HomeMy WebLinkAbout2008-10-23 - Board of Directors Meeting Agenda PacketAgenda Packet
Regular Meeting of the
Board of Directors
October 23, 2008
8:30 a. m.
1717 E. Miraloma Avenue, Placentia, CA 92870
pil Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, October 23, 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 httD://www.vlwd(cDvlwd.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
Presentation of California Landscape Contractors Association award by Ms
Williams, Project Manager and Ms. Kristen Ness, Executive Assistant of I
Landscape Contractors.
■ The District has been notified the following employees have passed test
their State of California Water Distribution certification:
Steve Clayton, Plant Operator II
Nicole Dalton, Meter Reader I
Jimmy DeAnda, Maintenance Worker I
Nick Hollon, Meter Reader I
Jorge Lopez, Maintenance Worker I
Anthony Varian, Maintenance Worker I
Kenny Graff, Maintenance Worker I
Water Distribution V
Water Distribution II
Water Distribution II
Water Distribution II
Water Distribution II
Water Distribution II
Water Distribution I
NIil_L;
CONSENT CALENDAR
All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering
previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be
no discussion on the items unless a member of the Board, the staff, or the public requests further consideration.
Minutes of the Regular Board of Directors meeting held October 9, 2008.
Recommendation: That the Board of Directors approve the minutes as
presented.
2. Payment of bills, refunds, and wire transfers.
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $1,563,440.68.
3. Progress Payment No. 17 for the Lakeview Reservoir Construction
Recommendation: That the Board of Directors approve Progress Payment
No. 17 in the net amount of $209,061.75 to SSC Construction, Inc. for
construction of the Lakeview Reservoir Project, Job No. 200704.
ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal
Board actions.
4. Final Audited Financial Statements for the period ending June 30, 2008.
Recommendation: That the Board of Directors receive and file the Audited
Financial Statements for the twelve months ending June 30, 2008.
5. Electronic Imaging and Agenda Automation System
Recommendation: That the Board of Directors authorize the General
Manager to execute a Professional Services Agreement with Datanet
Solutions at a cost of $69,192 for the Laserfiche electronic imaging system
and the NovusAgenda automation system.
6. Identity Theft Prevention Program
Recommendation: That the Board of Directors adopt Resolution No. 08-12,
approving an Identity Theft Prevention Program for the District.
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.
7. None
2
REPORTS, INFORMATION ITEMS AND COMMENTS
8. a. President's Report
b. Directors' Reports
c. General Manager's Report
1) Yorba Linda State of the City Address and Citizen of the Year Luncheon.
d. General Counsel's Report
COMMITTEE REPORTS
9. a. Executive-Administrative-Organizational Committee
(Summerfield/Mills) Alternate: Collett
1) Minutes of meeting held October 21 (to be presented at the Board meeting).
2) Meeting scheduled for November 18, 4:00 p.m.
b. Finance-Accounting Committee
(Beverage/Summerfield) Alternate: Mills
1) Minutes of meeting held October 14.
2) Meeting scheduled for November 10, 8:00 a.m.
c. Personnel-Risk Management Committee
(Armstrong/Collett) Alternate: Summenfeld
1) Minutes of meeting held October 13.
2) Meeting scheduled for November 10, 4:00 p.m.
d. Planning-Engineering-Operations Committee
(Mills/Armstrong) Alternate: Beverage
1) Meeting scheduled for November 6, 4:00 p.m.
e. Public Information-Technology Committee
(Collett/Beverage) Alternate: Armstrong
1) Meeting scheduled for November 4, 4:00 p.m.
f. MWDOC Ad Hoc Committee
(Mills/Collett) Alternate: Summerfield
1) Meeting scheduled for October 28, 4:00 p.m.
3
g. City of Placentia Ad Hoc Committee
(Beverage/Payne)
1) Meeting scheduled for November 7, 10:00 a.m.
INTERGOVERNMENTAL MEETINGS
10. a. MWDOC Board, October 15 (Staff)
b. OCWD Board, October 15 (Staff)
c. Yorba Linda Planning Commission, October 15 (Collett)
d. Yorba Linda City Council, October 21 (Mills)
BOARD OF DIRECTORS ACTIVITY CALENDAR
Authorization to attend meetings scheduled after October 23, 2008. Agenda is available in the District office prior to
meeting.
October 2008
District Board Meeting, Oct 23, 8:30 a.m.
Yorba Linda Fiesta Days Parade, Oct 25, 10:00 a.m.
MWDOC Ad Hoc Committee Meeting, Oct 28,4:00 p.m. Mills/Collett
Yorba Linda Planning Commission, Oct 29, 7:00 p.m. Summerfield
District Board Workshop, Oct 30, 8:00 a.m.
November 2008
FPublic Information-Technology Committee, Nov 4, 4:00 p.m.
Collett/Beverage
Yorba Linda City Council, Nov 4, 6:30 p.m.
Mills
MWDOC/MWD Workshop, Nov 5, 7:30 a.m.
Staff
OCWD Board, Nov 5, 5:00 p.m.
Staff
Planning-Engineering-Operations Committee, Nov 6, 4:00 p.m.
Mills/Armstrong
Placentia Ad Hoc Committee, Nov 7, 10:00 a.m.
Beverage
Finance-Accounting Committee, Nov 10, 8:00 a.m.
Beverage/Summerfield
Personnel-Risk Management Committee, Nov 10, 4:00 p.m.
Armstrong/Collett
Holiday, Nov 11
District Offices Closed
District Board Meeting, Nov 12, 8:30 a.m.
Yorba Linda Planning Commission, Nov 12, 7:00 p.m.
Collett
Executive-Admin-Organizational Committee, Nov 18, 4:00 p.m.
Summerfield/Mills
Yorba Linda City Council, Nov 18, 6:30 p.m.
Armstrong
MWDOC Board, Nov 19,8:30 a.m.
Staff
OCWD Board, Nov 19, 5:00 p.m.
Staff
District Board Meeting, Nov 26, 8:30 a.m.
Yorba Linda Planning Commission, Nov 26, 7:00 p.m. '
Summerfield
Holiday, Nov 27-28
District Offices Closed
4
December 2008
Public Information-Technology Committee, Dec 2, 4:00 p.m.
Yorba Linda City Council, Dec 2, 6:30 p.m.
MWDOC/MWD Workshop, Dec 3, 7:30 a.m.
OCWD Board, Dec 3, 5:00 p.m.
Planning-Engineering-Operations Committee, Dec 4, 4:00 p.m
Personnel-Risk Management Committee, Dec 8, 4:00 p.m.
Finance-Accounting Committee, Dec 9, 4:00 p.m.
Yorba Linda Planning Commission, Dec 10, 7:00 p.m.
District Board Meeting, Dec 11, 8:30 a.m.
Executive-Admin-Organizational Committee, Dec 16, 4:00 p.m
Yorba Linda City Council, Dec 16, 6:30 p.m.
MWDOC Board, Dec 17, 8:30 a.m.
OCWD Board, Dec 17, 5:00 p.m.
District Board Meeting, Dec 23, 8:30 a.m.
MWDOC Ad Hoc Committee Meeting, Dec 23, 4:00 p.m.
Yorba Linda Planning Commission, Dec 24, 7:00 p.m. *
*May be rescheduled due to the upcoming holidays.
CONFERENCES AND SEMINARS
Collett/Beverage
Mills
Staff
Staff
Mills/Armstrong
Armstrong/Collett
Beverage/Summerfield
Collett
Summerfield/Mills
Armstrong
Staff
Staff
Summerfield
11. 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. MWDOC Water Policy Forum and Dinner - November 12, 2008.
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.
12. None.
ADJOURNMENT
A workshop meeting of the Board of Directors is scheduled for October 30, 2008, at
8:00 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
APPROVED BY THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
OCT 2 3 2008
BY W
(94-
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
October 9, 2008
ITEM NO.
The October 9, 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 STAFF PRESENT
John W. Summerfield, President Michael A. Payne, General Manager
Michael J. Beverage Kenneth R. Vecchiarelli, Asst. G.M.
Ric Collett Arthur G. Kidman, General Counsel
Lee Cory, Operations Manager
Diane Cyganik, Finance Director
Annie Alexander, Executive Secretary
Jennifer Hill, Meter Services Rep.
Nicholas Hollon, Meter Reader I
Kelly King, Meter Reader I
DIRECTORS ABSENT AT ROLL CALL
William R. Mills, Vice President
Paul R. Armstrong
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS
Assistant General Manager Vecchiarelli introduced Brett Barbre, MWDOC Director.
SPECIAL RECOGNITION
Meter Services Representative Jennifer Hill, introduced Nicholas Hollon and Kelly King,
newly hired Meter Reader I's.
CONSENT CALENDAR (Items 1 through 3)
Director Beverage stated that he would need to abstain from voting on Check No.
50147 of Item 2 as he had received income over $500 within the past 12 months from
AECOM, who is the parent company of Metcalf & Eddy, Inc. General Counsel Kidman
advised that Check No. 50147 be removed from the consent calendar and brought back
for approval at the next Board meeting as there was not a quorum with Director
Beverage abstaining.
On a motion by Director Collett, seconded by Director Summerfield, the Board of
Directors voted 3-0 to approve the Consent Calendar with the exception of Check
No. 50147 of Item 2 which is to be continued until October 23, 2008.
1. Minutes of the Regular Board of Directors meeting held September 25, 2008.
Recommendation: Approve the minutes as presented.
2. Payment of bills, refunds, and wire transfers.
Recommendation: Ratify and authorize disbursements in the amount of
$2,742,591.87.
3. Progress Payment No. 5 for the Highland Reservoir Replacement Project.
Recommendation: That the Board of Directors approve Progress
Payment No. 5 in the amount of $537,436.64 to Schuler Engineering
Corporation for construction of the Highland Reservoir Replacement
Project, Job No. 200309.
Finance Director Cyganik left the meeting at this time.
ACTION CALENDAR
4. None.
DISCUSSION ITEMS
5. None.
REPORTS, INFORMATION ITEMS AND COMMENTS
6. a. President's Report
President Summerfield commented on a questionnaire and summary
report he had received from Southern California Edison regarding his
utility usage.
b. Directors' Reports
Director Beverage commented on some recent news articles regarding
homeowners being cited by city government agencies for removing sod
and installing xeriscape or synthetic turf in their yards. Citizens are
receiving a mixed message from water districts and city government
agencies regarding water conservation and landscaping codes. Staff was
encouraged to work with city agencies within the District's boundaries to
ensure that a unified message was being given to our constituents.
Director Beverage further stated that the District's voluntary conservation
measures were not working. He suggested that the District adopt a water
efficiency and public information program by November 1, 2008.
C. General Manager's Report
Assistant General Manager Vecchiarelli reported that the District had
received a public records request regarding the water usage of Yorba
Linda City officials. General Counsel Kidman explained that the District
would not be allowed to disclose these records as city officials do not have
the authority to determine the utility policies of the District. Assistant
General Manager Vecchiarelli stated that the intention of staff was to let
the customer know that these records are protected and advise him to
seek permission directly from each city official to release this information.
General Manager Payne stated that the District's response would also be
2
copied to the city's Interim General Manager. Assistant General Manager
Vecchiarelli then announced that the OCWD would be celebrating their
75th anniversary on October 15, 2008. An event flyer will be provided to
the Board. Director Collett announced that the City of Yorba Linda Fiesta
Days Parade would be held October 25, 2008. Director Summerfield
stated that he planned to attend. General Manager Payne reported on the
condition of Director Armstrong.
d. General Counsel's Report
General Counsel Kidman commented on a memo provided to the Board
regarding the declaration of conflict of interests during public meetings.
Examples of declarations were discussed. Staff will continue to work with
Directors to keep them informed of potential conflict of interests.
General Counsel Kidman also reported on a workshop held October 1,
2008 by the State Water Resources Control Board (SWRCB) regarding
the development of an urban water conservation regulatory program.
MWDOC Director Barbre addressed the Board regarding this workshop
and stated that agencies seeking state funding for water management
may be required to comply with the new regulatory program. MWDOC
has requested that the SWRCB delay implementation of this requirement.
General Counsel Kidman commented on a memo sent to the District
regarding recent amendments to the Federal Credit Reporting Act called
the "Red Flag Rules". These amendments require the District to develop
and implement an identity theft prevention program by November 1, 2008.
General Counsel Kidman suggested that staff begin by documenting
security measures currently in place. The Board reviewed the new
regulations and instructed staff to produce a good faith effort to develop
such a program.
Director Summerfield requested that a report of fraudulent activity,
including bad credit card transactions and returned checks, to be provided
to the Finance-Accounting Committee for review.
General Manager Payne left the meeting at this time.
COMMITTEE REPORTS
7. a. Executive-Administrative-Organizational Committee
(Summerfield/Mills) Alternate: Collett
1) Meeting scheduled for October 21, 4:00 p.m.
b. Finance-Accounting Committee
(Beverage/Summerfield) Alternate: Mills
1) Meeting scheduled for October 14, 4:00 p.m. This meeting was
tentatively rescheduled for 2:00 p.m. Staff will confirm time with
committee members.
3
C. Personnel-Risk Management Committee
(Armstrong/Collett) Alternate: Summerfield
1) Meeting scheduled for October 13, 4:00 p.m. Director Summerfield
will attend in the absence of Director Armstrong.
d. Planning-Engineering-Operations Committee
(Mills/Armstrong) Alternate: Beverage
1) Minutes of the meeting held October 2 were included in the agenda
packet. Directors Mills and Beverage attended. Items discussed
during the meeting were as follows: monthly groundwater
production and purchased water through September 2008; status of
conservation efforts and demand management; monthly
preventative maintenance; monthly groundwater producers
meeting; and the status of capital projects in progress.
2) Meeting scheduled for November 6, 4:00 p.m.
e. Public Information-Technology Committee
(Collett/Beverage) Alternate: Armstrong
1) Minutes of meeting held October 7 were presented at the meeting.
Director Beverage attended. Items discussed during the meeting
were the electronic imaging system and current public information
tactics.
2) Meeting scheduled for November 4, 4:00 p.m.
General Manager Payne rejoined the meeting at this time.
f. MWDOC Ad Hoc Committee
(Mills/Collett) Alternate: Summerfield
1) Meeting scheduled for October 28, 4:00 p.m.
g. City of Placentia Ad Hoc Committee
(Beverage/Payne)
1) Meeting to be scheduled.
INTERGOVERNMENTAL MEETINGS
8. a. MWDOC/MWD Joint Workshop, October 1 (Staff)
Staff did not attend. Assistant General Manager Vecchiarelli reviewed
some items of interest on the agenda including the status of the second
lower cross feeder project.
4
b. OCWD Board, October 1 (Staff)
Staff did not attend. Assistant General Manager Vecchiarelli reported that
the OCWD's long range facilities plan was discussed during the meeting.
C. Yorba Linda City Council, October 7 (Summerfield)
Director Summerfield attended. Items on the agenda included discussion
of the coyote infestation due to the drought.
BOARD OF DIRECTORS ACTIVITY CALENDAR
Authorization to attend meetings scheduled after October 9, 2008. Agenda is available in the District office prior to
meeting.
October 2008
FCity of Placentia Heritage Festival Parade, Oct 11, 9:30 a.m.
I
Personnel-Risk Management Committee, Oct 13, 4:00 p.m.
Collett/Summerfield
Finance-Accounting Committee, Oct 14, 4:00 o.m.
I Beverage/Summerfield
MWDOC Board, Oct 15, 8:30 a.m.
I Staff
OCWD Board, Oct 15, 5:00 p.m.
I Staff
Yorba Linda Planning Commission, Oct 15, 7:00 p.m.
I Collett
Executive-Admin-Organizational Committee, Oct 21, 4:00 o.m.
Summerfield/Mills
Yorba Linda City Council, Oct 21, 6:30 p.m.
I Mills
District Board Meeting, Oct 23, 8:30 a.m.
City of Yorba Linda Fiesta Days Parade, Oct 25, 10:00 a.m.
I
MWDOC Ad Hoc Committee Meeting, Oct 28, 4:00 p.m.
I Mills/Collett
Yorba Linda Planning Commission, Oct 29, 7:00 p.m.
I Summerfield
District Board Workshop, Oct 30, 8:00 a.m.
I
November 2008
FPublic Information-Technology Committee, Nov 4, 4:00 p.m.
Yorba Linda City Council, Nov 4, 6:30 p.m.
MWDOC/MWD Joint Workshop, Nov 5, 8:30 a.m.
OCWD Board, Nov 5, 5:00 p.m.
Planning-Engineering-Operations Committee, Nov 6, 4:00 p.m.
Finance-Accounting Committee, Nov 10, 8:00 a.m.
Personnel-Risk Management Committee, Nov 10, 4:00 p.m.
Holiday, Nov 11
District Board Meeting, Nov 12, 8:30 a.m.
Yorba Linda Planning Commission, Nov 12, 7:00 p.m.
Executive-Admin-Organizational Committee, Nov 18, 4:00 p.m.
Yorba Linda City Council, Nov 18, 6:30 p.m.
MWDOC Board, Nov 19, 8:30 a.m.
OCWD Board, Nov 19, 5:00 p.m.
District Board Meeting, Nov 26, 8:30 a.m.
Yorba Linda Planning Commission, Nov 26, 7:00 p.m. "
Holiday, Nov 27-28
*May be rescheduled due to the upcoming holidays.
Collett/Beverage
Mills
Staff
Staff
Mills/Armstrong
Beverage/Summerfield
Armstrong/Collett
District Offices Closed
Collett
Summerfield/Mills
Armstrong
Staff
Staff
Summerfield
District Offices Closed
5
CONFERENCES AND SEMINARS
9. 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. None.
A recess was declared at 9:41 a.m. The Board of Directors reconvened in Closed
Session at 9:51 a.m. All Directors were present. Also present were General Manager
Payne and Assistant General Manager Vecchiarelli.
ADJOURN TO CLOSED SESSION
10. Public Employee Appointment
Pursuant to Section 54957 of the California Government Code.
Title: General Manager.
11. Conference with Legal Counsel - Anticipated Litigation
Initiation of litigation pursuant to subdivision (c) of Section 54956.9 of the
California Government Code.
Number of Cases: One
CLOSED SESSION REPORT
The Board of Directors reconvened in Open Session at 10:34 a.m. There were no
reportable items from the Closed Session.
ADJOURNMENT
On a motion by Director Beverage, seconded by Direct r Collett, the Board of Directors
voted to adjourn at 10:34 a.m. to a -stZp"AM ring of the Board of Directors
scheduled for Octobe-c-W, 2008 at_a;W a.m., at 1717 E. Miraloma Avenue, Placentia
92870. 3 g. ~p
6
ITEM NO. Z
AGENDA REPORT
APPROVED BY THE BOARD OF DIRECTORS
OF THE YORBA LINDAWATER DISTRICT
Board Meeting Date: October 23, 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:
O C T 2 3 2008
C
BY
w/ g,;
V 4A,0 • So 1
Yes Total Budget: N/A
All Funds
N/A Job No: N/A
$1,563,440.68 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 $4,307.60
to Bank of America for September 2008 visa payment; a wire of $710,242.24 to MWDOC for
August 2008 water purchase; a wire of $31,870.75 to Parsons for Job 200704 for September
2008 services rendered; a wire of $10,983.25 to City National Bank for Job 200704 September
2008 retention payment; and, a check of $209,061.75 to SSC Construction for Job 200704
September 2008 progress payment. The balance of $365,558.45 is routine invoices.
In summary, the check register total is $1,332,024.04; payroll No. 20 total is $231,416.64; and,
the disbursements of this agenda report are $1,563,440.68. A summary of the checks is as
follows:
Pavables:
Void Checks
Manual Checks
Computer Checks
Pavroll #20:
Computer Checks
Manual Checks
Check Nos.
50067
and 50147
Check Nos.
50186
- 50189
Check Nos.
50190
- 50285
Check Nos. 4165 - 4175
Check Nos. 4176 - 4183
The disbursement total for the current period is $1,563,440.68, distributed as follows:
Water $1,540,384.56
Sewer $ 18,229.71
ID #1 $ 0.00
ID #2 $ 4.826.41
TOTAL $1,563,440.68
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 $1,563,440.68.
October 23, 2008
CHECK NUMBERS
50067 AND 50147
50186 TO 50285
WIRES:
$ 0.00
$ 574,620.20
W-101308 Bank of America
W-101408 MWDOC
W-102308 Parsons
W-102308A City National Bank
TOTAL OF CHECKS AND WIRES:
PAYROLL NO. 20:
CHECK NUMBERS:
$ 1,332,024.04
4165 TO 4183 $ 231,416.64
TOTAL: $ 1,563,440.68
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF OCTOBER 23, 2008
TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS
AS FOLLOWS:
WATER $1,540,384.56 SEWER $ 18,229.71
ID # 1 $ 0.00 ID # 2 $ 4,826.41
$
4,307.60
$
710,242.24
$
31,870.75
$
10.983.25
$
757,403.84
TOTAL: $1,563,440.68
Yorba Linda Water DistrictCHECK REGISTER
FOR CHECKS DATED 10-10-08 THRU 10-23-08
Check.
Check...
Posting.
Vendor Name
Check.....
No
Date
Date
Amount
50193
10-23-08
10-23-08
1-800-CONFERENCE(R)
108.82
50194
10-23-08
10-23-08
4 IMPRINT INC
406.74
50195
10-23-08
10-23-08
ABIGAIL ABBOTT STAFFING SVC
3,128.43
50196
10-23-08
10-23-08
ALTERNATIVE HOSE INC.
448.67
50197
10-23-08
10-23-08
ANSWER ONE COMMUNICATIONS
460.61
50198
10-23-08
10-23-08
AQUA-METRIC SALES CO.
1,275.21
50199
10-23-08
10-23-08
ARCHIE'S TOWING
110.00
50200
10-23-08
10-23-08
ARMANDO RAYA
116.89
50201
10-23-08
10-23-08
ARROW HARDWARE
677.53
50202
10-23-08
10-23-08
ARROWHEAD
24.34
50203
10-23-08
10-23-08
AT & T MOBILITY
81.06
50204
10-23-08
10-23-08
AT&T
417.60
50205
10-23-08
10-23-08
AWWA - DUES
56.50
50206
10-23-08
10-23-08
B & M LAWN & GARDEN
41.77
50207
10-23-08
10-23-08
B & S GRAPHICS, INC.
1,958.46
101308
10-13-08
10-13-08
BANK OF AMERICA
4,307.60
50208
10-23-08
10-23-08
BELL PIPE & SUPPLY
724.27
50209
10-23-08
10-23-08
C & L REFRIGERATION CORP.
259.16
50210
10-23-08
10-23-08
CADET UNIFORM SERVICE
666.46
50211
10-23-08
10-23-08
CAREER TRACK SEMINARS
149.00
50212
10-23-08
10-23-08
CDW-G GOVERNMENT, INC
870.72
02308A
10-23-08
10-23-08
CITY NATIONAL BANK
10,983.25
50213
10-23-08
10-23-08
CITY OF ANAHEIM
15,620.29
50214
10-23-08
10-23-08
CITY OF PLACENTIA
6,920.79
50215
10-23-08
10-23-08
CLA-VAL CO.
2,604.32
50216
10-23-08
10-23-08
COSTCO MEMBERSHIP
50.00
50217
10-23-08
10-23-08
CPR TECHNOLOGY
983.65
50218
10-23-08
10-23-08
CYNTHIA MEDIA
111.15
50219
10-23-08
10-23-08
D. R. CRISKE TRUCKING
350.19
50220
10-23-08
10-23-08
DAPPER TIRE CO. INC.
730.61
50221
10-23-08
10-23-08
DATALOK ORANGE COUNTY
322.73
50222
10-23-08
10-23-08
DELL MARKETING L.P.
1,713.23
50223
10-23-08
10-23-08
DELTA DENTAL - PMI
335.75
50224
10-23-08
10-23-08
DICK'S LOCK & SAFE INC.
655.30
50225
10-23-08
10-23-08
EISEL ENTERPRISES, INC.
600.43
Yorba Linda Water DistrictCHECK REGISTER
FOR CHECKS DATED 10-10-08 THRU 10-23-08
Check. Check... Posting. Vendor Name
No Date Date
50226 10-23-08 10-23-08
50227 10-23-08 10-23-08
50228 10-23-08 10-23-08
50229 10-23-08 10-23-08
50230 10-23-08 10-23-08
50231 10-23-08 10-23-08
50232 10-23-08 10-23-08
50233 10-23-08 10-23-08
50234 10-23-08 10-23-08
50235 10-23-08 10-23-08
50236 10-23-08 10-23-08
50237 10-23-08 10-23-08
50238 10-23-08 10-23-08
50239 10-23-08 10-23-08
50240 10-23-08 10-23-08
50241 10-23-08 10-23-08
50242 10-23-08 10-23-08
50243 10-23-08 10-23-08
50244 10-23-08 10-23-08
50245 10-23-08 10-23-08
50246 10-23-08 10-23-08
50247 10-23-08 10-23-08
50147 10-09-08 10-15-08
50248 10-23-08 10-23-08
50249 10-23-08 10-23-08
50250 10-23-08 10-23-08
50251 10-23-08 10-23-08
50252 10-23-08 10-23-08
101408 10-14-08 10-14-08
50190 10-23-08 10-23-08
50253 10-23-08 10-23-08
50254 10-23-08 10-23-08
50255 10-23-08 10-23-08
50256 10-23-08 10-23-08
50257 10-23-08 10-23-08
FAIRWAY FORD SALES, INC.
FEDERAL EXPRESS
FRY'S ELECTRONICS
GARDEN GATE FLOWER SHOP
GRAYBAR ELECTRIC CO
GRIFFITH AIR TOOL, INC.
HAAKER EQUIPMENT CO.
HARRINGTON INDUSTRIAL
HD SUPPLY WATERWORKS
HOME DEPOT CREDIT SERVICES
HSBC BUSINESS SOLUTIONS
JOHN DEERE LANDSCAPES
JORGE LOPEZ
LAB SAFETY SUPPLY, INC
LIEBERT CASSIDY WHITMORE
LIGHT BULBS ETC
LINCOLN NATIONAL LIFE
MAG SYSTEMS, INC.
MANAGEMENT ACTION PROGRAMS
MC FADDEN-DALE HARDWARE
MC MASTER-CARR SUPPLY CO.
McCORMICK,KIDMAN & BEHRENS
METCALF & EDDY, INC.
METCALF & EDDY, INC.
METROPOLITAN WATER DISTRICT
MINE SAFETY APPLIANCE CO
MORTON SALT
MUNICIPAL WATER DISTRICT
MUNICIPAL WATER DISTRICT
MYRON WHITE
NATIONAL SIGNAL INC.
NICKEY PETROLEUM CO
OFFICE SOLUTIONS
ORANGE COUNTY - I W M D
INC
LLP
ORANGE COUNTY - TAX COLLECTOR
Check....
Amount
92.35
20.12
431.99
147.59
1,137.47
468.28
1,592.94
756.99
1,107.82
83.43
464.08
261.83
60.00
123.18
3,245.20
366.40
1,854.04
629.10
2,000.00
1,928.46
166.25
12,650.14
-7,282.00
7,282.00
25,000.00
5,194.62
2,404.09
54.00
710,242.24
62.18
121.00
6,343.50
122.89
256.22
11,427.62
Yorba Linda Water DistrictCHECK REGISTER
FOR CHECKS DATED 10-10-08 THRU 10-23-08
Check. Check... Posting. Vendor Name Check.....
No Date Date Amount
50258
10-23-08
10-23-08
ORANGE COUNTY REGISTER
1,198.50
102308
10-23-08
10-23-08
PARSONS ENGINEERING SCIENCE
31,870.75
50259
10-23-08
10-23-08
PEGGY McCLURE
498.75
50186
10-10-08
10-10-08
PLACENTIA DISPOSAL
499.36
50260
10-23-08
10-23-08
PRAXAIR DISTRIBUTION
40.72
50261
10-23-08
10-23-08
PROJECT PARTNERS, INC.
10,296.00
50262
10-23-08
10-23-08
PSOMAS & ASSOCIATES
47,099.42
50263
10-23-08
10-23-08
QUINN POWER SYSTEMS ASSOCIATES
3,197.52
50264
10-23-08
10-23-08
R J SERVICES, INC
726.63
50265
10-23-08
10-23-08
RBF CONSULTING
6,890.00
50266
10-23-08
10-23-08
REFRIGERATION SUPPLIES
104.59
50191
10-23-08
10-23-08
SE JIN LEE
183.35
50267
10-23-08
10-23-08
SENIK PAINT CO.
548.58
50268
10-23-08
10-23-08
SNAP-ON TOOL - ROGER LIVERMORE
831.95
50067
09-25-08
10-15-08
SOUTH COAST AQMD
-541.72
50187
10-10-08
10-10-08
SOUTHERN CALIF EDISON CO.
229.44
50188
10-10-08
10-10-08
SOUTHERN CALIF EDISON CO.
90,576.65
50189
10-10-08
10-10-08
SOUTHERN CALIF GAS CO.
39,142.06
50269
10-23-08
10-23-08
SOUTHERN CALIF GAS CO.
4,399.97
50270
10-23-08
10-23-08
SOUTHWEST NETWORKS INC.
17,162.50
50271
10-23-08
10-23-08
SSC CONSTRUCTION, INC
209,061.75
50272
10-23-08
10-23-08
ST.JOSEPH HERITAGE HEALTHCARE
501.17
50273
10-23-08
10-23-08
STACY BAVOL/PETTY CASH
160.70
50274
10-23-08
10-23-08
STAPLES BUSINESS ADVANTAGE
1,227.45
50275
10-23-08
10-23-08
SUNRISE MEDICAL GROUP
95.00
50276
10-23-08
10-23-08
TERMINIX PROCESSING CENTER
1,755.00
50192
10-23-08
10-23-08
TODD YAMASAKI
76.50
50277
10-23-08
10-23-08
TOWNSEND PUBLIC AFFAIRS, INC.
5,240.00
50278
10-23-08
10-23-08
UNDERGROUND SERVICE ALERT
148.50
50279
10-23-08
10-23-08
UNITED INDUSTRIES
190.31
50280
10-23-08
10-23-08
USA BLUE BOOK
104.09
50281
10-23-08
10-23-08
WEIR CANYON CHEVROLET
101.54
50282
10-23-08
10-23-08
WELLS SUPPLY CO
7,925.14
50283
10-23-08
10-23-08
XEROX CORPORATION
929.43
50284
10-23-08
10-23-08
YORBA LINDA AUTO PARTS
384.97
Yorba Linda Water DistrictCHECK REGISTER
FOR CHECKS DATED 10-10-08 THRU 10-23-08
Check. Check... Posting. Vendor Name Check.....
No Date Date Amount
50285 10-23-08 10-23-08 YORBA LINDA HARDWARE 79.92
1,332,024.04
ITEM NO.
AGENDA REPORT
Board Meeting Date: October 23, 2008
To: Board of Directors APPROVED BY THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
From: Michael A. Payne, General Manager OCT 2 3 2008
Staff Contact: Ken Vecchiarelli, Assistant General Manager BY_~Jev
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. 17 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.
17, in the net amount of $209,061.75 for completed work through September 30, 2008. During
this period, the contractor continued installation of miscellaneous drainage piping, retaining wall
footings and block masonry. Various site electrical work has been completed for both reservoir
bays and backfill continues where possible.
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. 17 is $220,065.00 (2.1 % of the total contract
amount), less 5% retention of $11,003.25 for a net payment of $209,061.75.
• Total payments to date including retention are $9,794,028.92 (91.6% of the total
contract amount).
• As of September 30, 2008, 471 calendar days were used (82.1 % 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. 17
is attached for your reference.
COPY
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 sixteen
progress payments to date for this project, the most recent of which was approved on
September 11, 2008.
STAFF RECOMMENDATION:
Approve Progress Payment No. 17 in the net amount of $209,061.75 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. 17
LOCATION Yorba Linda, CA PROJECT NO. 200704 PAGE 1 OF 1 PAGES
CONTRACTOR SSC Construction, Inc. DATE 9130108
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 5%
LESS OTHER DEDUCTIONS
NET EARNED TO DATE
LESS AMOUNT PREVIOUSLY PAID
BALANCE DUE THIS ESTIMATE
NOTICE TO PROCEED
COMPLETION TIME
APPROVED TIME EXTENSIONS
TOTAL CONTRACT TIME
TIME EXPENDED TO DATE
TIME REMAINING
487
87
574
471
103
$ 10,489,500.00
208,281.37
10,697,781.37
September 1, 2008
PREVIOUS
$ 9,365,682.551s
$ 208,281.371 $
$ 9,573,963.92 1 $
TO Septemb
THIS MONTH
220,065.001 $
- Is
220,065.001 $
er 30, 2008
TO DATE
9,585,747.55
208,281.37
9,794,028.92
489,701.45
50% of Electronic W re Fees $ 150.00
$ 9,304,177.47
$ 9,095,115.72
$ 209,061.75
June 18, 2007
CALENDAR DAYS
CALENDAR DAYS
CALENDAR DAYS
CALENDAR DAYS
CALENDAR DAYS
REQUESTED BY: t
rB~Brow , Asst. Controller, SS6 C¢nstruction Inc.
APPROVED BY: aI J1 (
ohn Whisenh - , Construction anager, Butier Engineering
APPROVED BY:
Kenneth R. Vacchiarelli, Assistant General Manager, YLWD
DATE: /'O~/Or
f
DATE: L / 4 /O
DATE:
ITEM NO.
AGENDA REPORT
Board Meeting Date: October 23, 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:
APPROVED BY THE BOARD Of DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
OCT 2 3 2008
BY W
N/A Total Budget:
All Funds
Job No:
Dept: Bus
Subject: Audited Financial Statements for July 1, 2007 through June 30, 2008
SUMMARY:
Each fiscal year the District's auditors conduct a complete audit of the Financial Statements for
the twelve months beginning July 1, 2007 through June 30, 2008.
DISCUSSION:
Each year the District is required by law to have their books and records audited by an
Independent Certified Public Accountant. The District contracted with Diehl, Evans & Company,
LLP to perform the audit for the year ended June 30, 2008.
Representatives from Diehl, Evans & Company, LLP will attend the Board of Director's meeting
to make a presentation on the audit, discuss their management letter and present their findings.
The Audited Financial Statements for the twelve months of fiscal year 2007-2008 ending June
30, 2008 are attached to this report.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors reviewed the Audited Financial Statements for the period ending June
30, 2008 last December 13, 2007.
STAFF RECOMMENDATION:
That the Board of Directors receive and file the Audited Financial Statements for the twelve
months ending June 30, 2008.
COMMITTEE RECOMMENDATION:
The Finance-Accounting Committee met with the auditors on October 14, 2008 to review and
discuss the final draft. The Committee concurs with staffs' recommendation.
YORBA LINDA WATER DISTRICT
ANNUAL FINANCIAL REPORT
WITH REPORT ON AUDIT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
FOR THE YEAR ENDED JUNE 30, 2008
YORBA LINDA WATER DISTRICT
TABLE OF CONTENTS
June 30, 2008
Page
Number
INTRODUCTORY SECTION:
Letter of Transmittal
I
FINANCIAL SECTION:
Independent Auditors' Report
7
Management's Discussion and Analysis
9
Basic Financial Statements:
15
Statement of Net Assets
16
Statement of Revenues, Expenses and
Changes in Net Assets
18
Statement of Cash Flows
19
Notes to Basic Financial Statements
21
SUPPLEMENTAL INFORMATION:
43
Combining Schedule of Net Assets
44
Combining Statement of Revenues, Expenses and
Changes in Net Assets
48
Schedule of Operating Expenses by Cost Center and
Nature of Expenses for Water and Sewer
51
Schedule of Capital Assets
52
Independent Auditors' Report on Internal Controls Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditine Standards
55
INTRODUCTORY SECTION
Yorba Linda
Water District
September 20, 2008
Board of Directors
Yorba Linda Water District
Introduction
It is our pleasure to submit the Annual Financial Report for the Yorba Linda Water District for
the fiscal year ended June 30, 2008, following guidelines set forth by the Governmental
Accounting Standards Board. District staff prepared this financial report. The District is
ultimately responsible for both the accuracy of the data and the completeness and the fairness of
presentation, including all disclosures in this financial report. We believe that the data presented
is accurate in all material respects. The report is designed in a manner that we believe necessary
to enhance your understanding of the District's financial position and activities.
This report is organized into two sections: (1) Introductory and (2) Financial. The Introductory
section offers general information about the District's organization and current District activities
and reports on a summary of significant financial results. The Financial section includes the
Independent Auditors' Report, Management's Discussion and Analysis of the District's basic
financial statements, and the District's audited basic financial statements with accompanying
Notes.
Generally Accepted Accounting Principles (GAAP) requires that management provide a
narrative introduction, overview and analysis to accompany the financial statements in the form
of the Management's Discussion and Analysis (MD&A) section. This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The District's
MD&A can be found immediately after the Independent Auditors' Report.
District Administrative Offices
The District has recently moved their administrative offices from 4622 Plumosa Drive, Yorba
Linda, CA 92885 to 1717 E. Miraloma Avenue, Placentia, CA 92870 in April 2008. A new
District Headquarters building now provides the much needed room for the administrative staff,
it also puts administration and operations on the same campus.
District Structure and Leadership
The Yorba Linda Water District is an independent special district, which operates under the
authority of Division 12 of the California Water Code. The Yorba Linda Water District has been
providing water and sewer services to the residents of the City of Yorba Linda and surrounding
communities since 1959. The District is governed by a five-member Board of Directors, elected
at-large from within the District's service area. The General Manager administers the day-to-day
operations of the District in accordance with policies and procedures established by the Board of
Directors. The Yorba Linda Water District employs a full-time staff of 78 employees. The
District's Board of Directors meets on the second and fourth Thursday of each month. Meetings
are publicly noticed and citizens are encouraged to attend.
The District provides water, sewer or a combination of both services to residents and businesses
within its service area. The service area lies within most of the City of Yorba Linda and portions
of the cities of Anaheim, Brea, and Placentia. The District includes approximately 14,475 acres
of land comprising 22.6 square miles. The District serves a population of approximately 75,000
and currently provides service to approximately 23,600 residential, commercial, and agricultural
connections.
District Services
Residential customers are approximately 92% of the District's customer base and consume
approximately 72% of the water provided annually by the District. The District obtains about
half of its water supply from the Municipal Water District of Orange County and is
supplemented by groundwater wells within the area. In 2008 and 2007, the District provided
24,633 and 25,657 acre-feet of water, respectively.
Economic Condition and Outlook
The District's administrative offices are located in the City of Placentia in Orange County. The
economic outlook for the area is one of very slow growth, which is projected to continue through
2009 because of the ongoing financial crisis and the distressed housing market.
California's water supply continues to be a concern due to projected population increases and
drought conditions. This concern has increased focus on the need for conservation as well as
more efficient irrigation methods and systems.
In June 2008, the Governor issued Executive Order 5-06-08 declaring a statewide drought,
which directed his state agencies and departments, including the California Department of Water
Resources, to take immediate action to address the serious drought conditions and water delivery
reductions that exist in California.
The Yorba Linda Water District's Board of Directors voted on June 26, 2008 to approve a Water
Conservation Resolution that asks all customers within its service area to voluntarily reduce their
daily water usage by ten percent. The resolution is in response to California's drought
conditions, and outlines additional steps that the District will be taking to further educate
customers on ways to conserve.
The conservation request is currently voluntary in nature, but if water supplies continue to be
restrained and voluntary reductions do not occur, mandatory conservation may be implemented
as outlined in the District's 2005 Urban Water Management Plan.
In September 2008, the Department of Water Resources established a Drought Water Bank,
which will purchase water from willing sellers primarily north of the Sacramento-San Joaquin
Valley Delta. This water will then be transferred to areas in southern California that are at risk
of experiencing water shortages next summer.
Water Conservation Recommendations
Some ways residential customers can reduce their water use by ten percent voluntary
conservation include:
• Watering lawns one less day each week;
• Turning off water when not needed - while brushing teeth, while soaping up in the
shower, etc.;
• Washing your car at a commercial car wash which must recycle its water;
• Running dishwashers only when full and washers on the appropriate water setting, and
• Repairing all leaky facets and toilets.
Conservation education incentives outlined in the Water Proclamation include:
• Providing table-top placards to restaurants, informing customers that water will only be
served if requested;
• Working with the Placentia-Yorba Unified School District to provide added water
education programs;
• Working with local hotels to request long-term guests reuse towels and bed linens; and
• Encouraging customers to take advantage of rebates for certain conservation products.
The current water conservation programs that the District is sponsoring are outline below
and as new programs become available they can be found on the District's website
(www.vlwd.coin) under the tab at the top of page entitled "Conservation".
Water Conservation Programs
The District has implemented conservation management practices since the late 1980's. District
staff participates in community events and distributes materials to encourage water conservation.
The District offers the following conservation programs:
• Smart-Timer Irrigation Landscape Controller
• High Efficiency Clothes Washers
• High Efficiency Toilets
• Synthetic Turf
Major Initiatives
The activities of the Board and staff of the District are driven by its Mission Statement: "To
provide reliable, high quality water and sewer services in an environmentally responsible manner
at the most economical cost to our customers."
1. To supply clean, wholesome water to the community and provide water for the future.
2. To plan, construct, operate, maintain and upgrade the water system facilities to
adequately serve customer needs.
3. To utilize the District's financial resources in an effective and prudent manner.
3
4. To provide quality customer service for District customers.
5. To inform, educate, and communicate with the community on District and water issues
including conservation awareness.
6. To review and maintain a plan to be proactive in preventative maintenance of the
District's water and sewer systems.
All programs and operations of the District are developed and performed to provide the highest
level of services to its customers.
Internal Control Structure
District management is responsible for the establishment and maintenance of the internal control
structure that ensures the assets of the District are protected from loss, theft or misuse. The
internal control structure also ensures adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting principles.
The District's internal control structure is designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes that (l ) the cost of a control
should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits
requires estimates and judgments by management.
Budgetary Control
The District Board of Directors adopts an operating and capital budget every two-years. The
budget authorizes and provides the basis for reporting and control of financial operations and
accountability for the District's enterprise operations and capital projects. The budget and
reporting treatment applied to the District is consistent with the accrual basis of accounting and
the financial statement basis.
Investment Policy
The Board of Directors has adopted an investment policy that conforms to state law, District
ordinance and resolutions, prudent money management, and the "prudent person" standards.
The objective of the Investment Policy is safety, liquidity and yield.
Water and Sewer Rates and District Revenues
District policy direction ensures that all revenues from user charges and surcharges generated
from District customers must support all District operations including capital project funding.
Accordingly, water and sewer rates are reviewed periodically. Water rates are user charges
imposed on customers for services and are the primary component of the District's revenue.
Water rates are composed of a commodity (usage) charge and a fixed (readiness-to-serve)
charge. Sewer rates are composed of a fixed charge for typical residential usage and a
commercial rate based on proportionate water usage.
Audit and Financial Reporting
State Law and Bond covenants require the District to obtain an annual audit of its financial
statements by an independent certified public accountant. The accounting firm of Diehl, Evans
& Company, LLP has conducted the audit of the District's financial statements. Their
unqualified Independent Auditor's Report appears in the Financial Section.
Risk Management
The District is a member of the Association of California Water Agencies Joint Power Insurance
Authority (Authority). The purpose of the Authority is to arrange and administer programs of
insurance for the pooling of self-insured losses and to purchase excess insurance coverage.
Other References
More information is contained in the Management's Discussion and Analysis and the Notes to
the Basic Financial Statements found in the Financial Section of the report.
Acknowledgements
Preparation of this report was accomplished by the combined efforts of District staff. We
appreciate the dedicated efforts and professionalism that these staff members contribute to the
District. We would also like to thank the members of the Board of Directors and especially the
Finance-Accounting Committee members for their continued support in planning and
implementation of the Yorba Linda Water District's fiscal policies.
Respectfully submitted,
Michael A. Payne
General Manager
-Diane C2ygani
Finance Direct
This page intentionally left blank
-6-
FINANCIAL SECTION
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS 6T CONSULTANTS
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606.5165
(949) 399-0600 . FAX (949) 399-0610
www. di eh levans.coJn
September 20, 2008
INDEPENDENT AUDITORS' REPORT
Board of Directors
Yorba Linda Water District
Yorba Linda, California
MICHAEL. R. LUDIN. CPA
CRAIG W. SPRAKER, CPA
NIPIN P. PATEL CPA
I(OBER"I 1. CALLANAN. CPA
"PHILIP H. HOI:IKAMP. CPA
•I'llOMAS M. PERLOWSKI, CPA
HARVEY J. SCHROEDIR. CPA
KENNETH R. AMES. CPA
-WILLIAM C. PENT7. CPA
"A PROFF~ 510NAL. CORPORATION
We have audited the basic financial statements of the Yorba Linda Water District (the District) as of
and for the year ended June 30, 2008 as listed in the table of contents. These basic financial statements
are the responsibility of the District's management. Our responsibility is to express an opinion on
these basic financial statements based on our audit,
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the basic financial statements referred to above present fairly, in all material respects,
the financial position of Yorba Linda Water District as of June 30, 2008 and the results of its operations
and cash flows for the year then ended in conformity with accounting principles generally accepted in
the United States of America.
In accordance with Government Auditine Standards, we have also issued our report dated
September 20, 2008 on our consideration of the District's internal control over financial reporting and
our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditine Standards and should be considered in assessing
the results of our audit.
-7-
OTIIER OFFICES AT: 2965 ROOSEVELT STREET 60 W. VALLEY PARKWAY, SUITE 330
C'ARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO. CALIFORNIA 92025-2598
(760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890
The management's discussion and analysis identified in the accompanying table of contents is not a
required part of the basic financial statements but is supplementary information required by accounting
principles generally accepted in the United States of America. We have applied certain limited
procedures to the management's discussion and analysis, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of this required supplementary
information. However, we did not audit the management's discussion and analysis and express no
opinion on it.
Our audit was conducted for the purpose of forming an opinion on the District's basic financial
statements. The Introductory Section is presented for purpose of additional analysis and is not a
required part of the basic financial statements. The Introductory Section has not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express
no opinion on it.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a
whole. The supplementary information listed in the table of contents is presented for purposes of
additional analysis and is not a required part of the basic financial statements of the District. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
-8-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the year ended June 30, 2008
The following Management's Discussion and Analysis (MD&A) of activities and financial
performance of the Yorba Linda Water District (District) provides an introduction to the financial
statements of the District for the fiscal years ended June 30, 2008 and 2007. We encourage readers to
consider the information presented here in conjunction with the transmittal letter in the Introductory
Section and with the basic financial statements and related notes, which follow this section.
Financial Highlights
Water Services
• The District's Water Services 2008 operating loss was ($3,762,110) or $1,463,567 more than
the District's Water Services 2007 operating loss of ($2,298,543).
The District's Water Services 2008 net loss before capital contributions was ($1,369,227) or
($1,566,482) greater than the District's Water Services 2007 net income before capital
contributions of $197,255.
Sewer Services
• The District's Sewer Services 2008 operating loss was ($172,106) or $206,022 less than the
District's Sewer Services 2007 operating loss of ($378,128).
The District's Sewer Services 2008 net loss before capital contributions was ($128,358) or
$147,304 less than the District's Sewer Services 2007 net loss before capital contributions of
($275,662).
Required Financial Statements
This annual report consists of a series of financial statements. The Statement of Net Assets, Statement
of Revenues, Expenses and Changes in Net Assets and Statement of Cash Flows provide information
about the activities and perfonnance of the District using accounting methods similar to those used by
private sector companies.
The District's statements consist of four funds, the Water Fund, the Sewer Fund, Improvement District
No. 1, and Improvement District No. 2. The District's records are maintained on an enterprise basis, as
it is the intent of the Board of Directors that the costs of providing water and sewer to the customer of
the District are financed primarily through user charges.
See independent auditors' report.
-9-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the year ended June 30, 2008
Required Financial Statements (Continued)
The Statement of Net Assets includes all of the District's investments in resources (assets) and the
obligations to creditors (liabilities). It also provides the basis for computing a rate of return, evaluating
the capital structure of the District and assessing the liquidity and financial flexibility of the District.
All of the current year's revenue and expenses are accounted for in the Statement of Revenues,
Expenses and Changes in Net Assets. This statement measures the success of the District's operations
over the past year and can be used to determine if the District has successfully recovered all of its costs
through its rates and other charges. This statement can also be used to evaluate profitability and credit
worthiness. The final required financial statement is the Statement of Cash Flows, which provides
information about the District's cash receipts and cash payments during the reporting period. The
Statement of Cash Flows reports cash receipts, cash payments and net changes in cash resulting from
operations, investing, non-capital financing, and capital and related financing activities and provides
answers to such questions as where did cash come from, what was cash used for, and what was the
change in cash balance during the reporting period.
Financial Analysis of the District
One of the most important questions asked about the District's finances is, "Is the District better off or
worse off as a result of this year's activities?" The Statement of Net Assets and the Statement of
Revenues, Expenses and Changes in Net Assets report information about the District in a way that
helps answer this question. These statements include all assets and liabilities using the accrual basis of'
accounting, which is similar to the accounting used by most private sector companies. All of the
current year's revenues and expenses are taken into account regardless of when the cash is received or
paid.
These two statements report the District's net assets and changes in them. You can think of the
District's net assets (the difference between assets and liabilities), as one way to measure the District's
financial health, or financial position. Over time, increases or decreases in the District's net assets are
one indicator of whether its financial health is improving or deteriorating. However, one will need to
consider other non-financial factors such as changes in economic conditions, population growth,
zoning and new or changed government legislation, such as changes in Federal and State water quality
standards.
See independent auditors' report.
-10-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the year ended. June 30, 2008
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the basic financial statements. The notes to the basic financial statements can be found on pages 21
through 42.
Statement of Net Assets
Condensed Staternentsof Net Assets
2008
2007
Change
Assets:
Current assets
$ 16,306,313
$ 23,682,132
$ (7,375,819)
Restricted assets
47,347,291
23,528,786
23,818,505
Non-current assets
845,507
245,992
599,515
Capital assets, net
153,073.196
131,387,296
21,685.900
Total Assets
- 217,572,307
178,844,206
_ 38,72, lOl
Liabilities:
Liabilities payable from unrestricted current assets
7,565,306
7,529,851
35,455
Liabilities payable from restricted assets
1,287,195
484,261
802,934
Non-current liabilities
59.417.241
24.607.929
34.809.312
Total Liabilities
68,269,742
_ 32,622,Q4]..
_ 35,647,701.
Net Assets:
Invested in capital assets, net of related debt
139,677,663
130,994,777
8,682,886
Restricted
14,523,549
13,719,192
804,357
Unrestricted
(4,898.647)
1,508,196
(6,406.8431
Total Net Assets
$149,302,565
$146,222,165
$ 3,080,400
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the District, assets of the District exceeded liabilities by $149,302,565 and
$146,222,165 as of June 30, 2008 and 2007, respectively.
By far the largest portion of the District's net assets (94% and 90% as of June 30, 2008 and 2007,
respectively) reflects the District's investment in capital assets (net of accumulated depreciation) less
any related debt used to acquire those assets that is still outstanding. The District uses these capital
assets to provide services to customers within the District's service area; consequently, these assets are
not available for future spending.
See independent auditors' report.
-11-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the year ended June 30, 2008
Statement of Net Assets (Continued)
At the end of fiscal year 2008, the District showed a negative balance in its unrestricted net assets of
$4,898,647 which indicates that there aren't any reserves to be utilized in future years as compared to a
positive balance of $1,508,196 at the end of fiscal year 2007.
Statement of Revenues, Expenses and Changes in Net Assets
Condensed Statements of Revenues, Expenses and Changes in Net Assets
2008
2007
Change
Revenues:
Operating revenues
$ 20,267,913 $
20,144,415 $
123,498
Non-operating revenues
3,872,556
3,821,575
50,981
Total Revenues
24,140,469_
23,965,990
174,479
Expenses :
Operating expenses
20,629,403
19,375 218
1,254,185
Depreciation
3,572,726
3,445,868
126,858
Non-operating expenses
957,991
606,588
351,403
Total Expenses
25,160,120
_ 23,427,674
1,732,446
Net Income(Loss) before
Capital Contributions
(1,019,651)
538,316
(1,557,967)
Cap it al contributions
4,100,051
6,913,095
(2,813,044)
Change in net assets
3,080,400
7,451,411
(4,371,011)
Net assets, beginning of year
146,222,165
138,770,754
7,451,411
Net assets, end of year
$ 149,302,565 $
146,222,165 $
3,080,400
The statement of revenues, expenses and changes of net assets shows how the District's net assets
changed during the fiscal years. In the case of the District, net assets increased by $3,080,400 and
$7,451,411 for the fiscal years ended June 30, 2008 and 2007, respectively.
A closer examination of the sources of changes in net assets reveals that:
In 2008, the District's total revenues increased by $174,479, primarily due to an increase in operating
revenues of $123,498 from increased water and sewer services. Additionally, non-operating revenues
net increase of $50,981, included, a decrease by $779,297 primarily due to lower interest rates and
more use of cash on extensive projects and an increase of $830,278 due to water sales that are
restricted for debt service. In addition, total expenses increased by $1,732,446, due to increases in
imported water costs, groundwater replenishment, and departmental and operational expenses.
See independent auditors' report.
-12-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the year ended June 30, 2008
Statement of Revenues, Expenses and Changes in Net Assets (Continued)
In 2007, the District's total revenues increased by $3,492,400, primarily due to an increase in operating
revenues of $4,965,948 from increased water and sewer services. Additionally, non-operating
revenues increased by $1,526,452 primarily due to higher interest rates and gains on investments. In
addition, total expenses increased by $3,252,287, due to increases in imported water costs,
groundwater replenishment, and departmental and operational expenses.
Capital Assets
At the end of fiscal year 2008 and 2007, the District's investment in capital assets amounted to
$153,073,196 and $1.31,387,296, respectively, (net of accumulated depreciation). This investment in
capital assets includes land, transmission and distribution systems, reservoirs, tanks, pumps, buildings
and structures, equipment, vehicles and construction-in-process, etc. Major capital assets additions
during the year included upgrades to the District's pumping plant and the transmission and distribution
system.
Changes in capital asset amounts for 2008 were as follows
Balance
Transfers/
Balance
2007
Additions
Deletions
2008
Capital assets:
Capital assets, not being depreciated
$
19,036,654
$
21,433,164
$
(10,437,109) $
30,032,709
Capital assets, being depreciated
152,822,705
14266,477
(2,486,982)
164,602,200
Less accumulated depreciation
(40,472,063)
(3,572,726)
2,483,076
(41,561,713)
Total capital assets, net
$
131,387,296
$
32,126,915
$
(10,441,015) $
153,073,196
Changes in capital asset amounts for 2007 were as
follows:
Balance
Transfers/
Balance
2006
Additions
Deletions
2007
Capital assets:
Capital assets, not being depreciated
$
8,680,187
$
10,51 1,754
$
(155,287) $
19,036,654
Capital assets, being depreciated
145,039,254
7,842,360
(58,909)
152,822,705
Less accumulated depreciation
(37,067,758)
(3,445,868)
41,563
(40,472,063)
Total capital assets, net
$
116,651,683
$
14,908,246
$
(172,633) $
131,387,296
Additional information regarding capital assets can be found in Note 5 to the financial statements.
See independent auditors' report.
-13-
YORBA LINDA WATER DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
(CONTINUED)
For the year ended June 30, 2008
Long-term Liabilities
Changes in long-term liabilities for the year ended June 30, 2008 were as follows:
Beginning
Ending
Balance
Additions
Reductions
Balance
2003 Revenue Certificates
of Part icipation
$ 10,070,000 $
- $
(210,000) S
9,860,000
2008 Revenue Certificates
of Participation
-
34,995,000
-
34,995,000
Subtotal
10,070,000
34,995,000
(210,000)
44,855,000
Add(l.ess):
Discount
(142,148)
-
5,433
(136,715)
Premium
-
792,602
(8,807)
783,795
Total
$ 9,927,852 $
35,787,602 $
(213,374) $
- . .
45,502,080
Additional information regarding long-term debts can be found in Note 7 to the financial statements.
Conditions Affecting Current Financial Position
Management is unaware of any conditions that would have a significant impact on the District's
financial position, net assets, or operating results in terms of past and present. But with the ongoing
worldwide financial crisis it is unknown as to the impact it will have, if any, in the future. However,
the District will continue to operate in a financially prudent and stable manner.
Requests for Information
This financial report is designed to provide the District's funding sources, customers, stakeholders and
other interested parties with an overview of the District's financial operations and financial condition.
Should the reader have questions regarding the information included in this report or wish to request
additional financial information, please contact the District at 1717 E. Miraloma Avenue, Placentia,
California 92807 or the Finance Department at (714) 701-3040.
See independent auditors' report.
-14-
BASIC FINANCIAL STATEMENTS
-15-
YORBA LINDA WATER DISTRICT
STA'l FMFN'I OF NET ASSETS
June 30, 2008
(With comparative totals as of June 30, 2007)
ASSETS
2008
2007
CURRENT ASSETS:
UNRESTRICTED ASSETS:
Cash and investments (Note 3)
$ 758,083
$ 2,392,542
Cash and investments - annexation (Note 3)
9,630,056
16,075,056
Accrued interest receivable
30,329
125,656
Accounts receivable - water and sewer services, net
4,643,394
4,517,785
Accounts receivable - property taxes
26,848
22,651
Construction advances and deposits
643,814
Inventory
397,985
374,176
Prepaid expenses and other deposits
175,804
174,266
TOTAL UNRESTRICTED ASSETS
161306,313
23,682,132
RESTRICTED ASSETS:
Cash and investments with fiscal agent (Note 3)
47,301,937
23,502,837
Accrued interest receivable
45,354
25,949
TOTAL RESTRICTED ASSETS
47,347,291
23,528,786
TOTAL CURRENT ASSETS
63,653,604
47.210.918
NONCURRENT ASSETS:
CAPITAL ASSETS (NOTE 5):
Capital assets, not being depreciated
30,032,709
19,036,654
Capital assets, being depreciated
164,602,200
152,822,705
Less accumulated depreciation
(41,561,713)
(40,472,063)
TOTAL CAPITAL ASSETS, NET
153,073,196
131,387,296
OTHER ASSETS:
Deferred charges, net
845,507
245,992
TOTAL NONCURRENT ASSETS
153,918,703
131,633,288
TOTAL ASSETS
217,572,307
178,844,206
See independent auditors' report and notes to basic financial statements. (Continued)
-16-
YORBA LINDA WATER DISTRICT
STATEMENT OF NET ASSETS
(CONTINUED)
June 30, 2008
(With comparative totals as of June 30, 2007)
LIABILITIES
CURRENT LIABILITIES:
PAYABLE FROM UNRESTRICTED CURRENT ASSETS:
Accounts payable and accrued expenses
Accrued salaries and wages
Accrued compensated absences (Note 6)
Customer and other deposits
Construction advances and deposits
Deferred credits
TOTAL PAYABLE FROM UNRESTRICTED CURRENTASSETS
PAYABLE FROM RESTRICTED ASSETS:
Construction bonding deposits
Accrued interest payable
Prepaid connection fees
Certificates of Participation - current portion (Note 7)
TOTAL PAYABLE FROM RESTRICTED ASSETS
TOTAL CURRENT LIABILITIES
LONG-TERM LIABILITIES (LESS CURRENT PORTION) (NOTE 7):
Deferred annexation revenue
Certificates of Participation (Note 7)
TOTAL LONG-TERM LIABILITIES (LESS CURRENT PORTION)
TOTAL LIAB11.I1 IES
NET ASSETS:
Invested in capital assets, net of related debt (Note 8)
Restricted
Unrestricted
TOTAL NET ASSETS
2008 2007
$ 5,905,218
$ 5,740,638
83,655
70,813
461,979
445,477
406,540
380,371
-
34,273
707,914
858,279
7,565,306
7,529,851
130,154
150,176
579,722
116,766
7,319
7,319
570,000
210,000
1,287,195
484,261
8,852,501
8,014,112
14,485,161
14,890,077
44,932,080
9,717,852
59,417,241
24,607,929
68,269,742
32,622,041
13 9,677,663 130,994.777
14,523,549 13,719,192
(4,898,647) 1,508,196
$ 149,302,565 $ 146,222,165
See independent auditors' report and notes to basic financial statements.
-17-
YORBA LINDA WATER DISTRICT
STATEMENT OF REVENUES. EXPENSES
AND CHANGES IN NET ASSETS
For the year ended June 30, 2008
(With comparative totals for the year ended June 30, 2007)
2008
2007
OPERATING REVENUES:
Metered water sales
$ 18,227,040
$ 18,489,306
Sewer maintenance charges
1,247.907
806,897
Construction water sales
292,117
332,893
Irrigation sales
78,340
78,897
Customer service fees
160,225
139,911
Rents and royalties
49,605
41,442
Outside of District water sales
32.518
38.876
Unmetered water sales
9,816
4.261
Other charges and services
170,345
211,932
TOTAL OPERATING REVENUES
20,267,913
20,144,415
OPERATING EXPENSES:
Variable water cost
10,516,507
10,703,037
Personnel services
5.751,384
5.276,878
Supplies and services
4,361.512
3395.303
TOTAL OPERATING EXPENSES
20,629,403
19,375,218
OPERATING INCOME BEFORE DEPRECIATION
(361.490)
769,197
DEPRECIATION
3,572,726
3,445,868
OPERATING LOSS
(3.934.216)
(2,676,671)
NONOPERATING REVENUES (EXPENSES):
Property taxes - debt service
5,713
5,509
Property taxes - operations
1,257,943
1,180,932
Interest and investment earnings
1,508,193
2.180,067
Other nonoperating revenues
270.429
455.067
Water sales restricted for debt service
830,278
-
Interest expense
(824,387)
(468,087)
Other expense
(133,604)
(138.501)
TOTAL NONOPERATING REVENUES (EXPENSES)
2.914,565
3,214.987
NET INCOME. (LOSS) BEFORE CAPITAL CONTRIBUTIONS
(1,019,651)
538,316
CAPITAL CONTRIBUTIONS
4,100,051
6,913,095
CHANGES IN NET ASSETS
3.080.400
71451,411
NET ASSETS - BEGINNING OF YEAR
146,22-2. 165
138,770,754
NET ASSETS - END OF YEAR
$ 149,302.565
$ 146.222.165
See independent auditors' report and notes to basic financial statements.
- 1.8 -
YORBA LINDA WATER DISTRICT
STATEMENT OF CASH FLOWS
For the year ended June 30, 2008
(With comparative totals for the year ended June 30, 2007)
2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 20,959,151
Cash payments to employees for salaries and wages (5.722,039)
Cash payments to suppliers of goods and services (14,699,187)
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Proceeds from property taxes and assessments
Otherrevenue
Other expenses
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Property taxes received for debt service
Proceeds from capital contributions
Development fees received from developers
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Proceeds from bond issuance
Bond premium
Payment of bond issuance costs
Principal paid on long-term liability
Interest paid on long-term liability
Proceeds from deposits and advances for construction
NET CASH PROVIDED (USED) BY CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale/purchase of investments, net
Interest and investment earnings
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS - END OF YEAR
537.925
1,253,746
270.836
(111,929)
1.412.653
5,713
30,048
(21,653,453)
3,499
34,995,000
792,602
(615,757)
(210,000)
(464,595)
(698,109)
12.184,948
11,129,037
1,379,743
12,508,780
26,644,306
23,976,149
2007
$ 19,349,053
(5,252,865)
(12,024,466)
?,071,722
1,182,744
1,182,744
5,509
1,111,145
455,067
(7.842,358)
(205,000)
(468,087)
(695,098)
(7,638,822)
(6,141,276)
2,180,067
(3.961.209)
(8,345,565)
32,321,714
$ 50.620,455 $ 23,976,149
See independent auditors' report and notes to basic financial statements. (Continued)
-19-
YORBA LINDA WATER DISTRICT
STATEMENT OF CASH FLOWS
(CONTINUED)
For the year ended June 30, 2008
(With comparative totals for the year ended June 30, 2007)
2008
2007
RECONCILIATION OF OPERATING LOSS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating loss
$ (3,934,216)
$ (2.676,671)
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation
3,572,726
3,445,868
Water sales restricted for debt service
830,278
-
Changes in operating assets and liabilities:
(Increase) decrease in assets:
Accounts receivable
(125,609)
(797,017)
Inventory
(23,809)
(46,848)
Prepaid expenses and other deposits
(1,538)
19,687
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
164,580
3,069,148
Accrued salaries and wages
12.842
24,013
Accrued compensated absences
16,502
9,385
Customer and other deposits
26,169
-
Construction advances and deposits
(618,059)
Deferred revenue
-
(357,784)
Total adjustments
4,472,141
4,748,393
NET CASH PROVIDED BY OPERATING ACTIVITIES
$ 537,925
$ 2,071,722
NONCASH INVESTING, CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital contributions
$ 3,514,722
$
See independent auditors' report and notes to basic financial statements.
-20-
NOTES TO BASIC FINANCIAL STATEMENTS
-21-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2008
1. ORGANIZATION AND DESCRIPTION OF THE REPORTING ENTITY:
The Yorba Linda Water District (the District) is an independent special district established in 1959,
which operates under the authority of Division 12 of the California Water Code for the purpose of
providing water and sewer services to the properties within the District. The District is governed
by a five member board of Directors elected by the voters in the area to four-year terms. The
District utilizes four districts which include Water, Sewer, Improvement District No. 1 and
Improvement District No. 2. Water is provided to the entire service area. Sewer is provided to
about two-thirds of the service area. Improvement District No. 1 provides capital facilities to an
area of approximately 4,700 acres. Improvement District No. 2 provides capital facilities to an
area of approximately 3,200 acres. The District's service area includes Yorba Linda and portions
of Placentia, Anaheim, Brea, and areas of unincorporated Orange County. The District provides
water and sewer service to approximately 67,000 residents.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Basic Financial Statements:
The basic financial statements are comprised of the Comparative Statements of Net Assets, the
Comparative Statements of Revenues, Expenses and Changes in Net Assets, the Comparative
Statements of Cash Flows and the notes to the basic financial statements,
b. Basis of Presentation:
The accounts of the District are an enterprise fund. An enterprise fund is a Proprietary type
fund used to account for operations (a) that are financed and operated in a manner similar to
private business enterprises - where the intent of the governing body is that the costs
(expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital maintenance, public policy, management control,
accountability or other purposes. The District has elected under Governmental Accounting
Standards Board (GASB) Statement 20, Accounting and Financial Reporting for Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all
GASB pronouncements as well as any applicable pronouncements of the Financial Accounting
Standards Board (FASB), the Accounting Principles Board (APB), or any Accounting Research
Bulletins (ARB) issued on or before November 30, 1989, unless they contradict or conflict
with GASB pronouncements.
See independent auditors' report.
-22-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting:
Measurement focus is a term used to describe "which" transactions are recorded within the
various financial statements. Basis of accounting refers to "when" transactions are recorded
regardless of the measurement focus applied. The accompanying financial statements are
reported using the "economic resources measurement focus", and the "accrual basis of
accounting". Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows.
d. Net Assets:
In the Statement of Net Assets, net assets are classified in the following categories:
• Invested in capital assets, net of related debt - This amount consists of capital assets net of
accumulated depreciation and reduced by outstanding debt that is attributed to the
acquisition, construction, or improvement of the assets.
• Restricted net assets - This amount is restricted by external creditors, grantors, contributors,
or laws or regulations of other governments.
• Unrestricted net assets - This amount is all net assets that do not meet the definition of
"invested in capital assets, net of related debt" or "restricted net assets".
When both restricted and unrestricted resources are available for use, the District may use
restricted resources or unrestricted resources based on the Board's discretion.
e. Operating Revenues and Expenses:
Operating revenues, such as charges for services (water sales) result from exchange
transactions associated with the principal activity of the District. Nonoperating revenues, such
as property taxes and assessments, and investment income, result from nonexchange
transactions or ancillary activities in which the District gives (receives) value without directly
receiving (giving) equal value in exchange.
Operating expenses include the cost of sales and services, administrative expenses and
depreciation on capital assets. All expenses not meeting this definition are reported as
nonoperating expenses.
See independent auditors' report.
-23-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
f. Cash and Cash Equivalents:
Substantially all of the District's cash is invested in interest bearing accounts. The District
considers all highly liquid investments with a maturity of three months or less at the time of
purchase to be cash equivalents.
g. Investments and Investment Policy:
The District has adopted an investment policy directing the District's General Manager to
deposit funds in financial institutions.
Investments are stated at fair value which represents the quoted or stated market value.
Changes in fair value that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings, changes in fair
value, and any gains or losses realized upon the liquidation or sale of investments.
h. Accounts Receivable:
The District extends credit to customers in the normal course of operations. Management has
evaluated the accounts and believes they are all collectible. Management evaluates all
accounts receivable and if it is determined that they are uncollectible they are written off as a
bad debt expense, A charge of $13,431 and $13,713 were made to bad debt expense for the
fiscal years ended June 30, 2008 and 2007, respectively.
i. Property Taxes and Assessments:
The Orange County Assessor's Office assesses all real and personal property within the County
each year. The Orange County Tax Collector's Office bills and collects the District's share of
property taxes and assessments. The Orange County Treasurer's Office remits current and
delinquent property tax collections to the District throughout the year. Property taxes in
California are levied in accordance with Article XIIIA of the State Constitution at I °r/0 of
countywide assessed valuations. This levy is allocated pursuant to state law to the appropriate
units of local governments.
See independent auditors' report.
-24-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
i. Property Taxes and Assessments (Continued):
Property taxes receivable at year-end are related to property taxes collected by the Orange
County Tax Collector which have not been credited to the District's cash balance as of June 30.
The property tax calendar is as follows:
Lien Date:
Levy Date:
Due Dates:
Collection Dates:
j. Prepaid Expenses:
January 1
March 1
First Installment - November 1
Second Installment - March 1
First Installment - December 10
Second Installment - April 10
Certain payments to vendors reflects costs or deposits applicable to future accounting periods
and are recorded as prepaid items in the basic financial statements.
k. Materials and Supplies Inventory:
Inventory consists primarily of materials and supplies used in the construction and
maintenance of the water and sewer systems and are stated at cost using the average-cost
method on a first in, first out basis.
1. Capital Assets:
Capital assets acquired and/or constructed are capitalized at historical cost. District policy has
set the capitalization threshold for reporting capital assets at $5,000. Contributed assets are
recorded at estimated fair market value at the date of contribution. Upon retirement or other
disposition of capital assets, the cost and related accumulated depreciation are removed from
the respective balances and any gains or losses are recognized. Depreciation is recorded on the
straight-line basis over the estimated useful lives of the assets as follows:
Source of Supply 30 to 75 years
Pumping Plant 20 to 40 years
Water Treatment Plant 12 to 40 years
Transmission and Distribution Plant 5 to 60 years
General Plant 3 to 40 years
See independent auditors' report.
-25-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CON'T'INUED):
m. Bond Issuance Costs:
Bond issuance costs are amortized on a straight-line methodology based on the estimated tern
of the related bond debt. Bond issuance costs were $845,507 and $245,992 net of accumulated
amortization of $52,278 and $36,035 at June 30, 2008 and 2007, respectively.
n. Interest Expense:
The District incurs interest charges on the Certificates of Participation. Interest expense of
$94,357 has been capitalized as an addition to the cost of construction for the year ended
June 30, 2008.
o. Compensated Absences:
The District's policy is to permit employees to accumulate earned vacation and sick leave. The
liability for vested vacation and sick leave is recorded as an expense when earned. Employees
may carry forward up to one and one-half years of earned vacation days and an unlimited
number of sick leave days.
Upon termination or retirement, permanent employees are entitled to receive compensation at
their current base salary for all unused vacation leave except for those employees that have not
completed the probationary period.
Permanent employees that retire in accordance with the Public Employee's Retirement System
qualifications are entitled to receive compensation at their current base salary for three-eights
of all unused sick leave.
p. Deferred Credits:
Deferred credits represent customer refunds that have not been cashed.
q. Construction Advances and Deposits:
Construction deposits are collected by the District to cover the cost of construction projects
within the District. Funds in excess of project costs are refunded to the customer.
r. Construction Bonding Deposits:
The District's policy is to maintain certain bonding requirements for water and sewer
construction projects perfonned within District boundaries to ensure the proper completion of
the project. Deposited amounts are refunded upon final approval of the project.
See independent auditors' report.
-26-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 200&
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
s. Prepaid Connection Fees:
Connection fees are collected by the District to cover the cost of service connections within the
District. Funds in excess of connection costs are refunded to the customer.
t. Deferred Annexation Revenue:
The District collects a fee from newly annexed developments for all residential and
commercial properties. This fee is in-lieu of the District's share of the 1% property tax revenue
which the District no longer received post-Proposition 13. The fee is a present worth value
required to generate a forty year revenue stream equivalent to the lost property tax revenue, It
is calculated based on the fair market value estimate of the improved property at the time the
fee is collected and based on the current rate of return on the District's investments. The
deposit balance accrues interest and provides a source of operational revenue for the District.
This deferred revenue source may be used for capital facilities in the future if approved by the
Board.
u. Water and Sewer Sales:
The District recognizes water and sewer service charges based on cycle billings rendered to the
customers each month.
v. Capital Contributions:
Capital contributions represent cash and capital asset additions contributed to the District by
property owners or real estate developers desiring services that require capital expenditures or
capacity commitment.
w. Budgetary Policies:
The District adopts a two-year nonappropriated budget for planning, control and evaluation
purposes. Budgetary control and evaluation are affected by comparisons of actual revenues
and expenses with planned revenues and expenses for the period. Encumbrance accounting is
not used to account for commitments related to unperformed contracts for construction and
services.
See independent auditors' report.
-27-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
x. Reclassification:
Certain prior year information has been reclassified to conform with the current year financial
statement presentation.
y. Use of Estimates:
The financial statements are prepared in conformity with accounting principles generally
accepted in the United States of America and, accordingly, include amounts that are based on
management's best estimates and judgments. Accordingly, actual results could differ from the
estimates.
3. CASH AND INVESTMENTS:
Cash and Investments:
Cash and investments as of June 30, 2008 are reported in the accompanying comparative
statements of net assets as follows:
Current Assets:
Cash and investments
Cash and investments - annexation
Restricted Assets:
Cash and investments with fiscal agent
Total Cash and Investments
Improvement Improvement
District District
Water Sewer No.I No.2 Total
$ (545,955) $ 1,304,038 $ - $ - $ 758,083
9,630,056 - - - 9,630.056
33.733.651 4.128.550 9.439,736 47.301.937
42,8.17.,752 $ .1.304,(?, $--4.128.550, 943276 57.}C9Q,076
Cash and investments as of June 30, 2008 consisted of the following:
Cash on hand
Deposits with financial institutions
Investments
Total Cash and Investments
See independent auditors' report.
Improvement
Improvement
District
District
Water
Sewer
No.I
No.2
Total
$ 1,200 $
-
$ -
$ -
$ 1,200
(773,386)
827.356
1,224.205
963,796
2,241,971
43.589.938
476.682
1904.345
8.475.940
55.446.905
S-42.817-7-52 S--
-1.199 ~3- .
A 1?8.550
S-9-4 39.73.6
S-5100.076
-28-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
3. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by the California Government Code and the District's Investment
Policy:
The table below identifies the investment types that are authorized for the District by the California
Government Code (or the District's investment policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the District's investment
policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit
risk.
This table does not address investments of debt proceeds held by bond trustees that are governed
by the provisions of debt agreements of the District, rather than the general provisions of the
California Government Code or the District's investment policy.
Maximum
Maximum
Maximum
Percentage
Investment
Authorized Investment Tvae
Maturitv
of Portfolio *
in One Issuer
Bank or Savings and Loans
5 years
None
None
Local Agency Investment Fund (LAIF)
N/A
None
$10 million
Orange County Commingled Investment Pool
N/A
None
$10 million
California Asset Management Program
N/A
None
None
U.S Treasury Bills, Notes and Bonds
5 years
None
None
U.S. Government Sponsored
Enterprise Securities
5 years
50%
None
Corporate Bonds
5 years
30%
None
Bankers Acceptances
180 days
10%
30%
Commercial Paper
270 days
25%
10%
* Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
N/A - Not Applicable
See independent auditors' report.
-29-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
3. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by Debt Agreements:
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the District's
investment policy. The table below identifies the investment types that are authorized for
investments held by bond trustees. The table also identifies certain provisions of these debt
agreements that address interest rate risk and concentration of risk.
Authorized Investment Tvpe
Cash
U.S. Treasury Bills, Notes and Bonds
U.S. Treasury Obligations
Resolution Funding Corp. (REFCORP)
Prefunded Municipal Bonds
U.S. Government Sponsored
Enterprise Securities
Commercial Paper
Money Market Funds
Certificates of Deposits
Guaranteed Investment Contracts
Bankers Acceptance
Repurchase Agreements
Local Agency Investment Fund
Maximum
Maximum
Maximum
Percentage
Investment
Maturitv
Allowed
in One Issuer
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
1 year
None
None
30 days
None
None
None
None
None
Disclosures Relating to Interest Rate Risk:
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the District manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity as necessary to provide the cash flow and liquidity needed for
operations.
See independent auditors' report.
-30-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
3. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Interest Rate Risk (Continued):
Information about the sensitivity of the fair values of the District's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the District's investments by maturity as of June 30, 2008.
Remaining Maturity
(in Months)
Investment Tvne
Money market funds
Commercial paper
California Asset Management Program
U.S. Government Sponsored Enterprise Securities
Corporate obligations
Held by bond trustee:
Money market funds
Disclosures Relating to Credit Risk:
12 Months
Total
or Less
9,687,233
$ 9,687,233
2,495,462
2,495,462
6,583,504
6,583,504
995,900
995,900
3,578,259
3,578,259
32.106.547 32,106.547
$55.446-905 S ,55.446,E
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented in the following table are the minimum rating
required by (where applicable) the California Government Code, the District's investment policy,
or debt agreements, and the actual Standard and Poor's credit rating as of year end for each
investment type.
Investment Tvne
Money market funds
Commercial paper
Calitomia Asset Management
Program
U.S. Government Sponsored
Enterprise Securities
Corporate obligations
Held by bond trustee:
Money market funds
Minimum
Leval Ratine,_
AAA S
A-1
N/A
AA
A
AAA
Total AAA AA- A+ A A-1
9,687-233 S 9,687,233 S S S S
2,495,462 - 2,495,462
6,583,504 6,583,504
995,900 995,900
3.579.259 - 1,099,543 1.146.082 1,332,634
32106-547 32.106.547
.4 ] 499 54~ S!._I46,0 ? $l 332.!x 3 b' I` ?,46M
'..:_.5...44k 90 S....-A-9-1-7-3-L84
See independent auditors' report.
-31 -
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
3. CASH AND INVESTMENTS (CONTINUED):
Concentration of Credit Risk:
The investment policy of the District contains no limitations on the amount that can be invested in
any one issuer beyond that stipulated by the California Government Code.
Custodial Credit Risk:
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, the District will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, the District will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. With respect to investments, custodial credit
risk generally applies only to direct investments in marketable securities. Custodial credit risk does
not apply to a local government's indirect investment in securities through the use of mutual funds
or government investment pool (such as LAIF).
The California Government Code and the District's investment policy do not contain legal or
policy requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government Code
requires that a financial institution secure deposits made by state or local governmental units by
pledging securities in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public agencies.
California law also allows financial institutions to secure District deposits by pledging first trust
deed mortgage notes having a value of 150% of the secured public deposits. The District had
deposits with bank balances of $1,722,724 and $872,197 as of June 30, 2008 and 2007,
respectively. Of the bank balances, up to $100,000 is federally insured and the remaining balance
is collateralized in accordance with the Code; however, the collateralized securities are not held in
the District's name.
Investment in State Investment Pool
The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the Treasurer of
the State of California. The fair value of the District's investment in this pool is reported in the
accompanying financial statements at amounts based upon the District's pro-rata share of the fair
value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that
portfolio). The balance available for withdrawal is based on the accounting records maintained by
LAIF, which are recorded on an amortized cost basis.
See independent auditors' report.
-32-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
3. CASH AND INVESTMENTS (CONTINUED):
Investment in California Asset Management Program:
The California Asset Management Program (the CAMP) is a public joint powers authority which
provides California Public Agencies with investment management services for surplus funds and
comprehensive investment management, accounting and arbitrage rebate calculation services for
proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a
short-term investment portfolio, as a means for Public Agencies to invest these funds. Public
Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants
may also establish individual, professionally managed investment accounts (Individual Portfolios)
by separate agreement with the Investment Advisor.
Investments in the Pools and Individual Portfolios are made only in investments in which Public
Agencies generally are permitted by California statute. The CAMP may reject any investment and
may limit the size of a Participant's account. The Pool seeks to maintain, but does not guarantee, a
constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool
accounts at any time by check or wire transfers. Requests for wire transfers must be made by
9:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool's
underlying portfolio.
4. RESTRICTED ASSETS:
Restricted assets were provided by, and are to be used for the following as of June 30, 2008 and
2007:
Source Use 2008 2007
Bond proceeds Construction of assets in
Improvement District No. 1 $ 4,128,550 $ 4,380,803
Bond proceeds Construction of assets in
Improvement District No. 2 9,439,735 9,326,500
Custodial receipts Custodial costs 796,827 -
Water sales Debt service 830,278 -
Taxes, assessments Construction of capital
and interest assets expansion 32,151,901 9,821,483
$ 447.291 23.528.786
See independent auditors' report.
„
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
5. CAPITAL ASSETS:
Changes in capital assets for the year ended June 30, 2008 is as follows:
Balance
Balance
Julv 1, 2007
Additions
Deletions June 30. 2008
Capital assets, not being depreciated:
Land, mineral and water rights
$ 347,490
$ -
$ - $
347,490
Construction in progress
18,689,164
21,4311.64
1( 0,437,109)
29.685,219
Total capital assets, not
being depreciated
19,036,654
21.433.164
(10,437.109)
30,032,709
Capital assets, being depreciated:
Source of supply
5,775,674
-
-
5,775,674
Pumping plant
11,039,201
-
(365,089)
10,674,112
Water treatment plant
1594,232
-
(37,619)
2,556,613
Transmission and distribution plant
125,336,627
4,560,702
(1,582,565)
128,314,764
General plant
8,076,971
9,705.775
(501.709)
17,281,037
Total capital assets,
being depreciated
151822,705
14,266,477
(2.486,982)
164,602,200
Less accumulated depreciation for:
Source of supply
(1,088,039)
(144,358)
-
(1,232,397)
Pumping plant
(2,960,100)
(362,257)
365,089
(2,957,268)
Water treatment plant
(500,236)
(117,450)
37,619
(580,067)
Transmission and distribution plant
(32,076,917)
(2,513,983)
1,578,659
(33,012,241)
General plant
(3.846,771)
(434,678)
501,709
(3.779,740)
Total accumulated depreciation
(40,472,063)
(3,572,726)
2,483,076
(41,561,713)
Total capital assets,
being depreciated, net
112,350,642
10.693.751
(3.906)
123,040,487
Total capital assets, net
$...-_:1.1,3&74
3_1?4.41
$x_19,441 0,1_x)$
_S33Q7~1.96
See independent auditors' report.
-34-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
5. CAPITAL ASSETS (CONTINUED):
Changes in capital assets for the year ended June 30, 2007 is as follows:
Capital assets, not being depreciated:
Land, mineral and water rights $
Construction in progress
Total capital assets, not
being depreciated
Balance Balance
Julv 1. 2006 :'Additions Deletions June 30. 2007
347,490 S - S - $ 347,490
8.332.697 10.511.754 (155.287) 18.689,164
8.680.187 10.511.754 _ (155.287) 19.036.654
Capital assets, being depreciated:
Source of supply
Pumping plant
Water treatment plant
Transmission and distribution plant
General plant
Total capital assets,
being depreciated
Less accumulated depreciation for:
Source of supply
Pumping plant
Water treatment plant
Transmission and distribution plant
General plant
Total accumulated depreciation
"Total capital assets,
being depreciated, net
5,775,674 -
- 5,775,674
11,039,201
- 11,039,201
2,594,232 -
- 2,594,232
117,662,209 7,699,820
(25,402) 125,336,627
7,967,938 142.540
(33,507) 8.076,971
145,039.254 7,842,360
(943,680) (144,359)
(2,597,325) (362,775)
(382,787) (117,449)
(29,687,921) (2,397,052)
(3.456.045) (424.233)
(37.067.758) (3.445.868)
(58.909) 152.822.705
(1,088,039)
(2,960,100)
- (500,236)
8,056 (32,076,917)
33.507 (3.846.771)
41.563 (40.472.063)
107,971,496 4,396.492
(17346) 112.350.642
Total capital assets, net $116,6-5-L.x&3 $14.908.246 $ 1723633.) $ _17~1..ZVI-29.6
Depreciation expense for the depreciable capital assets was $3,572,726 and $3,445,868 in 2008
and 2007, respectively.
The District has been involved in various construction projects throughout the year. The balance of'
construction in progress at June 30, 2008 and 2007 are $29,685,219 and $18,689,164, respectively.
See independent auditors' report.
-35-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30. 2008
6. COMPENSATED ABSENCES:
Compensated absences comprise unpaid vacation leave, sick leave and compensating time off
which is accrued as earned. The District's liability for compensated absences is determined
annually.
The following is a summary of changes to compensated absences balances at June 30, 2008:
Balance Balance Due Within
Julv 1. 2007 Earned Taken June 30. 2008 One Year
_ _ 3723441 $_:35:5.939) 4..x,979 $ 461979
445,477
The following is a summary of changes to compensated absences balances at June 30, 2007:
Balance Balance Due Within
Julv 1. 2006 Earned Taken June 30. 2007 One Year
$ _ 43 092 $ ?W45 ~21I,y60) 445x477 445,4:..7.7
7. LONG-TERM LIABILITIES:
Changes in long-term liabilities for the year ended June 30, 2008 were as follows:
2003 Revenue Certificates
of Participation
2008 Revenue Certificates
of Participation
Subtotal
Add (Less):
Discount
Premium
Total
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
$ 10,070,000 $ - $ (210,000) $ 9,860,000 $ 215,000
- 34.995,000 - 34.995.000 355.000
10,070,000 34,995,000 (210,000) 44,855,000 57Q,QQQ
(142,148) -
792.602
~,9z7.,If5.' $---3787-6Q2
2003 Revenue Certificates of Participation:
5,433 (1361715)
(8.807) 783.795
In August 2003, the District issued $10,645,000 2003 Revenue Certificates of Participation for the
purpose of financing the Highland Reservoir Renovation and Richfield-Phase 3 Renovation
Project. The Certificates bear interest ranging from 2% to 5%, payable semiannually on April 1
and October 1, commencing April 1, 2004. The Tenn Certificates of $2,295,000 are due on
October 1, 2028 and the Term Certificates of $2,930,000 are due on October 1, 2033.
See independent auditors' report.
-36-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
7. LONG-TERM LIABILITIES (CONTINUED):
2003 Revenue Certificates of Participation (Continued):
The annual debt service requirements for the 2003 Revenue Certificates of Participation
outstanding at June 30, 2008 are as follows:
Year Endine
Principal
Interest
Total
2009
$ 215,000
$ 459,306
$ 674,306
2010
220,000
453,074
673,074
2011
225,000
445,726
670,726
2012
235,000
437,382
672,382
2013
245,000
428,076
673,076
2014 - 2018
1,380,000
1,975,905
3,355,905
2019 - 2023
1,720,000
1,623,541
3,343,541
2024 - 2028
2,185,000
1,142,625
3,327,625
2029 - 2033
2,790,000
523,750
3,313,750
2034 - 2038
645.000
16.125
661,125
Subtotal
9,860,000
7,505,510
17,365,510
Less: Discount
(136,715)
-
(136,715)
Total
_ 9.723.285
$ 7.505.510
$_._1 7.228,795
2008 Revenue Certificates of Participation:
In February 2008, the District issued $34,995,000 2008 Revenue Certificates of Participation for
the purpose of financing the 2008 Capital Improvement Projects. The Certificates bear interest
ranging from 4% to 5%, payable semiannually on April 1 and October 1, commencing
October 1, 2008. The Term Certificates of $10,885,000 are due on October 1, 2038.
See independent auditors' report.
-37-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
7. LONG-TERM LIABILITIES (CONTINUED):
2008 Revenue Certificates of Participation (Continued):
The annual debt service requirements for the 2008 Revenue Certificates of Participation
outstanding at June 30, 2008 are as follows:
Year Endinu
Principal
Interest
Total
2009
$ 355,000
$ 1,698,528
$ 2,053,528
2010
605,000
1,528,196
2,133,196
2011
630,000
1,503,496
2,133,496
2012
655,000
1,477,796
2,132,796
2013
680,000
1,451,096
2,131,096
2014 - 2018
3,825,000
6,816,980
10,641,980
2019 - 2023
4,660,000
5,971,080
10,631,080
2024 - 2028
5,680,000
4,921,406
10,601,406
2029 -2033
7,020,000
3,537,875
10,557,875
2034 -2038
8,845,000
1,658,875
10,503,875
2039
2,040,000
51,000
2,091.000
Subtotal
34,995,000
30,616,328
65,611,328
Add: Premium
781795
-
783,795
Total
$ 35,778 795
_S 30,616.328
$ 66.395.123
8. NET INVESTMENT IN CAPITAL ASSETS:
The balance of net investment in capital assets consisted of the following as of June 30, 2008 and
2007:
Capital assets, net
Certificates of participation - current
Certificates of participation - long-term
Unspent proceeds
2008 2007
$ 153,073,196 $ 131,387,296
(570,000) (210,000)
(44,932,080) (9,717,852)
32,106,547 9,535,333
Net investment in capital assets
S 139.677.663 $ 130.994.777
See independent auditors' report.
-38-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
9. DEFINED BENEFIT PENSION PLAN:
a. Plan Description:
The District contributes to the California Employees Retirement System (Ca1PERS), an agent
multiple-employer public employee defined benefit pension plan. CalPERS provides retirement
and disability benefits, annual cost-of-living adjustments, and death benefits to plan members
and beneficiaries. CalPERS acts as a common investment and administrative agent for
participating public entities within the State of California. Benefit provisions and all other
requirements are established by State statute and District ordinance. Copies of Ca1PERS'
annual financial report may be obtained from their Executive Office located at, 400 P Street,
Sacramento, CA 95814.
b. Funding Policy:
The contribution rate for plan members in the CalPERS 2.0% at 55 Risk Pool Retirement Plan
is 7% of their annual covered salary. The District makes these contributions required of
District employees on their behalf and f'or their account. Also, the District is required to
contribute the actuarially determined remaining amounts necessary to fund the benefits for its
members. The required employer contribution rates for fiscal year 2008, 2007 and 2006 were
9.471%, 7.930% and 6.883%, respectively. The contribution requirements of the plan members
are established by State statute, and the employer contribution rate is established and may be
amended by CalPERS. For fiscal years 2008, 2007 and 2006 the District's annual contribution
was $763,653, $613,905 and $514,003, respectively, for Ca1PERS and was equal to the
District's required and actual contributions for each year.
10. POST EMPLOYMENT BENEFITS:
In addition to a pension plan, substantially all the District's employees may become eligible for
certain health care benefits for those retired employees that attained the age of 50 years and their
dependants and have served the District on a full-time basis for five years. These benefits are
provided through an insurance company whose premiums are based on benefits paid.
The District finances the plans on a pay-as-you-go basis. In 2008 and 2007, the District paid
$103,482 and $81,778, respectively, in post-employment health care benefits, net of retiree
contributions, and had thirteen eligible retired employees in 2008 and twelve eligible retired
employees in 2007.
11. RISK MANAGEMENT:
The District is exposed to various risks of loss related to torts, theft of, damage to and destruction
of assets, errors and omissions, injuries to employees and natural disasters. In an effort to manage
its risk exposure, the District is a member of the Association of California Water Agencies Joint
Powers Insurance Authority (the Authority).
See independent auditors' report.
-39-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
11. RISK MANAGEMENT (CONTINUED):
The Authority is a risk-pooling self-insurance authority, created under provisions of California
Government Code Sections 6500 et. seq. The purpose of the Authority is to arrange and administer
programs of insurance for the pooling of self-insured losses and to purchase excess insurance
coverage.
At June 30, 2008, as a member of the Authority, the District participated in the insurance programs
as follows:
• General and auto liability, public officials and employee's error and omissions: Total risk
financing self-insurance limits of $1,000,000, combined single limit at $1,000,000 per
occurrence. The District purchased additional excess coverage layers: $49 million for
general, auto and public officials liability, which increases the limits on the insurance
coverage noted above.
• Employee dishonesty coverage up to $100,000 per loss includes public employee
dishonesty, forgery or alteration and theft, disappearance and destruction coverages, subject
to a $1,000 deductible per occurrence.
• Property loss is paid at the replacement cost for property on file, if replaced within two
years after the loss, otherwise paid on an actual cash value basis. ACWA JPIA is
self-insured for the first $50,000, and then purchased excess coverage up to $ 100 million,
subject to a $1,000 deductible, except for a $500 deductible on vehicles.
• Boiler and machinery coverage for the replacement cost up to $100 million per occurrence,
subject to various deductibles depending on the type of equipment.
• Public officials personal liability up to $100,000 each occurrence, with an annual aggregate
of $100,000 per each elected/appointed official to which this coverage applies, subject to
the terms, with a deductible of $1,000 per claim.
• Workers' compensation insurance up to California statutory limits for all work related
injuries/illnesses covered by California law.
Settled claims have not exceed any of the coverage amounts in any of the last three fiscal years and
there were no reductions in the District's insurance coverage during the years ended 2008, 2007
and 2006. Liabilities are recorded when it is probable that a loss has been incurred and the amount
of the loss can be reasonably estimated net of the respective insurance coverage. Liabilities include
an amount for claims that have been incurred but not reported (IBNR). There were no IBNR clams
payable as of June 30, 2008, 2007 and 2006.
See independent auditors' report.
-40-
YORBA LINDA WATER DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
12. COMMITMENTS AND CONTINGENCIES:
Construction Contracts:
The District has a variety of agreements with private parties relating to the installation,
improvement or modification of water facilities and distribution systems within its service area.
The financing of such construction contracts is being provided primarily from the District's
replacement reserves and advances for construction. The District has committed to approximately
$12,356,642 of open construction contracts as of June 30, 2008.
Construction contracts include:
Total
Construction
Balance
Approved
Costs
to
Proiect Name
Contract
to Date
Comnlete
Design of Hidden Hills Reservoir (2MG)
$ 322,769
$ 316.314
$ 6,455
Oil well abandonment at Highland Reservoir Site
179,065
79,302
99,763
Inspection and oversight of oil well abandonment at
Highland Reservoir Site
94,509
69,755
24,754
CM for Highland Reservoir Replacement (6MG)
605,856
47,667
558,189
Geotechnical support services for Highland Reservoir
Replacement
86,200
1,145
85,055
Environmental support services for Highland Reservoir
Replacement
22,251
1,602
20.649
Construction of Highland Reservoir Replacement (6MG)
9,049,346
329,058
8,720,288
Construction of 18-inch and 36-inch Transmission
Pipelines
1.011,222
807,735
203,487
CM for 18-inch and 36-inch Bastanchury Transmission
Pipelines
142,780
138,175
4,605
Design, CM and Inspection of Lakeview Avenue Res.
2,278,114
2.018,992
259,122
CM and inspection of Lakeview Avenue Res.
199,350
21.238
178,112
Lakeview 8 million gallon Reservoir Project
10.642.388
8,691,780
1,950,608
GIS data conversion contract
183.576
74,066
109,510
GIS parcel database 5-year purchase agreement
42,118
16,847
25.271
Zone reconfiguration project
113.676
2.902
110.774
$ 24,973,22Q
$,1'}61f~f57$
1?Z156 6.4.2
Litigation:
In the ordinary course of operations, the District is subject to claims and litigation from outside
parties. After consultation with legal counsel, the District believes the ultimate outcome of such
matters, if any, will not materially affect its financial condition.
See independent auditors' report.
-41-
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-42-
SUPPLEMENTAL INFORMATION
-43-
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE NET ASSETS
June 30, 2008
ASSETS
Water
Sewer
CURRENT ASSETS:
UNRESTRICTED ASSETS:
Cash and investments
$ (545,955)
$ 1,304,038
Cash and investments - annexation
9,630,056
-
Accrued interest receivable
20,784
863
Accounts receivable - water and sewer services, net
4,377,196
266,198
Accounts receivable - property taxes
25,360
1,488
Construction advances and deposits
80,124
563,690
Inventory
397,985
-
Prepaid expenses and other deposits
175,804
-
TOTAL UNRESTRICTED ASSETS
14,161,354
2,136,277
RESTRICTED ASSETS:
Cash and investments with fiscal agent
33,733,651
-
Accrued interest receivable
45,354
TOTAL RESTRICTED ASSETS
33,779.005
-
TOTAL CURRENT ASSETS
47,940,359
2,136,277
NONCURRENT ASSETS:
CAPITAL ASSETS:
Capital assets, not being depreciated
27,208,199
1,103,793
Capital assets, being depreciated
102,579,146
26,933,258
Less accumulated deprecation
(25,432,331)
(6,663,721)
TOTAL CAPITAL ASSETS, NET
104,355,014
21,373,330
OTHER ASSETS:
Deferred charges, net
845,507
-
TOTAL NONCURRENT ASSETS
105,200,521
21,373,330
TOTAL ASSETS
153,140,880
23,509,607
See independent auditors' report.
-44-
Improvement Improvement
District No. 1 District No. 2
5,257 3,425
5,257 3,425
4,128,550 9,439,736
4,128.550 9,439,736
4,133,807 9,443,161
734,370
986,347
17,536.390
17,553,406
(4,637.357)
(4,828,304)
13,633,403
13,711,449
13.633.403 13,711,449
17,767,210 23,154,610
Totals
758,083
9,630,056
30,329
4,643,394
26,848
643,814
397,985
175.804
16,306,313
47,301,937
45,354
47,347,291
63,653,604
30,032,709
164,602,200
(41,561,713)
153,073,196
845,507
153,918,703
217.572,307
-45-
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF NET ASSETS
(CONTINUED)
June 30, 2008
LIABILITIES
CURRENT LIABILITIES:
PAYABLE FROM UNRESTRICTED CURRENT ASSETS:
Accounts payable and accrued expenses
Accrued salaries and wages
Accrued compensated absences
Customer and other deposits
Deferred credits
TOTAL. PAYABLE FROM UNRESTRICTED CURRENT ASSETS
PAYABLE FROM RESTRICTED ASSETS:
Construction bonding deposits
Accrued interest payable
Prepaid connection fees
Certificates of Participation - current portion
TOTAL PAYABLE FROM RESTRICTED ASSETS
TOTAL CURRENT LIABILITIES
LONG-TERM LIABILITIES (LESS CURRENT PORTION):
Deferred revenue
Certificates of Participation
TOTAL LONG-TERM LIABILITIES (LESS CURRENT PORTION)
TOTAL LIABILITIES
NET ASSETS:
Invested in capital assets, net of related debt
Restricted
Unrestricted
TOTAL NET ASSETS
See independent auditors' report.
Water Sewer
$ 5,875,858 S 28,129
76,413 7,038
461,979 -
70,814 335,726
707,914 -
7.192,978 370,893
86.979 43,175
579,722 -
7.319
570,000 -
1,244,020 43,175
8,436,998 414,068
14.485.161 -
44,932,080 -
59,417,241 -
67,854,239 414,068
90,959,481 21,373,330
955,263 -
(6,628,103) 1,722,209
$ 85,286,641 $ 23,095,539
-46-
Improvement Improvement
District No. 1 District No. 2 Totals
$ 1,231 $ 5,905,218
204 83,655
- 461,979
406.540
707,914
1,435 7,565,306
- 130,154
- 579.722
- 7,319
- 570,000
1,287.195
1,435 8,852.501
14,485,161
44,932,080
- 59,417,241
1,435 68.269.742
13,633,403 13,711,449 139,677,663
4,128,550 9,439,736 14,523,549
5,257 1,990 (4,898,647)
$ 17,767,210 $ 23,153,175 $ 149.302,565
-47-
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
For the year ended June 30, 2008
Water
Sewer
OPERATING REVENUES:
Metered water sales
$ 18,227.040
$ -
Sewer maintenance charges
-
1.247,907
Construction water sales
292,)17
-
Irrigation sales
78,340
-
Customer service fees
160,225
-
Rents and royalties
49,605
-
Outside of District water sales
32,518
-
Unmetered water sales
9,816
-
Other charges and services
144,461
25,884
TOTAL OPERATING REVENUES
18,994,122
1,273,791
OPERATING EXPENSES:
Variable water cost
10,516,507
-
Personnel services
5,168,852
582,532
Supplies and services
4,010,377
351,135
TOTAL OPERATING EXPENSES
19,695,736
933,667
TOTAL OPERATING INCOME (LOSS) BEFORE DEPRECIATION
(701,614)
340,124
DEPECIATION
3,060.496
512.230
OPERATING LOSS
(3,762,110)
(172,106)
NONOPERATING REVENUES (EXPENSES):
Property taxes - debt service
-
Property taxes - operations
1,257,943
-
Interest and investment earnings
1,028,575
14,566
Other nonoperating revenues
224.408
29,628
Water sales restrcted for debt service
830.278
-
Interest expense
(824,387)
-
Other expense
(123,934)
(446)
TOTAL NONOPERATING REVENUES (EXPENSES)
2,392,883
43,748
NET INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
(1,369,227)
(128,358)
CAPITAL CONTRIBUTIONS
3.940,721
1,505,793
CHANGES IN NET ASSETS
2,571,494
1,377,435
NET ASSETS - BEGINNING OF YEAR
82,715,147
21.718,104
NET ASSETS - END OF YEAR
$ 85,286,641
$ 23,095,539
See independent auditors' report.
-49-
Improvement Improvement
District No. 1 District No. 2 Totals
$ - $ - $ 18,227,040
- 1,247,907
292,117
78,340
160,225
49,605
32,518
9,816
170,345
20,267,913
751
4,962
130.344
334,708
11,065
5,328
(6,123)
(3.101)
136.037
341,897
136,037
341,897
(875,201)
(471,262)
(739,164)
(129,365)
18.506.374
23,282.540
17,767,210
$ 23,153,175
10,516,507
5,751,384
4.361,512
20.629,403
(361,490)
3,572.726
(3.934,216)
5,713
1,257,943
1,508,193
270,429
830,278
(824,387)
(133,604)
2,914,565
(1,019.651)
4,100.051
3,080.400
146,222,165
$ 149,302,565
-49-
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-50-
YORBA LINDA WATER DISTRICT
SCHEDULE OF OPERATING EXPENSES BY COST CENTER
AND NATURE OF EXPENSES FOR WATER AND SEWER
For the year ended June 30, 2008
Water
Sewer
Totals
OPERATING EXPENSES:
Variable Water Costs:
Imported water
$ 5,550,971
$
$ 5,550,971
OCWD replenishment assessment
3.228,652
3.228,652
Fuel and power/pumping
1,359,316
1,359,316
MWD connection charge
377,568
377,568
Total Variable Water Costs
10,516,507
10,516.507
Personnel Services:
Unit salaries
2,405,895
279,642
2,685,537
Management, supervisor and confidential salaries
1,226,177
138,713
1,364,890
Fringe benefits
1,475,935
160,317
1,636,252
Director's fees
41,277
3,860
45,137
Salaries - other
19,568
-
19,568
Total Personnel Services
5,168,852
582,532
51751,384
Supplies and Services:
Maintenance
1,012,217
42,435
1,054,652
Contractual services
1,321,654
146,030
1,467,684
Insurance
202,495
20,027
222,522
Data processing
122,966
5,421
128,387
Communications
185,440
13,933
199,373
Vehicle expense
338,473
42,791
381,264
Professional services
491,550
47,545
539,095
Utilities
32,390
1,268
33,658
Office expense
33,979
3,357
37,336
Training
40.395
2,194
42,589
Dues and memberships
25,385
2,402
27,787
Travel and conferences
58,511
5,258
63,769
Noncapital equipment
82,262
9,276
91,538
Bad debt expense
12,429
1,002
13,431
Recreation committee
11,571
1,144
12.715
Other
38,660
7,052
45,712
Total Supplies and Services
4.010,377
351,135
4,361,512
TOTAL OPERATING EXPENSES
$ 19,695,736
$ 933,667
$ 20,629,403
See independent auditors' report.
- 51 -
YORBA LINDA WATER DISTRICT
SCHEDULE OF CAPITAL ASSETS
For the year ended June 30, 2008
Land, Mineral and Water Rights:
Land
Water rights
Mineral rights
Land rights and easements
Total Land, Mineral and Water Rights
Source of Supply:
Wells
MWD connection
Total Source of Supply
Pumping Plant:
Structures and improvements
Equipment
Total Pumping Plant
Water Treatment Plant:
Strictures and improvements
Equipment
Total Water Treatment Plant
Transmission and Distribution Plant:
Mains
Reservoirs and tanks
Service and meter installation
Fire hydrants
Meters
Fire mains
Structure and improvements
Total Transmission and Distribution Plant
General Plant:
Structures and improvements
Transportation equipment
Power operated equipment
Communication equipment
Computer equipment
Office furniture
Tools, shops and garage equipment
Other
Store equipment
Total General Plant
Construction in Progress
Total Capital Assets
See independent auditors' report.
$
Water
138,629 $
86,3300
63,650
385
288,964
3,868.91 1
373,938
4.242.849
3,830,690
2,972,272
6,802,962
932,474
804,633
1,737,107
41,329,143
16,129,101
4.633,807
5.575.344
5,117,424
714.886
1,288.070
74,787.775
11,245,398
1,407,416
138,527
565,557
372.212
1.199,069
50,675
4.650
24.949
15,008,453
26.919.235
$ 129,787.345
Sewer
58,526
58,526
29,240
29,240
24,166,507
1,759,128
25.925.635
978.383
978.383
1,045,267
$ 28,037,051
-52-
Improvement Improvement
District No. 1 District No. 2 Totals
$ - $ $ 138,629
86,300
63,650
58,911
347,490
753,617
588,778
5,211,306
123.514
66,916
564,368
877,131
655,694
5,775,674
781,868
2,161,000
6,773,558
733.694
165.348
3,900,554
1,515,562
2,326,348
10,674,112
370,338
170,814
1,473,626
278,354
-
1,082,987
648,692
170,814
2,556,613
7,614,845
5,531,549
78,642,044
5,822,555
8,400,449
30,352,105
-
-
6.392,935
-
-
5,575,344
-
-
5,117,424
-
-
714,886
231,956
-
1,520,026
13,669.356
13,931.998
128,314,764
825,649 468,552 12,539.599
- - 2.385.799
138.527
565,557
372,212
_ - 1,199.069
- 50,675
- 4,650
- - 24,949
825.649 468.552 17,281,037
734,370 986,347 29,685,219
$ 18,270,760 $ 18,539,753 $ 194,634,909
-53-
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-54-
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERSHIP INCLl1DINO ACCOUN'IANCY' CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606-5165
(949) 39941600 • FAX 1949) 399-0610
W W W.C11ehlevallti. cOm
MICHAEL R 1.1 DIN. CPA
CRAIG W. SPRAKER. CPA
NI I IN P. PA I EL. CPA
ROBE117I. CALLANAN. CPA
`PHILIP H. 11011 KAMP, CPA
'THOMAS M PERLOW'SKI. CPA
`HARVE)' 1. SCHROEDE.R. CPA
KENNETH It AMLS. CPA
•PI[ LIAM C. PENT7. CPA
September 20, 2008 •A PROFESSIONAL CORPORA BON
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Board of Directors
Yorba Linda Water District
Yorba Linda, California
We have audited the basic financial statements of the Yorba Linda Water District (the District) as of
and for the year ended June 30, 2008, and have issued our report thereon dated September 20, 2008.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Renortin>r
In planning and performing our audit, we considered the District's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
District's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the District's internal control over financial reporting.
Our consideration of the internal control over financial reporting was for the limited purpose described
in the preceding paragraph and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies over material weaknesses. However, as discussed below, we
identified a deficiency in internal control over financial reporting that we consider to significant
deficiency.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the District's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that
there is more than a remote likelihood that a misstatement of the District's financial statements that is
more than inconsequential will not be prevented or detected by the District's internal control. We
consider the deficiency described below to be significant deficiency in internal control over financial
reporting.
-55-
OTHER OFFICES AT: 2965 ROOSEVF.L'I' STREET 613 W VALLEY PARKWAY. SUITE 330
CARL.SBAD, CALIFORNIA 92008-2389 ESCONDIDO. CALWORNIA 92025-2598
(760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890
Internal Control Over Financial Renorting (Continued)
Canital Assets Svstem
A comprehensive capital asset accountability system could provide the District valuable benefits such
as asset procurement, construction and utilization management, loss control and theft prevention, and
responsible asset stewardship. Currently, the District manages its capital asset construction-in-process
projects in various spreadsheets and a manual ledger system and not in a comprehensive capital asset
accountability system
We recommend that the District acquire a comprehensive capital asset accountability system so that
capital asset construction-in-process additions and deletions can be entered into the system on an
ongoing basis as soon as they occur and not in a manual ledger system. This will allow the District to
maintain updated and accurate general ledger balances of capital assets, will automate the depreciation
expense calculations and will provide management with other useful capital asset information
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the District's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described
in the preceding paragraph and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies and, accordingly, would not disclose all significant deficiencies that
are also considered to be material weaknesses. However, we believe that the significant deficiency
described above is not a material weakness.
Comnliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free of
material misstatements, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that
are required to be reported under Government Auditine Standards.
Comnliance with Investment Poliev
On October 27, 2005, the District adopted resolution 05-11 setting forth the public funds investment
policy for the District. The resolution details the types of investments that the District is permitted to
invest in. At June 30, 2008 and throughout the fiscal year, the District had investments in mutual funds.
Government Code Section 53601 allows local agencies to invest in mutual funds. However, the
District's investment policy does not specifically list mutual funds as a permitted investment.
This report is intended solely for the information and use of the Yorba Linda Water District Directors
and management of the Yorba Linda Water District and is not intended to be and should not be used by
anyone other than these specific parties.
-56-
ITEM NO.
95-
AGENDA REPORT
Board Meeting Date: October 23, 2008
APPROVED BY THE BOARD OF DIRECTORS
To: Board of Directors OF THE YORBA LINDA WATER DISTRICT
From: Michael A. Payne, General Manager OCT 2 3 2008
Staff Contact: Pat Grady, IT Director oy-4~j
Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 93,000
Funding Source: All Water Funds
CEQA Account No: 101-2120 Job No:
Compliance: N/A Estimated Costs: $ 70,000 Dept: Info Tech
Subject: Electronic Imaging and Agenda Automation System
SUMMARY:
The electronic imaging and agenda automation system will modernize the manner District
documents are stored, retrieved and made available to the public in addition to automate the
development and workflow process for both Board and committee agendas.
DISCUSSION:
Staff has selected and is recommending an electronic imaging and agenda automation system
that will enhance internal records storage and management, as well as automate the agenda
process from beginning to end. The recommended imaging software is the Laserfiche system
which is widely used by other public agencies. The Laserfiche software will be utilized by all
departments to convert existing and future documents to an electronic format for ease of
storage and retrieval. These documents could then be accessible by all District employees, with
proper security privileges. Additionally, the public could have access to Board documents such
as resolutions, minutes, ordinances, etc, through the District's web site. While some items are
currently available through the existing web site, access to these documents would be further
automated with the Laserfiche system by eliminating the need to manually place those
documents on the web, thus reducing Staff effort and time.
The recommended agenda automation system is NovusAgenda, which will manage the
workflow and publishing process for creating and distributing Board and Committee agendas.
The software would be customized with the look and feel of the District's current agenda and
interact directly with the District's web site for publishing the agenda and its contents for public
access. Currently, the District's Board and Committee agendas, along with support materials,
are processed in a manner that requires time and resources which can be better improved and
streamlined with an automated system.
Staff solicited three quotations for both the Laserfiche electronic imaging system and the
agenda automation system. For both products, Datanet Solutions was the low bidder and Staff
therefore recommends they be selected to provide the District with both products at a total cost
of $69,192. The quotations received were the following:
l Vendor
Datanet Solutions
ECS Imaging, Inc,
VPCI
Novusolution
Laserfiche Software
$ 30,079
$ 30,304
$ 54,350
NovusAgenda Software
$ 39,113
$ 40,406
$ 40,406
For fiscal years 2007/08 and 2008/09, a total of $93,000 was budgeted in combination for
Electronic Imaging ($80,000) and Data Processing ($13,000) within the Administration
Department. Upon installation and implementation of both systems, Staff is recommending the
remaining budgeted funds be utilized for temporary labor to begin scanning existing files into the
electronic imaging system database.
The total cost for both Laserfiche and NovusAgenda include the annual maintenance for the first
year. Subsequently, the recurring annual maintenance cost for Laserfiche is $4,780 while
NovusAgenda will be $3,800 per year. Additionally, supplemental hardware and Microsoft
software items will be required for program implementation, on a one time basis. The following
items would be acquired with IT Department budgeted funds:
• Server hardware $ 5,000
• Microsoft SQL Server $ 4,000
• (5) scanners @ $1,000/ea $ 5,000
The District currently stores and archives all files manually. At this point in time, it is difficult to
determine the number of files that will ultimately require scanning and storage into the
Laserfiche system. Staff's recommendation is a phased approach by initially begin scanning
those files that will be retained indefinitely, i.e. legal documents. It would be Staff's intent to
revise and update the District's Records Retention Policy during the first quarter of 2009, or
sooner. Upon completion, Staff can better finalize which documents would be subject to
temporary storage, permanent archive, or destruction.
Should the Board approve the electronic imaging and agenda automation system, installation
and implementation could be completed by December/2008.
Attached for the Board's review are summaries of the various quotes received from all four
vendors for both the Laserfiche and NovusAgenda svstems.
PRIOR RELEVANT BOARD ACTION(S):
The Board has preliminarily approved the electronic imaging system by previously adopting the
FY 2007/08 and 2008/09 capital budget which included this item.
STAFF RECOMMENDATION:
That the Board of Directors authorize the General Manager to execute a Professional Services
Agreement with Datanet Solutions at a cost of $69,192 for the Laserfiche electronic imaging
system and the NovusAgenda automation system.
datanet
solutions
4071 E. La Palma Avenue. Suite B
Anaheim, CA 92807
Quote for
Yorba Linda Water District
Attn: Pat Grade
4622 Plumosa Dr.
Yorba Linda. CA 92886
Item
I Description
S( )FTWWR[.:
S30
Laserliche United Server MS SQL
FX
Laserliche Full i Jser I Jnited
RX
Laserliche Retrieval I Jser United
97830
Laserliche Weblink
SOFTWARE Si JPP(:)RT:
S313
Laserliche Sollware Assurance Plan (LSAP) Support for United Server MS SQL
FXB
Laserfiche Sollware Assurance Plan (LSAP) Support for Full User United
RXB
Laserliche Solt\\are Assurance Plan (LSAP) Support for Retrieval User United
978301JB
Laserliche Software Assurance Plan (LSAP) for WebLiiilc
PR(FESSIONAL SERVICES:
PSG-PRMG...
Project Management
- Site Analysis.
- hnplementation Consulting,
- Installation/Configuration.
- System Design,
- End User Training.
- Systems Administrator Training
Discount - Sa...
Special Consideration Discount
Fed Tax ID No. 03-0388067
Quote Valid for 30 da}s
Standard Shipping Rates Appl}.
Fed Tax ID No. 03-0388067
Accounts Payable:
Datanet Solutions. Inc.
4071 E. La Palma Avenue. Suite B
Anaheim. CA 92807
Phone # 714-630-0337 Fax # 714-630-0338
Quote
Date I Quote
10/3/2008 202035
Project
Quantity Unit Price Total
1
7.250.00
7.250.OOT
6
750M
4.500.OOT
14
300.00
4,200.OOT
1
7,995.00
7.995.OOT
1
1.450.00
1.450 OOT
6
150.00
900 OOT
14
60.00
840 00T
1,590.00
1.590 OOT
1
2.500.00
2,500.00
1 -3,130.01 -3.130 OOT
Subtotal
Sales Tax (7.75%)
Total
Signature of Approval
_lly signature con' firms approval of order for all items listed. I
agree to all the terms and comh1ious listed above, f n- this order.
Page 1
E-mail mchune'fi,datanct-solutions.com Web Site ~~~~~y.datanet-solutiunsa~m
t datanet
%'%V solutions
4071 E. La Palma Avenue, Suite B
Anaheim, CA 92807
Quote for
Yorba Linda Water District
Attn: Pat Grade
4622 Phunosa Dr.
Yorba Linda. CA 92886
Quote
Date Quote
10/3/2008 202035
Project
Item
Description
Quantity Unit Price Total
Terms:
50% due at the time of order
Remaining balance due upon delivery
Fed Tax 11.) No. 03-0388067
Quote Valid for 30 days
Standard Shipping Rates Apply.
Fed Tax ID No. 03-0388067
Accounts Pay able:
Datanet Solutions. Inc.
4071 E. La Palma Avenue, Suite B
Anaheim. CA 92807
Subtotal $28095,00
Sales Tax (7.75°/x) $1 M3.62
Total $30,078.62
Signature of Approval
.11y sigrnatnere confirms approval of order for all iterrns listed. 1
agree to all the terms and conditions listed above fur this order.
Page 2
Phone # 714-630-0337 Fax # 714-630-0338 E-mail mchung'(t~datanet-solutions.com Web Site s~iti-Nr.datanet-solutions.com
3720 Sunnyside Drive, Ste. #200
Riverside, CA 92506 Prepared by:
Main Phone (877) 790-1600 Account Rep Phone:
Main Fax (951) 787-0831
Quotation For: Quote Title:
Yorba Linda Water District Quote
Pat Grady
(714) 701-3082 Date:
Valid through:
Terms:
i-nKit`I IGDCArr I ICCC.CVQTCIIA C 01.11 --Ad A
Ci.►.:e..sl
Software:
Debbi Richards
Laserfiche Quotation
61251
9/18/2008
12/31/2008
Net 20
Total i x SubTotaI
Laserfiche Base System SQL version
$
7,250.00
1 $
7,250.00
Laserfiche Full Users each (including: Email and Snapshot)
$
750.00
6 $
4,500.00
Laserfiche Retrieval Users each (including: Email)
$
300.00
- 14 $
4,200..00
Laserfiche Weblink
$
7,995.00
1 $
7,995.00
Sub-Total of software
Annual Software Maintenance & Support
Laserfiche Base System SQL version
$
1,450.00
1 $
1,450.00
Laserfiche Full Users each (including: Email & Snapshot maint.)
$
150.00
6 $
900.00
Laserfiche Retrieval Users each (including: Email)
$
60.00
14 $
840.00
Laserfiche Weblink
$
1,590.00
1 $
1,590.00
Sub-Total of 1st Year Annuals
ECS educational trainina on-site $ 1,250.00 1 $ 1,250.00
Materials, instructor, and follow up telephone support. For each purchased day of training: On-site for scan
operators, retrieval persons & system administrator. Train the Trainer Approach
Intearation Services: $ 1,250.00 1 $ 1,250.00
Installation of Hardware and Software above, Integration, Testing, Troubleshooting, Emergency Support,
Consulting, and Project Management.
Sub-Total of Services
Sub-Total $ 31,225.00
New Customer Discount $ (3,100.00)
Total After Discount $ 28,125.00
Sales Tax @ 7.75% $ 2,179.69
ECS Turn-kev Solution Total $ 30.304.69
$ 23.945.00
$ 4,780.00
$ 2.500.00
*ECS Priority Plan I
-Priority phone support upgraded from 24 hour response to 2 hour response time.
-Unlimited phone and email support.
-On-site support up to 20 hours included. On-site within next business day as needed.
-On-site time is calculated to nearest half hour and minimum onsite calculation is 2 hours. Remote support is calculated to
-Customers under this plan can purchase additional on-site time discounted at $100/hour.
-Customers not under this plan can purchase on-site hours at $150/hour 2 hour minimum and 1/2 travel time
•2 Free Admissions to Annual Customer Conference, Free Admission to Quarterly User Groups.
-Monthly E-Newsletter
-Hours of support are 7:30am - 5:30pm PST.
-This plan covers support for the Laserfiche software system including remedial training, installing updates, consulting, and
*ECS Annual Priority. Support Contract $ 2,500.00 1 $ 2,500.00
Priority on-site support up to 20 hours, Phone support as required with a 2-hour response time. 1 year
9/18/2008 1
PC,/
5 Coburg Rd., Ste. 203
Eugene, OR 97401
Bill To:
Yorba Linda Water District
1717 East Miraloma Avenue
Placentia, California 92870
Account Representativel
Ernie Glaspey
QTY.
Ship To:
Yorba Linda Water District
1717 East Miraloma Avenue
Placentia, California 92870
P.O. # I SHIP VIA SHIP DATE I
DESCRIPTION
1 Laserfiche Standard Server- The core of the Laserfiche solution
resides on a server with Microsoft Server 2003 (or later) network
operating system. SQL 2000/2005
1 Laserfiche Standard Server Annual Software Maintenance, includes
free software upgrades during the year, does not include software
installation. *NOTE, Budget item to be renewed each year on the
anniversary date of purchase.
6 Laserfiche Full Feature License -full feature licensed clients are
able to browse, search, read, print, email, scan, append pages,
re-order pages, createlremove annotations and add/remove
redactions to documents in the repository.
6 Laserfiche Full Feature License Annual Software Maintenance,
includes free software upgrades during the year, does not include
software installation. *NOTE, Budget item to be renewed each year
on the anniversary date of purchase.
14 Laserfiche Retrieval License - read-only licensed clients are able to
browse, search, read, print, and e-mail documents in the repository.
14 Laserfiche Retrieval License Annual Software Maintenance,
includes free software upgrades during the year, does not include
software installation. *NOTE, Budget item to be renewed each year
on the anniversary date of purchase.
6 Laserfiche Additional Email Licenses - Note, Email licenses are now
bundled in with the Retrieval Licenses. Without this line item, total is
14.
6 Laserfiche Email Annual Software Maintenance for the following
products includes free software upgrades during the year, does not
include software installation. To be renewed each year on
anniversary date of purchase. August 2008-2009
Thank you for the opportunity!
An interest rate of 18% will be applied to all past due balances over 30 days
Invoice Prelim
TERMS I DATE J PG.
Net 30 9/15/2008 1
PRICE DISC % Total
$9,000.00 $9,000.00
$1,650.00 $1,650.00
$750.00
$200.00
$300.00
$80.00
$85.00
$20.00
$4,500.00
$1,200.00
$4,200.00
$1,120.00
$510.00
$120.00
SALE AMT.
FREIGHT
SALES TAX
TOTAL AMT.
PAID TODAY
BALANCE DUE
PCI
5 Coburg Rd., Ste. 203
Eugene, OR 97401
Bill To:
Yorba Linda Water District
1717 East Miraloma Avenue
Placentia, California 92870
Account Representativel
Ernie Glaspey
QTY.
Ship To:
Yorba Linda Water District
1717 East Miraloma Avenue
Placentia, California 92870
P.O. # l SHIP VIA I SHIP DATE I
DESCRIPTION
1 Laserfiche Web Access - enables "Read/Write" access to the
Laserfiche repository through an Internet/Intranet connection. The
Web Access connection is through Internet Explorer and requires
Full Feature licenses.
1 Laserfiche Web Access Annual Software Maintenance, includes
free software upgrades during the year, does not include software
installation. *NOTE, Budget item to be renewed each year on the
anniversary date of purchase.
1 Laserfiche WebLink - enables "Read Only" access to the Laserfiche
repository through an Internet/Intranet connection. The WebLink
connection is through Internet Explorer, Firefox, or other web
browser software and requires Retrieval licenses.
1 Laserfiche WebLink Annual Software Maintenance, includes free
software upgrades during the year, does not include software
installation. *NOTE, Budget item to be renewed each year on the
anniversary date of purchase.
1 Laserfiche Records Management Module (non DOD certified)
1 Laserfiche Records Management Module LSAP
1 Laserfiche Software Installation on your hardware - VPCI will
facilitate and spec server hardwrae requirements with you and your
IT division. No charge for hardware needs analysis.
48 System Design, Template development to facilitate your
retrieval/searching. Folder Design, with Security Implementation
32 Laserfiche User and Admin Training
40 Laserfiche Records Management Consulting and Training
1 Project Management - Both on and off site. Limit 2 days on site
10 Per Person Per Day or Best Method - to be determined
Thank you for the opportunity!
An interest rate of 18% will be applied to all past due balances over 30 days
Invoice Prelim
TERMS
l
DATE l PG.
Net 30
9/15/2008 2
PRICE
DISC % Total
$8,000.00
$8,000.00
$1,700.00
$1,700.00
$8,000.00
$8,000.00
$1,700.00
$1,700.00
$6,000.00
$6,000.00
$1,500.00
$1,500.00
$4,000.00
$4,000.00
$225.00 $10,800.00
$225.00
$7,200.00
$160.00
$6,400.00
$2,500.00
$2,500.00
$225.00
$2,250.00
SALE AMT.
$82,350.00
FREIGHT
$0.00
SALES TAX
$0.00
TOTAL AMT.
$82,350.00
PAID TODAY
$0.00
BALANCE DUE $82,350.00
aatanet
solutions
NOVUSAGENDA MANAGEMENT SYSTEM
FOR THE
YORBA LINDA WATER DISTRICT
BY: LEONARD P. DOMINGUEZ
DATANET SOLUTIONS, INC.
LDOMINGUEZ @DATANET-SOLUTIONS.COM
Financial Considerations
The proposed Solution from Datanet is very modular and scalable and we can tailor it to fit
any budget.
We look forward to reviewing and discussing these options with you.
Datanet Solutions, Inc.
Price Quotation for
Yorba Linda Water District
September 16, 2008
NovusAgenda Management Solution
NovusAGENDA
NovusAGENDA and
$14,500
NovusBOARDVIEW
NovusBOARDVIEW
Software unlimited use
St
d
d S
i
license
an
ar
erv
ces
This screen is
One Custom Item details
customized to your
$2,100
screen
specifications and
layout requirements.
The public agenda is
One Custom Public Agenda
customized to your
$2,100
specifications including
font, style, layout and
other matters.
One Custom Minutes page set
The page set includes
$2,100
one draft and one final
minutes layout
Up to 20 custom
20 Custom Workflows
workflows can be pre-
$1,500
configured allowing
users to simply submit
items to named
workflows which are
then built for them
automatically.
NovusAGENDA also
includes a workflow
builder and editing
utility which empowers
clients to build their
own workflows after
deployment. There is no
practical limit to the
total number of
workflows.
Solution Overview Training - This is a two day $4,200
2 days session with key staff
including Board Clerk,
IT staff assigned to
support the software
and key Board Clerk
staff. The class will last
two days and involves a
complete system
overview and workflow
building session. This
class is delivered prior
to any other training so
key staff are very
familiar with the
solution and the
workflows are correct
prior to staff training.
Administrator Training - 1 day You will require at least $2,100
one or a small team of
central administrators to
oversee your
NovusAGENDA
solution. The
Administrators will be
managing user rights,
creating global groups,
overseeing workflow
structure and a number
of key centralized tasks
related to process.
Two days of onsite
Onsite Board Clerk Training - training including one $2,100
1 day includes travel day with board clerk
and staff and one day
with system admin for
workflow utility
training
Remote follow-up training Remote training for $2,100
users to ask questions
and get follow issues
resolved. This event is
delivered in two four
hour sessions totaling
9
PDF converter
Total One Time Costs for
full deplovment
NovusMEETING Software
Additional Training- cost per
day including travel.
IT staff Training to modify
Agenda/minutes layouts
Integration with Laserfiche
Document Management
Solution
one day.
Attachments and Included
agenda packets are
converted to one single
PDF file. The agenda
packet cannot exceed
300 pages with the
standard edition
converter. If your
agenda packet exceeds
300 pages on a regular
basis you will require
NovusAGENDA
Enterprise with the
advanced converter.
See optional costs
below for the advanced
PDF converter.
$32,800
Meeting management $5,000
software to record
motions votes and
discussion
Onsite training includes $2,100
travel
One day of training in $2,100
Tampa, FL covering
Template layouts and
advanced user options.
Client cover their own
travel costs.
Integration allows users
to browse into $3,500
Laserfiche to attach
files to items as well as
an export process to
auto export complete
final minute and agenda
packets to Laserfiche
for permanent storage
10
Novlus
Online Agenda Management
Pricing
Presented To: Yorba Linda Water District
Proposal Date: 9-26-2008
Valid for 90 days
Presented by
Debbi Richards, VP
3720 Sunnyside Dr. Ste. 200
Riverside, CA 92506
951-787-8768
www.ecsimaaina.com
Pricing
NovusAGENDA is offered to clients through a software purchase. This is different than some
offerings which are ASP or Software Rental Programs. ASP offerings charge recurring annual
fees for you to rent the software and the data is under the control of your vendor.
NovusAGENDA Clients own the software which means you can host it on your servers, our
servers or any other servers you choose. By owning the software
• You leave yourself options on where the software is hosted
• You control your data
• You avoid large recurring fees each year
Payment Terms - ECS ships complete software to you within 30 days of receipt of order. Full
payment for the License fee is due then.
The services will be billed in two separate invoices. The first billing event will cover the services
for customization and deployment and those services are due for payment when delivered. The
second billing event for services will occur when training has been delivered. If you choose to do
training over an extended period of time we will bill events as they occur and payment will be
due for that event.
Invoices are payable 30 days from invoice date.
NovusAGENDA NovusAGENDA and NovusBOARDVIEW
NovusBOARDVIEW Software unlimited use license
One Custom Item details This screen is customized to your
screen specifications and layout requirements
The public agenda is customized to your
One Custom Public Agenda specifications including font, style, layout and
other matters.
One Custom Minutes page The page set includes one draft and one final
set minutes layout
Up to 20 custom workflows can be pre-
20 Custom Workflows configured allowing users to simply submit
items to named workflows which are then
built for them automatically. NovusAGENDA
also includes a workflow builder and editing
$14,500
$2,500
$2,500
$2,500
$2,500
4
Solution Overview Training
- 2 days
Administrator Training - 1
day
Onsite Board Clerk Training
- I day includes travel
Remote follow-up training
PDF converter
Total One Time Costs for
full deployment
utility which empowers clients to build their
own workflows after deployment. There is no
practical limit to the total number of
workflows.
This is a two day session with key staff
including Board Clerk, IT staff assigned to
support the software and key Board Clerk
staff. The class will last two days and
involves a complete system overview and
workflow building session. This class is
delivered prior to any other training so key
staff are very familiar with the solution and
the workflows are correct prior to staff
training.
You will require at least one or a small team
of central administrators to oversee your
NovusAGENDA solution. The
Administrators will be managing user rights,
creating global groups, overseeing workflow
structure and a number of key centralized
tasks related to process.
Two days of onsite training including one day
with board clerk and staff and one day with
system admin for workflow utility training
Remote training for users to ask questions and
get follow issues resolved. This event is
delivered in two four hour sessions totaling
one day.
Attachments and agenda packets are
converted to one single PDF file. The agenda
packet cannot exceed 300 pages with the
standard edition converter. If your agenda
packet exceeds 300 pages on a regular basis
you will require NovusAGENDA Enterprise
with the advanced converter. See optional
costs below for the advanced PDF converter.
$4,200
$2,100
$2,100
$2,100
Included
$34,000
NovusMEETING Software Meeting management software to record
motions votes and discussion
Additional Training- cost Onsite training includes travel
per day including travel.
IT staff Training to modify One day of training in Tampa, FL covering
Agenda/minutes layouts Template layouts and advanced user options.
Client cover their own travel costs.
Integration with Laserfiche Integration allows users to browse into
Document Management Laserfiche to attach files to items as well as
Solution
an export process to auto export complete
final minute and agenda packets to Laserfiche
for permanent storage
Integration with Granicus
Full Integration with Granicus includes:
• Sending agenda item directly into
Granicus Minutes maker with one
mouse click. There is no manual
import required.
• Importing final minutes with video
links back to the NovusAGENDA
database so the public can have a
single search interface for agenda
packets and minutes with video.
If a client desires Novusolutions to host the
Annual Hosting
code we offer hosting services for up to 8 GB
of Storage space as standard. Additional space
is available for $1,000 per GB per year
Customers with existing enterprise licenses of
Advanced PDF converter
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ITEM NO. &
AGENDA REPORT
Board Meeting Date: October 23, 2008
To: Board of Directors
From: Michael A. Payne, General Manager
Staff Contact: Pat Grady, IT Director
Diane Cyganik, Finance Director
Reviewed by General Counsel: N/A Budgeted: N/A
Funding Source:
CEQA Account No:
Compliance: N/A Estimated Costs:
Subject: Identity Theft Prevention Program
APPROVED BY THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
0 C T 2 1 2008
BY
Total Budget:
Job No:
Dept:
SUMMARY:
Pursuant to the Federal Trade Commission's Red Flag Rule, Section 114 of the Fair and
Accurate Credit Transaction Act of 2003, the District is required to adopt and implement an
Identity Theft Prevention Program by November 1St, 2008. Since the District maintains customer
personal information and extends credit to customers for their water accounts, the District is
subject to this requirement.
DISCUSSION:
Attached for the Board's review and consideration, is a proposed Identity Theft Prevention
Program, along with Resolution No. 08-12, which Staff believes meets the requirements of the
law. The policy identifies potential red flags for identity theft and actions to follow in the event
identity theft is suspected by Staff. Additionally, the policy outlines procedures to prevent identity
theft when establishing water service for both new and existing customers. Many of the
procedures outlined in the proposed program are in compliance with current practices.
However, the most significant impact of the proposed program is the manner in which new
customers establish water service. Currently, new customers have the ability to sign-up for
water service over the telephone by providing their personal information verbally. Because this
method does not provide Staff with definitive evidence as to true identity, the new procedure
would require customers to sign-up for service in person, where Staff is able to confirm identity.
Because of this significant impact, Staff is recommending that the new procedures in the policy
be effective January 1, 2009 to provide Staff the opportunity to plan, notify, and implement
properly. While the law requires that agencies have an Identity Theft Prevention Program in
place by November 1St, Staff is comfortable with the Board adopting a resolution approving the
proposed policy, with the understanding that the underlying procedures will go into effect
January 1 s , 2009.
PRIOR RELEVANT BOARD ACTION(S):
None
STAFF RECOMMENDATION:
That the Board of Directors adopt Resolution No. 08-12, approving an Identity Theft Prevention
Program for the District.
COMMITTEE RECOMMENDATION:
The Executive-Administrative-Organizational Committee discussed this item at its meeting held
on October 21 s`. Staff will report the Committee's recommendation at the Board meeting.
RESOLUTION NO. 08-12
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE YORBA LINDA WATER DISTRICT
ADOPTING AN IDENTITY THEFT PREVENTION PROGRAM
WHEREAS, the Federal Trade Commission ("FTC") has adopted regulations that
require "creditors" holding consumer or other "covered accounts" (which are defined to
mean any account where customer payment information is collected in order to bill for
services rendered) to develop and implement by November 1, 2008, an identity theft
prevention program that complies with those regulations; and
WHEREAS, because the Yorba Linda Water District (the "District") provides retail water
service to its customers, it is a "creditor" under the applicable FTC regulations and must
therefore comply with those regulations by adopting and implementing an Identity Theft
Prevention Program; and
WHEREAS, the District's Board of Directors desires to take action to comply with the
applicable FTC regulations by adopting an Identity Theft Prevention Program in policy
format; and
WHEREAS, the District's Identity Theft Prevention Program (the "Program") shall
endeavor to achieve the following goals:
a. To identify relevant patterns, practices and specific activities (referred to in
this Program as "Red Flags") that signal possible identity theft relating to
information maintained in the District's customers' accounts, both those
currently existing and those accounts to be established in the future;
b. To detect Red Flags after the Program has been implemented;
c. To respond promptly and appropriately to detected Red Flags to prevent or
mitigate identity theft relating to District customer account information; and
d. To ensure the Program is updated periodically to reflect any necessary
changes.
NOW, THEREFORE, BE IT RESOLVED that the District's Board of Directors hereby
adopts, and directs the General Manager to implement and administer, the Identity
Theft Prevention Program in policy format. The General Manager shall provide periodic
reports to the Board of Directors on the effectiveness of the Program and shall ensure
that all necessary District employees are properly trained to implement said Program.
- 1 -
PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Yorba
Linda Water District held on October 23, 2008.
Ayes:
Noes:
Absent:
Abstain:
President, John W. Summerfield
Yorba Linda Water District
ATTEST:
Secretary, Michael A. Payne
Yorba Linda Water District
-2-
Yorba Linda Water District
Policies and Pr
Policy No.:
Effective Date:
Prepared by:
Applicability:
ocedures Manual
31-08-01
01 /01 /2009
Diane Cyganik, Finance Director
Pat Grady, IT Director
District Wide
POLICY: Identitv Theft Prevention Proqram
1.0 PROGRAM ADOPTION
The Yorba Linda Water District ("District") developed this Identity Theft Prevention
Program ("Program") pursuant to the Federal Trade Commission's Red Flags Rule ("Rule"),
which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003,16
C.F.R. § 681.2. This Program was developed and approval of the Board of Directors at a
meeting held on October 23, 2008.
2.0 PROGRAM PURPOSE AND DEFINITIONS
2.1 Fulfilling requirements of the Red Flags Rule
Under the Red Flag Rule, every financial institution and creditor is required to establish an
"Identity Theft Prevention Program" tailored to its size, complexity and the nature of its
operation. Each program must contain reasonable policies and procedures to:
1. Identify relevant Red Flags for new and existing covered accounts and incorporate
those Red Flags into the Program;
2. Detect Red Flags that have been incorporated into the Program;
3. Respond appropriately to any Red Flags that are detected to prevent and mitigate
Identity Theft; and
4. Ensure the Program is updated periodically, to reflect changes in risks to customers
or to the safety and soundness of the creditor from Identity Theft.
2.2 Red Flags Rule definitions used in this Program
The Red Flags Rule defines "Identity Theft" as "fraud committed using the identifying
information of another person" and a "Red Flag" as a pattern, practice, or specific activity
that indicates the possible existence of Identity Theft.
According to the Rule, a municipal utility is a creditor subject to the Rule requirements. The
Rule defines creditors "to include finance companies, automobile dealers, mortgage
brokers, utility companies, and telecommunications companies. Where non-profit and
government entities defer payment for goods or services, they, too, are to be considered
creditors."
All the Utility's accounts that are individual utility service accounts held by customers of the
utility whether residential, commercial or industrial are covered by the Rule. Under the
Rule, a "covered account" is:
1. Any account the Utility offers or maintains primarily for personal, family or household
purposes, that involves multiple payments or transactions; and
2. Any other account the Utility offers or maintains for which there is a reasonably
foreseeable risk to customers or to the safety and soundness of the Utility from
Identity Theft.
"Identifying information" is defined under the Rule as "any name or number that may be
used, alone or in conjunction with any other information, to identify a specific person,"
including: name, address, telephone number, social security number, date of birth,
government issued driver's license or identification number, alien registration number,
government passport number, employer or taxpayer identification number, unique
electronic identification number, computer's Internet Protocol address, or routing code.
3.0 IDENTIFICATION OF RED FLAGS
In order to identify relevant Red Flags, the District considers the types of accounts
that it offers and maintains, the methods it provides to open its accounts, the methods it
provides to access its accounts, and its previous experiences with Identity Theft. The
District identifies the following red flags, in each of the listed categories:
3.1 Notifications and Warnings from Credit Reporting Agencies
Red Flaas
1. Report of fraud accompanying a credit report;
2. Notice or report from a credit agency of a credit freeze on a customer or applicant;
3. Notice or report from a credit agency of an active duty alert for an applicant; and
4. Indication from a credit report of activity that is inconsistent with a customer's usual
pattern or activity.
3.2 Suspicious Documents
Red Flaas
1. Identification document or card that appears to be forged, altered or inauthentic;
2. Identification document or card on which a person's photograph or physical
description is not consistent with the person presenting the document;
3. Other document with information that is not consistent with existing customer
information (such as if a person's signature on a check appears forged); and
4. Application for service that appears to have been altered or forged.
3.3 Suspicious Personal Identifying Information
Red Flags
1. Identifying information presented that is inconsistent with other information the
customer provides (example: inconsistent birth dates);
2. Identifying information presented that is inconsistent with other sources of
information (for instance, an address not matching an address on a credit report);
3. Identifying information presented that is the same as information shown on other
applications that were found to be fraudulent;
4. Identifying information presented that is consistent with fraudulent activity (such as
an invalid phone number or fictitious billing address);
5. Social security number presented that is the same as one given by another
customer;
6. An address or phone number presented that is the same as that of another person;
7. A person fails to provide complete personal identifying information on an application
when reminded to do so (however, by law social security numbers must not be
required); and
8. A person's identifying information is not consistent with the information that is on file
for the customer.
3.4 Suspicious Account Activity or Unusual Use of Account
Red Flags
1. Change of address for an account followed by a request to change the account
holder's name;
2. Payments stop on an otherwise consistently up-to-date account;
3. Account used in a way that is not consistent with prior use (example: very high
activity);
4. Mail sent to the account holder is repeatedly returned as undeliverable;
5. Notice to the District that a customer is not receiving mail sent by the District;
6. Notice to the District that an account has unauthorized activity;
7. Breach in the District's computer system security; and
8. Unauthorized access to or use of customer account information.
3
3.5 Alerts from Others
Red Flaq
Notice to the District from a customer, identity theft victim, law enforcement or other
person that it has opened or is maintaining a fraudulent account for a person
engaged in Identity Theft.
4.0 DETECTING RED FLAGS
4.1 New Accounts
In order to detect any of the Red Flags identified above associated with the opening
of a new account, District personnel will take the following steps to obtain and verify the
identity of the person opening the account:
Detect
1. Require certain identifying information such as name, date of birth, residential or
business address, principal place of business for an entity, driver's license, social
security number, or other identification;
2. Verify the customer's identity (for instance, review a driver's license or other
identification card);
3. Review documentation showing the existence of a business entity; and
4. Independently contact the customer.
4.2 Existing Accounts
In order to detect any of the Red Flags identified above for an existing account,
District personnel will take the following steps to monitor transactions with an account:
Detect
1. Verify the identification of customers if they request information (in person, via
telephone, via facsimile, via email);
2. Verify the validity of requests to change billing addresses; and
3. Verify changes in banking information given for billing and payment purposes.
5.0 PREVENTING AND MITIGATING IDENTITY THEFT
In the event District personnel detect any identified Red Flags, such personnel shall
take one or more of the following steps, depending on the degree of risk posed by the Red
Flag:
4
5.1 Prevent and Mitigate
1. Continue to monitor an account for evidence of Identity Theft;
2. Contact the customer;
3. Change any passwords or other security devices that permit access to accounts;
4. Not open a new account;
5. Close an existing account;
6. Reopen an account with a new number;
7. Notify the Program Administrator for determination of the appropriate step(s) to take;
8. Notify law enforcement; or
9. Determine that no response is warranted under the particular circumstances.
5.2 Protect customer identifying information
In order to further prevent the likelihood of identity theft occurring with respect to
District accounts, the District will take the following steps with respect to its internal
operating procedures to protect customer identifying information:
1. Ensure that its website is secure or provide clear notice that the website is not
secure;
2. Ensure complete and secure destruction of paper documents and computer files
containing customer information;
3. Ensure that office computers are password protected and that computer screens
lock after a set period of time;
4. Keep offices clear of papers containing customer information and ensure papers
with customer information are secured during non-business hours;
5. Request only the last 4 digits of social security numbers (if any);
6. Ensure computer virus protection is up to date; and
7. Require and keep only the kinds of customer information that are necessary for
District purposes.
6.0 PROGRAM UPDATES
This Program will be periodically reviewed and updated to reflect changes in risks to
customers and the soundness of the District from Identity Theft. At least every 6 months,
the Program Administrator will consider the District's experiences with Identity Theft
situation, changes in Identity Theft methods, changes in Identity Theft detection and
prevention methods, changes in types of accounts the District maintains and changes in
the District's business arrangements with other entities. After considering these factors, the
Program Administrator will determine whether changes to the Program, including the listing
of Red Flags, are warranted. If warranted, the Program Administrator will update the
Program and present the Board of Directors with his or her recommended changes and the
Board will make a determination of whether to accept, modify or reject those changes to the
Program.
7.0 PROGRAM ADMINISTRATION
7.1 Oversight
Responsibility for developing, implementing and updating this Program lies with an
Identity Theft Committee for the District. The Committee is headed by the General
Manager, designated as the Program Administrator, and consists of the Finance Director,
IT Director, and the Customer Service Supervisor. The Program Administrator, or his/her
designee, will be responsible for the Program administration, for ensuring appropriate
training of Customer Service staff on the Program, for reviewing any staff reports regarding
the detection of Red Flags and the steps for preventing and mitigating Identity Theft,
determining which steps of prevention and mitigation should be taken in particular
circumstances and considering periodic changes to the Program.
7.2 Staff Training and Reports
The Customer Service staff, responsible for implementing the Program, shall be
trained either by or under the direction of the Program Administrator in the detection of Red
Flags, and the responsive steps to be taken when a Red Flag is detected.
7.3 Service Provider Arrangements
In the event the District engages a service provider to perform an activity in
connection with one or more accounts, the District will take the following steps to ensure
the service provider performs its activity in accordance with reasonable policies and
procedures designed to detect, prevent, and mitigate the risk of Identity Theft. The District
shall require the following:
1. That service providers have such policies and procedures in place; and
2. That service providers review the District's Program and report any Red Flags to the
Program Administrator.
7.4 Specific Program Elements and Confidentiality
For the effectiveness of Identity Theft prevention Programs, the Red Flag Rule
envisions a degree of confidentiality regarding the District's specific practices relating to
Identity Theft detection, prevention and mitigation. Therefore, under this Program,
knowledge of such specific practices are to be limited to the Identity Theft Committee and
those employees who need to know them for purposes of preventing Identity Theft.
Because this Program is to be adopted by a public body and thus publicly available, it
would be counterproductive to list these specific practices here. Therefore, only the
Program's general red flag detection, implementation and prevention practices are listed in
this document.
6
ITEM NO.
MINUTES OF THE
YORBA LINDA WATER DISTRICT
EXECUTIVE-ADMINISTRATIVE-ORGANIZATIONAL COMMITTEE MEETING
October 21, 2008
A meeting of the Executive-Administrative-Organizational Committee was called to
order by Committee Chair John Summerfield on Tuesday October 21, 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
Pat Grady, IT Director
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:
Sean Fitzgerald and Heather Dion from Townsend Public Affairs, Inc. introduced to
themselves to the Committee members and attending staff.
DISCUSSION ITEMS:
5. Report on Grant Activities - Townsend Public Affairs.
The TPA representatives presented a summary report of the grant opportunities
matrix they had prepared and stated that no activity on these items would occur
until after the November elections. They also commented on a memorandum
update prepared on the State budget process. The Committee discussed impacts
on the grant funding process that the different presidential candidates would have
and TPA reported on their position to support the District's interests in either
scenario. The TPA representatives left the meeting following these discussions.
ACTION ITEMS:
1. Identity Theft Prevention Program.
Pat Grady presented an overview of staff's report. The Committee reviewed and
discussed the proposed Identity Theft Prevention Program, including the
supporting resolution, policy and procedures. The program is intended to comply
with requirements of the Federal Trade Commission's Red Flag Rule. The
Committee supported staff's recommendation that the Board adopt the program.
Pat Grady left the meeting following his presentation and this discussion.
2. Consider Terminating the Professional Services Agreement with Sacramento
Advocates, Inc.
The Committee discussed the purpose and intent of terminating an agreement with
Sacramento Advocates, Inc. Following discussion, the Committee supported
staff's recommendation that the Board authorize the General Manager to terminate
the agreement effective November 30, 2008. This matter is scheduled to be
tH
considered by the Board of Directors at their regular meeting on November 12
3. Fullerton Arboretum Water Conservation Garden Partnership.
The Committee discussed the requested partnership and financial sponsorship.
The Committee then advised staff to review options for levels of sponsorship and
determine if there are locations within the District's service area to develop and
display similar drought tolerant gardens. Staff will bring these discussion points
and alternatives back to a future meeting of the Committee.
DISCUSSION ITEMS:
4. Report on Legislative Activities - Sacramento Advocates
The Committee reviewed the report. General Manager Payne stated if there were
any questions that Barry Brockaw was available to discuss the report. The
Committee had no questions or comments.
6. Review of General Counsel's Final Report on 2008 Legislative Bills.
The Committee reviewed the report for the 2008 session of the California
Legislature. General Manager Payne commented that General Counsel would
present this report to the Board of Directors at the November 12th Board Meeting.
ADJOURNMENT:
The Committee adjourned at 4:55 p.m. The next Executive-Administrative-
Organizational Committee is scheduled for November 18, 2008, 4:00 p.m.
2
ITEM NO. 9b
MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE-ACCOUNTING COMMITTEE
October 14, 2008
A meeting of the Yorba Linda Water District Finance-Accounting Committee was called
to order by Committee Chairman Michael J. Beverage at 2:00 p.m. The meeting was
held at the District's offices, 1717 E. Miraloma Ave, Placentia.
DIRECTORS PRESENT:
Director, Michael J. Beverage, Chair
Director John W. Summerfield
STAFF PRESENT:
Michael Payne, General Manager
Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:
Mr. Nitin Patel, CPA and Ms. Daphnie Fuertez, CPA of Diehl, Evans & Company, LLP.
ACTION ITEMS:
1. Audited Financial Statements for Fiscal Year 2007/2008.
Mr. Nitin Patel, CPA and Ms. Daphnie Fuertez, CPA of Diehl Evans attended the
meeting to present the draft of the Financial Statements. The Committee reviewed
the Financial Statements and recommended that the Board of Directors receive and
file them. Both staff and directors agreed that one change on the Combining
Schedule of Revenues and Expenses would make the schedule clearer. Staff will
contact the auditors to effect the change.
DISCUSSION ITEMS:
2. Review of the Investment Report dated August 31, 2008.
The Investment Report for month ending August 31, 2008 was discussed and
accepted as presented. It was noted that capital project reserve and R&R reserve
accounts have been added and funded.
3. Status report on Wells Capital portfolio investments as of September 30, 2008.
The Committee called Keith Khorey to discuss the current market conditions. Keith
confirmed that Wells Fargo Bank is buying Wachovia, and that we only own two
corporate securities, Morgan Stanley and Wachovia, which both mature within a
month.
ADJOURNMENT:
The Committee adjourned at approximately 3:20 p.m. The next Finance-Accounting
Committee meeting is scheduled for November 10th at 8:00 a.m. at the District's offices,
1717 E. Miraloma Avenue, Placentia, CA.
ITEM NO. le-
MINUTES OF THE
YORBA LINDA WATER DISTRICT
PERSONNEL-RISK MANAGEMENT COMMITTEE MEETING
October 13, 2008
A meeting of the Personnel-Risk Management Committee was called to order by
Director Ric Collett Tuesday, October 13 at 4:00 p.m. The meeting was held at
the District Administrative Office at 1717 E. Miraloma Ave, Placentia.
COMMITTEE: STAFF:
Director Ric Collett Michael Payne, General Manager
Director John Summerfield Gina Knight, Human Resources Mgr
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:
None
ACTION ITEMS:
1. None.
DISCUSSION ITEMS:
2. ACWA/Health Benefits Authority - 2009 Health Plan Rating Restructure.
Staff updated committee on ACWA/HBA's two rates plans: Standard and
Incentive which will become effective January 1, 2009. Health Premiums
for 2009 have not been released from ACWA at time of meeting.
3. Status of Recruitments.
Staff gave an update on recruitments.
4. Status of CaIPACS 2008 Salary Survey.
Staff gave an update on the status of the Salary Survey. The committee
discussed the process and agencies used.
5. Status of Personnel on Administrative leave.
Staff reported the issue with the employee on leave has been resolved.
6. Status of Risk Management Activities.
Staff gave an update on risk management claims.
ADJOURNMENT:
The committee adjourned at 5:25 p.m. The next meeting of the Personnel-Risk
Management Committee meeting is scheduled for November 10, 2008 at 4:00
p. M.
ITEM NO.
MUNICIPAL
WATER
• DISTRICT
OF
ORNE
' COUNTY - October 8, 2008 APPROVED BY THE BOARD OF OIRECT02S
OF THE YORBA LINDA WATER DISTRICT
Street Address:
18700 Ward Street O C T 2 3 2008
Fountain Valley, California 92708
Mr. Mike A. Payne
Mailing Address: General Manager
P.O. Box 20895 Yorba Linda Water District BY
Fountain Valley, CA 92728-0895 P.O. Box 309
(714) 963-3058 Yorba Linda, CA 92885-0309
Fax: (714) 964-9389 cr""
www.mwdoc.com Dear Mr. Payne:
Wayne A. Clark On behalf of the Municipal Water District of Orange County (MWDOC) Board of
President Directors, I would like to invite you and your colleagues to our Water Policy
Joan C. Finnegan
Vice President Forum & Dinner on Wednesday, November 12, 2008, from 6:00-8:30 pm. at the
Ergun Bakall Hilton Orange County/Costa Mesa.
Director
Brett R. Barbre We are pleased to welcome back as our speaker, Timothy Brick, Chairman of the
Director Board of the Metropolitan Water District of Southern California. A 23-year
Larry D. Dick
Director member of the board, Mr. Brick is presently running unopposed for a second
Susan Hinman term as Chairman in the midst of one of the most challenging moments in
Director Metropolitan's 80 year history.
Ed Royce, Sr.
Director The statewide drought, dwindling water storage, regulatory cutbacks affecting
Kevin P. Hunt, P.E. water deliveries, and an unstable national finance system are just a few of the
General Manager
challenges presently confronting Metropolitan as it works to continue providing a
reliable and affordable supply of water to 17 million Southern Californians.
MEMBER AGENCIES
The realities confronting us today are that significant near-term water rate
City of Brea increases are inevitable; implementation of more aggressive water conservation
City of Buena Park measures because of drought and regulatory cutbacks is likely; and regional
East Orange County Water District
El Toro Water District water allocations and local water rationing are possibilities that must be taken
Emerald Bay Service District seriously and planned for accordingly. Strong and effective leadership from
City of Fountain Valley Metropolitan and its member agencies is essential in order to minimize the
City of Garden Grove impact of these conditions on the region.
Golden State Water Co.
City of Huntington Beach At the forum, Mr. Brick will not only discuss the major accomplishments of
Irvine Ranch Water District Metropolitan during his first term as chairman and his priorities for a second term,
Laguna Beach County Water District but will also explain what Metropolitan is doing to address today's challenges and
City of La Habra the role that local communities like ours play in ensuring a reliable water future
City of La Palma for all of Southern California.
Mesa Consolidated Water District
Moulton Niguel Water District To confirm your attendance at the MWDOC Water Policy Forum & Dinner, please
City of Newport Beach complete the enclosed reservation form and return it to MWDOC no later than
City of Orange Friday, November 7, 2008. You may fax it to (714) 964-5930 or return it by mail.
Orange County Water District
Orange Park Acres Mutual Water Co. If you need additional information, please contact Tiffany Baca at (714) 593-5013
City of San Clemente or tbaca(cDmwdoc. com.
City of San Juan Capistrano
Santa Margarita Water District
City of Seal Beach
Serrano Water District
South Coast Water District
Trabuco Canyon Water District
City of Tustin
City of Westminster
Yorba Linda Water District
Sincerely,
4H4 U-1
OCT 1 3 2008
Wayne A. Clark
Board President
MUNICIPAL
WATER
DISTRICT
OF
ORANGE
COUNTY
The Municipal Water District of Orange County
Water Policy Forum & Dinner
featuring
Tim Brick
Chairman of the Board
Metropolitan Water District of Southern California
A Tipping Point for Southern California?
The Effect of Drought, Diminishing Storage,
Water Cutbacks & Economic Instability
on the Management of Water.
WEDNESDAY, NOVEMBER 12, 2008
Hilton Orange County/Costa Mesa
3050 Bristol Street • Costa Mesa, California 92626
(South of the 405 Freeway)
$60.00 per person (includes validated self-parking)
No Host Bar • Business Attire
Reception 6:00 p.m.
Dinner 7:00 p.m. • Program 7:30 p.m.
Name:
South Coast Plaza
oC
Hilton Orange County/
Airport
Costa Mesa
I
3050 Bristol Street
Cnsta mesa
Avcnu,
(714)540-7000
Please complete and return a reservation form for each guest by Friday, November 7, 2008
Agency/Company:
Address:
E-Mail:
Title:
Phone:
City: State: Zip-
Fax:
Number of tickets: @ $60.00 (Includes validated self-parking. Discounted valet parking is available for $21.)
Meal Selection(s): Chicken Vegetarian
Total Payment Amount: $
Make checks payable to "Municipal Water District of Orange County." Advance payment preferred
All cancellations after November 7th and event "No-Shows" will be billed full amount.
Please mail or fax this form to...
Tiffany Baca
MWDOC
P.O. Box 20895
Fountain Valley, CA 92728
Phone: (714) 593.5013
Fax: (714) 964-5930