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HomeMy WebLinkAbout2014-06-12 - Board of Directors Meeting Agenda PacketYorba Linda '"Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, June 12, 2014, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Robert R. Kiley, President Ric Collett, Vice President Michael J. Beverage Phil Hawkins Gary T. Melton 4. ADDITIONS /DELETIONS TO THE AGENDA 5. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 6. SPECIAL RECOGNITION 6.1. Introduction of Recently Hired Employees Alex Thomas, Water Quality Engineer Bryan Hong, Associate Engineer 7. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 7.1. Minutes of the Board of Directors Regular Meeting held May 22, 2014 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Special Meeting held May 30, 2014 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 $719,107.81. 7.4. Unaudited Financial Statements for the Period Ending March 31, 2014. Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending March 31, 2014. 7.5. Progress Payment No. 2 for Well 21 Drilling Contract Recommendation: That the Board of Directors approve Progress Payment No. 2 in the net amount of $366,903.30 to Bakersfield Well and Pump, Co. for Drilling of Well No. 21, Job No. 2009 -22. 7.6. No -Cost Change Order No. 1 for Well 21 Drilling Contract Recommendation: That the Board of Directors approve Change Order No. 1 in the amount of $0.00 and 70 additional calendar days to Bakersfield Well and Pump Co., for construction of the Well 21 Drilling Project. Job No. 2009 -22. 7.7. Construction Contract for the YLHS Park Pipeline Relocation Project Recommendation: That the Board of Directors award the Construction Contract for the YLHS Park Pipeline Relocation Project to Vido Samarzich, Inc. for $345,780, Job No. 2012 -13. 7.8. Awarding of Uniform - Supply Contract Recommendation: That the Board of Directors authorize the Acting General Manager to enter into a Uniform Supplier Contract with Aramark. The term of the contract will be 36 months with service starting on July 1, 2014 and ending on June 30, 2017, with a total estimated contract cost of $30, 000. 7.9. Renewal of Janitorial Contract Recommendation: That the Board of Directors authorize the Acting General Manager to renew the Janitorial Service Contract with SC PrimeSource, Inc. The term of the contract would be 12 months with service starting on July 1, 2014 and ending on June 30, 2015, with a total estimated 12 -month contract cost of $63,147.60. 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. Appropriations Limit for FY 2014/15 Recommendation: That the Board of Directors approve Resolution No. 14 -03 Adopting the Appropriations Limit for Fiscal Year 2014115. 8.2. Proposed Budgeted Positions for Fiscal Year 2014/2015 Recommendation: That the Board of Directors approve Resolution No. 14-04 Approving the Budgeted Positions for Fiscal Year 201412015 and Rescinding Resolution No. 13 -18. 8.3. Adopting a Public Investment Policy Recommendation: That the Board of Directors approve Resolution No. 14 -05 Setting Forth a Public Funds Investment Policy and Rescinding Resolution No. 13- 06. 8.4. Financial Reserves Policy for FY 2014/15 Recommendation: That the Board of Directors approve Resolution No. 14 -06 Adopting the Financial Reserves Policy and Rescinding Resolution No. 13 -07. 8.5. FY 2014/15 Water Rate Increase Recommendation: That the Board of Directors approve Resolution No. 14 -07 Setting Water Rates Effective July 1, 2014 and Rescinding Resolution No. 13 -13. 8.6. Proposed Budget for FY 2014/15 Recommendation: That the Board of Directors approve Resolution No. 14 -08 Adopting the Budget for Fiscal Year 2014115 and Rescinding Resolution No. 13 -10. 9. REPORTS. INFORMATION ITEMS. AND COMMENTS 9.1. President's Report • OCSD 60th Anniversary Video Presentation 9.2. Directors' Reports 9.3. Acting General Manager's Report 9.4. General Counsel's Report 9.5. Future Agenda Items and Staff Tasks 10. COMMITTEE REPORTS 10.1. Executive - Administrative - Organizational Committee (Kiley / Collett) • Minutes of the meeting held June 9, 2014 at 4:00 p.m. (To be provided at the next regular Board meeting.) • Next meeting is scheduled to be held July 14, 2014 at 4:00 p.m. 10.2. Finance - Accounting Committee (Hawkins / Beverage) Minutes of the meeting held May 20, 2014 at 4:00 p.m. Next meeting is scheduled to be held June 23, 2014 at 4:00 p.m. 10.3. Personnel -Risk Management Committee (Hawkins / Melton) • Minutes of the meeting held June 10, 2014 at 4:00 p.m. (To be provided at the next regular Board meeting.) • Next meeting is scheduled to be held July 8, 2014 at 4:00 p.m. 10.4. Planning- Engineering- Operations Committee (Melton / Beverage) • Minutes of the meeting held June 5, 2014 at 10:00 a.m. (To be provided at the next regular Board meeting.) • Next meeting is scheduled to be held July 3, 2014 at 4:00 p.m. 10.5. Public Affairs - Communications - Technology Committee (Collett / Kiley) • Minutes of the meeting held May 14, 2014 at 4:00 p.m. • Minutes of the meeting held June 11, 2014 at 4:00 p.m. (To be provided at the next regular Board meeting.) • Next meeting is scheduled to be held July 7, 2014 at 4:00 p.m. 10.6. Organizational Performance Review Ad Hoc Committee (Beverage / Hawkins) • Next meeting is yet to be scheduled. 10.7. YLWD -City of Placentia Joint Agency Committee (Beverage / Melton) • Minutes of the meeting held May 12, 2014 at 10:00 a.m. (To be provided at the next regular Board meeting.) • Next meeting is yet to be scheduled. 10.8. YLWD -City of Yorba Linda Joint Agency Committee (Kiley / Collett) Minutes of the meeting held April 22, 2014 at 5:00 p.m. • Next meeting is scheduled to be held June 24, 2014 at 5:00 p.m. 10.9. YLWD - MWDOC -OCWD Joint Agency Committee (Kiley / Beverage) • Minutes of the meeting held May 27, 2014 at 4:00 p.m. Next meeting is scheduled to be held July 22, 2014 at 4:00 p.m. 11. INTERGOVERNMENTAL MEETINGS 11.1. YL Planning Commission - May 28, 2014 (Melton) 11.2. OCSD - May 28, 2014 (Kiley) 11.3. ISDOC - May 29, 2014 (Hawkins) 11.4. YL City Council - June 3, 2014 (Kiley) 11.5. MWDOC Board - June 4, 2014 (Melton) 11.6. OCWD Board - June 4, 2014 (Kiley) 11.7. YL LMCAC - June 5, 2014 11.8. WACO - June 6, 2014 (Kiley /Hawkins) 11.9. YL Planning Commission - June 11, 2014 (Beverage) 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from June 13, 2014 - July 31, 2014 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 30, 2014 Recommendation: That the Board of Directors authorize Director attendance at this event 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 Real Property Negotiators Pursuant to Section 54956.8 of the California Government Code Property: 4622 Plumosa Drive, Yorba Linda CA Agency Negotiators: Steve Conklin Negotiating Parties: To Be Determined Under Negotiation: Price and Terms of Payment 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 potential claim submitted on behalf of Charles Busch. 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 potential claim submitted on behalf of Christopher and Milany Pineda. Number of Potential Cases: One 14.5. 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 received by the District. Number of Potential Cases: One 14.6. 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 Number of Potential Cases: One 14.7. Public Employment (Recruitment) Pursuant to Section 54957 of the California Government Code Title: General Manager 15. ADJOURNMENT 15.1. The next Regular Board of Directors Meeting will be held Thursday, June 26, 2014 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. AGENDA REPORT Meeting Date: June 12, 2014 ITEM NO. 7.1 Subject: Minutes of the Board of Directors Regular Meeting held May 22, 2014 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Description: Type: 052214 BOD - Minutes.doc BOD Mtg Minutes 05/22/14 Minutes Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 1 K 3 4 5 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 22, 2014, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 rLCUUM Vr ALLCUTADJUM President Kiley led the pledge. ROLL CALL DIRECTORS PRESENT Robert R. Kiley, President Michael J. Beverage Phil Hawkins Gary T. Melton DIRECTORS ABSENT Ric Collett, Vice Presiden STAFF rrccacnl I Steve Conklin, Acting General Manager John DeCriscio, Operations Manager Gina Knight, Human Resources / Risk Manager Delia Lugo, Finance Manager Art Vega, Acting IT Manager Annie Alexander, Executive Secretary Cindy Botts, Management Analyst Damon Micalizzi, Public Information Officer ALSO PRESENT Brett Barbre, Director, MWDSC and MWDOC Gene Hernandez, Mayor Pro Tem, City of Yorba Linda Richard A. Freschi, Director, Serrano Water District James R. Fisler, President, Mesa Water District Paul E. Schoenberger, General Manager, Mesa Water District Art Kidman, Partner, Kidman Law LLP Eddy Beltran, Senior Counsel, Kidman Law LLP Connie C. Almond, Associate, Liebert Cassidy Whitmore Daniel Mole, Chair, YLWD Citizens Advisory Committee ADDITIONS /DELETIONS TO THE AGENDA None. PUBLIC COMMENTS None. 1 6. COMMITTEE REPORTS 6.1. Citizens Advisory Committee (Kiley) ■ Minutes of the meeting held April 28, 2014 at 8:30 a.m. were provided in the agenda packet. Mr. Mole provided a summary of the topics discussed during the meeting. ■ Next meeting is scheduled to be held June 23, 2014 at 8:30 a.m. Mr. Mole left the meeting at this time. 7. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Melton, to approve the Consent Calendar. Motion carried 4 -0 -1 with Director Collett being absent. 7.1. Minutes of the Board of Directors Regular Meeting held April 24, 2014 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Special Meeting held May 5, 2014 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Minutes of the Board of Directors Regular Meeting held May 8, 2014 Recommendation: That the Board of Directors approve the minutes as presented. 7.4. Minutes of the Board of Directors Special Meeting held May 13, 2014 Recommendation: That the Board of Directors approve the minutes as presented. 7.5. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,144,723.07. 7.6. Progress Payment No. 13 for the Yorba Linda Blvd Pump Station Project Recommendation: That the Board of Directors approve Progress Payment No. 13 in the net amount of $94,623.25 to ECI, Inc. for construction of the Yorba Linda Blvd Pump Station Project, Job No. 2008 - 17B. 7.7. Proposed Change Order No. 2 for the Yorba Linda Blvd. Pump Station Project Recommendation: That the Board of Directors approve Change Order No. 2 in the amount of $0.00 and 39 additional days to Environmental Construction, Inc. for construction of the Yorba Linda Blvd. Pump Station Project, Job No. 2008 -17b. 7.8. Terms and Conditions for Water and Sewer Service with the City Ventures Communities, LLC Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with City Ventures Communities, LLC, Job No. J2014 -05. 8. ACTION CALENDAR 8.1. Request to Support Election of James R. Fisler or Richard Freschi as Alternate LAFCO Commissioner Mr. Conklin explained that both individuals requesting support were in attendance at the meeting and available to address the Board. Director Fisler and Director Freschi addressed the Board and provided an overview of their background and experience in public service. The Board then briefly discussed the two candidates. Director Melton made a motion, seconded by Director Hawkins, to authorize President Kiley to vote in the Orange County Special District Selection Committee election; designate Vice President Collett as the alternate voting member; and choose to support the election of either James R. Fisler or Richard Freschi as the Alternate Special District Member for LAFCO. Motion carried 4 -0 -1 with Director Collett being absent. Directors Freschi and Fisler and Mr. Schoenberger left the meeting at this time. 8.2. Proposed Amendments to the CSDA Bylaws Mr. Conklin explained that the CSDA Board of Directors had approved several recommended updates to the organization's bylaws which were now being put before the membership for consideration. Director Melton made a motion, seconded by Director Hawkins, to support the adoption of the 2014 proposed amendments to the CSDA Bylaws. Motion carried 4 -0 -1 with Director Collett being absent. 8.3. Proposed New CASA Bylaws Mr. Conklin explained that the CASA Executive Board had approved several recommended updates to the organization's bylaws which were now being put before the voting members for consideration. 3 Director Hawkins made a motion, seconded by Director Melton, to approve repealing the existing CASA bylaws and adopting the proposed new bylaws. Motion carried 4 -0 -1 with Director Collett being absent. 8.4. Candidate's Statements of Qualifications for November 4, 2014 General Election Mr. Conklin explained that staff had received correspondence from the OC Registrar of Voters relative to the Candidate's Statements of Qualifications for the 2014 General Election. The District needs to determine if it intends to limit these statements to 200 or 400 words and if it will pay the expenses for publication. Historically, the District has determined to limit them to 200 words and not to pay the associated costs. Director Hawkins suggested that the District consider increasing the limit to 400 words and continue with the practice of not paying for the publication expenses. 9. DISCUSSION ITEMS 9.1. Introduction of Connie C. Almond, Associate, Liebert Cassidy Whitmore (Special Counsel) Ms. Almond introduced herself, provided the Board with an overview of her work experience, and explained that she would be taking over for Richard Kreisler who was soon retiring. 12 14. CLOSED SESSION The meeting was adjourned to Closed Session at 8:55 a.m. All Directors in attendance were present. Also present were Mrs. Knight and Ms. Almond. 14.1. Public Employment (Recruitment) Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 9:08 a.m. President Kiley announced that no action was taken during Closed Session that was required to be reported under the Brown Act. Ms. Almond left the meeting at this time. 9.2. Proposed Budget for FY 2014/15 Mr. Conklin provided a broad overview of the anticipated expenses and revenue. He explained that there had been a slight increase of $3,144 in the Public Affairs Division Budget due to a change in the District's contribution for continued participation in MWDOC's Choice Program. Mr. Conklin invited the Board to provide staff with any comments they might have regarding the draft budget over the next few days. Staff is planning to bring the final draft to the Board for consideration at the regular meeting scheduled June 12, 2014. Mr. Conklin and Mrs. Lugo then responded to questions from the Board regarding the financial model created by Raftelis and its use in the future. Mrs. Botts left the meeting at this time. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report • ACWA Spring Conference — May 7 -9, 2014 • OCSD State of the District Reception — May 21, 2014 • President Kiley reported on his attendance at the above listed events. A video presentation distributed at OCSD's reception will be shared with the Board at the next regular meeting. 10.2. Directors' Report ■ OC Water Summit — May 16, 2014 Director Melton reported on his attendance at this event. 10.3. Acting General Manager's Report Mr. Conklin reported on the status of various construction projects in progress, the Joint Agency Turf Removal Demonstration Project with the City of Placentia, and the LAFCO hearing for the District's annexation to OCWD. He stated that staff has been heavily involved with budget 5 preparations but will soon begin focusing on updating the District's policies and procedures. Following discussion with the Executive- Administrative- Organizational Committee, it was suggested that a Board workshop meeting be scheduled on July 31, 2013 to examine this process. Mr. Conklin further reported that there had been a good turnout at the employee picnic. He then briefly commented on a request from a customer to replace a recently installed radio -read meter with a manually read meter. Mr. DeCriscio then notified the Board that staff would need to move funds from the maintenance reserve account in order to pay for emergency repair work on Well #1 after a pump motor failure. ■ Minutes of the meeting held May 12, 2014 at 4:00 p.m. were provided in the agenda packet. ■ Next meeting is scheduled to be held June 9, 2014 at 4:00 p.m. 11.2. Finance - Accounting Committee (Hawkins / Beverage) ■ Minutes of the meeting held April 28, 2014 at 4:00 p.m. were provided in the agenda packet. ■ Minutes of the meeting held May 20, 2014 at 4:00 p.m. will be provided at the next regular Board meeting. ■ Next meeting is scheduled to be held June 23, 2014 at 4:00 p.m. 11.3. Personnel -Risk Management Committee (Hawkins / Melton) ■ Minutes of the meeting held May 6, 2014 at 4:00 p.m. were provided in the agenda packet. ■ Next meeting is scheduled to be held June 10, 2014 at 4:00 p.m. I 11.4. Planning- Engineering- Operations Committee (Melton / Beverage) ■ Minutes of the meeting held May 1, 2014 at 4:00 p.m. were provided in the agenda packet. ■ Next meeting is scheduled to be held June 5, 2014 at 4:00 p.m. 11.5. Public Affairs - Communications - Technology Committee (Collett / Kiley) ■ Minutes of the meeting held May 14, 2014 at 4:00 p.m. will be provided at the next regular Board meeting. ■ Next meeting is scheduled to be held June 11, 2014 at 4:00 p.m. 11.6. Organizational Performance Review Ad Hoc Committee (Beverage / Hawkins) ■ Next meeting is yet to be scheduled. 11.7. YLWD -City of Placentia Joint Agency Committee (Beverage / Melton) ■ Minutes of the meeting held May 12, 2014 at 10:00 a.m. will be provided at the next regular Board meeting. ■ Next meeting is yet to be scheduled. 11.8. YLWD -City of Yorba Linda Joint Agency Committee (Kiley / Collett) ■ Minutes of the meeting held April 22, 2014 at 5:00 p.m. will be provided at the next regular Board meeting. ■ Next meeting is scheduled to be held June 24, 2014 at 5:00 p.m. 11.9. YLWD - MWDOC -OCWD Joint Agency Committee (Kiley / Beverage) ■ Next meeting is scheduled to be held May 27, 2014 at 4:00 p.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. YL LMCAC —May 8, 2014 (Beverage) Director Beverage attended and commented on a letter read during public comments suggesting that Members Gianelli and Schuler should resign from the LMCAC due to a conflict of interest. 7 Director Barbre left the meeting at this time. 12.2. LAFCO — May 14, 2014 (Beverage) Director Beverage did not attend this meeting. 12.3. YL Planning Commission — May 14, 2014 (Beverage) Director Beverage attended and commented on a number of conditional use permits that were considered during the meeting. 12.4. YL City Council — May 20, 2014 (Kiley) Director Kiley attended and noted that the public comments were quite extensive. He also commented on the recognition of an individual for their community service efforts. 12.5. MWDOC Board — May 21, 2014 (Melton) Director Melton attended and noted that MWDOC's Board had determined to endorse Director Fisler's in the upcoming LAFCO election. 12.6. OCWD Board — May 21, 2014 Mr. Conklin attended and noted that OCWD's Board had also determined to endorse Director Fisler in the upcoming LAFCO election. He then commented on the Huntington Beach Desalination Project and an agreement with Kennedy /Jenks to prepare documents in support of the North Basin National Contingency Plan process. He also reported that an item regarding Senate Bill 26 was added to the agenda. Townsend Public Affairs is recommending local agencies oppose this proposed legislation. 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 23, 2014 — June 30, 2014 The Board reviewed the activity calendar and made no changes. Director Melton left the meeting at this time. 14. CLOSED SESSION CONTINUED The meeting was adjourned to Closed Session at 10:09 a.m. Directors Beverage, Hawkins, and Kiley were present. Also present were Mrs. Knight and Messrs. Conklin, Kidman, and Beltran. 14.2. Conference with Real Property Negotiators Pursuant to Section 54956.8 of the California Government Code Property: 4622 Plumosa Drive, Yorba Linda CA Agency Negotiators: Steve Conklin Negotiating Parties: Prospective Buyers Under Negotiation: Price and Terms of Payment 8 14.3. 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) 14.4. 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 line break at 1301 North Rose Drive, Placentia CA 92870. Number of Potential Cases: One 14.5. 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 The Board reconvened in Open Session at 10:30 a.m. Mr. Kidman announced that the Board of Directors had approved a settlement agreement in regards to Item No. 14.3. (ACWA/JPIA, et al v. Insurance Company State of Pennsylvania, et al., Orange County Superior Court Case No. 00486884 and US District Court, Central District Cal., So. Div., Case No. SACV11 -1124) by unanimous vote on April 10, 2014. This insurance coverage case was related to the Freeway Complex Fire litigation which was previously settled by action of the Board of Directors and announced on July 26, 2012. A copy of the two settlement agreements and an agreement between the District and ACWA /JPIA in regards to the handling of litigation are all available as public records. No other action was taken during Closed Session that was required to be reported under the Brown Act. 9 15. ADJOURNMENT 15.1. The meeting was adjourned at 10:33 a.m. The next Regular Board of Directors Meeting will be held Thursday, June 12, 2014 at 8:30 a.m. Steven R. Conklin =4 10 AGENDA REPORT Meeting Date: June 12, 2014 ITEM NO. 7.2 Subject: Minutes of the Board of Directors Special Meeting held May 30, 2014 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Description: Type: 053014 BOD - Minutes.doc BOD Mtg Minutes 05/30/14 Minutes Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 1 K 3 4. MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Friday, May 30, 2014, 8:00 a.m. 1717 E Miraloma Ave, Placentia CA 92870 rces /Risk Manager 5. CLOSED SESSION The meeting was adjourned to Closed Session at 8:01 a.m. All Directors in attendance were present. Also present was Mrs. Knight. 5.1. Public Employment (Recruitment) Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 8:47 a.m. President Kiley announced that no action was taken during Closed Session that was required to be reported under the Brown Act. 1 6. ADJOURNMENT 6.1. The meeting was adjourned at 8:48 a.m. The next Regular Board of Directors Meeting will be held Thursday, June 12, 2014 at 8:30 a.m. Robert R. Kiley Presic i• AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Prepared By: Richard Cabadas, Accounting Assistant I Budgeted: Cost Estimate Funding Source Dept: Reviewed by Legal: Subject: Payments of Bills, Refunds, and Wire Transfers SUMMARY: ITEM NO. 7.3 Yes $719,107.81 All Funds Finance N/A 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 $719,107.81. DISCUSSION: The major items and wires on this disbursement list are as follows: A check of $159,482.10 to MWH Americas, Inc. for professional engineering services; and a wire of $22,838.06 to Southern California Edison for April 2014 electric fees. The balance of $296,893.99 is routine invoices. The Accounts Payable check register total is $479,214.15; Payroll Nos. 11, 11 F and 12F are $234,992.78 and $4,900.88, respectively and the disbursements of this agenda report are $719,107.81. A summary of the checks is attached. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi - monthly. ATTACHMENTS: Name: 14 -CS 0612.pdf 14 CC 0612.pdf CkReg061214.pdf Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 Description: CAP SHEET CREDIT CARD SUMMARY CHECK REGISTER Type: Backup Material Backup Material Backup Material June 12, 2014 CHECK NUMBERS: Manual Checks 63488 Computer Checks 63489 -63599 WIRE: W052814 SO. CAL. GAS CO TOTAL OF CHECKS & WIRES PAYROLL NO. 11: Direct Deposits Third Party Checks 5868 -5880 Payroll Taxes PAYROLL NO. 11 F: Direct Deposits Third Party Checks Payroll Taxes TOTAL PAYROLL NO. 11 PAYROLL NO. 12F: Direct Deposits Third Party Checks Payroll Taxes I%] r_111111 9_\'/:19]>IIII z [eli V TOTAL OF PAYROLLS 8,185.94 448,190.15 456,376.09 22,838.06 22,838.06 $479,214.15 $ 145,637.64 $ 47,197.12 $ 38,479.83 231,314.59 $ 2,947.44 $ 0.00 $ 730.75 3,678.19 $234,992.78 $ 4,080.40 $ 0.00 $ 820.48 4,900.88 $4,900.88 $239,893.66 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $719,107.81 ------------------------------------------------------------------ ------------------------------------------------------------------ APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF June 12, 2014 ------------------------------------------------------------------ ------------------------------------------------------------------ Cal Card Credit Card U S Bank 4/28/14- 5/29/14 Date Vendor Name Amount Description 04/28/14 LIGHT BULBS, ETC. 137.55 LIGHT BULBS 05/05/14 NATIONAL PRODUCTS INC 37.23 RAMOUNT BALL AND BASE 05/06/14 GRAINGER 307.53 MOTOR 05/12/14 FULLERTON PAINT 163.46 PAINT FOR WELLS 05/14/14 ANSWER ONE 671.41 ANSWERING SERVICE 05/14/14 MAIL FINANCE 313.93 LEASE - H1201197 - 05/08/14 - 08/07/14 05/14/14 STAR12 NATIONAL SEMINAR 1,992.00 REGISTRATIONS FOR (8) MEMBERSHIPS 05/14/14 HOME DEPOT 113.76 LANDSCAPE SUPPLIES FOR REPAIRS 05/15/14 SCHORR METALS 31.36 BUILDING REPAIR 05/15/14 ABS POWER BRAKE 324.00 ABS CONTROL 05/19/14 BYBLOS MEDITERRANEAN GRILL 45.62 WELCOMING & PLANNING LUNCH FOR ENGINEERING 05/19/14 WOOD RANCH BBQ 1,868.10 EMPLOYEE PICNIC 2014 - FOOD 05/20/14 STAR12 NATIONAL SEMINAR 996.00 REGISTRATIONS FOR (4) MEMBERSHIPS 05/20/14 HAAKER 352.82 PARTS AND LABOR TO REPAIR CAMERA 05/20/14 MICHAELS 99.28 PICTURE FRAMES 05/21/14 STAR12 NATIONAL SEMINAR 249.00 REGISTRATION FOR (1) MEMBERSHIP 05/21/14 HOME DEPOT 9.05 LANDSCAPE SUPPLIES 05/22/14 HOME DEPOT 106.92 BATTERY REPLACEMENT 05/23/14 ESRI 1,515.00 ARC GIS2: ESSENTIAL WORKFLOW SEMINAR 05/27/14 STAR12 NATIONAL SEMINAR 75.00 MS WORD TRAINING 05/27/14 ORCHARD 5.88 STAKES FOR CONCRETE WORKS 05/27/14 HARRINGTON INDUSTRIAL 91.35 CL2 PARTS 05/28/14 ONLINE INFORMATION SERVICE 390.20 UTILITY EXCHANGE REPORT 05/28/14 INLAND GROUP 3,873.92 SPRING NEWSLETTER AND MAILING 05/28/14 WELLS SUPPLY 11,516.93 APRIL 2014 INVOICES 05/28/14 DAN COPP 150.00 LANDFILL FEES 05/28/14 FULLERTON PAINT 95.15 PAINT AND SUPPLIES 05/29/14 VILLAGE NURSERIES 17.71 LANDSCAPE SUPPLIES 05/29/14 HARRINGTON INDUSTRIAL 1,148.04 CL2 PARTS 05/29/14 HARRINGTON INDUSTRIAL 55.26 CL2 PARTS TOTAL 26,753.46 Yorba Linda Water District Check Register For Checks Dated: 05/23/2014 thru 06/12/2014 Check No. Date Vendor Name Amount Description 63514 06/12/2014 ACWA /JPIA 260.00 ACWA/JPIA CONF - LUGO & BOTTS 63499 06/12/2014 ALLEN FONSECA 36.55 CUSTOMER REFUND 63515 06/12/2014 Alternative Hose Inc. 45.99 AUTO MAINTENANCE - #168 63512 06/12/2014 AMS PAVING 962.22 CUSTOMER REFUND 63516 06/12/2014 Anaheim Wheel & Tire 145.00 MOUNT & BALANCE TIRE #192 63517 06/12/2014 Anthem Blue Cross EAP 166.32 EAP INSURANCE - JUNE 2014 63518 06/12/2014 Apollo Technologies Inc. 430.00 WATER TREATMENT - CLOSED LOOPS 63519 06/12/2014 Aquatic Inspections, Inc. 5,975.00 INSPECT /CLEAN HIGHLAND RESERVO 63520 06/12/2014 Aramark 771.01 UNIFORM SERVICE 63531 06/12/2014 ARC 0.05 PW DMF /SPECS 63521 06/12/2014 Associated Laboratories 2,969.70 SOIL SAMPLE - WELL 11 63522 06/12/2014 AT & T - Calnet2 3,128.79 ATT CALNET2 63523 06/12/2014 AT & T Mobility 45.93 CIRCUIT 78KS315PT - MAY 2014 63524 06/12/2014 Autoscribe Corporation 399.25 PMTS THROUGH VISION GATEWAY 63508 06/12/2014 BAKERSFIELD WELL & PUMP CO 842.32 CUSTOMER REFUND 63525 06/12/2014 Cal Society - Municipal Finance Officers 150.00 CSMFO MEETING 63526 06/12/2014 CalCard US Bank 26,753.46 CREDIT CARD TRANSACTIONS - APRIL & MAY 2014 63527 06/12/2014 CDW Government, Inc 817.17 INTEL SGL PT 10 BASE ENET 63598 06/12/2014 City Of Anaheim 17,214.42 RICHFIELD - ELEC - APRIL 2014 63528 06/12/2014 City Of Placentia 7,255.24 SEWER FEES - MAY 2014 63529 06/12/2014 Clinical Lab. Of San Bern. 3,265.00 SAMPLE TESTING 63530 06/12/2014 CNA Surety 500.00 HONESTY BOND 71497797 - LUGO 63491 06/12/2014 Craig Pahl 5,063.71 CUSTOMER REFUND - OVER BILLING 63532 06/12/2014 Culligan of Santa Ana 1,999.40 PE14" TANK - TRANSPORTATION FEE & SOFTENER 63533 06/12/2014 Cummins Cal Pacific, LLC 261.12 FUEL - PUMP - #175 63510 06/12/2014 DANA OSON 51.91 CUSTOMER REFUND 63536 06/12/2014 Dean Criske Trucking 638.60 SAND & BASE 63502 06/12/2014 DEANNA RINEHART 178.43 CUSTOMER REFUND 63490 06/12/2014 DELORES OCHOA 156.57 CUSTOMER REFUND 63534 06/12/2014 Delta Wye Electric, Inc. 958.40 Receivings Transaction Entry 63535 06/12/2014 DME Incorporated 1,064.29 MAINTENANCE - HIGHLAND #1 63497 06/12/2014 EDWIN KHANBEIGI 26.59 CUSTOMER REFUND 63506 06/12/2014 EDWIN WEN 25.14 CUSTOMER REFUND 63537 06/12/2014 Eisel Enterprises, Inc. 1,246.64 438 METER BOX AND COVER 63550 06/12/2014 Environmental Equipment Supply 505.76 POWER SHINE DETERGENT 63538 06/12/2014 Equarius Waterworks 419.57 PR3- Pre /Post Tax Deduction 63509 06/12/2014 ERNIE LIM 130.54 CUSTOMER REFUND 63539 06/12/2014 ESRI 11,592.00 ArcGIS MAINTENANCE 63542 06/12/2014 EyeMed 1,296.60 EYE MED - JUNE 2014 63540 06/12/2014 Fairway Ford Sales, Inc. 740.26 INVERTER - #203 63541 06/12/2014 Federal Express 18.26 J2013 -23 - SHIPPING 63543 06/12/2014 Fleet Services, Inc 3,672.39 MAINTENANCE - #154 63544 06/12/2014 FLOLOC Products International 810.00 PROF. SVCS - HIGHLAND & LAKEVI 63492 06/12/2014 FRANK R SOMMER 89.73 CUSTOMER REFUND 63545 06/12/2014 Fry's Electronics 403.77 IT HARDWARE 63546 06/12/2014 Graybar Electric Co 1,335.66 IT HARDWARE 63547 06/12/2014 Haaker Equipment Co. 1,233.36 MAINTENANCE - #154 & #168 63548 06/12/2014 Hall & Foreman, Inc 945.00 J2013 -04S & J2013 -15S - PROF. 63549 06/12/2014 HD Supply Waterworks, Ltd. 755.74 PVC PIPE, CAPS, COUPLERS 63551 06/12/2014 Infosend Inc. 10,331.37 DATA PROCESSING & POSTAGE 63552 06/12/2014 Innovyze 4,313.00 FLOATING UPGRADES 63553 06/12/2014 Jackson's Auto Supply - Napa 109.37 WATER PUMP AND OIL FILTERS 63554 06/12/2014 John Bogosian 739.63 TOOLS AND EQUIPMENT 63555 06/12/2014 John Decriscio 286.18 BOOT ALLOWANCE - REIMBURSEMENT 63556 06/12/2014 Kimball Midwest 445.18 HARDWARE 63557 06/12/2014 Koff & Associates, Inc 9,989.31 GM RECRUITMENT, INTERVIEWS ETC 63599 06/12/2014 Konica Minolta Business 242.07 BIZHUB C224 63504 06/12/2014 LIANG KONG 131.58 CUSTOMER REFUND 63558 06/12/2014 Liebert Cassidy Whitmore 2,627.50 PROF. SERVICES - 04/30/14 63513 06/12/2014 MARK CARROLL 908.30 CUSTOMER REFUND 63559 06/12/2014 Mc Fadden -Dale Hardware 823.78 HARDWARE SUPPLIES 63496 06/12/2014 MICHAEL ELLIS 27.03 CUSTOMER REFUND 63503 06/12/2014 MICHAEL HANNAH 112.57 CUSTOMER REFUND 63560 06/12/2014 Minuteman Press 486.00 BUSINESS CARDS 63561 06/12/2014 MISCO 817.56 A -1088 MOTOR ASSY 120V 63562 06/12/2014 Mobile Industrial Supply 5.18 .035 TIPS 63563 06/12/2014 Murcal, Inc. 1,006.56 MX5 -A MODULE - HIGHLAND #1 63564 06/12/2014 Muzak LLC 72.66 SERVICES JUNE 2014 63565 06/12/2014 MWH Americas, Inc. 159,482.10 J2010 -11 B - PROF SVCS 63566 06/12/2014 Nickey Kard Lock Inc 6,805.52 FUEL & CARD REPLACEMENT 63505 06/12/2014 NULEVEL PARTNERS 202.37 CUSTOMER REFUND 63567 06/12/2014 Office Solutions 341.92 OFFICE SUPPLIES 63568 06/12/2014 One Source Distributors, LLC 392.23 AB 802T -NX119 63500 06/12/2014 OPES INVESTMENTS INC 391.04 CUSTOMER REFUND 63572 06/12/2014 P.T.I. Sand & Gravel, Inc. 327.97 +30 FILL SAND 63569 06/12/2014 Powerstride Battery 190.34 BATTERY - #195 63570 06/12/2014 Praxair Distribution 424.98 PICK UP 2 EMPLY CYL'S 63571 06/12/2014 Prudential Group Insurance 3,492.28 INSURANCE- LIFE /ADD /LTD &STD 63573 06/12/2014 Quinn Power Systems Associates 2,626.41 MAINTENANCE - WELL 7 63584 06/12/2014 Rachel Padilla /Petty Cash 353.94 PETTY CASH 63489 05/29/2014 REBECCA ALLEN 8,185.94 CUSTOMER REFUND 63574 06/12/2014 Repipe California LP 17,115.00 CIPP LINING OF 8" VCP 63575 06/12/2014 Rick Walkemeyer 140.00 CERTIFICATE REIMBURSEMENT 63576 06/12/2014 Robert Kiley 20.00 DATA - REIMBURSEMENT 63493 06/12/2014 ROBERT W DAILEY 103.59 CUSTOMER REFUND 63511 06/12/2014 SANDEEP MALIK 15.36 CUSTOMER REFUND 63577 06/12/2014 Sanders Paving, Inc. 13,888.00 ASPHALT REPAIR 63578 06/12/2014 Security Solutions 1,537.06 YLWD IT ROOM READER ADD 63579 06/12/2014 Selman Chevrolet Company 24.65 SWITCH - #144 63494 06/12/2014 SHANNON KIRKLAND 100.28 CUSTOMER REFUND 63580 06/12/2014 Shred -It USA Inc 89.10 SHRED IT SERVICE 63581 06/12/2014 Source Graphics 1,851.25 TONER 63582 06/12/2014 Southern Calif Edison Co. 1,817.86 6115 & 6354 - MAY 2014 63583 06/12/2014 Southern Calif Gas Co. 20,917.68 VARIOUS LOCATIONS- MAY 2014 W052814 05/27/2014 Southern Calif Gas Co. 22,838.06 RICHFIELD - APRIL 2014 63585 06/12/2014 Stantec Consulting Services Inc. 18,111.00 J2009 -22 #21 -WELL 21 EQUIPPIN 63586 06/12/2014 Step Saver Inc 4,378.45 COURSE SALT 63587 06/12/2014 Steven Engineering 1,964.85 POWER SUPPLY & SURGE PROTECTOR 63588 06/12/2014 Sunstate Equipment Co 246.54 FORKLIFT RENTAL 63590 06/12/2014 Superior Water Technologies 472.00 ACID WASH - WELL 11 63589 06/12/2014 Support Product Services 12,137.98 CATALYTIC CONVERTER 63501 06/12/2014 TBU INC 1,000.00 CUSTOMER REFUND 63591 06/12/2014 TDI Refrigeration Air Conditioning Inc. 2,100.00 SVC ON SPLIT SYSTEM BLDG 3 63592 06/12/2014 Terminix Processing Center 185.00 PEST CONTROL 63593 06/12/2014 Time Warner Cable 1,114.62 BCF FIBER I -NET 63498 06/12/2014 TOLL BROTHERS 30.42 CUSTOMER REFUND 63594 06/12/2014 United Industries 249.96 PPE SUPPLIES 63595 06/12/2014 Universal Truck Body, Inc. 10,783.80 DUMP BED, TOOL BOX AND TARP 63507 06/12/2014 VALERIE NGUYEN 105.90 CUSTOMER REFUND 63495 06/12/2014 VALERIE TRAHANOVSKYY 500.00 CUSTOMER REFUND 63596 06/12/2014 Walters Wholesale Electric Co. 351.01 HOFF TFP61 COOLING FAN 63597 06/12/2014 Wesbay Water Company 20,580.00 120Z BOTTLE WATER 479,214.15 AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Dept: Prepared By: Kelly McCann, Senior Accountant ITEM NO. 7.4 Finance Subject: Unaudited Financial Statements for the Period Ending March 31, 2014. SUMMARY: Presented are the District's Unaudited Financial Statements for the Period Ending March 31, 2014. STAFF RECOMMENDATION: That the Board of Directors receive and file the Unaudited Financial Statements for the Period Ending March 31, 2014. COMMITTEE RECOMMENDATION: The Finance - Accounting Committee discussed this item at its meeting held May 20, 2014 and supports staff recommendation. DISCUSSION: For the period ending March 31, 2014, staff is presenting unaudited statements in the CAFR format. We have included the traditional budget to actual statements for the District as a whole, as well as the individual water and sewer funds, and the debt service coverage calculation. Water Operating Revenue, as presented, is 76.2% of annual budget, which is slightly higher than the historical trend of 71.4% through the third quarter of the fiscal year. Other Operating Revenue 81.3% of annual budget. Sewer Other Operating Revenue, as presented, is 76.4% of annual budget. With the issuance of the 2008 Certificates of Participation (COP's) and the Refunding Revenue Bonds, Series 2012A the District covenanted "...to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 110% of the Debit Service for such Fiscal Year." To confirm the covenant is upheld, a calculation is made quarterly and presented to the Finance - Accounting Committee and received and filed by the Board of Directors. Accordingly, the unaudited debt service ratio through March 2014 is shown in the calculation as 255 %. This shows strong financial health for the District as it pertains to the debt service ratio. STRATEGIC PLAN: FR 1 -F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: Name: FY 2014 3rd Qtr Consolidated Balance Sheet.xlsx 2014 3rd Qtr DS Calc.xlsx 3rd Qtr 2014 consolidated stmt.xlsx 3rd Qtr 2014 Water Stmt.xlsx 3rd Qtr 2014 Swr Stmt.xlsx Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 Description: FY 2014 3rd Qtr Consolidated Balance Sheet 2014 3rd Qtr Debt Service Calculation 2014 3rd Qtr Consolidated Statement 2014 3rd Qtr Water Statement 2014 3rd Qtr Sewer Statement Type: Backup Material Backup Material Backup Material Backup Material Backup Material YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS March 31, 2014 (With March 31, 2013 for comparison only) ASSETS March 2014 March 2013 CURRENT ASSETS: Cash and cash equivalents $ 12,350,939 $ 15,762,614 Investment 9,220,370 2,143,553 Accounts receivable - water and sewer services 2,616,634 2,756,727 Accounts receivable - property taxes - 102,192 Accrued interest receivable 18,332 8,095 Prepaid expenses & other deposits 253,942 1,084,105 Inventory 271,830 236,459 TOTAL CURRENT ASSETS 24,732,047 22,093,744 NONCURRENT ASSETS: Bond issuance costs 491,972 1,417,030 Other post - employment benefit (OPEB) asset 130,153 176,295 Capital assets: Non - depreciable 5,919,334 14,315,667 Depreciable, net of accumulated depreciation 192,567,703 186,415,180 TOTAL NONCURRENT ASSETS 199,109,162 202,324,172 TOTAL ASSETS 223,841,209 224,417,916 LIABILITIES CURRENT LIABILITIES: Accounts payable 4,468,957 2,177,655 Accrued expenses 791,603 651,514 Accrued interest payable 865,475 878,596 Certificates of Participation - current portion 735,000 705,000 Refunding Revenue Bond - current portion 275,000 260,000 Compensated absences 249,021 236,257 Customer and construction deposits 399,470 277,903 Deferred revenue 397,922 414,197 TOTAL CURRENT LIABILITIES 8,182,448 5,601,122 LONG -TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue 13,586,551 13,856,701 Compensated absences 788,568 748,148 Refunding Revenue Bond 7,795,000 8,070,000 Certificate of Participation 32,204,833 33,008,358 TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) 54,374,952 55,683,207 TOTAL LIABILITIES 62,557,400 61,284,329 NET ASSETS: $ 161,283,809 $ 163,133,587 YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the period ended March 31, 2014 (With fiscal year ended March 2013 for comparison only) March 2014 March 2013 OPERATING REVENUES: Water sales $ 20,759,619 $ 19,018,272 Sewer revenues 1,290,650 1,291,195 Other operating revenues 775,542 555,881 TOTAL OPERATING REVENUES 22,825,811 20,865,348 OPERATING EXPENSES Variable water costs 10,203,968 9,770,544 Personnel services 5,648,397 5,517,677 Supplies and services 2,793,141 2,949,119 Depreciation and amortization 5,451,625 5,087,132 TOTAL OPERATING EXPENSES 24,097,131 23,324,472 OPERATING INCOME /(LOSS) (1,271,320) (2,459,124) NONOPERATING REVENUES (EXPENSES): Property taxes 861,289 829,722 Investment income 94,527 93,823 Interest expense (1,301,241) (1,344,189) Other nonoperating revenues 579,439 655,021 Other nonoperating expenses (20,223) (34,709) TOTAL NONOPERATING REVENUES /EXPENSES 213,791 199,668 NET INCOME /(LOSS) BEFORE CAPITAL CONTRIBUTIONS & EXTRAORDINARY ITEM(S) (1,057,529) (2,259,456) EXTRAORDINARY ITEM(S) - CAPITAL CONTRIBUTIONS 625,028 350,819 CHANGES IN NET ASSETS (432,501) (1,908,637) NET ASSETS - BEGINNING OF YEAR 161,716,310 165,042,224 NET ASSETS - FOR PERIOD END MARCH 31, 2014 $ 161,283,809 $ 163,133,587 Yorba Linda Water District Water Fund For The Period Ending March 31, 2014 Revenue (Operating): Water Sales Other Operating Revenue Total Operating Revenue Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services Sub -Total Depreciation & Amortization Total Operating Expenses Operating Income(Loss) NONOPERATING REVENUES (EXPENSES): Interest Property Tax Other Non - Operating Revenue Interest Expense Other Expense Total Non - Operating Expenses Net Income (Loss) Before Capital Contributions Capital Contributions Net Change in Assets DEBT SERVICE RATIO CALCULATION: Net Revenues Debt Service a� YTD Included in Actual Debt Service FY 2014 Calculation $ 20,759,620 $ 20,759,620 700,366 700,366 21,459,986 21,459,986 10,203,968 10,203,968 5,005,510 5,005,510 2,525,420 2,525,420 4,459,326 - 22,194,224 17,734,898 (734,238) 3,725,088 88,469 88,469 861,289 861,289 547,215 547,215 (1,301,241) (20,223) (20,223) 175,509 1,476,750 (558,729) 5,201,838 517,675 - ($41,054) 5,201,838 $ 5,201,838 $ 2,038,807 255% Yorba Linda Water District Summary Financial Report Water & Sewer Funds For The Period Ending March 31, 2014 Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape /Irrigation) Water Revenue (Service Charge) Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non- Operating): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue: Total Revenue Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services Total Operating Expenses Expenses (Non- Operating): Interest on Long Term Debt Other Expense Total Non - Operating Expenses: Total Expenses Net Income (Loss) Before Capital Contributions Capital Contributions Net Income (Loss) Before Depreciation Depreciation & Amortization Total Net Income (Loss) Annual YTD June YTD YTD YTD Budget BudgetActual Actual Under(Over) % of FY 2014 FY 201 NY 201fY 2014 Annual Budget Budget $16,217,590 $12,163,193 $12,587,045 $3,630,545 77.61% 2,020,223 1,515,167 1,501,320 518,903 74.31% 4,794,156 3,595,617 3,430,331 1,363,825 71.55% 4,468,716 3,351,537 3,240,924 1,227,792 72.52% 1,550,530 1,162,898 1,165,265 385,265 75.15% 200,797 150,598 125,385 75,412 62.44% 717,749 538,312 775,542 (57,793) 108.05% 29,969,761 22,477,321 22,825,812 7,143,949 76.16% 87,000 1,264,672 509,150 65,250 948,504 381,863 94,527 861,289 579,439 (7,527) 403,383 (70,289) 108.65% 68.10% 113.81% 1,860,822 1,395,617 1,535,255 325,567 82.50% 31,830,583 23,872,937 24,361,067 7,469,516 76.53% 13,767,658 7,904,873 4,225,654 10,325,744 5,928,655 3,169,241 10,203,968 5,648,398 2,793,141 3,563,690 2,256,475 1,432,518 74.12% 71.45% 66.10% 25,898,185 1,815,317 77,400 19,423,639 1,361,488 58,050 18,645,507 1,301,241 20,223 7,252,683 514,076 57,177 72.00% 71.68% 26.13% 1,892,717 1,419,538 1,321,464 571,253 69.82% 27,790,902 20,843,177 19,966,971 7,823,936 71.85% 4,039,681 3,029,761 4,394,096 (354,420) 108.77% - - 625,028 625,028 0.00% 4,039,681 3,029,761 5,019,124 270,608 124.25% 6,897,941 5,173,456 5,451,625 1,446,311 79.03% ($2,858,260) ($2,143,695) ($432,501) ($2,425,759) 15.13% Yorba Linda Water District Water Fund For The Period Ending March 31, 2014 Annual YTD YTD YTD YTD Budget Budget Actual Under(Over) % of Annual FY 2014 FY 2014 FY 2014 Annual Budget Budget Revenue (Operating) Water Revenue (Residential) $16,217,590 $12,163,193 $12,587,045 3,630,545 77.61% Water Revenue (Commercial & Fire Det.) 2,020,223 1,515,167 1,501,320 518,903 74.31% Water Revenue (Landscape /Irrigation) 4,794,156 3,595,617 3,430,331 1,363,825 71.55% Water Revenue (Service Charge) 4,468,716 3,351,537 3,240,924 1,227,792 72.52% Other Operating Revenue 681,074 510,806 700,366 (19,292) 102.83% Total Operating Revenue: 28,181,759 21,136,319 21,459,986 6,721,773 76.15% Revenue (Non- Operating): 278,293 208,720 258,677 19,616 92.95% Interest 75,000 56,250 88,469 (13,469) 117.96% Property Tax 1,264,672 948,504 861,289 403,383 68.10% Other Non- Operating Revenue 501,200 375,900 547,215 (46,015) 109.18% Total Non - Operating Revenue: 1,840,872 1,380,654 1,496,973 343,899 81.32% Total Revenue 42,920 32,190 24,027 18,893 55.98% 30,022,631 22,516,973 22,956,959 7,065,672 76.47% 47.62% Training 64,403 48,302 20,292 Expenses (Operating): 31.51% Travel & Conferences 48,389 36,292 20,938 Variable Water Costs (G.W., Import & Power) 13,767,658 10,325,744 10,203,968 3,563,690 74.12% Salary Related Expenses 6,987,204 5,240,403 5,005,510 1,981,694 74.80% Supplies & Services: Communications 283,371 212,528 129,572 153,799 45.73% Contractual Services 504,089 378,067 382,581 121,508 75.90% Data Processing 158,779 119,084 111,677 47,102 70.33% Dues & Memberships 67,021 50,266 59,943 7,078 89.44% Fees & Permits 152,224 114,168 108,894 43,330 71.54% Insurance 278,293 208,720 258,677 19,616 92.95% Materials 568,676 426,507 503,013 65,663 88.45% District Activities, Emp Recognition 23,390 17,543 10,518 12,872 44.97% Maintenance 357,243 267,932 188,933 168,310 52.89% Non - Capital Equipment 121,534 91,151 76,877 44,657 63.26% Office Expense 42,920 32,190 24,027 18,893 55.98% Professional Services 747,785 560,839 356,099 391,686 47.62% Training 64,403 48,302 20,292 44,111 31.51% Travel & Conferences 48,389 36,292 20,938 27,451 43.27% Uncollectible Accounts 23,250 17,438 18,970 4,280 81.59% Utilities 83,700 62,775 21,214 62,486 25.35% Vehicle Equipment 321,250 240,938 233,195 88,055 72.59% Supplies & Services Sub -Total 3,846,317 2,884,738 2,525,420 1,320,897 65.66% Total Operating Expenses 24,601,179 18,450,884 17,734,898 6,866,281 72.09% Expenses (Non- Operating): Interest on Long Term Debt 1,815,317 1,361,488 1,301,241 514,076 71.68% Other Expense 71,400 53,550 20,223 51,177 28.32% Total Non - Operating Expenses: 1,886,717 1,415,038 1,321,464 565,253 70.04% Total Expenses 26,487,896 19,865,922 19,056,362 7,431,534 71.94% Net Income (Loss) Before Capital Contributions 3,534,735 2,651,051 3,900,597 (365,862) 110.35% Capital Contributions - - 517,675 517,675 0.00% Net Income (Loss) Before Depreciation 3,534,735 2,651,051 4,418,272 151,813 125.00% Depreciation & Amortization 5,598,638 4,198,979 4,459,326 1,139,312 79.65% Total Net Income (Loss) ($2,063,903) ($1,547,927) ($41,054) ($2,022,849) 1.996% Capital - Direct Labor (221,203) Yorba Linda Water District Sewer Fund For The Period Ending March 31, 2014 Annual YTD YTD YTD YTD Budget Budget Actual Under(Over) % of FY 2014 FY 2014 FY 2014 Annual Budget Annual Budget Revenue (Operating) Sewer Charge Revenue $1,550,530 $1,162,898 $1,165,265 $385,265 75.15% Locke Ranch Assessments 200,797 150,598 125,385 75,412 62.44% Other Operating Revenue 36,675 27,506 75,176 (38,501) 204.98% Total Operating Revenue: 1,788,002 1,341,002 1,365,826 422,176 76.39% Revenue (Non- Operating): 11,951 8,963 8,406 3,545 70.34% Interest 12,000 9,000 6,058 5,942 50.48% Other Non - Operating Revenue 7,950 5,963 32,224 (24,274) 405.33% Total Non - Operating Revenue: 19,950 14,963 38,282 (18,332) 191.89% Total Revenue 1,807,952 1,355,964 1,404,108 403,844 77.66% Expenses (Operating): Salary Related Expenses 917,669 688,252 642,887 274,782 70.62% Supplies & Services: 6,000 4,500 - 6,000 0.00% Communications 21,829 16,372 9,510 12,319 43.57% Contractual Services 38,751 29,063 29,933 8,818 77.24% Data Processing 11,951 8,963 8,406 3,545 70.34% Dues & Memberships 5,314 3,986 4,537 777 85.38% Fees & Permits 15,141 11,356 10,663 4,478 70.42% Insurance 20,947 15,710 19,470 1,477 92.95% Materials 19,099 14,324 34,718 (15,619) 181.78% District Activities, Emp Recognition 1,761 1,321 785 976 44.58% Maintenance 121,908 91,431 58,567 63,341 48.04% Non - Capital Equipment 16,417 12,313 16,528 (111) 100.68% Office Expense 3,231 2,423 6,052 (2,821) 187.31% Professional Services 37,425 28,069 19,817 17,608 52.95% Training 6,757 5,068 5,137 1,620 76.02% Travel & Conferences 4,062 3,047 1,529 2,533 37.64% Uncollectible Accounts 1,750 1,313 2,088 (338) 119.31% Utilities 7,100 5,325 2,235 4,865 31.48% Vehicle Equipment 45,899 34,424 37,746 8,153 82.24% Supplies & Services Sub -Total 379,342 284,507 267,721 111,621 70.58% Total Operating Expenses 1,297,011 972,758 910,608 386,403 70.21% Expenses (Non- Operating) Other Expense 6,000 4,500 - 6,000 0.00% Total Non - Operating Expenses: 6,000 4,500 - 6,000 0.00% Total Expenses 1,303,011 977,258 910,608 392,403 69.88% Net Income (Loss) Before Capital Contributions 504,941 378,706 493,500 11,441 97.73% Capital Contributions - - 107,354 107,354 0.00% Net Income (Loss) Before Depreciation 504,941 378,706 600,854 118,795 118.99% Depreciation & Amortization 1,299,298 974,474 992,299 306,999 76.37% Total Net Income (Loss) (794,357) (595,768) (391,445) (402,912) 49.28% Capital - Direct Labor (5,141) AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: Steve Conklin, Acting General Manager Prepared By: Alex Thomas, Water Quality Engineer Budgeted: Total Budget: Cost Estimate: Funding Source Job No: Dept: Reviewed by Legal: ITEM NO. 7.5 Yes $1,000,000 $863,345 All Water Funds 2009 -22 Engineering N/A CEQA Compliance: Exempt Subject: Progress Payment No. 2 for Well 21 Drilling Contract SUMMARY: Work is proceeding as planned on Well 21 drilling contract. The project involves drilling an 18 -in diameter, high capacity drinking water well capable of producing approximately 3,000 gpm. Submitted for Board approval is Progress Payment No.2 STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 2 in the net amount of $366,903.30 to Bakersfield Well and Pump, Co. for Drilling of Well No. 21, Job No. 2009 -22. DISCUSSION: In accordance with the contract documents, Bakersfield Well and Pump, Co. submitted a request for Progress Payment No. 2, in the net amount of $366,903.30 for completed work through April 30, 2014. During this period, the contractor installed 530 feet of 18 inch casing, 360 feet of a gravel pack, 180 feet of cement grout seal, and started developing the well by air pumping with the drill rig. Work is expected to be fully complete in the early part of June 2014. The status of the construction contract with Bakersfield Well and Pump, Co. is as follows: • The current contract amount is $863,345.00 and 98 calendar days starting on December 16, 2013. • If approved, Progress Payment No. 2 is $386,214.00 less a 5% retention of $19,310.70 for a net payment of $366,903.30 (42% of the total contract amount). Staff reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 2 is attached for your reference. STRATEGIC PLAN: SR 3 -B: Continue Planning for Long Term Capital Improvements and Replacements into the future PRIOR RELEVANT BOARD ACTION(S): • On December 20, 2012, the Board of Directors approved a Professional Services Agreement with CDM Smith in the amount of $117,740 to provide hydrogeologic services to evaluate two potential well sites and provide well drilling design, specifications and inspection services. • On December 20, 2012, the Board of Directors authorized approval and execution of the 50- year Lease Agreement between Orange County Water District and Yorba Linda Water District for the Well 21 site. • On October 10, 2013, the Board of Directors approved Amendment No. 1 in the amount of $10,620 to CDM Smith for Hydrologic Services to provide full -time oversight monitoring during the drilling of Well No. 21. • On October 10, 2013, the Board of Directors authorized execution of a Construction Contract with Bakersfield Well and Pump, Co. in the amount of $863,345 for Drilling of Well No. 21. • On April 24, 2014, the Board of Directors approved Progress Payment No. 1 in the amount of $181, 646.65 to Bakersfield Well and Pump Co. for drilling Well No. 21. ATTACHMENTS: Name: Description: Type: Progress Payment 2 Bakersfield Well and Pumo.pdf Progress Payment No. 2 Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 YORBA LINDA WATER DISTRICT PROGRESS PAYMENT REPORT PROJECT Well 21 Drilling PROGRESS PAY REQUEST NO. 002 LOCATION Anaheim, CA PROJECT NO. 200922 PAGE 1 OF 1 PAGES CONTRACTOR Bakersfield Well & Pump Co. DATE May 16, 2014 19 CALENDAR ORIGINAL CONTRACT AMOUNT: $ 8639346.00 AUTHORIZED CHANGE ORDERS: $ - PAY ESTIMATE FOR PERIOD March 319 2014 TO VALUE OF WORK COMPLETED $ 191,207.01 CHANGE ORDER WORK COMPLETED $ _ TOTAL VALUE OF WORK COMPLETED Is 191,207.01 ,LESS RETENTION 5% LESS OTHER DEDUCTIONS Electronic Wire Fees NET EARNED TO DATE LESS AMOUNT PREVIOUSLY PAID BALANCE DUE THIS ESTIMATE NOTICE TO PROCEED COMPLETION TIME APPROVED TIME EXTENSIONS TOTAL CONTRACT TIME TIME EXPENDED TO DATE TIME REMAINING REQUESTED BY: RECOMMENDED:_ December 16, 2013 98 CALENDAR DAYS 0 CALENDAR DAYS 98 CALENDAR DAYS 88 CALENDAR DAYS 19 CALENDAR DAYS DATE: :,,)o J ' q DATE: QZ /20 l Z n(%4 APPROVED BY: DATE: Steve Conklin, Acting General Manager, YLWD To: Yorba Linda Water District 1717 E. Miraloma Avenue Placentia, CA 92870 Attn: Derek Nguyen Ph: (714) 7013115 Job Description: Well #21 Bakersfield Well & Pump Co. 7212 Fruitvale Avenue Bakersfield, CA 93308 INVOICE Progress Billing #2 Billing Date 4 -30-14 JOB # 13716 PO # 2009 -22 M:I✓0bs120131f37f6 Yorba Linea WD -Dn1l New 700'Well @ Well #21(Aneaelm)Vw 13716 f0- 17,13.xAw1nva2 Rev. SG Pape f or? QtY This Qty to Item # Bid Item Description Cry Units Unit Bid Price Period Period Total Date -Total to Date Mobilization to site". (Note: * The total price for bid item 1 shall not 1 exceed 10 percent of the total bid rice. 1 LS 65,000.00 0 $ 1 $ 6600000 2 Demobilize from the site including site cleanup. 1 LS 35,00-0.00 $ $ _ 3 Standby time as directed by the Engineer. 24 HRS 150.00 $ $ _ 4 Install soundproofing, if required. 300 LF 0.00 $ $ - Fumish, Install and cement 38 -Inch diameter by 31 inch thick steel conductor casing in 48 -Inch diameter hole from ground surface to a depth of 5 apiprommateiv 50 feet. 50 LF 375.00 0 1 $ 50 $ 18 750.00 Drill by direct by reverse circulation method a maximum 184inch diameter pilot hole from 50 to 6 720 feet. 670 LF 100.00 0 $ - 670 $ 67,000.00 Conduct geophysical survey of the pilot hole including spontaneous potential, single point, 16- inch normal, 64 -Inch normal, sonic, guard, gamma 7 ray, and caliper log. 1 LS -4.457,DDI 0 - 1 $ 4 457.00 Conduct aquifer Isolation zone testing, including temporary casings, airlifting and submersible pump to obtain water quality samples, including costs of water quality and NPDES sample analyses. Per 6 6 Zone 12 000.00 0 $ - 3 $ 3600000 9 Furnish plug In bottom of pilot hole, If needed. 100 LF 80.00 18 $ 1,080.00 18 $ 1,080.00 Ream by reverse circulation method, a 36 -inch 10 diameter borehole. 150 LF 100.00 180 $ 160D0.00 160 $ 16,000.00 Ream by reverse circulation method, a 284nch 11 diameter borehole. 520 LF 100.00 330 33,000.00 330 $ 33 000.00 12 Conduct caliper log. - 1 Ls 1,700.00 1 $ 1,700.00 - 1 $ 1,700.00 Furnish and Install 184nch ID by 318 -inch thick, type 304L stainless steel rasing in 38-inch diameter. 13 210 'LF 820.00 210 $ 130,200.00 210 $ 130,200.00 Furnish and install 18 -inch ID by 5116 -Inch thick 14 ltvve 304L stainless steel blank casing. 345 LF 521.00 50 26,050.00 50 $ 26 050.00 Furnish and Install 18 -Inch ID, type 304L, stainless steel, 0.06 -Inch slot, continuous wire wrap well 15 screen. 155 LF 1 262.00 270 $ 70 740.00 270 $ 70,740.00 Furnish and install 190 feet type 304L stainless 16 steal, gravel feed tube with threaded cap. 192 LF 101.00 192 $ 19,392.00 192 $ 19,392.00 . Furnish and install4-inch ID, schedule 10, type 304L stainless steel camera /sounding tube with 17 threaded Gap. 201 LF 101,00 202 $ 20 402.00 202 $ 20,402.00 Furnish and Install 6 x17 gradation gravel pack in 18 annular. I 540 LF 50.00 360 $ 18 000.00 360 $ 18 000.00 Furnish and Install cement grout seal in the annular 19 Spam. 180 LF 100.00 189 18 000.00 180 $ 18 000,00 Conduct straightness and plumbness tests of the 20 well. 1 LS 2,500.00 $ Furnish and Install 10 -Inch diameter discharge pipe. 21 1 LS 25,000.00 $ Conduct well development by mechanical procedures including swabbing and aidift pumping _ 22 with drill rig). 96 HRS 300.00 105.5 $ 31,650.00 105.5 $ 31,650.00 Furnish, install and demobilize pump equipment for 23 well development and test pumping. 1 LS 15 000.00 $ $ _ Develop well with phosphate free dispersant (PDF) 24 and double swab tool if necessary. 24 HRS 300.00 $ _ $ M:I✓0bs120131f37f6 Yorba Linea WD -Dn1l New 700'Well @ Well #21(Aneaelm)Vw 13716 f0- 17,13.xAw1nva2 Rev. SG Pape f or? Bakersfield Well $ Pump Co. 7212 Fruitvale Avenue Bakersfield, CA 93308 Prepared Bv: Signed Approve TOTALS $ 386,214.00 $ 577,421.00 Total To Date Amount Earned- $ nh Amount Retained @ 5% $ (28,871.05) Item # Bid Item Dear; tion D Units Unit Bid Price This Period Period Total City to Date Total to Date Conduct well development by pumping procedures. 25 48 HRS 250.00 $ $ 26 lCanduct step a awdown test by pumping. 8 HRS Conduct constant discharge aquifer test by 250,00 $ $ - 27 _ um in-. 24 HRS 250.00 $ $ Conduct flow meter survey during, constant 28 discha a test. 1 LS 3,766.00 $ $ 29 Conduct video camera survey. 1 30 Disinfect well. LS t 200.00 $ $ 1 1 Ls 1 1,000.00 $ Prepared Bv: Signed Approve TOTALS $ 386,214.00 $ 577,421.00 M:Vobs @013113716 Ywba lirroe WD -Odle New 7oo'W&# 0 WOW (Avah&jM)vnV 137161417- f3alsxfnv #2 %, SG Page 2 oft Total To Date Amount Earned- $ 577,421.00 Amount Retained @ 5% $ (28,871.05) Previous Billing(s) $ 081,646.65) Total Due $ 366,903.30 M:Vobs @013113716 Ywba lirroe WD -Odle New 7oo'W&# 0 WOW (Avah&jM)vnV 137161417- f3alsxfnv #2 %, SG Page 2 oft AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: Steve Conklin, Acting General Manager Prepared By: Alex Thomas, Water Quality Engineer Budgeted: Total Budget: Cost Estimate: Funding Source Job No: Dept: Reviewed by Legal: ITEM NO. 7.6 Yes $1,000,000 $863,345 All Water Funds 2009 -22 Engineering N/A CEQA Compliance: Exempt Subject: No -Cost Change Order No. 1 for Well 21 Drilling Contract SUMMARY: Work has been completed for the Well 21 drilling contract. The project involved drilling an 18 -inch diameter, high capacity drinking water well capable of producing approximately 3,000 gpm. Submitted for Board approval is Change Order No. 1. STAFF RECOMMENDATION: That the Board of Directors approve Change Order No. 1 in the amount of $0.00 and 70 additional calendar days to Bakersfield Well and Pump Co., for construction of the Well 21 Drilling Project. Job No. 2009 -22. COMMITTEE RECOMMENDATION: The Planning- Engineering- Operations Committee considered this item at its meeting held on June 5, 2014, and supports the staff recommendation. DISCUSSION: In accordance with the contract documents, Bakersfield Well and Pump Co. submitted the proposed Change Order No. 1 due to unforeseen events encountered during the course of construction. A copy of Change Order No. 1 is attached for your review and details are provided below. Bakersfield Well and Pump Co. is requesting a 70 -day no -cost time extension due to an unforeseen delay due to the drill rig being tied up at another job. Additionally, various other delays occurred from issues during the initial and zone test fluids discharge, high turbidity water samples and slow laboratory analysis. The status of the construction contract with Bakersfield Well and Pump, Co. is as follows: 9 The current contract amount is $863,345.00 and 98 calendar days starting on December 16, 2013. If approved, Change Order No. 1 adds $0.00 and 70 additional calendar days. If approved, the revised construction contract is $863,345.00 (0.0% changes from the original contract amount) and 168 calendar days. The construction was complete on June 2, 2014. Staff and CDM Smith, the District's consultant engineer, discussed the change order request and recommend approval. STRATEGIC PLAN: SR 3 -B: Continue Planning for Long Term Capital Improvements and Replacements into the future PRIOR RELEVANT BOARD ACTION(S): • On December 20, 2012, the Board of Directors approved a Professional Services Agreement with CDM Smith in the amount of $117,740 to provide hydrogeologic services to evaluate two potential well sites and provide well drilling design, specifications and inspection services. • On December 20, 2012, the Board of Directors authorized approval and execution of the 50- year Lease Agreement between Orange County Water District and Yorba Linda Water District for the Well 21 site. • On October 10, 2013, the Board of Directors approved Amendment No. 1 in the amount of $10,620 to CDM Smith for Hydrologic Services to provide full -time oversight monitoring during the drilling of Well No. 21. • On October 10, 2013, the Board of Directors authorized execution of a Construction Contract with Bakersfield Well and Pump, Co. in the amount of $863,345 for Drilling of Well No. 21. • On April 24, 2014, the Board of Directors approved Progress Payment No. 1 in the amount of $181, 646.65 to Bakersfield Well and Pump Co. for drilling Well No. 21. ATTACHMENTS: Name: BWPump Change Order No 1 with Letter.pdf Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 Description: Change Order 1 Type: Backup Material YORBA LINDA WATER DISTRICT CHANGE ORDER NO. 1 CONTRACT NAME: CONTRACTOR: PROJECT NUMBER OWNER: Well 21 Drilling Project Bakersfield Well and Pu 2009 -22 Yorba Linda Water District Co. DATE 6/3/2014 CONTRACT AMT THIS CHANGE: REVISED CONTRACT AMT Page 1 of 1 $8639345,00 DAYS: 98 $0.00 DAYS: 70 (0.00 %) $863,345.00 DAYS: 168 This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Change Order items for a lump sum price agreed upon between the Contractor and Yorba Linda Water District otherwise referred to as Owner. DESCRIPTION OF CHANGES +INCREASE CONTRACT /OR TIME +EXTENSION — DECREASE IN CONTRACT /OR- REDUCTION AMOUNT ($) (DAYS) 1) Additional days for unforeseen delays due to the drill rig being tied up at the Golden State Job, initial discharge, zone test fluids discharge, high turbidity water samples and slow laboratory time issues. $0.00 70 NET CHANGE $0.00 70 REVISED CONTRACT AMOUNT AND TIME $863,345.00 168 The amount of the contract will be increased <deEreased} by the sum of $0.00 and the contract time shall be increased <desreaseds by 70 calendar days. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order. The Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the Change Order items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Change Order shall be effective when approved by the Owner. This Change Order constitutes full, final, and complete compensation to the Contractor for all costs, expenses, overhead, profit, and any damages of every kind that the Contractor may incur in connection with the above referenced changes in the work, including any impact on the referenced work of any other work under the contract, any changes in the sequences of any work, any delay to any work, any disruption of any work, any rescheduling of any work, and any other effect on any of the work under this contract. By the execution of the Change Order, the Contractor accepts the contract price change and the contract completion date change, if any, and expressly waives any claims for any additional compensation, damages or time extensions, in connection with the above - referenced changes. A RECOMMENDED: /ENGINEER OR DATE: > > ?l CONSULTANT Alex uglity ACCEPTED: APPROVED: tShn C. Zi' Vi esident/Gel ersfield Well , YLWD Pump Co. Steve Conklin Acting General Manager, YLWD /OWNER DATE: DATE: June 3, 2014 BAKERSFIELD WELL & PUMP CO. 7212 Frudvale Ave. • Bakersfield, GA 93308 * (661) 393 -9661 FAX (661) 393 -9647 May 30, 2014 Yorba Linda Water Disrict 1717 E. Miraloma Avenue Placentia, Ca. 92870 -6785 Attn.: Derek Nguyen Re: Construction of YLWD — Well 21 Contract Extension Bakersfield Well & Pump Company is requesting a contract extension of 70 calendar days based on delayed mobilization date and subsequent fluid discharge and lab delays. This extension request is based on the revised contract completion date of June 2, 2014, 70 days after the original contract completion date of March 24, 2014. With the notice to proceed date of December 16, 2013 and the contract completion time of 98 calendar days, June 2, 2014 will be 168 calendar days. The project was delayed from the rig being tied up at Golden State Job, also initial discharge, zone test fluids discharge, high turbidity water samples and slow laboratory time issues contributed to these unforeseen delays. Feel free to call me if you should have any questions or comments regarding this time extension letter. Thank you for your consideration in this matter. C: (Documents and Settings jzimmerer1ocal Settings l Temporary Internet FileslConten t.Outlookl0G6OU90dflContract Extension request letter 5 -30- MRION AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: Steve Conklin, Acting General Manager Prepared By: Anthony Manzano, Senior Project Manager Budgeted: Total Budget: Cost Estimate: Funding Source Account No: Job No: Dept: Reviewed by Legal: CEQA Compliance: ITEM NO. 7.7 Yes $350,000.00 $345,780.00 All Water Funds 101 -2700 J2012 -13 Engineering Yes Exempt Subject: Construction Contract for the YLHS Park Pipeline Relocation Project SUMMARY: On May 14, 2014, bids were received from twelve contractors for construction of YLHS Park Pipeline Relocation Project. Following review of the bids, staff recommends award to the low - bidder, Vido Samarzich, Inc. for $345,780. STAFF RECOMMENDATION: That the Board of Directors award the Construction Contract for the YLHS Park Pipeline Relocation Project to Vido Samarzich, Inc. for $345,780, Job No. 2012 -13. COMMITTEE RECOMMENDATION: The Planning- Engineering- Operations Committee discussed this matter at its June 5, 2014 meeting and supports staff's recommendation. DISCUSSION: 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. See attached map. The BCF pipeline will be unable to support the additional fill, and must be replaced with a new line with approximately 5 -feet of cover. Per the Pre - Annexation Agreement with PYLUSD, the District is responsible for design and construction costs for replacing approximately 520 lineal feet of the BCF pipeline. To meet PYLUSD's previous construction schedule, District staff executed a Professional Services Agreement with a consultant, Albert A. Webb Associates, to complete design drawings by the end of 2012. Late 2013, PYLUSD stated that the District is required to complete the BCF relocation work independent from their park work. Consequently, District staff completed specifications in -house and solicited bids in early 2014 after the PYLUSD established a construction schedule. On May 14, 2014, sealed bids were received from twelve contractors, as shown below. The bid tabulation and bid documents from the low bidder, Vido Samarzich, Inc., were reviewed and confirmed by District staff and found to be responsive and fully in order. Accordingly, staff recommends award to Vido Samarzich, Inc. NO. COMPANY BID 1 Vido Samarzich, Inc. $ 345,780.00 2 T.E. Roberts, Inc. $ 358,560.00 3 TBU, Inc. $ 362,640.00 4 Paulus Engineering, Inc. $ 389,700.00 5 Cedro Construction $ 393,692.00 6 J.A. Salazar Construction & Supply $ 430,735.00 7 VCI Construction, Inc. $ 436,500.00 8 Kana Pipeline, Inc. $ 444,000.00 9 GRFCO, Inc. $ 467,000.00 10 GCI Construction $ 477,500.00 11 Mike Bubalo Construction $ 569,000.00 12 Atlas- Allied, Inc. $ 702,000.00 STRATEGIC PLAN: SR 3 -A: Complete Implementation of Five Year Capital Improvement Plan from FY 2011 -2015 with adopted amendments ATTACHMENTS: Name: YLHS PARK MAP.pdf Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 Description: YLHS Park & BCF Relocation Map Type: Backup Material i[iiii vi O PROPOSED YORBA LINDA HIGH SCHOOLPARK LOCATION MAP KP-MED. 36" WATER LINE 39" WATER LINE DEL REY c 0 0 - - -- - ------ - - - - -- -- - -- PROPOSED. 36" WATER LINE EX. 39" WATER LINE AVENIDA DEL REY F Im NO SCALE AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: John DeCriscio, Operations Manager Prepared By: Harold Hulbert, Operations Assistant Budgeted: Total Budget: Cost Estimate: Funding Source Account No: Dept: Reviewed by Legal CEQA Compliance: Subject: Awarding of Uniform - Supply Contract SUMMARY: ITEM NO. 7.8 Yes $30,000 $30,000 All Funds 1- 5010- 0600 -50 Operations No N/A In fiscal year 2009/2010 the District awarded a one -year with three annual - renewal options uniform - supply contract to Aramark Uniform Company. Last year 2012/2013 the District gave the last one - year extension on the contract. This year District staff solicited quotes from four uniform companies for a new uniform - supply contract. STAFF RECOMMENDATION: That the Board of Directors authorize the Acting General Manager to enter into a Uniform Supplier Contract with Aramark. The term of the contract will be 36 months with service starting on July 1, 2014 and ending on June 30, 2017, with a total estimated contract cost of $30,000. COMMITTEE RECOMMENDATION: The PEO Committee discussed this item at its meeting held June 5, 2014 and supports staff's recommendation. DISCUSSION: Staff contacted several uniform suppliers, including those that had submitted proposals during the 2009 contract bid. Four vendors responded, including the current contractor. After meeting with each vendor and discussing the District's needs, each vendor was provided a Specification for Uniform needs. District staff evaluated its needs and requested a price based on weekly charges including all service fees. Staff also asked for cost related to replacement for damaged uniforms to use as a comparison to all vendors, but the weekly charge was the main factor in determining who would be recommended as the new supplier of uniforms. Three of the four vendors expressed interest in securing a contract and provided quotes. 1. Aramark: $185.06 per week = $9623.12 per year. 2. Prudential Overall Supply: $224.78 per week = $11,688.56 per year. 3. Unifirst Corporation: $238.38 per week = 12,395.76 per year. When reviewing the District needs, staff determined that a simple 3 -year contract would be acceptable, with no renewal options. Furthermore, District staff reviewed the estimated cost of the contract and because it is expected to be around $30,000 over the three years, this contract would not require a competitive bid, as per District Resolution 13 -03, Section 1. The specification did include the option for the vendor to request once per year a price increase on the weekly total charge based on the Orange Country CPI, which will be provided by the District at the time of the request from the vendor. District staff is estimating that the three -year cost of the contract would be in the range of $30,000 which would include small additional charges related to damages outside the scope of the contract and or the addition of new employees and their set -up charges. This price does not include the CPI cost increase, which is estimated to be no more than 1 -2% per year, based on the last several years of the OC CPI. Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 MB /RC 5 -0 AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: John DeCriscio, Operations Manager Prepared By: Harold Hulbert, Operations Assistant Subject: Renewal of Janitorial Contract SUMMARY: Budgeted: Total Budget: Cost Estimate: Funding Source Account No: Dept: Reviewed by Legal CEQA Compliance: ITEM NO. 7.9 Yes $65,000 $63,147.60 All Water Funds 1- 5060 - 0600 -35 Operations N/A N/A On April 11, 2013 the Board of Directors approved the change in Janitorial service to SC Primesource for a 14 -month initial contract with three (3) annual renewal options. The current contract runs from May 1, 2013 to June 30, 2014. SC Primesource is requesting to renew the contract for the next fiscal year. SC Primesource has provided quality services to the District and staff supports the request for a 12 -month renewal. STAFF RECOMMENDATION: That the Board of Directors authorize the Acting General Manager to renew the Janitorial Service Contract with SC PrimeSource, Inc. The term of the contract would be 12 months with service starting on July 1, 2014 and ending on June 30, 2015, with a total estimated 12 -month contract cost of $63,147.60. COMMITTEE RECOMMENDATION: The PEO Committee discussed this item at its meeting held June 5, 2014 and supports staff's recommendation. DISCUSSION: The District's Maintenance and Supplier agreements include options for renewing the contracts without the District having to seek new proposals. Each contract agreement can be renewed up to three times extending the total contract to a maximum of four (4) years. The renewal option request, made by the vendor, can be based on either a no added cost offer or with a price increase that is tied to the Orange County Consumer Price Index. The District's current contract with SC Primesource ends on June 30, 2014. SC Primesource has sent a letter requesting to renew the contract for the next year with an increase in price based on the Orange County CPI. The current average Orange County CPI from July 2013 through April 2014 is 0.08 %. As stated in the recommendation, District staff has been happy with the service SC Primesource has been providing over the 14 months and recommends renewing the contract from July 1, 2014 thru June 30, 2015 at the new rates listed below. Based upon this CPI the new monthly cost for services would be $5,262.30 with an estimated annual cost of $63,147.60. This price does not reflect any additional services that the district might request such as carpet cleaning or addition cleaning outside the scope of work. PRIOR RELEVANT BOARD ACTION(S): On April 11, 2013 the Board of Directors approved the original Janitorial Contract with SC Primesource ATTACHMENTS: Name: Description: Type: Backup Material Distributed Less Than 72 Hours Prior to Revised Agenda Report.docx Backup Material the Meeting Approved by the Board of Directors of the Yorba Linda Water District RUPH 5 -0 Revised total estimated 12 -month contract cost of $58,937.76. Material Distributed Less Than 72 Hours Prior to the Meeting REVISED AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors Funds From: Steve Conklin, Acting General Mgr Presented By: John DeCriscio, Operation Mgr Prepared By: Harold Hulbert, Operation Assist Subject: Renewal of Janitorial Contract ITEM NO. 7.9. Budgeted: Yes Total Budget: $65,000 Cost Estimate: $58,937.76 Funding Source: All Water Account No: 1- 5060 - 0600 -35 Job No: xxx Dept: Operations Reviewed by Legal: N/A CEQA Compliance: N/A SUMMARY: On April 11, 2013 the Board of Directors approved the change in Janitorial service to SC Primesource for a 14 -month initial contract with three (3) annual renewal options. The current contract runs from May 1, 2013 to June 30, 2014. SC Primesource is requesting to renew the contract for the next fiscal year. SC Primesource has provided quality services to the District and staff supports the request for a 12 -month renewal. STAFF RECOMMENDATION: That the Board of Directors authorize the Acting General Manager to renew the Janitorial Service Contract with SC PrimeSource, Inc. The term of the contract would be 12 months with service starting on July 1, 2014 and ending on June 30, 2015, with a total estimated 12 -month contract cost of $63,147.60 58,937.76. COMMITTEE RECOMMENDATION: The PEO Committee discussed this item at its meeting held June 5, 2014 and supports staff's recommendation. Material Distributed Less Than 72 Hours Prior to the Meeting DISCUSSION: The District's Maintenance and Supplier agreements include options for renewing the contracts without the District having to seek new proposals. Each contract agreement can be renewed up to three times extending the total contract to a maximum of four (4) years. The renewal option request, made by the vendor, can be based on either a no added cost offer or with a price increase that is tied to the Orange County Consumer Price Index. The District's current contract with SC Primesource ends on June 30, 2014. SC Primesource has sent a letter requesting to renew the contract for the next year with an increase in price based on the Orange County CPI. The current average Orange County CPI from July 2013 through April 2014 is 0.08% ,` °fti;. As stated in the recommendation, District staff has been happy with the service SC Primesource has been providing over the 14 months and recommends renewing the contract from July 1, 2014 thru June 30, 2015 at the new rates listed below. Based upon this CPI the new monthly cost for services would be $5,200 4,911.48 with an estimated annual cost of $63,147.60 58,937.76. This price does not reflect any additional services that the district might request such as carpet cleaning or addition cleaning outside the scope of work. STRATEGIC PLAN: N/A PRIOR RELEVANT BOARD ACTION(S): On April 11, 2013 the Board of Directors approved the original Janitorial Contract with SC Primesource. ATTACHMENTS: N/A Meeting Date To: From: Presented By Prepared By: Subject: SUMMARY: AGENDA REPORT June 12, 2014 Board of Directors ITEM NO. 8.1 Steve Conklin, Acting General Manager Delia Lugo, Finance Manager Dept: Finance Delia Lugo, Finance Manager Appropriations Limit for FY 2014/15 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 it is historically well below the Appropriations Limitation each year. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 14 -03 Adopting the Appropriations Limit for Fiscal Year 2014/15. COMMITTEE RECOMMENDATION: The Finance - Accounting Committee reviewed this matter at it meeting held on May 20, 2014 and support 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 passes Proposition 4, the Gann Spending Limitation Initiative, which added Article XIIIB to the California Constitution. Under Article XIIIB, a government 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 or 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 2014/15, in compliance with the terms of Article XIIB of the California Constitution and the Government Code Section 7900. The starting point for computing the Appropriations Limit is the Appropriations Subject to Limitation in the Base Year of 1978/79. This number is multiplied by the 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 $1,283,642, budgeted for FY 2014/15, is substantially lower that the calculated limitation of $6,025,347. 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. 13 -08 on June 13, 2013, Adopting the Appropriations Limit for Fiscal Year 2013/14. ATTACHMENTS: Resolution No. 14 -03 - Appropriations Limit.doc GANN Calculation 2014- 15.xlsx Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 PH /GM 5 -0 Roll Call Description: Resolution 14 -03 GANN Calculation Type: Backup Material Backup Material RESOLUTION NO. 14 -03 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2014/15 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 2014/15, 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 2014/15 of $6,025,347. Resolution No. 14 -03 Adopting the Appropriations Limit for FY 2014/15 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 12th day of June, 2014 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert Kiley, 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 Resolution No. 14 -03 Adopting the Appropriations Limit for FY 2014/15 2 Special District: Yorba Linda Water District Fiscal Year: 2014 -2015 Budget: _X_ or Actual REVENUE A. LAST YEAR'S LIMIT B. ADJUSTMENT FACTORS 1. Population % 0.93% 2. Inflation % -0.23% Total Adjustment % C. ANNUAL ADJUSTMENT $ BUDGET D. OTHER ADJUSTMENTS sub total E. TOTAL ADJUSTMENTS F. THIS YEAR'S LIMIT APPROPRIATIONS SUBJECT TO LIMITATION AMOUNT SOURCE 5,983,590 1.0093 1 (Weighted Avg Calc) 0.9977 (State Finance) 1.0070 (b1 *b2) 6,025,347 1 B *A 6,025,347 (C +D) 6,025,347 (A +E) Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT June 12, 2014 Board of Directors Steve Conklin, Acting General Manager Budgeted Funding Source: Gina Knight, HR /Risk Manager Dept: Gina Knight, HR /Risk Manager Proposed Budgeted Positions for Fiscal Year 2014/2015 ITEM NO. 8.2 Yes All Funds Human Resources /Risk Management The District's Board of Directors on an annual basis adopts a budget. In addition, the Board of Directors considers and approves the funding for the proposed positions for that given Fiscal Year. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 14-04 Approving the Budgeted Positions for Fiscal Year 2014/2015 and Rescinding Resolution No. 13 -18. COMMITTEE RECOMMENDATION: That the Board of Directors consider and approve Resolution No. 14 -04 Approving The Budgeted Positions for Fiscal Year 2014/2015 and Rescinding Resolution No. 13 -18. DISCUSSION: The District's Board of Directors will consider adopting a Budget that will fund seventy -seven full - time positions and one part -time position for Fiscal Year 2014/2015. The part -time position will assist with public relations /governmental affairs. STRATEGIC PLAN: WE 2 -D: Develop Methodologies to Assist Employees in Preparing for Advancement PRIOR RELEVANT BOARD ACTION(S): The Board of Directors annually considers adopting a resolution authorizing budgeted positions, in accordance with the District's Personnel Rules. ATTACHMENTS: Name: Description: Type: Resolution No. 14- 04.doc Resolution 14 -04 Backup Material Reso -14 -04 Exhibit A Authorized Positions FY 2014 - Budgeted Positions FY 2013 -2015 Backup Material 2015 - FINAL - 6- 5- 2014.xls Revised Exhibit A.pdf Backup Material Distributed Less Than 72 Hours Prior to Backup Material the Meeting Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 GM /PH 5 -0 Roll Call Revised Exhibit A. RESOLUTION NO. 14 -04 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE BUDGETED POSITIONS FOR FISCAL YEAR 2014/15 AND RESCINDING RESOLUTION NO. 13 -18 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. 13 -18 on December 23, 2013 approving the budgeted positions for the remainder of Fiscal Year 2013/14; and WHEREAS, it is the desire of the Board of Directors to adopt Budgeted Positions for Fiscal Year 2014/15 as set forth in Exhibit "A" attached hereto, and to rescind Resolution No. 13 -18. 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 2014/15 effective July 1, 2014. 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 while this Resolution is active to fill a budgeted position that is vacated 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. 13 -18 is hereby rescinded effective July 1, 2014. Resolution No. 14 -04 Approving Budgeted positions for FY 2014/15 PASSED AND ADOPTED this 12th day of June 2014 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert R. Kiley, President Yorba Linda Water District ATTEST: Steve Conklin, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law, LLP Resolution No. 14 -04 Approving Budgeted positions for FY 2014/15 Exhibit "A" Resolution No. 14 -04 Budgeted Positions for 2014/2015 Effective July 1, 2014 Budgeted Budgeted Salary as of Proposed as of Range Position Classification 9/26/2013 Change 7/1/2014 12 Office Clerk 0 1 1 15 Customer Service Rep 1 1 -1 0 16 Meter Reader 1 2 -1 1 17 Customer Service Rep 11 1 1 2 Accounting Assistant 1 1 1 Maintenance Worker 1 9 9 Mechanic 1 0 0 Engineering Secretary 1 -1 0 Operations Secretary 0 0 18 Meter Reader II 2 2 19 Customer Service Rep III 2 2 Y Records Management Specialist 1 1 Storekeeper 0 0 Operations Assistant 1 -1 0 Operations /Warehouse Assistant 0 1 1 20 Engineering Technician 1 0 0 Water Quality Technician 1 0 0 Maintenance Dist. Operator II 8 8 21 Facilities Maintenance 1 1 Accounting Assistant 11 1 1 Mechanic II 1 1 22 Water Quality Technician II 1 1 Information Systems Tech 1 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 11 3 3 Mechanic III 1 1 24 Construction Inspector 1 1 Engineering Technician II 2 2 Information Systems Tech 11 0 0 25 Human Resources Analyst 1 1 Instrumentation Technician 1 1 26 GIS Administrator 1 -1 0 GIS Analyst 0 1 1 Project Engineer 0 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 1 -1 0 Associate Engineer 28 Management Analyst Construction Project Supervisor Programmer Analyst 29 Safety and Training Officer Sr. Project Engineer 30 Water Maint. Superintendent Sr. Accountant SCADA Administrator Public Information Officer IS Administrator Safety and Training Coordinator 31 Chief Plant Operator Water Production Superintendent Water Quality Engineer 32 Executive Secretary 34 Sr. Project Manager 37 Human Resources and Risk Manager Finance Manager Operations Manager Engineering Manager IT Manager Salary General Manager Set by Board Total Salary 1 Range Position Classification 1 -11 Public /Governmental Affairs Intern 10 Public Affairs Specialist 12 Human Resources Clerk 24 GIS Technician Total 0 1 1 1 0.5 1 1 -0.5 1 1 -0.5 1 0 -1 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 -1 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 78 -1 77 0.5 -0.5 0 0 0.5 0.5 Z 0.5 -0.5 0 0.5 -0.5 0 1.5 -1 0.5 Y One Customer Service Rep III is underfilled with a Customer Service Rep II and is budgeted at a CSRII. Z Part -time position budgeted for FY 2014 -2015. This position will be utilized in the Public /Governmental Affairs division of the Administration Department. Backup Material Distributed Less Than 72 Hours Prior to the Meeting Exhibit "A" Resolution No. 14 -04 Budgeted Positions for 2014/2015 Effective July 1, 2014 Budgeted Budgeted Salary as of Proposed as of Range Position Classification 9/26/2013 Change 7/1/2014 12 Office Clerk 0 1 1 15 Customer Service Rep 1 1 -1 0 16 Meter Reader 1 2 -1 1 17 Customer Service Rep 11 1 1 2 Accounting Assistant 1 1 1 Maintenance Worker 1 9 9 Mechanic 1 0 0 Engineering Secretary 1 -1 0 Operations Secretary 0 0 18 Meter Reader II 2 2 19 Customer Service Rep III 2 2 Y Records Management Specialist 1 1 Storekeeper 0 0 Operations Assistant 1 -1 0 Operations /Warehouse Assistant 0 1 1 20 Engineering Technician 1 0 0 Water Quality Technician 1 0 0 Maintenance Dist. Operator 11 8 8 21 Facilities Maintenance 1 1 Accounting Assistant II 1 1 Mechanic 11 1 1 22 Water Quality Technician II 1 1 Information Systems Tech 1 1 1 23 Maintenance Dist. Operator 111 4 4 Meter Services Lead 1 1 Personnel Technician 1 -1 0 Human Resources Technician 0 1 1 Plant Operator 11 3 3 Mechanic 111 1 1 24 Construction Inspector 1 1 Engineering Technician 11 2 2 Information Systems Tech 11 0 0 25 Human Resources Analyst 1 1 Instrumentation Technician 1 1 26 GIS Administrator 1 -1 0 GIS Analyst 0 1 1 Project Engineer 0 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 1 -1 0 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Safety and Training Analyst Associate Engineer 28 Management Analyst Construction Project Supervisor Programmer Analyst 29 Safety and Training Officer Sr. Project Engineer 30 Water Maint. Superintendent Sr. Accountant SCADA Administrator Public Information Officer IS Administrator Safety and Training Coordinator 31 Chief Plant Operator Water Production Superintendent Water Quality Engineer 32 Executive Secretary 34 Sr. Project Manager 37 Human Resources and Risk Manager Finance Manager Operations Manager Engineering Manager IT Manager Salary General Manager Set by Board Total Salary -0.5 Range Position Classification 1 -11 Public /Governmental Affairs Intern 10 Public Affairs Specialist 12 Human Resources Clerk 24 GIS Technician Total 0 1 1 0 1 1 1 1 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 -1 0 1 -1 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 78 -1 77 0.5 -0.5 0 0 0.5 0.5 Z 0.5 -0.5 0 0.5 -0.5 0 1.5 -1 0.5 Y One Customer Service Rep III is underfilled with a Customer Service Rep II and is budgeted at a CSRII. Z Part -time position budgeted for FY 2014 -2015. This position will be utilized in the Public /Governmental Affairs division of the Administration Department. ITEM NO. 8.3 AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Dept: Finance Prepared By: Delia Lugo, Finance Manager Subject: Adopting a Public Investment Policy SUMMARY: Staff is presenting the District's public investment policy for review and adoption. Staff has recommended no changes from the current investment policy. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 14 -05 Setting Forth a Public Funds Investment Policy and Rescinding Resolution No. 13 -06. COMMITTEE RECOMMENDATION: The Finance - Accounting Committee discussed this matter at its meeting held on May 20, 2014 and supports staffs recommendation. DISCUSSION: The California Government Code says "the treasurer or chief fiscal officer of a local entity may annually render to the legislative body of that local agency and any oversight committee of that local agency, a statement of investment policy, which should be considered at a public meeting." As such, Resolution No. 14 -05 is being presented before the entire Board. There are no changes from the current investment policy adopted by Resolution No. 13 -06 on May 9, 2013. STRATEGIC PLAN: FR 2 -C: Implement an Approach to Ensure Reserves are Responsibly Funded PRIOR RELEVANT BOARD ACTION(S): The District's current investment policy was adopted by Resolution No. 13 -06 on May 9, 2013. ATTACHMENTS: Name: Description: Type: Resolution No. 14 -05 Investment Policy.docx Resolution No. 14 -05 Backup Material Investment Policy June 2014.docx Policy Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 RC /PH 5 -0 Roll Call RESOLUTION NO. 14 -05 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING FORTH A PUBLIC FUNDS INVESTMENT POLICY AND RESCINDING RESOLUTION NO. 13 -06 WHEREAS, California Government Code (CGC) Section 53600 sets forth guidelines for the investment of public funds; and WHEREAS, the current Yorba Linda Water District Investment Policy was adopted by Resolution No. 13 -06 on May 9, 2013; and WHEREAS, the District is in possession of public funds that are not required for immediate expenditure, and are available for investment; and WHEREAS, a policy setting forth guidelines for the investment of said funds is necessary for compliance with the principles of sound financial management; and WHEREAS, the Board of Directors of the Yorba Linda Water District desire to adopt the Investment Policy set forth herein. NOW, THEREFORE, BE IT RESOLVED by Board of Directors of the Yorba Linda Water District as follows: Section 1. Exhibit 1 (Investment Policy — Yorba Linda Water District) is hereby adopted and deemed implemented concurrent with passage and adoption of this Resolution. Section 2. That Resolution No. 13 -06 is hereby rescinded immediately upon adoption of this Resolution. PASSED AND ADOPTED this 12th day of June 2014 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert R. Kiley, President Yorba Linda Water District Resolution No. 14 -05 Setting Forth a Public Funds Investment Policy and Rescinding Resolution No. 13 -06 ATTEST: Steven R. Conklin, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law, LLP Resolution No. 14 -05 Setting Forth a Public Funds Investment Policy and Rescinding Resolution No. 13 -06 ImYorba Linda Water District INVESTMENT POLICY BOARD OF DIRECTORS Robert R. Kiley, President Ric Collett, Vice President Michael J. Beverage, Board Member Gary T. Melton, Board Member Phil Hawkins, Board Member Steven R. Conklin, Acting General Manager June 2014 TABLE OF CONTENTS Section 1 Policy Section 2 Scope Section 3 Delegation of Authority Section 4 Investment Objectives Section 5 Prudence Section 6 Ethics and Conflicts of Interest Section 7 Authorized Broker /Dealers Section 8 Authorized Investments Section 9 Review of Investment Portfolio Section 10 Investment Pools Section 11 Collateralization Section 12 Safekeeping and Custody Section 13 Diversification and Maximum Maturities Section 14 Internal Controls Section 15 Performance Standards Section 16 Reporting Section 17 Investment Policy Adoption Appendix "A" Description of Authorized Investments and Restrictions Appendix "B" Glossary Investment Policy — June 2014 SECTION 1: POLICY 1.1 It is the policy of the Yorba Linda Water District ( "District ") to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds. 1.2 The purpose of this policy is to provide guidelines for the prudent investment of funds of the District and to outline the policies for maximizing the efficiency of the District's cash management. The District's goal is to enhance the economic status of the District consistent with the prudent protection of the District's investments. This investment policy has been prepared in conformance with all pertinent existing laws of the State of California. SECTION 2: SCOPE 2.1 This Investment Policy applies to all funds and investment activities of the District, except for the proceeds from capital project financing instruments, which are invested in accordance with provisions of their specific documents. These funds are accounted for as Enterprise Funds and are identified in the District's Comprehensive Annual Financial Report. SECTION 3: DELEGATION OF AUTHORITY 3.1 The authority of the Board of Directors to invest funds is derived from Section 53601 of the California Government Code ( "CGC "). Section 53607 of the CGC grants the Board of Directors the authority to delegate that authority, for a one -year period, to the District's Treasurer. Therefore, management responsibility for the investment program is hereby delegated to the District's Treasurer, who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the Treasurer. The Treasurer shall establish procedures for the management of investment activities, including the activities of staff consistent with this Policy. 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 1 Investment Policy — June 2014 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 2 Investment Policy — June 2014 aims, to safeguard the principal and maintain the liquidity needs of the agency." 5.2 The Treasurer and delegated investment officers, acting in accordance with District procedures and the Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 5.3 Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. SECTION 6.0: ETHICS AND CONFLICTS OF INTEREST 6.1 Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District's General Manager any material financial interests in financial institutions that conduct business with the District's boundaries, and they shall further disclose any large personal financial /investment positions that could be related to the performance of the District. SECTION 7: AUTHORIZED BROKER/DEALERS 7.1 The Treasurer will maintain a list of authorized broker /dealers and financial institutions that are approved for investment purposes. Broker /dealers will be selected for credit worthiness and must be authorized to provide investment services in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15(C)3 -1 (uniform net capital rule). No public deposit will be made by the broker /dealer except in a qualified public depository as established by the established state laws. Before a financial institution or broker /dealer is used, they are subject to investigation and approval by the Treasurer or his /her designated representative, and must submit the following: 3 Investment Policy — June 2014 7.1.1 Certification of having read and understood this investment policy resolution and agreeing to comply with the District's investment policy; 7.1.2 Proof of Federal Investment Regulatory Authority certification; 7.1.3 Proof of State of California registration; 7.1.4 Audited financial statements for the institution's three (3) most recent fiscal years; 7.1.5 References of other public- sector clients that similar services are provided to. 7.2 If a third party investment advisor is authorized to conduct investment transactions on the District's behalf, the investment advisor may use their own list of approved independent broker /dealers and financial institutions. The investment advisor's approved list must be made available to the District upon request. SECTION 8: AUTHORIZED INVESTMENTS 8.1 The District is provided a broad spectrum of eligible investments under the CGC Sections 53601 et seq. Authorized investments shall also include, in accordance with CGC section 16429.1 et seq., investments into the Local Agency Investment Fund (LAIF) and the Orange County Treasurer's Commingled Investment Pool in accordance with CGC section 53684. Within the investments permitted by the CGC, the District seeks to further restrict eligible investment to the investments listed in Section 8.3 below. Percentage holding limits listed in this section apply at the time the security is purchased. Ratings, where shown, specify the minimum credit rating category required at purchased without regard to +/- or 1,2,3 modifiers, if any. 8.2 The purchase of any investment permitted by the CGC, but not listed as an authorized investment in this Policy is prohibited without the prior approval of the Board of Directors. M Investment Policy — June 2014 8.3 Within the context of these limitations, the following investments are authorized: TABLE 1 Permitted Investments * / Deposits CA Government Code % of Portfolio Limits / Maturity Limits YLWD % of Portfolio Limits / Maturity Limits Bank Deposits# No % limit, 5 years No % limit, 5 years CD Placement Service# 30% limit, 5 years 30% limit, 5 years Local Agency Investment Fund (LAIF)^ No % or maturity limit No % or maturity limit County Pooled Investment Funds/' No % or maturity limit No % or maturity limit Joint Powers Authority Funds (Ca1TRUST & 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 5 Investment Policy — June 2014 SECTION 9: REVIEW OF INVESTMENT PORTFOLIO 9.1 The securities held by the District must be in compliance with Section 8 Authorized Investments at the time of purchase. The Treasurer shall at least quarterly review the portfolio to verify that all securities are in compliance with Section 8 Authorized Investments. In the event a security held by the District is subject to a credit rating change that brings it below the minimum credit ratings specified in Appendix A Authorized Investments, the Treasurer should notify the Finance - Accounting Committee - and through the Committee's minutes, the Board - of the change. The course of action to be followed will then be decided on a case -by -case basis, considering such factors as the reason for the change, prognosis for recovery or further rate drops, and the market price of the security. SECTION 10: INVESTMENT POOLS 10.1 A thorough investigation of any investment pool or mutual fund is required prior to investing, and on a continual basis. The investigation will, at a minimum, obtain the following information: 10.1.1 A description of eligible investment securities, and a written statement of investment policy and objectives; 10.1.2 A description of interest calculations and how it is distributed, and how gains and losses are treated; 10.1.3 A description of how the securities are safeguarded (included the settlement processes), and how often the securities are priced and the program audited; 10. 1.4 A description of who may invest in the program, how often and what size deposit and withdrawal are allowed; 10.1.5 A schedule for receiving statements and portfolio listings; 10. 1.6 Are reserves, retained earnings, etc. utilized by the pool /fund; 10.1.7 A fee schedule and when and how it is assessed; 6 Investment Policy — June 2014 10.1.8 Is the pool /fund eligible for bond proceeds and /or will it accept such proceeds. 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. 7 Investment Policy — June 2014 SECTION 14: INTERNAL CONTROLS 14.1 The external auditors will annually review the investments and general activities associated with the investment program. This review will provide internal control by assuring compliance with the Investment Policy and District policies and procedures. SECTION 15: PERFORMANCE STANDARDS 15.1 The investment portfolio will be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. 15.2 The District's investment strategy is passive. The performance of the District's investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District's Safety, Liquidity and Return on Investments objectives. This review will be conducted annually with the Finance - Accounting Committee. SECTION 16: REPORTING 16.1 Subject to CGC sections 53607 and 53646(b), the Treasurer will provide monthly investment reports to the District's Finance - Accounting Committee (and through the Committee's minutes, to the Board of Directors) and quarterly reports to the Board of Directors which provide a clear picture of the status of the current investment portfolio. The reports shall comply with the reporting requirements of CGC sections 53607 and 53646(b), respectively. SECTION 17: INVESTMENT POLICY ADOPTION 17.1 The District's Investment Policy will be adopted by resolution of the Board of Directors. The policy will be reviewed on an annual basis and modification, if any, must be approved by the Board of Directors. Investment Policy — June 2014 APPENDIX "A" DESCRIPTION OF AUTHORIZED INVESTMENTS AND RESTRICTIONS The following descriptions of authorized investments, maximum maturities and limits are included here to assist in the administration of this policy. 1) BANK DEPOSITS The District may make bank deposits in accordance with California Government Code section 53630 et seq., which requires collateral. Per California Government Code Section, there are three classes of deposits: (a) inactive deposits, (b) active deposits and (c) interest - bearing active deposits. The collateral requirements apply to both active deposits (checking and savings accounts) and inactive deposits (non - negotiable time certificates of deposit). The maximum maturity shall be five years. No limit will be placed on the percentage total invested in this category. 2) CD PLACEMENT SERVICE — Government Code Sections 53601.8 and 53653.8 The District may invest in collateralized certificates of deposits in accordance with the requirements in California Government Code Sections 53601.8 and 53635.8. Purchases of certificates of deposit pursuant to Government Code Sections 53601.8, 53653.8, and 53601 shall not, in total, exceed 30 percent of District's investment portfolio. The maximum maturity is limited to five years. 3) THE STATE LOCAL AGENCY INVESTMENT FUND (LAIF) — Government Code Section 16429.1 The LAIF is a special fund in the California State Treasury and an investment alternative for California's local governments and special districts created and governed pursuant to CGC Section 16429.1 et seq. and managed by the State Treasurer's Office. The District, with the consent of the Board of Directors, is authorized to remit money not required for the District's immediate need, to the State Treasurer for deposit in this fund for the purpose of investment. Principal may be withdrawn on one day's notice. The fees charged by LAIF are limited by statute. Investment of District funds in LAIF shall be subject to investigation and due diligence prior to 0 Investment Policy — June 2014 investing, and on a continual basis to a level of review described in Section 10 Investment Pools. No limit will be placed on the percentage total in this category. 4) ORANGE COUNTY TREASURER'S COMMINGLED INVESTMENT POOL ( OCCIP) — Government Code Section 53684 The OCCIP is a money market investment pool managed by the Orange County Treasurer's Office. OCCIP is more fully described in the glossary at Appendix B. The District has no funds invested in OCCIP at this time. Investment of District funds in OCCIP would be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review described in Section 10 Investment Pools. There is no maturity limit. No limit will be placed on the percentage total in this category. 5) THE INVESTMENT TRUST OF CALIFORNIA (CALTRUST) — Government Code Section 53601(p) The Investment Trust of California (CalTRUST) is a local government investment pool organized as a joint powers authority pursuant to California Government Code Section 6509.7. Wells Capital Management, a wholly - owned subsidiary of Wells Fargo, is the portfolio manager for each of the Ca1TRUST funds. Investment of District funds in Ca1TRUST shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review described in Section 10 Investment Pools. No limit will be placed on the percentage total in this category. 6) CALIFORNIA ASSSET MANAGEMENT PROGRAM (CAMP) — Government Code Section 53601(p) The Trust is currently governed by a Board of five Trustees, all of whom are officials or employees of Public Agencies. The Trustees are responsible for setting overall policies and procedures for the Trust. The Program's Investment Adviser and Administrator is Public Financial Management, Inc. The amounts deposited in this category shall be limited to bond proceeds and are to be invested for the purpose of arbitrage management only. The District has no funds invested in CAMP at this time. Investment of District funds in OCCIP would be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review described in Section 10 Investment Pools. Proceeds may be invested in the Treasury Portfolio 10 Investment Policy — June 2014 and /or the Money Market Portfolio. There is no maturity limit. No limit will be placed on the percentage total in this category. 7) U.S. TREASURY OBLIGATIONS — Government Code Section 53601(b) United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. The maximum maturity shall be limited to five years. No limit will be placed on the percentage total invested in this category. 8) U.S. AGENCY OBLIGATIONS — Government Code Section 53601(f) Federal agency or United States government- sponsored enterprise senior debt obligations, participations, mortgaged- backed securities or other instruments, including those issued by or fully guaranteed as to principal and interest by Federal agencies or United States government- sponsored enterprises. Examples of these securities include Federal National Mortgage Association, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation and Federal Home Loan Bank. The maximum maturity shall be limited to five years with no limit placed on the percentage total in this investment category. 9) NEGOTIABLE CERTIFICATES OF DEPOSIT — Government Code Section 53601(1) Investments are limited to deposits issued by a nationally or state - chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state - licensed branch of a foreign bank. Individual investments shall be limited to Federal Deposit Insurance Corporation- insured limits of $250,000. Purchases of certificates of deposit pursuant to Government Code Sections 53601.8, 53653.8, and 53601 shall not, in total, exceed 30 percent of District's investment portfolio. The maximum maturity is limited to five years. 11 Investment Policy — June 2014 10) MONEY MARKET FUNDS — Government Code Section 53601(1)(2) Shares of a beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission. The company shall have met either of the following criteria: (A) attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized rating services and (B) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). There is no maturity limit. A maximum of 20 percent of the portfolio may be invested in this category, and a maximum of 10 percent of the portfolio may be invested in any single issuer. If the District has funds invested in a money market fund, a copy of the fund's information statement shall be maintained on file. In addition, the Treasurer should review the fund's summary holdings on a quarterly basis. 11) MEDIUM -TERM (OR CORPORATE) NOTES — Government Code Section 53601(k) Medium -term notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less. The corporation must be domestic, the notes must be domestic and the notes must be issued in the United States. The corporation must be rated A or its equivalent or better by a nationally recognized rating service. The maximum maturity is limited to five years and the maximum percentage allowable for investment is 30 percent of the investment portfolio in the aggregate. 12) BANKERS' ACCEPTANCES — Government Code Section 53601 (g) Bankers' acceptances, otherwise known as bills of exchange or time drafts, are drawn on and accepted by a commercial bank. Purchases are limited to bankers' acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System. Eligible bankers' 12 Investment Policy — June 2014 acceptances are restricted to issuing financial institutions with a short -term debt rating of at least "A -1" or its equivalent by a nationally recognized rating service. The maximum term may not exceed 180 days and the maximum percentage allowable for investment is 10 percent of the portfolio in the aggregate, and 5% for an individual issuer. 13) COMMERCIAL PAPER— Government Code Section 53601(h) Commercial paper rated the highest ranking or of the highest letter and number ratings as provided for by a nationally recognized rating service. The entity that issues the commercial paper shall meet either of the following two sets of criteria: (1) The corporation shall be organized and operating within the United States, shall have total assets in excess of $500,000,000, and shall have debt, other than commercial paper, if any, that is rated A or higher by a nationally recognized rating service. (2) The corporation shall be organized within the United States as a special purpose corporation, trust, or limited liability company, has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond; has commercial paper that is rated "A -1" or higher, or equivalent by a nationally recognized statistical- rating organization. Eligible commercial paper may not exceed 270 days' maturity and may not represent more than the 25 percent of the investment portfolio in the aggregate, and 5% for an individual issuer. 13 Investment Policy — June 2014 APPENDIX `B" GLOSSARY AGENCIES: Federal agency securities and /or Government- sponsored enterprises. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large- denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of the District. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance- related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. 14 Investment Policy — June 2014 COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non - interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills) DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed- income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S &L's, small business firms, students, farmers, farm cooperatives, and exporters. 15 Investment Policy — June 2014 FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open- market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed -rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FHA mortgages. The term "pass - throughs" is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to 16 Investment Policy — June 2014 be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase— reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer - lender to liquidate the underlying securities in the event of default by the seller borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short -term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)- registered securities broker - dealers, banks, and a few unregulated firms. 17 Investment Policy — June 2014 PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state —the so- called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15(C)3 -1: See Uniform Net Capital Rule. Investment Policy — June 2014 STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step -up coupons, floating rate coupons, derivative -based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. TREASURY BILLS: A non - interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long -term coupon- bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium -term coupon- bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker - dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 19 AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors ITEM NO. 8.4 From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Dept: Finance Prepared By: Delia Lugo, Finance Manager Subject: Financial Reserves Policy for FY 2014/15 STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 14 -06 Adopting the Financial Reserves Policy and Rescinding Resolution No. 13 -07. COMMITTEE RECOMMENDATION: The Finance - Accounting Committee discussed this matter at its meeting held May 20, 2014 and supports staffs recommendation. DISCUSSION: When the financial reserves policy was adopted last June, staff indicated that it would be reviewed annually to determine if updates were needed. Staff is not proposing any major changes in this years' policy, where the total amount of requested reserves remain the same as the prior year. As presented, minor changes have been made consisting primarily of updating account balances in the Employee Liabilities 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. 13 -07 on June 13, 2013. ATTACHMENTS: Name: Description: Resolution No. 14 -06 - Resolution Financial Reserves Policv.doc Financial Reserves Policy - FY 14 -15 5.14.14.docx Policy Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 GM /PH 5 -0 Roll Call Type: Backup Material Backup Material RESOLUTION NO. 14 -06 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE FINANCIAL RESERVES POLICY AND RESCINDING RESOLUTION NO. 13 -07 WHEREAS, the purpose of the Yorba Linda Water District's (YLWD) 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. 14 -06 Adopting the Financial Reserves Policy Section 2. This Financial Reserves Policy adopted herein takes effect on July 1, 2014 and Resolution No. 13 -07 is hereby rescinded on July 1, 2014. PASSED AND ADOPTED this 12th day of June 2014 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert R. Kiley, 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 Resolution No. 14 -06 Adopting the Financial Reserves Policy 2 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. May 14, 2014 Page 1 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. May 14, 2014 Page 2 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 $1,000,383 at June 30, 2013, the target is projected to be approximately $2,433,580 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. May 14, 2014 Page 3 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 May 14, 2014 Page 4 of 4 Meeting Date: To: From: Presented By: Prepared By: AGENDA REPORT June 12, 2014 Board of Directors Steve Conklin, Acting General Manager Delia Lugo, Finance Manager Delia Lugo, Finance Manager Subject: FY 2014/15 Water Rate Increase STAFF RECOMMENDATION: Dept: ITEM NO. 8.5 Finance That the Board of Directors approve Resolution No. 14 -07 Setting Water Rates Effective July 1, 2014 and Rescinding Resolution No. 13 -13. COMMITTEE RECOMMENDATION: The Finance - Accounting Committee discussed this matter at its meeting held on May 20, 2014 and supports staff's recommendation. DISCUSSION: In June 2012, the Board held a meeting to consider a three -year rate increase as was noticed to the District's customers through the Prop. 218 process. The Board elected to move forward with the three -year rate increase. However, to allow the possibility that the District's financial situation might improve enough where the rate increase identified in the Notice of Proposed Water Rate Increase was not necessary, the Board elected to only adopt the first year of the three annual rate increases. In June 2013, the Board did a similar financial evaluation and elected to adopt the second year of the three annual increases, being a 2.5% rate increase. Through the preparation of the FY 14/15 Budget, it has become evident that the previously noticed 2.5% rate increase is necessary for this fiscal year, being the third of three annual rate increases. As a result, staff is presenting Resolution No. 14 -07 which sets the Water Rates Effective July 1, 2014. STRATEGIC PLAN: FR 2 -C: Implement an Approach to Ensure Reserves are Responsibly Funded PRIOR RELEVANT BOARD ACTION(S): On June 25, 2013 the Board adopted Resolution No. 13 -13, setting water rates for the 2013/14 fiscal year. ATTACHMENTS: Name: Description: Type: Resolution No. 14 -07 - Setting Water Rates.doc Resolution No. 14 -07 Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 RC /MB 5 -0 Roll Call RESOLUTION NO. 14 -07 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING WATER RATES EFFECTIVE JULY 1, 2014, AND RESCINDING RESOLUTION NO. 13 -13 WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the Yorba Linda Water District (YLWD) is required to set water rates at a level which will pay for the provision of water services; and WHEREAS, pursuant to Government Code Section 53756, YLWD may adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water; and WHEREAS, the Board of Directors previously adopted Resolution No. 13 -13, which established water rates effective July 1, 2013; and WHEREAS, YLWD has determined the unit cost of changes in rates from the Metropolitan Water District of Southern California (MWD), the Municipal Water District of Orange County (MWDOC) and Orange County Water District (OCWD) for FY 2014/15; and WHEREAS, YLWD has prepared a budget for FY 2014/15, which includes the unit cost of the MWD, MWDOC and OCWD pass- through applied to the commodity charge of YLWD rates in accordance with Government Code Section 53756; and WHEREAS, on April 26, 2012 the Board of Directors considered Water Rate Study 2012 which included recommended water rates for FY 2012/13, FY 2013/14 and FY 2014/15 and the Board of Directors determined that the water rate increases described in Water Rate Study 2012 are necessary and sufficient to cover, without exceeding, the cost to provide water service to each customer; and WHEREAS, pursuant to and in compliance with Proposition 218 (California Constitution Art. XIII D), the District on May 4, 2012 mailed a notice of water rate increase to all customers which included the proposed rates for FY 2012/13, FY 2013/14 and FY 2014/15, and the Board of Directors has received a proof of mailing; and WHEREAS, pursuant to Proposition 218 on June 21, 2012 the Board of Directors held a hearing regarding water rate and pass- through charges for FY 2012/13, FY 2013/14 and FY 2014/15 and heard and considered protests; and Resolution No. 14 -07 Setting Water Rates WHEREAS, on July 25, 2013 the Board of Directors adopted Resolution FY 2013/14 establishing water rates for the FY 2013/14 fiscal year; and WHEREAS, the Board of Directors desires to establish water rates for the FY 2014/15 fiscal year. NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does hereby find, determine, and resolve the following: Section 1. Resolution No. 13 -13 is hereby rescinded. Section 2. Water rates for service defined in Section 3.8 of the Rules and Regulations of the Yorba Linda Water District are hereby amended as follows, to take effect on July 1, 2014: For All Potable Water Service: All Water Usage shall be charged at Basic Service Charge for: 5/8" and 3/4" Meters 1 " Meters 1 1/2" Meters 2" Meters 3" Meters 4" Meters 6" Meters $2.70 / 100 Cu. Ft. (includes FY 14/15 pass- through charge) $10.06 / Month $16.77 / Month $33.54 / Month $53.66 / Month $117.37 / Month $211.26 / Month $469.47 / Month Section 3. Additional rates and fees for service are as follows: 3.a Permanent Untreated Water Service: The current MWD Untreated Full rate, plus charges by MWDOC, plus any other fees, charges or penalties as may be imposed by MWD and /or MWDOC, plus $13 per acre foot. 3.b The charge for Temporary service as defined in Section 3.5.1 of the Rules and Regulations for Water Service shall be as follows: 3.5.1 TEMPORARY SERVICE: The rate per hundred cubic feet shall be two times the rate specified for all water service plus $2.50 per day for each day that the meter is available for use by the customer. A security deposit of $1,000 is required at the time of rental and the deposit will be returned within 15 days of the return of the meter. Resolution No. 14 -07 Setting Water Rates 2 3.c The monthly rates for Private Fire Service Protection, as defined in Section 3.6 of the Rules and Regulations for Water Service, shall be as follows: Meter Size Monthly Charge 4 inch $16.00 6 inch $35.00 8 inch $59.00 10 inch $94.00 PASSED AND ADOPTED this 12th day of June 2014 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert R. Kiley, 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 Resolution No. 14 -07 Setting Water Rates 3 AGENDA REPORT Meeting Date: June 12, 2014 To: Board of Directors From: Steve Conklin, Acting General Manager Presented By: Delia Lugo, Finance Manager Prepared By: Delia Lugo, Finance Manager Subject: Proposed Budget for FY 2014/15 SUMMARY: Dept: ITEM NO. 8.6 Finance Attached for the Board's review and consideration is the District's Budget for FY 2014/15. 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 safe and reliable public water and sewer systems. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 14 -08 Adopting the Budget for Fiscal Year 2014/15 and Rescinding Resolution No. 13 -10. DISCUSSION: The Letter of Transmittal provides an overall summary of the FY 2014/15 Budget. In general, this budget identifies $43.1 million in total outlay this next fiscal year, including $29.3 million in total expenses, $7.3 million in depreciation, and $6.5 million for capital projects. Offsetting this $29.3 million in total expenses is $32.9 million in anticipated revenue, resulting in a gain of $3.6 million. This anticipated revenue includes a pass- through increase in variable water costs as well as the third 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 $3.7 million. On a cash basis, the District's operating budget will fully fund the Financial Reserves Policy annual funding recommendations, with $1.6 million being generated towards reserves in the Water Fund, and $543,000 being generated in the Sewer Fund. Attached to this report is Resolution No. 14 -08 adopting the Budget for Fiscal Year 2014/15 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 Director's reviewed preliminary budget summaries for FY 2014/15 at two special workshops held on March 17, 2014 and April 21, 2014. ATTACHMENTS: Name: Resolution No. 14 -08 - FY 2014 -15 Budget.docx FY 2014 -15 Budget Document FINAL.pdf Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 PH /MB 5 -0 Roll Call Description: Resolution No. 14 -08 FY 2014/15 Budget Document Type: Backup Material Backup Material RESOLUTION NO. 14 -08 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE BUDGET FOR FISCAL YEAR 2014/15 AND RESCINDING RESOLUTION NO. 13 -10 WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal Year 2014/15; and WHEREAS, on May 22, 2014, the proposed "Draft" Budget for Fiscal Year 2014/15 was presented and reviewed at a regular meeting of the Board of Directors of the District; and WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year 2014/15, and rescind Resolution No. 13 -10. 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 2014/15, set forth in Exhibit "A" attached hereto, is hereby approved and adopted. Section 2. The Budget for Fiscal Year 2014/15 is in full force and effect beginning July 1, 2014, and continuing until this Resolution is rescinded by the Board of Directors. Section 3. That Resolution No. 13 -10 is hereby rescinded effective July 1, 2014. PASSED AND ADOPTED this 12th day of June 2014, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Robert R. Kiley, President Yorba Linda Water District ATTEST: Resolution No. 14 -08 Adopting the Budget for FY 2014/15 Steven R. Conklin, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP Resolution No. 14 -08 Adopting the Budget for FY 2014/15 YL • � . • . ANNUAL OPERA FOR THE FISC ENDING JUNE e f Tr4Sted& �� 1 for more than 00 years ReliabieService It "all d 1 ° i A f rte ► d ,,W a Ali _ ® < w , ® Yorba Linda J. Water Dist YORBA LINDA, CALIFORNIA Table of Contents LETTER OF TRANSMITTAL 4 BUDGET OVERVIEW Resolution 12 -14 Adopting FY 2013/14 Budget 15 GFOA Distinguished Budget Award FY 2012/13 16 Mission & Vision Statement 17 Core Values Statement 18 Strategic Goals Statement 19 Strategic Plan 20 Profile of the District 30 Board of Directors & Executive Staff 32 Organizational Chart 33 Personnel Trends by Position 34 Personnel Trends by Department 37 Financial Policies & Goals 38 Basis of Budgeting & Accounting 40 Budget Controls 40 Budget Process 42 Budget Calendar 43 Revenue Assumptions 44 Cost Allocation 48 Chart of Major Funds Structure 48 Rate History 49 Average Residential Monthly Bill by Year 50 Demographics 51 YLWD Service Area 53 Ten Largest Customers Most Recent and Ten Years Ago 54 IaIki I_\ki [a] ►1►fi1_l: 1:K Total Revenue and Expenses (Water & Sewer) 56 Total Revenue and Expenses (Water) 58 Total Revenue and Expenses (Sewer) 60 Total Revenues by Fund 62 Total Expenses by Fund 63 Total Expenses by Category 64 Five Year Cost Comparison 64 Variable Water Cost Expenses 65 Reserves and Funding Sources 66 Projected Reserves & Funding Levels 67 Five Year Financial Projections 68 Fund Balance History 74 Debt Administration 75 Employees per Capita 76 Residential Meter Charge Comparison 77 CAPITAL PROJECTS Capital Improvement Plan 80 Capital Projects Summary 82 Vehicle Equipment and Capital Outlay 85 DEPARTMENT SUMMARIES Board of Directors 88 Administration 96 Engineering 108 Finance 122 Human Resources 136 Information Technology 150 Operations 166 APPENDIX List of Acronyms 187 Glossary of Terms 190 Financial Policies 195 ❖ Operating Budget Policy 196 ❖ Revenues and Expenditures Policy 198 ❖ Financial Reserves Policy 200 ❖ Investment Policy 205 VLM ANNUAL OPERATING BUDGET FISCAL' Letter of Transmittal = -LM ANNUAL OPERATING W To the Honorable Board of Directors: We are pleased to present the Yorba Linda Water District FY 2014/15 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 2014/15 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, while projecting realistic operating revenues without a supplement from the currently approved rate increases. The following are upcoming goals as outlined by the District's Strategic Plan, as well as highlights of achievements completed in FY 2013/14; a summary of the goals and objectives for FY 2014/15 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 proactive approach to public service, through the authorization of an Operations and Efficiency Study of the agency, which was concluded in FY 2013/14. The independent assessment of the District was aimed at taking the organization to the next level, with an eye to the future, including offering insight on best practices in the industry and exploring potential cost - saving measures. Based on the findings and recommendations of the study, the District is considering some organizational adjustments as well as possible changes in direction and focus. Until such time as the Board of Directors, in conjunction with staff, has concluded implementation of the major recommendations, the District has opted to extend the FY 2011/13 Strategic Plan Goals for another fiscal year. = -LM ANNUAL OPERATING W 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 19 of this document. The five goals that the District identified as the most critical are as follows: Goal CP: Community Partnership Goal FR: Fiscal Responsibility Goal OE: Operational Efficiency Goal SR: Service Reliability Goal WE: Workforce Engagement FY 2013/14 Highlights & Accomplishments Capital Improvement & Replacement Projects Completed • Completed Construction of 2012 Waterline Project • Completed Construction of Elk Mountain Booster Surge Tank • Completed Construction of Yorba Linda Boulevard Pipeline Project Projects in Planning, Design or Commencing Construction • Commenced Construction of Yorba Linda Booster Station Project • Commenced Construction of Well #21 • Commenced Design of Fairmont Booster Pump Station Replacement Project Other District Activities & Accomplishments • Received Positive Auditors Letter for FY 2012/13 • Received State and National Recognition for CAFR • Received State and National Recognition for FY 2013/14 Budget document • Executed Multi -Year Memorandum of Understanding (MOU) • Annexation to OCWD Approved FY 2013/14 Financial Forecast For the year ending June 30, 2014, staff is anticipating a combined loss of $761,450 for the water and sewer enterprises. These figures include total depreciation expenses (a non -cash expense) in the amount of $7,270,308. Please refer to the Summary of Total Revenue and Expenses (Water & Sewer) for supporting information (pg.56). Beginning July 1, 2013, the total reserve funds available for both Operations and Capital Projects was $19.6 million. Staff is forecasting these funds to be $20.2 million by June 30, 2014, for a total addition of $600,000 for FY 2013/14. Please see the Reserves and Funding Sources table for supporting information (pg. 66). LM ANNUAL OPERATING Principal Issues, Factors & Challenges for FY 2014/15 For the forthcoming 2014/15 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 3.7% rate increase, effective January 1, 2015; however, this is part of a 24% increase over the last five years. In the upcoming fiscal year, import water will account for 40% of our water purchases at 67% of the total variable water costs budget. Variable water costs in total comprise 55% of the District's operating expenses and ensuring these costs are held as low as possible is a top priority each fiscal year. To this end, as of May 2014, the District was granted annexation of the remaining 26% of its service area into the Orange County Water District (OCWD). It is anticipated that with full annexation the District will be able to pump the maximum groundwater allowable each year, at a lower cost than purchasing the same amount of import (MWD) water. However, the District will not be able to take advantage of full annexation for FY 2014/15 due to the 2003 Conjunctive Use Program (CUP) Agreement and due to the need to complete construction of capital facilities. The CUP Agreement requires the District to withdraw 2,193 acre -feet over and above OCWD's Basin Production Percentage (BPP) for the upcoming fiscal year and pay for the water at current import water rates, after subtracting power and operations and maintenance charges of $132 per acre -foot. The CUP allows MWD to "store" water in the Orange County Groundwater Basin and call for the extraction of that water, via wells purchased for various agencies, in times of drought when its traditional sources (the Colorado River and Bay - Delta) are less plentiful. Current facility limitations will challenge the District in producing and transferring the full BPP as well as the required CUP obligation. Had the District been able to access the entirety of the BPP in the upcoming fiscal year, the District could potentially lower its variable water costs by approximately $1 million. As later described in this document, the District's Capital Improvement Program includes construction of pumping, pipeline and well facilities over the next three years that will make it possible for the District to access its full allotment of groundwater. In addition, with an extended dry season lasting most of the year the District has sold more water than originally budgeted for FY 2013/14. This amounts to an increase in water sales revenue of $1.5 million. Over the past three fiscal years the District has averaged annual sales of 19,907 acre -feet; however, the District has budgeted for 21,980 acre -feet of water sales for FY 2014/15. The increased budget is based on the current year's forecasted usage of 22,343 acre feet. L M ANNUAL OPERATING 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, an additional 2.5% increase on July 1, 2013, and the last of the three -year increase of 2.5% beginning 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, which currently calculates to 1.10 %. The use of the line of credit will allow the District to proceed with capital improvement projects with a minimal borrowing cost and a lowered financial burden to our customers. For FY 2014/15, the following goals and objectives have been established: FY 2013/14 Goals & Objectives Key Business Objectives • Continue to Implement, Evaluate and Update the Financial Reserves Policy • Continue Implementation of the District's Computerized Maintenance and Management System (CMMS). • Pursue Opportunities for Expanded Sewer Service Area • Update Current Job Descriptions (District -wide) Customer Service and Public Affairs Enhancements • Effectively Use Broad - Spectrum Communication Opportunities • Encourage Continued Employee Training in Leadership and Technology. • Complete Implementation of Recommendations from the Operations & Efficiency Study Capital Improvement & Replacement Projects • Begin Construction of Fairmont Booster Pump Station Project • Continue Construction of Well 21 • Complete Construction of Yorba Linda Booster Station Project • Locate site and purchase property for proposed Well 22 FY 2014/15 Summary Budget Revenues Total water and sewer revenues budgeted for upcoming FY 2014/15 amount to $33 million, an increase of $1.2 million from the revenues budgeted for FY 2013/14. The major differences are comprised of the following: = -LM ANNUAL OPERATING W Water Revenue ($990,000 increase) Residential water revenue is expected to increase by $937,000 in FY 2014/15 due to an unusually dry winter 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 remain relatively stable, with only a $53,000 increase for FY 2014/15 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, which are anticipated to continue maintaining landscaped community areas at a certain level in order to maintain their investment in this landscaping. Revenues for Residential, Commercial and Landscape customers assume a voluntary 5% reduction in usage due to the declaration of drought and the extensive public information campaigns. Service Charges for all customers, which assist in covering the District's fixed costs, are expected to increase by $9,300 for FY 2013/14 which will bring the budget more in line with the forecasted charges. Other operating revenue for water, which is comprised of fluctuating income such as various rebates and refunds, is expected to decrease by $11,000. Sewer Charge Revenue ($54,762 increase) Sewer Charge Revenue funds help to finance maintenance equipment, system repairs, replacements and improvements associated with the sewer system. This revenue is expected to remain relatively constant. Expenses & Outlay Total expenses & outlay (excluding capital projects) budgeted for upcoming FY 2014/15 is $36.7 million, an increase of $2 million from the FY 2013/14 budgeted results. This includes depreciation which totals $7.3 million. The following factors summarize the significant changes: Variable Water Costs ($1,161,000 increase) The District's variable water costs will increase in FY 2014/15 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 3.7% increase in MWD rates. In addition to the increase from MWD rates, the District is budgeting to sell nearly 2,000 acre -feet more than was budgeted for FY 2013/14. The FY 2014/15 budget was established using the previous three -year average usage of 19,907 acre -feet, however taking into account that calendar year 2013 was the driest year on record in the state of California, the District is anticipated to sell 22,343, approximately 2,000 acre -feet more than originally budgeted and far beyond the previous three -year average. The California Department of Water Resources anticipates that the current drought conditions will continue through FY 2014/15. ANNUAL OPERATING W Salaries & Benefits ($340,000 increase) This amount includes merit increases and reclassifications for those employees who may qualify throughout the year, increases from CalPERS, medical, dental, and vision premiums, and the assumption that all funded positions will be filled for an entire fiscal year. The FY 2014/15 budget for merit increases for those employees who qualify throughout the year, amounts to approximately $58,000. The Salaries & Benefits budget also includes the deletion of one full -time employee and one part -time employee, as well as four proposed reclassifications of current employees. Salaries relating to CIP projects, in the amount of $285,000, will also be capitalized. The net operating costs for salaries and benefits results in a $320,000 increase from the FY 2013/14 budget. The District pays 100% of the premium cost for health, dental and vision for all full -time employees and two - thirds of the premium cost for their dependents; participates in CaIPERS (2% @ 55) for full time employees hired prior to January 26, 2012; offers employees a "4/10" work schedule; an optional 457 deferred compensation plan; a 125 Flex benefits plan; Long and Short Term Disability Insurance; Life Insurance; an Employee Assistance Program; 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 (CaIPERS), 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 2014/15. 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 CaIPERS (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 CaIPERS. 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 CaIPERS retirement by the third year of the three -year term. In FY 2012/13, these employees paid 3% of the 7% statutory CalPERS employee contribution rate to CalPERS with the District paying the remaining 4 %. In FY 2013/14, these employees paid 5% of the 7% statutory CalPERS employee contribution rate, with the District paying the remaining 2 %; and effective July 1, 2014, these employees will pay the full 7% statutory CalPERS contribution rate, with the District covering only the employer portion of the contribution. The move to employees paying the 7% statutory CalPERS employee contribution rate was offset by a Cost -of- Living Increase (COLA) of 9% over three years, beginning in FY 2012/13. This was the first COLA for employees since FY 2008/09. �- YL ANNUAL OPERATING -` Beginning on July 1, 2012, the District matched dollar for dollar the salary earned, not to exceed 2% per payroll period, of the employee's deposits into a qualified Deferred Compensation Plan for any Management or Supervisory /Confidential employee. Employees accrue 3.077 hours per pay period of vacation with increases in vacation accruals at 5, 10, 15 and 20 years. After 20 years, the maximum vacation accrual is reached at the rate of 6.922 hours per pay period. There are 26 pay periods per year. Sick leave is accrued at the rate of 3.7 hours per pay period. The District observes eleven paid holiday per year. The District 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 starting on July 1, 2014. Reserves and Funding Sources The District has ten water and sewer enterprise - related funding sources. Within the budget document 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 and Sewer Capital Projects. Both the Water Emergency and the Sewer Emergency Funds are non - restricted and were established to fund unplanned, unbudgeted emergency operations 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 five funds are the Water Restricted for Debt Service Fund, which is used to pay the Districts principal and interest payments, 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. The Maintenance Reserve, which was established to provide funding for non - scheduled capital asset repair and replacements and the Employee Liability fund. These activities require cash, checks and wire transfers on a regular basis and affect the District's cash flow. = L ANNUAL OPERATING W Summary The Water Enterprise is budgeted on an accrual basis and for FY 2014/15 reflects a loss of $2.9 million under the proposed budget, which includes a rate increase and variable water cost pass- through, and with depreciation of $5.9 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 $1.6 million at the end of the fiscal year. The Sewer Enterprise is also budgeted on an accrual basis and for FY 2014/15 reflects a loss of $802,000, 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 $543,000 at the end of the fiscal year. A comprehensive Asset Management Plan (AMP) was completed in FY 2009/10 to establish long -term needs and objectives for funding asset replacements. This study allows the Board of Directors and staff to engage more fully in funding needs, assess options for future asset replacements and establish recommendations for a component of the water rate that may partially or completely fund reserves and thereby establish financial security for the future. In FY 2011/12, the District completed a Financial Planning Model that incorporates the District's annual operating expenses, with its debt service obligations and recommendations of the AMP, along with inputs for additional Capital Projects identified by staff. This planning tool allows the District to forecast financial needs into the future and determine appropriate revenue adjustments and sources needed to complete the District's service objectives. The current budget fully funds the AMP recommendations for the second year in a row. This is yet another positive step for ensuring the future fiscal stability of the District. The coming years will continue to pose challenges for those in California's water community. Despite the fact that 2013 was the driest year on record in much of California, federal court orders continue to curtail water deliveries from Northern California due to environmental factors in the Sacramento -San Joaquin Bay Delta. In addition, the political situation in the State Capitol has made it difficult to find the compromises necessary to address these environmental challenges that contribute to the higher cost of water statewide. Through foresight, investments into the local and regional water delivery system have allowed the Yorba Linda Water District to thus far avoid having to require mandatory water conservation. The District has instead achieved its water conservation goals using voluntary measures. However, given the ominous drought situation, we anticipate amplified conservation efforts by our customers as the record dry conditions continue and the increased cost of water places a greater burden on household budgets. With that 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 organization 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. I would like to thank all the staff involved in this process for the efforts put forth in the preparation of this budget to ensure a successful outcome. 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 VLM ANNUAL OPERATING BUDGET FISCAL' Budget Overview 4.4 Resolution to Adopt Budget RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE BUDGET FOR FISCAL YEAR 2014/15 AND RESCINDING RESOLUTION NO. 13 -10 WHEREAS, the Yorba Linda Water District has prepared a one year budget for Fiscal Year 2014/15; and WHEREAS, on May 22, 2014, the proposed "Draft" Budget for Fiscal Year 2014/15 was presented and reviewed at a regular meeting of the Board of Directors of the District; and WHEREAS, the "Final" Budget for Fiscal Year 2014/15 was presented and considered by the Board of Directors at a regular meeting on June 12, 2014; and WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year 2014/15, and rescind Resolution No. 13 -10. 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 2014/15, set forth in Exhibit "A" attached hereto, is hereby approved and adopted. Section 2. The Budget for Fiscal Year 2014/15 is in full force and effect beginning July 1, 2014, and continuing until this Resolution is rescinded by the Board of Directors. Section 3. That Resolution No. 13 -10 is hereby rescinded effective July 1, 2014. PASSED AND ADOPTED this 12th day of June 2014, by the following called vote: Robert Kiley, President Yorba Linda Water District 4 GFOA Distinguished Budget Award FY 2013/14 1� 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. " r' Core Values Statement r,\ 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. Strategic Goals Statement The Government Finance Officers Association (GFOA) recommends that all governmental entities use some form of strategic planning to provide a long -term perspective for service delivery and budgeting, thus establishing logical links between authorized spending and broad organizational goals. The goals, objectives and action steps within the District's Strategic Plan were determined by the mission and vision statements and core values of the District and further established through the process initiated by the Board of Directors through a Strategic Plan Workshop. Stakeholders that participated in this process included all five Board Members, the Executive Management team and members of the Employee Productivity- Innovation - Communications (EPIC) Committee, made up of staff representatives with varied levels of experience and expertise from across all District departments. In the District's strategic planning, goals are defined as identified challenges the District would like to address. Initiatives are defined as high -level concepts or plans for resolving the identified goals. Strategies are defined as action steps to achieving the identified initiatives, which, in turn, achieve the identified goals. Five goals were identified as the most critical challenges for the District to address in the next year: Goal CP: Community Partnership 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 Brand Recognition within the C Enhance Resources for Public Information & Governmental Affairs Division .a 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 W VLM ANNUAL OPERATING BUDGET FISCAL' 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 .a I 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 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 FR 2: Increase Reserve Funding 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 FR 3: Identify and Develop Additional Revenue Options Research and Obtain Grant Funding Whenever Feasible Review Opportunities to Earn "Cash- Back" on Operating Expenses through Commercial Credit Card Accounts �j Manage Cash Flow to Maximize Investment Income FR 4: Provide n' quitable Rate Structure =1 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 independent, trusted and reliable service for more than one hundred years, yet it recognizes the importance of continual improvements to increase operational efficiency. Initiatives Strategies • Identify the Current Functionality of Existing Technology and Determine if it is Being Utilized to Full Capacity • Evaluate How Each Department Might Make Further Use of Existing Technology • Provide Support and Encourage Employee Training Improve connectivity for Computerized Maintenance and • Management System (CMMS) • Improve Internet and Intranet Access Availability by Increasing } Bandwidth • Integrate GIS with Hydraulic Model, CMMS, Valve Exercise, and Hydrant Flushing 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 VLW ANNUAL OPERATING BUDGET FISCAL' • 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 Goal SR: Service Reliability The ultimate purpose of District assets and infrastructure is to safely and reliably provide vital services to the public. Our goal is to maintain all assets for optimal continuity of District services. Effective management of assets involves monitoring asset conditions against the level of service to manage risk of failure, planning for future financial needs and anticipating uncertainties or changing levels of service. Initiatives Strategies SR 1: Work Toward Service Reliability and Efficiency 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 j=j Evaluate Alternative Water Sources SR 2: Explore Service Boundary Opportunities 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 VLM ANNUAL OPERATING BUDGET FISCAL' Strategies ce WE 1: Retain a Highly Skilled and Capable Workfor _; _;] J mi 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 J �j 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 I Implement a Program to Recognize Employees for Excellence Conduct Bi- Yearly All Hands Meetings Encourage Employee Training in Leadership and Technology 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 77 employees and one part -time staff person. 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 24,535 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 "imported water ". Approximately 50% comes from local groundwater and 50% comes from "imported water" from the Colorado River via the Colorado River 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 $294 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 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. These systems improvements will allow greater access to groundwater throughout our service area and have the potential to reduce variable costs approximately $1 million per year. 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. Historically, YLWD rates have been among the lowest in Orange County, and continue to be so for the upcoming year. In fiscal year 2011/12 and 2012/13, the District purchased 18,647.9 acre -feet and 21,788.7 acre -feet of water to provide to customers, respectively. Fiscal year 2013/14 is forecasted to provide 22,343 acre -feet. Board of Directors & Executive Staff Robert R. Kiley, President Ric Collett, Vice President Michael J. Beverage Director Phil Hawkins Director Steven R. Conklin Acting General Manager/ Engineering Manager Art Vega Acting IT Manager Gary T. Melton Director A6 John DeCriscio Operations Manager Gina Knight HR & Risk Manager Delia Lugo Finance Manager ®Yorba Linda Water District Lt Mattaaer FIR & RIN Manager S.C.A.DA. Info. Svstems ��, Administrator Administrator A�btgt Safety & Training Aneb�Sf Coordinator Instrumentatbn Into. Svstems Svstems Analyst/ Technician Technician 1 Programmer Board of Olrectors General sr. ACOMO M castor ter Svc. Meter Services sup"'11111017 Lead Accounting Customer Srv. Meter Reader Assistant 1/11 Rep. l /11 /111 1 /It 2 FTE 4 FTE 3 FTE Organization Chart FY 2014/15 Total: 77 FTE positions budgeted 1 part -time position (non- benefited) MIMIC Inr°rm riw officer Public Affairs Specialist Executive Becretary Records Management Specialist Sr. Project Water Quality Construction Manager Engineer Project Supervisor WO Technician 1 111 Sr. Construction Associate EoP. Technician Inspector Engineer II 1 FTE HR Technician 2 FTE Construction Inspector Operations Manager Sr. Fleet Office Operations/ Water Mamt. Water Mechanic Clerk Warehouse Assist. Superintendant Production Superintendant Mechanic Sr. Maintanance 11 /III Dist. Operator Facilities Sr. Plant 2 FTE 4 FTE Maintenance Operator Maintanance Dist. Maintanance Dist. Maintanance Plant Operator Operator 111 Operator II Worker 1 II 4 FTE 8 FTE 9 FTE 3 FTE Job Classification Management Part -Time Supervisory /Confidential Bargaining Unit Legend r•1 1,61 W N� rh O� 0 rt w = —Lo ANNUAL OPERATING W Personnel Trends by Position Proposed Position/Title 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 ADMINISTRATION Assistant General Manager 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 Assistant - - - - 0.5 Public Information Officer 1 1 1 1 1 Records Management Clerk # - - - 0.5 - Records Management Specialist # - - - - 1 Total Administration 5.5 5 5 5 5.5 ENGINEERING Associate Engineer - - - - 1 Contruction Inspector 1 1 1 1 1 Contruction Project Supervisor - - - 1 1 Engineering Manager 1 1 1 1 1 Engineering Secretary 1 1 1 1 - Engineering Technician II 3 2 2 2 2 Project Coordinator - - - 1 - Project Engineer 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 11 11 11 10 Under filled with Water Quality Technician I prior to FY 2013/14 # Legislative Affairs Intern replaced with Records Management Specialist position Changes and Trends: The Assistant General Manager position has not been filled since FY 2011 -12 and the part -time Records Management Clerk position that replaced an unfilled Legislative Affairs Intern position was changed to a full -time position. The Engineering Secretary position was replaced with an Operations Clerk position. The Public Information Intern position has been replaced by a Public Information Assistant, both part -time positions. = -� ANNUAL OPERATING W i - Position/Title FINANCE Accounting Assistant I Accounting Assistant II Customer Service Rep I Customer Service Rep 11 Customer Service Rep III Customer Service Supervisor Finance Director Finance Manager Meter Reader I Meter Reader 11 Meter Services Lead Senior Accountant Storekeeper Total Finance HUMAN RESOURCES Human Resources Analyst Human Resources Clerk Human Resource & Risk Mananger Human Resource Technician Personnel Technician Safety & Training Coordinator Total Human Resources Proposed 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - 1 1 1 1 2 2 2 2 2 2 1 1 1 1 1 2 2 2 2 1 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 15 14 14 14 13 1 1 1 1 1 - - - 0.5 - 1 1 1 1 1 - - - 1 1 1 1 1 - - - - 1 1 3 3 3 4.5 4.0 Changes and Trends: The Personnel Technician position had a title change to Human Resources Technician. The Finance Director position had a title change to Finance Manager. A Safety & Training Coordinator position was added for FY 2013 -14. The Human Resources Clerk position was eliminated as was one Meter Reader I position. = -LM ANNUAL OPERATING W OPERATIONS Chief Plant Operator Facilities Maintenance Maintenance Distribution Operator II Maintenance Distribution Operator III Maintenance Worker I Mechanic II Mechanic III Office Clerk Operations Assistant Operations/ Warehouse Assistant Operations Assistant/Storekeeper Operations Manager Plant Operator II Sr Maintenance Distribution Operator Senior Fleet Mechanic Senior Plant Operator Water Maintenance Superintendant Water Production Superintendant Total Operations DISTRICT TOTAL (FTE) 1 1 1 1 - Proposed Position/Title 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 INFORMATION TECHNOLOGY 8 8 4 4 4 GIS Administrator 1 1 1 1 - GIS Analyst - - - - 1 GIS Technician 0.5 0.5 0.5 0.5 - Information Systems Administrator 1 1 1 1 1 Information Systems Technician 1 1 1 1 1 1 Information Systems Technician 11 1 1 1 - - Instrumentation Technician 1 1 1 1 1 IT Director 0.5 - - - - IT Manager - 1 1 1 1 SCADA Administrator 1 1 1 1 1 System Analyst/ Programmer - - - 1 1 Total Information Technology 6 6.5 6.5 7.5 7.0 OPERATIONS Chief Plant Operator Facilities Maintenance Maintenance Distribution Operator II Maintenance Distribution Operator III Maintenance Worker I Mechanic II Mechanic III Office Clerk Operations Assistant Operations/ Warehouse Assistant Operations Assistant/Storekeeper Operations Manager Plant Operator II Sr Maintenance Distribution Operator Senior Fleet Mechanic Senior Plant Operator Water Maintenance Superintendant Water Production Superintendant Total Operations DISTRICT TOTAL (FTE) 1 1 1 1 - 1 1 1 1 1 7 8 8 8 8 4 4 4 4 4 8 9 9 9 9 1 1 1 1 1 1 1 1 1 1 - 1 1 1 1 1 3 3 3 3 3 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 35 37 37 37 38 76.5 76.5 76.5 79.0 77.5 Changes and Trends: One additional Maintenance Worker I position was added during FY 2011 -12 because of additional sewer lines transferred to YLWD from the City of Yorba Linda. The Office Clerk position replaced the Engineering Secretary position. Personnel Trends by Department ao 70 60 50 40 30 20 10 0 DISTRICT TOTALS 77.5 77.5 77.5 79 77.5 Zuiir11 2011 -12 2012 -13 201314 Proposed 201415 ■ Administration ■ Engineering ■ Finance ■ Human Resources ■ Information Technology ■ operations Proposed Department 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 Administration 5.5 5 5 5 5.5 Engineering 12 11 11 11 10 Finance 15 14 14 14 13 Human Resources 3 3 3 4.5 4 Information Technology 7 7.5 7.5 7.5 7 Operations 35 37 37 37 38 ao 70 60 50 40 30 20 10 0 DISTRICT TOTALS 77.5 77.5 77.5 79 77.5 Zuiir11 2011 -12 2012 -13 201314 Proposed 201415 ■ Administration ■ Engineering ■ Finance ■ Human Resources ■ Information Technology ■ operations 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. Though each financial policy is reviewed annually, only the District's Investment Policy is updated and adopted by the Board on an annual basis. The full Financial Policies can be found on page 195. Operating Budget Policy The District's budget is developed in accordance with the priorities which are linked to the District's financial and strategic plans set forth in the District's mission and long -term goals and objectives. These are found in the District's comprehensive master plans, the long term financial plan, the needs of the community, and federal and state laws. The District operating and capital budget is developed on an annual basis. Operating and capital appropriations are approved by the District's Board of Director's. A balanced budget is defined as the amount of budgeted expenditures is equal to or less than the amount of budgeted revenue, plus available fund balance. The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The budgeting for District expenses, with the exception of supplies and services, is on an accrual basis. Supplies and services are budgeted on a cash basis. The District is operated as an enterprise fund, an accounting entity which finances and accounts for the acquisition, operation, and maintenance of governmental facilities and services. It is the intention of the District to recover the full costs of providing maintenance, goods, and /or services through the collection of user charges. Revenue and Expenditure Policy Budgeted revenues are estimated conservatively using an objective and analytical approach using historical trends and current information to maintain consistency, reliability, and reasonableness. The District's expenditures reflect the Board of Directors' and staff commitment to serve present and future customers with reliable public services. The Board and staff believe that prudent expenditure planning and accountability will ensure fiscal stability. = L ANNUAL OPERATING W 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. 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 It is the policy of the District to invest funds in a manner that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the District and conforming to all statutes governing the investment of the District funds. The policy follows the "prudent investor" standard of the California Government Code Section 53600.3 and is updated and formally adopted by the District on an annual basis. = W Lo ANNUAL OPERATING Basis of Budgeting & Accounting The accounting for the District is kept on an accrual basis. Revenues are recognized when earned, and expenses are recognized when incurred. The budgeting for District expenses, with the exception of supplies and services, is on the accrual basis. Supplies and services are budgeted on the cash basis of accounting. The District is operated as an enterprise fund, which is an accounting entity that finances and accounts for the acquisition, operation and maintenance of governmental facilities and services. It is the District's intention to recover the majority of the costs of the acquisition, operation, and maintenance of governmental facilities through user - charges and the receipt of property taxes. Budget Controls When the Fiscal Year 2014 -15 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 2014. 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. = L ANNUAL OPERATING W Review and adjustments to the capital budget appropriations are also recommended throughout the fiscal year. Project managers may find that some projects contemplated at the beginning of the fiscal year have been delayed or accelerated due to changes in conditions, weather and /or economics, and new projects may be added to meet future demands, goals and objectives. Any recommended changes to the Capital Improvement Budget would be brought to the Board of Directors for approval. Resolutions adopted by the Board of Directors are required for authorizing positions in the service of the District and for setting salary ranges for those authorized positions. The General Manager is authorized to use savings from vacant authorized positions to retain contract labor to meet District personnel needs. The General Manager is also authorized to fill an approved and budgeted position that is vacated during the term of the budget year with a new employee at an equal or lower classification. The budget may need to be modified to reflect labor and benefit agreements. These changes would be approved by the Board of Directors. As defined by the District's Purchasing Policy, in the event that the General Manager determines that an emergency exists and requires immediate action, the General Manager shall have the power, without prior Board action, to enter into contracts and agreements and expend funds on behalf of the District beyond the final approved fiscal year budget in an amount not to exceed $100,000. Those amounts shall be ratified at the next meeting or at the earliest special meeting that can be called. Amounts in excess of $100,000 require Board of Director approval and shall be formally ratified at the next meeting or at the earliest special meeting that can be called. 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, as shown on the following Budget Calendar. Each year, the Finance Department prepares expenditure budget worksheets for distribution to key staff. These worksheets give staff the necessary information to project their department's budgets by category. Included in the worksheets are the past year's actual expenses, current year transactions, and projected current year end balances. Based on the information provided, and accounting for any changes for anticipated purchases, the requested amounts from the worksheet are entered into the budget system and compared to last year's budget. Any substantial budget change needs to be justified by the respective departments. The Human Resources Department reviews the employee positions and wages of the District. The Human Resources Department makes a recommendation to the General Manager if new positions need to be added, changes in job descriptions need to occur, or reclassifications of position are required. The results of this review are presented to the Personnel -Risk Management Committee for further input and approval. The approved personnel recommendations are entered into the budget system for inclusion in the budget document. The Engineering Department prepares a list of CIP projects to be presented to the Planning- Engineering- Operations Committee. Based on recommendations from staff, each CIP project will be prioritized based on necessity. The Engineering Department will also update the future project list and will incorporate cost changes due to construction cost increases or a change in the scope of the project. The method to determine the revenue projections takes into account factors such as projected growth, required conservation, historical activity, 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, 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. = � ANNUAL OPERATING W DATE BOARD /COMMITTEE JANUARY January 21, 2014 Manager's Meeting January 28, 2014 Finance - Accounting Committee FEBRUARY Budget Calendar SCHEDULE Discuss Budget Calendar and Process Personnel & Capital budget discussion Review the Budget Calendar February 4, 2014 Manager's Meeting Personnel & Capital budget discussion Revenues Discussion Mid -Year Budget -to- Actuals Distribution February 4, 2014 Planning- Engineering- Operations Committee Capital Improvement Projects budget (v 0.5) February 10, 2014 Exec - Admin- Organizational Committee Board of Directors and Administration budget (v 1.0) February 24, 2014 Finance - Accounting Committee Finance budget (v 1.0), Operating revenues (v 1.0) Reserve policy analysis (v 1.0) MARCH March 3, 2014 Public Affairs- Communications -Tech Commits IT & Public Affairs budget (v 1.0) March 6, 2014 Planning- Engineering- Operations Committee Engineering and Operations budget (v 1.0) Capital Improvement Projects budget (v 1.0) (w/3 -5 Year Cash Flow) *` Complete Salaries & Benefits in Conjuction with Cash Flow March 10, 2014 Exec- Admin- Organizational Committee Board of Directors and Administration budget (v 2.0) March 11, 2014 Personnel -Risk Mgmt Committee Labor and benefits (v 1.0), HR budget (v 1.0) March 17, 2014 Finance - Accounting Committee Finance budget (v 2.0), Reserve policy analysis (v 2.0) March 17, 2014 Board Workshop #1 Draft Capital Improvement Projects budget 3:00 PM Draft Engineering and Operations budget Draft Authorized Positions and Labor /Benefits budget APRIL April 7, 2014 Public Affairs- Communications -Tech Commits IT & Public Affairs budget (v 2.0) April 8, 2014 Personnel -Risk Mgmt Committee HR budget (v 2.0), Labor and Benefits (v 2.0) April 21, 2014 Board Workshop #2 Draft Board of Directors and Administration budget 3:00 PM Draft IT & Public Affairs budget Draft Finance budget Draft HR budget MAY May 22, 2014 Board of Directors Draft Budget (Full Board) May 20, 2014 Finance - Accounting Committee Draft reserve policy JUNE June 12, 2014 Board of Directors Final Budget (Full Board) Reserve policy adoption JULY July 1, 2014 Email adopted budget to Wells Fargo Bank contact - for compliance = —LM ANNUAL OPERATING W 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 4% in FY 2014/2015. Water operating revenues are estimated to increase by 4% to $29,169,647 in FY 2014/15. Sewer operating revenues are estimated to increase by 4% to $1,856,066 in FY 2014/15. Water Operating Fund Potable Water sales are the largest source of District revenues, with the majority of sales to residential customers. In previous years, mild weather conditions, less that desirable economic conditions, and a strong water conservation message have resulted in lower consumption demand and thus lower than anticipated water revenues. The current year, however, is the driest year on record for much of California and despite continued strong conservation messages, consumption and water revenues will greatly exceed budgeted numbers. It is projected that the coming year will continue along the same extremely dry trend and water use levels will remain consistently high as homeowners attempt to maintain green lawns and full swimming pools. Because of the California State Governor's official Declaration of Drought, earlier in the current fiscal year, the District is budgeting for a voluntary 5% conservation reduction of current forecasted usage. 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 $2.70 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 21,980 acre feet (AF) in FY 2014/15. The chart below displays the historical trend of water revenue. ANNUAL OPERATING BUDGET FISCAL` Revenue from Service Charges is a calculation of the projected number of service connections for FY 2014/15 (24,535) multiplied by the proposed fixed service charge based on meter size. The following chart displays this information. Water Rate -AWKWe Effective Date FY 12/13 7/1/2012 FY 13/14 7/1/2013 FY 14/15 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 $2.70 /hcf Other Income Revenues, which include but are not limited to backflow charges, unmetered jumpers, construction meters, new account fees, and other income, are projected based upon historical activity and current economic conditions. Interest Income for the water operating funds is projected based on an average yield of 0.5% on the District's portfolio. Property Tax Income is projected based on the assumptions of the Orange County Tax Assessor. The District anticipates receiving 97% of its share of the ad valorem tax revenue, which will result in a 1 % increase when compared to the previous year. Other Non - Operating Revenue, which include but are not limited to annexation fees, rental income, and other sources, are projected based upon historical activity and current economic conditions. $3,500,000 Other Water Revenue $3,000,000 538,468 $687,391 $2,500,000 $574,424 $501,200 $2,000,000 0 $1,273' 7$1,350,0 $1,500,000 $1,340,916 $1,264,672 $1,283,642 $1,000,000 0 $102,000 $121,210 $75,000 $100,0001 $500,000 $865,113 J $681,07 $670,003 $0 FY 2011/12 Actual FY 2012/13 Actual FY 2013/14 Budget FY 2013/14 Forecast FY 2014/15 Budget ■ Other Operating Revenue ■ Interest Income ■ Property Taxes ■ Other Non - Operating 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. VLM ANNUAL OPERATING BUDGET FISCAL' $2'500•000 Sewer Charge Revenue $2,171,058 $2,000,000 $1,831,489 $1,807,952 $1,892,400 $1,891,916 $1,500,000 $1.000,000 $500,000 $0 FY 2011 /12 Actual FY 2012 /13 Actual FY 2013/14 Budget FY 2013 /14 Forecast FY 2014/15 Budget 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. $+$0000 Other Sewer Charge Revenue $400,000 $267,186 $351,000 $300Ao0 $251,010 $200000 $150,000 - 537,500 $100,000 $23,659 $23,925 $14,430 $8,300 $7,950 $50•oDo $94,408 $16,359 8 $0 - -� -10 EVA FY 2011 /12 Actual FY 2012 /13 Actual FY 2013/14 Budget FY 2013 /14 Forecast FY 2014/15 Budget ■ Other Operating revenue ■ Interest Income ■ Other Income IrLo 17M ANNUAL OPERATING Jt 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 14/15) Water Sales Service Charges Property Tax Interest Income Other Income Sewer Service Charges Water Fund Sewer I Fund District Operations & Maintenance Activities = -Lo ANNUAL OPERATING W Rate History * Based on a 1 inch meter Monthly Commodity Minimum Allowance Charge Monthly Year (CCF) (CCF) Charge 1960 20 $0.06 $3.50 1961 20 $0.06 $3.50 1962 20 $0.06 $3.50 1963 20 $0.06 $3.50 1964 10 $0.10 $3.50 1965 10 $0.10 $3.50 1966 10 $0.10 $3.50 1967 10 $0.10 $3.50 1968 8 $0.12 $3.50 1969 6 $0.14 $3.50 1970 6 $0.16 $3.50 1971 6 $0.16 $3.50 1972 6 $0.16 $3.50 1973 6 $0.18 $3.50 1974 6 $0.20 $3.50 1975 6 $0.20 $3.50 1976 6 $0.24 $3.50 1977 6 $0.24 $3.50 1978 6 $0.27 $3.50 1979 6 $0.27 $3.50 1980 6 $0.30 $3.50 1981 6 $0.30 $3.50 1982 6 $0.30 $3.50 1983 6 $0.30 $3.50 1984 6 $0.39 $3.50 1985 5 $0.45 $4.00 1986 5 $0.57 $5.85 * Based on a 1 inch meter Monthly Commodity Minimum Allowance Charge Monthly Year (CCF) (CCF) Charge 1987 5 $0.59 $5.95 1988 5 $0.59 $5.95 1989 5 $0.59 $5.95 1990 5 $0.61 $6.15 1991 5 $0.66 $6.65 1992 5 $0.76 $7.65 1993 0 $0.92 $4.65 1994 0 $0.98 $4.65 1995 0 $0.98 $4.95 1996 0 $0.98 $4.95 1997 0 $0.98 $4.95 1998 0 $0.98 $4.95 1999 0 $0.98 $4.95 2000 0 $1.03 $5.20 2001 0 $1.03 $5.20 2002 0 $1.13 $5.70 2003 0 $1.33 $5.70 2004 0 $1.33 $6.70 2005 0 $1.57 $7.92 2006 0 $1.57 $7.92 2007 0 $1.57 $7.92 2008 0 $1.79 $8.35 2009 0 $2.52 $10.20 2010 0 $2.52 $11.73 2011 0 $2.52 $11.73 2012 0 $2.57 $12.60* 2013 0 $2.64 $14.67* 2014 0 $2.70 $16.77* Average Residential Monthly Bill by Year $90.00 Water Sewer Service Service Consumption $70.00 Charge 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 FY 14/15 $60.21 $5.50 $16.77 $90.00 $80.00 $70.00 $14.67 $12.60 $10.20 $11.73 $11.73 $60.00 $50.00 $8.35 $8.35 $8.35 $7.92 $40.00 $7.92 $30.00 $20.00 $10.00 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11 /12 FY 12/13 FY 13/14 FY 14/15 $44.42 $46.43 $48.86 $53.77 $53.77 $71.90 $73.43 $73.43 $75.41 $79.04 $82.48 ■ Water Consumption ■ Sewer Service Service Charge 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. 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. Aview of the District from atop Fairmont Reservoir 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. 4 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. $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 City of Yorba Linda Median Comparisons City of Yorba Linda Orange County State of California ■ Median Family Income ■ Median Home Value 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. E 1 City of Yorba Linda Demographics 1 %\ 1% • White • Hispanic Asian • African - American • Other 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. I-Z_ �ANNUAL OPERATIN Ten Largest Customers Current and Three Years Ago FY 2013/14 Annual % of Actual Customer Name Business Type Revenues Revenues 1 Cityof Yorba Linda Government $ 1,860,227 6.35% 2 Placentia Yorba Linda USD Government $ 267,442 0.98% 3 Fairmont Hill Community Assoc. Homeowner's Assoc. $ 110,976 0.41% 4 Yorba Linda Villages Homeowner's Assoc. $ 108,023 0.40% 5 Archstone Yorba Linda Homeowner's Assoc. $ 99,849 0.37% 6 The Hills at Yorba Linda Homeowner's Assoc. $ 94,025 0.34% 7 Kerrigan Ranch II Community Assoc. Homeowner's Assoc. $ 53,825 0.20% 8 Lake Park Mobile Home Community Homeowner's Assoc. $ 59,401 0.22% 9 Rancho Dominguez Community Homeowner's Assoc. $ 59,149 0.22% 10 Mt. San Antonio Home Owners Assoc. Homeowner's Assoc. $ 55,728 0.20% $ 2,768,643 9.49% FY 2010/11 Annual % of Actual Customer Name Business Type Revenues Revenues 1 City of Yorba Linda Government $ 1,614,790 6.82% 2 Placentia Unified School Government $ 277,694 1.17% 3 Archstone Yorba Linda Homeowner's Assoc. $ 98,560 0.42% 4 Fairmont Hill Community Assoc. Homeowner's Assoc. $ 91,999 0.39% 5 Yorba Linda Villages Homeowner's Assoc. $ 82,166 0.35% 6 The Hills at Yorba Linda Homeowner's Assoc. $ 80,246 0.34% 7 Kerrigan Ranch II Community Assoc. Homeowner's Assoc. $ 63,948 0.27% 8 Lake Park Mobile Home Community Homeowner's Assoc. $ 59,555 0.25% 9 Woodgate Condominiums Homeowner's Assoc. $ 57,622 0.24% 10 Rancho Dominguez Community Assoc. Homeowner's Assoc. $ 50,645 0.21% $ 2,477,226 10.46% VLW ANNUAL OPERATING BUDGET FISCAL' FINANCIAL SUMMARIES VLM ANNUAL ©PERATING BUDGET FiSCaL Total Revenue and Expenses (Water & Sewer) Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape /Irrigation) Service Charges Sewer Charge Revenue Sewer Parcel Assessments Other Operating Revenue Total Operating Revenue Revenue (Non- Operating): Interest Property Tax Other Non - Operating Revenue Total Non - Operating Revenue Total Revenue Expenses (Operating): Variable Costs Salary Related Expenses Reduction for Capital Project Labor Salary Related Expenses Total Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non - Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Expenses Supplies & Services Sub -Total Total Operating Expenses Expenses (Non- Operating): Interest Expense Other Expense Total Non - Operating Expenses Total Expenses Net Income Before Capital Contributions Capital Contributions FY 2011112 FY 2012113 FY 2013/14 FY 2013/14 FY 2014/15 Actual Actual Budget Forecast Budget $16,120,680 $16,596,680 $ 1,820,913 $ 1,890,269 $ 3,687,643 $ 4,161,528 $ 3,369,437 $ 3,721,462 $ 1,580,369 $ 1,561,850 $ 205,435 $ 200,189 $ 848,238 $ 723,577 $27,632,716 $28,855,555 $ 277,137 $ 137,569 $ 1,273,855 $ 1,340,916 $ 805,654 $ 588,854 $ 2,356,646 $ 2,067,339 $29,989,362 $30,922,894 $12,275,853 $13,509,336 $ 6,979,088 $ 7,225,729 $ 6,979,088 $ 7,225,729 $ 214,165 $ 199,150 $ 437,875 $ 476,369 $ 125,732 $ 133,426 $ 58,432 $ 57,402 $ 154,146 $ 188,354 $ 228,805 $ 257,274 $ 504,352 $ 752,538 $ 12,972 $ 21,423 $ 532,933 $ 457,663 $ 111,375 $ 182,845 $ 46,077 $ 42,343 $ 907,959 $ 906,818 $ 39,030 $ 25,106 $ 20,488 $ 25,461 $ 22,995 $ 36,383 $ 72,027 $ 92,333 $ 321,756 $ 367,510 $ 3,811,119 $ 4,222,398 $23,066,060 $24,957,463 $ 1,626,190 $ 1,781,416 $ 108,984 $ 228,364 $ 1,735,174 $ 2,009,780 $24,801,234 $26,967,243 $ 5,188,127 $ 3,955,651 $17,214,139 $ 1,174,673 $16,217,590 $17,661,221 $17,154,552 $ 2,020,223 $ 2,103,007 $ 2,074,097 $ 4,794,156 $ 4,738,935 $ 4,792,995 $ 4,468,716 $ 4,336,450 $ 4,478,000 $ 1,550,530 $ 1,556,764 $ 1,605,292 $ 200,797 $ 200,797 $ 201,000 $ 717,749 $ 954,156 $ 719,777 $29,969,760 $31,551,329 $31,025,713 $ 87,000 $ 110,300 $ 112,000 $ 1,264,672 $ 1,350,000 $ 1,283,642 $ 509,150 $ 724,891 $ 533,525 $ 1,860,822 $ 2,185,191 $ 1,929,167 $31,830,583 $33,736,520 $32,954,880 $13,767,658 $14,721,591 $14,928,972 $ 8,169,873 $ 7,841,377 $ 8,509,812 $ (265,000) $ (257,678) $ (285,000) $ 7,904,873 $ 7,583,700 $ 8,224,812 $ 305,200 $ 189,331 $ 542,840 $ 551,268 $ 170,730 $ 195,804 $ 72,335 $ 78,096 $ 167,365 $ 172,532 $ 299,240 $ 332,971 $ 587,775 $ 767,110 $ 25,150 $ 15,088 $ 479,150 $ 354,337 $ 137,950 $ 117,364 $ 46,150 $ 40,180 $ 785,210 $ 601,944 $ 71,160 $ 32,524 $ 52,450 $ 28,411 $ 25,000 $ 31,203 $ 90,800 $ 34,534 $ 367,149 $ 381,290 $ 4,225,654 $ 3,923,987 $25,898,185 $26,229,277 $ 1,815,317 $ 1,733,122 $ 76,400 $ 44,263 $ 1,891,717 $ 1,777,385 $27,789,902 $28,006,662 $ 4,040,680 $ 5,729,858 $ 350,819 $ 779,000 $ 294,894 $ 560,700 $ 186,830 $ 78,065 $ 186,190 $ 75,000 $ 313,340 $ 658,125 $ 24,710 $ 442,150 $ 152,000 $ 40,475 $ 711,610 $ 65,180 $ 46,500 $ 40,000 $ 90,800 $ 358,400 $ 4,324,969 $ 27,478,753 $ 1,780,793 $ 72,000 $ 1,852,793 $29,331,545 $ 3,623,335 Net Income Before Depreciation $17,402,266 $ 5,130,324 $ 4,391,499 $ 6,508,858 $ 3,623,335 Depreciation $ 6,291,786 $ 6,884,213 $ 6,897,941 $ 7,270,308 $ 7,337,500 Income (Loss) $11,110,480 $ (1,753,889) $ (2,506,442) $ (761,450) $ (3,714,165) 1� Total Revenue and Expenses (Water & Sewer), Continued $40,[00,00( $35,000,00( $30,000,00( $25,000,00( $20,000,00( $15,000,00( $10,000,00( $5,000,(10( Total Revenues & Expenses (Does not include depreciation expense) $32,954,880 FY 2011/12 Actual FY 2012/13 Actual FY 2013/14 Budget FY 2013/14 Forecast FY 2014/15 Budget FY 2013/14 Total Revenue Total Revenue —1 —Total Expenses ■ Water Revenue ■ Sewer Revenue • S,—e Charges • Interest • property Taa • Other Revenue Total: $32,954,860 FY 2013/14 Total Expenses • Depreciation • Variable W!L!! COSh • 5elaries &Sen.% ■ Supplies &Services • Lony Tenn Debt • Other Expense Total: $29,331,545 Total Revenue and Expenses (Water) FY 2011/12 FY 2012/13 FY 2013/14 FY 2013/14 FY 2014/15 Actual Actual Budget Forecast Budget Revenue (Operating): Water Revenue (Residential) $16,120,680 $ 16,596,680 $16,217,590 $ 17,661,221 $17,154,552 Water Revenue (Commercial & Fire Det.) $ 1,820,913 $ 1,890,269 $ 2,020,223 $ 2,103,007 $ 2,074,097 Water Revenue (Landscape /Irrigation) $ 3,687,643 $ 4,161,528 $ 4,794,156 $ 4,738,935 $ 4,792,995 Service Charges $ 3,369,437 $ 3,721,462 $ 4,468,716 $ 4,336,450 $ 4,478,000 Other Operating Revenue $ 753,830 $ 684,916 $ 681,074 $ 865,113 $ 670,003 Total Operating Revenue $25,752,503 $ 27,054,855 $28,181,759 $ 29,704,725 $29,169,647 Revenue (Non- Operating): Interest $ 253,478 $ 121,210 $ 75,000 $ 102,000 $ 100,000 Property Taxes $ 1,273,855 $ 1,340,916 $ 1,264,672 $ 1,350,000 $ 1,283,642 Other Non - Operating Revenue $ 538,468 $ 574,424 $ 501,200 $ 687,391 $ 521,600 Total Non - Operating Revenue $ 2,065,801 $ 2,036,550 $ 1,840,872 $ 2,139,391 $ 1,905,242 Total Revenue $27,818,304 $ 29,091,405 $30,022,631 $ 31,844,116 $31,074,889 Expenses (Operating): Variable Water Costs (G.W., Import & Power) $12,275,853 $ 13,509,336 $13,767,658 $ 14,721,591 $14,928,972 Salary Related Expenses $ 6,125,692 $ 6,390,207 $ 7,237,204 $ 6,904,763 $ 7,628,522 Reduction for Capital Project Labor $ - $ - $ (250,000) $ (250,000) $ (265,050) Salary Related Expenses Total $ 6,125,692 $ 6,390,207 $ 6,987,204 $ 6,654,763 $ 7,363,472 Supplies & Services Communications $ 199,032 $ 186,573 $ 283,371 $ 176,252 $ 273,786 Contractual Services $ 407,877 $ 442,969 $ 504,089 $ 512,101.60 $ 521,451 Data Processing $ 116,676 $ 124,249 $ 158,779 $ 185,689.20 $ 173,752 Dues & Memberships $ 53,650 $ 53,262 $ 67,021 $ 72,601.20 $ 72,321 Fees & Permits $ 146,445 $ 173,052 $ 152,224 $ 157,959.60 $ 169,437 Board Election $ - $ - $ - $ - $ 69,750 Insurance $ 212,136 $ 242,338 $ 278,293 $ 309,663.60 $ 291,406 Materials $ 483,301 $ 734,474 $ 568,676 $ 700,435.60 $ 579,369 District Activities, Emp Recognition $ 12,066 $ 20,053 $ 23,390 $ 14,038.80 $ 22,980 Maintenance $ 398,747 $ 353,309 $ 357,243 $ 268,305.60 $ 329,546 Non - Capital Equipment $ 94,576 $ 164,430 $ 121,534 $ 98,556 $ 132,525 Office Expense $ 42,245 $ 39,441 $ 42,920 $ 32,631.60 $ 37,642 Professional Services $ 873,650 $ 876,546 $ 747,785 $ 575,798.40 $ 672,197 Training $ 34,710 $ 19,741 $ 64,403 $ 26,054.40 $ 58,571 Travel & Conferences $ 19,194 $ 23,883 $ 48,389 $ 26,484 $ 42,129 Uncollectible Accounts $ 21,833 $ 32,089 $ 23,250 '$ 26,912.80 $ 37,200 Utilities $ 66,904 $ 85,903 $ 83,700 $ 31,268.40 $ 83,700 Vehicle Expenses $ 278,209 $ 318,240 $ 321,250 $ 320,116.80 $ 281,139 Supplies & Services Sub -Total $ 3,461,250 $ 3,890,552 $ 3,846,315 $ 3,534,870 $ 3,848,902 Total Operating Expenses $21,862,795 $ 23,790,095 $24,601,177 $ 24,911,223 $26,141,346 Expenses (Non- Operating) Interest on Long Term Debt $ 1,625,865 $ 1,781,416 $ 1,815,317 $ 1,733,122 $ 1,780,793 Other Expense $ 90,485 $ 228,364 $ 70,400 $ 44,263 $ 72,000 Total Non - Operating Expenses $ 1,716,350 $ 2,009,780 $ 1,885,717 $ 1,777,385 $ 1,852,793 Total Expenses $23,579,145 $ 25,799,875 $26,486,894 $ 26,688,608 $27,994,139 Net Income (Loss) Before Capital Contributions $ 4,239,159 $ 3,291,530 $ 3,535,737 $ 5,155,508 $ 3,080,750 Transfers (To) /From $ (5,085,111) $ - $ - $ - $ - Capital Contributions $ 98,241 $ 711,319 $ - $ 649,000 $ - Net Income (Loss) Before Depreciation $ (747,711) $ 4,002,849 $ 3,535,737 $ 5,804,508 $ 3,080,750 Depreciation $ 5,359,086 $ 5,580,026 $ 5,598,640 $ 5,946,910 $ 5,992,500 Income (Loss) $ (6,106,797) $ (1,577,177) $ (2,062,903) $ (142,402) $ (2,911,750) Total Revenue and Expenses (Water), Continued ,35,000,000 Water Revenues & Expenses (Does not include ,30,000,000 $28,839,612 $26,369,939 $27,500,685 $24,998,673 25,000,000 $24,601, 77 $23,790,095 20,000,000 $21,862,795 ,15,000,000 10,000,000 $5,000,000 $0 $28,499,644 23 FY 2011/12 Actual FY 2012/13 Actual FY 2013/14 Budget FY 2013/14 FY 2014/15 Budget Forecast Total Water Revenues —11—Total Water Expenses FY 2014/15 Revenues (Water) ■ Water Sales ■ Service Charges ■ Other Operating Revenue ■ interest income ■ Property Taxes ■ Other Non- Operating Total: $31,074,889 FY 2014/15 Expenses (Water) • Depreciation & Amortization • Variable Water Costs • Salary and Related Expenses • Supplies & Services • Interest on Long Term Debt • Other Expenses Total: $27,994,139 ANNUAL OPERATING W Total Revenue and Expenses (Sewer) Salary Related Expenses FY 2011/12 FY 2012/13 FY 2013/14 FY 2013/14 FY 2014/15 $ 881,290 Actual Actual Budget Forecast Budget Revenue (Operating): $ (19,950) Salary Related Expenses Total $ 853,396 $ 835,522 Sewer Charge Revenue $ 1,580,369 $ 1,561,850 $1,550,530 $1,556,764 $1,605,292 Sewer Parcel Assessments $ 205,435 $ 200,189 $ 200,797 $ 200,797 $ 201,000 Other Operating Revenue $ 94,408 $ 38,661 $ 36,675 $ 89,043 $ 49,774 Total Operating Revenue $ 1,880,213 $ 1,800,700 $1,788,002 $1,846,604 $1,856,066 Revenue (Non- Operating): $ 9,056 $ 9,177 $ 11,951 $ 10,115 Interest $ 23,659 $ 16,359 $ 12,000 $ 8,300 $ 12,000 Other Non - Operating Revenue $ 267,186 $ 14,430 $ 7,950 $ 37,500 $ 11,925 Total Non - Operating Revenue $ 290,845 $ 30,789 $ 19,950 $ 45,800 $ 23,925 Total Revenue $ 2,171,058 $ 1,831,489 $1,807,952 $1,892,404 $1,879,991 Expenses (Operating): $ 14,936 $ 20,947 $ 23,308 $ 21,934 Materials Variable Water Costs (G.W., Import & Power) $ - $ - $ - $ - $ - Salary Related Expenses $ 853,396 $ 835,522 $ 932,669 $ 936,615 $ 881,290 Reduction for Capital Project Labor $ - $ - $ (15,000) $ (7,678) $ (19,950) Salary Related Expenses Total $ 853,396 $ 835,522 $ 917,669 $ 928,937 $ 861,340 Supplies & Services Communications $ 15,133 $ 12,577 $ 21,829 $ 13,079 $ 21,108 Contractual Services $ 29,998 $ 33,400 $ 38,751 $ 39,167 $ 39,249 Data Processing $ 9,056 $ 9,177 $ 11,951 $ 10,115 $ 13,078 Dues & Memberships $ 4,782 $ 4,140 $ 5,314 $ 5,495 $ 5,744 Fees & Permits $ 7,701 $ 15,302 $ 15,141 $ 14,573 $ 16,753 Board Election $ - $ - $ - $ - $ 5,250 Insurance $ 16,668 $ 14,936 $ 20,947 $ 23,308 $ 21,934 Materials $ 21,051 $ 18,064 $ 19,099 $ 66,674 $ 78,756 District Activities, Emp Recognition $ 907 $ 1,370 $ 1,761 $ 1,049 $ 1,730 Maintenance $ 134,185 $ 104,354 $ 121,908 $ 86,032 $ 112,605 Non - Capital Equipment $ 16,800 $ 18,415 $ 16,417 $ 18,808 $ 19,475 Office Expense $ 3,832 $ 2,902 $ 3,231 $ 7,548 $ 2,833 Professional Services $ 34,310 $ 30,272 $ 37,425 $ 26,146 $ 39,413 Training $ 4,320 $ 5,365 $ 6,757 $ 6,469 $ 6,609 Travel & Conferences $ 1,294 $ 1,578 $ 4,062 $ 1,927 $ 4,371 Uncollectible Accounts $ 1,162 $ 4,294 $ 1,750 $ 4,290 $ 2,800 Utilities $ 5,123 $ 6,430 $ 7,100 $ 3,265 $ 7,100 Vehicle Expenses $ 43,547 $ 49,270 $ 45,899 $ 61,174 $ 77,261 Supplies & Services Sub -Total $ 349,869 $ 331,846 $ 379,339 $ 389,117 $ 476,067 Total Operating Expenses $ 1,203,265 $ 1,167,368 $1,297,008 $1,318,054 $1,337,406 Expenses (Non- Operating): Interest Expense $ 325 $ - $ - $ $ Other Expense $ 18,499 $ $ 6,000 $ $ Total Non - Operating Expenses $ 18,824 $ $ 6,000 $ $ Total Expenses $ 1,222,089 $ 1,167,368 $1,303,008 $1,318,054 $1,337,406 Net Income (Loss) Before Capital Contributions $ 948,968 $ 664,121 $ 504,944 $ 574,350 $ 542,585 Transfer(To) /From $ 85,111 $ - $ - $ - $ - Capital Contributions $17,115,898 $ 463,354 $ - $ 130,000 $ - Net Income Before Depreciation $18,149,977 $ 1,127,475 $ 504,944 $ 704,350 $ 542,585 Depreciation $ 932,700 $ 1,304,187 $1,299,301 $1,323,398 $1,345,000 Income (Loss) $17,217,277 $ (176,712) $ (794,357) $ (619,048) $ (802,415) $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 4A Total Revenue and Expenses (Sewer), Continued Sewer Revenues & Expenses (Does not include depreciation expense) FY 2011/12 Actual FY 2012/13 Actual FY 2013/14 Budget FY 2013/14 Forecast FY 2014/15 Budget iiiiiiiiiiilTotal Sewer Revenues --M--Total Sewer Expenses FY 2014/15 Revenues (Sewer) m Sewer Charge Revenue ■ Sewer parcel Ass, -smenh ■ Other operating revenue • Interest Income ■Other Income Total: $1,879,991 FY 2014/15 Expenses (Sewer) al tg o ■ Depreclation • Salary & Benefits • supple- & Services Total: $1,337,406 Total Revenues by Fund Total Revenues FY 2011/12 FY 2012/13 FY 2013/14 FY 2013/14 FY 2014/15 Actual Actual Budget Forecast Budget Water Revenue $ 27,818,304 $ 29,091,405 $ 30,022,631 $ 31,844,116 $ 31,074,889 Sewer Revenue $ 2,171,058 $ 1,831,489 $ 1,807,952 $ 1,892,404 $ 1,879,991 Total Operating Revenue: $ 29,989,362 $ 30,922,894 $ 31,830,583 $ 33,736,520 $ 32,954,880 Total Revenues $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- FY 2011/12 Actual FY 2012/13 Actual FY 2013/14 Budget FY 2013/14 Forecast FY 2014/15 Budget ■ Water Revenue ■ Sewer Revenue Water Revenue s1+,BOB B3Aaao $31,844 $31,075 $30,023 336,663 $29,091 Saa1bB $27,618 52BABB SbaoD S22,BBB S2BABB . "Ml/12M 3Y2012/13A NM3/14BWp1 ""3/14 a "20WU&,l Sz,saB $2,171 31,000 SLSm SIAIB SsoB Sewer Revenue s "M1112AdW R2012/O3 W N20 V14BOBh1 3Y2013/143aotnt RM4 /081dz� Total Expenses by Fund FY 2011/12 FY 2012/13 FY 2013/14 Actual Actual Budget qt FY 2013/14 FY 2014/15 Forecast Budget Water $21,862,795 $23,790,095 $24,601,177 $29,874,111 $26,141,346 Sewer $1,203,265 $1,167,368 $1,297,008 $1,318,054 $1,337,406 Total Operating Expenses: $23,066,060 $24,957,463 $25,898,185 $31,192,165 $27,478,753 Note: Depreciation Not Included Total Expenses $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 FY 2011112 Actual FY 2012/13 Actual FY 2013/14 Budget FY 2013/14 Forecast FY 2014/15 Budget ■ Water ■ Sewer Sewer Expenses iaas.w wee axavmn .amsn sz,sso SLSOo sz.ao stsao s�>so sl�ao Sioso .rzmz/z:,x...i rr zou/z3,x..x rr zo1z/za wes.c wzma/ze r«.rn rrzmHzsewsz Supplies g 12% ($4.3r L7 $16,000 $14,000 $12,000 M $10,000 $8,000 0 1= $6,000 $4,000 $2,000 Salary Expel 22' ($8.� 4A Total Expenses by Category FY 2014/15 Budget Depreciation & Oth- Fvn-p Total: $36,660,045 Five Year Cost Comparison Five Year Cost Comparison Depreciation Variable Costs ■ FY 2011/12 Actual ■ FY 2012/13 Actual Salaries & Supplies & Interest Other Ben. Svcs. ■ FY 2013/14 Budget ■ FY 2013/14 Forecast L. FY 2014/15 Budget Variable Water Cost Expenses FY 2014/15 $1,525,136 (10 %) $3,833,851 (26 %) $8,427,136 (56 %) ■ Import Water ■ Power & Pumping Costs ■ Groundwater ■ CUP ........ ,._ 9253 972 Note: The Variable Water Costs category is the largest component of the FY 2014/15 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 56 and 58, respectively. = —Lo ANNUAL OPERATING W Reserves & Funding Sources Forecasted Budgeted Balance Balance Balance Additions Balances Ending Ending Ending (Deductions) Ending Funding Sources Restriction Category 6/30/2013 4/30/2014 6/30/2014 FY 2013/14 6/30/2014 Water (Operating): Operating Fund Operating Reserve 4,719,010 4,041,785 3,800,000 (663,038) 3,136,962 Reserve for Debt Service Debt Service Payment 1,304,228 2,728,996 2,723,509 - 2,723,509 Employee Liabilities OPEB and Comp Abs. - 93,035 93,035 92,965 186,000 Water (Capital) Water Emergency Emergency Reserve 990,234 1,005,031 1,000,000 - 1,000,000 Water Capital Projects Capital Reserve* 7,774,174 7,898,185 7,725,000 1,303,823 9,028,823 COP Bond 2008 - Reserve Restricted from Use ** 2,160,389 2,124,670 2,147,096 - 2,147,096 Water Maintenance Capital Reserve 200,715 191,658 200,000 200,000 Sewer (Operating): Operating Fund Operating Reserve 246,893 741,587 300,000 (139,511) 160,489 Employee Liabilities OPEB and Comp Abs. - 7,003 7,003 6,997 14,000 Sewer (Capital) Sewer Emergency Emergency Reserve 1,001,806 1,007,297 1,000,000 - 1,000,000 Sewer Capital Projects Capital Reserve 1,167,222 1,402,212 1,174,204 203,099 1,377,303 Total of Funds $ 19,564,671 $ 21,241,459 $ 20,169,847 $ 804,335 $ 20,974,182 *Amount includes an assumption of $5,267,352 borrowed against a line of credit in FY 13/14 and $1,173,648 in FY 14/15 * *Amount has been set aside by the fiscal agent in a reserve fund, and is unable to be spent down ..eo 1.30 380 330 2.81) z3o ieo L3o 0.80 0.30 (0.10) 1� Projected Reserves & Funding Levels Reserve Targets and Projected Funding Levels isz Ld - I Operating (water) Operating (Sewer) Emergency (Water) Emergency (Sewer) Capital (Water)* Capital (Sewer)- Maintenance Employee Liabilities deserve for Debt (Water) (W &S)" Service (Water) ■ Minimum target ■ Maximum target ■ Proje. ted Balance ((n) 6/30/14) Five Year Financial Projections (FY 2014 -2019) Narrative This financial projection is designed to provide a general understanding of how revenues and expenditures are expected to influence the District over the next five years. Revenue and expenditure projections are reviewed in relation to their effect on funding capital projects, reserve levels, and operating fund balances. The District will update its projections on an annual basis in order to plan for the future and determine recommended rates. The projection factors in debt ratios, reserve balances, projected rate increases, cost increases and growth projections. The assumptions in the following projections include: • Costs passed- through for all variable water cost rate increases • Annual increases on the water commodity rate of 2.5% • 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 due September 16, 2016 • 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 0.3 % - 1.2% • 1 % growth in property taxes • 1.5% annual increase in other non- operating revenue other than annexation amortization • 4% - 6.5% 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 • 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. ANNUAL OPERATING W Five Year Financial Projections Water & Sewer FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Budget Budget Budget Budget Budget Revenue (Operating): Water Revenue (Residential) $17,154,552 $17,338,876 $18,086,654 $18,683,665 $19,468,375 Water Revenue (Commercial & Fire Det.) $ 2,074,097 $ 2,159,902 $ 2,253,052 $ 2,327,422 $ 2,425,173 Water Revenue (Landscape /Irrigation) $ 4,792,995 $ 5,025,625 $ 5,246,679 $ 5,423,164 $ 5,655,136 Service Charges $ 4,478,000 $ 5,294,707 $ 6,176,646 $ 7,087,940 $ 7,867,613 Sewer Charge Revenue $ 1,605,292 $ 1,609,787 $ 1,614,294 $ 1,618,814 $ 1,623,347 Sewer Parcel Assessments $ 201,000 $ 201,000 $ 201,000 $ 201,000 $ 201,000 Other Operating Revenue $ 719,777 $ 729,827 $ 740,028 $ 750,382 $ 760,891 Total Operating Revenue $31,025,713 $32,359,724 $34,318,353 $36,092,387 $38,001,535 Revenue (Non- Operating): Interest $ 112,000 $ 135,228 $ 168,059 $ 226,153 $ 204,440 Property Tax $ 1,283,642 $ 1,296,479 $ 1,309,443 $ 1,322,538 $ 1,335,763 Other Non - Operating Revenue $ 533,525 $ 535,137 $ 536,781 $ 538,458 $ 540,169 Total Non - Operating Revenue $ 1,929,167 $ 1,966,844 $ 2,014,283 $ 2,087,150 $ 2,080,372 Total Revenue $32,954,880 $34,326,568 $36,332,637 $38,179,537 $40,081,907 Expenses (Operating): Variable Water Costs $14,928,972 $14,052,319 $14,163,929 $14,877,435 $15,621,307 Salary Related Expenses $ 8,224,812 $ 8,636,053 $ 9,067,855 $ 9,521,248 $ 9,997,310 Supplies & Services: Communications $ 294,894 $ 318,486 $ 334,410 $ 344,442 $ 354,775 Contractual Services $ 560,700 $ 605,556 $ 635,834 $ 654,909 $ 674,556 Data Processing $ 186,830 $ 201,776 $ 211,865 $ 218,221 $ 224,768 Dues & Memberships $ 78,065 $ 84,310 $ 88,526 $ 91,181 $ 93,917 Fees & Permits $ 186,190 $ 201,085 $ 211,139 $ 217,474 $ 223,998 Board Election $ 75,000 $ - $ 50,000 $ - $ 75,000 Insurance $ 313,340 $ 329,007 $ 345,457 $ 362,730 $ 380,867 Materials $ 658,125 $ 710,775 $ 746,314 $ 768,703 $ 791,764 District Activities, Emp Recognition $ 24,710 $ 26,687 $ 28,021 $ 28,862 $ 29,728 Maintenance $ 442,150 $ 477,522 $ 501,398 $ 516,440 $ 531,933 Non - Capital Equipment $ 152,000 $ 164,160 $ 172,368 $ 177,539 $ 182,865 Office Expense $ 40,475 $ 43,713 $ 45,899 $ 47,276 $ 48,694 Professional Services $ 711,610 $ 768,539 $ 806,966 $ 831,175 $ 856,110 Training $ 65,180 $ 70,394 $ 73,914 $ 76,132 $ 78,415 Travel & Conferences $ 46,500 $ 50,220 $ 52,731 $ 54,313 $ 55,942 Uncollectible Accounts $ 40,000 $ 43,200 $ 45,360 $ 46,721 $ 48,122 Utilities $ 90,800 $ 98,064 $ 102,967 $ 106,056 $ 109,238 Vehicle Equipment $ 358,400 $ 387,072 $ 406,426 $ 418,618 $ 431,177 Supplies & Services Sub -Total $ 4,324,969 $ 4,580,566 $ 4,859,595 $ 4,960,792 $ 5,191,870 Total Operating Expenses $27,478,753 $27,268,938 $28,091,379 $29,359,475 $30,810,487 Expenses (Non- Operating): Interest Expense $ 1,780,793 $ 1,816,559 $ 1,776,884 $ 1,734,309 $ 1,688,509 Other Expense $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 Total Non - Operating Expenses $ 1,852,793 $ 1,888,559 $ 1,848,884 $ 1,806,309 $ 1,760,509 Total Expenses $29,331,545 $29,157,497 $29,940,263 $31,165,784 $32,570,996 Net Income (Loss) Before Depreciation $ 3,623,335 $ 5,169,071 $ 6,392,374 $ 7,013,753 $ 7,510,911 Depreciation $ 7,337,500 $ 7,763,632 $ 8,016,132 $ 8,157,132 $ 8,550,992 Income (Loss) $ (3,714,165) $ (2,594,562) $ (1,623,759) $ (1,143,379) $ (1,040,081) = � ANNUAL OPERATING w Five Year Financial Projections Water FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Budget Budget Budget Budget Budget Revenue (Operating): Water Revenue (Residential) $ 17,154,552 $ 17,338,876 $ 18,086,654 $ 18,683,665 $19,468,375 Water Revenue (Commercial & Fire Det.) $ 2,074,097 $ 2,159,902 $ 2,253,052 $ 2,327,422 $ 2,425,173 Water Revenue (Landscape /Irrigation) $ 4,792,995 $ 5,025,625 $ 5,246,679 $ 5,423,164 $ 5,655,136 Service Charges $ 4,478,000 $ 5,294,707 $ 6,176,646 $ 7,087,940 $ 7,867,613 Other Operating Revenue $ 670,003 $ 680,053 $ 690,254 $ 700,608 $ 711,117 Total Operating Revenue $ 29,169,647 $ 30,499,163 $ 32,453,286 $ 34,222,799 $36,127,414 Revenue (Non- Operating): Interest $ 100,000 $ 120,708 $ 150,054 $ 202,027 $ 202,027 Property Tax $ 1,283,642 $ 1,296,479 $ 1,309,443 $ 1,322,538 $ 1,335,763 Other Non - Operating Revenue $ 521,600 $ 523,212 $ 524,856 $ 526,533 $ 528,244 Total Non - Operating Revenue $ 1,905,242 $ 1,940,399 $ 1,984,354 $ 2,051,098 $ 2,066,034 Total Revenue $ 31,074,889 $ 32,439,562 $ 34,437,639 $ 36,273,897 $38,193,448 Expenses (Operating): Variable Water Costs $ 14,928,972 $ 14,052,319 $ 14,163,929 $ 14,877,435 $15,621,307 Salary Related Expenses $ 7,363,472 $ 7,731,646 $ 8,118,228 $ 8,524,140 $ 8,950,347 Supplies & Services: Communications $ 273,786 $ 295,689 $ 310,474 $ 319,788 $ 329,382 Contractual Services $ 521,451 $ 563,167 $ 591,325 $ 609,065 $ 627,337 Data Processing $ 173,752 $ 187,652 $ 197,035 $ 202,946 $ 209,034 Dues & Memberships $ 72,321 $ 78,107 $ 82,013 $ 84,473 $ 87,007 Fees & Permits $ 169,437 $ 182,992 $ 192,141 $ 197,905 $ 203,843 Board Election $ 69,750 $ - $ 46,500 $ - $ 69,750 Insurance $ 291,406 $ 305,977 $ 321,275 $ 337,339 $ 354,206 Materials $ 579,369 $ 625,719 $ 657,005 $ 676,715 $ 697,016 District Activities, Emp Recognition $ 22,980 $ 24,819 $ 26,060 $ 26,841 $ 27,647 Maintenance $ 329,546 $ 355,909 $ 373,705 $ 384,916 $ 396,463 Non - Capital Equipment $ 132,525 $ 143,127 $ 150,283 $ 154,792 $ 159,436 Office Expense $ 37,642 $ 40,653 $ 42,686 $ 43,966 $ 45,285 Professional Services $ 672,197 $ 725,973 $ 762,272 $ 785,140 $ 808,694 Training $ 58,571 $ 63,257 $ 66,420 $ 68,413 $ 70,465 Travel & Conferences $ 42,129 $ 45,499 $ 47,774 $ 49,208 $ 50,684 Uncollectible Accounts $ 37,200 $ 40,176 $ 42,185 $ 43,450 $ 44,754 Utilities $ 83,700 $ 90,396 $ 94,916 $ 97,763 $ 100,696 Vehicle Equipment $ 281,139 $ 303,630 $ 318,812 $ 328,376 $ 338,227 Supplies & Services Sub -Total $ 3,848,902 $ 4,072,742 $ 4,322,879 $ 4,411,096 $ 4,619,926 Total Operating Expenses $ 26,141,346 $ 25,856,707 $ 26,605,037 $ 27,812,671 $29,191,579 Expenses (Non- Operating): Interest Expense $ 1,780,793 $ 1,816,559 $ 1,776,884 $ 1,734,309 $ 1,688,509 Other Expense $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 Total Non - Operating Expenses $ 1,852,793 $ 1,888,559 $ 1,848,884 $ 1,806,309 $ 1,760,509 Total Expenses $ 27,994,139 $ 27,745,266 $ 28,453,921 $ 29,618,980 $30,952,088 Net Income (Loss) Before Depreciation $ 3,080,750 $ 4,694,295 $ 5,983,719 $ 6,654,917 $ 7,241,360 Depreciation $ 5,992,500 $ 6,418,632 $ 6,671,132 $ 6,812,132 $ 7,205,992 Income (Loss) $ (2,911,750) $ (1,724,337) $ (687,414) $ (157,215) $ 35,368 Debt Service Coverage 1.75 2.34 2.80 3.04 3.24 = � ANNUAL OPERATING W Five Year Financial Projections Sewer FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Budget Budget Budget Budget Budget Revenue (Operating): Sewer Charge Revenue $ 1,605,292 $ 1,609,787 $ 1,614,294 $ 1,618,814 $ 1,623,347 Sewer Parcel Assessments $ 201,000 $ 201,000 $ 201,000 $ 201,000 $ 201,000 Other Operating Revenue $ 49,774 $ 49,774 $ 49,774 $ 49,774 $ 49,774 Total Operating Revenue $ 1,856,066 $ 1,860,561 '$ 1,865,068 $ 1,869,588 $ 1,874,121 Revenue (Non- Operating): Interest $ 12,000 $ 14,520 $ 18,005 $ 24,126 $ 2,413 Other Non - Operating Revenue $ 11,925 $ 11,925 $ 11,925 $ 11,925 $ 11,925 Total Non - Operating Revenue $ 23,925 $ 26,445 F$ 29,930 $ 36,051 $ 14,338 Total Revenue $ 1,879,991 $ 1,887,006 $ 1,894,998 $ 1,905,640 $ 1,888,459 Expenses (Operating): Salary Related Expenses $ 861,340 $ 904,407 $ 949,627 $ 997,108 $ 1,046,964 Supplies & Services: Communications $ 21,108 $ 22,796 $ 23,936 $ 24,654 $ 25,394 Contractual Services $ 39,249 $ 42,389 $ 44,508 $ 45,844 $ 47,219 Data Processing $ 13,078 $ 14,124 $ 14,831 $ 15,275 $ 15,734 Dues & Memberships $ 5,744 $ 6,203 $ 6,513 $ 6,709 $ 6,910 Fees & Permits $ 16,753 $ 18,094 $ 18,998 $ 19,568 $ 20,155 Board Election $ 5,250 $ - $ 3,500 $ - $ 5,250 Insurance $ 21,934 $ 23,030 $ 24,182 $ 25,391 $ 26,661 Materials $ 78,756 $ 85,056 $ 89,309 $ 91,988 $ 94,748 District Activities, Emp Recognition $ 1,730 $ 1,868 $ 1,961 $ 2,020 $ 2,081 Maintenance $ 112,605 $ 121,613 $ 127,694 $ 131,524 $ 135,470 Non - Capital Equipment $ 19,475 $ 21,033 $ 22,085 $ 22,747 $ 23,430 Office Expense $ 2,833 $ 3,060 $ 3,213 $ 3,309 $ 3,409 Professional Services $ 39,413 $ 42,566 $ 44,694 $ 46,035 $ 47,416 Training $ 6,609 $ 7,137 $ 7,494 $ 7,719 $ 7,951 Travel & Conferences $ 4,371 $ 4,721 $ 4,957 $ 5,105 $ 5,259 Uncollectible Accounts $ 2,800 $ 3,024 $ 3,175 $ 3,270 $ 3,369 Utilities $ 7,100 $ 7,668 $ 8,051 $ 8,293 $ 8,542 Vehicle Equipment $ 77,261 $ 83,442 $ 87,614 $ 90,242 $ 92,950 Supplies & Services Sub -Total $ 476,067 $ 507,824 $ 536,715 $ 549,695 $ 571,944 Total Operating Expenses $ 1,337,406 $ 1,412,231 F$ 1,486,342 $ 1,546,804 $ 1,618,908 Expenses (Non- Operating): Other Expense $ - $ - $ - $ - $ - Total Non - Operating Expenses $ - $ - $ - $ - $ - Total Expenses $ 1,337,406 $ 1,412,231 $ 1,486,342 $ 1,546,804 $ 1,618,908 Net Income (Loss) Before Depreciation $ 542,585 $ 474,775 $ 408,656 $ 358,836 $ 269,551 Depreciation $ 1,345,000 $ 1,345,000 $ 1,345,000 $ 1,345,000 $ 1,345,000 Income (Loss) $ (802,415) $ (870,225) $ (936,344) $ (986,164) $ (1,075,449) Five Year Financial Projections Reserve Balances- Water FY 2014/15 FY 2015116 FY 2016/17 FY 2017/18 FY 2017/18 Budget Budget Budget Budget Budget Operating Reserves Ending Balance $ 3,136,962 $ 3,102,805 $ 3,192,604 $ 3,337,521 $ 3,502,990 Minimum Balance $ 2,091,308 $ 2,068,537 $ 2,128,403 $ 2,225,014 $ 2,335,326 Maximum Balance $ 4,444,029 $ 4,395,640 $ 4,522,856 $ 4,728,154 $ 4,962,568 Capital Replacement Reserves Ending Balance $ 9,028,823 $ 4,441,098 $ 1,820,000 $ 1,820,000 $ 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 $ 2,721,559 $ 2,716,884 $ 2,714,309 $ 2,714,309 Minimum Balance $ 2,723,509 $ 2,721,559 $ 2,716,884 $ 2,714,309 $ 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 $ 186,000 $ 279,000 $ 372,000 $ 465,000 $ 558,000 Minimum Balance* $ 93,000 $ 93,000 $ 93,000 $ 93,000 $ 93,000 Reserve for Debt Service $ 2,723,509 $ 2,723,509 $ 2,723,509 $ 2,723,509 $ 2,723,509 Ending Balance $ 2,723,509 $ 2,723,509 $ 2,723,509 $ 2,723,509 $ 2,723,509 Minimum Balance* Total Water Reserves Ending Balance $21,145,899 $16,615,067 $14,172,093 $14,407,435 $14,665,904 Minimum Balance $12,798,422 $12,773,701 $12,828,892 $12,922,928 $13,033,240 Minimum Balance is actually minimum annual funding $75.000.000 $20,000,000 $15,000,000 $10,000,000 $S,OOO,000 s Water Enterprise Five Year Reserve Balance Projection FY 2014/15 Budget FY 2015 /16 Budget FY 7016/17 Budget FY 7017118 Budget FY 7017/18 Budget Ending Balance t Minimum Balance Five Year Financial Projections Reserve Balances- Sewer Operation Reserves Ending Balance Minimum Balance Maximum Balance Capital Replacement Reserves Ending Balance Minimum Balance' Emergency Reserves Ending Balance Minimum Balance Employee Liability Reserves Ending Balance Minimum Balance Total Sewer Reserves Ending Balance Minimum Balance *Minimum Balance is actuallyminimum annual funding $3AO,000 $2,'8,000 $2A0,000 $11500A00 51,00,a00 $50,000 S FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Budget Budget Budget Budget Budget $ 160,489 $ 169,468 $ 178,361 $ 185,616 $ 194,269 $ 106,993 $ 112,978 $ 118,907 $ 123,744 $ 129,513 $ 227,359 $ 240,079 $ 252,678 $ 262,957 $ 275,214 $ 1,396,500 $ 1,353,866 $ 1,366,769 $ 1,441,941 $ 1,517,113 $ 345,000 $ 345,000 $ 345,000 $ 345,000 $ 345,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 14,000 $ 21,000 $ 28,000 $ 35,000 $ 42,000 $ 2,570,989 $ 2,544,334 $ 2,573,130 $ 2,662,557 $ 2,753,382 $ 701,993 $ 707,978 $ 713,907 $ 718,744 $ 724,513 Sewer Enterprise Five Year Reserve Balance Projection FY 2014/15 Budget FY 2015/16 Budget FY 2016/17 Budget FY 2017 /18 Budget FY 2018/19 Budget � Ending Balance -a- Minimum Balance 4.4 Fund Balance History (FYE 2011 -2015) Fiscal Year - Water Sewer 1,757,561 Ending 865,113 Funds Fund Total 06/30/11 Net Income Before Capital Contributions (763,535) (684,679) (1,448,214) 687,391 Capital Contributions 364,564 341,755 706,319 33,736,520 Prior Period Adjustment - 410,247 410,247 130,000 Fund Balance @ 6/3012011 $ 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 Net Income Before Capital Contributions (2,288,495) (640,066) (2,928,561) Capital Contributions 711,319 463,354 1,174,673 Prior Period Adjustment (1,561,743) - (1,561,743) Fund Balance @ 6/30/2012 $ 119,099,584 $ 42,626,998 $ 161,726,582 06/30/14 Revenue (Operating): Water Sales Sewer Revenues Other Operating Revenue Interest Property Taxes Other Non - Operating Revenue Total Estimated Revenues FY2014 Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services Depreciation Interest on Long Term Debt Other Expense Total Estimated Expenses FY2014 Net Income(Loss) Before Capital Contributions Capital Contributions Net Income(Loss) FY 2014 Estimated Fund Balance @ 6/30/2014 06/30/15 Revenue (Operating): Water Sales Sewer Revenues Other Operating Revenue Interest Property Taxes Other Non - Operating Revenue Total Estimated Revenues FY2015 Expenses (Operating): Variable Water Costs (G.W., Import & Power) Salary Related Expenses Supplies & Services Depreciation Interest on Long Term Debt Other Expense Total Estimated Expenses FY2015 Net Income(Loss) FY 2015 Estimated Fund Balance @ 6/30/2015 28,839,612 - 28,839,612 - 1,757,561 1,757,561 865,113 89,043 954,156 102,000 8,300 110,300 1,350,000 - 1,350,000 687,391 37,500 724,891 31,844,116 1,892,404 33,736,520 14,721,591 - 14,721,591 6,654,763 928,937 7,583,700 3,534,870 389,117 3,923,987 5,946,910 1,323,398 7,270,308 1,733,122 - 1,733,122 44,263 - 44,263 32,635,518 2,641,452 35,276,970 (791,402) (749,048) (1,540,450) 649,000 130,000 779,000 (142,402) (619,048) (761,450) $ 118,957,182 $ 42,007,950 $ 160,965,131 28,499,644 - 28,499,644 - 1,806,292 1,806,292 670,003 49,774 719,777 100,000 12,000 112,000 1,283,642 - 1,283,642 521,600 11,925 533,525 31,074,889 1,879,991 32,954,880 14,928,972 - 14,928,972 7,363,472 861,340 8,224,812 3,848,902 476,067 4,324,969 5,992,500 1,345,000 7,337,500 1,780,793 - 1,780,793 72,000 - 72,000 33,986,639 2,682,406 36,669,045 (2,911,750) (802,415) (3,714,165) $ 116,045,431 $ 41,205,535 $ 157,250,966 Debt Administration The District's debt rating from Fitch is "AX. 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 ratio is calculated using revenue and expenses data pertaining to the Water Fund only and the covenants require that the coverage exceed 1.1. The District's budgeted ratio is 1.75 for Fiscal Year 2015. This District's Fiscal Year 2014/15 budgeted debt service obligation ($2,723,509) is related to its two existing debt issuances. Use of proceeds and the corresponding principal balance of each are as follows: Year of Issuance Use of Proceeds Principal Balance as of June 2014 2008 COP funds are being issued to finance certain capital $ 31,365,000 COP improvements, to fund a reserve fund, and to pay certain $ 1,010,000 costs of delivery. 1,713,509 2012A Refunding Bonds funds are being issued to finance certain 8,070,000 Refunding capital improvements, to fund a reserve fund, and to pay $ Bond certain costs of delivery. 2,721,559 2017 $ $ 39,435,000 Debt service requirements for the District's Certificates of Participation are as follows: Year -2025 Principal 6,850,000 Interest 6,701,525 Total 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 $ 2,674,309 2019 $ 1,170,000 $ 1,548,509 $ 2,668,509 2020 $ 1,210,000 $ 1,500,909 $ 2,670,909 2021 -2025 $ 6,850,000 $ 6,701,525 $ 13,551,525 2026 -2029 $ 8,470,000 $ 5,032,963 $ 13,502,963 2030 -2034 $ 9,875,000 $ 3,004,944 $ 12,879,944 2035 -2039 $ 7,605,000 '$ 783,375 $ 8,388,375 Total $ 39,435,000 $ 25,193,485 $ 64,498,485 �YL ANNUAL OPERATING 53,000,000 $2,500,000 52,000,000 $1,500,000 - 51,000,000 - 5500,000 2.50 2.00 1.50 1.00 0.50 0.00 Yorba Linda WD South Coast WD Debt Administration, Continued 2015 -2020 Debt Service Requirements hi I'll, 201. 201-1 MIR 7019 2070 ■ Princgal ■ Interest Employees Per Capita Employees per Capita Serrano WD Walnut Valley Mesa Water WD * Note: Employees per Capita is for fiscal year 2013/14 and is measured in number of employees per thousand customers. Residential Meter Charge Comparison 3/4" Meter $32.21 $35.00 $30.00 $23.72 $25.00 $20.00 $17.08 $15.00 $15.00 $8.80 $10.00 $5.00 $- Yorba Linda WD South Coast WD Serrano WD Walnut Valley WD Mesa Water 1" Meter $42.69 $45.00 $40.00 $32.21 $35.00 $30.00 $25.00 $21.60 $25.00 $20.00 $14.67 $15.00 $10.00 $5.00 $- Yorba Linda WD South Coast WD Serrano WD Walnut Valley Mesa Water WD 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 13/14. VLM ANNUAL OPERATING BUDGET FISCAL' CAPITAL PROJECTS VLM ANNUAL OPERATING BUDGET FISCAL` l J 2012 Pipeline Project i El L I *-:.L N. Capital Improvement Plan Total Project Increase/ Total Project Expenditures Project Description Budget Budget Through (13/14) (Decrease) (14/15) 6/30/2013 YL Blvd BPS(Booster Pump Station) $ 3,115,000 (1,217,009) $ 1,897,991 $ 602,885 S&W Well Project(Well No. 21) $ 1,750,000 556,789 $ 2,306,789 $ 44,832 S&W Well Project(Well No. 22) $ 2,500,000 - $ 2,500,000 $ 2,742 Lakeview Grade Separation $ 600,000 - $ 600,000 $ 275,689 Deville Dr. Waterline Extension $ 50,000 - $ 50,000 $ - Fairmont BPS Upgrade $ 6,300,000 - $ 6,300,000 $ 142,012 Yorba Linda High School Park $ 370,000 - $ 370,000 $ 47,014 Rehabilitation &Restoration Meter Replacement Program $ 2,500,000 (2,500,000) $ - $ - Future Pipeline Project $ 2,690,000 - $ 2,690,000 $ - Timber Ridge BPS Rehabilitiation $ 250,000 - $ 250,000 $ - Richfield Campus Spoils $ 150,000 - $ 150,000 $ - Lakeview Booster Piping $ 100,000 - $ 100,000 $ - Future PRS Rehabilitation $ 1,430,000 - $ 1,430,000 $ - Annual Routine Capital R&R $ 1,520,000 $ 2,500,000 $ 4,020,000 $ - R&R Subtotal $ 8,640,000 $ - $ 8,640,000 $ - Funding of Capital-Related Salaries $ - $ - $ - $ - TOTAL $ 23,325,000 $ (660,220) $ 22,664,780 $ 1,115,174 Total Project Expenditures Projects Completed in FY 13/14 Budget Over/(Under) Actual Project Through (13/14) Budget Total 6/30/2013 2012 Waterline Project $ 1,645,000 404,629 $ 2,049,629 $ 1,135,006 Elk Mountain Booster Surge Tank $ 100,000 (10,000) $ 90,000 $ - TOTAL $ 1,745,000 $ 394,629 $ 2,139,629 $ 1,135,006 GRAND TOTAL $ 25,070,000 $ (265,591) $ 24,804,409 $ 2,250,180 :1 ANNUAL • r Capital Improvement Plan, Continued FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 5 Year Future Budget Budget Budget Budget Budget Projected Budgets $ 100,000 $ - $ - $ - $ - $ 100,000 $ 940,790 $ 235,197 $ - $ - $ - $ 1,175,987 $ 445,000 $ 800,000 $1,247,258 $ - $ - $ 2,492,258 $ 264,311 $ - $ - $ - $ $ 264,311 $ 25,000 $ - $ - $ - $ - $ 25,000 $ 2,500,000 $ 2,937,988 $ 300,000 $ - $ - $ 5,737,988 $ 325,000 $ - $ - $ - $ - $ 325,000 $ 660,000 $ 160,000 $ 1,500,000 $ 330,000 $ $ 2,650,000 $ 240,000 $ - $ - $ - $ - $ 240,000 $ 130,000 $ $ - $ - $ - $ 130,000 $ 100,000 $ $ - $ - $ - $ 100,000 $ 100,000 $ 700,000 $ 100,000 $ 530,000 $ - $ 1,430,000 $ - $ - $ - $ 1,520,000 $ 2,500,000 $ 4,020,000 $ 1,230,000 $ 860,000 $ 1,600,000 $ 2,380,000 $ 2,500,000 $ 8,570,000 $ 265,000 $ - $ - $ - $ - $ 265,000 F$ 6,095,101 $ 4,833,185 $ 3,147,258 $ 2,380,000 $ 2,500,000 $ 18,955,544 Capital Projects Summary Yorba Linda Blvd Booster Pump Station Project Total Project Budget. $1,898,000 Proposed FY 14/15 Budget: $100,000 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 14/15. Projected costs in FY 13/14 and FY 14/15 are estimated to be $1,195,000 and $100,000, respectively. Well #21 Project Total Project Budget: $2,307,000 Proposed FY 14115 Budget: $940,000 Work began in FY 12/13 on plans for the drilling of the new well. In FY13/14, a test well was drilled to confirm the quantity and quality of water for the well. Thereafter, the well was drilled out and completed with a steel casing and pump- tested. Project costs in FY 13/14 and FY 14/15 are estimated to be $1,086,000 and $940,000, respectively. Work planned for FY 14/15 includes construction of wellhead facilities and a discharge pipeline. Well #22 Project Total Project Budget: $2,500, 000 Proposed FY 14115 Budget: $445,000 Reconnaissance field investigation and site evaluations started in FY 13/14. In FY14/15, a site is expected to be determined and the property acquired, at a budgeted cost of $445,000. Budgeted for FY15/16 is the drilling of the well and the preparation of plans for well equipping at an estimated cost of $800,000. Budgeted for FY 16/17 is construction of wellhead facilities and a discharge pipeline at an estimated cost of $1,247,000. Fairmont Pump Station Upgrade Project Total Project Budget: $6,300, 000 Proposed FY 14115 Budget: $2,500, 000 The project is the refurbishment and upgrading of the Fairmont Booster Station. The existing 37 -year old booster station will be demolished and its two booster pumps will be replaced by six, pumping to two different pressure zones. A new building will be constructed to house the pumps, as well as disinfection, electrical and back -up generation facilities. The project will also include refurbishment of elements of the Fairmont Reservoir. Planned for FY14/15 is completion of design plans and the beginning of construction at an estimated cost of $2.5 million. Construction will continue in FY 15/16 at an estimated cost of $2.9 million. Part of the cost of the improvements will be offset by developer - provided funding. = L ANNUAL OPERATING W Capital Projects Summary, Continued Lakeview Grade Separation Project Total Project Budget: $600, 000 Proposed FY 14115 Budget: $265, 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 line currently in Lakeview Avenue through the project area. The District's share of the pipeline relocation will be $250,000. Construction of the pipeline relocation work is anticipated to begin mid -2014, with a mid -2015 completion for all utility relocations. OCTA's bridge construction will follow. Yorba Linda High School Park Pipeline Relocation Project Total Project Budget: $370,000 Proposed FY 14115 Budget: $325,000 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 design and construction costs for relocating approximately 530 lineal feet of the BCF pipeline, at an estimated cost of $370,000. This work is anticipated to start late summer 2014 and be completed by late 2014. Future Pipeline Replacement Project Total Project Budget: $2,690, 000 Proposed FY 14115 Budget: $660, 000 In accordance with the District's Asset Management Plan, the District is replacing older water pipelines as part of an ongoing program. Staff will design approximately 2,000 feet of the more critical pipeline replacement reaches during FY 14/15, with pipeline construction in late FY 14/15 to early FY15/16. Additional waterline replacement work +will be designed and installed during subsequent fiscal years. Deville Drive Waterline Extension Total Project Budget: $50, 000 Proposed FY 14115 Budget: $25,000 The District will design and install approximately 130 -feet of 6 -inch diameter pipeline in Deville Drive in accordance with a previous Agreement and payment made by a Deville Drive property owner. Staff completed the design in -house during FY 13/14. Installation is anticipated to be complete during FY 14/15. I-Z_ �ANNUAL OPERATING Capital Projects Summary, Continued Timber Ridge Booster Station Rehabilitation Total Project Budget: $250, 000 Proposed FY 14115 Budget: $240, 000 Timber Ridge Booster Station is undersized and needs additional emergency pumping capacity. Staff will evaluate the least cost method to install a new gas engine enclosed with a new building, or install a new electric generator and possibly upsizing one or more of the existing pumps. Richfield Campus Spoils Total Project Budget: $150,000 Proposed FY 14115 Budget: $130,000 The District will design and solicit bids for the installation of a small concrete containment area on District property that will accommodate excess spoils from District repair and installation work, thereby reducing cost of dumping fees. Construction is anticipated to be complete during FY 14/15. Lakeview Booster Piping Total Project Budget: $100,000 Proposed FY 14115 Budget: $100,000 The District will coordinate the installation of an isolation valve to allow for a direct water supply from the Highland Pump Station to the Lakeview Reservoir, while providing for a direct water supply from the Lakeview Reservoir to the Lakeview Booster Pump Station. This project will improve water quality. Construction is anticipated to be complete during FY 14/15. Future PRS Rehabilitation Total Project Budget: $1,430,000 Proposed FY 14115 Budget: $100,000 The District will solicit proposals for design and rehabilitation upgrades of the existing Pressure Reducing Stations (PRS) that require frequent maintenance, and do not meet current District standards. Design work will be completed during FY 14/15 and construction is anticipated to be complete during FY 15/16. 1� Vehicle Equipment and Capital Outlay (FY 2014/15) Department / Item Amount Board of Directors None Administration None Engineering None Finance Meter Reading (1) Handheld Meter Reading Units $ 6,000 Total Vehicle Equipment & Capital Outlay- Finance $ 6,000 Human Resources None k1 Administration Server Replacements (Virtual, Exchsrv, Secsrv, ISTSsrv, etc.) $ 41,000 Network Improvements $ 20,000 Disaster Recovery (Information Backup) $ 60,000 Information Systems Replace Obsolete PCs (15 years +) $ 10,000 SCADA Box Canyon PLC (Control System) Upgrade $ 16,000 Well -10 PLC (Control System) Upgrade $ 14,000 Well -12 PLC (Control System) Upgrade $ 10,000 Well -7 PLC (Control System) Upgrade $ 10,000 Total Vehicle Equipment & Capital Outlay- IT $ 181,000 1� Vehicle Equipment and Capital Outlay (FY 2014/15), Continued Department / Item Amount Operations Water Operations & Maint. (2) Pickup Trucks $ 58,000 Backhoe $ 90,000 Sewer Operations & Maint. Sevver Vacuum /Jetter Truck $ 400,000 1 Ton Truck with Service Body $ 72,000 Water Production Lakeview Reservoir Pump Replacement $ 20,000 Mechanics Portable Emissions Analyzer $ 14,000 Facilities Maintenance Richfield Gate Repairs $ 55,000 Warehouse Reconfiguration $ 25,000 Total Vehicle Equipment & Capital Outlay- Operations $ 734,000 TOTAL VEHICLE EQUIPMENT & CAPITAL OUTLAY $ 921,000 Reconciliation by Fund Water Fund $ 449,000 Sewer Fund $ 472,000 TOTAL $ 921,000 VLM ANNUAL OPERATING BUDGET FISCAL' Department Summaries VLM ANNUAL OPERATING BUDGET FISCAL' Board of Directors = L ANNUAL OPERATING W Board of Directors The Board of Directors has oversight over Yorba Linda Water District and hires 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 Department accounts for the Board of Director's activities related to governing the District, establishing policy through approval of the Budget, Five Year Plan, Resolutions and Ordinances, and participating in community affairs, intergovernmental relations and participation at selected water and wastewater activities. In addition, the Board hires and provides direction to legal counsel and legislative advocacy consultants regarding activities related to policies and overall goals of the Board for the District. 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 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 -113 ':y_. .ANNUAL OPERATING G BUDGET FISCAL. YEAR 2014/2015 W 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 13/14, as compared to previous years. 500 400 300 200 100 0 Events Attended 516 FY 2009/10 FY 2010111 FY 2011/12 FY 2012/13 FY 2013/14 Accomplishments FY 2013/14 • Focused on enhancing agency efficiency by conducting the Organizational Assessment and Efficiency Study. • Broadened the reach of the District's Presence in the Wastewater Industry by opting to join California Association of Sanitation Agencies (CASA). • Further enhanced the overall reliability and economic stability of the District by shepherding an Annexation agreement with Orange County Water District. 0 r-1 Board of Directors Budget Expenses (Operating) Salary Related Expenses Salaries - Directors Fringe Benefits Mandatory Benefits - Directors Total Salary Related Expenses Supplies & Services Contractual Services Dues & Memberships Board Election Expenses Professional Services Professional Development Travel & Conferences Supplies & Services Sub -Total 1� FY 2013/14 FY 2014/15 Budget Budget $ 90,000 $ 90,000 $ 50,877 $ 52,442 $ 8,400 $ 8,533 $ 149,277 $ 150,975 $ 1,500 $ 1,500 $ 5,400 $ 13,400 $ - $ 75,000 $ 102,000 $ 90,000 $ 4,100 $ 4,100 $ 11,400 $ 9,400 $ 124,400 $ 193,400 qt Board of Directors Supplies & Services Budget (FY 2014/15) Primary GL Category 1-1010-0600-00 Contractual Services tegory Total $1,500 Sub Acct No./Sub Category I 1- 1010 - 0600 -00 Contractual Services Sub Acct I Total 1,500 Detail Item Description Tablet PC Data Service ($25 x 5) Detail Amt 1,500 1- 1010 - 0640 -00 Dues, Memberships, Subscriptions $13,400 1- 1010 - 0640 -00 Dues, Memberships, Subscriptions 13,400 WACO 200 CSDA 6,000 Colorado River Water Users Assoc 100 CASA 4,500 Water Ed Foundation 2,500 ISDOC 100 1- 1010 - 0650 -00 Board Election Expenses $75,000 1- 1010 - 0650 -10 Elections 75,000 Board Elections (3 seats) 75,000 1- 1010 - 0780 -00 Professional Services $90,000 1- 1010 - 0780 -00 Professional Services 90,000 LegalServices - Retainer 30,000 Legislative Consultants 60,000 1- 1010 - 0810 -00 Training $4,100 1- 1010 - 0810 -00 Training 4,100 CSDASpecial District Leadership AcademyTraining 4,100 1- 1010 - 0830 -00 Travel & Conferences $9,400 1- 1010 - 0830 -00 Travel & Conferences 9,400 Other Conferences 1,200 CRWUA (2 attendees at $1,000 each) 2,000 CSDA (2 attendees at $1,500 each) 3,000 ACWA (Spring- 2 @ $1,000, Fall -2 @ $500) 3,000 ISDOC Quarterly 200 Section Total $193,400 Supplies & Services Summary by Department Division Operations Information Technology Human Resources FY 2014/15 Board of Directors Administration Finance Engineering VLM ANNUAL OPERATING BUDGET FISCAL' VLM ANNUAL OPERATING BUDGET FISCAL' Administration Department Organization Chart Administration Department ®Yorba Linda Water District Organization Chart FY 2014/15 lob Classification Legend Management Part -Time Supervisory /Confidential Ba alning Unit = —LM ANNUAL OPERATING W 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. Division 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 department managers regarding various operational and planning issues. Additionally, the department is responsible for facilitating the work of the District's General Counsel. PUBLIC AFFAIRS This division 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 District 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. 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 ., Support Regional Training and Multi- Agency Workgroups through the CP -I 'oint use of the Administration Building Consider participation in the California Urban Water Conservation CP -2 Council's Best Management Practices Research and obtain grant funding whenever feasible CP -2 Continue with efforts to annex district service area to Orange County CP -2 Water District Engage with regional agencies on water supply issues CPA Evaluate the feasibility of providing additional water services within the SR -2 region Evaluate the feasibility of providing additional wastewater services within SR -2 the region Evaluate the feasibility of providing other professional services within the SR -2 region Continue to support additional training for staff WEA Encourage staff participation in professional organizations & local civic WEA groups 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 WEA 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 Performance Measures =0 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. 90 80 70 60 50 40 30 20 10 0 Public Outreach Events FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 • 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. 4 7) All -Hands Meetings Held 2 2 1 1 0 3 FY 2009/10 FY 2010111 FY 2011/12 FY 2012/13 FY 2013/14 � Goal (Actual Accomplishments Fiscal Year 2013/14 In addition to managing various media inquiries and public information requests and continuously cultivating intergovernmental and community relationships, the Public Affairs Division: • Updated and enhanced the overall reach of the MWDOC /Discovery Science Center water education program. • New signage was designed and now adorns the Boardroom and Lobby. • Created the District's new Informational Brochure Our Commitment to Public Service for the District Representatives to refer to and to distribute to the community at events. • Orchestrated the Freeway Complex Fire Five Year Anniversary Town Hall Meeting. • Began planning for the production of a History of YLWD Video. • Doubled the overall reach of the District's Bottled Water Program. rba Linda • —r Di-`rict �r �,S�D91V� i l = L ANNUAL OPERATIIQG W Administration Personnel Summary Department FY 2010/11 FY 2011 /12 FY 2012/13 FY 2013/14 Proposed FY 2014/15 Administration 0.5 0.5 0.5 General Manager 1.0 1.0 1.0 1.0 1.0 Asst. General Manager 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 - Records Management Specialist # - - - - 1.0 5.0 3.5 2.0 2.0 3.5 4.0 Public Affairs Legislative Affairs Intern Public Affairs Intern Public Affairs Specialist Management Analyst Public Information Officer Department Totals 0.5 0.5 0.5 - - 0.5 0.5 0.5 0.5 - - - - - 0.5 - 1.0 1.0 - - 1.0 1.0 1.0 1.0 1.0 2.0 3.0 3.0 1.5 1.5 5.5 5.0 5.0 5.0 5.5 'Positions added during Fiscal Year 2010/11 mid -year budget adjustment # Legislative Affairs Intern replaced with Records Management Clerk position 44 Administration Department Budget (FY 2014/15) Supplies & Services Communications $ FY 2013/14 $ FY 2014/15 Contractual Services $ Budget $ Budget Expenses (Operating) $ 55,560 $ 52,960 Salary Related Expenses $ 225 $ - Salaries $ 459,123 $ 553,406 Fringe Benefits $ 94,253 $ 101,580 Overtime $ - $ - Mandatory Benefits $ 51,883 $ 62,824 Total Salary Related Expenses $ 605,259 $ 717,810 Supplies & Services Communications $ 192,500 $ 189,994 Contractual Services $ 7,400 $ 7,400 Dues & Memberships $ 55,560 $ 52,960 Fees & Permits $ 225 $ - Insurance $ 1,240 $ 1,240 District Activities & Events $ 4,650 $ 4,650 Non - Capital Equipment $ 3,400 $ - Office Expense $ 250 $ 250 Professional Services $ 499,350 $ 405,750 Professional Development $ 8,350 $ 3,350 Travel & Conferences $ 12,000 $ 9,500 Supplies & Services Sub -Total $ 784,925 $ 675,096 Administration Budget Division Detail (FY 2014/15) Administration Division Primary GL Category 1-2010-0580-00 Communications Category Total $250 Sub Acct No./Sub Category I 1- 2010 - 0580 -10 Postage Sub Acct I Total 250 Detail Item Description I Postage Detail Amt I 250 1- 2010 - 0640 -00 Dues, Memberships, & Subscriptions $50,060 1- 2010- 0640 -00 Dues, Memberships, Subscriptions 50,060 Misc. 1,000 Notary Assoc Membership 60 ACWA 19,000 LAFCO 30,000 1- 2010 - 0690 -00 Insurance $1,240 1- 2010 - 0690 -00 Insurance 1,240 Notary Insurance (AA) 40 Honesty Bond (SC & AA) 1,200 1- 2010 - 0715 -00 District Activities and Events $4,050 1 -2010- 0715 -50 MeetingSupplies 4,050 MeetingSupplies 1,200 All Hands Meetings 2,500 Interagency Meetings 350 1- 2010 - 0760 -00 Office Expense $250 1- 2010- 0760 -00 Office Expense 250 Office Supplies 250 1- 2010 - 0780 -00 Professional Services $405,750 1- 2010 - 0780 -00 Professional Services 25,000 District Succession Plan 25,000 1- 2010 - 0780 -05 Legal Services 180,000 Routine Legal 180,000 1- 2010 - 0780 -15 Records Management 750 Records Retention Schedule Update 250 Records Destruction 500 1- 2010 - 0780 -36 Water Only Related Expenses 200,000 Freeway Complex Fire Legal Services 200,000 1- 2010 - 0810 -00 Professional Development $850 1- 2010 - 0810 -00 Professional Development 850 CSDA District ofDistinction GM Training 850 1- 2010 - 0830 -00 Travel & Conferences $2,000 1- 2010- 0830 -00 Travel & Conferences 2,000 ACWA (1 attendees) 1,000 Laserfische Conference (1 attendee) 1,000 Section Total $464,450 Administration Budget Division Detail (FY 2014/15) Public Affairs Division 'iatail It- Ilaarrintinn r 1- 2020 - 0580 -00 Communications $189,744 1- 2020 -0580 -05 Advertising 6,000 General 6,000 1- 2020 -0580 -10 Postage 17,000 Postage 17,000 1- 2020 - 0580 -15 District Special Events 20,000 Community Events (Open House, Facility Tours, etc.) 20,000 1- 2020 -0580 -35 Promotional Items 65,000 YLWD Bottled Water 45,000 Promotional Items 20,000 1 -2020- 0580 -40 Sponsorships 2,000 Sponsorship- OCWater Summit 2,000 1- 2020 - 0580 -45 Video Productions 29,000 PSA/VideoProduction /Web Maintenance 17,500 History Wall 11,500 1- 2020 -0580 -50 Water Conservation Materials 21,600 Fall Newsletter 5,400 Winter Newsletter 5,400 Spring Newsletter 5,400 Summer Newsletter 5,400 1- 2020 - 0580 -55 Water Conservation Programs 29,144 MWDOC Choice Water Use Efficiency 29,144 1- 2020 - 0600 -00 Contractual Services $7,400 1- 2020 - 0600 -00 Contractual Services 7,400 Doxo 1,620 Muzak Contract 780 Conservation Rebate Prog. (Turf, Sprinklers, etc.) 5,000 1- 2020 - 0640 -00 Dues, Memberships, & Subscriptions $2,900 1- 2020 -0640 -00 Dues, Memberships, & Subscriptions 2,900 OC Register /LATimes 500 Chamber Memberships (YL, PL) 1,000 CAPIO Membership 600 PRSAMembership 800 1- 2020 - 0715 -00 District Activities& Events $600 1- 2020 - 0715 -50 Meeting5upplies 600 Intergovernmental Meetings 350 Division Meetings 250 1- 2020 - 0810 -00 Professional Development $2,500 1- 2020 - 0810 -00 Professional Development 2,500 Training 2,500 1- 2020 - 0830 -00 Travel & Conferences $7,500 1- 2020 - 0830 -00 Travel & Conferences 7,500 CAPIO Annual Conference (1 employee) 1,400 PRSAAnnual Best Practices Summit (1 employee) 2,600 CRWUA(1 employee) 1,000 Mileage 2,500 Section Total $210,644 0 Supplies & Services Summary by Department Division Operations Information Technology Human Resources i FY 2014/15 Administration Department Board of Directors ------------- � Adrninistration Finance Engineering Public Affairs q 4 VLM ANNUAL OPERATING BUDGET FISCAL` think big teamwork newl imagination ■ ■ riskinspiring creative business communication solution key' performance planning works inn v ideaSconcept brand b rain sto rm plan strategysuccess g1oba1 process 0Utoftheboz ``reward leadershi efficient workflow informationmarketingbest organization networksocial research analysis green advertising Positivevision refresh ads development goals VLM ANNUAL OPERATING BUDGET FISCAL' Engineering Department Organization Chart Engineering Department Construction Sr. Project Water Oualiri Project Manager Engineer Supervisor Sr. Construction WO Technician II Inspector Eng. Technician Associate Eng. Technician 11 Engineer 11 Construction Inspector Yorba Linda Water District Organization Chart FY 2014/15 Job Classification Legend Management I Supervisory/Confidential I Bargaining Unit Engineering The Engineering Department, under the general direction of the Engineering Manager, provides the following support services: Planning, Design and Construction Management of Capital Improvement Projects, Water Quality Regulatory Compliance and Cross - Connection Prevention Programs, and Engineering Record Management of District facilities. The Department is 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 and compliance programs. 2012 Pipeline Replacement Project Division Responsibilities ENGINEERING ADMINISTRATION This division provides overall departmental administration and planning for capital projects, divisional 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. = L V kv Q_ ANNUAL OPERATING)�nl b. W PLANNING AND DESIGN This division 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 division has similar responsibilities for District planned and funded facilities, including confirmation that environmental documentation and requirements are met. The division 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 division is responsible for construction management of all District capital projects and developer - related construction projects. The division 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 division is responsible for implementing, maintaining, and complying with all local, state and federal water quality regulation programs including monitoring, analysis, and documentation of water quality testing. In addition, the division monitors all backflow devices and fire detector -check assemblies within the District service area for the cross - connection prevention program as required by the California Department of Public Health. 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. 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 SR -1 Replacements y: LM ANNUAL OPERATING 1%61 Performance Measures • In conformance with the requirements of the State Department of Public Health, District staff collects water samples from the distribution system, including wells and reservoirs 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 18 samples per week. The District routinely collects 37 samples per week, more than twice the number required. Additionally, the District also collects and analyzes for over 1,400 other chemical, bacteriological and mineral constituents on an annual basis to assure the water delivered is safe and meets or exceeds all standards of the Department of Public Health. In the last three years, District staff collected 4,005, 3,980 and 3,980 samples, respectively, for testing. • District Engineering staff manage multiple water and sewer projects each year, some of which may be short -term small improvements, such as new water and sewer service connections for new or improved single -lot developments, or long- term larger improvements, such as water and sewer main facilities and appurtenances for new housing and commercial developments, or new capital facilities, such as pump stations and transmission mains, 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 26, 15 and 11 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, and help safeguard public health, Engineering staff provide oversight for the testing and reporting of these devices. As necessary, District staff send notices to property owners (businesses and residential) of the need for the annual test as required by the State. Depending on the response of the property owners, staff will send First and Second Notices of testing required to customers to assure their devices are tested regularly on schedule for compliance. In 2010, 2011 and 2012, District staff provided oversight for the testing of 2,903; 2,948 and 3,048 backflow devices, respectively. Oversight included monitoring for devices that did not comply with test requirements and required repair or replacement, totaling 184, 161 and 133 devices over the last three years. Accomplishments Fiscal Year 2013/14 4 • Construction of Yorba Linda Blvd Booster Station • Construction of 2012 Pipeline Replacement Project, Phase 2 • Initiated construction of Y. L. High School Park Pipeline Relocation Project • Initiated construction of Elk Mountain BPS Surge Tank Replacement Project • Completed drilling of Well 21 • Initiated design of Wellhead Facilities and Pipeline for Well 21 • Initiated design of Fairmont Booster Station Upgrade Project • Completed process for annexation to Orange County Water District i Well #21 Drilling Construction = � ANNUAL OPERATING W Engineering Personnel Summary Department FY 2010/11 FY 2011 /12 FY 2012/13 FY 2013/14 Proposed FY 2014/15 Administration - 1.0 - 1.0 1.0 Engineering Manager 1.0 1.0 1.0 1.0 1.0 Engineering Secretary 1.0 1.0 1.0 1.0 - 4.0 2.0 2.0 2.0 2.0 1.0 Planning & Design Associate Engineer Engineering Technician II Project Coordinator Project Engineer Sr. Project Manager Construction Construction Inspector Construction Project Supervisor Project Engineer Sr. Construction Inspector Water Quality Water Quality Engineer Water Quality Technician II* Department Totals 1.0 3.0 2.0 2.0 2.0 2.0 - - - 1.0 - 1.0 1.0 1.0 - - 1.0 1.0 1.0 1.0 1.0 7.0 6.0 6.0 4.0 4.0 1.0 1.0 1.0 1.0 1.0 - - - 1.0 1.0 1.0 1.0 1.0 - - 1.0 1.0 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 14.0 13.0 13.0 11.0 10.0 " under filled with Water Quality Technician I prior to FY 2013/14 1� Engineering Department Budget (FY 2014/15) Supplies & Services Contractual Services $ FY 2013/14 $ FY 2014/15 Dues & Memberships $ Budget $ Budget Expenses (Operating) $ 27,875 $ 28,050 Salary Related Expenses $ 2,000 $ 2,000 Salaries $ 919,677 $ 928,221 Fringe Benefits $ 146,044 $ 123,662 Overtime $ 2,200 $ 2,200 Mandatory Benefits $ 120,547 $ 124,485 Total Salary Related Expenses $ 1,188,468 $ 1,178,568 Supplies & Services Contractual Services $ 111,380 $ 96,160 Dues & Memberships $ 3,063 $ 2,963 Fees & Permits $ 27,875 $ 28,050 Materials $ 2,000 $ 2,000 Non - Capital Equipment $ 1,400 $ 5,000 Office Expense $ 2,450 $ 2,950 Professional Services $ 20,000 $ 26,000 Professional Development $ 2,950 $ 3,850 Travel & Conferences $ 3,300 $ 3,300 Supplies & Services Sub -Total $ 174,418 $ 170,273 Engineering Budget Division Detail (FY 2014/15) Administration Division Primary GIL Category Category I Sub Acct No./Sub Category I Sub Acct I Detail Item Description I Detail Amt I To 1-4010-0640-00 $300 1- 4010 -0640 -00 Total 300 Dues, Memberships & Subscriptions 300 Dues, Memberships, & Dues, Memberships, Subscriptions Subscriptions 1- 4010 -0810 -00 $200 1- 4010 - 0810 -00 200 Training 200 Professional Development Training 1 -0010- 0830 -00 $800 1- 4010 - 0830 -00 800 Travel & Conferences 800 Travel & Conferences Travel and Conferences Section Total $1,300 Engineering Budget Division Detail (FY2014/15) Planning & Design Division Primary GIL Category Category Sub Acct No./Sub Category I Sub Acct I Detail Item Description I Detail Amt I To 1-4020-0600-00 $35,000 1- 4020 -0600 -00 Total 35,000 The Chambers Group (Hidden Hills) 35,000 Contractual Services Contractual Services 1- 4020 -0645 -00 $6,050 1 -4020- 0645 -00 4,050 OCWD /Well 21 Lease Agreement Fee 4,050 Fees& Permits Fees & Permits 1 -4020- 0645 -20 2,000 USA Underground Service Alerts 2,000 USA Underground Service 1- 4020 - 0640 -00 $500 1- 4020 - 0640 -00 500 AWWA 250 Dues, Memberships, & Dues, Memberships, & ASCE 250 Subscriptions Subscriptions 1 -0020 -0760 -00 $1,800 1- 4020 - 0760 -00 1,500 Office Expense 1,500 Office Expense Office Expense 1- 4020 - 0760 -30 300 Library Reference Books 300 Books & Publications 1 -0020 -0780 -00 $26,000 1- 4020 - 0780 -00 3,000 Cathodic Protection Consulting Services 3,000 Professional Services Professional Services 1- 4020 - 0780 -36 15,000 Water Consulting Services 15,000 ProfessionalServiices -Water 1- 4020 - 0780 -39 8,000 Sewer Consulting Services 8,000 Professional Services -Sewer 1 -4020- 0810 -00 $1,000 1- 4020 - 0810 -00 1,000 AWWA 500 Professional Development Professional Development Certification Courses 500 1 -0020- 0830 -00 $500 1- 4020- 0830 -00 500 Cathodic Protection 500 Travel & Conferences Travel & Conferences Section Total $70,850 Engineering Budget Division Detail (FY 2014/15) Construction Division Primary GIL Category Category Sub Acct No./Sub Category Sub Acct 1 -4030- 0640 -00 $500 14030 -0640 -00 500 Dues, Memberships, & Dues, Memberships, & Subscriptions Subscriptions Detail Description Construction Management Association ofAmerica Detail 350 Ain WA 150 1 -4030- 0750 -00 Non - Capital Equipment $5,000 1- 4030 - 0750 -00 Non - Capital Equipment 5,000 Inspection Related Tools & Equipment 1,400 Locator 3,600 1 -4030- 0760 -00 Office Expense $850 1 -4030- 0760 -00 Office Expense 350 Office Supplies 350 1 -4030- 0760 -30 Books & Publications 500 Code Books 500 1 -4030- 0810 -00 Professional Development $1,800 1 -4030- 0810 -00 Professional Development 1,800 Inspector Certification 1,200 Training 600 Section Total $$,150 Engineering Budget Division Detail (FY 2014/15) Water Quality Division Primary GIL Category I Category L --- Sub Acct No./Sub Category I Sub Ac t I Detail Item Description Detail Amt. 1-4040-0600-00 $61,160 1- 4040 -0600 -00 Totalc 3,000 System Disinfection /Blending 3,000 Contractual Services Contractual Services 1- 4040 - 0600 -12 350 Backflow Device Repair 350 Backflow Device Rep 1- 4040 - 0600 -25 5,590 Distribution System Disinfection 5,590 Distrubution System 1- 4040 -0600 -50 220 220 Uniforms 1 -0040 -0600 -60 52,000 Microbiological Examination 52,000 Microbiological Examination 1- 4040 -0640 -00 $1,663 1- 4040 -0640 -00 1,663 American Academy of Environmental Engineers 100 Dues, Memberships, & Dues, Memberships, & ABPA (Maldonado) 100 Subscriptions Subscriptions Water Purveyor Membership 1,000 American Society of Civil Engineers (Nguyen) 225 AW WA (Nguyen) 238 1 -4040- 0645 -00 $22,000 1- 4040 -0645 -10 22,000 Dept. of Health Services 22,000 Fees& Permits Dept of Health Services 1 -0040 -0710 -00 $2,000 1 -0040- 0710 -20 2,000 Wtr QualityTest Reagents 2,000 Materials Wtr Quality Test Kit Reagents 1 -0040 -0760 -00 $300 1- 4040 - 0760 -30 300 AWWABooks 300 Office Expense Books & Publications 1 -4040- 0810 -00 $850 1- 4040- 0810 -00 850 Training 850 Professional Development Professional Development 1- 4040 -0830 -00 $2,000 1 -4040- 0830 -00 2,000 Travel and Conferences 2,000 Travel& Conferences Travel and Conferences Section Total $89,973 Information Nb Supplies & Services Summary by Department Division FY 2014/15 Engineering Department Operations Water quality 44 Planning & Design VLM ANNUAL OPERATING BUDGET FISCAL' Yorba Linda Booster Pump Station Project VLM ANNUAL OPERATING BUDGET FISCAL' Finance All Department Organization Chart Finance Department Meter Reader (I ON- ®Yorba Linda Water District Organization Chart lob aasslfkatioe 1pa W FY 2014/15 Management I Supervisory/Confident ial B r ainin Uni[ = L ANNUAL OPERATING W 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 dedication to provide the highest level of service possible, we continually seek to implement solutions that utilize the most current technology and tools available. The department provides a wide level of service in the following areas: Administration, Accounting, Customer Service, and Meter Reading sections. Division Responsibilities ADMINISTRATION This Division of the Department is responsible for the establishment and maintenance of an effective financial accounting and utility billing system, which accurately accounts for the operations of the District and offers a framework for planning and analysis. ACCOUNTING The Accounting Division 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 Annual 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 Division is the first point of contact for our customers, especially 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. = —Lo ANNUAL OPERATING W METER READING The Meter Reading Division 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 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 Review current Comprehensive Multi -Year Financial Plan and modify as FRA needed. Prepare a high -level annual Budget Document and Annual Financial FRA Report and compete for recognition by the Government Finance Officers Association and by the California Society of Municipal Finance Officers. Adhere to the current Water Rules and Regulations and FR -4 Service /Developer Fees approved March 2012. Revise the Sewer Rules and Regulations Fees. Evaluate fees regularly for proper cost of service coverage. Research alternative investment methods to achieve the highest rate of FR -3 return while balancing the tolerable risk of investments. Review current workflow processes and practices in an effort to OE -1 streamline and /or automate to increase efficiencies. Continue to record and report the fairly stated financial activities of the FRA District in a timely and transparent manner to the Board and member agencies. Continue to improve communications of the District's financial information FRA to the Board, member agencies, management, and the financial community. Work in coordination with IT to implement a district wide paperless OE -1 processing system. Continue to provide Finance staff with cross - training opportunities. WEA Manage District Cash Flow to Maximize Investment Income FR -3 Record and report accurate financial obligations payable from the FRA Districts operating and capital funds /reserves Performance Measures 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 FYE 2014 Reserves Water Sewer Water Sewer Maintenance Employee Water Debt COP Bond Water Capital Sewer Capital Operating Operating Emergency Emergency Reserve Reserve Service 2008- Reserve Replacement Replacement w Estimated June 30, 2014 Balance Minimum Reserve Target Note: Water Capital Replacement and Sewer Capital Replacement reflect annual contribution amounts, not target balances. 3 2.5 2 1.5 1 0.5 0 Debt Service Ratio FY 09 -10 FY 10 -11 FY 11 -12 FY 12 -13 FY 13 -14 FY 14 -15 +Debt Ratio —0— Requirement Note: FY 08/09, FY 09/10, FY 10/11, and FY 11/12 are actual. FY 12/13 is projected and FY 13/14 is forecasted. 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Total Online Customers )n -line Customers by Category and Year I LId I Auto Pay One Time Paperless Billing ■ FY 2009/10 ■ FY 2010/11 ❑ FY 2011/12 ■ FY 2012/13 Accomplishments Fiscal Year 2013/14 j - 11 Paper Bill • Staff received Microsoft Office and Cogsdale training to enhance workflow efficiencies • Successfully modified the billing system and water bill templates to reflect new water and meter rates effective July 1, 2013 • Created multi - layered map for tracking meter replacement, stuck meters and other troubleshooting for the years 2011 to 2013. • Successfully activated 2,264 new customer accounts. • Successfully responded to 1,714 customer service requests for high bills, meter replacements and other services • Submitted and received a Distinguished Budget Presentation Award for FY 2013/14 from the Government Finance Officers Association for a third consecutive year VLW ANNUAL OPERATING BUDGET FISCAL' • Began operating test bench meter test bench for high bill complaints not resolved via the normal protocol and used to test rebuilt meters before they are returned to service (pictured). • Resequenced and divided the largest meter - reading route in the District (888 meters) into two separate routes, allowing both routes to be billed for efficiently. • Upgraded the Cogsdale Customer Service Management computer module to the newest version. • Implemented Customer Service Quick Pay computer module, allowing customers the option to make a one -time payment via the District website. • Successfully converted to a more user - friendly version of the Online Bill Payment system. • Streamlined and automated the Jumper /Meter installation tracking process. • Completed the District's FY 2012 -13 CAFR, receiving an unqualified opinion and the GFOA award for Excellence in Financial Reporting for the fourth consecutive year. Ell k- Finance Personnel Summary Proposed Department FY 2010/11 FY 2011 /12 FY 2012/13 FY 2013/14 FY 2014/15 Administration Finance Director 1.0 - - - - Finance Manager - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Accounting Accounting Assistant 1 1.0 1.0 1.0 1.0 1.0 Accounting Assistant II 1.0 1.0 1.0 1.0 1.0 Senior Accountant 1.0 1.0 1.0 1.0 1.0 Storekeeper 1.0 - - - - 4.0 3.0 3.0 3.0 3.0 Customer Service /Billing Customer Service Rep 1 1.0 1.0 1.0 1.0 - Customer Service Rep II 1.0 1.0 1.0 1.0 2.0 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 1 2.0 2.0 2.0 2.0 1.0 Meter Reader II 2.0 2.0 2.0 2.0 2.0 Meter Services Lead 1.0 1.0 1.0 1.0 1.0 Meter Services Rep. - - - - - 5.0 5.0 5.0 5.0 4.0 Department Totals 15.0 14.0 14.0 14.0 13.0 1� Finance Department Budget (FY 2014/15) FY 2013/14 FY 2014/15 Budget Budget Expenses (Operating) Salary Related Expenses Salaries $ 886,971 $ 843,820 Fringe Benefits $ 187,123 $ 162,275 Overtime $ 13,200 $ 6,200 Mandatory Benefits $ 110,671 $ 104,142 Total Salary Related Expenses $ 1,197,965 $ 1,116,437 Supplies & Services Communications $ 98,200 $ 101,400 Contractual Services $ 98,640 $ 101,870 Dues & Memberships $ 785 $ 785 Fees & Permits $ 101,365 $ 121,090 Insurance $ - $ 600 Materials $ 25,000 $ 25,000 District Activities & Events $ 1,050 $ 1,050 Maintenance $ 300 $ 300 Non - Capital Equipment $ 950 $ 950 Office Expense $ 14,050 $ 14,050 Professional Services $ 33,360 $ 27,660 Professional Development $ 3,160 $ 3,830 Travel & Conferences $ 5,300 $ 3,900 Uncollectible Accounts $ 25,000 $ 40,000 Supplies & Services Sub -Total $ 407,160 $ 442,485 Finance Budget Division Detail (FY 2014/15) Administration Division Primary GIL Category Sub Acct Total 1- 3010 -0600 -00 $400 1- 3010 - 0600 -00 400 Contractual Services Contractual Services Detail Description ,. Check signature plate 400 1- 3010 -0640 -00 Dues, Memberships, & Subscriptions $425 1- 3010 -0640 -00 Dues, Memberships, & Subscriptions 425 CSMFO 110 CMTA 155 GFOA 160 1- 3010 - 0690 -00 Insurance $600 1- 3010 - 0690 -00 Insurance 600 Honesty Bond 600 1- 3010 - 0715 -00 District Activities & Events $400 1- 3010 -0715 -50 Meeting5upplies 400 Meeting Supplies 400 1- 3010 -0780 -00 Professional Services $27,160 1- 3010 - 0780 -00 Professional Services 27,160 Auditors 18,960 Financial Plan Model Consulting 5,000 CAF R On l i n e 2,000 CDAR Preparation 1,200 1- 3010 -0810 -00 Professional Development $925 1- 3010 - 0810 -00 Professional Development 925 CMTASeminars 300 2014 Government Tax Update 325 CSMFO Workshops 300 1- 3010 -0830 -00 Travel& Conferences $1,500 1- 3010 - 0830 -00 Travel& Conferences 1,500 CaIPESAnnual Conference 500 CSMFO Conference 1,000 Section Total $31,4101 1 Finance Budget Division Detail (FY 2014/15) Accounting Division Primary GIL Category Category 1- 3020 -0580 -00 $400 Communications Sub Acct No./Sub Category Sub Acct 1- 3020 -0580 -00 400 Communications Detail Item Description Detail Publish Unclaimed List 400 1- 3020 - 0600 -00 Contractual Services $860 1- 3020 -0600 -00 Contractual Services 860 Green Shades 500 Doculivery 360 1- 3020 - 0640 -00 Dues, Memberships, & Subscriptions $110 1- 3020 - 0640 -00 Dues, Memberships, & Subscriptions 110 CSMFO 110 1- 3020 -0645 -00 Fees & Permits $34,090 1- 3020 - 0645 -00 Fees & Permits 915 CSMFO Budget Reviewer Fee 150 GFOA CAFR Reviewer Fee 435 GFOA Budget Award Reviewer Fee 330 1- 3020 - 0645 -50 Bank Service /Fees 33,175 Analysis Fees (Avg$2550 /mo) 33,000 Safe Deposit Box Fee 150 Annual Bankcard Fee 25 1- 3020 -0715 -00 District Activities and Events $400 1- 3020 - 0715 -50 Meeting Supplies 400 Meeting5upplies 400 1- 3020 -0730 -00 Maintenance $300 1- 3020 - 0730 -00 Maintenance 300 Small Office Equipment Maintenance 300 1- 3020 -0760 -00 Office Expense $12,500 1- 3020- 0760 -00 Office Expense 9,000 Office supplies 9,000 1- 3020 -0760 -10 Paper 3,500 Paper 3,500 1- 3020 -0810 -00 Professional Development $1,000 1- 3020 - 0810 -00 Professional Development 1,000 StaffTraining 1,000 1- 3020 -0830 -00 Travel & Conferences $1,500 1- 3020 - 0830 -00 Travel & Conferences 1,500 CSMFOConference 1,000 PIPERS Annual Conference 1 500 Section Total $51,160 Finance Budget Division Detail (FY 2014/15) Customer Service /Billing Division Primary GL Category 1- 3030 - 0580 -00 Communications Category Total $101,000 Sub Acct No./Sub Category 1- 3030 - 0580 -00 Communications Detail Item Description Sub Acct I Total 500 UPS /Fed Ex /Other Detail 500 1- 3030 - 0580 -10 Postage 5,500 Postage Metered 5,500 1- 3030 - 0580 -22 Postage - Infosend 95,000 Postage -Infosend 95,000 1- 3030 - 0600 -00 Contractual Services $97,450 1- 3030 - 0600 -00 Contractual Services 1,730 Post Office Box 250 Post Master - Lockbox 1,480 1- 3030 - 0600 -21 Customer Credit Check 5,600 Online - Credit Checks 5,000 Online - Utility Exchange 600 1- 3030 - 0600 -22 Pri nti ng of Bi Its - Infosend 78,620 Info Send E -Bill Fees 19,000 DOXO 1,620 MailingService 58,000 1- 3030 - 0600 -30 Warranties & Service 1,500 Meter & Scale Lease Agreement 1,500 1- 3030 - 0600 -55 Answering Service 10,000 Phone AnsweringService 10,000 1- 3030 - 0645 -00 Fees & Permits $87,000 1- 3030 - 0645 -50 Ba nk Services /Fees 87,000 Lock Box Services 32,000 Credit Ca rd & Auto Dr Processing 55,000 1- 3030 - 0715 -00 District Activities and Events $250 1- 3030 - 0715 -50 Meeting Supplies 250 MeetingSupplies 250 1- 3030 - 0760 -00 Office Expense $1,550 1- 3030 - 0760 -00 Office Expense 1,550 Postage Machine Supplies 250 Forms /Pads/Tags /Deposit Slips 1,300 1- 3030 - 0780 -00 Professional Services $500 1- 3030 - 0780 -09 Collection Services 500 Collection Agency Fee 500 1- 3030 - 0810 -00 Professional Development $1,245 1- 3030 - 0810 -00 Professional Development 1,245 Customer ServiceTraining (minof2classesPP) 1,245 1- 3030 - 0830 -00 Travel & Conferences $200 1- 3030 - 0830 -00 Travel & Conferences 200 Mileage 200 1- 3030 - 0850 -00 Uncollectible Accounts $40,000 1- 3030 - 0850 -00 Uncollectible Accounts 40,000 Uncollectible Accounts 40,000 Section Total $329,195 Finance Budget Division Detail (FY 2014/15) Meter Reading Division Primary GIL Category Category Sub Acct No./Sub Category I SubAcct I Detail Item Description Detail To 1- 3040- 0600 -00 $2,300 1- 3040- 0600 -00 Total 2,300 Neptune Maintenance Agreement 2,300 Contractual Services Contractual Services 1- 3040 - 0640 -00 $250 1- 3040 - 0640 -00 250 AWWA 250 Dues, Memberships, & Dues, Memberships, Subscriptions Subscriptions 1- 3040 -0710 -00 $23,000 1- 3040 - 0710 -58 23,000 Registers 23,000 Materials Registers 1- 3040 - 0750 -00 $800 1- 3040 - 0750 -00 800 Meter Shop Equipment 500 Non - Capital Equipment Non - Capital Equipment Construction Meter Locks 300 1- 3040 - 0810 -00 $860 1- 3040 - 0810 -00 700 Training classes 700 Professional Development Professional Development 1- 3040- 0810 -40 160 Certificate Reimbursement 160 Certificate Reimbursement 1- 3040 -0830 -00 $700 1- 3040 - 0830 -00 700 AWWAConference 700 Travel & Conferences Travel & Conferences Section Total $27,910 4 Supplies & Services Summary by Department Division FY 2014/15 Finance Department Operations BOD CS & Billing Information Technology Human Resources Admin Administration - -__, Accounting _Engineering Meter Reading VLM ANNUAL OPERATING BUDGET FISCAL' Human Resources ®Yorba Linda Water District Organization Chart FY 2014/15 Department Organization Chart Human Resources Department Job Classification Legend Management Part -Time y Supervisory /Confidential I Bat ainin Unit LM 2 ANNUAL OPERATING 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 providing professional development opportunities for employees. Division Responsibilities: HUMAN RESOURCES ADMINISTRATION This Division supports operating departments by providing a wide range of personnel services such as benefits administration (health, dental, optical, life insurance and an employee assistance program), coordinating recruitment and selection, classification and compensation programs, as well as the administration of the District's personnel rules, policies and procedures. Other functions include the maintenance of employee personnel files, training records, medical files and employee performance evaluation reports. This Section promotes employee development and the sharpening of employees' skills and knowledge through training programs, as well as providing career development opportunities. The Administration Section also provides employer /employee relations administration services and contract negotiations, which includes employee and supervisory counseling on personnel policies, procedures and practices, providing assistance in the handling of employee grievances and disciplinary actions as well as implementation of new labor contract provisions. RISK MANAGEMENT This Division administers the District's self- insured liability, worker's compensation and loss prevention programs. The District's liability, property and workers compensation insurance is provided by the Association of California Water Agencies Joint Powers Insurance Authority (ACWA- JPIA). The Risk Management Section strives to protect the personnel and physical assets of the District from injury and financial consequences of accidental losses through a program of prevention, avoidance and insurance procurement. The Section is responsible for cost - effective management of tort liability claims filed against the District. It strives to process and bring closure as expeditiously as possible to all claims and engages the input of other District departments during the investigation and resolution process. SAFETY The Safety Division actively looks to reduce the District's accidental loss exposure through continuous identification and measurement of existing hazards and through the implementation of policies and procedures to eliminate unsafe working conditions. Other functions include the coordination and implementation of safety and training programs to ensure 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. Objective 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 4 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. 30 25 20 15 10 5 0 2009 -10 2010 -11 Development Program 2011 -12 2012 -13 2013 -14 � Enrolled —4F— Completed During FY 2011/12 four recruitments resulting in 299 applications were processed, eleven recruitments were conducted resulting in 727 applications processed in FY 2012/13 and eleven recruitments were conducted with 303 applications were processed in FY 2013/14. VLM l ANNUAL OPERATING BUDGET FISCAL' 160 140 120 100 80 Z fi0 40 20 0 201112 Number of Applications Processed 2012.13 Fiscal Year 65 M., 21 2013 -14 Position ■ Acct Asst 1 ■ Acct As II ■ Associate Engineer ■Lust Svc Rep II ■ Engineering Secretary Finance Director ■ Mana ■GIS Gene Techniea9 cun ger HR Tech ■ I- t—entatbn Tech ■ Main[ Dist Operator II ,= Plant Operator II Public Affair Intern Public Inru Sp"Wist During calendar year 2009, the District experienced 3 workplace injuries, which resulted in a total of 91 days away from work and 0 days of job restriction. During calendar year 2010, the District experienced 8 workplace injuries, which resulted in a total of 1 day away from work and 1 day of job restriction. During calendar year 2011, the District experienced 4 workplace injuries, which resulted in a total of 71 days away from work and 2 days of job restriction. During calendar year 2012, the District experienced 5 workplace injuries, which resulted in 0 days away from work and a total of 13 days of job restriction. During calendar year 2013, there were five workplace injuries with ten days away from work and 90 days of restriction. During calendar years 2009, 2011 and 2013 the days away from work are significantly higher because the nature of the incidents required a longer recovery time. VL Mk ANNUAL OPERATiit1G W 100 91 90 80 70 60 50 40 30 20 10 0 2009 Workplace Injuries 71 13 8 q 2 5 0 � 1 _. _J= 0 2010 2011 2012 ■ Injuries ■ Days Away from Work ® Days of Job Transfer /Restriction Accomplishments Fiscal Year 2013 -14 10 2013 • Arranged all aspects of the annual Health Benefits Fair and annual flu shots. • Conducted open enrollment for health benefits. 90 • Coordinated open enrollment for flexible benefits plan and optional life insurance. • Arranged for the retirement luncheon for Hank Samaripa. • Coordinated the annual Employee Recognition Luncheon & District Picnic. • Conducted /coordinated the following workplace training: o JPIA Annual Training Conference o NeoGov User Conference o ACWA/JPIA SoCal HR Group Meeting o California Society of Municipal Finance o Officers (CSMFO) Affordable Care presentation o Public Employees' Pension Reform Act Workshop o CalPERS Update, GASB 68 and the Economy of Pensions 0 Federal /State Leaves of Absence, Medicare, COBRA & ACA r � ANNUAL OPERATING Conducted /coordinated the following Safety training: 0 10 -Hour CalOSHA construction safety class 0 Global Harmonization System of Hazard 0 Communication (GHS) webinar 0 GHS mandated training for new employees 0 Pacific Safety Council: Confined Space Entry 0 OSHA Arc Flash Training 0 Pacific Safety Council: Certified Occupational Safety Specialist (COSS) 40 -hour program 0 Defensive Driving 0 Field Ergonomics (Operations /Production) 0 Traffic Control and Flagger Safety (Operations /Production) 0 Fire Safety /Fire Extinguishers (Operations /Production) 0 Confined Space Awareness and Rescue (Operations /Production) • Coordinated the following workshops open to all District employees; 0 Budgeting Workshop (Shay Olivarria) 0 Debt Handling & Planning for Retirement (Shay Olivarria) • Coordinated attendance at the following LCW Workshops: 0 Public Sector Employment Law Update 0 Orange County Human Resources Consortium 0 AB 1234 Mandatory Ethics Training Webinar 0 LCW 2014 Public Sector Employment Law Conference Revised /developed /implemented Rules, Policies and Procedures: 0 7010 Human Resources 0 Employee Time -Off Request Policy 0 Employee Performance Evaluation Procedure 0 7010 Risk Management 0 Facilities Use Policy 0 7030 Safety 0 Confined Space Program and Entry Procedures 0 Rescue Team Standard Operating Procedure (SOP) and training 0 Injury Illness Prevention Program (IIPP) 0 Trenching /Excavation Safety • Audited all District required OSHA training and put a calendar plan in place. • Reorganized the Safety Committee & Developed the New Hire Safety Orientation Human Resources Personnel Summary 1.0 1.0 1.0 1.0 0.5 Safety Safety & Training Coordinator - - - 1.0 1.0 1.0 1.0 Department Totals 3.0 3.0 3.0 4.5 4.0 Proposed Department FY 2010/11 FY 2011 /12 FY 2012/13 FY 2013/14 FY 2014/15 Administration Human Resources & Risk Mgr 1.0 1.0 1.0 1.0 1.0 Human Resources Analyst - - - - 0.5 Human Resources Technician 1.0 1.0 1.0 1.0 1.0 Human Resources Clerk - - - 0.5 - 2.0 2.0 2.0 2.5 2.5 Risk Management Human Resources Analyst - - - 1.0 0.5 Personnel Technician 1.0 1.0 1.0 - - 1.0 1.0 1.0 1.0 0.5 Safety Safety & Training Coordinator - - - 1.0 1.0 1.0 1.0 Department Totals 3.0 3.0 3.0 4.5 4.0 1� Human Resources Department Budget (FY 2014/15) Expenses (Operating) Salary Related Expenses Salaries Fringe Benefits Overtime Mandatory Benefits Total Salary Related Expenses Supplies & Services Communications Contractual Services Dues & Memberships Insurance Materials District Activities & Events Office Expense Professional Services Professional Development Travel & Conferences Supplies & Services Sub -Total FY 2013/14 FY 2014/15 Budget Budget $ 377,778 $ 373,949 $ 76,905 $ 75,009 $ - $ 1,689 $ 41,977 $ 44,874 $ 496,660 $ 495,521 $ 14,000 $ 3,000 $ 37,500 $ 34,150 $ 5,500 $ 5,635 $ 298,000 $ 311,500 $ 1,000 $ 1,400 $ 17,650 $ 17,510 $ 725 $ 700 $ 68,500 $ 70,700 $ 24,900 $ 25,500 $ 7,000 $ 5,100 $ 474,775 $ 475,195 Human Resources Budget Division Detail (FY 2014/15) Administration Division Prima GLCategory 1- 7010 - 0580 -00 Communications Category Total $3,000 Sub Acct No./Sub Category 1- 7010 - 0580 -05 Advertising Sub Acct 3,000 Detail Item Description Job Advertising Expenses Detail 3,000 1- 7010 - 0600 -00 Contractual Services $29,300 1- 7010 - 0600 -00 Contractual Services 13,500 COBRASolutions 1,500 Shred -it 1,500 CPSTesting 2,000 Neo Gov - Online Applications 3,000 Neo Gov - Performance Evaluations 5,000 Flex Advantage 500 1- 7010 - 0600 -10 DOTPhysicals 5,000 Fit for Duty 5,000 1 -7010- 0600 -20 Post - Employment Physicals 1,500 Post - Employment Physicals 1,500 1- 7010 - 0600 -30 Health & Welfare 9,300 Interactive Process 8,000 Flu Shots 1,300 1- 7010 - 0640 -00 Dues, Memberships & Subscriptions $4,485 1- 7010 - 0640 -00 Dues, Memberships & Subscriptions 4,485 SHRM Membership 200 LCW Consortium 3,200 PELRAC 600 Jobs Available Subscription 85 CALPELRAAnnual Dues 400 1- 7010 - 0715 -00 District Activities& Events $15,810 1- 7010 - 0715 -10 District Events - Employee 4,500 Employee Picnic 2,500 Employee Recognition Event (Holiday Luncheon) 2,000 1- 7010 - 0715 -20 District Events - Employee Recognition 4,810 Retiree Event (2) 4,000 Retiree Recognition (2) 210 Service Recognition 600 1 -7010- 0715 -30 District Events - Benefit Fair 2,000 Benefit Fair 2,000 1- 7010 - 0715 -40 District Events - Employee 3,000 Employee Promotional Items 3,000 1- 7010 - 0715 -50 Meeting Supplies 1,500 Meeting/Tra ining Supplies 1,500 1- 7010- 0760 -00 Office Expense $700 1- 7010 -0760 -00 Office Expense 250 Office Supplies 250 1- 7010 - 0760 -30 Books & Publications 450 Books & Publications 200 Public Retirement Journal 250 1- 7010 - 0780 -00 Professional Services $68,700 1- 7010 - 0780 -05 Legal Services 55,000 Liebert Cassidy Whitmore Employment Law 55,000 1- 7010 - 0780 -55 Investigations 13,700 Investigations, Backgrounds, and EE Relations 13,700 1- 7010- 0810 -00 Professional Development $11,500 1- 7010 - 0810 -00 Professional Development 11,500 LCW 4,500 On- goinglobTraining 2,000 Great Plains Training -HR Module 5,000 1 -7010- 0830 -00 Travel & Conferences $3,600 1- 7010 - 0830 -00 Travel & Conferences 3,600 PELRAC (3 employees) 600 LCW (3 employees) 2,000 Public Retirement Seminar (4 employees) 1,000 Section Total $137,095 Human Resources Budget Division Detail (FY 2014115) Risk Management Division Primary GL Category Category Total I Sub Acct No./Sub Category I Sub Acct I Detail Item Description Detail Amt, 1-7020-0600-00 $1,850 1- 7020 - 0600 -00 Total 1,850 DOT Physicals 1,500 Contractual Services Contractual Services AED Medical Director Oversight 350 1- 7020 - 0640 -00 $100 1- 7020 - 0640 -00 100 PARMAMembership 100 Dues, Memberships, & Dues, Memberships, Subscriptions Subscriptions 1- 7020 - 0690 -00 $311,500 1- 7020- 0690 -10 8,000 Tort Claims - <15K 8,000 Insurance Tort Claims 1- 7020 - 0690 -20 243,500 ACWA-JPIA Liability Insurance 243,500 Liability Insurance 1- 7020 - 0690 -30 60,000 ACWA- 1PIAProperty Insurance 60,000 Property Insurance 1- 7020 - 0780 -00 $2,000 1 -7020- 0780 -00 2,000 First Aid - Workers Compensation 2,000 Professional Services Professional Services 1- 7020 - 0810 -00 $1,000 1- 7020 - 0810 -00 1,000 Risk Management Training 1,000 Professional Development Professional Development 1- 7020 - 0830 -00 $1,500 1- 7020 - 0830 -00 1,500 PARMAConference(lemployee) 1,500 Travel & Conferences Travel & Conferences Section Total $317,950 I qt Human Resources Budget Division Detail (FY 2014/15) Safety Division Primary GIL Category Category Sub Acct No./Sub Category To I 1-7030-0600-00 $3,000 1- 7030 - 0600 -00 Contractual Services Contractual Services Sub Acct I Total 3,000 Detail Item Description I HEP B Detail Amt I 1,000 Industrial Hearing Management 2,000 1- 7030 - 0640 -00 Dues, Memberships, & Subscriptions $1,050 1- 7030 - 0640 -00 Dues, Memberships, & Subscriptions 1,050 Cal -OSHA Reporter 500 PASMA 200 Pacific Safety Council -COSS 350 1- 7030 -0710 -00 Materials $1,400 1- 7030 - 0710 -00 Materials 1,400 First Aid Kit 200 First Aid Supplies (Field Backpacks) 1,200 1- 7030 -0715 -00 District Activities and Events $1,700 1- 7030 - 0715 -50 Meeting Supplies 1,700 Meeting/Training5upplies 500 Safety Recognition Events 1,200 1- 7030 -0810 -00 Professional Development $13,000 1- 7030 - 0810 -10 OSHACompliance 13,000 OSHACompliance Training 13,000 Section Total $20,150 W y.11 Z J vO- tL wU) OG�( �O Q OPERATIONS Q TEOHNp1" ��'� v o ca RISK °~ pNESS, Q a pREpp,RE RRUp11(�. y =SAM Z All BUSINESS INTE .rEG�C CUSTOMERS a 41 SIRA CY cn GE N z0 EtA ER N-r ME �E Y �C" PO RI N1ANA > �oWAUt4lT 0 UAMAGE LIFESA' z AF ETY U pLpNS _ F _oou z C:) 5 -TER U_ STORMS o o BEN REC4 SE ES in ul Z 1 Rp MA71ON 1 5. LY O C w m- 0 Supplies & Services Summary by Department Division Operations Information Technology Finance F llgireel ing FY 2014/15 Human Resources Department lent Safety Administration VLM ANNUAL OPERATING BUDGET FISCAL' Information Technology 0 Department Organization Chart Information - Technology Department I.T. Manager G.I.S. Info. Systems S.C.A.D.A. Analyst I Administrator Administrator Info. Systems Systems Analyst/ Instrumentation Technician I Programmer Technician ®Yorba Linda Water District Organization Chart lob Classification Lposd FY 2014/15 Management Partilme Su wiso /Confidential Bar ainin Un[ Lo ANNUAL OPERATING 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, including the Geographic Information System (GIS) and the Supervisory Control and Data Acquisition (SCADA). Division 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 display data on GIS maps; preparing charts, graphs and displays; coordinating system needs with other departments; defining requirements for end users; coordinating services with contract consultants for maintenance agreements; researching information from records, surveys and assessor maps; performing field data collection; programming and scripting for customization of software applications. SUPERVISORY CONTROL AND DATA ACQUISITION ( SCADA) SCADA is responsible for the communications and the hardware related to the District's SCADA system. Communications includes radios, lease lines, and all other means for ensuring SCADA remote sites communicate with the District's headquarters. Additionally, SCADA is responsible for all sensors in the field that collect and saving about 5 year of historical information. The SCADA system provides Operators advanced fully automated controls 24/7/365 to meet the Districts objectives. 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 Integrate GIS with Hydraulic Model, CMMS, Valve Exercise and Hydrant Flushing SP Goal OE -1 Replace and reprogram various PLCs OE -1 Improve radio communications OE -1 Implement Field GIS software (Underground Service Alert, As -built Lining and Red - lining) OE -1 Install a reliable backup power system at remote control sites. OE -1 Performance Measures HelpDesk Tickets Processed ■ Closed ■ On -Hold Open 2 101 100 99 98 97 r d 96 95 94 93 92 QaQ'L Q�Q o� r ���i �Q �'0� `c`'�r eracQ, 0,10 �r�et ,�V `owe 41, `fie a0` J -1-41, ill` � FY 2012 � FY 2013 YTD (Goal Note: Server Up Time refers to the percentage of time each server is available for usage. Includes planned maintenance shutdowns. Accomplishments FY 2013/14 • Successfully Implemented Computer Maintenance and Management System • Upgraded Dynamics GP from version 10 to version 2013 • Data archive solution purchased and installed • Implemented District network Improvement Project —Phase I by replacing older switches • Reviewed and corrected Dynamics GP HR & Payroll Module • Replaced Domain Controller Servers (1 physical and 1 virtual) • Improved Records Management Program • Cell phone program implemented to keep cell phones contacts updated • Doubled internet connectivity bandwidth through Time Warner fiber • Replaced and reprogramed Well -5 PLC completed • Replaced and reprogramed Paso Fino PLC • Replaced and reprogramed Well -18 PLC completed • Replaced and reprogramed Timber Ridge PLC • Installed ring switch system in the well field replacing 10 year old fiber industrial switches • Corrected difficult Highland BPS Motor control Center problem(s) found post warranty • Implemented a new contract for CMMS and GIS Services Accomplishments FY 2013/14, Continued • Printed Sewer Atlas Books • Adopted GIS Maintenance Procedure • Upgraded GIS to the latest version • Made the Wireless link between Box Canyon BPS and Hidden Hills Reservoir for Box Canyon BPS redundant communications 0 aair oft , backup guide in oima ionm processing S CID anr� nn nr� media firms �� N I Y I I I I I 1 1 P 9p. iscpo plays ""= YS Kku Ppropria�e ieaal roced IOSt wp s federal '!appendix, torage - Wiwi" conlingency include name -o alternate te C= operallons iaruplian n., ErEllt functions may. personnel CAD requirements cfl fesiicg ClJ ANNUAILOPERATINGI-4,-,%CV, Information Technology Personnel Summary Proposed Department FY 2010/11 FY 2011 /12 FY 2012/13 FY 2013/14 FY 2014/15 Administration Assistant General Manager 0.5 - - - - Information Systems Manager - 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 Information Systems Information Systems Admin. 1.0 1.0 1.0 1.0 1.0 Information Systems Tech 1 1.0 1.0 1.0 1.0 1.0 Information Systems Tech II 1.0 1.0 1.0 1.0 - System Analyst/ Programmer - - - - 1.0 3.0 3.0 3.0 3.0 3.0 GIS GIS Administrator 1.0 1.0 1.0 1.0 - GIS Analyst - - - - 1.0 GIS Technician 0.5 0.5 0.5 0.5 - 1.5 1.5 1.5 1.5 1.0 SCA DA 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 7.0 7.5 7.5 7.5 7.0 44 Information Technology Department Budget (FY 2014/15) Supplies & Services Contractual Services $ FY 2013/14 $ FY 2014/15 Data Processing $ Budget $ Budget Expenses (Operating) $ 1,327 $ 1,622 Salary Related Expenses $ 11,275 $ 15,825 Salaries $ 623,479 $ 602,394 Fringe Benefits $ 100,390 $ 91,979 Overtime $ 10,400 $ 10,400 Mandatory Benefits $ 76,809 $ 75,102 Total Salary Related Expenses $ 811,078 $ 779,875 Supplies & Services Contractual Services $ 138,520 $ 143,120 Data Processing $ 170,730 $ 186,830 Dues & Memberships $ 1,327 $ 1,622 Materials $ 11,275 $ 15,825 District Activities & Events $ 300 $ 300 Maintenance $ 84,950 $ 79,250 Non - Capital Equipment $ 98,100 $ 98,950 Office Expense $ 19,175 $ 15,025 Professional Services $ 56,000 $ 91,500 Professional Development $ 16,800 $ 11,800 Travel & Conferences $ 9,300 $ 9,700 Supplies & Services Sub -Total $ 606,477 $ 653,922 IT Budget Division Detail (FY 2014/15) Administration Division Primary GIL Category I 1-6010-0830-00 Travel & Conferences Category I To $4,000 Sub Acct No./Sub Category Sub Acct I I Total 1- 6010 -0830 -00 4,000 Travel & Conferences Detail Item Description Detail Amt 1 1 Interop (April /May) 1,200 WinConnections (November) 2,800 Section Total $40000 IT Budget Division Detail (FY 2014/15) Information Systems Division Category Total $113,620 Sub Acct No./Sub Category 1- 6020 - 0600 -00 Contractual Services SubAcct Total 1,940 Detail Item Description Security Solutions: Annual Fire & BurglarAlarm Detail Amt 1 1,700 1- 6020 - 0600 -00 Contractual Services District Web Site Hosting 240 1- 6020 - 0600 -10 Data Hosting 1,200 FTP Today 1,200 1- 6020 - 0600 -20 Lease Agreements 15,500 Konica Minolta Operations Copier Lease 4,500 Konica Minolta Copier Leases for Admin Building 11,000 1- 6020 - 0600 -30 Warranties & Service Contracts 27,780 RMJ Tech. GPS Vehicle Tracking Service 20,000 APC Symmetra Data Center UPS On -Site Service Rene 3,780 Dell Hardware Service Contracts 4,000 1- 6020 - 0600 -32 Service for Cell Phones 25,000 Cell Phone Service(Verizon) 25,000 1- 6020 - 0600 -33 Mobile Broadband Service 11,000 Verizon Broadband Aircard Service inc. CMMS 11,000 1- 6020 - 0600 -34 Communication Lines 31,200 Time Warner Cable & Dedicated Internet Access 20x 16,200 AT &T District Lines 15,000 1- 6020 - 0620 -00 Data Processing $130,830 1- 6020 - 0620 -10 Software Purchases 4,500 CMMS Licensing 4,000 New Software 500 1- 6020 - 0620 -20 Software License Renewals 120,280 Solar Winds Orion Monitoring Tool Maintenance 10,000 VMWarevSphere (Essentials Plus Kit) Maintenance 6,000 Trend Micro NeatSuite Antivirus & Spyware 110lic 2,500 Lenel Onguard Software Support Agreement Renewal 250 Netmotion Mobility XE Premium Software 2,000 Laserfche Software Assurance Plan (LSAP) 4,780 Solar Winds Engineering's Toolkit Renewal 800 Novus Agenda Maintenance Renewal 4,000 Microsoft Volume License Renewals 28,000 CityWorks Annual Maintenance 12,000 GP & Cogsdale annual Maintenance 49,500 Enterprise Leave Managerfor Dynamics GP Maint. 450 1- 6020 - 0620 -30 Hardware Subscription Renewals 5,550 Watchguard x1250e Firewall UTM Renewal 2,900 BDR Monthly Charge for Offsite Backup Storage 300 Barracuda Spam Firewall Energizer Annual Renewal 750 Barracuda Message Archiver Energizer Annual Renew 1,400 PageR Monitoring 200 1- 6020 - 0620 -47 Cell Phone Supplies 500 Chargers 150 Batteries 200 Holsters & Covers 150 1- 6020 -0640 -00 Dues, Memberships, & Subscriptions $872 1- 6020 - 0640 -00 Dues, Memberships, & Subscriptions 872 Maximum PC 12 CPU 30 PC W orl d 50 Misc Memberships 250 Smart Computing 30 MSTech Net Plus Subscription 500 1- 6020 - 0710 -00 Materials $2,500 1- 6020- 0710 -00 Materials 200 Materials 200 1- 6020 - 0710 -49 Power Strips 100 Power Strips 100 1- 6020 - 0710 -51 Cabling 700 Duplex 50 /125 LC /LCfiber, CAT6A, CATSe patch cab 400 Adapters 100 DVI, VGA, DES, Display Port, HDMI, USB cables 200 1- 6020 - 0710 -60 Hardware Supplies 1,500 USB Drives USB Keys, SD /micro SD Cards 200 Desktop peripherals 900 Hardware supplies, AA& AAA batteries 400 1- 6020 -0715 -00 District Activities and Events $300 1- 6020 - 0715 -50 Meeting Supplies 300 1 Meeting Supplies 300 IT Budget Division Detail (FY 2014115) Information Systems Division, Continued 1- 6020 - 0730 -00 Maintenance $6,900 1- 6020 - 0730 -00 Maintenance 850 Row Maintenance 850 1- 6020 -0730 -06 Printer Servicing 1,200 HP Printer Servicing 1,200 1- 6020 -0730 -11 Telco /Phone Servicing 2,000 Building Line Repairs 400 Cell Phone Servicing/replacement /repair 800 Phone Switch Servicing 400 Security Equipment Maintenance & Repair 400 1- 6020 - 0730 -30 Cabling& WAN 1,500 Cabling(CAT6A, CATSe, fiber) installation & rep 1,500 1- 6020 -0730 -60 UPS &Back-up Power systems 1,350 APC Symmetra Data Center UPS battery modules (6) 1,000 UPS replacement batteries for desktops 350 1- 6020 -0750 -00 Non - Capital Equipment $57,500 1- 6020 -0750 -00 Non - Capital Equipment 2,000 Non - Capital Equipment 2,000 1- 6020 -0750 -06 Desktops 10,600 Dell Optiplex PCs 10,000 Thin Clients 600 1- 6020 -0750 -07 Notebooks 31,200 CMMS Notebooks and Equipment 20,000 Dell Notebooks 6,400 Tablets (Field /Eng) 4,800 1-6020 -0750 -08 Printers 2,000 Replacement Printers 2,000 1- 6020 - 0750 -09 Networking Equipment 4,900 KVM System Interface Pods 200 Network Storage Devices 1,500 Network Office /cubicle Switches 200 Misc Network Equipmentsuch as Transceivers 800 Data Center Switches 2,200 1- 6020 -0750 -30 Tools & Equipment 800 Data Centerequipment (Rack & Cabinet) 800 1- 6020 -0750 -35 Security 1,500 HID proximitybadges for building access 500 FABS 1,000 1- 6020 -0750 -41 Audio/Visual 3,500 Replacement LCD Monitors 3,000 Digital Cameras (Ops) 500 1- 6020 -0750 -45 Telco 1,000 Phones & Accessories 1,000 1- 6020 - 0760 -00 Office Expense $10,325 1- 6020 -0760 -00 Office Expense 100 Business Cards 100 1- 6020 -0760 -21 Printer Supplies 9,225 HP LaserJet Printers & Copiertoners fusers etc 9,000 Konica Minolta Copier /Printer Supplies for Ops 175 Konica Minolta Copier /Printer Supplies Mail Room 50 1- 6020- 0760 -26 Desktop Supplies 1,000 Mice 200 Blank DVD +R, CD Disc, USB Keys etc. 200 Keyboards 400 Misc 200 1- 6020 - 0780 -00 Professional Services $40,000 1- 6020 -0780 -11 Network /Hardware Consulting 10,500 Network Engineering Consulting 10,500 1- 6020 - 0780 -20 Software Consulting 28,500 Software Consulting 3,500 CMMS Consulting EEC 25,000 1- 6020 -0780 -50 Technical Support 1,000 Technical Support 1,000 1.6020 -0810 -00 Professional Development $2,500 1- 6020 -0810 -00 Professional Development 2,500 VIA Ware Training 2,500 1- 6020 -0830 -00 Travel & Conferences $3,600 1- 6020 - 0830 -00 Travel & Conferences 3,600 Intersect (October) R.S. 2,200 CityWorks User's Conference (June) R.S. 1,000 Mileage and Travel Reimbursement 400 Section Total $368,947 IT Budget Division Detail (FY 2014/15) GIS Division ,. 1- 6030- 0620 -00 $21,400 1- 6030 - 0620 -20 Data Processing Software License Renewals 21,400 Detail Item DesviWo—n InfoWater Renewal & Upgrade Floating License 4,700 Freeance Maintenance 2,000 ArcEditorConcurrent Maintenance (2) 3,200 ArcGISServerStandard Enterprise Maintenance 6,000 ArcViewSingle Use Maintenance 500 ArclnforConcurrent Maintenance 3,500 AutoCAD & Map 3D Maintenance 1,500 1- 6030 - 0750 -00 Non - Capital Equipment $9,600 1- 6030 -0750 -20 Printers 5,500 New Color Scanner 5,500 1- 6030 - 0750 -30 Tools & Equipment 4,100 GIS Miscellaneous Tools (Hardware) 4,100 1- 6030 -0760 -00 Office Expense $4,400 1- 6030 - 0760 -21 Printer Supplies 4,400 Atlas Water &Sewer Supplies 4,400 1- 6030 -0780 -00 Professional Services $20,000 1- 6030 - 0780 -20 Software Consulting 20,000 GIS StaffAugmentation & Cons. Services, EEC 20,000 1- 6030 - 0810 -00 Professional Development $5,000 1- 6030 - 0810 -00 Professional Development 5,000 GIS Analyst Training 2,000 GIS and CMMSTraining, EEC 3,000 1- 6030 - 0830 -00 Travel & Conferences $700 1- 6030 - 0830 -00 Travel & Conferences 700 GIS ESRI User Conference 500 Mileage and Travel Reimbursement 200 Section Total $61,100 IT Budget Division Detail (FY 2014/15) SCADA Division 1- 6040 - 0600 -00 $29,500 Contractual Services 1- 6040 -0600 -30 Warranties & Service Contracts .. ,. 5,500 Cisco Smartnet premium (for Cisco 1842 routers) Cisco Smartnet premium (forCisco 3825 router) Dell Servers Service contracts ,. 1,500 2,500 1,500 1- 6040 -0600 -34 Communication Lines 24,000 Communication Lines 24,000 1- 6040- 0620 -00 Data Processing $34,600 1- 6040 -0620 -10 Software Purchases 1,600 Misc. software 1,600 1- 6040 -0620 -20 Software License Renewals 33,000 Wonderware Premium Support 29,500 PLC Programing Support Proworks32 & Unity 3,500 1- 6040 - 0640 -00 Dues, Memberships, & Subscriptions $750 1- 6040 -0640 -00 Dues, Memberships, & Subscriptions 750 International Society of Automation 250 AW WA 500 1- 6040 - 0710 -00 Materials $13,325 1- 6040 -0710 -50 Electrical Supplies 3,800 Electrical Supplies 3,800 1- 6040 -0710 -60 Hardware Supplies 3,000 Hardware Supplies 3,000 1- 6040 -0710 -72 Calibration Supplies 850 Calibration Supplies 850 1- 6040 -0710 -78 Meters & Sensors 5,675 Integral Manifolds for Flow& Pressure Meters 1,175 Level Indicators 3,000 Flow Meter 1,500 1- 6040 - 0730 -00 Maintenance $72,350 1- 6040 -0730 -15 Flow Meter Calibration 2,200 Flow Meter Calibration 2,200 1- 6040 -0730 -20 Electrical General 18,000 Electrical General Maintenance 18,000 1- 6040 -0730 -25 Electrical Motor Control Center 3,800 Motor Control Center 3,800 1- 6040 -0730 -30 Cabling& WAN 4,650 Conduit Replacement /Wiring Replacement/WAN Com 4,650 1- 6040 -0730 -40 Radio repairs & Servicing 9,500 Radio repairs & Servicing 9,500 1- 6040 -0730 -45 PLC Hardware 16,900 Powersupplies & components 500 M340 system /PLC's 11,000 Module replacements 3,100 Terminal Blocks /Other parts 1,500 Signal Conditioners - Converters 800 1- 6040 -0730 -55 Security & Gas detectors 2,800 Security& Gas detectors 2,800 1- 6040 -0730 -60 UPS & Back -up Power systems 5,500 UPS & Back-up 24VDC Power systems 5,500 1- 6040 -0730 -61 Cooling A/C Servicing 4,000 Cooling &A/C Service 4,000 1- 6040 -0730 -62 Instrumentation 5,000 Instrumentation 5,000 IT Budget Division Detail (FY 2014/15) SCADA Division, Continued OL tegory 1- 6040 - 0750 -00 Non - Capital Equipment $31,850 Wub"cl 11o./Sub Category 1- 6040 - 0750 -09 Networking Equipment Sub Acct 8,000 Detail Description Field Routers, Switches, Fiber Device Servers, Mod Detail 8,000 1- 6040 - 0750 -30 Tools & Equipment 1,550 Tools & Equipment 1,550 1- 6040- 0750 -35 Security 6,500 Security 6,500 1- 6040- 0750 -55 PLCs & Panels 5,000 PLCs & Panels 5,000 1- 6040 - 0750 -65 Electrical Upgrades 5,000 Electrical Upgrades 5,000 1- 6040 - 0750 -70 Redundant SCADA 5,800 Radio systems Communications & tower 5,800 1- 6040 - 0760 -00 Office Expense $300 1- 6040 - 0760 -30 Books & Publications 300 Manuals /Books /Magazines 300 1- 6040 - 0780 -00 Professional Services $31,500 1- 6040 - 0780 -20 Software Consulting 31,500 PLC program Conversions to Unity 10,500 SCADA system programing 11,000 Maintenance PLC -SCADA Modifications 10,000 1- 6040 -0810 -00 Professional Development $4,300 1- 6040 - 0810 -00 Professional Development 4,300 Wonderware training 2,400 PLCprogramingtraining 1,400 Awwa training 500 1- 6040 - 0830 -00 Travel & Conferences $1,400 1- 6040 - 0830 -00 Travel and Conferences 1,400 Awwa Conference 1,400 Section Total $219,875 G 4.� Supplies & Services Summary by Department Division Operations 0- Human Resource Administration Finance Engineering FY 2014/15 IT Department Administration Board of Directors GIS Information Systems VLM ANNUAL OPERATING BUDGET FISCAL' Operations 4 Department Organization Chart Operations Department Doeral -s Manager OperatitMS/ Water Maint. Office Warehouse nsslst. SucerinteMent 01¢rk Sr. Maintenance Sr. Maintanance Sr. Maintanance Sr. Maintanance Fatlmies Dist.Oceraror Disl.Ocerator Disl.Ocerator Disl.Oceretor Mainrenance Mainta —e Dist. Maintanatce Dist. Maintanance Dist. Opeator III Oprrator 111 Maintanance Dist. operator 111 Operator 111 MWltanance Olst. Maintenance III Maintenance Dist. Maintanance Dist. Oprrator II Operator It operator 11 Operator II Mainenance Dist. Maintanance DtSL Malnlanwe Dist. Opeator ll Operator It Maintanance Dist. oceator It operator It ®Yorba Linda Water District Organization Chart FY 2014/15 Malnlanante Worker 1 Maintanance Maintanance WorkerI Worker I Minn.— Maintanance Worker I Worker 1 Maintanance Worker I NJ Job Classification LoWd Management Part -Time Water Prodwian S— rintendent Sr. Plant Ooe ator Plant Operator II Plant Operator II Plant Operator 11 Bar ainin Unit. 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. Division Responsibilities OPERATIONS ADMINISTRATION The Operations Administration division 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 department's safety and risk management program are also emphasized in this section. P�a WATER OPERATIONS AND MAINTENANCE This division is separated into specific areas and duties that are assigned to three crews: Leak Crew, Valve Crew and Hydrant Crew. Personnel are cross trained and are assigned to crews based on workloads and demands. The crews do not perform only single duties, but rather deal with other related aspects of the crew's primary assignments. An example of the duties and an estimate of the number of work tasks for each crew, based on a 12 month period, are as follows: • Leak Crew - composed of five crew members. This crew conducts repairs on approximately 22 main lines and 50 service lines. They also conduct replacements of approximately 150 water lines, 120 Angle Meter Stops (AMS) valves; install 140 new meters; and replace 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 estimated that approximately 100 hydrants will need repair and approximately 50 will be replaced during the coming fiscal year. This crew's additional related duties include: • Servicing Air Vac Air Release (AVAR) valves — The crew services approximately 330 system AVARs annually. It is estimated that approximately eight will be repaired and fifteen will be replaced during the year. • Water Main Flushing — The crew flushes all dead end mains (155) twice per year. Additionally, the crew performs any formal flushing requests which average about fifty per year. • Servicing of system Pressure Control Valves (PCVs). Setting and servicing is done annually to approximately 150 valves. Additionally, PCV adjustments are made as requests arise from the Production Division. • Fire Flow Testing - This crew conducts the physical hydrant testing when requested by the District's Engineering Department. There is an average of twelve flow tests per year. • Field Customer Service Calls — The crew immediately responds to calls regarding water system complaints or problems. Each call is responded to with appropriate corrective action. Contact is made to inform the caller of the District's action in resolving the problem. The combined number of calls handled by this crew and the after -hours standby staff is in the area of 1,200 calls annually. A, �170 M 1, o: SEWER OPERATIONS AND MAINTENANCE This division 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. WATER PRODUCTION The primary objective of the Production Division 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 Division, 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 import water connections, 14 reservoirs, 2 reservoir mixing systems, 54 pressure regulating stations, 2 stationary backup power generators, 3 trailer mounted emergency pumps, and 1 trailer mounted emergency generator. Activities performed by the Production Section include, overseeing and performing the operation and maintenance of the system's assets, ensuring reservoirs 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. MECHANICAL SERVICES This division 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 division 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. • 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. Objective •. Evaluate How Each Department Might Make Further Use of Existing OE -1 Technology 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 WE -1 Expectations Performance Measures ] � Average Cl2 Residuals by Reservoir 2m 150 1m o.m 2006X 200%2010 ZOM2011 20111011 2012 X13 �nnw 1.1[l wogr �rai�so.:re�rw �a�mna.Hwx �1rcn. ca�r� -M... - Hift 8ry 10.arc� aa�flk MOUmaln �Camlro Ee &pm f.A\Nmwn Note: Average Cl2 Residuals by Reservoir is for import water reservoirs only. 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.00/0 3 2.5 2 1.5 1 0.5 0 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013 oBPP Goal oActual Ground Water uActual Import Water LulU-LUll 2011 -2012 2012 -2013 ■ Electric Motors ■ Booster Pumps Li Gear Drives ■ 02 Systems ■ N.G. Engines ANNUAL OPERSTING El� ,1� 17 Operations Personnel Summary Department FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 Proposed FY 2014/15 Administration 1.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator II 1.0 - - - - Maint. Distribution Operator III - - - - - Office Clerk - - - - 1.0 Operations Assistant 1.0 - - - - Operations Assistant/Storekeeper - 1.0 1.0 1.0 - Operations/Warehouse Assistant - - - - 1.0 Operations Manager 1.0 1.0 1.0 1.0 1.0 Department Totals 2.0 2.0 2.0 2.0 3.0 Water Operations & Maintenance Water Maintenance Superintendent 1.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator II 5.0 5.0 7.0 7.0 7.0 Maint. Distribution Operator III 3.0 3.0 3.0 3.0 3.0 Maintenance Worker 1 6.0 6.0 5.0 5.0 5.0 Sr. Maint. Distribution Operator 3.0 3.0 3.0 3.0 3.0 18.0 18.0 19.0 19.0 19.0 Sewer Operations & Maintenance Maint. Distribution Operator II 1.0 1.0 1.0 1.0 1.0 Maint. Distribution Operator III 1.0 1.0 1.0 1.0 1.0 Maintenance Worker 1 2.0 5.0 4.0 4.0 4.0 Sr. Maint. Distribution Operator 1.0 1.0 1.0 1.0 1.0 Mechanical Services Mechanic II 5.0 8.0 7.0 7.0 7.0 Water Production 1.0 Chief Plant Operator 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 - - - - - Maintenance Worker I - - - - - Plant Operator II 3.0 3.0 3.0 3.0 3.0 Water Production Superintendant - - - - 1.0 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 37.0 37.0 37.0 38.0 1� Operations Department Budget (FY 2014/15) Supplies & Services Communications $ FY 2013/14 $ FY 2014/15 Contractual Services $ Budget $ Budget Expenses (Operating) $ 700 $ 700 Salary Related Expenses $ 37,900 $ 37,050 Salaries $ 2,458,469 $ 2,574,013 Fringe Benefits $ 556,290 $ 535,515 Overtime $ 191,600 $ 160,500 Mandatory Benefits $ 385,973 $ 420,823 Total Salary Related Expenses $ 3,592,332 $ 3,690,851 Supplies & Services Communications $ 500 $ 500 Contractual Services $ 153,900 $ 176,500 Dues & Memberships $ 700 $ 700 Fees & Permits $ 37,900 $ 37,050 Materials $ 548,500 $ 613,900 District Activities & Events $ 1,500 $ 1,200 Maintenance $ 402,537 $ 362,600 Non - Capital Equipment $ 34,100 $ 47,100 Office Expense $ 9,500 $ 7,500 Professional Development $ 10,900 $ 12,750 Travel & Conferences $ 4,150 $ 5,600 Utilities $ 90,800 $ 90,800 Vehicle Expense $ 367,150 $ 358,400 Supplies & Services Sub -Total $ 1,662,137 $ 1,714,600 Operations Budget Division Detail (FY 2014/15) Administration Division Primary GIL Category Category Sub Acct No./Sub Category I Sub Acct I Detail Item Description I Detail Amt I To 1-5010-0600-00 $30,000 1 -5010- 0600 -50 Total 30,000 Uniforms (District -wide) 30,000 Contractual Services Uniforms 1- 5010 -0710 -00 $12,000 1 -5010- 0710 -65 12,000 PPE Equipment 12,000 Materials PPE Equipment 1- 5010- 0715 -00 $1,200 1 -5010- 0715 -50 1,200 Meeting Supplies 1,200 District Activitiesand Events Meeting Supplies 1- 5010 -0750 -00 $15,000 1 -5010- 0750 -50 15,000 Safety Equipment (Regulatory Requirements) 15,000 Non - Capital Equipment Safety Equipment 1- 5010 -0760 -00 $7,500 1 -5010- 0760 -00 2,000 Misc Supplies 2,000 Office Expense Office Expense 1 -5010- 0760 -10 400 Paper 400 Paper 1 -5010- 0760 -20 2,000 Printer Ink 2,000 Printer Ink 1 -5010- 0760 -30 100 Manuals /Books /Magazines 100 Books & Publications 1- 5010 -0760 -40 3,000 Breakroom Supplies 3,000 Breakroom Supplies 1 -5010- 0810 -00 $700 1 -5010- 0810 -00 500 Training 500 Professional Development Professional Development 1 -5010- 0810 -40 200 Certificate Reimbursement 200 Certificate Reimbursement 1 -5010- 0830 -00 $1,200 1 -5010- 0830 -00 1,200 AWWAFall Conference 1,200 Travel & Conferences Travel & Conferences Section Total $67,600 Operation Budget Division Detail (FY 2014/15) Water Operation & Maintenance Division Rill gur, Imila 1- 5020 - 0645 -00 $21,600 1 -5020- 0645 -25 2,100 NPDES Deminimus(RWQCB) 2,100 fees& Permits NPDES /RWQCB 1- 5020 -0645 -45 14,000 Landfill (Orange County &Dan Coop) 14,000 Landfill (Orange County & Dan Copp) 1- 5020 -0645 -55 5,500 Encroachment Permits 5,500 Encroachment Permits 1- 5020 -0710 -00 $477,000 1- 5020 -0710 -05 27,500 Road Material 27,500 Materials Road Material 1- 5020 -0710 -13 3,000 Air -Vac parts 3,000 Ai r -Va c Parts 1- 5020 -0710 -15 18,000 Cla Valve Parts 18,000 Cla -Valve Parts 1- 5020 -0710 -25 75,000 Hydrant Repair Parts 75,000 Hydrant Re pa i r Pa its 1- 5020 - 0710 -30 65,000 Valve Repair Parts 65,000 Valve Repair Parts 1- 5020 -0710 -36 10,000 CityofYorba Linda Valve Adjustments 10,000 City of YL Valve Adjustments 1- 5020 -0710 -40 140,000 Replacement Meters 140,000 Replacement Meters 1- 5020 -0710 -50 10,000 MXU's 10,000 Replacement MXU 1- 5020 -0710 -55 9,000 Meter Boxes /Lids/Vaults 9,000 Meter Boxes /Lids/Vaults 1- 5020 -0710 -60 6,500 Hardware Supplies 6,500 Hardware Supplies 1- 5020 -0710 -81 1,500 Welding5upplies 1,500 Welding Supplies 1- 5020 -0710-85 7,000 Cleaning/Painting Supplies 7,000 Clea ning/Pa inting Supplies 1- 5020 -0710 -90 85,000 Water Service Repair Parts 85,000 Water Service Repair Parts 1- 5020 -0710 -94 12,000 Miscellaneous Warehouse Parts 12,000 Miscellaneous Warehouse 1 -5020 -0710 -96 2,500 Ready Mix Concrete 2,500 Ready Mix Concrete 1- 5020 -0710 -98 5,000 Landscape Supplies 5,000 Landscape Supplies 1- 5020 - 0730 -00 $190,300 1- 5020 -0730 -00 5,000 Maintenance 5,000 Maintenance Maintenance 1 -5020 -0730 -66 150,000 Asphalt Paving 150,000 Asphalt Paving 1- 5020 -0730 -67 35,000 Concrete Repair 35,000 Concrete Repair 1- 5020 -0730 -72 300 Safety Equipment Repairs 300 Safety Equipment Repairs 1 -5020- 0750 -00 $10,000 1- 5020 -0750 -15 500 Equipment Rental 500 Non - Capital Equipment Equipment Rental 1- 5020 -0750 -30 8,500 Tool & Equipment 8,500 Tool & Equipment 1- 5020 -0750 -50 1,000 Traffic Cones, Barricades, and Signs 1,000 Safety Equipment 1 -5020 -0810 -00 $7,500 1 -5020 -0810 -00 6,100 Training 6,100 Professional Development Professional Development 1- 5020 -0810 -40 1,400 Certificate Reimbursement 1,400 Certificate Reimbursement 1- 5020 -0830 -00 $2,000 1- 5020 -0830 -00 2,000 AWWASpring Conferences (5 employees) 2,000 Travel & Conferences Travel & Conferences Section Total $708,400 = -LM ANNUAL OPERATING W Operation Budget Division Detail (FY 2014/15) Sewer Operation & Maintenance Division Primary GIL category Category Tota I Sub Acct No./Sub Category Sub Acct I Detail Item Description Detail 2- 5030 - 0580 -00 $500 2 -5030- 0580 -00 Total 500 FOG Materials 500 Communications Communications 2 -5030- 0640 -00 $300 2 -5030- 0640 -00 300 CWEAMemberships 300 Dues, Memberships, Dues, Memberships, Subscriptions Subscriptions 2 -5030- 0645 -00 $4,000 2 -5030- 0645 -20 1,000 1,000 Fees& Permits FOG Inspection & Fees (OCSD) 2 -5030- 0645 -30 2,000 WDR - SSO(SWRCB) 2,000 WDR -SSO (SWRCB) 2 -5030- 0645 -55 1,000 Encroachment Permits 1,000 Encroachment Permits 2 -5030- 0710 -00 $35,900 2 -5030- 0710 -60 900 Hardware Supplies 900 Materials Hardware Supplies 2 -5030- 0710 -86 10,000 CityofYorba Linda Manhole Adjustments 10,000 Placentia /Yorba Linda Island 2 -5030- 0710 -92 25,000 Sewer Main Repair Parts 25,000 Sewer Main Repair Parts 2 -5030- 0730 -00 $87,800 2 -5030- 0730 -59 60,000 Sewer Line Repairs 60,000 Maintenance Sewer Line Repairs 2 -5030- 0730 -65 7,000 Vector Control in Manholes 7,000 Vector Control In Manholes 2 -5030- 0730 -66 10,000 Asphalt Paving 10,000 Asphalt Paving 2 -5030- 0730 -67 500 Concrete Repair Soo Concrete Repair 2 -5030- 0730 -71 10,000 CCTVRepairs 10,000 CCTV Repairs 2 -5030- 0730 -72 300 Safety Equipment Repairs 300 Safety Equipment Repairs 2 -5030- 0750 -00 $9,500 2 -5030- 0750 -30 8,500 Tools & Equipment 8,500 Non - Capital Equipment Tools & Equipment 2 -5030- 0750 -50 1,000 Traffic Cones, Barricades, and Signs 1,000 Safety Equipment 2 -5030- 0810 -00 $2,200 2 -5030- 0810 -00 1,800 PACPTrainingCourse 1,800 Professional Development Professional Development 2 -5030- 0810 -40 400 Certificate Reimbursement 400 Certificate Reimbursement 2 -5030- 0830 -00 $1,200 2 -5030- 0830 -00 1,200 PACP Conference 1,200 Travel & Conferences Travel & Conferences 2 -5030- 0870 -00 $800 2 -5030- 0870 -10 800 800 Utilities Electric 2- 5030 - 0890 -00 $56,100 2 -5030- 0890 -46 25,000 OPS -Sewer Vehicle Maint 25,000 Vehicle Expenses Vehicle Expense: Sewer 2 -5030- 0890 -47 1,000 OPS - Sewer - Equipment Maintenance 1,000 Vehicle Expense: Sewer 2 -5030- 0890 -48 9,100 OPS- Sewer -Gas 9,100 Vehicle Expense: Sewer Gas 2 -5030- 0890 -49 21,000 OPS - Sewer - Diesel 21,000 Vehicle Expense: Sewer Diesel Section Total $198,300 = -Lo ANNUAL OPERATING W Operation Budget Division Detail (FY 2014/15) Water Production Division Primary GL Category Category Total I Sub Acct No./Sub Category Sub Acct I Detail Item Description Detail 1 -5040- 0600 -00 $2,500 1 -5040- 0600 -25 Total 2,500 Distribution System Disinfection 2,500 Contractual Services Distribution System Disinfection 1 -5040- 0640 -00 $400 1 -5040- 0640 -00 400 AWWAMemberships 350 Dues, Memberships, Dues, Memberships, OCWAMemberships 50 Subscriptions Subscriptions 1 -5040- 0710 -00 $76,000 1 -5040- 0710 -17 4,000 Pump Parts 4,000 Materials Pump Repair Parts 1 -5040- 0710 -35 14,000 CL2 Parts 14,000 CL2 Parts 1 -5040- 0710 -60 2,500 Hardware Supplies 2,500 Hardware Supplies 1 -5040- 0710 -75 35,000 Salt 35,000 Salt 1 -5040- 0710 -84 20,000 Valves, Gauges, AV, etc. 20,000 Production Repair Parts 1 -5040- 0710 -85 500 Cleaning /Painting Supplies 500 Cleaning /PaintingSupplies 1 -5040- 0730 -00 $32,500 1 -5040- 0730 -05 4,500 CL2 System Service 4,500 Maintenance CL2 System Service 1 -5040- 0730 -10 5,000 Electrical Motor Repairs /Services 5,000 Electrical Motor Repairs 1 -5040- 0730 -20 10,000 Electric General Maintenance 10,000 Electrical General 1 -5040- 0730 -24 2,000 Reservoir Repairs 2,000 Reservoir Repairs 1 -5040- 0730 -25 6,000 Reservoir Inspections &Cleaning 6,000 Reservoir Inspections & Cleaning 1 -5040- 0730 -75 5,000 Pump Station Repairs 5,000 Pump Station Repairs 1 -5040- 0750 -00 $3,500 1 -5040- 0750 -30 1,000 Tools & Equipment 1,000 Non - Capital Equipment Tools & Equipment 1 -5040- 0750 -90 2,500 Hoses/ Fittings /Cabling for Pumps /Generators 2,500 Emergency Equipment Supplies 1- 5040 - 0810 -00 $2,100 1 -5040- 0810 -00 1,500 Training 1,500 Professional Development Professional Development 1 -5040- 081040 600 Certificate Reimbursment 600 Certificate Reimbursement 1 -5040- 0830 -00 $1,200 1 -5040- 0830 -00 1,200 AWWA Spring Conference (2 Employees) 1,200 Travel & Conferences Travel & Conferences Section Total $118,200 Operation Budget Division Detail (FY 2014/15) Mechanical Services Division Primary GL Category Category Total Sub AcctNo./Sub Category Sub Acct I Detail Item Description Detail 1 -5050- 0645 -00 $9,950 1 -5050- 0645 -05 Total 8,000 AQMD Permits 8,000 Fees& Permits AQMD Permits 1 -5050- 0645 -15 350 E.P.A. Fees 350 E.P.A.. Fees 1 -5050- 0645 -35 100 HAZ Mat Fees (OCFA) 100 Haz MatFees(OCFA) 1 -5050- 0645 -60 1,500 C.A.R.8 Fee 1,500 CARB Fees 1 -5050- 0710 -00 $4,000 1 -5050- 0710 -60 2,000 Hardware Supplies 2,000 Materials Hardware Supplies 1 -5050- 0710 -80 1,500 Mech. Shop Supplies 1,500 Mech. Shop Supplies 1 -5050- 0710 -81 500 Welding Supplies 500 Welding Supplies 1 -5050- 0750 -00 $8,000 1 -5050- 0750 -40 8,000 Misc Mech Shop Equipment /Tools 8,000 Non - Capital Equipment Mech Shop Equipment 1 -5050- 0810 -00 $250 1 -5050- 0810 -40 250 Certificate Reimbursment 250 Professional Development Certificate Reimbursement 1 Operation Budget Division Detail (FY 2014/15) Mechanical Services Division, Continued Primary GL Category Category Total Sub AcctNo./Sub Category Sub Acct 7- Total Detail Item Description Detail 1 -5050- 0890 -00 $302,300 1 -5050- 0890 -20 13,200 Finance -Gas 13,200 Vehicle Expenses Finance -Gas 1 -5050- 0890 -21 4,000 Finance - VehicleMaint 4,000 Finance - Vehicle Maint 1 -5050- 0890 -30 5,500 Engineering -Gas 5,500 Engineering -Gas 1 -5050- 0890 -31 2,000 Engineering - VehicleMaint 2,000 Engineering - Vehicle Maint 1 -5050- 0890 -42 50,000 OPSWaterVehicle Maintenance 50,000 OPS - Water - Vehicle Maint 1 -5050- 0890 -43 5,000 OPS -Water Equipment Maintenance 5,000 OPS - Water - Equipement 1 -5050- 0890 -44 63,000 OPS- Water -Gas 63,000 OPS- Water -Gas 1 -5050- 0890 -45 19,000 OPS- Water - Diesel 19,000 OPS- Water - Diesel 1 -5050- 0890 -50 2,000 OPS- ProductionVehicleMaint 2,000 OPS -Production Vehicle Maint 1 -5050- 0890 -51 500 OPS- Production EquipmentMaint 500 OPS- Production Equipment 1 -5050- 0890 -52 12,000 OPS- Production -Gas 12,000 OPS- Production -Gas 1 -5050- 0890 -53 2,000 OPSMechSvcs - VehicleMaint 2,000 OPS -Mech Svcs -Vehicle Maint 1 -5050- 0890 -54 4,200 OPS -Mech Svcs -Gas 4,200 OPS -Mech Svcs -Gas 1 -5050- 0890 -55 1,000 OPS- Facilities - VehicleMaint 1,000 OPS - Facilities - Vehicle Maint 1 -5050- 0890 -56 1,400 OPS- Facilities -Gas 1,400 OPS- Facilities -Gas 1 -5050- 0890 -57 1,000 OPS -Tool Repair 1,000 OPS -Too[ Re pair 1 -5050- 0890 -70 1,000 IT- Vehicle Maintenance 1,000 IT- Vehicle Maint 1 -5050- 0890 -71 3,000 IT-Gas 3,000 IT -Gas 1 -5050- 0890 -80 100,000 Stationary Engine Maint 100,000 Stationary Engine Maint 1 -5050- 0890 -81 11,000 Stationary Engine Emissions Testing 11,000 Stationary Engine Emissions 1 -5050- 0890 -90 1,500 Haz Mat Disposal 1,500 Hazardous Materials Disposal j Section Total $324,500 Operation Budget Division Detail (FY 2014/15) Facilities Maintenance Division Primary GL Category Category Total Sub Acct No./Sub Category Sub Acct Detail Item Description Detail 1 -5060- 0600 -00 $144,000 1 -5060- 0600 -05 25,000 AC & Heating 25,000 Contractual Services AC & Heating 1 -5060- 0600 -29 5,500 Disposal Service 5,500 Disposal Service 1 -5060- 0600 -35 65,000 Janitorial Service 65,000 Janitorial Service 1 -5060- 0600 -40 45,000 Landscape Service 45,000 Landscape Service 1 -5060- 0600 -45 3500 Pest Control Service 3,500 Pest Control Service 1 -5060- 0645 -00 $1,500 1 -5060- 0645 -35 1,500 Haz Mat Fees (OCFA), Permits 1,500 Fees & Permits Haz Mat Fees (OCFA) 1 -5060- 0710 -00 $9,000 1 -5060- 0710 -00 1,000 1,000 Materials Materials 1 -5060- 0710 -10 2,500 Building Repair Parts 2,500 Building Repair Parts 1 -5060- 0710 -60 3,000 Hardware Supplies 3,000 Hardware Supplies 1 -5060- 0710 -85 2,000 2,000 Cleaning /Painting Supplies 1 -5060- 0710 -98 500 Landscape Supplies 500 Landscape Supplies 1 -5060- 0730 -00 $52,000 1 -5060- 0730 -00 25,000 Misc Facility Maint (Doors, fences, etc.) 25,000 Maintenance Maintenance 1 -5060- 0730 -20 5,000 Electrical Repair Work 5,000 Electrical General 1 -5060- 0730 -35 2,000 Fire ExtinguisherMaint /Calibration 2,000 Fire Extinguisher 1 -5060- 0730 -50 10,000 Painting 10,000 Painting& Fencing 1 -5060- 0730 -66 5,000 Asphalt Paving 5,000 Asphalt Paving 1 -5060- 0730 -67 5,000 Concrete Repair 5,000 Concrete Repair 1- 5060 - 0750 -00 $1,100 1 -5060- 0750 -00 100 General Tools and Parts 100 Non - Capital Equipment Non - Capital Equipment 1 -5060- 0750 -30 1,000 Tools & Equipment 1,000 Tools & Equipment 1 -5060- 0870 -00 $90,000 1 -5060- 0870 -10 90,000 Electric 90,000 Utilities I Electric Section Total $297,600 4� Supplies & Services Summary by Department FY 2014/15 Operations Department Board of Directors Information Technology Human Resources Finance Administration Engineering 185 Water Production Sewer Ops Water Ops Mechanical Svcs Facilities Maint. Administration VLM ANNUAL OPERATING BUDGET FISCAL' Appendix VLM ANNUAL OPERATING BUDGET FISCAL' 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 VLM ANNUAL OPERATING BUDGET FISCAL' DO- Dissolved Oxygen DWR- Department of Water Resources (State) 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 County Water District MCL- Maximum Contaminant Level MCWD- Mesa Consolidated Water District Met- Metropolitan Water District of Southern California (aka MWD) MG- Million Gallons mg /I- 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 VLM ANNUAL OPERATING BUDGET FISCAL' NWS- National Weather Service 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 /1- 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 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. Capital Replacement: Expenses related to major replacements of existing facilities or systems. Certificates of Participation (COP): A long -term debt instrument authorized for construction or acquisition of facilities and equipment. Debt: An obligation resulting from the borrowing of money or from the purchase of goods and services. These include bonds and accounts payables. Debt Service: The District's obligation to pay the principal and interest of bonds and other debt instruments according to a predetermined payment schedule. Deferred Revenue: Revenue that is not recognized in the period in which received because they are not "available" until a subsequent period. Depreciation: An expense recorded to allocate a tangible asset's cost over its useful life. Designated: A term that describes assets or equity set aside by action of the Board; as distinguished from assets or equity set aside in conformity with requirements of donors, grantors, or creditors. Enterprise Fund: Fund established to account for the financing of self- supporting enterprises, such as a utility fund, which render services primarily to the public. Expenditures /Expenses: A charge incurred, whether paid or unpaid, for operation, maintenance, interest, and other charges presumed to benefit the current fiscal period. Fiscal Year: A 12 -month period of time to which the annual budget applies and at the end of which a government determines its financial position and the results of its operations. The District has specified July 1 to June 30 as its fiscal year. Fund Balance /Fund Equity: See "Net Assets" Geographic Information System (GIS): A system combining computer hardware, software, and geographic data for collecting, storing, analyzing and displaying geographically referenced information. Generally Accepted Accounting Principles (GAAP): Accounting and financial reporting standards, conventions, and practices that have authoritative support from standards - setting bodies such as the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board.(FASB). 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. 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. Refundinq 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. = -LM ANNUAL OPERATING W 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. 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. 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 = -LM ANNUAL OPERATING W 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. = —Lo ANNUAL OPERATING W The District's budget process was developed with a series of goals and objectives in mind. These goals and objectives are communicated throughout the organization through several meetings. During the process, the Board of Directors provides priorities and guidelines to the General Manager. The General Manager then discusses Board priorities and other future issues and concerns with Department Heads during staff meetings. Once goals and objectives for the upcoming year are identified, the General Manager and the District staff start developing the District's budget. Where practical, the District integrates performance measurement, service level, and productivity indicators in the District's adopted budget document. The District will continue to emphasize the importance of meeting each department's goals and objectives in order to accomplish its long -term goals and objectives. An increase in the Operating and Capital budget may result in water rate increases. In order to minimize the impact on the District's rates, revenue requirements are scrutinized to achieve operating efficiencies and maintain or increase customer service at the same time. As part of the cost containment efforts, District staff re- visits operating priorities and reviews internal procedures to included utilizing outside services when they can offer greater competitive advantages to doing it internally, or investing in technology to increase productivity and to reduce the need for additional staff. ANNUAL OPERATING W Revenues and Expenditures Policies This policy is used as an aid to provide for the consistent provision of essential public services since revenues and expenditures are the key drivers of the District's operations. The goal of this policy is to help ensure the financial stability regardless of the economic situation and to provide information to the Board that revenue and expenditure practices are consistent with the District's mission and goals. Revenues Policy Budgeted revenues are estimated conservatively using an objective and analytical approach using certain techniques such as historical trends and current information to maintain consistency, reliability, and reasonableness. User Charges User charges are the most important component of the District's revenue portfolio. The District uses user charges to fund the provision of services provided to its customers. The District utilizes a cost recovery component to determine how much costs need be recovered from various customers. The cost of providing various services is used as the basis for setting rates and fees to the various types of customers served. The following are guidelines for the user charge setting process: • User charges are established utilizing a generally accepted cost recovery methodology that is consistent and legally defendable 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 setting objectives. • Rates shall be set at a level so that the District will collect reliable revenues through a combination of system access charges and users' commodity rates to pay for the District's revenue requirement. • Rates and charges will be reviewed and updated regularly based on factors such as the impact of inflation, other cost increases, the adequacy of the coverage of costs and requirements of the rate covenant. Expenditures Policy The District's expenditures reflect the Board of Directors' and staff commitment to serve present and future customers with reliable public services. The Board and Staff believe that prudent expenditure planning and accountability will ensure fiscal stability. I--7rL ANNUAL OPERATING 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 reduce or avoid increasing personnel costs, when practicable. • Control personnel costs as a proportion of total budget, to more productively and creatively use available resources. 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. 1.0 Operating Reserve A. Definition and Purpose — Established to cover temporary cash flow deficiencies that occur as a result of timing differences between the receipt of operating revenue and expenditure requirements and unexpected expenditures occurring as a result of doing business. B. Target Level — The Government Finance Officers Association (GFOA) recommends that funding should be no less than one to two months (or 8% - 17 %) of the District's annual operating budget. The District's current target will be a minimum of 8% and a maximum of 17% of the annual operating budget for both the water and sewer funds. C. Events or Conditions Prompting the Use of the Operating Reserve — This reserve may be utilized as needed to pay outstanding operating expenditures prior to the receipt of anticipated operating revenues. 1.1 Emergency Reserve A. Definition and Purpose — Established to provide protection recovery to the District and its customers for losses arising from an unplanned event or circumstance. The reserve level combined with YLWD's existing insurance policies should adequately protect YLWD and its customers in the event of a loss. B. Target Level — Established at a minimum level equal to $1,000,000 for the water fund and shall accumulate interest and annual contributions as determined by the District's annual operation to a maximum level of $4,000,000. The target for sewer will be a minimum of $250,000 and a maximum of $1,000,000. C. Events or Conditions Prompting the Use of the Emergency Reserve — This reserve shall be utilized to cover unexpected losses experienced by the District as a result of a disaster or other unexpected loss. Any reimbursement received by the District from insurance companies as a result of a submitted claim shall be deposited back into the reserve as replenishment for the loss. 1.2 Capital Replacement Reserve A. Definition and Purpose — Established to provide capital repair and replacement funding as the District's infrastructure deteriorates over its expected useful life. B. Target Level — The Board - approved 2010 Asset Management Plan recommended that the annual contribution to this reserve be at a minimum level of $1,820,000 for the water fund and $345,000 for the sewer fund, less money set aside for the Maintenance Reserve. Funding with available funds based on the District's operations shall be allocated quarterly. C. Events or Conditions Prompting the Use of the Capital Replacement Reserve — Through the annual budget process, staff shall recommend anticipated asset replacement projects. The Board of Directors shall take action to approve recommended project appropriations from the capital replacement reserve. Should unplanned replacement be necessary during any fiscal year, the Board of Directors may take action to amend the budget and appropriate needed funds as required. 1.3 Maintenance Reserve A. Definition and Purpose — Established to provide funding for non - scheduled capital asset repair and replacement. B. Target Level — $200,000 subject to an annual review. C. Events or Conditions Prompting the Use of the Maintenance Replacement Reserve — Unplanned failure of assets including but not limited to pumps, motors and major facility repairs. 1.4 Debt Service Reserve A. Definition and Purpose — Established to provide funding for semi - annually scheduled debt service payments. B. Target Level — The District's highest annual debt service payment — currently $2,723,509. C. Events or Conditions Prompting the Use of the Debt Service Reserve — Semi- annual debt service payments will be made out of this fund, with funding on the water rate replenishing the fund annually. 1.5 Employee Liabilities Reserve A. Definition and Purpose — The purpose is to cover employees' accrued vacation and other compensatory time and to ensure the complete funding associated with the liability incurred for employees whom have met the requirements necessary for district paid health benefits at retirement. B. Target Level — The annual contribution will be $100,000 ($93,000 for water and $7,000 for sewer) to be evaluated and /or adjusted annually thereafter based on an analysis of current employees' vacation and sick time accrued and actuarial determinations of future retiree costs. As of November 2, 2011, an actuary determined that the District's Other Post Employment Benefit (OPEB) liability was $1,433,197. When combined with a liability on the District's books for vacation, compensatory and sick time of $1,063,572 at June 30, 2012, the target is projected to be approximately $2,500,000 for the combined water and sewer enterprises. C. Events or Conditions Prompting the Use of the Employee Liabilities Reserve — This reserve may be used in the event that operating funds are not adequate to meet vacation, compensatory and sick time paid out or retiree medical cost obligations within the current year. 2. Contractually Restricted Reserves: These are funds held to satisfy limitations set by external requirements established by creditors, grant agencies or law. Examples include stipulated bond covenants and reserves held with a fiscal agent. 2.0 US Bank 2008 COP Reserve A. Definition and Purpose — Established to cover reserve requirements held with a designated fiscal agent (US Bank) for the 2008 Certificates of Participation. B. Target Level — Funding shall be held in an amount equal to $2,147,096. C. Events or Conditions Prompting the Use of the Contractually Restricted Reserve — This reserve may be utilized as needed by the fiscal agent to pay any outstanding debt service payments not covered by the District within the specified billing and due dates. C0M&YK91:j=F 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. N*31N 10 9=1 I7_ 1► oil 11*1[rl► /_1%I =111N=+y_=1:ITA26" a 1. Board Desianated 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. N L z Nt. , .ANNUAL OPERATING �. W Investment Policy SECTION 1: GENERAL POLICY 1.1 It is the policy of the Yorba Linda Water District ( "District ") to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds. 1.2 The purpose of this policy is to provide guidelines for the prudent investment of funds of the District and to outline the policies for maximizing the efficiency of the District's cash management. The District's goal is to enhance the economic status of the District consistent with the prudent protection of the District's investments. This investment policy has been prepared in conformance with all pertinent existing laws of the State of California. SECTION 2: SCOPE 2.1 This Investment Policy applies to all funds and investment activities of the District, except for the proceeds from capital project financing instruments, which are invested in accordance with provisions of their specific documents. These funds are accounted for as Enterprise Funds and are identified in the District's Comprehensive Annual Financial Report. SECTION 3: DELEGATION OF AUTHORITY 3.1 The authority of the Board of Directors to invest funds is derived from Section 53601 of the California Government Code ( "CGC "). Section 53607 of the CGC grants the Board of Directors the authority to delegate that authority, for a one - year period, to the District's Treasurer. Therefore, management responsibility for the investment program is hereby delegated to the District's Treasurer, who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the Treasurer. The Treasurer shall establish procedures for the management of investment activities, including the activities of staff consistent with this Policy. LM = z - .ANNUAL OPERATING �. 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 YL 1 �. z ANNUAL OPERATING W funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." 5.2 The Treasurer and delegated investment officers, acting in accordance with District procedures and the Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 5.3 Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. SECTION 6.0: ETHICS AND CONFLICTS OF INTEREST 6.1 Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District's General Manager any material financial interests in financial institutions that conduct business with the District's boundaries, and they shall further disclose any large personal financial /investment positions that could be related to the performance of the District. SECTION 7: AUTHORIZED BROKER /DEALERS 7.1 The Treasurer will maintain a list of authorized broker /dealers and financial institutions that are approved for investment purposes. Broker /dealers will be selected for credit worthiness and must be authorized to provide investment services in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15(C)3 -1 (uniform net capital rule). No public deposit will be made by the broker /dealer except in a qualified public depository as established by the established state laws. Before a financial institution or broker /dealer is used, they are subject to investigation and approval by the Treasurer or his /her designated representative, and must submit the following: 7.1.1 Certification of having read and understood this investment policy resolution and agreeing to comply with the District's investment policy; LLo ANNUAL OPERATING' 7.1.2 Proof of Federal Investment Regulatory Authority certification; 7.1.3 Proof of State of California registration; 7.1.4 Audited financial statements for the institution's three (3) most recent fiscal years; 7.1.5 References of other public- sector clients that similar services are provided to. 7.2 If a third party investment advisor is authorized to conduct investment transactions on the District's behalf, the investment advisor may use their own list of approved independent broker /dealers and financial institutions. The investment advisor's approved list must be made available to the District upon request. SECTION 8: AUTHORIZED INVESTMENTS 8.1 The District is provided a broad spectrum of eligible investments under the CGC Sections 53601 et seq. Authorized investments shall also include, in accordance with CGC section 16429.1 et seq., investments into the Local Agency Investment Fund (LAIF) and the Orange County Treasurer's Commingled Investment Pool in accordance with CGC section 53684. Within the investments permitted by the CGC, the District seeks to further restrict eligible investment to the investments listed in Section 8.3 below. Percentage holding limits listed in this section apply at the time the security is purchased. Ratings, where shown, specify the minimum credit rating category required at purchased without regard to +/- or 1,2,3 modifiers, if any. 8.2 The purchase of any investment permitted by the CGC, but not listed as an authorized investment in this Policy is prohibited without the prior approval of the Board of Directors. 8.3 Within the context of these limitations, the following investments are authorized: = —Lo ANNUAL OPERATING W 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 Fund SA No % or maturity limit No % or maturity limit Joint Powers Authority Funds (CaITRUST & 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 4 Please see Section 11 for additional restrictions SECTION 9: REVIEW OF INVESTMENT PORTFOLIO 9.1 The securities held by the District must be in compliance with Section 8 Authorized Investments at the time of purchase. The Treasurer shall at least quarterly review the portfolio to verify that all securities are in compliance with Section 8 Authorized Investments. In the event a security held by the District is subject to a credit rating change that brings it below the minimum credit ratings specified in Appendix A Authorized Investments, the Treasurer should notify the Finance - Accounting Committee - and through the Committee's minutes, the Board - of the change. The course of action to be followed will then be decided on a case -by -case basis, considering such factors as the reason for the change, prognosis for recovery or further rate drops, and the market price of the security. SECTION 10: INVESTMENT POOLS 10.1 A thorough investigation of any investment pool or mutual fund is required prior to investing, and on a continual basis. The investigation will, at a minimum, obtain the following information: 10.1.1 A description of eligible investment securities, and a written statement of investment policy and objectives; 10.1.2 A description of interest calculations and how it is distributed, and how gains and losses are treated; 10.1.3 A description of how the securities are safeguarded (included the settlement processes), and how often the securities are priced and the program audited; 10.1.4 A description of who may invest in the program, how often and what size deposit and withdrawal are allowed; 10.1.5 A schedule for receiving statements and portfolio listings; 10.1.6 Are reserves, retained earnings, etc. utilized by the pool /fund; 10.1.7 A fee schedule and when and how it is assessed; 10.1.8 Is the pool /fund eligible for bond proceeds and /or will it accept such proceeds. = L ANNUAL OPERATING W SECTION 11: COLLATERALIZATION 11.1 Bank Deposits: Under provisions of the CGC, California banks and savings and loan associations are required to secure the District's deposits by pledging eligible securities with a value of 110% of principal and accrued interest. State law also allows financial institutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150% of the District's total deposits. 11.2 Waiver of Security: The Treasurer, at his /her discretion and in accordance with CGC section 53653, may waive security for the portion of any deposits as is insured pursuant to federal law. SECTION 12: SAFEKEEPING AND CUSTODY 12.1 All security transactions entered into by the District shall be conducted on a delivery- versus - payment basis. Securities will be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts. The only exception to the foregoing shall be depository accounts and securities purchases made with (i) local government investment pools, and (ii) money market mutual funds, since those purchased securities are not deliverable. SECTION 13: DIVERSIFICATION AND MAXIMUM MATURITIES 13.1 The District will diversify its investments by security type and institution. With the exception of U.S. Treasuries, U.S. Agency Securities, FDIC Insured Certificates of Deposit and authorized pools, no more than 30% of the District's total investment portfolio will be invested in a single security type or with a single financial institution. 13.2 To the extent possible, the District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and approved in advance by the Board of Directors, the District will not directly invest in securities maturing more than 5 years from the date of purchase. SECTION 14: INTERNAL CONTROLS 14.1 The external auditors will annually review the investments and general activities associated with the investment program. This review will provide internal control by assuring compliance with the Investment Policy and District policies and procedures. = -LM ANNUAL OPERATING INMW W SECTION 15: PERFORMANCE STANDARDS 15.1 The investment portfolio will be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. 15.2 The District's investment strategy is passive. The performance of the District's investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District's Safety, Liquidity and Return on Investments objectives. This review will be conducted annually with the Finance - Accounting Committee. SECTION 16: REPORTING 16.1 Subject to CGC sections 53607 and 53646(b), the Treasurer will provide monthly investment reports to the District's Finance - Accounting Committee (and through the Committee's minutes, to the Board of Directors) and quarterly reports to the Board of Directors which provide a clear picture of the status of the current investment portfolio. The reports shall comply with the reporting requirements of CGC sections 53607 and 53646(b), respectively. SECTION 17: INVESTMENT POLICY ADOPTION 17.1 The District's Investment Policy will be adopted by resolution of the Board of Directors. The policy will be reviewed on an annual basis and modification, if any, must be approved by the Board of Directors. Meeting Date Subject: ATTACHMENTS: Name: 052014 FA - Minutes.doc ITEM NO. 10.2 AGENDA REPORT June 12, 2014 Finance - Accounting Committee (Hawkins / Beverage) Minutes of the meeting held May 20, 2014 at 4:00 p.m. Next meeting is scheduled to be held June 23, 2014 at 4:00 P.M. Description: FA Mtg Minutes 05/20/14 Type: Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Tuesday, May 20, 2014, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 20, 2014 meeting of the Yorba Linda Water District's Finance - Accounting Committee was called to order by Director Hawkins at 4:00 p.m. The meeting was held in the Admin Conference Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. ROLL CALL COMMITTEE 3. Director Phil Hawkins, Chair Director Michael J. Beverage PUBLIC COMMENTS None. 4. ACTION CALENDAR STAFF Steve Conklin, Acting General Manager Delia Lugo, Finance Manager 4.1. Appropriations Limit for FY 2014/15 Mrs. Lugo presented the 2014/15 Appropriations Limit Calculation for the Committee's review. Mrs. Lugo explained that the annual calculation of the Appropriations Limit is a State requirement designed to assure that government agencies do not assess or collect taxes beyond the calculated limit. For FY 2014/15 the calculated Appropriations Limit for Yorba Linda Water District is $6,025,347, which is significantly higher than the Property budget amount of $1,283,642. The Committee supports staff's recommendation of adopting the new limit for FY 2014/15 as reflected in Resolution No. 14 -XX. 4.2. FY 2014/15 Water Rate Increase Mrs. Lugo discussed the issue of the rate increase for FY 2014/15. In June 2012, the Board held a meeting to discuss and consider a three -year rate increase. The result was to move forward with the three -year rate increase, but due to the possibility that the financial position of the District might improve the Board elected to only adopt the first year of the three annual rate increases. In June 2013, a financial evaluation was performed during the FY 2013/14 budget process and the Board elected to adopt the second year of the three year annual increases, being a 2.5% rate increase. In preparing the budget for FY 2014/15 and performing a financial evaluation of the District's current position and forecasting out five years, it has become evident that the third of a three -year rate increase is necessary for the operational obligations of the District to be 1 met. Following a discussion session, the Committee supported staff's recommendation that the Board approve the third -year rate increase of 2.5% for FY 2014/15, adopt Resolution No. 14 -XX, and rescind Resolution No. 13 -13. 4.3. Financial Reserves Policy for FY 2014/15 Mrs. Lugo presented the 2014/15 Financial Reserves Policy for the Committee's review. Mrs. Lugo disclosed that there are no major changes to the policy presented, but that minor changes pertaining to account balances presented in Item 1.5 Employee Liabilities Reserve Section B have been made. The Committee supports staff's recommendation that the Board of Director's approve Resolution No. 14 -XX adopting the Financial Reserves Policy for FY 2014/15 and rescind Resolution No. 13- 07. 4.4. Unaudited Financial Statements for the Period Ending March 31, 2014 (To be presented at the meeting.) Mrs. Lugo presented the Unaudited Financial Statements for the Period Ending March 31, 2014 as handouts for the Committee to review. With the Committee approval these statements would be included in the Consent Calendar for the June 12, 2014 Board Meeting. The Debt Service Ratio for the period ending March 31, 2014 was calculated to be 2.55 %, which is well above the required coverage ratio of 1.10 %. After some discussion on key items reported in the financial statements, the Committee supported staff recommendation. 5. DISCUSSION ITEMS 5.1. Investment Policy Annual Review Mrs. Lugo presented the District's current Investment Policy that was adopted under Resolution No. 13 -06. Upon review of this policy by the Finance Department, which is an annual requirement under the California Government Code, it was determined that no changes were needed at this time. The Committee supported staff recommendation and the Annual Review of the Investment Policy will be added to the Action Calendar for the June 12, 2014 Board Meeting. 5.2. Investment Report for the Period Ending April 30, 2014 Mrs. Lugo presented the Investment Report for the Period Ending April 30, 2014. She noted that the average yield for this reporting month is 0.69 %. Mrs. Lugo went on to discuss that the increase in the Water Operating Reserve balance was due to the receipt of tax apportionments from the County of Orange. There were no further items to discuss. 5.3. Budget to Actual Results for April 2014 Mrs. Lugo reviewed the April 2014 Budget to Actual Results report with the Committee. Mrs. Lugo noted that the expenditures to date are trending as previously reported 2 5.4. Finance Department Transactions (Verbal Report) Mrs. Lugo had contacted the CSDA Finance Corporation in regards to some short -term financing options. She received quotes back on 6 different scenarios and presented them to the Committee. The Committee supported the idea of holding off on making any firm decisions in regards to Short -Term loans to fund future capital projects until the analysis of future financial position of the District if completed. 5.5. Future Agenda Items and Staff Tasks At the suggestion of Mr. Conklin and Mrs. Lugo the Committee supports the idea of the Finance staff working with Raftellis Financial Consultant, Inc. to become fully trained on the functionality and proper uses of the Financial Model program purchased from Raftellis two years ago. Once trained, staff will prepare an analysis projecting the financial position of the District over the next five years. This analysis will also help determine if a future rate increase will be required to meet the future financial obligations of the District. Mrs. Lugo is to contact Sanjay Gaur, Senior Manager, of Raftellis to request that he prepare a scope of work to get this project started. The goal is to have this projected completed and ready to present to the Committee in July 2014. 6. ADJOURNMENT 6.1. The meeting was adjourned at 5:15 p.m. The next Finance - Accounting Committee meeting is scheduled to be held Monday, June 23, 2014 at 4:00 p.m. K Meeting Date Subject: ATTACHMENTS: ITEM NO. 10.5 AGENDA REPORT June 12, 2014 Public Affairs - Communications - Technology Committee (Collett / Kiley) • Minutes of the meeting held May 14, 2014 at 4:00 p.m. • Minutes of the meeting held June 11, 2014 at 4:00 p.m. (To be provided at the next regular Board meeting.) • Next meeting is scheduled to be held July 7, 2014 at 4:00 p.m. Name: 051414 PACT - Minutes.docx Description: PACT Mtg Minutes 05/14/14 Type: Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC AFFAIRS - COMMUNICATIONS - TECHNOLOGY COMMITTEE MEETING Wednesday, May 14, 2014, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. 3 4. 5. The May 14, 2014 meeting of the Yorba Linda Water District's Public Affairs - Communications- Technology Committee was called to order by Director Collett at 4:00 p.m. The meeting was held in the Admin Conference Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. ROI I CAI I COMMITTEE MEMBERS PRESENT Director Ric Collett, Chair Director Robert R. Kiley PUBLIC COMMENTS None. ACTION CALENDAR STAFF PRESENT Steve Conklin, Acting General Manager Art Vega, Acting IT Manager Damon Micalizzi, Public Information Officer 4.1. Draft 2014 Water Quality Report The Committee reviewed the report and recommended that the draft report be taken to the full Board for approval with minor edits. DISCUSSION ITEMS 5.1. Revised Draft Public Affairs Division Budget The Committee reviewed a revision to the Draft Public Affairs Division Budget with a proposed increase of $3,144 to the Supplies and Services Budget. This increase is for Water Conservation Programs, MWDOC Choice Program, which will increase from $26,000 to $29,144. This latest change increases the Public Information Division budget from $207,000 to $210,144, an increase of 1.5 %. The $3,144 increase includes a $3,000 contribution from each agency that wishes to continue participation in the Poseidon CHOICE Program and a close -out of the AMP Sale Agreement, which YLWD's share would be $144. 1 5.2. Microsoft Software Licensing Status (Verbal Report) Mr. Vega briefly went over Microsoft's "Select Plus Licensing." He explained the different types of licenses, the District's current licenses and the anticipated cost to renew these licenses particularly the District's "Software Assurance" licenses. The Committee had no further questions on this subject. 5.3. Phase 3 of Storage Solution and Recovery Plan Outline: Archiving Status (Verbal Report) Mr. Vega kept the Committee apprised of the current status of this project. He explained that the hardware had arrived and has been rack - mounted in the data center. He further explained that in the coming weeks IT staff plans to install, test and configure the software portion of this project. The Committee had no further questions on this subject. 5.4. History Video Update (Verbal Report) Mr. Micalizzi updated the Committee on the initial outreach to interviewees for the History video, noting that some who were targeted for interviews are no longer in a position to participate. 5.5. 2014 YLWD Bottled Water (Verbal Report) Mr. Micalizzi presented to the Committee the new edition of YLWD bottled water. The District is now distributing 12 oz bottles instead of 16.9 oz bottles that were previously purchased. Due in part to this change, the District was able to purchase an additional 35,000 bottles of water for distribution. 5.6. Public Relations Society of American Western District Conference & California Association of Public Information Officials Annual Conference (Verbal Report) Mr. Micalizzi reported on his attendance at the Public Relations Society of America's Western District Conference, in San Diego, in March and the California Association of Public Information Officials Annual Conference, in Santa Barbara, in April. Both conferences were well attended by Public Affairs Officials from Orange County and water issues were topics of discussion at both as well. In addition to the networking opportunities, these conferences offered insight of key drivers of critical business functions, solutions for organizational challenges, and strategies and value propositions with measurable outcomes for Public Relations initiatives. 5.7. Future Outreach and Press Relations (Verbal Report) Mr. Micalizzi updated the Committee on items of potential media interest pertaining to the District. 5.8. Status of Current Public Outreach Activities The Committee reviewed the report, noting the growth of the bottled water program and the growing task of managing the outreach calendar. 2 5.9. Future Agenda Items and Staff Tasks None. 6. ADJOURNMENT 6.1. The meeting was adjourned at 5:35 p.m. The next Public Affairs - Communications- Technology Committee meeting is scheduled to be held Monday, June 2, 2014 at 4:00 p.m. K ITEM NO. 10.8 AGENDA REPORT Meeting Date: June 12, 2014 Subject: YLWD -City of Yorba Linda Joint Agency Committee (Kiley / Collett) • Minutes of the meeting held April 22, 2014 at 5:00 p.m. • Next meeting is scheduled to be held June 24, 2014 at 5:00 p.m. ATTACHMENTS: Name: 042214 City of YL - Minutes.docx Description: City of YL Mtg Minutes 04/22/14 Type: Minutes YORBA LINDA WATER DISTRICT/ CITY COUNCIL JOINT ADVISORY COMMITTEE MEETING MINUTES April 22, 2014 5:00 P.M. CALL TO ORDER The Yorba Linda Water District /City Council Joint Advisory Committee meeting convened at 5:01 p.m. in the Council Chambers at 4845 Casa Loma Avenue, Yorba Linda. PLEDGE OF ALLEGIANCE Mayor Pro Tern Gene Hernandez RC)I I rAl I Committee Members City Council: Gene Hernandez, Tom L...___, Water District: Ric Collett, Robert Kiley Steve Conklin, Mark Pulone ACTION CALENDAR o 1. Minutes of the YLWD /City Council Joint Advisory Committee meeting held on February 25, 2014. The Yorba Linda Water District /City Council Joint Advisory Committee approved the minutes of the February 25, 2014 Joint Agency meeting. DISCUSSION ITEMS 2. Landscape Maintenance Citizen Advisory Committee Public Works Director /City Engineer Michael Wolfe gave an update on the Landscape Maintenance Citizen Advisory Committee and responded to questions from the Committee. 3. Status of Cielo Vista and Esperanza Hills Development Projects Community Development Director Steve Harris provided a brief update on the two development projects and stated that there was no prospective date yet on the release of the final EIR for either development. YLWD /CC Board Agenda April 22, 2014 Page 1 of 2 4. Status of District's Plumosa Property Acting General Manager Steve Conklin reported that multiple offers were received for the Plumosa property and they are currently in escrow. 5. Town Center Project Update Public Works Director /City Engineer Wolfe provided an infrastructure update on the Town Center. Community Development Director Harris said that the developer had presented two new conceptual site plans to the City Council and that the City was continuing negotiations with some of the property owners. 6. Update on Yorba Linda High School Park Project, in coordination with YLWD Pipeline Relocation Project Acting General Manager Conklin provided a background on the tri- agency effort for the proposed park project. He said that construction was slated to begin in late summer. City Manager Mark Pulone stated that he met with Superintendent of Education Doug Domene that afternoon and reported that the school district hopes to select a contractor very soon and they are anxious to move forward. He also added that the project is anticipated to take eight months to complete. 7. Bastanchury Widening project Public Works Director /City Engineer Wolfe gave a general update on both segments of the widening project. He stated that they were currently working on some right -of- way issues on the portion from Eureka Avenue to Lakeview Avenue and construction was expected to begin in late fall or early winter depending on those issues. Mr. Wolfe also gave an update on the segment from Prospect Avenue to Imperial Highway and said that they are working with Southern California Edison on their design relocation and anticipate completion by mid to late summer. Lee Day, resident, spoke regarding undergrounding of the electrical lines and a brief discussion ensued among the Committee members and staff. 8. Status of Legislation for Transition of Seat on the OCSD Board Director Robert Kiley reported that he attended a Senate hearing in Sacramento along with Orange County Sanitation District President Troy Edgar and General Manager Jim Herberg in support of SB 946. He said that the bill was quickly passed in the Senate and it would then go before the Assembly and finally, it should be approved by the governor before summer. 9. Potential Sharing of GIS Files Acting General Manager Conklin stated that he recently met with City staff to discuss sharing of the District's GIS files. Mr. Conklin said that they would be happy to share files so that the City can move forward with their own GIS system. YLWD /CC Board Minutes April 22, 2014 Page 2 of 3 10. Update on Construction of YLWD Pump Station at Gun Club Road Acting General Manager Conklin stated that the Pump Station project was nearing completion and that the landscaping was proceeding according to the City's long- term plans. He said that the project was expected to be completed by the end of June. Lee Day, resident, received confirmation from the Committee that construction trailers would be removed from the site at the completion of the project. 11. Discussion of Potential Joint - Agency Turf Replacement Water Conservation Demonstration Project Acting General Manager Conklin spoke about a recently completed project with the City of Placentia where they removed grass along the medians on Yorba Linda Boulevard and replaced it with artificial turf. He said that the Municipal Water District of Orange County pays the City to replace grass and put in drought tolerant plants or artificial turf. Mr. Conklin stated that the City of Placentia would be saving significantly on watering and maintenance costs, and asked if Yorba Linda might be interested in carrying out a similar project. A brief discussion ensued among committee members and staff. City Manager Pulone said that he appreciated the information and that the matter would be discussed with Council in the near future. 12. Potential Future Agenda Items • Update on revised landscape palette • Storm Drain /Reservoir /retaining water on north side of Bastanchury Avenue • Drought update • Update on annexation ADJOURNMENT City Manager Pulone adjourned the meeting at 6:05 p.m. to the next Yorba Linda Water District /City Council Joint Advisory Committee meeting at 5:00 p.m. on June 24, 2014 at the Yorba Linda Water District offices. YLWD /CC Board Minutes April 22, 2014 Page 2 of 3 Meeting Date Subject: ATTACHMENTS: ITEM NO. 10.9 AGENDA REPORT June 12, 2014 YLWD - MWDOC -OCWD Joint Agency Committee (Kiley / Beverage) Minutes of the meeting held May 27, 2014 at 4:00 p.m. Next meeting is scheduled to be held July 22, 2014 at 4:00 p.m. Name: 052714 MWDOC OCWD - Minutes.docx Description: MWDOC -OCWD Mtg Minutes 05/27/14 Type: Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT JOINT AGENCY COMMITTEE MEETING WITH MWDOC AND OCWD Tuesday, May 27, 2014, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The May 27, 2014 meeting of the Yorba Linda Water District's Joint Agency Committee with MWDOC and OCWD was called to order at 4:10 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 3 4 YLWD COMMITTEE MEMBERS YLWD STAFF Director Robert R. Kiley Steve Conklin, Acting General Manager Director Michael J. Beverage MWDOC COMMITTEE MEMBER MWDOC STAFF Director Brett Barbre Rob Hunter, General Manager OCWD COMMITTEE MEMBER OCWD STAFF Absent Mike Markus, General Manager PUBLIC COMMENTS None. DISCUSSION ITEMS 4.1. MWD Water Supply Conditions and Outlook Dir Barbre reported that MWD water supply remains good, and that MWD is stepping up a radio -based campaign for greater water conservation efforts. He noted that water from the SWP is very limited with an allocation of 5 %. However, the conditions along the Colorado River are better due to a strong recent snowfall. 4.2. MWDOC Approved Budget and Rates Mr. Hunter reported that MWDOC's budget was approved by it Board, with a rate of $923.50/AF for Tier 1 treated water. He thanked YLWD for its joint letter of support for MWDOC's programs and efforts with the MWDOC- member agencies. 4.3. Status of Selection of MWD Director from MWDOC Dir Barbre and Mr. Hunter described the process being used by the 10 south county agencies to identify candidates for the above position. A short -list of candidates will be submitted to the MWDOC Board for the 1 selection of the representative. The selection should be complete within two months. 4.4. OCWD Basin Condition and Outlook Mr. Markus reported that the basin is at approximately 322,000 AF overdraft, or, with the deletion of the MWD CUP water, it is about 370,000 AF overdraft. Budgeted for the upcoming year is the purchase of MWD water, with a goal of not exacerbating the current overdraft condition. 4.5. OCWD Approved Budget, Replenishment Assessment (RA) and Basin Production Percentage (BPP) Mr. Markus reported that the OCWD Board has approved the budget for FY 14/15, as well as an RA of $296/AF and a BPP of 72 %. 4.6. Huntington Beach Poseidon Project and Status of Financial Analysis Mr. Markus reported that at its May 21 meeting, the OCWD Board considered retaining consulting services for a financial analysis. After considerable discussion, the Board elected to delay the decision to the June 4 Board meeting. 4.7. OCWD Annexation Mr. Conklin recalled that LAFCO considered and approved the OCWD annexation of the added lands in YLWD, IRWD and Anaheim at its May 14, 2014 meeting. He noted that if there are no protests or other issues, the process will be completed and the annexation effective on July 8, 2014. 4.8. Status of OCWD Groundwater Basin Cleanup Projects and National Contingency Plan Process Mr. Markus reported that his Board approved award of a consulting services contract with Kennedy /Jenks for services in compliance with the National Contingency Plan for the North Basin Project. He indicated that they hope to complete the requirements and begin construction in 18 months. Mr. Markus noted that they plan to comply with the NCP process for the South Basin Project, which is not as far along and will take longer to complete. 4.9. Status of Response to Senate Bill 26 Mr. Markus reported that Senator Correa submitted SB 26 that would amend the OCWD Act and would prohibit OCWD from entering into a real property lease agreement with a non - governmental entity for purposes that are not useful or necessary to replenish the groundwater basin within the District. He noted that the purpose of the bill is to prevent the District from entering into agreements such as that for the power plant being considered at the District's Ball Road Basin. Mr. Markus indicated that his Board voted to take an Oppose position on the bill, and to pursue avenues to have the bill stopped or deleted in the legislature. 04 4.10. YLWD Well Project Mr. Conklin reported that drilling of the well is complete, the quality and quantity is good, and that a report is forthcoming from the District's hydrogeology consultant on the recommended sustainable production from the well. Design of the wellhead facilities is beginning 4.11. Future Agenda Items None. 5. ADJOURNMENT 5.1. The meeting was adjourned at 5:10 p.m. The next YLWD /MWDOC /OCWD Joint Agency Committee meeting is scheduled to be held Tuesday, July 22, 2014 at 4:00 p.m. K Meeting Date Subject: ATTACHMENTS: AGENDA REPORT June 12, 2014 Meetings from June 13, 2014 - July 31, 2014 ITEM NO. 12.1 Description: Type: BOD - Activities Calendar.pdf Backup Material Backup Material Board of Directors Activity Calendar Event Date Time Attendance by: June 2014 Yorba Linda City Council Tue, Jun 17 6:30PM Kiley MWDOC Wed, Jun 18 8:30AM Melton OCWD Wed, Jun 18 5:30PM Collett Citizens Advisory Committee Meeting Mon, Jun 23 8:30AM Kiley Finance - Accounting Committee Meeting Mon, Jun 23 4:OOPM Beverage /Hawkins Yorba Linda LMCAC Mon, Jun 23 6:30PM Collett Joint Committee Meeting with City of Yorba Linda Tue, Jun 24 5:OOPM Kiley /Collett OCSD Wed, Jun 25 6:30PM Kiley Yorba Linda Planning Commission Wed, Jun 25 6:30PM Melton Board of Directors Regular Meeting Thu, Jun 26 8:30AM Beverage July 2014 Yorba Linda City Council Tue, Jul 1 6:30PM Collett MWDOC Wed, Jul 2 8:30AM Melton OCWD Wed, Jul 2 5:30PM Collett Planning- Engineering- Operations Committee Meeting Thu, Jul 3 4:OOPM Melton /Beverage Pub Affairs - Communications -Tech Committee Meeting Mon, Jul 7 4:OOPM Collett/Kiley Personnel -Risk Management Committee Meeting Tue, Jul 8 4:OOPM Hawkins /Melton LAFCO Wed, Jul 9 8:30AM Beverage Yorba Linda Planning Commission Wed, Jul 9 6:30PM Beverage Board of Directors Regular Meeting Thu, Jul 10 8:30AM Yorba Linda LMCAC Thu, Jul 10 6:30PM Beverage WACO Fri, Jul 11 7:45AM Kiley /Hawkins Exec - Admin- Organizational Committee Meeting Mon, Jul 14 4:OOPM Kiley /Collett Yorba Linda City Council Tue, Jul 15 6:30PM Kiley MWDOC Wed, Jul 16 8:30AM Melton OCWD Wed, Jul 16 5:30PM Collett Joint Committee Meeting with MWDOC and OCWD Tue, Jul 22 4:OOPM Kiley /Beverage OCSD Wed, Jul 23 6:30PM Kiley Yorba Linda Planning Commission Wed, Jul 23 6:30PM Melton Board of Directors Regular Meeting Thu, Jul 24 8:30AM Yorba Linda LMCAC Thu, Jul 24 6:30PM Collett Citizens Advisory Committee Meeting Mon, Jul 28 8:30AM Kiley Finance - Accounting Committee Meeting Mon, Jul 28 4:OOPM Beverage /Hawkins MWDOC Water Policy Forum Wed, Jul 30 5:30PM Board of Directors Workshop Meeting Thu, Jul 31 TBD ISDOC Thu, Jul 31 11:30AM Hawkins 6/5/2014 4:27:37 PM ITEM NO. 13.1 AGENDA REPORT Meeting Date: June 12, 2014 Subject: MWDOC Water Policy Forum & Dinner - July 30, 2014 STAFF RECOMMENDATION: That the Board of Directors authorize Director attendance at this event if desired. ATTACHMENTS: Description: Type: MWDOC Water Policy Forum.pdf Backup Material Backup Material Approved by the Board of Directors of the Yorba Linda Water District 6/12/2014 PH /RC 5 -0 Reserved tables, which include a table reservation sign with your organization's logo, are available for 8 guests ($600) or 10 guests ($750). To reserve a table, please contact Tiffany Baca at (714) 593 -5013. *Please note that the registration fee will increase to $85 per person after July 25th. Cancellations made after this date (and event no- shows) will be fully charged. We look forward to seeing you at the Water Policy Forum & Dinner! Sincerely, Larry D. Dick Board President Municipal Water District of Orange County (714) 963 -3058 It is with great excitement and distinct pleasure that the Municipal Water WANICIPAL WATER DIS TRICT 1 O "E • Ballroom ORANGE • • Anton C04NTY Reserved tables, which include a table reservation sign with your organization's logo, are available for 8 guests ($600) or 10 guests ($750). To reserve a table, please contact Tiffany Baca at (714) 593 -5013. *Please note that the registration fee will increase to $85 per person after July 25th. Cancellations made after this date (and event no- shows) will be fully charged. We look forward to seeing you at the Water Policy Forum & Dinner! Sincerely, Larry D. Dick Board President Municipal Water District of Orange County (714) 963 -3058 It is with great excitement and distinct pleasure that the Municipal Water District of Orange County (MWDOC) cordially invites you to attend a Water Policy Forum & Dinner featuring keynote speaker Randy Record, newly- _ Hotel elected Chairman of the Metropolitan Water District of Southern • Ballroom California. • • Anton At this important event, participants will have the opportunity to meet Mr. • sta. Mesa, CA 92626 Record and hear firsthand what he hopes to accomplish as he takes the Chairman's seat at the largest urban water supplier in the United States. As the imported water purveyor for nearly 19 million Southern Californians, the N J SOUTH Sn►vs� A decisions made at Metropolitan on pivotal issues like drought response, the '^ Bay Delta Conservation Plan, and new local water supply projects will have a '^ tremendous impact on our economy and way of life. TP v Don't miss this important event, which will take place on Wednesday, July 30th at the Westin South Coast Plaza Hotel in Costa Mesa. The event c� :aker will begin at 5:30 p.m. with a special pre - dinner reception honoring Chairman S1 gA�so� r r Record. At 6:30 p.m. dinner and the keynote presentation will begin in the / Grand Ballroom. Of . = rosaft'Corpwation Register Now! Registration is now available for $75 per person.* This fee includes the pre - dinner reception (cash bar), three- course dinner (choice of entree), and self- Oriving Directions parking. Online registration and payment options are available through the link above. Reserved tables, which include a table reservation sign with your organization's logo, are available for 8 guests ($600) or 10 guests ($750). To reserve a table, please contact Tiffany Baca at (714) 593 -5013. *Please note that the registration fee will increase to $85 per person after July 25th. Cancellations made after this date (and event no- shows) will be fully charged. We look forward to seeing you at the Water Policy Forum & Dinner! Sincerely, Larry D. Dick Board President Municipal Water District of Orange County (714) 963 -3058