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HomeMy WebLinkAbout2018-01-23 - Board of Directors Meeting Agenda Packet (B) AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, January 23, 2018, 6:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Al Nederhood, President Brooke Jones, Vice President Andrew J. Hall, Director Phil Hawkins, Director J. Wayne Miller, Director 4. ADDITIONS/DELETIONS TO THE AGENDA 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports 6. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three minutes. 7. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 7.1. Minutes of the Board of Directors Special and Regular Meetings Held January 9, 2018 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $4,192,719.61. 7.3. Award of Wellhead Equipping Design of YLWD Well 22 Recommendation: That the Board of Directors authorize execution of a Professional Services Agreement with Webb Associates to provide professional engineering services for Wellhead Equipping of YLWD Well 22 for a fee not to exceed $133,800. 7.4. Award of Construction Contract for Pressure Regulating Stations (PRS) Rehabilitation Phase 2 Project Recommendation: That the Board of Directors award the Construction Contract for the PRS Rehabilitation Phase 2 Project to Big Ben, Inc. for $630,585.00, Job No. J2014-11. 7.5. Bid Rejection for Construction Contract for Tract 15199 Waterline Replacement Project Recommendation: That the Board of Directors reject all bids for the Construction Contract for the Tract 15199 Waterline Replacement Project, Job No. J2017-24 and direct staff to readvertize. 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. Revising Procedures for Administration of Employer-Employee Relations Between the District and Its Recognized Employee Organizations Recommendation: That the Board of Directors adopt Resolution No. 18-03 revising the procedures for administration of employer-employee relations between the District and its recognized employee organizations and rescinding Resolution No. 09-11. 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 December 31, 2017 9.2. Cash and Investment Report for Period Ending December 31, 2017 9.3. Evaluation of Board Policies and Procedures Including Incorporation of Annual Self- Assessment (Hall) 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 (Nederhood/Jones) · Next meeting scheduled January 25, 2018 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Nederhood/Jones) · Minutes of meeting held December 18, 2017 at 4:00 p.m. will be provided when available. · Next meeting scheduled March 19, 2018 at 4:00 p.m. at YL City Hall. 11.3. Joint Agency Committee with City of Placentia (Nederhood/Jones) · Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS 12.1. OC LAFCO - January 10, 2018 (Nederhood - As Needed) 12.2. YL Planning Commission - January 10, 2018 (Hawkins - As Needed) 12.3. YL City Council - January 16, 2018 (Jones) 12.4. MWDOC Board - January 17, 2018 (Nederhood/Jones) 12.5. OCWD Board - January 17, 2018 (Miller/Jones) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from January 24 - March 31, 2018 14. ADJOURNMENT 14.1. A Board of Directors Workshop Meeting to conduct a mid-year budget review has been scheduled Thursday, February 1, 2018 at 4:30 p.m. The next Regular Board of Directors Meeting will be held Tuesday, February 13, 2018. 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: January 23, 2018 Subject:Minutes of the Board of Directors Special and Regular Meetings Held January 9, 2018 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2018-01-09_-_Minutes_-_BOD_(A).doc Minutes Minutes 2018-01-09_-_Minutes_-_BOD_(B).doc Minutes Minutes Minutes of the YLWD Board of Directors Special Meeting Held January 9, 2018 at 5:30 p.m. 1 2018-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, January 9, 2018, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 5:32 p.m. 2. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Al Nederhood, President Marc Marcantonio, General Manager Brooke Jones, Vice President Brett Barbre, Assistant General Manager Andrew J. Hall Gina Knight, HR/Risk and Safety Manager Phil Hawkins Annie Alexander, Executive Asst/Board Secretary J. Wayne Miller ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Laura Kalty, Partner, Liebert Cassidy Whitmore 3. PUBLIC COMMENTS None. 4. CLOSED SESSION The meeting was adjourned to Closed Session at 5:32 p.m. All Directors were present. Also present were General Manager Marc Marcantonio, Assistant General Manager Brett Barbre, HR/Risk and Safety Manager Gina Knight, General Counsel Andrew Gagen, and Labor Counsel Laura Kalty. 4.1. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Marc Marcantonio, General Manager Brett Barbre, Assistant General Manager Gina Knight, HR/Risk and Safety Manager Vivian Lim, Human Resources Analyst Laura Kalty, Labor Counsel Employee Organization: YLWD Employees Association Minutes of the YLWD Board of Directors Special Meeting Held January 9, 2018 at 5:30 p.m. 2 2018-XXX The Board reconvened in Open Session at 6:31 p.m. General Counsel Gagen reported that no action was taken during Closed Session that was required to be reported under the Brown Act. 5. ADJOURNMENT 5.1. The meeting was adjourned at 6:31 p.m. Annie Alexander Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held January 9, 2018 at 6:30 p.m. 1 2018-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, January 9, 2018, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:31 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Al Nederhood, President Marc Marcantonio, General Manager Brooke Jones, Vice President Brett Barbre, Assistant General Manager Andrew J. Hall Steve Conklin, Engineering Manager Phil Hawkins Gina Knight, HR/Risk and Safety Manager J. Wayne Miller Delia Lugo, Finance Manager Annie Alexander, Executive Assistant Mike Carreon, Facilities Maintenance Worker Javier Martinez, Water Production Supt Ken Mendum, Water Maintenance Supt Kaden Young, Management Analyst ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Tom Lindsey, Councilmember, City of Yorba Linda Ryan Gunstream, Sr Energy Bus Conslt, Honeywell Energy Services Group Mike Kempa, Regional Sales Mgr, Honeywell Energy Services Group Greg Lachanski, Sr Tech Proj Mgr, Honeywell Energy Services Group Mary Wyand, Regional Solutions Dev Eng, Honeywell Energy Services Group 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 January 9, 2018 at 6:30 p.m. 2 2018-XXX President Nederhood commended Director Miller for his service as President during 2017 and presented him with a proclamation. Each of the other Directors also commended Director Miller. 5.2. Presentation from Honeywell Energy Services Group Regarding Potential Cost Savings Ryan Gunstream and other representatives from Honeywell provided a presentation regarding the company’s services, the team’s efforts to date including a feasibility review, the California Government Code (GC) 4217 program and associated benefits, and estimated cost savings for identified projects. Discussion followed regarding other public agencies’ participation in the program, the process for selection of an energy services company (ESCO), the ESCO’s role and responsibilities, and available financing options. 5.1. Elected Official Liaison Reports (Continued) Councilmember Tom Lindsey commented on the recent rainfall. 6. PUBLIC COMMENTS Greg Shultz (resident), commented on projects identified by Honeywell in the feasibility review, clarifying the ESCO’s role in the GC 4217 program, and how the estimated cost savings would be achieved. Julia Schultz (resident), commented on legislation discussed during the District’s recent joint agency committee meeting with the City of Yorba Linda, and clarifying how the estimated cost savings associated with the GC 4217 program would be achieved and quantified. An unknown resident spoke in favor of the District’s participation in the GC 4217 program. 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 December 7, 2017 Recommendation: That the Board of Directors approve the minutes as presented. Minutes of the YLWD Board of Directors Regular Meeting Held January 9, 2018 at 6:30 p.m. 3 2018-XXX 7.2. Minutes of the Board of Directors Special and Regular Meetings Held December 12, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payments of Bills, Refunds, and Wire Transfers as of December 21, 2017 and January 9, 2018 Recommendation: That the Board of Directors ratify the disbursements of December 21, 2017 in the amount of $2,091,649.67, and ratify and authorize disbursements for January 9, 2018 in the amount of $1,092,443.74. 7.4. Revising Budgeted Positions for the Remainder of Fiscal Year 2018 Recommendation: That the Board of Directors adopt Resolution No. 18-01 revising the budgeted positions for the remainder of Fiscal Year 2018 and rescinding Resolution No. 17-37. 7.5. Modifying Salary Ranges for Management Employees for the Remainder of Fiscal Years 2015-2018 Recommendation: That the Board of Directors adopt Resolution No. 18-02 amending Exhibit B of Resolution No. 15-08 to modify the Salary Ranges for Management Employees for the remainder of Fiscal Years 2015-2018 and rescinding Resolution No. 17-38. 8. ACTION CALENDAR 8.1. Revising Procedures for Administration of Employer-Employee Relations Between the District and Its Recognized Employee Organizations Staff explained the need for revising the procedures to further clarify the guidelines for the meet and confer process. Staff also reviewed the redline version of the resolution which identified changes suggested by staff, the bargaining unit, and the District’s labor counsel. Discussion followed regarding the impact of specifying a month for decertification, the role of the bargaining unit’s representative, and language contained in the section regarding impasse procedures. The Board determined to defer consideration of this matter to the next regular meeting and requested staff include a redline version of the resolution which identified the different parties revisions. Minutes of the YLWD Board of Directors Regular Meeting Held January 9, 2018 at 6:30 p.m. 4 2018-XXX 8.2. Committee, Agency, and Intergovernmental Meeting Assignments President Nederhood briefly commented on Directors’ attendance at committee, agency, and intergovernmental meetings. Director Hawkins made a motion, seconded by Director Miller, to approve the proposed committee, agency and intergovernmental meeting assignments for the next calendar year as presented, and preauthorize Director attendance at events sponsored by the following organizations in line with the FY18 budget: Association of California Water Agencies Association of California Water Agencies - Joint Powers Insurance Authority American Water Works Association California-Nevada Section of American Water Works Association California Association of Sanitation Agencies City, County and State Governmental Agencies (Including meetings with elected/appointed officials and staff.) Colorado River Water Users Association California Special Districts Association Independent Special Districts of Orange County Orange County Local Agency Formation Commission Municipal Water District of Orange County Metropolitan Water District of Southern California Orange County Sanitation District Orange County Water Association Orange County Water District Special District Leadership Foundation Urban Water Institute Water Advisory Committee of Orange County Motion carried 5-0. 9. DISCUSSION ITEMS Staff reviewed key information contained in the following financial reports. 9.1. Budget to Actual Reports for the Month Ending November 30, 2017 9.2. Cash and Investment Report for Period Ending November 30, 2017 Minutes of the YLWD Board of Directors Regular Meeting Held January 9, 2018 at 6:30 p.m. 5 2018-XXX 9.3. Modification of Start Time for Regular Meetings (Miller) The Board discussed modifying the time for regular meetings to earlier in the evening. It was determined that no change would be made at this time. 9.4. Status of Engineering and Operations Activities Staff reported on the status of various construction projects, an expected reimbursement from the County, and a draft water/sewer facilities agreement for the Cielo Vista housing development. Staff also reported on preventative maintenance and leak detection activities during 2017 in addition to pending repairs to a water transmission line. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports None. 10.2. General Manager's Report General Manager Marc Marcantonio commented on the status of pending water conservation legislation and regulations. He then asked each of the managers or their designees to report on activities within their respective departments. 10.3. General Counsel’s Report None. 10.4. Future Agenda Items and Staff Tasks Vice President Jones requested an item on the next agenda to discuss the District’s pay plan matrixes. Staff suggested this matter be discussed during closed session at the February 13, 2018 meeting. President Nederhood requested a future agenda item to discuss redesigning the District’s water/sewer bill and promoting electronic payment options. Minutes of the YLWD Board of Directors Regular Meeting Held January 9, 2018 at 6:30 p.m. 6 2018-XXX Staff noted that a presentation regarding the DropCountr customer portal along with an overview of the District’s website content and analytics was scheduled for the February 13, 2018 meeting. Director Miller requested a future agenda item to discuss conducting an open house and facility tours. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD Next meeting is scheduled January 25, 2018 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda Minutes of the meeting held December 18, 2017 at 4:00 p.m. will be provided when available. Director Miller briefly commented on topics discussed during the meeting. Next meeting is scheduled March 19, 2018 at 4:00 p.m. at YL City Hall. 11.3. Joint Agency Committee with City of Placentia Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS The Directors noted their attendance at the following meetings. Director Miller presented a few slides relating to Item No. 12.9. 12.1 CRWUA Annual Conference – December 13-15, 2017 (Jones/Nederhood) 12.2 YL Planning Commission – December 13, 2017 (Hawkins – As Needed) 12.3. YL City Council – December 19, 2017 (Hawkins) 12.4. MWDOC Board – December 20, 2017 (Jones) 12.5. OCWD Board – December 20, 2017 (Jones) 12.6. OCSD Board – December 20, 2017 (Hawkins) 12.7 MWDOC Board – January 3, 2018 (Nederhood) Minutes of the YLWD Board of Directors Regular Meeting Held January 9, 2018 at 6:30 p.m. 7 2018-XXX 12.8. OCSD Operations Committee – January 3, 2018 (Hawkins) 12.9. OCWD Board – January 3, 2018 (Jones) 12.10 WACO – January 5, 2018 (Nederhood) 12.11 ISDOC Executive Committee – January 9, 2018 (Nederhood) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from January 10 – February 28, 2018 The Board made no changes to the activity calendar. 14. ADJOURNMENT 14.1. The meeting was adjourned at 8:44 p.m. Annie Alexander Board Secretary ITEM NO. 7.2 AGENDA REPORT Meeting Date: January 23, 2018 Budgeted:Yes To:Board of Directors Cost Estimate:$4,192,719.61 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 $4,192,719.61. DISCUSSION: The items on this disbursement list include: A check of $85,500.00 to Bakersfield Well & Pump Co. for Well #22 drilling progress payment #01; a check of $40,778.88 to California United Bank for the Fairmont Booster Pump Station retention payment #13; a check of $2,339,101.67 to OCWD – Pump Tax for replenishment assessment for July 2017 – December 2017; a check of $774,798.76 to Pacific Hydrotech Corporation for Fairmont booster pump station progress payment #13; a check of $53,370.40 to SWRCB for the annual water service connection fees; and a wire of $422,389.62 to MWDOC for November 2017 water purchases. The balance of $190,624.37 is for routine invoices. The Accounts Payable check register total is $3,906,563.70 and Payroll No. 01 total is $286,155.91, where the total of all listed disbursements for this agenda report is $4,192,719.61. 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: 18-CS_0123.pdf Cap Sheet Backup Material CkReg012318.pdf Check Register Backup Material 18_CC_0123.pdf Credit Card Summary Backup Material Summary of Disbursements January 23, 2018 CHECK NUMBERS & WIRES: Computer Checks 71511—71601 $ 3,484,174.08 ____________ $ 3,484,174.08 WIRES: W 011218 MWDOC $ 422,389.62 _____________ $ 422,389.62 TOTAL OF CHECKS & WIRES $3,906,563.70 PAYROLL NO. 01: Direct Deposits $ 177,542.25 Third Party Checks 6858—6866 $ 19,416.78 Payroll Taxes $ 51,098.98 EFT – CalPERS Payroll #01 $ 38,097.90 $ 286,155.91 TOTAL OF PAYROLLS $286,155.91 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $4,192,719.61 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF JANUARY 23, 2018 ==================================================================. Check No.Date Vendor Name Amount Description 71539 01/23/2018 ACWA/JPIA 36,757.52 2ND QUARTER - WORKER COMPENSATION - 10/01/17-12/31/17 71514 01/23/2018 ALICE NEALIS 44.18 CUSTOMER REFUND 71521 01/23/2018 ANNETTE GILBERT 44.18 CUSTOMER REFUND 71540 01/23/2018 Aqua-Metric Sales Co.21,467.94 OPERATIONS WORK MATERIAL 71541 01/23/2018 Aramark 387.36 UNIFORM SERVICE 71554 01/23/2018 ARC 285.12 PW DOC/BID MANAGEMENT 71542 01/23/2018 AT & T - Calnet3 856.24 ATT CALNET3 71543 01/23/2018 Autoscribe Corporation 984.25 PAYMENT VISION GATEWAY 71544 01/23/2018 Bakersfield Well & Pump Company 85,500.00 J09-22#22 - WELL 22 DRILLING 71518 01/23/2018 BARBARA WESTMAN 44.18 CUSTOMER REFUND 71545 01/23/2018 Bee Busters, Inc 300.00 BEE ABATEMENT - COMMERCIAL LOCATION 71546 01/23/2018 BrightView Tree Care Services Inc.8,826.80 LANDSCAPE SERVICE - RICHFIELD 71556 01/23/2018 C. Wells Pipeline 320.56 HYDRANT REPAIR PARTS 71547 01/23/2018 CalCard US Bank 12,580.33 DECEMBER & JANUARY - CREDIT CARD TRANSACTIONS 71548 01/23/2018 California United Bank 40,778.88 J2010-11B - RETENTION PAYABLE #13 71549 01/23/2018 CDM Smith 8,481.32 J09-22#22 - PROF. ENG SVCS 71550 01/23/2018 CDW Government, Inc 4,724.08 SOFTWARE LICENSE RENEWAL AND IT EQUIPMENT 71536 01/23/2018 CHLOE PARKER 152.81 CUSTOMER REFUND 71551 01/23/2018 City Of Placentia 4,880.40 SEWER FEES - DECEMBER 2017 71516 01/23/2018 CLEGG/JULIA PORTER 44.18 CUSTOMER REFUND 71552 01/23/2018 Clinical Lab. Of San Bern.1,440.00 WATER QUALITY - LAB SAMPLING 71555 01/23/2018 Culligan of Santa Ana 1,809.14 EQUIPMENT PE SOFTENER 71531 01/23/2018 DANIEL HWANG 90.28 CUSTOMER REFUND 71528 01/23/2018 DELI LIU 61.76 CUSTOMER REFUND 71557 01/23/2018 Dell Marketing L.P.9,604.83 (6) DELL LATITUDE 5480 71558 01/23/2018 Enthalpy Analytical, Inc.4,184.00 WATER QUALITY LAB TESTING 71520 01/23/2018 ERIK GARCIA 44.18 CUSTOMER REFUND 71513 01/23/2018 ERNEST L RANALLO 44.18 CUSTOMER REFUND 71559 01/23/2018 eSecurity Solutions, LLC 2,455.00 BARRACUDA EMAIL SECURITY 71560 01/23/2018 Estates on Rose Drive LLC 10,701.00 REIMBURSEMENT - SEWER CONNECTION FEE - CANCELLED PROJECT 71515 01/23/2018 EVELYN KATZAROFF 432.63 CUSTOMER REFUND 71561 01/23/2018 EyeMed 1,410.72 EYE MED - JANUARY 2018 71562 01/23/2018 Flex Advantage 117.00 FLEX ADVANTAGE - 26 PARTICIPANTS - DECEMBER 2017 71563 01/23/2018 Fry's Electronics 724.63 IT HARDWARE SUPPLIES 71564 01/23/2018 Golden Bell Products 560.30 DEODORANT ODOR BLOCKS 71530 01/23/2018 GRACE PENA 73.13 CUSTOMER REFUND 71565 01/23/2018 Graybar Electric Co 514.86 PLC HARDWARE 71566 01/23/2018 Haaker Equipment Co.3,467.48 VEHICLE MAINTENANCE - UNIT #168 71567 01/23/2018 Hach Company 136.96 WATER SAMPLING SUPPLIES 71568 01/23/2018 Harrington Industrial 27.69 CL2 REPLACEMENT PARTS 71569 01/23/2018 Hushmand Associates Inc 3,935.00 J10-11B - FAIRMONT BOOSTER PUMP - PROF. SERVICES 71570 01/23/2018 Infosend Inc.4,751.34 POSTAGE & PRINTING FEE 71571 01/23/2018 Jackson's Auto Supply - Napa 205.33 VEHICLE MAINTENANCE - UNIT #175 & #215 71572 01/23/2018 Jacqueline Segura 6.74 MILEAGE REIMBURSEMENT - DECEMBER 2017 71533 01/23/2018 JEANNIE KIM-HAN 25.38 CUSTOMER REFUND 71538 01/23/2018 JONES IMPERIAL 2 LLC 44.18 CUSTOMER REFUND 71573 01/23/2018 Jorge Lopez 118.55 REIMBURSEMENT - MANUAL & COURSE MATERIAL 71519 01/23/2018 JUANITA FOTHERINGHAM 24.89 CUSTOMER REFUND 71574 01/23/2018 KELLY MCCANN 22.00 TRAVEL EXPENSE - GFOA TRAINING 71575 01/23/2018 Kidman Law 15,949.80 LEGAL SERVICE 71576 01/23/2018 Konica Minolta Business 1,708.96 LEASE - C258 & C558 COPIERS 71577 01/23/2018 LA Networks 2,820.00 TECH SERVICE - TRAINING VOIP 71525 01/23/2018 LANDVEST LLC 78.02 CUSTOMER REFUND 71532 01/23/2018 LAURA LIMA 176.29 CUSTOMER REFUND 71512 01/23/2018 LAWRENCE WELLS 44.18 CUSTOMER REFUND 71578 01/23/2018 Liebert Cassidy Whitmore 1,425.00 2018 LCW CONFERENCE - KNIGHT, G & LIM, V 71579 01/23/2018 LPR-Laser Printer Repair Co 819.98 (2) PRINTER SERVICING 71511 01/23/2018 MARIAN BALAY 11.45 CUSTOMER REFUND 71527 01/23/2018 MARISSA CORONA 155.24 CUSTOMER REFUND 71580 01/23/2018 Mc Fadden-Dale Hardware 449.57 PRODUCTION REPAIR PARTS & HARDWARE SUPPLIES 71553 01/23/2018 Merging Communications, Inc.700.00 REMOVE OLD PHONE SYSTEM 71517 01/23/2018 MICHAEL HARVEY 60.31 CUSTOMER REFUND W011218 01/12/2018 Municipal Water District 422,389.62 WATER DELIVERIES - NOVEMBER 17 Yorba Linda Water District Check Register For Checks Dated: 01/10/2018 thru 01/23/2018 71534 01/23/2018 NATIONAL QUARTERS 385.93 CUSTOMER REFUND 71581 01/23/2018 NatPay Online Business Solutions 24.00 DOCULIVERY - DECEMBER 2017 71582 01/23/2018 Nickey Kard Lock Inc 3,917.58 FUEL - 12/15/17 - 12/31/17 71583 01/23/2018 Office Solutions 2,228.26 OFFICE SUPPLIES & TONER 71584 01/23/2018 Orange County Water District 2,339,101.67 REPLENISH ASSESESSMENT - JULY - DECEMBER 2017 71585 01/23/2018 Pacific Hydrotech Corporation 774,798.76 J10-11B - FAIRMONT PUMP STATION UPGRADE - PROG. PMT#13 71524 01/23/2018 PETER OCAMPO 44.18 CUSTOMER REFUND 71586 01/23/2018 Pete's Road Service Inc 976.39 VEHICLE MAINTENANCE - UNIT #199 71587 01/23/2018 Plumbers Depot Inc.497.75 VEHICLE MAINTENANCE - UNIT #197 & #210 71588 01/23/2018 Powerstride Battery 171.20 H40X BATTERY - WELL 18 71589 01/23/2018 Praxair Distribution 158.18 WELDING SUPPLIES 71590 01/23/2018 Pres-Tech 894.33 FILTER & VACUUM HOSE 71522 01/23/2018 PULTE HOMES 1,847.83 CUSTOMER REFUND 71591 01/23/2018 R.E. Michel Company, LLC 142.10 AC PARTS & MATERIALS 71592 01/23/2018 Rachel Padilla/Petty Cash 169.85 PETTY CASH - O010418 & O011118 71526 01/23/2018 RYAN TENPAS 24.86 CUSTOMER REFUND 71523 01/23/2018 SHENGU ZUO 9.71 CUSTOMER REFUND 71593 01/23/2018 Staples Business Advantage 188.34 OFFICE SUPPLIES 71594 01/23/2018 Stater Bros. Markets 108.41 MEETING SUPPLIES 71535 01/23/2018 SUMMER SET MOBILE ESTATES 355.47 CUSTOMER REFUND 71595 01/23/2018 SWRCB 53,370.40 ANNUAL WATER SYSTEM FEES 71596 01/23/2018 Time Warner Cable 600.00 ETHERNET INTRASTATE 71597 01/23/2018 Titan Water Technology Inc 295.00 SERVICE CHARGE - DECEMBER 2017 71598 01/23/2018 Underground Service Alert 239.35 DIGALERT - DECEMBER 2017 71599 01/23/2018 United Industries 826.35 PPE EQUIPMENT & BREAKROOM SUPPLIES 71600 01/23/2018 United Water Works, Inc.769.12 OPERATIONS WORK MATERIAL 71529 01/23/2018 XUEMIN CHEN 277.91 CUSTOMER REFUND 71601 01/23/2018 YO Fire 2,034.44 OPERATIONS WORK MATERIAL 71537 01/23/2018 YORBA LINDA ESTATES 824.40 CUSTOMER REFUND 3,906,563.70 01-11-2018 PAYROLL #01 - EMPLOYEE DIRECT DEPOSIT 177,542.25 01-11-2018 PAYROLL #01 - PAYROLL TAX PAYMENT 51,098.98 01-11-2018 PAYROLL #01 - CALPERS EFT 38,097.90 6858 1-11-2018 COLONIAL LIFE 107.10 6859 1-11-2018 FLEX ADVANTAGE 2479.09 6860 1-11-2018 LINCOLN FINANCIAL GROUP 6,234.22 6861 1-11-2018 NATIONWIDE RETIREMENT SOLUTIONS 8,649.78 6862 1-11-2018 GARNISHMENT 231.00 6863 1-11-2018 CA STATE DISBURSEMENT UNIT 366.92 6864 1-11-2018 CA STATE DISBURSEMENT UNIT 339.69 6865 1-11-2018 CA STATE DISBURSEMENT UNIT 389.53 6866 1-11-2018 ORANGE COUNTY SHERIFF'S DEPARTMENT 619.45 286,155.91 Payroll Checks #01 Vendor Name Amount Description ISDOC 51.00 ISDOC Quarterly luncheon - Nederhood, Hawkins & Marcantonio CWEA 180.00 CWEA renewal - Collection GD1 - Cuellar, R Home Depot 32.29 Tools & equipment - Facilities Harrington Industrial 36.21 CL2 replacement parts -Richfield So. Loop Fullerton Paint & Flooring 56.83 CAT yellow paint - 1 gallon Dan Copp Crushing Corp.480.00 Road material disposal Praxair Distribution 15.99 Welding supplies Home Depot 358.89 (64) ready mix concrete bags Craftsman Wood Fired Pizza 237.18 SCWD site tour of YLWD - 15 attendees Verizon Wireless 5,493.00 Verizon Wireless - 10/21 -11/2 SCIE ARMA 30.00 SCIE ARMA monthly meeting - Arambarri, T Staples 549.46 Toner - Operations department Harrington Industrial 348.32 CL2 replacement parts -Well 15 Orange County Water Assn.-Dues 70.00 OCWA membership renewal - Marcantonio, M In-N-Out 39.81 New hire lunch - 6 attendees Home Depot 59.20 Tools & equipment - operations Dell Marketing L.P.59.99 (2) Dell adapter - USB-C to VGA CDW Government, Inc 1,958.78 NETSCOUT LINKRUNER - Connectivity tester Amazon.com 54.25 Vehicle replacement parts - Unit #216 Headsets.com 32.22 (2) Plantronics neck bands CS540 Voipsupply.com 418.16 CyberData - (2) year subscription Harrington Industrial 380.88 CL2 replacement parts - Camino De Bryant Home Depot 239.14 CL2 replacement parts - Camino De Bryant Amazon.com 910.41 Equipment - VOIP phone system upgrade ONLINE Information Services, Inc.43.32 Online collections transactions Answer One Communications 445.00 After hours answering service - November 2017 12,580.33 Cal Card Credit Card U S Bank ITEM NO. 7.3 AGENDA REPORT Meeting Date: January 23, 2018 Budgeted:Yes Total Budget:$2,500,000 To:Board of Directors Cost Estimate:$133,800 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:Award of Wellhead Equipping Design of YLWD Well 22 SUMMARY: Staff solicited proposals to provide professional engineering services for Wellhead Equipping of YLWD Well 22 and received five proposals from qualified engineering firms. Following an evaluation by the District's review team, staff recommends award to Webb Associates for a fee not to exceed $133,800. STAFF RECOMMENDATION: That the Board of Directors authorize execution of a Professional Services Agreement with Webb Associates to provide professional engineering services for Wellhead Equipping of YLWD Well 22 for a fee not to exceed $133,800. DISCUSSION: Staff issued Request for Proposals (RPFs) to eight consulting firms for design, bid support, and construction management services for equipping a new potable water well, referred to as YLWD Well 22. Proposals were received from five qualified engineering firms on January 9, 2018. The District's review team scored and ranked the proposals based on technical approach and proposal content, including project understanding, scope of work, overall project team and experience, and staff-hour allocation per task. Following the technical evaluation and ranking, separate envelopes with fee summaries for each proposal were opened. The results of the scores, ranking, and proposed fees are as follows: Firm Score Ranking Proposed Fee Webb Associates 25.12 1 $133,800 MKN and Associates 24.04 2 $156,820 Stantec 22.14 3 $146,856 Based on the above, staff recommends award to Webb Associates for a fee not to exceed $133,800. This firm had the best proposal, best project team and relevant experience, with a proposed fee and staff hours which were reasonable and appropriate based on the scope of work. Psomas 21.97 4 $225,707 Hazen and Sawyer 21.94 5 $133,730 ITEM NO. 7.4 AGENDA REPORT Meeting Date: January 23, 2018 Budgeted:Yes Total Budget:$726,000 To:Board of Directors Cost Estimate:$630,585 Funding Source:All Water Funds From:Marc Marcantonio, General Manager Job No:J2014-11 Presented By:Steve Conklin, Engineering Manager Dept:Engineering Reviewed by Legal:N/A Prepared By:Bryan Hong, Water Quality Engineer CEQA Compliance:Exempt Subject:Award of Construction Contract for Pressure Regulating Stations (PRS) Rehabilitation Phase 2 Project SUMMARY: On January 11, 2018, bids were received from seven contractors for the PRS Rehabilitation Phase 2 Project. Following review of the bids, staff recommends award to the low-bidder, Big Ben, Inc. for $630,585.00. STAFF RECOMMENDATION: That the Board of Directors award the Construction Contract for the PRS Rehabilitation Phase 2 Project to Big Ben, Inc. for $630,585.00, Job No. J2014-11. DISCUSSION: As part of the District's Capital Improvement Plan, four pressure regulating stations (PRS) were determined as most in need for rehabilitation due to excessive corrosion and deteriorating conditions. District staff completed the design plans and project specifications for the abandonment of two stations, Foxtail PRS and Tiburon PRS, and the replacement of two stations, Hamer PRS and Box Canyon PRS. On December 6, 2017, the District solicited bids for the PRS Rehabilitation Phase II Project. On January 11, 2018, sealed bids were received from seven contractors, in a highly competitive bidding climate. District staff provided an Engineer's Estimate of $575,000. The seven bids ranged from a low of $630,585.00 to a high of $892,071.00, as shown in the summary below. No. Contractor Total Bid Amount 1 Big Ben, Inc.$630,585.00 2 Caliagua, Inc.$675,671.00 The bid tabulation and bid documents from the low-bidder, Big Ben, Inc., were reviewed and confirmed by District staff and found to be responsive and fully in order. Accordingly, staff recommends award to Big Ben, Inc. 3 Ampco Contracting, Inc.$679,000.00 4 GCI Construction, Inc.$708,920.00 5 Pyramid Building & Engineering, Inc.$753,079.00 6 Minako America Corporation, dba Minco Construction $875,950.00 7 General Consolidated Constructors, Inc.$892,071.00 PRIOR RELEVANT BOARD ACTION(S): On October 24, 2017, the Board of Directors approved the Brand Name Requirement for the PRS Rehabilitation Phase 2 Project. ITEM NO. 7.5 AGENDA REPORT Meeting Date: January 23, 2018 Budgeted:Yes Total Budget:$900,000 To:Board of Directors Cost Estimate:$700,000 Funding Source:All Water Funds From:Marc Marcantonio, General Manager Job No:J2017-24 Presented By:Steve Conklin, Engineering Manager Dept:Engineering Reviewed by Legal:N/A Prepared By:Danielle Logsdon, Associate Engineer CEQA Compliance:Exempt Subject:Bid Rejection for Construction Contract for Tract 15199 Waterline Replacement Project SUMMARY: On January 11, 2018, bids were received from eight contractors for the Tract 15199 Waterline Replacement Project. Following review of the bids, the low-bidder submitted a written request to withdraw their bid. The second low-bidder was found to be deficient in required waterline construction experience, and the third low-bid was nearly $150,000 higher than the lowest bid; therefore, staff recommends rejecting all bids and readvertizing. STAFF RECOMMENDATION: That the Board of Directors reject all bids for the Construction Contract for the Tract 15199 Waterline Replacement Project, Job No. J2017-24 and direct staff to readvertize. DISCUSSION: As part of the District's Capital Improvement Plan, it was determined that the waterlines in Tract 15199 were in need for replacement due to a high number of leaks and highly corrosive soil conditions. District staff completed the design plans and project specifications for the replacement of the waterlines. On December 7, 2017, the District solicited bids for the Tract 15199 Waterline Replacement Project. On January 11, 2018, sealed bids were received from eight contractors. District staff provided an Engineer's Estimate of $700,000. The eight bids ranged from a low of $591,297.00 to a high of $1,075,960.00, as shown in the summary below. No. Contractor Total Bid Amount 1 Cedro Construction, Inc $591,297.00 2 Lucas Builders, Inc $640,392.00 After staff opened bids with the bidders present, the low-bidder, Cedro Construction, Inc., contacted staff on January 16 and provided a letter formally requesting to withdraw their bid after realizing they did not include $55,000 worth of labor. Thereafter, staff reviewed the second low-bidder, Lucas Builders, Inc., and determined that they were deficient in required waterline construction experience. The third low-bidder was approximately $150,000 more than the low-bidder. Therefore, staff recommends rejecting all bids and readvertise for new bids. 3 Kana Pipeline, Inc $743,800.00 4 Big Ben, Inc $769,910.00 5 Stephen Doreck Equipment Rentals, Inc $779,600.00 6 GCI Construction, Inc $851,996.00 7 TBU, Inc $911,480.00 8 TE Roberts, Inc $1,075,960.00 PRIOR RELEVANT BOARD ACTION(S): On October 10, 2017, the Board of Directors authorized staff to proceed with the Tract 15199 Waterline Replacement Project. ATTACHMENTS: Name:Description:Type: Location_Map.pdf Location Map Backup Material Ycwba Li oda Wates' District TANCWIRy w a C LI J C YORBA LIN❑A P ¢� EAS T LAKE SPe?'P,ZyZA v a 4R6 LINQ—,4 REGI9PLALJLAI4E � LU LAPALMA ,J 1 rte W _ —A TA...RIVER SANTA ANA CANYON 12 mi N DISCLAWER:77rls map mpprreseafs a visual vid rn.eaded,o a—zF Fublic Uldit}•Dopurfirexrpersanna:xarh FNP Monday, October 2,2017 memagmanr of WQler 5l;rcm Fucr:ro'.Daraprmided hereon is nal o pamrlrce of actual fTwX caadfrions nor a suLarirumftwrararddFau& .and UldicrSrFrnliorl. 04:04:3B PM �► r�x� LYf3cia �{its�� l�l�trl�-t . �- w ;^ 1119117 Leak - Tr 1255fi Ar µo 16 L c rj k JP . � -.49 op 4P TFC 151"ICI i Jy k 9 x�R� F i �asa X010 Leak . dMwd 9'26x'17 LeakTU - �y ,ryry +y���+yy 1 t } f � f IFS Pk 44D 1L�LU 7-751P 51P 199 ,,1-9612 *14 512116 Leak , f - 010 Leak f Tact 15199 D"',L.09;1r lk:.,ai.p ivpi .;L%ta%u%L—d —iwAil eK Prd P&Kfe LYJhYvD�r:w w�i,x�;o-.:ih 1A, wa,ebrmenr 8f wfrkx!M.xfem Ff!lgib.ohu p'+-wdln�frer"-n&,m+r n lnrrr''i-rCr 4Y 44*"eNdd L-MI TrtW I*-a 1 Iterline Emergency Repair Exhibit raFu Oafef ffrford drani?Wand iGtidlrrr�f-0ffdW ITEM NO. 8.1 AGENDA REPORT Meeting Date: January 23, 2018 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Gina Knight, HR/Risk and Safety Manager Dept:Human Resources/Risk Management Prepared By:Gina Knight, HR/Risk and Safety Manager Subject:Revising Procedures for Administration of Employer-Employee Relations Between the District and Its Recognized Employee Organizations SUMMARY: Resolution No. 18-03 revises the established rules of engagement and uniform methods of communications for future negotiations between employees, employee organizations and the Yorba Linda Water District. STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 18-03 revising the procedures for administration of employer-employee relations between the District and its recognized employee organizations and rescinding Resolution No. 09-11. DISCUSSION: On January 9, 2018, staff presented this item to the Board of Directors. The Board asked staff to bring this item back for approval at a future meeting along with a copy of the revised document which identified the revisions and who recommended those revisions. Resolution No. 09-11 was reviewed by the District’s Negotiating Team (Assistant General Manager, HR Staff and Liebert Cassidy Whitmore employment law attorney) and the Employee’s Bargaining Unit Representatives. Several housekeeping items were discussed and the resolution was revised to clarify the guidelines to be used during the meet and confer process. In summary, the resolution addresses the following: Procedures for Meeting and Conferring Filing Recognition Procedures by an Employee Organization Employee Organization Election Procedures Decertification Procedures of Recognized Employee Organizations Employee Organization Activities - Use of District Resources Impasse Procedures The attached Resolution No. 18-03 represents the agreement to the revisions by both parties following the successful completion of the meet and confer process and will continue to encourage more effective and successful good-faith bargaining between the District and the employee organization. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors adopted Resolution No. 09-11 implementing Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned “Local Public Employee Organizations”. ATTACHMENTS: Name:Description:Type: Resolution_No._18-03_-_Revised_EERR.doc Resolution Resolution Resolution_No._18-03_-_Revised_EERR_-_Redline.pdf Resolution with Track Changes Backup Material Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 1 RESOLUTION NO. 18-03 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT REVISING THE PROCEDURES FOR ADMINISTRATION OF EMPLOYER-EMPLOYEE RELATIONS BETWEEN THE DISTRICT AND ITS RECOGNIZED EMPLOYEE ORGANIZATIONS AND RESCINDING RESOLUTION NO. 09-11 WHEREAS, the District previously implemented Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned “Local Public Employee Organizations” as adopted by Resolution No. 09-11; and WHEREAS, the District intends to continue strengthening methods of administering employer-employee relations through the establishment of uniform methods of communications between employees, employee organizations and the Yorba Linda Water District; and WHEREAS, it is the desire of the Board of Directors to revise the procedures for administration of employer-employee relations between the District and its recognized employee organizations. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District that the following provisions be implemented: Article 1. General Provisions Section 1. Statement of Purpose This Resolution implements Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned "Local Public Employee Organizations," (the Meyers-Milias- Brown Act) by providing orderly procedures for the administration of employer-employee relations between the Yorba Linda Water District and its employee organizations. However, nothing contained herein shall be deemed to supersede the provisions of state law, ordinances, resolutions and rules which establish and regulate the merit and civil service system, or which provide for other methods of administering employer-employee relations. This Resolution is intended, instead, to strengthen merit, civil service and other methods of administering employer-employee relations through the establishment of uniform and orderly methods of communications between employees, employee organizations and the Yorba Linda Water District. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 2 It is the purpose of this Resolution to provide procedures for meeting and conferring in good faith with Recognized Employee Organizations regarding matters that directly and significantly affect and primarily involve the wages, hours and other terms and conditions of employment of employees in appropriate units and that are not preempted by federal or state law, or by the laws governing and/or creating the Yorba Linda Water District. However, nothing herein shall be construed to restrict any legal or inherent exclusive Yorba Linda Water District rights with respect to matters of general legislative or managerial policy, which include among others: The exclusive right to determine the mission of its constituent departments, commissions, and boards; set standards of service; determine the procedures and standards of selection for employment; determine the rules and policies under which employment is to be managed; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other lawful reasons; determine the content of job classifications; subcontract work; maintain the efficiency of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. Section 2. Definitions As used in this Resolution, the following terms shall have the meanings indicated: a. “Appropriate unit” means a unit of employee classes or positions, established pursuant to Article II hereof. b. "District" means the Yorba Linda Water District, and, where appropriate herein, refers to the Board of Directors (“Board”) of the District or any duly authorized District representative as herein defined. c. "Confidential Employee" means an employee who, in the course of his or her duties, has access to confidential information relating to the District's administration of employer-employee relations. d. "Consult/Consultation in Good Faith” means to communicate orally or in writing with all effected recognized employee organizations for the purpose of presenting and obtaining views or advising of proposed actions in a good faith effort to reach a consensus; and, as distinguished from meeting and conferring in good faith regarding matters within the required scope of the meet and confer process, does not involve an exchange of proposals and counterproposals in an endeavor to reach agreement in the form of a Memorandum of Understanding, nor is it subject to Article IV hereof. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 3 e. "Day" means calendar day unless expressly stated otherwise. f. "Employee Relations Officer" means the District General Manager or his or her duly authorized representative. g. "Exclusively Recognized Employee Organization" means an employee organization that has been formally acknowledged by the District as the sole employee organization representing the employees in an appropriate representation unit pursuant to Article II hereof, having the exclusive right to meet and confer in good faith concerning statutorily required subjects pertaining to unit employees, and thereby assuming the corresponding obligation of fairly representing such employees. Such recognition status may only be challenged by another employee organization as set forth in section 6 of Article II of this Resolution. h. "Impasse" means that the representatives of the District and a Recognized Employee Organization have reached a point in their meeting and conferring in good faith where their differences on matters to be included in a Memorandum of Understanding, and about which they are required to meet and confer, remain so substantial and prolonged that further meeting and conferring would be futile. i. "Management Employee" means an employee having responsibility for formulating, administering or managing the implementation of District policies and programs and/or an employee who exercises Supervisory Authority. j. "Proof of Employee Support" means: 1) an authorization card recently signed and personally dated by an employee, provided that the card has not been subsequently revoked in writing by the employee prior to its submission, 2) a verified authorization petition or petitions recently signed and personally dated by an employee or 3) employee dues deduction authorization, using the payroll register for the period immediately prior to the date a petition is filed hereunder, except that dues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as proof of employee support for any employee organization. The only authorization which shall be considered as proof of employee support hereunder shall be the authorization last signed by an employee. The words "recently signed" shall mean within ninety (90) days prior to the filing of a petition. k. "Supervisory Authority" means authority, in the interest of the District, to hire, transfer, suspend, lay off, recall, promote, Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 4 discharge, assign, reward or discipline other employees, or responsibly to direct them, or to adjust their grievances or effectively to recommend such action if, in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature but requires the use of independent judgment. l. Terms not defined herein shall have the meanings as set forth in the Meyers-Milias-Brown Act. Article II. Representation Proceedings Section 1. Filing of Recognition Petition by Employee Organization An employee organization which seeks to be formally acknowledged as an Exclusively Recognized Employee Organization representing the employees in an appropriate unit shall file a petition with the Employee Relations Officer containing the following information and documentation: a. Name and address of the employee organization. b. Names and titles of its officers. c. Names of employee organization representatives who are authorized to speak on behalf of the organization. d. A statement that the employee organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the District. e. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner with, a local, regional, state, national or international organization and, if so, the name and address of each such other organization. f. Certified copies of the employee organization's constitution and bylaws. g. A designation of those persons, not exceeding two in number, and their addresses, to whom notice sent by regular United States mail will be deemed sufficient notice on the employee organization for any purpose. h. A statement that the employee organization has no restriction on membership based on race, color, religion, creed, sex, national origin, age, sexual orientation, mental or physical disability or medical condition. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 5 i. The job classifications or position titles of employees in the unit claimed to be appropriate and the approximate number of member employees therein. j. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the District. Such written proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party. k. A request that the Employee Relations Officer formally acknowledge the petitioner as the Exclusively Recognized Employee Organization representing the employees in the unit claimed to be appropriate for the purpose of meeting and conferring in good faith. The Petition, including the proof of employee support and all accompanying documentation, shall be declared to be true, correct and complete, under penalty of perjury, by the duly authorized officer(s) of the employee organization. Section 2. District Response to Recognition Petition Upon receipt of the Petition, the Employee Relations Officer shall determine whether: a. There has been compliance with the requirements of the Recognition Petition, and b. The proposed representation unit is an appropriate unit in accordance with Section 7 of this Article II. If an affirmative determination is made by the Employee Relations Officer on the foregoing two matters, he/she shall so inform the petitioning employee organization, shall give written notice of such request for recognition to the employees in the unit and shall take no action on said request for thirty (30) days thereafter. If either of the foregoing matters are not affirmatively determined, the Employee Relations Officer shall offer to consult thereon with such petitioning employee organization and, if such determination thereafter remains unchanged, shall inform that organization of the reasons therefore in writing. The petitioning employee organization may appeal such determination in accordance with Section 10 of Article II of this Resolution. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 6 Section 3. Open Period for Filing Challenging Petition Within thirty (30) days of the date written notice was given to affected employees that a valid recognition petition for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the exclusively recognized employee organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some but not all the classifications or positions set forth in the recognition petition being challenged) by filing a petition evidencing proof of employee support in the unit claimed to be appropriate of at least thirty (30) percent and otherwise in the same form and manner as set forth in Section 1 of this Article II. If such challenging petition seeks establishment of an overlapping unit, the Employee Relations Officer shall call for a hearing on such overlapping petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. Thereafter, the Employee Relations Officer shall determine the appropriate unit or units in accordance with the standards in Section 6 of this Article II. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination is communicated to them by the Employee Relations Officer to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 10 of this Article II. Section 4. Granting Recognition Without an Election If the Petition is in order, and the proof of support shows that a majority of the employees in the appropriate unit have designated the petitioning employee organization to represent them, and if no other employee organization filed a challenging petition, the petitioning employee organization and the Employee Relations Officer shall request the California State Mediation and Conciliation Service, or another mutually agreed upon neutral third party, to review the count, form, accuracy and propriety of the proof of support. If the neutral third party makes an affirmative determination, the Employee Relations Officer shall formally acknowledge the petitioning employee organization as the Exclusive Recognized Employee Organization for the designated unit. Section 5. Election Procedure Where recognition is not granted pursuant to Section 4 of Article II, the Employee Relations Officer shall arrange for a secret ballot election to be conducted by a party agreed to by the Employee Relations Officer and the concerned employee organization(s), in accordance with such party's rules and procedures subject to the provisions of this Resolution. All employee organizations that have duly submitted petitions, which have been determined to be in conformance with this Article II shall be included Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 7 on the ballot. The ballot shall also reserve to employees the choice of representing themselves individually in their employment relations with the District. Employees entitled to vote in such election shall be those persons employed in regular permanent positions within the designated appropriate unit who were employed during the pay period immediately prior to the date ending at least fifteen (15) days before the date the election commences, including those who did not work during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the District in the same unit on the date of the election. An employee organization shall be formally acknowledged as the Exclusively Recognized Employee Organization for the designated appropriate unit following an election or run-off election if it received a numerical majority of all valid votes cast in the election. In an election involving three or more choices where none of the choices receives a majority of the valid votes cast, a run-off election shall be conducted between the two choices receiving the largest number of valid votes cast with the rules governing an initial election being applicable to a run-off election. There shall be no more than one valid election under this Resolution pursuant to any petition in a 12-month period affecting the same unit. In the event that the parties are unable to agree on a third party to conduct an election, the election shall be conducted by the California State Mediation and Conciliation Service (CSMCS). If the parties cannot agree as to the time, place, and manner of the election, the parties shall authorize CSMCS and its election supervisor to unilaterally determine such issues and carry out the election accordingly. In the event that CSMCS declines to conduct the election, for any reason, the parties agree that the election shall be conducted by the American Arbitration Association or, alternatively, another neutral third party appointed by the District. If, once the alternate election monitor is appointed, the parties cannot agree as to the time, place, and manner of the election, the parties shall authorize the election monitor to unilaterally determine such issues and carry out the election accordingly. Costs of conducting elections shall be borne in equal shares by the District and by each employee organization appearing on the ballot. Section 6. Procedure for Decertification of Exclusively Recognized Employee Organization A Decertification Petition alleging that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit may be filed with the Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 8 Employee Relations Officer only during the month of March of any year following the first full year of recognition or during the first thirty (30) day period commencing one hundred twenty (120) days prior to the termination date of a Memorandum of Understanding then having been in effect less than three (3) years. A Decertification Petition may be filed by two or more employees or their representative or an employee organization and shall contain the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct and complete: a. The name, address and telephone number of the petitioner and a designated representative authorized to receive notices or requests for further information. b. The name of the established appropriate unit and of the incumbent Exclusively Recognized Employee Organization sought to be decertified as a representative of that unit. c. An allegation that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit and any other relevant and material facts relating thereto. d. Proof of employee support that at least thirty (30) percent of the employees in the established appropriate unit no longer desire to be represented by the incumbent Exclusively Recognized Employee Organization. Such proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party within the time limits specified in the first paragraph of this Section. An employee organization may, in satisfaction of the Decertification Petition requirements hereunder, file a Petition under this Section in the form of a Recognition Petition that evidences proof of employee support of at least thirty (30) percent, that includes the allegation and information required under paragraph (c.) of this Section 6 and otherwise conforms to the requirements of Section 1 of this Article II. The Employee Relations Officer shall initially determine whether the Petition has been filed in compliance with the applicable provisions of this Article II. If his/her determination is in the negative, he/she shall offer to consult thereon with the representative(s) of such petitioning employees or employee organization and, if such determination thereafter remains unchanged, shall return such Petition to the employees or employee organization with a statement of the reasons therefore in writing. The petitioning employees or employee organization may appeal such determination in accordance with Section 10 of this Article II. If the determination of the Employee Relations Officer is in the affirmative, or if Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 9 his/her negative determination is reversed on appeal, he/she shall give written notice of such Decertification or Recognition Petition to the incumbent Exclusively Recognized Employee Organization and to unit employees. The Employee Relations Officer shall thereupon arrange for a secret ballot election to be held on or about fifteen (15) days after such notice to determine the wishes of unit employees as to the question of decertification and, if a Recognition Petition was duly filed hereunder, the question of representation. Such election shall be conducted in conformance with Section 1 of this Article II. During the "open period" specified in the first paragraph of this Section 6, the Employee Relations Officer may on his/her own motion, when he/she has reason to believe that a majority of unit employees no longer wish to be represented by the incumbent Exclusively Recognized Employee Organization, give notice to that organization and all unit employees that he/she will arrange for an election to determine that issue. In such event, any other employee organization may within fifteen (15) days of such notice file a Recognition Petition in accordance with this Section 6, which the Employee Relations Officer shall act on in accordance with this Section 6. If, pursuant to this Section 6, a different employee organization is formally acknowledged as the Exclusively Recognized Employee Organization, such organization shall be bound by all the terms and conditions of any Memorandum of Understanding then in effect for its remaining term. Section 7. Policy and Standards for Determination of Appropriate Units The policy objectives in determining the appropriateness of units shall be the effect of a proposed unit on: 1) the efficient operations of the District and its compatibility with the primary responsibility of the District and its employees to effectively and economically serve the public, and 2) providing employees with effective representation based on recognized community of interest considerations. These policy objectives require that the appropriate unit shall be the broadest feasible grouping of positions that share an identifiable community of interest. Factors to be considered shall be: a. Similarity of the general kinds of work performed, types of qualifications required and the general working conditions. b. History of representation in the District and similar employment; except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 10 c. Consistency with the organizational patterns of the District. d. Effect of differing legally mandated impasse resolution procedures. e. Number of employees and classifications and the effect on the administration of employer-employee relations created by the separation of classifications and creation of multiple units. f. Effect on the classification structure and impact on the stability of the employer-employee relationship of dividing a single or related classifications among two or more units. Notwithstanding the foregoing provisions of this Section, managerial, and confidential responsibilities, as defined in Sec. 2 of Article I of this Resolution, are determining factors in establishing appropriate units hereunder, and therefore managerial employees and professional and confidential employees may only be included in a unit consisting solely of managerial employees or professional and confidential employees respectively. Managerial employees and professional and confidential employees may not represent any employee organization which represents other employees. The Employee Relations Officer shall, after notice to and consultation with affected employee organizations, allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete modified classifications or positions from units in accordance with the provisions of this Section. The decision of the Employee Relations Officer shall be final. Section 8. Procedure for Modification of Established Appropriate Units Requests by employee organizations for modifications of established appropriate units may be considered by the Employee Relations Officer only during the period specified in Section 6 of this Article II. Such requests shall be submitted in the form of a Recognition Petition and, in addition to the requirements set forth in Section 1 of this Article II, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and standards set forth in Section 7 hereof. The Employee Relations Officer shall process such petitions as other Recognition Petitions under this Article II. The Employee Relations Officer may by his/her own motion propose that an established unit be modified. The Employee Relations Officer shall give written notice of the proposed modification(s) to any affected employee organization and shall hold a meeting concerning the proposed modification(s), at which time all affected employee organizations shall be heard. Thereafter the Employee Relations Officer shall determine the Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 11 composition of the appropriate unit or units in accordance with Section 7 of this Article II, and shall give written notice of such determination to the affected employee organizations. The Employee Relations Officer's determination may be appealed as provided in Section 10 of this Article. If a unit is modified pursuant to the motion of the Employee Relations Officer hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Exclusively Recognized Employee Organization for such new appropriate unit or units pursuant to Section 1 of Article II. Section 9. Procedure for Processing Severance Requests An employee organization may file a request to become the recognized employee organization of a unit alleged to be appropriate that consists of a group of employees who are already a part of a larger established unit represented by another recognized employee organization. The timing, form and processing of such request shall be as specified in Section 8 of this Article II for modification requests. Section 10. Appeals An employee organization aggrieved by an appropriate unit determination of the Employee Relations Officer; or an employee organization aggrieved by a determination of the Employee Relations Officer that a Recognition Petition (Section 1 of Article II), Challenging Petition (Section 3 of Article II), Decertification Petition (Section 6 of Article II), Unit Modification Petition (Section 8 of Article II) --- or employees aggrieved by a determination of the Employee Relations Officer that a Decertification Petition (Section 6 of Article II) or Severance Request (Section 9 of Article II) ---has not been filed in compliance with the applicable provisions of this Article, may, within fifteen (15) days of notice of the Employee Relations Officer’s final decision, request to submit the matter to mediation by the State Mediation and Conciliation Service, or may, in lieu thereof or thereafter, appeal such determination to the District’s Board for final decision within fifteen (15) days of notice of the Employee Relations Officer’s determination or the termination of mediation proceedings, whichever is later. Appeals to the District’s Board shall be filed in writing with the Board’s Secretary, and a copy thereof served on the Employee Relations Officer. The District’s Board shall commence to consider the matter within thirty (30) days of the filing of the appeal. The District’s Board may, in its discretion, refer the dispute to a non-binding third party hearing process. Any decision of the Board on the use of such procedure, and/or any decision of the Board determining the substance of the dispute shall be final and binding. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 12 Article III. Administration Section 1. Submission of Current Information by Recognized Employee Organizations All changes in the information filed with the District by an Exclusively Recognized Employee Organization under items a. through h. of its Recognized Petition under Section 1 of Article II of this Resolution shall be submitted in writing to the Employee Relations Officer within fourteen (14) days of such change. Exclusively Recognized Employee Organizations that are party to an agency shop provision shall provide annually to the Employee Relations Officer and to unit members within 60 days after the end of its fiscal year the financial report required under Government Code Section 3502.5 (f) of the Meyers-Milias Brown Act. Section 2. Employee Organization Activities - Use of District Resources Access to District work locations and the use of District paid time, facilities, equipment and other resources by employee organizations and those representing them shall be authorized only to the extent provided for in Memoranda of Understanding and/or administrative procedures, shall be limited to lawful activities consistent with the provisions of this Resolution that pertain directly to the employer-employee relationship and not such internal employee organization business as soliciting membership, campaigning for office, and shall not interfere with the efficiency, safety and security of District operations. Section 3. Administrative Rules and Procedures The District General Manager is hereby authorized to establish such rules and procedures as appropriate to implement and administer the provisions of this Resolution after consultation (or meeting and conferring if required by law) with affected employee organizations. Article IV. Impasse Procedures Section 1. Initiation of Impasse Procedures: If the meet and confer process has reached impasse as defined in Section 2 of Article I of this Resolution, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall then be scheduled promptly by the Employee Relations Officer. The purpose of such meeting shall be: Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 13 a. To review the position of the parties in a final effort to reach agreement on a Memorandum of Understanding, and b. If the impasse is not resolved, to discuss arrangements for the utilization of the impasse procedures provided herein. Section 2. Impasse Procedures Impasse procedures are as follows: a. If the parties agree to submit the dispute to mediation, and agree on the selection of a mediator, the dispute shall be submitted to mediation. All mediation proceedings shall be private. The mediator shall make no public recommendation nor take any public position at any time concerning the issues. The mediation shall be conducted by the State Mediation and Conciliation Service. b. Otherwise, the parties can utilize any other impasse procedures provided in accordance with the Meyers-Milias-Brown Act. c. After any applicable impasse procedures have been exhausted, the Board of Directors may hold a public hearing regarding the impasse, and take such action regarding the impasse as it in its discretion deems appropriate as in the public interest, including implementation of the District’s last, best and final offer. Any legislative action by the Board on the impasse shall be final and binding. Section 3. Costs of Impasse Procedures The cost for the services of a mediator, and other mutually incurred costs of mediation, shall be borne equally by the District and Exclusively Recognized Employee Organization. Article V. Miscellaneous Provisions Section 1. Construction This Resolution shall be administered and construed as follows: a. Nothing in this Resolution shall be construed to deny to any person, employee, organization, the District, or any authorized officer, body or other representative of the District, the rights, powers and authority granted by federal or state law (or District Charter provisions). Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 14 b. This Resolution shall be interpreted so as to carry out its purpose as set forth in Article I. c. Nothing in this Resolution shall be construed as making the provisions of California Labor Code Section 923 applicable to District employees or employee organizations, or of giving employees or employee organizations the right to participate in, support, cooperate or encourage, directly or indirectly, any strike, sickout or other total or partial stoppage or slowdown of work. In consideration of and as a condition of initial and continued employment by the District, employees recognize that any such actions by them are in violation of their conditions of employment except as expressly otherwise provided by legally preemptive state or contrary local law. In the event employees engage in such actions, they shall subject themselves to discipline up to and including termination, and may be replaced, to the extent such actions are not prohibited by preemptive law; and employee organizations may thereby forfeit rights accorded them under District law or contract. Section 2. Severability If any provision of this Resolution, or the application of such provision to any persons or circumstances, shall be held invalid, the remainder of this Resolution, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. BE IT FURTHER RESOLVED THAT Resolution No. 09-11 is hereby rescinded. PASSED AND ADOPTED this 23rd day of January, 2018 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ______________________________ Al Nederhood, President Yorba Linda Water District Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 15 ATTEST: __________________________ Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: ______________________________ Andrew B. Gagen, Esq. Kidman Law LLP Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 1 1 8344257.3 YO030-031 LEGEND THIS COLOR – VIVIAN LIM THIS COLOR – ANNIE ALEXANDER THIS COLOR AND THIS COLOR – AMIT ZATZIR LCW THIS COLOR – LAURA KALTY LCW RESOLUTION NO. 18-0309-11 EMPLOYER-EMPLOYEE RELATIONS RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT REVISING THEIMPLEMENTING CHAPTER 10, DIVISION 4, TITLE 1 OF THE GOVERNMENT CODE, STATE OF CALIFORNIA, “LOCAL PUBLIC EMPLOYEE ORGANIZATIONS” PROCEDURES FOR ADMINISTRATION OF EMPLOYER-EMPLOYEE RELATIONS BETWEEN THE DISTRICT AND ITS RECOGNIZED EMPLOYEE ORGANIZATIONS AND RESCINDING RESOLUTION NO. 09-11 WHEREAS, the District previously implemented wishes to implement revise Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned “Local Public Employee Organizations” as adopted by Resolution No. 09-11; and WHEREAS, the District intends to continue strengthening methods of administering employer-employee relations through the establishment of uniform methods of communications between employees, employee organizations and the Yorba Linda Water District; t,and WHEREAS, it is the desire of the Board of Directors to adopt Resolution No. 18-03 reviseing the procedures for administration of employer-employee relations between the District and its recognized employee organizations. and rescinding Resolution No. 09-11. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District that the following provisions be implemented:o implement the following provisions. Article 1. General Provisions Section 1. : Statement of Purpose Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 2 1 8344257.3 YO030-031 This Resolution implements Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned "Local Public Employee Organizations," (the Meyers-Milias- Brown Act) by providing orderly procedures for the administration of employer-employee relations between the Yorba Linda Water District and its employee organizations. However, nothing contained herein shall be deemed to supersede the provisions of state law, ordinances, resolutions aand rules which establish and regulate the merit and civil service system, or which provide for other methods of administering employer-employee relations. This Resolution is intended, instead, to strengthen merit, civil service and other methods of administering employer-employee relations through the establishment of uniform and orderly methods of communications between employees, employee organizations and the Yorba Linda Water District. It is the purpose of this Resolution to provide procedures for meeting and conferring in good faith with Recognized Employee Organizations regarding matters that directly and significantly affect and primarily involve the wages, hours and other terms and conditions of employment of employees in appropriate units and that are not preempted by federal or state law, or by the laws governing and/or creating the Yorba Linda Water District. However, nothing herein shall be construed to restrict any legal or inherent exclusive Yorba Linda Water District rights with respect to matters of general legislative or managerial policy, which include among others: The exclusive right to determine the mission of its constituent departments, commissions, and boards; set standards of service; determine the procedures and standards of selection for employment; determine the rules and policies under which employment is to be managed; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other lawful reasons; determine the content of job classifications; subcontract work; maintain the efficiency of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. Section 2. Definitions As used in this Resolution, the following terms shall have the meanings indicated: a. “Appropriate unit” means a unit of employee classes or positions, established pursuant to Article II hereof. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 3 1 8344257.3 YO030-031 b. "District" means the Yorba Linda Water District, and, where appropriate herein, refers to the Board of Directors (“Board”) of the District or any duly authorized District representative as herein defined. c. "Confidential Employee" means an employee who, in the course of his or her duties, has access to confidential information relating to the District's administration of employer-employee relations. d. "Consult/Consultation in Good Faith” means to communicate orally or in writing with all effected recognized employee organizations for the purpose of presenting and obtaining views or advising of proposed actions in a good faith effort to reach a consensus; and, as distinguished from meeting and conferring in good faith regarding matters within the required scope of the meet and confer process, does not involve an exchange of proposals and counterproposals in an endeavor to reach agreement in the form of a Memorandum of Understanding, nor is it subject to Article IV hereof. e. "Day" means calendar day unless expressly stated otherwise. f. "Employee Relations Officer" means the District General Manager or his or her duly authorized representative. g. "Exclusively Recognized Employee Organization" means an employee organization that has been formally acknowledged by the District as the sole employee organization representing the employees in an appropriate representation unit pursuant to Article II hereof, having the exclusive right to meet and confer in good faith concerning statutorily required subjects pertaining to unit employees, and thereby assuming the corresponding obligation of fairly representing such employees. Such recognition status may not only be challenged by another employee organization: 1) within twelve (12) months of such recognition and 2) to take effect during a Memorandum of Understanding having a term of up to three (3) years as set forth in section 6 of Article II of this Resolution. h. "Impasse" means that the representatives of the District and a Recognized Employee Organization have reached a point in their Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 4 1 8344257.3 YO030-031 meeting and conferring in good faith where their differences on matters to be included in a Memorandum of Understanding, and about which they are required to meet and confer, remain so substantial and prolonged that further meeting and conferring would be futile. i. "Management Employee" means an employee having responsibility for formulating, administering or managing the implementation of District policies and programs and/or an employee who exercises Ssupervisory Aauthority. j. "Proof of Employee Support" means: 1) an authorization card recently signed and personally dated by an employee, provided that the card has not been subsequently revoked in writing by the employee prior to its submission, 2) a verified authorization petition or petitions recently signed and personally dated by an employee or 3) employee dues deduction authorization, using the payroll register for the period immediately prior to the date a petition is filed hereunder, except that dues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as proof of employee support for any employee organization. The only authorization which shall be considered as proof of employee support hereunder shall be the authorization last signed by an employee. The words "recently signed" shall mean within ninety (90) days prior to the filing of a petition. k. "Supervisory Authority" means any employee having authority, in the interest of the District, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward or discipline other employees, or responsibly to direct them, or to adjust their grievances or effectively to recommend such action if, in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature but requires the use of independent judgment. l. Terms not defined herein shall have the meanings as set forth in the Meyers-Milias-Brown Act. Article II. Representation Proceedings Section 1. Filing of Recognition Petition by Employee Organization An employee organization which seeks to be formally acknowledged as an Exclusively Recognized Employee Organization representing the employees in an appropriate unit shall file a petition with the Employee Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 5 1 8344257.3 YO030-031 Relations Officer containing the following information and documentation: a. Name and address of the employee organization. b. Names and titles of its officers. c. Names of employee organization representatives who are authorized to speak on behalf of the organization. d. A statement that the employee organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the District. e. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner with, a local, regional, state, national or international organization and, if so, the name and address of each such other organization. f. Certified copies of the employee organization's constitution and bylaws. g. A designation of those persons, not exceeding two in number, and their addresses, to whom notice sent by regular United States mail will be deemed sufficient notice on the employee organization for any purpose. h. A statement that the employee organization has no restriction on membership based on race, color, religion, creed, sex, national origin, age, sexual orientation, mental or physical disability or medical condition. i. The job classifications or position titles of employees in the unit claimed to be appropriate and the approximate number of member employees therein. j. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the District. Such written proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party. k. A request that the Employee Relations Officer formally executing it acknowledge the petitioner as the Exclusively Recognized Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 6 1 8344257.3 YO030-031 Employee Organization representing the employees in the unit claimed to be appropriate for the purpose of meeting and conferring in good faith. The Petition, including the proof of employee support and all accompanying documentation, shall be declared to be true, correct and complete, under penalty of perjury, by the duly authorized officer(s) of the employee organization. Section 2. District Response to Recognition Petition Upon receipt of the Petition, the Employee Relations Officer shall determine whether: a. There has been compliance with the requirements of the Recognition Petition, and b. The proposed representation unit is an appropriate unit in accordance with Section 7 of this Article II. If an affirmative determination is made by the Employee Relations Officer on the foregoing two matters, he/she shall so inform the petitioning employee organization, shall give written notice of such request for recognition to the employees in the unit and shall take no action on said request for thirty (30) days thereafter. If either of the foregoing matters are not affirmatively determined, the Employee Relations Officer shall offer to consult thereon with such petitioning employee organization and, if such determination thereafter remains unchanged, shall inform that organization of the reasons therefore in writing. The petitioning employee organization may appeal such determination in accordance with Section 10 of, Article II of this Resolution. Section 3. Open Period for Filing Challenging Petition Within thirty (30) days of the date written notice was given to affected employees that a valid recognition petition for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the exclusively recognized employee organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some but not all the classifications or positions set forth in the recognition petition being challenged) by filing a petition evidencing proof of employee support in the unit claimed to be appropriate of at least thirty (30) percent and otherwise in the same form and manner as set forth in Section 1 of this Article II. If such challenging Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 7 1 8344257.3 YO030-031 petition seeks establishment of an overlapping unit, the Employee Relations Officer shall call for a hearing on such overlapping petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. Thereafter, the Employee Relations Officer shall determine the appropriate unit or units in accordance with the standards in Section 6 of this Article II. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination is communicated to them by the Employee Relations Officer to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 10 of this Article II. Section 4. Granting Recognition Without an Election If the Petition is in order, and the proof of support shows that a majority of the employees in the appropriate unit have designated the petitioning employee organization to represent them, and if no other employee organization filed a challenging petition, the petitioning employee organization and the Employee Relations Officer shall request the California State Mediation and Conciliation Service, or another mutually agreed upon neutral third party, to review the count, form, accuracy and propriety of the proof of support. If the neutral third party makes an affirmative determination, the Employee Relations Officer shall formally acknowledge the petitioning employee organization as the Exclusive Recognized Employee Organization for the designated unit. Section 5. Election Procedure Where recognition is not granted, pursuant to Section 4 of, Article II, the Employee Relations Officer shall arrange for a secret ballot election to be conducted by a party agreed to by the Employee Relations Officer and the concerned employee organization(s), in accordance with such party's rules and procedures subject to the provisions of this Resolution. All employee organizations that have duly submitted petitions, which have been determined to be in conformance with this Article II, shall be included on the ballot. The ballot shall also reserve to employees the choice of representing themselves individually in their employment relations with the District. Employees entitled to vote in such election shall be those persons employed in regular permanent positions within the designated appropriate unit who were employed during the pay period immediately prior to the date ending at least fifteen (15) days before the date the election commences, including those who did not work during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the District in the same unit on the date of the election. An employee organization shall be formally acknowledged as the Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 8 1 8344257.3 YO030-031 Exclusively Recognized Employee Organization for the designated appropriate unit following an election or run-off election if it received a numerical majority of all valid votes cast in the election. In an election involving three or more choices where none of the choices receives a majority of the valid votes cast, a run-off election shall be conducted between the two choices receiving the largest number of valid votes cast with the rules governing an initial election being applicable to a run-off election. There shall be no more than one valid election under this Resolution pursuant to any petition in a 12-month period affecting the same unit. In the event that the parties are unable to agree on a third party to conduct an election, the election shall be conducted by the California State Mediation and Conciliation Service (CSMCS). If the parties cannot agree as to the time, place, and manner of the election, the parties shall authorize CSMCS and its election supervisor to unilaterally determine such issues and carry out the election accordingly. In the event that CSMCS declines to conduct the election, for any reason, the parties agree that the election shall be conducted by the American Arbitration Association or, alternatively, another neutral third party appointed by the District. If, once the alternate election monitor is appointed, the parties cannot agree as to the time, place, and manner of the election, the parties shall authorize the election monitor to unilaterally determine such issues and carry out the election accordingly. Costs of conducting elections shall be borne in equal shares by the District and by each employee organization appearing on the ballot. Section 6. Procedure for Decertification of Exclusively Recognized Employee Organization A Decertification Petition alleging that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit may be filed with the Employee Relations Officer only during the month of March of any year following the first full year of recognition or during the first thirty (30) day period commencing one hundred twenty (120) days prior to the termination date of a Memorandum of Understanding then having been in effect less than three (3) years. A Decertification Petition may be filed by two or more employees or their representative or an employee organization and shall contain the following information and documentation declared by the duly authorized signatory under penalty of Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 9 1 8344257.3 YO030-031 perjury to be true, correct and complete: a. The name, address and telephone number of the petitioner and a designated representative authorized to receive notices or requests for further information. b. The name of the established appropriate unit and of the incumbent Exclusively Recognized Employee Organization sought to be decertified as a representative of that unit. c. An allegation that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit and any other relevant and material facts relating thereto. d. Proof of employee support that at least thirty (30) percent of the employees in the established appropriate unit no longer desire to be represented by the incumbent Exclusively Recognized Employee Organization. Such proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party within the time limits specified in the first paragraph of this Section. An employee organization may, in satisfaction of the Decertification Petition requirements hereunder, file a Petition under this Section in the form of a Recognition Petition that evidences proof of employee support of at least thirty (30) percent, that includes the allegation and information required under paragraph (c.) of this Section 6 and otherwise conforms to the requirements of Section 1 of this Article II. The Employee Relations Officer shall initially determine whether the Petition has been filed in compliance with the applicable provisions of this Article II. If his/her determination is in the negative, he/she shall offer to consult thereon with the representative(s) of such petitioning employees or employee organization and, if such determination thereafter remains unchanged, shall return such Petition to the employees or employee organization with a statement of the reasons therefore in writing. The petitioning employees or employee organization may appeal such determination in accordance with Section 10 of this Article II. If the determination of the Employee Relations Officer is in the affirmative, or if his/her negative determination is reversed on appeal, he/she shall give written notice of such Decertification or Recognition Petition to the incumbent Exclusively Recognized Employee Organization and to unit employees. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 10 1 8344257.3 YO030-031 The Employee Relations Officer shall thereupon arrange for a secret ballot election to be held on or about fifteen (15) days after such notice to determine the wishes of unit employees as to the question of decertification and, if a Recognition Petition was duly filed hereunder, the question of representation. Such election shall be conducted in conformance with Section 1 of this Article II. During the "open period" specified in the first paragraph of this Section 6, the Employee Relations Officer may on his/her own motion, when he/she has reason to believe that a majority of unit employees no longer wish to be represented by the incumbent Exclusively Recognized Employee Organization, give notice to that organization and all unit employees that he/she will arrange for an election to determine that issue. In such event, any other employee organization may within fifteen (15) days of such notice file a Recognition Petition in accordance with this Section 6, which the Employee Relations Officer shall act on in accordance with this Section 6. If, pursuant to this Section 6, a different employee organization is formally acknowledged as the Exclusively Recognized Employee Organization, such organization shall be bound by all the terms and conditions of any Memorandum of Understanding then in effect for its remaining term. Section 7. Policy and Standards for Determination of Appropriate Units The policy objectives in determining the appropriateness of units shall be the effect of a proposed unit on: 1) the efficient operations of the District and its compatibility with the primary responsibility of the District and its employees to effectively and economically serve the public, and 2) providing employees with effective representation based on recognized community of interest considerations. These policy objectives require that the appropriate unit shall be the broadest feasible grouping of positions that share an identifiable community of interest. Factors to be considered shall be: a. Similarity of the general kinds of work performed, types of qualifications required and the general working conditions. b. History of representation in the District and similar employment; except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized. c. Consistency with the organizational patterns of the District. Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 11 1 8344257.3 YO030-031 d. Effect of differing legally mandated impasse resolution procedures. e. Number of employees and classifications and the effect on the administration of employer-employee relations created by the separation of classifications and creation of multiple units. f. Effect on the classification structure and impact on the stability of the employer-employee relationship of dividing a single or related classifications among two or more units. Notwithstanding the foregoing provisions of this Section, managerial, and confidential responsibilities, as defined in Sec. 2 of Article I of this Resolution, are determining factors in establishing appropriate units hereunder, and therefore managerial, employees and professional and confidential employees may only be included in a unit consisting solely of managerial, employees or professional and confidential employees respectively. Managerial, employees and professional and confidential employees may not represent any employee organization which represents other employees. The Employee Relations Officer shall, after notice to and consultation with affected employee organizations, allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete modified classifications or positions from units in accordance with the provisions of this Section. The decision of the Employee Relations Officer shall be final. Section 8. Procedure for Modification of Established Appropriate Units Requests by employee organizations for modifications of established appropriate units may be considered by the Employee Relations Officer only during the period specified in Section 6 of this Article II. Such requests shall be submitted in the form of a Recognition Petition and, in addition to the requirements set forth in Section 1 of this Article II, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and standards set forth in Section 7 hereof. The Employee Relations Officer shall process such petitions as other Recognition Petitions under this Article II. The Employee Relations Officer may by his/her own motion propose that an established unit be modified. The Employee Relations Officer shall give written notice of the proposed modification(s) to any affected employee organization and shall hold a meeting concerning the proposed modification(s), at which time all affected employee organizations shall be Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 12 1 8344257.3 YO030-031 heard. Thereafter the Employee Relations Officer shall determine the composition of the appropriate unit or units in accordance with Section 7 of this Article II, and shall give written notice of such determination to the affected employee organizations. The Employee Relations Officer's determination may be appealed as provided in Section 10 of this Article. If a unit is modified pursuant to the motion of the Employee Relations Officer hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Exclusively Recognized Employee Organization for such new appropriate unit or units pursuant to Section 1 of Article II. Section 9. Procedure for Processing Severance Requests An employee organization may file a request to become the recognized employee organization of a unit alleged to be appropriate that consists of a group of employees who are already a part of a larger established unit represented by another recognized employee organization. The timing, form and processing of such request shall be as specified in Section 8 of this Article II for modification requests. Section 10. Appeals An employee organization aggrieved by an appropriate unit determination of the Employee Relations Officer; or an employee organization aggrieved by a determination of the Employee Relations Officer that a Recognition Petition (Section 1 of, Article II), Challenging Petition (Section 3 of, Article II), Decertification Petition (Section 6 of, Article II), Unit Modification Petition (Section 8 of, Article II) --- or employees aggrieved by a determination of the Employee Relations Officer that a Decertification Petition (Section 6 of, Article II) or Severance Request (Section 9 of, Article II) ---has not been filed in compliance with the applicable provisions of this Article, may, within fifteen (15) days of notice of the Employee Relations Officer’s final decision, request to submit the matter to mediation by the State Mediation and Conciliation Service, or may, in lieu thereof or thereafter, appeal such determination to the District’s Board for final decision within fifteen (15) days of notice of the Employee Relations Officer’s determination or the termination of mediation proceedings, whichever is later. Appeals to the District’s Board shall be filed in writing with the Board’s Secretary, and a copy thereof served on the Employee Relations Officer. The District’s Board shall commence to consider the matter within thirty (30) days of the filing of the appeal. The District’s Board may, in its discretion, refer the dispute to a non-binding third party hearing process. Any decision of the Board on the use of such procedure, and/or any Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 13 1 8344257.3 YO030-031 decision of the Board determining the substance of the dispute shall be final and binding. Article III. Administration Section 1. Submission of Current Information by Recognized Employee Organizations All changes in the information filed with the District by an Exclusively Recognized Employee Organization under items a. through h. of its Recognized Petition under Section 1, of Article II of this Resolution shall be submitted in writing to the Employee Relations Officer within fourteen (14) days of such change. Exclusively Recognized Employee Organizations that are party to an agency shop provision shall provide annually to the Employee Relations Officer and to unit members within 60 days after the end of its fiscal year the financial report required under Government Code Section 3502.5 (f) of the Meyers-Milias Brown Act. Section 2. Employee Organization Activities - Use of District Resources Access to District work locations and the use of District paid time, facilities, equipment and other resources by employee organizations and those representing them shall be authorized only to the extent provided for in Memoranda of Understanding and/or administrative procedures, shall be limited to lawful activities consistent with the provisions of this Resolution that pertain directly to the employer-employee relationship and not such internal employee organization business as soliciting membership, campaigning for office, and shall not interfere with the efficiency, safety and security of District operations. Section 3. Administrative Rules and Procedures The District General Manager is hereby authorized to establish such rules and procedures as appropriate to implement and administer the provisions of this Resolution after consultation (or meeting and conferring as if required by law) with affected employee organizations. Article IV. Impasse Procedures Section 1. Initiation of Impasse Procedures: If the meet and confer process has reached impasse as defined in Section Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 14 1 8344257.3 YO030-031 2 of, Article I of this Resolution, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall then be scheduled promptly by the Employee Relations Officer. The purpose of such meeting shall be: a. To review the position of the parties in a final effort to reach agreement on a Memorandum of Understanding, and b. If the impasse is not resolved, to discuss arrangements for the utilization of the impasse procedures provided herein. Section 2. Impasse Procedures Impasse procedures are as follows: a. Either party may propose that the impasse be submitted to mediationIf the parties agree to submit the dispute to mediation, and agree on the selection of a mediator, the dispute shall be submitted to mediation. All mediation proceedings shall be private. The mediator shall make no public recommendation nor take any public position at any time concerning the issues. The mediation shall be conducted by the State Mediation and Conciliation Service. a.b. Otherwise, the parties can utilize any other impasse procedures provided in accordance with the Meyers-Milias-Brown Act. bc. After any applicable impasse procedures have been exhausted, the Board of Directors may hold a public hearing regarding the impasse, and take such action regarding the impasse as it in its discretion deems appropriate as in the public interest, including implementation of the District’s last, best and final offer. Any legislative action by the Board on the impasse shall be final and binding.If the parties fail to resolve the dispute through mediation the parties shall submit the impasse to the Board of Directors for the Board’s determination, which shall be final and conclusive. Section 3. Costs of Impasse Procedures The cost for the services of a mediator, and other mutually incurred costs of mediation, shall be borne equally by the District and Exclusively Recognized Employee Organization. Article V. Miscellaneous Provisions Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 15 1 8344257.3 YO030-031 Section 1. Construction This Resolution shall be administered and construed as follows: a. Nothing in this Resolution shall be construed to deny to any person, employee, organization, the District, or any authorized officer, body or other representative of the District, the rights, powers and authority granted by federal or state law (or District Charter provisions). b. This Resolution shall be interpreted so as to carry out its purpose as set forth in Article I. c. Nothing in this Resolution shall be construed as making the provisions of California Labor Code Section 923 applicable to District employees or employee organizations, or of giving employees or employee organizations the right to participate in, support, cooperate or encourage, directly or indirectly, any strike, sickout or other total or partial stoppage or slowdown of work. In consideration of and as a condition of initial and continued employment by the District, employees recognize that any such actions by them are in violation of their conditions of employment except as expressly otherwise provided by legally preemptive state or contrary local law. In the event employees engage in such actions, they shall subject themselves to discipline up to and including termination, and may be replaced, to the extent such actions are not prohibited by preemptive law; and employee organizations may thereby forfeit rights accorded them under District law or contract. Section 2. Severability If any provision of this Resolution, or the application of such provision to any persons or circumstances, shall be held invalid, the remainder of this Resolution, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. BE IT FURTHER RESOLVED THAT Resolution No. 09-11 is hereby rescinded. PASSED AND ADOPTED this 23rd9th day of January, 2009 2018 by the following called vvote: Resolution No. 18-03 Revising Procedures for Administration of Employer-Employee Relations 16 1 8344257.3 YO030-031 AYES: NOES: ABSENT: ABSTAIN: ABSENT: ______________________________ John W. SummerfieldAl Nederhood, President Yorba Linda Water District ATTEST: __________________________ Marc MarcantonioAnnie AlexanderKenneth R. Vecchiarelli, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: ______________________________ Andrew B. GagenArthur G. Kidman, Esq. Kidman Law LLP ITEM NO. 9.1 AGENDA REPORT Meeting Date: January 23, 2018 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 December 31, 2017 DISCUSSION: For the month ending December 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 December 31, 2017, reflects an average rebound of 8.35% as compared to the prior year for the same reporting period. Residential classified customer connections continue to experience the largest rebound in monthly consumption as conservation restrictions were lifted compared to the prior year. Total Variable Costs results reflect at 14.01% 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 13.31% ahead of budget. While Supplies & Services within the Water Department have decreased by 2.77%, to the prior year. 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: Budget_to_Actual_Rpt_Dec_17.pdf Backup Material Backup Material FY18 Annual Budget YTD Actuals thru December 2017 YTD % of Budget Water Revenue (Residential)14,278,688$ 8,990,345$ 62.96% Water Revenue (Commercial & Fire Det.)2,071,031$ 1,051,085$ 50.75% Water Revenue (Landscape/Irrigation)3,079,054$ 2,369,566$ 76.96% Service Charges 10,106,238$ 4,998,570$ 49.46% Other Operating Revenue 769,106$ 399,992$ 52.01% Total Operating Revenue 30,304,117$ 17,809,558$ 58.77% Revenue (Non-Operating): Interest 275,000$ 189,675$ 68.97% Property Taxes 1,710,000$ 935,723$ 54.72% Other Non-Operating Revenue 604,646$ 205,658$ 34.01% Total Non-Operating Revenue 2,589,646$ 1,331,056$ 51.40% Total Revenue 32,893,763$ 19,140,614$ 58.19% Expenses (Operating): Variable Water Costs (G.W., Import & Power) Water-Related Costs 11,240,088$ 7,352,454$ 65.41% Fixed Costs 1,443,355$ 436,555$ 30.25% Power-Related Costs 1,285,413$ 539,537$ 41.97% Variable Water Costs Related Expenses Total 13,968,855$ 8,328,545$ 59.62% Salary Related Expenses 8,859,867$ 4,263,304$ 48.12% Reduction for Capital Project Labor (215,000)$ (127,824)$ 59.45% Salary Related Expenses Total 8,644,867$ 4,135,480$ 47.84% Supplies & Services Communications 189,565$ 68,074$ 35.91% Contractual Services 519,653$ 201,837$ 38.84% Data Processing 235,322$ 102,409$ 43.52% Dues & Memberships 80,492$ 66,799$ 82.99% Fees & Permits 264,641$ 127,292$ 48.10% Insurance 263,506$ 122,775$ 46.59% Materials 797,347$ 360,103$ 45.16% District Activities, Emp Recognition 22,506$ 9,347$ 41.53% Maintenance 339,342$ 188,544$ 55.56% Non-Capital Equipment 104,678$ 55,402$ 52.93% Office Expense 39,662$ 17,189$ 43.34% Professional Services 650,108$ 252,294$ 38.81% Training 61,728$ 10,677$ 17.30% Travel & Conferences 102,493$ 26,638$ 25.99% Uncollectible Accounts 17,205$ 409$ 2.38% Utilities 158,100$ 90,309$ 57.12% Vehicle Expenses 286,812$ 130,947$ 45.66% Supplies & Services Sub-Total 4,133,160$ 1,831,045$ 44.30% Total Operating Expenses 26,746,883$ 14,295,070$ 53.45% Expenses (Non-Operating) Other Expense 15,220$ (2,091)$ -13.74% Total Non-Operating Expenses 15,220$ (2,091)$ -13.74% Total Expenses 26,762,103$ 14,292,979$ 53.41% Net Revenues 6,131,660$ 4,847,635$ 79.06% Less: Debt Service (Principal & Interest)2,729,799$ 1,919,271$ 70.31% Less: Committed Capital Expenditures (PayGo)2,635,755$ 853,937$ 32.40% Less: Special Item - Conservation Credit 1,105,809$ Less: Special Item - Rate Credit -$ 1,098,574$ 0.00% Transfer to/(from) Reserves 766,107$ (129,956)$ -16.96% Net -$ -$ Yorba Linda Water District Water Enterprise FY18 ProForma - Use of Funds December 2017 1 Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Period Ending December 31, 2017 Annual YTD Dec YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Dec. Actual Actual (thru vs vs FY18 FY18 FY18 FY18 YTD Budget FY17 Dec. 2016)PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)$14,278,688 $7,744,760 $1,209,970 $8,990,345 1,245,585 $973,388 $8,055,017 $935,328 11.61% Water Revenue (Commercial & Fire Det.)2,071,031 1,123,327 146,722 $1,051,085 (72,242)133,091 1,001,429 49,657 4.96% Water Revenue (Landscape/Irrigation)3,079,054 1,670,079 276,558 $2,369,566 699,487 190,037 2,182,677 186,889 8.56% Water Revenue (Service Charge)10,106,238 5,053,119 833,154 $4,998,570 (54,549)828,839 5,138,936 (140,366)-2.73% Sewer Charge Revenue 2,032,245 1,016,123 171,023 $1,030,471 14,348 155,623 940,587 89,884 9.56% Locke Ranch Assessments 223,000 117,320 86,566 $128,382 11,063 94,317 114,267 14,115 0.00% Other Operating Revenue 866,161 433,081 50,075 $428,045 (5,036)58,910 503,008 (74,964)-14.90% Total Operating Revenue:32,656,417 17,157,808 2,774,068 $18,996,464 1,838,656 2,434,205 17,935,921 1,060,543 5.91% Revenue (Non-Operating): Interest 310,000 155,000 33,181 211,781 56,781 23,367 151,498 60,283 39.79% Property Tax 1,710,000 899,631 583,879 935,723 36,092 670,499 876,370 59,354 0.00% Other Non-Operating Revenue 624,521 312,260 19,701 197,763 (114,498)13,733 132,789 64,974 48.93% Total Non-Operating Revenue:2,644,521 1,366,891 636,761 1,345,267 (21,624)707,599 1,160,657 184,610 15.91% Total Revenue 35,300,938 18,524,699 3,410,829 20,341,731 1,817,031 3,141,804 19,096,578 1,245,153 6.52% Expenses (Operating): Variable Water Costs (G.W., Import & Power)13,968,855 7,564,141 1,520,066 8,328,545 764,404 1,046,811 7,305,095 1,023,450 14.01% Salary Related Expenses 9,643,124 4,549,816 973,528 4,643,771 93,956 924,355 4,572,385 71,387 1.56% Supplies & Services 4,621,895 2,065,447 348,379 2,048,746 (16,702)396,820 2,055,282 (6,537) -0.32% Total Operating Expenses 28,233,874 14,179,404 2,841,973 15,021,062 841,658 2,367,986 13,932,762 1,088,301 7.81% Expenses (Non-Operating): Interest on Long Term Debt 1,489,796 949,447 115,401 679,746 (269,701) 130,618 815,734 (135,989) -16.67% Other Expense 15,220 110 (24,108) (11,566) (11,676)(1,232) 9,517 (21,083) -221.53% Total Non-Operating Expenses:1,505,016 949,557 91,293 668,180 (281,377) 129,386 825,251 (157,072) -19.03% Total Expenses 29,738,890 15,128,961 2,933,266 15,689,242 560,281 2,497,372 14,758,013 931,229 6.31% Net Position Before Capital Contributions 5,562,048 3,395,739 477,563 4,652,489 1,256,750 644,432 4,338,565 313,924 7.24% Special Item - 1,098,574 2,204,383 2,204,383 - - 2,204,383 0.00% Capital Contributions (Non-Cash Transaction -- - 440,855 2,230,763 2,230,763 - 674,990 1,555,773 0.00% GASB 34 Compliant) Net Position Before Depreciation 5,562,048 3,395,739 (180,156) 4,678,868 1,283,129 644,432 5,013,555 (334,687)-6.68% Depreciation & Amortization 7,182,000 3,591,000 618,637 3,711,808 120,808 594,879 3,562,030 149,778 4.20% Total Net Position ($1,619,952)($195,261)($798,793)967,060 $1,162,322 $49,553 $1,451,525 ($484,464)-33.38% (31,521)(138,364)(138,364) (23,274)(122,370) (15,994) 13.07% (With December 31, 2016 for comparison purposes) 2 Annual YTD Dec YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Dec. Actual Actual (thru vs vs FY18 FY18 FY18 FY18 YTD Budget FY17 Dec 2016) PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)$14,278,688 $7,744,760 1,209,970$ 8,990,345$ 1,245,585$ $973,388 $8,055,017 $935,328 11.61% Water Revenue (Commercial & Fire Det.)2,071,031 $1,123,327 146,722 1,051,085 (72,242) 133,091 1,001,429 49,656 4.96% Water Revenue (Landscape/Irrigation)3,079,054 $1,670,079 276,558 2,369,566 699,487 190,037 2,182,677 186,889 8.56% Water Revenue (Service Charge)10,106,238 5,053,119 833,154 4,998,570 (54,549) 828,839 5,138,936 (140,366) -2.73% Other Operating Revenue 769,106 384,553 45,700 399,992 15,439 45,494 443,720 (43,728) -9.85% Total Operating Revenue:30,304,117 15,975,838 2,512,104 17,809,558 1,833,720 2,170,849 16,821,779 987,779 5.87% Revenue (Non-Operating): Interest 275,000 137,500 30,408 189,675 52,175 21,480 137,323 52,352 38.12% Property Tax 1,710,000 899,631 583,879 935,723 36,092 670,499 876,370 59,353 6.77% Other Non-Operating Revenue 604,646 302,323 21,868 205,658 (96,665) 13,860 82,883 122,775 148.13% Total Non-Operating Revenue:2,589,646 1,339,454 636,155 1,331,056 (8,398) 705,839 1,096,576 234,480 21.38% Total Revenue 32,893,763 17,315,292 3,148,259 19,140,614 1,825,321 2,876,688 17,918,355 1,222,259 6.82% Expenses (Operating): Variable Water Costs (G.W., Import & Power)13,968,855 7,564,142 1,520,066 8,328,545 764,404 1,046,811 7,305,095 1,023,450 14.01% Salary Related Expenses 8,644,867 4,069,709 878,844 4,135,480 65,771 819,146 4,082,877 52,603 1.29% Supplies & Services: Communications 189,565 71,283 7,401 68,074 (3,209) 9,261 95,162 (27,088) -28.47% Contractual Services 519,653 204,827 44,060 201,837 (2,989) 48,163 205,810 (3,973) -1.93% Data Processing 235,322 104,161 40,224 102,409 (1,752) 35,131 104,264 (1,855) -1.78% Dues & Memberships 80,492 66,246 894 66,799 553 8,722 71,836 (5,036) -7.01% Fees & Permits 264,641 127,821 61,782 127,292 (529) 6,012 79,865 47,427 59.38% Board Election - - - - - - 72,539 (72,539) -100.00% Insurance 263,506 124,253 21,516 122,775 (1,478) 19,994 120,345 2,430 2.02% Materials 797,347 363,674 51,379 360,103 (3,570) 89,143 443,405 (83,302) -18.79% District Activities, Emp Recognition 22,506 11,253 890 9,347 (1,906) 670 5,060 4,287 84.74% Maintenance 339,342 169,671 3,198 188,544 18,873 46,933 149,140 39,404 26.42% Non-Capital Equipment 104,678 52,339 13,100 55,402 3,063 13,951 55,290 111 0.20% Office Expense 39,662 19,831 3,561 17,189 (2,642) 4,923 15,921 1,268 7.97% Professional Services 650,108 255,054 35,571 252,294 (2,760) 18,271 207,391 44,903 21.65% Training 61,728 13,364 1,747 10,677 (2,687) 2,628 14,444 (3,767) -26.08% Travel & Conferences 102,493 31,247 5,155 26,638 (4,608) 1,764 22,264 4,374 19.65% Uncollectible Accounts 17,205 8,603 213 409 (8,194) (655) 4,111 (3,702) -90.05% Utilities 158,100 89,050 9,476 90,309 1,259 10,701 65,026 25,283 38.88% Vehicle Equipment 286,812 132,906 18,852 130,946 (1,960) 37,090 151,356 (20,410) -13.49% Supplies & Services Sub-Total 4,133,160 1,845,580 319,019 1,831,044 (14,536) 352,702 1,883,229 (52,185) -2.77% Total Operating Expenses 26,746,883 13,479,431 2,717,929 14,295,070 815,639 2,218,659 13,271,201 1,023,869 7.71% Expenses (Non-Operating): Interest on Long Term Debt 1,489,796 949,447 115,401 679,746 (269,700) 130,618 815,734 (135,988) -16.67% Other Expense 15,220 110 (25,313) (2,091) (2,201) (594) 12,259 (14,350) -117.06% Total Non-Operating Expenses:1,505,016 949,557 90,088 677,655 (271,902) 130,024 827,993 (150,338) -18.16% Total Expenses 28,251,899 14,428,987 2,808,017 14,972,725 543,737 2,348,683 14,099,194 873,531 6.20% Net Position Before Capital Contributions 4,641,864 2,886,305 340,242 4,167,889 1,281,584 528,005 3,819,161 348,728 9.13% Special Item - - 1,098,574 2,204,384 2,204,384 - - 2,204,384 0.00% Capital Contributions (Non-Cash Transaction -- - 270,445 1,238,720 1,238,720 351,960 886,760 251.95% GASB 34 Compliant) Net Position Before Depreciation 4,641,864 2,886,305 (487,887) 3,202,225 315,920 528,005 4,171,121 (968,896)-23.23% Depreciation & Amortization 5,832,000 2,916,000 505,192 3,031,500 115,500 483,506 2,895,619 135,881 4.69% Total Net Position (1,190,136) (29,695) (993,079) 170,725 200,420 44,499 1,275,502 (1,104,777) -86.62% Capital - Direct Labor (29,190) (127,824) (127,824) (21,685)(113,013)(14,811) 13.11% (With December 31, 2016 for comparison purposes) Yorba Linda Water District Water Fund For Period Ending December 31, 2017 3 Annual YTD Dec YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Dec. Actual Actual (thru vs vs FY18 FY18 FY18 FY18 YTD Budget FY17 Dec 2016)PY Actual $PY Actual % Revenue (Operating): Sewer Charge Revenue $2,032,245 $1,016,123 171,023$ 1,030,471$ $14,348 $155,623 $940,587 $89,884 9.56% Locke Ranch Assessments 223,000 117,320 86,566 128,382 11,062 94,317 114,267 14,115 0.00% Other Operating Revenue 97,055 48,527 4,375 28,053 (20,474)13,416 59,288 (31,235) -52.68% Total Operating Revenue:2,352,300 1,181,970 261,964 1,186,906 4,936 263,356 1,114,142 72,764 6.53% Revenue (Non-Operating): Interest 35,000 17,500 2,773 22,106 4,606 1,887 14,175 7,931 55.95% Other Non-Operating Revenue 19,875 9,937 (2,167) (7,895) (17,832)(126) 49,906 (57,801)-115.82% Total Non-Operating Revenue:54,875 27,437 606 14,211 (13,227)1,761 64,081 (49,870) -77.82% Total Revenue 2,407,174 1,209,407 262,570 1,201,117 (8,291)265,117 1,178,223 22,894 1.94% Expenses (Operating): Salary Related Expenses 998,257 480,106 94,684 508,291 28,185 105,209 489,508 18,783 3.84% Supplies & Services: Communications 12,010 6,005 557 3,364 (2,641)697 4,974 (1,609)-32.35% Contractual Services 28,237 14,119 3,316 15,192 1,074 3,586 14,919 273 1.83% Data Processing 15,078 7,539 3,028 7,708 169 2,644 7,975 (267)-3.34% Dues & Memberships 6,053 3,027 67 5,028 2,002 657 5,407 (379)-7.00% Fees & Permits 17,474 8,737 6,450 9,727 990 3,029 7,374 2,353 31.91% Board Election - - - - - - 5,460 (5,460)-100.00% Insurance 19,834 9,917 1,620 9,241 (676)1,505 9,058 183 2.02% Materials 51,653 25,827 377 21,267 (4,560)1,783 15,024 6,243 41.55% District Activities, Emp Recognition 1,694 847 67 700 (147)50 381 319 83.86% Maintenance 170,559 65,280 1,557 59,645 (5,635)19,952 39,166 20,478 52.29% Non-Capital Equipment 20,147 10,074 967 11,289 1,215 3,212 8,042 3,246 40.36% Office Expense 2,963 1,482 266 1,279 (203)364 1,192 87 7.30% Professional Services 40,417 15,709 2,419 11,901 (3,808)1,299 9,075 2,825 31.13% Training 6,782 3,391 1,007 1,957 (1,434)168 1,759 198 11.25% Travel & Conferences 12,752 6,376 388 2,381 (3,995)133 1,539 842 54.66% Uncollectible Accounts 1,295 647 22 83 (564)(57) 803 (720)-89.63% Utilities 12,600 6,300 766 7,129 830 726 5,094 2,036 39.97% Vehicle Equipment 69,188 34,594 6,486 49,811 15,217 4,366 34,810 15,001 43.09% Supplies & Services Sub-Total 488,735 219,867 29,360 217,702 (2,165) 44,114 172,052 45,651 26.53% Total Operating Expenses 1,486,991 699,973 124,044 725,993 26,020 149,323 661,560 64,433 9.74% Expenses (Non-Operating): Interest Expense - - - - - - - - - Other Expense - - 1,205 (9,474) (9,474) (638) (2,742) (6,732) - Total Non-Operating Expenses:- - 1,205 (9,474) (9,474) (638) (2,742) (6,732) 0.00% Total Expenses 1,486,991 699,973 125,249 716,519 16,546 148,685 658,818 57,701 8.76% Net Position Before Capital Contributions 920,183 509,434 137,321 484,598 (24,837)116,432 519,405 (34,808) -6.70% Capital Contributions (Non-Cash Transaction -- - 170,410 992,043 992,043 - 323,030 669,014 207.11% GASB 34 Compliant) Net Position Before Depreciation 920,183 509,434 307,731 1,476,641 967,207 116,432 842,435 634,206 75.28% Depreciation & Amortization 1,350,000 675,000 113,445 680,308 5,308 111,373 666,411 13,897 2.09% Total Net Position (429,817) (165,566) 194,286 796,333 961,898 5,059 176,024 620,309 352.40% Capital - Direct Labor (2,331) (10,540)(10,540) (1,589) (9,356)(1,184)12.65% Yorba Linda Water District Sewer Fund For Period Ending December 31, 2017 (With December 31, 2016 for comparison purposes) 4 $1,843,240 $2,141,663 $2,477,773 $4,241,217 $5,138,936 $4,998,570 $1,073,156 $1,094,073 $1,068,070 $932,629 $1,001,430 $1,051,085 $2,629,647 $2,691,506 $2,707,567 $1,583,285 $2,182,678 $2,369,566 $9,612,264 $9,757,011 $9,514,131 $6,842,319 $8,055,017 $8,990,345 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 FY13 FY14 FY15 FY16 FY17 FY18 Water Revenue Comparison by Fiscal Year Water Revenue (Service Charge) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape/Irrigation) Water Revenue (Residential) $15,158,307 $15,684,253 $15,767,541 $17,409,566 $16,378,061 $13,599,450 5 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 55,561 58,238 56,992 51,254 63,184 80,884 61,537 66,195 54,463 48,708 49,885 59,881 44,179 63,789 58,343 52,187 41,197 49,277 119,268 136,162 131,653 80,846 154,590 207,053 121,214 178,617 142,649 76,382 123,019 138,015 75,302 143,525 147,368 98,164 62,133 100,928 CONSUMPTION BY UNITS CCF Residential Commercial Landscape 6 1141.7 1343.7 1243.3 1217.3 1027.8 1031.4 130.8 148.5 125.0 137.5 107.1 113.1 302.2 380.3 327.5 316.8 270.4 231.7 0.00 0.00 0.07 0.00 0.04 0.0 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0 1800.0 2000.0 JUL AUG SEPT OCT NOV DEC inchesacre-feetTotal Consumption vs. Rainfall Residential Commercial Landscape Rainfall 7 1141.7 1343.7 1243.3 1217.3 1027.8 1031.4 130.8 148.5 125.0 137.5 107.1 113.1 302.2 380.3 327.5 316.8 270.4 231.7 77.2 77.2 73.8 73.1 65.6 62.4 0 10 20 30 40 50 60 70 80 0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0 1800.0 2000.0 JUL AUG SEPT OCT NOV DEC degrees; Fahrenheitacre-feetTotal Consumption vs. Average High Temperature Residential Commercial Landscape Temperature 8 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER $101,350 $90,253 $72,759 $101,350 $90,253 $72,759 $101,350 $90,253 $72,759 $85,326 $73,629 $72,759 $101,349 $90,252 $72,759 $101,350 $90,253 $72,760 Variable Water Cost by Month (Variable Vs. Fixed Expenses) Fixed Portion of Costs (MWDOC's Annual Connection amortized over 12 months for all Fiscal Years) 9 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Variable Costs Analysis FY16 Var Costs FY17 Var Costs FY18 Var Costs (includes 100% of Annual Connection Expensed in July) 10 $990,640 $943,047 $963,930 $1,178,223 $1,201,117 $598,385 $644,490 $618,522 $658,818 $716,519 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Sewer Revenues & Expenses - December (excludes Depreciation, Special Items, and Contriubed Capital) Total Revenue Total Expenses 11 $17,296,656 $17,464,228 $16,372,693 $17,918,355 $19,140,613 $13,818,554 $13,934,563 $12,807,895 $14,099,194 $14,972,725 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Water Revenues & Expenses - December (excludes Depreciation, Special Items, and Contributed Capital ) Total Revenue Total Expenses 12 ITEM NO. 9.2 AGENDA REPORT Meeting Date: January 23, 2018 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 December 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 Acquisition Fund Reconciliation provides a detail reconciliation of the Bond Proceeds for the Construction of the Fairmont Booster Pump Station. The Unrestricted Reserves and Days in Cash Graph presents Water Unrestricted Reserve Balances and Days in Cash at a particular point in time for the last four years. The total average yield for the month ending December 31, 2017 is 1.36%. The overall decrease in the investment balance from the previous month is approximately $182,000. Major balance changes occurred in the following funds: an increase of $2.6 million in the Water Operating Reserve Fund due to a positive net effect between operating revenues and expenses for the reporting month and an interfund transfer from the Employee Liability Reserve; a decrease of approximately $1.3 million in the Employee Liability Reserve Fund to cover the Board approved Rate Credit and the initial payment into the PARS Net Pension Liability Account; a decrease of approximately $747,000 in the Water Capital Project Reserve Fund to cover year to date "pay go" capital project costs and other related capital expenses; and a decrease of approximately $867,000 in the 2017A Acquisition Fund to pay Fairmont Booster Pump Station capital project costs. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: Name:Description:Type: Cash_and_Invest_Rpt_Dec_17.pdf Backup Material Backup Material Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 572,381$ 572,381$ Wells Fargo Bank 54,043 54,043 Pershing 626,425$ 626,425$ 1.67%Total 0.00% Money Market Accounts: 2,221,389.79$ 2,221,390 US Bank (Revenue Bonds)0.88% 953,209 953,209 Bank of the West 0.35% 3,174,599$ 3,174,599$ 8.44%Total 0.72% Federal Agency Securities: 498,695$ 500,000 Federal Home Loan Bank 06/12/18 1.00% 498,890$ 500,000 Federal Home Loan Bank 06/13/18 1.10% 997,585$ 1,000,000$ 2.65%Total 1.05% Certificates of Deposits: 247,735$ 248,000$ CIT Bank, Salt Lake 05/22/18 1.20% 247,851$ 248,000 Discover 05/22/18 1.20% 247,735$ 248,000 Goldman Sachs Bank 05/22/18 1.20% 247,881$ 248,000 Beal Bank 05/23/18 1.00% 247,674$ 247,000 Barclays Bank 04/30/18 2.24% 247,955$ 248,000 State Bank of India 05/14/18 1.15% 248,532$ 249,000 Webster Bank 05/03/18 0.90% 247,869$ 248,000 American Express Centurion Bank 05/23/18 1.20% 247,628$ 248,000 GE Capital Bank 05/24/18 1.10% 248,554$ 249,000 Oriental Bank & Trust 05/29/18 1.05% 248,497$ 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.00% 248,507$ 249,000 Safra National Bank 05/31/18 1.00% 247,494$ 248,000 Townebank Portsmouth 05/31/18 1.00% 248,502$ 249,000 Mascoma Savings Bank 05/29/18 1.00% 198,130$ 200,000 World's Foremost Bk Sydney 05/28/19 1.31% 246,291$ 248,000 Capital One Bk USA Natl Assn 05/13/19 1.20% 243,744$ 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.68% 242,703$ 248,000 EnerBank USA Salt Lake City 08/26/20 1.32% 244,868$ 248,000 EverBank Jacksonville Fla CTF 08/30/19 1.16% 177,966$ 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.26% 240,520$ 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.64% 245,696$ 247,000 PrivateBank & Tr Chicago Ill CTF 03/30/22 2.21% 249,657$ 249,000 JP Morgan Chase Bk NA Columbus 03/31/22 2.44% 5,561,989$ 5,593,000$ 14.78%Total 1.32% Pooled Investment Accounts: 8,246,951$ 8,246,951$ Local Agency Investment Fund 1.24% 1,321,388 1,322,899 CalTRUST Short Term 1.33% 17,692,610 17,825,245 CalTRUST Medium Term 1.61% 27,260,950$ 27,395,096$ 72.46%1.48% 37,621,548$ 37,789,120$ 100%Total Investments 1.36% 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. 12/31/17 Yorba Linda Water District Cash & Investment Portfolio Report December 31, 2017 ________________________________ Kelly D. McCann, Senior Accountant 1 Below is a chart summarizing the yields as well as terms and maturities for the month of December 2017: Average # of Month Portfolio Days to of 2017 Yield Maturity December 1.36%94 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 12/31/2016 12/31/2017 Monthly - December 24,042$ 33,181$ Year-to-Date 152,173$ 211,781$ Budget 2016/2017 2017/2018 Interest Budget, December YTD 57,500$ 155,000$ 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 $37.6 million in cash and investments which is split between minimum reserve requirements and what is available to meet current year obligations (operating costs, debt service, capital costs). The number of Days in Cash for Un-Restricted Water Reserve balance is 401 and Un-Restricted Sewer Reserve balance is 1,208. Reserve Cash and Requirements Investments November 2017 % Alloc December 2017 % Alloc "Target Available for Fund Description Balance 11/30/2017 Balance 12/31/2017 Levels"CY Obligations Water Operating Reserve 10,947,411$ 32.08%13,551,569$ 38.91%9,459,287$ 4,092,282$ Water Emergency Reserve 6,923,016 20.29%6,923,602 19.88%7,790,359 (866,757) Water Capital Project Reserve 5,720,560 16.76%4,972,774 14.28%5,716,336 (743,562) Rate Stabilization Reserve 3,948,282 11.57%3,949,360 11.34%3,957,692 (8,332) Un-Restricted Water Reserve Balance 27,539,269 29,397,305 26,923,674 2,473,631 Conservation Reserve 103,416 0.30%103,071 0.30%- 103,071$ Employee Liability Reserve 1,754,243 5.14%407,368 1.17%272,054 135,314 Restricted Reserve Balance 1,857,660 510,440 272,054 238,386 Sewer Operating Reserve 657,775 1.93%852,039 2.45%498,142$ 353,897$ Sewer Emergency Reserve 2,550,191 7.47%2,550,384 7.32%2,545,934 4,450 Sewer Capital Project Reserve 1,517,256 4.45%1,517,609 4.36%1,519,358 (1,749) Un-Restricted Sewer Reserve Balance 4,725,221 4,920,032 4,563,434 356,598 Total Reserve Balances 34,122,150$ 100.00%34,827,777$ 100.00%31,759,162$ 3,068,615$ Water Operating 426,967 296,733 Sewer Operating 165,723 275,649 592,690 572,381 Revenue Bond 2017A-Acquisition Fund 3,089,239 2,221,293 Rev. Bond 2017A-Principal & Interest 97 Total Cash and Investments 37,804,078$ 37,621,548$ Cash & Investment Summary Report Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) 2 Yorba Linda Water District Fair Value Measurement Report December 31, 2017 Quoted Observable Unobservable Prices Inputs Inputs Investments Level 1 Level 2 Level 3 Total CalTRUST Investment Pool -$ 19,013,999$ -$ 19,013,999$ Local Agency Investment Fund - 8,246,951 - 8,246,951 U.S. Government Sponsored Agency Securities - 997,585 - 997,585 Negotiable Certificates of Deposit - 5,561,989 - 5,561,989 Total Investments -$ 33,820,524$ -$ 33,820,524$ 3 $25,674,857 $30,381,649 $29,312,289 $29,397,305 358 414 415 401 60 110 160 210 260 310 360 410 460 $20,000 $5,020,000 $10,020,000 $15,020,000 $20,020,000 $25,020,000 $30,020,000 $35,020,000 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Unrestricted Reserves & Days in Cash (Water) Unrestricted Reserves (Water)Days in Cash (Water) 4 2017A Revenue Bond - Acquisition Fund Reconciliation for the Construction of the Fairmont Booster Pump Station Transaction Beginning Construction Retention YLWD Interest AVAILABLE Description Date Balance Costs Payments Labor Earned subtotal Balance Beginning Balance 5/11/2017 6,000,000.00$ 6,000,000.00$ 6,000,000.00$ Withdrawal Request #1 5/31/2017 (492,396.40)$ (25,915.60)$ (518,312.00)$ 5,481,688.00$ Interest Earned 6/1/2017 1,304.58$ 1,304.58$ 5,482,992.58$ Withdrawal Request #2 6/27/2017 (382,969.61)$ (20,155.35)$ (8,676.19)$ (411,801.15)$ 5,071,191.43$ Interest Earned 7/3/2017 2,191.39$ 2,191.39$ 5,073,382.82$ Withdrawal Request #3 7/25/2017 (321,714.36)$ (15,243.60)$ (336,957.96)$ 4,736,424.86$ Interest Earned 8/1/2017 2,492.88$ 2,492.88$ 4,738,917.74$ Withdrawal Request #4 8/22/2017 (133,871.43)$ (6,779.60)$ (140,651.03)$ 4,598,266.71$ Interest Earned 9/1/2017 2,418.85$ 2,418.85$ 4,600,685.56$ Withdrawal Request #5 9/26/2017 (274,696.65)$ (12,562.60)$ (17,344.18)$ (304,603.43)$ 4,296,082.13$ Interest Earned 10/3/2017 2,286.89$ 2,286.89$ 4,298,369.02$ Withdrawal Request #6 10/24/2017 (417,145.84)$ (21,950.10)$ (439,095.94)$ 3,859,273.08$ Withdrawal Request #7 11/28/2017 (734,534.40)$ (37,773.60)$ (772,308.00)$ 3,086,965.08$ Interest Earned 11/30/2017 2,176.68$ 2,176.68$ 3,089,141.76$ Withdrawal Request #8 12/21/2017 (828,102.40)$ (41,807.10)$ (869,909.50)$ 2,219,232.26$ Interest Earned 12/31/2017 2,060.58$ 2,060.58$ 2,221,292.84$ subtotal =6,000,000.00$ (3,585,431.09)$ (182,187.55)$ (26,020.37)$ 14,931.85$ 2,221,292.84$ 5 ITEM NO. 9.3 AGENDA REPORT Meeting Date: January 23, 2018 Subject:Evaluation of Board Policies and Procedures Including Incorporation of Annual Self-Assessment (Hall) DISCUSSION: Attached is a sample evaluation form and working copy of the Board of Directors' Policies and Procedures manual. Staff has noted some changes to the manual that have been approved and/or previously discussed by the Board since the last revision. A few references to applicable code have also been added for convenience. ATTACHMENTS: Name:Description:Type: Board_and_Mgmt_Assessment.pdf Backup Material Backup Material BOD_Policies_and_Procedures_Manual.pdf Backup Material Backup Material ASSESSING GOVERNING BOARD EFFECTIVENESS This survey was developed by Len Wood & Associates to help assess the effectiveness of the governing body and its relationship with staff. Please address each statement by allocating points on the answer grid as follows: "O" if you feel the statement is very true. 11 1 11 if you feel the statement is somewhat true. "2" if you feel the statement is somewhat untrue. 11 311 if you feel the statement is very untrue. Do not spend too much time on any statement. Your first reaction is usually best. Answer the way things are -not the way you would like them to be. ISSUE POINTS 1.Board meetings start on time.D 2.All board members feel free to express their opinions.D 3.All members are contributing members of the board team.D 4.The elected body does not attempt to micro-manage.D 5.While they may not like some of the decisions, people D perceive the board as fair. 6.Staff provides a recommendation on every issue no matter how controversial. 7.The board has an overall vision for the community.D 8.The chair keeps audience members informed of board issues and actions ·9.Our board gets things done.D ISSUE POINTS 10.There is agreement on who is ultimately responsible for putting items on and/or removing them from the agenda. 11.Members feel free to critique each other's positions on issues.D 12.The board works well as a team.D 13.Our board does not engage in solution 11 reengineeringl' at meetings. 14.Board members avoid berating members of the audience; even if provoked. 15.The board conducts timely and meaninful evaluations of the managers performance. 16.The board.has developed its own mission or goal statement.D 17.The chairperson. prevents dominating board members from having a disproportionate influence. 18.The board does not get stalemated over the process or procedures. 19.The board does not spend too much time modifying or correcting the minutes at meetings. 20.Civilized disagreement is a board strength.D 21 T earn members actively listen to each other.D 22.Staff does not get overly involved in policy decisions.D 23.Meaningful public participation is encouraged.D 24.Staff does not filter the information it passes on to the board.D 25.Members know what the board's top five goals are ..i I ISSUE POINTS 26.The chairperson protects board members from audience or colleague attacks. 27.The board made significant progress on its top goals last year.D 28.Operating rules and procedures are known by all board members. 29."Baggage" from one argument is not carried to the next.D 30.While board members may have positions, minds are not made up before meetings. 31.Individual board members do not try to influence personnel decisions. 32.Board members keep the audience informed of each item, the issue, the background and possible decisions. 33.Staff follows through as promised.D 34 .. Day-to-day decisions are consistent with the board's overall goats. 35.The chairperson prevents premature rejection of new thoughts without a fair evaluation. 36.Board members do their homework before meetings.D 37.The agenda packet is "user friendly."D 38.Decisions are usually made only after each member has has hes/her say. 39.Members are open with each other.D ISSUE POINTS 40.Board members adequat ely communicate goals and D philosophies to staff. 41.Members of the audience do not feel intimidated when appearing before the board. 42.Openness and trust exists between the board and staff.D 43.The board develops an annual work program with clear objectives. 44.The chairperson does not unfairly use the powers of the position to win a point or argument. 45.The board is not reluctant to make an important, yet controversial decision. 46.Staff provides all the significant alternatives in their staff reports. D 47.Members know how to keep conflict from becoming destructive. D 48.The board does not operate as an exclusive country club.D 49.The board is not complacent about its oversight responsibilities. I I 50.Board members take care to observe .the appearance as well as the principle of impartiality. 51.The board and staff do not surprise each other at meetings.D 52.Our priorities do not change too often.D 53.In our meetings, the discussion rarely drifts off the subject.D 54.The board is adept at identifying and exploiting opportunities.D ASSESSING GOVl=RNING BOARD Ef=f=ECTIVENESS ---. Record your answers here. A B C D 1D 2D 30 40 10D 11D ·12D 130 190 20D 21D 22D 2aD 290 300 310 370 380 390 400 46C-__=J 470 480 490 AD so cD oD E F G H 50 aD 70 aD 140 150 160 170 230 240 250 2 60 320 330 340 350 410 420 430 440 500 510 520 530 TOTALS ED FD GO HD Total Points: 90 180 270 360 450 540 ,o ASSESSING GOVERNING BOARD EFFECTIVENESS Points Rank A.A Supportive Framework B.Conflict Management Process C.Teamwork D.Roles E.Community Rapport F.Staff Relationships G.Clear Sense of Purpose H.Chairperson Leadership I.Productivity YORBA LINDA WATER DISTRICT Board of Directors Policies and Procedures Manual Amended August 22, 2017 Resolution No. 17-28 2 TABLE OF CONTENTS 1.0 PURPOSE AND SCOPE ........................................................................................................... 3 2.0 MISSION, VISION AND CORE VALUES .................................................................................. 3 3.0 BASIS OF AUTHORITY ............................................................................................................ 4 4.0 DUTIES, RESPONSIBILITIES AND CONDUCT ....................................................................... 4 5.0 COMPOSITION, TERMS AND VACANCY .............................................................................. 11 6.0 OFFICERS ............................................................................................................................... 13 7.0 APPOINTED STAFF AND OTHERS ....................................................................................... 14 8.0 COMMITTEES ......................................................................................................................... 16 9.0 DIRECTORS’ COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENT .............. 16 10.0 BOARD MEETINGS, GENERAL ............................................................................................. 22 11.0 BOARD MEETINGS, AGENDAS............................................................................................. 23 12.0 BOARD MEETINGS, MINUTES .............................................................................................. 28 13.0 BOARD MEETINGS, CONDUCT............................................................................................. 28 14.0 BOARD ACTIONS AND DECISIONS ...................................................................................... 30 15.0 EXHIBITS AND APPENDIXES ................................................................................................ 31 3 PURPOSE AND SCOPE 1.1 The purpose of this manual is to provide a compilation of policies and procedures approved by the Board to facilitate the proper conduct of District business. Each Director shall be provided with a copy of this manual, acknowledge receipt in writing (see Exhibit A), and affirm their intent to comply with the policies and procedures contained herein. If any portion of this manual is in conflict with federal or state law or regulations that apply to the District, said legislation or regulations shall prevail. MISSION, VISION AND CORE VALUES 1.2 Mission Statement Yorba Linda Water District will provide reliable, high quality water and sewer services to protect public health and the environment with financial integrity and superior customer servicein an environmentally responsible manner, while maintaining an economical cost and unparalleled customer service to our community. 1.3 Vision Yorba Linda Water District will accomplish our mission to improve the quality of life for those we serve by:become the leading, innovative and efficient source for high quality reliable services. A. Embracing Proven Technology B. Improving Customer Satisfaction C. Providing Efficient and Responsive Operations D. Ensuring Reliable Infrastructure 1.4 Core Values The Yorba Linda Water District Board of Directors and staff are guided in everything we do by the following core values: Integrity – We demonstrate integrity every day by practicing the highest ethical standards and by ensuring that our actions follow our words. Accountability – We acknowledge that both the Board and staff of the District are accountable to the public that we serve, as well as to each other. Responsibility - We take full responsibility for our actions – both our successes and our opportunities for growth. We maintain a commitment of courtesy, assessment, and resolution with all customer concerns. Transparency – We promote a culture where we actively listen to our customers and communicate openly about our policies, processes, and plans for the future. Teamwork – Success centers on all departmentsWe working together andby sharing information and resources to achieve common goals. We are dedicated to ensuring that every voice of the District, from the Board to each individual employee is treated with 4 dignity and respect, and that differences are valued and individual abilities and contributions are recognized. Respect – We ensure every voice of the District is treated with dignity and civility; differences are valued and individual abilities and contributions are recognized. BASIS OF AUTHORITY 1.5 The District is a County Water District, organized and existing under the County Water District Law. The Board is the legislative body, and functions as the District’s policymaking body. It can only function as a unit. Apart from their role as a part of this unit, individual Directors have no authority with regard to any aspect of District business. 1.6 As individuals, Directors may not commit the District to any policy, act, or expenditure without prior Board approval nor give direction to the General Manager, staff, contract personnel or consultants without prior Board approval. Directors do not represent any fractional segment or region of the community, but are part of a legislative body that represents and acts for the District as a whole. Since Directors are elected officials, no Director may delegate his/her authority to act as a Director. 2.0 DUTIES, RESPONSIBILITIES AND CONDUCT Duties and Responsibilities 2.1 The Board’s primary responsibility is the formulation and evaluation of District policy. The General Manager is responsible for running the District’s business. Routine matters concerning operational aspects of the District are delegated to professional staff members by the General Manager. Directors are responsible for monitoring District progress in attaining its goals and objectives, while pursuing its mission. The Board establishes goals, objectives, expectations, and measurement criteria for the General Manager’s performance. Board members shall provide policy direction and instructions to the General Manager on matters within the authority of the Board by a majority vote during a duly convened meeting of the Board. 2.2 In order to assist in the governance of the behavior between and among members of the Board, the following practices shall be observed: A. The dignity, style, values and opinions of each Director shall be respected. B. Responsiveness and attentive listening in communication is encouraged. C. The needs of the District’s constituents shall be the priority of the Board of Directors. D. Directors shall commit themselves to emphasizing the positive, avoiding double talk, hidden agendas, gossip, backbiting, and other negative forms of interaction. E. Directors shall commit themselves to focusing on issues and not personalities. The presentation of the opinions of others shall be encouraged. Cliques and voting blocks based on personalities rather than issues shall be avoided. 5 F. Differing viewpoints are healthy in the decision-making process. Individuals have the right to disagree with ideas and opinions, but without being disagreeable. Once the Board takes action, Directors shall commit to supporting said action and not create barriers to the implementation of said action. 2.3 In order to maintain effective working relationships and support the chain of command, the following procedures shall be followed: A. Board members shall address matters within the authority of the General Manager through the General Manager, not directly through District employees. B. Accordingly, individual Directors’ requests for information from staff or contract personnel/consultants shall always be made to the General Manager. C. Responsive materials to Directors’ requests for information shall be distributed by the General Manager or his/her designee, to all Board members at the same time. D. If the General Manger’s response is deemed inadequate, a Director may contact the Board President or raise the issue directly at a Board meeting, where the Board shall determine whether or not the issue warrants attention and if so, schedule it for a future meeting. E. If the General Manager anticipates being unavailable, he/she shall notify the Board in advance and provide a designee contact. F. When the General Manager is unavailable in person or by technological means, Board members, at their discretion, may contact the General Manager’s designee. G. Board members shall refrain from making requests directly to District employees to undertake analysis, perform work assignments or change the priority of work assignments. District employees have been instructed to notify the General Manager of all requests received from a Board member within 48 hours. H. If approached by an employee concerning District policy, Board members shall direct inquiries to the appropriate staff supervisor or General Manager. I. In handling complaints from residents and property owners of the District, said complaints shall be referred directly to the General Manager. J. In handling matters related to public safety, concerns shall be reported to the General Manager or the District office. Emergency situations shall be dealt with immediately by seeking appropriate assistance. K. In seeking clarification for policy-related concerns, especially those involving personnel, legal action, land acquisition and development, finances and programming, said concerns shall be referred directly to the General Manager or legal counsel. 6 2.4 The work of the District is a team effort. All individuals shall work together in the collaborative process, assisting each other in conducting the affairs of the District. A. When responding to constituent requests and concerns, Directors shall be courteous, responding to individuals in a positive manner and routing their questions through appropriate channels. B. Directors shall develop a working relationship with the General Manager wherein current issues, concerns and District projects can be discussed comfortably and openly. C. Directors shall function as a part of the whole. Issues shall be brought to the attention of the Board as a whole, rather than to individual members selectively. 2.5 Directors shall attend all meetings of the Board, including committee, agency, and intergovernmental meetings to which they may be assigned, unless there is good cause for absence, and be properly prepared for participation and deliberation. 2.6 Newly elected or appointed Directors shall participate in a minimum of two hours of harassment prevention training and a minimum of six hours of basic governance training within one year from the first day of service with the District. Thereafter, all Directors shall participate in a minimum of two hours of harassment prevention training every two years and a minimum of six hours of basic governance training every five years. Participation in the Governance Foundation course, offered by the California Special District Association’s Special District Leadership Academy, shall satisfy the basic governance training requirement. 2.7 The Board shall review the policies and procedures contained in this manual on an annual basis or more often as required. Code of Conduct (Ethics Policy) 2.8 It is the policy of the District to require the highest standards of ethics from its Board members. The operation of the District requires that decisions and policy be made within the proper channels of governmental structure, that the public office not be used for personal gain, and that all individuals associated with the District remain impartial and responsible towards the public. Accordingly, it is the policy of the District that Board members shall maintain the highest standard of personal honesty and fairness in carrying out their duties. The following are guidelines for ethical conduct to be followed by the Board: A. Board members are obligated to uphold the Constitution of the United States and the Constitution of the State of California, and to uphold the laws of national, state and local governmental agencies. Board members shall comply with all applicable laws regulating their conduct, including conflicts of interest, financial disclosure and open government laws. It is the responsibility of Board members to conduct themselves both professionally and personally in a manner above reproach and to avoid the appearance of impropriety. 7 B. Board members in the performance of their official duties and responsibilities shall neither harass nor discriminate against any individual on the basis of their protected classification(s), the perception of any individuals protected classification(s), or because the individual associates with a person who has or is perceived to have a protected classification(s). The term “Protected Classification” includes race, religion, color, sex (including gender, gender identity, gender expression, transgender, pregnancy, and breastfeeding), sexual orientation (including heterosexuality, homosexuality and bisexuality), national origin, ancestry, citizenship status, marital status, age, medical condition, genetic characteristics or information, military or veteran status, and physical or mental disability (whether perceived or actual). No Board member shall grant any unfair or inappropriate consideration, treatment, or advantage to any individual or group beyond that which is available to others or groups with the same circumstances. C. Except where specifically authorized by the General Manager in the public interest, no Board member shall knowingly use or permit the use of District-owned vehicles, equipment, telephones, materials or property, nor require a District employee to perform services for personal convenience or profit. Board members shall safeguard the District’s property, equipment, moneys, and assets against unauthorized use or removal, as well as from loss due to criminal act or breach of trust. D. Board members shall not disclose information that legally qualifies as confidential to unauthorized individuals without approval from a majority vote of the Board and consultation with legal counsel. This includes information that (1) has been received during a Closed Session; (2) is protected from disclosure under the attorney/client or other evidentiary privilege; or (3) is not required to be disclosed under the California Public Records Act (GC § 6250 et seq.). A Board member may make a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of law, including disclosing facts to a district attorney or grand jury necessary to establish the alleged illegality of a District action. Prior to disclosing confidential information, however, a Board member shall first bring the matter to the attention of either the President or the full Board. E. Board members shall avoid conflicts, or perceived conflicts of interest in connection with District decisions and activities. 1. A Board member shall not have a financial interest in a contract with the District, which includes the purchase or sale of goods and services. The Board shall not authorize any District contract if a Board member is financially interested in the contract. 2. A Board member shall not participate in the discussion, deliberation or vote on a matter before the Board, or attempt to influence a decision of the Board, if the Board member has a financial interest, which is prohibited under California law. If a Board member believes that he/she may be disqualified from participation in the discussion, deliberations or vote on a particular matter due to a financial interest, the following procedures shall be followed: 8 a. If a Board member becomes aware of the potential conflict of interest before a Board meeting at which the matter will be discussed or acted on, the Board member shall notify the General Manager and legal counsel of the potential conflict of interest, so that a determination can be made whether it is a disqualifying conflict of interest. b. If it’s not possible for a Board member to discuss the potential conflict with the General Manager and legal counsel before the meeting, or if the Board member does not become aware of the potential conflict until during the meeting, the Board member shall immediately disclose the potential conflict during the Board meeting (see Exhibit B), so that there can be a determination as to whether it is a disqualifying conflict of interest. c. Upon a determination that there is a disqualifying conflict of interest, the Board member (1) shall not participate in the discussion, deliberation or vote on the matter for which a conflict of interest exists, which shall be so noted in the Board minutes; and (2) leave the room until after the discussion, vote and any other disposition of the matter is concluded (see also Section 13.1 C). 3. A Board member shall not recommend the employment of a relative to the District or to a vendor, contractor or consultant known by the Board member to be bidding or negotiating a contract with the District. F. To avoid non-compliance with the Ralph M. Brown Act (GC § 54950 et seq.), Directors are prohibited from sending and receiving electronically produced messages during meetings. G. For a period of one year after leaving office, former Board members shall not represent any non-governmental entities before the District for compensation. This restriction shall not apply to governmental entities. 2.9 Board members are prohibited from soliciting political funds or contributions at District facilities and prohibited from using the District’s seal, trademark, logo, branding, stationary or other indicia of the District’s identity, in any solicitation for political contributions contrary to State law. A Board member shall not accept, solicit or direct a political contribution from: A. District employees. B. Consultants or contractors used by the District in the past 12 months. C. Individuals, entities, vendors, consultants, sub-consultants, contractors, or sub- contractors which have a personal or financial interest in a contract or other matter while it is pending before the District and for 6 months after the District renders a final decision on that contract or other matter. 9 2.10 The appointment or election of a Board member to a public entity, other than the District, may result in action that is contrary or inconsistent with the interests of the District and could result in loss of the member’s position of the Board. Board members may, with consent of the Board, consult with legal counsel and the Board may authorize a request for an opinion from the Attorney General of the State of California as to the incompatibility of offices. 2.11 No Board member shall receive or agree to receive, directly or indirectly, any compensation, reward, honoraria or gift from any source except for recognition from the District for any action related to the conduct of the District’s business. A Board member shall not accept gifts that exceed the limitations specified in California law. Any and all gifts, campaign contributions, income and financial information shall be disclosed as required under the provisions of the Political Reform Act of 1974 and applicable regulations adopted by the Fair Political Practices Commission. 2.12 Board members and persons elected or appointed, who have not yet assumed office as members of the Board, shall fully comply with the provisions of the Ralph M. Brown Act (GC § 54950 et seq.). 2.13 The General Manager has primary responsibility for (1) ensuring compliance with the District’s personnel policies and procedures; (2) ensuring that District employees do not engage in improper activities; (3) investigating allegations of improper activities; and (4) taking appropriate corrective and disciplinary actions. The Board ensures that the General Manager is operating the District according to the law and the policies approved by the Board. A. Board members shall disclose to the General Manager, to the extent not expressly prohibited by law, improper activities within their knowledge. Board members shall not interfere with the General Manager’s responsibilities in identifying, investigating and correcting improper activities, unless the Board determines the General Manager is not properly carrying out these responsibilities. B. A Board member shall not directly or indirectly use or attempt to use the authority or influence of the position to intimidate, threaten, coerce, command or influence any person for the purpose of preventing such person from acting in good faith to bring to the attention of the General Manager or the Board any information that, if true, will constitute a work-related violation by a Board member or District employee of any law or regulation. This includes, but is not limited to (1) misappropriation or waste of District funds; (2) abuse of authority; (3) creating substantial danger to public health or safety by an act or omission of a District official or employee; (4) use of a District office or position or of District resources for personal gain; or (5) a conflict of interest of a Board member or employee. 2.14 Any new Director must receive ethics training as soon as practical, but not more than one year, from the first day of service with the District. Thereafter, all Directors shall be required to receive ethics training at least once every two years. A Director who serves on more than one local agency board may satisfy this requirement by obtaining ethics training once every two years without regard to the number of local agencies with which he/she serves. The District shall provide information annually on where training is available. All Directors shall provide a copy of proof of participation in the required ethics 10 training to the District. Copies of proofs of participation shall be considered public documents and shall be retained for a minimum of five years (GC § 53235.2(b)). 2.15 Directors are not subject to the District’s Conflict of Interest Codes, but are subject to the disclosure requirements of the Political Reform Act (GC § 87100 et seq., GC § 87203). Directors are required to file a Statement of Economic Interests (Form 700) with the County when assuming office, on an annual basis thereafter, and when leaving office. Filing of these forms shall be performed using the County’s e-file system. 2.16 Directors appointed to other agency’s boards (e.g. OCSD or ACWA-JPIA) shall be required to file Form 700’s in accordance with that respective agency’s Conflict of Interest Codes. 2.17 The following procedures shall be followed when any member of the Board reasonably believes that another member of the Board has engaged in alleged misconduct or has failed to act in the best interests of the District. These procedures shall not be effective in any case in which a non-board member seeks redress for alleged misconduct by a Board member. While the Board has discretion in deciding the actions it may choose to take in response to a complaint, this section provides definitions and procedures related to three types of actions: admonition, sanction and censure. A. Admonition is the least severe form of action. An admonition may typically be directed to all members of the Board, reminding them that a particular type of behavior is not in the best interests of the District, and that, if it occurs or is found to have occurred, could cause a member to be subject to sanction or censure. An admonition may be issued in response to a particular alleged action or actions, although it will not necessarily have to be triggered by a complaint of misconduct. An admonition may be issued by the Board prior to any findings of fact regarding any complaint, and because it is a warning or reminder, will not necessarily require an investigation. B. Sanction is the next most severe form of action. Sanction shall be directed to an individual member of the Board based on a particular action (or set of actions) that is determined to be misconduct but is considered by the Board not to be sufficiently serious to require censure. A sanction may be based upon the Board’s review and consideration of a complaint. A sanction may be issued by the Board, and because it is not punishment or discipline, will not necessarily require an investigation. C. Censure is the most severe form of action. Censure is a formal statement of the Board officially reprimanding one of its members. It is a punitive action, which serves as a penalty imposed for misconduct, but it carries no fine or suspension of the rights of the member as an elected official. It can however, include such actions as the disapproval of expense reimbursement requests, de-authorization of attendance at conferences, seminars and other activities at District expense, removal of the member from Board committee, agency and intergovernmental meeting assignments, and other such remedies as may be deemed appropriate by the Board. Censure shall only be used for cases in which the Board determines that the misconduct is a serious offense. In order to protect the overriding principle of freedom of speech, the Board shall not impose censure on any of its members for the exercise of his/her First Amendment rights, no matter how distasteful the 11 expression was to the Board or the District. However, nothing herein shall be construed to prohibit the Board from collectively condemning and expressing their strong disapprobation of such remarks. Before the imposition of a censure, the Director accused of a violation shall be entitled to written notice of the allegation, the right to provide a written response to the allegation, and an opportunity to respond in writing as to the results of an investigation. 2.18 All complaints shall be submitted in writing to the General Manager and/or the District’s legal counsel for review and determination as to whether there is sufficient basis for further action. Complaints that specifically seek admonition, sanction or censure as a specific remedy shall be treated as a request for that remedy. Once a complaint has been filed, the General Manager, in conjunction with legal counsel, shall bring the matter before the Board. The Director named in a complaint shall be given an opportunity to respond to the complaint in writing. If the Board determines, in consultation with legal counsel, that an investigation is warranted, the Board shall initiate an investigation by the appropriate investigator, entity or authority, as determined in the reasonable discretion of the Board. In the event of such an investigation, a report of the findings of said investigation, along with the accused Director’s written response to the report, shall be presented to the board for majority action. If there is no merit, the matter shall be disposed of with no further action. When the Board decides, based upon findings and the accused Director’s defense, that a violation has occurred, it may choose to impose one of the above listed internal remedies. Any action taken by the Board to impose a sanction or censure, shall be taken by way of written resolution. 2.19 At any point during any of these processes, the Board may refer the matter, as appropriate, to the Orange County District Attorney or other proper authorities for possible investigation, enforcement or prosecution. Prior to or following such referral, the Board may also proceed with any of the actions described in this section. COMPOSITION, TERMS AND VACANCY 2.20 The District shall have a Board of five Directors each of whom, whether elected or appointed, shall be a voter of the District (WC § 30500). 2.21 The term of office of each Director, other than Directors appointed to fill an unexpired term, shall be four years (WC § 30502). Terms of office are staggered, with elections held in November of every even numbered year. 2.22 Elections are held at large, which means that all voters throughout the District have the opportunity to vote for any person seeking election. 2.23 Before entering upon the duties of his/her office, each Director shall take and subscribe the official oath and file it with the Secretary. The oath of office may be taken before the Secretary, any member of the Board, or any officer authorized by law to administer oaths (WC § 30509-30510). 2.24 Each Director elected or appointed shall hold office until his/her successor qualifies (WC § 30506). 12 2.25 If a person elected fails to qualify, the office shall be filled as if there were a vacancy in the office (WC § 30503). 2.26 From time to time a vacancy may occur on the Board for a variety of reasons. An office becomes vacant on any of the following events before the expiration of a Director’s term (GC § 1770 et seq.): A. Death of an incumbent; B. A court’s declaration that the incumbent is physically or mentally incapacitated; C. Resignation; D. Removal from office; E. Ceasing to be an inhabitant of the District; F. Absence from the state beyond periods allowed by law; G. Ceasing to discharge the duties of the office for three consecutive months; H. Conviction of a felony; I. Refusal or neglect to file required oath of office; J. Declaration by a competent tribunal that election or appointment is void; or K. Commitment to a hospital or sanitarium by a court of competent jurisdiction. 2.27 All vacancies occurring in the office of Director shall be filled pursuant to Section 1780 of the Government Code (WC § 30504). The District shall notify the county elections official of the vacancy no later than 15 days after the Board is notified of the vacancy or the effective date of the vacancy, whichever is later. A. The remaining members of a five person board may fill a vacancy by appointment. The appointee shall hold office until the District general election 130 days or more after the effective date of the vacancy. Appointments shall be made within 60 days after the effective date of the vacancy. Notice of the vacancy shall be posted in three or more conspicuous places within the District and published in a newspaper of general circulation at least 15 days prior to an appointment. The remaining members may call an election to fill the vacancy within 60 days of the vacancy, in lieu of an appointment, on the next available election date provided by Chapter 1 of Division 1 of the Election Code that is 130 days or more after the vacancy. B. If the vacancy is not filled or an election called within 60 days of the vacancy, the County Board of Supervisors may fill the vacancy within 90 days of the vacancy or order the District to call an election to fill the vacancy. 13 C. If neither (A) or (B) has occurred within 90 days, the District shall call an election to be held on the next available election date provided by Chapter 1 of Division 1 of the Election Code that is 130 days or more after the vacancy occurs. D. If the remaining Board falls below a quorum, the Board of Supervisors may waive the 60 day period provided in (A) and appoint immediately, or may call an election to fill the vacancy under Chapter 1 of the Election Code. The Board of Supervisors shall only fill enough vacancies to provide a quorum. E. Appointees shall hold office until the next District general election. Electees shall hold office for the unexpired balance of the term of office. 2.28 If a Director’s place of residence is moved outside District boundaries, and if within 180 days of the move the Director fails to reestablish a place of residence within the District, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the Board (GC § 1770 and WC § 30508). OFFICERS 2.29 President and Vice President A. A President and Vice President of the Board shall be elected annually at the District’s reorganization meeting held at the first regular meeting of the Board in December of each year. The President shall assume the chair of the Presiding Officer immediately after election. B. The President shall make committee, agency, and intergovernmental meeting assignments, subject to consent of the Board, annually by the first meeting of the Board of Directors to be held in January of the subsequent year. C. If the President is absent from a meeting of the Board, the Vice President shall serve as the Presiding Officer. If both the President and Vice President are absent, the Secretary shall take the chair so that the Directors present may elect a Presiding Officer. Upon late arrival of the President or Vice President at the meeting, the chair shall be relinquished at the first opportunity not disruptive to the conduct of business. D. In the event the President becomes incapacitated or is otherwise unable to act in his/her official capacity, as determined by a majority vote of the Board, the Vice President shall serve until the incapacity is cured or relieved. In the event the Vice President becomes incapacitated or is otherwise unable to act in his/her official capacity, as determined by a majority vote of the Board, an interim Vice President shall be elected at the District’s next regular meeting of the Board to serve until the incapacity is cured or relieved. E. The Presiding Officer, established pursuant to these policies, shall conduct the proceedings of the Board. 14 F. The Presiding Officer shall sign all ordinances, resolutions and contract documents approved and adopted by the Board. G. The President and Vice President of the Board shall serve as the President and Vice President of the Public Financing Corporation. The Officers of the Corporation shall be updated annually at the District’s reorganization meeting held at the first regular meeting of the Board in December of each year. H. Individuals serving as President or Vice President of the Board and the Corporation may be removed from office by a majority vote of the Board. APPOINTED STAFF AND OTHERS Appointed Staff, as defined in this section, shall mean the General Manager, Board Secretary, Assistant Board Secretary and Treasurer, who are appointed by the Board. 2.30 General Manager, Secretary, Assistant Secretary and Treasurer A. A General Manager shall be appointed by a majority vote of the Board and serve at the pleasure of the Board. The General Manager shall perform all duties set forth in County Water District Law (WC § 30000 et seq.), set forth in these policies, set forth in the General Manager’s contract with the District, imposed by the Board, and in accordance with governing laws and regulations. In summary, the General Manager shall: (1) have full charge and control of the maintenance, operation, and construction of the water works or water works system of the District; (2) have full power and authority to employ and discharge all employees and assistants at pleasure; (3) prescribe the duties of employees and assistants; (4) fix and alter the compensation of employees and assistants subject to budget limitations as approved by the Board; (5) perform other duties imposed by the Board; and (6) report to the Board in accordance with the rules and regulations as adopted by the Board (WC § 30580-30581). B. A Secretary and Assistant Secretary shall be appointed by a majority vote of the Board and serve at the pleasure of the Board. The Secretary, or the Assistant Secretary in the absence of the Secretary, shall attest all ordinances and resolutions approved and adopted by the Board, countersign all contract documents approved and adopted by the Board, prepare the minutes of each meeting held by the Board, and perform all duties set forth in the County Water District Law (WC § 30000 et seq.), set forth in these policies, imposed by the Board, and in accordance with governing laws and regulations. C. A Treasurer shall be appointed by a majority vote of the Board and serve at the pleasure of the Board. The Treasurer shall perform all duties set forth in the County Water District Law (WC § 3000 et seq.), set forth in these policies, imposed by the Board, and in accordance with governing laws and regulations. The Treasurer shall install and maintain a system of auditing and accounting that shall completely and at all times show the financial condition of the District (WC § 30582). D. A member of the Board shall not serve as the General Manager, Secretary, Assistant Secretary or Treasurer. The same person may be appointed as General 15 Manager and Secretary or Secretary and Treasurer. There shall be no additional compensation for also serving as Secretary, Assistant Secretary or Treasurer if the individual so serving is an employee of the District. E. The Secretary, Assistant Secretary, and Treasurer of the District shall serve as the Secretary, Assistant Secretary, and Treasurer of the Public Financing Corporation. Appointed staff of the Corporation shall be updated annually at the District’s reorganization meeting held at the first regular meeting of the Board in December of each year. F. The General Manager, Secretary, Assistant Secretary, Treasurer, and other employees or assistants of the District, as required by the Board, shall each give a bond to the District conditioned for the faithful performance of his/her duties as the Board may provide (WC § 30545). Payment for the provision of these bonds shall be provided by the District. G. Individuals serving as General Manager, Secretary, Assistant Secretary, or Treasurer of the Board and the Corporation may be removed from their appointments by a majority vote of the Board. 2.31 District Legal and Labor Counsel A. The District’s Legal and Labor Counsel are law firms that are appointed by and report to the Board of Directors. 1. Legal Counsel shall serve as the attorney for the District and its Board in all legal matters pertaining to the operation, maintenance, and other related business of the District. Legal Counsel shall perform such duties as the Board or General Manager may request, and shall (1) review all Board actions to insure legality and acceptability under law; (2) prepare or review legal documents and provide legal counsel, as required by the Board or General Manager; and (3) attend and/or participate in Board meetings and other meetings as directed by the Board or the General Manager. 2. Labor Counsel shall serve as the attorney for the District and its Board in all legal matters pertaining to public sector law, employment law, and other related business of the District. Labor Counsel shall perform such duties as the Board or General Manager may request, and shall (1) review all employment related matters to insure legality and acceptability under law; (2) prepare or review employment and labor related documents and provide legal counsel, as required by the Board or General Manager and (3) attend and/or participate in Board meetings and other meetings as directed by the Board or the General Manager. 2.32 District Auditor A. The District’s Auditor is a certified audit firm that is appointed by and reports to the Board, and that conducts the District’s annual audit and prepares the District’s annual audit report. The District’s auditor shall be rotated on a periodic basis. Contracts for independent auditing services shall be awarded for an initial period 16 of three years, with the option of extending up to two subsequent years (for a maximum total of five), unless otherwise determined by the Board. 2.33 Consultants A. The Board may from time-to-time select, retain, compensate, define the scope and efforts of, and dismiss consultants to support or provide information to the Board in developing policy level decisions or in implementing Board actions. In doing so, the Board shall delegate to the General Manager the responsibility for day-to-day direction of the work of the consultant. COMMITTEES 2.34 From time to time, the Board may establish committees, whether standing or ad hoc, to assist with the performance of its duties and policy advice. In keeping with the Board’s broader focus, committees shall not direct the implementation of District programs and projects. Committees shall assist the Board by preparing policy alternatives and implications for Board consideration. Committees shall not act on the Board’s behalf unless authorized by a majority vote of the Board. Said authorization shall not conflict with the duties assigned to the General Manager. In order to preserve the organizational structure and support the chain of command, committees shall not exercise authority over staff or staff operations. 2.35 The purpose of each established committee shall be reviewed by the Board on an annual basis, prior to making Director assignments, in order to determine their continuing relevance. 2.36 The Board previously adopted the Fair Political Practices Commission’s (FPPC) Form 806 as the District’s official form for reporting public official appointments and has directed staff to post a completed form on the District’s website in accordance with the requirements set forth in FPPC Regulation 18705.5. 3.0 DIRECTORS’ COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENT Directors’ Compensation 3.1 As of January 23, 2003, compensation for members of the Board shall be $150 per day for each day’s attendance at meetings of the Board and other meetings attended at the request of the Board (GC § 53232.1, WC § 20201, Ord. 03-01), including reasonable and necessary travel time (see Appendix 1). Compensation for any type of service shall not exceed ten days in any calendar month (WC § 20202, Ord. 03-01). 3.2 Director attendance at events sponsored by the following organizations shall be preauthorized in consideration of the current budget: A. Association of California Water Agencies (ACWA) B. Association of California Water Agencies – Joint Powers Insurance Authority (ACWA-JPIA) C. American Water Works Association (AWWA) D. California-Nevada Section of American Water Works Association (CA-NV AWWA) 17 E. California Association of Sanitation Agencies (CASA) F. City, County and State Governmental Agencies (Including meetings with elected/appointed officials and staff.) G. Colorado River Water Users Association (CRWUA) H. California Special Districts Association (CSDA) I. Independent Special Districts of Orange County (ISDOC) J. Orange County Local Agency Formation Commission (OC LAFCO) K. Municipal Water District of Orange County (MWDOC) L. Metropolitan Water District of Southern California (MWD or MET) M. Orange County Sanitation District (OCSD) N. Orange County Water Association (OCWA) O. Orange County Water District (OCWD) P. Special District Leadership Foundation (SDLF) Q. Urban Water Institute (UWI) R. Water Advisory Committee of Orange County (WACO) 3.3 Director attendance at events sponsored by any other organization than those listed above requires preapproval or ratification by a majority vote of the Board in order to be considered as an activity for the purposes of compensation. 3.23.4 Directors shall complete an Activity Report and Compensation Form (see Exhibit C) on a monthly basis. Directors have until the 15th day of the following month to file said reports with the General Manager or his/her designee. If an activity report is not returned by this deadline, no compensation shall be paid to the Director for that reporting period. 3.33.5 All activity reports shall be reviewed and approved by the President or the Vice President. 3.43.6 Increases in compensation are limited to five percent for each calendar year following the operative date of the last adjustment (Ord. 03-01, WC § 20202). The Board shall consider its compensation rate following the reorganization meeting held at the first regular meeting of the Board in December of each year. If the Board recommends an increase in the amount of compensation, an Ordinance shall be considered and adopted by the Board according to the following procedures: A. A public hearing shall be held prior to adoption of the Ordinance (WC § 20203). B. Notice of the hearing shall be published in a newspaper of general circulation once a week for two successive weeks prior to the public hearing (GC § 6066). C. The Ordinance shall become effective 60 days from the date of its final passage (WC § 20204). 3.53.7 The District does not provide any of its Directors with loans. Benefits 3.63.8 Directors and their eligible dependents may participate in the health benefits plans provided by the District, including medical, dental and vision plans. The District shall pay the premium amount for Directors and 2/3 of the premium amount for eligible dependents. Directors are responsible for paying the balance of the premium amount for eligible 18 dependents. Health benefits provided to Directors shall not be greater than the most generous plan being offered to any group of District employees. A Director is also eligible for District-provided post-service health benefits if the following conditions are satisfied: the Director’s term began before January 1, 1995 and continued uninterrupted until on or after May 27, 2010; and the Director began receiving health benefits from the District before January 1, 1994. The rate of accrual for post-service health benefits is one year of benefits for each three years of service to the District as a Director. In addition to the terms and conditions provided herein, any terms or conditions set forth in the personnel rules of the District that are applicable to retiree health benefits shall also apply to post- service health benefits for Directors, except those conditions relating to good standing and adequate notice of retirement. Directors are also eligible for District-provided Group Life insurance and Accidental Death and Dismemberment insurance in amounts up to $10,000 each. Additionally, Directors may elect to participate in the District’s deferred compensation plan. Enrollment in any of the above benefits plans is subject to the rules and restrictions of the plans. Travel Expense Reimbursement 3.73.9 Directors are encouraged to attend conferences, conventions, meetings, symposiums, intergovernmental meetings and legislative sessions relating to the mission of the District. Directors shall receive reimbursement or payment of expenses, according to District rules, incurred in the performance of their duties as required or authorized by the Board (GC § 53232.2, Ord. 03-01). Attendance at an event must be preapproved or ratified by a majority vote of the Board in order to be considered as an activity for the purposes of compensation and payment or reimbursement of travel expenses. Directors’ rates for reimbursement and payment of travel expenses shall not be greater than rates specified for District employees. 3.83.10 Directors shall be reimbursed for actual costs to attend activities, not to exceed: Flight: $350 Per Round Trip (Most Economical Class) Car Rental: $50 Per Day (Economy to Standard Size Vehicle) Lodging: $275 Per Night Meals: $75 Per Day Actual and Necessary Expenses: $30 Per Day 3.93.11 Expenditures for lodging, meals, and transportation shall provide for reasonable and necessary comfort and convenience. Directors shall be mindful that public funds are being spent and that only a reasonable and necessary level of expense is warranted. 3.103.12 When available, Directors must use coach class for commercial travel and group/government rates for lodging. If the group/government rate is not available, the reimbursement cannot be more than the amount set forth above. In the event a more expensive class of transportation is used, the reimbursable amount shall be limited to the cost of the most economical class of transportation available as identified above. 3.113.13 If an expense does not fall within the reimbursement rates identified in Section 9.12, it must be preapproved or ratified by a majority vote of the Board in a public meeting (GC § 53232.2(f)). 19 3.123.14 Meal expenses include the reasonable and necessary costs of meals and beverages, not including alcoholic beverages. Meal expenses shall be reimbursed on a daily basis not to exceed $75 per day. Meal expenses for partial days shall be reimbursed on a meal by meal basis as follows: $15 for breakfast, $25 for lunch, and $35 for dinner. Any amount spent over the daily or partial day reimbursable amounts set forth in this section may not be deducted from another day’s reimbursable amount during that same activity. Additionally, any amounts not spent over the daily or partial day reimbursable amounts set forth above may not be added to another day’s reimbursable amount during that same activity. No reimbursement shall be provided for alternative meals when the District has paid for the cost of the activity including any incorporated meals. Attendance at receptions before dinner shall not be considered a meal. 3.133.15 Eligible reimbursable amounts as identified above, do not include the cost of taxes or gratuities. 3.143.16 Actual and necessary expenses include tips for porters, baggage carriers, bell hops, and housekeepers. This does not include the cost of laundry, cleaning or pressing of clothes, or telephone calls. 3.153.17 For travel by personal vehicle, mileage shall be reimbursed at the IRS rate in effect at the time of travel. Personally owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. In no case shall the amount paid for mileage reimbursement for use of a personally owned vehicle used for travel in lieu of air travel exceed the cost of coach class or equivalent airfare. 3.163.18 The District shall not incur any costs for a spouse, or other accompanying person. 3.173.19 In order to obtain reimbursement tor qualified expenses, the following procedures must be followed: A. Directors shall submit a completed Travel Expense Reimbursement Form (see Exhibit D) for conference, convention or symposium attendance, together with all original itemized receipts and corresponding route maps, within 30 calendar days of when the expense was incurred (GC § 53232.3). B. Directors shall also submit a completed Meeting and Mileage Expense Reimbursement Form (see Exhibit E) for local meeting attendance, together with all original itemized receipts and corresponding route maps, within 30 calendar days following the end of each month. C. If the Director does not file an expense report within the above listed deadlines, the District will not reimburse mileage or out-of-pocket expenses. D. For any activity that the District prepays expenses, the Director is still required to file an expense report to ensure that any expenses prepaid by the District are properly accounted for. Staff shall assist Directors with these reports as needed. To enforce the timely filing of expense reports the District may, by majority vote of the Board, stop prepaying conference and travel expenses. 20 E. All expense reimbursement requests shall be reviewed and approved by the Finance Manager or the General Manager. Any requests for reimbursement that fall outside the limitations contained in this policy shall be reviewed and approved by the President or Vice President. F. With the exception of mileage reimbursement, any expense shown on the form must have a corresponding, attached original itemized receipt or other verification document. G. If a receipt is lost or not provided, the Director must submit a completed Missing Receipt Affidavit Form (see Exhibit F) as substantiation of the expense. H. Directors shall also submit a completed Miscellaneous Gratuities Form (see Exhibit G) for such expenses paid in cash without a receipt. I. All forms, receipts and verification documents shall be public documents subject to redaction of any confidential information, such as credit card numbers. 3.183.20 A Director shall not attend a conference or training event for which there is an expense to the District if it occurs after the Director has announced his/her pending resignation, or if it occurs after an election in which it has been determined that the Director will not retain his/her seat on the Board. A Director shall not attend a conference or training event when it is apparent that there is no significant benefit to the District. 3.193.21 Directors shall provide a brief report about the activity at the next regular Board meeting following attendance (GC § 53232.3(d)). Said report shall detail what was learned at the session(s) that will be of benefit to the District. Materials from session(s) may be delivered to the General Manager for inclusion in the District’s library for future use. Communications Expense Reimbursement 3.203.22 In order to facilitate operational efficiency and reduce expenses, the Board has determined that it is in the best interests of the District to have all agendas and other District information distributed to the Board via electronic means instead of providing paper copies whenever possible. While Director participation in and support of this initiative is encouraged, it is not required. Participating Directors are eligible for the reimbursement of expenses associated with the purchase of necessary electronic equipment and related items provided: A. The Director is an elected official of the District with more than two months remaining in his/her current term of office. B. The Director has submitted a completed Communications Expense Reimbursement Form (see Exhibit H) in accordance with established procedures. C. The District shall provide reimbursement, up to $1,000 every four years (or sooner in the event of loss or theft), for the cost of electronic equipment and related items 21 of the Director’s choosing plus a monthly allowance of $25 for a data plan relating to e-mail/internet access, etc., as applicable. Qualifying electronic equipment and related items shall include tablet PCs, laptop computers, tablet PC/laptop covers or cases, protective screen wraps, extended warranties, and downloadable applications specific to the conduct of District business, such as word processing, spreadsheet or PDF annotation applications. D. Expenses that are not reimbursable include, but are not limited to, gift wrapping, engraving, downloadable applications (other than those used specifically for conducting District business) and additional adaptors. E. One hundred percent of the electronic equipment and approved itemized expenses reimbursed shall be reported on the Director’s Form W-2 as taxable income. In providing this information, the District is not offering tax advice. Directors having questions concerning the tax implications of electronic communications reimbursement benefits are urged to contact the Internal Revenue Service or other experts in tax law. 3.213.23 Reimbursements shall be processed when proof of purchase and original itemized receipts are submitted by the Director along with a completed form within 30 days of purchase. 3.223.24 Failure to submit a completed form within this time frame shall result in a denial of the Director’s request for reimbursement of the expense. A. The electronic equipment and related items for which reimbursement is provided shall become the property of the Director and all maintenance is the sole responsibility of the Director. B. Notwithstanding the foregoing, staff may, from time to time as deemed necessary, provide paper copies of District information to Directors and such provision of paper copies shall not affect the reimbursement of expenses as provided in this section. 3.233.25 Should a Director experience a loss or theft of electronic equipment for which the full or partial expense was reimbursed by the District, said Director shall submit a written statement and/or police report to the Finance Manager or the General Manager for auditing purposes prior to requesting reimbursement of expenses for the purchase of replacement equipment. Requests for reimbursement of expenses for replacement equipment shall be subject to the limitations and requirements as set forth above. 3.243.26 All communications expense reimbursement requests shall be reviewed and approved by the Finance Manager or the General Manager. Any requests for reimbursement that fall outside the limitations contained in this policy shall be reviewed and approved by the President or Vice President. Disclosure of Expenditures/Reimbursements 3.253.27 A full accounting of expenditures of public funds under this policy shall be made and become part of the records of the District. 22 3.263.28 All reimbursements paid by the District of at least $100 for each individual charge for services or product received, shall be disclosed in an annual report following the end of each fiscal year. Reimbursement of an individual charge includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee paid to any Director. This report shall be made available for public inspection upon request. 3.273.29 All travel expenses and reimbursements paid by the District on behalf of a Director shall be disclosed in a quarterly report and provided to the Board for review at a regular meeting. BOARD MEETINGS, GENERAL All meetings of the Board shall be held at the District’s Administration Building located at 1717 East Miraloma Avenue, Placentia, California. All meetings of the Board shall be open and public and all persons are invited to attend (GC § 54953(a), WC § 30529) . The District shall continue to implement all applicable requirements of the Ralph M. Brown Act (GC § 54950 et seq.) to ensure transparent, open and responsive government. 3.283.30 Regular Meetings A. All regular meetings of the Board shall be held on the second and fourth Tuesday of each month. If these days happen to coincide with a holiday designated by law or otherwise recognized by the District, the meeting shall be rescheduled to a date and time as determined by a majority vote of the Board. Closed Sessions scheduled to occur on the same day as a regular meeting will generally commence at 5:30 p.m. or 6:00 p.m. depending on time requirements and may be noticed separately as a special meeting. Regular meetings shall commence at 6:30 p.m. Any member of the Board may make a motion to complete any item under discussion during meetings lasting more than four hours from the time of commencement. All remaining items on the agenda which have not been acted upon shall be continued to the next regular meeting or as specified by the Board. 3.293.31 Special Meetings A. Special meetings of the Board may be called by the President or a majority of the Board. Whenever a special meeting of the Board is called, notice in writing shall be delivered by the Secretary to each Director, and if notice is requested in writing, to each local newspaper of general circulation and radio or television station. The notice shall be delivered personally or by any other means and shall be received at least 24 hours in advance of the meeting. The notice shall specify the time and place of such meeting and the purpose of the meeting. The written notice may be dispensed with as to any Director who, at or prior to the time the meeting convenes, files with the Secretary a written waiver of notice. The written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. 3.303.32 Emergency Meetings 23 A. In the event of an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of public facilities, the Board may hold an emergency special meeting without complying with the 24 hour notice required in Section 10.2 herein. An emergency situation means a crippling disaster which severely impairs public health, safety, or both. The President, or the Vice President in the absence of the President, or the General Manager, may determine if an emergency situation exists. B. Whenever an emergency meeting of the Board is called, notice in writing shall be delivered by the Secretary to each Director, and if notice is requested in writing, to each local newspaper of general circulation and radio or television station. The notice shall be delivered personally or by any other means and shall be received at least one hour in advance of the meeting. In the event that telephonic services are not functioning, the notice requirement of one hour is waived. The Secretary shall then notify such newspapers, radio stations, or television states of the fact of the holding of the emergency meeting, and of any action taken by the Board, as soon after the meeting as possible. C. No Closed Session may be held during an emergency meeting, and all other rules governing special meetings shall be observed with the exception of the 24 hour notice. The minutes of the emergency meeting, a list of persons the Board or designee notified or attempted to notify, a copy of the roll call vote(s), and any actions taken at such meeting shall be posted for a minimum of ten days in the District office as soon after the meeting as possible. BOARD MEETINGS, AGENDAS 3.313.33 Agendas A. Any matter which is to be considered for approval or adoption by the Board at the meeting must be submitted to the Board as part of an agenda (GC § 54950 et seq.). All ordinances, resolutions and contracts shall be reviewed by legal counsel and approved as to form and legality prior to submission for consideration by the Board. B. The Secretary shall, under direction of the General Manager, prepare an agenda of such matters according to Section 11.2 herein, entitled “Order of Business”, including a description of the items to be considered or discussed and, where deemed appropriate by the General Manager, a staff recommendation for each item. C. A copy of the draft agenda for every meeting of the Board shall be provided to the Presiding Chair (should one be appointed) for review prior to posting by the Secretary. D. A copy of the finalized agenda for every meeting of the Board shall be posted at least 72 hours prior to the meeting in a place that is freely accessible to members of the public. Once posted, copies of the complete agenda and supporting materials shall be available for public inspection during business hours at the District office and on the District’s website. 24 E. Agendas for all special meetings of the Board shall be posted in the same manner at least 24 hours prior to the meeting. The agenda for a special meeting of the Board is limited to only those matters specifically set forth in the purpose of the call for the special meeting. No other business shall be considered at a special meeting. F. All agendas and other District information shall be distributed to the Board via electronic means instead of providing paper copies. Director incurred expenses for electronic equipment and related items required for receiving, accessing and printing all agendas and information shall be reimbursed in accordance with Section 9.0 herein. G. A copy of each agenda for a meeting of the Board shall be mailed to members of the public so requesting them in writing. Any member of the public requesting a copy of a complete agenda and supporting materials shall be charged, in advance, for reproduction costs plus mailing expenses. Exceptions are public agencies, members of the public who request a copy of the agenda without supporting materials, and individuals requesting a copy of an agenda, with or without supporting materials, that contains a specific matter involving that individual as a party. H. All information made available to the Board (except confidential information allowed by law per legal counsel authority) shall be available for public review prior to the Board meeting. I. Any Director may contact the General Manager and request an item to be placed on the agenda no later than 12:00 p.m. the day before an agenda is scheduled to be closed. In general, all agendas will be closed on Wednesday of the week prior to the meeting date. J. Any member of the public may request that a matter directly related to District business be placed on the agenda of a regularly scheduled meeting of the Board, subject to the following conditions: 1. The request must be in writing and submitted to the General Manager together with supporting documents and information, if any, at least 10 days prior to the date of the meeting. 2. The General Manager shall be the sole judge of whether the public request is or is not a “matter directly related to District business” and if the matter is to be placed on a future agenda. The public member requesting the agenda item may appeal the General Manager’s decision at the next regular meeting of the Board. Any Director may request that the item be placed on the agenda of the Board’s next regular meeting. 3. No matter which is legally a proper subject for consideration by the Board in Closed Session shall be accepted. 25 4. The Board may place limitations on the total time to be devoted to a public request issue at any meeting, and may limit the time allowed for any one person to speak on the issue at the meeting. K. Any member of the public may request to present electronic material (such as a PowerPoint presentation) directly related to District business during Public Comments or in relation to a specific agenda item during a regularly scheduled meeting of the Board, subject to the following conditions: 1. The request must be made in writing and submitted to the General Manager together with all electronic materials at least 12 hours prior to the meeting. 2. The General Manager shall be the sole judge of whether the electronic material is or is not a “matter directly related to District business” and if the material is to be presented during a regularly scheduled Board meeting. The public member requesting to present the electronic material may appeal the General Manager’s decision at the next regular meeting of the Board. Any Director may request that the electronic material be presented at the Board’s next regular meeting. 3.323.34 Order of Business A. Upon convening the meeting at the hour set on the date of each meeting, the members of the Board, the Secretary and General Manager of the District shall take their regular stations in the Board Meeting Room, and the business of the Board shall be taken up for consideration. The Presiding Officer shall immediately call the Board to order and lead in the Pledge of Allegiance to the flag of the United States of America. B. Before proceeding with the business of the Board, the Secretary shall call the roll of the Directors. The Secretary shall enter the names of all Directors, Officers, staff members and visitors (if known) present in the Minutes of the meeting. C. If a quorum is present, the Secretary shall so advise the Presiding Officer. If a quorum is not present, the Secretary may adjourn the meeting to a time certain for the purpose of obtaining a quorum. Any such reconvened regular meeting shall not constitute a special meeting. In the event a regular or special meeting of the Board is adjourned to a time and date certain, the Secretary shall post a notice of adjournment in a place that is freely accessible to members of the public within 24 hours of such adjournment. D. Three of the five Directors elected or appointed to the Board shall constitute a quorum for any meeting of the Board. Irrespective of the number of Board members constituting a quorum for a particular meeting, a majority vote of the Board shall consist of at least three votes. No ordinance, resolution or motion shall be passed or become effective without the affirmative votes of at least a majority of the members of the Board. 26 E. Directors may attend Board and Committee meetings via teleconference provided the meeting has been duly noticed as a teleconference meeting in compliance with requirements of the Ralph M. Brown Act (GC § 54950 et seq.). Duly noticed teleconference locations may be outside the District’s jurisdictional boundaries, but for purposes of establishing a quorum, at least three Directors must be participating in the meeting from within the District’s jurisdictional boundaries. A Director is entitled to participate fully in the meeting and vote from a teleconference location, and all votes shall be taken by roll call. F. The Presiding Officer may, on his/her own initiative or at the request of any two Directors, take any item of business out of order, either as to the general order of business or as to the specific agenda as the Secretary has prepared it. G. The Board may take action on items not appearing on the posted agenda for regular meetings under the following circumstances: 1. Upon determination by a majority vote of the Board that an emergency, work stoppage or crippling disaster exists that impairs public health and/or safety. 2. Upon determination by a two-thirds vote of the Board, or by all Directors if only three are present, that a matter came to the attention of the District subsequent to posting the agenda that needs immediate action by the Board. 3. When an item was posted on the agenda of, and was continued from, a meeting held not more than five days earlier. H. The Order of Business taken up for consideration by the Board is generally organized so that high priority matters are addressed at the beginning of the meeting, and is generally in the following sequence: 1. Introductions and Presentations 2. Public Hearings 3. Consent Calendar 4. Action Calendar 5. Discussion Calendar 6. Informational Reports and Other Business 7. Closed Session(s) 8. Adjournment I. The Public Hearings portion of the agenda, if any, shall be held at the time specified in the legal notice advertising such hearing. In general, the order of procedure for a public hearing is as follows: 1. Opening of Hearing by Presiding Officer 2. Verification of Notice of Hearing Provided by Board Secretary 3. Reports by General Manager, Staff and/or Consultant 4. Comments from the Public Speaking in Favor and/or Against the Issue 5. Receipt of Written Communications from the Public 27 6. Continue or Closing of Hearing by Presiding Officer 7. Questions to Staff and Board Discussion 8. Consideration of Action by the Board J. The Consent Calendar portion of the agenda shall be consideration, in a single action, of items determined by the Secretary to be routine matters, status reports or documents implementing previous Board instructions. If a Director has a question or wishes to discuss a Consent Calendar item, they may do so without formally removing the item from the Consent Calendar. If, after such discussion, a Director, staff member or member of the public has a question or wishes to address a Consent Calendar item further, they may request that the item be removed for further discussion. The Presiding Officer shall immediately grant such requests and transfer the removed item to the Action Calendar for later discussion. Items removed from the Consent Calendar for discussion shall be acted upon separately. All items remaining on the Consent Calendar shall be considered for approval by a single motion. Examples of matters appearing on the Consent Calendar may include, but are not limited to: 1. Minutes of Previous Board Meetings 2. Approval to Pay Warrants 3. Routine Environmental Assessments 4. Approval of Routine Terms and Conditions for Water and/or Sewer Service 5. Approval of Change Orders (W ith a dollar value within the General Manager’s authority consistent with the approved purchasing policy.) 6. Approval of Contracts (For projects identified in the adopted budget.) 7. Final Acceptance of Facilities 8. Disposition of Liability Claims 9. Other Routine Administrative Matters K. The Action Calendar portion of the agenda shall include items requiring staff presentation and/or Board discussion prior to formal Board action. Items shall generally be listed in order of priority and with items of a similar nature grouped together. Items may be addressed out of order upon request and with the consent of the Presiding Officer. L. The Discussion Calendar shall include matters that do not require Board action or that cannot reasonably be expected to result in Board action at that meeting. Matters appropriate for the Discussion Calendar include technical presentations to the Board, review of drafts of proposed policies and, in general, items for which District staff seeks the advice and counsel of the Board. When time permits, the Board believes the District’s best interests are served by discussing more complex matters at one meeting and considering formal action on them at a subsequent meeting. M. The Informational Reports and Other Business portion of the agenda provides an opportunity for the presentation of reports by the General Manager, reports from Committees, reports by Directors who have attended outside meetings, and general comments by Directors. It also provides an opportunity for the Board to schedule future meetings and assignments on the Board’s activity calendar. 28 N. Closed Sessions are strictly limited to the open meeting exceptions as defined in the Ralph M. Brown Act (GC § 54950 et seq.). At times, during Board meetings, the Board may adjourn into Closed Session to discuss personnel matters, real estate negotiations, existing or anticipated litigation or other matters as specified in the exceptions set forth in the Brown Act. Appropriate agenda descriptions are also required for Closed Session items. O. A motion to adjourn must be moved by a Director and seconded by another Director, and is subject to debate. No further business can be conducted after an affirmative vote to adjourn. P. The Board may adjourn any regular or adjourned regular meeting to a time and place specified in the motion of adjournment so approved by the Board. BOARD MEETINGS, MINUTES 3.333.35 The Secretary shall keep minutes of all Board meetings. Minutes are to record actions taken and meaningful discussion; they are not intended to be verbatim records. Members of the public requesting information about a meeting shall be encouraged to listen to the audio recording made of each meeting. Draft minutes shall be distributed to the Board for review and approval at the next regular meeting or as soon as possible thereafter. Minutes may be approved as part of the Consent Calendar. 3.343.36 The official minutes of all Board meetings shall be kept in a fire-proof vault or in fire-resistant locked cabinets at the District’s Administration office. An audio recording shall be made of all regular Board meetings, including public hearings, and retained for 30 days following the date the meeting minutes are approved by a majority vote of the Board. Video recordings of all regular Board meetings or public hearings shall be retained for a minimum of 30 days following the date of the meeting. BOARD MEETINGS, CONDUCT 3.353.37 Guidelines for Discussion These guidelines are intended primarily for those situations where discussion of an issue is taken up with considerable enthusiasm by several Directors and/or members of the general public, and it is necessary to formalize the meeting so that each Director, in due course, may be heard. A. The Presiding Officer shall decide, subject to a question of order by any Director, the degree of enforcement of these guidelines at any time during any meeting. B. The Board prefers a flexible form of meeting, believing that this enhances the decision-making process and therefore does not conduct its meetings with formal “rules of order” or parliamentary procedure. The Presiding Officer for each meeting has the responsibility to preserve order and decorum. If at any time, a Director believes order is not being maintained or that procedures being followed are not adequate for the decision-making process at hand, he/she shall call this fact to the attention of the Presiding Officer and request corrective action. If the corrective action taken by the Presiding Officer is not satisfactory, a motion for specific 29 corrective action may be made to the Board. In that event, a majority vote of the Board shall determine the action to be taken. C. A Director is disqualified from participating in the decision-making process if a financial interest in an item before the Board might interfere with the performance of duties in an impartial manner free from bias, as defined in Section 4.0 herein. If grounds for disqualification exist, the Director at issue shall announce prior to consideration of the matter that he/she has a conflict of interest (see Exhibit B), publicly identify the interest that gives rise to the conflict or potential conflict in sufficient detail to be understood by the public, recuse themselves from discussing and voting on the matter, and then leave the room until after the discussion, vote, and any other disposition of the matter is concluded. The Director shall not be counted toward achieving a quorum while the item is discussed. This rule applies when the item that gives rise to the disqualification is on the Consent Calendar except the Director at issue is not required to leave the room. Any Director unsure about whether a conflict of interest exists may request an opinion from legal counsel. D. The Presiding Officer may move, second or debate motions from the chair, subject only to such limitations of debate as may be imposed on all Directors, and shall not be deprived of any of the rights and privileges of a Director by serving as the Presiding Officer. The Presiding Officer may vote on all questions or motions before the Board, with his/her name being called last in a roll call vote. E. Any Director desiring to speak shall first address the chair. Upon recognition by the Presiding Officer, the Director may speak freely with respect to the matter then before the Board but shall confine his/her comments to the subject under discussion. Any Director, once recognized, shall not be interrupted except by a call to order from the Presiding Officer. If a Director is called to order, he/she shall cease speaking until the question or order is determined; if determined to be in order, they may proceed. F. Any Director moving the adoption or approval of a matter may call for the question. G. True motions to reconsider any Board action must be made at the same meeting at which the original action was taken; however, any Director may make any other type of motion at any meeting. H. All motions shall be adopted by voice vote unless otherwise required by law. The Secretary shall record in the Minutes any dissenting and abstaining votes, or disqualification from voting due to a conflict of interest. I. Unless a Director declares a conflict of interest or abstains, silence shall be recorded in the Minutes as an affirmative vote. J. The Secretary shall enter into the Minutes for each meeting a record of all Board actions and a summary of the discussion on each matter considered by the Board. 30 K. Any person desiring to speak shall first address the chair. Upon recognition by the Presiding Officer, the speaker shall state his/her name, representation and/or affiliation and the matter on which he/she wishes to comment. If the matter relates to an item on the current agenda, the Presiding Officer shall recognize the person and invite their comment when the item is considered. If the matter does not relate to an item on the current agenda, the Presiding Officer shall determine whether and when to allow the comment. Comments are limited to matters of public interest within the jurisdiction of the District, and comments must be no more than three minutes in length unless a time extension is granted by the Presiding Officer. A maximum of 20 minutes shall be allotted for each subject matter pursuant to the discretion of the Presiding Officer. No action shall be taken on matters not appearing on the posted agenda for that meeting, although Directors may respond briefly to public comments. L. In the event any person or group of people makes personal, impertinent or slanderous remarks or becomes boisterous while attending a District Board meeting, the Presiding Officer shall call for order. If the person or group refuses to comply with the Presiding Officer’s request for order, the Presiding Officer may declare a recess and summon a law enforcement officer to remove the person(s) from the room. Once the Presiding Officer takes this action, permission for such person(s) to remain at the meeting requires a motion approved by a majority vote of the Board. When, in the judgment of the Presiding Officer, order is restored, the meeting shall reconvene and continue with the Board’s business. BOARD ACTIONS AND DECISIONS 3.363.38 The Board shall act only by Ordinance, Resolution or Motion. The Presiding Officer shall state each matter as it is presented for consideration by the Board and shall announce each decision of the Board. 3.373.39 Ordinances are an authoritative decree or municipal regulation of the District. Ordinances shall relate to no more than one subject, which shall be clearly expressed in the title of the ordinance. No ordinance, or section thereof, shall be amended or repealed unless the new ordinances contains the title of the ordinance or section amended or repealed. When applicable, ordinances shall be identified to the Board as replacements to existing ordinances or sections thereof. Ordinances must be moved and seconded and shall be adopted only by a roll call vote. The Secretary shall record the names of all Directors and identify them as voting Aye, No, Abstain, or Absent on each adopted ordinance. All ordinances shall be signed by the Presiding Officer and attested by the Secretary. Ordinances shall be in full force and effect upon adoption unless otherwise provided by law, and the Secretary shall be responsible for compliance with any and all legal requirements for publication of the ordinance. 3.383.40 Resolutions are a formal expression of opinion, will or intent of the Board. Resolutions must be moved and seconded and shall be adopted only by a roll call vote. The Secretary shall record names of all Directors and identify them as voting Aye, No, Abstain, or Absent on each adopted resolution. All resolutions shall be signed by the Presiding Officer and attested by the Secretary. 31 3.393.41 Motions are proposals, made by a Director during a Board meeting, for action, inclination of the mind or will, or a formal proposal made in a deliberative manner by the Board. Every motion considered by the Board must be moved by a Director, seconded by another Director and is subject to debate. 3.403.42 Except where action is taken by the unanimous vote of all Directors present and voting, the Secretary shall record the names of all Directors and identify them as voting Aye, No, Abstain or Absent upon the passage of all ordinances, resolutions, or motions and enter them upon the Minutes of the Board. EXHIBITS AND APPENDIXES Exhibits A. Acknowledgement B. Sample Conflict of Interest Declarations C. Activity Report and Compensation Form D. Travel Expense Reimbursement Form E. Meeting and Mileage Expense Reimbursement Form F. Missing Receipt Affidavit Form G. Miscellaneous Gratuities Form H. Communications Expense Reimbursement Form Appendixes 1. Setting Compensation for Members of the Board (Ord. 03-01) YORBA LINDA WATER DISTRICT Acknowledgement Form By signing below, the Director hereby acknowledges and agrees that he/she: a)Has read this manual and understands its expectations; b)Will comply with all local, state, and federal laws and regulations as an inherent quality of ethical behavior; c)Pledges to uphold a standard of integrity and competence beyond that required by law; d)Will treat all persons, claims and transactions in a fair and equitable manner; and e)Fully understands they are subject to the Board’s admonition, sanction and censure, depending on their ability to exemplify the ethical and professional behavior promoted by this manual. Director’s Name (Printed): Date: ________________________________________ Director’s Signature: ________________________________________ Distribution: Original to Personnel File Copy: Director Exhibit A YORBA LINDA WATER DISTRICT Sample Conflict of Interest Declarations Generally, a Board member has a financial interest in a matter if it is reasonably foreseeable that the Board’s decision would have a material financial effect (as defined by the Fair Political Practices Commission regulations) that is distinguishable from its effect on the public generally, on the official, a member of his/her immediate family, or on any of the following: •A business entity in which the Board member has a direct or indirect investment worth $2,000 or more; •A business entity in which the Board member holds a position as a director, officer, partner, trustee, employee, or holds any position of management; •A source of income (except gifts or loans by a commercial lending institution made in the regular course of business on terms available to the public without regard to official status), aggregating $500 or more in value provided, promised to, or received by, the Board member within 12 months prior to the time a decision is made; •A source of gifts to the Board member amounting to the annual gift limit or more within 12 months prior to the time a decision is made; and •Real property in which the Board member has a direct or indirect interest worth $2,000 or more. Below are some sample conflict of interest declarations as provided by the District’s legal counsel: 1.Decision affects business entity in which a Director has an investment: I declare that I have a conflict of interest on Agenda Item No. because I have an investment in Name of Company . 2.Decision affects business entity in which a Director holds a position: I declare that I have a conflict of interest on Agenda Item No. because I hold a position at Name of Company , a business that Description of Business Activities . 3.Decision affects a source of income/gift: I declare that I have a conflict of interest on Agenda Item No. because I have received income or a gift from Name of Source . 4.Decision affects real property in which the Director has a direct/indirect interest: I declare that I have a conflict of interest on Agenda Item No. because I own real property, located at Location which may be affected. NOTE: If subject property is the Director’s primary residence simply state that “the property is a residence”. 5.Decision related to Closed Session agenda item: I recuse myself from participating in Agenda Item No. due to a conflict of interest under Government Code Section 87100. Exhibit B YORBA LINDA WATER DISTRICT Directors Activity Report and Compensation Form Name (Printed): NOTE: Rate is $150.00 per day. Month: For Admin Use Only Date Meeting Description Code Rate Total Compensation Amount: $ Director’s Signature: Date: R = YLWD Regular BOD Mtg | S = YLWD Special BOD Mtg | C = YLWD Committee Mtg | O = Other Mtg, Conference, or Event Fax to 714-701-3028 or scan and e-mail to the Executive Assistant. Exhibit C Page 1 of 2 Original itemized receipts and Name:corresponding route maps must be attached. Conference Name: Destination/Location: Purpose of Trip: Departure Date:Return Date: Travel Date Expense Paid Expense Paid Total Business By YLWD By Director Expenses Breakfast 0.00 Lunch 0.00 Dinner 0.00 Airfare 0.00 Lodging 0.00 Cab / Shuttle 0.00 Auto Rental 0.00 Fuel / Oil 0.00 Parking / Toll 0.00 Mileage 0.00 Misc / Tips 0.00 Conference Fee 0.00 Membership Fee 0.00 Total $0.00 0.00 0.00 $0.00 I hereby certify that the above expenditures represent cash spent for legitimate District business only and includes no personal items. Director's Signature:Date: Reviewer's Signature:Date: Itemized Expenses Total Due Director: YORBA LINDA WATER DISTRICT Travel Expense Reimbursement Form Exhibit D Page 2 of 2 Original itemized receipts and Name:corresponding route maps must be attached. Mileage Date Miles 0.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total $0.00 Misc / Tips Date Amount Total $0.00 YORBA LINDA WATER DISTRICT Travel Expense Reimbursement Form Destination Description Exhibit D TOTAL EXPENSES:$0.00 Meeting and Mileage Expense Reimbursement Form Name: Month:Current Rate =0.54 Date Purpose Miles Meals Parking Other 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Total Miles:0 TOTALS:$0.00 $0.00 $0.00 $0.00 Director's Signature Date Original itemized receipts and corresponding route maps must be attached. Reviewer's Signature Date YORBA LINDA WATER DISTRICT Location Exhibit E YORBA LINDA WATER DISTRICT Missing Receipt Affidavit Form Please retain this form with the District’s financial records in case of an audit. Name (Printed): I certify that I made the purchase shown below for District purposes but do not have a receipt because (check all that apply): Vendor did not provide a detailed receipt. I had a receipt but cannot locate it. I have a receipt, but it is not readable (e.g. not in English and/or not legible). This document is provided in order to describe the items purchased. Order was placed via telephone, fax, or internet, and vendor has not supplied an invoice. Vendor Name City Date of Purchase Detailed Description of Purchase (Attach additional sheets if necessary.) Item Amount Total Purchase Amount $ This document is in lieu of an invoice or receipt for this transaction. I certify that all items listed above (and on the attached, if applicable) were purchased and received for District business. Director’s Signature: Date: NOTE: All information is required and must be typed or printed in ink. Use one affidavit per receipt. Exhibit F YORBA LINDA WATER DISTRICT Miscellaneous Gratuities Form Please retain this form with the District’s financial records in case of an audit. Name (Printed): Conference/Event Name: The following gratuities were paid in cash and are directly related to my attendance at the above listed conference/event: Date Location Purpose Amount Total Amount $ This document is in lieu of an invoice or receipt for this/these transaction(s). I certify that all items listed above (and on the attached, if applicable) were for District business. Signature: Date: Exhibit G YORBA LINDA WATER DISTRICT Communications Expense Reimbursement Form Director’s Name (Printed): The purpose of this form is to identify and provide proof of purchase and original itemized receipts for the reimbursement of Director incurred expenses for obtaining electronic equipment and related items in order to receive and access agendas and other District information distributed to the Board via electronic means. NOTE: One hundred percent (100%) of the electronic equipment and approved itemized expenses reimbursed shall be reported on the Director’s Form W-2 as taxable income. Date Description Amount Total Expenses: $ Less Paid by YLWD: $ Total Reimbursement Amount: $ I agree that all expenses submitted on this form are for District purposes only. I also agree that it is my responsibility to provide proof of purchase and original itemized receipts along with this completed form to the Finance Manager or the General Manager within 30 days of purchase. Director’s Signature: Date: Reviewer’s Signature: Date: Exhibit H Appendix 1 ORDINANCE NO. 03-01 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING COMPENSATION FOR MEMBERS OF THE BOARD OF DIRECTORS WHEREAS, The Yorba Linda Water District is organized and operates under authority of the County Water District Act, Division 12, commencing with Section 30,000 of the California Water Code; and WHEREAS, Water Code Section 20202, permits water districts, as defined in Section 20200, which includes the Yorba Linda Water District,to increase compensation of members of the Board of Directors in an amount in excess of$100 per day for each day's attendance at Board meetings or each day's service as a Director at the Board's request, not to exceed ten day's per calendar month; and, WHEREAS, the increase in compensation authorized pursuant to Section 20202 is limited to five percent for each calendar year following the operative date of the last adjustment; and WHEREAS, the Board of Directors of the Yorba Linda Water District, by action taken in February, 1991 set the daily compensation under Water Code Section 30507 at $125 for Board and Board Committee meetings and $50 for other service rendered at the request of the Board; and WHEREAS, the Board of Directors of the Yorba Linda Water District has conducted a public hearing upon notice pursuant to Government Code Section 6066 as required by Water Code Section 20203. NOW THEREFORE,the Board of Directors of the Yorba Linda Water District does hereby find, declare, order and ordain as follows: Section 1. The matters set forth in the recitals of this Ordinance are true and correct. Section 2. Upon and after the effective date of this Ordinance, compensation for members of the Board of Directors of the Yorba Linda Water District shall be $150 per day for each day's attendance at meetings of the Board of Directors and other meetings attended at the request of the Board of Directors. Compensation for any type of service shall not exceed ten (10) days in any calendar month. Members of the Board of Directors shall receive reimbursement or payment of expenses, according to District rules, incurred in the performance of each Director's duties required or authorized by the Board of Directors. Appendix 1 Section 3. This Ordinance shall become effective sixty(60) days after its adoption. PASSED AND ADOPTED this 23rd day of January, 2003 by the following called vote: AYES: Beverage, Mills, Summerfield NOES: Armstrong ABSENT: Korn ABSTAIN: 6?resident W. ummerh ld, , l JEST son, Secretary ITEM NO. 13.1 AGENDA REPORT Meeting Date: January 23, 2018 Subject:Meetings from January 24 - March 31, 2018 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Board of Directors Activity Calendar Event Date Time Attendance_By January MWDOC/OCWD Joint Planning Committee Wed, Jan 24 8:30 AM Jones/Miller/Nederhood OCSD Wed, Jan 24 6:00 PM Hawkins YL Planning Commission Wed, Jan 24 6:30 PM Hawkins (As Needed) ISDOC Thu, Jan 25 11:30 AM Hawkins/Jones/Nederhood Interagency Committee Meeting with MWDOC and OCWD Thu, Jan 25 4:00 PM Nederhood/Jones MWDSC Inspection Tour Fri, Jan 26 7:00 AM Miller MWDSC Inspection Tour Sat, Jan 27 7:00 AM Miller MWDSC Inspection Tour Sun, Jan 28 7:00 AM Miller February Board of Directors Workshop Meeting Thu, Feb 1 4:30 PM WACO Fri, Feb 2 7:30 AM TBD CSDA Special District Leadership Academy Mon, Feb 5 8:00 AM Jones ISDOC Executive Committee Tue, Feb 6 7:30 AM Nederhood CSDA Special District Leadership Academy Tue, Feb 6 8:00 AM Jones YL City Council Tue, Feb 6 6:30 PM Nederhood CSDA Special District Leadership Academy Wed, Feb 7 8:00 AM Jones MWDOC Wed, Feb 7 8:30 AM Nederhood UWI Conference Wed, Feb 7 1:00 PM Jones/Nederhood OCSD Operations Committee Wed, Feb 7 5:00 PM Hawkins OCWD Wed, Feb 7 5:30 PM Miller UWI Conference Thu, Feb 8 8:30 AM Jones/Nederhood UWI Conference Fri, Feb 9 8:30 AM Jones/Nederhood Board of Directors Regular Meeting Tue, Feb 13 6:30 PM LAFCO Wed, Feb 14 8:15 AM Nederhood (As Needed) YL Planning Commission Wed, Feb 14 6:30 PM Hawkins (As Needed) District Offices Closed Mon, Feb 19 7:00 AM YL City Council Tue, Feb 20 6:30 PM Jones MWDOC Wed, Feb 21 8:30 AM Nederhood/Jones OCWD Wed, Feb 21 5:30 PM Miller/Jones Board of Directors Workshop Meeting Thu, Feb 22 4:30 PM Board of Directors Regular Meeting Tue, Feb 27 6:30 PM OCSD Wed, Feb 28 6:00 PM Hawkins YL Planning Commission Wed, Feb 28 6:30 PM Hawkins (As Needed) March WACO Fri, Mar 2 7:30 AM TBD MWDSC Inspection Tour Tue, Mar 6 7:00 AM Hawkins/Jones/Nederhood ISDOC Executive Committee Tue, Mar 6 7:30 AM Nederhood YL City Council Tue, Mar 6 6:30 PM Hall MWDOC Wed, Mar 7 8:30 AM Nederhood/Jones OCSD Operations Committee Wed, Mar 7 5:00 PM Hawkins OCWD Wed, Mar 7 5:30 PM Miller/Jones Board of Directors Regular Meeting Tue, Mar 13 6:30 PM LAFCO Wed, Mar 14 8:15 AM Nederhood (As Needed) YL Planning Commission Wed, Mar 14 6:30 PM Hawkins (As Needed) Joint Committee Meeting with City of Yorba Linda Mon, Mar 19 4:00 PM Nederhood/Jones YL City Council Tue, Mar 20 6:30 PM Hawkins MWDOC Wed, Mar 21 8:30 AM Nederhood/Jones TENTATIVE - Board of Directors Workshop Meeting Wed, Mar 21 4:30 PM OCWD Wed, Mar 21 5:30 PM Miller/Jones Interagency Committee Meeting with MWDOC and OCWD Thu, Mar 22 4:00 PM Nederhood/Jones Board of Directors Regular Meeting Tue, Mar 27 6:30 PM OCSD Wed, Mar 28 6:00 PM Hawkins YL Planning Commission Wed, Mar 28 6:30 PM Hawkins (As Needed) ISDOC Thu, Mar 29 11:30 AM TBD BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING FY18 Annual Budget YTD Actuals thru December 2017 YTD % of Budget Water Revenue (Residential)14,278,688$ 8,990,345$ 62.96% Water Revenue (Commercial & Fire Det.)2,071,031$ 1,051,085$ 50.75% Water Revenue (Landscape/Irrigation)3,079,054$ 2,369,566$ 76.96% Service Charges 10,106,238$ 4,998,570$ 49.46% Other Operating Revenue 769,106$ 399,992$ 52.01% Total Operating Revenue 30,304,117$ 17,809,558$ 58.77% Revenue (Non-Operating): Interest 275,000$ 189,675$ 68.97% Property Taxes 1,710,000$ 935,723$ 54.72% Other Non-Operating Revenue 604,646$ 205,658$ 34.01% Total Non-Operating Revenue 2,589,646$ 1,331,056$ 51.40% Total Revenue 32,893,763$ 19,140,614$ 58.19% Expenses (Operating): Variable Water Costs (G.W., Import & Power) Water-Related Costs 11,240,088$ 7,352,454$ 65.41% Fixed Costs 1,443,355$ 436,555$ 30.25% Power-Related Costs 1,285,413$ 539,537$ 41.97% Variable Water Costs Related Expenses Total 13,968,855$ 8,328,545$ 59.62% Salary Related Expenses 8,859,867$ 4,033,037$ 45.52% PARS Contribution(s)-$ 230,267$ 0.00% Reduction for Capital Project Labor (215,000)$ (127,824)$ 59.45% Salary Related Expenses Total 8,644,867$ 4,135,480$ 47.84% Supplies & Services Communications 189,565$ 68,074$ 35.91% Contractual Services 519,653$ 201,837$ 38.84% Data Processing 235,322$ 102,409$ 43.52% Dues & Memberships 80,492$ 66,799$ 82.99% Fees & Permits 264,641$ 127,292$ 48.10% Insurance 263,506$ 122,775$ 46.59% Materials 797,347$ 360,103$ 45.16% District Activities, Emp Recognition 22,506$ 9,347$ 41.53% Maintenance 339,342$ 188,544$ 55.56% Non-Capital Equipment 104,678$ 55,402$ 52.93% Office Expense 39,662$ 17,189$ 43.34% Professional Services 650,108$ 252,294$ 38.81% Training 61,728$ 10,677$ 17.30% Travel & Conferences 102,493$ 26,638$ 25.99% Uncollectible Accounts 17,205$ 409$ 2.38% Utilities 158,100$ 90,309$ 57.12% Vehicle Expenses 286,812$ 130,947$ 45.66% Supplies & Services Sub-Total 4,133,160$ 1,831,045$ 44.30% Total Operating Expenses 26,746,883$ 14,295,070$ 53.45% Expenses (Non-Operating) Other Expense 15,220$ (2,091)$ -13.74% Total Non-Operating Expenses 15,220$ (2,091)$ -13.74% Total Expenses 26,762,103$ 14,292,979$ 53.41% Net Revenues 6,131,660$ 4,847,635$ 79.06% Less: Debt Service (Principal & Interest)2,729,799$ 1,919,271$ 70.31% Less: Committed Capital Expenditures (PayGo)2,635,755$ 853,937$ 32.40% Less: Special Item - Conservation Credit 1,105,809$ Less: Special Item - Rate Credit -$ 1,098,574$ 0.00% Transfer to/(from) Reserves 766,107$ (129,956)$ -16.96% Net -$ -$ Yorba Linda Water District Water Enterprise FY18 ProForma - Use of Funds December 2017 REVISED ITEM NO. 9.1. MATERIALS SUBMITTED BY: Kelly McCann MEETING DATE: January 23, 2018 Operations Department Project Updates for 2017 -2018 Presented by: John DeCriscio Operations Manager ITEM NO. 10.2. MEETING DATE: January 23, 2018 Project Overview: Budget $250,000 Repair Concrete Slabs for Chlorine injection pumps Design and build skid mounts for pumps Replace old plumbing and fittings Repair leak in chlorine product tank Replace chlorine generating cells and modify brine solution pump for easier servicing and maintenance Richfield Plant Chlorine System Refurbishment Concrete pump base failure Chlorine injection pumps, plumbing, and concrete to be refurbished New concrete slab with epoxy coating Newly refurbished pumps, plumbing, and pump skid 12,500 gallon Sodium Hypochlorite tank Chlorine Generation Cells to be replaced Project Status: Budget Spent to Date $28,978 Repair Concrete Slabs for Chlorine injection pumps Design and build skid mounts for pumps (One Completed) Replace old plumbing and fittings (One Completed) Repair leak in chlorine product tank Replace chlorine generating cells and modify brine solution pump for easier servicing and maintenance (MARCH -APRIL) $ 142,553 + Labor for installation and miscellaneous fittings Projected total Project Cost $190,000 Richfield Plant Chlorine System Refurbishment Completed to Date Project Overview: Budgeted $0 Contract Estimate $30,000 Repair Leak on 24” Transmission Main Locate Leak and Install 24” butterfly valve (Contractor) Replace two air vac valves (YLWD Staff) Collect water samples before returning to service Estimated time frame 5 days Toronto 24” Transmission Line Repair January 15, 2018 Exposing pipe and setting shoring 10 feet deep January 16, 2018 Removing exterior concrete coating January 16, 2018 Exposed Steel Pipe and preparing space for welder January 17, 2018 Preparing for removal of section of pipe January 17, 2018 New Valve installed and welding January 18, 2018 Installing corrosion control wires January 19, 2018 Finished job with temporary asphalt in place January 19, 2018 Close up of weld failure, cause of leak January 19, 2018 Close up of failure from inside the pipe Questions