HomeMy WebLinkAbout2009-02-26 - Board of Directors Meeting Agenda Packet
Agenda Packet
Regular Meeting of the
Board of Directors
February 26, 2009
8:30 a.m.
1717 E. Miraloma Avenue, Placentia, CA 92870
Yorba Linda
Water District
Yorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, February 26, 2009, 8:30 A.M.
1717 E. Miraloma Avenue, Placentia, CA 92870 (714) 701- 3020
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
John W. Summertield, President
William R. Mills, Vice President
Paul R. Armstrong
Michael J. Beverage
Ric Collett
ADDITIONS/DELETIONS TO THE AGENDA
PUBLIC COMMENTS
Any individual wishing to address the Board is requested to identify themselves and state the matter on which they
wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the
item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of
public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes.
SPECIAL RECOGNITION
Introduce Mikael Becker, newly hired Meter Reader I.
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.
1. Investment Outlook Highlights, Keith Khorey, Wells Capital Management.
Recommendation: This is for information only. No action is required.
CONSENT CALENDAR
All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering
previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be
no discussion on the items unless a member of the Board, staff, or public requests further consideration.
2. Minutes of the Regular Board of Directors Meeting Held February 12, 2009
Recommendation: Approve the minutes as presented.
3. ACWA/JPIA Property Insurance Premium for April 2009-2010
Recommendation: Authorize payment in the amount of $33,112 to renew
the District's property insurance coverage through ACWA/JPIA for the
period of April 1, 2009 through April 1, 2010.
4. Payment of Bills, Refunds, and Wire Transfers
Recommendation: Ratify and authorize disbursements in the amount of
$595,763.87.
5. Financial Statements for Quarter Ending December 31, 2008
Recommendation: Receive and file the financial statements for the
quarter ending December 31, 2008.
6. Investment Report for Quarter Ending December 31, 2008
Recommendation: Receive and rile the investment report for the quarter
ending December 31, 2008.
7. Quitclaim Deeds to Friendship Baptist Church
Recommendation: Authorize the President and Secretary to execute two
Quitclaim Deeds to Friendship Baptist Church, abandoning two separate
sections of the 15-foot wide District easement recorded as Instrument
Number 19990159769 of Official Records of Orange County, California.
8. Quitclaim Deed to Yorba Linda Housing Partners, L.P.
Recommendation: Authorize the President and Secretary to execute a
Quitclaim Deed to Yorba Linda Housing Partners, L.P., abandoning the
15-foot wide District easement recorded in Book 6360, Pages 856-859 of
Official Records of Orange County, California.
ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal
Board action.
9. Formation of a Citizen's Advisory Committee
Recommendation: Approve the formation of a citizen's advisory
committee and authorize the General Manager to begin the selection
process.
10. Formation of a Revenues and Rates Ad Hoc Committee
Recommendation: Form a Revenues and Rates Ad Hoc Committee to be
active and engaged during the budget and rate setting process.
I
it
2
DISCUSSION ITEMS CONTINUED
11. Status of Hidden Hills Reservoir Project
Recommendation: This is for information only. No action is required.
REPORTS. INFORMATION ITEMS AND COMMENTS
12. a. President's Report
b. Directors' Reports
C. General Manager's Report
COMMITTEE REPORTS
13. a. Executive-Administrative-Organizational Committee
(Summerfield/Mills) Alternate: Collett
1) Minutes of meeting held February 17, 4:00 p.m.
2) Meeting scheduled for March 17, 4:00 p.m.
b. Finance-Accounting Committee
(Beverage/Summerfield) Alternate: Mills
1) Meeting scheduled for March 13, 9:00 a.m.
C. Personnel-Risk Management Committee
(Armstrong/Collett) Alternate: Summerfield
1) Meeting scheduled for March 9, 4:00 p.m.
d. Planning-Engineering-Operations Committee
(Mills/Armstrong) Alternate: Beverage
1) Meeting scheduled for March 5, 4:00 p.m.
e. Public Information-Technology Committee
(Collett/Beverage) Alternate: Armstrong
1) Meeting scheduled for March 3, 4:00 p.m.
f. MWDOC/OCWD Ad Hoc Committee
(Mills/Collett) Alternate: Summerfield
1) Meeting scheduled for March 24, 4:00 p.m.
3
g. City of Placentia Ad Hoc Committee
(Beve rag eNecch is rel I i )
1) Minutes of meeting held Feb 18, 1:30 p.m.
2) Next meeting to be scheduled.
INTERGOVERNMENTAL MEETINGS
14. a. MWDOC Board, February 18 (Staff)
b. OCWD Board, February 18 (Staff)
C. Yorba Linda City Council, Feb 17 (Armstrong)
d. Yorba Linda Planning Commission, February 25 (Summerfield)
BOARD OF DIRECTORS ACTIVITY CALENDAR
Authorization to attend meetings scheduled after February 26, 2009. Agenda is available in the District office prior to
meeting.
March
Public Information-Technology Committee, Mar 3, 4:00 .m. Collett/Beverage
Yorba Linda City Council, Mar 3, 6:30 .m. Mills
MWDOC/MWD Workshop, Mar 4, 7:30 a.m. Staff
OCWD Board, Mar 4, 5:00 .m. Staff
Plan nin -En ineerin -O erations Committee, Mar 5, 4:00 .m. Mills/Armstrong
Personnel-Risk Management Committee, Mar 9, 4:00 .m. Armstrong/Collett
Yorba Linda Planning Commission, Mar 11, 7:00 .m. Collett
District Board Meeting, Mar 12, 6:30 .m.
Finance-Accounting Committee, Mar 13, 9:00 a.m. Bevera a/Summerfield
Executive-Admin-Or anizational Committee, Mar 17, 4:00 .m. Summerfield/Mills
Yorba Linda City Council, Mar 17, 6:30 .m. Armstrong
MWDOC Board, Mar 18, 8:30 a.m. Staff
OCWD Board, Mar 18,5:00 .m. Staff
District Board Workshop Meeting, Mar 23, 8:00 a.m.
MWDOC/OCWD Ad Hoc Committee Meeting, Mar 24,4:00 .m. Mills/Collett
Yorba Linda Planning Commission, Mar 25, 7:00 .m. Summerfield
District Board Meeting, Mar 26, 8:30 a.m.
CONFERENCES AND SEMINARS
Authorize attendance of Directors and such staff members of the District as approved by the General Manager to
attend the following conferences and seminars.
15. None.
4
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.
16. Conference with Legal Counsel - Anticipated Litigation
Significant Exposure to Litigation Pursuant to Subdivision (b)(1)(b) of Section
54956.9 of the California Government Code
Number of Potential Cases: Unknown
The exposure to litigation arises from assertions of District responsibility for
property and related losses incurred during the "Freeway Complex" firestorm of
November 15 and 16, 2008.
ADJOURNMENT
A regular meeting of the Board of Directors is scheduled for March 12, 2009, at 6:30
p.m., at 1717 E. Miraloma Avenue, Placentia 92870.
Items Distributed to the Board Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available
for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA
92870, during regular business hours. When practical, these public records will also be made available on the
District's intemet website accessible at hftp://www.ylwd.com/.
Accommodations for the Disabled
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability
and the type of accommodation requested. A telephone number or other contact information should be included so
the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation
should make the request with adequate time before the meeting for the District to provide the requested
accommodation.
5
2009 BOARD OF DIRECTORS CALENDAR
JAN FEB MAR
S M T W T F S S M T W T F S S M T W T F S
1 2 3 1 2 3 4 5 6 7 1 2 3 4 5 6 7
4 5 6 7M 9 10 8 9 10 11. 13 14 8 9 10 11013 14
11 12 13 14 15 16 17 15 16 17 18 19 20 21 15 16 17 18 19 20 21
18 19 20 21M 23 24 22 23 24 25 a 27 28 22M 24 25M 27 28
25 26 27 28 29 30 31 29 30 31
APR MAY JUN
S M T W T F S S M T W T F S S M T W T F
1 2 3 4 1 2 1 2 3 4 5 6
5 6 7 8- 10 11 3 4 5 6 7 8 9 7 8 9 10- 12 13
12 13 14 15 16 17 18 10 11 12 13M 15 16 14 15 16 17 18 19 20
19 20 21 22M 24 25 17 18 19 20 21 22 23 21 22 23 24 26 27
26 27 28 29 30 24 25 26 27 29 30, 28 29 30
31
JUL AUG SEP
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 1 1 2 3 4 5
5 6 7 80 10 11 2 3 4 5 6 7 8 6 7 8 9- 11 12
12 13 14 15 16 17 18 10 11 12 13M 15 15 13 14 15 16 17 18 19
19 20 21 22M 24 25 16 17 18 19 20 21 22 20 21 22 23M 25 26
26 27 28 29 30 31 23 24 25 26 28 29 27 28 29 30
30 31
OCT NOV DEC
S M T W T F S S M T W T F S S M T W T F
1 2 3 1 2 3 4 5 6 7 1 2 3 4 5
4 5 6 7- 9 10 8 9 10 11- 13 14 6 7 8 9§ 11 12
11 12 13 14 15 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19
18 19 20 21 - 23 24 22 23 24 25M 27 28 20 21 22 23M 25 26
25 26 27 28 29 30 31 29 30 27 28 29 30 31
- Board Meeting Feb 24-26, 2009 - ACWA 2009 Washington, D.C. Conference
Activities May 19-22, 2009 - ACWA Spring Conference, Sacramento
Holiday Dec 1-4, 2009 - ACWA Fall Conference, San Diego Rev. 12/30/08
Dec 9-11, 2009 - CRWUA 2008 Annual Conference, Las Vegas
ITEM NO.
Yorba Linda Water District
Account #18611500
Performance Summary Report
For Periods Ending 12/31 /08
Reporting Period:
Month- Quarter- Annualized
to-Date to-Date YTD Return Since
Inception*
Yorba Linda Water District
olio 0.29% 1.10% 3.31% 4.38%
Investment Portfolio
Lipper Institutional Money 0.14% 0.55% 2.86/0 ° 4.34/o
°
Market Fund Index
5.00%
4.50%
I
4.00% - - ■ YLWD
3.50% ■ Lipper Inst. MM Fund Index
3.00%
2.50% -
2.00%
I
1.50%
1.00% -
0.50%
L
0.00%
Month-to-Date Quarter-to-Date YTD Annualized Since
Inception
* - Inception dale for purposes of performance calculation: 11 1 05
Returns are net of !yells Capital Alanagement fees.
111 ,.L~ \I': t:U III I
i
WELLS CAPITAL MANAGEMENT
Presentation to: Yorba Linda Water District
MONTHLY MARKET OUTLOOK
February 2009
THE INVESTMENT ENVIRONMENT: STILL ON "ICE"
credit squeeze that also has turned the usual rolling,
A slow "thaw" in the credit 'freeze" hasn't been regional slowdown into a more even, broad-based
enough to lift the pall over the economic and slump across the country.
financial-market outlook, even as conditions for an
economic recovery move slowly into place. Still at This deep, credit-induced recession is reminiscent of
issue: the ability of "cyclical stabilizers" to the reaction to the March 1980 credit controls, which
overcome the debilitating effects of de-leveraging quickly was followed by the steepest single-quarter
and a still-dysfunctional financial market in getting drop in economic activity since 1958. Current
the economy moving, again. Those stabilizers, and financial strains are deeper than the more superficial,
the economy's inherent resilience, typically overcome policy-induced turmoil 28 years ago, so the powerful,
periods of mild de-leveraging in supporting self- but short-lived recovery that quickly followed the
starting recoveries that are part of the business cycle. lifting of controls in July 1980 isn't likely in this
However, strong recoveries, normally following deep cycle. However, the current backdrop of ample
recessions, are less common during the kind of severe liquidity and historically low interest rates is far less
financial turmoil now roiling the markets. Even a harsh than that of double-digit inflation and interest
modest recovery could be delayed by a less rates over twenty-eight years ago. Moreover, similar
'friendly " growth environment associated with reactions then and now mean that the jury still is out
tighter credit a sizable decline in household wealth on how much of this economic slump has been shock-
and the threat of declining prices (dubbed induced, and quickly reversible, and how much is the
"deflation'). Policy can help, though its impact in start of extended deleveraging likely to weigh on
this cycle likely will be diluted by poorly crafted growth in the years ahead
fiscal stimulus and by complex issues undermining LOWER FOOD AND ENERGY PRICES SEND HOUSEHOLD
the more important bailout of the financial market. "PURCHASING POWER' SOARING
Just how the debate over cyclical vs. structural forces 20 Percent Change In (Inflation-Adjusted) Average Weekly Earnings
plays out has huge implications for investors. A
reaction by the economy in line with those during is
past credit "crunches" would foster "deflationary"
weakness favoring a portfolio of large, "liquid" AnnuaRUd%Chg From
stocks, cash, plus "safe haven " gold and Treasury ° 3 Mo. Ago
securities-among the few asset classes to 1I09e
successfully ride out last year's turmoil. Even a weak 5 %
economic recovery would favor more highly charged Yt-Aga Chg
stocks and non-Treasury bonds, offering 0
extraordinary value in any reasonably supportive
economic and financial environment. -s
The Economy: "Free Falll The economy continued -10
to unravel early this year, leaving it on track for the Dec-06 Jun-07 Dec-07 Jun-08 Dec-08
longest, if not the deepest, economic slump in the last Source: U.S Labor Dept
75 years. Cuts in spending, hiring and in inventories,
triggered by last fall's credit-"shock," have been The answer may come soon. Ongoing adjustment of
followed quickly by a deep slump in equipment payrolls and inventories to much reduced demand
spending. Tight credit, globally, also has contributed likely will keep the economy in a free fall into the
importantly to an unusually abrupt decline of exports, second quarter of this year. However, the recovery's
a key support for the economy during much of last building blocks already are moving into place. The
year. Moreover, normally resilient services industries chart, above, shows the power of energy-led price
have been harder hit in this cycle by a declines, propelling double-digit gains in "real, "
average weekly earnings (one measure of purchasing
power') since last fall.
improvement, as well. Corporate bond issuance is up,
Lower mortgage rates have touched off a mini- and money is returning to prime money funds with
"boom" in refinancing activity, freeing up still more exposure in both short-term non-Treasury and
income to boost savings and consumer spending. Treasury markets. Even high-yield bond funds are
"Pent-up" demand, associated with the sharp reporting increased purchases, providing much-
spending pullback since last summer, is setting the needed relief to cash-poor, lower-rated firms.
stage for a consumer-led recovery, too, as household
cash flow continues to improve. And the latest fiscal WEIGHING THE ADMINISTRATION'S "TWO-
stimulus package, though flawed, likely will provide TRACK" STIMULUS PROGRAM
a modest "tail wind" for recovery later this year, too. Give the new administration a high "B" for the
developing financial bailout program, and a low "C,"
Forecasting the economy's future direction has been or less, for its fiscal stimulus plan. The deep, credit-
made difficult by structural cross currents interfering induced recession has been responsible for the costly
with the usual internal workings of the business and highly complicated two-track effort to jump-start
cycle. Many of the fundamental changes obscuring the economy. The higher of the two scores is where it
the outlook are linked to over two decades of belongs, because the financial bail-out's attempt to
"disinflation, " fostering speculative excesses in the "unfreeze" the financial market is a prerequisite for
financial market now weighing so heavily on the economic recovery. Conceptually, the plan scores well,
economy, and, at the same time, cushioning their because it touches on the key issues barring a speedier
impact by suppressing interest rates. The threat to credit thaw: stanching foreclosures, providing greater
"globalization" is adding to uncertainties, as a clarity of potendal bank losses by walling off impaired
protectionist response to international integration's assets and by re-establishing price "visibility" and
perceived disruptions threaten its future role as a "liquidity" through direct purchases of assets by the
growth engine. Federal Reserve. The devil is in the details, however,
and the lack of specifics on these and other parts of the
program (such as the impact of stress tests on bank
The economy will face several hurdles to the usual solvency and government assistance) has added to
strong recovery from this deep recession. An over- market uncertainty, for now.
supplied housing market likely will keep that key
recovery engine on the sidelines until well into next By contrast, the fiscal stimulus program has come up
year. The collapse of world trade also could prevent short under all three pillars of an effective program. It
U.S. exports from making much of a contribution is neither "timely," "targeted", nor, in all likelihood,
anytime soon, and late-cycle commercial real estate "temporary." Just a fraction of the tax cuts and
likely will weigh increasingly on economic activity increased spending will be brought to bear this year,
as vacancy rates rise and credit remains "tight." when it is needed most. Vital relief, such as expanded
unemployment insurance benefits and food-stamp
The economy also will be grappling with other, less assistance, has been included in the bill. However,
common hurdles to a bona fide recovery. A credit permanent income-tax cuts, lower payroll taxes and
"thaw" may accommodate economic growth later this other fast-acting stimulus have taken a back seat to
year, but a lingering "squeeze" in the financial temporary rebate-like reductions and spending
market likely will continue to dampen growth into programs with a questionable "multiplier," or ripple
next year. Second, consumer-led growth could be effect on the economy. Lastly, history shows that
seriously diluted, if not sidetracked, by an aggressive seemingly temporary spending programs, like those
increase in saving rates to counter household wealth's included in the latest spending plan, often become
steep decline in recent years. And third, deflation permanent--a risky proposition ahead of a looming
could undercut or delay growth by delaying threat to the budget from accelerated Social Security,
Medicare and other "entitlements " spending.
spending, or by triggering wage cuts by businesses
suffering a decline in revenues. However, market conditions still are far from normal.
The Financial Market. Thawing Outl The financial "Flight" capital is keeping Treasury yields
market still is recovering from a one-two punch to extraordinarily low. Treasury-bill rates just a fraction
confidence and credit availability delivered by last of a percentage point (and a small one, at that), and
September's turmoil. Interest-rate premiums to the yield on long-term bonds is unusually "lean"
Treasury yields and to the Fed funds rate slowly are against most long-term inflation expectations.
receding from their mid-September "spike." The Interest-rate premiums to Treasury benchmarks
Fed's direct purchases of agency-guaranteed, remain unusually high for commercial paper,
mortgage-backed securities and of commercial paper Eurodollars, corporate debt and other non-Treasury
have spurred the move, but investors fed up with issues. Moreover, bank credit and lending terms,
puny Treasury yields have contributed to the though less stringent than in late 2008, still are
unusually "tight."
SANRCREDITSTANDARDSSTIU TIGHT, DESPITE A RECENT "EASING" dollar and send U.S. Interest rates climbing in the
e0 Ne%OJLa<BeC.m WBnnluWlRinRToMake Cenamerloane 1970s.
U.S. GOVERNMENT BORROWING W. INAATION
60 V nAV Pmrenl Cbanp
40 1891
xo O9Q1 15% FMenl
BemwNB
0
-x9 lxvc
40 leg)
9h
-60
-80 6%e
-100 CPI
M"6 Defi-94 M"I Dee-90 Me-98 11eu-06 3% li
Source.£edemlRett.ve Board
The sea-change in monetary policy extends beyond 0%
xM<-69 Me 77 N"s oe<.93 M.01 xM"9
the Fed's shift from interest-rate targeting to Sauce R<m,R rerv Ba40
"quantitative easing" (i.e., printing money), to far More Than The Usual Twists And Turns To The
greater involvement by the Treasury through loan Interest-Rate Outlook? Interest rates usually move
guarantees and capital injections to a normally broadly in the same direction over the interest-rate
independent central bank. The latest example: the cycle, with varying responses to economic and
Treasury's plan to increase and broaden lending market conditions affecting interest-rate differences,
under the Fed's newly created Term Asset-Backed or "spreads," between market sectors and along the
Securities Loan Facility (or TALF) by boosting its so-called "yield curve (i.e., the path traced by interest
capital contribution from an original $20 billion to rates of various maturities). However, an unwinding
$100 billion. of 'flight" capital, propelled by financial turmoil of
the past eighteen months, could complicate the
However, the Federal Reserve recently has shown outlook in this cycle.
reluctance to continue lending aggressively, worried THE GAP BETWEEN LONG-AND SHORT-TERM INTEREST
that purchases of long-term Treasury and other, less RATES STILL SHORT OF ITS PREVIOUS PEAK
liquid (or tradable) securities will make it difficult to Yield Diference, 3-Mo T-Bitt Vs. 30-Yr. T-Hand; Basis Points
absorb the pile of cash that it created as private-sector 500
lending recovers. Further erosion of the Fed's 2113109 Wk
balance sheet could add to worries about the inflation 400
threat from its "monetization" of the Federal debt
through purchases of government securities issued to 300
finance massive budget deficits. For now, at least,
worries about inflation are overdone. Ample excess 200
capacity and the debilitating effect of a still-
competitive global environment on business "pricing o0
power" likely will prevent a material buildup ofprice o
pressures anytime soon. Deflation is the greater near-
term risk, judging from the first three-month decline -loo
in the CPI's "core" rate in nearly fifty years during 12/27/02 3/26/04 6/24/05 9/22/06 12/21/07 3/20/09
the fourth quarter of last year. In fact, increased Source: Federal Reserve Board
deficit-related financing historically has been Interest-rate declines, led by short-term Treasury
associated with falling inflation, because occurs bills, have produced a typical "steepening" of the
during periods of economic weakness and excess
capacity. (See the chart above right.) Treasury yield curve during this recession. Flight
capital and signs of deflation have added to the usual
Still, the Federal Reserve has to be mindful of downward pressure on rates, though the chart, above,
inflation concerns, likely signaled by increased shows a gap between short and long-term rates still
inflation-sensitive, long-term rates, rising commodity narrower than its peak in the last interest-rate cycle.
prices or by a weakening dollar. Even if inflation isn't Looking ahead, an unwinding of flight capital,
an issue among investors, increased deficit financing associated with the credit thaw, could affect interest
can lift long-term interest rates and undermine rates in two ways. First, Treasury yields likely will
financial stability by adding to the supply of Treasury rise from unusually low levels sooner than they did
securities and through the same loss of confidence in during the two previous weak economic recoveries.
U.S. economic policy that helped de-stabilize the Second, yields on non-Treasury securities could buck
increases in government rates, as "risk premiums" and a less sanguine inflation outlook. Rates will be
continue to diminish. Ultimately, however, vulnerable to still more pressure as early as late 2009
government and non-government interest rates or early 2010. At that point, the Federal Reserve
should move broadly higher, as flight capital's likely will begin to drain money from the financial
diminished importance allows the Treasury sector to market, through modest increases in the Federal
re-assert its role as a benchmark for yields elsewhere funds rate and through securities sales from its
in the financial market. At that point, non-Treasury portfolio, to counter increased private lending
yields likely will be pulled higher with rates in the associated with the credit thaw.
government sector, as investors focus on an
improving economy, increased Federal borrowing
THE STOCK MARKET: SEARCHING FOR A SIGN
the S&P 500's cyclically sensitive sectors in a highly
Marking Time. Stocks moved into a holding pattern volatile, "down" market.
during the early part of February after stumbling
badly in January, often viewed as a bellwether for the The Russell 2000 small-cap benchmark has under-
year. The benchmark, S&P 500, down just over 8.1 performed the mid- and large cap segments of the
is off to its worst start since before the 1930s market, hurt both by the deep recession and by fairly
Depression, propelled by uncertainties over the depth "rich" valuations. (See the Equity Scorecard below.)
and duration of this economic and earnings slump, Russell 1000 Growth stocks have been running well
along with worries over the health of the financial ahead of their Value counterpart, in contrast to the
market and the government's ability to improve it. fairly even sell-off in last year's fourth quarter and
This year's weakness has been made all the more gut- for 2008 as a whole. Growth's resilience compared to
wrenching by the market's ongoing volatility, which Value has been broad-based thus far this year, out-
is double its long-term average. performing in all but one of the twelve constituent
STOCKS RE" T3VEL Y CALM DESP3TE F2NANcuL-MARKET TURBULENCE sectors making up the two benchmarks.
S&P SOB POlmlllty, As Measured By The "VrK" /ndest EQUITYSCORECARD
85
Total Returns, In Percent
75 Yr-TaDate
Pee. 1.13,'09 den'09 July 2009
65
S&P 500 OJ -8.4 -8.1 -37.0
55
Russell 100 0.6 -8.2 -7.6 -37.6
45 Runell 1000 Growth 2.7 4.8 -2.3 -38A
L-A~,., Rassell 1000 Value -1.7 -115 -130 -369
35 2//3109
Wk. Russell Mod{ap 1A -74 -61 415
25 Russell Mid-CaOGrowth 3.3 45 -14 443
- - - Russell Mid-Cap Value -0.5 .103 -10.8 -384
IS
Rmsr112000 1.2 -11.1 -10.1 -33.8
5 Ros.112000Growth 3.2 -0.6 4.6 -38.5
1227/06 5NN7 9/19/07 1004)8 6/11/08 10/22/08 3/4/09 Russell 2000 Value .O9 -143 -15.0 -289
• As measured by the implied volatility ofS&P 500 options contracts.
Sooree.rhe Chkago Board Options Exchange, via Bloom berg Fin 7 New, lac MSCI EA£E($ Terav) .OJ .99 -104 434
(Lac Can. Term) -0.6 -6.3 -6.9 403
Weakness within the S&P 500 was broad based in Emergi,EAFE(STerma) 4.7 .65 -21 -53.2
January and, to a lesser extent, through mid-
February. Eight of the benchmark's ten sectors are in Source4: S&P; Frank R.//Ca.: MSCI
the red thus far this year, with the declines extending Overseas developed and emerging markets out-
across 102 of the 134 constituent industry groups. performed the S&P 500 through mid-February,
Technology has led the way, on the strength of a though the U.S. currency's rise in the foreign
powerful gain in IT consulting and services, followed exchange markets left the dollar-based EAFE return
by a more modest rise by health-care stocks. below the S&P 500 benchmark during the period.
Financial services have been on the leading edge of Among developed country markets, moderate losses
the market's slump since the start of the year, by in Canada, Australia and in much of Europe have
contrast, hurt by steep, first-quarter earnings declines countered fairly steep declines in the important
Japanese market. Emerging-market stocks have out-
and by worries over the outlook for financial performed the S&P 500 thus far this year, as well,
buoyed by gains in several Asian and Latin American
stability. Not surprisingly, "defensive" health care markets.
and consumer staples have continued to out-perform
A Difficult Wait For The "Bell" To Go Off. Stocks
are being held back by uncertainties over the RUSSELL 2000"RICH"VS THE S&P 500
economic and corporate earnings outlook through the Rusue112000 Value PIE AsA Percent
end of the year. The economy's free-fall amid a 120 Of The S&P 500 PIE
severe credit squeeze and pressure to deleverage is 115 1109
complicating efforts to pinpoint the depth of this ]to
recession and the timing and strength of the next lug
recovery. Even S&P 500 stock valuations are
something of a question mark, seemingly cheap based loo
on consensus earnings forecasts but broadly in line 96
with their historic average assuming a deeper-than- 90
expected slump in profits. ss \
THES&P 5005 VALUATIONA BIT "PRICE)" 80 Avg., 1986-2007=92
BYRECENTSTANDARDS 75
Price-Eamhtgs (PIE) Mukipla% Based On Fwd. Opensang Earnings
26.0 70
65
Dec•98 Dee-01 Dec-04 Dec-07
23.0
Source.: Factset Research, Inc.: Wells Capital Management
2113/09 PIE-15.0r
20.0 "Want Case"Fmr and 4) Ironically, "Blue Chip" stocks have been hurt
Earnings (855/Sham) more by their "liquidity" than by any inherent
17.0 weakness, much like the higher-quality sectors of the
bond market. Hedge funds and other investors have
14.0 \ ~ ~ n
been forced to un
load these more easily tradable
.
securities first to meet redemptions and other "cash"
Avg. 1983- 2/13/09 P/needs, leavin manrelative] "cheaP" cornPared to
11.0 2006=15.0 Tint es g Y Y
IBES Consens/
Fud. Opng. Eamings Enrnings ($73.45/Share)/ the market's lower-quality sectors.
80
Dec-94 Dec-97 Dec-00 Dec-OS Dec-06 Dec- 5) Historically "safe," high-dividend stocks likely
will remain under a cloud, despite attractive yields.
saamu: smndnrd&Paars.lne The group will be hurt by problems in the financial
What we do know is this: services sector and by the threat of dividend cuts
1) On average, the stock market has rallied four to elsewhere, in a difficult earnings environment. That
five months before the start of the last five sustained could provide investors with an added incentive to
economic recoveries dating back to 1970. If, as opt for attractive yields on high-quality corporate
expected, the economy bottoms out by the summer, bonds.
then stocks should be positioning for a rally soon.
6) As usual, the global economy appears to be behind
2) Leadership usually rotates ahead of economic the U.S. in its economic cycle, increasing the chances
rebounds from "defensive" health care and consumer of under-performance by international stocks during
staples to more highly charged tech and cyclically the early stages of the next market rally. Dollar-based
sensitive sectors of the market, even during weak returns also could suffer if, as expected, the U.S.
recoveries like those in 1991-92 and in 2002. For that currency strengthens in the foreign-exchange market.
reason, the market's defensive sectors likely will
relinquish leadership to those sectors if the economy Ultimately, however, performance of the broad asset
and the stock market are approaching a bottom. classes will depend on the economy's trajectory
during the balance of 2009. "Safe haven" gold,
3) "Value" and small-cap stocks are at a disadvantage "cash" and Treasury securities likely will remain the
ahead of any immediate rally, because of relatively assets of choice, if the economy's fundamental
"rich" valuations compared to the benchmark S&P weaknesses delay the recovery until 2010, adding to
500 Index. As indicated in the chart above right, the the pressure on corporate profits and credit quality.
Russell 2000's forward PIE multiple vs. that of the By contrast, a more timely economic recovery will
S&P 500 at the end of January was more than 20% trigger changes more in line with past economic
above its long-term average. The Russell 1000 Value cycles, as investors move out along the "risk curve"
PIE was nearly 14% above its long-term average and into more highly charged stocks and bonds.
compared to that of the Russell 1000 Growth
benchmark.
THE BOND MARKET.• A "VALUE"-DRIVEN MARKET
tax-exempt securities have benefited from attractive
When "Bad" Is "Good." Taxable, investment-grade valuations drawing investors away from relatively
bonds are down on the year, despite a modest rally rich Treasury issues. The non-investment grade
during the first half of February. However, the bond segment extended its powerful January rally into the
market's decline has masked important changes in early part of February, led by the higher-quality (BB-
sector performance that could bode well for investors rated) sector. Last month's rise bucked the steep
as the credit thaw continues over the course of the decline in the stock market, to which that sector
year. Much of the recent sell-off has centered on usually is closely tied. Returns have been equally
Treasury securities, hurt by a rotation among impressive in the municipal bond market, on the
investors into other sectors of the bond market as strength of both attractive valuations and a recent
credit conditions slowly have eased. One money slowing of new supply. Overseas, foreign Treasury
manager survey shows portfolio allocations to the markets out-performed their U.S. counterpart in
Treasury sector dropping to a seven-year low, a January and during the early part of February,
reaction by investors to lean yields and "rich" cushioned by relatively moderate declines in the
valuations. Long-term government securities have Japanese sector and in several European markets.
been hit particularly hard, with the thirty-year bond
losing nearly 16% since the start of the year.
BOND MARKET SCORECARD Riding The Risk Curve. Risk premiums to
Total Rearm, In Perrem throughout the bond market are attractive compared
r.ra-arm
Feb 1-13,199 Jo, b9 21131M 2008 to the "rich" Treasury sector, despite their decline
from last fall's peak. For example, the yield premium
Leh'm Aggregate 03 -0.9 -0.6 5.2 to comparable Treasury securities in the high-yield
market, at just over 16 percentage points, is more
Treasurys 0.0 -2.9 •2.9 13.7 than three times its long-term average. With Moody's
Agencys 0.3 .1.4 -1.1 9.1
MortgagaBkds. 0.6 0.1 0.8 83 forecasting a tripling of the corporate default rate by
the summer, however, high-yield securities could face
U.S. Credit 0.4 0.0 0.4 -3.1 considerable volatility in coming months.
Asset-Bkds. -1.6 6.5 4.8 -12.7
Municipals 13 3.7 5.0 -2.5 A more suitable risk-reward trade-off may be
High-Yield 0.8 6.0 6.8 -26.2 available among higher quality issues, where still-
sizable risk premiums offer attractive opportunities
U.S. "TIPS" 0.7 1.7 2.4 -2.4 for price appreciation as interest spreads continue to
Non-U.S. GoYts• 0.8 -12 -0.4 8.0 converge with long-term averages. High-grade munis
Emerging Mkts -0.6 1.4 0.7 -15.4
were yielding more than 130% of thirty-year
•Denaminotmindollars,futlyhedged. Treasury bonds by mid-February, for example, well
sources: Lehman Bros., Ciagmup, Inc: Merrill Lynch, Inc above there long-term average of 90% and with a
historic default rate below that of AAA-rated
Much of the rotation out of the Treasury sector has corporate bonds. (See the chart on the next page.)The
been into relatively attractive, investment-grade yield on investment-grade corporate securities was
corporate issues. An impressive gain by utility bonds more than 3.6 percentage points more than
has out-weighed sizable declines by the market's comparable Treasury securities at mid-month, more
financial services sector. Agency mortgage-backed than three times their long-term average. Excluding
securities also have benefited from portfolio re- debt of financial services companies, the spread,
allocations, along with the Federal Reserve's direct though less than 2 percentage points, still was nearly
purchases since early this year. Ironically, asset- three times its historic average, as well. And the
backed securities faltered during the early part of yield on agency-guaranteed, mortgage-backed
February, despite the scheduled start this month of securities still was nearly double there average by
the Fed's new "TALF" program to inject liquidity mid-February, despite the Fed-induced decline.
into that segment through purchases of the assets Treasury inflation-protected securities (or "TIPS")
from investors. However, January's strong gains still offer good value, as well, in contrast to the asset
have left the sector with a solid, year-to-date return. "bubble" in the "conventional" sector of the market.
By contrast, declines in January and through the early
part of February have left commercial mortgage-
backed securities down sharply this year.
Performance has been even more impressive outside
the Aggregate universe. Non-investment grade and
LONG-TERM MUNI YIELDS STILL -[NEAP"VS TREASURIES Yield-curve strategy is something of a question mark,
220% Yield Ratio, Bond Buyer 20 GO Index VS 30-Year Trearary Bend(%) too. A "flattening" yield curve recently tilted the
return advantage toward a "barbell" strategy of
splitting investments between short- and long-term
190% securities. Still, it's difficult to say how the yield
curve will change in coming months, as flight-related
160% distortions unwind. The yield curve typically
"flattens" as interest rates rise, favoring "barbells,"
30% because of credit "tightening" by the Federal
9191-12107 Reserve. However, the Treasury yield curve could be
Avg.=90.+sc :1131e9
vulnerable to a so-called "bear market steepening" in
we
loo% r this interest-rate cycle, if a less sanguine inflation
- - outlook, increased supply or a loss of confidence in
70% U.S. economic policies triggers relatively rapid
12n6M2 6n4/04 12122/05 6/21/07 12/18/08 increases in long-term rates.
Source: The Bond Buyer; BloombeT Financial Neva, Inc.
Sector strategy likely will occupy center-stage, until
distortions created by last fall's turmoil in the Gary Schlossberg February 16, 2009
financial market unwind. A recent money-manager
surveys show portfolios tilting toward longer-dated
securities since mid-January. With Treasury yields
facing upward pressure from a reversal of flight Wells Capital Management (WellsCap) is a registered investment
adviser and a wholly owned subsidiary of Wells Fargo Bank,
capital, looming supply from an enlarged deficit and N.A. WellsCap provides investment management services for a
prospects for an economic recovery by the second variety of institutions. The views expressed are those of the
half of this year, however, investors counting on author at the time of writing and are subject to change. This
"duration " strategy to enhance returns may be material has been distributed for educational purposes only, and
taking false comfort in recent, weak economic data. should nor be considered as investment advice or a
recommendation for any particular security, strategy or
investment product. The material is based upon information we
consider reliable, but its accuracy and completeness cannot be
guaranteed. Past performance is not a guarantee of future
returns. As with any investment vehicle, there is a potential for
profit as welt m the possibility of loss. For additional
information on Wells Capital Management and its advisory
services, please view our web site at wniv. wellscaD. mm, or refer
to our Form ADy Part 11, which is available upon request by
calling 415.396.8000.
1
APPROVED BY THE BOARD OF DIRECTORS
OFTHEYORBAUNDA WATER DISTRICT ITEM NO.
FEB 2 6 2009 MINUTES OF THE
YORBA LINDA WATER DISTRICT
BY BOARD OF DIRECTORS REGULAR MEETING
QrYI//Z C 6-0 February 12, 2009
The February 12, 2009 regular meeting of the Yorba Linda Water District Board of
Directors was called to order by President Summerfield at 6:30 p.m. The meeting was
held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia,
California.
DIRECTORS PRESENT STAFF PRESENT
John W. Summerfield, President Ken Vecchiarelli, General Manager
William R. Mills, Vice President Pat Grady, Assistant General Manager
Paul R. Armstrong Art Kidman, General Counsel
Michael J. Beverage Steve Conklin, Engineering Manager
Ric Collett Diane Cyganik, Finance Director
Gina Knight, HR Manager
Annie Alexander, Executive Secretary
ADDITIONS/DELETIONS TO THE AGENDA
None.
PUBLIC COMMENTS
President Summerfield opened the meeting to public comments.
Mark Schock spoke regarding questions related to the Freeway Complex Fire Disaster
Response & Water System Assessment that were posted on the District's website.
SPECIAL RECOGNITION
Mr. Vecchiarelli introduced Pat Grady, newly promoted to Assistant General Manager.
CONSENT CALENDAR
Director Collett requested to remove Item 6 from the Consent Calendar. On a motion
by Director Mills, seconded by Director Collett, the Board voted 5-0 to approve the
balance of the Consent Calendar. Director Beverage abstained from voting on Check
No. 50908 of Item 2 as he had received income from the vendor during the past year.
1. Minutes of the Regular Board of Directors Meeting Held January 22, 2009
Recommendation: Approve the minutes as presented.
2. Payment of Bills, Refunds, and Wire Transfers
Recommendation: Ratify and authorize disbursements in the amount of
$3,021,106.84.
I
~I
3. Progress Payment No. 9 for the Highland Reservoir Replacement Project
Recommendation: Approve Progress Payment No. 9 in the net amount of
$263,843.42 to Schuler Engineering Corporation and 10% retention of
$29,315.94 deposited to Citizens Business Bank escrow account for
construction of the Highland Reservoir Replacement Project, Job No.
200309.
4. Progress Payment No. 21 for the Lakeview Reservoir Project
Recommendation: Approve Progress Payment No. 21 in the net amount
of $139,410.41 to SSC Construction, Inc. and 5%_.retention of $7,337.39
deposited to City National Bank escrow accoutC for construction of the
Lakeview Reservoir Project, Job No. 200704 z
5. Amendment No. 4 to Professional Services Agreement WithCarollo Engineers for
Design of Hidden Hills Reservoir
Recommendation: That the Board approve Amendment No. 4 to the
Professional Services Agreemeiifwith Carollo Engineers for the Hidden
Hills Reservoir Project for addit! al design-services for a-total fee not to
exceed $20,615.
ITEMS REMOVED FROM THE CONSENT CALENDAR
6. Damage Claim filed by MichaeLBum6;'A9926 Trotter l-Ane, Yorba Linda.
Director Collett reported that the Personnel Risk Management Committee had
reviewed the claim at;their meetitag heft F61 r 9,"2009 and directed staff to
locate the District`* policyfor handling claims.
Mr. Vecchiarelli reported:. that staff had located ACWA/JPIA's small claims
settlement policy which indicates thatthe District has the option of settling or
denying a claim if it meets certain criteria
Uri a motion by Direcfor.Collett, seconded by Director Beverage, the Board voted
5=0 to return the.d1aim tovstaff for further processing.
ACTION CALENDAR
7. 2009 Board of Directors Strategic Planning Workshop
Mr. Vecchiarelli explained that staff was trying to set a date of February 19, 2009
for the workshop and recommended hiring John Acampura from MAP
Consulting, Inc". as a facilitator. Mr. Vecchiarelli then responded to questions
from the Board.
Following discussion, the Board directed staff to schedule the workshop on
February 18, 2009 pending Mr. Acampura's availability. Staff will work with the
Board to schedule the workshop on another date if needed.
2
8. Change Orders No. 4 & 5 for the Construction of Lakeview Reservoir Project
Mr. Conklin explained the need for the Change Orders and stated that the project
was approximately 95% complete.
On a motion by Director Mills, seconded by Director Beverage, the Board voted
5-0 to Approve Change Order No. 4 in the amount of $167,113.53 and 49
calendar days, and Change Order No. 5 in the amount of $142,016.71 and 19
calendar days for construction of the Lakeview Reservoir Project, Job No.
200704.
9. Award of Construction Contract for Zone Reconfiguratidh~Aroject
Mr. Conklin stated that Ken Thompson, Inc. was the':lavvest bidder for the project
and was a reputable firm.
On a motion by Director Mills, seconded by Director Armstrong, the Board voted
5-0 to award the Contract for Construction_of'Zone Reconfiguration for Areas 1, 2
and 3 Water System Improvements to Ken Thompson, Inc., forVX99,000.
10. Award of Contract for Highland Booster;ztation En".hearing Feasibility Study
Mr. Conklin introduced the item and explained the%need for the feasibility study.
On a motion by Director Mills, seconded by Dlreptor Armstrong, the Board voted
5-0 to authorize execution of a Professional Servioes,Agreement with Tetra Tech,
in the amount not to exceed $4& 75, to proyide an Engineering Feasibility Study
for the Highland Booster Station Replacementlrpansion Project.
DISCUSSION ITEMS.
W,.
11. Freeway Complex Fire Disaster Response & Water System Assessment
Mr. Vecchiarelli i.ipgrtiirthattk►ete.had"-not been a lot of new activity regarding
the.-assessment other than g, I some correspondence from the public. Mr.
Vecchiarelfi- then responded to questions from the Board regarding a video
recorded at the MWD's Santiago Tower during the Freeway Complex Fire.
12. Status of Hidden Hills Reservoir Project
Mr.`Con. klin reported that the District had sold 70 sets of plans for the project and
a bid opening was,"scheduled for February 24t .
13. Status of Capital Improvement Projects
Mr. Conklin provided a brief PowerPoint presentation regarding the status of
current Capital Improvement Projects. Mr. Conklin reported that projects worth
$37 million had been completed during the previous 18 months. Staff also
expects to have additional projects worth $23 million completed within the next
18 months.
3
REPORTS, INFORMATION ITEMS AND COMMENTS
14. a. President's Report
President Summerfield reported that the next Finance-Accounting
Committee meeting had been rescheduled to March 13, 2009 at 9:00 a.m.
b. Directors' Reports
Director Mills reported that he had attended a recent Board meeting of the
Irvine Ranch Water District where they conductedaa forum for candidates
applying for appointment to the vacancy on bjiir Board of Directors.
Approximately 41 applications for the positiow= . were received.
Director Armstrong reported that he recd y aft ed a Council meeting
of the City of Yorba Linda in whiqt4they discussed, the possibility of
merging the District with the City I City's attorney-commended that
the Council investigate the issu"ifore proceeding andA-jdI be providing
them a written report regardirT4 tj a matter. Director ArmstRa g requested
that staff obtain a copy of the re0b"hen' ` comes available
C. General Manager's Reort, m
1) Form 700 Stateni Df&F omic A sts - Due April 1, 2009
Mr. Vecchiarelli arunced Chat-Ahe Boa~•would need to complete
Forrrj hich is due to ~ ~7ran : ounty Clerk of the Board of
Su}s#rti7Ti'aby April' f: 9. Ms. A`lezander will be providing the
a f6fm and related inforiWition to each Director shortly.
Mr. Ve biarellin zrted that a had attended the OCFA sponsored
Wildfire: teavu Sfay"iir won on February 11th. The presentation
7_ ed orf _j#,panng ahead 6flime for wildfire events. There was also a
ven of-ex ositiaz~ on site offering various home protection products.
-d-- General XO sel's~ftport
Mr. Kidman~bfao commented on OCFA's presentation.
COMMITTEE REPORTS`.=
15. a. Exeaati". dministrative-Organizational Committee
(Summerfield/Mills) Alternate: Collett
1) Meeting scheduled for February 17, 4:00 p.m.
4
b. Finance-Accounting Committee
(Beverage/Summerfield) Alternate: Mills
1) Minutes of meeting held February 10 were presented at the
meeting. Directors Beverage and Summerfield attended. Items
discussed during the meeting were as follows: Investment Report
ending December 31, 2008; Monthly Portfolio Report ending
January 31, 2009; Monthly Financial Statements ending November
30, 2008 and December 31, 2008; and FY 2009/2011 Budget
Activities Calendar.
2) Meeting scheduled for March 13, 9:00 arrx-m
C. Personnel-Risk Management Committees R...
(Armstrong/Collett) Alternate: Summerfie
1) Minutes of meeting held Fe~a'ry 9 were presd at the meeting.
Directors Armstrong and, affett attended. Items°VIscussed during
the meeting were as folk oW : status _o...recruitments,-pwsonnel and
risk management activities;4Od org# 'm tional changes:
2) Meeting scheduled for Mar6Ft7a;L4 p.m.
d. Plan ning-Enginear! iij~0peeations Coin-buttee
(Mills/Armstrong) Alternate: ffiA*, a_ye
~k
1) Min _Dfpmeeting--'h~eld::FebtU w6-re provided in the agenda
paeket:= ctors Wlls Wd Armstr''bng attended. Items discussed
,,:i#uring the meeting w .as follows: Change Orders No. 4 & 5 for
=m,- construction.-:23f the La'kWview Reservoir Project; review of Radio
11iter Rep ement Projet Phases 1 & 2; award of Construction
w_
Ciragf`6r ae~Racnn'figuration Project; contract for Highland
=m._Bod§W-_FStation Engirt ring Feasibility Study Award; Amendment
Flo. 4 6fT, rofessional Services Agreement with Carollo Engineers
fi3Mesig'rt,50f. Hidden Hills Reservoir; presentation of Final Report
for =Ligatiort easibility Study; Monthly Groundwater Production
and Purchased Water Report; Annual Preventative Maintenance
Program Report; Monthly MWDOC Managers and OC Groundwater
Prodd, rs Meeting Summary Reports; Status Report on Progress
:..O 8; Preview Report on Capital Improvement Projects from
u2E3f37 to 2012; and Status Report on Capital Improvement Projects
ib' progress.
2) Meeting scheduled for March 5, 4:00 p.m.
5
e. Public Information-Technology Committee
(Collett/Beverage) Alternate: Armstrong
1) Minutes of meeting held February 6 were presented at the meeting.
Directors Collett and Beverage attended. Items discussed during
the meeting were as follows: recommendation for Education
Program Collaboration with the Fullerton Arboretum; Electronic
Imaging System update; fire related customer comments; and 2009
Public Information Plan.
2) Meeting scheduled for March 3, 4:00 p.m. m ,
f. MWDOC/OCWD Ad Hoc Committee
(Mills/Collett) Alternate: Summerfie/d
1) Minutes of meeting held Janue&2i were presented at the meeting.
Directors Mills and Collett~9ttei~ded. Items dossed during the
meting were as follows: V"iii Supply Conditions"abd.Probability of
Allocations; MWD ratejections; QCLAFCO Muralslpal Service
Review & Sphere of Influence Stu•,-=oir MWDOC; fre6'ze on State
Grant; annexations; Freewa-)tCo~-- ex Fire Disaster Response &
Water Systern=Assessment; ~~2009 ACWA Washington, DC
Conference. _
2) Meeting scheduled.TfoP=Is~A r 1124,
4:06 m.
g. City of PI #altia_Ad Hoc om ee = a:..
(Beverage 2cch+ Celli) °
1) Meeting scheduled for February 18, 1:30 p.m.
INTERGOVERNMENTAL. MEETING' = ;;:w~.-
16. m = mu VMWt3 QMWT-Workshop, February 4 (Staff)
Staff did-- atter►d_..
b:=mm OCWD BoazdrvFebruary 4 (Staff)
m =®-Staff did notend.
C. YMba.,Lind City Council, Feb 3 (Mills)
Direfaiffls attended and made note of a 4 month road closure on
Imperi67`Highway. Director Mills also requested staff to work with the City
regarding funding for solar power at reservoir sites.
d. Yorba Linda Planning Commission, January 28 (Collett)
This meeting was cancelled.
e. Yorba Linda Planning Commission, February 11 (Collett)
Director Collett did not attend.
6
BOARD OF DIRECTORS ACTIVITY CALENDAR
Authorization to attend meetings scheduled after February 12, 2009. Agenda is available in the District office prior to
meeting.
February
Holiday, Feb 16 District Offices Closed
Executive-Admin-Or anizational Committee, Feb 17, 4:00 .m. Summerfield/Mills
Yorba Linda City Council, Feb 17, 6:30 .m. Armstrong
MWDOC Board, Feb 18,8:30 a.m. Staff
Placentia Ad Hoc Committee Meeting, Feb 18, 1:30 .m. Beverage
OCWD Board, Feb 18, 5:00 .m. Staff
Yorba Linda Planning Commission, Feb 25, 7:00 .m. Summerfiield
District Board Meeting, Feb 26, 8:30 a.m.
March
Public Information-Technology Committee, Mar 3, 4:00 :m. Collett/Beverage
Yorba Linda City Council, Mar 3, 6:30 .m. MillbEL
MWDOC/MWD Workshop, Mar 4, 7:30 a.m. Staff
OCWD Board, Mar 4, 5:00 .m. Staff
Planning-Engineering-Operations Committee, Mat;5,4:00 Mills/Armstrong
Personnel-Risk Management Committee, Mar 9, 4:00 ms Armstrong/Collett
Finance-Accounting Committee, Mac10.4:00 .m. Bevera a/Summerfield
Yorba Linda Planning Commission, Mai --'Ij 7.00 P.M. Collett
District Board Meeting, Mar 12, 6:30 :m.
Executive-Admin-Or anizational Committee, MaFI7, 4.00 m Summerfield/Mills
Yorba Linda City Council, Mar..17, 6:30 pjm-'::. Armstrong
MW DOC Board, Mar 18y 8r3Q a iit. = Staff
OCWD Board, Mar 18 5100 .m. Staff
MWDOC/OCWD Ad Hoc Committee:Meetin ; Mar 24, 4:00 .m. Mills/Collett
Yorba Linda Planning 'Commission Mar 25, 7:013-" m. Summerrield
District Board Meetin , Mar 26; 8:30 aJrr,Y
CONFERENCES-AND SEMINARS
On a motion by Director Collett,, seconded by Director Beverage, the Board voted 5-0 to
authbdie attendance o Directbirs and such staff members of the District as approved by
the General Manager to attend the.iollowing event:
17. Water:Education Foundation Lower Colorado River Tour- March 4-6, 2009
A recess was declared-at 7:40 p.m.
7
ADJOURN TO CLOSED SESSION
The Board entered into Closed Session at 7:45 p.m. All Directors were present. Also
present were Messrs. Vecchiarelli, Grady, and Kidman and Mses. Knight, Bauermeister
and Park.
18. Conference with Legal Counsel - Liability Claims
Pursuant to Section 54956.95 of the California Government Code
a. Claimants: Mohamed and Fatima Itani
Shannon Lew
Michael and Kathy Minnick
David D. Ramoncinski
Morteza and Sorour KtiallF=-
Robert and Kathryn Short
b. Claimant: Ameet Y. Sambro---
Agency Claimed Against: Yorba Llnda_UVater District.
19. Conference with Legal Counsel - Anticipated Litigation
Significant Exposure to Litigation. Pursuant to Subdivision (b)(1)(b) of Section
54956.9 of the California Goverriment Code
Number of Potential Cases: Unknown
The exposure to litigatiDn arises from asserxGa~as of District responsibility for
property and related losses, incurred during the "Freeway Complex" firestorm of
November 15.artd 16, 20011,
The Board reconvened, in Open Session at 8,543 p.m. President Summerfield reported
e~ .
that the Board voted 114to ;reject the blaims,submitted by the claimants listed in Item
No. 18. Tties llghs will be~referred to AC17VA/ JPIA for further processing.
ADJOURNMENT
The meeting adjourned".. 8:44 p.m:. The next meeting of the Board of Directors will be
held February 26, 2009, t 8:30 a.m.
8
i
ITEM NO.
AGENDA REPORT
Board Meeting Date: February 26, 2009 APPROVED BY THE BOARD OFOIRECTOR,
OF THE YORBA LINDA WATER DISTRICT
To: Board of Directors FEB 2 6 2009
From: Ken Vecchiarelli, General Manager BY /W
Staff Contact: Gina Knight, Human Resources Manager 6t"I& C_ S_p
Reviewed by General Counsel: No Budgeted: $24,525 Dept: Admin
Funding Source: All Water Funds
CEQA Compliance: N/A Account No: 122690 Job No: N/A
Estimated Costs: $33,112
Subject: Property Insurance Premiums for April 2009-2010
PURPOSE:
The purpose of this report is for the Board of Directors to authorize payment for the yearly
premium to renew property insurance through the Association of California Water Agencies-
Joint Powers Insurance Authority (J PIA), for the period of April 1, 2009 to April 1, 2010, at a cost
of $33,112.
DISCUSSION:
The District obtains its insurance through the Association of California Water Agencies-Joint
Powers Insurance Authority. The District also receives workers compensation and general
liability insurance coverage through this JPIA and receives a multiple program discount of 5%.
The District's adopted purchasing policy authorizes the Genera Manager to procure services
identified in the budget in amounts not to exceed $75,000 with three written quotes. Payment of
the yearly insurance premium to JPIA, while administrative in nature, falls outside the adopted
purchasing policy. Therefore, staff is requesting Board authorization to renew the policy and
pay the yearly insurance premium.
The District's current property insurance policy will expire on March 31, 2009. District property
covered under this insurance program includes buildings, personal property, fixed equipment,
mobile equipment, certain licensed vehicles and certain catastrophic events. The District's
buried reservoirs and the majority of its vehicles are not covered under the policy.
Attached for the Board's review is a summary of coverage:
1. The values for mobile equipment and licensed vehicles are computed on an actual cash
value basis. As these items depreciate, staff adjusts the values accordingly.
2. Mobile equipment includes backhoes, tractor/lawn mower and has a deductible of $1000
per occurrence.
3. Licensed vehicles covered include the sewer jet vactors, hydro excavator, dump trucks
and other larger vehicles with a $500 deductible per occurrence.
4. The majority of the District's vehicles such as the sedans, pickups and utility trucks are
self insured by the District.
5. Buildings, fixed equipment and personal property have a deductible of $1000 per
occurrence.
This year's invoice is based on values and items listed on the schedule. JPIA increased the
values for buildings and other structures by 3.13%; fixed equipment values were increased by
3.77%. These increases are based on average increases in construction & acquisition costs as
calculated by published indexes per JPIA.
PRIOR RELEVANT BOARD ACTION(S):
On March 27, 2008, the Board of Directors approved last year's billing invoice in the amount of
$30,505.
STAFF RECOMMENDATION:
That the Board of Directors authorize payment in the amount of $33,112 to renew the District's
property insurance coverage through ACWA-JPIA for the period of April 1, 2009 through April 1,
2010.
COMMITTEE RECOMMENDATION:
This item was not presented to the Personnel/Risk Management Committee for review as staff
is not proposing to change the substance of the existing policy and this is an annual
administrative occurrence.
ASSOUAI ON OF L Al_IFORNIA wAUR AGLNr Its -W T 0 e-"4
PIA JOINT POWERS
f' I V> l l f; A N r- ' A I1 1 11 0 11 1 I Y
Property Program Renewal Billing for Member #Y002
4/1/2009 - 4/1/2010 Yorba Linda Water District
P.O. Box 309
Invoice Date: 2/12/2009 Yorba Linda, CA 92885-0309
Basic Property Billable Total Rate Premium
A. Buildings Value $14,302,272 $14,302,272 0.00100 $14,302
B. Fixed Equipment Value $7,622,246 $7,622,246 0.00100 $7,622
C. Personal Property Value $2,201,522 $2,201,522 0.00100 $2,202
$24,126,040 X 0.00100 = $24,126
Credit for $1,000 Deductible Amount - $0
Mobile Equipment
A. Mobile Equipment Value $96,200 X 0.00150 = $144
Credit for $1,000 Deductible Amount - $0
Licensed Vehicle
A. Comprehensive and Collision Count Value Rate Premium
1. Passenger Car 0 X $107 = $0
2. Light Truck 0 X $125 = $0
3. SUV/Jeep 0 X $149 = $0
4. Van 0 X $123 = $0
5. All Other 12 $1,245,243 X 0.00850 = $10,585
Total Vehicle Premium = $10,585
Credit for $500 Deductible Amount - $0
B. Catastrophic Coverage Billable Total Rate Premium
1. Basic $0 $100,000 X 0.00000 = $0
2. Extra $0 $0 X 0.00130 = $0
Credit for $1,000 Deductible Amount - $0
Sub Total $34,855
JPIA Multiple Program Discount (5%) - ($1,743)
Deposit Premium = $33,112
Premium Adjustment + $0
Total Amount Due = $33,112
Payment due within 30 Days
°,u20 &rrlr age Strcot. Suite 200, Citrus Heights, CA 95610-7632 - (800) 231-5742 www.acoiaipia.com
ITEM NO.
AGENDA REPORT
Board Meeting Date: February 26, 2009 APPROVED BY THE90AW)
OF THE YORBAL"rA;'IAira r
To: Board of Directors FEB 2 h
From: Kenneth R. Vecchiarelli, General Manager BY
Staff Contact: Diane Cyganik, Finance Director 'drn/~c S o
1'e C was M er/r
Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: N/A
Funding Source: All Funds
CEQA Account No: N/A Job No: N/A
Compliance: N/A Estimated Costs: $595,763.87 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 $220.89 to
Bank of America for January 2009 visa payment; a wire of $30,816.00 to ACWA/JPIA for
October through December 2008 workers' compensation premium; a wire of $5,807.50 to
Parsons for Job 200704 January 2009 services rendered; a wire of $33,112.00 to ACWA/JPIA
for April 2009 through March 2010 property insurance premium; a wire of $265.50 to ACWA-
EAP for March 2009 EAP; and, a wire of $81,185.75 to ACWA-HBA for March 2009 health
premium. The balance of $210,185.99 is routine invoices.
ADP is now issuing our payroll checks, with the exception of the third party checks, listed below.
In summary, the check register total is $361,593.63; payroll No. 3 total is $234,170.24; and, the
disbursements of this agenda report are $595,763.87. A summary of the checks is as follows:
Payables:
Void Check Check No. 50734
Computer Checks Check Nos. 50960 - 51051
Payroll #3:
Manual Checks Check Nos. 4248 - 4252
The disbursement total for the current period is $595,763.87, distributed as follows:
Water $ 586,275.17
Sewer $ 6,948.30
ID #1 $ 0.00
ID #2 $ 2.540.40
TOTAL $ 595,763.87
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 $595,763.87.
February 26, 2009
CHECK NUMBERS
50734 $ 0.00
50960 TO 51051 $ 210,185.99
WIRES:
W-21309 Bank of America $ 220.89
W-21309A ACWAIJPIA $ 30,816.00
W-22609 Parsons $ 5,807.50
W-22609A ACWAIJPIA $ 33,112.00
W-22609B ACWA-EAP $ 265.50
W-22609C ACWA-HBA $ 81,185.75
$ 151,407.64
TOTAL OF CHECKS AND WIRES: $ 361,593.63
PAYROLL NO. 3:
CHECK NUMBERS:
4248 TO 4252 $ 234,170.24
TOTAL: $ 595,763.87
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF FEBRUARY 26, 2009
TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS
AS FOLLOWS:
WATER $ 586,275.17 SEWER $ 6,948.30
113#1 $ 0.00 ID # 2 $ 2,540.40
TOTAL: $595,763.87
Yorba Linda Water DistrictCHECK REGISTER
FOR CHECKS DATED 02-13-09 THRU 02-26-09
Check. Check... Posting. Vendor Name Check.....
No Date Date Amount
50961 02-26-09 02-26-09, 11X17 INC. 2,047.00
50962 02-26-09 02-26-09'ABIGAIL ABBOTT STAFFING SVC 6,978.90
22609B 02-26-09 02-26-09 ACWA-HBA 265.50
22609C 02-26-09 02-26-09 ACWA-HBA 81,185.75
21309A 02-13-09 02-13-09 ACWA/JPIA 30,816.00
22609A 02-26-09 02-26-09 ACWA/JPIA 33,112.00
51045 02-26-09 02-26-09 AMERICAN GOLF 922.50
50963 02-26-09 02-26-09 ANAHEIM WHEEL & TIRE 150.00
50964 02-26-09 02-26-09 APOLLO TECHNOLOGIES INC. 380.00
50965 02-26-09 02-26-09 APPLIED BEST PRACTICES LLC 409.50
50966 02-26-09 02-26-09 AQUA-METRIC SALES CO. 12,329.08
50967 02-26-09 02-26-09 AQUATIC INSPECTIONS 2,185.00
50968 02-26-09 02-26-09 ARTISTIC MAINTENANCE, INC 1,605.00
50969 02-26-09 02-26-09 AT & T MOBILITY 386.73
50970 02-26-09 02-26-09 AT&T 45.09
50971 02-26-09 02-26-09 AW DIRECT INC. 138.76
50972 02-26-09 02-26-09 AWWA - DUES 478.00
W21309 02-13-09 02-13-09 BANK OF AMERICA 220.89
50973 02-26-09 02-26-09 BELL PIPE & SUPPLY 3,059.42
51046 02-26-09 02-26-09 BLDG. CONST SPECIALTIES INC 907.50
50974 02-26-09 02-26-09 BRODING'S BATTERY 83.24
50975 02-26-09 02-26-09 C & L REFRIGERATION CORP. 92.34
50976 02-26-09 02-26-09 CADET UNIFORM SERVICE 932.01
50977 02-26-09 02-26-09 CALOLYMPIC SAFETY CO. 272.79
50978 02-26-09 02-26-09 CDM, INC. 6,146.00
50979 02-26-09 02-26-09 CDW-G GOVERNMENT, INC 688.92
50980 02-26-09 02-26-09 CITY OF ANAHEIM 13,979.90
50981 02-26-09 02-26-09 CITY OF PLACENTIA 4,817.71
50982 02-26-09 02-26-09 CLA-VAL CO. 1,632.25
50983 02-26-09 02-26-09 CLINICAL LAB. OF SAN BERN. 1,495.00
50984 02-26-09 02-26-09 COGSDALE SERVICES CORPORATION 1,065.00
50985 02-26-09 02-26-09 CULLIGAN 1,816.30
50986 02-26-09 02-26-09 DAN COPP CRUSHING CORP. 174.00
50987 02-26-09 02-26-09 DATALOK ORANGE COUNTY 329.73
50988 02-26-09 02-26-09 DELTA DENTAL - PMI 296.32
Yorba Linda Water DistrictCHECK REGISTER
FOR CHECKS DATED 02-13-09 THRU 02-26-09
Check. Check... Posting. Vendor Name Check.....
No Date Date Amount
50989 02-26-09 02-26-09 ESTRADA HARDWARE CO INC. 815.00
50990 02-26-09 02-26-09 FRY'S ELECTRONICS 581.69
51047 02-26-09 02-26-09 GRAHAM CRACKERS-DEMO INC 980.31
50991 02-26-09 02-26-09 GRAINGER 319.43
50992 02-26-09 02-26-09 HARRINGTON INDUSTRIAL 64.02
50993 02-26-09 02-26-09 HEADSETS.COM 383.48
50994 02-26-09 02-26-09 HOME DEPOT CREDIT SERVICES 148.49
51048 02-26-09 02-26-09 HULK ENTERPRISES 744.94
50995 02-26-09 02-26-09 INFOSEND 3,207.97
50996 02-26-09 02-26-09 IPC 3,316.98
50997 02-26-09 02-26-09 KAREN SHEA 167.61
50998 02-26-09 02-26-09 KTS SERVICES, INC. 1,300.00
50999 02-26-09 02-26-09 LIEBERT CASSIDY WHITMORE 2,759.00
51000 02-26-09 02-26-09 LINCOLN NATIONAL LIFE 1,879.86
51001 02-26-09 02-26-09 M.L. ADAMS INSURANCE SERVICES 350.00
51002 02-26-09 02-26-09 MAG SYSTEMS, INC. 60.39
51003 02-26-09 02-26-09 MANAGEMENT ACTION PROGRAMS INC 3,100.00
51004 02-26-09 02-26-09 MAXIMUM PC 14.95
51005 02-26-09 02-26-09 McCORMICK,KIDMAN & BEHRENS LLP 6,039.93
51006 02-26-09 02-26-09 MORR-IS TESTED INC 4,275.00
51007 02-26-09 02-26-09 MUNICIPAL WATER DISTRICT 72.00
51008 02-26-09 02-26-09 MURCAL, INC. 2,125.61
51009 02-26-09 02-26-09 MWH SOFT INC 1,000.00
51010 02-26-09 02-26-09 NICKEY PETROLEUM CO 2,830.48
51011 02-26-09 02-26-09 OFFICE SOLUTIONS 160.61
51012 02-26-09 02-26-09 ORANGE COUNTY - I W M D 129.02
51013 02-26-09 02-26-09 ORANGE COUNTY REGISTER 1,040.40
51014 02-26-09 02-26-09 ORVAC ELECTRONICS 48.10
W22609 02-26-09 02-26-09 PARSONS ENGINEERING SCIENCE 5,807.50
51015 02-26-09 02-26-09 PARTS SOURCE ANAHEIM 225.96
51016 02-26-09 02-26-09 PECK ROAD TRUCK CENTER 267.89
51017 02-26-09 02-26-09 PLACENTIA DISPOSAL 499.36
51018 02-26-09 02-26-09 PLUMBERS DEPOT INC. 732.70
51019 02-26-09 02-26-09 PRAXAIR DISTRIBUTION 1,434.51
51020 02-26-09 02-26-09 PRESSURE SYSTEMS/KPSI 1,930.17
Yorba Linda Water DistrictCHECK REGISTER
FOR CHECKS DATED 02-13-09 THRU 02-26-09
Check. Check... Posting. Vendor Name Check.....
No Date Date Amount
51021 02-26-09 02-26-09 REFRIGERATION SUPPLIES 355.85
51022 02-26-09 02-26-09'RICARDO DE ANDA 500.00
51049 02-26-09 02-26-09 RON CHALMAN 1,000.00
51023 02-26-09 02-26-09 SACRAMENTO ADVOCATES 3,000.00
51024 02-26-09 02-26-09 SENSUS METERING SYSTEMS 431.00
51025 02-26-09 02-26-09 SIEMENS ENERGY & 859.32
51026 02-26-09 02-26-09 SMART COMPUTING 29.00
50960 02-13-09 02-13-09 SOUTHERN CALIF EDISON CO. 56,089.51
51027 02-26-09 02-26-09 SOUTHERN CALIF EDISON CO. 157.31
51028 02-26-09 02-26-09 SOUTHERN CALIF GAS CO. 18,517.66
51029 02-26-09 02-26-09 SOUTHWEST NETWORKS INC. 101.25
51030 02-26-09 02-26-09 SPINITAR 315.00
51031 02-26-09 02-26-09 ST.JOSEPH HERITAGE HEALTHCARE 160.00
51032 02-26-09 02-26-09 STACY BAVOL/PETTY CASH 154.99
51033 02-26-09 02-26-09 STAPLES BUSINESS ADVANTAGE 1,540.64
50734 01-08-09 02-19-09 STATE OF CA, DEPT OF PARKS -1,500.00
51051 02-26-09 02-26-09 STATE OF CA, DEPT OF PARKS 1,500.00
51050 02-26-09 02-26-09 TERRA PAVE INC 916.70
51034 02-26-09 02-26-09 THE BEE MAN 150.00
51035 02-26-09 02-26-09 THE U.S. TELEPHONE DIRECTORY 242.00
51036 02-26-09 02-26-09 TIME WARNER CABLE 187.38
51037 02-26-09 02-26-09 TOWNSEND PUBLIC AFFAIRS, INC. 5,000.00
51038 02-26-09 02-26-09 UNDERGROUND SERVICE ALERT 171.00
51039 02-26-09 02-26-09 USA BLUE BOOK 1,458.56
51040 02-26-09 02-26-09 VILLAGE NURSERIES 15.95
51041 02-26-09 02-26-09 WATER EDUCATION FOUNDATION 650.00
51042 02-26-09 02-26-09 WELLS SUPPLY CO 8,246.55
51043 02-26-09 02-26-09 WEST COAST SAFETY SUPPLY CO 253.66
51044 02-26-09 02-26-09 WESTSIDE BUILDING MATERIAL 812.81
361,593.63
i
ITEM NO.
AGENDA REPORT
Board Meeting Date: February 26, 2009 APPROVED BY THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
To: Board of Directors
FEB 2 6 2009
From: Ken Vecchiarelli, General Manager
Staff Contact: Diane Cyganik, Finance Director BY
Sandi Van Etten, Sr. Accountant 13 1;-7 14C s-iO
Reviewed by General Counsel: N/A Budgeted: N/A Total Budget:
Funding Source: All Funds
CEQA Account No: Job No:
Compliance: N/A Estimated Costs: Dept: Bus
Subject: Financial Statements for the quarter ending December 31, 2008
SUMMARY:
Both the Water and Sewer Funds had operating losses of $1,856,942 and $25,022 respectively
for the quarter ending December 31, 2008.
DISCUSSION:
The key factors affecting the Water Fund operating loss are outlined below:
Yorba Linda Water District
Monthly Financial Statement Analysis - Water Operating Fund
For the Quarter Ending December 31, 2008
December Y-T-D Y-T-D
Budget 2008 Budget Budget
Description FY 2008109 Actual Y-T-D Remaining Remaining
Total Water Revenue $ 17,498,010 $ 10,355,075 $ (7,142,935) -41%
Total Variable Water Costs $ 11,156,500 $ 6,169,603 $ 4,986,897 45%
Personnel Costs $ 7,389,200 $ 2,722,997 $ 4,666,203 63%
Supplies & Services $ 3,773,100 $ 1,702,897 $ 2,070,203 55%
Revenues are higher than budgeted. Keep in mind that December billing revenue covers usage
for October and November which were unseasonably warm, dry months. Variable water costs
are still higher than budgeted. However, due primarily to an adjustment of $493,800, reducing
the booked Groundwater Replenishment Assessment (RA) liability account, the percent higher
than budget was reduced to 5% this month, down from 12% last month. This adjustment
accounts for water pumped out of the basin under the Metropolitan Water District's Long Term
Storage Program. This water is purchased through MWDOC and is paid for on a monthly basis
at the MWD/MWDOC rates. Therefore when the District pays for the balance of the groundwater
pumped, which is paid to OCWD every six months, it does not pay twice for this water. Also
contributing to the reduction is the fact that purchased and pumped water totaled nearly 1,000
acre feet less than budgeted in December due to the wet, cooler weather. Personnel costs are
lower than anticipated due to budgeted positions that have not been filled. Also, though all labor
costs are included in the Budget column, Actual costs do not include labor directly applied to
capitalized projects. Instead, direct labor applied to projects is posted to Construction in
Progress (CIP), an asset, and not to salary expense. All ADP payrolls have now been posted
through December. Supplies and Services are under budget at this point in time.
The key factors affecting the Sewer Fund operating loss are outlined below:
Yorba Linda Water District
Monthly Financial Statement Analysis - Sewer Operating Fund
For the Quarter Ending December 31, 2008
December Y-T-D Y-T-D
Budget 2008 Budget Budget
Description FY 2008109 Actual Y-T-D Remaining Remaining
Sewer Maintenance Charges $ 1,249,850 $ 646,124 $ (603,726) -48%
Personnel Costs $ 730,800 $ 249,244 $ 481,556 66%
Supplies & Services $ 339,600 $ 154,613 $ 184,987 54%
The Sewer Maintenance Charges (revenue) are slightly over budget. The Locke Ranch
maintenance assessments of $43,507 received in December via property tax payments explains
the increase. December and April are the months with the largest tax payments. Personnel
costs are still under budget due to existing vacant positions in the Water Fund. As stated in the
water analysis, there are salary costs posted to CIP which are not recorded as actual personnel
expense, thereby increasing the under budget amount. Additionally, though all ADP payrolls
have been posted through December, the salary allocation journals have not. This journal does
not change any net figures, but it will impact the recording of personnel costs by fund. Sewer
costs will increase by about $50,000 to $70,000 and water costs will decrease. After accounting
for this journal, sewer's personnel costs would be around 12% of water's personnel costs, a
combination of direct charges to sewer labor and reclassification of water labor costs to sewer.
Supplies & Services are slightly under budget, being 9% of water expenses as expected.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors reviews each quarter's financial statements. The financial statements for
the quarter ended September 30, 2008 were received and filed on December 23, 2008.
STAFF RECOMMENDATION:
That the Board of Directors receive and file the financial statements for the quarter ending
December 31, 2008. The Finance-Accounting Committee reviewed the financial statements on
February 10, 2009 and accepted them as presented.
ITEM NO. ~U
AGENDA REPORT
Board Meeting Date: February 26, 2009 APPROVED BY THE BOARD OF DIRECTORS
OFTNUORBA iND4 NATER DISTRICT
i
To: Board of Directors
Jg
FEB
From: Ken Vecchiarelli, General Manager
Staff Contact: Diane Cyganik, Finance Director SM 112 c 5=o
Sandi Van Etten, Sr. Accountant
Reviewed by General Counsel: N/A Budgeted: N/A Total Budget:
Funding Source: N/A
CEQA Account No: Job No:
Compliance: N/A Estimated Costs: Dept: Bus
Subject: Investment Report for quarter ending December 31, 2008
SUMMARY:
Government Code Section 53607, et, seq., requires the person delegated to invest funds to
make a quarterly report of the investments to the legislative body. Staff is submitting the report
for the quarter ending December 31, 2008.
DISCUSSION:
Government Code Section 53607, et, seq., requires the person delegated to invest funds to
make a quarterly report of the investments to the legislative body.
The average portfolio yield for total investments excluding Wells Capital is 0.76% compared to
the December 2007 yield of 3.70%. The average portfolio yield including Wells Capital is 1.11
The average number of days to maturity as of December 31, 2008 equaled 75 days, and the
average term for the portfolio totaled 25 days.
The Water Fund net investments excluding annexation fees, reserve funds and revenue funds
are ($3,049,868), as compared to prior year investments at this point in time of ($1,285,352).
The operating fund interest earned in the month of December 2008 is $518. Total operating
fund interest received for fiscal year 2008/2009 is $4,378. The operating fund investment
interest comparison is listed below:
Actual for the Months of 12/31/07 12/31/08
Monthly Interest $ 2,845 $ 518
Year to Date $22,839 $ 4,378
Fiscal Year 2007/2008 2008/2009
Interest Budget - annual $86,000 $64,500
Interest earned on investments is recorded in the Fund that owns the investment.
Investment Summary Comparison
The distribution of investments by fund for December 2008 is as follows:
Fund Description Balance 12/31/08
Annexation $9,448,511 18.67%
Water Operating (3,049,868) -6.03%
Water R&R 2,041,990 4.03%
Water-Capital Projects 149,500 0.30%
Restrict-Debt Service 1,145,620 2.26%
COP Bond 2003 0 0.00%
COP Bond 2008 24,952,582 49.30%
Sewer Operating 1,469,168 2.90%
Sewer R&R 261,551 0.52%
Sewer Capital Projects 188,105 0.37%
ID1 4,367,595 8.63%
ID2 9,636.813 19.04%
$50.611,567 100.00%
STAFF RECOMMENDATION:
That the Board of Directors receive and file the investment report for the quarter ending
December 31, 2008.
COMMITTEE RECOMMENDATION:
The Finance-Accounting Committee has reviewed and discussed the Investment Report and
supports staffs recommendation.
ITEM NO.
AGENDA REPORT
Board Meeting Date: February 26, 2009 APPROVED BY THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
To: Board of Directors FEB 2 6 2009
From: Ken Vecchiarelli, General Manager
BY
Staff Contact: Steve Conklin, Engineering Manager !3/r~~~2c SO
Ariel Bacani, Engineering Technician
Reviewed by General Counsel: N/A Budgeted: N/A Total Budget: N/A
Funding Source: N/A
CEQA Account No: N/A Job No: 200712
Compliance: N/A Estimated Costs: N/A Dept: Eng
Subject: Quitclaim Deeds to Friendship Baptist Church
SUMMARY:
Friendship Baptist Church has requested the District to abandon two sections of an existing 15-
foot wide water easement within the Friendship Baptist Church campus, which is located on the
northwest corner of Imperial Highway and Bastanchury Road. This easement was originally
recorded on March 5, 1999 as Instrument Number 19990159769 of Official Records of Orange
County, California.
DISCUSSION:
On July 10, 2008, the District was granted a 15-foot wide water easement to cover a relocated
water main within the Friendship Baptist Church's property. With this new easement in place,
the owner has requested that the District quitclaim two sections of the existing 15-foot water
easement covering two abandoned water mains. Please see the attached exhibits.
Staff has reviewed this request and has determined that the two sections of the prior 15-foot
wide easement are no longer required and that their abandonment will not unduly hinder the
District's ability to operate, maintain, and replace the new water main.
STAFF RECOMMENDATION:
Recommend the Board of Directors authorize the President and Secretary to execute two
Quitclaim Deeds to Friendship Baptist Church, abandoning two separate sections of the 15-foot
wide District easement recorded as Instrument Number 19990159769 of Official Records of
Orange County, California.
l
WHEN RECORDED MAIL TO: EXEMPT FROM FEES
PUBLIC AGENCY
Yorba Linda Water District GOVERNMENT CODE
P.O. Box 309 SEC. 27383
Yorba Linda, California 92885-0309
Documentary transfer tax is given
NO CONSIDERATION
Kenneth R. Vecchiarelli, Secretary SPACE ABOVE THIS LINE FOR RECORDER'S USE
EASEMENT QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the
YORBA LINDA WATER DISTRICT, a public corporation of the State of California, does
hereby REMISE, RELEASE AND FOREVER QUITCLAIM to FRIENDSHIP BAPTIST
CHURCH, owner of strip of land described as follows:
BEING A PORTION OF LOTS 23 THROUGH 36 IN BLOCK 18, A PORTION OF LOTS 1
THROUGH 48 IN BLOCK 17 AND A PORTION OF LOTS 25 THROUGH 31 IN BLOCK 16,
MAP OF CARLTON AS SHOWN BY MAP ON FILE IN BOOK 29, PAGES 9 AND 10 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, ALONG WITH
THAT PORTION OF THE EAST HALF OF FOURTH STREET, THAT PORTION OF THIRD
STREET AND THAT PORTION OF LOS ANGELES STREET VACATED AND
ABANDONED BY INSTRUMENT RECORDED JULY 10, 1953 IN BOOK 2536, PAGE 441
OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA.
all rights, title and interest in the easement over the real property in the City of Yorba Linda,
County of Orange, State of California, more particularly described as follows:
The real property described in Exhibit "A" and shown on Exhibit "B" attached hereto, and by
this reference made a part hereof.
Dated: YORBA LINDA WATER DISTRICT
John W. Summerfield, President
Kenneth R. Vecchiarelli, Secretary
JB#71250001 LD1431
05-23-08
EXHIBIT "A"
EASEMENT VACATION
PARCEL A
Being a portion of an existing water easement to Yorba Linda Water District and
recorded on March 5, 1999 as instrument number 19990159769 of the Official Records
of Orange County, California Also being a portion of Blocks 17 and 18, Map of Carlton,
as shown by Map on file in Book 29, Pages 9 and 10 of Miscellaneous Records of Los
Angeles County, California and more particularly described as follows:
Commencing at centerline intersection of Bastanchury Road and 4a' Street (abandoned
per document recorded in Book 2536, Page 441 of the Official Records of Orange
County) as shown by said Map of Carlton; Thence N00°29' 10"E along the centerline of
said 0 Street (abandoned), a distance of 50.00 feet to a point on the north line of said
Bastanchury Road per Declaration of Dedication recorded August 22, 1996 as instrument
number 19960430631; Thence S89°43'13"E along said north line of Bastanchury Road a
distance of 42.00 feet; Thence N00°29' 10"E along the east line of said instrument
number 19990159769, a distance of 129.96 feet; Thence S89°30'50"E along the south
line of said instrument number 19990159769, a distance of 249.51 feet to the Point of
Beginning; Thence N00°29' 10"E departing said south line, a distance of 20.00 feet to the
north line of said instrument number 19990159769; Thence S89°30'50"E along said
north line, a distance of 11.68 feet; Thence N00°29'10"E along a west line of said
instrument number 19990159769, a distance of 148.63 feet; Thence N29°29'53"E
departing said west line, a distance of 20.00 feet to the southwesterly line of the S.P.R.R.
Right-of-Way, as shown on a Record of Survey and recorded on March 26, 1976, in
Book 96, Pages 19-23 of the Official Records of Orange County, California; Thence
along said southeasterly Right-of-Way, S60°30'07"E, a distance of 11.78 feet to the east
line of said instrument number 19990159769; Thence S00°29' 10"W along said east line,
a distance of 180.41 feet; Thence N89°30'50"W along the south line of said instrument
number 1999015769, a distance of 31.68 feet to the Point of Beginning.
As shown on Exhibit B, attached hereto and by reference made part hereof.
And containing 3,842 square feet of land, more or less.
SHEET 1 OF 2
JB#71250001 LD1431
05-23-08
PARCEL B
Being a portion of an existing water easement to Yorba Linda Water District and
recorded on March 5, 1999 as instrument number 19990159769 of the Official Records
of Orange County, California. Also being a portion of Blocks 17, Map of Carlton, as
shown by Map on file in Book 29, Pages 9 and 10 of Miscellaneous Records of Los
Angeles County, California and more particularly described as follows:
Commencing at centerline intersection of Bastanchury Road and 4tt' Street (abandoned
per document recorded in Book 2536, Page 441 of the Official Records of Orange
County) as shown by said Map of Carlton; Thence N00°29' 10"E along the centerline of
said 4th Street (abandoned), a distance of 50.00 feet to a point on the north line of said
Bastanchury Road per Declaration of Dedication recorded August 22, 1996 as instrument
number 19960430631; Thence S89'43'1 3"E along said north line of Bastanchury Road a
distance of 42.00 feet; Thence N00°29' 10"E along the east line of said instrument
number 19990159769, a distance of 149.96 feet; Thence S89°30'50"E along the north
line of said instrument number 19990159769, a distance of 148.00 feet to the Point of
Beginning; Thence continuing along said water easement per instrument number
19990159769 the following three (3) courses, N00°29'10"E a distance of 10.00 feet;
Thence S89°30'50"E a distance of 20.00 feet; Thence SO0°29'10"W a distance of 10.00
feet; Thence N89°30'50"W departing said water easement boundary, a distance of 20.00
feet to the Point of Beginning.
As shown on Exhibit B, attached hereto and by reference made part hereof.
And containing 200 square feet of land, more or less.
\_A N D S~9GF
GARY D. o
NEAL
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QGary D. eal L.S. 4619 Exp: 09/30/2008 F ~F C
Date
SHEET 2 OF 2
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zl IgL PER MAP OF CARLTON
M.R. L. A. CO. 29/9-10 -
1~ PARCEL A
WATER DISTRICT
N00°29'10"E - I B ,0 CAlu TO j0 YORBA LINDA EASEMENT PORTION
I 2919'
20.00 I I- M LL, CO TO BE VACATED
3,842 sq.
ft
N8903W50"W I lo; EXISTING WATER EASEMENT
2200' I I9 PER INSTRUMENT #19990159769
zOFFICIAL RECORDS OF ORANGE COUNTY a
I S00029'10"W 11.68'°.
3 I I POINT OF 10.00 N8r30'50"W
BEGINNING 20.00'
I I PARCEL B N00029'10"E
10.00'
I N89°30'S0"W - - - 148.00' 20. 989°305PW
F~ ~ I 93.19' - 31.68'
^N W I -----------------249----
e
N89°30'50"W 281.19'
CL FOURTH STREET
PER MAP OF CARLTON N00°29'10"E
C+O w I I M.R.L.A. CO. 29/9-10 20.00'
PARCEL B POINT OF
a I I YORBA LINDA WATER DISTRICT BEGINNING
I 31 EASEMENT PORTION PARCEL A
~ I TO BE VACATED
z I a,I 200 sq.fL SCALE: 1"=60'
PER DECLARATION OF DEDICATION
I I RECORDED 08/22/96, INSTRUMENT #19960430631
OFFICIAL RECORDS OF ORANGE COUNTY
w 42.00' N89043'13 "W EXHIBIT "B"
0
- SKETCH TO ACCOMPANY LEGAL DESCRIPTION # 1431
6 $ POINT OF
N COMMENCEMENT o O
Z- N89043'13"W Fi~~rosn8leM 8ernyon
BASTANCHURY
400 N. Tustin Avenue, Suite 230, Santa Ake, CA. 02706
ROAD Tel 17747 079-2290 www.norrisropke.com
WHEN RECORDED MAIL TO: EXEMPT FROM FEES
PUBLIC AGENCY
Yorba Linda Water District GOVERNMENT CODE
P.O. Box 309 SEC. 27383
Yorba Linda, California 92885-0309
Documentary transfer tax is given
NO CONSIDERATION
Kenneth R. Vecchiarelli, Secretary SPACE ABOVE THIS LINE FOR RECORDER'S USE
EASEMENT QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the
YORBA LINDA WATER DISTRICT, a public corporation of the State of California, does
hereby REMISE, RELEASE AND FOREVER QUITCLAIM to FRIENDSHIP BAPTIST
CHURCH, owner of strip of land described as follows:
BEING A PORTION OF LOTS 23 THROUGH 36 IN BLOCK 18, A PORTION OF LOTS 1
THROUGH 48 IN BLOCK 17 AND A PORTION OF LOTS 25 THROUGH 31 IN BLOCK 16,
MAP OF CARLTON AS SHOWN BY MAP ON FILE IN BOOK 29, PAGES 9 AND 10 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, ALONG WITH
THAT PORTION OF THE EAST HALF OF FOURTH STREET, THAT PORTION OF THIRD
STREET AND THAT PORTION OF LOS ANGELES STREET VACATED AND
ABANDONED BY INSTRUMENT RECORDED JULY 10, 1953 IN BOOK 2536, PAGE 441
OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA.
all rights, title and interest in the easement over the real property in the City of Yorba Linda,
County of Orange, State of California, more particularly described as follows:
The real property described in Exhibit "A" and shown on Exhibit "B" attached hereto, and by
this reference made a part hereof.
Dated: YORBA LINDA WATER DISTRICT
John W. Summerfield President
Kenneth R. Vecchiarelli, Secretary
EXHIBIT "A"
LEGAL DESCRIPTION
PARTIAL EASEMENT QUITCLAIM
THE LAND REFERRED TO HEREIN IS SITUATED IN THE CITY OF YORBA LINDA, COUNTY OF
ORANGE, STATE OF CALIFORNIA.
BEING A PORTION OF BLOCK 17, AS SHOWN BY MAP ON FILE IN BOOK 29, PAGES 9 AND 10 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
COMMENCING AT THE EASTERLY TERMINUS OF THAT CERTAIN SOUTHERLY EASEMENT LINE
SHOWN AS "N89030'50"W 281.19 FEET" PER DEED OF EASEMENT GRANTED TO YORBA LINDA
WATER DISTRICT, RECORDED MARCH 5, 1999 AS INSTRUMENT NO. 99-0159769 OF OFFICIAL
RECORDS; THENCE ALONG SAID SOUTHERLY LINE N89°30'50"W A DISTANCE OF 20.00 FEET TO
THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID SOUTHERLY LINE
N89030'50"W A DISTANCE OF 261.19 FEET TO THE SOUTHERLY TERMINUS OF THAT CERTAIN
EASEMENT LINE SHOWN AS "N00029'10"E 279.00 FEET" ON SAID DEED; THENCE ALONG SAID
EASEMENT LINE N00029'10"E 20.00 FEET; THENCE DEPARTING SAID LINE AND ALONG THOSE
LINES LYING NORTHERLY OF HEREINABOVE DESCRIBED SOUTHERLY EASEMENT LINE SHOWN
AS "N89030'50"W 281.19 FEET" ON SAID DEED, THE FOLLOWING COURSES: S89130'50"E A
DISTANCE OF 148.00 FEET; THENCE N00129'10"E A DISTANCE OF 10.00 FEET; THENCE
S89030'50"E A DISTANCE OF 20.00 FEET; THENCE S00029'10"W A DISTANCE OF 10.00 FEET;
THENCE S89030'50"E A DISTANCE OF 93.19 FEET TO THAT CERTAIN EASEMENT LINE SHOWN AS
"N00029'10"E 148.63 FEET" ON SAID DEED; THENCE ALONG THE SOUTHERLY PROLONGATION
OF THE LAST EASEMENT LINE HEREINABOVE DESCRIBED S00029'10'VV A DISTANCE OF 20.00
FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING AN AREA OF 5,424 SQUARE FEET MORE OR LESS
ALL AS SHOWN ON EXHIBIT `B' ATTACHED HERETO AND BY THIS REFERENCE
MADE A PART HEREOF.
PoFEssroN
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CARLTON (VACATED) \
M.R.L.A CO_29/9-10
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o DISTRICT PER
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N89'30'50"W 281,19' C
PORTION OF EXIST.
Cl EASEMENT TO YORBA LINDA c$ �AD
m WATER DISTRICT PER ^c 4&
19990159769-O.R. TO BE NN
I w BLOCK 17 QUITCLAIMED 0
Io MAP OF CARLTON
N M.R.L.A. CO. 29/9-10
°o PER DECLARATION OF DEDICATION RECORDED
Z 08/22/96, INSTRUMENT NO. 19960430631
OFFICIAL RECORDS OF ORANGE COUNTY
N89'43'13"W
I
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L
SCALE: 1"= 60'
PREPARED IN THE OFFICE EXHIBIT V
ADAMS • STREETER
CIVIL ENGINEERS, INC. R
[Nine, CA Corporate PORTION OF WATER LINE EASEMENT
Ph: (949) 474-2330 QUITCLAIM
0
N
M
DATE: 10-15-08
JN: 08-1710
ITEM NO.
AGENDA REPORT
APPROVED BY THE BOARD OF JIREC TORS
OF THE YORBA LINDA WATER DISTRICT
Board Meeting Date: February 26, 2009
FEB 2 6 ?Ong
To: Board of Directors
BY
From: Ken Vecchiarelli, General Manager
13f 17/ ~,2 a 57--c
Staff Contact: Steve Conklin, Engineering Manager
Ariel Bacani, Engineering Technician
Reviewed by General Counsel: N/A Budgeted: N/A Total Budget: N/A
Funding Source: N/A
CEQA Account No: N/A Job No: 200705
Compliance: N/A Estimated Costs: N/A Dept: Eng
Subject: Quitclaim Deed to Yorba Linda Housing Partners, L.P.
SUMMARY:
Yorba Linda Housing Partners, L.P. has requested the District to abandon an existing 15-foot
wide water easement within the Linda Garden Apartments, located east of Plumosa Drive,
between Avolinda Drive and Lemon Drive. This easement was originally recorded on December
14, 1962 in Book 6360, Pages 856-859 of Official Records of Orange County, California.
DISCUSSION:
On March 18, 2008, the District was granted a 15-foot wide water easement to cover the
relocated water main at the southeastern side of Yorba Linda Housing Partners' property. With
the new easement in place, the owner has requested that the District quitclaim the existing 15-
foot water easement covering the abandoned water main. Please see the attached exhibit.
Staff has reviewed this request and has determined that the prior 15-foot wide easement is no
longer required and that the abandonment of this easement will not unduly hinder the District's
ability to operate, maintain, and replace the new water main.
STAFF RECOMMENDATION:
Recommend the Board of Directors authorize the President and Secretary to execute a
Quitclaim Deed to Yorba Linda Housing Partners, L.P., abandoning the 15-foot wide District
easement recorded in Book 6360, Pages 856-859 of Official Records of Orange County,
California.
~I
WHEN RECORDED MAIL TO: EXEMPT FROM FEES
PUBLIC AGENCY
Yorba Linda Water District GOVERNMENT CODE
P.O. Box 309 SEC. 27383
Yorba Linda, California 92885-0309
Documentary transfer tax is given
NO CONSIDERATION
Kenneth R. Vecchiarelli, Secretary SPACE ABOVE THIS LINE FOR RECORDER'S USE
EASEMENT QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the
YORBA LINDA WATER DISTRICT, a public corporation of the State of California, does
hereby REMISE, RELEASE AND FOREVER QUITCLAIM to YORBA LINDA HOUSING
PARTNERS, L.P., owner of strip of land described as follows:
THE NORTH 462.07 FEET OF LOT 8 IN BLOCK 12 OF THE YORBA LINDA
TRACT, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 5, PAGES 17
AND 18 OF MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY.
EXCEPT THE WEST 130 FEET OF THE NORTH 150 FEET THEREOF
all rights, title and interest in the easement over the real property in the City of Yorba Linda,
County of Orange, State of California, more particularly described as follows:
The real property described in Exhibit "A" and shown on Exhibit "B" attached hereto, and by
this reference made a part hereof.
Dated: YORBA LINDA WATER DISTRICT
John W. Summerfield, President
Kenneth R. Vecchiarelli, Secretary
EXHIBIT 'A'
WATER EASEMENT QUITCLAIM
BEING A PORTION OF AN EASEMENT FOR YORBA LINDA COUNTY WATER DISTRICT AS RECORDED IN BOOK 6360
PAGE 856 TO 859 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY
AND BEING FURTHER DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF LOT 8 IN BLOCK 12 OF THE YORBA LINDA TRACT, AS SHOWN ON
A MAP THEREOF RECORDED IN BOOK 5, PAGES 17 THROUGH 18 OF MISCELLANEOUS MAPS, RECORDS OF
ORANGE COUNTY. SAID POINT ALSO LYING ON THE EASTERLY RIGHT—OF—WAY LINE OF PLUMOSA DRIVE BEING
60 FEET WIDE;
THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID LOT 8 NORTH 89'31'55" EAST 629.99 FEET;
THENCE LEAVING SAID NORTHERLY LINE SOUTH 00'30'14" WEST 10.00 FEET TO THE TRUE POINT OF BEGINNING
SAID POINT ALSO LYING ON THE EASTERLY
LINE OF PARCEL 3 OF SAID EASEMENT;
THENCE CONTINUING SOUTH 89'31'55" WEST 452.07 FEET TO THE SOUTHERLY OF PARCEL 2 OF SAID
EASEMENT;
THENCE CONTINUING WESTERLY ALONG SAID
SOUTHERLY LINE SOUTH 89'31'55" WEST 45.00 FEET TO THE
WESTERLY LINE OF PARCEL 2;
THENCE NORTHERLY ALONG SAID WESTERLY
LINE NORTH 00'30'14" EAST 7.00 FEET TO THE NORTHERLY LINE
OF SAID PARCEL 2;
THENCE EASTERLY ALONG SAID NORTHERLY
LINE NORTH 89'31'55" EAST 30.00 FEET TO THE WESTERLY LINE OF
PARCEL 3;
THENCE NORTHERLY ALONG SAID WESTERLY
LINE NORTH 00'30'14" EAST 312.06 FEET TO A POINT ON THE
SOUTHERLY LINE OF PARCEL 5;
THENCE THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 89'31'55" WEST 30.00 FEET TO THE
WESTERLY END OF SAID PARCEL 5;
THENCE NORTHERLY ALONG SAID WESTERLY
LINE NORTH 0930'4" EAST 10.00 FEET TO THE NORTHERLY LINE
OF SAID PARCEL 5;
THENCE EASTERLY ALONG SAID NORTHERLY
LINE NORTH 89'31'55" EAST 30.00 FEET TO A POINT ON THE
WESTERLY LINE OF SAID PARCEL 3;
THENCE NORTHERLY ALONG SAID WESTERLY LINE NORTH 00'30'14" EAST 123.00 FEET;
THENCE NORTH 89'31'55" EAST 15.00 FEET BACK TO THE TRUE POINT OF BEGINNING.
•
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DCi ENGINEERING, INC.
1400 N. KELLOGG DRIVE
SUITE F
ANAHIEM, CA 92807
(714) 779.3828
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ITEM NO. '
AGENDA REPORT APPROVED BY THE BOARD OF OIRECTORS
OF THE YORBA LINDA WATER DISTRICT
Board Meeting Date: February 26, 2009 FEB 2 6 2009
To: Board of Directors
BY 9~
From: Ken Vecchiarelli, General Manager e- / ,oy 5-no
Staff Contact: Pat Grady, Assistant General Manager/ I.T. Director
Reviewed by General Counsel: N/A Budgeted: No Total Budget:
Funding Source: All Funds
CEQA Account No: Job No:
Compliance: N/A Estimated Costs: $2,500 Dept: Admin
Subject: Formation of a Citizen's Advisory Committee
SUMMARY:
A Citizen's Advisory Committee would provide valuable community input to staff and the Board
of Directors on upcoming issues such as development and implementation of a conservation
ordinance, the impact of water allocations on water rates and fees and other issues that will
potentially affect the upcoming budget process.
DISCUSSION:
As the budgets for FY 2009/10 and FY 2010/2011 are developed, staff intends to present the
budget for both fiscal years simultaneously with a revised schedule of rates and fees for Board
discussion, consideration and ultimately for Board approval in June 2009.
Revenue projections from the proposed budget will drive a revised schedule of rates and fees.
Additionally, a water conservation pricing structure and adoption of water conservation fees will
need to be considered to achieve reduction of water usage throughout the District's service
boundaries. Development of the revised rates and fees will be a complex and potentially
controversial undertaking. For this reason, staff believes that formation of a Citizen's Advisory
Committee is essential for stakeholder buy-in, and to assist in providing feedback to both staff
and the Board during this process. The advisory committee will become familiar with pending
District issues such as the anticipated financial needs, conservation, water allocations, and rates
and fees. The end goal of the committee is to develop a final report of recommendations for
submission to the Board.
It is staff's recommendation that a committee of 15 members be formed initially, with the
assumption that the committee may be reduced to a core of approximately ten citizens through
attrition. Staff also suggests that the committee consist of citizens that represent various sectors
of the community in proportion to our customer base and water consumption percentages, i.e.
residential, commercial, and multi-family, irrigation, institutional, non-profit organizations, etc.
The application process will assist in developing this representation.
~ l
Should the Board approve formation of a Citizen's Advisory Committee, the following timeline
and events are anticipated:
1. Staff would immediately initiate advertising and soliciting interested participants
through an on-line application process and set a deadline for application submission.
The deadline for applications could be March 16, 2009.
2. Staff will sort and present the applications to the Board for the March 26th regular
meeting. Each director could appoint three members.
3. The committee would begin to meet. Staff believes each meeting should be open to
the public and subject to the Brown Act as this committee was formed and appointed
by the Board of Directors. Meetings would take place with a frequency of two or three
each month during the months of April and May 2009.
4. During the first meeting, Staff will provide the committee with a mission statement and
clear direction as to the goal of the committee. The committee will select a
chairperson and a vice-chair and decide on their meeting dates, times, and location.
District facilities would be available and suggested for this purpose.
5. At each meeting, staff will be available for support and provide all information and
documents to the committee to facilitate their process and to develop their final report
of recommendations to the Board.
6. Upon presentation of the final report, the committee could be disbanded or become
dormant with the anticipation that their services may again be required in the future.
Compensation for the members of the Citizen's Advisory Committee would not be applicable as
participation is voluntary.
PRIOR RELEVANT BOARD ACTION(S): In January 1994, the Board of Directors approved the
formation of a citizen's advisory committee of ten members to provide community input into the
District's planning and financial processes at that time.
STAFF RECOMMENDATION: That the Board of Directors approve the formation of a Citizen's
Advisory Committee and authorize the General Manager to begin the selection process.
COMMITTEE RECOMMENDATION:
This matter was discussed at the Executive-Administrative-Organizational Committee Meeting
on February 17, 2009.
ITEM NO.
AGENDA REPORT
APPROVED BY THE BOARD OF DIRECTORS
Board Meeting Date: February 26, 2009 OFTHEYORBALINDA WATER DISTRICT
To: Board of Directors FEB 2 6 2009
From: Ken Vecchiarelli, General Manager BY
3i~ / 2C s~
Staff Contact: Pat Grady, Assistant General Manager/ I.T. Director
Reviewed by General Counsel: N/A Budgeted: N/A Total Budget:
Funding Source:
CEQA Account No: Job No:
Compliance: N/A Estimated Costs: $1,200 Dept: Admin
Subject: Formation of a Revenues and Rates Ad Hoc Committee
SUMMARY:
The purpose of forming a Revenues & Rates Ad-hoc Committee is for the committee to provide
input and direction to staff during the upcoming budget process for those items related to
revenues and rates necessary to fund the proposed budget. Additionally, this ad-hoc committee
would interact with the Citizen's Advisory Committee, if formed by the Board.
DISCUSSION:
The budget process for FY 2009/10 and 2010/11 is in progress. Staff is recommending that the
budget be divided into segments that will be reviewed by various Board committees as these
segments are drafted. As the committees review each segment and consensus is developed,
these recommendations would flow into the final budget for Board discussion and adoption
during the regular meetings in June 2009.
With this systematic approach, staff is confident the budget process will proceed and be
completed in an efficient manner. However, to further assist in this process, staff recommends
the formation of a Revenues & Rates Ad-hoc Committee which would be active during the
budget and the rate setting process. This ad-hoc committee would also interact with the
Citizen's Advisory Committee as that committee begins to finalize their recommendations to the
Board.
Staff is recommending the budget be segmented into the following areas with review from the
respective Board committees as the budget process continues:
1. Capital Improvement & Replacement Projects
(Planning-Engineering-Operations Committee - Directors Mills & Armstrong)
2. Labor & Benefits
(Personnel-Risk Management Committee - Directors Armstrong & Collett)
3. Operating & Non-Operating Expenses
(Finance-Accounting Committee - Directors Beverage & Summerfield)
4. Operating/Non-Operating Revenues & Rates
(Revenues & Rates Ad-hoc Committee - Recommendation:
Directors Collett & Mills)
Additionally, staff has prepared a tentative budget schedule as follows:
Date Activity
2/26 Formation of Revenues & Rates Ad-hoc committee by
the full Board
3/19 Department budgets complete and submitted to the
Finance Department
15t week in April Labor and Benefits discussion (Personnel-Risk
Management Committee)
4/2 Capital improvement & replacement projects discussion
(PEO Committee)
4/14 Operating & Non-operating expenses discussion
(Finance-Accounting Committee)
1st week in May Revenues & rates discussion (Revenues & Rates Ad-hoc
Committee)
6/11 Budget workshop (Full Board)
6/25 Budget adoption (Full Board)
PRIOR RELEVANT BOARD ACTION(S):
None
STAFF RECOMMENDATION:
That the Board of Directors establish a Revenues & Rates Ad-hoc Committee to be active and
engaged during the budget and rate setting process.
COMMITTEE RECOMMENDATION:
The Executive-Administrative-Organizational Committee met and discussed staffs proposal,
with one committee member absent. President Summerfield supported staffs recommendation.
ITEM NO.
MINUTES OF THE
YORBA LINDA WATER DISTRICT
EXECUTIVE-ADMINISTRATIVE-ORGANIZATIONAL COMMITTEE MEETING
February 17, 2009
A meeting of the Executive-Administrative-Organizational Committee was called to
order by Chairman Summerfield at 4:00 p.m. The meeting was held at the District
Administrative Office at 1717 East Miraloma Avenue, Placentia, California.
COMMITTEE STAFF
Director John Summerfield, Chair Ken Vecchiarelli, General Manager
Pat Grady, Asst. General Manager
PUBLIC COMMENTS
None.
ACTION ITEMS
1. General Manager's Employment Contract.
This item was deferred at the request of Mr. Vecchiarelli.
DISCUSSION ITEMS
2. 2009 Board of Directors Strategic Planning Workshop
The Committee discussed staff's proposal and expectations for the workshop
scheduled for March 23. Staff briefly outlined critical topics for consideration,
expected differences in the process from previous budget practices and
discussed their experiences with John Acampora, the representative from
Management Action Program who will facilitate the workshop.
3. Report on Legislative Activities - Sacramento Advocates
The committee briefly reviewed and discussed the State Capitol Update report
prepared by Sacramento Advocates, Inc. The primary focus was the massive
budget deficit and pending compromise solutions to get to the long-awaited
budget adoption.
4. Report on Grant Activities - Townsend Public Affairs
Sean Fitzgerald of TPA summarized their monthly activity report of state and
federal political highlights. While the state was focused on the budget
compromise, the federal legislature was actively engaged in the debate and
passing of a stimulus package. Sean discussed funding opportunities in the near
future through various programs managed by the State Water Resources Control
Board and the Department of Public Health.
5. General Counsel's Monthly Summary Billing Reports
The Committee received the monthly report with few comments or concerns.
1
6. Directors' and General Manager's Fees and Expenses (Oct-Dec)
The report showed year-to-date trends well below budget for both the General
Manager's and the Boards' fees and expenses.
ADJOURNMENT
The Committee Adjourned at 5:25 p.m. The next meeting of the Executive-
Administrative-Organizational Committee will be held March 17, 2009 at 4:00 p.m.
2
l
ITEM NO.
MINUTES OF THE
YORBA LINDA WATER DISTRICT and CITY OF PLACENTIA
AD HOC COMMITTEE MEETING
February 18, 2009
A meeting of the Yorba Linda Water District and City of Placentia Ad Hoc Committee
was called to order by Director Beverage at 1:30 p.m. The meeting was held at the
District Administrative Office at 1717 East Miraloma Avenue, Placentia, California.
YLWD COMMITTEE MEMBER YLWD STAFF
Michael J. Beverage, Director Ken Vecchiarelli, General Manager
Pat Grady, Asst. General Manager
CITY OF PLACENTIA COMMITTEE MEMBER
Greg Sowards, Mayor
i
CITY OF PLACENTIA STAFF
Troy Butzlaff, City Administrator
PUBLIC COMMENTS
None.
DISCUSSION ITEMS
1. Joint Synthetic Turf Demonstration Project
This item was placed on the agenda by the City of Placentia. Mr. Butzlaff
restated the City's interest in joint venturing with the District in planning,
budgeting and installing a demonstration project tentatively of the half acre size.
Mr. Butzlaff identified the proposed site and development of a dog park within an
existing park site. The Committee discussed the action items necessary to
continue investigation and consideration of this joint venture.
2. Proposed Legislation Concerning Setting of Rates by Private Water Utilities
The Committee discussed the City's concerns with the lack of parity between the
public and private processes to establish and approve water rates.
3. Water Conservation Resolution and Implementation Plan
The Committee discussed the upcoming activities and decision making process
for establishing water conservation ordinances and rate resolutions to support
these objectives.
4. City Sewer System
The Committee discussed opportunities for the District to provide sewer service
in the near term and into the future.
5. Resource Allocation and Sharing
This item was a recap from previous meetings between the City and the District.
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6. Groundwater Production Facilities
The Committee discussed opportunities for future groundwater development
projects in the area.
7. Miraloma Building Use Agreement
Staff discussed the development of a draft facilities use agreement. The City
expressed their gratitude to the District for making the new administration
building and grounds available for their joint use and expressed their
understanding and expectation to enter into an agreement when one is
developed for their consideration.
ADJOURNMENT
The Ad Hoc Committee adjourned at 2:50 p.m. The next meeting of the Yorba Linda
Water District and City of Placentia Ad Hoc Committee meeting will be determined.
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