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Home My WebLink About2013-06-13 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, June 13, 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. COMMITTEE REPORTS 6.1. Citizens Advisory Committee (Beverage) · Minutes of meeting held May 20, 2013 at 8:30 a.m. · Meeting scheduled June 24, 2013 at 8:30 a.m. 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 23, 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 $1,542,058.02. 7.3. Progress Payment No. 2 for the Yorba Linda Blvd Pump Station Project Recommendation: That the Board of Directors approve Progress Payment No. 2 in the net amount of $128,380.30 to ECI, Inc. for construction of the Yorba Linda Blvd. Pump Station Project, Job No. 2008-17B. 7.4. Progress Payment No. 4 for the 2012 Waterline Replacement Project, Phase II Recommendation: That the Board of Directors approve Progress Payment No. 4 in the net amount of $296,514.20 to TBU, Inc. for construction of the 2012 Waterline Replacement Project, Phase II, Job No. 2011-20. 7.5. Declaration of Restrictive Covenants with Stanley and Faye Schneider Recommendation: That the Board of Directors authorize the President and Secretary to execute the Declaration of Restrictive Covenants with Stanley and Faye Schneider. 7.6. Agreement with Yorba Linda Country Club Recommendation: That the Board of Directors authorize approval and execution of the "Agreement for Construction of Improvements and Granting of Easements," between Yorba Linda Country Club and Yorba Linda Water District. 7.7. First Amendment to OCTA Settlement Agreement Recommendation: That the Board of Directors approve execution of the First Amendment to Settlement Agreement and Mutual Release between OCTA and YLWD for the Lakeview Grade Separation Project. 7.8. Unaudited Financial Statements for the Period Ending March 31, 2013 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending March 31, 2013. 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. Financial Reserves Policy for FY 2013/14 Recommendation: That the Board of Directors approve Resolution No. 13-07 Adopting the Financial Reserves Policy for Fiscal Year 2013/14. 8.2. Appropriations Limit for FY 2013/14 Recommendation: That the Board of Directors approve Resolution No. 13-08 Adopting the Appropriations Limit for Fiscal Year 2013/14. 8.3. Proposed Budgeted Positions for Fiscal Year 2013/14 Recommendation: That the Board of Directors approve Resolution No. 13-09 Approving the Budgeted Positions for Fiscal Year 2013/14 and Rescinding Resolution No. 12-27. 8.4. Proposed Budget for FY 2013/14 Recommendation: That the Board of Directors approve Resolution No. 13-10 Adopting the Budget for Fiscal Year 2013/14 and Rescinding Resolution No. 12-14. 8.5. Fats, Oils and Grease (FOG) Discharge Permit Fees Recommendation: That the Board of Directors approve Resolution No. 13-11, Adopting Fats, Oils and Grease Fees. 8.6. MWDOC SmartTimer Agreement for FY 2013/15 Recommendation: That the Board of Directors authorize the Acting General Manager to execute the renewal of MWDOC's SmartTimer Rebate Agreement for FY 2013/15. 8.7. Request for Review of ISDOC Bylaw Amendments Recommendation: That the Board review and consider the Proposed Amendments to the ISDOC Bylaws. 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. CA Department of Water Resources Bay Delta Conservation Plan Video Presentation 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report 10.2. Directors' Report 10.3. Acting General Manager's Report 10.4. General Counsel's Report 10.5. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS CONTINUED 11.1. Executive-Administrative-Organizational Committee (Melton/Kiley) · Minutes of meeting held May 21, 2013 at 4:00 p.m. · Meeting scheduled June 25, 2013 at 12:00 p.m. 11.2. Finance-Accounting Committee (Hawkins/Melton) · Minutes of meeting held May 31, 2013 at 8:30 a.m. · Meeting scheduled June 28, 2013 at 8:00 a.m. 11.3. Personnel-Risk Management Committee (Collett/Beverage) · Minutes of meeting held May 14, 2013 at 4:00 p.m. · Minutes of meeting held June 11, 2013 at 4:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled July 9, 2013 at 4:00 p.m. 11.4. Planning-Engineering-Operations Committee (Kiley/Hawkins) · Minutes of meeting held June 6, 2013 at 3:00 p.m. · Meeting scheduled July 8, 2013 at 4:00 p.m. 11.5. Public Affairs-Communications-Technology Committee (Beverage/Collett) · Minutes of meeting held May 22, 2013 at 3:00 p.m. · Minutes of meeting held June 3, 2013 at 4:00 p.m. · Meeting scheduled July 1, 2013 at 4:00 p.m. 11.6. Organizational and Efficiency Study Ad Hoc Committee (Beverage/Hawkins) · Meeting held June 5, 2013 at 3:00 p.m. · Meeting scheduled June 18, 2013 at 2:00 p.m. 11.7. YLWD-City of Placentia Joint Agency Committee (Melton/Hawkins) · Meeting scheduled June 17, 2013 at 9:30 a.m. 11.8. YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) · Meeting scheduled June 19, 2013 at 6:00 p.m. 11.9. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Melton) · Minutes of meeting held May 28, 2013 at 4:00 p.m. · Meeting scheduled July 23, 2013 at 4:00 p.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. YL City Council/Planning Commission - May 28, 2013 (Kiley) 12.2. YL Planning Commission - May 29, 2013 (Hawkins) 12.3. ISDOC - May 30, 2013 (Hawkins/Kiley) 12.4. YL City Council - June 4, 2013 (Kiley) 12.5. MWDOC/MWD Workshop - June 5, 2013 (Melton/Staff) 12.6. OCWD Board - June 5, 2013 (Kiley) 12.7. WACO - June 7, 2013 (Hawkins/Kiley) 12.8. YL Planning Commission - June 12, 2013 (Melton) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from June 14, 2013 - July 31, 2013 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS This section of the agenda is for the Board of Directors to authorize Director attendance at the listed events. 14.1. Interview Sessions with Koff & Associates for Organizational & Efficiency Study - June 4-5 & 10, 2013 (Ratify Director attendance.) OCWD 80th Anniversary Reception - June 21, 2013 UWI Annual Conference - August 14-16, 2013 Recommendation: That the Board of Directors authorize Director attendance at these events if desired. 15. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 15.1. Conference with Legal Counsel – Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: ACWA/JPIA, et al. vs. Insurance Company of the State of Pennsylvania, et al. (OC Superior Court - 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 15.3. 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 written communications from potential plaintiffs threatening litigation. Number of Potential Cases: One 16. ADJOURNMENT 16.1. A Board of Directors Workshop Meeting to conduct a tour of District facilities has been scheduled for Thursday, June 20, 2013 at 8:00 a.m. The next Regular Board of Directors Meeting will be held Thursday, June 27, 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. 6.1 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Citizens Advisory Committee (Beverage) · Minutes of meeting held May 20, 2013 at 8:30 a.m. · Meeting scheduled June 24, 2013 at 8:30 a.m. ATTACHMENTS: Name:Description:Type: 052013_-_CAC_Minutes.docx CAC Mtg Minutes 05/20/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT CITIZENS ADVISORY COMMITTEE MEETING Monday, May 20, 2013 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 20, 2013 meeting of the Yorba Linda Water District’s Citizens Advisory Committee was called to order by Chair Daniel Mole at 8:30 a.m. The meeting was held in the Training Room at the District’s Administration Building located at 1717 East Miraloma Avenue, Placentia, California 92870. 2. ROLL CALL COMMITTEE MEMBERS PRESENT Daniel Mole, Chair Bill Guse Fred Hebein Cheryl Spencer-Borden Lindon Baker Joe Holdren Modesto Llanos YLWD DIRECTORS PRESENT YLWD STAFF PRESENT Michael J. Beverage, Director Steve Conklin, Acting General Manager Stephen Parker, Finance Manager Damon Micalizzi, Public Information Officer OTHER VISITORS Mark Shock 3. PUBLIC COMMENTS None. 4. PRESENTATIONS 4.1. Draft Budget for FYs 2013/14 – 2016/17 Mr. Parker presented to the Committee a report on the Draft Proposed Budget for FYs 2013/14 – 2016/17. The Committee discussed at length the budget and many of the determining factors including depreciation, water sales, capital improvement projects, water supply and District staffing levels. The proposed Budget will be taken to the Board of Directors for consideration in June. 5. DISCUSSION ITEMS 5.1. 2013 Water Quality Report The Committee received the Draft 2013 Water Quality Report for review. Mr. Conklin informed the Committee that as a result of new laws the report 2 can now be sent electronically, though customers can still obtain a hard copy upon request. 5.2. OC Water Summit Recap This item was tabled until the June meeting due to time. 5.3. Committee Structure and Bylaws This item was tabled until the June meeting due to time. 5.4. Future Agenda Items OCTA Lakeview Grade Separation Project District Organizational & Efficiency Study 6. ADJOURNMENT 6.1. The meeting was adjourned at 10:30 a.m. The next Citizens Advisory Committee meeting is scheduled to be held Monday, June 24, 2013 at 8:30 a.m. ITEM NO. 7.1 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Minutes of the Board of Directors Regular Meeting held May 23, 2013 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 052313_BOD_-_Minutes.doc BOD Mtg Minutes 05/23/13 Minutes Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 MB/RC 5-0 1 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 23, 2013, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 23, 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 Gina Knight, HR/Risk Manager Ric Collett Stephen Parker, Finance Manager Phil Hawkins Art Vega, Acting IT Manager Annie Alexander, Executive Secretary Cindy Botts, Management Analyst Jorge Lopez, Maint Distribution Operator II Ken Mendum, Water Maintenance Superintendent Cody Nottingham, Maint Distribution Operator II Damon Micalizzi, Public Information Officer ALSO PRESENT Gene Hernandez, Councilmember, City of Yorba Linda 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. PUBLIC COMMENTS None. 6. SPECIAL RECOGNITION 6.1. Recognition of Employees for Their Service to the District Jorge Lopez, Maintenance Distribution Operator II (5 Years) Mr. Mendum provided an overview of Mr. Lopez’s work history and the various certifications he has worked to obtain. 2 Cody Nottingham, Maintenance Distribution Operator II (5 Years) Mr. Mendum provided an overview of Mr. Nottingham’s work history and the various certifications he has worked to obtain. The Board and audience applauded Messrs. Lopez and Nottingham for their service. Mr. Conklin presented each of them with a pin commemorating the number of years they had served the District. Messrs. Mendum, Lopez and Nottingham left the meeting at this time. 7. CONSENT CALENDAR Director Kiley made a motion, seconded by Director Collett, to approve the Consent Calendar. Motion carried 5-0. 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. 3 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 8.1. Hidden Hills Rd Pipeline Emergency Repair Work Mr. Conklin explained that back in February, a leak had been detected in a 12-inch pipeline on West side Hidden Hills Road. Staff attempted to repair it but were unable to as there some difficulties in isolating nearby valves. Staff then performed a temporary repair on the line and solicited informal bids from various contractors to complete a permanent repair as well as install new isolation valves. The firm selected was TBU, Inc. who is currently performing some work for the District on another project. The total estimated cost for the work is $42,000. Director Hawkins made a motion, seconded by Director Kiley, to 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. Motion carried 5-0. 8.2. 2013 Public Heath Goals Report Mr. Conklin explained that the District was required by law to prepare this report every 3 years identifying specific water quality measurements that exceeded Public Health Goals (PHG) or Maximum Contaminant Level Goals (MCLG) set by the State. These goals are not enforceable standards and no action is required to meet them. Only 5 water constituents were detected that exceeded PHGs and MCLGs. The Board is required to accept the PHG report following a noticed public review period and a public hearing which has been scheduled for the regular Board meeting on June 27, 2013. Director Beverage remarked that the 5 constituents included in this report were all naturally occurring. Director Beverage made a motion, seconded by Director Collett, to approve the 2013 Public Health Goals Report; authorize staff to Notice the Public of its available 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. Motion carried 5-0. 4 8.3. Approval for Full-Time Safety and Training Coordinator Position Mr. Conklin explained that the Board previously discussed this matter at a workshop meeting held April 18, 2013. At that meeting, staff was instructed to return to the Board with additional information regarding the costs and benefits of filling this position. Since 2006, ACWA/JPIA has strongly recommended a fulltime safety position at the District due to its size and the complexity of the work performed by staff. To date this position has not been added and safety related duties are being managed by current staff with the assistance of a consultant from Aspen Risk Management Group. The consultant is currently in the office 2 days a month and is working on developing safety related policies and procedures. The proposed budget for FY 2013/14 currently includes funding for the consultant for the first 6 months of the year and funding for a full-time safety coordinator for the remainder of the year. The combined estimated cost for these two positions for the full year is $105K. When this information was presented to the Personnel-Risk Management Committee, the Directors noted that the District could have a full-time safety coordinator on staff for the entire 12 months for an additional $25K. Mrs. Knight explained that she felt that having a full-time safety coordinator would be highly beneficial for the District and its constituents. She then responded to questions from the Board concerning the degree and certifications that would be required for the position as well the assigned duties and responsibilities. Further discussion followed regarding the possibility of using the funding to train District personnel in lieu of hiring a full-time safety coordinator, how similar Districts in the region were addressing this issue, and how filling this position would help offset the safety related workload being handled by Mrs. Knight and other staff. Director Collett made a motion, seconded by Director Beverage, to approve a full-time Safety and Training Coordinator position for FY 2013/14. Motion carried 4-1 with Director Hawkins voting No. 9. DISCUSSION ITEMS 9.1. Proposed Budget for FY 2013/14 Mr. Conklin thanked the Board and staff for their work in developing the budget document. He explained that the budget identified $39.8M in total outlays (including $27.8M for expenses, $6.9M for depreciation and $5.1M for capital projects) for the upcoming fiscal year. Offsetting the $27.8M in expenses is $31.8M in anticipated revenue, resulting in a gain of $4M. The anticipated revenue includes the pass-through increases and the increase in the monthly meter charge. The Board continues to remain consistent in its decision not to fully fund deprecation which is reflected in the draft budget. The District will be operating with a planned net deficit of $2.9M despite the budget gains. On a cash basis, the operating budget will fully fund the District’s reserves policy recommendations. 5 Mr. Conklin and Mr. Parker then responded to questions from the Board regarding the pass-through increase and the increase in the monthly meter charge. Mr. Parker then clarified that the draft budget figures would be adjusted slightly to incorporate the action just taken by the Board to approve the full-time safety coordinator position for the next fiscal year. In addition, staff identified a $41K error in the anticipated revenue. These two modifications will result in a $66K difference in the final draft. Director Beverage then relayed comments provided by members of the Citizens Advisory Committee during their last meeting related to the budget. He also requested that staff notify the Board when unused funds (such as those that have been budgeted for salaries) become available prior to being transferred into reserves. Mr. Parker responded that staff would be happy to provide such a report to the Board on an annual basis. He further explained that staff was working on a draft policy that will address this matter. Mr. Conklin stated that the final draft of the budget would be presented to the Board for consideration at the regular meeting on June 13, 2013. Director Collett asked if the Board wanted to consider holding this meeting in the evening to accommodate public attendance. Following brief discussion, the Board determined to hold this meeting at its regular time of 8:30 a.m. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President’s Report President Melton stated that he would like to form an ad hoc committee to deal with matters related to the Organizational & Efficiency Study. Directors Beverage and Hawkins were then assigned to serve on the committee. 10.2. Directors’ Report OC Water Summit – May 17, 2013 (Collett/Kiley/Melton) Directors Collet, Kiley and Melton reported on their attendance at this event during which the management of the Colorado River and the repair and maintenance of California’s water infrastructure were discussed. City of Placentia Business Expo – May 18, 2013 (Kiley) Director Kiley reported that this event was well attended and people came from a variety of different places throughout the county. 10.3. Acting General Manager’s Report Mr. Conklin reported on the District’s participation in the City of Placentia Business Expo and the OC Water Summit. He further stated that staff was preparing for a series of meetings with Koff & Associates for the 6 Organizational & Efficiency Study scheduled June 4-5, 2013. An all-hands meeting will be held the morning of June 5, 2013 at which staff will receive a questionnaire regarding their assigned duties. Construction on Richfield Road is continuing to go well and 14 comment letters were submitted in response to the EIR for the District’s annexation request to OCWD. Mr. Conklin and Mr. Kidman then briefly responded to questions from the Board in regards to the comment letters and the concerns raised regarding the potential economic impact on other water agencies. Mr. Conklin then concluded his report and reminded the Board of the facilities tour scheduled June 20, 2013 and mentioned that the 60-day response period for agencies to formally express an interest in leasing or buying the Plumosa property would end May 28, 2013. 10.4. General Counsel’s Report Mr. Kidman stated that a Closed Session would be necessary. 10.5. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Executive-Administrative-Organizational Committee (Melton/Kiley) Minutes of the meeting held May 21, 2013 at 4:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held June 18, 2013 at 4:00 p.m. 11.2. Finance-Accounting Committee (Hawkins/Melton) Next meeting is scheduled to be held May 31, 2013 at 8:30 a.m. 11.3. Personnel-Risk Management Committee (Collett/Beverage) Minutes of the meeting held May 8, 2013 at 4:00 p.m. were provided in the agenda packet. Minutes of the meeting held May 14, 2013 at 4:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held June 11, 2013 at 4:00 p.m. 11.4. Planning-Engineering-Operations Committee (Kiley/Hawkins) Minutes of the meeting held May 6, 2013 at 4:00 p.m. were provided in the agenda packet. 7 Next meeting is scheduled to be held June 6, 2013 at 3:00 p.m. 11.5. Public Affairs-Communications-Technology Committee (Beverage/Collett) Minutes of the meeting held May 7, 2013 at 4:00 p.m. were provided in the agenda packet. Minutes of the meeting held May 22, 2013 at 3:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held June 3, 2013 at 3:00 p.m. 11.6. YLWD-City of Placentia Joint Agency Committee (Melton/Hawkins) Next meeting is scheduled to be held June 17, 2013 at 9:30 a.m. 11.7. YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) Minutes of the meeting held April 17, 2013 at 6:00 p.m. were provided in the agenda packet. Next meeting is scheduled to be held June 19, 2013 at 6:00 p.m. 11.8. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Melton) Next meeting is scheduled to be held May 28, 2013 at 4:00 p.m. 11.9. Citizens Advisory Committee (Beverage) Minutes of the meeting held May 20, 2013 at 8:30 a.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held June 24, 2013 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. MWDOC Board – May 15 2013 (Melton/Staff) Director Melton was unable to attend this meeting due to a schedule conflict. 12.2. YL Planning Commission – May 15, 2013 (Melton) Director Melton attended and reported that the permits for the new Fresh Market and 24-Hour Fitness had been approved during the meeting. 8 12.3. OCWD Board – May 22, 2013 (Kiley) Director Kiley attended but did not have any District related business to report. 12.4. YL City Council – May 21, 2013 (Collett) Director Collett attended and reported that it was a very dynamic meeting which included a presentation by OC LAFCO regarding the stakeholder process for the Cielo Vista/Esperanza Hills developments. 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 24, 2013 – June 30, 2013 The Board reviewed the activity calendar. Director Collett stated that he would not be able to attend the ISDOC quarterly meeting scheduled May 30, 2013. Directors Hawkins and Kiley expressed an interest in attending this meeting. 14. CLOSED SESSION The meeting was adjourned to Closed Session at 10:08 a.m. All Directors were present. Also present were Mrs. Knight and Messrs. Conklin and Kidman. 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 (OCSC – 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 The Board reconvened in Open Session at 10:28 a.m. President Melton announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 15. ADJOURNMENT 15.1. The meeting was adjourned at 10:28 a.m. The next Regular Board of Directors Meeting will be held Thursday, June 13, 2013 at 8:30 a.m. Steve Conklin Board Secretary ITEM NO. 7.2 AGENDA REPORT Meeting Date: June 13, 2013 Budgeted:Yes To:Board of Directors Cost Estimate:$1,542,058.02 Funding Source:All Funds From:Steve Conklin, Acting General Manager Presented By:Stephen Parker, Finance Manager Dept:Finance Prepared By:Charmaine Holland, Acting Accounting Asst 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 $1,542,058.02. DISCUSSION: The wire and major item on this disbursement list are as follows: A wire of $659,826.84 to MWDOC for April water purchase; a check of $121,961.29 to Environmental Construction Inc for May 2013 Y.L. Blvd Booster Station Project progress payment; and, a check of $296,666.89 to TBU Inc. for 2010 Water Line Project May progress payment. The balance of $254,639.05 is routine invoices. The Accounts Payable check register total is $1,333,094.07; Payroll No.11 total is $208,963.95; and, the disbursements of this agenda report are $1,542,058.02. 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: CK_REG_61313_BOD.pdf Check Register Backup Material 13-CS_613.doc Cap Sheet Backup Material CC_Summary_61313.xls Credit Card Summary Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 MB/RC 5-0 RC abstained from voting on payment made to Placentia Disposal on the Credit Card Summary as he has a financial interest with the vendor. . June 13, 2013 CHECK NUMBERS: Computer Checks 61330—61418 $ 673,267.23 WIRES: W-61313 MWDOC $ 659,826.84 TOTAL OF CHECKS AND WIRES $ 1,333,094.07 PAYROLL NO. 11: Direct Deposits $ 153,674.55 Third Party Checks 5584—5596 $ 14,185.76 Payroll Taxes $ 41,103.64 TOTAL OF PAYROLL $ 208,963.95 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $ 1,542,058.02 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF JUNE 13, 2013 ==================================================================. Date Vendor Name Amount Description 04/24/13 Grainger 393.18 Replacement Gas sensor 04/30/13 Staples 161.77 Magnetic Dry Erase Board 04/30/13 AWWA 98.00 Membership & Renewal 05/06/13 National Seminar 1,076.00 Seminar Training Membership 05/10/13 Orchard Supply 7.54 Lumber for concrete 05/11/13 Mandalay Bay 726.71 Lodging for Interop Conference 05/13/13 Online Information 409.60 Utility exchange report 05/13/13 Orchard 60.89 Parts / Broom/ Flare Nut 05/14/13 Harrington 605.89 Emergency Equipment 05/14/13 Westside 337.46 Saw Blades & Locks 05/14/13 Anaheim Public Works 464.00 Blanket Permit 05/14/13 Harrington 752.74 Repair Parts 05/14/13 Light Bulbs,Etc 171.20 Light Bulbs for Building 05/14/13 Cleanitsupply 445.69 Bathroom Supplies 05/15/13 Verizon 2,012.86 IT Telephone Service 05/15/13 Knowlwood 26.85 Interview Panel Lunch & Dinner 05/20/13 Placentia Disposal 480.66 Basic Svc 4/1 - 4/30/13 05/20/13 Midnightbox.com 29.88 Duracell AA Batteries 05/20/13 Amazon 22.17 AAA Batteries 05/21/13 Orchard Supply 29.37 Value Parts / Cleaning Supplies 05/22/13 Certified 1,007.14 3 Dz Brush Top Cal Card Credit Card U S Bank 04/24/2013-05/23/2013 05/22/13 Certified 1,007.14 3 Dz Brush Top 05/22/13 Westside 311.04 Concrete & Metal Cutting Blades 05/22/13 MWAVE 179.35 Seagate Hard Drive 05/22/13 Orange Tree Deli 252.18 HR Qtr Group Lunch mtg for 16 people 05/23/13 ISDOC 34.00 Quarterly MTG Registration 05/23/13 Close out Connection 568.01 Sensor Radio Meter Transceiver TOTAL10,664.18 ITEM NO. 7.3 AGENDA REPORT Meeting Date: June 13, 2013 Budgeted:Yes Total Budget:$2.6M To:Board of Directors Cost Estimate:$2.3M Funding Source:All Water Funds From:Steve Conklin, Acting General Manager Account No:101-2700 Job No:200817B Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:No Prepared By:Joe Polimino, Project Engineer CEQA Compliance:MND Subject:Progress Payment No. 2 for the Yorba Linda Blvd Pump Station Project SUMMARY: Work is continuing on the construction of the Yorba Linda Blvd Pump Station Project. The project consists of three electric motor driven vertical turbine pumps, flow control valves, a motor control center, various yard piping and a new masonry block building. STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 2 in the net amount of $128,380.30 to ECI, Inc. for construction of the Yorba Linda Blvd. Pump Station Project, Job No. 2008-17B. DISCUSSION: In accordance with the contract documents, ECI Inc. submitted a request for Progress Payment No. 2, in the amount of $128,380.30 for completed work through May 31, 2013. During this period, the contractor completed the excavation for the pump cans, set them in place and encased them in concrete. They continue to excavate and install rebar reinforcing for the building footings, retaining wall, meter vault and sump drain. The status of the construction contract with ECI Inc. is as follows: The current contract is $1,581,179.00 and 365 calendar days starting April 1, 2013. If approved, Progress Payment No. 2 is $128,380.30 (8.1% of the total contract amount), less 5% retention of $6,419.01 for a net payment of $121,961.29. If approved, total payments to date including retention will be $212,798.30 (13.5% of the total contract amount). As of May 31, 2013, 61 calendar days were used (16.7% of the contract time). Staff reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 2 is attached for your reference. PRIOR RELEVANT BOARD ACTION(S): On December 20, 2012, the Board of Directors authorized the President and Secretary to execute a construction agreement between Environmental Construction, Inc. (ECI), and the Yorba Linda Water District for the Construction of the Yorba Linda Blvd Pump Station Project in the amount of $1,581,179.00. The Board of Directors has approved one progress payment to date, the last of which was approved on May 9, 2013. ATTACHMENTS: Name:Description:Type: ECI_YL_Blvd._PS_Progress_Pay_Request_2.pdf YL Blvd. Pump Station Progress Pay Request No. 2 Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 MB/RC 5-0 ITEM NO. 7.4 AGENDA REPORT Meeting Date: June 13, 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. 4 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. 4 in the net amount of $296,514.20 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. 4, in the amount of $312,120.21 for completed work through May 31, 2013. During this period, the contractor continued with installation of the new pipeline in Richfield Road, followed by grinding down the old pavement and installation of new base pavement. They also completed work at the Ohio Street location, including final paving of the driveway and street. The status of the construction contract with TBU Inc. is as follows: The current contract is $1,407,553.92 and 370 calendar days starting February 1, 2013 (including Change Orders No. 1 and No. 2, which added $48,253.81 and 0 days). If approved, Progress Payment No. 4 is $312,120.21 (22.2% of the total contract amount), less 5% retention of $15,606.01 for a net payment of $296,514.20. If approved, total payments to date including retention will be $846,470.21 (60.1% of the total contract amount). As of May 31, 2013, 120 calendar days were used (32.4% of the contract time). Staff reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 4 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 three progress payments to date for this project, the last of which was approved on May 23, 2013. ATTACHMENTS: Name:Description:Type: TBU_Phase_II_Waterline_Progress_Pay_Request_4.pdf TBU Phase II Waterline Progress Pay Report 4 Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 MB/RC 5-0 ITEM NO. 7.5 AGENDA REPORT Meeting Date: June 13, 2013 Budgeted:N/A To:Board of Directors Funding Source:N/A From:Steve Conklin, Acting General Manager Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:Yes Prepared By:Ricardo Hipolito Jr., Engineering Tech II CEQA Compliance:N/A Subject:Declaration of Restrictive Covenants with Stanley and Faye Schneider SUMMARY: The District has recorded sewer pipeline easement within lot 5 of Tract No. 9782. The property owners, Stanley and Faye Schneider, are requesting to replace an existing fiberglass spa with a concrete spa, inside the easement as shown on the attached exhibit. Staff reviewed the request and recommends approval subject to the execution of a Declaration of Restrictive Covenants. STAFF RECOMMENDATION: That the Board of Directors authorize the President and Secretary to execute the Declaration of Restrictive Covenants with Stanley and Faye Schneider. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee discussed this item at its meeting on June 6, 2013 and supports staffs recommendation. DISCUSSION: Property owners Stanley and Faye Schneider requested permission to replace an existing fiberglass spa with a concrete spa and install brick work, while retaining existing improvements including a block wall, fence, planter and concrete within the dedicated sewer easement at 5080 Webb Place (lot 5 of tract 9782). The improvements run parallel and across the sewer pipeline within the easement, as shown on the enclosed exhibit. Staff reviewed the applicants' request and determined the improvements would have minimal impact on operations and maintenance of the District's facilities. To further protect the District interest, staff recommends the execution of the attached Declaration of Restrictive Covenants Agreements, subject to approval as to form by General Counsel. The form used for these documents was developed by the District's legal counsel. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors authorized execution of similar Declaration of Restrictive Covenants with various developers and property owners. ATTACHMENTS: Name:Description:Type: DoRC_-_5080_Webb_Place.pdf Declaration of Restrictive Covenants Backup Material Exhibit_-_A.pdf Exhibit - A Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 RK/PH 5-0 1 RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of an official service thereof. ____________________________________ Steve Conklin - Secretary Space Above This Line for Recorder’s Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON DISTRICT EASEMENT) THIS DECLARATION OF RESTRICTIVE COVENANTS (“Declaration”) is made this 13th day of June, 2013, by and between YORBA LINDA WATER DISTRICT ("YLWD"), a public agency, created and operating under the authority of Division 12 of the California Water Code, and STANLEY SCHNEIDER AND FAYE SCHNEIDER (“Owner”), with reference to the following recitals of fact: RECITALS A. The Owner is the legal owner of that certain real property located at 5080 Webb Place, Yorba Linda, California 92686 ("Subject Property"), which is more particularly described as follows: LOT 5 OF TRACT 9782, IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE SUBDIVISION OF MAP RECORDED JUNE 6, 1980 IN BOOK 474, PAGES 19 TO 20 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORNAGE COUNTY. B. YLWD owns an Easement, as identified on the Tract Map No. 9782, recorded on June 6, 1980, in Book 474, Pages 19 through 20, Official Records of Orange County, California (“Easement”), across a portion of the Subject Property. Within the Easement, YLWD owns and maintains a 8-inch sewer main (“District Facilities”). 2 C. The Owner desires to construct a concrete spa with brick coping on top, while retaining an existing block wall, fence, planter and concrete (collectively herein referred to as “Improvements”) within and along the Easement area (hereinafter, “Encroachment”), as illustrated in Exhibit “A” attached hereto and incorporated by reference herewith. D. YLWD conditionally consents to Encroachment of the Improvements within and along the Easement area as stipulated in this Declaration. Owner is aware that the Improvements may lead to problems affecting and/or interfering with YLWD’s use of the Easement. E. Although the construction or existence of walls, structures, and other improvements within and along the Easement area may interfere or restrict YLWD’s Easement rights, the Owner wishes to construct and use the Improvements within and along the Easement area. NOW, THEREFORE, incorporating the above recitals, YLWD and Owner declare as follows: 1. Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code Section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assigns Bound. Since Owner wishes to pursue the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any future adverse events and to fund any necessary maintenance costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages caused by the Encroachment. 3. Damages to District Facilities. Owner assumes full responsibility, liability and shall pay for any cost(s) or damage(s) to the District Facilities and appurtenant structures, arising from or related to the construction, existence, and/or use of the Improvements. YLWD shall not be responsible for any cost(s) or damage(s) to the District Facilities and appurtenant structures that arise from the Encroachment. 4. Damages to Third Parties. Owner, its successors or assigns, agrees to indemnify and hold YLWD, its officers, directors, employees, agents and consultants, harmless against any third 3 party claims related to or arising out of the construction, existence and/or use of the Improvements. 5. Damages to Improvements. Owner acknowledges that the Improvements may be damaged or demolished to permit reasonable access to or reasonable work within and under the Easement area. YLWD, its officers, directors, employees, agents and consultants, shall not be responsible for any damage(s) to or because of the Improvements which results from YLWD's exercise of rights under the Easement. Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys’ fees) against YLWD, its officers, directors, employees, agents and consultants, for losses and damages to the Improvements and from any obligation to protect, preserve, repair, or replace the Improvements. Construction, use, protection, repair and replacement of the Improvements shall be entirely the risk and obligation of Owner, its successors or assigns, even if damage is caused by YLWD. (INTENTIONALLY BLANK) 4 6. Recording of Agreement. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations set forth herein. Approved as to Form: Kidman Law, LLP Arthur G. Kidman General Counsel YORBA LINDA WATER DISTRICT: Gary Melton President Steve Conklin Secretary OWNER: Stanley Schneider Faye Schneider ----------- PROPERTY LINE EX.MANHOLE ------------- � -- �� ` EXISTING GRASS YORBA LINDA BLVD. ----- ♦ \ EXISTING CMU WALL EX.FIBER GLASS SPA TO BE REPLACE WITH SITE CONCRETE 5080 ------------- ♦ \ WEBB BRICK AROUND \ PLACE SPA \r HILLWOOD PL CE \rp' EX.C RETE \O- ♦ PAV AREA \O \ T EMAIN \Y \\J ♦ \ w U \� ♦ \ m \tea. 0 ♦0 Z¢ LAWNDALE PLA E EASEMENT DEDICATED TO \ ♦ \\ EXISTING N 82 YLWD FOR WATERLINE& \ ♦ HOUSE SEWERLINE PURPOSES \ ♦ \ EX.MECHANICAL LOCATION \ \ \ LA COLLETTE PLA E EX.BRICK WALL ` FOR PLANTER TO REMAIN ♦ \ EX.W HIGH \ \ ♦ \\ WOOD FENCE \ ` ; \ 5080 EX.WALL \ \ ♦ \ WEBB PLACE FENCE LOT 5 EX.GATE EXISTING 8"VCP `\ �-- VICINITY MAP SEWER MAIN \\ /; NO SCALE 5070 WEBB PLACE LOT 4 WEEB PLACE 1 ♦ I ♦ 1 LOCATION MAP PREPARED BY: SCALE: EXHIBIT "A" NO SCALE YORBA LINDA WATER DISTRICT DECLARATION OF RESTRICTIVE DATE: COVENANTS FOR 06/06/2013 1717 E. MIRALOMA AVENUE PLACENTIA, CALIFORNIA 92870 5080 WEBB PLACE FILENAME: (714) 701-3000 ITEM NO. 7.6 AGENDA REPORT Meeting Date: June 13, 2013 Budgeted:Yes Total Budget:$1,360,000 To:Board of Directors Cost Estimate:$0 Funding Source:Water Capital Reserves From:Steve Conklin, Acting General Manager Account No:101-2700 Job No:J2011-20 Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:Yes Prepared By:Anthony Manzano, Senior Project Manager CEQA Compliance:N/A Subject:Agreement with Yorba Linda Country Club SUMMARY: An Agreement was negotiated with the Yorba Linda Country Club (YLCC) for YLWD to construct approximately 150-feet of 8-inch diameter waterline through the YLCC, in exchange for YLWD installing Erosion Control Improvements (Improvements) near the Imperial Highway golf cart tunnel. Because the price of the Improvements is essentially equal to the value of the pipeline easement, staff requests that the Board of Directors approve moving forward with the execution of this Agreement. STAFF RECOMMENDATION: That the Board of Directors authorize approval and execution of the "Agreement for Construction of Improvements and Granting of Easements," between Yorba Linda Country Club and Yorba Linda Water District. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee discussed this matter at its June 6, 2013 meeting and supports staff's recommendation. DISCUSSION: As part of the 2012 Waterline Replacement Project, YLWD and YLCC staff negotiated a no-cost Agreement. The Agreement called for the YLWD to install approximately 150-feet of 8-inch diameter waterline through the YLCC's golf course, in exchange for YLWD installing Erosion Control Improvements, as depicted on Exhibit A of the attachment. The cost of the Improvements is essentially equal to the value of the Easement being provided by YLCC. Proposed terms and conditions for the Agreement were negotiated between District and YLCC staff, and were modified by legal counsel of the two entities. A copy of the proposed Agreement is attached for review. Key items in the agreement are summarized as follows: YLWD will construct Improvements at its expense. In exchange for YLWD constructing the Improvements, YLCC grants no-cost easement rights to YLWD. The District will periodically access the easement during construction and later for maintenance of the pipeline as necessary, which will otherwise be available to YLCC and others when not in use by YLWD. YLWD will access the easement from Pepper Tree Lane and Roland Bigonger Park. Please note: Subsequent to Planning-Engineering-Operations Committee review of the Agreement, legal counsel of the two entities agreed to a 300 day Improvement completion date, as noted on section 2 of the attached Agreement. 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: YLCC-YLWD_Agreement___Exhibits_06-04-13.pdf YLCC-YLWD Agreement & Exhibits Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 MB/RC 5-0 EX 8' SS (VCP) EX. 10" W (ACP) EX. 2" GAS \ b ACKINGI IJPIT VAULT BEGIN PIPE 10+00.00 N 2263032.8970 E 6092521.5779 EX. PRV �(TO BE REMOVED) W, ' 1 °0-24.36 I � 1END PIPELINE _ �'�' 14+57.07 N 2263225.0914 E 6092838.219' (CONNECT TO EX. '2" ACP WATERL:NE WITH TRANSITION CODLING) SEE DETAIL 7 I NE (FOR SECTION' J 2' THK. SECTION NON-GROUTED OF RIP-RAP I (5'W X 30'L) D4 NOTE 1 A�OKG SLOPE PER DETAIL /TREES TO EE REMOVED UND DIRECTION / YLCC \\ / l �-EX. WALK/ GO-F 1 , '45741 CART PATH PETE I V S" DW V cX. WALK/ GOLF CART PATil f'X. FENCE EX 8" SS (VCP) \ �EX. 12" W (ACP) � -A, YLCC GOLF COURSE 14+45.40 14 ]3 ° Pf-- - 7C.83' 1' THK. SECTION NON-GROU-LD OF 1OWX 15L ALONG SLOPE PER DETAIL 13+94.19 1.` (FOR SECTION) D5 EX. GOLF CART "UNNEL PROP. 8' STL. PIPEJNIE (KM ON WALL IN -UNNEL) PER DETAIL 5 D3 \ 8" DW ._, m 41 TR, NO, 3'707 55/ M.M. 33-3 \' LOT SElY CORNER LOT 23° PREPARED BY: ]y M\a?tn�I\7-11L O.R. E)(=N0 WA7ERM /--EASEIAEM tat 11327 \ \\ /292-293. OR �A \; PARCEL 3(PROPOSE® \ WATER EASEMEd9'A'j / N 08'28'09" E 30.94' / POP-2ND CL sLANDALLGIED L TOM.YORBA PAR7MONOF i RANCHO C. ArDE SANTA ANA 23 WATER PAR 4 POSED 0 E 144.32' �N 81'05'27" 354038" E PARCEL 2(PROPOSED S T.P.0.8. WATER EASEMOM /9 N 3r21•I9" E 60.00' POR 2ND CUM LAM ALLOTED TOM.YORBAPARmzoxOF RANCHO CANONDE&tNTAANA YORBA LINDA WATER DISTRICT ELM �v 9717 E.MIRALOMA AVENUE PLACENTIA,CALIFORNIA 92870 (794)701-3100 EXHIBIT "2" SCALE: PARCEL 2 AS-NOTED 2010 WATERLINE REPLACEMENT PROJECT' DATE: PHASE II 0410512012 PIPELINE EASEMENT FILENAME: POR.2ND CLASS LAND ALLOTED TOM YORBA PARTITION OF SS, RANCHO CANON DE SANTA ANA TR. NO 8707 4g41 M.M. 55/33-3 S T.P.Q.B. X1'4 i P.O.B. 62'' . 2 v 08� F �� p �v cs LOT 23 \ ��o O� PARCEL 1 \ \ �� PROPOSED '\ '\ CONSTRUCTION W EASEMENT 08.0233 S ti 33.56' S B1.0527" W �.3 6• s�. .00• 42.90 SO, S), POR.2ND CLASSLANDALLOTED �p `G TOM YORBA PARTITION OF RANCHO CANON DE SANTA ANA PREPARED BY: - YORBA LINDA WATER DISTRICT EXHIBIT "2„ PARCEL 1 1717 E. MIRALOMA AVENUE 2010 WATERLINE REPLACEMENT PROJECT PLACENTIA, CALIFORNIA 92870 PHASE II (714) 701-3100 T TEMPORARY CONSTRUCTION EASEMENT SCALE: AS-NOTED DATE: 04/05/2012 FILENAME: ITEM NO. 7.7 AGENDA REPORT Meeting Date: June 13, 2013 Budgeted:Yes Total Budget:$80,000 To:Board of Directors Cost Estimate:$250,000 Funding Source:All Water Funds From:Steve Conklin, Acting General Manager Presented By:Steve Conklin, Acting General Manager Dept:Administration Reviewed by Legal:Yes Prepared By:Steve Conklin, Acting General Manager CEQA Compliance:N/A Subject:First Amendment to OCTA Settlement Agreement SUMMARY: A First Amendment to the OCTA Settlement Agreement is requested by OCTA, which calls for YLWD to agree to the Federally-required Buy America Requirements of this Federally-funded project. STAFF RECOMMENDATION: That the Board of Directors approve execution of the First Amendment to Settlement Agreement and Mutual Release between OCTA and YLWD for the Lakeview Grade Separation Project. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee considered this item at its May 21, 2013 meeting and supports the staff recommendation. DISCUSSION: Orange County Transportation Authority's Lakeview Grade Separation Project (and the other related grade-separation projects under this program) is a Federal Aid Project. OCTA's attorney, through the District's attorney, has informed us that OCTA as the local constructor and YLWD as a local facilities owner, are required to agree to the Federal Highway Administration's Buy America Requirements of the Code of Federal Regulations. In the Agreement approved by the Board on February 14, 2013, the District's costs for the Project are capped at $250,000. The District's attorney and staff have reviewed the attached First Amendment to Settlement Agreement and Mutual Release and recommend approval. There are no added costs to YLWD related to this amendment. ATTACHMENTS: Name:Description:Type: First_Amendment_to_Settlement_Agreement_with_Yorba_Linda_Water_District_5- 9-13.pdf First Amendment to Settlement Agreement Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 MB/RC 5-0 FIRST AMENDMENT 926886.1 FIRST AMENDMENT TO SETTLEMENT AGREEMENT AND MUTUAL RELEASE This First Amendment to Settlement Agreement and Mutual Release ("First Amendment") is entered into by and between ORANGE COUNTY TRANSPORTATION AUTHORITY, (“OCTA”) and YORBA LINDA WATER DISTRICT (“YLWD”) (collectively the "Parties"). A. The Parties entered into that certain Settlement Agreement and Mutual Release executed February 14, 2013 (the "Agreement") which is incorporated herein by reference. B. The Parties desire to amend the Agreement to supplement a portion of the Agreement. Now, therefore, the Parties agree as follows: FIRST AMENDMENT 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Agreement. 2. General Conditions – Buy America. It is understood that the Project is a Federal Aid Project and accordingly, 23 CFR, Chapter 1, Part 645 is hereby incorporated into this First Amendment by reference. YLWD, as Owner, and OCTA, as the entity constructing the Project, shall comply with the Federal Highway Administration (FHWA) Buy America Requirements of 23 Code of Federal Regulations (CFR) 635.410, which permits FHWA participation in the Project only if domestic steel and iron will be used on the Project. To be considered domestic, all steel and iron used and all products manufactured from steel and iron must be produced in the United States and all manufacturing processes, including application of a coating, for these materials must occur in the United States. Coating includes all processes that protect or enhance the value of the material to which the coating is applied. This requirement does not preclude minimal use of foreign steel and iron materials, provided the cost of such materials does not exceed 0.1% of the total contract cost. 3. Integration. This First Amendment supersedes all negotiations with respect to the subject matter hereof. This First Amendment amends, as set forth herein, the Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. [Signatures on following page] FIRST AMENDMENT 926886.1 IT IS SO AGREED. Dated: __________________ ____________________________________ Darrell Johnson, Chief Executive Officer ORANGE COUNTY TRANSPORTATION AUTHORITY Dated: __________________ ____________________________________ Steven Conklin, Acting General Manager : YORBA LINDA WATER DISTRICT APPROVED AS TO FORM AND CONTENT: Dated: __________________ WOODRUFF, SPRADLIN & SMART, APC ________________________________________ Kennard R. Smart, Jr. General Counsel, ORANGE COUNTY TRANSPORTATION AUTHORITY ITEM NO. 7.8 AGENDA REPORT Meeting Date: June 13, 2013 To:Finance-Accounting Committee From:Steve Conklin, Acting General Manager Presented By:Stephen Parker, Finance Manager Dept:Finance Prepared By:Delia Lugo, Senior Accountant Subject:Unaudited Financial Statements for the Period Ending March 31, 2013 SUMMARY: Presented are the District's Unaudited Financial Statements for the Period Ending March 31, 2013. STAFF RECOMMENDATION: That the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending March 31, 2013. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this item at its meeting held May 31, 2013 and supports staff recommendation. DISCUSSION: For the period ending March 31, 2013, staff is presenting unaudited statements in the CAFR format. We have included the traditional budget to actual statements for the District as a whole, as well as the individual water and sewer funds and the debt service coverage calculation. Water Operating Revenue, as presented, is 76.3% of annual budget, which is higher than the historical trend of 71.4% through the third quarter of the fiscal year. Other Operating Revenue 87.5% of annual budget. Sewer Other Operating Revenue, as presented, is 74.8% of annual budget. Variable Water Costs are 75.4% of budget, due to higher than budgeted water consumption as well as purchasing more expensive import water prior to the January 1st rate increase. Salary Related Expenses are 72.1% of budget three quarters of the way through the fiscal year. With the issuance of the 2008 Certificates of Participation (COP's) and the Refunding Revenue Bonds, Series 2012A the District covenanted "...to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 110% of the Debt Service for such Fiscal Year." To confirm the covenant is upheld, a calculation is made quarterly and presented to the Finance- accounting Committee and received and filed by the Board of Directors. Accordingly, the unaudited debt service ratio through March 2013 is shown in the calculation as 178%. This shows strong financial health for the District as it pertains to the debt service ratio. 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): On March 14, 2013 the Board received and filed the Unaudited Financial Statements for the Period Ending December 31, 2012. ATTACHMENTS: Name:Description:Type: FY_2013_3rd_Qtr_Consolidated_Balance_Sheet.xlsx FY 2013 3rd Qtr Consolidated Balance Sheet Backup Material 2013_Qtr_3_Debt_Service_Clac.xlsx 2013 3rd Qtr Debt Srvice Calculation Backup Material 2013_Qtr_3_Consolidated_Stmt.xlsx 2013 3rd Qtr Consolidated Statement Backup Material 2013_Qtr_3_Water_Stmt.xlsx 2013 3rd Qtr Water Statement Backup Material 2013_Qtr_3_Sewer_Stmt.xlsx 2013 3rd Qtr Sewer Statement Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 MB/RC 5-0 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETSUNAUDITED COMBINING SCHEDULE OF NET ASSETS March 31, 2013 (With March 31, 2012 for comparison only) ASSETS March 2013 March 2012 (With March 31, 2012 for comparison only) ASSETS March 2013 March 2012 CURRENT ASSETS:CURRENT ASSETS: Cash and cash equivalents 15,762,614$ 24,223,256$ Cash and cash equivalents 15,762,614$ 24,223,256$ Investment 2,143,553 2,160,071 Accounts receivable - water and sewer services 2,756,727 2,556,903 Accounts receivable - water and sewer services 2,756,727 2,556,903 Accounts receivable - property taxes 102,192 102,192 Accounts receivable - property taxes 102,192 102,192 Accrued interest receivable 8,095 21,393 Prepaid expenses & other deposits 1,084,105 287,468 Inventory 236,459 254,947 Inventory 236,459 254,947 TOTAL CURRENT ASSETS 22,093,744 29,606,230 NONCURRENT ASSETS:NONCURRENT ASSETS: Bond issuance costs 1,417,030 733,284 Other post-employment benefit (OPEB) asset 176,295 76,613 Other post-employment benefit (OPEB) asset 176,295 76,613 Capital assets:Capital assets: Non-depreciable 14,315,667 11,425,334 Depreciable, net of accumulated depreciation 186,415,180 189,608,168 Depreciable, net of accumulated depreciation 186,415,180 189,608,168 TOTAL NONCURRENT ASSETS 202,324,172 201,843,399 TOTAL NONCURRENT ASSETS 202,324,172 201,843,399 TOTAL ASSETS 224,417,916 231,449,629 TOTAL ASSETS 224,417,916 231,449,629 LIABILITIESLIABILITIES CURRENT LIABILITIES:CURRENT LIABILITIES: Accounts payable 2,177,655 2,608,809 Accrued expenses 651,514 80,067 Accrued expenses 651,514 80,067 Accrued interest payable 878,596 948,836 Accrued interest payable 878,596 948,836 Certificates of Participation - current portion705,000 925,000 Refunding Revenue Bond - current portion 260,000 - Refunding Revenue Bond - current portion 260,000 - Compensated absences 236,257 267,806 Compensated absences 236,257 267,806 Customer and construction deposits 277,903 246,817 Deferred revenue 414,197 433,737 Deferred revenue 414,197 433,737 TOTAL CURRENT LIABILITIES 5,601,122 5,511,072 LONG-TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue 13,856,701 14,147,513 Deferred annexation revenue 13,856,701 14,147,513 Compensated absences 748,148 803,418 Certificate of Participation 33,008,358 41,358,376 Refunding Revenue Bond 8,070,000 - Refunding Revenue Bond 8,070,000 - TOTAL LONG TERM LIABILITIES (LESS TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION)55,683,207 56,309,307 TOTAL LIABILITIES 61,284,329 61,820,379 NET ASSETS:163,133,587$ 169,629,250$ YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSESUNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the period ended March 31, 2013 AND CHANGES IN NET ASSETS (With fiscal year ended March, 2012 for comparison only) For the period ended March 31, 2013 March 2013 March 2012 (With fiscal year ended March, 2012 for comparison only) March 2013 March 2012 OPERATING REVENUES:OPERATING REVENUES: Water sales 19,018,272$ 18,448,098$ Sewer revenues 1,291,195 1,282,757 Sewer revenues 1,291,195 1,282,757 Other operating revenues 555,881 664,740 Other operating revenues 555,881 664,740 TOTAL OPERATING REVENUES20,865,348 20,395,595 OPERATING EXPENSESOPERATING EXPENSES Variable water costs 9,770,544 9,256,797 Variable water costs 9,770,544 9,256,797 Personnel services 5,517,677 5,318,516 Supplies and services 2,949,119 2,712,675 Supplies and services 2,949,119 2,712,675 Depreciation and amortization 5,087,132 4,923,825 Depreciation and amortization 5,087,132 4,923,825 TOTAL OPERATING EXPENSES23,324,472 22,211,813 OPERATING INCOME/(LOSS)(2,459,124) (1,816,218) OPERATING INCOME/(LOSS)(2,459,124) (1,816,218) NONOPERATING REVENUES (EXPENSES):NONOPERATING REVENUES (EXPENSES): Property taxes 829,722 780,018 Investment income 93,823 210,690 Interest expense (1,344,189) (1,416,831) Interest expense (1,344,189) (1,416,831) Other nonoperating revenues 655,021 673,862 Other nonoperating expenses (34,709) (99,258) TOTAL NONOPERATING REVENUES/EXPENSES 199,668 148,481 TOTAL NONOPERATING REVENUES/EXPENSES 199,668 148,481 NET INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS (2,259,456) (1,667,737) CAPITAL CONTRIBUTIONS 350,819 17,061,312 CHANGES IN NET ASSETS (1,908,637) 15,393,575 CHANGES IN NET ASSETS (1,908,637) 15,393,575 NET ASSETS - BEGINNING OF YEAR165,042,224 154,235,675 NET ASSETS - FOR PERIOD END MARCH 31, 2013163,133,587$ 169,629,250$ YTD Included in Actual Debt Service FY 2013 Calculation OPERATING REVENUES: Water sales 19,018,272$ 19,018,272$ Other operating revenues 512,672 512,672 TOTAL OPERATING REVENUES 19,530,944 19,530,944 OPERATIANG EXPENSES: Variable water costs 9,770,544 9,770,544 Personnel services 4,892,921 4,892,921 Supplies and services 2,693,081 2,693,081 Depreciation and amortization 4,119,789 TOTAL OPERATING EXPENSES 21,476,335 17,356,546 OPERATING INCOME(LOSS)(1,945,391)2,174,398 NONOPERATING REVENUES (EXPENSES): Yorba Linda Water District Water Fund For The Period Ending March 31, 2013 NONOPERATING REVENUES (EXPENSES): Property taxes 829,722 829,722 Investment income 80,282 80,282 Interest expense (1,344,189) Other nonoperating revenues 650,602 650,602 Other nonoperating expenses (34,709)(34,709) TOTAL NONOPERATING REVENUES/EXPENSES 181,708 1,525,897 NET INCOME(LOSS) BEFORE CAPITAL (1,763,683)3,700,295 CONTRIBUTIONS CAPTIAL CONTRIBUTIONS 193,770 CHANGES IN NET ASSETS (1,569,913)3,700,295 DEBT SERVICE RATION CALCULATION NET REVENUES $3,700,295 DEBT SERVICE 2,075,153 %178% OriginalYTDYTDYTD BudgetActualUnder(Over)% of FY 2013FY 2013BudgetBudget Revenue (Operating): Water Revenue (Residential)$15,405,197$11,737,582$3,667,61576.19% Water Revenue (Commercial & Fire Det.)1,822,6651,424,238398,42778.14% Water Revenue (Landscape/Irrigation)4,035,1213,074,870960,25176.20% Water Revenue (Service Charge)3,755,1912,781,582973,60974.07% Sewer Charge Revenue 1,548,6821,168,212380,47075.43% Locke Ranch Assessments 198,433122,98375,45061.98% Other Operating Revenue 643,737555,88187,85686.35% Total Operating Revenue:27,409,02620,865,3486,543,67876.13% Revenue (Non-Operating): Interest 170,00093,82376,17755.19% Property Tax 1,244,320829,722414,59866.68% Other Non-Operating Revenue494,437655,021(160,584)132.48% Total Non-Operating Revenue:1,908,7571,578,566330,19182.70% Total Revenue 29,317,78322,443,9146,873,86976.55% Expenses (Operating): Variable Water Costs (G.W., Import & Power)12,953,0249,770,5443,182,48075.43% Salary Related Expenses 7,648,8915,517,6772,131,21472.14% Supplies & Services 3,849,602 2,949,119 900,483 76.61% Yorba Linda Water District Summary Financial Report Water & Sewer Funds For The Period Ending March 31, 2013 Supplies & Services 3,849,602 2,949,119 900,483 76.61% Total Operating Expenses24,451,51718,237,3406,214,17774.59% Expenses (Non-Operating): Interest on Long Term Debt2,011,3951,344,189667,20666.83% Other Expense 124,21034,70989,50127.94% Total Non-Operating Expenses:2,135,6051,378,898756,70764.57% Total Expenses 26,587,12219,616,2386,970,88473.78% Net Income (Loss) Before Capital Contributions 2,730,661 2,827,676 (97,015)103.55% Capital Contributions - 350,819 350,819 0.00% Net Income (Loss) Before Depreciation 2,730,661 3,178,495 253,804 116.40% Depreciation & Amortization6,602,3395,087,132 1,515,20777.05% Total Net Income (Loss)($3,871,678)($1,908,637)($1,963,041)49.30% YTD YTD YTD Budget Actual Under(Over)% of FY 2013 FY 2013 Budget Budget Revenue (Operating): Water Revenue (Residential)$15,405,197 $11,737,582 $3,667,615 76.19% Water Revenue (Commercial & Fire Det.)1,822,665 1,424,238 398,427 78.14% Water Revenue (Landscape/Irrigation)4,035,121 3,074,870 960,251 76.20% Water Revenue (Service Charge)3,755,191 2,781,582 973,609 74.07% Other Operating Revenue 585,929 512,672 73,257 87.50% Total Operating Revenue:25,604,103 19,530,944 6,073,159 76.28% Revenue (Non-Operating): Interest 150,000 80,282 69,718 53.52% Property Tax 1,244,320829,722414,59866.68% Other Non-Operating Revenue 490,262 650,602 (160,340)132.70% Total Non-Operating Revenue:1,884,582 1,560,606 323,976 82.81% Total Revenue 27,488,685 21,091,550 6,397,135 76.73% Expenses (Operating): Variable Water Costs (G.W., Import & Power)12,953,024 9,770,544 3,182,480 75.43% Salary Related Expenses 6,741,403 4,892,921 1,848,482 75.77% Supplies & Services: Communications 280,232 150,337 129,895 53.65% Contractual Services 455,041 328,174 126,867 72.12% Data Processing 125,866 96,159 29,707 76.40% Dues & Memberships 57,609 51,702 5,907 89.75% Fees & Permits 139,165 135,294 3,871 97.22% Board Election 47,988 - 47,988 0.00% Yorba Linda Water District Water Fund For The Period Ending March 31, 2013 Board Election 47,988 - 47,988 0.00% Insurance 259,656 179,448 80,208 69.11% Materials 451,506 459,888 (8,382)101.86% District Activities, Emp Recognition 17,298 14,048 3,250 81.21% Maintenance 307,065 220,608 86,457 71.84% Non-Capital Equipment 109,782 105,933 3,849 96.49% Office Expense 37,702 31,349 6,353 83.15% Professional Services 740,578 606,672 133,906 81.92% Training 41,353 14,282 27,071 34.54% Travel & Conferences 40,833 17,822 23,011 43.65% Uncollectible Accounts 36,270 1,814 34,456 5.00% Utilities 79,050 62,409 16,641 78.95% Vehicle Equipment 282,400 217,142 65,258 76.89% Supplies & Services Sub-Total 3,509,393 2,693,081 816,312 76.74% Total Operating Expenses 23,203,820 17,356,546 5,847,274 74.80% Expenses (Non-Operating): Interest on Long Term Debt 2,009,777 1,344,189 665,588 66.88% Other Expense 118,210 34,709 83,501 29.36% Total Non-Operating Expenses:2,127,987 1,378,898 749,089 64.80% Total Expenses 25,331,807 18,735,444 6,596,363 73.96% Net Income (Loss) Before Capital Contributions 2,156,878 2,356,106 (199,228)109.24% Capital Contributions - 193,770 193,770 0.00% Net Income (Loss) Before Depreciation 2,156,878 2,549,876 (5,458)118.22% Depreciation & Amortization 5,332,175 4,119,789 1,212,386 77.26% Total Net Income (Loss)($3,175,297)($1,569,913)($1,605,384)49.44% YTD YTD YTD Budget Actual Under(Over)% of FY 2013 FY 2013 Budget Budget Revenue (Operating): Sewer Charge Revenue$1,548,682$1,168,212$380,47075.43% Locke Ranch Assessments198,433122,983 75,45061.98% Other Operating Revenue57,80843,209 14,59974.75% Total Operating Revenue:1,804,9231,334,404470,51973.93% Revenue (Non-Operating): Interest 20,00013,541 6,45967.71% Other Non-Operating Revenue4,1754,419(244)105.84% Total Non-Operating Revenue:24,17517,9606,21574.29% Total Revenue 1,829,098 1,352,364 476,734 73.94% Expenses (Operating): Salary Related Expenses907,488624,756282,73269.48% Supplies & Services: Communications 23,018 10,051 12,967 43.67% Contractual Services34,28023,662 10,61869.03% Data Processing 9,4746,980 2,49473.68% Dues & Memberships4,5833,884 69984.75% Fees & Permits 12,155 11,451 704 94.21% Board Election 3,612 - 3,612 0.00% Insurance 19,544 11,817 7,727 60.46% Materials 34,51912,875 21,64437.30% District Activities, Emp Recognition1,302 1,055 24781.03% Maintenance 71,405 85,911 (14,506)120.32% Yorba Linda Water District Sewer Fund For The Period Ending March 31, 2013 Maintenance 71,405 85,911 (14,506)120.32% Non-Capital Equipment18,26911,792 6,47764.55% Office Expense 2,8232,360 46383.60% Professional Services36,88222,223 14,65960.25% Training 4,7474,895 (148)103.12% Travel & Conferences3,4181,052 2,36630.78% Uncollectible Accounts2,730260 2,4709.52% Utilities 5,9505,069 88185.19% Vehicle Equipment51,49940,701 10,79879.03% Supplies & Services Sub-Total340,209256,03884,17175.26% Total Operating Expenses1,247,697880,794366,90370.59% Expenses (Non-Operating): Interest Expense 1,618 - 1,618 0.00% Other Expense 6,000- 6,000 0.00% Total Non-Operating Expenses:7,618- 7,6180.00% Total Expenses 1,255,315 880,794 374,521 70.17% Net Income (Loss) Before Capital Contributions 573,783 471,570 102,213 82.19% Capital Contributions - 157,049157,0490.00% Net Income (Loss) Before Depreciation 573,783 628,619 259,262 109.56% Depreciation & Amortization1,270,164967,343302,821 76.16% Total Net Income (Loss)($696,381)($338,724)($43,559)48.64% ITEM NO. 8.1 AGENDA REPORT Meeting Date: June 13, 2013 To:Board of Directors From:Steve Conklin, Acting General Manager Presented By:Stephen Parker, Finance Manager Dept:Finance Reviewed by Legal:Yes Prepared By:Stephen Parker, Finance Manager Subject:Financial Reserves Policy for FY 2013/14 STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 13-07 Adopting the Financial Reserves Policy for Fiscal Year 2013/14. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this matter at its meeting held May 31, 2013 and supports staff's recommendation. DISCUSSION: Attached is the proposed Financial Reserves Policy for FY 2013/14. Besides some minor numbers that are updated annually, the main difference from last year's version is the addition of a Debt Service Reserve, which is currently funded annually and listed in monthly Investment Reports, but not mentioned in the District's Financial Reserves Policy. The initial impact of adding the Debt Service Reserve would be having staff fund the reserve by moving any excess Operating Reserve balances to the Debt Service Reserve to establish the reserve's minimum level. After that initial transfer, no further annual funding beyond what is currently funded through water rates would be necessary. The other impact of this addition would be raising the minimum reserve threshold by the Debt Service Reserve balance. Adding this reserve to the District's policy will not require any future rate increases to fund the reserve. STRATEGIC PLAN: FR 2-A: Review the Reserve Policy and Funding Levels Annually PRIOR RELEVANT BOARD ACTION(S): The Board adopted the current Financial Reserves Policy by approving Resolution No. 12-12 on June 14, 2012. ATTACHMENTS: Name:Description:Type: Resolution_13-07_Adopting_Financial_Reserves_Policy.doc Resolution Resolution Financial_Reserves_Policy_-_FY_13.14.docx Reserve Policy Backup Material Resolution No. 13-07 Adopting the Financial Reserves Policy 1 RESOLUTION NO. 13-07 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE FINANCIAL RESERVES POLICY AND RESCINDING RESOLUTION NO. 12-12 WHEREAS, the purpose of the Yorba Linda Water District’s (YLW D) Financial Reserves Policy is to ensure that the District continues to have sufficient funding available to meet its operating, non-operating, capital and debt service obligations; and WHEREAS, adequate reserves and sound financial policies maintain YLWD’s bond ratings in the capital markets, provide financing flexibility and sustain debt covenant compliance; and WHEREAS, the District has completed a comprehensive Asset Management Plan and has prepared a rate study and five-year financial plan; and WHEREAS, the Financial Reserves Policy recommends establishing various reserve categories, defines the purpose and use of these funds and identifies target levels and priority funding of the reserves; and WHEREAS, the current policy is being revised as changes have been made to the existing Financial Reserves Policy. NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does find, determine, and resolve: Section 1. The financial reserves policy is attached hereto as Exhibit “A”. Resolution No. 13-07 Adopting the Financial Reserves Policy 2 Section 2. This Financial Reserves Policy adopted herein takes effect on July 1, 2013 and Resolution No. 12-12 is hereby rescinded on June 30, 2013. PASSED AND ADOPTED this 13th day of June 2013 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Gary Melton, President Yorba Linda Water District ATTEST: Steven R. Conklin, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP June 13, 2013 Page 1 of 4 RESERVE 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. 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. June 13, 2013 Page 2 of 4 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 customers 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 and $345,000 for the sewer fund, less money set aside for the Maintenance Reserve. Funding with available funds based on the District’s operations shall be allocated quarterly. 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. June 13, 2013 Page 3 of 4 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 Debt Service Reserve A. Definition and Purpose – Established to provide funding for semi-annually scheduled debt service payments. B. Target Level – The District’s highest annual debt service payment – currently $2,723,509. C. Events or Conditions Prompting the Use of the Debt Service Reserve – Semi-annual debt service payments will be made out of this fund, with funding on the water rate replenishing the fund annually. 1.5 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. As of November 2, 2011, an actuary determined that the District’s Other Post Employment Benefit (OPEB) liability was $1,433,197. When combined with a liability on the District’s books for vacation, compensatory and sick time of $1,063,572 at June 30, 2012, the target is projected to be approximately $2,500,000 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. 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. June 13, 2013 Page 4 of 4 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. End of Policy Document ITEM NO. 8.2 AGENDA REPORT Meeting Date: June 13, 2013 To:Board of Directors From:Steve Conklin, Acting General Manager Presented By:Stephen Parker, Finance Manager Dept:Finance Reviewed by Legal:Yes Prepared By:Stephen Parker, Finance Manager Subject:Appropriations Limit for FY 2013/14 SUMMARY: Each year the District must adopt the Appropriations Limit and factors used to calculate this number, in accordance with Proposition 13, Government Code Section 7900 and Article XIIIB of the California Constitution. The appropriations limit assures government agencies do not assess and collect taxes in excess of the controlled limits. The District receives a relatively small amount of revenue from property taxes annually and is historically well below the Appropriations Limitation each year. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 13-08 Adopting the Appropriations Limit for Fiscal Year 2013/14. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee reviewed this matter at its meeting held May 31, 2013 and supports staff's recommendation. DISCUSSION: In 1977, California voters passed Proposition 13, which limited property tax assessments to 1% of a property's market value and limited assessed value increases to 2% per year. Concurrent with the reduction of property taxes, the voters also passed Proposition 4, the Gann Spending Limitation Initiative, which added Article XIIIB to the California Constitution. Under Article XIIIB, a governmental agency is restricted in the amount of annual appropriations from the proceeds of taxes except taxes to pay voter-approved bond debt service. If proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or through revised fee schedules. An excess in one year may be offset against a deficit in the following year, so effectively the limitation may be exceeded in a single year but not over any consecutive two-year period. District staff performed the required calculation to determine the appropriations limits for FY 2013/14, in compliance with the terms of Article XIIIB of the California Constitution and Government Code Section 7900. The starting point for computing the Appropriations Limit is the total of Appropriations Subject to Limitation in the Base Year of 1978/79. This number is multiplied by controlled factors each successive year to determine the current year's appropriation limit. The State Department of Finance, Population Research Unit, provides inflation and population figures each year. These two are multiplied together to determine the final percentage by which the prior year's limit is increased (or decreased). The District's property tax revenue of $1,264,672, budgeted for FY 2013/14, is substantially lower than the calculated limitation of $5,983,590. Therefore, there are no excess appropriations that must be returned to the taxpayers. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors adopted Resolution No. 12-11 on June 14, 2012, Adopting the Appropriations Limit for Fiscal Year 2012/13. ATTACHMENTS: Name:Description:Type: Resolution_13-08_Adopting_Appropriations_Limit.doc Resolution Backup Material GANN_Calculation.xlsx Calculation Backup Material Resolution No. 13-08 Adopting the Appropriations Limit for FY 2013/14 1 RESOLUTION NO. 13-08 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2013/14 WHEREAS, under the terms of Article XIIIB of the California Constitution and Government Code Section 7900 et seq., all local agencies are required to establish, by resolution, an appropriations limit for each fiscal year; and WHEREAS, in June 1990, voters in the State of California approved Proposition 111 which amended Government Code Section 7900 et seq., modifying the method of calculation for the appropriations limit and requiring all local agencies to select, by resolution, the annual adjustment factors used to perform the calculations; and WHEREAS, the District staff has performed the required calculations to determine the limit for Fiscal Year 2013/14, in compliance with the above provisions and made the documentation used in the determination of the appropriations limit and other necessary determinations available to the public at least fifteen days prior to the date of this meeting. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That there is hereby adopted, pursuant to Article XIIIB of the California Constitution and Government Code Section 7900 et seq., as amended by Proposition 111, an appropriations limit for Fiscal Year 2013/14 of $5,983,590. Resolution No. 13-08 Adopting the Appropriations Limit for FY 2013/14 2 Section 2. The annual adjustment factors are the weighted average percentage change in the population of the cities within the District’s jurisdiction, and the percentage change in the California Per Capita Income. PASSED AND ADOPTED this 13th day of June 2013 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Gary Melton, President Yorba Linda Water District ATTEST: Steven R. Conklin, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP APPROPRIATIONS SUBJECT TO LIMITATION Special District: Yorba Linda Water District Fiscal Year: 2013-2014 Budget: __X__ or Actual ____ REVENUE AMOUNTSOURCE A. LAST YEAR'S LIMIT 5,636,910 B. ADJUSTMENT FACTORS 1. Population % 0.00%0.98%1.0098(Weighted Avg Calc) 2. Inflation % 2.00%5.12%1.0512(State Finance) Total Adjustment %1.0615(b1*b2) C. ANNUAL ADJUSTMENT $ BUDGET 5,983,590B*A D. OTHER ADJUSTMENTS sub total E. TOTAL ADJUSTMENTS5,983,590(C+D) F. THIS YEAR'S LIMIT 5,983,590(A+E) ITEM NO. 8.3 AGENDA REPORT Meeting Date: June 13, 2013 Budgeted:Yes To:Board of Directors Funding Source:All Funds From:Steve Conklin, Acting General Manager Presented By:Gina Knight, HR/Risk Manager Dept:Human Resources/Risk Management Prepared By:Amelia Cloonan, Human Resources Analyst Subject:Proposed Budgeted Positions for Fiscal Year 2013/14 SUMMARY: The District's Board of Directors on an annual basis adopts a Budget. In addition, the Board considers and approves the funding for the proposed positions for that give Fiscal Year. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 13-09 Approving the Budgeted Positions for Fiscal Year 2013/14 and Rescinding Resolution No. 12-27. DISCUSSION: The District's Board of Directors will consider adopting a Budget that will fund seventy-seven (77) full-time positions and four (4) part-time positions for Fiscal Year 2013/14. The part-time staff will include a half-time GIS Technician to assist the IT Department, a part-time Records Management Clerk within the Administration Department, a part-time File Clerk within the HR/Risk Management Department and one (1) half-time intern to assist with public relations/government affairs. For the proposed Fiscal Year 2013/14 personnel needs, staff is proposing the following: to add one position, Safety and Training Coordinator, and to reclassify five (5) existing positions. STRATEGIC PLAN: WE 1-D: Develop Methodologies to Assist Employees in Attaining Career Expectations WE 2-D: Develop Methodologies to Assist Employees in Preparing for Advancement PRIOR RELEVANT BOARD ACTION(S): The Board annually considers adopting a resolution authorizing budgeted positions, in accordance with the adopted Personnel Rules. The Board adopted Resolution No. 12-27 approving revisions to the budgeted positions for the remainder of FY 2012/13 on November 8, 2012. ATTACHMENTS: Name:Description:Type: Resolution_13-09.doc Resolution Resolution Reso_13-09_Exhibit_A_Authorized_Positions_FY_2013- 2014_-_FINAL.xls Exhibit "A"Backup Material Resolution No. 13-09 Adopting the Budgeted Positions for FY 2013/14 1 RESOLUTION NO. 13-09 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE BUDGETED POSITIONS FOR FISCAL YEAR 2013/14 AND RESCINDING RESOLUTION NO. 12-27 WHEREAS, the Board of Directors adopted Resolution No. 13-01 on January 24, 2013, the "Yorba Linda Water District Personnel Rules"; and WHEREAS, the “Personnel Rules” direct that the number of Authorized Positions and Salary Ranges are subject to approval by the Board of Directors; and WHEREAS, the Board of Directors adopted Resolution No. 12-27 on November 8, 2012 approving the budgeted positions for the remainder of Fiscal Year 2012/13; and WHEREAS, it is the desire of the Board of Directors to adopt Budgeted Positions for Fiscal Year 2013/14 as set forth in Exhibit “A” attached hereto, and rescind Resolution No. 12-27. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. The number of Budgeted Positions as set forth in Exhibit "A" attached hereto is approved and adopted for Fiscal Year 2013/14 effective July 1, 2013. Section 2. The General Manager is hereby authorized to employ up to the number of employees budgeted and funded in each fiscal year without further approval of the Board of Directors. Section 3. The General Manager is hereby authorized to fill a budgeted position that is vacated while this Resolution is active with a new employee at a lower or equal classification. The General Manager is further authorized to fill a budgeted position with a part time employee or contract staff. Section 4. That Resolution No. 12-27 is hereby rescinded effective July 1, 2013. Resolution No. 13-09 Adopting the Budgeted Positions for FY 2013/14 2 PASSED AND ADOPTED this 13th day of June 2013 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Gary T. Melton, President Yorba Linda Water District ATTEST: Steven R. Conklin, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP BudgetedBudgeted Salary as of Proposed as of Range Position Classification 11/8/2012 Change 7/1/2013 15Customer Service Rep I11 16Meter Reader I22 17Customer Service Rep II11 Accounting Assistant I11 Maintenance Worker I99 Mechanic I00 Engineering Secretary11 Operations Secretary 00 18Meter Reader II22 19Customer Service Rep III 22 Storekeeper00 Operations Assistant11 20Engineering Technician I00 Water Quality Technician l00 Maintenance Dist. Operator II88 21Facilities Maintenance11 Accounting Assistant II11 Mechanic II11 22Water Quality Technician lI11 Information Systems Tech I11 23 Maintenance Dist. Operator III 4 4 Effective July 1, 2013 Exhibit "A" Resolution No. 13-09 Budgeted Positions for 2013/2014 23 Maintenance Dist. Operator III 4 4 Meter Services Lead11 Personnel Technician11 Plant Operator II33 Mechanic III11 24Construction Inspector 11 Engineering Technician II22 Information Systems Tech II1-10 25Human Resources Analyst11 Instrumentation Technician11 26GIS Administrator 11 Project Engineer2-20 Sr. Maintenance Dist. Operator44 Sr. Plant Operator 11 Sr. Construction Inspector11 Sr. Fleet Mechanic11 27Customer Service Supervisor 11 Project Coordinator011 28Management Analyst11 Construction Project Supervisor011 Programmer Analyst011 29Safety and Training Officer00 Sr. Project Engineer00 30Water Maint. Superintendent11 Sr. Accountant11 SCADA Administrator11 Public Information Officer11 IS Administrator11 Safety and Training Coordinator011 31Chief Plant Operator11 Water Quality Engineer11 32Executive Secretary1 1 34Sr. Project Manager11 37Human Resources and Risk Manager11 Finance Manager 11 Operations Manager11 Engineering Manager11 IT Manager11 Salary General Manager11 Set by Board Total 76 1 77 Salary Range Position Classification 1-11Public/Governmental Affairs Intern0.50.5 W Human Resources Clerk00.50.5 X 15Records Management Clerk0.50.5 Y 24 GIS Technician0.50.5 Z Total 1.5 0.5 2 W Intern - one (1) intern position budgeted for FY 2012-2013. The intern will be utilized in the Public/Governmental Affairs division of the Administration Department. X Temporary part-time Human Resources Clerk position. In addition to providing support to HR, this position will provide support to other departments as needed throughout the year. Y Limited-term part-time Records Management Clerk position. This position will provide support to the Executive Secretary with records management. Z GIS Tech is a part-time position. ITEM NO. 8.4 AGENDA REPORT Meeting Date: June 13, 2013 Total Budget:$39.3 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. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 13-10 Adopting the Budget for Fiscal Year 2013/14 and Rescinding Resolution No. 12-14. DISCUSSION: The Letter of Transmittal provides an overall summary of the FY 2013/14 Budget. In general, this budget identifies $39.3 million in total outlay this next fiscal year, including $27.8 million in total expenses, $6.9 million in depreciation and $4.6 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 consideration of adoption by the Board. 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 and a draft version of the budget document on May 23, 2013. ATTACHMENTS: Name:Description:Type: Resolution_13-10.docx Resolution Resolution FY_2013-14_Budget_Document_FINAL1.pdf FY13-14 Budget Document Backup Material Revised_Budget_Pages.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material Resolution No. 13-10 Adopting the Budget for FY 2013/14 1 RESOLUTION NO. 13-10 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 T. Melton, President Yorba Linda Water District Resolution No. 13-10 Adopting the Budget for FY 2013/14 2 ATTEST: Steven R. Conklin, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP Annual Operating Budget Yorba Linda, California for the fiscal year ending June 30, 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 Construction of Yorba Linda Booster Station Project • Completed Hydraulic Model Calibration and Area Master Plan Update • 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 Pipeline 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 $1,4,29,078 for the water and sewer enterprises. These figures include total depreciation expenses (a non-cash expense) in the amount of $5,455,724. Please refer to the Summary of Total Revenue and Expenses (Water & Sewer) for supporting information (pg.59). 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 $18.0 million by June 30, 2013, for a total reduction of $3.7 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 forecast ed 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 the 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 month 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 Yorba Linda Water District FY 2013/14 Budget Page 9 Customer Service • Complete Operations & Efficiency Study Capital Improvement & Replacement Projects • Complete Construction of Yorba Linda Pipeline 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 $2.5 million from the revenues budgeted for FY 2012/13. The major differences are comprised of the following: Water Revenue ($2.5 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 investment 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 placed 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 ($2,000 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 programs. This revenue is expected to remain relatively constant. Expenses & Outlay Total expenses & outlay (excluding capital projects) budgeted for upcoming FY 2013/14 is $35.0 million, a decrease of $1.5 million from the FY 2012/13 budgeted results. This includes depreciation which totals $6.9 million. The following factors summarize the significant changes: Yorba Linda Water District FY 2013/14 Budget Page 10 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 water. MWDOC’s increase is primarily a pass through from an average 5% increase in MWD rates. In addition to the increase from MW D 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 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. 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 Insurance; Life Insurance; an Employee Assistance Program; 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 CalPERS 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 paid the employees’ full 7% statutory CalPERS employee contribution rate to CalPERS. Full-time employees who are already part of the CalPERS system and who were hired after January 26, 2012 participate in CalPERS (2% @ 60) and pay their own 7% statutory CalPERS employee contribution rate to CalPERS. Due to pension reform requirements, full-time employees hired after January 1, 2013 who are new members to CalPERS participate at (2% @ 62) retirement formula and pay the 6.25% member contribution rate to CalPERS. Beginning in FY 2012/13, the District signed a Letter of Compensation and Terms for Employment with all Management and Supervisory/Confidential employees resulting in these employees paying their own portion of the 7% statutory CalPERS employee Yorba Linda Water District FY 2013/14 Budget Page 11 contribution rate to CalPERS retirement by the third year of the three-year term. In FY 2012/13, these employees paid 3% of the 7% statutory CalPERS employee contribution rate to CalPERS with the District paying the remaining 4%. In FY 2013/14, these employees will pay 5% of the 7% statutory CalPERS employee contribution rate, with the District paying the remaining 2%; and in FY 2014/15, these employees will pay the full 7% statutory CalPERS contribution rate, with the District covering only the employer portion of the contribution. The move to employees paying the 7% statutory CalPERS employee contribution rate is offset by a Cost-of-Living Increase (COLA) of 9% over three years, beginning in FY 2012/13. This is the first COLA for employees since FY 2008/09 Beginning on July 1, 2012, the District also matched dollar for dollar the salary earned, not to exceed 2% per payroll period, of the employee’s deposits into a qualified Deferred Compensation Plan for any Management or Supervisory/Confidential employee. Employees accrue 3.077 hours per pay period of vacation with increases in vacation accruals at 5, 10, 15 and 20 years. After 20 years, the maximum vacation accrual is reached at the rate of 6.922 hours per pay period. There are 26 pay periods per year. Sick leave is accrued at the rate of 3.7 hours per pay period. The District observes eleven paid holiday per year. The District also signed a successor Memorandum of Understanding with all Bargaining Unit employees. These employees began paying a portion of the 7% statutory CalPERS employee contribution rate to CalPERS retirement on July 1, 2012. Bargaining Unit employees will pay the full statutory CalPERS employee contribution by the end of FY 2014/15. Reserves and Funding Sources 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 $2.1 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 $2.1 million at the end of the fiscal year. The Sewer Enterprise is budgeted with a FY 2013/14 loss of $794,000, with depreciation of $1.3 million. This also does not include CIP project expenditures, which will require funding from capital reserve funds and operating fund transfers. On a cash basis, this budget will provide $506,000 at the end of the fiscal year. A comprehensive Asset Management Plan (AMP) was completed in FY 2009/10 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 component 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, with 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 adjustments 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 that 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 and 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 District 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 CP 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 responsible 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 Increasing 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, greater 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 unincorporated areas since 1959, the year it was formed to take over the assets and water service responsibilities of the Yorba Linda Water Company, a mutual 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/Title2009-102010-11 2011-122012-13 Proposed 2013-14 ADMINISTRATION Assistant General Manager0.5 0.5 --- Executive Secretary1 1 1 1 1 General Manager1 1 1 1 1 Legislative Affairs Intern *-0.5 0.5 0.5 - Management Analyst1 1 1 1 1 Public Affairs Intern *-0.5 0.5 0.5 0.5 Public Information Specialist1 ---- Public Information Officer-1 1 1 1 Records Management Clerk----0.5 Total Administration 5 5.5 5.0 5.0 5.0 ENGINEERING Assistant General Manager----- Contruction Inspector1 1 1 1 1 Contruction Project Supervisor----1 Engineering Manager1 1 1 1 1 Engineering Secretary1 1 1 1 1 Engineering Technician II3 3 2 2 2 Project Coordinator----1 Project Engineer2 2 2 2 - Project Manager----- Senior Construction Inspector1 1 1 1 1 Senior Project Engineer----- Senior Project Manager1 1 1 1 1 Water Quality Engineer1 1 1 1 1 Water Quality Technician I----- Water Quality Technician II1 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/Title2009-102010-11 2011-122012-13 Proposed 2013-14 FINANCE Accounting Assistant I1 1 1 1 1 Accounting Assistant II1 1 1 1 1 Customer Service Rep I1 1 1 1 1 Customer Service Rep II1 1 1 1 1 Customer Service Rep III2 2 2 2 2 Customer Service Supervisor1 1 1 1 1 Finance Director1 1 --- Finance Manager--1 1 1 Financial Analyst----- Meter Reader I2 2 2 2 2 Meter Reader II2 2 2 2 2 Meter Services Lead-1 1 1 1 Meter Services Representative1 ---- Senior Accountant1 1 1 1 1 Storekeeper1 1 --- Total Finance 15 15 14 14 14 HUMAN RESOURCES Human Resources Analyst1 1 1 1 1 Human Resources Clerk----0.5 Human Resources Manager1 ---- Human Resource & Risk Mananger-1 1 1 1 Human Resource Technician----1 Personnel Technician1 1 1 1 - Safety & Training Coordinator----1 Total Human Resources 3 3 3 3 4.5 Yorba Linda Water District FY 2013/14 Budget Page 35 Personnel Trends by Position, Continued Approved via Resolution 13-09 by the Board of Directors on June 13, 2013 Position/Title2009-102010-11 2011-122012-13 Proposed 2013-14 INFORMATION TECHNOLOGY GIS Administrator-1 1 1 1 GIS Analyst----- GIS Technician1 0.5 0.5 0.5 0.5 Information Systems Administrator1 1 1 1 1 Information Systems Technician I1 1 1 1 1 Information Systems Technician II1 1 1 1 1 Instrumentation Technician1 1 1 1 1 IT Director0.5 0.5 --- IT Manager--1 1 1 SCADA Administrator1 1 1 1 1 Total Information Technology 6.5 7 7.5 7.5 7.5 OPERATIONS Chief Plant Operator1 1 1 1 1 Facilities Maintenance1 1 1 1 1 Instrumentation Technician----- Maintenance Distribution Operator II7 7 8 8 8 Maintenance Distribution Operator III4 4 4 4 4 Maintenance Worker I8 8 9 9 9 Mechanic I----- Mechanic II1 1 1 1 1 Mechanic III1 1 1 1 1 Meter Technician----- Operations Assistant1 1 --- Operations Assistant/Storekeeper--1 1 1 Operations Manager1 1 1 1 1 Operations Secretary----- Plant Operator II3 3 3 3 3 SCADA Administrator----- Sr Maintenance Distribution Operator4 4 4 4 4 Senior Fleet Mechanic1 1 1 1 1 Senior Plant Operator1 1 1 1 1 Water Maintenance Superintendant1 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 Department2009-102010-112011-12 2012-13 Proposed 2013-14 Administration55.5555 Engineering1212111111 Finance1515141414 Human Resources33334.5 Information Technology677.57.57.5 Operations3535373737 DISTRICT TOTALS7677.577.577.579 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 economic 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: x To preserve the financial stability of the District against present and future uncertainties in an ever-changing environment x To maintain the District’s bond ratings in the capital markets and sustaining debt covenant compliance x 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 budgeting 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 appropriations 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 $100,000. 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 accounting 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, makes recommendations to the General Manager if new positions need to be added, revises job descriptions as needed and/or reclassifications of positions when required. The results of this review process are presented to the Personnel-Risk Management Committee for their 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, 2013Manager's MeetingDiscuss Budget Calendar and Process Personnel & Capital budget discussion January 28, 2013Finance-Accounting CommitteeReview the Budget Calendar FEBRUARY February 5, 2013Manager's MeetingPersonnel & Capital budget discussion February 7, 2013Planning-Engineering-Operations CommitteeCapital Improvement Projects budget (v 0.5) February 25, 2013Finance-Accounting CommitteeFinance budget (v 1.0) February 27, 2013Exec-Admin-Organizational CommitteeBoard of Directors and Administration budget (v 1 MARCH March 4, 2013Public Affairs-Communications-Tech CommitteeIT & Public Affairs budget (v 1.0) March 7, 2013Planning-Engineering-Operations CommitteeEngineering and Operations budget (v 1.0) Vehicle Equipment & Capital Outlay budget (v 1.0 March 12, 2013Personnel-Risk Mgmt CommitteeHR budget (v 1.0) March 19, 2013Exec-Admin-Organizational CommitteeAdministration budget (v 2.0) March 25, 2013Finance-Accounting CommitteeDraft Budget (v 1.0) Reserve policy analysis (v 1.0) March 27, 2013Personnel-Risk Mgmt CommitteeLabor 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 CommitteeEngineering and Operations budget (v 2.0) Capital Improvement Projects budget (v 2.0) Vehicle Equipment & Capital Outlay budget (v 2.0 April 9, 2013Personnel-Risk Mgmt CommitteeHR budget (v 3.0), Labor and Benefits (v 2.0) April 18, 2013Board Workshop - Budget Draft budget presented to Board for review and d Reserve policy discussion April 22, 2013Finance-Accounting CommitteeDraft reserve policy MAY May 23, 2013Board of DirectorsDraft Budget (Full Board) JUNE June 13, 2013Board of DirectorsBudget 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. Water 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 25,300 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 13/14) 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 MonthlyCommodity Minimum MonthlyCommodity Minimum AllowanceChargeMonthlyAllowanceChargeMonthly Year(CCF)(CCF)ChargeYear(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 median 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 2035. 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 $800,000 City of Yorba Linda Orange County State of California City of Yorba Linda Median Comparisons Median Family Income Median Home Value 75% 14% 9% 1% 1% City of Yorba Linda Demographics White Hispanic Asian African-American Other Yorba Linda Water District FY 2013/14 Budget Page 53 Ten Largest Customers Most Recent and Ten Years Ago FY 2012/13 Customer NameBusiness Type Annual Revenues % of Actual Revenues 1City of Yorba LindaGovernment1,862,792$ 6.35% 2Placentia Yorba Linda USDGovernment286,151$ 1.05% 3Fairmont Hill Community Assoc.Homeowner's Assoc.117,255$ 0.43% 4Kerrigan Ranch II Community Assoc.Homeowner's Assoc.105,582$ 0.39% 5Yorba Linda VillagesHomeowner's Assoc.100,875$ 0.37% 6Archstone Yorba LindaHomeowner's Assoc.95,474$ 0.35% 7The Hills at Yorba LindaHomeowner's Assoc.93,273$ 0.34% 8Lake Park Mobile Home CommunityHomeowner's Assoc.69,249$ 0.25% 9Mt. San Antonio Home Owners Assoc.Homeowner's Assoc.53,947$ 0.20% 10Woodgate CondominiumsHomeowner's Assoc.51,381$ 0.19% 2,835,978$ 8.91% FY 2001/02 Customer NameBusiness Type Annual Revenues % of Actual Revenues 1City of Yorba LindaGovernment1,915,252$ 14.99% 2Saba PetroleumManufacturer175,921$ 1.38% 3Tac West IncManufacturer98,368$ 0.77% 4St Francis of AssissiPrivate School97,005$ 0.76% 5Shigemi MuranakaNursery Retail78,760$ 0.62% 7Placentia Unified SchoolGovernment31,610$ 0.25% 6Sunset TropicalsNursery Retail30,969$ 0.24% 8CostcoWarehouse Retail30,308$ 0.24% 9Excell CircuitsManufacturer27,840$ 0.22% 10YL Country ClubPrivate Club25,744$ 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 Charges3,274,629$ 3,369,437$ 3,755,191$ 3,708,778$ 4,468,716$ Sewer Charge Revenue104,030$ 205,435$ 198,433$ 198,433$ 200,797$ Sewer Parcel Assessments1,170,549$ 1,580,369$ 1,548,682$ 1,526,725$ 1,550,530$ Other Operating Revenue1,035,545$ 848,238$ 643,737$ 715,784$ 717,749$ Total Operating Revenue24,996,375$ 27,632,716$ 27,409,026$ 29,190,855$ 29,969,760$ Revenue (Non-Operating): Interest274,152$ 277,137$ 170,000$ 114,304$ 87,000$ Property Tax1,258,769$ 1,273,855$ 1,244,320$ 1,249,059$ 1,264,672$ Other Non-Operating Revenue739,062$ 805,654$ 494,437$ 763,994$ 509,150$ Total Non-Operating Revenue2,271,983$ 2,356,646$ 1,908,757$ 2,127,358$ 1,860,822$ Total Revenue27,268,358$ 29,989,362$ 29,317,783$ 31,318,213$ 31,830,583$ Expenses (Operating): Variable Costs11,267,615$ 12,275,853$ 12,953,024$ 14,335,494$ 13,767,658$ Salary Related Expenses7,416,194$ 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 Total6,902,995$ 6,979,088$ 7,648,891$ 6,838,394$ 7,904,873$ Supplies & Services: Communications270,787$ 214,165$ 303,250$ 210,739$ 305,200$ Contractual Services781,552$ 437,875$ 489,321$ 442,147$ 542,840$ Data Processing129,863$ 125,732$ 135,340$ 126,955$ 170,730$ Dues & Memberships29,832$ 58,432$ 62,192$ 74,113$ 72,335$ Fees & Permits63,893$ 154,146$ 151,320$ 169,681$ 167,365$ Board Election35,698$ -$ 51,600$ -$ -$ Insurance221,949$ 228,805$ 279,200$ 282,662$ 299,240$ Materials453,331$ 504,352$ 486,025$ 617,321$ 587,775$ District Activities, Emp Recognition14,811$ 12,972$ 18,600$ 20,139$ 25,150$ Maintenance280,108$ 532,933$ 378,470$ 394,052$ 479,150$ Non-Capital Equipment109,830$ 111,375$ 128,050$ 147,598$ 137,950$ Office Expense28,010$ 46,077$ 40,525$ 44,944$ 46,150$ Professional Services782,507$ 907,959$ 777,460$ 755,714$ 785,210$ Training24,269$ 39,030$ 46,100$ 25,454$ 63,160$ Travel & Conferences21,366$ 20,488$ 44,250$ 25,168$ 52,450$ Uncollectible Accounts20,263$ 22,995$ 39,000$ 25,000$ 25,000$ Utilities91,853$ 72,027$ 85,000$ 85,855$ 90,800$ Vehicle Expenses326,411$ 321,756$ 333,899$ 334,460$ 367,149$ Supplies & Services Sub-Total3,686,333$ 3,811,119$ 3,849,602$ 3,782,002$ 4,217,654$ Total Operating Expenses21,856,943$ 23,066,060$ 24,451,517$ 24,955,890$ 25,890,185$ Expenses (Non-Operating): Interest Expense1,172,503$ 1,626,190$ 2,011,395$ 1,799,416$ 1,815,317$ Other Expense406,575$ 108,984$ 124,210$ 44,206$ 77,400$ Total Non-Operating Expenses1,579,078$ 1,735,174$ 2,135,605$ 1,843,622$ 1,892,717$ Total Expenses23,436,021$ 24,801,234$ 26,587,122$ 26,799,513$ 27,782,902$ Net Income Before Capital Contributions3,832,337$ 5,188,127$ 2,730,661$ 4,518,700$ 4,047,680$ Extraordinary Item-$ (5,000,000)$ -$ -$ -$ Capital Contributions706,319$ 17,214,139$ -$ 350,819$ -$ Net Income Before Depreciation4,538,656$ 17,402,266$ 2,730,661$ 4,869,519$ 4,047,680$ Depreciation5,279,860$ 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)$ (2,850,261)$ 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 Charges3,274,629$ 3,369,437$ 3,755,191$ 3,708,778$ 4,468,716$ Other Operating Revenue981,471$ 753,830$ 585,929$ 667,922$ 681,074$ Total Operating Revenue23,667,722$ 25,752,503$ 25,604,103$ 27,417,835$ 28,181,759$ Revenue (Non-Operating): Interest252,522$ 253,478$ 150,000$ 97,861$ 75,000$ Property Taxes1,258,769$ 1,273,855$ 1,244,320$ 1,249,059$ 1,264,672$ Other Non-Operating Revenue732,638$ 538,468$ 490,262$ 759,610$ 501,200$ Total Non-Operating Revenue2,243,929$ 2,065,801$ 1,884,582$ 2,106,530$ 1,840,872$ Total Revenue25,911,651$ 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 Expenses6,586,253$ 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 Total6,114,939$ 6,125,692$ 6,741,403$ 6,072,773$ 6,987,204$ Supplies & Services Communications246,115$ 199,032$ 280,232$ 197,385$ 283,371$ Contractual Services718,383$ 407,877$ 455,041$ 410,551$ 504,089$ Data Processing118,175$ 116,676$ 125,866$ 117,648$ 158,779$ Dues & Memberships26,899$ 53,650$ 57,609$ 68,934$ 67,021$ Fees & Permits57,982$ 146,445$ 139,165$ 154,414$ 152,224$ Board Election32,485$ -$ 47,988$ -$ -$ Insurance201,974$ 212,136$ 259,656$ 263,323$ 278,293$ Materials432,441$ 483,301$ 451,506$ 600,153$ 568,676$ District Activities, Emp Recognition13,478$ 12,066$ 17,298$ 18,729$ 23,390$ Maintenance237,689$ 398,747$ 307,065$ 279,506$ 357,243$ Non-Capital Equipment87,296$ 94,576$ 109,782$ 131,874$ 121,534$ Office Expense25,485$ 42,245$ 37,702$ 41,798$ 42,920$ Professional Services557,721$ 873,650$ 740,578$ 726,445$ 747,785$ Training20,976$ 34,710$ 41,353$ 19,042$ 56,963$ Travel & Conferences19,417$ 19,194$ 40,833$ 23,763$ 48,389$ Uncollectible Accounts18,919$ 21,833$ 36,270$ 23,250$ 23,250$ Utilities83,603$ 66,904$ 79,050$ 79,169$ 83,700$ Vehicle Expenses261,381$ 278,209$ 282,400$ 283,617$ 321,250$ Supplies & Services Sub-Total3,160,419$ 3,461,250$ 3,509,393$ 3,439,599$ 3,838,875$ Total Operating Expenses20,542,973$ 21,862,795$ 23,203,820$ 23,847,866$ 24,593,737$ Expenses (Non-Operating) Interest on Long Term Debt1,171,439$ 1,625,865$ 2,009,777$ 1,799,416$ 1,815,317$ Other Expense291,195$ 90,485$ 118,210$ 44,206$ 71,400$ Total Non-Operating Expenses1,462,634$ 1,716,350$ 2,127,987$ 1,843,622$ 1,886,717$ Total Expenses22,005,607$ 23,579,145$ 25,331,807$ 25,691,489$ 26,480,454$ Net Income (Loss) Before Capital Contributions3,906,044$ 4,239,159$ 2,156,878$ 3,832,876$ 3,542,177$ Transfers (To)/From-$ (5,085,111)$ -$ -$ -$ Capital Contributions364,564$ 98,241$ -$ 193,770$ -$ Net Income (Loss) Before Depreciation4,270,608$ (747,711)$ 2,156,878$ 4,026,646$ 3,542,177$ Depreciation4,669,579$ 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)$ (2,056,463)$ Debt Service Coverage 1.812.091.492.041.97 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 Revenue1,170,549$ 1,580,369$ 1,548,682$ 1,526,725$ 1,550,530$ Sewer Parcel Assessments104,030$ 205,435$ 198,433$ 198,433$ 200,797$ Other Operating Revenue54,074$ 94,408$ 57,808$ 47,862$ 36,675$ Total Operating Revenue1,328,653$ 1,880,213$ 1,804,923$ 1,773,020$ 1,788,002$ Revenue (Non-Operating): Interest21,630$ 23,659$ 20,000$ 16,443$ 12,000$ Other Non-Operating Revenue6,424$ 267,186$ 4,175$ 4,384$ 7,950$ Total Non-Operating Revenue28,054$ 290,845$ 24,175$ 20,828$ 19,950$ Total Revenue1,356,707$ 2,171,058$ 1,829,098$ 1,793,848$ 1,807,952$ Expenses (Operating): Variable Water Costs (G.W., Import & Power)691$ -$ -$ -$ -$ Salary Related Expenses829,941$ 853,396$ 922,488$ 772,215$ 932,669$ Reduction for Capital Project Labor (41,885)$ -$ (15,000)$ (6,594)$ (15,000)$ Salary Related Expenses Total788,056$ 853,396$ 907,488$ 765,621$ 917,669$ Supplies & Services Communications24,672$ 15,133$ 23,018$ 13,354$ 21,829$ Contractual Services63,169$ 29,998$ 34,280$ 31,596$ 38,751$ Data Processing11,688$ 9,056$ 9,474$ 9,307$ 11,951$ Dues & Memberships2,933$ 4,782$ 4,583$ 5,179$ 5,314$ Fees & Permits5,911$ 7,701$ 12,155$ 15,267$ 15,141$ Board Election3,213$ -$ 3,612$ -$ -$ Insurance19,975$ 16,668$ 19,544$ 19,339$ 20,947$ Materials20,890$ 21,051$ 34,519$ 17,168$ 19,099$ District Activities, Emp Recognition1,333$ 907$ 1,302$ 1,410$ 1,761$ Maintenance42,419$ 134,185$ 71,405$ 114,547$ 121,908$ Non-Capital Equipment22,534$ 16,800$ 18,269$ 15,724$ 16,417$ Office Expense2,525$ 3,832$ 2,823$ 3,146$ 3,231$ Professional Services224,786$ 34,310$ 36,882$ 29,269$ 37,425$ Training3,293$ 4,320$ 4,747$ 6,413$ 6,197$ Travel & Conferences1,949$ 1,294$ 3,418$ 1,405$ 4,062$ Uncollectible Accounts1,344$ 1,162$ 2,730$ 1,750$ 1,750$ Utilities8,250$ 5,123$ 5,950$ 6,687$ 7,100$ Vehicle Expenses65,030$ 43,547$ 51,499$ 50,843$ 45,899$ Supplies & Services Sub-Total525,914$ 349,869$ 340,209$ 342,403$ 378,779$ Total Operating Expenses1,314,661$ 1,203,265$ 1,247,697$ 1,108,024$ 1,296,448$ Expenses (Non-Operating): Interest Expense1,064$ 325$ 1,618$ -$ -$ Other Expense115,380$ 18,499$ 6,000$ -$ 6,000$ Total Non-Operating Expenses116,444$ 18,824$ 7,618$ -$ 6,000$ Total Expenses1,431,105$ 1,222,089$ 1,255,315$ 1,108,024$ 1,302,448$ Net Income (Loss) Before Capital Contributions(74,398)$ 948,968$ 573,783$ 685,824$ 505,504$ Transfer (To)/From-$ 85,111$ -$ -$ -$ Capital Contributions341,755$ 17,115,898$ -$ 157,049$ -$ Net Income Before Depreciation267,357$ 18,149,977$ 573,783$ 842,873$ 505,504$ Depreciation610,281$ 932,700$ 1,270,164$ 1,288,468$ 1,299,301$ Income (Loss)(342,924)$ 17,217,277$ (696,381)$ (445,595)$ (793,797)$ 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 RevenuesFY10/11 ActualFY 11/12 ActualFY 12/13 BudgetFY 12/13 ForecastFY 13/14 Budget Water Revenue 24,417,449$ 27,818,304$ 27,488,685$ 29,524,365$ 30,022,631$ Sewer Revenue1,356,707$ 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 ActualFY 11/12 ActualFY 12/13 BudgetFY 12/13 ForecastFY 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 ActualFY 11/12 ActualFY 12/13 BudgetFY 12/13 ForecastFY 13/14 Budget Water$22,005,607$23,579,145$25,331,807$25,691,489$26,480,454 Sewer$1,431,105$1,222,089$1,255,315$1,108,024$1,302,448 Total Operating Expenses:$23,436,712$24,801,234$26,587,122$26,799,513$27,782,902 **Depreciation Not Included Yorba Linda Water District FY 2013/14 Budget Page 63 Total Expenses by Category Yorba Linda Water District FY 2013/14 Budget Page 64 Variable Water Cost Expenses Note: The Variable Water Costs category is the largest component of the FY 2013/14 Budgeted Operating Costs and includes imported and groundwater purchases, as well as power costs associated with pumping water throughout the District. These costs are listed in the Total Water Revenues and Expenses and Water Revenues and Expenses schedules on pages 55 and 56, respectively. Yorba Linda Water District FY 2013/14 Budget Page 65 Reserves & Funding Sources Restriction Category Balance Ending 6/30/2012 Balance Ending 4/30/2013 Forecasted Balance Ending 6/30/2013 Additions (Deductions) FY 2013/14 Budgeted Balances Ending 6/30/2014 Water (Operating): Operating FundOperating Reserve3,632,086 3,276,917 3,300,000 885,678 4,185,678 Reserve for Debt ServiceDebt Service Payment1,021,981 796,836 1,384,000 1,339,509 2,723,509 Employee LiabilitiesOPEB and Comp Abs.- - - - - Water (Capital) Water EmergencyEmergency Reserve1,000,992 1,009,086 1,000,000 - 1,000,000 Water Capital ProjectsCapital Reserve*11,248,023 7,770,376 7,500,000 (532,910) 6,967,090 COP Bond 2008Capital Reserve- - - - - COP Bond 2008 - ReserveRestricted from Use **2,175,035 2,151,093 2,150,000 - 2,150,000 Water MaintenanceCapital Reserve200,000 200,715 200,000 - 200,000 Sewer (Operating): Operating FundOperating Reserve260,007 292,220 300,000 127,501 427,501 Employee LiabilitiesOPEB and Comp Abs.- - - - - Sewer (Capital) Sewer EmergencyEmergency Reserve999,991 1,008,077 1,000,000 - 1,000,000 Sewer Capital ProjectsCapital Reserve1,206,979 1,123,213 1,174,204 302,903 1,477,107 Total of Funds21,745,094$ 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 how 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 District 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: x Costs passed-through for all variable water cost rate increases x Annual increases on the water commodity rate of 2.5% or 3% x Annexation to OCWD in FY 14/15 x $7 million borrowing through a Line of Credit in FY 12/13 at an interest rate of One Month LIBOR + 0.90%, with renewals every 3 years x Principal repayment deferred to begin in FY 18/19 x A 0.04% annual growth in customer accounts x No change to the sewer rate, but an alignment to address a disparity in our rates in FY 2015/16 x Average interest earnings at 0.5% - 1.0% x 1% growth in property taxes x 2% annual increase in other non-operating revenue other than annexation amortization x 3% - 5% annual increases in variable water costs x 5.0% annual increases in salary related expenses x 3-8% annual increases in supplies and services expenses with the following exceptions: Board Election expense only budgeted every other year Utilities expense budgeted to increase 5% annually x Interest expense equal to those scheduled by the existing bonds and assumed interest rate of 1.5-2.0% for Line of Credit x No change to future budgets for other non-operating expenses x Depreciation increases based on the projected completion of CIP jobs The District is still in the middle of an aggressive CIP spending plan that was created with the issuance of the 2008 Certificates of Participation. The following projections include the completion of that spending plan. Yorba Linda Water District FY 2013/14 Budget Page 68 Five Year Financial Projections Water & Sewer FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Revenue (Operating): Water Revenue (Residential)16,217,590$ 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 Charges4,468,716$ 5,009,840$ 5,844,707$ 6,726,646$ 7,637,940$ Sewer Charge Revenue1,550,530$ 200,797$ 133,702$ 133,702$ 133,702$ Sewer Parcel Assessments200,797$ 36,675$ 36,675$ 36,675$ 36,675$ Other Operating Revenue717,749$ 717,749$ 717,749$ 717,749$ 717,749$ Total Operating Revenue29,969,760$ 29,641,725$ 31,357,236$ 33,301,157$ 35,060,317$ Revenue (Non-Operating): Interest87,000$ 122,644$ 142,349$ 184,171$ 238,796$ Property Tax1,264,672$ 1,277,319$ 1,290,092$ 1,302,993$ 1,316,023$ Other Non-Operating Revenue509,150$ 510,354$ 511,582$ 512,835$ 514,112$ Total Non-Operating Revenue1,860,822$ 1,910,317$ 1,944,023$ 1,999,999$ 2,068,931$ Total Revenue31,830,583$ 31,552,042$ 33,301,259$ 35,301,155$ 37,129,248$ Expenses (Operating): Variable Water Costs13,767,658$ 13,290,809$ 14,052,319$ 14,163,929$ 14,877,435$ Salary Related Expenses7,904,873$ 8,300,116$ 8,715,122$ 9,150,878$ 9,608,422$ Supplies & Services: Communications305,200$ 329,616$ 355,985$ 373,785$ 384,998$ Contractual Services542,840$ 586,267$ 633,169$ 664,827$ 684,772$ Data Processing170,730$ 184,388$ 199,139$ 209,096$ 215,369$ Dues & Memberships72,335$ 78,122$ 84,372$ 88,590$ 91,248$ Fees & Permits167,365$ 180,754$ 195,215$ 204,975$ 211,125$ Board Election-$ 50,000$ -$ 55,000$ -$ Insurance299,240$ 314,202$ 329,912$ 346,408$ 363,728$ Materials587,775$ 634,797$ 685,581$ 719,860$ 741,456$ District Activities, Emp Recognition25,150$ 27,162$ 29,335$ 30,802$ 31,726$ Maintenance479,150$ 517,482$ 558,881$ 586,825$ 604,429$ Non-Capital Equipment137,950$ 148,986$ 160,905$ 168,950$ 174,019$ Office Expense46,150$ 49,842$ 53,829$ 56,521$ 58,216$ Professional Services785,210$ 848,027$ 915,869$ 961,662$ 990,512$ Training63,160$ 68,213$ 73,670$ 77,353$ 79,674$ Travel & Conferences52,450$ 56,646$ 61,178$ 64,237$ 66,164$ Uncollectible Accounts25,000$ 27,000$ 29,160$ 30,618$ 31,537$ Utilities90,800$ 98,064$ 105,909$ 111,205$ 114,541$ Vehicle Equipment367,149$ 396,521$ 428,243$ 449,655$ 463,144$ Supplies & Services Sub-Total4,217,654$ 4,596,089$ 4,900,350$ 5,200,368$ 5,306,657$ Total Operating Expenses25,890,185$ 26,187,014$ 27,667,791$ 28,515,175$ 29,792,514$ Expenses (Non-Operating): Interest Expense1,815,317$ 1,816,865$ 1,816,559$ 1,776,884$ 1,734,309$ Other Expense77,400$ 77,400$ 77,400$ 77,400$ 77,400$ Total Non-Operating Expenses1,892,717$ 1,894,265$ 1,893,959$ 1,854,284$ 1,811,709$ Total Expenses27,782,902$ 28,081,279$ 29,561,750$ 30,369,459$ 31,604,223$ Net Income (Loss) Before Capital Contributions4,047,680$ 3,470,762$ 3,739,509$ 4,931,697$ 5,525,025$ Capital Contributions-$ -$ -$ -$ -$ Net Income (Loss) Before Depreciation4,047,680$ 3,470,762$ 3,739,509$ 4,931,697$ 5,525,025$ Depreciation6,897,941$ 7,605,833$ 7,763,333$ 8,015,833$ 8,156,833$ Income (Loss)(2,850,261)$ (4,135,071)$ (4,023,824)$ (3,084,136)$ (2,631,808)$ 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 Charges4,468,716$ 5,009,840$ 5,844,707$ 6,726,646$ 7,637,940$ Other Operating Revenue681,074$ 694,695$ 708,589$ 722,761$ 737,216$ Total Operating Revenue28,181,759$ 29,381,199$ 31,177,699$ 33,135,793$ 34,909,407$ Revenue (Non-Operating): Interest75,000$ 108,967$ 120,708$ 150,054$ 202,027$ Property Tax1,264,672$ 1,277,319$ 1,290,092$ 1,302,993$ 1,316,023$ Other Non-Operating Revenue501,200$ 502,404$ 503,632$ 504,885$ 506,162$ Total Non-Operating Revenue1,840,872$ 1,888,690$ 1,914,432$ 1,957,932$ 2,024,212$ Total Revenue30,022,631$ 31,269,889$ 33,092,131$ 35,093,725$ 36,933,619$ Expenses (Operating): Variable Water Costs13,767,658$ 13,290,809$ 14,052,319$ 14,163,929$ 14,877,435$ Salary Related Expenses6,987,204$ 7,336,564$ 7,703,392$ 8,088,562$ 8,492,990$ Supplies & Services: Communications283,371$ 306,041$ 330,524$ 347,050$ 357,462$ Contractual Services504,089$ 544,416$ 587,970$ 617,368$ 635,889$ Data Processing158,779$ 171,481$ 185,200$ 194,460$ 200,293$ Dues & Memberships67,021$ 72,382$ 78,173$ 82,081$ 84,544$ Fees & Permits152,224$ 164,402$ 177,554$ 186,432$ 192,025$ Board Election-$ 46,500$ -$ 51,150$ -$ Insurance278,293$ 292,208$ 306,818$ 322,159$ 338,267$ Materials568,676$ 614,170$ 663,303$ 696,469$ 717,363$ District Activities, Emp Recognition23,390$ 25,261$ 27,282$ 28,646$ 29,505$ Maintenance357,243$ 385,822$ 416,688$ 437,522$ 450,648$ Non-Capital Equipment121,534$ 131,256$ 141,757$ 148,845$ 153,310$ Office Expense42,920$ 46,353$ 50,061$ 52,564$ 54,141$ Professional Services747,785$ 807,608$ 872,217$ 915,828$ 943,302$ Training56,963$ 61,520$ 66,442$ 69,764$ 71,857$ Travel & Conferences48,389$ 52,260$ 56,440$ 59,262$ 61,040$ Uncollectible Accounts23,250$ 25,110$ 27,119$ 28,475$ 29,329$ Utilities83,700$ 90,396$ 97,628$ 102,509$ 105,584$ Vehicle Equipment321,250$ 346,950$ 374,706$ 393,441$ 405,245$ Supplies & Services Sub-Total3,838,875$ 4,184,136$ 4,459,880$ 4,734,024$ 4,829,804$ Total Operating Expenses24,593,737$ 24,811,509$ 26,215,592$ 26,986,515$ 28,200,229$ Expenses (Non-Operating): Interest Expense1,815,317$ 1,816,865$ 1,816,559$ 1,776,884$ 1,734,309$ Other Expense71,400$ 71,400$ 71,400$ 71,400$ 71,400$ Total Non-Operating Expenses1,886,717$ 1,888,265$ 1,887,959$ 1,848,284$ 1,805,709$ Total Expenses26,480,454$ 26,699,774$ 28,103,551$ 28,834,799$ 30,005,938$ Net Income (Loss) Before Depreciation3,542,177$ 4,570,115$ 4,988,581$ 6,258,925$ 6,927,682$ Depreciation5,598,640$ 6,261,132$ 6,418,632$ 6,671,132$ 6,812,132$ Income (Loss)(2,056,463)$ (1,691,017)$ (1,430,051)$ (412,207)$ 115,550$ Debt Service Coverage 1.95 2.31 2.45 2.91 3.14 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 Revenue1,550,530$ 1,565,506$ 1,697,143$ 1,701,940$ 1,706,757$ Sewer Parcel Assessments200,797$ 200,797$ 133,702$ 133,702$ 133,702$ Other Operating Revenue36,675$ 36,675$ 36,675$ 36,675$ 36,675$ Total Operating Revenue1,788,002$ 1,802,978$ 1,867,520$ 1,872,317$ 1,877,134$ Revenue (Non-Operating): Interest12,000$ 13,677$ 21,641$ 34,117$ 36,769$ Other Non-Operating Revenue7,950$ 7,950$ 7,950$ 7,950$ 7,950$ Total Non-Operating Revenue19,950$ 21,627$ 29,591$ 42,067$ 44,719$ Total Revenue1,807,952$ 1,824,605$ 1,897,111$ 1,914,384$ 1,921,853$ Expenses (Operating): Salary Related Expenses917,669$ 963,552$ 1,011,730$ 1,062,316$ 1,115,432$ Supplies & Services: Communications21,829$ 23,575$ 25,461$ 26,734$ 27,536$ Contractual Services38,751$ 41,851$ 45,199$ 47,459$ 48,883$ Data Processing11,951$ 12,907$ 13,940$ 14,637$ 15,076$ Dues & Memberships5,314$ 5,740$ 6,199$ 6,509$ 6,704$ Fees & Permits15,141$ 16,352$ 17,661$ 18,544$ 19,100$ Board Election-$ 3,500$ -$ 3,850$ -$ Insurance20,947$ 21,994$ 23,094$ 24,249$ 25,461$ Materials19,099$ 20,627$ 22,277$ 23,391$ 24,093$ District Activities, Emp Recognition1,761$ 1,901$ 2,053$ 2,156$ 2,221$ Maintenance121,908$ 131,660$ 142,193$ 149,303$ 153,782$ Non-Capital Equipment16,417$ 17,730$ 19,148$ 20,106$ 20,709$ Office Expense3,231$ 3,489$ 3,768$ 3,956$ 4,075$ Professional Services37,425$ 40,419$ 43,652$ 45,835$ 47,210$ Training6,197$ 6,692$ 7,228$ 7,589$ 7,817$ Travel & Conferences4,062$ 4,386$ 4,737$ 4,974$ 5,123$ Uncollectible Accounts1,750$ 1,890$ 2,041$ 2,143$ 2,208$ Utilities7,100$ 7,668$ 8,281$ 8,696$ 8,956$ Vehicle Equipment45,899$ 49,571$ 53,537$ 56,213$ 57,900$ Supplies & Services Sub-Total378,779$ 411,953$ 440,470$ 466,343$ 476,853$ Total Operating Expenses1,296,448$ 1,375,506$ 1,452,200$ 1,528,660$ 1,592,285$ Expenses (Non-Operating): Other Expense6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Total Non-Operating Expenses6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Total Expenses1,302,448$ 1,381,506$ 1,458,200$ 1,534,660$ 1,598,285$ Net Income (Loss) Before Capital Contributions505,504$ 443,099$ 438,911$ 379,724$ 323,568$ Capital Contributions-$ -$ -$ -$ -$ Net Income (Loss) Before Depreciation505,504$ 443,099$ 438,911$ 379,724$ 323,568$ Depreciation1,299,301$ 1,344,701$ 1,344,701$ 1,344,701$ 1,344,701$ Income (Loss)(793,797)$ (901,602)$ (905,790)$ (964,977)$ (1,021,133)$ 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 Balance4,185,678$ 4,223,079$ 4,462,183$ 4,593,516$ 4,800,022$ Minimum Balance1,969,731$ 1,987,331$ 2,099,851$ 2,161,655$ 2,258,834$ Maximum Balance4,185,678$ 4,223,079$ 4,462,183$ 4,593,516$ 4,800,022$ Capital Replacement Reserves Ending Balance6,967,090$ 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 Balance200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Minimum Balance200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Emergency Reserves Ending Balance1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Minimum Balance1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Debt Service Reserves Ending Balance2,723,509$ 2,723,509$ 2,721,559$ 2,716,884$ 2,714,309$ Minimum Balance2,723,509$ 2,723,509$ 2,721,559$ 2,716,884$ 2,714,309$ COP Reserves Ending Balance2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ Minimum Balance2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ Employee Benefit Liability Reserves Ending Balance93,000$ 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 Balance17,316,373$ 15,491,373$ 13,136,373$ 13,991,372$ 13,621,372$ Minimum Balance9,953,336$ 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 Balance300,000$ 462,821$ 475,890$ 488,909$ 499,738$ Minimum Balance207,828$ 217,798$ 223,948$ 230,075$ 235,171$ Capital Replacement Reserves Ending Balance1,477,107$ 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 Balance1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Minimum Balance250,000$ 250,000$ 250,000$ 250,000$ 250,000$ Total Sewer Reserves 0$ 0$ (0)$ (0)$ Ending Balance2,777,107$ 2,807,648$ 2,830,318$ 2,797,529$ 2,704,656$ Minimum Balance802,828$ 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 YearWaterSewer EndingFundsFundTotal Fund Balance @ 6/30/2009124,012,838$ 25,406,475$ 149,419,313$ 06/30/10Net Income Before Capital Contributions (1,242,250)(317,140)(1,559,390) Capital Contributions5,973,683733,7156,707,398 Fund Balance @ 6/30/2010128,744,271$ 25,823,050$ 154,567,321$ 06/30/11Net Income Before Capital Contributions (763,535)(684,679)(1,448,214) Capital Contributions364,564 341,755706,319 Prior Period Adjustment- 410,247410,247 Fund Balance @ 6/30/2011128,345,300$ 25,890,373$ 154,235,673$ 06/30/12Net Income Before Capital Contributions (1,119,927)(287,672)(1,407,599) Capital Contributions98,24117,115,89817,214,139 Transfers In (Out)(85,111)85,1110 Extraordinary Item (5,000,000)- (5,000,000) Fund Balance @ 6/30/2012122,238,503$ 42,803,710$ 165,042,213$ 06/30/13Revenue (Operating): Water Sales26,749,913- 26,749,913 Sewer Revenues- 1,725,1581,725,158 Other Operating Revenue667,92247,862715,784 Interest97,86116,443114,304 Property Taxes1,249,059- 1,249,059 Other Non-Operating Revenue759,6104,384763,994 Total Estimated Revenues FY201329,524,3651,793,84831,318,213 Expenses (Operating): Variable Water Costs (G.W., Import & Power)14,335,494 - 14,335,494 Salary Related Expenses6,072,773 765,621 6,838,394 Supplies & Services3,439,599 342,403 3,782,002 Depreciation5,455,724 1,288,468 6,744,192 Interest on Long Term Debt1,799,416 - 1,799,416 Other Expense44,206 - 44,206 Total Estimated Expenses FY201331,147,213 2,396,492 33,543,705 Net Income Before Capital Contributions (1,622,848)(602,644)(2,225,492) Capital Contributions193,770157,049350,819 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$ 06/30/14Revenue (Operating): Water Sales27,500,685- 27,500,685 Sewer Revenues- 1,751,3271,751,327 Other Operating Revenue681,07436,675717,749 Interest75,00012,00087,000 Property Taxes1,264,672- 1,264,672 Other Non-Operating Revenue501,2007,950509,150 Total Estimated Revenues FY201430,022,6311,807,95231,830,583 Expenses (Operating): Variable Water Costs (G.W., Import & Power)13,767,658 - 13,767,658 Salary Related Expenses6,987,204 917,669 7,904,873 Supplies & Services3,838,875 378,779 4,217,654 Depreciation5,598,640 1,299,301 6,897,941 Interest on Long Term Debt1,815,317 - 1,815,317 Other Expense71,400 6,000 77,400 Total Estimated Expenses FY201432,079,094 2,601,749 34,680,844 Net Income Before Capital Contributions (2,056,463)(793,797)(2,850,261) Net Income(Loss) FY2014 (2,056,463)(793,797)(2,850,261) Estimated Fund Balance @ 6/30/2014 118,752,961$ 41,564,317$ 160,317,278$ 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$ YearPrincipalInterestTotal 2014965,000$ 1,747,659$ 2,712,659$ 20151,010,000$ 1,713,509$ 2,723,509$ 20161,045,000$ 1,676,559$ 2,721,559$ 20171,080,000$ 1,636,884$ 2,716,884$ 20181,120,000$ 1,594,309$ 2,714,309$ 20191,170,000$ 1,548,509$ 2,718,509$ 2020-20246,575,000$ 6,979,956$ 13,554,956$ 2025-20286,345,000$ 4,472,856$ 10,817,856$ 2029-20339,630,000$ 3,851,684$ 13,481,684$ 2034-203911,460,000$ 1,719,219$ 13,179,219$ Total40,400,000$ 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 WDSouth Coast WD Serrano WDWalnut 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 2008-17BYL Blvd BPS (Booster Pump Station)2,650,000$ 465,000$ 3,115,000$ 112,924$ 927,076$ 2009-22 #21S & W Well Project (Well No. 21)2,300,000$ (550,000)$ 1,750,000$ 33,337$ 36,663$ 2009-22 #22S & W Well Project (Well No. 22)2,500,000$ -$ 2,500,000$ 2,029$ 2,971$ 2010-02Lakeview Grade Separation80,000$ 520,000$ 600,000$ 82,176$ 217,824$ -Lakeview Landscaping50,000$ -$ 50,000$ -$ -$ 2010-11BFairmont BPS Upgrade5,500,000$ 800,000$ 6,300,000$ 11,103$ 148,897$ 2011-202012 Waterline Project1,170,000$ 475,000$ 1,645,000$ 41,336$ 1,103,664$ 2012-13Yorba Linda High School Park-$ 370,000$ 370,000$ -$ 55,000$ Rehabilitation & Restoration -Meter Replacement Program350,000$ 2,150,000$ 2,500,000$ -$ -$ -Future Pipeline Project2,560,000$ 130,000$ 2,690,000$ -$ -$ NewElk Mountain Booster Surge Tank-$ 100,000$ 100,000$ -$ -$ NewTimber Ridge BPS Rehabilitiation-$ 250,000$ 250,000$ -$ -$ NewRichfield Campus Spoils-$ 150,000$ 150,000$ -$ -$ NewLakeview Booster Piping-$ 100,000$ 100,000$ -$ -$ NewFuture PRS Rehabilitation-$ 1,430,000$ 1,430,000$ -$ -$ -Annual Routine Capital R&R5,830,000$ (4,310,000)$ 1,520,000$ -$ -$ R & R Subtotal 8,740,000$ -$ 8,740,000$ -$ -$ TOTAL22,990,000$ 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 2007-11Well No. 202,300,000$ (300,000)$ 2,000,000$ 1,879,459$ 120,541$ 2008-14Highland BPS Upgrade*6,100,000$ (127,000)$ 5,973,000$ 5,676,955$ 296,045$ 2008-17YL Blvd Pipeline*2,250,000$ -$ 2,250,000$ 375,426$ 1,874,574$ 2009-15Computerized Maint & Mgmt Syst.410,000$ (62,500)$ 347,500$ 325,109$ 22,391$ 2010-11Fairmont Reservoir Site Improvement*500,000$ (130,000)$ 370,000$ 287,676$ 82,324$ 2011-08Press. Reg. Stations Upgrade*1,000,000$ (120,000)$ 880,000$ 110,036$ 769,964$ 2011-16SGreen Crest Dr. Sewer Lift Stn Upgr*140,000$ 30,000$ 170,000$ 97,583$ 72,417$ 2011-23SSewer Facilities GIS Conversion*22,500$ 8,000$ 30,500$ 24,132$ 6,368$ 2012-15Richfield 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)$ -$ -$ -$ TOTAL13,055,500$ (1,010,500)$ 12,045,000$ 8,776,376$ 3,268,624$ GRAND TOTAL36,045,500$ 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 new 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 include 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: $50,000 Timber Ridge Booster Station is undersized and needs additional emergency pumping capacity. Staff will evaluate the least cost method to install a new gas engine enclosed with a new building, or install a new electric generator and possibly upsizing one or more of the existing pumps. Yorba Linda Water District FY 2013/14 Budget Page 84 Page Intentionally Left Blank Yorba Linda Water District FY 2013/14 Budget Page 85 Vehicle Equipment and Capital Outlay (FY 2013/14) Department / ItemAmount Board of Directors None Administration None Engineering Construction F150 4X4 Truck Replacement 26,000$ 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 / ItemAmount 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, intergovernmental 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: x 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 x Emphasized the importance of agency efficiency through the funding of an Organizational and Efficiency Study. x Emphasized the importance of Fiscal Responsibility through the approval of a $7 million Line of Credit, which increased the District’s debt service ratio and potential Cash-on-Hand. Yorba Linda Water District FY 2013/14 Budget Page 92 Board of Directors Budget FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries - Directors90,000$ 90,000$ Fringe Benefits47,835$ 50,877$ Mandatory Benefits - Directors8,559$ 8,400$ Total Salary Related Expenses146,394$ 149,277$ Supplies & Services Communications-$ -$ Contractual Services1,500$ 1,500$ Dues & Memberships5,000$ 5,400$ Board Election Expenses63,500$ -$ Professional Services102,000$ 102,000$ Professional Development4,100$ 4,100$ Travel & Conferences10,200$ 11,400$ Supplies & Services Sub-Total186,300$ 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 1,5001,500 100 200 5,000 100 42,000 60,000 $4,100 4,1004,100 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, control, 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: x Effective Use of Communication Opportunities- Tracking number of media inquiries, requests for materials, request for presentations, etc. 0 10 20 30 40 50 FY 2009/10FY 2010/11FY 2011/12FY 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 x 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 In addition to managing various media inquiries and public information requests and continuously cultivating intergovernmental and community relationships, the Public Affairs Division: x Updated and unified the District’s corporate look, including a redesign of the District’s Newsletter, Website and social media sites. x Enhanced the District’s website for ease of navigation, more options for conducting business with the District on-line and interactive modules for education and increased transparency. x Augmented the District’s Bottled Water Program and expanded participation throughout the District schools by letting customers vote on line for the Label Contest Winner. x Furthered District efforts to raise water awareness by participating in the Children’s Water Education Festival. 1 2 2 1 0 1 2 3 FY 2009/10FY 2010/11FY 2011/12FY 2012/13 All-Hands Meetings Held Goal Actual Yorba Linda Water District FY 2013/14 Budget Page 100 Administration Sections & Responsibilities, Continued x Expanded the District’s Participation in various community events including the annual Placentia Heritage Festival and Yorba Linda Fiesta Days, distributing nearly 45,000 bottles of water. x Managed the District’s water waste reporting program, resulting in an overall conservation level of 9%, from the calendar year 2004-2006 baseline. Yorba Linda Water District FY 2013/14 Budget Page 101 Administration Personnel Summary DepartmentFY 2009/10FY 2010/11 FY 2011/12FY 2012/13 Proposed FY 2013/14 Administration General Manager1.0 1.0 1.0 1.0 1.0 Asst. General Manager0.5 0.5 --- Executive Secretary1.0 1.0 1.0 1.0 1.0 Management Analyst1.0 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 Specialist1.0 ---- Public Information Officer-1.0 1.0 1.0 1.0 1.0 2.0 3.0 3.0 1.5 Department Totals4.5 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 102 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 Benefits87,482$ 94,253$ Mandatory Benefits59,511$ 51,883$ Total Salary Related Expenses617,127$ 639,445$ Supplies & Services Communications207,250$ 192,500$ Contractual Services19,030$ 7,400$ Dues & Memberships44,210$ 55,560$ Fees & Permits225$ 225$ Insurance1,200$ 1,240$ District Activities & Events10,600$ 4,650$ Materials-$ -$ Non-Capital Equipment-$ 3,400$ Office Expense1,600$ 250$ Professional Services472,300$ 505,350$ Professional Development6,250$ 8,350$ Travel & Conferences15,000$ 12,000$ Supplies & Services Sub-Total777,665$ 790,925$ Yorba Linda Water District FY 2013/14 Budget Page 103 Administration Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $250 250250 $500 500500 60 1,000 19,000 30,000 40 1,200 350 2,500 1,200 $3,400 3,4003,400 $250 250250 45,00045,000 125,000125,000 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 104 Administration Budget Section Detail (FY 2013/14) Public Affairs Section Category Total Sub Acct Total Detail Amt 6,0006,000 17,00017,000 20,00020,000 45,000 20,000 3,0003,000 17,400 25,000 5,400 5,400 5,400 5,400 17,25017,250 1,120 780 5,000 $225 225225 500 1,000 600 800 2,600 350 250 $5,000 5,0005,000 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 105 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 106 Page Intentionally Left Blank Yorba Linda Water District FY 2013/14 Budget Page 107 Engineering Yorba Linda Water District FY 2013/14 Budget Page 108 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 109 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 110 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 x 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. x 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. x As part of the District’s responsibility to monitor all water system backflow protection devices, Engineering staff provide oversight for 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 owners, 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 111 Engineering Sections & Responsibilities, Continued Accomplishments Fiscal Year 2012/13 x Construction of Highland Booster Pump Station Project x Construction of Yorba Linda Blvd Pipeline Project x Construction of Green Crest Sewer Lift Station Upgrade x Construction of Well No. 20 Equipping Project x Construction of Pressure Regulating Station Upgrade Project, Phase 1 x Initiated Construction of Yorba Linda Blvd Booster Station x Initiated Construction of 2012 Pipeline Replacement Project, Phase 2 x Completed Northeast Area Planning Study x Completed design of Y. L. High School Park Pipeline Relocation Project x Completed negotiations with OCWD for site of Well 21 x Completed negotiations with OCTA for relocation of Lakeview Ave Pipelines Yorba Linda Water District FY 2013/14 Budget Page 112 Engineering Personnel Summary DepartmentFY 2009/10FY 2010/11 FY 2011/12FY 2012/13 Proposed FY 2013/14 Administration Engineering Manager1.0 1.0 1.0 1.0 1.0 Engineering Secretary1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Planning & Design Engineering Technician II3.0 3.0 2.0 2.0 2.0 Project Coordinator----1.0 Project Engineer1.0 1.0 1.0 1.0 - Sr. Project Manager1.0 1.0 1.0 1.0 1.0 7.0 7.0 6.0 6.0 4.0 Construction Construction Inspector1.0 1.0 1.0 1.0 1.0 Construction Project Supervisor----1.0 Project Engineer1.0 1.0 1.0 1.0 - Sr. Construction Inspector1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Water Quality Water Quality Engineer1.0 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 Totals14.0 14.0 13.0 13.0 11.0 * under filled with Water Quality Technician I prior to FY 2013/14 Yorba Linda Water District FY 2013/14 Budget Page 113 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 Benefits161,654$ 146,044$ Mandatory Benefits125,308$ 120,547$ Total Salary Related Expenses1,189,413$ 1,188,468$ Supplies & Services Communications-$ -$ Contractual Services61,040$ 111,380$ Data Processing-$ -$ Dues & Memberships2,600$ 3,063$ Fees & Permits24,000$ 27,875$ Materials2,000$ 2,000$ Non-Capital Equipment-$ 1,400$ Office Expense2,150$ 2,450$ Professional Services15,000$ 20,000$ Professional Development4,000$ 2,950$ Travel & Conferences3,650$ 3,300$ Supplies & Services Sub-Total114,440$ 174,418$ Yorba Linda Water District FY 2013/14 Budget Page 114 Engineering Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $300 300300 $200 200200 $800 800800 $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 115 Engineering Budget Section Detail (FY2013/14) Planning & Design Section Category Total Sub Acct Total Detail Amt $50,000 50,00050,000 3,8753,875 2,0002,000 500 250 1,0001,000 300300 5,0005,000 10,00010,000 5,0005,000 400 300 $500 500500 $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 & $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 116 Engineering Budget Section Detail (FY 2013/14) Construction Section Category Total Sub Acct Total Detail Amt $220 220220 $350 350350 $1,400 1,4001,400 350350 500500 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 117 Engineering Budget Section Detail (FY 2013/14) Water Quality Section Category Total Sub Acct Total Detail Amt 3,0003,000 350350 5,5905,590 220220 52,00052,000 100 100 1,000 225 238 $22,000 22,00022,000 $2,000 2,0002,000 $300 300300 $850 850850 $2,000 2,0002,000 $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 ABPA (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 118 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 119 Finance Yorba Linda Water District FY 2013/14 Budget Page 120 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 121 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 system, 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 122 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 financial 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 123 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 124 Finance Sections and Responsibilities, Continued Accomplishments Fiscal Year 2011/12 x Successfully implemented a Soft Credit Check and Customer Deposit process for new incoming water customers to the District x Staff received Microsoft Office and Cogsdale training to enhance workflow efficiencies x Successfully activated 3,250 new customer accounts x Evaluated processes and improved efficiencies within daily tasks, particularly in the areas of credit cards processes, new account setup, and payment entry functions x Successfully modified the billing system and water bill templates to reflect new water and meter rates effective July 1, 2012 x Implemented an Online Customer Service Request to encompass Turn-on and Turn- off requests via the YLWD website x Acquired and installed meter test bench Yorba Linda Water District FY 2013/14 Budget Page 125 Finance Sections and Responsibilities, Continued x Converted 2 direct read routes to radio read x Installed Neptune Reading Software/Handheld Device x Successfully read 238,746 meters for water billing purposes x Successfully responded to 1,260 customer service requests for high bills, meter replacements and other services x Submitted and received a Distinguished Budget Presentation Award for FY 2012/13 from the Government Finance Officers Association for a second consecutive year x Successfully implemented a paperless distribution process for biweekly payroll paystubs and annual W-2’s via Doculivery x 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 x Reviewed and revised the District’s Investment Policy and submitted it for California Municipal Treasurers Association’s Certification program x 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 x 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 x Re-affirmed a Water Revenue Bond Rating of AA+ with S&P and AA rating from Fitch with a stable outlook x Established a $7,000,000 Line of Credit with Wells Fargo Bank that is payable in three years at an interest rate equal to One-Month LIBOR + 0.90%, and an annual unused commitment fee of 0.35% Yorba Linda Water District FY 2013/14 Budget Page 126 Finance Personnel Summary DepartmentFY 2009/10FY 2010/11 FY 2011/12FY 2012/13 Proposed FY 2013/14 Administration Finance Director1.0 1.0 --- Finance Manager--1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Accounting Accounting Assistant I1.0 1.0 1.0 1.0 1.0 Accounting Assistant II1.0 1.0 1.0 1.0 1.0 Financial Analyst----- Senior Accountant1.0 1.0 1.0 1.0 1.0 Storekeeper1.0 1.0 --- 4.0 4.0 3.0 3.0 3.0 Customer Service/Billing Customer Service Rep I1.0 1.0 1.0 1.0 1.0 Customer Service Rep II1.0 1.0 1.0 1.0 1.0 Customer Service Rep III2.0 2.0 2.0 2.0 2.0 Customer Service Supervisor1.0 1.0 1.0 1.0 1.0 5.0 5.0 5.0 5.0 5.0 Meter Reading Meter Reader I2.0 2.0 2.0 2.0 2.0 Meter Reader II2.0 2.0 2.0 2.0 2.0 Meter Services Lead-1.0 1.0 1.0 1.0 Meter Services Rep.1.0 ---- 5.0 5.0 5.0 5.0 5.0 Department Totals15.0 15.0 14.0 14.0 14.0 Yorba Linda Water District FY 2013/14 Budget Page 127 Finance Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 850,552$ 900,171$ Fringe Benefits202,789$ 187,123$ Mandatory Benefits117,166$ 110,671$ Total Salary Related Expenses1,173,508$ 1,200,965$ Supplies & Services Communications88,000$ 98,200$ Contractual Services88,161$ 92,640$ Dues & Memberships1,405$ 785$ Fees & Permits95,995$ 101,365$ Insurance-$ -$ Materials12,000$ 25,000$ District Activities & Events700$ 1,050$ Maintenance200$ 300$ Non-Capital Equipment3,950$ 950$ Office Expense16,600$ 14,050$ Professional Services31,160$ 33,360$ Professional Development4,250$ 3,160$ Travel & Conferences4,150$ 5,300$ Uncollectible Accounts39,000$ 25,000$ Supplies & Services Sub-Total385,571$ 401,160$ Yorba Linda Water District FY 2013/14 Budget Page 128 Finance Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $400 400400 110 155 160 $400 400400 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 129 Finance Budget Section Detail (FY 2013/14) Accounting Section Category Total Sub Acct Total Detail Amt $400 400400 500 360 $110 110110 150 435 330 275 30,000 150 25 $400 400400 $300 300300 9,0009,000 3,5003,500 $1,000 1,0001,000 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 130 Finance Budget Section Detail (FY 2013/14) Customer Service/Billing Section Category Total Sub Acct Total Detail Amt 800800 2,0002,000 95,00095,000 200 1,400 6,000 300 50,000 17,300 1,120 1,9001,900 10,00010,000 27,000 43,000 $250 250250 1,300 250 $500 500500 $600 600600 $200 200200 $25,000 25,00025,000 $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 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 131 Finance Budget Section Detail (FY 2013/14) Meter Reading Section Category Total Sub Acct Total Detail Amt 2,4102,410 750750 $250 250250 $25,000 25,00025,000 500 200 250250 500500 160160 $700 700700 $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 132 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 133 Human Resources Yorba Linda Water District FY 2013/14 Budget Page 134 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 135 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 performance evaluation reports. This Section promotes employee development and the sharpening of employees’ skills and knowledge through training programs as well as providing career development opportunities. The Administration Section also 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 disciplinary 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 consequences 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. Yorba Linda Water District FY 2013/14 Budget Page 136 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 137 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 138 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 x Revised the job descriptions for both the Operations Manager and General Manager. x Revised the Personnel Rules to include the implementation of At-Will status for all Management and Supervisory/Confidential employees hired after January 24, 2013. x Developed a draft Employment Contract for the unfilled General Manager position. Yorba Linda Water District FY 2013/14 Budget Page 139 Human Resources Sections and Responsibilities, Continued x Completed negotiations with the Employee’s Association for a three-year Memorandum of Understanding to run from July 1, 2012 through June 30, 2015. x 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 x Arranged for District-wide First AID/CPR/AED Training o Refresher Training conducted o Initial Training conducted x Arranged for the Annual Hearing Testing to be conducted on site. x Coordinated with the Engineering Department to arrange to have an Arc Flash Assessment conducted at four District sites. x 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 140 Human Resources Sections and Responsibilities, Continued x 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 x Coordinated attendance for ten employees at the ACWA/JPIA Training Conference x Coordinated the annual Employee Recognition dinner. x Arranged for all aspects of the annual Benefits Fair and annual flu shots. Yorba Linda Water District FY 2013/14 Budget Page 141 Human Resources Personnel Summary DepartmentFY 2009/10FY 2010/11 FY 2011/12FY 2012/13 Proposed FY 2013/14 Administration Human Resources & Risk Mgr-1.0 1.0 1.0 1.0 Human Resources Manager1.0 ---- Human Resources Analyst1.0 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 Human Resources Technician----1.0 Personnel Technician1.0 1.0 1.0 1.0 - 1.0 1.0 1.0 1.0 1.0 Safety Safety & Training Coordinator----1.0 1.0 Department Totals3.0 3.0 3.0 3.0 4.5 Yorba Linda Water District FY 2013/14 Budget Page 142 Human Resources Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 279,754$ 377,778$ Fringe Benefits55,445$ 76,905$ Mandatory Benefits38,785$ 41,977$ Total Salary Related Expenses373,985$ 496,660$ Supplies & Services Communications4,500$ 14,000$ Contractual Services11,450$ 37,500$ Dues & Memberships5,475$ 5,500$ Insurance278,000$ 298,000$ Materials1,000$ 1,000$ District Activities & Events6,500$ 17,650$ Office Expense700$ 725$ Professional Services114,000$ 68,500$ Professional Development4,000$ 24,900$ Travel & Conferences1,500$ 7,000$ Supplies & Services Sub-Total427,125$ 474,775$ Yorba Linda Water District FY 2013/14 Budget Page 143 Human Resources Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt 2,0002,000 12,00012,000 700 500 900 1,500 3,000 10,000 700700 1,2001,200 600 1,200 400 200 50 3,200 600 500500 3,000 2,000 4,000 650 1,000 2,0002,000 3,0003,000 1,0001,000 200200 100 225 55,00055,000 12,00012,000 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 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 144 Human Resources Budget Section Detail (FY 2013/14) Risk Management Section Category Total Sub Acct Total Detail Amt 15,000 200 $100 100100 8,0008,000 230,000230,000 60,00060,000 $200 200200 $1,500 1,5001,500 1,000 400 $1,000 1,0001,000 $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 & 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 145 Human Resources Budget Section Detail (FY 2013/14) Safety Section Category Total Sub Acct Total Detail Amt $2,000 2,0002,000 500 100 350 $1,000 1,0001,000 $300 300300 $200 200200 $5,000 5,0005,000 $9,450 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 1-7030-0810-00 Professional Development 1-7030-0810-10 OSHA Compliance OSHA Compliance Training Section Total Yorba Linda Water District FY 2013/14 Budget Page 146 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 147 Information Technology Yorba Linda Water District FY 2013/14 Budget Page 148 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 149 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 and 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 providing 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 of 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 data 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 sensors 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 150 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 Management 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 151 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 x Successfully Implemented Computer Maintenance and Management System (CMMS) program for Valves, Sewers and Leaks x Upgraded IS firewalls Yorba Linda Water District FY 2013/14 Budget Page 152 Information Technology Sections & Responsibilities, Continued x Improved internet bandwidth with new contract with Time Warner replacing cable internet with fiber internet solution. x Negotiated new cell phone contract with Verizon Communications replacing Sprint/Nextel x Negotiated a new 3-year lease for Operations copier x Tablets deployed to all District Managers and Executive Secretary x Purchased mobile 80” Interactive Display for Board Training Room x Virtualized 6 District servers x Implemented iSCSi network for Storage Consolidation Project x Completed city sewer GIS conversion x Printed & distributed an Updated Water Atlas Book x Provided GIS Data and support for Northeast Planninng Study & Hydraulic Model x SCADA Segmentation Security project completed x Replaced and reprogram Hidden Hills PLC x Replaced and reprogram Spring View PLC x Upgraded Wonderware SCADA software to latest release & improved password security x Wireless system installed at Elk Mt. for redundant communications Yorba Linda Water District FY 2013/14 Budget Page 153 Information Technology Personnel Summary DepartmentFY 2009/10FY 2010/11 FY 2011/12 Proposed FY 2012/13 Proposed FY 2013/14 Administration Assistant General Manager0.50.5--- 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 I1.0 1.0 1.0 1.0 1.0 Information Systems Tech II1.0 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 Technician1.0 0.5 0.5 0.5 0.5 1.0 1.5 1.5 1.5 1.5 SCADA Instrumentation Technician1.0 1.0 1.0 1.0 1.0 SCADA Administrator1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Department Totals6.5 7.0 7.5 7.5 7.5 Budgeted Positions Yorba Linda Water District FY 2013/14 Budget Page 154 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 Benefits114,468$ 100,390$ Mandatory Benefits85,016$ 76,809$ Total Salary Related Expenses828,066$ 813,578$ Supplies & Services Communications-$ -$ Contractual Services137,540$ 138,520$ Data Processing 135,340$ 170,730$ Dues & Memberships1,327$ 1,327$ Materials14,275$ 11,275$ District Activities & Events300$ 300$ Maintenance76,370$ 84,950$ Non-Capital Equipment67,500$ 98,100$ Office Expense10,475$ 19,175$ Professional Services43,000$ 56,000$ Professional Development7,500$ 8,800$ Travel & Conferences6,000$ 9,300$ Supplies & Services Sub-Total499,627$ 598,477$ Yorba Linda Water District FY 2013/14 Budget Page 155 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 156 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 21,50021,500 15,00015,000 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 400400 100100 400 100 200 400 600 200 $300 3003001-6020-0715-00 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 1-6020-0620-47 Cell Phone Supplies 450 Batteries Holsters & Covers Chargers Kiwi Cat Tools Lenel Onguard Software Support Agreement Renewal Netmotion Mobility XE Premium Software Trend 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 1-6020-0600-32 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 157 IT Budget Section Detail (FY 2013/14) Information Systems Section, Continued Category Total Sub Acct Total Detail Amt 1,0001,000 2,0002,000 400 200 400 400 1,5001,500 300 1,600 2,000 10,000 6,000 600 4,800 6,400 10,000 800 1,000 200 2,200 200 800800 500 1,000 1,500 1,000 300300 100100 125 9,000 50 200 200 400 200 2,0002,000 3,500 18,000 10,000 1,0001,000 $2,500 2,5002,500 400 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 158 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 5,5005,500 8,5008,500 100100 $2,000 2,0002,000 200 500 $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 159 IT Budget Section Detail (FY 2013/14) SCADA Section Category Total Sub Acct Total Detail Amt 1,500 1,500 2,500 23,00023,000 1,6001,600 26,000 6,500 230 250 2,2002,200 1,8001,800 375 3,000 1,500 2,0002,000 18,00018,000 1,8001,800 4,6504,650 8,5008,500 11,000 3,100 1,500 500 800 10,00010,000 1,8001,800 4,5004,500 4,0004,000 5,0005,000 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, & 1-6040-0640-00 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 160 IT Budget Section Detail (FY 2013/14) SCADA Section, Continued Category Total Sub Acct Total Detail Amt 4,5004,500 2,0002,000 8,0008,000 1,9501,950 1,5501,550 6,5006,500 5,0005,000 8,0008,000 5,8005,800 $300 300300 10,500 11,000 2,400 1,400 500 $1,400 1,4001,400 $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 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 161 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 162 Page Intentionally Left Blank Yorba Linda Water District FY 2013/14 Budget Page 163 Operations Yorba Linda Water District FY 2013/14 Budget Page 164 Department Organization Chart Yorba Linda Water District FY 2013/14 Budget Page 165 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 distribut ion 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: x 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. x 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 is 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 166 Operations Sections & Responsibilities, Continued x 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: x 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. x 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. x 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. x 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. x 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 167 Operations Sections & Responsibilities, Continued x 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: x 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. x 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. x 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. x Approximately twenty four line repairs were completed in addition to eight manholes being rehabilitated during fiscal year 2011-2012. x 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 trailer mounted emergency generator. Yorba Linda Water District FY 2013/14 Budget Page 168 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 sufficient 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 threats 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: x 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: x 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: x 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 169 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. x 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. x Electrical Repairs - all repairs to building lighting both inside and out in addition to any electrical problems at other District sites. x Janitorial Maintenance - interface and oversight in assurance that contract terms are being met. x AC and Heating - oversight for service scheduled quarterly at the Mira Loma facility, including the warehouse and operations buildings. x Fire sprinkler and equipment inspection required per OCFA’s annual reporting requirements. x Responsible for the hiring of contractors to provide road and compound type repairs, and miscellaneous fence and building repairs. x 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. x 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 170 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 171 Operations Sections & Responsibilities, Continued Yorba Linda Water District FY 2013/14 Budget Page 172 Operations Personnel Summary DepartmentFY 2009/10FY 2010/11 FY 2011/12FY 2012/13 Proposed FY 2013/14 Administration Operations Assistant1.0 1.0 --- Operations Assistant/Storekeeper--1.0 1.0 1.0 Operations Manager1.0 1.0 1.0 1.0 1.0 Water Maintenance Superintendent1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Water Operations & Maintenance Maint. Distribution Operator II5.0 5.0 5.0 7.0 7.0 Maint. Distribution Operator III2.0 3.0 3.0 3.0 3.0 Maintenance Worker I6.0 6.0 6.0 5.0 5.0 Sr. Maint. Distribution Operator3.0 3.0 3.0 3.0 3.0 16.0 17.0 17.0 18.0 18.0 Sewer Operations & Maintenance Maint. Distribution Operator II2.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator III1.0 1.0 1.0 1.0 1.0 Maintenance Worker I1.0 2.0 5.0 4.0 4.0 Sr. Maint. Distribution Operator1.0 1.0 1.0 1.0 1.0 5.0 5.0 8.0 7.0 7.0 Water Production Chief Plant Operator1.0 1.0 1.0 1.0 1.0 Senior Plant Operator1.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator II-1.0 --- Maint. Distribution Operator III1.0 ---- Maintenance Worker I1.0 ---- Plant Operator II3.0 3.0 3.0 3.0 3.0 7.0 6.0 5.0 5.0 5.0 Mechanical Services Mechanic II1.0 1.0 1.0 1.0 1.0 Mechanic III1.0 1.0 1.0 1.0 1.0 Senior Fleet Mechanic1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Facilities Maintenance Facilities Maintenance1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Department Totals35.0 35.0 37.0 37.0 37.0 Yorba Linda Water District FY 2013/14 Budget Page 173 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 Benefits568,404$ 556,290$ Mandatory Benefits401,181$ 385,973$ Total Salary Related Expenses3,648,362$ 3,700,332$ Supplies & Services Communications3,500$ 500$ Contractual Services170,600$ 153,900$ Dues & Memberships2,175$ 700$ Fees & Permits31,100$ 37,900$ Materials460,750$ 548,500$ District Activities & Events500$ 1,500$ Maintenance305,400$ 393,900$ Non-Capital Equipment39,100$ 34,100$ Office Expense9,000$ 9,500$ Professional Services10,000$ -$ Professional Development16,000$ 10,900$ Travel & Conferences4,900$ 4,150$ Utilities 85,000$ 90,800$ Vehicle Expense333,900$ 367,150$ Supplies & Services Sub-Total1,471,925$ 1,653,500$ Yorba Linda Water District FY 2013/14 Budget Page 174 Operations Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $9,000 9,0009,000 $1,500 1,5001,500 3,5003,500 400400 1,5001,500 100100 4,0004,000 500500 300300 100100 300300 500500 $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 175 Operation Budget Section Detail (FY 2013/14) Water Operation & Maintenance Section Category Total Sub Acct Total Detail Amt $9,700 9,7009,700 2,0002,000 12,00012,000 5,5005,500 27,50027,500 15,00015,000 3,0003,000 60,00060,000 75,00075,000 140,000140,000 10,00010,000 7,0007,000 8,0008,000 1,5001,500 3,0003,000 85,00085,000 14,50014,500 3,5003,500 3,0003,000 5,0005,000 165,000165,000 35,00035,000 700700 500500 8,0008,000 1,0001,000 4,5004,500 1,0001,000 300300 200200 500500 $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 176 Operation Budget Section Detail (FY 2013/14) Sewer Operation & Maintenance Section Category Total Sub Acct Total Detail Amt $500 500500 $1,900 1,9001,900 3,0003,000 1,9001,900 1,0001,000 $300 300300 1,0001,000 15,00015,000 60,00060,000 8,0008,000 30,00030,000 5,0005,000 10,00010,000 700700 8,0008,000 1,0001,000 2,2002,200 300300 200200 100100 300300 $800 800800 25,00025,000 1,0001,000 8,0008,000 14,00014,000 $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 OPS - Sewer Vehicle Maint 2-5030-0890-47 Vehicle Expense: Sewer Equipment 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 177 Operation Budget Section Detail (FY 2013/14) Water Production Section Category Total Sub Acct Total Detail Amt 2,5002,500 800800 350 50 4,0004,000 10,00010,000 2,5002,500 30,00030,000 5,0005,000 500500 4,5004,500 5,0005,000 10,00010,000 2,0002,000 6,0006,000 5,0005,000 1,0001,000 2,5002,500 1,5001,500 600600 200200 200200 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 178 Operation Budget Section Detail (FY 2013/14) Mechanical Services Section Category Total Sub Acct Total Detail Amt $1,500 1,5001,500 8,0008,000 350350 100100 1,5001,500 2,5002,500 1,5001,500 500500 5,000 5,000 $250 250250 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 179 Operation Budget Section Detail (FY 2012/13) Mechanical Services Section, Continued Category Total Sub Acct Total Detail Amt 500500 750750 13,20013,200 4,0004,000 9,3009,300 3,0003,000 50,00050,000 5,0005,000 63,00063,000 24,00024,000 3,0003,000 500500 13,00013,000 2,0002,000 3,8003,800 1,0001,000 1,9001,900 1,0001,000 1,0001,000 2,7002,700 105,000105,000 9,0009,000 2,5002,500 $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 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 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 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 180 Operation Budget Section Detail (FY 2013/14) Facilities Maintenance Section Category Total Sub Acct Total Detail Amt 25,00025,000 5,5005,500 60,00060,000 40,00040,000 3,5003,500 3,5003,500 1,0501,050 1,5001,500 2,0002,000 4,5004,500 3,0003,000 1,0001,000 500500 15,00015,000 5,0005,000 2,0002,000 10,00010,000 5,0005,000 5,0005,000 100100 2,0002,000 $90,000 90,00090,000 $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 Electrical Repair Work 1-5060-0730-35 Fire Extinguisher 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 181 Supplies & Services Summary by Department Section Yorba Linda Water District FY 2013/14 Budget Page 182 Appendix Yorba Linda Water District FY 2013/14 Budget Page 183 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 184 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 185 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 186 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 187 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, analyzing 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 188 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 governments 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 other 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 189 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 190 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 water and non-potable water to its customers. Yorba Linda Water District FY 2013/14 Budget Page 191 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: x Operating Budget Policy x Revenues and Expenditures Policy x Financial Reserves Policy x Investment Policy Yorba Linda Water District FY 2013/14 Budget Page 192 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 process? 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: x The budget should support the District’s mission statement, strategic goals, and critical priorities x There should be no deferment of critical maintenance x The budget should be regarded as a business operating plan x 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 x 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 expenditures 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 and 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 193 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 Manager 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 194 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 goa ls. 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: x User charges are established utilizing a generally accepted cost recovery methodology that is consistent and legally defendable using the following approaches: revenue requirement analysis, cost of service analysis, and rate design analysis. x Rate designs shall be reflective of the District’s Board of Directors’ rate setting objectives. x 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. x 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 195 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 reason, 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 the 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: x Maintain consistency of allocation of resources for programs to carry out the District’s mission and goals to its customers x Within the resources available each fiscal year, the District shall maintain capital 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: x Utilize technology and productivity advancements that will help reduce or avoid increasing personnel costs, when practicable. x 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 196 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 197 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 customers 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. Yorba Linda Water District FY 2013/14 Budget Page 198 Financial Policies, Continued 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 and $345,000 for the sewer fund, less money set aside for the Maintenance Reserve. Funding with available funds based on the District’s operations shall be allocated quarterly. 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 Debt Service Reserve A. Definition and Purpose – Established to provide funding for semi-annually scheduled debt service payments. B. Target Level – The District’s highest annual debt service payment – currently $2,723,509. C. Events or Conditions Prompting the Use of the Debt Service Reserve – Semi- annual debt service payments will be made out of this fund, with funding on the water rate replenishing the fund annually. Yorba Linda Water District FY 2013/14 Budget Page 199 Financial Policies, Continued 1.5 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. As of November 2, 2011, an actuary determined that the District’s Other Post Employment Benefit (OPEB) liability was $1,433,197. When combined with a liability on the District’s books for vacation, compensatory and sick time of $1,063,572 at June 30, 2012, the target is projected to be approximately $2,500,000 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. 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 200 Financial Policies, Continued C. SCOPE: This policy will assist the Board of Directors in establishing: 4. Target levels for reserve funds; 5. Requirements for the use of reserve funds; and 6. 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 201 Financial Policies, Continued Investment Policy SECTION 1: GENERAL 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 investment 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 enhance 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 the 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 establish procedures for the management of investment activities, including the activities of staff consistent with this Policy. Yorba Linda Water District FY 2013/14 Budget Page 202 Financial Policies, Continued 3.2 The Treasurer may retain the services of an outside investment advisor or manager as approved by the Board to assist with the District’s investment program. Any investment advisor selected shall make all investment decisions and transactions in strict accordance with State law, and this Policy. 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.” Yorba Linda Water District FY 2013/14 Budget Page 203 Financial Policies, Continued 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. 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 bound aries, 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; Yorba Linda Water District FY 2013/14 Budget Page 204 Financial Policies, Continued 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. 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 205 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 206 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 Treasurer 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 investigation 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 often 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 207 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 receipts. 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 208 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. REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting REVISED Backup Material Distributed Less Than 72 Hours Prior to the Meeting ITEM NO. 8.5 AGENDA REPORT Meeting Date: June 13, 2013 To:Board of Directors From:Steve Conklin, Acting General Manager Presented By:Steve Conklin, Acting General Manager Dept:Finance Reviewed by Legal:Yes Prepared By:Ariel Bacani, Engineering Technician II Subject:Fats, Oils and Grease (FOG) Discharge Permit Fees SUMMARY: In 2004, the District adopted Ordinance No. 04-01, regulating Food Service Establishments (FSE) fats, oils and grease (FOG) discharge into the sewer system. The State Water Resources Control Board Order No. 2006-0003 later mandated the District to enforce this regulation. In response, the District required all FSE within its sewer jurisdiction to comply with the FOG Program and apply for an annual FOG Wastewater Discharge Permit. On June 12, 2008, the Board of Directors passed and adopted Resolution No. 08-05, establishing FOG Fees. Those fees were recently reviewed and staff recommends updating the fee amounts. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 13-11, Adopting Fats, Oils and Grease Fees. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this matter at its meeting held May 31, 2013 and supports staff's recommendation. DISCUSSION: Staff reviewed costs associated with maintaining the FOG Program including printing, labor and equipment. Staff also compared costs with neighboring agencies. After administering the FOG Program in-house for several years, staff has improved efficiencies by reducing counsel review and eliminating Orange County Health Care Agency (OCHCA) FOG review, resulting in a significant reduction in staff costs to administer the program and perform inspections. Based on its findings, staff recommends the elimination of the OCHCA inspection services and the reduction of the following FOG Fees: Initial Permit: Reduce fee from $490.00 to $145.00 This initial permit fee includes the costs of District staff time to develop and implement the FOG Control Program, including administrative cost, initial site inspections and material reproduction. Annual/Renewal FOG Permit: Reduce fee from $290.00 to $145.00 This permit fee is based on District cost to administer the program and conduct annual inspections. Non-Compliance Fee: Reduce fee from $290.00 to $200.00 This fee is assessed in the event the FSE fails to comply with the District FOG Ordinance. Mitigation Fee: Reduce fee from $1,650.00 to $1,500.00 (Minimum) This fee is the minimum cost associated with District personnel responding to a sanitary sewer problem and mitigating the effects of fats, oils and grease contributed or caused by a failure of a FSE to comply with the FOG program. If mitigation costs exceed the minimum stated fee, all additional costs will be invoiced based on the District's current time and material rates. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors adopted Resolution No. 08-05 in June 12, 2008, establishing the current FOG fees. ATTACHMENTS: Name:Description:Type: Resolution_No_13-11_-_Adopting_FOG_Fees.doc Resolution No. 13-11 - Adopting FOG Fees Resolution Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 RC/PH 4-0 Roll Call GM recused himself from voting on this matter. Resolution No. 13-11 Adopting Fats, Oils and Grease Fees 1 RESOLUTION NO. 13-11 RESOLUTION OF THE BOARD OF DIRECTORS OF YORBA LINDA WATER DISTRICT ADOPTING FATS, OILS AND GREASE FEES WHEREAS, in 2002, the Santa Ana Regional Water Quality Control Board enacted Rule R8-2002-0014 requiring all sewage agencies to adopt the requirements of a new Waste Water Discharge Requirement (WDR); and, WHEREAS, in 2006, the Santa Ana Regional Water Quality Control Board Rule R8- 2002-0014 was rescinded and a new statewide permit adopted based on R8-2002-0014; and, WHEREAS, the WDR and statewide permit require many municipalities, including the Yorba Linda Water District, to increase the level of maintenance, operations, and capital improvement repairs to their sewer systems and to have in place a fats, oils, and grease control program; and, WHEREAS, on July 22, 2004 the Board of Directors adopted Ordinance 04-01, creating a Fats, Oils and Grease Control Program for Food Service Establishments (FSE) in the City of Yorba Linda and portions of the cities of Anaheim, Brea and Placentia requiring a permit for sewer discharges, which could contain fats, oils, and grease, and imposing requirements for monitoring of and elimination of fats, oils, and grease from sewer discharges for such establishments; and, WHEREAS, Ordinance 04-01 authorizes the adoption by resolution of a Fats, Oils and Grease Wastewater Discharge Permit Fee and Grease Disposal Mitigation Fee to cover the costs of increased maintenance and administration of the sewer system as a result of the Food Service Establishments’ inability to remove Fats, Oils, and Greases from its wastewater discharge, to require Food Service Establishments to implement other programs that are considered appropriate to protect the District’s sanitary sewer system and states that the fees collected pursuant to this Resolution shall be used to finance costs necessitated by the services provided by the District. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Yorba Linda Water District to adopt the Fats, Oils, and Grease Fees as follows: Section 1: The fees adopted for the Yorba Linda Water District Fats, Oils, and Grease Permit Program are as follows: a. Initial Permit and Application Fee $145.00 each FSE b. Annual/Renewal FOG Permit $145.00 annual/FSE c. Non-Compliance Fee $200.00 each occurrence Resolution No. 13-11 Adopting Fats, Oils and Grease Fees 2 d. Mitigation Fee $1,500.00 minimum cost* * If mitigation costs exceed the minimum stated fee, all additional costs will be invoiced based on the District’s current salaries, rates, benefits, and equipment in effect at the time. Section 2: The fees adopted herein shall take effect on July 1, 2013 and Resolution No. 08-05 is hereby rescinded on July 1, 2013. PASSED AND ADOPTED this 13th day of June 2013 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Gary Melton, President Yorba Linda Water District ATTEST: Steven R. Conklin, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP ITEM NO. 8.6 AGENDA REPORT Meeting Date: June 13, 2013 Budgeted:Yes Total Budget:$5,000 for FY 2013/14 To:Board of Directors Cost Estimate:$5,000 for FY 2013/15 Funding Source:Water Operating Fund From:Steve Conklin, Acting General Manager Account No:1-2020-0600-00 Presented By:Steve Conklin, Acting General Manager Dept:Administration Reviewed by Legal:Yes Prepared By:Cindy Botts, Management Analyst CEQA Compliance:N/A Subject:MWDOC SmartTimer Agreement for FY 2013/15 SUMMARY: The Municipal Water District of Orange County (MWDOC) administers a two-year "smart" irrigation controller rebate program that YLWD has participated in since 2004. The option for renewal of this rebate program is available for Fiscal Years 2013/2015. STAFF RECOMMENDATION: That the Board of Directors authorize the Acting General Manager to execute the renewal of MWDOC's SmartTimer Rebate Agreement for FY 2013/15. DISCUSSION: YLWD's FY 2013/14 budget reflects a total of $5,000 for various rebate programs through MWDOC. It is estimated that no more than $2,500 will be needed, per year, to fully fund all SmartTimer rebate requests from customers. The previous two year term (FY 2011/13) $10,000 was budgeted with less than $3,000 actually being used for the two year period. As the $5,000 is a not-to-exceed amount, any funds not rebated will not be required to be spent. STRATEGIC PLAN: CP 2-A: Provide Financial Incentives and Rebates for Water Use Efficiency ATTACHMENTS: Name:Description:Type: Yorba_Linda_Final_Agreement_(5-30-13).pdf SmarTimer Agreement FY 13/15 Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 RK/RC 5-0 1 Agreement Between the Yorba Linda Water District and the Municipal Water District of Orange County for Participation in the Weather Based Irrigation Timer (Smart Timer) Rebate Program for Single-Family Residential and Commercial Properties This Agreement is made by and between the Municipal Water District of Orange County (“MWDOC”), and the Yorba Linda Water District (“Participating Agency”), for participation and co- funding of a Smart Timer Rebate Program for Single Family Residential and Commercial Properties (“Program”) to be offered in Participating Agency’s service area. RECITALS WHEREAS, MWDOC has developed and arranged for Grant funding through other sources for a Program to provide enhanced rebates, beyond Metropolitan Water District of Southern California’s (“Metropolitan”) basic rebate funding levels to owners of single family residences and commercial properties to encourage them to retrofit existing operable irrigation timers with devices that control the amount of water used based upon weather conditions (“Smart Timers”); and WHEREAS, Program funding is sufficient to provide rebates for up to Two Thousand, Five Hundred (2,500) Smart Timers installed by qualified applicants in the Program area. Participating Agency is eligible to participate in the Program and agrees to provide funding at the amount per residential Smart Timer specified in Table 1 below and, if Participation Agency so elects, at the amount per commercial Smart Timer station specified in Table 2 below, up to the “Not to Exceed Funding Limits” set forth in Tables 1 and 2; and WHEREAS, MWDOC through its contract with both Metropolitan and its installation inspection and verifications consultant will conduct up to 100% installation verification of commercial and residential Smart Timer installations; and WHEREAS, the Program’s objectives are to achieve savings in water consumption, reduce water runoff to storm drains and natural water bodies, and promote the goals of the Best Management Practices. AGREEMENT NOW, AND THEREFORE, it is agreed by MWDOC and Participating Agency as follows: 1. Residential Properties: MWDOC will contract for rebate services with Metropolitan (“Rebate Contractor”) to access their “SoCal Water Smart” residential rebate program for Smart Timers. A prospective residential applicant who wants to participate in the Program must visit the Program’s website at www.socalwatersmart.com to fill out an online rebate application. Upon completion of the online application, the Rebate Contractor will provide the prospective applicant, via email, with an online application confirmation notice and instructions for mailing in, within 60 days of the application confirmation notice, the Smart Timer purchase receipt indicating brand, model, price, and any installation costs, and a copy a recent water bill for the site where the Smart Timer will be installed. The Rebate Contractor will check each returned application for completeness and determine the eligibility of the applicant to participate in the Program. Through the application process, all residential Smart Timer applicants must agree to on-site installation verification as a condition for participation in the Program. Not all residential Smart Timer applicants will be subject to on-site installation verification. MWDOC will be responsible 2 for determining whether a particular installation will be inspected and the manner of verification required, if any. MWDOC will work with the Rebate Contractor to facilitate final rebate processing and issuance of the rebate check 2. Commercial Properties: MWDOC will contract for rebate services with Rebate Contractor to access its “SoCal Water Smart” commercial rebate program for commercial Smart Timers. A prospective commercial applicant who wants to participate in the commercial Smart Timer Rebate Program must contact the Rebate Contractor at www.socalwatersmart.com to request a rebate reservation number prior to the purchase and installation of a Program eligible Smart Timer. If approved through the online reservation process, applicant will receive, via email, a reservation number and confirmation notice. Note that securing a reservation is a threshold requirement, and any attempt by a prospective commercial applicant to purchase a Smart Timer first and then secure a reservation will be rejected by the Rebate Contractor. The reservation confirmation notice will advise the applicant to purchase and install the commercial Smart Timer and, upon completion of installation, to return to the www.socalwatersmart.com website to complete a rebate application. Upon completion of the rebate application, a rebate confirmation e-mail will be sent to the applicant, with instructions to submit, via fax, e-mail or regular mail, a copy of a current water bill and the purchase receipt for the installed commercial Smart Timer. Through the application process, all commercial Smart Timer applicants must agree to on-site installation verification as a condition for participation in the Program. Not all commercial Smart Timer applicants will be subject to on-site installation verification. MWDOC will be responsible for determining whether a particular installation will be inspected and the manner of verification required, if any. MWDOC will work with the Rebate Contractor to facilitate final rebate processing and issuance of the rebate check. 3. MWDOC’s Obligations: MWDOC will be responsible for designing the Program, setting the rebate level paid to a qualified applicant, providing all necessary staffing, materials, and administration to manage and implement the Program, and preparing reports on the Program’s results through contractors and its own staff. These services will include: • Providing marketing and informational material for the Program, except as noted in the Participating Agency Obligations section of this Agreement; • Working with Metropolitan and its Rebate Contractor to establish eligibility requirements for prospective Program applicants; • Providing a website, a toll-free telephone number, and printed informational materials for prospective applicants to learn about the Program and the steps to participate; • Informing applicants about the eligible Smart Timer technologies and where they may purchase an appropriate Smart Timer. (Purchase, installation and functioning of Smart Timers will be the responsibility of the property owner, and applicants will be required to waive and release any claims against MWDOC, Metropolitan, and the Participating Agency in order to receive a rebate); • Facilitating quality control, verification of installation of Smart Timers, and collection of data; • Using Metropolitan’s minimum per residential Smart Timer funding, MWDOC’s acquired Grant Funds, and Participating Agencies required per residential Smart Timer funding as stated in Table 1 below, setting the residential per Smart Timer enhanced rebate levels paid to applicants. 3 • If the Participating Agency wishes to add additional funds for commercial Smart Timers, as stated in Table 2 herein, above the minimum amount funded by Metropolitan to increase the commercial rebate level, MWDOC will facilitate the Participating Agency’s additional funding with the Program’s Rebate Contractor; • Facilitating payment, through the Rebate Contractor, to both residential and commercial rebate participants who have completed the participation requirements as provided herein to the satisfaction of MWDOC; • Developing a database of information regarding Program participation, including the types of Smart Timers for which rebates are given; • Providing monthly written reports of Program activity to Participating Agency; • Invoicing Participating Agency, on a monthly basis, for the funding amount per residential Smart Timer as stated in Table 1, up to the “Not to Exceed” amount set forth in this Agreement. Invoicing will include the number of devices, the location, and the funding provided; • If Participating Agency elects to increase the commercial Smart timer rebate at the levels shown in Table 2, MWDOC will invoice Participating Agency for those associated costs up to the “Not to Exceed” amount set forth in this Agreement; • When on-site Smart Timer installation verification inspection is conducted by MWDOC’s verification consultant, MWDOC will direct the verification consultant to facilitate the issuance of inspection notifications and on-site verifications for residential and commercial Smart Timers within Participating Agency’s service area; • MWDOC will work with the Rebate Contractor to track rebates paid to qualified residential and commercial applicants in order to limit the total number of rebates issued within Participating Agency’s service area and assure that the total of the residential “per Smart Timer” and commercial “per station” rebate contributions are within the “Not to Exceed” amounts shown in Table 1 and 2, below; • Residential or commercial rebates will be offered on a first come-first served basis while Program funding lasts. Therefore, if residential applications received from Program applicants throughout MWDOC’s implementation area exhaust the number of rebates available under the Program, rebates may not be available within Participating Agency’s service territory up to the maximum “Not to Exceed” number provided herein. MWDOC does not guarantee any minimum number of rebates will be available for Participating Agency’s service area. • MWDOC agrees to maintain the confidentiality of Participating Agency’s customer names, addresses and other information about the Program applicants gathered in connection with the Program, and will not cause or permit the disclosure of such information except as necessary to carry out the requirements of the Program. To the extent MWDOC contracts with third-party contractors to carry out all or any portion of the Program, MWDOC will require the contractors to maintain the confidentiality of said customer information. 4. Participating Agency Obligations: Participating Agency agrees to the following: • Participating Agency will use reasonable efforts to assist MWDOC with the marketing of the Program within the Participating Agency’s service area. Participating Agency will distribute MWDOC-produced marketing material through its direct communication with 4 customers within its service territory. This can be accomplished through the use of bill inserts, by placing marketing material at Participating Agency customer service counters, and by various means of directly advocating the Program to the public. The fact that Participating Agency elects to provide marketing shall not offset or otherwise reduce the Participating Agency’s funding obligation; • Participating Agency agrees to provide funding for the Program in the amount specified in Table 1 below per residential Smart Timer. Funding will be provided on a per Smart Timer basis up to the ”Not to Exceed” funding limit: Table 1 Category Funding Amount Not to Exceed Funding Limit For Fiscal Years 2013-14 through 2014-15 Residential $75 per Smart Timer $5,000 • If Participating Agency elects to provide additional funding for commercial Smart Timers, Table 2 below shall list the Participating Agency’s funding amount per commercial Smart Timer station. Commercial Smart Timer rebates are calculated on the commercial Smart Timer’s station capacity, and Participation Agency’s funding amounts shall be in addition to the per station amount provided by the Program. Table 2 Category Funding Amount Not to Exceed Funding Limit For Fiscal Years 2013-14 through 2014-15 Commercial Smart Timer $0 per Station $0 • Participating Agency agrees to pay, within thirty (30) days of the date of the invoice, all monthly invoices issued by MWDOC to Participating Agency. • Participating Agency may increase its “Not to Exceed” Funding Limits under this Letter Agreement by written notice to MWDOC’s General Manager made by the undersigned representative of the Participating Agency or his or her successor. Any increase must follow the form in Tables 1 – 2, and written notice of an increase must be received prior to the exhaustion of available funding. • By participating in this Program, the Participating Agency acknowledges and agrees that MWDOC is permitted to use historical water consumption data for purposes of satisfying any grant water use and water quality evaluation requirements of the Program. A similar agreement will be required of every applicant. 5. Indemnification: MWDOC has designed the Program as a rebate program in which the applicant is solely responsible for selecting, purchasing, and installing the Smart Timer. The applicant will be required to sign a release and waiver of any claims against MWDOC, the Participating Agency, and any other funding agency as a condition of participating in the Program. To the extent MWDOC or the Participating Agency or their staff performs any activities in connection with the Program, each agrees to indemnify and hold the other, and 5 Metropolitan, harmless from any and all liability, claims, obligations, damages and suits arising out of its negligence or liability without fault in the performance of such activities, except to the extent such liability, claims, obligations, damages or suits arise from the other’s, or Metropolitan’s, negligence or liability without fault. 6. Term: The Program commenced on or about September 1, 2004, and until June 30, 2013 was covered under separate, previous agreements. Effective July 1, 2013, this agreement supersedes all previous agreements between MWDOC and Participating Agency regarding Smart Timer rebate programs and will continue until June 30, 2015 or the until the targeted number of rebates (the funding) has been exhausted, whichever occurs first (“Program Expiration”). Prior to reaching the ”Not to Exceed” funding levels shown in Table 1, MWDOC will notify Participating Agency of the depleted funding levels, and request Participating Agency to increase the funding levels by written notice as provided herein. If Participating Agency declines the request to increase its funding levels in Table 1, MWDOC will direct the Rebate Contractor to discontinue offering the enhanced residential rebate levels in Participating Agency’s service area. Rebate levels for residential Smart Timers would revert to Metropolitan’s rebate level for the Program. 7. Early Termination: Participating Agency may terminate this Agreement prior to the Program Expiration date, or prior to distribution of the maximum number of rebates for Participating Agency’s service area, upon thirty (30) days’ written notice to MWDOC. MWDOC may terminate this Agreement prior to the Expiration Date, or prior to distribution of the maximum number of rebates for Participating Agency’s service area, without prior notice in the event funding for this Program is exhausted, reduced, or eliminated from any funding source. Otherwise, MWDOC may terminate this Agreement for any reason upon thirty (30) days’ written notice to Participating Agency. Participating Agency will be responsible for payment of its funding contribution for all rebates made before and after the effective date of the termination for all applications initiated by Program applicants within Participating Agency’s service area prior to the effective date of the termination. For purposes of this paragraph, an application is deemed initiated when the Program applicant obtains an application and his participation is logged-in by the Rebate Contractor. Whether the Agreement is terminated by Participating Agency or MWDOC, MWDOC will nevertheless provide Participating Agency with reports of rebate activities in Participating Agency’s service area. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by and through the authorized officers on ___________________, 2013. MUNICIPAL WATER DISTRICT OF YORBA LINDA WATER DISTRICT ORANGE COUNTY ________________________________ ____________________________ Karl W. Seckel, P.E. Interim General Manager Signature ____________________________ Name and Title Approved as to Form ____________________________ Attorney ITEM NO. 8.7 AGENDA REPORT Meeting Date: June 13, 2013 To:Board of Directors From:Steve Conklin, Acting General Manager Presented By:Steve Conklin, Acting General Manager Dept:Administration Reviewed by Legal:No Prepared By:Cindy Botts, Management Analyst Subject:Request for Review of ISDOC Bylaw Amendments SUMMARY: The Bylaws of the Independent Special Districts of Orange County (ISDOC) were last amended and ratified by the membership in January 2002. Since then changes in state law, expanded membership and other governance-related matters have prompted the ISDOC Executive Committee to review the Bylaws and develop amendments that would address these issues. The Proposed Amendments have been submitted to the special district membership for preliminary consideration and solicitation of input with a ratifying vote on Thursday, August 29, 2013. The Proposed Amendments are attached for review. STAFF RECOMMENDATION: That the Board review and consider the Proposed Amendments to the ISDOC Bylaws. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee reviewed this matter at its meeting on May 21, 2013 and support staff's recommendation. STRATEGIC PLAN: CP 2-D: Enhance the District's Regional Water and Wastewater Industry Participation ATTACHMENTS: Name:Description:Type: ISDOC_Bylaw_Proposed_Amendments_2013.pdf ISDOC Bylaw Proposed Amendments Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 RC/PH 5-0 1 INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY AMENDED AND RESTATED BYLAWS Adopted January 31, 2002 Proposed for Amendment on August 29, 2013 Formatted: Left: 1", Right: 1", Top: 0.94", Header distance from edge: 0.94" 2 INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY BYLAWS ARTICLE I GENERAL SECTION I. NAME The name of the organization shall be INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY., herein The organization shall also be known and referred to as ISDOCthe Organization. SECTION II. PURPOSE The purpose of this Organization is to propose and advocate constructive means for the improvement and functioning of Special Districts within the County of Orange, State of California, and to assist such Special Districts and their governing bodies to provide a more effective and efficient government at the closest level to the citizens of Orange County that will result in a benefit to the public. The purpose of the Organization is to advance the interests of Orange County special districts through its advocacy of sound public policy, its facilitation of educational opportunities to enhance special district governance and the services provided, and its collaboration with others to elevate awareness of the role special districts play as the form of government closest and most directly accountable to the people. SECTION III. ADMINISTRATIVE OFFICE The administrative office for the transaction of the business of the Association Organization is located at the Office of the President of the AssociationMunicipal Water District of Orange County. The Board of Directors is granted full power and authority to change the administrative office from one location to another in any place within the County of Orange, State of California, and such change shall not be considered an amendment of these bylaws. ARTICLE II MEMBERSHIP SECTION I. QUALIFICATION FOR MEMBERSHIP Formatted: Font: Bold 3 There shall be two classes categories of membership in the AssociationOrganization: A. REGULAR MEMBERS: Shall be INDEPENDENT SPECIAL DISTRICTS which that are public agencies within the County of Orange, State of California, for the local performance of governmental proprietary functions within limited boundaries, governed by a publicly elected Board of Directors or those officials appointed, in whole or in part, by another governmental body. Independent Special Districts does not include the State, the county, Citycities, County or School school Districtdistricts. Independent Special Districts shall be further defined in accordance with California Government Code Section 56044: “Independent district” or “independent special district” includes any special district having a legislative body all of whose members are elected by registered voters or landowners within the district, or whose members are appointed to fixed terms. “Independent special district” does not include any district excluded from the definition of district contained in Sections 56036 and 65036.6. B. ASSOCIATE MEMBERS: Shall be those persons or, organizations, or governmental entities who that have evidenced interest in the purposes and goals of the AssociationOrganization, but who are not members of Independent Special Districts. No oOfficers or members of an Independent Special District can are ineligible to be an Associate Member. C. APPROVAL OF MEMBERSHIP: The Executive Committee shall review, and the Board of Directors shall approve, all applications for membership, provided that the applicant meets the established membership criteria. SECTION II. VOTING RIGHTS Each Regular Member Districtdistrict, in good standing, shall be entitled to one vote on all matters brought before the membership for a vote. The presiding officer of the governing body of each regular Regular member Member agency district shall designate to the Secretary of the Association in writing one representative who shall exercise the right of the member to votebe recognized by the Organization as the voting representative for his/her district., Each district shall designate in writing and submit to the Organization’s Secretary and one alternate governing board member who shall have the right to vote in the absence of the assigned voting representativepresiding officer. The Executive Committee may, in theirat its discretion, authorize the voting upon any issue by written ballot which shall be sent via U.S. mail and emailmailed to each regular Regular memberMember district. Such authorization shall specify the time and , date and method by which the completed when such written ballots must be received by the President of the AssociationOrganization. Formatted: Font: Italic 4 A majority vote of all members present at a meeting or of all written ballots received by the submission deadline shall be necessary to carry any matter voted upon. Associate Members shall not have the right to vote on any matter before the AssociationOrganization. SECTION III. ANNUAL DUES Annual dues shall be due and payable on or before the first day of January of each year. New members shall pay their annual dues at the time they are approved for membership in the AssociationOrganization. New member dues for the initial year shall not be pro-rated. The dues of the Association Organization shall be reviewed and set by the Executive Committee and approved by the Board of Directors each year for Regular Members and for Associate Members. Associate Member dues need not be the same as dues for Regular Members. No assessments, other than annual dues, shall be levied on the members of the association without an affirmative majority vote of the membership. SECTION IV. TERMINATION OF MEMBERSHIP Any member in arrears in the payment of dues for a period of three monthsthirty (30) days after said dues are due and payable shall be notified in writing by the Treasurer of such arrearage, and, if such dues shall continue unpaid for a period of another sixty thirty (6030) days, such member shall automatically cease to be a member of the AssociationOrganization. Any member that voluntarily terminates membership in the Organization shall not be eligible for a refund of membership dues or other assessment already paid to the Organization. SECTION V. REINSTATEMENT OF MEMBERSHIP Regular and Associate memberships that were previously terminated may be reinstated after the Executive Committee receives a written petition for reinstatement and payment of the petitioners annual membership dues and other assessments for the current calendar year have been received by the Organization. ARTICLE III BOARD OF DIRECTORS Formatted: Font: Bold Formatted: Font: Bold Formatted: Font: Bold 5 SECTION I. NUMBER AND TERM OF OFFICE A. The Board of Directors shall consist of one representativethe presiding officer from each of the member Independent Special DistrictsRegular Member district, in good standing. If the designated representativepresiding officer is not present, the then that district’s alternate memberrepresentative, shall act in his/her stead. B. The members of the Board of Directors shall serve until replaced by another appointed governing board member of his/her Independent Ddistrict. Any vacancy on the Board of Directors shall be filled by the new presiding officer of governing board of thatthe District from which the vacancy occurred. SECTION II. DUTIES OF THE BOARD OF DIRECTORS A. The Board of Directors shall set policy for the Association (ISDOC)Organization. B. The Board of Directors shall set dues as recommended by the Executive Committee. CB. The Board of Directors shall elect, at their annual quarterlyits final meeting of thein even years, a President, a First Vice President, a Second Vice President, a Third Vice President, a Secretary, and a Treasurer. These officers, along with the immediate Immediate Past President, shall be designated as the Executive Committee, whose duty shall be to assist the Board of Directors in setting policy, and conducting the business of the organizationOrganization. DC. The Executive Committee shall be responsible for implementing the policies established by the Board of Directors as approved at a General Membership meeting Meeting or a Special Meeting of the membership. ED. The members of the Executive Committee shall be elected for a two-year term. SECTION III. OFFICERS AND DUTIES A. PRESIDENT The President shall be the chief executive officer of ISDOCthe Organization. The President shall preside at all meetings of the Board of Directors, the Executive Committee and the general membership. The President shall appoint all committees, and all chairpersons of such committees, with the approval and ratification by the Board of Directors. 6 The President shall represent ISDOC the Organization as the its official spokesperson and he/she shall also have the right authority to delegate such responsibility, with approval of the Executive Committee. The President shall be an ex-officio member of all Committees. B. FIRST VICE PRESIDENT The First Vice President, in the absence or disability of the President, shall perform all the duties of the President, and when so acting, he/she shall have the powers of and be subject to all the restrictions upon the President. The First Vice President shall be the Chairman of the Program Committee. C. SECOND VICE PRESIDENT The Second Vice President, in the absence or disability of the President and First Vice President, shall perform all the duties of the President and when so acting, shall have all the powers of and be subject to all the restrictions upon the President. The Second Vice President shall be Chairman of the Membership Committee. D. THIRD VICE PRESIDENT The Third Vice President, in the absence or disability of the President, First Vice President, and Second Vice President, shall perform all the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President. The Third Vice President shall be Chairman of the Legislative Committee. E. SECRETARY The Secretary shall maintain a written record of all business conducted at the meetings of the Board of Directors and the Executive Committee. The Secretary or his/her designee shall be responsible for all correspondence and mailing the dissemination of information to members. F. TREASURER The Treasurer shall maintain the complete financial records andof ISDOC, establish and maintain bank accounts in the name of the AssociationOrganization, and pay all bills duly approved by the Executive Committee in accordance with the yearly budget. 7 There shall be an annual audit of the books of the Treasurer by a competent accountant or accounting agency, designated by the Executive Committee, with a report to be presented to the membership at the Organization’s next membership meeting. G. IMMEDIATE PAST PRESIDENT The Immediate Past President shall serve as a voting, ex-officio member of the Executive Committee. H. All officers of the Association Organization shall be elected or appointed officials, except the Secretary and/or the Treasurer, each of whom, may or may not be elected officials of a Regular Member district. However, an official who has been appointed to a district’s elected board of directors must first be elected to that body before being eligible to serve as an officer of the Organization. I. Officials who wish to see election or appointment as an officer of the Organization shall first secure from his/her district an official endorsement of his/her candidacy in the form of a board resolution. ARTICLE IV MEETINGS SECTION I BOARD OF DIRECTORS A. The Board of Directors shall meet quarterly or no less than three times per calendar year. , and tThe last quarterly meeting of the calendar year shall be designated as the ANNUAL MEETING of the AssociationOrganization. B. The Secretary Organization shall disseminate mail notices of the Board Meetings at least fifteen thirty (1530) days prior to the Meeting. Said notices shall be disseminated via email sent to all Regular and Associate Members, representatives and alternates. The Notice shall give the date, time, location and agenda fany action items for or the meeting. C. Special Meetings of the Board of Directors may be called at any time by the President, any ten (10) Members of the Board of Directors or by a majority of the Executive Committee. The Secretary Organization shall send each Member, each Associate member, each representative and each alternatedisseminate notices of the Special Meeting at least five (5) business days prior to the meeting. The Said notice shall contain give the date, time, location, and the subject matter of the Special Meeting. Action may only be taken on Only such matters listed on the Special Meeting agenda may be addressed at the Special Meetingnotice. D. All meetings of the Board of Directors shall be held in Orange County. Formatted: Indent: Hanging: 0.5" Formatted: Indent: First line: 0" 8 SECTION II. MEETINGS OF THE EXECUTIVE COMMITTEE A. The Executive Committee shall meet monthly at the Municipal Water District of Orange County, at a time and place specified by the President and announced in the meeting notice. The monthly meeting may be cancelled by the President if he/she determines that there is not sufficient business to justify a meeting. B. A Special Meeting of the Executive Committee may be called by the President or a majority of the Executive Committee, with five (5) business days advance notice given in writing via email by the SecretaryOrganization. Such notice shall state the date, time, location and agenda for the Special Meeting. Said notice may be given telephonically, verbally or in writing. C. All meetings of the Executive Committee shall take place in Orange County. SECTION III. QUORUM A. A quorum shall be established when the designated representatives of twenty-five (25%) percent of the Regular members Members are present at a duly noticed regular Regular or special Special meeting Meeting of the Independent District of Orange CountyOrganization. ARTICLE V AMENDMENTS These By-Llaws may be amended by a majority vote of the Board of Directors members present at a duly noticed membership meeting. All proposed amendments shall be disseminated via U.S. Mail and email mailed to the each Regular member Member district, the representative of the district, and the alternate for the district no less than thirty (30) days prior to any the membership meeting. ARTICLE VI ENACTMENT OF AMENDMENTS These Amended and Restated By-Laws laws are to take effect February 1, 2002, immediately upon approval of the Board of Directors. 9 ARTICLE VII PARLIAMENTARY AUTHORITY All matters not covered under these By-Laws shall be governed by Roberts’ Rules of Order. -End- ITEM NO. 11.1 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Executive-Administrative-Organizational Committee (Melton/Kiley) · Minutes of meeting held May 21, 2013 at 4:00 p.m. · Meeting scheduled June 25, 2013 at 12:00 p.m. ATTACHMENTS: Name:Description:Type: 052113_EAO_-_Minutes.docx EAO Mtg Minutes 05/21/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT EXEC-ADMIN-ORGANIZATIONAL COMMITTEE MEETING Tuesday, May 21, 2013 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 21, 2013 meeting of the Yorba Linda Water District’s Executive- Administrative-Organizational Committee was called to order by Director Melton 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 Gary T. Melton, Chair Steve Conklin, Acting General Manager Director Robert R. Kiley Damon Micalizzi, Public Info Officer OTHER ATTENDEES Arthur G. Kidman, Partner, Kidman Law LLP Heather Stratman, Senior Director, Townsend Public Affairs 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. First Amendment to OCTA Settlement Agreement Mr. Conklin reported that OCTA has requested a first amendment to the Settlement Agreement, which calls for YLWD to agree to the Federally- required Buy America Requirements of this federally-funded project. Following discussion, the Committee supported the staff recommendation for Board approval for the first amendment, as reviewed by the Committee. 4.2. Request for Review of ISDOC Bylaw Amendments Mr. Conklin reported that ISDOC is soliciting comments for proposed amendments to its bylaws, which would be the first since 2002. A redline copy of the bylaws with proposed revisions was provided to the Committee. Following discussion, the Committee recommended that the revisions be brought to the Board for review and consideration. ISDOC is planning to ratify the changes in August 2013. 2 4.3. District Media Policy Mr. Micalizzi described the draft media policy which has been proposed as a guide for interaction with the news media. He indicated that the draft policy outlines the limits on how staff should interact with the media and provides guidelines for the release of public information to print and electronic news media. It was noted that the draft policy has not yet been reviewed by legal counsel. The Committee recommended that following legal review, the draft policy be brought to the Board for consideration. 5. DISCUSSION ITEMS 5.1. Status of Legislative Affairs (Verbal Report) Mrs. Stratman and the Committee discussed various state and local legislative issues relating to the District. Following completion of the discussion, Mrs. Stratman left the meeting. 5.2. First Report on 2013 Legislative Bills from Kidman Law LLP Mr. Kidman provided a verbal report on the written summary provided to the Committee on legislative bills of potential concern to the District, and indicated that he will continue to follow their progress and keep the Committee advised. 5.3. Status of Operations and Efficiency Study (Verbal Report) Mr. Conklin reported that staff is gathering various documents and information about the District for preparation of the study as requested by Koff & Associates. He noted that we are on schedule for the project kick- off meetings scheduled June 4-5, 2013. 5.4. Status of OCWD Annexation Project (Verbal Report) Mr. Conklin reported that 14 written responses to the draft Annexation EIR were received by the closing date of May 17, 2013. He indicated that the first meeting to review and discuss the responses with staff of OCWD, IRWD, Anaheim and the EIR-preparation consultant is scheduled May 22, 2013 at OCWD, which he and Anthony Manzano will attend. Mr. Conklin noted that a special meeting of the groundwater producers is being scheduled to discuss the letter submitted by nine groundwater producers. The Committee discussed the various issues regarding the annexation request process and asked staff to keep the Committee advised of developments. 5.5. Status of Sage and Esperanza Hills Development Projects (Verbal Report) Mr. Conklin reported that there is little new information on this matter. The only item of note is that LAFCO has indicated that it plans to request a stakeholder meeting that will include the City of Yorba Linda, County of Orange, YLWD, and the two developers. 3 5.6. Status of Plumosa Property Sale (Verbal Report) Mr. Conklin reported that the 60-day period for public agencies to make an offer for the property ends May 28, 2013. He indicated that following that date, he plans to meet with Mr. Rudemetkin, Yorba Linda City Manager, to discuss the potential for offers from local developers. Mr. Conklin also noted that the District has been contacted by a local realtor who has indicated that he may have some potential interested parties. 5.7. Customer Service Feedback Report Mr. Conklin reviewed the subject report for April with the Committee. 5.8. Director’s and Acting General Manager Fees and Expenses The subject fees and expenses for the period of January-March 2013 were reviewed by the Committee with no comments. 5.9. Status of Strategic Plan Initiatives Mr. Conklin reported on the status of strategic plan initiatives. 5.10. Future Agenda Items and Staff Tasks None. The Committee adjourned to Closed Session at 5:55 p.m. Directors Melton and Kiley were present. Also present were Messrs. Conklin, Micalizzi and Kidman. 6. CLOSED SESSION 6.1. 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) 6.2. 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 The Committee reconvened in Open Session at 6:10 p.m. Director Melton announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 4 7. ADJOURNMENT 7.1. The meeting was adjourned at 6:10 p.m. The next Executive- Administrative- Organizational Committee meeting is scheduled to be held Tuesday, June 25, 2013 at noon. ITEM NO. 11.2 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Finance-Accounting Committee (Hawkins/Melton) · Minutes of meeting held May 31, 2013 at 8:30 a.m. · Meeting scheduled June 28, 2013 at 8:00 a.m. ATTACHMENTS: Name:Description:Type: 053113_FA_-_Minutes.doc FA Mtg Minutes 05/31/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Friday, May 31, 2013 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 31, 2013 meeting of the Yorba Linda Water District’s Finance- Accounting Committee was called to order by Director Hawkins at 8:30 a.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 Phil Hawkins, Chair Stephen Parker, Finance Manager Director Gary T. Melton 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. Fats, Oils and Grease (FOG) Discharge Permit Fees Mr. Parker explained that during a recent review of the FOG program, staff determined that the Orange County Health Care Agency (OCHCA) FOG review could be eliminated. That combined with efficiencies found in- house resulted in a significant reduction of fees necessary to administer the FOG Program. As a result, staff requested the elimination of the OCHCA inspection services and the reduction of the FOG fees to $145 for initial and annual FOG Permits, the Noncompliance Fee reduced to $200 and the Mitigation Fee reduced to $1,500. The Committee supported staff recommendation, with Director Melton recusing himself. 4.2. Financial Reserves Policy for FY 2013/14 Mr. Parker presented the Financial Reserves Policy for FY 13/14. Mr. Parker explained that by adding the Debt Service Reserve to the Reserve Policy, there would be an initial transfer from Operating Reserves to establish the Debt Service Reserve, and no future rate increase would be required to fund the reserve as it is already funded with existing rates. The Committee had questions about the new reserve increasing the minimum reserve threshold and whether the District would be able to stay within it. Mr. Parker explained that the reserve policy was not binding to the Board, but more goal-setting. He also affirmed that should OCWD approve the District’s annexation request and the District use a short-term financing option, the District should be able to stay above the minimum reserve threshold. The Committee supported staff recommendation. 2 4.3. Appropriations Limit for FY 2013/14 Mr. Parker offered for the Committee’s review the annual Appropriations Limit calculation. Mr. Parker explained that the Appropriations Limit was a state requirement designed to assure that government agencies do not assess and collect taxes in excess of controlled limits. Since the District receives a very small amount of property tax money, the District will always be quite far from the limit. Mr. Parker showed the calculation moving up to $5,983,590 for the upcoming year. The Committee supported staff’s recommendation of the resolution adopting the new limit. 4.4. Unaudited Financial Statements for the Period Ending March 31, 2013 Mr. Parker presented the unaudited quarterly financial statements to the Committee. He explained that this item would go on the consent calendar for the Board with the Committee’s approval. The March 2013 debt service coverage is at 1.78%, well above the 1.10 required coverage level. Mr. Parker said that he believed this would go up in the final three months of the year, as January – March is the District’s lowest revenue period of the fiscal year. After some further discussion about the financial statements the Committee supported staff recommendation. 5. DISCUSSION ITEMS 5.1. Short-Term Financing Options (Verbal Report) Mr. Parker shared some of the conversations he had been having with CSDA Finance Corporation as well as other financial institutions looking at different short-term financing options. Mr. Parker presented preliminary terms from the different institutions and the Committee recommended that Mr. Parker continue discussions with the financial institutions. 5.2. CalPERS Employer Contribution Rate Increase (Verbal Report) Mr, Parker informed the Committee that with the recent CalPERS vote, future employer rates will be going up by approximately 1% per year over the next 5 or 6 years. Mr. Parker shared that the District’s current rate was between 10% and 11%. 5.3. Investment Report for Period Ending April 31, 2013 Mr. Parker presented the investment report for April 2013. He also explained that the District’s yield of 0.65% would be going up in the coming months, as staff has begun making investments in Certificates of Deposit (below the $250,000 FDIC threshold) and Federal Agency Securities (which have the full faith and credit of the US Government). He further explained that all investments purchased so far had a higher yield than the CalTRUST medium term portfolio’s 0.67%. As such, Mr. Parker expected the yields in future month’s reports to begin inching up. Mr. Parker pointed out that the District gained over $700,000 in total reserves and explained that it was due to capital project being paid for with borrowing from the District’s Line of Credit. 3 5.4. Budget to Actual Results for April 2013 Mr. Parker shared the April Budget to Actual results with the Committee. As nothing dramatic had changed from previous results, the Committee had no questions. 5.5. Broker Dealer Approval Mr. Parker informed the Committee that he has vetted his 5th (and final) broker/dealer. Bank of the West is owned by BNP Paribas, the 5th largest bank in the world, and being a primary dealer, Craig Conley will be able to provide the District with inventory that 3 of the other 4 broker dealers do not have access to. 5.6. Future Agenda Items and Staff Tasks None. 6. ADJOURNMENT 6.1. The meeting was adjourned at 9:40 a.m. The next Finance-Accounting Committee meeting is scheduled to be held Friday, June 28, 2013 at 8:00 a.m. ITEM NO. 11.3 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Personnel-Risk Management Committee (Collett/Beverage) · Minutes of meeting held May 14, 2013 at 4:00 p.m. · Minutes of meeting held June 11, 2013 at 4:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled July 9, 2013 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 051413_PRM_-_Minutes.doc PRM Mtg Minutes 05/14/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT PERSONNEL-RISK MANAGEMENT COMMITTEE MEETING Tuesday, May 14, 2013 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 14, 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 3. PUBLIC COMMENTS None. 4. DISCUSSION ITEMS 4.1. Human Resources, Risk Management, and Safety Activity Staff reported that interviews were scheduled for May 15, 2013 for the Instrumentation Technician position. On May 6, 2012, a limited-term part- time Records Management Clerk was hired to assist the District’s Executive Secretary. The following vacant positions were filled with internal candidates: Customer Service Rep II and Operations Manager. 4.2. Status of Performance Evaluations (Verbal Report) Staff reported on the status of past-due performance evaluations. Mr. Conklin has continued to encourage the District’s management team to complete their respective employee evaluations on time. The Committee was pleased that this is a top priority with management staff and that the number of past-due performance evaluations have decreased since September 2012. 4.3. Status of Assessment of Job Descriptions and Titles (Verbal Report) This item was not discussed. 4.4. Status of General Manager Recruitment (Verbal Report) The Committee suggested that the recruitment for this position should commence August 1, 2013. 4.5. Future Agenda Items and Staff Tasks None. 2 5. ADJOURNMENT 5.1. The meeting was adjourned at 5:05 p.m. The next Personnel-Risk Management Committee meeting is scheduled to be held Tuesday, June 11, 2013 at 4:00 p.m. ITEM NO. 11.4 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Planning-Engineering-Operations Committee (Kiley/Hawkins) · Minutes of meeting held June 6, 2013 at 3:00 p.m. · Meeting scheduled July 8, 2013 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 060613_-_PEO_Minutes.docx PEO Mtg Minutes 06/06/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT PLANNING-ENGINEERING-OPERATIONS COMMITTEE MEETING Thursday, June 6, 2013 3:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 6, 2013 meeting of the Yorba Linda Water District’s Planning- Engineering-Operations Committee was called to order by Director Kiley at 3:05 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 Anthony Manzano, Sr Project Mgr 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. Agreement with Yorba Linda Country Club Mr. Conklin reported that an agreement was negotiated with the Yorba Linda Country Club (YLCC) for YLWD to construct approximately 150-feet of 8-inch water line through YLCC, and YLCC to grant an easement for the pipeline, in exchange for YLWD installing erosion control improvements. Mr. Manzano described the improvements and the easements. Following discussion, the Committee supported the staff recommendation that the Board authorize approval of the subject Agreement for improvements and the easements. 4.2. Declaration of Restrictive Covenants with Stanley and Faye Schneider Mr. Conklin reported that the District has a recorded sewer pipeline easement on Lot 5 of Tract 9782, within property owned by the Schneider’s. The owners are requesting to replace a spa and improvements within the easement area. Mr. Manzano described the improvements and the easement area. Following discussion, the Committee supported the staff recommendation that the Board authorize execution of a Declaration of Restrictive Covenants with the Schneider’s. 2 5. DISCUSSION ITEMS 5.1. Status of Northeast Area Developments (Verbal Report) Mr. Conklin reported that there has been little to report on this issue. Director Kiley provided a copy of an article from the Yorba Linda Star from June 6, 2013 titled “Developer Sues Over Easement.” The article describes the suit filed May 21, 2013 by Esperanza Hills against the Cielo Vista landowners. After the meeting, the article was emailed to the Board. 5.2. Monthly Groundwater Production and Purchased Import Water Report Mr. DeCriscio reported that the District is on target to complete the June 30 end of the water year at our BPP of 50.3%. He noted that the water production plan has been drafted for FY 2013/14, which includes the expectation that we will have to pump 2,000 AF of CUP water for MWD. 5.3. Monthly Production Summary Report Mr. DeCriscio reviewed the subject report with the Committee, including water consumption, weather conditions, water quality, and equipment out of service and that returned to operation. He also reported that motors for three pumps have been pulled for repairs and maintenance, one each from Hidden Hills, Santiago and Box Canyon booster stations. The plan is to have them serviced and back in operation by July. 5.4. Monthly Preventative Maintenance (PM) Report Mr. DeCriscio reported on the status of PM for the month and year to date. He noted that all tasks are on target except for Sewer Televising. Mr. DeCriscio indicated that some critical sewer equipment is down for repairs. He will investigate the problems, the plan for getting back on track, and report back to the Committee next month. 5.5. Groundwater Producers Meeting Report Mr. Conklin reported on the subject meeting in May that he and Mr. DeCriscio attended. He commented on developments on the issue of OCWD annexation, noting that two meetings are scheduled on June 10, 2013, one in the morning with the Groundwater Producers, and one in the afternoon on the Annexation EIR. He will be attending both. 5.6. Status of Capital Projects in Progress Mr. Conklin reported on the status of capital projects currently in planning, design and construction. 5.7. Status of Strategic Plan Initiatives Mr. Conklin reported on the status of strategic plan initiatives that relate to planning, engineering and operations. 3 5.8. Future Agenda Items and Staff Tasks The Committee asked about the status of the Meter Test Bench. Mr. DeCriscio reported that modifications to connections to the bench system are being completed and it should be complete shortly. The Committee asked that a tour through the Meter Test Bench area be included on the facilities tour on June 20, 2013. The Committee asked that they be provided an update on what we have found so far with meter testing, and what we anticipate we can accomplish with and without the fifth meter reader position. Mr. DeCriscio reported to the Committee on water day-lighting through the pavement on Alder near San Antonio. He indicated that this situation has been evident on and off for quite a while. It is anticipated that the source is groundwater, but that our crew will be performing a pressure test on our lines in the area on June 10, 2013 in an attempt to confirm that our mains are not leaking. Other tests and investigation may follow as necessary. 6. ADJOURNMENT 6.1. The meeting was adjourned at 4:15 p.m. The next Planning-Engineering- Operations Committee meeting is scheduled to be held Monday, July 8, 2013 at 4:00 p.m. ITEM NO. 11.5 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Public Affairs-Communications-Technology Committee (Beverage/Collett) · Minutes of meeting held May 22, 2013 at 3:00 p.m. · Minutes of meeting held June 3, 2013 at 4:00 p.m. · Meeting scheduled July 1, 2013 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 052213_PACT_-_Minutes.docx PACT Mtg Minutes 05/22/13 Minutes 060313_PACT_-_Minutes.docx PACT Mtg Minutes 06/03/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC AFFAIRS-COMMUNICATIONS-TECHNOLOGY COMMITTEE MEETING Wednesday, May 22, 20133:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 22, 2013 meeting of the Yorba Linda Water District’s Public Affairs- Communications-Technology Committee was called to order by Director Beverage at 3:00p.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 Damon Micalizzi, Public Info Officer Cody Peterson, Public Affairs Intern 3. PUBLIC COMMENTS None. 4. DISCUSSION ITEMS 4.1. Promotional Items for FY 2013/14 (Verbal Report) The Committee reviewed options for promotional items and approved staff’s recommendation to scale back on various items for the next fiscal year. 4.2. Options for Water Education for FY 2013/14 (Verbal Report) Mr. Micalizzi updated the Committee on options for water education based on the District’s budget for this year. The Committee opted to focus on an enhanced program for 3rd, 4th, and 5th grade water education throughout the District rather than a more generic program for grades K-5. 4.3. Draft Summer Newsletter Content Mr. Micalizzi presented the draft newsletter content to the Committee for review and approval. With minor edits and suggestions the Committee approved content for the newsletter. A final draft of the newsletter will be presented to the Committee at the next meeting. 4.4. YLWD.com Review and Social Media Analytics Report (To be provided at the meeting.) Mr. Peterson presented the Committee with a detailed analytics report for the District’s website, demonstrating the new capabilities of Google Analytics which will be used to optimize the site. 2 4.5. Future Agenda Items and Staff Tasks None. 5. ADJOURNMENT 5.1. The meeting was adjourned at 4:45 p.m. The next Public Affairs- Communications-Technology Committee meeting is scheduled to be held Monday, June 3, 2013 at 4:00 p.m. 1 MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC AFFAIRS-COMMUNICATIONS-TECHNOLOGY COMMITTEE MEETING Monday, June 3, 2013 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 3, 2013 meeting of the Yorba Linda Water District’s Public Affairs- Communications-Technology Committee was called to order by Director Beverage at 4:00p.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 Damon Micalizzi, Public Info Officer Art Vega, Acting IT Manager Cody Peterson, Public Affairs Intern 3. PUBLIC COMMENTS None. 4. DISCUSSION ITEMS 4.1. CMMS Reports (Verbal Report) Mr. Vega displayed for the Committee a searchable database present on the intranet to view CMMS Reports. In addition he informed the Committee that the IT Department was working to color pipes by work order status in the CMMS program for the sewer crew. The Committee was impressed with the breadth of information available and asked how it could be utilized by staff to increase efficiency. 4.2. Status of Dynamics GP Consultant (Verbal Report) Mr. Vega informed the Committee that the consultant didn’t believe that he could finish the task by the end of the fiscal year. Director Beverage suggested those funds budgeted for the project should roll over into the next fiscal year instead of returning to reserves. Director Collett asked how long it would take to finish the project and was informed that it remained unclear at this time. 4.3. Draft Summer Newsletter (To be provided at the meeting) Mr. Micalizzi presented the draft newsletter to the Committee for approval. Director Beverage commented on the need to make the graphs easier to read and decrease the amount of text to make it easier on the eyes. The Committee approved the content with revision. 2 4.4. Water Education for FY 2013/14 (Verbal Report) Mr. Micalizzi updated the Committee on a proposed change to the District’s Water Education Program, taking the enhanced Keypad Assembly program to all 3rd, 4th and 5th graders in the District as opposed to the basic program, which was taken to all elementary grade levels in the past. The Committee approved the proposal noting that it is cost- neutral while bringing a better product to a more focused and influential group of students. 4.5. Lobby/Board Room Signage Changes (Verbal Report) Mr. Micalizzi informed the Committee that for $570 the vendor would raise the boardroom sign and apply a frosted vinyl backing to the lobby signage to make the shadows less obvious. The Committee approved staff to proceed with those changes. 4.6. Future Outreach and Press Relations (Verbal Report) Mr. Micalizzi updated the Committee that the new Yorba Linda beat reporter for the OC Register would be sending a reporter to the District’s June 20, 2013 tour of the District. 4.7. Status of Public Outreach Activities The Committee reviewed the report and discussed dealing with some requests that are outside the scope of the District’s program. 4.8. Status Report on Strategic Plan Initiatives The Committee reviewed the report. 4.9. Future Agenda Items and Staff Tasks A draft District brochure and draft Crisis Communication Plan will be presented at the Committee’s next meeting. 5. ADJOURNMENT 5.1. The meeting was adjourned at 5:30p.m. The next Public Affairs- Communications-Technology Committee meeting is scheduled to be held Monday, July 1, 2013 at 4:00 p.m. ITEM NO. 11.9 AGENDA REPORT Meeting Date: June 13, 2013 Subject:YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Melton) · Minutes of meeting held May 28, 2013 at 4:00 p.m. · Meeting scheduled July 23, 2013 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 052813_MWDOC_OCWD_-_Minutes.docx MWDOC/OCWD Mtg Minutes 05/28/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT JOINT COMMITTEE MEETING WITH MWDOC AND OCWD Tuesday, May 28, 2013 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 28, 2013 meeting of the Yorba Linda Water District’s Joint Agency Committee with MWDOC and OCWD was called to order by Director Melton 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 YLWD COMMITTEE MEMBERS YLWD STAFF Director Michael J. Beverage Steve Conklin, Acting General Manager Director Gary T. Melton MWDOC COMMITTEE MEMBER MWDOC STAFF Director Brett Barbre Karl Seckel, Interim General Manager OCWD COMMITTEE MEMBER OCWD STAFF Director Roger Yoh John Kennedy, Executive Director Engineering & Local Resources 3. PUBLIC COMMENTS None. 4. DISCUSSION ITEMS 4.1. Water Supply Outlook Director Barbre confirmed that the MWD water supply condition at this time is relatively good, with 3.5 MAF in storage. 4.2. YLWD Annexation to OCWD There was an extensive discussion on the status of the annexation EIR, the response from various groundwater producers, and the process moving forward to a potential decision by the OCWD Board in August 2013. 4.3. YLWD Well Site on OCWD Property Mr. Conklin reported that preparation of specs for the drilling of Well 21 is being completed. Drilling of the well is planned for September 2013. 2 4.4 Water-Use Efficiency Programs for Placentia and Yorba Linda Mr. Conklin reported that a very informative presentation was made to City of Yorba Linda staff by Joe Berg of MWDOC on the subject programs, and he thanked Mr. Seckel for Mr. Berg’s work. Mr. Conklin indicated that he will be providing a handout of that information to the City of Placentia staff on June 17, 2013 and advising them that MWDOC staff can meet with them for a presentation and more details. 4.5 Feedback on OC Water Summit Mr. Seckel requested feedback from YLWD attendees at the Water Summit and the quarterly MWDOC Elected Officials Forum. Directors Melton and Beverage both spoke highly of the meetings and information received. 4.6 Poseidon Desalination Plant in Huntington Beach Mr. Seckel reported that the project is moving forward, though slowly and with work still at hand. Director Beverage recalled that YLWD did not choose to “buy-in” to the plant production when offered a few years ago, but may reconsider if offered, when the project comes closer to fruition. 4.7 Groundwater Replenishment System Production and Expansion Director Yoh reported that the plant is producing at capacity and that the expansion project construction may be complete in March 2015. 4.8 SCE Energy Outlook for Summer 2013 Mr. Seckel reported that SCE is still working to get a portion of the San Onofre Plant back in operation for summer demand. 4.9 MET Finances Director Barbre reported that MET is attempting to get its percentage of AV on the property tax bill frozen at the current rate, to maintain a higher revenue to cover fixed charges, and reduce potential future increases on the commodity charge. 4.10 Future Agenda Items and Staff Tasks None. 5. ADJOURNMENT 5.1. The meeting was adjourned at 5:35 p.m. The next YLWD-MWDOC- OCWD Joint Agency Committee meeting is scheduled to be held Tuesday, July 23, 2013 at 4:00 p.m. ITEM NO. 13.1 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Meetings from June 14, 2013 - July 31, 2013 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Event Date Attendance by: June 2013 Joint Committee Meeting with City of PlacentiaMon, Jun 17Melton/Hawkins Organizational Efficiency Ad Hoc Committee MeetingTue, Jun 18Beverage/Hawkins 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 OCWD 80th Anniversary ReceptionFri, Jun 21Collett/Kiley Citizens Advisory Committee MeetingMon, Jun 24Beverage Exec-Admin-Organizational Committee MeetingTue, Jun 25Melton/Kiley Personnel-Risk Management Committee MeetingTue, Jun 25Collett/Beverage Yorba Linda Planning CommissionWed, Jun 26Hawkins Board of Directors Regular MeetingThu, Jun 27 Finance-Accounting Committee MeetingFri, Jun 28Hawkins/Melton Employee PicnicSat, Jun 29 July 2013 Pub Affairs-Communications-Tech Committee MeetingMon, Jul 1Beverage/Collett Yorba Linda City CouncilTue, Jul 2Kiley MWDOC/MWD WorkshopWed, Jul 3Melton OCWD BoardWed, Jul 3Kiley District Offices ClosedThu, Jul 4 Planning-Engineering-Operations Committee MeetingMon, Jul 8Kiley/Hawkins Personnel-Risk Management Committee MeetingTue, Jul 9Collett/Beverage LAFCOWed, Jul 10Beverage Yorba Linda Planning CommissionWed, Jul 10Melton Board of Directors Regular MeetingThu, Jul 11 WACOFri, Jul 12Hawkins/Kiley Exec-Admin-Organizational Committee MeetingTue, Jul 16Melton/Kiley Yorba Linda City CouncilTue, Jul 16Collett MWDOC BoardWed, Jul 17Melton Organizational Efficiency Ad Hoc Committee MeetingWed, Jul 17Beverage/Hawkins OCWD BoardWed, Jul 17Kiley Citizens Advisory Committee MeetingMon, Jul 22Beverage Finance-Accounting Committee MeetingMon, Jul 22Hawkins/Melton Joint Committee Meeting with MWDOC and OCWDTue, Jul 23Beverage/Melton Yorba Linda Planning CommissionWed, Jul 24Hawkins Board of Directors Regular MeetingThu, Jul 25 7:00PM 8:30AM 8:30AM 3:00PM 5:30PM 8:30AM 12:00PM 4:00PM 8:30AM 7:00PM 8:30AM 7:30AM 4:00PM 6:30PM 6:30PM 8:30AM 5:30PM 7:00AM 4:00PM 4:00PM 8:30AM 8:00AM 11:00AM 4:00PM 8:00AM 9:00AM 8:30AM 12:00PM 4:00PM 7:00PM 2:00PM 6:30PM 8:30AM 8:30AM 5:30PM 6:00PM Board of Directors Activity Calendar Time 9:30AM 6/7/2013 8:29:52 AM ITEM NO. 14.1 AGENDA REPORT Meeting Date: June 13, 2013 Subject:Interview Sessions with Koff & Associates for Organizational & Efficiency Study - June 4-5 & 10, 2013 (Ratify Director attendance.) OCWD 80th Anniversary Reception - June 21, 2013 UWI Annual Conference - August 14-16, 2013 STAFF RECOMMENDATION: That the Board of Directors authorize Director attendance at these events if desired. ATTACHMENTS: Name:Description:Type: OCWD_Reception.pdf Backup Material Backup Material UWI_Conference.pdf Backup Material Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/13/2013 PH/RC 5-0 Hear Opposing Views From Several Experts on Hear Opposing Views From Several Experts on Hear Opposing Views From Several Experts on Hear Opposing Views From Several Experts on These Hot Button Issues:These Hot Button Issues:These Hot Button Issues:These Hot Button Issues: The release of the draft Bay Delta Conservation Plan. Fixing the Delta or what? Will urban areas receive enough water? The Delta Plan has been finalized, how does it link with the draft BDCP? The Bureau of Reclamation’s study on the Colorado River supply and demand has been released...what does that mean for the Urban Southwest? Hear the various perspectives from Mexico, Denver, Las Vegas, San Diego County Water Authority, Central Arizona Project and the Colorado River Board on the Bureau’s study. Whatever is decided as a result of the study, will Washington D.C. be able to help? How will the environmental groups view the newly released study? The Frick & Frack of Fracking - What it is and its potential impact on California's water supply. URBAN WATER INSTITUTURBAN WATER INSTITUTURBAN WATER INSTITUTURBAN WATER INSTITUTE’SE’SE’SE’S “Where Has All The Water Gone?”“Where Has All The Water Gone?”“Where Has All The Water Gone?”“Where Has All The Water Gone?” August 14 August 14 August 14 August 14 ---- 16, 2013 16, 2013 16, 2013 16, 2013 Hilton Mission Bay ResortHilton Mission Bay ResortHilton Mission Bay ResortHilton Mission Bay Resort 1775 East Mission Bay Drive San Diego, CA 92109 (619) 276-4010 For more information please contact Julie Ackman at (949) 679-9676 or julie@urbanwater.com To register please visit our website www.urbanwater.comTo register please visit our website www.urbanwater.comTo register please visit our website www.urbanwater.comTo register please visit our website www.urbanwater.com Confirmed SpeakersConfirmed SpeakersConfirmed SpeakersConfirmed Speakers Andrew Grinberg, Program Andrew Grinberg, Program Andrew Grinberg, Program Andrew Grinberg, Program Organizer, Clean Water ActionOrganizer, Clean Water ActionOrganizer, Clean Water ActionOrganizer, Clean Water Action Bill Hasencamp, Colorado River Bill Hasencamp, Colorado River Bill Hasencamp, Colorado River Bill Hasencamp, Colorado River Program ManagerProgram ManagerProgram ManagerProgram Manager Metropolitan Water District of Metropolitan Water District of Metropolitan Water District of Metropolitan Water District of Southern CaliforniaSouthern CaliforniaSouthern CaliforniaSouthern California Jerry Meral, Deputy Resources Jerry Meral, Deputy Resources Jerry Meral, Deputy Resources Jerry Meral, Deputy Resources Secretary, State of CaliforniaSecretary, State of CaliforniaSecretary, State of CaliforniaSecretary, State of California David Modeer, General ManagerDavid Modeer, General ManagerDavid Modeer, General ManagerDavid Modeer, General Manager Central Arizona ProjectCentral Arizona ProjectCentral Arizona ProjectCentral Arizona Project Mark Nechodom, DirectorMark Nechodom, DirectorMark Nechodom, DirectorMark Nechodom, Director Department of ConservationDepartment of ConservationDepartment of ConservationDepartment of Conservation Halla Razak, Colorado River Halla Razak, Colorado River Halla Razak, Colorado River Halla Razak, Colorado River Program Director, San Diego Program Director, San Diego Program Director, San Diego Program Director, San Diego County Water AuthorityCounty Water AuthorityCounty Water AuthorityCounty Water Authority Mark Waage, Water Resources Mark Waage, Water Resources Mark Waage, Water Resources Mark Waage, Water Resources Planning, Denver WaterPlanning, Denver WaterPlanning, Denver WaterPlanning, Denver Water Catherine ReheisCatherine ReheisCatherine ReheisCatherine Reheis----BoydBoydBoydBoyd President, Western States President, Western States President, Western States President, Western States Petroleum AssociationPetroleum AssociationPetroleum AssociationPetroleum Association Barbara BarriganBarbara BarriganBarbara BarriganBarbara Barrigan----ParrillaParrillaParrillaParrilla Executive DirectorExecutive DirectorExecutive DirectorExecutive Director Restore the DeltaRestore the DeltaRestore the DeltaRestore the Delta Carly Jerla, Colorado River Carly Jerla, Colorado River Carly Jerla, Colorado River Carly Jerla, Colorado River Basin Study ManagerBasin Study ManagerBasin Study ManagerBasin Study Manager Bureau of ReclamationBureau of ReclamationBureau of ReclamationBureau of Reclamation Aaron Citron, Policy AnalystAaron Citron, Policy AnalystAaron Citron, Policy AnalystAaron Citron, Policy Analyst Environmental Defense FundEnvironmental Defense FundEnvironmental Defense FundEnvironmental Defense Fund Roger Patterson, Asst. General Roger Patterson, Asst. General Roger Patterson, Asst. General Roger Patterson, Asst. General Manager, Metropolitan Water Manager, Metropolitan Water Manager, Metropolitan Water Manager, Metropolitan Water District of Southern CaliforniaDistrict of Southern CaliforniaDistrict of Southern CaliforniaDistrict of Southern California Mayor Bob Filner Mayor Bob Filner Mayor Bob Filner Mayor Bob Filner City of San DiegoCity of San DiegoCity of San DiegoCity of San Diego Terry Erlewine, General Manager Terry Erlewine, General Manager Terry Erlewine, General Manager Terry Erlewine, General Manager State Water ContractorsState Water ContractorsState Water ContractorsState Water Contractors Jason Peltier, Chief Deputy Jason Peltier, Chief Deputy Jason Peltier, Chief Deputy Jason Peltier, Chief Deputy General ManagerGeneral ManagerGeneral ManagerGeneral Manager Westlands Water DistrictWestlands Water DistrictWestlands Water DistrictWestlands Water District Phil Isenberg, ChairmanPhil Isenberg, ChairmanPhil Isenberg, ChairmanPhil Isenberg, Chairman Delta Stewardship CouncilDelta Stewardship CouncilDelta Stewardship CouncilDelta Stewardship Council Sunne Wright McPeak, President Sunne Wright McPeak, President Sunne Wright McPeak, President Sunne Wright McPeak, President California Emerging California Emerging California Emerging California Emerging Technology FundTechnology FundTechnology FundTechnology Fund Marguerite Patil, Special Assistant Marguerite Patil, Special Assistant Marguerite Patil, Special Assistant Marguerite Patil, Special Assistant to the General Managerto the General Managerto the General Managerto the General Manager Contra Costa Water DistrictContra Costa Water DistrictContra Costa Water DistrictContra Costa Water District Hilton Mission Bay Resort 1775 East Mission Bay Drive San Diego, CA 92109 (619) 276-4010 $375 UWI Member Registration Fee $425 Non-Member Registration Fee HOTEL INFORMATION The Hilton Mission Bay Resort is offering rooms at the discounted rate of $209 per night for conference attendees. Please note the cutoff date to reserve your room is July 31, 2013. Call the Hilton directly at (619) 276-4010 and reference Urban Water Institute to receive the group rate. SPONSORSHIP OPPORTUNITIES AVAILABLE In order to make this conference a success, we invite you to serve as an event sponsor. If you chose to participate, your organization information will be printed in our program agenda, displayed on all conference signs, projected on our presentation screens and appear in our monthly newsletter.