HomeMy WebLinkAbout2017-10-10 - Board of Directors Meeting Agenda Packet (B)
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, October 10, 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. Introduction of Newly Hired Employees
5.2. 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 August 8, 2017
Recommendation: That the Board of Directors approve the minutes as presented.
7.2. Minutes of the Board of Directors Regular Meeting Held August 22, 2017
Recommendation: That the Board of Directors approve the minutes as presented.
7.3. Minutes of the Board of Directors Workshop Meeting Held August 24, 2017
Recommendation: That the Board of Directors approve the minutes as presented.
7.4. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize disbursements in
the amount of $2,421,892.14.
7.5. Renewal of Auto and General Liability Insurance Policy with Association of California
Water Agencies Joint Powers Insurance Authority (ACWA-JPIA)
Recommendation: That the Board of Directors approve payment to ACWA-JPIA in
the amount of $227,720.17 for renewal of the District's auto and general liability
insurance policy through October 1, 2018.
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 Public Agency Retirement Services (PARS) Public Agencies Post-
Employment Benefits Trust and Adopting Pay Down Schedules for the District's Other
Post Employment Benefits (OPEB) and Public Employees' Retirement System (PERS)
Liabilities
Recommendation: That the Board of Directors:
(1) approve Resolution No. 17-32 adopting the Public Agencies Post-Employment
Benefits Trust administered by PARS, subject to review as to form by general
counsel;
(2) direct staff to make a payment in the amount of $247,599 in order to open the
PARS account and select the Moderate Risk Investment Strategy;
(3) adopt a 5 year pay down schedule for the District's OPEB liabilities, beginning
July 1, 2018, in the amount of $377,239;
(4) adopt a pay down schedule, in an annual amount and schedule to be
determined at the meeting, to prefund the District's PERS pension liabilities
beginning July 1, 2018; and
(5) direct staff to prepare a policy with pay down schedules for the District's OPEB
and PERS pension liabilities for consideration at the October 24, 2017 regular
meeting.
8.2. Construction Contract for the Drilling of Well 22
Recommendation: That the Board of Directors award the Construction Contract for
the Drilling of Well 22 to Bakersfield Well & Pump Company for $676,629.90, Job
No. J2009-22 #22.
8.3. Waterline Replacement for Tract 15199 at the Northwest Corner of La Palma Ave and
Camino de Bryant
Recommendation: That the Board of Directors authorize staff to proceed with
replacement of approximately 2,300 feet of waterline within Tract 15199 for an
estimated cost of $900,000.
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 Reports for the Month Ending August 31, 2017
9.2. Cash and Investment Report for Period Ending August 31, 2017
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 the meeting held September 28, 2017 at 4:00 p.m.
· Next meeting scheduled November 20, 2017 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Miller/Hawkins)
· Minutes of the meeting held September 18, 2017 at 4:00 p.m. (To be provided when
available.)
· Next meeting scheduled December 18, 2017 at 4:00 p.m. at YL City Hall.
11.3. Joint Agency Committee with City of Placentia
(Miller/Nederhood)
· Next meeting yet to be scheduled.
12. INTERGOVERNMENTAL MEETINGS
12.1. YL Mayor's Prayer Breakfast - September 14, 2017 (Jones/Miller/Nederhood)
12.2. ACWA Region 5 Tour - September 17, 2017 (Jones)
12.3. YL City Council - September 19, 2017 (Hall)
12.4. MWDOC - September 20, 2017 (Nederhood)
12.5. SDLA Governance Foundations Workshop - September 25, 2017 (Hall)
12.6. ISDOC Executive Committee - October 3, 2017 (Nederhood)
12.7. YL City Council - October 3, 2017 (Jones)
12.8. MWDOC Board - October 4, 2017 (Nederhood)
12.9. OCSD Operations Committee - October 4, 2017 (Jones)
12.10. MWDSC Infrastructure Inspection Trip - October 6, 2017 (Jones/Nederhood)
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from October 11 - December 31, 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 Infrastructure Inspection Trip - October 6, 2017
MWDOC Elected Officials' Forum - November 2, 2017
Recommendation: That the Board of Directors ratify and/or approve Director
attendance at these events if desired.
15. ADJOURNMENT
15.1. A Board of Directors Workshop Meeting has been scheduled Thursday, October 19,
2017 at 6:30 p.m. The next Regular Board of Directors Meeting will be held Tuesday,
October 24, 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.
ITEM NO. 7.1
AGENDA REPORT
Meeting Date: October 10, 2017
Subject:Minutes of the Board of Directors Regular Meeting Held August 8, 2017
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2017-08-08_-_Minutes_-_BOD.doc Minutes Minutes
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 1
2017-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, August 8, 2017, 6:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 6:30 p.m.
President Miller welcomed Brett Barbre as the District’s new Assistant General
Manager.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
J. Wayne Miller, President Brett Barbre, Assistant General Manager
Al Nederhood, Vice President Steve Conklin, Engineering Manager
Andrew J. Hall, Director Gina Knight, HR/Risk and Safety Manager
Brooke Jones, Director Delia Lugo, Finance Manager
Art Vega, Information Technology Manager
DIRECTORS ABSENT Annie Alexander, Executive Assistant
Phil Hawkins, Director Javier Martinez, Water Production Superintendent
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
Beth Haney, Councilmember, City of Yorba Linda
4. ADDITIONS/DELETIONS TO THE AGENDA
None.
5. INTRODUCTIONS AND PRESENTATIONS
5.1. Elected Official Liaison Reports
None.
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 2
6. PUBLIC COMMENTS
Ben Parker (resident) commented on potential conflicts of interest in association
with Assistant General Manager Barbre’s other positions in the water industry.
Assistant General Manager Barbre stated the matter had been analyzed by
MWDOC’s legal counsel, Best Best and Krieger, and no conflict of interest was
identified.
General Counsel Andrew Gagen stated that Kidman Law had also researched
the matter and determined there was no conflict of interest.
Assistant General Manager Barbre indicated that Best Best and Krieger’s opinion
letter would be available to the public once finalized.
General Counsel Gagen clarified that multiple legal opinions were obtained prior
to hiring Assistant General Manager Barbre.
Terry Harris (resident) commented on the potential need for Assistant General
Manager Barbre to recuse himself from certain decision making processes.
Assistant General Manager Barbre explained the level of detail to be included in
the opinion letter and his method for tracking time spent in each capacity.
Cristy Parker (resident) commented on potential conflicts of interest in
association with Assistant General Manager Barbre’s service on MWDSC and
MWDOC’s Board of Directors.
Jeff Decker (resident) commented on MWDSC’s funding strategy for the
agency’s other post-employment benefits (OPEB) liability and potential conflicts
of interest in association with Assistant General Manager Barbre’s service on
MWDSC’s Board of Directors.
David Ramocinski (resident) commented on the District’s historical import water
purchases from MWDOC and potential conflicts of interest in association with
Assistant General Manager Barbe’s multiple roles.
General Counsel Gagen and Assistant General Manager Barbre commented on
circumstances for which Mr. Barbre may need to recuse himself from the
decision making process at MWDSC and MWDOC Board meetings.
Pat Nelson (resident) commented on the recent hiring of Assistant General
Manager Barbre, spoke in favor of implementing a customer rebate program for
the purchase of water efficient devices in lieu of issuing a conservation credit.
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 3
Julia Shultz (resident) commented on the recent hiring of Assistant General
Manager Barbre and threats of litigation made against the District for the cost of
replacing landscape which was lost due to the emergency drought mandate.
Jay Grewal (resident) spoke in favor of issuing a conservation credit and
commented on his personal financial management experience.
Mark Schock (resident) commented on the District’s previous consideration of
budget based rate structures and provided suggestions for the next water and
sewer rate study.
7. CONSENT CALENDAR
Director Hall made a motion, seconded by Director Miller, to approve the
Consent Calendar. Motion carried 4-0-0-1 with Director Hawkins being absent.
7.1. Minutes of the Board of Directors Workshop Meeting Held June 8, 2017
Recommendation: That the Board of Directors approve the minutes as
presented.
7.2. Minutes of the Board of Directors Regular Meeting Held June 13, 2017
Recommendation: That the Board of Directors approve the minutes as
presented.
7.3. Payments of Bills, Refunds, and Wire Transfer
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $415,168.09.
7.4. Directors and General Manager Fees and Expenses Report for Fourth
Quarter FY 2016/17
Recommendation: That the Board of Directors receive and file the
Directors and General Manager Fees and Expenses Report for Fourth
Quarter FY 2016/17.
8. ACTION CALENDAR
8.1. Authorized Officers for Investments Held at Pershing
Staff explained that due to recent changes in personnel, a new resolution
identifying employees who are authorized to act on behalf of the District
pertaining to investments held at Pershing is required. Staff
recommended the Board consider listing the Assistant General Manager
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 4
in addition to the General Manager as authorized employees should the
Finance Manager/Treasurer not be available.
Discussion regarding the District’s investment policy and associated
internal controls followed.
The Board voted 4-0-0-1 on a Roll Call with Director Hawkins being
absent, to adopt Resolution No. 17-27 authorizing the General Manager,
Assistant General Manager and Finance Manager to act on behalf of the
District relating to District investments held at Pershing, LLC and
rescinding Resolution No. 14-12.
8.2. AB 1000 – Water Conveyance: Use of Facility With Unused Capacity
(Nederhood)
Staff reviewed the components and status of the bill, including issues of
concern for the District. Staff also identified agencies supporting and
opposing the bill and recommended the Board consider adopting an
“oppose” position.
Ben Parker (resident) commented on potential conflicts of interest in
association with Assistant General Manager Barbre’s elected positions
and differing political opinions that may exist or arise between agencies.
Assistant General Manager Barbre noted he had recused himself from the
vote when this matter was considered by MWDOC’s Board of Directors.
Vice President Nederhood explained why he requested this matter to be
placed on the agenda.
Pat Nelson (resident) spoke in favor of opposing the bill.
Julia Schultz (resident) thanked Vice President Nederhood for his efforts
in relation to this matter.
Terry Harris (resident) spoke in favor of taking no stand on the bill.
Laer Pearce, consultant for Cadiz, Inc., commented on the number of
agencies opposing the bill. He also explained the impact on the Cadiz
Valley water project and the precedent that would be set should the bill
pass.
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 5
Director Hall made a motion, seconded by Director Nederhood, to adopt
an “oppose” position and instruct the General Manager to communicate
the position of the Yorba Linda Water District to the Santa Margarita Water
District, and to empower the President or General Manager to sign any
coalition letters in opposition to AB 1000. Motion carried 4-0-0-1 with
Director Hawkins being absent.
8.3. Adjusting Time of Regular Meetings and Establishing Time for
Adjournment (Miller)
President Miller explained that this matter had been placed on the agenda
in order to discuss potentially adjusting the commencement time of regular
meetings and establishing a set time for adjournment. He noted the City
of Yorba Linda’s existing policy to end regular Council meetings at or
before 11:00 p.m.
Pat Nelson (resident) spoke against adjusting the time of regular meetings
earlier than 6:30 p.m. and in favor of the Board considering the
continuation of any remaining items on the agenda should the meeting last
to 11:00 p.m.
Councilmember Beth Haney indicated she would not be able to attend the
District’s regular meetings if they were scheduled earlier than 6:30 p.m.
and would have to relinquish her appointment as the City’s primary
delegate to YLWD.
Discussion followed regarding the current commencement time for regular
meetings, the continuation of items on the agenda should the meeting be
adjourned prior to consideration, and limiting the total time of external
presentations.
Director Nederhood made a motion, seconded by Director Jones, to keep
the commencement time for closed sessions at 5:30 p.m. and regular
meetings at 6:30 p.m. and to continue items not considered by 11:00 p.m.
to the next regular meeting.
Brief discussion ensued regarding the handling of time sensitive items if
not considered by the time of adjournment, leaving the policy as is, placing
time sensitive items at the beginning of the agenda, considering items out
of order, and extending the time of adjournment if necessary.
Motion carried 4-0-0-1 with Director Hawkins being absent.
President Miller noted that the Board of Directors Policies and Procedures
Manual would need to be amended to reflect this change.
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 6
9. DISCUSSION ITEMS
9.1. Update of Procurement and Purchasing Policy
Staff provided an overview of the major sections contained in the current
policy and suggested revisions, including integration of best management
practices as recommended by the Government Finance Officers
Associations. The revisions would also provide staff with additional
flexibility while at the same time enhancing accountability.
Discussion followed regarding the suggested procurement limits and
contract signature authority, including those of the General Manager as
compared to other local water agencies, and the process for initiating and
approving purchase orders. Staff was instructed to include the
procurement limits of comparative agencies with the next agenda report
for this matter.
Jeff Decker (resident) commented on the District’s competitive bidding
practices and spoke in favor of hiring a purchasing agent.
Brief discussion followed regarding the competitive bid and selection
process for construction of the Fairmont Booster Pump Station Upgrade
Project and various sections of the revised policy.
Cristy Parker (resident) commented on provisions against dividing
contracts in order to avoid exceeding procurement limits, and the
procurement process for professional services totaling more than $75K.
Discussion ensued regarding YLWD’s status as a County Water District
and associated exemptions relative to the competitive bid process and
sole source procurement; reviewing the policy on an annual basis;
compiling a report of the number of sole source contracts awarded during
the last few years grouped by current procurement limits; removing
references to specific credit card types; identifying procedures for verifying
contractor references; defining non-discretionary purchases where
referenced; requiring General Manager or Assistant General Manager
authorization for exemptions from the competitive bid process for
contracts not requiring Board approval; and providing the Board with
formal notification of such exemptions for contracts totaling more than
$25K.
9.2. Timeline for Updating Strategic Plan (Nederhood)
The Board discussed scheduling monthly workshop meetings through
December in order to update the District’s strategic plan. They also
discussed potential areas of focus and complimentary documents such as
the Asset Management and Capital Improvement Plans.
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 7
Terry Harris (resident) spoke in favor of involving the public in the strategic
planning process.
Staff noted that a Request for Proposals (RFP) had been issued for
updating the District’s Asset Management Plan. Completion is expected
end of February 2018.
The Board determined to schedule the first workshop meeting the end of
August to discuss the scope of the new strategic plan, whether or not to
utilize the services of a facilitator, and the schedule for future workshop
meetings.
Jay Grewal (resident) spoke in favor of reviewing the strategic plan every
other year and utilizing the document to engage and inform the public.
9.3. Development of Water Shortage and Drought Response Plan (Jones)
Director Jones reviewed some key points he had prepared regarding the
utilization of a budget based rate structure in the future development of a
drought response plan.
Julia Schultz (resident) spoke against the utilization of budget based rate
structures and commented on the potential negative impact on water
rates.
Terry Harris (resident) spoke in favor of implementing a budget based rate
structure on a permanent basis instead of temporarily during times of
drought.
Pat Nelson (resident) spoke against the utilization of budget based rate
structures and commented on the difficulties of managing same.
Jay Grewal (resident) suggested including a drought response component
in the District’s new strategic plan and spoke in favor of controlling the
water rates.
Ben Parker (resident) spoke in favor of including the gradual
implementation of a budget based rate structure in the new strategic plan.
Greg Shultz (resident) commented on the need for additional water
storage infrastructure in the state and suggested water agencies create a
coalition to address this matter with legislators.
Discussion followed regarding the District’s plan for addressing the
drought prior to state-mandated conservation during the emergency
declaration; Proposition 218 requirements for enabling the District to
switch from a uniform to a budget based rate structure during times of
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 8
water shortage and drought; alternative methods for encouraging water
use efficiency; the potential for increased regulation associated with the
state’s long-term framework for conservation; and the District’s associated
data collection and analysis efforts.
9.4. Comparison of Retail Water Rates (Miller)
Staff reviewed multiple reasons for differences between agencies retail
water rates.
David Ramocinski (resident) thanked for President Miller for including this
matter on the agenda and expressed an interest in additional information
regarding the differences in water rates between the District and City of
Anaheim.
Following discussion, staff offered to obtain this information for
presentation at the next regular meeting.
Jay Grewal (resident) suggested comparing both agencies fixed and
variable costs.
10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1. Directors' Reports
Vice President Nederhood shared his concerns related to potential
increased regulation associated with the state’s long-term framework for
conservation.
10.2. General Manager's Report
Each of the managers (or their designee) reported on activities within their
respective departments.
Assistant General Manager Barbre reported on the status of various
administrative activities and presented the Board with a draft copy of a
letter in support of Orange County Sanitation District’s request for federal
funding for the agency’s Effluent Reuse Implementation Project. He also
noted that the District had received a request for a letter supporting the
candidacy of Association of California Water Agencies’ Vice Chair Brent
Hastey for the position of Chair in the upcoming election.
10.3. General Counsel’s Report
None.
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 9
10.4. Future Agenda Items and Staff Tasks
Vice President Nederhood inquired as to the status of obtaining bids from
ADP and similar vendors for outsourcing payroll and the preparation of an
RFP for legal services.
Director Hall requested staff enhance customer awareness of available
rebate programs for the purchase of water efficient devices. Staff offered
to provide a presentation regarding the District’s conservation related
activities and other local programs available to customers at a future
meeting.
Vice President Nederhood requested staff compile an employee turnover
analysis for the previous four years.
11. COMMITTEE REPORTS
11.1. Interagency Committee with MWDOC and OCWD
(Miller/Nederhood)
Minutes of the meeting held July 27, 2017 at 4:00 were included in
the agenda packet.
Next meeting is scheduled September 28, 2017 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Miller/Hawkins)
Minutes of the meeting held June 12, 2017 at 4:00 p.m. will be
provided when available.
Next meeting is scheduled September 18, 2017 at 4:00 p.m. at YL
City Hall.
11.3. Joint Agency Committee with City of Placentia
(Miller/Nederhood)
Next meeting yet to be scheduled.
12. INTERGOVERNMENTAL MEETINGS
The Directors reported on their attendance at the following meetings.
12.1 MWDOC/OCWD Joint Planning Committee – July 26, 2017 (Nederhood/Jones)
12.2 OCSD Board – July 26, 2017 (Hawkins)
Minutes of the YLWD Board of Directors Regular Meeting Held August 8, 2017 at 6:30 p.m. 10
12.3. ISDOC Executive Committee – August 1, 2017 (Nederhood)
12.4. YL City Council – August 1, 2017 (Jones)
12.5. MWDOC Board – August 2, 2017 (Nederhood)
12.6. OCWD Board – August 2, 2017 (Jones)
12.7. WACO – August 4, 2017 (Jones/Miller/Nederhood)
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from August 9 – October 31, 2017
The Board reviewed the activity calendar and made no changes.
14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS
14.1. YL Mayor’s Prayer Breakfast – September 14, 2017
Director Hall made a motion, seconded by Director Miller, to approve
Director attendance at this event if desired. Motion carried 4-0-0-1 with
Director Hawkins being absent.
15. ADJOURNMENT
15.1. The meeting was adjourned at 10:04 p.m.
Annie Alexander
Assistant Board Secretary
ITEM NO. 7.2
AGENDA REPORT
Meeting Date: October 10, 2017
Subject:Minutes of the Board of Directors Regular Meeting Held August 22, 2017
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2017-08-22_-_Minutes_-_BOD.doc Minutes Minutes
Minutes of the YLWD Board of Directors Regular Meeting Held August 22, 2017 at 6:30 p.m. 1
2017-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, August 22, 2017, 6:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 6:33 p.m.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
J. Wayne Miller, President Marc Marcantonio, General Manager
Al Nederhood, Vice President Brett Barbre, Assistant General Manager
Andrew J. Hall, Director Steve Conklin, Engineering Manager
Phil Hawkins, Director John DeCriscio, Operations Manager
Brooke Jones, Director Gina Knight, HR/Risk and Safety Manager
Delia Lugo, Finance Manager
Art Vega, Information Technology Manager
Annie Alexander, Executive Assistant
Malissa Muttaraid, Public Affairs Representative
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
Tom Lindsey, Councilmember, City of Yorba Linda
4. ADDITIONS/DELETIONS TO THE AGENDA
None.
5. INTRODUCTIONS AND PRESENTATIONS
5.1. Elected Official Liaison Reports
Councilmember Tom Lindsey commented on the recent conservation
credit applied to customers’ water accounts and reported on the City’s
abandonment of certain landscape easements.
The Board presented Councilmember Lindsey with an oversized check
representing a $20,407.14 conservation credit to the City of Yorba Linda.
Minutes of the YLWD Board of Directors Regular Meeting Held August 22, 2017 at 6:30 p.m. 2
Assistant General Manager Barbre, in his role as Director, reported on
recent MWDSC and MWDOC activities. He stated that MWDSC had
released a third white paper on the financial implications of the California
WaterFix and reported on the status of litigation with the San Diego
County Water Authority.
6. PUBLIC COMMENTS
None.
7. CONSENT CALENDAR
Director Hawkins made a motion, seconded by Director Hall, to approve the
Consent Calendar. Motion carried 5-0.
7.1. Minutes of the Board of Directors Workshop Meeting Held June 19, 2017
Recommendation: That the Board of Directors approve the minutes as
presented.
7.2. Minutes of the Board of Directors Special Meeting Held June 27, 2017
Recommendation: That the Board of Directors approve the minutes as
presented.
7.3. Payments of Bills, Refunds, and Wire Transfer
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $1,567,270.40.
7.4. Request to File Notice of Completion for the Richfield Road Water Main Project
Recommendation: That the Board of Directors authorize staff to file the
Notice of Completion for construction of the Richfield Road Water Main
Project, Job No. J2014-23.
8. ACTION CALENDAR
8.1. Establishing Time of Adjournment for Regular Board Meetings
Staff explained the Board had previously determined to establish a time of
adjournment for regular meetings.
The Board discussed making some minor revisions to the resolution,
including incorporating language from the Yorba Linda City Council’s
meeting agendas and setting a limit on the length of meetings rather than
specifying a time of day.
Minutes of the YLWD Board of Directors Regular Meeting Held August 22, 2017 at 6:30 p.m. 3
Councilmember Lindsey commented on the City’s process for handling
lengthy Council meetings.
Following further discourse, the Board determined to amend the resolution
allowing any Director to make a motion to complete an item under
discussion during meetings lasting more than four hours from the time of
commencement. All remaining items on the agenda which had not been
acted upon would be continued to the next regular meeting.
Director Hall made a motion, seconded by Director Hawkins, to approve
Resolution No. 17-28 as amended establishing a time of adjournment for
regular meetings and amending Resolution No. 16-12. Motion carried 5-0
on a Roll Call vote.
8.2. Adding the Position of Assistant General Manager to the District’s Conflict
of Interest Code
Staff explained that similar to the action taken at the preceding Public
Financing Corporation and Financing Authority meetings, this item was
simply a housekeeping matter.
Director Hawkins made a motion, seconded by Director Hall, to approve
Resolution No. 17-29 adopting a Conflict of Interest Code for the Yorba
Linda Water District and rescinding Resolution No. 16-22. Motion carried
5-0 on a Roll Call vote.
8.3. Updating the District’s Purchasing Policy
Staff explained that revisions requested by the Board during the previous
regular meeting had been incorporated into the policy. Included is a form
for notifying the Board of sole source procurements of $25K or more.
Discussion followed regarding revising the expenditure authority limits, the
authorization process for budgeted versus non-budgeted and emergency
expenditures, and difficulties experienced by staff with the current
expenditure authority limits.
Staff reviewed revisions made to various sections of the policy.
Director Nederhood made a motion to accept staff’s recommendation with
the following adjustments to the expenditure authority limits in Table 1:
General Manager Up to $60,000
Assistant General Manager Up to $40,000
Department Managers Up to $25,000
Motion failed for lack of second.
Minutes of the YLWD Board of Directors Regular Meeting Held August 22, 2017 at 6:30 p.m. 4
Staff then provided a broad overview of the District’s processes and
criteria for requests for bids and proposals.
Director Hawkins made a motion, seconded by Director Hall, to approve
Resolution No. 17-30 adopting the Purchasing Policy as presented and
rescinding Resolution No. 13-03. Motion carried 4-0-0-1 on a Roll Call
vote with Director Nederhood voting No.
9. DISCUSSION ITEMS
9.1. Cash and Investment Report for Period Ending July 31, 2017
Staff noted a change in the Conservation Reserve due to the recent
conservation credit applied to customers’ water accounts.
The Board requested staff revise the Cash & Investment Summary Report
to include the target levels for all reserve categories.
Brief discussion followed regarding future revisions to the District’s reserve
policy.
10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1. Directors' Reports
Director Hawkins requested staff to include monthly cost information for 1”
meters and 19 units of water on a memo prepared for the Board regarding
local comparative water rates. Staff offered to prepare a more detailed
matrix with data for 5/8”, 3/4", and 1” meters and 10, 20, 30, 40 and 50
units of water for the listed agencies.
10.2. General Manager's Report
General Manager Marc Marcantonio asked each of the managers to report
on projects and accomplishments within their respective departments. He
then briefed the Board on the status of various administrative and
legislative activities.
10.3. General Counsel’s Report
General Counsel Andrew Gagen explained he had received a request to
provide the Board with a periodic update regarding the IRWD vs. OCWD
lawsuit. He stated there was nothing substantial to report and the parties
were in the midst of discovery. He also noted that his comments would be
limited to information available in the public domain and that any analysis
or pointed questions the Board may have should be reserved for Closed
Session. He then provided a general synopsis of the case.
Minutes of the YLWD Board of Directors Regular Meeting Held August 22, 2017 at 6:30 p.m. 5
10.4. Future Agenda Items and Staff Tasks
Director Jones requested an action item be placed on the agenda for the
September 12, 2017 Board meeting to address the disposition of the
District’s annual net income and potential customer refund. He also
requested an action item for the same meeting to address management of
the District’s unfunded accrued liabilities. Following brief discussion, the
Board agreed to discuss future consideration of these items at the end of
the workshop meeting scheduled August 24, 2017.
Director Hall requested staff explore options for increased financial
transparency such as OpenGov within the next few months.
11. COMMITTEE REPORTS
11.1. Interagency Committee with MWDOC and OCWD
(Miller/Nederhood)
Next meeting is scheduled September 28, 2017 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Miller/Hawkins)
Minutes of the meeting held June 12, 2017 at 4:00 p.m. were
included in the agenda packet.
Next meeting is scheduled September 18, 2017 at 4:00 p.m. at YL
City Hall.
11.3. Joint Agency Committee with City of Placentia
(Miller/Nederhood)
Next meeting yet to be scheduled.
12. INTERGOVERNMENTAL MEETINGS
The assigned Directors did not attend the following meetings due to schedule
conflicts or their attendance was not necessary.
12.1 LAFCO – August 9, 2017 (Nederhood – As Needed)
12.2 YL Planning Commission – August 9, 2017 (Hawkins – As Needed)
12.3. YL City Council – August 15, 2017 (Miller)
12.4. MWDOC Board – August 16, 2017 (Nederhood)
Minutes of the YLWD Board of Directors Regular Meeting Held August 22, 2017 at 6:30 p.m. 6
12.5. OCWD Board – August 16, 2017 (Jones)
Directors Jones and Nederhood reported on their attendance at the following
conference.
12.6. UWI Annual Conference – August 16-18, 2017 (Jones/Nederhood)
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from August 23 – October 31, 2017
The Board reviewed the activity calendar and made no changes.
14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS
14.1. SWRCB Briefing – August 23, 2017
Director Hawkins made a motion, seconded by Director Hall, to approve
Director attendance at this event if desired. Motion carried 5-0.
15. ADJOURNMENT
15.1. The meeting was adjourned at 9:14 p.m.
Annie Alexander
Assistant Board Secretary
ITEM NO. 7.3
AGENDA REPORT
Meeting Date: October 10, 2017
Subject:Minutes of the Board of Directors Workshop Meeting Held August 24, 2017
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2017-08-24_-_Minutes_-_BOD.doc Minutes Minutes
Minutes of the YLWD Board of Directors Workshop Meeting Held August 24, 2017 4:30 p.m. 1
2017-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS WORKSHOP MEETING
Thursday, August 24, 2017, 4:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 4:32 p.m.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
J. Wayne Miller, President Marc Marcantonio, General Manager
Al Nederhood, Vice President Steve Conklin, Engineering Manager
Andrew J. Hall, Director John DeCriscio, Operations Manager
Phil Hawkins, Director Gina Knight, HR/Risk and Safety Manager
Brooke Jones, Director Delia Lugo, Finance Manager
Annie Alexander, Executive Assistant
Daniel Logsdon, Associate Engineer
Kelly McCann, Senior Accountant
Malissa Muttaraid, Public Affairs Representative
Rick Walkemeyer, IS Administrator
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
Robert Porr, Senior Vice President, Fieldman Rolapp & Associates
Paul Pender, Vice President, Fieldman Rolapp & Associates
Lora Carpenter, Senior Associate, Fieldman Rollap & Associates
Doug Brown, Partner, Stradling Yocca Carlson & Rauth
Engineering Manager Steve Conklin introduced Daniel Logsdon, newly hired for the
position of Associate Engineer.
4. PUBLIC COMMENTS
None.
President Miller commented on the status of Senate Bill 623 and an associated
article in the OC Register.
Minutes of the YLWD Board of Directors Workshop Meeting Held August 24, 2017 4:30 p.m. 2
5. DISCUSSION ITEMS
5.1. Long Range Financial Plan
Staff provided an overview of the topics to be covered during the
workshop.
Mr. Robert Porr briefly explained the benefits of developing a long range
financial plan.
Mr. Doug Brown then reviewed the role of federal regulators and the
progressively heightened attention to disclosure information contained in
official statements (OS) for bond offerings. He also reviewed credit rating
agencies’ considerations when determining ratings and conducting
surveillance and the potential impact of significant changes in the District’s
financial policies or projections. He noted that agencies typically go
through a strategic and/or long range financial planning process prior to
making such changes.
Jay Grewal (resident) commented on the normality of agencies routinely
revising their financial policies.
Discussion followed regarding the suggested timing and process for
considering the potential issuance of a customer refund of the District’s
net position for FY17, possible consequences of violating bond covenants,
and developing a plan for paying down the District’s unfunded accrued
liabilities.
Jay Grewal (resident) commented on legal and financial obligations
associated with bond covenants and various factors considered by credit
rating agencies.
Discussion continued concerning the estimated amount and future
management of the District’s unfunded accrued liabilities, the development
of a policy to address same, subjects to be addressed during the financial
planning process, ideal debt to equity ratios, and rating agencies’
methodologies for determining credit ratings.
Mr. Porr reviewed the purpose and benefits of a long range financial plan
and recommended the Board defer consideration of major changes in
financial policy until after the strategic planning process was complete.
Discussion ensued regarding the 2015 rate study and the District’s
financial model and historical debt covenant ratios.
Minutes of the YLWD Board of Directors Workshop Meeting Held August 24, 2017 4:30 p.m. 3
Mr. Porr continued reviewing the long range financial planning process
and associated elements, options, and phases. This included options for
paying down the District’s unfunded accrued liabilities, evaluating reserve
levels, debt management, and implementation.
Terry Harris (resident) spoke in favor of updating the strategic plan prior to
developing a long range financial plan, including pay down of unfunded
accrued liabilities in the FY18 budget, and issuing a customer refund of
the District’s net position for FY17.
Jay Grewal (resident) spoke in favor of updating the strategic plan prior to
developing a long range financial plan and commented on management of
the District’s debt covenant ratio and credit ratings.
Discussion continued on the suggested time period for the long range
financial plan, interest associated with the District’s pension liability, and
the potential benefits of establishing a trust with Public Agency Retirement
Services (PARS).
Director Jones reviewed some data and calculations he had compiled
based off the District’s historical Comprehensive Annual Financial Reports
and requested staff feedback. Staff offered to review the information and
report back at the next regular meeting.
Staff requested the Board consider development of a long range financial
plan in conjunction with updating the District’s strategic and asset
management plans (AMP) prior to considering the issuance of a customer
refund.
There was a lengthy discussion concerning potential revisions to the
District’s reserve levels, setting reserve targets, and recommended days
of cash on hand. Also discussed were YLWD’s debt covenant ratio and
unfunded accrued liabilities, and potential issuance of a customer refund.
Staff was then directed to provide the Board with a suggested minimum
days of cash on hand and alternatives for paying down the District’s
unfunded accrued liabilities.
Terry Harris (resident) spoke in favor of issuing a customer refund of the
District’s net position for FY17.
The Board requested staff include the following as discussion items on the
agenda for the September 12, 2017 meeting and action items on the
agenda for the September 26, 2017 meeting:
Management of District’s Unfunded Accrued Liabilities
Disposition of Annual Net Income and Potential Customer Refund
Minutes of the YLWD Board of Directors Workshop Meeting Held August 24, 2017 4:30 p.m. 4
Discussion of the District’s minimum and maximum reserve levels and
reserve targets was also requested to be placed on the September 12,
2017 meeting agenda.
Terry Harris (resident) suggested the Board take action on revisions to the
District’s reserve policy at the September 12, 2017 meeting.
5.2. July 2017 Budget to Actual Statements (To be provided at the meeting.)
No materials were provided at the meeting and discussion of this item was
deferred to the September 12, 2017 meeting.
6. ADJOURNMENT
6.1. The meeting was adjourned at 7:58 p.m.
Annie Alexander, Assistant Board Secretary
ITEM NO. 7.4
AGENDA REPORT
Meeting Date: October 10, 2017 Budgeted:Yes
To:Board of Directors Cost Estimate:$2,421,892.14
Funding Source:All Funds
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Reviewed by Legal:N/A
Prepared By:Richard Cabadas, Accounting
Assistant I
CEQA Compliance:N/A
Subject:Payments of Bills, Refunds, and Wire Transfers
SUMMARY:
Section 31302 of the California Water Code says the District shall pay demands made against it
when they have been approved by the Board of Directors. Pursuant to law, staff is hereby
submitting the list of disbursements for Board of Directors’ approval.
STAFF RECOMMENDATION:
That the Board of Directors ratify and authorize disbursements in the amount of $2,421,892.14.
DISCUSSION:
The items on this disbursement list includes: A wire of $444,594.74 to US Bank for 2012A revenue
bond principal & interest payment; $1,467,133.16 to US Bank for 2017A revenue bond principal &
interest payment; a check of $42,065.79 to City of Anaheim for August 2017 electricity charges at
multiple locations; and a check of $40,502.11 to Dell for PowerEdge servers & IT equipment. The
balance of $151,702.86 is routine invoices.
The Accounts Payable check register total is $2,145,998.66; Payroll No. 19 total is $275,893.48;
and the total of all listed disbursements for this agenda report is $2,421,892.14. A summary of the
disbursements is attached.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors approves bills, refunds and wire transfers semi-monthly.
ATTACHMENTS:
Name:Description:Type:
17-CS_1010.pdf Cap Sheet Backup Material
CkReg101017.pdf Check Register Backup Material
17_CC_1010.pdf Credit Card Summary Backup Material
Summary of Disbursements
October 10, 2017
CHECK NUMBERS & WIRES:
Computer Checks 70638—70738 $ 234,270.76
____________
$ 234,270.76
WIRES:
W092817 US Bank $ 444,594.74
W092817A US Bank $ 1,467,133.16
_____________
$ 1,911,727.90
TOTAL OF CHECKS & WIRES $2,145,998.66
PAYROLL NO. 19:
Direct Deposits $ 171,321.05
Third Party Checks 6777—6788 $ 18,705.42
Payroll Taxes $ 50,616.12
EFT – CalPERS Payroll #19 $ 35,250.89
$ 275,893.48
TOTAL OF PAYROLL $275,893.48
----------------------------------------------------------------------------------------------------------------------
DISBURSEMENT TOTAL: $2,421,892.14
==================================================================
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF OCTOBER 10, 2017
==================================================================.
Check No.Date Vendor Name Amount Description
70657 10/10/2017 ACWA/JPIA 230.44 EMPLOYEE BENEFIT FAIR - EVENT LIABILITY
70658 10/10/2017 Aqua-Metric Sales Co.23,576.57 WAREHOUSE STOCK
70659 10/10/2017 Aramark 403.75 UNIFORM SERVICE
70675 10/10/2017 ARC 101.21 J09-22#22 - WELL #22 - PW DOC/BID MANAGEMENT
70660 10/10/2017 AT & T - Calnet3 3,400.17 ATT CALNET3
70661 10/10/2017 Autoscribe Corporation 713.00 PAYMENT VISION GATEWAY
70662 10/10/2017 Bee Busters, Inc 125.00 BEE ABATEMENT - COMMERCIAL BUILDING
70663 10/10/2017 Best Drilling and Pump, Inc.12,015.00 BRUSH & BAIL - WELL #1
70664 10/10/2017 Biovir Laboratories Inc 440.00 MICROSCOPIC EXAMINATION
70653 10/10/2017 BRENT MARTZ 48.29 CUSTOMER REFUND
70655 10/10/2017 BRIAN DONLYUK 53.96 CUSTOMER REFUND
70642 10/10/2017 BRIANNA BORG 79.13 CUSTOMER REFUND
70665 10/10/2017 BrightView Tree Care Services Inc.1,775.00 LANDSCAPE SERVICE
70666 10/10/2017 Bryan Hong 117.66 GROUNDWATER CONTAMINATION CONFERENCE
70638 10/10/2017 BURT EDROZO 17.25 CUSTOMER REFUND
70649 10/10/2017 BYCOR GENERAL CONTRACTORS 1,063.30 CUSTOMER REFUND
70677 10/10/2017 C. Wells Pipeline 426.70 WATER SERVICE REPAIR PARTS
70667 10/10/2017 CalCard US Bank 19,015.25 AUGUST & SEPTEMBER 2017 - CREDIT CARD TRANSACTIONS
70668 10/10/2017 CDM Smith 4,342.16 J09-22#22 - WELL #22 - PROFESSIONAL ENGINEERING SERVICES
70669 10/10/2017 CDW Government, Inc 462.78 CISCO IP PHONE 8800 WALL MOUNT
70670 10/10/2017 Chambers Group Inc.4,827.75 PROFESSIONAL SERVICES - AUGUST 2017
70671 10/10/2017 City Of Anaheim 42,065.79 RICHFIELD & LAKEVIEW -ELECTRICITY CHARGES - 08/09/17 - 09/12/17
70672 10/10/2017 Clinical Lab. Of San Bern.460.00 LAB SAMPLES - AUGUST 2017
70651 10/10/2017 CMJ AMERICA CAPITAL LLC 46.64 CUSTOMER REFUND
70673 10/10/2017 Coastal Ignition & Controls 279.32 MAINTENANCE - HIGHLAND #1
70676 10/10/2017 Culligan of Santa Ana 5.70 PE EQUIPMENT SOFTENER
70678 10/10/2017 Dapper Tire Co. Inc.664.53 TIRE REPLACEMENT - UNIT #209
70679 10/10/2017 Dell Marketing L.P.40,502.11 POWEREDGE HOST SERVER, (2) SWITCHES & IT EQUIPMENT
70680 10/10/2017 DME Incorporated 3,898.05 EXHAUST EXPANSION JOINT
70640 10/10/2017 DONALD NEDERBURGH 58.69 CUSTOMER REFUND
70681 10/10/2017 Dunweizer Fabrication, Inc.4,841.49 MAINTENANCE - HIGHLAND #1
70652 10/10/2017 EDUARDO DURAN 65.49 CUSTOMER REFUND
70682 10/10/2017 Eisel Enterprises, Inc.2,848.92 METER BOXES/LIDS/VAULTS & VALVE REPAIR PARTS
70683 10/10/2017 Elite Equipment Inc 24.06 EQUIPMENT MAINTENANCE #E192
70639 10/10/2017 ELIZABETH RUDD 39.37 CUSTOMER REFUND
70684 10/10/2017 Employee Relations, Inc.477.55 PRE-EMPLOYMENT BACKGROUND INFORMATION
70685 10/10/2017 Fairway Ford Sales, Inc.210.82 VEHICLE MAINTENANCE - UNIT #195
70686 10/10/2017 Federal Express 141.54 SHIPPING FEES
70687 10/10/2017 Fieldman Rolapp & Associates 528.00 PROFESSIONAL SERVICES - PENSION FUNDING ANALYSIS
70688 10/10/2017 Fleet Services, Inc 644.63 VEHICLE MAINTENANCE - UNIT #168
70689 10/10/2017 Fry's Electronics 1,242.87 IT HARDWARE SUPPLIES
70656 10/10/2017 FUGUO WANG 44.46 CUSTOMER REFUND
70690 10/10/2017 Fullerton Paint & Flooring 277.48 CLEANING PAINTING SUPPLIES
70691 10/10/2017 Graybar Electric Co 502.06 PLC HARDWARE
70647 10/10/2017 GREG PELTON 3.53 CUSTOMER REFUND
70641 10/10/2017 GREG V SMITH 33.29 CUSTOMER REFUND
70692 10/10/2017 Haaker Equipment Co.598.46 VEHICLE MAINTENANCE - UNIT #168
70693 10/10/2017 Hach Company 726.27 CL2 PARTS
70694 10/10/2017 Harrington Industrial 493.55 PRODUCTION REPAIR PARTS
70696 10/10/2017 Hydrex Pest Control 175.00 PEST CONTROL
70697 10/10/2017 Infosend Inc.12,503.40 POSTAGE & BILLING
70698 10/10/2017 Jackson's Auto Supply - Napa 822.33 VEHICLE MAINTENANCE - UNITS #182, #197 & #210
70699 10/10/2017 John R Brundahl III 105.00 REIMBURSEMENT - D4 CERTIFICATE FEE
70643 10/10/2017 Karmen Donnally 100.81 CUSTOMER REFUND
70700 10/10/2017 KB Design 808.13 PPE EQUIPMENT
70701 10/10/2017 Konica Minolta Business 1,434.46 COPY CHARGES - C258 & C558
70702 10/10/2017 Lawson Products Inc 119.73 MECHANICS SHOP SUPPLIES
70703 10/10/2017 Liebert Cassidy Whitmore 3,557.10 LEGAL SERVICES
70738 10/10/2017 Liebert Cassidy Whitmore 70.00 LCW - WORKSHOP
70695 10/10/2017 MailFinance 292.29 HASLER LEASE #N17022170
70704 10/10/2017 Mc Fadden-Dale Hardware 164.25 HARDWARE SUPPLIES
70705 10/10/2017 Mc Master-Carr Supply Co.150.82 HARDWARE SUPPLIES
Yorba Linda Water District
Check Register
For Checks Dated: 09/27/2017 thru 10/10/2017
70674 10/10/2017 Merging Communications, Inc.576.25 TELCO/PHONE SERVICING
70706 10/10/2017 Minuteman Press 242.43 BUSINESS CARDS (3) - BARBRE, LOGSDON, & CUSTOMER SERVICE
70707 10/10/2017 MISCO 1,275.98 CL2 PARTS
70708 10/10/2017 Mouse Graphics 639.77 SEWER COMPOSITE MAP
70709 10/10/2017 NatPay Online Business Solutions 23.55 DOCULIVERY - AUGUST 2017
70710 10/10/2017 Nickey Kard Lock Inc 4,964.21 FUEL - 09/01/17 - 09/15/17
70711 10/10/2017 North Bay Pensions, LLC 3,000.00 DISTRICTS RETIREE MED BEN-CALC
70712 10/10/2017 Novusolutions 3,800.00 MAINTENANCE, UPGRADE & SUPPORT - NOVUS
70713 10/10/2017 Occu-Med, Ltd.231.00 OUT OF AREA EXAMS (2)
70714 10/10/2017 Orange County - HCA 440.50 HAZMAT DISCLOSURE & SVC CHARGE
70715 10/10/2017 Orvac Electronics 348.27 BATTERY REPLACEMENT
70720 10/10/2017 P.T.I. Sand & Gravel, Inc.2,732.41 ROAD MATERIAL - 3/4" CL2 BASE, +30 FILL SAND & COLD MIX ASPHALT
70716 10/10/2017 Partition Specialties Inc.2,730.00 SKYFOLD PARTITION - ADMINISTRATION WALL
70717 10/10/2017 Pete's Road Service Inc 202.56 VEHICLE MAINTENANCE - UNIT #134 & #198
70654 10/10/2017 PICR LP 301.78 CUSTOMER REFUND
70718 10/10/2017 Placentia Chamber Of Commerce 560.00 ANNUAL MEMBERSHIP
70737 10/10/2017 Powers Electric Products 93.48 PRODUCTION REPAIR PARTS
70719 10/10/2017 Powerstride Battery 147.03 VEHICLE MAINTENANCE - UNIT #162 & #195
70725 10/10/2017 Rachel Padilla/Petty Cash 418.00 PETTY CASH - O083117, O091417, Y091817 & O092617
70721 10/10/2017 Red Wing Shoe Store 400.00 SAFETY BOOT - (2) EMPLOYEES
70722 10/10/2017 RKI Engineering, LLC 1,800.00 SCADA SUPPORT
70723 10/10/2017 Safety-Kleen Systems Inc 471.02 HAZARDOUZ WASTE REMOVAL
70724 10/10/2017 Solarwinds Inc.2,012.00 SOLARWIND STORAGE RESOURCE MONITOR
70726 10/10/2017 Stater Bros. Markets 54.93 MEETING SUPPLIES
70727 10/10/2017 Step Saver Inc 350.38 COARSE SALT
70728 10/10/2017 Switch Ltd 521.00 DATA HOSTING - COLOCATION
70729 10/10/2017 Systems Source Inc 703.18 TOOLS & EQUIPMENT
70730 10/10/2017 Terryberry Company 151.17 EMPLOYEE RECOGNITION
70644 10/10/2017 THE FRESH MARKET 784.24 CUSTOMER REFUND
70731 10/10/2017 The Shredders 33.00 SHRED ON SITE SERVICE
70650 10/10/2017 TIANA MOORE 63.00 CUSTOMER REFUND
70645 10/10/2017 TOLL BROTHERS 937.50 CUSTOMER REFUND
70646 10/10/2017 TOLL BROTHERS 908.00 CUSTOMER REFUND
W092817 09/28/2017 U S Bank 444,594.74 2012A REVENUE BOND - PRINCIPAL & INTEREST PAYMENT
W092817A 09/28/2017 U S Bank 1,467,133.16 2017A REVENUE BOND - PRINCIPAL & INTEREST PAYMENT
70732 10/10/2017 United Industries 1,645.78 PPE EQUIPMENT & SUPPLIES
70734 10/10/2017 United Water Works, Inc.2,159.77 WAREHOUSE STOCK & WATER SERVICE REPAIR PARTS
70733 10/10/2017 USA Blue Book 1,103.41 TOOLS & EQUIPMENT
70648 10/10/2017 VERONICA RAMIREZ 174.48 CUSTOMER REFUND
70735 10/10/2017 Vivian Lim 21.17 MILEAGE REIMBURSEMENT - SEPTEMBER 2017
70736 10/10/2017 YO Fire 1,987.15 WAREHOUSE STOCK & MISCELLANEOUS WAREHOUSE PARTS
2,145,998.66
09-21-2017 PAYROLL #19 - EMPLOYEE DIRECT DEPOSIT 171,321.05
09-21-2017 PAYROLL #19 - PAYROLL TAX PAYMENT 50,616.12
09-21-2017 PAYROLL #19 - CALPERS EFT 35,250.89
6777 09-21-2017 COLONIAL LIFE 128.30
6778 09-21-2017 FLEX ADVANTAGE 1,914.72
6779 09-21-2017 LINCOLN FINANCIAL GROUP 4,452.05
6780 09-21-2017 NATIONWIDE RETIREMENT SOLUTIONS 8,271.33
6781 09-21-2017 GARNISHMENT 231.00
6782 09-21-2017 CA STATE DISBURSEMENT UNIT 366.92
6783 09-21-2017 CA STATE DISBURSEMENT UNIT 339.69
6784 09-21-2017 CA STATE DISBURSEMENT UNIT 404.30
6785 09-21-2017 AMERICAN HERITAGE LIFE 1,544.89
6786 09-21-2017 MIDLAND LIFE INSURANCE 240.00
6787 09-21-2017 RELIANCE DI 47.54
6788 09-21-2017 AMERITAS 764.68
275,893.48
Payroll Checks #19
Vendor Name Amount Description
Southwest Airlines 181.95 Travel expense - CRWUA Conference - Dir. Jones
Southwest Airlines 181.95 Travel expense - CRWUA Conference - Dir. Nederhood
Fitness Grill 102.51 New hire welcome lunch - 7 attendees
Southwest Airlines 181.95 Travel expense - CRWUA Conference - Marcantonio
AWWA 394.83 AWWA publication
Placentia Disposal 529.50 (2) Front loads - Richfield Rd
CRWUA 1,515.00 CRWUA Conference & membership dues - Jones, Nederhood, Marc
Caesar's Palace 438.78 Travel expense - CRWUA Conference - Nederhood, Jones & Marc
Ruby's Diner 59.76 Working lunch for staff & consultants - 4 attendees
Best Value Tire 90.62 Mount & balance tires - Unit #209
Answer 1, LLC 445.00 After hours answering service - September 2017
ServerSupply.com 1,800.00 Dell 32GB 2666 MHZ DDR4 MEMORY MODULE FOR SERVER
Omni La Costa Resort 866.70 Travel expense - Bond Buyers Conference - Marcantonio
Francisco Meat Co.182.40 Supplies - All Hands Meeting
Ralphs 5.18 Supplies - All Hands Meeting
Stater Bros 23.62 Supplies - All Hands Meeting
Northgate Market 166.32 Supplies - All Hands Meeting
GSE 76 21.54 Propane fuel
McCormick & Schmicks 153.00 Lunch meeting with Golden State Water - 3 attendees
The Toll Roads of Orance County 7.90 Toll fee - NIMS, SEMS, ICS training
Home Depot 83.66 Equipment supplies
Energy Environmental Solutions 2,400.00 Engine emissions test
Snap-On Industrial 36.12 Tools & equipment
LighBulbs, Etc 502.33 (36) Light bulbs for facilities
Schorr Metals 32.76 Material - metal
Praxair Distribution 137.86 Welding supplies
Hasco 166.92 (2) 10 pk of Mobil grease for production
USA BlueBook 189.59 (2) Locking security case for SCADA
Best Value Tire 75.62 Mount & balance tires - Unit #182
FedEx 258.88 Shipment fee - returning items back to CDW
Fry's Electronics 75.41 Laptop case for stand-by computer
The Toll Roads of Orance County 7.90 Toll fee - WedEOC training
LighBulbs, Etc 257.95 (12) Light bulbs for facilities
Orchard Supply 58.13 Miscellaneous parts for facilities
Home Depot 13.96 Hardware supplies
YourMembership.com 365.00 Records Management Administrator ad
EasyKey.com 34.75 Key copies
Mobile Industrial Supply 11.85 Welding supplies
Staples 1,618.35 Printer ink for operations
Grainger 174.02 1/2 HP motor for production
Orvac Electronics 23.68 3V lithium batteries
Online Information Services 542.40 Utility exchange reports
Wilton Tools - JPW 56.14 Shop supplies
Placentia Disposal 529.50 (2) Front loads - Richfield Rd
Trench Shoring 450.00 (3)Trenching/Excavation Competent person training
Verizon Wireless 3,293.44 Verizon wireless - 5/21/17 - 6/20/17
Enterprise 55.84 Travel expense - CSDA Governance Foundation Workshop - Dir. Hall
Portola Hotel 214.68 Travel expense - CSDA Governance Foundation Workshop - Dir. Hall
19,015.25
Cal Card Credit Card
U S Bank
ITEM NO. 7.5
AGENDA REPORT
Meeting Date: October 10, 2017 Budgeted:Yes
Total Budget:$230,000
To:Board of Directors Cost Estimate:$227,720.17
Funding Source:All Funds
From:Marc Marcantonio, General
Manager
Account No:1-7020-0690-20
Presented By:Gina Knight, HR/Risk and Safety
Manager
Dept:Human
Resources/Risk
Management
Reviewed by Legal:N/A
Prepared By:Gina Knight, HR/Risk and Safety
Manager
Subject:Renewal of Auto and General Liability Insurance Policy with Association of
California Water Agencies Joint Powers Insurance Authority (ACWA-JPIA)
SUMMARY:
The District received the invoice for both the Auto and General Liability deposit premium for the
2017-2018 policy year.
STAFF RECOMMENDATION:
That the Board of Directors approve payment to ACWA-JPIA in the amount of $227,720.17 for
renewal of the District's auto and general liability insurance policy through October 1, 2018.
DISCUSSION:
Each year the District receives the liability insurance premium invoice from ACWA-JPIA for the
upcoming policy year. The deposit premium is for the period October 1, 2017 through September
30, 2018. This year's premium is $227,720.17, an increase of $18,543 from last year's premium of
$209,177. The premium is based on an estimated payroll and subject to change depending on the
District's Experience Modifier (E-MOD).
The District's Basic premium is $218,606 with an E-MOD of 1.31 equaling a Gross Premium of
$286,374. After applying the Multiple Program Discount Factor of .95, the District's Adjusted
Deposit Premium is $272,055.
ACWA-JPIA calculates the E-Mod using three consecutive years worth of losses. The three-year
period moves each year with the earliest year dropping off and a new year coming on. Therefore, a
particular loss will affect the E-MOD calculation for a total of three years. Losses below $15,000 or
the Retrospective Allocation Point (RAP), are not used in the E-MOD calculation. The RAP is
similar to a Self-Insured Retention (SIR).
The District's RAP is $25,000. The RAP is that portion of the loss for which the District is ultimately
responsible for. It also designates the point at which the District begins to participate in the pooled
losses. When the Retrospective Premium Adjustment (RPA) is calculated (45 months after the first
coverage period), all losses are deducted from the deposit premium. The remaining losses go into
the pool and are shared by all of the members of the program. Each member is charged a
proportionate share of the total losses of the pool according to its deposit premium. Adjustments
continue annually thereafter until all claims in the pool for that specific policy year are closed.
Finally, if the costs are below the deposit premium, a debit is applied against the Retrospective
Premium Adjustment Fund.
The Retrospective Premium Adjustment (RPA) was created in 1999 to stabilize retrospective
premium adjustments and reduce or eliminate billing members for prior policy years by banking
member refunds. The funds are used to offset any amounts due to the member for prior years. The
RPA fund was established with a cap of 50% of the basic premium. Once a member's fund balance
exceeds 50% of its deposit premium, the difference is refunded to the member. This year
$44,334.83 was taken from the District's RPA Stabilization Fund and applied as a credit towards the
Adjusted Deposit Premium of $272,055 to end up with a final invoice for $227,720.17.
The deposit premium is due October 1, 2017 and will be delinquent and subject to penalty and
interest charges if not paid or post marked by October 31, 2017.
The District has the option of increasing the Retrospective Allocation Point (RAP) from $25,000 to
$50,000 or $100,000. Increasing the RAP will not affect the premium. If an agency experiences a
high frequency of losses, the minimum deductible is financially safer.
PRIOR RELEVANT BOARD ACTION(S):
The annual auto and general liability program renewal rates are presented to the Board of Directors
for approval on an annual basis.
ATTACHMENTS:
Name:Description:Type:
2017_Auto_and_General_Liability_Invoice.pdf 2017 Auto and General Liability Invoice Backup Material
Invoince
JJPIA ACWA JPIA
P.O. Box 619082, Roseville, CA 95661
j 800.231.5742 1 www.acwajpia.com
YOUR BEST PROTECTION
AUTO and GENERAL LIABILITY PROGRAM
FOR POLICY YEAR 10/1/2017 - 09/30/2018
RECEIVED
Yorba Linda Water District
0C-j - 2 Z017
Member# Y002 HUMAN RESOURCES
MANAGER
Invoice Date: September 30, 2017
Deposit Premium for the 10/1/2017 -2018 Policy Year $ 272,055.00
Amount taken from your RPA Stabilization Fund (44,334.83)
Amount Due: $ 227,720.17
Pavment is due 30 days from DATE of INVOICE
INVOICE WILL BE DELINQUENT AND
SUBJECT TO PENALTYAND INTEREST CHARGES,
IF NOT PAID OR POSTMARKED BY
OCTOBER 31, 2017
---------------------------------------------------------------------------------
PLEASE MAKE CHECK PAYABLE TO:
ACWA JOINT POWERS INSURANCE AUTHORITY
P.O. Box 619082
Roseville, CA 95661-9082
(800) 231-5742
www.acwaipia.com
ACWA/JOINT POWERS INSURANCE AUTHORITY
LIABILITY PROGRAM
E-MOD/PREMIUM CALCULATION WORK SHEET
AT 9/18/2017
Yorba Linda Water District
10/1/2017-2018 ANNUAL ESTIMATED PAYROLL:$7,034,588
LOSSES FOR PERIOD 10/1/2013 THRU 9/30/2016
RETRO ALLOCATION POINT: $25,000
AMOUNT USED IN
CLAIMS OVER E-MOD CALC
YEAR CLAIM# TOTAL LOSS RAP RAP(or$15,000)* (Capped at$75,000)
10/l/2013-2014 14-0621 $310.00 $25,000 $0.00 $0.00
10/l/2013-2014 14-0620 $450.00 $25,000 $0.00 $0.00
10/l/2013-2014 14-0423 $12,165.82 $25,000 $0.00 $0.00
10/l/2013-2014 15-0276 $1,005.50 $25,000 $0.00 $0.00
10/l/2014-2015 15-0547 $8,303.94 $25,000 $0.00 $0.00
10/1/2014-2015 15-0530 $36,905.84 $25,000 $36,905.84 $36,905.84
10/1/2014-2015 15-0446 $104,785.42 $25,000 $104,785.42 $75,000.00
10/1/2015-2016 16-0315 $29,740.00 $25,000 $29,740.00 $29,740.00
10/1/2015-2016 16-0655 $40,000.00 $25,000 $40,000.00 $40,000.00
10/l/2015-2016 17-0093 $5,103.25 $25,000 $0.00 $0.00
10/1/2015-2016 16-0453 $4,500.00 $25,000 $0.00 $0.00
10/1/2015-2016 16-0621 $17,982.25 $25,000 $17,982.25 $17,982.25
10/l/2015-2016 16-0650 $14,116.00 $25,000 $0.00 $0.00
THREE YEAR LOSS TOTAL $275,368.02 $229,413.51 $199,628.09
EXPERIENCE MODIFICATION FORMULA
STEP
$2.250 + < Payroll x P/RModifier « ( 7 / Log ofPayroll ) ) = Basic Premium
$2.250 + ( $7^034.588 x 0.089273 x ( 7 / 15J66350 ) ) = $218.606
STEP
(
Three Year Loss Total / » ) / Basic Premium = District Rate
< $188^628 / o ) / $218.806 = 03844
STEP
District Rate / Average Rate = Unweighted Modification Factor
O304388 / 0.156761 = 1�841784
STEP
Square root of ( Basic Premium / $2.000.000 ) = Credibility Factor
Square root of ( $218.606 / $2.000.000 ) = 0.3306
STEP
<
Credibility Factor : Unweighted Modification Factor ) + < 1.$ - Credibility Factor ) = E-MOD
( 03306 x 1�9418 ) + ( 1.0 ' 0.3306 ) = 1.3100
DEPOSIT PREMIUM FORMULA .
STEP
Basic Premium » EMDD = Gross Premium
$218.008 « 1.3100 = $288.374
STEP (3Programs=5.0O%)
Gross Premium « Multiple Program Discount Factor = Deposit Premium + Adjustment = Adjusted Deposit Premium
$286.374 x 0.95 = $272.055 + $O = $272^055
THE MINIMUM RAP FOR THE PREMIUM SHOWN ABOVE|S$25.ouQ
YOUR CURRENT RAP 0$2o.000
|FYOU WISH TDSELECT AHIGHER RAP,PLEASE CONTACT MEMBER SERVICES
*AMOUNT DERIVED BY DETERMINING THE LOWER OF THE CHOSEN RAP VS$15,000. IF'TOTALLOSS'COLUMN EXCEEDS
THIS FIGURE THEN THE TOTAL LOSS 0ENTERED HERE.
ITEM NO. 8.1
AGENDA REPORT
Meeting Date: October 10, 2017
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Brett R. Barbre, Asst General
Manager
Reviewed by Legal:Pending
Prepared By:Brett R. Barbre, Asst General
Manager
Subject:Establishing Public Agency Retirement Services (PARS) Public Agencies Post-
Employment Benefits Trust and Adopting Pay Down Schedules for the District's
Other Post Employment Benefits (OPEB) and Public Employees' Retirement
System (PERS) Liabilities
SUMMARY:
At the September 26, 2017 meeting, the Board directed staff to return with an agreement for the
establishment of a Section 115 trust account with an entity that manages an investment trust
designed to prefund pension account liabilities. The Pension Rate Stabilization Program (PRSP),
which has been established by PARS, is the only option available which will allow the District to pre-
fund PERS pension liabilities outside of the CalPERS system. In addition, YLWD can utilize the
same account to pre-fund the District's OPEB liabilities.
STAFF RECOMMENDATION:
That the Board of Directors:
(1) approve Resolution No. 17-32 adopting the Public Agencies Post-Employment Benefits Trust
administered by PARS, subject to review as to form by general counsel;
(2) direct staff to make a payment in the amount of $247,599 in order to open the PARS account
and select the Moderate Risk Investment Strategy;
(3) adopt a 5 year pay down schedule for the District's OPEB liabilities, beginning July 1, 2018, in
the amount of $377,239;
(4) adopt a pay down schedule, in an annual amount and schedule to be determined at the
meeting, to prefund the District's PERS pension liabilities beginning July 1, 2018; and
(5) direct staff to prepare a policy with pay down schedules for the District's OPEB and PERS
pension liabilities for consideration at the October 24, 2017 regular meeting.
DISCUSSION:
In 2012, the Government Accounting Standards Board (GASB) issued Statement No. 68,
Accounting and Financial Reporting for Pensions. GASB 68 requires that governmental employers
that sponsor Defined Benefit plans (i.e., CalPERS) must recognize a net pension liability (unfunded
accrued liability) on their balance sheet. This is the difference between the District’s total pension
liability (actuarial accrued liability) and actual plan assets. GASB 68 became effective for fiscal
years starting after June 15, 2014.
To address the GASB 68 net pension liability, the District’s only prior option was to commit
additional funds to CalPERS (in excess of its annual required contributions) to reduce its unfunded
liability. However, a recent private letter ruling received by PARS from the IRS established that the
District could create a separate trust to "pre-fund" its CalPERS unfunded liability. This would
provide the District with an alternative to sending funds to CalPERS that will allow for greater local
control over assets, investment by a professional fund management team selected and monitored
by the District, with future excess contributions transferred to CalPERS at the District’s discretion.
In an effort to help public agencies address and manage their GASB 68 liability, PARS has
developed the PARS Post-Employment Benefits Trust Program. PARS has assembled leading
professionals to provide the District with the necessary services required under one program to pre-
fund pension and retiree health care liabilities through an IRS reviewed program. The program has
been established as a multiple employer trust so that public agencies regardless of size can join the
program to receive the necessary economies of scale to keep administrative fees low and avoid any
setup costs. The trust permits the District, under federal and state law, to invest in a more
diversified array of investments to maximize investment returns long term and reduce the District’s
liability.
There are three investment strategies agencies may select. A low risk strategy; a moderate risk
strategy; and a high risk strategy. Staff recommends the MODERATE RISK strategy.
OPEB Liability
Staff was directed to work with our actuary to determine the 5 year pay down. The current
numbers, as of June 30, 2017, are below:
Annual estimated payment to cover OPEB costs (no reimbursement from OPEB fund requested)
which is paid out of the Salary & Benefits portion of the budget:
Following year 5, no more pay down costs would be required and all payments for OPEB related
Total OPEB Liability (TOL)$3,595,567
Current Plan Fiduciary Net position (PFN)$1,322,152
Net OPEB Liability (NOL)$2,273,415
Projected Total Costs to the District (FY18 thru FY37)$5,937,500
Projected 5 Year Pay Down Costs $3,095,995
Annual Extra Payment to PARS Account $377,239
Year 1 $210,100
Year 2 $224,700
Year 3 $251,700
Year 4 $254,400
Year 5 $268,900
expenses would be paid from PARS to CERBT. Total savings are estimated to be $2,841,505.
PERS Liability
Staff was directed to bring back amortization schedules for PERS Pension Unfunded Accrued
Liabilities (UAL). Our projected UAL on June 30, 2018, is $8,908,548.
Attached are the following schedules (Attachment - PERS Schedules):
Current (30 year pay down) – the amount in this schedule is our annual payment, for we budget
and pay out of the Salary & Benefits portion of the budget.
20, 15, 10, and 5 year pay down schedules – the amount required to pay down in the number of
years listedIthe additional annual payment would be the difference between the CURRENT and
the corresponding number listed for that particular pay down schedule. Please note the below
numbers are for the first line or first year of the schedule. THESE NUMBERS WILL FLUCTUATE
YEAR TO YEAR.
Please bear in mind these are only estimates and we anticipate more volatility for the PERS
Pension Liability.
The CalPERS assumption rate was 7.50% through the end of FY 2016-17. Moving forward, it will
be reduced in the coming years as follows:
EXAMPLE: June 30, 2018
Current Amount: $436,713 Estimated Savings: $0
20 Year Pay Down: $665,936 Estimated Savings: $1,984,111
$436,713 to CalPERS and $229,223 to PARS
15 Year Pay Down: $810,284 Estimated Savings: $4,807,654
$436,713 to CalPERS and $373,571 to PARS
10 Year Pay Down: $1,105,248 Estimated Savings: $7,207,634
$436,713 to CalPERS and $668,535 to PARS
5 Year Pay Down: $2,002,946 Estimated Savings: $9,244,154
$436,713 to CalPERS and $1,566,233 to PARS
July 1, 2018 7.375%
July 1, 2019 7.25%
July 1, 2020 7.00%
ADMINISTRATIVE ITEMS
In order to start the implementation process with PARS, we will need the following items approved
by the Board of Directors:
Both the resolution and the draft agreement are routine in nature and are in the process of being
reviewed by General Counsel.
1.
Resolution of the Board of Directors approving the opening of a PARS Account (Attachment
- Resolution No. 17-32)
2. Draft Administrative Services Agreement (Attachment – DASA)
ATTACHMENTS:
Name:Description:Type:
PERS_Schedules.pdf PERS Schedules Backup Material
Resolution_17-32.pdf Resolution 17-32 Backup Material
DASA.pdf Draft Agreement with PARS Backup Material
CALPERS ACTUARIAL VALUATION-June 30, 2016
MISCELLANEOUS PLAN OF THE YORBA LINDA WATER DISTRICT
CaiPERS ID: 2682144221
Alternate Schedules
Current Amortization 20 Year Amortization 15 Year Amortization Schedule
Date Balance Payment Balance Payment Balance Payment
6/30/2018 8,908,548 436,713 8,908,548 665,936 8,908,548 810,284
6/30/2019 9,113,024 553,145 8,875,498 685,914 8,725,921 834,593
6/30/2020 9,211,930 625,419 8,819,308 706,492 8,504,637 859,631
6/30/2021 9,243,239 708,001 8,737,652 727,686 8,241,088 885,420
6/30/2022 9,191,284 770,869 8,628,011 749,517 7,931,379 911,982
6/30/2023 9,070,352 793,995 8,487,663 772,003 7,571,305 939,342
6/30/2024 8,916,537 817,815 8,313,665 795,163 7,156,325 967,522
6/30/2025 8,726,696 842,349 8,102,835 819,017 6,681,539 996,548
6/30/2026 8,497,432 867,620 7,851,737 843,588 6,141,661 1,026,444
6/30/2027 8,225,073 893,649 7,556,661 868,896 5,530,988 1,057,237
6/30/2028 7,905,656 920,458 7,213,598 894,963 4,843,368 1,088,955
6/30/2029 7,534,902 948,072 6,818,224 921,811 4,072,171 1,121,623
6/30/2030 7,108,191 976,514 6,365,870 949,466 3,210,246 1,155,272
6/30/2031 6,620,538 1,005,809 5,851,498 977,950 2,249,887 1,189,930
6/30/2032 6,066,564 987,759 5,269,676 1,007,288 1,182,788 1,225,628
6/30/2033 5,490,439 967,719 4,614,543 1,037,507
6/30/2034 4,892,589 926,550 3,879,781 1,068,632
6/30/2035 4,293,309 882,039 3,058,578 1,100,691
6/30/2036 3,695,955 834,023 2,143,591 1,133,712
6/30/2037 3,104,301 516,820 1,126,908 1,167,723
6/30/2038 2,797,704 510,895
6/30/2039 2,474,636 526,222
6/30/2040 2,111,859 542,009
6/30/2041 1,705,968 463,857
6/30/2042 1,351,126 457,374
6/30/2043 976,832 405,240
6/30/2044 628,956 295,390
6/30/2045 369,252 178,585
6/30/2046 211,431 163,955
6/30/2047 57,131 59,200
Totals 19,878,065 17,893,954 15,070,411
Interest Paid 10,969,517 8,985,407 6,161,863
Estimated Savings 1,984,111 4,807,654
* This schedule does not reflect the impact of adopted discount rate changes that will become effective beyond June 30,
2016. For Projected Employer Contributions, please see Page 5.
Rate Plan belonging to the Miscellaneous Risk Pool Page 11
CALPERS ACfUARIAL VALUATION-June 30, 2016
MISCELLANEOUS PLAN OF THE YORBA LINDA WATER DISTRICf
CaiPERS ID: 2682144221
Alternate Ss;hedules
Current Amortization 10 Year Amortization 5 Year Amortization Schedule
Date Balance Payment Balance Payment Balance Payment
6/30/2018 8,908,548 436,713 8,908,549 1,105,248 8,908,549 2,002,946
6/30/2019 9,113,024 553,145 8,420,275 1,138,406 7,490,063 2,063,034
6/30/2020 9,211,930 625,419 7,861,632 1,172,558 5,904,700 2,124,925
6/30/2021 9,243,239 708,001 7,226,401 1,207,735 4,138,284 2,188,673
6/30/2022 9,191,284 770,869 6,507,870 1,243,967 2,175,537 2,254,333
6/30/2023 9,070,352 793,995 5,698,804 1,281,286
6/30/2024 8,916,537 817,815 4,791,398 1,319,724
6/30/2025 8,726,696 842,349 3,777,240 1,359,316
6/30/2026 8,497,432 867,620 2,647,262 1,400,095
6/30/2027 8,225,073 893,649 1,391,692 1,442,098
6/30/2028 7,905,656 920,458
6/30/2029 7,534,902 948,072
6/30/2030 7,108,191 976,514
6/30/2031 6,620,538 1,005,809
6/30/2032 6,066,564 987,759
6/30/2033 5,490,439 967,719
6/30/2034 4,892,589 926,550
6/30/2035 4,293,309 882,039
6/30/2036 3,695,955 834,023
6/30/2037 3,104,301 516,820
6/30/2038 2,797,704 510,895
6/30/2039 2,474,636 526,222
6/30/2040 2,111,859 542,009
6/30/2041 1,705,968 463,857
6/30/2042 1,351,126 457,374
6/30/2043 976,832 405,240
6/30/2044 628,956 295,390
6/30/2045 369,252 178,585
6/30/2046 211,431 163,955
6/30/2047 57,131 59,200
Totals 19,878,065 12,670,433 10,633,912
Interest Paid 10,969,517 3,761,884 1,725,363
Estimated Savings 7,207,634 9,244,154
* This schedule does not reflect the impact of adopted discount rate changes that will become effective beyond June
30, 2016. For Projected Employer Contributions, please see Page 5 of your Annual Valuation Report as of June 30,
2016.
Resolution No. 17-32 Adopting the PARS Public Agencies Post-Employment Benefits Trust 1
RESOLUTION NO. 17-32
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE PUBLIC AGENCIES POST-EMPLOYMENT
BENEFITS TRUST ADMINISTERED BY PUBLIC AGENCY
RETIREMENT SERVICES (PARS)
WHEREAS, PARS has made available the PARS Public Agencies Post-Employment
Benefits Trust (the “Program”) for the purpose of pre-funding pension
obligations and OPEB obligations; and
WHEREAS, the Yorba Linda Water District (“District”) is eligible to participate in the
Program, a tax-exempt trust performing an essential governmental function
within the meaning of Section 115 of the Internal Revenue Code, as
amended, and the Regulations issued there under, and is a tax-exempt trust
under the relevant statutory provisions of the State of California; and
WHEREAS, the District’s adoption and operation of the Program has no effect on any
current or former employee’s entitlement to post-employment benefits; and
WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are
governed by contracts separate from and independent of the Program; and
WHEREAS, the District’s funding of the Program does not, and is not intended to, create
any new vested right to any benefit nor strengthen any existing vested right;
and
WHEREAS, the District reserves the right to make contributions, if any, to the Program.
NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does find,
determine and resolve:
Section 1. The Board of Directors hereby adopts the PARS Public Agencies Post-
Employment Benefits Trust, effective October 10, 2017; and
Resolution No. 17-32 Adopting the PARS Public Agencies Post-Employment Benefits Trust 2
Section 2. The Board of Directors hereby appoints the General Manager, or his
successor or designee as the District’s Plan Administrator for the Program;
and
Section 3. The District’s Plan Administrator is hereby authorized to execute the PARS
legal and administrative documents on behalf of the District and to take
whatever additional actions are necessary to maintain the District’s
participation in the Program and to maintain compliance of any relevant
regulation issued or as may be issued; therefore, authorizing him/her to take
whatever additional actions are required to administer the District’s
Program.
PASSED AND ADOPTED this 10th day of October 2017 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, Ph.D., President
Yorba Linda Water District
ATTEST:
Annie Alexander, Assistant Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Law LLP
Page 1
AGREEMENT FOR ADMINISTRATIVE SERVICES
This agreement (“Agreement”) is made this 10th day of October, 2017, between Phase II
Systems, a corporation organized and existing under the laws of the State of California, doing
business as Public Agency Retirement Services and PARS (hereinafter “PARS”) and the Yorba
Linda Water District (“Agency”).
WHEREAS, the Agency has adopted the PARS Public Agencies Post-Employment Benefits
Trust for the purpose of pre-funding pension obligations and/or OPEB obligations (“Plan”),
and is desirous of retaining PARS as Trust Administrator to the Trust, to provide administrative
services.
NOW THEREFORE, the parties agree:
1. Services. PARS will provide the services pertaining to the Plan as described in the exhibit
attached hereto as “Exhibit 1A” (“Services”) in a timely manner, subject to the further
provisions of this Agreement.
2. Fees for Services. PARS will be compensated for performance of the Services as
described in the exhibit attached hereto as “Exhibit 1B”.
3. Payment Terms. Payment for the Services will be remitted directly from Plan assets
unless the Agency chooses to make payment directly to PARS. In the event that the
Agency chooses to make payment directly to PARS, it shall be the responsibility of the
Agency to remit payment directly to PARS based upon an invoice prepared by PARS and
delivered to the Agency. If payment is not received by PARS within thirty (30) days of
the invoice delivery date, the balance due shall bear interest at the rate of 1.5% per month.
If payment is not received from the Agency within sixty (60) days of the invoice delivery
date, payment plus accrued interest will be remitted directly from Plan assets, unless PARS
has previously received written communication disputing the subject invoice that is signed
by a duly authorized representative of the Agency.
4. Fees for Services Beyond Scope. Fees for services beyond those specified in this
Agreement will be billed to the Agency at the rates indicated in the PARS’ standard fee
schedule in effect at the time the services are provided and shall be payable as described in
Section 3 of this Agreement. Before any such services are performed, PARS will provide
the Agency with a detailed description of the services, terms, and applicable rates for such
services. Such services, terms, and applicable rates shall be agreed upon in writing and
executed by both parties.
5. Information Furnished to PARS. PARS will provide the Services contingent upon the
Agency’s providing PARS the information specified in the exhibit attached hereto as
“Exhibit 1C” (“Data”). It shall be the responsibility of the Agency to certify the accuracy,
content and completeness of the Data so that PARS may rely on such information without
further audit. It shall further be the responsibility of the Agency to deliver the Data to
PARS in such a manner that allows for a reasonable amount of time for the Services to be
performed. Unless specified in Exhibit 1A, PARS shall be under no duty to question Data
received from the Agency, to compute contributions made to the Plan, to determine or
Page 2
inquire whether contributions are adequate to meet and discharge liabilities under the Plan,
or to determine or inquire whether contributions made to the Plan are in compliance with
the Plan or applicable law. In addition, PARS shall not be liable for non performance of
Services to the extent such non performance is caused by or results from erroneous and/or
late delivery of Data from the Agency. In the event that the Agency fails to provide Data
in a complete, accurate and timely manner and pursuant to the specifications in Exhibit 1C,
PARS reserves the right, notwithstanding the further provisions of this Agreement, to
terminate this Agreement upon no less than ninety (90) days written notice to the Agency.
6. Records. Throughout the duration of this Agreement, and for a period of five (5) years
after termination of this Agreement, PARS shall provide duly authorized representatives
of Agency access to all records and material relating to calculation of PARS’ fees under
this Agreement. Such access shall include the right to inspect, audit and reproduce such
records and material and to verify reports furnished in compliance with the provisions of
this Agreement. All information so obtained shall be accorded confidential treatment as
provided under applicable law.
7. Confidentiality. Without the Agency’s consent, PARS shall not disclose any information
relating to the Plan except to duly authorized officials of the Agency, subject to applicable
law, and to parties retained by PARS to perform specific services within this Agreement.
The Agency shall not disclose any information relating to the Plan to individuals not
employed by the Agency without the prior written consent of PARS, except as such
disclosures may be required by applicable law.
8. Independent Contractor. PARS is and at all times hereunder shall be an independent
contractor. As such, neither the Agency nor any of its officers, employees or agents shall
have the power to control the conduct of PARS, its officers, employees or agents, except
as specifically set forth and provided for herein. PARS shall pay all wages, salaries and
other amounts due its employees in connection with this Agreement and shall be
responsible for all reports and obligations respecting them, such as social security, income
tax withholding, unemployment compensation, workers’ compensation and similar
matters.
9. Indemnification. PARS and Agency hereby indemnify each other and hold the other
harmless, including their respective officers, directors, employees, agents and attorneys,
from any claim, loss, demand, liability, or expense, including reasonable attorneys’ fees
and costs, incurred by the other as a consequence of, to the extent, PARS’ or Agency’s, as
the case may be, negligent acts, errors or omissions with respect to the performance of their
respective duties hereunder.
10. Compliance with Applicable Law. The Agency shall observe and comply with federal,
state and local laws in effect when this Agreement is executed, or which may come into
effect during the term of this Agreement, regarding the administration of the Plan. PARS
shall observe and comply with federal, state and local laws in effect when this Agreement
is executed, or which may come into effect during the term of this Agreement, regarding
Plan administrative services provided under this Agreement.
Page 3
11. Applicable Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California. In the event any party institutes legal proceedings to
enforce or interpret this Agreement, venue and jurisdiction shall be in any state court of
competent jurisdiction.
12. Force Majeure. When a party’s nonperformance hereunder was beyond the control and
not due to the fault of the party not performing, a party shall be excused from performing
its obligations under this Agreement during the time and to the extent that it is prevented
from performing by such cause, including but not limited to: any incidence of fire, flood,
acts of God, acts of terrorism or war, commandeering of material, products, plants or
facilities by the federal, state or local government, or a material act or omission by the other
party.
13. Ownership of Reports and Documents. The originals of all letters, documents, reports,
and data produced for the purposes of this Agreement shall be delivered to, and become
the property of the Agency. Copies may be made for PARS but shall not be furnished to
others without written authorization from Agency.
14. Designees. The Plan Administrator of the Agency, or their designee, shall have the
authority to act for and exercise any of the rights of the Agency as set forth in this
Agreement, subsequent to and in accordance with the written authority granted by the
Governing Body of the Agency, a copy of which writing shall be delivered to PARS. Any
officer of PARS, or his or her designees, shall have the authority to act for and exercise
any of the rights of PARS as set forth in this Agreement.
15. Notices. All notices hereunder and communications regarding the interpretation of the
terms of this Agreement, or changes thereto, shall be effected by delivery of the notices in
person or by depositing the notices in the U.S. mail, registered or certified mail, return
receipt requested, postage prepaid and addressed as follows:
(A) To PARS: PARS; 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660;
Attention: President
(B) To Agency: Yorba Linda Water District; 1717 East Miraloma Avenue, Placentia, CA
92870; Attention: General Manager
Notices shall be deemed given on the date received by the addressee.
16. Term of Agreement. This Agreement shall remain in effect for the period beginning
October 10, 2017 and ending October 9, 2020 (“Term”). This Agreement may be
terminated at any time by giving thirty (30) days written notice to the other party of the
intent to terminate. Absent a thirty (30) day written notice to the other party of the intent
to terminate, this Agreement will continue unchanged for successive twelve month periods
following the Term.
17. Amendment. This Agreement may not be amended orally, but only by a written
instrument executed by the parties hereto.
18. Entire Agreement. This Agreement, including exhibits, contains the entire understanding
of the parties with respect to the subject matter set forth in this Agreement. In the event a
Page 4
conflict arises between the parties with respect to any term, condition or provision of this
Agreement, the remaining terms, conditions and provisions shall remain in full force and
legal effect. No waiver of any term or condition of this Agreement by any party shall be
construed by the other as a continuing waiver of such term or condition.
19. Attorneys Fees. In the event any action is taken by a party hereto to enforce the terms of
this Agreement the prevailing party herein shall be entitled to receive its reasonable
attorney’s fees.
20. Counterparts. This Agreement may be executed in any number of counterparts, and in
that event, each counterpart shall be deemed a complete original and be enforceable
without reference to any other counterpart.
21. Headings. Headings in this Agreement are for convenience only and shall not be used to
interpret or construe its provisions.
22. Effective Date. This Agreement shall be effective on the date first above written, and also
shall be the date the Agreement is executed.
AGENCY:
BY:
Marc Marcantonio
TITLE: General Manager
DATE:
PARS:
BY:
Tod Hammeras
TITLE: Chief Financial Officer
DATE:
Page 5
EXHIBIT 1A
SERVICES
PARS will provide the following services for the Yorba Linda Water District Public Agencies
Post-Employment Benefits Trust:
1. Plan Installation Services:
(A) Meeting with appropriate Agency personnel to discuss plan provisions,
implementation timelines, actuarial valuation process, funding strategies, benefit
communication strategies, data reporting, and submission requirements for
contributions/reimbursements/distributions;
(B) Providing the necessary analysis and advisory services to finalize these elements of
the Plan;
(C) Providing the documentation needed to establish the Plan to be reviewed and approved
by Agency legal counsel. Resulting final Plan documentation must be approved by the
Agency prior to the commencement of PARS Plan Administration Services outlined in
Exhibit 1A, paragraph 2 below.
2. Plan Administration Services:
(A) Monitoring the receipt of Plan contributions made by the Agency to the trustee of the
PARS Public Agencies Post-Employment Benefits Trust (“Trustee”), based upon
information received from the Agency and the Trustee;
(B) Performing periodic accounting of Plan assets, reimbursements/distributions, and
investment activity, based upon information received from the Agency and/or Trustee;
(C) Coordinating the processing of distribution payments pursuant to authorized direction
by the Agency, and the provisions of the Plan, and, to the extent possible, based upon
Agency-provided Data;
(D) Coordinating actions with the Trustee as directed by the Plan Administrator within the
scope this Agreement;
(E) Preparing and submitting a monthly report of Plan activity to the Agency, unless
directed by the Agency otherwise;
(F) Preparing and submitting an annual report of Plan activity to the Agency;
(G) Facilitating actuarial valuation updates and funding modifications for compliance with
GASB 45/75, if prefunding OPEB obligations;
(H) Coordinating periodic audits of the Trust;
(I) Monitoring Plan and Trust compliance with federal and state laws.
3. PARS is not licensed to provide and does not offer tax, accounting, legal, investment or
actuarial advice.
Page 6
EXHIBIT 1B
FEES FOR SERVICES
PARS will be compensated for performance of Services, as described in Exhibit 1A based
upon the following schedule:
An annual asset fee shall be paid from Plan Assets based on the following schedule:
For Plan Assets from: Annual Rate:
$0 to $10,000,000 0.25%
$10,000,001 to $15,000,000 0.20%
$15,000,001 to $50,000,000 0.15%
$50,000,001 and above 0.10%
Annual rates are prorated and paid monthly. The annual asset fee shall be calculated by
the following formula [Annual Rate divided by 12 (months of the year) multiplied by the
Plan asset balance at the end of the month]. Trustee and Investment Management Fees
are not included.
Page 7
EXHIBIT 1C
DATA REQUIREMENTS
PARS will provide the Services under this Agreement contingent upon receiving the following
information:
1. Executed Legal Documents:
(A) Certified Resolution
(B) Adoption Agreement to the Public Agencies Post-Employment Benefits Trust
(C) Trustee Investment Forms
2. Contribution – completed Contribution Transmittal Form signed by the Plan
Administrator (or authorized Designee) which contains the following information:
(A) Agency name
(B) Contribution amount
(C) Contribution date
(D) Contribution method (Check, ACH, Wire)
3. Distribution – completed Payment Reimbursement/Distribution Form signed by the
Plan Administrator (or authorized Designee) which contains the following information:
(A) Agency name
(B) Payment reimbursement/distribution amount
(C) Applicable statement date
(D) Copy of applicable premium, claim, statement, warrant, and/or administrative
expense evidencing payment
(E) Signed certification of reimbursement/distribution from the Plan Administrator
(or authorized Designee)
4. Other information pertinent to the Services as reasonably requested by PARS and
Actuarial Provider.
ITEM NO. 8.2
AGENDA REPORT
Meeting Date: October 10, 2017 Budgeted:Yes
Total Budget:$2,500,000
To:Board of Directors Cost Estimate:$676,629.90
Funding Source:All Water Funds
From:Marc Marcantonio, General
Manager
Job No:J2009-22 #22
Presented By:Steve Conklin, Engineering
Manager
Dept:Engineering
Reviewed by Legal:N/A
Prepared By:Bryan Hong, Water Quality
Engineer
CEQA Compliance:MND
Subject:Construction Contract for the Drilling of Well 22
SUMMARY:
On September 20, 2017, bids were received from five contractors for the Drilling of Well 22.
Following review of the bids, staff recommends award to the low-bidder, Bakersfield Well & Pump
Company for $676,629.90.
STAFF RECOMMENDATION:
That the Board of Directors award the Construction Contract for the Drilling of Well 22 to Bakersfield
Well & Pump Company for $676,629.90, Job No. J2009-22 #22.
DISCUSSION:
As part of the District's Capital Improvement Plan, project specifications were completed for the
Drilling of Well 22 to be located on OCWD property at the south end of Fee Ana Street. A lease
agreement was negotiated and executed with OCWD to construct and operate Well 22 on the north
side of OCWD's Huckleberry Basin.
On August 23, 2017, the District solicited bids for the Drilling of Well 22. On September 20, 2017,
sealed bids were received from five contractors, in a highly competitive bidding climate. The design
consultant provided an Engineer's Estimate of $900,000. The five bids ranged from a low of
$676,629.90 to a high of $997,000.00, as shown in the summary below.
No. Contractor Total Bid Amount
1 Bakersfield Well & Pump Company $676,629.90
2 Weber Water Resources CA, LLC $787,079.00
3 South West Pump & Drilling, Inc. $788,030.00
The bid tabulation and bid documents from the low-bidder, Bakersfield Well & Pump
Company, were reviewed and confirmed by District staff and found to be responsive and fully in
order. Accordingly, staff recommends award to Bakersfield Well & Pump Company.
4 Best Drilling & Pump, Inc. $797,880.00
5 Jensen Drilling Company $997,000.00
PRIOR RELEVANT BOARD ACTION(S):
On December 22, 2016, the Board of Directors authorized execution of a Professional Services
Agreement with CDM Smith, Inc. to provide Hydrogeologic and CEQA Services for Well 22
Drilling and Construction Support in the amount of $219,135.
On September 22, 2016, the Board of Directors authorized execution of a Lease Agreement
between Orange County Water District and Yorba Linda Water District for the Well 22 site.
ITEM NO. 8.3
AGENDA REPORT
Meeting Date: October 10, 2017 Budgeted:N/A
To:Board of Directors Cost Estimate:$900,000
Funding Source:Water Capital
Reserves
From:Marc Marcantonio, General
Manager
Presented By:Steve Conklin, Engineering
Manager
Dept:Engineering
Reviewed by Legal:No
Prepared By:Danielle Logsdon, Associate
Engineer
CEQA Compliance:N/A
Subject:Waterline Replacement for Tract 15199 at the Northwest Corner of La Palma
Ave and Camino de Bryant
SUMMARY:
Staff recommends replacement of approximately 2,300 feet of waterline within Tract 15199 because
of multiple recent emergency repairs, as shown on the attached exhibit.
STAFF RECOMMENDATION:
That the Board of Directors authorize staff to proceed with replacement of approximately 2,300 feet
of waterline within Tract 15199 for an estimated cost of $900,000.
DISCUSSION:
Staff is preparing the 2018 Waterline Replacement Project, Job No. 2017-24 for a tract that includes
Pomegranate Road, Rancho Santa Ana Road, Susanna Bryant Drive, John Bixby Lane, and Ernest
Johnson Circle. There have been six main breaks since 2010 that have resulted in emergency
repairs. The waterlines in these streets are breaking at an alarming rate and staff anticipates
additional emergency repairs in the near future. Below is a history of recent main breaks.
2010 Ernest Johnson Circle (two leaks)
5/2/2016 John Bixby Lane
9/15/2016 Rancho Santa Ana Road
1/19/2017 Susanna Bryant Drive
9/26/2017 Rancho Santa Ana Road
The construction of the waterline replacement was budgeted for the 2018-2019 fiscal year.
However, while Staff was coordinating with the City, the City informed Staff that those streets are
scheduled to be repaved this year and there will be a one year moratorium on all construction within
the streets. The City is willing to delay repaving the streets to allow for the waterline replacement
and is contacting the contractor to inquire about a credit or a cost to delay that portion of paving.
The City has asked that the District conduct community outreach to the residents to inform them
about the paving delay and waterline replacement.
Staff recommends moving up the construction to this fiscal year to save on the cost of repaving the
streets and to minimize the inconvenience for those residents. Staff's opinion of probable
construction costs is $900,000.
ATTACHMENTS:
Name:Description:Type:
Waterline_Replacement_TR_15199.pdf TR 15199 Leak History Backup Material
Presentation_-_Waterline_Replacement.pdf Presentation Backup Material
200 ftYLWD GIS WATER MAPPING APPLICATION:PDF Map Printing SystemDISCLAIMER: This map represents a visual aid intended to assist Public Utility Department personnel with themanagement of Water System Facility. Data provided hereon is not a guarantee of actual field conditions nor asubstitute for record drawings and field verification.Monday, October 2, 2017 02:31:11 PM
Presented By: Steve Conklin, P.E .
Engineering Manager
Waterline Replacement
for Tract 15199
Board of Directors October 10, 2017
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Project Summary
•Installed 1996
•Replace 2,300 feet of 8” Ductile Iron P ipe with new
8” C-900 PVC Pipe
•49 Connections
•New Valves
•Replace Dry Barrel Fire Hydrants
Waterline Leak in Tract 15199
Waterline Leak in Tract 15199
Waterline Leak in Tract 15199
Waterline Leak in Tract 15199
Waterline Leak in Tract 15199
Waterline Leak in Tract 15199
Example C-900 PVC Pipe
Installation
Example C-900 PVC Pipe
Installation
Questions?
Thank You
ITEM NO. 9.1
AGENDA REPORT
Meeting Date: October 10, 2017
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Kelly McCann, Senior
Accountant
Subject:Budget to Actual Reports for the Month Ending August 31, 2017
DISCUSSION:
For the month ending August 31, 2017, staff is presenting Budget to Actual reports for the District as
a whole, as well as the individual water and sewer funds.
Cumulative Volumetric Water Revenue, as reported through the month ending August 31, 2017,
reflects an average rebound of 23.8% as compared to the prior year for the same reporting period.
Residential classified customer connections have experienced the largest rebound in monthly
consumption as conservation restrictions were lifted compared to the prior year.
Total Variable Costs results reflect at 1.4% increase when compared to prior year for the same
reporting period. The increase in costs is reflective of the increase in water demand which is 3.8%
ahead of budget while taking into consideration In-Lieu water purchases.
Supplies & Services within the Water Department have decreased by 18.4%, due greatly to the
District not incurring election costs compared to the prior year for the same reporting period.
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:Description:Type:
Pro_Forma_Aug_31_2017.pdf Backup Material Backup Material
Consolidated_Budget_to_Actual_Statement_August_2017.pdf Backup Material Backup Material
Water_Budget_to_Actual_Statement_August_2017.pdf Backup Material Backup Material
Sewer_Budget_to_Actual_Statement_August_2017.pdf Backup Material Backup Material
FY18 Budget YTD Actuals thru
August 2017
Water Revenue (Residential)14,278,688$ 3,297,267$
Water Revenue (Commercial & Fire Det.)2,071,031$ 392,268$
Water Revenue (Landscape/Irrigation)3,079,054$ 907,022$
Service Charges 10,106,238$ 1,666,730$
Other Operating Revenue 769,106$ 141,069$
Total Operating Revenue 30,304,117$ 6,404,356$
Revenue (Non-Operating):
Interest 275,000$ 36,506$
Property Taxes 1,710,000$ 2,643$
Other Non-Operating Revenue 604,646$ 145,198$
Total Non-Operating Revenue 2,589,646$ 184,347$
Total Revenue 32,893,763$ 6,588,703$
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
Water-Related Costs 11,240,088$ 2,609,211$
Fixed Costs 1,443,355$ 392,483$
Power-Related Costs 1,285,413$ 210,723$
Variable Water Costs Related Expenses Total 13,968,855$ 3,212,417$
Salary Related Expenses 8,859,867$ 1,379,793$
Salary Related Expenses - Limited-term Staff -$ -$
Reduction for Capital Project Labor (215,000)$ -$
Salary Related Expenses Total 8,644,867$ 1,379,793$
Supplies & Services
Communications 189,565$ 16,354$
Contractual Services 519,653$ 54,577$
Data Processing 235,322$ 24,454$
Dues & Memberships 80,492$ 25,870$
Fees & Permits 264,641$ 17,947$
Board Election -$ -$
Insurance 263,506$ 40,347$
Materials 797,347$ 132,288$
District Activities, Emp Recognition 22,506$ 1,338$
Maintenance 339,342$ 56,656$
Non-Capital Equipment 104,678$ 10,943$
Office Expense 39,662$ 4,706$
Professional Services 650,108$ 73,712$
Training 61,728$ 4,254$
Travel & Conferences 102,493$ 5,222$
Uncollectible Accounts 17,205$ 99$
Utilities 158,100$ 44,244$
Vehicle Expenses 286,812$ 41,801$
Supplies & Services Sub-Total 4,133,160$ 554,811$
Total Operating Expenses 26,746,883$ 5,147,020$
Expenses (Non-Operating)
Other Expense 15,220$ 5,524$
Total Non-Operating Expenses 15,220$ 5,524$
Total Expenses 26,762,103$ 5,152,544$
Net Revenues 6,131,660$ 1,436,159$
Less: Debt Service (Principal & Interest)2,729,799$ -$
Less: Committed Capital Expenditures (PayGo)2,635,755$ 360,581$
Less: Special Item - Conservation Credit -$ 1,105,809$
Transfer to/(from) Reserves 766,107$ (30,231)$
Net -$ -$
Yorba Linda Water District
Water Enterprise
FY17 ProForma - Use of Funds
August 2017
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For Period Ending August 31, 2017
Annual YTD Aug YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual
Budget Budget Actual Actual (Under) Over Aug. Actual Actual (thru vs vs
FY 2018 FY 2018 FY 2018 FY 2018 YTD Budget FY 2017 Aug. 2016)PY Actual $PY Actual %
Revenue (Operating):
Water Revenue (Residential)$14,278,688 $3,181,292 $1,851,833 $3,297,267 115,975 $1,388,443 $2,602,967 $694,300 26.67%
Water Revenue (Commercial & Fire Det.)2,071,031 461,426 220,839 392,268 (69,158)166,400 323,322 68,946 21.32%
Water Revenue (Landscape/Irrigation)3,079,054 686,013 509,217 907,022 221,009 393,282 734,546 172,476 23.48%
Water Revenue (Service Charge)10,106,238 1,684,373 834,470 1,666,730 (17,643)826,175 1,824,613 (157,883)-8.65%
Sewer Charge Revenue 2,032,245 338,708 176,247 335,300 (3,408)156,896 291,676 43,624 14.96%
Locke Ranch Assessments 223,000 - 85 85 85 74 74 11 0.00%
Other Operating Revenue 866,161 144,360 77,080 156,963 12,603 87,281 181,575 (24,612)-13.55%
Total Operating Revenue:32,656,417 6,496,171 3,669,771 6,755,635 259,464 3,018,551 5,958,773 796,862 13.37%
Revenue (Non-Operating):
Interest 310,000 51,667 31,942 39,044 (12,623)22,630 30,289 8,755 28.90%
Property Tax 1,710,000 5,814 2,643 2,643 (3,171) 2,528 2,528 115 0.00%
Other Non-Operating Revenue 624,521 141,587 89,948 150,567 8,980 14,980 41,387 109,180 263.80%
Total Non-Operating Revenue:2,644,521 199,068 124,533 192,254 (6,813)40,138 74,204 118,050 159.09%
Total Revenue 35,300,938 6,695,239 3,794,304 6,947,889 252,650 3,058,689 6,032,977 914,912 15.17%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)13,968,855 3,095,625 1,505,340 2,965,453 (130,172)1,365,473 2,924,291 41,162 1.41%
Salary Related Expenses 9,643,124 1,399,943 703,021 1,254,114 (145,829)645,201 1,632,503 (378,389)-23.18%
Supplies & Services 4,621,895 734,901 330,530 634,700 (100,202)372,789 733,774 (99,075) -13.50%
Total Operating Expenses 28,233,874 5,230,470 2,538,891 4,854,267 (376,203)2,383,463 5,290,568 (436,302)-8.25%
Expenses (Non-Operating):
Interest on Long Term Debt 1,489,796 226,423 109,911 222,361 (4,062) 133,981 267,961 (45,600) -17.02%
Other Expense 15,220 2,537 5,301 5,524 2,987 (17,706)(26,389)31,913 120.93%
Total Non-Operating Expenses:1,505,016 228,960 115,212 227,885 (1,075) 116,275 241,572 (13,687) -5.67%
Total Expenses 29,738,890 5,459,430 2,654,103 5,082,152 (377,278)2,499,738 5,532,140 (449,988)-8.13%
Net Position Before Capital Contributions 5,562,048 1,235,809 1,140,201 1,865,737 629,928 558,951 500,837 1,364,900 272.52%
Special Item - - 1,105,809 1,105,809 - - 1,105,809 0.00%
Capital Contributions (Non-Cash Transaction -- - - - - 638 638 (638) 0.00%
GASB 34 Compliant)
Net Position Before Depreciation 5,562,048 1,235,809 1,140,201 759,928 (475,881)559,589 501,475 258,453 51.54%
Depreciation & Amortization 7,182,000 1,197,000 601,956 1,203,912 6,912 592,413 1,184,826 19,086 1.61%
Total Net Position ($1,619,952)$38,809 $538,245 ($443,984)($482,793)($32,824)($683,351)$239,367 -35.03%
(20,990)(35,904) (35,904) (18,408) (40,194) 4,290 -10.67%
(With August 31, 2016 for comparison purposes)
Annual YTD Aug YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR
Budget Budget Actual Actual (Under)Over Aug. Actual Actual (thru vs vs
FY 2018 FY 2018 FY 2018 FY 2018 YTD Budget FY 2017 Aug. 2016) PY Actual $PY Actual %
Revenue (Operating):
Water Revenue (Residential)$14,278,688 $3,181,292 $1,851,833 $3,297,267 115,975 $1,388,443 $2,602,967 $694,300 26.67%
Water Revenue (Commercial & Fire Det.)2,071,031 461,426 220,839 392,268 (69,158)166,400 323,322 68,946 21.32%
Water Revenue (Landscape/Irrigation)3,079,054 686,013 509,217 907,022 221,009 393,282 734,546 172,476 23.48%
Water Revenue (Service Charge)10,106,238 1,684,373 834,470 1,666,730 (17,643)826,175 1,824,613 (157,883) -8.65%
Other Operating Revenue 769,106 128,184 71,576 141,069 12,884 79,325 161,723 (20,654) -12.77%
Total Operating Revenue:30,304,117 6,141,288 3,487,935 6,404,356 263,068 2,853,625 5,647,171 757,185 13.41%
Revenue (Non-Operating):
Interest 275,000 45,833 29,408 36,506 (9,327)20,881 28,537 7,969 27.93%
Property Tax 1,710,000 5,814 2,643 2,643 (3,171) 2,528 2,528 115 0.00%
Other Non-Operating Revenue 604,646 138,274 86,733 145,198 6,924 12,359 40,797 104,401 255.90%
Total Non-Operating Revenue:2,589,646 189,922 118,784 184,347 (5,575)35,768 71,862 112,485 156.53%
Total Revenue 32,893,763 6,331,210 3,606,719 6,588,703 257,493 2,889,393 5,719,033 869,670 15.21%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)13,968,855 3,095,625 1,505,340 2,965,453 (130,172)1,365,473 2,924,291 41,162 1.41%
Salary Related Expenses 8,644,867 1,252,218 624,623 1,113,282 (138,936)569,852 1,462,316 (349,034) -23.87%
Supplies & Services:
Communications 189,565 31,594 9,764 16,354 (15,240)19,600 30,237 (13,883) -45.91%
Contractual Services 519,653 66,609 30,703 54,577 (12,032)37,107 72,018 (17,441) -24.22%
Data Processing 235,322 39,220 9,788 24,454 (14,767)(1,436) 20,203 4,251 21.04%
Dues & Memberships 80,492 26,000 544 25,870 (130)4,531 28,595 (2,725) -9.53%
Fees & Permits 264,641 23,607 13,703 17,947 (5,660)14,278 15,484 2,463 15.91%
Board Election - - - - - - 72,539 (72,539) -100.00%
Insurance 263,506 43,918 19,754 40,347 (3,571)24,841 45,758 (5,411) -11.83%
Materials 797,347 132,891 66,124 132,288 (604)66,577 126,315 5,973 4.73%
District Activities, Emp Recognition 22,506 3,751 828 1,338 (2,413)1,026 1,472 (134) -9.10%
Maintenance 339,342 56,557 5,783 56,656 99 29,876 33,340 23,316 69.93%
Non-Capital Equipment 104,678 17,446 7,465 10,943 (6,503)8,865 11,913 (970) -8.14%
Office Expense 39,662 6,610 3,287 4,706 (1,904)1,693 1,826 2,880 157.72%
Professional Services 650,108 83,351 56,599 73,712 (9,639)69,389 104,109 (30,397) -29.20%
Training 61,728 10,288 2,855 4,254 (6,034)1,598 6,204 (1,950) -31.44%
Travel & Conferences 102,493 17,082 3,457 5,222 (11,860)4,695 8,411 (3,189) -37.91%
Uncollectible Accounts 17,205 2,868 216 99 (2,769)4,896 3,781 (3,682) -97.38%
Utilities 158,100 43,850 23,056 44,244 394 12,174 26,180 18,064 69.00%
Vehicle Equipment 286,812 47,802 25,524 41,801 (6,001)43,626 72,259 (30,458) -42.15%
Supplies & Services Sub-Total 4,133,160 653,445 279,450 554,811 (98,634)343,335 680,644 (125,833) -18.49%
Total Operating Expenses 26,746,883 5,001,288 2,409,413 4,633,546 (367,743)2,278,660 5,067,251 (433,705) -8.56%
Expenses (Non-Operating):
Interest on Long Term Debt 1,489,796 226,423 109,911 222,361 (4,062)133,981 267,961 (45,600) -17.02%
Other Expense 15,220 2,537 5,301 5,524 2,988 (17,706) (26,389) 31,913 120.93%
Total Non-Operating Expenses:1,505,016 228,960 115,212 227,886 (1,074) 116,275 241,572 (13,686) -5.67%
Total Expenses 28,251,899 5,230,249 2,524,625 4,861,431 (368,817)2,394,935 5,308,823 (447,392) -8.43%
Net Position Before Capital Contributions 4,641,864 1,100,961 1,082,094 1,727,271 626,310 494,458 410,210 1,317,061 321.07%
Special Item - - 1,105,809 1,105,809 - - 1,105,809 0.00%
Capital Contributions (Non-Cash Transaction -- - - - - - - - 0.00%
GASB 34 Compliant)
Net Position Before Depreciation 4,641,864 1,100,961 1,082,094 621,462 (479,499)494,458 410,210 211,252 51.50%
Depreciation & Amortization 5,832,000 972,000 488,820 977,640 5,640 481,649 963,298 14,342 1.49%
Total Net Position (1,190,136) 128,961 593,274 (356,178) (485,139) 12,809 (553,088) 196,910 -35.60%
Capital - Direct Labor (18,469) (32,626)(32,626) (16,764) (37,808) 5,182 -13.71%
(With August 31, 2016 for comparison purposes)
Yorba Linda Water District
Water Fund
For Period Ending August 31, 2017
Annual YTD Aug YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR
Budget Budget Actual Actual (Under)Over Aug. Actual Actual (thru vs vs
FY 2018 FY 2018 FY 2018 FY 2018 YTD Budget FY 2017 Aug. 2016)PY Actual $PY Actual %
Revenue (Operating):
Sewer Charge Revenue $2,032,245 $338,708 $176,247 $335,300 ($3,408)$156,896 $291,676 $43,624 14.96%
Locke Ranch Assessments 223,000 - 85 85 85 74 74 11 0.00%
Other Operating Revenue 97,055 16,176 5,504 15,894 (282)7,956 19,852 (3,958) -19.94%
Total Operating Revenue:2,352,300 354,883 181,836 351,279 (3,604)164,926 311,602 39,677 12.73%
Revenue (Non-Operating):
Interest 35,000 5,833 2,535 2,539 (3,294)1,749 1,753 786 44.84%
Other Non-Operating Revenue 19,875 3,312 3,215 5,368 2,056 2,621 591 4,777 808.36%
Total Non-Operating Revenue:54,875 9,146 5,750 7,907 (1,238)4,370 2,344 5,563 237.35%
Total Revenue 2,407,174 364,029 187,586 359,186 (4,843)169,296 313,946 45,240 14.41%
Expenses (Operating):
Salary Related Expenses 998,257 147,725 78,398 140,832 (6,893)75,349 170,188 (29,356)-17.25%
Supplies & Services:
Communications 12,010 2,002 577 1,073 (929)1,475 2,269 (1,196)-52.71%
Contractual Services 28,237 4,706 2,311 4,108 (598)2,780 5,408 (1,300)-24.04%
Data Processing 15,078 2,513 737 1,841 (672)(108) 1,521 320 21.04%
Dues & Memberships 6,053 1,009 41 1,947 938 341 2,152 (205)-9.53%
Fees & Permits 17,474 2,912 883 1,080 (1,832)935 1,014 66 6.51%
Board Election - - - - - - 5,460 (5,460)-100.00%
Insurance 19,834 3,306 1,487 3,037 (269)1,870 3,444 (407)-11.82%
Materials 51,653 8,609 1,731 12,491 3,882 5,728 6,377 6,114 95.88%
District Activities, Emp Recognition 1,694 282 62 100 (182)77 111 (11)-9.91%
Maintenance 170,559 28,427 14,135 14,803 (13,624)5,004 5,669 9,134 161.12%
Non-Capital Equipment 20,147 3,358 4,338 5,959 2,601 1,250 1,541 4,418 286.70%
Office Expense 2,963 494 247 354 (140)127 137 217 158.39%
Professional Services 40,417 6,736 3,985 4,957 (1,779)2,014 4,251 706 16.61%
Training 6,782 1,130 204 291 (839)118 973 (682)-70.09%
Travel & Conferences 12,752 2,125 213 771 (1,354)311 591 180 30.46%
Uncollectible Accounts 1,295 216 57 32 (184)863 724 (692)-95.58%
Utilities 12,600 2,100 1,791 3,446 1,346 974 2,086 1,360 65.20%
Vehicle Equipment 69,188 11,531 18,282 23,598 12,067 5,696 9,403 14,195 150.96%
Supplies & Services Sub-Total 488,735 81,456 51,081 79,888 (1,568) 29,455 53,131 26,757 50.36%
Total Operating Expenses 1,486,991 229,181 129,479 220,720 (8,461) 104,804 223,319 (2,599) -1.16%
Expenses (Non-Operating):
Interest Expense - - - - - - - - -
Other Expense - - - - - - - - -
Total Non-Operating Expenses:- - - - - - - - 0.00%
Total Expenses 1,486,991 229,181 129,479 220,720 (8,461) 104,804 223,319 (2,599) -1.16%
Net Position Before Capital Contributions 920,183 134,848 58,107 138,466 3,618 64,492 90,627 47,839 52.79%
Capital Contributions (Non-Cash Transaction -- - - - - 638 638 (638) 0.00%
GASB 34 Compliant)
Net Position Before Depreciation 920,183 134,848 58,107 138,466 3,618 65,130 91,265 47,201 51.72%
Depreciation & Amortization 1,350,000 225,000 113,136 226,272 1,272 110,764 221,528 4,744 2.14%
Total Net Position (429,817) (90,152) (55,029) (87,806) 2,346 (45,634) (130,263) 42,457 -32.59%
Capital - Direct Labor (2,521) (3,278)(3,278) (1,644) (2,386) (892)37.38%
Yorba Linda Water District
Sewer Fund
For Period Ending August 31, 2017
(With August 31, 2016 for comparison purposes)
ITEM NO. 9.2
AGENDA REPORT
Meeting Date: October 10, 2017
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Kelly McCann, Senior
Accountant
Subject:Cash and Investment Report for Period Ending August 31, 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 Summary Report 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 August 31, 2017 is 1.22%.
The overall increase in the investment balance from the previous month is approximately $126,000.
A large portion was due to the Water Operating Fund increasing by $373,759 and the Sewer
Operating Fund increasing by $125,340 due to a positive net effect between operating revenues
and expenses through the reporting month of the fiscal year. The restricted 2017A Acquisition Fund
decreased by $138,154 due to the payment capital expenses for the construction of the Fairmont
Booster Pump Station. In addition, the Water Capital Project Reserve decreased by $237,181, due
to its Pay-As-You-Go status for payments related to capital improvements.
STRATEGIC PLAN:
FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a
Timely and Transparent Manner to the Board of Directors and Member Agencies
ATTACHMENTS:
Name:Description:Type:
Invst_Rpt_8-17.pdf Cash and Investment Portfolio Report Backup Material
Invst_Agenda_Backup_-_August_2017.pdf Cash and Investment Summary Report Backup Material
Fair_Value_Measurement_Report_8-17.pdf Fair Value Measurement Report Backup Material
Market %Date of Percent
Value Par of Total Institution Maturity Yield
Checking Account:
300,397$ 300,397$ Wells Fargo Bank
19,526 19,526 Pershing
319,923$ 319,923$ 0.83%Total 0.00%
Money Market Accounts:
4,605,805$ 4,605,805 US Bank (Revenue Bonds)0.60%
952,726 952,726 Bank of the West 0.08%
5,558,532$ 5,558,532$ 14.34%Total 0.51%
Federal Agency Securities:
498,710$ 500,000 Federal Home Loan Bank 06/12/18 1.00%
499,760$ 500,000 Federal Home Loan Bank 06/13/18 1.10%
998,470$ 1,000,000$ 2.58%Total 1.05%
Certificates of Deposits:
247,712$ 248,000$ CIT Bank, Salt Lake 05/22/18 1.20%
247,928$ 248,000 Discover 05/22/18 1.20%
247,712$ 248,000 Goldman Sachs Bank 05/22/18 1.20%
247,980$ 248,000 Beal Bank 05/23/18 1.00%
248,497$ 247,000 Barclays Bank 04/30/18 2.23%
248,104$ 248,000 State Bank of India 05/14/18 1.14%
248,268$ 249,000 Webster Bank 05/03/18 0.90%
247,960$ 248,000 American Express Centurion Bank 05/23/18 1.20%
247,524$ 248,000 GE Capital Bank 05/24/18 1.10%
248,410$ 249,000 Oriental Bank & Trust 05/29/18 1.05%
248,313$ 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.00%
248,330$ 249,000 Safra National Bank 05/31/18 1.00%
247,311$ 248,000 Townebank Portsmouth 05/31/18 1.00%
248,318$ 249,000 Mascoma Savings Bank 05/29/18 1.00%
100,049$ 100,000 Ally Bank Midvale Utah 12/11/17 1.54%
198,390$ 200,000 World's Foremost Bk Sydney 05/28/19 1.31%
246,703$ 248,000 Capital One Bk USA Natl Assn 05/13/19 1.20%
246,433$ 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.66%
244,010$ 248,000 EnerBank USA Salt Lake City 08/26/20 1.32%
245,329$ 248,000 EverBank Jacksonville Fla CTF 08/30/19 1.16%
181,638$ 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.23%
242,457$ 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.63%
248,032$ 247,000 PrivateBank & Tr Chicago Ill CTF 03/30/22 2.19%
250,643$ 249,000 JP Morgan Chase Bk NA Columbus 03/31/22 2.43%
5,676,051$ 5,693,000$ 14.65%Total 1.32%
Pooled Investment Accounts:
7,152,623$ 7,152,623$ Local Agency Investment Fund 1.08%
1,317,197 1,317,391 CalTRUST Short Term 1.23%
17,727,367 17,751,718 CalTRUST Medium Term 1.49%
26,197,188$ 26,221,732$ 67.61%1.37%
38,750,164$ 38,793,187$ 100%Total Investments 1.22%
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.
8/31/17
Yorba Linda Water District
Cash & Investment Portfolio Report
August 31, 2017
________________________________
Kelly D. McCann, Senior Accountant
Below is a chart summarizing the yields as well as terms and maturities for the month of August 2017:
Average # of
Month Portfolio Days to
of 2017 Yield Maturity
August 1.22%113
Below are charts comparing operating fund interest for current and prior fiscal years.
Actual Interest 8/31/2016 8/31/2017
Monthly - August 22,630$ 31,942$
Year-to-Date 30,289$ 39,044$
Budget 2016/2017 2017/2018
Interest Budget, August YTD 19,167$ 51,667$
Interest Budget, Annual 115,000$ 310,000$
Interest earned on investments is recorded in the fund that owns the investment.
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 $38.7 million in cash and investments which is split between minimum reserve requirements and what is available
to meet current year obligations (operating costs, debt service, capital costs). The number of Days in Cash for Un-Restricted
Water Reserve balance is 389 and Un-Restricted Sewer Reserve balance is 1,282.
Reserve Cash and
Requirements Investments
July 2017 % Alloc August 2017 % Alloc "Target Available for
Fund Description Balance 7/31/2017 Balance 8/31/2017 Levels"CY Obligations
Water Operating Reserve 14,072,814$ 42.37%14,538,404$ 42.96%14,118,340$ 420,064
Water Emergency Reserve 3,467,724$ 10.44%3,469,414$ 10.25%3,467,160 2,254
Water Capital Project Reserve 5,479,628$ 16.50%5,242,447$ 15.49%5,533,845 (291,398)
Water Employee Liability Reserve 1,249,864$ 3.76%1,249,873$ 3.69%1,249,850 23
Rate Stabilization Reserve 4,003,323$ 12.05%4,010,178$ 11.85%4,000,000 10,178
Un-Restricted Water Reserve Balance 28,273,352 28,510,316$ 28,369,195$ 141,121$
Conservation Reserve 147,700$ 0.44%111,262$ 0.33%- 111,262
Restricted Water Reserve Balance 147,700 111,262$
Sewer Operating Reserve 844,466$ 2.54%1,244,779$ 3.68%743,496 501,283
Sewer Emergency Reserve 1,147,799$ 3.46%1,150,036$ 3.40%1,146,128 3,908
Sewer Employee Liability Reserve 500,054$ 1.51%500,054$ 1.48%500,000 54
Sewer Capital Project Reserve 2,299,127$ 6.92%2,327,514$ 6.88%2,267,699 59,815
Un-Restricted Sewer Reserve Balance 4,791,447 5,222,383$ 4,657,323 565,060
Total Reserve Balances 33,212,499$ 100.00%33,843,961 100.00%33,026,518$ 817,443$
Water Operating 267,098 175,268
Sewer Operating 400,102 125,130
667,200 300,397
Revenue Bond 2017A-Acquisition Fund 4,743,960 4,605,805
Total Cash and Investments 38,623,659$ 38,750,164$
Cash & Investment Summary Report
Cash & Investment Summary Comparison Between Current and Previous Month
Wells Fargo Bank Checking
US Bank Held (Restricted)
Yorba Linda Water District
Fair Value Measurement Report
August 31, 2017
Quoted Observable Unobservable
Prices Inputs Inputs
Investments Level 1 Level 2 Level 3 Total
CalTRUST Investment Pool -$ 19,044,564$ -$ 19,044,564$
Local Agency Investment Fund - 7,152,623 - 7,152,623
U.S. Government Sponsored
Agency Securities - 998,470 - 998,470
Negotiable Certificates of Deposit - 5,676,051 - 5,676,051
Total Investments -$ 32,871,709$ -$ 32,871,709$
ITEM NO. 11.1
AGENDA REPORT
Meeting Date: October 10, 2017
Subject:Interagency Committee with MWDOC and OCWD
(Miller/Nederhood)
· Minutes of the meeting held September 28, 2017 at 4:00 p.m.
· Next meeting scheduled November 20, 2017 at 4:00 p.m.
ATTACHMENTS:
Name:Description:Type:
2017-09-28_-_Minutes_-_YLWD-MWDOC-OCWD.docx Minutes Minutes
Minutes of the YLWD/MWDOC/OCWD Interagency Committee Meeting Held September 28, 2017 at 4:00 p.m. 1
MINUTES OF THE
YORBA LINDA WATER DISTRICT
INTERAGENCY COMMITTEE MEETING WITH MWDOC AND OCWD
Thursday, September 28, 2017, 4:00 P.M.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 4:00 p.m.
2. ROLL CALL
YLWD COMMITTEE MEMBERS YLWD STAFF
J. Wayne Miller, President Marc Marcantonio, General Manager
Al Nederhood, Vice President
MWDOC COMMITTEE MEMBER MWDOC STAFF
Brett R. Barbre, Director Rob Hunter, General Manager
OCWD COMMITTEE MEMBER OCWD STAFF
Roger Yoh, Director Mike Markus, General Manager
OTHER ATTENDEES
Brooke Jones, YLWD Director (As observer only - non-participatory.)
3. PUBLIC COMMENTS
None.
4. DISCUSSION ITEMS
4.1. Current Water Conservation Legislation
There was robust discussion on AB 1668/SB 606 and the potential
opportunities to amend the bill. There was also discussion pertaining to
SB 623, the Water Connection Tax bill.
4.2. MWD Water Supply Conditions and Outlook
Supply conditions are strong and southern California is in a much stronger
position than in years past. It is anticipated that adequate deliveries
through the end of the FISCAL year will continue to be sufficient to
replenish the Orange County Groundwater Basin.
Minutes of the YLWD/MWDOC/OCWD Interagency Committee Meeting Held September 28, 2017 at 4:00 p.m. 2
4.3. Status of Oroville Reservoir and State Water Project Deliveries
The repairs on the spillway will be concluded in October so all of the work
can be shifted to the completion of the repairs on the emergency spillway.
The plan is for Oroville to remain at 50% capacity through the rainy
season and to avoid usage of the spillway.
4.4. Condition of OCWD Groundwater Basin, Water Purchased for Recharge,
and In-Lieu Recharge
With the MWD In-Lieu program in place, the Orange County Groundwater
Basin should reach an overdraft level of roughly 200,000 AF, close to the
preferred operating range. MWDOC has completed agreements with
every producer within their service area. In addition, Anaheim, Santa Ana
and Fullerton are in various stages of approval and should begin taking In-
Lieu water soon. It is anticipated that Orange County will reach the
100,000 AF target by the end of FY 2017-18.
4.5. MWD’s Request for Conjunctive Use Program Storage and Potential
Cyclic Storage Agreement
The program is in place (see Item No. 4.4. above).
4.6. PFOS/PFOA Testing and Mitigation
No change in standards is expected by the EPA. Based on the results of
the litigation on Chrome 6, it is not anticipated that the State Water Board
will be issuing any lower standards on PFOS/PFOA in the near future.
4.7. Huntington Beach Desalination Project
Poseidon is in the process of renewing their permits prior to final approval
by the Coastal Commission. Next up is a hearing before the State Lands
Commission in October 2017.
4.8. California Water Fix Project
The MWD Board will be voting on their 26% participation at the October
10, 2017 meeting. With the Westlands Water District voting to not
participate, as the project is currently constituted, it remains to be seen
what the actual impact will be on the other parties in the State Water
Project and Central Valley Project.
4.9. North and South Basin Projects
Minutes of the YLWD/MWDOC/OCWD Interagency Committee Meeting Held September 28, 2017 at 4:00 p.m. 3
OCWD prevailed in their litigation in the North Basin and have
commenced pumping and treating the water from the east edge of the
plume.
4.10. YLWD Well Projects
YLWD will be hosting a ribbon cutting for Well 21 on November 3, 2017.
In addition, the bids for Well 22 came in well below the engineer’s
estimate.
4.11. Future Agenda Items
None.
5. ADJOURNMENT
5.1. The meeting was adjourned at 5:17 p.m.
BB
ITEM NO. 13.1
AGENDA REPORT
Meeting Date: October 10, 2017
Subject:Meetings from October 11 - December 31, 2017
ATTACHMENTS:
Name:Description:Type:
BOD_-_Activities_Calendar.pdf Backup Material Backup Material
PA = Preauthorized
Board of Director Activity Calendar
Event Date Time Attendance By
October
LAFCO Wed, Oct 11 8:00 AM Nederhood (As Needed)
Yorba Linda Planning Commission Wed, Oct 11 6:30 PM Hawkins (As Needed)
WACO Fri, Oct 13 7:30 AM Nederhood
YL City Council Tue, Oct 17 6:30 PM Hawkins
MWDOC Wed, Oct 18 8:30 AM Nederhood
OCWD Wed, Oct 18 5:30 PM Jones
Board of Directors Workshop Meeting Thu, Oct 19 6:30 PM
Board of Directors Regular Meeting Tue, Oct 24 6:30 PM
MWDOC/OCWD Joint Planning Committee Wed, Oct 25 8:30 AM Jones/Nederhood
OCSD Wed, Oct 25 6:00 PM Hawkins/Jones
Yorba Linda Planning Commission Wed, Oct 25 6:30 PM Hawkins (As Needed)
OCWD Groundwater Adventure Tour Thu, Oct 26 8:00 AM Jones
ISDOC Thu, Oct 26 11:30 AM Hawkins/Nederhood
November
MWDOC Wed, Nov 1 8:30 AM Nederhood
OCSD Operations Committee Wed, Nov 1 5:00 PM Hawkins
OCWD Wed, Nov 1 5:30 PM Jones
YL State of the City Thu, Nov 2 11:30 AM Jones/Miller/Nederhood
MWDOC Elected Officials' Forum Thu, Nov 2 6:00 PM Jones/Nederhood
WACO Fri, Nov 3 7:30 AM Jones (All Directors PA)
Well 21 Ribbon Cutting Ceremony Fri, Nov 3 10:00 AM Hall/Miller/Nederhood
ISDOC Executive Committee Tue, Nov 7 7:30 AM Nederhood
Yorba Linda City Council Tue, Nov 7 6:30 PM Miller
LAFCO Wed, Nov 8 8:00 AM Nederhood (As Needed)
Board of Directors Regular Meeting Tue, Nov 14 6:30 PM
MWDOC Wed, Nov 15 8:30 AM Nederhood
OCWD Wed, Nov 15 5:30 PM Jones
Yorba Linda Planning Commission Wed, Nov 15 6:30 PM Hawkins (As Needed)
Board of Directors Workshop Meeting Thu, Nov 16 6:30 PM
Interagency Committee Meeting with MWDOC and OCWD Mon, Nov 20 4:00 PM Miller/Nederhood
YL City Council Tue, Nov 21 6:30 PM Nederhood
OCSD Wed, Nov 22 6:00 PM Hawkins/Jones
District Offices Closed Thu, Nov 23 7:00 AM
ACWA/JPIA Fall Conference Mon, Nov 27 8:00 AM Nederhood
ACWA/JPIA Fall Conference Tue, Nov 28 8:00 AM Nederhood
ACWA Fall Conference Tue, Nov 28 8:00 AM Jones/Nederhood
Board of Directors Regular Meeting Tue, Nov 28 6:30 PM
ACWA Fall Conference Wed, Nov 29 8:00 AM Jones/Nederhood
Yorba Linda Planning Commission Wed, Nov 29 6:30 PM Hawkins (As Needed)
ACWA Fall Conference Thu, Nov 30 8:00 AM Jones/Nederhood
PA = Preauthorized
Board of Director Activity Calendar
Event Date Time Attendance By
December
WACO Fri, Dec 1 7:30 AM Jones (All Directors PA)
ACWA Fall Conference Fri, Dec 1 8:00 AM Jones/Nederhood
ISDOC Executive Committee Tue, Dec 5 7:30 AM Nederhood
Yorba Linda City Council Tue, Dec 5 6:30 PM Hall
MWDOC Wed, Dec 6 8:30 AM Nederhood
OCSD Operations Committee Wed, Dec 6 5:00 PM Hawkins
OCWD Wed, Dec 6 5:30 PM Jones
Board of Directors Workshop Meeting Thu, Dec 7 6:30 PM
WACO Fri, Dec 8 7:30 AM Jones (All Board)
Board of Directors Regular Meeting Tue, Dec 12 6:30 PM
CRWUA Annual Conference Wed, Dec 13 8:00 AM Jones/Nederhood
LAFCO Wed, Dec 13 8:00 AM Nederhood (As Needed)
Yorba Linda Planning Commission Wed, Dec 13 6:30 PM Hawkins (As Needed)
CRWUA Annual Conference Thu, Dec 14 8:00 AM Jones/Nederhood
CRWUA Annual Conference Fri, Dec 15 8:00 AM Jones/Nederhood
Joint Committee Meeting with City of Yorba Linda Mon, Dec 18 4:00 PM Nederhood/Hawkins
YL City Council Tue, Dec 19 6:30 PM Hawkins
MWDOC Wed, Dec 20 8:30 AM Nederhood
OCWD Wed, Dec 20 5:30 PM Jones
District Offices Closed Mon, Dec 25 7:00 AM
Board of Directors Regular Meeting Wed, Dec 27 8:30 AM
OCSD Wed, Dec 27 6:00 PM Hawkins/Jones
Yorba Linda Planning Commission Wed, Dec 27 6:30 PM Hawkins (As Needed)
BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING
M E M O R A N D U M
TO: YLWD Board of Directors
FROM: Brett R. Barbre
DATE: October 10, 2017
RE: Why PARS for Management of YLWD’s Section 115 Trust
BACKGROUND
In 2011, the Yorba Linda Water District (YLWD) Board of Directors established an
irrevocable Other Post Employment Benefits (OPEB) trust with the California
Employer’s Retiree Benefit Trust (CERBT). This Section 115 trust is specifically
designed to deal with OPEB related expenses and is administered by staff of the
CalPERS. It is designed to offset the long term liabilities associated with OPEB
related expenses.
On September 12, 2017, the Board of Directors of the YLWD was presented with
four options to prefund PERS pension liabilities. The four options are as follows:
1) YLWD could establish their own Section 115 trust, as the IRS recently
opined that establishment of Section 115 trusts may be utilized to pay
down long term pension debt. However, the administration of our own
trust would require a sophisticated investment strategy and would be cost
prohibitive to contract out those services for an agency of our size.
2) YLWD could issue debt to pre-pay the pension liability. Pension
Obligation Bonds (POB) are routine cash management strategies for large
agencies who are active in the market. These are generally taxable
bonds which require a higher rate.
3) YLWD could opt for the “New Start Plan” with PERS to pay down the
liabilities. However, YLWD would be locked into a program where the
payments would be required every year and no flexibility is provided.
ITEM NO. 8.1.
MATERIALS SUBMITTE BY: Brett Barbre
MEETING DATE: October 10, 2017
4) YLWD could open a Section 115 trust account with an entity that manages
an investment trust designed to prefund pension account liabilities. The
Pension Rate Stabilization Program (PRSP), which has been established
by the Public Agency Retirement Services (PARS), is the only permitted
entity available to California public agencies.
After consultation with our Municipal Advisors, Fieldman, Rolapp & Associates, it
was recommended that we open an account with PARS for the purposes of pre-
funding PERS Pension Liabilities.
During discussions with PARS, it was determined that a Section 115 trust would be
established on our behalf that could be used to prefund both OPEB and PERS
Pension Liabilities. This approach would provide us with the maximum flexibility to
prefund both liabilities while maintaining control of our investment philosophy.
WHY PARS?
PARS has worked with public agencies across the United States for almost 30 years.
There are over 250 agencies using the OPEB trust and over 100 using the pension
trust.
They are active nationally in the Government Finance Officers Association (GFOA)
and in California, the following organizations:
Association of California Water Agencies (ACWA);
California Municipal Treasurers Association (CMTA);
California Society of Municipal Finance Officers (CSMFO);
California Special District Association (CSDA);
PARS serves the following Orange County Cities for OPEB/PERS funding:
Brea (PERS only)
Fountain Valley (OPEB and PERS)
Fullerton (OPEB and PERS)
Huntington Beach (OPEB and PERS)
Lake Forest (OPEB and PERS)
Santa Ana (OPEB and PERS)
Stanton (OPEB and PERS)
Tustin (OPEB and PERS)
Westminster (PERS only)
ITEM NO. 8.1.
MATERIALS SUBMITTE BY: Brett Barbre
MEETING DATE: October 10, 2017
PARS serves the following Water Districts in Orange County:
Mesa Water District (OPEB and PERS)
Municipal Water District of Orange County (OPEB only)
Orange County Water District (retirement)
South Coast Water District (OPEB and PERS)
PARS has an excellent track record and agencies can select their level of risk to
reflect their investment philosophy. In addition, PARS is a private entity that works
for the benefit of local agencies and their fees are flat. Finally, the PARS returns, net
of fees, have outperformed CALPERS, and they provide two years of
reimbursements versus one, and assets in both plans aggregate to provide a lower
fee.
A representative of PARS will be attending the October 24th Board Meeting.
ITEM NO. 8.1.
MATERIALS SUBMITTE BY: Brett Barbre
MEETING DATE: October 10, 2017