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HomeMy WebLinkAbout2019-11-26 - Board of Directors Meeting Agenda Packet (B)AGENDA YORBA LINDA WATER DISTRICT REGULAR BOARD OF DIRECTORS MEETING  Tuesday, November 26, 2019, 6:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL   Brooke Jones, President Phil Hawkins, Vice President Andrew J. Hall, Director J. Wayne Miller, Director Al Nederhood, Director 4. ADDITIONS/DELETIONS TO THE AGENDA  Items may be added to the agenda upon determination by a two­thirds vote of the Board, or a  unanimous vote if only three Directors are present, that there is a need to take immediate action which  came to the District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2))  5. INTRODUCTIONS AND PRESENTATIONS  5.1. Elected Official Liaison Reports  5.2. Federal and State Legislative Update 6. PUBLIC COMMENTS  Any individual wishing to address the Board or Committee is requested to identify themselves and state  the matter on which they wish to comment. If the matter is on the agenda, the Chair 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 three minutes and must be related to matters of public interest  within the jurisdiction of the Water District. (GC 54954.3)  7. CONSENT CALENDAR  All items on the consent calendar are considered routine and may be approved by a single motion.  There will be no discussion of these items unless a member of the Board, staff, or public requests  separate consideration.   7.1.Payment of Bills, Refunds, and Wire Transfers   Recommendation:  That the Board of Directors ratify and authorize  disbursements in the amount of $1,118,463.39.  7.2.Budget to Actual Reports for Month Ending October 31, 2019   Recommendation:  That the Board of Directors receive and file the Budget to  Actual Reports for the month ending October 31, 2019. Page 1 of 62  7.3.Cash and Investment Report for Period Ending October 31, 2019   Recommendation:  That the Board of Directors receive and file the Cash and  Investment Report for the period ending October 31, 2019.  7.4.Discontinuation of Residential Water Service for Nonpayment Policy (SB 998)   Recommendation:  That the Board of Directors adopt Resolution No.  2019­XX  setting forth a Discontinuation of Residential Water Service for Nonpayment  Policy. 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.Amending the General Manager's Employment Agreement   Recommendation:  That the Board of Directors consider whether to: (1)  approve the Sixth Amendment to the Employment Agreement for the Position  of General Manager as negotiated by the District's Designated Representative;  and (2) adopt Resolution No. 2019­XX approving the Classification and Salary  for the General Manager effective September 1, 2019, and rescinding  Resolution No. 18­33. 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. Treatment of Groundwater Supplies to Remove Per­ and Polyfluoroalkyl  Substances (PFAS) 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 (Jones/Hawkins)  Minutes from the meeting held Monday, November 25, 2019 at 4:00  p.m. will be provided when available. Next meeting is scheduled Thursday, January 23, 2020 at 4:00 p.m. Page 2 of 62  11.2. Joint Agency Committee with City of Yorba Linda (Jones/Hawkins)  Next meeting is scheduled Monday, December 16, 2019 at 3:00 p.m. at  YL City Hall.  11.3. Joint Agency Committee with City of Placentia (Jones/Hawkins)  Minutes of the meeting held Tuesday, October 29, 2019 at 3:30 p.m.  are included in the agenda packet. Next meeting is scheduled Wednesday, January 15, 2020 at 3:00 p.m. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR  12.1. Meetings from December 1, 2019 ­ January 31, 2020 13. ADJOURNMENT  13.1. The next Regular Board Meeting will be held Tuesday, December 10, 2019.   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 Non­exempt materials related to open session agenda items that are distributed to a majority of the Board or  Committee less than seventy­two (72) hours prior to the meeting will be available for public inspection in the lobby  of the District’s Administrative building located at 1717 East Miraloma Avenue, Placentia CA 92870 during regular  business hours. When practical, these materials will also be available on the District’s website  (http://www.ylwd.com/). (GC 54957.5) Accommodations for the Disabled Requests for disability­related modifications or accommodations, including auxiliary aids or services, required for  participation in the above posted meeting should be directed to the Board Secretary at (714) 701­3020 at least 24  hours in advance. (GC 54954.2(a)) Page 3 of 62 ITEM NO. 7.1. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Delia Lugo, Finance Manager Richard Cabadas, Accounting Assistant II SUBJECT:Payment of Bills, Refunds, and Wire Transfers RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $1,118,463.39. 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. BACKGROUND: The items on this disbursement list include: a check of $127,351.09 to ACWA/JPIA for December medical & dental premiums; a wire of $89,886.01 to So. California Edison for October 2019 electricity charges at multiple locations; a wire of $36,905.71 to So. California Gas Co for October 2019 gas charges at multiple locations; and a wire of $387,651.06 to MWDOC for September 2019 water deliveries. The balance of $119,625.49 is routine invoices. The Accounts Payable check register total is $761,419.36 and Payroll No. 23 total is $357,044.03; where total disbursements for this agenda report is $1,118,463.39. A summary of the disbursements is attached. PRIOR RELEVANT BOARD ACTION: The Board of Directors approves bills, refunds and wire transfers semi-monthly. Page 4 of 62 ATTACHMENTS: 1.Cap Sheet 2.Check Register Page 5 of 62 Summary of Disbursements November 26, 2019 CHECK NUMBERS: 11/26/2019 Computer Checks 75194-75259 $ 246,976.58 ____________ $ 246,976.58 WIRES: W 111519 So. California Edison $ 89,886.01 W 111519A So. California Gas Co. $ 36,905.71 W 111519B MWDOC $ 387,651.06 ____________ $ 514,442.78 TOTAL OF CHECKS & WIRES $ 761,419.36 PAYROLL NO. 23: Direct Deposits $ 223,904.92 Third Party Checks 7281-7285 $ 27,008.84 Payroll Taxes $ 65,775.14 EFT – CALPERS #23 & TASC #23 $ 40,355.13 $ 357,044.03 TOTAL OF PAYROLL $ 357,044.03 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $ 1,118,463.39 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF NOVEMBER 26, 2019 ==================================================================. Page 6 of 62 Check No.Date Vendor Name Amount Description 75195 11/26/2019 1ST TEAM REAL ESTATE 267.74 CUSTOMER REFUND 75210 11/26/2019 ACWA/JPIA 127,351.09 MEDICAL & DENTAL PREMIUM - DECEMBER 2019 75204 11/26/2019 ADRIANA GONZALES 106.91 CUSTOMER REFUND 75211 11/26/2019 Al Nederhood 122.96 MILEAGE REIMBURSEMENT - OCTOBER 2019 75207 11/26/2019 AMERICAN ASPHALT SOUTH INC.1,775.60 CUSTOMER REFUND 75212 11/26/2019 Annie Alexander 83.47 REIMBURSEMENT - MEETING & OFFICE SUPPLIES 75213 11/26/2019 Anthony Varian 140.00 CERT REIMBURSEMENT - D4 75214 11/26/2019 Aqua-Metric Sales Co.1,213.90 REPLACEMENT METERS 75215 11/26/2019 Aramark 825.62 UNIFORM SERVICE 75222 11/26/2019 ARC 71.78 J19-39S - PW DOC MANAGEMENT 75194 11/26/2019 ARTURO CERVANTES 92.53 CUSTOMER REFUND 75217 11/26/2019 AT & T - Calnet3 2,880.85 ATT CALNET3 75216 11/26/2019 ATS Communications 815.00 PROFESSIONAL SERVICES 75218 11/26/2019 B.L. Wallace Distributor, Inc.3,501.61 METER LIDS WITH AMI SLOT 75219 11/26/2019 Brooke Jones 149.41 MILEAGE REIMBURSEMENT - OCTOBER 2019 75220 11/26/2019 CDW Government, Inc 220.40 DESKTOP & CELL PHONE SUPPLIES 75197 11/26/2019 CLARENCE YOSHIKANE 73.51 CUSTOMER REFUND 75221 11/26/2019 Cla-Val Co.3,609.27 TRANSMITTERS & FLOW CURVES 75223 11/26/2019 CPR1 LLC 390.00 ANNUAL AED TOTAL SOLUTION 75224 11/26/2019 Culligan of Santa Ana 2,520.00 EQUIPMENT PE SOFTENER 75201 11/26/2019 DALE QUARTO 93.05 CUSTOMER REFUND 75225 11/26/2019 Daniels Tire Service 88.00 TIRE DISPOSAL FEE 75227 11/26/2019 Dean Criske Trucking 1,909.10 ROAD MATERIAL 75226 11/26/2019 Dell Marketing L.P.302.36 SOFTWARE PURCHASE 75196 11/26/2019 DESLEY JONES 119.19 CUSTOMER REFUND 75200 11/26/2019 DITO ARMENTO 223.55 CUSTOMER REFUND 75228 11/26/2019 Elite Equipment Inc 1,235.78 TRENCH DIGGER & WHIP HOSE 75229 11/26/2019 Enthalpy Analytical, Inc.2,228.00 WATER QUALITY SAMPLING 75230 11/26/2019 EyeMed 1,408.74 EYE MED - NOVEMBER 2019 75231 11/26/2019 Grainger 1,007.29 SCADA SUPPLIES & MATERIALS 75232 11/26/2019 Harrington Industrial 354.25 HARDWARE SUPPLIES 75208 11/26/2019 HBA, INC.1,403.60 CUSTOMER REFUND 75209 11/26/2019 HOLCOMBE FAMILY TRUST 404.49 CUSTOMER REFUND 75233 11/26/2019 Infosend Inc.6,588.05 BILLING & POSTAGE - CUSTOMER BILLING 75234 11/26/2019 Jackson's Auto Supply - Napa 193.56 VEHICLE MAINTENANCE 75198 11/26/2019 JAMESON HORTON 38.27 CUSTOMER REFUND 75203 11/26/2019 JAY NAKADA 78.13 CUSTOMER REFUND 75205 11/26/2019 JENS ESKELSEN 30.21 CUSTOMER REFUND 75235 11/26/2019 KB Design 1,093.60 YLWD DISTRICT GEAR 75236 11/26/2019 Kidman Gagen Law 35,936.51 LEGAL SERVICES - NOVEMBER 2019 75237 11/26/2019 Konica Minolta Business 861.51 COPY CHARGES - C258 & C558 COPIERS 75238 11/26/2019 Managed Health Network 171.00 EAP (76) - NOVEMBER 2019 75241 11/26/2019 Marcus Millen 44.71 TRAVEL EXPENSE - ARMA INFOCON 2019 75239 11/26/2019 Maria Trujillo 55.92 MILEAGE REMBURSEMENT CSMFO CONFERENCE 75240 11/26/2019 Mars Environmental Inc.2,262.80 OFFICE EXPENSE 75242 11/26/2019 Mc Fadden-Dale Hardware 416.07 HARDWARE SUPPLIES 75243 11/26/2019 Michael Payne Consulting 1,500.00 CONSULTING SERVICE W111519B 11/15/2019 MWDOC 387,651.06 WATER DELIVERIES - SEPTEMBER 2019 75199 11/26/2019 NEAR CAL CORP 832.00 CUSTOMER REFUND 75244 11/26/2019 Nickey Kard Lock Inc 13,478.90 FUEL - OCTOBER 2019 75245 11/26/2019 Orange Coast Petroleum Equip.722.14 MECHANICS SHOP EQUIPMENT 75246 11/26/2019 Orange County - Tax Collector 9,115.94 PROPERTY TAX 2019-2020 75251 11/26/2019 P.T.I. Sand & Gravel, Inc.645.82 ROAD MATERIAL BALLAST 75247 11/26/2019 Pete's Road Service Inc 1,548.34 TIRE REPAIR 75248 11/26/2019 Phil Hawkins 48.72 MILEAGE REIMBURSEMENT - OCTOBER 2019 75249 11/26/2019 Plumbers Depot Inc.585.01 MANHOLE COVER ROLLER 75250 11/26/2019 Praxair Distribution 217.60 WELDING SUPPLIES 75252 11/26/2019 Quinn Company 6,969.02 MAINTENANCE PARTS - HIGHLAND BOOSTER #5 75255 11/26/2019 Rachel Padilla/Petty Cash 323.66 PETTY CASH - Y101019 & O111219 75253 11/26/2019 Resource Computer Solutions 119.36 NETWORK/HARDWARE CONSULTING 75254 11/26/2019 Robertson's 1,111.21 PUMPED CONCRETE 75206 11/26/2019 S2 REAL ESTATE CORP 415.19 CUSTOMER REFUND 75202 11/26/2019 SCOTT PIEKARSKI 124.02 CUSTOMER REFUND W111519 11/15/2019 So. California Edison 89,886.01 ELECTRICITY CHARGES - VARIOUS LOCATIONS - OCTOBER 2019 W111519A 11/15/2019 So. California Gas Co.36,905.71 GAS CHARGES - VARIOUS LOCATIONS - OCTOBER 2019 75256 11/26/2019 Trench Shoring 319.50 TRENCH TOP RENTAL Yorba Linda Water District Check Register For Checks Dated: 11/13/2019 thru 11/26/2019 Page 7 of 62 75257 11/26/2019 U S Postmaster 310.00 PO BOX 309 - 12 MONTHS 75258 11/26/2019 United Water Works, Inc.1,311.55 OPERATIONS WORK MATERAL 75259 11/26/2019 YO Fire 2,519.21 OPERATIONS WORK MATERIAL 761,419.36 11/14/2019 PAYROLL #23 - EMPLOYEE DIRECT DEPOSIT 223,904.92 11/14/2019 PAYROLL #23 - PAYROLL TAX PAYMENT 65,775.14 11/14/2019 PAYROLL #23 - CALPERS 38,018.24 11/14/2019 PAYROLL #23 - TASC 2,336.89 7281 11/14/2019 COLONIAL LIFE 107.1 7282 11/14/2019 LINCOLN FINANCIAL GROUP 5431.12 7283 11/14/2019 NATIONWIDE RETIREMENT SOLUTIONS 20718.78 7284 11/14/2019 CALIFORNIA STATE DISBURSEMENT UNIT 366.92 7285 11/14/2019 CALIFORNIA STATE DISBURSEMENT UNIT 384.92 357,044.03 Payroll Checks #23 Page 8 of 62 ITEM NO. 7.2. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Delia Lugo, Finance Manager Kelly McCann, Senior Accountant SUBJECT:Budget to Actual Reports for Month Ending October 31, 2019 RECOMMENDATION: That the Board of Directors receive and file the Budget to Actual Reports for the month ending October 31, 2019. SUMMARY: Presented are the Budget to Actual Reports for the Month Ending October 31, 2019 for the District. BACKGROUND: For the month-ending October 31, 2019, 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 October 31, 2019, reflects an approximated average decrease of 0.3% as compared to the prior year for the same reporting period. Commercial customer connections reflect the largest average decrease in consumption sales of 5.12% as compared to reported results from the prior year. Total Variable Costs results, as reported through the month ending October 31, 2019, reflect a 4.35% decrease when compared to prior year for the same reporting period. The decrease in costs is predominantly reflective of the decrease in total water demand, which as reported, is 3.36% below that of prior year STRATEGIC PLAN INITIATIVE: G2 3B – Regularly assess net position and steps to meet strategic goals. Page 9 of 62 ATTACHMENTS: 1.Financial Reports October 2019 Page 10 of 62 FY20 Annual Budget YTD Actuals thru October 2019 YTD % of Budget Water Revenue (Residential)16,548,758$ 6,799,350$ 41.09% Water Revenue (Commercial & Fire Det.)1,872,073 672,887 35.94% Water Revenue (Landscape/Irrigation)3,917,982 1,802,987 46.02% Service Charges 10,988,263 3,599,623 32.76% Other Operating Revenue 902,996 354,311 39.24% Total Operating Revenue 34,230,072 13,229,158 38.65% Revenue (Non-Operating): Interest 698,777 197,384 28.25% Property Taxes 1,820,471 41,358 2.27% Other Non-Operating Revenue 608,430 255,214 41.95% Total Non-Operating Revenue 3,127,678 493,956 15.79% Total Revenue 37,357,750$ 13,723,114$ 36.73% Expenses (Operating): Variable Water Costs (G.W., Import & Power) Water-Related Costs 12,485,582$ 5,040,413$ 40.37% Fixed Costs 1,179,009 220,029 18.66% Power-Related Costs 1,446,219 689,806 47.70% Variable Water Costs Related Expenses Total 15,110,810 5,950,248 39.38% Salary Related Expenses 10,753,255 2,961,230 27.54% Reduction for Capital Project Labor (225,000) (60,408) 26.85% Salary Related Expenses Total 10,528,255 2,900,822 27.55% Supplies & Services Communications 228,183 44,058 19.31% Contractual Services 496,717 128,731 25.92% Data Processing 324,069 58,047 17.91% Dues & Memberships 78,862 54,708 69.37% Fees & Permits 290,271 72,753 25.06% Insurance 304,468 94,934 31.18% Materials 948,195 333,349 35.16% District Activities, Emp Recognition 43,371 9,476 21.85% Maintenance 565,165 164,185 29.05% Non-Capital Equipment 170,778 43,703 25.59% Office Expense 33,950 16,248 47.86% Professional Services 585,971 235,207 40.14% Training 78,301 8,037 10.26% Travel & Conferences 126,278 18,334 14.52% Uncollectible Accounts 4,185 3,438 82.16% Utilities 179,258 80,020 44.64% Vehicle Expenses 335,600 138,608 41.30% Supplies & Services Sub-Total 4,793,620 1,503,836 31.37% Total Operating Expenses 30,432,685 10,354,906 34.03% Expenses (Non-Operating) Other Expense 13,520 58,465 432.43% Total Non-Operating Expenses 13,520 58,465 432.43% Total Expenses 30,446,205$ 10,413,371$ 34.20% Net Revenues 6,911,545 3,309,743 47.89% Less: Debt Service (Principal & Interest)2,726,956 1,962,475 71.97% Less: Committed Capital Expenditures (PayGo)3,204,425 170,622 5.32% Less: PARS Contribution - Net Pension/OPEB 1,700,000 - 0.00% Transfer to/(from) Reserves (719,836) 1,176,646 163.46% Net Total -$ (0)$ Yorba Linda Water District Water Enterprise FY20 ProForma - Use of Funds October 2019 Page 11 of 62 Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Period Ending October 31, 2019 Annual YTD Oct YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Oct Actual Actual (thru vs vs FY20 FY20 FY20 FY20 YTD Budget FY19 Oct 2019)PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)16,548,758$ 7,039,842$ 1,786,827$ 6,799,350$ (240,492)$ 1,409,178$ 6,326,138$ 473,212$ 7.48% Water Revenue (Commercial & Fire Det.)1,872,073 796,380 183,102 672,887 (123,493)160,771 709,196 (36,309)-5.12% Water Revenue (Landscape/Irrigation)3,917,982 1,666,710 491,366 1,802,986 136,276 416,524 1,865,111 (62,125)-3.33% Water Revenue (Service Charge)10,988,263 3,662,754 921,202 3,599,623 (63,131)835,749 3,340,602 259,021 7.75% Sewer Charge Revenue 2,421,665 807,222 207,044 797,195 (10,027)186,966 745,437 51,758 6.94% Locke Ranch Assessments 324,173 - 52 407 407 - 171 236 0.00% Other Operating Revenue 964,708 335,569 102,346 397,963 62,394 123,680 469,882 (71,919)-15.31% Total Operating Revenue:37,037,622 14,308,476 3,691,939 14,070,411 (238,065)3,132,868 13,456,537 613,874 4.56% Revenue (Non-Operating): Interest 812,306 235,768 117,209 232,161 (3,607)108,160 234,393 (2,232)-0.95% Property Tax 1,820,471 37,926 4,963 41,358 3,432 5,803 43,247 (1,889) 0.00% Other Non-Operating Revenue 632,909 210,970 82,906 275,375 64,405 26,293 156,580 118,795 75.87% Total Non-Operating Revenue:3,265,685 484,665 205,078 548,894 64,229 140,256 434,220 114,674 26.41% Total Revenue 40,303,307 14,793,141 3,897,017 14,619,305 (173,836)3,273,124 13,890,757 728,548 5.24% Expenses (Operating): Variable Water Costs (G.W., Import & Power)15,110,810 6,428,139 1,361,053 5,950,248 (477,891)1,307,477 6,220,835 (270,587)-4.35% Salary Related Expenses 11,664,922 3,403,771 1,024,157 3,207,452 (196,319)721,737 2,821,270 386,182 13.69% Supplies & Services 5,419,301 1,646,434 403,528 1,612,176 (34,258)366,918 1,418,606 193,570 13.65% Total Operating Expenses 32,195,033 11,478,343 2,788,738 10,769,876 (708,467)2,396,132 10,460,711 309,165 2.96% Expenses (Non-Operating): Interest on Long Term Debt 1,303,967 434,656 107,685 438,572 3,916 111,601 457,805 (19,233) -4.20% Other Expense 13,520 13,520 27,167 84,368 70,848 496 3,845 80,523 2094.21% Total Non-Operating Expenses:1,317,488 448,176 134,852 522,940 74,764 112,097 461,650 61,289 13.28% Total Expenses 33,512,521 11,926,519 2,923,590 11,292,816 (633,703)2,508,229 10,922,361 370,455 3.39% Net Position Before Capital Contributions 6,790,787 2,866,623 973,427 3,326,489 459,867 764,895 2,968,396 358,092 12.06% Capital Contributions (Non-Cash - - 3,928 5,194 5,194 974 3,294 1,900 0.00% Transaction GASB 34 Compliant) Net Position Before Depreciation 6,790,787 2,866,623 977,355 3,331,683 465,061 765,869 2,971,690 359,992 12.11% Depreciation & Amortization 7,720,659 2,473,553 602,042 2,408,165 (65,388) 613,228 2,455,192 (47,027) -1.92% Total Net Position ($929,872)$393,070 375,313 923,517 $530,449 $152,641 $516,498 $407,019 78.80% (295,000) (98,333) (27,180)(72,957) (72,957) (39,091) (122,613) 49,656 -40.50% (With October 31, 2018 for comparison purposes) Page 12 of 62 Annual YTD Oct YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Oct Actual Actual (thru vs vs FY20 FY20 FY20 FY20 YTD Budget FY19 Oct 2019) PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)16,548,758$ $7,039,842 1,786,827$ 6,799,350$ (240,492)$ 1,409,178$ 6,326,138$ 473,212$ 7.48% Water Revenue (Commercial & Fire Det.)1,872,073 796,380 183,102 672,887 (123,493) 160,771 709,196 (36,309) -5.12% Water Revenue (Landscape/Irrigation)3,917,982 1,666,710 491,366 1,802,987 136,277 416,524 1,865,111 (62,124) -3.33% Water Revenue (Service Charge)10,988,263 3,662,754 921,202 3,599,622 (63,132) 835,749 3,340,602 259,020 7.75% Other Operating Revenue 902,996 300,999 97,360 354,311 53,312 120,172 435,202 (80,891) -18.59% Total Operating Revenue:34,230,072 13,466,684 3,479,857 13,229,157 (237,527) 2,942,394 12,676,249 552,909 4.36% Revenue (Non-Operating): Interest 698,777 197,926 97,107 197,385 (541) 81,701 195,232 2,153 1.10% Property Tax 1,820,471 37,926 4,963 41,358 3,432 5,803 43,247 (1,889) 0.00% Other Non-Operating Revenue 608,430 202,810 80,805 255,214 52,404 28,494 148,813 106,401 71.50% Total Non-Operating Revenue:3,127,678 438,662 182,875 493,957 55,295 115,998 387,292 106,665 27.54% Total Revenue 37,357,750 13,905,346 3,662,732 13,723,114 (182,232) 3,058,392 13,063,541 659,573 5.05% Expenses (Operating): Variable Water Costs (G.W., Import & Power)15,110,810 6,428,139 1,361,053 5,950,249 (477,890) 1,307,477 6,220,835 (270,586) -4.35% Salary Related Expenses 10,528,255 3,064,165 931,215 2,900,821 (163,344) 657,077 2,566,722 334,100 13.02% Supplies & Services: Communications 228,183 51,061 7,745 44,058 (7,003) 6,885 71,061 (27,003) -38.00% Contractual Services 496,717 135,572 25,891 128,731 (6,841) 40,137 126,288 2,443 1.93% Data Processing 324,069 68,023 15,298 58,047 (9,976) 26,314 93,330 (35,283) -37.80% Dues & Memberships 78,862 51,287 32,367 54,708 3,421 35,053 62,335 (7,627) -12.24% Fees & Permits 290,271 71,257 17,090 72,753 1,496 10,955 65,905 6,848 10.39% Insurance 304,468 101,489 18,722 94,934 (6,555) 23,061 89,975 4,959 5.51% Materials 948,195 326,065 108,792 333,350 7,285 78,881 316,386 16,964 5.36% District Activities, Emp Recognition 43,371 14,457 4,247 9,476 (4,981) 4,579 11,206 (1,730) -15.44% Maintenance 565,165 173,388 1,412 164,185 (9,203) 13,852 87,812 76,373 86.97% Non-Capital Equipment 170,778 51,926 8,270 43,703 (8,223) 9,250 57,465 (13,762) -23.95% Office Expense 33,950 11,317 4,720 16,248 4,931 2,997 10,122 6,126 60.52% Professional Services 585,971 225,824 58,144 235,207 9,383 30,080 127,999 107,208 83.76% Training 78,301 16,100 1,496 8,037 (8,063) 2,096 11,256 (3,219) -28.60% Travel & Conferences 126,278 24,593 7,235 18,334 (6,259) 7,803 20,782 (2,448) -11.78% Uncollectible Accounts 4,185 1,395 2,127 3,438 2,043 253 108 3,330 3074.52% Utilities 179,258 72,253 14,877 80,020 7,768 13,820 59,404 20,616 34.70% Vehicle Equipment 335,600 126,867 45,097 138,607 11,740 34,950 102,919 35,688 34.68% Supplies & Services Sub-Total 4,793,620 1,522,873 373,530 1,503,836 (19,037) 340,966 1,314,354 189,482 14.42% Total Operating Expenses 30,432,685 11,015,177 2,665,798 10,354,906 (660,271) 2,305,520 10,101,910 252,996 2.50% Expenses (Non-Operating): Interest on Long Term Debt 1,303,967 434,656 107,685 438,572 3,916 111,601 457,805 (19,233) -4.20% Other Expense 13,520 13,520 19,626 58,465 44,945 (5,092) (4,516) 62,981 1394.53% Total Non-Operating Expenses:1,317,487 448,176 127,311 497,037 48,861 106,509 453,289 43,748 9.65% Total Expenses 31,750,172 11,463,353 2,793,109 10,851,943 (611,410) 2,412,029 10,555,199 296,744 2.81% Net Position Before Capital Contributions 5,607,578 2,441,994 869,623 2,871,171 429,178 646,363 2,508,342 362,829 14.46% Capital Contributions (Non-Cash Transaction -- - - - - - - - GASB 34 Compliant) Net Position Before Depreciation 5,607,578 2,441,994 869,623 2,871,171 429,178 646,363 2,508,342 362,829 14.46% Depreciation & Amortization 6,289,903 1,996,634 487,190 1,948,760 (47,874) 498,732 1,997,210 (48,450) -2.43% Total Net Position (682,325)$ 445,359$ 382,433$ 922,411 477,052$ 147,631$ 511,132$ 411,279$ 80.46% Capital - Direct Labor (225,000) (75,000)(17,177) (60,408) 14,592 (30,068) (96,356) 35,948 -37.31% Yorba Linda Water District Water Fund For Period Ending October 31, 2019 (With October 31, 2018 for comparison purposes) Page 13 of 62 $12,273,563 $9,978,933 $12,069,885 $12,482,026 $13,063,541 $13,723,114 5.05% $10,669,001 $8,377,456 $9,834,419 $9,701,451 $10,555,199 $10,851,943 2.81% $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Oct. 2014 Oct. 2015 Oct. 2016 Oct. 2017 Oct. 2018 Oct. 2019 Water Revenues & Expenses -October (excludes Depreciation, Special Items, and Contributed Capital ) Total Revenue Total Expenses Page 14 of 62 Annual YTD Oct YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Oct Actual Actual (thru vs vs FY20 FY20 FY20 FY20 YTD Budget FY19 Oct 2019)PY Actual $PY Actual % Revenue (Operating): Sewer Charge Revenue 2,421,665$ 807,222$ $207,044 797,195$ (10,027)$ 186,966$ 745,437$ 51,758$ 6.94% Locke Ranch Assessments 324,173 - 52 407 407 - 171 236 0.00% Other Operating Revenue 61,712 34,571 4,986 43,651 9,080 3,507 34,680 8,971 25.87% Total Operating Revenue:2,807,550 841,792 212,082 841,253 (539)190,473 780,288 60,965 7.81% Revenue (Non-Operating): Interest 113,528 37,843 20,102 34,777 (3,066)26,460 39,161 (4,384)-11.19% Other Non-Operating Revenue 24,480 8,160 2,101 20,161 12,001 (2,201)7,767 12,394 159.58% Total Non-Operating Revenue:138,008 46,003 22,203 54,938 8,935 24,259 46,928 8,010 17.07% Total Revenue 2,945,558 887,795 234,285 896,191$ 8,396 214,732 827,216 68,975 8.34% Expenses (Operating): Salary Related Expenses 1,136,668 339,606 92,942 306,630 (32,976)64,660 254,548 52,082 20.46% Supplies & Services: Communications 13,412 4,471 583 3,308 (1,163)518 3,236 72 2.23% Contractual Services 30,764 10,255 1,823 8,126 (2,129)2,628 7,698 428 5.55% Data Processing 21,382 7,127 1,151 3,634 (3,493)1,950 6,234 (2,600)-41.71% Dues & Memberships 5,928 1,976 2,436 4,118 2,142 2,638 4,692 (574)-12.23% Fees & Permits 15,509 5,170 1,355 3,752 (1,417)645 2,372 1,381 58.21% Insurance 22,917 7,639 5,393 11,129 3,490 1,666 6,702 4,427 66.05% Materials 65,206 6,735 765 4,829 (1,906)460 21,812 (16,983)-77.86% District Activities, Emp Recognition 3,264 1,088 320 714 (374)345 775 (61)-7.89% Maintenance 171,135 22,045 1,100 15,631 (6,414)219 13,388 2,243 16.76% Non-Capital Equipment 39,542 13,181 4,980 9,026 (4,155)1,214 6,218 2,808 45.16% Office Expense 2,555 852 355 1,185 333 226 746 439 58.85% Professional Services 156,229 17,076 3,071 11,572 (5,504)5,624 11,582 (10)-0.08% Training 8,569 2,856 326 4,585 1,729 553 1,157 3,428 296.42% Travel & Conferences 14,362 4,787 511 1,839 (2,948)554 1,503 336 22.32% Uncollectible Accounts 315 105 286 343 238 30 (9) 351 -4129.41% Utilities 13,493 4,498 1,120 6,023 1,526 1,090 4,725 1,298 27.47% Vehicle Equipment 41,100 13,700 7,023 18,524 4,824 5,591 11,422 7,102 62.18% Supplies & Services Sub-Total 625,681 123,560 32,598 108,338 (15,223) 25,951 104,253 4,085 3.92% Total Operating Expenses 1,762,349 463,166 125,540 414,968 (48,198.56) 90,611 358,801 56,167 15.65% Expenses (Non-Operating): Other Expense - - 7,541 25,903 25,903 5,588 8,361 17,543 209.83% Total Non-Operating Expenses:- - 7,541 25,903 25,903 5,588 8,361 17,543 0.00% Total Expenses 1,762,349 463,166 133,081 440,871 (22,295) 96,199 367,162 73,709 20.08% Net Position Before Capital Contributions 1,183,209 424,629 101,204 455,320 30,691 118,533 460,055 (4,734) -1.03% Capital Contributions (Non-Cash Transaction -- - 3,928 5,194 5,194 974 3,294 1,900 57.70% GASB 34 Compliant) Net Position Before Depreciation 1,183,209 424,629 105,132 460,514 35,885 119,507 463,348 (2,834) -0.61% Depreciation & Amortization 1,430,756 476,919 114,852 459,408 (17,511)114,495 457,982 1,426 0.31% Total Net Position (247,547) (52,290) (9,720) 1,106 53,396 5,012 5,366 (4,260) -79.39% Capital - Direct Labor (70,000)(23,333) (10,002) (12,549)10,784 (9,023) (26,257)13,708 -52.21% Yorba Linda Water District Sewer Fund For Period Ending October 31, 2019 (With October 31, 2018 for comparison purposes) Page 15 of 62 $570,911 $565,329 $731,350 $723,385 $827,216 $896,191 8.34% $445,761 $392,825 $409,146 $452,824 $367,162 $440,871 20.08% $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 Oct. 2014 Oct. 2015 Oct. 2016 Oct. 2017 Oct. 2018 Oct. 2019 Sewer Revenues & Expenses -October (excludes Depreciation, Special Items, and Contributed Capital) Total Revenue Total Expenses Page 16 of 62 $2,141,950 $3,479,529 $3,331,398 $3,340,602 3,599,623 $640,971 $692,097 $715,850 $709,196 672,887 $1,102,164 $1,616,399 $1,669,399 $1,865,111 1,802,987 $4,687,668 $5,713,135 $6,139,644 $6,326,138 $6,799,350 $8,572,753 $11,501,160 $11,856,292 $12,241,04 $12,874,847 5.18% increase compared to FY19 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 FY16 FY17 FY18 FY19 FY20 Water Revenue Comparison by Fiscal Year Water Revenue (Service Charge) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape/Irrigation) Water Revenue (Residential)Total Page 17 of 62 1,310,853 1,388,016 1,284,700 1,135,165 981,755 1,069,354 1,460,113 1,505,340 1,358,893 1,340,186 1,143,948 1,518,953 1,671,801 1,729,514 1,512,043 1,307,477 981,384 1,019,234 1,660,561 1,492,928 1,435,706 1,361,053 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 Variable Costs Analysis FY17 Var Costs FY18 Var Costs FY19 Var Costs FY20 Var Costs Page 18 of 62 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 JULY AUGUST SEPTEMBER OCTOBER 55,561 58,238 56,992 61,680 49,466 51,254 63,184 80,884 74,233 63,745 61,537 66,195 54,463 56,459 45,308 48,708 49,885 59,881 58,311 66,613 119,268 136,162 131,653 154,349 136,153 80,846 154,590 207,053 220,117 183,783 121,214 178,617 142,649 169,608 150,522 76,382 123,019 138,015 66,613 179,230 CONSUMPTION BY UNITS CCF Residential Commercial Landscape Page 19 of 62 ITEM NO. 7.3. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Delia Lugo, Finance Manager Kelly McCann, Senior Accountant SUBJECT:Cash and Investment Report for Period Ending October 31, 2019 RECOMMENDATION: That the Board of Directors receive and file the Cash and Investment Report for the period Ending October 31, 2019. SUMMARY: Government Code Section 530607, et. seq., requires the person delegated to invest funds to make monthly report of investments to the legislative body. BACKGROUND: 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 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 average portfolio yield for the month ending October 31, 2019 is 1.94%. The District's Total Cash and Investment balance at October 31, 2019 resulted in an overall increase in the investment balance from the previous month is approximately $865,943. A larger balance includes an increase in the Water Operating Fund of $705,600 and $285,196 in the Sewer Operating Fund due to a positive net effect between operating revenues and expenses through the reporting month of the fiscal year. While Sewer Capital Project Reserve Page 20 of 62 Fund had an approximate decrease of $269,672 due to cover the cost of the Camera Truck. STRATEGIC PLAN INITIATIVE: G2 4C - Manage cash flow to maximize investment income. ATTACHMENTS: 1.Investment Reports & Graphs October 2019 Page 21 of 62 Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 628,918$ 628,918$ Wells Fargo Bank 628,918$ 628,918$ 1.70%Total 0.00% Money Market Accounts: 83$ 83$ US Bank (Revenue Bonds)1.52% 5,143,258 5,143,258 US Bank (Money Market)1.66% 1,975,878 1,975,878 Public Agency Retirement Svcs. (PARS) 7,119,219$ 7,119,219$ 19.19%Total 1.66% Certificates of Deposits: 248,402 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.65% 247,330 248,000 EnerBank USA Salt Lake City 08/26/20 1.30% 178,997 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.26% 247,293 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.60% 249,196 247,000 PrivateBank & Tr Chicago Ill CTF 03/30/22 2.18% 249,349 249,000 JP Morgan Chase Bk NA Columbus 03/31/22 2.45% 246,811 245,000 Goldman Sachs Bank 06/28/21 2.18% 246,811 245,000 Morgan Stanley Private Bank 06/28/21 2.18% 247,178 245,000 Capital One Bank USA 06/27/22 2.18% 247,178 245,000 Capital One Bank NA 06/27/22 2.18% 247,497 245,000 Ally Bank 06/27/22 2.23% 247,497 245,000 Sallie Mae Bank 06/27/22 2.23% 248,697 245,000 Synchrony 05/17/22 2.41% 249,361 245,000 Morgan Stanley Bank NA 06/13/22 2.50% 245,345 245,000 Silvergate Bank 06/28/24 2.45% 245,257 245,000 First Choice Bank 06/28/24 2.00% 3,892,199$ 3,871,000$ 10.49%Total 2.07% Corporate Notes: 503,395$ 500,000 Wells Fargo Co.03/04/21 2.48% 504,230$ 500,000 JP Morgan Chase Co.03/01/21 2.53% 1,007,625$ 1,000,000$ 2.72%Total 2.51% Pooled Investment Accounts: 14,432,437$ 14,432,437$ Local Agency Investment Fund 2.19% 1,381,507 1,377,575 CalTRUST Short Term 1.96% 8,628,244 8,578,842 CalTRUST Medium Term 1.71% 24,442,188$ 24,388,854$ 65.90%2.01% 37,090,149$ 37,007,991$ 100%Total Investments 1.94% 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. 10/31/19 Yorba Linda Water District Cash & Investment Portfolio Report October 31, 2019 ________________________________ Kelly McCann, Senior Accountant Page 22 of 62 Below is a chart summarizing the yields as well as terms and maturities for the month of October 2019: Average # of Month Portfolio Days to of 2019 Yield Maturity October 1.94%116 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 10/31/2018 10/31/2019 Monthly - October 108,160$ 117,227$ Year-to-Date 234,393$ 232,161$ Budget 2018/2019 2019/2020 Interest Budget, October YTD 119,333$ 270,769$ Interest Budget, Annual 358,000$ 812,306$ 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: The table below displays the District's Cash and Investment balance of $37 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for the Bond payment and PARS for the pension/OPEB payments. The number of Days in Cash are 346 for the Un-Restricted Water Reserve balance and 1,076 for the Un-Restricted Sewer Reserve balances, as of October 31, 2019. FY20 Reserve Cash and Requirements Investments September 2020 % Alloc October 2020 % Alloc "Target Available for Fund Description Balance 9/30/2019 Balance 10/31/2019 Levels"CY Obligations Water Operating Reserve 9,677,179$ 28.72%10,382,779$ 30.11%12,427,055$ (2,044,276)$ Water Emergency Reserve 7,178,489 21.30%7,190,764 20.85%7,115,108 75,656 Water Capital Project Reserve 7,128,990 21.16%7,160,881 20.77%7,314,221 (153,340) Rate Stabilization Reserve 4,128,278 12.25%4,148,350 12.03%4,093,400 54,950 Un-Restricted Water Reserve Balance 28,112,936 28,882,774 30,949,784 (2,067,010) Conservation Reserve 103,420 0.31%104,047 0.30%- 104,047 Employee Liability Reserve 302,179 0.90%304,011 0.88%400,000 (95,989) Restricted Reserve Balance 405,599 408,058 400,000 8,058 Sewer Operating Reserve 1,334,673 3.96%1,619,869 4.70%1,335,465 284,404 Sewer Emergency Reserve 1,930,553 5.73%1,931,354 5.60%1,914,347 17,007 Sewer Capital Project Reserve 1,912,887 5.68%1,643,215 4.76%1,909,045 (265,830) Un-Restricted Sewer Reserve Balance 5,178,113 5,194,438 5,158,857 35,581 Total Reserve Balances 33,696,648$ 100.00%34,485,270$ 100.00%36,508,641$ (2,023,371)$ Water Operating 374,089 611,857 Sewer Operating 191,641 17,061 565,730 628,918 Rev. Bond 2012A & 2017A-Principal & Interest 0 83 Public Agency Retirement Svc. -PARS (Restricted)1,961,827 1,975,878 Total Cash and Investments 36,224,206$ 37,090,149$ Cash & Investment Summary Report Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) Page 23 of 62 Checking Account:628,918$ 1.70% Money Market Accounts:7,119,219$ 19.19% Certificates of Deposit:3,892,199$ 10.49% Corporate Notes:1,007,625$ 2.72% Pooled Investment Accounts:24,442,188$ 65.90% Total 37,090,149$ 100.00% Checking Account: 1.70% Money Market Accounts: 19.19% Certificates of Deposit: 10.49% Corporate Notes: 2.72% Pooled Investment Accounts: 65.90% INVESTMENT BALANCES (AS OF 10 -31-2019) Checking Account:Money Market Accounts:Certificates of Deposit:Corporate Notes:Pooled Investment Accounts: Page 24 of 62 Yorba Linda Water District Fair Value Measurement Report October 31, 2019 Quoted Observable Unobservable Prices Inputs Inputs Investments Level 1 Level 2 Level 3 Total CalTRUST Investment Pool -$ 10,009,751$ -$ 10,009,751$ Local Agency Investment Fund - 14,432,437 - 14,432,437 Corporate Notes 1,007,625 1,007,625 Negotiable Certificates of Deposit - 3,892,199 - 3,892,199 Total Investments -$ 29,342,012$ -$ 29,342,012$ Page 25 of 62 Transaction Date Transaction Description Water Operating Pension Water Operating OPEB Sewer Operating Pension Sewer Operating OPEB Account Total Beginning Balance as of 7/1/19 1,235,837.20 526,669.64 135,806.94 62,230.97 1,960,544.75 7/31/2019 Investment Gain/(Loss)6,734.69 2,716.09 339.13 320.93 1,970,655.59 7/31/2019 Management Fees (272.06)(109.72)(13.70)(12.97) 1,970,247.14 7/31/2019 Investment Gain/(Loss) - Adjustment (361.18)361.18 1,970,247.14 7/31/2019 Management Fees - Adjustment 14.59 (14.59)1,970,247.14 8/31/2009 Investment Gain/(Loss)(5,050.10)(2,151.57)(553.40)(254.23) 1,962,237.84 8/31/2019 Management Fees (258.81)(110.27)(28.36)(13.03) 1,961,827.37 9/30/2019 Investment Gain/(Loss)9,114.79 3,884.40 1,001.64 458.98 1,976,287.18 9/30/2019 Management Fees (257.63)(109.80)(28.31)(12.97)1,975,878.47 Account Balance by Account Type 1,245,501.49 530,788.77 136,870.53 62,717.68 1,975,878.47$ 0.63 0.27 0.07 0.03 1.00 0.00 0.00 0.00 0.00 0.00 Pension OPEB Total Initial Contribution as of 12/28/2017 247,599.00$ - 247,599.00 Additional Contribution 6/26/19 1,105,248.00$ 587,339.00 1,692,587.00 Total Contributions =1,940,186.00 Total Gain (or Loss) from Inception 31,317.67$ 6,536.21 37,853.88 Total Management Fees from Inception (1,792.65)$ (368.76) (2,161.41) Balance as of 7-31-19 =1,382,372.02$ 593,506.45$ 1,975,878.47$ PARS (Public Agency Retirement Services) Funding Reconciliation Page 26 of 62 $27,898,706 $26,427,629 $27,189,603 $29,316,491 $28,882,774 380 374 371 368 346 60 110 160 210 260 310 360 410 $20,000 $5,020,000 $10,020,000 $15,020,000 $20,020,000 $25,020,000 $30,020,000 $35,020,000 Oct. 2015 Oct. 2016 Oct. 2017 Oct. 2018 Oct. 2019 Unrestricted Reserves & Days in Cash (Water) Unrestricted Reserves (Water)Days in Cash (Water) Page 27 of 62 ITEM NO. 7.4. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Delia Lugo, Finance Manager SUBJECT:Discontinuation of Residential Water Service for Nonpayment Policy (SB 998) RECOMMENDATION: That the Board of Directors adopt Resolution No. 2019-XX setting forth a Discontinuation of Residential Water Service for Nonpayment Policy. BACKGROUND: Staff has worked with Andrew Gagen of Kidman Gagen Law, District’s legal counsel, to develop a Policy for Discontinuation of Residential Water Service (“Discontinuation Policy”) as required under Senate Bill 998 (“SB 998”), which is known as the Water Shutoff Protection Act. SB 998 was signed into law in September 2018 and takes effect on February 1, 2020. The crux of SB 998 is that it prohibits the District from discontinuing residential service for nonpayment for at least 60 days (87 days from the “bill date” for the District). Under existing law (California Safe Drinking Water Act) the State Water Resources Control Board administers provisions to regulate drinking water to protect public health. Existing law declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. As stated in SB 998, it is the intent of the Legislature to minimize the number of Californians who lose access to water service due to inability to pay. Water service discontinuations threaten human health and well-being, and have disproportionate impact on infants, children, the elderly, low-income families, communities of color, people for whom English is a second language, physically disabled persons, and persons with life-threatening medical conditions. As also stated in SB 998: When there is a delinquent bill, all Californians, regardless of whether they pay a water bill directly, should be treated fairly, and fair treatment includes the Page 28 of 62 ability to contest a bill, seek alternative payment schedules, and demonstrate medical need and severe economic hardship. It is the intent of the Legislature that this act provide additional procedural protections and expand upon the procedural safeguards contained in the Public Utilities Code and Government Code as of January 1, 2018, relating to utility service disconnections. In accordance with SB 998 and its Legislative intent, the attached Discontinuation Policy establishes the District’s obligations to communicate with, and provide required services and information to, residential customers pertaining to (1) their monthly billings, (2) notifications of potential discontinuation of services, (3) available payment options, and (4) requirements for reconnection of service. The Policy also establishes special programs for low income customers and the qualifying requirements to be eligible for the program. This Policy must be available in at least 6 prescribed languages, available on the District’s Web site, and provided to customers in writing, upon request. The expanded timeline to 87 days poses an increased financial risk to the District for uncollectible accounts because customers potentially can have three unpaid bills on file before service may be discontinued for nonpayment. The District wrote off $8,847 in Fiscal Year 2019 for uncollectible accounts, and this amount could potentially double or even triple under SB 998 and this Discontinuation Policy. Staff recommends that the Board of Directors approve the Discontinuation Policy as presented. Staff will then proceed with having the policy translated into the required languages as set by SB 998. ATTACHMENTS: 1.Draft Policy (Redline) 2.Resolution 3.Final Policy Page 29 of 62 1 DISCONTINUATION OF RESIDENTIAL WATER SERVICE FOR NONPAYMENT POLICY 1.0 GENERAL POLICY AND AUTHORIZATION 1.1 Governing Authority. Yorba Linda Water District, as an agency of the state, formed as a special district pursuant to the County Water District Act (Water Code § 30000 et seq.),.) (“District”), is governed in the execution of the collection of delinquent accounts by California Government Code Sections 60370 – 60375.5. As an urban or community water system that supplies water to more than 200 service connections, the District is also governed, effective February 1, 2020, by Sections 116900 - 116926 of the California Health & Safety Code, which is known as the Water Shutoff Protection Act. 1.2 Discontinuation Policy. The Yorba Linda Water District Discontinuation of Residential Water Service for Nonpayment Policy (“Policy”) establishes policies and procedures when a water bill becomes delinquent. Discontinuance of water service for nonpayment is considered the final phase of the collection procedure and will be instituted only after both sufficient notification and all other reasonable payment alternatives have been exhausted. To the extent this Policy conflicts with any other District rules, regulations, or policies of the District, this Policy shall control. 1.3 General Manager Authority. By adoption of this Policy, the Board is authorizing the General Manager and their designee to exercise certain duties and responsibilities under this Policy that are essential for the operation of the District. 1.4 Contact Information. For questions or assistance regarding your water bill, including options to avoid discontinuation of service for nonpayment, the District's Customer Service staff can be reached at 714-701-3000. Customers may also visit the District's Customer Service desk in person Monday through Thursday, from 8:00 a.m. to 6:00 p.m., except on District holidays. 2.0 DISCONTINUATION OF SERVICE FOR NONPAYMENT OF DELINQUENT ACCOUNTS 2.1 Delinquent Accounts. Delinquent accounts are any water service bill that remains unpaid by 5:00 p.m. on the 27th day after the billing date. This Policy applies to the collection of delinquent accounts. 2.3 2.3 Time Period to Discontinue Service. The District will discontinue water service for water service charges that have become delinquent for at least sixty (60) days. 3.0. NOTICES TO CUSTOMER 3.1. Written Notice to Customer or Occupant/Water Consumer at Service Address. The District will provide a mailed notice to the customer of record by 5:00 p.m. on the 29th day after the billing date (but no less than thirty (30) days before discontinuation of water service). A ten percent (10%) late fee will be assessed at that time. If the Page 30 of 62 2 customer’s address is not the address of the property to which residential service is provided, the District will also send notice to the address of the property to which residential service is provided and will be addressed to “Occupant/Water Consumer.” 3.1.a. The mailed notice required in Section 3.1 above will contain: i. the name and address of the customer; ii. the amount of the delinquency; iii. the date by which payment or payment arrangements must be made to avoid discontinuation of service; iv. a description of the process to apply for an extension of time to pay the delinquent charges; v. the procedure to contest a water bill; iv. a description of the procedure by which the customer may request an extension or deferred, or alternative payment arrangement described in Section 4schedule, including an amortization of the delinquent residential service charges; v. the procedure by which the customer may contest a water bill and appeal as described Section 12; vi. information regarding the availability of financial assistance, including private, local, state, or federal sources, if applicable; and vii. the telephone number where the customer may request a payment arrangement or receive additional information from the District. 3.2 Telephonic Notice. If the mailed notice is returned through the mail as undeliverable or the customer has not paid their delinquent account at least ten (10) days before discontinuation of service, the District will also make a reasonable, good faith effort to contact the customer of record, or an adult person living at the premises of the customer, by telephone. The District will offer to provide in writing a copy of this Policy and to discuss options to avert discontinuation of water service for nonpayment, including the possibility of an extension or other payment arrangement listed in Section 64 below. 3.3 Posting of Notice to Occupants at Service Address. If the District is unable to make contact with the customer or an adult person living at the service address by written notice and by telephone, the District will make a good faith effort to visit the residence and leave a notice of imminent discontinuation of residential service (e.g. a door tag) and both a phone number and link to this Policy in a conspicuous place at the service address. The notice and both phone number and link to this Policy will be left at the residence at least five (5) days (but no less than 48 hours before discontinuation of service. The posted notice (e.g. door tag) will contain the same notice information required above in Section 3.1.a 4.0 EXTENSIONS AND OTHER ALTERNATIVE PAYMENT ARRANGEMENTS. Page 31 of 62 3 4.1 Time to Request an Extension or Other Alternative Payment Arrangement. If a customer is unable to pay a bill during the payment period, the customer may request an extension or other alternative payment arrangement described in this Section 64. If a customer makes a request prior to discontinuation of service by the District, the request will be reviewed by the FinanceGeneral Manager of the District. District decisions regarding extensions and other alternative payment arrangements are final and not appealable to the District Board of Directors under Section 12. 4.2 Extension. If approved by the District, a customer's payment of their unpaid balance may be temporarily extended. Such extension may not be provided more than 3 times during a 12 month time period. The District's FinanceGeneral Manager shall determine, in their discretion, whether to provide an extension, and how long an extension shall be provided, to the customer. The customer shall pay the full unpaid balance by the date set by the District and must remain current on all water service charges accruing during any subsequent billing periods. The extended payment date will be set forth in writing and provided to the customer. 4.3 Amortization. As determined by the District's FinanceGeneral Manager in their discretion, a customer's payment of their unpaid balance may be amortized over a period of months not to exceed twelve (12) months. If amortization is approved, the unpaid balance will be divided by the number of months in the amortization period, and that amount will be added to the customer's monthly bills for water service until fully paid. During the amortization period, the customer must remain current on all water service charges accruing during any subsequent billing periods. The amortization schedule and amounts due will be set forth in writing and provided to the customer. 4.4 Alternative Payment Schedule. As determined by the District's FinanceGeneral Manager in their discretion, a customer may pay their unpaid balance pursuant to an alternative payment schedule that will not exceed twelve (12) months. If approved, the alternative payment schedule may allow periodic lump-sum payments that do not coincide with the District's established payment date or may provide for payments made more or less frequently than the District's regular payment date. During the period of the alternative payment schedule, the customer must remain current on all water service charges accruing during any subsequent billing periods. The alternative payment schedule and amounts due will be set forth in writing and provided to the customer. 4.5 Failure to Comply. If a customer has been granted a payment arrangement under this Section 4 and (a) the original bill amount due is delinquent by at least sixty (60) days and (b) the customer fails to: (i) pay the unpaid charges by the extension date; (ii) pay an amount due under an amortization schedule; or (iii) pay an amount due under an alternative payment schedule by its due date, then the District may discontinue water service and customer forfeits the right to any payment arrangement under this section Page 32 of 62 4 for 612 months from the date that payment under an extension or alternative payment schedule was due. Customer may appeal this forfeited right to the General Manager, who in their sole discretion may reinstate that right. The District will post a final notice of intent to discontinue service in a prominent and conspicuous location at the service address at least 48 hoursfive (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the District under Section 12. 5.0 RECONNECTION OF SERVICE 5.1 Reconnection Requirements. Customers whose water service has been discontinued may contact the District regarding requirements to reconnect service. 5.2 Reconnection Fees. Reconnection will be subject to (a) payment of a reconnection fee of $40, (b) the amount of the delinquent account, including applicable interest or penalties, and (c) a security deposit, if required by the District. All payments must be made by cash, credit card, or certified funds. Requests to reconnect after 6:00 pm Monday through Thursday, or any time on Friday through Sunday, or holidays will be charged an after-hours reconnection fee of $210 and any applicable fees listed as (a)-(c) in this paragraph. 6.0 WHEN SERVICE WILL NOT BE DISCONTINUED 6.1 General. The District will not discontinue water service for delinquent accounts (a) on a Friday, Saturday, Sunday, legal holiday, or at any time during which the District’s office is not open to the public; during (b) during the District’s investigation of a timely customer complaint or request for investigation, or appeal of the District’s decision, under Section 12; or (c) during a District review of, or time period for, an -approved extension, amortization, or alternative payment schedulearrangement under Section 4, if the customer remains in compliance with one of thesethose payment plansarrangements. 6.2. Special Medical and Financial Circumstances with Alternative Payment Arrangement Agreement. TheIn addition to Section 6.1, the District will not discontinue water service if all of the following are met: i. The customer, or a tenant of the customer, submits to the District the certification of a licensed primary care provider that discontinuation of water service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided; ii. The customer demonstrates, as requireddescribedexplained below under Section 6.2.a., that they are financially unable to pay for residential service within the District’s normal billing cycle. The customer is deemed financially Page 33 of 62 5 unable to pay during the normal billing cycle if: (a) any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, California SSI/SSP, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or (b) the customer declares under penalty of perjury that the household’s annual income is less than 200 percent of the federal poverty level, or (c) the General Manager in their sole discretion deems the customer financially unable to pay; and iii. The customer is willing to enter into a written agreement with the District regarding an extension or other alternative payment arrangement under Section 4 above for the delinquent charges. The District will select terms and conditions of the payment plan that will be memorializedset forth in a written agreement. 6.2.a. Customer Demonstration, and District Review, of Qualifications. The customer is responsible for demonstrating that the qualifications in Section 6.2 above have been met. Upon receipt of documentation from the customer, the District will review the documentation within seven (7) days and either: (a) notify the customer of the terms and conditions selected by the District and require the customer’s signature on the payment plan agreement; (b2) request additional information from the customer; or (3c) notify the customer that they do not meet the qualifications. 6.2.b. Failure to Comply. The District may discontinue water service if a customer, who has been granted an alternate payment arrangement under this Section 6, (a) is delinquent for sixty (60) days or more and (b) fails to do either of the following: (ai) pay any amount due under the payment plan; or (bii) pay their current charges for water service. The District will post a final notice of intent to discontinue service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the District under Section 12. 7.0 SPECIFIC PROGRAM FOR LOW INCOME CUSTOMERS 7.1 Fee Waiver and Reconnection Fees. For residential customers who demonstrate household income below 200 percent of the federal poverty linelevel, the District will: 7.1.a Upon request by the customer, waive interest charges or penalties on delinquent bills once every 12 months. 7.1.b. Limit a reconnection of service fee during normal operating hours at an amount not to exceed fifty dollars ($50) and during nonoperational hours at an amount Page 34 of 62 6 not to exceed one hundred fifty dollars ($150), but neither reconnection fee is to exceed the actual cost of reconnection if it is less. Both reconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021. 7.2 How to Qualify as a Low Income Customer. The customer is deemed to have an income below 200 percent of the federal poverty line level if: (a) any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, California SSI/SSP, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or (b) the customer declares under penalty of perjury that the household’s annual income is less than 200 percent of the federal poverty level. 8.0 PROCEDURES FOR OCCUPANTS OR TENANTS TO BECOME CUSTOMERS OF THE DISTRICT 8.1 Applicability. This section only applies when a property owner, landlord, manager, or operator of a residential service address is listed as the customer of record and has been issued a notice of intent to discontinue water service due to nonpaymentunder Section 3. 8.2. Agreement to District Terms and Conditions of Service. The District shall make good faith effort to inform the residential occupants, by means of written notice, when the account is in arrears that service will be terminated at least 10 days prior to the termination. The written notice shall indicate the District will make service available to the actual residential occupants if occupant agrees to both the District’s terms and conditions of service and the District’s Rules and Regulations for Water Service, which are available at www.ylwd.com or upon request. 8.2.b. If one or more of the occupants are willing and able to assume responsibility for the subsequent non-delinquent charges to the account to the satisfaction of the District, the District will make service available to the occupants who have met those requirements. 8.3 Verification of Tenancy. In order for the occupant not to be responsible for the amount due on the delinquent account to be waived, an occupant who becomes a customer will verify that the delinquent account customer of record is, or was, the landlord, manager, or agent of the dwelling. VerificationvVerification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code, [at the discretion of the District.]. 8.4 Deductions from Rental Payment. Pursuant to Government Code Sections 60371(d) and 116916(e), any occupant who becomes a customer of the District pursuant to this Section 8 and whose periodic payments, such as rental payments, include charges for residential water service, where those charges are not separately stated, may deduct from the periodic rental payment each payment period all reasonable charges paid to the District for those services during the preceding payment period. The District has no Page 35 of 62 7 authority to enforce Section 60371(d) or 116916(e) and any such decision by the occupant to deduct charges is made by the occupant and not authorized by the District. 9.0 OTHER REMEDIES 9.1 In addition to discontinuation of water service, the District may pursue any other remedies available in law or equity for nonpayment of water service charges, including, but not limited to: (a) securing delinquent amounts by filing liens on real property, (b) filing a claim or legal action, or (c) referring the unpaid amount to collections. In the event a legal action is decided in favor of the District, the District will be entitled to the payment of all costs and expenses, including attorneys’ fees and accumulated fees. 10.0 DISCONTINUATION OF WATER SERVICE FOR OTHER CUSTOMER VIOLATIONS Page 36 of 62 8 10.1 The District reserves the right to discontinue water service for any violations of District ordinances, rules, or regulations other than for nonpayment of a Delinquent Account. 11.0 FEES AND CHARGES INCURRED 11.1 Except as otherwise expressly stated in this Policy, any fees and charges incurred by a customer under any other District rules, regulations, or policies of the District will be due and payable as established in said rules, regulations, or policies. 12.0. PROCEDURES TO CONTEST A WATER BILL 12.1 Time to Initiate a Complaint or Request an Investigation. Any customer may initiate a written complaint to, or request an investigation by, the General Manager into the charges on their bill within twenty-seven (27) days of the “bill date” on the contested bill. The District will not discontinue water service during an investigation of a timely complaint or request. The District may, in its discretion, review untimely complaints or requests for investigation; however, such untimely complaints or requests are not appealable to the District Board of Directors. 12.2 Review by District. Upon receipt of written complaint or /request, the General Manager shall review the complaint and/or conduct an investigation determined to be appropriate in the General Manager’s sole discretion. The General Manager’s review will include consideration of whether the customer may receive an amortization (described below in Section 5.2), or extension or alternative payment schedule under this PolicySection 4. During the review and/or investigation, the customer will be provided an extension from its noted due date in order to avoid late fees , but the customer will not be provided an extension of the 60-day time period provided under Section 2.3. The investigation shall be completed within 10 business days from receipt of the written complaint or /request, where the customer shall be notified of the General Manager’s decision. The decision of the General Manager is final. 12.3 Outcomes of the Decision. If the review and/or investigation results in favor of the customer, where the billing is incorrect, an adjustment shall be applied to the customer account. If the billing is correct, the bill balance shall be due 10 days from the customer being notified of the General Manager’s decision. If before completion of the investigation, additional bill(s) become due, the customer is required to make payment of the entire amount due by the specified due date. Failure to do so may result in assessed late fees or discontinuation of service, due to non-payment, in accordance with this Policy. 12.312.4 Appeal to Board of Directors. Any customer, whose timely complaint or request for an investigation under this Section 12 resulted in a decision unsatisfactory to the customer, may appeal the decision to the District Board of Directors by filing a written Page 37 of 62 9 notice of appeal with the District Secretary at [physical address and email address??] within ten (10) days of the District's mailing of its determination. Upon receiving the notice of appeal, the District Secretary will set the matter to be heard at an upcoming Board meeting and mail the customer written notice of the time and place of the hearing at least seven (7) days before the meeting. The decision of the Board is final. 13. PUBLICATION ON THE DISTRICT WEBSITE AND TRANSLATED VERSIONS 13.1 This Policy is available on the District’s website at www.ylwd.com. This Policy and all written notices issued under this Policy will beare provided in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by at least ten percent (10%) of the population within the District’s service area. Page 38 of 62 Resolution No. 2019-XX Adopting a Policy for Discontinuation of Residential Water Service for Nonpayment 1 RESOLUTION NO. 2019-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING A POLICY FOR DISCONTINUATION OF RESIDENTIAL WATER SERVICE FOR NONPAYMENT WHEREAS,the Yorba Linda Water District (“District”) is governed, in the execution of the collection of delinquent accounts, by Sections 116900 - 116926 of the California Health & Safety Code, which is known as the Water Shutoff Protection Act (“Act”), and Sections 60370 – 60375.5 of the California Government Code; and WHEREAS,the Act, which was signed into law in September 2018 and takes effect on February 1, 2020, requires the District to adopt a Policy for Discontinuation of Residential Water Service (“Discontinuation Policy”), which establishes policies and procedures when a water bill becomes delinquent; and WHEREAS,existing law (California Safe Drinking Water Act) declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes; and WHEREAS,it is the intent of the Legislature to minimize the number of Californians who lose access to water service due to inability to pay because water service discontinuations threaten human health and well-being, and have disproportionate impact on infants, children, the elderly, low-income families, communities of color, people for whom English is a second language, physically disabled persons, and persons with life-threatening medical conditions; and WHEREAS,when there is a delinquent bill, all Californians, regardless of whether they pay a water bill directly, should be treated fairly, and fair treatment includes the ability to contest a bill, seek alternative payment schedules, and demonstrate medical need and severe economic hardship; and WHEREAS,it is the intent of the Legislature that the Act provide additional procedural protections and expand upon the procedural safeguards in the Government Code which existed as of January 1, 2018 and relate to utility service disconnections; and WHEREAS,the District’s Discontinuation Policy is written and adopted in accordance with the Act and its Legislative intent. Page 39 of 62 Resolution No. 2019-XX Adopting a Policy for Discontinuation of Residential Water Service for Nonpayment 2 NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District (“Board”) as follows: Section 1.The Board hereby finds and declares that each of the foregoing Recitals are true and correct. Section 2.The Discontinuation Policy is hereby approved and adopted substantially in the form on file with the Secretary of the Board. Section 3.By adoption of the Discontinuation Policy, the Board is authorizing the General Manager and their designee to exercise certain duties and responsibilities under the Discontinuation Policy that are essential for the operation of the District. PASSED AND ADOPTED this 26th day of November 2019, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Brooke Jones, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed and approved as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 40 of 62 YORBA LINDA WATER DISTRICT 3010-009-POL Page 1 of 7 DISCONTINUATION OF RESIDENTIAL WATER SERVICE FOR NONPAYMENT Dept/Div:Finance Approved By:Resolution No. 2019-XX Effective Date:February 1, 2020 Applicability:Districtwide Supersedes:N/A See Also: 1.0 General Policy and Authorization 1.1 Governing Authority The Yorba Linda Water District, as an agency of the state, formed as a special district pursuant to the County Water District Act (Water Code Section 30000 et seq.) (“District”), is governed in the execution of the collection of delinquent accounts by California Government Code Sections 60370 – 60375.5. As an urban or community water system that supplies water to more than 200 service connections, the District is also governed, effective February 1, 2020, by Sections 116900 – 116926 of the California Health & Safety Code, which is known as the Water Shutoff Protection Act. 1.2 Discontinuation Policy The Yorba Linda Water District Discontinuation of Residential Water Service for Nonpayment Policy (“Policy”) establishes policies and procedures when a water bill becomes delinquent. Discontinuance of water service for nonpayment is considered the final phase of the collection procedure and will be instituted only after both sufficient notification and all other reasonable payment alternatives have been exhausted. To the extent this Policy conflicts with any other District rules, regulations, or policies, this Policy shall control. 1.3 General Manager Authority By adoption of this Policy, the Board is authorizing the General Manager and their designee to exercise certain duties and responsibilities under this Policy that are essential for the operation of the District. 1.4 Contact Information For questions or assistance regarding your water bill, including options to avoid discontinuation of service for nonpayment, the District’s Customer Service staff can be reached at 714-701-3000. Customers may also visit the District’s Customer Service desk in person Monday through Thursday, from 7:00 a.m. to 6:00 p.m., except on District holidays. 2.0 Discontinuation of Service for Nonpayment on Delinquent Accounts 2.1 Delinquent Accounts Delinquent accounts are any water service bill that remains unpaid by 5:00 p.m. on the 27th day after the billing date. This Policy applies to the collection of delinquent accounts. 2.2 Time Period to Discontinue Service The District will discontinue water service for water service charges that have become delinquent for at least sixty (60) days. Page 41 of 62 YORBA LINDA WATER DISTRICT 3010-009-POL Page 2 of 7 3.0 Notices to Customer 3.1 Written Notice to Customer or Occupant/Water Consumer at Service Address The District will provide a mailed notice to the customer of record by 5:00 p.m. on the 29th day after the billing date (but no less than thirty (30) days before discontinuation of water service). A ten percent (10%) late fee will be assessed at that time. If the customer’s address is not the address of the property to which residential service is provided, the District will also send notice to the address of the property of which residential service is provided and will be addressed to “Occupant/Water Consumer”. 3.1.1 The mailed notice required in Section 3.1 above will contain: 3.1.1.1 the name and address of the customer; 3.1.1.2 the amount of the delinquency; 3.1.1.3 the date by which payment or payment arrangements must be made to avoid discontinuance of service; 3.1.1.4 the procedure by which the customer may request an extension or alternative payment arrangement described in Section 4; 3.1.1.5 the procedure by which the customer may contest a water bill and appeal as described in Section 12; 3.1.1.6 information regarding the availability of financial assistance, including private, local, state, or federal sources, if applicable; and 3.1.1.7 the telephone number where the customer may request a payment arrangement or receive additional information from the District. 3.2 Telephonic Notice If the mailed notice is returned through the mail as undeliverable or the customer has not paid their delinquent account at least ten (10) days before discontinuation of service, the District will also make a reasonable, good faith effort to contact the customer of record, or an adult person living at the premises of the customer, by telephone. The District will offer to provide in writing a copy of this Policy and to discuss options to avert discontinuation of water service for nonpayment, including the possibility of an extension or other payment arrangement listed in Section 4 below. 3.3 Posting of Notice to Occupants at Service Address If the District is unable to make contact with the customer or an adult person living at the service address by written notice and by telephone, the District will make a good faith effort to visit the residence and leave a notice of imminent discontinuation of residential service (e.g. a door tag) and both a phone number and link to this Policy in a conspicuous place at the service address. The notice and both phone number and link to this Policy will be left at the residence at least 48 hours before discontinuation of service. The posted notice (e.g. door tag) will contain the same notice information required above in Section 3.1.1. Page 42 of 62 YORBA LINDA WATER DISTRICT 3010-009-POL Page 3 of 7 4.0 Extensions and Other Alternative Payment Arrangements 4.1 Time to Request an Extension or Other Alternative Payment Arrangement If a customer is unable to pay a bill during the payment period, the customer may request an extension or other alternative payment arrangement described in this Section 4. If a customer makes a request prior to discontinuation of service by the District, the request will be reviewed by the General Manager. District decisions regarding extensions and other alternative payment arrangements are final and not appealable to the District Board of Directors under Section 12. 4.2 Extension If approved by the District, a customer’s payment of their unpaid balance may be temporarily extended. Such extension may not be provided more than 3 times during a 12 month time period. The General Manager shall determine, in their discretion, whether to provide an extension, and how long an extension shall be provided to the customer. The customer shall pay the full unpaid balance by the date set by the District and must remain current on all water service charges accruing during any subsequent billing periods. The extended payment will be set forth in writing and provided to the customer. 4.3 Amortization As determined by the General Manager in their discretion, a customer’s payment of their unpaid balance may be amortized over a period of months not to exceed twelve (12) months. If amortization is approved, the unpaid balance will be divided by the number of months in the amortization period, and that amount will be added to the customer’s monthly bills for water service until fully paid. During the amortization period, the customer must remain current on all water service charges accruing during any subsequent billing periods. The amortization schedule and amounts due will be set forth in writing and provided to the customer. 4.4 Alternative Payment Schedule As determined by the General Manager in their discretion, a customer may pay their unpaid balance pursuant to an alternative payment schedule that will not exceed twelve (12) months. If approved, the alternative payment schedule may allow periodic lump-sum payments that do not coincide with the District’s established payment date or may provide for payments made more or less frequently than the District’s regular payment date. During the period of the alternative payment schedule, the customer must remain current on all water service charges accruing during any subsequent billing periods. The alternative payment schedule and amounts due will be set forth in writing and provided to the customer. 4.5 Failure to Comply If a customer has been granted a payment arrangement under this Section 4 and (a) the original bill amount is delinquent by at least sixty (60) days and (b) the customer fails to: (i) pay the unpaid charges by the extension date; (ii) pay an amount due under an amortization schedule; or (iii) pay an amount due under an alternative payment schedule by its due date, then the District may discontinue water service and customer forfeits the right to any payment arrangement under this section for 6 months from the date that payment under an extension or alternative payment schedule was due. Customer may appeal this forfeited right to the General Manager, who in their sole discretion may reinstate that right. The District will post a final notice of intent to discontinue service in a prominent and conspicuous location at the service address at least 48 hours before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the District under Section 12. Page 43 of 62 YORBA LINDA WATER DISTRICT 3010-009-POL Page 4 of 7 5.0 Reconnection of Service 5.1 Reconnection Requirements Customers whose water service has been discontinued may contact the District regarding requirements to reconnect. 5.2 Reconnection Fees Reconnection will be subject to (a) payment of a reconnection fee of $40, (b) the amount of the delinquent account, including applicable interest or penalties, and (c) a security deposit, if required by the District. All payments must be made by cash, credit card, or certified funds. Requests to reconnect after 6:00 p.m. Monday through Thursday, or any time on Friday through Sunday, or holidays will be charged an after-hours reconnection fee of $210 and any applicable fees listed as (a)-(c) in the paragraph. 6.0 When Service Will Not Be Discontinued 6.1 General The District will not discontinue water service for delinquent accounts (a) on a Friday, Saturday, Sunday, legal holiday, or at any time during which the District’s office is not open to the public; (b) during the District’s investigation of a timely customer complaint or request for investigation, or appeal of the District’s decision, under Section 12; or (c) during a District review of, or time period for, an approved extension, amortization, or alternative payment arrangement under Section 4, if the customer remains in compliance with one of those payment arrangements. 6.2 Special Medical and Financial Circumstance with Alternative Payment Arrangement Agreement In addition to Section 6.1, the District will not discontinue water service if all of the following are met: 6.2.1 The customer, or a tenant of the customer, submits to the District the certification of a licensed primary care provider that discontinuation of water service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided; 6.2.2 The customer demonstrates, as described below under Section 6.3, that they are financially unable to pay for residential service within the District’s normal billing cycle. The customer is deemed financially unable to pay during the normal billing cycle if: (a) any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, California SSI/SSP, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or (b) the customer declares under penalty of perjury that the household’s annual income is less than 200 percent of the federal poverty level; and 6.2.3 The customer is willing to enter into a written agreement with the District regarding an extension or other alternative payment arrangement under Section 4 above for the delinquent charges. The District will select terms and conditions of the payment plan that will be set forth in a written agreement. Page 44 of 62 YORBA LINDA WATER DISTRICT 3010-009-POL Page 5 of 7 6.3 Customer Demonstration, and District Review, or Qualifications The customer is responsible for demonstrating that the qualifications in section 6.2 above have been met. Upon receipt of documentation from the customer, the District will review the documentation within seven (7) days and either: (a) notify the customer of the terms and conditions selected by the District and require the customer’s signature on the payment plan agreement; (b) request additional information from the customer; or (c) notify the customer that they do not meet the qualifications. 6.4 Failure to Comply The District may discontinue water service if a customer, who has been granted an alternative payment arrangement under this section 6, (a) is delinquent for sixty (60) days or more and (b) fails to do either of the following : (i) pay any amount due under the payment plan; or (ii) pay their current charges for water service. The District will post a final notice of intent to discontinue service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the District under Section 12. 7.0 Specific Program for Low Income Customers 7.1 Fee Waiver and Reconnection Fees For residential customers who demonstrate household income below 200 percent (200%) of the federal poverty level, the District will: 7.1.1 Upon request by the customers, waive interest charges or penalties on delinquent bills once every 12 months. 7.1.2 Limit a reconnection of service fee during normal operating hours at an amount not to exceed fifty dollars ($50) and during nonoperational hours at an amount not to exceed one hundred fifty dollars ($150), but neither reconnection fee is to exceed the actual cost of reconnection if it is less. Both reconnection fees shall be shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021. 7.2 How to Qualify as a Low Income Customer The customer is deemed to have an income below 200 percent (200%) of the federal poverty level if: (a) any member of the customer’s household is a current recipient of CalWORKS, CalFresh, general assistance, Medi-Cal, California SSI/SSP, or California Special Supplemental Nutrition Program for Woman, Infant, and Children, or (b) the customer declares under penalty of perjury that the household’s annual income is less than 200 percent (200%) of the federal poverty level. 8.0 Procedures for Occupants or Tenants to Become Customers of the District 8.1 Applicability This section only applies when a property owner, landlord, manager, or operator of a residential service address is listed as the customer of record and has been issued a notice of intent to discontinue water service under Section 3. Page 45 of 62 YORBA LINDA WATER DISTRICT 3010-009-POL Page 6 of 7 8.2 Agreement to District Terms and Conditions of Service The District shall make good faith effort to inform the residential occupants, by means of written notice, when the account is in arrears that service will be terminated at least 10 days prior to the termination. The written notice shall indicate the District will make service available to the actual residential occupants if occupant agrees to both the District’s terms and conditions of service and the District’s Rules and Regulations for Water Service, which are available at www.ylwd.com or upon request. 8.2.1 If one or more of the occupants are willing and able to assume responsibility for the subsequent non-delinquent charges to the account to the satisfaction of the District, the District will make service available to those occupants who have met those requirements. 8.3 Verification of Tenancy In order for the occupant not to be responsible for the amount due on the delinquent account, an occupant who become a customer will verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code [at the discretion of the District]. 8.4 Deduction from Rental Payments Pursuant to Government Code Sections 60371(d) and 116916(e), any occupant who becomes a customer of the District pursuant to this Section 8 and whose periodic payments, such as rental payments, include charges for residential water service, where those charges are not separately stated, may deduct from the periodic rental payment each payment period all reasonable charges paid to the District for those services during the preceding payment period. The District has no authority to enforce Section 60371(d) or 116916(e) and any such decision by the occupant to deduct charges is made by the occupant and not authorized by the District. 9.0 Other Remedies 9.1 In addition to discontinuance of water service, the District may pursue any other remedies available in law or equity for nonpayment of water service charges, including, but not limited to: (a) securing delinquent amounts by filing liens on real property, (b) filing a claim or legal action, or (c) referring the unpaid amount to collections. In the event a legal action is decided in favor of the District, the District will be entitled to the payment of all costs and expenses, including attorneys’ fees and accumulated fees. 10.0 Discontinuation of Water Service for Other Customer Violations 10.1 The District reserves the right to discontinue water service for any violations of District ordinances, rules, or regulations other than for nonpayment of a Delinquent Account. 11.0 Fees and Charges Incurred 11.1 Except as otherwise expressly state in this Policy, any fees and charges incurred by a customer under any other District rules, regulations, or policies will be due and payable as established in said rules, regulations, and policies. Page 46 of 62 YORBA LINDA WATER DISTRICT 3010-009-POL Page 7 of 7 12.0 Procedures to Contest a Water Bill 12.1 Time to Initiate a Complaint or Request an Investigation Any customer may initiate a written complaint to, or request an investigation by, the General Manager into the charges on their bill within twenty-seven (27) days of the “bill date” on the contested bill. The District may, in its discretion, review untimely complaints or requests for investigations; however, such untimely complaints or requests are not appealable to the District Board of Directors. 12.2 Review by District Upon receipt of written complaint or request, the General Manager shall review the complaint and/or conduct an investigation determined to be appropriate in the General Manager’s sole discretion. The General Manager’s review will include consideration of whether the customer may receive an extension or alternative payment schedule under Section 4. During the review and/or investigation, the customer will be provided an extension from its noted due date in order to avoid late fees, but the customer will not be provided an extension of the 60-day time period provided under Section 2.3. The investigation shall be completed within 10 days from receipt of the written complaint or request, where the customer shall be notified of the General Manager’s decision. 12.3 Outcomes of Decision If the review and/or investigation results in favor of the customer, where the billing is incorrect, an adjustment shall be applied to the customer account. If the billing is correct, the bill balance shall be due ten (10) days form the customer being notified of the General Manager’s decision. If before completion of the investigation, additional bill(s) become due, the customer is required to make payment of the entire amount due by the specified due date. Failure to do so may result in assessed late fees or discontinuation of service, due to nonpayment, in accordance with this Policy. 12.4 Appeal to Board of Directors Any customer, whose timely complaint or request for an investigation under this Section 12 resulted in a decision unsatisfactory to the customer, may appeal the decision to the District Board of Directors by filing a written notice of appeal with the District Secretary at bodsecretary@ylwd.com within the ten (10) days of the District’s mailing of its determination. Upon receiving the notice of appeal, the District Secretary will set the matter to heard at an upcoming Board meeting and mail the customer written notice of the time and place of the hearing at least seven (7) days before the meeting. The decision of the Board is final. 13.0 Publication on the District Website and Translated Versions 13.1 This Policy is available on District’s website at www.ylwd.com/customer-service/SB998-Policy. This Policy and all written notice issued under this Policy are provided in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by at least ten percent (10%) of the population within the District’s service area. Page 47 of 62 ITEM NO. 8.1. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Andrew B. Gagen, General Counsel SUBJECT:Amending the General Manager's Employment Agreement RECOMMENDATION: That the Board of Directors consider whether to: (1) approve the Sixth Amendment to the Employment Agreement for the Position of General Manager as negotiated by the District's Designated Representative; and (2) adopt Resolution No. 2019-XX approving the Classification and Salary for the General Manager effective September 1, 2019, and rescinding Resolution No. 18-33. BACKGROUND: Pursuant to Paragraph 7 of the Employment Agreement for the Position of General Manager with Andrew P. (“Marc”) Marcantonio dated August 7, 2014 (“Agreement”), the Board of Directors may review and evaluate the General Manager’s performance on an annual, quarterly, or other basis, or pursuant to the District's Employee Performance Evaluation and Merit Increase Policy (Policy No. 7010-010). The Board of Directors completed its annual review of the General Manager’s performance in November 2019. During October and November 2019, the Board directed the District’s Designated Representative to negotiate terms of the General Manager's compensation. During oral presentation of this agenda item, and in accordance with the Brown Act, the Designated Representative will “report a summary of a recommendation” regarding the negotiated terms for the Board to consider whether to take final action as recommended above. As a result of these negotiations and the Board of Directors’ positive performance evaluation of the General Manager, and in the interest of maintaining the employment relationship, the Board of Directors may wish to amend the Agreement as follows: General Manager's annual base salary to be increased 5% from $230,332.72 to $241,849.35, effective September 1, 2019. In addition, General Manger to receive a one-time performance-based payment of four thousand five hundred dollars ($4,500.00) upon execution of the Sixth Amendment to the Agreement. Page 48 of 62 As required in Section 3 (“Employee Compensation”) of the Agreement: "Any increase is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual salary and the effective date of the new salary and such amendment is adopted by the Board at the duly noticed public meeting". Additionally, in accordance with California Code of Regulations, Title 2, § 570.5 and the Public Employee Retirement Law at Government Code § 20636, all Public Agency members’ pay amounts are required to be paid pursuant to a publicly available pay schedule that has been approved and adopted by the employer’s governing body. To be in compliance, staff created Exhibit A, General Manager Classification and Salary, effective September 1, 2019, which defines the amended salary for the General Manager. Attached to this Agenda Report are copies of the Sixth Amendment of the Agreement, and Resolution No. 2019-XX with Exhibit A. PRIOR RELEVANT BOARD ACTION: On November 13, 2018, the Board of Directors approved the Fifth Amendment of the Agreement and Resolution No. 18-33, approving the Classification and Salary for the General Manager effective September 2, 2018. ATTACHMENTS: 1.6th Amendment to General Manager's Employment Agreement 2.Resolution Page 49 of 62 SIXTH AMENDMENT TO EMPLOYMENT AGREEMENT FOR POSITION OF GENERAL MANAGER This Sixth Amendment to Employment Agreement for Position of General Manager (“Sixth Amendment”) is made and entered into this 26th day of November, 2019, by and between the Yorba Linda Water District, hereinafter referred to as “District” or as “Employer,” and Andrew P. Marcantonio, hereinafter referred to as “Employee”. RECITALS WHEREAS, the District and Employee entered into an Employment Agreement for Position of General Manager on August 7, 2014, which was amended by the First Amendment to Employment Agreement for Position of General Manager on May 11, 2015, the Second Amendment to Employment Agreement for Position of General Manager on November 21, 2016, the Third Amendment to Employment Agreement for Position of General Manager on December 22, 2016, the Fourth Amendment on December 12, 2017, and the Fifth Amendment on November 13, 2018 (collectively “the Agreement”), according to which Employee shall serve as the General Manager of the Yorba Linda Water District. WHEREAS, under Section 7 of the Agreement, Employee is eligible for salary adjustments and the Board of Directors may review and evaluate Employee's performance on an annual, quarterly, or other basis, or pursuant to the District's performance evaluation policy; WHEREAS, the Board of Directors completed its annual review of Employee’s performance in November 2019; and WHEREAS, based on the Board of Directors’ positive performance review and in the interest of maintaining the employment relationship, the Board of Directors would like to amend the terms of the Agreement. AGREEMENT NOW THEREFORE, in consideration of the mutual covenants herein contained, the District and Employee agree to amend the Agreement as follows: Section 1 of the Agreement is amended to provide as follows: Page 50 of 62 1. Term of Employment. The term of this Agreement is extended two (2) years, commencing September 2, 2020, and ending September 1, 2022 ("Term"), unless extended during the term of this Agreement by separate action of the Parties or terminated before the expiration of the term in accordance with the provisions of this Agreement. Section 3 of the Agreement is amended to provide as follows: 3. Employee Compensation. Effective September 1, 2019, Employee shall receive a 5% increase of his an annual base salary, which will increase his salary to two hundred forty one thousand eight hundred forty nine dollars and thirty five cents ($241,849.35), payable in twenty-six equal biweekly installments, for performance of his service as General Manger. In addition, Employee shall receive a one-time performance-based payment of four thousand five hundred dollars ($4,500.00) upon execution of this Amendment. The annual base salary may be adjusted during the Term at the sole discretion of the Board. Any such increase in salary shall not be construed as altering or amending any provision of this Agreement, except the Employee’s compensation amount, or unless specifically agreed to in writing between the District and Employee. Any increase is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual base salary and the effective date of that new salary and such amendment is adopted by the Board in accordance with the Ralph M. Brown Act (California Government Code 54950 et seq.). GENERAL PROVISIONS 1.All other terms in the Agreement remain unchanged and in full force and effect. 2.This Amendment may be signed in counterparts. Brooke Jones Date Board President Andrew P. Marcantonio Date General Manager APPROVED AS TO FORM: Kidman Gagen Law LLP By:______________________ Andrew B. Gagen, General Counsel Page 51 of 62 Resolution No. 2019-XX Adopting the General Manager Classification and Salary 1 RESOLUTION NO. 2019-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE GENERAL MANAGER CLASSIFICATION AND SALARY EFFECTIVE SEPTEMBER 1, 2019 AND RESCINDING RESOLUTION NO. 18-33 WHEREAS,pursuant to California Code of Regulations, Title 2, §570.5, CalPERS requires governing bodies of local agencies contracting with CalPERS to approve and adopt a publicly available pay schedule in accordance with the Ralph M. Brown Act (California Government Code 54950 et seq.); and WHEREAS,the Board of Directors completed its annual review of the General Manager’s performance, and thereafter directed the District’s Designated Representative to negotiate terms of the General Manager's compensation; the Designated Representative reported “a summary of a recommendation” regarding the negotiated terms for the Board to consider whether to take final action; and WHEREAS,as a result of these negotiations and the Board of Directors’ positive performance evaluation of the General Manager, and in the interest of maintaining the employment relationship, the Board of Directors took final action at a Board meeting on November 26, 2019, to, in part, increase the General Manager’s base salary; and WHEREAS, the Board of Directors desires to adopt the General Manager Classification and Salary effective September 1, 2019 as set forth in Exhibit A and attached hereto; and WHEREAS,on November 13, 2018, the Board of Directors previously adopted Resolution No. 18-33 to approve and adopt the General Manager Classification and Salary, effective September 2, 2018. Page 52 of 62 Resolution No. 2019-XX Adopting the General Manager Classification and Salary 2 NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1.The General Manager Classification and Salary as set forth in Exhibit A and attached hereto is approved and adopted, effective September 1, 2019. Section 2.That Resolution No. 18-33 is hereby rescinded. PASSED AND ADOPTED this 26th day of November 2019, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Brooke Jones, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed and approved as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 53 of 62 Resolution No. 2019-XX Adopting the General Manager Classification and Salary 3 EXHIBIT A Yorba Linda Water District General Manager Classification and Salary Effective September 1, 2019 CLASSIFICATION TITLE SALARY FLSA General Manager Hourly $ 116.27 Exempt Monthly $ 20,154.11 Yearly $241,849.35 Page 54 of 62 ITEM NO. 10.1. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Annie Alexander, Executive Assistant/Board Secretary SUBJECT:Directors' Reports The Directors will report on their attendance at the following events: 1.OC LAFCO - November 13, 2019 (Nederhood - As Needed) 2.YL Planning Commission - November 13, 2019 (Hawkins - As Needed) 3.OEHHA Public Health Goal Initiation Webinar - November 15, 2019 (Miller) 4.WACO Planning Committee - November 19, 2019 (Jones/Nederhood) 5.SAWPA Commission - November 19, 2019 (Jones - As Needed) 6.YL City Council - November 19, 2019 (Hawkins) 7.MWDOC Board - November 20, 2019 (Nederhood) 8.OCWA - November 20, 2019 (Jones/Miller/Nederhood) 9.OCWD Board - November 20, 2019 (Jones) 10.OCSD Board - November 20, 2019 (Hawkins) Page 55 of 62 ITEM NO. 11.3. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Divya Agrawalla, Principal Engineer SUBJECT:Joint Agency Committee with City of Placentia (Jones/Hawkins) Minutes of the meeting held Tuesday, October 29, 2019 at 3:30 p.m. are included in the agenda packet. Next meeting is scheduled Wednesday, January 15, 2020 at 3:00 p.m. The minutes from this meeting are attached for reference. ATTACHMENTS: 1.Minutes Page 56 of 62 Minutes of the YLWD-City of Placentia Joint Agency Committee Meeting Held October 29, 2019 at 3:30 p.m.1 MINUTES OF THE YORBA LINDA WATER DISTRICT JOINT AGENCY COMMITTEE MEETING WITH CITY OF PLACENTIA Tuesday, October 29, 2019, 3:30 PM Placentia City Hall – 401 E Chapman Ave, Placentia CA 92870 1.CALL TO ORDER The meeting was called to order at 3:45 p.m. 2.ATTENDEES YLWD COMMITTEE MEMBERS YLWD STAFF Brooke Jones, President Marc Marcantonio, General Manager Phil Hawkins, Vice President Brett R. Barbre, Asst General Manager Divya Agrawalla, Principal Engineer Jeff McDonald, Maintenance Superintendent Pasquale Talarico, Director of Public Affairs CITY COMMITTEE MEMBERS PLACENTIA STAFF Rhonda Shader, Mayor Damien Arrula, City Administrator Jeremy B. Yamaguchi, Councilman Luis Estevez, Director of Public Works 3.PUBLIC COMMENTS None. 4.DISCUSSION ITEMS 4.1.Future Housing Developments Lakeview Senior Center - YLWD staff provided information on a new development at 18222 Lakeview Ave, Yorba Linda, CA, where the developer had requested water and sewer services from YLWD. A Will Serve letter had been provided in 2015 stating that YLWD will provide service, stating a fact that there is a nearby City of Placentia sewer. A new Will Serve letter was provided on October 28, 2019 clarifying that the property lies within the jurisdictional boundaries of YLWD and YLWD has the ability to service the property with water and sewer and that this letter supersedes the 2015 letter. Mr. Arrula and Mayor Shader concurred that properties within YLWD’s jurisdiction should be served by YLWD unless YLWD does not have the capability to do so. This item was marked as resolved by the City of Placentia that YLWD would provide water and sewer service to this new development. Page 57 of 62 Minutes of the YLWD-City of Placentia Joint Agency Committee Meeting Held October 29, 2019 at 3:30 p.m.2 YLWD provided a hard copy of the new Will Serve letter to Mr. Estevez and will provide a digital copy via email as well (digital copy provided on October 31, 2019). 4.2.Sewer Service Billing Rates Issue resolved and will be removed from future meeting agendas. 4.3.Reimbursement of Stormwater Line Expenses City needs a document from YLWD that says that YLWD has not received any payment for completing the stormwater line, including the amount of money owed by the City to YLWD. City will provide YLWD with records of how the money owed to YLWD was spent. YLWD’s legal counsel will prepare an amendment to the agreement. Amendment to be finalized in December 2019. YLWD and the City will have a meeting to discuss the terms of the agreement before it is finalized. The City has requested that a committee be formed to resolve this issue with representatives from the City and YLWD. 4.4.PFOA/PFOS Testing and Mitigation The water served by YLWD to its customers has levels (PFOA + PFOS) that are below the current Response Level set by the State. The Response Level is expected to be lowered in the coming months, in which case YLWD’s water may need treatment. Once the Response Levels are lowered, YLWD will take all of its 11 groundwater wells out of service and will serve import water from the Metropolitan Water District of Southern California. The wells would then be brought back on line once YLWD constructs a water treatment plant. The public has been notified digitally via YLWD’s newsletter about PFOA and PFOS. Discussion touched on a report issued by EWG (Environmental Working Group) followed. YLWD staff noted that EWG is a focus group known for sensationalizing environmental concerns. Page 58 of 62 Minutes of the YLWD-City of Placentia Joint Agency Committee Meeting Held October 29, 2019 at 3:30 p.m.3 4.5.City Street Rehab Work and Coordination with Utility Improvements The City representatives stated that they have provided every utility with their paving plan. YLWD noted that they should not be responsible for paying to raise the valve cans and manholes if they are paved over by the City in their repaving efforts. Mr. Marcantonio made it clear that this is not a cost that should be passed down to the YLWD customers. The City should leave YLWD facilities in the same condition as before the repaving occurred. YLWD is in discussion with its legal counsel regarding this. Two manholes were damaged by the City’s contractor, ONYX Paving Company, and repaired by YLWD on an emergency basis. YLWD has sent an invoice in the amount of $4,901.19 for reimbursement. YLWD provided a hard copy of the invoice to Mr. Estevez and will provide a digital copy along with details (digital copy provided on October 31, 2019). ONYX Paving provided a check in the amount of $4,901.19 to YLWD in person on November 12, 2019. The City was requested to copy Mr. Marcantonio on future repaving emails sent to utilities. 4.6.Regular Updates on GSWC and YLWD Projects and Capital Improvements to Share with the Community via City’s Social Media and Other Communication Outlets: No discussion regarding this matter took place. 4.7.Pending Water Related Legislation Updates from Sacramento YLWD noted that SB-1 was vetoed, which was a win for the water industry. AB-756 negatively impacts the water industry as a water agency will be required to implement an onerous public notification program if the agency continues to serve water above Response Levels. Prior to this legislation (which goes into effect on January 1, 2020), the State only had recommendations regarding a water district serving water above the Response Level. In essence, this new legislation is a defacto law making it impossible for water districts to continue to serve water above the Response Levels even though there has been no definitive scientific study that says these levels are the levels to protect public health. This legislation also does not provide adequate time for a water agency to construct treatment facilities to meet the upcoming reduced Response Levels. Discussion touched on public education efforts related to the scheduled release of a movie titled “Dark Waters”. Page 59 of 62 Minutes of the YLWD-City of Placentia Joint Agency Committee Meeting Held October 29, 2019 at 3:30 p.m.4 YLWD staff noted that bottled water is regulated by the FDA and not the EPA. EPA’s standards are more stringent than FDA’s standards for water quality, and bottled water is not required to be tested for PFOA and PFOS. 4.8.Update on Connecting Septic System Properties to Municipal Sewer Utility YLWD has hired a firm to assess this matter and will provide an update at the next scheduled meeting. 4.9.Future Meeting Date and Agenda Items The next meeting is scheduled January 15, 2020 at 3:00 p.m. at YLWD. 5.ADJOURNMENT The meeting was adjourned at 4:50 p.m. DA Page 60 of 62 ITEM NO. 12.1. AGENDA REPORT MEETING DATE:November 26, 2019 TO:Board of Directors FROM:Marc Marcantonio, General Manager STAFF CONTACTS:Annie Alexander, Executive Assistant/Board Secretary SUBJECT:Meetings from December 1, 2019 - January 31, 2020 ATTACHMENTS: 1.Board of Directors' Activities Calendar Page 61 of 62 Board of Directors Activity Calendar Event Date Time Attendance By December ACWA-JPIA Fall Conference Mon, Dec 2 8:00 AM Jones ISDOC Executive Committee Tue, Dec 3 7:30 AM Nederhood ACWA-JPIA Fall Conference Tue, Dec 3 8:00 AM Jones ACWA Fall Conference Tue, Dec 3 8:00 AM Jones ACWA Groundwater Committee Tue, Dec 3 10:00 AM Jones ACWA Energy Committee Tue, Dec 3 1:00 PM Miller ACWA Water Quality Committee Tue, Dec 3 3:00 PM Miller YL City Council Tue, Dec 3 6:30 PM Hall ACWA Fall Conference Wed, Dec 4 8:00 AM Jones MWDOC Board Wed, Dec 4 8:30 AM Nederhood OCWD Board Wed, Dec 4 5:30 PM ACWA Fall Conference Thu, Dec 5 8:00 AM Jones ACWA Fall Conference Fri, Dec 6 8:00 AM Jones Board of Directors Regular Meeting Tue, Dec 10 6:30 PM CRWUA Annual Conference Wed, Dec 11 8:00 AM Nederhood OC LAFCO Wed, Dec 11 8:15 AM Nederhood (As Needed) YL Planning Commission Wed, Dec 11 6:30 PM Hawkins (As Needed) CRWUA Annual Conference Thu, Dec 12 8:00 AM Nederhood WACO Fri, Dec 13 7:30 AM CRWUA Annual Conference Fri, Dec 13 8:00 AM Nederhood Joint Committee with City of Yorba Linda Mon, Dec 16 3:00 PM Jones/Hawkins WACO Planning Committee Tue, Dec 17 7:30 AM Jones/Nederhood SAWPA Commission Tue, Dec 17 9:30 AM Jones (As Needed) YL City Council Tue, Dec 17 6:30 PM Miller TENTATIVE - Board of Directors Workshop Meeting Tue, Dec 17 6:30 PM MWDOC Board Wed, Dec 18 8:30 AM Nederhood OCWA Luncheon Wed, Dec 18 11:30 AM OCWD Board Wed, Dec 18 5:30 PM Jones OCSD Board Wed, Dec 18 6:00 PM Hawkins District Offices Closed Tue, Dec 24 7:00 AM Disrict Offices Closed Wed, Dec 25 7:00 AM January District Offices Closed Wed, Jan 1 7:00 AM MWDOC Board Wed, Jan 1 8:30 AM Nederhood OCWD Board Wed, Jan 1 5:30 PM Jones WACO Fri, Jan 3 7:30 AM ISDOC Executive Committee Tue, Jan 7 7:30 AM Nederhood SAWPA Commission Tue, Jan 7 9:30 AM Jones (As Needed) YL City Council Tue, Jan 7 6:30 PM Nederhood OC LAFCO Wed, Jan 8 8:15 AM Nederhood (As Needed) Board of Directors Regular Meeting Tue, Jan 14 6:30 PM MWDOC Board Wed, Jan 15 8:30 AM Nederhood OCWA Luncheon Wed, Jan 15 11:30 AM Joint Committee Meeting with City of Placentia Wed, Jan 15 3:00 PM Jones/Hawkins OCWD Board Wed, Jan 15 5:30 PM Jones YL Planning Commission Wed, Jan 15 6:30 PM Hawkins (As Needed) WACO Planning Committee Tue, Jan 21 7:30 AM Jones/Nederhood SAWPA Commission Tue, Jan 21 9:30 AM Jones (As Needed) YL City Council Tue, Jan 21 6:30 PM MWDOC/OCWD Joint Planning Committee Wed, Jan 22 8:30 AM Jones/Nederhood OCSD Board Wed, Jan 22 6:00 PM Hawkins Interagency Committee Meeting with MWDOC and OCWD Thu, Jan 23 4:00 PM Jones/Hawkins Board of Directors Regular Meeting Tue, Jan 28 6:30 PM YL Planning Commission Wed, Jan 29 6:30 PM Hawkins (As Needed) ISDOC Thu, Jan 30 11:30 AM As of November 18, 2019 Page 62 of 62 BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING ITEM NO. 9.1. Yorba Linda Water District Proposed PFAS Treatment Plant and Pilot Test 11/26/2019 Presented by: Rosanne Weston Engineering Manager A. ,� ;V ► � �Qrba dind-&qN fr MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: November 26, 2019 ITEM NO. 9.1. PFOA PFOS Treatment Plant Schedule JIlIL 19 Month Schedule 2.5 months 4.5 months 12 months Design, Permitting Prepare and Construction of RFP, Execute PFAS Treatment Evaluate Owner's Plant Owner's Rep State to Prepare RFQ/RFP, Rep Proposals Contract Lower Advertise Early Purchase Plant p Response and Awardof Vessels and Commissioning, (In progress) Levels Design-Build Contract Media Startup and Staff YLWD/OCWD Jan. 2020 Training Conduct Reimbursement YLWD/OCWD Approach ; Staff to obtain Pilot Test Reimbursement (In progress) Approved by Treatment OCWD BOD MOU & Plant 11/20/2019 ( ) Agreement Certification —17�ba f-lhid.�W;;�D 2 ;, MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: November 26, 2019 Proposed PFAS Treatment Plant 12 -' i r NA a SAll ARES r�r, 4 41 I , tsy �. . a• •'+C 18 - 19 ,' 1 � •� /f fir+ �� n" l .^iii•. � � � +.* '! /� './. ;� � �'�'� �_. .�.. � ,`,.- - . �� - � I y !J�I � �'N ��•/ �� �:y.4 Yom, 10 OL iL HQ Offsite Wells Alt ❑ O n .. _ t I' ❑:,- _ - „,.. 0_ ,.,l 15 II D V) 1 (p T I _ 'La Palmae_ ; M. . -- 14 fmom + - � 21 'ter22 J Future - �.. 1 H kleberry Basin �- Conrock Basin 7. Warner Basin ! 23* o *, 20 Future �t-e 11 ,,�a ♦. x 1 ,�- . •` ca haw!� ♦� - 5aF ITEM NO. 9.1. A-- _ PFAS Pilot Test at Well #21 log t � I r rr�rrrrr goo ilk ... � J' ' �1l+llrrr•i 1 4� � 1 ! r 1 r , + rf ! , ! ! ! ! 'barba Cnck�lV •�+ —A f.�+ MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: November 26, 2019 ITEM NO. 9.1. AdMobf a f ,Q 0 ao Qi f I a I s 1.[Qa p�0 I _ r f II.'11 V - 1 If 1 f I 1! f I '. rfl Setup 11/21/19 11/22/2019 11/25/2019 Front to Back - LC4 Resin lead & lag and Calgon F-400 GAC lead & lag Yorba Linda Water District 6 MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: November 26, 2019 ITEM NO. 9.1. .low 11 ,rryll �-- 44411f1 ..� - ','4' 4 7 1 1 4 6 � '' 'i 6 11611 i ado 1 a 8 ILr F Setup 11/21/19 11/22/2019 11/25/2019 Back to Front - Purolite Resin lead & lag and PSR2+ Resin lead & lag Yorba Linda Water District 7 MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: November 26, 2019 A HQ, Offsite Wells .4._T- Ab rD wm - - 15 ALL : ° � VV � � n �,moi-,3�+-i•— � �► _- - T _ _ La Pal-ma t�, . . - ."T x� • : • • Ave- Ras A`-,.;1 �, - �l v �:+ .l.= m -'� _ • : • • 21 ` 22* 1 • • • "1 so: 11- Future Huckleberry Basin f ` Conrock �Ir r �,' f c? I � • • • i� Basin _`- Warner • . . ,� - _'� Basin • • • �,v, a t 23* 20 1 Future �\ • • • 2\. y Ed "�- ITEM NO. 9.1. Well 12 -_ Well 7 - 1949 .;< � {�-= "� 1950 t ` 1,110 gpm i I A' 1,330 gpm ' - - PFOA=19.2 PFOA=23.3 Well 1 - Fe=<14 - -.�,� f .-�� Mn= <0.8 - Mn= 0.94 1950 1,600 gpm F�, awlAs= 4.2 `�� As= 3.6 PFOA=19.1 Fe=18 Well 18 9ie Mn- <0.8 2002 Well 19 As= 4.1 2,340 gpm 2004 - Well 5 +� PFOA=19.8 1,650 gpm PFOA=21.1 - - 1950 Fe=<14 - Mn= 2.9 1,840 gpm `, s Fe=<14 PFOA=21.6 � As= 2.1 Mn= 0.99 Fe=<14COME As= 2.4 `1. Mn= 1.6 - As= 4.0 Well 10 - - 1929 -� y 1,530 gpm - PFOA=23 - Fe=<141 Mn= 0.97 ' p ' Offsite As= 3.7 v. �. 'I � _ Wells - MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: November 26, 2019 _ • w� v 12 LCA Q 18 6 1 4 ri a L� p. NP Im r• TEll 0 ML 110 r• _ _� Miral - ITEM NO. 9.1. AMNO- _ Pu rrolite P FA694 E Ap p ro imated Pe rfo r a nce at YLWD Well 21 Pilot CL 1-D _. CL c 9 _. 0 M 6 _.. 4 0 n- 10 E* A0 -56 Weeks 5 P crt 1(0% Port JAM MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: November 26, 2019 ITEM NO. 9.1. 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P-3 �0 00— z spz- 40 60 .5 Ss 20 PSR2+ PSR2+ LAG LEAD EFFLUENT - - ....; ROLITE EFFLUENT 7 1 MATERIALS SUBMITTED BY: J. Wayne Miller, PhD MEETING DATE: November 26, 2019