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HomeMy WebLinkAbout2017-03-28 - Board of Directors Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, March 28, 2017, 6:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL J. Wayne Miller, President Al Nederhood, Vice President Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director 4. ADDITIONS/DELETIONS TO THE AGENDA 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports 6. 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 three minutes. 7. 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. 7.1. Minutes of the Board of Directors Regular Meeting held December 22, 2016 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Workshop Meeting held January 9, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,046,651.81. 7.4. ACWA/JPIA Property Program Renewal Billing Recommendation: That the Board of Directors authorize payment to ACW4/JP1A in the amount of $45,708 for renewal of the District's property insurance coverage for the period April 1, 2017 to April 1, 2018. 7.5. Declaration of Restrictive Covenants with Toll CA III, LLC for Tract 17654 Recommendation: That the Board of Directors authorize the President and Secretary to execute the Declaration of Restrictive Covenants with To// CA 111, LLC for Tract 17654. 8. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 8.1. Establishing a Joint Powers Authority for the Purpose of Selling Revenue Bonds Recommendation: That the Board of Directors authorize staff to work with the Financing Team to establish a Joint Powers Authority called the "Yorba Linda District Financing Authority" in order to complete the process of issuing Revenue Bonds as part of the advance refunding opportunity. 8.2. Supporting Association of California Water Agencies Policy Statement on Bay -Delta Flow Requirements Recommendation: That the Board of Directors adopt Resolution No. 17-09 in support of the Association of California Water Agencies policy statement on the Bay -Delta flow requirements. 9. 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. 9.1. Budget to Actual Statements for the Month Ending February 28, 2017 9.2. Cash and Investments Report for Period Ending February 28, 2017 9.3. CA Supreme Court Decision Regarding Application of Public Records Act to Personal Devices 10. REPORTS. INFORMATION ITEMS. AND COMMENTS 10.1. Directors' Reports 10.2. General Manager's Report 10.3. General Counsel's Report 10.4. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) • Minutes of meeting held March 23, 2017 at 4:00 p.m. (To be provided when available). • Next meeting yet to be scheduled. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) • Minutes of the meeting held March 13, 2017 at 4:00 p.m. (To be provided when available.) • Next meeting scheduled June 12, 2017 at 4:00 p.m. at YL City Hall. 11.3. Interagency Committee with City of Placentia and Golden State Water Company (Miller/Nederhood) • Next meeting yet to be scheduled. 11.4. Ad Hoc Citizens Advisory Committee • Minutes of meeting held March 8, 2017 at 6:00 p.m. • Minutes of meeting held March 21, 2017 at 7:00 p.m. (To be provided when available.) • Next meeting scheduled March 30, 3017 at 6:00 p.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. MWDOC Board -March 15, 2017 (Nederhood) 12.2. OCWD Board - March 15, 2017 (Jones) 12.3. YL Planning Commission - March 15, 2017 (Hawkins - As Needed) 12.4. OCSD Board - March 22, 2017 (Hawkins/Jones) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from March 29, 2017 - June 30, 2017 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS This section of the agenda is for the Board of Directors to authorize Director attendance at the listed events. 14.1. MWDSC Spring Green Expo - April 20, 2017 Meet ACWA's President - April 27, 2017 Santa Ana River Watershed Conference - May 25, 2017 Recommendation: That the Board of Directors approve Director attendance at these events if desired. 15. ADJOURNMENT 15.1. The next Regular Board of Directors Meeting will be held Tuesday, April 11, 2017. Closed Session (if necessary) will begin at 5:30 p.m. and regular business at 6:30 p.m. 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 http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability -related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning 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. AGENDA REPORT Meeting Date: March 28, 2017 ITEM NO. 7.1 Subject: Minutes of the Board of Directors Regular Meeting held December 22, 2016 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name: Description: Type: 2016-12-22 - Minutes - BOD.doc Minutes Minutes 2016 -XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, December 22, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The December 22, 2016 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Miller at 8:31 a.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. 2. PLEDGE OF ALLEGIANCE President Miller led the pledge. 3. ROLL CALL DIRECTORS PRESENT J. Wayne Miller, President Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director DIRECTORS ABSENT Al Nederhood, Vice President 4. STAFF PRESENT Marc Marcantonio, General Manager Steve Conklin, Engineering Manager John DeCriscio, Operations Manager Gina Knight, HR/Risk and Safety Manager Delia Lugo, Finance Manager Damon Micalizzi, Public Information Manager Art Vega, Information Technology Manager Annie Alexander, Executive Secretary Cindy Botts, Water Consv Sup/Mgmt Analyst Javier Martinez, Water Production Supt Laurie McAllister, Records Mgmt Admin Kelly McCann, Senior Accountant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Gene Hernandez, Mayor Pro Tem, City of Yorba Linda ADDITIONS/DELETIONS TO THE AGENDA 4.1. Third Request for Letter of Support for City of Anaheim's Prop 1 Stormwater Improvement Grant Application — California Urban Rivers Grant Program Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. Mr. Marcantonio requested to add this matter to the agenda as Item No. 10.3. as it came to staff's attention subsequent to posting the agenda and required immediate action. Director Hawkins made a motion, seconded by Director Jones, to add this matter to the agenda as Item No. 10.3. as it came to staff's attention subsequent to posting the agenda and required immediate action. Motion carried 4-0-0-1 with Director Nederhood being absent. Mr. Marcantonio noted that additional backup material had been provided to the Board and members of the public for Item Nos. 9.4. and 11.1. President Miller wished everyone present a happy holiday season on behalf of the Board. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Director Barbre wished everyone a happy holiday season and distributed a list of water providers in Orange County which included each agency's sources for import water and groundwater, and number of connections. He then reported on the status of recent legislation and statewide water supply conditions and responded to questions from the Board regarding MWDOC's water efficiency programs. Mayor Pro Tem Hernandez commented on the decreased water consumption in Yorba Linda despite population growth over the last ten years due to technological advances. He noted that the City's liaisons to the District would be determined at the next Council meeting. 6. PUBLIC COMMENTS Mr. Ben Parker, resident, commented on the results of the election, and the importance of transparency and efficiency in relation to District operations. Dr. Jeff Decker, resident, asked for clarification regarding the timing of public comments related to Item No. 8.1. 7. CLOSED SESSION The meeting was adjourned to Closed Session at 8:46 a.m. All Directors in attendance were present. Also present was Mr. Gagen and Mrs. Knight. Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 2 1.1 7.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 7.2. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative Unrepresented Employee: Andrew Gagen, General Counsel General Manager The Board reconvened in Open Session at 9:15 a.m. ACTION CALENDAR 8.1. Proposed Amendments to the General Manager's Employment Agreement Mr. Gagen stated that the General Manager (GM) had recently received a salary increase and that the discussion during Closed Session was strictly related to the GM's benefits. The Board discussed extending the GM's employment agreement for 3 years and restructuring his severance pay to 6 months the first year, 5 months the second year, and 4 months the third year of the contract. Furthermore, the Board discussed providing the GM with an additional 40 hours of compensatory time for the first year of the contract. Mr. Gagen indicated that Mr. Marcantonio was willing to accept the proposed terms. President Miller opened the floor for public comment. Dr. Jeff Decker, resident, commented on his personal work experience and the new Board's relationship with the GM. He also spoke against extending the GM's employment agreement at this time. Mr. Ben Parker, resident, commented on the proposed amendments to the GM's employment agreement and establishing goals and objectives for which to evaluate his performance. Mrs. Cristy Parker, resident, suggested that a provision in the GM's proposed employment agreement requiring reimbursement of severance pay upon conviction of a work related crime be revised to include certain forms of misconduct. Mr. Jim Wohlt, resident, commented on his personal work experience, the agenda report for the proposed amendment to the GM's employment agreement, and costs related to retirement. He also remarked on situations at the City of Vernon and City of Bell resulting in the indictment Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 3 of previous managers and his estimations of the GM's future retirement benefit. President Miller provided an overview of the negotiation process and financial data considered by the Board in relation to the proposed amendments to the GM's employment agreement. He noted that the cost for 3 additional months of severance pay was equal to or less than the cost of recruitment for this position. He also commented on the importance of maintaining the stability of District operations. Director Hall commented on events over the last few years and the need for stability during the new Board's transition. He also remarked on the number of issues occurring at the state level and expressed his concern should the GM's position become vacant. He then commented on the future evaluation of the GM's and District's overall performance. Director Hawkins commented on the terms in the original proposed amendment to the GM's employment agreement and noted that Vice President Nederhood had participated in the negotiation process via teleconference at the previous meeting. He also stated that he was looking forward to continue working with Mr. Marcantonio. Director Jones stated that the provision in the GM's employment agreement mentioned by Mrs. Parker might need to be reviewed. He also commented on the appreciative sentiments expressed by Mr. Marcantonio's direct reports and the previous Board as well as the importance of maintaining the District's operational stability. President Miller commented on the positive feedback he had received from Mr. Marcantonio's direct reports and colleagues in the Orange County area regarding his performance. Mrs. Knight stated that the proposed amendment to the GM's employment agreement had been drafted by the District's labor counsel, Liebert Cassidy Whitmore. She provided an overview of the purpose of severance pay for high-level executive positions and caps instituted by CalPERS on contribution and retirement amounts for PEPRA employees. She also commented on the process required for increasing an employee's salary and responded to questions from the Board regarding the retirement formula for PEPRA employees and the estimated amount of Mr. Marcantonio's annual pension after 6 years of employment. Director Hawkins made a motion, seconded by Director Hall, to accept the proposed amendments to the General Manager's employment agreement as negotiated by Mr. Gagen with Mr. Marcantonio, namely, the provision of an additional 40 hours of compensatory time for the first year of the contract, extending the term of the contract for 3 years, and restructuring Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 4 the severance pay to 6 months for the first year, 5 months for the second year, and 4 months for the third year of the contract. Motion carried 4-0-0-1 with Director Nederhood being absent. 9. CONSENT CALENDAR Mr. Ben Parker, resident, suggested that the Board form a Finance Committee in order to review the District's expenditures. He also commented on the District's budget to actual statements, cash on hand, and reserves. Mrs. Susan Decker, resident, made suggestions related to the District's bid announcement process. Dr. Jeff Decker, resident, commented on the District's financial statements and the importance of transparency. The Board briefly discussed handling items on the Consent Calendar. Staff then responded to questions from the Board regarding multiple items on the Consent Calendar. Director Hawkins made a motion, seconded by Director Jones, to approve the Consent Calendar. Motion carried 4-0-0-1 with Director Nederhood being absent. 9.1. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,038,649.11. 9.2. Budget to Actual Statements for the Month Ending November 30, 2016 Recommendation: That the Board of Directors receive and file the Budget to Actual Statements for the Month Ending November 30, 2016. 9.3. Cash and Investment Report for Period Ending November 30, 2016 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Month Ending November 30, 2016. 9.4. Hydrogeologic and CEQA Services for Well 22 Drilling and Construction Support Recommendation: That the Board of Directors authorize execution of a Professional Services Agreement with CDM in the amount of $219,135 to provide Hydrogeologic and CEQA Services for Well 22 Drilling and Construction Support. Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 5 9.5. Request to File the Notice of Completion for the 2016 Sewer Main CIPP Rehabilitation Project Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for construction of the 2016 Sewer Main CIPP Rehabilitation Project, Job No. J2015 -10S. 9.6. District Landscape Contract Recommendation: That the Board of Directors authorize the General Manager to execute a 3 -year maintenance contract with Brightview Landscape, Inc. for a total estimated cost of $63,900 (excluding potential costs related to equipment repairs, landscape replacement, and annual OC Consumer Price Index multiplier adjustments). 9.7. Uniform Contract Award Recommendation: That the Board of Directors authorize the General Manager to execute a 3 -year supply contract with Aramark Uniform Service for a total estimated cost of $30,370.08 (excluding potential costs related to uniform sizing and replacement and annual OC Consumer Price Index multiplier adjustments). 9.8. Claim for Damages Filed by Kari and Jason Buck Recommendation: That the Board of Directors reject and deny the claim filed by Kari and Jason Buck. 10. ACTION CALENDAR CONTINUED 10.1. Committee, Agency and Intergovernmental Meeting Assignments Mr. Marcantonio explained that after receiving feedback from each of the Directors, President Miller had submitted these assignments for the Board's consideration. President Miller requested to revise the assignment for the YLWD/MWDOC/OCWD Interagency Committee to list himself and Vice President Nederhood. Director Hawkins suggested that all Directors be preauthorized to attend the WACO and ISDOC meetings. The Board agreed. Director Hawkins made a motion, seconded by Director Jones, to approve the committee, agency and intergovernmental meeting assignments as revised. Motion carried 4-0-0-1 with Director Nederhood being absent. Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 6 11 President Miller indicated that Director assigned attendance at future Citizens Advisory Committee meetings would be considered following discussion of Item No. 11.2. 10.2. Well 15 Repairs and Modifications Mr. DeCriscio explained the issues with Well 15 requiring repair and modification. He then provided a general history of the well and along with other staff, responded to questions from the Board. Director Hawkins made a motion, seconded by Director Jones, to authorize the General Manager to approve a purchase order in the amount of $85,506 for repairs and modifications needed for Well 15 to be conducted by Best Drilling and Pump, Inc. Motion carried 4-0-0-1 with Director Nederhood being absent. 10.3. Third Request for Letter of Support for City of Anaheim's Prop 1 Stormwater Improvement Grant Application — California Urban Rivers Grant Program Mr. Conklin explained that the City of Anaheim had requested a letter of support from the District for the City's Stormwater Improvement Grant Application to the California Urban Rivers Grant Program. The previous Board approved similar letters for separate grants addressed to the Natural Resources Agency and State Water Resources Control Board. Director Hawkins made a motion, seconded by Director Hall, to direct the General Manager to execute the letter as presented and forward it to the City of Anaheim. Motion carried 4-0-0-1 with Director Nederhood being absent. DISCUSSION ITEMS 11.1. Rescheduling Time of Regular Board Meetings Mr. Marcantonio explained that this item had been placed on the agenda to provide the Board with an opportunity to discuss the regular meeting times. Mrs. Knight provided an overview of estimated costs associated with changing the time of the regular meetings to later in the day. The Board then discussed moving the regular meeting times to the late afternoon or early evening and mirroring the City Council's schedule with Closed Session beginning at 5:30 p.m. and regular business at 6:30 p.m. Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 7 President Miller suggested that the Board discuss the format of regular meetings in the near future. Mr. Ben Parker, resident, expressed his opinion regarding evening meetings. Staff was instructed to prepare an action item for the Board's consideration to reschedule the time of regular meetings so that Closed Session, if necessary, would begin at 5:30 p.m. and regular business at 6:30 p.m. 11.2. Overview of Citizens Advisory Committee Mr. Micalizzi provided an overview of the Citizens Advisory Committee's (CAC) purpose and history and responded to questions from the Board. The Board then discussed the possibility of disbanding the current committee, establishing a new Ad Hoc CAC with a specific purpose and fixed duration, and the impact of Director attendance at committee meetings. Dr. Jeff Decker, resident, commented on the Governor's conservation mandate, the previous rate increase, the bounce back in consumption, and the District's process for handling claims. Mr. Ben Parker, resident, commented on the purpose of a newly formed CAC and the provision of information to its members. Following further discussion, staff was instructed to prepare an action item for the Board's consideration to reorganize the CAC. 12. REPORTS, INFORMATION ITEMS, AND COMMENTS 12.1. Directors' Reports The Board wished everyone a Merry Christmas and Happy New Year. 12.2. General Manager's Report Mr. Marcantonio asked each of the managers (or their designee) to report on activities within their respective departments. He also wished everyone a Merry Christmas and Happy New Year. 12.3. General Counsel's Report Mr. Gagen provided instruction to the Board regarding the conduct of District business via e-mail wished everyone Happy Holidays. Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 8 12.4. Future Agenda Items and Staff Tasks None. 13. COMMITTEE REPORTS 13.1. Interagency Committee with MWDOC and OCWD ■ Next meeting is scheduled January 24, 2017 at 4:00 p.m. 13.2. Joint Agency Committee with City of Yorba Linda ■ Next meeting is yet to be scheduled. 13.3. Interagency Committee with City of Placentia and Golden State Water Company ■ Next meeting is yet to be scheduled. 13.4. Citizens Advisory Committee ■ Next meeting is scheduled January 23, 2017 at 8:30 a.m. 14. INTERGOVERNMENTAL MEETINGS Director Hawkins reported on his attendance at the following meetings. 14.1 WACO — December 9, 2016 (Hawkins) 14.2 YL Planning Commission —December 14, 2016 (Hawkins) 15. BOARD OF DIRECTORS ACTIVITY CALENDAR 15.1. Meetings from December 23, 2016 — January 31, 2017 The Board reviewed the activity calendar and made no changes. 16. CONFERENCES. SEMINARS. AND SPECIAL EVENTS 16.1 MWDOC Elected Officials' Forum —January 5, 2017 Director Hawkins made a motion, seconded by Director Hall, to approve Director attendance at this event if desired. Motion carried 4-0-0-1 with Director Nederhood being absent. 17. CLOSED SESSION The meeting was adjourned to Closed Session at 11:23 a.m. All Directors in attendance were present. Also present were Messrs. Gagen and Marcantonio. Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 9 17.1. Conference with Legal Counsel — Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: Julie Lonsdale vs. Yorba Linda Water District (OC Superior Court — Case No. 00808246) 17.2. Conference with Legal Counsel — Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: Irvine Ranch Water District vs. Orange County Water District (OC Superior Court — Case No. 00858584) The Board reconvened in Open Session at 11:40 p.m. No action was taken during Closed Session that was required to be reported under the Brown Act. 18. ADJOURNMENT 18.1. The meeting was adjourned at 11:41 p.m. A Special Board of Directors meeting has been scheduled Monday, January 9, 2017 at 4:00 p.m. The next Regular Board of Directors Meeting will be held Thursday, January 12, 2017 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held December 22, 2016 at 8:30 a.m. 10 AGENDA REPORT Meeting Date: March 28, 2017 ITEM NO. 7.2 Subject: Minutes of the Board of Directors Workshop Meeting held January 9, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name: Description: Type: 2017-01-09 - Minutes - BOD.doc Minutes Minutes 1. 2 3 2017 -XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Monday, January 9, 2017, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 CALL TO ORDER The January 9, 2017 Workshop Meeting of the Yorba Linda Water District Board of Directors was called to order by President Miller at 4:03 p.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. PLEDGE OF ALLEGIANCE President Miller led the pledge. ROLL CALL DIRECTORS PRESENT J. Wayne Miller, President Al Nederhood, Vice President Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director ALSO PRESENT STAFF PRESENT Marc Marcantonio, General Manager Steve Conklin, Engineering Manager John DeCriscio, Operations Manager Gina Knight, HR/Risk and Safety Manager Delia Lugo, Finance Manager Art Vega, Information Technology Manager Annie Alexander, Executive Secretary Kelly McCann, Senior Accountant Andrew Gagen, Partner, Kidman Law LLP Robert Porr, Senior Vice President, Fieldman Rolapp & Associates Lora Carpenter, Senior Associate, Fieldman Rollapp & Associates Kurt Yeager, Attorney, Stradling Yocca Carlson & Rauth Cyrus Torabi, Attorney, Stradling Yocca Carlson & Rauth Jonathan Nash, Citigroup 4. PUBLIC COMMENTS None. Minutes of the YLWD Board of Directors Workshop Meeting Held January 9, 2017 at 4:00 p.m. 5. DISCUSSION ITEMS 5.1. Status of Refunding Revenue Bonds, Series 2017A Mrs. Lugo introduced the visitors present and summarized the advance refunding process to date. Mr. Porr provided an overview of the credit rating process, bond insurance, levels of credit ratings and associated criteria. Mr. Porr and Mrs. Lugo then responded to questions from the Board regarding the District's ratings, the rate review currently in progress, the impact of recent litigation and the election, and interest rates. Mrs. Lugo also noted that there was an item on the next agenda for the Board to consider proceeding with the issuance of these bonds, deferring action until a later date, or cancelling them all together. Mr. Porr then reviewed the District's cash flow, the overall credit review process, and various aspects of YLWD's customer base, revenues, and expenses. He and Mrs. Lugo responded to questions related to the rating process and probability of the District maintaining its current ratings. Mr. Porr provided an overview of the District's 2008 Certificates of Participation (COP), interest rates related to the refunding opportunity, projected annual savings, and market conditions. Mr. Porr then responded to questions regarding the term of the 2008 COPs, term of the new issuance, pricing, publicizing the bond offering, and conflicts of interest. Mr. Ben Parker, resident, commented on potential benefits associated with shortening the maturity of the new bonds. Mr. Porr responded. Mrs. Lugo explained that Director Hawkins had previously participated in the municipal market disclosure training and would be excused from the remainder of the meeting. Mr. Marcantonio excused members of the management team who also previously participated in the same training. President Miller declared a recess at 5:24 p.m. and Director Hawkins left the meeting at this time. The meeting was reconvened at 5:36 p.m. 5.2. Municipal Market Disclosure Training Mr. Yeager introduced himself and Mr. Torabi and provided an overview of their firm's role and responsibilities. He briefly commented on the recent election in relation to the bond issuance process. Mr. Yeager then explained and responded to questions regarding the necessity of disclosure, the Securities Acts of 1933 and 1934, Rule 10b-5, the "materiality" standard, and levels of culpability. He also covered what should be disclosed in an Official Statement, the application of disclosure, content of annual reports, investor communications, speeches and presentations, and disclosure principles. Mr. Yeager then reviewed timing Minutes of the YLWD Board of Directors Workshop Meeting Held January 9, 2017 at 4:00 p.m. 2 considerations for bond sales and the process of preparing Official Statements. Mr. Torabi then provided an overview of disclosure considerations and prior enforcement actions for violations or improper disclosure. Messrs. Yeager and Torabi and staff then responded to questions from the Board regarding disclosure in relation to political change, staffing, standard procedures, and the conservation mandate. President Miller requested that the Board be provided with a disclosure checklist. Mrs. Cristy Parker, resident, commented on her professional background and asked for clarification regarding the Official Statement and annual disclosure. Messrs. Yeager and Torabi responded. 6. ADJOURNMENT 6.1. The meeting was adjourned at 7:04 p.m. The next Regular Board of Directors Meeting will be held Thursday, January 12, 2017 at 8:30 a.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting Held January 9, 2017 at 4:00 p.m. 3 AGENDA REPORT Meeting Date: March 28, 2017 To: Board of Directors From: Marc Marcantonio, General Manager Presented By: Delia Lugo, Finance Manager Prepared By: Richard Cabadas, Accounting Assistant I Subject: SUMMARY: Budgeted Cost Estimate: Funding Source: Dept: Reviewed by Legal: CEQA Compliance: Payments of Bills, Refunds, and Wire Transfers ITEM NO. 7.3 Yes $1,046,651.81 All Funds Finance N/A N/A 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. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $1,046,651.81. DISCUSSION: The major items on this disbursement list are as follows: A wire of $2,092.89 to So. California Edison for February 2017 electricity charges at Miraloma Ave.; a wire of $354.33 to So. California Edison for February 2017 electricity charges at multiple locations; a wire of $14,648.39 to So. California Gas Co. for February 2017 gas charges at multiple locations; a wire of $217,781.56 to MWDOC for January 2017 water purchases; a check of $104,104.54 to ACWA/JPIA for April 2017 medical & dental premium; and a check of $187,294.40 to Pacific Hydrotech Corporation for Fairmont pump station upgrade progress payment #03. The balance of $258,144.26 is routine invoices. The Accounts Payable check register total is $784,420.37; Payroll No. 05 total is $262,231.44; and the disbursements of this agenda report are $1,046,651.81. A summary of the checks is attached. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. ATTACHMENTS: Description: Type: 17 -CS 0328.pdf CAP SHEET Backup Material CkReg032817.pdf CHECK REGISTER Backup Material 17 CC 0328.pdf CREDIT CARD SUMMARY Backup Material CHECK NUMBERS & WIRES: Computer Checks 69317-69407 WIRES: W030917 W031517 W031517A W031517B March 28, 2017 So. California Edison So. California Edison So. California Gas Co MWDOC TOTAL OF CHECKS & WIRES PAYROLL NO. 05: Direct Deposits Third Party Checks 6627-6635 Payroll Taxes TOTAL OF PAYROLL $ 549,543.20 $ 549,543.20 $ 2,092.89 $ 354.33 $ 14,648.39 $ 217,781.56 $ 234,877.17 $ 167,183.92 $ 48,518.58 $ 46,528.94 $ 262,231.44 $784,420.37 $262,231.44 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $1,046,651.81 ------------------------------------------------------------------ ------------------------------------------------------------------ APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MARCH 28, 2017 ------------------------------------------------------------------ ------------------------------------------------------------------ Check No. 69332 69335 69336 69337 69338 69339 69351 69340 69341 69317 69330 69342 69343 69344 69345 69346 69328 69347 69348 69349 69350 69352 69353 69354 69355 69356 69357 69358 69359 69360 69361 69326 69362 69363 69322 69364 69365 69333 69366 69327 69367 69368 69369 69370 69329 69320 69371 69324 69372 69373 69321 69319 69375 69376 69377 69378 69379 69380 69381 W031517B 69382 69383 Yorba Linda Water District Check Register For Checks Dated: 03/15/2017 thru 03/28/2017 Date Vendor Name Amount Description 03/28/2017 ACASO & SERENO LLC 400.55 CUSTOMER REFUND 03/28/2017 ACWA/JPIA 104,104.54 MEDICAL & DENTAL PREMIUM - APRIL 17 03/28/2017 Al Nederhood 39.95 MILEAGE REIMBURSEMENT & TRAVEL EXPENSE - FEBRUARY 2017 03/28/2017 Anaheim Wheel & Tire 120.00 MOUNT & BALANCE TIRES - UNIT #200 03/28/2017 Aqua -Metric Sales Co. 10,397.56 WAREHOUSE STOCK - METERS 03/28/2017 Aramark 396.74 UNIFORM SERVICE 03/28/2017 ARC 20.00 MONTHLY PW DOC & BID MANAGEMENT 03/28/2017 AT & T - Calnet3 626.36 ATT CALNET3 - 02/01 - 02/28/17 03/28/2017 Autoscribe Corporation 738.50 PAYMENT VISION GATEWAY 03/28/2017 BETTY GREGORY 31.00 CUSTOMER REFUND 03/28/2017 BRANDEE ADAMS 225.00 CUSTOMER REFUND 03/28/2017 Brithinee Electric 619.82 MOTOR SERVICES 03/28/2017 Brooke Jones 92.02 MILEAGE REIMBURSEMENT - FEBRUARY 2017 03/28/2017 Brooke Jones 132.38 TRAVEL EXPENSE - CSDA CONFERENCE - FEBRUARY 2017 03/28/2017 CalCard US Bank 11,286.65 CREDIT CARD TRANSACTIONS - JULY 2016 - MARCH 2017 03/28/2017 California United Bank 9,857.60 J1011 B - FAIRMONT PUMP STATION UPGRADE - RETENTION 03/28/2017 CHARLES COUSAR 105.59 CUSTOMER REFUND 03/28/2017 City Of Anaheim 25,936.40 LAKEVIEW & RICHFIELD -ELECTRICITY CHARGES- 02/08/17 - 03/10/17 03/28/2017 City Of Placentia 6,564.55 SEWER FEES - JANUARY & FEBRUARY 2017 & ENCROACHMENT PERMIT #716701 03/28/2017 Clinical Lab. Of San Bern. 1,300.00 WATER QUALITY - LAB SAMPLES 03/28/2017 Cogsdale Services Corporation 2,280.00 GP & CSM - FINANCE SYSTEM UPGRADE 03/28/2017 Culligan of Santa Ana 1,970.96 EQUIPMENT PE SOFTENER 03/28/2017 Dapper Tire Co. Inc. 367.31 TIRE REPLACEMENT - UNIT 180 03/28/2017 Dell Marketing L.P. 26,597.28 SOFTWARE LICENSE RENEWAL, COMPUTERS & ELECTRICAL UPGRADES 03/28/2017 Delta Wye Electric, Inc. 3,225.35 PROFESSIONAL SERVICES - SEVERAL LOCATIONS 03/28/2017 Eisel Enterprises, Inc. 982.32 J14-25 & J15-01 - METER BOX, LIDS & COVERS 03/28/2017 Energy Environmental Soln, Inc 2,400.00 ICE TESTING - FAIRMONT ENGINE #2 03/28/2017 EyeMed 1,363.89 EYE MED PREMIUM - MARCH 2017 03/28/2017 Fieldman Rolapp & Associates 4,710.00 PROFESSIONAL SERVICES - FEBRUARY 2017 03/28/2017 Firemaster 1,894.67 FIRE EXTINGUISHER SERVICE 03/28/2017 Flex Advantage 108.00 FLEX ADVANTAGE - FEBRUARY 2017 03/28/2017 FRANKLIN MGMT 341.13 CUSTOMER REFUND 03/28/2017 Fry's Electronics 86.70 IT HARDWARE SUPPLIES 03/28/2017 Fuller Truck Accessories 737.92 VEHICLE EQUIPMENT - UNIT 213 03/28/2017 GEORGE A GRASER 8.10 CUSTOMER REFUND 03/28/2017 George Chevrolet 26,094.55 2017 CHEVROLET COLORADO 03/28/2017 Gladwell Governmental Services Inc. 250.00 RECORD RETENTION LEGAL REVIEW 03/28/2017 GUSTAVO PICHARDO 84.09 CUSTOMER REFUND 03/28/2017 Harrington Industrial 77.64 CL2 PARTS 03/28/2017 HERNANDEZJULIAN 103.33 CUSTOMER REFUND 03/28/2017 Hushmand Associates Inc 4,850.00 PROFESSIONAL SERVICES - REPAIR - LA PALMA 03/28/2017 Infosend Inc. 6,648.52 POSTAGE BILLING - FEBRUARY 2017 03/28/2017 Innovyze 4,995.00 SCADA WATCH TRAINING 03/28/2017 J & K Welding 4,187.50 STATIONARY ENGINE MAINTENANCE 03/28/2017 JOHN ERIC EIDE 11.55 CUSTOMER REFUND 03/28/2017 JON RAMSAY 584.00 CUSTOMER REFUND 03/28/2017 Jon's Flags & Poles, Inc. 1,008.54 DISTRICT GROUNDS REPLACEMENT FLAGS 03/28/2017 KATHY LAMORE 4.00 CUSTOMER REFUND 03/28/2017 Kidman Law 34,426.50 LEGAL SERVICES 03/28/2017 Kimball Midwest 241.21 MAINTENANCE - HIGHLAND #1 & #5 03/28/2017 KRISTA MURRAY 57.08 CUSTOMER REFUND 03/28/2017 LIVINGSTON RICHARDS 195.76 CUSTOMER REFUND 03/28/2017 Managed Health Network 168.75 EAP - MARCH 2017 03/28/2017 Marc Marcantonio 77.68 MILEAGE REIMBURSEMENT - FEBRUARY 2017 03/28/2017 Mc Fadden -Dale Hardware 456.07 HARDWARE SUPPLIES 03/28/2017 Mc Master -Carr Supply Co. 69.45 ENGINE MAINTENANCE PARTS - WELL #7 03/28/2017 Minuteman Press 473.56 CUSTOMER SERVICE - REPORT FORMS 03/28/2017 Mobile Industrial Supply 8.00 WELDING SUPPLIES 03/28/2017 Morton Salt, Inc. 2,791.26 COARSE SALT 03/15/2017 Municipal Water District 217,781.56 WATER DELIVERIES - JANUARY 2017 03/28/2017 NatPay Online Business Solutions 23.25 DOCULIVERY - FEBRUARY 2017 03/28/2017 Nu -Line Technologies, LLC 17,474.25 REHAB 8" SEWER LINE & 8" CIPP LINING 69384 03/28/2017 Office Solutions 69385 03/28/2017 Orange County - Tax Collector 69388 03/28/2017 P.T.I. Sand & Gravel, Inc. 69386 03/28/2017 Pacific Hydrotech Corporation 69387 03/28/2017 Phil Hawkins 69389 03/28/2017 Red Wing Shoe Store 69390 03/28/2017 RKI Engineering, LLC 69318 03/28/2017 ROB DOBSON 69323 03/28/2017 ROBERT NEAL 69391 03/28/2017 Safelite Autoglass 69392 03/28/2017 Solarwinds Inc. W030917 03/09/2017 Southern Calif Edison Co. W031517 03/15/2017 Southern Calif Edison Co. W031517A 03/15/2017 Southern Calif Gas Co. 69396 03/28/2017 St.Jude Hospital Yorba Linda 69394 03/28/2017 Stater Bros. Markets 69395 03/28/2017 Step Saver Inc 69397 03/28/2017 Sunrise Medical Group 69374 03/28/2017 The Lighthouse Inc. 69398 03/28/2017 Time Warner Cable 69399 03/28/2017 Titan Water Technology Inc 69400 03/28/2017 TMobile 69404 03/28/2017 U S Postal Service(Hasler) 69401 03/28/2017 Underground Service Alert 69402 03/28/2017 United Industries 69405 03/28/2017 United Water Works, Inc. 69403 03/28/2017 UNUM Life Insurance Co. of America 69393 03/28/2017 Veriato 69406 03/28/2017 Wayne Miller 69407 03/28/2017 West Coast Safety Supply Co 69334 03/28/2017 WILLIAM MURPHY 69331 03/28/2017 XIAOFENG MAN 69325 03/28/2017 YUNONG GAI 11.36 OFFICE SUPPLIES - TONER 357.10 ENCROACHMENT PERMIT#2016-00320/01050/00250 1,537.49 ROAD MATERIAL - +30 FILL SAND & COLD MIX ASPHALT 187,294.40 J10-11 B -PROGRESS PAYMENT #3- FAIRMONT PUMP STATION UPGRADE 26.27 MILEAGE REIMBURSEMENT - FEBRUARY 2017 198.25 BOOT ALLOWANCE - MADRID, J 2,400.00 SCADA SUPPORT 104.27 CUSTOMER REFUND 86.35 CUSTOMER REFUND 226.02 VEHICLE MAINTENACE - UNIT #166 4,071.00 SOFTWARE LICENSE RENEWAL 2,092.89 ELECTRICITY CHARGES - MIRALOMA AVE - FEBRUARY 2017 354.33 ELECTRICITY CHARGES - MULTIPLE LOCATIONS - FEBRUARY 2017 14,648.39 GAS CHARGES - MULTIPLE LOCATIONS - FEBRUARY 2017 220.00 DMV PHYSICAL EXAM 28.80 MEETING SUPPLIES 1,467.90 COARSE SALT 75.00 POST EMPLOYMENT PHYSICAL 2,174.77 VEHICLE EQUIPMENT - UNIT #213 & #214 2,027.95 DED INTERNET ACCESS & INTER STATE ACCESS 295.00 AC MAINTENANCE 0.17 T -MOBILE - FEBRUARY 2017 2,500.00 REPLENISH POSTAGE FUNDS - POSTAL METER 217.50 DIGALERT - FEBRUARY 2017 434.97 PPE EQUIPMENT & BREAKROOM SUPPLIES 12,686.53 WAREHOUSE STOCK - METERS & REPAIR PARTS 3,524.99 LIFE, AD&D, STD, LTD - APR 17 1,680.00 SOFTWARE LICENSE RENEWAL 94.16 MILEAGE REIMBURSEMENT - FEBRUARY 2017 134.07 REPAIR PARTS - SEWER MAIN 8.26 CUSTOMER REFUND 50.01 CUSTOMER REFUND 180.23 CUSTOMER REFUND / 04,4LU.3 / Payroll Checks #05 6627 3/9/2017 COLONIAL LIFE & ACCIDENT 128.30 6628 3/9/2017 FLEX ADVANTAGE 1652.41 6629 3/9/2017 LINCOLN FINANCIAL GROUP 3131.95 6630 3/9/2017 NATIONWIDE RETIREMENT SOLUTIONS 7653.22 6631 3/9/2017 GARNISHMENT 231.00 6632 3/9/2017 CALIFORNIA STATE DISBURSEMENT UNIT 366.92 6633 3/9/2017 CALIFORNIA STATE DISBURSEMENT UNIT 339.69 6634 3/9/2017 CALIFORNIA STATE DISBURSEMENT UNIT 156.46 6635 3/9/2017 CALIFORNIA PUBLIC EMPLOYEE'S RETIREMENT 34858.63 Date Vendor Name 7/27/2016 Thermal Edge 8/24/2016 Hyatt Regency Mission Bay 10/11/2016 Tony's 10/12/2016 Bay Tower Lounge - Sheraton 10/13/2016 Boathouse Restaurants 10/13/2016 Sheraton San Diego Hotel 10/13/2016 LA Times 10/27/2016 Town & Country Resort 11/10/2016 LA Times 2/22/2017 Technology Surplus Depot 3/2/2017 ARMA International 3/2/2017 Boyce Industries 3/6/2017 CSU SACRAMENTO 3/6/2017 Praxair Distribution 3/6/2017 Home Depot 3/6/2017 Dropbox Inc. 3/7/2017 Equifax Verification Services 3/8/2017 ISDOC 3/8/2017 ISDOC 3/8/2017 Verizon Wireless 3/9/2017 Home Depot 3/9/2017 Disneyland Parking 3/9/2017 GM Parts Center Cal Card Credit Card USBank 07/27/17 - 03/09/17 Amount Description 124.93 HVAC replacement fan 47.04 Travel Expense - Urban Water Institute Fall Conference 27.86 Travel Expense - CSDA Annual Conference 19.20 Travel Expense - CSDA Annual Conference 15.96 Travel Expense - CSDA Annual Conference 611.61 Travel Expense - CSDA Annual Conference 7.93 LA Times digital subscription 735.84 Travel Expense - AWWA CA/NV Conference - JD 7.69 LA Times digital subscription 2,932.03 243 MXU 520R -TC -TC meters 36.67 So. Cal Inland Empire Chapter Professional Dues - Millen 431.00 Pressure washer pump 50.00 Utility management class - Vargas, B 46.38 Welding supplies - refill oxygen bottle 15.33 Hardware supplies - concrete & landscape repairs 99.00 Online storage 29.95 Employment verification 34.00 ISDOC Quarterly luncheon - Miller and Marcantonio 17.00 ISDOC Quarterly luncheon - Nederhood 5,747.53 Verizon Wireless - January & February 2017 164.49 SOD - Landscape repair 12.00 Parking - LCW - Public Sector Employment - Marcantonio 73.21 Vehicle maintenance - Unit 214 11,286.65 ITEM NO. 7.4 AGENDA REPORT Meeting Date: March 28, 2017 Budgeted: Yes Total Budget: $60,000 To: Board of Directors Cost Estimate: $45,708 Funding Source: All Funds From: Marc Marcantonio, General Account No: 1-7020-0690-30 Manager Presented By: Gina Knight, HR/Risk and Safety Dept: Human Manager Resources/Risk Management Prepared By: Amelia Cloonan, Human Resources Analyst Subject: ACWA/JPIA Property Program Renewal Billing SUMMARY: The District has received the ACWA/JPIA Property Program Renewal Billing for the period April 1, 2017 to April 1, 2018. STAFF RECOMMENDATION: That the Board of Directors authorize payment to ACWA/JPIA in the amount of $45,708 for renewal of the District's property insurance coverage for the period April 1, 2017 to April 1, 2018. COMMITTEE RECOMMENDATION: The District obtains its property insurance through the Association of California Water Agencies/Joint Powers Insurance Authority, ACWA/JPIA. In addition, the District also receives workers compensation and general liability insurance coverage through the ACWA/JPIA and receives a multiple program discount of 5%. This year's multiple program discount for the property insurance was $2,406. The District pays its Property Program Renewal Billing annually to ACWA/JPIA. After applying the discount, the total premium for the period April 1, 2017 to April 1, 2018 is $45,708. The premium for the previous year was $44,612. An increase occurred in the premium for Basic Property in the Fixed Equipment Value category in the amount of $1124 and in the Licensed Vehicle category in the amount of $29. For this billing period, the District added to the policy four new vehicles: Two Chevy Silverado trucks, one Chevy Colorado truck and one Ford 250 truck. The District also added one diesel tank trailer. The following enhancements and other changes were reviewed and adopted by the Property Committee and the Executive Committee: Enhancements: Add coverage for underground pipelines on the premises and within 1,000 feet of business operations, and add coverage for power transmission and feeder lines on the premises and within 1,000 feet. Other Changes: Add definitions for cyber -impairment of computer services, employee personal property, and personal property. Add exclusions for: employee personal property, and contractors equipment and tools. Property claims must be reported within 30 days of discovery. This year's invoice is based on values and items listed on the property schedule from December 2016. ATTACHMENTS: Name: Description: Type: ACWA JPIA Property Program Renewal Billing ACWA JPIA Property Program Renewal Billing 2017 SScan.pdf 2017 Backup Material Member #Y002 Yorba Linda Water District P.O. Box 309 Yorba Linda, CA 92885-0309 Basic Property A. Buildings Value B. Fixed Equipment Value C. Personal Property Value Billable $13,204,578 $11,814,805 $2,545,012 Total Rate $13,204,578 0.00090 $11,814,805 0.00090 $2,545,012 0.00090 Premium $11,884 $10,633 $2,291 $27,564,395 X 0.00090 = $24,808 Credit for $1,000 Deductible Amount - $0 Mobile Equipment A. Mobile Equipment Value $195,025 X 0.00135 = $263 Credit for $1,000 Deductible Amount - $0 Licensed Vehicle A. Comprehensive and Collision Count Value Rate Premium 1. All Other 30 $2,419,598 X 0.00765 = $18,510 2. Light Truck 31 X $124 = $3,844 3. Passenger Car 0 X $106 = $0 4. SUV/Jeep 3 X $148 = $444 5. Van 2 X $122 = $244 Total Vehicle Premium = $23,042 Credit for $500 Deductible Amount - $0 B. Catastrophic Coverage Billable Total Rate Premium 1. Basic $0 $100,000 X 0.00000 = $0 2. Extra $0 $0 X 0.00130 = $0 Credit for $1,000 Deductible Amount - $0 Sub Total $48,113 JPIA Multiple Program Discount (5%) - ($2,406) Deposit Premium = $45,708 Premium Adjustment + $0 Total Amount Due = $45,708 PAYMENT DUE WITHIN 30 DAYS AGENDA REPORT Meeting Date: March 28, 2017 To: Board of Directors From: Marc Marcantonio, General Manager Presented By: Steve Conklin, Engineering Manager Prepared By: Ariel Bacani, Engineering Technician II Budgeted: Funding Source: Job No: Dept: CEQA Compliance: ITEM NO. 7.5 N/A N/A 201408 Engineering N/A Subject: Declaration of Restrictive Covenants with Toll CA III, LLC for Tract 17654 SUMMARY: Toll CA III, LLC requested District permission to construct walls and a gate along and across the District's dedicated water easement within Tract 17654. District staff reviewed the request and recommends approval subject to the execution of a Declaration of Restrictive Covenants. STAFF RECOMMENDATION: That the Board of Directors authorize the President and Secretary to execute the Declaration of Restrictive Covenants with Toll CA III, LLC for Tract 17654. DISCUSSION: Toll CA III, LLC requested District permission to construct a split face block wall and a retaining wall with wrought iron fence atop, along and within the dedicated water easement on Lot 13 of Tract No. 17654, north of Bastanchury Rd. and across the street from Yorba Linda High School, as shown on the enclosed location map and exhibit. The proposed improvements will run along the easement boundary and across the easement in a perpendicular fashion. Staff reviewed the encroachment request and has determined that the improvements will require an access gate for the maintenance of the District's facilities. To further protect the District's interests, staff recommends the execution of the attached Declaration of Restrictive Covenants, subject to approval as to form by General Counsel. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors has authorized execution of similar Declarations of Restrictive Covenants with various developers and property owners. ATTACHMENTS: Name: 201408 DoRC - Lot 13 of Tract 17654.pdf 201408 Location Map Exhibit - Lot 13 of Tract 17654.odf Description: Type: Declaration of Restrictive Covenants with Toll CA III, LLC Agreement Location Map Exhibit RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of an official service thereof. Marc Marcantonio General Manager Space Above This Line for Recorder's Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON DISTRICT EASEMENT) Job No. 201408 THIS DECLARATION OF RESTRICTIVE COVENANTS ("Declaration") is made this 28th day of March, 2017 by and between YORBA LINDA WATER DISTRICT ("YLWD"), a public agency, created and operating under the authority of Division 12 of the California Water Code, and TOLL CA III, LLC, a California Limited Liability Company ("Owner"), with reference to the following recitals of fact: RECITALS A. The Owner is the legal owner of that certain real property located at 19969 Auburn Lane, Yorba Linda, California 92886 ("Subject Property"), which is more particularly described as follows: LOT NO. 13 OF TRACT 17654, IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 952, PAGES 12 THROUGH 17 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. B. YLWD owns an Easement, as identified on Tract Map No. 17654, recorded on March 15, 2016, in Instrument No. 20160107824, Official Records of Orange County, California ("Easement'), across a portion of the Subject Property. Within the Easement, YLWD owns and maintains a water main pipeline ("District Facilities"). 1 C. The Owner desires to construct and install a wrought iron fence atop a retaining wall, a split face block wall, a ten -feet wide gate, landscaping (by successive owner), and related construction (collectively herein referred to as "Improvements") within and along the Easement area (hereinafter, "Encroachment"), as illustrated in Exhibit "A," attached hereto and incorporated by reference herewith. D. YLWD conditionally consents to Encroachment of the Improvements within and along the Easement area as stipulated in this Declaration. Owner is aware that the Improvements may lead to problems affecting and/or interfering with YLWD's use of the Easement. E. Although the construction or existence of walls, structures, and other improvements within and along the Easement area may interfere or restrict YLWD's Easement rights, the Owner wishes to construct and use the Improvement within or along the Easement area. NOW, THEREFORE, incorporating the above recitals, YLWD and Owner declare as follows: 1. Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code Section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assigns Bound. Since Owner wishes to retain the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any future adverse events and to fund any necessary maintenance costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages caused by the Encroachment. 3. Damages to District Facilities. Owner assumes full responsibility, liability and shall pay for any cost(s) or damage(s) to the District Facilities and appurtenant structures, arising from or related to the construction, existence, and/or use of the Improvements. YLWD shall not be responsible for any cost(s) or damage(s) to the District Facilities and appurtenant structures that arise from the Encroachment. 4. Damages to Third Parties. Owner, its successors or assigns, agrees to indemnify and hold YLWD, its officers, directors, employees, agents and consultants, harmless against any third 2 party claims related to or arising out of the construction, existence and/or use of the Improvements. 5. Damages to Improvements. Owner acknowledges that the Improvement may be damaged or demolished to permit reasonable access to or reasonable work within and under the Easement area. YLWD, its officers, directors, employees, agents and consultants, shall not be responsible for any damage(s) to or because of the Improvement which results from YLWD's exercise of rights under the Easement. Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys' fees) against YLWD, its officers, directors, employees, agents and consultants, for losses and damages to the Improvement and from any obligation to protect, preserve, repair, or replace the Improvement. Construction, use, protection, repair and replacement of the Improvement shall be entirely the risk and obligation of Owner, its successors or assigns, even if damage is caused by YLWD. (INTENTIONALLY BLANK) 3 Recording of Agreement. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations set forth herein. Approved as to Form: Kidman Law, LLP Arthur G. Kidman General Counsel 4 YORBA LINDA WATER DISTRICT J. Wayne Miller, PhD President Marc Marcantonio Secretary TOLL CA III, LLC, A California Limited Liability Company: Name: Title: DECLARATION OF RESTRICTIVE COVENANTS TRACT 17654 LOT 13 February 28, 2017 Dwg By: M. Jensen Ck'd By: T. Spencer W. 0. 1443-17653 Prepared For. TOLL BROTHERS INC. 725 TOWN k COUNTRY RD. SUITE 200 ORANGE, CA 92868 (714) 347.1300, FAX (714) 835 9685 I By. ©HUNSAKER & ASSOCIATES r I R V I N E I N C PLANNING ENGINEERING -SURVEYING Three Hughes • Irvine, CA 92618 • PH: (949) 583-1010 FX: (949) 583-0759 EXHIBIT "A" TRACT 17654 • LOT 13 ENCLAVE PREPARED BY: LOCATION MAP SCALE: N.T.S. YORBA LINDA WATER DISTRICT DATE: DECLARATION OF RESTRICTIVE COVENANTS 03-28-17 1717 E. MIRALOMA AVENUE FOR TRACT 17654 LOT 13 PLACENTIA, CALIFORNIA 92870 FILENAME: (714) 701-3100 J201408 19 18 17 16 15 1 14 1 13 1 12 11 10 li 9 I 8 EX 10" WA ERLINE I I 12 LOT 13 P1 20 19 18 17 16 I ---- SEE EXHIBT "A" FOR DETAIL I I 24 23 22 15 14 13 � I - - 25 i -EXISTING SEWRMA - � - EX�STIyGWE� - / 26 I 29 30 31 32 33 34 35 36 37 10 - L - I I 27 1 T T 1 654 ' 38 ' 9 - T CT \ 28 1 51 50 49 48 47 46 45 39 / 8 16 08 \ - - - ----- -�I / 7 I 40 \ I I 52 53 54 55 56 57 58 41 6 Q \ / 42 y 44 2 X11 TRACT ' h I 17653 i EXISTING _-__- - SEWER MAIN 1 - / EX. 36" ZONE WATER MAIN 4 IL BAS%ANC; a- EX. IS" ZONE 3 // URy READ l-\�`��- WATER MAIN - N PREPARED BY: LOCATION MAP SCALE: N.T.S. YORBA LINDA WATER DISTRICT DATE: DECLARATION OF RESTRICTIVE COVENANTS 03-28-17 1717 E. MIRALOMA AVENUE FOR TRACT 17654 LOT 13 PLACENTIA, CALIFORNIA 92870 FILENAME: (714) 701-3100 J201408 Meeting Date: To: From: Presented By Prepared By: Subject: SUMMARY: AGENDA REPORT March 28, 2017 Board of Directors ITEM NO. 8.1 Marc Marcantonio, General Manager Delia Lugo, Finance Manager Dept: Finance Delia Lugo, Finance Manager Establishing a Joint Powers Authority for the Purpose of Selling Revenue Bonds As authorized by the Board of Directors at the March 14, 2017 Regular Board Meeting, staff is in the process of restructuring the advance refunding opportunity by requesting additional funding to complete the construction of the Fairmont Booster Pump Station Upgrade Project. STAFF RECOMMENDATION: That the Board of Directors authorize staff to work with the Financing Team to establish a Joint Powers Authority called the "Yorba Linda District Financing Authority" in order to complete the process of issuing Revenue Bonds as part of the advance refunding opportunity. DISCUSSION: As authorized by the Board, staff is working with the Financing Team to request additional funding for the completion of the Fairmont Booster Pump Station. Traditionally, there are two options adding additional funding to an "Advanced Refunding Opportunity" — the issuance of Certificates of Participation or the issuance of Revenue Bonds. After much consideration the Refinancing Team is recommending the issuance of Revenue Bonds on the basis that this option is more appealing to potential investors and will produce a lower yield as compared to Certificates of Participation. Though the District currently has an active Public Financing Corporation, this option can only be used for the issuance of Certificates of Participation. The process by which Revenue Bonds can be sold will require the establishment of a Joint Powers Authority ("JPA") with the California Municipal Financing Authority ("CMFA") under Section 6500 et seq. of the California Government Code. To establish a JPA, staff, on behalf of the District, will need to submit an application to join the CMFA, and then establish the JPA, via resolution that will approve a joint exercise of powers agreement to be drafted by bond counsel. To issue Revenue Bonds of the JPA, a new legal structure will be used. Under this structure, the JPA will issue Revenue Bonds under a bond indenture to be drafted by bond counsel, and the District will make payments securing the Revenue Bonds under an installment purchase agreement between the District and the JPA to be drafted by bond counsel. In addition, slight modifications to the Preliminary Official Statement will be made to reflect the new legal structure. The expected date for the bonds to go to market is still anticipated to occur in May. Robert Porr, of Fieldman Rolapp, and Cyrus Torabi, of Stradling Yocca Carlson & Rauth, are both present to offer additional information pertaining to this process. ATTACHMENTS: Name: Description: Type: Revenue Bond and COP Presentation.odf Backup Material Distributed Less Than 72 Hours Prior to Backup Material the Meeting W Yorba Linda Water District Update on 2017 Refunding/New Money Structuring Options Backup Material Distributed Less Than 72 Hours Prior to the Meeting Tuesday, March 28, 2017 FYELDMAN I ROLAPP ITEM NO. ISAVGATES As of March 22, 2017 REFUNDING / NEW MONEY STRUCTURE OVERVIEW s FIELDMAN I ROLAPP & ASSOCIATES Yorba Linda Water District ■ Revenues Bonds used debt vehicle Structure: Revenue Bonds vs. COPs are widely for water agency borrowings; the basis and strength of the credit is primarily the pledge of net operating revenues; issuer pledges to maintain rates and charges to maintain certain debt service coverage levels. Essential utility credits are well- received by investors and pricing is attractive in current market. Security is the pledge and the ability to increase rates and charges to meet financial covenants. • Certificates of Participation "COP" are commonly used borrowing instruments secured with a pledge, located in the Installment Purchase Agreement with the Issuer's Financing Corporation, of net operating revenues; the Issuer covenants to maintain rates and charges to maintain certain levels of installment payments. The structure of COPs are a less favored security by investors than typical revenue bonds, resulting in higher interest rates/yields. HELDMAN I ROLAPP & ASSOCIATES Yorba Linda Mater District w $50 c 0 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Summary Chart* Total Debt Service Comparison Refunding Total DS � New Money Total DS -Total COI Revenue Bonds COP (+10 bp) 3 *Based on market conditions as of March 22, 2017 COP (+20 bp) $350,000 $345,000 $340,000 $335,000 $330,000 $325,000 $320,000 $315,000 $310,000 $305,000 - a FIELDMAN I ROLAPP & ASSOCIATES Yorba Linda Mater District 4 JPA Structure Member of JPA joint Powers Member of JPA Authority Debt Service Payments made by the qistrict to JPA JPA ma es debt Yorba Linda CMFA service p ments to Water District bondh Iders Bondholders FIELDMAN I ROLAPP & ASSOCIATES Yorba Linda Mater District March 28, 2017 Board Decision on Financing Structure March 2017 — Board Meeting Financing Timing Options April 7, 2017 CMFA Board Meeting April 11, 2017 Approve Legal Documents and creation of JPA 7April017 April, 2017 Receive credit Ratings ■ Waiting has two other benefits: Late April / Early May, 2017 Price May 2017 June 2017 Late May/ Early June, 2017 Close Executing the refunding within 90 days of the 2008 COP optional call date (October 1, 2017) in July would preserve the District's "advance refunding" option for the future under IRS rules Allows for a shorter period refunding bond proceeds are held in escrow (refunding execution date to the COP call date) • Based on current market conditions, a potential current refunding results in $114,000* additional net present value savings when compared to the advance refunding scenario — *Based on market conditions as of March 22, 2017 - — FIELDMAN I ROLAPP & ASSOCIATES Yorba Linda Water District OVERVIEW OF LEGAL DOCUMENTS/ SCHEDULE FIELDMAN I ROLAPP & ASSOC] AfES Yorba Linda Water District ■ Joint Powers Authority Agreement ■ Resolution with Yorba Linda Water District Legal Documents ■ Resolution with newly formed Joint Powers Authority ■ Preliminary Official Statement ■ Indenture of Trust ■ Installment Purchase Agreement ■ Escrow Agreement ■ Continuing Disclosure Agreement HELDMAN I ROLAPP & ASSOCIATES Yorba Linda Mater District g Recommendation ■ Become a member of California Municipal Finance Authority and pursue creation of Joint Powers Authority with CMFA ■ Pursue the 2017 Refunding Revenue Bonds with CMFA ■ Authorize staff to work with Finance team to have the appropriate legal documents prepared for approval FIELDMAN I ROLAPP & ASSOCIATES As of March 24, 2017 MARKET UPDATES s FIELDMAN I ROLAPP & ASSOCIATES Yorba Linda Mater District 3.5 3.0 2.5 2.0 1.5 1.0 151X131512°��51512�� 1`� 1 VX50 I51 a°,1,I512°1519, ,151 �,6� I5 �,� 151 �,6� 1512��1� 1512°t6� I,� P_13 11315 r1ol Change in 'AAA' MMD Yields 0'anuaiy 5, 2015 through March 24, 2017) —'AAA' MMD 10 -Year Yields —'AAA' MMD 30 -Year Yields Source: Thomson Municipal Market Monitor. 2.75 2.50 2.25 2.00 1.75 1.50 1.25 >>1i12°l6>>I,51o"12,I?o6�21^512p,6121z, 2p1� IW°P-1111, tlZal2°11, 21, 1, 21ti�12°l� 31,12°x, Municipal Market Update Tax -Exempt Interest Overview Change in 'AAA' MMD Yields (November 1, 2016 through Mtarcb 24, 2017) —'AAA' MMD 10 -Year Yields 3.50 325 3.00 2.75 2.50 2.25 111 i 12p16111151 Op N 17-91 0%61211'S 12p161jJ V I2p16 111° 12p11 117.41 ""' 211 12p11 212112p'1 51112°11 ,)12112p11 Change in'AAA' MMD Yields (November 1, 2016 through March 24, 2017) —'AAA' MMD 30 -Year Yields FiELDMAN I ROLAPP & ASSOCIATES Yorba Linda Mater District Municipal Market Update Market Movements Current "AAA" MMD and Percentage of Time Historical "AAA" MMD has been Lower than Current "AAA" MMD from fanuag 2, 1998 through March 24, 2017 100% -1 r 3.50 90% 3.00 80% --------------------------- ' 3/24/17 MMD (Right Axis) ' 70% '--------------------------- 2.50 GO% 2.00 N4- 50% 50% o c : 'a W lJ 1.50 40% 4P-pNo 300/° a tiN, ' .� �o o .� .� o0 00 1.00 \ a O � 00 cn W N N N O 'V W � r1 cJ ~' 0 c o 0 0 0 0 0 0 0 ` o c O N O 20% Co 10% I I I I I I I I 1 1 1 1 1 1 1 1 0.50 0%i = = � � � � � � � � � = - � = � � � � � � � 09 i 0.00 1 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Maturity FIELDMAN I ROLAPP & ASSOCIATES Source: Thomson Municipal Market Monitor. Yorba Linda Mater District 12 Disclaimer The scenarios are being provided for informational purposes only, and do not reflect any specific recommendation regarding a financial transaction. These materials include an assessment of current market conditions, and include Fieldman, Rolapp & Associates, Inc. assumptions about interest rates, execution costs, and other matters related to municipal securities issuance or municipal financial products. These assumptions may change at any time subsequent to the date these materials were provided. The refinancing and refunding scenarios presented herein are not intended to be inclusive of every feasible or suitable refinancing alternative. Fieldman, Rolapp & Associates, Inc. is an SEC -registered Municipal Advisor, undertaking a fiduciary duty in providing financial advice to public agencies. Compensation contingent on the completion of a financing or project is customary for municipal financial advisors. To the extent that our compensation for a transaction is contingent on successful completion of the transaction, a potential conflict of interest exists as we would have a potential incentive to recommend the completion of a transaction that might not be optimal for the public agency. However, Fieldman, Rolapp & Associates, Inc. undertakes a fiduciary duty in advising public agencies regardless of compensation structure. FIELDMAN I ROLAPP & ASSOCIATES AGENDA REPORT Meeting Date: March 28, 2017 To: Board of Directors ITEM NO. 8.2 From: Marc Marcantonio, General Manager Subject: Supporting Association of California Water Agencies Policy Statement on Bay - Delta Flow Requirements STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 17-09 in support of the Association of California Water Agencies policy statement on the Bay -Delta flow requirements. DISCUSSION: The Association of California Water Agencies (ACWA) Board of Directors has adopted a strong policy statement urging the State Water Resources Control Board (SWRCB) to set aside its problematic "unimpaired flow" approach to setting new water quality objectives in the Bay -Delta watershed. The statement calls on SWRCB to heed Governor Brown's call for negotiated agreements, which have been successful in achieving positive ecological outcomes while maintaining water supply reliability. ACWA believes the state's policy on flows should embrace a collaborative, comprehensive approach that protects and promotes both water supply reliability and ecosystem health. SWRCB staff's proposal to base new water quality objectives on a "percentage of unimpaired flow" could lead to widespread fallowing of agricultural land and negatively affect water reliability for much of the state's population. The singular focus on unimpaired flow is incompatible with the state's policy of coequal goals and other broader policy commitments in the Brown Administration's California Water Action Plan. ACWA submitted the policy statement to SWRCB along with its formal comment letter on the Phase 1 updated to the Bay -Delta Water Quality Control Plan. ACWA has also requested its members agencies to adopt a resolution in support of its policy statement on Bay -Delta flow requirements. As such, the attached resolution has been prepared for the Board's consideration. ATTACHMENTS: Resolution No. 17-09.0 Description: Resolution Type: Resolution RESOLUTION NO. 17-09 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT IN SUPPORT OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES POLICY STATEMENT ON BAY -DELTA FLOW REQUIREMENTS WHEREAS, the Yorba Linda Water District (the "District") is a member agency of the Association of California Water Agencies (ACWA); and WHEREAS, ACWA's Board of Directors adopted a strong policy statement urging the State Water Resources Control Board to set aside its approach to setting new water quality objectives in the Bay -Delta watershed; and WHEREAS, ACWA has requested its member agencies to adopt a resolution in support of its policy statement on Bay -Delta flow requirements. NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Yorba Linda Water District does hereby formally support ACWA's policy statement on Bay -Delta flow requirements as set forth in Exhibit A. PASSED AND ADOPTED this 28t" day of March, 2017 by the following called vote: AYES: NOES: ABSENT: ABSTAIN: J. Wayne Miller, Ph.D., President Yorba Linda Water District ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law, LLP In Support of AMA's Policy Statement on Bay -Delta Flow Requirements EXHIBIT A In Support of ACWA's Policy Statement on Bay -Delta Flow Requirements \- 4. gAY-DELTA F LC RF0111RFMFN1 COLLABORATIVE APPROACH IS KEYTO CALIFORNIA'S FUTURE California is facing a defining moment in water policy. A staff proposal under consideration by the State Water Resources Control Board presents a decision point about the future we want for California and its communities, farms, businesses and ecosystems. The State Water Board's staff proposal to base new water quality objectives on a "percentage of unimpaired flow" would have impacts that ripple far beyond water for fish. The proposal could lead to widespread fallowing of agricultural land, undercut the state's groundwater sustainability goals, cripple implementation of the Brown Administration's California Water Action Plan, negatively affect water reliability for much of the state's population and impact access to surface water for some disadvantaged communities that do not have safe drinking water. These effects are not in the public's interest. Local water managers overwhelmingly believe the proposal's singular focus on "unimpaired flow" is the wrong choice for the state's future. California's urban and agricultural water managers are united in their vision for a future that includes a healthy economy as well as healthy ecosystems and fish populations. That vision is best achieved through comprehensive, collaborative approaches that include "functional" flows as well as non - flow solutions that contribute real benefits to ecosystem recovery. On behalf of its more than 430 member public agencies serving urban and agricultural customers throughout the state, the Association of California Water Agencies (ACWA) adopts the following policy statement regarding the State Water Board's proposed approach to updating the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta. CHOOSING OUR VISION FOR CALIFORNIA'S WATER FUTURE Since 2009, state law has required water resources to be managed in a way that achieves the coequal goals of improving water supply reliability for California and protecting, restoring and enhancing the Delta ecosystem. ACWA and its public water agency members believe that policy requires a commitment from state agencies and stakeholders to advance both water supply and environmental goals together. ACWA and its members further believe that effective implementation of the coequal goals requires transparent, collaborative processes and comprehensive solutions. In 2014, the Brown Administration released its California Water Action Plan outlining priority actions addressing water -use efficiency, groundwater sustainability, ecological restoration, Delta conveyance solutions, water storage, safe drinking water and more. Embedded in the plan is the Brown Administration's commitment that planned actions "will move California toward more sustainable water management by providing a more reliable water supply for our farms and communities, restoring important wildlife habitat and species, and helping the state's water systems and environment become more resilient." ACWA believes the policy of coequal goals and the commitment embedded in the California Water Action Plan have the potential to put California on a path that includes a vibrant agricultural and urban economy and a healthy ecosystem. ACWA and its members believe the unimpaired flow approach proposed by State Water Board staff undercuts and threatens that potential and cannot lead us to the future we want for California. Simply put, any strategy that would result in vast amounts of agricultural land going out of production and ultimately reduce water supply reliability for the majority of Californians is irreconcilable with a policy of coequal goals and blatantly inconsistent with the water policy objectives of the Brown Administration. ACWA strongly supports the collaborative approach called for by Governor Jerry Brown to move these important decisions out of adversarial processes and into negotiated, comprehensive agreements. The following principles can assure success in that endeavor. A BETTER PATH TO THE FUTURE The State Water Board is responsible for updating the Bay -Delta Plan in a manner that establishes water quality objectives that ensure the reasonable protection of all beneficial uses of water (including domestic, municipal, agricultural and industrial supply; power generation; recreation; aesthetic enjoyment; navigation; and preservation and enhancement of fish, wildlife, and other aquatic resources) while considering past, present and probable future beneficial uses, environmental characteristics, water quality conditions and economic considerations, among other things. (See California Water Code Section 13241.) It also has a responsibility to update the plan in a way that is consistent with the coequal goals and respects and implements the commitments made in the California Water Action Plan. ACWA and its members urge the State Water Board to set aside the unimpaired flow approach and heed Governor Brown's call for negotiated agreements. ACWA believes that a successful flows policy must be consistent with the following principles: Collaboration: The governor has called for work on a comprehensive agreement on environmental flows in both the San Joaquin and Sacramento River basins. He has asked that State Water Board members and staff prioritize analysis and implementation of voluntary agreements. Further, the Brown Administration committed in the California Water Action Plan that the State Water Board and the California Natural Resources Agency will work with stakeholders to encourage negotiated implementation of protective Delta standards. ACWA strongly supports the collaborative approach called for by the governor because it is the least contentious, most effective way to achieve the coequal goals. Negotiated agreements have been demonstrably successful at achieving outcomes and widespread support for appropriate environmental flows; forced regulations have not yielded the same track record. The State Water Board should wholly embrace this approach and allow enough time for it to work. Comprehensive Solutions: A successful collaborative approach will require comprehensive solutions for both water supply and ecosystem management. Water users will need to continue and build on their commitment to integrated resources management in order to maintain reliability without undue impacts on the ecosystem. Similarly, ecosystem managers will need to focus on the entire life cycle of affected species and multiple variables, such as predation, food, and habitat availability to develop integrated management portfolios that accomplish ecosystem goals without undue impacts on water supply. Utilizing the single variable proposed in the "percentage of unimpaired flow" approach will not achieve the desired ecological outcomes and is, by far, the most destructive policy approach from the perspective of protecting and improving water supply. ACWA firmly believes the ecological outcomes can be achieved with even better results through a comprehensive approach that considers multiple solutions and benefits. Science: The State Water Board needs to incorporate the best available science to inform its work and assist with the development of voluntary settlement agreements. The unimpaired flow approach, in which flow objectives are not tied to any specific ecological outcome, fails to incorporate the best available science. As noted above, the updated plan needs to focus on the entire life cycle of affected species and multiple variables, such as predation, food, and habitat availability, and incorporate relevant current scientific information. Science alone cannot identify the best policy choice, but it can inform us about the policy tradeoffs we confront and help structure integrated solutions that provide ecosystem benefits with far less impact on water supply, the California economy and the public interest. Functional Flows: Science shows that functional flows have very promising benefits for fish as well agricultural and urban water users. Timed and tailored for specific purposes, functional flows can benefit species in ways that unimpaired flow requirements cannot. Examples abound of collaborative, innovative projects currently underway by local water agencies and stakeholders that include functional flows and non -flow solutions that reconnect land and water to restore habitat and address the full life cycle of species needs. These efforts contribute real benefits to ecosystem recovery while maintaining water supply reliability. Economic Considerations: The State Water Board has a statutory obligation to consider economic impacts when establishing water quality objectives that reasonably protect all beneficial uses of water. Having a robust economic analysis is critical. The board also has a policy obligation under the coequal goals to ensure its actions related to a revised Bay - Delta Plan increase water supply reliability and thereby allow for a healthy, growing agricultural and urban economy in California. Consistency with State Policy: ACWA urges the State Water Board to heed the governor's direction and recognize that achieving the coequal goals will lead to a more reliable water supply and healthy ecosystem. Pursuing the coequal goals should be a guiding principle for the board's decisions related to adopting a revised Bay -Delta Plan. The State Water Board also should ensure that its decisions on the Bay -Delta Plan enable, rather than obstruct, the implementation of the California Water Action Plan. Leadership: The best policy choice will come through the give and take of the negotiating process and the enlightened leadership of the State Water Board members. Ultimately, the board must establish water quality objectives that ensure the reasonable protection of all beneficial uses of water as it implements negotiated solutions. The State Water Board should actively engage in this work and lead in a manner that is grounded in an awareness of how its actions can affect the implementation of the California Water Action Plan and the achievement of the coequal goals. ACWA and its members have taken a strong policy position in support of comprehensive solutions such as those outlined in the California Water Action Plan. We stand ready to work with the Brown Administration to pursue the collaborative and comprehensive approaches needed to ensure a future for California that includes a vibrant agricultural and urban economy and a healthy ecosystem. Meeting Date To: From: Presented By Prepared By: Subject: DISCUSSION: AGENDA REPORT March 28, 2017 Board of Directors ITEM NO. 9.1 Marc Marcantonio, General Manager Delia Lugo, Finance Manager Dept: Finance Delia Lugo, Finance Manager Budget to Actual Statements for the Month Ending February 28, 2017 Cumulative Volumetric Water Revenue, as reported through the month ending February 28, 2017, reflects an average rebound of 10% as compared to prior year for the same reporting period. Landscape/Irrigation classified customer connections have experienced the largest rebound in monthly consumption for this reporting period (See included Average Consumption by Month by Customer Class graph). As expected, when the weather cools and the rainy season is upon us customer consumption decreases. This is very evident for the past two reporting months. Total Variable Costs results reflect at 14% increase when compared to prior year for the same reporting period. The increase in costs is reflective of an increase in demand as well as a higher cost per acre foot. As reflected in the charts, the average monthly recovery percentage has decreased dramatically since a high of 30% above prior year demand in the summer. This is due to cooling weather and increased rain. The cumulative demand recovery from July through February is approximately 10%. ATTACHMENTS: Name: Description: Type: Consolidated Budget to Actual Statement February 2017.xlsx Consolidated Budget to Actual Stmt February 2017 Backup Material Water Budget to Actual Statement February 2017.pdf Water Budget to Actual Stmt February 2017 Backup Material Sewer Budget to Actual Statement February 2017.0f July 2016 - Feb 2017 Average Consumption by Month Chart.xlsx Jul 2016- Feb 2017 Bounce Back by Month Chart.xlsx Jul 2016- Feb 2017 Demand Recovery Chart.xlsx Sewer Budget to Actual Stmt February 2017 Backup Material Graph on Customer Consumption by Class Backup Material Graph Demand Monthly Recovery Thru February Backup Material 2017 Graph on Monthly Demand Recovery with Bouce Backup Material Back Target Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Period Ending February 28, 2017 (With February 28, 2016 for comparison purposes) Revenue (Operating): Water Revenue (Residential) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape/Irrigation) Water Revenue (Service Charge) Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non -Operating): Interest Property Tax Other Non -Operating Revenue Total Non -Operating Revenue: Total Revenue Expenses (Operating) YTD YTD YTD Actual Prior Year YTD Actual YTD Actual Budget Actual (Under) Over Actual (thru vs vs FY 2017 FY 2017 YTD Budqet Feb. 2016) PY Actual $ PY Actual % $9,230,345 $8,786,233 (444,112) $8,257,388 $528,845 6.40% 1,244,317 1,226,845 (17,472) 1,143,510 $83,334 7.29% 1,990,288 2,299,123 308,834 1,796,712 $502,411 27.96% 6,691,282 6,796,620 105,338 6,342,941 $453,679 7.15% 1,235,225 1,249,030 13,806 1,096,589 $152,442 13.90% 113,624 123,421 9,797 96,099 $27,322 28.43% 436,550 587,508 150,958 1,978,258 (1,390,749) -70.30% 20,941,631 21,068,780 127,149 20,711,497 357,283 1.73% 76,667 211,081 134,414 153,863 $57,218 37.19% 830,415 961,741 131,326 921,367 $40,374 4.38% 411,017 311,322 (99,695) 457,414 (146,092) -31.94% 1,318,098 1,484,144 166,045 1,532,644 (48,500) -3.16% 22,259,729 22,552,924 293,195 22,244,141 308,783 1.39% Variable Water Costs (G.W., Import & Power) 8,945,825 8,248,872 (696,953) 7,235,330 1,013,542 14.01% Salary Related Expenses 6,213,014 5,945,253 (267,761) 5,715,226 230,027 4.02% Supplies & Services 3,313,547 2,873,761 (439,786) 2,762,566 111,196 4.03% Total Operating Expenses 18,472,386 17,067,886 (1,404,500) 15,713,122 1,354,764 8.62% Expenses (Non -Operating): Interest on Long Term Debt Other Expense Total Non -Operating Expenses: Total Expenses Net Position Before Capital Contributions Capital Contributions (Non -Cash Transaction - GASB 34 Compliant) Net Position Before Depreciation Depreciation & Amortization Total Net Position 1,147,923 1,076,970 (70,952.47) 1,117,454 (40,484) -3.62% 15,333 21,002 5,669 24,395 (3,393) -13.91% 1,163,256 1,097,972 (65,284) 1,141,849 (43,877) -3.84% 19,635,642 18,165,858 (1,469,784) 16,854,971 1,310,888 7.78% 2,624,087 4,387,065 1,762,979 5,389,170 (1,002,105) -18.59% 997,970 997,970 179,109 818,861 457.19% 2,624,087 5,385,036 2,760,949 5,568,279 (183,243) -3.29% 5,040,848 4,752,934 (287,914) 5,053,667 (300,733) -5.95% ($2,416,761) $632,102 $3,048,863 $514,613 $117,489 22.83% (154,432) (136,921) (17,511) 12.79% Yorba Linda Water District Water Fund For Period Ending February 28, 2017 (With February 28, 2016 for comparison purposes) YTD Feb YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Actual Actual (Under)Over Feb Actual Actual (thru vs vs FY 2017 FY 2017 FY 2017 YTD Budget FY 2016 Feb 2016) PY Actual $ PY Actual °G Revenue (Operating) Water Revenue (Residential) $9,230,345 $683,716 $8,786,233 (444,113) $693,917 $8,257,388 $528,845 6.40% Water Revenue (Commercial & Fire Det.) 1,244,317 124,585 1,226,845 (17,472) 105,714 1,143,511 83,334 7.29% Water Revenue (Landscape/Irrigation) 1,990,288 40,470 2,299,123 308,835 101,264 1,796,713 502,410 27.96% Water Revenue (Service Charge) 6,691,282 829,451 6,796,620 105,338 1,050,910 6,342,941 453,679 7.15% Other Operating Revenue 411,769 37,604 519,308 107,538 129,522 1,917,073 1,397,765 -72.91% Total Operating Revenue: 19,568,002 1,715,826 19,628,129 60,127 2,081,327 19,457,626 170,503 0.88% Revenue (Non -Operating): 163,567 38,541 159,092 (4,475) 9,623 149,674 9,418 6.29% Interest 66,667 21,207 190,094 123,427 18,512 142,413 $47,681 33.48% Property Tax 830,415 8,401 961,741 131,326 1,367 921,367 $40,374 4.38% Other Non -Operating Revenue 403,067 67,896 256,932 (146,134) 58,809 428,202 (171,270) -40.00% Total Non -Operating Revenue: 1,300,148 97,504 1,408,767 108,619 78,688 1,491,982 (83,215) -5.58% Total Revenue 20,868,150 1,813,330 21,036,896 168,746 2,160,015 20,949,608 87,288 0.42% Expenses (Operating): - 94,990 562,700 562,700 71,962 104,605 458,096 437.93% GASB 34 Compliant) Variable Water Costs (G.W., Import & Power) 8,945,825 471,648 8,248,872 (696,953) 630,172 7,235,330 1,013,542 14.01% Salary Related Expenses 5,564,404 552,036 5,303,517 (260,887) 546,092 5,133,383 170,134 3.31% Supplies & Services: Depreciation & Amortization 4,132,288 484,212 3,863,742 (268,546) 514,799 Communications 142,560 6,952 113,719 (28,841) 9,416 148,075 (34,356) -23.20% Contractual Services 319,707 35,319 282,560 (37,147) 42,113 323,699 (41,139) -12.71% Data Processing 163,567 38,541 159,092 (4,475) 9,623 149,674 9,418 6.29% Dues & Memberships 78,004 1,251 74,620 (3,383) 437 70,740 3,880 5.49% Fees & Permits 156,420 9,680 119,240 (37,180) 21,397 119,181 59 0.05% Board Election 152,520 - 120,873 (31,647) - - 120,873 Insurance 177,531 19,831 159,845 (17,685) 19,912 158,194 1,651 1.04% Materials 483,208 70,539 583,897 100,689 58,559 520,118 63,779 12.26% District Activities, Emp Recognition 18,011 646 5,852 (12,160) 498 6,687 (836) -12.50% Maintenance 262,163 38,443 225,689 (36,474) 30,108 192,770 32,919 17.08% Non -Capital Equipment 105,576 8,659 83,088 (22,488) 16,660 63,125 19,963 31.63% Office Expense 26,811 4,052 22,130 (4,681) 3,305 25,891 (3,761) -14.53% Professional Services 375,147 62,492 305,683 (69,464) 71,647 390,403 (84,720) -21.70% Training 46,200 7,872 31,418 (14,782) 1,609 14,937 16,481 110.34% Travel & Conferences 74,175 551 23,693 (50,482) 5,551 31,146 (7,453) -23.93% Uncollectible Accounts 21,700 (130) 7,194 (14,506) 17,774 33,996 (26,802) -78.84% Utilities 77,500 11,369 86,592 9,093 7,756 76,481 10,111 13.22% Vehicle Equipment 215,277 12,696 179,085 36,192 26,971 193,559 14,474 -7.48% Supplies & Services Sub -Total 2,896,075 328,763 2,584,270 (311,805) 343,336 2,518,676 65,595 2.60% Total Operating Expenses 17,406,305 1,352,447 16,136,659 (1,269,646) 1,519,600 14,887,389 1,249,271 8.39% Expenses (Non -Operating): Interest on Long Term Debt 1,147,923 130,618 1,076,970 (70,953) 133,980 1,117,454 (40,484) -3.62% Other Expense 15,333 9,041 23,744 8,410 785 39,708 (15,964) -40.20% Total Non -Operating Expenses: 1,163,256 139,659 1,100,714 (62,542) 134,765 1,157,162 (56,448) -4.88% Total Expenses 18,569,561 1,492,106 17,237,373 (1,332,188) 1,654,365 16,044,550 1,192,823 7.43% Net Position Before Capital Contributions 2,298,589 321,224 3,799,523 1,500,934 505,649 4,905,057 (1,105,535) -22.54% Capital Contributions (Non -Cash Transaction - - 94,990 562,700 562,700 71,962 104,605 458,096 437.93% GASB 34 Compliant) Net Position Before Depreciation 2,298,589 416,214 4,362,223 2,063,634 577,611 5,009,662 (647,439) -12.92% Depreciation & Amortization 4,132,288 484,212 3,863,742 (268,546) 514,799 4,141,428 (277,686) -6.71% Total Net Position (1,833,699) (67,998) 498,481 2,332,180 62,813 868,234 (369,754) -42.59% Capital - Direct Labor (16,690) (142,988) (12,870) (122,127) (20,861) 17.08% Revenue (Operating): Sewer Charge Revenue Locke Ranch Assessments Other Operating Revenue Total Operating Revenue: Revenue (Non -Operating): Interest Other Non -Operating Revenue Total Non -Operating Revenue: Total Revenue Expenses (Operating): Salary Related Expenses Supplies & Services: Communications Contractual Services Data Processing Dues & Memberships Fees & Permits Board Election Insurance Materials District Activities, Emp Recognition Maintenance Non -Capital Equipment Office Expense Professional Services Training Travel & Conferences Uncollectible Accounts Utilities Vehicle Equipment Supplies & Services Sub -Total Total Operating Expenses Expenses (Non -Operating): Interest Expense Other Expense Total Non -Operating Expenses: Yorba Linda Water District Sewer Fund For Period Ending February 28, 2017 (With February 28, 2016 for comparison purposes) YTD Feb YTD YTD Actual Prior Year Prior Year YTD Actual YTD -CUR Budget Actual Actual (Under)Over Feb Actual Actual (thru vs vs FY 2017 FY 2017 FY 2017 YTD Budget FY 2016 Feb 2016) PY Actual $ PY Actual $1,235,225 $154,388 $1,249,030 $13,805 $140,033 $1,096,588 $152,442 13.90% 113,624 - 123,421 9,797 - 96,099 27,322 28.43% 24,781 5,379 68,200 43,420 3,287 61,185 7,016 11.47% 1,373,629 159,767 1,440,651 67,022 143,320 1,253,872 186,780 14.90% 10,000 2,087 20,987 10,987 1,618 11,450 9,537 83.29% 7,950 2,143 54,390 46,440 5,300 29,212 25,178 86.19% 17,950 4,230 75,377 57,427 6,918 40,662 34,715 85.37% 1,391,579 163,997 1,516,028 124,449 150,238 1,294,534 221,494 17.11% 648,610 67,059 641,736 (6,873) 67,111 581,843 59,893 10.29% 10,723 523 6,095 (4,629) 709 9,042 (2,948) -32.60% 52,470 2,671 20,505 (31,965) 3,053 23,928 (3,423) -14.31% 12,239 2,901 12,102 (137) 724 11,164 938 8.40% 5,914 94 5,617 (297) 33 5,502 115 2.09% 11,197 610 8,584 (2,613) 1,531 7,176 1,408 19.62% 11,480 - 9,098 (2,382) - - 9,098 - 13,363 1,493 12,031 (1,331) 1,499 11,907 124 1.04% 69,792 791 21,072 (48,720) 1,165 21,458 (386) -1.80% 1,356 49 441 (916) 37 501 (61) -12.08% 114,390 10,860 107,436 (6,954) 29,947 64,659 42,777 66.16% 24,458 1,384 10,740 (13,718) 2,898 19,575 (8,834) -45.13% 1,923 311 1,666 (257) 249 1,521 145 9.51% 23,520 3,261 13,866 (9,654) 2,547 15,801 (1,935) -12.24% 5,191 586 3,183 (2,007) 121 1,975 1,208 61.18% 9,135 43 1,649 (7,486) 278 2,281 (633) -27.73% 1,633 (28) 1,248 (385) 2,793 5,599 (4,351) -77.71% 6,366 914 6,840 473 644 5,457 1,383 25.34% 42,322 6,549 47,319 4,997 3,082 36,342 10,978 30.21% 417,472 33,013 289,491 (127,980) 51,310 243,888 45,604 18.70% 1,066,081 100,072 931,228 (134,854) 118,421 825,731 105,497 12.78% (2,742) (2,742) (15,313) 12,571 -82.09% (2,742) (2,742) (15,313) 12,571 -82.09% Total Expenses 1,066,081 100,072 928,486 (137,595) 118,421 810,418 118,068 14.57% Net Position Before Capital Contributions 325,498 63,925 587,542 262,044 31,817 484,116 103,426 21.36% Capital Contributions (Non -Cash Transaction - - 94,706 435,270 435,270 - 74,504 360,766 484.22% GASB 34 Compliant) Net Position Before Depreciation 325,498 158,631 1,022,812 697,314 31,817 558,620 464,192 83.10% Depreciation & Amortization 908,560 111,407 889,191 (19,369) 113,570 912,240 (23,049) -2.53% Total Net Position (583,062) 47,224 133,621 716,683 (81,753) (353,620) 487,241 -137.79% Capital - Direct Labor (703) (11,444) (968) (14,794) 3,350 -22.65% 215 16b 115 154.73 131.88 70 65 67.59:9 15 -35 Average Consumption by Month - All Customers by Class (Prior Yea r-FY16 vs. Current Yea r-FY17), i n Bi II ing Units 199.13 21.27 18.21 21.58 16.18 ■ 21.42 23.76 25.6 21.53 July August September October 64.21 16.38 20.3 November 49.63 17.24 14.32 December i 41.34 10.88 10.58 January 50.36 50.35 45.84 17.64 � 12.13 10.41 February --*---Res Prior Year --e— Res Current Year Com Prior Year Com Current Year tlrr Prior Year tIrr Current Year 25 - 20 18.0 18. i_ 15 16.44 Monthly Recovery (MG) (based on average daily demand) "Bounce Back" from July 1, 2016- FebrL 10% 19.63 16.96 16.14 16.93 15.21 15.14 78. 14 14.41 12.65 13.58 11.2 9.77 10.53 13.01 11.65 8. 6.9 111 -F 5 [I lwlm..�dllmm July August September October November December January February March � Prior Year � Current Year 12% Bounce Back Target AGENDA REPORT Meeting Date: March 28, 2017 To: Board of Directors From: Marc Marcantonio, General Manager Presented By: Delia Lugo, Finance Manager Dept: Prepared By: Kelly McCann, Senior Accountant ITEM NO. 9.2 Finance Subject: Cash and Investments Report for Period Ending February 28, 2017 SUMMARY: Government Code Section 530607, et. seq., requires the person delegated to invest funds to make monthly report of investments to the legislative body. DISCUSSION: The Cash & Investment Portfolio Report presents the market value and percent yield for all District investments by institution. The Cash & Investment Report Summary includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The Fair Value Measurement Report categorizes investments with the fair value hierarchy established by generally accepted accounting principles. The total average yield for the month ending February 28, 2017 is 1.05%. The overall increase in the investment balance from the previous month is approximately $105,000. A larger balance includes an increase in the Water Operating Fund of $357,478, due positive net effect between operating revenues and expenses through the reporting month. While the Water Capital Project Reserve decreased by $218,283 due to Pay -As -You -Go status for payments related to capital improvements and other related capital purchases. The Conservation Reserve Fund decreased by $37,718, due to conservation related costs. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: Name: Invst Rot 2-17.xlsx Invst Agenda Backup - February 2017.xlsx Fair Value Measurement Reoort 2-17.xlsx Description: Type: Cash and Investments Report for the Month Ending February 28, 2017 Backup Material Cash and Investments Summary Report February 2017 Backup Material Fair Value Measurement Report for the Month Ending February 28, 2017 Backup Material Yorba Linda Water District Cash & Investment Portfolio Report February 28, 2017 Market % Date of Percent Value Par of Total institution Maturity Yield Checking Account: $ 429,053 $ 429,053 Wells Fargo Bank 45,419 45,419 Pershing $ 474,471 $ 474,471 1.34% Total 0.00% Money Market Accounts: $ 46,100 952,548 46,100 952,548 US Bank (Revenue Bonds) Bank of the West CIT Bank, Salt Lake 0.15% 0.08% $ 998,648 $ 998,648 2.82% Total 248,000 0.08% Federal Agency Securities: 1.19% $ 248,275 248,000 $ 498,055 500,000 Federal Home Loan Bank 06/12/18 1.00% $ 499,690 500,000 Federal Home Loan Bank 06/13/18 1.10% $ 496,765 500,000 Federal Home Loan Bank 11/26/19 1.35% $ 2,116,502 $ 2,124,676 Federal Home Loan Bank 05/24/17 0.87% $ 3,611,012 $ 3,624,676 10.20% Total 249,000 0.99% Certificates of Deposits: $ 248,275 $ 248,000 CIT Bank, Salt Lake 05/22/18 1.19% $ 248,637 248,000 Discover 05/22/18 1.19% $ 248,275 248,000 Goldman Sachs Bank 05/22/18 1.19% $ 248,729 248,000 Beal Bank 05/23/18 0.99% $ 249,808 247,000 Barclays Bank 04/30/18 0.98% $ 248,918 248,000 State Bank of India 05/14/18 1.14% $ 248,450 249,000 Webster Bank 05/03/18 0.90% $ 248,697 248,000 American Express Centurion Bank 05/23/18 1.19% $ 247,968 248,000 GE Capital Bank 05/24/18 1.10% $ 249,102 249,000 Merrick Bank 05/24/17 0.74% $ 248,188 248,000 BMW Bank 05/24/17 0.89% $ 248,801 249,000 Oriental Bank & Trust 05/29/18 1.05% $ 248,691 249,000 Silvergate Bank 05/30/18 1.00% $ 248,641 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.00% $ 248,674 249,000 Safra National Bank 05/31/18 1.00% $ 247,638 248,000 Townebank Portsmouth 05/31/18 1.00% $ 248,646 249,000 Mascoma Savings Bank 05/29/18 1.00% $ 100,402 100,000 Ally Bank Midvale Utah 12/11/17 1.54% $ 198,876 200,000 World's Foremost Bk Sydney 05/28/19 1.30% $ 247,477 248,000 Capital One Bk USA Natl Assn 05/13/19 1.20% $ 245,927 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.67% $ 244,769 248,000 EnerBank USA Salt Lake City 08/26/20 1.31% $ 245,959 248,000 EverBank Jacksonville Fla CTF 08/30/19 1.15% $ 179,947 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.25% $ 242,772 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.63% $ 5,932,268 $ 5,943,000 16.76% Total 1.13% Pooled Investment Accounts: $ 5,466,442 $ 5,466,442 Local Agency Investment Fund 0.78% 263,094 263,037 Ca1TRUST Short Term 0.96% 18,640,942 18,696,165 Ca1TRUST Medium Term 1.20% $ 24,370,479 $ 24,425,644 68.87% 1.10% $ 35,386,879 $ 35,466,440 100% Total Investments 1.05% Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. 4 J. 7rv-�� Kelly D. McCann, Senior Accountant 2/28/17 Cash & Investment Summary Report Below is a chart summarizing the yields as well as terms and maturities for the month of February 2017: Average # of Month Portfolio Days to of 2017 Yield Maturity February 1.05% 156 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 2/28/2016 2/28/2017 Monthly - February $ 20,130 $ 23,295 Year -to -Date $ 153,863 $ 211,081 Budget 2015/2016 2016/2017 Interest Budget, February YTD $ 62,000 $ 76,667 Interest Budget, Annual $ 93,000 $ 115,000 Interest earned on investments is recorded in the fund that owns the investment. Cash & Investment Summary Comparison Between Current and Previous Month The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: Total of $35.3 million in cash and investments which is split between minimum reserve requirements and what is available to meet current year obligations (operating costs, debt service, capital costs). Reserve Cash and Requirements Investments January 2017 % Alloc February 2017 % Alloc "Conditional Available for Fund Description Balance 1/31/2017 Balance 2/28/2017 Use" CY Obligations Water Operating Reserve $ 5,943,349 17.05% $ 6,280,602 17.97% $ 4,132,257 2,339,502 Water Emergency Reserve 1,042,811 2.99% 1,043,786 2.99% 1,042,888 898 Water Capital Project Reserve 16,633,179 47.71% 16,414,896 46.96% 1,820,000 14,594,896 Water Reserve for Debt Service 2,765,424 7.93% 2,770,850 7.93% 2,723,509 47,341 Maintenance Reserve 201,165 0.58% 201,165 0.58% 200,000 1,165 Water Employee Liability Reserve 372,011 1.07% 372,022 1.06% 372,000 22 Conservation Reserve 1,380,723 3.96% 1,343,004 3.84% 0 1,343,004 COP Revenue Bond 2008 - Reserve 2,163,231 6.20% 2,162,602 6.19% 2,147,096 15,506 Sewer Operating Reserve 423,753 1.22% 411,043 1.18% 239,825 409,114 Sewer Emergency Reserve 997,605 2.86% 999,305 2.86% 1,000,000 (695) Sewer Employee Liability Reserve 28,128 0.08% 28,128 0.08% 28,000 128 Sewer Capital Project Reserve 2,915,048 8.36% 2,930,422 8.38% 345,000 2,585,422 $ 34,866,426 100.00% $ 34,957,826 100.00% $ 14,050,575 21,336,304 Wells Fargo Bank Checking Water Operating 170,933 191,158 Sewer Operating 244,484 237,895 415,417 429,053 Totals $ 35,281,843 $ 35,386,879 Yorba Linda Water District Fair Value Measurement Report February 28, 2017 CalTR UST Investment Pool Local Agency Investment Fund U.S. Government Sponsored Agency Securities Negotiable Certificates of Deposit Held by Bond Trustee: U.S. Government Sponsored Agency Securities $ - $ 18,904,037 $ - 5,466,442 - 1,494,510 5,932,268 2,116,502 $ 18,904,037 - 5,466,442 - 1,494,510 - 5,932,268 - 2,116,502 Total Investments $ - $ 33,913,759 $ - $ 33,913,759 Quoted Observable Unobservable Prices Inputs Inputs Investments Level 1 Level 2 Level 3 Total CalTR UST Investment Pool Local Agency Investment Fund U.S. Government Sponsored Agency Securities Negotiable Certificates of Deposit Held by Bond Trustee: U.S. Government Sponsored Agency Securities $ - $ 18,904,037 $ - 5,466,442 - 1,494,510 5,932,268 2,116,502 $ 18,904,037 - 5,466,442 - 1,494,510 - 5,932,268 - 2,116,502 Total Investments $ - $ 33,913,759 $ - $ 33,913,759 Meeting Date Subject: ATTACHMENTS: Name: AGENDA REPORT March 28, 2017 ITEM NO. 9.3 CA Supreme Court Decision Regarding Application of Public Records Act to Personal Devices San Jose PRA Case Presentation. odf Description: Backup Material Distributed Less Than 72 Hours Prior to the Meeting Type: Backup Material The Public Records Act and Communications on Private/Personal Devices Public life after City of San Jose v. Superior Court 30 Main Street, Suite 1300 Irvine, CA 92614 (714) 755-3100 The Purpose of the Act: To give the public access to information that enables them to monitor the functioning of their government. Presumption of Disclosure: The Act's fundamental precept is that governmental records shall be disclosed to the public unless there is a legal basis not to do so. What Must be Disclosed: Any writing containing information relating to the public's business that is prepared, used, or retained in the course of business regardless of form or characteristic (e.g. digital or paper format). 2 ❖ The Court's Ruling: The Public Records Act applies to (a) records related to public business (b) held in a public employee's personal email account or electronic devices. •:� Court's Reasoning: "if public officials could evade the law simply by clicking into a different email account, or communicating through a personal device, sensitive information could routinely evade public scrutiny." ❖The case takes immediate effect. 91 As challenging as the Supreme Court's ruling may sound, federal employees are already subject to a similar duty under the Freedom of Information Act. All of the traditional Public Records Act exclusions still apply to public records held on personal devices, including the deliberative process privilege, preliminary drafts, etc. The Supreme Court stated that a public agency, with an applicable policy, may rely on its employees to search their own records and devices. 4 The new Dolicv will reauire District Board and staff: Either to use or copy their government accounts for all communications touching on public business, and To forward any communications (emails, text messages, etc.) sent from, or received on, their personal devices to their government accounts within a certain period of time (e.g. to days). Designated employees and Board Members should have a District e-mail account. The policy should also address use of private cell phones for public business. 01 The Brown Act applies to all communications, including communications on personal electronic devices. Board and staff must continue not to communicate with members of the public on their personal devices to facilitate a discussion between a majority of Board Members (i.e. "hub - and -spoke" meeting). * Board and staff must continue not to copy a majority of the Board on their personal electronic devices (i.e. "daisy chain" meeting). 6 How far down the organizational chart does the ruling go? Is every employee or agent of a government entity subject to this new rule? All public employees appear to be affected, but the scope of this new rule is yet to be determined. When does an individual employee need to search for records? Is it every boilerplate request? The Supreme Court stated that a public agency need only use "reasonable effort" to conduct its search. A reasonableness requirement should limit when employees must perform a search. Will the legislature intervene and change the Public Records Act in response to this ruling? 7 Bottom line: Don't use personal accounts to discuss public business ITEM NO. 11.4 AGENDA REPORT Meeting Date: March 28, 2017 Subject: Ad Hoc Citizens Advisory Committee • Minutes of meeting held March 8, 2017 at 6:00 p.m. • Minutes of meeting held March 21, 2017 at 7:00 p.m. (To be provided when available.) • Next meeting scheduled March 30, 3017 at 6:00 p.m. ATTACHMENTS: Description: Type: 2017-03-08 - Minutes - CAC.docx Minutes Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT AD HOC CITIZENS ADVISORY COMMITTEE MEETING Wednesday, March 8, 2016, 6:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The March 8, 2017 meeting of the Yorba Linda Water District's Ad Hoc Citizens Advisory Committee was called to order at 6:00 p.m. The meeting was held in the Training Room at the District's Administration Building located at 1717 East Miraloma Avenue, Placentia California 92870. 2. ROLL CALL 3. 4 COMMITTEE MEMBERS PRESENT Dennis Anderson Lindon Baker Jeff Decker Kent Ebinger Terry Harris YLWD STAFF PRESENT Fred Hebein William Lawrence Cristy Parker Kenneth Tam Delia Lugo, Finance Manager Cindy Botts, Management Analyst Malissa Muttaraid, Public Affairs Representative OTHER ATTENDEES Brent Ives, Principal, BHI Management Consulting PUBLIC COMMENTS None. DISCUSSION ITEMS 4.1 Facilitator/Staff Introductions 4.2. Committee Member Introductions 4.3. Committee Roles, Responsibilities and Procedures Primary discussions surrounded the issue of the scope of the committee's work and the true expectations of the Board. Opinion ranged from looking at rate levels to only considering and recommending rate structures or models or both. Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held March 8, 2017 at 6:00 p.m. Some committee members desired to examine District financial conditions, current rates and the basis for those rates to advise the Board on rate levels. Another member handed out tables from the District for the District's 2015/16 budget year with specific questions. Other members were primarily interested in recommending rate structures and models. It was discussed and agreed that some information at a detailed level regarding District budgeting and finance could be presented by staff to allow for background for either or both tasks. 4.4. Future Agenda Items Committee agreed to ask staff to answer questions regarding questions on the following topics at the next meeting: ■ FY 2015/16 budget table and specific questions. ■ Fiscal reserves, their construct and any policies pertaining. ■ The capital improvement program (CIP), how it is constructed and implemented as well as its basis and any policies pertaining. ■ Discussion of cost of service. ■ Debt policies. Committee also requested that staff from other agencies, who have previously experienced rate structure/model transitions, be allowed to address the committee in future meetings. One member, an employee of Inland Empire Utilities Authority mentioned that he knows of colleagues who would present on the subject. Las Virgenes Water District, Eastern Municipal Water District and Irvine Ranch Water District were also mentioned. These were to be contacted and scheduled for future meetings if possible. It was decided that all scope related items should remain until further guidance is received from the full District Board of Directors. The committee agreed that the full Board of Directors should be asked to clarify and better define the scope of work and expectations for the committee at its March 14, 2017 meeting. Staff indicated that they would evaluate placing that item for Board discussion at that meeting. 5. ADJOURNMENT 5.1. The meeting was adjourned at 8:00 p.m. The next Ad Hoc Citizens Advisory Committee meeting is scheduled to be held March 22, 2017 at 7:00 p.m. 1:31 Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held March 8, 2017 at 6:00 p.m. 2 ITEM NO. 13.1 AGENDA REPORT Meeting Date: March 28, 2017 Subject: Meetings from March 29, 2017 - June 30, 2017 ATTACHMENTS: Description: Type: BOD - Activities Calendar.pdf Backup Material Backup Material Board of Directors Activity Calendar Event March 2017 Yorba Linda Planning Commission ISDOC MWDOC Water Policy Forum Citizens Advisory Committee Meeting LAFCO April 2017 Yorba Linda City Council MWDOC OCSD Operations Committee OCWD TENTATIVE - AHCAC Meeting MWDSC Hoover Dam Tour WACO MWDSC Hoover Dam Tour MWDSC Hoover Dam Tour CA -NV AWWA Spring Conference CA -NV AWWA Spring Conference Board of Directors Regular Meeting CA -NV AWWA Spring Conference LAFCO Yorba Linda Planning Commission CA -NV AWWA Spring Conference Board of Directors Workshop Meeting YL City Council MWDOC OCWD MWDSC Spring Green Expo Board of Directors Regular Meeting MWDOC Elected Officials' Forum OCSD Yorba Linda Planning Commission Meet ACWA's President Event PA = Preauthorized AHCAC = Ad Hoc Citizens Advisory Committee Date Wed, Mar 29 Thu, Mar 30 Thu, Mar 30 Thu, Mar 30 Fri, Mar 31 Tue, Apr 4 Wed, Apr 5 Wed, Apr 5 Wed, Apr 5 Thu, Apr 6 Fri, Apr 7 Fri, Apr 7 Sat, Apr 8 Sun, Apr 9 Mon, Apr 10 Tue, Apr 11 Tue, Apr 11 Wed, Apr 12 Wed, Apr 12 Wed, Apr 12 Thu, Apr 13 Tue, Apr 18 Tue, Apr 18 Wed, Apr 19 Wed, Apr 19 Thu, Apr 20 Tue, Apr 25 Wed, Apr 26 Wed, Apr 26 Wed, Apr 26 Thu, Apr 27 Time Attendance by: 6:30PM Hawkins (As Needed) 11:30AM Jones/Miller/Nederhood (All Directors PA) 5:30PM Hawkins/Miller/Nederhood 6:OOPM Jones (All Directors PA) 9:OOAM Nederhood (As Needed) 6:30PM Nederhood 8:30AM Nederhood 5:OOPM Hawkins 5:30PM Jones 6:OOPM 7:15AM Jones/Nederhood 7:30AM Jones (All Directors PA) 7:OOAM Jones/Nederhood 7:OOAM Jones/Nederhood 8:OOAM Nederhood 8:OOAM Nederhood 5:30PM 8:OOAM Nederhood 8:OOAM Nederhood (As Needed) 6:30PM Hawkins (As Needed) 8:OOAM Nederhood 4:OOPM 6:30PM Hall 8:30AM Nederhood 5:30PM Jones 8:30AM 5:30PM 6:OOPM 6:OOPM Hawkins/Jones 6:30PM Hawkins (As Needed) 10:OOAM Hawkins/Nederhood 3/22/2017 6:04:11 PM Board of Directors Activity Calendar Event Date Time Attendance by: May 2017 Yorba Linda City Council Tue, May 2 6:30PM Hawkins MWDOC Wed, May 3 8:30AM Nederhood OCSD Operations Committee Wed, May 3 5:OOPM Hawkins OCWD Wed, May 3 5:30PM Jones WACO Fri, May 5 7:30AM Jones (All Directors PA) ACWA/JPIA Spring Conference Mon, May 8 8:OOAM ACWA/JPIA Spring Conference Tue, May 9 8:OOAM ACWA Spring Conference Tue, May 9 8:OOAM Board of Directors Regular Meeting Tue, May 9 5:30PM LAFCO Wed, May 10 8:OOAM Nederhood (As Needed) ACWA Spring Conference Wed, May 10 8:OOAM Yorba Linda Planning Commission Wed, May 10 6:30PM Hawkins (As Needed) ACWA Spring Conference Thu, May 11 8:OOAM ACWA Spring Conference Fri, May 12 8:OOAM YL City Council Tue, May 16 6:30PM Jones MWDOC Wed, May 17 8:30AM Nederhood OCWD Wed, May 17 5:30PM Jones Board of Directors Workshop Meeting Tue, May 23 4:OOPM Board of Directors Regular Meeting Tue, May 23 5:30PM OCSD Wed, May 24 6:OOPM Hawkins/Jones Yorba Linda Planning Commission Wed, May 24 6:30PM Hawkins (As Needed) Santa Ana River Watershed Conference Thu, May 25 9:OOAM Jones/Nederhood District Offices Closed Mon, May 29 7:OOAM June 2017 WACO Fri, Jun 2 7:30AM Jones (All Directors PA) Yorba Linda City Council Tue, Jun 6 6:30PM Miller MWDOC Wed, Jun 7 8:30AM Nederhood OCSD Operations Committee Wed, Jun 7 5:OOPM Hawkins OCWD Wed, Jun 7 5:30PM Jones Joint Committee Meeting with City of Yorba Linda Mon, Jun 12 4:OOPM Miller/Hawkins Board of Directors Regular Meeting Tue, Jun 13 5:30PM LAFCO Wed, Jun 14 8:OOAM Nederhood (As Needed) Yorba Linda Planning Commission Wed, Jun 14 6:30PM Hawkins (As Needed) OC Water Summit Fri, Jun 16 7:30AM YL City Council Tue, Jun 20 6:30PM Nederhood MWDOC Wed, Jun 21 8:30AM Nederhood OCWD Wed, Jun 21 5:30PM Jones Board of Directors Regular Meeting Tue, Jun 27 5:30PM OCSD Wed, Jun 28 6:OOPM Hawkins/Jones Yorba Linda Planning Commission Wed, Jun 28 6:30PM Hawkins (As Needed) ISDOC Thu, Jun 29 11:30AM Hawkins (All Directors PA) PA = Preauthorized AHCAC = Ad Hoc Citizens Advisory Committee 3/22/2017 6:04:11 PM ITEM NO. 14.1 AGENDA REPORT Meeting Date: March 28, 2017 Subject: MWDSC Spring Green Expo - April 20, 2017 Meet ACWA's President - April 27, 2017 Santa Ana River Watershed Conference - May 25, 2017 STAFF RECOMMENDATION: That the Board of Directors approve Director attendance at these events if desired. ATTACHMENTS: Name: Description: Type: MWDSC Spring Green Expo.pdf Backup Material Backup Material Meet ACWA President.0 Backup Material Backup Material SARW Conference.0f Backup Material Backup Material MWAM v o Grgdt o v r - A SHOWCASE FOR INNOVATIVE SUSTAINABILITY SOLUTIONS April 20, 2017, 8:30AM to 1:30PM The Metropolitan Water District of Southern California 700 North Alameda Street, Los Angeles, CA 90012 Welcome to Spring Green Expo 2017 For 10 years, Metropolitan Water District of Southern California has hosted this special event. Open to the public and free to attend, the program is an opportunity for Metropolitan employees, along with other agencies, businesses, conservation organizations, and the educational community to highlight their role as the innovators and providers of environmentally - friendly programs, products and services that save water and promote sustainability. The event will include a series of seminar presentations to educate attendees on the best and most promising ideas and solutions to conserve and protect water supplies. Students will compete in the Eco Innovators' Showcase which honors projects and innovative approaches to managing natural resources. 2017 Event Activities include: "Green" exhibits — highlighting technology, eco -friendly products, services and programs ECO Innovators' Showcase — highlighting sustainability projects created by Southern California college students. Click here to see the Eco Innovators' Showcase Winners Seminars — excellent guest speakers will conduct informative workshops on a diverse range of environmental topics Photo Expressions — in recognition of Water Awareness Month, a water -themed photo exhibit highlighting the extraordinary talent of Metropolitan's Photography Club members Seminars 9:00 a.m., Room 2-145 Water Conservation Challenges In Southern California Don't let the thought of mosquitoes scare you away from water conservation. Mark Daniel and Mark Hall are here to teach you all there is to know about the different types of mosquitoes and how to avoid them and the diseases they carry. In addition, they will touch on storm water management practices, non -storm flow water retention and rain barrel distributions from the vector standpoint. Guest Speaker: Mark Daniel; Mark Hall Greater Los Angeles County Vector Control District (GLACVCD) www.glacvcd.org 10:00 a.m., Room 2-456 Spring Garden Planning Learn tips and tricks for skillfully planning out your spring garden each year with Christy Wilhelmi of Gardenerd. She'll show you the best crops to grow now, how to organize your garden efficiently for high yields, and share her best advice for a successful spring/summer garden. Guest Speaker: Christy Wilhelmi Gardenerd www.gardenerd.com 11:00 a.m., Room 2-145 Reclaiming our Connection to the LA River Learn how River LA integrates design and infrastructure to bring people, water, and nature together along the Los Angeles River. Treating the river as core to our health, vibrancy, and resilience will allow us to unlock tremendous public health benefits and miles of unbroken green space, while improving our water quality and supply. Join River LA's Creative Director Eli A. Kaufman as he explores the challenges and opportunities of a reimagined LA River for everyone. Guest Speaker: Eli Kaufman River LA www.RiverLA.org Dear Marc, Please join me at the upcoming Meet the President event in your area on April 27th. ACWA members are a passionate group, united in our mission to work for a reliable water future for California. One of my top priorities as ACWA President is to ensure that members feel connected. With that goal in mind, I plan on spending as much time as possible interacting with ACWA members in the field. I am working with ACWA staff to create opportunities for engagement through a special Meet the President initiative over my two-year term, fostering open dialog to hear from members in every part of the state. We invite you to bring others from your own district who may also be interested in attending this event. Meet the President Date: Thursday, April 27, 2017 Hosted by: Santa Margarita Water District Location: 26111 Antonio Parkway Rancho Santa Margarita, CA 92688 10:30 to 11:30 am Please RSVP to Brandon Ida at brandoni@acwa.com by Friday, April 21, 2017 I am excited about this opportunity and look forward to meeting with you. Sincerely, ACWA President IantMaA naRiver W�ater�shed Con�f�erence 215Y Century Water S:tprategy: Working Together to Make a Finite Resource Infinite L 7rSAWPA WATER EDUCATION FOUNDATION Convened by the Santa Ana Watershed Project Authority and Coordinated by the Water Education Foundation May 25, 2017 Ontario Convention Center Together We Can Achieve Our Goals Join us to discuss the importance of the Santa Ana River Watershed and how, through powerful partnerships, we can find resilient solutions to improve the quality and reliability of our water supply What will be discussed? Defining the 21 St Century Water Strategy Mapping water use, making the watershed resilient Showcasing region's ambitious integrated projects Getting ready for Proposition 1 funding Serving underserved and disadvantaged communities Sponsorship and exhibitor opportunities are available for this one -day conference with a wide array of benefits. For more information on these opportunities, contact Beth Stern at the Water Education Foundation at bstern@watereducation.org or 916-444-6240.