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HomeMy WebLinkAbout2008-08-14 - Board of Directors Meeting Agenda PacketAgenda Packet Regular Meeting of the Board of Directors August 14, 2008 8:30am 1717 E. Miraloma Avenue, Placentia, CA 92870 ~L w Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, August 14, 2008, 8:30 A.M. 1717 E. Miraloma Avenue, Placentia, CA 92870 (714) 701- 3020 ITEMS DISTRIBUTED TO THE BOARD LESS THAN 72 HOURS PRIOR TO 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 htto://www.vlwdr&vlwd.com. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Ric Collett INTRODUCTION OF VISITORS AND 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 this 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 this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. SPECIAL RECOGNITION None ADJOURN TO 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. Conference with Legal Counsel regarding existing litigation to which the District is a party. (Justification for Closed Session is Government Code Section 54956.9(a)) Stuart Glenn and Jong Wen Wu vs. City of Yorba Linda and Yorba Linda Water District, Orange County Superior Count Case No. 060000083. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 2. Wells Capital Investment Report for the fourth quarter of fiscal year 2007/08. Recommendation: This is for information only. No action is required. 3. Review Action Levels outlined in the 2005 Urban Water Management Plan Chapter 8 - Water Shortage Contingency Plan. Recommendation: Provide direction to staff. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board actions. 4. Consider FY 2008/09 Public Outreach Campaign. Recommendation: That the Board of Directors approve the Fiscal Year 200812009 Public Outreach Campaign and authorize the President and Secretary to execute a Professional Services Agreement with Laer Pearce & Associates for an amount not to exceed $140, 000. 5. Consider Contract with Project Partners for Temporary Employment Services. Recommendation: That the Board of Directors authorize the General Manger to execute a Professional Services Agreement with Project Partners, subject to approval as to form by General Counsel, for a fee not to exceed $180,000 to provide engineering and administrative services for the District's Capital Improvement Projects for fiscal years 2007-2012. 6. Reconsider Consent Calendar Items approved on the June 26, 2008 and July 24, 2008 Board Agenda. Recommendation: Staff will provide a recommendation in the forthcoming Agenda.. CONSENT CALENDAR (Items 7 throuah 14) 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, the staff, or the public requests further consideration. 7. Minutes of the Regular Board of Directors meeting held July 24, 2008. Recommendation: Approve the minutes as presented. 8. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $3,982,426.06. 9. Progress Payment No. 3 for the Highland Reservoir Replacement Project. Recommendation: That the Board of Directors approve Progress Payment No. 3 in the net amount of $303,214.64 to Schuler Engineering Corporation for construction of the Highland Reservoir Replacement Project, Job No. 200309. 10. Progress Payment No. 15 for the Lakeview Reservoir Construction. Recommendation: That the Board of Directors approve Progress Payment No. 15 in the net amount of $357,936.98 to SSC Construction, Inc. for construction of the Lakeview Reservoir Project, Job No. 200704. -2- 11. Terms and Conditions for Water Service with Flavours, Inc., 24855 Corbit Place, Yorba Linda. Recommendation: That the Board of Directors approve the Terms and Conditions for Water Service with Flavours, Inc., Job No. 200810. 12. Terms and Conditions for Water and Sewer Service with Friends Christian High School, north of Bastanchury Road between Casa Loma and Eureka Avenues. Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Friends Christian High School, Job No. 200805. 13. Terms and Conditions for Water and Sewer Service with Placentia-Yorba Linda Unified School District, 4175 Fairmont Blvd, Yorba Linda. Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Placentia-Yorba Linda Unified School District, Job No. 200706. 14. Damage Claim filed by Dan W. Baer, 19369 Easy Street, Yorba Linda. Recommendation: That the Board of Directors reject and refer the claim to ACWA/JPIA. REPORTS. INFORMATION ITEMS AND COMMENTS 15. a. President's Report b. Directors Reports Director Armstrong - AB 2270 (Water Softeners) c. General Managers Report 1) Update on earthquake damages d. General Counsels Report COMMITTEE REPORTS 16. a. Executive-Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett 1) Minutes of meeting held August 13. 2) Meeting scheduled for September 16, 4:00 p.m. b. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills 1) Meeting scheduled for August 12 was cancelled. 2) Meeting scheduled for September 9, 4:00 p.m. -3- c. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summerfield 1) Minutes of meeting held August 11. 2) Meeting scheduled for September 8, 4:00 p.m. d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1) Minutes of meeting held August 7. 2) Meeting scheduled for September 4, 4:00 p.m. e. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong 1) Minutes of meeting held July 23. 2) Minutes of meeting held July 30. 3) Minutes of meeting held August 5. 4) Meeting scheduled for September 2, 4:00 p.m. f. MWDOC Ad Hoc Committee (Mills/Collett) Alternate: Summen`ie/d 1) Meeting scheduled for August 26, 4:00 p.m. g. City of Placentia Ad Hoc Committee (Beverage/Payne) 1) Meeting to be scheduled. INTERGOVERNMENTAL MEETINGS 17. a. Yorba Linda City Council, August 5 (Mills) b. MWDOC/MWD Joint Workshop, August 6 (Staff) c. OCWD Board, August 6 (Staff) d. MWDOC/OCWD Joint Workshop, August 12 (Staff) e. Yorba Linda Planning Commission, August 13, 7:00 p.m. (Summerfield) -4- BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after August 14, 2008. Agenda is available in the District office prior to meeting. Auaust 2008 Yorba Linda City Council, August 19, 6:30 p.m. Armstrong MWDOC Board, August 20, 7:30 a.m. I Staff OCWD Board, August 20, 5:00 p.m. Staff MWDOC Ad Hoc Committee, August 26,4:00 p.m. I Mills/Collett Yorba Linda Planning Commission, August 27, 7:00 p.m. Summerfield District Board Meeting, August 28, 8:30 a.m. September 2008 (-Public Information Committee, Sept 2, 4:00 p.m. Collett/Beverage Yorba Linda City Council, Sept 2, 6:30 p.m. Mills MWDOC/MWD Joint Workshop, Sept 3, 7:30 a.m. I Staff OCWD Board, Sept 3, 5:00 p.m. Staff Planning-Engineering-Operations Committee, Sept 4, 4:00 p.m. Mills/Armstrong Personnel-Risk Management Committee, Sept 8, 4:00 p.m. Armstrong/Collett Finance-Accounting Committee, Sept 9, 4:00 p.m. Beverage/Summerfield Yorba Linda Planning Commission, Sept 10, 7:00 p.m. Collett District Board Meeting, Sept 11, 8:30 a.m. Executive-Admin-Organizational Committee, Sept 16, 4:00 p.m. Summerfield/Mills Yorba Linda City Council, Sept 16, 6:30 p.m. Armstrong MWDOC Board, Sept 17, 7:30 a.m. Staff OCWD Board, Sept 17, 5:00 p.m. Staff Yorba Linda Planning Commission, Sept 24, 7:00 p.m. Summerfield District Board Meeting, Sept 25, 8:30 a.m. CONFERENCES AND SEMINARS 18. Authorize attendance of Directors and such staff members of the District as approved by the General Manager to attend the following conferences and seminars. a. 2008 Northern California Tour Sponsored by the Water Education Foundation. September 10-12 2008 ADJOURNMENT A regular meeting of the Board of Directors is scheduled for August 28, 2008, at 8:30 a.m., at 1717 E. Miraloma Avenue, Placentia 92870. Accommodation 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 Michael A. Payne, General Manager/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. -5- 2008 BOARD OF DIRECTORS CALENDAR 0 JUL S M T W T F S 1 2 3 41 5 6 7 8 9. 11 12 13 14 15 16 17 18 19 20 21 22 23M 25 26 27 28 29 30 31 OCT S M T W T F S 1 2 3 4 5 6 7 80 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 31 2009 BOARD OF DIRECTORS CALENDAR L' JAN S M T W T F S AUG S M T W T F S 1 2 3 10 4 11 5 12 6 7 13 = 8 15 9 16 17 24 18 25 19 26 20 21 27M 22 29 23 30 311 NOV S M T W T F S 1 2 9 3 10 4 5 6 111 12- 7 14 8 15 16 17 18 19 20 21 22 23 24 25 26 27 28129 301 FEB S M 1 2 8 9 15 16~ 22 23 T 3 10 117 24 W T 4 5 111 12 18 I, 25M SEP S M T W T 11 2 3 4 7 8 9 10- 14 15 16 17 18 21 22 23 24= 28 29 30 F S 5 6 12 13 19 20 26 27 DEC S M T W T F S 1 2 3 4 5 6 7 8 9 10® 12 13 14 15 16 17 1IR 19 20 21 22 23 24 25 26127 28 29 30 31 MAR S M T W T F S 1 2 3 4 5 6 7 8 9 10 11- 13 14 15 16 17 18 19 20 21 22 23 24 25M 27 28 29 30 31 1 JUN S M T W T F 7 1 8 2 9 3 4 10- 5 12 6 13 14 21 15 22 16 23 17 18 24 = 19 26 20 27 28 29 301 jj 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21.23 24 25 26 27 28 29 30 31 S M 5 6 12 13 19 20 26 27 APR T W T 1 2 7 8 9 14 15 1C> 21 22 23 28 29 30 F S 3 4 10 11 17 18 24 25 MAY F S 6 7 13 14 20 21 27 28 S M T W T F S 1 2 3 4 5 6- 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 251 26 27 29 30 31 Holiday Dec 2-5, 2008 - ACWA Fall Conference, Long Beach • Board Meeting Dec 15-17 - CRWUA 2008 Annual Conference, LV Activities May 19-22 - ACWA Spring Conference, Sacramento N ~N ° 4 O J ° Yorba Linda Water District r Q C> ~E Account 418611500 nn n Performance Summary Report For the period ended: Reportin.' Period: Month-to- Quarter to Date Date YTD Yorba Linda Water District 0.10% 0.60% 1.54% Investment Portfolio Lipper Institutional Money 0.21% 0.67% 1.65% Market Fund Index 5 00% . 4.50% ■ YLWD 4.00% ■ Lipper Inst. MM Fund Index 3.50% - 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% * -Inception date for purposes of performance calculation: 1111105 Returns are net of Wells Capital Management fees. ITEM NO. Annualized Return Since Inception* 4.55% 4.72% Month-to-Date Quarter to Date YTD Annualized Since Inception Yorba Linda Water District — Short Duration Market Review WELLS CAPITAL MANAGEMENT FV Second Quarter 2008 Ww .wellscap.com Economic Update There were some signs of improvement in the fixed income markets during the second quarter; however,conditions remain somewhat unsettled.Although the panic-buying of Treasuries has subsided,yield spreads across asset classes remain wide by historical standards.Downgrades of the bond insurance companies created confusion and pessimism in the municipal bond market in late June while the auction rate securities markets remain essentially frozen.In addition,banks,investment banks and government-sponsored enterprises(GSE)have reported huge losses,forcing many to replenish their capital accounts.It will take a considerable amount of time before normalcy returns to the markets.We anticipate that there will be more negative news and surprises in the months and quarters ahead. Despite the continued drag on economic growth from the housing recession and credit squeeze,growth for the first half of the year appears to be stronger than many economists had forecast.First-quarter GDP growth was revised up to 1.0 percent and recent data suggest a similar pattern of growth for the second quarter.Exports have provided the largest boost to GDP growth while consumer spending has also been a surprising contributor.Retail sales increased during the quarter due,in part to the increased sales in May from the tax rebates.As the tax rebate stimulus fades,so too will consumer spending,thus increasing the potential likelihood for a protracted period of sluggish growth through the remainder of the year. Although the economy has been fairly resilient—weathering the housing and credit shocks—a surprise energy shock emerged during the quarter.Oil prices set new record highs and gasoline prices have eclipsed$4 per gallon across the nation.Transportation companies.especially airline and trucking companies,are aggressively cutting operations and payrolls in an attempt to mitigate the negative effects of rising fuel costs on profits.While headline inflation has increased and inflation expectations are rising,core inflation has been relatively steady.The strength in energy and food prices,however,threatens to boost core inflation,which has placed the Fed in the challenging dual role of maintaining adequate growth and price stability. Heightened Competition,Weak"Pricing Power" Keep a Lid on "Core"Inflation Year Ago Percent Change 25 14 20 12 15 CPI,Food 8 Energy 10 (Left Scale) 10 8 5 6 As.bAA 0 IV 4 \j \j 5 °Core"CPI Z (Right Scale) -10 0 Source:U.S.Department of Labor On April 30,the FOMC lowered the Fed funds rate 25 bps to 2 percent.The language in the statement was fairly balanced,indicating a pause in monetary policy was probable,but not certain.At the June FOMC meeting,the Committee kept the funds rate unchanged at 2 percent,and made it clear in the statement that"the upside risks to inflation and inflation expectations have increased."This represented a notable shift in language as the less optimistic outlook for inflation in the June statement could be interpreted as a warning that a higher funds rate is possible before year-end.Downside risks to growth still remain and the unemployment rate,which is currently at 5.5 percent,will likely climb higher through the end of the year.The current conflicting economic signals require a delicate balancing act by the Fed. Agencies/GSEs Prolonged deterioration in the mortgage credit market continues to impact both Fannie Mae and Freddie Mac's earnings during Q108.Net income was marginally better than Q407;however,derivative losses and loss provisions weighed heavily on earnings.Fannie Mae raised an additional$6.5 billion during Q208 despite an already-ample capital cushion as mandated by its regulator,the Office of Federal Housing Enterprise Oversight(OFHEO).Freddie Mac also announced a$5.5 billion capital-raising campaign,and along with a reduction in capital surcharge required by OFHEO,would allow future portfolio growth for both agencies to be upwards of$100 billion.In addition to future business growth,the high capital cushion will also be a source of comfort for both senior and subordinate debt holders. The Federal Home Loan Bank System reported growth in its balance sheet during Q108 as earnings were healthy and without any significant credit losses.More importantly for FHLB debt holders,total capital grew to 52.3 billion and is well above the minimum required.The FHLB continues to be a critical funding source for banks during this distressed credit cycle.With declines in asset-backed commercial paper issuance,advances by the FHLB have increased substantially to offset the need for short-term financing from its member banks. While the Lehman 1-3-year Agency index posted a negative total return of-0.63 percent for the quarter,much of which occurred in April and May,the index has returned 2.15 percent year-to-date,with an excess return over Treasuries of 0.04 percent.With short agencies ending the quarter with attractive yields relative to Treasuries(two-year agencies yielding 60 basis points over Treasuries),we are overweighting agencies relative to corporates and asset-backed securities,consistent with our strategy to emphasize high quality sectors. 0.9 0.8 0.7 �0.6 y 0.5 0.4 0.3 0 5Y 10Y 15Y 20Y 25Y 30Y —U.S.All tt&d(30 June 2008:30 June 2008) Source:LehmanLive.com Corporates The tone of the credit market continued to improve early in the quarter,largely due to follow-through from the Fed's efforts in March to prevent a financial market collapse.However,by the end of June,the trends were significantly reversed as a consequence of increased pessimism over the state of the economy and the consumer,as well as renewed concern about further bank and broker write-downs.Credit spreads formed a U-shaped pattern during the quarter,reflecting this reversal in market tone and investor risk appetite.The option-adjusted spread for the Lehman 1-3 corporate index had dropped 40 basis points to approximately 240 by mid-June,but by the end of June,had retreated back to 270 basis points. A significant catalyst for the late quarter weakness in the credit market was the downgrades of both Ambac and MBIA by the ratings agencies.On June 4th,Moody's placed Ambac's and MBIA's ratings on review for downgrade.This was followed the next day by S&P downgrading both monolines to AA from AAA.The ratings downgrade of the monoline insurers has increased concerns about the monolines' ability to meet their obligations in the event that the securities they insure are unable to make scheduled principal and interest payments.Exposure to these risks are widespread across the financial markets and, arguably,concentrated at banks and brokerage firms.Given developments that have taken place with MBIA and Ambac,and given fairly strict fair value accounting rules,it is believed that some of the major banks and brokers will need to recognize significant additional write-downs on their credit default instruments and structured credit investments insured by the monolines. Other significant developments during the quarter in the corporate bond market include: AIG was placed on review for downgrade by Moody's and S&P in early May following an announced$7.8 billion quarterly loss,and plans to raise$12.5 billion in new capital;Fitch cut AIG from AA to AA-. Some regional banks reporting stresses in residential mortgage loan and commercial real estate loan portfolios;Midwest-based regional banks,such as Fifth Third and National City,seem to be particularly impacted. •National City was able to raise$6 billion in new capital from private investors,but found itself responding to a Wall Street Journal article noting that it is operating under a Memorandum of Understanding issued by the OCC;the rumor was confirmed by senior management. •Wachovia's CEO forced by Board to resign in light of financial challenges,a very poor first quarter and shareholder dissatisfaction over the purchase of Golden West at the height of the housing market/mortgage market bubble. Bear Steams's shareholders approved JP Morgan acquisition;acquisition closed May 30. Lehman reported very weak Q2 earnings,well below analyst estimates;shortly after,Lehman replaced its CFO and COO and also announced closing on a$4 billion common stock offering and a$2 billion preferred stock offering. •Countrywide shareholders approved the sale to Bank of America;the acquisition closed on July 1,followed by upgrades of CFC debt to fall in line with BofA's. Year-to-date,new,investment-grade corporate bond issuance is about$50 billion lower than the same period one year ago,representing about a 9 percent drop.Non-investment grade issuance is down a more dramatic 65 percent versus a year ago,reflecting the challenging market conditions debt issuers continue to face. Despite challenging market conditions,short duration corporate bonds significantly outperformed Treasuries during the quarter given the inflation driven sell-off in the Treasury market.The Lehman 1-3 Year Corporate Index returned 0.15 percent for the quarter,and is up 1.9 percent year-to-date.This compares to-0.96 percent and 2.08 percent,respectively,for the 1-3 Year Treasury Index.Though it should be noted that there was significant deviation between individual corporate sectors,as banks and brokers significantly underperformed industrial issuers.In light of the uncertain credit market environment,our strategy continues to emphasize high-quality asset classes and low allocations to the corporate sector relative to market-neutral conditions. 5-Year Single A Corporate Spread 250 a 200 150 100 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 ABS&MBS Significant declines in national home prices and fears that a«eak economy and the evaporation of home equity will stress consumer finance ABS were offset by relatively stable collateral performance and limited new supply.Returns for triple-A rated credit card and auto ABS were generally flat during the quarter,with the 1-3 year ABS auto and credit card index returning close 0.27 percent for the quarter and 1.71 percent year-to-date.We anticipate further stress on consumers in light of the struggling economy and therefore expect delinquencies and loss rates to increase in auto loan and credit card pools.However, we remain comfortable with the credit support and structure of the deals that remain highly rated by our internal credit research team,and believe they will continue to perform well through the ongoing economic slowdown. Housing price declines and further deterioration in home equity loan collateral further pressured the home equity sector,though returns in the home equity ABS varied significantly depending upon weighted average pool life and credit rating of the pool.Through April,the Case-Shiller 20-city composite index of housing prices was down over 15 percent,annualized.Delinquency and default rates in sub-prime loan pools continued to climb through the quarter as well.The ratings agencies are now forecasting loss rates exceeding 20 percent for 2006 and 2007 vintage sub-prime loans.Despite the negative headlines,the rate of home price depreciation slowed in April relative to February and March in most markets,suggesting a bottoming of the housing market could be in the early stages of development.We continue to believe that the credit support of the AAA rated,senior tranche home equity deals we hold will absorb peak losses before significant principal is compromised.We therefore continue to recommend holding these securities rather than liquidating,on the belief that returns over time will surpass the value of liquidating today in a distressed market environment. Agency mortgages continued to be a safe-haven asset class for portfolios during the quarter.For the quarter,the 0-5 year duration mortgage index returned 0.39 percent,and is up 2.43 percent year-to-date.Over a 12-month time frame,the index is up 7.52 percent,illuminating the critical role this asset class has played in portfolios in an environment of a turbulent and weak corporate credit market.We have been emphasizing short duration agency CMOs in portfolios that allow MBS in light of attractive spreads. 2Q 2008 Portfolio Strategy Duration and Yield Curve: IF Portfolio durations are neutral to benchmarks. Higher rates are expected by the end of the year but accounts are currently neutral as markets deal with credit turmoil and slower growth.Fed is expected to be on hold for the remainder of the year. IF Portfolios are neutraUbulleted to take advantage of steep/steepening curve. Sector and Security Selection: Corporate cash portfolios continue to emphasize liquidity. Corporate bonds and ABS are attractive at historically wide spreads,but liquidity is still strained. Due to issuer diversification,focus on high internal ratings,and emphasis on large liquid issuers Corporate and ABS exposure is generally less than 30%and 20%respectively. PF Agency debentures and CMOs are attractive due to valuation and liquidity. Given decreased exposure to Corps and ABS,agency exposure is high(relative to historical levels)and increasing. Capital concerns at FNMA and FHLMC and the resulting widening in agency spreads are viewed as a buying opportunity. The Fixed Income Portfolio Managers hime written this commentary.for informational purpases only and is not intended as an offer to sell or a solicitation of an offer to buy any security.The views expressed on the financial markets and security valuations are based on the judgment and experience of the Fired Income Investment team.Past performance is not a guarantee of figure returns.It should not be assumed that the portfolio holdings discussed or ttmestments made in the funtre will be profitable or will equal the performance of those discussed in this commentary.A complete list oJ'holdings and portfolio commentaries are arailahle for the past year upon request. ITEM NO. ~ CHAPTER 8.0: WATER SHORTAGE CONTINGENCY PLAN With population growth, energy shortages, earthquakes, and the threat of terrorism experienced by California; maintaining the gentle balance between water supply and demand is a complicated task that requires planning and forethought. In the event that a water shortage occurs, simple measures can be implemented to conserve the water supply at a public level. Urgency Ordinance No.91-02 (Appendix E) enables the YLWD Board of Directors to adopt an emergency water management program if the necessity is found. In addition, the California legislature enacted in 1949 specific statutory authority for rationing applicable to all public water supply distributors (California Water Code, Sections 350-358). The water supplier does not have to be in an actual drought condition where there is not enough water for human consumption, sanitation, and fire protection; merely the threat of the condition occurring is enough. Once a local agency has declared the existence of an emergency condition or a water shortage, it is empowered to adopt regulations and restrictions on the delivery and consumption of water to conserve the water supply for the greatest public benefit. Service can, if necessary, be discontinued to customers who willfully violate established regulations. The following conditions characterize urgency and require the Ordinance to take effect: 1. California is in the fifth consecutive year of drought conditions; and, 2. Precipitation for the current water year is substantially below normal in the watersheds of the water supplies serving Southern California; and, 3. The completion of the State Water Project to Southern California are being cutback; and, 4. Metropolitan has instituted water conservation goals with severe monetary penalties for not meeting the goal; and, 5. MWDOC, as a member agency of Metropolitan, has also instituted water conservation goals with severe monetary penalties for YLWD. 6. YLWD has broad authority to enact water conservation rules under the laws of the State of California; and, 7. The public's adoption of water conservation measures is now, or may be, necessary to avoid or minimize the effects of the water shortage in Southern California. Risk Management Professionals rOFTN ORBAIINOANAIROISTRICTO BY AUG 1 2 8 . M C~, 8.1.1 Stages of Action In Table 8.1-1: Water Supply Shortage Stages and Conditions, stages are discussed during which various conservation measures will be imposed by Ordinance No. 91-02, beginning with voluntary conservation and leading to various stages of mandatory compliance in the event that the water supply experiences shortages up to a 50% reduction of the water supply. Water Supply Conditions Level 1 measures may be declared by the Board of Directors when, in their judgment, the possibility exists YLWD may not be able to meet all of the demands of its customers without punitive surcharges levied against YLWD due to restrictions on imported supply. Level 2 measures, hereinafter referred to as "Water Watch", may be declared by the Board of Directors when, in their judgement, the probability exists that YLWD will not be able to meet all of the water demands of its customers without punitive surcharges Percent Shortage The Board of Directors shall, by separate Resolution, establish voluntary conservation goals and advise customers of ways to conserve water. The Board of Directors shall, by separate Resolution, determine the extent of conservation required by setting a percentage of the Base Target Amount for high priority and low priority water use, advise customers of levied against YLWD due to restrictions on imported ways to save water and may enforce such supply. allocation by mandating certain practices...... Stage 3: Mandatory Reduction - Water Warning (Targeted 35% Reduction) Level 3 measures, hereinafter referred to as "Water Warning", may be declared by the Board of Directors when, in their judgment, YLWD will not be able to meet all of the water demands of its customers without punitive surcharges levied against YLWD due to restrictions on imported supply. The Board of Directors shall, by separate resolution, determine the extent of conservation required, set a percentage of the Base Target Amount for high priority and low priority water use, advise customers of ways to save water and may enforce such allocation by mandating certain practices..... 11 Risk Management Professionals M Water Supply Conditions Percent Shortage Stage 4: Water Emergency (Targeted 50% Reduction) Level 4 measures, hereinafter referred to as "Water The Board of Directors shall, by separate Emergency", may be declared by the Board of Resolution, determine the extent of Directors when the failure of any supply or distribution facility, whether temporary or permanent, occurs in the water distribution system of the State Water Project, conservation required, set a percentage of the Base Target Amount for high priority and low priority water use, advise customers of ways to Metropolitan Water District of Southern California, Municipal Water District of Orange County, Orange County Water District or Yorba Linda Water District may seriously affect the ability to supply water to customers. 8.1.2 Discussion of the Base Target Amount save water and may enforce such allocation by certain practices. 1 A Base Target Amount shall be established for each connection in the YLWD corresponding to the average water consumption by meter size for areas with similar land uses, lot or home size, landscape sophistication and economic location for each two month billing cycle in fiscal year 1989-1990. 2 The Base Target Amount for the residential customers may be adjusted to account for families larger than the YLWD wide average of three (3) persons per household at the rate of 100 gallons per day per additional person for four (4) to a maximum of seven (7) persons per household. 3 Customers with multiple metered connections in the same revenue classification, serving similar land uses may, upon approval in advance by the YLWD, allocate the Base Target Amount between their connections. 4 In cases where there is insufficient historical data to establish a Base Target Amount, YLWD shall establish a Base Target Amount by comparing water users similar as to type, lot or home size, landscape sophistication and economic location. 5 The Base Target Amount may be established and adjusted based upon a determination by the Board of Directors of high priority and low priority water uses. Risk Management Professionals In order to prepare for and prevent water supply shortage, it is useful to estimate the future minimum supply. The minimum water supply available to the Yorba Linda Water District for next three years is estimated based upon the driest three year historic sequence, and is compared to a normal three year estimate. To balance the effects of multiple dry years, more water will be imported from MWDOC resulting in an increase in the minimum supply during multiple dry years compared to normal years. Through regional modeling efforts, MWDOC has determined minimum water supplies available for the Yorba Linda Water District for each of the next three years, 2006 - 2008. Table 8.2-1: Three-Year Estimated Minimum Water Supply compares supplies available under normal conditions and supplies available under a hypothetical repeat of the historical driest three year period for the Yorba Linda Water District, 1959-1961. During multiple-dry years, less local supplies are available for retail consumption and retail demands increase, resulting in the use of increased imported supplies from Metropolitan, via MWDOC, to offset the reduction in local supplies. Even with the decrease in local supplies, Yorba Linda Water District is expected to meet all retail consumption during a three-year dry period of 2006-2008 based on the three driest years on record. In addition, Metropolitan is expected to be able to supply all of MWDOC's imported water during the same period. Metropolitan's 2005 Regional Urban Water Management Plan indicates that Metropolitan can provide 100% of the supply demanded by its member agencies until 2030. Source Normal Year Multiple Dry Year 2006 2007 2008 2006 2007 2008 undwater 12,555 13,876 14,721 12,795 13,833 15,491 ange County Basin) olesale Water 12,372 11,346 10,796 13,804 12,327 11,447 :ropolitan (via MWDOC) al 24,926 25,222 25,517 26,599 26,160 26,939 Risk Management Professionals As a California jurisdiction, the Yorba Linda Water District could experience a catastrophic interruption in the water supply as a result of a regional power outage, earthquake, terrorism, or other event. A successful recovery plan is dependent upon an in-depth understanding of the vulnerability of each source of supply, delivery system, and distribution system to potential catastrophes. Possible catastrophes are listed in Table 8.3-1 and preparation actions being taken to reduce the severity of each event are discussed below. Earthquake Terrorism a 8.3.1 Regional Power Outage The operation of YLWD's groundwater wells and booster pump stations is dependent on the energy source. Backup sources of energy such as propane tanks, emergency generators, and natural gas supplies, are available at many of YLWD's facilities. These alternative energy sources improve the reliability of YLWD's water supply. Additionally, the existence of multiple wells within YLWD's facilities creates redundancy and reduces the likelihood that all wells will be out of service simultaneously. 8.3.2 Earthquake The Yorba Linda Water Distract has implemented seismic criteria (e.g., seismically actuated valves, flexible piping, etc.) into the design of new reservoirs as the standard since 1997. In addition, flexible piping is used for the gas lines providing power to booster pumps and well sites. Risk Management Professionals Possible Catastrophe Check if Discussed Regional Power Outage YLWD has developed a comprehensive Emergency Response Plan to address the specific responses to earthquakes, damage assessments, evacuations, and major line breaks. The Emergency Response Plan also identifies agency and mutual aid contacts to help restore YLWD's critical water system infrastructure. 8.3.3 Terrorism To address terrorism catastrophes, YLWD has completed an extensive Security Vulnerability Assessment according the Sandia National Laboratories Risk Assessment Methodology for Water Systems (RAM-Wsm). As part of this project, YLWD prioritized criteria, prioritized facilities, characterized high priority facilities, developed threat scenarios based upon threat assessment methodologies, and used a Scenario-Based Assessment approach to develop recommendations in the form of prioritized lists of security countermeasures. YLWD is currently implementing these recommendations; however, due to the security sensitive nature of the information these recommendations are not included in this Urban Water Management Plan Risk Management Professionals • YLWD is organized pursuant to the provisions of County Water District law under Division XII of the California Water Code (Section 30000 et seq.). Accordingly, YLWD has the authority to adopt Ordinances and Rules and Regulations to: 1. Restrict the use of water during any emergency situation caused by drought or other conditions. 2. Prohibit the waste of water or the use water during such periods for any purposes other than household, restricted, or nonessential uses as determined by the district. 8.4.1 Water Shortage Planning 8.4.1.1 Metropolitan In November, 1990, as a result of limited supplies, Metropolitan developed a water conservation program called the Incremental Interruption Conservation Program (IICP), intended to reduce the amount of water delivered to its member agencies under severe deficiencies. The IICP established six levels of reduction by up to 50% depending on drought and water supply conditions. Metropolitan's IICP is no longer in effect. Revisions of the IICP and deletion of the voluntary stage (Stage 1) were adopted by Metropolitan's Board of Directors in the Metropolitan 1995 Drought Management Plan (DMP). This plan included step-by-step strategies for evaluating supply and demand conditions and utilizing Metropolitan's available options. Several phases are incorporated into the DMP with the final phase being the implementation of mandatory stages of the IICP. The 1995 DMP was not implemented in 1995 because of the above normal statewide precipitation in January and February of that year and because Metropolitan received a 100 percent allocation of its State Water Project supply. As part of the implementation of the regional Integrated Resources Planning (IRP), Metropolitan developed a Water Surplus and Drought Management (WSDM) Plan for Southern California in April 1999. The guiding principle of the WSDM Plan is to manage Metropolitan's water resources and water management programs to minimize the adverse impacts of water supply shortages to retail customers. The WSDM Plan contains specific actions to be taken in drought conditions to meet consumptive demands for water. This plan directs Metropolitan's resource operations to help attain the region's 100% reliability goal. The WSDM Plan was updated in Risk Management Professionals M 2004 to account for changes impacting supplies from the Colorado River and California's Bay- Delta. In the past, Metropolitan has developed drought management plans that simply addressed shortage actions and primarily focused on issues of short-term conservation and allocation of imported water. The WSDM Plan recognizes the interdependence of reliability. The overall goal of the WSDM Plan is to ensure that shortage allocation of Metropolitan's imported water supplies is not required. 8.4.1.1 Yorba Linda Water District YLWD has implemented many of the voluntary and mandatory programs identified in Chapter 6 of this Plan. These programs are designed to either increase local supply and/or reduce consumption during short term and/or long term deficiency periods. YLWD's response to water supply shortages is only part of a coordinated effort that includes, but is not limited to, planning by Metropolitan, MWDOC, OCWD, other agencies adjacent to the District, the City of Yorba Linda and other cities in YLWD's jurisdiction. Yorba Linda Water District has many water conservation programs and practices in place. A decrease in the reliable water supply from imported sources and the yearly increases in population require that Yorba Linda Water District encourage the best and most efficient use of water within the service area. Toward this end the measures, programs and practices described in this Chapter have been implemented by the District. The precise timing to implement the voluntary or mandatory programs and the extent to which these programs are implemented will depend upon the best available facts at the time a decision needs to be made. Implementation may vary according to the perceived need, confirmation of the severity of an actual shortage and anticipated duration of the shortage. Reference is made to the 2005 Urban Water Management Plans adopted by Metropolitan Water District of Southern California and Municipal Water District of Orange County, and to Orange County Water District's "2020 Plan". Risk Management Professionals 8.4.2 Consumption Reduction Methods and Mandatory Prohibitions Exhibit "A" of Ordinance 91-02 urges residential, commercial, and public water consumers to adopt voluntary water conservation measures. The Water Conservation Practices contained in the Ordinance are listed below in Table 8.4-2: Consumption Reduction Methods. Voluntary water conservation goals (i.e. reduction percent) shall be established by the Board of Directors by a Resolution in the event that urgency exists. As addressed in Table 8.1-1: Water Supply Shortage Stages and Conditions, the Board of Directors has the authority to mandate such conservation practices by separate Resolution. The resolution shall address the extent of conservation required by setting a percentage of the Base Target Amount for high priority and low priority water use, and advise customers of ways to save water. Actuation Consumption Reduction Methods and Prohibitions Stage 9, " Customer Actions Check monthly for plumbing leaks and any leaks found should be repaired 1. Level 1 immediately. Irrigate commercial nurseries, golf courses, parks, school yards, traffic medians and other public open space and other non residential landscaped 2. Level 1 areas no more often than every third day, and only between the hours of 6:00 p.m. and 5:00 a.m. Reduce outside irrigation schedules to the absolute minimum to keep 3. Level 1 important plants alive. Withhold fertilizer to inhibit new growth. Residential customers with addresses ending with an even number water lawns, landscaping and other turf areas only on even number days of the month and between the hours of 4:00 p.m. and 10:00 a.m. Residential 4. Level 1 customers with addresses ending with an odd number water lawns, landscape, and other turf areas only on odd number days of the month and between the hours of 4:00 p.m. and 10:00 a. m. Risk Management Professionals Adjust sprinklers to avoid "watering" sidewalks and gutters, and lower 5. Level 1 pressure to avoid creating a wasteful mist. Eliminate washing of sidewalks, walkways, buildings, walls, patios, driveways, parking areas or other paved surfaces, or walls except to 6. eliminate conditions dangerous to public health or safety or when required Level 1 as surface preparation for the application of architectural coating or painting, and to alleviate immediate fire hazards. Curtail water use to clean, fill or maintain levels in decorative fountains, 7. ponds, lakes, or other similar aesthetical structures unless such water use is Level 1 approved in advance by YLWD. Curtail water used for the initial filling or refilling of swimming pools, spas or 8. ponds unless such water use is approved in advance by YLWD. Level 1 Replacement due to evaporation is permitted. Curtail washing of motor vehicles, trailers, boats and other types of equipment unless a bucket and a hose equipped with a positive shutoff g, Level 1 nozzle for quick rinses is used. Washing of vehicles may be done by a commercial car wash that uses recycled water. Display notice that water will be served only upon request at all restaurants, 10. hotels, cafes, cafeterias or other public place where food is sold, served or Level 1 offered for sale. Water should only be served when requested by a customer in restaurants, 11. hotels, cafes, cafeterias or other public places where food is sold or offered Level 1 for sale. Risk Management Professionals Consumption Reduction Methods and Prohibitions Actuation Stage Actuation Consumption Reduction Methods and Prohibitions Stage Post notice of the water supply shortage in each room of hotels, motels, inns, guest houses, bed and breakfast facilities and short-term commercial 12. Level 1 lodgings along with an explanation of necessary compliance measures taken by the establishment. Install low-flow shower heads, toilet dams or low-flow toilets, and faucet 13. flow restrictors in each room of hotels, motels, inns, guest houses, bed and Level 1 breakfast facilities and short-term commercial lodgings. 14. Hand water plants with a positive shut-off hose nozzle. Level 1 15. Place a plastic bottle, bag or dam in all toilets. I Level 1 16. Use automatic dish and clothes washers for full loads only. I Level 1 Insulate hot water pipes to reduce waiting time for hot water. Install 17. Level 1 circulating hot water system or point-of-use water heater. 18. Turn off the water while brushing teeth, washing hands and/or shaving. I Level 1 19. Install water saving shower heads and/or flow restrictors. I Level 1 Take shorter showers. Turn off the water when lathering, shampooing, or 20. Level 1 shaving. Turn the shower back on to rinse. Capture bath/shower warm-up water in buckets and use the water to irrigate 21. Level 1 plants or to flush toilets. 22. Use garbage disposers sparingly. I Level 1 23. Do not plant any annuals or new plants that will require extra watering. I Level 1 Risk Management Professionals M Actuation Consumption Reduction Methods and Prohibitions Stage Place mulching material in landscaped areas to decrease soil moisture 24. Level 1 evaporation. 25. Use a broom to clean outside patios, porches and sidewalks. Level 1 Cover spas and swimming pools when not in use. If spa or pool will not be 26. used, make necessary preparations for not refilling the spa or pool while Level 1 shortage lasts. District Actions Limit use of water from fire hydrants to fire fighting, approved construction 1. activities or other activities as approved by YLWD as necessary to maintain Level 1 the health, safety and welfare of the public. Turn off all construction meters until the condition(s) causing the shortage 2. Level 1 are abated to the satisfaction of the General Manager. 3. Issue no construction meters for earth work or road construction purposes. Level 1 4. Moratorium on new service connections. Level 1 Risk Management Professionals M 8.5.1 Penalties The following enforcement measures shall apply to any customer who willfully disregards any of the mandated and/or prohibited water management practices. Penalties Warning Letter Explaining Violation Flow Restricting Orifice Charges Excess Water Use Rate One-Time Charge of Two Times the Latest Water Bill Charge for Costs of Installation and Removal of Flow Restricting Orifice 8.5.1.1 First Violation Stage When Penalty Takes Effect 1 st Violation 2nd Violation 3rd Violation Stage When Penalty Takes Effect Any Violation 2"d Violation 3rd Violation A written warning shall be mailed to the customer. The warning shall state the violation and that if the matter is not corrected, additional enforcement measures may be taken. 8.5.1.2 Second Violation A letter shall be mailed to the customer explaining the violation and a one time charge equal to two times the most recent water bill will be charged to the customer. 8.5.1.3 Third Violation An orifice flow restrictor will be inserted into the customer's meter to reduce the rate of flow. The orifice will remain in the service line for one billing cycle. The customer shall pay the cost to insert and remove the orifice flow restrictor. Risk Management Professionals M 8.5.1.4 Fourth and Subsequent Violations Service of water will be subject to further restriction with an orifice or termination of service. The term is at the General Manager's discretion so as to minimize the health and safety affects to the customer. 8.5.1.5 Excess Water Use Rate Water consumption in excess of the Base Target Amount or percentage of the Base Target Amount established or as modified by the Board of Directors will be charged to YLWD's current water rate plus a surcharge equal to the accumulative cost per acre foot of any penalty rate adopted by Metropolitan plus any penalty rate adopted by MWDOC plus any penalty rate adopted by OCWD converted to a unit cost per on hundred cubic feet. 8.5.2 Due Process Procedures 8.5.2.1 Notification The General Manager shall notify a customer that YLWD intends to surcharge water usage or to restrict or shut off water service. In the cases of flow restriction or shut off, the notice shall be delivered at least 72 hours in advance. The General Manger shall provide an opportunity to the customer within that time to dispute YLWD's determination of non-compliance with Ordinance No. 91-02 (Appendix E) or to demonstrate that compliance has been achieved subsequent to the notice. 8.5.2.2 Compliance Period The General Manager may revoke, modify, or extend time for compliance with a notice of intent to surcharge water usage or to restrict or shut off water service if the General Manager is reasonably satisfied that such action will be consistent with the best interests of YLWD and/or the purposes of Ordinance No. 91-02 (Appendix E). 8.5.2.2 Restoration of Service The General Manager shall provide for restoration of restricted or shutoff service upon a determination that appropriate steps to assure compliance with Ordinance No. 91-02 (Appendix E) have been taken. The customer shall be responsible, as a precondition of service restoration, to pay YLWD's normal and usual shutoff and turn-on fees and to comply with such other YLWD Rules and Regulations as apply to customers' service shutoff for nonpayment of water bills. Risk Management Professionals W In the event that a decrease in water supply occurs for an extended period of time, YLWD could face a potential loss requiring the water enterprise to draw from any reserves and also re- examine the revenue stream in order to balance the budget. It is thus important to consider possible measures to overcome revenue and expenditure impacts. 8.6.1 Measures to Overcome Revenue Impacts Narnes of Measures Check if Discussed 1. Rate Adjustment 2. Water Fund Balance 3. Bonds 1. Rate Adjustment Should YLWD experience a significant decrease in water supplies for an extended period of time, the Board of Directors would consider a water rate increase or water fee surcharge to cover any revenue shortfall due to water shortages or conservation measures. 2. Water Fund Balance YLWD maintains a Water Fund Balance that can be drawn upon for minor revenue shortfalls that need to be addressed immediately from decreased water supplies. The Board of Directors would consider a rate increase to restore this fund for future unexpected emergency situations. 3. Bonds YLWD maintains a high bond rating in order to secure bonds for unexpected facility replacements and repairs. Risk Management Professionals M 8.6.2 Measures to Overcome Expenditure Impacts Names of Measures Check if Discussed 1. Capital Improvements Program 1. Capital Improvements Program The Yorba Linda Water District is committed to increasing their ability to produce groundwater from the Santa Ana Basin by means of improvements to their water system. These improvements will reduce YLWD dependency on more expensive water purchased from MWDOC. Risk Management Professionals M 1. Production Meter Readings 2. Imported Water Metering GPD GPD 3. Residential Water Metering and Site GPD Monitoring 1. Production Meter Readings YLWD has meters on all wells that provide access to daily water use readings. An analysis of the daily production meter readings will provide values for actual reductions in water use. 2. Imported Water Metering YLWD has meters on all imported water connections that provide access to readings of daily quantities of imported water. 3. Residential Water Metering and Site Monitoring During stages of mandatory conservation, YLWD will conduct monthly residential meter readings and site monitoring, as necessary. Site monitoring will be prioritized based upon the amount of water consumed. For those customers not in compliance with the mandatory conservation, YLWD will manually shut-off the connection until compliance is confirmed. Risk Management Professionals Mechanisms for Determining Actual Type of Data Expected Reductions y ~ ~ ORDINANCE NO. 91-02 AN URGENCY ORDINANCE OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT FINDING THE NECESSITY FOR AND ADOPTING AN EMERGENCY WATER MANAGEMENT PROGRAM WHEREAS, California is in the fifth consecutive year of drought conditions; and, WHEREAS, precipitation for the current water year is substantially below normal in the watersheds of the water supplies serving Southern California; and, WHEREAS, the completion of the State Water Project continues to be delayed; and WHEREAS, water deliveries from the State Water Project to southern California are being cutback; and WHEREAS, the Metropolitan Water District of Southern California has instituted water conservation goals with severe monetary penalties for not meeting the goal; and, WHEREAS, the Municipal Water District of Orange County, as a member agency of the Metropolitan Water District of Southern California, has also instituted water conservation goals with severe monetary penalties for the Yorba Linda Water District; and, WHEREAS, the Yorba Linda Water District (hereinafter referred to as District) has broad authority to enact water conservation rules under the laws of the State of California; and, WHEREAS, the public's adoption of water conservation measures is now, or may be, necessary to avoid or minimize the effects of the water shortage in southern California. NOW, THEREFORE, BE IT ORDAINED THAT THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT, under the authority of Water Code Sections 350 et seq, 375 et seq, 31024, 31026 and 31027 as follows: Section 1. Findings - Declaration of Water Shortage Emergency. The Board does hereby find that the matters set forth in the recitals above are true and correct and constitute an emergency condition or a threatened or existing water shortage condition within the District. These conditions require this urgency Ordinance to take effect immediately. Section 2. Priority Uses of Water. In order to promote water conservation, the objective of the different Levels of water management are to curtail the low priority uses of water. Low priority uses of water are generally described as all uses other than for drinking, cooking, bathing, sanitation, fire suppression, or for medicinal or health related uses requiring water, such as dialysis machines. Section 3. Base Target Amount. a. A Base Target Amount shall be established for each connection in the Yorba Linda Water District corresponding to the average water consumption by meter size for areas with similar land uses, lot or home size, landscape sophistication and economic location for each two month billing cycle in fiscal year 1989-90. b. The Base Target Amount for the residential customers may be adjusted to account for families larger than the District wide average of 3 per persons per household at the rate of 100 gallons per day per additional person for four (4) to a maximum of seven (7) persons per household. c. Customers with multiple metered connections in the same revenue classification, serving similar land uses may, upon approval in advance by the District, allocate the Base Target Amount between their connections. d. In cases where there is insufficient historical data to establish a Base Target Amount, the District shall establish a Base Target Amount by comparing water users similar as to type, lot or home size, landscape sophistication and economic location. e. The Base Target Amount may be established and adjusted based upon a determination by the Board of Directors of high priority and low priority water uses. Section 4. Level 1 - Voluntary Conservation Measures. Level 1 measures may be declared by the Board of Directors when, in their judgment, the possibility exists the District may not be able to meet all of the demands of its customers without punitive surcharges levied against the District due to restrictions on imported supply. The Board of Directors shall, by separate Resolution, establish voluntary water conservation goals and advise customers of ways to conserve water. Section 5. Level 2 - Mandatory Conservation. Level 2 measures, hereinafter referred to as "Water Watch", may be declared by the Board of Directors when, in their judgment, the probability exists that the District will not be able to meet all of the water demands of its customers without punitive surcharges levied against the District due to restrictions on imported supply. The Board of Directors shall, by separate Resolution, determine the extent of conservation required by setting a percentage of the Base Target Amount for high priority and low priority water use, advise customers of ways to save water and may enforce such allocation by mandating certain practices identified in Exhibit "A" of this Ordinance. Section 6. Level 3 - Mandatory Reduction. Level 3 measures, hereinafter referred to as "Water Warning", may be declared by the Board of Directors when, in their judgment, the District will not be able to meet all of the water demands of its customers without punitive surcharges levied against the District due to restrictions on imported supply. The Board of Directors shall, by separate Resolution, determine the extent of conservation required, set a percentage of the Base Target Amount for high priority and low priority water use, advise customers of ways to save water and may enforce such allocation by mandating certain practices identified in Exhibit "A" of this Ordinance. Section 7. Level 4 - Water Emergency. Level 4 measures, hereinafter referred to as "Water Emergency", may be declared by the Board of Directors when the failure of any supply or distribution facility, whether temporary or permanent, occurs in the water distribution system of the State Water Project, Metropolitan Water District of Southern California, Municipal Water District of Orange County, Orange County Water District or Yorba Linda Water District may seriously affect the ability to supply water to customers. The Board of Directors shall, by separate Resolution, determine the extent of conservation required, set a percentage of the Base Target Amount for high priority and low priority water use, advise customers of ways to save water and may enforce such allocation by certain practices identified in Exhibit "A" of this Ordinance. Section 8. Rate for Excess Water Use. Water consumption which is in excess of the Base Target Amount or percentage of the Base Target Amount as established or as modified by the Board of Directors will be charged the District's current water rate plus a surcharge equal to the accumulative cost per acre foot of any penalty rate adopted by the Metropolitan Water District of Southern California plus any penalty rate adopted by the Municipal Water District of Orange County plus any penalty rate adopted by the Orange County Water District converted to a unit cost per one hundred cubic feet. Section 9. Enforcement. a. Degrees of Violation. The following enforcement measures shall apply to any customer who willfully disregards any of the mandated and/or prohibited water management practices adopted pursuant to this Ordinance: First violation: A written warning shall be mailed to the customer. The warning shall state the violation and that if the matter is not corrected, additional enforcement measures may be taken. 2. Second violation: A letter shall be mailed to the customer explaining the violation and a one time charge equal to two times the latest water bill will be charged to the customer. 3. Third violation: An orifice flow restrictor will be inserted into the customers meter to reduce the rate of flow. The orifice will remain in the service line for one billing cycle. The customer shall pay the cost to insert and remove the orifice flow restrictor. 4. Fourth and subsequent violations: Service of water will be subject to further restriction with an orifice or termination of service. The term is at the General Manager's discretion so as to minimize the health and safety affects to the customer. b. Due Process Procedures. 1. The General Manager shall notify a customer that the District intends to surcharge water usage or to restrict or shut off water service. In the cases of flow restriction or shut off, the notice shall be delivered at least 72 hours in advance. The General Manager shall provide an opportunity to the customer within that time to dispute the District's determination of non-compliance with this Ordinance or to demonstrate that compliance has been achieved subsequent to the notice. 2. The General Manager may revoke, modify, or extend time for compliance with a notice of intent to surcharge water usage or to restrict or shut off water service if the General Manager is reasonably satisfied that such action will be consistent with the best interests of the District and/or the purposes of this Ordinance. The General Manager shall provide for restoration of restricted or shutoff service upon a determination that appropriate steps to assure compliance with this Ordinance have been taken. The customer shall be responsible, as a precondition of service restoration, to pay the District's normal and usual shutoff and turn-on fees and to comply with such other District Rules and Regulations as apply to customers' service shutoff for nonpayment of water bills. Section 10. Appeal Process. The Board of Directors shall, by separate Resolution, establish an appeal process that affords customers the opportunity to contest findings, correct errors and alleviate unusual and extraordinary circumstances. Section 11. Notification. The District shall notify all customers of the water conservation Level adopted by the Board of Directors, Base Target Amount or percentage of Base Target Amount, and recommended and mandated practices adopted by the District. Section 12. Effective Date. This Ordinance is enacted as an emergency measure and shall become effective on the date of adoption by the Board of Directors. The General Manager is authorized and instructed to cause a copy of the full text of this Ordinance to be published once in a newspaper of general circulation within the District. Section 13. Rescind Conflicting Resolutions. Effective immediately upon adoption of this Ordinance, the voluntary measures adopted in Resolution No. 90-13, and all conflicting Resolutions are hereby rescinded. Section 14. Severability. If any portion of this Ordinance is found to be unconstitutional or invalid, the District hereby declares that it would have enacted the remainder of this Ordinance regardless of the absence of any such invalid portion. Section 15. California Environmental Quality Act. The provisions of this Ordinance are exempt from the provisions of the California Environmental Quality Act as an action to mitigate emergency conditions and as a rate setting measure pursuant to the Public Resources Code Sections 21080(b)(4) and 21080(b)(8), respectively; and in following with the Notice of Exemption filed by the Metropolitan Water District of Southern California on January 8, 1991, as lead agency for the establishment of water delivery conservation programs for water delivered to the Municipal Water District of Orange County. PASSED AND ADOPTED this 28th day of March, 1991 by the following called vote: AYES: M. Roy KNAUFT JR., PAUL ARMSTRONG, STERLING FOX, ARTHUR C. KORN NOYES: 0 AND CARL S CANL I N ABSENT: 0 ABSTAIN: 0 C~a-~2 President, Q' 0 Yorba Linda Water District (SEAL) ATTE A6 Secretary, Yorba Linda Water District Exhibit "A" to Ordinance 91-02 Water Conservation Practices These practices are intended as guidelines for District customers only and are based on the best information available when this Ordinance was adopted. Any Resolution adopting a water conservation level authorized by this Ordinance may modify the practices identified in this list to account for new information or other factors not available or considered when this Ordinance was adopted. Customer Actions: 1. Check monthly for plumbing leaks and any leaks found should be repaired immediately. 2. Irrigate commercial nurseries, golf courses, parks, school yards, traffic medians and other public open space and other non residential landscaped areas no more often than every third day, and only between the hours of 6:00 p.m.and 5:00 a.m. 3. Reduce outside irrigation schedules to the absolute minimum to keep important plants alive. Withhold fertilizer to inhibit new growth. 4. Residential customers with addresses ending with an even number water lawns, landscaping and other turf areas only on even number days of the month and between the hours of 4:00 p.m. and 10:00 a.m. Residential customers with addresses ending with an odd number water lawns, landscape and other turf areas only on odd number days of the month and between the hours of 4:00 p.m. and 10:00 a. m. 5. Adjust sprinklers to avoid "watering" sidewalks and gutters, and lower pressure to avoid creating a wasteful mist. 6. Eliminate washing of sidewalks, walkways, buildings, walls, patios, driveways, parking areas or other paved surfaces, or walls except to eliminate conditions dangerous to public health or safety or when required as surface preparation for the application of architectural coating or painting, and to alleviate immediate fire hazards. 7. Curtail water used to clean, fill or maintain levels in decorative fountains, ponds, lakes or other similar aesthetical structures unless such water use is approved in advance by the District. 8. Curtail water used for the initial filling or refilling of swimming pools, spas or ponds unless such water use is approved in advance by the District. Replacement due to evaporation is permitted. 9. Curtail washing of motor vehicles, trailers, boats and other types of equipment unless a bucket and a hose equipped with a positive shutoff nozzle for quick rinses is used. Washing of vehicles may be done by a commercial car wash that uses recycled water. 10. Display notice that water will be served only upon request at all restaurants, hotels, cafes, cafeterias or other public place where food is sold, served or offered for sale. 11. Water served in restaurants, hotels, cafes, cafeterias or other public places where food is sold or offered for sale only when requested by a customer. 12. Post notice of the water supply shortage in each room of hotels, motels, inns, guest houses, bed and breakfast facilities and short-term commercial lodgings along with an explanation of necessary compliance measures taken by the establishment. 13. Install low-flow shower heads, toilet dams or low-flow toilets, and faucet flow restrictors in each room of hotels, motels, inns, guest houses, bed and breakfasts facilities and short-term commercial lodgings. 14. Hand water plants with a positive shut-off hose nozzle. 15. Place a plastic bottle, bag or dam in all toilets. 16. Use automatic dish and clothes washers for full loads only. 17. Insulate hot water pipes to reduce the waiting time for hot water. Install circulating hot water system or point off use water heater. 18. Turn off the water while brushing teeth, washing hands and/or shaving. 19. Install water saving shower heads and/or flow restrictors. 20. Take shorter showers. Turn off the water when lathering, shampooing, or shaving. Turn the shower back on to rinse. 21. Capture bath/shower warmup water in buckets and use the water to irrigate plants or to flush toilets. 22. Use garbage disposers sparingly. 23. Do not plant any annuals or new plants that will require extra watering. 24. Place mulching material in landscaped areas to decrease soil moisture evaporation. 25. Use a broom to clean outside patios, porches and sidewalks. 26. Cover spas and swimming pools when not in use. If spa or pool will not be used, make the necessary preparations for not refilling the spa or pool while shortage lasts. District Actions: 1. Limit use of water from fire hydrants to fire fighting, approved construction activities or other activities as approved by the District as necessary to maintain the health, safety and welfare of the public. 2. Turn off all construction meters until the condition(s) causing the shortage are abated to the satisfaction of the General Manager. 3. Issue no construction meters for earth work or road construction purposes. 4. Moratorium on new service connections. ITEM NO. 4- AGENDA REPORT Board Meeting Date: August 14, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Cindy Mejia, Management Analyst APPTHEYORBY TIiE BOARD Of DIRECTORS BA INDAWATERDSTRICT AUG 1 4 0 BY klrirs oum Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: Yes Total Budget: $ 140,000 Water Operating Fund 121580 Job No: $ 140,000 Dept: Admin Subject: Fiscal Year 2008/2009 Public Outreach Campaign SUMMARY: California has had one of the driest years on record, with eight of the past ten years meeting drought-level conditions and low storage in the Colorado River system and the California Aqueduct. Coupled with a regulatory law of reducing the amount of import water from northern California by 30% due to the Delta smelt and the high probability of water allocations being imposed by the Metropolitan Water District, the Board of Directors has instructed the Public Information-Technology Committee to develop a Public Information Campaign. The campaign will inform District customers about the upcoming allocation, voluntary and mandatory action levels and possible corresponding rate increases contributed to the regulatory drought, a possible raid on District share of the property taxes and substantial rate increases from SCE. This campaign will be achieved through a number of planned phases, methods and dates. DISCUSSION: Laer Pearce & Associates (Consultant) has prepared a public relations and outreach proposal based on informing District customers about the current water crisis, the possibility of water allocations by Metropolitan Water District and corresponding rate increases. This plan and proposal is geared to run through fiscal year 2008/2009. The consultants proposed plan is divided into two phases with events planned for each month through June of 2009. A copy of the proposal is attached for the Committee's consideration. Phase One: Leading up to a possible rate increase caused by others Phase Two: Building on the Foundation The phases, events and timetable are included in the Consultants proposal. In accordance with the District's purchasing policy, the District shall solicit competitive bids. Due to the anticipated approval by Metropolitan Water District to implement a water allocation Plan in January of 2009 instead of July 2009, staff recommends that the Board of Directors declare this a high priority project and to waive the requirement of soliciting competitive proposals. The Consultant has successfully worked for the District in the past on crisis issues since 1997. They have conducted customer surveys, provided news releases, prepared new s articles and have represented the District during meetings. The consultant has estimated an eleven month program to cost approximately $140,156. All work is done on a time and material basis based on set hourly rates. Each month, the staff and Public Information Committee will monitor and adjust the workload to meet the current issues. This would give the District the greatest flexibility to address the issues as they arise. If a program is not needed, then the Committee can direct staff and no charges will be incurred. The 2008/09 adopted Budget identified funds toward the Public Information Program. Staff is recommending using authorized funds from this program. To fund the difference, staff proposes using unspent salaries and benefits allocated from the vacant Assistant Administrator I position and for the first six months of a budgeted safety officer. The Consultant will make a presentation of their proposal at the Board meeting. Future public information program projects and programs will be identified in the next 2009-10 Budget. PRIOR RELEVANT BOARD ACTION(S): This issue was discussed at the Public Information Technology Committee meeting on July 30, 2008 and again on August 5. The issue of a Public Outreach Campaign has been also discussed with the Board of Directors. STAFF RECOMMENDATION: That the Board of Directors approve the Fiscal Year 2008/2009 Public Outreach Campaign and authorize the President and Secretary to execute a Professional Services Agreement with Laer Pearce & Associates for an amount not to exceed $140,000. COMMITTEE RECOMMENDATION: That the Committee recommends the Board of Directors approve the 2008/2009 Public Outreach Campaign as submitted by Laer Pearce & Associates . • L A E R 9 E A R C E & Associates Consultants in Strategic Communications Communicating Conservation, Rate Increases and Allocation An Outreach Proposal for the Remainder of YL WD's FY 08-09 • August 5, 2008 This fiscal year will bring two difficult challenges to the Yorba Linda Water District: Pressure to increase rates, and the possible implementation of MWD's new water allocations. Both are largely or entirely out of YLWD's control, so it is important that customers understand both the circumstances and how they can contribute to a solution. In a recent YLWD survey, 45% of District customers feel the Governor's drought proclamation means they The following proposal outlines a strategy for YLWD to initiate should be conserving a stronger, more consistent communications program in more water. order to increase customer awareness of issues and build customer trust in the board and its decisions. Strictly for planning purposes, it assumes that rates might be increased in early 2009, and that MWD might implement its new water allocations in mid-2009. The program stresses the following: • The District operates in a fiscally conservative manner and has long been protective stewards of public funds • Local water rates and supply availability are tied to factors largely outside the District's control (energy prices, Met allocations, regulatory drought), but YLWD has taken measures to limit the local impacts of this state-wide issue • Conservation is the answer for both the rate and allocation issues Phase eve: lev tAuqustDl ~/snuely!!i9/ We propose an initial six-month program to communicate the messages above to customers in the following manner, so they can more fully understand the reasons why the board must consider a rate increase: • Three issues-based quarterly customer newsletters (Aug., Oct., Jan.) • Two rounds of presentations by board members and/or staff to cities and large water users on 1.) the status of water situation and the need to conserve, and 2.) an update on rates and district finances • Production of a conservation brochure (for use as a leave-behind for presentations and workshops) • Three bi-monthly op/eds in the Yorba Linda Star • Two bi-monthly native plant columns in the Yorba Linda Star • Regular positive, proactive media relations (approx. five stories, if possible) 22892 Mill Creek Dr., Laguna Hills, CA 92653 ► 949.599.1212 ► www.laer.com Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 2 of 14 • • Two quarterly customer workshops (in conjunction with MWDOC with necessary publicity to ensure participation • Updating Web site with conservation and issues messaging • Five monthly eblasts to interest database on relevant YLWD and water issues • Six conservation-themed bill stuffers • Six monthly issues-based employee newsletters (they're your main ambassadors) • Letter to customers should the board decide to consider a rate increase (timed around hearing) • Production of a PowerPoint for staff, should there be a rate-increase hearing • Initiation of "Yorba Linda Water Stars" business recognition program • Production of conservation-themed table-toppers and coordination of placement with restaurants and local businesses • Production of "YLWD Approved Water-Wise Plant" cards for placement in plants at local nurseries; coordination of placement with YLWD staff. Progressing into 2009, we would continue all the regular communication vehicles established in Phase One (quarterly newsletter, op/eds, plant columns, quarterly workshops, • etc.), and add the following new elements through the end of the fiscal year, reinforcing the District's conservation, rate and allocation messages: • Coordinated participation in the MWDOC/Discovery Science Center student program within service area • VIP tours of District facilities • Promotion and participation in regional Water Awareness Day celebration • Participation in MWDOC regional advertising campaign If allocation measures are announced by MWD, we would include the following additional components in the weeks leading up to a reduction in supplies: • Staff presentations to cities and large water users on the allocation situation • Update Web site with allocation messages • Letter to customers discussing allocation • One op/ed in Yorba Linda Star on allocation • Media relations on allocation issue • Production of door hangers directed at homeowners seen over-using water 0 Note: Please see page 8 for a detailed description of each element above. • • Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 3 of 14 Dedication event Employee newsletter Headquarters media New infrastructure media Board approves plan Revised customer newsletter Employee newsletter Issues messaging YL Star runs profile story VIP conserve presentations Customer workshop Secure 1st op/ed Web update Employee newsletter Conservation brochure Conservation bill stuffer Monthly a-blast Qtly customer newsletter VIP conserve presentations Secure 1St plant column Employee newsletter Conservation bill stuffier Monthly a-blast Positive news release** Potential Rate Increase: Jan. Qtly customer newsletter VIP rate presentations Rate op/ed or plant col. Hearing PPT for staff Rate media relations Conservation bill stuffier Employee newsletter Monthly e-blast Positive news release** Qtly customer newsletter VIP allocation presentations* VIP tours Student presentations Conservation bill stuffier Plant column WAD materials preparation Updated table toppers Employee newsletter Monthly a-blast Positive news release** VIP rate presentations Qtly customer workshop Op/ed Water Stars Program begins Table Toppers distributed Nursery Program begins Employee newsletter Conservation bill stuffer Monthly e-blast Qtly customer workshop Plant column Conservation bill stuffier Employee newsletter Monthly a-blast VIP allocation presentations Qtly customer workshop/tour Allocation Web update* Customer allocation letter* Allocation media relations* Allocation op/ed* Conservation bill stuffer Student presentations Regional WAD Employee newsletter 1001h event** Monthly e-blast VIP rate presentations Customer rate letter Rate, Stars media relations Rate op/ed or plant col. Rate Web update Conservation bill stuffier Employee newsletter Monthly e-blast Positive news release** Op/ed Conservation bill stuffier Employee newsletter Monthly e-blast Positive news release** VIP allocation presentations* Allocation media relations* Door hangers* Plant column Employee newsletter Conservation bill stuffier Monthly a-blast Qtly cust. newsletter prod. Positive news release** Potential Allocation: July 1 • * If necessary, assumes July 1 allocation. Date TBD. MWDOC ad campaign timing TBD. Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 4 of 14 • The chart on the following pages summarizes anticipated fee billings (including vendor expenses) for the campaign outlined above. Should the scope of work change, we will provide a revised estimate at that time. The estimated vendor costs are based upon LP&A's regular vendors. This orooosal and budget is oreliminarv: items may be added. eliminated or refined after further discussion with the District. LP&A bills for its time by the minute to ensure the highest fairness and accuracy; YLWD will only be invoiced for the actual time spent working on the District's behalf. LP&A reserves the right to transfer funds between tasks, as necessary and with YLWD's knowledge, to complete the approved scope of work within the total budget. Met allocation. Revising Summer Revising copy and layout of existing summer quarterly Quarterly newsletter to incorporate additional issues-based content. Newsletter This work will be performed under LP&A's existing contract with YLWD. Quarterly Customer Drafting content and managing design of two quarterly Newsletter customer newsletters, utilizing template created in earlier (October, January) efforts. Does not include printing and distribution. Fees Vendors VIP Conservation Production of a PowerPoint presentation and script on Presentation conservation and water situation for delivery to VIPs and large water users. VIP Rate Increase Production of a PowerPoint presentation and script on Presentation potential rate increase for delivery to VIPs and large water users. Conservation Managing copy, design and printing of a tri-fold conservation Brochure brochure (qty. 3,000 each). Includes creation of new illustrations. Fees Vendors Media Placements Drafting content and securing placement of three op/eds and two native plant columns; establishing program with newspaper. Media Relations Proactively pitching three positive news stories to local press and trades. Quarterly Customer Preparation of a plan to host two customer workshops. Workshops (Sept., Includes minimal time for materials production (TBD) and Nov.) attendance at first customer workshop. Web Site Update Reviewing and updating content on Web site to incorporate 0 8,000 2,000 6,000 4,000 4,500 4,000 6,600 4,200 2,500 2,000 Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 5 of 14 • new key messages. I Blast Email Drafting content and managing layout and distribution of five Program blast emails to outreach database; includes creation of eblast template. Fees 3,500 Vendors 1,750 Bill Stuffers Design of three 8.5"x3.5" bill inserts promoting conservation. Note: Does not include printing. Fees 2,000 Vendors 1,200 Monthly Employee Drafting content and managing layout and distribution of six Newsletter monthly e-newsletters to employees. (Aug.-Jan.) Fees 3,000 Vendors 1,200 Customer Rate Drafting content and managing production of two-page letter Increase Letter discussing rate increase. Note: Does not include printing. Fees 1,500 Vendors 200 Revisions to Rate Revising earlier rate-increase PPT for delivery to YLWD board 750 PPT for Hearing at hearing. Water Star Coordination of outreach program to local businesses; Program includes drafting introductory letter, content and printing of shingle, assisting staff as necessary. (Shingle qty. 1,000) Fees 3,000 Vendors 850 Table-Topper Managing content and production of one table-topper with Program conservation message; assisting staff on coordination and outreach to local businesses. (Qty. 2,000) Fees 2,500 Vendors 1,500 Nursery Program Managing content and production of "YLWD Approved Water- Wise Plant" cards with sticks for placement in plants at local nurseries; includes suction cups for placement in windows; assisting staff on coordination and outreach to local nurseries. (2,500 each of two sizes) Fees 1,500 Vendors 600 Issues Attending select local and regional water meetings, monitoring 8,200 Management industry news and trends during this period, keeping YLWD abreast of issues. Total Phase One Fees $65,250 Total Phase One Vendors $13,300 Total for Phase One $78,550 • Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 6 of 14 • Quarterly Customer Drafting content and managing design of two quarterly Newsletter (April, customer newsletters, utilizing template created in earlier July) efforts. Does not include printing and distribution. Fees 8,000 Vendors 2,000 Monthly Employee Drafting content and managing layout and distribution of five Newsletters (Feb.- monthly e-newsletters to employees. June) Fees 3,000 Vendors 1,000 Blast Email Drafting content and managing layout and distribution of five Program blast emails to database. Fees 3,500 Vendors 1,000 Media Placements Drafting content and securing placement of two op/eds and 5,500 three native plant columns. Media Relations Proactively pitching three positive news stories to local press 4,200 and trades. Quarterly Customer Coordination of MWDOC delivery of two customer workshops; 1,500 Workshops (Feb., includes minimal time for materials production. Does not May) include LP&A attendance at workshops. Student Coordination of MWDOC presentations at schools in YLWD 1,000 Presentations service area; includes minimal agency fees for materials roduction; vendor fees not included. VIP Tours goordination of invitations and content for VIP tours of key 3,500 District facilities; includes attendance at event. Updated Table Revising Phase One table-topper with new message and Toppers design. (Qty. 2,000) Fees 800 Vendors 1,500 Regional WAD Preparation of materials for YLWD promotion and participation 500 Coordination in regional Water Awareness Day celebration. MWDOC Customization of MWDOC conservation ad; placement of eight Advertising quarter-page ads in YL Star over four-month period. Campaign Fees 400 Vendors 4,956 Issues Attending select local and regional water meetings, monitoring 6,700 Management industry news and trends during this period, keeping YLWD abreast of issues. Total Phase Two Fee s $38,600 Total Phase Two Vendors $10,456 Total for Phase Two $49,056 • Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 7 of 14 • ns Upon Allocation VIP Allocation _ Production of a PowerPohll hr(=~cllklho~n mid -;(111I)1 on Presentation allocation for delivery to VIPs and large water users. Web Update Reviewing and updating content on Web site to incorporate 1,000 new allocation messages. Customer Drafting content and managing production of two-page letter Allocation Letter discussing rate increase. Note: Does not include printing. Fees 1,500 Vendors 200 Allocation Media Preparation of a press release on local allocation implications; 4,000 Relations coordination of meeting with reporter to discuss issue; responding to media inquiries. Water-Wise Door Managing content, design and printing of a 7x18" door Hangers hanger with conservation messaging. (qty. 10,000) Fees 1,000 Vendors 3,000 Total Allocation Period Fees j $11,500 Total Allocation Period Vendors $3,200 Total for Allocation Period NEER= $14,700 Meetings and Strategic counsel; attending minimal "account maintenance" 10,000 Consultations meetings and board meetings in person; conference calls and phone meeting attendance; general project support; reporting. This estimate is approximate and is based on the project and services described above. Any vendor charges, such as mailing list acquisition, postage and printing, will be estimated in advance for your approval. Payment for such vendor services will be due upon placement of each order. We bill by the hour in one-minute increments for the highest fairness and accuracy. If final charges on a project are less than estimated, we bill the actual amounts. If it appears that a project has been under-estimated, we work with our clients prior to going over budget to determine the best course of action. • Note: LP&A will require a deposit of $15,000 (10% projected agency fees) to initiate work, which will be applied toward future invoices. Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 8 of 14 • WenElements In DetaNl /SSHOSMOSSSg►iDg.- LP&A would work with the District to draft strategic language outlining its position on the current regional water environment and its rationale for potential rate increases. This language would we used on all future materials LP&A produces for YLWD on these issues. Revise SummeiCustOmeiNewSiOMR,r. The current draft summer customer newsletter does not include information on the drought. We propose removing the existing story on the new administration facility, and replacing it with a story on what the Governor's recent drought proclamation means for YLWD customers and reinforcing the importance of conservation. The administration facility will still be covered in the local press and information will still be available on the District's Web site. All newsletters will be designed to drive readers to the District's Web site for additional information. Octebeis~d/snuaryQaarteiiyCustemeiNewS/alters- These newsletters would be designed in • the same style as the summer edition, each with at least one issues-based story regarding the drought and the need to conserve. The January edition would be distributed prior to a potential rate increase hearing and would include information on the subject. IOCSIY/PCOnserv8tiosPreseststi0ss• With the Governor's recent drought declaration and the city's landscaping issues, it is recommended that LP&A work with YLWD to prepare a PowerPoint presentation on its water supply reliability, its efforts to conserve, and technologies and opportunities available to large and small users to reduce their water use. These presentations would be given by YLWD staff during September and October to study sessions of the city council and planning commissions of the four cities in the service area, other city commissions, large water users, and local service and community groups. The conservation brochure described below would be used as a handout. lees/ Y/PROM111cressePresentstisss• In the two months prior to a potential rate increase (assumed for this document to be during November, December and January), we propose returning to the groups visited for the conservation presentations to provide an update on the rate increase and YLWD's history of fiscal conservatism. LP&A would update the earlier PowerPoint for this purpose and prepare a script of talking points. IiOBSOMMO/INMIEFrO•• One of the District's main outreach goals is to change customer behavior in terms of conservation. A tri-fold brochure on this topic would be produced and placed in the headquarters lobby, handed out at VIP presentations and could be used in • other outreach efforts. Having customized YLWD materials on this subject, rather than utilizing regional or state-wide materials, would allow for more effective, targeted messaging and is another sign to customers that YLWD is proactively taking the lead on this issue. Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 9 of 14 • MedlePINVORents' LP&A would work with the District and the Yorba Linda Star to secure regular placement of the following YLWD-submitted news articles: • 8011AI NVOON.• LP&A would draft bi-monthly op/eds on pertinent issues (drought, rates, conservation, etc.) bylined by Board President John Summerfield. LP&A would also work with the Yorba Linda Star and Placentia News-Times to establish a program for regular placement. The content from these articles could also be used in blast emails (see below). • M811veP1211101uNII&OFINN.• On alternating months from the op/eds, we propose drafting brief columns that feature a selected native, drought-tolerant plant. The story would be bylined by a key YLWD staffer and would include information for where this plant may be purchased. LP&A would also work with the Yorba Linda Star and Placentia News-Times to establish a program for regular placement. The content from these articles could also be used in blast emails (see below). N8909e1811ORSPFOXON.• In addition to the op/ed and native-plant programs, LP&A would take advantage of the District's recently formed relationship with Erin Welch of the Yorba Linda Star to draft and secure placement of five proactive, positive press releases on YLWD accomplishments in local papers and industry trade publications. Stories may include infrastructure construction milestones, awards, board actions and initiation of the table- topper, nursery and Stars programs described below. This regular pitter-patter of good news will improve visibility and trust in the District, and underscore any potential coverage stemming from a possible rate increase. We will also help the District develop guidelines for reactive media relations, helping staff to identify stories that should be responded to, and preferred response approaches. 1AFRI &AFStem8rJOr rSPOPS. Having great materials is a major component of reaching your audiences, but to fully connect with customers and the community requires in-person contact. LP&A would work with YLWD to create a plan to reach out to these groups through customer workshops and facility tours, likely coordinating through MWDOC's workshop program. Materials and staffing would be determined once a plan is in place, but it is anticipated YLWD employees would staff the functions, with LP&A attending only the first event. Workshops would be held in September and November, with topics potentially including native plants, sprinklers and water 101 education. WV#Site Updste.• The District's Web site should be updated to incorporate the new images and messaging, presenting key themes in a hierarchical fashion to more effectively tell the YLWD story. The site should also provide an opportunity for customers to sign up for email news updates, which would grow the District's email database of engaged community members (uses for this list described below). LP&A would update the site a second time to incorporate details of any potential rate increases. NINSIAmei/Piegrem.• Regular communications with target audiences is key to building brand awareness and confidence, so we propose sending periodic (roughly monthly, as warranted) emails to the contact list (see above). These emails would include updates on capital projects, conservation and water-wise gardening tips, and commentary on water issues. Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 10 of 14 • LP&A would help write, design and distribute five blast emails through the end of the fiscal year. These emails would supplement the printed quarterly customer newsletter and also target VIPs, giving YLWD a stronger voice within the industry. It also establishes a mechanism for YLWD to quickly communicate with its customers in the event of an emergency. CONSOMtienBiiiStailers• A series of three conservation-themed bill stuffers would be produced for inclusion in YLWD's monthly customer invoices. These would feature fun, easy- to-read graphics and information with ways customers can conserve, and would rotate use in alternating months. ODleiO#Me/Nhi ,FNN/eyeeMeWSielterMB/18gee/e/It The first two (J u ly and August) month ly employee newsletters will be prepared in our current scope of work. Under this proposal, LP&A would continue managing the content, design and distribution of the five remaining issues through January. Each edition will include issues-based information for employees (the District's main ambassadors) to use if they're approached by customers in the field and in social settings. OSte//!eM818111CreaSeletteZ In the event the Board considers a rate increase, LP&A would draft a letter to all YLWD customers outlining why the District is considering such action and making them aware of a hearing where the issue will be reviewed. LP&A would draft and design the letter; YLWD would print and distribute. Bate incieaselloodsgPewerPeint In the event the Board considers a rate increase, LP&A would work with staff to prepare a PowerPoint for delivery during the Board hearing to clearly outline the reasoning for its request. This would likely be an adaptation of the PowerPoints prepared for earlier VIP presentations. YerbalindaWsterStsrSPregrem.• To highlight the importance of conservation in a visible manner, we propose establishing a program to recognize businesses and large water users that are wisely using supplies. Following a successful water audit, businesses would be awarded a "Yorba Linda Water Star" shingle to hang in their front window, similar to a chamber shingle or a health department rating. This would signal to their ever-greening customers that these businesses share their same values and are worthy of their patronage. Recipients could also be recognized on the Web and potentially in press coverage. This program should be considered in partnership with local chambers. Table-TepperPregram.- Businesses that qualify to be Water Stars, and those we hope to qualify in the future (i.e. all businesses in the service area), would be approached to place conservation-themed cardboard table-toppers (like you see at restaurants) at their cash registers and on tables. These table-toppers would be seen by countless customers and again reinforce our messages and the business community's commitment to sustainability. MWD has a restaurant-oriented table-topper program YLWD could participate in; we propose • a broader program that targets businesses of all types. NurserMOOZam.• In coordination with the proposed native plant columns, which would tell readers where they can purchase these plants, we recommend working with nurseries to Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 11 of 14 • label natives as "YLWD Approved Water-Wise Plants." LP&A would create small and medium-sized cards attached to sticks to be placed in the soil of each plant (with suction cups for attaching to windows), again reinforcing the conservation message. The table- toppers (above) could also be used for point-of-sale signage. LP&A would assist staff in coordinating participation with the local nurseries. /SS118SNONANNON• Being an industry leader requires having a strong voice within the water community and being engaged in local and regional issues. This helps build a positive reputation, provides positioning for advocacy, and allows for nimble defense of the District's brand and strategic goals. As we do for other water district clients, LP&A would work with YLWD to determine which local and regional water meetings YLWD should be attending and determine the appropriate people (YLWD, LP&A, combination) to represent the District. (This can be an increasingly important function as OCWD and MWDOC host policy and communication meetings to determine how to spend member dollars.) LP&A would also serve as YLWD's "policy watchdogs," monitoring city and water industry news and trends, keeping YLWD abreast, and providing strategic counsel and messaging strategies as issues arise. Our presence would give the District access to a team with more than 30 years of water and communications strategy experience to supplement the existing efforts of YLWD staff. L' Aio►~f/,/u/~rQaa~rei/~rCusteme~Mews/elters• These newsletters would be produced in the same style as the earlier newsletters, and would feature at least one issues-based story, with increased focus on the drought, spring and summer water use, and potential Met allocation (depending if and when measures are taken by Met). On~reingMe~th/yEmp/oyeeNews/etters• The monthly employee newsletter would continue in the same format as in Phase One, focusing both on intra-company news and industry issues. On1ofngB/BStEme//PIogIIm.• LP&A would draft and distribute five blast emails to the outreach database, continuing the eblast program proposed in Phase One. On~ein~►MedlaRe/8tie~SandMediaP/aceme~ts•The media relations program established in Phase One would continue in Phase Two, with the placement of two op/eds and three native plant columns. LP&A would also draft press releases and pitch five positive, proactive news stories to the local press and trade publications during this period. Co/1SeN811888111SIMNS.•The three bill stuff ers created in Phase One would continue being included in customer bills through this period. • Qaaite,f/yCustomeiWoiA'Shops• Customer workshops would be held, in conjunction with MWDOC during February and May. LP&A would assist staff in the coordination of these events and help prepare any necessary materials. The May (Water Awareness Month) workshop could be considered for the District's annual customer bus tour of its facilities. Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 12 of 14 • S19118HIPTeSentat/ens• Participating in MWDOC and Discovery Science Center's school program is a cost-effective means to reach the District's student audience. This requires little by way of man hours, but District materials like bookmarks, workbooks, magnets and distribution bags are a good way to supplement MWDOC's general water conservation theme while ensuring a local, YLWD message is also delivered and retained. These supplemental materials can be estimated upon YLWD's direction. Y/PTOU/S.• During the spring, we propose hosting a bus tour of YLWD facilities for local dignitaries and community leaders, which would provide an opportunity to convey our messages to this important audience and show off the progress of the new facilities. This tour would reinforce the messages delivered during the earlier PowerPoint presentations and would provide an important knowledge base as we approach potential allocation (assumed for this document to be in July). 11PONdTab1eTeppers• In April, we would produce a revised table topper with an updated design and message for distribution to the program participants, and work with the chambers to add new businesses. ReR/ena/WBte~Awa~e~essDayParticlpat/en/Framer/en.• YLWD's annual open house during Water Awareness Month (May) is a great way to reach out to customers, but also • participating in OCWD's regional water awareness day celebration would raise the District's visibility and provide an additional opportunity to reach out to parents and families with the conservation message. LP&A would assist YLWD staff with coordination and any necessary materials production. The event would be promoted through the customer newsletter, eblasts and at workshops and school presentations. MWDOCROW0118/AdONAVOgn.• MWDOC is planning a regional conservation-themed print advertising campaign. As reported, these ads would have a space for local retailers to add their logo to customize for placement within their service area. MWDOC would place the ads in regional media (Register, LA Times, etc.) but it would be up to the local retailers to run them in their localized papers, such as the Yorba Linda Star. LP&A would work to customize the MWDOC ad with YLWD's logo and place in the Star every other Thursday and Saturday for a four-month period. MWDOC currently does not have a timetable for launching this ad campaign; YLWD may consider its own unique ad campaign depending on the timing of MWDOC's efforts. MeeftlSSnAFOONS /tMONS• This item in the budget would cover a limited number of "account maintenance" meetings (different from issue-management meetings described above), general account counsel and support, and monthly reporting. This line item is required on all LP&A accounts for the benefit of the client. 0 Laer Pearce & Associates YLWD 2008-09 Communications Proposal Page 13 of 14 • #010. The following measures would be taken in the event Met takes steps to allocate its water resources, and would likely be initiated in the month leading up to a reduction in supplies, if and when that occurs. 1000 /PAIKS1iORPrOSONOONS• Similar to the presentations delivered regarding conservation and the potential rate increase, LP&A would prepare a PowerPoint for staff to deliver to VIP audiences regarding the possibility of Met supply allocations. NORAW018.• LP&A would update the District's Web site with messages on the situation and what it means for customers. COSIONNO/AiiOeMONLOIIO/.• If allocation measures are taken by Met, LP&A would draft a letter to YLWD customers outlining the situation, what the District is doing to increase supplies, and steps they can take to help conserve. A/iocatfeNMedisReiatioNS• Media inquiries will likely arise should allocation measures be • taken and LP&A would assist the District in responding. We would also search for opportunities to promote positive water stories in the press and prepare an op/ed on the subject for placement in the Yorba Linda Star. JVa18rWiS8B## 'NaNj81S. Door hangers could be produced that politely alert home and business owners of wasteful water practices, which could be distributed by YLWD employees in the field. The piece would also include conservation tips to help the user amend their behavior. Terms and Conditions • Contracting - A signed contract must be in place before work is initiated. Invoicing and Reporting - You will be invoiced on or about the first of each month for the services provided in the previous month. Expense and vendor bills may be billed at any time. Detailed reports on our activities on your behalf will accompany the invoicing. Charges will be based on the following rates: Principal Vice President Senior Associate Associate Junior Associate $280* to $350 $190 to $250 $150 to $190 $90 to $140 $50 to $90 *Laer Pearce's standard rate is $280 per hour; his rate for crisis and high-level strategic work is $350 per hour. Laer Pearce & Associates Yl_WD 2008-09 Communications Proposal Page 14 of 14 • Buy-outs and Expenses - Any buy-outs, such as printing, will be billed at our cost plus 17.65 percent (15 percent of the gross). Buy-outs in excess of $200 will be estimated in advance for your approval. Full payment for vendor buyouts is required upon placement of each order. Expenses will be billed in the following manner: Black and white copies at 10 cents each, color copies at $1.00 each, telefax transmissions at $1.00 per page plus phone charges, and other expenses, such as long distance telephone calls, travel and postage, at cost. Because we bill for our time to drive to meetings, we do not bill for mileage. Payment - You will be billed for agency fees at the first of each month for the services and expenses of the previous month. Payment for these invoices is due in 30 days promptly. We require payment of vendor bills in advance or COD. Staffing - In the event that you are dissatisfied with the work of any of our staff members, you may request that they be removed from the account and we will endeavor to fulfill your request. Indemnification - If we are asked to provide assistance with the public dissemination of information (i.e., press releases, brochures and similar materials), they will be submitted to you for approval before distribution. By approving all such materials, you agree to hold us, our employees, agents and representatives harmless, and to defend us at your expense against any claim of damage which may be made as a result of our dissemination of approved materials on your behalf, or as a result of Laer Pearce & Associates working in your behalf. Confidentiality - Laer Pearce & Associates takes a number of steps to assure that your proprietary information is protected within and outside the office. Our staff is taught, and periodically reminded, to protect confidential information. We will sign confidentiality agreements if you require it. Agency - You agree that we serve as your agent only, and are not responsible for charges incurred on your behalf with your approval. As your agent, our books relative to your account are open to you for review at any reasonable time during normal business hours. Prohibited Services - You agree not to request services from Laer Pearce & Associates that are in violation of any U.S. or California law, or that violate the Code of Professional Standards of the Public Relations Society of America. Signature Please indicate your approval by signing and returning one copy. Your signature gives Laer Pearce & Associates the authority to undertake the work described in this estimate and to bill in accordance with the terms stated. Your signature also indicates your acceptance of all costs, terms and provisions of this estimate. In the event that any disagreement regarding this project affects timely payment of our invoices, you agree by your signature below to settlement by arbitration under the rules of the American Arbitration Association, and according to the laws of, and in the forum of, Orange County, California. Name Date Michael Payne, General Manager Yorba Linda Water District 40 ITEM NO. AGENDA REPORT Board Meeting Date: August 14, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Gina Knight, Human Resources Manager Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AUG 1 BYr No Dept: Admin $ 180,000 Job No: 5 Subject: Approval of Professional Services Agreement with Project Partners for Temporary Employment Services. SUMMARY: The purpose of this report is to request the approval of the Board of Directors for an agreement with Project Partners, an engineering firm, to provide engineering consultant services to assist the District in the administration of approved Capital Improvement Projects through fiscal years 2007-2012. DISCUSSION: The District has contracted with Project Partners for similar consulting services in the past and experienced positive results from the professional engineering service provided. Lately the District has experienced a tightening of the labor market resulting in several unsuccessful recruitments for the Sr. Project Engineer positions. The Human Resources Department is recommending the Sr. Project Engineer salary be increased by 20%, as well as changing the job title to Sr. Project Manager and enhancing the job requirements. Once approved staff will advertise the vacancy with the new salary and title. Staff is anticipating the recruitment and hiring process to take between three (3) to four (4) months to complete. During this period, staff recommends hiring a temporary employee to administer and oversee the District's Capital Improvement Program until the vacant position is filled. Staff recommends entering into an agreement with Project Partners based on past experience using the services of this engineering firm and the highly qualified professional and technical engineering support staff available to the District. Additionally, Project Partners is offering a 12% discount on professional engineering services, resulting in greater savings to the District. STAFF RECOMMENDATION: That the Board of Directors authorize the General Manger to execute a Professional Services Agreement with Project Partners, subject to approval as to form by General Counsel, for a fee not to exceed $180,000 to provide engineering and administrative services for the District's Capital Improvement Projects for fiscal years 2007-2012. COMMITTEE RECOMMENDATION This item was presented to the Personnel-Risk Management Committee on August 11, 2008. PROFESSIONAL SERVICES AGREEMENT BETWEEN THE YORBA LINDA WATER DISTRICT AND PROJECT PARTNERS PROJECT/SITE: 1717 East Miraloma Avenue, Placentia, CA 92870 JOB: Consulting Services - Senior Contract Water Engineer/Project Manager DATE: Starting August 4, 2008 THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into on , 20_, by and between the YORBA LINDA WATER DISTRICT, a local public agency, created and operating under authority of Division 12 of the California Water Code ("District"), and PROJECT PARTNERS ("Consultant") (collectively referred to herein as the "Parties"). RECITALS WHEREAS, District is engaged in the administration of the approved Capital Improvement Projects for Fiscal Years 2007-2012 ("Projects") attached as a portion of Exhibit "A", and is further engaged in the task of identifying, prioritizing and planning for new projects, improvements and replacements of the public water and wastewater infrastructure under its jurisdiction (collectively referred to herein as the "CIP Program" or "Program"); and WHEREAS, District requires a professional consultant with the requisite knowledge, skill, ability and expertise to provide the necessary services for District during all phases of the CIP Program administration to which the specialized services of Consultant are appropriate; and WHEREAS, Consultant represents to District that it is fully qualified and available to perform the services for and as requested by District; and NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties agree as follows: AGREEMENT 1.0. SCOPE OF WORK. The services to be provided by Consultant ("Work") are called out in the Scope of Work attached as Exhibit "A" and incorporated herein by reference. All such Work shall be performed in accordance with the highest professional standards and in such a prompt and continuous fashion as not to impede or delay the overall completion of the Projects and other defined Program objectives. 1.1. Project Manager. Consultant acknowledges that continuous and effective communication between District, Consultant, and other consultants (as appropriate) is necessary to the successful completion of the Projects and Program objectives. Consultant may also be required to furnish copies of its work product and 1 of 7 communications to others as requested by District. Consultant's primary contact with District shall be through District's Project Manager specified on Exhibit "A." District's primary contact with Consultant shall be through the Consultant's Representative, designated on Consultant's Cost Proposal attached as Exhibit "B," and incorporated herein by reference. When requested by District, Consultant's Representative shall attend Project meetings and will undertake, as a part of its professional responsibility under this Agreement, to coordinate its activities with all appropriate individuals and consultants. 1.2. Use of Designs and Drawings. All work product of Consultant, whether created solely by Consultant or in cooperation with others, is prepared specifically and expressly for District and all right, title, and interest therein shall be owned by District. District shall make available to Consultant such information, documents, graphs, studies, etc., which District possesses or has access to, which are relevant to Consultant's Work pursuant to this Agreement. 1.3. Review. Consultant shall furnish District with reasonable opportunities from time to time to ascertain whether the Work of Consultant is being performed in accordance with this Agreement. All Work done and materials furnished shall be subject to final review and approval by District. District's interim review and approval of Consultant's work product shall not relieve Consultant of its obligations to fully perform this Agreement. 1.4. Commencement of Work. The Consultant shall begin Work on August 4, 2008. 1.5. Time Is Of The Essence. Consultant shall perform all Work with due diligence as time is of the essence in the performance of this Agreement. Time limits applicable for the perfornance of Consultant's Work are established in Exhibit "A." 2.0 COMPENSATION. As compensation for performance of the Work specified under the Scope of Work (Exhibit "A"), District shall pay Consultant an amount not to exceed that contained in Consultant's Cost Proposal (Exhibit "B"). Payment will be made at the rates set forth in Consultant's Fee Schedule, which is attached as Exhibit "C" and incorporated herein by reference. Costs or expenses not designated or identified in the Fee Schedule shall not be reimbursable unless otherwise provided in this Agreement. 2.1. Invoicing. Consultant shall submit an invoice within ten (10) days after the end of each month during the term of this Agreement describing the Work performed for which payment is requested. District shall review and approve all invoices prior to payment. District shall pay approved invoices within thirty (30) days of receipt. Consultant agrees to submit additional documentation to support the invoice if requested. If District does not approve an invoice, District shall send a notice to Consultant setting forth the reason(s) the invoice was not approved. Consultant may re-invoice District to cure the defects identified by District. The revised invoice will be treated as a new submittal. District's determinations regarding verification of Consultant's performance, accrued reimbursable expenses, if any, and percentage of completion shall be binding and conclusive. Consultant's time records, invoices, receipts and other documentation supporting the invoices shall be available for review by District upon reasonable notice and shall be retained by Consultant for three (3) years after completion of the Project. 2.2. Extra Services. Before performing any services outside the scope of this Agreement ("Extra Services"), Consultant shall submit a written request for approval of 2of7 such Extra Services and receive written approval from District. District shall have no responsibility to compensate Consultant for any Extra Services provided by Consultant without such prior written approval. 3.0 TERMINATION. District may terminate this Agreement at any time upon ten (10) days written notice to Consultant. Should District exercise the right to terminate this Agreement, District shall pay Consultant for any Work satisfactorily completed prior to the date of termination, based upon Consultant's Fee Schedule. Consultant may terminate this Agreement upon ten (10) days written notice to District in the event of substantial failure by District to perform in accordance with the terms hereof through no fault of Consultant; or in the event District fails to pay Consultant in accordance with the terms in Section 2.0; or if Consultant's Work hereunder is suspended for a period of time greater than ninety (90) days through no fault of Consultant. 3.1. Withholding Payment. In the event District has reasonable grounds to believe Consultant will be materially unable to perform the Work under this Agreement, or if District becomes aware of a potential claim against Consultant or District arising out of Consultant's negligence, intentional act or breach of any provision of this Agreement, including a potential claim against Consultant by District, then District may, to the fullest extent allowed by law, withhold payment of any amount payable to Consultant that District determines is related to such inability to complete the Work, negligence, intentional act, or breach. 4.0. SAFETY. Consultant shall conduct and maintain the Work so as to avoid injury or damage to any person or property. Consultant shall at all times exercise all necessary safety precautions appropriate to the nature of the Work and the conditions under which the Work is to be performed, and be in compliance with all applicable federal, state and local statutory and regulatory requirements including State of California, Department of Industrial Relations (Cal/OSHA) regulations. Consultant is responsible for the safety of all Consultant personnel at all times during performance of its Work, including while on District property. 5.0 INDEMNIFICATION. 5.1. When the law establishes a professional standard of care for the Consultant's services, to the fullest extent permitted by law, Consultant will defend, indemnify and hold harmless District, its directors, officers, employees, and authorized volunteers from and against all claims and demands of all persons that arise out of, pertain to, or relate to the Consultant's negligence, recklessness, or willful misconduct in the performance (or actual or alleged non-performance) of the Work under this agreement. Consultant shall defend itself against any and all liabilities, claims, losses, damages, and costs arising out of or alleged to arise out of Consultant's performance or non-performance of the Work hereunder, and shall not tender such claims to District nor to its directors, officers, employees, or authorized volunteers, for defense or indemnity. 5.2. Other than in the performance of professional services, to the fullest extent permitted by law, Consultant will defend, indemnify and hold harmless District, its directors, officers, employees and authorized volunteers from and against all claims and demands of all persons arising out the performance of the Work (including the furnishing of materials), including but not limited to claims by the Consultant, Consultant's 3 of 7 employees and any subconsultants for damages to persons or property, except for damages resulting from the willful misconduct or active negligence of District, its directors, officers, employees, or authorized volunteers. 5.3. Consultant shall defend, at Consultant's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against District or any of its directors, officers, employees, or authorized volunteers, with legal counsel reasonably acceptable to District. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against District or any of its directors, officers, employees, or authorized volunteers, in any and all such aforesaid suits, actions, or other legal proceedings for which Consultant is obligated to defend, indemnify and hold harmless District, its directors, officers, employees and authorized volunteers under this Agreement. 5.4. Consultant shall reimburse District or its directors, officers, employees, and authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by District or its directors, officers, employees, or authorized volunteers. 6.0 INSURANCE REOUIREMENTS. Prior to execution of this Agreement, and at any time thereafter on request, Consultant shall provide executed certificates of insurance and policy endorsements acceptable to District evidencing the required coverage and limits for each insurance policy. Each insurance policy shall be primary insurance as respects District, its affiliated organizations and its and their respective officers, directors, trustees, employees, agents, consultants, attorneys, successors and assigns (collectively, the "Covered Parties") for all liability arising out of the activities performed by or on behalf of Consultant. Any insurance, pool coverage, or self-insurance maintained by Covered Parties shall be excess of Consultant's insurance and shall not contribute to it. Each insurance policy shall provide, or be endorsed to provide, a waiver of rights of subrogation against Covered Parties. Each insurance policy shall provide, or be endorsed to provide, that coverage shall not be cancelled except after thirty (30) days prior written notice by U.S. Mail (ten (10) days for non-payment of premium) has been given to District. Unless otherwise approved by District, each insurance provider shall be authorized to do business in California and have an A.M. Best rating (or equivalent) of not less than "A:VII." Consultant shall provide and maintain at all times during the performance of this Agreement the following insurance: (1) Commercial General Liability ("CGL") insurance; (2) Automobile Liability insurance; (3) Workers' Compensation and Employer's Liability insurance; and (4) Errors and Omissions ("E&O") liability insurance. 6.1. Commercial General Liability. Each CGL policy shall identify Covered Parties as additional insured, or be endorsed to identify Covered Parties as additional insured using ISO policy form "CG 00 01" with an edition date prior to 2004, or the exact equivalent. Coverage for additional insured shall not be limited to vicarious liability. Defense costs must be paid in addition to limits. Each CGL policy shall have liability coverage limits of at least $1,000,000 per occurrence for bodily injury, personal injury and property damage, and either at least (a) $2,000,000 aggregate total bodily injury, personal injury and property damage applied separately to the Project; or at least (b) $5,000,000 general aggregate limit for all operations. CGL insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all 4of7 coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 6.2. Automobile Liability. Each Automobile Liability policy shall require coverage for "any auto" and shall have limits of at least $1,000,000 for bodily injury and property damage, each accident, and shall use ISO policy form "CA 00 O1," including owned, non-owned and hired autos, or the exact equivalent. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the CGL policy described above. Automobile Liability insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 6.3. Workers' Compensation/Employer's Liability. Consultant shall cover or insure the existence of coverage under the applicable laws relating to Workers' Compensation insurance, all of their employees employed directly by them or through subconsultants at all times in carrying out the Work contemplated under this Agreement, in accordance with the "Workers' Compensation and Insurance Act" of the California Labor Code and any amendatory Acts. Consultant shall provide Employer's Liability insurance with limits of at least $1,000,000 each accident, $1,000,000 disease policy limit, and $1,000,000 disease each employee. By Consultant's signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code, which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that code, and that Consultant will comply with such provisions before commencing Work under this Agreement. Upon the request of District, subconsultants must provide certificates of insurance evidencing such coverage. 6.4. Errors and Omissions. Each E&O policy shall have limits of at least $1,000,000 per claim and $1,000,000 aggregate. Architects' and Engineers' coverage is to be endorsed to include contractual liability. E&O insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 7.0. INDEPENDENT CONTRACTOR. The Parties agree that the relationship between District and Consultant is that of an independent contractor and Consultant shall not, in any way, be considered to be an employee or agent of District. Consultant shall not represent or otherwise hold out itself or any of its directors, officers, partners, employees, or agents to be an agent or employee of District. District will not be legally or financially responsible for any damage or loss that may be sustained by Consultant because of any act, error, or omission of Consultant or any other consultant, nor shall Consultant make any claim against District arising out of any such act, error, or omission. 7.1. Taxes and Benefits. Consultant shall be solely responsible for the payment of all federal, state and local income tax, social security tax, Workers' Compensation insurance, state disability insurance, and any other taxes or insurance Consultant, as an independent contractor, is responsible for paying under federal, state or local law. Consultant is not eligible to receive Workers' Compensation, medical, indemnity or 5 of 7 retirement benefits through District, including but not limited to enrollment in Ca1PERS. Consultant is not eligible to receive overtime, vacation or sick pay. 7.2. Permits and Licenses. Consultant shall procure and maintain all permits, and licenses and other government-required certification necessary for the performance of its Work, all at the sole cost of Consultant. None of the items referenced in this section shall be reimbursable to Consultant under the Agreement. 7.3. Methods. Consultant shall have the sole and absolute discretion in determining the methods, details and means of performing the Work required by District. Consultant shall furnish, at its own expense, all labor, materials, equipment, tools and transportation necessary for the successful completion of the Work to be performed under this Agreement. District shall not have any right to direct the methods, details and means of the Work; however, Consultant must receive prior written approval from District before assigning or changing any assignment of Consultant's project manager or key personnel and before using any subconsultants or subconsultant agreements for services or materials under this Agreement and any work authorizations. 8.0. NOTICES. Any notice may be served upon either Party by delivering it in person, or by depositing it in a U.S. Mail Deposit Box with the postage thereon fully prepaid, and addressed to the Party at the address set forth below: District: Michael A. Payne, General Manager Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 Consultant: Kimo Look, P.E., Principal Project Partners 18031 Von Karman, Suite 340 Irvine, CA 92612 Tel: (949) 852-9300 Fax: (949) 852-9322 Any notice given hereunder shall be deemed effective in the case of personal delivery, upon receipt thereof, or, in the case of mailing, at the moment of deposit in the course of transmission with the United States Postal Service. 9.0 ASSIGNMENT. Neither Consultant nor District may assign or transfer this Agreement, or any part thereof, without the prior written consent of the other Party, which shall not be unreasonably withheld. 10.0 ATTORNEY'S FEES. In the event of any action arising out of, or in connection with, this Agreement, or the Work to be performed hereunder, the prevailing Party shall be entitled to have and recover, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation, its attorney's fees. 11.0. BINDING ARBITRATION. Within thirty (30) days after service of a civil action on either Party arising out of, or in connection with, this Agreement, either Party may elect to submit the action to binding arbitration before the Judicial Arbitration and Mediation Service 6of7 ("JAMS"), located in Orange County. The Parties agree that upon an election to arbitrate, any civil action filed will be stayed until arbitration proceedings have concluded. Upon submission of the matter to JAMS, the submitting Party shall obtain from JAMS a list of three (3) randomly selected arbitrators and serve said list upon the other Party. In the event that there are more than two parties to the action, the number of arbitrators randomly selected and included in the list shall be increased by two for each additional party involved. Upon service of the randomly selected list of arbitrators, each party shall have twenty (20) days to eliminate two arbitrators from the list and return it to JAMS, with the selected arbitrator being the remaining name on the list. Should more than one name remain on the list, JAMS will randomly select the arbitrator from the names remaining on the list. Arbitration shall be scheduled for hearing on the merits no later than six (6) months after the date the arbitrator is selected. All parties shall be permitted to conduct discovery as provided by the current rules of the California Code of Civil Procedure. All costs of JAMS or of the arbitrator for Work shall be divided equally among the Parties, unless otherwise ordered by the arbitrator. In an arbitration to resolve a dispute under this provision, the arbitrator's award shall be supported by law and substantial evidence. 12.0 WARRANTY. Consultant warrants that the Work to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily provided by an experienced and competent professional rendering the same or similar services. 13.0 FORCE MAJEURE. Upon written notice by the owing Party, the respective duties and obligations of the Parties hereunder (except District's obligation to pay Consultant such sums as may become due from time to time for Work rendered by it) shall be suspended while and so long as performance thereof is prevented or impeded by strikes, disturbances, riots, fire, governmental action, war acts, acts of God, or any other cause similar or dissimilar to the foregoing which are beyond the reasonable control of the Party from whom the affected performance was due. 14.0 ENTIRE AGREEMENT. This Agreement, and the attached Exhibits, represent the entire and integrated agreement between District and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both District and Consultant. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be entered into as of the day and year written above. District: Yorba Linda Water District Consultant: Project Partners, Inc. By: By: Michael A. Payne, General Manager Attachments: Exhibit A: Scope of Work Exhibit B: Cost Proposal for Work Exhibit C: Fee Schedule i 7 ook , Pr~cipal 7 of 7 01 011, Pr°aiect Part ner•s August 6, 2008 Ken Vecchiarelli Assistant General Manager Yorba Linda Water District P.O. Box 309 Yorba Linda, CA 92686-0309 Re: Senior Contract Water Engineer / P roject Manager Dear Ken: It is with great pleasure that we are submitting this letter proposal and appreciate the opportunity to work with you and your staff once again. We understand that the Yorba Linda Water District (YLWD) has an immediate requirement for a senior engineer to assist the District in the administration of approved Capital Improvement Projects spanning fiscal years 2007- 2012. The objective of this proposal is to offer YLWD a senior project manager resource that would: • Provide the manpower and technical expertise to help the District implement selected 5 Year Capital Projects Program projects. This will include facilitating the design of approved projects, managing the design of projects under consultant design, and developing bid packages and managing the construction of already designed projects. • Assist in developing an infrastructure replacement program that would ensure the long term viability of water and wastewater systems. • Afford YLWD the ability to proactively evaluate our senior water engineer's performance and ability to work effectively with your organizations without long term commitments • Add senior water engineering expertise without substantial expense of hiring permanent staff or paying hefty consultant fees. Proposed Contract Project Manager Project Partners would like to offer YLWD one of our Senior Project Managers, Mr. Steve Conklin (see attached resume). Mr. Conklin is a Professional Engineer with over 35 years of experience in all phases of water systems engineering. He has over 20 years in the private sector as a senior engineering m anager and worked on a wide variety of water, wastewater, and reclaimed water projects. He is a proven technical professional with extensive project management experience. In addition, Mr. Conklin has over 15 years as a senior manager in the Orange County Water District organization; a well respected public sector agency. There he held positions from Senior Engineer to Engineering M anager, to Director of Engineering to Assistant General Manager. He has extensive knowledge of the County's groundwater issues and proven expertise in managing complex water projects. Exceptional Billing Rate Advantage: Project Partners works hard to maintain very cost effective billing rates for our clients. Our rates allow public sector agencies realistic options to cost effectively maintain contract staff for extended periods of time. Due to our long working relationship with YLWD, we are offering a one time reduced billing rate for Mr. Conklin. Mr. Conklin is classified as a Senior Project Manager III. Our standard bill ing rate for that classification is $112.50. (as listed in the attached billing rate sheet). However, Project Partners is offering a special rate reduction of 12%, thus bringing our bill ing rate to: Reduced Hourly Billing Rate of $99.00. This is an exceptional value as other engineering consulting firms have billed Mr. Conklin for over $200 per hour. This rate is even lower, (when adjusted for inflation), than the rate charged for the previous contract engineer Project Partners assigned to YLWD; Mr. Ray Hahn. Based upon full-time utilization of the proposed Project Partners engineering staff, an estimated amount of $180,000 would allow contract staff service through the end of the current YLWD fiscal year (June 30"', 2009). Conditions Project Partners is proud to offer outstanding candidates to our clients. We believe that YLWD understands that the staff provided by Project Partners is the result of substantial recruiting expense; interviewing, screening, and supervision of its personnel. Therefore, in consideration for this service, we request that YLWD not obstruct the employment relationship between Project Partners and its employees directly or indirectly by extending any employment offers for a period of not less than 6 months after the initial contract date. Once again, Project Partners is truly excited about you have any questions or require any additional cl me directly at 949-852-9300 x 103 Sincerely, Kimo Look Project Partners /40 ?project 6 01~q-tners Project Partners' Billing Rate Standard Billing Rate for 2008 Engineering Title Engineering Entry Level Engineer Assistant Engineer Associate Engineer Staff Engineer Project Management Project Engineer Associate Project Manager Project Manager Senior Project Manager I Senior Project Manager II Senior Project Manager III Inspectors Associate Inspector Inspector Senior Inspector Engineering Tech/CAD/GIS Entry Level Engineering Tech Engineering Tech Senior Engineering Tech Hourly Bill Rates $65.25 $69.50 $75.75 $81.00 $88.00 $93.50 $98.00 $103.25 $108.00 $112.50 $59.25 $73.00 $90.75 $52.00 $61.50 $69.25 Approved Discount $ 99.00 ITEM NO. 6 AGENDA REPORT Board Meeting Date: August 14, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Same as above APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ' AUG 1 2 8 BY Reviewed by General Counsel: Yes Budgeted: N/A Total Budget: $ Funding Source: N/A CEQA Account No: Job No: Compliance: N/A Estimated Costs: Dept: Subject: Consent Calendar Agenda items approved at the June 26, 2008 and July 24, 2008 Board of Directors meeting. SUMMARY: DISCUSSION: Staff will deliver a staff report during the week of August 11 but prior to the Board meeting. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approved the Consent Calendar Agenda Items on June 26, 2008 and July 24, 2008 respectively. STAFF RECOMMENDATION: Staffs recommendation to the Board of Directors will be included in the staff report. ITEM NO. AGENDA REPORT Board Meeting Date: August 14, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Same Reviewed by General Counsel: Yes Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: AOfPPROVED BY THE BOARD Of DIRECTORS 6 AUG 1 2 BY N/A Total Budget: N/A N/A Job No: N/A Dept: Admin Subject: Consent Calendar Agenda items approved at the June 26, 2008 and July 24, 2008 Board of Directors meeting. SUMMARY: After the July 24th Board of Directors meeting had adjourned, Vice President Mills notified staff that Director Beverage did not abstain from voting on a warrant listed under the Consent Calendar payable to Metcalf & Eddy in the amount of $1,125.86. After discussing the issue with Director Beverage, he admits he inadvertently and unintentionally failed to abstain from voting on the warrant. Director Beverage has previously and publicly disclosed a conflict of interest with Metcalf & Eddy. DISCUSSION: After researching the matter staff has discovered the following. On the consent calendar of the July 24, Board of Directors meeting agenda, there were three items approved by one motion. Item No. 2 involved payment of bills, refunds and wire transfers. On the list of warrants was check no. 49377 made payable to Metcalf & Eddy, Inc. in the amount of $1,125.86. This warrant was a partial payment for a civil engineering design work on a project initiated by staff in accordance with the Districts purchasing policies. The project is for a preliminary study of a shallow well project in conjunction with the pending annexation of lands into OCWD. This project is identified in the 2007/09 Capital Budget. A summary of the July 24, Board Meeting Agenda and Minutes are as follows: CONSENT CALENDAR (Items 1 through 3) 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, the staff, or the public requests further consideration. 1. Minutes of the Regular Board of Directors meeting held July 10, 2008. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $2,015,265.61. 3. Progress Payment No. 14 for the Lakeview Reservoir Construction. Recommendation: That the Board of Directors approve Progress Payment No. 14 in net amount of $440,398.30 to SSC Construction, Inc. for construction of the Lakeview Reservoir Project, Job No. 100704. Approved Minutes: On a motion by Director Beverage, seconded by Director Collett, the Board of Directors voted 5- 0 to approve the Consent Calendar with Director Collett abstaining from Check No. 49388 of item 2. Staff also discovered on the June 26, Board of Directors meeting, a warrant made payable to Metcalf & Eddy was on the warrant list. The warrant list was listed under Agenda Item No. 2 - payment of bills, refunds, and wire transfers in the amount of $772,680.68. A summary of the June 26, Board Meeting Agenda and Minutes are as follows: CONSENT CALENDAR (Items 1 through 3) 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, the staff, or the public requests further consideration. Minutes of the Regular Board of Directors meeting held June 12, 2008. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $772,680.68. 3. Terms and Conditions for Water and Sewer Service with Ms. Kate Gulewich. Recommendation: Approve Terms and Conditions for Water and Sewer Service with Ms. Kate Gulewich for 5112 Eureka Avenue, Yorba Linda, Job No. 200808. Approved Minutes: On a motion by Director Beverage, seconded by Director Armstrong, the Board of Directors voted 3-0 to approve the Consent Calendar. Vice President Mills and Director Collett were absent. Director Beverage admitted that he unintentionally failed to abstain from voting on this warrant as well. There are no other prior warrants to the consultant. To correct and set the record straight, staff recommends the Board of Directors ratify payment of bills, refunds, and wire transfers for the two agenda items and that Director Beverage should abstain from voting on this issue. PRIOR RELEVANT BOARD ACTION(S): Whenever a Board member has a conflict of interest that Board Member usually abstains from voting and discussing an item. There have been a couple of instances in the past where a Board Member inadvertently failed to notice an issue on the Board Agenda. When that happened, a follow-up review was initiated and the oversight corrected. STAFF RECOMMENDATION: That the Board of Directors ratifies the prior action on the following items and that Director Beverage abstains from voting on the two warrants: June 26, 2008 Board of Directors Agenda Consent Calendar - Agenda Item No. 2 Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $772,680.68. July 24, 2008 Board of Directors Agenda - Consent Calendar - Agenda Item No. 2 Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $2,015,265.61. COMMITTEE RECOMMENDATION: The Executive - Administrative - Organizational Committee will discuss this issue at their meeting on August 13, 2008. The committee will provide a recommendation at the Board meeting. APPROVED BY THE BOARD OF DIRECTORS OFT HEYORBA LINDA WATER DISTRICT ITEM NO. AUG 1 $ MINUTES OF THE BY...t YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING July 24, 2008 The July 24, 2008 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 8:30 a.m. The meeting was held at the District's offices at 1717 E. Miraloma Avenue, Placentia, CA. DIRECTORS PRESENT AT ROLL CALL John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Ric Collett Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Asst. G.M. Lee Cory, Operations Manager Pat Grady, IT Director Diane Cyganik, Finance Director Gina Knight, HR Manager Amelia Cloonan, Personnel Tech INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Brett Barbre, MWDOC Director SPECIAL RECOGNITION None CONSENT CALENDAR (Items 1 throuah On a motion by Director Beverage, seconc voted 5-0 to approve the Consent Calende on Check No. 49388 of Item 2. 1. 2. 3. Director Collett, the Board of Directors Director Collett abstaining from voting Directors meeting held July 10, 2008. the minutes as presented. , and wire transfers. Ratify and authorize disbursements in the amount of Progress Payment No. 14 for the Lakeview Reservoir Construction. Recommendation: That the Board of Directors approve Progress No. 14 in net amount of $440,398.30 to SSC Construction, construction of the Lakeview Reservoir Project, Job No. 100704. Payment Inc. for ACTION CALENDAR 4. Sewer Maintenance Charges for Locke Ranch and Areas Outside the District. Finance Director Cyganik presented the report stating there are no changes to the rates. '7-1,% V20 On a motion by Vice President Mills, seconded by Director Collett, the Board of Directors on a Roll Call voted 5-0 to adopt Resolution No. 08-09 electing to have the current Sewer Maintenance Charges collected on the Fiscal Year 2008-09 Tax Roll and Rescinding Resolution 07-14. DISCUSSION ITEMS 5. None REPORTS. INFORMATION ITEMS AND COMMENTS 6. a. President's Report President Summerfield mentioned that the word " branding of the District's press release and sever Directors voted not to use the word "Independe General Manager Payne stated he would follow staff prepared the press release. b. Directors Reports Director Beverage stated that at a previous Boai suggestion that the Board should wait until minub actually in the Board agenda to report on the mee a problem. There was discussion about hov committee minutes: hand out both a committee a Board meetings or put a synopsis in the Board would look at possible solutions, take these to Organizational Committee and then for discussio President Summerfield asked that committee available at the next Board meeting. dependent" appeared in the I other places. The Board of it" in the District's branding. up with Laer Pearce whose meeting he brought up the > of committee meetings are igs. He finds this to now be and when to present the mda and the minutes at the genda. It was agreed staff ie Executive-Administrative- and decision by the Board. agendas and minutes be Director Collett reported that he and President Summerfield attended MWDOC's Water Policy Forum. The topic presented was Southern California's Water Future: The Realities We Face in an Era of Drought, Regulatory Cutbacks and Potential Water Supply Allocations. Brian Thomas and Jeffrey Kightlinger of Metropolitan Water District of Southern California were the Director Armstrong was contacted by the Fullerton Arboretum with the request for a possible sponsorship of another part of the arboretum. The District is also being asked by the Veteran's Memorial group for a free construction meter and free water for the construction. c. General Managers Report Report on Administration Building Dedication, July 16. General Manager Payne stated that with a few glitches the dedication went off very well. There was a lot of representation from other agencies and a lot of positive feedback was received in the form of thank you letters and notes. Over 100 people attended. Director Beverage said there were some communication gaps wherein the information did not pass from the PIT Committee on through to the person who should have received it. -2- The Board members did not receive invitations to the dedication. The Board members need to be informed about issues that occur so that they can discuss them in an informed manner out in the public venue. General Manager Payne commented District staff is working with MWDOC for grants for Prop 50. The deadline was this week. Seven to eight other agencies put in requests for grants. The results will be announced at the end of July. The District submitted an individual grant request for smart controllers was submitted. Assistant General Manager Vecchiarelli made a presentation to the Sunrise Rotary Club about developments at the District and on-going projects. Members of the South Coast Water District Board and its General Manager visited the District to view the new Administration building. The Jurupa Community Services District will also visit. The Carver Guides are available in the Board Closed Session Room for the use of the Directors. General Manager Payne reported a meeting is scheduled for next week with the City of Yorba Linda to discuss landscaping water. General Manager Payne met with Troy Butslaff, City of Placentia City Administrator, about the Golden State issue, landscaping and the sharing of services. General Manager Payne reported about the Hidden Hills area. Letters went out to homeowners to let them know the District is working on the problem affecting about a dozen homes. Questions were asked about information transmittal to Board members regarding day-to-day issues. The Board members wish to be aware of issues on which District customers might approach them for information. General Manager Payne agreed. Operations Manager Cory reported on an incident below the Plumosa office, which impacted the Yorba Linda Library and the elder care facility in addition to the neighborhood. The situation occurred when equipment blew out valves dating from the 1930's. Assistant General Manager Vecchiarelli stated the District crews reacted quickly and well. Temporary above grade lines were set up. Bottled water was distributed to those affected. Several calls were received thanking staff for their courtesy and quick response. COMMITTEE REPORTS 7.a. Executive-Administrative-Organizational Committee (Summerf ield/Mills) Alternate: Collett 1) Minutes of meeting held July 15. General Manager Payne reported on the updated information provided to the state for the 2005 Urban Water Management Plan. The Committee discussed the Form 700 filings. General Manager Payne reviewed a letter -3- received from the OC Grand Jury. A grant application on which MWDOC is taking the lead was discussed. Reports were given on the prevailing wage rates, legislative issues and grant applications. Vice President Mills suggested the District should start with water conservation now so time is not lost. He thought a newspaper article talking about conservation would be appropriate. Director Beverage spoke about the PIT Committee discussions. Assistant General Manager Vecchiarelli said some of the foundation has already been laid. He, Management Analyst Mejia and Ben Boyce of Laer Pearce met with Erin Welch of the OC Register. She was given a tour and an outline of where the District is headed. Assistant General Manager Vecchiarelli stated we are starting to develop good working relationships. MWDOC Director Barbre mentioned has a new blog, the OC Watchdog. I 2) The meeting scheduled for Augu b. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills 1) Minutes of meeting held July 8. May 2008 Financial Statements w Evans & Company LLP gave a Investment Report for month endir report o parti is some di: Manager P Sforza at the OC Register good to contact her. be held on August 13 at 4:00 p.m. reviewed. Representatives from Diehl resentation regarding the audit. The May 31, 2008 was discussed. A status ivestments as of May 31, 2008 was 3sion about funds in which the District ie stated the District is still within its risk uled for August 12, 4:00 p.m. it Committee Summerfield 1) Minutes of meeting held July 14. There was discussion about retiree health coverage benefits for Board members. AB 1771 prevents elected officials, who were elected post January 1, 1995 from receiving paid health insurance benefits as retirees, unless they pay for the benefits themselves. ACWA does not allow Directors elected post 1995 to pay for this option. ACWA's 2008 workers compensation program renewal effective July 1, 2008 was presented. The status of the District's recruitments and personnel on Administrative Leave was also presented. 2) Meeting scheduled for August 11, 4:00 p.m. -4- d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1) Minutes of the meeting held July 3. Status reports on the Preventative Maintenance Program and the Meter Replacement and Radio Read Retrofit Project were presented. A report was given on the Monthly Water Production and Purchased Imports through May 2008. Assistant General Manager Vecchiarelli reported on his attendance at the monthly MWDOC Managers meeting. A report was presented on progress of the Highland Reservoir Replacement Project and proposals for two new groundwater production well sites. Change Order No. 3 with SSC Construction Inc. for the Lakeview Reservoir Project was discussed. 2) Meeting scheduled for August 7, 4:00 p.m. Gina Knight and Brett Barbre left the meetin e. Public Information-Techno (Collett/Beverage) Alternate: 1) Minutes of meeting held July 17 will appear in 14. Director Collett commented that almost meeting had already been covered in the Boar to discuss the next step beyond the voluntary customers. A discussion was held. Director planning a campaign for conservation, which August with advertisements. Meeting scheduled for July 30, 4:00 p.m. 3) Meeting scheduled for August 5, 4:00 p.m. Ad Hoc Summerfield 1) Meeting scheduled for August 26, 4:00 p.m. g. City of Placentia Ad Hoc Committee (Beverage/Payne) the Board agenda for August everything discussed at the d meeting. The Board needs 10% water conservation by Beverage said the District is should start the middle of 1) Minutes of meeting held June 16. Governor Schwarzenegger's Press Release regarding the drought was discussed. The 10% voluntary reduction in water use adopted by the District's Board and water conservation applications available were also discussed. An update was presented on the OCWD Annexation of District lands. District projects, City of Placentia issues and projects and the YLWD Administration building dedication were also discussed. -5- 2) Meeting to be scheduled. INTERGOVERNMENTAL MEETINGS 8. a. MWDOC Board, July 16 No one attended. The District Administration building dedication was held on the 16tH b. OCWD Board, July 16 No one attended. c. Yorba Linda Planning Commission, July 23 General Manager Payne attended. There is a tennis court that may conflict with one of the District's easements. The city is updating their housing element, a state requirement. The Plumosa property is now included. A report will go to the Executive-Administrative-Organizational Committee. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after July 24, 2008. Agenda is available in the District office prior to meeting. _Auaust 2008 Public Information Committee, August 5,4:00 p.m. I Collett/Beverage Yorba Linda City Council, August 5, 6:30 p.m. I Mills MWDOC/MWD Joint Workshop, August 6, 7:30 a.m. I Staff OCWD Board, August 6, 5:00 p.m. I Staff Planning-Engineering-Operations Committee, Aug 7, 4:00 p.m. Mills/Armstrong Personnel-Risk Management Committee, August 11, 4:00 p.m. Armstrong/Collett Finance-Accounting Committee, August 12, 4:00 p.m. Beverage/Summerfield Yorba Linda Planning `Commission, August 13, 7:00 p.m. Summerfield District Board Meeting, August 14, 8:30 a.m. Executive-Admin-Organizational Committee, Aug 19, 4:00 p.m. Summerfield/Mills Yorba Linda City Council, August 19, 6:30 p.m. I Armstrong MWDOC Board, August 20, 7:30 a.m. Staff OCWD Board, August 20, 5:00 p.m. I Staff MWDOC Ad Hoc Committee, August 26, 4:00 p.m. I Mills/Collett Yorba Linda Planning Commission, August 27, 7:00 p.m. I Collett District Board Meeting, August 28, 8:30 a.m. Sentember 2008 rPublic Information Committee, Sept 2, 4:00 p.m. I Collett/Beverage Yorba Linda City Council, Sept 2, 6:30 p.m. I Mills MWDOC/MWD Joint Workshop, Sept 3, 7:30 a.m. I Staff OCWD Board, Sept 3, 5:00 p.m. I Staff Planning-Engineering-Operations Committee, Sept 4, 4:00 p.m. I Mills/Armstrong Personnel-Risk Management Committee, Sept 8, 4:00 p.m. (Summerfield)/Collett Finance-Accounting Committee, Sept 9, 4:00 p.m. I Beverage/Summerfield Yorba Linda Planning Commission, Sept 10, 7:00 p.m. I Collett District Board Meeting, Sept 11, 8:30 a.m. -6- Executive-Admin-Organizational Committee, Sept 16, 4:00 p.m Yorba Linda City Council, Sept 16, 6:30 p.m. MWDOC Board, Sept 17, 7:30 a.m. OCWD Board, Sept 17, 5:00 p.m. Yorba Linda Planning Commission, Sept 24, 7:00 p.m. District Board Meeting, Sept 25, 8:30 a.m. CONFERENCES AND SEMINARS 9. Authorize attendance of Directors and such staff approved by the General Manager to attend the seminars. a. None A recess was declared at 10:11 a.m. The Session at 10:18 a.m. All Directors were prE Payne and Assistant General Manager Veccl Summerfield/Mills Collett Staff Staff Summerfield of the District as conferences and of Directors reconvened in Closed Also present were General Manager ADJOURN TO CLOSED SESSION 10. Public Employee Performance Evaluation General Manager. CLOSED SESSION REPORT There were no reportable item The Board of Directors Director Beverage, secoi adjourn at 11:08 a.m. t August 14, 2008, at 8:30 Code Section 54957] Title: session at 11:08 a.m. On a motion by nmerfield, the Board of Directors voted to of the Board of Directors scheduled for oma Avenue, Placentia 92870. -7- ITEM NO. AGENDA REPORT Board Meeting Date: August 14, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: N"00 BY THE BOARO OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT V y~ 1 8 Yes Total Budget: N/A All Funds N/A Job No: N/A $3,982,426.06 Dept: Bus Subject: Payments of Bills, Refunds, and Wire transfers SUMMARY: Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors' approval. DISCUSSION: The major items and wire transfers on this disbursement list are as follows: A wire of $74,594.10 to ACWA-HBA for August 2008 health premium; a wire of $244.08 to ACWA-EAP for August 2008 EAP; a wire of $1,460,489.30 to OCWD for January through June 2008 Replenishment Assessment; a wire of $27,623.00 to ACWA/JPIA for April through June 2008 workers' compensation premium; a wire of $492,669.97 to MWDOC for June 2008 water purchase; a check of $303,214.64 to Schuler Engineering for Job 0309 progress payment; a check of $380,942.29 to Shapell Industries for Job 0421 progress payment; and a check $55,891.77 to Villa Ford for vehicles' purchase. The balance of $956,253.50 is routine invoices. In summary, the check register total is $3,751,922.65; payroll No. 15 total is $230,503.41; and, the disbursements of this agenda report are $3,982,426.06. A s ummary of the checks is as follows: Pavables: Void Check Check No. 49399 Manual Checks Check Nos. 49425 - 49434 Void Checks Check Nos. 49435 - 49650 Computer Checks Check Nos. 49651 - 49798 Pavroll #15: Computer Checks Check Nos. 4043 - 4048 Manual Checks Check Nos. 4049 - 4057 Void Checks Check Nos. 4058 - 4059 The disbursement total for the current period is 3,982,426.06, distributed as follows: Water $3,973,260.41 Sewer $ 8,999.64 ID #1 $ 0.00 ID #2 $ 166.01 TOTAL $3,982,426.06 PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $3,982,426.06. August 14, 2008 CHECK NUMBERS 49399 AND 49435 TO 49650 $ 0.00 49651 TO 49798 $ 1,696,302.20 WIRES: W-72508 ACWA-HBA $ 74,594.10 W-72508A ACWA-EAP $ 244.08 W-73008 OCWD $ 1,460,489.30 W-73108 ACWA/JPIA $ 27,623.00 W-81408 MWDOC $ 492.669.97 $ 2,055,620.45 TOTAL OF CHECKS AND WIRES: $ 3,751,922.65 PAYROLL NO. 15: CHECK NUMBERS: 4043 TO 4059 $ 230,503.41 TOTAL: $ 3,982,426.06 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF AUGUST 14, 2008 TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS AS FOLLOWS: WATER $3,973,260.41 SEWER $ ID#1 $ 0.00 ID#2 $ TOTAL: $3,982,426.06 8,999.64 166.01 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 07-25-08 THRU 08-14-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 49656 08-14-08 08-14-08 4 IMPRINT INC 5,484.03 49657 08-14-08 08-14-08 AAA BACKFLOW & METER TESTING 380.00 49658 08-14-08 08-14-08 ABIGAIL ABBOTT STAFFING SVC 7,914.25 49659 08-14-08 08-14-08 ACTION WHOLESALE PRODUCTS, INC 624.78 W72508 07-25-08 07-25-08 ACWA-HBA 74,594.10 72508A 07-25-08 07-25-08 ACWA-HBA 244.08 49660 08-14-08 08-14-08 ACWA/JPIA 699.80 W73108 07-31-08 07-31-08 ACWA/JPIA 27,623.00 49661 08-14-08 08-14-08 ALTERNATIVE HOSE INC. 60.88 49662 08-14-08 08-14-08 ANSWER ONE COMMUNICATIONS 512.46 49663 08-14-08 08-14-08 AQUA-METRIC SALES CO. 30,595.94 49664 08-14-08 08-14-08 ARCHIE'S TOWING 375.00 49665 08-14-08 08-14-08 ARROWHEAD 26.98 49666 08-14-08 08-14-08 ARTISTIC MAINTENANCE, INC 3,495.60 49667 08-14-08 08-14-08 ASSOCIATED LABORATORIES 3,269.90 49668 08-14-08 08-14-08 AT&T 45.10 49669 08-14-08 08-14-08 AT&T 836.08 49670 08-14-08 08-14-08 AT&T/MCI 6,379.24 49671 08-14-08 08-14-08 ATWOOD SALES 683.55 49672 08-14-08 08-14-08 AUTO GLASS TECH 373.90 49673 08-14-08 08-14-08 AW DIRECT INC. 481.96 49674 08-14-08 08-14-08 AWWA - CA-NV SECTION 125.00 49675 08-14-08 08-14-08 B & S GRAPHICS, INC. 396.18 49676 08-14-08 08-14-08 BEAR STATE PUMP 275.38 49677 08-14-08 08-14-08 BELL PIPE & SUPPLY 427.76 49678 08-14-08 08-14-08 BENNER METALS 16.16 49679 08-14-08 08-14-08 CADET UNIFORM SERVICE 3,835.25 49680 08-14-08 08-14-08 CALOLYMPIC SAFETY CO. 826.23 49681 08-14-08 08-14-08 CARMENITA TRUCK CENTER, INC. 17.82 49682 08-14-08 08-14-08 CDW-G GOVERNMENT, INC 1,632.08 49683 08-14-08 08-14-08 CERIDIAN BENEFITS SERVICES 100.00 49684 08-14-08 08-14-08 CITY OF ANAHEIM 5,852.93 49685 08-14-08 08-14-08 CITY OF ANAHEIM 11,441.66 49686 08-14-08 08-14-08 CITY OF PLACENTIA 4,440.23 49687 08-14-08 08-14-08 CLA-VAL CO. 4,789.04 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 07-25-08 THRU 08-14-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 49688 08-14-08 08-14-08 CLINICAL LAB. OF SAN BERN. 3,125.00 49689 08-14-08 08-14-08 COBRA SOLUTIONS, INC 395.00 49690 08-14-08 08-14-08 COUNTY OF ORANGE 482.00 49691 08-14-08 08-14-08 CULVER COMPANY 442.30 49692 08-14-08 08-14-08 CYNTHIA MEDIA 175.78 49693 08-14-08 08-14-08 DANA MCDERMOTT 66.00 49694 08-14-08 08-14-08 DAPPER TIRE CO. INC. 2,439.67 49695 08-14-08 08-14-08 DATALOK ORANGE COUNTY 257.05 49696 08-14-08 08-14-08 DAYSPRING PEN SHOP 6,265.63 49697 08-14-08 08-14-08 DELL MARKETING L.P. 6,894.53 49698 08-14-08 08-14-08 DELTA DENTAL - PMI 350.21 49651 08-14-08 08-14-08 DENYSE KELLISON 38.78 49699 08-14-08 08-14-08 DIGITAL INSTALLERS INC 640.00 49700 08-14-08 08-14-08 EMPLOYEE RELATIONS, INC. 23.00 49434 07-25-08 07-25-08 ENERGY ENVIRONMENTAL SOLN, INC 2,200.00 49701 08-14-08 08-14-08 ENGINE SAVER REBORING 520.00 49702 08-14-08 08-14-08 FAIRWAY FORD SALES, INC. 298.66 49703 08-14-08 08-14-08 FEDERAL EXPRESS 57.20 49704 08-14-08 08-14-08 FILTER RECYCLING SERVICES, INC 97.75 49705 08-14-08 08-14-08 FRY'S ELECTRONICS 1,576.94 49706 08-14-08 08-14-08 GEORGE T. HALL CO. 299.60 49707 08-14-08 08-14-08 GRIFFITH AIR TOOL, INC. 535.02 49708 08-14-08 08-14-08 H. TOJI COMPANY 405.00 49709 08-14-08 08-14-08 HARBOR RESOURCES INC. 48,728.71 49710 08-14-08 08-14-08 HOME DEPOT CREDIT SERVICES 157.84 49711 08-14-08 08-14-08 HSBC BUSINESS SOLUTIONS 490.69 49712 08-14-08 08-14-08 INFOSEND 10,083.93 49713 08-14-08 08-14-08 INTERIORS BY JANI-TRESS 5,249.00 49714 08-14-08 08-14-08 J & S CONSTRUCTION 4,023.75 49715 08-14-08 08-14-08 JOHN LENT 105.00 49716 08-14-08 08-14-08 JORGE LOPEZ 120.00 49717 08-14-08 08-14-08 KB DESIGN 3,810.85 49718 08-14-08 08-14-08 KING CIVIL ENGINEERING CORP 1,768.00 49719 08-14-08 08-14-08 KNOLL, INC. 1,902.75 49720 08-14-08 08-14-08 KONICA MINOLTA BUSINESS 1,207.00 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 07-25-08 THRU 08-14-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 49721 08-14-08 08-14-08 LAYNE CHRISTENSEN COMPANY 29,050.73 49722 08-14-08 08-14-08 LEIGHTON CONSULTING, INC. 1,145.00 49723 08-14-08 08-14-08 LIEBERT CASSIDY WHITMORE 3,024.45 49425 07-25-08 07-25-08 LYNN NUZMAN 157.03 49724 08-14-08 08-14-08 MACIAS GINI & O'CONNELL LLP 362.50 49652 08-14-08 08-14-08 MBK HOMES 17.43 49725 08-14-08 08-14-08 MC FADDEN-DALE HARDWARE 1,891.41 49726 08-14-08 08-14-08 MC MASTER-CARR SUPPLY CO. 84.65 49727 08-14-08 08-14-08 MCR TECHNOLOGIES INC. 1,250.95 49728 08-14-08 08-14-08 METCALF & EDDY, INC. 3,575.07 49653 08-14-08 08-14-08 MICHAEL CONTER 71.70 49729 08-14-08 08-14-08 MINUTEMAN PRESS 3,122.64 49730 08-14-08 08-14-08 MISAC - MUNICIPAL IS ASSOC CA 240.00 49731 08-14-08 08-14-08 MORTON SALT 2,253.29 49732 08-14-08 08-14-08 MTL OPEN SYSTEM 13,046.82 49733 08-14-08 08-14-08 MUDGE FASTENERS, INC 2,186.94 49734 08-14-08 08-14-08 MUNICIPAL WATER DISTRICT 110.00 W81408 08-14-08 08-14-08 MUNICIPAL WATER DISTRICT 492,669.97 49735 08-14-08 08-14-08 MURCAL, INC. 1,554.98 49736 08-14-08 08-14-08 NAPOLEON DE LOS REYES 60.00 49433 07-25-08 07-25-08 NEXTEL OF CALIFORNIA 1,841.19 49737 08-14-08 08-14-08 NEXTEL OF CALIFORNIA 2,050.20 49738 08-14-08 08-14-08 NICKEY PETROLEUM CO 13,750.05 49739 08-14-08 08-14-08 OFFICE SOLUTIONS 1,343.33 49740 08-14-08 08-14-08 ORANGE COUNTY - I W M D 933.56 49741 08-14-08 08-14-08 ORANGE COUNTY - SANITATION 606.61 49742 08-14-08 08-14-08 ORANGE COUNTY REGISTER 318.00 W73008 07-30-08 07-30-08 ORANGE COUNTY WATER DISTRICT 1,460,489.30 49743 08-14-08 08-14-08 PACIFIC COMMUNICATIONS TECH 5,809.75 49744 08-14-08 08-14-08 PACIFIC PARTS & CONTROLS, INC. 1,333.99 49745 08-14-08 08-14-08 PC WORLD 19.97 49746 08-14-08 08-14-08 PETE'S PARTS & ACCESSORIES 6,029.58 49747 08-14-08 08-14-08 PLACENTIA DISPOSAL 437.80 49748 08-14-08 08-14-08 PRAXAIR DISTRIBUTION 197.90 49749 08-14-08 08-14-08 PSOMAS & ASSOCIATES 2,901.50 L Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 07-25-08 THRU 08-14-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 49750 08-14-08 08-14-08 QUALITY FIRST WOODWORKS INC 4,555.00 49751 08-14-08 08-14-08 QUINN POWER SYSTEMS ASSOCIATES 4,593.48 49752 08-14-08 08-14-08 R J SERVICES, INC 10,602.76 49753 08-14-08 08-14-08 RBF CONSULTING 380.00 49754 08-14-08 08-14-08 RCL & ASSOCIATES, INC. 748.88 49755 08-14-08 08-14-08 RICARDO HIPOLITO JR 113.30 49654 08-14-08 08-14-08 RICHFIELD COMMUNITY CHURCH 854.02 49756 08-14-08 08-14-08 RKI ENGINEERING, LLC 21,840.00 49757 08-14-08 08-14-08 ROSEMOUNT INC 1,419.03 49758 08-14-08 08-14-08 SC FUELS 4,098.45 49759 08-14-08 08-14-08 SCHULER ENGINEERING CORP. 303,214.64 49655 08-14-08 08-14-08 SCOTT BERTRAN 15.92 49760 08-14-08 08-14-08 SCOTT W. MOULTON 5,142.50 49761 08-14-08 08-14-08 SHAPELL INDUSTRIES INC. 380,942.29 49762 08-14-08 08-14-08 SHRED-IT LOS ANGELES 68.60 49763 08-14-08 08-14-08 SIGNATURE PARTY RENTALS 2,115.02 49426 07-25-08 07-25-08 SOUTH COAST AQMD 505.35 49427 07-25-08 07-25-08 SOUTH COAST AQMD 505.35 49428 07-25-08 07-25-08 SOUTH COAST AQMD 505.35 49429 07-25-08 07-25-08 SOUTH COAST AQMD 505.35 49430 07-25-08 07-25-08 SOUTH COAST AQMD 505.35 49431 07-25-08 07-25-08 SOUTH COAST AQMD 505.35 49432 07-25-08 07-25-08 SOUTH COAST AQMD 505.35 49764 08-14-08 08-14-08 SOUTH COAST AQMD 1,276.45 49399 07-24-08 07-25-08 SOUTHERN CALIF EDISON CO. 108.86 49765 08-14-08 08-14-08 SOUTHERN CALIF EDISON CO. 178.37 49766 08-14-08 08-14-08 SOUTHERN CALIF EDISON CO. 79,671.03 49767 08-14-08 08-14-08 SOUTHERN CALIF GAS CO. 36,619.46 49768 08-14-08 08-14-08 SOUTHWEST MATERIAL 387.59 49769 08-14-08 08-14-08 SOUTHWEST NETWORKS INC. 16,036.39 49770 08-14-08 08-14-08 SOUTHWEST SERVICES 3,917.00 49771 08-14-08 08-14-08 SOUTHWEST VALVE 3,932.88 49772 08-14-08 08-14-08 SPINITAR 40,723.04 49773 08-14-08 08-14-08 SSC CONSTRUCTION, INC 357,936.98 49774 08-14-08 08-14-08 STACY BAVOL/PETTY CASH 333.73 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 07-25-08 THRU 08-14-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 49775 08-14-08 08-14-08 STAPLES BUSINESS ADVANTAGE 1,203.24 49776 08-14-08 08-14-08 STEVE CLAYTON 90.00 49777 08-14-08 08-14-08 SUNRISE MEDICAL GROUP 896.00 49778 08-14-08 08-14-08 SYSTEMS SOURCE INC 4,138.04 49779 08-14-08 08-14-08 TDC GROUP INC 2,000.00 49780 08-14-08 08-14-08 TESTOUT CORPORATION 1,958.73 49781 08-14-08 08-14-08 TIME WARNER CABLE 187.38 49782 08-14-08 08-14-08 UNDERGROUND SERVICE ALERT 162.00 49783 08-14-08 08-14-08 UNITED INDUSTRIES 2,061.48 49784 08-14-08 08-14-08 UNITED RENTALS - FULLERTON 812.57 49785 08-14-08 08-14-08 VECTOR RESOURCES INC. 2,239.07 49786 08-14-08 08-14-08 VERIZON WIRELESS 423.27 49787 08-14-08 08-14-08 VICTOR BUICK GMC 604.85 49788 08-14-08 08-14-08 VILLA FORD 55,891.77 49789 08-14-08 08-14-08 VILLAGE NURSERIES 29.74 49790 08-14-08 08-14-08 VISION SERVICE PLAN 1,452.08 49791 08-14-08 08-14-08 WEIR CANYON CHEVROLET 336.32 49792 08-14-08 08-14-08 WELLS SUPPLY CO 28,515.28 49793 08-14-08 08-14-08 WILSON & HAMPTON PAINTING CONT 3,147.00 49794 08-14-08 08-14-08 XEROX CORPORATION 1,105.46 49795 08-14-08 08-14-08 YORBA LINDA AUTO PARTS 603.89 49796 08-14-08 08-14-08 YORBA LINDA HARDWARE 84.12 49797 08-14-08 08-14-08 ZANE WOLLER 78.50 49798 08-14-08 08-14-08 ZEP MANUFACTURING 491.46 3,751,922.65 [405] 164 items listed out of 25023 items. ITEM NO. / AGENDA REPORT Board Meeting Date: August 14, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Ken Vecchiarelli, Assistant General Manager Leon de los Reyes, Water Quality Engineer APPROVEO BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AUG Reviewed by General Counsel: No Budgeted: Yes Total Budget: $ 11.2M Funding Source: Water Revenue Bond CEQA Account No: 102-2700 Job No: 200309 Compliance: Mitigated Neg. Dec. Estimated Costs: $ 11.2M Dept: Eng Subject: Progress Payment No. 3 for the Highland Reservoir Replacement Project SUMMARY: The Highland Reservoir is a critical element of the District's water supply chain. The existing structure has surpassed its useful life and has become a potential water quality and maintenance liability. Increasing the size and reliability of the Highland Reservoir, as recommended in the District's 2005 Domestic Water System Master Plan, improves system integrity, service reliability and secures flexibility in the District's service by further optimizing groundwater production and transmission capabilities. The Board of Directors awarded a contract to Schuler Engineering for construction of the Highland Reservoir Replacement Project on April 10, 2008 and approved a project construction budget of $11.2M on May 15, 2008. DISCUSSION: In accordance with the contract documents, Schuler Engineering Corporation submitted a request for Progress Payment No. 3 for the period ending July 31, 2008. This progress pay request is 30% mobilization including bonds, insurance certificates, project related office expenses, preparation of submittals and related tasks, 20% electrical, telemetery, instrumentation and controls related to the temporary tanks and the new reservoir (material costs), 15% site clearing and storm water pollution prevention plan related tasks, 14% yard piping (material costs), 14% earthwork, 6% pothole and survey of utilities tasks, 0.6% demolition and 0.4% shoring related costs. The status of the construction contract with Schuler Engineering is as follows: • The current contract is $9,049,346 and 730 calendar days starting June 2, 2008. • If approved, Progress Payment No. 3 is $336,905.16 (3.7% of the total contract amount), less 10% retention of $33,690.52 for a net payment of $303,214.64. • If approved, total progress payments to date including retentions are $665,962.70 (7.4% of the contract amount) • As of July 31, 2008, 60 calendar days were used (8.2% of the contract time). Staff and Carollo Engineers, the District's construction management consultant, reviewed the progress payment request and recommend payment. In accordance with provisions established in the contract documents, the retention payments will be deposited to an escrow account. Schuler Engineering Corporation switched its retention escrow account bank from Vineyard Bank to Citizens Business Bank. As previously advised by legal counsel, finance department staff investigated the current financial integrity of Citizens Business Bank, and find it satisfactory and acceptable. A copy of Progress Payment No. 3 is attached for your information. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors awarded a construction contract to Schuler Engineering on April 10, 2008 in the amount of $9,049,346 for construction of the project. On May 15, 2008, the Board approved execution of a Professional Service Agreement with Carollo Engineers in the amount of $605,856 for engineering support services, construction management and backup inspection services; a Professional Service Agreement with Leighton Consulting Engineers in the amount of $86,200 for geotechnical services, soils, concrete and materials testing; a Professional Service Agreement with BonTerra Consulting in the amount of $22,251 for environmental compliance services; and approved the proposed construction budget in the amount of $11,200,000 for construction of the Highland Reservoir Replacement Project. The Board has approved two progress payments to date, the most recent of which was approved on July 10, 2008. STAFF RECOMMENDATION: Staff recommends the Board of Directors approve Progress Payment No. 3 in the net amount of $303,214.64 to Schuler Engineering Corporation for construction of the Highland Reservoir Replacement Project, Job No. 200309. YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Highland Reservoir PROGRESS PAY REQUEST NO. 3 LOCATION Yorba Linda PROJECT NO. J- PAGE 1 OF 1 PAGES 200309 CONTRACTOR Schuler Engineering ORIGINAL CONTRACT AMOUNT: AUTHORIZED CHANGE ORDERS REVISED CONTRACT AMOUNT PROGRESS PAY ESTIMATE FOR PERIOD VALUE OF WORK COMPLETED CHANGE ORDER WORK COMPLETED TOTAL VALUE OF WORK COMPLETED LESS RETENTION 10% LESS OTHER DEDUCTIONS AMOUNT DUE THIS ESTIMATE LESS AMOUNT PREVIOUSLY PAID BALANCE DUE THIS ESTIMATE DATE July 31,2008 $ 9,049,346 5 - $ 9,049,346 July 1,2008 PREVIOUS $ 329,057.54 $ $ - I $ $ 329,057.54 I $ NOTICE TO PROCEED June 2,2008 COMPLETION TIME 730 CALENDAR DAYS APPROVED TIME EXTENSIONS CALENDAR DAYS TOTAL CONTRACT TIME 730 CALENDAR DAYS TIME EXPENDED TO DATE 60 CALENDAR DAYS TIME REMAINING 670 CALENDAR DAYS REQUESTED BY: /f:G C l~ CHOLER G KIEERI G-CONTRACTOR APPROVED BY: /G/~ L / 4a CAROLLO-OWNER'S- REPRESENTATIVE APPROVED BY: 4~E' TO July 31,2008 THIS MONTH TO DATE 336,905.16 $ 665,962.70 - Is 336,905.16 $ 665,962.70 $ 66,596.27 $ 599,366.43 $ 296,151.79 $ 303,214.64 DATE: DATE: Z O O S DATE: /J ` e e f ITEM NO. /0 AGENDA REPORT APPROVED BY THE BOARD OFOIRECTORS OF THE YORBA LINDA WATER DISTRICT Board Meeting Date: August 14, 2008 . AUG 1 To: Board of Directors BY_ From: Michael A. Payne, General Manager Staff Contact: Ken Vecchiarelli, Assistant General Manager Joe Polimino, Project Engineer Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 11.5M Funding Source: District and Developer Funds CEQA Account No: 101-2700 Job No: 200704 Compliance: Mitigated Neg. Dec. Estimated Costs: $ 11.5M Dept: Eng Subject: Progress Payment No. 15 for the Lakeview Reservoir Construction SUMMARY: On January 25, 2007, the District Board of Directors authorized the execution of an agreement with SSC Construction, Inc. (SSC) for construction of an 8-million gallon underground concrete reservoir, piping and appurtenances. The project also includes demolition of the existing Bastanchury Booster Pump Station and Reservoir (two steel storage tanks). The site is located north of Bastanchury Road off the new Lakeview Avenue extension, north of the Hover Development and south of Vista Del Verde's Village 4. When completed, the project will increase operational, fire and emergency storage capacity, retain better water quality through improved circulation and improve reliability of the water system. DISCUSSION: In accordance with the contract documents, SSC submitted a request for Progress Payment No. 15, in the amount of $357,936.98 for completed work through July 31, 2008. During this period, the contractor continued interior reservoir concrete finishing, installation of mechanical appurtenances, and formwork of the top hatch openings. General backfill and rough grading on the site continues. Work on the inlet and outlet vaults is also progressing. The status of the construction contract with SSC Construction, Inc. is as follows: • The current contract is $10,697,781.37 and 574 calendar days starting June 18, 2007. • If approved, Progress Payment No. 15 is $397,707.75 (3.7% of the total contract amount), less 10% retention of $39,770.77 for a net payment of $357,936.98. • Total payments to date including retention are $9,089,488.52 (85.0% of the total contract amount). • As of July 31, 2008, 410 calendar days were used (71.4% of the contract time). Staff and Butier, the District's construction manager for the project, have reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 15 is attached for your reference. PRIOR RELEVANT BOARD ACTION(S): On January 25, 2007, the District Board of Directors approved and awarded a construction contract with SSC Construction, Inc. in the amount of $10,489,500 for construction of an 8 million gallon underground concrete reservoir, piping and appurtenances, and demolition of the existing Bastanchury Booster Pump Station and Reservoir. On April 10, 2008, the District Board of Directors approved Change Order No. 1 increasing the total contract amount to $10,639,500 and total contract calendar days to 547. On June 30, 2008, staff approved Change Order No. 2 in the net amount of $2,887.92 increasing the total contract to $10,642,387.92. On July 10, 2008, the Board of Directors approved Change Order No. 3 in the amount of $55,393.45 and an additional 17 calendar days to be added to the contract. The Board has approved fourteen progress payments to date for this project, the most recent of which was approved on July 24, 2008. STAFF RECOMMENDATION: Approve Progress Payment No. 15 in the net amount of $357,936.98 to SSC Construction, Inc. for construction of the Lakeview Reservoir Project, Job No. 200704. YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Lakeview Reservoir Project PROGRESS PAY REQUEST NO. 15 LOCATION Yorba Linda, CA PROJECT NO. 200704 PAGE 1 OF 1 PAGES CONTRACTOR SSC Construction, Inc. DATE 7131108 ORIGINAL CONTRACT AMOUNT: $ 10,489,500.00 AUTHORIZED CHANGE ORDERS: 208,281.37 REVISED CONTRACT AMOUNT: 10,697,781.37 PROGRESS PAY ESTIMATE FOR PERIOD July 1, 2008 TO July 31, 2008 PREVIOUS THIS MONTH TO DATE VALUE OF WORK COMPLETED $ 8,483,499.40 I $ ~ $ 8,881,207.15 397,707.75 CHANGE ORDER WORK COMPLETED $ 208,281.37 1 $ ` 1 $ 208,281.37 - TOTAL VALUE OF WORK COMPLETED $ 8.691,780.771$ I 397,707-751 $ 9,089.488.52 LESS RETENTION 10% $ 908,948.85 LESS OTHER DEDUCTIONS $ - NET EARNED TO DATE $ 8,180,539.67 LESS AMOUNT PREVIOUSLY PAID $ 7,822,802.69 BALANCE DUE THIS ESTIMATE $ 357,936.98 NOTICE TO PROCEED June 18, 2007 COMPLETION TIME 487 CALENDAR DAYS APPROVED TIME EXTENSIONS 87 CALENDAR DAYS TOTAL CONTRACT TIME 574 CALENDAR DAYS TIME EXPENDED TO DATE 410 CALENDAR DAYS TIME REMAINING 164 CALENDAR DAYS REQUESTED BY: Q--~ , DATE: Brent Browgt, Asst, n ro ler, S$ Construction Inc. APPROVED BY: ~ l C 2 4t DATE: ' 4 v a ineering nt, onstru ion Manager, Butler E n g isenh gi / / PROVED BY: ~i~# DATE: Kenneth Assistant General Manager, YLWD ~wWwelli, ITEM NO. ff AGENDA REPORT APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT Board Meeting Date: August 14, 2008 AUG 1 08 To: Board of Directors BY.j From: Michael A. Payne, General Manager Staff Contact: Kenneth R. Vecchiarelli, Assistant General Manager Ariel Bacani, Engineering Technician Reviewed by General Counsel: N/A Budgeted: N/A Dept: Eng Funding Source: Developer Funded Account No: 1-2600 Job No: 200810 CEQA Compliance: N/A Estimated Costs: N/A Subject: Terms and Conditions for Water Service with Flavours, Inc. SUMMARY: Flavours, Inc. is planning to renovate an existing office & warehouse building into a pilot plant and production line facility. The property is located at 24855 Corbit Place within Pressure Zone 3 of the District's Improvement District 2. An exhibit depicting the project location is attached for your reference. DISCUSSION: Flavours, Inc. is in the business of creating, marketing and processing proprietary flavors for food services and other industries. The company is proposing to move a research and development pilot plant and production line into Yorba Linda that will require an estimated water demand of 62,500 gallons per day or 70 acre feet of water per year. The peak processing demand is expected to occur during the rinse cycle between batch productions at a flow rate of 150 gallons per minute. The District has an existing 8-inch fire service line tied into the 10-inch water main in Corbit Place. The property's domestic line is currently served from a 2-inch water service. The applicant is requesting to install a new 4-inch water service to supply its facility. The new construction includes the 4-inch water service with a 3-inch meter, a reduced pressure principle backflow device (RP) and an 8-inch line valve to isolate the existing fire service line. The Terms and Conditions for Water Service with Flavours, Inc. are attached for your consideration. STAFF RECOMMENDATION: Approve the Terms and Conditions for Water Service with Flavours, Inc., Job No. 200810. 24855- EXISTING BUIILDING - 61 PROPOSED 3" WATER METER f PROPOSED 4" EX. 6 7`7 SERIrIGIE _EX. 8" WATER D PROP SED 8" GAT:VALVE I I ~I W ~I wI I' I' Q I _ m EX. 2" WATER SERVICE cb~ ' PROJECT SITE 011-81 sv, of VICINITY MAP LA PALMA AVENUE PLOT PLAN PREPARED BY: HL YORBA LINDA WATER DISTRICT w 1717 E. MIRALOMA AVENUE PLACENTIA, CALIFORNIA 92870 (714) 701-3000 EXHIBIT 24855 CORBIT PLACE WATER IMPROVEMENT SCALE: N.T.S. DATE: 07-30-08 FILENAME: 200810 Date: August 14, 2008 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER SERVICE NAME OF APPLICANT: FLAVOURS, INC. LOCATION OF PROJECT: 24855 CORBIT PLACE, YORBA LINDA TRACT NUMBER: N/A JOB NUMBER: 200810 SEWER: N/A LOT(S): 1 The applicant will be required to complete to the satisfaction of the District the following items that have an "X" following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) X The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 1 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. I. 4) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 2 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. 2. 5) X The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 6) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. 7) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. Page 2 of 5 NAME OF APPLICANT: FLAVOURS, INC. LOCATION OF PROJECT: 24855 CORBIT PLACE, YORBA LINDA 8) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 9) X The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 10) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District's approval of the construction plans. 11) X The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 12) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 13) X The applicant shall provide per the District specifications one complete set of "As Built" mylars and electronic copy of ACAD drawings (version 2002 or later) for the Water and/or Sewer facilities. 14) X The applicant shall complete an Application to and Agreement for Water Service. 15) X The applicant shall pay all of the water fees as required by the Rules and Regulations of the District. 16) X The applicant shall pay meter fees associated with the installation of radio read meters for this project. 17) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Water Service. 18) X The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. 19) X The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan, the Insurance Services Office's suggested standards contained in the "Grading Schedule of Municipal Fire Protection", and the District's Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 20) X The applicant's water facilities (off-site) shall be District owned and maintained. (Water line valve, water service and meter.) Page 3 of 5 NAME OF APPLICANT: FLAVOURS, INC. LOCATION OF PROJECT: 24855 CORBIT PLACE, YORBA LINDA 21) X The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. 22) X The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 23) The applicant shall install _ water Sampling Station(s) in conformance with the District's Standard Plans. 24) X The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 25) The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 26) X All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 27) X The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 28) X The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 29) X The applicant shall adjust and raise to grade all valve covers within the limits of this project. 30) X The applicant shall install a pressure regulator in all buildings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 31) X The applicant shall complete a Temporary Water Permit for all water that will be used through the new water services to serve the new buildings. 32) X The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 33) X The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 34) X The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly prior to the water meters being turned on for service. Page 4of5 NAME OF APPLICANT: FLAVOURS, INC. LOCATION OF PROJECT: 24855 CORBIT PLACE, YORBA LINDA 35) X The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 36) X The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District's Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 37) The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 38) The applicant shall complete an Application to and Agreement for Sewer Service. 39) The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Sanitary Sewer Service. 40) The applicant shall pay all of the sewer fees as required by the Rules and Regulations of the District. 41) The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 42) The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) The applicant's sewer facilities (on-site) shall be Privately, owned and maintained. 44) The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District's Plans and Specifications. 45) The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. NAME OF APPLICANT: FLAVOURS, INC. LOCATION OF PROJECT: 24855 CORBIT PLACE, YORBA LINDA Page 5 of 5 46) The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 47) The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 48) X The applicant shall install a new 4-inch water service with a new 3-inch meter, and cut-in a new 8-inch line valve to the existing 8-inch fire service line on Corbit Place, per approved plans and District Specifications. I hereby certify that the foregoing Terms and Conditions were approved at the August 14, 2008 Regular meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application To and Agreement with the Yorba Linda Water District for Water and/or Sewer Service is not executed for the project under consideration. Michael A. Payne, General Manager ITEM NO. /Z AGENDA REPORT APPROVED BY THE BOARD Of DIRECTORS Of THE YORBA LINDA WATER DISTRICT Board Meeting Date: August 14, 2008 AU G 14 To: Board of Directors B, From: Michael A. Payne, General Manager Staff Contact: Ken Vecchiarelli, Assistant General Manager Ariel Bacani, Engineering Technician Reviewed by General Counsel: N/A Budgeted: Funding Source: Account No: CEQA Compliance: EIR Estimated Costs: Subject: Terms and Conditions for Water and Sewer Servic( School N/A Dept: Eng Developer Funded 1/2-2600 Job No: 200805 N/A with Friends Christian High SUMMARY: Friends Christian Church is proposing to develop a high school on the north side of Bastanchury Road, between Casa Loma Avenue and Eureka Avenue. The project site consists of approximately 32.5 acres and is located in Pressure Zone 3 of the District's Western Service Area. An exhibit depicting the project location is attached for your reference. DISCUSSION: The District has an existing 16-inch water transmission line in Bastanchury Road. Friendship Christian High School will install 3,395 feet of new 8-inch pipeline to create a public onsite looped system that connects two housing tracts to the north and east with Bastanchury Road to the south. The new construction includes nine water services with backflow devices; three fire service lines for the school's private fire suppression system and five fire hydrants. The applicant is conditioned to abandon an old 10-inch cast iron pipeline and a pressure reducing station along the northern property line. For sewer service the property will connect to a new 8-inch onsite sewer main constructed by the Vista del Verde Development (VDV) along the western property. This sewer main drains into the new Bastanchury Road Sewer Trunk also constructed in cooperation with VDV. The applicant will cut-in a manhole and install two separate sewer laterals to serve the project's private onsite sewer system. The Terms and Conditions for Water and Sewer Service with Friends Christian High School are attached for your consideration. STAFF RECOMMENDATION: Approve the Terms and Conditions for Water and Sewer Service with Friends Christian High School, Job No. 200805. EX. 12" WATER .1 11 1 11 d EX.PRS j EXIST. 10" WATER MAIN Jr- - - - - - - - - - - - - - - PORTION OF EX. 10" WATER I MAIN TO BE ABANDONED EXIST. 10" WATER MAIN_ PROPOSED 8" PROPOSED FDCA 1 i „ WATER MAIN I PROPOSED 4" r FUTURE) IIf i ~r=----J BLDG. r-- I I I SEWER LAT. U '~lii------ L-----s---- I I I I I ___-J I r--, I I I I I I I PROPOSED FH I l r---1 I I I BLDG. I I i~~ I I I j I It ~o I a ~o LLJ ' i I i Lll a I I cn j L` Co Z 7:z 0 CL w 00 > r I l i I I a m PROPOSED Q ___J I I I BLDG. I I II III I I -71 l i n l l in l I I I II JLJ J Lr------ w III FH ~ C J J PROPOSED I r - I I FDCA I li ~ II w PROPOSED 8" I' I I WATER MAIN W it Q PROPOSED 8" PRIVATE Q i l ONSITE SEWER SYSTEM Q EXIST. 8" SEWER MAIN j I Ii ~ I I 14°N - - - - - - - - - - - - - - - - - - - - - - - - - - ----s--- \ 14"W ' - 14't0i 14"W I J~,•- BASTANCHURY ROAD EXIST. 14" WATER MAIN EXIST. 16" WATER MAIN EXIST. 8" SEWER MAIN LOCATION MAP PREPARED BY: SCALE: N.T.S. 0 L YORBA LINDA WATER DISTRICT EXHIBIT DATE: WATER AND SEWER IMPROVEMENTS 07-18-08 1717 E. MIRALOMA AVENUE FOR FRIENDS CHRISTIAN SCHOOL PLACENTIA, CALIFORNIA 92870 FILENAME: (714)701 3000 200805 Date: August 14, 2008 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER AND SEWER SERVICE NAME OF APPLICANT: FRIENDS CHRISTIAN HIGH SCHOOL LOCATION OF PROJECT: NORTH OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. AND EUREKA AVE. TRACT NUMBER: N/A JOB NUMBER: 200805 SEWER: 200805 LOT(S): 1 The applicant will be required to complete to the satisfaction of the District the following items that have an "X" following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) X The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 1 and that the home is subject to a property tax over and above the normal 1% Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. I. 4) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 2 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. 2. 5) X The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 6) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. 7) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. Page 2 of 5 NAME OF APPLICANT: FRIENDS CHRISTIAN HIGH SCHOOL LOCATION OF PROJECT: N. OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE. 8) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 9) X The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 10) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District's approval of the construction plans. 11) X The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 12) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 13) X The applicant shall provide per the District specifications one complete set of "As Built" mylars and electronic copy of ACAD drawings (version 2002 or later) for the Water and/or Sewer facilities. 14) X The applicant shall complete an Application to and Agreement for Water Service. 15) X The applicant shall pay all of the water fees as required by the Rules and Regulations of the District. 16) X The applicant shall pay meter fees associated with the installation of radio read meters for this project. 17) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Water Service. 18) X The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. 19) X The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan, the Insurance Services Office's suggested standards contained in the "Grading Schedule of Municipal Fire Protection", and the District's Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. Page 3 of 5 NAME OF APPLICANT: FRIENDS CHRISTIAN HIGH SCHOOL LOCATION OF PROJECT: N. OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE. 20) X The applicant's water facilities (on-site) shall be District owned and maintained. (Water pipelines, public fire hydrants, water services and meters.) 21) X The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. 22) X The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 23) The applicant shall install _ water Sampling Station(s) in conformance with the District's Standard Plans. 24) X The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 25) X The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 26) X All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 27) X The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 28) X The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 29) X The applicant shall adjust and raise to grade all valve covers within the limits of this project. 30) X The applicant shall install a pressure regulator in all buildings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 31) X The applicant shall complete a Temporary Water Permit for all water that will be used through the new water services to serve the new buildings. 32) X The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 33) X The applicant shall install a reduced pressure principle backflow prevention device on all buildings and landscape services. Page 4of5 NAME OF APPLICANT: FRIENDS CHRISTIAN HIGH SCHOOL LOCATION OF PROJECT: N. OF BASTANCHURY RD., BETWEEN CASA L OMA AVE. & EUREKA AVE. 34) X The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly prior to the water meters being turned on for service. 35) X The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 36) X The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District's Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 37) The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 38) X The applicant shall complete an Application to and Agreement for Sewer Service. 39) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Sanitary Sewer Service. 40) X The applicant shall pay all of the sewer fees as required by the Rules and Regulations of the District. 41) X The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 42) X The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) X The applicant's sewer facilities (on-site) shall be Privatelv owned and maintained. 44) X The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District's Plans and Specifications. 45) X The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. Page 5 of 5 NAME OF APPLICANT: FRIENDS CHRISTIAN HIGH SCHOOL LOCATION OF PROJECT: N. OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE. 46) X The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 47) X The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 48) X The applicant shall abandon in place the existing 10-inch cast iron water pipeline and pressure reducing station located along the northern property line and construct approximately 3,395 feet of new 8-inch water main to create a looped system, install 9 new water services, 3 new fire protection lines, and 5 new fire hydrants. The applicant shall cut-in one manhole and install 2 sewer laterals to the existing 8-inch onsite sewer main along the western property line, per approved plans and District Specifications. I hereby certify that the foregoing Terms and Conditions were approved at the August 14, 2008 Regular meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application To and Agreement with the Yorba Linda Water District for Water and/or Sewer Service is not executed for the project under consideration. Michael A. Payne, General Manager ITEM NO. 13 AGENDA REPORT APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT Board Meeting Date: August 14, 2008 AUG 1 2 8 To: Board of Directors BY From: Michael A. Payne, General Manager Staff Contact: Ken Vecchiarelli, Assistant General Manager Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: Mitigated Neg. Dec. Estimated Costs: Subject: Terms and Conditions for Water and Sewer Service Unified School District N/A Dept: Eng Developer Funded 1/2-2600 Job No: 200706 N/A Nith Placentia-Yorba Linda SUMMARY: Placentia-Yorba Linda Unified School District is currently constructing the new Yorba Linda High School (YLHS) at the North Orange County Community College District (NOCCCD) site within Pressure Zone 4 of the Shapell Development Area west of Fairmont Boulevard and south of the new extension of Bastanchury Road. The project consists of an additional 50.64 acres purchased from Shapell Industries, Inc. (Shapell) for a total of 67.19 acres and is located at the southwest corner of Fairmont Boulevard and Bastanchury Road. An exhibit depicting the project location is attached for your reference. DISCUSSION: The District has an existing 12-inch water main in Fairmont Boulevard that is currently serving the NOCCCD site with two 10-inch public onsite water mains. The Water Master Plan prepared for the Shapell Development Area requires that the applicant extend the existing onsite water mains connected to the new Zone 4 water transmission main in Bastanchury Road to serve the propose YLHS facilities. Staff recommends the construction of three new onsite tie-ins that will extend a looped water system to Bastanchury Road. For sewer service, the project will connect to an existing onsite 8-inch sewer main located west of the proposed YLHS buildings that was constructed by Shapell with adequate capacity to meet the demands of the new YLHS. PYLUSD will be required to connect a private sewer lateral to the 8-inch sewer main to serve the YLHS. A special term for service will require PYLUSD to discard any and all laboratory chemicals through a hazardous waste service. Otherwise, the standard water and sewer terms and conditions and development fees apply to this project. The Terms and Conditions for Water and Sewer Service with Placentia-Yorba Linda Unified School District are attached for your consideration. PRIOR RELEVANT BOARD ACTION(S): On June 26, 2008, the Board of Directors approved the Pre-Annexation Agreement between the Yorba Linda Water District and Placentia-Yorba Linda Unified School District and authorized the President and Secretary to execute the Agreement. STAFF RECOMMENDATION: Recommend the Board of Directors approve the Terms and Conditions for Water and Sewer Service with Placentia-Yorba Linda Unified School District, Job No. 200706. I r`_ I I ~I. I aZ v I ~ io a LU~ < I , I %/I ~ ~ I IrII I ~ I/I J 1 l/ I, LC W € I u 2 ap ;111 ItYi'I11T77V W O N ~ ~I C W ' ~rl y ti N II ff TTf II77S N w7E Ij N n x I_ II / -II •1I7 co 0 o N ~ 0 O~ ~ 42 9 0 OD 0 o N Q 3 - _ lt~ dy w Z kQ LL Wg 1;' a l _ ~II o a z O W U O e co M U by o 1 y W \ C O _ (n <C z Q 00 .~ER >Q i 0 iz \ co Z W~ 2 f a3 y \ W LL ya ~a y V o WN U) Z Q W Z > Q' Q O < LL _ I , Q °Vo \ o Cc, W U l C 1 0 J !o m D _ d W o- i Date: August 14, 2008 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER AND SEWER SERVICE NAME OF APPLICANT: PLACENTIA YORBA LINDA UNIFIED SCHOOL DISTRICT LOCATION OF PROJECT: 4175 FAIRMONT BOULEVARD PARCEL MAP NO.: N/A JOB NO.: 200706 SEWER: S-200706 LOT(S): 1 The applicant will be required to complete to the satisfaction of the District the following items that have an "X" following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) _ The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) _ The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 1 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. I. 4) _ The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 2 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. 2. 5) X The applicant shall submit two (2) sets of the following drawings to the District for plan check processing: a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 6) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. 7) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. Page 2 of 5 NAME OF APPLICANT: PLACENTIA YORBA LINDA UNIFIED SCHOOL DISTRICT LOCATION OF PROJECT: 4175 FAIRMONT BOULEVARD 8) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or other documents and instruments illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 9) X_ The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 10) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District's approval of the construction plans. 11) X_ The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 12) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 13) X_ The applicant shall provide, per the District specifications, one complete set of "As Built" mylars and electronic copy of ACAD drawings (version 2002 or later) for the Water and/or Sewer facilities. 14) X The applicant shall complete an Application to and Agreement for Water Service. 15) X The applicant shall pay all of the water fees as required by the Rules and Regulations of the District. 16) X The applicant shall pay meter fees associated with the installation of radio read meters for this project. 17) X_ The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Water Service. 18) X_ The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. 19) X The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan, the Insurance Services Office's suggested standards contained in the "Grading Schedule of Municipal Fire Protection", and the District's Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 20) X The applicant's water facilities (on-site) shall be District owned and maintained. Page 3 of 5 NAME OF APPLICANT: PLACENTIA YORBA LINDA UNIFIED SCHOOL DISTRICT LOCATION OF PROJECT: 4175 FAIRMONT BOULEVARD 21) X The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. 22) X The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 23) _ The applicant shall install - water Sampling Station(s) in conformance with the District's Standard Plans. 24) _ The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 25) X The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 26) X All existing water services that are not useable in the new plan shall be cut and plugged and properly abandoned at the main pipeline connection point. 27) X The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 28) X The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 29) X The applicant shall adjust and raise to grade all valve covers within the limits of this project. 30) X The applicant shall install a pressure regulator in all buildings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 31) X The applicant shall complete a Temporary Water Permit for all water that will be used through the new water services to temporarily serve the new dwellings. 32) X The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 33) X The applicant shall install a reduced pressure principle backflow prevention device on all buildings and landscape services. Page 4 of 5 NAME OF APPLICANT: PLACENTIA YORBA LINDA UNIFIED SCHOOL DISTRICT LOCATION OF PROJECT: 4175 FAIRMONT BOULEVARD 34) X The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly prior to the water meters being turned on for service. 35) X The applicant shall install and provide a written test report to the District certifying that all double check detector assemblies are operating properly prior to the double check detector assemblies being turned on for service. 36) X The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District's Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 37) _ The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 38) X The applicant shall complete an Application to and Agreement for Sewer Service. 39) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Sanitary Sewer Service. 40) X_ The applicant shall pay all of the sewer fees as required by the Rules and Regulations of the District. 41) X The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan, applicable Sub-Area Master Plans and Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 42) _ The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) X The applicant's sewer facilities (on-site) shall be privatelv owned and maintained. 44) _ The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District's Plans and Specifications. 45) X The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. 46) X The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Page 5 of 5 NAME OF APPLICANT: PLACENTIA YORBA LINDA UNIFIED SCHOOL DISTRICT LOCATION OF PROJECT: 4175 FAIRMONT BOULEVARD Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 47) _ The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 48) X The applicant shall discard all laboratory chemicals through a hazardous waste service and shall prohibit any such chemicals from entering into the public sewer system. 49) X The applicant shall construct and complete three 8-inch looped water systems to Bastanchury Road to serve this project per approved water improvement plans for the Yorba Linda High School and District Water Standards and Specifications. 50) X The applicant shall comply with the terms and conditions of the Pre- Annexation Agreement between the Yorba Linda Water District and Placentia-Yorba Linda Unified School District, as approved by the Board of Directors on June 26, 2008. I hereby certify that the foregoing Terms and Conditions were approved at the August 14, 2008 Regular meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application to and Agreement with the Yorba Linda Water District for Water and/or Sewer Service is not executed for the project under consideration. Michael A. Payne, General Manager ITEM NO. /T AGENDA REPORT Board Meeting Date: August 14, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Gina Knight, Human Resources Manager Reviewed by General Counsel: No Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: Subject: Damage Claim APPROVED BY THE SOARD Of LARECTORS Of THE YORSA LINDA WATER DISTRICT AUG 1f8 No Dept: Admin Water Operating Fund N/A Job No: N/A Claim is under $25,000 SUMMARY: The District received the attached claim seeking reimbursement for property related damages as a result of water line repairs performed by District staff. DISCUSSION: On May 8, 2008, Mr. Baer claimed District staff had inadvertently severed electrical lines under his concrete slab during the repairing of water lines. Mr. Baer claims an electrical line was cut between his home and the outer edges of the driveway thus disconnecting electrical power to his security and landscape lighting around the perimeter of the side and rear sections of his home. The District's Maintenance Superintendent contacted Lynn Nuzman, Sr. Maintenance Distribution Operator regarding the incident. Lynn Nuzman stated during the excavation not a single electrical line was cut and had his crew cut an electrical line at the time notification to the homeowner would have occurred immediately and repairs to the cut electrical line would have been performed prior to filling in the excavation. Mr. Baer submitted an invoice from Paradigm Electrical dated 5/21/2008 for the following work: Installation of electrical infrastructure for a patio ceiling fan, installation of ceiling fan, trouble shoot background light for artwork in wine cellar, removal of old ceiling fixtures in lower guest rooms and installation of new customer furnished fixture for a grand total of $672.00. On July 10, 2008, the District received a completed claim form from Mr. Baer requesting reimbursement for $672.00. However, attached to the claim was an invoice from Paradigm Electrical dated 5/15/2008 for the following repairs: troubleshoot rear landscape lighting, replace low voltage cable for a grand total of $535.40. Staff has reviewed the submitted claim and internal incident reports and recommends the claim be rejected and referred. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors reviews all claims not settled by staff. The claims and accompanying staff reports are presented to the Board of Directors for consideration as they are received. STAFF RECOMMENDATION: That the Board of Directors reject and refer to ACWA/JPIA the claim filed by Dan W. Baer for the property located at PLEASE CONTACT YLWD RECORDS DIVISION FOR THIS ATTACHMENT (714) 701-3101 records@ylwd.com APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ITEM NO. r AUG 14 8 MINUTES OF THE B ! YORBA LINDA WATER DISTRICT EXECUTIVE-ADMINISTRATIVE-ORGANIZATIONAL COMMITTEE MEETING August 13, 2008 A meeting of the Executive-Administrative-Organizational Committee was called to order by Committee Chair Summerfield on Tuesday August 13, at 4:00 p.m. The meeting was held at the District Administrative Office at 1717 E. Miraloma Ave, Placentia. DIRECTORS PRESENT: President John Summerfield, Chair Vice President William R. Mills STAFF PRESENT: Michael A. Payne, General Manager Ken Vecchiarelli, Asst. General Manager INTRODUCTION OF VISITORS AND PUBLIC COMMENTS: Chris Townsend, President of Townsend Public Affairs, Inc. Heather Dion, Townsend Public Affairs, Inc. Marie Perry, Townsend Public Affairs, Inc. ACTION ITEMS: 1. Consider amendments to the Townsend Public Affairs, Inc. Professional Services Agreement. The Committee heard a presentation by Townsend Public Affairs about their proposal that was requested by staff. The new proposal focused on Townsend doing more grant writing with more efforts focused on State grants. The committee discussed the various grants that the District had submitted applications. It was agreed that a matrix of the grants should be prepared and brought back to the committee. This item was continued until the next meeting. Everyone from Townsend Public Affairs left the meeting at the conclusion of item no. 1. 2. Consider Submitting Legislative Proposals for 1St year of 2009-2010 Legislative Session. The Committee discussed possible legislative issues to submit to ACWA but felt the one issue of changing the Sanitation District Act as suggested by staff would not be considered by ACWA since it was strictly related to one agency and that it did not apply to water. -1- DISCUSSION ITEMS: This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee Members. This portion of the agenda may also include items for information only. 3. Target levels of the 2005 Urban Water Management Plan General Manager Payne reported on staffs finding about the various action levels and the implications of each level. The committee also reviewed the various conservations that could be imposed on the District's customers. The committee also reviewed the action steps set forth in the plan that could be taken by the District. The committee was comfortable in leaving the Urban Water Management Plan alone at this time except for adding a few words to clarify the intent of the action levels. This item will be discussed at the Board meeting tomorrow. 4. Status report on Legislative Issues The committee briefly discussed the State budget and the possibility the State may use their powers to apply the property tax revenues that would normally go the various cities and water agencies to fund the budget. 5. Status report on Grant Applications The Committee briefly reviewed the various grant applications the District has applied for during the Townsend presentation. 6. Status report on O.C. Advocacy Group General Manager Payne informed the committee he terminated the professional services agreement with O.C. Advocacy Group. The Committee concurred with the action. 7. 2008 Conflict of Interest Biennial Review General Manager Payne announced it is that time to update the District's 2008 Conflict of Interest. The proposed changes were discussed with the Committee. A Resolution will be presented to the Board of Directors for adoption on September 11, 2008. 8. Board of Directors Agenda for August 14, 2008. General Manager Payne advised the committee that agenda items on the Board Agenda were moved to accompany invited speakers and for the need to discuss action levels before considering Consent Calendar items. The committee concurred. ADJOURNMENT: The Committee adjourned at 5:43 p.m. The next Executive-Administrative- Organizational Committee is scheduled for September 16, 2008, 4:00 p.m. -2- AppWO BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AAG 08 ITEM NO. MINUTES OF THE YORBA LINDA WATER DISTRICT PLANNING-ENGINEERING-OPERATIONS COMMITTEE August 7, 2008 A meeting of the Planning-Engineering-Operations Committee was called to order by Committee Chair William Mills at 4:00 p.m. The meeting was held at the District Administrative Offices at 1717 E. Miraloma Avenue, Placentia. COMMITTEE: Director William R. Mills, Chair Director Paul R. Armstrong STAFF: Ken Vecchiarelli, Asst. General Manager Lee Cory, Operations Manager John DeCriscio, Chief Plant Operator Ken Mendum, Operations Superintendent Stacy Bavol, Customer Service Supervisor INTRODUCTION OF VISITORS AND PUBLIC COMMENTS None DISCUSSION ITEMS: 1. Status Report on the Meter Replacement and Radio Read Retrofit Project. Ms. Bavol reported on the completion of Phase I of the District's Radio Read Meter Replacement and Conversion Project with over 14,000 meters now read and downloaded through the automated read process. Miss Bavol reported on an 80% reduction in the time required to read a fully converted meter route and commented on some of the benefits of the program such as fewer misreads and rereads. Mr. Vecchiarelli reported on costs accrued to date to complete Phase I, as well as the current spending occurring in support of Phase II of the project, which includes replacements and retrofits in the Improvement District 1 Service Area. Currently, the efforts have been temporarily suspending pending a full cost accounting to date and some additional testing and planning in support of the next phase of the program. The Committee members asked staff several questions and expressed their support of the continued efforts. 8. Meeting with City of Yorba Linda on Irrigation Demand Management. Mr. Vecchiarelli and Ms. Bavol reported on a meeting they attended with YLWD General Manager Payne, Assistant City Manager Dave Gruchow and Public Works Director Mark Stowell on July 31, 2008. Staff discussed the looming water supply shortage, the District's request for a voluntary 10% demand reduction and water usage throughout the City for irrigation purposes. District and City staff agreed to continue these communications, exchange additional information and to consider an action plan to achieve the desired results within the community. Staff committed to prepare a presentation on this subject for the City Council's information, tentatively for the second council meeting in September. Miss Bavol left the Planning-Engineering-Operations Committee meeting at the conclusion of discussion on Item 8. 2. Preventative Maintenance Program Status Report. Mr. Mendum and Mr. Cory reported on the planned maintenance program and discussed coordination of future efforts with the City of Yorba Linda. 3. Monthly Water Production and Purchased Imports through July 2008. Mr. DeCriscio and Mr. Vecchiarelli reported on the monthly groundwater production allowed by the basin production percentage (bpp) and the additional groundwater production required to meet obligations under the Conjunctive Use Program with the Metropolitan Water District of Southern California (MWD), the Municipal Water District of Orange County (MWDOC) and the Orange County Water District. Staff reported that YLWD met the bpp for July but fell partially behind on the CUP obligations due to an engine failure on one of the prime drivers at the Highland Booster Pump Station and trouble with several of the older wells at the Richfield Road Production Facilities and two remote wells offsite. Staff called upon outside contractors to repair the systems as quickly as possible and get them back into service. 4. Monthly Orange County Groundwater Producers Meetings. No report was given. 5. Monthly MWDOC Managers Meeting Summary Report. This item was discussed with Item No. 6 below. 6. MWD Allocation Plan & MWDOC Implementation Plan. Mr. Vecchiarelli and Mr. DeCriscio reported on a presentation by MWDOC staff that reviewed the MWD Allocation Plan and described in detail the implementation options for consideration and discussion by the MWDOC Agency Managers and member representatives. MWDOC staff will consider the comments and suggestions of the members in preparing the draft implementation plan, which they hope to have more fully developed for comments by mid- September. 7. Draft Irrigation Feasibility Study. Staff presented copies of a draft report prepared by Metcalf & Eddy engineers which studies the economic feasibility of constructing a non-potable irrigation system to meet landscaping water demands in the Improvement District 2 Service Area. Staff had not completed a full review of the draft report and was not prepared to present a recommendation for consideration. Director Mills commented that the project appears to have merit and should be further considered. The Committee discussed the project concept and items for staff to further develop in this consideration. 9. Proposed Action Plan Responding to the OC Grand Jury Report. No report was given. 10. Status Report on Capital Improvement Projects in Progress. No report was given. ADJOURNMENT: The Committee adjourned at 5:25 p.m. The next regularly scheduled Planning- Engineering-Operations Committee is scheduled for September 4, 2008 at 4:00 p.m. -2- APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AUG 1 008 ITEM NO. / 6,c MINUTES OF THE B? YORBA LINDA WATER DISTRICT PUBLIC INFORMATION - TECHNOLOGY COMMITTEE MEETING July 23, 2008 A meeting of the Yorba Linda Water District Public Information-Technology Committee was called to order by Committee Chair Ric Collett at 4:02 p.m. The meeting was held at the District Administration Office at 1717 E. Miraloma Avenue, Placentia. COMMITTEE MEMBERS PRESENT: Director Ric Collett, Chair Director Michael J. Beverage STAFF PRESENT: Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Assist. GM Pat Grady, IT Manager Cindy Mejia, Management Analyst INTRODUCTION OF VISITORS AND PUBLIC COMMENTS: None ACTION ITEMS: 1. None DISCUSSION ITEMS: 2. MWDOC Grant. Mike Payne advised the committee on the status of the grant MWDOC had applied for on behalf of the District and fifteen other member agencies for developing a tiered rate structure. Ken Vecchiarelli gave an explanation of the model that would be used to determine if the tiered rate structure would be a good fit for the District. Director Collett asked if MWDOC had explained the requirements of Proposition 218 as it applied to the changing of the rate structure. Ken replied MWDOC had decided it would support whatever each individual agency decided to do. Director Collett then stated the Board would review the possibility of a change of rate structure but noted it was important to present general information on the water crisis leading up to this possible change expeditiously. 3. Public Information Plan Notes. The committee reviewed staff's notes on possible public information tactics and Mike Payne stated by the next Public Information-Technology meeting, a more developed plan would be made available to the Committee. Director Beverage commented that the "why" of the campaign would need to come back to the Committee level several times to be developed. ADJOURNMENT: The meeting adjourned at 5:15 pm. The next meeting of the Public Information- Technology Committee is scheduled for July 30, 2008. OF1t~'ro'A~UNOAWATEii J~si'~~Gy AU G 4 8 ITEM NO. 16'e- MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC INFORMATION - TECHNOLOGY COMMITTEE MEETING July 30, 2008 A meeting of the Yorba Linda Water District Public Information-Technology Committee was called to order by Committee Chair Ric Collett at 4:02 p.m. The meeting was held at the District Administration Office at 1717 E. Miraloma Avenue, Placentia. COMMITTEE MEMBERS PRESENT: Director Ric Collett, Chair Director Michael J. Beverage STAFF PRESENT: Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Assist. GM Pat Grady, IT Manager Cindy Mejia, Management Analyst INTRODUCTION OF VISITORS AND PUBLIC COMMENTS: Adam Probolsky, Probolsky Research (Customer Survey) Justin Wallin, Probolsky Research (Customer Survey) Ben Boyce, Laer Pearce & Associates (Public Relations) ACTION ITEMS: 1. None DISCUSSION ITEMS: 2. Waterlines- Summer 2008 Edition. Cindy Mejia presented the Summer 2008 edition of Waterlines, and Director Beverage made some suggestions for improvement. Ben Boyce presented an 11 month public information plan to target communication to District customers on the issues of supply reliability, possible rate increases, and the upcoming Metropolitan Water District allocations. Michael Payne requested the committee members review the plan at home. Further decisions will be made at the August 5, 2008 committee meeting. 3. Customer Survey Results. Adam Probolsky and Justin Wallin presented the findings of the Customer Survey and explained the results to the Committee. Director Beverage made several comments regarding his surprise at the results of questions about fluoride, tiered rates, water pressure and conservation. Director Collett suggested that for the purposes of presenting the findings to the Board of Directors on August 14, 2008, the documents should be made easier to read and consist of no more than 3-4 pages. Michael Payne then presented a comparison of question results from the 1993, 1997, and 2008 customer survey. ADJOURNMENT: The meeting adjourned at 6:00 p.m. The next meeting of the Public Information- Technology Committee is scheduled for Tuesday, September 2, 2008. OFTH DBY THE BOARD OF DIRECTOR A U G 4 ITEM NO. /6C' MINUTES OF THE BY~~ YORBA LINDA WATER DISTRICT PUBLIC INFORMATION - TECHNOLOGY COMMITTEE MEETING August 5, 2008 A meeting of the Yorba Linda Water District Public Information-Technology Committee was called to order by Committee Chair Ric Collett at 4:00 p.m. The meeting was held at the District Administration Office at 1717 E. Miraloma Avenue, Placentia. COMMITTEE MEMBERS PRESENT: Director Ric Collett, Chair Director Michael J. Beverage STAFF PRESENT: Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Assist. GM Pat Grady, IT Manager VISITORS PRESENT: Laer Pearce and Ben Boyce of Lear Pearce & Associates ACTION ITEMS: 1. Public Information Campaign. Mr. Pearce and Mr. Boyce presented a proposal for services to assist the District with a comprehensive public information campaign on water conservation. General Manager Payne requested the proposal in support of the District's request for a 10% voluntary conservation and cut in water demands across the District's Service Area. The Committee discussed the details of this proposal which staff will present for consideration by the full Board of Directors at their regular meeting on August 14, 2008. Mr. Pearce and Mr. Boyce left the meeting following this discussion. 2. Updates to the 2005 Urban Water Management Plan. This item was pulled for consideration and discussion by the Executive-Administration Committee on August 13, 2008 and for discussion by the full Board of Directors at their regular meeting scheduled for August 14, 2008. DISCUSSION ITEMS: 3. Meeting with City of Yorba Linda - Landscape Watering. Mr. Payne and Mr. Vecchiarelli reported on a meeting held with City staff. 4. Water Lines - Summer 2008 edition. Mr. Payne reported staff has passed on revisions to the draft summer edition to include the key note conservation message. 5. Customer Survey Results. Mr. Payne reported the executive summary report and results of the Customer Survey are expected for the beginning of the week of August 11tH ADJOURNMENT: The meeting adjourned at 5:56 p.m. The next meeting of the Public Information- Technology Committee is scheduled for Tuesday, September 2, 2008 at 4:00 p.m. NOIIV(lNI1( NOLI.NJnaq NU • VP7 L;911;1 WATER EDU('.ATION FOUNDATION 717 K Street, Suite 317 Sacramento, CA 95814 (916) 444-6240 (916) 448-7699 fax www.watereducation.org A8 9002 6 i d fiq paluasa s,[ NONPROFIT ORG. U.S. POSTAGE PAID SACRAMENTO, CALIF. PERMIT NO. 430 -*"""MIXED AADC 945 Michael Payne Yorba Linda Wd Po Box 309 Yorba Linda CA 928850309 .nomasag salts pawdoad atp;o alts aq,l• suaans ysg pue uofleas dmnd qI esnlo,-uualD aueld do-ueap aural ulelunolN ucul weq e}segs uieq uoislanrq 3Jnlfl Pa2I q aII1A°IO PUeJj lEI I flsq janig lalpea3 saals uopeanls u Ieluauiuoalni QId' splag uiael aaipo PUesP° 'sPlaB aril slJa~O]d I°Auo~ poo13 :sdols anpeaua; • uoc9au ~l;Taed-p►y~l'u014etuel3ag10 neaing •S•n aql pue samnosag jaleM;o luaurliedacl eiuao;Tie, atp 4q pazosuods-oa sl moa aU •sanssr galena vnuo;rleD ul palswalur auoAue pup s;srleumot 'sluellnsuo°'siaAmel'szoloanp pup siaSeuem pnoq ialena'sialew-foilod ialum so; lsnw a si Jnol aqi, •elsegS alq uo asmj° leogasnoy a sapnl°ui pue AaHPA oluauipi:)eS aril ;o Oual aql slane4 inol sTgl •uoutlvs 4001111lj paiduvpua fo suot vlndod aaolsat of toga totvut v 8111pllpui salpai.Iav fiuvut tof 4u}od lvaof aq4 si'fivpo} puv'Nuiuuvf ptiv uo9mvlaat puvl'lotwo poolf, O sapvaap sapnlaui agW!tail s,uoi8at -'ILL •04uautvtavS fo tl~.tott fallvn o4uatuv.tavS • X14 itt ux8aq ypq' palaid feall yA ly,tPaJ lv.tapaf atl; puv;JalotJ "PM a4v4S aU Z •.tajvnz s,viu.toftlv:)fo ~uaa.tad 5£ filddns sauv4nqu4 sp puv taaig oattautvvvS at11 w r - ` The significance of the Sacramento River to your water supply Flood management and levee safety t,. Implementation of the CVP Improvement Act • r State Water Project and Central Valley Project operations Restoration of endangered Chinook salmon k j i Groundwater, conjunctive use and area-of-origin water rights Z p! Environmental restoration projects Agriculture/wildlife conservancies and wildlife refuges Impacts of mining on water quality Farming in the Sacramento Valley Possible surface water storage sites This fast paced tour begins at Sacramento International Airport at 7:45 a.m. Wednesday, September 10, travels the length of the Sacramento Valley, and • will end at approximately 6 p.m. Friday, September 12 at Sacramento International Airport. Iowa- Registration: $625 per person, single occupancy room: $1,050 for two people sharing a room. Register four or more people for a discount - single occupancy rooms $575; double occupancy rooms $1,000. Fee includes all meals, transportation and hotel accommodations, Chico Holiday Inn (Wednesday) and the Holiday Inn in Redding (Thursday), while on the tour - including a salmon barbecue Wednesday night. " Participants are responsible for their own transportation to and from f f Sacramento International Airport. To register, return form to the Foundation with payment; faxed reservations accepted with credit card or purchase order. Or, register securely on-line at www.watereducation.org/tours.asp All reservations are on a first-come, first-serve basis. -pft Deadline to cancel and receive a full refund is 5 p.m. Aug. 27 due to hotel, i b i i k f d , 41t z n wr t ng. request must e meal and transportation boo ings. Re un ~ 4 a Substitutions may be made at any time. This activity has been approved for Minimum Continuing Legal Education (MCLE) credit by the State Bar of California. The tour also offers California Department of Health Services Continuing Education units for a water - V plant or wastewater plant operator's license. There is an additional $100 fee to register for these credits. Contact the Foundation for more details. Additional information and an itinerary will be mailed approximately one month before the tour. Please notify the Foundation prior to the tour if you have a medical condition or other special need. Name(s) Title(s) Organization Address City Phone( 1 Driver's Licensell.D. Card No. Email State Zip State Exp. Date Date of Birth (necessary for security clearance at some facilities) Enclosed is my fee: 0 $625 each, single occupancy room; 0 $575 each, if 4 or more are registering 0 $1,050 for two people sharing a room; 0 $1,000 for 2, if 4 or more people are registering 0 $100 additional for credits Total enclosed $ For payment by: 0 Visa 0 MasterCard 0 American Express P.O. No. Credit Card No. Exp. date. WA'ifR EDucAnoN FOUNDATION 717 K Street, Suite 317 Sacramento, CA 95814 (916) 4446240 (916) 448-7699 fax www.watereducation.org Signature (must be signed to process credit card order) We reserve as many non-smoking rooms as are available. If you WANT a smoking room, please check here: 0 5 p.m. August 27 is the last day to cancel and receive a full refund. Refund request must be in writing. Substitutions may be made at any time.