calendar days starting February 1, 2013. If approved, Progress Payment No. 3 is $16,350.00 (1.2% of the total contract amount), less 5% retention of $817.50 for a net payment of $15,532.50. If approved, total payments to date including retention will be $534,350.00 (39.3% of the total contract amount). As of April 30, 2013, 89 calendar days were used (24.1% of the contract time). Staff reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 3 is attached for your reference. 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): The Board authorized the President and Secretary to execute a construction agreement in the amount of $1,359,300.11 for the 2012 Waterline Replacement Project, Phase II with TBU Inc., on November 21, 2012. The Board has approved two progress payments to date for this project, the last of which was approved on April 25, 2013. ATTACHMENTS: Name:Description:Type: TBU_Phase_II_Waterline_Progress_Pay_Request_3.pdf TBU Phase II Waterline Progress Pay Request 3 Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 RK/RC 5-0 ITEM NO. 7.4 AGENDA REPORT Meeting Date: May 23, 2013 Budgeted:N/A To:Board of Directors Funding Source:Developer Funded From:Steve Conklin, Acting General Manager Account No:1/2-2600 Job No:201304 Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:N/A Prepared By:Ariel Bacani, Engineering Technician II CEQA Compliance:N/A Subject:Terms and Conditions for Water and Sewer Service with Brandywine Homes SUMMARY: Brandywine Homes is proposing to develop Tentative Tract Map (TTM) 17548 into 51 condominium units on 5.12 acres. The project is located near the southeast corner of Eureka Avenue and Yorba Linda Boulevard, as shown in the attached exhibit. STAFF RECOMMENDATION: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Brandywine Homes, Job No. 201304. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee discussed this matter at its meeting held May 6, 2013 and supports staff's recommendation. DISCUSSION: The District has existing Zone 2 pipelines in Yorba Linda Boulevard and Eureka Avenue, which are adequate in size and of sufficient pressure to serve the project. Staff will require the applicant to extend the existing water main at Blair Drive to Eureka Avenue and provide a looped water system from this extension to Yorba Linda Boulevard. The proposed development will also require the abandonment of a 1927-installed 20-inch steel transmission line and the relocation of five associated services. The project is located within Drainage Area "2" of the District's Sewer Service Area. The District has an existing sewer main in Eureka Avenue that is adequate in size to serve the project. The applicant will need to extend the sewer main onto Blair Drive and connect an existing house and the public sewer facilities within the proposed development. The Terms and Conditions for Water and Sewer Service with Brandywine Homes are attached for your consideration. ATTACHMENTS: Name:Description:Type: 201304_T_C.doc Terms & Conditions for Water & Sewer Service with Brandywine Homes Agreement 201304_Exhibit.pdf Exhibit of Proposed Water & Sewer Improvements for Brandywine Homes Exhibit Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 RK/RC 5-0 Date: MAY 23, 2013 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER AND SEWER SERVICE NAME OF APPLICANT: BRANDYWINE HOMES LOCATION OF PROJECT: SE CORNER OF EUREKA AVE. & YORBA LINDA BLVD. TRACT NUMBER: TTM 17548 JOB NUMBER: 201304 LOT(S): 51 The applicant will be required to complete to the satisfaction of the District the following items that have an “X” following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) X The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 1 and that the home is subject to a property tax over and above the normal 1% Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. l. 4) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 2 and that the home is subject to a property tax over and above the normal 1% Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. 2. 5) X The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 6) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. Page 2 of 5 NAME OF APPLICANT: BRANDYWINE HOMES LOCATION OF PROJECT: SE CORNER OF EUREKA AVE. & YORBA LINDA BLVD. – TTM 17548 7) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. 8) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 9) X The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 10) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District’s approval of the construction plans. 11) X The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 12) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 13) X The applicant shall provide per the District specifications one complete set of "As Built" mylars and electronic copy of ACAD drawings (version 2008 or later) for the Water facilities. 14) X The applicant shall complete an Application to and Agreement for Water Service. 15) X The applicant shall pay all of the water fees as required by the Rules and Regulations of the District. 16) X The applicant shall pay meter fees associated with the installation of radio read meters for this project. 17) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Water Service. 18) X The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. Page 3 of 5 NAME OF APPLICANT: BRANDYWINE HOMES LOCATION OF PROJECT: SE CORNER OF EUREKA AVE. & YORBA LINDA BLVD. – TTM 17548 19) X The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan and the District’s Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 20) X The applicant’s water facilities (on-site, within the private streets) shall be District owned and maintained. 21) X The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. 22) X The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 23) X The applicant shall install one (1) water Sampling Station(s) in conformance with the District’s Standard Plans. 24) X The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 25) X The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 26) X All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 27) X The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 28) X The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 29) X The applicant shall adjust and raise to grade all valve covers within the limits of this project. 30) X The applicant shall install a pressure regulator in all dwellings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 31) X The applicant shall complete a Temporary Water Permit for all water that will be used through the new water services to serve the new dwellings. Page 4 of 5 NAME OF APPLICANT: BRANDYWINE HOMES LOCATION OF PROJECT: SE CORNER OF EUREKA AVE. & YORBA LINDA BLVD. – TTM 17548 32) X The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 33) X The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 34) X The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly prior to the water meters being turned on for service. 35) X The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 36) X The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District’s Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 37) The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 38) X The applicant shall complete an Application to and Agreement for Sewer Service. 39) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Sanitary Sewer Service. 40) X The applicant shall pay all of the sewer fees as required by the Rules and Regulations of the District. 41) X The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 42) X The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) X The applicant’s sewer facilities (on-site, within the private streets) shall be District owned and maintained. 44) X The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District’s Plans and Specifications. Page 5 of 5 NAME OF APPLICANT: BRANDYWINE HOMES LOCATION OF PROJECT: SE CORNER OF EUREKA AVE. & YORBA LINDA BLVD. – TTM 17548 45) X The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. 46) X The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 47) X The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 48) X The applicant shall extend the existing water main at Blair Dr. to Eureka Ave. and loop the proposed public water system from this extension to the existing 16-inch transmission main at Yorba Linda Blvd., per approved plans and District Specifications. 49) X The applicant shall abandon the existing 20-inch steel transmission main and relocate five associated water services and meters, per approved plans and District Specifications. 50) X The applicant shall extend the existing sewer main from Eureka Ave. onto Blair Dr., and connect an existing house and the public onsite sewer system within the proposed development, per approved plans and District Specifications. 51) X The applicant shall complete a Sewer Connection Application and Permit for Sewer Service for the existing house at 5112 Eureka Ave., Yorba Linda. I hereby certify that the foregoing Terms and Conditions were approved at the May 23, 2013 Regular Meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application To and Agreement with the Yorba Linda Water District for Water and Sewer Service is not executed for the project under consideration. Steve Conklin, P.E., Acting General Manager EX.16" YOI13A LINDA BLVD. VICINITY MAP 11 NOT TO SCALE NORTH ECT TION PREPARED BY: EXHIBIT SCALE: N.T.S. YORBA LINDA WATER DISTRICT PROPOSED WATER AND SEWER IMPROVEMENTS DATE: 1717 E. MIRALOMA AVENUE El FOR TRACT 17548 4/18/2013 PLACENTIA, CALIFORNIA 92870 BRANDYWINE HOMES FILENAME: (714) 701-3100 J-201304 ITEM NO. 7.5 AGENDA REPORT Meeting Date: May 23, 2013 Budgeted:N/A To:Board of Directors Funding Source:Developer Funded From:Steve Conklin, Acting General Manager Account No:1-2600 Job No:201309 Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:N/A Prepared By:Ariel Bacani, Engineering Technician II CEQA Compliance:N/A Subject:Terms and Conditions for Water and Sewer Service with Pacific Development Group II SUMMARY: Pacific Development Group II is proposing to develop a Buy Buy Baby store within the east end of the Savi Ranch shopping center. The 1.83-acre project site is located west of the existing Kohl's store at 23001 Savi Ranch Parkway, as shown in the attached exhibit. STAFF RECOMMENDATION: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Pacific Development Group II, Job No. 201309. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee discussed this matter at its meeting held May 6, 2013 and supports staff's recommendation. DISCUSSION: The District has an existing Zone 2, 10-inch water pipeline looped within the shopping center, and is adequate in size and of sufficient pressure to serve the project site. The applicant requests to install a double-check detector assembly for their fire suppression system and one water service for commercial purposes. The project site is located within the District's Sewer Service Area. The District has an existing sewer main within the shopping center that is adequate in size to serve the proposed store. The applicant requests to construct a sewer lateral onto a private sewer line that feeds into the public sewer manhole. The proposed Terms and Conditions for Water and Sewer Service with Pacific Development Group II are attached for your consideration. ATTACHMENTS: Name:Description:Type: 201309_T_C.doc Terms & Conditions for Water & Sewer Service with Pacific Development Group II Agreement 201309_Exhibit.pdf Exhibit of Proposed Water & Sewer Improvements for Pacific Development Group II Exhibit Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 RK/RC 5-0 Date: MAY 23, 2013 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER AND SEWER SERVICE NAME OF APPLICANT: PACIFIC DEVELOPMENT GROUP II LOCATION OF PROJECT: WEST OF 23001 SAVI RANCH PKWY. – BUY BUY BABY STORE TRACT NUMBER: N/A JOB NUMBER: 201309 LOT(S): 1 The applicant will be required to complete to the satisfaction of the District the following items that have an “X” following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) X The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 1 and that the home is subject to a property tax over and above the normal 1% Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. l. 4) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 2 and that the home is subject to a property tax over and above the normal 1% Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. 2. 5) X The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 6) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. Page 2 of 5 NAME OF APPLICANT: PACIFIC DEVELOPMENT GROUP II LOCATION OF PROJECT: WEST OF 23001 SAVI RANCH PKWY. – BUY BUY BABY STORE 7) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. 8) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 9) X The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 10) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District’s approval of the construction plans. 11) X The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 12) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 13) X The applicant shall provide per the District specifications one complete set of "As Built" mylars and electronic copy of ACAD drawings (version 2008 or later) for the Water facilities. 14) X The applicant shall complete an Application to and Agreement for Water Service. 15) X The applicant shall pay all of the water fees as required by the Rules and Regulations of the District. 16) X The applicant shall pay meter fees associated with the installation of radio read meters for this project. 17) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Water Service. 18) X The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. Page 3 of 5 NAME OF APPLICANT: PACIFIC DEVELOPMENT GROUP II LOCATION OF PROJECT: WEST OF 23001 SAVI RANCH PKWY. – BUY BUY BABY STORE 19) X The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan and the District’s Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 20) X The applicant’s water facilities (on-site) shall be Privately owned and maintained. 21) X The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. 22) X The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 23) The applicant shall install one (1) water Sampling Station(s) in conformance with the District’s Standard Plans. 24) X The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 25) X The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 26) X All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 27) X The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 28) X The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 29) X The applicant shall adjust and raise to grade all valve covers within the limits of this project. 30) X The applicant shall install a pressure regulator in all dwellings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 31) X The applicant shall complete a Temporary Water Permit for all water that will be used through the new water services to serve the new dwellings. Page 4 of 5 NAME OF APPLICANT: PACIFIC DEVELOPMENT GROUP II LOCATION OF PROJECT: WEST OF 23001 SAVI RANCH PKWY. – BUY BUY BABY STORE 32) X The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 33) X The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 34) X The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly prior to the water meters being turned on for service. 35) X The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 36) X The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District’s Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 37) X The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 38) The applicant shall complete an Application to and Agreement for Sewer Service. 39) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Sanitary Sewer Service. 40) X The applicant shall pay all of the sewer fees as required by the Rules and Regulations of the District. 41) The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 42) The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) X The applicant’s sewer facilities (on-site) shall be Privately owned and maintained. 44) The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District’s Plans and Specifications. Page 5 of 5 NAME OF APPLICANT: PACIFIC DEVELOPMENT GROUP II LOCATION OF PROJECT: WEST OF 23001 SAVI RANCH PKWY. – BUY BUY BABY STORE 45) X The applicant shall adjust and raise to grade all public sewer manhole covers within the limits of this project. 46) X The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 47) The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 48) X The applicant shall install one new water service and one new fire protection line, per approved plans and District Specifications. 49) X The applicant shall install one new sewer lateral onto an existing private sewer line, per approved plans and District Specifications. I hereby certify that the foregoing Terms and Conditions were approved at the May 23, 2013 Regular Meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application To and Agreement with the Yorba Linda Water District for Water and Sewer Service is not executed for the project under consideration. Steve Conklin, P.E., Acting General Manager " 8"DCDA 2r7; ---------- ---- - ---- -------------_ / ,ec // /_ =aP EX.10" i/ WATER/ IIIy I EFNjI \LJ 1 1 III III I I III I I III I I III I I III I I III I I III I I EX.15'WATER EASEMENT EXISTING KOHL'S PROPOSED 4" SEWER LATERAL —PROPOSED 2" WATER SERVICE PROPOSED 6" EX.6- P R IVATE SEWER PRIVATE SEWER I I EX.10" EX.PUBLIC WATER MANHOLE I I I I c{' 1 I I LOCATION MAP VICNITY MAP PREPARED BY: EXHIBIT IIBII SCALE: N.T.S. YORBA LINDA WATER DISTRICT PROPOSED WATER& SEWER IMPROVEMENTS DATE: FOR 04/23/2013 El 1717 E. MIRALOMA AVENUE PACIFIC DEVELOPMENT GROUP II PLACENTIA, CALIFORNIA 92870 BUY BUY BABY STORE FILENAME: (714) 701-3100 J-201309 ITEM NO. 7.6 AGENDA REPORT Meeting Date: May 23, 2013 Budgeted:Yes Total Budget:$19,000 To:Board of Directors Cost Estimate:$19,000 Funding Source:All Funds From:Steve Conklin, Acting General Manager Presented By:John DeCriscio, Operations Manager Reviewed by Legal:N/A Prepared By:Harold Hulbert, Operations Assistant CEQA Compliance:N/A Subject:Renewal of Uniform Contract SUMMARY: The District currently has a Supplier Contract agreement with Aramark, to supply uniforms, floor mats and hand towels to the District. The current agreement expires on June 30, 2013 with no other renewal options available within the contract. Aramark, who has been performing their contract duties since July 2009, has submitted a request to renew the agreement for one additional year. STAFF RECOMMENDATION: That the Board of Directors authorize the Acting General Manager to make an addendum to the current agreement as part of the District's Supplier Contract with Aramark. The new term of the contract would be 12 months with service starting on July 1, 2013 and ending on June 30, 2014 with a total estimated cost of $19,000. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee discussed this item at its meeting held March 6, 2013 and supports staff's recommendation. DISCUSSION: The District's Maintenance and Supplier agreements include options for renewing the contract without the District having to seek new proposals. Each contract agreement can be renewed up to three times extending the total contract to four years. The District may extend this renewal beyond the current terms of the contract with an addendum if both parties agree. The District's current contract with Aramark ends on June 30, 2013. Aramark has provided superior service compared with previous uniform contractors the District has used in the past. Therefore, District staff asked Aramark if they would consider a one-year extension to the current contract. Aramark sent an email to the District stating they wish to renew the contract for another year with a price increase of 2% to the service cost. Service cost items are those related to the cost for lost, damaged or changed items. Several factors that have lead to an increase in this cost, are new employees hired, replacement of damaged uniforms and size changes. The following chart provides what the District has paid in service cost through April 19, 2013 for the current contract year. The chart also shows estimated cost though the end of the fiscal year and how the 2% change would increase the service cost for next year. Based upon these numbers, the District would only see an estimated increase of $28.41 to our current cost. As of April 23, 2013 the District has paid $15,764.56 for the current fiscal year, of which $1,420.69 was in service charges. Staff estimates that the District will end the fiscal year with a cost of $19,518.03 for this contract, of which $1,758.95 would be in service charges. Staff is estimating next's year budget for this contract will be $19,000 for the period of July 1, 2013 through June 30, 2014. Account Current Service Charge Est. Cost for Year 2% Increase Est. Service Charge for 2013-2014 3040$43.12$53.39$0.86$54.25 4030$13.14$16.27$0.26$16.53 4040$13.14$16.27$0.26$16.53 5020$695.85$861.53$13.92$875.45 5030$158.55$196.30$3.17$199.47 5040$72.67$89.97$1.45$91.43 5050$135.61$167.90$2.71$170.61 5060$288.61$357.33$5.77$363.10 Totals$1,420.69$1,758.95$28.41$1,787.36 Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 RK/RC 5-0 ITEM NO. 8.1 AGENDA REPORT Meeting Date: May 23, 2013 Budgeted:No To:Board of Directors Cost Estimate:$42,000 Funding Source:Water Operating Fund From:Steve Conklin, Acting General Manager Account No:1-5020-0730-00 Presented By:Steve Conklin, Acting General Manager Dept:Operations Reviewed by Legal:N/A Prepared By:Anthony Manzano, Senior Project Manager CEQA Compliance:N/A Subject:Hidden Hills Rd Pipeline Emergency Repair Work SUMMARY: February 7, 2013, a leak was detected in the District's 12-inch diameter Hidden Hills Rd. pipeline, near Starlight Dr. intersection. Operations Department staff attempted to repair the leak by first isolating nearby valves. Because the existing valves were too far apart and inoperable, a temporary repair was made and staff solicited bids for the repair work including installation of two new valves. Staff reviewed bids and selected TBU, Inc. Staff recommends transferring $42,000 from Water Reserves to Operations Maintenance Account to fully fund this work. STAFF RECOMMENDATION: That the Board of Directors authorize transfers not to exceed $42,000, from Water Capital Reserves to Operations Maintenance Account 5020-0730-00, to fund $40,000 for the recently completed emergency repair work and an estimated $2,000 to refurbish washed-out horse trail base material, to be completed during June 2013, for a total current fiscal year amount of $42,000. DISCUSSION: February 7, 2013, a leak in Hidden Hills Rd. was reported. Operations investigated the leak and discovered that it was occurring at the District's existing 12-inch diameter steel waterline (constructed in 1988) within the horse trail along the westerly shoulder of Hidden Hills Road, near the Starlight Dr. intersection. In accordance with standard operating procedures, staff immediately started repair work by attempting to isolate the closest available valves - to limit the number of customers that would be out of water service. Unfortunately, the existing isolation valves were far apart and did not properly close. The only viable option was to temporarily repair the line and solicit bids for a contractor to install new isolation valves, in addition to completing permanent waterline repairs. Staff solicited informal bids for the waterline repair work and the lowest responsive bid was submitted by TBU, Inc. (TBU). In addition, TBU was selected for the work because they're currently mobilized at the District, completing the 2012 Waterline Replacement Project, we have their insurance on file and they've been completing the work competently and satisfactorily. As shown on the attached invoices, TBU completed the following two major work components: 1.Labor, Equipment and Materials required for Installation of a new 14X12-inch Tee along with new 14-inch and 12-inch Butterfly Valves and Appurtenances, for $34,221.95. 2.Labor, Equipment and Materials required to install new Pipe and Fittings for Repair of the leaking 12-inch diameter steel Waterline, for $5,478.68. The total cost for the above, itemized work is $39,700.63. As discussed above, the City of Yorba Linda will require the District to replace horse trial base material that will cost an estimated $2,000. To reduce costs, TBU will complete the follow-up work when they're mobilized at this location next month, completing Hidden Hills Rd. waterline improvements as part of the 2012 Waterline Replacement Project. The Overall total estimate for this emergency repair effort is $42,000. STRATEGIC PLAN: SR 1-D: Strengthen Existing Emergency Operations Partnerships ATTACHMENTS: Name:Description:Type: TBU_Hidden_Hills_Tee___Valve_Inst._05-08-13.pdf TBU Invoice - Tee & Valves Backup Material TBU_Hidden_Hills_12-in._Waterline_Repair_05-08- 13.pdf TBU Invoice - 12" Waterline Repair Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 PH/RK 5-0 ITEM NO. 8.2 AGENDA REPORT Meeting Date: May 23, 2013 Budgeted:Yes To:Board of Directors Funding Source:All Water Funds From:Steve Conklin, Acting General Manager Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:N/A Prepared By:Derek Nguyen, Water Quality Engineer CEQA Compliance:N/A Subject:2013 Public Health Goals Report SUMMARY: Attached is a copy of the District-prepared Public Health Goals Report. California law mandates that the District prepare a PHG report every three years if any water quality measurements have exceeded any PHG levels or Maximum Contaminant Level Goals(MCLGs). The report provides information to the public about the occurrence of constituents in the public water supply, the health risks associated with the contaminant, and the approximate cost to totally eliminate any trace of contaminant regardless of how minimal the risk might be. PHG levels and MCLG levels are not enforceable standards and no action to meet them is required. STAFF RECOMMENDATION: That the Board of Directors approve the 2013 Public Health Goals Report; authorize staff to Notice the Public of its availability for review and comment; and schedule a Public Hearing to respond or accept public comments, recommended for the regular Board meeting on June 27, 2013. DISCUSSION: California Code of Regulations' Health and Safety Code Section 116470 (b) mandates that the District, as an agency with more than 10,000 service connections, prepare a Public Health Goals Report commencing July 1, 1998 and thereafter, every three years if any water quality measurements exceed any Public Health Goal levels or Maximum Contaminant Level Goal levels. The law requires the Public Health Goals Report to address substances in the water that are above Public Health Goals (PHGs) levels established by the California Office of Environmental Health Hazard Assessment (OEHHA). For substances where OEHHA has not set a PHG, the United States Environmental Protection Agency Maximum Contaminant Level Goals (MCLGs) apply. PHGs and MCLGs are not enforceable standards and no action to meet them is required. Only five (5) water constituents (total coliform, copper, arsenic, uranium and gross alpha) were detected that exceeded their PHGs and MCLGs. It should be noted that none of the water constituents detected exceeded the enforceable drinking water standards. The law also requires the governing Board to officially accept the Public Health Goals report, notify the public of its availability for review and hold a public hearing to respond to and/or accept public comments. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors accepted and filed the 2010 Public Health Goals Report in a public hearing conducted on June 24, 2010. On May 13, 2010 the Board of Directors approved the final draft of the 2010 Public Health Goals Report and authorized staff to notify the public of its availability for review and comment. ATTACHMENTS: Name:Description:Type: 2013_Public_Health_Goals_Report_Draftl_04242013.pdf Draft 2013 Public Health Goals Report Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 MB/RC 5-0 2013 PUBLIC HEALTH GOALS REPORT Board of Directors Gary T. Melton, President Robert R. Kiley, Vice President Michael J. Beverage, Director Phil Hawkins, Director Ric Collett, Director Steve Conklin, P.E. Acting General Manager June 2013 Yorba Linda Water District I 1717. E. Miraloma Ave, Placentia CA 92870 I Tel 714.701.3000 I www.ylwd.com 2013 Public Health Goals Report 2 July 2013 Background Provisions of the California Health and Safety Code Section 116470 (b) specify that water utilities with more than 10,000 connections prepare a special report by July 1, 2013 if their water quality measurements have exceeded any Public Health Goals (PHGs). PHGs are non-enforceable goals established by the Cal-EP ’sAOfficeAofA Environmental Health Hazard Assessment (OEHHA). The law also requires that where OEHHA has not adopted a PHG for a constituent, the water suppliers are to use the Maximum Contaminant Level Goals (MCLGs) adopted by the USEPA. Only constituents which have a California primary drinking water standard and for which either a PHG or MCLG has been set are to be addressed. There are a few constituents that are routinely detected in water systems at levels usually well below the drinking water standards for which no PHG nor MCLG has yet been adopted by OEHHA or USEPA including Total Trihalomethanes. These will be addressed in a future required report after a PHG has been adopted. IfAaAconstituentAwasAdetectedAinAtheADistrict’sAwaterAsupplyAbetweenA2010AandA2012AatAaA level exceeding an applicable PHG or MCLG, this report provides the information required by the law. Included is the numerical health risk associated with the M CL and the PHG or MCLG, the category or type of risk to health that could be associated with each constituent, the best treatment technology available that could be used to reduce the constituent level, and an estimate of the cost to install that treatment if it is appropriate or feasible. Public Health Goals and Drinking Water Standards To help keep drinking water safe, the California Legislature passed the Calderon-Sher Safe Drinking Water Act of 1996. This law requires the California Department of Publ ic Health (CDPH) to regularly test drinking water supplies and set drinking water standards known as the Maximum Contaminant Levels (MCLs). The Act also requires the Office of Environmental Health Hazard Assessment (OEHHA) to develop Public Health Goals for contaminantsAinACalifornia’sApubliclyAsuppliedAdrinkingAwater:A Public water utilities with more than 10,000 service connections are required to prepare a Public Health Goals report by July 1, 1998 and every three years thereafter if any water quality measurements exceed any of the Cal-EP ’sAPublic Health Goals (PHGs) or USEP ’sA Maximum Contaminant Level Goals (MCLGs). 2013 Public Health Goals Report 3 July 2013 What is a Public Health Goal? A PHG is the level of a chemical contaminant in drinking water that does not pose a significant risk to health. PHGs are not regulatory standards; however, state law requires CDPH to set drinking water standards for chemical contaminant as close to the corresponding PHG as is economically and technically feasible. In some cases, it may not be feasible for CDPH to set the drinking water standard for a contaminant at the same level as the PHG. The technology to treat the chemicals may not be available, or the cost of treatment may be very high. CDPH must consider these factors when developing a drinking water standard. PHGs are non-enforceable goals established by the California-EnvironmentalAProtectionA gency’sA(Cal-EPA) Office of Environmental Health Hazard Assessment. The law requires that where OEHHA has not adopted a PHG for a constituent, the water suppliers are to use the MCLGs adopted by the United States Environmental Protection Agency (USEPA). Only constituents which have primary drinking water standard and for which either a PHG or MCLG has been set are to be addressed. Appendix 1 is a list of California’sAPHGsAandA ppendixA2AisAaAlistAofA the Federal MCLGs. Included in the appendices are the test results for YLWD for the years 2010-2012. If a constituent was detected in the District’sAwaterAsupplyAfromAyears 2010 to 2012 at a level exceeding an applicable PHG or MCLG, this report provides the information required by law. Also included in this report is the numerical public health risk associated with the PHG and/or MCLG, the category or type of risk to health that could be associated with constituent, the best treatment technology available that could be used to reduce the constituent level, and an estimate of the cost to install that treatment, if appropriate and feasible. The purpose of the law is to give water system customers access to informa tion on levels of contaminants even below the enforceable mandatory drinking water standard known as Maximum Contaminant Levels (MCLs). In addition, the law intends to provide an idea of the cost to totally eliminate any trace of the contaminant from drin king water regardless of how minimal the risk might be. The required report is unique to California. How does OEHHA Establish a Public Health Goal? The process for establishing a PHG for a chemical contaminant in drinking water is very rigorous. OEHHA scientists first compile all relevant scientific information available, whichAincludesAstudiesAofAtheAchemical’sAeffectAonAlaboratoryAanimalsAandAstudiesAofA humans, who have been exposed to the chemical. The scientists use data from these studies to perform a health risk assessment, in which they determine the levels of the 2013 Public Health Goals Report 4 July 2013 PHGs Set at Levels That Protect Human Health For carcinogens, OEHHA establishes the PHG at the “one-in-one-million”AriskA level. At that level, not more than one person in a population of one million people drinking 2 liters of water daily for 70 years would be expected to develop cancer as a result of exposure to that chemical. For chemicals that cause health effects other than cancer, OEHHA sets the PHG at a level that is not expected to cause any toxic effects, including birth defects and chronic illness. contaminant in drinking water that could be associated with various adverse health effects. In performing the health risk assessment, OEHHA considers the following factors: Certain groups of people, such as pregnant women, young children, the elderly or persons with pre-existing illnesses, who may be especially susceptible to the chemical’sAadverseAeffects:ATheAPHGAmustAconsiderAhealthAeffectsAonAindividualsA in these groups. Accumulated effects of exposure to the chemical from other sources, such as food, air and soil; as well as and other forms of drinking water, such as showering. TheAchemical’sApotentialAtoAinterfereAwithAbodilyAfunctionsAinAaAwayAthatA increases the risk of chronic health problems, such as liver damage. Possible synergistic effects from the combined exposure to the chemical in question with other chemicals, which may further increase health risks. When calculating a PHG, OEHHA uses all the information it has compiled to identify the level of the chemical in drinking water that would not cause significant adverse health effects in people who drink that water every day for 70 years. OEHHA assumes that an adult will drink two liters of water per day and a child will drink one liter per day. OEHHA must also consider any evidence of immediate and severe health effects when setting the PHG. Water Quality Data Considered All of the water quality data collected by the District in the years 2010, 2011, and 2012 for purposes of determining compliance with drinking water standards were considered. This data was also summarizedAinAtheADistrict’sAlatest 2013 Annual Water Quality Report, also known as Consumer Confidence Report availableAonAtheADistrict’sAwebsite. Guidelines Followed The Association of California Water Agencies (ACWA) formed a workgroup which prepared guidelines for water utilities to use in preparing these newly required reports. The ACWA guidelines were used in preparation of this report. No guidance was available from state regulatory agencies. 2013 Public Health Goals Report 5 July 2013 Best Available Treatment Technologies and Cost Estimates Both the USEPA and CDPH adopted what are known as Best Available Technologies (BATs). BATs are the best known methods of reducing contaminant levels to below MCL. Costs can be estimated for such technologies. However, since many PHGs and all MCLGs are set much lower than the MCL, it is not always possible or feasible to determine what treatment is needed to further reduce a constituent downward to or near the PHG or MCLG, many of which are set at zero. Estimating costs to reduce a constituent to zero is difficult, if not impossible, to verify by analytical means that the level has been lowered to zero. Additionally, in some cases, installing treatment to try and further reduce very low levels of one constituent may have adverse effects on other aspects of water quality. Constituents Detected That Exceed a PHG or MCLG The following is a discussion ofAtheAconstituentsAthatAwereAdetectedAinAtheADistrict’sA drinking water sources and water distributions system above the PHG, or if no PHG, above the MCLG. Total Coliform Bacteria Total coliform (TC) bacteria are indicator organisms that indicate a potent ial microbial water quality problem that requires confirmation follow-up sampling, testing, and investigation. When the District receives a positive TC result from the contract laboratory, a repeat sample set is immediately taken for a retest. In addition, the disinfection procedures are reviewed and the sample collection site and the adjacent section of the water distribution system are analyzed. The MCLG for total coliform (TC) bacteria is zero percent (0%) of samples with presence of coliform per month. The MCL for TC is not to exceed five percent (5%) of positive or coliform-presence samples per month. During the years 2010, 2011, 2012, combined staff and an independent certified testing laboratory collected and analyzed from the District’s water distribution system an average of 160 TC samples each month, for a total of 5778 samples over the last three years. From these 5778 samples, there were 6 which tested positive for TC. This equates to a 3- year average monthly percentage of TC positive samples of 0.1%, which exceeds the MCLG of zero percent (0%). Factors that can produce positive TC test besides degraded water quality include, but are not limited to, the weather and environmental conditions when samples are taken, and the human factor associated with the collection methods, handling, and test procedures. 2013 Public Health Goals Report 6 July 2013 Numerical Health Risks Because total coliform is only a surrogate indicator of the potential presence of pathogens, it is not possible to state a specific numerical public health risk. While USEPA normallyAsetsAMCLGsA“atAaAlevelAwhereAnoAknownAorAanticipatedAadverseAeffectsAonA personsAwouldAoccur”,AtheyAindicateAthatAtheyAcannotAdoAsoA with coliforms. Category of Risk to Public Health The California Department of Public Health has determined that the presence of TC bacteria is a possible health concern. TCs are common in the environment and are generally not harmful themselves. State of California Health and Safety Code Section 64470(a)Astates.A“TheApresenceAofAtheseAbacteriaAinAdrinkingAwater,Ahowever,AgenerallyAisA a result of a problem with water treatment or the pipes which distribute the water, and indicates that the water may be contaminated with organisms that can cause disease. Disease symptoms may include diarrhea, cramps, nausea, and possibly jaundice, and any associated headaches and fatigue. These symptoms, however are not just associated with disease causing organisms in drinking water, but may also be caused by aAnumberAofAfactorsAotherAthanAyourAdrinkingAwater:” Best Available Technology to Remove or Reduce the Presence of Total Coliform The addition of disinfectants to the drinking water is the best available technology to eliminate or reduce the presence of TC. The District disinfects with and monitors chlorine levels at our sources and water system to assure that the water served is microbiologically safe. The chlorine residual levels are carefully controlled to provide the best health protection without causing the water to have undesirable taste and odor or increasing the disinfection by-product level. This careful balance of treatment processes is essential to continue supplying our customers with safe drinking water. In addition, the District also has an effective cross-connection program, maintains positive pipeline pressures, and, conducts a regular flushing program for water distribution system dead-end mains. The District has already taken necessary steps associated with best management practices and the best available technology for the prevention and control of TC in our water distribution system. Cost to Reduce the Level of Total Coliform to a Level at or below the MCLG Since we are applying a disinfectant and conducting a thorough effort to eliminate and prevent the presence of TC, it is not prudent to initiate additional treatment as proper disinfection and frequent flushing programs have proven to be effective methods in destroying possible TC contamination, therefore no estimate of cost has been included. 2013 Public Health Goals Report 7 July 2013 Copper TheADistrict’sAwellAwaterAandAimportAwaterAsourcesAdoAnotAcont ain copper. Copper found insideAhomesAisAaAchemicalAreactionAofAtheADistrict’sAwaterAwithAhouseholdAplumbingA fixtures containing copper and brass. There is no Maximum Contaminant Level for copper. United States Environmental Protection Agency and the California Department of Public Health Notification Level for copper is 1.3 milligrams per liter. The notification level for copper is measured at the 90th percentileAofAallAsamplesAtakenAfromAplumbingAfixturesAinsideAtheAcustomer’sAhome: Lead and Copper tests are conducted once every 3 years as required by CDPH. The California Office of Environmental Health Hazard Assessment has established a Public Health Goal of 0.17 milligrams per liter. The District’s 90th percentile of all samples taken from inside theAcustomers’AhousesAinA2012 sampling for copper is 0.48 milligrams per liter. Category of Risk to Public Health The Office of Environmental Health Hazard Assessment and the Department of Health Services have determined the following risk for copper: “BasedAonAhumanAdata,AtheAhealthAriskAcategoryAforAcopperAisAacuteAtoxicity:AA Acute toxicity is adverse health effects that develop after a short -term exposure to copper. Short term exposure to high levels of copper can temporarily cause problemsAinAtheAgastrointestinalAsystem:”A Numerical Health Risks The Office of Environmental Health Hazard Assessment has determined that, in the case of copper, there is no numerical public health risk associated with the Public Health Goal. Numerical public health risks are not calculated for chemicals considered non- cancer causing. Best Available Technology Both the U.S. Environmental Protection Agency and California Department of Public Health adopt what are known as Best Available Technologies which are the best-known methods of reducing contaminant levels to the Maximum Contaminant Level. Since many of the Public Health Goals and Maximum Contaminant Level Goals are set much lower than the Maximum Contaminant Level, it is not always possible or feasible to determine what treatment is needed to further reduce a substance to or near the Public Health Goal or Maximum Contaminant Level Goal. 2013 Public Health Goals Report 8 July 2013 Similar to lead, optimizing corrosion control is the best available technology to reduce the level of copper in drinking water. This is achieved through effectively adjusting and maintaining alkalinity, pH, and calcium hardness, and the addition of phosphate or silica - based corrosion inhibitors, or a combination of all. Optimizing corrosion control also includes an intensive process of collection and analyses of water quality data to determine the effectiveness of corrosion control. Arsenic Arsenic is a naturally occurring element in the earth's crust and is very widely distributed in the environment. All humans are exposed to small quantities of arsenic (inorganic and organic) largely from food and to a lesser degree from drinking water and air. Some edible seafood may contain higher concentrations of arsenic which is predominantly in less acutely toxic organic forms. YLWD’sAWellANo:A15Aslightly exceeds the 10 parts per billion (ppb) arsenic primary drinkingAwaterAstandard,AtheAMCL:AACurrently,AWellANo:A15’sA3-year average arsenic level is approximately 11.90 ppb. Other District wells have an average 1.84 ppb arsenic level. Whenever in operation, staff blends Well 15 water with other District wells in compliance with State Health approved blending plan. Blended well water served to our customer has an arsenic level of about 3.46 ppb, which is well below the current not-to- exceed level of 10 ppb arsenic MCL. The California Office of Environmental Health Hazard Assessment has established a Public Health Goal of 0.004 micrograms per liter or parts per billion (ppb). Category of Risk to Public Health The Office of Environmental Health Hazard Assessment has determined arsenic as a carcinogen. Numerical Health Risks The Office of Environmental Health Hazard Assessment has a numerical cancer risk of 1 x 10-6 for the 0.004 ppb PHG, and 1 in four hundred for the EPA Maximum Contaminant Level of 10 ppb. Note that, as previously described, cancer risk is stated in terms of excess cancer per million (or fewer) population. The value of 1 x 10-6 means 1 excess cancer case per 1,000,000 people. (1 excess case means 1 person will get cancer than if the population had not been exposed to the chemical.) Best Available Technology to Remove or Reduce the Concentration of Arsenic and Approximate Treatment Cost 2013 Public Health Goals Report 9 July 2013 Activated alumina, ion exchange, reverse osmosis, lime softening, coagulation/filtration are the water treatment technologies available for achieving compliance with the MCL for arsenic. It would cost the District approximately $11.7 million dollars in capital cost excluding annual operation and maintenance costs to reduce the arsenic levels of all its well water to the PHG level of 0.004 ppb.* * based on Golden State Water Co., Granular Ferric Oxide Resin, Arsenic removal, 600 gpm, 2 facilities, built in 2006 adjusted for 2013 dollars with estimated 3.5% annual inflation. Uranium Naturally occurring uranium is found in groundwater supplies as a result of leaching from uranium-bearing sandstone, shale, and other rock formations. Uranium may also be present in surface water, carried through runoff from areas with mining operations. The Public Health Goal for uranium is 0.43 pico-Curies per liter (pCi/L), and the Maximum Contaminant Level (MCL) is 20 pCi/L. The District’s average uranium level is 7.90 pCi/L. The levels detected were below MCL at all times. Category of Risk to Public Health The Office of Environmental Health Hazard Assessment has determined uranium as a carcinogen. Numerical Health Risks The Office of Environmental Health Hazard Assessment has a numerical cancer risk of 1 x 10-6 for the 0.43 pCi/L PHG, and a cancer risk of 5 x 10-5 for the California Department of Health Maximum Contaminant Level of 20 pCi/L. As previously described, 1 x 10-6 means 1 excess cancer case per 1,000,000 people; 5 x 10-5 means 5 excess cancer cases per 100,000 people. (1and 5 excess cases mean 1 and 5 persons respectively will get cancer than if the population had not been exposed to the chemical.) Best Available Technology to Remove or Reduce the Concentration of Uranium and Approximate Treatment Cost Ion exchange, reverse osmosis, lime softening, coagulation/filtration are the technologies available for achieving compliance with the MCL for uran ium. Using reverse osmosis, it would cost the District about $48 million dollars in annualized capital, and operation and maintenance cost to achieve the PHG level**. 2013 Public Health Goals Report 10 July 2013 ** based on CH2M Hill Study, for a 1.0 mgd plant operated at 40% design capacity, October 1991 adjusted for 2013 dollars with estimated 3.5% annual inflation. Gross Alpha Radionuclides such as alpha in water supplies are from erosion of natural deposits. The term radionuclide refers to naturally occurring elemental radium, radon, uranium, and thorium with unstable atomic nuclei that spontaneously decay producing ionizing radiation. Gross alpha is defined as the sum total of these radionuclides. Exposure to ionizing radiation in concentrations exceeding the maximum contaminant level may have carcinogenic (cancer causing), mutagenic (causing mutation of cells) or terat ogenic (causing abnormalities in offspring) effects. TheAEP ’sAMaximum Contaminant Level Goal (MCLG) for gross alpha particle is 0 and the California Maximum Contaminant Level (MCL) is 15 pCi/L. The District’s average level of gross alpha is 8.44 pCi/L. The levels detected were below MCL at all times. Category of Risk to Public Health Health risk category based on experimental animal testing data evaluated in the U.S. EPA MCLG document and California MCL has determined gross alpha particle as a carcinogen. Numerical Health Risks The USEP ’sAMCLGAfor Gross Alpha is zero (0) and a cancer risk of 1 x 10-3 for the California Department of Public Health Maximum Contaminant Level of 15 pCi/L. NOTE: Cancer Risk is defined as the theoretical 70-year lifetime excess cancer risk at a statistical confidence limit. Actual cancer risk may be lower or zero. Cancer risk is stated in terms of excess cancer per million (or fewer) population. The value of 1 x 10-3 means 1 excess cancer case per 1,000 people. (1 excess case means 1 more person will get cancer than if the population had not been exposed to the chemical.) Best Available Technology to Remove or Reduce the Concentration of Gross Alpha Particles and Approximate Treatment Cost Similar to uranium, reverse osmosis, lime softening, and coagulation/filtration are the water treatment technologies available for achieving compliance with the MCLG for gross alpha. Removal and reduction could be achieved concurrently with uranium. 2013 Public Health Goals Report 11 July 2013 Yorba Linda Water District meets 100% of all enforceable drinking water standards from the California Department of Public Health and the United State Environmental Protection Agency. Conclusion: Drinking water provided by the Yorba Linda Water District meets 100% of all enforceable State of California, Department of Public Health, and United States Environmental Protection Agency primary drinking water standards. The District also meets 96% of all the California Public Health Goals and 91% of the Federal Maximum Contaminant Level Goals. Public Health Goal levels are not enforceable water quality standards, and no action to meet them is mandated. For total coliform bacteria, the staff does not recommend further action. The District has already taken all steps associated with the best available technology and multi - barrier approach for control and occurrence prevention of total coliform bacteria including an effective cross-connection program, maintenance and monitoring of proper disinfectant levels, regular water quality monitoring of wells and reservoirs, source water protection, and maintenance of positive pipeline pressures throughout the distribution system. For copper, the District already has optimized corrosion control, and the District’sAwater has been found to be non-corrosive. Staff does not recommend undertaking additional corrosion control efforts. It is not recommended for two reasons: 1) the United States Environmental Protection Agency and California Department of Public HealthAclassifiedAtheADistrict’sA system as having optimized corrosion control, and 2) adding chemicals for more corrosion control will cause other water quality problems. These could reduce the effectiveness of the current disinfection process which could increase the presence of total coliforms. In addition, contributing factors such as type and age of plumbing and plumbing fixtures, point-of-use and point-of-entry water treatment devices, and electro- chemical-induced pipe corrosionAcouldAchangeAtheAwaterAchemistryAinAcustomers’Ataps, thus increasing water copper content. For arsenic, the California Department of Public Health approved theADistrict’s blending plan and performance requirements are being met to keep the level of arsenic below the enforceable standard. Providing additional treatment for 100% removal to meet the PHG would be cost-prohibitive. 2013 Public Health Goals Report 12 July 2013 For uranium and gross alpha particle, current methods of removal and disposal technologies do not provide complete reduction to meet the level of the public health goals at this time. In the future, if available removal technology can be achieved, the District will explore and conduct the necessary studies and related costs to implement. In summary, the drinking water served by the Yorba Linda Water District meets all Federal and State drinking water standards set to protect public health. To further reduce the levels of constituents identified in this report that are already significantly below the health-based Maximum Contaminant Levels would require significant financial investment. The effectiveness of the treatment processes to provide any significant reduction in constituent levels at already low values is uncertain. The health protection benefits of these hypothetical reductions are not clear and may not be quantifiable. Furthermore, the funds that would be required for the additional treatment, approximately $60 million, might provide greater public health protection benefits to the District’sAcustomers if spent on improving other water system operation, surveillance, and monitoring programs. 2013 Public Health Goals Report 13 July 2013 APPENDICES 2013 Public Health Goals Report 14 July 2013 Appendix 1 State of California Public Health Goals (PHGs) Comparison with YLWD Water Quality (Units are in milligrams per liter (mg/L), unless otherwise noted) Constituent MCL State PHG or MCLG YLWD Test Results Imported Water Results Organic Chemicals – 22 CCR § 64444 Alachlor 0.002 0.004 ND ND Atrazine 0.001 0.00015 ND ND Bentazon 0.018 0.2 ND ND Benzene 0.001 0.00015 ND ND Benzo (a) pyrene 0.0002 0.000007 ND ND Carbofuran 0.018 0.0017 ND ND Carbon Tetrachloride 0.0005 0.0001 ND ND Chlordane 0.0001 0.00003 ND ND Chloro-ethylene (Vinyl Chloride) 0.0005 0.00005 ND ND Cis-1,2-Dichloroethylene 0.006 0.1 ND ND 2,4-Dichlorophenoxyacetic acid (2,4-D) 0.07 0.07 ND ND Dalapon 0.2 0.79 ND ND Dibromochloropropane (DBCP) 0.0002 0.000007 ND ND 1,2-Dichlorobenzene (ortho) 0.6 0.6 ND ND 1,4-Dichlorobenzene (Para) 0.005 0.006 ND ND 1,1-Dichloroethane (1,1-DCA) 0.005 0.003 ND ND 1,2-Dichloroethane (1,2-DCA) 0.0005 0.0004 ND ND 1,1-Dichloroethene (1,1-DCE) 0.006 0.01 ND ND 2013 Public Health Goals Report 15 July 2013 Constituent MCL State PHG or MCLG YLWD Test Results Imported Water Results Dichloromethane 0.005 0.004 ND ND 1,2-Dichloropropane 0.005 0.0005 ND ND 1,3-Dichloropropene 0.0005 0.0002 ND ND Di (2-ethylhexyl) adipate 0.4 0.2 ND ND Di (2-ethylhexyl) pthalate (DEHP) 0.004 0.012 ND ND Dinoseb 0.007 0.014 ND ND Diquat 0.02 0.015 ND ND Endothall 0.1 0.58 ND ND Endrin 0.002 0.0018 ND ND Ethylbenzene 0.3 0.3 ND ND Ethylbenzene Dibromide (EDB) 0.00005 0.00001 ND ND Glyphosate 0.7 1 ND ND Heptachlor 0.00001 0.000008 ND ND Heptachlor Epoxide 0.00001 0.000006 ND ND Hexachlorobenzene 0.001 0.00003 ND ND Hexachlorocyclopentadiene 0.05 0.05 ND ND Lindane 0.0002 0.000032 ND ND Methoxychlor 0.03 0.03 ND ND Methyl Tertiary Butyl Ether (MTBE) 0.013 0.013 ND ND Monochlorobenzene 0.07 0.2 ND ND Oxamyl 0.05 0.05 ND ND Pentachlorophenol (PCP) 0.001 0.0004 ND ND 2013 Public Health Goals Report 16 July 2013 Constituent MCL State PHG or MCLG YLWD Test Results Imported Water Results Picloram 0.5 0.5 ND3 ND Silvex (2,4,5-TP) 0.05 0.025 ND ND Simazine 0.004 0.004 ND ND 1,1,2,2-Tetrachloroethane 0.001 0.0001 ND ND Tetrachloroethylene (PCE) 0.005 0.0006 ND ND Thiobencarb 0.07 0.07 ND ND Toluene 0.15 0.15 ND ND Toxaphene 0.003 0.00003 ND ND Trans-1,2-Dichloroethylene 0.01 0.06 ND ND 1,2,4-Trichlorobenzene 0.005 0.005 ND ND 1,1,1-Trichloroethane (1,1,1-TCA) 0.2 1.0 ND ND 1,1,2-Trichloroethane (1,1,2-TCA) 0.005 0.0003 ND ND Trichloroethylene (TCE) 0.005 0.0008 ND ND Trichlorofluoromethane (Freon 11) 0.15 0.7 ND ND Trichlorotrifluoroethane (Freon 113) 1.2 4 ND ND Xylenes (sum of isomers) 1.75 1.8 ND ND Inorganic Chemicals – 22 CCR § 64431 Aluminum 1 0.60 0.004 ND Antimony 0.006 0.02 ND ND Arsenic 0.01 0.000004 0.0034 .0015 Barium 1 2 ND ND Beryllium 0.004 0.0001 ND ND 2013 Public Health Goals Report 17 July 2013 Constituent MCL State PHG or MCLG YLWD Test Results Imported Water Results Cadmium 0.005 0.00004 ND ND Copper (customer’s tap: 90th percentile)5 1.3 0.17 0.48 ND Cyanide 0.15 0.15 ND ND Fluoride 1.4 to 2.4 1 0.4 0.15 Lead (at-the-tap: 90th percentile) 0.015 0.002 ND ND Mercury 0.002 0.0012 ND ND Nickel 0.1 0.012 ND ND Nitrate as Nitrate 45 45 14 2 Nitrite as Nitrogen 1 1 ND ND Thallium 0.002 0.0001 ND ND Radiological Chemicals – 22 CCR § 64441 and 64443 Uranium6 20 0.43 7.90 2.43 Abbreviations: 1. MCL – Maximum Contaminant Level 2. MCLG – Maximum Contaminant Level Goal 3. ND – Not Detected 4. YLWD – Yorba Linda Water District (Groundwater Source) Notes: 1. PHG – Public Health Goals, established by the California Office of Environmental Health Hazard Assessment. PHGs are the estimated levels of substances in drinking water that pose no significant health risks to individuals including the most sensitive sub-populations, consuming 2 liters of water daily over a period of 70 years. 2. MCLs are enforceable standards established by the California Department of Public Health and the U.S. Environmental Protection Agency. For lead and copper, Notification Levels are listed. 3. Data shown in Orange indicates exceeding PHG levels, but is well below the health-based MCLs. 4. mg/L – milligrams per liter (equivalent to parts per million) 5. 90th percentile – the lead or copper level at the 90th percent of all samples collected and arranged in an increasing order in accordance with the guidelines established by the Federal and State Lead and Copper Rule. These samples were collected inside at homeowner’sAtaps: 6. All units pCi/L, Pico Curies per Liter (0.9 pCi = 1 microgram) 2013 Public Health Goals Report 18 July 2013 Appendix 2 Federal Maximum Contaminant Level Goals (MCLGs) Comparison with YLWD Water Quality (Units are in milligrams per liter (mg/L), unless otherwise noted Constituent MCL State PHG or MCLG YLWD Test Results Imported Water Results Organic Chemicals Acrylamide TT9 0 ND ND Bromate 0.01 0 ND ND Chlorite 1 0.8 ND ND Dioxin (2,3,7,8 – TCDD) 3 x 10-8 0 ND ND Epichlorohydrin TT9 0 ND ND Molinate 0.02 NS ND ND Polychlorinated Biphenyls (PCBs) 0.0005 0 ND ND Styrene 0.1 0.1 ND ND Trihalomethanes, Total (TTHMs) 0.100 NS 0.054 0.054 Inorganic Chemicals Asbestos, in fibers / liter 7 million 7 million waived by CDPH7 Not Required Chromium (Total) 0.05 withdrawn ND ND Selenium 0.05 0.05 ND ND Microbiological Coliform (% positive samples/month) 5% zero 0.1%8 0.06% Cryptosporidium TT9 zero NR ND 2013 Public Health Goals Report 19 July 2013 Constituent MCL State PHG or MCLG YLWD Test Results Imported Water Results Giardia Lamblia TT9 zero NR ND Legionella TT9 zero NR NA Viruses TT9 zero NR ND Radiological11 Alpha Activity, Gross 15 010 8.44 3.00 Beta Activity, Gross 50 NS NR 4.13 Radium 226 & 228, Total 5 010 ND ND Strontium 90 8 NS NR ND Tritium 20,000 NS NR ND Abbreviations: 1. MCL – Maximum Contaminant Level 2. MCLG – Maximum Contaminant Level Goal 3. ND – Not Detected 4. YLWD – Yorba Linda Water District (Groundwater Source) 5. CDPH – California Department of Public Health Notes: 1. MCLGs – Maximum Contaminant Level Goals are estimates of levels of contaminants in drinking water, below which there are no known or expected health risks. These levels are set by the United States Environmental Protection Agency 2. Maximum Contaminant Levels are enforceable standards established by the California Department of Public Health and the U.S. Environmental Protection Agency 3. Data shown in Orange indicates exceeding PHG levels, but is well below the health-based MCLs. 4. mg/L – milligrams per liter (equivalent to parts per million) 5. NS – Not Set 6. NR – Not Required 7. Monitoring is waived by California Department of Public Health, because District water sources are not susceptible to asbestos contamination. 8. District’s highest monthly percentage of coliform positive in the water distribution samples from 2010-2012 9. TT – Treatment Techniques are the water treatment processes and methods required by the California Department of Public Health and Environmental Protection Agency under the Surface Water Treatment Rule in lieu of establishing a Maximum Contaminant Level. The processes and methods are intended to reduce and/or eliminate the contaminants in drinking water. 10. Effective 12/08/03 11. All units pCi/L, Pico Curies per Liter (0.9 pCi = 1 microgram) ITEM NO. 8.3 AGENDA REPORT Meeting Date: May 23, 2013 To:Board of Directors Cost Estimate:$130,000 From:Steve Conklin, Acting General Manager Presented By:Gina Knight, HR/Risk Manager Dept:Human Resources/Risk Management Prepared By:Gina Knight, HR/Risk Manager Subject:Approval for Full-Time Safety and Training Coordinator Position SUMMARY: At the April 18 Budget Workshop, the Board asked staff to further investigate the cost and benefit of the proposed Safety and Training Coordinator position, and to bring its findings back through the Personnel-Risk Management Committee for further consideration. STAFF RECOMMENDATION: That the Board of Directors approve a full-time Safety and Training Coordinator position for FY 2013/14. COMMITTEE RECOMMENDATION: The Personnel-Risk Management Committee considered this item at its meeting on May 8, 2013 and supports the staff recommendation. DISCUSSION: Since 2006, ACWA-JPIA has recommended that the District budget for a full-time Safety Compliance position. Although the District currently manages and reacts to keep existing programs up to date, a dedicated Safety position would allow the District to work pro-actively and develop a uniform safety culture throughout the District. At present, the District has a professional services agreement with the Aspen Risk Management Group for safety consultant services. The Safety Consultant works two days per month. The time is spent developing policies/procedures and assessing our most pressing safety concerns. The District's culture requires an in-house person who will be perceived as a team player not an outsider. This individual will have the responsibility and authority to make safety culture changes and enforce safety policies. The role of the Safety and Training Coordinator will be to break through any existing barriers to create an outstanding safety culture. No outside consultant will take on the liability nor be perceived by District staff as accepting the overall responsibility of safety that an on- staff person would have. A consultant can only advise the District on what tasks should be completed/conducted to provide a safer work environment and to be in compliance with state and federal rules and regulations. The following is a list of what is expected from a full-time safety position: Build positive relationships with employees towards safety; Implement programs and policies proactively versus reactively; Provide in-house training/re-training for specific safety needs; Continuously update and manage programs; Conduct audits to assure compliance; Administer the District's Emergency Preparedness Plan Perform incident investigations to determine cause and corrective actions; Perform facility inspections; Monitor subcontractor performance; Develop training courses; Conduct toolbox meetings; Work with WEROC on emergency response; Coordinate and conduct District emergency preparedness drills; Coordinate with other agencies to develop mutual aid; Act as the safety officer as part of the Incident Command System. Originally this position was proposed to be budgeted for six months, with the anticipation that it would be filled in January 2014. In addition, it was previously proposed that the Budget would include funding for six months of continued Safety Consultant Services from the Aspen Group (July 2013 through December 2013 at a cost of $40,000). Under this scenario, the total for both the Safety position and Safety Consultant services would equal $105,000. The PRS Committee considered the above and noted that for an additional $25,000, the District could have a full-time Safety position budgeted for twelve months at a cost of $130,000. The District would benefit from having a full-time person at work every day in comparison to the Consultant that would be at the District two days per month. This proposal includes deleting the six-months of Safety Consulting Services. Attached is a copy of the proposed Safety and Training Coordinator job description. ATTACHMENTS: Name:Description:Type: Safety_and_Trainig_Coordinator_5-2013-final.doc Safety and Training Coordinator Position Backup Material Approved by the Board of Directors of the Yorba Linda Water District 5/23/2013 RC/MB 4-1 PH voted No. YORBA LINDA WATER DISTRICT Revised: May 2013 SAFETY AND TRAINING COORDINATOR (At-Will Exempt) DEFINITION Under direction of the Human Resources Manager, performs a variety of professional level duties involved in the development, implementation and coordination safety and training programs, safety/environment management and emergency management programs, coordinates loss prevention duties including identifying, evaluating, controlling, and minimizing potential hazards and injuries to District employees and property; administer and coordinate the District’s Injury and Illness Prevention Program, Hazardous Substance Management and Emergency Response Programs. CLASS CHARACTERISTICS This class is distinguished from other classes in the Human Resources job family by the incumbent’s specialization in occupational health and safety and related risk management functions. This position is responsible for District Safety Programs in compliance with federal and state laws and regulations and in a manner consistent with current environmental, safety and health regulations and best practices. The incumbent in this classification is expected to manage, coordinate, supervise and develop major and complex safety and environmental programs on a District wide basis; coordinate the overall safety programs for various departments with diverse operations. EXAMPLES OF DUTIES The duties listed below are illustrative only and are not meant to be a complete and exhaustive listing of all of the duties and responsibilities of this classification. • Researches, develops and implements safety programs in areas such as accident investigation and prevention, motor vehicle safety, confined space, hearing conservation, emergency action plans hazard communications, ergonomics, environmental recycling and control of various Occupational Safety and Health Administration (OSHA) and Department of Environmental Quality (DEQ) mandated programs. • Develops policies, writes procedures and disseminates information. Departmental level safety programs are coordinated with the input from the Human Resources Manager and General Manager. Safety and Training Coordinator Page 2 • Develops resources and presents a variety of safety /environmental training programs. Makes arrangements for outside instructors as needed or media and maintains a multi-media safety, training and environmental compliance library. • Evaluates employee accident and injury reports, recommends remedial action and follows up to ensure action is taken; responds to employee and manager questions regarding safe work practices and environmental hazards. • Collects and maintains appropriate accident and injury statistics, regulatory documentation, records and other data desirable by District management. Maintains training attendance records. Develops and presents reports as needed. • Performs facility, work site and equipment inspections; required accident or incident investigations; awareness campaigns; work site interviews and regulatory discussions; data analysis to identify trends; performs research and designs specific training or other corrective action plans. • Works with supervisors and managers on safety issues and employee request for assistance on a variety of safety and risk/accident prevention concerns. Independently conducts difficult inspections or audits and reviews all final reports or corrective actions before implementation. • Designs and coordinates newsletters, safety communications and periodic special events, activities and awareness campaigns. Administers, coordinates and conducts safety and health committee meetings. • Manages the District’s Federal Highway Administration (FHWA) Drug and Alcohol Testing compliance program; coordinate with DMV Pull Notice program and administers the DL-170 Commercial Driver’s Licensing Program and instruct staff on defensive driving procedures. • Prepares and implements budget for safety related equipment issues; advises on the development of specifications for the purchase of safety and safety- related equipment. • Plans, develops and coordinates responses to multi-hazard emergency or disaster conditions involving earthquakes, hazardous materials, flooding, reservoir and high pressure pipeline failures. • Coordinates with other agencies to develop mutual aid and emergency response procedures. • Researches, analyzes and develops District emergency response procedures and hands on drills. Safety and Training Coordinator Page 3 • Serves as liaison with government regulators conducting audits of District facilities. QUALIFICATIONS The level and scope of the knowledge and skills listed below are related to experience, proficiency and complexity of work activities as specified under Class Characteristics. Knowledge Of: • Principles, policies, practices and methods for developing and administering an employee health and safety program. • Federal and State safety regulations such as OSHA and related requirements. • Adult learning training methods and ability to develop and present effective employee training programs and materials. • Statistical and trend analysis. • Computer applications, such as MS word, EXCEL, and related software pertaining to safety training and environmental compliance. • Methods and practices for conducting accident and work place safety audits and investigations. Abilities: • Ability to analyze, evaluate, organize and draw conclusions from statistical data. • Assess and evaluate most workplace situations and hazards and recommend appropriate corrective measures or strategies. • Conduct effective employee training programs. • Uses a personal computer and standard word processing and spreadsheet related software (i.e. Word, Excel, Access, PowerPoint, and/or related packages). • Communicate effectively, verbally and in writing; prepares clear and concise investigative reports and other materials. • Establishes and maintains effective working relationships with those contacted in the course of work. Safety and Training Coordinator Page 4 • Respond to emergency and problem circumstances in a calm, organized, effective manner, dealing as necessary with conflict, to arrive at an effective course of action. • Ensure compliance with appropriate safety practices and regulations. Essential Functions of Job • Must be able to communicate effectively, both verbally and in writing. • Regularly uses a telephone for communication. • Uses office equipment such as computer terminals, copiers, and fax machines. • Sits for extended time periods up to 8 hours per day as needed. • Regularly required to stoop, stand, bend, sit and walk and go up and down stairs. • Ability to occasionally lift 15-40 pounds when conducting field investigations and safety audits. Desirable Qualifications: A combination of formal education and field safety responsibilities is preferred such as: Education: Equivalent to graduation from a two year college with major coursework in Occupational Safety, Industrial Hygiene, Environmental Science or a closely related field. An advanced degree is desirable. Experience: At least five (5) years of progressively responsible experience in developing or administering employee health and safety programs for similar organizations or government entities. Other Requirements: Driver’s License: Possession of a valid California Class C driver’s license is desired at the time of appointment. Failure to obtain or maintain such required license(s) may be cause for disciplinary action. Individuals who do not meet this requirement due to a physical disability will be considered for accommodation on a case-by-case basis. Possession and proof of a good driving record as evidenced by freedom from multiple or serious traffic violations or accidents for at least two (2) years duration. Certification: The following certificates are desired but not required: Safety and Training Coordinator Page 5 • Certification by the Department of Labor as an outreach trainer on Fed OSHA standards for construction and general industries. • Certified Safety Professional (CSP) or Certified Industrial Hygienist (CIH) and/or Certification Occupational Health and Safety Technician (OHST). • Hazwoper Emergency Response Certificate • COSS – Certified Occupational Safety Specialist • Competent Person Certificate – Trenching/Shoring Approved by the following: __________________________________________ Department Manager Date . __________________________________________ Human Resources Manager Date ITEM NO. 9.1 AGENDA REPORT Meeting Date: May 23, 2013 Total Budget:$39.8 M To:Board of Directors Funding Source:All Funds From:Steve Conklin, Acting General Manager Presented By:Stephen Parker, Finance Manager Dept:Finance Prepared By:Stephen Parker, Finance Manager Subject:Proposed Budget for FY 2013/14 SUMMARY: Attached for the Board's review and consideration is the District's Budget for FY 2013/14. The Budget allocates employee and financial resources to accomplish the District's mission and vision statements. It presents a framework and financial plan for responsibly carrying out the programs and capital projects that administer, operate, maintain, protect, and replace the assets required to provide a safe and reliable public water and sewer system. DISCUSSION: The Letter of Transmittal provides an overall summary of the FY 2013/14 Budget. In general, this budget identifies $39.8 million in total outlay this next fiscal year, including $27.8 million in total expenses, $6.9 million in depreciation and $5.1 million for capital projects. Offsetting the $27.8 million in total expenses is $31.8 million in anticipated revenue, resulting in a gain of $4.0 million. This anticipated revenue includes a pass-through increase in variable water costs as well as the second year of a three-year rate increase on the monthly meter charge. The Board remains consistent in its decision to not fully fund depreciation expense and the budget reflects this decision. Therefore, the District will operate with a planned net deficit of $2.9 million, despite the budgeted gain of $2.5 million in revenue versus operating expenses for FY 2012/13. On an cash basis, the District's operating budget will fully fund the Financial Reserves Policy annual funding recommendations, with $2.1 million being generated towards reserves in the Water Fund, and $500,000 being generated in the Sewer Fund. Attached to this report is the draft Budget for FY 2013/14, for discussion, review and Board comments prior to consideration for adoption by the Board, which is scheduled on June 13, 2013. STRATEGIC PLAN: FR 1-B: Prepare a High Level Annual Budget Document and Comprehensive Annual Financial Report and Compete for Recognition by the Government Finance Officers Association PRIOR RELEVANT BOARD ACTION(S): Each standing committee reviewed the section of the budget that falls under that Committee's jurisdiction. The Board of Directors reviewed the preliminary budget summary for FY 2013/14 at a special workshop held on April 18, 2013. ATTACHMENTS: Name:Description:Type: FY_2013-14_Budget_Document-_Draft.pdf Backup Material Backup Material DRAFT Annual Operating Budget For the Fiscal Year Ending 2014 Yorba Linda Water District FY 2013/14 Budget Page 2 Page Intentionally Left Blank Yorba Linda Water District FY 2013/14 Budget Page 3 Table of Contents LETTER OF TRANSMITTAL 6 BUDGET OVERVIEW Resolution 12-14 Adopting FY 2013/14 Budget 14 GFOA Distinguished Budget Award FY 2012/13 15 Mission & Vision Statement 16 Core Values Statement 17 Strategic Goals Statement 18 Strategic Plan 19 Profile of the District 30 Board of Directors & Executive Staff 31 Organizational Chart 32 Personnel Trends by Position 33 Personnel Trends by Department 36 Financial Policies & Goals 37 Basis of Budgeting & Accounting 39 Budget Controls 39 Budget Process 41 Budget Calendar 42 Revenue Assumptions 43 Cost Allocation 47 Chart of Major Funds Structure 47 Rate History 48 Average Residential Monthly Bill by Year 49 Demographics 51 Ten Largest Customers Most Recent and Ten Years Ago 53 FINANCIAL SUMMARIES Total Revenue and Expenses (Water & Sewer) 55 Total Revenue and Expenses (Water) 57 Total Revenue and Expenses (Sewer) 59 Total Revenues by Fund 61 Total Expenses by Fund 62 Total Expenses by Category 63 Five Year Cost Comparison 63 Variable Water Cost Expenses 64 Reserves and Funding Sources 65 Five Year Financial Projections 67 Fund Balance History 73 Debt Administration 74 Employees per Capita 75 Residential Meter Charge Comparison 76 Yorba Linda Water District FY 2013/14 Budget Page 4 CAPITAL PROJECTS Capital Improvement Plan 79 Capital Projects Summary 81 Vehicle Equipment and Capital Outlay 85 DEPARTMENT SUMMARIES Board of Directors 89 Administration 95 Engineering 105 Finance 117 Human Resources 131 Information Technology 145 Operations 161 APPENDIX List of Acronyms 181 Glossary of Terms 184 Financial Policies 189  Operating Budget Policy 190  Revenues and Expenditures Policy 192  Financial Reserves Policy 194  Investment Policy 198 Yorba Linda Water District FY 2013/14 Budget Page 5 Letter of Transmittal Yorba Linda Water District FY 2013/14 Budget Page 6 To the Board of Directors: It is my pleasure to submit the Yorba Linda Water District FY 2013/14 Draft Budget. The purpose of this document is to identify and allocate the resources needed to accomplish the District’s goals and objectives over the next fiscal year, and to present the financial health of the District in a clear and concise manner for the Board of Directors and the general public. The following are upcoming strategic plan goals, including highlights of achievements completed in FY 2012/13; a summary of the goals and objectives for FY 2013/14 and a financial forecast of the District heading into the next five fiscal years: FY 2011/13 Strategic Plan Goals In the latter part of Fiscal Year 2010/11, the District adopted a Strategic Plan that established a foundation to meet and adapt positively to a changing work environment. Priority objectives were identified and resources were allocated in the FY 2011/12 Adopted Budget to achieve many of these objectives on the short term and to begin working toward achieving the longer term objectives as well. Department specific goals and objectives were updated based on level of achievement during FY 2011/12 for an anticipated completion during FY 2012/13. However, at the beginning of FY 2012/13, the Board of Directors opted to continue to work toward a more progressive approach to public service, through the authorization of an Operations and Efficiency Study of the District. In part, because the direction and focus of the agency may change based on the results of the Study, the District has opted to extend the FY 11/13 Strategic Plan Goals for another fiscal year. The departmental goals and objectives are included in the Department Summaries section of this budget. The full list of goals, initiatives and strategies within the Strategic Plan can be found starting on page 18 of this document. The five goals that the District identified as the most critical objectives are as follows: Goal CP: Community Partnership Goal FR: Fiscal Responsibility Goal OE: Operational Efficiency Goal SR: Service Reliability Goal WE: Workforce Engagement FY 2012/13 Highlights & Accomplishments Capital Improvement & Replacement Projects Completed  Completed Construction of Yorba Linda Pipeline Project  Completed Construction of Pressure Regulating Stations Upgrade, Phase 1 Yorba Linda Water District FY 2013/14 Budget Page 7  Completed Hydraulic Model Calibration and Northeast Area Planning Study  Completed Construction of Green Crest Sewer Lift Station Upgrade  Completed Construction of Highland Booster Pump Station Projects in Planning, Design or Commencing Construction  Designed, Bid and Commenced Construction of Yorba Linda Booster Station Project  Commence Design of Fairmont Booster Pump Station Replacement Other District Activities & Accomplishments  Received Positive Auditors Letter for FY 2011/12  Received State and National Recognition for CAFR  Received State and National Recognition for FY 2012/13 Budget document  Executed Multi-Year Memorandum of Understanding (MOU)  Completed California Environmental Quality Act (CEQA) Process for OCWD Annexation  Complete the District’s Website Update  Implement Enhanced Public Affairs and Outreach Program FY 2012/13 Financial Forecast For the year ending June 30, 2013, staff is anticipating a combined loss of $1,874,673 for the water and sewer enterprises. These figures include total depreciation expenses (a non-cash expense) in the amount of $6,744,192. Please refer to the Summary of Total Revenue and Expenses (Water & Sewer) for supporting information (pg. 55). Beginning July 1, 2012, the total reserve funds available for both operations and capital projects was $21.7 million. Staff is forecasting these funds to be $16.2 million by June 30, 2013, for a total reduction of $5.5 million for FY 2012/13. Please see the Reserves and Funding Sources table for supporting information (pg. 65). Principal Issues, Factors & Challenges for FY 2013/14 For the forthcoming 2013/14 fiscal year, a primary factor affecting an increase in the expenses of the District is the cost of water YLWD pays to the Municipal Water District of Orange County (MWDOC) for import water and assessments. MWDOC’s cost is primarily based on the cost of water they must pay to the Metropolitan Water District of Southern California (MWD). MWD adopted an average 5% rate increase, effective January 1, 2013. The actual increase will be 6.7% for full service treated import water, which is 96% of the water YLWD purchases from MWDOC. In addition, with an extended dry season lasting most of the year the District has sold more water than originally budgeted for FY 2012/13. This amounts to an increase in water sales revenue of $2.6 million. Over the past three fiscal years the District has averaged annual sales of 19,350 acre-feet, however, the District has budgeted for 20,000 acre-feet of water sales Yorba Linda Water District FY 2013/14 Budget Page 8 for FY 2013/14. The increased budget is based on the current year’s forecasted usage of 20,800. The District is also in the process of pursuing annexation of the remaining 26% of its service area into the Orange County Water District’s (OCWD) groundwater basin. With full annexation this would allow the District to pump the maximum groundwater allowable each year, at a lower cost than purchasing the same amount of import (MWD) water. Had the District been able to access the entirety of OCWD’s Basin Production Percentage (BPP) for the upcoming fiscal year, the District would lower its variable water costs by approximately $1 million. As variable water costs comprise 52% of the District’s operating expenses, ensuring these costs are held as low as possible is a top priority each fiscal year. The District also completed an advance refunding of the 2003 Certificates of Participation (COP) Bonds in the first quarter of FY 2012/13 . This will save the District $80,000 annually. As of July 1, 2012, the Board of Directors approved a three -year rate increase to customers on the Monthly Service Charge. The increase was on th e District’s overall revenue and consisted of 1.5% beginning on July 1, 2012. As of July 1, 2013 an additional 2.5% increase on the Monthly Service Charge will begin, with an anticipated 2.5% beginning on July 1, 2014. The increases will assist in covering the costs associated with operating, maintaining and replacing the District’s water system facilities. In conjunction with this rate increase, the Board of Directors approved a $7 million line of credit with a 3-year term and an interest rate based on 1 m onth LIBOR, and currently calculates to 1.14%. The line of credit will be used to allow the District to pursue future capital improvement projects with a minimal borrowing cost and a lowered financial burden to our customers. For FY 2013/14, the following goals and objectives have been established: FY 2013/14 Goals & Objectives Key Business Objectives  Continue pursuing OCWD Annexation  Continue to Implement, Evaluate and Update the Financial Reserves Policy  Continue Implementation of the Department-Wide Computerized Maintenance Management System (CMMS)  Assess Opportunities for Expanded Sewer Service Area  Update Current Job Descriptions (District-wide)  Identify Key Roles for Succession Customer Service and Public Outreach Improvements  Effectively Use Broad-Spectrum Communication Opportunities  Encourage Continued Employee Training in Leadership, Technology and Customer Service  Complete Operations & Efficiency Study Yorba Linda Water District FY 2013/14 Budget Page 9 Capital Improvement & Replacement Projects  Complete Construction of Yorba Linda Blvd. Booster Station Project  Complete Lakeview Grade Separation Project FY 2013/14 Summary Budget Revenues Total water and sewer revenues budgeted for upcoming FY 2013/14 amount to $30.0 million, an increase of $2.6 million from the revenues budgeted for FY 2012/13. The major differences are comprised of the following: Water Revenue ($2.6 million increase) Residential water revenue is expected to increase by $812,000 in FY 2013/14 due to an unusually dry spring and the anticipation of a dry and hot summer. Weather is typically the largest driver in residential water use as 60%-70% is used specifically in outdoor irrigation. Landscape and Irrigation water revenue, is expected to increase by $759,000 for FY 2013/14 because this revenue is generated from larger customers such as the City of Yorba Linda, the Placentia-Yorba Linda Unified School District and various homeowners associations, who are anticipated to continue maintaining landscaped community areas at a certain level in order to maintain their investme nt in this landscaping. This usage is typically driven by weather. Service Charges for all customers, which assist in covering the District’s fixed costs, are expected to increase by $714,000 for FY 2012/13 because the proposed rate increase is being place d on the service charge. Other operating revenue, for water, which is comprised of fluctuating income, such as various rebates and refunds is expected to increase by $95,000. Sewer Charge Revenue ($16,000 increase) Sewer Charge Revenue funds help to finance maintenance equipment, system repairs, replacements and improvements associated with the sewer system transfer. The funds will also be used for the near future to update and expand the District’s Asset Management Plan, Sewer master Plan, GIS and CMMS p rograms. This revenue is expected to remain relatively constant. Expenses & Outlay Total expenses & outlay (excluding capital project s) budgeted for upcoming FY 2013/14 is $35.0 million, a decrease of $127,000 from the FY 2012/13 budgeted results. This includes depreciation which totals $6.9 million. The following factors summarize the significant changes: Variable Water Costs ($815,000 increase) The District's variable water costs will increase in FY 2013/14 due to multiple factors including another increase in the water rate the District pays to MWDOC for imported Yorba Linda Water District FY 2013/14 Budget Page 10 water. MWDOC’s increase is primarily a pass through from an average 5% increase in MWD rates. In addition to the increase from MWD rates, the District is budgeting to sell 1,000 acre-feet more than was budgeted for FY 2012/13. While the FY 2012/13 budget was based on the previous three-year average usage of 19,000 acre-feet, FY 2012/13 has had the driest spring on record in the State of California, resulting in a total sale of 20,800 acre-feet. While the District assumes a larger usage for FY 2013/14 than the previous years’ average of 19,350 acre-feet, we are not calculating FY 2012/13 usage as the “new normal”. Salaries & Benefits ($256,000 increase) This amount includes merit increases and reclassifications for those employees who may qualify throughout the year, increases from CalPERS, medical, dental, and vision premiums, and the assumption that all funded positions will be filled for an entire fiscal year. The FY 2013/14 budget for salaries and benefits includes merit increases for those employees who qualify throughout the year, amounting to approximately $56,000. The Salaries & Benefits amount also includes the addition of half a new full-time employee, a new part-time employee and five proposed reclassifications of current employees. Salaries relating to CIP projects, in the amount of $100,000, will also be capitalized. The net operating costs for salaries and benefits results in a $256,000 increase from the FY 2012/13 budget. Currently, the District pays 100% of the premium cost for health, dental and vision for all full time employees and two-thirds of the premium cost for their dependents; participates in CalPERS (2% @ 55) for full time employees hired prior to January 26, 2012; offers employees a “4/10” work schedule; an optional 457 deferred compensation plan; a 125 Flex benefits plan; Long and Short Term Disability; Life Insurance; an Employee Assistance Program and Tuition Reimbursement (up to $5,250/year). As a result of the financial crisis of 2007-2010, the combined loss of nearly $67 billion in 2008 and 2009 in market value for the California Public Employees’ Retirement System (CalPERS), and the PERS Board voting to reduce the discount rate assumption from 7.75% to 7.5%, the employer’s share percentage has increased for FY 2013/14. In previous years, the District has paid the employees’ full 7% PERS retirement contribution. Full time employees already part of the CalPERS system hired after January 26, 2012 participate in CalPERS (2% @ 60) and pay their own 7% share of the PERS retirement contribution. Due to pension reform requirements, full time employees hired after January 1, 2013 who are new members participate in CalPERS (2% @ 62) and pay their own 6.25% share of the PERS retirement contribution. Beginning in FY 2012/13, the District signed a Letter of Compensation and Terms for Employment with all Management and Supervisory/Confidential employees that results in these employees paying their own portion of the 7% employee contribution towards PERS retirement by the third year of the three-year term. In FY 2012/13, these employees paid 3% of the 7% employee share, with the District paying the remaining 4%; in FY 2013/14, these employees will pay 5% of the 7%, with the District paying the remaining Yorba Linda Water District FY 2013/14 Budget Page 11 2%; and in FY 2014/15, these employees will pay the full 7%, with the District covering only the employer portion of the contribution. Beginning on July 1, 2012, the District also matched dollar for dollar, not to exceed 2 % of any Management or Supervisory/Confidential employee’s salary per year, of his/her deposits into a qualified Deferred Compensation Plan. The move to employees paying their own portion of the 7% PERS retirement contribution is offset by a Cost of Living Increase (COLA) of 3% over three years, beginning in FY 2012/13. This is the first COLA for employees since FY 2008/09. Additionally, employees with less than five years of service accrue 2.0 weeks of vacation annually. After five years of service with the District, employees accrue vacation at the rate of 3.0 weeks annually; after 10 years of service, employees accrue vacation at the rate of 3.5 weeks per year, after 15 years, employees accrue vacation at the rate 4.0 weeks per year, and after 20 years of service, employees accrue vacation at the rate of 4.5 weeks annually. Sick Leave is accrued at the rate of one day per month. The District observes eleven paid holidays per year. The District also signed a Letter of Compensation and Terms for Employme nt with all Bargaining Unit employees than includes all of the benefits awarded to the Management and Supervisory/Confidential employees, with the exception of the Deferred Compensation Plan match. These employees also began paying their own portion of the 7% employee contribution towards PERS retirement on a similar schedule to the Management and Supervisory/Confidential employees, with both employee groups paying the full contribution at the end of FY 2014/15. Reserves and Funding Sources Currently, the District has nine water and sewer enterprise-related funding sources. Attached is a summary of these funding sources and their associated balances. Five of these funds are restricted or designated specifically for capital projects including: COP Bonds 2008, Water Capital Projects, Sewer Capital Projects, Water Emergency and Sewer Emergency. Both the Water Emergency and the Sewer Emergency Funds are non -restricted and were established to fund unplanned, unbudgeted emergency repairs related to the water and sewer system, respectively. The Water Emergency Fund was established in FY 2009/10, with a transfer of $2 million from the Annexation Fund . The Sewer Emergency Fund was established in FY 2007/2008, with the Board of Directors’ decision that approximately $1 per connection per month would be set to fund this account. The Board also established at that time a Sewer Emergency Fund ceiling guideline of $1 million, after which any additional revenue generated would be transferred to Sewer Capital Reserves. Yorba Linda Water District FY 2013/14 Budget Page 12 The remaining three funds are the Water Restricted for Debt Service Fund, which is used to pay the Districts principal and interest payments and the Water and Sewer Operating Funds which are used to fund day-to-day operations and maintenance activities as identified in the budget, which occur as actual expenses. These activities require cash, checks and wire transfers on a regular basis and affect the District’s cash flow. Summary The Water Enterprise is budgeted with a FY 2013/14 loss of $2.0 million under the proposed budget, which includes a rate increase and variable water cost pass -through, and with depreciation of $5.6 million. This does not include CIP project expenditures, which are funded separately with capital reserves and other identified funds. On a cash basis, this budget will provide approximately $2.2 million at the end of the fiscal year. The Sewer Enterprise is budgeted with a FY 2013/14 loss of $798,000, with depreciation of $1.3 million. This also does not include CIP proje ct expenditures, which will require funding from capital reserve funds and operating fund transfers. On a cash basis, this budget will provide $502,000 at the end of the fiscal year. A comprehensive Asset Management Plan (AMP) was completed in FY 200 9/10 to establish long term needs and objectives for funding asset replacements. This study allows the Board of Directors and staff to engage more fully in funding needs , assess options for future asset replacements and establish recommendations for a comp onent of the water rate that may partially or completely fund reserves and thereby establish financial security for the future. In FY 2011/12, the District completed a Financial Planning Model that incorporates the District’s annual operating expenses, wit h its debt service obligations and recommendations of the AMP, along with inputs for additional Capital Projects identified by staff. This planning tool allows the District to forecast financial needs into the future and determine appropriate revenue adjus tments and sources needed to complete the District’s service objectives. The current budget does fully fund the AMP recommendations, for the first time in two years. This is yet another positive step for ensuring the future fiscal stability of the District. Respectfully Submitted, Steve Conklin Acting General Manager Yorba Linda Water District FY 2013/14 Budget Page 13 Budget Overview Yorba Linda Water District FY 2013/14 Budget Page 14 Resolution to Adopt Budget RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE BUDGET FOR FISCAL YEAR 2013/14 AND RESCINDING RESOLUTION NO. 12-14 WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal Year 2013/14; and WHEREAS, on May 23, 2013, the proposed “Draft” Budget for Fiscal Year 2013/14 was presented and reviewed at a regular meeting of the Board of Directors of the District; and WHEREAS, the “Final” Budget for Fiscal Year 2013/14 was presented and considered by the Board of Directors at a regular meeting on June 13, 2013; and WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year 2013/14, and rescind Resolution No. 12-14. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That the Budget for Fiscal Year 2013/14, set forth in Exhibit “A” attached hereto, is hereby approved and adopted. Section 2. The Budget for Fiscal Year 2013/14 is in full force and effect beginning July 1, 2013, and continuing until this Resolution is rescinded by the Board of Directors. Section 3. That Resolution No. 12-14 is hereby rescinded effective July 1, 2013. PASSED AND ADOPTED this 28th day of June 2013, by the following called vote: Gary Melton, President Yorba Linda Water District Yorba Linda Water District FY 2013/14 Budget Page 15 GFOA Distinguished Budget Award FY 2012/13 Yorba Linda Water District FY 2013/14 Budget Page 16 Mission & Vision Statement Our Mission “Yorba Linda Water District will provide reliable, high quality water and sewer services in an environmentally responsible manner, while maintaining an economical cost and unparalleled customer service to our community.” Our Vision “Yorba Linda Water District will become the leading, innovative and efficient source for high quality reliable services.” (Native California Plant at YLWD Headquarters) Yorba Linda Water District FY 2013/14 Budget Page 17 Core Values Statement The Yorba Linda Water District Board of Directors and staff are guided in everything we do by the following core values: Integrity– We demonstrate integrity every day by practicing the highest ethical standards and by ensuring that our actions follow our words. Accountability– We acknowledge that both the Board and the staff of the District are accountable to the public that we serve, as well as to each other. Responsibility– We take full responsibility for our actions- both our successes and our opportunities for growth. We maintain a commitment of courtesy, assessment and resolution with all customer concerns. Transparency – We promote a culture where we actively listen to our customers and communicate openly about our policies, processes and plans for the future. Teamwork – Success centers on all departments working together and sharing information and resources to achieve common goals. We are dedicated to ensuring that every voice of the District, from the Board to each individual employee is treated with dignity and respect, and that differences are valued and individual abilities and contributions are recognized. (Water Quality Engineer Heading to Site Visits) Yorba Linda Water District FY 2013/14 Budget Page 18 Strategic Goals Statement The Government Finance Officers Association (GFOA) recommends th at all governmental entities use some form of strategic planning to provide a long -term perspective for service delivery and budgeting, thus establishing logical links between authorized spending and broad organizational goals. The goals, objectives and action steps within the District’s Strategic Plan were determined by the mission and vision statements and core values of the District and further established through the process initiated by the Board of Directors through a Strategic Plan Workshop. Stakeholders that participated in this process included all five Board Members, the Executive Management team and members of the Employee Productivity-Innovation-Communications (EPIC) Committee, made up of staff representatives with varied levels of experience a nd expertise from across all District departments. In the District’s strategic planning, goals are defined as identified challenges the District would like to address. Initiatives are defined as high -level concepts or plans for resolving the identified goals. Strategies are defined as action steps to achieving the identified initiatives, which, in turn, achieve the identified goals. Five goals were identified as the most critical challenges for the Dis trict to address in the next year: Goal CP: Community Partnership Goal FR: Fiscal Responsibility Goal OE: Operational Efficiency Goal SR: Service Reliability Goal WE: Workforce Engagement Yorba Linda Water District FY 2013/14 Budget Page 19 Goal CP: Community Partnership As a public agency, the District is expected to demonstrate the prudent use of public funds. The District’s services should provide tangible benefits that are of value to the community. Strengthening existing relationships with key stakeholders, including customers and agency partners, while demonstrating our dedication to transparency in the most professional manner, is paramount. Initiatives Strategies Enhance Resources for Public Information & Governmental Affairs Division Develop a Public Relations Master Plan with Measurable Goals Have Board of Directors and YLWD Staff Attend More Events and Inter-governmental Meetings within the Local Community Continue to Support Regional Training and Multi-Agency Workgroups through the Joint Use of the Administration Building Effectively Use Broad Spectrum Communication Opportunities CP 1: Increase Brand Recognition within the Community CP 2: Increase Public Awareness of Water and Wastewater Related Issues CP 1-A CP 1-B CP 1-C CP 1-D CP 1-E CCP 1: Increase Brand Recognition within the Community Yorba Linda Water District FY 2013/14 Budget Page 20 Goal CP: Community Partnership, Continued Provide Financial Incentives and Rebates for Water Use Efficiency Develop and Expand a Youth Education Program Consider Participation in the California Urban Water Conservation Council’s Best Management Practices Enhance the District’s Regional Water and Wastewater Industry Participation Maintain a Commitment to Updating the District’s Rules and Regulations Pertaining to Water, Sewer & Special District Best Practices CP 2: Increase Public Awareness of Water and Wastewater Related Issues CP 2-A CP 2-B CP 2-C CP 2-D CP 2-E Yorba Linda Water District FY 2013/14 Budget Page 21 Goal FR: Fiscal Responsibility The District is ranked highly by financial ratings organizations, has proven to be a good financial steward, and consistently strives for a clear, well-documented budget process and clean annual financial audit. However, with the state and national economic crisis, the District has an even greater responsibility to demonstrate effective and responsibl e use of public funds while responding to ever-increasing financial challenges. Initiatives Strategies Develop a Comprehensive Multi-Year Financial Plan Prepare a High Level Annual Budget Document and Comprehensive Annual Financial Report and Compete for Recognition by the Government Finance Officers Association Revise the Water and Sewer Rules and Regulations and Evaluate Fee Schedules Regularly for Proper Cost of Service Coverage Evaluate and Revise the Sewer Fund Allocation Maintain Commitment to a Strong Debt Services Ratio FR 1: Maintain Fiduciary Responsibility FR 2: Increase Reserve Funding FR 3: Identify and Develop Additional Revenue Options FR 4: Provide an Equitable Rate Structure FR 1-A FR 1-C FR 1: Maintain Fiduciary Responsibility FR 1-D FR 1-E FR 1-B Yorba Linda Water District FY 2013/14 Budget Page 22 Goal FR: Fiscal Responsibility, Continued Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies Review the Reserve Policy and Funding Levels Annually Analyze the Asset Management Plan to Determine Future Asset Replacement Needs Implement an Approach to Ensure Reserves are Responsibly Funded Research and Obtain Grant Funding Whenever Feasible Review Opportunities to Earn “Cash-Back” on Operating Expenses through Commercial Credit Card Accounts Manage Cash Flow to Maximize Investment Income Complete the Cost of Service and Water Rate Study Evaluate Equitable Rate Structures that Promote Conservation and Efficiency FR 2: Increase Reserve Funding FR 2-A FR 2-B FR 2-C FR 3-A FR 3-B FR 4-A FR 4-B FR 3: Identify and Develop Additional Revenue Options FR 4: Provide an Equitable Rate Structure FR 3-C FR 1-F Yorba Linda Water District FY 2013/14 Budget Page 23 Goal OE: Operational Efficiency The District has provided reliable and trusted service for more than one hundred years, yet it recognizes the importance of continual improvements to increase operational efficiency. Initiatives Strategies Identify the Current Functionality of Existing Technology and Determine if it is Being Utilized to Full Capacity Evaluate How Each Department Might Make Further Use of Existing Technology Provide Support and Encourage Employee Training Improve connectivity for Computerized Maintenance and Management System (CMMS) Improve Internet and Intranet Access Availability by I ncreasing Bandwidth Integrate GIS with Hydraulic Model, CMMS, Valve Exercise, and Hydrant Flushing OE 1: Optimize Use of Existing Technologies OE 2: Address Inefficiencies Identified in the Self-Assessment Survey OE 3: Consider Utilization of a Peer Review Survey OE 1-A OE 1-B OE 1-C OE 1: Optimize Use of Existing Technologies OE 1-D OE 1-E OE 1-F Yorba Linda Water District FY 2013/14 Budget Page 24 Goal OE: Operational Efficiency, Continued Improve Radio Communications Adopt GIS Data Maintenance and Request Procedures Implement Field GIS software (Underground Service Alert, As-built Lining and Red-lining) Convert Transferred Sewer Lines into GIS Install a Reliable Backup Power System at Remote Control Sites Initiate a Comprehensive Backup Work Toward Implementation of a District-Wide Paperless Processing System Identify Core Inefficiencies Develop Measurable Productivity Goals Engage Employees in Methods of Addressing Inefficiencies OE 2: Address Inefficiencies Identified in the Self-Assessment Survey OE 2-A OE 2-B OE 2-C OE 1-G OE 1-H OE 1-I OE 1-J OE 1-L OE 1-M OE 1-K Yorba Linda Water District FY 2013/14 Budget Page 25 Goal OE: Operational Efficiency, Continued Determine the Cost Benefit Ratio of a Peer Review Survey Establish a Team to Determine the Focus of the Survey Institute Guidelines for Areas to Be Addressed OE 3: Consider Utilization of a Peer Review Survey OE 3-A OE 3-B OE 3-C Yorba Linda Water District FY 2013/14 Budget Page 26 Goal SR: Service Reliability The ultimate purpose of District assets and infrastructure is to safely and reliably provide vital services to the public. Our goal is to maintain all assets for optimal continuity of District services. Effective management of assets involves monitoring asset conditions against the level of service to manage risk of failure, planning for future financial needs and anticipating uncertainties or changing levels of service. Initiatives Strategies Continue with Efforts to Annex District Service Area to Orange County Water District Forecast Service Demand Projections Engage with Regional Agencies on Water Supply Issues Strengthen Existing Emergency Operations Partnerships Develop 1 Additional Well Site SR 1: Work Toward Service Reliability and Efficiency SR 2: Explore Service Boundary Opportunities SR 3: Complete Implementation of Capital Improvement Project Plan 2011-2015 SR 1-A SR 1: Work Toward Service Reliability and Efficiency SR 1-B SR 1-C SR 1-D SR 1-E Yorba Linda Water District FY 2013/14 Budget Page 27 Goal SR: Service Reliability, Continued Evaluate Alternative Water Sources Evaluate Feasibility of Providing Additional Water Services within the Region Evaluate Feasibility of Providing Additional Wastewater Services within the Region Evaluate Feasibility of Providing Other Professional Services within the Region Complete Implementation of Five Year Capital Improvement Plan from FY 2011-2015 with adopted amendments Continue Planning for Long Term Capital Improvements and Replacements into the future SR 1-F SR 2: Explore Service Boundary Opportunities SR 2-A SR 2-B SR 3: Complete Implementation of Capital Improvement Project Plan 2011-2015 SR 3-A SR 3-B SR 2-C Yorba Linda Water District FY 2013/14 Budget Page 28 Goal WE: Workforce Engagement The District is known for its highly skilled staff and quality work. In order to retain a highly productive and proficient workforce, maintaining and building on employee engagement in the District will be critical to future success. With uncertain economic times to continue in the near term, however, great er calls for efficiency and responsiveness will require staff to be flexible and prepared to demonstrate effectiveness and accountability. Initiatives Strategies Maintain Competitive Compensation via Classification and Compensation Surveys Explore Alternative Benefits Establish Career Development Expectations of Existing Employees Develop Methodologies to Assist Employees in Attaining Career Expectations Continue to Support Additional Training for Staff WE 1: Retain a Highly Skilled and Capable Workforce WE 2: Develop a Comprehensive Succession Plan WE 3: Enhance Employee Relations WE 1-A WE 1-B WE 1-C WE 1: Retain a Highly Skilled and Capable Workforce WE 1-D WE 1-E Yorba Linda Water District FY 2013/14 Budget Page 29 Goal WE: Workforce Engagement, Continued Encourage Staff Participation in Professional Organizations and Local Civic Groups Execute Timely and Consistent Employee Performance Evaluations Identify Key Roles for Succession Define the Competencies and Motivational Profile Required for Key Roles Identify Individuals with the Potential to Perform Highly in Key Roles Develop Methodologies to Assist Employees in Preparing for Advancement Implement a Program to Recognize Employees for Excellence Conduct Bi-Yearly All Hands Meetings Continue to Encourage Employee Training in Leadership and Technology WE 2: Develop a Comprehensive Succession Plan WE 2-B WE 2-C WE 3: Enhance Employee Relations WE 3-A WE 3-B WE 3-C WE 2-A WE 2-D WE 1-F WE 1-G Yorba Linda Water District FY 2013/14 Budget Page 30 Profile of the District District Structure and Leadership The Yorba Linda Water District is an independent special district, which operates under the authority of Division 12 of the California Water Code. The Yorba Linda Water District has been providing water and sewer services to the residents of the City of Yorba Linda, portions of Placentia, Brea, Anaheim, and nearby unincorporate d areas since 1959, the year it was formed to take over the assets and water service responsibilities of the Yorba Linda Water Company, a mutual company formed in 1909. The District is governed by a five-member Board of Directors, elected at large from within the District’s service area. The General Manager administers the day-to-day operations of the District in accordance with policies and procedures established by the Board of Directors. The Yorba Linda Water District employs a full -time staff of 76 employees. The District’s Board of Directors meets on the second and fourth Thursday of each month. Meetings are publicly noticed and citizens are encouraged to attend. The District provides water, sewer or a combination of both services to residents and businesses within its service area, which includes approximately 14,475 acres of land comprising 22.6 square miles. The District serves a population of approximately 70,000 and currently provides water service through approximately 23,950 residential, commercial, and light industrial connections. District Services Residential customers make up approximately 92% of the District’s customer base and consume approximately 72% of the water provided annually by the District. The District obtains about half of its water supply from the Metropolitan Water District (MWD) through the Municipal Water District of Orange County (MWDOC) and the other half from groundwater wells within the area. In fiscal year 2010/11 and 2011/12, the District purchased 18,647.9 acre-feet and 19,285.6 acre-feet of water to provide to customers, respectively. Fiscal year 2012/13 is forecasted to provide 20,800 acre-feet. Yorba Linda Water District FY 2013/14 Budget Page 31 Board of Directors & Executive Staff Gary T. Melton, President Robert R. Kiley, Vice President Michael J. Beverage Phil Hawkins Ric Collet Director Director Director Steven R. Conklin John DeCriscio Acting General Manager/ Operations Manager Engineering Manager Art Vega Gina Knight Stephen Parker Interim IT Manager HR & Risk Manager Finance Manager Yorba Linda Water District FY 2013/14 Budget Page 32 Organizational Chart Yorba Linda Water District FY 2013/14 Budget Page 33 Personnel Trends by Position Position/Title 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 ADMINISTRATION Assistant General Manager 0.5 0.5 --- Executive Secretary 1 1 1 1 1 General Manager 1 1 1 1 1 Legislative Affairs Intern *-0.5 0.5 0.5 - Management Analyst 1 1 1 1 1 Public Affairs Intern *-0.5 0.5 0.5 0.5 Public Information Specialist 1 ---- Public Information Officer -1 1 1 1 Safety & Training Officer ----0.5 Records Management Clerk ----0.5 Total Administration 5 5.5 5.0 5.0 5.5 ENGINEERING Assistant General Manager ----- Contruction Inspector 1 1 1 1 1 Engineering Manager 1 1 1 1 1 Engineering Secretary 1 1 1 1 1 Engineering Technician II 3 3 2 2 2 Project Engineer 2 2 2 2 2 Project Manager ----- Senior Construction Inspector 1 1 1 1 1 Senior Project Engineer ----- Senior Project Manager 1 1 1 1 1 Water Quality Engineer 1 1 1 1 1 Water Quality Technician I ----- Water Quality Technician II 1 1 1 1 1 Total Engineering 12 12 11 11 11 *Position added during Mid-Year Budget adjustment Yorba Linda Water District FY 2013/14 Budget Page 34 Personnel Trends by Position, Continued Position/Title 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 FINANCE Accounting Assistant I 1 1 1 1 1 Accounting Assistant II 1 1 1 1 1 Customer Service Rep I 1 1 1 1 1 Customer Service Rep II 1 1 1 1 1 Customer Service Rep III 2 2 2 2 2 Customer Service Supervisor 1 1 1 1 1 Finance Director 1 1 --- Finance Manager --1 1 1 Financial Analyst ----- Meter Reader I 2 2 2 2 2 Meter Reader II 2 2 2 2 2 Meter Services Lead -1 1 1 1 Meter Services Representative 1 ---- Senior Accountant 1 1 1 1 1 Storekeeper 1 1 --- Total Finance 15 15 14 14 14 HUMAN RESOURCES Human Resources Analyst 1 1 1 1 1 Human Resources Clerk ----0.5 Human Resources Manager 1 ---- Human Resource & Risk Mananger -1 1 1 1 Personnel Technician 1 1 1 1 1 Safety & Training Officer ----- Total Human Resources 3 3 3 3 3.5 Note: Prior to Fiscal Year 2009/10, Human Resources was budgeted in the Administration Department Yorba Linda Water District FY 2013/14 Budget Page 35 Personnel Trends by Position, Continued To be approved via Resolution 13-XX by the Board of Directors on June 13, 2013 Position/Title 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 INFORMATION TECHNOLOGY GIS Administrator -1 1 1 1 GIS Analyst ----- GIS Technician 1 0.5 0.5 0.5 0.5 Information Systems Administrator 1 1 1 1 1 Information Systems Technician I 1 1 1 1 1 Information Systems Technician II 1 1 1 1 1 Instrumentation Technician 1 1 1 1 1 IT Director 0.5 0.5 --- IT Manager --1 1 1 SCADA Administrator 1 1 1 1 1 Total Information Technology 6.5 7 7.5 7.5 7.5 OPERATIONS Chief Plant Operator 1 1 1 1 1 Facilities Maintenance 1 1 1 1 1 Instrumentation Technician ----- Maintenance Distribution Operator II 7 7 8 8 8 Maintenance Distribution Operator III 4 4 4 4 4 Maintenance Worker I 8 8 9 9 9 Mechanic I ----- Mechanic II 1 1 1 1 1 Mechanic III 1 1 1 1 1 Meter Technician ----- Operations Assistant 1 1 --- Operations Assistant/Storekeeper --1 1 1 Operations Manager 1 1 1 1 1 Operations Secretary ----- Plant Operator II 3 3 3 3 3 SCADA Administrator ----- Sr Maintenance Distribution Operator 4 4 4 4 4 Senior Fleet Mechanic 1 1 1 1 1 Senior Plant Operator 1 1 1 1 1 Water Maintenance Superintendant 1 1 1 1 1 Total Operations 35 35 37 37 37 DISTRICT TOTAL (FTE)76.0 77.5 77.5 77.5 78.5 Yorba Linda Water District FY 2013/14 Budget Page 36 Personnel Trends by Department Department 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 Administration 5 5.5 5 5 5 Engineering 12 12 11 11 11 Finance 15 15 14 14 14 Human Resources 3 3 3 3 4 Information Technology 6 7 7.5 7.5 7.5 Operations 35 35 37 37 37 DISTRICT TOTALS (FTE)76 77.5 77.5 77.5 78.5 Yorba Linda Water District FY 2013/14 Budget Page 37 Financial Policies & Goals This section includes a brief summary of the District’s Operating Budget Policy, Revenue and Expenditure Policy, Reserve Policy, and Investment Policy. The full Financial Policies can be found on page 189. Operating Budget Policy The District’s budget is developed in accordance with the priorities which are linked to the District’s financial and strategic plans set forth in the District’s mission and long-term goals and objectives. These are found in the District’s comprehensive master plans, the long term financial plan, the needs of the community, and federal and state laws. The District operating and capital budget is developed on an annual basis. Operating and capital appropriations are approved by the District’s Board of Director’s. A balanced budget is defined as the amount of budgeted expenditures is equal to or less than the amount of budgeted revenue, plus available fund balance. The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The budgeting for District expenses, with the exception of supplies and services, is on an accrual basis. Supplies and services are budgeted on a cash basis. The District is operated as an enterprise fund, an accounting entity which finances and accounts for the acquisition, operation, and maintenance of governmental facilities and services. It is the intention of the District to recover the full costs of providing maintenance, goods, and/or services through the collection of user charges. Revenue and Expenditure Policy Budgeted revenues are estimated conservatively using an objective and analytical approach using historical trends and current information to maintain consistency, reliability, and reasonableness. The District’s expenditures reflect the Board of Directors’ and staff commitment to serve present and future customers with reliable public services. The Board and staff believe that prudent expenditure planning and accountability will ensure fiscal stability. Budgeted expenditures are projected conservatively using an objective and analytical approach as well as certain techniques such as historical trends, current information, and e conomic indicators to maintain consistency, reliability, and reasonableness. Yorba Linda Water District FY 2013/14 Budget Page 38 Financial Policies & Goals Reserve Policy This policy represents the public affirmation of the Board’s commitment to the financial prudence and careful stewardship of community assets. This policy covers: Operating Reserve (target level of 8%-17% of annual operating budget); Emergency Reserve (target level between $1 and $4 million for water fund and $250,000 and $1 million for sewer fund); Capital Replacement Reserve (target level of $1.82 million for water fund less money set aside for Maintenance Reserve and $345,000 for sewer fund); Maintenance Reserve (target level of $200,000); Debt Service Reserve (target level of highest annual debt service payment); Employee Liabilities Reserve (annual contribution of $100,000) and US Bank 2008 COP Reserve (target level of $2,147,096). These funds are designated by the District’s Board to carry out specific purposes to ensure prudent management of District’s financial resources and are used by District’s staff as parameters within which the Board expects staff to operate. The Financial Reserve Policy has three primary goals:  To preserve the financial stability of the District against present and future uncertainties in an ever-changing environment  To maintain the District’s bond ratings in the capital markets and sustaining debt covenant compliance  To provide adequate funding to meet the District’s short-term and long-term plans and commitments to its customers All reserve balances will be subject to review by the Board of Directors on an annual basis as part of the budget process. Investment Policy The District annually reviews and updates the District’s Investment Policy. It is the policy of the District to invest funds in a manner that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the District and conforming to all statutes governing the investment of the District funds. The policy follows the “prudent investor” standard of the California Government Code Section 53600.3. Yorba Linda Water District FY 2013/14 Budget Page 39 Basis of Budgeting & Accounting The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The bu dgeting for District expenses, with the exception of supplies and services, is on the accrual basis. Supplies and services are budgeted on the cash basis of accounting. The District is operated as an enterprise fund, which is an accounting entity that finances and accounts for the acquisition, operation and maintenance of governmental facilities and services. It is the District’s intention to recover the majority of the costs of the acquisition, operation, and maintenance of governmental facilities through user- charges and the receipt of property taxes. Budget Controls When the Fiscal Year 2013-14 Operating and Capital Budget is approved by the Board, budgeted amounts are appropriated and expended within each department. Subject to the approval of the annual budget by the Board of Directors, the General Manager has full charge and control of the District’s expenditures to ensure that operating and capital expenditures in each fiscal year are within the budgetary guidelines and to ensure that the District’s goals and objectives are met. Developing and monitoring the budget is an ongoing process. Monthly reports of expenses and revenues compared to the budget are developed to provide a method for ongoing review at the department level and are presented to the Finance Accounting Committee. The Board reviews quarterly financial status reports. Throughout the year, Finance and other department managers will review actual results of operating expenditures as compared to the budgeted amounts approved by the Board of Directors in June 2013. The General Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect the budgeted year -end fund balances. Any significant program changes or service level changes require approval by the Board of Directors. All budget transfers are documented and tracked within the Finance Department. Yorba Linda Water District FY 2013/14 Budget Page 40 Budget Controls, Continued Review and adjustments to the capital budget appropriatio ns are also recommended throughout the fiscal year. Project managers may find that some projects contemplated at the beginning of the fiscal year have been delayed or accelerated due to changes in conditions, weather and/or economics, and new projects may be added to meet future demands, goals and objectives. Any recommended changes to the Capital Improvement Budget would be brought to the Board of Directors for approval. Resolutions adopted by the Board of Directors are required for authorizing positions in the service of the District and for setting salary ranges for those authorized positions. The General Manager is authorized to use savings from vacant authorized positions to retain contract labor to meet District personnel needs. The General Manager is also authorized to fill an approved and budgeted position that is vacated during the term of the budget year with a new employee at an equal or lower classification. The budget may need to be modified to reflect labor and benefit agreements. These changes would be approved by the Board of Directors. As defined by the District’s Purchasing Policy, in the event that the General Manager determines that an emergency exists and requires immediate action, the General Manager shall have the power, without prior Board action, to enter into contracts and agreements and expend funds on behalf of the District beyond the final approved fiscal year budget in an amount not to exceed $10 0,000. Those amounts shall be ratified at the next meeting or at the earliest special meeting that can be called. Amounts in excess of $100,000 require Board of Director approval and shall be formally ratified at the next meeting or at the earliest special meeting that can be called. Yorba Linda Water District FY 2013/14 Budget Page 41 Budget Process The budget process begins in January of each year and is the product of a comprehensive team effort from various levels within the organization. Each year, the Finance Department prepares expenditure budget worksheets for distribution to key staff. These worksheets give staff the necessary information to project their department’s budgets by category. Included in the worksheets are the past year’s actual expenses, current year transactions, and projected current year end balances. Based on the information provided, and acc ounting for any changes for anticipated purchases, the requested amounts from the worksheet are entered into the budget system and compared to last year’s budget. Any substantial budget change needs to be justified by the respective departments. The Human Resources Department reviews the employee positions and wages of the District. The Human Resources Department makes a recommendation to the General Manager if new positions need to be added, changes in job descriptions need to occur, or reclassifications of position are required. The results of this review are presented to the Personnel-Risk Management Committee for further input and approval. The approved personnel recommendations are entered into the budget system for inclusion in the budget document. The Engineering Department prepares a list of CIP projects to be presented to the Planning-Engineering-Operations Committee. Based on recommendations from staff, each CIP project will be prioritized based on necessity. The Engineering Department will also update the future project list and will incorporate cost changes due to construction cost increases or a change in the scope of the project. The method to determine the revenue projections takes into account factors such as projected growth, required conservation, historical activity, expected weather conditions and the current economic conditions. Once all the components have been calculated, each department presents their departmental budget to their appropriate committee for review. Comments and changes that are recommended by staff and committees are included in a draft document that is then presented to the Board of Directors in a public forum for review and comment. Once all approved changes have been incorporated into the draft document, it is presented as one complete document to the Board as a discussion item to determine if any other revisions are necessary. At the following Board meeting, a final budget is then presented to the Board of Directors for adoption. Developing and monitoring the budget is an ongoing process. Monthly reports of expenses and revenues compared to the budget are developed to provide a method for ongoing review at the department level and are presented to the Finance Accounting Committee. The Board reviews quarterly financial status reports. Yorba Linda Water District FY 2013/14 Budget Page 42 Budget Calendar DATE BOARD/COMMITTEE SCHEDULE JANUARY January 15, 2013 Manager's Meeting Discuss Budget Calendar and Process Personnel & Capital budget discussion January 28, 2013 Finance-Accounting Committee Review the Budget Calendar FEBRUARY February 5, 2013 Manager's Meeting Personnel & Capital budget discussion February 7, 2013 Planning-Engineering-Operations Committee Capital Improvement Projects budget (v 0.5) February 25, 2013 Finance-Accounting Committee Finance budget (v 1.0) February 27, 2013 Exec-Admin-Organizational Committee Board of Directors and Administration budget (v 1.0) MARCH March 4, 2013 Public Affairs-Communications-Tech Committee IT & Public Affairs budget (v 1.0) March 7, 2013 Planning-Engineering-Operations Committee Engineering and Operations budget (v 1.0) Vehicle Equipment & Capital Outlay budget (v 1.0) March 12, 2013 Personnel-Risk Mgmt Committee HR budget (v 1.0) March 19, 2013 Exec-Admin-Organizational Committee Administration budget (v 2.0) March 25, 2013 Finance-Accounting Committee Draft Budget (v 1.0) Reserve policy analysis (v 1.0) March 27, 2013 Personnel-Risk Mgmt Committee Labor and benefits (v 1.0), HR budget (v 2.0) APRIL April 2, 2013 Public Affairs-Communications-Tech Committee IT budget (v 2.0) April 8, 2013 Planning-Engineering-Operations Committee Engineering and Operations budget (v 2.0) Capital Improvement Projects budget (v 2.0) Vehicle Equipment & Capital Outlay budget (v 2.0) April 9, 2013 Personnel-Risk Mgmt Committee HR budget (v 3.0), Labor and Benefits (v 2.0) April 18, 2013 Board Workshop - Budget Draft budget presented to Board for review and discussion Reserve policy discussion April 22, 2013 Finance-Accounting Committee Draft reserve policy MAY May 23, 2013 Board of Directors Draft Budget (Full Board) JUNE June 13, 2013 Board of Directors Budget review and adoption (Full Board) Reserve policy adoption Yorba Linda Water District FY 2013/14 Budget Page 43 Revenue Assumptions The main source of Operating Revenue for the District is water and sewer rate revenue. However, rate revenue is not enough to fund the total cost of operations and must be supplemented by a variety of miscellaneous/other operating revenues. Other operating revenues include items such as customer service fees, unmetered jumpers, and other sources. Total operating revenues are projected to increase at a rate of 9% in FY 2013/2014. W ater operating revenues are estimated to increase by 10% to $28,181,759 in FY 2014. Sewer operating revenues are estimated to decrease by 1% to $1,788,002 in FY 2014. Water Operating Fund Potable Water sales are the largest source of District revenues, with the majority of sales to residential customers. In the previous and current year, mild weather conditions, less that desirable economic conditions, and a strong water conservation message have resulted in lower consumption demand, thus lower than anticipated water revenues. It is projected that the coming year will continue along the same “new normal” trend and water use levels will remain flat as homeowners continue already formed habits consistent with operating within restricted levels. There is no tiered water rate structure at YLWD. Therefore, Water Revenues are calculated using the average number of units consumed per customer account, a proposed monthly fixed charge per account, and a proposed $2.64 per billing unit consumed (which is 100 cubic feet (ccf) or approximately 750 gallons). The result is then annualized for the budget projection. The budget assumes a yearly demand of 20,000 acre feet (AF) in FY 2014. The chart below displays the historical trend of water revenue. Yorba Linda Water District FY 2013/14 Budget Page 44 Revenue Assumptions, Continued Revenue from Service Charges is a calculation of the projected number of service connections for FY 2014 (24,193) multiplied by the proposed fixed service charge based on meter size. The following chart displays this information. Water Rate Structure FY 12/13 FY 13/14 FY 14/15 Effective Date 7/1/2012 7/1/2013 7/1/2014 Monthly Service Charges (per month) 5/8 $7.56 $8.80 $10.06 3/4 $7.56 $8.80 $10.06 1 $12.60 $14.67 $16.77 1 1/2 $25.20 $29.34 $33.54 2 $40.32 $46.94 $53.66 3 $88.20 $102.67 $117.37 4 $158.76 $187.80 $211.26 6 $352.80 $410.67 $469.47 Water Usage Charge (based on actual pass-through water supply charges) $2.57/hcf $2.64/hcf TBD Other Income Revenues, which include but are not limited to backflow charges, unmetered jumpers, construction meters, new account fees, and other income, are projected based upon historical activity and current economic conditions. Interest Income for the water operating funds is projected based on an average yield of 0.5% on the District’s portfolio. Property Tax Income is projected based on the assumptions of the Orange County Tax Assessor. The District anticipates receiving 97% of its share of the ad valorem tax revenue, which will result in a 1% increase when compared to the previous year. Other Non-Operating Revenue, which include but are not limited to annexation fees, rental income, and other sources, are projected based upon historical activity and current economic conditions. Yorba Linda Water District FY 2013/14 Budget Page 45 Revenue Assumptions, Continued Sewer Operating Fund The District’s Sewer Revenues are based on the sewer collection services provided to our customers. Sewer maintenance charges will remain fixed at $5.50 per month for single family residential customers with associated charges for multi-family and commercial accounts. The District will provide sewage collection services for approximately 25,500 sewer service connections. Yorba Linda Water District FY 2013/14 Budget Page 46 Revenue Assumptions, Continued Other Income Revenues, which include but are not limited to sewer collection fees and miscellaneous income, are projected based upon the historical activity and current economic conditions. Interest Income for the sewer operating funds is projected based on an average yield of 0.5% on the District’s portfolio. Yorba Linda Water District FY 2013/14 Budget Page 47 Cost Allocation The allocation of costs are derived from cost accounting. Cost accounting is defined as the process of tracking, recording and analyzing costs associated with the products or activities of an organization. The costs of operating expenses including employee wages and benefits are allocated to each department and division, based on actual expenses as tracked by the District’s accounting system. The District’s budget is presented with an allocation of 93% to the Water Fund and 7% to the Sewer Fund, with the exceptions of the Water Production, Water Operations, and Mechanical Services sections which are allocated 100% to the Water Fund. Additionally, the Sewer Operations section, which includes sewer-related expenses including vehicle maintenance, is allocated 100% to the Sewer Fund. The methodology used to determine the allocation percentages involved discussions with personnel from each department where they were to identify a basis for each section by which an allocation percentage could be used. This analysis concluded that the allocation percentage described above was appropriate. Costs associated with capital projects are tracked by the means of assigned “Job Numbers”. Salaries affiliated with capital projects are allocated to the appropriate CIP accounts based on actual timesheet entries. An overhead of approximately 33% is applied to the allocated salary costs by job number in order provide a true salary and benefit cost applicable to CIP projects. Chart of Major Funds Structure (FY 12/13) Water Sales Service Charges Property Tax Interest Income Other Income Sewer Service Charges Water Fund Sewer Fund District Operations & Maintenance Activities Yorba Linda Water District FY 2013/14 Budget Page 48 Rate History * Based on a 1 inch meter Monthly Commodity Minimum Monthly Commodity Minimum Allowance Charge Monthly Allowance Charge Monthly Year (CCF)(CCF)Charge Year (CCF)(CCF)Charge 1960 20 $0.06 $3.50 1987 5 $0.59 $5.95 1961 20 $0.06 $3.50 1988 5 $0.59 $5.95 1962 20 $0.06 $3.50 1989 5 $0.59 $5.95 1963 20 $0.06 $3.50 1990 5 $0.61 $6.15 1964 10 $0.10 $3.50 1991 5 $0.66 $6.65 1965 10 $0.10 $3.50 1992 5 $0.76 $7.65 1966 10 $0.10 $3.50 1993 0 $0.92 $4.65 1967 10 $0.10 $3.50 1994 0 $0.98 $4.65 1968 8 $0.12 $3.50 1995 0 $0.98 $4.95 1969 6 $0.14 $3.50 1996 0 $0.98 $4.95 1970 6 $0.16 $3.50 1997 0 $0.98 $4.95 1971 6 $0.16 $3.50 1998 0 $0.98 $4.95 1972 6 $0.16 $3.50 1999 0 $0.98 $4.95 1973 6 $0.18 $3.50 2000 0 $1.03 $5.20 1974 6 $0.20 $3.50 2001 0 $1.03 $5.20 1975 6 $0.20 $3.50 2002 0 $1.13 $5.70 1976 6 $0.24 $3.50 2003 0 $1.33 $5.70 1977 6 $0.24 $3.50 2004 0 $1.33 $6.70 1978 6 $0.27 $3.50 2005 0 $1.57 $7.92 1979 6 $0.27 $3.50 2006 0 $1.57 $7.92 1980 6 $0.30 $3.50 2007 0 $1.57 $7.92 1981 6 $0.30 $3.50 2008 0 $1.79 $8.35 1982 6 $0.30 $3.50 2009 0 $2.52 $10.20 1983 6 $0.30 $3.50 2010 0 $2.52 $11.73 1984 6 $0.39 $3.50 2011 0 $2.52 $11.73 1985 5 $0.45 $4.00 2012 0 $2.57 $12.60* 1986 5 $0.57 $5.85 2013 0 $2.64 $14.67* Yorba Linda Water District FY 2013/14 Budget Page 49 Average Residential Monthly Bill by Year Note: Using 22.3 ccf per billing period (1 ccf = 748 gallons) with a 1 inch meter Prior to April 2009, bills were submitted bi-monthly. This graph averages out the charges to a hypothetical monthly bill. Water Consumption Sewer Service Service Charge FY 04/05 $33.00 $3.50 $7.92 FY 05/06 $35.01 $3.50 $7.92 FY 06/07 $35.01 $5.50 $8.35 FY 07/08 $39.92 $5.50 $8.35 FY 08/09 $39.92 $5.50 $8.35 FY 09/10 $56.20 $5.50 $10.20 FY 10/11 $56.20 $5.50 $11.73 FY 11/12 $56.20 $5.50 $11.73 FY 12/13 $57.31 $5.50 $12.60 FY 13/14 $58.87 $5.50 $14.67 Yorba Linda Water District FY 2013/14 Budget Page 50 ( Water Quality Technician Completing Weekly Testing) Yorba Linda Water District FY 2013/14 Budget Page 51 Demographics The District boundaries shown in the map below encompass an area of approximately 22 square miles in northern Orange County, running north of the 91 freeway, from the western edge of Chino Hills State Park and incorporating nearly all of the City of Yorba Linda, in addition to portions of the Cities of Anaheim, Placentia and Brea. The District’s service area is known for having larger than average residential lots and more than 30 horse trails of more than 100 miles of aggregate length. In 2010, CNN ranked the City of Yorba Linda as 38th among the best places in the United States to live. Similarly, in an article by CNN Money, the City of Yorba Linda was listed as one of the most affluent cities in the United States, as well as the highest med ian income in Orange County, as reported by 2010 Census data, based on towns between 65,000 and 250,000 in population. Due to the overlapping of the District’s service areas with multiple cities, the following demographic data is from the City of Yorba Linda, as it most closely represents the full District. Projections from the Southern California Association of Governments estimate that the population within the District’s service area will grow from approximately 72,000 to nearly 98,000 by the year 203 5. The U.S. Census Bureau estimates the median household income for the City of Yorba Linda for the years 2007-2011 is $115,291 and the median house value for the same time period is $724,600. Yorba Linda Water District FY 2013/14 Budget Page 52 Demographics, Continued The following chart illustrates the family income and home value medians as compared to the County of Orange and the State of California. The racial makeup of the City of Yorba Linda is 75% White, 14% Hispanic, 9% Asian, 1% African-American and 1% Other. The following chart visualizes these percentages. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 City of Yorba Linda Orange County State of California City of Yorba Linda Median Comparisons Median Family Income Median Home Value 75% 14% 9% 1% 1% City of Yorba Linda Demographics White Hispanic Asian African-American Other Yorba Linda Water District FY 2013/14 Budget Page 53 Ten Largest Customers Most Recent and Ten Years Ago FY 2012/13 Customer Name Business Type Annual Revenues % of Actual Revenues 1 City of Yorba Linda Government 1,862,792$ 6.35% 2 Placentia Yorba Linda USD Government 286,151$ 1.05% 3 Fairmont Hill Community Assoc.Homeowner's Assoc.117,255$ 0.43% 4 Kerrigan Ranch II Community Assoc.Homeowner's Assoc.105,582$ 0.39% 5 Yorba Linda Villages Homeowner's Assoc.100,875$ 0.37% 6 Archstone Yorba Linda Homeowner's Assoc.95,474$ 0.35% 7 The Hills at Yorba Linda Homeowner's Assoc.93,273$ 0.34% 8 Lake Park Mobile Home Community Homeowner's Assoc.69,249$ 0.25% 9 Mt. San Antonio Home Owners Assoc.Homeowner's Assoc.53,947$ 0.20% 10 Woodgate Condominiums Homeowner's Assoc.51,381$ 0.19% 2,835,978$ 8.91% FY 2001/02 Customer Name Business Type Annual Revenues % of Actual Revenues 1 City of Yorba Linda Government 1,915,252$ 14.99% 2 Saba Petroleum Manufacturer 175,921$ 1.38% 3 Tac West Inc Manufacturer 98,368$ 0.77% 4 St Francis of Assissi Private School 97,005$ 0.76% 5 Shigemi Muranaka Nursery Retail 78,760$ 0.62% 7 Placentia Unified School Government 31,610$ 0.25% 6 Sunset Tropicals Nursery Retail 30,969$ 0.24% 8 Costco Warehouse Retail 30,308$ 0.24% 9 Excell Circuits Manufacturer 27,840$ 0.22% 10 YL Country Club Private Club 25,744$ 0.20% 2,511,776$ 19.67% Yorba Linda Water District FY 2013/14 Budget Page 54 FINANCIAL SUMMARIES Yorba Linda Water District FY 2013/14 Budget Page 55 Total Revenue and Expenses (Water & Sewer) FY 2010/11 Actual FY 2011/12 Actual FY 2012/13 Budget FY 2012/13 Forecast FY 2013/14 Budget Revenue (Operating): Water Revenue (Residential)14,322,659$ 16,120,680$ 15,405,197$ 16,458,968$ 16,217,590$ Water Revenue (Commercial & Fire Det.)1,755,870$ 1,820,913$ 1,822,665$ 2,078,659$ 2,020,223$ Water Revenue (Landscape/Irrigation)3,333,093$ 3,687,643$ 4,035,121$ 4,503,508$ 4,794,156$ Service Charges 3,274,629$ 3,369,437$ 3,755,191$ 3,708,778$ 4,468,716$ Sewer Charge Revenue 104,030$ 205,435$ 198,433$ 198,433$ 200,797$ Sewer Parcel Assessments 1,170,549$ 1,580,369$ 1,548,682$ 1,526,725$ 1,550,530$ Other Operating Revenue 1,035,545$ 848,238$ 643,737$ 715,784$ 717,749$ Total Operating Revenue 24,996,375$ 27,632,716$ 27,409,026$ 29,190,855$ 29,969,760$ Revenue (Non-Operating): Interest 274,152$ 277,137$ 170,000$ 114,304$ 87,000$ Property Tax 1,258,769$ 1,273,855$ 1,244,320$ 1,249,059$ 1,264,672$ Other Non-Operating Revenue 739,062$ 805,654$ 494,437$ 763,994$ 509,150$ Total Non-Operating Revenue 2,271,983$ 2,356,646$ 1,908,757$ 2,127,358$ 1,860,822$ Total Revenue 27,268,358$ 29,989,362$ 29,317,783$ 31,318,213$ 31,830,583$ Expenses (Operating): Variable Costs 11,267,615$ 12,275,853$ 12,953,024$ 14,335,494$ 13,767,658$ Salary Related Expenses 7,416,194$ 6,979,088$ 8,013,891$ 7,140,055$ 8,169,873$ Reduction for Capital Project Labor (513,199)$ -$ (365,000)$ (301,661)$ (265,000)$ Salary Related Expenses Total 6,902,995$ 6,979,088$ 7,648,891$ 6,838,394$ 7,904,873$ Supplies & Services: Communications 270,787$ 214,165$ 303,250$ 210,739$ 305,200$ Contractual Services 781,552$ 437,875$ 489,321$ 442,147$ 542,840$ Data Processing 129,863$ 125,732$ 135,340$ 126,955$ 170,730$ Dues & Memberships 29,832$ 58,432$ 62,192$ 74,113$ 72,335$ Fees & Permits 63,893$ 154,146$ 151,320$ 169,681$ 167,365$ Board Election 35,698$ -$ 51,600$ -$ -$ Insurance 221,949$ 228,805$ 279,200$ 282,662$ 299,240$ Materials 453,331$ 504,352$ 486,025$ 617,321$ 587,775$ District Activities, Emp Recognition 14,811$ 12,972$ 18,600$ 20,139$ 25,150$ Maintenance 280,108$ 532,933$ 378,470$ 394,052$ 479,150$ Non-Capital Equipment 109,830$ 111,375$ 128,050$ 147,598$ 137,950$ Office Expense 28,010$ 46,077$ 40,525$ 44,944$ 46,150$ Professional Services 782,507$ 907,959$ 777,460$ 755,714$ 815,210$ Training 24,269$ 39,030$ 46,100$ 25,454$ 63,160$ Travel & Conferences 21,366$ 20,488$ 44,250$ 25,168$ 52,450$ Uncollectible Accounts 20,263$ 22,995$ 39,000$ 25,000$ 25,000$ Utilities 91,853$ 72,027$ 85,000$ 85,855$ 90,800$ Vehicle Expenses 326,411$ 321,756$ 333,899$ 334,460$ 367,149$ Supplies & Services Sub-Total 3,686,333$ 3,811,119$ 3,849,602$ 3,782,002$ 4,247,654$ Total Operating Expenses 21,856,943$ 23,066,060$ 24,451,517$ 24,955,890$ 25,920,185$ Expenses (Non-Operating): Interest Expense 1,172,503$ 1,626,190$ 2,011,395$ 1,799,416$ 1,815,317$ Other Expense 406,575$ 108,984$ 124,210$ 44,206$ 77,400$ Total Non-Operating Expenses 1,579,078$ 1,735,174$ 2,135,605$ 1,843,622$ 1,892,717$ Total Expenses 23,436,021$ 24,801,234$ 26,587,122$ 26,799,513$ 27,812,902$ Net Income Before Capital Contributions 3,832,337$ 5,188,127$ 2,730,661$ 4,518,700$ 4,017,680$ Extraordinary Item -$ (5,000,000)$ -$ -$ -$ Capital Contributions 706,319$ 17,214,139$ -$ 350,819$ -$ Net Income Before Depreciation 4,538,656$ 17,402,266$ 2,730,661$ 4,869,519$ 4,017,680$ Depreciation 5,279,860$ 6,291,786$ 6,602,339$ 6,744,192$ 6,897,941$ Income (Loss)(741,204)$ 11,110,480$ (3,871,678)$ (1,874,673)$ (2,880,261)$ Yorba Linda Water District FY 2013/14 Budget Page 56 Total Revenue and Expenses (Water & Sewer), Continued Yorba Linda Water District FY 2013/14 Budget Page 57 Total Revenue and Expenses (Water) FY 2010/11 Actual FY 2011/12 Actual FY 2012/13 Budget FY 2012/13 Forecast FY 2013/14 Budget Revenue (Operating): Water Revenue (Residential)14,322,659$ 16,120,680$ 15,405,197$ 16,458,968$ 16,217,590$ Water Revenue (Commercial & Fire Det.)1,755,870$ 1,820,913$ 1,822,665$ 2,078,659$ 2,020,223$ Water Revenue (Landscape/Irrigation)3,333,093$ 3,687,643$ 4,035,121$ 4,503,508$ 4,794,156$ Service Charges 3,274,629$ 3,369,437$ 3,755,191$ 3,708,778$ 4,468,716$ Other Operating Revenue 981,471$ 753,830$ 585,929$ 667,922$ 681,074$ Total Operating Revenue 23,667,722$ 25,752,503$ 25,604,103$ 27,417,835$ 28,181,759$ Revenue (Non-Operating): Interest 252,522$ 253,478$ 150,000$ 97,861$ 75,000$ Property Taxes 1,258,769$ 1,273,855$ 1,244,320$ 1,249,059$ 1,264,672$ Other Non-Operating Revenue 732,638$ 538,468$ 490,262$ 759,610$ 501,200$ Total Non-Operating Revenue 2,243,929$ 2,065,801$ 1,884,582$ 2,106,530$ 1,840,872$ Total Revenue 25,911,651$ 27,818,304$ 27,488,685$ 29,524,365$ 30,022,631$ Expenses (Operating): Variable Water Costs (G.W., Import & Power)11,267,615$ 12,275,853$ 12,953,024$ 14,335,494$ 13,767,658$ Salary Related Expenses 6,586,253$ 6,125,692$ 7,091,403$ 6,367,840$ 7,237,204$ Reduction for Capital Project Labor (471,314)$ -$ (350,000)$ (295,067)$ (250,000)$ Salary Related Expenses Total 6,114,939$ 6,125,692$ 6,741,403$ 6,072,773$ 6,987,204$ Supplies & Services Communications 246,115$ 199,032$ 280,232$ 197,385$ 283,371$ Contractual Services 718,383$ 407,877$ 455,041$ 410,551$ 504,089$ Data Processing 118,175$ 116,676$ 125,866$ 117,648$ 158,779$ Dues & Memberships 26,899$ 53,650$ 57,609$ 68,934$ 67,021$ Fees & Permits 57,982$ 146,445$ 139,165$ 154,414$ 152,224$ Board Election 32,485$ -$ 47,988$ -$ -$ Insurance 201,974$ 212,136$ 259,656$ 263,323$ 278,293$ Materials 432,441$ 483,301$ 451,506$ 600,153$ 568,676$ District Activities, Emp Recognition 13,478$ 12,066$ 17,298$ 18,729$ 23,390$ Maintenance 237,689$ 398,747$ 307,065$ 279,506$ 357,243$ Non-Capital Equipment 87,296$ 94,576$ 109,782$ 131,874$ 121,534$ Office Expense 25,485$ 42,245$ 37,702$ 41,798$ 42,920$ Professional Services 557,721$ 873,650$ 740,578$ 726,445$ 775,685$ Training 20,976$ 34,710$ 41,353$ 19,042$ 56,963$ Travel & Conferences 19,417$ 19,194$ 40,833$ 23,763$ 48,389$ Uncollectible Accounts 18,919$ 21,833$ 36,270$ 23,250$ 23,250$ Utilities 83,603$ 66,904$ 79,050$ 79,169$ 83,700$ Vehicle Expenses 261,381$ 278,209$ 282,400$ 283,617$ 321,250$ Supplies & Services Sub-Total 3,160,419$ 3,461,250$ 3,509,393$ 3,439,599$ 3,866,775$ Total Operating Expenses 20,542,973$ 21,862,795$ 23,203,820$ 23,847,866$ 24,621,637$ Expenses (Non-Operating) Interest on Long Term Debt 1,171,439$ 1,625,865$ 2,009,777$ 1,799,416$ 1,815,317$ Other Expense 291,195$ 90,485$ 118,210$ 44,206$ 71,400$ Total Non-Operating Expenses 1,462,634$ 1,716,350$ 2,127,987$ 1,843,622$ 1,886,717$ Total Expenses 22,005,607$ 23,579,145$ 25,331,807$ 25,691,489$ 26,508,354$ Net Income (Loss) Before Capital Contributions 3,906,044$ 4,239,159$ 2,156,878$ 3,832,876$ 3,514,277$ Transfers (To)/From -$ (5,085,111)$ -$ -$ -$ Capital Contributions 364,564$ 98,241$ -$ 193,770$ -$ Net Income (Loss) Before Depreciation 4,270,608$ (747,711)$ 2,156,878$ 4,026,646$ 3,514,277$ Depreciation 4,669,579$ 5,359,086$ 5,332,175$ 5,455,724$ 5,598,640$ Income (Loss)(398,971)$ (6,106,797)$ (3,175,297)$ (1,429,078)$ (2,084,363)$ Debt Service Coverage 1.81 2.09 1.49 2.04 1.96 Yorba Linda Water District FY 2013/14 Budget Page 58 Total Revenue and Expenses (Water), Continued Yorba Linda Water District FY 2013/14 Budget Page 59 Total Revenue and Expenses (Sewer) FY 2010/11 Actual FY 2011/12 Actual FY 2012/13 Budget FY 2012/13 Forecast FY 2013/14 Budget Revenue (Operating): Sewer Charge Revenue 1,170,549$ 1,580,369$ 1,548,682$ 1,526,725$ 1,550,530$ Sewer Parcel Assessments 104,030$ 205,435$ 198,433$ 198,433$ 200,797$ Other Operating Revenue 54,074$ 94,408$ 57,808$ 47,862$ 36,675$ Total Operating Revenue 1,328,653$ 1,880,213$ 1,804,923$ 1,773,020$ 1,788,002$ Revenue (Non-Operating): Interest 21,630$ 23,659$ 20,000$ 16,443$ 12,000$ Other Non-Operating Revenue 6,424$ 267,186$ 4,175$ 4,384$ 7,950$ Total Non-Operating Revenue 28,054$ 290,845$ 24,175$ 20,828$ 19,950$ Total Revenue 1,356,707$ 2,171,058$ 1,829,098$ 1,793,848$ 1,807,952$ Expenses (Operating): Variable Water Costs (G.W., Import & Power)691$ -$ -$ -$ -$ Salary Related Expenses 829,941$ 853,396$ 922,488$ 772,215$ 932,669$ Reduction for Capital Project Labor (41,885)$ -$ (15,000)$ (6,594)$ (15,000)$ Salary Related Expenses Total 788,056$ 853,396$ 907,488$ 765,621$ 917,669$ Supplies & Services Communications 24,672$ 15,133$ 23,018$ 13,354$ 21,829$ Contractual Services 63,169$ 29,998$ 34,280$ 31,596$ 38,751$ Data Processing 11,688$ 9,056$ 9,474$ 9,307$ 11,951$ Dues & Memberships 2,933$ 4,782$ 4,583$ 5,179$ 5,314$ Fees & Permits 5,911$ 7,701$ 12,155$ 15,267$ 15,141$ Board Election 3,213$ -$ 3,612$ -$ -$ Insurance 19,975$ 16,668$ 19,544$ 19,339$ 20,947$ Materials 20,890$ 21,051$ 34,519$ 17,168$ 19,099$ District Activities, Emp Recognition 1,333$ 907$ 1,302$ 1,410$ 1,761$ Maintenance 42,419$ 134,185$ 71,405$ 114,547$ 121,908$ Non-Capital Equipment 22,534$ 16,800$ 18,269$ 15,724$ 16,417$ Office Expense 2,525$ 3,832$ 2,823$ 3,146$ 3,231$ Professional Services 224,786$ 34,310$ 36,882$ 29,269$ 39,525$ Training 3,293$ 4,320$ 4,747$ 6,413$ 6,197$ Travel & Conferences 1,949$ 1,294$ 3,418$ 1,405$ 4,062$ Uncollectible Accounts 1,344$ 1,162$ 2,730$ 1,750$ 1,750$ Utilities 8,250$ 5,123$ 5,950$ 6,687$ 7,100$ Vehicle Expenses 65,030$ 43,547$ 51,499$ 50,843$ 45,899$ Supplies & Services Sub-Total 525,914$ 349,869$ 340,209$ 342,403$ 380,879$ Total Operating Expenses 1,314,661$ 1,203,265$ 1,247,697$ 1,108,024$ 1,298,548$ Expenses (Non-Operating): Interest Expense 1,064$ 325$ 1,618$ -$ -$ Other Expense 115,380$ 18,499$ 6,000$ -$ 6,000$ Total Non-Operating Expenses 116,444$ 18,824$ 7,618$ -$ 6,000$ Total Expenses 1,431,105$ 1,222,089$ 1,255,315$ 1,108,024$ 1,304,548$ Net Income (Loss) Before Capital Contributions (74,398)$ 948,968$ 573,783$ 685,824$ 503,404$ Transfer (To)/From -$ 85,111$ -$ -$ -$ Capital Contributions 341,755$ 17,115,898$ -$ 157,049$ -$ Net Income Before Depreciation 267,357$ 18,149,977$ 573,783$ 842,873$ 503,404$ Depreciation 610,281$ 932,700$ 1,270,164$ 1,288,468$ 1,299,301$ Income (Loss)(342,924)$ 17,217,277$ (696,381)$ (445,595)$ (795,897)$ Yorba Linda Water District FY 2013/14 Budget Page 60 Total Revenue and Expenses (Sewer), Continued Yorba Linda Water District FY 2013/14 Budget Page 61 Total Revenues by Fund Total Revenues FY10/11 Actual FY 11/12 Actual FY 12/13 Budget FY 12/13 Forecast FY 13/14 Budget Water Revenue 24,417,449$ 27,818,304$ 27,488,685$ 29,524,365$ 30,022,631$ Sewer Revenue 1,356,707$ 2,171,058$ 1,829,098$ 1,793,848$ 1,807,952$ Total Operating Revenue:25,774,156$ 29,989,362$ 29,317,783$ 31,318,213$ 31,830,583$ $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 FY10/11 Actual FY 11/12 Actual FY 12/13 Budget FY 12/13 Forecast FY 13/14 Budget Total Revenues Water Revenue Sewer Revenue Yorba Linda Water District FY 2013/14 Budget Page 62 Total Expenses by Fund FY10/11 Actual FY 11/12 Actual FY 12/13 Budget FY 12/13 Forecast FY 13/14 Budget Water $22,005,607 $23,579,145 $25,331,807 $25,691,489 $26,508,354 Sewer $1,431,105 $1,222,089 $1,255,315 $1,108,024 $1,304,548 Total Operating Expenses:$23,436,712 $24,801,234 $26,587,122 $26,799,513 $27,812,902 **Depreciation Not Included Yorba Linda Water District FY 2013/14 Budget Page 63 Total Expenses by Category Yorba Linda Water District FY 2013/14 Budget Page 64 Variable Water Cost Expenses Note: The Variable Water Costs category is the largest component of the FY 2013/14 Budgeted Operating Costs and includes imported and groundwater purchases, as well as power costs associated with pumping water throughout the District. These costs are listed in the Total Water Revenues and Expenses and Water Revenues and Expenses schedules on pages 55 and 56, respectively. Yorba Linda Water District FY 2013/14 Budget Page 65 Reserves & Funding Sources Restriction Category Balance Ending 6/30/2012 Balance Ending 4/30/2013 Forecasted Balance Ending 6/30/2013 Additions (Deductions) FY 2013/14 Budgeted Balances Ending 6/30/2014 Water (Operating): Operating Fund Operating Reserve 3,632,086 3,276,917 3,300,000 885,678 4,185,678 Reserve for Debt Service Debt Service Payment 1,021,981 796,836 1,384,000 1,339,509 2,723,509 Employee Liabilities OPEB and Comp Abs.- - - - - Water (Capital) Water Emergency Emergency Reserve 1,000,992 1,009,086 1,000,000 - 1,000,000 Water Capital Projects Capital Reserve*11,248,023 7,770,376 7,500,000 (532,910) 6,967,090 COP Bond 2008 Capital Reserve - - - - - COP Bond 2008 - Reserve Restricted from Use **2,175,035 2,151,093 2,150,000 - 2,150,000 Water Maintenance Capital Reserve 200,000 200,715 200,000 - 200,000 Sewer (Operating): Operating Fund Operating Reserve 260,007 292,220 300,000 127,501 427,501 Employee Liabilities OPEB and Comp Abs.- - - - - Sewer (Capital) Sewer Emergency Emergency Reserve 999,991 1,008,077 1,000,000 - 1,000,000 Sewer Capital Projects Capital Reserve 1,206,979 1,123,213 1,174,204 302,903 1,477,107 Total of Funds 21,745,094$ 17,628,533$ 18,008,204$ 2,122,681$ 20,130,885$ *Amount includes an assumption of $2,266,000 borrowed against a line of credit in FY 12/13 and $4,645,000 in FY 13/14 **Amount has been set aside by the fiscal agent in a reserve fund, and is unable to be spent down Funding Sources Yorba Linda Water District FY 2013/14 Budget Page 66 Reserves & Funding Sources, Continued Yorba Linda Water District FY 2013/14 Budget Page 67 Five Year Financial Projections (FY 2014-2018) Narrative This financial projection is designed to provide a general understanding of h ow revenues and expenditures are expected to influence the District over the next five years. Revenue and expenditure projections are reviewed in relation to their effect on funding capital projects, reserve levels, and operating fund balances. The Distri ct will update its projections on an annual basis in order to plan for the future and determine recommended rates. The projection factors in debt ratios, reserve balances, projected rate increases, cost increases and growth projections. The assumptions in the following projections include:  Costs passed-through for all variable water cost rate increases  Annual increases on the water commodity rate of 2.5% or 3%  Annexation to OCWD in FY 14/15  $7 million borrowing through a Line of Credit in FY 12/13 at an int erest rate of One Month LIBOR + 0.90%, with renewals every 3 years  Principal repayment deferred to begin in FY 18/19  A 0.04% annual growth in customer accounts  No change to the sewer rate, but an alignment to address a disparity in our rates in FY 2015/16  Average interest earnings at 0.5% - 1.0%  1% growth in property taxes  2% annual increase in other non-operating revenue other than annexation amortization  3% - 5% annual increases in variable water costs  5.0% annual increases in salary related expenses  3-8% annual increases in supplies and services expenses with the following exceptions:  Board Election expense only budgeted every other year  Utilities expense budgeted to increase 5% annually  Interest expense equal to those scheduled by the existing bonds and assumed interest rate of 1.5-2.0% for Line of Credit  No change to future budgets for other non-operating expenses  Depreciation increases based on the projected completion of CIP jobs The District is still in the middle of an aggressive CIP spending plan th at was created with the issuance of the 2008 Certificates of Participation. The following projections include the completion of that spending plan. Yorba Linda Water District FY 2013/14 Budget Page 68 Five Year Financial Projections Water & Sewer FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Revenue (Operating): Water Revenue (Residential)16,217,590$ 16,671,541$ 17,338,876$ 18,086,654$ 18,683,665$ Water Revenue (Commercial & Fire Det.)2,020,223$ 2,076,772$ 2,159,902$ 2,253,052$ 2,327,422$ Water Revenue (Landscape/Irrigation)4,794,156$ 4,928,351$ 5,125,625$ 5,346,679$ 5,523,164$ Service Charges 4,468,716$ 5,009,840$ 5,844,707$ 6,726,646$ 7,637,940$ Sewer Charge Revenue 200,797$ 200,797$ 133,702$ 133,702$ 133,702$ Sewer Parcel Assessments 36,675$ 36,675$ 36,675$ 36,675$ 36,675$ Other Operating Revenue 717,749$ 717,749$ 717,749$ 717,749$ 717,749$ Total Operating Revenue 28,455,906$ 29,641,725$ 31,357,236$ 33,301,157$ 35,060,317$ Revenue (Non-Operating): Interest 87,000$ 122,644$ 142,349$ 184,171$ 238,796$ Property Tax 1,264,672$ 1,277,319$ 1,290,092$ 1,302,993$ 1,316,023$ Other Non-Operating Revenue 509,150$ 510,354$ 511,582$ 512,835$ 514,112$ Total Non-Operating Revenue 1,860,822$ 1,910,317$ 1,944,023$ 1,999,999$ 2,068,931$ Total Revenue 30,316,728$ 31,552,042$ 33,301,259$ 35,301,155$ 37,129,248$ Expenses (Operating): Variable Water Costs 13,767,658$ 13,290,809$ 14,052,319$ 14,163,929$ 14,877,435$ Salary Related Expenses 7,904,873$ 8,300,116$ 8,715,122$ 9,150,878$ 9,608,422$ Supplies & Services: Communications 305,200$ 329,616$ 355,985$ 373,785$ 384,998$ Contractual Services 542,840$ 586,267$ 633,169$ 664,827$ 684,772$ Data Processing 170,730$ 184,388$ 199,139$ 209,096$ 215,369$ Dues & Memberships 72,335$ 78,122$ 84,372$ 88,590$ 91,248$ Fees & Permits 167,365$ 180,754$ 195,215$ 204,975$ 211,125$ Board Election -$ 50,000$ -$ 55,000$ -$ Insurance 299,240$ 314,202$ 329,912$ 346,408$ 363,728$ Materials 587,775$ 634,797$ 685,581$ 719,860$ 741,456$ District Activities, Emp Recognition 25,150$ 27,162$ 29,335$ 30,802$ 31,726$ Maintenance 479,150$ 517,482$ 558,881$ 586,825$ 604,429$ Non-Capital Equipment 137,950$ 148,986$ 160,905$ 168,950$ 174,019$ Office Expense 46,150$ 49,842$ 53,829$ 56,521$ 58,216$ Professional Services 815,210$ 880,427$ 950,861$ 998,404$ 1,028,356$ Training 63,160$ 68,213$ 73,670$ 77,353$ 79,674$ Travel & Conferences 52,450$ 56,646$ 61,178$ 64,237$ 66,164$ Uncollectible Accounts 25,000$ 27,000$ 29,160$ 30,618$ 31,537$ Utilities 90,800$ 98,064$ 105,909$ 111,205$ 114,541$ Vehicle Equipment 367,149$ 396,521$ 428,243$ 449,655$ 463,144$ Supplies & Services Sub-Total 4,247,654$ 4,628,489$ 4,935,342$ 5,237,109$ 5,344,501$ Total Operating Expenses 25,920,185$ 26,219,414$ 27,702,783$ 28,551,916$ 29,830,358$ Expenses (Non-Operating): Interest Expense 1,815,317$ 1,816,865$ 1,816,559$ 1,776,884$ 1,734,309$ Other Expense 77,400$ 77,400$ 77,400$ 77,400$ 77,400$ Total Non-Operating Expenses 1,892,717$ 1,894,265$ 1,893,959$ 1,854,284$ 1,811,709$ Total Expenses 27,812,902$ 28,113,679$ 29,596,742$ 30,406,200$ 31,642,067$ Net Income (Loss) Before Capital Contributions 2,503,826$ 3,438,362$ 3,704,517$ 4,894,955$ 5,487,181$ Capital Contributions -$ -$ -$ -$ -$ Net Income (Loss) Before Depreciation 2,503,826$ 3,438,362$ 3,704,517$ 4,894,955$ 5,487,181$ Depreciation 6,897,941$ 6,659,593$ 6,575,906$ 6,156,738$ 6,150,904$ Income (Loss)(4,394,115)$ (3,221,231)$ (2,871,389)$ (1,261,783)$ (663,723)$ Yorba Linda Water District FY 2013/14 Budget Page 69 Five Year Financial Projections Water FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Revenue (Operating): Water Revenue (Residential)16,217,590$ 16,671,541$ 17,338,876$ 18,086,654$ 18,683,665$ Water Revenue (Commercial & Fire Det.)2,020,223$ 2,076,772$ 2,159,902$ 2,253,052$ 2,327,422$ Water Revenue (Landscape/Irrigation)4,794,156$ 4,928,351$ 5,125,625$ 5,346,679$ 5,523,164$ Service Charges 4,468,716$ 5,009,840$ 5,844,707$ 6,726,646$ 7,637,940$ Other Operating Revenue 681,074$ 694,695$ 708,589$ 722,761$ 737,216$ Total Operating Revenue 28,181,759$ 29,381,199$ 31,177,699$ 33,135,793$ 34,909,407$ Revenue (Non-Operating): Interest 75,000$ 108,967$ 120,708$ 150,054$ 202,027$ Property Tax 1,264,672$ 1,277,319$ 1,290,092$ 1,302,993$ 1,316,023$ Other Non-Operating Revenue 501,200$ 502,404$ 503,632$ 504,885$ 506,162$ Total Non-Operating Revenue 1,840,872$ 1,888,690$ 1,914,432$ 1,957,932$ 2,024,212$ Total Revenue 30,022,631$ 31,269,889$ 33,092,131$ 35,093,725$ 36,933,619$ Expenses (Operating): Variable Water Costs 13,767,658$ 13,290,809$ 14,052,319$ 14,163,929$ 14,877,435$ Salary Related Expenses 6,987,204$ 7,336,564$ 7,703,392$ 8,088,562$ 8,492,990$ Supplies & Services: Communications 283,371$ 306,041$ 330,524$ 347,050$ 357,462$ Contractual Services 504,089$ 544,416$ 587,970$ 617,368$ 635,889$ Data Processing 158,779$ 171,481$ 185,200$ 194,460$ 200,293$ Dues & Memberships 67,021$ 72,382$ 78,173$ 82,081$ 84,544$ Fees & Permits 152,224$ 164,402$ 177,554$ 186,432$ 192,025$ Board Election -$ 46,500$ -$ 51,150$ -$ Insurance 278,293$ 292,208$ 306,818$ 322,159$ 338,267$ Materials 568,676$ 614,170$ 663,303$ 696,469$ 717,363$ District Activities, Emp Recognition 23,390$ 25,261$ 27,282$ 28,646$ 29,505$ Maintenance 357,243$ 385,822$ 416,688$ 437,522$ 450,648$ Non-Capital Equipment 121,534$ 131,256$ 141,757$ 148,845$ 153,310$ Office Expense 42,920$ 46,353$ 50,061$ 52,564$ 54,141$ Professional Services 775,685$ 837,740$ 904,759$ 949,997$ 978,497$ Training 56,963$ 61,520$ 66,442$ 69,764$ 71,857$ Travel & Conferences 48,389$ 52,260$ 56,440$ 59,262$ 61,040$ Uncollectible Accounts 23,250$ 25,110$ 27,119$ 28,475$ 29,329$ Utilities 83,700$ 90,396$ 97,628$ 102,509$ 105,584$ Vehicle Equipment 321,250$ 346,950$ 374,706$ 393,441$ 405,245$ Supplies & Services Sub-Total 3,866,775$ 4,214,268$ 4,492,423$ 4,768,194$ 4,864,999$ Total Operating Expenses 24,621,637$ 24,841,641$ 26,248,134$ 27,020,685$ 28,235,423$ Expenses (Non-Operating): Interest Expense 1,815,317$ 1,816,865$ 1,816,559$ 1,776,884$ 1,734,309$ Other Expense 71,400$ 71,400$ 71,400$ 71,400$ 71,400$ Total Non-Operating Expenses 1,886,717$ 1,888,265$ 1,887,959$ 1,848,284$ 1,805,709$ Total Expenses 26,508,354$ 26,729,906$ 28,136,093$ 28,868,969$ 30,041,132$ Net Income (Loss) Before Depreciation 3,514,277$ 4,539,983$ 4,956,038$ 6,224,756$ 6,892,487$ Depreciation 5,598,640$ 6,261,132$ 6,418,632$ 6,671,132$ 6,812,132$ Income (Loss)(2,084,363)$ (1,721,149)$ (1,462,594)$ (446,376)$ 80,355$ Debt Service Coverage 1.94 2.30 2.44 2.89 3.13 Yorba Linda Water District FY 2013/14 Budget Page 70 Five Year Financial Projections Sewer FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2016/17 Budget Revenue (Operating): Sewer Charge Revenue 1,550,530$ 1,565,506$ 1,697,143$ 1,701,940$ 1,706,757$ Sewer Parcel Assessments 200,797$ 200,797$ 133,702$ 133,702$ 133,702$ Other Operating Revenue 36,675$ 36,675$ 36,675$ 36,675$ 36,675$ Total Operating Revenue 1,788,002$ 1,802,978$ 1,867,520$ 1,872,317$ 1,877,134$ Revenue (Non-Operating): Interest 12,000$ 13,677$ 21,641$ 34,117$ 36,769$ Other Non-Operating Revenue 7,950$ 7,950$ 7,950$ 7,950$ 7,950$ Total Non-Operating Revenue 19,950$ 21,627$ 29,591$ 42,067$ 44,719$ Total Revenue 1,807,952$ 1,824,605$ 1,897,111$ 1,914,384$ 1,921,853$ Expenses (Operating): Salary Related Expenses 917,669$ 963,552$ 1,011,730$ 1,062,316$ 1,115,432$ Supplies & Services: Communications 21,829$ 23,575$ 25,461$ 26,734$ 27,536$ Contractual Services 38,751$ 41,851$ 45,199$ 47,459$ 48,883$ Data Processing 11,951$ 12,907$ 13,940$ 14,637$ 15,076$ Dues & Memberships 5,314$ 5,740$ 6,199$ 6,509$ 6,704$ Fees & Permits 15,141$ 16,352$ 17,661$ 18,544$ 19,100$ Board Election -$ 3,500$ -$ 3,850$ -$ Insurance 20,947$ 21,994$ 23,094$ 24,249$ 25,461$ Materials 19,099$ 20,627$ 22,277$ 23,391$ 24,093$ District Activities, Emp Recognition 1,761$ 1,901$ 2,053$ 2,156$ 2,221$ Maintenance 121,908$ 131,660$ 142,193$ 149,303$ 153,782$ Non-Capital Equipment 16,417$ 17,730$ 19,148$ 20,106$ 20,709$ Office Expense 3,231$ 3,489$ 3,768$ 3,956$ 4,075$ Professional Services 39,525$ 42,687$ 46,102$ 48,407$ 49,859$ Training 6,197$ 6,692$ 7,228$ 7,589$ 7,817$ Travel & Conferences 4,062$ 4,386$ 4,737$ 4,974$ 5,123$ Uncollectible Accounts 1,750$ 1,890$ 2,041$ 2,143$ 2,208$ Utilities 7,100$ 7,668$ 8,281$ 8,696$ 8,956$ Vehicle Equipment 45,899$ 49,571$ 53,537$ 56,213$ 57,900$ Supplies & Services Sub-Total 380,879$ 414,221$ 442,919$ 468,915$ 479,502$ Total Operating Expenses 1,298,548$ 1,377,774$ 1,454,649$ 1,531,232$ 1,594,934$ Expenses (Non-Operating): Other Expense 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Total Non-Operating Expenses 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Total Expenses 1,304,548$ 1,383,774$ 1,460,649$ 1,537,232$ 1,600,934$ Net Income (Loss) Before Capital Contributions 503,404$ 440,831$ 436,462$ 377,152$ 320,919$ Capital Contributions -$ -$ -$ -$ -$ Net Income (Loss) Before Depreciation 503,404$ 440,831$ 436,462$ 377,152$ 320,919$ Depreciation 1,299,301$ 1,344,701$ 1,344,701$ 1,344,701$ 1,344,701$ Income (Loss)(795,897)$ (903,870)$ (908,239)$ (967,549)$ (1,023,782)$ Yorba Linda Water District FY 2013/14 Budget Page 71 Five Year Financial Projections Reserve Balances- Water FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Operating Reserves Ending Balance 4,185,678$ 4,223,079$ 4,462,183$ 4,593,516$ 4,800,022$ Minimum Balance 1,969,731$ 1,987,331$ 2,099,851$ 2,161,655$ 2,258,834$ Maximum Balance 4,185,678$ 4,223,079$ 4,462,183$ 4,593,516$ 4,800,022$ Capital Replacement Reserves Ending Balance 6,967,090$ 5,011,689$ 2,326,535$ 2,961,876$ 2,294,945$ Minimum Balance*1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$ Maintenance Reserves Ending Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Minimum Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Emergency Reserves Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Minimum Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Debt Service Reserves Ending Balance 2,723,509$ 2,723,509$ 2,721,559$ 2,716,884$ 2,714,309$ Minimum Balance 2,723,509$ 2,723,509$ 2,721,559$ 2,716,884$ 2,714,309$ COP Reserves Ending Balance 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ Minimum Balance 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ Employee Benefit Liability Reserves Ending Balance 93,000$ 186,000$ 279,000$ 372,000$ 465,000$ Minimum Balance*93,000$ 93,000$ 93,000$ 93,000$ 93,000$ Total Water Reserves 0$ 0$ 0$ 0$ Ending Balance 17,316,373$ 15,491,373$ 13,136,373$ 13,991,372$ 13,621,372$ Minimum Balance 9,953,336$ 9,970,936$ 10,081,506$ 10,138,635$ 10,233,239$ *Minimum Balance is actually minimum annual funding Yorba Linda Water District FY 2013/14 Budget Page 72 Five Year Financial Projections Reserve Balances- Sewer FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Operation Reserves Ending Balance 300,000$ 462,821$ 475,890$ 488,909$ 499,738$ Minimum Balance 207,828$ 217,798$ 223,948$ 230,075$ 235,171$ Capital Replacement Reserves Ending Balance 1,477,107$ 1,344,827$ 1,354,428$ 1,308,620$ 1,204,918$ Minimum Balance*345,000$ 345,000$ 345,000$ 345,000$ 345,000$ Emergency Reserves Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Minimum Balance 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ Total Sewer Reserves 0$ 0$ (0)$ (0)$ Ending Balance 2,777,107$ 2,807,648$ 2,830,318$ 2,797,529$ 2,704,656$ Minimum Balance 802,828$ 812,798$ 818,948$ 825,075$ 830,171$ *Minimum Balance is actually minimum annual funding Yorba Linda Water District FY 2013/14 Budget Page 73 Fund Balance History (FYE 2005-2013) Fiscal Year Water Sewer Ending Funds Fund Total Fund Balance @ 6/30/2009 124,012,838$ 25,406,475$ 149,419,313$ 06/30/10 Net Income Before Capital Contributions (1,242,250)(317,140)(1,559,390) Capital Contributions 5,973,683 733,715 6,707,398 Fund Balance @ 6/30/2010 128,744,271$ 25,823,050$ 154,567,321$ 06/30/11 Net Income Before Capital Contributions (763,535)(684,679)(1,448,214) Capital Contributions 364,564 341,755 706,319 Prior Period Adjustment - 410,247 410,247 Fund Balance @ 6/30/2011 128,345,300$ 25,890,373$ 154,235,673$ 06/30/12 Net Income Before Capital Contributions (1,119,927)(287,672)(1,407,599) Capital Contributions 98,241 17,115,898 17,214,139 Transfers In (Out)(85,111)85,111 0 Extraordinary Item (5,000,000)- (5,000,000) Fund Balance @ 6/30/2012 122,238,503$ 42,803,710$ 165,042,213$ 06/30/13 Revenue (Operating): Water Sales 26,749,913 - 26,749,913 Sewer Revenues - 1,725,158 1,725,158 Other Operating Revenue 667,922 47,862 715,784 Interest 97,861 16,443 114,304 Property Taxes 1,249,059 - 1,249,059 Other Non-Operating Revenue 759,610 4,384 763,994 Total Estimated Revenues FY2013 29,524,365 1,793,848 31,318,213 Expenses (Operating): Variable Water Costs (G.W., Import & Power)14,335,494 - 14,335,494 Salary Related Expenses 6,072,773 765,621 6,838,394 Supplies & Services 3,439,599 342,403 3,782,002 Depreciation 5,455,724 1,288,468 6,744,192 Interest on Long Term Debt 1,799,416 - 1,799,416 Other Expense 44,206 - 44,206 Total Estimated Expenses FY2013 31,147,213 2,396,492 33,543,705 Net Income Before Capital Contributions (1,622,848)(602,644)(2,225,492) Capital Contributions 193,770 157,049 350,819 Net Income(Loss) FY2013 (1,429,078)(445,595)(1,874,673) Estimated Fund Balance @ 6/30/2013 120,809,424$ 42,358,115$ 163,167,539$ 06/30/14 Revenue (Operating): Water Sales 27,500,685 - 27,500,685 Sewer Revenues - 1,751,327 1,751,327 Other Operating Revenue 681,074 36,675 717,749 Interest 75,000 12,000 87,000 Property Taxes 1,264,672 - 1,264,672 Other Non-Operating Revenue 501,200 7,950 509,150 Total Estimated Revenues FY2014 30,022,631 1,807,952 31,830,583 Expenses (Operating): Variable Water Costs (G.W., Import & Power)13,767,658 - 13,767,658 Salary Related Expenses 6,987,204 917,669 7,904,873 Supplies & Services 3,866,775 380,879 4,247,654 Depreciation 5,598,640 1,299,301 6,897,941 Interest on Long Term Debt 1,815,317 - 1,815,317 Other Expense 71,400 6,000 77,400 Total Estimated Expenses FY2014 32,106,994 2,603,849 34,710,844 Net Income Before Capital Contributions (2,084,363)(795,897)(2,880,261) Net Income(Loss) FY2014 (2,084,363)(795,897)(2,880,261) Estimated Fund Balance @ 6/30/2014 118,725,061$ 41,562,217$ 160,287,278$ Yorba Linda Water District FY 2013/14 Budget Page 74 Debt Administration The District’s debt rating from Fitch is “AA”. The District has no formal debt policy and no legal debt limit; however, the District’s future borrowing capacity is limited by the debt coverage ratio required by existing bond covenants. The covenants require that the coverage exceed 1.1; the District’s budgeted ratio is 1.96 for Fiscal Year 2014. This District’s Fiscal Year 2013 budgeted debt service obligation ($2,712,659) is related to its two existing debt issuances. Use of proceeds and the corresponding principal balance of each are as follows: Debt service requirements for the District’s Certificates of Participation are as follows: Year of Issuance Use of Proceeds Principal Balance as of June 2013 2008 COP COP funds are being issued to finance certain capital improvements, to fund a reserve fund, and to pay certain costs of delivery. $ 32,070,000 2012A Refunding Bond Refunding BOnds funds are being issued to finance certain capital improvements, to fund a reserve fund, and to pay certain costs of delivery. 8,330,000 40,400,000$ Year Principal Interest Total 2014 965,000$ 1,747,659$ 2,712,659$ 2015 1,010,000$ 1,713,509$ 2,723,509$ 2016-2019 4,415,000$ 6,456,260$ 10,871,260$ 2020-2024 6,575,000$ 6,979,956$ 13,554,956$ 2025-2028 6,345,000$ 4,472,856$ 10,817,856$ 2029-2033 9,630,000$ 3,851,684$ 13,481,684$ 2034-2039 11,460,000$ 1,719,219$ 13,179,219$ Total 40,400,000$ 26,941,143$ 67,341,143$ Yorba Linda Water District FY 2013/14 Budget Page 75 Employees Per Capita * Note: Employees per Capita is for fiscal year 2012/13 and is measured in number of employees per thousand customers 0.00 0.50 1.00 1.50 2.00 2.50 Yorba Linda WD South Coast WD Serrano WD Walnut Valley WD Mesa Water 1.09 2.21 2.00 0.54 0.53 Employees per Capita Yorba Linda Water District FY 2013/14 Budget Page 76 Residential Meter Charge Comparison Note: Approximately 93% of the District’s customer base has a 1 inch or smaller meter. The charges for all agencies are current as of FY 12/13. Yorba Linda Water District FY 2013/14 Budget Page 77 CAPITAL PROJECTS Yorba Linda Water District FY 2013/14 Budget Page 78 (Maintenance Operator Flushing a Hydrant) Yorba Linda Water District FY 2013/14 Budget Page 79 Capital Improvement Plan Project #Project Description Total Project Budget (12/13) Increase/ (Decrease) Total Project Budget (13/14) Expenditures Through 6/30/2012 FY 12/13 Expenditure Forecast 2008-17B YL Blvd BPS (Booster Pump Station)2,650,000$ 465,000$ 3,115,000$ 112,924$ 927,076$ 2009-22 #21 S & W Well Project (Well No. 21)2,300,000$ (550,000)$ 1,750,000$ 33,337$ 36,663$ 2009-22 #22 S & W Well Project (Well No. 22)2,500,000$ -$ 2,500,000$ 2,029$ 2,971$ 2010-02 Lakeview Grade Separation 80,000$ 520,000$ 600,000$ 82,176$ 217,824$ -Lakeview Landscaping 50,000$ -$ 50,000$ -$ -$ 2010-11B Fairmont BPS Upgrade 5,500,000$ 800,000$ 6,300,000$ 11,103$ 148,897$ 2011-20 2012 Waterline Project 1,170,000$ 475,000$ 1,645,000$ 41,336$ 1,103,664$ 2012-13 Yorba Linda High School Park -$ 370,000$ 370,000$ -$ 55,000$ Rehabilitation & Restoration -Meter Replacement Program 350,000$ 2,150,000$ 2,500,000$ -$ -$ -Future Pipeline Project 2,560,000$ 130,000$ 2,690,000$ -$ -$ New Elk Mountain Booster Surge Tank -$ 100,000$ 100,000$ -$ -$ New Timber Ridge BPS Rehabilitiation -$ 250,000$ 250,000$ -$ -$ New Richfield Campus Spoils -$ 150,000$ 150,000$ -$ -$ New Lakeview Booster Piping -$ 100,000$ 100,000$ -$ -$ New Future PRS Rehabilitation -$ 1,430,000$ 1,430,000$ -$ -$ -Annual Routine Capital R&R 5,830,000$ (4,310,000)$ 1,520,000$ -$ -$ R & R Subtotal 8,740,000$ -$ 8,740,000$ -$ -$ TOTAL 22,990,000$ 2,080,000$ 25,070,000$ 282,905$ 2,492,095$ Project #Projects Completed in FY 12/13 Total Project Budget (12/13) Over/(Under) Budget Actual Project Total Expenditures Through 6/30/2012 FY 12/13 Expenditure Forecast 2007-11 Well No. 20 2,300,000$ (300,000)$ 2,000,000$ 1,879,459$ 120,541$ 2008-14 Highland BPS Upgrade*6,100,000$ (127,000)$ 5,973,000$ 5,676,955$ 296,045$ 2008-17 YL Blvd Pipeline*2,250,000$ -$ 2,250,000$ 375,426$ 1,874,574$ 2009-15 Computerized Maint & Mgmt Syst.410,000$ (62,500)$ 347,500$ 325,109$ 22,391$ 2010-11 Fairmont Reservoir Site Improvement*500,000$ (130,000)$ 370,000$ 287,676$ 82,324$ 2011-08 Press. Reg. Stations Upgrade*1,000,000$ (120,000)$ 880,000$ 110,036$ 769,964$ 2011-16S Green Crest Dr. Sewer Lift Stn Upgr*140,000$ 30,000$ 170,000$ 97,583$ 72,417$ 2011-23S Sewer Facilities GIS Conversion*22,500$ 8,000$ 30,500$ 24,132$ 6,368$ 2012-15 Richfield Chlorine System PLC*-$ 24,000$ 24,000$ -$ 24,000$ -Disinf. Bstr. Sta. at Hidden Hills Res.**200,000$ (200,000)$ -$ -$ -$ -GIS - Phase II**97,000$ (97,000)$ -$ -$ -$ -GIS - Phase II (Sewer)**36,000$ (36,000)$ -$ -$ -$ TOTAL 13,055,500$ (1,010,500)$ 12,045,000$ 8,776,376$ 3,268,624$ GRAND TOTAL 36,045,500$ 9,059,281$ 5,760,719$ *Project Due to be Completed and Capitalized in FY 12/13 **Project Moved to Vehicle Equipment & Capital Outlay Yorba Linda Water District FY 2013/14 Budget Page 80 Capital Improvement Plan, Continued FY 13/14 Budget FY 14/15 Budget FY 15/16 Budget FY 16/17 Budget FY 17/18 Budget 5 Year Future Projected Budgets 2,075,000$ -$ -$ -$ -$ 2,075,000$ 1,000,000$ 680,000$ -$ -$ -$ 1,680,000$ -$ -$ -$ 245,000$ 2,250,000$ 2,495,000$ 300,000$ -$ -$ -$ -$ 300,000$ -$ 50,000$ -$ -$ -$ 50,000$ 500,000$ 2,500,000$ 3,140,000$ -$ -$ 6,140,000$ 500,000$ -$ -$ -$ -$ 500,000$ 20,000$ 295,000$ -$ -$ -$ 315,000$ 50,000$ -$ 1,200,000$ 1,250,000$ -$ 2,500,000$ 50,000$ 800,000$ 160,000$ 1,500,000$ 180,000$ 2,690,000$ 100,000$ -$ -$ -$ -$ 100,000$ 50,000$ 200,000$ -$ -$ -$ 250,000$ -$ 150,000$ -$ -$ -$ 150,000$ -$ -$ -$ 100,000$ -$ 100,000$ -$ 60,000$ 600,000$ 70,000$ 700,000$ 1,430,000$ -$ -$ -$ -$ 1,520,000$ 1,520,000$ 250,000$ 1,210,000$ 1,960,000$ 2,920,000$ 2,400,000$ 8,740,000$ 4,645,000$ 4,735,000$ 5,100,000$ 3,165,000$ 4,650,000$ 22,295,000$ Yorba Linda Water District FY 2013/14 Budget Page 81 Capital Projects Summary 2012 Waterline Replacement Project Total Project Budget: $1,645,000 Proposed FY 13/14 Budget: $500,000 The project consists of replacing old waterlines and appurtenances in seven locations, ranging from 200 to 3,000 feet, with a total replacement length of approximately 6,700 feet. These locations were identified in the Asset Management Plan and the Capital Improvement Plan as requiring near-term replacement due to age and condition of the pipelines. The project was divided into two phases for construction. Phase 1, a replacement pipeline in Plumosa Drive, has been completed. Phase 2 work is under construction and planned for completion in FY 13/14. Yorba Linda Blvd Booster Pump Station Project Total Project Budget: $3,115,000 Proposed FY 13/14 Budget: $2,075,000 The project consists of replacing the existing Palm Avenue Booster Pump Station with a three-pump 5,000-gpm capacity new pump station at Gun Club Road and Yorba Linda Blvd. The project will make it possible to deliver more groundwater to the easterly portion of the District’s service area. Construction of the new pump station began in FY12/13 and will be complete in FY 13/14. Projected costs in FY 12/13 and FY 13/14 are estimated to be $927,000 and $2,075,000, respectively. Well #21 Project Total Project Budget: $1,750,000 Proposed FY 13/14 Budget: $1,000,000 Work began in FY 12/13 on plans for the drilling of the ne w well. In FY13/14, a test well will be drilled to confirm the quantity and quality of water expected from a well at that site. If the findings are positive, the test well will be drilled out and completed with a steel casing, for production testing. Budgeted for FY13/14 is the drilling of the well and the preparation of plans for well equipping at an estimated cost of $800,000. Budgeted for FY 14/15 is construction of wellhead facilities and a discharge pipeline at an estimated cost of $880,000. Fairmont Pump Station Upgrade Project Total Project Budget: $6,300,000 Proposed FY 13/14 Budget: $500,000 The project is the refurbishment and upgrading of the Fairmont site. The existing 37 - year old booster station will be demolished and its two booster pumps will be replaced by six, with two each pumping to three different pressure zones. A new building will be constructed to house the pumps, as well as facilities for operations and maintenance, and for equipment and material storage. The project will also in clude refurbishment of elements of the Fairmont Reservoir. Completed in FY11/12 was the replacement of valves inside the reservoir. Planned for FY12/13 is completion of design plans at an estimated cost of $500,000. Construction is planned to follow, at an estimated cost of $3 million in FY 13/14 and $2.2 million in FY 14/15. Part of the cost of the improvements will be offset by developer-provided funding. Yorba Linda Water District FY 2013/14 Budget Page 82 Capital Projects Summary, Continued Lakeview Grade Separation Project Total Project Budget: $600,000 Proposed FY 13/14 Budget: $300,000 The Orange County Transportation Authority (OCTA) is the lead agency for a planned Lakeview Avenue bridge over Orangethorpe Avenue and the adjacent BNSF Railroad tracks. As part of the project, it will be necessary to replace and relocate the District’s water lines currently in Lakeview Avenue through the project area. The District has been in discussions with OCTA as to how much of the total cost of the relocation and replacement of its waterlines and appurtenances the District must pay for, estimated at a cost in the range of $1 million. During this process, the District has been pursuing means to minimize the project cost it will bear. It is anticipated that OCTA and the District will reach a decision on the project cost share to be borne by each by early in FY 12/13, and that construction of the pipeline relocation work will begin late in FY 12/13, with completion by FY 14/15. Yorba Linda High School Park Pipeline Relocation Project Total Project Budget: $370,000 Proposed FY 13/14 Budget: $20,000 The proposed Yorba Linda High School Park, within Placentia Yorba Linda Unified School District's (PYLUSD) property located south of Yorba Linda High School, includes proposed grading with nearly 18-feet of fill over our existing 39-inch diameter Bryant Cross Feeder (BCF) pipeline. The BCF pipeline will be unable to support the additional fill, and must be relocated. Per the Pre-Annexation Agreement with PYLUSD, the District is responsible for the design and construction costs for relocating approximately 530 lineal feet of the 39" BCF pipeline, at an estimated cost of $370,000. Meter Replacement Program (R&R) Total Program Budget: $2,500,000 Proposed FY 13/14 Budget: $50,000 This consists of replacing old meters on the eastern side of the District and converting the manually-read meters with radio-read/drive-by technology. The amount budgeted for FY 13/14 includes the cost of replacing still functioning, but aged meters in strategic locations on the eastern side of the District. The meters removed from service will be tested in house to determine the accuracy of the meters and amount of water loss occurring. This information will inform the District of areas where more water loss is occurring, and guide staff to replace those areas in a more timely manner. Future Pipeline Replacement Project (R&R) Total Project Budget: $2,690,000 Proposed FY 13/14 Budget: $50,000 The District has pipeline installed in the early 1900s, identified in the Asset Management Plan with leak history that needs to be replaced. To reduce costs, staff will design, in - house, approximately 2,000 feet of the more critical pipeline replacement reaches during FY 13/14, with pipeline construction in FY 14/15. The remainder of waterline replacement will be designed and installed during subsequent fiscal years. Yorba Linda Water District FY 2013/14 Budget Page 83 Capital Projects Summary, Continued Elk Mountain Booster Station Surge Tank (R&R) Total Project Budget: $100,000 Proposed FY 13/14 Budget: $100,000 Replace the 23-year old surge tank with a new tank. The existing tank and air compressor can’t be repaired or maintained and was never certified. Because it’s older and uncertified, our insurance carrier will not provide coverage if damage is created because this facility did not properly work. The tank is located near the Elk Mountain Booster Pump Station northeast of Camino De Bryant and Elk Mountain Way. Timber Ridge Booster Station Rehabilitation (R&R) Total Project Budget: $250,000 Proposed FY 13/14 Budget: $50,000 Timber Ridge Booster Station is undersized and needs additional emergency pumping capacity. Staff will evaluate the least cost method to install a new gas engine enclosed with a new building, or install a new electric generator and possibly upsizing one or more of the existing pumps. Yorba Linda Water District FY 2013/14 Budget Page 84 Page Intentionally Left Blank Yorba Linda Water District FY 2013/14 Budget Page 85 Vehicle Equipment and Capital Outlay (FY 2013/14) Department / Item Amount Board of Directors None Administration None Engineering Construction F150 4X4 Truck Replacement 26,000$ F150 Super Cab Truck Replacement 26,000$ Total Vehicle Equipment & Capital Outlay- Engineering 52,000$ Finance Meter Reading (1) Handheld Meter Reading Units 6,000$ MXU and Register Replacement Program 33,000$ Total Vehicle Equipment & Capital Outlay- Finance 39,000$ Human Resources None IT GIS GIS - Phase II (Asbuilt Lining, Red Lining & USA's) - Water 12,000$ GIS - Phase II (Asbuilt Lining, Red Lining & USA's) - Sewer 8,000$ Information Systems Switch & Network Improvements & Replacements 22,000$ Archiving Hardware Solution 19,000$ Replacement DC Server 6,500$ SCADA Ford F250 with Service Body Truck Replacement 39,000$ Ford Explorer Replacement 29,000$ Timber Ridge PLC (Control System) Upgrade 16,000$ Paso Fino PLC (Control System) Upgrade 12,000$ Well-5 PLC (Control System) Upgrade 10,000$ SCADA Server Historian for Remote Data Access 13,500$ Total Vehicle Equipment & Capital Outlay- IT 187,000$ Yorba Linda Water District FY 2013/14 Budget Page 86 Vehicle Equipment and Capital Outlay (FY 2013/14), Continued Department / Item Amount Operations Water Operations & Maint. F450 Utility Truck 76,000$ Sewer Operations & Maint. Slip Lines for Sewer Pipe Repair 60,000$ Green Crest Lift Station Motor Replacement 10,000$ Sewer Camera Cable 8,000$ Facilities Maintenance Admin Building Electrical Plug 12,000$ Total Vehicle Equipment & Capital Outlay- Operations 166,000$ TOTAL VEHICLE EQUIPMENT & CAPITAL OUTLAY 444,000$ Reconciliation by Fund Water Fund 366,000$ Sewer Fund 78,000$ TOTAL 444,000$ Yorba Linda Water District FY 2013/14 Budget Page 87 Department Summaries Yorba Linda Water District FY 2013/14 Budget Page 88 (Maintenance Operator Inspecting Tools at a Worksite) Yorba Linda Water District FY 2013/14 Budget Page 89 Board of Directors Yorba Linda Water District FY 2013/14 Budget Page 90 Board of Directors Program & Responsibilities This Department accounts for the Board of Director’s activities related to governing the District, establishing policy through approval of the Budget, Five Year Plan, Resolutions and Ordinances, and participating in community affairs, intergover nmental relations and participation at selected water and wastewater activities. In addition, activities related to Board direction to legal counsel and legislative advocates is provided in this program. Strategic Plan Objectives/Goals Objectives derived from the Strategic Plan (pg. 19-29) and specific to the Board of Directors are detailed in the following chart. Objective SP Goal Attend more local and regional events and intergovernmental meetings CP 1-C Provide financial incentives and rebates for water-use efficiency CP 2-A Enhance the District’s regional water and wastewater industry participation CP 2-D Maintain commitment to strong debt services ratio FR 1-E Implement an approach to ensure reserves are responsibly funded FR 2-C Evaluate equitable rate structures that promote conservation and efficiency FR 4-B Performance Measures The District will track the success in fulfilling some of its performance measures through the following benchmark:  Attending More Events- Tracking how many events were attended for FY 11/12, as compared to previous years. Yorba Linda Water District FY 2013/14 Budget Page 91 Board of Directors Program & Responsibilities, Continued Accomplishments FY 2012/13  Emphasized the importance of agency efficiency through the funding of an Organizational and Efficiency Study.  Emphasized the importance of Fiscal Responsibility through the approval of a $7 million Line of Credit, which increased the District’s debt service ratio and potential Cash-on-Hand. Yorba Linda Water District FY 2013/14 Budget Page 92 Board of Directors Budget FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries - Directors 90,000$ 90,000$ Fringe Benefits 47,835$ 50,877$ Mandatory Benefits - Directors 8,559$ 8,400$ Total Salary Related Expenses 146,394$ 149,277$ Supplies & Services Communications -$ -$ Contractual Services 1,500$ 1,500$ Dues & Memberships 5,000$ 5,400$ Board Election Expenses 63,500$ -$ Professional Services 102,000$ 102,000$ Professional Development 4,100$ 4,100$ Travel & Conferences 10,200$ 11,400$ Supplies & Services Sub-Total 186,300$ 124,400$ Yorba Linda Water District FY 2013/14 Budget Page 93 Board of Directors Supplies & Services Budget (FY 2012/13) Category Total Sub Acct Total Detail Amt $1,500 1,500 1,500 100 200 5,000 100 42,000 60,000 $4,100 4,100 4,100 4,000 3,000 200 3,000 1,200 $124,400 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-1010-0600-00 Contractual Services 1-1010-0600-00 Contractual Services Tablet PC Data Service ($25 x 5) 1-1010-0640-00 Dues, Memberships, Subscriptions $5,400 1-1010-0640-00 Dues, Memberships & Subscriptions 5,400 ISDOC WACO CSDA 1-1010-0780-00 Professional Services $102,000 1-1010-0780-00 Professional Services 102,000 Legal Services - Retainer Legislative Consultants 1-1010-0830-00 Travel & Conferences 11,400 CRWUA (4 attendees at $1,000 each) ACWA (Spring- 2 @ $1,000, Fall- 2 @ $500) ISDOC Quarterly Colorado River Water Users Assoc CSDA (2 attendees at $1,500 each) Other Conferences Section Total 1-1010-0810-00 Training 1-1010-0810-00 Training CSDA Special District Leadership Academy Training 1-1010-0830-00 Travel & Conferences $11,400 Yorba Linda Water District FY 2013/14 Budget Page 94 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 95 Administration Yorba Linda Water District FY 2013/14 Budget Page 96 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 97 Administration Sections & Responsibilities The Administration Department is responsible for the overall day-to-day management of the District. This involves the continual planning, c ontrol, direction and evaluation of the District's programs and resources. The Department researches and prepares recommendations for consideration by the Board of Directors on issues facing the District. Vested in this Department is the primary responsibility for assuring that Board policies, resolutions and ordinances are properly administered. Section Responsibilities ADMINISTRATION The Department provides administrative services support to each of the departments. Other department activities include interagency coordination and consultation with department managers regarding various operational and planning issues. Additionally, the department is responsible for facilitating the work of the District's General Counsel. PUBLIC AFFAIRS This section of the Administration department is responsible for the organization and implementation of external and internal communications activities. This includes maintaining relations with the public and news media, coordinating community activities, preparing and disseminating District publications, coordinating water conservation activities, and organizing and conducting tours of District facilities for students, youth groups, and the general public. Strategic Plan Objectives/Goals Objectives derived from the Strategic Plan (pg. 19-29) and specific to the Board of Directors are detailed in the following chart. Objective SP Goal Support Regional Training and Multi-Agency Workgroups through the joint use of the Administration Building CP-1 Consider participation in the California Urban Water Conservation Council’s Best Management Practices CP-2 Research and obtain grant funding whenever feasible CP-2 Continue with efforts to annex district service area to Orange County Water District CP-2 Engage with regional agencies on water supply issues CP-1 Evaluate the feasibility of providing additional water services within the region SR-2 Evaluate the feasibility of providing additional wastewater services within the region SR-2 Evaluate the feasibility of providing other professional services within the region SR-2 Yorba Linda Water District FY 2013/14 Budget Page 98 Administration Sections & Responsibilities, Continued Performance Measures The District will track the success in fulfilling some of its performance measurements through the following benchmarks:  Effective Use of Communication Opportunities- Tracking number of media inquiries, requests for materials, request for presentations, etc. 0 10 20 30 40 50 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 27 25 47 48 Public Outreach Events Objective Continued SP Goal Continue to support additional training for staff WE-1 Encourage staff participation in professional organizations and local civic groups WE-1 Implement a program to recognize employees for excellence WE-3 Conduct quarterly All-Hands meetings WE-3 Continue to encourage employee training in Leadership and Technology WE-1 Develop a Public & Governmental Affairs Division CP-1 Develop a Public Relations Master Plan CP-2 Effectively Use Broad-Spectrum Communication Opportunities OE-1 Develop and Expand a Youth-Education Program CP-2 Update the District’s Website CP-2 Yorba Linda Water District FY 2013/14 Budget Page 99 Administration Sections & Responsibilities, Continued  Bi-Annual All-Hands Meetings Held- Tracking if an All-Hands meeting was held and on what schedule, as compared to a goal of two per year. Accomplishments Fiscal Year 2012/13  Produced four quarterly customer newsletters- Waterlines.  Updated the District’s website to promote additional public information and transparency.  Distributed almost 45,000 individual water bottles as community outreach and education tool, through the District’s Bottled Water Progr am- which is more than twice what was distributed last year.  Managed the District’s water waste reporting program, resulting in an overall conservation level of 9%, from the calendar year 2004-2006 baseline. 1 2 2 1 0 1 2 3 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 All-Hands Meetings Held Goal Actual Yorba Linda Water District FY 2013/14 Budget Page 100 Administration Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration General Manager 1.0 1.0 1.0 1.0 1.0 Asst. General Manager 0.5 0.5 --- Executive Secretary 1.0 1.0 1.0 1.0 1.0 Management Analyst 1.0 1.0 --1.0 Records Management Clerk #----0.5 3.5 3.5 2.0 2.0 3.5 Public Affairs Legislative Affairs Intern *-0.5 0.5 0.5 0.5 Public Affairs Intern *-0.5 0.5 0.5 - Management Analyst --1.0 1.0 - Public Information Specialist 1.0 ---- Public Information Officer -1.0 1.0 1.0 1.0 1.0 2.0 3.0 3.0 1.5 Department Totals 4.5 5.5 5.0 5.0 5.0 *Positions added during Fiscal Year 2010/11 mid-year budget adjustment # Legislative Affairs Intern replaced with Records Management Clerk position Yorba Linda Water District FY 2013/14 Budget Page 101 Administration Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 435,947$ 459,123$ Fringe Benefits 87,482$ 94,253$ Mandatory Benefits 59,511$ 51,883$ Total Salary Related Expenses 617,127$ 639,445$ Supplies & Services Communications 207,250$ 192,500$ Contractual Services 19,030$ 7,400$ Dues & Memberships 44,210$ 55,560$ Fees & Permits 225$ 225$ Insurance 1,200$ 1,240$ District Activities & Events 10,600$ 4,650$ Materials -$ -$ Non-Capital Equipment -$ 3,400$ Office Expense 1,600$ 250$ Professional Services 472,300$ 505,350$ Professional Development 6,250$ 8,350$ Travel & Conferences 15,000$ 12,000$ Supplies & Services Sub-Total 777,665$ 790,925$ Yorba Linda Water District FY 2013/14 Budget Page 102 Administration Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $250 250 250 $500 500 500 60 1,000 19,000 30,000 40 1,200 350 2,500 1,200 $3,400 3,400 3,400 $250 250 250 45,000 45,000 125,000 125,000 2,500 1,100 250 500 2,500 9,500 12,000 250,000 47,000 10,000 850 1,000 1,500 1,000 1,000 $570,450 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-2010-0580-00 Communications 1-2010-0580-10 Postage Postage 1-2010-0600-00 Contractual Services 1-2010-0600-00 Contractual Services Temp help 1-2010-0640-00 Dues, Memberships, & Subscriptions $50,060 1-2010-0640-00 Dues, Memberships & Subscriptions 50,060 Notary Assoc Membership Misc. ACWA LAFCO 1-2010-0690-00 Insurance $1,240 1-2010-0690-00 Insurance 1,240 Notary Insurance (AA) Honesty Bond (SC & AA) 1-2010-0715-00 District Activities and Events $4,050 1-2010-0715-50 Meeting Supplies 4,050 Interagency Meetings All Hands Meetings Meeting Supplies 1-2010-0750-00 Non-Capital Equipment 1-2010-0750-00 Non-Capital Equipment Employee Events- Tables, Chairs, etc. 1-2010-0760-00 Office Expense 1-2010-0760-00 Office Expense Office Supplies 1-2010-0780-00 Professional Services $505,350 1-2010-0780-00 Professional Services Organizational Efficiency Study 1-2010-0780-05 Legal Services Routine Legal 1-2010-0780-15 Records Management 28,350 Facilitation of Electronic File Clean Up Offsite Storage Records Retention Schedule Update Records Destruction Laserfiche (ECM) Policy & Procedures Manual Records Mgmt Program Policy Manual Vault Shelving 1-2010-0780-36 Water Only Related Expenses 307,000 Freeway Complex Fire Legal Services OCWD Annexation Legal Services CEQA for Annexation 1-2010-0810-00 Training $3,350 1-2010-0810-00 Training 3,350 CSDA District of Distinction GM Training Laserfiche Conference ARMA- RIM Certification Section Total 1-2010-0830-00 Travel & Conferences $2,000 1-2010-0830-00 Travel & Conferences 2,000 CUEMF (1 attendee) ACWA (1 attendees) Yorba Linda Water District FY 2013/14 Budget Page 103 Administration Budget Section Detail (FY 2013/14) Public Affairs Section Category Total Sub Acct Total Detail Amt 6,000 6,000 17,000 17,000 20,000 20,000 45,000 20,000 3,000 3,000 17,400 25,000 5,400 5,400 5,400 5,400 17,250 17,250 1,120 780 5,000 $225 225 225 500 1,000 600 800 2,600 350 250 $5,000 5,000 5,000 2,500 1,400 2,600 1,000 2,500 $220,475Section Total 1-2020-0810-00 Training 1-2020-0810-00 Training Training 1-2020-0830-00 Travel & Conferences $10,000 1-2020-0830-00 Travel & Conferences 10,000 CAC Field Trips CAPIO Annual Conference (1 employee) PRSA Annual Best Practices Summit (1 employee) PRSA Membership Shutterstock Annual Renewal Fee CRWUA (1 employee) Mileage 1-2020-0715-00 District Activities & Events $600 1-2020-0715-50 Meeting Supplies 600 Intergovernmental Meetings Division Meetings 1-2020-0645-00 Fees & Permits 1-2020-0645-00 Fees & Permits GFOA PAFR Reviewer Fee 1-2020-0640-00 Dues, Memberships, & Subscriptions $5,500 1-2020-0640-00 Dues, Memberships & Subscriptions 5,500 OC Register/LA Times Chamber Memberships (YL, PL) CAPIO Membership 1-2020-0580-55 Water Conservation Programs MWDOC Choice Water Use Efficiency 1-2020-0600-00 Contractual Services $6,900 1-2020-0600-00 Contractual Services 6,900 Doxo Muzak Contract Conservation Rebate Prog. (Turf, Sprinklers, Appli 1-2020-0580-00 Communications 1-2020-0580-50 Water Conservation Materials 21,600 Summer Newsletter Fall Newsletter Winter Newsletter Spring Newsletter Promotional Items 1-2020-0580-40 Sponsorships Sponsorship- OC Water Summit x 2 1-2020-0580-45 Video Productions 42,400 PSA/Video Production Lobby Kiosk $192,250 1-2020-0580-05 Advertising General 1-2020-0580-10 Postage Postage 1-2020-0580-15 District Special Events Community Events (Open House, Facility Tours, etc. 1-2020-0580-35 Promotional Items 65,000 YLWD Bottled Water Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 104 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 105 Engineering Yorba Linda Water District FY 2013/14 Budget Page 106 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 107 Engineering Sections & Responsibilities The Engineering Department is responsible for preparing and maintaining engineering records, administering the planning and design of capital projects, planning for and managing construction-related work for capital improvements and replacement projects, inspecting system improvements, and managing the water quality testing program. Section Responsibilities ENGINEERING ADMINISTRATION This Section provides overall departmental administration and planning for capital projects, section work and water quality testing. Also included is records management to maintain files on facilities and new water and sewer construction projects, accomplish as-built documentation, and respond to underground service alert requests. PLANNING AND DESIGN This Section is responsible for planning and oversight of water and sewer facilities proposed by developers to assure that they are planned and designed to District standards, and sized to meet the long-range plans of the District. The Section has similar responsibilities for District planned and funded facilities , including confirmation that environmental documentation and requirements are met. The Section provides management and review of the design of District facilities, with the design performed internally or by outside engineering consultants retained by the District. CONSTRUCTION MANAGEMENT This Section is responsible for construction management of all District capital projects and developer-related construction projects. The Section has inspection staff or retains outside inspection staff as required to oversee construction of water and sewer facilities to assure they are meeting design intent and the standards of the District . WATER QUALITY This Section is responsible to implement, maintain, and comply with all water quality regulations and programs which include monitoring, analysis, and documentation of all water quality compliance sampling and testing required by local, state, and federal regulations. In addition, the Section monitors all backflow devices and fire detector check assemblies in the District as required by California law to ensure that they are designed and functioning properly. Strategic Plan Objectives/Goals Objectives derived from the Strategic Plan (pg. 19-29) and specific to the Board of Directors are detailed in the following chart. Yorba Linda Water District FY 2013/14 Budget Page 108 Engineering Sections & Responsibilities, Continued Objective SP Goal Analyze the Asset Management Plan to Determine Future Needs SR-1 Develop Additional Well Sites SR-1 Continue Implementation of Three-Year Capital Improvement Plan SR-3 Continue Planning for Long-Term Capital Improvements and Replacements SR-1 Performance Measures  In conformance with the requirements of the State Department of Public Health, District staff collects water samples throughout the service area on a weekly basis for water quality testing. Based on the size of the District and the number of customers, the District is required to collect 1,404 samples. The District routinely collects nearly three times as many samples on an annual basis to assure that the water delivered is safe, pure and meeting all the standards of the Department of Public Health. In the last three years, District staff collected 4,005, 3,980 and 3,980 samples, respectively, for testing.  District Engineering staff manage multiple water and sewer projects each year, some of which may be short term, such as new fire hydrants for new or improved developments, or long term, such as water and sewer facilities for new housing developments, or new capital facilities to improve water or sewer service. Each project is set up, files established, monitored and tracked throughout its planning, construction and startup. When complete, all documentation is compiled and the files are closed. In the last three years, District staff completed and closed 55, 26 and 15 jobs, respectively. The decline in job closings is a reflection of the downturn in the economy in this time period.  As part of the District’s responsibility to monitor all water system backflow protection devices, Engineering staff provide oversight f or the testing of the devices. As necessary, District staff send notices to property owners (businesses and residential) of the need for the annual test as required by the State. Depending on the response of the property own ers, staff will send out First and Second Notices of testing required to assure compliance. In 2009, 2010 and 2011, District staff provided oversight for the testing of 1 ,312; 2,957 and 2,948 backflow devices, respectively. Oversight included monitoring for devices that did not comply with test requirements and required repair or replacement, totaling 84, 184 and 161 devices over the last three years. Yorba Linda Water District FY 2013/14 Budget Page 109 Engineering Sections & Responsibilities, Continued Accomplishments Fiscal Year 2012/13  Construction of Highland Booster Pump Station Project  Construction of Yorba Linda Blvd Pipeline Project  Construction of Green Crest Sewer Lift Station Upgrade  Construction of Well No. 20 Equipping Project  Construction of Pressure Regulating Station Upgrade Project, Phase 1  Initiated Construction of Yorba Linda Blvd Booster Station  Initiated Construction of 2012 Pipeline Replacement Project, Phase 2  Completed Northeast Area Planning Study  Completed design of Y. L. High School Park Pipeline Relocation Project  Completed negotiations with OCWD for site of Well 21  Completed negotiations with OCTA for relocation of Lakeview Ave Pipelines Yorba Linda Water District FY 2013/14 Budget Page 110 Engineering Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Engineering Manager 1.0 1.0 1.0 1.0 1.0 Engineering Secretary 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Planning & Design Engineering Technician II 3.0 3.0 2.0 2.0 2.0 Project Engineer 1.0 1.0 1.0 1.0 1.0 Sr. Project Manager 1.0 1.0 1.0 1.0 1.0 5.0 5.0 4.0 4.0 4.0 Construction Construction Inspector 1.0 1.0 1.0 1.0 1.0 Project Engineer 1.0 1.0 1.0 1.0 1.0 Sr. Construction Inspector 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Water Quality Water Quality Engineer 1.0 1.0 1.0 1.0 1.0 Water Quality Technician I ----- Water Quality Technician II*1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Department Totals 12.0 12.0 11.0 11.0 11.0 * under filled with Water Quality Technician I prior to FY 2013/14 Yorba Linda Water District FY 2013/14 Budget Page 111 Engineering Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 899,451$ 921,877$ Fringe Benefits 161,654$ 146,044$ Mandatory Benefits 125,308$ 120,547$ Total Salary Related Expenses 1,189,413$ 1,188,468$ Supplies & Services Communications -$ -$ Contractual Services 61,040$ 111,380$ Data Processing -$ -$ Dues & Memberships 2,600$ 3,063$ Fees & Permits 24,000$ 27,875$ Materials 2,000$ 2,000$ Non-Capital Equipment -$ 1,400$ Office Expense 2,150$ 2,450$ Professional Services 15,000$ 20,000$ Professional Development 4,000$ 2,950$ Travel & Conferences 3,650$ 3,300$ Supplies & Services Sub-Total 114,440$ 174,418$ Yorba Linda Water District FY 2013/14 Budget Page 112 Engineering Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $300 300 300 $200 200 200 $800 800 800 $1,300 1-4010-0830-00 Travel & Conferences 1-4010-0830-00 Travel & Conferences Travel & Conferences Section Total 1-4010-0640-00 Dues, Memberships, & Subscriptions 1-4010-0640-00 Dues, Memberships & Subscriptions Dues, Memberships & Subscriptions 1-4010-0810-00 Training 1-4010-0810-00 Training Training Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 113 Engineering Budget Section Detail (FY2013/14) Planning & Design Section Category Total Sub Acct Total Detail Amt $50,000 50,000 50,000 3,875 3,875 2,000 2,000 500 250 1,000 1,000 300 300 5,000 5,000 10,000 10,000 5,000 5,000 400 300 $500 500 500 $79,125 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-4020-0600-00 Contractual Services 1-4020-0600-00 Contractual Services The Chambers Group (Hidden Hills) 1-4020-0645-00 Fees & Permits $5,875 1-4020-0645-00 Fees & Permits OCWD/ Well 21 Lease Agreement Fee 1-4020-0645-20 USA Underground Service Alerts USA Underground Service Alerts 1-4020-0640-00 Dues, Memberships & Subscriptions $750 1-4020-0640-00 Dues, Memberships & Subscriptions 750 AWWA ACEE 1-4020-0760-00 Office Expense $1,300 1-4020-0760-00 Office Expense Office Expense 1-4020-0760-30 Books & Publications Library Reference Books 1-4020-0780-00 Professional Services $20,000 1-4020-0780-00 Professional Services Cathodic Protection Consulting Services 1-4020-0780-36 Professional Serviices - Water Related Water Consulting Services 1-4020-0780-39 Professional Services - Sewer Related Sewer Consulting Services 1-4020-0810-00 Training $700 1-4020-0810-00 Training 700 Certification Courses AWWA 1-4020-0830-00 Travel & Conferences 1-4020-0830-00 Travel & Conferences Cathodic Protection Section Total Yorba Linda Water District FY 2013/14 Budget Page 114 Engineering Budget Section Detail (FY 2013/14) Construction Section Category Total Sub Acct Total Detail Amt $220 220 220 $350 350 350 $1,400 1,400 1,400 350 350 500 500 400 800 $4,020Section Total 1-4030-0810-00 Training $1,200 1-4030-0810-00 Training 1,200 Training Inspector Certification 1-4030-0750-00 Non-Capital Equipment 1-4030-0750-00 Non-Capital Equipment Inspection Related Tools & Equipment 1-4030-0760-00 Office Expense $850 1-4030-0760-00 Office Expense Office Supplies 1-4030-0760-30 Books & Publications Code Books 1-4030-0600-00 Contractual Services 1-4030-0600-50 Uniforms Uniforms 1-4030-0640-00 Dues, Memberships, & Subscriptions 1-4030-0640-00 Dues, Memberships & Subscriptions Construction Management Association of America Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 115 Engineering Budget Section Detail (FY 2013/14) Water Quality Section Category Total Sub Acct Total Detail Amt 3,000 3,000 350 350 5,590 5,590 220 220 52,000 52,000 100 100 1,000 225 238 $22,000 22,000 22,000 $2,000 2,000 2,000 $300 300 300 $850 850 850 $2,000 2,000 2,000 $89,973 1-4040-0830-00 Travel & Conferences 1-4040-0830-00 Travel & Conferences Travel and Conferences Section Total 1-4040-0760-00 Office Expense 1-4040-0760-30 Books & Publications AWWA Books 1-4040-0810-00 Training 1-4040-0810-00 Training Training AWWA (Nguyen) 1-4040-0645-00 Fees & Permits 1-4040-0645-10 Dept of Health Services Dept. of Health Services 1-4040-0710-00 Materials 1-4040-0710-20 Wtr Quality Test Kit Reagents Wtr Quality Test Reagents 1-4040-0600-60 Microbiological Examination Microbiological Examination 1-4040-0640-00 Dues, Memberships, & Subscriptions $1,663 1-4040-0640-00 Dues, Memberships, & Subscriptions 1,663 American Academy of Environmental Engineers (NguyeABPA (Maldonado) Water Purveyor Membership American Society of Civil Engineers (Nguyen) 1-4040-0600-00 Contractual Services $61,160 1-4040-0600-00 Contractual Services System Disinfection/Blending 1-4040-0600-12 Backflow Device Rep Backflow Device Repair 1-4040-0600-25 Distrubution System Disinfection Distribution System Disinfection 1-4040-0600-50 Uniforms Uniforms Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 116 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 117 Finance Yorba Linda Water District FY 2013/14 Budget Page 118 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 119 Finance Sections and Responsibilities The Finance Department maintains the financial oversight of all District funds by ensuring conformance with modern finance and accounting theory, practices and compliance with applicable state and federal laws. Finance provides external and internal services throughout the District and its service area. Because of our dedication to provide the highest level of service possible, we continually seek to implement solutions that utilize the most current technology and tools available. The department provides a wide level of service in the following areas: Accounting, Customer Service, and Meter Reading divisions. Section Responsibilities ADMINISTRATION This Section of the Department is responsible for the establishment and maintenance of an effective financial accounting and utility billing sys tem, which accurately accounts for the operations of the District and offers a framework for planning and analysis. ACCOUNTING The Accounting Section is responsible for all financial related services for the District, which include general ledger accounting, audit, the processing of accounts payable and payroll, banking and cash management, investment functions, job costing, cost accounting, fixed assets, monthly, quarterly and annual budget preparation, and Capital Improvement Program reporting. This section is also responsible for completing the District’s annual financial audit and publishing the Comprehensive A nnual Financial Report (CAFR). Accounting annually reviews the District’s Investment Policy and assists in the preparation of the District’s annual operating and capital budgets. All duties are performed according to generally accepted accounting practices and procedures. CUSTOMER SERVICE/BILLLING The Customer Service Section is the first point of contact for our customers, especially for the investigation of and resolving customer questions and concerns on a wide variety of service related issues. This section provides reception services, call center activity, walk-up counter payment service, internet payment service, ACH and credit card payment processing, customer billing, new account processing, work order generation, and delinquent account processing, including collection processing and referrals. This section is also responsible for all accounts receivable activities, which includes the generation of invoices and the posting of payments. Yorba Linda Water District FY 2013/14 Budget Page 120 Finance Sections and Responsibilities, Continued METER READING The Meter Reading Section reads approximately 24,000 meters a month using manual and automatic meter reading technology. This section also handles all field service requests that include turning on/off accounts, meter repairs, water consumption investigations and consultations, and meter calibrations. Strategic Plan Objectives/Goals Objective SP Goal Review current Comprehensive Multi-Year Financial Plan and modify as needed. FR-1 Prepare a high-level annual Budget Document and Annual Financial Report and compete for recognition by the Government Finance Officers Association and by the California Society of Municipal Finance Officers. FR-1 Adhere to the current Water Rules and Regulations and Service/Developer Fees approved March 2012. Revise the Sewer Rules and Regulations Fees. Evaluate fees regularly for proper cost of service coverage. FR-4 Research alternative investment methods to achieve the highest rate of return while balancing the tolerable risk of investments. FR-3 Review current workflow processes and practices in an effort to streamline and/or automate to increase efficiencies. OE-1 Continue to record and report the fairly stated financial activities of the District in a timely and transparent manner to the Board and member agencies. FR-1 Continue to improve communications of the District’s financial information to the Board, member agencies, management, and the financia l community. FR-1 Work in coordination with IT to implement a district wide paperless processing system. OE-1 Continue to provide Finance staff with cross-training opportunities. WE-1 Manage District Cash Flow to Maximize Investment Income FR-3 Record and report accurate financial obligations payable from the Districts operating and capital funds/reserves FR-1 Yorba Linda Water District FY 2013/14 Budget Page 121 Finance Sections and Responsibilities, Continued Performance Measures Note: Water Capital Replacement and Sewer Capital Replacement reflect annual contribution amounts, not target balances. Note: FY 08/09, FY 09/10, FY 10/11 are actual. FY 11/12 is projected and FY 12/13 is forecasted. Yorba Linda Water District FY 2013/14 Budget Page 122 Finance Sections and Responsibilities, Continued Accomplishments Fiscal Year 2011/12  Successfully implemented a Soft Credit Check and Customer Deposit process for new incoming water customers to the District  Staff received Microsoft Office and Cogsdale training to enhance workflow efficiencies  Successfully activated 3,250 new customer accounts  Evaluated processes and improved efficiencies within daily tasks, particularly in the areas of credit cards processes, new account setup, and payment entry functions  Successfully modified the billing system and water bill templates to reflect new water and meter rates effective July 1, 2012  Implemented an Online Customer Service Request to encompass Turn-on and Turn- off requests via the YLWD website  Acquired and installed meter test bench Yorba Linda Water District FY 2013/14 Budget Page 123 Finance Sections and Responsibilities, Continued  Converted 2 direct read routes to radio read  Installed Neptune Reading Software/Handheld Device  Successfully read 238,746 meters for water billing purposes  Successfully responded to 1,260 customer service requests for high bills, meter replacements and other services  Submitted and received a Distinguished Budget Presentation Award for FY 2012/13 from the Government Finance Officers Association for a second consecutive year  Successfully implemented a paperless distribution process for biweekly payroll paystubs and annual W -2’s via Doculivery  Completed the District’s FY 2011-12 CAFR, receiving an unqualified opinion and the GFOA award for Excellence in Financial Reporting for the third consecutive year  Reviewed and revised the District’s Investment Policy and submitted it for California Municipal Treasurers Association’s Certification program  Spent $835,943 to pay off the District’s PERS Side -Fund, which decreases the PERS Employer Contribution Rate by 1.43% annually over the next 13 years and will save an estimated $225,000 to $550,000 over that time  Issued $8,330,000 in Refunding Revenue Bonds, Series 2012A, which advance refunded and defeased the $8,965,000 Certificates of Participation, Series 2003 and resulted in a decrease in total debt service payments over the next 21 years by $1.72 million, and an economic gain of over $1.32 million  Re-affirmed a Water Revenue Bond Rating of AA+ with S&P and AA rating f rom Fitch with a stable outlook  Established a $7,000,000 Line of Credit with Wells Fargo Bank that is payable in three years at an interest rate equal to One-Month LIBOR + 0.90%, and an annual unused commitment fee of 0.35% Yorba Linda Water District FY 2013/14 Budget Page 124 Finance Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Finance Director 1.0 1.0 --- Finance Manager --1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Accounting Accounting Assistant I 1.0 1.0 1.0 1.0 1.0 Accounting Assistant II 1.0 1.0 1.0 1.0 1.0 Financial Analyst ----- Senior Accountant 1.0 1.0 1.0 1.0 1.0 Storekeeper 1.0 1.0 --- 4.0 4.0 3.0 3.0 3.0 Customer Service/Billing Customer Service Rep I 1.0 1.0 1.0 1.0 1.0 Customer Service Rep II 1.0 1.0 1.0 1.0 1.0 Customer Service Rep III 2.0 2.0 2.0 2.0 2.0 Customer Service Supervisor 1.0 1.0 1.0 1.0 1.0 5.0 5.0 5.0 5.0 5.0 Meter Reading Meter Reader I 2.0 2.0 2.0 2.0 2.0 Meter Reader II 2.0 2.0 2.0 2.0 2.0 Meter Services Lead -1.0 1.0 1.0 1.0 Meter Services Rep.1.0 ---- 5.0 5.0 5.0 5.0 5.0 Department Totals 15.0 15.0 14.0 14.0 14.0 Yorba Linda Water District FY 2013/14 Budget Page 125 Finance Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 850,552$ 900,171$ Fringe Benefits 202,789$ 187,123$ Mandatory Benefits 117,166$ 110,671$ Total Salary Related Expenses 1,173,508$ 1,200,965$ Supplies & Services Communications 88,000$ 98,200$ Contractual Services 88,161$ 92,640$ Dues & Memberships 1,405$ 785$ Fees & Permits 95,995$ 101,365$ Insurance -$ -$ Materials 12,000$ 25,000$ District Activities & Events 700$ 1,050$ Maintenance 200$ 300$ Non-Capital Equipment 3,950$ 950$ Office Expense 16,600$ 14,050$ Professional Services 31,160$ 33,360$ Professional Development 4,250$ 3,160$ Travel & Conferences 4,150$ 5,300$ Uncollectible Accounts 39,000$ 25,000$ Supplies & Services Sub-Total 385,571$ 401,160$ Yorba Linda Water District FY 2013/14 Budget Page 126 Finance Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $400 400 400 110 155 160 $400 400 400 1,200 18,960 4,000 4,000 2,700 2,000 600 300 1,500 700 500 $37,685Section Total 1-3010-0830-00 Travel & Conferences $2,700 1-3010-0830-00 Travel & Conferences 2,700 GFOA Conference CSMFO Conference CSMFO Oct Board Meeting Actuarial Valuation (OPEB) Arbitrage Consulting (2003 COP) CAFR Online 1-3010-0810-00 Training $900 1-3010-0810-00 Training 900 Continual Professional Education CDIAC Training 1-3010-0715-00 District Activities & Events 1-3010-0715-50 Meeting Supplies Meeting Supplies 1-3010-0780-00 Professional Services $32,860 1-3010-0780-00 Professional Services 32,860 CDAR Preparation Auditors Financial Plan Model Consulting 1-3010-0600-00 Contractual Services 1-3010-0600-00 Contractual Services Check signature plate 1-3010-0640-00 Dues, Memberships & Subscriptions $425 1-3010-0640-00 Dues, Memberships & Subscriptions 425 CSMFO CMTA GFOA Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 127 Finance Budget Section Detail (FY 2013/14) Accounting Section Category Total Sub Acct Total Detail Amt $400 400 400 500 360 $110 110 110 150 435 330 275 30,000 150 25 $400 400 400 $300 300 300 9,000 9,000 3,500 3,500 $1,000 1,000 1,000 1,000 700 $48,635 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-3020-0580-00 Communications 1-3020-0580-00 Communications Publish Unclaimed List 1-3020-0600-00 Contractual Services $860 1-3020-0600-00 Contractual Services 860 Green Shades Doculivery 1-3020-0640-00 Dues, Memberships & Subscriptions 1-3020-0640-00 Dues, Memberships & Subscriptions Delia Lugo - CSMFO 1-3020-0645-00 Fees & Permits $31,365 1-3020-0645-00 Fees & Permits 1,190 CSMFO Budget Reviewer Fee GFOA CAFR Reviewer Fee GFOA Budget Award Reviewer Fee CMTA - Investment Policy Award 1-3020-0645-50 Bank Service/Fees 30,175 Analysis Fees (Avg $2550/mo) Safe Deposit Box Fee Annual Bankcard Fee 1-3020-0715-00 District Activities and Events 1-3020-0715-50 Meeting Supplies Meeting Supplies 1-3020-0730-00 Maintenance 1-3020-0730-00 Maintenance Small Office Equipment Maintenance PERS Conference CSMFO Conference 1-3020-0760-00 Office Expense $12,500 1-3020-0760-00 Office Expense Office supplies 1-3020-0760-10 Paper Paper Section Total 1-3020-0810-00 Training 1-3020-0810-00 Training Staff Training 1-3020-0830-00 Travel & Conferences $1,700 1-3020-0830-00 Travel & Conferences 1,700 Yorba Linda Water District FY 2013/14 Budget Page 128 Finance Budget Section Detail (FY 2013/14) Customer Service/Billing Section Category Total Sub Acct Total Detail Amt 800 800 2,000 2,000 95,000 95,000 200 1,400 6,000 300 50,000 17,300 1,120 1,900 1,900 10,000 10,000 27,000 43,000 $250 250 250 1,300 250 $500 500 500 $600 600 600 $200 200 200 $25,000 25,000 25,000 $284,120 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-3030-0580-00 Communications $97,800 1-3030-0580-00 Communications UPS / Fed Ex / Other 1-3030-0580-10 Postage Postage Metered 1-3030-0580-22 Postage - Infosend Postage - Infosend 1-3030-0600-00 Contractual Services 1,600 Post Office Box Post Master - Lockbox 1-3030-0600-21 Customer Credit Check 6,300 Online - Credit Checks Online - Utility Exchange 1-3030-0600-22 Printing of Bills - Infosend 68,420 Mailing Service Info Send E-Bill Fees DOXO 1-3030-0600-30 Warranties & Service Contracts Meter & Scale Lease Agreement 1-3030-0600-55 Answering Service Phone Answering Service 1-3030-0645-00 Fees & Permits $70,000 1-3030-0645-50 Bank Services/Fees 70,000 Lock Box Services Credit Card & Auto Dr Processing 1-3030-0600-00 Contractual Services $88,220 1-3030-0715-00 District Activities and Events 1-3030-0715-50 Meeting Supplies Meeting Supplies 1-3030-0760-00 Office Expense $1,550 1-3030-0760-00 Office Expense 1,550 Forms/Pads/Tags/Deposit Slips Postage Machine Supplies 1-3030-0780-00 Professional Services 1-3030-0780-09 Collection Services Collection Agency Fee 1-3030-0810-00 Training 1-3030-0810-00 Training Customer Service Training Section Total 1-3030-0830-00 Travel & Conferences 1-3030-0830-00 Travel & Conferences Mileage 1-3030-0850-00 Uncollectible Accounts 1-3030-0850-00 Uncollectible Accounts Uncollectible Accounts Yorba Linda Water District FY 2013/14 Budget Page 129 Finance Budget Section Detail (FY 2013/14) Meter Reading Section Category Total Sub Acct Total Detail Amt 2,410 2,410 750 750 $250 250 250 $25,000 25,000 25,000 500 200 250 250 500 500 160 160 $700 700 700 $30,720 1-3040-0830-00 Travel & Conferences 1-3040-0830-00 Travel & Conferences AWWA Conference Section Total 1-3040-0810-00 Training $660 1-3040-0810-00 Training Training classes 1-3040-0810-40 Certificate Reimbursement Certificate Reimbursement 1-3040-0750-00 Non-Capital Equipment $950 1-3040-0750-00 Non-Capital Equiptment 700 Meter Shop Equipment Construction Meter Locks 1-3040-0750-10 Hand and Power Tools Hand Tools/Meter Lid Bars/Lifters 1-3040-0640-00 Dues, Memberships, & Subscriptions 1-3040-0640-00 Dues, Memberships & Subscriptions AWWA 1-3040-0710-00 Materials 1-3040-0710-58 Registers Registers 1-3040-0600-00 Contractual Services $3,160 1-3040-0600-00 Contractual Services Neptune Maintenance Agreement 1-3040-0600-50 Uniform Uniforms Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 130 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 131 Human Resources Yorba Linda Water District FY 2013/14 Budget Page 132 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 133 Human Resources Sections and Responsibilities The Human Resources Department is responsible for the administration and coordination of the District’s personnel system, risk management and safety programs. Section Responsibilities: HUMAN RESOURCES ADMINISTRATION This Section supports operating departments by providing a wide range of personnel services such as benefits administration (health, dental, optical, life insurance and an employee assistance program), coordinating recruitment and selection, classification and compensation programs, as well as the administration of the District’s personnel rules, policies and procedures. Other functions include the maintenance of employee personnel files, training records, medical files and employee p erformance evaluation reports. The Administration Section provides employer/employee relation’s administration services and contract negotiations. This includes employee and supervisory counseling on personnel policies, procedures and practices, providing assistance in the handling of employee grievances and dis ciplinary actions as well as implementation of new labor contract provisions. RISK MANAGEMENT This Section administers the District’s self -insured liability, worker’s compensation and loss prevention programs. The District’s liability, property and workers compensation insurance is provided by the Association of California Water Agencies Joint Powers Insurance Authority (ACWA-JPIA). The Risk Management Section strives to protect the personnel and physical assets of the District from injury and financial co nsequences of accidental losses through a program of prevention, avoidance and insurance procurement. The Section is responsible for cost-effective management of tort liability claims filed against the District. It strives to process and bring closure as expeditiously as possible to all claims and engages the input of other District departments during the investigation and resolution process. SAFETY The Safety Section actively looks to reduce the District’s accidental loss exposure through continuous identification and measurement of existing hazards and through the implementation of policies and procedures to eliminate unsafe working conditions. Other functions include the coordination and implementation of safety and training programs ensuring compliance with federal and state laws regarding occupational health and safety regulations. This Section promotes employee development and the sharpening of employees’ skills and knowledge through training programs as well as providing career development opportunities. Yorba Linda Water District FY 2013/14 Budget Page 134 Human Resources Sections and Responsibilities, Continued Strategic Plan Objectives Objectives derived from the Strategic Plan (pg. 19-29) and specific to the Board of Directors are detailed in the following chart. Objective SP Goal Provide support and encourage employee training WE-1 Maintain competitive compensation via classification and compensation surveys WE-2 Explore alternative benefits WE-3 Establish career development expectations of existing employees WE-1 Develop methodologies to assist employees in attaining career expectations WE-1 Continue to support additional training for staff WE-1 Identify key roles for succession WE-2 Define the competencies and motivational profile required for key roles WE-2 Identify individuals with the potential to perform highly in key roles WE-2 Develop methodologies to assist employees in preparing for advancement WE-1 Performance Measures The District’s Personal Development Program (PDP), offered through the Association of California Water Agencies Joint Powers Authority, is typically a two -year series of classes offered in one of three specialties - Supervisory, Human Resources and Operations. Participation is voluntary, but encouraged. Yorba Linda Water District FY 2013/14 Budget Page 135 Human Resources Sections and Responsibilities, Continued During FY 2010/11, six recruitments were conducted resulting in 618 applications processed, four recruitments resulting in 299 applications were processed in FY 2011/12, and three recruitments were conducted resulting in 727 applications processed in FY 2012/13. Yorba Linda Water District FY 2013/14 Budget Page 136 Human Resources Sections and Responsibilities, Continued During calendar year 2009, the District experienced 3 workplace injuries, which resulted in a total of 91 days away from work and 0 days of job restriction. During calendar year 2010, the District experienced 8 workplace injuries, which resulted in a total of 1 day away from work and 1 day of job restriction. During calendar year 2011, the District experienced 4 workplace injuries, which resulted in a total of 71 days away from work and 2 days of job restriction. During calendar year 2012, the District experienced 5 workplace injuries, which resulted in 0 days away from work and a total of 13 days of job restriction. During calendar years 2009 and 2011, the days away from work are significantly higher because the nature of the incidents required a longer recovery time. Accomplishments Fiscal Year 2012-13  Revised the job descriptions for both the Operations Manager and General Manager.  Revised the Personnel Rules to include the implementation of At-Will status for all Management and Supervisory/Confidential employees hired after January 24, 2013.  Developed a draft Employment Contract for the unfilled General Manager position. Yorba Linda Water District FY 2013/14 Budget Page 137 Human Resources Sections and Responsibilities, Continued  Completed negotiations with the Employee’s Association for a three -year Memorandum of Understanding to run from July 1, 2012 through June 30, 2015.  Revised/developed/implemented Rules, Policies and Procedures: o Education/Certification/License Reimbursement Policy (in process) o Heat Illness Prevention Program o Confined Space Entry Program (in process) o Safety Footwear Allowance Policy  Arranged for District-wide First AID/CPR/AED Training o Refresher Training conducted o Initial Training conducted  Arranged for the Annual Hearing Testing to be conducted on site.  Coordinated with the Engineering Department to arrange to have an Arc Flash Assessment conducted at four District sites.  Conducted/coordinated the following workplace training: o Confined Space Entry o Heat Illness Prevention Program o Arc Flash Training o Verbal Judo o Accident Investigation o GHS preliminary training o GHS mandated training o AB340 Public Employees Pension Reform Act (PEPRA) o Affordable Care Act Business Rules Training Yorba Linda Water District FY 2013/14 Budget Page 138 Human Resources Sections and Responsibilities, Continued  Coordinated attendance at the following LCW workshops: Attendees o Finding the Facts: Disciplinary & Harassment Complaints 1 o Orange County Human Resources Consortium 2 o Public Sector Employment Law Update 2 o Managing the Marginal Employee 24 o Managing Through Performance Evaluation 22 o Performance Management, Evaluation, Documentation And Discipline 1 o Public Sector Employment Law Conference (two days) 3 o Accommodating Bad Behavior 2 o District-wide Harassment, Discrimination, Retaliation Training  Coordinated attendance for ten employees at the ACWA/JPIA Training Conference  Coordinated the annual Employee Recognition dinner.  Arranged for all aspects of the annual Benefits Fair and annual flu shots. Yorba Linda Water District FY 2013/14 Budget Page 139 Human Resources Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Human Resources & Risk Mgr -1.0 1.0 1.0 1.0 Human Resources Manager 1.0 ---- Human Resources Analyst 1.0 1.0 1.0 1.0 1.0 Human Resources Clerk ----0.5 2.0 2.0 2.0 2.0 2.5 Risk Management Personnel Technician 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Safety Safety & Training Officer ----0.5 0.5 Department Totals 3.0 3.0 3.0 3.0 4.0 Yorba Linda Water District FY 2013/14 Budget Page 140 Human Resources Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 279,754$ 334,951$ Fringe Benefits 55,445$ 74,136$ Mandatory Benefits 38,785$ 38,351$ Total Salary Related Expenses 373,985$ 447,438$ Supplies & Services Communications 4,500$ 14,000$ Contractual Services 11,450$ 37,500$ Dues & Memberships 5,475$ 5,500$ Insurance 278,000$ 298,000$ Materials 1,000$ 1,000$ District Activities & Events 6,500$ 17,650$ Office Expense 700$ 725$ Professional Services 114,000$ 98,500$ Professional Development 4,000$ 24,900$ Travel & Conferences 1,500$ 7,000$ Supplies & Services Sub-Total 427,125$ 504,775$ Yorba Linda Water District FY 2013/14 Budget Page 141 Human Resources Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt 2,000 2,000 12,000 12,000 700 500 900 1,500 3,000 10,000 700 700 1,200 1,200 600 1,200 400 200 50 3,200 600 500 500 3,000 2,000 4,000 650 1,000 2,000 2,000 3,000 3,000 1,000 1,000 200 200 100 225 55,000 55,000 12,000 12,000 2,000 4,500 2,000 10,000 600 3,000 1,600 800 $147,925 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-7010-0580-00 Communications $14,000 1-7010-0580-05 Advertising Job Advertising Expenses 1-7010-0580-10 Testing Recruitment Expenses - WRIB/Assessments 1-7010-0600-00 Contractual Services $20,300 1-7010-0600-00 Contractual Services 16,600 EE Relations Flex Advantage COBRA Solutions Shred-it Neo Gov- Online Applications Neo Gov- Performance Evaluations 1-7010-0600-10 DOT Physicals DOT Physicals 1-7010-0600-20 Post-Employment Physicals Post-Employment Physicals 1-7010-0600-30 Health & Welfare 1,800 Hep B Flu Shots 1-7010-0640-00 Dues, Memberships & Subscriptions $4,450 1-7010-0640-00 Dues, Memberships & Subscriptions 4,450 CALPELRA Annual Dues SHRM Membership Jobs Available Subscription LCW Consortium PELRAC 1-7010-0715-00 District Activities & Events $17,150 1-7010-0715-00 District Activities & Events District Activities & Events 1-7010-0715-10 District Events - Employee Picnic 5,000 Employee Recognition Event Employee Picnic 1-7010-0715-20 District Events - Employee Recognition 5,650 Retiree Event (2) Retiree Recognition (2) Service Recognition 1-7010-0715-30 Distirct Events - Benefit Fair Benefit Fair 1-7010-0715-40 District Events - Employee Promotional Items Employee Promotional Items 1-7010-0715-50 Meeting Supplies Meeting/Training Supplies 1-7010-0760-00 Office Expense $525 1-7010-0760-00 Office Expense Office Supplies 1-7010-0760-30 Books & Publications 325 Books & Publications Public Retirement Journal 1-7010-0780-00 Professional Services $67,000 1-7010-0780-05 Legal Services Liebert Cassidy Whitmore Employment Law 1-7010-0780-55 Investigations Normb Traub & Associates- Invest & Background Public Retirement Seminar (4 employees) 1-7010-0810-00 Training $18,500 1-7010-0810-00 Training 18,500 CPS Human Resources Academy Training Verbal Judo Training (District-wide) On-going Job Training Great Plains Training- HR Module Section Total 1-7010-0830-00 Travel & Conferences $6,000 1-7010-0830-00 Travel & Conferences 6,000 PELRAC (3 employees) LCW (3 employees) NeoGov (1 employee) Yorba Linda Water District FY 2013/14 Budget Page 142 Human Resources Budget Section Detail (FY 2013/14) Risk Management Section Category Total Sub Acct Total Detail Amt 15,000 200 $100 100 100 8,000 8,000 230,000 230,000 60,000 60,000 $200 200 200 $1,500 1,500 1,500 1,000 400 $1,000 1,000 1,000 $317,400 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-7020-0600-00 Contractual Services $15,200 1-7020-0600-00 Contractual Services 15,200 Arc-Flash Assessments (9 sites) AED Medical Director Oversight 1-7020-0640-00 Dues, Memberships & Subscriptions 1-7020-0640-00 Dues, Memberships & Subscriptions PARMA Membership 1-7020-0690-00 Insurance $298,000 1-7020-0690-10 Tort Claims Tort Claims - < 15K 1-7020-0690-20 Liability Insurance ACWA-JPIA Liability Insurance 1-7020-0690-30 Property Insurance ACWA-JPIA Property Insurance 1-7020-0715-00 District Activities & Events 1-7020-0715-50 Meeting Supplies Meeting Supplies 1-7020-0780-00 Professional Services 1-7020-0780-00 Professional Services First Aid-Workers Compensation 1-7020-0810-00 Training $1,400 1-7020-0810-00 Training 1,400 Risk Management Training PARMA Workshop 1-7020-0830-00 Travel & Conferences 1-7020-0830-00 Travel & Conferences PARMA Conference (1 employee) Section Total Yorba Linda Water District FY 2013/14 Budget Page 143 Human Resources Budget Section Detail (FY 2013/14) Safety Section Category Total Sub Acct Total Detail Amt $2,000 2,000 2,000 500 100 350 $1,000 1,000 1,000 $300 300 300 $200 200 200 $30,000 30,000 30,000 $5,000 5,000 5,000 $39,450 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-7030-0600-00 Contractual Services 1-7030-0600-00 Contractual Services Industrial Hearing Management 1-7030-0640-00 Dues, Memberships, & Subscriptions $950 1-7030-0640-00 Dues, Memberships & Subscriptions 950 Cal-OSHA Reporter PASMA Pacific Safety Council - COSS 1-7030-0710-00 Materials 1-7030-0710-00 Materials First Aid Supplies (Field Backpacks) 1-7030-0715-00 District Activities and Events 1-7030-0715-50 Meeting Supplies Meeting/Training Supplies 1-7030-0760-00 Office Expense 1-7030-0760-30 Books & Publications Books & Publications 1-7030-0780-00 Training 1-7030-0780-00 Training Safety Program Consultant (Aspen) 1-7030-0810-00 Professional Development 1-7030-0810-10 OSHA Compliance OSHA Compliance Training Section Total Yorba Linda Water District FY 2013/14 Budget Page 144 Supplies & Services Summary by Department Section Administration Engineering Finance Information Technology Operations Board of Directors Administration Risk Management Safety FY 2013/14 Human Resources Department Yorba Linda Water District FY 2013/14 Budget Page 145 Information Technology Yorba Linda Water District FY 2013/14 Budget Page 146 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 147 Information Technology Sections & Responsibilities The Information Technology Department is responsible for the administration and coordination of the District’s information systems and computer network, including the Geographic Information System (GIS) and the Supervisory Control and Data Acquisition (SCADA). Section Responsibilities INFORMATION SYSTEMS Information Systems administers the development and maintenance of the District’s Information Systems, computer network and databases that allows for effective and efficient integration of computer technologies into the daily business practices of the District. It consists of the following: billing, accounting, operations an d engineering related information systems. It provides planning, employee technical training and coordinating services with contract consultants. Also included is technical support, which assists other departments with technology related issues by providin g help desk support. It provides user computer installations and configuration, technical support and coordinating services with support contract consultants. GEOGRAPHICAL INFORMATION SYSTEM (GIS) GIS is charged with building and maintaining the layers o f graphic data used by the District to produce visual representations and analysis for informed decision making in the water and sewer system. This is accomplished by maintaining the Geographic Information System (GIS), performing geospatial analysis of da ta and display data on GIS maps; preparing charts, graphs and displays; coordinating system needs with other departments; defining requirements for end users; coordinating services with contract consultants for maintenance agreements; researching information from records, surveys and assessor maps; performing field data collection; programming and scripting for customization of software applications. SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) Information Systems is responsible for PCs, telephones, cell phones, walkie-talkies, facsimiles, voice mail, routers, switches, VPN and firewalls. It is also responsible for internet and intranet connections; monitoring and securing the District’s computer network data traffic. SCADA is responsible for the communications and the hardware related to the District’s SCADA system. Communications includes radios, lease lines, and all other means for ensuring SCADA remote sites communicate with the District’s headquarters. Additionally, SCADA is responsible for all se nsors in the field that collect and saving about 5 year of historical information. The SCADA system provides Operators advanced fully automated controls 24/7/365 to meet the Districts objectives. Yorba Linda Water District FY 2013/14 Budget Page 148 Information Technology Sections & Responsibilities, Continued Strategic Plan Objectives/Goals Objectives derived from the Strategic Plan (pg. 19-29) and specific to the Board of Directors are detailed in the following chart. Objective SP Goal Improve connectivity for Computerized Maintenance and Managemen t System (CMMS) OE-1 Improve internet and intranet access availability by increasing Bandwidth OE-1 Integrate GIS with Hydraulic Model, CMMS, Valve Exercise and Hydrant Flushing OE-1 Replace and reprogram various PLCs OE-1 Improve radio communications OE-1 Adopt GIS Data Maintenance and Request procedures. OE-1 Implement Field GIS software (Underground Service Alert, As-built Lining and Red-lining) OE-1 Convert transferred sewer lines into GIS OE-1 Install a reliable backup power system at remote control sites. OE-1 Initiate a Comprehensive Backup OE-1 Performance Measures Yorba Linda Water District FY 2013/14 Budget Page 149 Information Technology Sections & Responsibilities, Continued Note: Server Up Time refers to the percentage of time each server is available for usage. Includes planned maintenance shutdowns. Accomplishments FY 2012/13  Successfully Implemented Computer Maintenance and Management System (CMMS) program for Valves, Sewers and Leaks  Upgraded IS firewalls Yorba Linda Water District FY 2013/14 Budget Page 150 Information Technology Sections & Responsibilities, Continued  Improved internet bandwidth with new contract with Time Warner replacing cable internet with fiber internet solution.  Negotiated new cell phone contract with Verizon Communications replacing Sprint/Nextel  Negotiated a new 3-year lease for Operations copier  Tablets deployed to all District Managers and Executive Secretary  Purchased mobile 80” Interactive Display for Board Training Room  Virtualized 6 District servers  Implemented iSCSi network for Storage Consolidation Project  Completed city sewer GIS conversion  Printed & distributed an Updated Water Atlas Book  Provided GIS Data and support for Northeast Planninng Study & Hydraulic Model  SCADA Segmentation Security project completed  Replaced and reprogram Hidden Hills PLC  Replaced and reprogram Spring View PLC  Upgraded Wonderware SCADA software to latest release & improved password security  Wireless system installed at Elk Mt. for redundant communications Yorba Linda Water District FY 2013/14 Budget Page 151 Information Technology Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 Proposed FY 2012/13 Proposed FY 2013/14 Administration Assistant General Manager 0.5 0.5 --- Information Systems Manager --1.0 1.0 1.0 0.5 0.5 1.0 1.0 1.0 Information Systems Information Systems Admin.1.0 1.0 1.0 1.0 1.0 Information Systems Tech I 1.0 1.0 1.0 1.0 1.0 Information Systems Tech II 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 GIS GIS Administrator -1.0 1.0 1.0 1.0 GIS Technician 1.0 0.5 0.5 0.5 0.5 1.0 1.5 1.5 1.5 1.5 SCADA Instrumentation Technician 1.0 1.0 1.0 1.0 1.0 SCADA Administrator 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Department Totals 6.5 7.0 7.5 7.5 7.5 Budgeted Positions Yorba Linda Water District FY 2013/14 Budget Page 152 Information Technology Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 626,082$ 633,879$ Fringe Benefits 114,468$ 100,390$ Mandatory Benefits 85,016$ 76,809$ Total Salary Related Expenses 828,066$ 813,578$ Supplies & Services Communications -$ -$ Contractual Services 137,540$ 138,520$ Data Processing 135,340$ 170,730$ Dues & Memberships 1,327$ 1,327$ Materials 14,275$ 11,275$ District Activities & Events 300$ 300$ Maintenance 76,370$ 84,950$ Non-Capital Equipment 67,500$ 98,100$ Office Expense 10,475$ 19,175$ Professional Services 43,000$ 56,000$ Professional Development 7,500$ 8,800$ Travel & Conferences 6,000$ 9,300$ Supplies & Services Sub-Total 499,627$ 598,477$ Yorba Linda Water District FY 2013/14 Budget Page 153 IT Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt 1,200 2,500 $3,700 Primary GL Category Sub Acct No./Sub Category Detail Item Description Section Total 1-6010-0830-00 Travel & Conferences $3,700 1-6010-0830-00 Travel & Conferences 3,700 Interop (April/May) WinConnections (November) Yorba Linda Water District FY 2013/14 Budget Page 154 IT Budget Section Detail (FY 2013/14) Information Systems Section Category Total Sub Acct Total Detail Amt 1,500 240 4,500 11,000 4,000 20,000 3,780 21,500 21,500 15,000 15,000 12,000 16,500 0 3,500 20,000 4,000 44,000 12,000 10,000 4,780 450 800 200 250 2,000 2,000 6,000 650 300 2,250 200 1,400 200 150 100 500 30 30 25 250 12 400 400 100 100 400 100 200 400 600 200 $300 300 3001-6020-0715-00 District Activities and Events 1-6020-0715-50 Meeting Supplies Meeting Supplies DVI, VGA, DB9, Display Port, HDMI, USB cables 1-6020-0710-60 Hardware Supplies 1,200 Hardware Supplies, AA & AAA batteries Desktop peripherals USB Drives USB Keys, SD / micro SD Cards 1-6020-0710-00 Materials $2,400 1-6020-0710-00 Materials Materials 1-6020-0710-49 Power Strips Power Strips 1-6020-0710-51 Cabling 700 Duplex 50/125 LC/LC fiber, CAT6A, CAT5e patch cabl Adapters 1-6020-0640-00 Dues, Memberships, & Subscriptions $847 1-6020-0640-00 Dues, Memberships & Subscriptions 847 MS TechNet Plus Subscription Smart Computing CPU PCWorld Misc Memberships Maximum PC PageR Monitoring Barracuda Message Archiver Energizer Annual Renewa1-6020-0620-47 Cell Phone Supplies 450 Batteries Holsters & Covers Chargers Kiwi Cat Tools Lenel Onguard Software Support Agreement Renewal Netmotion Mobility XE Premium Software MaintenanceTrend Micro NeatSuite Antivirus & Spyware (90 lic. VMWare vSphere (Essentials Plus Kit) Maintenance 1-6020-0620-30 Hardware Subscription Renewals 4,800 Barracuda Spam Firewall Energizer Annual Renewal BDR Monthly Charge for Offsite Backup Storage Watchguard x1250e Firewall UTM Renewal GP & Cogsdale annual Maintenance CityWorks Annual Maintenance Solar Winds Orion Monitoring Tool Maintenance Laserfiche Software Assurance Plan (LSAP) Enterprise Leave Manager for Dynamics GP Maint. Solar Winds Engineering's Toolkit Renewal 1-6020-0620-00 Data Processing $115,230 1-6020-0620-10 Software Purchases 23,500 New Software Solar Winds Mgmt. (APN, IP Address Mon.) CMMS Licensing 1-6020-0620-20 Software License Renewals 86,480 Novus Agenda Maintenance Renewal 1-6020-0600-33 Mobile Broadband Service Verizon Broadband Aircard Service inc. CMMS 1-6020-0600-34 Communication Lines 28,500 Time Warner Cable & Dedicated Internet Access 20x2 AT&T District Lines 1-6020-0600-30 Warranties & Service Contracts 27,780 Dell Hardware Service Contracts RMJ Tech. GPS Vehicle Tracking Service APC Symmetra Data Center UPS On-Site Service Renew1-6020-0600-32 Service for Cell Phones Cell Phone Service (Verizon) 1-6020-0600-00 Contractual Services $110,020 1-6020-0600-00 Contractual Services 1,740 Security Solutions: Annual Fire & Burglar Alarm Mo District Web Site Hosting 1-6020-0600-20 Lease Agreements 15,500 Konica Minolta Operations Copier Lease Konica Minolta Copier Leases for Admin Building Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 155 IT Budget Section Detail (FY 2013/14) Information Systems Section, Continued Category Total Sub Acct Total Detail Amt 1,000 1,000 2,000 2,000 400 200 400 400 1,500 1,500 300 1,600 2,000 10,000 6,000 600 4,800 6,400 10,000 800 1,000 200 2,200 200 800 800 500 1,000 1,500 1,000 300 300 100 100 125 9,000 50 200 200 400 200 2,000 2,000 3,500 18,000 10,000 1,000 1,000 $2,500 2,500 2,500 400 2,100 1,000 $336,672 Primary GL Category Sub Acct No./Sub Category Detail Item Description Section Total 1-6020-0810-00 Training 1-6020-0810-00 Training VM Ware Training 1-6020-0830-00 Travel & Conferences $3,500 1-6020-0830-00 Travel & Conferences 3,500 Mileage and Travel Reimbursement Intersect (October) CityWorks User's Conference (June) 31,500 Software Consulting GP 2013 Upgrade/Consulting CMMS Consulting 1-6020-0780-50 Technical Support Technical Support 1,000 Mice Blank DVD+R, CD Disc, etc. Keyboards Misc 1-6020-0780-00 Professional Services $34,500 1-6020-0780-11 Network/Hardware Consulting Network/Hardware Consulting 1-6020-0780-20 Software Consulting 1-6020-0760-00 Office Expense $10,275 1-6020-0760-00 Office Expense Business Cards 1-6020-0760-21 Printer Supplies 9,175 Konica Minolta Copier/Printer Supplies for Ops HP LaserJet Printers & Copier toners, fusers, in Konica Minolta Copier/Printer Supplies in Mail Roo 1-6020-0760-26 Desktop Supplies 1-6020-0750-41 Audio/Visual 2,500 LCD Monitors Digital Cameras 1-6020-0750-45 Telco Phones & Accessories 1-6020-0750-30 Tools & Equipment Data Center equipment (Rack & Cabinet) 1-6020-0750-35 Security 1,500 HID proximity badges for building access FABS 1-6020-0750-09 Networking Equipment 4,400 Misc Network Equipment such as Transceivers Network Storage Devices Network Office/cubicle Switches Data Center Switches KVM System Interface Pods 1-6020-0750-06 Desktops 6,600 Dell Optiplex PCs Thin Clients 1-6020-0750-07 Notebooks 21,200 Dell Latitude E-Series Tablets CMMS Notebooks 1-6020-0730-60 UPS & Back-up Power systems 1,900 UPS replacement batteries for desktops APC Symmetra Data Center UPS battery modules (12) 1-6020-0750-00 Non-Capital Equipment $49,300 1-6020-0750-00 Non-Capital Equipment 12,000 Non-Capital Equipment CMMS Equipment 1,400 Phone Switch Servicing Building Line Repairs Security Equipment Maintenance & Repair Cell Phone Servicing/replacement/repair 1-6020-0730-30 Cabling & WAN Communication Cabling (CAT6A, CAT5e, fiber) installation & rep 1-6020-0730-00 Maintenance $7,800 1-6020-0730-00 Maintenance Maintenance 1-6020-0730-06 Printer Servicing HP Printer Servicing 1-6020-0730-11 Telco/Phone Servicing Yorba Linda Water District FY 2013/14 Budget Page 156 IT Budget Section Detail (FY 2013/14) GIS Section Category Total Sub Acct Total Detail Amt 4,700 2,000 3,200 6,000 500 3,500 1,500 $5,500 5,500 5,500 8,500 8,500 100 100 $2,000 2,000 2,000 200 500 $38,200Section Total 1-6030-0810-00 Training 1-6030-0810-00 Training GIS Training 1-6030-0830-00 Travel & Conferences $700 1-6030-0830-00 Travel & Conferences 700 Mileage and Travel Reimbursement GIS ESRI User Conference AutoCAD & Map 3D Maintenance 1-6030-0750-00 Non-Capital Equipment 1-6030-0750-20 Printers New Plotter 1-6030-0760-00 Office Expense $8,600 1-6030-0760-21 Printer Supplies Print Sewer Atlas & Atlas Supplies( Paper & binder 1-6030-0760-30 Books & Publications Books 1-6030-0620-00 Data Processing $21,400 1-6030-0620-20 Software License Renewals 21,400 InfoWater Renewal & Upgrade Floating License Freeance Maintenance ArcEditor Concurrent Maintenance (2) ArcGIS Server Standard Enterprise Maintenance ArcView Single Use Maintenance ArcInfor Concurrent Maintenance Primary GL Category Sub Acct No./Sub Category Detail Item Description Yorba Linda Water District FY 2013/14 Budget Page 157 IT Budget Section Detail (FY 2013/14) SCADA Section Category Total Sub Acct Total Detail Amt 1,500 1,500 2,500 23,000 23,000 1,600 1,600 26,000 6,500 230 250 2,200 2,200 1,800 1,800 375 3,000 1,500 2,000 2,000 18,000 18,000 1,800 1,800 4,650 4,650 8,500 8,500 11,000 3,100 1,500 500 800 10,000 10,000 1,800 1,800 4,500 4,500 4,000 4,000 5,000 5,000 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-6040-0600-00 Contractual Services $28,500 1-6040-0600-30 Warranties & Service Contracts 5,500 Dell Servers Service contracts Cisco Smartnet premium (for Cisco 1842 routers) Cisco Smartnet premium (for Cisco 3825 router) 1-6040-0600-34 Communication Lines AT&T Circuits (T1, DSO's, 1MB's) 1-6040-0620-00 Data Processing $34,100 1-6040-0620-10 Software Purchases Misc. software 1-6040-0620-20 Software License Renewals 32,500 Wonderware Premium Support PLC Programing Support-Proworks32,Concept, & Unity1-6040-0640-00 Dues, Memberships, & Subscriptions $480 1-6040-0640-00 Dues, Memberships & Subscriptions 480 AWWA International Society of Automation 1-6040-0710-00 Materials $8,875 1-6040-0710-50 Electrical Supplies Electrical Supplies 1-6040-0710-60 Hardware Supplies Hardware Supplies 1-6040-0710-78 Meters & Sensors 4,875 Integral Manflods for Flow & Pressure Meters Level Indicators Flow Meter 1-6040-0730-00 Maintenance $77,150 1-6040-0730-15 Flow Meter Calibration Flow Meter Calibration 1-6040-0730-20 Electrical General Maintenance Electrical General Maintenance 1-6040-0730-25 Electrical Motor Control Center Work Motor Control Center 1-6040-0730-30 Cabling & WAN Communication Conduit Replacement / Wiring Replacement / WAN Com 1-6040-0730-40 Radio repairs & Servicing Radio repairs & Servicing 1-6040-0730-45 PLC Hardware 16,900 M340 system / PLC's Module replacements Terminal Blocks/Other parts Power supplies & componets Signal Conditioners-Converters 1-6040-0730-52 PLC Software PLC - SCADA Modifications 1-6040-0730-55 Security & Gas detectors Security & Gas detectors 1-6040-0730-60 UPS & Back-up Power systems UPS & Back-up 24VDC Power systems 1-6040-0730-61 Cooling A/C Servicing Cooling & A/C Service 1-6040-0730-62 Instrumentation Instrumentation Yorba Linda Water District FY 2013/14 Budget Page 158 IT Budget Section Detail (FY 2013/14) SCADA Section, Continued Category Total Sub Acct Total Detail Amt 4,500 4,500 2,000 2,000 8,000 8,000 1,950 1,950 1,550 1,550 6,500 6,500 5,000 5,000 8,000 8,000 5,800 5,800 $300 300 300 10,500 11,000 2,400 1,400 500 $1,400 1,400 1,400 $219,905 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-6040-0750-00 Non-Capital Equipment $43,300 1-6040-0750-05 Servers Server 1-6040-0750-07 Notebooks SCADA replacement laptop 1-6040-0750-09 Networking Equipment Field Routers, Switches, Fiber Device Servers, Mod 1-6040-0750-10 Desktops SCADA replacement 1-6040-0750-30 Tools & Equipment Tools & Equipment 1-6040-0750-35 Security Security 1-6040-0750-55 PLCs & Panels PLCs & Panels 1-6040-0750-65 Electrical Upgrades Electrical Upgrades 1-6040-0750-70 Redundant SCADA Communications Radio Systems Radio systems Communications & tower 1-6040-0760-00 Office Expense 1-6040-0760-30 Books & Publications Manuals/Books/Magazines 1-6040-0780-00 Professional Services $21,500 1-6040-0780-20 Software Consulting 21,500 PLC program Conversions to Unity SCADA system programing 1-6040-0810-00 Training $4,300 1-6040-0810-00 Training 4,300 Wonderware training PLC programing training Awwa training 1-6040-0830-00 Travel & Conferences 1-6040-0830-00 Travel & Conferences Awwa Conference Section Total Yorba Linda Water District FY 2013/14 Budget Page 159 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 160 Page Intentionally Left Blank Yorba Linda Water District FY 2013/14 Budget Page 161 Operations Yorba Linda Water District FY 2013/14 Budget Page 162 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 163 Operations Sections & Responsibilities Due to the complexity of the Yorba Linda Water District’s distribution and treatment systems, the California Department of Public Health Services (CDPHS) has classified the system at a Distribution Level 5, and a Treatment Level 2 system. The Operations Department is delegated the responsibilities of maintaining and overseeing the District’s water storage, production, pumping and distribution systems; sewer collection systems; production water wells and related equipment; fleet rolling stock and stationary equipment mechanical maintenance. These responsibilities are achieved through the following sections. Section Responsibilities OPERATIONS ADMINISTRATION The Operations Administration section is composed of three employees and their activities include the day-to-day supervision and administration of water and sewer maintenance, water production, materials procurement and inventory work. The department’s safety and risk management program are also undertaken in this section. WATER OPERATIONS AND MAINTENANCE This section is separated into specific areas and duties that are assigned to three crews: Leak Crew, Valve Crew and Hydrant Crew. Personnel are cross trained and are assigned to crews based on workloads and demands. The crews do not perform only single duties, but rather deal with other related aspects of the crew’s primary assignments. An example of the duties and an estimate of the number of work tasks for each crew, based on a 12 month period, are as follows:  Leak Crew - composed of five crew members; conducts repairs to approximately 22 main line breaks and 50 service lines, and replacement of 150 lines; replacement of 120 Angle Meter Stops (AMS) valves; installation of 140 new meters; and replacement of 150 stuck meters.  Valve Crew - composed of six crew members. This crew operates, as part of the District’s Preventive Maintenance (PM) program, one half of the District’s 10,706 system valves, repairs approximately 30 valves and replaces approximately fifty valves annually. Additionally, this crew i s called upon to perform valve operations for approximately 20 major line shut downs or isolations required to accommodate construction tie-ins to the system by contractors. Yorba Linda Water District FY 2013/14 Budget Page 164 Operations Sections & Responsibilities, Continued  Fire Hydrant Crew - composed of seven staff members. This crew services all of the District’s fire hydrants (3,881) annually. Nonfunctional hydrants, when detected, are repaired or replaced immediately. It is estimated that approximately 100 hydrants will need repair and approximately 50 will be replaced during the coming fiscal year. This crew’s additional related duties include:  Servicing Air Vac Air Release (AVAR) valves – The crew services approximately 330 system AVARs annually. It is estimated that approximately eight will be repaired and fifteen will be replaced during the year.  Water Main Flushing – The crew flushes all dead end mains (155) twice per year. Additionally, the crew performs any formal flushing requests which average about fifty per year.  Servicing of system Pressure Control Valves (PCVs). Setting and servicing is done annually to approximately 150 valves. Additionally, PCV adjustments are made as requests arise from the Production Division.  Fire Flow Testing - This crew conducts the physical hydrant testing when requested by the District’s Engineering Department. There is an average of twelve flow tests per year.  Field Customer Service Calls – The crew immediately responds to calls regarding water system complaints or problems. Each call is responded to with appropriate corrective action. Contact is made to inform the caller of the District’s action in resolving the problem. The combined number of calls handled by this crew and the after hours standby staff is in the area of 1,200 calls annually. SEWER OPERATIONS AND MAINTENANCE This section is charged with the operation and maintenance of the District’s sewer collection system and the related assets. Methods and means for collection system maintenance fall within the duties of the sewer crew. Yorba Linda Water District FY 2013/14 Budget Page 165 Operations Sections & Responsibilities, Continued  Sewer Collection Crew – consists of seven members. This crew performs maintenance tasks that are intended to keep the collection system performing as designed and to extend the life of assets where possible. The system maintenance tasks are as follows:  Main line cleaning – The crew cleans approximately 235 miles of sewer main lines annually. This maintenance includes cutting of intrusive tree roots from the sewer lines where encountered.  Enhanced Maintenance Areas (EMAs) – EMAs are those areas that require attention more than just once per year. The District has 45 EMAs that are cleaned quarterly and 49 that are cleaned monthly.  CCTV Inspection – Inspection of the District’s sewer lines is conducted at a rate of one sixth of the system or 39 miles yearly. Damage found to the main lines is prioritized for repair and dealt with accordingly.  Approximately twenty four line repairs were completed in addition to eight manholes being rehabilitated during fiscal year 2011-2012.  Sewage Lift Stations – Two sewage lift stations are operated and maintained by this crew. They assure the stations are operational and respond to any station SCADA alarms. WATER PRODUCTION The primary objective of the production section is to supply quality drinking water on a daily basis that meets and or exceeds the California Department of Health Services drinking water standards at the most economical cost to our customers. The Production Section, which consists of five staff members, is responsible for the operation and maintenance of the District’s water supply, water connivance, water storage, water disinfection, and water treatment systems. The primary assets in the distribution system includes 38 booster pumps, 9 water wells, 6 chlorine generating systems, 12 chlorine analyzers, 3 import water connections, 14 reservoirs, 2 reservoir mixing systems, 54 pressure regulating stations, 2 stationary backup power generators, 3 trailer mounted emergency pumps, and 1 traile r mounted emergency generator. Yorba Linda Water District FY 2013/14 Budget Page 166 Operations Sections & Responsibilities, Continued Activities performed by the production section include, overseeing and or performing the operation and maintenance of the system’s assets, ensuring reservoirs have suf ficient water supplies to meet the daily demands, monitoring water quality, chlorine disinfection levels, power demands, water supply allocations, and weather patterns and ensuring the District’s water supply and facilities are secured from potential threa ts and contaminations. The water system is operated and maintained 24 hours per day, 365 days per year. This is done by utilizing a Supervisory Control and Data Acquisition, (SCADA) system equipped with alarm notifications. It is critical to the operation of the water system for the Production Section and the IT Department to work very closely with common goals to maintain the SCADA infrastructure and set up control strategies that best support the operational goals of the District. Some of the SCADA infrastructure includes human machine interface (HMI’s), level and pressure transmitters, flow meters, chlorine analyzers and program software updates. MECHANICAL SERVICES This section is composed of three mechanics, which provide for the maintenance and repair to the District’s vehicle fleet, heavy equipment, stationary engines, pumps, and assorted small equipment. Additionally, they provide interface and compliance reporting to regulatory agencies such as: AQMD, CARB, OCFA, EAP, BAR and OCHCA on behalf of YLWD. This section is responsible for the District’s following assets: Rolling Stock:  Maintains 54 vehicles, including 2 sewer combo trucks, 1 hydro excavator and 4 dump trucks, 3 backhoes, 1 forklift, and 12 trailers used for emergency pumps, generator, light boards, air compressors, etc. Small Equipment:  Maintains over 60 pieces of small equipment including pneumatic pavement breakers, soil tamps, water pumps, electrical generators, air compressors, concrete and wood saws, etc. Large Stationary Internal Combustion Engines:  Maintains the engines that are the prime movers for 2 large generators, 4 deep well water pumps, and 8 water system booster pumps. Yorba Linda Water District FY 2013/14 Budget Page 167 Operations Sections & Responsibilities, Continued FACILITIES MAINTENANCE One staff member oversees this section and is responsible for the maintenance and upkeep of District buildings and facilities sites. The staff interfaces and oversees work of hired contractors as it relates to facility maintenance.  Landscape Maintenance - all services both to maintain the District’s primary site as well as performing weekly, monthly, and quarterly tasks at all of the District’s pump and reservoir locations.  Electrical Repairs - all repairs to building lighting both inside and out in addition to any electrical problems at other District sites.  Janitorial Maintenance - interface and oversight in assurance that contract terms are being met.  AC and Heating - oversight for service scheduled quarterly at the Mira Loma facility, including the warehouse and operations buildings.  Fire sprinkler and equipment inspection required per OCFA’s annual reporting requirements.  Responsible for the hiring of contractors to provide road and compound type repairs, and miscellaneous fence and building repairs.  Staff in this section works with the Public Affairs staff to support District activities such as coordinating bottle water deliveries and setting up for special events, etc.  Current projects include working with the Production Division in repairing and painting fencing at reservoir sites. This is part of an ongoing upkeep program at these sites. Yorba Linda Water District FY 2013/14 Budget Page 168 Operations Sections & Responsibilities, Continued Strategic Plan Objectives/Goals Objectives derived from the Strategic Plan (pg. 19-29) and specific to the Board of Directors are detailed in the following chart. Performance Measures Note: Average Cl2 Residuals by Reservoir is for import water reservoirs only. Objective SP Goal Evaluate How Each Department Might Make Further Use of Existing Technology OE-1 Provide Support and Encourage Employee Training WE-1 Establish Career Development Expectations of Existing Employees WE-1 Develop Methodologies to Assist Employees in Attaining Career Expectations WE-1 Yorba Linda Water District FY 2013/14 Budget Page 169 Operations Sections & Responsibilities, Continued Yorba Linda Water District FY 2013/14 Budget Page 170 Operations Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Operations Assistant 1.0 1.0 --- Operations Assistant/Storekeeper --1.0 1.0 1.0 Operations Manager 1.0 1.0 1.0 1.0 1.0 Water Maintenance Superintendent 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Water Operations & Maintenance Maint. Distribution Operator II 5.0 5.0 5.0 7.0 7.0 Maint. Distribution Operator III 2.0 3.0 3.0 3.0 3.0 Maintenance Worker I 6.0 6.0 6.0 5.0 5.0 Sr. Maint. Distribution Operator 3.0 3.0 3.0 3.0 3.0 16.0 17.0 17.0 18.0 18.0 Sewer Operations & Maintenance Maint. Distribution Operator II 2.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator III 1.0 1.0 1.0 1.0 1.0 Maintenance Worker I 1.0 2.0 5.0 4.0 4.0 Sr. Maint. Distribution Operator 1.0 1.0 1.0 1.0 1.0 5.0 5.0 8.0 7.0 7.0 Water Production Chief Plant Operator 1.0 1.0 1.0 1.0 1.0 Senior Plant Operator 1.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator II -1.0 --- Maint. Distribution Operator III 1.0 ---- Maintenance Worker I 1.0 ---- Plant Operator II 3.0 3.0 3.0 3.0 3.0 7.0 6.0 5.0 5.0 5.0 Mechanical Services Mechanic II 1.0 1.0 1.0 1.0 1.0 Mechanic III 1.0 1.0 1.0 1.0 1.0 Senior Fleet Mechanic 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Facilities Maintenance Facilities Maintenance 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Department Totals 35.0 35.0 37.0 37.0 37.0 Yorba Linda Water District FY 2013/14 Budget Page 171 Operations Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 2,570,777$ 2,650,069$ Fringe Benefits 568,404$ 556,290$ Mandatory Benefits 401,181$ 385,973$ Total Salary Related Expenses 3,648,362$ 3,700,332$ Supplies & Services Communications 3,500$ 500$ Contractual Services 170,600$ 153,900$ Dues & Memberships 2,175$ 700$ Fees & Permits 31,100$ 37,900$ Materials 460,750$ 548,500$ District Activities & Events 500$ 1,500$ Maintenance 305,400$ 393,900$ Non-Capital Equipment 39,100$ 34,100$ Office Expense 9,000$ 9,500$ Professional Services 10,000$ -$ Professional Development 16,000$ 10,900$ Travel & Conferences 4,900$ 4,150$ Utilities 85,000$ 90,800$ Vehicle Expense 333,900$ 367,150$ Supplies & Services Sub-Total 1,471,925$ 1,653,500$ Yorba Linda Water District FY 2013/14 Budget Page 172 Operations Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $9,000 9,000 9,000 $1,500 1,500 1,500 3,500 3,500 400 400 1,500 1,500 100 100 4,000 4,000 500 500 300 300 100 100 300 300 500 500 $21,700 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5010-0710-00 Materials 1-5010-0710-65 PPE Equipment PPE Equipment 1-5010-0715-00 District Activities and Events 1-5010-0715-50 Meeting Supplies Meeting Supplies $9,500 1-5010-0760-00 Office Expense Misc Supplies 1-5010-0760-10 Paper Paper Supplies 1-5010-0760-20 Printer Ink Printer Ink 1-5010-0760-30 Books & Publications Manuals/Books/Magazines Registration 1-5010-0760-40 Breakroom Supplies Breakroom Supplies 1-5010-0810-00 Training $800 1-5010-0810-00 Training Training 1-5010-0810-40 Certificate Reimbursment Certificate Reimbursement 1-5010-0760-00 Office Expense Section Total 1-5010-0830-00 Travel & Conferences $900 1-5010-0830-10 Travel Travel 1-5010-0830-30 Meals Meals 1-5010-0830-40 Registration Yorba Linda Water District FY 2013/14 Budget Page 173 Operation Budget Section Detail (FY 2013/14) Water Operation & Maintenance Section Category Total Sub Acct Total Detail Amt $9,700 9,700 9,700 2,000 2,000 12,000 12,000 5,500 5,500 27,500 27,500 15,000 15,000 3,000 3,000 60,000 60,000 75,000 75,000 140,000 140,000 10,000 10,000 7,000 7,000 8,000 8,000 1,500 1,500 3,000 3,000 85,000 85,000 14,500 14,500 3,500 3,500 3,000 3,000 5,000 5,000 165,000 165,000 35,000 35,000 700 700 500 500 8,000 8,000 1,000 1,000 4,500 4,500 1,000 1,000 300 300 200 200 500 500 $706,900 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5020-0600-00 Contractual Services 1-5020-0600-50 Uniforms Uniforms 1-5020-0645-00 Fees & Permits $19,500 1-5020-0645-25 NPDES/RWQCB NPDES Deminimus (RWQCB) 1-5020-0645-45 Landfill (Orange County & Dan Copp) Landfill (Orange County & Dan Coop) 1-5020-0645-55 Encroachment Permits Encroachment Permits 1-5020-0710-00 Materials $456,000 1-5020-0710-05 Road Material Road Material 1-5020-0710-13 Air-Vac Parts Air-Vac parts 1-5020-0710-15 Cla-Valve Parts Cla Valve Parts 1-5020-0710-25 Hydrant Repair Parts Hydrant Repair Parts 1-5020-0710-30 Valve Repair Parts Valve Repair Parts 1-5020-0710-40 Replacement Meters Replacement Meters 1-5020-0710-50 Replacement MXU MXU's 1-5020-0710-55 Meter Boxes/Lids/Vaults Meter Boxes/Lids/Vaults 1-5020-0710-60 Hardware Supplies Hardware Supplies 1-5020-0710-81 Welding Supplies Welding Supplies 1-5020-0710-85 Cleaning/Painting Supplies Cleaning/Painting Supplies 1-5020-0710-90 Water Service Repair Parts Water Service Repair Parts 1-5020-0710-94 Miscellaneous Warehouse Parts Miscellaneous Warehouse Parts 1-5020-0710-96 Ready Mix Concrete Ready Mix Concrete 1-5020-0710-98 Landscape Supplies Landscape Supplies 1-5020-0730-00 Maintenance $205,700 1-5020-0730-00 MAINTENANCE (E) Maintenance 1-5020-0730-66 Asphalt Paving Asphalt Paving 1-5020-0730-67 Concrete Repair Concrete Repair 1-5020-0730-72 Safety Equipment Repairs Safety Equipment Repairs 1-5020-0750-00 Non-Capital Equipment $9,500 1-5020-0750-15 Equipment Rental Equipment Rental 1-5020-0750-30 Tool & Equipment Tool & Equipment Registration 1-5020-0750-50 Safety Equipment Traffic Cones, Barricades, and Signs 1-5020-0810-00 Training $5,500 1-5020-0810-00 Training Training 1-5020-0810-40 Certificate Reimbursment Certificate Reimbursement Section Total 1-5020-0830-00 Travel & Conferences $1,000 1-5020-0830-10 Travel Travel 1-5020-0830-30 Meals Meals 1-5020-0830-40 Registration Yorba Linda Water District FY 2013/14 Budget Page 174 Operation Budget Section Detail (FY 2013/14) Sewer Operation & Maintenance Section Category Total Sub Acct Total Detail Amt $500 500 500 $1,900 1,900 1,900 3,000 3,000 1,900 1,900 1,000 1,000 $300 300 300 1,000 1,000 15,000 15,000 60,000 60,000 8,000 8,000 30,000 30,000 5,000 5,000 10,000 10,000 700 700 8,000 8,000 1,000 1,000 2,200 2,200 300 300 200 200 100 100 300 300 $800 800 800 25,000 25,000 1,000 1,000 8,000 8,000 14,000 14,000 $199,200 Primary GL Category Sub Acct No./Sub Category Detail Item Description 2-5030-0580-00 Communications 2-5030-0580-00 COMMUNICATIONS (E) FOG Materials 2-5030-0600-00 Contractual Services 2-5030-0600-50 Uniforms Uniforms 2-5030-0645-00 Fees & Permits $5,900 2-5030-0645-20 FOG Inspection & Fees (OCSD) 2-5030-0645-30 WDR - SSO (SWRCB) WDR - SSO (SWRCB) 2-5030-0645-55 Encroachment Permits Encroachment Permits 2-5030-0640-00 Dues, Memberships, 2-5030-0640-00 Dues, Memberships, Subscriptions CWEA Memberships 2-5030-0710-00 Materials $16,000 2-5030-0710-60 Hardware Supplies Hardware Supplies 2-5030-0710-92 Sewer Main Repair Parts Sewer Main Repair Parts 2-5030-0730-00 Maintenance $113,700 2-5030-0730-59 Sewer Line Repairs Sewer Line Repairs 2-5030-0730-65 Vector Control In Manholes Vector Control in Manholes 2-5030-0730-66 Asphalt Paving Asphalt Paving 2-5030-0730-67 Concrete Repair Concrete Repair 2-5030-0730-71 CCTV Repairs CCTV Repairs 2-5030-0730-72 Safety Equipment Repairs Safety Equipment Repairs 2-5030-0750-00 Non-Capital Equipment $9,000 2-5030-0750-30 Tools & Equipment Tools & Equipment 2-5030-0750-50 Safety Equipment Traffic Cones, Barricades, and Signs 2-5030-0810-00 Training $2,500 2-5030-0810-00 Training 2-5030-0810-40 Certificate Reimbursement Certificate Reimbursement 2-5030-0830-00 Travel & Conferences $600 2-5030-0830-10 Travel Travel 2-5030-0830-30 Meals Meals 2-5030-0830-40 Registration Registration 2-5030-0870-00 Utilities 2-5030-0870-10 Electric 2-5030-0890-00 Vehicle Expenses $48,000 2-5030-0890-46 Vehicle Expense: Sewer Vehicle Maintenance OPS - Sewer Vehicle Maint 2-5030-0890-47 Vehicle Expense: Sewer Equipment Maintenance OPS - Sewer - Equipment Maintenance 2-5030-0890-48 Vehicle Expense: Sewer Gas OPS - Sewer - Gas 2-5030-0890-49 Vehicle Expense: Sewer Diesel OPS - Sewer - Diesel Section Total Yorba Linda Water District FY 2013/14 Budget Page 175 Operation Budget Section Detail (FY 2013/14) Water Production Section Category Total Sub Acct Total Detail Amt 2,500 2,500 800 800 350 50 4,000 4,000 10,000 10,000 2,500 2,500 30,000 30,000 5,000 5,000 500 500 4,500 4,500 5,000 5,000 10,000 10,000 2,000 2,000 6,000 6,000 5,000 5,000 1,000 1,000 2,500 2,500 1,500 1,500 600 600 200 200 200 200 500 500 $95,200 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5040-0600-00 Contractual Services $3,300 1-5040-0600-25 Distribution System Disinfection Distribution System Disinfection 1-5040-0600-50 Uniforms Uniforms 1-5040-0640-00 Dues, Memberships, Subscriptions $400 1-5040-0640-00 Dues, Memberships & Subscriptions 400 AWWA Memberships OCWA Memberships 1-5040-0710-00 Materials $52,000 1-5040-0710-17 Pump Repair Parts Pump Parts 1-5040-0710-35 CL2 Parts CL2 Parts 1-5040-0710-60 Hardware Supplies Hardware Supplies 1-5040-0710-75 Salt Salt 1-5040-0710-84 Production Repair Parts Valves, Gauges, AV, etc. 1-5040-0710-85 Cleaning/Painting Supplies Cleaning/Painting Supplies 1-5040-0730-00 Maintenance $32,500 1-5040-0730-05 CL2 System Service CL2 System Service 1-5040-0730-10 Electrical Motor Repairs Electrical Motor Repairs/Services 1-5040-0730-20 Electrical General Maintenance Electric General Maintenance 1-5040-0730-24 Reservoir Repairs Reservoir Repairs 1-5040-0730-25 Reservoir Inspections & Cleaning Reservoir Inspections & Cleaning 1-5040-0730-75 Pump Station Repairs Pump Station Repairs 1-5040-0750-00 Non-Capital Equipment $3,500 1-5040-0750-30 Tools & Equipment Tools & Equipment 1-5040-0750-90 Emergency Equipment Supplies Hoses/Fittings/Cabling for Pumps/Generators 1,000 City Works User Conference Registration 1-5040-0810-00 Training $2,100 1-5040-0810-00 Training Training 1-5040-0810-40 Certificate Reimbursement Certificate Reimbursment Section Total 1-5040-0830-00 Travel & Conferences $1,400 1-5040-0830-10 Travel Travel 1-5040-0830-30 Meals Meals 1-5040-0830-40 Registration Yorba Linda Water District FY 2013/14 Budget Page 176 Operation Budget Section Detail (FY 2013/14) Mechanical Services Section Category Total Sub Acct Total Detail Amt $1,500 1,500 1,500 8,000 8,000 350 350 100 100 1,500 1,500 2,500 2,500 1,500 1,500 500 500 5,000 5,000 $250 250 250 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5050-0600-00 Contractual Services 1-5050-0600-50 Uniforms Uniforms 1-5050-0645-00 Fees & Permits $9,950 1-5050-0645-05 AQMD Permits AQMD Permits 1-5050-0645-15 E.P.A.. Fees E.P.A. Fees 1-5050-0645-35 Haz Mat Fees (OCFA) HAZ Mat Fees (OCFA) 1-5050-0645-60 CARB Fees C.A.R.B Fee 1-5050-0710-00 Materials $4,500 1-5050-0710-60 Hardware Supplies Hardware Supplies 1-5050-0710-80 Mech. Shop Supplies Mech. Shop Supplies 1-5050-0710-81 Welding Supplies Welding Supplies 1-5050-0750-00 Non-Capital Equipment $10,000 1-5050-0750-40 Mech Shop Equipment 10,000 Misc Mech Shop Equipment/Tools Power Train Lift 1-5050-0810-00 Training 1-5050-0810-40 Certificate Reimbursment Certificate Reimbursment Yorba Linda Water District FY 2013/14 Budget Page 177 Operation Budget Section Detail (FY 2012/13) Mechanical Services Section, Continued Category Total Sub Acct Total Detail Amt 500 500 750 750 13,200 13,200 4,000 4,000 9,300 9,300 3,000 3,000 50,000 50,000 5,000 5,000 63,000 63,000 24,000 24,000 3,000 3,000 500 500 13,000 13,000 2,000 2,000 3,800 3,800 1,000 1,000 1,900 1,900 1,000 1,000 1,000 1,000 2,700 2,700 105,000 105,000 9,000 9,000 2,500 2,500 $345,350 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5050-0890-00 Vehicle Expenses $319,150 1-5050-0890-10 Admin - Gas Admin - Gas 1-5050-0890-11 Admin - Vehicle Maint Admin - Vehicle Maint 1-5050-0890-20 Finance - Gas Finance - Gas 1-5050-0890-21 Finance - Vehicle Maint Finance - Vehicle Maint 1-5050-0890-30 Engineering - Gas Engineering - Gas 1-5050-0890-31 Engineering - Vehicle Maint Engineering - Vehicle Maint 1-5050-0890-42 OPS - Water - Vehicle Maint OPS Water Vehicle Maintenance 1-5050-0890-43 OPS - Water - Equipement Maint OPS - Water Equipment Maintenance 1-5050-0890-44 OPS - Water - Gas OPS - Water - Gas 1-5050-0890-45 OPS - Water - Diesel OPS - Water - Diesel 1-5050-0890-50 OPS - Production Vehicle Maint OPS - Production Vehicle Maint 1-5050-0890-51 OPS - Production Equipment Maint OPS - Production Equipment Maint 1-5050-0890-52 OPS - Production - Gas OPS - Production - Gas 1-5050-0890-53 OPS - Mech Svcs - Vehicle Maint OPS Mech Svcs - Vehicle Maint 1-5050-0890-54 OPS - Mech Svcs - Gas OPS - Mech Svcs - Gas 1-5050-0890-55 OPS - Facilities - Vehicle Maint OPS - Facilities - Vehicle Maint 1-5050-0890-56 OPS - Facilities - Gas OPS - Facilities - Gas 1-5050-0890-57 OPS - Tool Repair OPS - Tool Repair 1-5050-0890-70 IT - Vehicle Maint IT - Vehicle Maintenance 1-5050-0890-71 IT - Gas IT - Gas 1-5050-0890-80 Stationary Engine Maint Stationary Engine Maint 1-5050-0890-81 Stationary Engine Emissions Testing Stationary Engine Emissions Testing 1-5050-0890-90 Hazardous Materials Disposal Haz Mat Disposal Section Total Yorba Linda Water District FY 2013/14 Budget Page 178 Operation Budget Section Detail (FY 2013/14) Facilities Maintenance Section Category Total Sub Acct Total Detail Amt 25,000 25,000 5,500 5,500 60,000 60,000 40,000 40,000 3,500 3,500 3,500 3,500 1,050 1,050 1,500 1,500 2,000 2,000 4,500 4,500 3,000 3,000 1,000 1,000 500 500 15,000 15,000 5,000 5,000 2,000 2,000 10,000 10,000 5,000 5,000 5,000 5,000 100 100 2,000 2,000 $90,000 90,000 90,000 $285,150 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5060-0600-00 Contractual Services $137,500 1-5060-0600-05 AC & Heating AC & Heating 1-5060-0600-29 Disposal Service Disposal Service 1-5060-0600-35 Janitorial Service Janitorial Service 1-5060-0600-40 Landscape Service Landscape Service 1-5060-0600-45 Pest Control Service Pest Control Service 1-5060-0600-50 Uniforms Uniforms & Mats 1-5060-0645-00 Fees & Permits $2,550 1-5060-0645-00 FEES & PERMITS (E) Alarm Fees 1-5060-0645-35 Haz Mat Fees (OCFA) Haz Mat Fees (OCFA), Permits 1-5060-0710-00 Materials $11,000 1-5060-0710-00 Materials General Materials 1-5060-0710-10 Building Repair Parts Building Repair Parts 1-5060-0710-60 Hardware Supplies Hardware Supplies 1-5060-0710-85 Cleaning/Painting Supplies General Cleaning/Painting Supplies 1-5060-0710-98 Landscape Supplies Landscape Supplies 1-5060-0730-00 Maintenance $42,000 1-5060-0730-00 Maintenance Misc Facility Maint (Doors, fences, etc.) 1-5060-0730-20 Electrical General Maintenance Electrical Repair Work 1-5060-0730-35 Fire Extinguisher Maint/Calibration Fire Extinguisher Maint/Calibration 1-5060-0730-50 Painting & Fencing Painting 1-5060-0730-66 Asphalt Paving Asphalt Paving 1-5060-0730-67 Concrete Repair Concrete Repair 1-5060-0750-00 Non-Capital Equipment $2,100 1-5060-0750-00 Non-Capital Equipment General Tools/Parts 1-5060-0750-30 Tools & Equipment Tools & Equipment 1-5060-0870-00 Utilities 1-5060-0870-10 Electric Electric Section Total Yorba Linda Water District FY 2013/14 Budget Page 179 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 180 Appendix Yorba Linda Water District FY 2013/14 Budget Page 181 List of Acronyms AAR – After Action Report ACP- Asbestos Cement Pipe ACWA- Association of California Water Agencies ACWA/JPIA- ACWA’s Joint Powers Insurance Authority AF (af) - Acre Foot (1af = 325,851 gallons) AFY- Acre Feet per Year (rate of flow) AMP- Asset Management Plan AMS- Angle Meter Stop (Service shut off valve before the meter) AQMD- Air Quality Management District ASCE- American Society of Civil Engineers AWWA- American Water Works Association BEA- Basin Equity Assessment BMP- Best Management Practices BPP- Basin Production Percentage BPS- Booster Pump Station Brown Act- “Ralph M. Brown Act” enacted by the State Legislature governing all meetings of legislative bodies of local agencies CAFR- Comprehensive Annual Financial Report CALFED- The California and Federal Bay Delta Program. Addresses water management issues associated with the Bay Delta System CCR- Consumer Confidence Report ccf- 100 cubic feet (volume equal to approximately 748 gallons of water). Also used as one billing unit. Can also be known as “hcf” CDPH- California State Department of Public Health CEQA- California Environmental Quality Act CERCLA- Comprehensive Environmental Response, Compensation and Liability Act cf- cubic feet (volume equal to 7.48 gallons of water) CFR- Code of Federal Regulations cfs- cubic feet per second (rate of flow) CIP – Capital Improvement Project CIWQS- California Integrated Water Quality Systems COG – Continuity of Government COOP – Continuity of Operations COP – Critical Infrastructure Protection CORPs- United States Army Corps of Engineers CRWUA- Colorado River Water Users Association CSMFO- California Society of Municipal Finance Officers CUWA- California Urban Water Agencies CUWCC- California Urban Water Conservation Council CWEA- California Water Environment Association DIP- Ductile Iron Pipe DO- Dissolved Oxygen DWR- Department of Water Resources (State) Yorba Linda Water District FY 2013/14 Budget Page 182 List of Acronyms, Continued EMAC – Emergency Management Assistance Compact EOC – Emergency Operations Center EOP – Emergency Operations Plan ERP – Emergency Response Plan EPA- Environmental Protection Agency (Federal) ET- Evapotranspiration Rate (rate water evaporates off plants) ETOR- Employee Time Off Request ETWD- El Toro Water District FEMA- Federal Emergency Management Agency FOG- Fats Oils & Grease Program FTE- Full-Time Equivalent (number of employees) GFOA- Government Finance Officers Association GIS- Geographic Information System GPC- Gallons per Capita GPCD- Gallons per Capita per Day GPM- Gallons per Minute GPS- Global Positioning System GSWC- Golden State Water Company GW- Groundwater GWRS- Groundwater Replenishment System (OCWD Water Treatment System) HP- Horsepower (unit of mechanical energy) IC – Incident Commander ICS – Incident Command System IRWD- Irvine Ranch Water District IW- Import Water KW- Kilowatt (unit of electrical energy) KWh- Kilowatt-hour (rate of energy use or delivery) LBCWD- Laguna Beach Community Water District MCL- Maximum Contaminant Level MCWD- Mesa Consolidated Water District Met- Metropolitan Water District of Southern California (aka MWD) MG- Million Gallons mg/l- Milligrams per liter (unit of concentration equivalent to ppm) MGD- Million Gallons per Day MNWD- Moulton Niguel Water District MOA – Memorandum of Agreement MOU – Memorandum of Understanding MWD- Metropolitan Water District of Southern California (aka Met) MWDOC- Municipal Water District of Orange County NIMS – National Incident Management System NPDES- National Pollutant Discharge Elimination Systems NRP – National Response Plan NWS- National Weather Service Yorba Linda Water District FY 2013/14 Budget Page 183 List of Acronyms, Continued OA – Operational Area OCSD- Orange County Sanitation District OCWD- Orange County Water District PIP- Performance Improvement Plan ppb- parts per billion ppm- parts per million ppt- parts per trillion PRS- Pressure Reducing Station (multiple PRV’s usually in a vault) PRV- Pressure Reducing Valve REOC – Regional Emergency Operations Center RFP – Request for Proposal RO- Reverse Osmosis (treatment) RWQCB- Regional Water Quality Control Board (State) S. A.- Seasonally Adjusted SAR – Santa Ana River SCADA- Supervisory Control and Data Acquisition system SCWD- South Coast Water District SDWA- Safe Drinking Water Act (Federal) SEMS – Standardized Emergency Management System SMWD- Santa Margarita Water District SOC – State Operations Center SOP – Standard Operating Procedure SSMP-Sewer System Management Plans SSO- Sanitary Sewer Overflow SWP- State Water Project TCWD- Trabuco Canyon Water District tds- Total Dissolved Solids ug/l- Micrograms per liter (unit of concentration equivalent to ppb) USGS- United States Geological Survey (Federal) UV- Ultra-Violet Light Radiation (water treatment) UWMP- Urban Water Management Plan VCP- Vitrified Clay Pipe (sewer pipe) WDR- Waste Discharge Requirements (State) WEF- Water Environment Federation (counterpart to AWWA for the wastewater industry) WTP- Water Treatment Plant Yorba Linda Water District FY 2013/14 Budget Page 184 Glossary of Terms Accrual Basis of Accounting: The basis of accounting under which transactions are recognized when they occur, regardless of the timing of cash receipts and disbursements. Acre-Foot: The volume of water that will cover one acre to a depth of one foot. One acre equals 435.6 units or 325,850 gallons. Appropriation: A funding authorization made by the Board, which permits the District to incur obligations and to make expenditures of resources. Assets: Resources owned or held by the District that have monetary value Balanced Budget: Budgeted revenues are sufficient to cover all budgeted expenditures, principle payments on long-term debt, and minimum funding of all reserve requirements as required by the District’s reserve policy. Bond: A written promise to pay a sum of money on a specific date or dates at a specified interest rate. The interest payments and the repayment of the principal are authorized in a District bond resolution. Common types of bonds are General Obligation (GO) bonds and Certificates of Participation (COPs). These are frequently used for construction of large capital projects such as buildings, reservoirs, pipelines and pump stations. California Society of Municipal Finance Officers (CSMFO): A statewide organization servicing all California municipal finance professionals whose purpose is to promote excellence in financial management through innovation, continuing education and the professional development of its members. Capital Budget: The portion of the annual budget that appropriates funds for the purchase of capital equipment items and capital improvements. These expenditures are separated from regular operating items, such as salaries and office supplies. Capital Equipment: Fixed assets such as vehicles, computers, furniture, technical instruments, equipment, etc. which have a life expectancy of more than 2 years and a value of greater than $5,000. Capital Expenditures: Expenditure on an item that meets the meets the District’s $5,000 threshold for capitalization. Also referred to in the Budget as Vehicle and Equipment (See Capital Equipment) Capital Improvement: Expenses related to the construction, rehabilitation and modernization of District owned and operated infrastructure. Yorba Linda Water District FY 2013/14 Budget Page 185 Glossary of Terms, Continued Capital Replacement: Expenses related to major replacements of existing facilities or systems. Certificates of Participation (COP): A long-term debt instrument authorized for construction or acquisition of facilities and equipment. Debt: An obligation resulting from the borrowing of money or from the purchase of goods and services. These include bonds and accounts payables. Debt Service: The District’s obligation to pay the principal and interest of bonds and other debt instruments according to a predetermined payment schedule. Deferred Revenue: Revenue that is not recognized in the period in which received because they are not “available” until a subsequent period. Depreciation: An expense recorded to allocate a tangible asset’s cost over its useful life. Designated: A term that describes assets or equity set aside by action of the Board; as distinguished from assets or equity set aside in conformity with requirements of donors, grantors, or creditors. Enterprise Fund: Fund established to account for the financing of self -supporting enterprises, such as a utility fund, which render services primarily to the public. Expenditures/Expenses: A charge incurred, whether paid or unpaid, for operation, maintenance, interest, and other charges presumed to benefit the current fiscal period. Fiscal Year: A 12-month period of time to which the annual budget applies and at the end of which a government determines its financial position and the results of its operations. The District has specified July 1 to June 30 as its fiscal year. Fund Balance/Fund Equity: See “Net Assets” Geographic Information System (GIS): A system combining computer hardware, software, and geographic data for collecting, storing, an alyzing and displaying geographically referenced information. Generally Accepted Accounting Principles (GAAP): Accounting and financial reporting standards, conventions, and practices that have authoritative support from standards-setting bodies such as the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board.(FASB). Yorba Linda Water District FY 2013/14 Budget Page 186 Glossary of Terms, Continued Governmental Account Standards Board (GASB): National advisory board of accounting standards for public agencies. The Board identifies procedures, methods and standards for presenting the financial condition of public agencies. Government Finance Officers Association (GFOA): National organization whose purpose is to enhance and promote the professional management of go vernments for the public benefit by identifying and developing financial policies and best practices and promoting their use through education, training, facilitation of member networking, and leadership. Groundwater Replenishment Assessment: An assessment paid to Orange County Water District (OCWD) based upon the number of acre -feet of groundwater produced by the District. Infrastructure: The accumulated pipelines and storage facilities of the District, including meters, valves, pumps, filters and othe r appurtenances, whether constructed by the District or dedicated by private entities. Interest Income: Earnings from the investment portfolio. Liabilities: Present obligations of the District arising from past events. Locke Ranch Assessment: Charges for the Locke Ranch sewer system, which was transferred to the District in 1977. The assessment is imposed pursuant to authority in Water Code Section 31101.5 and adopted in accordance with the requirements of law. The current assessment is $66.00 per year for a residential or equivalent sewer connection and is collected on the Orange County tax roll. Net Assets: The difference between total assets and total liabilities. Increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is strengthening or weakening. Non-Capital Equipment: Hand tools, furniture and equipment costing $5,000 or less. Operating Budget: The portion of the budget that pertains to daily operations that provide basic district services. The operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, travel and fuel, and does not include purchases of major capital plant or equipment which is budgeted separately in the Capital Budget. Operating Expenses: All costs associated with the day-to-day business of the District, which are not considered capital improvements or debt repayments. Yorba Linda Water District FY 2013/14 Budget Page 187 Glossary of Terms, Continued Purchased Import Water: All imported water obtained from Metropolitan Water District of Southern California (MWD) through the Municipal Water District of Orange County (MWDOC). QualServe: A voluntary quality improvement program designed exclusively for water and wastewater agencies. Refunding Revenue Bond: A revenue bond is a long-term municipal debt instrument that is secured by a specified revenue source. A refunding revenue bond is a revenue bond that retires another bond before the first bond matures. Reserve Fund: The District maintains Reserve Funds per the District’s policy for both designated and restricted balances. Designated Reserve Funds are “general use” funds designated by the Board. Restricted Reserve Funds are those that are legally set aside for a particular purpose due to a legal or contractual commitment and cannot be used for any other purpose. Revenue: Monies that the District receives as income. It includes such items as water sales and sewer fees. Estimated revenues are those expected to be collected during the fiscal year. Supervisory Control and Data Acquisition (SCADA): The system that collects operational data from remote units to monitor and control water and wastewater systems and facilities throughout the District service area. Sewer Fund: The fund established to account for the District’s activities of wastewater collection and distribution to Orange County Sanitation District for treatment. Special District: An independent unit of local government organized to perform a single governmental function or a restricted number of related functions. Yorba Linda Water District is organized as a special district. Supplies and Services: The cost of items needed to support the accomplishment of the activities in a department’s programs. Uncollectible Accounts: Includes the write-off of unpaid water and sewer charges. User Charge: A charge levied against users of a service or purchasers of a product. Variable Water Costs: Water costs based on a set price per unit but that varies on the quantity of units bought or produced. Variable water costs for the District are related to the quantity of import water that the District purchases and the quantity of ground water pumped from the wells. Yorba Linda Water District FY 2013/14 Budget Page 188 Glossary of Terms, Continued Vehicle and Equipment Outlay: Purchases of assets, such as vehicles, equipment and furniture, which cost over $5,000 each and are depreciated over their useful life. Water Fund: The fund established to account for the District’s activities relating to the treatment and distribution of potable drinking wa ter and non-potable water to its customers. Yorba Linda Water District FY 2013/14 Budget Page 189 Financial Policies Introduction The District’s financial policy documents incorporate many of the District’s financial management practices that are used by the District staff as guidelines for operational and strategic decision-making related to current and future financial matters. The purpose of establishing these policies is to identify acceptable and unacceptable courses of action, thus establishing parameters in which the District’s fiscal performance can be reviewed. Some policies are flexible when they are utilized by District staff as performance measurement tools to monitor the District’s finances, while others are restrictive to emphasize accountability. The Operating Budget Policy and Revenues and Expenditures Policy are internal documents, acting as a guideline for staff, and are not reviewed by the Board. The Financial Reserves Policy and Investment Policy are reviewed by District staff and Board Members annually, to accommodate minor changes to the existing policy or major shifts in financial priorities as approved by the District’s Board of Directors. The District’s financial policies encompass the following functional areas:  Operating Budget Policy  Revenues and Expenditures Policy  Financial Reserves Policy  Investment Policy Yorba Linda Water District FY 2013/14 Budget Page 190 Financial Policies, Continued Operating Budget Policy The operating budget policy answers some basic questions such as: How is the budget developed? Who is involved in the budget pro cess? What does the budget include? Budget Development The District’s budget is developed in accordance with the priorities which are linked to the District’s financial and strategic plans set forth in the District’s mission and long -term goals and objectives. These are found in the District’s strategic plan, the needs of the community, and federal and state laws. Guidelines with respect to the District’s budget are as follows:  The budget should support the District’s mission statement, strategic goal s, and critical priorities  There should be no deferment of critical maintenance  The budget should be regarded as a business operating plan  The budget should balance the needs to pay for the District’s cost of providing services, debt service obligation and capital needs of the District  Expenses should be budgeted for in appropriate departments to correctly identify the cost of providing various District functions and services Budget Form The District operating and capital budget is developed on an annual basis. Operating and capital appropriations are approved by the District’s Board of Director’s. Proposed revenues and expenditures including debt service expenditures are presented to the Board of Directors along with comparisons to projected expenditure s for the current year and actual expenditures of the prior two years. Basis of Budgeting The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The budgeting for the District is kept on an accrual basis, with the exception of supplies & services, which are budgeted on a cash basis. The District is operated as an enterprise fund, which is an accounting entity that finances and accounts for the acquisition, operation a nd maintenance of governmental facilities and services. It is the District’s intention to recover the full costs of supplying goods and/or services through user-charges. Yorba Linda Water District FY 2013/14 Budget Page 191 Financial Policies, Continued The District’s budget process was developed with a series of goals and objectives in mind. These goals and objectives are communicated throughout the organization through several meetings. During the process, the Board of Directors provides priorities and guidelines to the General Manager. The General Ma nager then discusses Board priorities and other future issues and concerns with Department Heads during staff meetings. Once goals and objectives for the upcoming year are identified, the General Manager and the District staff start developing the District’s budget. Where practical, the District integrates performance measurement, service level, and productivity indicators in the District’s adopted budget document. The District will continue to emphasize the importance of meeting each department’s goals and objectives in order to accomplish its long-term goals and objectives. An increase in the Operating and Capital budget may result in water rate increases. In order to minimize the impact on the District’s rates, revenue requirements are scrutinized to achieve operating efficiencies and maintain or increase customer service at the same time. As part of the cost containment efforts, District staff re -visits operating priorities and reviews internal procedures to included utilizing outside services when they can offer greater competitive advantages to doing it internally, or investing in technology to increase productivity and to reduce the need for additional staff. Yorba Linda Water District FY 2013/14 Budget Page 192 Financial Policies, Continued Revenues and Expenditures Policies This policy is used as an aid to provide for the consistent provision of essential public services since revenues and expenditures are the key drivers of the District’s operations. The goal of this policy is to help ensure the financial stability regardless of the economic situation and to provide information to the Board that revenue and expenditure practices are consistent with the District’s mission and goals. Revenues Policy Budgeted revenues are estimated conservatively using an objective and analytical approach using certain techniques such as historical trends and current information to maintain consistency, reliability, and reasonableness. User Charges User charges are the most important component of the District’s revenue portfolio. The District uses user charges to fund the provision of services provided to its customers. The District utilizes a cost recovery component to determine how much costs need be recovered from various customers. The cost of providing various services is used as the basis for setting rates and fees to the various types of customers served. The following are guidelines for the user charge setting process:  User charges are established utilizing a generally accepted cost recovery methodology that is consistent and legally defendable usin g the following approaches: revenue requirement analysis, cost of service analysis, and rate design analysis.  Rate designs shall be reflective of the District’s Board of Directors’ rate setting objectives.  Rates shall be set at a level so that the District will collect reliable revenues through a combination of system access charges and users’ commodity rates to pay for the District’s revenue requirement.  Rates and charges will be reviewed and updated regularly based on factors such as the impact of inflation, other cost increases, the adequacy of the coverage of costs and requirements of the rate covenant. Expenditures Policy The District’s expenditures reflect the Board of Directors’ and staff commitment to serve present and future customers with reliable public services. The Board and Staff believe that prudent expenditure planning and accountability will ensure fiscal stability. Yorba Linda Water District FY 2013/14 Budget Page 193 Financial Policies, Continued Budgeted expenditures are projected conservatively using an objective and analytical approach as well as certain techniques such as historical trends, current information, and economic indicators to maintain consistency, reliability, and reasonableness. The basic components of the District’s expenditure policies are broken down into two functional areas: Maintenance of Capital Assets and Review of Service Maintenance of Capital Assets Maintaining a reliable transmission and distribution system and a sustained capital program are simply not possible without reliable funding sources. For this r eason, prudent financial planning is imperative to an effective capital improvement program. The District uses a combination of “pay as you go” method and long term funding to fund the District’s capital improvement program and maintenance of its capital assets. A fixed annual amount was projected by an Asset Management Plan and is included in the District’s Reserve Policy as an annual revenue requirement to be collected from rates and charges. The annual contributions then are accumulated and kept in th e District’s capital fund to be spent and withdrawn for the District’s betterment and replacement projects over a period of time. The following elements of expenditure policy reflect the District’s philosophy to perform ongoing maintenance of capital investments once they are purchased and capitalized:  Maintain consistency of allocation of resources for programs to carry out the District’s mission and goals to its customers  Within the resources available each fiscal year, the District shall maintain capit al assets and infrastructure at a satisfactory level to protect the District’s investment, to minimize the future replacement and maintenance costs, and to continue service levels. Review of Service These expenditure policies are used by staff to prompt review of services to see if they are being provided as effectively and efficiently as possible. The District’s review of service policy is as follows:  Utilize technology and productivity advancements that will help reduce or avoid increasing personnel costs, when practicable.  Control personnel costs as a proportion of total budget, to more productively and creatively use available resources. Yorba Linda Water District FY 2013/14 Budget Page 194 Financial Policies, Continued Financial Reserves Policy A. GENERAL POLICY: Maintaining adequate reserves is an essential part of sound financial management. The Yorba Linda Water District Board of Directors realizes the importance of reserves in providing reliable service to its customers, financing of long-term capital projects and funding availability for emergencies should the need arise. Interest derived from reserve balances shall be credited to the reserve account from which it was earned. B. CATEGORIES: YLWD shall accumulate, maintain and segregate its reserve funds into the following categories: Restricted and Designated Reserves 1. Board Designated Reserves; and 2. Contractually Restricted Reserves. C. SCOPE: This policy will assist the Board of Directors in establishing: 1. Target levels for reserve funds; 2. Requirements for the use of reserve funds; and 3. Periodic review requirements for each reserve. D. PERIODIC REVIEW: Staff and the YLWD Board shall review the reserve balances and targets annually as a part of the annual budget process. The Finance -Accounting Committee will continue to review all reserve and investment balances monthly, with a quarterly report going to the full Board. E. RESTRICTED AND DESIGNATED RESERVES: 1. Board Designated Reserves: These are reserve funds earmarked for the purpose of funding such items as new capital facilities, repair or replacement of existing facilities and general operating reserves designated for a specific purpose and use by the Board of Directors. Yorba Linda Water District FY 2013/14 Budget Page 195 Financial Policies, Continued 1.0 Operating Reserve A. Definition and Purpose – Established to cover temporary cash flow deficiencies that occur as a result of timing differences between the receipt of operating revenue and expenditure requirements and unexpected expenditures occurring as a result of doing business. B. Target Level – The Government Finance Officers Association (GFOA) recommends that funding should be no less than one to two months (or 8% - 17%) of the District’s annual operating budget. The District’s current target will be a minimum of 8% and a maximum of 17% of the annual operating budget for both the water and sewer funds. C. Events or Conditions Prompting the Use of the Operating Reserve – This reserve may be utilized as needed to pay outstanding operating expenditures prior to the receipt of anticipated operating revenues. 1.1 Emergency Reserve A. Definition and Purpose – Established to provide protection recovery to the District and its customers for losses arising from an unplanned event or circumstance. The reserve level combined with YLWD’s existing insurance policies should adequately protect YLWD and its custom ers in the event of a loss. B. Target Level – Established at a minimum level equal to $1,000,000 for the water fund and shall accumulate interest and annual contributions as determined by the District’s annual operation to a maximum level of $4,000,000. The target for sewer will be a minimum of $250,000 and a maximum of $1,000,000. C. Events or Conditions Prompting the Use of the Emergency Reserve – This reserve shall be utilized to cover unexpected losses experienced by the District as a result of a disaster or other unexpected loss. Any reimbursement received by the District from insurance companies as a result of a submitted claim shall be deposited back into the reserve as replenishment for the loss. 1.2 Capital Replacement Reserve A. Definition and Purpose – Established to provide capital repair and replacement funding as the District’s infrastructure deteriorates over its expected useful life. B. Target Level – The Board-approved 2010 Asset Management Plan recommended that the annual contribution to this reserve be at a minimum level of $1,820,000 for the water fund, less money set aside for the Maintenance Reserve and $345,000 for the sewer fund. Funding with available funds based on the District’s operations shall be allocated quarterly. Yorba Linda Water District FY 2013/14 Budget Page 196 Financial Policies, Continued C. Events or Conditions Prompting the Use of the Capital Replacement Reserve – Through the annual budget process, staff shall recommend anticipated asset replacement projects. The Board of Directors shall take action to approve recommended project appropriations from the capital replacement reserve. Should unplanned replacement be necessary during any fiscal year, the Board of Directors may take action to amend the budget and appropriate needed funds as required. 1.3 Maintenance Reserve A. Definition and Purpose – Established to provide funding for non-scheduled capital asset repair and replacement. B. Target Level – $200,000 subject to an annual review. C. Events or Conditions Prompting the Use of the Maintenance Replacement Reserve – Unplanned failure of assets including but not limited to pumps, motors and major facility repairs. 1.4 Employee Liabilities Reserve A. Definition and Purpose – The purpose is to cover employees’ accrued vacation and other compensatory time and to ensure the complete funding associated with the liability incurred for employees whom have met the requirements necessary for district paid health benefits at retirement. B. Target Level – The annual contribution will be $100,000 ($93,000 for water and $7,000 for sewer) to be evaluated and/or adjusted annually thereafter based on an analysis of current employees’ vacation and sick time accrued and actuarial determinations of future retiree costs. The amount of actuarily- determined contributions for the District’s Other Post Employment Benefit (OPEB) costs that the District has underfunded and is therefore shown as a long-term liability as of June 30, 2011 was $122,065. When combined with a liability on the District’s books for vacation, compensatory and sick time of $1,007,193 at June 30, 2011, the target is projected to be approximately $1,130,000 for the combined water and sewer enterprises. C. Events or Conditions Prompting the Use of the Employee Liabilities Reserve – This reserve may be used in the event that operating funds are not adequate to meet vacation, compensatory and sick time paid out or retiree medical cost obligations within the current year. 2. Contractually Restricted Reserves: These are funds held to satisfy limitations set by external requirements established by creditors, grant agencies or law. Examples include stipulated bond covenants and reserves held with a fiscal agent. Yorba Linda Water District FY 2013/14 Budget Page 197 Financial Policies, Continued 2.0 US Bank 2008 COP Reserve A. Definition and Purpose – Established to cover reserve requirements held with a designated fiscal agent (US Bank) for the 2008 Certificates of Participation. B. Target Level – Funding shall be held in an amount equal to $2,147,096. C. Events or Conditions Prompting the Use of the Contractually Restricted Reserve – This reserve may be utilized as needed by the fiscal agent to pay any outstanding debt service payments not covered by the District within the specified billing and due dates. Yorba Linda Water District FY 2013/14 Budget Page 198 Financial Policies, Continued Investment Policy 1.1 It is the policy of the Yorba Linda Water District (“District”) to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the inv estment of public funds. 1.2 The purpose of this policy is to provide guidelines for the prudent investment of funds of the District and to outline the policies for maximizing the efficiency of the District’s cash management. The District’s goal is to en hance the economic status of the District consistent with the prudent protection of the District’s investments. This investment policy has been prepared in conformance with all pertinent existing laws of the State of California. SECTION 2: SCOPE 2.1 This Investment Policy applies to all funds and investment activities of the District, except for the proceeds from capital project financing instruments, which are invested in accordance with provisions of their specific documents. These funds are accounted for as Enterprise Funds and are identified in the District’s Comprehensive Annual Financial Report. SECTION 3: DELEGATION OF AUTHORITY 3.1 The authority of the Board of Directors to invest funds is derived from Section 53601 of the California Government Code (“CGC”). Section 53607 of the CGC grants the Board of Directors the authority to delegate that authority, for a one - year period, to the District’s Treasurer. Therefore, management responsibility for the investment program is hereby delegated to th e District’s Treasurer, who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the Treasurer. The Treasurer shall establi sh procedures for the management of investment activities, including the activities of staff consistent with this Policy. 3.2 The Treasurer may retain the services of an outside investment advisor or manager as approved by the Board to assist with the D istrict’s investment program. Any investment advisor selected shall make all investment decisions and transactions in strict accordance with State law, and this Policy. Yorba Linda Water District FY 2013/14 Budget Page 199 Financial Policies, Continued SECTION 4: INVESTMENT OBJECTIVES 4.1 The primary objectives, in priority order, of the District’s investment activities shall be: 4.1.1 Safety: Safety and preservation of principal is the foremost objective of the investment program. Investments shall be selected in a manner that seeks to ensure the preservation of capital in the District’s overall portfolio. This will be accomplished through a program of diversification and maturity limitations, more fully described in Section 13, in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.1.2 Liquidity: The District’s investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated. Securities should mature concurrent with cash needs to meet anticipated demands. 4.1.3 Return on Investments: The District’s investment portfolio shall be designed with the objective of attaining the best yield or returns on investments, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives. SECTION 5: PRUDENCE 5.1 The standard of prudence to be used by the designated representative shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. The meaning of the standard of prudent investor is explained in CGC Section 53600.3, which states that “when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” 5.2 The Treasurer and delegated investment officers, acting in accordance with District procedures and the Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Yorba Linda Water District FY 2013/14 Budget Page 200 Financial Policies, Continued 5.3 Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. SECTION 6.0: ETHICS AND CONFLICTS OF INTEREST 6.1 Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District’s General Manager any material financial interests in financial institutions that conduct business with the District’s boundaries, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District. SECTION 7: AUTHORIZED BROKER/DEALERS 7.1 The Treasurer will maintain a list of authorized broker/dealers and financial institutions that are approved for investment purposes. Broker/dealers will be selected for credit worthiness and must be authorized to provide investment services in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15(C)3-1 (uniform net capital rule). No public deposit will be made by the broker/dealer except in a qualified public depository as established by the established state laws. Before a financial institution or broker/dealer is used, they are subject to investigation and approval by the Treasurer or his/her designated representative, and must submit the following: 7.1.1 Certification of having read and understood this investment policy resolution and agreeing to comply with the District’s investment policy; 7.1.2 Proof of Federal Investment Regulatory Authority certification; 7.1.3 Proof of State of California registration; 7.1.4 Audited financial statements for the institution’s three (3) most recent fiscal years; 7.1.5 References of other public-sector clients that similar services are provided to. Yorba Linda Water District FY 2013/14 Budget Page 201 Financial Policies, Continued 7.2 If a third party investment advisor is authorized to conduct investment transactions on the District’s behalf, the investment advisor may use their own list of approved independent broker/dealers and financial institutions. The investment advisor’s approved list must be made available to the District upon request. SECTION 8: AUTHORIZED INVESTMENTS 8.1 The District is provided a broad spectrum of eligible investments under the CGC Sections 53601 et seq. Authorized investments shall also include, in accordance with CGC section 16429.1 et seq., investments into the Local Agency Investment Fund (LAIF) and the Orange County Treasurer’s Commingled Investment Pool in accordance with CGC section 53684. Within the investments permitted by the CGC, the District seeks to further restrict eligible investment to the investments listed in Section 8.3 below. Percentage holding limits listed in this section apply at the time the security is purchased. Ratings, where shown, specify the minimum credit rating category required at purchased without regard to +/- or 1,2,3 modifiers, if any. 8.2 The purchase of any investment permitted by the CGC, but not listed as an authorized investment in this Policy is prohibited without the prior approval of the Board of Directors. Yorba Linda Water District FY 2013/14 Budget Page 202 Financial Policies, Continued 8.3 Within the context of these limitations, the following investments are authorized: TABLE 1 Permitted Investments*/ Deposits CA Government Code % of Portfolio Limits / Maturity Limits YLWD % of Portfolio Limits / Maturity Limits Bank Deposits# No % limit, 5 years No % limit, 5 years CD Placement Service# 30% limit, 5 years 30% limit, 5 years Local Agency Investment Fund (LAIF)^ No % or maturity limit No % or maturity limit County Pooled Investment Funds^ No % or maturity limit No % or maturity limit Joint Powers Authority Funds (CalTRUST & CAMP)^ No % or maturity limit No % or maturity limit U.S. Treasury Obligations No % limit, 5 years No % limit, 5 years U.S. Agency Obligations No % limit, 5 years No % limit, 5 years Negotiable Certificates of Deposit# 30% portfolio, 5 years 30% portfolio, 5 years Money Market Funds* 20%, 10% per issuer, no limit 20%, 10% per issuer, no limit Medium-Term (or Corporate) Notes* 30% portfolio, 5 years 30% portfolio, 5 years Bankers Acceptances* 40%, 30% per issuer, 180 days 10% max, 5% per issuer, 180 days Commercial Paper* 25%, 10% per issuer, 270 days 25% max, 5% per issuer, 270 days * Please see Appendix A for more detailed descriptions and additional restrictions ^ Please see Section 10 for additional restrictions # Please see Section 11 for additional restrictions Yorba Linda Water District FY 2013/14 Budget Page 203 Financial Policies, Continued SECTION 9: REVIEW OF INVESTMENT PORTFOLIO 9.1 The securities held by the District must be in compliance with Section 8 Authorized Investments at the time of purchase. The Treasurer shall at least quarterly review the portfolio to verify that all securities are in compliance with Section 8 Authorized Investments. In the event a security held by the District is subject to a credit rating change that brings it below the minimum credit ratings specified in Appendix A Authorized Investments, the Treasure r should notify the Finance-Accounting Committee - and through the Committee’s minutes, the Board - of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the change, prognosis for recovery or further rate drops, and the market price of the security. SECTION 10: INVESTMENT POOLS 10.1 A thorough investigation of any investment pool or mutual fund is required prior to investing, and on a continual basis. The investigatio n will, at a minimum, obtain the following information: 10.1.1 A description of eligible investment securities, and a written statement of investment policy and objectives; 10.1.2 A description of interest calculations and how it is distributed, and how gains and losses are treated; 10.1.3 A description of how the securities are safeguarded (included the settlement processes), and how often the securities are priced and the program audited; 10.1.4 A description of who may invest in the program, how ofte n and what size deposit and withdrawal are allowed; 10.1.5 A schedule for receiving statements and portfolio listings; 10.1.6 Are reserves, retained earnings, etc. utilized by the pool/fund; 10.1.7 A fee schedule and when and how it is assessed; 10.1.8 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds. Yorba Linda Water District FY 2013/14 Budget Page 204 Financial Policies, Continued SECTION 11: COLLATERALIZATION 11.1 Bank Deposits: Under provisions of the CGC, California banks and savings and loan associations are required to secure the District’s deposits by pledging eligible securities with a value of 110% of principal and accrued interest. State law also allows financial institutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150% of the District’s total deposits. 11.2 Waiver of Security: The Treasurer, at his/her discretion and in accordance with CGC section 53653, may waive security for the portion of any deposits as is insured pursuant to federal law. SECTION 12: SAFEKEEPING AND CUSTODY 12.1 All security transactions entered into by the District shall be conducted on a delivery-versus-payment basis. Securities will be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipt s. The only exception to the foregoing shall be depository accounts and securities purchases made with (i) local government investment pools, and (ii) money market mutual funds, since those purchased securities are not deliverable. SECTION 13: DIVERSIFICATION AND MAXIMUM MATURITIES 13.1 The District will diversify its investments by security type and institution. With the exception of U.S. Treasuries, U.S. Agency Securities, FDIC Insured Certificates of Deposit and authorized pools, no more than 30% of the District’s total investment portfolio will be invested in a single security type or with a single financial institution. 13.2 To the extent possible, the District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and approved in advance by the Board of Directors, the District will not directly invest in securities maturing more than 5 years from the date of purchase. SECTION 14: INTERNAL CONTROLS 14.1 The external auditors will annually review the investments and general activities associated with the investment program. This review will provide internal control by assuring compliance with the Investment Policy and District policies and procedures. Yorba Linda Water District FY 2013/14 Budget Page 205 Financial Policies, Continued SECTION 15: PERFORMANCE STANDARDS 15.1 The investment portfolio will be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. 15.2 The District’s investment strategy is passive. The performance of the District’s investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District’s Safety, Liquidity and Return on Investments objectives. This review will be conducted annually with the Finance-Accounting Committee. SECTION 16: REPORTING 16.1 Subject to CGC sections 53607 and 53646(b), the Treasurer will provide monthly investment reports to the District’s Finance-Accounting Committee (and through the Committee’s minutes, to the Board of Directors) and quarterly reports to the Board of Directors which provide a clear picture of the status of the current investment portfolio. The reports shall comply with the reporting requirements of CGC sections 53607 and 53646(b), respectively. SECTION 17: INVESTMENT POLICY ADOPTION 17.1 The District’s Investment Policy will be adopted by resolution of the Board of Directors. The policy will be reviewed on an annual basis and modification, if any, must be approved by the Board of Directors. ITEM NO. 11.3 AGENDA REPORT Meeting Date: May 23, 2013 Subject:Personnel-Risk Management Committee (Collett/Beverage) · Minutes of meeting held May 8, 2013 at 4:00 p.m. · Minutes of meeting held May 14, 2013 at 4:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled June 11, 2013 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 050813_PRM_-_Minutes.doc PRM Mtg Minutes 05/08/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT PERSONNEL-RISK MANAGEMENT COMMITTEE MEETING Wednesday, May 8, 2013 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 8, 2013 meeting of the Yorba Linda Water District’s Personnel-Risk Management Committee was called to order by Director Collett at 4:00 p.m. The meeting was held in the Admin Conference Room at the District’s Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. ROLL CALL COMMITTEE STAFF Director Ric Collett, Chair Steve Conklin, Acting General Manager Director Michael J. Beverage Gina Knight, HR and Risk Manager Stephen Parker, Finance Manager 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1 Approval for Full-Time Safety and Training Coordinator Position Gina Knight presented a proposal to the Personnel-Risk Management Committee for their consideration and support for the addition of a full-time Safety and Training Coordinator position to the existing list of Budgeted positions. Staff requested that the Committee consider the proposal and to support the increase of one full-time position bringing the total of District full-time employees to 77. This new position would be responsible for enhancing the District’s safety culture by implementing good sound safety practices, providing in-house mandated safety related training, performing incident investigations and administering the emergency preparedness plan. The Committee will recommend the Board of Directors consider the proposal and approve a full-time Safety and Training Coordinator position. This position will be budgeted for the full fiscal year. The Committee asked staff to present the proposal to increase the existing number of budgeted and authorized positions by one full-time position during FY 2013-2014 to the full Board of Directors for their consideration at the May 23, 2013 regular Board meeting. 2 4.2. Approval to Fill a Budgeted Meter Reader I Position Stephen Parker presented his request to fill his vacant budgeted Meter Reader I position to the Personnel-Risk Management Committee. The Committee reviewed and discussed the filling of this position and recommended to continue to budget for the position during FY 2013-2014 and to fill the position only and after the results of the Operations and Efficiency Study was reviewed by the Board of Directors and the filling of the Meter Reader I position was still warranted. 5. DISCUSSION ITEMS 5.1. Future Agenda Items and Staff Tasks Staff informed the Committee that the District’s recently hired Accounting Assistant II, Carlos Moya, had submitted his resignation effective May 22, 2013. 6. ADJOURNMENT 6.1. The meeting was adjourned at 5:15 p.m. The next Personnel-Risk Management Committee meeting is scheduled to be held Tuesday, May 14, 2013 at 4:00 p.m. ITEM NO. 11.4 AGENDA REPORT Meeting Date: May 23, 2013 Subject:Planning-Engineering-Operations Committee (Kiley/Hawkins) · Minutes of meeting held May 6, 2013 at 4:00 p.m. · Meeting scheduled June 6, 2013 at 3:00 p.m. ATTACHMENTS: Name:Description:Type: 050613_-_PEO_Minutes.docx PEO Mtg Minutes 05/06/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT PLANNING-ENGINEERING-OPERATIONS COMMITTEE MEETING Monday, May 6, 2013 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 6, 2013 meeting of the Yorba Linda Water District’s Planning- Engineering-Operations Committee was called to order by Director Kiley at 4:00 p.m. The meeting was held in the Admin Conference Room at the District’s Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. ROLL CALL COMMITTEE STAFF Director Robert R. Kiley, Chair Steve Conklin, Acting General Mgr Director Phil Hawkins John DeCriscio, Operations Mgr 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. Approval of Change Order No. 1 for the 2012 Waterline Replacement Phase II Project Mr. Conklin reported that work is proceeding on schedule on construction of the above project, and described the conditions relating to proposed Change Order No. 1. Following discussion, the Committee supported the staff recommendation that the Board approve CO No.1 in the amount of $29,764.11 and no additional days to TBU Construction. 4.2. Terms and Conditions for Water and Sewer Service with Brandywine Homes Mr. Conklin reported that Brandywine Homes is proposing to develop 51 condominium units on 5.12 acres under TTM 17548, and that the Terms and Conditions being presented are for water and sewer service for the project. Following discussion, the Committee supported the staff recommendation that the Board approve Terms and Conditions for Water and Sewer Service for Brandywine Homes. 4.3. Terms and Conditions for Water and Sewer Service with Pacific Development Group II Mr. Conklin reported that Pacific Development Group II is proposing to develop a Buy Buy Baby store at the east end of the Savi Ranch shopping center, adjacent to Kohl’s Department Store. Following discussion, the Committee supported the staff recommendation that the Board approve 2 Terms and Conditions for Water and Sewer Service for Pacific Development Group II for the subject project. 4.4. Renewal of Uniform Contract Mr. DeCriscio reported that the District has a Supplier Contract agreement with Aramark to supply uniforms, floor mats and hand towels to the District and that the agreement expires June 30, 2013. He indicated that Aramark has provided exceptional service over the one-year contract and the following three one-year renewals. At the request of District staff, Aramark provided a proposal to extend its contract one more year, with a 2% increase in the service cost element of the contract. Following discussion, the Committee supported the staff recommendation that the Board authorize a one-year addendum to the contract for FY 2013/14, at a total estimated cost of $19,000. 5. DISCUSSION ITEMS 5.1. Well #18 Engine Overhaul Mr. DeCriscio reported that per District Resolution No. 13-03, District staff must inform the Board when staff plans to proceed with necessary work performing non-scheduled capital asset repairs, which is needed for the overhaul of the gas engine powering Well No. 18. He described the work necessary, at an estimated cost of $27,000 to $30,000, and that it can be completed before the end of May, so that the well can be returned to service before the increasing water demands of summer. Following discussion, the Committee supported staff proceeding with the work. Mr. Conklin noted that this item will also be presented to the Board on May 9, 2013. 5.2. Status of Northeast Area Developments Mr. Conklin reported on the memo prepared by staff of the Esperanza Hills Development project and sent to County Planning. He noted that the memo was also being distributed among local residents. 5.3. Monthly Groundwater Production and Purchased Import Water Report Mr. Conklin reported that the report provided shows that we are on target to achieve our BPP goal of 50.3% groundwater use, with two months remaining in the current water year. Through April 2013, total water demand is 10.6% over our projection, due to the warmer and dryer year to date. 5.4. Monthly Production Summary Report Mr. DeCriscio reported water consumption, weather conditions, water quality, and equipment taken out and returned to service over the month of April 2013. He noted that we are modifying our source water operations at this time because of work by MWD at Diemer, and will be returning to normal operations in about a week. 3 5.5. Monthly Preventative Maintenance (PM) Report Mr. DeCriscio reported on the status of PM work, noting that all work elements monitored are on target at completion levels, except for sewer televising, which continues to be a challenge. 5.6. Groundwater Producers Meeting Notes Mr. DeCriscio reported the City of Santa Ana is pursuing a BEA Exemption from OCWD for construction of a wellhead treatment system on its Well 32. He noted that OCWD is reporting that MWD may be calling for extraction of its CUP water in the coming year, which would require YLWD to pump an additional 1,993 AF of groundwater in addition to our BPP, which could be a challenge. On the issue of OCWD Annexation, Mr. Conklin reported that the public-comment review period for the Annexation EIR ends on May 17, 2013, and that a meeting is scheduled of May 22, 2013 at OCWD to go over the comments received. 5.7. Status Report on Capital Projects in Progress Mr. Conklin reported on the status of capital projects currently in planning, design and construction. 5.8. Status of Strategic Plan Initiatives Mr. Conklin reported on the status of strategic plan initiatives relating to engineering and operations. 5.9. Consider Rescheduling July 4, 2013 Committee Meeting to Another Date Following discussion, the Committee rescheduled the meeting to Monday, July 8, 2013 at 4:00 pm. 5.10. Future Agenda Items and Staff Tasks None. 6. ADJOURNMENT 6.1. The meeting was adjourned at 5:08 p.m. The next Planning-Engineering- Operations Committee meeting is scheduled to be held Thursday, June 6, 2013 at 3:00 p.m. ITEM NO. 11.5 AGENDA REPORT Meeting Date: May 23, 2013 Subject:Public Affairs-Communications-Technology Committee (Beverage/Collett) · Minutes of meeting held May 7, 2013 at 4:00 p.m. · Minutes of meeting held May 22, 2013 at 3:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled June 3, 2013 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 050713_PACT_-_Minutes.docx PACT Mtg Minutes 05/07/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC AFFAIRS-COMMUNICATIONS-TECHNOLOGY COMMITTEE MEETING Tuesday, May 7, 2013 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 7, 2013 meeting of the Yorba Linda Water District’s Public Affairs- Communications-Technology Committee was called to order by Director Beverage at 4:00 p.m. The meeting was held in the Admin Conference Room at the District’s Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. ROLL CALL COMMITTEE STAFF Director Michael J. Beverage, Chair Steve Conklin, Acting General Mgr Director Ric Collett Art Vega, Acting IT Manager Damon Micalizzi, Public Info Officer 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. Draft 2013 Water Quality Report The Committee reviewed and approved the 2013 Water Quality Report. 4.2. Implementation of a Consolidated Storage and Backup Solution The Committee reviewed and approved the Implementation of a consolidated storage and backup solution. 5. DISCUSSION ITEMS 5.1. Status of Dynamics GP Consultant The Committee reviewed the included report from Mr. Zeiler from NeuLogics. The Committee inquired about the budgeted amount for this project. Mr. Vega replied and verified that it was $15,000. 5.2. YLWD.com Review and Analytics Report (To be provided at the meeting.) The Committee reviewed the report noting that site traffic has been very consistent with spikes in visits on Mondays. A more detailed report will be presented at the May 22, 2013 PACT Committee Meeting. 2 5.3. Ideas for Summer Newsletter Content (Verbal Report) The Committee discussed ideas for content for the upcoming summer newsletter. Draft story content will be presented at the May 22, 2013 meeting. 5.4. Educational Kiosk for Lobby in Administration Building (Verbal Report) The Committee moved to the Training Room where Mr. Vega and Mrs. Nguyen presented the draft proposal for an educational interactive display for the District’s lobby. The Committee approved the initial design, making minor suggestions for color and options for limiting detail. 5.5. Status of Public Outreach Activities The Committee returned to the Admin Conference Room and reviewed the report on public outreach activities, noting that bottled water requests are up by nearly a third for FY 2012/13. 5.6. Status of Strategic Plan Initiatives The Committee reviewed the report and Mr. Micalizzi informed the Committee that he was presently working on drafting a District Crisis Communications Plan. 5.7. Future Agenda Items and Staff Tasks None. 5. ADJOURNMENT 5.1. The meeting was adjourned at 5:35 p.m. The next Public Affairs- Communications-Technology Committee meeting is scheduled to be held Wednesday, May 22, 2013 at 4:00 p.m. ITEM NO. 11.7 AGENDA REPORT Meeting Date: May 23, 2013 Subject:YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) · Minutes of meeting held April 17, 2013 at 6:00 p.m. · Meeting scheduled June 19, 2013 at 6:00 p.m. ATTACHMENTS: Name:Description:Type: Agenda_Water_District_CC_Mins.docx YLWD/City of YL Mtg Minutes 04/17/13 Minutes YLWD/CC Board Minutes April 17, 2013 YORBA LINDA WATER BOARD/ CITY COUNCIL ADVISORY COMMITTEE MINUTES April 17, 2013 6:00 p.m. CALL TO ORDER The Yorba Linda Water Board/City Council Advisory Committee convened at 6:19 p.m. in the Council Chambers at 4845 Casa Loma Avenue, Yorba Linda. ROLL CALL Committee Members City Council: John Anderson, Gene Hernandez Water District: Robert Kiley, Michael Beverage Staff Members: City: Marcia Brown, Dave Christian, Steve Harris, Steve Rudometkin, Mark Stowell Water District: Steve Conklin PLEDGE OF ALLEGIANCE City Manager Steve Rudometkin Acting General Manager Steve Conklin and City Manager Rudometkin summarized the establishment of the Committee and its goals, and introduced staff members from each agency. City Manager Rudometkin asked if there was a need to appoint a Chairman to run the meeting. After a short discussion, it was agreed to have the City Manager and Acting General Manager take turns leading the meetings. YLWD/CC Board Agenda April 17, 2013 Page 2 of 4 NEW BUSINESS 1. LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT City Manager Rudometkin said the Landscape Maintenance Assessment District (LMAD) was running on a deficit of close to $800,000 a year. He mentioned the City is forming a Landscape Maintenance Citizen Advisory Committee for citizen input in the problem solving effort including developing strategies to make the LMAD self sufficient. Mr. Rudometkin said the City would welcome the participation or assistance of the Yorba Linda Water District (YLWD). Committee member Mike Beverage suggested a liaison to the City’s Landscape Maintenance Citizen Advisory Committee instead of a having a Water District board member to serve on the Committee. The Committee members and staff discussed the high price of water and using alternative methods like greywater for landscaping, artificial turf and drought tolerant plants to assist with rising costs. Acting General Manager Conklin provided copies of a recent Municipal Water District of Orange County (MWDOC) presentation and information on water use efficiency programs. He said that MWDOC would be happy to meet with staff and discuss water saving measures. 2. CIELO VISTA/ESPERANZA HILLS DEVELOPMENTS Community Development Director Steve Harris provided a summary of the two residential developments known as the Cielo Vista and Esperanza Hills projects. He said that both projects are within the City’s General Plan and sphere of influence but are in unincorporated County land. He said that City staff has had meetings with both developers and attended scoping meetings orchestrated by the County. Mr. Harris stated that among the City’s concerns was the developers’ general insensitiveness to the hillsides, the mass landform grading, 300 - 400 lots accessing local residential streets and the County’s Initial Study for the Notice of Preparation which discounted fire hazards. Acting General Manager Conklin provided copies of the recent Water District NE Area Planning Study that was commissioned in response to these developments as well as the need for other improvements in that area. He said the study identified the reservoir criteria, booster stations and the locations of reservoirs. Councilmember Hernandez asked about a report or community briefing on the 2008 Freeway Complex Fire given that the five year anniversary was approaching. YLWD/CC Board Agenda April 17, 2013 Page 2 of 4 Acting General Manager Conklin affirmed that a report would be in the works. A brief discussion ensued relative to reservoirs, infrastructure improvements, the sewer system, densities and future annexation concerns. Mark Schock, resident, encouraged the City and Water District to request that the Orange County Fire Authority invoke the provisions of Appendix B of the California Fire Code and mandate higher fire flow requirements for any new developments in the wild land interface areas. City Manager Rudometkin suggested leaving this item on future Agendas. 3. SALE OR LEASE OF 4622 PLUMOSA DRIVE ROPERTY City Manager Rudometkin stated that the sale of the Plumosa Drive property was briefly discussed during Closed Session at the last City Council meeting. He said that National Community Renaissance (National Core), had indicated an interest in purchasing the property. City Manager Rudometkin and Acting General Manager Conklin agreed to work together on facilitating the sale and purchase process. 4. ESTABLISHMENT OF FUTURE MEETING DATES A Committee discussion ensued regarding whether the committee should meet monthly or quarterly. There was Committee consensus to meet on Wednesday June 19, 2013 at 6:00 p.m. at the Yorba Linda Water District offices, and quarterly thereafter on the 3rd Wednesday of the month at 6:00 p.m. MATTERS PRESENTED BY ADVISORY COMMITTEE MEMBERS Acting General Manager Conklin commented that there had been some vandalism at a couple of their facilities. He said they were working on getting that situation under control. POTENTIAL FUTURE AGENDA ITEMS JOINT USE OF WATER DISTRICT FACILITIES FOR RECREATIONAL PURPOSES PROJECT COORDINATION There was Committee consensus to bring these and the other above items, back at the next meeting. YLWD/CC Board Agenda April 17, 2013 Page 2 of 4 PUBLIC COMMENTS David Ramocinski, resident, said that he appreciated the two agencies coming together to form this Committee. He also spoke briefly on the Freeway Complex Fire in which he lost his home. Mark Schock, resident, thanked the Committee for their cooperative spirit and level of collaboration. ADJOURNMENT City Manager Rudometkin adjourned the Yorba Linda Water Board/City Council Advisory Committee Joint Meeting at 8:10 p.m. to June 19, 2013 at 6:00 p.m. at the Yorba Linda Water District offices. ITEM NO. 13.1 AGENDA REPORT Meeting Date: May 23, 2013 Subject:Meetings from May 24, 2013 - June 30, 2013 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Event Date Attendance by: May 2013 District Offices ClosedMon, May 27 Joint Committee Meeting with MWDOC and OCWDTue, May 28Beverage/Melton Yorba Linda Planning CommissionWed, May 29Hawkins ISDOCThu, May 30Collett Finance-Accounting Committee MeetingFri, May 31Hawkins/Melton June 2013 Pub Affairs-Communications-Tech Committee MeetingMon, Jun 3Beverage/Collett Yorba Linda City CouncilTue, Jun 4Kiley MWDOC/MWD WorkshopWed, Jun 5Melton OCWD BoardWed, Jun 5Kiley Planning-Engineering-Operations Committee MeetingThu, Jun 6Kiley/Hawkins WACOFri, Jun 7Hawkins/Kiley Personnel-Risk Management Committee MeetingTue, Jun 11Collett/Beverage Yorba Linda Planning CommissionWed, Jun 12Melton Board of Directors Regular MeetingThu, Jun 13 Joint Committee Meeting with City of PlacentiaMon, Jun 17Melton/Hawkins Exec-Admin-Organizational Committee MeetingTue, Jun 18Melton/Kiley Yorba Linda City CouncilTue, Jun 18Collett LAFCOWed, Jun 19Beverage MWDOC BoardWed, Jun 19Melton OCWD BoardWed, Jun 19Kiley Joint Committee Meeting with City of Yorba LindaWed, Jun 19Kiley/Beverage Board of Directors Workshop MeetingThu, Jun 20 Citizens Advisory Committee MeetingMon, Jun 24Beverage Finance-Accounting Committee MeetingMon, Jun 24Hawkins/Melton Personnel-Risk Management Committee MeetingTue, Jun 25Collett/Beverage Yorba Linda Planning CommissionWed, Jun 26Hawkins Board of Directors Regular MeetingThu, Jun 27 Employee PicnicSat, Jun 29 12:00PM 4:00PM 7:00PM 8:30AM 11:00AM 8:30AM 8:30AM 5:30PM 6:00PM 8:00AM 8:30AM 4:00PM 7:00PM 8:30AM 9:30AM 4:00PM 6:30PM 4:00PM 6:30PM 8:30AM 5:30PM 3:00PM 7:30AM 4:00PM 7:00PM 11:30AM 8:30AM Board of Directors Activity Calendar Time 7:00AM 5/16/2013 1:39:26 PM