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HomeMy WebLinkAbout2009-03-26 - Board of Directors Meeting Agenda Packet r Agenda Packet Regular Meeting of the Board of Directors March 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, March 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. Summerfield, 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 None. 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. 1. Minutes of the Regular Board of Directors Meeting Held March 12, 2009 Recommendation: Approve the minutes as presented. 2. Payment of Bills, Refunds, and Wire Transfers Recommendation: Ratify and authorize disbursements in the amount of $1,008,487.69. 3. Progress Payment No. 10 for the Highland Reservoir Replacement Project Recommendation: Approve Progress Payment No. 10 in the net amount of $287,470.62 to Schuler Engineering Corporation and 10% retention of $31,941.18 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 4. Progress Payment No. 22 for the Lakeview Reservoir Project Recommendation: Approve Progress Payment No. 22 in the net amount of $172,735.27 to SSC Construction, Inc. and 5% retention of $9,091.33 deposited to City National Bank escrow account for construction of the Lakeview Reservoir Project, Job No. 200704. 5. Independent Accountants' Report - Cash Out Audit of Former General Manager Recommendation: Receive and file the Independent Accountants' Report on Applying Agreed Upon Procedures for the Cash Out Audit of Michael A. Payne, former General Manager. 6. Arbitrage Calculation on YLWD Series 2003 Certificates of Participation Recommendation: Receive and file the independent Accountants' Report on Applying Agreed Upon Procedures for the Installment Arbitrage Rebate Report for the 2003 Certificates of Participation. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 7. Risk Management Claims Policy Resolution Recommendation: Adopt Resolution 09-03 Implementing the District's Risk Management Claims Policy. 8. Employee-Employer Relations Resolution Recommendation: Adopt utton 09-04 Implementing Chapter 10, Division 4, Title LO-Me Government Code, State of California, "Local Public Emplo rganizations". 9. Citizen's Advisory Committee Appointments Recommendation: Appoint the 15 members of the Citizens Advisory Committee as recommended by staff. 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. 10. Water Conservation Ordinance Recommendation: This is for information only. No action is required. 11. Status of Hidden Hills Reservoir Project Recommendation: This is for information only. No action is required. 2 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 March 17, 4:00 p.m. 2) Meeting scheduled for April 21, 4:00 p.m. b. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills 1) Minutes of meeting held March 13, 9:00 a.m. 2) Meeting scheduled for April 14, 4:00 p.m. C. Personnel-Risk Management Committee (Armstrong/Collect) Alternate: Summerfield 1) Meeting scheduled for April 13, 4:00 p.m. d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1) Meeting scheduled for April 2, 4:00 p.m. e. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong 1) Minutes of meeting held March 19, 4:00 p.m. 2) Meeting scheduled for April 7, 4:00 p.m. f. MWDOC/OCWD Ad Hoc Committee (Mills/Collett) Alternate: Summerfield 1) Minutes of meeting held March 24, 4:00 p.m. (to be provided at the meeting). 2) Meeting scheduled for May 26, 4:00 p.m. g. City of Placentia Ad Hoc Committee (B eve rageNecch is rel I i ) 1) Meeting to be scheduled. 3 INTERGOVERNMENTAL MEETINGS 14. a. MWDOC Board, March 18 (Staff) b. OCWD Board, March 18 (Staff) C. Yorba Linda City Council, March 17 (Armstrong) d. Yorba Linda Planning Commission, March 25 (Summerfield) BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after March 26, 2009. Agenda is available in the District office prior to meeting. A ril MWDOC/MWD Workshop, Apr 1, 7:30 a.m. Staff OCWD Board, Apr 1, 5:00 .m. Staff Planning-Engineering-Operations Committee, Apr 2, 4:00 .m. Mills/Armstrong Public Information-Technology Committee, Apr 7, 4:00 .m. Collett/Beverage Yorba Linda City Council, Apr 7, 6:30 .m. Mills District Board Meeting, Apr 9, 6:30 .m. Personnel-Risk Management Committee, Apr 13, 4:00 .m. Armstrong/Collett Finance-Accounting Committee, Apr 14, 4:00 .m. Bevera a/Summerfield MWDOC Board, Apr 15, 8:30 a.m. Staff OCWD Board, Apr 15, 5:00 .m. Staff Yorba Linda Planning Commission, Apr 15, 7:00 .m. Collett Executive-Admin-Or anizational Committee, Apr 21, 4:00 .m. Summerfield/Mills Yorba Linda City Council, Apr 21, 6:30 .m. Armstrong District Board Meeting, Apr 23, 8:30 a.m. Yorba Linda Planning Commission, Apr 29, 7:00 .m. Summerfield 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. Orange County Water Summit - May 15, 2009 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 April 9, 2009, at 6:30 p.m., at 1717 E. Miraloma Avenue, Placentia, CA 92870. 4 Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's Internet website accessible at 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 7 9 10 8 9 10 11M 13 14 8 9 10 11M 13 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 21- 23 24 22 23~ x 27 28 22. 24 25- 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 9 100 12 13 12 13 14 15 16 17 18 10 11 12 13 15 16 14 15 16 17 18 19 20 19 20 21 22. 24 25 17 18, X19 rr2x 'a 23 21 22 23 24 26 27 N 2- 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 8 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 7i 5 4 5 6 7- 9 10 8 9 10 11 13 14 6 7 8 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 25 27 28 20 21 22 23 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 14, 2009 - ACWA Fall Conference, San Diego Rev. 12/30/08 Dec 9-11, 2009 - CRWUA 2008 Annual Conference, Las Vegas APPROVED BY THE BOARD OF DIRECTORS ITEM NO. OFTHE YORBA LINDA WATER DISTRICT MAR 2 6 2009 MINUTES OF THE YORBA LINDA WATER DISTRICT BY BOARD OF DIRECTORS REGULAR MEETING March 12, 2009 f3M~~2~ a 6--0 The March 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 Pat Grady, Assistant General Manager William R. Mills, Vice President Art Kidman, General Counsel Paul R. Armstrong Steve Conklin, Engineering Manager Michael J. Beverage Lee Cory, Operations Manager Ric Collett Diane Cyganik, Finance Director Gina Knight, HR Manager Annie Alexander, Executive Secretary ADDITIONS/DELETIONS TO THE AGENDA Mr. Grady requested to add an item to the agenda as there was a need to take immediate action and the item did not come to the attention of staff until after the agenda was posted. The item is a request to authorize the President to execute correspondence to the State Water Resources Control Board. On a motion by Director Armstrong, seconded by Director Collett, the Board voted 5-0 to add the item to the agenda as Item No. 10a. PUBLIC COMMENTS None. SPECIAL RECOGNITION None. CONSENT CALENDAR On a motion by Director Mills, seconded by Director Collett, the Board voted 5-0 to approve the Consent Calendar. Director Beverage abstained from voting on Check No. 51118 of Item No. 2 as the vendor was a source of income. 1. Minutes of the Regular Board of Directors Meeting Held February 26, 2009 Recommendation: Approve the minutes as presented. 2. Payment of Bills, Refunds, and Wire Transfers Recommendation: Ratify and authorize disbursements in the amount of $1,016,441.50. ACTION CALENDAR 3. Engineering Services for the Hidden Hills Reservoir Project Mr. Conklin explained that the District requested Carollo Engineers to submit a proposal for extending their engineering support services into the construction phase for the Hidden Hills Reservoir Project. Staff has reviewed the proposal and recommends approval of an amendment to the Professional Services Agreement with Carollo. On a motion Director Collett, seconded by Director Mills, the Board voted 5-0 to authorize an amendment to the Professional Services Agreement with Carollo Engineers, in the amount of $267,500 for engineering support services for the Hidden Hills Reservoir Project. 4. Construction Management and Inspection for the Hidden Hills Reservoir Project Mr. Conklin explained that the District recently solicited proposals for construction management and inspection services for the Hidden Hills Reservoir Project from 5 qualified firms. Each proposal was evaluated and scored before reviewing the fee for services. Staff recommends the bid be awarded to Butier. Mr. Conklin then responded to questions from the Board. On a motion by Director Mills, seconded by Director Armstrong, the Board voted 5-0 to authorize the President and Secretary to execute a Professional Services Agreement with Butler, in the amount of $348,520 for Construction Management and Inspection Services for the Hidden Hills Reservoir Project. 5. Approval of Easement Agreement for Hidden Hills Reservoir Project Director Beverage announced the he would need to recuse himself from this item as the easement was with a company who was a source of income. Director Beverage excused himself from the meeting at this time. Mr. Conklin explained that the District had negotiated an agreement with Shappell Industries for a Temporary Construction and Permanent Access Easement needed for the Hidden Hills Reservoir Project. The District will reseed the area following construction to avoid erosion. On a motion by Director Mills, seconded by Director Armstrong, the Board voted 4-0 to approve the Temporary Construction Easement and Permanent Access Easement Agreement with Shapell Industries and authorize the Secretary to execute and record the agreement document. Director Beverage rejoined the meeting at this time. 6. Award of Construction Contract for the Hidden Hills Reservoir Project Mr. Conklin explained that the District recently solicited bids for a construction contract for the Hidden Hills Reservoir Project. A total of 16 bids were received. Review of the bid documents from the lowest bidder, Superior Construction Specialties, indicated that the bid was non-responsive. Staff recommends award of the contract to the second lowest bidder, Pacific Hydrotech Corporation. 2 On a motion by Director Armstrong, seconded by Director Collett, the Board voted 5-0 to award a contract for construction of the Hidden Hills Reservoir Project to Pacific Hydrotech Corporation for the total bid price of $5,012,458. 7. Approval of Change Order No. 2 for Highland Reservoir Replacement Project Mr. Conklin explained that Schuler Engineering submitted Change Order No. 2 due to modifications encountered during the course of construction to date. The Change Order includes credits due to the District as well as added work tasks. Mr. Conklin then responded to questions from the Board. On a motion by Director Armstrong, seconded by Director Mills, the Board voted 5-0 to approve Change Order No. 2 in the amount of $151,926.55 and 29 additional calendar days to Schuler Engineering Corporation for construction of the Highland Reservoir Replacement Project, Job No. 200309. 8. Purchase of Mobile Equipment Mr. Cory explained that staff had researched and tested equipment to help provide water to customers during extended power outages and to augment system capabilities during emergencies. Staff is recommending purchasing a mobile generator and a high head mobile pump from Godwin Pump Company. Mr. Cory then responded to questions form the Board. On a motion by Director Beverage, seconded by Director Collett, the Board voted 5-0 to authorize the General Manager to execute a Purchase Order with Godwin Pumps in the amount not to exceed $138,247.10 to purchase the Godwin Dri- Prime Model HLSM Diesel Pumpset and the Godwin Power Model GHP185kw-R Diesel Generator. 9. Temporary Cessation of Personnel Recruitments and Promotions Mr. Grady explained that this matter was being addressed at this time because of the current economic conditions. The District currently has 84 authorized positions, 10 of which are unfilled. Of these 10, only 3 positions (Senior Project Manager and Maintenance Distribution Operator II and III) were being considered for full time employment. Staff is recommending that a temporary cessation of full time recruitments and promotions be instituted through the end of the current fiscal year and to offer limited term employment to the prospective candidate for the Senior Project Manager position. Staff will also consult with the Operations and Human Resources Managers before taking further action on the Maintenance Distribution Operator positions. On a motion by Director Collett, seconded by Director Armstrong, the Board voted 3-2 with Directors Beverage and Mills voting No to direct the General Manager to institute a temporary cessation of personnel recruitments and promotions of full time employees through the end of the Fiscal Year 2008109 with further review and consideration within the proposed budget development, review and approval process. 10. Reschedule Board Meetings for Second Quarter of 2009 Mr. Grady explained that some public representatives had requested a continuation of holding one evening meeting each month. Staff is recommending that the Board continue this practice through June. 3 President Summerfield opened the meeting to public comments. Mark Schock spoke regarding his appreciation for the evening meetings. There were no other public comments. On a motion by Director Collett, seconded by Director Mills, the Board voted 3-2 with Directors Armstrong and Beverage voting No to approve and authorize the General Manager to schedule the Board meetings of April 9th, May 14th and June 11th from 8:30 a.m. to 6:30 p.m. 10a. Authorize the President to Execute Correspondence to the State Water Resources Control Board Mr. Grady explained that Townsend Public Affairs had contacted staff requesting that correspondence be remitted to the State Water Resources Control Board regarding the selection criteria for distribution of federal stimulus funds. Mr. Grady then responded to questions from the Board. Brett Barbra, MWDOC Director, spoke regarding MWDOC's plans to apply for funding for a recycled wastewater project. On a motion by Director Beverage, seconded by Director Mills, the Board voted 4-1 with Director Armstrong voting No to authorize the President to execute the correspondence to the State Water Resources Control Board. DISCUSSION ITEMS 11. Status of Hidden Hills Reservoir Project Mr. Conklin reported that work was continuing on the project. Staff expected to receive the required permits from the State in April. Staff will conduct meetings with the local homeowners before construction begins. The project is expected to be completed by July 2010. REPORTS, INFORMATION ITEMS AND COMMENTS 12. a. President's Report There was no report. b. Directors' Reports Director Mills reported on his attendance at the Water Education Foundation's Lower Colorado River Tour. Director Armstrong commented on a story of a man who used his own pumper truck for fire protection during the Freeway Complex Fire. C. General Manager's Report Mr. Grady reported in Mr. Vecchiarelli's absence and stated that 2 applications had been received for the Citizen's Advisory Committee. Announcements were published in the Orange County Register, Yorba Linda Star, and Placentia News-Times. The application deadline is March 18th and appointments will be made at the March 26th Board meeting. The 4 i Board will be holding a strategic planning workshop on March 23rd and Mr. Grady requested that the planning worksheets be returned to Staff at the Board's earliest convenience. A water conservation ordinance will be presented to the Executive-Administrative-Organizational and Public Information-Techology Committees for review. The first draft of the ordinance will be presented to the Board on March 26th. A public hearing regarding adoption of the ordinance will be held April 9d' with adoption by the Board scheduled April 23rd. Mr. Grady also commended Mr. Conklin for his work on the Hidden Hills Reservoir Project. d. General Counsel's Report There was no report. COMMITTEE REPORTS 13. a. Executive-Administrative-Organizational Committee (Summerfield/Mills) Altemate: Collett 1) Meeting scheduled for March 17, 8:00 a.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) Minutes of meeting held March 9, 4:00 were provided at the meeting. Directors Armstrong and Collett attended. Items discussed during the meeting were as follows: temporary cessation of personnel recruitments and promotions; risk management claims policy; and status of recruitments and risk management activities. 2) Meeting scheduled for April 13, 4:00 p.m. d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1) Minutes of meeting held March 5 were provided in the agenda packet. Directors Mills and Armstrong attended. Items discussed during the meeting were as follows: engineering services, construction management, approval of Easement Agreement, and award of Construction Contract for the Hidden Hills Reservoir Project; approval of Change Order No. 2 for the Highland Reservoir Replacement Project; purchase of Emergency Mobile Equipment; review of Radio Read Meter Replacement Project; monthly Groundwater Production, Purchased Water, Preventative Maintenance Program reports; monthly MWDOC Manager and OC Groundwater Producers meeting summary reports; and status of Capital Projects in progress. 2) Meeting scheduled for April 2, 4:00 p.m. 5 e. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong 1) Meeting scheduled for March 3, 4:00 p.m. was canceled. 2) Meeting scheduled for March 19, 4:00 p.m. 3) Meeting scheduled for April 7, 4:00 p.m. f. MWDOC/OCWD Ad Hoc Committee (Mills/Collett) Alternate: Summenre/d 1) Meeting scheduled for March 24, 4:00 p.m. g. City of Placentia Ad Hoc Committee (BeverageNecch is rell i ) 1) Meeting to be scheduled. INTERGOVERNMENTAL MEETINGS 14. a. MWDOC/MWD Workshop, Mar 4 (Staff) Staff did not attend. b. OCWD Board, Mar4 (Staff) Staff did not attend. C. Yorba Linda City Council, Mar 3 (Armstrong) Director Armstrong did not attend. d. Yorba Linda Planning Commission, Mar 11 (Collett) Director Collett did not attend. BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after March 12, 2009. Agenda is available in the District office prior to meeting. March Finance-Accounting Committee, Mar 13, 9:00 a.m. Bevera a/Summerfield Executive-Admin-Or anizational Committee, Mar 17, 8:00 a.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 Public Information-Technology Committee, Mar 19, 4:00 .m. Collett/Beverage 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. I 6 A rill MWDOC/MWD Workshop, Apr 1, 7:30 a.m. Staff OCWD Board, Apr 1, 5:00 .m. Staff Planning-Engineering-Operations Committee, Apr 2, 4:00 .m. Mills/Armstrong Public Information-Technology Committee, Apr 7, 4:00 .m. Collett/Beverage Yorba Linda City Council, Apr 7, 6:30 .m. Mills District Board Meeting, Apr 9, 6:30 .m. Personnel-Risk Management Committee, Apr 13, 4:00 .m. Armstron /Collett Finance-Accounting Committee, Apr 14, 4:00 .m. Bevera a/Summerfield MWDOC Board, Apr 15, 8:30 a.m. Staff OCWD Board, Apr 15,5:00 .m. Staff Yorba Linda Planning Commission, Apr 15, 7:00 .m. Collett Executive-Admin-Or anizational Committee, Apr 21, 4:00 .m. Summerfield/Mills Yorba Linda City Council, Apr 21, 6:30 .m. Armstrong District Board Meeting, Apr 23, 8:30 a.m. Yorba Linda Planning Commission, Apr 29, 7:00 .m. Summerfield CONFERENCES AND SEMINARS 15. Orange County LAFCO Stakeholder Summit - March 27, 2009 No Directors were interested in attending. Brett Barbre, MWDOC Director, spoke regarding the summit and encouraged staff to attend the MWD Board meeting in April. ADJOURNMENT On a motion by Director Beverage, seconded by Director Mills, the meeting adjourned at 7:56 p.m. The next meeting of the Board of Directors is scheduled for March 26, 2009, at 8:30 a.m. 7 ITEM NO. a AGENDA REPORT APPROVED BY THE BOARD OF DIRECTORS Board Meeting Date: March 26, 2009 OF THE YORBA LINDA WATER DISTRICT To: Board of Directors MAR 2 6 2009 From: Kenneth R. Vecchiarelli, General Manager gyL S o Staff Contact: Diane Cyganik, Finance Director 52M/II26 2C f/l3S7rti,~~1' 57/,7.2l0 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: $1,008,487.69 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 $9,343.35 to Parsons for Job No. 200704 February 2009 services rendered; a wire of $9,071.33 to City National Bank for Job 200704 retention payment; a check of $287,470.62 to Schuler Engineering for Job 200309 progress payment; and, a check of $172,735.27 to SSC Construction for Job 200704 progress payment. The balance of $297,058.24 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 $775,678.81; payroll No. 5 total is $232,808.88; and, the disbursements of this agenda report are $1,008,487.69. A summary of the checks is as follows: Pavables: Computer Checks Check Nos. 51160 - 51254 Payroll #5: Manual Checks Check Nos. 4260 - 4265 Void Checks Check Nos. 4266 - 4268 The disbursement total for the current period is $1,008,487.69, distributed as follows: Water $ 954,982.69 Sewer $ 25,766.68 ID #1 $ 0.00 ID #2 $ 27,738.32 TOTAL $1,008,487.69 I '69'L917'900'1$ 10 junowe aql ul sluawesingslp ezuoylne pue A4l;ej sjo;oajlQ;o pjeog 9411841 :NOIIV(IN3WWO33N JAMS -A14luow-iwes sia;suej1 ajim pue spunjaj `slllq sanadde sao;oajld;o pjeog ayl :(S)NOIIOV (3NVO8 1NVA3132121011Id March 26, 2009 CHECK NUMBERS 51160 TO 51254 $ 757,264.13 WIRES: W-32609 Parsons $ 9,343.35 W-32609A City National Bank $ 9.071.33 $ 18,414.68 TOTAL OF CHECKS AND WIRES: $ 775,678.81 PAYROLL NO. 5: CHECK NUMBERS: 4260 TO 4268 $ 232,808.88 TOTAL: $ 1,008,487.69 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MARCH 26, 2009 TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS AS FOLLOWS: WATER $ 954,982.69 SEWER $ 25,766.68 ID # 1 $ 0.00 ID # 2 $ 27,738.32 TOTAL: $1,008,487.69 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 03-13-09 THRU 03-26-09 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 51160 03-26-09 03-26-09 1-800-CONFERENCE(R) 88.53 51161 03-26-09 03-26-09 ABIGAIL ABBOTT STAFFING SVC 7,285.90 51162 03-26-09 03-26-09 ADVANCED SCHOOL OF DRIVING 5,985.00 51253 03-26-09 03-26-09 ALEJANDRO VALDA ARANA 6.99 51163 03-26-09 03-26-09 ANAHEIM WHEEL & TIRE 795.00 51164 03-26-09 03-26-09 ASSOCIATED LABORATORIES 2,334.10 51165 03-26-09 03-26-09 AT & T MOBILITY 1,276.92 51166 03-26-09 03-26-09 AT&T 45.25 51167 03-26-09 03-26-09 B & M LAWN & GARDEN 44.59 51168 03-26-09 03-26-09 BELL PIPE & SUPPLY 31.25 51169 03-26-09 03-26-09 BERGE'S GOVERNOR SERVICE 1,281.29 51170 03-26-09 03-26-09 BUTIER ENGINEERING INC 13,580.00 51171 03-26-09 03-26-09 C. WELLS PIPELINE 1,567.77 51172 03-26-09 03-26-09 CADET UNIFORM SERVICE 981.17 51173 03-26-09 03-26-09 CAROLLO ENGINEERS 23,842.69 51174 03-26-09 03-26-09 CDW-G GOVERNMENT, INC 1,102.57 51175 03-26-09 03-26-09 CERIDIAN BENEFITS SERVICES 270.00 51176 03-26-09 03-26-09 CITIZEN'S BUSINESS BANK 31,941.18 32609A 03-26-09 03-26-09 CITY NATIONAL BANK 9,071.33 51177 03-26-09 03-26-09 CITY OF ANAHEIM 11,139.30 51178 03-26-09 03-26-09 CITY OF PLACENTIA 3,429.58 51179 03-26-09 03-26-09 CLA-VAL CO. 409.92 51180 03-26-09 03-26-09 CLINICAL LAB. OF SAN BERN. 2,645.00 51181 03-26-09 03-26-09 COASTLINE EQUIPMENT 255.82 51182 03-26-09 03-26-09 COGSDALE SERVICES CORPORATION 16,400.75 51183 03-26-09 03-26-09 COM SER CO INC. 106.94 51184 03-26-09 03-26-09 COMMWORLD ORANGE COAST 1,396.55 51185 03-26-09 03-26-09 COOPERATIVE PURCHASERS 2,657.76 51186 03-26-09 03-26-09 CPS HUMAN RESOURCE SERVICES 204.00 51187 03-26-09 03-26-09 CULLIGAN 1,811.30 51188 03-26-09 03-26-09 D. R. CRISKE TRUCKING 700.38 51189 03-26-09 03-26-09 DAN COPP CRUSHING CORP. 97.00 51190 03-26-09 03-26-09 DANGELO CO. 2,701.62 51191 03-26-09 03-26-09 DATALOK ORANGE COUNTY 289.69 51192 03-26-09 03-26-09 DCSE, INC. 10,563.34 51193 03-26-09 03-26-09 DELL MARKETING L.P. 652.57 51194 03-26-09 03-26-09 DELTA DENTAL - PMI 296.32 51195 03-26-09 03-26-09 DIANE CYGANIK 110.00 51196 03-26-09 03-26-09 DON WOLF & ASSOCIATES INC. 217.99 51197 03-26-09 03-26-09 DORAN BUSINESS PRODUCTS 23.67 51198 03-26-09 03-26-09 EISEL ENTERPRISES, INC. 50.43 51199 03-26-09 03-26-09 ENERGY ENVIRONMENTAL SOLN, INC 2,200.00 51200 03-26-09 03-26-09 FASTENAL COMPANY 355.74 51201 03-26-09 03-26-09 FEDERAL-EXPRESS 136.81 51202 03-26-09 03-26-09 FIREMASTER-INLAND REGION 2,129.13 51203 03-26-09 03-26-09 FULLER TRUCK ACCESSORIES 735.18 51204 03-26-09 03-26-09 GENERAL PUMP CO., INC. 23,300.00 51205 03-26-09 03-26-09 GRAYBAR ELECTRIC CO 963.76 51206 03-26-09 03-26-09 HAAKER EQUIPMENT CO. 9,461.34 51207 03-26-09 03-26-09 HACH COMPANY 301.65 51208 03-26-09 03-26-09 HSBC BUSINESS SOLUTIONS 484.05 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 03-13-09 THRU 03-26-09 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 51209 03-26-09 03-26-09 INFOSEND 5,723.81 51210 03-26-09 03-26-09 KB DESIGN 173.48 51211 03-26-09 03-26-09 LINCOLN NATIONAL LIFE 1,884.26 51212 03-26-09 03-26-09 Mc CROMETER INC 714.82 51213 03-26-09 03-26-09 MC MASTER-CARR SUPPLY CO. 730.66 51214 03-26-09 03-26-09 McCORMICK,KIDMAN & BEHRENS LLP 42,640.12 51215 03-26-09 03-26-09 MINUTEMAN PRESS 563.63 51216 03-26-09 03-26-09 MORR-IS TESTED INC 1,235.00 51217 03-26-09 03-26-09 NEXTEL OF CALIFORNIA 1,687.04 51218 03-26-09 03-26-09 NICKEY PETROLEUM CO 2,747.69 51219 03-26-09 03-26-09 NORMAN A. TRAUB ASSOCIATES 2,200.00 51220 03-26-09 03-26-09 OFFICE SOLUTIONS 943.18 51221 03-26-09 03-26-09 OMNI WESTERN INC 107.44 51222 03-26-09 03-26-09 ORVAC ELECTRONICS 115.12 W32609 03-26-09 03-26-09 PARSONS ENGINEERING SCIENCE 9,343.35 51223 03-26-09 03-26-09 PARTS SOURCE ANAHEIM 140.94 51224 03-26-09 03-26-09 PETE'S PARTS & ACCESSORIES 758.60 51225 03-26-09 03-26-09 PETE'S ROAD SERVICE INC 198.87 51226 03-26-09 03-26-09 PLACENTIA DISPOSAL 499.36 51227 03-26-09 03-26-09 PRAXAIR DISTRIBUTION 3,736.70 51228 03-26-09 03-26-09 R J SERVICES, INC 3,608.75 51254 03-26-09 03-26-09 RAYMOND DEL RIO 19.22 51229 03-26-09 03-26-09 ROB KNAGGS 800.00 51230 03-26-09 03-26-09 SAFETY-KLEEN CORP. 323.69 51231 03-26-09 03-26-09 SCHULER ENGINEERING CORP. 287,470.62 51232 03-26-09 03-26-09 SECURITY SOLUTIONS 350.00 51233 03-26-09 03-26-09 SHEA HOMES 116.90 51234 03-26-09 03-26-09 SHRED-IT LOS ANGELES 65.00 51235 03-26-09 03-26-09 SOUTHERN CALIF EDISON CO. 157.87 51236 03-26-09 03-26-09 SOUTHERN CALIF GAS CO. 11,363.47 51237 03-26-09 03-26-09 SSC CONSTRUCTION, INC 172,735.27 51238 03-26-09 03-26-09 ST.JOSEPH HERITAGE HEALTHCARE 265.00 51239 03-26-09 03-26-09 STACY BAVOL/PETTY CASH 521.74 51240 03-26-09 03-26-09 STAPLES BUSINESS ADVANTAGE 556.53 51241 03-26-09 03-26-09 TETRA TECH, ISG #1 3,548.32 51242 03-26-09 03-26-09 UNITED INDUSTRIES 575.83 51243 03-26-09 03-26-09 UNITED STATES PLASTIC CORP 116.83 51244 03-26-09 03-26-09 VALVERDE CONSTRUCTION, INC. 1,574.13 51245 03-26-09 03-26-09 VILLAGE NURSERIES 72.08 51246 03-26-09 03-26-09 WATER EDUCATION FOUNDATION 60.00 51247 03-26-09 03-26-09 WELLS SUPPLY CO 13,738.24 51248 03-26-09 03-26-09 WEST COAST SAFETY SUPPLY CO 1,290.94 51249 03-26-09 03-26-09 WESTSIDE BUILDING MATERIAL 727.05 51250 03-26-09 03-26-09 WILLIAM MILLS 215.70 51251 03-26-09 03-26-09 XEROX CORPORATION 1,187.73 51252 03-26-09 03-26-09 ZEP MANUFACTURING 314.71 775,678.81 I ITEM NO. 3 AGENDA REPORT BY THE OF Board Meeting Date: March 26, 2009 AOFTHEYOA BALINDOAWATERDST ICTS To: Board of Directors MAR 2 6 2009 From: Ken Vecchiarelli, General Manager BY 13M QC 6-d Staff Contact: Steve Conklin, Engineering Manager Leon de los Reyes, Water Quality Engineer Reviewed by General Counsel: No Budgeted: Yes Total Budget: $ 11.2 M Funding Source: Water Revenue Bond CEQA Account No: 102-2700 Job No: 200309 Compliance: Mitigated Neg. Dec. Estimated Costs: $ 11.2 M Dept: Eng Subject: Progress Payment No. 10 for the Highland Reservoir Replacement Project SUMMARY: The Board of Directors awarded a contract to Schuler Engineering for construction of the Highland Reservoir Replacement Project on April 10, 2008 and approved a project construction budget of $11.2M on May 15, 2008. Submitted for consideration is construction Progress Payment No. 10. DISCUSSION: In accordance with the contract documents, Schuler Engineering Corporation submitted a request for Progress Payment No. 10 for the period ending February 28, 2009. This progress pay request includes small percentage payments for shoring and sheet bracing, mobilization including project related office expenses and submittals, surface water pollution prevention efforts, and 44% for previously completed change order related tasks. During the month of February, the project reached a significant milestone. Construction of the temporary tanks, yard piping, and integration into the SCADA (supervisory control and data acquisition) system, has been completed and placed into operation. In addition, the existing Highland reservoir was drained, existing inlet/outlet pipelines were cut, plugged, and abandoned, and the reservoir was prepared for demolition. The status of the construction contract with Schuler Engineering is as follows: • Original contract amount was $9,049,346 and 730 calendar days starting June 2, 2008. • Authorized change orders to date total $335,575.44 (3.71% of the original contract amount) and 39 calendar days (5.34% of original contract calendar days) • The revised construction contract amount and contract calendar days are $9,384,921.44, and 769 days respectively. • If approved, Progress Payment No. 10 is $319,411.80 (3.4% of the revised contract amount) less 10% retention of $31,941.18 for a net payment of $287,470.62 • If approved, total progress payments to date including retentions are $3,996,156.87 (42.6% of the revised contract amount). • As of February 28, 2009, 272 calendar days were used (35.4% of the revised contract calendar days). Staff and Carollo Engineers, the District's construction management consultant, reviewed the progress payment request and recommend payment. A copy of Progress Payment No. 10 is attached for your information. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors awarded a construction contract to Schuler Engineering on April 10, 2008 in the amount of $9,049,346 for construction of the project. On May 15, 2008, the Board approved execution of a Professional Service Agreement with Carollo Engineers in the amount of $605,856 for engineering support services, construction management and backup inspection services; a Professional Service Agreement with Leighton Consulting Engineers in the amount of $86,200 for geotechnical services, soils, concrete and materials testing; a Professional Service Agreement with BonTerra Consulting in the amount of $22,251 for environmental compliance services; and approved the construction budget in the amount of $11,200,000 for construction of the Highland Reservoir Replacement Project. The Board has approved 9 progress payments and 2 change orders to date, the most recent of which was approved on February 12, 2009, and March 12, 2009 respectively. STAFF RECOMMENDATION: Staff recommends the Board of Directors approve Progress Payment No. 10 in the net amount of $287,470.62 to Schuler Engineering Corporation and 10% retention of $31,941.18 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. I YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Highland Reservoir PROGRESS PAY REQUEST NO. 10 LOCATION Yorba Linda PROJECT NO. J- PAGE 1 OF 1 PAGES 200309 _ CONTRACTOR Schuler Engineering DATE Feb. 28,2009 ORIGINAL CONTRACT AMOUNT: $ 9,049,346.00 AUTHORIZED CHANGE ORDERS: $ 335,675.44 REVISED CONTRACT AMOUNT: $ 9,384 921.44 PROGRESS PAY ESTIMATE FOR PERIOD Febnwrv 1, 2009 TO Pebnm 28, 2009 PREVIOUS THIS MONTH TO DATE VALUE OF WORK COMPLETED $ 3,497,423.58 $ 176 180.50 $ 3,675,604.08 CHANGE ORDER WORK COMPLETED Is 179 321.49 $ 141 231.30 320 552.79 TOTAL VALUE OF WORK COMPLETED IS 3,676,745.07 $ 319 411.80 $ 3,995,156.87 LESS RETENTION 10% $ 399615.69 LESS OTHER DEDUCTIONS $ AMOUNT DUE THIS ESTIMATE $ 3,596,541.18 LESS AMOUNT PREVIOUSLY PAID 3 3_111.070.56 BALANCE DUE THIS ESTIMATE is 287 470.62 NOTICE TO PROCEED June 2.2008 COMPLETION TIME 730 CALENDAR DAYS APPROVED TIME EXTENSIONS 39 CALENDAR DAYS TOTAL CONTRACT TIME 769 CALENDAR DAYS TIME EXPENDED TO DATE 272 CALENDAR DAYS TIME REMAINING 497 CALENDAR DAYS REQUESTED BY: . DATE: ~CHULER ENGINEERIN CTOR Chas Wick APPROVED BY: Z-V vv'~ DATE: - CAR L NINER'S-REPRESENTATIVE Brian n APPROVED BY., DATE: D YLWD- OWNER Steve Conklin ITEM NO. AGENDA REPORT Board Meeting Date: March 26, 2009 APPROVED BY THE BOARD OF DIRECTORS OFTHEYORBA LINDA WATER DISTRICT To: Board of Directors MAR 2 6 2009 From: Ken Vecchiarelli, General Manager BY Staff Contact: Steve Conklin, Engineering Manager VW/RC go Joe Polimino, Project Engineer Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 11.5 Funding Source: District and Developer Funds CEQA Account No: 101-2700 Job No: 200704 Compliance: Mitigated Neg. Dec. Estimated Costs: $ 11.5 M Dept: Eng Subject: Progress Payment No. 22 for the Lakeview Reservoir Project SUMMARY: On January 25, 2007, the District Board of Directors authorized the execution of an agreement with SSC Construction, Inc. (SSC) for construction of an 8-million gallon underground concrete reservoir, piping and appurtenances. The project also includes demolition of the existing Bastanchury Booster Pump Station and Reservoir (two steel storage tanks). The site is located north of Bastanchury Road off the new Lakeview Avenue extension, north of the Hover Development and south of Vista Del Verde's Village 4. When completed, the project will increase operational, fire and emergency storage capacity, retain better water quality through improved circulation and improve reliability of the water system. DISCUSSION: In accordance with the contract documents, SSC submitted a request for Progress Payment No. 22, in the amount of $181,826.60 for completed work through February 28, 2009. During this period, SSC continued to backfill the reservoir site and install miscellaneous drain piping into catch basins. Fine grading has also started for the access road sub-grade. The wrought iron fence installation along the south perimeter retaining wall has begun and electrical installations throughout the site continue. The status of the construction contract with SSC Construction, Inc. is as follows: • The current contract is $11,006,911.61 and 642 calendar days starting June 18, 2007. • If approved, Progress Payment No. 22 is $181,826.60 (1.7% of the total contract amount), less 5% retention of $9,091.33 for a net payment of $172,735.27. • Total payments to date including retention are $10,423,908.37 (94.7% of the total contract amount). • As of February 28, 2009, 622 calendar days were used (96.9% of the contract time). Staff and Butier, the District's construction manager for the project, have reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 22 is attached for your reference. PRIOR RELEVANT BOARD ACTION(S): On January 25, 2007, the District Board of Directors approved and awarded a construction contract with SSC Construction, Inc. in the amount of $10,489,500 for construction of an 8 million gallon underground concrete reservoir, piping and appurtenances, and demolition of the existing Bastanchury Booster Pump Station and Reservoir. On April 10, 2008, the District Board of Directors approved Change Order No. 1 increasing the total contract amount to $10,639,500 and total contract calendar days to 547. On June 30, 2008, staff approved Change Order No. 2 in the net amount of $2,887.92 increasing the total contract to $10,642,387.92. On July 10, 2008, the Board of Directors approved Change Order No. 3 in the amount of $55,393.45 and an additional 27 calendar days to be added to the contract. On February 12, 2009, the Board of Directors approved Change Order No. 4 in the amount of $167,113.53 and an additional 49 calendar days to be added to the contract. At the same meeting, the Board of Directors also approved Change Order No. 5 in the amount of $142,016.71 and an additional 19 calendar days to be added to the contract. The Board has approved twenty one progress payments to date for this project, the most recent of which was approved on February 12, 2009. STAFF RECOMMENDATION: Approve Progress Payment No. 22 in the net amount of $172,735.27 to SSC Construction, Inc. and 5% retention of $9,091.33 deposited to City National Bank escrow account, for construction of the Lakeview Reservoir Project, Job No. 200704. I YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Lakeview Reservoir Project PROGRESS PAY REQUEST NO. 22 LOCATION Yorba Linda, CA PROJECT NO. 200704 PAGE 1 OF 1 PAGES CONTRACTOR SSC Construction. Inc. DATE 2/28/09 ORIGINAL CONTRACT AMOUNT: E 10,488.600.00 AUTHORIZED CHANGE ORDERS: 617,411.61 REVISED CONTRACT AMOUNT: 11 008 811.61 PROGRESS PAY ESTIMATE FOR PERIOD Fe6ruagr 1.2009 TO Febm arr 28 2008 PREVIOUS THS MONTH TO DATE VALLE OF WORK COMPLETED $ 10 33800A0 $ 91M.00 $ 10,125A27.00 CHANGE ORDER WORK COMPLETED $ 208 1.37 $ 90000.00 298 81.37 TOTAL VALUE OF WORK COMPLETED $ 10 42 081.77 $ 181 26.60 10 23 08.37 LESS RETENTION 5% 521195.42 LESS OTHER DEDUCTIONS 5o% of Eiedroric Wire Fees 160.00 NET EARNED TO DATE $ 99 .95 LESS AMOUNT PREVIOUSLY PAID 9729,8'27.68 BALANCE DUE THIS ESTIMATE $ 172,73527 NOTICE TO PROCEED June 18, 2007 COMPLETION TIME 487 CALENDAR DAYS I i APPROVED TIME EXTENSIONS 166 CALENDAR DAYS TOTAL CONTRACT TIME 842 CALENDAR DAYS TIME EXPENDED TO DATE 822 CALENDAR DAYS TIME REMAINING 20 CALENDAR DAYS REQUESTED BY: DATE: Br nt Bro er, {Asst. Controller, SS CCeonnstmcttIon Inc. c] APPROVED BY: DATE: ~I (o ~b 7 John wfilsonh nstructl agar, Butler Engineering APPROVED B DATE: O Kenneth R. Vexhlarelll, General Manager, YLWD ITEM NO. j' AGENDA REPORT y/ BYT Or R00FDIpE~T6RS Board Meeting Date: March 26, 2009 OF THE YORBA LINDA WATER DISTRICT To: Board of Directors MAR 2 6 2009 From: Ken Vecchiarelli, General Manager gy ~<A' T31"IRC S-o Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: No Total Budget: Funding Source: CEQA Account No: 1-33-780 Job No: Compliance: N/A Estimated Costs: $ 4,500 Dept: Bus Subject: Independent Accountants' Report - Cash-Out Audit of Former General Manager SUMMARY: On December 30, 2008, Michael A. Payne, the District's General Manager retired after 35 years of service to the District. Mr. Payne had served in the capacity of General Manger for a period of 5 years. When the District's former General Manager retired, William J. Robertson, the Board established a verbal policy to conduct special cash-out audits for employees dealing directly with finances of the District to insure sound financial management and accountability. DISCUSSION: Staff had requested an engagement with Diehl, Evans & Company, LLP, the District's auditors, to conduct a special cash-out audit as of December 31, 2008. The audit was not conducted until the end of January 2009 due to the timing of the receipt of the District's December 2008 bank statements, investment reports and credit card statements to assist in evaluating the accountability of cash and investments as well as the final compensation payment in conjunction with the retirement of Mr. Payne. A report by Mr. Nitin Patel, CPA of Diehl, Evans & Company was presented to the Finance- Accounting Committee on March 13, 2009 for their review and also to answer any potential questions. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors ordered a special cash-out audit in December 2003 when former General Manager William J. Robertson retired and also an audit in December 2005 when former District Auditor Beverly Meza retired. STAFF RECOMMENDATION: That the Board of Directors receive and file the Independent Accountants' Report on Applying Agreed-Upon Procedures for the Cash-Out Audit of Michael A. Payne, former General Manager. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this item at its meeting held March 13, 2009 and supports staffs recommendation. © DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS 6r CONSULTANTS MICHAEL R LUDN, CPA A PARTNGRSH R NCLUDMG ACCOUNTANCY CORPORATIONS CRAIG W. SPRAKER CPA NM P. PATEL. CPA ROBERT H. CALLANAN. CPA 5 CORPORATE PARK, SUITE 100 'PHILIP H. HOLTKAMP. CPA IRVINE, CALIFORNIA 92606-5165 'THOMAS M. PCRLOWSKI. CPA 'HARVEY L SCHROEDER. EPA (949) 799-0600 P FAX (949) 399-0610 KRNNElH R. A/4E4. CPR WW Aiehle .Cam 'WRLIAM C. PENR, CPA February 10, 2009 'APROPEWONALC RATON INDEPENDENT ACCOUNTANTS'REPORT ON APPLYING AGREED-UPON PROCEDURES Board of Directors Yorba Linda Water District Placentia, California We have performed the procedures enumerated below, which were agreed to by the Yorba Linda Water District (the District), solely to assist District management with respect of evaluating the accountability for cash and investments and the final compensation payment in conjunction with the retirement of the General Manager as of December 30, 2008. The District's management is responsible for the accounting records. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the management of the District. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Our procedures and findings are as follows: 1. We reviewed the reconciliations as of December 31, 2008 on the following cash and investment accounts: Account Account Reconciled General Ledger Description Number Balance Balance Difference Checking Account - Wells Fargo Bank 415-9413053 $1,137,803.20 $ 1,140,561.93 $2,758.73(A) Money Market Account - Wells Fargo Bank 858-6281886 178,254.07 178,254.07 Investment - Wells Capital Management 18611500 17,677,069.00 17,677,069.00 US Bank/Revenue Bonds - COP 2003 94676700 0.61 0.61 US Bank/Revenue Bonds - COP 2003 94676702 0.01 0.01 US Bank/Revenue Bonds - COP 2008 121037000 10,480.52 10,480.52 US Bank/Revenue Bonds - COP 2008 121037003 22,795,004.46 22,795,004.46 - US Bank/Revenue Bonds - COP 2008 121037004 2,147,096.26 2,147,096.26 - California Asset Management Program (CAMP) 4-00 6,025,594.43 6,025,594.43 - California Asset Management Program (CAMP) 4-02 609,762.01 609,762.01 - California Asset Management Program (CAMP) 4-04 26,544.44 26,544.44 -1- OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330 CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2595 (760) 729-2343 • FAX (760) 7294234 (760) 741-3141 • FAX (760) 741-9890 Our procedures and findings are as follows (Continued): 1. We reviewed the reconciliations as of December 31, 2008 on the following cash and investment accounts (Continued): (A) The variance of $2,758.73 is made up of $686.34 in unrecorded customers nonsufficient checks and $2,072.39 of unrecorded payroll related adjustments. 2. We reviewed the reconciliation on the Bank of America credit card statement. No exceptions were noted as a result of this procedure. 3. We reviewed the General Manager's final pay check dated January 9, 2009 for the pay period ended January 3, 2009 and performed the following procedures: a. The pay rate per hour used for the final paycheck was agreed to the personnel file and "Employee Agreement for The General Manager". No exceptions were noted as a result of this procedure. b. The number of hours for the final paycheck were agreed to the time card for the pay period ended January 3, 2009 and we verified that the General Manager was only paid for work through December 30, 2008. No exceptions were noted as a result of this procedure, c. For the final payment related to accrued vacation, sick and comp hours, the accrued hours were agreed to the "Vacation, Sick and Admin Time Report" dated January 3, 2009 and we recalculated and verified that the payout was in accordance with "The YLWD Employees Association MOU 2006-2009". No exceptions were noted as a result of this procedure. d. The auto allowance paid for the pay period ended January 3, 2009 was agreed to the "Employee Agreement for the General Manager". No exceptions were noted as a result of this procedure. We were not engaged to, and did not perform an audit, the objective of which would be the expression of an opinion on the accounting records. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the management of the District and is not intended to be and should not be used by anyone other than the specified party. -2- ITEM NO. AGENDA REPORT ,eE(?e ( -se- F/GE _ APFAOWMTHE BOARD OF DIRECTORS Board Meeting Date: March 26, 2009 OFTHE YORBA LINDAWATER DISTRICT To: Board of Directors MAR 2 6 2009 From: Ken Vecchiarelli, General Manager 9Y W 73m/1PC S o Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 5,000 Funding Source: CEQA Account No: 1-33-780 Job No: Compliance: N/A Estimated Costs: $ 3,500Dept: Bus Subject: Arbitrage Calculation on YLWD Series 2003 Certificates of Participation SUMMARY: Pursuant to the laws contained in Section 148 of the Internal Revenue Code of 1986 and applicable Treasury Regulations, a five-year arbitrage calculation is required to be performed on the 2003 Certificates of Participation (COP's). This requirement is to determine the District's arbitrage rebate and yield liabilities for the period September 10, 2003 through September 10, 2008. DISCUSSION: Provisions of Section 148 of the Internal Revenue Code of 1986 (from the Tax Reform Act, codified at 26 U.S.C. §148), as amended, (the "Code") states that the district's long-term debt obligations must meet certain minimum criteria to be considered and continue to be considered "tax exempt." This "tax exempt" status means that interest income earned by purchasers of long-term debt instruments is not subject to federal income taxes. Related U.S. Treasury Regulations under Section 148 of the Code (26 C.F.R. §1.148-2) generally provide that the determination of tax exempt status is made on or before the date such obligations are issued based on reasonable expectations about the use of the bond proceeds. Since these issues are sold in the tax-exempt market and reinvested in the taxable market, the rates for reinvestment will normally be higher because of the nature of the markets' relative risks. Long-term debt that does not meet and continue to meet the minimum criteria of Section 148 of the Internal Revenue Code and the related Treasury Regulations described above are considered "arbitrage bonds" and are not considered "tax exempt." If bond proceeds are invested at a higher yield than the effective interest rate being paid on the bonds, they are said to produce arbitrage profits, and with only few exceptions, those profits must be paid back to the federal government. Under current tax laws, a district must make calculations periodically to determine any amounts that it might owe the federal government under these rules and must make actual payments of any amounts owed in five-year increments. Obligations will become arbitrage bonds (as described above) if a district does not convey arbitrage profits to the federal government as rebate payments under Section 148(f) of the Code. The district's obligation to calculate and make rebate payments (if any) will continue as long as there are gross proceeds allocable to that outstanding debt issues. All debt issues are separate and stand alone. Failure to remit arbitrage profits to the Internal Revenue Service (IRS) when due can result in a penalty equal to 50 percent of the rebate amount due, plus late filing interest. That being said, the investment should be designed to earn as much interest as allowed. If too much interest is earned, it is simply rebated to the IRS. There is no penalty or stigma involved as long as the payment is timely. The danger is not earning the allowed interest and consequently spending money on interest for borrowed money before the money is needed. For example, if a tax-exempt bond issue is sold at a yield of 5.5 percent and the proceeds are invested in taxable securities of 6.75 percent, arbitrage of 1.25 percent (6.75 percent - 5.5 percent) is being earned. On the other hand, selling a bond with a yield of 5.5 percent before it is needed for construction, for example, and investing the proceeds in a savings account that only earns 3 percent interest means that the a district is losing 2.5 percent interest (5.5 percent - 3 percent). In the long run, every dollar the district has to pay in interest is a dollar that is no longer available for construction. The subject of arbitrage is one of the most important concepts in the municipal bond field. Unfortunately, it is also quite complex and exceedingly technical. For this reason, the District engaged the firm of Grant Thornton, LLP to perform the arbitrage calculation. The arbitrage calculation was completed on February 19, 2009. Pursuant to the calculation it highlights a cumulative negative rebate liability amount as of September 10, 2008 of ($1,100.909.11). As of this date, there is no liability and no payment or filing is due to the IRS. PRIOR RELEVANT BOARD ACTION(S): None. STAFF RECOMMENDATION: That the Board of Directors receive and file the Independent Accountants' Report on Applying Agreed-Upon Procedures for the Installment Arbitrage Rebate Report for the 2003 COP's. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee discussed this item at its meeting held March 13, 2009 and supports staffs recommendation. Installment Arbitrage Rebate Report Yorba Linda Water District Series 2003 For the Period Ending September 10, 2008 i Contents Report Exhibit A Summary Of Arbitrage Rebate And Yield Restriction Exhibit B Sources And Uses Of Funds Exhibit C Debt Service Payments And Yield On The Certificates Exhibit D Acquisition Fund Exhibit E Delivery Cost Fund ® GrantThornton Audit a Tax a Advisory Grad Thornton LLP 200 S 6th Street, Sub 500 Mnneapulls, MN 55402-1459 Report of Independent Certified Public Accountants T 612.332.0001 On Applying Agreed-Upon Procedures F612.332.8361 w .GraMThomhmxw Yorba Linda Water District 1717 East Mlraloma Avenue Placentia, California $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant-Phase 3 Renovation Project) Series 2003 We have performed the procedures enumerated below, which were agreed to by management of the Yorba Linda Water District (the "District'. These procedures were performed solely to assist you in determining your arbitrage rebate and yield reduction liabilities under laws contained in Section 148 of the Internal Revenue Code of 1986 and applicable Treasury Regulations, as amended, (collectively, the "Code') in connection with the above-captioned issue (the "Certificates') for the period from September 10, 2003 through September 10, 2008 (the "Computation Period'). The District's management is responsible for compliance with the laws and regulations mentioned above. This agreed-upon procedures engagement was performed in accordance with Statements on Standards for Attestation Engagements established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the management of the District Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Based upon the Code, relevant sections of the Certificate Documents, as defined below, information provided by the District, and the attached Computational Assumptions, we performed the following procedures: (1) We read sections of the Official Statement, Tax Certificate, and Form 8038-G (collectively, the "Certificate Documents'o for the Certificates to understand the nature of this financing transaction. (2) We calculated the Certificate yield of 4.970516 percent as detailed in Exhibit C. onnt Th~ rev U.S. membm In of cram Thmrb. ftmadmW lm 1 z (3) We accumulated the investment activity of the Certificate proceeds subject to arbitrage rebate and yield restriction (the "Relevant Cash Flow" as described in the Computation Assumptions), as detailed in Exhibits D through E. (4) Using the Certificate yield, we calculated the potential rebate liability on the Relevant Cash Flow using the future value method. Based upon the calculation as summarized in Exhibit A, the negative rebate liability is ($1,100,909.11) for the Computation Period, after consideration of the computation credits, and rebate and yield reduction payments, if any. This amount is subject to change due to Certificate and investment activity, if any, occurring after September 10, 2008. (5) Using the Materially Higher Yield, as shown in Exhibit A, we calculated the potential yield reduction liability on the Relevant Cash Flow using the future value method. Based upon the calculation as summarized in Exhibit A, the negative yield reduction liability is ($70,755.81) for the Computation Period, after consideration of the yield reduction payments, if any. This amount is subject to change due to Certificate and investment activity, if any, occurring after September 10, 2008. We were not engaged to, and did not, perform an examination in accordance with Statements on Standards for Attestation Engagements established by the American Institute of Certified Public Accountants, the objective of which would be the expression of an examination opinion on the items referred to above. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the use of those to whom this letter is addressed and is not intended to be and should not be used by anyone other than this specified party. Minneapolis, Minnesota February 16, 2009 3 Computational Assumptions The following computational assumptions relate to the Computation Period and are based upon relevant sections of the Code, Certificate Documents, and client provided assumptions and information. 1. The dated and delivery date of the Certificates is September 10, 2003. 2. The Computation Period is from September 10, 2003 through September 10, 2008. 3. The Certificates constitute a single issue for rebate, yield restriction, and Certificate yield purposes. The Certificates have not been refunded or defeased prior to September 10, 2008. 4. The Sources and Uses of Funds, Exhibit B, reflects actual cash flow activity. 5. Debt service, yield, investment cash flow, and rebate and yield reduction payments, if any, are made or received pursuant to the schedules contained in the attached Exhibits. 6. The Certificate yield calculation, as detailed in Exhibit C, and any supporting exhibits, is based upon the following particular assumptions: i. A 360-day year and semiannual compounding based upon scheduled maturities and applicable mandatory sinking fund redemptions including principal prepayments, if any, and actual interest, if applicable. ii. Those Certificates identified as yield-to-call Certificates, if any, are those Certificates that are subject to optional redemption and that are issued at an issue price that exceeds the stated redemption price at maturity of such Certificates by more than one-fourth of one percent multiplied by the product of the stated redemption price at maturity of such Certificates and the number of complete years to the first optional redemption date for the Certificates. iii. Swap payments and receipts, if any, (the "Swap'D have been included based upon the understanding that the Swap agreement(s) constitutes a qualified hedge and that the Swap bore rates equal to the on-market rates determined as of the date the parties enter into the agreement(s), iv. Qualified guarantee costs, if any, have been included based upon the understanding that the payment of such amounts have resulted in a present value savings attributable to the guarantee through a reduction of interest and none of the amounts were for any non-guarantee services associated with the guarantee that do not qualify as a qualified guarantee cost. 7. The "Future Value" method of determining rebate and yield reduction liability is based upon cash flows created by the investment, sale, and maturity of, and earnings on, gross proceeds. To the extent receipts and payments, including investments and reinvestments, with respect to gross proceeds occur on the same day and in like amount, they offset each other for purposes of determining rebate and yield reduction liabilities. Consequently, under the heading "Relevant Cash Flow" on the following exhibits, only payments and receipts, which are not so offset, are reflected. 8. The purchase price of each investment is at fair market value, exclusive of brokerage commissions, administrative expenses, or similar expenses, and representative of an arm's length transaction, which did not reduce the rebate amount required to be paid to the United States Treasury. 4 Computational Assumptions, Continued 9. The fund(s) subject to arbitrage rebate or yield restriction are those funds summarized in Exhibit A. Fund(s) not so identified by us and excluded from the attached Exhibit(s) are assumed either: (i) not subject to rebate or yield restriction, (ii) not to have non-purpose investment activity or, (iii) if not provided (which includes grant monies, if any, received), inclusion of such activity would have a negligible impact on the rebate and yield reduction liability. Commingled fund(s), if any, are allocated using a ratable allocation method to allocate gross proceeds to expenditures. 10. We have assumed that: n together, the fund(s) and associated accounts identified, together, as a "bona fide debt service fund", satisfied the definitional and timing requirements of a "bona fide debt service fund" as such term is defined in the Code, and together, does not exceed the $100,000 yearly earnings limitation, if applicable. 11. We have assumed, as applicable, that: i. Reimbursement of expenditures, if any, incurred prior to September 10, 2003 comply with the specific reimbursement rules. ii. Withdrawals or allocations from fund(s) are spent or reasonably expected to be spent within five business days. iii. Any reserve is reasonably required and not over funded and therefore unrestricted with respect to yield. iv. No transferred proceeds exist, with respect to the Certificates, other than those identified in the Exhibits, if any. v. No other replacement proceeds exist other than those fund(s) identified in the attached exhibits or noted herein. vi. Any investment fees treated as a reduction of investment income are qualified administrative costs. vii. The scope of our procedures does not include procedures to analyze the private use limitations, if any, associated with the Certificates. Exhibit A Page 1 of 1 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 SUMMARY OF ARBITRAGE REBATE AND YIELD RESTRICTION Dated Date 09/10/03 Delivery Date 09/10/03 Computation Date 09/10/08 Certificate Yield 4.970516% Materially Higher Yield 5.095516% Allowable Yield Spread 0.125000% Rebate Amount ($1,094,529.79) Less: Computation Credits (6,379.32) Rebate Liability ($1,100,909.11) Less: Previous Payment Credits 0.00 Unpaid Rebate Liability ($1,100 90% Rebate Payment NA 100% Yield Reduction Payment NA SUMMARY OF REBATE AND YIELD REDUCTION AMOUNT BY FUND Yield Rebate Reduction Exhibit Description Status Amount Amount D Acquisition Fund Inactive ($1,093,595.44) ($70,755.81) E Delivery Cost Fund Inactive (934.35) 0.00 Total ($1,094,529.79) ($70,755.81) COMPUTATION CREDITS Value As Of 09/10/08 At Certificate Yield Date Credit 4.970516% 09/10/04 $1,000.00 $1,217.00 09/10/05 1,000.00 1,158.69 09/10/06 1,000.00 1,103.18 09/10/07 1,400.00 1,470.45 09/10/08 1,430.00 1,430.00 8 Exhibit B Page 1 of 1 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 SOURCES AND USES OF FUNDS SOURCES: Principal Amount $10,645,000.00 Net Original Issue Discount (162,972.15) $10,482,027.85 USES: Acquisition Fund $10,200,000.00 Delivery Cost Fund 152,438.91 Qualified Guarantee Cost 76,539.02 Underwriter's Discount 53,049.92 $10,482,027.85 i Exhibit C Page 1 of 2 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 DEBT SERVICE PAYMENTS AND YIELD ON THE CERTIFICATES Yield On The Certificates 4.970516% Present Value On 09/10/03 Principal Interest Interest Total Debt At A Yield Of Dates Payments Rate Payments Service 4.9705160/9 04/01/04 $267,197.40 $267,197.40 $259,972.25 10/01/04 $170,000 2.000% 239,281.25 409,281.25 388,557.43 04/01/05 237,581.25 237,581.25 220,081.81 10/01/05 200,000 2.000% 237,581.25 437,581.25 395,520.76 04/01/06 235,581.25 235,581.25 207,773.38 10/01/06 205,000 2.0000/6 235,581.25 440,581.25 379,152.39 04/01/07 233,531.25 233,531.25 196,097.20 10/01/07 210,000 2.350% 233,531.25 443,531.25 363,403.59 04/01/08 231,063.75 231,063.75 184,729.14 10/01/08 215,000 2.625% 231,063.75 446,063.75 347,967.85 04/01/09 228,241.88 228,241.88 173,730.52 10/01/09 220,000 3.100% 228,241.88 448,241.88 332,913.82 04/01/10 224,831.88 224,831.88 162,935.56 10/01/10 225,000 3.500% 224,831.88 449,831.88 318,087.66 04/01/11 220,894.38 220,894.38 152,412.24 10/01/11 235,000 3.750% 220,894.38 455,894.38 306,929.08 04/01/12 216,488.13 216,488.13 142,215.35 10/01/12 245,000 4.000% 216,488.13 461,488.13 295,809.10 04/01/13 211,588.13 211,588.13 132,336.88 10/01/13 255,000 4.0000/6 211,588.13 466,588.13 284,748.79 04/01/14 206,488.13 206,488.13 122,959.44 10/01/14 265,000 4.200% 206,488.13 471,488.13 273,953.07 04/01/15 200,923.13 200,923.13 113,913.17 10/01/15 275,000 4.300% 200,923.13 475,923.13 263,280.94 04/01/16 195,010.63 195,010.63 105,263.91 10/01/16 285,000 4.400% 195,010.63 480,010.63 252,819.56 04/01/17 188,740.63 188,740.63 96,998.23 10/01/17 300,000 4.500% 188,740.63 488,740.63 245,084.29 04/01/18 181,990.63 181,990.63 89,048.10 10/01/18 315,000 4.625% 181,990.63 496,990.63 237,280.71 04/01/19 174,706.25 174,706.25 81,388.17 10/01/19 325,000 4.700% 174,706.25 499,706.25 227,146.59 04/01/20 167,068.75 167,068.75 74,101.20 10/01/20 345,000 4.750% 167,068.75 512,068.75 221,613.86 04/01/21 158,875.00 158,875.00 67,090.77 10/01/21 360,000 5.000% 158,875.00 518,875.00 213,800.44 04/01/22 149,875.00 149,875.00 60,257.85 10/01/22 375,000 5.000% 149,875.00 524,875.00 205,910.71 Exhibit C Page 2 of 2 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 DEBT SERVICE PAYMENTS AND YIELD ON THE CERTIFICATES Yield On The Certificates 4.970516% Present Value On 09/10/03 Principal Interest Interest Total Debt At A Yield Of Dates Payments Rate Payments Service 4.970516% 04/01/23 140,500.00 140,500.00 53,782.13 10/01/23 395,000 5.0000/0 140,500.00 535,500.00 200,013.69 04/01/24 130,625.00 130,625.00 47,606.38 10/01/24 415,000 5.000% 130,625.00 545,625.00 194,031.27 04/01/25 120,250.00 120,250.00 41,725.46 10/01/25 435,000 5.0000/a 120,250.00 555,250.00 187,993.67 04/01/26 109,375.00 109,375.00 36,133.61 10/01/26 460,000 5.0000/9 109,375.00 569,375.00 183,539.80 04/01/27 97,875.00 97,875.00 30,785.22 10/01/27 480,000 5.000% 97,875.00 577,875.00 177,354.81 04/01/28 85,875.00 85,875.00 25,716.65 10/01/28 505,000 5.000% 85,875.00 590,875.00 172,656.08 04/01/29 73,250.00 73,250.00 20,884.90 10/01/29 530,000 5.000% 73,250.00 603,250.00 167,826.60 04/01/30 60,000.00 60,000.00 16,287.46 10/01/30 555,000 5,000% 60,000.00 615,000.00 162,898.02 04/01/31 46,125.00 46,125.00 11,921.08 10/01/31 585,000 5.000% 46,125.00 631,125.00 159,159.76 04/01/32 31,500.00 31,500.00 7,751.17 10/01/32 615,000 1000% 31,500.00 646,500.00 155,225.70 04/01/33 16,125.00 16,125.00 3,777.75 10/01/33 645,000 5.000% 16,125.00 661,125.00 151,131.81 10645 000 9,656,438.65 $20,301,438.65 110,405,488.83 ARBITRAGE TARGET VALUE Principal Amount Of The Certificates $10,645,000.00 Net Original Issue Discount (162,972.15) Qualified Guarantee Cost (76,539.02) Arbitrage Target Value $10,405,488.83 I Exhibit C-1 Page 1 of 1 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richlidd Plant - Phase 3 Renovation Project) Series 2003 NET ORIGINAL ISSUE DISCOUNT ON THE CERTIFICATES Net Original Issue Maturity Principal Coupon Yield Price Discount 10/01/04 $170,000 2.000% 1.0500/9 100.996% $1,693.20 10/01/05 200,000 2.000°/v 1350% 101.314% 2,628.00 10/01/06 205,000 2.000% 1.7400/a 100.7700/6 1,578.50 10/01/07 210,000 2.350% 2.380% 99.883% (245.70) 10/01/08 215,000 2.625% 2.7000/c 99.646% (761.10) 10/01/09 220,000 3.100% 3.120% 99.889% (244.20) 10/01/10 225,000 3.500% 3.520% 99.8740/c (283.50) 10/01/11 235,000 3.750% 3.8200/6 99.516% (1,137.40) 10/01/12 245,000 4.0000/9 3.960% 100.299% 732.55 10/01/13 255,000 4.000% 4.080% 99.343% (1,675.35) 10/01/14 265,000 4.200% 4.260% 99.472% (1,399.20) 10/01/15 275,000 4.3000/° 4.430% 98.793% (3,319.25) 10/01/16 285,000 4.400% 4.540% 98.629% (3,907.35) 10/01/17 300,000 4.500% 4.6400/° 98.563% (4,311.00) 10/01/18 315,000 4.625% 4.740% 98.769% (3,877.65) 10/01/19 325,000 4.7000/a 4.840% 98.446% (5,050.50) 10/01/20 345,000 4.7500/6 4.930% 97.936% (7,120.80) 10/01/21 360,000 5.0000/0 5.000% 100.0000/0 10/01/22 375,000 5.0000/a 5.040% 99.5100/0 (1,837.50) 10/01/23 395,000 5.000% 5.060% 99.246% (2,978.30) 10/01/28 2,295,000 5.0000/0 5.1600/0 97.7600/6 (51,408.00) 10/01/33 2,930,000 5.0000/6 5.180% 97.2680/9 (80,047.60) $SO,G45,000 ($162,972.15) Exhibit D Page 1 of 6 I $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 ACQUISITION FUND Rebate Amount ($1,093,595.44) Yield Reduction Amount ($70,755.81) Status Inactive RELEVANT CASH FLOW Value As Of Value As Of 09/10/08 09/10/08 Relevant At Bond Yield At Restricted Yield Date Description Cash Flow 4.970516% 5.0955160/a 09/10/03 Receipt ($10,200,000.00) ($13,038,095.31) 10/08/03 Withdrawal 6,477.12 8,247.79 10/15/03 Withdrawal 1,871.56 2,380.92 10/23/03 Withdrawal 6,743.00 8,568.80 02/04/04 Withdrawal 37,177.86 46,598.21 03/16/04 Withdrawal 2,878.72 3,587.54 07/09/04 Receipt (12,723.71) (15,614.14) 08/16/04 Withdrawal 12,416.10 15,159.95 10/06/04 Withdrawal 16,864.07 20,450.96 10/19/04 Withdrawal 8,850.00 10,713.33 10/29/04 Receipt (8,850.00) (10,698.73) 11/01/04 Withdrawal 8,850.00 10,695.81 12/14/04 Withdrawal 12,734.88 15,300.95 12/27/04 Withdrawal 10,292.45 12,344.47 12/27/04 Withdrawal 592.73 710.90 02/03/05 Withdrawal 8,656.33 10,331.30 03/07/05 Withdrawal 12,902.00 15,327.26 03/07/05 Withdrawal 57,000.00 67,714.60 03/24/05 Withdrawal 10,901.74 12,921.01 04/27/05 Withdrawal 13,716.97 16,184.68 06/14/05 Withdrawal 25,409.36 29,789.00 06/21/05 Withdrawal 22,808.78 26,714.66 07/20/05 Withdrawal 9,016.51 10,518.85 08/18/05 Withdrawal 4,026.47 4,679.46 08/18/05 Withdrawal 1,702.75 1,978.89 08/18/05 Withdrawal 8,346.47 9,700.06 09/08/05 Withdrawal 103.98 120.51 09/19/05 Withdrawal 22,049.25 25,516.97 09/19/05 Withdrawal 10,000.00 11,572.72 09/19/05 Withdrawal 2,542.74 2,942.64 11/29/05 Withdrawal 3,132.64 3,590.87 12/20/05 Withdrawal 2,484.29 2,839.54 02/14/06 Withdrawal 9,266.25 10,513.59 Exhibit D Page 2 of 6 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 ACQUISITION FUND Rebate Amount ($1,093,595.44) Yield Reduction Amount ($70,755.81) Status Inactive RELEVANT CASH FLOW Value As Of Value As Of 09/10/08 09/10/08 Relevant At Bond Yield At Restricted Yield Date Description Cash Flow 4.9705160/6 5.095516% 02/14/06 Withdrawal 15,508.19 17,595.76 02/22/06 Withdrawal 1,875.00 2,125.08 02/22/06 Withdrawal 1,029.70 1,167.03 04/07/06 Withdrawal 2,869.75 3,232.60 04/07/06 Withdrawal 2,264.55 2,550.88 05/19/06 Withdrawal 2,533.81 2,837.88 05/19/06 Withdrawal 1,438.87 1,611.54 05/19/06 Withdrawal 33,738.22 37,786.99 06/05/06 Withdrawal 1,169.22 1,306.68 06/19/06 Withdrawal 5,329.27 5,944.44 06/19/06 Withdrawal 2,860.00 3,190.14 06/29/06 Withdrawal 26,256.98 29,247.97 07/07/06 Withdrawal 250.00 278.17 07/20/06 Withdrawal 4,051.86 4,500.51 07/20/06 Withdrawal 10,665.56 11,846.52 07/20/06 Withdrawal 1,397.50 1,552.24 07/20/06 Withdrawal 300.00 333.22 08/10/06 Withdrawal 8,716.25 9,655.00 08/10/06 Withdrawal 3,096.00 3,429.44 08/28/06 Withdrawal 8,075.81 8,923.65 08/28/06 Withdrawal 1,389.50 1,535.38 08/28/06 Withdrawal 2,138.76 2,363.30 09/10/06 Valuation 10,383,987.56 11,455,386.62 09/10/06 Valuation (10,383,987.56) (11,455,386.62) ($11,483,356.17) 09/12/06 Withdrawal 35,980.89 39,682.50 39,779.12 09/12/06 Withdrawal 1,125.00 1,240.74 1,243.76 09/22/06 Withdrawal 2,508.50 2,762.80 2,769.43 09/22/06 Withdrawal 2,142.50 2,359.69 2,365.36 09/22/06 Withdrawal 985.00 1,084.85 1,087.46 09/22/06 Withdrawal 1,730.00 1,905.38 1,909.95 10/13/06 Withdrawal 21,655.35 23,782.43 23,837.83 10/17/06 Withdrawal 27.50 30.18 30.25 10/25/06 Withdrawal 657.43 720.82 722.47 11/01/06 Withdrawal 20.03 21.94 21.99 Exhibit D Page 3 of 6 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 ACQUISITION FUND Rebate Amount ($1,093,595.44) Yield Reduction Amount ($70,755.81) Status Inactive RELEVANT CASH PLOW Value As Of Value As Of 09/10/08 09/10/08 Relevant At Bond Yield At Restricted Yield Date Description Cash Flow 4.970516% 5.0955160/9 11/08/06 Withdrawal 1,905.25 2,085.27 2,089.95 11/20/06 Withdrawal 6,797.76 7,427.89 7,444.26 11/20/06 Withdrawal 4,171.50 4,558.18 4,568.23 12/13/06 Withdrawal 8,900.47 9,695.05 9,715.66 12/18/06 Withdrawal 1,847.90 2,011.50 2,015.74 12/18/06 Withdrawal 985.00 1,072.20 1,074.46 12/18/06 Withdrawal 19,821.68 21576.53 21,622.03 12/18/06 Withdrawal 25,128.78 27,353.47 27,411.16 01/05/07 Withdrawal 2,267.07 2,462.06 2,467.11 01/05/07 Withdrawal 42.88 46.57 46.66 01/24/07 Withdrawal 7,853.38 8,506.78 8,523.68 01/24/07 Withdrawal 115.13 124.71 124.96 02/07/07 Withdrawal 15,026.17 16,247.52 16,279.08 02/07/07 Withdrawal 36,938.37 39,940.78 40,018.37 02/16/07 Withdrawal 9,014.80 9,735.58 9,754.19 03/07/07 Withdrawal 125.00 134.61 134.86 03/07/07 Withdrawal 7,689.40 8,280.46 8,295.70 03/07/07 Withdrawal 139.16 149.86 150.13 03/07/07 Withdrawal 387.45 417.23 418.00 03/27/07 Withdrawal 11,527.12 12,379.36 12,401.31 03/27/07 Withdrawal 4,425.00 4,752.15 4,760.58 03/27/07 Withdrawal 428.19 459.85 460.66 03/27/07 Withdrawal 2,524.02 2,710.63 2,715.43 04/05/07 Withdrawal 9,523.36 10,216.30. 10,234.14 04/05/07 Withdrawal 269.92 289.56 290.07 04/05/07 Withdrawal 3,309.50 3,550.31 3,556.50 04/05/07 Withdrawal 2,677.68 2,872.51 2,877.53 04/05/07 Withdrawal 269.92 289.56 290.07 04/05/07 Receipt (269.92) (289.56) (290.07) 04/10/07 Withdrawal 169,898.40 182,136.33 182,451.22 04/20/07 Withdrawal 1,353.62 1,449.14 1,451.60 04/23/07 Receipt (670.00) (716.99) (718.20) 05/08/07 Withdrawal 640.61 684.14 685.25 05/08/07 Withdrawal 258,168.36 275,709.59 276,160.06 Exhibit D Page 4 of 6 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 ACQUISITION FUND Rebate Amount ($1,093,595.44) Yield Reduction Amount ($70,755.81) Status Inactive RELEVANT CASH FLOW Value As Of Value As Of 09/10/08 09/10/08 Relevant At Bond Yield At Restricted Yield Date Description Cash Flow 4.970516% 5.095516% 05/08/07 Withdrawal 2,965.00 3,166.46 3,171.63 05/30/07 Withdrawal 14,577.85 15,521.70 15,545.90 05/30/07 Withdrawal 26,200.00 27,896.33 27,939.83 06/14/07 Withdrawal 50,687.64 53,866.49 53,947.92 06/14/07 Withdrawal 14,436.95 15,342.35 15,365.55 06/14/07 Withdrawal 402,339.61 427,572.11 428,218.48 06/14/07 Withdrawal 5,262.50 5,592.53 5,600.99 06/14/07 Withdrawal 113.16 120.26 120.44 06/14/07 Withdrawal 450.00 478.22 478.94 07/12/07 Withdrawal 30,462.90 32,249.97 32,295.67 07/12/07 Withdrawal 599,735.51 634,918.38 635,817.91 07/12/07 Withdrawal 621.93 658.41 659.35 07/12/07 Withdrawal 770.00 815.17 816.33 07/12/07 Withdrawal 247.08 261.57 261.95 07/26/07 Withdrawal 34,796.21 36,767.23 36,817.57 07/26/07 Withdrawal 28,504.60 30,119.23 30,160.47 07/26/07 Withdrawal 9,544.50 10,085.14 10,098.95 07/26/07 Withdrawal 13,608.75 14,379.61 14,399.30 08/08/07 Withdrawal 380,165.63 401,043.06 401,575.88 08/08/07 Withdrawal 12,125.00 12,790.86 12,807.86 08/22/07 Withdrawal 37,210.41 39,179.00 39,229.20 08/22/07 Withdrawal 1,471.52 1,549.37 1,551.35 09/13/07 Withdrawal 707,754.80 743,066.92 743,965.95 09/13/07 Withdrawal 11,925.00 12,519.98 12,535.12 09/13/07 Withdrawal 38,817.28 40,754.00 40,803.30 09/13/07 Withdrawal 65,164.20 68,415.45 68,498.22 10/11/07 Withdrawal 459,352.13 480,432.52 480,968.18 10/11/07 Withdrawal 16,260.00 17,006.20 17,025.16 10/11/07 Withdrawal 21,510.68 22,497.84 22,522.92 10/11/07 Withdrawal 4,800.00 5,020.28 5,025.88 10/11/07 Withdrawal 4,344.24 4,543.60 4,548.67 10/11/07 Withdrawal 880,875.47 921,300.24 922,327.43 10/19/07 Withdrawal 7,500.00 7,835.63 7,844.16 10/25/07 Withdrawal 1,200.00 1,252.68 1,254.01 Exhibit D Page 5 of 6 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 ACQUISITION FUND Rebate Amount ($1,093,595.44) Yield Reduction Amount ($70,755.81) Status Inactive RELEVANT CASH FLOW Value As Of Value As Of 09/10/08 09/10/08 Relevant At Bond Yield At Restricted Yield Date Description Cash Flow 4.970516% 5.095516% 10/25/07 Withdrawal 20,284.67 21,175.10 21,197.70 10/25/07 Withdrawal 688,647.45 718,876.67 719,644.05 10/25/07 Withdrawal 763,984.43 797,520.68 798,372.01 11/08/07 Withdrawal 576,821.86 601,075.69 601,690.83 11/08/07 Withdrawal 8,200.46 8,545.27 8,554.01 11/08/07 Withdrawal 160,359.65 167,102.35 167,273.36 11/08/07 Withdrawal 24,057.10 25,068.64 25,094.29 11/08/07 Withdrawal 145,564.43 151,685.03 151,840.26 11/15/07 Withdrawal 1,101,334.73 1,146,547.84 1,147,694.00 11/20/07 Withdrawal 12,501.50 13,005.85 13,018.63 12/13/07 Withdrawal 477,857.68 495,579.09 496,027.46 12/13/07 Withdrawal 914.00 947.90 948.75 12/27/07 Withdrawal 10,139.00 10,494.95 10,503.95 12/27/07 Withdrawal 74,426.97 77,039.87 77,105.91 12/27/07 Withdrawal 5,564.10 5,759.44 5,764.38 12/27/07 Withdrawal 19,151.92 19,824.28 19,841.28 12/27/07 Withdrawal 159,575.72 165,177.92 165,319.53 01/04/08 Withdrawal 7,221.78 7,468.18 7,474.41 01/10/08 Withdrawal 427,382.60 441,603.02 441,962.13 01/10/08 Withdrawal 640.00 661.29 661.83 01/10/08 Withdrawal 25,312.22 26,154.44 26,175.71 01/10/08 Withdrawal 18,702.76 19,325.06 19,340.78 01/24/08 Withdrawal 2,210.00 2,279.18 2,280.92 01/24/08 Withdrawal 46,000.00 47,439.90 47,476.23 01/24/08 Withdrawal 6,009.54 6,197.65 6,202.40 01/24/08 Withdrawal 11,980.00 12,355.00 12,364.46 01/24/08 Withdrawal 8,705.73 8,978.24 8,985.11 01/24/08 Withdrawal 36,397.69 37,537.02 37,565.76 02/07/08 Withdrawal 133,218.62 137,145.30 137,244.27 02/14/08 Withdrawal 559,759.65 575,708.93 576,110.75 02/14/08 Withdrawal 20,589.67 21,176.33 21,191.11 02/14/08 Withdrawal 14,275.00 14,681.74 14,691.99 02/14/08 Withdrawal 2,678.07 2,754.38 2,756.30 02/14/08 Withdrawal 16,198.85 18,717.39 18,730.46 Exhibit D Page 6 of 6 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 ACQUISITION FUND Rebate Amount ($1,093,595.44) Yield Reduction Amount ($70,755.81) Status Inactive RELEVANT CASH FLOW Value As Of Value As Of 09/10/08 09/10/08 Relevant At Bond Yield At Restricted Yield Date Description Cash Flow 4.9705160/9 5.095516% 02/14/08 Withdrawal 764.10 785.87 786.42 02/14/08 Withdrawal 37,831.30 38,909.23 38,936.39 02/14/08 Withdrawal 225.00 231.41 231.57 02/14/08 Withdrawal 3,844.00 3,953.53 3,956.29 02/14/08 Withdrawal 1,828.75 1,880.86 1,882.17 02/14/08 Withdrawal 2,958.23 3,042.52 3,044.64 02/14/08 Withdrawal 12,417.00 12,770.80 12,779.71 02/27/08 Withdrawal 596,736.72 612,652.42 613,053.03 02/28/08 Withdrawal 11,311.50 11,611.61 11,619.16 02/28/08 Withdrawal 16,897.57 17,345.88 17,357.17 02/28/08 Withdrawal 292.71 300.48 300.67 02/28/08 Withdrawal 13,685.00 14,048.08 14,057.22 03/13/08 Withdrawal 9,906.53 10,148.58 10,154.67 03/13/08 Withdrawal 212.60 217.79 217.93 03/24/08 Withdrawal 6,063.69 6,202.53 6,206.02 03/24/08 Withdrawal 24,113.57 24,665.71 24,679.59 03/24/08 Withdrawal 1,511.92 1,546.54 1,547.41 03/24/08 Withdrawal 11,930.05 12,203.22 12,210.08 03/24/08 Withdrawal 945.60 967.25 967.80 04/03/08 Withdrawal 57.65 58.90 58.93 09/10/08 Valuation 0.00 0.00 0.00 ($70,755.61) Total $1,173,263.13 ($1,093,595.44) Exhibit D-1 Page 1 of 1 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 ACQUISITION FUND INVESTMENT VALUATION SUMMARY AS OF 09/10/06 Par Maturity Acquisition Description Amount Date Rate Yield Cost Valuation Gain (Lose) MMKT $10,370,757.26 NA NA NA $10,370,757.26 $10,383,987.56 $13,230.30 $10,370,757.26 $10,383,987.56 $13,230.30 INVESTMENT VALUATION DETAIL Rate: NA Description: MMKr Yield to Maturity: NA Acquisition Date: NA Disposition Date: 09/10/06 Maturity Date: NA Accreted Value on Disp. Date: $10,370,757.26 Paz Amount - $10,370,757.26 Market Value on Disp. Date: NA Acquisition Cost (Basis): $10,370,757.26 Accrued @ Disposition: $13,230.30 Valuation as of 09/10/06 $10,383,987.56 Basis: Basis: Actual/Actual 1 Purchase Price of Par): 100.000 Compounding: Monthly 12 Par Outstanding on Disp. Date: $10,370,757.26 Last Interest Payment: 09/05/06 Accreted Price on Disp. Date: 100.000 Gain/Loss Due to Accretion: $0.00 Exhibit E Page 1 of 1 $10,645,000 Yorba Linda Water District Revenue Certificates of Participation (Highland Reservoir Renovation and Richfield Plant - Phase 3 Renovation Project) Series 2003 DELIVERY COST FUND Rebate Amount ($934.35) Status - Inactive RELEVANT CASH FLOW Value As Of 09/10/08 Relevant At Bond Yield Date Description Cash Flow 4.9705160/6 09/10/03 Receipt ($152,438.91) ($194,854.22) 09/10/03 Withdrawal 41,870.00 53,520.10 09/10/03 Withdrawal 62,000.00 79,251.17 09/10/03 Withdrawal 25.00 31.96 09/10/03 Withdrawal 150.00 191.74 09/10/03 Withdrawal 3,000.00 3,834.73 09/10/03 Receipt (41,870.00) (53,520.10) 09/10/03 Withdrawal 41,870.00 53,520.10 09/17/03 Withdrawal 3,750.00 4,788.84 11/03/03 Withdrawal 6,250.00 7,931.49 11/20/03 Withdrawal 12,000.00 15,193.20 11/24/03 Withdrawal 9,891.99 12,517.41 06/25/04 Withdrawal 850.00 1,045.09 07/09/04 Withdrawal 12,723.71 15,614.14 09/10/08 Valuation 0.00 0.00 Total $71.79 ($934.35) ITEM NO. AGENDA REPORT Board Meeting Date: March 26, 2009 APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT To: Board of Directors MAR 2 6 2009 From: Ken Vecchiarelli, General Manager BY _ Staff Contact: Gina Knight, Human Resources Manager 'Qe~P9 6 D Reviewed by General Counsel: Yes Budgeted: Dept: Admin Funding Source: CEQA Compliance: N/A Account No: Job No: N/A Estimated Costs: Subject: Resolution 09-03, Implementing a Risk Management Claims Policy SUMMARY: The proposed Risk Management Claims Policy establishes procedures for providing staff guidelines for handling liability claims. DISCUSSION: Staff recommends the implementation of a policy with business standard procedures for handling liability claims to ensure prudent and cost-effective management of any claims filed against the District. This policy would be applicable to all tort liability claims submitted to the District pursuant to Government Code Section 900 et seq. Once the claim is received by the District's Risk Manager, the policy provides, with the concurrence of the General Manager and/or Assistant General Manager, the discretion to apply one or more of the following procedures: 1. Allow, deny, compromise or settle any tort claim or action that is filed against the District, its officers or employees, provided that: • The amount to be paid pursuant to such allowance, compromise or settlement does not exceed $25K per occurrence; • The allowance, compromise or settlement has the concurrence of the District's Legal Counsel or other Legal Counsel retained by the District. If the amount of the claim's allowance, compromise or settlement exceeds $25K, then presentation of the claim must be submitted to the District's Board of Directors with a recommendation to refer the claim settlement to ACWA-JPIA. 2. Conduct audits, inspections or reviews of any Division, Department or operation of the District, and recommend such corrections, modifications or changes that might minimize or reduce the risk to the District's assets, employees or the general public. 3. Recommend to the Board of Directors to reject a claim if no liability on part of the District is found after an investigation is concluded. I 4. Recommend to the Board of Directors to reject and refer a claim that cannot be settled within sixty (60) days. PRIOR RELEVANT BOARD ACTION(S): None. STAFF RECOMMENDATION: That the Board of Directors adopt Resolution 09-03 implementing the District's Risk Management Claims Policy. COMMITTEE RECOMMENDATION: The Personnel/Risk Management Committee supports staffs recommendation. RESOLUTION NO. 09-03 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE DISTRICT RISK MANAGEMENT CLAIMS POLICY WHEREAS, the District desires to establish and insure that all tort liability claims filed against the District are investigated and settled fairly and expeditiously where legal liability is determined; and WHEREAS, the District desires to dispose of claims based on the merits of the claims; and WHEREAS, the District shall pay only those claims for which it is determined that the District has legal liability and the estimated settlement value for all claims arising out of the occurrence does not exceed the District's Retrospective Allocation Point per occurrence as set by the Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA); and WHEREAS, the District shall refer to ACWA/JPIA those claims for which it is determined that the estimated settlement value of all claims arising out of the occurrence exceeds the District's Retrospective Allocation Point per occurrence as set by ACWA/JPIA. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba Linda Water District shall adopt the guidelines set forth in the District Risk Management Claims Policy, Policy No. 7020-09-06. Section 1: The Risk Management Claims Policy adopted herein shall take effect immediately upon adoption of this Resolution. PASSED AND ADOPTED this day of , 2009 by the following called vote: AYES: NOES: ABSENT: ABSTAIN: John W. Summerfield, President ATTEST: Kenneth R. Vecchiarelli, Secretary Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. McCormick, Kidman and Behrens ® Yorba Linda Water District Policies and Procedures Policy No.: 7020-09-06 Effective Date: March 26, 2009 Prepared By: Gina Knight, HR Manager Applicability: District Wide POLICY: RISK MANAGEMENT CLAIMS POLICY 1.0 PURPOSE A: The purpose of this policy is to establish and insure that all tort liability claims filed against the District are investigated and settled fairly and expeditiously where legal liability is determined. 2.0 POLICY Decisions regarding the disposition of a claim shall be based on the merits of that claim. It is the policy of Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA) to pay only those claims for which the District has legal liability. A3.0 SMALL CLAIMS SETTLEMENT OPTION The District has the option of settling or denving claims arising out of any occurrence covered by the JPIA Liability Program that meet ALL of the following criteria: 1. All claims arising out of the occurrence are for "property damage" only; 2. No claim arising out of the occurrence has any apparent potential for related "bodily injury"; 3. Under the JPIA Member Agency's Settlement Authority: the estimated settlement value for all claims arising out of the occurrence does not exceed the Member Agency's Retrospective Allocation Point (RAP) per occurrence as identified in the District's current liability insurance policy program invoice on the E- MOD/Premium Calculation Worksheet; 4. The claim settlement or denial arising out of the occurrence can be concluded within sixty (60) days; and 5. A settlement under this option should be made only when the claim being considered is determined to be based upon liability covered by the JPIA Liability Program. 34.0 PROCEDURES: SMALL CLAIMS SETTLEMENT OPTION A. When the District as an ACWA/JPIA Member Agency becomes aware of, or is presented with, a claim that meets all of the conditions in the above Policy Statement it shall have the option of settling or denying the claim directly. If the District as an ACWA/JPIA Member Agency wishes to exercise this option, it should adhere to the following guidelines. 1. Investigate the claim for evidence of liability on the part of the District; 2. Determine whether the claim is to be handled informally or whether formal claim presentation is required. Under the California Government Code a public agency need not take any action until a claim is presented that meets the Code requirements. In general terms, JPIA recommends that this procedure be followed. The District may waive the formal claim presentation requirement and simply elect to pay based on its own judgment; 3. If no liability on the part of the District is found, the claim should be formally rejected in writing. 4. If the District accepts liability, it should attempt to settle the claim as rapidly as possible; 5. At any time during the process the District may contact the JPIA, for assistance or refer the claim in progress to JPIA to conclude; 6. Any claim that cannot be settled within sixty (60) days should be referred to the JPIA for handling; 7. A Monthly Small Claims Report (Exhibit A) should be submitted promptly to the JPIA as this will insure that the District is reimbursed for the expenses incurred; 8. Within thirty (30) days of the receipt of the District's report, the JPIA will issue a check to the District for reimbursement of the settled claims plus a $100 administrative fee for each claim settled or denied; 9. The settlement reimbursement will be charged to the District in the next retrospective premium calculations. 10. It is important to note that JPIA's policy has changed with regard to the experience modification calculations used in developing the District's deposit premium. Only losses that exceed the District's Retrospective Attachment Point or $15,000 (whichever is less) will be used in the calculation. It is therefore usually in the District's interest to report all small claims. 45.0 PROCEDURES: CLAIMS REPORTING AND HANDLING Except for those claims that the District decides to handle under the "Small Claims Settlement Option", all claims filed under the Liability Program shall be handled according to the following procedures: A. As a general rule, it is important that the District not be drawn into arguments with potential claimants. A major part of JPIA's service to the District is to handle the difficult claimants on the District's behalf. By reporting promptly, the District can take advantage of the service. Once the claim has been reported to the JPIA, District staff should refrain from continued contact with claimants. It is JPIA's responsibility to communicate all settlement offers and to advise claimants of the status of the claim. It is also essential that none of the District's staff give out information concerning the occurrence to anyone but the appropriate law-enforcement investigator, JPIA staff, or others assigned by the JPIA to assist in the investigation of the claim. 1. Initial Reporting: a. All incidents involving damage to property not owned by the District, or injury to non-employees of the District, should be reported promptly to the JPIA by fax or telephone to: ACWA/JPIA 5620 Birdcage Street, Suite 200 Citrus Heights, CA 95610-7632 Phone: (800) 231-5742 FAX: (916) 965-6847 e-mail: claimsCa)acwaipia.com It is important that the District does not wait for a written claim to be filed before reporting to the JPIA. We realize that it is a legal requirement, but unless JPIA has notice of an incident, they are unable to begin an investigation and are often unable to adequately investigate if too much time has passed between the incident date and the report to the JPIA. If the Glaim is repaFted in Districts reports claims to its General Counsel, duplicates of all materials should be forwarded immediately to the JPIA as well, so that there will be no delay in JPIA's receipt of the information. All non-auto incidents should be reported on the "Non-Auto- Only Incident Report Form". (Exhibit B)_-This form is for use by JPIA Member Agencies only to report the incidents to the JPIA. The form should never be given to the claimant for completion. If the loss involves a vehicle accident, please use the "Auto-Only Incident Report Form" and also have the driver complete the "Driver's Report of Accident". (Exhibit C)- Fax the completed forms to the JPIA. The "Claim Form", (Exhibit D), is the proper form to give to someone to present a claim to the District. If you receive a request for a claim form, it is appropriate to gather as much information as possible and complete an incident form to forward to the JPIA. JPIA needs to receive the Claim Form before all the evidence is gone in order to be able to adequately investigate. Sending JPIA the Incident Report immediately can be of considerable benefit to the District. b. Although all liability and property claims will be handled directly with the JPIA, any emergency claims after 4:30 pm or on weekends or holidays, can be reported to: Cunningham Lindsey Adjusters (800) 235-8784 They provide a 24-hour service for all JPIA Member Agencies. If the above service is used, the claim must also be reported to JPIA on the next business day so JPIA may assume the handling and guidance of the claim. C. A State of California Department of Motor Vehicles SR-1 Form (Exhibit E) should be filed with the Department of Motor Vehicles (DMV) for any incident involving a District- owned vehicle. Filing this form is helpful in making uninsured motorists pay claims or face losing their driver's licenses. Although the law requiring the filing of this form does not apply to public agencies, filing it helps reduce inquiries from the DMV to your employees. 2. Subsequent Reporting: Forward all correspondence involving a reported claim directly to the JPIA. This includes the following: a. Any claim or letter filed with the District or any subsequent correspondence or notes of conversations with potential or actual claimants; b. Any legal documents or related correspondence from attorneys or other representatives of claimants or insurance carriers; C. Any letters, memos, or notes of conversations, or other inquiries from interested parties; d. Any police or other public agencies' reports that are available; and e. Any photographs, newspaper articles, etc., that the District can provide. 3. Initial investigation: While it is the responsibility of the JPIA to thoroughly investigate and determine liability in any given case, the assistance of the District in the initial investigation is often invaluable. If the District has a representative at the scene, the following guidelines may improve the quality of the investigation: a. Preserving evidence in a timely fashion is critical to the outcome of the investigation. The faster the investigator gets to the accident scene, the less chance there is that details will be lost. Preserving evidence at the accident scene generally results in a much more successful and accurate outcome. Observing and recording evidence such as instrument readings, control panel settings, plus other routine observations such as the weather are essential to a good investigation. b. Photographs, video cameras, drawings and notes are among the most valuable methods of recording and preserving evidence. 1) General and specific scenes should be photographed to provide a comprehensive record. It is generally best to take too many photographs, since it is often difficult to determine what each one will show until they are developed and reviewed. Photographs of objects involved in the accident may need some reference point to show the proper scale. A ruler or coin, photographed alongside the object, is often helpful. 2) In addition, accurate and complete notes that explain the photographs, who took them, and when, significantly increases their value and the likelihood that they will be admitted as evidence in a court of law. We suggest mounting them on a form, such as the sample that appears in the Attachments. This also provides a place for notes concerning the individual photograph. C. Diagrams are also useful to assist us in understanding the nature of the occurrence. The more accurately drawn the better, but even a hand drawn diagram can be used to present the facts and preserve the investigators recollection of the incident. There is a diagram on the back side of the "ACWA/JPIA Driver's Report of Accident" form (Exhibit F) that is useful for vehicle accidents. d. Witnesses, if found and interviewed promptly, may be the most important source of information in any investigation. Record their names, addresses, home and work phone numbers if at all possible. 1) Identifying witnesses is a critical part of an investigation. Do not limit yourself to those who remained on the scene. Discussions with those who are present may lead to others. A canvas of nearby businesses or homes may also prove fruitful. 2) If you choose to interview witnesses, they should be interviewed one at a time in as much privacy as possible. The accuracy of people's recall is highest immediately after the incident. Many things interfere with recall, including discussions with other witnesses, newspaper accounts or just poor memories. Where possible, the interviews should be conducted at the accident scene, which will allow the witnesses to point out what they consider significant. Remember that interviews of this type are fact finding. It is a good idea to point out to the witness that you are only concerned with the facts at this point, not in assessing blame. 3) The interview itself should be conducted in as relaxed an atmosphere as possible. It is far more important that the interviewer be a good listener than it is to think of good questions. Your goal is to get a general idea of what each witness will say, what he saw, and what value he will have as a witness. Take notes as unobtrusively as possible. It may be best to wait until the interview is over before writing anything down. Unless you have had formal training in taking written or recorded statements, we do not recommend that you attempt to do so. e. Facts are essential. 1) Please try to not put a spin or slant on your report. This creates delays, misunderstandings and tends to actually increase costs as it often results in needless litigation to arrive at the truth. 2) All evidence presented to the JPIA is used to make the appropriate decisions for the District. If you have done a comprehensive investigation, a written report outlining all of the evidence obtained may be of considerable value to JPIA and to the District. 3) The "Incident Report" and "Driver's Report of Accident" forms, while useful for simple situations, have obvious limitations in trying to report on a more complex or detailed investigation. No particular format is required. The goal is the complete and objective "what, when, where and who". B. LITIGATION 1. The JPIA will select and retain appropriate attorneys to defend the District. 2. When litigation begins, it is important all documents are immediately forwarded to JPIA as soon as they are received by the District. All litigation has a very rigid and usually short time frame in which to respond. Holding a summons or complaint can cause problems for the JPIA in defending the District. 66.0 RESPONSIBILITIES A. It is the responsibility of each employee: 1. To carefully read and follow the procedures outlined in this policy in order to prevent unnecessary exposure of the District to litigation. 2. To cooperate with the Risk Manager to protect the health, safety and life of District employees and the public. 3. To follow the procedures outlined in this policy in order to document any incidents. B. It is the responsibility of each Department Manager to ensure: 1. Their staff is versed in the procedures outlined in this policy and that their staff is aware of the importance of adhering to the procedures. 2. The Human Resources Department is made aware of any accidents or incidents impacting the District as soon as possible after the accident or incident, but no later than 24 hours after, so appropriate documents, forms and statements may be gathered and forwarded to JPIA and legal counsel. C. It is the responsibility of the Human Resources Manager to: 1. Contact the General Manager/Assistant General Manager to make them aware of any accidents or incidents that could cause an impact to the District. 2. Ensure contact is made with JPIA and/or legal counsel to apprise them of the possibility of claims against the District. 3. Ensure all materials: incident reports, notes, forms, photographs, witness statements, etc. are forwarded to JPIA and/or legal counsel. APPROVED: Kenneth R. Vecchiarelli Date General Manager 7020-09-06 Exhibit 1 ® Yorba Linda Water District Risk Management Claims Policy Acknowledgement Form I acknowledge that I have received and read the provisions contained in this Risk Management Claims Policy. I understand that it is my responsibility to consult my supervisor or the Human Resources Department if I have any questions that are not answered in the Policy. I also understand that the provisions in this Policy are guidelines and are not intended to be construed as all encompassing. I further understand that the Yorba Linda Water District reserves the right to add to, eliminate, or otherwise change, at any time, any of the provisions contained in this Policy. I understand that any changes will be communicated to me through my supervisor and that the General Manager has the authority to implement and interpret this Policy, and to make necessary changes. I understand that it is my responsibility to follow the provisions contained in this Policy and any subsequent modifications or amendment and failure to do so may result in disciplinary action or termination of employment or services. EMPLOYEE'S NAME (printed): EMPLOYEE'S SIGNATURE: DATE: Distribution: Original to Personnel File I COPY Employee 4 ® Yorba Linda Water District Policies and Procedures Policy No.: 7020-09-06 Effective Date: March 26, 2009 Prepared By: Gina Knight, HR Manager Applicability: District Wide POLICY: RISK MANAGEMENT CLAIMS POLICY 1.0 PURPOSE The purpose of this policy is to establish and insure that all tort liability claims filed against the District are investigated and settled fairly and expeditiously where legal liability is determined. 2.0 POLICY Decisions regarding the disposition of a claim shall be based on the merits of that claim. It is the policy of Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA) to pay only those claims for which the District has legal liability. 3.0 SMALL CLAIMS SETTLEMENT OPTION The District has the option of settling or denying claims arising out of any occurrence covered by the JPIA Liability Program that meet ALL of the following criteria: 1. All claims arising out of the occurrence are for "property damage" only; 2. No claim arising out of the occurrence has any apparent potential for related "bodily injury"; 3. Under the JPIA Member Agency's Settlement Authority: the estimated settlement value for all claims arising out of the occurrence does not exceed the Member Agency's Retrospective Allocation Point (RAP) per occurrence as identified in the District's current liability insurance policy program invoice on the E- MOD/Premium Calculation Worksheet; 4 4. The claim settlement or denial arising out of the occurrence can be concluded within sixty (60) days; and 5. A settlement under this option should be made only when the claim being considered is determined to be based upon liability covered by the JPIA Liability Program. 4.0 PROCEDURES: SMALL CLAIMS SETTLEMENT OPTION A. When the District as an ACWA/JPIA Member Agency becomes aware of, or is presented with, a claim that meets all of the conditions in the above Policy Statement it shall have the option of settling or denying the claim directly. If the District as an ACWA/JPIA Member Agency wishes to exercise this option, it should adhere to the following guidelines. 1. Investigate the claim for evidence of liability on the part of the District; 2. Determine whether the claim is to be handled informally or whether formal claim presentation is required. Under the California Government Code a public agency need not take any action until a claim is presented that meets the Code requirements. In general terms, JPIA recommends that this procedure be followed. The District may waive the formal claim presentation requirement and simply elect to pay based on its own judgment; 3. If no liability on the part of the District is found, the claim should be formally rejected in writing. 4. If the District accepts liability, it should attempt to settle the claim as rapidly as possible; 5. At any time during the process the District may contact the JPIA, for assistance or refer the claim in progress to JPIA to conclude; 6. Any claim that cannot be settled within sixty (60) days should be referred to the JPIA for handling; 7. A Monthly Small Claims Report (Exhibit A) should be submitted promptly to the JPIA as this will insure that the District is reimbursed for the expenses incurred; 8. Within thirty (30) days of the receipt of the District's report, the JPIA will issue a check to the District for reimbursement of the settled claims plus a $100 administrative fee for each claim settled or denied; 9. The settlement reimbursement will be charged to the District in the next retrospective premium calculations. 10. It is important to note that JPIA's policy has changed with regard to the experience modification calculations used in developing the District's deposit premium. Only losses that exceed the District's Retrospective Attachment Point or $15,000 (whichever is less) will be used in the calculation. It is therefore usually in the District's interest to report all small claims. 5.0 PROCEDURES: CLAIMS REPORTING AND HANDLING Except for those claims that the District decides to handle under the "Small Claims Settlement Option", all claims filed under the Liability Program shall be handled according to the following procedures: A. As a general rule, it is important that the District not be drawn into arguments with potential claimants. A major part of JPIA's service to the District is to handle the difficult claimants on the District's behalf. By reporting promptly, the District can take advantage of the service. Once the claim has been reported to the JPIA, District staff should refrain from continued contact with claimants. It is JPIA's responsibility to communicate all settlement offers and to advise claimants of the status of the claim. It is also essential that none of the District's staff give out information concerning the occurrence to anyone but the appropriate law-enforcement investigator, JPIA staff, or others assigned by the JPIA to assist in the investigation of the claim. 1. Initial Reporting: a. All incidents involving damage to property not owned by the District, or injury to non-employees of the District, should be reported promptly to the JPIA by fax or telephone to: ACWA/JPIA 5620 Birdcage Street, Suite 200 Citrus Heights, CA 95610-7632 Phone: (800) 231-5742 FAX: (916) 965-6847 e-mail: claims(&acwaiaia.com It is important that the District does not wait for a written claim to be filed before reporting to the JPIA. We realize that it is a legal requirement, but unless JPIA has notice of an incident, they are unable to begin an investigation and are often unable to adequately investigate if too much time has passed between the incident date and the report to the JPIA. If the District reports claims to its General Counsel, duplicates of all materials should be forwarded immediately to the JPIA as well, so that there will be no delay in JPIA's receipt of the information. All non-auto incidents should be reported on the "Non-Auto- Only Incident Report Form". (Exhibit B) This form is for use by JPIA Member Agencies only to report the incidents to the JPIA. The form should never be given to the claimant for completion. If the loss involves a vehicle accident, please use the "Auto-Only Incident Report Form" and also have the driver complete the "Driver's Report of Accident". (Exhibit C) Fax the completed forms to the JPIA. The "Claim Form", (Exhibit D), is the proper form to give to someone to present a claim to the District. If you receive a request for a claim form, it is appropriate to gather as much information as possible and complete an incident form to forward to the JPIA. JPIA needs to receive the Claim Form before all the evidence is gone in order to be able to adequately investigate. Sending JPIA the Incident Report immediately can be of considerable benefit to the District. b. Although all liability and property claims will be handled directly with the JPIA, any emergency claims after 4:30 pm or on weekends or holidays, can be reported to: Cunningham Lindsey Adjusters (800) 235-8784 They provide a 24-hour service for all JPIA Member Agencies. If the above service is used, the claim must also be reported to JPIA on the next business day so JPIA may assume the handling and guidance of the claim. C. A State of California Department of Motor Vehicles SR-1 Form (Exhibit E) should be filed with the Department of Motor Vehicles (DMV) for any incident involving a District- owned vehicle. Filing this form is helpful in making uninsured motorists pay claims or face losing their driver's licenses. Although the law requiring the filing of this form does not apply to public agencies, filing it helps reduce inquiries from the DMV to your employees. 2. Subsequent Reporting: Forward all correspondence involving a reported claim directly to the JPIA. This includes the following: a. Any claim or letter filed with the District or any subsequent correspondence or notes of conversations with potential or actual claimants; b. Any legal documents or related correspondence from attorneys or other representatives of claimants or insurance carriers; C. Any letters, memos, or notes of conversations, or other inquiries from interested parties; d. Any police or other public agencies' reports that are available; and e. Any photographs, newspaper articles, etc., that the District can provide. 3. Initial investigation: While it is the responsibility of the JPIA to thoroughly investigate and determine liability in any given case, the assistance of the District in the initial investigation is often invaluable. If the District has a representative at the scene, the following guidelines may improve the quality of the investigation: a. Preserving evidence in a timely fashion is critical to the outcome of the investigation. The faster the investigator gets to the accident scene, the less chance there is that details will be lost. Preserving evidence at the accident scene generally results in a much more successful and accurate outcome. Observing and recording evidence such as instrument readings, control panel settings, plus other routine observations such as the weather are essential to a good investigation. b. Photographs, video cameras, drawings and notes are among the most valuable methods of recording and preserving evidence. 1) General and specific scenes should be photographed to provide a comprehensive record. It is generally best to take too many photographs, since it is often difficult to determine what each one will show until they are developed and reviewed. Photographs of objects involved in the accident may need some reference point to show the proper scale. A ruler or coin, photographed alongside the object, is often helpful. 2) In addition, accurate and complete notes that explain the photographs, who took them, and when, significantly increases their value and the likelihood that they will be admitted as evidence in a court of law. We suggest mounting them on a form, such as the sample that appears in the Attachments. This also provides a place for notes concerning the individual photograph. C. Diagrams are also useful to assist us in understanding the nature of the occurrence. The more accurately drawn the better, but even a hand drawn diagram can be used to present the facts and preserve the investigators recollection of the incident. There is a diagram on the back side of the "ACWA/JPIA Driver's Report of Accident" form (Exhibit F) that is useful for vehicle accidents. d. Witnesses, if found and interviewed promptly, may be the most important source of information in any investigation. Record their names, addresses, home and work phone numbers if at all possible. 1) Identifying witnesses is a critical part of an investigation. Do not limit yourself to those who remained on the scene. Discussions with those who are present may lead to others. A canvas of nearby businesses or homes may also prove fruitful. 2) If you choose to interview witnesses, they should be interviewed one at a time in as much privacy as possible. The accuracy of people's recall is highest immediately after the incident. Many things interfere with recall, including discussions with other witnesses, newspaper accounts or just poor memories. Where possible, the interviews should be conducted at the accident scene, which will allow the witnesses to point out what they consider significant. Remember that interviews of this type are fact finding. It is a good idea to point out to the witness that you are only concerned with the facts at this point, not in assessing blame. 3) The interview itself should be conducted in as relaxed an atmosphere as possible. It is far more important that the interviewer be a good listener than it is to think of good questions. Your goal is to get a general idea of what each witness will say, what he saw, and what value he will have as a witness. Take notes as unobtrusively as possible. It may be best to wait until the interview is over before writing anything down. Unless you have had formal training in taking written or recorded statements, we do not recommend that you attempt to do so. e. Facts are essential. 1) Please try to not put a spin or slant on your report. This creates delays, misunderstandings and tends to actually increase costs as it often results in needless litigation to arrive at the truth. 2) All evidence presented to the JPIA is used to make the appropriate decisions for the District. If you have done a comprehensive investigation, a written report outlining all of the evidence obtained may be of considerable value to JPIA and to the District. 3) The "Incident Report" and "Driver's Report of Accident" forms, while useful for simple situations, have obvious limitations in trying to report on a more complex or detailed investigation. No particular format is required. The goal is the complete and objective "what, when, where and who". B. LITIGATION 1. The JPIA will select and retain appropriate attorneys to defend the District. 2. When litigation begins, it is important all documents are immediately forwarded to JPIA as soon as they are received by the District. All litigation has a very rigid and usually short time frame in which to respond. Holding a summons or complaint can cause problems for the JPIA in defending the District. 6.0 RESPONSIBILITIES A. It is the responsibility of each employee: 1. To carefully read and follow the procedures outlined in this policy in order to prevent unnecessary exposure of the District to litigation. 2. To cooperate with the Risk Manager to protect the health, safety and life of District employees and the public. 3. To follow the procedures outlined in this policy in order to document any incidents. B. It is the responsibility of each Department Manager to ensure: 1. Their staff is versed in the procedures outlined in this policy and that their staff is aware of the importance of adhering to the procedures. 2. The Human Resources Department is made aware of any accidents or incidents impacting the District as soon as possible after the accident or incident, but no later than 24 hours after, so appropriate documents, forms and statements may be gathered and forwarded to JPIA and legal counsel. C. It is the responsibility of the Human Resources Manager to: 1. Contact the General Manager/Assistant General Manager to make them aware of any accidents or incidents that could cause an impact to the District. 2. Ensure contact is made with JPIA and/or legal counsel to apprise them of the possibility of claims against the District. 3. Ensure all materials: incident reports, notes, forms, photographs, witness statements, etc. are forwarded to JPIA and/or legal counsel. APPROVED: Kenneth R. Vecchiarelli Date General Manager 7020-09-06 Exhibit 1 ® Yorba Linda Water District Risk Management Claims Policy Acknowledgement Form I acknowledge that I have received and read the provisions contained in this Risk Management Claims Policy. I understand that it is my responsibility to consult my supervisor or the Human Resources Department if I have any questions that are not answered in the Policy. I also understand that the provisions in this Policy are guidelines and are not intended to be construed as all encompassing. I further understand that the Yorba Linda Water District reserves the right to add to, eliminate, or otherwise change, at any time, any of the provisions contained in this Policy. I understand that any changes will be communicated to me through my supervisor and that the General Manager has the authority to implement and interpret this Policy, and to make necessary changes. I understand that it is my responsibility to follow the provisions contained in this Policy and any subsequent modifications or amendment and failure to do so may result in disciplinary action or termination of employment or services. EMPLOYEE'S NAME (printed): EMPLOYEE'S SIGNATURE: DATE: Distribution: Original to Personnel File Copy: Employee ITEM NO. AGENDA REPORT Board Meeting Date: March 26, 2009 YTHEBOARD OFDIRECTORS OF THE YORBA LINDA WATER DISTRICT To: Board of Directors MAR 2 6 2009 From: Ken R. Vecchiarelli, General Manager K BY Prepared by: Gina Knight, Human Resources Manager Reviewed by General Counsel: Yes Budgeted: No Dept: Admin Funding Source: CEQA Account No: N/A Job No: N/A Compliance: N/A Estimated Costs: N/A Subject: Resolution 09-04, Employee-Employer Relations SUMMARY: Resolution 09-04 establishes ground rules and uniform methods of communications for future negotiations between employees, employee organizations and the Yorba Linda Water District. DISCUSSION: The District does not have a resolution in place which established reasonable rules, guidelines and regulations for the negotiation process with its recognized employee organizations. This resolution is customary for agencies that employ represented employees. Staff was assisted by Liebert Cassidy Whitmore, a Labor Relations Law firm, to develop the District's Employee- Employer Relations Resolution. The Resolution was reviewed by both the Personnel/Risk Management Committee and the District's Employee's Bargaining Unit Representatives. In summary, the resolution addresses the following: • Procedures for Meeting and Conferring • Filing Recognition Procedures by an Employee Organization • Employee Organization Election Procedures • Decertification Procedures of Recognized Employee Organizations • Employee Organization Activities - Use of District Resources • Impasse Procedures Staff met and consulted with the District's Bargaining Unit Representatives. At this time, staff is prepared to recommend the Board of Directors adopt the Resolution which defines the guidelines to be used during the meet and confer process so as to encourage more effective and successful good faith bargaining between employee organizations and the District. PRIOR RELEVANT BOARD ACTION(S): No prior action has been taken by the District's Board of Directors on this matter. STAFF RECOMMENDATION: That the Board of Directors adopt Resolution 09-04. COMMITTEE RECOMMENDATION: The Personnel/Risk Management Committee reviewed the Employee-Employer Relations Resolution on November 10, 2008 and supports staffs recommendation. RESOLUTION NO. 09-04 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT IMPLEMENTING CHAPTER 10, DIVISION 4, TITLE 1 OF THE GOVERNMENT CODE, STATE OF CALIFORNIA, "LOCAL PUBLIC EMPLOYEE ORGANIZATIONS" WHEREAS, the District wishes to implement Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned "Local Public Employee Organizations; and WHEREAS, the District intends to strengthen methods of administering employer- employee relations through the establishment of uniform methods of communications between employees, employee organizations and the Yorba Linda Water District, NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District to implement the following provisions. Article 1. General Provisions Section 1: Statement of Purpose This Resolution implements Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned "Local Public Employee Organizations," (the Meyers-Milias- Brown Act) by providing orderly procedures for the administration of employer-employee relations between the Yorba Linda Water District and its employee organizations. However, nothing contained herein shall be deemed to supersede the provisions of state law, ordinances, resolutions and rules which establish and regulate the merit and civil service system, or which provide for other methods of administering employer-employee relations. This Resolution is intended, instead, to strengthen merit, civil service and other methods of administering employer-employee relations through the establishment of uniform and orderly methods of communications between employees, employee organizations and the Yorba Linda Water District. It is the purpose of this Resolution to provide procedures for meeting and conferring in good faith with Recognized Employee Organizations regarding matters that directly and significantly affect and primarily involve the wages, hours and other terms and conditions of employment of employees in appropriate units and that are not preempted by federal or state law, or by the laws governing and/or creating the Yorba Linda Water District. However, nothing herein shall be construed to restrict any legal or inherent exclusive Yorba Linda Water District rights with respect to matters of general legislative or managerial policy, which include among others: The exclusive right to determine the mission of its constituent i departments, commissions, and boards; set standards of service; determine the procedures and standards of selection for employment; determine the rules and policies under which employment is to be managed; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other lawful reasons; determine the content of job classifications; subcontract work; maintain the efficiency of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. Section 2. Definitions As used in this Resolution, the following terms shall have the meanings indicated: a. "Appropriate unit" means a unit of employee classes or positions, established pursuant to Article II hereof. b. "District" means the Yorba Linda Water District, and, where appropriate herein, refers to the Board or any duly authorized District representative as herein defined. C. "Confidential Employee" means an employee who, in the course of his or her duties, has access to confidential information relating to the District's administration of employer-employee relations. d. "Consult/Consultation in Good Faith" means to communicate orally or in writing with all effected recognized employee organizations for the purpose of presenting and obtaining views or advising of proposed actions in a good faith effort to reach a consensus; and, as distinguished from meeting and conferring in good faith regarding matters within the required scope of the meet and confer process, does not involve an exchange of proposals and counterproposals in an endeavor to reach agreement in the form of a Memorandum of Understanding, nor is it subject to Article IV hereof. e. "Day" means calendar day unless expressly stated otherwise. f. "Employee Relations Officer" means the District Manager or his or her duly authorized representative. 2 i g. "Exclusively Recognized Employee Organization" means an employee organization that has been formally acknowledged by the District as the sole employee organization representing the employees in an appropriate representation unit pursuant to Article II hereof, having the exclusive right to meet and confer in good faith concerning statutorily required subjects pertaining to unit employees, and thereby assuming the corresponding obligation of fairly representing such employees. Such recognition status may not be challenged by another employee organization: 1) within twelve (12) months of such recognition and 2) to take effect during a Memorandum of Understanding having a term of up to three (3) years. h. "Impasse" means that the representatives of the District and a Recognized Employee Organization have reached a point in their meeting and conferring in good faith where their differences on matters to be included in a Memorandum of Understanding, and about which they are required to meet and confer, remain so substantial and prolonged that further meeting and conferring would be futile. i. "Management Employee" means an employee having responsibility for formulating, administering or managing the implementation of District policies and programs and/or an employee who exercises supervisory authority. j. "Proof of Employee Support" means: 1) an authorization card recently signed and personally dated by an employee, provided that the card has not been subsequently revoked in writing by the employee prior to its submission, 2) a verified authorization petition or petitions recently signed and personally dated by an employee or 3) employee dues deduction authorization, using the payroll register for the period immediately prior to the date a petition is filed hereunder, except that dues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as proof of employee support for any employee organization. The only authorization which shall be considered as proof of employee support hereunder shall be the authorization last signed by an employee. The words "recently signed" shall mean within ninety (90) days prior to the filing of a petition. k. "Supervisory Authority' means any employee having authority, in the interest of the District, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward or discipline other employees, or responsibly to direct them, or to adjust their grievances or effectively to recommend such action if, in connection with the 3 foregoing, the exercise of such authority is not of a merely routine or clerical nature but requires the use of independent judgment. 1. Terms not defined herein shall have the meanings as set forth in the Meyers-Milias-Brown Act. Article II. Representation Proceedings Section 1. Filing of Recognition Petition by Employee Organization An employee organization which seeks to be formally acknowledged as an Exclusively Recognized Employee Organization representing the employees in an appropriate unit shall file a petition with the Employee Relations Officer containing the following information and documentation: a. Name and address of the employee organization. b. Names and titles of its officers. C. Names of employee organization representatives who are authorized to speak on behalf of the organization. d. A statement that the employee organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the District. e. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner with, a local, regional, state, national or international organization and, if so, the name and address of each such other organization. f. Certified copies of the employee organization's constitution and bylaws. g. A designation of those persons, not exceeding two in number, and their addresses, to whom notice sent by regular United States mail will be deemed sufficient notice on the employee organization for any purpose. h. A statement that the employee organization has no restriction on membership based on race, color, religion, creed, sex, national origin, age, sexual orientation, mental or physical disability or medical condition. 4 L The job classifications or position titles of employees in the unit claimed to be appropriate and the approximate number of member employees therein. j. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the District. Such written proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party. k. A request that the Employee Relations Officer formally executing it acknowledge the petitioner as the Exclusively Recognized Employee Organization representing the employees in the unit claimed to be appropriate for the purpose of meeting and conferring in good faith. The Petition, including the proof of employee support and all accompanying documentation, shall be declared to be true, correct and complete, under penalty of perjury, by the duly authorized officer(s) of the employee organization. Section 2. District Response to Recognition Petition Upon receipt of the Petition, the Employee Relations Officer shall determine whether: a. There has been compliance with the requirements of the Recognition Petition, and b The proposed representation unit is an appropriate unit in accordance with Section 7 of this Article II. If an affirmative determination is made by the Employee Relations Officer on the foregoing two matters, he/she shall so inform the petitioning employee organization, shall give written notice of such request for recognition to the employees in the unit and shall take no action on said request for thirty (30) days thereafter. If either of the foregoing matters are not affirmatively determined, the Employee Relations Officer shall offer to consult thereon with such petitioning employee organization and, if such determination thereafter remains unchanged, shall inform that organization of the reasons therefore in writing. The petitioning employee organization may appeal such determination in accordance with Section 10, Article II of this Resolution. 5 Section 3. Open Period for Filing Challenging Petition Within thirty (30) days of the date written notice was given to affected employees that a valid recognition petition for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the exclusively recognized employee organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some but not all the classifications or positions set forth in the recognition petition being challenged) by filing a petition evidencing proof of employee support in the unit claimed to be appropriate of at least thirty (30) percent and otherwise in the same form and manner as set forth in Section 1 of this Article ll. If such challenging petition seeks establishment of an overlapping unit, the Employee Relations Officer shall call for a hearing on such overlapping petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. Thereafter, the Employee Relations Officer shall determine the appropriate unit or units in accordance with the standards in Section 6 of this Article II. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination is communicated to them by the Employee Relations Officer to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 10 of this Article Il. Section 4. Granting Recognition Without an Election If the proof of support shows that a majority of the employees in the appropriate unit have designated the petitioning employee organization to represent them, and if no other employee organization filed a challenging petition, the petitioning employee organization and the Employee Relations Officer shall request the California State Mediation and Conciliation Service, or another mutually agreed upon neutral third party, to review the count, form, accuracy and propriety of the proof of support. If the neutral third party makes an affirmative determination, the Employee Relations Officer shall formally acknowledge the petitioning employee organization as the Exclusive Recognized Employee Organization for the designated unit. Section 5. Election Procedure Where recognition is not granted, pursuant to Section 4, Article Il, the Employee Relations Officer shall arrange for a secret ballot election to be conducted by a party agreed to by the Employee Relations Officer and the concerned employee organization(s), in accordance with such party's rules and procedures subject to the provisions of this Resolution. All employee organizations that have duly submitted petitions, which have been determined to be in conformance with this Article ll, shall be included on the ballot. The ballot shall also reserve to employees the 6 choice of representing themselves individually in their employment relations with the District. Employees entitled to vote in such election shall be those persons employed in regular permanent positions within the designated appropriate unit who were employed during the pay period immediately prior to the date ending at least fifteen (15) days before the date the election commences, including those who did not work during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the District in the same unit on the date of the election. An employee organization shall be formally acknowledged as the Exclusively Recognized Employee Organization for the designated appropriate unit following an election or run-off election if it received a numerical majority of all valid votes cast in the election. In an election involving three or more choices where none of the choices receives a majority of the valid votes cast, a run-off election shall be conducted between the two choices receiving the largest number of valid votes cast with the rules governing an initial election being applicable to a run-off election. There shall be no more than one valid election under this Resolution pursuant to any petition in a 12-month period affecting the same unit. In the event that the parties are unable to agree on a third party to conduct an election, the election shall be conducted by the California State Mediation and Conciliation Service. Costs of conducting elections shall be borne in equal shares by the District and by each employee organization appearing on the ballot. Section 6. Procedure for Decertification of Exclusively Recognized Employee Organization A Decertification Petition alleging that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit may be filed with the Employee Relations Officer during the thirty (30) day period commencing one hundred twenty (120) days prior to the termination date of a Memorandum of Understanding then having been in effect less than three (3) years. A Decertification Petition may be filed by two or more employees or their representative or an employee organization and shall contain the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct and complete: a. The name, address and telephone number of the petitioner and a designated representative authorized to receive notices or requests for further information. 7 b. The name of the established appropriate unit and of the incumbent Exclusively Recognized Employee Organization sought to be decertified as a representative of that unit. C. An allegation that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit and any other relevant and material facts relating thereto. d. Proof of employee support that at least thirty (30) percent of the employees in the established appropriate unit no longer desire to be represented by the incumbent Exclusively Recognized Employee Organization. Such proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party within the time limits specified in the first paragraph of this Section. An employee organization may, in satisfaction of the Decertification Petition requirements hereunder, file a Petition under this Section in the form of a Recognition Petition that evidences proof of employee support of at least thirty (30) percent, that includes the allegation and information required under paragraph (c.) of this Section 6 and otherwise conforms to the requirements of Section 1 of this Article II. The Employee Relations Officer shall initially determine whether the Petition has been filed in compliance with the applicable provisions of this Article II. If his/her determination is in the negative, he/she shall offer to consult thereon with the representative(s) of such petitioning employees or employee organization and, if such determination thereafter remains unchanged, shall return such Petition to the employees or employee organization with a statement of the reasons therefore in writing. The petitioning employees or employee organization may appeal such determination in accordance with Section 10 of this Article II. If the determination of the Employee Relations Officer is in the affirmative, or if his negative determination is reversed on appeal, he/she shall give written notice of such Decertification or Recognition Petition to the incumbent Exclusively Recognized Employee Organization and to unit employees. The Employee Relations Officer shall thereupon arrange for a secret ballot election to be held on or about fifteen (15) days after such notice to determine the wishes of unit employees as to the question of decertification and, if a Recognition Petition was duly filed hereunder, the question of representation. Such election shall be conducted in conformance with Section 1 of this Article II. During the "open period" specified in the first paragraph of this Section 6, the Employee Relations Officer may on his/her own motion, when he/she has reason to believe that a majority of unit employees no longer wish to 8 be represented by the incumbent Exclusively Recognized Employee Organization, give notice to that organization and all unit employees that he/she will arrange for an election to determine that issue. In such event, any other employee organization may within fifteen (15) days of such notice file a Recognition Petition in accordance with this Section 6, which the Employee Relations Officer shall act on in accordance with this Section 6. If, pursuant to this Section 6, a different employee organization is formally acknowledged as the Exclusively Recognized Employee Organization, such organization shall be bound by all the terms and conditions of any Memorandum of Understanding then in effect for its remaining term. Section 7. Policy and Standards for Determination of Appropriate Units The policy objectives in determining the appropriateness of units shall be the effect of a proposed unit on: 1) the efficient operations of the District and its compatibility with the primary responsibility of the District and its employees to effectively and economically serve the public, and 2) providing employees with effective representation based on recognized community of interest considerations. These policy objectives require that the appropriate unit shall be the broadest feasible grouping of positions that share an identifiable community of interest. Factors to be considered shall be: a. Similarity of the general kinds of work performed, types of qualifications required and the general working conditions. b. History of representation in the District and similar employment; except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized. C. Consistency with the organizational patterns of the District. d. Effect of differing legally mandated impasse resolution procedures. e. Number of employees and classifications and the effect on the administration of employer-employee relations created by the separation of classifications and creation of multiple units. f. Effect on the classification structure and impact on the stability of the employer-employee relationship of dividing a single or related classifications among two or more units. 9 1 Notwithstanding the foregoing provisions of this Section, managerial, supervisory and confidential responsibilities, as defined in Sec. 2 of this Resolution, are determining factors in establishing appropriate units hereunder, and therefore managerial, supervisory and confidential employees may only be included in a unit consisting solely of managerial, supervisory or confidential employees respectively. Managerial, supervisory and confidential employees may not represent any employee organization which represents other employees. The Employee Relations Officer shall, after notice to and consultation with affected employee organizations, allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete modified classifications or positions from units in accordance with the provisions of this Section. The decision of the Employee Relations Officer shall be final. Section 8. Procedure for Modification of Established Appropriate Units Requests by employee organizations for modifications of established appropriate units may be considered by the Employee Relations Officer only during the period specified in Section 6 of this Article ll. Such requests shall be submitted in the form of a Recognition Petition and, in addition to the requirements set forth in Section 1 of this Article ll, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and standards set forth in Section 7 hereof. The Employee Relations Officer shall process such petitions as other Recognition Petitions under this Article Il. The Employee Relations Officer may by his own motion propose that an established unit be modified. The Employee Relations Officer shall give written notice of the proposed modification(s) to any affected employee organization and shall hold a meeting concerning the proposed modification(s), at which time all affected employee organizations shall be heard. Thereafter the Employee Relations Officer shall determine the composition of the appropriate unit or units in accordance with Section 7 of this Article II, and shall give written notice of such determination to the affected employee organizations. The Employee Relations Officer's determination may be appealed as provided in Section 10 of this Article. If a unit is modified pursuant to the motion of the Employee Relations Officer hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Exclusively Recognized Employee Organization for such new appropriate unit or units pursuant to Section 1 of Article Il. 10 Section 9. Procedure for Processing Severance Requests An employee organization may file a request to become the recognized employee organization of a unit alleged to be appropriate that consists of a group of employees who are already a part of a larger established unit represented by another recognized employee organization. The timing, form and processing of such request shall be as specified in Section 8 of Article II for modification requests. Section 10. Appeals An employee organization aggrieved by an appropriate unit determination of the Employee Relations Officer; or an employee organization aggrieved by a determination of the Employee Relations Officer that a Recognition Petition (Section 1, Article II), Challenging Petition (Section 3, Article II), Decertification Petition (Section 6, Article ll), Unit Modification Petition (Section 8, Article ll) or employees aggrieved by a determination of the Employee Relations Officer that a Decertification Petition (Section 6, Article II) or Severance Request (Section 9, Article II) ---has not been filed in compliance with the applicable provisions of this Article, may, within fifteen (15) days of notice of the Employee Relations Officer's final decision, request to submit the matter to mediation by the State Mediation and Conciliation Service, or may, in lieu thereof or thereafter, appeal such determination to the District's Board for final decision within fifteen (15) days of notice of the Employee Relations Officer's determination or the termination of mediation proceedings, whichever is later. Appeals to the District's Board shall be filed in writing with the Board's Secretary, and a copy thereof served on the Employee Relations Officer. The District's Board shall commence to consider the matter within thirty (30) days of the filing of the appeal. The District's Board may, in its discretion, refer the dispute to a non-binding third party hearing process. Any decision of the Board on the use of such procedure, and/or any decision of the Board determining the substance of the dispute shall be final and binding. Article III. Administration Section 1. Submission of Current Information by Recognized Employee Organizations All changes in the information filed with the District by an Exclusively Recognized Employee Organization under items a. through h. of its Recognized Petition under Section 1, Article II of this Resolution shall be submitted in writing to the Employee Relations Officer within fourteen (14) days of such change. tt Exclusively Recognized Employee Organizations that are party to an agency shop provision shall provide annually to the Employee Relations Officer and to unit members within 60 days after the end of its fiscal year the financial report required under Government Code Section 3502.5 (f) of the Meyers-Milias Brown Act. Section 2. Employee Organization Activities - Use of District Resources Access to District work locations and the use of District paid time, facilities, equipment and other resources by employee organizations and those representing them shall be authorized only to the extent provided for in Memoranda of Understanding and/or administrative procedures, shall be limited to lawful activities consistent with the provisions of this Resolution that pertain directly to the employer-employee relationship and not such internal employee organization business as soliciting membership, campaigning for office, and organization meetings and elections and shall not interfere with the efficiency, safety and security of District operations. Section 3. Administrative Rules and Procedures The District Manager is hereby authorized to establish such rules and procedures as appropriate to implement and administer the provisions of this Resolution after consultation with affected employee organizations. Article IV. Impasse Procedures Section 1. Initiation of Impasse Procedures: If the meet and confer process has reached impasse as defined in Section 2, Article I of this Resolution, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall then be scheduled promptly by the Employee Relations Officer. The purpose of such meeting shall be: a. To review the position of the parties in a final effort to reach agreement on a Memorandum of Understanding, and b. If the impasse is not resolved, to discuss arrangements for the utilization of the impasse procedures provided herein. 12 Section 2. Impasse Procedures Impasse procedures are as follows: a. If the parties agree to submit the dispute to mediation and agree on the selection of a mediator, the dispute shall be submitted to mediation. All mediation proceedings shall be private. The mediator shall make no public recommendation nor take any public position at any time concerning the issues. b. If the parties fail to agree to submit the dispute to mediation or fail to agree on the selection of a mediator, or fail to resolve the dispute through mediation within fifteen (15) days after the mediator commenced meeting with the parties, the parties shall submit the impasse to the Board of Directors for the Board's determination. Section 3. Costs of Impasse Procedures The cost for the services of a mediator, and other mutually incurred costs of mediation, shall be borne equally by the District and Exclusively Recognized Employee Organization. Article V. Miscellaneous Provisions Section 1. Construction This Resolution shall be administered and construed as follows: a. Nothing in this Resolution shall be construed to deny to any person, employee, organization, the District, or any authorized officer, body or other representative of the District, the rights, powers and authority granted by federal or state law (or District Charter provisions). b. This Resolution shall be interpreted so as to carry out its purpose as set forth in Article I. c Nothing in this Resolution shall be construed as making the provisions of California Labor Code Section 923 applicable to District employees or employee organizations, or of giving employees or employee organizations the right to participate in, support, cooperate or encourage, directly or indirectly, any strike, sickout or other total or partial stoppage or slowdown of work. In consideration of and as a condition of initial and continued employment by the District, employees recognize that any such actions by them are in violation of their conditions of employment except as expressly otherwise provided by legally preemptive state 13 or contrary local law. In the event employees engage in such actions, they shall subject themselves to discipline up to and including termination, and may be replaced, to the extent such actions are not prohibited by preemptive law, and employee organizations may thereby forfeit rights accorded them under District law or contract. Section 2. Severability If any provision of this Resolution, or the application of such provision to any persons or circumstances, shall be held invalid, the remainder of this Resolution, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. PASSED AND ADOPTED this day of , 2009 by the following called vote: AYES: NOES: ABSENT: ABSTAIN: John W. Summerfield, President ATTEST: Kenneth R. Vecchiarelli, Secretary Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. McCormick, Kidman and Behrens 14 ITEM NO. AGENDA REPORT APPROVED BY THE BOARD OF DIRECTORS a A DI Board Meeting Date: March 26, 2009 OFTHEYORBAL To: Board of Directors MAR 2 6 2009 From: Ken Vecchiarelli, General Manager BY t3A z/-/ Staff Contact: Pat Grady, Assistant General Manager /na I/OpN ~ Ali Cindy Botts, Management Analyst Reviewed by General Counsel: N/A Budgeted: N/A Total Budget: Funding Source: N/A CEQA Account No: N/A Job No: Compliance: N/A Estimated Costs: N/A Dept: Subject: Citizens Advisory Committee Appointments SUMMARY: Staff solicited applications to form a Citizens Advisory Committee, whose formation was authorized by the Board at the meeting held on February 26, 2009. The committee would provide valuable community input to Staff and the Board of Directors on upcoming issues such as the budget, implementation of the proposed conservation ordinance, the impact of water allocations on water rates and fees and other issues that will potentially affect the upcoming budget process. DISCUSSION: A total of 18 applications were submitted to the District. Staff reviewed each application and made additional calls to the applicants with follow-up questions. Based on schedule availability, occupation, city of residence and the type of District customer, Staff is recommending the following 15 individuals for appointment to the Citizens Advisory Committee: Richard A. Bogda (Landscaping Representative, Small Business Owner, experience with drought tolerant plants) Cheryl Y. Borden (Residential without Sewer service, Public Relations, Master Gardener, experience with drought tolerant plants) Carl W. Boznanski (Residential with Sewer service, Small Business Owner, past Yorba Linda Planning Commissioner, some knowledge of MWD water system) Neil J. Brine (Residential without Sewer service, Small Business Owner, experience with water treatment requirements) Oscar S. Bugarini (Residential without Sewer service, Project Manager, experience with Emergency Response System) i Janine A. Eggers (Residential with Sewer service, Homemaker, experience with political offices) William H. Guse (Landscaping Representative, Engineer, HOA Board member) Phil D. Hawkins (Residential with Sewer service, Small Business Owner, Hidden Hills resident, strong passion for Committee to address adequate water pressure issues) Robert W. Hoff (Residential with Sewer service, Small Business Owner, owns nearly 60 acres) Robert R. Kiley (Residential without Sewer service, Public Relations, experience in water service industry, some knowledge of MWD systems) Gary T. Melton (Commercial Representative, Small Business Owner) Gregory L. Meyers (Residential without Sewer service, Small Business Owner, experience with local Chamber of Commerce) Bridgid M. Newton (Residential without Sewer service, Homemaker, strong passion for water conservation, some knowledge of MWD systems) Gene E. Scearce (Residential without Sewer service, Engineer, current Public Library Commissioner, lifelong interest in water service and reliability) Howard C. Weber (Residential with Sewer service, Engineer, experience with public works systems) Staff believes that the composition of these particular committee members will give the greatest representative feedback for the community the District serves. Attached is a map depicting the location of the 15 members Staff is recommending. Should the Board of Directors appoint these 15 members, Staff will organize and facilitate the first meeting with the Committee, with each meeting open to the public and subject to the Brown Act. The frequency of the meetings will be determined by the Committee, based on input provided by Staff. It is anticipated the first meeting would be scheduled for early April/2009. Since the committee members will be serving as volunteers, compensation would not be applicable. PRIOR RELEVANT BOARD ACTION(S): On February 26, 2009, the Board of Directors approved the creation of the Citizens Advisory Committee and instructed Staff to begin the recruitment process. Additionally, in January of 1994, the Board of Directors at that time approved the formation of a Citizens Advisory Committee, also of 10 members to provide community input into the District's planning and financial processes. STAFF RECOMMENDATION: That the Board of Directors appoint the 15 members of the Citizens Advisory Committee as recommended by Staff. ® 2009 Citizens Advisory Committee Legend • Citizens Advisory COmmidee QYLWD Service Boundary _ LAKE 4 B ohc Pxv°e Parcel Q e'x Park Chino Hills Slale,Park City boundaries City of Brea — — City of Anaheim Cdy of Brea ,. � CM of Placentia City of Yorba Linda N`'„ ° • oeLwi`ARk "°m. °4, Street Canteriine O F 9y a IAN �R^ ..0" �Major E(p$ o OM-� i®I, W LpNEyIEy r 4! NWT 914MC MORY �r°'x4YWq^A`P 0 'fin eA5»NCN ORY = ° .6 9 x o City of Yorha Linda t .RDA LINOA3 �• § d J 3 p3 wuilm _ >5r Lq6 N a city, Placentia ORAxOE1N0 �^iM9f� g r v'.� � �� ° Ox9PLIN GOXPL LPN d 9AMPINPPNE�. �`�� 94vM /� 9 P r, Ohl 3 $ Er NpRPE •8.. a W,P Y 4MA C UYA R^.m g�PPi . � i City of Anaheim ° a 4 0. 0.�xE Y x+r t WIM Yorba Linda Water District 2009 Citizens Advisory Committee Applicant Profiles Lindon A. Baker (Residential with Sewer service, Engineer, City of YL CERT member, OCFA focus group member, strong passion for agency collaboration) Richard A. Bogda (Landscaping Representative, Small Business Owner, experience with drought tolerant plants) Cheryl Y. Borden (Residential without Sewer service, Public Relations, Master Gardener, experience with drought tolerant plants) Cad W. Boznanski (Residential with Sewer service, Small Business Owner, past Yorba Linda Planning Commissioner, some knowledge of MWD water system) Neil J. Brine (Residential without Sewer service, Small Business Owner, experience with water treatment requirements) Oscar S. Bugarini (Residential without Sewer service, Project Manager, experience with Emergency Response System) Janine A. Eggers (Residential with Sewer service, Homemaker, experience with political offices) Maurice W. Gallarda (Residential with Sewer service, Engineer, experience in water and wastewater industry) William H. Guse (Landscaping Representative, Engineer, HOA Board member) Phil D. Hawkins (Residential with Sewer service, Small Business Owner, Hidden Hills resident, strong passion for Committee to address adequate water pressure issues) Robert W. Hoff (Residential with Sewer service, Small Business Owner, owns nearly 60 acres) Robert R. Kiley (Residential without Sewer service, Public Relations, experience in water service industry, some knowledge of MWD systems) Gary T. Melton (Commercial Representative, Small Business Owner) Gregory L. Meyers (Residential without Sewer service, Small Business Owner, experience with local Chamber of Commerce) Marto M. Naber-Mole (Residential without Sewer service, Public Relations, experience with land development issues) Bridgid M. Newton (Residential without Sewer service, Homemaker, strong passion for water conservation, some knowledge of MWD systems) Gene E. Scearce (Residential without Sewer service, Engineer, current Public Library Commissioner, lifelong interest in water service and reliability) Howard C. Weber (Residential with Sewer service, Engineer, experience with public works systems) ITEM NO. AGENDA REPORT Board Meeting Date: March 26, 2009 To: Board of Directors From: Ken Vecchiarelli, General Manager Staff Contact: Cindy Botts, Management Analyst 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: Subject: Draft Water Conservation Ordinance SUMMARY: In response to the water supply situation, a draft water conservation ordinance has been developed, to take effect July 1, 2009. The Metropolitan Water District of Southern California (MWD) supports its retail agencies taking this proactive step for continued access to rebate program funds. DISCUSSION: The ordinance was drafted using a sample ordinance provided by MWD, and the majority of this ordinance is suggested, including some of the permanent conservation requirements and a penalties and violations section. Specific penalties are not mandatory portions of the ordinance, only the existence of a penalty and enforcement provision section. The specific penalties will be determined as Staff continues to research the legal enforcement capabilities of the District, with the assistance of legal counsel. Additionally, items in red ink are required for compliance with MWD's standards for this ordinance, items in blue ink are not required by MWD, but are required for Best Management Practice (BMP) 13: Water Waste Compliance, as established by the California Department of Water Resources through the California Urban Water Conservation Council (CUWCC). Including the BMPs with the ordinance is highly recommended by the Municipal Water District of Orange County (MWDOC). Lastly, items in black ink are suggestions put forth by Staff only. The following is a synopsis of the permanent restrictions and requirements related to water waste within the ordinance. These would be in effect year-round and regardless of the current water situation, unless overridden by stronger restrictions within the ordinance. • Irrigation of landscaping is prohibited between the hours of 8:00 a.m. and 6:00 p.m. 9 Irrigation of landscaping is limited to fifteen (15) minutes per station per day. • Irrigation of landscaping is prohibited during rain or when rain is forecasted for that day. • Runoff during irrigation of landscaping onto hard surfaces is prohibited. • Washing down of hard surfaces is prohibited. • All leaks and breaks are required to be fixed within three (3) days of notice. • Use of re-circulated water is required for all fountains and water features. • Washing of vehicles is prohibited unless with a bucket or similar container and sponge, or with a hose with a self-closing device. • Drinking water is to be served at restaurants upon request only. • Hotels and motels must provide customers the option to decline daily linen changes. • Installation of single pass cooling systems is prohibited in buildings requesting new water service. • Installation of non-re-circulating water systems is prohibited in new commercial laundry systems. • Restaurants are prohibited from using non-water conserving dish wash spray valves. • All new commercial conveyor car wash systems must have installed operational re- circulating water systems. In addition to permanent water conservation requirements, the ordinance also details four water supply shortage levels that implement further restrictions that the District can apply based on MWD's equivalent levels. This may require modification of the District's 2005 Urban Water Management Plan, in addition to a change of levels at the District's discretion. The following is a summary of each of the four water supply shortage levels, their MWD equivalent level and the corresponding restrictions: Level 1 Water Supply Shortage: • MWD "Condition 2: Water Supply Alert" level or District system capacity reduction, To Be Determined. • Irrigation of landscaping year-round is limited to Odd Days or Even Days, as set by District. Level 2 Water Supply Shortage: • MWD "Condition 3: Water Supply Allocation- Restrictions from 5% through 15V or District system capacity reduction, To Be Determined. • Irrigation of landscaping in the months of April through October is limited to three (3) days per week on a schedule posted by the District and in the months of November through March, is limited to two (2) day per week on a schedule posted by the District. • All leaks and breaks are required to be fixed within two (2) days of notice. Level 3 Water Supply Shortage: • MWD "Condition 3: Water Supply Allocation- Restrictions from 20% through 35%" or District system capacity reduction, To Be Determined. • Irrigation of landscaping in the months of April through October is limited to two (2) days per week on a schedule posted by the District and in the months of November through March, is limited to one (1) day per week on a schedule posted by the District. • Re-filling of more than one (1) foot and initial filling of residential swimming pools or outdoor spas is prohibited. Level 4 Water Supply Shortage- Emergency Condition: • MWD "Condition 3: Water Supply Allocation- Restrictions of 40% and greater" or District system capacity reduction, To Be Determined. • Irrigation of landscaping year-round is prohibited, with the exception of use of a hand-held bucket and maintenance for fire-protection, soil erosion or environmental mitigation projects. • All leaks and breaks are required to be fixed within one (1) days of notice. • No new water service will be provided, except to protect the public health, safety and welfare. Due to unique circumstances, should a District customer require an exemption from these restrictions, a Hardship Waiver can be submitted. The waiver could be granted, conditionally granted, or denied by the Management Analyst. A denied application could then be appealed to the General Manager and further appealed to the Board of Directors. A public hearing to accept comments on the proposed ordinance will be scheduled for either the first or second Board meeting in April 2009. Staff will continue to work with Public Information- Technology Committee on the accompanying Implementation Plan for public awareness. PRIOR RELEVANT BOARD ACTION(S): None. STAFF RECOMENDATION: The proposed ordinance is a draft and has been placed on the agenda for discussion purposes and to solicit comments from the Board of Directors. Action is not recommended at this time. COMMITTEE RECOMENDATION: This ordinance was reviewed by the Executive-Administrative-Organizational Committee on March 17, 2009. A corresponding Public Information Implementation Plan for the ordinance was reviewed by the Public Information- Technology Committee on March 19, 2009. ORDINANCE NO. XX-XX ORDINANCE OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT INSTITUTING WATER CONSERVATION MEASURES, PROHIBITION AGAINST WATER WASTE AND WATER SHORTAGE SUPPLY CONTINGENCIES WHEREAS, California has had one of the driest years on record, with eight of the past ten years meeting drought-level conditions; and WHEREAS, storage in the Colorado River system has dropped to fifty-five percent of total capacity; and WHEREAS, the flow of the California Aqueduct has been restricted by up to thirty- five percent, due to a federal court ruling to protect the Delta Smelt; and WHEREAS, the Governor of the State of California proclaimed a statewide drought and issued a State of Emergency to address the California water shortage, requesting that all water users reduce their water use by twenty (20) percent and asking all water agencies to assist their customers in reducing their use through a water conservation program; and WHEREAS, the Orange County Grand Jury investigated solutions into the looming water crisis in California and recommends in its report for local water agencies a goal of ten-percent voluntary conservation, a focus on outdoor usage, the development of monthly allocations for each customer and the implementation of conservation-inducing pricing; and WHEREAS, the Metropolitan Water District of Southern California is currently in a "Water Supply Alert" phase and urges implementation of "extraordinary conservation measures", such as conservation pricing, outdoor water restrictions, prohibition of runoff, enhanced rebates, and coordination with the Municipal Water District of Orange County to develop a unified regional message and to accelerate media and outreach campaigns. In addition, they are requiring ordinances from all agencies that receive rebate incentives detailing water conservation measures, prohibitions against water waste and associated penalties; and WHEREAS, the Municipal Water District of Orange County, the regional imported water provider, has enacted a resolution asking every Orange County resident and business to immediately reduce their water usage by ten- percent; and WHEREAS, the Orange County Water District has implemented the "OC Water Hero" public education campaign, urging customers to conserve twenty gallons of water per person, per day; and WHEREAS, the Yorba Linda Water District has broad authority to enact water conservation rules under the laws of the State of California; and WHEREAS, the adoption of water conservation measures would assist in avoiding or minimizing the effects of a water shortage in Southern California. NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the Yorba Linda Water District that all water users adopt the following water conservation measures, prohibition against water waste and water shortage supply conditions. These measures would be effective as of July 1, 2009. 1. Permanent Water Conservation Measures and Prohibitions Against Water Waste. The following water conservation requirements are effective at all times and are permanent. Violations of this section will be considered waste and an unreasonable use of water. a. Limits on Watering Hours: Watering or irrigation of lawn, landscape or other vegetated area is prohibited between the hours of 8:00 a.m. and 6:00 p.m. on any day, except for the express purpose of adjusting or repairing an irrigation system. b. Limit on Watering Duration: Watering or irrigating of lawn, landscape or other vegetated area is limited to fifteen (15) minutes watering per station per day. This subsection does not apply to landscape irrigation system that exclusively use very low-flow drip type irrigation system when no emitter produces more than two (2) gallons of water per hour and weather based controllers or stream rotor sprinklers that meet a 70% efficiency standard. c. No Watering During Rain: Watering or irrigating of lawn, landscape or other vegetated area is prohibited when it is currently raining and/or rain is forecasted for that day. d. No Excessive Water Flow or Runoff: Water or irrigation of any lawn, landscape or other vegetated area in a manner that cause or allow excessive water flow or runoff onto an adjoining sidewalk, driveway, street, alley, gutter or ditch is prohibited. e. No Washing Down Hard or Paved Surfaces: Washing down hard or paved surfaces, including but not limited to sidewalks, walkways, driveways, parking areas, tennis courts, patios or alley, is prohibited except when necessary to alleviate safety or sanitary hazards and then only by use of a hand-held bucket or similar container, a low-volume, high-pressure cleaning machine equipped to recycle any water used, or a low-volume high-pressure water broom. f. Obligation to Fix Leaks, Breaks, or Other Malfunctions: Excessive use, loss or escape of water through breaks, leaks or other malfunctions in the water user's plumbing or distribution system, including that of irrigation systems, for any period of time after such escape of water should have been reasonably been discovered and corrected and in no event more than three (3) days of receiving notice from the District, is prohibited. g. Re-circulating Water Required for Water Fountains and Decorative Water Features: Operating a water fountain or other decorative water feature that does not use re-circulated water is prohibited. h. Limits on Washing Vehicles: Using water to wash or clean a vehicle, including but not limited to any automobile, truck, van, bus, motorcycle, boat or trailer, whether motorized or not is prohibited, except by use of a hand- held bucket or similar container or a hand-held hose equipped with a positive self-closing water shut-off nozzle or device. This subsection does not apply to any commercial car washing facility. I. Drinking Water Served Upon Request Only: Eating or drinking establishments, including but not limited to a restaurant, hotel, cafe, cafeteria, bar, or other public place where food or drinks are sold, served, or offered for sale, are prohibited from providing drinking water to any person unless expressly requested. j. Commercial Lodging Establishments Must Provide Guests Option to Decline Daily Linen Services: Hotels, motels and other commercial lodging establishments must provide customers the option of not having towels and linen laundered daily. Commercial lodging establishments must prominently display notice of this option in each bathroom using clear and easily understood language. k. No Installation of Single Pass Cooling Systems: Installation of single pass cooling systems is prohibited in buildings requesting new water service. 1. No Installation of Non-re-circulating in Commercial Laundry Systems: Installation of non-re-circulating water systems is prohibited in new commercial laundry systems. m. Restaurants Required to Use Water Conserving Dish Wash Spray Valves: Food preparation establishments, such as restaurants or cafes, are prohibited from using non-water conserving dish wash spray valves. I n. Commercial Car Wash Systems: Effective on July 1, 2009, all new commercial conveyor car wash systems must have installed operational re- circulating water systems, or must have secured a waiver of this requirement from the District. 2. Level 1 Water Supply Shortage a. A Level 1 Water Supply Shortage exists when the District determines, in its sole discretion, and as outlined in the 2005 Urban Water Management Plan, that due to drought or other water supply conditions, a water supply shortage or threatened shortage exists and a consumer demand reduction is necessary to make more efficient use of water and appropriately respond to existing water conditions. Upon declaration of a Level 1 Water Supply Shortage, the conservation measures indentified in this section will become effective. b. Additional Water Conservation Measures: In addition to the prohibited uses of water identified as permanent water conservation measures and prohibitions against water waste, the following water conservation requirements apply during a declared Level 1 Water Supply Shortage unless superseded below: 1. Limits on Watering Days: Watering or irrigation of lawn, landscape or other vegetated area year-round is limited to three (3) days per week on a schedule posted by the District This subsection does not apply to landscape irrigation system that exclusively use very low- flow drip type irrigation system when no emitter produces more than two (2) gallons of water per hour and weather based controllers or stream rotor sprinklers that meet a 70% efficiency standard. 3. Level 2 Water Supply Shortage a. A Level 2 Water Supply Shortage exists when the District determines, in its sole discretion, and as outlined in the 2005 Urban Water Management Plan, that due to drought or other water supply conditions, a water supply shortage or threatened shortage exists and a consumer demand reduction is necessary to make more efficient use of water and appropriately respond to existing water conditions. Upon declaration of a Level 2 Water Supply Shortage, the conservation measures indentified in this section will become effective. b. Additional Water Conservation Measures: In addition to the prohibited uses of water identified as permanent water conservation measures and prohibitions against water waste, the following water conservation requirements apply during a declared Level 2 Water Supply Shortage unless superseded below: 1. Limits on Watering Days: Watering or irrigation of lawn, landscape or other vegetated area in the months of April to October is limited to three (3) days per week on a schedule posted by the District and in the months of November to March, is limited to two (2) day per week on a schedule posted by the District. This subsection does not apply to landscape irrigation system that exclusively use very low-flow drip type irrigation system when no emitter produces more than two (2) gallons of water per hour and weather based controllers or stream rotor sprinklers that meet a 70% efficiency standard. 2. Obligation to Fix Leaks, Breaks, or Other Malfunctions: Excessive use, loss or escape of water through breaks, leaks or other malfunctions in the water user's plumbing or distribution system for any period of time after such escape of water should have been reasonably been discovered and corrected and in no event more than two (2) days of receiving notice from the District, is prohibited. 4. Level 3 Water Supply Shortage a. A Level 3 Water Supply Shortage exists when the District determines, in its sole discretion, and as outlined in the 2005 Urban Water Management Plan, that due to drought or other water supply conditions, a water supply shortage or threatened shortage exists and a consumer demand reduction is necessary to make more efficient use of water and appropriately respond to existing water conditions. Upon declaration of a Level 3 Water Supply Shortage, the conservation measures indentified in this section will become effective. b. Additional Water Conservation Measures: In addition to the prohibited uses of water identified as permanent water conservation measures and prohibitions against water waste, the following water conservation requirements apply during a declared Level 3 Water Supply Shortage unless superseded below: 1. Limits on Watering Days: Watering or irrigation of lawn, landscape or other vegetated area in the months of April to October is limited to two (2) days per week on a schedule posted by the District and in the months of November to March, is limited to one (1) day per week on a schedule posted by the District. This subsection does not apply to landscape irrigation system that exclusively use very low-flow drip type irrigation system when no emitter produces more than two (2) gallons of water per hour and weather based controllers or stream rotor sprinklers that meet a 70% efficiency standard. 2. Limits on Filling Swimming Pools & Spas: Re-filling of more than one foot and initial filling of residential swimming pools or outdoor spas is prohibited. 5. Level 4 Water Supply Shortage- Emergency Condition a. A Level 4 Water Supply Shortage is also referred to as an "emergency" condition. A Level 4 Water Supply Shortage exists when the District declares, in its sole discretion, and as outlined in the 2005 Urban Water Management Plan, a water shortage emergency and notifies its residents and businesses that a significant reduction in consumer demand is necessary to maintain sufficient water supplies for public health and safety. Upon declaration of a Level 4 Water Supply Shortage, the conservation measures indentified in this section will become effective. b. Additional Water Conservation Measures: In addition to the prohibited uses of water identified as penmanent water conservation measures and prohibitions against water waste, the following water conservation requirements apply during a declared Level 4 Water Supply Shortage: 1. No Watering or Irrigating: Watering or irrigating of lawn, landscape or other vegetated area with potable water is prohibited. This restriction does not apply to the following categories of use: i. Maintenance of vegetation, including trees and shrubs, that are watered using a hand-held bucket or similar container, hand- held hose equipped with a positive self-closing water shut-off nozzle or device; ii. Maintenance of existing landscape necessary for fire protection; iii. Maintenance of existing landscape for soil erosion control; iv. Actively irrigated environmental mitigation projects. 2. Obligation to Fix Leaks, Breaks, or Other Malfunctions: Excessive use, loss or escape of water through breaks, leaks or other malfunctions in the water user's plumbing or distribution system for any period of time after such escape of water should have been reasonably been discovered and corrected and in no event more than one (1) day of receiving notice from the District, is prohibited. 3. No New Water Service: Upon declaration of a Level 4 Water Supply Shortage Emergency condition, no new water service will be provided and no new temporary meters or permanent meters will be provided, except as is necessary to protect the public health, safety, and welfare. 6. Hardship Waver a. Undue and Disproportionate Hardship: If, due to unique circumstances, a specific requirement of this chapter would result in undue hardship to a person using water or to property upon which water is used, that is disproportionate to the impacts to water users generally or to similar property or classes of water users, then the person may apply for a waiver to the requirements as provided in this section. b. Written Finding: The waiver may be granted or conditionally granted only upon a written finding of the existence of facts demonstrating an undue hardship to a person using water or to property upon which water is used, that is disproportionate to the impacts to water users generally or to similar property or classes of water use due to specific and unique circumstances of the user or the user's property. 1. Application: Application for a waiver must be on a form prescribed by the Yorba Linda Water District and accompanied by a $25 non- refundable processing fee. 2. Supporting Documentation: The application must be accompanied by photographs, maps, drawings, and other information, including a written statement of the applicant. 3. Required Findings for Waiver: An application for a waiver will be denied unless the Board of Directors finds, based on the information provided in the application, supporting documents, or such additional information as may be requested, and on water use information for the property as shown by the records of the District, all of the following: i. That the waiver does not constitute a grant of special privilege inconsistent with the limitations upon other residents and businesses; ii. That because of special circumstances applicable to the property or its use, the strict application of this chapter would have a disproportionate impact on the property or use that exceeds the impacts to residents and businesses generally; iii. That the authorizing of such waiver will not be of substantial detriment to adjacent properties, will not be detrimental to the public interest; and iv. That the condition or situation of the subject property or the intended use of the property for which the waiver is sought is not common, recurrent or general in nature. 4. Approval Authority: The Management Analyst must act upon any completed application no later than seven (7) days after submittal and may approve, conditionally approve, or deny the waiver. The applicant requesting the waiver must be promptly notified in writing of any action taken. Unless specified otherwise at the time a waiver is approved, the waiver will apply to the subject property during the period of the mandatory water supply shortage condition. The decision of the Management Analyst can be appealed to the General Manager by written notice within seven (7) days of the date of the denied waiver. The General Manager must act upon any completed intent to appeal within seven (7) days of the District's receipt of the applicant's intent to appeal. The decision of the General Manager can be appealed to the Board of Directors by written notice within seven (7) days of the date of the denied waiver. Upon receipt of the applicant's secondary intent to appeal, the applicant will be notified as to the date of their appeal before the Board of Directors. 7. Penalties and Violations a. Penalties: The specks of any and all penalties is to be determined, contingent upon the District's legal abilities to enforce said penalties. b. Notice and Hearing: The specifics of notices and hearing is to be determined, contingent upon the District's legal requirements. PASSED AND ADOPTED this XX`h day of XXXX, 2009 by the following called vote: AYES: NOES: ABSENT: ABSTAIN John W. Summerfield, President ATTEST: i Kenneth Vecchiarelli, Secretary ITEM NO. 130- MINUTES OF THE YORBA LINDA WATER DISTRICT EXECUTIVE-ADMINISTRATIVE-ORGANIZATIONAL COMMITTEE MEETING March 17, 2009 A meeting of the Executive-Administrative-Organizational Committee was called to order by Director Summerfield at 8:00 a.m. The meeting was held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia, California. COMMITTEE STAFF Director John Summerfield, Chair Pat Grady, Assistant General Manager Director William R. Mills Cindy Botts, Management Analyst PUBLIC COMMENTS None. ACTION ITEMS 1. Water Conservation Ordinance Mr. Grady introduced a draft of the water conservation ordinance to the Committee and outlined the procedure and staffs tentative schedule for its adoption. Ms. Botts reviewed the ordinance in detail with the committee. Items of discussion included the trigger points for the various water shortage levels based on the District's Urban Water Management Plan, penalties and fines, the schedule for limiting watering hours, and the waiver and appeals process. Staff will continue to make modifications to the draft ordinance pending clarification from legal counsel on certain areas and present the first draft for discussion at the March 26w Board meeting. DISCUSSION ITEMS 2. Report on Legislative Activities - Sacramento Advocates 3. Report on Grant Activities - Townsend Public Affairs 4. General Counsel's Monthly Summary Billing Reports Mr. Grady indicated the legislative reports and legal counsel's billing report, included within the Committee's packet were routine in nature. There were no questions or further discussion from the Committee on these items. ADJOURNMENT The Committee adjourned at 10:15 a.m. The next meeting of the Executive- Administrative-Organizational Committee will be held April 21, 2009 at 4:00 p.m. 1 ITEM NO. jab MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING March 13, 2009 A meeting of the Finance-Accounting Committee was called to order by Director Beverage at 9:00 a.m. The meeting was held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia, California. COMMITTEE STAFF Director Michael J. Beverage, Chair Pat Grady, Assistant General Manager Director John W. Summerfield Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant ACTION ITEMS 1. Independent Accountants' Report on Applying Agreed-Upon Procedures for the Cash-Out Audit of Michael A. Payne, Former General Manager. Report by Nitin Patel, CPA of Diehl, Evans & Company. Mr. Patel presented the Independent Accountants' Report for a cash-out audit on the general manager's retirement as of 12/30/08. The findings reported that everything was handled properly and the report was accepted, with the only change being consistency in the use of decimal points in the dollar figures. 2. Independent Accountants' Report on Applying Agreed-Upon Procedures for Arbitrage Calculation on 2003 Certificates of Participation. Arbitrage Calculation prepared by Stephanie Seroogy of Grant Thornton, LLP. The report was accepted as presented. 3. Investment Report ending January 31, 2009. The Investment Report was reviewed and accepted as presented. 4. Monthly Financial Statements for the Period ending January 31, 2009. The Financial Statements were reviewed and accepted as presented. DISCUSSION ITEMS 5. Monthly Portfolio Report ending February 28, 2009. Report by Keith Khorey, Wells Capital Management. The Committee decided not to contact Mr. Khorey. There was no substantial change in our investments with Wells Capital, and Mr. Khorey had informed the Finance Director that there were no concerns at the present time. ADJOURNMENT The Committee adjourned at 9:30 a.m. The next meeting of the Finance-Accounting Committee will be held April 14, 2009 at 4:00 p.m. 1 l ITEM NO. 13op- MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC INFORMATION-TECHNOLOGY COMMITTEE MEETING March 19, 2009 A meeting of the Public Information-Technology Committee was called to order by Director Collett at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia, California. COMMITTEE STAFF Director Ric Collett, Chair Pat Grady, Assistant General Manager Director Michael J. Beverage Cindy Botts, Management Analyst PUBLIC COMMENTS None Guests present: Julienne Chene (Avant Garde, Inc.) and Bill Guse (Resident) ACTION ITEMS 1. 2009 Newsletter Campaign Ms. Botts introduced Julienne Chene of Avant Garde and spoke to the Committee about why the District was recommending Avant Garde for a period of two newsletters. Director Beverage questioned Ms. Chene about her company and Director Collette asked to see examples of her previous work. The Committee approved the proposal with Avant Garde for a period of two newsletters. Ms. Chene left the meeting after this item was completed. 2. Water Conservation Ordinance Implementation Plan Bill Guse, a resident within the District and an applicant for the Citizens Advisory Committee, asked the Committee for a brief summary on upcoming water rates and the current water situation. Both Directors responded. Mr. Guse left after his questions were answered. Mr. Grady introduced this item and stated that the Executive-Administration- Organizational Committee previously met to review and discuss the contents of the proposed conservation ordinance and that the focus of the Public Information Technology Committee should be solely the public information and implementation aspect. Ms. Botts presented the current "shopping list" of possible Implementation Items for the upcoming Water Conservation Ordinance and the Directors both suggested that radio ads would not be necessary and dependant upon legal requirements for notification of violations, the budgeted amount for postage on violation may have to be increased. Additionally, Director Beverage suggested bill inserts every month through the next fiscal year and the use of mobile signs to alert the community to the specific Water Alert Level. 1 DISCUSSION ITEMS 3. Update on Current Public Relations Activities Ms. Botts reported on recent media interviews, a recent toilet rebate scam, the billing change over bill insert and the possibility of the upcoming annual report to be done on CD rather than paper. 4. Update on New Financial and Utility Billing Software Mr. Grady reported that additional training and additional modules were currently being implemented in the areas of inventory and accounts payable with purchasing and project management to follow. Completion of the Utility Billing Software is expected to be completed by July or August 2009. 5. Update on Electronic Imaging and Agenda Automation Software Mr. Grady reported that the Electronic Imaging was ongoing and that due to the large amount of information still needed to be uploaded to the database, he would submit a request for additional funding for temporary staff to continue this project into the next fiscal year. Mr. Grady also reported that with the Agenda Automation Software, current agendas, including this meeting's agenda, will be done in the parallel to ensure that all the "bugs" are worked out prior to going live to automatic agendas. ADJOURNMENT The Committee adjourned at 5:40 p.m. The next meeting of the Public Information- Technology Committee will be held May 5, 2009 at 4:00 p.m. 2 Orange County Water Summit - Event Registration by Acteva Pagel of3 ITEM NO. OCWD Appmum BY THE BOARD Of Of THEYONBALINDAWATERD STRICTB MAR 2 6 2009 BY OWATER SUMMIT Orange County Water Summit Location: Date: Grand Californian Hotel, Friday, May 15, 2009 Disneyland Resort 7:30 AM - 1:30 PM 1600 S. Disneyland Drive Anaheim, CA 92803 Details ® B00KMRRK Offil, IM9 MU WATER ORANGE COUNTY of TRICT BUSINESS COUNCIL A0i cRar,ae OO4jNTy 0 SINCE 1933 Join the Orange County Water District, Municipal Water District of Orange County, and the Orange County Business Council for the second O.C. Water Summit on May 15, 2009 to address urgent water supply issues and make sure southern California's water supplies are protected. More than 400 business professionals, water agencies and elected officials will be brought together at the Grand Californian Hotel in Anaheim to examine impacts that limited water supplies will have on southern California businesses and what we all need to do to ensure water reliability. Ticket Please indicate the quantity you would like for each type of ticket shown below. Then click on "Continue" to confirm your order selections and total. After that we will ask for your name and address information and your payment information to complete your order on our secure server. http://www.acteva.com/booking.cfin?bevalD=l 71544&CFID=15002387&CFTOKEN=25... 3/12/2009 Orange County Water Summit - Event Registration by Acteva Page 2 of 3 Attendee A one-day ticket for the O.C. Water Summit 462 tickets available includes continental breakfast, lunch, parking and an event program. orde at $95.00 each Attendee paying by check A one-day ticket for the O.C. Water Summit includes continental breakfast, lunch, parking and an event program. To pay by check, complete the online form and bring a check payable to the Orange County Water 462 tickets available District to the event on Friday, May 15 in the amount of $95.00. Your online Order O confirmation will read a balance of $0 as you are not paying online but bringing a check the day of the event. Activity Questionnaire OCWD has requested that Its customers provide the following Information to better help it fulfill your order. Required questions must be answered In order to complete your order. How did year hear about the O.C. Water Summit? What industry do you work in? **Required If you have a promotion code, enter it here Continue Clear Entries OCWD Purchase/refund policy: Registration Cancellation by Orange County Water Summit The Orange County Water Summit reserves the right to cancel an event due to low enrollment or other circumstances which would make the event non-viable. If the Orange County Water Summit cancels an event, registrants will be offered a full refund. Should circumstances arise that result In the postponement of an event, registrants will have the option to either receive a full refund or transfer registration to the same event at the new, future date. Registration Cancellation by Participant Unless specifically stated on registration materials, the deadline to receive a refund for your registration is 14 business days before the event. Cancellations received after the stated deadline will be eligible for a refund less a $25.00 cancellation fee. 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