Loading...
HomeMy WebLinkAbout2008-11-24 - Executive-Administrative-Organizational Committee Meeting Agenda Packet• Yorba Linda Water District EXECUTIVE-ADMINISTRATIVE-ORGANIZATIONAL COMMITTEE MEETING Monday, November 24, 2008, 4:00 p.m. 1717 E. Miraloma Avenue, Placentia, CA 92870 - Tel: (714) 701-3020 AGENDA 1~1 • COMMITTEE Director John Summerfield, Chair Director William R. Mills STAFF Michael A. Payne, General Manager Ken Vecchiarelli, Asst. General Manager INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Any individual wishing to address the committee is requested to identify themselves and state the matter on which they wish to comment. If the matter is on this agenda, the committee Chair 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. ACTION ITEMS This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 1. Consider Resolution No. 08-XX Setting Time and Place for All Regular Meetings and Manner to Call Special Meetings and Rescind Resolution No. 90-41 Recommendation: That the Committee recommend to the Board of Directors to adopt Resolution No. 08-XX Setting Time and Place for All Regular Meetings and Manner to Call Special Meetings and Rescind Resolution No. 90-41. 2. Consider Resolution No. 08-XX Authorizing Individuals to Transfer Funds via the Federal Wire System and Rescind Resolution No. 06-02 Recommendation: That the Committee recommend to the Board of Directors to adopt Resolution No. 08 XX Authorizing Individuals to Transfer Funds via the Federal Wire System and Rescind Resolution No. 06-02. 3. Consider Reorganization of the Board of Directors to Select a President, Vice President and to Appoint Corporate Officers for Calendar Year 2009 Recommendation: That the Committee recommend to the Board of Directors nomination and election of a President and Vice President and appointment of the Corporate Officers. OR G ~A_ 4. Consider Board of Directors Committee Assignments for Calendar Year 2009 Recommendation: That the Committee provide a recommendation to the • Board of Directors on the Standing Committee Structure. 5. Consider Board of Directors Compensation for Calendar Year 2009 Recommendation: That the Committee provide a recommendation to the Board of Directors on Directors Compensation for Calendar Year 2009. DISCUSSION ITEMS This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda may also include items for information only. 6. Consider Policy for Approval of Board of Directors Meeting Minutes 7. Declaration of Conflicts of Interest During Public Meetings 8. Fullerton Arboretum Water Conservation Garden Partnership 9. Future Presentation to Board of Directors by LAFCO 10. Report on Legislative Activities - Sacramento Advocates 11. Report on Grant Activities - Townsend Public Affairs is 14. Scheduling Future OCWD Ad Hoc Committee Meetings 15. Status Report on Pass-Through Policy ADJOURNMENT The next regularly scheduled meeting of the Executive-Administrative-Organizational Committee will be held December 16, 2008 at 4:00 p.m. Items Distributed to the Committee Less Than 72 Hours Prior to the Meetinq Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to the Committee less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning Michael A. Payne, General Manager, 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. • 2 ITEM NO. / AGENDA REPORT • Committee Meeting Date: November 18, 2008 To: Executive-Administrative-Organizational Committee From: Michael A. Payne, General Manager Staff Contact: Same Reviewed by General Counsel: Yes Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: N/A Total Budget: N/A N/A Job No: N/A Dept: Admin Subject: Resolution No. 08-XX Setting Time and Place for all Regular Meetings and Manner to Call Special Meetings SUMMARY: Section 30521 of the Water Code provides that the Board of Directors shall: (a) provide for the time and place of holding its regular meetings; and, (b) provide for the manner of calling special meetings. DISCUSSION: Resolution No. 90-41 had identified 4622 Plumosa Avenue, Yorba Linda as the . official meeting place for all regular Board meetings. In May of 2008, the District moved the Administrative offices from 4622 Plumosa Drive, Yorba Linda to 1717 E. Miraloma Avenue, Placentia. Staff has prepared the attached Resolution that updates the principal office address of the District and location for all regular and special meetings of the Board. Legal Counsel has also added references to the Ralph M. Brown Act which governs in greater detail, the date, time and place of regular and special meetings of the Board. All other information in Resolution No. 90- 41 is still valid. PRIOR RELEVANT BOARD ACTION(S): Provisions for meeting time and place were formerly adopted by Ordinance No. 1, and subsequently amended by Ordinance No. 2 and by Ordinance No. 7. On December 27, 1990, the Board adopted Ordinance 90-03 which repealed Ordinance No. 1, No. 2 and No. 7. On December 27, 1990, the Board of Directors adopted Resolution No. 90-41 Setting Time and Place for all Regular Meetings and Manner to Call Special Meetings. STAFF RECOMMENDATION: That the Executive-Administrative-Organizational Committee recommend to the Board of Directors to adopt Resolution No. 08-XX Setting Time and Place for all Regular Meetings and Manner to Call Special Meetings and rescind Resolution No. 90-41. is RESOLUTION NO. 08-XX • RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING TIME AND PLACE FOR ALL REGULAR MEETINGS AND RESCINDING RESOLUTION NO. 90-41 WHEREAS, the Yorba Linda Water District was formed pursuant to Division 12 of the Water Code of the State of California; and WHEREAS, Section 30521 of the Water Code provides that the board shall: (a) provide for the time and place of holding its regular meetings; and, (b) provide for the manner of calling special meetings; and, WHEREAS, the Ralph M. Brown requires the Board to adopt the time and place for holding regular meetings (Government Code Section 54954(a)), requires that regular and special meetings of the board be held within the District's jurisdictional boundaries (GC § 54954(b)) and requires notice of special meetings to be provided to newspapers, radio and television stations when requested in writing (GC § 54956); and WHEREAS, Ordinance No.'s 1, 2, and 7 which provided the meeting time and place of the board were repealed by Ordinance 90-03 and replaced by Resolution No. 90-41 on December 27, 1990; and, • WHEREAS, since the adoption of Resolution No. 90-41, the principal office of the District has moved; and NOW, THEREFORE, the board of Directors of the Yorba Linda Water District does hereby resolve, determine and order as follows: Section 1: REGULAR MEETINGS. (a) Place. All regular meetings of the Board shall be held at the principal office of the District located at 1717 E. Miraloma Avenue, Placentia, California. (b) Time. All regular meetings of the Board of Directors shall be held on the second and fourth Thursdays of each month at 8:30 a.m.; provided however, that when the day fixed for any regular meeting of the Board of Directors falls upon a day designated by law as a legal or national holiday, such meeting will be at a time and place to be designated by majority vote of the Board. 0 (c) Adjournment. The Board may adjourn any regular or adjourned regular • meeting to a time and place specified in the motion of adjournment so approved by the Board. Section 2: SPECIAL MEETINGS. (a) Call. Special meetings of the Board of Directors may be called by the President or majority of members of the Board whenever in their opinion the District's business may require a special meeting of the Board. (b) Notice. Whenever a special meeting of the Board of Directors is called, notice in writing shall be delivered by the Secretary to each director, and if notice is requested in writing, to each local newspaper of general circulation and radio or television station. The notice shall be delivered personally or by any other means and shall be received at least twenty four (24) hours in advance of the meeting. The notice shall specify the time and place of such meeting and purpose of the meeting. The written notice may be dispensed with as to any Director who, at or prior to the time the meeting convenes, files with the Secretary a written waiver of notice. The waiver may be given by telegram. The written notice is may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. The notice shall be posted at least twenty four (24) hours prior to the special meeting on the District's bulletin board and will be mailed to any member of the public who requests, in writing. (c) Agenda. The agenda for a special meeting of the Board of Directors is limited to only those matters specifically set forth in the purpose of the call for the special meeting. No other business shall be considered at a special meeting. • 2 • • • (d) Adjournment. The Board may adjourn any special or adjourned special meeting to a time and place specified in the motion of adjournment so approved by the Board. PASSED AND ADOPTED this day of called vote: AYES: NOES: ABSENT: ABSTAIN: , 2008, by the following Yorba Linda Water District ATTEST: Michael A. Payne, Secretary Yorba Linda Water District APPROVED AS TO FORM: Arthur G. Kidman, Esq. McCormick, Kidman & Behrens , President 3 ITEM NO. ;,Z. • AGENDA REPORT Committee Meeting Date: November 18, 2008 To: Executive-Administrative-Organizational Committee From: Michael A. Payne, General Manager Staff Contact: Same Reviewed by General Counsel: No Budgeted: Yes Dept: Admin Funding Source: N/A Account No: Job No: CEQA Compliance: N/A Estimated Costs: $ Minimal staff costs Subject: Amending the Names of Individuals Authorized to Transfer Funds Via the Federal Wire System SUMMARY: The District's financial institution Wells Fargo Bank requires those individuals authorized to • transfer funds via the Federal Wire System for the District be designated by Resolution. Whenever authorized individuals are hired or leave the District, the Board of Directors must adopt a new Resolution updating those individuals authorized to wire funds. DISCUSSION: Any funds currently transferred via the Federal Wire System for the purpose of investing or transferring funds for payment of payables can be made by Michael A. Payne or Kenneth R. Vecchiarelli. Any funds transferred via the Federal wire system for any purpose other than investments and payables require approval by two persons. Any one of the Board members is authorized to be the first signer and either Michael A. Payne/Secretary, Kenneth R. Vecchiarelli/Assistant Secretary or Diane Cyganik/Auditor to be the second signer. With the retirement of Michael A. Payne as General Manager effective December 30, 2008, a new Resolution needs to be adopted incorporating the names of District employees authorized to transfer funds via the Federal Wire System. It is recommended that any funds transferred via the Federal wire system for any purpose other than investments and payables require approval by two persons. Any Board member is authorized to be the first signer and Kenneth R. Vecchiarelli/Assistant Secretary, or Diane Cyganik/Auditor to be the second signer. • The attached Resolution No. 08-XX incorporates the above changes and rescinds the current Resolution No. 06-02. • • PRIOR RELEVANT BOARD ACTION(S): The Board of Directors last amended the names of individuals authorized to transfer funds via the Federal Wire System when Resolution No. 06-01 was adopted on April 13, 2006 when Diane Cyganik was hired as the Finance Director/Auditor on April 3, 2006. STAFF RECOMMENDATION: That the Executive-Administrative-Organizational Committee recommend to the Board of Directors to adopt Resolution No. 08-XX Authorizing Individuals to Transfer Funds via the Federal Wire System and Rescind Resolution No. 06-02. • RESOLUTION NO. 08-XX • RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AUTHORIZING INDIVIDUALS TO TRANSFER FUNDS VIA THE FEDERAL WIRE SYSTEM AND RESCIND RESOLUTION NO. 06-02 WHEREAS, the Yorba Linda Water District (District) desires to transfer funds through the Federal Wire System; and WHEREAS, the transfer of funds through the Federal Wire System is authorized by signature and is completed electronically or by telephone if necessary, for the purpose of paying certain debts and making investments; and WHEREAS, financial institutions require that those persons authorized to sign District checks and transfer funds via the Federal Wire System be designated by a Resolution of the Board of Directors; and WHEREAS, on April 13, 2006, the Board of Directors adopted Resolution No. 06-02 which authorized the Secretary/General Manager, Assistant Secretary and Auditor as the designated representatives of the District to transfer funds via the Federal Wire System; and, WHEREAS, the District desires to remove Michael A. Payne, Secretary/General • Manager as a designated representative of the District to transfer funds, NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Kenneth R. Vecchiarelli/Assistant Secretary, or Diane Cyganik, Auditor, are both hereby authorized, as representatives of the District, to transfer funds via the Federal Wire System for the following purposes: a. Investments. Any funds transferred for the purpose of making investments on behalf of the Yorba Linda Water District must be for the credit of the Yorba Linda Water District, and can only be to financial institutions authorized by the latest adopted Investment Policy Resolution. b. Payables. Transfer of funds for payment of payables to the following: 1. Vendors requesting a wire transfer instead of a check. 2. To assure payment in a timely manner to avoid a financial penalty. c. Payment of payroll taxes. • d. Payment of 3~d party checks for insurance, deferred income, garnishment, CaIPERS, etc. Section 2. Any funds transferred via the Federal Wire System for any purpose other • than those specified in Section l(a) and/or (b) herein requires approval by two persons. Any one of the following five members of the Board of Directors is authorized to be the first signer: Paul R. Armstrong, Michael J. Beverage, Ric Collett, William R. Mills or John W. Summerfield. Kenneth R. Vecchiarelli/Assistant Secretary or Diane Cyganik, Auditor are hereby authorized to be the cosigners. These are the only signatures authorized to appear on the Wire Instruction Form for funds transferred under this section. Section 3. Sandi Van Etten, Senior Accountant, or Chau Le, Accounting Assistant II, will verify all wire transfers with Wells Fargo Bank that have been sent via the Federal Wire System. Section 4. That Resolution No. 06-02 is hereby rescinded effective immediately upon passage of this Resolution. PASSED AND ADOPTED this 11th day of December 2008 by the following called vote: AYES: NOES: ABSENT: • ABSTAIN: , President Yorba Linda Water District ATTEST: Kenneth R. Vecchiarelli, Assistant Secretary Yorba Linda Water District REVIEWED AS TO FORM BY GENERAL COUNSEL: Arthur G. Kidman, Esq. McCormick, Kidman and Behrens • 2 ITEM NO. AGENDA REPORT • Committee Meeting Date: November 18, 2008 To: Executive-Administrative-Organizational Committee From: Michael A. Payne, General Manager Staff Contact: Reviewed by General Counsel: Yes Budgeted: N/A Total Budget: N/A Funding Source: Water Operating Fund CEQA Account No: 111440 Job No: Compliance: N/A Estimated Costs: N/A Dept: Admin Subject: Reorganization of the Board of Directors for Calendar Year 2009 SUMMARY: Pursuant to the Board of Directors Rules for Organization and Procedure, as adopted in November 2007, a President of the Board and a Vice-President shall be elected annually at the District's reorganization meeting held at the first regular meeting of the Board in December of every year. DISCUSSION: • The powers and duties of the President are described in Section 30578 of the Water Code and the Board of Directors' adopted Rules and Regulations. The President's duties prescribed by state law are: a. Sign all contracts on behalf of the district. b. Perform other duties imposed by the board. The President's duties prescribed by the Board Rules for Organization and Procedure are to: a. Assume the chair of the Presiding Officer immediately after election. b. Make Committee assignments, subject to consent of the Board, annually at the first Board of Directors meeting in January of the subsequent year. c. Conduct the proceedings of the Board. d. Sign all ordinances, resolutions and contract documents approved and adopted by the Board. The Vice President's duties are set forth in the District's Rules and Regulations and not state law. The Vice President carries out the duties of President in the absence of the President. In addition to selection of the President and Vice President, the Board is required to appoint the • Municipal Corporation Officers of Secretary, Assistant Secretary and Auditor. The duties of the Secretary, Assistant Secretary and Auditor are set forth in the Rules for Organization and Procedures. • • a. The Secretary, or Assistant Secretary in the absence of the Secretary, attests all Ordinances and Resolutions approved and adopted by the Board of Directors. b. Prepares the official record of proceedings or minutes for Board meetings and performs all duties as prescribed by state law, the Rules for Organization and Procedures, and as may be imposed by the Board of Directors. The Auditor shall perform all duties as prescribed by state law, the District's Rules for Organization and Procedures and as may be imposed by the Board of Directors. State law forbids a member of the Board of Directors from serving as the General Manager, Secretary, Assistant Secretary or Auditor. State law allows the same person to be appointed as General Manager and Secretary or, Secretary and Auditor. State law does forbid the General Manager from services as Auditor. Pursuant to Board policy, there is no additional compensation for serving as Secretary, Assistant Secretary or Auditor if the individual is an employee of the District. If the appointed individual is not an employee of the District, then the Board of Directors is allowed to set compensation for that individual. PRIOR RELEVANT BOARD ACTION(S): On December 13, 2007, the Board of Directors nominated Director Summerfield as President and Director Mills as Vice President of the Board of Directors. In addition, the Board appointed the following as Corporate Officers: Secretary Michael A. Payne, General Manager Assistant Secretary Kenneth R. Vecchiarelli, Assistant General Manager Auditor Diane Cyganik, Finance Director STAFF RECOMMENDATION: That the Executive-Administrative-Organizational Committee recommend nomination and election of a President and Vice President and appointment of the following Corporate Officers: Secretary Kenneth R. Vecchiarelli, Assistant General Manager Auditor Diane Cyganik, Finance Director 40 History of Director Seats Date Director Director Election Dec. 22, 1958 Crist Wagner Election Mar. 27, 1962 Crist Wagner Aug. 8, 1962 Aug. 8, 1962 McGuire appointed Election Mar. 24, 1964 Election Mar. 22, 1966 McGuire Wagner Jun. 8, 1966 Jun. 8, 1966 1966 Law changed Election date to November - odd number years Election Nov. 7, 1967 Election Nov. 28, 1969 McGuire Wagner No election - only Incumbents filed. Election Nov. 2, 1971 Jul. 26, 1973 Aug. 9, 1973 Lindow appointed Election Nov. 6, 1973 Lindow Wagner Mar. 1, 1975 Apr. 17, 1975 Election Nov. 4, 1975 Election Nov. 8, 1977 Lindow Wagner Mar 2, 1978 Apr. 13, 1978 Cromwell appointed Election Nov. 30, 1979 No election - only Incumbents filed. Election Nov. 3, 1981 Lindow Cromwell Apr. 1, 1982 May. 17, 1982 Election Nov. 8, 1983 Nov. 28, 1984 Jan. 19, 1985 'Director D rector Director Hastings i Codt Milmoe Hastings Clodt Milmoe Hastings Knauft appointed Clodt Knauft Hastings Clodt Knauft Hastings ?~Q9"D~~di81N81%i' Korn appointed Korn Clodt Knauft (To fill unexp. term) Korn Clodt Knauft Korn • If.Tr k1lim ;Armstrong appointed Clodt Knauft (To rillunexp.term) Mills appointed Election Nov. 5, 1985 Fox Cromwell Armstrong Mills Lindow didn't run (to fill unexpired term) No election - only Incumbents filed. Jan. 12, 1987 Resolution 87-06 changed date to coincide with General Election in even num rer years. Sep. 1, 1987 Oct. 22, 1987 Election Nov. 8, 1988 No election - only Incumbents filed. Jul. 6, 1990 n• - r. Election Nov. 6, 1990 Fox Scanlin Armstrong Election Nov. 3,1992 Election Nov. 8, 1994 Fox Scanlin Armstrong No election - only Incumbents filed. Election Nov. 5,1996 No election - only Incumbents filed. Oct. 17, 1998 Fox moves away - no replacement appointed lection Nov. 3, 1998 Barbre Abramowitz Armstrong Election Nov. 7, 2000 Dec.31,2000 1 Feb. 15, 2001 Summerfeld appointed. Election Nov. 5, 2002 ~mmerfleld -Mills Armstrong Election Nov. 2, 2004 Election Nov. 7, 2006 Summerfield Mills Armstrong No election - only Incumbents filed. Election Nov 4, 2008 iTTI • • Korn appointed Korn Knauft Korn Knauft didn't run Korn Beverage Korn Beverage Beverage Korn didn't run Korn didn't run (Schwing-Collette) (Schwing-Collette) Collette Beverage (Rosenberger) (Rosenberger) is • • • President/Vice President rotation President: Beverage Armstrong 1996 Bev 1997 Arm 1998 1999 2000 Bev v1 l 2001 Arm a enua 2002 1 UdI 2003 2004 2005 Bev 1 2006 2007 12007 2008 Arm Collette (Korn) Col Korn Korn Mills (Abramowitz) (Scanlin) Scan Col Summerfield (Barbre) (Fox) Mills (Abramowitz) (Scanlin) Mills Fox Sum Mills Mills /1: /1• MM __ MM Vice President: Beverage Armstrong Collett (Korn) Summerfield (Barbre) (Fox) 1996 Arm 1997 Fox 11998 11999 Bev 2000 Arm 2001 Korn 2002 Sum 2003 2004 Bev 2005 Arm 2006 12007 2008 Col Sum Mills (Abramowitz) (Scanlin) Scan Mills Mills Notes: 1 Assumes each director will remain in service during their current term AND win reelection. 2 Assumes the Board goes back to the tradition of rotating the Presidency which began in 1990. 11• ITEM NO. `I AGENDA REPORT • Committee Meeting Date: November 18, 2008 To: Executive-Administrative-Organizational Committee From: Michael A. Payne, General Manager Staff Contact: Same Reviewed by General Counsel: Yes Budgeted: Yes Total Budget: $ 61,740 Funding Source: Water Operating Fund CEQA Account No: 121780 Job No: Compliance: N/A Estimated Costs: $ 61,740 Dept: Admin Subject: Annual Board of Directors Committee Assignments. SUMMARY: Immediately following the election of the President of the Board of Directors, the newly elected President assigns the members of the Board of Directors to the various standing committees. DISCUSSION: Pursuant to Board of Directors Rules for Organization and Procedure, the Board has five • standing committees. Each committee consists of two Directors, and each Director is assigned to two standing committees. Standing committees are a means for study and discussion of specific issues facing the District. They are a source of ideas and a vehicle to garner viewpoints. They handle time consuming research and special work, which cannot normally be handled by the Board as a whole. The committees report to the Board giving them policy advice in the areas of each committee's expertise. They also assist staff in developing work headed to the Board for action. The following is a description of each standing committee and Directors currently assigned to each committee. Executive-Administrative-Organizational Meets 3rd Tuesday @ 4:00 p.m. Directors Summerfield and Mills To study advise and make recommendations to Alternate: Collett the Board of Directors with regard to policy, organization, legislative and legal issues and the Board Goals Workshop. • Finance-Accounting Meets 2nd Monday @ 4:00 p.m. Directors Beverage and Summerfield To study, advise and make recommendations to Alternate: Mills the Board of Directors with regard to budgets, • investments, rates, fees and charges, financial reports, auditors, and appropriations. Personnel-Risk Management Meets 2"d Tuesday @ 4:00 p.m. Directors Armstrong and Collette To study, advise and make recommendations to Alternate: Summerfield the Board of Directors with regard to personnel, employee relations, labor related issues and insurance procurement. Plan ning-E noineerinq-Operations Meets 1St Thursday @ 4:00 p.m. Directors Mills and Armstrong To study, advise and make recommendations to Alternate: Beverage the Board of Directors with regard to five year plans, construction activities, customer service, operations and maintenance, building, equipment, property and fire defenses. Public Information Technoloov Meets 1 st Tuesday @ 4:00 p.m. Directors Collett and Beverage To study, advise and make recommendations to Alternate: Armstrong the Board of Directors with regard to all public information activities, drought activities, community involvement and to promote water conservation • measures. The Board of Directors currently has four ad-hoc Committees: OCWD Ad-Hoc Committee No Directors currently assigned MWDOC Ad-Hoc Committee Directors Mills and Collett Alternate: Summerfield Temporarily Discontinued To study, advise and make recommendations to the Board of Directors with regard to Orange County Water District policy issues. Meets every other month 3rd Tuesday 0- 4:00 p.m To study, advise and make recommendations to the Board of Directors with regard to Municipal Water District of Orange County issues. Building Ad-Hoc Committee Meets 3rd Tuesday (a) 4:00 p.m. Directors Summerfield and Beverage To study, advise and make recommendations to Alternate: Armstrong the Board of Directors with regard to the new administration building issues. Citv of Placentia Ad-Hoc Committee Meets every other month Director Beverage and GM To study, advise and make recommendations to • the Board of Directors with regard to the City of Placentia regarding water or sewer issues. The Board of Directors is involved in several Intergovernmental and "Other" meeting assignments. They include: 0 District/City of YL Finance Committee Metropolitan Water District: Municipal Water District of O.C.: Orange County Water District: Placentia City Council: Placentia Planning Commission: Yorba Linda City Council: Yorba Linda Planning Commission: ACWA/JPIA Representative: ACWA Region 10: ISDOC: LAFCO: WACO: Assigned to Finance Committee No assignment No assignment No assignment No assignment No assignment Director Mills and Director Mills Director Collett and Director Armstrong Director Mills; Director Armstrong (Alternate) No assignment Director Mills Director Beverage Director Mills PRIOR RELEVANT BOARD ACTION(S): The newly elected Board President assigns each Board member to various committee assignments for the upcoming year in January. President Summerfield made the current committee assignments in January 2008. STAFF RECOMMENDATION: • That the Executive-Administrative-Organizational Committee review the current committee structure and if changes are deemed necessary, provide a recommendation to the Board of Directors. 0 ITEM NO. 6' AGENDA REPORT . Committee Meeting Date: November 10, 2008 To: Executive-Administrative-Organizational Committee From: Michael A. Payne, General Manager Staff Contact: Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 61,740 Funding Source: Water Operating Fund CEQA Account No: 111440 Job No: Compliance: N/A Estimated Costs: $ 61,740 Dept: Admin Subject: Annual Review and Consideration of the Board of Director's Compensation SUMMARY: Each year the Board of Directors reviews their compensation for attending the various meetings for the upcoming year. The current compensation is set at $150.00 per day for each day's service rendered as a member of the Board of Directors up to a maximum of ten days per month. DISCUSSION: • Ordinance No. 03-01 does not include a provision for automatic five percent annual increases. An adjustment in Board compensation requires a public hearing and adopting a new ordinance that must be published in a local newspaper before it is effective. State law allows the Board to adjust compensation by a maximum of five percent once each calendar year. For 2009, the Board could adjust their compensation by five percent to a maximum of $157.50 per meeting. The approved budget for Director's salaries for the fiscal year 2008-2009 is $61,740. The total was calculated using the compensation policy set forth in Ordinance 03-01 applied to an estimated number of Board, Committee and other meetings each Director attends. If all directors attended the maximum of 10 meetings a month for the entire year based upon the current compensation rate, the compensation would be $90,000. PRIOR RELEVANT BOARD ACTION(S): In January 2003, the Board of Directors adopted Ordinance 03-01 which set the current compensation at $150.00 per day for each day's service rendered as a member of the Board of Directors up to a maximum of ten days per month. On November 21, 2007, the Board of Directors voted to leave the compensation rate at its current level with no increase. STAFF RECOMMENDATION: It is recommended that the committee provide a recommendation to the Board of Directors on the Board of Director's Compensation. • U Year Internal External 1991 $125 $50 1992 $125 $50 1993 $125 $50 1994 $125 $50 1995 $125 $50 1996 $125 $50 1997 $125 $50 1998 $125 $50 1999 $125 $50 2000 $125 $50 2001 $125 $50 2002 $125 $50 2003 $150 $150 2004 $150 $150 2005 $150 $150 2006 $150 $150 2007 $150 $150 2008 $150 $150 2009 Maximum Adjustment << Changed to single rate $ 7.50 Pay rule: Increase by 5% per year. CANNOT compound increases. 0 ITEM NO. /O Barry S. Brokaw Sacramento Advocates, Inc. Donne Brownsey A California based Public Affairs and Governmental Relations Firm Daniel E. Boatwright 1215 K Street, Suite 2030 - Sacramento, CA 95814 • General Counsel Phone (916) 448-1222 • Fax (916) 448-1121 MEMORANDUM To: Yorba Linda Water District Board of Directors From: Barry Brokaw Re: State Capitol Monthly Update Date: November 14, 2008 Overview In my report last month, I wrote that the Governor's Department of Finance reported revenues were running under expectations, and it appeared to them that the State Budget would be running $3.2 billion in the red by the June 30, 2009 closer of this fiscal year. State Treasurer Bill Lockyer examined the same data and predicted the deficit would be $4.6 billion. Looking back, that was a very cheery prediction. Just last week, Governor Schwarzenegger announced the state budget deficit was now running at a rate of $11.2 billion by the close of this fiscal year, with red ink continuing through June 2010 producing a deficit currently estimated to be $24.2 billion by June 2010. The total State General Fund is $103 billion, so cuts alone won't come close to solving a problem of this magnitude. • The Governor announced a plan earlier this month to close to close $9.2 billion of the $11.2 billion budget deficit and called the Legislature into a lame duck Special Session to confront the problem. Legislative committees have begun holding hearings on the budget crisis and the Governor's plan to address the crisis. His plan currently calls for: $4.7 BILLION IN TAX INCREASES, INCLUDING: • Increasing the sales tax for three years by 1 1/2 cents on the dollar • Expanding the sales tax to include some services, including car repair, furniture repair, sports events, amusement parks, and playing a round of golf. • an oil severance tax on crude oil produced in California $4.5 BILLION IN CUTS, INCLUDING: • A $2.5 billion cut to K-12 public schools • Furloughing state employees one day a month and eliminating Columbus Day and Lincoln's Birthday as paid state holidays (losing two of their 13 paid holidays). The Politics of the ChallenLye The Governor is entering the most challenging budget negotiations of his five-year tenure. His plan relies on GOP legislators voting for $4.7 billion in taxes less palatable than those they rejected this summer during the record 85-day budget stalemate. It also asks Democrats to accept a $4.5 billion round of cuts in • education, social services, and furloughs of union employees. Even then, the plan falls $2 billion short of closing the entire projected $11.2 billion gap through June 2009, according to Department of Finance Director Michael Genest. Without immediate action, the state will run out of cash by February. Additionally, without immediate action, the cuts and tax increases likely needed to bring the deficit under control will need to be even more significant as the state moves into the • next budget year. A continuing drop in the economy, also likely, could make the deficit even greater, evidenced by the just-released analysis of the problem by the non-partisan Office of the Legislative Analyst. The LAO believes the state faces a nearly $28 billion hole through June, 2010, above the $24.2 billion projected by the Department of Finance. It is extremely difficult to keep up with the continuing negative economic news. With a two-thirds vote of the Legislature required for budget passage, it is apparent that Democrats and Republicans are going to have to make significant gives on this one. The question is whether they will have the political will to achieve a solution. The Legislative Analvst Proiects Maior Problems Through 2013-14 In a report issued this week, the LAO piled on with more tough news. The key points were these: State Faces $27.8 Billion Shortfall. The LAO concurs with the administration's assessment that the state's struggling economy signals a major reduction in expected revenues. Combined with rising state expenses, they project that the state will need $27.8 billion in budget solutions over the next 20 months. Long-Term Outlook Similarly Bleak. The state's revenue collapse is so dramatic and the underlying economic factors are so weak that they forecast huge budget shortfalls through 2013-14 absent corrective action. From 2010-11 through 2013-14, they project annual shortfalls that are consistently in the range of $22 billion. Early Action Is Critical Lastly, the LAO said, "With the expected slow recovery of the state's economy, it is imperative that the • Legislature attack the grim budget problem aggressively, making permanent improvements to the state's fiscal outlook. If the state has any hope of developing a fiscally responsible 2009-10 budget, it must begin acting now." The New Legislature Commences Work on December 1. 2008 The lame duck Special Session will conclude November 30, 2008 and the newly elected legislators will pick up the problem after being sworn in on December 1, 2008, assuming there is no resolution over the next two weeks. The Assembly picked up a net of two Democratic seats, and the margin is now 50D-30R. It appears that the Senate will remain 2513-15R. Four Assembly Republican votes would be required for new taxes, and two Senate Republican votes would be required. It is quite clear that the fiscal problems of the state will dominate the upcoming year, although the Governor continues to say he will press for a $10 billion General Obligation water bond for the 2010 state ballot. He views that matter as a critically important "investment" as opposed to expenditure. Stay tuned for the December report. Bets on the new deficit figure next month? • 2 ITEM NO. /r Toinsend • PUBLIC AFFAIRS, INC. MEMORANDUM To: Yorba Linda Water District, Executive Committee From: Christopher Townsend, President Sean Fitzgerald, Senior Director Heather Dion, Director Date: November 14, 2008 Subject: Activity Report State Political Hiahliahts On October 28th, at an impromptu press conference in front of the Governor's Office, the Governor announced that he plans to call the Legislature back into special session on November 5th to deal with the growing budget deficit. Just five weeks after the Governor signed the 2008-09 budget, there are estimates that the current budget deficit is at least $3 billion and is likely significantly higher. The Department of Finance is expected to weigh in prior to the special session with a more accurate accounting of the budget deficit. • In his press conference the Governor seemed to indicate that everything would be on the table in this lame-duck session, including: tax credits, revenue enhancements, accelerated issuance of infrastructure bonds, mortgage reform, and traditional budget cuts. The exact parameters of the special session will not be known until the Governor issues his proclamation calling for the special session. Once back in session, the current Legislature will have to move quickly as the new session begins on December 1St and at that point a new special session would have to be called with the incoming members of the Legislature. Additionally, provisions of the California Constitution will result in the Legislature having less than two weeks to craft a solution to this budget problem, which will likely require a two-thirds vote of each house of the Legislature. The legislature only has until November 15th to send all legislation to the Governor for consideration, which is a mere 10 days to add on major fiscal issues. During the press conference the Big 5 did not announce any concrete solutions, but did announce that they are in contact daily and planned to establish a independent commission to review and make recommendations on how to improve California's tax code. Subsequently, the Governor held a press conference the Thursday following the election to outline his priorities for the special session related to the budget. Prior to speaking about solutions, the Governor confirmed previous rumors that the State is • facing a proposed deficit of $11.2 billion in the current fiscal year. Additionally, the State is facing another cash crisis and will likely run out of cash in February or March. In order to address this deficit the Governor, and future deficits, the Governor outlined five areas that the legislature should address in the special session: Reduction in soendina on current vear Droarams • The Governor is proposing to reduce current year spending on state programs by $4.5 billion. These reductions will likely include cuts to education and health and human services programs. Additionally, the Governor spoke about the possibility of a furlough program for state employees where they would take one day a month off unpaid. The Governor did mention that he does not want to have to make cuts to public safety and other key programs. Increase in revenues • The Governor has proposed that the State raise revenues to generate $4.4 billion in the current year. The cornerstone of this proposal would be a temporary sales tax increase of 1.5%. The Governor dismissed the idea of raising the VLF (even though there is a proposed $12 increase in "motor vehicle fees"), citing the struggles of the auto industry and not wanting to add to their problems. The Governor acknowledged that it would be difficult to get the required two-thirds vote, but indicated that given the current economy and with the passage of the elections, some legislators may be willing to vote for revenue enhancements. Economic stimulus • The Governor is in favor of rapidly dispersing bond funds, including: $204 million in water bond funding (Prop 1 E), $700 million in transportation bond funding, etc. The Governor also proposed non-funding proposals aimed at expediting projects, such as exempting bond projects from CEQA, expedited permitting for hospital construction, and labor law reform (flex scheduling, etc). • Stabilize foreclosure/housina market The Governor urged the legislature to take up measures which would provide incentives for the modification of bad loans. Additionally, he will work with the feds to expedite previously approved emergency housing funding. Unemolovment Insurance Fund The Governor acknowledged that the UIF is facing insolvency at a time when it is needed most. The Governor will work with the legislature to pass legislation that would require business to slightly increase their contributions to the fund while slightly reducing the benefits. Both houses of the Legislature are set to meet this week; however, it is unlikely that any real action will be taken. The Legislature will convene the session, form committees and then adjourn for the day. The bulk of this work will be done in Big 5 meetings and not through public committee hearings. The Legislature has a very short timeframe in which to enact the above measures. There is some debate as to when the legislature must act by, but it is agreed that if the Legislature does not act by November 30th, the special session will need to be closed and then a new session would need to be convened once the new legislature is sworn in on December 1St As of this writing the Governor has not called the Legislature back into session. U • • • Vnrha I inrin Wnfnr Ilicfrir-f PROGRAM OR FUNDING OPPORTUNITY FUNDING AMOUNT CURRENT STATUS CURRENT ACTIVITIES UPDATE Current Opportunities Pending• FY 09 Federal Total request in Appropriation form TPA continues to 11 /14- Congress will be Appropriations - FY 09: $1.6 submitted to Congressman advocate with Miller's going back into session Highland Reservoir million Miller's office and pending D.C. and District offices, starting the 17th. At that Replacement Project subcommittee markup, which and with the Congressman point it is likely they will is not likely to occur until himself on this request. pass another continuing after the November election. We are also working with resolution until the Congressman Calvert's remaining FY 09 spending office in support of the bills can be agreed upon. request given his Decisions on these bills appropriations committee may not come until after position. We have the 1s' of the year. recently spoken with Mr. However, there may be Miller's office about the another opportunity for possibility of having the Congress to fund reservoir enhancements infrastructure projects funded through the House already in the pipeline for proposed Economic funding through the Stimulus package. This proposed $120 billion bill is currently pending economic stimulus upon the return of package. This package Congress after the will be taken up upon the election. return of Congress in mid November. Also, there is likely going to be two economic stimulus packages. The first would Townsend Public Affairs, Inc. November 14, 2008 • • • Yorba Linda Water District Fundinq Opportunity Matrix Townsend Public Affairs, Inc. November 14, 2008 be to deal with the unemployment rate, occurring immediately and creating funding before the end of the year. The second package to be considered in spring of 2009 would be funding for public infrastructure projects such as water and transportation. FY 2010 - Water TBD WRDA forms for the Bryant Senator Boxer's 11 /14- Congressman Resources Ranch Non - potable Irrigation Environment and Public Miller's call for WRDA Development Act System were submitted to Works staff is finalizing projects occurred in May (WRDA) Call for both Congressman Miller and the collection of forms 2008, Senator Boxer's Projects Senator Boxer. and the official form was just due on reauthorization process September 12th. TPA will begin early summer submitted the Boxer 2009 form on September 9th. Senator Boxer is prepared to begin working on a WRDA reauthorization in the spring or summer of 2009. This first call for projects is an attempt to see how many requests came forward and the overall funding needs nationally for such funding. Townsend Public Affairs, Inc. November 14, 2008 • • 0 Yorba Linda Water District Fundinq Opportunity Matrix Proposition 50 - Dept. Total request in This pre - proposal grant was TPA continues to monitor 11 /14 - We are just of Public Health Grant FY 08: $500,000 submitted in November 2007. DPH's release of those waiting on the remainder Program - Non potable DPH did release a partial applications that will be of the list to be published Irrigation Project listing of pre - proposals that invited back to submit for which should include will be invited back for the the full proposal round. YLWD's submissions. full proposal phase, but the entire list was not posted. DPH estimates the remainder of the list will be available at the end of November. Should YLWD be invited back for the full proposal phase, the list out at the November would include it. Proposition 50- Dept. Total request in This pre - proposal grant was TPA continues to monitor 11 /14- The final list is of Public Health Grant FY 08: $380,000 submitted in November 2007. DPH's release of those still pending. Program - Well Head DPH has not released a list of applications that will be No. 15, Removal of applicants who will be invited back to submit in Arsenic and Maganese invited back for the full the full proposal round. proposal round. Future Opportunities: Proposition 50 - Dept. TBD - DWR is The grant application TPA is working with YLWD 11 /14 -- Originally this of Water Resources currently submission grant is unknown to decide on an pre - proposal application Water Use Efficiency updating the at this point. appropriate project was due on August 20th, Grant Program guidelines. application for this but DWR is reworking the opportunity. guidelines and has not yet determined when the applications will be due. Townsend Public Affairs, Inc. November 14, 2008 • • • Yorba Linda Water District Fundina Omortunity Matrix Townsend Public Affairs, Inc. November 14, 2008 DWR continues to postpone a call for projects at this time. However, based on the Governor and Legislature's effort to fast track existing unappropriated infrastructure bond funding, we expect to see a call for project in very early 2009 Proposition 84 - TBD- DWR is There are two planning TPA is working with YLWD 11 /14- DWR has not yet Integrated Regional planning on processes occurring that staff to be included in finalized the draft Water Management sending out YLWD has the opportunity to both of the planning guidelines for the Prop 84 Program draft guidelines be included in. The first is processes, and determine IRWMP, but expects to for public the SAWPA One Watershed eligible projects for release those very late comment late process. The second is the submission into the plans. this year or early next summer 2008. County of Orange's North year. From that point County IRWMP. regional plans must first go through a regional acceptance check off with DWR to even apply for funding. Both SAWPA and the County of Orange are preparing to submit to receive regional acceptance and subsequently request for projects from individual agencies and sub - regions all within the Santa Ana Townsend Public Affairs, Inc. November 14, 2008 • • • Yorba Linda Water District Fundinq Opportunity Matrix Townsend Public Affairs, Inc. November 14, 2008 Regional Funding area. Proposition 84 - Park With the passage YLWD staff has identified a The Legislature did not 11 /14- Our first step is to Funding of AB 31, the number of reservoirs that actually appropriate a fully develop a Dept. of Parks could be recovered with first round of funding partnership between the and Recreation synthetic turf for city and from the $400 million. School District and the have now begun school district recreational However, DPR plans to YLWD to begin developing to development use. We will be exploring this move forward with the the outline for a project grant guidelines partnership this fall in order grant process with the and ultimately a grant to expend the to begin developing a idea that the Legislature application. We will work $400 million in comprehensive project will put money into the with the YLWD staff on Prop 84 for outline for implementation FY 2010 budget and thus setting up these meeting passive and on the synthetic turf plan. DPR can award funding between now and the active use parks. once the budget is holiday season. approved next year. Townsend Public Affairs, Inc. November 14, 2008