HomeMy WebLinkAbout2020-01-28 - Board of Directors Meeting Agenda Packet (B)AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, January 28, 2020, 6:30 PM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
Phil Hawkins, President
Andrew J. Hall, Vice President
Brooke Jones, 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. Presentation of Special District Leadership Foundation's District of Distinction
Accreditation Renewal and District Transparency Certificate of Excellence
Renewal
5.2. Elected Official Liaison Reports
5.3. 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.Minutes of the Board of Directors Special and Regular Meetings Held January
14, 2020
Recommendation: That the Board of Directors approve the minutes as
presented.
Page 1 of 47
7.2.Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $4,969,513.18.
7.3.Budget to Actual Reports for the Month Ending December 31, 2019
Recommendation: That the Board of Directors receive and file the Budget to
Actual Reports for the Month Ending December 31, 2019.
7.4.Cash and Investment Report for Period Ending December 31, 2019
Recommendation: That the Board of Directors receive and file the Cash and
Investment Report for Period Ending December 31, 2019.
7.5.Purchase of 2021 Dump Truck
Recommendation: That the Board of Directors authorize the General Manager
to purchase a 2021 Dump Truck from Inland Kenworth Montebello in the
amount of $206,685.24.
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.Reimbursement of Costs Incurred Before Issuance of TaxExempt Obligations
for Funding of District's Capital Improvement Program
Recommendation: That the Board of Directors: (1) direct staff to issue a
Request for Proposal to pursue a Line of Credit; and (2) adopt Resolution No.
2020XX Regarding Intention to Issue TaxExempt Obligations for the purpose
of permitting the reimbursement of nottoexceed $20,000,000 for incurred
costs related to the current capital improvement program which are incurred
before the issuance of taxexempt obligations, and rescind Resolution No. 18
25.
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
Page 2 of 47
11. COMMITTEE REPORTS
11.1. Interagency Committee with MWDOC and OCWD
(Hawkins/Nederhood)
Meeting scheduled Thursday, January 23, 2020 at 4:00 p.m. was
cancelled.
Next meeting is scheduled Thursday, March 26, 2020 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Hawkins/Jones)
Next meeting is yet to be scheduled.
11.3. Joint Agency Committee with City of Placentia
(Hawkins/Hall)
Minutes of the meeting held Wednesday, January 15, 2020 at 3:00 p.m.
will be provided when available.
Next meeting is scheduled Wednesday, April 29, 2020 at 3:00 p.m. at
YLWD.
12. BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1. Meetings from January 29 March 31, 2020
13. ADJOURNMENT
13.1. The next Regular Board Meeting will be held Tuesday, February 11, 2020.
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 47
ITEM NO. 7.1.
AGENDA REPORT
MEETING DATE:January 28, 2020
TO:Board of Directors
FROM:Marc Marcantonio, General Manager
STAFF CONTACTS:Annie Alexander, Executive Assistant/Board Secretary
SUBJECT:Minutes of the Board of Directors Special and Regular Meetings
Held January 14, 2020
RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
1.Draft Meeting Minutes (Special)
2.Draft Meeting Minutes (Regular)
Page 4 of 47
Minutes of the YLWD Board of Directors Special Meeting Held January 14, 2020 at 5:30 p.m.1
2020-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Tuesday, January 14, 2020, 5:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1.CALL TO ORDER
The meeting was called to order at 5:30 p.m.
2.ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Phil Hawkins, President Marc Marcantonio, General Manager
Andrew J. Hall, Vice President Brett Barbre, Assistant General Manager
Brooke Jones John DeCriscio, Operations Manager
J. Wayne Miller, PhD Annie Alexander, Executive Asst/Board Secretary
Al Nederhood
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
3.PUBLIC COMMENTS
Jonathan Conk, Vice President of Project Dimensions, commented on issues
related to the provision of sewer service to the Lakeview Senior Living
development project. He requested the Board consider allowing the City of
Placentia to provide sewer service to the project by way of a cooperative
agreement with the District. He also requested that if this was not possible, the
Board authorize District staff to meet with him to discuss the matter.
4.CLOSED SESSION
The Board entered Closed Session at 5:38 p.m. All Directors were present.
Also present was General Manager Marcantonio, Assistant General
Manager Barbre, Operations Manager DeCriscio, and General Counsel Gagen.
4.1 Conference with Legal Counsel – Anticipated Litigation
Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision
(d) of Section 54936.9 of the California Government Code
Number of Potential Cases:One
Page 5 of 47
Minutes of the YLWD Board of Directors Special Meeting Held January 14, 2020 at 5:30 p.m.2
2020-XXX
Operations Manager DeCriscio left the Closed Session following discussion of
Item No. 4.1.
4.2.Public Employment
Pursuant to Section 54957 of the California Government Code
Title:General Manager
General Manager Marcantonio and Assistant General Manager Barbre left the
Closed Session at 5:53 p.m.
The Board reconvened in Open Session at 6:27 p.m. General Counsel Gagen
stated that the Board had not taken any reportable action during Closed Session.
President Hawkins announced that the District would be providing a presentation
during the next YLWD/City of Placentia Joint Agency Committee Meeting on
January 15, 2020 regarding a financial obligation owed to the District. The
presentation will include a discussion regarding the provision of sewer service to
the Lakeview Senior Living development project.
5.ADJOURNMENT
5.1.The meeting was adjourned at 6:27 p.m.
Annie Alexander
Board Secretary
Page 6 of 47
Minutes of the YLWD Board of Directors Regular Meeting Held November January 14, 2020 at 6:30 p.m.1
2020-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, January 14, 2020, 6:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1.CALL TO ORDER
The meeting was called to order at 6:30 p.m.
2.PLEDGE OF ALLEGIANCE
3.ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Phil Hawkins, President Marc Marcantonio, General Manager
Andrew J. Hall, Vice President Brett Barbre, Assistant General Manager
Brooke Jones John DeCriscio, Operations Manager
J. Wayne Miller, PhD Gina Knight, Human Resources and Risk Manager
Al Nederhood Delia Lugo, Finance Manager
Pasquale Talarico, Director of Public Affairs
Rosanne Weston, Engineering Manager
Annie Alexander, Executive Asst/Board Secretary
Kaden Young, Sr Management Analyst
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
4.ADDITIONS/DELETIONS TO THE AGENDA
None.
5.INTRODUCTIONS AND PRESENTATIONS
5.1.Elected Official Liaison Reports
None.
5.2.Federal and State Legislative Update
Staff reported on the status of proposed legislation and public relations
activities.
Page 7 of 47
Minutes of the YLWD Board of Directors Regular Meeting Held November January 14, 2020 at 6:30 p.m.2
2020-XXX
6.PUBLIC COMMENTS
None.
7.CONSENT CALENDAR
Director Nederhood requested to remove Item No. 7.2. from the Consent
Calendar for separate action.
Director Hall made a motion, seconded by Director Nederhood, to approve the
remainder of the Consent Calendar. Motion carried 5-0-0-0.
7.1.Minutes of the Board of Directors Special and Regular Meetings Held
November 12, 2019
Recommendation: That the Board of Directors approve the minutes as
presented.
7.3.Minutes of the Board of Directors Special and Regular Meetings Held
December 10, 2019
Recommendation: That the Board of Directors approve the minutes as
presented.
7.4.Payments of Bills, Refunds, and Wire Transfers as of December 24, 2019
and January 14, 2020
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $2,443,965.02.
7.5.Budget to Actual Reports for the Month Ending November 30, 2019
Recommendation: That the Board of Directors receive and file the Budget
to Actual Reports for the Month Ending November 30, 2019.
7.6.Cash and Investment Report for the Period Ending November 30, 2019
Recommendation: That the Board of Directors receive and file the Cash
and Investment Report for Period Ending November 30, 2019.
7.7 Professional Services Agreements for On-Call Engineering Services
Recommendation: That the Board of Directors authorize the General
Manager to executive five (5) non-exclusive Professional Services
Agreements (pending review and approval as to form by General Counsel)
Page 8 of 47
Minutes of the YLWD Board of Directors Regular Meeting Held November January 14, 2020 at 6:30 p.m.3
2020-XXX
for On-Call Professional Engineering Services with Krieger & Stewart, Inc.,
Carollo Engineers, Inc., Tetra Tech, Psomas and AECOM for an initial
period of three (3) years and cumulative total not to exceed $1,500,000.
ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION
7.2.Minutes of the Board of Directors Special and Regular Meetings Held
November 26, 2019
Director Nederhood requested the minutes for Item No. 7.2. of the regular
meeting be amended to indicate that the Board consider “revising” the
District’s investment strategy rather than “adopting a more conservative”
one.
Director Nederhood made a motion, seconded by Director Jones, to
approve the minutes as amended. Motion carried 5-0-0-0.
8.ACTION CALENDAR
8.1.Board of Directors’ Committee, Agency, and Intergovernmental Meeting
Assignments
Director Nederhood made a motion, seconded by Director Jones, to
approve the proposed committee, agency, and intergovernmental meeting
assignments for the 2020 calendar year. Motion carried 5-0-0-0.
8.2.Board of Directors’ Compensation
Director Nederhood made a motion, seconded by Director Miller, to keep
the Directors’ compensation rate the same for the 2020 calendar year.
Motion carried 5-0-0-0.
9.DISCUSSION ITEMS
9.1.Treatment of Groundwater Supplies to Remove Per- and Polyfluoroalkyl
Substances (PFAS)
Staff briefed the Board on the status of various projects related to pilot
testing and construction of water treatments plants for the removal of
PFAS. Staff noted that the District’s municipal advisors would be
presenting funding options at the next regular Board meeting.
Page 9 of 47
Minutes of the YLWD Board of Directors Regular Meeting Held November January 14, 2020 at 6:30 p.m.4
2020-XXX
9.2.Status of Operations Activities
Staff reported on the District’s budgeted versus actual and projected water
production for FY20.
INTRODUCTIONS AND PRESENTATIONS CONTINUED
5.1.Elected Official Liaison Reports
Mayor Pro Tem Gene Hernandez reported that he was recently assigned
as the City of Yorba Linda’s liaison to the District for 2020.
10.REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1.Directors' Reports
The Directors noted their attendance at the listed meetings and events.
10.2.General Manager's Report
General Manager Marcantonio asked each of the managers to report on
activities within their respective departments.
10.3.General Counsel’s Report
None.
10.4.Future Agenda Items and Staff Tasks
Director Nederhood inquired regarding the status of a few items he had
previously requested from staff.
11.COMMITTEE REPORTS
11.1.Interagency Committee with MWDOC and OCWD
Minutes of the meeting held Monday, November 25, 2019 at 4:00
p.m. were included in the agenda packet.
Next meeting is scheduled Thursday, January 23, 2020 at 4:00
p.m. (This meeting was subsequently cancelled.)
Page 10 of 47
Minutes of the YLWD Board of Directors Regular Meeting Held November January 14, 2020 at 6:30 p.m.5
2020-XXX
11.2.Joint Agency Committee with City of Yorba Linda
Minutes of the meeting held Monday, December 16, 2019 at 3:00
p.m. were included in the agenda packet.
Next meeting is yet to be scheduled.
11.3.Joint Agency Committee with City of Placentia
(Jones/Hawkins)
Next meeting is scheduled Wednesday, January 15, 2020 at 3:00
p.m.
12.BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1.Meetings from January 15 – February 29, 2020
The Board made no changes to the activity calendar.
13.ADJOURNMENT
13.1.The meeting was adjourned at __:__ p.m.
Annie Alexander
Board Secretary
Page 11 of 47
ITEM NO. 7.2.
AGENDA REPORT
MEETING DATE:January 28, 2020
TO:Board of Directors
FROM:Marc Marcantonio, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
Paige Appel, Accounting Assistant II
SUBJECT:Payments of Bills, Refunds, and Wire Transfers
RECOMMENDATION:
That the Board of Directors ratify and authorize disbursements in the amount of
$4,969,513.18.
SUMMARY:
Section 31302 of the California Water Code says the District shall pay demands made against
it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby
submitting the list of disbursements for Board of Directors’ approval.
DISCUSSION:
The items on this disbursement list include: a wire of $27,063.57 to So. California Gas Co. for
December gas charges at multiple locations; a wire of $335,650.25 to MWDOC for December
water purchases; a wire of $587.88 to Switch for the remote data hosting co-location; a wire of
$54,798.05 to So. California Edison for December electricity charges at multiple locations; a
check of $82,621.10 to Aqua Metric for operations work material; a check of $3,974,611.25 to
OCWD – Pump Tax Replenishment Assessment for July 2019 – December 2019. The
balance of $195,642.98 are routine invoices.
The Accounts Payable check register total is $4,670,975.08 and Payroll No. 1 total is
$298,538.10; where total disbursements for this agenda report is $4,969,513.18. A summary
of the disbursements is attached.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors approves bills, refunds and wire transfers semi-monthly.
Page 12 of 47
ATTACHMENTS:
1.Cap Sheet
2.Check Register
3.Credit Card
Page 13 of 47
Summary of Disbursements
January 28, 2020
CHECK NUMBERS & WIRES:
01/28/2020 Computer Checks 75473—75576 $ 4,252,875.33
____________
$ 4,252,875.33
WIRES:
W01092020 So. California Gas Co. $ 27,063.57
W01132020 Municipal Water District $ 335,650.25
W01132020B Switch Ltd. $ 587.88
W011320A So. California Edison $ 54,798.05
____________
$ 418,099.75
TOTAL OF CHECKS & WIRES $ 4,670,975.08
PAYROLL NO. 1:
Direct Deposits $ 184,969.57
Third Party Checks 7309—7313 $ 22,160.53
Payroll Taxes $ 47,414.71
EFT – CalPERS Payroll #1 $ 43,993.29
$ 298,538.10
TOTAL OF PAYROLLS $298,538.10
----------------------------------------------------------------------------------------------------------------------
DISBURSEMENT TOTAL: $4,969,513.18
==================================================================
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF January 28, 2020
==================================================================.
Page 14 of 47
Check No.Date Vendor Name Amount Description
75473 01/28/2020 A-1 Fence 3,286.00 CHAIN LINK FENCE FOR SANTIAGO RESERVOIR
75474 01/28/2020 America's Instant Signs 258.60 WAREHOUSE SIGNS
75475 01/28/2020 Aqua-Metric Sales Co. 82,621.10 OPERATIONS WORK MATERIAL
75476 01/28/2020 Aramark 794.22 UNIFORM SERVICES
75477 01/28/2020 AT & T - Calnet3 1,545.92 ATT CALNET 3
75478 01/28/2020 BrightView Tree Care Services Inc. 4,135.11 MONTHLY LANDSCAPE WORK
75479 01/28/2020 Brooke Jones 121.16 MIELAGE REIMBURSE EXPENSE
75480 01/28/2020 City Of Placentia 300.00 ALARM PERMIT 2019
75481 01/28/2020 Coastline Equipment 658.84 PARTS FOR UNIT# 174, 145
75482 01/28/2020 Culligan of Santa Ana 2,600.60 WATER SOFTENER SERVICE
75483 01/28/2020 Daniels Tire Service 67.00 TIRE DISPOSAL FEE
75484 01/28/2020 Danielle Logsdon 157.56 TRAVEL EXPENSE- CITYWORKS CONFERENCE
75485 01/28/2020 E. H. Wachs Company 547.33 HARDWARE SUPPLIES
75486 01/28/2020 Enkay Engineering & Equipment Inc 900.00 TRANSITE PIPE DISPOSAL
75487 01/28/2020 Enthalpy Analytical, Inc. 1,975.00 WATER QUALITY LAB WORK
75488 01/28/2020 ESRI 25,000.00 GIS ANNUAL SUBSCRIPTION 1/2020-1/2021
75489 01/28/2020 Factory Motor Parts 52.39 MECH SHOP SUPPLIES & VEHICLE MAINTENANCE
75490 01/28/2020 Fairway Ford Sales, Inc. 62.07 VEHICLE SUPPLIES
75491 01/28/2020 Fleet Services, Inc 228.75 SMOKE TEST UNIT#168, 197, 196
75492 01/28/2020 Grainger 278.18 SAFETY & SHOP SUPPLIES
75493 01/28/2020 Graybar Electric Co 397.01 SCADA PART
75494 01/28/2020 Haaker Equipment Co. 314.64 VEHICLE MAINTENANCE UNIT# 210
75495 01/28/2020 Harrington Industrial 106.80 SUPPLIES FOR FIRE HARDENING
75496 01/28/2020 Infosend Inc. 20,174.54 BILLING & POSTAGE CUSTOMER BILL - NOVEMBER & DECEMBER 2019
75497 01/28/2020 Jackson's Auto Supply - Napa 34.67 PARTS FOR UNIT #206
75498 01/28/2020 Jeremy Smith 70.00 CERTIFICATION - SAFETY CONSTRUCTION
75499 01/28/2020 Jesse Diaz 188.00 C1 CERTIFICATION REIMBURSEMENT
75500 01/28/2020 Kidman Gagen Law 2,695.00 LEGAL SERVICES
75501 01/28/2020 Liebert Cassidy Whitmore 4,740.50 LEGAL SERVICES & ERC MEMBERSHIP
75502 01/28/2020 Mc Fadden-Dale Hardware 31.62 PRODUCTION REPAIR PARTS
75503 01/28/2020 Mc Master-Carr Supply Co. 1,077.66 PRODUCTION SUPPLIES & PARTS
75504 01/28/2020 MCR Technologies Inc. 1,039.44 PRODUCTION SERVICE WORK & PARTS
75505 01/28/2020 NatPay Online Business Solutions 39.10 DOCULIVERY - OCTOBER 2019
75506 01/28/2020 New Pig Corporation 737.07 MECHANIC SHOP SUPPLIES
75507 01/28/2020 Nickey Kard Lock Inc 8,636.30 FUEL - 12/1-12/31
75508 01/28/2020 Office Solutions 1,585.57 OFFICE SUPPLIES
75509 01/28/2020 Praxair Distribution 217.60 WELDING SUPPLIES
75510 01/28/2020 P.T.I. Sand & Gravel, Inc. 661.85 FIRE HARDENING MATERIAL
75511 01/28/2020 RMJ Technologies 252.15 GTB MONTHLY SERVICE
75512 01/28/2020 Robyn Hollinshead 27.38 TRAVEL EXPENSE- CITYWORKS CONFERENCE
75513 01/28/2020 R & S Overhead Doors of So-Cal, Inc 2,186.25 ROLL-UP DOOR REPAIR FOR MECHANICS WAREHOUSE
75514 01/28/2020 Sanders Paving, Inc. 23,589.50 CONCRETE & PAVING REPAIRS, WORK AND SUPPLIES
75515 01/28/2020 Smog Tech 675.00 VEHICLE MAINTENANCE
75516 01/28/2020 Staples Business Advantage 54.54 OFFICE SUPPLIES
75517 01/28/2020 Underground Service Alert 374.43 NEW TICKET CHARGES & CA STATE FEE
75518 01/28/2020 United Industries 845.67 SAFETY EQUIPMENT
75519 01/28/2020 U.S. ENERGY RECOVERY LLC 8,407.72 OUTSIDE LED LIGHTS
75520 01/28/2020 United Water Works, Inc. 213.29 WATER SERVICE PARTS
75521 01/28/2020 Wayne Miller 928.22 TRAVEL EXPENSE- ACWA CONFERENCE
75522 01/28/2020 YO Fire 3,002.18 OPERATIONS WORK MATERIAL
75523 01/28/2020 CalCard US Bank 16,529.33 CREDIT CARD TRANSACTIONS - JANUARY 2020
75524 01/28/2020 Cogsdale Services Corporation 3,937.50 MICROSOFT GP & CSM UPGRADE
75525 01/28/2020 United Water Works, Inc. 957.58 OPERATIONS WORK MATERIAL
75526 01/28/2020 BrightView Tree Care Services Inc. 2,875.00 LANDSCAPE SERVICE
75527 01/28/2020 Clinical Lab. Of San Bern. 1,345.00 WATER QUALITY LAB WORK
75528 01/28/2020 Elite Equipment Inc 1,168.45 EQUIPMENT MAINTENANCE #E-169
75529 01/28/2020 Factory Motor Parts 368.03 VEHICLE MAINTENANCE UNIT# 107
75530 01/28/2020 Fleet Services, Inc 533.65 REPAIR OF UNIT# 197
75531 01/28/2020 Fullerton Paint & Flooring 258.09 MARKING PAINT & PAINT SUPPLIES
For Checks Dated: 01/15/2019 thru 01/28/2020
Yorba Linda Water District
Check Register
Page 15 of 47
75532 01/28/2020 Mc Crometer Inc 2,537.90 FLOW METER - PRODUCTION
75533 01/28/2020 Michael Payne Consulting 2,124.36 CONSULTING SERVICE OPERATIONS
75534 01/28/2020 Office Solutions 87.61 OFFICE SUPPLIES
75535 01/28/2020 United Water Works, Inc. 4,026.36 OPERATIONS WORK MATERIAL
75536 01/28/2020 Harrington Industrial 194.89 FIRE HARDENING
75537 01/28/2020 Hushmand Associates Inc 2,302.00 J19-37 GEOTECH LAB & OBSERVATION TESTING
75538 01/28/2020 Tetra Tech, Inc. 9,645.00 J2018-27 HIDDEN HILLS PUMP IMPLEMENTATION PLAN REVIEW
75539 01/28/2020 Alfredo Vargas 202.09 SAFETY FOOTWEAR
75540 01/28/2020 AT & T - Calnet3 237.54 ATT-CALNET 3
75541 01/28/2020 CivicPlus 3,600.00 ANNUAL HOSTING & SUPPORT SERVICES
75542 01/28/2020 Gladwell Governmental Services Inc. 250.00 RECORDS RETENTION LEGAL REVIEW
75543 01/28/2020 Hydrex Pest Control 193.00 PEST CONTROL
75544 01/28/2020 Irma Munguia 265.73 EDUCATION REIMBERSEMENT
75545 01/28/2020 Managed Health Network 171.00 EAP - JANUARY 2020
75546 01/28/2020 Marc Marcantonio 19.31 MIELAGE REIMBURSEMENT
75547 01/28/2020 Mc Fadden-Dale Hardware 73.04 PRODUCTION REPAIR PARTS
75548 01/28/2020 Municipal Water District 9,372.00 WATER LOSS CONTROL SERVICES
75549 01/28/2020 Orange County Water District 3,974,611.25 REPLENISH ASSESSMENT JULY-DECEMBER 2019
75550 01/28/2020 RMJ Technologies 192.87 GTB GO DEVICE-UNIT# 227
75551 01/28/2020 Shred Confidential, Inc. 63.00 SHRED SERVICE
75552 01/28/2020 Sunrise Medical Group 210.00 EMPLOYEE MEDICAL EXPENSE
75553 01/28/2020 PAULA LANHAM 66.36 CUSTOMER REFUND
75554 01/28/2020 SUE HODGE 108.79 CUSTOMER REFUND
75555 01/28/2020 LYDIA CHUN 49.72 CUSTOMER REFUND
75556 01/28/2020 UNICORN RENTAL PROP MGMT 398.45 CUSTOMER REFUND
75557 01/28/2020 ERICA COOPER 58.54 CUSTOMER REFUND
75558 01/28/2020 JOHN S MEEK CO 490.26 CUSTOMER REFUND
75559 01/28/2020 HORIZON OXYGEN & MEDICAL EQUIPMENT 121.93 CUSTOMER REFUND
75560 01/28/2020 JIANWEI CHEN 40.24 CUSTOMER REFUND
75561 01/28/2020 ZACHERY QUINTANA 56.73 CUSTOMER REFUND
75562 01/28/2020 LI WANG 91.19 CUSTOMER REFUND
75563 01/28/2020 MICHAEL ARIAS 71.67 CUSTOMER REFUND
75564 01/28/2020 SHERRI KLEIN 182.29 CUSTOMER REFUND
75565 01/28/2020 VICTOR DE LA ROSA 53.86 CUSTOMER REFUND
75566 01/28/2020 BRILLIANT CORNERS 259.72 CUSTOMER REFUND
75567 01/28/2020 BRECKENRIDGE PROPERTY FUND 2016, LLC 201.88 CUSTOMER REFUND
75568 01/28/2020 JOSEPH RAJABI DDS, INC. 434.63 CUSTOMER REFUND
75569 01/28/2020 TROJAN CAPITAL INVEST LLC 184.94 CUSTOMER REFUND
75570 01/28/2020 PEGGY MIZENER 117.51 CUSTOMER REFUND
75571 01/28/2020 AMALIA BANTIGUE 73.89 CUSTOMER REFUND
75572 01/28/2020 A.M. ORTEGA 1,433.60 CUSTOMER REFUND
75573 01/28/2020 DESKAMON INC 307.46 CUSTOMER REFUND
75574 01/28/2020 OPEN DOOR LABS INC 424.61 CUSTOMER REFUND
75575 01/28/2020 OC PRO PROPERTY MANAGEMENT 383.46 CUSTOMER REFUND
75576 01/28/2020 ZHENNA SHANG 18.49 CUSTOMER REFUND
W01132020 01/13/2020 Municipal Water District 335,650.25 WATER DELIVERIES - NOVEMBER 2019
W01132020B 01/13/2020 Switch Ltd 587.88 REMOTE DATA HOSTING CO-LOCATION
W011320A 01/13/2020 Southern Calif Edison Co. 54,798.05 ELECTRICITY CHARGES - DECEMBER 2019 - VARIOUS LOCATIONS
W01092020 01/09/2020 Southern Calif Gas Co. 27,063.57 GAS CHARGES - DECEMBER 2019 - VARIOUS LOCATIONS
4,670,975.08
1/9/2020 PAYROLL #1 - EMPLOYEE DIRECT DEPOSIT 184,969.57
1/9/2020 PAYROLL #1 - PAYROLL TAX PAYMENT 47,414.71
1/9/2020 PAYROLL #1 - CALPERS & TASC 43,993.29
7309 1/9/2020 COLONIAL LIFE 112.13
7310 1/9/2020 LINCOLN FINANCIAL GROUP 6,126.27
7311 1/9/2020 NATIONWIDE RETIREMENT SOLUTIONS 15,170.29
7312 1/9/2020 CALIFORNIA STATE DISBURSEMENT UNIT 366.92
7313 1/9/2020 CALIFORNIA STATE DISBURSEMENT UNIT 384.92
298,538.10
Payroll Checks #1
Page 16 of 47
Vendor Name Amount Description
CHRIS GREGORY CONCRETE PUMPING 300.00 J19-41 - CONCRETE PUMPING
Home Depot 16.74 MATERIAL FOR HELI HYDRANT
Jet Blue 206.60 TRAVEL EXPENSES - CITYWORKS CONFERENCE - HOLLINSHEAD, R
Home Depot 115.00 FIRE HARDENING MATERIAL FOR SANTIAGO RESERVOIR
Home Depot 107.37 MATERIAL FOR WELL 21
Home Depot 111.69 MATERIAL FOR HELI HYDRANT
FRONTRUNNER TRANSIT LINE 2.50 TRAVEL EXPENSES - CITYWORKS CONFERENCE - HOLLINSHEAD, R
BAR GEORGE 36.10 TRAVEL EXPENSES - CITYWORKS CONFERENCE - HOLLINSHEAD, R
FRONTRUNNER TRANSIT LINE 2.50 TRAVEL EXPENSES - CITYWORKS CONFERENCE - HOLLINSHEAD, R
GARDEN RESTAURANT 28.93 TRAVEL EXPENSES - CITYWORKS CONFERENCE - HOLLINSHEAD, R
Raddison Salt Lake 463.37 TRAVEL EXPENSES - CITYWORKS CONFERENCE - HOLLINSHEAD, R
BAR GEORGE 18.05 TRAVEL EXPENSES - CITYWORKS CONFERENCE - HOLLINSHEAD, R
Republic Services #676 581.96 DISPOSAL SERVICE
Republic Services #676 581.96 DISPOSAL SERVICE
Answer One Communications 1,889.00 VIRTUAL RECEPTIONIST SERVICE
Answer One Communications 489.50 VIRTUAL RECEPTIONIST SERVICE
ONLINE Information Services, Inc.983.85 ONLINE UTILITY EXCHANGE & COLLECTION - NOVEMBER 2019
Time Warner Cable 3,084.06 INTERNET & DISTRICT TV SERVICES
Verizon Wireless 7,510.15 VERIZON WIRELESS - 10/21/19-11/20 & 11/21-12/20
16,529.33
28-Jan-20
Cal Card Credit Card
U S Bank
Page 17 of 47
ITEM NO. 7.3.
AGENDA REPORT
MEETING DATE:January 28, 2020
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 the Month Ending December 31,
2019
RECOMMENDATION:
That the Board of Directors receive and file the Budget to Actual Reports for the Month Ending
December 31, 2019.
SUMMARY:
Presented are the Budget to Actual Reports for the Month Ending December 31, 2019 for the
District.
DISCUSSION:
For the month-ending December 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 December 31,
2019, reflects an average increase of 1.30% as compared to the prior year for the same
reporting period. Residential customer connections have the highest increase in consumption
sales of 3.33% as compared to reported results from the prior year.
Total Variable Costs results, as reported through the month ending December 31,
2019, reflect a 1.38% 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 3.57% below that of prior year.
STRATEGIC PLAN INITIATIVE:
G2 3B – Regularly assess net position and steps to meet strategic goals.
Page 18 of 47
ATTACHMENTS:
1.December 2019 Financial Reports & Graphs
Page 19 of 47
FY20 Annual
Budget
YTD Actuals thru
December 2019
YTD % of
Budget
Water Revenue (Residential)16,548,758$ 9,247,609$ 55.88%
Water Revenue (Commercial & Fire Det.)1,872,073 951,934 50.85%
Water Revenue (Landscape/Irrigation)3,917,982 2,396,747 61.17%
Service Charges 10,988,263 5,439,055 49.50%
Other Operating Revenue 902,996 513,872 56.91%
Total Operating Revenue 34,230,072 18,549,217 54.19%
Revenue (Non-Operating):
Interest 698,777 251,994 36.06%
Property Taxes 1,820,471 993,808 54.59%
Other Non-Operating Revenue 608,430 382,459 62.86%
Total Non-Operating Revenue 3,127,678 1,628,261 52.06%
Total Revenue 37,357,750$ 20,177,478$ 54.01%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
Water-Related Costs 12,485,582$ 6,360,103$ 50.94%
Fixed Costs 1,179,009 770,392 65.34%
Power-Related Costs 1,446,219 978,706 67.67%
Variable Water Costs Related Expenses Total 15,110,810 8,109,201 53.66%
Salary Related Expenses 10,753,255 4,439,033 41.28%
Reduction for Capital Project Labor (225,000) (97,063) 43.14%
Salary Related Expenses Total 10,528,255 4,341,970 41.24%
Supplies & Services
Communications 228,183 109,495 47.99%
Contractual Services 496,717 193,925 39.04%
Data Processing 324,069 154,254 47.60%
Dues & Memberships 78,862 68,351 86.67%
Fees & Permits 290,271 168,485 58.04%
Insurance 304,468 140,253 46.06%
Materials 948,195 471,008 49.67%
District Activities, Emp Recognition 43,371 18,106 41.75%
Maintenance 565,165 263,730 46.66%
Non-Capital Equipment 170,778 88,840 52.02%
Office Expense 33,950 22,681 66.81%
Professional Services 585,971 328,875 56.12%
Training 78,301 11,138 14.22%
Travel & Conferences 126,278 35,127 27.82%
Uncollectible Accounts 4,185 3,223 77.02%
Utilities 179,258 111,802 62.37%
Vehicle Expenses 335,600 182,780 54.46%
Supplies & Services Sub-Total 4,793,620 2,372,073 49.48%
Total Operating Expenses 30,432,685 14,823,244 48.71%
Expenses (Non-Operating)
Other Expense 13,520 139,214 1029.69%
Total Non-Operating Expenses 13,520 139,214 1029.69%
Total Expenses 30,446,205$ 14,962,458$ 49.14%
Net Revenues 6,911,545 5,215,020 75.45%
Less: Debt Service (Principal & Interest)2,726,956 1,962,475 71.97%
Less: Committed Capital Expenditures (PayGo)3,204,425 284,468 8.88%
Less: PARS Contribution - Net Pension/OPEB 1,700,000 - 0.00%
Transfer to/(from) Reserves (719,836) 2,968,076 412.33%
Net Total -$ 0$
Yorba Linda Water District
Water Enterprise
FY20 ProForma - Use of Funds
December 2019
Page 20 of 47
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For Period Ending December 31, 2019
Annual YTD Dec YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual
Budget Budget Actual Actual (Under) Over Dec Actual Actual (thru vs vs
FY20 FY20 FY20 FY20 YTD Budget FY19 Dec 2019)PY Actual $PY Actual %
Revenue (Operating):
Water Revenue (Residential)16,548,758$ 9,257,375$ 1,011,679$ 9,247,609$ (9,766)$ 1,051,914$ 8,949,207$ 298,402$ 3.33%
Water Revenue (Commercial & Fire Det.)1,872,073 1,047,238 124,191 951,934 (95,304)121,407 999,632 (47,698)-4.77%
Water Revenue (Landscape/Irrigation)3,917,982 2,191,719 219,982 2,396,747 205,028 220,065 2,485,894 (89,147)-3.59%
Water Revenue (Service Charge)10,988,263 5,494,132 919,349 5,439,055 (55,077)837,458 5,014,339 424,716 8.47%
Sewer Charge Revenue 2,421,665 1,210,833 200,397 1,201,033 (9,800)184,367 1,118,586 82,447 7.37%
Locke Ranch Assessments 324,173 54,024 116,498 183,218 129,194 116,310 166,786 16,432 0.00%
Other Operating Revenue 964,708 492,354 84,685 573,016 80,662 64,986 602,082 (29,066)-4.83%
Total Operating Revenue:37,037,622 19,747,675 2,676,781 19,992,612 244,937 2,596,507 19,336,526 656,086 3.39%
Revenue (Non-Operating):
Interest 812,306 406,153 34,787 296,350 (109,803)45,445 322,483 (26,133)-8.10%
Property Tax 1,820,471 920,976 647,202 993,808 72,832 598,376 947,340 46,468 0.00%
Other Non-Operating Revenue 632,909 316,455 79,221 406,228 89,773 145,713 352,874 53,353 15.12%
Total Non-Operating Revenue:3,265,685 1,643,584 761,210 1,696,386 52,802 789,534 1,622,697 73,688 4.54%
Total Revenue 40,303,307 21,391,259 3,437,991 21,688,998 297,739 3,386,041 20,959,223 729,774 3.48%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)15,110,810 8,452,987 1,058,481 8,109,201 (343,786)1,020,619 8,222,838 (113,637)-1.38%
Salary Related Expenses 11,664,922 5,188,374 770,151 4,797,924 (390,450)763,033 4,756,456 41,468 0.87%
Supplies & Services 5,419,301 2,570,150 463,293 2,521,252 (48,898)304,853 2,072,339 448,913 21.66%
Total Operating Expenses 32,195,033 16,211,511 2,291,925 15,428,377 (783,134)2,088,505 15,051,633 376,744 2.50%
Expenses (Non-Operating):
Interest on Long Term Debt 1,303,967 651,984 107,685 653,941 1,957 111,601 681,008 (27,067) -3.97%
Other Expense 13,520 13,520 634 163,479 149,959 458 619 162,859 26293.04%
Total Non-Operating Expenses:1,317,488 665,504 108,319 817,420 151,916 112,059 681,628 135,792 19.92%
Total Expenses 33,512,521 16,877,015 2,400,244 16,245,797 (631,219)2,200,564 15,733,260 512,536 3.26%
Net Position Before Capital Contributions 6,790,787 4,514,244 1,037,747 5,443,201 928,957 1,185,477 5,225,963 217,237 4.16%
Capital Contributions (Non-Cash - - 5,894 149,382 149,382 - 3,294 146,088 0.00%
Transaction GASB 34 Compliant)
Net Position Before Depreciation 6,790,787 4,514,244 1,043,641 5,592,583 1,078,339 1,185,477 5,229,257 363,325 6.95%
Depreciation & Amortization 7,720,659 3,860,330 648,988 3,882,607 22,277 614,750 3,683,222 199,385 5.41%
Total Net Position ($929,872)$653,914 394,653 1,709,976 $1,056,062 $570,727 $1,546,035 $163,940 10.60%
(295,000) (147,500) (21,023)(117,413) (117,413) (28,260) (202,694) 85,281 -42.07%
(With November 30, 2018 for comparison purposes)
Page 21 of 47
Annual YTD Dec YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR
Budget Budget Actual Actual (Under)Over Dec Actual Actual (thru vs vs
FY20 FY20 FY20 FY20 YTD Budget FY19 Dec 2019) PY Actual $PY Actual %
Revenue (Operating):
Water Revenue (Residential)16,548,758$ $9,257,375 1,011,679$ 9,247,609$ (9,766)$ 1,051,914$ 8,949,207$ 298,402$ 3.33%
Water Revenue (Commercial & Fire Det.)1,872,073 1,047,238 124,191 951,934 (95,304) 121,407 999,632 (47,698) -4.77%
Water Revenue (Landscape/Irrigation)3,917,982 2,191,719 219,982 2,396,747 205,028 220,025 2,485,894 (89,147) -3.59%
Water Revenue (Service Charge)10,988,263 5,494,132 919,349 5,439,055 (55,077) 837,458 5,014,339 424,716 8.47%
Other Operating Revenue 902,996 451,498 71,667 513,872 62,374 63,101 563,782 (49,910) -8.85%
Total Operating Revenue:34,230,072 18,441,961 2,346,868 18,549,217 107,255 2,293,905 18,012,854 536,363 2.98%
(52,225)
Revenue (Non-Operating):
Interest 698,777 349,389 29,075 251,995 (97,394) 41,121 274,682 (22,687) -8.26%
Property Tax 1,820,471 920,976 647,202 993,808 72,832 598,376 947,340 46,468 0.00%
Other Non-Operating Revenue 608,430 304,215 78,138 382,458 78,243 135,278 332,467 49,991 15.04%
Total Non-Operating Revenue:3,127,678 1,574,580 754,415 1,628,261 53,681 774,775 1,554,489 73,772 4.75%
Total Revenue 37,357,750 20,016,541 3,101,283 20,177,478 160,937 3,068,680 19,567,343 610,135 3.12%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)15,110,810 8,452,987 1,058,481 8,109,201 (343,787) 1,020,619 8,222,838 (113,637) -1.38%
Salary Related Expenses 10,528,255 4,668,646 698,854 4,341,970 (326,676) 695,531 4,332,537 9,433 0.22%
Supplies & Services:
Communications 228,183 114,092 5,426 109,495 (4,597) 9,333 84,397 25,098 29.74%
Contractual Services 496,717 200,859 31,643 193,925 (6,934) 20,817 171,428 22,497 13.12%
Data Processing 324,069 162,035 44,184 154,254 (7,780) 50,072 161,661 (7,407) -4.58%
Dues & Memberships 78,862 59,431 11,075 68,351 8,920 4,356 67,795 557 0.82%
Fees & Permits 290,271 158,636 79,041 168,485 9,850 10,000 92,375 76,110 82.39%
Insurance 304,468 139,734 22,752 140,253 519 23,322 136,293 3,960 2.91%
Materials 948,195 474,098 68,885 471,008 (3,090) 40,453 423,632 47,376 11.18%
District Activities, Emp Recognition 43,371 21,686 6,909 18,106 (3,580) 6,590 21,317 (3,211) -15.06%
Maintenance 565,165 262,583 53,228 263,730 1,148 44,951 177,620 86,111 48.48%
Non-Capital Equipment 170,778 85,389 16,925 88,840 3,451 6,506 71,772 17,068 23.78%
Office Expense 33,950 16,975 2,960 22,681 5,706 3,877 16,838 5,843 34.70%
Professional Services 585,971 318,486 50,890 328,875 10,390 19,496 189,160 139,715 73.86%
Training 78,301 21,650 3,444 11,138 (10,512) 1,703 16,842 (5,704) -33.87%
Travel & Conferences 126,278 40,639 10,560 35,127 (5,512) 7,247 37,147 (2,020) -5.44%
Uncollectible Accounts 4,185 2,092 (64) 3,223 1,130 1,515 1,954 1,268 64.89%
Utilities 179,258 97,129 20,844 111,802 14,673 13,167 84,998 26,804 31.53%
Vehicle Equipment 335,600 182,800 16,533 182,780 (20) 22,854 137,729 45,051 32.71%
Supplies & Services Sub-Total 4,793,620 2,358,310 445,236 2,372,073 13,763 286,259 1,892,958 479,116 25.31%
Total Operating Expenses 30,432,685 15,479,944 2,202,571 14,823,244 (656,700) 2,002,409 14,448,333 374,911 2.59%
Expenses (Non-Operating):
Interest on Long Term Debt 1,303,967 651,984 107,685 653,941 1,957 111,601 681,008 (27,067) -3.97%
Other Expense 13,520 13,520 634 139,214 125,694 458 (7,742) 146,956 1898.17%
Total Non-Operating Expenses:1,317,487 665,504 108,319 793,155 127,651 112,059 673,266 119,889 17.81%
Total Expenses 31,750,172 16,145,447 2,310,890 15,616,399 (529,048) 2,114,468 15,121,599 494,800 3.27%
Net Position Before Capital Contributions 5,607,578 3,871,094 790,393 4,561,079 689,985 954,212 4,445,744 115,335 2.59%
Capital Contributions (Non-Cash Transaction -- - - 81,810 81,810 - - 81,810 -
GASB 34 Compliant)
Net Position Before Depreciation 5,607,578 3,871,094 790,393 4,642,889 771,795 954,212 4,445,744 197,145 4.43%
Depreciation & Amortization 6,289,903 3,144,952 528,212 3,167,800 22,849 500,254 2,996,249 171,551 5.73%
Total Net Position (682,325)$ 726,143$ 262,181$ 1,475,089 748,946$ 453,958$ 1,449,495$ 25,594$ 1.77%
Capital - Direct Labor (225,000) (112,500)(17,796) (97,063) 15,437 (22,037) (160,276) 63,213 -39.44%
Yorba Linda Water District
Water Fund
For Period Ending December 31, 2019
(With November 30, 2018 for comparison purposes)
Page 22 of 47
$17,464,228
$16,372,693
$17,918,355
$19,140,614 $19,567,343
$20,177,478
3.12%
$13,934,563
$12,807,895
$14,099,194
$14,972,725 $15,121,599 $15,616,399
3.27%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019
Water Revenues & Expenses -December
(excludes Depreciation, Special Items, and Contributed Capital )
Total Revenue Total Expenses
Page 23 of 47
Annual YTD Dec YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR
Budget Budget Actual Actual (Under)Over Dec Actual Actual (thru vs vs
FY20 FY20 FY20 FY20 YTD Budget FY19 Dec 2019)PY Actual $PY Actual %
Revenue (Operating):
Sewer Charge Revenue 2,421,665$ 1,210,833$ 200,397$ 1,201,033$ (9,800)$ 184,367$ 1,118,586$ 82,447$ 7.37%
Locke Ranch Assessments 324,173 54,024 116,498 183,218 129,194 116,310 166,786 16,432 0.00%
Other Operating Revenue 61,712 40,856 13,018 59,144 18,288 1,885 38,300 20,844 54.42%
Total Operating Revenue:2,807,550 1,305,713 329,913 1,443,395 137,682 302,562 1,323,672 119,723 9.04%
Revenue (Non-Operating):
Interest 113,528 56,764 5,712 44,355 (12,409)4,323 47,801 (3,446)-7.21%
Other Non-Operating Revenue 24,480 12,240 1,083 23,769 11,529 10,435 20,407 3,362 16.47%
Total Non-Operating Revenue:138,008 69,004 6,795 68,124 (880)14,758 68,208 (84) -0.12%
Total Revenue 2,945,558 1,374,717 336,708 1,511,519$ 136,802 317,320 1,391,880 119,639 8.60%
Expenses (Operating):
Salary Related Expenses 1,136,668 519,728 71,298 455,954 (63,774)67,502 423,919 32,035 7.56%
Supplies & Services:
Communications 13,412 6,706 408 4,334 (2,372)703 4,239 95 2.23%
Contractual Services 30,764 15,382 2,159 12,407 (2,976)1,516 10,776 1,631 15.14%
Data Processing 21,382 10,691 1,027 6,085 (4,606)1,562 11,031 (4,946)-44.84%
Dues & Memberships 5,928 2,964 834 5,145 2,181 328 5,103 42 0.82%
Fees & Permits 15,509 7,755 1,432 8,883 1,129 666 6,254 2,630 42.05%
Insurance 22,917 11,459 1,713 14,540 3,082 1,755 10,189 4,351 42.71%
Materials 65,206 17,603 949 6,045 (11,558)369 25,681 (19,636)-76.46%
District Activities, Emp Recognition 3,264 1,632 520 1,363 (269)496 1,536 (173)-11.29%
Maintenance 171,135 41,568 610 19,388 (22,180)563 43,528 (24,140)-55.46%
Non-Capital Equipment 39,542 19,771 966 11,688 (8,083)3,089 14,054 (2,366)-16.84%
Office Expense 2,555 1,278 222 1,656 379 291 1,099 557 50.64%
Professional Services 156,229 36,115 2,167 16,142 (19,973)1,130 16,241 (99)-0.61%
Training 8,569 4,284 472 6,300 2,016 587 2,214 4,086 184.57%
Travel & Conferences 14,362 7,181 1,267 3,892 (3,289)1,649 3,835 57 1.49%
Uncollectible Accounts 315 157 (13) 294 136 181 167 126 75.33%
Utilities 13,493 6,746 1,569 8,415 1,669 991 6,711 1,704 25.39%
Vehicle Equipment 41,100 20,550 1,751 22,601 2,051 2,716 16,722 5,879 35.16%
Supplies & Services Sub-Total 625,681 211,840 18,053 149,178 (62,663) 18,594 179,381 (30,203) -16.84%
Total Operating Expenses 1,762,349 731,568 89,351 605,132 (126,437) 86,096 603,300 1,832 0.30%
Expenses (Non-Operating):
Other Expense - - 24,265 24,265 - 8,361 15,904 190.21%
Total Non-Operating Expenses:- - - 24,265 24,265 - 8,361 15,904 0.00%
Total Expenses 1,762,349 731,568 89,351 629,397 (102,171) 86,096 611,661 17,736 2.90%
Net Position Before Capital Contributions 1,183,209 643,149 247,357 882,122 238,973 231,225 780,219 101,903 13.06%
Capital Contributions (Non-Cash Transaction -- - 5,894 67,572 67,572 - 3,294 64,279 1951.68%
GASB 34 Compliant)
Net Position Before Depreciation 1,183,209 643,149 253,251 949,694 306,545 231,225 783,513 166,181 21.21%
Depreciation & Amortization 1,430,756 715,378 120,776 714,806 (572)114,495 686,972 27,834 4.05%
Total Net Position (247,547) (72,229) 132,475 234,888 307,117 116,729 96,541 138,347 143.30%
Capital - Direct Labor (70,000)(35,000) (3,227) (20,350)14,650 (6,224) (42,418)22,068 -52.03%
Yorba Linda Water District
Sewer Fund
For Period Ending December 31, 2019
(With November 30, 2018 for comparison purposes)
Page 24 of 47
$943,047 $963,930
$1,178,223 $1,201,117
$1,391,880
$1,511,519
8.60%
$644,490 $618,522 $658,818 $716,519
$611,661 $629,397
2.90%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019
Sewer Revenues & Expenses -December
(excludes Depreciation, Special Items, and Contributed Capital)
Total Revenue Total Expenses
Page 25 of 47
$4,241,217
$5,138,936 $4,998,570 $5,014,339 5,439,055
$932,629
$1,001,430 $1,051,085 $999,632
951,934$1,583,285
$2,182,678 $2,369,566 $2,485,894 2,396,747
$6,842,319
$8,055,017
$8,761,118 $8,949,207
$9,247,609
$13,599,450
$16,378,061
$17,180,339 $17,449,072
$18,035,345
3.36% 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
$16,000,000
$18,000,000
$20,000,000
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 26 of 47
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
1,100,471 1,058,481
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 27 of 47
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
58,238 56,992
61,680
49,466
63,184
80,884 74,233
63,745
66,195
54,463
56,459
45,308
49,885
59,881 58,311
66,613
63,789 58,343 53,077
49,341
41,197
49,277
29,976 29,994
136,162 131,653
154,349
136,153
154,590
207,053 220,117
183,783
178,617
142,649
169,608
150,522
123,019
138,015
66,613
179,230
143,525 147,368
137,653
128,481
62,133
100,928
59,372 52,049
CONSUMPTION BY UNITS CCF
Residential Commercial Landscape
Page 28 of 47
ITEM NO. 7.4.
AGENDA REPORT
MEETING DATE:January 28, 2020
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 December 31,
2019
RECOMMENDATION:
That the Board of Directors receive and file the Cash and Investment Report for Period Ending
December 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 December 31, 2019 is 1.77%.
The District's Total Cash and Investment balance at December 31, 2019 resulted in an overall
increase in the investment balance from the previous month is approximately $2,719,816. A
larger balance includes an increase in the Water Operating Fund of $2,375,157 and $288,512
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 Water Capital Project Reserve
Page 29 of 47
Fund had a decrease of $6,925 to cover the cost of pay-go capital purchases.
STRATEGIC PLAN INITIATIVE(S):
G2 4C - Manage cash flow to maximize investment income.
ATTACHMENTS:
1.Investment Reports & Graphs December 2019
Page 30 of 47
Market %Date of Percent
Value Par of Total Institution Maturity Yield
Checking Account:
2,799,605$ 2,799,605$ Wells Fargo Bank
2,799,605$ 2,799,605$ 6.71%Total 0.00%
Money Market Accounts:
83$ 83$ US Bank (Revenue Bonds)1.22%
3,747,575 3,747,575 US Bank (Money Market)1.39%
2,030,204 2,030,204 Public Agency Retirement Svcs. (PARS)
5,777,861$ 5,777,861$ 13.86%Total 1.39%
Certificates of Deposits:
248,684 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.65%
247,432 248,000 EnerBank USA Salt Lake City 08/26/20 1.30%
179,671 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.25%
247,616 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.60%
249,502 247,000 PrivateBank & Tr Chicago Ill CTF 03/30/22 2.18%
246,860 245,000 Goldman Sachs Bank 06/28/21 2.18%
246,860 245,000 Morgan Stanley Private Bank 06/28/21 2.18%
247,577 245,000 Capital One Bank USA 06/27/22 2.18%
247,577 245,000 Capital One Bank NA 06/27/22 2.18%
247,874 245,000 Ally Bank 06/27/22 2.22%
247,874 245,000 Sallie Mae Bank 06/27/22 2.22%
248,957 245,000 Synchrony 05/17/22 2.41%
249,616 245,000 Morgan Stanley Bank NA 06/13/22 2.50%
3,156,098$ 3,132,000$ 7.57%Total 2.02%
Corporate Notes:
503,595$ 500,000 Wells Fargo Co.03/04/21 2.48%
503,870$ 500,000 JP Morgan Chase Co.03/01/21 2.53%
1,007,465$ 1,000,000$ 2.42%Total 2.51%
Pooled Investment Accounts:
18,932,437$ 18,932,437$ Local Agency Investment Fund 2.04%
1,386,080 1,382,149 CalTRUST Short Term 1.82%
8,640,393 8,608,059 CalTRUST Medium Term 1.71%
28,958,911$ 28,922,645$ 69.45%1.93%
41,699,940$ 41,632,111$ 100%Total Investments 1.77%
Per Government Code requirements, the Investment Report is in compliance with the Yorba
Linda Water District's Investment Policy, and there are adequate funds available to meet
budgeted and actual expenditures for the next six months.
12/31/19
Yorba Linda Water District
Cash & Investment Portfolio Report
December 31, 2019
________________________________
Kelly McCann, Senior Accountant
Page 31 of 47
Below is a chart summarizing the yields as well as terms and maturities for the month of December 2019:
Average # of
Month Portfolio Days to
of 2019 Yield Maturity
December 1.77%72
Below are charts comparing operating fund interest for current and prior fiscal years.
Actual Interest 12/31/2018 12/31/2019
Monthly - December 50,694$ 34,787$
Year-to-Date 327,733$ 296,350$
Budget 2018/2019 2019/2020
Interest Budget, December YTD 179,000$ 406,153$
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 $38.98 million which is allocated between the established
reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for the Bond payment and PARS for
the pension/OPEB payments. The number of Days in Cash are 399 for the Un-Restricted Water Reserve balance and 1,119 for the
Un-Restricted Sewer Reserve balances, as of December 31, 2019.
FY20 Reserve Cash and
Requirements Investments
November 2020 % Alloc December 2020 % Alloc "Target Available for
Fund Description Balance 11/30/2019 Balance 12/31/2019 Levels"CY Obligations
Water Operating Reserve 12,390,223$ 33.95%14,808,014$ 37.93%12,427,055$ 2,380,959$
Water Emergency Reserve 7,195,082 19.71%7,207,585 18.46%7,115,108 92,477
Water Capital Project Reserve 7,056,359 19.33%7,059,617 18.08%7,314,221 (254,604)
Rate Stabilization Reserve 4,150,656 11.37%4,157,005 10.65%4,093,400 63,605
Un-Restricted Water Reserve Balance 30,792,320 33,232,221 30,949,784 2,282,437
Conservation Reserve 104,047 0.29%104,047 0.27%- 104,047
Employee Liability Reserve 304,011 0.83%304,011 0.78%400,000 (95,989)
Restricted Reserve Balance 408,058 408,058 400,000 8,058
Sewer Operating Reserve 1,721,650 4.72%1,826,719 4.68%1,335,465 491,254
Sewer Emergency Reserve 1,933,004 5.30%1,934,626 4.95%1,914,347 20,279
Sewer Capital Project Reserve 1,643,162 4.50%1,643,423 4.21%1,909,045 (265,622)
Un-Restricted Sewer Reserve Balance 5,297,816 5,404,769 5,158,857 245,912
Total Reserve Balances 36,498,195$ 100.00%39,045,049$ 100.00%36,508,641$ 2,536,408$
Water Operating 401,901 359,267
Sewer Operating 81,895 265,338
483,795 624,605
Rev. Bond 2012A & 2017A-Principal & Interest 83 83
Public Agency Retirement Svc. -PARS (Restricted)1,998,051 2,030,204
Total Cash and Investments 38,980,123$ 41,699,940$
Cash & Investment Summary Report
Cash & Investment Summary Comparison Between Current and Previous Month
Wells Fargo Bank Checking
US Bank Held (Restricted)
Page 32 of 47
Checking Account:2,799,605$ 6.71%
Money Market Accounts:5,777,861$ 13.86%
Certificates of Deposit:3,156,098$ 7.57%
Corporate Notes:1,007,465$ 2.42%
Pooled Investment Accounts:28,958,911$ 69.45%
Total 41,699,940$ 100.00%
Checking Account:
1.24%
Money Market Accounts:
18.35%
Certificates of Deposit:
10.00%
Corporate Notes:
2.58%
Pooled Investment Accounts:
67.83%
INVESTMENT BALANCES (AS OF 11-30-2019)
Checking Account:Money Market Accounts:Certificates of Deposit:Corporate Notes:Pooled Investment Accounts:
Page 33 of 47
Yorba Linda Water District
Fair Value Measurement Report
December 31, 2019
Quoted Observable Unobservable
Prices Inputs Inputs
Investments Level 1 Level 2 Level 3 Total
CalTRUST Investment Pool -$ 10,026,473$ -$ 10,026,473$
Local Agency Investment Fund - 18,932,437 - 18,932,437
Corporate Notes 1,007,465 1,007,465
Negotiable Certificates of Deposit - 3,156,098 - 3,156,098
Total Investments -$ 33,122,474$ -$ 33,122,474$
Page 34 of 47
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
10/31/2019 Investment Gain/(Loss)14,236.16 6,066.94 1,564.44 716.87 1,998,462.88
10/31/2019 Management Fees (259.48)(110.58)(28.51)(13.07) 1,998,051.24
11/30/2019 Investment Gain/(Loss)20,875.28 8,896.31 2,294.02 1,051.18 2,031,168.03
11/30/2019 Management Fees (607.78)(259.01)(66.79)(30.61) 2,030,203.84
Account Balance by Account Type 1,279,745.67 545,382.43 140,633.69 64,442.05 2,030,203.84$
63%27%7%3%100%
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 70,287.57$ 23,267.51 93,555.08
Total Management Fees from Inception (2,755.21)$ (782.03) (3,537.24)
Balance as of 11-30-19 = 1,420,379.36$ 609,824.48$ 2,030,203.84$
PARS (Public Agency Retirement Services) Funding Reconciliation
Page 35 of 47
$30,381,649 $29,312,289
$29,397,305
$31,144,090
$33,232,221
414 415 401 398 399
60
110
160
210
260
310
360
410
460
$20,000
$5,020,000
$10,020,000
$15,020,000
$20,020,000
$25,020,000
$30,020,000
$35,020,000
Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019
Unrestricted Reserves & Days in Cash (Water)
Unrestricted Reserves (Water)Days in Cash (Water)
Page 36 of 47
ITEM NO. 7.5.
AGENDA REPORT
MEETING DATE:January 28, 2020
TO:Board of Directors
FROM:Marc Marcantonio, General Manager
STAFF CONTACTS:John DeCriscio, Operations Manager
Harold Hulbert, Operations Assistant
SUBJECT:Purchase of 2021 Dump Truck
RECOMMENDATION:
That the Board of Directors authorize the General Manager to purchase a 2021 Dump Truck
from Inland Kenworth - Montebello in the amount of $206,685.24
SUMMARY:
It is District policy to submit vehicle and major equipment purchases to the Board of Directors
for approval. The District's purchasing policy also dictates the means and methods for
procurement of vehicles and equipment of this value. The District’s procedures have been
followed in obtaining bids for the subject Dump Truck.
FISCAL IMPACT:
Budgeted: $210,000
Total Budget: $210,000
Cost Estimate: $206,685.24
Funding Source: Water
BACKGROUND:
Funds are included in the FY21 budget for the purchase of a Dump Truck to replace Unit
#144, a 2000 GMC with 69,349 miles and extensive wear.
As the Board of Directors approved a two year budget, staff desires to proceed with the
replacement of Unit #144 by ordering a 2021 Dump Truck. These larger vehicles have a long
lead time and if ordered now, this one would be received in the first quarter of FY21.
Page 37 of 47
After working with staff to develop a set of specifications, a Competitive Bid packet was sent to
five (5) vendors that could provide the Dump Truck the District requires. The submission
deadline was set as January 6, 2020, with the bid opening at 2:00 p.m. Five bids were
received on time and met the specifications in the bid packet:
The following are the bids received in order of cost:
1.Inland Kenworth - Montebello: $206,685.24
2.Inland Kenworth – Carson: $208,860.24
3.General Truck Body : $213,000.00
4.Haaker Equipment Company: $213,889.00
5.American Truck Bodies: $215,000.00
Staff reviewed each of the bids to ensure all specifications where met. All five (5) bidders
submitted their bids in the approved District format, and as such all were accepted as
complete.
Staff recommends accepting the Bid from Inland Kenworth - Montebello in the amount of
$206,685.24 for a 2021 Kenworth Dump Truck, as the lowest responsive bidder that met the
District specifications. Inland Kenworth - Montebello has the equipment and resources
needed to meet the District's needs for this vehicle and supported equipment.
Copies of the Specifications and Bid Packet are available for review upon request.
PRIOR RELEVANT BOARD ACTION:
The Board approved the FYS 20-21 budget which included $210,000.00 in the Vehicle &
Capital Outlay section for this vehicle.
Page 38 of 47
ITEM NO. 8.1.
AGENDA REPORT
MEETING DATE:January 28, 2020
TO:Board of Directors
FROM:Marc Marcantonio, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
Kaden Young, Senior Management Analyst
SUBJECT:Reimbursement of Costs Incurred Before Issuance of Tax-Exempt
Obligations for Funding of District's Capital Improvement Program
RECOMMENDATION:
That the Board of Directors: (1) direct staff to issue a Request for Proposal to pursue a Line of
Credit; and (2) adopt Resolution No. 2020-XX Regarding Intention to Issue Tax-Exempt
Obligations for the purpose of permitting the reimbursement of not-to-exceed $20,000,000 for
incurred costs related to the current capital improvement program which are incurred before
the issuance of tax-exempt obligations, and rescind Resolution No. 18-25
SUMMARY:
The District is currently undertaking its current capital improvement program on a pay-as-you-
go basis, and the costs thereof are being paid by the District's water system reserve
funds.The District may elect to finance certain portions of its current capital improvement
program from tax-exempt obligations. Federal tax law allows the District to reimburse itself
from the proceeds of tax-exempt obligations for capital costs that the District pays prior to the
issuance of such tax-exempt obligations. In order to reimburse itself, the Board of Directors
must adopt a resolution stating its intent to reimburse itself should tax-exempt obligations be
issued.
Stradling Yocca Carlson & Rauth, the District's bond counsel, has prepared a resolution
permitting reimbursement of not-to-exceed $20,000,000 for costs related to the current capital
improvement program which are incurred before tax-exempt obligations; if any, are incurred.
Costs that are eligible for reimbursement must have been paid no more than six months
before the adoption of the resolution, and the reimbursement must occur within three years
after the eligible costs are paid. The foregoing limitations do not apply to "soft" costs such as
preliminary studies and reports.
Page 39 of 47
Adoption of the reimbursement resolution will allow for reimbursement of construction-related
costs incurred by the water system reserve funds, which will replenish reserve funds available
for other approved projects.
BACKGROUND:
In anticipation of the State of California – Division of Drinking Water lowering the Response
Levels for Per- and Polyfluoroalkyl Substances (PFAS), staff worked with our Municipal
Advisor and Bond Counsel on determining the financial impacts on the District. Anna Sarabian
and Lora Carpenter of Fieldman|Rolapp, along with Cyrus Torabi of Stradling Yocca will be
present at the meeting to discuss such findings.
ATTACHMENTS:
1.Resolution
2.Presentation
Resolution No. 2020-XX Regarding Intention to Issue Tax-Exempt Obligations and Rescinding Resolution No. 18-25 1 of 4
RESOLUTION NO. 2020-XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
REGARDING INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS
AND RESCINDING RESOLUTION NO. 18-25
WHEREAS,the Yorba Linda Water District (the “District”) is a county water district that
is duly organized and existing under and pursuant to Division 12 of the
California Water Code (Section 30000 et seq.); and
WHEREAS,the District desires to finance the costs of acquiring, constructing and
installing certain public facilities and improvements related to its water
system, as provided in Exhibit A attached hereto and incorporated herein
(the “Project”); and
WHEREAS,the District intends to finance the acquisition, construction and installation
of the Project or portions of the Project with the proceeds of the sale of
obligations the interest upon which is excluded from gross income for
federal income tax purposes (the “Obligations”); and
WHEREAS,the District desires to pay certain costs with respect to the Project prior to
the issuance of the Obligations from available moneys of the District and
to reimburse itself for such costs from a portion of the proceeds of the sale
of the Obligations.
NOW, THEREFORE, the Board of Directors of the Yorba Linda Water District hereby
finds, determines, declares and resolves as follows:
SECTION 1.The foregoing recitals are true and correct.
SECTION 2.The District reasonably expects, and hereby states its intention, to
reimburse itself for Project costs incurred prior to the issuance of the
Obligations with proceeds of the Obligations. Exhibit A describes either
the general character, type, purpose, and function of the Project or the
fund or account from which Project costs are to be paid and the general
functional purpose of the fund or account.
SECTION 3.The reasonably expected maximum principal amount of the Obligations
that is anticipated to be used for such reimbursement is $20,000,000.
SECTION 4.Except as described in Section 8 below, this resolution is being adopted
not later than 60 days after the payment of the original expenditures (the
“Expenditures Date or Dates”).
Page 41 of 47
Resolution No. 2020-XX Regarding Intention to Issue Tax-Exempt Obligations and Rescinding Resolution No. 18-25 2 of 4
SECTION 5.Except as described in Section 8 below, the expected date of issue of the
Obligations will be within 18 months of the later of: (a) the Expenditure
Date or Dates; or (b) the date that the Project is placed in service; provided
that the reimbursement may not be made more than three years after the
Expenditure Date or Dates.
SECTION 6.Proceeds of the Obligations to be used to reimburse the District for Project
costs are not expected to be used, within one year of reimbursement,
directly or indirectly to pay debt service with respect to any obligation
(other than to pay current debt service coming due within the next
succeeding one year period on any tax-exempt obligation of the District
(other than the Obligations)) or to be held as a reasonably required
reserve or replacement fund with respect to an obligation of the District or
any entity related in any manner to the District, or to reimburse any
expenditure that was originally paid with the proceeds of any obligation,
or to replace funds that are or will be used in such manner.
SECTION 7.This resolution is consistent with the budgetary and financial
circumstances of the District as of the date hereof. No moneys from
sources other than the Obligations are, or are reasonably expected to be,
reserved, allocated on a long-term basis or otherwise set aside by the
District (or any related party) pursuant to their budget or financial policies
with respect to the Project costs. To the best of our knowledge, this Board
of Directors is not aware of the previous adoption of official intents by the
District that have been made as a matter of course for the purpose of
reimbursing expenditures and for which tax exempt obligations have not
been issued.
SECTION 8.The limitations described in Sections 4 and 5 above do not apply to: (a)
costs of issuance of the Obligations; (b) an amount not in excess of the
lesser of $100,000 or five percent (5%) of the proceeds of the Obligations;
or (c) any preliminary expenditures, such as architectural, engineering,
surveying, soil testing, and similar costs other than land acquisition, site
preparation, and similar costs incident to commencement of construction,
not in excess of twenty percent (20%) of the aggregate issue price of the
Obligations that finances the Project for which the preliminary
expenditures were incurred.
SECTION 9.This resolution is adopted as official action of the District in order to comply
with Treasury Regulation § 1.150-2 and any other regulations of the
Internal Revenue Service relating to the qualification for reimbursement of
District expenditures incurred prior to the date of issue of the Obligations,
is part of the District’s official proceedings, and will be available for
inspection by the general public at the main administrative office of the
District.
Page 42 of 47
Resolution No. 2020-XX Regarding Intention to Issue Tax-Exempt Obligations and Rescinding Resolution No. 18-25 3 of 4
SECTION 10.This resolution shall take effect immediately and Resolution No. 18-25 is
hereby rescinded.
PASSED AND ADOPTED this 28th day of January 2020 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Phil Hawkins, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Page 43 of 47
Resolution No. 2020-XX Regarding Intention to Issue Tax-Exempt Obligations and Rescinding Resolution No. 18-25 4 of 4
EXHIBIT A
DESCRIPTION OF PROJECT
Upgrades, acquisitions, replacements, rehabilitation and construction of facilities
and equipment for the District’s water system, including but not limited to upgrades to
water storage reservoirs, pipeline replacements, pumping stations, water treatment
facility, and improvements to the District’s administrative headquarters facility.
Page 44 of 47
Financial Forecasting
Yorba Linda Water District
Board Meeting
January 28, 2020
Introduction
•Expectation for the State to impose response levels for substances known as PFAS
▫Requires treatment of YLWD groundwater wells
•Items to consider:
▫Additional O&M cost as a result of purchasing imported water during the construction/treatment of YLWD groundwater wells
▫Meet current debt service payments and debt service coverage requirements
▫Maintenance of YLWD water infrastructure
•Items for review:
▫Current CIP program
▫District available reserves and existing debt covenants
▫Water revenues received from rate increases
2
Overview of Scenarios
•General Assumptions:
▫Switch to 100% imported water on 2/1/2020 through
FYE 2022
▫FYE 2023 and FYE 2024 assumes 75/25% water
production from groundwater versus imported water
▫Orange County Water District pays for the PFAS
treatment plant construction costs
▫9.00% base charge adjustment in FY 2020 and FY 2021
▫No adjustments in O&M costs for the maintenance and
upkeep of the newly constructed treatment plant
▫Does not include PARS payment from net revenues
3
Approved Capital Improvement Plan
$3.20 $4.11 $4.66 $4.46 $5.06
$0.75
$0.72
$0.53 $0.63
$0.70
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024MillionsAnnual Capital Needs
Total CIP Annual Capital R&R
Total 5-YR CIP Needs: $21,495,691
Total 5-YR Capital R&R Needs: $3,322,256
4
Financial Scenarios
5
Scenario 1 –Base Case
•No change in the current CIP program approved
by the Board
•No additional rate increases beyond general
assumptions
•O&M and CIP needs are funded with available
revenues and reserves
6
Scenario 1 –Base Case
•FY 2021 and FY 2022 net revenues are not sufficient to cover required debt service payments
▫An aggregate of ~$6.1 million is used from District reserves to cover debt service payments in those years
•As a result, reserves are projected to decrease below minimum policy targets reaching critically low levels by FY 2022
•Debt covenants require District to maintain rates and charges that result in net revenues equal to a minimum of 125% of annual debt service
▫An increase of ~$7.4 million in aggregate is needed to adhere to these covenants
▫Rates need to be increased by 32.5% in FY 2021 and 7.1% in FY 2022 to satisfy this covenant
0.0%
9.0%9.0%
0.0%0.0%0.0%
269%172%
14%
-37%
215%
154%
-200%
-100%
0%
100%
200%
300%
0%
20%
40%
60%
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 CoverageRev Adj
Water Revenue Adjustments & Coverage Chart
Rev Adjustment Coverage Ratio (right axis)
Required Coverage -125%Alert Coverage
Target Debt Coverage - 225%
$31 $27
$19
$9 $5
$0
-$10
$0
$10
$20
$30
$40
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Millions Total Water Reserve Ending Balances
Ending Balances Proposed Min Balances
Proposed Target Balances Alert Balances
Existing Min Balances
7
Scenario 2 –Defer all CIP
•Defers entire CIP program
•No additional rate increases beyond general
assumptions
•O&M needs are funded with available revenues
and reserves
8
Scenario 2 –Defer all CIP
•FY 2021 and FY 2022 net revenues are not sufficient to cover required debt service payments
▫An aggregate of ~$5.8 million is used from District reserves to cover debt service payments in those years
•Debt covenants require District to maintain rates and charges that result in net revenues equal to a minimum of 125% of annual debt service
▫An increase of ~$7.2 million in aggregate is needed to adhere to these covenants
▫Rates need to be increased by 31.8% in FY 2021 and 7.1% in FY 2022 to satisfy this covenant
0.0%
9.0%9.0%
0.0%0.0%0.0%
269%172%
17%
-33%
219%
158%
-200%
-100%
0%
100%
200%
300%
0%
20%
40%
60%
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 CoverageRev Adj
Water Revenue Adjustments & Coverage Chart
Rev Adjustment Coverage Ratio (right axis)
Required Coverage -125%Alert Coverage
Target Debt Coverage - 225%
$31 $30 $26 $23 $23
$21
$0
$10
$20
$30
$40
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Millions Total Water Reserve Ending Balances
Ending Balances Proposed Min Balances
Proposed Target Balances Alert Balances
Existing Min Balances
9
Scenario 3a –LOC & Debt Defeasance
•$20 million line of credit to fund CIP and PFAS
treatment plant construction costs
•Defease $5.4 million in principal and interest
payments in certain maturities
•No additional rate increases beyond general
assumptions
•O&M needs are funded with available revenues
and reserves
10
Scenario 3a –LOC & Debt Defeasance
•Series 2017 and Series 2012
principal and interest
payments on 10/1/2020
and 10/1/2021 and
10/1/2038 maturity for
Series 2017 only are
defeased early in FY 2020
•Does not meet 125% debt
service coverage in FY 2021
and FY 2022
•Reserves are projected to
drop below minimum
reserve levels starting in FY
2022
0.0%
9.0%9.0%
0.0%0.0%0.0%
269%
172%
22%
-68%
170%
120%
-200%
-100%
0%
100%
200%
300%
0%
20%
40%
60%
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 CoverageRev Adj
Water Revenue Adjustments & Coverage Chart
Rev Adjustment Coverage Ratio (right axis)
Required Coverage -125%Alert Coverage
Target Debt Coverage - 225%
$31 $25 $22
$17
$13
$7
$0
$10
$20
$30
$40
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Millions Total Water Reserve Ending Balances
Ending Balances Proposed Min Balances
Proposed Target Balances Alert Balances
Existing Min Balances
11
Scenario 3b –LOC & Debt Defeasance
•$20 million line of credit to fund CIP and PFAS
treatment plant construction costs
•Defease $5.4 million in principal and interest
payments in certain maturities
•Additional rate increases above general
assumptions in FY 2021 and FY 2022
•O&M needs are funded with available revenues
and reserves
12
Scenario 3b –LOC & Debt Defeasance
•Series 2017 and Series 2012 principal and interest payments on 10/1/2020 and 10/1/2021 and 10/1/2038 maturity for Series 2017 only are defeased early in FY 2020
•Additional rate increase of 12% in FY 2021 for a total rate increase of 21% to meet 125% debt covenant
•Additional rate increase of 8.4% in FY 2022 to meet 125% debt covenant
•Reserves are projected to dip below minimum reserve levels starting in FY 2023
0.0%
9.0%
21.0%
8.4%
0.0%0.0%
269%260%
172%125%125%
212%
-200%
-100%
0%
100%
200%
300%
0%
20%
40%
60%
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 CoverageRev Adj
Water Revenue Adjustments & Coverage Chart
Rev Adjustment Coverage Ratio (right axis)
Required Coverage -125%Alert Coverage
Target Debt Coverage - 225%
$31 $25 $23 $22
$21 $18
$0
$10
$20
$30
$40
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Millions Total Water Reserve Ending Balances
Ending Balances Proposed Min Balances
Proposed Target Balances Alert Balances
Existing Min Balances
13
Summary
Scenarios DSC Days
Cash
Total Rate
Increase
CIP
Funded
Partial Debt
Defeasance
Line of
Credit
Scenario 1
FY 2021
FY 2022
FY 2023
14%
-37%
215%
169
75
54
9.0%
NA
NA
Yes No No
Scenario 2
FY 2021
FY 2022
FY 2023
17%
-33%
219%
236
184
237
9.0%
NA
NA
No No No
Scenario 3a
FY 2021
FY 2022
FY 2023
22%
-68%
170%
194
150
136
9.0%
NA
NA
Yes Yes Yes
Scenario 3b
FY 2021
FY 2022
FY 2023
125%
125%
260%
208
189
214
21%
8.4%
NA
Yes Yes Yes
14
Conclusion
•Pursue acquiring $20 million line of credit for CIP needs and PFAS treatment plant construction costs
•Defer PARS payments from net operating position
•Allow staff the option to pursue partial prepayment of Series 2012 and 2017 debt service in certain maturities
•Review operating and CIP needs in detail to determine funding requirements
•Conduct full rate study and implement recommended rate increase to ensure operating needs are met in addition to the continued maintenance of debt covenants, reserve policy targets and capital needs
15
Questions and Discussion
16
Disclaimer
These materials include an assessment of current market conditions,and include Fieldman,
Rolapp &Associates,Inc.assumptions about interest rates,execution costs,and other matters
related to municipal securities issuance or municipal financial products.These assumptions
may change at any time subsequent to the date these materials were provided.The financing
scenarios presented herein are not intended to be inclusive of every feasible or suitable
refinancing alternative.
Fieldman,Rolapp &Associates,Inc.is an SEC-registered Municipal Advisor,undertaking a
fiduciary duty in providing financial advice to public agencies.Compensation contingent on the
completion of a financing or project is customary for municipal financial advisors.To the
extent that our compensation for a transaction is contingent on successful completion of the
transaction,a potential conflict of interest exists as we would have a potential incentive to
recommend the completion of a transaction that might not be optimal for the public agency.
However,Fieldman,Rolapp &Associates,Inc.undertakes a fiduciary duty in advising public
agencies regardless of compensation structure.
17
ITEM NO. 10.1.
AGENDA REPORT
MEETING DATE:January 28, 2020
TO:Board of Directors
FROM:Marc Marcantonio, General Manager
STAFF CONTACTS:Annie Alexander, Executive Asst / Board Secretary
SUBJECT:Directors' Reports
The Directors will report on their attendance at the following events:
1.MWDOC Board - January 15, 2020 (Nederhood/Miller)
2.OCWA Luncheon - January 15, 2020 (Miller/Nederhood)
3.YL Planning Commission - January 15, 2020 (Hawkins - As Needed)
4.Memorial for Hank Wedaa - January 16, 2020 (Miller)
5.WACO Planning Committee - January 21, 2020
6.SAWPA Commission - January 21, 2020
7.YL City Council - January 21, 2020 (Hawkins)
8.OCWD Board - January 22, 2020 (Jones)
9.OCSD Board - January 22, 2020 (Jones)
Page 45 of 47
ITEM NO. 12.1.
AGENDA REPORT
MEETING DATE:January 28, 2020
TO:Board of Directors
FROM:Marc Marcantonio, General Manager
STAFF CONTACTS:Annie Alexander, Executive Asst / Board Secretary
SUBJECT:Meetings from January 29 - March 31, 2020
ATTACHMENTS:
1.BOD - Activities Calendar
Page 46 of 47
Board of Directors Activity Calendar
Event Date Time
January
MWDOC/OCWD Joint Planning Committee Wed, Jan 29 8:30 AM
YL Planning Commission Wed, Jan 29 6:30 PM Hawkins (As Needed)
ISDOC Thu, Jan 30 11:30 AM
February
ISDOC Executive Committee Tue, Feb 4 7:30 AM Nederhood
SAWPA Commission Tue, Feb 4 9:30 AM
YL City Council Tue, Feb 4 6:30 PM Jones
MWDOC Board Wed, Feb 5 8:30 AM Nederhood/Miller
OCSD Operations Committee Wed, Feb 5 5:00 PM Jones
OCWD Board Wed, Feb 5 5:30 PM
WACO Fri, Feb 7 7:30 AM
Board of Directors Regular Meeting Tue, Feb 11 6:30 PM
OC LAFCO Wed, Feb 12 8:15 AM
MWDOC Policy Forum Wed, Feb 12 5:30 PM Jones/Nederhood
YL Planning Commission Wed, Feb 12 6:30 PM Hawkins (As Needed)
WACO Planning Committee Tue, Feb 18 7:30 AM
SAWPA Commission Tue, Feb 18 9:30 AM
SAWPA Emerging Constituents Task Force Tue, Feb 18 1:30 PM Miller
YL City Council Tue, Feb 18 6:30 PM Hall
MWDOC Board Wed, Feb 19 8:30 AM Nederhood/Miller
OCWA Luncheon Wed, Feb 19 11:30 AM
UWI Spring Conference Wed, Feb 19 12:00 PM Jones/Nederhood
OCWD Board Wed, Feb 19 5:30 PM
UWI Spring Conference Thu, Feb 20 8:00 AM Jones/Nederhood
UWI Spring Conference Fri, Feb 21 8:00 AM Jones/Nederhood
Board of Directors Regular Meeting Tue, Feb 25 6:30 PM
OCSD Board Wed, Feb 26 6:00 PM Jones
YL Planning Commission Wed, Feb 26 6:30 PM Hawkins (As Needed)
March
ISDOC Executive Committee Tue, Mar 3 7:30 AM Nederhood
SAWPA Commission Tue, Mar 3 9:30 AM
YL City Council Tue, Mar 3 6:30 PM Miller
MWDOC Board Wed, Mar 4 8:30 AM Nederhood/Miller
OCSD Operations Committee Wed, Mar 4 5:00 PM Jones
OCWD Board Wed, Mar 4 5:30 PM
WACO Fri, Mar 6 7:30 AM
Board of Directors Regular Meeting Tue, Mar 10 6:30 PM
OC LAFCO Wed, Mar 11 8:15 AM
YL Planning Commission Wed, Mar 11 6:30 PM Hawkins (As Needed)
WACO Planning Committee Tue, Mar 17 7:30 AM
SAWPA Commission Tue, Mar 17 9:30 AM
YL City Council Tue, Mar 17 6:30 PM Nederhood
MWDOC Board Wed, Mar 18 8:30 AM Nederhood/Miller
OCWA Luncheon Wed, Mar 18 11:30 AM
OCWD Board Wed, Mar 18 5:30 PM
Board of Directors Regular Meeting Tue, Mar 24 6:30 PM
OCSD Board Wed, Mar 25 6:00 PM Jones
YL Planning Commission Wed, Mar 25 6:30 PM Hawkins (As Needed)
Interagency Committee Meeting with MWDOC and OCWD Thu, Mar 26 4:00 PM Hawkins/Nederhood
As of January 21, 2020
Page 47 of 47
BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING
ITEM NO. 8.1.
j�
FINANCIAL
IMPACTS OF
FOL--�WOkOAL"L--
SU65T,
aF oy., 4StFa�,'�^�,x }`t net. 4 ,'r'� t �i�`�'f tis 8a'L'��aF ✓'�, � �3 t
(PFAS)
/ aF tiT
JANUARY
r
•
., 2020
MATERIALS SUBMITTED BY: Kaden Young
MEETING DATE: January 28, 2020
ITEM NO. 8.1.
The Assumptions
u
Source of Water Construction Price Tag Mission Goal
Switch to 100% Water treatment O&M: $8M+/year Provide reliable water Implement required
Import Water plant may take up and protect public plan(s) to meet all
on to two years CAPeX: $20-30M+ health and the financial obligations
February 1, 2020 FYE22 environment with and Board-adopted
financial integrity policies
0 Yortia Linda AM
Walser District
/ 1/28/2020
MATERIALS SUBMITTED BY: Kaden Young
MEETING DATE: January 28, 2020
ITEM NO. 8.1.
Financial Metrics
AAIAA +
%
365
Rated Agency Debt Coverage 1 .
ys in Cash
Fitch ' :.. • Policy
Contractual
f
® Yortia Linda jft
Walser District
1/28/2020
MATERIALS SUBMITTED BY: Kaden Young
MEETING DATE: January 28, 2020
ITEM NO. 8.1.
EYorba Linda -
Water District
pop
1/28/2020
YLWD's
Municipal
Advisor
• Anna Sarabian, Principal
• Lora Carpenter, Asst. Vice President
HELDMAN ROLAPP
&ASSOCIATES
MATERIALS SUBMITTED BY: Kaden Young
MEETING DATE: January 28, 2020
ITEM NO. 8.1.
Monthly Service Charges
METER SIZES 9% 21°1 8.4%
%ii $21.20 $23.11 $1.91 $25.65 $2.54 $4.45
$27.81 $2.15
3/4 If $21.20 $23.11 $1.91 $25.65 $2.54 $4.45 $27.81 $2.15
3.If $35.41 $38.60 $3.19 $42.85 $4.25 $7.44 $46.45 $3.60
3. 1/2n $70.61 $76.96 $6.35 $85.44 $8.47 $14.83 $92.61 $7.18
2I $113.02 $123.19 $10.17 $136.75 $13.56 $23.73 $148.24 $11.49
3" $247.47 $269.74 $22.27 $299.44 $29.70 $51.97 $324.59 $25.15
4" $445.32 $485.40 $40.08 $538.84 $53.44 $93.52 $584.10 $45.26
6" $989.67 $1,078.74 $89.07 $1,197.50 $118.76 $207.83 $1,298.09 $100.59
® Yorba Linda
Water District
1/28/2020
MATERIALS SUBMITTED BY: Kaden Young
MEETING DATE: January 28, 2020