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Home My WebLink About2013-07-11 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, July 11, 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 June 24, 2013 at 8:30 a.m. · Meeting scheduled July 22, 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 June 27, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Workshop Meeting held July 1, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $ 544,608.90. 7.4. Progress Payment No. 5 for the 2012 Waterline Replacement Project, Phase II Recommendation: That the Board of Directors approve Progress Payment No. 5 in the net amount of $112,100.00 to TBU, Inc. for construction of the 2012 Waterline Replacement Project, Phase II, Job No. 2011-20. 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. Sewer Charges Collected on the Tax Roll for Fiscal Year 2013/14 Recommendation: That the Board of Directors approve Resolution No. 13-12 Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2013/14 Tax Roll and Superseding Resolution No. 12-16. 8.6. OPEB Deposit with CERBT Recommendation: That the Board of Directors authorize staff to deposit $175,297 (the District's Annual Required Contribution) to the California Employees' Retirement Benefit Trust (CERBT) for FY 2013/14. 8.7. Engineering Services for the Fairmont Booster Station Upgrade Project Recommendation: That the Board of Directors authorize execution of a Professional Services Agreement with MWH Americas, Inc., in the amount of $549,584, for engineering, planning, design, and construction phase services for the Fairmont Booster Station Upgrade Project, Job No. 2010-11B. 9. REPORTS, INFORMATION ITEMS, AND COMMENTS 9.1. President's Report 9.2. Directors' Report 9.3. Acting General Manager's Report 9.4. General Counsel's Report 9.5. Future Agenda Items and Staff Tasks 10. COMMITTEE REPORTS CONTINUED 10.1. Executive-Administrative-Organizational Committee (Melton/Kiley) · Minutes of meeting held June 25, 2013 at 12:00 p.m. · Meeting scheduled July 16, 2013 at 4:00 p.m. 10.2. Finance-Accounting Committee (Hawkins/Melton) · Minutes of meeting held June 28, 2013 at 8:00 a.m. · Meeting scheduled July 22, 2013 at 12:00 p.m. 10.3. Personnel-Risk Management Committee (Collett/Beverage) · Minutes of meeting held July 9, 2013 at 4:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled August 13, 2013 at 4:00 p.m. 10.4. Planning-Engineering-Operations Committee (Kiley/Hawkins) · Minutes of meeting held July 8, 2013 at 12:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled August 1, 2013 at 3:00 p.m. 10.5. Public Affairs-Communications-Technology Committee (Beverage/Collett) · Minutes of meeting held July 10, 2013 at 4:00 p.m. (To be provided at the next regular Board meeting.) · Meeting scheduled August 5, 2013 at 4:00 p.m. 10.6. Organizational and Efficiency Study Ad Hoc Committee (Beverage/Hawkins) · Meeting scheduled July 17, 2013 at 3:00 p.m. 10.7. YLWD-City of Placentia Joint Agency Committee (Melton/Hawkins) · Meeting to be scheduled. 10.8. YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) · Minutes of meeting held June 19, 2013 at 6:00 p.m. · Meeting scheduled August 21, 2013 at 6:00 p.m. 10.9. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Melton) · Meeting scheduled July 23, 2013 at 4:00 p.m. 11. INTERGOVERNMENTAL MEETINGS 11.1. YL City Council - July 2, 2013 (Kiley) 11.2. MWDOC/MWD Workshop - July 3, 2013 (Melton) 11.3. OCWD Board - July 10, 2013 (Kiley) 11.4. YL Planning Commission - July 10, 2013 (Melton) 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from July 12, 2013 - August 31, 2013 13. CONFERENCES, SEMINARS, AND SPECIAL EVENTS This section of the agenda is for the Board of Directors to authorize Director attendance at the listed events. 13.1. MWDOC Water Policy Forum & Dinner - July 24, 2013 CSDA Annual Conference - September 16-19, 2013 Recommendation: That the Board of Directors authorize Director attendance at these events if desired. 14. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 14.1. Conference with Legal Counsel – Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: ACWA/JPIA, et al. vs. Insurance Company of the State of Pennsylvania, et al. (OC Superior Court - Case No. 00486884) 14.2. Conference with Legal Counsel – Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: City of Anaheim vs. Ana J. Matosantos, et al. (Superior Court of CA, Sacramento – Case No. 34-2013-80001529) 14.3. 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 line break at 1301 North Rose Drive, Placentia CA 92870. Number of Potential Cases: One 14.4. 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 15. ADJOURNMENT 15.1. The next Regular Board of Directors Meeting will be held Thursday, July 25, 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: July 11, 2013 Subject:Citizens Advisory Committee (Beverage) · Minutes of meeting held June 24, 2013 at 8:30 a.m. · Meeting scheduled July 22, 2013 at 8:30 a.m. ATTACHMENTS: Name:Description:Type: 062413_-_CAC_Minutes.docx CAC Mtg Minutes 06/24/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT CITIZENS ADVISORY COMMITTEE MEETING Monday, June 24, 2013 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 24, 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 Rick Buck Oscar Bugarini Sr. Carl Boznanski Fred Hebein Cheryl Spencer-Borden Lindon Baker Joe Holdren Modesto Llanos YLWD DIRECTORS PRESENT YLWD STAFF PRESENT Michael J. Beverage, Director Damon Micalizzi, Public Information Officer 3. PUBLIC COMMENTS Director Beverage passed out the monthly water supply report from Metropolitan Water District. The Committee discussed the absence of much snow pack this year and its potential impact on future supply. 4. PRESENTATIONS 4.1. CA Department of Water Resources Bay Delta Conservation Plan Video Presentation The Committee watched a brief video on the Bay Delta Conservation Plan and discussed the preliminary proposals for the Delta Tunnels Project. 5. DISCUSSION ITEMS 5.1. Status of Budget for FY 2013/14 Director Beverage informed the Committee that the voting on the proposed budget for FY 2013/14 was postponed due to the discovery of some errors on the eve of the Board meeting. He informed the Committee that a Board workshop will be held to discuss the budget on July 1, 2013, with the intent to bring it back to the Board for consideration on July 11, 2013. 2 5.2. OC Water Summit Recap Mr. Baker presented to the Committee a report on May’s OC Water Summit. He discussed some of the attendees and guest speakers highlighting some of the topics including water policy, infrastructure, sustainability, and investing for the future. 5.3. YLWD & City of Yorba Linda Joint Agency Meeting Recap Director Beverage and Chairman Mole reported to the Committee on the joint agency meeting between the District and the City held on June 19, 2013, noting the main topic of discussion at the evening was the proposed developments on the northeast side of the City. Representatives from the OC Fire Authority and OC Planning were in attendance at that meeting. Fire flow and fire prevention measures for those proposed developments were discussed at length, citing the Freeway Complex Fire of 2008 as a point of reference. 5.4. Committee Structure and Bylaws After a brief discussion the Committee suggested that this item be tabled. 5.5. Future Agenda Items OCWD Annexation OCTA Lakeview Grade Separation Project (July 22, 2013) District Organizational & Efficiency Study Desalination 6. ADJOURNMENT 6.1. The meeting was adjourned at 10:47 a.m. The next Citizens Advisory Committee meeting is scheduled to be held Monday, July 22, 2013 at 8:30 a.m. ITEM NO. 7.1 AGENDA REPORT Meeting Date: July 11, 2013 Subject:Minutes of the Board of Directors Regular Meeting held June 27, 2013 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 062713_BOD_-_Minutes.doc BOD Mtg Minutes 06/27/13 Minutes Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RC/RK 5-0 1 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, June 27, 2013, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 27, 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 Stephen Parker, Finance Manager Michael J. Beverage Art Vega, Acting IT Manager Ric Collett Annie Alexander, Executive Secretary Phil Hawkins Bryan Arnado, Instrumentation Technician Damon Micalizzi, Public Information Officer Ruben Maldonado, Water Quality Technician II Derek Nguyen, Water Quality Engineer ALSO PRESENT Brett Barbre, Director, Metropolitan Water District/Municipal Water District of Orange Co. Art Kidman, Partner, Kidman Law LLP Eddy Beltran, Senior Counsel, Kidman Law LLP (Arrived at 8:40 a.m.) 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Conklin requested to add the following item to the agenda as there was a need to take immediate action on this item and the need for action came to staff’s attention subsequent to the agenda being posted. 9.3. District Participation in MWDOC’s Poseidon Huntington Beach Water Desalination CHOICE Program for FY 2013/14 Recommendation: That the Board of Directors consider District participation in the MWDOC CHOICE Program for the Poseidon Project at a cost of approximately $3,200 for FY 2013/14. Director Collett made a motion, seconded by Director Kiley, to add Item No. 9.3. to the agenda. Motion carried 5-0. 2 5. PUBLIC COMMENTS Director Barbre addressed the Board and provided an update on the status of the current water supply, the allocation of MWD’s surplus funds received from increased water sales, the Bay-Delta issue, and the 2014 Water Bond. 6. SPECIAL RECOGNITION 6.1. Introduce Bryan Arnado, Newly Hired Instrumentation Technician Mr. Vega introduced Mr. Arnado and provided the Board with an overview of his background and previous work experience. The Board welcomed Mr. Arnado to the District. Mr. Arnado left the meeting at this time. 7. PUBLIC HEARING 7.1. President Melton opened the Public Hearing for consideration of the District’s 2013 Public Health Goals (PHGs) Report at 8:36 a.m. Mr. Conklin stated that notice of the public hearing had been published in the Orange County Register and Yorba Linda Star on May 30, June 6, 13, 20, 2013. Mr. Nguyen provided the Board with a PowerPoint presentation explaining the purpose of the report and stated that while 5 constituents had been detected that exceeded PHGs and Maximum Contaminant Level Goals (MCLGs), the amounts did not exceed enforceable primary drinking water standards and therefore no treatment actions were required. Mr. Nguyen then responded to questions from the Board related to the results contained in the report and actions homeowners could possibly take to help mitigate the constituents. No written communications from the public were received regarding this matter and no comments from the public were provided. Mr. Conklin stated that staff was recommending that the Board accept and file the report. The Public Hearing was closed at 8:46 a.m. 7.2. 2013 Public Health Goals Report Director Kiley made a motion, seconded by Director Collett, to accept and file the District’s 2013 Public Health Goals Report. Motion carried 5-0. Mr. Nguyen left the meeting at this time. 3 8. CONSENT CALENDAR Director Collett made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 5-0. 8.1. Minutes of the Board of Directors Regular Meeting held June 13, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Minutes of the Board of Directors Workshop Meeting held June 20, 2013 Recommendation: That the Board of Directors approve the minutes as presented. 8.3. Payments of Bills, Refunds and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $727,064.30. 9. ACTION CALENDAR 9.1. BNSF Pipeline License for Lakeview Grade Separation Project Mr. Conklin explained that in accordance with a settlement agreement between YLWD and the Orange County Transportation Authority (OCTA), the District has agreed to relocate a waterline on Lakeview Avenue. The District’s cost for this project has been capped at $250K. Before starting this work at the Burlington Northern Santa Fe (BNSF) crossing, the District is required to execute a Pipeline License with the railway. OCTA has agreed to pay BNSF for the cost of the license ($7,750). Mr. Conklin and Mr. Beltran then responded to questions from the Board regarding the purpose of license. Director Beverage made a motion, seconded by Director Hawkins, to authorize approval and execution of the “Pipeline License” with BNSF Railway Company. Motion carried 5-0. 9.2. Memorandum of Understanding (MOU) with County of Orange for Utilization of AlertOC Mr. Conklin explained that the District’s MOU for this free service would expire at the end of the month. For the District to maintain its access to this system, a renewal agreement with the County of Orange would need to be approved by the Board. Director Hawkins made a motion, seconded by Director Kiley, to authorize the Acting General Manager to execute the Memorandum of Understanding Between the County of Orange and Participants for the Use of the Countywide Mass Notification System. Motion carried 5-0. 4 9.3. District Participation in MWDOC’s Poseidon Huntington Beach Water Desalination CHOICE Program for FY 2013/14 Mr. Conklin explained that the District was not currently participating in MWDOC’s work group for this project. This matter was recently discussed at the recent YLWD/MWDOC/OCWD Joint Agency Committee and the Executive-Administrative-Organizational Committee meetings. Director Barbre provided the Board with an overview of the program and the benefits of participation. Director Beverage made a motion, seconded by Director Kiley, to authorize District participation in MWDOC’s CHOICE Program for the Poseidon Project at a cost of approximately $3,200 for FY 2013/14. Motion carried 5-0. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President’s Report President Melton did not have any comments at this time. 10.2. Directors’ Report OCWD 80th Anniversary Reception – June 21, 2013 (Collett/Kiley) Directors Collett and Kiley attended and noted that there were a lot of former OCWD elected officials present. 10.3. Acting General Manager’s Report Mr. Conklin reminded the Board of the scheduled employee picnic then briefed them on the status of the following: OCWD annexation; sale of the Plumosa property; scheduling of a stakeholders meeting with LAFCO regarding the Northeast area developments; and the status of construction on Hidden Hills Road, the water leak on Alder Avenue, and repairs at the Placentia-Linda Hospital. 10.4. General Counsel’s Report Mr. Kidman notified the Board that staff had received a letter from the City of Anaheim notifying the District that the City was going to involve YLWD in a lawsuit. Legal counsel will be performing an analysis in regards to the potential financial impact on the District. Mr. Kidman then stated that it was not necessary to conduct a Closed Session as noted on the agenda. 10.5. Future Agenda Items and Staff Tasks None. 5 11. COMMITTEE REPORTS 11.1. Executive-Administrative-Organizational Committee (Melton/Kiley) Minutes of the meeting held June 25, 2013 at 12:00 p.m. will be provided at the next regular Board meeting. Next meeting is scheduled to be held July 16, 2013 at 4:00 p.m. 11.2. Finance-Accounting Committee (Hawkins/Melton) Next meeting is scheduled to be held June 28, 2013 at 8:00 a.m. 11.3. Personnel-Risk Management Committee (Collett/Beverage) Minutes of the meeting held June 11, 2013 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled to be held July 9, 2013 at 4:00 p.m. 11.4. Planning-Engineering-Operations Committee (Kiley/Hawkins) Next meeting is scheduled to be held July 8, 2013 at 12:00 p.m. 11.5. Public Affairs-Communications-Technology Committee (Beverage/Collett) Next meeting is scheduled to be held July 10, 2013 at 4:00 p.m. 11.6. Organizational and Efficiency Study Ad Hoc Committee (Beverage/Hawkins) Meeting held June 18, 2013 at 2:00 p.m. Director Beverage reported that the Committee had selected 8 similar agencies (5 from Southern California and 3 from Northern California) for the consultant to use to compare the District against. Next meeting scheduled to be held July 17, 2013 at 3:00 p.m. 11.7. YLWD-City of Placentia Joint Agency Committee (Melton/Hawkins) Minutes of the meeting held June 17, 2013 at 9:30 a.m. were provided in the agenda packet. Next meeting to be scheduled. 6 11.8. YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) Minutes of the meeting held June 19, 2013 at 6:00 p.m. will be provided at the next regular Board meeting. Directors Beverage and Kiley briefly commented on the matters discussed during this meeting. Mr. Conklin reported that the interagency (City of YL, YLWD and OCFA) community information meeting regarding agency enhancements following the Freeway Complex Fire had been scheduled for October 16, 2013. Next meeting is scheduled to be held August 21, 2013 at 6:00 p.m. 11.9. YLWD-MWDOC-OCWD Joint Agency Committee (Beverage/Melton) Next meeting is scheduled to be held July 23, 2013 at 4:00 p.m. 11.10. Citizens Advisory Committee (Beverage) Minutes of the meeting held June 24, 2013 at 8:30 will be provided at the next regular Board meeting. Next meeting is scheduled to be held July 22, 2013 at 8:30 a.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. YL City Council – June 18, 2013 (Collett) Director Collett attended and commented on the northeast developments, the LMAD’s, and the agency’s budget, all of which were discussed during the meeting. He also noted that the Friends property was now up for sale. 12.2. MWDOC Board – June 19, 2013 (Melton/Staff) Director Melton attended and reported that MWDOC had experienced an increase in revenue due to additional water sales. The funds were used to offset various long term expenses. 12.3. OCWD Board – June 19, 2013 (Staff) Mr. Conklin reported that staff had attended this meeting and previously provided the Board with a written report via e-mail. The meeting mostly comprised of a discussion regarding the issue of sea water intrusion. 12.4. YL Planning Commission – June 26, 2013 (Hawkins) Director Hawkins attended and noted that it was a very short meeting. 7 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from June 28, 2013 – August 31, 2013 The Board reviewed the activity calendar and made no changes. 14. CLOSED SESSION 14.1. Conference with Legal Counsel – Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: ACWA/JPIA, et al vs. Insurance Company of the State of Pennsylvania, et al (OC Superior Court – Case No. 00486884) 14.2. Conference with Legal Counsel – Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Related to line break at 1301 North Rose Drive, Placentia CA 92870. Number of Potential Cases: One 14.3. 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 15. ADJOURNMENT 15.1. The meeting was adjourned at 9:35 a.m. A Board of Directors Workshop Meeting to discuss the Draft Budget for FY 2013/14 has been scheduled Monday, July 1, 2013 at 8:30 a.m. The next Regular Board of Directors Meeting will be held Thursday, July 11, 2013 at 8:30 a.m. Steven R. Conklin Board Secretary ITEM NO. 7.2 AGENDA REPORT Meeting Date: July 11, 2013 Subject:Minutes of the Board of Directors Workshop Meeting held July 1, 2013 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 070113_BOD_-_Minutes.doc BOD Mtg Minutes 07/01/13 Minutes Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RC/RK 5-0 1 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Monday, July 1, 2013, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The July 1, 2013 Yorba Linda Water District Board of Directors Workshop Meeting was called to order by President Melton at 8:30 a.m. in the Training Room at the District’s Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Gary T. Melton, President Steve Conklin, Acting General Manager Robert R. Kiley, Vice President Gina Knight, Human Resources Manager Michael J. Beverage Stephen Parker, Finance Manager Ric Collett Art Vega, Acting IT Manager Phil Hawkins Damon Micalizzi, Public Information Officer Annie Alexander, Executive Secretary 4. PUBLIC COMMENTS None. 5. DISCUSSION ITEMS 5.1. Budget Workshop Presentation for FYs 2013/14 thru 2016/17 Mr. Conklin and Mr. Parker provided a PowerPoint presentation outlining various answers to questions posed by members of the Board regarding the draft budget. This included a discussion on multiple topics including: actual, forecasted and budgeted staffing costs; emergency reserve funds; funding for the District’s Asset Management Plan and Capital Improvement Projects; projects funded by bonds; budgeted full-time and part-time positions; increase in sewer revenue in FY 2011/12; water rate history; conflicts of interest and the District’s investment policy. The Board and staff then discussed errors contained in the previous draft budget, the budget review and preparation process, and revisions included in the current draft budget. Mr. Parker subsequently provided an overview of the proposed budgeted positions, the District’s Operating Reserves, the current and proposed Financial Reserves Policy and the Appropriations Limit. The final draft budget will be presented to the Board for consideration at the next regular Board meeting. 2 6. ADJOURNMENT 6.1. The meeting was adjourned at 10:27 a.m. The next Regular Board of Directors Meeting will be held Thursday, July 11, 2013 at 8:30 a.m. Steve Conklin Board Secretary ITEM NO. 7.3 AGENDA REPORT Meeting Date: July 11, 2013 Budgeted:Yes To:Board of Directors Funding Source:All Funds From:Steve Conklin, Acting General Manager Presented By:Stephen Parker, Finance Manager 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 $ 544,608.90. DISCUSSION: The major item is as follows: A check of $112,100.00 to TBU Inc. 2010 Water Line Project. The balance of $ 188,540.17 is routine invoices. The Accounts Payable check register total is $ 300,640.17; Payroll No.13 total is $ 243,968.73 and, the disbursements of this agenda report are $ 544,608.90. 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: CkReg71113_BOD.pdf Check Register Backup Material 13-CS_7.11doc.doc Cap Sheet Backup Material CC_Summary_71113.xls Credit Card Summary Backup Material Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RC/RK 5-0 RC abstained from voting on the Credit Card Payment Summary as he has a financial interest with one of the vendors. Check No.Date Vendor Name Amount Description 61570 07/11/2013 A Plus Awards By Dewey 35.64 NAME PLATE FOR J. DECRISCIO 61566 07/11/2013 Alternative Hose Inc.99.22 HYDRANT FILL HOSE 61567 07/11/2013 Anaheim Wheel & Tire 435.00 MOUNT & BALANCE TIRES 61568 07/11/2013 Anthem Blue Cross EAP 164.01 ANTHEM BC JULY 61569 07/11/2013 Anthony Manzano 170.00 Reimburse Conf exp 61571 07/11/2013 Aqua-Metric Sales Co.1,294.77 GASKET 61572 07/11/2013 Aramark 608.32 UNIFORMS 61584 07/11/2013 ARC 20.00 Pipeline Project 61573 07/11/2013 Associated Laboratories 999.40 LAB ANALYSES 61574 07/11/2013 AT & T - Calnet2 3,144.06 COMM 512-611 ACCT 97777 61575 07/11/2013 Bio Acoustical Corporation 567.50 ANNUAL HEARING TESTING 61576 07/11/2013 Cal Municipal Treasurers Assn 175.00 CERTIFICATION PRG 61637 07/11/2013 CalCard US Bank 11,454.91 Visa Payment 61577 07/11/2013 CDW Government, Inc 1,791.54 CABLES 61578 07/11/2013 Chambers Group Inc.21,590.15 HIDDEN HILL CONSULTING CHGS 61579 07/11/2013 City of Rancho Cucamonga 100.00 CSMFO Joint Meeting on Health 61580 07/11/2013 Cla-Val Co.2,616.56 GASKET & ORING PART 61581 07/11/2013 Clinical Lab. Of San Bern.1,950.00 LAB ANALYSES JUNE 61582 07/11/2013 Coastal Ignition & Controls 2,448.60 CATALYST LAKEVIEW 61587 07/11/2013 COLD WELL BANKER 289.66 Customer Refund 61583 07/11/2013 Coldwell Banker 118.96 Customer Refund 61588 07/11/2013 Culligan of Santa Ana 17.10 WTR SOFTENER SVC 61592 07/11/2013 Dean Criske Trucking 2,177.01 BASE MATERIAL 61589 07/11/2013 Dell Marketing L.P.13,389.78 POWEREDGE R320 61590 07/11/2013 Derek Nguyen 322.87 CONF MILEAGE REIMBURSE 61641 07/11/2013 DINA HUFFMAN 194.88 Customer Refund 61591 07/11/2013 DME Incorporated 271.80 MICA GASKET 61593 07/11/2013 Elite Equipment Inc 1,016.67 TRENCH DIGGER 61594 07/11/2013 Enkay Engineering & Equipment Inc 900.00 ASBESTOS REMOVAL 61595 07/11/2013 Equarius Waterworks 5,184.00 METER 61645 07/11/2013 ETCO HOMES INC JOB# 200625 1,797.63 Customer Refund 61596 07/11/2013 Facility Solutions Group Inc 2,036.71 REPAIR 3 OUTAGE IN BRKRM 61597 07/11/2013 Federal Express 99.30 Fed Ex Charges 61598 07/11/2013 Fry's Electronics 685.84 WRLS MOUSE & ETHERNET 61599 07/11/2013 Graybar Electric Co 3,814.16 CABLE 61600 07/11/2013 Heritage Investment Group 1 2,236.00 JOB# 2009-10 BILL OF SALE 61601 07/11/2013 International Society of Automation (ISA)110.00 ISA RENEWAL 61605 07/11/2013 J & S Construction 3,825.00 CONCRETE SPANDREL 61606 07/11/2013 J. Todd Howard 283.54 Fry's Reimbursement 61602 07/11/2013 Jackson's Auto Supply - Napa 702.91 VEHICLE PARTS 61603 07/11/2013 John Bogosian 414.62 TOOLS 61604 07/11/2013 John Deere Landscapes 13.19 GRASS SEEDS 61643 07/11/2013 JOSEPHINE LOIACONO 30.95 Customer Refund 61607 07/11/2013 Killingsworth Gear 6,958.22 REBUILD GEAR DRIVE 61608 07/11/2013 Kimball Midwest 452.52 AIR BRAKES 61635 07/11/2013 Konica Minolta Business 1,110.47 PHONE SERVICE 61636 07/11/2013 Konica Minolta Business 591.53 COPY CHARGES C224 61609 07/11/2013 Layne Christensen Company 4,578.00 MOTOR REPAIR 61610 07/11/2013 Liebert Cassidy Whitmore 6,834.10 GENERAL HR ISSUES JUNE 61640 07/11/2013 MARGARO MORALES FIGUEROA 43.90 Customer Refund 61611 07/11/2013 Marina Landscape, Inc 1,800.00 TREE TRIMMING & YARD WORK Yorba Linda Water District Check Register For Checks Dated: 6/28/2013 thru 7/11/2013 61642 07/11/2013 MARY WOODS 34.44 Customer Refund 61612 07/11/2013 Mc Fadden-Dale Hardware 205.40 JUNE PURCHASE 61613 07/11/2013 Minuteman Press 81.00 BUSINESS CARDS J.DECRISCIO 61614 07/11/2013 MR2 Solutions Inc 7,500.00 STORAGE CONSOLIDATION 61615 07/11/2013 Muzak LLC 73.74 JULY INVOICE 61616 07/11/2013 Nickey Kard Lock Inc 5,299.10 FUEL JUNE 61617 07/11/2013 Nicole Dalton 257.66 EDU REIMBURSE WTE101 61618 07/11/2013 Orange County Register 594.60 PUBLIC NOTICE/OPS 61619 07/11/2013 Powerstride Battery 178.92 GROUP BATTERY 61620 07/11/2013 Process Solutions, Inc.3,655.62 ACID WASH 61621 07/11/2013 Prudential Group Insurance 3,168.94 L/T DISABILITY JULY 61622 07/11/2013 Quinn Power Systems Associates 33,273.76 INSTL TOOL, WASHER & BOLTS 61639 07/11/2013 RALPH L DANKER 10.57 Customer Refund 61623 07/11/2013 Sancon Engineering Inc.11,984.00 Sewer Slip lines 61624 07/11/2013 Selman Chevrolet Company 545.23 SWITCH for UNIT #144 61625 07/11/2013 Shaw HR Consulting 2,055.00 HR CONSULTING 61626 07/11/2013 South Coast AQMD 1,700.24 EMISSION FEE INSTALLMENT 61627 07/11/2013 Southern Calif Edison Co.480.04 P.O.BOX 309 LOCATION 61628 07/11/2013 Southern Calif Gas Co.5,207.64 FAIRMONT LOCATION 61629 07/11/2013 Staples Business Advantage 1,220.38 MICROSOFT TABLET 61638 07/11/2013 State Of CA - EPA 175.00 2013 VERIIFICATION 61630 07/11/2013 Step Saver Inc 612.39 COURSE SALT 61631 07/11/2013 Stephen Parker/ Petty Cash 620.76 CSMFO Joint Meeting on Health 61632 07/11/2013 Sunrise Medical Group 359.87 Emp Service Form 61633 07/11/2013 TBU Inc 112,100.00 2010 Water Line Project-Phase II 61634 07/11/2013 Time Warner Cable 999.00 CABLE SVC CHARGES JULY 61586 07/11/2013 VAN GOLD DEVELOPEMENT 110.31 Customer Refund 61644 07/11/2013 VAN GOLD DEVELOPEMENT 339.69 Customer Refund 61585 07/11/2013 ZEFENG YOU 56.29 Customer Refund Total 304,865.59 . July 11, 2013 CHECK NUMBERS: Void Checks 61523-61524 $ (4,225.42) Computer Checks 61566 -61645 $ 304,865.59 $ 300,640.17 TOTAL OF CHECKS $ 300,640.17 PAYROLL NO. 13: Direct Deposits $ 155,545.10 Third Party Checks 5608-5619 $ 45,834.59 Payroll Taxes $ 42,589.04 TOTAL OF PAYROLL $ 243,968.73 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $ 544,608.90 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF JULY 11, 2013 ==================================================================. Date Vendor Name Amount Description 06/10/13 Farmer Boys 21.59 Accounting Lunch Meeting 06/10/13 Home Depot 11.23 Supplies Pressure Test 06/11/13 Orvac Electronics 34.64 Battery for Fire Panel 06/12/13 Southwest 292.60 Airfare for Gina & Bryan to CalPERS 06/12/13 Southwest 95.30 Airfare for Bryan to Yrly NEOGOV 06/12/13 Public Retirement Jnrl 380.00 Reg for 23rd Annual CalPERS 06/13/13 Amazon 38.88 Games used at Co. Picnic 06/13/13 Amazon 125.16 Games used at Co. Picnic 06/14/13 Steer Inn 65.21 Lunch Meeting Consolidated DATA 06/15/13 Amazon 90.18 Games used at Co. Picnic 06/17/13 Placentia Disposal 480.66 May Invoices 06/17/13 Wells Supply 4,955.57 May Invoices 06/17/13 Trench Shoring 450.00 Plywood 06/17/13 Home Depot 214.99 Shoring Lumber 06/18/13 Verizon 2,084.65 May Wireless Acct 970389706 06/18/13 Praxir 134.51 Welding Supplies 06/19/13 Target 36.63 Can for Kids goodie bags 06/19/13 99 Cents 20.52 Various items for kids goodie bags 06/19/13 CVS Pharmacy 21.55 Bubble Stuff for kids goodie bags 06/19/13 Brown & Caldwell 200.00 Safety & Training Recruitment Adv. 06/19/13 C.Wells 367.20 Hydrant Parts for Repairs Cal Card Credit Card U S Bank 06/05/2013- 06/24/13 06/19/13 C.Wells 367.20 Hydrant Parts for Repairs 06/20/13 Blue Agave Restaurant 70.70 Affordable Care Act Lunch Discussion 06/20/13 Biard & Crocket 60.57 Repair water heater in Bld#2 06/20/13 C & H 436.97 Storage boxes for Warehouse 06/24/13 Chino Hill 150.00 Fuel for Unit# 161 06/24/13 C.Wells 615.60 Hydrant Parts TOTAL11,454.91 ITEM NO. 7.4 AGENDA REPORT Meeting Date: July 11, 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. 5 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. 5 in the net amount of $112,100.00 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. 5, in the amount of $118,000.00 for completed work through June 30, 2013. During this period, the contractor mobilized to the Hidden Hills location, set up traffic control, excavated and then removed the existing pipeline coming from the Hidden Hills Pump Station. The contractor then installed approximately 100 lineal feet of new steel pipeline, four new valves, completed four tie-ins to existing pipelines, backfilled and then paved the road. 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. 5 is $118,000.00 (8.4% of the total contract amount), less 5% retention of $5,900.00 for a net payment of $112,100.00. If approved, total payments to date including retention will be $964,470.21 (68.5% of the total contract amount). As of June 30, 2013, 150 calendar days were used (40.5% of the contract time). Staff reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 5 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 four progress payments to date for this project, the last of which was approved on June 13, 2013. ATTACHMENTS: Name:Description:Type: TBU_Phase_II_Waterline_Progress_Pay_Request_5.pdf TBU Progress Payment No. 5 for 2012 Waterline Phase II Project Backup Material Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RC/RK 5-0 ITEM NO. 8.1 AGENDA REPORT Meeting Date: July 11, 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. The Board discussed the proposed Financial Reserves Policy at the Budget Workshop on July 1, 2013. ATTACHMENTS: Name:Description:Type: Resolution_13- 07_Adopting_Financial_Reserves_Policy.doc Resolution Backup Material Financial_Reserves_Policy_-_FY_13.14.docx Reserve Policy Backup Material Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RK/PH 5-0 Roll Call 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 11, 2013 and Resolution No. 12-12 is hereby rescinded on July 11, 2013. PASSED AND ADOPTED this 11th day of July 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 July 11, 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. July 11, 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. July 11, 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. July 11, 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: July 11, 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 Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 PH/RC 5-0 Roll Call 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 11th day of July 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: July 11, 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, to reclassify five (5) existing positions and change the job titles of two (2) 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[1].docx Resolution 13-09 Backup Material Reso_13-09_Exhibit_A_Authorized_Positions_FY_2013- 2014_-_FINAL[1].docx Budgeted Positions FY 2013-2014-Exhibit A Backup Material Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RC/RK 5-0 Roll Call 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 11, 2013. Resolution No. 13-09 Adopting the Budgeted Positions for FY 2013/14 2 PASSED AND ADOPTED this 11th day of July 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 Exhibit "A" Resolution No. 13-09 Budgeted Positions for 2013/2014 Effective July 11, 2013 Budgeted Budgeted Salary as of Proposed as of Range Position Classification 11/8/2012 Change 7/11/2013 15 Customer Service Rep I 1 1 16 Meter Reader I 2 2 17 Customer Service Rep II 1 1 Accounting Assistant I 1 1 Maintenance Worker I 9 9 Mechanic I 0 0 Engineering Secretary 1 1 Operations Secretary 0 0 18 Meter Reader II 2 2 19 Customer Service Rep III 2 2 Storekeeper 0 0 Operations Assistant 1 1 20 Engineering Technician I 0 0 Water Quality Technician l 0 0 Maintenance Dist. Operator II 8 8 21 Facilities Maintenance 1 1 Accounting Assistant II 1 1 Mechanic II 1 1 22 Water Quality Technician lI 1 1 Information Systems Tech I 1 1 23 Maintenance Dist. Operator III 4 4 Meter Services Lead 1 1 Personnel Technician 1 -1 0 Human Resources Technician 0 1 1 Plant Operator II 3 3 Mechanic III 1 1 24 Construction Inspector 1 1 Engineering Technician II 2 2 Information Systems Tech II 1 -1 0 25 Human Resources Analyst 1 1 Instrumentation Technician 1 1 26 GIS Administrator 1 1 Project Engineer 2 -2 0 Sr. Maintenance Dist. Operator 4 4 Sr. Plant Operator 1 1 Sr. Construction Inspector 1 1 Sr. Fleet Mechanic 1 1 27 Customer Service Supervisor 1 1 Project Coordinator 0 1 1 28 Management Analyst 1 1 Construction Project Supervisor 0 1 1 Programmer Analyst 0 1 1 29 Safety and Training Officer 0 0 Sr. Project Engineer 0 0 30 Water Maintenance Superintendent 1 1 Sr. Accountant 1 1 SCADA Administrator 1 1 Public Information Officer 1 1 IS Administrator 1 1 Safety and Training Coordinator 0 1 1 31 Chief Plant Operator 1 -1 0 Water Production Superintendent 0 1 1 Water Quality Engineer 1 1 32 Executive Secretary 1 1 34 Sr. Project Manager 1 1 37 Human Resources and Risk Manager 1 1 Finance Manager 1 1 Operations Manager 1 1 Engineering Manager 1 1 IT Manager 1 1 Salary General Manager 1 1 Set by Board Total 76 1 77 Salary Range Position Classification 1-11 Public/Governmental Affairs Intern 0.5 0.5 W Human Resources Clerk 0 0.5 0.5 X 15 Records Management Clerk 0.5 0.5 Y 24 GIS Technician 0.5 0.5 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: July 11, 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. As a result of the delay in approval of the budget, changes were made to the document for asthetics and informational purposes. The numbers that changed from what the Board had available to approve on June 13th included an updated forecast using May 31 actual numbers and an $8,000 addition to Data Processing in the IT department per the PRM Committee's request. 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. The document was further revised as presented at a budget workshop on July 1, 2013. ATTACHMENTS: Name:Description:Type: Resolution_13-10.docx Resolution Backup Material FY_2013-14_Budget_Document_FINAL_Part1.pdf Budget 1 of 3 Backup Material FY_2013-14_Budget_Document_FINAL_Part2.pdf Budget 2 of 3 Backup Material FY_2013-14_Budget_Document_FINAL_Part3.pdf Budget 3 of 3 Backup Material Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RC/MB 5-0 Roll Call 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 11th day of July 2013, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: 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 1 Table of Contents LETTER OF TRANSMITTAL 3 BUDGET OVERVIEW Resolution 12-14 Adopting FY 2013/14 Budget 13 GFOA Distinguished Budget Award FY 2012/13 14 Mission & Vision Statement 15 Core Values Statement 16 Strategic Goals Statement 17 Strategic Plan 18 Profile of the District 29 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 50 YLWD Service Area 52 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 Projected Reserves & Funding Levels 66 Five Year Financial Projections 67 Fund Balance History 73 2 Debt Administration 74 Employees per Capita 75 Residential Meter Charge Comparison 76 CAPITAL PROJECTS Capital Improvement Plan 79 Capital Projects Summary 81 Vehicle Equipment and Capital Outlay 85 DEPARTMENT SUMMARIES Board of Directors 88 Administration 95 Engineering 107 Finance 119 Human Resources 135 Information Technology 149 Operations 165 APPENDIX List of Acronyms 186 Glossary of Terms 189 Financial Policies 194  Operating Budget Policy 195  Revenues and Expenditures Policy 197  Financial Reserves Policy 199  Investment Policy 204 3 Letter of Transmittal 4 To the Honorable Board of Directors: We are pleased to present 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 to the Board of Directors and the general public. The main objective of the proposed Yorba Linda Water District FY 13 ‐14 budget is to provide adequate funding for all District activities, considering the goals of maintaining exemplary customer service and meeting all regulatory requirements in a financially prudent manner. The proposed budget meets this objective by incorporating operating cost reductions and the use of available financial reserves, projecting realistic operating revenues without a supplement from additional rate increases. The following are upcoming goals as outlined by the District’s Strategic Plan, as well as 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. Specific goals and objectives were updated based on level of achievement during FY 2011/12. At the beginning of FY 2012/13 however, the Board of Directors, opted to take a more progressive approach to public service, through the authorization of an Operations and Efficiency Study of the agency. The independent assessment of the District is aimed at taking the organization to the next level, with an eye to the future. The study will offer insight on best practices in the industry, explore potential cost savings measures and exploit possible redundancies in our business model. In short, this study will not only point out areas to improve but also emphasize the strong points of the District. Based on the findings and recommendations of the study, the District could undergo some organizational adjustments as well as possible changes in direction and focus. As such, the District has opted to extend the FY 11/13 Strategic Plan Goals for another fiscal year. 5 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 Distr ict 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 • 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 and Commenced Construction of Yorba Linda Booster Station Project • Commence Design of Fairmont Booster Pump Station Replacement Other District Activities & Accomplishments • Received Positive Auditors Letter for FY 2011/12 • Received State and National Recognition for CAFR • Received State and National Recognition for FY 2012/13 Budget document • Executed Multi-Year Memorandum of Understanding (MOU) • Completed CEQA Process for OCWD Annexation • Launched new District 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 $1,694,685 for the water and sewer enterprises. These figures include total depreciation expenses (a non-cash expense) in the amount of $6,863,063. Please refer to the Summary of Total Revenue and Expenses (Water & Sewer) for supporting information (pg.55). 6 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 YLW D 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 $1.2 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 for FY 2013/14. The increased budget is based on the current year’s forecasted usage of 20,700 acre feet. 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 Certificate s 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 1.10%. 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. 7 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 Affairs Enhancements • Effectively Use Broad-Spectrum Communication Opportunities • Encourage Continued Employee Training in Leadership and Technology. • Complete Operations & Efficiency Study Capital Improvement & Replacement Projects • Complete Construction of Yorba Linda Booster Station Project • Complete Lakeview Grade Separation Project FY 2013/14 Summary Budget Revenues Total water and sewer revenues budgeted for upcoming FY 2013/14 amount to $31.8 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 b y $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. 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, 8 for water, which is comprised of fluctuating income, such as various rebates and refunds is expected to increase by $74,000. 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 up coming FY 2013/14 is $34.7 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: 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 MWD rates, the District is b udgeting 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 20,700 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 fisc al 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. 9 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 emplo yees 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; and Tuition Reimbursement. 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 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 CalPE RS 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 emplo yees 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. 10 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. 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 Distr ict’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 $3.5 million at the end of the fiscal year. The Sewer Enterprise is budgeted with a FY 2 013/14 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 $505,000 at the end of the fiscal year. 11 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 fu nding 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 co mpleted 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. The coming years will continue to pose challenges for water providers. For instance, it is uncertain if the challenges facing the Sacramento -San Joaquin Bay Delta will be addressed and at what cost. Serious challenges also jeopardize water coming from the Colorado River. With this in mind, our success as an organization is vastly enhanced by the practices and policies put in place by the Board of Directors to ensure the strength and stability of the District even as we move forward through uncertain times. We are fully confident that with these policies and practices, supported by dedicated and talented staff, we will achieve continued success as an organiza tion and, thus, assure the well-being of the people we serve. In conclusion, this budget reflects the vision of the Board of Directors of the Yorba Linda Water District, its management, and its employees. We will continue to strive to make improvements in our budget processes, including an extensive review and analysis of projections for revenues, expenditures, capital projects, and reserves. To the Board of Directors, we acknowledge and appreciate their continued support and direction in achieving excellence in financial management. Respectfully Submitted, Steve Conklin Acting General Manager 12 Budget Overview 13 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 11th day of July 2013, by the following called vote: Gary Melton, President Yorba Linda Water District 14 GFOA Distinguished Budget Award FY 2012/13 15 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.” 16 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. 17 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 a chieving the identified initiatives, which, in turn, achieve the identified goals. Five goals were identified as the most critical challenges for the Dis trict to address in the next year: Goal CP: Community Partnership Goal FR: Fiscal Responsibility Goal OE: Operational Efficiency Goal SR: Service Reliability Goal WE: Workforce Engagement 18 Goal CP: Community Partnership As a public agency, the District is expected to demonstrate the prudent use of public funds. The District’s services should provide tangible benefits that are of value to the community. Strengthening existing relationships with key stakeholders, including customers and agency partners, while demonstrating our dedication to transparency in the most professional manner, is paramount. Initiatives Strategies Enhance Resources for Public Information & Governmental Affairs Division Develop a Public Relations Master Plan with Measurable Goals Have Board of Directors and YLWD Staff Attend More Events and Inter-governmental Meetings within the Local Community Continue to Support Regional Training and Multi-Agency Workgroups through the Joint Use of the Administration Building Effectively Use Broad Spectrum Communication Opportunities CP 1: Increase Brand Recognition within the Community CP 2: Increase Public Awareness of Water and Wastewater Related Issues CP 1-A CP 1-B CP 1-C CP 1-D CP 1-E CCP 1: Increase Brand Recognition within the Community 19 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 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 CP 2: Increase Public Awareness of Water and Wastewater Related Issues CP 2-A CP 2-B CP 2-C CP 2-D 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 CP 2-E 20 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 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 FR 1-A FR 1-C FR 1: Maintain Fiduciary Responsibility FR 2: Increase Reserve Funding FR 2-A FR 2-B FR 2-C FR 3-A FR 3: Identify and Develop Additional Revenue Options FR 1-D FR 1-E FR 1-B FR 1-F 21 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 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 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: Optimize Use of Existing Technologies FR 3-B FR 4-A FR 4-B FR 4: Provide an Equitable Rate Structure FR 3-C 22 Identify the Current Functionality of Existing Technology and Determine if it is Being Utilized to Full Capacity Evaluate How Each Department Might Make Further Use of Existing Technology Provide Support and Encourage Employee Training Improve connectivity for Computerized Maintenance and Management System (CMMS) Improve Internet and Intranet Access Availability by I ncreasing Bandwidth Integrate GIS with Hydraulic Model, CMMS, Valve Exercise, and Hydrant Flushing 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 OE 1-A OE 1-B OE 1-C OE 1-D OE 1-E OE 1-F OE 1-G OE 1-H OE 1-I OE 1-J OE 1-L OE 1-M OE 1-K 23 Identify Core Inefficiencies Develop Measurable Productivity Goals Engage Employees in Methods of Addressing Inefficiencies 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 2: Address Inefficiencies Identified in the Self-Assessment Survey OE 2-A OE 2-B OE 2-C OE 3: Consider Utilization of a Peer Review Survey OE 3-A OE 3-B OE 3-C 24 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 as set 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 25 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 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 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 26 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 Encourage Staff Participation in Professional Organizations and Local Civic Groups Execute Timely and Consistent Employee Performance Evaluations 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 WE 1-F WE 1-G 27 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 28 29 Profile of the District Independent, Trusted and Reliable Service for more than 100 Years 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's drinking water comes from two sources: local groundwater and "i mported water". Approximately 50% comes from local groundwater and 50% comes from "imported water" from the Colorado River via the Colorado R iver Aqueduct and from Northern California via the State Water Project. The blending of these sources varies according to your geographic location within the District. YLWD currently operates 10 wells within our service area that pump water from the Orange County Groundwater Basin. The groundwater basin is managed by the Orange County Water District (OCWD), who allows more than 20 cities and water agencies, including YLWD, to withdraw water from the basin, via wells, at a cost of approximately $276 per acre-foot. OCWD sets a maximum percentage of water that can be pumped from the ground, the Basin Production Percentage (BPP). The remainder of YLWD's drinking water is "imported" water, purchased through the Municipal Water District of Orange County (MWDOC). MWDOC, in turn, purchases 30 water from the State Water Project and the Colorado River Aqueduct, as part of a consortium of 26 agencies, through the Metropolitan Water District of Southern California (MWD). The cost of imported water to the retail agencies, such as YLWD, is almost four times the cost of pumping out of the groundwater basin. Imported water is treated at MWD's Diemer Filtration Plant, located on Valley View and Diemer Road in Yorba Linda. The majority of YLWD's operating expenses are variable water costs, which include purchasing water from both OCWD and MWDOC, as well as electrical and natural gas costs to pump water up to the highest elevations. The District has a unique water delivery system to provide service to homes ranging from 250 to 1,390 feet above sea level, from the Chino Hills to the Santa Ana River. The District maintains ten primary hydraulic "pressure zones" and fourteen water storage reservoirs. Almost ten years ago the District began a $95 million dollar “fast track ” capital improvement program aimed at an infrastructural overhaul to ensure water reliability for our customers, and to meet current and anticipated consumption and financial demands. The program includes the construction of water wells, reservoirs, pipelines and booster pumping stations as well as various other system improvements. In addition, the ability to access groundwater provided by these upgrades serves to better prepare the District in the event of scheduled and unscheduled MWD shutdowns. 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 i s forecasted to provide 20,700 acre-feet. 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 32 Organizational Chart 33 Personnel Trends by Position Position/Title 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 ADMINISTRATION Assistant General Manager 0.5 0.5 --- Executive Secretary 1 1 1 1 1 General Manager 1 1 1 1 1 Legislative Affairs Intern #-0.5 0.5 0.5 - Management Analyst 1 1 1 1 1 Public Affairs Intern -0.5 0.5 0.5 0.5 Public Information Specialist 1 ---- Public Information Officer -1 1 1 1 Records Management Clerk #----0.5 Total Administration 5 5.5 5 5 5 ENGINEERING Contruction Inspector 1 1 1 1 1 Contruction Project Supervisor ----1 Engineering Manager 1 1 1 1 1 Engineering Secretary 1 1 1 1 1 Engineering Technician II 3 3 2 2 2 Project Coordinator ----1 Project Engineer 2 2 2 2 - Senior Construction Inspector 1 1 1 1 1 Senior Project Manager 1 1 1 1 1 Water Quality Engineer 1 1 1 1 1 Water Quality Technician II *1 1 1 1 1 Total Engineering 12 12 11 11 11 * Under filled with Water Quality Technician I prior to FY 2013/14 # Legislative Affairs Intern replaced with Records Management Clerk position 34 Position/Title 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 FINANCE Accounting Assistant I 1 1 1 1 1 Accounting Assistant II 1 1 1 1 1 Customer Service Rep I 1 1 1 1 1 Customer Service Rep II 1 1 1 1 1 Customer Service Rep III 2 2 2 2 2 Customer Service Supervisor 1 1 1 1 1 Finance Director 1 1 --- Finance Manager --1 1 1 Meter Reader I 2 2 2 2 2 Meter Reader II 2 2 2 2 2 Meter Services Lead -1 1 1 1 Meter Services Representative 1 ---- Senior Accountant 1 1 1 1 1 Storekeeper 1 1 --- Total Finance 15 15 14 14 14 HUMAN RESOURCES Human Resources Analyst 1 1 1 1 1 Human Resources Clerk ----0.5 Human Resources Manager 1 ---- Human Resource & Risk Mananger -1 1 1 1 Human Resource Technician ----1 Personnel Technician 1 1 1 1 - Safety & Training Coordinator ----1 Total Human Resources 3 3 3 3 4.5 Note: Prior to Fiscal Year 2009/10, Human Resources was budgeted in the Administration Department 35 Approved via Resolution 13-09 by the Board of Directors on July 11, 2013 Position/Title 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 INFORMATION TECHNOLOGY GIS Administrator -1 1 1 1 GIS Technician 1 0.5 0.5 0.5 0.5 Information Systems Administrator 1 1 1 1 1 Information Systems Technician I 1 1 1 1 1 Information Systems Technician II 1 1 1 1 1 Instrumentation Technician 1 1 1 1 1 IT Director 0.5 0.5 --- IT Manager --1 1 1 SCADA Administrator 1 1 1 1 1 Total Information Technology 6.5 7 7.5 7.5 7.5 OPERATIONS Chief Plant Operator 1 1 1 1 1 Facilities Maintenance 1 1 1 1 1 Maintenance Distribution Operator II 7 7 8 8 8 Maintenance Distribution Operator III 4 4 4 4 4 Maintenance Worker I 8 8 9 9 9 Mechanic II 1 1 1 1 1 Mechanic III 1 1 1 1 1 Operations Assistant 1 1 --- Operations Assistant/Storekeeper --1 1 1 Operations Manager 1 1 1 1 1 Plant Operator II 3 3 3 3 3 Sr Maintenance Distribution Operator 4 4 4 4 4 Senior Fleet Mechanic 1 1 1 1 1 Senior Plant Operator 1 1 1 1 1 Water Maintenance Superintendant 1 1 1 1 1 Total Operations 35 35 37 37 37 DISTRICT TOTAL (FTE)76.0 77.5 77.5 77.5 79.0 36 Personnel Trends by Department Department 2009-10 2010-11 2011-12 2012-13 Proposed 2013-14 Administration 5 5.5 5 5 5 Engineering 12 12 11 11 11 Finance 15 15 14 14 14 Human Resources 3 3 3 3 4.5 Information Technology 6 7 7.5 7.5 7.5 Operations 35 35 37 37 37 DISTRICT TOTALS 76 77.5 77.5 77.5 79 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 194. 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 provi ding 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. 38 Reserve Policy This policy represents the public affirmation of the Board’s commitment to the financial prudence and careful stewardship of community assets. This policy covers: Operating Reserve (target level of 8%-17% of annual operating budget); Emergency Reserve (target level between $1 and $4 million for water fund and $250,000 and $1 million for sewer fund); Capital Replacement Reserve (target level of $1.82 million for water fund less money set aside for Maintenance Reserve and $345,000 for sewer fund); Maintenance Reserve (target level of $200,000); Debt Service Reserve (target level of highest annual debt service payment); Employee Liabilities Reserve (annual contribution of $100,000) and US Bank 2008 COP Reserve (target level of $2,147,096). These funds are designated by the District’s Board to carry out specific purposes to ensure prudent management of District’s financial resources and are used by District’s staff as parameters within which the Board expects staff to operate. The Financial Reserve Policy has three primary goals:  To preserve the financial stability of the District against present and future uncertainties in an ever-changing environment  To maintain the District’s bond ratings in the capital markets and sustaining debt covenant compliance  To provide adequate funding to meet the District’s short -term and long-term plans and commitments to its customers All reserve balances will be subject to review by the Board of Directors on an annual basis as part of the budget process. Investment Policy The District annually reviews and updates the District’s Investment Policy. It is the policy of the District to invest funds in a manner that will provide the highest investme nt 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 Co de Section 53600.3. 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 c osts 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. 40 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 app roval. 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 authoriz ed 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. 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 budge t. 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. 42 Budget Calendar DATE BOARD/COMMITTEE SCHEDULE JANUARY January 15, 2013 Manager's Meeting Discuss Budget Calendar and Process Personnel & Capital budget discussion January 28, 2013 Finance-Accounting Committee Review the Budget Calendar FEBRUARY February 5, 2013 Manager's Meeting Personnel & Capital budget discussion February 7, 2013 Planning-Engineering-Operations Committee Capital Improvement Projects budget (v 0.5) February 25, 2013 Finance-Accounting Committee Finance budget (v 1.0) February 27, 2013 Exec-Admin-Organizational Committee Board of Directors and Administration budget (v 1.0) MARCH March 4, 2013 Public Affairs-Communications-Tech Committee IT & Public Affairs budget (v 1.0) March 7, 2013 Planning-Engineering-Operations Committee Engineering and Operations budget (v 1.0) Vehicle Equipment & Capital Outlay budget (v 1.0) March 12, 2013 Personnel-Risk Mgmt Committee HR budget (v 1.0) March 19, 2013 Exec-Admin-Organizational Committee Administration budget (v 2.0) March 25, 2013 Finance-Accounting Committee Draft Budget (v 1.0) Reserve policy analysis (v 1.0) March 27, 2013 Personnel-Risk Mgmt Committee Labor and benefits (v 1.0), HR budget (v 2.0) APRIL April 2, 2013 Public Affairs-Communications-Tech Committee IT budget (v 2.0) April 8, 2013 Planning-Engineering-Operations Committee Engineering and Operations budget (v 2.0) Capital Improvement Projects budget (v 2.0) Vehicle Equipment & Capital Outlay budget (v 2.0) April 9, 2013 Personnel-Risk Mgmt Committee HR budget (v 3.0), Labor and Benefits (v 2.0) April 18, 2013 Board Workshop - Budget Draft budget presented to Board for review and discussion Reserve policy discussion April 22, 2013 Finance-Accounting Committee Draft reserve policy MAY May 23, 2013 Board of Directors Draft Budget (Full Board) JUNE June 13, 2013 Board of Directors Budget review and adoption (Full Board) Reserve policy adoption 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. 44 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 pr ojected 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. 45 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. 46 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. 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 to 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 48 Rate History * Based on a 1 inch meter Monthly Commodity Minimum Monthly Commodity Minimum Allowance Charge Monthly Allowance Charge Monthly Year (CCF)(CCF)Charge Year (CCF)(CCF)Charge 1960 20 $0.06 $3.50 1987 5 $0.59 $5.95 1961 20 $0.06 $3.50 1988 5 $0.59 $5.95 1962 20 $0.06 $3.50 1989 5 $0.59 $5.95 1963 20 $0.06 $3.50 1990 5 $0.61 $6.15 1964 10 $0.10 $3.50 1991 5 $0.66 $6.65 1965 10 $0.10 $3.50 1992 5 $0.76 $7.65 1966 10 $0.10 $3.50 1993 0 $0.92 $4.65 1967 10 $0.10 $3.50 1994 0 $0.98 $4.65 1968 8 $0.12 $3.50 1995 0 $0.98 $4.95 1969 6 $0.14 $3.50 1996 0 $0.98 $4.95 1970 6 $0.16 $3.50 1997 0 $0.98 $4.95 1971 6 $0.16 $3.50 1998 0 $0.98 $4.95 1972 6 $0.16 $3.50 1999 0 $0.98 $4.95 1973 6 $0.18 $3.50 2000 0 $1.03 $5.20 1974 6 $0.20 $3.50 2001 0 $1.03 $5.20 1975 6 $0.20 $3.50 2002 0 $1.13 $5.70 1976 6 $0.24 $3.50 2003 0 $1.33 $5.70 1977 6 $0.24 $3.50 2004 0 $1.33 $6.70 1978 6 $0.27 $3.50 2005 0 $1.57 $7.92 1979 6 $0.27 $3.50 2006 0 $1.57 $7.92 1980 6 $0.30 $3.50 2007 0 $1.57 $7.92 1981 6 $0.30 $3.50 2008 0 $1.79 $8.35 1982 6 $0.30 $3.50 2009 0 $2.52 $10.20 1983 6 $0.30 $3.50 2010 0 $2.52 $11.73 1984 6 $0.39 $3.50 2011 0 $2.52 $11.73 1985 5 $0.45 $4.00 2012 0 $2.57 $12.60* 1986 5 $0.57 $5.85 2013 0 $2.64 $14.67* 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 50 Demographics Yorba Linda Water District encompasses an area of approximately 22 square miles of rural hills and valleys 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 distinguished for having larger than average residential lots with more than 100 miles of horse trails winding throughout the City. In a 2010 report, 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. A view of the District from atop Fairmont Reservoir 51 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. The ethnic 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 $800,000 City of Yorba Linda Orange County State of California City of Yorba Linda Median Comparisons Median Family Income Median Home Value 75% 14% 9% 1% 1% City of Yorba Linda Demographics White Hispanic Asian African-American Other 52 YLWD Service Area The District’s service area overlaps multiple cities encompassing several County governed pockets. Projections from the Southern California Association of Governments estimate that the population within the District’s service area will grow from approximately 70,000 to nearly 98,000 by the year 2035. 53 Ten Largest Customers Most Recent and Ten Years Ago FY 2012/13 Customer Name Business Type Annual Revenues % of Actual Revenues 1 City of Yorba Linda Government 1,862,792$ 6.35% 2 Placentia Yorba Linda USD Government 286,151$ 1.05% 3 Fairmont Hill Community Assoc.Homeowner's Assoc.117,255$ 0.43% 4 Kerrigan Ranch II Community Assoc.Homeowner's Assoc.105,582$ 0.39% 5 Yorba Linda Villages Homeowner's Assoc.100,875$ 0.37% 6 Archstone Yorba Linda Homeowner's Assoc.95,474$ 0.35% 7 The Hills at Yorba Linda Homeowner's Assoc.93,273$ 0.34% 8 Lake Park Mobile Home Community Homeowner's Assoc.69,249$ 0.25% 9 Mt. San Antonio Home Owners Assoc.Homeowner's Assoc.53,947$ 0.20% 10 Woodgate Condominiums Homeowner's Assoc.51,381$ 0.19% 2,835,978$ 8.91% FY 2001/02 Customer Name Business Type Annual Revenues % of Actual Revenues 1 City of Yorba Linda Government 1,915,252$ 14.99% 2 Saba Petroleum Manufacturer 175,921$ 1.38% 3 Tac West Inc Manufacturer 98,368$ 0.77% 4 St Francis of Assissi Private School 97,005$ 0.76% 5 Shigemi Muranaka Nursery Retail 78,760$ 0.62% 7 Placentia Unified School Government 31,610$ 0.25% 6 Sunset Tropicals Nursery Retail 30,969$ 0.24% 8 Costco Warehouse Retail 30,308$ 0.24% 9 Excell Circuits Manufacturer 27,840$ 0.22% 10 YL Country Club Private Club 25,744$ 0.20% 2,511,776$ 19.67% 54 FINANCIAL SUMMARIES 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$ 16,309,921$ 16,217,590$ Water Revenue (Commercial & Fire Det.)1,755,870$ 1,820,913$ 1,822,665$ 1,950,378$ 2,020,223$ Water Revenue (Landscape/Irrigation)3,333,093$ 3,687,643$ 4,035,121$ 4,217,298$ 4,794,156$ Service Charges 3,274,629$ 3,369,437$ 3,755,191$ 3,718,283$ 4,468,716$ Sewer Charge Revenue 1,170,549$ 1,580,369$ 1,548,682$ 1,559,578$ 1,550,530$ Sewer Parcel Assessments 104,030$ 205,435$ 198,433$ 208,190$ 200,797$ Other Operating Revenue 1,035,545$ 848,238$ 643,737$ 721,332$ 717,749$ Total Operating Revenue 24,996,375$ 27,632,716$ 27,409,026$ 28,684,981$ 29,969,760$ Revenue (Non-Operating): Interest 274,152$ 277,137$ 170,000$ 126,139$ 87,000$ Property Tax 1,258,769$ 1,273,855$ 1,244,320$ 1,302,796$ 1,264,672$ Other Non-Operating Revenue 739,062$ 805,654$ 494,437$ 720,947$ 509,150$ Total Non-Operating Revenue 2,271,983$ 2,356,646$ 1,908,757$ 2,149,881$ 1,860,822$ Total Revenue 27,268,358$ 29,989,362$ 29,317,783$ 30,834,863$ 31,830,583$ Expenses (Operating): Variable Costs 11,268,306$ 12,275,853$ 12,953,024$ 12,816,602$ 13,767,658$ Salary Related Expenses 7,416,194$ 6,979,088$ 8,013,891$ 7,578,909$ 8,169,873$ Reduction for Capital Project Labor (513,199)$ -$ (365,000)$ (293,423)$ (265,000)$ Salary Related Expenses Total 6,902,995$ 6,979,088$ 7,648,891$ 7,285,486$ 7,904,873$ Supplies & Services: Communications 270,787$ 214,165$ 303,250$ 386,487$ 305,200$ Contractual Services 781,552$ 437,875$ 489,321$ 478,778$ 542,840$ Data Processing 129,863$ 125,732$ 135,340$ 138,901$ 170,730$ Dues & Memberships 29,832$ 58,432$ 62,192$ 59,042$ 72,335$ Fees & Permits 63,893$ 154,146$ 151,320$ 164,368$ 167,365$ Board Election 35,698$ -$ 51,600$ -$ -$ Insurance 221,949$ 228,805$ 279,200$ 267,193$ 299,240$ Materials 453,331$ 504,352$ 486,025$ 703,877$ 587,775$ District Activities, Emp Recognition 14,811$ 12,972$ 18,600$ 21,048$ 25,150$ Maintenance 280,108$ 532,933$ 378,470$ 420,638$ 479,150$ Non-Capital Equipment 109,830$ 111,375$ 128,050$ 133,746$ 137,950$ Office Expense 28,010$ 46,077$ 40,525$ 42,943$ 46,150$ Professional Services 782,507$ 907,959$ 777,460$ 747,416$ 785,210$ Training 24,269$ 39,030$ 46,100$ 27,630$ 71,160$ Travel & Conferences 21,366$ 20,488$ 44,250$ 26,421$ 52,450$ Uncollectible Accounts 20,263$ 22,995$ 39,000$ 25,506$ 25,000$ Utilities 91,853$ 72,027$ 85,000$ 91,451$ 90,800$ Vehicle Expenses 326,411$ 321,756$ 333,899$ 346,604$ 367,149$ Supplies & Services Sub-Total 3,686,333$ 3,811,119$ 3,849,602$ 4,082,050$ 4,225,654$ Total Operating Expenses 21,857,634$ 23,066,060$ 24,451,517$ 24,184,137$ 25,898,185$ Expenses (Non-Operating): Interest Expense 1,172,503$ 1,626,190$ 2,011,395$ 1,792,738$ 1,815,317$ Other Expense 406,575$ 108,984$ 124,210$ 40,428$ 77,400$ Total Non-Operating Expenses 1,579,078$ 1,735,174$ 2,135,605$ 1,833,166$ 1,892,717$ Total Expenses 23,436,712$ 24,801,234$ 26,587,122$ 26,017,303$ 27,790,902$ Net Income Before Capital Contributions 3,831,646$ 5,188,127$ 2,730,661$ 4,817,559$ 4,039,680$ Extraordinary Item -$ (5,000,000)$ -$ -$ -$ Capital Contributions 706,319$ 17,214,139$ -$ 350,819$ -$ Net Income Before Depreciation 4,537,965$ 17,402,266$ 2,730,661$ 5,168,378$ 4,039,680$ Depreciation 5,279,860$ 6,291,786$ 6,602,339$ 6,863,063$ 6,897,941$ Income (Loss)(741,895)$ 11,110,480$ (3,871,678)$ (1,694,685)$ (2,858,261)$ 56 Total Revenue and Expenses (Water & Sewer), Continued $27,268,358 $29,989,362 $29,317,783 $30,834,863 $31,830,583 $23,436,712 $24,801,234 $26,587,122 $26,017,303 $27,790,902 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 FY 2010/11 Actual FY 2011/12 Actual FY 2012/13 Budget FY 2012/13 Forecast FY 2013/14 Budget Total Revenues & Expenses Total Revenue Total Expenses (Does not include depreciation expense) 57 Total Revenue and Expenses (Water) FY 2010/11 Actual FY 2011/12 Actual FY 2012/13 Budget FY 2012/13 Forecast FY 2013/14 Budget Revenue (Operating): Water Revenue (Residential)14,322,659$ 16,120,680$ 15,405,197$ 16,309,921$ 16,217,590$ Water Revenue (Commercial & Fire Det.)1,755,870$ 1,820,913$ 1,822,665$ 1,950,378$ 2,020,223$ Water Revenue (Landscape/Irrigation)3,333,093$ 3,687,643$ 4,035,121$ 4,217,298$ 4,794,156$ Service Charges 3,274,629$ 3,369,437$ 3,755,191$ 3,718,283$ 4,468,716$ Other Operating Revenue 981,471$ 753,830$ 585,929$ 663,720$ 681,074$ Total Operating Revenue 23,667,722$ 25,752,503$ 25,604,103$ 26,859,601$ 28,181,759$ Revenue (Non-Operating): Interest 252,522$ 253,478$ 150,000$ 110,091$ 75,000$ Property Taxes 1,258,769$ 1,273,855$ 1,244,320$ 1,302,796$ 1,264,672$ Other Non-Operating Revenue 732,638$ 538,468$ 490,262$ 720,947$ 501,200$ Total Non-Operating Revenue 2,243,929$ 2,065,801$ 1,884,582$ 2,133,833$ 1,840,872$ Total Revenue 25,911,651$ 27,818,304$ 27,488,685$ 28,993,434$ 30,022,631$ Expenses (Operating): Variable Water Costs (G.W., Import & Power)11,267,615$ 12,275,853$ 12,953,024$ 12,816,602$ 13,767,658$ Salary Related Expenses 6,586,253$ 6,125,692$ 7,091,403$ 6,711,924$ 7,237,204$ Reduction for Capital Project Labor (471,314)$ -$ (350,000)$ (287,344)$ (250,000)$ Salary Related Expenses Total 6,114,939$ 6,125,692$ 6,741,403$ 6,424,580$ 6,987,204$ Supplies & Services Communications 246,115$ 199,032$ 280,232$ 193,243$ 283,371$ Contractual Services 718,383$ 407,877$ 455,041$ 444,472$ 504,089$ Data Processing 118,175$ 116,676$ 125,866$ 128,989$ 158,779$ Dues & Memberships 26,899$ 53,650$ 57,609$ 54,781$ 67,021$ Fees & Permits 57,982$ 146,445$ 139,165$ 147,256$ 152,224$ Board Election 32,485$ -$ 47,988$ -$ -$ Insurance 201,974$ 212,136$ 259,656$ 248,490$ 278,293$ Materials 432,441$ 483,301$ 451,506$ 684,058$ 568,676$ District Activities, Emp Recognition 13,478$ 12,066$ 17,298$ 19,576$ 23,390$ Maintenance 237,689$ 398,747$ 307,065$ 306,739$ 357,243$ Non-Capital Equipment 87,296$ 94,576$ 109,782$ 117,827$ 121,534$ Office Expense 25,485$ 42,245$ 37,702$ 39,950$ 42,920$ Professional Services 557,721$ 873,650$ 740,578$ 716,585$ 747,785$ Training 20,976$ 34,710$ 41,353$ 21,567$ 64,403$ Travel & Conferences 19,417$ 19,194$ 40,833$ 24,874$ 48,389$ Uncollectible Accounts 18,919$ 21,833$ 36,270$ 23,250$ 23,250$ Utilities 83,603$ 66,904$ 79,050$ 84,249$ 83,700$ Vehicle Expenses 261,381$ 278,209$ 282,400$ 294,395$ 321,250$ Supplies & Services Sub-Total 3,160,419$ 3,461,250$ 3,509,393$ 3,550,301$ 3,846,315$ Total Operating Expenses 20,542,973$ 21,862,795$ 23,203,820$ 22,791,482$ 24,601,177$ Expenses (Non-Operating) Interest on Long Term Debt 1,171,439$ 1,625,865$ 2,009,777$ 1,792,738$ 1,815,317$ Other Expense 291,195$ 90,485$ 118,210$ 40,206$ 71,400$ Total Non-Operating Expenses 1,462,634$ 1,716,350$ 2,127,987$ 1,832,944$ 1,886,717$ Total Expenses 22,005,607$ 23,579,145$ 25,331,807$ 24,624,427$ 26,487,894$ Net Income (Loss) Before Capital Contributions 3,906,044$ 4,239,159$ 2,156,878$ 4,369,007$ 3,534,737$ Transfers (To)/From -$ (5,085,111)$ -$ -$ -$ Capital Contributions 364,564$ 98,241$ -$ 193,770$ -$ Net Income (Loss) Before Depreciation 4,270,608$ (747,711)$ 2,156,878$ 4,562,777$ 3,534,737$ Depreciation 4,669,579$ 5,359,086$ 5,332,175$ 5,562,388$ 5,598,640$ Income (Loss)(398,971)$ (6,106,797)$ (3,175,297)$ (999,611)$ (2,063,903)$ 58 Total Revenue and Expenses (Water), Continued 59 Total Revenue and Expenses (Sewer) FY 2010/11 Actual FY 2011/12 Actual FY 2012/13 Budget FY 2012/13 Forecast FY 2013/14 Budget Revenue (Operating): Sewer Charge Revenue 1,170,549$ 1,580,369$ 1,548,682$ 1,559,578$ 1,550,530$ Sewer Parcel Assessments 104,030$ 205,435$ 198,433$ 208,190$ 200,797$ Other Operating Revenue 54,074$ 94,408$ 57,808$ 57,612$ 36,675$ Total Operating Revenue 1,328,653$ 1,880,213$ 1,804,923$ 1,825,380$ 1,788,002$ Revenue (Non-Operating): Interest 21,630$ 23,659$ 20,000$ 16,048$ 12,000$ Other Non-Operating Revenue 6,424$ 267,186$ 4,175$ -$ 7,950$ Total Non-Operating Revenue 28,054$ 290,845$ 24,175$ 16,048$ 19,950$ Total Revenue 1,356,707$ 2,171,058$ 1,829,098$ 1,841,428$ 1,807,952$ Expenses (Operating): Variable Water Costs (G.W., Import & Power)691$ -$ -$ -$ -$ Salary Related Expenses 829,941$ 853,396$ 922,488$ 866,985$ 932,669$ Reduction for Capital Project Labor (41,885)$ -$ (15,000)$ (6,079)$ (15,000)$ Salary Related Expenses Total 788,056$ 853,396$ 907,488$ 860,906$ 917,669$ Supplies & Services Communications 24,672$ 15,133$ 23,018$ 193,243$ 21,829$ Contractual Services 63,169$ 29,998$ 34,280$ 34,306$ 38,751$ Data Processing 11,688$ 9,056$ 9,474$ 9,912$ 11,951$ Dues & Memberships 2,933$ 4,782$ 4,583$ 4,262$ 5,314$ Fees & Permits 5,911$ 7,701$ 12,155$ 17,112$ 15,141$ Board Election 3,213$ -$ 3,612$ -$ -$ Insurance 19,975$ 16,668$ 19,544$ 18,704$ 20,947$ Materials 20,890$ 21,051$ 34,519$ 19,818$ 19,099$ District Activities, Emp Recognition 1,333$ 907$ 1,302$ 1,472$ 1,761$ Maintenance 42,419$ 134,185$ 71,405$ 113,899$ 121,908$ Non-Capital Equipment 22,534$ 16,800$ 18,269$ 15,919$ 16,417$ Office Expense 2,525$ 3,832$ 2,823$ 2,993$ 3,231$ Professional Services 224,786$ 34,310$ 36,882$ 30,830$ 37,425$ Training 3,293$ 4,320$ 4,747$ 6,063$ 6,757$ Travel & Conferences 1,949$ 1,294$ 3,418$ 1,548$ 4,062$ Uncollectible Accounts 1,344$ 1,162$ 2,730$ 2,256$ 1,750$ Utilities 8,250$ 5,123$ 5,950$ 7,202$ 7,100$ Vehicle Expenses 65,030$ 43,547$ 51,499$ 52,209$ 45,899$ Supplies & Services Sub-Total 525,914$ 349,869$ 340,209$ 531,749$ 379,339$ Total Operating Expenses 1,314,661$ 1,203,265$ 1,247,697$ 1,392,655$ 1,297,008$ Expenses (Non-Operating): Interest Expense 1,064$ 325$ 1,618$ -$ -$ Other Expense 115,380$ 18,499$ 6,000$ 222$ 6,000$ Total Non-Operating Expenses 116,444$ 18,824$ 7,618$ 222$ 6,000$ Total Expenses 1,431,105$ 1,222,089$ 1,255,315$ 1,392,876$ 1,303,008$ Net Income (Loss) Before Capital Contributions (74,398)$ 948,968$ 573,783$ 448,552$ 504,944$ Transfer (To)/From -$ 85,111$ -$ -$ -$ Capital Contributions 341,755$ 17,115,898$ -$ 157,049$ -$ Net Income Before Depreciation 267,357$ 18,149,977$ 573,783$ 605,601$ 504,944$ Depreciation 610,281$ 932,700$ 1,270,164$ 1,300,675$ 1,299,301$ Income (Loss)(342,924)$ 17,217,277$ (696,381)$ (695,074)$ (794,357)$ 60 Total Revenue and Expenses (Sewer), Continued $1,356,707 $2,171,058 $1,829,098 $1,841,428 $1,807,952 $1,431,105 $1,222,089 $1,255,315 $1,392,876 $1,303,008 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FY 10/11 Actual FY 11/12 Actual FY 12/13 Budget FY 12/13 Forecast FY 13/14 Budget Sewer Revenues & Expenses Total Sewer Revenues Total Sewer Expenses (Does not include depreciation expense) 61 Total Revenues by Fund Total Revenues FY10/11 Actual FY 11/12 Actual FY 12/13 Budget FY 12/13 Forecast FY 13/14 Budget Water Revenue 25,911,651$ 27,818,304$ 27,488,685$ 28,993,434$ 30,022,631$ Sewer Revenue 1,356,707$ 2,171,058$ 1,829,098$ 1,841,428$ 1,807,952$ Total Operating Revenue:27,268,358$ 29,989,362$ 29,317,783$ 30,834,863$ 31,830,583$ $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 FY10/11 Actual FY 11/12 Actual FY 12/13 Budget FY 12/13 Forecast FY 13/14 Budget Total Revenues Water Revenue Sewer Revenue 62 Total Expenses by Fund FY10/11 Actual FY 11/12 Actual FY 12/13 Budget FY 12/13 Forecast FY 13/14 Budget Water $22,005,607 $23,579,145 $25,331,807 $24,624,427 $26,487,894 Sewer $1,431,105 $1,222,089 $1,255,315 $1,392,876 $1,303,008 Total Operating Expenses:$23,436,712 $24,801,234 $26,587,122 $26,017,303 $27,790,902 **Depreciation Not Included 63 Total Expenses by Category Five Year Cost Comparison Depreciation & Amortization 16% ($6.9M) Variable Costs 42% ($13.8M) Salary Related Expenses 24% ($7.9M) Supplies & Services 12% ($4.2M) Interest Expense 6% ($1.8M) Other Expense 0% ($.1M) FY 2013/14 Budget Total: $34,688,843 64 Variable Water Cost Expenses Note: The Variable Water Costs category is the largest component of the FY 2013/14 Budgeted Operating Costs and includes imported and groundwater purchases, as well as power costs associated with pumping water throughout the District. These costs are listed in the Total Water Revenues and Expenses and Water Revenues and Expenses schedules on pages 57 and 59, respectively. 65 Reserves & Funding Sources Restriction Category Balance Ending 6/30/2012 Balance Ending 5/31/2013 Forecasted Balance Ending 6/30/2013 Additions (Deductions) FY 2013/14 Budgeted Balances Ending 6/30/2014 Water (Operating): Operating Fund Operating Reserve 3,632,086 3,901,156 3,300,000 882,200 4,182,200 Reserve for Debt Service Debt Service Payment 1,021,981 1,010,637 1,384,000 1,339,509 2,723,509 Employee Liabilities OPEB and Comp Abs.- - - 93,000 93,000 Water (Capital) Water Emergency Emergency Reserve 1,000,992 1,006,647 1,000,000 - 1,000,000 Water Capital Projects Capital Reserve*11,248,023 7,748,028 7,500,000 (497,110) 7,002,890 COP Bond 2008 Capital Reserve - - - - - COP Bond 2008 - Reserve Restricted from Use**2,175,035 2,162,948 2,147,096 - 2,147,096 Water Maintenance Capital Reserve 200,000 200,715 200,000 - 200,000 Sewer (Operating): Operating Fund Operating Reserve 260,007 283,581 300,000 141,373 441,373 Employee Liabilities OPEB and Comp Abs.- - - 7,000 7,000 Sewer (Capital) Sewer Emergency Emergency Reserve 999,991 1,005,640 1,000,000 - 1,000,000 Sewer Capital Projects Capital Reserve 1,206,979 1,145,875 1,174,204 282,031 1,456,235 Total of Funds 21,745,094$ 18,465,227$ 18,005,300$ 2,248,003$ 20,253,303$ *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 66 Projected Reserves & Funding Levels 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 project ions 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:  Costs passed-through for all variable water cost rate increases  Annual increases on the water commodity rate of 2.5% or 3%  Annexation to OCWD in FY 14/15  $7 million borrowing through a Line of Credit in FY 12/13 at an interest rate of One Month LIBOR + 0.90%, with renewals every 3 years  Principal repayment deferred to begin in FY 18/19  A 0.04% annual growth in customer accounts  No change to the sewer rate, but an alignment to address a disparity in our rates in FY 2015/16  Average interest earnings at 0.5% - 1.0%  1% growth in property taxes  2% annual increase in other non-operating revenue other than annexation amortization  3% - 5% annual increases in variable water costs  5.0% annual increases in salary related expenses  3-8% annual increases in supplies and services expenses with the following exceptions:  Board Election expense only budgeted every other year  Utilities expense budgeted to increase 5% annually  Interest expense equal to those scheduled by the existing bonds and assumed interest rate of 1.5-2.0% for Line of Credit  No change to future budgets for other non-operating expenses  Depreciation increases based on the projected completion of CIP jobs The District is still in the middle of an aggressive CIP spending plan that was created with the issuance of the 2008 Certificates of Participation. The following projections include the completion of that spending plan. 68 Five Year Financial Projections Water & Sewer FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Revenue (Operating): Water Revenue (Residential)16,217,590$ 16,671,541$ 17,338,876$ 18,086,654$ 18,683,665$ Water Revenue (Commercial & Fire Det.)2,020,223$ 2,076,772$ 2,159,902$ 2,253,052$ 2,327,422$ Water Revenue (Landscape/Irrigation)4,794,156$ 4,928,351$ 5,125,625$ 5,346,679$ 5,523,164$ Service Charges 4,468,716$ 5,009,840$ 5,844,707$ 6,726,646$ 7,637,940$ Sewer Charge Revenue 1,550,530$ 1,565,506$ 1,697,143$ 1,701,940$ 1,706,757$ Sewer Parcel Assessments 200,797$ 200,797$ 133,702$ 133,702$ 133,702$ Other Operating Revenue 717,749$ 731,370$ 745,264$ 759,436$ 773,891$ Total Operating Revenue 29,969,760$ 31,184,177$ 33,045,219$ 35,008,109$ 36,786,541$ Revenue (Non-Operating): Interest 87,000$ 122,644$ 142,349$ 184,171$ 238,796$ Property Tax 1,264,672$ 1,277,319$ 1,290,092$ 1,302,993$ 1,316,023$ Other Non-Operating Revenue 509,150$ 510,354$ 511,582$ 512,835$ 514,112$ Total Non-Operating Revenue 1,860,822$ 1,910,317$ 1,944,023$ 1,999,999$ 2,068,931$ Total Revenue 31,830,583$ 33,094,494$ 34,989,242$ 37,008,108$ 38,855,472$ Expenses (Operating): Variable Water Costs 13,767,658$ 13,290,809$ 14,052,319$ 14,163,929$ 14,877,435$ Salary Related Expenses 7,904,873$ 8,300,116$ 8,715,122$ 9,150,878$ 9,608,422$ Supplies & Services: Communications 305,200$ 329,616$ 355,985$ 373,785$ 384,998$ Contractual Services 542,840$ 586,267$ 633,169$ 664,827$ 684,772$ Data Processing 170,730$ 184,388$ 199,139$ 209,096$ 215,369$ Dues & Memberships 72,335$ 78,122$ 84,372$ 88,590$ 91,248$ Fees & Permits 167,365$ 180,754$ 195,215$ 204,975$ 211,125$ Board Election -$ 50,000$ -$ 55,000$ -$ Insurance 299,240$ 314,202$ 329,912$ 346,408$ 363,728$ Materials 587,775$ 634,797$ 685,581$ 719,860$ 741,456$ District Activities, Emp Recognition 25,150$ 27,162$ 29,335$ 30,802$ 31,726$ Maintenance 479,150$ 517,482$ 558,881$ 586,825$ 604,429$ Non-Capital Equipment 137,950$ 148,986$ 160,905$ 168,950$ 174,019$ Office Expense 46,150$ 49,842$ 53,829$ 56,521$ 58,216$ Professional Services 785,210$ 848,027$ 915,869$ 961,662$ 990,512$ Training 71,160$ 76,853$ 83,001$ 87,151$ 89,766$ Travel & Conferences 52,450$ 56,646$ 61,178$ 64,237$ 66,164$ Uncollectible Accounts 25,000$ 27,000$ 29,160$ 30,618$ 31,537$ Utilities 90,800$ 98,064$ 105,909$ 111,205$ 114,541$ Vehicle Equipment 367,149$ 396,521$ 428,243$ 449,655$ 463,144$ Supplies & Services Sub-Total 4,225,654$ 4,604,729$ 4,909,681$ 5,210,165$ 5,316,749$ Total Operating Expenses 25,898,185$ 26,195,654$ 27,677,122$ 28,524,973$ 29,802,606$ Expenses (Non-Operating): Interest Expense 1,815,317$ 1,816,865$ 1,816,559$ 1,776,884$ 1,734,309$ Other Expense 77,400$ 77,400$ 77,400$ 77,400$ 77,400$ Total Non-Operating Expenses 1,892,717$ 1,894,265$ 1,893,959$ 1,854,284$ 1,811,709$ Total Expenses 27,790,902$ 28,089,919$ 29,571,081$ 30,379,257$ 31,614,315$ Net Income (Loss) Before Depreciation 4,039,680$ 5,004,575$ 5,418,161$ 6,628,851$ 7,241,158$ Depreciation 6,897,941$ 7,605,833$ 7,763,333$ 8,015,833$ 8,156,833$ Income (Loss)(2,858,261)$ (2,601,259)$ (2,345,172)$ (1,386,982)$ (915,675)$ 69 Five Year Financial Projections Water FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Revenue (Operating): Water Revenue (Residential)16,217,590$ 16,671,541$ 17,338,876$ 18,086,654$ 18,683,665$ Water Revenue (Commercial & Fire Det.)2,020,223$ 2,076,772$ 2,159,902$ 2,253,052$ 2,327,422$ Water Revenue (Landscape/Irrigation)4,794,156$ 4,928,351$ 5,125,625$ 5,346,679$ 5,523,164$ Service Charges 4,468,716$ 5,009,840$ 5,844,707$ 6,726,646$ 7,637,940$ Other Operating Revenue 681,074$ 694,695$ 708,589$ 722,761$ 737,216$ Total Operating Revenue 28,181,759$ 29,381,199$ 31,177,699$ 33,135,793$ 34,909,407$ Revenue (Non-Operating): Interest 75,000$ 108,967$ 120,708$ 150,054$ 202,027$ Property Tax 1,264,672$ 1,277,319$ 1,290,092$ 1,302,993$ 1,316,023$ Other Non-Operating Revenue 501,200$ 502,404$ 503,632$ 504,885$ 506,162$ Total Non-Operating Revenue 1,840,872$ 1,888,690$ 1,914,432$ 1,957,932$ 2,024,212$ Total Revenue 30,022,631$ 31,269,889$ 33,092,131$ 35,093,725$ 36,933,619$ Expenses (Operating): Variable Water Costs 13,767,658$ 13,290,809$ 14,052,319$ 14,163,929$ 14,877,435$ Salary Related Expenses 6,987,204$ 7,336,564$ 7,703,392$ 8,088,562$ 8,492,990$ Supplies & Services: Communications 283,371$ 306,041$ 330,524$ 347,050$ 357,462$ Contractual Services 504,089$ 544,416$ 587,970$ 617,368$ 635,889$ Data Processing 158,779$ 171,481$ 185,200$ 194,460$ 200,293$ Dues & Memberships 67,021$ 72,382$ 78,173$ 82,081$ 84,544$ Fees & Permits 152,224$ 164,402$ 177,554$ 186,432$ 192,025$ Board Election -$ 46,500$ -$ 51,150$ -$ Insurance 278,293$ 292,208$ 306,818$ 322,159$ 338,267$ Materials 568,676$ 614,170$ 663,303$ 696,469$ 717,363$ District Activities, Emp Recognition 23,390$ 25,261$ 27,282$ 28,646$ 29,505$ Maintenance 357,243$ 385,822$ 416,688$ 437,522$ 450,648$ Non-Capital Equipment 121,534$ 131,256$ 141,757$ 148,845$ 153,310$ Office Expense 42,920$ 46,353$ 50,061$ 52,564$ 54,141$ Professional Services 747,785$ 807,608$ 872,217$ 915,828$ 943,302$ Training 64,403$ 69,556$ 75,120$ 78,876$ 81,242$ Travel & Conferences 48,389$ 52,260$ 56,440$ 59,262$ 61,040$ Uncollectible Accounts 23,250$ 25,110$ 27,119$ 28,475$ 29,329$ Utilities 83,700$ 90,396$ 97,628$ 102,509$ 105,584$ Vehicle Equipment 321,250$ 346,950$ 374,706$ 393,441$ 405,245$ Supplies & Services Sub-Total 3,846,315$ 4,192,171$ 4,468,558$ 4,743,136$ 4,839,189$ Total Operating Expenses 24,601,177$ 24,819,544$ 26,224,270$ 26,995,627$ 28,209,614$ Expenses (Non-Operating): Interest Expense 1,815,317$ 1,816,865$ 1,816,559$ 1,776,884$ 1,734,309$ Other Expense 71,400$ 71,400$ 71,400$ 71,400$ 71,400$ Total Non-Operating Expenses 1,886,717$ 1,888,265$ 1,887,959$ 1,848,284$ 1,805,709$ Total Expenses 26,487,894$ 26,707,809$ 28,112,229$ 28,843,911$ 30,015,323$ Net Income (Loss) Before Depreciation 3,534,737$ 4,562,080$ 4,979,903$ 6,249,814$ 6,918,297$ Depreciation 5,598,640$ 6,261,132$ 6,418,632$ 6,671,132$ 6,812,132$ Income (Loss)(2,063,903)$ (1,699,052)$ (1,438,730)$ (421,319)$ 106,164$ Debt Service Coverage 1.94 2.30 2.45 2.90 3.14 70 Five Year Financial Projections Sewer FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Revenue (Operating): Sewer Charge Revenue 1,550,530$ 1,565,506$ 1,697,143$ 1,701,940$ 1,706,757$ Sewer Parcel Assessments 200,797$ 200,797$ 133,702$ 133,702$ 133,702$ Other Operating Revenue 36,675$ 36,675$ 36,675$ 36,675$ 36,675$ Total Operating Revenue 1,788,002$ 1,802,978$ 1,867,520$ 1,872,317$ 1,877,134$ Revenue (Non-Operating): Interest 12,000$ 13,677$ 21,641$ 34,117$ 36,769$ Other Non-Operating Revenue 7,950$ 7,950$ 7,950$ 7,950$ 7,950$ Total Non-Operating Revenue 19,950$ 21,627$ 29,591$ 42,067$ 44,719$ Total Revenue 1,807,952$ 1,824,605$ 1,897,111$ 1,914,384$ 1,921,853$ Expenses (Operating): Salary Related Expenses 917,669$ 963,552$ 1,011,730$ 1,062,316$ 1,115,432$ Supplies & Services: Communications 21,829$ 23,575$ 25,461$ 26,734$ 27,536$ Contractual Services 38,751$ 41,851$ 45,199$ 47,459$ 48,883$ Data Processing 11,951$ 12,907$ 13,940$ 14,637$ 15,076$ Dues & Memberships 5,314$ 5,740$ 6,199$ 6,509$ 6,704$ Fees & Permits 15,141$ 16,352$ 17,661$ 18,544$ 19,100$ Board Election -$ 3,500$ -$ 3,850$ -$ Insurance 20,947$ 21,994$ 23,094$ 24,249$ 25,461$ Materials 19,099$ 20,627$ 22,277$ 23,391$ 24,093$ District Activities, Emp Recognition 1,761$ 1,901$ 2,053$ 2,156$ 2,221$ Maintenance 121,908$ 131,660$ 142,193$ 149,303$ 153,782$ Non-Capital Equipment 16,417$ 17,730$ 19,148$ 20,106$ 20,709$ Office Expense 3,231$ 3,489$ 3,768$ 3,956$ 4,075$ Professional Services 37,425$ 40,419$ 43,652$ 45,835$ 47,210$ Training 6,757$ 7,297$ 7,881$ 8,275$ 8,523$ Travel & Conferences 4,062$ 4,386$ 4,737$ 4,974$ 5,123$ Uncollectible Accounts 1,750$ 1,890$ 2,041$ 2,143$ 2,208$ Utilities 7,100$ 7,668$ 8,281$ 8,696$ 8,956$ Vehicle Equipment 45,899$ 49,571$ 53,537$ 56,213$ 57,900$ Supplies & Services Sub-Total 379,339$ 412,558$ 441,123$ 467,029$ 477,559$ Total Operating Expenses 1,297,008$ 1,376,110$ 1,452,853$ 1,529,346$ 1,592,992$ Expenses (Non-Operating): Other Expense 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Total Non-Operating Expenses 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Total Expenses 1,303,008$ 1,382,110$ 1,458,853$ 1,535,346$ 1,598,992$ Net Income (Loss) Before Depreciation 504,944$ 442,495$ 438,258$ 379,039$ 322,861$ Depreciation 1,299,301$ 1,344,701$ 1,344,701$ 1,344,701$ 1,344,701$ Income (Loss)(794,357)$ (902,206)$ (906,443)$ (965,662)$ (1,021,840)$ 71 Five Year Financial Projections Reserve Balances- Water FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Operating Reserves Ending Balance 4,182,200$ 4,219,322$ 4,234,994$ 4,589,257$ 3,433,378$ Minimum Balance 1,968,094$ 1,985,564$ 2,097,942$ 2,159,650$ 2,256,769$ Maximum Balance 4,182,200$ 4,219,322$ 4,458,126$ 4,589,257$ 4,795,634$ Capital Replacement Reserves Ending Balance 7,002,890$ 4,745,820$ 1,820,000$ 1,834,547$ 1,820,000$ Minimum Balance*1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$ 1,820,000$ Maintenance Reserves Ending Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Minimum Balance 200,000$ 200,000$ 200,000$ 200,000$ 200,000$ Emergency Reserves Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Minimum Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Debt Service Reserves Ending Balance 2,723,509$ 2,723,509$ 2,721,559$ 2,716,884$ 2,714,309$ Minimum Balance 2,723,509$ 2,723,509$ 2,721,559$ 2,716,884$ 2,714,309$ COP Reserves Ending Balance 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ Minimum Balance 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ 2,147,096$ Employee Benefit Liability Reserves Ending Balance 93,000$ 186,000$ 279,000$ 372,000$ 465,000$ Minimum Balance*93,000$ 93,000$ 93,000$ 93,000$ 93,000$ Total Water Reserves 464,099$ 397,865$ 710,000$ Ending Balance 17,348,695$ 15,221,747$ 12,402,649$ 12,859,784$ 11,779,783$ Minimum Balance 9,951,699$ 9,969,169$ 10,079,597$ 10,136,630$ 10,231,174$ *Minimum Balance is actually minimum annual funding 72 Five Year Financial Projections Reserve Balances- Sewer FY 2013/14 Budget FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017/18 Budget Operation Reserves Ending Balance 441,373$ 462,538$ 475,584$ 488,588$ 499,408$ Minimum Balance 207,705$ 217,665$ 223,804$ 229,924$ 235,015$ Maximum Balance 441,373$ 462,538$ 475,584$ 488,588$ 499,408$ Capital Replacement Reserves Ending Balance 1,456,235$ 1,396,500$ 1,353,866$ 1,366,769$ 1,441,941$ Minimum Balance*345,000$ 345,000$ 345,000$ 345,000$ 345,000$ Emergency Reserves Ending Balance 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ Minimum Balance 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ Employee Liability Reserves Ending Balance 7,000$ 14,000$ 21,000$ 28,000$ 35,000$ Minimum Balance -$ -$ -$ -$ -$ Total Sewer Reserves 62,111$ 45,258$ (65,696)$ (185,865)$ Ending Balance 2,904,608$ 2,873,038$ 2,850,450$ 2,883,357$ 2,976,349$ Minimum Balance 802,705$ 812,665$ 818,804$ 824,924$ 830,015$ *Minimum Balance is actually minimum annual funding 73 Fund Balance History (FYE 2005-2013) Fiscal Year Water Sewer Ending Funds Fund Total Fund Balance @ 6/30/2009 124,012,838$ 25,406,475$ 149,419,313$ 06/30/10 Net Income Before Capital Contributions (1,242,250)(317,140)(1,559,390) Capital Contributions 5,973,683 733,715 6,707,398 Fund Balance @ 6/30/2010 128,744,271$ 25,823,050$ 154,567,321$ 06/30/11 Net Income Before Capital Contributions (763,535)(684,679)(1,448,214) Capital Contributions 364,564 341,755 706,319 Prior Period Adjustment - 410,247 410,247 Fund Balance @ 6/30/2011 128,345,300$ 25,890,373$ 154,235,673$ 06/30/12 Net Income Before Capital Contributions (1,119,927)(287,672)(1,407,599) Capital Contributions 98,241 17,115,898 17,214,139 Transfers In (Out)(85,111)85,111 0 Extraordinary Item (5,000,000)- (5,000,000) Fund Balance @ 6/30/2012 122,238,503$ 42,803,710$ 165,042,213$ 06/30/13 Revenue (Operating): Water Sales 26,195,881 - 26,195,881 Sewer Revenues - 1,767,769 1,767,769 Other Operating Revenue 663,720 57,612 721,332 Interest 110,091 16,048 126,139 Property Taxes 1,302,796 - 1,302,796 Other Non-Operating Revenue 720,947 - 720,947 Total Estimated Revenues FY2013 28,993,434 1,841,428 30,834,863 Expenses (Operating): Variable Water Costs (G.W., Import & Power)12,816,602 - 12,816,602 Salary Related Expenses 6,424,580 860,906 7,285,486 Supplies & Services 3,550,301 531,749 4,082,050 Depreciation 5,562,388 1,300,675 6,863,063 Interest on Long Term Debt 1,792,738 - 1,792,738 Other Expense 40,206 222 40,428 Total Estimated Expenses FY2013 30,186,815 2,693,551 32,880,366 Net Income Before Capital Contributions (1,193,381)(852,123)(2,045,504) Capital Contributions 193,770 157,049 350,819 Net Income(Loss) FY2013 (999,611)(695,074)(1,694,685) Estimated Fund Balance @ 6/30/2013 121,238,892$ 42,108,636$ 163,347,528$ 06/30/14 Revenue (Operating): Water Sales 27,500,685 - 27,500,685 Sewer Revenues - 1,751,327 1,751,327 Other Operating Revenue 681,074 36,675 717,749 Interest 75,000 12,000 87,000 Property Taxes 1,264,672 - 1,264,672 Other Non-Operating Revenue 501,200 7,950 509,150 Total Estimated Revenues FY2014 30,022,631 1,807,952 31,830,583 Expenses (Operating): Variable Water Costs (G.W., Import & Power)13,767,658 - 13,767,658 Salary Related Expenses 6,987,204 917,669 7,904,873 Supplies & Services 3,846,315 379,339 4,225,654 Depreciation 5,598,640 1,299,301 6,897,941 Interest on Long Term Debt 1,815,317 - 1,815,317 Other Expense 71,400 6,000 77,400 Total Estimated Expenses FY2014 32,086,534 2,602,309 34,688,844 Net Income(Loss) FY2014 (2,063,903)(794,357)(2,858,261) Estimated Fund Balance @ 6/30/2014 119,174,988$ 41,314,279$ 160,489,267$ 74 Debt Administration The District’s debt rating from Fitch is “AA”. The District has no formal debt policy and no legal debt limit; however, the District’s future borrowing capacity is limited by the debt coverage ratio required by existing bond covenants. The covenants require that the coverage exceed 1.1; the District’s budgeted ratio is 1.96 for Fiscal Year 2014. This District’s Fiscal Year 2013 budgeted debt service obligation ($2,712,659) is related to its two existing debt issuances. Use of proceeds and the corresponding principal balance of each are as follows: Debt service requirements for the District’s Certificates of Participation are as follows: Year of Issuance Use of Proceeds Principal Balance as of June 2013 2008 COP COP funds are being issued to finance certain capital improvements, to fund a reserve fund, and to pay certain costs of delivery. $ 32,070,000 2012A Refunding Bond Refunding BOnds funds are being issued to finance certain capital improvements, to fund a reserve fund, and to pay certain costs of delivery. 8,330,000 40,400,000$ Year Principal Interest Total 2014 965,000$ 1,747,659$ 2,712,659$ 2015 1,010,000$ 1,713,509$ 2,723,509$ 2016 1,045,000$ 1,676,559$ 2,721,559$ 2017 1,080,000$ 1,636,884$ 2,716,884$ 2018 1,120,000$ 1,594,309$ 2,714,309$ 2019 1,170,000$ 1,548,509$ 2,718,509$ 2020-2024 6,575,000$ 6,979,956$ 13,554,956$ 2025-2028 6,345,000$ 4,472,856$ 10,817,856$ 2029-2033 9,630,000$ 3,851,684$ 13,481,684$ 2034-2039 11,460,000$ 1,719,219$ 13,179,219$ Total 40,400,000$ 26,941,143$ 67,341,143$ 75 Employees Per Capita * Note: Employees per Capita is for fiscal year 2012/13 and is measured in number of employees per thousand customers 0.00 0.50 1.00 1.50 2.00 2.50 Yorba Linda WD South Coast WD Serrano WD Walnut Valley WD Mesa Water 1.09 2.21 2.00 0.54 0.53 Employees per Capita 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. 77 CAPITAL PROJECTS 78 Yorba Linda Boulevard Pipeline Project 79 Capital Improvement Plan Project #Project Description Total Project Budget (12/13) Increase/ (Decrease) Total Project Budget (13/14) Expenditures Through 6/30/2012 FY 12/13 Expenditure Forecast 2008-17B YL Blvd BPS (Booster Pump Station)2,650,000$ 465,000$ 3,115,000$ 112,924$ 927,076$ 2009-22 #21 S & W Well Project (Well No. 21)2,300,000$ (550,000)$ 1,750,000$ 33,337$ 36,663$ 2009-22 #22 S & W Well Project (Well No. 22)2,500,000$ -$ 2,500,000$ 2,029$ 2,971$ 2010-02 Lakeview Grade Separation 80,000$ 520,000$ 600,000$ 82,176$ 217,824$ -Lakeview Landscaping 50,000$ -$ 50,000$ -$ -$ 2010-11B Fairmont BPS Upgrade 5,500,000$ 800,000$ 6,300,000$ 11,103$ 148,897$ 2011-20 2012 Waterline Project 1,170,000$ 475,000$ 1,645,000$ 41,336$ 1,103,664$ 2012-13 Yorba Linda High School Park -$ 370,000$ 370,000$ -$ 55,000$ Rehabilitation & Restoration -Meter Replacement Program 350,000$ 2,150,000$ 2,500,000$ -$ -$ -Future Pipeline Project 2,560,000$ 130,000$ 2,690,000$ -$ -$ New Elk Mountain Booster Surge Tank -$ 100,000$ 100,000$ -$ -$ New Timber Ridge BPS Rehabilitiation -$ 250,000$ 250,000$ -$ -$ New Richfield Campus Spoils -$ 150,000$ 150,000$ -$ -$ New Lakeview Booster Piping -$ 100,000$ 100,000$ -$ -$ New Future PRS Rehabilitation -$ 1,430,000$ 1,430,000$ -$ -$ -Annual Routine Capital R&R 5,830,000$ (4,310,000)$ 1,520,000$ -$ -$ R & R Subtotal 8,740,000$ -$ 8,740,000$ -$ -$ TOTAL 22,990,000$ 2,080,000$ 25,070,000$ 282,905$ 2,492,095$ Project #Projects Completed in FY 12/13 Total Project Budget (12/13) Over/(Under) Budget Actual Project Total Expenditures Through 6/30/2012 FY 12/13 Expenditure Forecast 2007-11 Well No. 20 2,300,000$ (300,000)$ 2,000,000$ 1,879,459$ 120,541$ 2008-14 Highland BPS Upgrade*6,100,000$ (127,000)$ 5,973,000$ 5,676,955$ 296,045$ 2008-17 YL Blvd Pipeline*2,250,000$ -$ 2,250,000$ 375,426$ 1,874,574$ 2009-15 Computerized Maint & Mgmt Syst.410,000$ (62,500)$ 347,500$ 325,109$ 22,391$ 2010-11 Fairmont Reservoir Site Improvement*500,000$ (130,000)$ 370,000$ 287,676$ 82,324$ 2011-08 Press. Reg. Stations Upgrade*1,000,000$ (120,000)$ 880,000$ 110,036$ 769,964$ 2011-16S Green Crest Dr. Sewer Lift Stn Upgr*140,000$ 30,000$ 170,000$ 97,583$ 72,417$ 2011-23S Sewer Facilities GIS Conversion*22,500$ 8,000$ 30,500$ 24,132$ 6,368$ 2012-15 Richfield Chlorine System PLC*-$ 24,000$ 24,000$ -$ 24,000$ -Disinf. Bstr. Sta. at Hidden Hills Res.**200,000$ (200,000)$ -$ -$ -$ -GIS - Phase II**97,000$ (97,000)$ -$ -$ -$ -GIS - Phase II (Sewer)**36,000$ (36,000)$ -$ -$ -$ TOTAL 13,055,500$ (1,010,500)$ 12,045,000$ 8,776,376$ 3,268,624$ GRAND TOTAL 36,045,500$ 9,059,281$ 5,760,719$ *Project Due to be Completed and Capitalized in FY 12/13 **Project Moved to Vehicle Equipment & Capital Outlay 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$ 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. 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 lo ss 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, ident ified 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. 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 crea ted 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: $50,000 Timber Ridge Booster Station is undersized and needs additional emergency pumping capacity. Staff will evaluate the least cost method to install a new gas engine enclosed with a new building, or install a new electric generator a nd possibly upsizing one or more of the existing pumps. 84 85 Vehicle Equipment and Capital Outlay (FY 2013/14) Department / Item Amount Board of Directors None Administration None Engineering Construction F150 4X4 Truck Replacement 26,000$ F150 Super Cab Truck Replacement 26,000$ Total Vehicle Equipment & Capital Outlay- Engineering 52,000$ Finance Meter Reading (1) Handheld Meter Reading Units 6,000$ MXU and Register Replacement Program 33,000$ Total Vehicle Equipment & Capital Outlay- Finance 39,000$ Human Resources None IT GIS GIS - Phase II (Asbuilt Lining, Red Lining & USA's) - Water 12,000$ GIS - Phase II (Asbuilt Lining, Red Lining & USA's) - Sewer 8,000$ Information Systems Switch & Network Improvements & Replacements 22,000$ Archiving Hardware Solution 19,000$ Replacement DC Server 6,500$ SCADA Ford F250 with Service Body Truck Replacement 39,000$ Ford Explorer Replacement 29,000$ Timber Ridge PLC (Control System) Upgrade 16,000$ Paso Fino PLC (Control System) Upgrade 12,000$ Well-5 PLC (Control System) Upgrade 10,000$ SCADA Server Historian for Remote Data Access 13,500$ Total Vehicle Equipment & Capital Outlay- IT 187,000$ 86 Vehicle Equipment and Capital Outlay (FY 2013/14), Continued Department / Item Amount Operations Water Operations & Maint. F450 Utility Truck 76,000$ Sewer Operations & Maint. Slip Lines for Sewer Pipe Repair 60,000$ Green Crest Lift Station Motor Replacement 10,000$ Sewer Camera Cable 8,000$ Facilities Maintenance Admin Building Electrical Plug 12,000$ Total Vehicle Equipment & Capital Outlay- Operations 166,000$ TOTAL VEHICLE EQUIPMENT & CAPITAL OUTLAY 444,000$ Reconciliation by Fund Water Fund 366,000$ Sewer Fund 78,000$ TOTAL 444,000$ 87 Department Summaries 88 Board of Directors 89 Board of Directors The Board of Directors has oversight over Yorba Linda Water District and appoints the General Manager to handle day-to-day operations. The directors have the power to set water and sewer rates, establish ordinances and policies, and to approve the maintenance and construction of necessary infrastructure repairs and replacement. The Board President also appoints directors to represent the District on key external agencies and commissions in the region. This section 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 90 Performance Measures The District will track the success in fulfilling some of its performance measures through the following benchmark:  Increase District attendance at industry events, intergovernmental meetings and community events - Tracking how many events were attended for FY 11/12, as compared to previous years. 91 Accomplishments FY 2012/13  Initiated District pension reform by adopting two resolutions trimming the District’s pension packages offered to new hires.  Emphasized maintaining a culture of accountability by implementing At -Will status for all Management and Supervisory/Confidential employees hired after January 24, 2013.  Focused on enhancing agency efficiency through the funding of Organizational and Efficiency Study.  Approved the addition of a Safety Officer for FY13/14, to greater insure the District from potential liabilities and risks.  Emphasized the importance of Fiscal Responsibility through the approval of a $7 million Line of Credit, which increased the District’s debt service ratio and potential Cash-on-Hand. 92 Board of Directors Budget FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries - Directors 90,000$ 90,000$ Fringe Benefits 47,835$ 50,877$ Mandatory Benefits - Directors 8,559$ 8,400$ Total Salary Related Expenses 146,394$ 149,277$ Supplies & Services Contractual Services 1,500$ 1,500$ Dues & Memberships 5,000$ 5,400$ Board Election Expenses 63,500$ -$ Professional Services 102,000$ 102,000$ Professional Development 4,100$ 4,100$ Travel & Conferences 10,200$ 11,400$ Supplies & Services Sub-Total 186,300$ 124,400$ 93 Board of Directors Supplies & Services Budget (FY 2012/13) Category Total Sub Acct Total Detail Amt $1,500 1,500 1,500 100 200 5,000 100 42,000 60,000 $4,100 4,100 4,100 4,000 3,000 200 3,000 1,200 $124,400 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-1010-0600-00 Contractual Services 1-1010-0600-00 Contractual Services Tablet PC Data Service ($25 x 5) 1-1010-0640-00 Dues, Memberships, Subscriptions $5,400 1-1010-0640-00 Dues, Memberships & Subscriptions 5,400 ISDOC WACO CSDA 1-1010-0780-00 Professional Services $102,000 1-1010-0780-00 Professional Services 102,000 Legal Services - Retainer Legislative Consultants 1-1010-0830-00 Travel & Conferences 11,400 CRWUA (4 attendees at $1,000 each) ACWA (Spring- 2 @ $1,000, Fall- 2 @ $500) ISDOC Quarterly Colorado River Water Users Assoc CSDA (2 attendees at $1,500 each) Other Conferences Section Total 1-1010-0810-00 Training 1-1010-0810-00 Training CSDA Special District Leadership Academy Training 1-1010-0830-00 Travel & Conferences $11,400 94 Supplies & Services Summary by Department Section 95 Administration 96 Department Organization Chart 97 Administration 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 GENERAL MANAGER The Administration Department, through the General Manager and the Executive Secretary, provides staffing, scheduling, and other support to the Board of Directors. The office posts and disseminates meeting notices, agendas, minutes, sets board meeting dates, and assists in conducting board and committee meetings. The Department provides administrative services support to each of the departments. Other department activities include interagency coordination and consultation with depar tment 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 management of all external and internal communications activities and intergovernmental relations. The Public Affairs Officer directs public and media relations, legislative affairs, and provides liaison with local elected officials and community groups. The Public Affairs Office oversees the production and distribution of publications and notices to inform the public of District functions, policies, and services. This Division coordinates assigned activities with other District departments and outside agencies, and provides highly responsible and complex administrative support for the District, General Manager and Board of Directors. The office also coordinates special events and Distric t participation in water education and community events. This includes water conservation activities, and organizing and conducting tours of District facilities for students, youth groups, and the general public. 98 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 Continue to support additional training for staff WE-1 Encourage staff participation in professional organizations & 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 99 Performance Measures The District will track the success in fulfilling some of its performance measurements through the following benchmarks:  Effective Use of Communication Opportunities- Tracking number of media inquiries, requests for materials, request for presentations, etc.  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. 1 2 2 1 0 1 2 3 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 All-Hands Meetings Held Goal Actual 100 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:  Updated and unified the District’s corporate look, including a redesign of the District’s Newsletter, Website and social media sites.  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.  Augmented the District’s Bottled Water Program and expanded participation throughout the School District.  Enhanced the Annual Bottled Water Label Contest to let customers vote on line for the Contest Winner.  Furthered District efforts to raise water awareness by participating in the Children’s Water Education Festival.  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.  Managed the District’s water waste reporting program, resulting in an overall conservation level of 9%, from the calendar yea r 2004-2006 baseline. 2012 Bottled Water Label Contest Winner, Tyler Yang 101 Administration Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration General Manager 1.0 1.0 1.0 1.0 1.0 Asst. General Manager 0.5 0.5 --- Executive Secretary 1.0 1.0 1.0 1.0 1.0 Management Analyst 1.0 1.0 --1.0 Records Management Clerk #----0.5 3.5 3.5 2.0 2.0 3.5 Public Affairs Legislative Affairs Intern *-0.5 0.5 0.5 - Public Affairs Intern *-0.5 0.5 0.5 0.5 Management Analyst --1.0 1.0 - Public Information Specialist 1.0 ---- Public Information Officer -1.0 1.0 1.0 1.0 1.0 2.0 3.0 3.0 1.5 Department Totals 4.5 5.5 5.0 5.0 5.0 *Positions added during Fiscal Year 2010/11 mid-year budget adjustment # Legislative Affairs Intern replaced with Records Management Clerk position 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 Benefits 87,482$ 94,253$ Mandatory Benefits 59,511$ 51,883$ Total Salary Related Expenses 617,127$ 639,445$ Supplies & Services Communications 207,250$ 192,500$ Contractual Services 19,030$ 7,400$ Dues & Memberships 44,210$ 55,560$ Fees & Permits 225$ 225$ Insurance 1,200$ 1,240$ District Activities & Events 10,600$ 4,650$ Non-Capital Equipment -$ 3,400$ Office Expense 1,600$ 250$ Professional Services 472,300$ 505,350$ Professional Development 6,250$ 8,350$ Travel & Conferences 15,000$ 12,000$ Supplies & Services Sub-Total 777,665$ 790,925$ 103 Administration Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $250 250 250 $500 500 500 60 1,000 19,000 30,000 40 1,200 350 2,500 1,200 $3,400 3,400 3,400 $250 250 250 45,000 45,000 125,000 125,000 2,500 1,100 250 500 2,500 9,500 12,000 250,000 47,000 10,000 850 1,000 1,500 1,000 1,000 $570,450 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-2010-0580-00 Communications 1-2010-0580-10 Postage Postage 1-2010-0600-00 Contractual Services 1-2010-0600-00 Contractual Services Temp help 1-2010-0640-00 Dues, Memberships, & Subscriptions $50,060 1-2010-0640-00 Dues, Memberships & Subscriptions 50,060 Notary Assoc Membership Misc. ACWA LAFCO 1-2010-0690-00 Insurance $1,240 1-2010-0690-00 Insurance 1,240 Notary Insurance (AA) Honesty Bond (SC & AA) 1-2010-0715-00 District Activities and Events $4,050 1-2010-0715-50 Meeting Supplies 4,050 Interagency Meetings All Hands Meetings Meeting Supplies 1-2010-0750-00 Non-Capital Equipment 1-2010-0750-00 Non-Capital Equipment Employee Events- Tables, Chairs, etc. 1-2010-0760-00 Office Expense 1-2010-0760-00 Office Expense Office Supplies 1-2010-0780-00 Professional Services $505,350 1-2010-0780-00 Professional Services Organizational Efficiency Study 1-2010-0780-05 Legal Services Routine Legal 1-2010-0780-15 Records Management 28,350 Facilitation of Electronic File Clean Up Offsite Storage Records Retention Schedule Update Records Destruction Laserfiche (ECM) Policy & Procedures Manual Records Mgmt Program Policy Manual Vault Shelving 1-2010-0780-36 Water Only Related Expenses 307,000 Freeway Complex Fire Legal Services OCWD Annexation Legal Services CEQA for Annexation 1-2010-0810-00 Training $3,350 1-2010-0810-00 Training 3,350 CSDA District of Distinction GM Training Laserfiche Conference ARMA- RIM Certification Section Total 1-2010-0830-00 Travel & Conferences $2,000 1-2010-0830-00 Travel & Conferences 2,000 CUEMF (1 attendee) ACWA (1 attendees) 104 Administration Budget Section Detail (FY 2013/14) Public Affairs Section Category Total Sub Acct Total Detail Amt 6,000 6,000 17,000 17,000 20,000 20,000 45,000 20,000 3,000 3,000 17,400 25,000 5,400 5,400 5,400 5,400 17,250 17,250 1,120 780 5,000 $225 225 225 500 1,000 600 800 2,600 350 250 $5,000 5,000 5,000 2,500 1,400 2,600 1,000 2,500 $220,475Section Total 1-2020-0810-00 Training 1-2020-0810-00 Training Training 1-2020-0830-00 Travel & Conferences $10,000 1-2020-0830-00 Travel & Conferences 10,000 CAC Field Trips CAPIO Annual Conference (1 employee) PRSA Annual Best Practices Summit (1 employee) PRSA Membership Shutterstock Annual Renewal Fee CRWUA (1 employee) Mileage 1-2020-0715-00 District Activities & Events $600 1-2020-0715-50 Meeting Supplies 600 Intergovernmental Meetings Division Meetings 1-2020-0645-00 Fees & Permits 1-2020-0645-00 Fees & Permits GFOA PAFR Reviewer Fee 1-2020-0640-00 Dues, Memberships, & Subscriptions $5,500 1-2020-0640-00 Dues, Memberships & Subscriptions 5,500 OC Register/LA Times Chamber Memberships (YL, PL) CAPIO Membership 1-2020-0580-55 Water Conservation Programs MWDOC Choice Water Use Efficiency 1-2020-0600-00 Contractual Services $6,900 1-2020-0600-00 Contractual Services 6,900 Doxo Muzak Contract Conservation Rebate Prog. (Turf, Sprinklers, Appli 1-2020-0580-00 Communications 1-2020-0580-50 Water Conservation Materials 21,600 Summer Newsletter Fall Newsletter Winter Newsletter Spring Newsletter Promotional Items 1-2020-0580-40 Sponsorships Sponsorship- OC Water Summit x 2 1-2020-0580-45 Video Productions 42,400 PSA/Video Production Lobby Kiosk $192,250 1-2020-0580-05 Advertising General 1-2020-0580-10 Postage Postage 1-2020-0580-15 District Special Events Community Events (Open House, Facility Tours, etc. 1-2020-0580-35 Promotional Items 65,000 YLWD Bottled Water Primary GL Category Sub Acct No./Sub Category Detail Item Description 105 Supplies & Services Summary by Department Section 106 107 Engineering 108 Department Organization Chart 109 Engineering The Engineering Department, under the general direction of the Engineering Manager, provides the following support services: Planning, Design, Construction Management, Project Management and Record Management of all District facilities. Responsible for strategic planning, capital budget, water resources planning, environmental services, quality control, construction 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. Yorba Linda Boulevard Pipeline Project 110 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 com ply 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. 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-1 111 Performance Measures  In conformance with the requirements of the State Department of Public Health, District staff collects water samples throughout the service area on a weekly basis for water quality testing. Based on the size of the District and the number of customers, the District is required to collect 1,404 samples. The District routinely collects nearly three times as many samples on an annual basis to assure that the water delivered is safe, pure and meeting all the standards of t he Department of Public Health. In the last three years, District staff collected 4,005, 3,980 and 3,980 samples, respectively, for testing.  District Engineering staff manage multiple water and sewer projects each year, some of which may be short term, such as new fire hydrants for new or improved developments, or long term, such as water and sewer facilities for new housing developments, or new capital facilities to improve water or sewer service. Each project is set up, files established, monitored and tracked throughout its planning, construction and startup. When complete, all documentation is compiled and the files are closed. In the last three years, District staff completed and closed 55, 26 and 15 jobs, respectively. The decline in job closings is a reflection of the downturn in the economy in this time period.  As part of the District’s responsibility to monitor all water system backflow protection devices, Engineering staff provide oversight f or the testing of the devices. As necessary, District staff send notices to property owners (businesses and residential) of the need for the annual test as required by the State. Depending on the response of the prop erty 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. Accomplishments Fiscal Year 2012/13  Construction of Highland Booster Pump Station Project  Construction of Yorba Linda Blvd Pipeline Project  Construction of Green Crest Sewer Lift Station Upgrade  Construction of Well No. 20 Equipping Project  Construction of Pressure Regulating Station Upgrade Project, Phase 1  Initiated Construction of Yorba Linda Blvd Booster Station  Initiated Construction of 2012 Pipeline Replacement Project, Phase 2  Completed Northeast Area Planning Study  Completed design of Y. L. High School Park Pipeline Relocation Project  Completed negotiations with OCWD for site of Well 21  Completed negotiations with OCTA for relocation of Lakeview Ave Pipelines 112 Engineering Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Engineering Manager 1.0 1.0 1.0 1.0 1.0 Engineering Secretary 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Planning & Design Engineering Technician II 3.0 3.0 2.0 2.0 2.0 Project Coordinator ----1.0 Project Engineer 1.0 1.0 1.0 1.0 - Sr. Project Manager 1.0 1.0 1.0 1.0 1.0 7.0 7.0 6.0 6.0 4.0 Construction Construction Inspector 1.0 1.0 1.0 1.0 1.0 Construction Project Supervisor ----1.0 Project Engineer 1.0 1.0 1.0 1.0 - Sr. Construction Inspector 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Water Quality Water Quality Engineer 1.0 1.0 1.0 1.0 1.0 Water Quality Technician I ----- Water Quality Technician II*1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Department Totals 14.0 14.0 13.0 13.0 11.0 * under filled with Water Quality Technician I prior to FY 2013/14 113 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 Benefits 161,654$ 146,044$ Mandatory Benefits 125,308$ 120,547$ Total Salary Related Expenses 1,189,413$ 1,188,468$ Supplies & Services Contractual Services 61,040$ 111,380$ Dues & Memberships 2,600$ 3,063$ Fees & Permits 24,000$ 27,875$ Materials 2,000$ 2,000$ Non-Capital Equipment -$ 1,400$ Office Expense 2,150$ 2,450$ Professional Services 15,000$ 20,000$ Professional Development 4,000$ 2,950$ Travel & Conferences 3,650$ 3,300$ Supplies & Services Sub-Total 114,440$ 174,418$ 114 Engineering Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $300 300 300 $200 200 200 $800 800 800 $1,300 1-4010-0830-00 Travel & Conferences 1-4010-0830-00 Travel & Conferences Travel & Conferences Section Total 1-4010-0640-00 Dues, Memberships, & Subscriptions 1-4010-0640-00 Dues, Memberships & Subscriptions Dues, Memberships & Subscriptions 1-4010-0810-00 Training 1-4010-0810-00 Training Training Primary GL Category Sub Acct No./Sub Category Detail Item Description 115 Engineering Budget Section Detail (FY2013/14) Planning & Design Section Category Total Sub Acct Total Detail Amt $50,000 50,000 50,000 3,875 3,875 2,000 2,000 500 250 1,000 1,000 300 300 5,000 5,000 10,000 10,000 5,000 5,000 400 300 $500 500 500 $79,125 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-4020-0600-00 Contractual Services 1-4020-0600-00 Contractual Services The Chambers Group (Hidden Hills) 1-4020-0645-00 Fees & Permits $5,875 1-4020-0645-00 Fees & Permits OCWD/ Well 21 Lease Agreement Fee 1-4020-0645-20 USA Underground Service Alerts USA Underground Service Alerts 1-4020-0640-00 Dues, Memberships & Subscriptions $750 1-4020-0640-00 Dues, Memberships & Subscriptions 750 AWWA ACEE 1-4020-0760-00 Office Expense $1,300 1-4020-0760-00 Office Expense Office Expense 1-4020-0760-30 Books & Publications Library Reference Books 1-4020-0780-00 Professional Services $20,000 1-4020-0780-00 Professional Services Cathodic Protection Consulting Services 1-4020-0780-36 Professional Serviices - Water Related Water Consulting Services 1-4020-0780-39 Professional Services - Sewer Related Sewer Consulting Services 1-4020-0810-00 Training $700 1-4020-0810-00 Training 700 Certification Courses AWWA 1-4020-0830-00 Travel & Conferences 1-4020-0830-00 Travel & Conferences Cathodic Protection Section Total 116 Engineering Budget Section Detail (FY 2013/14) Construction Section Category Total Sub Acct Total Detail Amt $220 220 220 $350 350 350 $1,400 1,400 1,400 350 350 500 500 400 800 $4,020Section Total 1-4030-0810-00 Training $1,200 1-4030-0810-00 Training 1,200 Training Inspector Certification 1-4030-0750-00 Non-Capital Equipment 1-4030-0750-00 Non-Capital Equipment Inspection Related Tools & Equipment 1-4030-0760-00 Office Expense $850 1-4030-0760-00 Office Expense Office Supplies 1-4030-0760-30 Books & Publications Code Books 1-4030-0600-00 Contractual Services 1-4030-0600-50 Uniforms Uniforms 1-4030-0640-00 Dues, Memberships, & Subscriptions 1-4030-0640-00 Dues, Memberships & Subscriptions Construction Management Association of America Primary GL Category Sub Acct No./Sub Category Detail Item Description 117 Engineering Budget Section Detail (FY 2013/14) Water Quality Section Category Total Sub Acct Total Detail Amt 3,000 3,000 350 350 5,590 5,590 220 220 52,000 52,000 100 100 1,000 225 238 $22,000 22,000 22,000 $2,000 2,000 2,000 $300 300 300 $850 850 850 $2,000 2,000 2,000 $89,973 1-4040-0830-00 Travel & Conferences 1-4040-0830-00 Travel & Conferences Travel and Conferences Section Total 1-4040-0760-00 Office Expense 1-4040-0760-30 Books & Publications AWWA Books 1-4040-0810-00 Training 1-4040-0810-00 Training Training AWWA (Nguyen) 1-4040-0645-00 Fees & Permits 1-4040-0645-10 Dept of Health Services Dept. of Health Services 1-4040-0710-00 Materials 1-4040-0710-20 Wtr Quality Test Kit Reagents Wtr Quality Test Reagents 1-4040-0600-60 Microbiological Examination Microbiological Examination 1-4040-0640-00 Dues, Memberships, & Subscriptions $1,663 1-4040-0640-00 Dues, Memberships, & Subscriptions 1,663 American Academy of Environmental Engineers (NguyeABPA (Maldonado) Water Purveyor Membership American Society of Civil Engineers (Nguyen) 1-4040-0600-00 Contractual Services $61,160 1-4040-0600-00 Contractual Services System Disinfection/Blending 1-4040-0600-12 Backflow Device Rep Backflow Device Repair 1-4040-0600-25 Distrubution System Disinfection Distribution System Disinfection 1-4040-0600-50 Uniforms Uniforms Primary GL Category Sub Acct No./Sub Category Detail Item Description 118 Supplies & Services Summary by Department Section 119 Finance 120 Department Organization Chart 121 Finance 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 dedicat ion 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: Administration, Accounting, Customer Service, and Meter Reading sections. 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 accurate ly 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, espe cially for the investigation and resolving of 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. 122 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-1 123 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. 124 Accomplishments Fiscal Year 2011/12  Successfully implemented a Soft Credit Check and Customer Deposit process for new incoming water customers to the District  Staff received Microsoft Office and Cogsdale training to enhance workflow efficiencies  Successfully activated 3,250 new customer accounts  Evaluated processes and improved efficiencies within daily tasks, particularly in the areas of credit cards processes, new account setup, and payment entry functions  Successfully modified the billing system and water bill templates to reflect new water and meter rates effective July 1, 2012 125  Acquired and installed meter test bench (pictured)  Implemented an Online Customer Service Request to encompass Turn-on and Turn- off requests via the YLWD website  Converted 2 direct read routes to radio read  Installed Neptune Reading Software/Handheld Device  Successfully read 238,746 meters for water billing purposes  Successfully responded to 1,260 customer service requests for high bills, meter replacements and other services  Submitted and received a Distinguished Budget Presentation Award for FY 2012/13 from the Government Finance Officers Association for a second consecutive year 126  Successfully implemented a paperless distribution process for biweekly payroll paystubs and annual W -2’s via Doculivery  Completed the District’s FY 2011-12 CAFR, receiving an unqualified opinion and the GFOA award for Excellence in Financial Reporting for the third consecutive year  Reviewed and revised the District’s Investment Policy and submitted it for California Municipal Treasurers Association’s Certification program  Spent $835,943 to pay off the District’s PERS Side -Fund, which decreases the PERS Employer Contribution Rate by 1.43% annually over the next 13 years and will save an estimated $225,000 to $550,000 over that time  Issued $8,330,000 in Refunding Revenue Bonds, Series 2012A, which advance refunded and defeased the $8,965,000 Certificates of Participation, Series 2003 and resulted in a decrease in total debt service payments over the next 21 years by $1.72 million, and an economic gain of over $1.32 million  Re-affirmed a Water Revenue Bond Rating of AA+ with S&P and AA rating from Fitch with a stable outlook  Established a $7,000,000 Line of Credit with Wells Fargo Bank that is payable in three years at an interest rate equal to One-Month LIBOR + 0.90%, and an annual unused commitment fee of 0.35% 127 Finance Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Finance Director 1.0 1.0 --- Finance Manager --1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Accounting Accounting Assistant I 1.0 1.0 1.0 1.0 1.0 Accounting Assistant II 1.0 1.0 1.0 1.0 1.0 Financial Analyst ----- Senior Accountant 1.0 1.0 1.0 1.0 1.0 Storekeeper 1.0 1.0 --- 4.0 4.0 3.0 3.0 3.0 Customer Service/Billing Customer Service Rep I 1.0 1.0 1.0 1.0 1.0 Customer Service Rep II 1.0 1.0 1.0 1.0 1.0 Customer Service Rep III 2.0 2.0 2.0 2.0 2.0 Customer Service Supervisor 1.0 1.0 1.0 1.0 1.0 5.0 5.0 5.0 5.0 5.0 Meter Reading Meter Reader I 2.0 2.0 2.0 2.0 2.0 Meter Reader II 2.0 2.0 2.0 2.0 2.0 Meter Services Lead -1.0 1.0 1.0 1.0 Meter Services Rep.1.0 ---- 5.0 5.0 5.0 5.0 5.0 Department Totals 15.0 15.0 14.0 14.0 14.0 128 Finance Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 850,552$ 900,171$ Fringe Benefits 202,789$ 187,123$ Mandatory Benefits 117,166$ 110,671$ Total Salary Related Expenses 1,173,508$ 1,200,965$ Supplies & Services Communications 88,000$ 98,200$ Contractual Services 88,161$ 92,640$ Dues & Memberships 1,405$ 785$ Fees & Permits 95,995$ 101,365$ Materials 12,000$ 25,000$ District Activities & Events 700$ 1,050$ Maintenance 200$ 300$ Non-Capital Equipment 3,950$ 950$ Office Expense 16,600$ 14,050$ Professional Services 31,160$ 33,360$ Professional Development 4,250$ 3,160$ Travel & Conferences 4,150$ 5,300$ Uncollectible Accounts 39,000$ 25,000$ Supplies & Services Sub-Total 385,571$ 401,160$ 129 Finance Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $400 400 400 110 155 160 $400 400 400 1,200 18,960 4,000 4,000 2,700 2,000 600 300 1,500 700 500 $37,685Section Total 1-3010-0830-00 Travel & Conferences $2,700 1-3010-0830-00 Travel & Conferences 2,700 GFOA Conference CSMFO Conference CSMFO Oct Board Meeting Actuarial Valuation (OPEB) Arbitrage Consulting (2003 COP) CAFR Online 1-3010-0810-00 Training $900 1-3010-0810-00 Training 900 Continual Professional Education CDIAC Training 1-3010-0715-00 District Activities & Events 1-3010-0715-50 Meeting Supplies Meeting Supplies 1-3010-0780-00 Professional Services $32,860 1-3010-0780-00 Professional Services 32,860 CDAR Preparation Auditors Financial Plan Model Consulting 1-3010-0600-00 Contractual Services 1-3010-0600-00 Contractual Services Check signature plate 1-3010-0640-00 Dues, Memberships & Subscriptions $425 1-3010-0640-00 Dues, Memberships & Subscriptions 425 CSMFO CMTA GFOA Primary GL Category Sub Acct No./Sub Category Detail Item Description 130 Finance Budget Section Detail (FY 2013/14) Accounting Section Category Total Sub Acct Total Detail Amt $400 400 400 500 360 $110 110 110 150 435 330 275 30,000 150 25 $400 400 400 $300 300 300 9,000 9,000 3,500 3,500 $1,000 1,000 1,000 1,000 700 $48,635 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-3020-0580-00 Communications 1-3020-0580-00 Communications Publish Unclaimed List 1-3020-0600-00 Contractual Services $860 1-3020-0600-00 Contractual Services 860 Green Shades Doculivery 1-3020-0640-00 Dues, Memberships & Subscriptions 1-3020-0640-00 Dues, Memberships & Subscriptions Delia Lugo - CSMFO 1-3020-0645-00 Fees & Permits $31,365 1-3020-0645-00 Fees & Permits 1,190 CSMFO Budget Reviewer Fee GFOA CAFR Reviewer Fee GFOA Budget Award Reviewer Fee CMTA - Investment Policy Award 1-3020-0645-50 Bank Service/Fees 30,175 Analysis Fees (Avg $2550/mo) Safe Deposit Box Fee Annual Bankcard Fee 1-3020-0715-00 District Activities and Events 1-3020-0715-50 Meeting Supplies Meeting Supplies 1-3020-0730-00 Maintenance 1-3020-0730-00 Maintenance Small Office Equipment Maintenance PERS Conference CSMFO Conference 1-3020-0760-00 Office Expense $12,500 1-3020-0760-00 Office Expense Office supplies 1-3020-0760-10 Paper Paper Section Total 1-3020-0810-00 Training 1-3020-0810-00 Training Staff Training 1-3020-0830-00 Travel & Conferences $1,700 1-3020-0830-00 Travel & Conferences 1,700 131 Finance Budget Section Detail (FY 2013/14) Customer Service/Billing Section Category Total Sub Acct Total Detail Amt 800 800 2,000 2,000 95,000 95,000 200 1,400 6,000 300 50,000 17,300 1,120 1,900 1,900 10,000 10,000 27,000 43,000 $250 250 250 1,300 250 $500 500 500 $600 600 600 $200 200 200 $25,000 25,000 25,000 $284,120 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-3030-0580-00 Communications $97,800 1-3030-0580-00 Communications UPS / Fed Ex / Other 1-3030-0580-10 Postage Postage Metered 1-3030-0580-22 Postage - Infosend Postage - Infosend 1-3030-0600-00 Contractual Services 1,600 Post Office Box Post Master - Lockbox 1-3030-0600-21 Customer Credit Check 6,300 Online - Credit Checks Online - Utility Exchange 1-3030-0600-22 Printing of Bills - Infosend 68,420 Mailing Service Info Send E-Bill Fees DOXO 1-3030-0600-30 Warranties & Service Contracts Meter & Scale Lease Agreement 1-3030-0600-55 Answering Service Phone Answering Service 1-3030-0645-00 Fees & Permits $70,000 1-3030-0645-50 Bank Services/Fees 70,000 Lock Box Services Credit Card & Auto Dr Processing 1-3030-0600-00 Contractual Services $88,220 1-3030-0715-00 District Activities and Events 1-3030-0715-50 Meeting Supplies Meeting Supplies 1-3030-0760-00 Office Expense $1,550 1-3030-0760-00 Office Expense 1,550 Forms/Pads/Tags/Deposit Slips Postage Machine Supplies 1-3030-0780-00 Professional Services 1-3030-0780-09 Collection Services Collection Agency Fee 1-3030-0810-00 Training 1-3030-0810-00 Training Customer Service Training Section Total 1-3030-0830-00 Travel & Conferences 1-3030-0830-00 Travel & Conferences Mileage 1-3030-0850-00 Uncollectible Accounts 1-3030-0850-00 Uncollectible Accounts Uncollectible Accounts 132 Finance Budget Section Detail (FY 2013/14) Meter Reading Section Category Total Sub Acct Total Detail Amt 2,410 2,410 750 750 $250 250 250 $25,000 25,000 25,000 500 200 250 250 500 500 160 160 $700 700 700 $30,720 1-3040-0830-00 Travel & Conferences 1-3040-0830-00 Travel & Conferences AWWA Conference Section Total 1-3040-0810-00 Training $660 1-3040-0810-00 Training Training classes 1-3040-0810-40 Certificate Reimbursement Certificate Reimbursement 1-3040-0750-00 Non-Capital Equipment $950 1-3040-0750-00 Non-Capital Equiptment 700 Meter Shop Equipment Construction Meter Locks 1-3040-0750-10 Hand and Power Tools Hand Tools/Meter Lid Bars/Lifters 1-3040-0640-00 Dues, Memberships, & Subscriptions 1-3040-0640-00 Dues, Memberships & Subscriptions AWWA 1-3040-0710-00 Materials 1-3040-0710-58 Registers Registers 1-3040-0600-00 Contractual Services $3,160 1-3040-0600-00 Contractual Services Neptune Maintenance Agreement 1-3040-0600-50 Uniform Uniforms Primary GL Category Sub Acct No./Sub Category Detail Item Description 133 Supplies & Services Summary by Department Section 134 135 Human Resources 136 Department Organization Chart 137 HUMAN RESOURCES Under the direction of the Human Resources & Risk Manager, the human resources function at the District has evolved from a custodian of personnel records and recruiting, to a strategic partner at the center of the organization. As such the Human Resources Department adopted the Department’s slogan, Your Team Builder, in 2012. The Human Resources Department is responsible for the administration and coordination of the District’s personnel system, risk management and safety programs . The Department works to ensure that the District gets the most out of its employees through the implementation of sound personnel policy and by p roviding professional development opportunities for employees. Section Responsibilities: HUMAN RESOURCES ADMINISTRATION This Section supports operating departments by providing a wide range of personnel services such as benefits administration (health, dental, optical, life insurance and an employee assistance program), coordinating recruitment and selection, classification and compensation programs, as well as the administration of the District’s personnel rules, policies and procedures. Other functions include the maintenance of employee personnel files, training records, medical files and employee p erformance evaluation reports. 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, procedu res 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. 138 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. Othe r functions include the coordination and implementation of safety and training programs ensuring compliance with federal and state laws regarding occupational health and safety regulations. 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. 139 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. 140 During FY 2010/11, six recruitments were conducted resulting in 618 applications processed, four recruitments resulting in 299 applications were proce ssed in FY 2011/12, and eleven recruitments were conducted resulting in 727 applications processed in FY 2012/13. 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 d ay 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 t ime. 141 Accomplishments Fiscal Year 2012-13  Revised the job descriptions for both the Operations Manager and General Manager.  Revised the Personnel Rules to include the implementation of At-Will status for all Management and Supervisory/Confidential employees hired after January 24, 2013.  Developed a draft Employment Contract for the unfilled General Manager position.  Completed negotiations with the Employee’s Association for a three -year Memorandum of Understanding to run from July 1, 2012 through June 30, 2015.  Revised/developed/implemented Rules, Policies and Procedures: o Education/Certification/License Reimbursement Policy (in process) o Heat Illness Prevention Program o Confined Space Entry Program (in process) o Safety Footwear Allowance Policy  Arranged for District-wide First AID/CPR/AED Training o Refresher Training conducted o Initial Training conducted 142  Arranged for the Annual Hearing Testing to be conducted on site.  Coordinated with the Engineering Department to arrange to have an Arc Flash Assessment conducted at four District sites.  Conducted/coordinated the following workplace training: o Confined Space Entry o Heat Illness Prevention Program o Arc Flash Training o Verbal Judo o Accident Investigation o GHS preliminary training o GHS mandated training o AB340 Public Employees’ Pension Reform Act (PEPRA) o Affordable Care Act Business Rules Training  Coordinated attendance at the following LCW workshops: Attendees o Finding the Facts: Disciplinary & Harassment Complaints 1 o Orange County Human Resources Consortium 2 o Public Sector Employment Law Update 2 o Managing the Marginal Employee 24 o Managing Through Performance Evaluation 22 o Performance Management, Evaluation, Documentation And Discipline 1 o Public Sector Employment Law Conference (two days) 3 o Accommodating Bad Behavior 2 o District-wide Harassment, Discrimination, Retaliation Training  Coordinated attendance for ten employees at the ACWA/JPIA Training Conference  Coordinated the annual Employee Recognition dinner.  Arranged for all aspects of the annual Benefits Fair and annual flu shots. 143 Human Resources Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Human Resources & Risk Mgr -1.0 1.0 1.0 1.0 Human Resources Manager 1.0 ---- Human Resources Analyst 1.0 1.0 1.0 1.0 1.0 Human Resources Clerk ----0.5 2.0 2.0 2.0 2.0 2.5 Risk Management Human Resources Technician ----1.0 Personnel Technician 1.0 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 Totals 3.0 3.0 3.0 3.0 4.5 144 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 Benefits 55,445$ 76,905$ Mandatory Benefits 38,785$ 41,977$ Total Salary Related Expenses 373,985$ 496,660$ Supplies & Services Communications 4,500$ 14,000$ Contractual Services 11,450$ 37,500$ Dues & Memberships 5,475$ 5,500$ Insurance 278,000$ 298,000$ Materials 1,000$ 1,000$ District Activities & Events 6,500$ 17,650$ Office Expense 700$ 725$ Professional Services 114,000$ 68,500$ Professional Development 4,000$ 24,900$ Travel & Conferences 1,500$ 7,000$ Supplies & Services Sub-Total 427,125$ 474,775$ 145 Human Resources Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt 2,000 2,000 12,000 12,000 700 500 900 1,500 3,000 10,000 700 700 1,200 1,200 600 1,200 400 200 50 3,200 600 500 500 3,000 2,000 4,000 650 1,000 2,000 2,000 3,000 3,000 1,000 1,000 200 200 100 225 55,000 55,000 12,000 12,000 2,000 4,500 2,000 10,000 600 3,000 1,600 800 $147,925 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-7010-0580-00 Communications $14,000 1-7010-0580-05 Advertising Job Advertising Expenses 1-7010-0580-10 Testing Recruitment Expenses - WRIB/Assessments 1-7010-0600-00 Contractual Services $20,300 1-7010-0600-00 Contractual Services 16,600 EE Relations Flex Advantage COBRA Solutions Shred-it Neo Gov- Online Applications Neo Gov- Performance Evaluations 1-7010-0600-10 DOT Physicals DOT Physicals 1-7010-0600-20 Post-Employment Physicals Post-Employment Physicals 1-7010-0600-30 Health & Welfare 1,800 Hep B Flu Shots 1-7010-0640-00 Dues, Memberships & Subscriptions $4,450 1-7010-0640-00 Dues, Memberships & Subscriptions 4,450 CALPELRA Annual Dues SHRM Membership Jobs Available Subscription LCW Consortium PELRAC 1-7010-0715-00 District Activities & Events $17,150 1-7010-0715-00 District Activities & Events District Activities & Events 1-7010-0715-10 District Events - Employee Picnic 5,000 Employee Recognition Event Employee Picnic 1-7010-0715-20 District Events - Employee Recognition 5,650 Retiree Event (2) Retiree Recognition (2) Service Recognition 1-7010-0715-30 Distirct Events - Benefit Fair Benefit Fair 1-7010-0715-40 District Events - Employee Promotional Items Employee Promotional Items 1-7010-0715-50 Meeting Supplies Meeting/Training Supplies 1-7010-0760-00 Office Expense $525 1-7010-0760-00 Office Expense Office Supplies 1-7010-0760-30 Books & Publications 325 Books & Publications Public Retirement Journal 1-7010-0780-00 Professional Services $67,000 1-7010-0780-05 Legal Services Liebert Cassidy Whitmore Employment Law 1-7010-0780-55 Investigations Normb Traub & Associates- Invest & Background Public Retirement Seminar (4 employees) 1-7010-0810-00 Training $18,500 1-7010-0810-00 Training 18,500 CPS Human Resources Academy Training Verbal Judo Training (District-wide) On-going Job Training Great Plains Training- HR Module Section Total 1-7010-0830-00 Travel & Conferences $6,000 1-7010-0830-00 Travel & Conferences 6,000 PELRAC (3 employees) LCW (3 employees) NeoGov (1 employee) 146 Human Resources Budget Section Detail (FY 2013/14) Risk Management Section Category Total Sub Acct Total Detail Amt 15,000 200 $100 100 100 8,000 8,000 230,000 230,000 60,000 60,000 $200 200 200 $1,500 1,500 1,500 1,000 400 $1,000 1,000 1,000 $317,400 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-7020-0600-00 Contractual Services $15,200 1-7020-0600-00 Contractual Services 15,200 Arc-Flash Assessments (9 sites) AED Medical Director Oversight 1-7020-0640-00 Dues, Memberships & Subscriptions 1-7020-0640-00 Dues, Memberships & Subscriptions PARMA Membership 1-7020-0690-00 Insurance $298,000 1-7020-0690-10 Tort Claims Tort Claims - < 15K 1-7020-0690-20 Liability Insurance ACWA-JPIA Liability Insurance 1-7020-0690-30 Property Insurance ACWA-JPIA Property Insurance 1-7020-0715-00 District Activities & Events 1-7020-0715-50 Meeting Supplies Meeting Supplies 1-7020-0780-00 Professional Services 1-7020-0780-00 Professional Services First Aid-Workers Compensation 1-7020-0810-00 Training $1,400 1-7020-0810-00 Training 1,400 Risk Management Training PARMA Workshop 1-7020-0830-00 Travel & Conferences 1-7020-0830-00 Travel & Conferences PARMA Conference (1 employee) Section Total 147 Human Resources Budget Section Detail (FY 2013/14) Safety Section Category Total Sub Acct Total Detail Amt $2,000 2,000 2,000 500 100 350 $1,000 1,000 1,000 $300 300 300 $200 200 200 $5,000 5,000 5,000 $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 148 Supplies & Services Summary by Department Section 149 Information Technology 150 Department Organization Chart 151 Information Technology The Information Technology Department provides IT support for the District’s computer network, including the operation, maintenance, upgrade, and repair of network hardware and District employee workstations. Additionally, the IT Department manages the day-to-day operation of the network datacenter and servers, District’s communications systems, security and software applications. The IT Department is also responsible for creating, testing and evaluating new software applications and hardware being considered for purchase by the District to insure they perform in our current and future infrastructure. The Department is responsible for the administration and coordination of the District’s information systems and computer network, inc luding 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. 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. 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 di splay 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 r ecords, surveys and assessor maps; performing field data collection; programming and scripting for customization of software applications. SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SCADA is responsible for the communications and the hardware relat ed 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. 152 Additionally, SCADA is responsible for all sensors in the field that collec t and save about 5 years of historical information. The SCADA system provides Operators advanced fully automated controls 24/7/365 to meet the Districts objectives. 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 153 YLWD Data Center Note: Server Up Time refers to the percentage of time each server is available for usage. Includes planned maintenance shutdowns. 154 Accomplishments FY 2012/13  Successfully Implemented Computer Maintenance and Management System (CMMS) program for hydrants, valves, dead-end flushing and sewers.  Improved internet bandwidth with new contract with Time Warner replacing cable internet with fiber internet solution.  Negotiated new cell phone contract with Verizon Communications replacing Sprint/Nextel  Negotiated a new 3-year lease for Operations copier  Tablets deployed to all District Managers and Executive Secretary  Purchased mobile 80” Interactive Display for Board Training Room  Virtualized 6 District servers  Implemented iSCSi network for Storage Consolidation Project  Completed city sewer GIS conversion  Printed & distributed an Updated Water Atlas Book  Provided GIS Data and support for Northeast Planning Study & Hydraulic Model  SCADA Segmentation Security project completed  Replaced and reprogrammed Hidden Hills PLC  Replaced and reprogrammed Spring View PLC  Upgraded Wonderware SCADA software to latest release & improved password security  Wireless system installed at Elk Mt. for redundant communications 155 Information Technology Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 Proposed FY 2012/13 Proposed FY 2013/14 Administration Assistant General Manager 0.5 0.5 --- Information Systems Manager --1.0 1.0 1.0 0.5 0.5 1.0 1.0 1.0 Information Systems Information Systems Admin.1.0 1.0 1.0 1.0 1.0 Information Systems Tech I 1.0 1.0 1.0 1.0 1.0 Information Systems Tech II 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 GIS GIS Administrator -1.0 1.0 1.0 1.0 GIS Technician 1.0 0.5 0.5 0.5 0.5 1.0 1.5 1.5 1.5 1.5 SCADA Instrumentation Technician 1.0 1.0 1.0 1.0 1.0 SCADA Administrator 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Department Totals 6.5 7.0 7.5 7.5 7.5 Budgeted Positions 156 Information Technology Department Budget (FY 2013/14) FY 2012/13 Amended Budget FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 626,082$ 633,879$ Fringe Benefits 114,468$ 100,390$ Mandatory Benefits 85,016$ 76,809$ Total Salary Related Expenses 828,066$ 813,578$ Supplies & Services Contractual Services 137,540$ 138,520$ Data Processing 135,340$ 170,730$ Dues & Memberships 1,327$ 1,327$ Materials 14,275$ 11,275$ District Activities & Events 300$ 300$ Maintenance 76,370$ 84,950$ Non-Capital Equipment 67,500$ 98,100$ Office Expense 10,475$ 19,175$ Professional Services 43,000$ 56,000$ Professional Development 7,500$ 16,800$ Travel & Conferences 6,000$ 9,300$ Supplies & Services Sub-Total 499,627$ 606,477$ 157 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) 158 IT Budget Section Detail (FY 2013/14) Information Systems Section Category Total Sub Acct Total Detail Amt 1,500 240 4,500 11,000 4,000 20,000 3,780 21,500 21,500 15,000 15,000 12,000 16,500 0 3,500 20,000 4,000 44,000 12,000 10,000 4,780 450 800 200 250 2,000 2,000 6,000 650 300 2,250 200 1,400 200 150 100 500 30 30 25 250 12 400 400 100 100 400 100 200 400 600 200 $300 300 3001-6020-0715-00 District Activities and Events 1-6020-0715-50 Meeting Supplies Meeting Supplies DVI, VGA, DB9, Display Port, HDMI, USB cables 1-6020-0710-60 Hardware Supplies 1,200 Hardware Supplies, AA & AAA batteries Desktop peripherals USB Drives USB Keys, SD / micro SD Cards 1-6020-0710-00 Materials $2,400 1-6020-0710-00 Materials Materials 1-6020-0710-49 Power Strips Power Strips 1-6020-0710-51 Cabling 700 Duplex 50/125 LC/LC fiber, CAT6A, CAT5e patch cabl Adapters 1-6020-0640-00 Dues, Memberships, & Subscriptions $847 1-6020-0640-00 Dues, Memberships & Subscriptions 847 MS TechNet Plus Subscription Smart Computing CPU PCWorld Misc Memberships Maximum PC PageR Monitoring Barracuda Message Archiver Energizer Annual Renewa1-6020-0620-47 Cell Phone Supplies 450 Batteries Holsters & Covers Chargers Kiwi Cat Tools Lenel Onguard Software Support Agreement Renewal Netmotion Mobility XE Premium Software MaintenanceTrend Micro NeatSuite Antivirus & Spyware (90 lic. VMWare vSphere (Essentials Plus Kit) Maintenance 1-6020-0620-30 Hardware Subscription Renewals 4,800 Barracuda Spam Firewall Energizer Annual Renewal BDR Monthly Charge for Offsite Backup Storage Watchguard x1250e Firewall UTM Renewal GP & Cogsdale annual Maintenance CityWorks Annual Maintenance Solar Winds Orion Monitoring Tool Maintenance Laserfiche Software Assurance Plan (LSAP) Enterprise Leave Manager for Dynamics GP Maint. Solar Winds Engineering's Toolkit Renewal 1-6020-0620-00 Data Processing $115,230 1-6020-0620-10 Software Purchases 23,500 New Software Solar Winds Mgmt. (APN, IP Address Mon.) CMMS Licensing 1-6020-0620-20 Software License Renewals 86,480 Novus Agenda Maintenance Renewal 1-6020-0600-33 Mobile Broadband Service Verizon Broadband Aircard Service inc. CMMS 1-6020-0600-34 Communication Lines 28,500 Time Warner Cable & Dedicated Internet Access 20x2 AT&T District Lines 1-6020-0600-30 Warranties & Service Contracts 27,780 Dell Hardware Service Contracts RMJ Tech. GPS Vehicle Tracking Service APC Symmetra Data Center UPS On-Site Service Renew1-6020-0600-32 Service for Cell Phones Cell Phone Service (Verizon) 1-6020-0600-00 Contractual Services $110,020 1-6020-0600-00 Contractual Services 1,740 Security Solutions: Annual Fire & Burglar Alarm Mo District Web Site Hosting 1-6020-0600-20 Lease Agreements 15,500 Konica Minolta Operations Copier Lease Konica Minolta Copier Leases for Admin Building Primary GL Category Sub Acct No./Sub Category Detail Item Description 159 IT Budget Section Detail (FY 2013/14) Information Systems Section, Continued Category Total Sub Acct Total Detail Amt 1,000 1,000 2,000 2,000 400 200 400 400 1,500 1,500 300 1,600 2,000 10,000 6,000 600 4,800 6,400 10,000 800 1,000 200 2,200 200 800 800 500 1,000 1,500 1,000 300 300 100 100 125 9,000 50 200 200 400 200 2,000 2,000 3,500 18,000 10,000 1,000 1,000 2,500 8,000 400 2,100 1,000 $344,672 Primary GL Category Sub Acct No./Sub Category Detail Item Description Section Total 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) 1-6020-0810-00 Training $10,500 1-6020-0810-00 Training 10,500 VM Ware Training GP Training 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 160 IT Budget Section Detail (FY 2013/14) GIS Section Category Total Sub Acct Total Detail Amt 4,700 2,000 3,200 6,000 500 3,500 1,500 $5,500 5,500 5,500 8,500 8,500 100 100 $2,000 2,000 2,000 200 500 $38,200Section Total 1-6030-0810-00 Training 1-6030-0810-00 Training GIS Training 1-6030-0830-00 Travel & Conferences $700 1-6030-0830-00 Travel & Conferences 700 Mileage and Travel Reimbursement GIS ESRI User Conference AutoCAD & Map 3D Maintenance 1-6030-0750-00 Non-Capital Equipment 1-6030-0750-20 Printers New Plotter 1-6030-0760-00 Office Expense $8,600 1-6030-0760-21 Printer Supplies Print Sewer Atlas & Atlas Supplies( Paper & binder 1-6030-0760-30 Books & Publications Books 1-6030-0620-00 Data Processing $21,400 1-6030-0620-20 Software License Renewals 21,400 InfoWater Renewal & Upgrade Floating License Freeance Maintenance ArcEditor Concurrent Maintenance (2) ArcGIS Server Standard Enterprise Maintenance ArcView Single Use Maintenance ArcInfor Concurrent Maintenance Primary GL Category Sub Acct No./Sub Category Detail Item Description 161 IT Budget Section Detail (FY 2013/14) SCADA Section Category Total Sub Acct Total Detail Amt 1,500 1,500 2,500 23,000 23,000 1,600 1,600 26,000 6,500 230 250 2,200 2,200 1,800 1,800 375 3,000 1,500 2,000 2,000 18,000 18,000 1,800 1,800 4,650 4,650 8,500 8,500 11,000 3,100 1,500 500 800 10,000 10,000 1,800 1,800 4,500 4,500 4,000 4,000 5,000 5,000 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-6040-0600-00 Contractual Services $28,500 1-6040-0600-30 Warranties & Service Contracts 5,500 Dell Servers Service contracts Cisco Smartnet premium (for Cisco 1842 routers) Cisco Smartnet premium (for Cisco 3825 router) 1-6040-0600-34 Communication Lines AT&T Circuits (T1, DSO's, 1MB's) 1-6040-0620-00 Data Processing $34,100 1-6040-0620-10 Software Purchases Misc. software 1-6040-0620-20 Software License Renewals 32,500 Wonderware Premium Support PLC Programing Support-Proworks32,Concept, & Unity1-6040-0640-00 Dues, Memberships, & Subscriptions $480 1-6040-0640-00 Dues, Memberships & Subscriptions 480 AWWA International Society of Automation 1-6040-0710-00 Materials $8,875 1-6040-0710-50 Electrical Supplies Electrical Supplies 1-6040-0710-60 Hardware Supplies Hardware Supplies 1-6040-0710-78 Meters & Sensors 4,875 Integral Manflods for Flow & Pressure Meters Level Indicators Flow Meter 1-6040-0730-00 Maintenance $77,150 1-6040-0730-15 Flow Meter Calibration Flow Meter Calibration 1-6040-0730-20 Electrical General Maintenance Electrical General Maintenance 1-6040-0730-25 Electrical Motor Control Center Work Motor Control Center 1-6040-0730-30 Cabling & WAN Communication Conduit Replacement / Wiring Replacement / WAN Com 1-6040-0730-40 Radio repairs & Servicing Radio repairs & Servicing 1-6040-0730-45 PLC Hardware 16,900 M340 system / PLC's Module replacements Terminal Blocks/Other parts Power supplies & componets Signal Conditioners-Converters 1-6040-0730-52 PLC Software PLC - SCADA Modifications 1-6040-0730-55 Security & Gas detectors Security & Gas detectors 1-6040-0730-60 UPS & Back-up Power systems UPS & Back-up 24VDC Power systems 1-6040-0730-61 Cooling A/C Servicing Cooling & A/C Service 1-6040-0730-62 Instrumentation Instrumentation 162 IT Budget Section Detail (FY 2013/14) SCADA Section, Continued Category Total Sub Acct Total Detail Amt 4,500 4,500 2,000 2,000 8,000 8,000 1,950 1,950 1,550 1,550 6,500 6,500 5,000 5,000 8,000 8,000 5,800 5,800 $300 300 300 10,500 11,000 2,400 1,400 500 $1,400 1,400 1,400 $219,905 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-6040-0750-00 Non-Capital Equipment $43,300 1-6040-0750-05 Servers Server 1-6040-0750-07 Notebooks SCADA replacement laptop 1-6040-0750-09 Networking Equipment Field Routers, Switches, Fiber Device Servers, Mod 1-6040-0750-10 Desktops SCADA replacement 1-6040-0750-30 Tools & Equipment Tools & Equipment 1-6040-0750-35 Security Security 1-6040-0750-55 PLCs & Panels PLCs & Panels 1-6040-0750-65 Electrical Upgrades Electrical Upgrades 1-6040-0750-70 Redundant SCADA Communications Radio Systems Radio systems Communications & tower 1-6040-0760-00 Office Expense 1-6040-0760-30 Books & Publications Manuals/Books/Magazines 1-6040-0780-00 Professional Services $21,500 1-6040-0780-20 Software Consulting 21,500 PLC program Conversions to Unity SCADA system programing 1-6040-0810-00 Training $4,300 1-6040-0810-00 Training 4,300 Wonderware training PLC programing training Awwa training 1-6040-0830-00 Travel & Conferences 1-6040-0830-00 Travel & Conferences Awwa Conference Section Total 163 Supplies & Services Summary by Department Section 164 165 Operations 166 Department Organization Chart 167 Operations Under the direction of the Operations Manager, the Operations Department is responsible for maintaining and overseeing the District’s water storage, production, pumping and distribution systems; sewer collection systems; production water wells and related equipment; fleet rolling stock and stationary equipment mechanical maintenance. The Operations Department maintains the water distribution system and ensures it is running properly in order to provide safe, reliable drinking water to the District’s customers. 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. Section Responsibilities OPERATIONS ADMINISTRATION The Operations Administration section is composed of three employees that perform the day-to-day supervision and administration of water and sewer maintenance, water production, materials procurement and inventory work. The depa rtment’s safety and risk management program are also emphasized in this section. 168 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 num ber of work tasks for each crew, based on a 12 month period, are as follows:  Leak Crew - composed of five crew members; conducts repairs to approximately 22 main line breaks and 50 service lines, and replacement of 150 lines; replacement of 120 Angle Meter Stops (AMS) valves; installation of 140 new meters; and replacement of 150 stuck meters.  Valve Crew - composed of six crew members. This crew operates, as part of the District’s Preventive Maintenance (PM) program, one half of the District’s 10,706 system valves, repairs approximately 30 valves and replaces approximately fifty valves annually. Additionally, this crew 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.  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 estima ted that approximately 100 hydrants will need repair and approximately 50 will be replaced during the coming fiscal year. This crew’s additional related duties include:  Servicing Air Vac Air Release (AVAR) valves – The crew services approximately 330 system AVARs annually. It is estimated that approximately eight will be repaired and fifteen will be replaced during the year.  Water Main Flushing – The crew flushes all dead end mains (155) twice per year. Additionally, the crew performs any formal flushing requests which average about fifty per year.  Servicing of system Pressure Control Valves (PCVs). Setting and servicing is done annually to approximately 150 valves. Additionally, PCV adjustments are made as requests arise from the Production Division.  Fire Flow Testing - This crew conducts the physical hydrant testing when requested by the District’s Engineering Department. There is an average of twelve flow tests per year. 169  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. 170 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. Sewer Collection Crew – consists of seven members. This crew performs maintenance tasks that are intended to keep the collection system performing as designed and to extend the life of assets where possible. The system maintenance tasks are as follows:  Main line cleaning – The crew cleans approximately 235 miles of sewer main lines annually. This maintenance includes cutting of intrusive tree roots from the sewer lines where encountered.  Enhanced Maintenance Areas (EMAs) – EMAs are those areas that require attention more than just once per year. The District has 45 EMAs that are cleaned quarterly and 49 that are cleaned monthly.  CCTV Inspection – Inspection of the District’s sewer lines is conducted at a rate of one sixth of the system or 39 miles yearly. Damage found to the main lines is prioritized for repair and dealt with accordingly.  Approximately twenty four line repairs were completed in addition to eight manholes being rehabilitated during fiscal year 2011 -2012.  Sewage Lift Stations – Two sewage lift stations are operated and maintained by this crew. They assure the stations are operational and respond to any station SCADA alarms. 171 WATER PRODUCTION The primary objective of the Production S ection 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 conveyance, water storage, water disinfection, and water treatment systems. The primary assets in the distribution system include 38 booster pumps, 10 water wells, 6 chlorine generating systems, 12 chlorine analyzers, 3 im port 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. Activities performed by the Production Section include, overseeing and performing the operation and maintenance of the system’s assets, ensuring re servoirs have sufficient water volume 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. 172 MECHANICAL SERVICES This section is composed of three mechanics, which provide for the maintenance and repair to the District’s vehicle fleet, heavy equipment, stationary engines, pumps, and assorted small equipment. Additionally, they provide interface and compliance reporting to regulatory agencies such as: AQMD, CARB, OCFA, EAP, BAR and OCHCA on behalf of YLWD. This section is responsible for the District’s following assets: Rolling Stock:  Maintains 54 vehicles, including 2 sewer combo trucks, 1 hydro excavator and 4 dump trucks, 3 backhoes, 1 forklift, and 12 trailers used for emergency pumps, generator, light boards, air compressors, etc. Small Equipment:  Maintains over 60 pieces of small equipment including pneumatic pavement breakers, soil tamps, water pumps, electrical generators, air compressors, concrete and wood saws, etc. Large Stationary Internal Combustion Engines:  Maintains the engines that are the prime movers for 2 large generators, 4 deep well water pumps, and 8 water system booster pumps. FACILITIES MAINTENANCE One staff member oversees this section and is responsible for the maintenance and upkeep of District buildings and facilities sites. The staff interfaces and oversees work of hired contractors as it relates to facility maintenance.  Landscape Maintenance - all services both to maintain the District’s primary site as well as performing weekly, monthly, and quarterly tasks at all of the District’s pump and reservoir locations.  Electrical Repairs - all repairs to building lighting both inside and out in addition to any electrical problems at other District sites.  Janitorial Maintenance - interface and oversight to assure that contract terms are being met.  AC and Heating - oversight for service scheduled quarterly at the Miraloma facility, including the warehouse and operations buildings.  Fire sprinkler and equipment inspection required per OCFA’s annual reporting requirements.  Responsible for the hiring of contractors to provide road and compound type repairs, and miscellaneous fence and building repairs. 173  Staff in this section works with the Public Affairs staff to support District activities such as coordinating bottle water deliveries and setting up for special events, etc.  Current projects include working with the Production Division in repairing and painting fencing at reservoir sites. This is part of an ongoing upkeep program at these sites. 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-1 174 175 Operations Personnel Summary Department FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Proposed FY 2013/14 Administration Operations Assistant 1.0 1.0 --- Operations Assistant/Storekeeper --1.0 1.0 1.0 Operations Manager 1.0 1.0 1.0 1.0 1.0 Water Maintenance Superintendent 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Water Operations & Maintenance Maint. Distribution Operator II 5.0 5.0 5.0 7.0 7.0 Maint. Distribution Operator III 2.0 3.0 3.0 3.0 3.0 Maintenance Worker I 6.0 6.0 6.0 5.0 5.0 Sr. Maint. Distribution Operator 3.0 3.0 3.0 3.0 3.0 16.0 17.0 17.0 18.0 18.0 Sewer Operations & Maintenance Maint. Distribution Operator II 2.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator III 1.0 1.0 1.0 1.0 1.0 Maintenance Worker I 1.0 2.0 5.0 4.0 4.0 Sr. Maint. Distribution Operator 1.0 1.0 1.0 1.0 1.0 5.0 5.0 8.0 7.0 7.0 Water Production Chief Plant Operator 1.0 1.0 1.0 1.0 1.0 Senior Plant Operator 1.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator II -1.0 --- Maint. Distribution Operator III 1.0 ---- Maintenance Worker I 1.0 ---- Plant Operator II 3.0 3.0 3.0 3.0 3.0 7.0 6.0 5.0 5.0 5.0 Mechanical Services Mechanic II 1.0 1.0 1.0 1.0 1.0 Mechanic III 1.0 1.0 1.0 1.0 1.0 Senior Fleet Mechanic 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Facilities Maintenance Facilities Maintenance 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Department Totals 35.0 35.0 37.0 37.0 37.0 176 Operations Department Budget (FY 2013/14) FY 2012/13 Amended FY 2013/14 Budget Expenses (Operating) Salary Related Expenses Salaries 2,570,777$ 2,650,069$ Fringe Benefits 568,404$ 556,290$ Mandatory Benefits 401,181$ 385,973$ Total Salary Related Expenses 3,648,362$ 3,700,332$ Supplies & Services Communications 3,500$ 500$ Contractual Services 170,600$ 153,900$ Dues & Memberships 2,175$ 700$ Fees & Permits 31,100$ 37,900$ Materials 460,750$ 548,500$ District Activities & Events 500$ 1,500$ Maintenance 305,400$ 393,900$ Non-Capital Equipment 39,100$ 34,100$ Office Expense 9,000$ 9,500$ Professional Services 10,000$ -$ Professional Development 16,000$ 10,900$ Travel & Conferences 4,900$ 4,150$ Utilities 85,000$ 90,800$ Vehicle Expense 333,900$ 367,150$ Supplies & Services Sub-Total 1,471,925$ 1,653,500$ 177 Operations Budget Section Detail (FY 2013/14) Administration Section Category Total Sub Acct Total Detail Amt $9,000 9,000 9,000 $1,500 1,500 1,500 3,500 3,500 400 400 1,500 1,500 100 100 4,000 4,000 500 500 300 300 100 100 300 300 500 500 $21,700 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5010-0710-00 Materials 1-5010-0710-65 PPE Equipment PPE Equipment 1-5010-0715-00 District Activities and Events 1-5010-0715-50 Meeting Supplies Meeting Supplies $9,500 1-5010-0760-00 Office Expense Misc Supplies 1-5010-0760-10 Paper Paper Supplies 1-5010-0760-20 Printer Ink Printer Ink 1-5010-0760-30 Books & Publications Manuals/Books/Magazines Registration 1-5010-0760-40 Breakroom Supplies Breakroom Supplies 1-5010-0810-00 Training $800 1-5010-0810-00 Training Training 1-5010-0810-40 Certificate Reimbursment Certificate Reimbursement 1-5010-0760-00 Office Expense Section Total 1-5010-0830-00 Travel & Conferences $900 1-5010-0830-10 Travel Travel 1-5010-0830-30 Meals Meals 1-5010-0830-40 Registration 178 Operation Budget Section Detail (FY 2013/14) Water Operation & Maintenance Section Category Total Sub Acct Total Detail Amt $9,700 9,700 9,700 2,000 2,000 12,000 12,000 5,500 5,500 27,500 27,500 15,000 15,000 3,000 3,000 60,000 60,000 75,000 75,000 140,000 140,000 10,000 10,000 7,000 7,000 8,000 8,000 1,500 1,500 3,000 3,000 85,000 85,000 14,500 14,500 3,500 3,500 3,000 3,000 5,000 5,000 165,000 165,000 35,000 35,000 700 700 500 500 8,000 8,000 1,000 1,000 4,500 4,500 1,000 1,000 300 300 200 200 500 500 $706,900 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5020-0600-00 Contractual Services 1-5020-0600-50 Uniforms Uniforms 1-5020-0645-00 Fees & Permits $19,500 1-5020-0645-25 NPDES/RWQCB NPDES Deminimus (RWQCB) 1-5020-0645-45 Landfill (Orange County & Dan Copp) Landfill (Orange County & Dan Coop) 1-5020-0645-55 Encroachment Permits Encroachment Permits 1-5020-0710-00 Materials $456,000 1-5020-0710-05 Road Material Road Material 1-5020-0710-13 Air-Vac Parts Air-Vac parts 1-5020-0710-15 Cla-Valve Parts Cla Valve Parts 1-5020-0710-25 Hydrant Repair Parts Hydrant Repair Parts 1-5020-0710-30 Valve Repair Parts Valve Repair Parts 1-5020-0710-40 Replacement Meters Replacement Meters 1-5020-0710-50 Replacement MXU MXU's 1-5020-0710-55 Meter Boxes/Lids/Vaults Meter Boxes/Lids/Vaults 1-5020-0710-60 Hardware Supplies Hardware Supplies 1-5020-0710-81 Welding Supplies Welding Supplies 1-5020-0710-85 Cleaning/Painting Supplies Cleaning/Painting Supplies 1-5020-0710-90 Water Service Repair Parts Water Service Repair Parts 1-5020-0710-94 Miscellaneous Warehouse Parts Miscellaneous Warehouse Parts 1-5020-0710-96 Ready Mix Concrete Ready Mix Concrete 1-5020-0710-98 Landscape Supplies Landscape Supplies 1-5020-0730-00 Maintenance $205,700 1-5020-0730-00 MAINTENANCE (E) Maintenance 1-5020-0730-66 Asphalt Paving Asphalt Paving 1-5020-0730-67 Concrete Repair Concrete Repair 1-5020-0730-72 Safety Equipment Repairs Safety Equipment Repairs 1-5020-0750-00 Non-Capital Equipment $9,500 1-5020-0750-15 Equipment Rental Equipment Rental 1-5020-0750-30 Tool & Equipment Tool & Equipment Registration 1-5020-0750-50 Safety Equipment Traffic Cones, Barricades, and Signs 1-5020-0810-00 Training $5,500 1-5020-0810-00 Training Training 1-5020-0810-40 Certificate Reimbursment Certificate Reimbursement Section Total 1-5020-0830-00 Travel & Conferences $1,000 1-5020-0830-10 Travel Travel 1-5020-0830-30 Meals Meals 1-5020-0830-40 Registration 179 Operation Budget Section Detail (FY 2013/14) Sewer Operation & Maintenance Section Category Total Sub Acct Total Detail Amt $500 500 500 $1,900 1,900 1,900 3,000 3,000 1,900 1,900 1,000 1,000 $300 300 300 1,000 1,000 15,000 15,000 60,000 60,000 8,000 8,000 30,000 30,000 5,000 5,000 10,000 10,000 700 700 8,000 8,000 1,000 1,000 2,200 2,200 300 300 200 200 100 100 300 300 $800 800 800 25,000 25,000 1,000 1,000 8,000 8,000 14,000 14,000 $199,200 Primary GL Category Sub Acct No./Sub Category Detail Item Description 2-5030-0580-00 Communications 2-5030-0580-00 COMMUNICATIONS (E) FOG Materials 2-5030-0600-00 Contractual Services 2-5030-0600-50 Uniforms Uniforms 2-5030-0645-00 Fees & Permits $5,900 2-5030-0645-20 FOG Inspection & Fees (OCSD) 2-5030-0645-30 WDR - SSO (SWRCB) WDR - SSO (SWRCB) 2-5030-0645-55 Encroachment Permits Encroachment Permits 2-5030-0640-00 Dues, Memberships, 2-5030-0640-00 Dues, Memberships, Subscriptions CWEA Memberships 2-5030-0710-00 Materials $16,000 2-5030-0710-60 Hardware Supplies Hardware Supplies 2-5030-0710-92 Sewer Main Repair Parts Sewer Main Repair Parts 2-5030-0730-00 Maintenance $113,700 2-5030-0730-59 Sewer Line Repairs Sewer Line Repairs 2-5030-0730-65 Vector Control In Manholes Vector Control in Manholes 2-5030-0730-66 Asphalt Paving Asphalt Paving 2-5030-0730-67 Concrete Repair Concrete Repair 2-5030-0730-71 CCTV Repairs CCTV Repairs 2-5030-0730-72 Safety Equipment Repairs Safety Equipment Repairs 2-5030-0750-00 Non-Capital Equipment $9,000 2-5030-0750-30 Tools & Equipment Tools & Equipment 2-5030-0750-50 Safety Equipment Traffic Cones, Barricades, and Signs 2-5030-0810-00 Training $2,500 2-5030-0810-00 Training 2-5030-0810-40 Certificate Reimbursement Certificate Reimbursement 2-5030-0830-00 Travel & Conferences $600 2-5030-0830-10 Travel Travel 2-5030-0830-30 Meals Meals 2-5030-0830-40 Registration Registration 2-5030-0870-00 Utilities 2-5030-0870-10 Electric 2-5030-0890-00 Vehicle Expenses $48,000 2-5030-0890-46 Vehicle Expense: Sewer Vehicle Maintenance OPS - Sewer Vehicle Maint 2-5030-0890-47 Vehicle Expense: Sewer Equipment Maintenance OPS - Sewer - Equipment Maintenance 2-5030-0890-48 Vehicle Expense: Sewer Gas OPS - Sewer - Gas 2-5030-0890-49 Vehicle Expense: Sewer Diesel OPS - Sewer - Diesel Section Total 180 Operation Budget Section Detail (FY 2013/14) Water Production Section Category Total Sub Acct Total Detail Amt 2,500 2,500 800 800 350 50 4,000 4,000 10,000 10,000 2,500 2,500 30,000 30,000 5,000 5,000 500 500 4,500 4,500 5,000 5,000 10,000 10,000 2,000 2,000 6,000 6,000 5,000 5,000 1,000 1,000 2,500 2,500 1,500 1,500 600 600 200 200 200 200 500 500 $95,200 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5040-0600-00 Contractual Services $3,300 1-5040-0600-25 Distribution System Disinfection Distribution System Disinfection 1-5040-0600-50 Uniforms Uniforms 1-5040-0640-00 Dues, Memberships, Subscriptions $400 1-5040-0640-00 Dues, Memberships & Subscriptions 400 AWWA Memberships OCWA Memberships 1-5040-0710-00 Materials $52,000 1-5040-0710-17 Pump Repair Parts Pump Parts 1-5040-0710-35 CL2 Parts CL2 Parts 1-5040-0710-60 Hardware Supplies Hardware Supplies 1-5040-0710-75 Salt Salt 1-5040-0710-84 Production Repair Parts Valves, Gauges, AV, etc. 1-5040-0710-85 Cleaning/Painting Supplies Cleaning/Painting Supplies 1-5040-0730-00 Maintenance $32,500 1-5040-0730-05 CL2 System Service CL2 System Service 1-5040-0730-10 Electrical Motor Repairs Electrical Motor Repairs/Services 1-5040-0730-20 Electrical General Maintenance Electric General Maintenance 1-5040-0730-24 Reservoir Repairs Reservoir Repairs 1-5040-0730-25 Reservoir Inspections & Cleaning Reservoir Inspections & Cleaning 1-5040-0730-75 Pump Station Repairs Pump Station Repairs 1-5040-0750-00 Non-Capital Equipment $3,500 1-5040-0750-30 Tools & Equipment Tools & Equipment 1-5040-0750-90 Emergency Equipment Supplies Hoses/Fittings/Cabling for Pumps/Generators 1,000 City Works User Conference Registration 1-5040-0810-00 Training $2,100 1-5040-0810-00 Training Training 1-5040-0810-40 Certificate Reimbursement Certificate Reimbursment Section Total 1-5040-0830-00 Travel & Conferences $1,400 1-5040-0830-10 Travel Travel 1-5040-0830-30 Meals Meals 1-5040-0830-40 Registration 181 Operation Budget Section Detail (FY 2013/14) Mechanical Services Section Category Total Sub Acct Total Detail Amt $1,500 1,500 1,500 8,000 8,000 350 350 100 100 1,500 1,500 2,500 2,500 1,500 1,500 500 500 5,000 5,000 $250 250 250 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5050-0600-00 Contractual Services 1-5050-0600-50 Uniforms Uniforms 1-5050-0645-00 Fees & Permits $9,950 1-5050-0645-05 AQMD Permits AQMD Permits 1-5050-0645-15 E.P.A.. Fees E.P.A. Fees 1-5050-0645-35 Haz Mat Fees (OCFA) HAZ Mat Fees (OCFA) 1-5050-0645-60 CARB Fees C.A.R.B Fee 1-5050-0710-00 Materials $4,500 1-5050-0710-60 Hardware Supplies Hardware Supplies 1-5050-0710-80 Mech. Shop Supplies Mech. Shop Supplies 1-5050-0710-81 Welding Supplies Welding Supplies 1-5050-0750-00 Non-Capital Equipment $10,000 1-5050-0750-40 Mech Shop Equipment 10,000 Misc Mech Shop Equipment/Tools Power Train Lift 1-5050-0810-00 Training 1-5050-0810-40 Certificate Reimbursment Certificate Reimbursment 182 Operation Budget Section Detail (FY 2012/13) Mechanical Services Section, Continued Category Total Sub Acct Total Detail Amt 500 500 750 750 13,200 13,200 4,000 4,000 9,300 9,300 3,000 3,000 50,000 50,000 5,000 5,000 63,000 63,000 24,000 24,000 3,000 3,000 500 500 13,000 13,000 2,000 2,000 3,800 3,800 1,000 1,000 1,900 1,900 1,000 1,000 1,000 1,000 2,700 2,700 105,000 105,000 9,000 9,000 2,500 2,500 $345,350 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5050-0890-00 Vehicle Expenses $319,150 1-5050-0890-10 Admin - Gas Admin - Gas 1-5050-0890-11 Admin - Vehicle Maint Admin - Vehicle Maint 1-5050-0890-20 Finance - Gas Finance - Gas 1-5050-0890-21 Finance - Vehicle Maint Finance - Vehicle Maint 1-5050-0890-30 Engineering - Gas Engineering - Gas 1-5050-0890-31 Engineering - Vehicle Maint Engineering - Vehicle Maint 1-5050-0890-42 OPS - Water - Vehicle Maint OPS Water Vehicle Maintenance 1-5050-0890-43 OPS - Water - Equipement Maint OPS - Water Equipment Maintenance 1-5050-0890-44 OPS - Water - Gas OPS - Water - Gas 1-5050-0890-45 OPS - Water - Diesel OPS - Water - Diesel 1-5050-0890-50 OPS - Production Vehicle Maint OPS - Production Vehicle Maint 1-5050-0890-51 OPS - Production Equipment Maint OPS - Production Equipment Maint 1-5050-0890-52 OPS - Production - Gas OPS - Production - Gas 1-5050-0890-53 OPS - Mech Svcs - Vehicle Maint OPS Mech Svcs - Vehicle Maint 1-5050-0890-54 OPS - Mech Svcs - Gas OPS - Mech Svcs - Gas 1-5050-0890-55 OPS - Facilities - Vehicle Maint OPS - Facilities - Vehicle Maint 1-5050-0890-56 OPS - Facilities - Gas OPS - Facilities - Gas 1-5050-0890-57 OPS - Tool Repair OPS - Tool Repair 1-5050-0890-70 IT - Vehicle Maint IT - Vehicle Maintenance 1-5050-0890-71 IT - Gas IT - Gas 1-5050-0890-80 Stationary Engine Maint Stationary Engine Maint 1-5050-0890-81 Stationary Engine Emissions Testing Stationary Engine Emissions Testing 1-5050-0890-90 Hazardous Materials Disposal Haz Mat Disposal Section Total 183 Operation Budget Section Detail (FY 2013/14) Facilities Maintenance Section Category Total Sub Acct Total Detail Amt 25,000 25,000 5,500 5,500 60,000 60,000 40,000 40,000 3,500 3,500 3,500 3,500 1,050 1,050 1,500 1,500 2,000 2,000 4,500 4,500 3,000 3,000 1,000 1,000 500 500 15,000 15,000 5,000 5,000 2,000 2,000 10,000 10,000 5,000 5,000 5,000 5,000 100 100 2,000 2,000 $90,000 90,000 90,000 $285,150 Primary GL Category Sub Acct No./Sub Category Detail Item Description 1-5060-0600-00 Contractual Services $137,500 1-5060-0600-05 AC & Heating AC & Heating 1-5060-0600-29 Disposal Service Disposal Service 1-5060-0600-35 Janitorial Service Janitorial Service 1-5060-0600-40 Landscape Service Landscape Service 1-5060-0600-45 Pest Control Service Pest Control Service 1-5060-0600-50 Uniforms Uniforms & Mats 1-5060-0645-00 Fees & Permits $2,550 1-5060-0645-00 FEES & PERMITS (E) Alarm Fees 1-5060-0645-35 Haz Mat Fees (OCFA) Haz Mat Fees (OCFA), Permits 1-5060-0710-00 Materials $11,000 1-5060-0710-00 Materials General Materials 1-5060-0710-10 Building Repair Parts Building Repair Parts 1-5060-0710-60 Hardware Supplies Hardware Supplies 1-5060-0710-85 Cleaning/Painting Supplies General Cleaning/Painting Supplies 1-5060-0710-98 Landscape Supplies Landscape Supplies 1-5060-0730-00 Maintenance $42,000 1-5060-0730-00 Maintenance Misc Facility Maint (Doors, fences, etc.) 1-5060-0730-20 Electrical General Maintenance Electrical Repair Work 1-5060-0730-35 Fire Extinguisher Maint/Calibration Fire Extinguisher Maint/Calibration 1-5060-0730-50 Painting & Fencing Painting 1-5060-0730-66 Asphalt Paving Asphalt Paving 1-5060-0730-67 Concrete Repair Concrete Repair 1-5060-0750-00 Non-Capital Equipment $2,100 1-5060-0750-00 Non-Capital Equipment General Tools/Parts 1-5060-0750-30 Tools & Equipment Tools & Equipment 1-5060-0870-00 Utilities 1-5060-0870-10 Electric Electric Section Total 184 Supplies & Services Summary by Department Section 185 Appendix 186 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) 187 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 188 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 189 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. 190 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 c ost 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). 191 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. 192 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. 193 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. 194 Financial Policies Introduction The District’s financial policy documents incorporate many of the District’s financial management practices that are used by the District staff as guidelines for operational and strategic decision-making related to current and future financial matters. The purpose of establishing these policies is to identify acceptable and unacceptable courses of action, thus establishing parameters in which the District’s fiscal performance can be reviewed. Some policies are flexible when they are utilized by District staff as performance measurement tools to monitor the District’s finances, while others are restrictive to emphasize accountability. The Operating Budget Policy and Revenues and Expenditures Policy are internal documents, acting as a guideline for staff, and are not reviewed by the Board. The Financial Reserves Policy and Investment Policy are reviewed by District staff and Board Members annually, to accommodate minor changes to the existing policy or major shifts in financial priorities as approved by the District’s Board of Directors. The District’s financial policies encompass the following functional areas:  Operating Budget Policy  Revenues and Expenditures Policy  Financial Reserves Policy  Investment Policy 195 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:  The budget should support the District’s mission statement, strategic goals, and critical priorities  There should be no deferment of critical maintenance  The budget should be regarded as a business operating plan  The budget should balance the needs to pay for the District’s cost of providing services, debt service obligation and capital needs of the District  Expenses should be budgeted for in appropriate departments to correctly identify the cost of providing various District functions and services Budget Form The District operating and capital budget is developed on an annual basis. Operating and capital appropriations are approved by the District’s Board of Director’s. Proposed revenues and expenditures including debt service expenditures are presented to the Board of Directors along with comparisons to projected 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. 196 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 ar e 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. 197 Revenues and Expenditures Policies This policy is used as an aid to provide for the consistent provision of essential public services since revenues and expenditures are the key drivers of the District’s operations. The goal of this policy is to help ensure the financial stability regardless of the economic situation and to provide information to the Board that revenue and expenditure practices are consistent with the District’s mission and goals. Revenues Policy Budgeted revenues are estimated conservatively using an objective and analytical approach using certain techniques such as historical trends and current information to maintain consistency, reliability, and reasonableness. User Charges User charges are the most important component of t he District’s revenue portfolio. The District uses user charges to fund the provision of services provided to its customers. The District utilizes a cost recovery component to determine how much costs need be recovered from various customers. The cost of providing various services is used as the basis for setting rates and fees to the various types of customers served. The following are guidelines for the user charge setting process:  User charges are established utilizing a generally accepted cost reco very methodology that is consistent and legally defendable using the following approaches: revenue requirement analysis, cost of service analysis, and rate design analysis.  Rate designs shall be reflective of the District’s Board of Directors’ rate settin g objectives.  Rates shall be set at a level so that the District will collect reliable revenues through a combination of system access charges and users’ commodity rates to pay for the District’s revenue requirement.  Rates and charges will be reviewed and updated regularly based on factors such as the impact of inflation, other cost increases, the adequacy of the coverage of costs and requirements of the rate covenant. Expenditures Policy The District’s expenditures reflect the Board of Directors’ and staff commitment to serve present and future customers with reliable public services. The Board and Staff believe that prudent expenditure planning and accountability will ensure fiscal stability. 198 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:  Maintain consistency of allocation of resources for programs to carry out the District’s mission and goals to its customers  Within the resources available each fiscal year, the District shall maintain 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:  Utilize technology and productivity advancements that will help red uce or avoid increasing personnel costs, when practicable.  Control personnel costs as a proportion of total budget, to more productively and creatively use available resources. 199 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. 200 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 experie nced 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. 201 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 a ppropriate 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. 202 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 operati ng 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 es tablished 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 th e fiscal agent to pay any outstanding debt service payments not covered by the District within the specified billing and due dates. 203 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. 204 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 effici ency 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. 205 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.” 206 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 f or investment, considering the probable safety of their capital as well as the probable income to be derived. SECTION 6.0: ETHICS AND CONFLICTS OF INTEREST 6.1 Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District’s General Manager any material financial interests in financial institutions that conduct business with the District’s boundaries, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District. SECTION 7: AUTHORIZED BROKER/DEALERS 7.1 The Treasurer will maintain a list of authorized broker/dealers and financial institutions that are approved for investment purposes. Broker/dealers will be selected for credit worthiness and must be authorized to provide investment services in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15(C)3-1 (uniform net capital rule). No public deposit will be made by the broker/dealer except in a qualified public depository as established by the established state laws. Before a financial institution or broker/dealer is used, they are subject to investigation and approval by the Treasurer or his/her designated representative, and must submit the following: 7.1.1 Certification of having read and understood this investment policy resolution and agreeing to comply with the District’s investment policy; 7.1.2 Proof of Federal Investment Regulatory Authority certification; 7.1.3 Proof of State of California registration; 207 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 Agen cy 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. 8.3 Within the context of these limitations, the following investments are authorized: 208 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 209 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 m arket 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. 210 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 an d 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. 211 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 perfo rmance of the District’s investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District’s Safety, Liquidity and Return on Investments objectives. This review will be conducted annually with the Finance-Accounting Committee. SECTION 16: REPORTING 16.1 Subject to CGC sections 53607 and 53646(b), the Treasurer will provide monthly investment reports to the District’s Finance-Accounting Committee (and through the Committee’s minutes, to the Board of Directors) and quarterly reports to the Board of Directors which provide a clear picture of the status of the current investment portfolio. The reports shall comply with the reporting requirements of CGC sections 53607 and 53646(b), respectively. SECTION 17: INVESTMENT POLICY ADOPTION 17.1 The District’s Investment Policy will be adopted by resolution of the Board of Directors. The policy will be reviewed on an annual basis and modification, if any, must be approved by the Board of Directors. ITEM NO. 8.5 AGENDA REPORT Meeting Date: July 11, 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:Sewer Charges Collected on the Tax Roll for Fiscal Year 2013/14 SUMMARY: Each year at this time, the Board of Directors elects to collect certain sewer maintenance charges on the property tax rolls. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 13-12 Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2013/14 Tax Roll and Superseding Resolution No. 12- 16. DISCUSSION: The District collects the Sewer Maintenance Charge by adding it to the water bill of customers where the District provides water service and the customer also has a connection to the sewer system. For customers connected to the District sewer system that receive water service from another purveyor or those customers that do not receive a water bill from the District, the Sewer Maintenance Charge is collected through the property tax rolls prepared by the County of Orange Auditor/Controller. This process is legally authorized and established by Resolution of the Board. Residents of the Locke Ranch area do not receive water from the District, so their sewer charges are collected on the tax roll. In addition, due to the disparity in rates between the City of Yorba Linda and the District's Sewer Maintenance Charges, it has been determined that those classifications with rate differences need to be placed on the tax roll for collection until a Proposition 218 process can be completed to equalize the rates. The Sewer Maintenance Charges are subject to the substantive and procedural requirements of Proposition 218 (California Constitution Article XIII D) barring an increase in the rates and/or a discretionary CPI increase of more than 5%, except with proper notification to the property owners affected allowing adequate opportunity to protest any such increases. Staff is not recommending a change to the current sewer maintenance charge at this time. To collect the current maintenance charges on the tax rolls for Fiscal Year 2013/14, the County of Orange Auditor/Controller's Office requires a certified Resolution by the Board of Directors directing their office to add the charges to the tax rolls for the properties assessed. The County establishes a deadline in August to receive this information. PRIOR RELEVANT BOARD ACTION(S): On July 26, 2012 the Board of Directors passed Resolution No. 12-16 electing to have the sewer maintenance charges collected on the Fiscal Year 2012/13 tax roll. ATTACHMENTS: Name:Description:Type: Resolution_No._13-12.docx Resolution Backup Material Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 PH/RK 5-0 Roll Call Resolution No. 13-12 Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2013/14 Tax Roll 1 RESOLUTION NO. 13-12 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ELECTING TO HAVE CERTAIN SEWER MAINTENANCE CHARGES COLLECTED ON THE FISCAL YEAR 2013/14 TAX ROLL AND SUPERCEDING RESOLUTION NO. 12-16 WHEREAS, Resolution No. 11-17 set out sewer rates for the Yorba Linda Water District (“District”) and via Resolution 07-13 these rates are in compliance with substantive and procedural requirements of Proposition 218 (California Constitution Art. XIII D); and WHEREAS, under the authority of the California Water Code Sections 31100 the District may provide sewer service to property located outside the District boundaries and the District’s Regulations for Rendition of Sanitary Sewer Service include a provision that a sewer maintenance charge is adopted by Resolution; and WHEREAS, under authority of California Water Code Sections 31101 and 31102 the District may prescribe and collect charges for sewer services and facilities and may collect sewer charges in any lawful manner; and WHEREAS, under California Health and Safety Code Sections 5471 and 5473 the District may elect to have the County of Orange Auditor/Controller collect sewer charges on the Orange County Property Tax Roll. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District to adopt Sewer Maintenance Charge as follows: Section 1. The Board of Directors elects to have the County of Orange Auditor/Controller collect the charges fixed herein on the tax roll in the same manner, by the same persons, and at the same time and together with and not separately from County of Orange taxes. Section 2. The General Manager or his designee is authorized and directed to file with the County of Orange Auditor/Controller a copy of this Resolution together with the listing of parcel numbers and amounts of charges shown in Exhibit “A” and such other documentation as the County Auditor/Controller may require in order to accomplish the purposes of this Resolution. Section 3. Resolution No. 12-16 is superseded effective immediately by the adoption of this Resolution. Resolution No. 13-12 Electing to Have Certain Sewer Maintenance Charges Collected on the FY 2013/14 Tax Roll 2 PASSED AND ADOPTED this 11th day of July 2013 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Gary 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 ITEM NO. 8.6 AGENDA REPORT Meeting Date: July 11, 2013 Budgeted:Yes Total Budget:$175,297 To:Board of Directors Cost Estimate:$175,297 Funding Source:Operating Funds From:Steve Conklin, Acting General Manager Account No:1-2010-0550-00 Presented By:Stephen Parker, Finance Manager Dept:Finance Prepared By:Stephen Parker, Finance Manager Subject:OPEB Deposit with CERBT STAFF RECOMMENDATION: That the Board of Directors authorize staff to deposit $175,297 (the District's Annual Required Contribution) to the California Employees' Retirement Benefit Trust (CERBT) for FY 2013/14. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this item at its meeting held June 28, 2013 and supports staff recommendation. DISCUSSION: The District's budgeted Annual Required Contribution (ARC) for Other Post-Employment Benefits (OPEB) for FY 13/14 is $175,297. The actuarially projected OPEB pay-as-you-go expenses for FY 13/14 are $137,512. For FY 13/14, staff proposes that the District pre-fund the California Employees Retirement Benefit Trust (CERBT) with the entire ARC. By pre-funding the CERBT, the District can submit for reimbursement for actual retiree costs for the periods of July 2013 through June 2014 at the end of FY 2013/14, but take advantage of the CERBT's superior investment rate of return in the meantime. Through March 31, 2013, the CERBT rate of return was on pace for an annualized 7.9%, while the District's portfolio was earning less than 1%. PRIOR RELEVANT BOARD ACTION(S): On July 12, 2012, the Board authorized staff to deposit $275,197 to the California Employees Retirement Benefit Trust for FY 12/13, to pay down a portion of the District's Other Post Employment Benefits liability. Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 MB/RC 5-0 ITEM NO. 8.7 AGENDA REPORT Meeting Date: July 11, 2013 Budgeted:Yes Total Budget:$6.0 M To:Board of Directors Cost Estimate:$550,000 Funding Source:All Water Funds From:Steve Conklin, Acting General Manager Account No:101-2700 Job No:J2010-11B Presented By:Steve Conklin, Acting General Manager Dept:Engineering Reviewed by Legal:Yes Prepared By:Hank Samaripa, Project Engineer CEQA Compliance:MND Subject:Engineering Services for the Fairmont Booster Station Upgrade Project SUMMARY: Staff issued a Request for Proposal (RFP) to eleven consultants for engineering, planning, design, and construction services for the Fairmont Booster Station Upgrade Project (FBSU). Based on technical merit of the proposal, job experience of the project manager and lead team members, and evaluation score, staff recommends award to MWH Americas, Inc. (MWH) for $549,584. STAFF RECOMMENDATION: That the Board of Directors authorize execution of a Professional Services Agreement with MWH Americas, Inc., in the amount of $549,584, for engineering, planning, design, and construction phase services for the Fairmont Booster Station Upgrade Project, Job No. 2010-11B. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee will consider this item at its meeting on July 8, 2013. The Committee will discuss its recommendation at the Board meeting. DISCUSSION: The FBSU Project consists of: 1.Construction of a new 9,000 gallon per minute booster pump station. 2.Construction of 800 feet of 24-inch diameter transmission waterline in Fairmont Blvd. 3.Demolition of the existing Fairmont Pump Station at completion of the above. The objective of the Project is to provide a more reliable and lower cost ground water supply to the upper zones in the North and East service areas. The FBSU Project was identified and approved in the 2013-2014 Budget and Capital Improvement Plan and subsequent years. On March 2013, the Northeast Area Planning Study (NEAPS) was completed to determine the minimum requirements for providing ground water to the upper zones and for future development. Based on the NEAPS, it was determined feasible to move ground water to those upper zones through the Fairmont pump station with site upgrades and transmission line replacements. Staff solicited proposals from eleven consulting firms experienced in this field. Eight proposals were received on June 12, 2013 with three declining. The District's Engineering Review Team evaluated, ranked, and scored the eight proposals. The ranking was based on technical merit, which included evaluation of content of the proposal, understanding and approach of the project, and related experience of the firm's project manager and lead team members, with results as follows: The firm with the highest technical score was MWH Americas, Inc. After the proposals were ranked by the Review Team, the separate fee envelopes from each proposer were opened. The proposed fee by MWH was reviewed and found to be reasonable and appropriate. Therefore, staff recommends award to MWH based on technical merit and the quality of its project team. Firm Ranking Score Fee Staff Hours MWH 277.48$549,584 3,520 Kennedy/Jenks 275.42$564,879 3,546 Lee & Ro272.29$583,681 3,664 Tetra Tech269.94$770,000 3,851 Brady265.27$493,194 3,660 Carollo264.65$549,200 4,478 URS264.40$526,319 3,985 Psomas258.25$526,400 3,767 STRATEGIC PLAN: SR 3-A: Complete Implementation of Five Year Capital Improvement Plan from FY 2011-2015 with adopted amendments PRIOR RELEVANT BOARD ACTION(S): On July 12, 2012 Board of Directors authorized execution of a Professional Services Agreement with Carollo Engineers, Inc. in the amount of $102,883 to provide professional services to update, calibrate, and analyze the District's water system hydraulic model and to prepare a Northeast Area Planning Study (NEAPS). On March 14, 2013 the Board of Directors received and filed the NEAPS which summarized and recommended the operating conditions of the future FBSU. Approved by the Board of Directors of the Yorba Linda Water District 7/11/2013 RK/PH 5-0 ITEM NO. 10.1 AGENDA REPORT Meeting Date: July 11, 2013 Subject:Executive-Administrative-Organizational Committee (Melton/Kiley) · Minutes of meeting held June 25, 2013 at 12:00 p.m. · Meeting scheduled July 16, 2013 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 062513_EAO_-_Minutes.docx EAO Mtg Minutes 06/25/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT EXECUTIVE-ADMINISTRATIVE-ORGANIZATIONAL COMMITTEE MEETING Tuesday, June 25, 2013 12:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 25, 2013 meeting of the Yorba Linda Water District’s Executive- Administrative-Organizational Committee was called to order by Director Melton at 12:00 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 Eddy Beltran, Senior Counsel, Kidman Law LLP Christopher Townsend, President, Townsend Public Affairs, Inc. (Via Teleconference) Heather Stratman, Senior Director, Townsend Public Affairs, Inc. (Via Teleconference) 3. PUBLIC COMMENTS None. 5. DISCUSSION ITEMS 5.1. Status of Legislative Affairs (Verbal Report) This item was taken out of order to accommodate the participation of staff from Townsend Public Affairs via teleconference. Mr. Townsend and Mrs. Stratman and the Committee discussed various state and local legislative issues relating to the District. Following completion of the discussion, Mr. Townsend and Mrs. Stratman disconnected from the meeting. 4. ACTION CALENDAR 4.1. ACWA Election of Board President and Vice-President for 2014-2015 Term Mr. Conklin reported that the ACWA Nominating Committee is seeking recommendations from member agencies for nominations for ACWA President and Vice-President for the 2014-15 term. The Committee asked staff to take this item to the Board to determine if any Directors wished to seek these offices. 2 4.2. CSDA Region 6 Election of Officers and Board Members for 2013-2017 Term Mr. Conklin reported that CSDA’s Region 6, Seat B position for Orange and San Diego counties, is up for election, for which the District is entitled to cast one vote. Following discussion, the Committee recommended that the Board consider making Mr. Bill Nelson its choice for the position, and authorizing the President to cast that vote. 5. DISCUSSION ITEMS CONTINUED 5.2. Status of OCWD Annexation Project (Verbal Report) Mr. Conklin reported that the response to comments on the draft EIR for annexation is being completed and that it is still on schedule to come to the OCWD Board in August for consideration of certification. On a separate track, he noted that discussions continue among the Groundwater Producers (GWPs) concerning the existing annexation policy and the potential impact of the annexation on the other GWPs. Mr. Conklin indicated that at the June 12, 2013 OCWD Water Issues Committee meeting, OCWD Board members asked that the GWPs work to see if they can reach some compromise points on the annexation impacts issue before the matter comes to the OCWD Board for consideration (which may be delayed beyond August). He reported on the most recent GWP meeting held June 24, 2013, and stated that each agency was asked to provide goals or conditions that relate to “cost neutrality.” Mr. Conklin provided his thoughts on this, and said that he would summarize the same in a memo for the Committee to review before sending it off for the next GWP Annexation meeting scheduled July 15, 2013. 5.3. MWDOC Desalination Program Study Participation (Verbal Report) Mr. Conklin reported that at the May 28, 2013 MWDOC/OCWD/YLWD Joint Committee meeting, there was discussion on the potential Poseidon Huntington Beach Seawater Desalination Project. It was noted that YLWD has not been involved in the status meetings on this project at MWDOC, and may want to take a more active role. Following discussion, the Committee asked that this matter be brought to the Board for discussion as to possible formal participation on the workgroup in FY 2013/14. 5.4. Status of Sage and Esperanza Hills Development Projects (Verbal Report) Mr. Conklin reported that there is little new information to report, other than that LAFCO staff contacted him and indicated that they are working to schedule a meeting that includes the City of YL, County, YLWD, and the developers. LAFCO indicated that staff of Sage Development is still expressing an unwillingness to meet. 3 5.5. Status of Plumosa Property Sale (Verbal Report) Mr. Conklin reported that he has a meeting scheduled on June 26, 2013 with staff of the City of YL and that of National Core, to discuss the level of interest of National Core to purchase the property for development of low- cost housing. He also noted that District staff has collected information from four real estate brokers that work in the area. The information was reviewed with the Committee with no action at this time. 5.6. Status of Operations and Efficiency Study (Verbal Report) Mr. Conklin reported that the Position Description Questionnaire (PDQ) is being completed by all District staff (with some completed as a group). Most PDQs have been completed and will be mailed June 27, 2013 to Koff & Associates (K&A). The last of the PDQs will be completed by July 1, 2013 and emailed to K&A that day. 5.7. Revision of District Policies Related to the Acceptance of Gifts (Verbal Report) Copies of the current District policies regarding the above (Resolution 10- 05: Rules & Procedures Relative to the Conduct of Board Members and District Employees; and Section 6.08 of the YLWD Personnel Rules) were provided to the Committee. Following discussion, the Committee asked staff to further review the documents and return with recommendations. 5.8. Status of Strategic Plan Initiatives The status of the above was reviewed with the Committee with no comments. 5.9. Future Agenda Items and Staff Tasks The Committee asked staff to check on the availability of Kelly Hubbard of MWDOC to make a presentation to the CAC on Emergency Preparedness Programs in Orange County. Mr. Conklin reported to the Committee on the status of the repair work on Alder Avenue and at the Placentia Linda Hospital. Mr. Conklin indicated that as a follow-up to the District facilities tour on June 20,, 2013, staff will research the cost, benefit, and viability of fire retardants on District facilities located in fire-hazard areas. The Committee adjourned to Closed Session at 1:50 p.m. Directors Melton and Kiley were present. Also present were Messrs. Conklin, Kidman and Beltran. 6. CLOSED SESSION 6.1. Conference with Legal Counsel – Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code 4 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 6.3. 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 6.4. 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 communication from potential plaintiff threatening litigation. Number of Potential Cases: One The Committee reconvened in Open Session at 2:05 p.m. Director Melton announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 7. ADJOURNMENT 7.1. The meeting was adjourned at 2:05 p.m. The next Executive- Administrative- Organizational Committee meeting is scheduled to be held Tuesday, July 16, 2013 at 4:00 p.m. ITEM NO. 10.2 AGENDA REPORT Meeting Date: July 11, 2013 Subject:Finance-Accounting Committee (Hawkins/Melton) · Minutes of meeting held June 28, 2013 at 8:00 a.m. · Meeting scheduled July 22, 2013 at 12:00 p.m. ATTACHMENTS: Name:Description:Type: 062813_FA_-_Minutes.doc FA Mtg Minutes 06/28/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING Friday, June 28, 2013 8:00 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 28, 2013 meeting of the Yorba Linda Water District’s Finance- Accounting Committee was called to order by Director Hawkins at 8:00 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 Steve Conklin, Acting General Manager 3. PUBLIC COMMENTS None. 4. ACTION CALENDAR 4.1. Sewer Charges Collected on the Tax Roll for Fiscal Year 2013/14 Mr. Parker explained that annually the Board adopts a resolution to have sewer maintenance charges placed on the tax rolls and that the resolution is required by the County of Orange Auditor/Controller. The Committee asked what areas were put on the tax rolls, and Mr. Parker explained that it was Locke Ranch as well as multi-family and commercial customers that were previously billed by the City of Yorba Linda. The Committee supported staff recommendation, and asked as a future task that staff look into potential timing of a Prop 218 process to put the former City of Yorba Linda multi-family and commercial customers on the same rate as the other District customers. 4.2. OPEB Deposit with CERBT Mr. Parker presented a proposed action item that would have the District deposit the actuarially determined Annual Required Contribution (ARC) for Other Post-Employment Benefits (OPEB) into the California Employees Retirement Benefit Trust (CERBT). Mr. Parker explained that this would mean sending more money than necessary over to CERBT, pay the retiree pay-go costs throughout the year, and then pull back the retiree pay-go costs in June 2014. The effect would be ensuring that the entire ARC was paid, but depositing $175,297 in the CERBT fund throughout the year to try to obtain a better investment rate of return. The Committee asked some clarifying questions and supported staff recommendation. 2 5. DISCUSSION ITEMS 5.1. Investment Report for Period Ending May 31, 2013 Mr. Parker presented the investment report for May 2013. Mr. Parker explained that with the District purchasing individual assets rather than investing in pools, higher yields were available. Staff has only purchased Federal Agency Securities and Negotiable Certificates of Deposit in amounts under the $250,000 federally insured limit. Therefore, if they are held to maturity, there is no risk of loss with those investments. In the process of making investment selections themselves, the District’s yield increased, so that despite LAIF and other pools decreasing, the District’s portfolio yield increased by 10 basis points in May, to 0.75%. Mr. Parker asked the Committee about their thoughts on investing in Corporate Securities, which are approved in the investment policy, but carry a risk to principle if the corporations go out of business. The Committee requested as a future task that staff provide a pro and con list to investing in Corporate Securities. 5.2. Budget to Actual Results for May 2013 Mr. Parker presented the May Budget to Actual results and pointed out that the District is trending a little over budget in supplies and services, and under in personnel expenses while trending over budget in revenues, and slightly under budget in variable water cost. The Committee requested that future reports include a column showing the budget on a year-to-date basis to make comparisons to actual numbers easier. Mr. Parker indicated that would be done. 5.3. Short-Term Financing Rate (Verbal Report) Mr. Parker explained that with the recent increase in the US Treasury rates, investment returns were going up, but so were borrowing costs. Therefore, specific options that were being explored by the District were now at a higher rate than when this information was originally provided last month. The Committee asked that staff continue to monitor borrowing costs, and anticipated that a decision would not be made until further information was available about being annexed into Orange County Water District. 5.4. Preparation of 1 Year vs. 2 Year Budget (Verbal Report) Staff and the Committee discussed some pros and cons about a 2 year budget. One of the cons mentioned was the difficulty of having accurate numbers for the second year of the budget. The Committee asked the last time the District conducted a 2-year budget. Mr. Parker said the 2007-09 Budget was the last 2-year budget the District prepared. The Committee asked as a future staff task that staff look back at the 2007-09 Budget and bring back to the Committee the information contained in the second year of that budget as compared with actual numbers from the 2008-09 fiscal year’s financial statements. 3 5.5. Future Agenda Items and Staff Tasks • Provide options for potential timing of a sewer Prop 218 process that would allow the District to make uniform the rates for all its multi-family and commercial customers. • Provide a list of pros and cons for making investments in Corporate Securities. • Add a column on the budget to actual report that shows budget on a year-to-date basis. • Provide a comparison between the actual numbers in the 2008-09 financial statements and the second year of the 2007-09 Budget. 6. ADJOURNMENT 6.1. The meeting was adjourned at 9:03 a.m. The next Finance-Accounting Committee meeting is scheduled to be held Monday, July 22, 2013 at 12:00 p.m. ITEM NO. 10.8 AGENDA REPORT Meeting Date: July 11, 2013 Subject:YLWD-City of Yorba Linda Joint Agency Committee (Kiley/Beverage) · Minutes of meeting held June 19, 2013 at 6:00 p.m. · Meeting scheduled August 21, 2013 at 6:00 p.m. ATTACHMENTS: Name:Description:Type: 061913_City_of_YL_-_Minutes.docx YLWD/YL Mtg Minutes 06/19/13 Minutes 1 MINUTES OF THE YORBA LINDA WATER DISTRICT JOINT COMMITTEE MEETING WITH CITY OF YORBA LINDA Wednesday, June 19, 2013 6:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The June 19, 2013 meeting of the YLWD/City of Yorba Linda Joint Agency Committee was called to order at 6:10 p.m. The meeting was held in the District’s Training Room located at 1717 E Miraloma Avenue, Placentia CA 92870. 3. ROLL CALL YLWD COMMITTEE MEMBERS YLWD STAFF Robert R. Kiley, Vice President Steve Conklin, Acting General Manager Michael J. Beverage, Director Damon Micalizzi, Public Information Officer Annie Alexander, Executive Secretary Cody Peterson, Public Affairs Intern CITY OF YORBA LINDA MEMBERS CITY OF YORBA LINDA STAFF John Anderson, Councilmember Steve Rudometkin, City Manager Gene Hernandez, Councilmember Mark Stowell, Public Works Director Steve Harris, Community Dev Director OTHERS Brett Barbre, Director, Metropolitan Water District/Municipal Water District of Orange Co Laura Blaul, Assistant Fire Chief/Fire Marshal, Orange County Fire Authority Pete Bonano, Deputy Fire Marshal, Orange County Fire Authority Kris Concepcion, Battalion Chief, Orange County Fire Authority Kevin Canning, Public Works/Planning, County of Orange Daniel Mole Mark Schock 4. PUBLIC COMMENTS None. 5. ACTION CALENDAR 5.1. Minutes of the YLWD/City of Yorba Linda Joint Agency Committee Meeting held April 17, 2013 No comments were provided regarding the minutes from the previous meeting. 2. PLEDGE OF ALLEGIANCE Mr. Conklin led the audience in the pledge of allegiance. 2 6. DISCUSSION ITEMS 6.1. Landscape Maintenance Assessment Districts (LMAD) Status of Citizens Advisory Committee Mr. Rudometkin introduced Messrs. Stowell and Harris and invited Mr. Stowell to comment on the status of the organization of a Citizens Advisory Committee for the LMADs. Mr. Stowell reported that the 9- member committee held its first meeting the previous Thursday during which a Chair and Vice Chair were selected. The group intends to conduct 2 committee meetings and 3 community meetings each month. A bus tour of the LMADs has been scheduled for June 25, 2013 and the next LMAD Committee meeting has been tentatively scheduled for July 11, 2013. The YLWD/City of YL Committee members then discussed the number of planned LMAD Committee meetings and the possibility of having a member of YLWD’s Board serve as a liaison to the LMAD Committee. MWDOC Water Use Efficiency Programs Mr. Conklin stated that he and Mr. Stowell had recently met with a MWDOC representative to discuss opportunities for City participation in MWDOC’s water use efficiency programs. Mr. Stowell stated that City staff had determined it would be best to postpone their agency’s participation at this time. 6.2. Cielo Vista / Esperanza Hills Developments Status of LAFCO Coordination Meeting Mr. Rudometkin stated that this matter had been discussed at the City Council meeting held the previous evening during which the Council directed City staff to pursue participation in a stakeholder’s meeting being coordinated by LAFCO. Councilmembers Hernandez and Anderson both commented on the developers’ decisions to seek approval of their projects through LAFCO instead of the City, the filing of a lawsuit between the two developers, and the disposition of 2 other undeveloped properties nearby that could complicate the matter even further. Mr. Harris then provided a more detailed summary of the Council’s discussion of this issue and the status of City staff’s interactions with the two developers and LAFCO. Discussion with OCFA Ms. Blaul provided the Committee with a PowerPoint presentation regarding OCFA’s role in the development process including the application of fire-safety project conditions, the review and approval of technical plans, and the performance of inspections. A lengthy discussion took place during the presentation related to the adoption and application of fire code requirements. In conclusion, Ms. Blaul 3 provided a brief overview of OCFA’s “Ready, Set, Go!” wildfire preparation program. The Committee also discussed preparations for a community information meeting to be held in October prior to the 5- year anniversary of the Freeway Complex Fire. Information related to the implementation of organization/system enhancements will be presented by each agency (City of YL, YLWD and OCFA). 6.3. Sale or Lease of 4622 Plumosa Drive Property Mr. Conklin stated that he is scheduled to meet June 26, 2013 with representatives from the City and National CORE in regards to the sale of this property. District staff is also planning to contact multiple real estate brokers shortly. 6.4. Joint Use of Water District Facilities for Recreational Purposes The Committee discussed the possibility of using District facilities for community recreational activities. District staff will perform an assessment of YLWD facility locations that could potentially be used for this purpose. 6.5. Project Coordination The Committee briefly discussed major construction projects being performed by both agencies in the community. 6.6. Establishment of Future Meeting Dates The next meeting was scheduled for Wednesday, August 21, 2013 at 6:00 p.m. and will be held at Yorba Linda City Hall. 6.7. Potential Future Agenda Items Director Barbre noted that MWDOC was planning to conduct a community open house at the Diemer Treatement Plant in Yorba Linda once construction was complete. Director Kiley suggested that the presentation regarding the construction being performed at this facility which was provided at the last WACO meeting also be provided to the YLWD Citizens Advisory Committee. 7. ADJOURNMENT 7.1. The meeting was adjourned at 8:32 p.m. The next YLWD/City of Yorba Linda Joint Agency Committee meeting will be held 6:00 pm, Wednesday, August 21, 2013, at Yorba Linda City Hall. ITEM NO. 12.1 AGENDA REPORT Meeting Date: July 11, 2013 Subject:Meetings from July 12, 2013 - August 31, 2013 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Event Date Attendance by: July 2013 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 Citizens Advisory Committee MeetingMon, Jul 22Beverage Finance-Accounting Committee MeetingMon, Jul 22Hawkins/Melton Joint Committee Meeting with MWDOC and OCWDTue, Jul 23Beverage/Melton MWDOC Water Policy Forum & DinnerWed, Jul 24 OCWD BoardWed, Jul 24Staff Yorba Linda Planning CommissionWed, Jul 24Hawkins Board of Directors Regular MeetingThu, Jul 25 August 2013 Planning-Engineering-Operations Committee MeetingThu, Aug 1Kiley/Hawkins WACOFri, Aug 2Hawkins/Kiley Pub Affairs-Communications-Tech Committee MeetingMon, Aug 5Beverage/Collett Yorba Linda City CouncilTue, Aug 6Kiley MWDOC/MWD WorkshopWed, Aug 7Melton OCWD BoardWed, Aug 7Kiley Board of Directors Regular MeetingThu, Aug 8 Personnel-Risk Management Committee MeetingTue, Aug 13Collett/Beverage UWI Annual ConferenceWed, Aug 14Kiley LAFCOWed, Aug 14Beverage Yorba Linda Planning CommissionWed, Aug 14Melton UWI Annual ConferenceThu, Aug 15Kiley UWI Annual ConferenceFri, Aug 16Kiley Exec-Admin-Organizational Committee MeetingTue, Aug 20Melton/Kiley Yorba Linda City CouncilTue, Aug 20Collett MWDOC BoardWed, Aug 21Melton OCWD BoardWed, Aug 21Kiley Joint Committee Meeting with City of Yorba LindaWed, Aug 21Kiley/Beverage Board of Directors Regular MeetingThu, Aug 22 Citizens Advisory Committee MeetingMon, Aug 26Beverage Finance-Accounting Committee MeetingMon, Aug 26Hawkins/Melton Yorba Linda Planning CommissionWed, Aug 28Hawkins ISDOCThu, Aug 29Collett 6:00PM 8:30AM 8:30AM 12:00PM 6:30PM 11:30AM 8:00AM 8:00AM 4:00PM 6:30PM 8:30AM 5:30PM 5:30PM 8:30AM 4:00PM 8:00AM 8:30AM 6:30PM 3:00PM 7:30AM 4:00PM 6:30PM 8:30AM 4:00PM 5:30PM 5:30PM 6:30PM 8:30AM 4:00PM 6:30PM 8:30AM 3:00PM 8:30AM 12:00PM Board of Directors Activity Calendar Time 7:30AM 7/2/2013 5:45:40 PM ITEM NO. 13.1 AGENDA REPORT Meeting Date: July 11, 2013 Subject:MWDOC Water Policy Forum & Dinner - July 24, 2013 CSDA Annual Conference - September 16-19, 2013 STAFF RECOMMENDATION: That the Board of Directors authorize Director attendance at these events if desired. 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I will definitely come back next year! – liz buDa, isla visTa recreaTion anD parK DisTricT Pre-conevents PRE-CoNfERENCE HigHligHTSMoNDAy, SEPTEMbER 16, 2013 9:00 – 11:00 a.m. SPECIAL DIStRICt ADMInIStRAtOR (SDA) ExAM the Special District Leadership Foundation (optional – must be scheduled prior to conference) 9:00 a.m. – 4:00 p.m. PRE-COnFEREnCE FuLL DAy wORKSHOP: SPECIAL DIStRICt LEADERSHIP ACADEMy MODuLE 1: GOVERnAnCE FOunDAtIOnS - earn SDrMA CiPs (pre-registration/payment required) As the core curriculum of CSDA’s Special District leadership Academy, this workshop serves as the “foundation” for the series on effective governance of special districts. $225 Member $375 Non-member 1:00– 4:30 p.m. PRE-COnFEREnCE HALF DAy wORKSHOP: COMPREHEnSIVE ORGAnIzAtIOnAL ASSESSMEnt FOR SPECIAL DIStRICtS (pre-registration/payment required) the unique organizational structure of public agencies can present a wide variety of challenges. brent ives, noted organizational consultant to California special districts, will present this workshop on how to assess your district. the half-day class focuses on six key areas of the organization, how to assess each and what to do to strengthen or mitigate if issues are indicated. Don’t miss this valuable course in how to optimize your District’s organizational health. $150 Member $200 Non-member 11:00 a.m.– 5:00 p.m. CSDA AnnuAL GOLF tOuRnAMEnt Blackhorse Golf Course (optional – must register prior to conference) $125 includes golf with cart, lunch and prizes! 12:45 – 4:30 p.m. MOntEREy REGIOnAL wAStE MAnAGEMEnt DIStRICt (MRwMD) tOuR MRwMD has been recognized as one of the “Best Solid waste Systems in north America.” for 60 years, MrwMD has been a leader in the waste management industry with infrastructure, technology and programs in place to maximize waste diversion (reuse and recycling) for the Monterey Peninsula jurisdictions. the tour will show you a model of a successful integrated waste management system. During the tour you will visit an active landfill and get a close up look at some of the MrwMD resource recovery facilities and programs including: • A state of the art, Smartferm Anaerobic Digestor (first of its type in the uS.) • A 100,000 sq.ft. Materials recovery Program • A landfill gas to energy Plant that produces five megawatts of energy • A compost operation that composts over 20,000 tons of green waste annually • one of the largest reuse stores in the region, the last Chance Mercantile $25 per person includes transportation to/from hotel Only registered CSDA conference attendees or registered guests are eligible to attend. Register early, space is limited. regiSter online At ConferenCe.CSDA.net. | #CSDAConf2013 7 11:45 a.m. – 3:45 p.m. ELKHORn SLOuGH SAFARI ™ AnD MOSS L AnDInG HARBOR DIStRICt tOuR elkhorn Slough Safari ™ is an exciting way to visit elkhorn Slough, where you will see a fantastic variety of wildlife such as playful sea otters, curious harbor seals, sea lions and hundreds of species of birds. the tour will provide excellent opportunities to view and photograph wildlife close at hand. these two-hour boat cruises include an in-depth look at various aspects of slough ecology, fascinating history and birding in the company of a naturalist guide. $48 per person includes transportation to/from hotel and elkhorn Slough Safari™ Conference begins! all registrants welcome. Monday, September 165:30 – 7:30 p.m.CSDA Annual Conference Begins! President’s Reception with the Exhibitors 2013 CSDA AnnuAl ConferenCe AnD exhibitor ShowCASe8 The networking opportunities for small districts is absolutely fabulous. Meeting with exhibitors that relate to our business is valuable. Speakers that cause you to think outside the box...priceless. – yvonne hilTon, TWain harTe communiTy services DisTricT Program TuESDAy, SEPTEMbER 17, 2013 7:30 a.m. – 3:00 p.m. ExHIBItOR SHOwCASE OPEn 7:30 – 8:30 a.m. COFFEE wItH tHE ExHIBItORS (R AFFLE) 9:00 – 10:45 a.m. OPEnInG KEynOtE PRESEntAtIOn Mike Abrashoff – Former navy Commander and Author of It’s your Ship It’s Your shIp An inspiring story of innovative leadership and organizational transformation, Mike Abrashoff took command of the worst- performing ship in the fleet and made it #1 by changing his leadership style and the culture–not the crew. when Mike Abrashoff took command of the uSS benfold, the ship’s performance ranked at rock-bottom. worse–the crew didn’t feel safe should they be called into action. Determined to improve performance, but without the power to hire, fire or promote personnel, Abrashoff focused on what he could change: the ship’s culture. his innovative approach broke from the traditional command-and-control leadership style and sought to see the ship from the eyes of his crew–creating a guiding set of principles he calls grassroots leadership. his results-oriented approach equips organizations with the strategies, tactics and tools necessary to unleash innovation, lead significant change and increase operational performance. Continental breakfast during presentation. 11:00 a.m. – 12:15 p.m. (SCHEDuLED BREAKOut SESSIOnS) • Media relations: surviving and thriving When Dealing with the Media, Communication Advantage • Mandate reimbursements: What’s still Available and When Will You Get paid? Nichols Consulting • understanding the New GAsB pension standards and What it Means to Your District, Brown Armstrong Accountancy • Best practices in Board protocols, policies & procedures, BHI Management Consulting • the people’s Business – public Meeting Law (ralph M. Brown Act) and the public records Act, Liebert Cassidy Whitmore • social Media in the Workplace – A trap for the unwary but It’s here to stay, Nossaman, LLP 12:15 – 1:30 p.m. LunCH On yOuR Own (ExHIBIt HALL OPEn) 1:30 – 3:00 p.m. ExHIBItOR SHOwCASE FInALE – DESSERt/GRAnD PRIzES 3:15 – 4:30 p.m. SuPER SESSIOn Malcom Kushner – Leading with Laughter: How u.S. Presidents use Humor to Relate, Motivate, and Communicate – And How you Can too! (All registered attendees welcome) humor is a powerful leadership tool. it can command attention, create rapport and make ideas more memorable. it can also relieve tension, defuse conflict and motivate people – if it’s used appropriately. in this program, you will learn simple, proven humor techniques to become a more effective leader – even if you can’t tell a joke. Malcolm and eight former u.S. presidents will show you how: • ronald reagan defused a tough question with humor. • richard nixon created rapport with laughter. • george bush demonstrated simple humor techniques. • Jimmy Carter scored points poking fun at himself. • gerald ford got a 28 second laugh -- on purpose! 3:15 – 4:30 p.m. SPECIALIzED SESSIOnS • Mitigating for species, Water and other Natural resource Impacts of public Agency projects: A holistic Approach, Best Best & Krieger • Cellular Antennas on special District property: the opportunity and the risk, Best Best & Krieger • Navigating Your Way through Bid protests, Meyers Nave regiSter online At ConferenCe.CSDA.net. | #CSDAConf2013 9 7:00 – 9:00 p.m. SPECIAL EVEnt! AN EvENING At thE MoNtErEY BAY AquArIuM Join other CSDA members and friends as we enjoy a strolling dinner at the Monterey bay Aquarium. Dine beside the awe- inspiring Kelp forest exhibit for a diver’s-eye-view of sardines, leopard sharks, wolf-eels and a host of other fishes as they weave through swaying fronds of kelp, just like they do in the wild. or experience the elegance of the Marine Mammal gallery where spectacular life-size models of dolphins and whales swim overhead. You can also choose to sit by the great tide Pool doors, where you’ll enjoy breathtaking views of Monterey bay. then step outside to watch sea life, a sunset or stars from the great tide Pool deck. be sure to add this optional event to your conference registration. the first 150 registered conference attendees are eligible to purchase tickets at a special reduced rate of only $55. regular pricing is $110. includes admission to the Monterey bay Aquarium during the event, dinner, drink tickets, transportation and entertainment. (Optional, Limited Space, Register Early!) WEDNESDAy, SEPTEMbER 18, 2013 8:30 – 9:00 a.m. SDRMA SPOnSORED FuLL PLAtED BREAKFASt (All registered attendees welcome) 9:00 – 10:45 a.m. SDRMA GEnERAL SESSIOn, SAFEty AwARDS, KEynOtE Charles Marshall – “the Character Question – How Character Impacts Business and Community” having good character isn’t just a good idea; it is the skeleton upon which all your financial, emotional, physical, spiritual, and relational success is built. in a conversational and colloquial manner, Charles manages to deliver difficult principles in a humorous fashion. Charles will share how character is built and reveal the importance of integrity, persistence, courage and discipline in your lives. 11:00 a.m. – 12:00 p.m. CSDA FInAnCE CORPORAtIOn BOARD AnD AnnuAL MEEtInG 11:00 a.m. – 12:00 p.m. (SCHEDuLED BREAKOut SESSIOnS) • secret Agent: understanding potential Liability Exposures to Your Agency from the Acts or omissions of Employees and volunteers, SDRMA • AB 1234 required Ethics training part 1, Meyers Nave • the New Normal: Impacts of recent Court Decisions on Assessments, Best Best & Krieger and Willdan & Associates • California Environmental quality Act (CEqA) reform: threat to Environmental protection or Long overdue, Meyers Nave and City of Dublin • Local Agency Formation Commissions 101: A primer for special Districts on the powers and responsibilities of LAFCos, Meyers Nave and California Association of Local Agency Formation Commissions • the Great Board – Best practices for Board Development, BHI Management Consulting 12:15 – 1:30 p.m. CSDA AnnuAL AwARDS LunCHEOn (All registered attendees welcome) Join us as we celebrate the best of special districts with awards including: board President of the Year, general Manager of the Year, the prestigious william hollingsworth Award of excellence, Chapter of the Year, Special District leadership foundation (SDlf) Awards and more! 2013 CSDA AnnuAl ConferenCe AnD exhibitor ShowCASe10 This conference gave me insight and solutions to issues that my district is seeking to overcome. I have taken the experience back to my fellow board members in expectation that what I gained will help us serve our community better. – al morrisseTTe, phelan pinon hills communiTy services DisTricT Program WEDNESDAy, SEPTEMbER 18 CoNT. 1:45 – 2:45 p.m. (SCHEDuLED BREAKOut SESSIOnS) • Workers’ Compensation update – Discussion of updates in Workers’ Compensation reform and the Effect on Claims handling situation, York Risk Services • Liability Claims – FEhA/CrFA Accommodations and the Good Faith Interaction process, SDRMA • AB1234 required Ethics training part 2, Meyers Nave • Why You Can’t Afford Not to prefund opEB!, PARS • Getting to YEs: Gaining voter & Community Approval to Fund Critical projects, The Lew Edwards Group and Godbe Research • pay or play - practical Ways to Implement health Care reform and Avoid penalties, Hanson Bridgett LLP 3:00 – 4:30 p.m. (SCHEDuLED BREAKOut SESSIOnS) • Board Member Liability Issues, SDRMA • reserves: prudent Measures to Assure the Long- term solvency of Your District, Panel of CSDA Finance Corporation consultants and special district management staff • Working with a virtual Workforce, CPS HR Consulting • Designing a public Works Contract that protects Your District, ACEC California, Burke Williams Sorensen, and Morris, Polich & Purdy • the Exceptional Agency: how to Assure Your Agency’s Mission is Fulfilled, Rauch Communications • Can’t We All Just Get Along? -- LAFCos’ power to Initiate Changes of organization Affecting special Districts, California Association of Local Agency Formation Commissions 5:30 – 7:30 p.m. spECIAL DIstrICt LEADErshIp FouNDAtIoN (sDLF) “tAstE oF thE CItY” EvENt (All registered attendees welcome) Join us at a special reception at the Museum of Monterey, just steps away from the Marriott on Custom house Plaza. this museum tells the stories of Monterey County in all its diversity with an emphasis on history, arts, innovation and maritime heritage. Attendees at this reception will have the opportunity to participate in the Special District leadership foundation (SDlf) silent auction to raise funds for scholarships for the Special District leadership Academy programs. A special wine raffle will also be held at 7:00 p.m. be sure to purchase tickets throughout the conference for the chance to win a deluxe 35 bottle wine cellar fully stocked with 35 bottles of wine…almost a $1000 value. You must be present to win! SDlf is an independent, non-profit organization formed to promote good governance and best practices among California’s special districts through certification, accreditation and other recognition programs. the SDlf and its activities are supported through the California Special Districts Association and Special District risk Management Authority. regiSter online At ConferenCe.CSDA.net. | #CSDAConf2013 11 THuRSDAy, SEPTEMbER 19, 2013 8:30 – 10:00 a.m. (SCHEDuLED BREAKOut SESSIOnS) • Chapter roundtable Discussion • From typewriters to ipads: Communication Across Generations, Mejorando Group • hiring retired Annuitants: the Impact of the pEprA of 2013, Liebert Cassidy Whitmore • Board and staff roles in Local Government, Rauch Communications • A sustainable Competency-Based training solution that Works - A District’s perspective, Union Sanitary District • Let’s Be Clear: plain Language for Local Government, Burke Williams Sorensen 10:15 a.m. – 12:00 p.m. CLOSInG BRunCH LEGIsLAtIvE rouNDup: WhAt 2013 IN thE CApItoL MEANs For Your DIstrICt IN 2014 CSDA’s advocacy team will present attendees with the most up-to-date information on the outcome of the biggest state budget and legislative issues impacting special districts in 2013. this year included major proposals on property taxes, new “green” revenue opportunities, updates to CeQA, more transparency and accountability efforts and the implementation of public employee pension reforms. get all the latest legislative results and learn what they mean for special districts going forward. get recognized - submit nominations recognize peers. Each year, CSDA presents various awards during the CSDA Annual Conference and Exhibitor Showcase. There are a number of different categories. Please consider outstanding individuals within your district for individual awards. Chapter awards and district awards are also open for nominations. Visit the Awards section of our website at conference.csda.net for more information. If you have any questions regarding the awards or the awards process, please contact Charlotte Lowe, executive assistant, toll-free at 877.924.2732 or by email at charlottel@csda.net. Deadline for submissions is Friday, August 2, 2013. All applicants will be notified prior to the Annual Conference of the winner. Winners will be awarded at the CSDA Annual Conference & Exhibitor Showcase in Monterey during the Awards Luncheon on Wednesday, September 18. CSDA Recognizes the Best Among Special Districts Do you have a board member, staff member, local chapter or program you feel deserves recognition? 2013 CSDA AnnuAl ConferenCe AnD exhibitor ShowCASe12 The CSDA conference was a great blend of sessions developed to assist our industries and their needs as well as great keynote speakers who were particularly motivating and inspiring to help us breathe new life into our staff positions. – sheryl lanDrum, resource conservaTion DisTricT of GreaTer san DieGo getting to and staying in Monterey HoTEl & loCATioN MOntEREy MARRIOtt HOtEL Monterey Marriott hotel 350 Calle Principal Monterey, CA 93940 to reserve a room at the Monterey Marriott hotel, either book a room through the conference website, conference.csda.net, or contact the Marriott toll-free at 1-800-266-9432. All reservations must be accompanied by a one night room and tax deposit, guaranteed with a major credit card. hotel will not hold any reservations unless secured by this deposit. (All major credit cards accepted.) the first night room and tax becomes non-refunDAble if a reservation is cancelled after the cut-off date of Monday, August 26, 2013. CSDA room rate: $165.00 plus tax. when booking your room, please ask for the CSDA group rate. ARRIVInG At MOntEREy AIRPORt Monterey flights arrive at Monterey Peninsula Airport (MrY) via international and domestic connecting routes. the airport is situated only 10 minutes from downtown Monterey. the advantage of this small airport is that there are no long waiting lines, and security will be conducted without any hassles to the passengers. Car rentals are available at the airport for the short drive to downtown Monterey. A number of car rental companies are represented. Airfare to Monterey, including cheap flights to Monterey, is readily available online all year round. You can also book flights to Monterey via the norman Y. Mineta San Jose international Airport (SJC), which is located just 60 minutes from Monterey. GEttInG AROunD MOntEREy the Monterey trolley runs continuously on a circular route around downtown Monterey and Cannery row from mid-morning to early evening. Car rentals are available, and it is advisable to have access to a car in order to enjoy the beautiful scenery surrounding Monterey. taxicabs and the Monterey-Salinas transit bus are also available. Monterey bay and the Cannery row area are best explored on foot as there is so much to see and enjoy. Californian sea lions and harbor seals, otters, and pelicans are just a few of the varieties of sea life that you might encounter on your walks. CAR REntAL DISCOunt enterprise rent A Car is offering all CSDA conference attendees a special conference discount. You can make reservations online at www.enterprise.com or call directly to 800-rent-A-Car. the group code is: nACA 107. reservations are recommended. 2013 CSDA AnnuAl ConferenCe AnD exhibitor ShowCASe14 thrEE WAYs to rEGIstEr 1. online by visiting the CSDA Annual Conference website at conference.csda.net 2. fAx your registration form to 916-520-2465. All faxed forms must include payment. 3. MAil CSDA, 1112 i Street, Suite 200, Sacramento, CA 95814, please include registration form along with payment. Check should be made payable to: California Special Districts Association. Not surE IF You ArE A MEMBEr Contact the CSDA office at 877-924-2732 to find out if your agency or company is already a member. to learn more about the benefits of membership contact Cathrine lemaire at cathrinel@csda.net or call toll-free 877-924-2732. rEGIstrAtIoN FEEs INCLuDE: • President’s reception with the exhibitors Monday evening • Keynote Sessions and Super Session • exhibitor Showcase Dessert on tuesday • exhibitor Showcase on Monday and tuesday • SDrMA full Plated breakfast on wednesday • Awards luncheon on wednesday • All breakout Sessions on tuesday, wednesday, and thursday • SDlf “taste of the City” reception • Closing brunch on thursday Name:title: District: Address: City: state: Zip: phone: Fax: Email:Website: Emergency Contact: Member status: Member Non-member vegetarian Any special Needs: Conference registration Fees Early Bird (on or before Aug. 9)regular (after Aug. 9)suBtotAL CsDA Member - Full Conference $525.00 $575.00 Non-member - Full Conference $685.00 $735.00 Guest - Full Conference (Cannot be from a district) vegetarian $250.00 $300.00 CsDA Member - one-day registration tuesday Wednesday thursday $250.00 each day $275.00 each day Non-member - one-day registration tuesday Wednesday thursday $410.00 each day $435.00 each day separate registration Fees suBtotAL pre-Conference Workshop: sDLA Module 1: Governance Foundations - sept. 16 $225.00 $375.00 pre-Conference Workshop: Comprehensive organizational Assessessment for special Districts - sept. 16 $150.00 $200.00 CsDA Golf tournament (includes lunch) - sept. 16 $125.00 Monterey regional Waste Management District tour - sept. 16 $ 25.00 (includes transportation) (limited seating) Moss Landing harbor District and Elkhorn slough safari - sept. 16 $ 48.00 (includes transportation) (limited to 21 attendees) Evening at the Monterey Bay Aquarium (limited attendees) - sept. 17 $ 55.00 (first 150 registered conference attendees - $110 after 150 attendees) CsDA Awards Luncheon (Guests only) - sept. 18 $ 40.00 sDLF “taste of the City” reception (Guests only) - sept. 18 $ 50.00 totAL payment type: Check visa MasterCard AMEX Discover Account name:Account Number: Expiration date:Authorized signature: Member Non-member ATTENDEE REgiSTRATioN foRM 2013 CSDA Annual Conference and exhibitor Showcase Monterey, California (Please print) All future correspondence will be sent to the key contact. one form per attendee. Cancellations/Substitution Policy: Cancellations must be in writing and received by CSDA not later than August 23, 2013. All cancellations received by this date will be refunded less a $75 processing fee. there will be no refunds for cancellations made after August 23, 2013. Substitutions are acceptable and must be done in writing no later than August 30, 2013. Please submit any cancellation notice or substitution request to sharonf@csda.net or fax to 916-520-2465. Consent to Use Photographic Images: registration and attendance at, or participation in, CSDA meeting and other activities constitutes an agreement by the registrant to CSDA’s use and distribution (both now and in the future) of the registrant or attendee’s image or voice in photographs, videotapes, electronic reproductions and audiotapes of such events and activities. regiSter online At ConferenCe.CSDA.net. | #CSDAConf2013 15 TUeSDAy, SePTeMbeR 17, 2013 11:00 a.m. – 12:15 p.m. – Breakout sessions Media relations: surviving and thriving When Dealing with the Media Mandate reimbursements: What’s still Available and When Will You Get paid? understanding the New GAsB pension standards and What it Means to Your District Best practices in Board protocols, policies & procedures the people’s Business – public Meeting Law (ralph M. Brown Act and the public records Act) social Media in the Workplace - A trap for the unwary but It’s here to stay 3:15 – 4:30 p.m. CsDA super session: Leading with Laughter: how u.s. presidents use humor to relate, Motivate, and Communicate – And how You Can too! specialized session: Mitigating for species, Water and other Natural resource Impacts of public Agency projects: A holistic Approach specialized session: Cellular Antennas on special District property: the opportunity and the risk specialized session: Navigating Your Way through Bid protests WeDneSDAy, SePTeMbeR 18, 2013 11:00 a.m. – 12:00 p.m. – Breakout sessions secret Agent: understanding potential Liability Exposures to Your Agency from the Acts or omissions of Employees and volunteers AB 1234 required Ethics training part 1 the New Normal: Impacts of recent Court Decisions on Assessments California Environmental quality Act (CEqA) reform: threat to Environmental protection or Long overdue Local Agency Formation Commissions 101: A primer for special Districts on the powers and responsibilities of LAFCos the Great Board – Best practices for Board Development 1:45 – 2:45 p.m. – Breakout sessions Workers’ Compensation update – Discussion of update in Workers’ Compensation reform and the Effect on Claims handling situations Liability Claims – FEhA/CrFA Accommodations and the Good Faith Interaction process AB1234 required Ethics training part 2 Why You Can’t Afford Not to prefund opEB! Getting to YEs: Gaining voter & Community Approval to Fund Critical projects pay or play - practical Ways to Implement health Care reform and Avoid penalties 3:00 – 4:30 p.m. – Breakout sessions Board Member Liability Issues reserves: prudent Measures to Assure the Long-term solvency of Your District Working with a virtual Workforce Designing a public Works Contract that protects Your District the Exceptional Agency: how to Assure Your Agency’s Mission is Fulfilled Can’t We All Just Get Along? -- LAFCos’ power to Initiate Changes of organization Affecting special Districts ThURSDAy, SePTeMbeR 19, 2013 8:30 – 10:00 a.m. – Breakout sessions Chapter roundtable Discussion From typewriters to ipads: Communication Across Generations hiring retired Annuitants: the Impact of the pEprA of 2013 Board and staff roles in Local Government A sustainable Competency-Based training solution that Works - A District’s perspective Let’s Be Clear: plain Language for Local Government ATTENDEE bREAkouT SElECTioN foRM 2013 CSDA Annual Conference and exhibitor Showcase Please indicate the breakout sessions you plan on attending. Mobile App Want to see the conference schedule, list of exhibitors, manage your breakout schedule and read about keynote speakers all from the convenience of your phone? Download Guidebook from the Apple App Store or Android Marketplace or visit guidebook.com/getit. Then search for CSDA Annual Conference andExhibitor Showcase.