Loading...
HomeMy WebLinkAbout2009-05-28 - Board of Directors Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 28, 2009, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Ric Collett 4. ADDITIONS /DELETIONS TO THE AGENDA 5. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 6. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 6.1. Minutes of the Regular Board of Directors Meeting Held May 14, 2009 Recommendation: That the Board of Directors approve the minutes as presented. 6.2. Payments of Bills, Refunds, and Wire transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $860,076.00. 6.3. Progress Payment No. 12 for the Highland Reservoir Replacement Project Recommendation: That the Board of Directors approve Progress Payment No. 12 in the net amount of $169,975.99 to Schuler Engineering Corporation and 10% retention of $18,886.22 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 6.4. Progress Payment No. 24 for the Lakeview Reservoir Project Recommendation: That the Board of Directors approve Progress Payment No. 24 in the net amount of $226,472.13 to SSC Construction, Inc. and 5% retention of $11,919.58 deposited to City National Bank escrow account, for construction of the Lakeview Reservoir Project, Job No. 200704. 6.5. Financial Statements for Quarter Ending March 31, 2009 Recommendation: That the Board of Directors receive and file the financial statements for the quarter ending March 31, 2009 6.6. Investment Report for Quarter Ending March 31, 2009 Recommendation: That the Board of Directors receive and file the investment report for the quarter ending March 31, 2009. 6.7. Damage Claim Filed by Nelda E. Wamsley on Behalf of William C. Wamsley, 5088 Via Alvarado, Yorba Linda Recommendation: That the Board of Directors reject the claim. 7. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 7.1. Fairmont Site Improvement Agreement with Shapell Industries Recommendation: That the Board of Directors authorize the President and Secretary to execute the Facilities Finance, Design and Construction Agreement with Shapell Industries, Inc. for the Fairmont Site Improvements. 7.2. Frontage Fees for Grandview Sewer Extension Recommendation: That the Board of Directors authorize a one -time exemption to the District's Rules and Regulations for Sewer Service and establish an adjusted frontage fee charge for the Grandview Sewer Extension, in the amount of $15,767. 7.3. 2009 Consumer Confidence Report Recommendation: That the Board of Directors approve the 2009 Consumer Confidence Report for distribution to all District customers. 8. 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. 8.1. Wells Capital Investment Report for the 3rd Quarter of FY 2008/09 Recommendation: This is for information only. No action is required. 8.2. Status of Hidden Hills Reservoir Project Recommendation: This is for information only. No action is required. 9. REPORTS, INFORMATION ITEMS, AND COMMENTS 9.1. President's Report 9.2. Directors' Reports 9.3. General Manager's Report 9.4. Future Agenda Items and Staff Tasks 10. COMMITTEE REPORTS 10.1. Executive Administrative - Organizational Committee (Summerfield /Mills) Alternate: Collett Minutes of meeting held May 21, 4:00 p.m. Meeting scheduled for June 16, 4:00 p.m. 10.2. Finance - Accounting Committee (Beverage /Summerfield) Alternate: Mills Meeting scheduled for June 9, 4:00 p.m. 10.3. Personnel -Risk Management Committee (Armstrong /Collett) Alternate: Summerfield Meeting scheduled for June 8, 4:00 p.m. 10.4. Planning- Engineering- Operations Committee (Mills /Armstrong) Alternate: Beverage • Meeting scheduled for June 4, 4:00 p.m. 10.5. Public Information - Technology Committee (Collett /Beverage) Alternate: Armstrong Minutes of meeting held May 19, 9:00 a.m. Meeting scheduled for June 2, 4:00 p.m. has been cancelled. 10.6. MWDOC /OCWD Ad Hoc Committee (Mills /Collett) Alternate: Summerfield Minutes of meeting held May 26, 4:00 p.m. (to be provided at the meeting). Meeting scheduled for July 28, 4:00 p.m. 10.7. Revenues and Rates Ad Hoc Committee (Collet /Mills) Meeting to be scheduled. 10.8. City of Placentia Ad Hoc Committee (Beverage /Vecchiarelli) Meeting scheduled for June 10, 4:00 p.m. 10.9. Citizens Advisory Committee Meeting scheduled for May 19, 4:00 p.m. was cancelled. Meeting scheduled for Jun 1, 8:00 a.m. 11. INTERGOVERNMENTAL MEETINGS 11.1. Yorba Linda City Council, May 19 (Armstrong) 11.2. MWDOC Board, May 20 (Staff) 11.3. OCWD Board, May 27 (Staff) 11.4. Yorba Linda Planning Commission, May 27 (Collett) 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from May 29, 2009 thru June 30, 2009 Recommendation: Authorize Directors and such staff members of the District as approved by the General Manager to attend the listed meetings. 13. ADJOURNMENT 13.1. A Board of Directors workshop meeting will be held June 2, 2009, at 8:00 a.m. The next regular meeting of the Board of Directors will be held June 11, 2009 at 6:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non - exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy -two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http: / /www.ylwd.com /. Accommodations for the Disabled Any person may make a request for a disability - related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714 - 701 -3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885 -0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability - related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. AGENDA REPORT Meeting Date: May 28, 2009 ITEM NO. 6.1 Subject: Minutes of the Regular Board of Directors Meeting Held May 14, 2009 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Description: 051409 BOD - Minutes.doc 05/14/09 BOD Mtg iiunute MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING May 14, 2009 1. CALL TO ORDER The May 14, 2009 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 6:30 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage DIRECTORS ABSENT Ric Collett STAFF PRESENT Ken Vecchiarelli, General Mgr Pat Grady, Asst General Mgr Art Kidman, General Counsel Steve Conklin, Engineering Mgr Lee Cory, Operations Mgr Diane Cyganik, Finance Director Gina Knight, HR Manager Cindy Botts, Mgmt Analyst Annie Alexander, Exe Secretary 4. ADDITIONS /DELETIONS TO THE AGENDA Mr. Vecchiarelli requested to add additional claimants to Item No. 15.2. as there was a need to take immediate action and the need for action came to the attention of the District subsequent to the agenda being posted. On a motion by Director Armstrong, seconded by Director Mills, the Board voted 4 -0 to add the following claimants to Item No. 15.2. Claimant: The Hills at Yorba Linda Community Association Claimants: Einer G. and Rosalinda Lindholm Claimants: J. Darrell and Kerry Kamm Claimants: Jim and MaryAnn Buc Claimants: Doug and Diane Manista Claimants: Cecilia Ornelas Jerry and Barbara Sinner Patrick Diederichs Mark Schock Sterling Higgins Kenneth Tan Eric Griffith Dennis Walker Anne Pivovaroff Susan Gonzalez Lana Fisher Ricardo Ruvalcaba James Scherler Luis Montemayor Jerry Brakebill Robert Lane Neemish Patel Teresa Hulse Christine Sutton Laura Warmolts 5. PUBLIC COMMENTS President Summerfield opened the meeting to public comments. Mark Schock, resident and President of the Hidden Hills Homeowners Group, spoke regarding an e-mail he had sent to the General Manager and Board of Directors. Mr. Schock summarized his correspondence which listed the groups concerns regarding the fire and security vulnerability of the Hidden Hills Booster Pump Station and SCADA system. Mr. Schock requested the District work with the City of Yorba Linda and Metropolitan Water District to allow Hidden Hills residents to use the access road near the Santiago Reservoir as a second evacuation route in emergencies. Mr. Schock also requested the District increase its current water infrastructure codes to provide twice the amount of water pressure in wildland -urban interface areas. Julia Schultz, resident, spoke regarding the current water flow in her neighborhood. Ms. Shultz requested the District test hydrant flows when testing hydrant pressure on an annual basis. A resident expressed her concerns regarding the amount of water she would be able to conserve due to the large garden and landscape area she currently maintains. She also spoke about the lack of water pressure in her neighborhood during the Freeway Complex Fire. 6. PUBLIC HEARING 6.1. Ordinance No. 09 -01 Instituting Water Conservation Measures, Prohibition Against Water Waste and Water Shortage Supply Contingencies 6.2. a. President Opens Public Hearing President Summerfield opened the public hearing at 6:45 p.m. K b. Secretary Provides Proof of Public Hearing Notification, Correspondence and /or Petitions Mr. Vecchiarelli presented proof of the public hearing notification and correspondence received regarding the ordinance to the Board. Mr. Vecchiarelli stated that he had also received written comments from the Landscape Maintenance Assessment District Manager for the City of Yorba Linda which would be provided to the Board. C. Testimony Beginning with Report by General Manager Mr. Vecchiarelli provided a brief PowerPoint presentation outlining the purpose and major points of the ordinance. Mr. Kidman clarified that the ordinance is regarding water conservation and not water rationing and would not pose further hardship on residents currently observing water conservation practices. Mr. Vecchiarelli then responded to questions from the Board. d. Testimony from Public Carl Boznanski, resident and YLWD Citizens Advisory Committee Chair, spoke regarding the ordinance. Mr. Boznanski stated that the Committee had met with the General Manager to discuss the ordinance and voted unanimously to recommend adoption by the Board. Mr. Boznanski further stated that the Committee understood the need for the ordinance and believed that everyone should support the critical effort of conserving water. Julia Shultz, resident, requested the District provide information regarding underground drip irrigations systems to its customers. Ms. Schultz also requested that the District work with the City of Yorba Linda to fight against the assigned regional housing needs allocation. Michael Marion, resident, spoke regarding his concerns over enforcement of the ordinance. Another resident also expressed her concerns regarding enforcement of the ordinance. Mr. Vecchiarelli explained that a District staff member would need to personally witness any violations before issuing warnings or fines. Jim Horton, resident, expressed his concerns regarding using a rotor sprinkler system and being able to keep within the 15 minute time limit for watering. Mr. Vecchiarelli and Ms. Botts explained that the 15 minute time limit would not apply to systems that met the specified efficiency standards. K3 A resident whose pool was emptied as a result of the Freeway Complex Fire asked if he would be able to refill his pool at this time. Mr. Vecchiarelli explained that the restrictions on filling pools would not be effect unless the water supply shortage level was increased to Stage 3. e. President Closes Public Hearing President Summerfield closed the public hearing at 7:38 p.m. f. Discussion Director Mills made a motion to adopt Ordinance No. 09 -01, seconded by Director Beverage. Director Beverage suggested that a charge for over usage be included in the ordinance. Director Mills suggested that the ordinance be adopted as is and that staff look into including a charge for over usage in the future. The Board then voted 4 -0 on a Roll Call vote to adopt Ordinance No. 09 -01 Instituting Water Conservation Measures, Prohibition Against Water Waste and Water Shortage Supply Contingencies. 7. CONSENT CALENDAR On a motion by Director Mills, seconded by Director Armstrong, the Board voted 4 -0 to approve the Consent Calendar. 7.1. Minutes of the Regular Board of Directors Meeting held April 9, 2009 Recommendation. Approve the minutes as presented. 7.2. Payment of Bills, Refunds, and Wire Transfers Recommendation. Ratify disbursements in the amount of $660,581.13. 7.3. Payment of Bills, Refunds, and Wire Transfers Recommendation. Ratify and authorize disbursements in the amount of $1,651,874.74. 7.4. Progress Payment No. 23 for the Lakeview Reservoir Project Recommendation. Approve Progress Payment No. 23 in the net amount of $269,745.85 to SSC Construction, Inc. and 5% retention of $14,197.15 deposited to City National Bank escrow account for construction of the Lakeview Reservoir Project, Job No. 200704. 7.5. Terms and Conditions for Sewer Service with Larry and Tracey Pratt Recommendation. Approve the Terms and Conditions for Sewer Service with Larry and Tracey Pratt for 5951 Sandra Drive, Yorba Linda, Job No. 200907. CI E:3 0 10. ACTION CALENDAR 8.1. Professional Service Agreement Amendment for Lakeview Sewer Lift Station Rehabilitation Mr. Conklin introduced the item and explained that the lift station needed two of its submersible pumps and control systems replaced. On a motion by Director Armstrong, seconded by Director Beverage, the Board voted 4 -0 to authorize Amendment No. 1 to the Professional Services Agreement with Tetra Tech Consultants in the amount of $19,960 for design, bidding and construction phase services for the Lakeview Sewer Lift Station Project. 8.2. Award of Construction Contract for San Antonio Pressure Reducing Station Mr. Conklin reported that the District received 11 bids from contractors for construction of the pressure reducing station. The lowest bid was received from Paulus Engineering for $236,250. On a motion by Director Beverage, seconded by Director Armstrong, the Board voted 4 -0 to award the Contract for Construction of the San Antonio Pressure Reducing Station Upgrade Project to Paulus Engineering, Inc. for $236,250. DISCUSSION ITEMS 9.1. Status of Hidden Hills Reservoir Project Mr. Conklin reported that construction had begun on the Hidden Hills Reservoir. The contractors have started clearing and grading the site in preparation for the excavation portion of the project. In preparation for the construction, Mr. Conklin provided a presentation to the Yorba Linda City Council regarding the haul route for soil removal. A special notice regarding the haul route was sent to all residents in the area as well and to the St. Francis of Assisi Catholic School. 9.2. System Improvements Following Freeway Complex Fire Mr. Vecchiarelli explained that this item had been added to the agenda in response to a request by Mr. Schock. Mr. Cory provided a brief PowerPoint presentation outlining staff efforts to harden the District's water system against future disastrous events and to improve reliability during planned and unplanned water supply interruptions. REPORTS, INFORMATION ITEMS AND COMMENTS 10.1. President's Report No report was given. President Summerfield commended staff on the new agenda format. 10.2. Directors' Reports Director Beverage commented on the status of the Colorado River. 61 Director Mills commented on the fire in Santa Barbara. Director Armstrong commented on a claim received from a resident. 10.3. General Manager's Report Mr. Vecchiarelli reported that the District had experienced an earthquake on April 23rd just before 5:00 p.m. Staff conducted an assessment of the water distribution system shortly thereafter and no leaks were discovered. Mr. Vecchiarelli further reported that he had attended a meeting of the Orange County Fire Authority on April 23rd where an overview of their After Action Report for the Freeway Complex Fire was presented. Mr. Vecchiarelli also met with representatives from the City of Yorba Linda Public Works and Parks and Recreation Departments on May 8th to discuss the conservation ordinance. In addition, Mr. Vecchiarelli attended a meeting of the East Lake Village Community Association on May 12th regarding the zone reconfiguration project in their area. 10.4. General Counsel's Report No report was given. 10.5. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Executive - Administrative - Organizational Committee (Summerfield /Mills) Alternate: Collett Minutes of the meeting held April 21 were provided in the agenda packet. Directors Summerfield and Mills attended. Items discussed during the meeting were as follows: Board Strategic Planning Workshop — Draft Report; Board Budget Workshop; recommendation for becoming signatory of the CUWCC; changes to Board packets; reports on legislative and grant activities; General Counsel's monthly summary billing report; and opportunities for expanding the District's water resources portfolio. Meeting scheduled for May 21, 4:00 p.m. 11.2. Finance - Accounting Committee (Beverage / Summerfield) Alternate: Mills Minutes of the meeting held April 14 were provided in the agenda packet. Directors Beverage and Summerfield attended. Items discussed during the meeting were as follows: Monthly Investment Report and Financial Statements for February 2009; Monthly Portfolio Report for March 2009; Operating and Non - Operating Expense Budget; and update on Actuarial RFP's. Minutes of the meeting held May 12 were provided at the meeting. Directors Beverage and Summerfield attended. Items discussed during the meeting were as follows: Monthly Financial Statements and C.1 Investment Report for March 2009; revised YTD /Monthly Financial Reports; Monthly Portfolio Report for April 2009; and comparison reports for depreciation and overhead expenses and water operating pass - through costs from the last rate increase and current projections. Meeting scheduled for June 9, 4:00 p.m. 11.3. Personnel -Risk Management Committee (Armstrong /Collett) Alternate. Summerfield Minutes of the meeting held May 11 were provided at the meeting. Directors Armstrong and Collett attended. Items discussed during the meeting were as follows: Damage Claim submitted by Mr. William C. Wamsley; Proposed Authorized Positions for FY 2009/2010; status of recruitments and risk management activities; and scheduling a Budget Workshop. Meeting scheduled for June 8, 4:00 p.m. 11.4. Planning- Engineering- Operations Committee (Mills /Armstrong) Alternate. Beverage Minutes of the meeting held May 7 were provided in the agenda packet. Directors Armstrong and Beverage attended. Items discussed during the meeting were as follows: Fairmont Site Improvement Agreement with Shapell Industries; Professional Services Agreement Amendment for Lakeview Sewer Lift Station Rehabilitation; Frontage Fees for Grandview Sewer Extension; Award of Construction Contract for San Antonio Pressure Reducing Station; Monthly Groundwater Production, Purchased Water, and Preventative Maintenance Program reports; Monthly MWDOC Managers Meeting and OC Groundwater Producers Meeting summary reports; status of capital projects in progress; and potential use of tops of reservoirs as space for community sports and other activities. Meeting scheduled for June 4, 4:00 p.m. 11.5. Public Information - Technology Committee (Collett /Beverage) Alternate. Armstrong Minutes of the meeting held May 5 were provided in the agenda packet. Directors Collett and Beverage attended. Items discussed during the meeting were as follows: customer online payments service; website updates and links; Spring 2009 Customer Newsletter; and OC Children's Water Education Festival and OC Girl Scouts public events. Meeting scheduled for June 2, 4:00 p.m. 11.6. MWDOC /OCWD Ad Hoc Committee (Mills /Collett) Alternate. Summerfield Meeting scheduled for May 26, 4:00 p.m. rA 11.7. Revenues and Rates Ad Hoc Committee (Collett /Mills) Minutes of the meeting held April 28 were provided in the agenda packet. Directors Collett and Mills attended. Items discussed during the meeting were as follows: actual and forecast revenues for FY 2008/2009 and proposed budget revenues for FY 2009/2010; rate strategies, proposed pass through rate increase, budget based and tiered rate alternatives; and status of Citizens Advisory Committee activities. Meeting to be scheduled. 11.8. City of Placentia Ad Hoc Committee (Beverage /Vecchiarelli) Meeting scheduled for June 10, 4:00 p.m. 11.9. Citizens Advisory Committee Minutes of the meeting held April 21 were provided in the agenda packet. Items discussed during the meeting were as follows: OC Water Summit on May 15, 2009; conservation ordinance implementation plan; FY 2009/2010 budget and variable expenses; water rate; and nomination of Committee officers. Minutes of the meeting held May 4 were provided in the agenda packet. Items discussed during the meeting were as follows: water conservation ordinance and supply shortage contingencies; FY 2009/2010 revenues; water rate options; and FY 2009/2014 Capital Improvement Plan and financing of future infrastructure needs. Meeting scheduled for May 19, 4:00 p.m. 12. INTERGOVERNMENTAL MEETINGS 12.1. MWDOC Board, April 15 (Staff) Mr. Vecchiarelli reported that MWDOC's Water Supply Allocation Plan had been adopted and implemented at the Regional Shortage Level 2. 12.2. OCWD Board, April 15 (Staff) Mr. Vecchiarelli reported that the Replenishment Assessment Rate ($249 per acre foot), Basin Production Percentage (62 %) and Basin Equity Assessment Rate ($501 per acre foot) for FY 2009 -10 had been adopted. The surcharge for production in excess of 64% is $2,400 per acre foot. 12.3. Yorba Linda Planning Commission, April 15 (Collett) There was no report as Director Collett was absent. 12.4. Yorba Linda City Council, April 21 (Armstrong) Director Armstrong did not attend. E:3 12.5. Yorba Linda Planning Commission, April 29 ( Summerfield) Director Summerfield attended and commented on two conditional use permits and efforts of the Fire Recovery Facilitation Team which were discussed during the meeting. 12.6. Yorba Linda City Council, May 5 (Mills) Director Mills attended and commended Mr. Conklin for his presentation regarding the San Antonio Water Main Zone Reconfiguration and Hidden Hills Reservoir Projects. 12.7. MWDOC /MWD Workshop, May 6 (Staff) Staff did not attend. 12.8. OCWD Board, May 6, (Staff) Staff did not attend. 12.9. Yorba Linda Planning Commission, May 13 ( Summerfield) Director Summerfield attended and made note of some of the items on the agenda including a presentation by Galvin Preservation Associates on the status of their Historic Resources Survey. 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 15, 2009 thru June 30, 2009 The Board reviewed the listed meetings with no changes. 14. CONFERENCES AND SEMINARS 14.1. ACWA/JPIA Spring Conference —May 18-19,2009 On a motion by Director Armstrong, seconded by Director Beverage, the Board voted 4 -0 to authorize Director Mills to attend the ACWA/JPIA Spring Conference. State Legislative Welcome Reception — June 4, 2009 On a motion by Director Beverage, seconded by Director Armstrong, the Board voted 4 -0 to authorize Director Mills to attend the State Legislative Welcome Reception. 15. CLOSED SESSION On a motion by Director Mills, seconded by Director Beverage, the Board adjourned to Closed Session at 8.35 p.m. All Directors in attendance were present. Also present were Messrs. Vecchiarelli, Grady and Kreisler, and Ms. Knight. 10.1 15.1. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Ken Vecchiarelli Pat Grady Gina Knight Richard Kreisler Employee Organization: Yorba Linda Water District Employees Assn Mr. Kreisler left the Closed Session following discussion of Item No. 15.1. Mr. Kidman, Ms. Laurie Park and Ms. Linda Bauermeister then joined the Closed Session for discussion of Item Nos. 15.2. and 15.3. 15.2. Conference with Legal Counsel — Liability Pursuant to Section 54956.95 of the California Government Code Claimants: Paul and Gillian Johnson, Robert Record, Ameet Sambray, and Dennis Dunn Claimant: David and Alecia Weiss Claimant: The Hills at Yorba Linda Community Association Claimants: Einer G. and Rosalinda Lindholm Claimants: J. Darrell and Kerry Kamm Claimants: Jim and MaryAnn Buc Claimants: Doug and Diane Manista Claimants: Cecilia Ornelas Jerry and Barbara Sinner Patrick Diederichs Mark Schock Sterling Higgins Kenneth Tan Eric Griffith Dennis Walker Anne Pivovaroff Susan Gonzalez Lana Fisher Ricardo Ruvalcaba James Scherler Luis Montemayor Jerry Brakebill Robert Lane Neemish Patel Teresa Hulse Christine Sutton Laura Warmolts Agency Claimed Against: Yorba Linda Water District 0] 15.3. Conference with Legal Counsel — Anticipated Litigation Pursuant to Subdivision (b)(1)(b) of Section 54956.9 of the California Government Code Number of Potential Cases: Unknown The exposure to litigation arises from assertions of District responsibility for property and related losses incurred during the "Freeway Complex" firestorm of November 15 and 16, 2008. The Board reconvened in Open Session at 9:36 p.m. President Summerfield reported that during Closed Session, Director Mills made a motion to reject and refer the claims submitted by the claimants listed in Item No. 15.2. to ACWA/JPIA, with the exception of the claim submitted by J. Darrel and Kerry Kamm. This motion was seconded by Director Beverage and approved by the Board 4 -0. Staff was instructed to return the claim submitted by J. Darrell and Kerry Kamm as insufficient. No action was taken during Closed Session for Item Nos. 15.1. and 15.3. that was required to be reported under the Brown Act. 16. ADJOURNMENT 16.1. On a motion by Director Armstrong, seconded by Director Summerfield, the meeting was adjourned at 9:37 p.m. The next regular meeting of the Board of Directors will be held May 28, 2009 at 8:30 a.m. 11 Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT May 28, 2009 Board of Directors Ken Vecchiarelli, General Manager Budgeted: Total Budget: Cost Estimate: Funding Source: Account No: Job No: Diane Cyganik, Finance Director Dept: Reviewed by Legal Maria Trujillo, Accounting CEQA Compliance: Assistant I Payments of Bills, Refunds, and Wire transfers ITEM NO. 6.2 Yes N/A $860,076.00 All Funds N/A N/A Finance N/A N/A Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors' approval. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $860,076.00. DISCUSSION: The major items and wire transfers on this disbursement list are as follows: A wire of $80,143.93 to ACWA -HBA for June 2009 health premium; a wire of $261.96 to ACWA -EAP for June 2009 EAP; a wire of $4,803.40 to Parsons for Job 200704 April 2009 services; a wire of $11,899.58 to City National Bank for Job 200704 April 2009 retention; a check of $53,642.97 to Cummins Cal Pacific for an engine rebuild on Highland Booster #5; and, a check of $226,472.13 to SSC Construction for Job 200704 April 2009 progress payment. The balance of $252,997.00 is routine invoices. ADP is now issuing our payroll checks, with the exception of the third party checks, listed below. In summary, the check register total is $630,220.97; payroll No. 10 total is $229,855.03; and, the disbursements of this agenda report are $860,076.00. A summary of the checks is as follows: Payables: Void Check Manual Checks Computer Checks Payroll #10: Check No. 51126 Check Nos. 51542 Check Nos. 51544 51543 51649 Manual Checks Check No. 4311 - 4315 The disbursement total for the current period is $860,076.00, distributed as follows: Water $792,360.74 Sewer $41,531.93 ID #1 $0.00 ID #2 $26,183.33 TOTAL $860,076.00 PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi - monthly. ATTACHMENTS: Description: Type: 09 -CS 528.doc Cap sheet Backup Material May28 check list.pdf Chack list Backup Material CHECK NUMBERS 51126 51542 TO 51649 WIRES: W -52709 ACWA -HBA W- 52709A ACWA -EAP W -52809 Parsons W- 52809A City National Bank TOTAL OF CHECKS AND WIRES: PAYROLL NO. 10: CHECK NUMBERS: May 28, 2009 $ 0.00 $ 533,112.10 $ 80,143.93 $ 261.96 $ 4,803.40 $ 11,899.58 $ 97,108.87 $ 630,220.97 4311 TO 4315 $ 229,855.03 -------------------------------------------------------------------------------------------------------------------- TOTAL: $ 860,076.00 ------------------------------------------------------------------ ------------------------------------------------------------------ APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MAY 28, 2009 TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS AS FOLLOWS: WATER $ 792,360.74 SEWER $ 41,531.93 I D# 1 $ 0.00 I D# 2 $ 26,183.33 TOTAL: $ 860,076.00 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 05 -15 -09 THRU 05 -28 -09 Check. Check... Posting. Vendor Name ................... Check..... No Date Date Amount 51547 05 -28 -09 05 -28 -09 1- 800- CONFERENCE(R) 27.55 51548 05 -28 -09 05 -28 -09 A -1 FENCE 1,993.00 51549 05 -28 -09 05 -28 -09 ABIGAIL ABBOTT STAFFING SVC 7,550.65 W52709 05 -27 -09 05 -27 -09 ACWA -HBA 80,143.93 52709A 05 -27 -09 05 -27 -09 ACWA -FBA 261.96 51550 05 -28 -09 05 -28 -09 ADVANCED INFRASTRUCTURE 313.20 51.551 05 -28 -09 05 -28 -09 AMTEL YELLOW WAGES 214.00 51552 05- -28 -09 05 -28 -09 ANAHEIM WHEEL & TIRE 375.00 51553 05 -28 -09 05 -28 -09 APPLIED GEODETICS INC. 7,923.60 51554 05 -28 -09 05- 28 --09 ARROW HARDWARE 504.57 51.555 05 -28 -09 05 -28 -09 AT & T - CALNET2 3,266.19 51556 05 -28 -09 05 -28 -09 AT &T 45.09 51557 05 -28 -09 05 -28 -09 AW DIRECT INC. 314.79 51558 05 -28 -09 05- 28--09 AWWA - DUES 85.00 51544 05 -28 -09 05 -28 -09 AZIM SHARIAT 35.90 51559 05 -28 -09 05 -28 -09 B & S [3RAPHICS, INC. 59.81 51560 05 -28 -09 05 -28 -09 BELL PIPE & SUPPLY 101.05 51561 05 -28 -09 05 -28 -09 BOB PETERS FIRE PROTECTION 350.00 51562 05 -28 -09 05 -28 -09 BOILER AND STEAM PARTS INC. 200.20 51563 05 -28 -09 05 -28 -09 C. WELLS PIPELINE 114.19 51564 05 -28 -09 05 -28 -09 CADET UNIFORM SERVICE 854.46 51565 05 -28 -09 05 -28 -09 CALIF WATER ENVIRON ASSN(CWEA) 80.00 51566 05 -28 -09 05 -28 -09 CAROLLO ENGINEERS 13,375.00 51567 05 -28 -09 05 -28 -09 CDM, INC. 5,549.28 51568 05 -28 -09 05 -28 -09 CDW -G GOVERNMENT, INC 9.99 51569 05 -28 -09 05 -28 -09 CEIL KIRBY MAPS 314.88 52809A 05_28 -09 05 -28 -09 C1.TY NATIONAL BANK 11,899.58 51570 05 -28 -09 05- 28--09 CITY OF ANAHEIM 12,112.33 51571 05- -28 -09 05 -28 -09 CITY OF PLACENTIA 4,304.54 51572 05 -28 -09 05 -28 -09 CLINICAL LAB. OF SAN BERN. 1,925.00 51573 05- 28--09 05- 28--09 CONSOLIDATED REPROGRAPHICS 1,009.85 51574 05 -28 -09 05 -28 -09 CULLIGAN 1,775.65 51575 05 -28 -09 05 -28 -09 CUMMINS CAL PACIFIC, LLC 53,542.97 51576 05 -28 -09 OS -28 -09 CYNTHIA 20TTS 443.30 51577 05 -28 -09 05 -28 -09 D.R. CRISKE TRUCKING INC 3,411.22 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 05-15-09 THRU 05-28-09 Check. Check... Posting. Vendor Name ................... Check..... No Date Date Amount 51578 05-28-09 05-28-09 DAN COPP CRUSHING CORP. 261-00 51579 05 -28-09 05-28-09 DAPPER TIRE CO. INC. 989.44 51580 05 -28-09 05-28-09 DATALOK ORANGE COUNTY 268.42 51581 05 -28-09 05-28-09 DATANET SOLUTIONS INC. 19,273.75 51582 05 -29-09 05-28-09 DELL MARKETING L.P. 8,140.54 51583 05-28-09 05-28-09 DELTA DENTAL - PMI 296.32 51584 05 -28-09 05-28-09 DIANE DALTON 254.94 51585 05-28-09 05-28-09 DME INCORPORATED 77.61 5I545 05-28-09 05 -28-09 DONALD COX 63.45 51586 05-28-09 05-28-09 ElSEL ENTERPRISES, INC. 161.00 51587 05-28-09 05-28-09 FAIRWAY FORD SALES, INC. 46.50 51588 05-28-09 05-28-09 FEDERAL EXPRESS 245.72 51589 05 -28-09 05-28-09 FRANKLIN COVEY 52-15 51590 05-28-09 05-28-09 FRY'S ELECTRONICS 158.66 51591 05 -28-09 05-28-09 FULLERTON PAINT & FLOORING 1,323.98 51592 05-28-09 05-28-09 GENERAL PUMP CO., INC. 15,652.11 51593 05-28-09 05-28-09 HARRINGTON INDUSTRIAL 590.33 51594 05-28-09 05-28-09 HOTSY OF SO CALIFORNIA 77.59 51595 05-28-09 05-28-09 HSBC BUSINESS SOLUTIONS 413.77 51596 05-28-09 05-28-09 INFOSEND 8,772.61 51597 05-28-09 05-28-09 JOHN CESAREO 355.43 51598 05-28-09 05-28-09 KATRINA BROWN 1,176.21 51599 05-28-09 05 -28-09 KB DESIGN 1,141.88 51600 05-28-09 05-28-09 KENNY GRAFF 80.00 51546 05-28-09 05-28-09 KEY ASSET SOLUTIONS 26.26 51601 05-28-09 05-28-09 LAUTZENHISERIS STATIONERY INC. 215.30 51602 05-28-09 05-28-09 LEE CORY 396-00 51603 05-28-09 05-28-09 LEIGHTON CONSULTING, INC. 11,174.60 51604 05-28-09 05-28-09 LINCOLN NATIONAL LIFE 1,866.78 51605 05-28-09 05-28-09 LPR 334.04 51606 05-28-09 05-28-09 MC FADDEN-DALE HARDWARE 1,777.33 51607 05-28-09 05-28-09 McCCRMICK,KIDMAN & BEHRENS LLP 27,952.90 51608 05-28-09 05-28-09 MRASUREMENT CONTROL SYSTEMS 145.36 51609 05 -28-09 05-28-09 MINUTEMAN PRESS 574.94 51610 05-28-09 05-28-09 MISCO 1,C)OD.54 Yarba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 05 -15 -09 THRU 05 -28 -09 Check. Check... Pasting. Vendor Name ................... Check..... No Date Date Amount. 51611 05 -28 -09 05 -28 -09 MUNICIPAL WATER DISTRICT 126.00 51612 05 -28 -09 05 -28 -09 NEXTEL OF CALIFORNIA 1,749.73 51126 03- 12 -09 05 -15 -09 NWRI /OCWD CHILDREN WATER - 500.00 51542 05 -15 -09 05 -15 -09 NWRI /OCWD CHILDREN WATER 500.00 5161.3 05 -28 -09 05 -28 -09 OCCU -MED, LTD. 50.00 51614 05- -28 -09 05 -28 -09 OFFICE SOLUTIONS 362.55 51615 05 -28 -09 05 -28 -09 OMNI WESTERN INC 108.10 51616 05° -28 -09 05 -2809 ORANGE COUNTY - I W M D 731.40 51617 05 -28 -09 05 -28 -09 ORANGE COUNTY REGISTER 325.68 51618 05 -28 -09 05 -28 -09 ORVAC ELECTRONICS 137.78 W52809 05 -28 -09 05 -28 -09 PARSONS ENGINEERING SCIENCE 4,803.40 51619 05-28-09 05 -28 -09 PEGGY McCLURE 210.00 51620 05- 28-09 05 -28 -09 PETE'S ROAD SERVICE INC 70.00 51621 05 -28 -09 05- -28 -09 PLACENTIA DISPOSAL 499.36 51543 05 -15 -09 05 -15 -09 PRIORITY MAILING SYSTEMS 342.57 51622 05 -28 -09 05 -2809 PSOMAS % ASSOCIATES 2,056.65 51623 05- -28 -09 05 -28 -09 R J SERVICES, INC 698.00 51624 05-28 -09 05- -28 --09 RICHARD GANGLOFF III 303.72 51625 05- 28- -09 05 -28 -09 RICK WALKEMEYER 150.00 51626 05 -28 -09 05- -28 -09 SACRAMENTO ADVOCATES 3,000.00 51627 05 -28 -09 05 -28 -09 SELMAN CHEVROLET COMPANY 502.61 51628 05 -28 -09 05 -28 -09 SEVERN TRENT WATER 1,066.31 51629 05 -28 -09 05 -28 -09 SHRED -IT LOS ANGELES 65.00 51630 05 -28 -09 05 -28 -09 SOLARWINDS INC. 495.00 51631 05 -28 -09 05 -28 -09 SOUTHERN CALIF EDISON CO. 219.85 51632 05 -28 -09 05 -28 -09 SOUTHERN CALIF EDISON.-PLANNING 5,830.42 51633 05 -28 -09 05 -28 -09 SOUTHERN CALIF GAS CO. 16,044.07 51634 05 -28 -09 05 -28 -09 SPARLING INSTRUMENTS LLC. 518.90 51635 05 -28 -09 05 -28 -09 SSC CONSTRUCTION, INC 226,472.13 51636 05 -28 -09 05--28 -fi9 ST.JOSEPH HERITAGE HEALTHCARE 145.00 51637 05 -28 -09 05 -28 -09 STACY BAVOL /PETTY CASH 201.36 51638 05 -28 -09 05- 28--09 STAPLES BUSINESS ADVANTAGE 1,164.11 51639 05 -28 -09 05 -28 -09 SUNSTATE EQUIPMENT CO 347.19 51640 0S -28 -09 05 -28 -09 'TETRA. TECH, ISG #1 24,325.16 51641 05 -28 -09 05 -28 -09 THE BEE MAN 225.00 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 05 -15 -09 THRU 05 -28 -09 Check. Chock... Posting. Vendor Name .................. No Date Date 51642 05 -28 -09 51643 05 -28 -09 51644 05 -28 -09 51645 05 -28 -09 51646 05 -28.09 51647 05- 28 - -09 51648 05 -28 -09 51649 05- -28 -09 05 -28 -09 05 -28 -09 05 -28 -09 05 -28 -09 05 -28 -09 05 -28 -09 05 -28 -09 05 -28 -09 TIME WARNER CABLE UNDERGROUND SERVICE ALERT UNITED INDUSTRIES USA BLUE BOOK VERIZON WIRELESS WALTERS WHOLESALE ELECTRIC CO WELLS SUPPLY CO XEROX CORPORATION Check..... Amount 187.38 172.50 1,582.91 47.93 121.86 2,521.56 10,620.11 1,094.48 630,220.97 AGENDA REPORT Meeting Date: May 28, 2009 To: Board of Directors From: Ken Vecchiarelli, General Manager Presented By: Steve Conklin, Engineering Manager Prepared By: Leon De Los Reyes, Water Quality Engineer Budgeted: Total Budget: Cost Estimate: Funding Source: Account No: Job No: Dept: Reviewed by Legal: CEQA Compliance: ITEM NO. 6.3 Yes $11.2M $11.2M Water Revenue Bond 101 -2700 J- 200309 Engineering No MND Subject: Progress Payment No. 12 for the Highland Reservoir Replacement Project SUMMARY: The Board of Directors awarded a contract to Schuler Engineering for construction of the Highland Reservoir Replacement Project on April 10, 2008 and approved a project construction budget of $11.2M on May 15, 2008. Submitted for consideration is construction Progress Payment No. 12. STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 12 in the net amount of $169,975.99 to Schuler Engineering Corporation and 10% retention of $18,886.22 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. DISCUSSION: In accordance with the contract documents, Schuler Engineering Corporation submitted a request for Progress Payment No. 12 for the period ending April 30, 2009. This progress pay request includes small percentage payments for submittals, project related office expenses, surface water pollution prevention efforts, 60% for earthwork and grading of the reservoir foundation and slopes, and about 34% for the new reservoir drain and overflow piping. Grading for the new reservoir foundation is now complete. The status of the construction contract with Schuler Engineering is as follows: • Original contract amount was $9,049,346 and 730 calendar days starting June 2, 2008. • Authorized change orders to date total $335,575.44 (3.71 % of the original contract amount) and 39 calendar days (5.34% of original contract calendar days). • The revised construction contract amount and contract calendar days are $9,384,921.44, and 769 days respectively. • If approved, Progress Payment No. 12 is $188,862.21 (2.01 % of the revised contract amount) less 10% retention of $18,886.22 for a net payment of $169,975.99. • If approved, total progress payments to date including retentions are $4,591,088.64 (48.9% of the revised contract amount). • As of April 30, 2009, 333 calendar days were used (43.3% of the revised contract calendar days). Staff and Carollo Engineers, the District's construction progress payment request and recommend payment. is attached for your information. PRIOR RELEVANT BOARD ACTION(S): management consultant, reviewed the A copy of Progress Payment Request No. 12 The Board of Directors awarded a construction contract to Schuler Engineering on April 10, 2008 in the amount of $9,049,346 for construction of the project. On May 15, 2008, the Board approved execution of a Professional Service Agreement with Carollo Engineers in the amount of $605,856 for engineering support services, construction management and backup inspection services; a Professional Service Agreement with Leighton Consulting Engineers in the amount of $86,200 for geotechnical services, soils, concrete and materials testing; a Professional Service Agreement with BonTerra Consulting in the amount of $22,251 for environmental compliance services; and approved the construction budget in the amount of $11,200,000 for construction of the Highland Reservoir Replacement Project. On April 9, 2009, the Board approved an amendment to BonTerra's Professional Services Agreement in the amount of $15,700 for additional environmental compliance services. The Board has approved 11 progress payments and 2 change orders to date, the most recent of which were approved on April 9, 2009 and March 12, 2009, respectively. ATTACHMENTS: Name: Description: Type: PP# 12.pdf Progress Pay Request No. 12 Backup Material YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Fl�land Reservoir PROGRESS PAY REQUEST NO. 12_ LOCATION Yorba Linda PROJECT NO. J- PAGE 1 OF 1 PAGES CONTRACTOR Schuler Engineering DATE April 30,2009 ORIGINAL CONTRACT AMOUNT: $ 9,049,346.00 AUTHORIZED CHANGE. ORDERS. $ 335,575.44 REVISED CONTRACT AMOUNT: $ 9,384,921.44 PROGRESS PAY ESTIMATE FOR PERIOD April 1,2009 TO Aril 30, 2009 CALENDAR DAYS 769 PREVIOUS THIS MONTH TO DATE VALUE OF WORK COMPLETED $ 4,078,604.24 $ 188,862.21 $ 4,267466.45 CHANGE ORDER WORK COMPLETED $ 323 622.19 $ - $ 323,622.19 TOTAL VALUE OF WORK COMPLETED $ 4,402,226.43 $ 188,862.21 $ 4,591,088.64 LESS RETENTION 10% $ 459,108.87 LESS OTHER DEDUCTIONS AMOUNT DUE THIS ESTIMATE $ 4,131,979.77 LESS AMOUNT PREVIOUSLY PAID $ 3,962,003.78 BALANCE DUE THIS ESTIMATE $ 169,975.99 NOTICE TO PROCEED COMPLETION TIME APPROVED TIME EXTENSIONS TOTAL CONTRACT TIME TIME EXPENDED TO DATE TIME REMAINING June 2,2008 730 CALENDAR DAYS 39 CALENDAR DAYS 769 CALENDAR DAYS 333 CALENDAR DAYS 436 CALENDAR DAYS X. REQUESTED BY: f DATE: SCHULER ENGINEERING - CONTRACTOR Chas Wick jAPPROVED BY: DATE: CAROLLO- OWNER'S- REPRESENTATIVE Brian Wilson APPROVED BY: DATE: YLWD- OWNER Steve Conklin Meeting Date: To: From: Presented By: Prepared By: Subject SUMMARY: AGENDA REPORT May 28, 2009 Board of Directors Ken Vecchiarelli, General Manager Steve Conklin, Engineering Manager Budgeted: Total Budget: Cost Estimate: Funding Source: Account No: Job No: Dept: Reviewed by Legal: Joe Polimino, Project Engineer CEQA Compliance: ITEM NO. 6.4 Yes 11.5M 11.5M Developer Funded 101 -2700 200704 Engineering N/A MND Progress Payment No. 24 for the Lakeview Reservoir Project On January 25, 2007, the District Board of Directors authorized the execution of an agreement with SSC Construction, Inc. (SSC) for construction of an 8- million gallon underground concrete reservoir, piping and appurtenances. The project also includes demolition of the existing Bastanchury Booster Pump Station and Reservoir (two steel storage tanks). The site is located north of Bastanchury Road off the new Lakeview Avenue extension, north of the Hover Development and south of Vista Del Verde's Village 4. When completed, the project will increase operational, fire and emergency storage capacity, retain better water quality through improved circulation and improve reliability of the water system. STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 24 in the net amount of $226,472.13 to SSC Construction, Inc. and 5% retention of $11,919.58 deposited to City National Bank escrow account, for construction of the Lakeview Reservoir Project, Job No. 200704. DISCUSSION: In accordance with the contract documents, SSC submitted a request for Progress Payment No. 24, in the amount of $238,391.71 for completed work through April 30, 2009. During this period, SSC completed fine grading of the site, paving the access road and placement of concrete "v" ditches. The contractor also continued work on the cathodic protection system. The status of the construction contract with SSC Construction, Inc. is as follows: • The current contract is $11,006,911.61 and 663 calendar days starting June 18, 2007. • If approved, Progress Payment No. 24 is $238,391.71 (2.2% of the total contract amount), less 5% retention of $11,919.58 for a net payment of $226,472.13. • Total payments to date including retention are $10,946,243.08 (99.4% of the total contract amount). . As of April 30, 2009, 683 calendar days were used (103% of the contract time). As noted above, the project has exceeded the time allowed for completion of construction. This is due to the need for the contractor to finalize the construction "punchlist" items, which will be complete by May 31, 2009. The District has been able to use the new reservoir for water storage and delivery since September 16, 2008, such that the delay in completion has not impacted the District. Staff and Butier, the District's construction manager for the project, have reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 24 is attached for your reference. ATTACHMENTS: Description: Type: PPR_24 SSC_Lakeview.pdf Progress Pay Report 24 Backup Material i 1 YO►RBA LINDA WATER DISTRICT PROGRESS PAY REPORT € PROJECT Lakeview Reservoir Project PROGRESS PAY REQUEST NO. 24 LOCATION Yorba Linda, CA PROJECT NO. 200704 PAGE 1 OF 1 PAGES CONTRACTOR SSC Construction, Inc. DATE 4130109 )RIGINAL CONTRACT AMOUNT: $ 10,489,500.00 WTHORIZED CHANGE ORDERS: 517,411.61 tEVISED CONTRACT AMOUNT: 11,006,911.61 (PROGRESS PAY ESTIMATE FOR PERIOD VALUE OF WORK COMPLETED CHANGE ORDER WORK COMPLETED TOTAL VALUE OF WORK COMPLETED LESS RETENTION 5% LESS OTHER DEDUC71ONS NET EARNED TO DATE LESS AMOUNT PREVIOUSLY PAID BALANCE DUE THIS ESTIMATE NOTICE TO PROCEED COMPLETION TIME APPROVED TIME EXTENSIONS TOTAL CONTRACT TIME TIME EXPENDED TO DATE TIME REMAINING REQUESTED W APPROVED BY: April 1, 2009 TO PREVIOUS.. THIS MONTH $ 10,273,570.00 $ 167,07; $ 434, 781.37 $ 71, 311 S 10.707.851.37 $ 238.39' 50% of Electronic Wire Fees June 18, 2007 487 CALENDAR DAYS 176e CALENDAR DAYS 663 CALENDAR DAYS 683 CALENDAR DAYS 0 CALENDAR DAYS 130, 2009 TO DATE 71 1 $ 10, $ 150.00 $ 10,398,780.93 $ 10,172.308.80 DATE: S� Q s DATE: APPROVED BY: DATE: Kenneth R. Verchlareffl, General Manager, YLWD 1:31 Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT May 28, 2009 Board of Directors Ken Vecchiarelli, General Manager Budgeted Funding Source: Diane Cyganik, Finance Director Dept: Sandi Van Etten, Senior Accountant ITEM NO. 6.5 N/A N/A Finance Reviewed by Legal: N/A CEQA Compliance: N/A Financial Statements for Quarter Ending March 31, 2009 Both the water and sewer funds had operating losses of $3,187,623 and $238,796 respectively for the quarter ending March 31, 2009. STAFF RECOMMENDATION: That the Board of Directors receive and file the financial statements for the quarter ending March 31, 2009 COMMITTEE RECOMMENDATION: The Finance - Accounting Committee discussed the financial statements at its meeting on May 12, 2009 and supports staffs' recommendation. DISCUSSION: The key factors are outlined in the attached report. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors reviews each quarter's financial statements. The financial statements for the quarter ended December 31, 2008 were received and filed on February 26, 2009. ATTACHMENTS: DescnpL101l. Type: Quarterly Fin Stmt Analysis.doc Qtr Fin Stmts for Mar 2061- Backup Material D3 Mar 09 FinStmt.pdf Qtr D3 Rpt for Mar 2009 Backup Material Yorba Linda Water District Quarterly Financial Statement Analysis — Water Operating Fund For the Quarter Ending March 31, 2009 Description Total Water Revenue Total Variable Water Costs Personnel Costs Supplies & Services Revenues increased at a slower pace in March as the billing period still included winter water sales. Variable costs and Personnel Costs are under budget, as indicated in prior months' discussions. There are both monthly allocations and unfilled positions that contribute to the 18% under budget amount for Personnel Costs. Supplies & Services are under budget at this point in time. It should be noted that Supplies and Services are reduced by a monthly allocation to Construction -in- Progress. Though these supplies have been paid as expenses and have reduced the cash balance, the expense accounts will appear to be understated by the amount of the allocation. This month's operating loss increased by $565,000, while the negative balance in water fund's operating bank account increased only slightly. Yorba Linda Water District Quarterly Financial Statement Analysis — Sewer Operating Fund For the Quarter Ending March 31, 2009 March Budget 2009 FY 2008/09 Actual Y -T -D 17,498,010 $ 13,606,349 11,156,500 $ 7,908,302 7,389,200 $ 4,183,203 3,773,100 $ 2,346,469 Revenues increased at a slower pace in March as the billing period still included winter water sales. Variable costs and Personnel Costs are under budget, as indicated in prior months' discussions. There are both monthly allocations and unfilled positions that contribute to the 18% under budget amount for Personnel Costs. Supplies & Services are under budget at this point in time. It should be noted that Supplies and Services are reduced by a monthly allocation to Construction -in- Progress. Though these supplies have been paid as expenses and have reduced the cash balance, the expense accounts will appear to be understated by the amount of the allocation. This month's operating loss increased by $565,000, while the negative balance in water fund's operating bank account increased only slightly. Yorba Linda Water District Quarterly Financial Statement Analysis — Sewer Operating Fund For the Quarter Ending March 31, 2009 Y -T -D ($) Y -T -D ( %) Y -T -D ($) Budget Budget Budget Remaining Remaining $ (3,891,661) -22% $ 3,248,198 29% $ 3,205,997 43% $ 1,426,631 38% Revenues increased at a slower pace in March as the billing period still included winter water sales. Variable costs and Personnel Costs are under budget, as indicated in prior months' discussions. There are both monthly allocations and unfilled positions that contribute to the 18% under budget amount for Personnel Costs. Supplies & Services are under budget at this point in time. It should be noted that Supplies and Services are reduced by a monthly allocation to Construction -in- Progress. Though these supplies have been paid as expenses and have reduced the cash balance, the expense accounts will appear to be understated by the amount of the allocation. This month's operating loss increased by $565,000, while the negative balance in water fund's operating bank account increased only slightly. Yorba Linda Water District Quarterly Financial Statement Analysis — Sewer Operating Fund For the Quarter Ending March 31, 2009 The Sewer Maintenance Charges are at budget. This would be expected as sewer revenue is a fixed amount per customer account. Personnel Costs are under budget, with the factors contributing to the variance similar to other months. Supplies and Services jumped this month due to job closing expense. These particular jobs were studies or agreements, with nothing to capitalize, so they were expensed. The operating loss increased by around $95,000 from the prior month. March Y -T -D ($) Y -T -D ( %) Budget 2009 Budget Budget Description FY 2008/09 Actual Y -T -D Remaining Remaining Sewer Maintenance Charges $ 1,249,850 $ 939,425 $ (310,425) -25% Personnel Costs $ 730,800 $ 467,830 $ 262,970 36% Supplies & Services $ 339,600 $ 308,074 $ 31,526 9% The Sewer Maintenance Charges are at budget. This would be expected as sewer revenue is a fixed amount per customer account. Personnel Costs are under budget, with the factors contributing to the variance similar to other months. Supplies and Services jumped this month due to job closing expense. These particular jobs were studies or agreements, with nothing to capitalize, so they were expensed. The operating loss increased by around $95,000 from the prior month. FUND 1 Schedule of Revenue & Expense 03 -31 -09 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Operating Revenues: 11,156,500.00 7,908,302.35 3,248,197.65 29 Metered water sales 17,040,410.00 15,535,530.88 1,504,879.12 9 Sewer maintenance charges 0.00 0.00 0.00 -100 Construction water sales 355,000.00 218,994.53 136,005.47 38 Irrigation sales 45,600.00 58,896.81 ¢13,296.81n -29 Other 13,490.00 59,263.34 C45,773.34> -339 Customer service fees 124,600.00 169,004.66 <44,404.66a -36 Rents and royalties 99,144.00 41,565.51 57,534.49 58 Outside District water sales 50,000.00 18,239.46 31,760.54 64 Unmetered water sales 7,000.00 6,070.45 929.55 13 To: "Restricted for Debt Serv" 0.00 c2,231,383.54n 2,231,383.54 -100 Total Operating Revenues 17,735,200.00 13,876,182.10 3,859,017.90 22 Operating Expenses: Variable water costs 11,156,500.00 7,908,302.35 3,248,197.65 29 Personnel services 7,389,200.00 4,183,202.65 3,205,997.35 43 Depreciation 3,676,500.04 2,625,830.84 1,050,669.16 29 Supplies and services 3,773,100.00 2,346,469.37 1,426,630.63 38 Total Operating Expenses 25,995,300.00 17,063,805.21 8,931,494.79 34 operating (Loss) <8,260,100.00n ¢3,187,623.11a ¢5,072,476.89 61 Total Nonoperating Revenues Nonoperating expenses: Interest expense Security Vulnerability Exp Other expense Total Nonoperating Expenses Income (Loss) before Capital Contributions 1,696,850.00 FUND 1 -125 0.00 1,558,296.72 Schedule of Revenue & Expense 0.00 0.00 -100 03 -31 -09 152,339.99 <152,339.99> -100 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 1,200,150.00 786,675.80 413,473.20 34 Interest income 47,500.00 298,019.31 <250,519.317 -527 Other revenue 449,200.00 495,186.54 <45,986.54> -10 Rest Restricted for Deist Sery 0.00 2,231,383.54 <2,231,383.54> -100 Total Nonoperating Revenues Nonoperating expenses: Interest expense Security Vulnerability Exp Other expense Total Nonoperating Expenses Income (Loss) before Capital Contributions 1,696,850.00 3,811,266.19 <2,114 ■416.19 -125 0.00 1,558,296.72 <1,558,296.72> -100 0.00 0.00 0.00 -100 0.00 152,339.99 <152,339.99> -100 0.00 1,710,636.71 ¢1,710,636.71 -100 <6,563,250.00> ¢1,086,993.63 <5,476,256.37> 83 Capital Contributions 667,100.00 1,415,755.02 <748,655.02a Change in Net Assets: <5,896,150.00> 328,761.39 <6,224,911.39> RUN DATE /TIME: 10:05:10 05 May 2009 REPORT ID: revexp07 -112 W161 FUND 1 Schedule of Combined Revenue 03 -31 -09 OTHER Damages /Relocation Miscellaneous Billing Other Total SEWER MAINTENANCE CHARGES Sewer Rate Charge City Maintenance Charge Maintenance Assesement F.O.G. fees Collection Fees - Placentia Total CUSTOMER SERVICE CHARGES Customer Service Charges Back Flow Charges Total Rents & Royalties Total Operating Revenue 3,290.00 ANNUAL CURB YR VARIANCE VAR 0.00 BUDGET Y -T -D Y -T -D $ OPERATING REVENUE -352 13,490.00 WATER SALES ¢45,773.34n -339 0.00 0.00 Residential. Water 12,983,902.00 11,652,325.40 1,331,576.60 10 Combined Remand 7,158.00 5,738.46 1,419.54 20 Commercial 1,191,790.00 1,053,440.74 138,349.26 12 Fire Detector 150,000.00 90,231.29 59,768.71 40 Landscape Water 2,700,850.00 2,708,032.49 ¢7,182.49> 0 Irrigation 45,600.00 58,896.81 <13,296.81> -29 Other Water Sales 418,710.00 269,066.94 149,643.06 36 To: "Restricted for Debt Serv" 0.00 ¢2,231,383.54a 2,231,383.54 -100 Total 17,498,010.00 13,606,348.59 3,891,661.41 22 OTHER Damages /Relocation Miscellaneous Billing Other Total SEWER MAINTENANCE CHARGES Sewer Rate Charge City Maintenance Charge Maintenance Assesement F.O.G. fees Collection Fees - Placentia Total CUSTOMER SERVICE CHARGES Customer Service Charges Back Flow Charges Total Rents & Royalties Total Operating Revenue 3,290.00 13,156.27 <9,866.27a -300 0.00 0.00 0.00 -100 10,200.00 46,107.07 <35,907.077 -352 13,490.00 59,263.34 ¢45,773.34n -339 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 75,000.00 124,464.00 E49,464.00n -66 49,600.00 44,540.66 5,059.34 10 124,600.00 169,004.66 s44,404.66> -36 99,100.00 41,565.51 57,534.49 58 17,735,200.00 13,876,182.10 3,859,017.90 22 FUND I Schedule of Combined Revenue 03 -31 -09 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D NON-OPERATING REVENUE Taxes & Assesements 1,200,150.00 786,676.80 413,473.20 34 Interest 47,500.00 298,019.31 c250,519.313 -527 Other Revenue 449,200.00 495,186.54 e45,986.54' -10 Rev Restricted for Debt Sery 0.00 2,231,383.54 ¢2,231,383.54a -100 Total 1,696,850.00 3,811,266.19 t2,114,416.19> -125 TOTAL REVENUE 19,432,050.00 17,687,448.29 1,744,601.71 9 RUN DATE /TIME: 16:13:56 04 May 2009 REPORT ID: comrevO? FUND 1 Schedule of Combined Expenses 03 -31 -09 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D PERSONNEL SERVICES Salaries Unit 3,330,359.00 1,980,188.51 1,350,161.49 41 Salaries SC 1,051,509.00 517,640.61 533,868.39 51 Salaries Management 713,116.00 492,952.68 220,163.32 31 Salaries other 0.00 €1.00 0.00 -100 Fees Directors 56,183.00 29,298.71 26,884 29 48 Fringe Benefits Unit 1,512,348.00 754,653.68 757,694.32 50 Fringe Benefits SC 346,877.00 170,370.99 176,506.01 51 Fringe Benefits Management 209,170.00 128,145.26 81,024.74 39 Fringe Benefits Directors 27,004.00 17,027.49 9,976.51 37 Fringe Benefits Other 142,643.00 92,924.72 49,718.28 35 Total Personnel Services 7,389,200.00 4,183,202.65 3,205,997.35 43 Depreciation 0.00 2,625,830.84 c2,625,830.84a -100 Total Depreciation 0.00 2,625,830.84 s2,625,830.84> -100 SUPPLIES & SERVICES AMP Lease 0.00 0.00 0.00 -100 Communications 251,690.00 181,640.83 70,049.17 28 Contractual Services 807,159.00 476,625.90 330,533.10 41 Data Services 282,417.00 30,162.36 252,254.64 89 Dues & Memberships 31,585.09 20,126.27 11,458.73 36 Election Expense 39,999.00 37,789.15 2,209.85 6 Fees & Permits 44,617.00 26,516.12 181100.88 41 Insurance 303,940.00 228,958.16 74,981.84 25 Legal/Settlement Agreements 0.00 0.00 0.00 -100 Maintenance 618,281.00 655,386.11 ¢37,105.11a -6 Non Capital Equipment 209,945.00 58,566.73 151,378.27 72 Office Expense 60,672.00 26,754.48 33,917.52 56 Rental Lease 0.00 0.00 0.00 -100 Professional Services 622,021.00 261,577.49 360,443.51 58 Training 87,643.00 15,230.22 72,412.78 83 Travel & Conferences 59,343.00 16,844.37 42,498.63 72 Uncollectible Accounts 19,499.00 0.00 19,499.00 100 Collection Agency Fee 1,000.00 0.00 1,000.00 100 Utilities 63,920.00 19,216.00 44,704.00 70 Vehicle 269,369.00 238,272.85 31,096.15 12 Job Closing Expenses 0.00 52,802.33 ¢52,802.33a -100 Unbudgeted Expenses 0.00 0.00 0.00 -100 FUND 1 Schedule of Combined Expenses 03 -31 -09 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D $ Total Services & supplies 3,773,100.00 2,346,469.37 1,426,630.63 38 VARIABLE WATER COSTS Fuel & Power Pumping 1,350,000.00 1,173,608.27 176,391.73 13 Ground water Replenishment 3,706,500.00 2,168,976.77 1,537,523.23 41 Purchased Water 6,100,000.00 4,283,490.45 1,816,509.55 30 Readiness /Connection Charge 0.00 282,226.86 <282,226.867 -100 Total Variable Water Costs 11,156,500.00 7,908,302.35 3,248,197.65 29 TOTAL OPERATING EXPENSE 22,318,800.00 17,063,805.21 5,254,994.79 24 NON - OPERATING EXPENSE Other Expense 0.00 152,339.99 <152,339.997 -100 955 Security Vulnerability 0.00 0.00 0.00 -100 Interest Exp on Long -term Debt 0.00 1,558,296.72 ¢1,558,296.72 -100 Total Non - operating Expense 0.00 1,710,636.71 ¢1,710,636.71 -100 Total Expenses 22,318,800.00 18,774,441.92 3,544,358.08 16 RUN DATE /TIME: 16:14:12 04 May 2009 REPORT ID: comexp07 Operating Revenues: Metered water sales Sewer maintenance charges Construction water sales Irrigation sales Other Customer service fees Rents and royalties Outside District water sales Unmetered water sales To: "Restricted for Debt Serv" Total Operating Revenues Operating Expenses: Variable water costs Personnel services Depreciation Supplies and services Total Operating Expenses Operating (Loss) FUND 2 Schedule of Revenue & Expense 03- -31 -09 ANNUAL CURR "SCR "VARIANCE VAR BUDGET Y -T -D Y-T -D � 0.00 0.00 0.00 -100 1,246,550.00 935,588.62 310,961.38 25 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 3,300.00 3,836.22 <536.22> -16 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 1,249,850.00 939,424.84 310,425.16 25 0.00 0.00 0.00 -100 730,800.00 467,830.22 262,969.78 36 564,200.00 402,316.65 161,883.35 29 339,600.00 308,074.39 31,525.61 9 1,634,600.00 1,178,221.26 456,378.74 28 ¢384,750.00n ¢238,796.42> c145,953.58> 38 FUND 2 Schedule of Revenue & Expense 03 -31 -09 ANNUAL CURB YR VARIANCE VAR BU'DGE'T Y -T -D Y -T -D $ Nonoperating Revenues: Property taxes - debt service 0.00 0.00 0.00 -100 Property taxes - operations 66,000.00 0.00 66,000.00 100 Interest income 17,000.00 7,786.58 9,213.42 54 Other revenue 5,000.00 12,128.85 <7,128.85a -143 Rev Restricted for Debt Sery 0.00 0.00 0.00 -100 Total Nonoperating Revenues 88,000.00 19,915.43 68,084.57 77 Nonoperating expenses: Interest expense 0.00 0.00 0.00 -100 Security Vulnerability Exp 0.00 0.00 0.00 -100 Other expense 0.00 1,550.87 <1,550.87> -100 Total Nonoperating Expenses 0.00 1,550.87 ¢1,550.87 -100 Income (Loss) before Capital Contributions ¢296,750.00a e220,431.86n ¢76,318.14a 26 Capital Contributions 251,000.00 790,879.68 ¢539,879.68> -215 Change in Net Assets: <45,750.O0a 570,447.82 <616,197.82a 1346 RUN BATE /TIME: 10;05:10 05 May 2009 REPORT ID: revexp07 FUND 2 Schedule of Combined Revenue 03 -31 -09 OTHER Damages /Relocation Miscellaneous Billing Other Total SEWER MAINTENANCE CHARGES Sewer Rate Charge City Maintenance Charge Maintenance Assesement F.O.G. fees Collection Fees - Placentia Total CUSTOMER SERVICE CHARGES Customer Service Charges Back Flow Charges Total Rents & Royalties Total Operating Revenue 0.00 ANNUAL CURR YR VARIANCE VAR 99.00 BUDGET Y -T -D Y-T -D 1,487.22 OPERATING REVENUE -100 0.00 1,586.22 ¢1,586.22a WATER SALES 1,141,650.00 871,005.14 270,644.86 24 Residential. Water 0.00 0.00 0.00 -100 Combined Demand 0.00 0.00 0.00 -100 Commercial 0.00 0.00 0.00 -100 Fire ]Detector 0.00 0.00 0.00 -100 Landscape Water 0.00 0.00 0.00 -100 Irrigation 0.00 0.00 0.00 -100 Other Water Sales 0.00 0.00 0.00 -100 To; "Restricted for Debt Serv" 0.00 0.00 0.00 -100 Total 0.00 0.00 0.00 -100 OTHER Damages /Relocation Miscellaneous Billing Other Total SEWER MAINTENANCE CHARGES Sewer Rate Charge City Maintenance Charge Maintenance Assesement F.O.G. fees Collection Fees - Placentia Total CUSTOMER SERVICE CHARGES Customer Service Charges Back Flow Charges Total Rents & Royalties Total Operating Revenue 0.00 0.00 0.00 -100 0.00 99.00 ¢99.00 -100 0.00 1,487.22 [1,487.22 -100 0.00 1,586.22 ¢1,586.22a -100 1,141,650.00 871,005.14 270,644.86 24 0.00 0.00 0.00 -100 104,900.00 64,583.48 40,316.52 38 0.00 0.00 0.00 -100 3,300.00 2,250.00 1,050.00 32 1,249,850.00 937,838.62 312,011.38 25 0.00 0.00 0.00 -100 0.00 0.00 0.00 -100 0100 0.00 0.00 -100 0.00 0.00 0.00 -100 1,249,850.00 939,424.84 310,425.16 25 FUND 2 Schedule of Combined Revenue 03 -31 -09 ANNUAL CURB YR VARIANCE VAR BUDGET Y -T -D Y -T -D � NON - OPERATING REVENUE Taxes & Assesements 66,000.00 0.00 66,000.00 100 Interest 17,000.00 7,786.58 9,213.42 54 Other Revenue 5,000.00 12,128.85 c7,128.85> -143 Rev Restricted for Debt Sery 0.00 0.00 0.00 -100 Total 88,000.00 19,915.43 68,084.57 77 TOTAL REVENUE 1,337,850.00 959,340.27 378,509.73 28 RUN DATE/TIME: 16:13:56 04 May 2009 REPORT ID: comrev07 FUND 2 Schedule of Combined Expenses 03 -31 -09 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % PERSONNEL SERVICES Salaries Unit 329,376.00 226,538.15 102,837.85 31 Salaries SC 103,997.00 52,592.95 51,404.05 49 Salaries Management 70,525.00 57,979.04 12,545.96 18 Salaries Other 0.00 0.00 0.00 -100 Fees Directors 5,557.00 2,845.23 2,713.77 49 Fringe Benefits Unit 149,573.00 86,395.58 63,177.42 42 Fringe Benefits SC 34,311.00 20,527.72 13,783.28 40 Fringe Benefits Management 20,688.00 13,434.97 7,253.03 35 Fringe Benefits Directors 2,670.00 1,555.33 1,114.67 42 Fringe Benefits Other 14,103.00 5,961.25 8,141.75 58 Total Personnel Services 730,800.00 467,830.22 262,969.78 36 Depreciation 0.00 402,316.65 ¢402,316.65 -100 Total Depreciation 0.00 402,316.65 ¢402,316.65> -100 SUPPLIES & SERVICES AMP Lease 0.00 0.00 0.00 -100 Communications 22,545.00 34,866.00 7,679.00 34 Contractual Services 72,676.00 66,429.85 6,246.15 9 Data Services 25,427.00 852.22 24,574.78 97 Dues & Memberships 2,845.00 2,007.52 837.48 29 Election Expense 3,601.00 3,737.39 a136.39> -4 Fees & Permits 4,019.00 2,708.57 1,310.43 33 Insurance 27,365.00 22,644.22 4,720.78 17 Legal /Settlement Agreements 0.04 0.00 0.00 -100 Maintenance 55,669.00 32,047.95 23,621.05 42 Non Capital Equipment 18,900.00 3,524.79 15,375.21 81 Office Expense 5,463.00 2,646.07 2,816.93 52 Rental Lease 0.00 0.00 0.00 -100 Professional Services 56,004.00 26,442.32 29,561.68 53 Training 7,892.00 4,298.26 3,593.74 46 Travel & Conferences 5,342.00 1,381.02 3,960.98 74 Uncollectible Accounts 1,755.00 0.00 1,756.00 100 Collection Agency Fee 90.00 0.00 90.00 100 Utilities 5,755.00 157.42 5,597.58 97 Vehicle 24,251.00 45,602.35 ¢21,351.35a -88 .lob Closing Expenses 0.00 78,728.44 <78,728.44a -100 Unbudgeted Expenses 0.00 0.00 0.00 -100 FUND 2 Schedule of Combined Expenses 03 -31 -09 ANNUAL CURR YR VARIANCE VAR BUDGET Y -T -D Y -T -D % Total Services & supplies 339,600.00 308,074.39 31,525.61 9 VARIABLE WATER COSTS Fuel & Power Pumping 0.00 0.00 0.00 -100 Ground Water Replenishment 0.00 0.00 0.00 -100 Purchased Water 0.00 0.00 0.00 -100 Readiness /Connection Charge 0.00 0.00 0.00 -100 Total Variable Water Costs 0.00 0.00 0.00 -100 TOTAL OPERATING EXPENSE 1,070,400.00 1,178,221.26 r107,821.26> -10 NON - OPERATING EXPENSE Other Expense 0.00 1,550.87 e1,550.87> -100 955 Security Vulnerability 0.00 0.00 0.00 -100 Interest Exp on Long -term Debt 0.00 0.00 0.00 -104 Total Nan - operating Expense 0.00 1,550.87 c1,550.87a -100 Total Expenses 1,070,400.90 1,179,772.13 c109,372.13> -10 RUN DATE /TIME: 16:46.33 04 May 2009 REPORT ID: comexp07 Meeting Date: To: From: Presented By: Prepared By: AGENDA REPORT May 28, 2009 Board of Directors Ken Vecchiarelli, General Manager Budgeted Funding Source: Diane Cyganik, Finance Director Dept: Reviewed by Legal: Sandi Van Etten, Senior CEQA Compliance: Accountant Subject: Investment Report for Quarter Ending March 31, 2009 SUMMARY: ITEM NO. 6.6 N/A N/A Finance N/A N/A Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. Staff is submitting the report for the quarter ending March 31, 2009. STAFF RECOMMENDATION: That the Board of Directors receive and file the investment report for the quarter ending March 31, 2009. COMMITTEE RECOMMENDATION: The Finance - Accounting Committee has reviewed and discussed the Investment Report and supports staff's recommendation. DISCUSSION: Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. The average portfolio yield for total investments excluding Wells Capital is 0.19% compared to the March 2008 yield of 2.29 %. The average portfolio yield including Wells Capital is 0.70 %. The average number of days to maturity as of March 31, 2009 equaled 127 days, and the average term for the portfolio totaled 42 days. The Water Fund net investments excluding the annexation fund, reserve funds and restricted revenue funds are ($5,122,594), as compared to prior year investments at this point in time of ($1,929,545). The operating fund interest earned in the month of March 2009 is $391 . Total operating fund interest received for fiscal year 2008/2009 is $5,546. The operating fund investment interest comparison is listed in the attached report. ATTACHMENTS: Name: Invst Rpt 3- 09.xls Invst Rpt Qtr 3 -09 discussion.doc Description: Invst Rpt 3 -09 by bank Quarterly Invst Rpt 3 -09 discussion Type: Backup Material Backup Material Yorba Linda Water District Investment Portfolio Report March 31, 2009 Market % Percent Investment Maturity Value Cost of Total Institution Yield Date Date Cash & Checking Accounts: $ 302,664 $ 302,664 Wells Fargo Bank N/A 1,200 1,200 Imprest Cash $ 303,864 $ 303,864 0.64% Total 0.00% Money Market Accounts: $ 178,408 $ 178,408 Wells Fargo Money Market 0.35% N/A - - Wells Fargo MM/Annexation 0.35% $ 178,408 $ 178,408 0.38% Total 0.35% $ 482,272 $ 482,272 1.02% Sub -total 0.13% California Asset Mgmt. Program: $ 6,679,171 $ 6,679,171 14.14% California Asset Mgmt. Program 0.89% N/A Money Market Account: $ 24,174,655 $ 24,174,655 0 0 $ 24,174,655 $ 24,174,655 $ 31,336,098 $ 31,336,098 US Bank 2008 Revenue Bond 0.00% US Bank 2003 Revenue Bond 0.00% N/A 51.19% 66.36% Sub Total Investments 0.00% 0.19% Individual Management Account: $ 15,924,430 $ 15,887,760 33.64% Wells Capital Management 1.69% N/A $ 47,260,528 $ 47,223,858 100% Total Investments 0.70% 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. a* CC yalu v6e_� Sandi Van Etten, Senior Accountant 3/31/2009 Investment Report Summary The operating fund investment interest comparison is as follows: Actual for the Months of 03/31/08 03/31/09 Monthly Interest $ 956 $ 391 Year to Date $27,268 $ 5,546 Fiscal Year 2007/2008 2008/2009 Interest Budget — annual $86,000 $64,500 Interest earned on investments is recorded in the Fund that owns the investment. Investment Summary Comparison The distribution of investments by fund for March 2009 is as follows: Fund Description Balance 03/31/09 Annexation 9,355,086 19.78% Water operating - 10.83% Water R &R 2,045,075 4.33% Water Capital Projects 149,500 0.32% Restricted for debt service 662,572 1.40% COP Bonds 2003 228,242 0.48% COP Bonds 2008 23,946,413 50.64% Sewer Operating 1,412,316 2.99% Sewer R &R 306,904 0.65% Sewer Capital Projects 188,389 0.40% ID1 4,457,153 9.43% ID2 9.655.724 20.42% 47,284,780 100.00% Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT May 28, 2009 Board of Directors Ken Vecchiarelli, General Manager Budgeted Funding Source: Gina Knight, Human Resources Dept: Manager Reviewed by Legal: ITEM NO. 6.7 N/A N/A Administration N/A Gina Knight, Human Resources CEQA Compliance: N/A Manager Damage Claim Filed by Nelda E. Wamsley on Behalf of William C. Wamsley, The District received the attached claim seeking reimbursement for property related damages resulting from lime /white film on claimant's glasses, dishes and inside dishwasher. The claimant alleges damages were incurred as a result of the District not notifying claimant that their water supply was now coming from another area (source) and was hard due to the lime and magnesium in the water. STAFF RECOMMENDATION: That the Board of Directors reject the claim. COMMITTEE RECOMMENDATION: The Personnel /Risk Management Committee discussed this item at its meeting held May 11, 2009 and recommends that the Board of Directors reject the claim. DISCUSSION: On April 21, 2009, the District received a claim from Nelda E. Wamsley on behalf of Mr. William C. Wamsley in the amount of $596.20 as reimbursement for expenses incurred to purchase and install a new dishwasher and for the initial service call. The claimant alleges had she received timely notification from the District of the change in water hardness and information about a solution to remove the white film from her glasses, then the claimant would not have incurred unnecessary expenses and would not have thrown out a perfectly good dishwasher. During the latter part of last year, MWD discontinued blending water from the State Water Project and the Colorado River and only provided Colorado River water from the Diemer Plant because of the on -going drought conditions and legislative restrictions on pumping water from the Sacramento - San Joaquin Bay Delta. This change increases the concentration of total dissolved solids in MWD water which may increase the occurrence of spotting on glassware and leave a white film on other surfaces. District staff have suggested to callers complaining about the spotting to use Lemi Shine or a similar product to remove the residue that is left behind after washing /rinsing. Mrs. Wamsley contacted District staff after she had already taken action to replace her dishwasher and found the problem persisted even with a new dishwasher. When staff suggested adding a softening product to the rinse cycle, her problem was resolved. Staff investigated and reviewed the submitted claim and recommends the claim be rejected. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors reviews all claims not settled by staff. Any claims and accompanying staff reports are presented to the Board of Directors for consideration as they are received. ATTACHMENTS: Description: William_Wamsley5- 2009.pdf Claim Form PLEASE CONTACT YLWD RECORDS DIVISION FOR THIS ATTACHMENT (714) 701-3101 records@ylwd.com AGENDA REPORT Meeting Date: May 28, 2009 To: Board of Directors From: Ken Vecchiarelli, General Manager Presented By: Steve Conklin, Engineering Manager Prepared By: Scott Moulton, Consultant Budgeted: Total Budget: Cost Estimate: Funding Source: Account No: Job No: Dept: Reviewed by Legal: CEQA Compliance: ITEM NO. 7.1 Yes $300,000 $300,000 District & Developer Funds 1012700 200803 Engineering Yes N/A Subject: Fairmont Site Improvement Agreement with Shapell Industries SUMMARY: The purpose of the Fairmont Site Improvement Agreement is to document improvements at the Fairmont Booster Pump Station site that have been requested by Shapell Industries and by the District. The agreement formalizes the responsibilities of the respective parties for funding the design and construction of these improvements. STAFF RECOMMENDATION: That the Board of Directors authorize the President and Secretary to execute the Facilities Finance, Design and Construction Agreement with Shapell Industries, Inc. for the Fairmont Site Improvements. COMMITTEE RECOMMENDATION: The Planning- Engineering- Operations Committee discussed this item at its May 7 meeting and supports staff recommendation. DISCUSSION: The District and Shapell have worked together over the years to plan and construct infrastructure improvements required for the S &S development projects located around Fairmont Blvd and Bastanchury Road. During this time, Shapell has suggested improvements at the Fairmont Reservoir and Booster Pump Station that improve the appearance and blend with the design of the community. Shapell has agreed to fund these requested improvements. Along with the improvements requested by Shapell, the District saw an opportunity to benefit from the construction timing by adding improvements and site maintenance that had been deferred. For example, instead of only paving the new construction area, the improvements will include repaving the existing worn pavement and fixing an existing drainage problem at the same time. Additionally, the District recognized the value of constructing other site improvements at this strategically located facility, which is located in the center of the District's service area. These improvements include a warehouse to store materials and equipment such as a backhoe, a dump truck, mobile pumping equipment and materials used during routine maintenance and emergency operations. The District requested improvements would be constructed at the same time as the Shapell improvements and at District expense. District and Shapell representatives were asked to formalize the vision and the understanding for how funding would be established. The two parties in consult with their respective legal counsels have jointly developed the attached District - standard Facilities Finance, Design and Construction Agreement ( FFDCA). The FFDCA identifies the scope of the Fairmont Site Improvements, defines the obligations of the respective parties and provides for resolution of any disputes that may arise during the project development and construction. The FFDCA describes $443,483 in improvements for the Fairmont Site with an agreed cost - sharing of 41.3% by Shapell and 58.7% by YLWD. A summary of the improvements is shown in Exhibit A. The full scope of the improvements including a cost estimate is shown in Exhibit B and a site plan showing the improvements is attached as Exhibit C. The Exhibits are attachments from the FFDCA and are provided here for reference. Design of the improvements was funded initially by Shapell and is now complete. The cost estimate from this design was used to determine the cost share split and reimbursement to Shapell for the District's share of the design costs. The FFDCA calls for Shapell to construct the improvements with appropriate approval, review, control and inspection by YLWD. PRIOR RELEVANT BOARD ACTION(S): A Pre - Annexation Agreement with Shapell Industries, Inc. was approved by the YLWD Board of Directors on July 25, 2006. ATTACHMENTS: Description: Type: Exhibit A: Fairmont Site Improvements Cost & Share Exhibit _A Summar�Fairmont _Site_Improvements.pdf Exhibit Summary Exhibit B Fairmont Site Improvements Full Cost Details.pdf Exhibit B: Fairmont Slte Improvements Detail of Exhibit Costs Spreadsheet Exhibit C Fairmont Site Improvement Layout.pdf Exhibit C: Fairmont Site Improvement Layout Exhibit Fairmont_Agreement.doc FFCDA Fairmont Site Improvement Agreement Agreement EXHIBIT A FAIRMONT SITE IMPROVEMENTS COST & SHARE SUMMARY IMPROVEMENT EXISTING BUILDING UPGRADES BUILDING ADDITION GARAGE OFFSITE COSTS GRAND TOTAL % SHARE Note: full details of the costs are shown in Exhibit B. S&S SHARE $21,502 $88,111 $0 $73,653 $183,266 41.3% 58.7% 100.0% COMMENT YLWD pays for concrete storage bins and electrical upgrades. Addition paid by S &S. Garage paid by YLWD. Split offsites 50150 with the following exception. YLWD to be 100% responsible for 5150 sq. ft. of the AC and drainage line items #100, 102, 103 and 130 ft of 101 in Exhibit B. Value engineering reduced the total costs by $24,542. (Concrete roof, Type "B" building, etc.) 11612009 Q 4:30 PM AIRMC T BOOSTER STATION SITE IMPROVEMENTS Detail of Costs Spreadsheet _ ± -c I CC: y SHAPELL 1 204 CONCRI,TI STOR.AGF FANS S 20,941M S 2, ,941.041 14,511.00 2 230 F.LECI'Kfi:Al.SW'i ] {:HQF:AR ANL7 UPGRADES - - S 6,200.00 f 6,2.w_.Io WS 3' 240 F1. Ati IEICING.'6 I Ucc0 _ — $ 6,900.00 S 6.90000 4 234 _ — RUOFIYG. US . CONCitE7E ROOF TILE, S 9,i32,P7 -- -- -- - - -f 9,532.00 5 20S STRUC -LRAL STET'.. S 4,070.00 ] S 4,070.00 6 _ _ it:11- I -01AL CONSTRUC-HON ")%E; S 47,.543X0 S 17, 4L_'C0 $ 20,6172.00 7' 201 _ ARCHITECTURE 204 CONCR;::I;:: :OUNDAT'ION .� _.... S 6,248.00 8: 297 CON 1- 191GENC[ES S 1,00[1.00 [ S - S 1,0D0.00 91 CONSULTANT - (E- ECTRICAL) $ i S S - 10; _ CC)N$EILTAN7- [FI�'•1C7`ITf.F 24] $ - -- -- - ':s - S - 11� CONS { ;[;PANT- (POST - TENSION) S _.- �....$ . 12.00 38, 2 CONSULTANT - (STRUC 1-URAL) S ;s - S 31 SUO -TOTAL SOFT COS F: S 1,000.00 is S 7000.{10 4 GRAND TOTAL (UPGRADES): S 48,E+4.3F,00 S 27,041.100 1 S 21.502.00 5 6 ADDITION 7' 258 C:ABfNETS S 1.160.00. � 5 1.16000 181 245 _ ,,.CARPENTRY+TINISH S 3,562X0: $ - 3 6100 19: 220 CARPENTRY ROUGff- LAI30R& MAIL S 14,511.00 $ 14,511.00 20' 221 CARPFNTRYROU(;FI- LUW.RFR -� -�- -- WS 5,4{19.00 — 4& 5,46900 .1' 222 CARPENTRI ROUGNTRUSSES f -- .- ..--- 3 -.� -�S S 3,150.00 22 259 CEiR,1M]C 7TLF f 450bO S 470.00 23 280 CLEAN -UP ROUGH & FFNISFI s 1,500.00 S 1.5'wD0 24 204 CONCR;::I;:: :OUNDAT'ION .� _.... S 6,248.00 5 6,248.00 2,; 301 :' )NCRETF ALTERNATI% - - ....._ ..._ _ S 3,000 -00 ..__ Is 3.00000 26: 241 CIRYWALI. $ 2,450,00 f _ 2,450.00 27 2L5 FLECTRICAL FIXTURES f 125.00 1. S 12.00 38, 230 ___ -- -- _ - _ ELECFRIC.AL VAR134G S _. - 5,358 -00 -- — $ 5,358 -00 29 272 FLOORS $ 1,170.00: $ 2,17000 30 206 GUTTERSA)l7WNSPOUT' S 400.00 S 400.00 31 146 IIARDWARF, Fk6t S l,i 10.00: S 1,110.00 31 231 HT A 11 N & AIR COVD ZONING f �. m�. S %275_00 S 3 75 00 33. 235 _ Ii SULAT:0 , S 49540 S 48500 34 242 OPUNAM&NTAL IRON — E 265.00 , s 265.00 35 257 - PAINTING _ _._.,..._, _... $ 2.25000 _vY . S 2,25000 36 I40 PI.ASTERIN(WS"[1JCC0 S 7,61000 $ 3.610.00 37 217 PI.UMBTNG S 7,385.00 $ 7,38500 38 234 :ROOFING - Included in F•alsnng Bu:l4mg Upgrades Rw -,q C-L S - s - 39. 281 SITWGR H(]US: -. CONNECTIONS S 1,0W.00 : 3 1.000.00 40 233 SHEET METAL. S 529OO S 529.00 41 268 WEATf-113R$TR[PPINC S 100 CO! S 10000 42 2.51 WINDOWVSi II.Ywi 60ORS S 7 •b 431 SL fLTCYI'Ai, CC)NSTRUCIIGIYCOST: 5 7D,298XD S 70,29$,00 44: 201_ ARC[313ECIURE 8,659.56 45, REVISE ARCI111-EC17:RE TO MEET CDC UPDAI E 221 46, 297 CONTIVGFTCI1-1; 9 47_ CONSULTANT - (F1,rCRICAL) S — 4& CONSULTANT ; HVAC/TITI.F.24D ....C(7HSULTAN7 S 49 p- - [POST- T_ENS10N1...._.w�_�. _ S 501 _ CONSULTANT - (STRUCT URAL) g 51 � 200 _ SCHIX)L FEES [53.55 per Sy.. Fs.) S 5_ 241 DRYWAI. L- TYPT;' S' ST ]t'JCTURE- NDIIIRDRYWALL(- 51250) SUB-TO_TAL SOFT COST: S 53 631 265 GRAND TOTAL {ADDIT10N): S S 200.W S 200.00 641 230 54 S 3,685.00 S 3,686.0D 651 55 GARAGE $ 8,477,00 $ 8.477.00: 561 245 206 OUrrER5IPOWNS POI.T 56 _TS- - 3 8,659.56 D 58: 221 _ 3,00U.G0 , S 3.000.D0 1,279.20 5 1279.20 ].69L' W ; 1 S 1,690.00 5(k1.00 $ 500.00 1.300.00 --- _ . 5 1,300.00 1.38450 S !.384.50 1.26 11.26 57' 220 (�ARPFA :_PLY ROUGII- LiLROR_ . �.. .. S 21 j60 $ 21,560,00 . 58: 221 C.AKPf: Ni. KYROUGH- LUMBER �E 8,205.00 S 8,70500 59� 222_ CARPENTRY ROI,3GIi- 7RUSSFS - -- — — S 3,60_0.00 $ 3,600.00 60, 2S0 I. AU -JE' Wp .C,II& FTNNS i $ 3,D040D S 1,000.00 6 1 204 L..��11 -K- ITT -, FOUNDATION 3 13.842.00 5... 13,84200... 62 241 DRYWAI. L- TYPT;' S' ST ]t'JCTURE- NDIIIRDRYWALL(- 51250) $ 57350.00, S 5,35000. 631 265 ELECTRICAL. FIXTURES S 200.W S 200.00 641 230 ELEC 1-R1CAL W'LRING S 3,685.00 S 3,686.0D 651 236 GARA61- DOORS, COMMER. ROT. €. -UP $ 8,477,00 $ 8.477.00: 661 206 OUrrER5IPOWNS POI.T S 70000 S 700,00 i- 671 246 WAPDWARF FINISH S 250.00 S 250.00 68' 175 -_ INS WAT]ON- LIAMINATEDBY5'LWD 5 is ; 64 257 PATNd7Nf,_ E 2,685.00 8 2,685.00 70' 202 P1:Ii�131 5 AND FEES _ S 2,709.88 1 S 2,7[)],88 71 PLAST UNGISTUCCO ,9]5:5 S 6 X0 721 _2_40 234 - - ROOFING - UST CONCRETE ROOF TILE - - —� - S i,76-0-0 —S 3,783 00 73 233 SHEET METAL - -- - - _. S.... -66600 S 66600' . 74: 208 STR66CRA- S'T'EEL 1 8,568 00 S 8,568.00 75 268 WEATFIFUTRIPPING .. ,.wW S 100.00 S '. 10000 76 SU3•T0 'I A 1. CONSTRUCTION COST: - S 92,676.88 S 92A76,8-9 EXH,311' B cont hued =A:R ONT BOOSTER STATION SATE MPROVEMENTS Detail of Costs Spreadsheet 77 261 ARCI- =CTURP. 97 24,646'6 5 5 24. 20,546.44 78. .91 CCINMNIGENCIUS S 2,000.(0 a 8 F 791 CONSULTANT - (ELECTRICAL) 5 3,640.80 $ 3,raC,80; S 92000 so n, CONS IJTTANT - (HV'ACrT I E'L E 24) S 4.810.00 $ 4,81000 S 55000 S 81` CONSULTANT- (POST-TEN SION' s 75U.00 S 750 -60 1 $ 5,180.00 S 82 CONSULTANT - (STRUCTURAL) 5 370000: $ 3,70.00 S 23.00 $ 83 SUB-TOTAL SOf f COST: S 19,547.2,547.2; 300 C CY $ 84 GRANT] TOTAL GARAGE: S 132,224.12 S 132,22112 1K � 8� - - S 11,370,00 5 5 9,OL2.56 S S 2-07.90 16 8b ON-SITE COST SU 1)�h AM 8^ E(sTNG HilAIVG UPGRADES 48,64]6 $ 27,0-41.w.0. _....,.x.2.. 0 0 88 ADDITION S 88,111.26 S - 5 88,111.26 89 NEW GARAGE ,. S - 132,224.12 S . -,_. 132.224.12 S - 90 - TOTAL: S 268,878.38 IS 159.266,I2 1 S 109,613.26 91 S 5. B1,52 T T 2540.7ti S S 2,646 74 4 7 K � 92 3 L LF S S 20.04 S S 67.27 1 93 S 5, 8 1 1:a F F' &[ 0" Cvfb CSn1 8 94 OFFSITE COST ESTIMATE 1 LF S S 19.61 S S 156.88 1 1 S 78.44 S f 1 l I 1 7 1 11 12 12 12 1 1 L2 12 12 12 t 13 13 13 1 95 96 Item b .. _Ileseriptl.n Rate Amount I YLWD I SIIAPiLLI- 97 71 „- .�., it :ns, NDSi11212*#122] to 8 8 F FA 5 5230.00 S S 1.840.00 S S 920.00 S S 92000 1 E EA S S550.00 S S 55000 S S 55000 S S 28V L LF S S 18.50 $ $ 5,180.00 S S 3.792.50 $ $ 1,387.50 100 L LF S S 23.00 $ $ 2,30,94 $ $ 2,300.00 300 C CY $ $ 5.00 $ $ 1.500.00 S S 1.500.00 1K � �- •Total aTir..;ic: d d S S 11,370,00 5 5 9,OL2.56 S S 2-07.90 16 17 • CC 1000 - S-MFET1ALFROVEMENT& SL ❑ ❑ P P &[ Concrerc Gutn;r per detail on sheaf 3 (na l+ase) - -_ _ _ 4.ia L LX g S 4 128.8 S S 2.06444 - - S 2,064,44 7aa S SF S gS4 S S 5. B1,52 T T 2540.7ti S S 2,646 74 4 7 K � � &,l 1mrsitip l rum F to 4" CF _ 3 3 L LF S S 20.04 S S 67.27 1 13 30A4 S S 5, 8 1 1:a F F' &[ 0" Cvfb CSn1 8 8 1 1 LF S S 19.61 S S 156.88 1 1 S 78.44 S S 78 44 6: 4 L L P Pod Wl�i tc SlfiM 1 140 L LF 1 1.00 S S 140.00 1 1 S 7t:.00 $ $ 70.00 7 10 A I 1'ann I1 -dicap Stencil WIVan Accessible Sign 80` AFG with 18' I E EA S S350.00 S S 350.00 $ $ 175.04 S S 175.00 8 11 R R M Ml 12^ High "No Par in Si e" Paimod in Whale I I E EA r r] oo 3 300.00 � � S 150.0 S S 150.00 9 I s s r rr ova otre. " 3sposc S s![c 0 0 .o C Ct.1. 6 6, ( ( U.._r o 0 E7 S Sl 6 6' 17in to he Disposed OrTsi[e 2 21,571 S SF 5 S 3,154_22 S S 1.399 7 1 14 S S2 l llroccss sub E ade 12' co cum t1090°% 2;,571 ~ ~3>= S S 009 - - 9.1i 79 $ $ 97,^,,3L $ $ - `)7[1.7 2 15 ' F7i1 AC Dnwv v Ratnp 1 50 S SF S S 5.00 S S 250 00 $ $ 125.00 1 S S 125.00 - - Iii: CEOTE CE N I CAL ENG INZERINC �.. - -- - --- .._'T.$ 5,060A4 S 2,56001 :. 506.17fF 136 - TO1.Al. CONSULTA NTS: 5 40,1 S 2B,b6. 20 r1a.00 .7rc. ::.i: .8: 'FA L: 5 174, &114,99 s 166,95:._: 1,G$27t 137 13S PROJECT70TAL; S 443,483.37 S 260,217.31 S 183,266.00 w Invo n 0 z z Lli oerr EXHIBIT C FAIRMONT SITE IMPROVEMENT LAYOUT RESERVOIR .. ... ... ... ... .. ... ... ... . . . ... .. ... . ... ... ... . . . ... ... ... ------- 15-y- AUTO aIDIF SEX. PROPANE TANK EXISTING XISTING NEW 13 PUMP STATION AUTO SLIDE GATE PROPOSED 6• HT. BLACK WALL IEWADDITION NORTH FAIRMONT BOULEVARD 1 S' ALPTO SLIDE GATE - RESLRV PREPARED BY: SCALE: NO SCALE YORBA LINDA WATER DISTRICT DATE: FAIRMONT SITE IMPROVEMENT LAYOUT 04-15-09 1717 E. MIRALOMA AVENUE FILENAME, PLACENTIA, CALIFORNIA 92870 0 (714) 701-3000 J -000803 FINANCE, DESIGN AND CONSTRUCTION AGREEMENT FOR FAIRMONT BOOSTER PUMP STATION IMPROVEMENTS THIS AGREEMENT ( "Agreement "), dated May _, 2009 is by and between YORBA LINDA WATER DISTRICT, a local public agency, created and operating under authority of Division 12 of the California Water Code ( "YLWD" herein), and SHAPELL INDUSTRIES INC, a Delaware Corporation, ( "Shapell" herein), (YLWD and Shapell are sometimes collectively referred to as "Parties" herein). The Parties do hereby enter into the following agreement: RECITALS A. Shapell owns certain real property adjacent to and near YLWD's Fairmont Booster Pump Station ( "Booster Station "). Shapell desires to develop its property and desires the Booster Station to be compatible in landscape and design. B. Shapell has offered to perform the work set forth in Exhibit B to this Agreement at the Booster Station (collectively, the "Improvements ") in order to make it more compatible in landscape and design to Shapell's property. C. Shapell and YLWD desire to apportion the 1) "Design Costs," 2) "Construction Testing, Oversight and Inspection Costs" and 3) "Construction Costs" for the Improvements pursuant to the engineer's estimate set forth in Exhibits A and B to this Agreement. According to Exhibit A, YLWD would be responsible for Fifty Eight and Seven Tenths Percent (58.7 %) of the "Design Costs," "Construction Testing, Oversight and Inspection Costs" and "Construction Costs" while Shapell would be responsible for Forty One and Three Tenths Percent (41.3 %). EXECUTORY AGREEMENTS NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows: 2/04/09 1 I. DESIGN OF IMPROVEMENTS A. Design Costs Design of the Improvements has been completed by Shapell at a cost of Thirty Four Thousand Three Hundred and Six Dollars ($34,306) YLWD's share of the costs for the design work performed is Twenty Four Thousand Six Hundred and Forty Six Dollars and Forty -Four Cents ($24,646.44). Within twenty (20) working days of the execution of this Agreement by Shapell and YLWD, YLWD shall submit a payment to Shapell in the amount of Twenty Four Thousand Six Hundred and Forty Six Dollars and Forty -Four Cents ($24,646.44) representing payment of YLWD's share of the design work performed for the Improvements. B. CEQA Costs None. II. CONSTRUCTION OF IMPROVEMENTS A. Construction Shapell, by a contractor duly licensed in the State of California ( "Contractor" herein), shall cause the Improvements to be constructed in accordance with the plans and specifications prepared or approved by YLWD. Contractor, and the terms under which Shapell shall hire Contractor, including the price to be paid to the Contractor for Construction for the Improvements, shall be submitted for written approval by YLWD prior to Shapell's execution of a contract with Contractor, which approval by YLWD shall not be unreasonably withheld. The agreement between Shapell and Contractor shall provide that all construction shall be performed in accordance with the plans and specifications prepared or approved by YLWD for the Improvements and that the construction thereof shall, at reasonable times, be subject to inspection by YLWD. B. Construction Change Orders Change order requests for work other than as described in the construction contract discussed in Section II.A above must be approved by YLWD and Shapell. With respect to each change order request, Shapell and YLWD shall come to an agreement as to whether the Construction Costs split (as described in Section III.A 2/04/09 2 below) will be used as to the change order or whether a new split will be used for the respective change order and how reimbursement, if any, will be accomplished. C. Testing and Construction Oversight /Inspection In conjunction with the construction of the Improvements, YLWD will incur costs for materials testing, construction oversight and construction inspection, including YLWD staff and outside consultant time (collectively, the "Construction Testing, Oversight and Inspection Costs "). Shapell's share for the Construction Testing, Oversight and Inspection Costs shall be Forty One and Three Tenths Percent (41.3 %) while YLWD's share shall be Fifty Eight and Seven Tenths Percent (58.7 %). Shapell shall reimburse YLWD for Shapell's Forty One and Three Tenths Percent (41.3 %) share of the Construction Testing, Oversight and Inspection Costs as documentation is received from YLWD. Reimbursement requests for Construction Testing, Oversight and Inspection Costs to Shapell must be substantiated with invoices, receipts and payment records for the Construction Testing, Oversight and Inspection Costs. Shapell's reimbursement to YLWD shall occur within twenty (20) working days of Shapell's receipt of the aforementioned documentation for the Construction Testing, Oversight and Inspection Costs. Provided, however, that the twenty working -day time period shall be tolled during any dispute regarding the sufficiency of the documentation submitted by YLWD for reimbursement. C. Permits Shapell shall acquire all permits required from the City of Yorba Linda and /or other governing agencies for the construction of the Improvements and YLWD shall reasonably cooperate as necessary to assist Shapell to acquire the permits. D. Bond Shapell agrees to provide, or require the Contractor installing or constructing the Improvements to provide, a Surety Bond and warranty in favor of YLWD and the Shapell in the amount of 100% of the contract price guaranteeing the Improvements constructed under this Agreement against defects in workmanship and materials. The Surety Bond, guarantee and warranty shall remain in effect for one (1) year after the recording of the Notice of Completion, as described in Section 2/04/09 3 IV.A. The Surety Bond may be reduced to ten percent (10 %) of the contract price after the recording of the Notice of Completion. The Surety Bond shall further guarantee that if any defect in workmanship or materials is discovered within the guarantee period, the Improvements will be restored to full compliance with the requirements of this Agreement and the contract documents, including test requirements, for the portions of the Improvements found detective. E. Use of Improvements Use, in whole or in part, of the Improvements constructed under this Agreement (including use and exercise of control by YLWD) prior to acceptance of a Bill of Sale for the Improvements by YLWD shall not be construed as an actual or constructive conveyance to YLWD nor shall such use constitute a waiver of any section or provision of this Agreement. F. Insurance Shapell shall require each construction contractor retained by Shapell providing construction services for the Improvements, except "construction consultants" described below, to provide and maintain at all times during the performance of this Agreement the following insurance: (1) commercial general liability ( "CGL ") insurance, (2) automobile liability insurance, and (3) workers' compensation and employer's liability insurance. Each contractor shall require any subcontractor to provide insurance meeting the specifications required in this Agreement. Shapell shall require each construction consultant engaged by Shapell providing professional services for the Improvements, including professional engineers and other licensed professionals, to provide and maintain at all times during the performance of this Agreement the following insurance: (1) CGL insurance, (2) automobile liability insurance, (3) professional E &O insurance and (4) workers' compensation and employer's liability insurance. Shapell shall provide and maintain at all times during the performance of this Agreement, the following insurance: (1) CGL insurance, (2) automobile liability insurance, and (3) workers compensation and employer's liability insurance. 2/04/09 4 Each insurance policy required by this Section II.F shall have limits of not less than $1,000,000 per occurrence. The CGL insurance policy shall also have a $2,000,000 aggregate limit applied separately to the construction of the Improvements. YLWD and Shapell shall be identified as named or additional insureds on all insurance policies, except E &O insurance and workers compensation and employer's liability insurance, and Shapell shall provide certificates evidencing the same prior to its award of a contract for work on the Improvements. All workers compensation and employer's liability insurance carriers shall waive rights of subrogation against YLWD and Shapell, and Shapell shall provide certificates evidencing the same prior to its award of a contract for work on the Improvements. Each insurance policy shall provide coverage until: (a) preparation, execution and recordation of the Notice of Completion described in Section IV.A., (b) execution and delivery of the Bill of Sale described in Section IV.A., (c) execution and delivery of any document required to transfer the Improvements to YLWD and (d) acceptance of the Bill of Sale and the Improvements by YLWD. In the alternative, the policy may provide coverage on a "claims made basis" and shall continue in effect for four years after completion of the Improvements as described in the foregoing sentence. For any claim related to the Improvements, the insurance by the construction contractor or construction consultant shall be primary insurance, and any insurance coverage maintained by YLWD shall not contribute to such a claim. The insurance policies shall be endorsed to state that coverage shall not be canceled except after 30 days prior written notice by U.S. mail has been given to YLWD. All insurance policies shall have an A.M. Best rating (or equivalent) of not less than A -. All insurance policy limits or requirements may be waived or revised upon mutual, written consent of YLWD and Shapell. G. Indemnity Shapell shall require each construction contractor retained by Shapell providing construction services for the Improvements agree in writing to fully defend, indemnify and hold harmless YLWD and Shapell, and their respective officers, directors, employees, successors and assigns, from and against any and all 2/04/09 5 Claims for property damage, personal injury, or death arising out of the construction work performed by said construction contractor, except for Claims caused by the active negligence or willful misconduct of YLWD or Shapell, respectively. Shapell also shall require any such construction contractor to fully defend, indemnify and hold harmless YLWD and Shapell from any and all liabilities, forfeitures or penalties arising from such contractor's violations of any federal, state or local statute, rule or regulation, except to the extent such liabilities, forfeitures or penalties are caused by the active negligence or willful misconduct of YLWD or Shapell, respectively. Each construction contractor shall require any subcontractor to agree in writing to indemnify to YLWD and Shapell as specified herein. Shapell shall require each construction consultant retained by Shapell providing professional services for the Improvements, including professional engineers, inspectors and other licensed professionals, to agree in writing to defend, indemnify and hold harmless YLWD and Shapell, and their respective officers, directors, employees, successors and assigns, from and against any and all Claims for property damage, personal injury, or death arising out of their provision of professional services for the Improvements, to the extent caused by their negligence, errors or omissions, or other misconduct, except for Claims caused by the active negligence or willful misconduct of YLWD or Shapell, respectively. Shapell also shall require any such construction consultant to fully defend, indemnify and hold harmless YLWD and Shapell from any and all liabilities, forfeitures or penalties arising from such consultant's violations of any federal, state or local statute, rule or regulation, except to the extent such liabilities, forfeitures or penalties are caused by the active negligence or willful misconduct of YLWD or Shapell, respectively. Shapell also agrees to fully defend, indemnify and hold harmless YLWD from any and all liabilities, forfeitures or penalties arising from any person or entity's violation of any federal, state or local statute, rule or regulation, provided that the acts or omissions that result in the liability relate to or arise out of construction of the Improvements, except to the extent such liabilities, forfeitures or penalties are 2/04/09 6 caused by the active negligence or willful misconduct of YLWD, its agents or its consultants. Any person or entity providing defense or indemnity as specified herein shall promptly defend YLWD and /or Shapell at its own cost, including payment of all attorneys' fees, costs and litigation expenses. Any person or entity providing defense or indemnity as specified herein shall promptly pay any judgment, settlement, award, decree, fine or penalty assessed against YLWD and /or Shapell at their own cost. Any person or entity providing defense and indemnity as specified herein shall reimburse YLWD and /or Shapell for any and all legal expenses and costs incurred in enforcing the defense and indemnity required herein. The indemnification provided herein shall survive the termination or end of this Agreement. H. Public Works Laws Shapell and each of Shapell's contractors and subcontractors shall comply with all applicable Public Works and California labor standards required under California laws. Shapell shall defend, indemnify and hold YLWD, its officers, agents, employees and engineers harmless from any expense or liability which may arise or is claimed to have arisen as a result of allegations of violation of applicable Public Works and California labor standards required under California laws. III. PARTIAL REIMBURSEMENT /CONSTRUCTION COSTS A. Construction Shares Shapell's share of the Construction Costs shall be Forty One and Three Tenths Percent (41.3 %).i YLWD's share of the Construction Costs shall be Fifty Eight and Seven Tenths Percent (58.7 %). B. Reimbursement /Timing YLWD shall reimburse Shapell for YLWD's Fifty Eight and Seven Tenths Percent (58.7 %) share of the Construction Costs as documentation is received from Shapell. Reimbursement requests for Construction Costs to YLWD must be substantiated with invoices, receipts and payment records for the Construction Costs. YLWD's reimbursement to Shapell shall occur within twenty (20) working 2/04/09 7 days of YLWD's receipt of the aforementioned documentation for the Construction Costs. Provided, however, that the twenty working -day time period shall be tolled during any dispute regarding the sufficiency of the documentation submitted by Shapell for reimbursement. C. Change Orders The reimbursement amount to Shapell, if any, for work conducted pursuant to a change order shall be at the rate agreed upon for each respective change order pursuant to the procedure set forth in Section II.B above. IV. COMPLETION OF IMPROVEMENTS A. Notice of Completion Upon completion of the construction of the Improvements and written acceptance by YLWD, a Notice of Completion shall be prepared and signed by Shapell and recorded with the County Recorder's Office of Orange County, California. Shapell shall thereupon execute and deliver a proper Bill of Sale, on the standard form of YLWD for the Improvements constructed therewith to YLWD its successors and assigns. The Bill of Sale shall include a final statement reasonably substantiated with invoices and receipts of the total Improvements' costs. B. Acceptance of Improvements YLWD agrees to accept the Improvements when they have been completed by Shapell in accordance with the plans and specifications approved by YLWD and upon the submittal of a proper Bill of Sale to YLWD. Acceptance by YLWD of the Improvements shall not be unreasonably withheld. It is also understood and agreed that upon YLWD's acceptance Shapell disclaims in favor of YLWD all right, title and interest in and to the Improvements constructed pursuant to this Agreement and that Shapell hereby covenants and agrees to execute and deliver to YLWD any documents required to complete the transfer of the Improvements concurrently with the acceptance thereof by YLWD. Shapell acknowledges Shapell's obligation to complete the Improvements and transfer the same to YLWD. ' "Construction Costs" shall mean the costs for the work discussed in Section H.A. 2/04/09 8 C. Lien Waiver and Release Shapell agrees that upon final payment to the Contractor after the date of recording of the Notice of Completion with the County Recorder, Shapell will obtain from the Contractor a Lien Waiver and Release in favor of Shapell and YLWD and that the original of said Lien Waiver and Release shall be delivered to YLWD. D. Transfer of Work Responsibility In the event that Shapell is unwilling or unable to comply with the terms and obligations of this Agreement, it may, by providing ten (10) days written notice to YLWD, request a meeting with YLWD to ascertain whether Shapell may be relieved of its obligations under this Agreement in exchange for a one -time cash payment to YLWD sufficient to complete the work contemplated under this Agreement. YLWD and Shapell shall meet within ten (10) days of the receipt of the notice by YLWD, or as soon as practical thereafter. At the meeting, YLWD and Shapell shall ascertain what portion of the work contemplated under this Agreement must reasonably be required to be completed in order to leave the Booster Station site in an operational and presentable condition and whether Shapell may be relieved of its obligations under this Agreement in exchange for a one -time cash payment to YLWD sufficient to complete said work. Any agreement as to the amount of the one -time cash payment or the terms under which Shapell shall be relieved of its obligations under this Agreement is contingent on and must be approved by YLWD's Board of Directors. Nothing in this Section IV.D shall be interpreted to relieve Shapell of its obligations under this Agreement during the discussion contemplated in this Section IV.D and Shapell is obligated to continue to perform under the terms of this Agreement until and unless it is relieved of its obligations by YLWD as set forth in this Section IV.D. V. GENERAL PROVISIONS A. Accounting YLWD may commingle any advance of funds by Shapell with other funds of YLWD for the purposes of deposit and /or investment. YLWD shall separately 2/04/09 9 account for the expenditures of each advance of funds by Shapell and shall provide an annual accounting of same to Shapell. B. Construction This Agreement shall be governed by the laws of the State of California and construed according to its plain meaning as if drafted by both owner and YLWD. C. Integration This Agreement is a fully integrated contract constituting the entire understanding between YLWD and Shapell with respect to the matters set forth herein. No prior oral or written understanding shall be of any force or effect with respect to the matter set forth in this Agreement. This Agreement constitutes the entire understanding between YLWD and the Shapell with respect to the matters set forth herein. No oral order, objection, claim or notice by any party to this Agreement shall affect or modify any of the terms or obligations contained herein except by a waiver or modification thereof in writing and signed by the authorized representative of YLWD and Shapell, or their authorized successors. D. Amendment This Agreement may be amended only in writing which must be executed by each party to its successor. E. Successors and Assigns All of the terms, conditions and provisions of this Agreement shall inure to the benefit of and be binding upon YLWD, Shapell, and their respective successors and assigns. Neither party may assign its rights or delegate its obligations or duties hereunder, in whole or in part, without the express written consent of the other party, which consent shall not be unreasonably withheld, based upon reasonable demonstration of the assignee's capacity to carry out the obligations assigned. F. Notice Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered or seventy -two (72) hours after deposit of same in any United States Post Office, registered or certified, postage prepaid, addressed as follows: 2/04/09 10 (a) SHAPELL INDUSTRIES INC., 22800 Savi Ranch Pkwy, Suite 100, Yorba Linda, California 92887 Attn: Curt Thielbar. (b) YORBA LINDA WATER DISTRICT, P.O. Box 309, Yorba Linda, California 92885 -0309, Attn: General Manager. Each party can change its address for delivery of notice by delivering written notice of such change of address to the other party within twenty (20) days of such change. G. Binding Arbitration At the election of YLWD within thirty -six (36) days after service upon YLWD of a civil action, YLWD may elect to submit this matter to binding arbitration before the Judicial Arbitration and Mediation Services (JAMS), located in Orange County. Upon submission of the matter to JAMS, it shall be the obligation of YLWD's to obtain from JAMS a list of three (3) randomly selected arbitrators familiar with construction law and to serve said list upon the Shapell. In the event that there are more than two parties to the action, the number of arbitrators randomly selected and included in the list shall be increased by two for each additional party involved. Upon service of the randomly selected list of JAMS arbitrators, each party shall have twenty (20) days to eliminate two arbitrators from the list and return the list to the JAMS office. The arbitrator selected for the arbitration shall be the remaining name on the list. Should more than one name remain on the list, the JAMS office will randomly select from the names remaining on the list, which individual will serve as arbitrator. Arbitration shall be scheduled for hearing on the merits no later than six (6) months after the date the arbitrator is selected. All parties shall be permitted to conduct discovery as provided by the current rules contained in the California Code of Civil Procedure. All costs of JAMS or of the arbitrator for services shall be divided equally among the Parties, unless otherwise ordered by the arbitrator. In an arbitration to resolve a dispute under this provision, the arbitrator's award shall be supported by law and substantial evidence. 2/04/09 11 H. Severability If any part of this Agreement is held to be illegal or unenforceable by a Court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible. I. Counterparts This Agreement and any document required to be executed by the Parties hereunder may be executed in several counterparts, each of which shall be deemed and all of which shall together constitute, one and the same agreement or document. IN WITNESS WHEREOF, The Parties have caused this Agreement to be executed on the day and year first herein above written. YORBA LINDA WATER DISTRICT, SHAPELL INDUSTRIES, INC., a local public agency a Delaware Corporation By: By: John Summerfield President Kenneth R. Vecchiarelli Secretary As to Form: By: McCormick, Kidman & Behrens, LLP By Arthur G. Kidman General Counsel 2/04/09 12 TBD Vice President By: Margaret Leong Vice President RM By Legal Counsel to Shapell Industries, Inc. Meeting Date: To: From: Presented By: Prepared By: Subject: SUMMARY: AGENDA REPORT May 28, 2009 Board of Directors Ken Vecchiarelli, General Manager Steve Conklin, Engineering Manager Budgeted: Total Budget: Cost Estimate: Funding Source: Account No: Job No: Dept: Reviewed by Legal: Scott Moulton, Consultant CEQA Compliance: Frontage Fees for Grandview Sewer Extension ITEM NO. 7.2 Yes $250,000 $285,000 Sewer Operating Fund 2012700 200407 Engineering Yes N/A The Grandview Sewer Extension, a District funded sewer construction project, was completed in 2007 at a cost considerably higher than was originally estimated in 2004. This project was one component of a much larger construction project, which included several sewer and water pipeline replacements and upgrades. The District realized an excellent cost savings overall in the combined projects. Five homeowners who had paid an initial deposit toward the design and administration costs of the Grandview Sewer Extension and were participating in the project initially, were disenfranchised at the higher construction costs and longer interested in paying to connect at the final costs incurred by the District. With the lack of voluntary participation in this project and in response to repeated requests by the property owners on Grandview that front this sewer, staff has identified options for cost recovery and prepared a recommendation for the Board's consideration. Once approved, the frontage fees for this project will establish the basis for invoicing one property owner that has connected without permission and will be billed for all fees that are past due. Furthermore, with stronger cost incentives, other property owners on Grandview Avenue may seek to connect to the sewer sooner, thereby reimbursing some of the District's costs for this project. STAFF RECOMMENDATION: That the Board of Directors authorize a one -time exemption to the District's Rules and Regulations for Sewer Service and establish an adjusted frontage fee charge for the Grandview Sewer Extension, in the amount of $15,767. COMMITTEE RECOMMENDATION: The Planning- Engineering- Operations Committee discussed this item and recommends that the Board authorize the President and Secretary to approve a one -time exemption to the District's Rules and Regulations for Sewer Service and set an adjusted frontage fee charge for the Grandview Sewer Extension at $15,767 for each of the 10 properties served. DISCUSSION: In 2007, the District constructed a 550 -foot extension of the sewer main in Grandview Avenue with lateral connections that can serve 10 properties. The construction cost of $285,121 was twice the estimate that was forecasted in February 2004. To get the project started, five homeowners deposited $1,779 each as their portion of the design and administration fee in January 2005, and the District covered the remaining cost in anticipation of future reimbursements. Exhibit A showing the project limits and the initial participants is attached. The homeowners that expressed interest in the project initially were no longer interested in connecting after construction was completed due to the substantially higher costs per connection. Both the construction and the other standard agency fees have risen considerably while property values have depreciated since the start of this project. Originally, five homeowners agreed to participate in the construction project in February 2004 when the estimate for construction was $12,555 each. Some homeowners continue to request that they be charged based on the original "estimated cost" of $12,555 per residence; however, this was never guaranteed by the District. Legal counsel has reviewed this matter and concluded there was no guarantee stated or implied regarding the final cost. The construction cost estimate was updated in January 2005 to $15,767 per resident when the initial design and administration fee deposits were collected from five residents confirming their participation in the project with the higher estimate of $15,767. Based on the final construction cost in 2007, the actual cost per residence would be $28,512 for the frontage fee portion of their connection charges. This fee includes the combined design, construction, inspection and administration costs for the project. In addition to a prorated share of the construction costs for the sewer main and for the property laterals within the public right of way, each property owner will incur additional expenses to permit their sewer connection and to abandon their existing septic systems. These include construction costs for the septic system abandonment and for the building lateral from the home or septic lines to the street connection point; other standard fees due YLWD; fees collected by other agencies including the Orange County Sanitation District and the City of Yorba Linda. Other than the standard YLWD fees, these other costs and fees are outside the District's control. Staff estimates these cost may be as high as $18,500 per connection. Concerning the construction cost for the sewer main, it is a sunk cost for the District since it has already paid for this capital improvement. However, until properties connect willingly or are forced to connect due to existing and /or future changes to our rules and regulations or their own site improvements, the District will not see any of this money reimbursed. The District has the authority to charge each resident their proportionate share of the full construction cost; however, it may be years until property values appreciate again to the point where these connection costs may be justified by property value appreciation. As an alternative, the cost per residence can be adjusted down closer in approximation to other recent sewer construction projects to provide incentives to connect. This could result in partial recovery of the construction cost sooner and partial settlement of outstanding issues with the property owners on Grandview. With this goal in mind staff presents the following options for consideration: Option 1 Actual Cost $28,512 Option 2 Adjusted Overhead Cost (Note 1) $25,020 Option 3 One -time Cost Adjustment (Note 2) $15,767 Option 4 Buena Vista Cost (Note 3) $16,242 Option 5 Average Costs (Note 4) $14,616 (1) Adjusted Overhead Cost is the actual cost minus all contractor -based indirect overheads that are were charged to the project. This removes any debate that the allocation method used was higher because the project was lumped together with a much larger project in a high traffic area (i.e. Kellogg Drive Sewer Improvements). (2) One -time Costs Adjustment takes the estimated construction cost at the time participants willing placed a deposit down formally declaring their interest in the project, which was $15,767 each. (3) Buena Vista Cost assumes the cost is equal to the unit cost for a recent, nearby sewer project performed under similar traffic, site and neighborhood conditions. (4) Average Costs assumes the unit cost is equal to the average of the ten most recent sewer construction projects (This is our standard procedure for charging frontage fees on older sewer projects where costs for connections may have been substantially lower for participants that opted in at the time projects were initiated.) This would not apply to this project since the District completely funded the construction and this number is provided for reference. Staff recommends Option 3 as a viable settlement alternative. The recommendation presented is only applicable to the District's Frontage Fees for this project and does not affect other agency and connection costs that will also have to be borne by each resident. All options are shown in Exhibit B, which also highlights the estimated full cost to connect for each customer. Another issue related to this project is that one property owner on Grandview Avenue made an unpermitted connection to the new sewer without District approval in February 2007, and has never paid construction and connection fees that are due. This resident had initially expressed a participating interest in the project in 2004, but never paid their share of the design and administration deposit in 2005, and therefore was not a confirmed participant financially. Staff will invoice this property owner for all fees that are past due once the Board has approved a frontage fee for the project. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approved participation in the administration, design, financing and construction of the Grandview Avenue Sewer Extension and authorized the General Manager to execute a Consultants Agreement with Hall & Foreman, Inc. for engineering design, surveying and construction management services for this project, Job No. 0407 on March 25, 2004. The Board of Directors approved the Cast Iron Replacement Project, Job No. 0515 on June 8, 2006. The Cast Iron Replacement Project combined five projects including the Grandview Sewer Extension into one contract with Vido Artukovich & Sons. ATTACHMENTS: Description: Type: Exhibit A.pdf Exhibit A Exhibit Exhibit B.pdf Exhibit B Exhibit Q/ NTq / / �, I �Fk 8„ / 5521 FLYNNIPATRICK F *40/ 348- 29 5512 1 -23� / PROJECT 0.27 /AC/ GRANGE RAYMOND / 348 - 371 -01 BOUNDARY / 0.45 AC 5531 LARSON LEES / 348 - 291 -24 / 0.27 AC 5551 - MAROVIC ANTHONY 348 - 291 -25 0.27 AC 5571/// /GUNTHE 3291 /26/ :27 AG71, ///5581 /// HOW,DENNI &E 348 =291 27/ //0.29 AC�� 5601 FELGEMAKER WILLIAM J 348 - 291 -28 0.38 AC PREPARED BY: YL Illm mill EZ,F AMOf i Q'Q 7'1 'n'n / LOCATION MAP YORBA LINDA WATER DISTRICT 1717 E. MIRALOMA AVENUE PLACENTIA, CALIFORNIA 92870 (714) 701 -3000 71=47 5532 HELFRICH JAMES R 348 - 371 -02 0.46 AC N LEGEND ® Participants Who Paid Design Fee Deposit 8" SEWER MAIN & LATERALS GRANDVIEW SEWER EXTENSION SCALE: NO SCALE DATE: 5/14/2009 FILENAME: J -0407 Costs assessed by other agencies, subject to change and variability depending on specifics of lot, and other issues outside of the control of YLWD. EXHIBIT B GRANDVIEW SEWER COST ALTERNATIVES OPTION 1 OPTION 2 OPTION 3 OPTION 4 OPTION 5 ADJUSTED ONE -TIME BUENA VISTA OVERHEAD ADJUSTED COST AVERAGE COST ACTUAL COSTS COST COST EQUILVALENT EQUIVALENT CONSTRUCTION COST $28,512 $25,020 $15,767 $16,242 $14,616 DESIGN COST $1,610 $1,610 $1,610 $1,610 $1,610 OTHER YLWD AVG ACRE $1,814 $1,814 $1,814 $1,814 $1,814 TOTAL $31,936 $28,444 $19,191 $19,666 $18,040 DISCOUNT OF CONSTRUCTION COST $0 $3,492 $12,745 $12,270 $13,896 DISCOUNT ( %) $0 12% 45% 43% 49% Estimate of Other Costs $15,000 $15,000 $15,000 $15,000 $15,000 TOTAL $46,936 $43,444 $34,191 $34,666 $33,040 Costs assessed by other agencies, subject to change and variability depending on specifics of lot, and other issues outside of the control of YLWD. AGENDA REPORT Meeting Date: May 28, 2009 To: Board of Directors From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Manager Budgeted: Total Budget: Cost Estimate: Funding Source: Account No: Dept: ITEM NO. 7.3 Yes $10,900 $6,500 Water Operating Fund 124580 Administration Reviewed by Legal: N/A Prepared By: Cindy Botts, Management CEQA Compliance: N/A Analyst Subject: 2009 Consumer Confidence Report SUMMARY: Yorba Linda Water District will work with InfoSend, our current water bill mailer, to print and mail the 2009 Consumer Confidence Report. This report is a standard water quality assessment and will be printed into a pamphlet that will be placed into customer water bills. STAFF RECOMMENDATION: That the Board of Directors approve the 2009 Consumer Confidence Report for distribution to all District customers. DISCUSSION: In having InfoSend both print and mail the 2009 Consumer Confidence Report, the estimated cost of the project is approximaely 60% of what was budgeted for this fiscal year. This is primarily due to the reduction of mailing costs as there was no additional postage required to include the report in with the bill. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors has approved the Consumer Confidence Report annually since 1989. ATTACHMENTS: Description: Type: 2009 CCR.doc 2009 Consumer Confidence Report Backup Material Yorba Linda Water District 2009 Consumer Confidence Report Last year, as in years past, your tap water met all Environmental Protection Agency (EPA), and State drinking water health standards. Yorba Linda Water District vigilantly safeguards its water supplies, and once again we are proud to report that our water system has never violated a water quality standard. This Consumer Confidence Report covers water quality data collected during the period from January to December 2008. Esta informacion es importante. Por favor pidale a alguien que se la traduzea. (This information is important. Please have someone translate it for you.) Water System Information Yorba Linda Water District is an independent special district that provides water and sewer service to most of the City of Yorba Linda and to portions of Anaheim, Brea, Placentia and unincorporated Orange County. For more information about the District or your water service, please call Management Analyst Cindy Botts, at 714 701 -3024 or Water Quality Engineer Leon de los Reyes at 714 - 701 -3115. The Yorba Linda Water District Board of Directors' regularly scheduled meetings are held on the second and fourth Thursday of each month at 8:30 a.m. in the District boardroom located at 1717 E. Miraloma Avenue, Placentia, California 92870. Sources of Water Sources of drinking water (both public tap water and bottled water) include rivers, lakes, streams, ponds, reservoirs, springs, and groundwater. As water travels over the surface of the land or through the ground, it dissolves naturally occurring minerals and, in some cases, radioactive material. Water also picks up substances resulting from the presence of animals or from human activity. Drinking water, including bottled water, may reasonably be expected to contain at least small amounts of some contaminants. The presence of contaminants does not necessarily indicate that water poses a health risk. More information about contaminants and potential health effects can be obtained by calling the EPA's Safe Drinking Water Hotline at 1- 800 - 426 -4791 or by accessing the EPA's internet web site at www.epa.gov /safewater. Local Groundwater Yorba Linda Water District obtains approximately half of its water supplies from properly constructed wells located within the District. The District's wells tap an underground aquifer that underlies most of northern Orange County. The aquifer is carefully managed by the Orange County Water District, and is replenished by water from the Santa Ana River, local rainfall, and water purchased from imported sources. The District's groundwater sources include: Well No. 1, Well No. 5, Well No. 7, Well No. 10, Well No. 12, Well No. 18, Well No. 19, which are located within Placentia city limits; and Well No. 11 and Well No. 15, which are located within Anaheim city limits. Imported Water Yorba Linda Water District obtains the remainder of the water our customers need from local wholesaler Municipal Water District of Orange County ( MWDOC). MWDOC obtains water from regional supplier Metropolitan Water District of Southern California (MWD). MWD obtains water from northern California via the California Aqueduct, and from the Colorado River via the Colorado River Aqueduct. MWD owns and operates the Robert B. Diemer water treatment plant located just north of western Yorba Linda where the water is treated to meet drinking water standards. Vulnerability Assessment of Potential Sources of Contamination A vulnerability assessment of local drinking water sources of the Richfield Plant wellfield (Wells No. 1, 5, 7, 10, and 12) for the District was completed in January 1999. These sources are considered most vulnerable to contaminants produced by the following activities: gas stations; dry cleaners; metal plating /finishing/fabricating plants; plastic /synthetic producers; underground injection of commercial /industrial discharges; underground storage tanks; agricultural drainage; fertilization, pesticide and herbicide application; automobile -body and repair shops; and chemical /petroleum processing /storage. In December 2002, Metropolitan Water District of Southern California (MWD) completed a source water assessment of its Colorado River and State Water Project supplies. Colorado River supplies are considered to be most vulnerable to contamination by recreation uses, urban /storm water runoff, industrial runoff, increasing urbanization in the watershed and wastewater contamination. State Water Project supplies are considered to be most vulnerable to urban /storm water runoff, and wildlife, agriculture, recreation and wastewater contamination. Vulnerability assessments of potential sources of contamination for Wells 11 and 15 were completed in April 2003. These groundwater sources are considered most vulnerable to the following activities not associated with detected contaminants: chemical /petroleum processing/storage; metal plating /finishing/fabricating; and plastics /synthetics production. A vulnerability assessment of potential sources of contamination for Well 19 and Well 18 were completed in May 2004 and September 2005, respectively. The groundwater sources are considered most vulnerable to the following activities not associated with detected contaminants: gas stations; dry cleaners; metal plating/finishing/fabricating plants; plastic /synthetic producers; underground injection of commercial /industrial discharges; underground storage tanks; agricultural drainage; fertilization, pesticide and herbicide application; automobile -body and repair shops; sewer collection systems; food processing, and chemical /petroleum processing/storage. A copy of the complete assessment is available at Department Public of Health district office at 605 West Santa Ana Blvd., Building 28, Room 325, Santa Ana, CA 92701, or by contacting Water Quality Engineer Leon de los Reyes at (714) 701 -3115. 2 Contaminants That May Be Present In Source Water • Microbial contaminants, such as viruses and bacteria, which may come from sewage treatment plants, septic systems, agricultural livestock operations, and wildlife. Cryptosporidium is a microscopic organism that when ingested can cause diarrhea, fever, and other gastrointestinal maladies. The organism comes from animal and /or human waste and may be found in surface (imported) water. A standard treatment process that includes sedimentation, filtration, and disinfection can eliminate cryptosporidium contamination. • Pesticides and herbicides that may come from a variety of sources such as agriculture, urban storm water runoff and residential uses. • Inorganic contaminants, such as salts and metals that can be naturally occurring or result from urban storm water runoff, industrial or domestic wastewater discharges, oil and gas production, mining or farming. • Organic chemical contaminants, including synthetic and volatile organic chemicals that are by- products of industrial processes and petroleum production, and can also come from gas stations, urban storm water runoff, agricultural application and septic systems. • Radioactive contaminants that can be naturally occurring or be the result of oil and gas production and mining activities. Special Risk Populations Some individuals may be more vulnerable to the effects of possible contaminants in drinking water than the general population. Persons who are undergoing chemotherapy, persons who have undergone organ transplants, some elderly persons, infants, persons infected with HIV/AIDS, or persons with other immune system disorders can be particularly at risk. These persons should seek advice from their health care providers about drinking water. The USEPA /Center for Disease Control guidelines on appropriate means to lessen the risks of infection by cryptosporidium or other microbial contaminants are available from the Safe Drinking Water Hotline (1- 800 - 426- 4791). Fluoride Yorba Linda Water District does not add fluoride to its groundwater supplies. Naturally occurring fluoride is present in the well water, but not at a level that provides dental health benefits. In 1995, the California Legislature passed a bill mandating that all large water agencies fluoridate their supplies, but only if the state or "somebody" provided the agencies with the funds to do so. To date, the state has not come up with the funds to implement fluoridation. Metropolitan Water District of Southern California (MWDSC) commenced fluoridation of southern California's drinking water supplies in November of 2007. YLWD purchases approximately half of its water from MWDSC. Because of MWD's decision and YLWD's dual sources of water (groundwater and import), the District is faced with a situation where some of its customers will get water fluoridated by MWD, some will get non - fluoridated water, and some will get a blend of fluoridated and non - fluoridated water. 3 If you need to know the approximate level of fluoride in your tap water, or specific water service area, please call Leon de los Reyes, Water Quality Engineer, at 714 701 -3115. Additional information about the fluoridation of drinking water can be found through the following sources: • U.S, Centers for Disease Control and Prevention, 1- 888 - CDC -2306 www.cdc.gov/Oralhealth/factsheet/fl-background.html • American Dental Association www.ada.org/public/topics/fluoride/fluor-links.html • American Water Works Association www.awwa.org Terms and Abbreviations • Public Health Goals (PHG): The level of the contaminant in drinking water below which there is no known or expected risk to health including individuals with special health care needs. The California Environmental Protection Agency sets PHGs. The District prepared and held a public hearing of its Public Health Goals Report on July 1998, 2001, 2004, and 2007. The next PHG report is due on July 2010. • Maximum Contaminant Level Goal (MCLG): The level of a contaminant in drinking water below which there is known or expected risk to health. The U.S. Environmental Protection Agency sets MCLGs. • Maximum Contaminant Level (MCL): The highest level of a contaminant that is allowed in drinking water. Primary MCLs are set as close to the PHGs (or MCLGs) as is economically and technologically feasible. Secondary MCLs are set to protect the odor, taste, and appearance of drinking water. • Maximum Residual Disinfectant Level (MRDL): The level of a disinfectant added for water treatment that may not be exceeded at the consumer's tap. • Maximum Residual Disinfectant Level Goal (MRDLG): The level of a disinfectant added for water treatment below which there is no known or expected risk to health. MRDLs are set by the U.S. Environmental Protection Agency. • Primary Drinking Water Standard or PDWS: MCLs and MRDLs for contaminant that affect health along with their monitoring and reporting requirements, and water treatment techniques. • Treatment Technique (TT): A required process intended to reduce the level of contaminants in drinking water. • Notification Level (NL): The concentration of a contaminant which, when exceeded, triggers a treatment process or other requirements that a water system must follow. • N /A: not applicable • ND: not detectable • NS: no standard has been established • ppm: parts per million or milligrams per liter • ppb: parts per billion or micrograms per liter • ppt: parts per trillion or nanograms per liter • pCi/L: picoCuries per liter (a measure of radiation) • NTU: nephelometric turbidity units • gpg: grains per gallon (a measure of water hardness) 4 Measurements Most of the contaminants are measured in parts per million (ppm), parts per billion (ppb), and parts per trillion. If these are difficult to envision, these are the comparisons: Parts per million: Parts per billion: Parts per trillion: 1 second in 12 days 1 second in 32 years 10 drops in a Rose Bowl -sized pool 1 penny in $10,000 1 penny in $10 million 1- second in 32,000 years 1 inch in 16 miles 1 inch in 16,000 miles 1 inch in 16 million miles In order to ensure that tap water is safe to drink, EPA and CDPH prescribes regulations that limit the amount of certain contaminants in water provided by public water systems. The table below lists all the drinking water contaminants that Yorba Linda Water District detected during the 2008 calendar year. The presence of these contaminants in the water does not necessarily indicate that the water poses a health risk. Unless otherwise noted, the data presented in this table is from testing done for the period January 1 through December 31, 2008. The California Department of Public Health requires monitoring for certain contaminants less often than every year because the concentrations of these contaminants are not expected to vary significantly from year to year. Thus, some of the data, though representative of current water quality, is more than one year old. YLWD contracts with state certified, independent laboratories to perform most of the District's water quality testing. Water Distribution System Water Quality (Ground and Import Water Sources) Highest [Locational] PHG Running Typical Disinfection MCL (MCLG) Annual Most Recent Source in Bv- Products [MRDLI [MRDLGI Average Ranee Samnlin2 Date Violation Drinkinjj water Total Trihalomethanes (TTHMs) (ppb) 80 N/A 38 14-58 2008 NO by- product of drinking water disinfection Haloacetic Acids (HAAS) (ppb) 60 N/A 12 3 -23 2008 NO by- product of disinfection Stage -2 D/DBP 2 Total Trihalomethanes (TTHMs) (ppb) 80 N/A [54] 5-54 2007 -08 NO by- product of drinking water disinfection Stage -2 D/DBP 2 Haloacetic Acids (HAAS) (ppb) 60 N/A [17] 2-17 2007 -08 NO by- product of drinking water disinfection Total Chlorine (ppm) [4 as Clzi] [4 as Clzi] 1.6 1.40-1.81 2008 NO drinking water disinfectant added for treatment 'As chlorine (Clz) 2 Stage -2 Disinfectants and Disinfection By- Product Rule 5 About Chloramines and Free Chlorine: These disinfectants must be removed from water used in hemodialysis treatment. Water used for dialysis machines must meet standards established by the Association for the Advancement of Medical Instrumentation. A good source of information, in addition to your health care provider, is the Southern California Renal Disease Council at (213) 962 -2020. In addition, they must be removed from water before it is used to fill or replenish aquariums and fish ponds. For more information, contact your local pet store. NOTE: On November IS, 2008, due to significant loss of'water pressure in the Hidden Hills Estates area during the height of the Freeway Complex Fire, YLWD issued a Boil Water Advisory. This step was taken as a precautionary measure to protect that particular affected area against potential microbiological contamination of'the drinking water system, and in compliance with California Department of 'Pub &c Health requirements. After conducting multiple sampling and review of'water quality analyses taken within the Hidden Hills Estates area, it was determined on November 20, 2008, that the drinking water met microbiological standards and was safe for consumption and domestic use. Subsequently, the Boil WaterAdvisory was cancelled Lead & Copper Levels at Residential Taps NL 90th Percentile PHG Values Highest Percentage Typical Typical Source in Drinking Water PHG Total Coliform- Presence Most Recent Source in Microbiological MCL (MCLG) in a Monthlv Sample Sample Date Violation Drinking Water Total Coliform 5% (0) 0.66% 2008 NO naturally present in the (Non -Fecal Coliform) environment NOTE: On November IS, 2008, due to significant loss of'water pressure in the Hidden Hills Estates area during the height of the Freeway Complex Fire, YLWD issued a Boil Water Advisory. This step was taken as a precautionary measure to protect that particular affected area against potential microbiological contamination of'the drinking water system, and in compliance with California Department of 'Pub &c Health requirements. After conducting multiple sampling and review of'water quality analyses taken within the Hidden Hills Estates area, it was determined on November 20, 2008, that the drinking water met microbiological standards and was safe for consumption and domestic use. Subsequently, the Boil WaterAdvisory was cancelled Lead & Copper Levels at Residential Taps NL 90th Percentile PHG Values Sites Exceeding NL Sample Most Recent Sample Date Violation Typical Source in Drinking Water Lead (ppb) 15 2 6 None 2006 NO internal corrosion of household water plumbing system; discharges from industrial manufacturers, erosion of natural deposits Copper (ppm) 1.3 0.3 0.21 None 2006 NO internal corrosion of household water plumbing system; discharges from industrial manufacturers, erosion of natural deposits Most Recent Typical Source in Aesthetic OualitV Secondary MCL Average Range Sample Date Violation Drinking Water Color, units 15 ND ND < 5 2008 NO naturally occurring organic materials Odor - Threshold 3 ND ND < 1 2008 NO naturally occurring organic materials Turbidity, NTU 5 0.21 0.14-1.14 2008 NO total suspended solids Primary Standards (Groundwater Sources PHG Average Range Most Recent Typical Source in Radio nuclides MCL (MCLG) Amount Detected Sample Date Violation Drinking Water Gross Alpha (pCi/L) 15 (0) 9 6— 13 2008 NO erosion of natural deposits Uranium (pCi/L) 20 0.43 8 5-12 2008 NO erosion of natural deposits Total Radon (pCi/L) NS NS 457 404-491 2008 N/A "see note below" (222) Total Radium (pCi/L) 5 0.019 0.1 0-2.3 2008 NO erosion of natural deposits (228) About Radon: Radon is a radioactive gas that you cannot see, taste, or smell. It is found throughout the world. Radon can move through the ground and into homes through cracks and holes in the foundation. Radon can build up to high levels in all types of homes. Radon can also get into indoor air when released from tap water from showering, washing dishes, and other household activities. Compared to radon entering the homes through soil, radon entering the home through tap water will, in most cases, be a minor source of radon in indoor air. Radon is a known human carcinogen. Breathing air containing radon can lead to lung cancer. Drinking water containing radon may also cause increased risk of stomach cancer. If you are concerned about radon, test the air in your home. Testing is inexpensive and easy. Fix your home if the level of radon in your air is 4 picoCuries per liter of air (pCi/L) or higher. There are simple ways to fix a radon problem that are not too costly. For additional information, you can call the EPA's Radon Hotline (800- SOS - Radon). rA PHG Average Range Most Recent Typical Source in Inorganic Chemicals MCL (MCLG) Amount Detected Sample Date Violation Drinking Water Arsenio (ppb) 10 0.004 4 ND —11 2008 NO erosion of natural deposits, runoff from orchard, glass and electronics production wastes Barium (ppb) 1000 2000 2.86 ND —103 2008 NO discharges of oil drilling waste, and from metal refineries, erosion of natural deposits Fluoride (ppm) 2 1 0.4 0.3 - 0.5 2008 NO erosion of natural deposits; water (naturally occurring) additive that promotes strong teeth; discharge from fertilizer and aluminum factories Nitrate (ppm) 45 45 12 9-16 2008 NO runoff and leaching from (as Nitrate, NO3) fertilizer use; leaching from septic tanks and sewage; erosion of natural deposits Nitrate plus Nitrite 10 10 3 2 - 4 2008 NO runoff and leaching from (as Nitrogen, N) (ppm) fertilizer use; leaching from septic tanks and sewage; erosion of natural deposits 3 The District has a California Department of Public Health approved blending plan that reduces the levels of arsenic and manganese in the water distribution system to within drinking water standards. PHG Average Range Most Recent Typical Source in Radio nuclides MCL (MCLG) Amount Detected Sample Date Violation Drinking Water Gross Alpha (pCi/L) 15 (0) 9 6— 13 2008 NO erosion of natural deposits Uranium (pCi/L) 20 0.43 8 5-12 2008 NO erosion of natural deposits Total Radon (pCi/L) NS NS 457 404-491 2008 N/A "see note below" (222) Total Radium (pCi/L) 5 0.019 0.1 0-2.3 2008 NO erosion of natural deposits (228) About Radon: Radon is a radioactive gas that you cannot see, taste, or smell. It is found throughout the world. Radon can move through the ground and into homes through cracks and holes in the foundation. Radon can build up to high levels in all types of homes. Radon can also get into indoor air when released from tap water from showering, washing dishes, and other household activities. Compared to radon entering the homes through soil, radon entering the home through tap water will, in most cases, be a minor source of radon in indoor air. Radon is a known human carcinogen. Breathing air containing radon can lead to lung cancer. Drinking water containing radon may also cause increased risk of stomach cancer. If you are concerned about radon, test the air in your home. Testing is inexpensive and easy. Fix your home if the level of radon in your air is 4 picoCuries per liter of air (pCi/L) or higher. There are simple ways to fix a radon problem that are not too costly. For additional information, you can call the EPA's Radon Hotline (800- SOS - Radon). rA The EPA proposed MCL for radon is 300 pCi/L. The proposal will provide states flexibility in how to limit exposure to radon by allowing states to focus its efforts on the greatest radon risks -those in indoor air -while also reducing the risks from radon in drinking water. The states' option for radon compliance is as follows: First Option: States can choose to develop enhanced state programs to address the health risks from radon in indoor air. These programs are known as Multimedia Mitigation (MMM) Programs. Individual water systems reduce radon levels in drinking water to 4,000 pCi/L or lower. EPA is encouraging states to adopt this option because it is the most cost effective way to achieve the greatest radon risk reduction. Second Option: If a state chooses not to develop an MMM program, individual water systems in that state would be required to either reduce radon in their system's drinking water to 300 pCi/L or develop individual local MMM programs and reduce levels in drinking water to 4,000 pCi/L. ReLyulated Constituents with Secondary Standards (Groundwater Sources Secondary Average Range Most Recent Typical Source in Constituent MCL Amount Detected Sample Date Violation Drinking Water Chloride (ppm) 500 105 102-108 2008 NO runoff/leaching from natural deposits, natural waste Chlorate (ppm) 0.8 0.06 ND — 0.11 seawater influence Color (units) 15 1 ND - 5 2008 NO naturally occurring organic materials Corrosivity Non - Corrosive Non - Corrosive 2008 NO elemental or industrially- influenced (Aggressiveness Index) balance of hydrogen, carbon, and oxygen in water; affected by temperature and other factors. Manganese (ppb) 50 12 ND — 131 2008 NO leaching from natural deposits Specific Conductance 1600 1016 984-1110 2008 NO substance that form ions when in water, (micromhos /cm) seawater influence Sulfate (ppm) 500 138 125-170 2008 NO runoff/leaching from natural deposit, industrial wastes Total Dissolved Solids 1000 620 582-680 2008 NO runoff/leaching from natural deposit (ppm) Turbidity (NTU) 5 Units 0.2 ND — 0.5 2008 NO soil runoff Zinc (ppb) 5000 12 ND — 161 2008 NO runoff/leaching from natural deposits; industrial waste 3 The District has a California Department of Public Health approved blending plan that reduces the levels of arsenic and manganese in the water distribution system to within drinking water standards. State ReLyulated Constituents without Standards (MCL) but Requires Monitorin (Groundwater Sources) Average Range Most Recent Typical Source in Constituent NL Amount Detected Sample Date Drinking Water Boron (ppb) 1,000 260 210-280 2008 run- off/leaching from natural deposits, natural waste Chlorate (ppm) 0.8 0.06 ND — 0.11 2008 disinfection by- products; industrial processes Vanadium (ppb) 50 5 3 - 8 2008 naturally occurring; industrial waste discharge Additional Water Oualitv Parameters (Groundwater Sources Average Range Most Recent Constituents Amount Detected Sample Date Alkalinity as CaCO3 NS 217 202 -239 2008 (ppm) Bromide (ppm) NS 0.23 0.15-0.39 2008 Calcium (ppm) NS 97 84-123 2008 I Hardness as CaCO3 NS 19 17-24 Range 2008 (grains per gallon, gpg) Typical Source in Inorganic Chemicals MCL (MCLG) Amount Magnesium (ppm) NS 21 18-25 Aluminum (ppb) 2008 Potassium (ppm) NS 5 4-8 2008 pH (acids /bases) NS 8 7.7-8.2 ND — 6.4 2008 Sodium (ppm) NS 92 83-99 0.43 2008 Water Quality Data of Imported Water Sources The table below lists all of the contaminants that the MWD detected during the 2008 calendar year. The presence of these contaminants in the water does not necessarily indicate that the water poses a health risk. Unless otherwise noted, the data presented in this table is from testing done January 1 through December 31, 2008. Primary Standards (Import Sources Fluoride (ppm) 2 1 0.8 0.6-0.9 2008 NO water additive for dental health (fluoridation levels) Nitrate (as N), ppm 10 10 0.5 ND — 0.6 2008 NO runoff and leaching from fertilizer use; septic tank and Sewage, natural deposit erosion PHG Average Range Most Recent Typical Source in Inorganic Chemicals MCL (MCLG) Amount Detected Sample Date Violation Drinking Water Aluminum (ppb) 1000 600 164 78-280 2008 NO erosion of natural deposit, Gross Beta (pCi/L) 50 (0) 4.3 ND — 6.4 2008 NO residual from surface water Uranium (pCi/L) 20 0.43 3.3 2.9-3.7 2008 NO treatment processes Arsenic (ppb) 10 0.004 2.4 ND — 2.9 2008 NO natural deposit erosion, glass and electronic production waste Barium, (ppb) 1000 2000 117 111-123 2008 NO oil and metal refineries discharge; natural deposits erosion Fluoride (ppm) 2 1 0.8 0.6-0.9 2008 NO water additive for dental health (fluoridation levels) Nitrate (as N), ppm 10 10 0.5 ND — 0.6 2008 NO runoff and leaching from fertilizer use; septic tank and Sewage, natural deposit erosion ReLyulated Constituents with Secondary Standards (Import Sources PHG Average Range Most Recent Typical Source in MCL (MCLG) Amount Detected Sample Date Violation Drinking Water Aluminum (ppb) 200 600 164 78-280 2008 NO erosion of natural deposit, residual from surface water treatment processes 10 PHG Average Range Most Recent Typical Source in Radionuclides MCL (MCLG) Amount Detected Sample Date Violation Drinking Water Gross Alpha (pCi /L) 15 (0) 5.6 3.8-9.3 2008 NO erosion of natural deposits Gross Beta (pCi/L) 50 (0) 4.3 ND — 6.4 2008 NO decay of natural and man -made Uranium (pCi/L) 20 0.43 3.3 2.9-3.7 2008 NO erosion of natural deposits ReLyulated Constituents with Secondary Standards (Import Sources PHG Average Range Most Recent Typical Source in MCL (MCLG) Amount Detected Sample Date Violation Drinking Water Aluminum (ppb) 200 600 164 78-280 2008 NO erosion of natural deposit, residual from surface water treatment processes 10 Chloride (ppm) 500 NS 96 92-103 2008 NO Color, Units 15 NS 2 1-2 2008 NO Corrosivity (Saturation Index) "non- corrosive" 0.46 0.38-0.50 2008 NO runoff and /or leaching from natural deposit, seawater influence naturally occurring organic material elemental balance in water, affected by temperature, other factors Corrosivity (Aggressiveness Index) "non- corrosive" 12.3 12.2-12.4 2008 NO elemental balance in water, affected by temperature, other factors Odor Threshold, Units 3 NS 2 2 2008 NO naturally organic material Specific Conductance (micromhos /cm) 1600 NS 947 837- 1080 2008 NO substance that form ions when in water; seawater influence Sulfate (ppm) 500 NS 212 170-272 2008 NO runoff and /or leaching from natural deposit; industrial waste Total Dissolved Solids 1000 NS 569 505-668 2008 NO runoff and /or leaching (ppm) from natural deposit; seawater influence Turbidity (NTU) 5 NS 0.05 0.04-0.05 2008 NO soil run -off State /Federal Regulated Constituents with No Standards (MCL) but Requires Monitoring (Import Sources) Average Range Most Recent NL Amount Detected Sample Date Typical Source in Drinking Water Boron (ppb) 1000 140 130-150 2008 runoff/leaching from natural deposits industrial wastes Chromium VI (ppb) NA 0.19 0.1-0.29 2008 industrial waste discharge; could be naturally present Vanadium (ppb) 50 3.8 3.5-3 2008 naturally occurring; industrial waste discharge Chlorate (ppb) 800 48 24-58 2008 by- product of drinking water chlorination, industrial Additional Water Quality Parameters (Import Sources) Average Range Most Recent Amount Detected Sample Date Comments Alkalinity (ppm) 110 100-121 2008 No standard has been established. Calcium (ppm) 61 55-72 2008 No standard has been established. Hardness (grains per gallons, gpg) 15 13-18 2008 No standard has been established Magnesium (ppm) 25 22-29 2008 No standard has been established. N- Nitrosodimethylamine (NDMA) (ppt) N/A ND —2.7 2008 No standard has been established. 11 (PHG = 3 ppt) pH (acids /bases) 8.1 8-8.2 2008 No standard has been established. Potassium (ppm) 4 4-5 2008 No standard has been established. Sodium (ppm) 94 85-106 2008 No standard has been established. Total Organic Carbon (ppm) 2 2-3 2008 No standard has been established - -- END--- 12 AGENDA REPORT Meeting Date: May 28, 2009 ITEM NO. 8.1 Subject: Wells Capital Investment Report for the 3rd Quarter of FY 2008/09 STAFF RECOMMENDATION: This is for information only. No action is required. ATTACHMENTS: Description: Type: YLWDPerf Page. pdf Wells Capital Performance Summary Backup Material YLWD Econ1Q09.pdf Wells Capital Economic Update Backup Material Yorba Linda Water District Account #18611500 Portfolio Managed by: Wells Capital Management Performance Summary Report For the period ended: March 31, 2009 Reporting Period: Annualized Month -to- Quarter to Return Since Date Date YTD Inception* Yorba Linda Water District 0.08% 0.15% 11.15/0 Investment Portfolio 4.24% Lipper Institutional Money 0.06% 0.24% 0? =1�%- Market Fund Index 4.23% 4.50% 4.00% 3.50% ■ YLWD ® Lipper Inst. MM Fund Index 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Month -to -Date Quarter to Date YTD Annualized Since Inception * - Account inception date for purposes of perfonnance calculation: 1111105 Returns are net of Wells Capital Management fees. WELLS CAPITAL MANAGEMENT MONTHLY MARKET OUTLOOK Presented to: The Yorba Linda Water District April 2009 THE INVESTMENT ENVIRONMENT: FIRST LIGHT? Less worrisome economic data are easing concern over the depth and duration of this economic slump and the implications for the financial market. Support is coming both from aggressive monetary stimulus and from the economy's "automatic stabilizers, " including low inflation, subdued interest rates and, ironically, the effects of home foreclosures on housing "affordability. " The economy still faces hurdles to a bona fide recovery —even the modest one expected to begin sometime during the second half of 2009. The financial market still is on life support. Fall -out from the upheavals there continues to ripple through the economy, adding to the usual late -cycle deterioration of credit duality. However, forward - looking investors already are beginning to contemplate a whole new set of issues, even as strategy among many still is geared to the effects of an extended, credit - induced slump. Among them: a) the Fed's exit strategy from massive "quantitative easing, " the implications for financial market stability and the central bank's longer -term independence, b) the appetite for Treasury debt in the face of massive Federal deficits, and c) the inflation implications of the Federal Reserve's decision to "monetize" those deficits through direct purchases. For many investors, however, uncertainties associated with a dose of "reflation" would be a welcome change from the "great unwind" of the past year. The Economy: Change You Can Believe In? The economy's worst recession in over twenty -five years showed signs of winding down late in the first quarter, raising hopes that relief from steep output and job losses weighing on the economy since last fall is on the way. Moderating declines in recent data - -laced with key increases - -were not enough to prevent the economy from slumping at an estimated 4 % -5% rate during the opening months of 2009, atop a revised, 6.3% drop late last year. However, three classic pillars of recovery were forming at the start of the spring quarter. First, home sales - -a first step toward a full -blown housing recovery - -have been lifted by historically low mort- gage rates and foreclosure- related declines in home prices that have left "affordability" at its highest reading in over thirty -five years. RISING HOUSING "AFFORDABILITY" BOOSTS HOME SALES Ratio, Cost of Owning Vs. Renting % Of QaalifWn,¢ Income 120 80 Ratio, Cost gfOwning V.% Renting* Scale) 170 I10 (Left Seale) 60 100 + I V I I + 150 �f 40 90 Feb 'U9 Noosing '4Affordab ilin" 130 (Right Scale) 80 / V 120 70 1[Qc 60 , ' 90 Dec -03 Dec -04 Dec -05 Dec -06 Dec -07 Dec -08 Dec -09 Sources: Nat'l Assn Of Realtors; U.S. Labor Department Stronger home sales, already boosting mortgage - finance employment and activity, eventually should stoke consumers' "big- ticket" purchases of appliances and home furnishings. Spending has been supported, recently, by accelerated tax refunds, savings from the latest wave of mortgage refinancings and by the lift to inflation- adjusted incomes from lower fuel costs. And with sales now stabilizing, businesses finally are making a start toward lowering top -heavy inventories to a more acceptable level. 2.0 1.9 1.8 1.7 1.6 1.5 Dec -06 Jun -07 Dec -07 Jun -08 Dec -08 Soarce. U.S. Census Bur a TOY -HEAVY INVENTORIES BEGIN TO MOVE LOWER Ratio Oflnventories To Sales; Months' Equivalent 1.35 1,tU I.,; 120 1.15 1.10 Getting the economy moving, again, won't be easy, however, a point underscored by yet another decline in the March Index of Leading Indicators. Fall -out from auto - industry consolidation on employment and on a severely depressed manufacturing sector is one of at least two immediate hurdles to a bona fide recovery. The other threat: "purchasing- power" now being squeezed at both ends, by recent fuel -cost increases and by the effect of steep job cuts on income. That may have contributed to a first drop this year in March retail sales, already struggling with a late Easter and with the effect of price declines on sales receipts. Other "head winds" could keep the next recovery more mild than usual after a deep recession. First, a rebound in housing construction - -a key, growth engine early in an economic cycle — likely will be delayed until well into next year by unsold home inventories bloated by the same wave of foreclosures now depressing prices and boosting sales. Second, gains in consumer spending will be diluted by the usual increase in saving when wealth declines. (See the chart below.) Foreign trade —a potential leading edge sector, like housing and consumer spending — still is being depressed by the global economic slump and by a "freeze" on trade credit. Moreover, lingering "tightness" in the U.S. credit market likely will restrain growth well into 2010. Those pressures, and stresses from the recent construction "boom," have magnified the threat to credit quality, bank capital and to lending capacity from the usual late -cycle slowdown in commercial real estate. 14 12 is 4 0 COLLAPSING HOUSEHOLD WEALTH POINTS TOWARD AN INCREASED SAVING RATE Percent Of After -Tax Income Yr -Ago % Chg, 4 &rAvg Household M,aldr (Right Sarre) A Saving Rate (Left Scale) 08Q4� 20% 15 °Ic 10% 5% 0% -15% Dec -69 Dec -76 Dec -83 Dec -90 Dec -97 Dec -04 Dec - II Soarce.s: Federa l Reserve Board; U.S. Commerce DepartmenI The good news is that the economy tends to be less credit intensive early in a recovery than it is late in a growth cycle. More subdued inflation and interest rates now, compared to the deep recessions of the mid -1970s and early 1980s, also are lessening the stresses on the economy and the financial market as they position for a recovery. And unlike many of the past credit "crunches," sizable amounts of "cash" now on the sidelines could provide a surprisingly quick boost to the economy as financial conditions improve. Still, the economy will have to overcome a history of unusually weak, drawn -out adjustments to past credit crises, if it is to mount a strong recovery. The Financial Market: Thawing Out! Treasury interest rates have see -sawed lower since the end of February, depressed by the economic slump, lingering "flight capital" and by the Federal Reserve's direct purchases of Treasury securities late in the first quarter. Declines have been interrupted, at times, by the effects of a renewed credit thaw, encouraging economic signs and by worries over increased deficit financing, the supply of Treasury securities and their effect on inflation expectations. Shorter -term securities have led the way lower until recently, widening the gap between them and yields on longer -term securities in what is termed a "steepening" yield curve. (See the chart below.) A WIDENING GAP BETWEEN SHORT- AND LONG -TERM TREASURY RATES THROUGH MID -APRIL Yield Difference, 30 -Yr Vs. 3 -Mo. Treasurys, Basis Points 450 400 350 300 250 200 150 4121109 K I ---------------------- Avg., 1987- 2008=196 B.P. loo 1 . . . . . . . 1 1 12/28/07 5/9/08 0/09 Source: Federal Reserve Board New and existing financing programs by the government have helped restart a slow, uneven credit thaw that had stalled earlier in the year. Mortgage rates have been driven sharply lower since last fall by the Federal Reserve's direct purchases of government - guaranteed mortgage- backed securities, an important means of funding home loans. Money has been moving back into both the investment and non - investment -grade sectors of the corporate bond market. Bank funding costs have come down — helped, in part, by "cheap" government financing- - boosting the industry's net interest margins and its ability to replenish capital internally. Investors also are awaiting the impact of several new Federal Reserve and Treasury programs to improve funding of high quality securities and to purchase jointly with private investors illiquid, "toxic" assets weighing on bank balance sheets. However, market conditions still are far from normal. Flight capital is keeping Treasury interest rates extraordinarily low and yield premiums on non- Treasury to comparable government securities above their long -term average. Broad segments of the financial market, including "private- label" mortgage- backed securities in the "jumbo" loan market, still are very "tight" or largely closed to borrowers. Weaknesses in the government's bail -out strategy — including the nagging issue of appropriate pricing of "illiquid" securities and questions about private participation- -leave success of the programs far from assured. And, as indicated in the chart below, the cost of credit default swaps — essentially the price for insurance against bond defaults - -- though down, still is high enough to signal uneasiness and uncertainty over conditions in the financial market. CREDIT DEFAULT SWAPS STILL ELEVATED BY WORRIES OVER THE OUTLOOK FOR CREDIT QUALITY, FINANCIAL STABILITY 300 260 220 180 140 loo 60 V 2004- � V 0<S'-73 B.P. 1 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 Sources: JP Morgan Chase, Inc., Bloomberg Financial News, Inc. A Three -Stage Rise In Interest Rates? Interest rates are vulnerable to a gradual, irregular rise over the next twelve months in three broad phases. Narrowing yield premiums between Treasury and non - Treasury securities may have marked the start of an interest - rate "up cycle, " as the credit thaw and accompanying reflow of flight capital nudges yields on government debt higher and suppresses rates elsewhere in the financial market. Rate increases likely will become more broadly based in the cycle's second phase later this year. The more uniform rise in yields is expected to be driven by a deficit- related increase in Treasury supply and, perhaps, by worries over a diminished appetite for those securities by U.S. and foreign investors. Added pressure may come from an inflation outlook made less sanguine by a firming economy, increased deficit financing and by the Fed's willingness to "monetize" a portion of that debt through direct purchases of Treasury securities. Phase three of the interest -rate "up" cycle could come as early as the first half of 2010, when the Federal Reserve offsets returning private capital to the market through gradual increases in the Fed funds rate and through sales of securities purchased earlier with money created by the central bank. Failure to move quickly could aggravate inflation expectations and increases in long -term rates, as investors become concerned about "too much money chasing too few goods." For reasons outlined in the inset below, worsening inflation expectations aren't likely to be validated, soon, by increased price pressures. Even if the Federal Reserve is successful in timing properly the change in monetary policy as credit conditions improve, however, market volatility could rise with uncertainties created by the abrupt switch from policy stimulus to restraint. THE INFLATION "CONUNDRUM" FACING INVESTORS Investors have had trouble deciding between the greater of two threats, rising inflation or "deflation" (i.e., declining prices). Remarkably, both are plausible concerns at the moment. Worries over deflation and its debilitating effect on income and spending, the more immediate concern, should dissipate if, as expected, the recession is in the process of "bottoming out. " Heightened inflation expectations, driven by massive budget deficits and by the Fed's willingness to "monetize" them by printing money, likely are premature, however. First, the amount of economic "slack" is at a twenty- six -year high. In fact, accelerated Federal borrowing historically has occurred during periods of falling inflation for just that reason. Taking the longer view, inflation likely will be restrained by the same forces suppressing it over the past twenty, or so years. Heightened global competition, weaker labor unions and deregulation have undercut "pricing power, " or the ability to pass along higher costs through price increases. That may be changing, but not quickly enough to affect inflation in the foreseeable future. Likewise, massive increases in Federal Reserve credit may be less of a problem now than it has been in the past. Unusually loose linkages between the Fed's credit extensions and the money supply, and between spending and money growth (i.e., money "velocity") have left the Fed effectively "pushing on a string" in trying to jump -start the economy. THE STOCK MARKET: A LONG - AWAITED SIGN? Out And In- -Like A Lion. Stocks posted their strongest six -week gain in over seventy years between early March and mid - April, before back- tracking soon thereafter, leaving the S &P 500 down 6.3% by April 21. The market continues to be buffeted by changing views on the economic, earnings and financial- market outlook during the balance of the year, keeping volatility, as measured by the "VIX" S &P 500 index, above average throughout the period. However, the rally's ability to gather momentum as it progressed through March bodes well for future gains, as investors gain better confidence over the investment outlook. Gains were broad -based during the stock market's latest rise, extending across all ten of the S &P 500's economic sectors and to 131 of its 134 constituent industry groups. Beaten -down financial services led the way, with most economically sensitive sectors of the market doing well, too. Tech stocks have bucked the latest sell -off, leaving them with a double -digit gain on the year in a "down" market. "Defensive" consumer staples and health care were hurt most by the rotation toward the market's riskier sectors. High - dividend stocks generally did little better, however, despite the strength of yield- oriented financial services, subdued by pay -out cuts there and at other financially hard- pressed companies. S &P 500 PERFORMANCE BY ECONOMIC SECTOR, 1008 -1009 Sources: Standard& Poors. Inc. Bloomberg Financial Neves. Inc. Leadership between March and the first half of April rotated from "growth" stocks to "value," and from mid -caps to small caps. Russell 1000 Value's performance advantage over its Growth counterpart was broadly based during the period, out - performing in all but one of the two benchmarks' twelve constituent sectors. Despite its recent strength, Value has lagged Growth on the year, keeping relative price- earnings (P /E) valuations between the two style groups in line with their historic norm. A relatively strong showing during the latest rally hasn't prevented Russell 2000 small -cap stocks from lagging the S &P 500 this year. Its P/E valuation remains "rich" by historic standards, compared to the S &P 500 benchmark, though in line with its average of the past three years. EQUITYSCORECARD Total Returns, In Percent Yr -To -Date Alan 1- 17,'09 Mar '09 4117109 1008 S &P500 Percent Change In Price Indexes -2.9 -37.0 3/9/09- 12/31/08- 12/31/07- -2.0 4/17/09 3/09/09 12/31/08 Financials 78.1% -50.4% -57.0% Consumer "Cyclicals" 41.3% -25.8% -34.7% Industrials 39.9% - 35.9 % -41.5% Materials 35.2% -20.91/ -47.11/ Tech 31.6% -13.91/ -43.71/ Telecom. Svcs 20.8% -21.1% -33.61/ Utilities 15.3% -23.1% -31.61/ Energy 14.5% -19.5% -35.91/ Consumer Staples 14.1% -19.0% -17.71/ Health Care 13.4% -18.1% -24.51/ S&P 500 28.5% -25.1% -38.51/ Sources: Standard& Poors. Inc. Bloomberg Financial Neves. Inc. Leadership between March and the first half of April rotated from "growth" stocks to "value," and from mid -caps to small caps. Russell 1000 Value's performance advantage over its Growth counterpart was broadly based during the period, out - performing in all but one of the two benchmarks' twelve constituent sectors. Despite its recent strength, Value has lagged Growth on the year, keeping relative price- earnings (P /E) valuations between the two style groups in line with their historic norm. A relatively strong showing during the latest rally hasn't prevented Russell 2000 small -cap stocks from lagging the S &P 500 this year. Its P/E valuation remains "rich" by historic standards, compared to the S &P 500 benchmark, though in line with its average of the past three years. EQUITYSCORECARD Total Returns, In Percent Yr -To -Date Alan 1- 17,'09 Mar '09 4117109 1008 S &P500 9.1 8.8 -2.9 -37.0 Russell 1000 9.5 8.8 -2.0 -37.6 R,,ssell 1060 Growth 8.1 8.9 3.7 -38.4 Russell 1000 Value 11.0 8.6 -7.6 -36.9 Russell Mid -Cap 13.2 9.2 3.1 -41.5 Russell Mid -Cap Growth 11.9 9.5 8.1 -44.3 Russell Mid -Cap Value 14.8 8.7 -2.1 -38.4 Russell 2000 13.5 8.9 -3.5 -33.8 Russell 2000 Growth 12.2 9.0 1.3 -38.5 Ru.cse1l2000 Value 14.8 8.9 -7.8 -28.9 MSCI EAFE (S Tenn.$) 9.8 6.3 -5.5 -43.4 (Lie. Carr. Terms) 9.8 3.8 -1.3 -40.3 Emergbig EAFE (S Temt.$) 13.1 14.4 14.2 -53.2 Sources: S&P: Fn Rassse 11 Co; MSCI A more moderate rally in developed- country markets since early March has left returns on the benchmark "EAFE" Index short of those on the S &P 500, despite a modest lift to dollar - denominated returns from a weaker U.S. currency. Emerging- market stocks out- paced the U.S. market, however, much as they did earlier this year, propelled by ample global "liquidity, " the rally in commodity prices, pledges of increased global stimulus by major industrialized countries and by increased investor risk tolerance amid the credit "thaw. " 100 90 till `II 60 50 MIDDLE GROUND FOR THE S&P 500 BETWEEN EMERGING- MARKET, "EAFE" STOCKS Emerg ng Markets 4117109 S &P ?00 lit. EAFE Intl Stocks 9/26/08 10/31/08 12/5/08 1/9/09 2/13/09 320/09 4/24/09 Source: Bloomberg Financial Nens. Inc. Building Blocks" Building For An Enduring Rally. A promising start has failed to dispel doubts about this rally's staying power. Investors are mindful of the long, irregular recovery from the 1930s slump by the economy and the equity market, when the market had to wait twenty -five years to return to its pre -1929 "crash" level. However, policy errors 75 years ago- - including tax increases, unintended credit "tightening" and the Smoot - Hawley tariffs -- disrupted a promising rebound from the initial slump, triggering a market relapse and another "mini - depression" in the late 1930s. Miscues are inevitable during the current cycle, but the mistakes have been- - and likely will continue to be - -made on the side of stimulus rather than restraint. A "CHEAP S &P 500, BASED ON "NORMALIZED "EARNINGS Price - Earnings Multiple, Based On Avg. Operating Prolits, Past 10 Yrs. 50 45 40 35 30 25 20 15 10 4121109 5; Dec -89 Dec -93 Dec -97 Dec -01 Dec -05 Dec -09 Source: Standard & Poors, Inc.; Bloomberg Financial News, Inc. Moreover, many of the key ingredients for a sustained rally already are in place. S &P 500 stocks THE BOND MARKET: RETURN TO "RISK ?" Out From "Treasurys." Bonds extended their rally through the first half of April, leaving the U.S. Aggregate Index of investment- grade, taxable bonds with a modest gain on the year. The bigger story during the opening weeks of this month, however, was a broad -based move out of Treasurys to other sectors of the bond market, the latest in a series of swings boosting volatility there. (See the chart at right.) Treasury securities have shrugged off periodic support from direct Federal Reserve purchases in moving lower, retracing some of the previous month's gains. The setback extended to Treasury Inflation- Protected Securities (or "TIPS "), which also reversed some of March's out -sized gain during the early part of April, as inflation worries subsided. Commercial mortgage- backed securities (or CMBS) extended March's impressive rally through the first half of April, as proposed government funding, under its new Troubled Asset Lending Facility (or "TALF "), out - weighed worsening conditions in the arguably are "cheap" relative to normalized earnings, to underlying asset values and to low- yielding bonds. There's also ample cash on the sidelines to support a rally, with the ratio of money fund assets to the total value of U.S. stocks more than two - and -a -half times its long -term average. Earnings are the key variable and the biggest question mark in the outlook. The good news, however, is that even modest gains by the economy could generate stronger- than - expected earnings growth. The reason: aggressive cost cutting has lifted operating leverage — underlying earnings as a percent of capital and labor costs —to an historically high level, allowing more of future revenue gains to flow directly to the bottom line. OPERATING LEVERAGE BACK TO A 45 -YEAR HIGH Non -Fin'l Corps. Revenue Per $ OjLabor & Capital Costs 1.39 1.35 1.31 1.27 1.23 1.19 1.15 1.07 Average, 1965- 2008 =1.24 08Q4 �s i Dec -64 Dec -72 Dec -80 Dec -88 Dec -96 Dec -04 Source: U.S. Commerce Department A "BUMPY" RIDE, THIS YEAR, FOR LONGER -TERM TREASURYS Percent Percentage Points 10% 8% 6% 4% 0' -2% -4% 2.5 2.3 2.1 1.9 1.7 1.5 1.3 1.1 0.9 0.7 -6% L 1 0.5 12/28/07 5/16/08 9/26/08 2/6/09 * As measured bv- the .standard deviation gfwkly returns over 13 wks. Source: Bank ofAmerica- Merrill Lynch, Inc. commercial real- estate market. Investment -grade corporate issues rebounded from last month's setback during the early part of April, paced by a strong rally in the financial- services sector. Issuance of FDIC - backed, shorter -term issues has remained strong during the period. Investment -grade corporate borrowers also are beginning to issue a sizable volume of debt not guaranteed by the government, another sign of financial- market improvement. Gains by mortgage- backed, asset - backed and agency securities were more modest, by comparison. BOND MAR KE T SCOR E CA RD Total Returns, In Percent Yr -To -Date Apr. 1-17,109 Mar 7/9 4117109 21098 Leh'mAggregate 0.3 1.4 0.4 5.2 Treasurys -1.2 2.2 -2.5 13.7 Agencys -0.1 1.0 -0.3 9.1 Mortgage -Bkds. 03 1.4 2.5 8.3 U.S. Credit 1.7 -0.1 -0.1 -3.1 Asset -Bkds. 0.3 2.0 7.8 -12.7 Municipals 2.1 0.0 6.4 -2.5 High -Yield 7.3 3.2 13.8 -26.2 U.S. "TIPS" -1.6 5.8 3.8 -2.4 Non -U.S. Gov'ts* -0.6 0.7 -0.6 8.0 EmergingMkts 5.3 5.1 10.7 -15.4 * Denominated in dollars, fully hedged Sources: Lehman Bros., Citigroup, Inc; Merrill Lynch, Inc. Outside the Aggregate universe, non- investment- grade bonds here and in emerging markets soared through mid - April, building on solid performances in March that left both sectors with double -digit returns on the year. Gains in the U.S. non- investment -grade market were Particularly strong among lower - quality bonds, underscoring the move out along the "risk curve." The muni market's rally regained momentum this month, after pausing in March, as individual demand continued to overcome weak activity among hedge funds and property and casualty insurers. And overseas, foreign Treasury bonds out - performed U.S. government securities, after lagging in March, due to relatively modest declines in Europe and in Japan. Sector Strategy Still On Top. Looking ahead, sector strategy still may offer the best opportunity to enhance returns among three broad engines of bond performance. Yield Premiums to comparable Treasury notes and bonds still are attractive across much of the non - Treasury sector, even after the recent rally. (See the chart at right.) In fact, at least one recent money- manager survey shows portfolios over - weighted in corporate and mortgage- backed securities, at the expense of Treasury, agency and asset - backed allocations. 300 250 200 150 100 50 Source: Merrill Lynch, Inc. 0 12/28/07 5/9/08 9/19/08 1/30/09 YIELD PREMIUMS STILL ATTRACTIVE FOR AA -RATED NON- FINANCIAL SECURITIES Yield Spreads To Comparable Treasurys, In B.P. By contrast, "duration" strategy (the decision to over- weight or to under - weight shorter- and longer -term securities in a bond portfolio) has become riskier, amid unusually "rich" Treasury debt, heightened volatility in parts of the market, economic and inflation uncertainties, and the threat from increased deficit financing. Portfolios among larger investors still are tilted toward longer -term securities, though such positions have been trimmed since early March. Yield -curve strategy (the distribution of investments along the yield curve to meet a certain maturity target), currently favoring a "bulleted" strategy keyed to shorter - intermediate securities, will be treacherous, too. Performance swings between "bullets" and "barbells," (i.e., splitting investments between short - and long -term securities) have been volatile in recent months and likely will remain so, as unsettled market conditions keep interest rates fluctuating across the maturity spectrum. Gary Schlossberg April 21, 2009 Wells Capital Management (WellsCap) is a registered investment adviser and a wholly owned subsidiary of Wells Fargo Bank, N.A. WellsCap provides investment management services for a variety of institutions. The views expressed are those of the author at the time of writing and are subject to change. This material has been distributed for educational purposes only, and should not be considered as investment advice or a recommendation for any particular security, strategy or investment product. The material is based upon information we consider reliable, but its accuracy and completeness cannot be guaranteed. Past performance is not a guarantee of future returns. As with any investment vehicle, there is a potential for profit as well as the possibility of loss. For additional information on Wells Capital Management and its advisory services, please view our web site at www.wellsc,al2.com, or refer to our Form ADV Part II, which is available upon request by calling 415.396.8000. Meeting Date: Subject: ATTACHMENTS: Name: 052109 EAO - Minutes.doc AGENDA REPORT May 28, 2009 Executive Administrative - Organizational Committee (Summerfield /Mills) Alternate: Collett Minutes of meeting held May 21, 4:00 p.m. Meeting scheduled for June 16, 4:00 p.m. Description: EAO Mtg Minutes 05/21/09 ITEM NO. 10.1 Type: Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT EXEC-ADM IN-ORGANIZATIONAL COMMITTEE MEETING May 21, 2009 A meeting of the Executive - Administrative - Organizational Committee was called to order by Director Summerfield at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 East Miraloma Avenue, Placentia CA 92870. COMMITTEE Director John Summerfield, Chair Director William R. Mills 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS STAFF Ken Vecchiarelli, General Manager 2.1. Report on Grant Activities — Townsend Public Affairs Mr. Christopher Townsend and Ms. Heather Dion from Townsend Public Affairs presented a summary report on the status of the State budget crisis, the State's plans to borrow property tax revenues and the status of State legislative activities. The Committee discussed these matters at length. 2.2. Plan for Obtaining Future State and Federal Grants - Townsend Public Affairs Mr. Townsend and Ms. Dion also reported on the status of funding opportunities through various State and Federal programs and how the President's stimulus package may affect these programs and offer additional opportunities that the District may be able to benefit from. 2.3. Report on Legislative Activities — Sacramento Advocates The Committee had no additional discussion of the report included in the agenda packet. 2.4. Report on 2009 Legislative Bills — McCormick, Kidman & Behrens The Committee received the report in their packet and had no questions or comments. 2.5. General Counsel's Monthly Summary Billing Reports The Committee reviewed the report and asked if any of the charges are related to capital projects. Staff will prepare an attachment in the future showing the net charges capitalized and expensed. 1 2.6. Directors' and General Manager's Fees and Expenses (Jan -Mar) The Committee commented they had no concerns with the expense report and staff added that total year -to -date and quarter -to -date Director and GM expenses through March 31, 2009 are under budget for meetings, conferences, travel and related expenses. 2.7. Future Planning Initiatives from the Strategic Planning Workshop Staff will present a summary report at the first Board of Directors Meeting in June. 2.8. Future Agenda Items and Staff Tasks The Committee suggested staff prepare an action plan update for the OCWD annexation matter. 3. ADJOURNMENT 3.1. The Committee adjourned at 5:40 p.m. The next regular meeting of the Executive - Administrative - Organizational Committee will be held June 16, 2009 at 4:00 p.m. 2 ITEM NO. 10.5 AGENDA REPORT Meeting Date: May 28, 2009 Subject: Public Information - Technology Committee (Collett /Beverage) Alternate: Armstrong Minutes of meeting held May 19, 9:00 a.m. Meeting scheduled for June 2, 4:00 p.m. has been cancelled. ATTACHMENTS: Name: Description: Type: 051909 PIT - Minutes.doc PIT Mtg Minutes 05/19/09 Minutes MINUTES OF THE YORBA LINDA WATER DISRICT PUBLIC INFORMATION - TECHNOLOGY COMMITTEE MEETING May 19, 2009 A meeting of the Public Information - Technology Committee was called to order by Director Collett at 9:00 a.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE Director Ric Collett, Chair Director Michael J. Beverage 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS STAFF Pat Grady, Assistant General Manager Cindy Botts, Management Analyst 2.1. Conservation Ordinance Table Tents Ms. Botts presented a draft of the table tents that were created by staff as part of the conservation ordinance implementation plan. The committee liked the design but suggested that staff look at both laminating the tents and purchasing a clear plastic tent with a paper insert. 2.2. Conservation Ordinance General Information Tri -Fold Ms. Botts presented the ordinance tri -fold designed by Avante- Garde, Inc. The committee liked the design and asked for text clarification in one portion of the tri -fold. They also asked that the tri -fold be reviewed by the committee again at the end of the summer to make sure there were no changes prior to going to a secondary print run. Ms. Botts informed the committee that the first print run would begin the following day and would allow for insertion into June's billing. 2.3. Water Lines Newsletter Spring 2009 Ms. Botts informed the committee that the newsletter had been delivered to all District customers and confirmed that both committee members received theirs. Ms. Botts also asked the committee to review the flyers to be handed out to schools in the District. 2.4. Future Agenda Items and Staff Tasks None. 3. ADJOURNMENT 3.1. The meeting was adjourned at 10:00 a.m. The next regular meeting of the Public Information - Technology Committee was scheduled to be held June 2, 2009 at 4:00 p.m. but has since been canceled. 1 ITEM NO. 10.6 AGENDA REPORT Meeting Date: May 28, 2009 Subject: MWDOC /OCWD Ad Hoc Committee (Mills /Collett) Alternate: Summerfield Minutes of meeting held May 26, 4:00 p.m. (to be provided at the meeting). Meeting scheduled for July 28, 4:00 p.m. ATTACHMENTS: Name: Description: Type: 052609 MWDOC OCWD - Minutes.doc MWDOC /OCWD Mtg Minutes 05/26/09 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT MWDOC AND OCWD AD HOC COMMITTEE MEETING May 26, 2009 A meeting of the YLWD - MWDOC -OCWD Ad Hoc Committee was called to order at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. YLWD COMMITTEE MEMBERS Director William R. Mills, Chair MWDOC COMMITTEE MEMBERS Brett Barbre, Director OCWD COMMITTEE MEMBERS Roger Yoh, Director 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS YLWD STAFF Ken Vecchiarelli, General Manager MWDOC STAFF Kevin Hunt, General Manager OCWD STAFF Mike Markus, General Manager 2.1. Water Supply Update — MWDOC MWDOC General Manager Kevin Hunt presented an update of the import water supply for the upcoming fiscal year. Mr. Hunt reported Metropolitan Water District's (MWD) allocation from the State Water Project has been increased to 40 %. He explained this translates into less water that will have to be taken out of critically depleted storage reserves. Mr. Hunt further reported the Colorado River Aqueduct (CRA) is expected to flow at near full capacity delivering approximately 1.1 to 1.2 million acre feet over the next fiscal year. The Committee discussed concerns about sustainability of these flows considering the CRA allocations and commitments to other users with prescribed water rights. OCWD General Manager Mike Markus added that the overdraft condition of the Orange County Groundwater Basin, the local drinking water supply, is expected to be at nearly 360,000 acre feet by the end of next month. Mr. Markus also reported on OCWD efforts to secure rights to store additional water behind Prado Dam. These discussions are ongoing with the US Army Corps of Engineers. 2.2. Met Issues (Conservation and Outreach) — MWDOC Mr. Hunt reported on the status of conservation efforts within Orange County, collaborative message development, MWD's rebate programs and their outreach on the need for additional conservation and mandatory water restrictions. MWD's broadcast television and news radio advertisements have been very visible and well received. The television ads can be viewed on MWD's website at the address shown below: http: / /www.bewaterwise.com /movies /ad campaigns /ads.html# 1 Mr. Hunt also reported on the status of water agencies' efforts throughout the county to establish and adopt water conservation ordinances and water waste prohibitions. Mr. Vecchiarelli reported that YLWD adopted its conservation Ordinance at the May 14th Board of Directors Meeting. 2.3. State Budget Issues — MWDOC Mr. Hunt reported on the recent news that the State may borrow up to 8% of the property tax revenue from cities, counties and special districts. The Committee discussed whether the State would shift tax revenues proportionately or if special districts would bear a larger burden as they did in previous years. 2.4. Lease Site for Well at Santa Ana Lakes — YLWD The Committee discussed a request from YLWD to OCWD for consideration of a groundwater well site located on the Warner Basin site adjacent to La Palma Avenue. Mr. Markus explained that OCWD is currently exploring options with a potential property developer for this site. While there are no firm commitments, in the interest of moving YLWD's request forward, Mr. Markus suggested exploring other OCWD sites for consideration. 2.5. OCWD Annexation — YLWD Mr. Markus explained OCWD's intent to separate the Long Term Facilities Plan from proposed annexations. The OCWD Board of Directors will vote on this matter at their meeting on May 27th. OCWD staff's recommendation is to terminate the current annexation MOU's with Irvine Ranch Water District and the City of Anaheim and to receive and file the LTFP once comments for the original PEIR have been addressed. YLWD, Anaheim and IRWD can reapply for annexation following these actions if they still desired to do so. 2.6 Future Agenda Items and Staff Tasks None discussed. 3. ADJOURNMENT 3.1. The Committee adjourned at 5:20 p.m. The next regular meeting of the YLWD - MWDOC -OCWD Ad Hoc Committee will be held July 28, 2009 at 4:00 p.m. 2 ITEM NO. 12.1 AGENDA REPORT Meeting Date: May 28, 2009 Subject: Meetings from May 29, 2009 thru June 30, 2009 STAFF RECOMMENDATION: Authorize Directors and such staff members of the District as approved by the General Manager to attend the listed meetings. ATTACHMENTS: Nu,,, -. BOD Activities Calendar.pdf Description: BOD Activities Calendar Board of Directors Activity Calendar Event June 2009 District Board Workshop Yorba Linda City Council MWDOC /MWD Workshop OCWD Board Planning- Engineering- Operations Committee Personnel -Risk Management Committee Finance - Accounting Committee City of Placentia Ad Hoc Committee Yorba Linda Planning Commission District Board Meeting Exec utive- Admin- Organizational Committee Yorba Linda City Council MWDOC Board OCWD Board Yorba Linda Planning Commission District Board Meeting Date Tue, Jun 2 Tue, Jun 2 Wed, Jun 3 Wed, Jun 3 Thu, Jun 4 Mon, Jun 8 Tue, Jun 9 Wed, Jun 10 Wed, Jun 10 Thu, Jun 11 Tue, Jun 16 Tue, Jun 16 Wed, Jun 17 Wed, Jun 17 Wed, Jun 24 Thu, Jun 25 Time Attendance by: 8:OOAM 6:30PM 7:30AM 5:OOPM 4:OOPM 4:OOPM 4:OOPM 4:OOPM 7:OOPM 6:30PM 4:OOPM 6:30PM 8:30AM 5:OOPM 7:OOPM 8:30AM Mills Staff Staff Mills /Armstrong Armstrong /Collett Beverage /Summerfield Collett Summerfield /Mills Armstrong Staff Staff Summerfield 5/22/2009 2:1 1 :00 PM