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HomeMy WebLinkAbout2022-11-16 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Wednesday, November 16, 2022, 6:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Due to the continuing state of emergency declared by the California Governor related to preventing the spread of Coronavirus (COVID-19), and pursuant to California Government Code Section 54953(e), this meeting will be facilitated in a hybrid format. As such, Directors and members of the public may choose to participate in person or by video/teleconference. Information for accessing this meeting by telephone or internet-based service is provided below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: https://us06web.zoom.us/j/82832533310 Telephone: (669) 900-6833 or (346) 248-7799 Meeting ID: 828 3253 3310 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL J. Wayne Miller, PhD, President Brooke Jones, Vice President Trudi DesRoches, Director Phil Hawkins, Director Tom Lindsey, Director 5. ADDITIONS/DELETIONS TO THE AGENDA Items may be added to the agenda upon determination by a two-thirds vote of the Board, or a unanimous vote if only three Directors are present, that there is a need to take immediate action which came to the District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2)) 6. INTRODUCTIONS AND PRESENTATIONS 6.1. Elected Official Liaison Reports 6.2. Federal and State Legislative Update 7. PUBLIC COMMENTS Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) 8. CONSENT CALENDAR All items on the consent calendar are considered routine and may be approved by a single motion. There will be no discussion of these items unless a member of the Board, staff, or public requests separate consideration. 8.1. Minutes of the Board of Directors Meeting Held October 24, 2022 Page 1 of 132 Recommendation: That the Board of Directors approve the minutes as presented. 8.2. Reauthorizing Continuation of Virtual/Teleconference Board Meetings Recommendation: That the Board of Directors reauthorize the continuation of virtual/teleconference meetings pursuant to AB 361 for an additional 30 days based on the findings that (1) the Board has reconsidered the circumstances of the state of emergency for COVID-19, and that (2) state and local officials continue to impose or recommend measures to promote social distancing. 8.3. Legislative Platform for Calendar Year 2023 Recommendation: That the Board of Directors approve the proposed legislative platform for calendar year 2023. 8.4. Status of Communications Activities Recommendation: That the Board of Directors receive and file the monthly communications activities report. 8.5. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,851,711.12 8.6. Unaudited Financial Statements for First Quarter of Fiscal Year 2022-23 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the First Quarter of Fiscal Year 2022-23. 8.7. Cash and Investment Report for Period Ending September 30, 2022 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the Period Ending September 30, 2022. 8.8. Capital Improvement Plan (CIP) Progress Report for First Quarter of Fiscal Year 2022-23 Recommendation: That the Board of Directors receive and file the Capital Improvement Plan Progress Report for First Quarter of Fiscal Year 2022-23. 8.9. Agreement with City of Placentia for Valve Box and Manhole Adjustment for Fiscal Year 2022-23 Recommendation: That the Board of Directors authorize the General Manager to execute an agreement with the City of Placentia to adjust District manhole and valve boxes impacted by the City's paving projects, subject to legal review by General Counsel. 8.10. Declaration of Restrictive Covenants with Michael Major and Kimberley Major of 4179 Pepper Avenue, Yorba Linda Recommendation: That the Board of Directors authorize the Board President and General Manager to execute a Declaration of Restrictive Covenants with Michael Major and Kimberley Major of 4179 Pepper Avenue, Yorba Linda. 8.11. Terms and Conditions for Water and Sewer Service with the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints for 17142 Bastanchury Road Recommendation: That the Board of Directors approve the Terms and Page 2 of 132 Conditions for Water and Sewer Service with the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints for 17142 Bastanchury Road. 9. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior to formal action. 9.1. Adoption of Encroachments Policy Recommendation: That the Board of Directors adopt Resolution No. 2022-XX adopting, in its substantial form, an Encroachments Policy. 9.2. Association of California Water Agencies (ACWA) Proposed Amended and Restated Bylaws Recommendation: That the Board of Directors review the proposed amended and restated ACWA Bylaws and designate a delegate and alternate delegate to vote on the District's behalf during the upcoming ACWA General Session Membership Meeting(s). 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Director's Reports 10.2. General Manager's Report 10.3. General Counsel's Report 10.4. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller / DesRoches) - Next meeting will be scheduled when needed. 11.2. Joint Agency Committee with City of Yorba Linda (Miller / Lindsey) - Minutes for meeting held Monday, November 7, 2022 at 4:00 p.m. will be provided when available. Next meeting yet to be scheduled. 11.3. Joint Agency Committee with City of Placentia (Jones / Lindsey) - Minutes for meeting held Tuesday, October 25, 2022 at 4:00 p.m. will be provided when available. Next meeting yet to be scheduled. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from November 17 - December 31, 2022 13. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 13.1. Annual Homeland Security Briefing Regarding Public Services or Facilities Pursuant to Subdivision (a) of Section 54957 of the California Government Code Consultation with General Manager 13.2. Conference with Legal Counsel - Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Page 3 of 132 Number of Potential Cases: Two 13.3. Conference with Legal Counsel - Initiation of Litigation Pursuant to Paragraph (4) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases Two 13.4. Conference with Legal Counsel - Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: YLWD v. Alex Winsberg (Orange County Superior Court - Case No. 30-2022-01284814-CU-OR-CJC) 13.5. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 14. REPORT FROM CLOSED SESSION 15. ADJOURNMENT 15.1. The next regular Board meeting is scheduled Tuesday, December 13, 2022 at 5:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District’s Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When practical, these materials will also be posted on the District’s website at https://ylwd.com/. (GC 54957.5) Accommodations for the Disabled Requests for disability-related modifications or accommodations, including auxiliary aids or services, required for participation in the above-posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC 54954.2(a)) Page 4 of 132 ITEM NO. 6.2. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Alison Martin, Public Affairs Manager SUBJECT: Federal and State Legislative Update Attached are the monthly legislative reports from Townsend Public Affairs. ATTACHMENTS: 1. Monthly Report 2. Election Results as of November 9, 2022 Page 5 of 132 Page 1 M E M O R A N D U M To: Yorba Linda Water District From: Townsend Public Affairs Date: November 10, 2022 Subject: State and Federal Legislative Monthly Report State Legislative Update The month of October included no legislative action – a diversion from previous months, which featured the 2022 Legislative Session followed by the Governor’s consideration of bills until September 30. Instead, October featured numerous developments on the regulatory, executive, and judicial fronts, including the impending end of the COVID-19 State of Emergency, a December Special Legislative Session to address high gas prices, and court action on housing development projects and CEQA. Below is an overview of relevant actions that transpired during the month of October. California State Budget: Fiscal Outlook During the month of October, the Department of Finance released its Finance Bulletin, which revealed some return shortfalls totaling $7 billion. Specifically, September receipts came in $2.8 billion below the month’s projection, which is $4.8 billion below for fiscal year to date. Combined with $2.2 billion shortfall ending in the last fiscal year, the State’s total revenues are currently nearly $7 billion below most recent forecast. These numbers will continue to fluctuate throughout the next few months as additional returns data filters in throughout the tax season. While these projections highlight a decrease in projected revenues, responsible state budgeting throughout the past few gubernatorial administrations has resulted in over $23 billion in the state’s rainy day fund, strong budget reserves, and over $130 billion in cash on hand. Looking ahead, these data present a strong case for more modest budgeting as the state prepares for a potential economic downturn. COVID-19 State of Emergency to End February 28, 2023 On October 17, the Governor announced his plans to end the COVID-19 State of Emergency on February 28, 2023. The timing reflects what the Administration believes is enough time to accommodate the transition process at the state and local levels. For local governments, this will mean that the provisions that allow for remote meeting teleconferencing under modified Brown Act Requirements in AB 361 (R. Rivas, Statutes of 2021) will expire on the same date as the declared end of the State of Emergency. Under AB 361, local governing bodies are permitted to teleconference without complying with specific Brown Act restrictions in certain state of emergencies which are limited to “proclaimed state of emergencies that state or local officials have imposed or recommended measures to promote social Page 6 of 132 Page 2 distancing,” and that “as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.” While AB 361 does apply to emergencies arising from the COVID-19 pandemic, it also specifically references Government Code section 8558, which contains a broad definition of emergency including, among others, fire, flood, storm, epidemic and earthquake. However, many state of emergencies do not meet the requirements set forth in AB 361, which requires emergencies to either necessitate social distance or physically precludes a local agency from meeting. During the most recent two-year session, the Legislature considered numerous proposals that sought to further amend or extend remote meeting allowances, though many failed due to concerns expressed by legislators that the proposed policies lacked guardrails and local accountability provisions. The most recent law passed related to remote meetings was AB 2449 (Rubio), which allows, until January 1, 2026, members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting, and without making each teleconference location accessible to the public, under specified conditions. These “specified conditions” are largely reserved for emergency situations and may not be utilized for more than 20 percent of meetings annually. While still unclear, it is possible that the Legislature could move forward with additional bills that would provide for additional remote meeting flexibility in January. CEC Adopts Regulations Implementing Site Approval of Renewable Energy Projects On October 24, the Office of Administrative Law approved the California Energy Commission’s (CEC) proposed regulations implementing authority bestowed up on them through AB 205 (Committee on Budget), the energy budget trailer bill from last session. AB 205 allows CEC to grant consolidated permits for certain clean energy projects through June 30, 2029, if they adhere to specified labor standards, including the use of skilled and trained workforce, and provide community benefits. This new CEC consolidated permit replaces and supersedes all local, state, and federal permits, except for in certain minor circumstances. The CEC began the emergency regulations process in August and concluded the effort in early October. For more information, see the CEC’s page here. Federal Legislative Update Update on Fiscal Year 2023 Appropriations Congressional leaders continue to aim for action on a Fiscal Year 2023 omnibus funding bill during the lame duck session following the November elections. Negotiations have been taking place behind closed doors and October has not yielded much progress on an agreement. The outcome of the November election will likely spur action and progress is hoped for when members return to Washington, DC during the week of November 14. Congress must pass either an omnibus funding bill or another continuing resolution prior to the expiration of funding on December 16. Water Resources Development Act 2022 While versions of the biennial Water Resources Development Act of 2022 (WRDA) have passed both the House and Senate this year, the final endgame is being plotted to pass the bipartisan legislation into law. During an otherwise quiet Senate session in October important progress was made by attaching a placeholder for a final WRDA agreement to the annual National Defense Page 7 of 132 Page 3 Authorization Act (NDAA). With a busy lame duck session shaping up following the November elections WRDA may be attached to the annual NDAA, a bill that has passed every year for decades and is expected to pass when Congress returns. Negotiations on a final WRDA agreement continue and are said to be timed so that final legislative language can be attached to either the NDAA or a government funding omnibus in December. Large portions of the House and Senate WRDA bills were pre-conferenced between the House and Senate which provides optimism for a final deal coming together in November for a vote in December. Interior Department Takes Additional Action to Modify Colorado River Basin Operations The Department of Interior has announced a new plan to address the ongoing drought crisis. The Department announced expedited steps to prepare new measures that are needed to protect the long-term sustainability of the Colorado River System. The Bureau of Reclamation will revise the operating guidelines for Glen Canyon and Hoover Dams in 2023 and 2024 to address the likelihood of continued low-runoff conditions across the Basin. Reclamation will publish a Notice of Intent (NOI) to prepare a Supplemental Environmental Impact Statement (SEIS), which will include proposed alternatives to revise the December 2007 Record of Decision associated with the Colorado River Interim Guidelines. The 2007 Guidelines provide operating criteria for Lake Mead and Lake Powell. The NOI outlines that Reclamation may need to modify current operations and reduce Glen Canyon Dam downstream releases to ensure that the Dam continues to operate the way it is intended to. Reclamation is taking the immediate steps now to revise the operating guidelines to protect the Colorado River System: the SEIS will analyze a Framework Agreement Alternative which would build on commitments and obligations already developed as a part of the 2019 Colorado River Drought Contingency Plan (DCP) Authorization Act. SEIS will also analyze the Reservoir Operations Modification Alternative which would be developed by Reclamation to consider the ways in which Secretaries could complement consensus-based alternatives which are not already sufficiently mitigating current and projected risks. Finally, the SEIS will consider a No Action Alternative – this Alternative would mean the continued implementation of existing procedures controlling the operations of the Glen Canyon and Hoover Dams. This announced action plan builds on steps announced in the Colorado River Basin August 2022 24-Month Study and the actions announced in September to reduce water consumption. The Department also recently announced new drought mitigation funding opportunities to provide reliable, sustainable, and equitable water and power supplies across the Basin. Much of this funding has come from the Inflation Reduction Act. The NOI announced does not interfere with Reclamation’s separate process for determining post-2026 Colorado River Operations. Members of the public interested in providing input on the SEIS can do so through December 20, 2022, per instructions in the Federal Register that will be published in November. Department of Interior Announces New Steps for Drought Mitigation Funding from Inflation Reduction Act The Department of Interior announced new drought mitigation funding opportunities to improve and protect the sustainability of the Colorado River System. The newly created Lower Colorado River Basin System Conservation and Efficiency Program, funded through the Inflation Reduction Act and managed by the Bureau of Reclamation, will help increase water conservation, improve Page 8 of 132 Page 4 water efficiency, and prevent the System’s reservoirs from falling to critically low levels. The Inflation Reduction Act allocates $4 billion in funding for water management and conservation in the Colorado River Basin. This funding is focused on near-term challenges and the Department is also working to invest in long-term improvements, including $500 million in the Upper Basin states of Colorado, Utah, Wyoming, and New Mexico. The Lower Colorado River Basin System Conservation and Efficient Program will select projects for funding that address water delivery, protect natural resources, and ensure a reliable source of water and power for Western communities. The program has three components, two of which are open for proposal submissions until November 21. For the first component, eligible applicants may submit proposals for system conservation resulting in wet water remaining in Lake Mead at a set price of: • One-year agreement: $330 per acre-foot • Two-year agreement: $365 per acre-foot • Three-year agreement: $400 per acre-foot A second component of the program will accept proposals for additional water conservation and efficiency projects that could involve a variety of pricing options. The third component allows for proposals to be submitted in early 2023 for long-term system efficiency improvements that will result in multi-year system conservation. Information on the program and proposal submission details are available on Reclamation’s Inflation Reduction Act webpage. Page 9 of 132 State Capitol Office ▪ 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383 Federal Office ▪ 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555 Southern California Office ▪ 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215 Central California Office ▪ 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax (949) 476-8215 Northern California Office ▪ 300 Frank Ogawa Plaza • Suite 204 • Oakland, CA 94612 • Phone (510) 835-9050 • Fax (510) 835-9030 M E M O R A N D U M To: Yorba Linda Water District From: Townsend Public Affairs Date: November 10, 2022 Subject: November 2022 General Election Recap Executive Summary Federal U.S. Senate Control: Too close to call, Democrats likely to maintain 50/50 majority pending outcomes in Georgia and Nevada Senate Race (California): Incumbent Senator Alex Padilla wins House Control: Too close to call, Republicans likely to achieve slim majority House Races: 52 total for CA, 33 by wide margins (30 Democrat, 3 Republican) 19 CA races too close to call State Statewide Offices: Democrats have clear victories in all races State Legislature: Democratic super majorities expected to remain in both houses Senate: 20 races total, 5 races too close to call Assembly: 80 races total, 6 races too close to call Voter Initiatives: 7 total, 3 passed Passed: Proposition 1: Reproductive rights Proposition 28: K-12 arts and music funding Proposition 31: Ban on flavored tobacco Failed: Propositions 26 and 27: In-Person and Online Sports Gambling Proposition 29: Kidney Dialysis Clinics Proposition 30: Wealth tax for climate initiatives Page 10 of 132 General Election Summary 2 Overview On Tuesday, November 8th, millions of Californians cast their ballot in the State’s General Election. As of this morning, over 5.5 million ballots had been cast in races across the State, with millions of additional mail-in, provisional, and damaged ballots still to be tabulated prior to the election being certified on December 16th. Below is a summary of the key races from Tuesday’s General Election, as well as the current returns for all statewide, congressional, and legislative races. It should also be noted that over the next several weeks, counties will be processing and reporting their uncounted ballots, which, in some counties, could comprise over 50% percent of the total votes cast. As a result, the outcome of some close contests will likely not be known for several weeks. Once the election results are certified by the Secretary of State on December 16th, TPA will provide an updated version of this memo to reflect the complete results of all races. Federal Outcomes As of Wednesday, November 9th, many decisive federal races remained too early to call. With key Senate races and many House races outstanding, it will take days if not weeks to determine control of both the House and Senate. Control of the Senate While the votes are still being tabulated in key states that will determine control of the chamber, several scenarios are still possible, including that Democrats will hold on to their narrow majority of the U.S. Senate in the 118th Congress. This small majority would allow the Senate to continue to conduct the basic role of the chamber, in approving judges and key administration appointments. Final results in the key states of Nevada, Georgia, and Arizona will ultimately determine Senate control, with the distinct possibility that a December 6th runoff election in Georgia could decide which party controls the Senate. Given the possibility that the two chambers will not be controlled by the same party, the Senate will continue to work with the Biden Administration to propose large agenda items; however, any proposals out of the Senate will need to be scaled back if they want to be viable in the House. This will be a continued mode of operating for the chamber as they will not continue to work on a 50-50 majority, with the Vice President being a tie breaking vote on critical votes. With a likely split chamber, any legislation moved forward by the Democratic controlled Senate will face significant hurdles to make it through the House. Democratic leadership will have to use their slight majority to block proposals coming from the House that do not align with their policy goals, while working to draft bipartisan solutions that move key priorities forward. Key Senate Races After being appointed to the position in 2021, Senator Alex Padilla successfully won election to serve his first full term representing California in the U.S. Senate. In races that helped to counter expectations of an overwhelming Republican victory, races in Washington, New Hampshire, and Colorado all remained in Democratic control. Page 11 of 132 General Election Summary 3 In a key battleground state, Democrat John Fetterman has won his election to represent Pennsylvania in the U.S. Senate, defeating Republican challenger Mehmet Oz. Pennsylvania is a pickup for Democrats, flipping a seat vacated by retiring Republican Senator Pat Toomey. In Nevada, Georgia, and Arizona, Democratic incumbents are on the defensive. All three races are too early to call as votes from the largest population centers in Arizona and Nevada continue to be tabulated. As of this writing, it is likely that Arizona Senator Mark Kelly will keep his seat, while Nevada Senator Cortez Masto is at risk of losing her seat. If these two races end up as a win for the separate parties, the fate of Senate control will land in the hands of Georgia voters. Neither candidate in Georgia has crossed the 50 percent threshold to declare a winner. Both incumbent Democratic Senator Rafael Warnock and Republican challenger Herschel Walker remained neck and neck just below the 50% majority required to avoid a runoff. The Georgia Secretary of State’s office has indicated it is more than likely this race will move to a runoff on December 6th. The 2022 Georgia Senate race was already one of the most expensive in US history, and if control of the US Senate depends on the outcome of the December 6th runoff, we can expect to see unprecedented resources pouring into Georgia as it will become the center of national politics for the month. As of this writing there is still a path to both Democratic or Republican Senate majorities without Georgia, time – and vote counting in Arizona and Nevada – will tell. The Townsend Public Affairs team will provide an update on the state of play in the US Senate in the coming weeks. Control of the U.S. House of Representatives Entering election night, the general consensus among Washington insiders and political leaders was that Republicans would gain control of the U.S. House of Representatives majority and possibly even do so in a historic wave. It became clear early in the evening that these predictions would not come to fruition. As of November 9th, the most likely outcome appears to be a narrow Republican majority, while many races across the country remain too early to call and the final composition of the House remains unknown. There even remains a narrow, albeit unlikely, path for Democrats to maintain their majority in the House. The final outcome could take days to determine as states like California, Arizona, Nevada, and others finalize their vote counts. A change in the control of the House sets up leadership elections, where it is largely expected that California Republican Representative Kevin McCarthy will be selected by the House GOP Conference as their nominee for Speaker of the House. The official election of the Speaker takes place on January 3, 2023 during the opening session of the 118th Congress where a vote of the full House membership takes place. Should McCarthy only have a narrow majority to work with, his path to the Speakership could be a bumpy one. Members of the Freedom Caucus have made it known that they are not fans of McCarthy, and they may try to use their leverage to extract concessions from McCarthy in exchange for their support. House Republican leadership will be rounded out with Louisiana Representative Steve Scalise as Majority Leader, and a competitive race for Majority Whip. Leaders determine what legislation comes to the floor, who serve on what committees, and make final decisions on top legislative negotiations, among many other roles. Another unknown is the future for current House Speaker Nancy Pelosi and her role in the House Democratic Caucus. Many aspiring leaders had hoped a Republican wave would lead to a clean Page 12 of 132 General Election Summary 4 transition between Pelosi and a new generation of leaders. With the House majority still not called, Pelosi’s future remains up in the air. Look for an announcement in the coming days, or immediately after majority control of the House is determined. House Democrats are scheduled to hold their leadership elections after Thanksgiving, giving them time to sort out the leadership puzzle. U.S. House of Representatives - California Races In California, the decennial redistricting process led to a number of competitive races, retirements, and candidates competing for new voters in new districts. Around a dozen of California’s fifty-two House seats were considered competitive leading up to Election Day. Many of these seats remain too close to call as of this writing. Remaining ballots will need to be counted before a final winner is determined later in November. In California’s 3rd Congressional District, Republican State Assembly Member Kevin Kiley holds an early lead over Democrat Kermit Jones. This newly drawn district favors Republicans and will bring a new member to the State’s delegation. In California’s 13th Congressional District, Democratic State Assembly Member Adam Gray and Republican Businessman John Duarte are locked in a close race to fill an open seat in the northern San Joaquin Valley. The one-point margin separating them will change as vote counting continues. In California’s 15th Congressional District, a Democrat-on-Democrat race between Kevin Mullin and David Canepa remains too early to call, with Assembly Member Kevin Mullin holding a ten point lead after election night. The race is to replace retiring Representative Jackie Speier and will bring a new member to California’s Congressional delegation. In California’s 22nd Congressional District, incumbent Republican Representative David Valadao (R) holds an early lead over Democratic State Assembly Member Rudy Salas. This race received national attention as Representative Valadao would be one of only two Republican Representatives who voted to impeach President Donald Trump remaining in Congress. The race remains too early to call. In California’s 27th Congressional District, incumbent Republican Representative Mike Garcia declared victory over Democrat Christy Smith. The race was their third encounter on the ballot with Garcia prevailing each time. In 2020, Garcia defeated Smith by a mere 333 votes. Even with outstanding ballots to be counted, Garcia appears to have again beaten the odds in this highly competitive district. In California’s 41st Congressional District, long-time Republican incumbent, and dean of the California Delegation, Representative Ken Calvert is down to Democratic challenger Will Rollins. Representative Calvert was drawn into a new district that included portions of the Coachella Valley. Although this race was deemed competitive prior to Election Day many felt that it favored Representative Calvert. The race remains too early to call and further vote counting will determine if Representative Calvert can overcome a nearly 10,000 vote election-day deficit and win a sixteenth term in the House. In California’s 47th Congressional District, incumbent Democratic Representative Katie Porter is embroiled in a tight race with Republican challenger Scott Baugh. Porter first came to Congress during the Democratic wave election of 2018 by flipping a Republican Orange County seat to the Page 13 of 132 General Election Summary 5 Democratic column. Porter managed to win reelection in 2020 but has faced a new challenge in 2022 due to redistricting. The race is within one percentage point at the time of writing. In California’s 49th Congressional District incumbent Democrat Representative Mike Levin faced a late surge from Republican challenger Brian Marryott, leading to a calling of the cavalry in his defense. President Joe Biden stumped for Representative Levin the week before the election and as of November 9th, the race remains too early to call, with Representative Levin holding a two-point lead. California will send several new Representatives to Congress due to key retirements. Long Beach Mayor Robert Garcia will represent the new 42nd Congressional District replacing retiring Representative Alan Lowenthal and State Senator Sydney Kamlager will represent the new 37th District vacated by Representative Karen Bass who ran for Mayor of Los Angeles. Vote counting in California will take weeks to complete and none of these races are final until certified by the Secretary of State by December 16, 2022. The Townsend Public Affairs team will provide updates as the vote counting continues. State Outcomes Constitutional Officers While most of the focus was drawn to Congressional races and their outcomes for federal partisan majorities in both houses, California’s General Election featured elections for all Constitutional Officers, seven statewide Propositions, in addition to numerous State legislative races – many of which had no incumbents. For statewide contests, unofficial vote data points to all incumbent constitutional officers being re- elected by wide margins, including Governor Newsom, Lieutenant Governor Eleni Kounalakis, and Attorney General Rob Bonta. The race for State Controller, between Democrat Malia Cohen and Republican Lanhee Chen, was the only constitutional office that did not have an incumbent running. While the race for Controller was closer than the other statewide contests, Malia Cohen has a near 7-point advantage over her challenger, making it likely that Democrats will continue to control all statewide constitutional offices. Statewide Propositions Voters were asked to weigh in on a range of issues on the ballot, ranging from taxes to help support investments to combat climate change, to the right to access abortion services, to funding for arts and music education, to a referendum on legislation restricting the sale of flavored tobacco. There were several high-profile voter initiatives on Tuesday’s ballot, including the online sports wagering measure Proposition 27, which generated the most spending on a single initiative in the state’s history. Proposition 1, which amends the California Constitution to enshrine a fundamental right to reproductive freedom, was placed on the ballot by the State Legislature via Senate Constitutional Amendment (SCA) 10 authored by Senate President Pro Tem Atkins. Proposition 1 was supported by Planned Parenthood and its affiliates, California Democratic Legislative leaders, and medical groups. Californian voters were overwhelmingly supportive of the measure, which garnered 65% of the vote, constituting the highest win margin of any of the seven total proposed voter initiatives on the ballot. Page 14 of 132 General Election Summary 6 The two gambling-related initiatives, Proposition 26 and 27, which were arguably the most contentious and expensive measures on the 2022 ballot, both failed by significant margins. Proposition 26 would have legalized dice games and roulette and in-person sports wagering at tribal casinos and the state’s four horse racetracks. The measure was sponsored by a coalition of California tribes, who sought to qualify a measure that would undermine the non-tribe sponsored online sports wagering measure, Proposition 27. Ultimately, Proposition 26 only garnered 30% of the total vote, with 70% voting against it. Similarly, Proposition 27, which was sponsored by online sports betting giants Fan Duel and DraftKings, failed by an even greater margin with only 16.7% of the total vote. A combined total of $408 million was spent by the proponents and opponents on the Proposition 27 campaign – the most expensive in the State’s history. The measure would have legalized online sports wagering within the state, which trails a 2018 action from the Supreme Court to legalize it on the federal level. Proposition 28 requires the state to add an amount equal to 1% of Prop. 98 funding — money guaranteed for public schools and community colleges in the state budget — for music and arts education. The measure will not increase taxes but would increase the General Fund set aside for education spending by roughly $1 billion annually. This measure was supported by parents and educational groups and easily passed, with more than 60% of the vote in early returns. Proposition 29, which proposed to regulate the State’s dialysis clinics, was placed before voters for the third time in the last six years. Similar to the previous two times the measure was up for consideration, voters rejected the proposed initiative. In a sign that voters may be tiring of be asked to weigh in on this issue, voters rejected Proposition 29 with nearly 70% of voters opposing the measure. Proposition 30 also rose to the ranks of notable and expensive voter initiative campaigns. This measure would have imposed a 1.75% personal income tax increase on Californians for the share of their income above $2 million per year to fund a suite of climate programs. Specifically, the proposition would have created a new revenue stream to subsidize zero-emission vehicles and fund wildfire response and prevention — between $3.5 billion to $5 billion annually. The measure was supported by the California Democratic Party, as well as by the rideshare company Lyft, who would have benefitted from the funds that would have aided in the company’s fleet transition to zero emissions vehicles. Notably, Governor Newsom came out against the measure despite his recent legislative efforts to expand greenhouse gas reduction efforts and a transition to zero emission vehicles, citing concerns with Lyft’s aim to directly profit from a new tax on voters. Unofficial election results show that the measure failed after only receiving 40% of the vote. Voters also considered Proposition 31, a referendum to decide whether to overturn a 2020 law that prohibits the sale of some flavored tobacco products. A “yes” vote upheld the current law; a “no” vote would have struck down the law and allow the sale of flavored tobacco products. The ban includes flavored cigarettes, e-cigarettes, pods for vape pens, tank-based systems and chewing tobacco. The measure passed, with over 62% of the vote. Ultimately, it appears that California voters have approved three of the seen propositions that were placed on the ballot: Proposition 1, which codifies reproductive freedoms in the Constitution; Proposition 28, which dedicates increased funding to K-12 arts and music programs; and Proposition 31, which imposes a statewide ban on most flavored tobacco products, including vapes. Page 15 of 132 General Election Summary 7 State Legislative Races In addition to the Statewide voter initiatives, voters were asked to consider their local legislative representatives. In the past year, the decennial redistricting process caused numerous lawmakers to move, battle for new district spots, or retire. This, coupled with many legislators that were set to be impacted by term limits in 2024, resulted in 10 open State Senate seats and 19 open Assembly seats, the largest such number of open legislative seats in a decade. As of Wednesday morning, it appears that both the Senate and Assembly will maintain their Democratic supermajorities; however, the exact size of each caucus is still unknown as there are numerous seats that are still too close to call. New district boundaries that one would otherwise expect to have safe elections, materialized into some races too close to call. In the Senate, these races include incumbent Senator Melissa Hurtado (D-Bakersfield) who is battling Republican David Shepard for the newly drawn 14th Senate District seat. Senator Hurtado currently represents a portion of the 14th Senate District, but Republicans had identified this seat as a possible pickup, given the political makeup of the new district. In the Assembly, there are currently three races where the incumbent does not have a certain victory. These races include Assembly Member Ken Cooley (D-Rancho Cordova), who is in a close race with Republican Josh Hoover for his suburban Sacramento seat. Another unexpectedly tight race is between incumbent Assembly Member Sharon Quirk-Silva (D-Fullerton) and Republican Soo Yoo for Assembly District 65. Overall, out of the 20 Senate races, there are five that do not have enough voting data to officially call the race. Out of the 80 Assembly races, there are six that also are too close to call as of Wednesday, November 9th. Looking forward, all re-elected and newly elected members will be sworn in on December 5, 2022, as the Legislature will convene for the 2023-24 Legislative Session. Upon the convening of the Legislature for the 2023-24 Legislative Session, there may be changes to the Assembly Speakership, policy committee chairs, and other legislative leadership positions. After being sworn in, the Legislature will adjourn until January 4, 2023, though it is possible that they could return to Sacramento to consider legislation related to high gas prices under a special session of the Legislature called by Governor Newsom. Individual Race Results Below please find the results of the races for Statewide Propositions, State Senate, State Assembly, and California delegation of Congress. It should be noted that the results are current as of 1:00pm on Wednesday, November 9th. these numbers will continue to change as unprocessed ballots continue to be tabulated across the State. Counties have until December 9th to report the final outcomes to the Secretary of State. The results will be certified by the Secretary of State on December 16th. Page 16 of 132 General Election Summary 8 Statewide Contests Governor Gavin Newsom (D)* – 57.6% Brian Dahle (R) – 42.4% Lieutenant Governor Eleni Kounalakis (D)* – 57.7% Angela Underwood Jacobs (R) – 42.3% Secretary of State Shirley Webber (D)* – 58.0% Rob Bernosky (R) – 42.0%% Controller Malia Cohen (D) – 53.6% Lanhee Chen (R) – 46.4% Treasurer Fiona Ma (D)* – 57.1% Jack Guerrero (R) – 42.9% Attorney General Rob Bonta (D)* – 57.2% Nathan Hochman (R) – 42.8% Insurance Commissioner Ricardo Lara (D)* – 57.9% Robert Howell (R) – 42.1% Superintendent of Public Instruction Tony Thurmond* – 62.7% Lance Christensen – 37.3% United States Senate (Full Term) Alex Padilla (D)* – 59.0% Mark Meuser (R) – 41.0% Statewide Propositions Proposition 1 Constitutional Right to Reproductive Freedom Yes – 65.0% No – 35.0% Proposition 26 Sports Wagering on Tribal Lands Yes – 29.9% No – 70.1% Proposition 27 Online Sports Wagering Outside Tribal Lands Yes – 16.7% No – 83.3% Proposition 28 Public School Arts/Music Education Funding Yes – 61.5% No – 38.5% Proposition 29 Regulates Kidney Dialysis Clinics Yes – 30.1% No – 69.9% Proposition 30 Tax to Fund ZEV/Wildfire Programs Yes – 40.9% No – 59.1% Proposition 31 Prohibition on Sale of Flavored Tobacco Yes – 62.3% No – 37.7% Page 17 of 132 General Election Summary 9 State Senate * Denotes incumbent member of the Senate Senate District 2 Mike McGuire (D)* – 72.0% Gene Yoon (R) – 28.0% Senate District 4 Tim Robertson (D) – 48.6% Marie Alvarado-Gil (D) – 51.4% Senate District 6 Paula Villescaz (D) – 43.3% Roger Niello (R) – 56.7% Senate District 8 Dave Jones (D) – 48.0% Angelique Ashby (D) – 52.0% Senate District 10 Lily Mei (D) – 50.7% Aisha Wahab (D) – 49.3% Senate District 12 Shannon Grove (R)* – 68.7% Susanne Gundy (D) – 31.3% Senate District 14 Anna Caballero (D)* – 55.3% Amnon Shor (R) – 44.7% Senate District 16 David Shepard (R) – 52.6% Melissa Hurtado (D)* – 47.4% Senate District 18 Steve Padilla (D) – 58.7% Alejandro Galicia (R) – 41.3% Senate District 20 Daniel Hertzberg (D) – 45.7% Caroline Menjivar (D) – 54.3% Senate District 22 Susan Rubio (D)* – 55.5% Vincent Tsai (R) – 44.5% Senate District 24 Ben Allen (D)* – 62.3% Kristina Irwin (R) – 37.7% Senate District 26 Maria Elena Durazo (D)* – 78.5% Claudia Agraz (R) – 21.5% Senate District 28 Lola Smallwood-Cuevas (D) – 55.7% Cheryl C. Turner (D) – 44.3% Senate District 30 Bob Archuleta (D)* – 56.6% Mitch Clemmons (R) – 43.4% Senate District 32 Kelly Seyarto (R) – 59.2% Brian Nash (D) – 40.8% Senate District 34 Tom Umberg (D)* – 58.4% Rhonda Shader (R) – 45.2% Senate District 36 Janet Nguyen (R) – 58.4% Kim Carr (D) – 41.6% Senate District 38 Matt Gunderson (R) – 49.7% Catherine Blakespear (D) – 50.3% Senate District 40 Brian W. Jones (R)* – 55.2% Joseph C. Rocha (D) – 44.8% Page 18 of 132 General Election Summary 10 State Assembly * Denotes incumbent member of the Assembly Assembly District 1 Megan Dahle (R)* – 60.6% Belle Starr Sandwith (D) – 39.4% Assembly District 2 Jim Wood (D)* – 68.0% Charlotte Svolos (R) – 32.0% Assembly District 3 James Gallagher (R)* – 62.9% David Leon Zink (D) – 37.1% Assembly District 4 Cecilia Aguiar-Curry (D)* – 65.5% Bryan Pritchard (R) – 34.5% Assembly District 5 Rebecca L Chenoweth (D) – 40.6% Joe Patterson (R) – 59.4% Assembly District 6 Kevin McCarty (D)* – 62.8% Cathy Cook (R) – 37.2% Assembly District 7 Ken Cooley (D)* – 50.3% Josh Hoover (R) – 49.7% Assembly District 8 Jim Patterson (R) – 74.3% Thomas Edward Nichols (LIB) – 25.7% Assembly District 9 Heath Flora (R)* – 68.3% Mushtaq A Tahirkheli (D) – 31.7% Assembly District 10 Stephanie Nguyen (D) – 58.0% Eric Guerra (D) – 42.0% Assembly District 11 Lori D. Wilson (D)* – 58.4% Jenny Leilani Callison (NPP) – 41.6% Assembly District 12 Damon Connolly (D) – 54.6% Sara Aminzadeh (D) – 45.4% Assembly District 13 Carlos Villapudua (D)* – 61.6% Veronica Vargas (D) – 38.4% Assembly District 14 Buffy Wicks (D)* – 85.2% Richard Kinney (R) – 14.8% Assembly District 15 Tim Grayson (D)* – 66.8% Janell Elizabeth Proctor (R) – 33.2% Assembly District 16 Rebecca Bauer-Kahan (D)* – 64.3% Joseph A. Rubay (R) – 35.7% Assembly District 17 Matt Haney (D)* – 68.3% David Campos (D) – 31.7% Assembly District 18 Mia Bonta (D)* – 85.8% Mindy Pechenuk (R) – 14.2% Assembly District 19 Phil Ting (D)* – 78.6% Karsten Weide (R) – 21.4% Assembly District 20 Liz Ortega (D) – 58.6% Shawn Kumagai (D) – 41.4% Assembly District 21 Diane Papan (D) – 72.6% Giselle Hale (D) – 27.4% Assembly District 22 Juan Alanis (R) – 57.4% Jessica Self (D) – 42.6% Assembly District 23 Marc Berman (D)* – 71.8% Tim Dec (R) – 28.2% Assembly District 24 Alex Lee (D)* – 66.8% Bob Brunton (R) – 33.2% Page 19 of 132 General Election Summary 11 Assembly District 25 Ash Kalra (D)* – 68.0% Ted Stroll (R) – 32.0% Assembly District 26 Evan Low (D)* – 72.1% Tim Gorsulowsky (R) – 27.9% Assembly District 27 Esmeralda Soria (D) – 50.3% Mark Nicholas Pazin (R) – 49.7% Assembly District 28 Gail Pellerin (D) – 65.0% Liz Lawler (R) – 35.0% Assembly District 29 Robert Rivas (D)* – 63.4% Stephanie L. Castro (R) – 36.6% Assembly District 30 Dawn Addis (D) – 60.8% Vicki Nohrden (R) – 39.2% Assembly District 31 Joaquin Arambula (D)* – 59.1% Dolce Misol Calandra (R) – 40.9% Assembly District 32 Vince Fong (R)* – 100.0% Assembly District 33 Devon J. Mathis (R)* – 63.1% Jose Sigala (D) – 36.9% Assembly District 34 Thurston “Smitty” Smith (R)* – 42.1% Tom Lackey (R)* – 57.9% Assembly District 35 Leticia Perez (D) – 41.1% Jasmeet Bains (D) – 58.9% Assembly District 36 Eduardo Garcia (D)* – 56.4% Ian M. Weeks (R) – 43.6% Assembly District 37 Gregg Hart (D) – 58.0% Mike Stoker (R) – 42.0% Assembly District 38 Steve Bennett (D)* – 60.4% Cole Brocato (R) – 39.6% Assembly District 39 Paul Andre Marsh (R) – 45.2% Juan Carrillo (D) – 54.8% Assembly District 40 Suzette Martinez Valladares (R)* – 54.3% Pilar Schiavo (D) – 45.7% Assembly District 41 Chris Holden (D)* – 57.7% Michael McMahon (R) – 42.3% Assembly District 42 Jacqui Irwin (D)* – 54.2% Lori Mills (R) – 45.8% Assembly District 43 Luz Maria Rivas (D)* – 70.2% Siaka Massaquoi (W/I) (R) – 29.8% Assembly District 44 Laura Friedman (D)* – 66.3% Barry Curtis Jacobsen (R) – 33.7% Assembly District 45 James C. Ramos (D)* – 60.4% Joseph W. Martinez (R) – 39.6% Assembly District 46 Jesse Gabriel (D)* – 60.3% Dana Caruso (R) – 39.7% Assembly District 47 Christy Holstege (D) – 55.1% Greg Wallis (R) – 44.9% Assembly District 48 Blanca Rubio (D)* – 55.9% Ryan Maye (R) – 44.1% Page 20 of 132 General Election Summary 12 Assembly District 49 Mike Fong (D)* – 62.2% Burton Brink (R) – 37.8% Assembly District 50 Eloise Gomez Reyes (D)* – 56.5% Sheela Stark (R) – 43.5% Assembly District 51 Rick Chavez Zbur (D) – 54.9% Louis Abramson (D) – 45.1% Assembly District 52 Wendy Carrillo (D)* – 60.3% Mia Livas Porter (D) – 39.7% Assembly District 53 Freddie Rodriguez (D)* – 57.8% Toni Holle (R) – 42.2% Assembly District 54 Miguel Santiago (D)* – 74.3% Elaine Alaniz (W/I) (R) – 25.7% Assembly District 55 Isaac G. Bryan (D)* – 80.1% Keith Girolamo Cascio (R) – 19.9% Assembly District 56 Lisa Calderon (D)* – 54.1% Jessica Martinez (R) – 45.9% Assembly District 57 Reggie Jones-Sawyer (D)* – 100% Assembly District 58 Sabrina Cervantes (D)* – 56.5% Bernard William Murphy (R) – 43.5% Assembly District 59 Phillip Chen (R)* – 72.3% Leon Q. Sit (W/I) (NPP) – 27.7% Assembly District 60 Hector Diaz-Nava (R) – 57.4% Corey A. Jackson (D) – 42.6% Assembly District 61 Robert Pullen-Miles (D) – 60.9% Tina Simone McKinnor (D) – 39.1% Assembly District 62 Anthony Rendon (D)* – 63.2% Maria Estrada (D) – 36.8% Assembly District 63 Fauzia Rizvi (D) – 46.5% Bill Essayli (R) – 53.5% Assembly District 64 Raul Ortiz, Jr. (R) – 44.0% Blanca Pacheco (D) – 56.0% Assembly District 65 Mike Anthony Gipson (D)* – 64.4% Fatima Iqbal-Zubair (D) – 35.6% Assembly District 66 Al Muratsuchi (D)* – 55.5% George Barks (R) – 44.5% Assembly District 67 Sharon Quirk-Silva (D)* – 49.7% Soo Yoo (R) – 50.3% Assembly District 68 Avelino Valencia (D) – 57.9% Mike Tardif (R) – 42.1% Assembly District 69 Josh Lowenthal (D) – 59.9% Al Austin II (D) – 40.1% Assembly District 70 Diedre Thu-Ha Nguyen (D) – 44.4% Tri Ta (R) – 55.6% Assembly District 71 Matt Rahn (R) – 50.2% Kate Sanchez (R) – 49.8% Assembly District 72 Judie Mancuso (D) – 43.0% Diane Dixon (R) – 57.0% Assembly District 73 Cottie Petrie-Norris (D)* – 53.8% Steven “Steve” Choi (R)* – 46.2% Assembly District 74 Laurie Davies (R)* – 54.2% Chris Duncan (D) – 45.8% Page 21 of 132 General Election Summary 13 Assembly District 75 Marie Waldron (R)* – 66.8% Randy Voepel (R)* – 33.2% Assembly District 76 Brian Maienschein (D)* – 49.6% Kristie Bruce-Lane (R) – 50.4% Assembly District 77 Tasha Boerner Horvath (D)* – 58.2% Dan Downey (R) – 41.8% Assembly District 78 Chris Ward (D)* – 65.2% Eric E. Gonzales (R) – 34.8% Assembly District 79 Akilah Weber (D)* – 61.2% Corbin Sabol (R) – 38.8% Assembly District 80 Georgette Gómez (D) – 28.2% David Alvarez (D) – 71.8% House of Representatives * Denotes incumbent member of the House of Representatives Congressional District 1 Doug LaMalfa (R)* 59.9 % Max Steiner (D) 40.1 % Congressional District 2 Jared Huffman (D)* 71.9 % Douglas Brower 28.1 % Congressional District 3 Kevin Kiley (R) 53.1 % Kermit Jones (D) 46.9 % Congressional District 4 Mike Thompson (D)* 67.7 % Matt Brock (R) 32.3 % Congressional District 5 Tom McClintock (R)* 60.1 % Michael J. “Mike” Barkley (D) 39.9 % Congressional District 6 Ami Bera (D)* 55.8 % Tamika Hamilton (R) 44.2 % Congressional District 7 Doris Matsui (D)* 65.7 % Max Semenenko (R) 34.3 % Congressional District 8 John Garamendi (D)* 74.5 % Rudy Recile (R) 25.5 % Congressional District 9 Josh Harder (D)* 56.4 % Tom Patti (R) 43.6 % Congressional District 10 Mark DeSaulnier (D)* 79.5 % Michael Ernest Kerr (GRN) 20.5 % Congressional District 11 Nancy Pelosi (D)* 81.4 % John Dennis (R) 18.6 % Congressional District 12 Barbara Lee (D)* 87.1 % Stephen Slauson (R) 12.9 % Congressional District 13 John Duarte (R) 49.9 % Adam Gray (D) 50.1 % Congressional District 14 Eric Swalwell (D)* 65.7 % Alison Hayden (R) 34.3 % Congressional District 15 Kevin Mullin (D) 55.9 % David J. Canepa (D) 44.1 % Congressional District 16 Anna G. Eshoo (D)* 58.4 % Rishi Kumar (D) 41.6 % Page 22 of 132 General Election Summary 14 Congressional District 17 Ro Khanna (D)* 69.6 % Ritesh Tandon (R) 30.4 % Congressional District 18 Zoe Lofgren (D)* 64.9 % Peter Hernandez (R) 35.1 % Congressional District 19 Jimmy Panetta (D)* 67.3 % Jeff Gorman (R) 32.7 % Congressional District 20 Kevin McCarthy (R)* 67.6 % Marisa Wood (D) 32.4 % Congressional District 21 Jim Costa (D)* 53.4 % Michael Maher (R) 46.6 % Congressional District 22 Rudy Salas (D) 46.0 % David G. Valadao (R)* 54.0 % Congressional District 23 Jay Obernolte (R)* 60.8 % Derek Marshall (D) 39.2 % Congressional District 24 Salud Carbajal (D)* 60.7 % Brad Allen (R) 39.3 % Congressional District 25 Raul Ruiz (D)* 61.4 % Brian E. Hawkins (R) 38.6 % Congressional District 26 Julia Brownley (D)* 53.9 % Matt Jacobs (R) 46.1 % Congressional District 27 Mike Garcia (R)* 57.6 % Christy Smith (D) 42.4 % Congressional District 28 Judy Chu (D)* 62.8 % Wes Hallman (R) 37.2 % Congressional District 29 Tony Cardenas (D)* 62.0 % Angélica María Dueñas (D) 38.0 % Congressional District 30 Adam B. Schiff (D)* 72.1 % G. “Maebe A. Girl” Pudio (D) 27.9 % Congressional District 31 Grace F. Napolitano (D)* 55.0 % Daniel Bocic Martinez (R) 45.0 % Congressional District 32 Brad Sherman (D)* 64.8 % Lucie Lapointe Volotzky (R) 35.2 % Congressional District 33 Pete Aguilar (D)* 56.5 % John Mark Porter (R) 43.5 % Congressional District 34 Jimmy Gomez (D)* 53.1 % David Kim (D) 46.9 % Congressional District 35 Norma J. Torres (D)* 55.8 % Mike Cargile (R) 44.2 % Congressional District 36 Ted W. Lieu (D)* 64.8 % Joe E. Collins III (R) 35.2 % Congressional District 37 Sydney Kamlager (D) 61.4 % Jan C. Perry (D) 38.6 % Congressional District 38 Linda T. Sánchez (D)* 53.3 % Eric J. Ching (R) 46.7 % Congressional District 39 Mark Takano (D)* 60.4 % Aja Smith (R) 39.6 % Congressional District 40 Asif Mahmood (D) 40.9 % Young Kim (R)* 59.1 % Page 23 of 132 General Election Summary 15 Congressional District 41 Ken Calvert (R)* 43.8 % Will Rollins (D) 56.2 % Congressional District 42 Robert Garcia (D) 63.8 % John Briscoe (R) 36.2 % Congressional District 43 Maxine Waters (D)* 73.9 % Omar Navarro (R) 26.1 % Congressional District 44 Nanette Diaz Barragan (D)* 68.0 % Paul Jones (R) 32.0 % Congressional District 45 Michelle Steel (R)* 55.3 % Jay F. Chen (D) 44.7 % Congressional District 46 Lou Correa (D)* 58.1 % Christopher J. Gonzales (R) 41.9 % Congressional District 47 Katie Porter (D)* 50.3 % Scott Baugh (R) 49.7 % Congressional District 48 Darrell Issa (R)* 60.1 % Stephen Houlahan (D) 39.9 % Congressional District 49 Mike Levin (D)* 51.0 % Brian Maryott (R) 49.0 % Congressional District 50 Scott Peters (D)* 60.0 % Corey Gustafson (R) 40.0 % Congressional District 51 Sara Jacobs (D)* 59.0 % Stan Caplan (R) 41.0 % Congressional District 52 Juan Vargas (D)* 64.4 % Tyler Geffeney (R) 35.6 % Page 24 of 132 ITEM NO. 8.1. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Minutes of the Board of Directors Meeting Held October 24, 2022 RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: 1. Draft Minutes for October 24, 2022 Board Meeting Page 25 of 132 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2022 at 5:30 p.m. 1 2022-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Monday, October 24, 2022, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 5:32 p.m. 3. PLEDGE OF ALLEGIANCE Vice President Jones led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, PhD, President Mark Toy, General Manager Brooke Jones, Vice President Doug Davert, Assistant General Manager Trudi DesRoches John DeCriscio, Operations Manager Tom Lindsey Gina Knight, Human Resources/Risk Manager Delia Lugo, Finance Manager DIRECTORS ABSENT Rosanne Weston, Engineering Manager Phil Hawkins Alison Martin, Public Affairs Manager Annie Alexander, Board Secretary Sophia Phuong, Senior Accountant ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA General Manager Toy noted that a report included with Item No. 10.6. had been revised due to a mathematical error. Copies of the revised page were made available to the Board and public. 6. PUBLIC COMMENTS Al Nederhood, resident, commented on the content of a political campaign mailer associated with the upcoming election. Page 26 of 132 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2022 at 5:30 p.m. 2 2022-XXX 7. ACTION CALENDAR 7.1.Annual Audit Report for Fiscal Year Ended June 30, 2022 Staff introduced Mr. Ryan Domino, Partner of Lance, Soll & Lunghard, LLP, who reviewed key information contained in the audit report. He noted that the District received an unmodified “clean” opinion with no significant deficiencies in internal controls, no material non-compliance with laws, regulations, grant agreements, and contracts, no audit adjustments required, and no difficulties conducting the audit or disagreements with management regarding accounting policies. Director Lindsey commended staff for their work related to the audit process. President Miller inquired about the audit process for the District’s Other Postemployment Benefits (OPEB) liabilities. Mr. Domino explained that only the assumptions used to calculate the OPEB liabilities are audited. Director DesRoches made a motion, seconded by Director Jones, to receive and file the Yorba Linda Water District Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2022, the Report on Internal Control, and the Communications to Those in Governance Letter. Motion carried 4-0- 0-1 on a roll call vote with Director Hawkins absent. 8. ADJOURN TO YORBA LINDA FINANCING AUTHORITY REGULAR MEETING A recess was declared at 5:59 p.m. to conduct the Financing Authority Regular Meeting. The meeting was reconvened at 6:02 p.m. 9. INTRODUCTIONS AND PRESENTATIONS 9.1.Elected Officials Liaison Reports None. 9.2.Federal and State Legislative Update Staff briefly reported that Governor Newsom’s COVID-19 State of Emergency would be ending February 28, 2023, which will impact the process for conducting Board meetings via teleconference during emergencies. 10. CONSENT CALENDAR President Miller opened the floor to public comment on any items on the Consent Calendar for which there was none. Page 27 of 132 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2022 at 5:30 p.m. 3 2022-XXX Director DesRoches requested to remove Item No. 10.4 from the Consent Calendar for separate action. Director DesRoches made a motion, seconded by Director Miller, to approve the Consent Calendar. Motion carried 4-0-0-1 on a roll call vote with Director Hawkins Absent. 10.1.Minutes of the Board of Directors Meeting Held September 13, 2022 and September 26, 2022 Recommendation: That the Board of Directors approve the minutes as presented. 10.2.Authorize Continuation of Virtual/Teleconference Board Meetings Recommendation: That the Board of Directors adopt Resolution No. 2022-XX authorizing virtual Board meetings pursuant to AB 361 for 30 days based on the findings that (1) the Board has considered the circumstances of the state of emergency for COVID-19, and that (2) state and local officials continue to impose or recommend measures to promote social distancing. 10.3.Amend Conflict of Interest Code Recommendation: That the Board of Directors adopt Resolution No. 2022-XX adopting a Conflict of Interest Code which supersedes all prior conflict of interest codes and amendments previously adopted. 10.5.Status of Communications Activities Recommendation: That the Board of Directors receive and file the monthly communications activities report. 10.6.Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $4,726,229.62. 10.7.Budget to Actual Statements for Months Ending July 31, 2022 and August 31, 2022 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the months ending July 31, 2022 and August 31, 2022. Page 28 of 132 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2022 at 5:30 p.m. 4 2022-XXX 10.8.Cash and Investment Report for Month Ending August 31, 2022 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the month ending August 31, 2022. 10.9.Update Securities Custody Agreement with US Bank for District Investments Recommendation: That the Board of Directors adopt Resolution No. 2022-XX authorizing the establishment of securities custody agreements with US Bank for District investments and superseding Resolution No. 2021-09. 10.10.Claim for Damages Filed by John Konstantinos Recommendation: That the Board of Directors reject and deny the claim filed by John Konstantinos. 10.11.Notice of Completion for BNSF Crossing Water Improvements Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for BNSF Crossing Water Improvement Project, J-2021- 02 and J-2021-19. 10.12.Award Construction Contract for the Timber Ridge Booster Pump Station Rehabilitation Project Recommendation: That the Board of Directors award the Construction Contract for the Timber Ridge Booster Pump Station Project to Pacific Hydrotech Corporation for $4,982,170.00, Job No. J-2020-37. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION 10.4. Adoption of Encroachment Policy General Counsel Gagen reviewed the purpose of establishing an encroachment policy and responded to questions regarding the proposed process for addressing encroachment issues. Discussion followed regarding the purpose of the declaration of restrictive covenants and how unauthorized encroachments affect District operations. General Counsel Gagen then noted that the template for the declaration of restrictive covenants was continually being updated and requested language be added to the policy indicating that the covenants were being adopted in substantial form which may be amended from time to time. Following additional discussion, the Board determined to defer consideration of this item to the next regular meeting in November to allow additional time for public review and incorporation of suggested revisions. Page 29 of 132 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2022 at 5:30 p.m. 5 2022-XXX 11. ACTION CALENDAR CONTINUED 11.1.2022 Wastewater Master Plan Staff provided an overview of major components contained in the 2022 Wastewater Master Plan including the status of existing infrastructure, average wastewater flow rates in comparison to water demand, and estimated number of residences still on septic. Staff also reviewed the scheduled wastewater capital improvement projects. Al Nederhood, resident, voiced his concerns related to the replacement of wastewater pipeline, increased housing density, reduction of flow due to state regulations for indoor water use, and enforcement of the District’s Fats Oils and Greases (FOG) Program. Discussion followed regarding elements of the FOG program, the relining of wastewater pipeline, and the District’s asset mapping system. Director DesRoches made a motion, seconded by Director Miller, to receive and file the 2022 Wastewater Master Plan. Motion carried 4-0-0-1 on a roll call vote with Director Hawkins absent. 12. DISCUSSION ITEMS 12.1.Review Legislative Platform No revisions were requested for preparation of the 2023 legislative platform. The final draft will be brought back to the Board for consideration at the next regular meeting. 13. REPORTS, INFORMATION ITEMS, AND COMMENTS 13.1.Director’s Reports Director Lindsey commented on the benefits of fostering positive relationships with neighboring city agencies and multiple events he attended throughout the community including state of the city events and facility dedications. The Board also commended staff for their efforts related to the District’s open house. President Miller briefly commented on the California Air Resources Board’s advanced clean fleets regulation. Page 30 of 132 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2022 at 5:30 p.m. 6 2022-XXX 13.2.General Manager’s Report General Manager Toy referenced his report in the agenda packet and noted his upcoming speaking engagements. Discussion briefly touched on the status of the helicopter hydrant project at the Diemer Water Treatment Plant. 13.3.General Counsel’s Report None. 13.4.Future Agenda Items and Staff Tasks President Miller requested an item be added to a future agenda to discussion the District’s investment options. 14. COMMITTEE REPORTS 14.1.Interagency Committee with MWDOC and OCWD (Miller / DesRoches) – Next meeting will be scheduled when needed. 14.2.Joint Agency Committee with City of Yorba Linda (Miller / Lindsey) – Next meeting is scheduled Monday, November 7, 2022 at 4:00 p.m. 14.3.Joint Agency Committee with City of Placentia (Jones / Lindsey) – Next meeting is scheduled Tuesday, October 25, 2022 at 4:00 p.m. 15. BOARD OF DIRECTORS ACTIVITY CALENDAR 15.1 Meetings from October 25 – November 30, 2022 16. CLOSED SESSION The Board entered Closed Session at 7:17 p.m. 16.1.Conference with Legal Counsel – Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases: One 16.2.Conference with Legal Counsel – Initiation of Litigation Pursuant to Paragraph (4) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases: Two Page 31 of 132 Minutes of the YLWD Board of Directors Regular Meeting Held October 24, 2022 at 5:30 p.m. 7 2022-XXX 16.3.Conference with Legal Counsel - Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: Irvine Ranch Water District v. Orange County Water District, et al. (Los Angeles County Superior Court - Case No. BS168278) 16.4.Conference with Legal Counsel - Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: YLWD v. Alex Winsberg (Orange County Superior Court- Case No. 30-2022-01284814-CU-OR-CJC) 16.5.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board returned to Open Session at 9:35 p.m. 17. REPORT FROM CLOSED SESSION No reportable action was taken during closed session. 18. ADJOURNMENT 18.1.Director Lindsey made a motion, seconded by Director Jones, to adjourn the meeting at 9:35 p.m. Motion passed 4-0-0-1 on a roll call vote with Director Hawkins absent. Annie Alexander Board Secretary Page 32 of 132 ITEM NO. 8.2. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Reauthorizing Continuation of Virtual/Teleconference Board Meetings RECOMMENDATION: That the Board of Directors reauthorize the continuation of virtual/teleconference meetings pursuant to AB 361 for an additional 30 days based on the findings that (1) the Board has reconsidered the circumstances of the state of emergency for COVID-19, and (2) state and local officials continue to impose or recommend measures to promote social distancing. BACKGROUND: At the October 24, 2022 Board meeting, pursuant to AB 361, the Board of Directors adopted Resolution No. 2022-30 and authorized the Board to continue to have remote meetings based on the continued state of emergency for COVID-19 and the finding that state and local officials have imposed or recommended measures to promote social distancing. If the Board wishes to continue to hold remote meetings pursuant to AB 361, and assuming a state of emergency is still in place, it must make similar findings at least every 30 days. At the time this report was prepared, there was a continued state of emergency for COVID-19, and state and local officials continued to recommend measures to promote social distancing. This item is on the agenda for the Board to consider whether to continue remote meetings pursuant to AB 361 for an additional 30 days and to make the appropriate findings. Page 33 of 132 ITEM NO. 8.3. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Alison Martin, Public Affairs Manager SUBJECT: Legislative Platform for Calendar Year 2023 RECOMMENDATION: That the Board of Directors approve the proposed legislative platform for calendar year 2023. SUMMARY: The text of the 2023 Legislative Platform is attached for Board consideration. BACKGROUND: The District works to influence legislation and funding opportunities in Sacramento and Washington, D.C. to promote fiscal stability, preserve local control, and support regulatory streamlining. The YLWD Legislative Platform serves as the guide by which the District actively engages with legislation through monitoring and communications activities. The YLWD Legislative Platform represents the District’s position on current or future issues that have the potential to impact the District or its interests. The Guiding Principles and Policy Statements will allow District staff and consultants to address legislative and regulatory issues promptly, without precluding the consideration of additional legislative and budget issues that may arise during the legislative session. Furthermore, the Legislative Platform is an important advocacy tool to present and deliver to elected officials who represent the YLWD service area locally or in Sacramento and Washington D.C. Sharing policy statements and positions on common legislative and regulatory issues with elected officials helps to shape policy decisions and positions YLWD to be a leader in the community for legislative and regulatory topics. PRIOR RELEVANT BOARD ACTION: October 13, 2021: The Board of Directors considered a draft Legislative Platform and provided directions for revisions. December 14, 2021: The Board of Directors adopted the 2022 Legislative Platform. October 24, 2022: The Board of Directors considered the 2022 Legislative Platform and stated they had no directions for revisions for the 2023 Legislative Platform. STRATEGIC PLAN INITIATIVES: Page 34 of 132 G1 5A - Meeting with lobbyists, representatives, and regulators at all levels (local/state/federal).; G1 5B - Actively participate with existing water/sewer organizations on regulatory and emerging issues.; G4 2D - Communicate emerging water quality and sewer issues/regulations. ATTACHMENTS: 1. YLWD 2022 Legislative Platform (For Reference) 2. YLWD 2023 Legislative Platform Page 35 of 132 2022 LEGISLATIVE PLATFORM Page 36 of 132 Page | 1 2022 Legislative Platform CONTENTS Contents ..................................................................................................... 1 Purpose ...................................................................................................... 2 Process ....................................................................................................... 3 Guiding Principles ....................................................................................... 4 Legislative Positions ................................................................................... 5 Water Supply ........................................................................................... 5 Water Quality ........................................................................................... 5 Water Use Efficiency ............................................................................... 6 Environment ............................................................................................ 6 Energy ..................................................................................................... 7 Fiscal ....................................................................................................... 7 Local Control ........................................................................................... 8 Other ....................................................................................................... 8 Page 37 of 132 Page | 2 2022 Legislative Platform PURPOSE This document serves as the guide by which the Yorba Linda Water District (YLWD) actively engages with legislation through monitoring and communications activities. The 2022 YLWD Legislative Platform represents the District’s position on current or future issues that have the potential to impact the District or its interests. Below are the Guiding Principles and Policy Statements that will allow District staff and consultants to address 2022 legislative and regulatory issues promptly, without precluding the consideration of additional legislative and budget issues that may arise during the legislative session. Furthermore, the 2022 Legislative Platform is an important advocacy tool to present and deliver to elected officials who represent the YLWD service area locally or in Sacramento and Washington D.C. Sharing policy statements and positions on common legislative and regulatory issues with elected officials helps to shape policy decisions and positions YLWD to be a leader in the community for legislative and regulatory topics. Page 38 of 132 Page | 3 2022 Legislative Platform PROCESS Legislative positions will be recommended by YLWD staff and the District’s legislative advocates and submitted to the Board of Directors for their consideration In times where the legislative position of the District is unable to go to the Board of Directors in time before it is acted upon in the Legislature, as long as it is in line with the adopted legislative platform or the position taken is the same as any local agency partners or association agencies including but not limited to the Association of California Water Agencies (ACWA), Metropolitan Water District of Southern California (MWDSC), the Municipal Water District of Orange County (MWDOC), Orange County Water District (OCWD), Orange County Sanitation District (OCSD) the California Special District’s Association (CSDA), Community Water Systems Alliance (CWSA), or the California Association of Sanitation Agencies (CASA), the Board President can sign position letters on behalf of the District. If the Board President takes any legislative position due to this process, the legislative position will still be brought before the next Board of Directors meeting after the fact for discussion and direction. Page 39 of 132 Page | 4 2022 Legislative Platform GUIDING PRINCIPLES PROMOTE FISCAL STABILITY Seek funding opportunities for YLWD projects through grants, appropriations, or other means. Help YLWD access additional funding sources that will promote local reliability projects. Support measures that promote fiscal stability, predictability, financial independence, and preserve the District’s financial independence. Oppose measures that do not provide adequate funding to the District such as unfunded mandates or mandated costs with no guarantee of local reimbursement or offsetting benefits. PRESERVE LOCAL CONTROL Preserve and protect the District’s powers, duties, and prerogatives to operate within its service area and to determine the policy direction of local affairs, and oppose legislation that preempts local authority. Local agencies should preserve authority and accountability for revenues raised and services provided, including maintaining the ability to charge for services rendered or collect proportional impact, connection, or capacity fees. SUPPORT REGULATORY STREAMLINING Support legislation that aims to streamline the regulatory environment by reducing regulation, reviewing regulation, or proposing regulations without affecting YLWD’s ability to operate safely and effectively. Oppose redundant regulatory processes or procedures that increase costs and add time to projects without justifiable benefits Page 40 of 132 Page | 5 2022 Legislative Platform LEGISLATIVE POSITIONS WATER SUPPLY  Support legislation that improves the supply and security of water to the Yorba Linda Water District service area, including stormwater capture and dry weather runoff.  Support legislation that aims to increase water recycling, potable reuse, groundwater recharge, above ground storage, and surface water development.  Support legislation that encourages, funds, and maintains water recycling systems like the Ground Water Replenishment System that is managed by Orange County Water District.  Support legislation and policies that provide for a solution to the problems in the Sacramento-San Joaquin River Delta that strikes a balance between agricultural demands and urban water needs.  Support funding opportunities that provide local reliability, conveyance, and storage facilities for YLWD.  Support declaring water desalination as extraordinary supply.  Support desalination projects where the cost provides good value because of the resilience achieved.  Reward districts that can prove their water use is recycled 100%. WATER QUALITY  Oppose legislation or policies that add redundant water testing, water quality, or environmental constraints to YLWD.  Support legislation and funding that helps agencies meet state and federal water quality standards.  Support legislation or regulations that aim to provide source-control measures at no cost to the District to prevent contaminants such as PFAS/PFOA from entering the water supply. Page 41 of 132 Page | 6 2022 Legislative Platform LEGISLATIVE POSITIONS WATER USE EFFICIENCY  Oppose legislation that establishes water conservation and water use efficiency programs that unreasonably constrain YLWD or its customers.  Oppose measures that fail to recognize augmented or alternative water supplies as an efficient use of water, or that fail to provide an adequate incentive for investments in such water, for potable or non-potable reuse.  Oppose measures that require water efficiency standards or performance measures that are infeasible, not practical, or fail to achieve a positive cost-benefit ratio. ENVIRONMENT  Support the goals of National Endangered Species Act Reform Coalition (NESARC).  Support legislation that aims to clarify, streamline, and modernize the California Environmental Quality Act (CEQA).  Support unique solutions and partnerships to collectively address and respond to natural disasters such as wildfires, including the continued use and expansion of Heli-Hydrants and emergency generators.  Support policies and legislation that help fund the cleanup and removal of PFAS/PFOA contaminants from groundwater supplies.  Support polluter-pays principles when assigning responsibility for the contamination and cleanup of environmentally destructive substances.  Support legislation or regulations that discourage the flushing of wipes or other foreign substances through the sewer system, unless they meet certain performance standards.  Oppose assigning superfund liability to water districts who treat water to remove PFAS. Page 42 of 132 Page | 7 2022 Legislative Platform LEGISLATIVE POSITIONS ENERGY  Oppose legislation that increases the cost of electricity or other utilities for YLWD.  Support legislation and policies that recognize hydroelectric power as a clean, renewable energy source and that its generation and use meet the greenhouse gas emission reduction compliance requirements called for in the Global Warming Solutions Act of 2006 (AB 32) and subsequent related legislation.  Monitor and support any legislative development that would provide relief for the use of diesel emergency power generators during State of Emergency events affecting the local electrical utility.  Oppose the removal of natural gas as a viable energy source. FISCAL  Support the development of bond or general fund programs for water supply development, including new surface and groundwater storage, water quality, recycled water, desalination, and water use efficiency related programs.  Oppose legislation that places unnecessary or unfair regulations on pension liabilities.  Support an equitable approach to the disbursement of State Revolving Fund revenues for a wide variety of projects.  Oppose legislation and regulations that tax water as a public goods charge and redistributes the revenue throughout the State.  Support state and federal revenue sources for water infrastructure projects that address water quality and reliability issues for disadvantaged and income-limited communities and residents that are not based upon regressive taxes.  Support the protection of local revenue for use by special districts and the maintenance of reserve accounts of water agencies.  Support efforts that seek to bring federal sources of funding to California for water infrastructure development and water management. Page 43 of 132 Page | 8 2022 Legislative Platform LEGISLATIVE POSITIONS LOCAL CONTROL  Oppose legislation that seeks to diminish or alter the authority of the Board of Directors to manage the District’s water systems or operations, impose unreasonable unfunded state mandated programs, or increase fees or taxes on YLWD customers.  Oppose legislation that would degrade YLWD’s authority in the area of public contracts, procurement, financial administration, public records, and human resources.  Oppose legislation that would dissolve YLWD or transfer its duties to other agencies.  Oppose legislation that would affect YLWD’s ability to protect and secure critical infrastructure from cyber or physical threats and damages.  Oppose legislation that places mandates, or otherwise modifies the governance structure of special districts, joint powers authorities, or other local government entities.  Support legislation that eliminates regulations between employees and employers that place undue fiscal harm on special districts.  Oppose legislation that mandates additional duties upon special districts to facilitate public meetings or transparency without cause or funding.  Oppose legislation that prevents water agencies from recovering sufficient revenues from connection and capacity fees and oppose legislation that restricts the ability of agencies to charge fees for services. OTHER  Monitor legislation that would change or expand current prevailing wage requirements.  Oppose legislation that creates additional water agencies within or inclusive of the YLWD service area outside of the LAFCO process, or without the support of residents and local public agencies. Page 44 of 132 2023 Legislative Platform Draft for Approval 1 2023 Legislative Platform Draft for Approval CONTENTS Purpose.........................................................................................................................................1 Process..........................................................................................................................................1 Guiding Principles........................................................................................................................2 Promote Fiscal Stability............................................................................................................2 Preserve Local Control............................................................................................................2 Support Regulatory Streamlining............................................................................................2 LEGISLATIVE POSITIONS................................................................................................................2 Water Supply ............................................................................................................................2 Water Quality ...........................................................................................................................3 Water Use Efficiency................................................................................................................3 Environment..............................................................................................................................3 ENERGY .....................................................................................................................................3 Fiscal..........................................................................................................................................4 Local Control............................................................................................................................4 Other .........................................................................................................................................4 PURPOSE This document serves as the guide by which the Yorba Linda Water District (YLWD) actively engages with legislation through monitoring and communications activities. The 2022 YLWD Legislative Platform represents the District’s position on current or future issues that have the potential to impact the District or its interests. Below are the Guiding Principles and Policy Statements that will allow District staff and consultants to address 2022 legislative and regulatory issues promptly, without precluding the consideration of additional legislative and budget issues that may arise during the legislative session. Furthermore, the 2022 Legislative Platform is an important advocacy tool to present and deliver to elected officials who represent the YLWD service area locally or in Sacramento and Washington D.C. Sharing policy statements and positions on common legislative and regulatory issues with elected officials helps to shape policy decisions and positions YLWD to be a leader in the community for legislative and regulatory topics. Page 45 of 132 2023 Legislative Platform Draft for Approval 2 PROCESS Legislative positions will be recommended by YLWD staff and the District’s legislative advocates and submitted to the Board of Directors for their consideration In times where the legislative position of the District is unable to go to the Board of Directors in time before it is acted upon in the Legislature, as long as it is in line with the adopted legislative platform or the position taken is the same as any local agency partners or association agencies including but not limited to the Association of California Water Agencies (ACWA), Metropolitan Water District of Southern California (MWDSC), the Municipal Water District of Orange County (MWDOC), Orange County Water District (OCWD), Orange County Sanitation District (OCSD) the California Special District’s Association (CSDA), Community Water Systems Alliance (CWSA), or the California Association of Sanitation Agencies (CASA), the Board President can sign position letters on behalf of the District. If the Board President takes any legislative position due to this process, the legislative position will still be brought before the next Board of Directors meeting after the fact for discussion and direction. GUIDING PRINCIPLES Promote Fiscal Stability Seek funding opportunities for YLWD projects through grants, appropriations, or other means. Help YLWD access additional funding sources that will promote local reliability projects. Support measures that promote fiscal stability, predictability, financial independence, and preserve the District’s financial independence. Oppose measures that do not provide adequate funding to the District such as unfunded mandates or mandated costs with no guarantee of local reimbursement or offsetting benefits. Preserve Local Control Preserve and protect the District’s powers, duties, and prerogatives to operate within its service area and to determine the policy direction of local affairs, and oppose legislation that preempts local authority. Local agencies should preserve authority and accountability for revenues raised and services provided, including maintaining the ability to charge for services rendered or collect proportional impact, connection, or capacity fees. Support Regulatory Streamlining Support legislation that aims to streamline the regulatory environment by reducing regulation, reviewing regulation, or proposing regulations without affecting YLWD’s ability to operate safely and effectively. Oppose redundant regulatory processes or procedures that increase costs and add time to projects without justifiable benefits LEGISLATIVE POSITIONS Water Supply Support legislation that improves the supply and security of water to the Yorba Linda Water District service area, including stormwater capture and dry weather runoff. Support legislation that aims to increase water recycling, potable reuse, groundwater recharge, above ground storage, and surface water development. Page 46 of 132 2023 Legislative Platform Draft for Approval 3 Support legislation that encourages, funds, and maintains water recycling systems like the Ground Water Replenishment System that is managed by Orange County Water District. Support legislation and policies that provide for a solution to the problems in the Sacramento-San Joaquin River Delta that strikes a balance between agricultural demands and urban water needs. Support funding opportunities that provide local reliability, conveyance, and storage facilities for YLWD. Support declaring water desalination as extraordinary supply. Support desalination projects where the cost provides good value because of the resilience achieved. Reward districts that can prove their water use is recycled 100%. Water Quality Oppose legislation or policies that add redundant water testing, water quality, or environmental constraints to YLWD. Support legislation and funding that helps agencies meet state and federal water quality standards. Support legislation or regulations that aim to provide source-control measures at no cost to the District to prevent contaminants such as PFAS/PFOA from entering the water supply. Water Use Efficiency Oppose legislation that establishes water conservation and water use efficiency programs that unreasonably constrain YLWD or its customers. Oppose measures that fail to recognize augmented or alternative water supplies as an efficient use of water, or that fail to provide an adequate incentive for investments in such water, for potable or non-potable reuse. Oppose measures that require water efficiency standards or performance measures that are infeasible, not practical, or fail to achieve a positive cost-benefit ratio. Environment Support the goals of National Endangered Species Act Reform Coalition (NESARC). Support legislation that aims to clarify, streamline, and modernize the California Environmental Quality Act (CEQA). Support unique solutions and partnerships to collectively address and respond to natural disasters such as wildfires, including the continued use and expansion of Heli-Hydrants and emergency generators. Support policies and legislation that help fund the cleanup and removal of PFAS/PFOA contaminants from groundwater supplies. Support polluter-pays principles when assigning responsibility for the contamination and cleanup of environmentally destructive substances. Support legislation or regulations that discourage the flushing of wipes or other foreign substances through the sewer system, unless they meet certain performance standards. Oppose assigning superfund liability to water districts who treat water to remove PFAS. Energy Oppose legislation that increases the cost of electricity or other utilities for YLWD. Support legislation and policies that recognize hydroelectric power as a clean, renewable energy source and that its generation and use meet the greenhouse gas emission Page 47 of 132 2023 Legislative Platform Draft for Approval 4 reduction compliance requirements called for in the Global Warming Solutions Act of 2006 (AB 32) and subsequent related legislation. Monitor and support any legislative development that would provide relief for the use of diesel emergency power generators during State of Emergency events affecting the local electrical utility. Oppose the removal of natural gas as a viable energy source. Fiscal Support the development of bond or general fund programs for water supply development, including new surface and groundwater storage, water quality, recycled water, desalination, and water use efficiency related programs. Oppose legislation that places unnecessary or unfair regulations on pension liabilities. Support an equitable approach to the disbursement of State Revolving Fund revenues for a wide variety of projects. Oppose legislation and regulations that tax water as a public goods charge and redistributes the revenue throughout the State. Support state and federal revenue sources for water infrastructure projects that address water quality and reliability issues for disadvantaged and income-limited communities and residents that are not based upon regressive taxes. Support the protection of local revenue for use by special districts and the maintenance of reserve accounts of water agencies. Support efforts that seek to bring federal sources of funding to California for water infrastructure development and water management. Local Control Oppose legislation that seeks to diminish or alter the authority of the Board of Directors to manage the District’s water systems or operations, impose unreasonable unfunded state mandated programs, or increase fees or taxes on YLWD customers. Oppose legislation that would degrade YLWD’s authority in the area of public contracts, procurement, financial administration, public records, and human resources. Oppose legislation that would dissolve YLWD or transfer its duties to other agencies. Oppose legislation that would affect YLWD’s ability to protect and secure critical infrastructure from cyber or physical threats and damages. Oppose legislation that places mandates, or otherwise modifies the governance structure of special districts, joint powers authorities, or other local government entities. Support legislation that eliminates regulations between employees and employers that place undue fiscal harm on special districts. Oppose legislation that mandates additional duties upon special districts to facilitate public meetings or transparency without cause or funding. Oppose legislation that prevents water agencies from recovering sufficient revenues from connection and capacity fees and oppose legislation that restricts the ability of agencies to charge fees for services. Other Monitor legislation that would change or expand current prevailing wage requirements. Oppose legislation that creates additional water agencies within or inclusive of the YLWD service area outside of the LAFCO process, or without the support of residents and local public agencies. Page 48 of 132 ITEM NO. 8.4. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Alison Martin, Public Affairs Manager SUBJECT: Status of Communications Activities RECOMMENDATION: That the Board of Directors receive and file the monthly communications activities report. STRATEGIC PLAN INITIATIVES: G1 5D - Engage public to address issues with their representatives and maintain community partnerships with cities and organizations.; G4 1A - Provide timely communication, messaging, and strategies.; G4 1B - Establish annual tour of District facilities for the community to coincide with Water Awareness Month.; G4 2A - Update District website frequently.; G4 2B - Publish annual report and infographics; include water usage, cost, reconciliation, investments, projects, etc.; G4 2C - Design and include informative bill inserts.; G4 2D - Communicate emerging water quality and sewer issues/regulations. ATTACHMENTS: 1. Communications Lab Monthly Report Page 49 of 132 October Activity Report–Update TO:Alison Martin, Public Affairs Manager, PIO, Yorba Linda Water District FROM:Diego Terán, Sr. Account Manager, Communications LAB DATE: Oct. 25, 2022 RE: Current communications projects-including update from Oct. 22 Annual Open House Below are highlights of current Communications Lab projects for Yorba Linda Water District: Social Media a) Agency submitted KPI report on Sep. 20. Next step: Analyze numbers compared to previous periods. b) Agency fixed online invitation link for Annual Open House on Oct. 17. c) Agency wrote vote center copy for district facility, and scheduled posts after client approval. Special events–Open House a) Agency filmed event using drone and provided video to client, which included general footage of event, along with interviews to General Manager Toy, President Miller, and the public. Upon approval, video was posted on Facebook, Twitter and LinkedIn on Oct. 25. Next step: Agency to provide Recap Reel on Oct. 26 b) Agency submitted eight detailed event punch lists with updated Social Media content and agency staff before event. Next step: Evaluate event at next biweekly check in call. c) Agency designed and delivered boards with map of event for participants along with signage to identify stations. Additionally, agency redesigned paper map, ambassador books, water ambassador stickers, and station numbers. d) Agency delivered photo op signage for stations, as well as PVC signs identifying locations. e) Agency posted two digital ads to go on social media to promote event. Video ad used “15 promo video created by agency. f) Agency posted Instagram live stories on day of event, based on preapproved shot list. g) Agency provided social media copy for event, which was also approved and posted. h) Agency delivered five A-Frames (one included two foam cores of legal copy for photo and video content,) and six easels for various sign usage. After event, agency collected A-Frames and easels. i) Five agency staff contributed during event at info booth, water booth, AV and social media production. j) Agency recommended sage plants from local nursery for event, but price was prohibitive. Page 50 of 132 ITEM NO. 8.5. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Keri Hollon, Accounting Assistant II SUBJECT: Payments of Bills, Refunds, and Wire Transfers RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $1,851,711.12. BACKGROUND: Pursuant to Section 31302 of the California Water Code, staff is submitting a list of disbursements to the Board of Directors for approval. The items on this disbursement list include: a check of $67,933.55 to City of Anaheim for September 2022 electrical services at various locations; a check of $562,504.51 to Haaker Equipment Co. for a new vactor hydro-excavator and tools for new hydro- excavator; a check of $79,667.00 to Pascal & Ludwig Constructors, Inc. for J2009-22 #22 well 22 equipping; a check of $69,414.12 to Resource Computer Solutions for J22-30,31,32,33,34 service work and IT consulting. The balance of $382,677.68 are routine invoices. The Accounts Payable check register total is $1,162,196.86; Payroll No. 21 total is $344,283.43, and Payroll No. 22 total is $345,230.83; where disbursements for this agenda report total is $1,851,711.12. A summary of the disbursements is attached. ATTACHMENTS: 1. Cap Sheet for November 15, 2022 2. Check Register for November 15, 2022 3. Credit Card for November 15, 2022 Page 51 of 132 CHECK NUMBERS: 11/15/2022 Computer Checks 80912-81016 1,162,196.86$ 1,162,196.86$ 1,162,196.86$ PAYROLL NO. 21: Direct Deposits 215,168.33$ Payroll Taxes 56,558.01 EFT -- CalPERS 46,700.23 Third Party Checks 80900-80903 25,856.86 344,283.43$ PAYROLL NO. 22: Direct Deposits 211,695.81$ Payroll Taxes 56,538.97 EFT -- CalPERS 48,572.91 Third Party Checks 80904-80911 28,423.14 345,230.83$ 689,514.26$ 1,851,711.12$ Summary of Disbursements November 15, 2022 ------------------------------------------------------------------------------------------------------------------ TOTAL OF CHECKS & WIRES TOTAL OF PAYROLL ================================================================ MEETING OF NOVEMBER 15, 2022 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD ================================================================ DISBURSEMENT TOTAL Page 52 of 132 Check No.Date Vendor Name Amount Description 80912 11/15/2022 JOY MOORE 0.10 CUSTOMER REFUND 80913 11/15/2022 SCOTT KIRBY 0.06 CUSTOMER REFUND 80914 11/15/2022 Thomas Tonelli 0.69 CUSTOMER REFUND 80915 11/15/2022 KATHERINE BROWN 6.97 CUSTOMER REFUND 80916 11/15/2022 JON POLENTZ PROPERTY MANAGEMENT CO 449.79 CUSTOMER REFUND 80917 11/15/2022 JING JIANG 121.09 CUSTOMER REFUND 80918 11/15/2022 CHARLES WILSON 0.32 CUSTOMER REFUND 80919 11/15/2022 CAROL J BROOK 160.64 CUSTOMER REFUND 80920 11/15/2022 OPEN DOOR LABS INC 439.17 CUSTOMER REFUND 80921 11/15/2022 PINNACLE INTL PROPERTY SERVICES 88.92 CUSTOMER REFUND 80922 11/15/2022 DARLING ALVIDREZ 95.07 CUSTOMER REFUND 80923 11/15/2022 KARRIE BERRY 392.62 CUSTOMER REFUND 80924 11/15/2022 MAYANS DEVELOPMENT 638.40 CUSTOMER REFUND 80925 11/15/2022 KEFAN ZHU 41.41 CUSTOMER REFUND 80926 11/15/2022 INTEGRITY PLACE REALTY AND PROP MGMT 392.35 CUSTOMER REFUND 80927 11/15/2022 4 PALMS PROPERTIES LLC 129.12 CUSTOMER REFUND 80928 11/15/2022 STEPHANIE LI 34.59 CUSTOMER REFUND 80929 11/15/2022 RON HALE 86.77 CUSTOMER REFUND 80930 11/15/2022 HARVEST REALTY DEVELOPMENT 279.97 CUSTOMER REFUND 80931 11/15/2022 GCI CONSTRUCTION, INC. 2,060.00 CUSTOMER REFUND 80932 11/15/2022 FARWEST CORROSION CONTROL CO. 1,902.20 CUSTOMER REFUND 80933 11/15/2022 ACWA-Assn Of Ca Water Agencies 25,720.00 2023 ANNUAL AGENCY DUES 80934 11/15/2022 AIRGAS INC 193.75 WELDING SUPPLIES 80935 11/15/2022 Albert A. Webb Associates 3,476.75 J09-22 #22 WELL 22 PROFESSIONAL SERVICES SEPTEMBER 22 80936 11/15/2022 Alternative Hose Inc. 442.83 HOSE FOR HIGHLAND BOOSTER 80937 11/15/2022 Amazon Capital Services 23,121.59 J22-30,31,32,33,34 SECURITY MATERIALS & OFFICE SUPPLIES 80938 11/15/2022 Annie Alexander 313.39 OFFICE & MEETING SUPPLIES 80939 11/15/2022 Aqua-Metric Sales Co. 15,448.58 OPERATIONS WORK MATERIAL 80940 11/15/2022 Aramark 861.57 UNIFORM SERVICE 80941 11/15/2022 AT & T - Calnet3 1,706.45 ATT CALNET 80942 11/15/2022 A & Y Asphalt Contractors Inc. 4,621.50 CONCRETE REPAIRS 80943 11/15/2022 BASE HILL INC. 4,227.58 JANITORIAL SERVICES 80944 11/15/2022 B.L. Wallace Distributor, Inc. 3,369.34 METER LIDS 80945 11/15/2022 BrightView Tree Care Services Inc. 2,054.74 MONTHLY LANDSCAPE SERVICE 80946 11/15/2022 Caltrol Inc 1,596.36 SCADA SOFTWARE FOR WINDOWS 80947 11/15/2022 CalCard US Bank 31,641.17 CREDIT CARD TRANSACTIONS - SEPTEMBER 2022 80948 11/15/2022 CDW Government, Inc 2,420.58 INFORMACAST ANNUAL SUBSCRIPTION 80949 11/15/2022 CIPO CLOUD SOFTWARE INC 650.00 CLOUD MONTHLY SUBSCRIPTION 80950 11/15/2022 Citizen's Business Bank 4,193.00 J09-22 #22 PASCAL & LUDWIG ESCROW HOLDING 80951 11/15/2022 City Of Anaheim - Anaheim Public Utilities 67,933.55 ELECTRICAL CHARGES SEPTEMBER 2022 - VARIOUS LOCATIONS 80952 11/15/2022 Griswold Industries dba Cla-Val Co. 19,422.75 J22-41 WELL #7 CLA-VAL REPLACEMENT 80953 11/15/2022 Clinical Lab. Of San Bern. 1,560.00 WATER QUALITY LAB WORK 80954 11/15/2022 Communications Lab 10,000.00 PROFESSIONAL SERVICES AUGUST & SEPTEMBER 2022 80955 11/15/2022 CSDA 8,810.00 2023 MEMBERSHIP RENEWAL 80956 11/15/2022 Culligan of Santa Ana 9.00 EQUIPMENT PE SOFTENER 80957 11/15/2022 C. Wells Pipeline 10,113.75 OPERATIONS WORK MATERIAL 80958 11/15/2022 Danielle Logsdon 25.56 MILEAGE REIMBURSEMENT 80959 11/15/2022 Dell Financial Services LLC 369.92 DELL PRO SUPPORT & WINDOWS SERVER LICENSES 12/2022-11/2023 80960 11/15/2022 deRose Promos 39.15 ENGRAVED NAME BADGES 80961 11/15/2022 Dick's Lock & Safe Inc. 250.00 LAKEVIEW LOCK REPLACEMENT 80962 11/15/2022 Dion & Sons, Inc. 4,438.27 STATIONARY ENGINE OIL 80963 11/15/2022 Doringer Cold Saws, Inc. 184.50 COLD SAW COOLANT 80964 11/15/2022 Dunn-Edwards Corporation 82.79 PAINT SUPPLIES FOR FACILITIES 80965 11/15/2022 Eisel Enterprises, Inc. 4,122.52 VALVE BOXES 80966 11/15/2022 Elite Equipment Inc 241.63 FUEL PUMP & GENERATOR FOR UNIT #175 80967 11/15/2022 Factory Motor Parts 190.81 PARTS FOR UNIT #175 80968 11/15/2022 FedEx Office 35.20 SHIPPING EXPENSE 80969 11/15/2022 Golden Bell Products 8,721.00 MANHOLE COATING 80970 11/15/2022 Grainger 3,349.16 PART FOR UNIT #241 80971 11/15/2022 Haaker Equipment Co. 562,504.81 NEW VACTOR HYDRO-EXCAVATOR & TOOL FOR HYDRO-EXCAVATOR 80972 11/15/2022 Harrington Industrial 4,020.02 PARTS FOR AC & CL2 SYSTEM 80973 11/15/2022 Hedrick Fire Protection 550.00 FIRE ALARM INSPECTION 80974 11/15/2022 Infosend Inc. 12,150.09 BILLING & POSTAGE CUSTOMER BILL 80975 11/15/2022 Jackson's Auto Supply - Napa 1,088.52 J22-30 LITTLE CANYON MATERIAL & MECHANIC SHOP SUPPLIES For Checks Dated: 10/25/2022 thru 11/15/2022 Yorba Linda Water District Check Register Page 53 of 132 80976 11/15/2022 KB Design 4,100.53 SHIRTS FOR OPERATIONS STAFF 80977 11/15/2022 Kimball Midwest 89.45 MECHANIC SHOP SUPPLIES 80978 11/15/2022 Leighton Consulting, Inc. 6,860.17 J18-28 PROFESSIONAL SERVICES SEPTEMBER 2022 80979 11/15/2022 Liebert Cassidy Whitmore 511.50 PROFESSIONAL SERVICES SEPTEMBER 2022 80980 11/15/2022 LPR-Laser Printer Repair Co 115.00 ON SITE SERVICE REPAIRS 80981 11/15/2022 Mario S. Banuelos 1,232.50 J22-41 WELL #7 WELDING WORK 80982 11/15/2022 Mc Fadden-Dale Hardware 667.51 PRODUCTION REPAIR PARTS & MECHANIC SHOP SUPPLIES 80983 11/15/2022 Measurement Control Systems, Inc 134.25 PRESSURE GAUGES 80984 11/15/2022 Michael K. Nunley & Associates 22,054.63 J21-32 PROFESSIONAL SERVICES SEPTEMBER 22 80985 11/15/2022 Municipal Water District 12,872.00 WATER LOSS CONTROL SHARED SERVICES FY22-23 80986 11/15/2022 Murcal, Inc. 368.66 STATIONARY ENGINE PARTS 80987 11/15/2022 Nickey Kard Lock Inc 8,405.04 FUEL 10/1/22-10/15/22 80988 11/15/2022 North American Recycling and Crushing, LLC 500.00 DISPOSAL OF OLD ROAD MATERIAL 80989 11/15/2022 Orange County - Tax Collector 539.76 J20-59/S VALVE BOX & MANHOLE ADJUSTMENTS 80990 11/15/2022 Orange County Water District 5,129.73 WARNER BASIN LEASE YEAR 11 80991 11/15/2022 County of Orange 137.33 J20-59/S VALVE BOX & MANHOLE ADJUSTMENTS 80992 11/15/2022 Orkin Pest Control 208.00 PEST CONTROL 80993 11/15/2022 Pascal & Ludwig Constructors, Inc 79,667.00 J09-22 #22 WELL 22 EQUIPPING 80994 11/15/2022 Plumbers Depot Inc. 1,342.65 PLUMBING EQUIPMENT 80995 11/15/2022 Linde Gas & Equipment Inc. 193.44 WELDING SUPPLIES 80996 11/15/2022 Psomas & Associates 32,094.64 J20-16S, J21-36 PROFESSIONAL SERVICES JUNE & SEPTEMBER 2022 80997 11/15/2022 Quinn Company 7,912.73 ENGINE PARTS FOR WELL #1 80998 11/15/2022 Red Wing Shoes 213.33 SAFETY BOOTS FOR STAFF 80999 11/15/2022 Resource Computer Solutions 69,414.12 J22-30,31,32,33,34 SERVICE WORK & IT CONSULTING 10/15/22-11/14/22 81000 11/15/2022 Security Solutions 8,825.00 J21-39 BRYANT RANCH SECURITY WORK 81001 11/15/2022 Shred Confidential, Inc. 79.88 MONTHLY SHRED SERVICE 81002 11/15/2022 Southern California Fleet Services, Inc 5,448.16 REPAIR WORK FOR UNIT #197 81003 11/15/2022 Staples Business Advantage 432.36 OFFICE SUPPLIES 81004 11/15/2022 Sunrise Medical Group 1,100.00 FLU SHOTS & EMPLOYEE PHYSICALS 81005 11/15/2022 Titus Industrial Group 2,932.79 MANHOLE LID FOR PRODUCTION 81006 11/15/2022 Titan Water Technology Inc 295.00 QUARTERLY AC SERVICE 81007 11/15/2022 Townsend Public Affairs, Inc. 12,500.00 CONSULTING SERVICES - JULY, AUGUST & SEPTEMBER 2022 81008 11/15/2022 TruGrit Traction Inc 2,135.96 SEWER CAMERA PARTS 81009 11/15/2022 United Industries 1,520.08 OPERATIONS PPE 81010 11/15/2022 United Water Works, Inc. 9,461.10 OPERATIONS WORK MATERIAL 81011 11/15/2022 Vision Service Plan 2,545.06 VISION SERVICE PLAN - NOVEMBER 2022 81012 11/15/2022 Walters Wholesale Electric Co. 199.77 FACILITIES ELECTRICAL SUPPLIES 81013 11/15/2022 West Coast Batteries Inc 632.64 BATTERIES FOR VARIOUS UNITS 81014 11/15/2022 YO Fire 4,575.98 OPERATIONS WORK MATERIAL 81015 11/15/2022 Konica Minolta Business 438.68 COPY CHARGES FOR C258 & C558 81016 11/15/2022 Safety-Kleen Systems Inc 715.00 HAZARDOUS MATERIAL DISPOSAL 1,162,193.86 10/13/2022 PAYROLL - EMPLOYEE DIRECT DEPOSIT 215,168.33 10/13/2022 PAYROLL - PAYROLL TAX PAYMENT 56,558.01 10/13/2022 PAYROLL - CALPERS & TASC 46,700.23 80900 10/13/2022 California State Disbursement Unit 751.84 80901 10/13/2022 Colonial Life & Accident 86.73 80902 10/13/2022 Lincoln Financial Group 3,623.91 80903 10/13/2022 Nationwide Retirement Solutions 21,394.38 *ask maggie 344,283.43 10/27/2022 PAYROLL - EMPLOYEE DIRECT DEPOSIT 211,695.81 10/27/2022 PAYROLL - PAYROLL TAX PAYMENT 56,538.97 10/27/2022 PAYROLL - CALPERS & TASC 48,572.91 80904 10/27/2022 Allstate 932.12 80905 10/27/2022 Ameritas 1,395.15 80906 10/27/2022 California State Disbursement Unit 751.84 80907 10/27/2022 Colonial Life & Accident 86.73 80908 10/27/2022 Lincoln Financial Group 3,623.91 80909 10/27/2022 Midland Life Insurance 200.00 80910 10/27/2022 Nationwide Retirement Solutions 21,394.38 80911 10/27/2022 Reliance Plan Insurance 39.01 345,230.83 Payroll Checks #21 Payroll Checks #22 Page 54 of 132 Vendor Name Amount Description ZOOM 84.97 VIRTUAL MEETING SUBSCRIPTION Government Finance Officers 129.00 GAAFR - NEW EDITION Government Finance Officers 135.00 ANNUAL GAAP WEBINAR Chefs Toys 404.56 SHELVING FOR BUILDING 2 Fish In A Bottle 84.23 LUNCH MEETING - 2 ATTEND KB Design 19.93 WORK COAT EMBROIDERY Home Depot 17.20 SOD FOR LANDSCAPE REPAIR Home Depot 17.20 SOD FOR LANDSCAPE REPAIR BOARD FOR PROFESSIONAL ENNEERS & LAND SURVEYORS180.00 PE LICENSE RENEWAL - AFSHAR, R City Of Anaheim - Anaheim Public Utilities 200.00 J21-02 BNSF WATERLINE PERMIT DocuSign, Inc.2,028.60 E-SIGNATURE SOFTWARE SUBSCRIPTION Verizon Wireless 5,144.98 VERIZON 7/21-8/20 American Society of Civil Engineers (ASCE)145.00 ASCE AWARDS REGISTRATION - WESTON, R & LOGSDON, D Byblos Mediterranean Grill 63.76 LUNCH MEETING - 2 ATTEND Home Depot 114.70 TOOLS FOR FACILITIES ACWA/JPIA 35.00 HR GROUP MEETING REGISTRATION - KNIGHT, G ACWA/JPIA 35.00 HR GROUP MEETING REGISTRATION - LIM, V Donut Star 29.00 SAFETY MEETING SUPPLIES Orvac Electronics 40.92 SCADA REPAIR MATERIAL Costco 44.58 BREAKROOM SUPPLIES KENNYS DONUTS 137.40 SAFETY MEETING SUPPLIES Alternative Hose Inc.1,232.62 HIGH PRESSURE HOSE FOR UNIT #215 Home Depot 92.81 J21-39 BRYANT RANCH MATERIALS Schorr Metals, Inc.2.38 J21-39 BRYANT RANCH GATE LATCH Home Depot 586.20 CLEANING SUPPLIES & OPERATIONS TOOLS The Art of Carving Ice, Inc.201.62 BAGGED ICE FOR EVENT THE SACRAMENTO BEE 263.99 DIGITAL MEDIA SUBSCRIPTION - KNIGHT, G Time Warner Cable 659.58 INTERNET & DISTRICT TV SERVICES Amazon Capital Services 16.29 OFFICE SUPPLIES SMARTSHEET 19.00 MONTHLY SOFTWARE SUBSCRIPTION Home Depot 86.14 FACILITIES ELECTRICAL SUPPLIES Home Depot 21.52 TOOL FOR UNIT #235 Amazon Capital Services 40.23 OFFICE SUPPLIES ONLINE Information Services, Inc.562.72 ONLINE UTILITY EXCHANGE & COLLECTION ONLINE Information Services, Inc.17.82 ONLINE UTILITY EXCHANGE & COLLECTION Republic Services #676 919.37 DISPOSAL SERVICE ACWA/JPIA 35.00 HR GROUP MEETING REGISTRATION - SEGURA, J Liebert Cassidy Whitmore 1,425.00 LABOR RELATIONS CERTIFICATION PROGRAM - SEGURA, J Baran Restaurant 62.88 LUNCH MEETING - 2 ATTEND Amazon Capital Services 237.06 OFFICE SUPPLIES Adobe 54.99 SOFTWARE LICENSE Government Finance Officers 345.00 BAP SUBMISSION FEE CRS, Inc 713.89 LADDER SAFETY POST Americoat Powder Coating 265.20 J21-39 SANDBLAST & POWDER COAT GATE FRAME Sams Club 48.91 SUPPLIES FOR RECEPTION Stefano's Golden Baked Hams 37.77 LUNCH MEETING - 2 ATTEND Mimis Cafe 55.03 BREAKFAST MEETING - 2 ATTEND Kleen-Rite 688.04 PUMPS FOR CAR WASH Buffer, Inc 24.00 SOCIAL MEDIA MANAGEMENT TOOL Bitwarden Inc.180.00 PASSWORD PROGRAM Big Top Rentals 186.55 TABLE RENTAL FOR RECEPTION Sams Club 50.89 SUPPLIES FOR RECEPTION Chipotle Mexican Grill 54.97 NEW HIRE LUNCH - 3 ATTEND Home Depot 670.33 CONCRETE PALLETS Minuteman Press 59.26 BUSINESS CARDS FOR STAFF Orange County Water Assn.360.00 2022 OPERATOR EXPO REGISTRATION - 8 ATTEND Calif Special Districts Assn 175.00 VIRTUAL WORKSHOP REGISTRATION - TOY, M Cosmic Dave's Subs 15.58 TRAINING CLASS MEAL - LUGO, D Sticker Mule, LLC 135.75 EMPLOYEE SERVICE RECOGNITION Village Nurseries 117.46 SOD FOR LANDSCAPE REPAIR Home Depot 19.56 FACILITIES ELECTRICAL SUPPLIES Kabuto Sushi & Grill 19.51 TRAINING CLASS MEAL - LUGO, D Doubletree Resort 227.90 TRAINING LODGING - LUGO, D Fleet Services, Inc 189.10 LIGHTS FOR UNIT #210 Home Depot 258.69 BUILDING REPAIR PARTS 15-Nov-22 Cal Card Credit Card U S Bank Page 55 of 132 Costco 413.06 BREAKROOM SUPPLIES Anaheim Convention Center 20.00 AUTO SHOW EVENT PARKING - OJEDA, F OC Auto Show 15.00 AUTO SHOW EVENT - OJEDA, F Home Depot 90.94 TOOLS FOR SEWER TRUCKS Staples Business Advantage 41.66 OFFICE SUPPLIES Time Warner Cable 226.48 INTERNET & DISTRICT TV SERVICES Home Depot 385.44 BOOM LIFT RENTAL FEE Costco 454.89 WATER PROFESSIONALS WEEK SUPPLIES That's Great News 298.82 PLAQUE FOR PFAS PLANT Staples Business Advantage 160.98 OFFICE SUPPLIES Farmer Boys 64.23 FOOD FOR STAFF WORKING OT GSE 76 24.59 DRINKS FOR STAFF WORKING OT John Wayne Airport 40.00 PARKING - MWDOC INSPECTION TOUR - TOY, M Government Tax Seminar, LLC 1,338.75 GOVERNMENT TAX SEMINAR - 3 ATTEND Cal Society-Municipal Finance Officers 110.00 MEMBERSHIP DUES - PHUONG, S IN-N-OUT RESTAURANTS 30.00 HEALTH & BENEFITS FAIR SUPPLIES PORKY'S PIZZA 336.51 LUNCH FOR WATER PROFESSIONALS WEEK Fleet Services, Inc 40.15 OIL FILL CAP FOR UNIT #230 Home Depot 58.52 FACILITIES PLUMBING SUPPLIES Anixter Inc.142.87 RADIO TRANSMITTERS Cal Society-Municipal Finance Officers 470.00 MEMBERSHIP DUES - PHUONG, S Southwest Airlines 49.22 CONFERENCE TRAVEL EXPENSE - PHUONG, S Home Depot 137.92 EPOXY FOR CONCRETE REPAIR Alliant Insurance Services, Inc.290.00 EVENT INSURANCE - HEALTH & BENEFITS FAIR Stater Bros. Markets 165.34 WATER PROFESSIONALS WEEK SUPPLIES North American Recycling and Crushing, LLC 70.04 WATER PROFESSIONALS WEEK SUPPLIES Avenue of the Arts Wyndham Hotel 8.00 PARKING - JPIA LEADERSHIP COURSE - MARTIN, A Corner Bakery 1,567.82 LUNCH FOR HEALTH & BENEFITS FAIR Smart & Final 35.75 WATER PROFESSIONALS WEEK SUPPLIES Smart & Final 198.53 WATER PROFESSIONALS WEEK SUPPLIES El Farolito 154.15 WATER PROFESSIONALS WEEK SUPPLIES Francisco Meat Co 310.91 WATER PROFESSIONALS WEEK SUPPLIES Stater Bros. Markets 12.75 WATER PROFESSIONALS WEEK SUPPLIES Stater Bros. Markets 41.25 WATER PROFESSIONALS WEEK SUPPLIES One Source Distributors, LLC 478.52 SCADA REPAIR MATERIAL Avenue of the Arts Wyndham Hotel 8.00 PARKING - JPIA LEADERSHIP COURSE - WESTON, R Time Warner Cable 232.11 INTERNET & DISTRICT TV SERVICES Southwest Airlines 200.96 CONFERENCE TRAVEL EXPENSE - PHUONG, S Sake Sushi and Grill 96.28 FINANCE LUNCH MEETING - 4 ATTEND Automationdirect.com, Inc.72.86 SCADA MOUNTING BRACKETS Avenue of the Arts Wyndham Hotel 8.00 PARKING - JPIA LEADERSHIP COURSE - WESTON, R Time Warner Cable 2,038.04 INTERNET & DISTRICT TV SERVICES Home Depot 122.00 BUILDING REPAIR PARTS APPLE 0.99 OFFICE EXPENSE Schorr Metals, Inc.52.20 METAL TUBING FOR UNIT #242 31,641.17 Page 56 of 132 ITEM NO. 8.6. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Unaudited Financial Statements for First Quarter of Fiscal Year 2022-23 RECOMMENDATION: That the Board of Directors receive and file the Unaudited Financial Statements for the First Quarter of Fiscal Year 2022-23. BACKGROUND: For the period, ending September 30, 2022, staff is presenting “unaudited” statements in the CAFR format. We have included a Statement of Net Position, a Debt Service Ratio Calculation, a ProForma Use of Funds Statement, Consolidated Budget to Actual Statement, as well as the individual Water and Sewer Budget to Actual Statements. As reported in the Balance Sheet of the Statement of Net Position, the District’s Net Position reflects a positive result when compared to that of the same reporting period of the prior fiscal year by approximately $2.3 million. This is prominently due to a decrease in operating costs resulting from the District returning to its traditional operating plan of utilizing groundwater as the primary resource to meet the demand on the water system. Cumulative Volumetric Water Revenue, as reported through the Period Ending September 30, 2022, reflects an average decrease in customer consumption of approximately 1% as compared to prior year for the same reporting period. Total Variable Water Costs results reflect a 31% decrease when compared to prior year for the same reporting period. With the issuance of the Refunding Revenue Bonds, Series 2017A and Series 2022A the District covenanted “…to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 125% of the Debit Service for such Fiscal Year.” To confirm the covenant is upheld, staff calculates the Debt Service Ratio quarterly and is received and filed by the Board of Directors. Accordingly, the “unaudited” Debt Service Ratio Calculation of the Water Enterprise for the Period Ending September 30, 2022, being reported at 243%. ATTACHMENTS: 1. Unaudited Financial Statements for 1st Qtr Page 57 of 132 ASSETS September 2022 September 2021 CURRENT ASSETS: Cash and cash equivalents 69,356,999$ 34,325,667$ Investment 1,086,365 3,423,643 Accounts receivable - water and sewer services 5,932,638 5,470,373 Accrued interest receivable 11,821 10,541 Prepaid expenses & other deposits 1,262,768 1,359,591 Inventory 457,241 449,358 TOTAL CURRENT ASSETS 78,107,832 45,039,173 NONCURRENT ASSETS: Bond issuance costs - 294,858 Righ-To-Use Lease Asset 195,746 - Deferred Pension Plan 2,458,386 2,142,350 Deferred OPEB Plan 520,402 594,377 Capital assets: Non-depreciable 9,661,415 4,019,508 Depreciable, net of accumulated depreciation 176,955,890 179,150,962 TOTAL NONCURRENT ASSETS 189,791,839 186,202,055 TOTAL ASSETS 267,899,671 231,241,229 LIABILITIES CURRENT LIABILITIES: Accounts payable 2,963,307 5,639,771 Accrued expenses 2,698,059 9,164 Accrued interest payable 256,567 Refunding Revenue Bond(s) - current portion 480,000 1,350,000 Compensated absences 485,106 502,394 Net OPEB Obligation 5,257 4,488 Customer and construction deposits 2,537,015 1,150,663 Deferred revenue 15,776 73,378 TOTAL CURRENT LIABILITIES 9,441,087 8,729,858 LONG-TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue 11,504,034 11,999,079 Compensated absences 1,455,318 1,507,183 Net Pension Liability 5,595,057 10,323,992 Net OPEB Liability 512,845 1,203,767 Deferred Pension Plan 5,355,890 80,778 Deferred OPEB Plan 749,701 304,828 Deferred Inflow - Gain on Bond 310,943 86,612 Deferred Inflow - Lease & Lease Liability 306,648 Refunding Revenue Bond(s) 62,322,874 33,245,133 Line of Credit 5,743,751 1,443,751 TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) 93,857,061 60,195,123 TOTAL LIABILITIES 103,298,148 68,924,981 NET ASSETS: 164,601,523$ 162,316,248$ YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS September 30, 2022 (With September 30, 2021 Actuals for comparison only) Page 58 of 132 September 2022 September 2021 OPERATING REVENUES: Water sales 10,356,243$ 10,466,486$ Sewer revenues 768,304 713,393 Other operating revenues 430,293 272,574 TOTAL OPERATING REVENUES 11,554,840 11,452,453 OPERATING EXPENSES Variable water costs 4,908,630 7,092,056 Personnel services 2,815,660 2,609,952 Supplies and services 1,867,580 1,183,899 Depreciation and amortization - 2,192,412 TOTAL OPERATING EXPENSES 9,591,870 13,078,319 OPERATING INCOME/(LOSS) 1,962,970 (1,625,866) NONOPERATING REVENUES (EXPENSES): Property taxes 37,640 38,912 Investment income 42,429 12,327 Interest expense (502,012) (319,791) Other nonoperating revenues 580,898 140,703 Other nonoperating expenses (303,542) (24,588) TOTAL NONOPERATING REVENUES/EXPENSES (144,587) (152,437) NET INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS, SPECIAL/EXTRAORDINARY ITEM(S) 1,818,383 (1,778,303) CAPITAL CONTRIBUTIONS - - CHANGES IN NET ASSETS 1,818,383 (1,778,303) NET ASSETS - BEGINNING OF YEAR 162,783,140 164,094,551 NET ASSETS - FOR PERIOD END SEPTEMBER 30, 2022 164,601,523$ 162,316,248$ YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS September 30, 2022 (With September 30, 2021 Actuals for comparison only) Page 59 of 132 YTD Debt Prior YTD PY Debt Actual Service Actual Service FY22 Calculation FY21 Calculation Revenue (Operating): Water Revenue (Residential) 4,942,976$ 4,942,976$ 4,937,649$ 4,937,649$ Water Revenue (Commercial & Fire Det.) 487,757 487,757 485,121 485,121 Water Revenue (Landscape/Irrigation) 1,341,468 1,341,468 1,375,930 1,375,930 Water Revenue (Service Charge) 3,579,896 3,579,896 3,223,172 3,223,172 Water Revenue (PFAS Impact Fee) - - 444,614 444,614 Water Revenue (Capital Finance Charge) 4,146 4,146 Other Operating Revenue 389,734 389,734 231,532 231,532 Total Operating Revenue:10,745,977 10,745,977 10,698,018 10,698,018 Revenue (Non-Operating): Interest 20,507 20,507 4,792 4,792 Property Tax 37,640 37,640 38,912 38,912 Other Non-Operating Revenue 520,250 520,250 125,903 125,903 Total Non-Operating Revenue:578,397 578,397 169,607 169,607 Total Revenue 11,324,374 11,324,374 10,867,625 10,867,625 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 4,908,628 4,908,628 7,092,056 7,092,056 Salary Related Expenses 2,383,302 2,383,302 2,239,269 2,239,269 Supplies & Services 1,619,206 1,619,206 1,011,907 1,011,907 Depreciation 1,596,945 - 1,820,709 - Total Operating Expenses 10,508,081 8,911,136 12,163,941 10,343,232 Expenses (Non-Operating): Interest on Long Term Debt 502,012 - 319,791 - Other Expense 268,130 268,130 24,588 24,588 Total Non-Operating Expenses:770,142 268,130 344,379 24,588 Total Expenses 11,278,223 9,179,266 12,508,320 10,367,820 Net Position Before Capital Contributions/Special Items 46,151 2,145,108 (1,640,695) 499,805 Special Item - Conservation Credit - - - - Transfers (To)/From - - - - Capital Contributions (Non-Cash Transaction - - - - - GASB 34 Compliant) Net Position 46,151$ 2,145,108$ (1,640,695)$ 499,805$      DEBT SERVICE RATIO CALCULATION:                                     Net Revenues 2,145,108$        499,805$                                             Debt Service 883,297$            682,230$                                             %243% 73% Yorba Linda Water District Unaudited Water Enterprise Debt Service Ratio Calculation For Period Ending September 30, 2022 (With September 30, 2021 for comparison purposes) Page 60 of 132 Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Period Ending September 30, 2022 Annual YTD Sept YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Sept Actual Actual (thru vs vs FY23 FY23 FY23 FY23 YTD Budget FY22 September 2021) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) $16,933,387 $4,233,347 $2,008,278 4,942,976$ 709,629$ $1,817,270 $4,937,649 5,327 0.11% Water Revenue (Commercial & Fire Det.) 1,737,255 $434,314 195,041 487,757 53,443 178,083 485,121 2,636 0.54% Water Revenue (Landscape/Irrigation) 4,046,832 $1,011,708 546,221 1,341,468 329,760 511,999 1,375,930 (34,462) -2.50% Water Revenue (Service Charge) 14,720,797 $3,680,199 1,228,905 3,579,896 (100,303) 1,126,445 3,223,172 356,724 11.07% Water Revenue (PFAS Impact Fee) - - - - - 148,366 444,614 (444,614) 100.00% Property Taxes - CFC Charges 3,103,900 - 2,600 4,146 4,146 - - 4,146 100.00% Sewer Charge Revenue 3,115,771 $778,943 268,018 767,924 (11,019) 262,543 710,278 57,646 8.12% Locke Ranch Assessments 363,158 - 253 381 381 2,719 3,115 (2,734) Other Operating Revenue 1,287,829 321,957 140,021 430,293 108,336 73,881 272,574 157,719 57.86% Total Operating Revenue: 45,308,929 10,460,468 4,389,337 11,554,841 1,094,373 4,121,306 11,452,453 102,388 0.89% Revenue (Non-Operating): Interest 106,925 26,731 28,309 42,428 15,697 4,393 12,328 30,100 244.16% Property Tax 2,095,000 - 33,269 37,639 37,639 35,545 38,912 (1,273) Other Non-Operating Revenue 692,942 173,236 (27,720) 580,898 407,663 2,551 140,703 440,195 312.85% Total Non-Operating Revenue: 2,894,867 199,967 33,858 660,965 460,999 42,489 191,943 469,022 244.35% Total Revenue 48,203,796 10,660,435 4,423,196 12,215,806 1,555,372 4,163,795 11,644,396 571,410 4.91% Expenses (Operating):11,353 Variable Water Costs (G.W., Import & Powe 17,686,074 4,421,519 1,586,478 4,908,629 487,111 2,240,006 7,092,056 (2,183,427) -30.79% Salary Related Expenses 13,231,809 2,035,663 1,311,408 2,815,659 779,996 1,300,055 2,609,952 205,707 7.88% Supplies & Services 9,258,295 2,303,157 760,149 1,867,578 (435,579) 351,338 1,183,900 683,678 57.75% Total Operating Expenses 40,176,178 8,760,338 3,658,035 9,591,866 831,528 3,891,399 10,885,908 (1,294,042) -11.89% Expenses (Non-Operating): Interest on Long Term Debt 2,436,750 609,188 196,469 502,012 (107,176) 106,508 319,791 182,222 56.98% Other Expense 18,135 4,534 (11,448) 303,539 299,005 4,597 24,588 278,951 1134.50% Total Non-Operating Expenses: 2,454,885 613,721 185,021 805,551 191,830 111,105 344,379 461,173 133.91% Total Expenses 42,631,063 9,374,059 3,843,056 10,397,418 1,023,358 4,002,504 11,230,287 (832,870) -7.42% Net Position Before Capital Contributions 5,572,733 1,286,375 580,140 1,818,389 532,014 161,291 414,110 1,404,279 339.11% Capital Contributions (Non-Cash - - - - - - - Transaction GASB 34 Compliant) Net Position Before Depreciation 5,572,733 1,286,375 580,140 1,818,389 532,014 161,291 414,110 1,404,279 339.11% Depreciation & Amortization 9,500,000 2,375,000 657,696 1,973,089 (401,911) 730,804 2,192,412 (219,323) -10.00% Total Net Position ($3,927,267) ($1,088,625) (77,556) (154,701) $933,925 ($569,513) ($1,778,303) $1,623,602 -91.30% (With September 30, 2021 for comparison purposes) Page 61 of 132 Annual YTD Sept YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Sept Actual (thru vs vs FY23 FY23 FY23 FY23 YTD Budget FY22 September 2021) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 16,933,387$ $4,233,347 2,008,278$ 4,942,976$ 709,629$ 1,817,270$ 4,937,649$ 5,327$ 0.11% Water Revenue (Commercial & Fire Det.) 1,737,255 434,314 195,041 487,757 53,443 178,083 485,121 2,636 0.54% Water Revenue (Landscape/Irrigation) 4,046,832 1,011,708 546,221 1,341,468 329,760 511,999 1,375,930 (34,462) -2.50% Water Revenue (Service Charge) 14,720,797 3,680,199 1,228,905 3,579,896 (100,303) 1,126,445 3,223,172 356,724 11.07% Water Revenue (PFAS Impact Fee) - - - - - 148,366 444,614 (444,614) 100.00% Water Revenue (CFC) 3,103,900 - 2,600 4,146 4,146 - - 4,146 Other Operating Revenue 1,171,574 292,894 132,493 389,734 96,841 72,710 231,532 158,202 68.33% Total Operating Revenue: 41,713,745 $9,652,461 4,113,538 10,745,977 1,093,516 3,854,873 10,698,018 47,959 0.45% Revenue (Non-Operating): Interest 70,200 17,550 23,075 20,507 2,957 1,969 4,792 15,715 327.94% Property Tax 2,095,000 - 33,269 37,640 37,640 35,545 38,912 (1,272) Other Non-Operating Revenue 659,672 164,918 (21,604) 520,250 355,332 9,356 125,903 394,347 313.21% Total Non-Operating Revenue: 2,824,872 182,468 34,740 578,397 395,929 46,870 169,607 408,790 241.02% Total Revenue 44,538,617 9,834,929 4,148,279 11,324,374 1,489,444 3,901,743 10,867,625 456,749 4.20% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 17,686,074 4,421,519 1,586,478 4,908,628 487,110 2,240,006 7,092,056 (2,183,428) -30.79% Salary Related Expenses 11,359,392 1,747,599 1,112,338 2,383,302 635,703 1,118,342 2,239,269 144,033 6.43% Supplies & Services: Communications 166,307 41,577 7,541 77,038 35,461 6,725 30,971 46,067 148.74% Contractual Services 541,358 135,340 78,002 166,827 31,488 32,953 110,521 56,306 50.95% Data Processing 361,462 90,366 41,671 89,499 (867) 19,502 33,350 56,149 168.36% Dues & Memberships 82,932 20,733 2,602 10,969 (9,764) 2,364 19,199 (8,230) -42.87% Fees & Permits 416,062 104,016 28,832 67,083 (36,933) 29,284 74,749 (7,666) -10.26% Board Election 116,450 - - - - - - - 0.00% Insurance 369,402 92,351 22,600 68,175 (24,176) 19,434 63,975 4,200 6.57% Materials 2,313,020 578,255 84,202 291,638 (286,617) 48,912 168,626 123,012 72.95% District Activities, Emp Recognition 38,677 9,669 3,042 7,356 (2,313) 1,622 4,176 3,180 76.15% Maintenance 1,122,055 280,514 228,205 313,756 33,242 24,321 159,405 154,351 96.83% Non-Capital Equipment 151,105 37,776 11,671 48,003 10,227 9,956 24,715 23,288 94.23% Office Expense 35,956 8,989 4,085 8,761 (228) 3,282 6,958 1,803 25.91% Professional Services 1,560,430 390,108 76,540 206,804 (183,304) 66,691 213,703 (6,899) -3.23% Training 69,748 17,437 462 10,500 (6,937) 350 2,167 8,333 384.54% Travel & Conferences 85,199 21,300 4,458 6,168 (15,132) 2,205 2,047 4,121 0.00% Uncollectible Accounts 8,500 2,125 (37) 4,144 2,019 (12) 873 3,271 374.68% Utilities 190,400 47,600 3,446 13,478 (34,122) 13,318 40,542 (27,064) -66.76% Vehicle Equipment 473,350 118,338 45,814 229,007 110,670 19,506 55,930 173,078 309.46% Supplies & Services Sub-Total 8,102,413 1,996,491 643,136 1,619,206 (377,285) 300,413 1,011,907 607,299 60.02% Total Operating Expenses 37,147,879 8,165,608 3,341,952 8,911,136 745,528 3,658,761 10,343,232 (1,432,096) -13.85% Expenses (Non-Operating): Interest on Long Term Debt 2,436,750 609,188 196,469 502,012 (107,176) 106,508 319,791 182,221 56.98% Other Expense 12,350 3,088 (11,448) 268,130 265,043 4,597 24,588 243,542 990.49% Total Non-Operating Expenses: 2,449,100 612,275 185,021 770,142 157,867 111,105 344,379 425,763 123.63% Total Expenses 39,596,979 8,777,883 3,526,973 9,681,278 903,395 3,769,866 10,687,611 (1,006,333) -9.42% Net Position Before Capital Contributions 4,941,638 1,057,046 621,306 1,643,096 586,049 131,877 180,014 1,463,081 812.76% Capital Contributions (Non-Cash Transaction - - - - - - - - - - GASB 34 Compliant) Net Position Before Depreciation 4,941,638 1,057,046 621,306 1,643,096 586,049 131,877 180,014 1,463,081 812.76% Depreciation & Amortization 8,005,000 2,001,250 532,315 1,596,945 (404,305) 606,903 1,820,709 (223,764) -12.29% Total Net Position (3,063,362)$ (944,204)$ 88,991$ 46,151 990,354$ (475,026)$ (1,640,695)$ 1,686,845$ -102.81% Yorba Linda Water District Water Fund For Period Ending September 30, 2022 (With September 30, 2021 for comparison purposes) Page 62 of 132 $9,181,734  $9,628,327  $10,047,564 $9,897,568  $10,867,625  $11,324,374  4.20% $7,593,409 $7,502,195  $8,067,575 $7,909,321 $7,909,321  $10,687,611  $9,681,278  ‐9.42%  $‐  $2,000,000  $4,000,000  $6,000,000  $8,000,000  $10,000,000  $12,000,000 Sept. 2016 Sept. 2017 Sept. 2018 Sept. 2019 Sept. 2020 Sept. 2021 Sept. 2022 Water  Revenues & Expenses ‐September (excludes Depreciation, Special Items, and Contributed Capital )      Total Revenue      Total Expenses Page 63 of 132 Annual YTD Sept YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Sept Actual (thru vs vs FY23 FY23 FY23 FY23 YTD Budget FY22 September 2021) PY Actual $ PY Actual % Revenue (Operating): Sewer Charge Revenue $3,115,771 $778,943 $268,018 767,924$ ($11,019) $262,543 $710,278 $57,646 8.12% Locke Ranch Assessments 363,158 - 253 381 381 2,719 3,115 (2,734) 0.00% Other Operating Revenue 116,255 29,064 7,529 40,559 11,495 1,171 41,042 (483) -1.18% Total Operating Revenue: 3,595,184 808,007 275,800 808,864 858 266,433 754,435 54,429 7.21% Revenue (Non-Operating): Interest 36,725 9,181 5,235 21,922 12,741 2,424 7,535 14,387 190.94% Other Non-Operating Revenue 33,270 8,318 (6,115) 60,649 52,332 (6,805) 14,800 45,849 309.79% Total Non-Operating Revenue: 69,995 17,499 (880) 82,571 65,072 (4,381) 22,335 60,236 269.69% Total Revenue 3,665,179 825,505 274,920 891,435$ 65,930 262,052 776,770 114,665 14.76% Expenses (Operating): Salary Related Expenses 1,872,417 288,064 199,071 432,358 144,294 181,713 370,683 61,675 16.64% Supplies & Services: Communications 26,693 6,673 1,076 6,209 (464) 1,187 7,285 (1,076) -14.77% Contractual Services 78,681 19,670 11,402 23,635 3,965 5,088 16,502 7,133 43.23% Data Processing 55,152 13,788 6,951 14,586 798 3,442 6,185 8,401 135.83% Dues & Memberships 14,590 3,648 459 1,936 (1,712) 417 3,388 (1,452) -42.86% Fees & Permits 51,928 12,982 3,299 11,211 (1,771) 3,292 9,584 1,627 16.98% Board Election 20,550 - - - - - - 0.00% Insurance 65,188 16,297 3,988 12,030 (4,267) 3,430 11,290 740 6.55% Materials 64,280 16,070 6,565 26,388 10,318 644 7,422 18,966 255.54% District Activities, Emp Recognition 6,823 1,706 537 1,298 (408) 280 731 567 77.56% Maintenance 405,845 101,461 55,393 71,100 (30,361) 11,615 28,953 42,147 0.00% Non-Capital Equipment 60,195 15,049 8,939 19,198 4,149 4,001 7,319 11,879 162.30% Office Expense 6,344 1,586 721 1,546 (40) 579 1,228 318 25.90% Professional Services 168,330 42,083 11,276 31,563 (10,520) 8,510 54,175 (22,612) -41.74% Training 13,402 3,351 157 6,864 3,514 31 508 6,356 1251.18% Travel & Conferences 17,581 4,395 787 1,089 (3,306) 243 (540) 1,629 0.00% Uncollectible Accounts 1,500 375 (12) 1,275 900 (2) 293 982 335.15% Utilities 33,600 8,400 608 2,378 (6,022) 2,350 7,155 (4,777) -66.76% Vehicle Equipment 65,200 16,300 4,870 16,069 (231) 5,821 10,514 5,555 52.83% Supplies & Services Sub-Total 1,155,882 283,833 117,016 248,375 (35,458) 50,928 171,992 76,383 44.41% Total Operating Expenses 3,028,299 571,897 316,087 680,733 108,836 232,641 542,675 138,058 25.44% Expenses (Non-Operating): Other Expense 5,785 1,446 - 35,409 33,963 - - 35,409 - Total Non-Operating Expenses: 5,785 1,446 - 35,409 33,963 - - 35,409 - Total Expenses 3,034,084 573,343 316,087 716,142 142,799 232,641 542,675 173,467 31.97% Net Position Before Capital Contributions 631,095 252,162 (41,167) 175,293 (76,869) 29,411 234,095 (58,802) -25.12% Capital Contributions (Non-Cash Transaction - - - - - - - - - - GASB 34 Compliant) Net Position Before Depreciation 631,095 252,162 (41,167) 175,293 (76,869) 29,411 234,095 (58,802) -25.12% Depreciation & Amortization 1,495,000 373,750 125,381 376,144 2,394 123,901 371,703 4,441 1.19% Total Net Position (863,905) (121,588) (166,548) (200,851) (79,263) (94,490) (137,608) (63,243) -45.96% Yorba Linda Water District Sewer Fund For Period Ending September 30, 2022 (With September 30, 2021 for comparison purposes) Page 64 of 132 $478,690  $542,272  $607,757  $670,161 $670,161  $776,770  $891,435  14.76% $319,263 $320,218  $262,673  $311,851 $310,287  $542,675  $716,142  31.97%  $‐  $100,000  $200,000  $300,000  $400,000  $500,000  $600,000  $700,000  $800,000  $900,000  $1,000,000 Sept. 2016 Sept. 2017 Sept. 2018 Sept. 2019 Sept. 2020 Sept. 2021 Sept. 2022 Sewer Revenues & Expenses  ‐September (excludes Depreciation, Special Items, and Contributed Capital)      Total Revenue      Total Expenses Page 65 of 132 ITEM NO. 8.7. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Cash and Investment Report for Period Ending September 30, 2022 RECOMMENDATION: That the Board of Directors receive and file the Cash and Investment Report for the Period Ending September 30, 2022. BACKGROUND: The Cash and Investment Portfolio Report presents the market value and percent yield for all District investments by institution. The Cash and Investment Summary Report includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The Fair Value Measurement Report categorizes investments by the fair value hierarchy established by generally accepted accounting principles. The Unrestricted Reserves and Days in Cash Graph presents Water Unrestricted Reserve Balances and Days in Cash at a particular point in time for the last seven years. The average portfolio yield for the month ending September 30, 2022 is 1.3%. The District's Total Cash and Investment balance as of September 30, 2022 resulted in an overall decrease from that of August 31, 2022 by approximately $1 million. This is predominantly due to the semi-annual Debt Service Principle and Interest payment of $1.6 million for the Revenue Bonds, Series 2017A issue. The District received its first reimbursement of approximately $2.7 million in eligible construction costs from proceeds of the recent Revenue Bonds, Series 2022A Issuance. ATTACHMENTS: 1. Cash and Investment Report for September 2022 Page 66 of 132 Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 2,312,051$ 2,312,051$ Wells Fargo Bank 2,312,051$ 2,312,051$ 3.63% Total 0.00% Depository Account 1,023,107$ 1,023,107 US Bank Depository Account (Cielo Vista) 0.01% 1,023,107$ 1,023,107$ 1.61% 0.01% Money Market Accounts: 21,558,427$ 21,558,427$ US Bank (Revenue Bonds) 0.90% 4,319,514$ 4,319,514 US Bank (Money Market) 2.71% 1,086,365$ 1,086,365 Public Agency Retirement Svcs. (PARS) 0.01% 26,964,306$ 26,964,306$ 42.35% Total 1.20% Pooled Investment Accounts: 33,375,056$ 33,375,056$ Local Agency Investment Fund 1.51% 33,375,056$ 33,375,056$ 52.42% 1.51% 63,674,520$ 63,674,520$ 100% Total Investments 1.30% 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. 9/30/22 Yorba Linda Water District Cash & Investment Portfolio Report September 30, 2022 ________________________________ Delia Lugo, Finance Manager Page 67 of 132 Below is a chart summarizing the yields as well as terms and maturities for the month of September 2022: Average # of Month Portfolio Days to of 2022 Yield Maturity September 1.30% 1 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 9/30/2021 9/30/2022 Monthly - September 4,393$ 28,309$ Year-to-Date 12,328$ 42,428$ Budget 2020/2021 2021/2022 Interest Budget, September YTD 77,000$ 26,731$ Interest Budget, Annual 308,000$ 106,925$ Interest earned on investments is recorded in the fund that owns the investment. The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: The table below displays the District's Cash and Investment balance of $68.8 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for the Bond payments and PARS for the pension/OPEB payments. The number of Days in Cash are 292 for the Un-Restricted Water Reserve balance and 916 for the Un-Restricted Sewer Reserve balances, as of September 30, 2022, which are subject to change with the final audited numbers. FY23 Reserve Cash and Requirements Investments August 2022 % Alloc September 2022 % Alloc "Target Available for Fund Description Balance 8/31/2022 Balance 9/30/2022 Levels" CY Obligations Water Operating Reserve 16,374,406$ 44.27% 14,350,014$ 38.07% 19,792,315$ (5,442,301)$ Water Emergency Reserve 7,348,506 19.87% 7,348,874 19.50% 7,450,000 (101,126) Water Capital Project Reserve 1,096,085 2.96% 3,720,522 9.87% 11,721,573 (8,001,051) MWD Contingency Reserve - 0.00% - 0.00% 1,000,000 (1,000,000) Rate Stabilization Reserve 4,258,417 11.51% 4,260,270 11.30% 4,251,271 8,999 Un-Restricted Water Reserve Balance 29,077,415 29,679,680$ 44,215,159 (14,535,479) Conservation Reserve 106,248$ 0.29% 106,248$ 0.28% 106,064 184 Employee Liability Reserve 310,440 0.84% 310,440 0.82% 309,040 1,400 Restricted Reserve Balance 416,687 416,687$ 415,104 1,583 Sewer Operating Reserve 3,275,579$ 8.86% 3,398,446$ 9.02% 3,028,299 370,147 Sewer Emergency Reserve 1,974,922 5.34% 1,977,575 5.25% 1,971,423 6,152 Sewer Capital Project Reserve 2,243,173 6.06% 2,222,181 5.90% 2,772,000 (549,819) Un-Restricted Sewer Reserve Balance 7,493,674 7,598,202$ 7,771,722 (173,520) Total Reserve Balances 36,987,776$ 100.00% 37,694,570$ 100.00% 52,401,985$ (14,707,415)$ Water Operating 1,292,233 2,537,651 Sewer Operating (26,269) (225,600) 1,265,964 2,312,051 Rev. Bond 2017A-Principal & Interest - - Rev. Bond 2022A - Acquisition & COI 24,265,408 21,558,427 Depository Account - Cielo Vista Development 1,023,103 1,023,107 Public Agency Retirement Svc. -PARS (Restricted)1,159,832 1,086,365 Total Cash and Investments 64,702,084$ 63,674,520$ Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) YLWD Cash & Investment Summary Report Page 68 of 132 Checking Account:2,312,051$ 3.63% Money Market Accounts:26,964,306$ 42.35% Certificates of Deposit:-$ 0.00% Pooled Investment Accounts:33,375,056$ 52.42% Depository Account 1,023,107$ 1.61% Total 63,674,520$ 100.00% Checking Account: 3.63% Money Market  Accounts: 42.35% Pooled Investment  Accounts: 52.42% Depository Account 1.61% INVESTMENT BY  CATEGORY BALANCES (AS OF 9‐30‐2022) Checking Account: Money Market Accounts: Certificates of Deposit: Pooled Investment Accounts: Depository Account Page 69 of 132 $25,435,084 $26,355,959 $28,156,312 $28,112,936 $29,060,435 $27,976,596 $29,679,680  360 360 354 337 320 281 292 60 110 160 210 260 310 360 410  $20,000  $5,020,000  $10,020,000  $15,020,000  $20,020,000  $25,020,000  $30,020,000  $35,020,000 Sept. 2016 Sept. 2017 Sept. 2018 Sept. 2019 Sept. 2020 Sept. 2021 Sept. 2022 Seven Year  Summary of Unrestricted Reserves  & Days in Cash (Water Fund)  Unrestricted Reserves (Water)Days in Cash (Water) Page 70 of 132 Date Description Amount 07/28/22 Beginning Balance $30,000,000 08/01/22 Paydown Refunding Revenue Bonds, Series 2012A ($5,723,505) Subtotal of Bond Proceeds for YLWD CIP $24,276,495 85% Target Spenddown of Bond Proceeds for CIP by 7/28/2025 $20,635,021 09/28/22 Requistion #2 ‐ Reimburse District for eligible construction costs ($2,725,606) Available Balance to Spenddown as of September 30, 2022 $17,909,415 Yorba Linda Water District Financing Authority Revenue Bonds, Series 2022A Activity Summary as of September 30, 2022 $17,909,415 81% $2,725,606 19% Revenue Bonds, Series 2022A Use of Funds to Meet 85%  Spenddown Target  by July 28, 2025   Available Balance as of Reporting Date Total Drawn to Date Page 71 of 132 Transaction  Date Transaction Description  Water Operating  Pension  Water Operating OPEB   Sewer Operating  Pension   Sewer Operating  OPEB  Account Total  Beginning Balance as of 7/1/21 754,305.26 289,298.98 78,124.99 17,436.92                  1,139,166.15                     7/31/2022 Management Fees (378.17) (237.47) (39.17) (14.31)                        1,138,497.03                     7/31/2022 Investment Gain/(Loss) 35,526.79 13,624.14 3,679.59 821.17                       1,192,148.72                     8/31/2022 Management Fees (374.03) (143.43) (38.74) (8.64)                           1,191,583.88                     8/31/2022 Investment Gain/(Loss) (21,025.08) (8,062.76) (2,177.61) (485.97)1,159,832.46                     9/30/2022 Management Fees (378.42) (145.09) (39.19) (8.74)1,159,261.02                     9/30/2022 Investment Gain/(Loss) (48,272.88) (18,508.28) (4,999.72) (1,115.55)1,086,364.59                     Account Balance by Account Type 719,403.47                    275,826.09                       74,510.15                         16,624.88                  1,086,364.59$                  PARS (Public Agency Retirement Services) Funding Summary for September 30, 2022 Page 72 of 132 ITEM NO. 8.8. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Finance Manager, Delia Lugo SUBJECT: Capital Improvement Plan (CIP) Progress Report for First Quarter of Fiscal Year 2022-23 RECOMMENDATION: That the Board of Directors receive and file the Capital Improvement Plan Progress Report for First Quarter of Fiscal Year 2022-23. BACKGROUND: The CIP Progress Report for the First Quarter of Fiscal Year 2022-23 provides progress on the District's Capital Improvement Plan water and sewer projects. The report includes first-quarter expenditures (July 1, 2022 - September 30, 2022), project status for FY 2022-23 CIP projects, and drawdown of the Revenue Bonds Series 2022A for each eligible water project as of September 30, 2022. The overall status of the Revenue Bonds Series 2022A is reported in the Cash and Investment Report for the Period Ending September 30, 2022. ATTACHMENTS: 1. CIP Progress Report for 1st Quarter of FY22-23 Page 73 of 132 1st Quarter FY 2022-2023 CIP Progress Report (July 1st through September 30, 2022) Capital Improvement Project Project Status Expenditure 1st Quarter FY 2022- 2023 Revenue Bonds, Series 2022A Draw Down Phase Water Projects PFAS Water Treatment Plant 1,312.90$ $ 1,504,228.47 Completed Hidden Hills Booster Pump Station Upgrades (YLWD Costs)16,475.06$ 49,063.57$ Construction Timber Ridge Booster Pump Station Pump Replacement 4,250.48$ 578,971.00$ Construction Well 22 Equipping 13,906.73$ 57,260.50$ Construction BNSF Railway Weir Canyon Waterline Xing 227,316.12$ 369,381.95$ Completed BNSF Veterans Way and S. Highland Waterline Xing 45,084.41$ 52,144.13$ Design Resiliency Improvements to District Facilities -$ 62,640.00$ Construction Site and Security Upgrades to District Facilities -$ 51,916.58$ Construction Lakeview Booster Pump Station Piping -$ Project re-prioritized to start FY 2023-2024 after completion of Water Master Plan Imperial Waterline Rehabilitation 208.78$ Design Mountain View Waterline Replacement -$ Project re-prioritized to start December 2022 in place of Lakeview BPS Subtotal Water Projects 308,554.48$ 2,725,606.20$ Sewer Projects Main Street Sewer Replacement 1,371.22$ n/a Acquisition of easements from City - Project completion may be delayed Subtotal Sewer Projects 1,371.22$ n/a Total Water and Sewer Projects 309,925.70$ n/a Project is on or ahead of schedule Project is significantly delayed Legend Project may be delayed Page 74 of 132 ITEM NO. 8.9. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Danielle Logsdon, Principal Engineer SUBJECT: Agreement with City of Placentia for Valve Box and Manhole Adjustment for Fiscal Year 2022-23 RECOMMENDATION: That the Board of Directors authorize the General Manager to execute an agreement with the City of Placentia to adjust District manhole and valve boxes impacted by the City's paving projects, subject to legal review by General Counsel. SUMMARY: The City of Placentia has provided a cost of $170,650 to adjust the District's valve boxes and manholes impacted by the City's paving projects. The District compared the City's cost to the lowest responsible bid received by the District for completing this itself, and the City's cost was approximately $58,000 less than the District's bid. FISCAL IMPACT: Budget for City of Placentia and City of Yorba Linda: $476,000 Estimated Project Costs for both Cities: $585,100 City of Placentia: Contract - $170,650 plus YLWD supplied valve boxes and lids - $13,250 City of Yorba Linda: Contract - $363,400 plus YLWD supplied valve boxes and lids - $37,800 BACKGROUND: Each year, cities within the District's service area schedule pavement improvement projects and provide the District with a general scope of work for the planned improvement areas. Where the pavement grade is changed, the District is required to adjust its manholes and valve boxes to the new grade at the District's expense. The number of valve boxes and manholes may change based on the cities' finalized plans and field conditions. The cities provide unit costs in their contracts for completing this work on behalf of the District. If the unit costs are reasonable, the District may elect to have the cities complete this work rather than use a District contractor. The City of Placentia has provided a cost of $170,650 to complete this work within the City on behalf of the District for Fiscal Year 2022- 2023. The District compared the City's cost to the lowest responsible bid received by the District, and the City's cost was approximately $58,000 less than the District's bid. Page 75 of 132 ITEM NO. 8.10. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne P. Weston, Engineering Manager Reza Afshar, Senior Engineer Adrian Ayala, Assistant Engineer I SUBJECT: Declaration of Restrictive Covenants with Michael Major and Kimberley Major of 4179 Pepper Avenue, Yorba Linda RECOMMENDATION: That the Board of Directors authorize the Board President and General Manager to execute a Declaration of Restrictive Covenants with Michael Major and Kimberley Major of 4179 Pepper Avenue, Yorba Linda. SUMMARY: The District has a recorded dedicated easement located within Lot 5 of Tract No. 10286. The property owners Michael Major and Kimberley Major, are requesting permission to retain existing encroachments as shown in the attached exhibit. Engineering staff reviewed the encroachments and recommend execution, subject to review as to form by General Counsel. FISCAL IMPACT: None. BACKGROUND: Property owners Michael Major and Kimberley Major have existing improvements on their property that encroach on a 15-foot wide easement dedicated to the District at 4179 Pepper Avenue (Lot 5 of Tract No. 10286) and are requesting permission to retain the encroachments. The existing encroachments include a concrete walkway, a planter wall, a wrought iron fence and gate, a concrete masonry unit wall, a pool, pool equipment, an artificial rock wall, artificial rocks and slide, and landscaping. The existing improvements run parallel and across the easement as shown in the enclosed exhibit. The District has an existing 30-inch waterline within the easement. Staff reviewed the encroachments and determined that the encroachments do not currently impact operation and maintenance of the District's facilities. However, if the District needs to excavate within the easement to facilitate repairs or replacement of the public water system, the subject property owners' improvements may need to be removed and may be damaged in the process. The owners Page 76 of 132 understand that with the execution of the Declaration of Restrictive Covenants, the District would not be liable for replacement of these improvements and the property owner would not be allowed to reinstall them. Staff recommends the execution of the Declaration of Restrictive Covenants, subject to review as to form by General Counsel. PRIOR RELEVANT BOARD ACTION: The Board of Directors has authorized the execution of similar Declarations of Restrictive Covenants with various developers and property owners. ATTACHMENTS: 1. Declaration of Restrictive Covenants 2. Exhibit Page 77 of 132 Page 1 of 5 YLWD – Dec of Restrictive Covenants (8/21) RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of an official service thereof. ____________________________________ Richard Mark Toy General Manager Space Above This Line for Recorder’s Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON YLWD EASEMENT) THIS DECLARATION OF RESTRICTIVE COVENANTS (“Declaration”) is made and effective on November 16, 2022 by and between YORBA LINDA WATER DISTRICT (“YLWD”), a public agency, created and operating under the authority of Division 12 of the California Water Code, and Michal R. Major and Kimberley Marie Major, husband and wife as Joint Tenants (“Owner”). YLWD and Owner are sometimes referred to herein individually as “Party” and collectively as “Parties”. RECITALS A. The Owner is the legal owner of that certain real property located at 4179 Pepper Avenue, Yorba Linda, California 92886 (“Subject Property”), which is more particularly described as follows: LOT 5 OF TRACT 10286, IN THE CITY OF YORBA LINDA, IN SAID COUNTY AND STATE, AS PER MAP RECORDED IN BOOK 437, PAGES 47 TO 50 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE RECORDER OF SAID COUNTY. B. YLWD owns an Easement, as identified on a Deed of Easement, recorded on February 27, 1979, in Book 13048, Pages 518 through 520, Official Records of Orange County, California (“Easement”), across a portion of the Subject Property. Within the Easement, YLWD owns and maintains a 30-inch water transmission pipeline and appurtenant structures (“YLWD Facilities”). Page 78 of 132 Page 2 of 5 YLWD – Dec of Restrictive Covenants (8/21) C. Without the District’s knowledge or consent and in violation of the District’s Easement rights, Owner constructed a concrete walkway, planter wall, wrought iron fence and gate, concrete masonry unit wall, pool equipment, pool, artificial rock wall, artificial rock and slide, and landscaping, (collectively herein referred to as “Improvements”) within and along the Easement area. The past, present, and future existence and/or use of the Improvements within and along the Easement area is hereinafter referred to as the “Encroachment”, which is illustrated in Exhibit “A” attached hereto. The Owner desires to retain the existing Improvements, and YLWD conditionally consents to the Encroachment as stipulated in this Declaration. D. The Owner is aware and hereby acknowledges that the Encroachment may lead to problems affecting and/or interfering with YLWD’s use of the Easement and access to YLWD Facilities. Although the existence of the Improvements within and along the Easement area may interfere or restrict YLWD’s Easement rights, which may cause the Improvements to be damaged or demolished as authorized under this Declaration, the Owner wishes to proceed with the Encroachment. E. This Declaration prohibits Owner, without YLWD’s authorization and a recorded amendment to this Declaration, from constructing and/or retaining any improvements (“Unauthorized Improvements”) other than the Improvements. DECLARATION NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties declare as follows: 1. Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code Section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assigns Obligation. Since the Owner wishes to retain the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any current and future adverse events and to fund any necessary maintenance and repair costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages to the Easement and/or YLWD Facilities caused by the Encroachment. 3. Damages to YLWD Facilities. The Owner assumes full responsibility and liability and shall pay for any cost(s) or damage(s) to the YLWD Facilities, arising from the Encroachment, which, as defined above, includes past, present, and future existence and/or use of the Improvements within and along the Easement area. YLWD shall not be responsible for any cost(s) or damage(s) to the YLWD Facilities that arise from the Encroachment. 4. Damages to Third Parties. The Owner, its successors or assigns, agrees to defend, indemnify and hold YLWD, its officers, directors, employees, agents, and consultants, harmless against any third-party claims arising out of the Encroachment. Page 79 of 132 Page 3 of 5 YLWD – Dec of Restrictive Covenants (8/21) 5. YLWD Damages to, or Demolition or Removal of, Improvements. The Owner acknowledges that the Improvements may be damaged, demolished, or removed to permit access to, or work within and under, the Easement area and YLWD Facilities. YLWD, its officers, directors, employees, agents, and consultants, shall not be responsible or liable for any damage(s) to, or demolition or removal of, the Improvements which result from YLWD’s exercise of rights under the Easement. If YLWD performs work in the Easement area and the Improvements are damaged, demolished, or removed, Owner shall not be permitted to reinstall or reconstruct the damaged, demolished, or removed Improvements. The Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys’ fees) against YLWD, its officers, directors, employees, agents, and consultants, for losses and damages to the Improvements and from any obligation to protect, preserve, repair, or replace the Improvements. 6. Unauthorized Improvements. Owner shall not (i) make any major repairs to the Improvements, which excludes replastering the pool, due to soil erosion, land settlement issues, or earthquake, or (ii) construct and/or retain any improvements other than the Improvements. If Owner discover conditions that require work prohibited under (i), Owner is required to remove the Improvements at Owner’s sole expense. If Owner performs work prohibited under (i) and (ii), YLWD may (a) require the improvement to be removed promptly at the Owner’s expense, (b) revoke the Encroachment, and/or (c) exercise any other legal remedy available to YLWD. Such Unauthorized Improvements shall be treated as Improvements and subject to this Declaration until YLWD makes it election under (a), (b), and/or (c) of this provision. GENERAL PROVISIONS 7. Recitals. The above recitals are true and correct. 8. Entire Agreement. This Declaration represents the entire and integrated agreement between the Parties and supersedes all prior negotiations, representations, or agreements, either written or oral. 9. Amendment to this Declaration. This Declaration may be amended only by written instrument signed by the Parties. 10. No Implied Waivers. If any term, condition, or provision of this Declaration is breached by either Party and thereafter waived by the other Party, that waiver will be limited to the specific breach so waived, and will not be deemed either to be a continual waiver or to waive any other breach under this Declaration. 11. Governing Law and Interpretation. This Declaration is to be governed under the laws of the State of California and interpreted according to its plain meaning as if drafted by both YLWD and Owner. Page 80 of 132 Page 4 of 5 YLWD – Dec of Restrictive Covenants (8/21) 12. Relationship of Parties. Nothing in this Declaration shall be deemed to create any form of business organization between the Parties, including, without limitation, a joint venture or partnership. 13. Resolution of Disputes. Pursuant to California Code of Civil Procedure Sections 638 et seq., any dispute arising out of this Declaration shall be resolved by judicial reference, in Orange County, by one judicial referee to determine all issues in dispute, whether of fact or of law, and to report a statement of decision. This is a waiver of any right that may exist to a jury trial, but the right to appeal is preserved. The Parties shall meet to select the referee no later than thirty (30) days after service of the initial complaint on all defendants named in the complaint. The referee must have substantial experience in the type of matter in dispute and without any relationship to either Party, unless the Parties agree otherwise. All costs incurred in connection with the judicial reference proceeding, including the cost of the stenographic record, shall be advanced equally by the Parties. However, the referee shall have the power to reallocate such costs among the Parties in the referee’s statement of decision. 14. Attorney’s Fees. In the event of any claim or legal action arising out of this Declaration, the prevailing party shall be entitled to reasonable costs and expenses, including attorney’s fees. 15. Severability. If any provision, right, or covenant of this Declaration is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the voided provision, right, or covenant shall be deemed severed from the remaining provisions of this Declaration, which shall remain valid and enforceable as permitted by law, and the Parties shall negotiate in good faith to replace the unenforceable provision(s) in accordance with the original purpose and intent of this Declaration so stated in the above Recitals. 16. Counterparts. This Declaration may be signed in multiple counterpart copies (signatures may be by facsimile or electronic mail), each of which shall be deemed an original. 17. Capacity of Signatory. The undersigned executing this Declaration on behalf of YLWD and Owner hereby personally warrant by signing this Declaration that they are authorized to bind such Party in executing this Declaration and are acting within the course and scope of that authority. 18. Recording of Declaration. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations in this Declaration. Page 81 of 132 Page 5 of 5 YLWD – Dec of Restrictive Covenants (8/21) Approved as to Form: YORBA LINDA WATER DISTRICT Kidman Gagen Law, LLP _______________________________ Andrew B. Gagen J. Wayne Miller General Counsel President Richard Mark Toy Rosanne P. Weston General Manager Engineering Manager OWNER: Michael R. Major Kimberley Marie Major Page 82 of 132 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) COUNTY OF ) On , 20___, before me, ________________________________, a Notary Public, personally appeared ____________________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature(s) on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: STATE OF CALIFORNIA ) COUNTY OF ) On , 20___, before me, ________________________________, a Notary Public, personally appeared ____________________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person whose name is subscri bed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature(s) on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: Page 83 of 132 Page 84 of 132 ITEM NO. 8.11. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Senior Engineer Ethan Nakano, Associate Engineer III SUBJECT: Terms and Conditions for Water and Sewer Service with the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints for 17142 Bastanchury Road RECOMMENDATION: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints for 17142 Bastanchury Road. SUMMARY: The applicant proposes to redevelop the 5.5-acre site consisting of parcels 1 and 2 of PM 83-1082 which are located on the southwest corner of Bastanchury Road and Osmond Street, in the City of Yorba Linda. The redevelopment includes the demolition of the existing site and the construction of a new temple, 2 auxiliary buildings, and a parking area. The proposed scope of work requiring District approval includes the abandonment of the existing water and sewer services and the construction of new water and sewer services to serve the proposed development. FISCAL IMPACT: Budgeted: Developer Funded Job Nos: J-2022-40 and J-2022-40S BACKGROUND: The District owns an existing Zone 2, 6" water main that is located on Osmond Street which currently serves the property. The existing 2" service and meter that serve the existing site will be abandoned and 2 new services will be established to serve the proposed project. The applicant proposes to install a 4" service and meter that will serve the temple and the southerly auxiliary building and a 1- 1/2" service for irrigation purposes. The District owns an existing 8" sewer main that is located on Osmond Street which currently serves the property. The existing 4" sewer laterals that serve the existing property will be abandoned and replaced with 3 new sewer connections. The applicant will construct one 6" sewer lateral to serve the Page 85 of 132 temple and two 4" sewer laterals to serve smaller site features. An exhibit illustrating the proposed project and the Terms & Conditions for Water & Sewer Service. ATTACHMENTS: 1. Terms and Conditions 2. Exhibit Page 86 of 132 Date: 11/7/2022 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER AND SEWER SERVICE NAME OF APPLICANT: The Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints LOCATION OF PROJECT: 17142 Bastanchury Road, S/W Corner of Bastanchury Road and Osmond Street PARCEL MAP NO.: 83-1082 JOB NUMBER: J-2022-40 & J-2022-40S, LOT(S): 2 The applicant will be required to complete to the satisfaction of the District the following items that have an “X” following the number. 1) ☒ The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) ☒ The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) ☒ The applicant shall submit two (2) sets of improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 4) ☒ Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. 5) ☒ The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. 6) ☒ The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. Page 87 of 132 Page 2 of 6 NAME OF APPLICANT: LOCATION OF PROJECT: 7) ☒ The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 8) ☒ The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District’s approval of the construction plans. 9) ☒ The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 10) ☒ The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 11) ☒ The applicant shall provide, per the District specifications, the "As Built" AutoCAD file (version 2016 or earlier) of the Water and/or Sewer facilities. 12) ☒ The applicant shall complete a Water Service Agreement between the Yorba Linda Water District and the applicant. 13) ☒ The applicant shall pay all of the water fees as required by the Rules and Regulations for Water Service of the District. 14) ☒ The applicant shall pay meter fees associated with the installation of radio read meters for this project. 15) ☒ The applicant shall comply with the Rules and Regulations for Water Service of the Yorba Linda Water District. 16) ☒ The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. Applicant shall also provide to the District with a copy of conditions of approval issued by the Fire Agency having jurisdiction. 17) ☒ The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan and the Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 18) ☒ The applicant’s engineer shall provide a computer hydraulic analysis report to confirm that the District’s existing water system can accommodate the project. The District’s consultant will verify, using the hydraulic model. If system deficiencies are found, the applicant shall be required to provide mitigation to the satisfaction of the District. Page 88 of 132 Page 3 of 6 NAME OF APPLICANT: LOCATION OF PROJECT: 19) ☒ The applicant’s future water facilities shall be conveyed to the District as indicated on applicant’s future Water Improvement Plans approved by the District. 20) ☒ The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test, and provide an approved copy to the District. A District representative shall be present to witness the flow test. 21) ☒ The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 22) ☐ The applicant shall install water Sampling Station(s) in conformance with the District’s Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 23) ☒ The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 24) ☐ The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 25) ☒ All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 26) ☒ The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 27) ☐ The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 28) ☒ The applicant shall adjust and raise to grade all valve covers within the limits of this project. 29) ☒ The applicant shall install a pressure regulator in all buildings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 30) ☒ The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. Page 89 of 132 Page 4 of 6 NAME OF APPLICANT: LOCATION OF PROJECT: 31) ☒ The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 32) ☒ The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly. 33) ☒ The applicant shall provide a written test report to the District certifying that the existing double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 34) ☒ The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District’s Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 35) ☒ The applicant shall install all proposed water services at a minimum five-foot horizontal separation from proposed sewer laterals. All proposed water services that cross proposed sewer laterals shall cross over the sewer lateral at a minimum one-foot vertical separation from top of the proposed sewer laterals. 36) ☐ The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 37) ☒ The applicant shall complete a Sewer Service Agreement between the Yorba Linda Water District and the applicant. 38) ☒ The applicant shall comply with the Rules and Regulations for Sewer Service of the Yorba Linda Water District. 39) ☒ The applicant shall pay all of the sewer fees as required by the Rules and Regulations for Sewer Service of the District. 40) ☒ The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and the Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 41) ☒ The applicant’s engineer shall provide sewer flow calculations to confirm that the District’s existing sewer system can accommodate the peak wastewater generation from the project. The District’s consultant will verify, using the sewer hydraulic model. If system deficiencies are found, the applicant shall be required to provide mitigation to the satisfaction of the District. Page 90 of 132 Page 5 of 6 NAME OF APPLICANT: LOCATION OF PROJECT: 42) ☒ The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) ☐ The applicant’s future sewer facilities shall be conveyed to the District as indicated on applicant’s future Water and Sewer Improvement Plans approved by the District. 44) ☒ The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District’s Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 45) ☒ All existing sewer laterals that are not useable in the new plan shall be cut and plugged at the main line. 46) ☒ The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. 47) ☒ The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 48) ☒ The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 49) ☒ A separate water service and meter shall be established for irrigation purposes only. 50) ☒ All water services for landscaping, agricultural, commercial and industrial buildings shall have a reduced pressure principle assembly, per Standard Drawing W-18. Page 91 of 132 Page 6 of 6 NAME OF APPLICANT: LOCATION OF PROJECT: 51) ☒ Minimum sewer lateral size for commercial application is to be 6” per Standard Drawing S-6. 4” sewer laterals for smaller applications within the project may be permitted at the District’s discretion. 52) ☒ Per the District’s Rules and Regulations, each lot shall have a separate service connection. Any variation from this condition will required a variance that is reviewed and approved by the District. I hereby certify that the foregoing Terms and Conditions were approved at the Click or tap to enter a date. Regular Meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Water and Sewer Service Agreement between Yorba Linda Water District and the applicant is not executed for the project under consideration. Richard Mark Toy, General Manager Reviewed by: Rosanne P. Weston, PE, PMP Engineering Manager Reviewed by: Reza Afshar, PE Senior Engineer Page 92 of 132 BA S T A N C H U R Y R O A D ( P U B L I C ) OSMOND STREET (PUBLIC) PROP. TEMPLE 1717 E. MIRALOMA AVENUE PLACENTIA, CALIFORNIA 92870 (714) 701-3000 PREPARED BY: YORBA LINDA WATER DISTRICT SCALE: DATE: FILENAME: TERMS & CONDITIONS EXHIBIT WATER & SEWER SERVICE FOR 17142 BASTANCHURY ROAD THE CORPORATION OF THE PRESIDING BISHOP OF THE CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS Page 93 of 132 ITEM NO. 9.1. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Andrew Gagen, General Counsel SUBJECT: Adoption of Encroachments Policy RECOMMENDATION: That the Board of Directors adopt Resolution No. 2022-XX adopting, in its substantial form, an Encroachments Policy. SUMMARY: The District and much of its service area are over 100 years old. During that time period and without the District’s knowledge, District customers either intentionally or unintentionally constructed improvements that encroach on District properties and/or easements, which either house District critical infrastructure or provide access to said infrastructure. District Counsel and staff prepared an Encroachments Policy for consideration by the Board to establish the procedure to mitigate or eliminate the encroachments on District property or property rights. During the Board of Directors meeting on October 24, 2022, District staff presented a draft Encroachments Policy, and the Board requested revisions to the draft Policy. In addition, among other clarifying revisions, District counsel added a step in which District staff will contact the City to determine whether the encroachment is a result of the encroachment owner’s failure to obtain a building permit. Attached is the revised Policy. BACKGROUND: To protect the District’s property and property rights (e.g. easements, licenses, etc.) from encroachments, the District prepared an Encroachments Policy because such encroachments may (a) violate the constitutional prohibition against the ‘gift of public funds’ under article XIV, section 6, of the California Constitution, (b) be a trespass and/or public and private nuisance to District real and/or personal property, (c) expose the District to liability, and/or (d) threaten the integrity of District facilities and infrastructure that provide water and sewer service to District customers. The Policy will help staff and District Counsel determine if a potential encroachment violates the District’s property rights such as a trespass on District property or breach of a written easement. If such a determination is made, the Policy establishes a procedure to mitigate or eliminate the encroachment. Page 94 of 132 The procedure includes (1) multiply efforts to communicate with the encroaching property owner, and (2) in the District’s sole discretion, a request that the encroaching owner either remove the encroachment or sign a Declaration of Restrictive Covenants, which conditionally allows, among other terms and conditions, the encroachment to exist. ATTACHMENTS: 1. Resolution No. 2022-XX - Adopting Encroachments Policy 2. Encroachments Policy Page 95 of 132 Resolution No. 2022-XX Adopting Encroachments Policy 1 RESOLUTION NO. 2022-XXX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING AN ENCROACHMENTS POLICY WHEREAS,it is the policy of the Yorba Linda Water District to protect its property and property rights from encroachments because such encroachments may (a) violate the constitutional prohibition against the ‘gift of public funds’ under article XIV, section 6, of the California Constitution, (b) be a trespass and/or public and private nuisance to District real and/or personal property, (c) expose the District to liability, and/or (d) threaten the integrity of District facilities and infrastructure that provide water and sewer service to District customers; and WHEREAS,it is the desire of the Board of Directors to establish a procedure to mitigate or eliminate encroachments on District property or property rights by adoption of an Encroachments Policy. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District hereby adopts the Encroachment Policy as attached hereto and by this reference incorporated herein. PASSED AND ADOPTED this 16th day of November 2022 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, PhD, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 96 of 132 YORBA LINDA WATER DISTRICT 4010-002-POL Page 1 of 3 ENCROACHMENTS Dept/Div: Engineering Approved By: Board of Directors Effective Date: November 16, 2022 Applicability: District Wide Supersedes: N/A See Also: N/A 1.0 Policy Regarding Encroachments on District Property and Property Rights 1.1 It is the policy of the Yorba Linda Water District to protect its property and property rights (e.g. easements, licenses, etc.) from encroachments because such encroachments may (a) violate the constitutional prohibition against the ‘gift of public funds’ under article XIV, section 6, of the California Constitution, (b) be a trespass and/or public and private nuisance to District real and/or personal property, (c) expose the District to liability, and/or (d) threaten the integrity of District facilities and infrastructure that provide water and sewer service to District customers. 2.0 Purpose of This Policy 2.1. The purpose of this Policy is to establish the procedure to mitigate or eliminate an encroachment on District property or property rights. 3.0 Determining Whether an Encroachment Violates District Property Rights 3.1 When a potential encroachment is identified, District staff will obtain the documents that identify the District’s ownership of the property or District property rights in which there is a potential encroachment. 3.2 District staff, who may consult with District Counsel, will review the documents regarding the potential encroachment to determine if the potential encroachment violates the District’s property rights such as a trespass on District property or breach of a written easement. 4.0 Procedure to Mitigate or Eliminate the Encroachment 4.1. If the District determines that the encroachment is a violation of the District’s property rights, then District staff will contact the City where the property is located to determine whether the encroachment is a result of the encroachment owner’s failure to obtain a building permit required under the City’s municipal code. If so, District staff may ask the City to enforce its municipal code and remove the unpermitted encroachment. If not or the City chooses not to do so, then District staff will contact the encroaching owner of the property and/or owner of encroaching utilities where the encroachment is located and (a) advise the encroaching owner of the encroachment, and (b) in the District’s sole discretion, either request the encroaching owner to remove the encroachment or sign a Declaration of Restrictive Covenants (“Declaration”), which is described immediately below. District staff will make at least five total attempts to contact the owner by a combination of the following, which should include at least one of the following: email, phone, certified mail, and in person. Page 97 of 132 YORBA LINDA WATER DISTRICT 4010-002-POL Page 2 of 3 4.1.1 The Declaration conditionally permits, among other terms and conditions, the encroachment as follows: (a) the encroachment owner may continue to encroach, but the District has the right to request removal in the event of necessary repairs to District facilities or other actions, (b) no further encroachments may be installed by the encroachment owner, (c) the encroachment owner assumes full responsibility and liability, and shall pay, for any costs or damages to District’s property or facilities arising from encroachment, and (d) the encroachment cannot be repaired or replaced for any reason, unless approved by the District. The District’s template for its the District’s Declaration of Restrictive Covenants (“Declaration”), which may be amended from time to time, is attached hereto as Exhibit A to this Policy. 4.1.4.2. If District staff receives a response from the owner, then District staff will either (a) schedule a site inspection, if necessary, to prepare the Declaration and/or confirm the scope of the encroachment, or (b) establish a date for when the encroachment must be removed. Under (a), if a site inspection is not necessary, or after the site inspection is concluded, District staff will prepare a Declaration and transmit it to the encroachment owner for the owner’s signature. In addition to the initial transmission of the Declaration, District staff will make at least four additional attempts to receive a signed Declaration from the owner by a combination of the following, which should include at least one of the following: email, phone, certified mail, and in person. 4.2.4.3. District staff will keep a chronology of communications and attempted contacts with the encroachment owner. 4.4. If (a) District staff does not receive a response from the encroachment owner under Sections 4.1 and 4.2, or (b) the encroachment owner rejects the District’s request to remove the encroachment or sign the Declaration, then District staff will advise the Board of Directors of (a) or (b) and, unless the Board directs staff differently, refer the matter to District Counsel. 4.4.1 District Counsel will prepare at least three letters to the owner. The first and second letter will attach a copy of the Declaration and provide the owner with approximately two weeks to respond. The third or final letter will attach a copy of a draft complaint and provide the owner with approximately two weeks to respond. Each letter will be transmitted via email and U.S. mail. 4.3.4.4.2 If (a) the owner (i) does not respond to the third and final letter or (ii) rejects the District’s request to remove the encroachment or sign the Declaration, and (b) the District Board of Directors has authorized District counsel to initiate litigation against the owner, then District Counsel will file and serve the complaint against the encroachment owner. Page 98 of 132 YORBA LINDA WATER DISTRICT 4010-002-POL Page 3 of 3 EXHIBIT A DECLARATION OF RESTRICTIVE COVENANTS Page 99 of 132 EXHIBIT A YL WD DoRC Rev. 11/08/22 1 RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District PO Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of an official service thereof. ____________________________________ Richard Mark Toy General Manager Space Above This Line for Recorder’s Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON YLWD EASEMENT) THIS DECLARATION OF RESTRICTIVE COVENANTS (“Declaration”) is made and effective on [DATE] by and between YORBA LINDA WATER DISTRICT (“YLWD”), a public agency, created and operating under the authority of Division 12 of the California Water Code, and [NAME(S)] (“Owner”). YLWD and Owner are sometimes referred to herein individually as “Party” and collectively as “Parties”. RECITALS A. The Owner is the legal owner of that certain real property located at [ADDRESS] (“Subject Property”), which is more particularly described as follows: PARCEL X IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON MAP FILED IN BOOK XX, PAGE X OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. B. YLWD owns an Easement, as identified on a Deed of Easement, recorded on Month Day, Year, in Book XXXX, Page XXX, Official Records of Orange County, California (“Easement”), across a portion of the Subject Property. The Easement is attached as Exhibit “A”. Within the Easement, YLWD owns and maintains an 8-inch sewer main pipeline and appurtenant structures (“YLWD Facilities”). C. The Owner desires to construct a wood deck and retain an existing concrete driveway, concrete retaining wall, wood fence, concrete steps, orange trees, planter and landscape (collectively herein referred to as “Improvements”) within and along the Easement area. This Declaration prohibits Owner, without YLWD’s authorization and a recorded amendment to this Declaration, from constructing and/or retaining any improvements (“Unauthorized Improvements”) other than the Improvements. Page 100 of 132 EXHIBIT A YL WD DoRC Rev. 11/08/22 2 D. The construction, existence, and/or use of the Improvements within and along the Easement area is hereinafter referred to as the “Encroachment”, which is illustrated in Exhibit “B” attached hereto. E. YLWD conditionally consents to the Encroachment as stipulated in this Declaration. The Owner is aware and hereby acknowledges that the Encroachment may lead to problems affecting and/or interfering with YLWD’s use of the Easement and access to YLWD Facilities. F. Although the construction and subsequent existence of the Improvements within and along the Easement area may interfere or restrict YLWD’s Easement rights, which may cause the Improvements to be damaged or demolished as authorized under this Declaration, the Owner wishes to proceed with the Encroachment. DECLARATION NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties declare as follows: 1. Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code Section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assigns Obligation. Since the Owner wishes to retain the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any current and future adverse events and to fund any necessary maintenance and repair costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages to the Easement and/or YLWD Facilities caused by the Encroachment. 3. Damages to YLWD Facilities. The Owner assumes full responsibility and liability and shall pay for any cost(s) or damage(s) to the YLWD Facilities, arising from the Encroachment. YLWD shall not be responsible for any cost(s) or damage(s) to the YLWD Facilities that arise from the Encroachment. 4. Damages to Third Parties. The Owner, its successors or assigns, agrees to defend, indemnify and hold YLWD, its officers, directors, employees, agents, and consultants, harmless against any third-party claims arising out of the Encroachment. 5. Damages to Improvements. The Owner acknowledges that the Improvements may be damaged or demolished to permit access to, or work within and under, the Easement area and YLWD Facilities. YLWD, its officers, directors, employees, agents, and consultants, shall not be responsible or liable for any damage(s) to, or demolition of, the Improvements which result from YLWD’s exercise of rights under the Easement. The Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys’ fees) against YLWD, its officers, directors, employees, agents, and consultants, for losses and damages to the Improvements and from any obligation to protect, preserve, repair, or replace the Improvements. Page 101 of 132 EXHIBIT A YL WD DoRC Rev. 11/08/22 3 6. Unauthorized Improvements. Owner shall not construct and/or retain any improvements other than the Improvements. If Owner constructs and/or retains any improvement other than the Improvements, YLWD may (a) require the improvement to be removed promptly at the Owner’s expense, (b) revoke the Encroachment, and/or (c) exercise any other legal remedy available to YLWD. Such Unauthorized Improvements shall be treated as Improvements and subject to this Declaration until YLWD makes it election under (a), (b), and/or (c) of this provision. GENERAL PROVISIONS 7. Recitals. The above recitals are true and correct. 8. Entire Agreement. This Declaration represents the entire and integrated agreement between the Parties and supersedes all prior negotiations, representations, or agreements, either written or oral. 9. Amendment to this Declaration. This Declaration may be amended only by written instrument signed by the Parties. 10. No Implied Waivers. If any term, condition, or provision of this Declaration is breached by either Party and thereafter waived by the other Party, that waiver will be limited to the specific breach so waived, and will not be deemed either to be a continual waiver or to waive any other breach under this Declaration. 11. Governing Law and Interpretation. This Declaration is to be governed under the laws of the State of California and interpreted according to its plain meaning as if drafted by both YLWD and Owner. 12. Relationship of Parties. Nothing in this Declaration shall be deemed to create any form of business organization between the Parties, including, without limitation, a joint venture or partnership. 13. Resolution of Disputes. Pursuant to California Code of Civil Procedure Sections 638 et seq., any dispute arising out of this Declaration shall be resolved by judicial reference, in Orange County, by one judicial referee to determine all issues in dispute, whether of fact or of law, and to report a statement of decision. This is a waiver of any right that may exist to a jury trial, but the right to appeal is preserved. The Parties shall meet to select the referee no later than thirty (30) days after service of the initial complaint on all defendants named in the complaint. The referee must have substantial experience in the type of matter in dispute and without any relationship to either Party, unless the Parties agree otherwise. All costs incurred in connection with the judicial reference proceeding, including the cost of the stenographic record, shall be advanced equally by the Parties. However, the referee shall have the power to reallocate such costs among the Parties in the referee’s statement of decision. 14. Attorney’s Fees. In the event of any claim or legal action arising out of this Declaration, the prevailing party shall be entitled to reasonable costs and expenses, including attorney’s fees. Page 102 of 132 EXHIBIT A YL WD DoRC Rev. 11/08/22 4 15. Severability. If any provision, right, or covenant of this Declaration is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the voided provision, right, or covenant shall be deemed severed from the remaining provisions of this Declaration, which shall remain valid and enforceable as permitted by law, and the Parties shall negotiate in good faith to replace the unenforceable provision(s) in accordance with the original purpose and intent of this Declaration so stated in the above Recitals. 16. Counterparts. This Declaration may be signed in multiple counterpart copies (signatures may be by facsimile or electronic mail), each of which shall be deemed an original. 17. Capacity of Signatory. The undersigned executing this Declaration on behalf of YLWD and Owner hereby personally warrant by signing this Declaration that they are authorized to bind such Party in executing this Declaration and are acting within the course and scope of that authority. 18. Recording of Declaration. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations in this Declaration. Approved as to Form: YORBA LINDA WATER DISTRICT Kidman Gagen Law, LLP _____________________________ Andrew B. Gagen J. Wayne Miller, PhD General Counsel President _____________________________ Rosanne P. Weston Richard Mark Toy Engineering Manager General Manager OWNER: Name of Signer Name of Signer Page 103 of 132 ITEM NO. 9.2. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Association of California Water Agencies (ACWA) Proposed Amended and Restated Bylaws RECOMMENDATION: That the Board of Directors review the proposed amended and restated ACWA Bylaws and designate a delegate and alternate delegate to vote on the District's behalf during the upcoming ACWA General Session Membership Meeting(s). DISCUSSION: There will be a General Session Membership Meeting at the ACWA 2022 Fall Conference on Wednesday, November 30, 2022, at 12:30 p.m. to conduct a vote by the membership on the proposed Amended and Restated Bylaws for ACWA. The primary purpose of this recommendation is to ensure ACWA's Bylaws are current and reflect consistency with other governance documents and daily operations and to implement changes related to the election of ACWA's Board Officers. Each member of the Association shall be entitled to one vote that shall be cast by its authorized representative who must be present at the membership meeting. Member agencies must indicate their designated voting delegate and alternate delegate on the attached Voter Designation and Information Form. The deadline for submitting the form is Wednesday, November 23, 2022. Detailed information regarding the proposed amendments and a redlined version of the current bylaws are attached. ACWA staff will be available at the ACWA General Session Desk, located in the Crystal Ballroom Foyer, Renaissance Esmeralda Resort Hotel, on Wednesday, November 30, between 9:00 a.m. and 11:45 a.m. to answer questions about the membership meeting and voting process. ATTACHMENTS: 1. Notice of General Session Membership Meeting 2. Voter Designation Form 3. Proposed Amended and Restated ACWA Bylaws - REDLINE Page 104 of 132 MEMORANDUM TO: ACWA Member Agency Board Presidents and General Managers CC: ACWA Board of Director FROM: Dave Eggerton, ACWA Executive Director DATE: October 5, 2022 SUBJECT: Notice of General Session Membership Meeting — November 30, 2022 There will be a General Session Membership Meeting at the ACWA 2022 Fall Conference on Wednesday, November 30, 2022, at 12:30 p.m. The meeting will be held in the Crystal Ballroom, Renaissance Esmeralda Resort Hotel, Indian Wells. The purpose of the meeting is to conduct a vote by the membership on proposed Amended and Restated Bylaws of the Association of California Water Agencies as recommended by the Board of Directors at its meeting on September 23, 2022. Proposed Amended and Restated Bylaws As part of ongoing efforts to ensure ACWA’s Bylaws are current and reflect consistency with other governance documents and daily operations and to implement changes related to the election of ACWA’s Board Officers, the Board of Directors is recommending proposed Amended and Restated Bylaws for consideration by the membership. Staff worked with Dale Stern, Downey Brand LLP, to prepare the proposed Amended and Restated Bylaws, which include the following changes: • Amendments to clarify language and to reflect consistency with other governance documents and daily operations • Amendments to implement changes to the Board Officers’ election process as recommended by the Election Task Force • Amendments to incorporate California Corporations Code provisions allowing meetings to be held by electronic communication • Restructuring and reformatting to incorporate a new numbering system Legal Affairs Committee (LAC) Chair, Jennifer Buckman, appointed LAC member, Doug Coty, to serve as the committee’s representative to review the proposed Amended and Restated Bylaws and provide an analysis pursuant to ACWA Bylaws (Article 9, Section 8). The proposed Amended and Restated Bylaws reflect the LAC’s recommended edits as adopted by the ACWA Board on September 23. Via U.S. Mail and Electronic Mail Page 105 of 132 ACWA Member Agency Board Presidents and General Managers General Session Membership Meeting — November 30, 2022 October 5, 2022 • Page 2 Redline and clean versions of the proposed Amended and Restated Bylaws are available on ACWA’s website at the link listed below. The materials have also been emailed to member agency general managers and board presidents. https://www.acwa.com/2022-membership-meeting/ Voting Process Consistent with ACWA’s Bylaws, Article 9, Section 5: • Each member of the Association shall be entitled to one vote that shall be cast by its authorized representative. • Voters must be present at the membership meeting to vote. ACWA will be using a voting system called Live-Tally, which will allow voters to vote using a handheld keypad. • Member agencies must indicate their voting representative and alternate on the attached Voter Designation & Information Form as well as provide all of the information identified on the form in order for ACWA to facilitate all aspects of the membership meeting and voting processes. Deadline & Changes The deadline for submitting the Voter Designation & Information Form is Wednesday, November 23, 2022. While this form identifies both a voting delegate and an alternate voting delegate for the ACWA member agency, if for any reason the member agency desires for the alternate voting delegate to vote at the membership meeting in place of its designated voting delegate, the member agency must notify ACWA in advance of its exchange of voting delegates by contacting the Senior Clerk of the Board Donna Pangborn at donnap@acwa.com or 916-669-2425 no later than 5:00 p.m. on Tuesday, November 29, 2022. ACWA General Session Desk ACWA staff will be available at the ACWA General Session Desk, located in the Crystal Ballroom Foyer, Renaissance Esmeralda Resort Hotel, on Wednesday, November 30, between 9:00 a.m. and 11:45 a.m. to answer questions about the membership meeting and voting process. Voters need to check in at the ACWA General Session Desk on Wednesday, November 30, between 10:00 and 11:45 a.m. to pick up handheld keypads. If you have any questions regarding the proposed Amended Bylaws and Restated or voting process, please contact Senior Clerk of the Board Donna Pangborn at 916-669-2425 or donnap@acwa.com. dgp Attachments: 1. Voter Designation & Information Form 2. Proposed Amended and Restated Bylaws (redline version) – see website link above 3. Proposed Amended and Restated Bylaws (clean version) – see website link above Page 106 of 132 Voter Designation & Information Form DEADLINE FOR RETURNING FORM(s): 11/23/2022 To: Donna Pangborn, Senior Clerk of the Board Email: donnap@acwa.com Fax: 916-669-2425 The person designated below will be attending the ACWA General Session Membership Meeting(s) on Wednesday, November 30, 2022 (and December 1, 2022 if necessary) as our voting delegate. Please designate an alternate voting delegate to facilitate any change to your voting representation at the meeting. To change your alternate, however, you must notify Donna Pangborn of the change no later than 5:00 p.m. on Tuesday, November 29, 2022. Voting delegate must be present at the membership meeting to vote. Voting Delegate’s Name Voting Delegate’s Email Voting Delegate’s Phone No. Alternate Voting Delegate’s Name Alternate Voting Delegate’s Email Alternate Voting Delegate’s Phone No. Voting Delegate’s Affiliation (if different from assigning agency)*Date *If your agency designates a delegate from another entity to serve as its authorized voting representative, please indicate the delegate’s entity in the appropriate space above. Member Agency’s Name Agency’s Phone No. Print Member Agency’s Authorized Signatory Name Authorized Signatory Signature Page 107 of 132 As recommended by the Board of Directors at its meeting on 9/23/2022. AMENDED AND RESTATED BYLAWS of the Association of California Water Agencies Page 108 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES TABLE OF CONTENTS ARTICLE 1 – General ............................................................................................................ 1 ARTICLE 2 – Membership and Dues .................................................................................... 2 ARTICLE 3 – Officers ............................................................................................................ 3 ARTICLE 4 – Board of Directors ........................................................................................... 4 ARTICLE 5 – Regions ............................................................................................................ 7 ARTICLE 6 – Executive Committee ...................................................................................... 9 ARTICLE 7 – Standing Committees .................................................................................... 10 ARTICLE 8 – Special Councils, Committees, and Task Forces ............................................ 13 ARTICLE 9 – Meetings of Members ................................................................................... 14 ARTICLE 10 –Indemnification of Directors, Officers, and Other Agents ........................... 18 ARTICLE 11 – Miscellaneous ............................................................................................. 18 Page 109 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES (As amended and restated by the Members on November 29, 2017________, 2022) ARTICLE 1Article 1 – - General 1 Name. The name of this California nonprofit corporation shall be the Association of California Water Agencies (hereinafter referred to as the Association). Principal Office. The principal office for the transaction of business of the Association isshall be located at 910 K Street, Suite 100,in Sacramento, California; provided, however, that the Board of Directors may change the location of the principal office by resolution and without amendment of these bylaws.. Purposes. The purposes of the Association shall be to work together with its members and others for the best interests of California and its citizens and landowners who use, need and depend upon water; to encourage the orderly development of the waters of the state; to seek means of obtaining and making available to all of California a dependable water supply of the best possible quality at the lowest possible cost, giving due consideration to environmental factors involved therein; to provide inspiration and leadership in meeting and solving the water supply problems of this state; to propose and advocate such policies and measures—local, state and federal—that serve the best interests of the Association, opposing those of contrary nature; to assist in promoting the health, safety and welfare of the employees of its members; and to do all other things that are in the best interests of its members. 1 Section numbers have been reformatted to incorporate a new numbering system throughout this document. Page 110 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 2 ARTICLE 2Article 2 – Membership and Dues Membership. (a) Members. Only a public district, public agency, or public organization created and operated for the purpose of controlling, treating, developing, acquiring, using or supplying water for any purpose for inhabitants or lands within the state of California, or for the protection, drainage or reclamation of lands within the state of California, may become a member of the Association. Such an entity will become a member upon written application, approval by the Board of Directors, and the payment of the required dues. Acceptance to membership shall authorize full participation in Association activities. Except as otherwise provided in subsection Section 2.01(b) below, in no case may an organization other than a state, a political subdivision (as defined in § 1.103-1(b) of the Income Tax Regulations) of a state or an entity the income of which is excluded from gross income under § 115 of the Internal Revenue Code be a member of the Association. A member of the Association shall be in good standing if in compliance with all bylaws and requirements of membership, including timely payment of annual dues and emergency assessments. (b) Honorary Life Members. Any person who has rendered conspicuous service in furthering the purposes of the Association may, by vote of the Board of Directors, be granted an honorary life membership in the Association without payment of dues or assessments. All past presidents of the Association shall automatically be honorary life members without vote of the Board of Directors. Honorary life members shall not be entitled to a vote or to hold office automatically because of their status as honorary life members. (c) Termination of Members. Membership shall cease upon the failure of any member to pay the dues provided for in Section 2.02 of this Article. The membership of any member may be terminated at any time by such member sending written notification of its intention to withdraw to the Association’s principal office. The Board of Directors may terminate the membership of any member upon 30 days’ written notice by first-class mail when it is determined at any regular Board meeting or at any special Board meeting called for that purpose that continuance of such membership would not be in the best interests of the Association. Withdrawal or termination of membership ends any participation in Association activities and shall terminate a member’s interest in the Association’s assets. Dues. The annual dues of each member of the Association shall be established by the Board of Directors; provided, however, that any member may apply for a change in its dues because of conditions that differentiate such applicant from other members. Liability of Members. No member shall be liable for any obligation incurred by the Association with the following exception: (1) the payment of the annual dues while it remains a member; Page 111 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 3 and (2) the payment of emergency assessments, which shall not exceed 10 percent of current annual dues for each member in any calendar year while it remains a member. No emergency assessment may be levied against any member during its first two years of membership in the Association. ARTICLE 3Article 3 – - Officers President and Vice President. (a) General. The president and vice president of the Association shall be the elected officers of the Association. At the time of their election the president and vice president shall each be an elected or appointed member of the governing body or commission (as appropriate) of a member agency of the Association. The president and vice president shall be elected by the members of the Association at its fall conferenceby written ballot in each odd-numbered year before the Association’s annual meeting, shall be announced at the Association’s annual meeting, shall take office on January 1 of the calendar year following election, and shall hold office until such time as their successors take office or are appointed. An elected president shall not be permitted to succeed himself/herself to that office. Except as provided in this Article, should vacancies occur in either office of the president or vice president, the Board of Directors shall appoint persons to fill such offices for the unexpired terms thereof. (b) President. The president shall preside at all meetings of the Board of Directors, the Executive Committee, and the general membership; shall appoint members of all committees, including the chair and vice chair of each, upon recommendation from members and regions (as communicated by the region chairs), with each such committee chair and vice chair ratified by the Board of Directors; and shall perform all other duties necessary to carry out the functions of the office. The president shall be a non-voting ex officio member of each committee, but shall not be an ex officio member of the NominatingElection Committee or the region boards. The president may be expelled from office with or without cause, upon the satisfaction of the following two events: (1) a two-thirds vote of the Board of Directors; and (2) a subsequent simple majority vote of the members of the Association during a meeting of the membership. (c) Vice President. The vice president shall, in the absence of the president, assume all of the duties of that office and, if a vacancy occurs, succeed thereto for the unexpired term. The vice president shall sit as a member of the Executive Committee of the ACWA Joint Powers Insurance Authority and shall perform such other duties as assigned by the president. Page 112 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 4 Executive Director/Secretary and Controller/Treasurer. (a) General. The executive director/secretary and controller/treasurer of the Association shall also be officers of the Association. The executive director/secretary shall be appointed by and hold office at the pleasure of the Board of Directors of the Association. (b) Executive Director/Secretary. The executive director/secretary shall: (1) advise and assist the Board of Directors, all committees, the boards of each region, and the workgroups of each region; (2) be responsible for administering the total operations of the Association; (3) employ, direct, and release all employed staff in accordance with the policies adopted by the Board of Directors and consistent with the budget adopted by the Board of Directors; (4) provide relevant information to the Board of Directors needed by the Board to take actions; (5) give members notice and record minutes of all meetings of the membership, Board of Directors, and Executive Committee; and (6) have such other powers and perform such other duties as may be provided and assigned by the Board of Directors directly or through the president of the Board or the Executive Committee. The executive director/secretary, with the assistance of the controller/treasurer, shall render a report to the Board of Directors at the first meeting following the close of each calendar year showing the membership of the Association, the receipts and expenditures during the year, and the work accomplished during the previous year. (c) Controller/Treasurer. The controller/treasurer shall report to and act under the direction of the executive director/secretary. The controller/treasurer shall be a signatory on all accounts held by the Association and shall act as a fiduciary for all assets of the Association. ARTICLE 4Article 4 – Board of Directors Membership. The Board of Directors shall consist of: (a) The Association president and vice president. (b) The chair and vice chair of each region. (c) The chair of each standing committee. (d) The most immediate active past president. (e) The vice president of the ACWA/Joint Powers Insurance Authority. Term of Office. The term of office of all members of the Board of Directors shall commence on January 1 of the calendar year following election of the president and vice president, except for those persons who serve on the Board of Directors by nature of their position as chairs of standing committees, whose terms shall instead commence upon their ratification by the Board of Directors. Page 113 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 5 Except as provided in Article 4, Section 11, the term of office for all members of the Board of Directors shall terminate on December 31 of the following odd-numbered year two years later, or until their successors take office. Attendance Requirement. Any member of the Board of Directors who misses two consecutive regular Board meetings without being excused by the Board will no longer be a member of the Board of Directors. Regular Meetings. Regular meetings of the Board of Directors shall be held bimonthly at such times and places as the Board may determine. Special Meetings. Special meetings may be called by the president upon the president’s own volition or shall be called by the president when requested in writing by five directors. Prior to conducting such a special meeting, the president shall consult with the Executive Committee to ensure that adequate information is available to the Board of Directors for any necessary decisions; and where such meeting is called upon the president’s own volition, the president shall also consult with the Executive Committee as to the necessity of the special meeting. Notice for special meetings shall be provided in the following manner: (1) upon 10 days’ written notice sent by mail to each director and addressed to each at the address as shown upon the records of the Association; or (2) upon 48 hours’ notice with notice provided by electronic means. When the meeting is called upon the president’s own volition, the president shall choose the form of notice; when the meeting is called by a request of five directors, the five directors shall choose the form of notice and the president shall promptly call the meeting. No business except those items described in the notice shall be transacted at any special meeting, except by consent of three-fourths of the members of the Board of Directors present. Meeting Requirements and Quorums. Meetings by Electronic Communication. Any meeting, regular of the Board of Directors, region boards, or special,any committee may be heldconducted, in personwhole or in part, by telephone conference, web video conference, or other , electronic transmission, or by electronic video screen communication. A member of the Board of Directors, a region board, or electronic transmission.any committee shall be deemed present in person at the meeting if the following apply: (a) Each director, region board, or committee member participating in the meeting can communicate concurrently with all other directors, region board, or committee members. (b) Each director, region board or, committee member is provided the means of participating in all matters before the board, region board, or committee, including the capacity to propose, or to interpose an objection to, a specific action to be taken by the Association. Quorum. At any meeting of the Board of Directors, the attendance of 50 percent of the voting members of the Board of Directors, or their permitted alternates as specified in these bylaws, shall constitute a quorum for the transaction of any business. The Board may hold a closed session for discussion of personnel matters or enforcement of violations of the code of conduct. Page 114 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 6 Alternates. Each region shall designate an alternate for each chair and vice chair, who shall meet the qualification requirements for chair and vice chair, to act at meetings of the Board of Directors when the chair or vice chair is unable to attend. The vice chair of each standing committee will be the alternate to act at meetings of the Board of Directors when the standing committee chair is unable to attend. An alternate may not act or vote on behalf of more than one member of the Board of Directors. A member of the Board of Directors may not act as an alternate for any other member. Vacancies for Standing Committee Chairs and Vice Chairs. Should a vacancy occur in the office of any standing committee chair or vice chair before the end of the term, the president shall appoint a new committee chair or vice chair to fulfill the unexpired term of such committee chair or vice chair subject to ratification by the Board of Directors. A vacancy in the office of any such standing committee chair or vice chair as described in the previous sentence shall be deemed to exist when the chair or vice chair: (1) resigns the office; (2) no longer is an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member agency of the Association to represent that member; or (3) is otherwise removed by a member agency of the Association. Duties, Authorities, and Delegation. Subject to the provisions and limitations of California Nonprofit Corporation Law, other applicable laws, and the provisions of these bylaws, the Association’s activities and affairs are to be exercised by or under the direction of the Association’s Board of Directors. The Board of Directors is responsible for the overall supervision, control, and direction of the Association. The Board of Directors shall: (1) employ and release the executive director/secretary; (2) set performance expectations for the executive director/secretary; (3) receive, review, and consider approval of executive director/secretary recommended compensation, other terms and conditions of employment, and annual evaluations as prepared by the Executive Committee; (4) annually adopt a budget; and (5) set the level of dues for the Association. Except as to the duties listed in the previous sentence, and subject to Article 3, Section 2, the Board of Directors may delegate the supervision, control, and direction of the Association’s affairs to any person or group, including a committee, provided the Association Board retains ultimate responsibility for the actions of such person or group. Where such powers are delegated, the delegation shall be documented in writing. Immediate Past President. The immediate past president automatically assumes this position after serving as the Association’s elected president and is a voting member of the Board of Directors and Executive Committee. The term of office for the immediate past president shall commence on January 1 of the calendar year following election of the president and vice president and shall terminate on December 31 of the following odd-numbered year two years later. In the event the most immediate active past president is unavailable to serve, the most recent and available active past president in succession shall serve in this capacity. Code of Conduct of Board Members. (a) Code of Conduct: Purpose and Adoption. The Board of Directors shall establish, and update as appropriate, a code of conduct for its Directors that recognizes the Page 115 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 7 Association’s commitment of integrity, respect, and fair representation to its members and the public they serve and establishes minimum ethical standards for the performance of the duties of office. The code shall be consistent with the procedural processes contained in this section. The code shall be distributed to all new Directors and shall be distributed annually to all members of the Association. (b) Violations and Enforcement Process. A violation of the code of conduct may result in removal, public censure, or private reprimand of a Director, or such other action as contained in the code of conduct. However, removal and public censure shall be reserved only for serious violations. A Director may not be removed or publically censured absent an affirmative vote of two-thirds of the voting members of the Board of Directors. A Director may be privately reprimanded for a violation of the code of conduct upon the majority vote of the quorum. Complaints of violation of the code of conduct may be filed with the president, or the vice-president if the allegations are made against the president. The president may refer a complaint of violation to the executive director/secretary for investigation. The executive director/secretary may retain a special investigator or special counsel to conduct or assist the investigation. A Director accused of a violation shall be provided a copy of the complaint. A Director that takes any hostile or retaliatory action, directly or indirectly, against a complainant is subject to removal from the Board in conformance with the process identified above. Prior to scheduling a Board action on a complaint, the president shall consult with the Executive Committee and the chair of the Legal Affairs Committee. A Director accused of a violation of the code of conduct shall be provided at least 15 days’ written notice of any meeting of the Board at which a determination of enforcement will be considered. A determination of enforcement may be made only at a regular meeting of the Board and shall be made in closed session. The determinations of the Board under this section shall not be admissible in any criminal or civil proceeding brought against the Director for conduct that violates any other law. ARTICLE 5Article 5 – Regions Boundaries of Each Region. (a) There shall be a maximum of 10 regions within the state. The Board of Directors shall determine the regional boundaries. Insofar as is practicable, the regions shall have a numerical balance in members of the Association; make geographic sense; and promote regional problem solving. (b) A member of the Association may file a written petition to the Board of Directors requesting a change in regions. Such petition shall set forth the reasons for such requested change. The Board shall, within a reasonable time, act upon such petition and set forth the reasons for its action. Such action by the Board shall be based on factors in Page 116 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 8 Section 5.01(a) above, as well as others deemed by the Board of Directors to be relevant to the decision. Officers. (a) The officers of each region shall be a chair and vice chair and three to five region board members who shall be elected by the region by September 30, or the preceding Friday if September 30 falls on a weekend, of in each odd-numbered yearsyear. A region may maintain a board of fewer than five but not less than three members as provided in the region’s rules and regulations. The officers of the region board shall take office on January 1 of the calendar year following election and shall hold office for two years, or until their successors take office. Regions shall hold elections by electronic ballot. ACWA staff shall verify the legitimacy of the ballots. (b) The officers of each region shall: (1) exercise the powers and perform duties of the region during the interim between region meetings; and (2) make recommendations to the president regarding appointments to committees. The chair and vice chair shall be the region’s representatives to the ACWA Board of Directors. (c) Each officer of a region shall be an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member agency of the Association to represent that member at the time of the appointment. Where an individual ceases to meet these criteria during the term of the office, the individual may not serve during the remaining term of that office unless that individual can again meet the criteria for the office and is appointed to complete the term. The region board may adopt more stringent criteria for board member qualifications as part of the region’s rules and regulations. (d) Should a vacancy occur in any of the region board positions before the end of the term, the remaining members of the region board shall appoint a new member. A vacancy in the office of any region board position shall be deemed to exist when a region board member: (1) resigns the office; (2) no longer is an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member of the Association to represent that member; or (3) is otherwise removed by a member agency of the Association. Nominating Committees. There shall be a nominating committee for each region consisting of three or more designees, each representing a member of the Association located within the region, appointed by the chair of the region and approved by the region board. Nominating committees shall be formed by February 28 of each odd-numbered year. The nominating committee shall announce its nominations for chair, vice chair, and region board members by August 1 of an election year. All regions must complete the election process by September 30 of the election year, or the preceding Friday if the September 30 falls on a weekend. Page 117 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 9 Meetings. The meetings of each region shall be held at both the spring and fall conferences and at such other times and places as may be determined by the region chair. Representatives of five or more members of the Association from the region present at any region meeting shall constitute a quorum for purposes of conducting the business of the region. Any meeting, regular or special, may be held in person or by telephone conference, web video conference, or other electronic video screen communication or electronic transmission, as set forth in Section 4.06. Workgroups. Workgroups may be appointed by the region chair as needed. Rules. Each region shall organize and adopt rules and regulations for the conduct of its meetings and affairs not inconsistent with the Articles of Incorporation or bylaws of the Association. Each region shall abide by the code of conduct adopted by the Board of Directors of the Association. ARTICLE 6Article 6 – Executive Committee Membership. There shall be an Executive Committee consisting of the following: the president of the Association, who shall be the chair thereof; the vice president; the most immediate active past president; the chair of the Finance Committee; and three at-large representatives selected from and by the members of the Board of Directors. The election of the three at-large representatives to the Executive Committee shall occur at the first Board of Directors meeting held in each even-numbered year and the elected representatives shall serve immediately following their election and until such time as their successors take office. To the extent practical, the Executive Committee should be constituted so as to reflect the geographic extent of the Association and the functions of the members of the Association. Powers. The Executive Committee shall have the following authority: (a) Personnel. Subject to the budget adopted by the Board of Directors, the Executive Committee shall perform the following personnel actions: (1) recommend compensation for the executive director/secretary to the Board of Directors for approval; (2) perform annual reviews of the executive director/secretary and submit that review to the Board of Directors; (3) review and approve the classification and compensation plan and publicly posted salary schedule for Association employees submitted by the executive director/secretary, which shall be reviewable by the Board of Directors, in closed session, upon request of the Board of Directors; (4) establish personnel policies for the conduct and behavior of employees, which shall be reviewable by the Board of Directors; and (5) undertake such other personnel actions as may be requested by the executive director/secretary in support of his or her oversight of all other personnel matters, which shall be reviewable by the Board of Directors, in closed session, upon request of the Board of Directors. Page 118 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 10 (b) Delegation. The Executive Committee may act pursuant to any authority specifically delegated to it by the Board of Directors. The delegation shall indicate whether the authority is still subject to the ultimate authority of the Board. (c) Authority to Act Between Meetings. The Executive Committee may act for the Board of Directors between Board meetings when calling a special meeting of the Board of Directors is impracticable, provided that no such action of the Executive Committee shall be binding on the Board of Directors until authorized or approved by the Board. The Executive Committee has the authority to authorize actions recommended by the Legal Affairs Committee (such as the filing of letter briefs and amicus curiae briefs) by electronic means without the need for an in-person or telephonic meeting, but such actions shall be ratified by the Board of Directors at its next meeting. Reporting. The president, or any person designated by the president, shall report to the Board of Directors, at each regular Board meeting, any action taken by the Executive Committee since the last preceding regular Board meeting. The minutes of Executive Committee meetings, which at that time may still be in draft form, shall be mailed (using the U.S. Postal Service, express delivery, electronic means, or otherwise) to each member of the Board of Directors at least five days prior to Board meetings, except in cases in which the Executive Committee meets during or immediately prior to a conference of the Association or immediately prior to a Board meeting, in which case the minutes, which may still be in draft form, shall be mailed to each director promptly thereafter. Meetings. The Executive Committee shall hold regularly scheduled meetings as set by the president. Special meetings of the Executive Committee may be called by the president upon notice to the members of that committee or upon written request of three Executive Committee members. Notice for special Executive Committee meetings shall be provided to the entire Board: (1) upon five days’ written notice sent by mail, or (2) upon 24 hours’ notice with notice provided by electronic means; and all such meetings shall be open to the Board of Directors. Any meeting, regular or special, may be held in person or by telephone conference, web video conference, or other electronic video screen communication or electronic transmission., as set forth in Section 4.06. All members of the Board of Directors may attend any meeting of the Executive Committee. Meetings of the Executive Committee may be closed to others at the discretion of the president or committee. Only members of the Executive Committee are allowed to vote on matters at a meeting of the committee. Minutes. The minutes of the Executive Committee meetings shall be kept by the executive director/secretary at the Association’s principal office. Actions of the Executive Committee shall be reported to the Board of Directors as provided in Section 3 of this Article and shall be available to any member of the Board of Directors upon request to the executive director/secretary. ARTICLE 7Article 7 – Standing Committees Qualification. In order to serve on any ACWA standing committee, an individual must be an officer, employee, or member of the governing body of a member agency of the Association, or other Page 119 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 11 representative duly designated by a member agency of the Association to represent that member at the time of the appointment. Where an individual ceases to meet these criteria during the term of the appointment, the individual may not serve during the remaining term of that appointment unless that individual can again meet the criteria for appointment and is appointed to complete the term. Term of Office. The term of office of standing committee members shall be two years commencing on January 1 of each even-numbered year. The term of office of standing committee chairs and vice chairs shall be approximately two years and shall commence as soon after January 1 of the even- numbered year as they may be appointed by the president and ratified by the then-seated Board of Directors, and shall terminate on December 31 of the odd-numbered year approximately two years later or until their successors are appointed and ratified. Meetings. Meetings of standing committees may be called at such times and places designated by the respective chair thereof except where provided otherwise by these bylaws. Any meetings of standing committees may be conducted, in whole or in part, by electronic transmission or by electronic video screen communication, as set forth in Section 4.06. Subject to the provisions of these bylaws and any actions that may be taken by the Board of Directors, the chairs of each standing committee may establish their own rules for the efficient operation of the committee they each chair. The chairs of each standing committee are authorized to create subcommittees and workgroups in order to complete the work of the committee. Committee Composition. Each limited standing committee shall have a membership composition that is comprised of members in the quantity and with qualifications as defined by the provisions of these bylaws. The committee chair position shall not be included in the maximum count for determining the committee composition total of any given limited committee. The committee chair shall, however, be a voting member of their respective committees subject to the rules and procedures of each committee. If the chair is absent, the vice chair shall fill the role of the chair during such absence. Agriculture Committee. There shall be an Agriculture Committee whose duty it shall be to recommend Association policy, positions and programs to the Board of Directors, State Legislative Committee, Federal Affairs Committee or other committees, as appropriate, regarding agricultural issues affecting the interests of ACWA and its members. The committee shall consist of at least one member from each region. Business Development Committee. There shall be a Business Development Committee whose duty it is to develop and recommend to the Board of Directors programs and activities to be provided or administered by the Association that generate non-dues revenue and provide a service or benefit to member agencies. The committee shall consist of at least one member from each region and may include members from any of the other standing committees. Communications Committee. There shall be a Communications Committee whose duty it shall be to develop and make recommendations to the Board of Directors regarding a comprehensive internal and external communications program for the Association and to promote development of sound Page 120 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 12 public information and education programs and practices among member agencies. The committee shall consist of no more than 40 members. The committee shall consist of at least one member from each region. Energy Committee. There shall be an Energy Committee whose duty it shall be to recommend policies and programs to the Board of Directors and to the State Legislative Committee and/or Federal Affairs Committee as appropriate. The committee shall consist of at least one member from each region. Federal Affairs Committee. There shall be a Federal Affairs Committee whose duty it shall be to review all federal legislative proposals and regulatory proposals affecting member agencies, after consulting with other appropriate committees, and to develop Association positions consistent with existing policy, where it has been established; recommend sponsorship of bills that will resolve problems or improve conditions for member agencies; and assist in the establishment of the Association’s federal legislative program. The committee shall consist of at least one, but no more than five members from each region. Finance Committee. There shall be a Finance Committee whose duty it shall be to make recommendations to the Board of Directors regarding annual budgets, dues formula and schedules and other revenue-producing income, annual audit and selection of an auditor, and investment strategies. The committee shall consist of the president and vice president of the Association as ex officio members, either the chair or vice chair from each of the Association’s 10 region boards, and one additional member from each region with experience in financial matters. Groundwater Committee. There shall be a Groundwater Committee whose duty it shall be to recommend policies and programs to the Board of Directors and to the State Legislative Committee and/or Federal Affairs Committee as appropriate. The committee shall consist of at least one member from each region. Legal Affairs Committee. There shall be a Legal Affairs Committee whose duty it shall be to support the mission of the Association, and more particularly to deal with requests for assistance involving legal matters of significance to member agencies, including but not limited to state and federal court litigation, water rights matters, selected regulatory and resources agency matters, proposed bylaw revisions, review of legislation as requested by the State Legislative Committee, etc. The committee shall consider matters and issues submitted to it in order to determine which ones are of major significance to the member agencies and, assuming a finding of major significance, recommend to the Board of Directors the position(s) which the committee believes the Association should take with respect thereto. The committee shall be composed of between 34 and 44 attorneys, each of whom shall be a member of the California Bar and shall be, or act as, counsel for a member agency, representing diverse interests within the Association, including but not limited to, different geographical areas throughout the state, large and small agencies, agricultural and urban agencies, agencies created under the various enabling statutes, etc. The committee shall consist of at least one member from each region. Page 121 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 13 Local Government Committee. There shall be a Local Government Committee whose duty it shall be to recommend policies to the State Legislative Committee, as appropriate, and Board of Directors on matters affecting water agencies as a segment of local government in California. The committee shall consist of at least one, but no more than three members from each region. Membership Committee. There shall be a Membership Committee whose duty it shall be to assist staff in developing membership recruitment and retention programs, make recommendations to the Board of Directors regarding membership policies, eligibility, and applications for membership and review and make recommendations to the Finance Committee regarding an equitable dues structure. The committee shall consist of at least one member from each region. State Legislative Committee. There shall be a State Legislative Committee whose duty it shall be to review all state legislative proposals affecting member agencies and to establish Association positions, consistent with existing policy, where it has been established; sponsor bills that will resolve problems or improve conditions for member agencies; and assist in the establishment of the Association’s legislative program. The committee shall consist of members representing a variety of types of member agencies and at least one, but no more than four members from each region. Water Management Committee. There shall be a Water Management Committee whose duty it shall be to recommend policy and programs to the Board of Directors on any area of concern in water management. The committee shall consist of at least one, but no more than four members from each region. Water Quality Committee. There shall be a Water Quality Committee whose duty it shall be to develop and recommend Association policy, positions, and programs to the Board of Directors, to promote cost-effective state and federal water quality regulations that protect the public health, to enable interested member agencies to join together to develop and coordinate with other organizations, and to present unified comments regarding agricultural and domestic water quality regulations. The committee shall consist of at least one member from each region. ARTICLE 8Article 8 – Special Councils, Committees, and Task Forces Council of Past Presidents. There shall be a Council of Past Presidents composed of all past presidents of the Association who serve on the council until each is no longer able to or wishes to serve. The council shall provide a mechanism for past presidents to continue to make valuable contributions to the Association. With approval of the Board of Directors, the president and/or executive director/secretary may assign specific responsibilities to the council from time to time. Members of the Council of Past Presidents are invited to attend and participate in the Association’s Board meetings. Section 8.02. Nominating Election Committee. There shall be a Nominating an Election Committee consisting of five or more persons appointed by the president prior to the Association’s fall conferenceeleven representatives established by February 28 of in each odd-numbered year, whose Page 122 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 14 purpose shall be to nominatepresent qualified individuals for the offices of president and vice president of the Association. The NominatingElection Committee shall publish its nominations for the offices of vet all candidates to determine if the eligibility criteria have been met. The Election Committee will endorse a preferred candidate for president and vice president of the Association not less than 10 or more than 90 days before the membership meeting is held at fall conference. Additional nominations may be made by any member of the Association presenting an open ballot with all qualifying candidates to the members for candidates for the office of president a vote in the manner set forth in Section 9.10 and vice president. Additional nominationsSection 9.11. (a) Selection. The Election Committee shall be made selected in the following manner: (1) Each of the 10 currently seated Region Boards in the odd-numbered year shall appoint a representative from the floor their respective regions to serve on the Election Committee. (2) One representative appointed by the president in the odd-numbered year shall also serve on the Election Committee. Neither the president nor the vice president qualifies to be appointed to this position. (b) Qualification. In order to serve on the Election Committee, an individual must be an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member agency of the Association to represent that member at the time of the appointment. Where an individual ceases to meet these criteria during the election of president and vice president at the membership meeting scheduled for said purposes cycle, the individual may not continue to serve. When the disqualified member represented a Region Board, the affected Region Board shall select a replacement representative. When the disqualified member represented the President, the President shall select an alternate representative. Section 8.03. Other Committees and Task Forces. Other committees and task forces may be appointed by the president from time to time as needed, consistent with and supportive of the mission of the Association. ARTICLE 9Article 9 – Meetings of Members Meetings. Meetings of the members of the Association shall be held at the Association’s conferences at such times as may be determined by to provide a report to the Board of Directors to Page 123 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 15 conduct necessary business and to electmembers on the Association’s activities during the past year, provide an overview of the Association’s finances, announce the newly elected president and vice president, which occurs at of the fall conferenceAssociation in each odd-numbered year., and to transact such other proper business as may come before the meeting. Special Meetings. Special meetings of the members of the Association may be called by the Board of Directors, the president of the Board of Directors, or by 5 percent or more of the members of the Association. Except when called by the Board, a request for a special meeting must be in writing and must be delivered in person or mailed by first-class mail addressed to the president of the Board at the principal office of the Association, with a copy to the executive director/secretary. The request must state the general nature of the business proposed to be transacted at the meeting. A special meeting that has been called by written request of 5 percent of the member agencies of the Association to the Board of Directors shall be set by the Board of Directors on a date that is not less than 35 or more than 90 days after receipt of the request. Meetings by Remote Communication. Any meeting of the members may be conducted, in whole or in part, by electronic transmission by and to the Association or by electronic video screen communication. The member shall be deemed present in person at the meeting if the following apply: (a) The Association implements reasonable measures to provide the member a reasonable opportunity to participate in the meeting and to vote on matters submitted to the members, including an opportunity to read or hear the proceedings of the meeting substantially concurrently with those proceedings. (b) If any member votes or takes other action at the meeting by means of electronic transmission to the Association or electronic video screen communication, a record of that vote or action is maintained by the Association. (c) The Association verifies that each person participating remotely is an authorized representative of a voting member. Notice Requirements for Membership Meetings. Written notice of any membership meeting shall be given to each voting member of the Association. The notice shall state the date, time, and place of the meeting; the means by which members may participate; and the general nature of the business to be transacted. The notice of any meeting at which Board officers are to be formally nominated and elected shall include the names of the recommended slate of candidates for the offices of president and vice president in addition to the election procedures. The member notification information shall also be posted on the Association’s website. Except as otherwise provided in these bylaws or California law, a written notice of regular membership meetings shall be given not less than 10 or more than 90 days before the date of the meeting to each member who, on the record date for notice of the meeting, is entitled to vote; provided, however, that if Page 124 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 16 notice is given by mail, and the notice is not mailed by first-class, registered, or certified mail, that notice shall be given not less than 20 days before the meeting. Notice Requirements for Special Meetings. The executive director/secretary shall cause notice to be given to all members of the Association of the date, time, and place of the meeting and the general nature of the business to be transacted at the meeting. No business except that specified in the request and notice may be transacted at said special meeting. If notice of the requested special meeting is not given within 20 days after receipt of the request, the person or persons requesting the meeting may give the notice. Voting. Each member of the Association in good standing at the time of the annual or special meeting shall be entitled to one vote that shall be cast by its authorized representative. Each member must designate its authorized representative prior to the annual or special meeting. It is the member’s responsibility to designate or update its authorized representative as needed. The Association may confirm with any member the identify of that member’s authorized representative for the purpose of casting ballots in any election of president and vice president. All questions, except amendments or revisions of these bylaws, shall be determined by a majority of the members present and voting. A roll call may be requested by any authorized representative. Amendment of Bylaws. These bylaws may be amended or revised by two-thirds of the member agencies of the Association present and voting at any meeting. Quorums. The presence of the authorized representative of 50 members of the Association at any meeting of the members shall constitute a quorum for transacting business. Written ballots timely received from the authorized representative of 50 members shall constitute a quorum for elections of president and vice president. Amendments, Revisions, and Resolutions. Before any amendments or revisions to the bylaws, or resolutions, may be considered at any meeting of the Association, any such amendment, revision, or resolution shall be submitted to the executive director/secretary at least 90 days prior to the first day of such meeting. The executive director/secretary shall promptly distribute any proposed amendments or revisions to the Legal Affairs Committee for the Legal Affairs Committee to develop an unbiased analysis of the amendments or revisions. Following development of an analysis for the proposed amendments or revisions, the executive director/secretary shall distribute copies of any resolutions, amendments or revisions, including any applicable analyses, to all members of the Association not less than 10 days or more than 90 days prior to presentation at such meeting. The written notice of the membership meeting shall be given to each voting member of the Association consistent with the provisions defined in Section 39.04. The 90-day rule may be suspended at any meeting of the Association by consent of three-fourths of the members present. Voting on resolutions, amendments, or revisions shall proceed as provided by Sections 59.06 and 6 of this Article9.07. Page 125 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 17 Nomination of President and Vice President. (a) Qualification. At the time of their election, the president and vice president of the Association shall each be an elected or appointed member of the governing body or commission (as appropriate) of a member agency of the Association. (b) Nominating Committee ProcessResolutions. All nominations for the positions of president and vice president shall be accompanied by an official resolution from the Association member agency on whose board the nominee serves. Said resolution shall be signed by an authorized signatory of the member agency’s Board of Directors. Section 9.09 (a) Nominations from the Floor. Additional nominations may be made by any member of the Association for the office of president and vice president. Said nominations and seconds shall be made from the floor during the election of the offices of president and vice president at the membership meeting scheduled for said purposes (as provided for in the penultimate sentence of Article 8, Section 2). Such nominations and seconds shall be made by a member of the Association and must be supported by a resolution of the governing body of the member making and seconding such nomination. The member agency on whose board the nominee serves shall submit a resolution of support if they are not the agency making the floor nomination or second. Election of President and Vice President. Each member of the Association in good standing at the time a vote is cast is entitled to one vote for election of the president and vice president that shall be cast by its authorized representative by written ballot. The ballot and any related material may be sent by first class, registered, or certified mail or electronic transmission by the Corporation that meets the requirements of Corporations Code section 20, and responses may be returned to the Corporation by mail or electronic transmission. On any written ballot for the election of president or vice president, an authorized representative acting on behalf of the member may write in a qualified candidate for election. Write-In Candidates. If a write-in candidate prevails in any election for president or vice president, such individual shall not be officially elected into such position until the Election Committee confirms that the individual meets the eligibility criteria and qualifications requirements. Run-off Election for President and Vice President. In the event a nominee does not receive a majority of the votes for president or vice president, a run-off election shall be held for the office or offices for which a majority of the votes have not been received. The run-off election shall only involve the nominees who received the two highest amounts of votes. The run-off election shall be conducted in the same manner as the initial election. Additional Procedures for Election of Officers.President and Vice President. The Board shall have the authority to develop additional proceduresadopt policies for elections Page 126 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 18 (“Election Policy”) of president and vice president setting forth the details for the election of such positions when not otherwise contrary to or covered by these bylaws. ARTICLE 10Article 10 –Indemnification of Directors, Officers, and Other Agents Right of Indemnity. To the fullest extent permitted by law, this Corporation shall indemnify its Directors, Officers, employees, and other persons described in Section 7237(a) of the California Corporations Code, including persons formerly occupying any such position, against all expenses, judgments, fines, settlements and other amounts actually and reasonably incurred by them in connection with any “proceeding,” as that term is used in that Section, and including an action by or in the right of the Corporation, by reason of the fact that the person is or was a person described in that section. "Expenses," as used in this bylaw, shall have the same meaning as in Section 7237(a) of the California Corporations Code. Approval of Indemnity. On written request to the Board by any person seeking indemnification under Section 7237(b) or Section 7237(c) of the California Corporations Code, the Board shall promptly determine under Section 7237(e) of the California Corporations Code whether the applicable standard of conduct set forth in Section 7237(b) or Section 7237(c) has been met and, if so, the Board shall authorize indemnification. Advancement of Expenses. To the fullest extent permitted by law and except as otherwise determined by the Board in a specific instance, expenses incurred by a person seeking indemnification under these bylaws in defending any proceeding covered by those Sections shall be advanced by the Corporation before final disposition of the proceeding, on receipt by the Corporation of an undertaking by or on behalf of that person that the advance will be repaid unless it is ultimately determined that the person is entitled to be indemnified by the Corporation for those expenses. Insurance. The Corporation shall have the right to purchase and maintain insurance to the full extent permitted by law on behalf of its Officers, Directors, employees, and other agents, against any liability asserted against or incurred by any officer, director, employee, or agent in such capacity or arising out of the officer’s, director’s, employee’s or agent’s status as such. ARTICLE 11Article 11 – - Miscellaneous Conduct of Meetings. All meetings of the Association shall be conducted in accord with the code of conduct and in substantial accordance with the latest edition of Robert’s Rules of Order Newly Revised unless the Board adopts alternate rules of conduct for itself and/or its committees, region boards, and region workgroups. Funds. The funds of the Association shall be used to further the aims and purposes of this Association. They shall be kept by the controller/treasurer and paid out by checks or other electronic means, which shall only be valid with two authorized signatures. The Board of Directors shall designate Page 127 of 132 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES As amended and restated by the ACWA Members on November 29, 2017______, 2022 Page | 19 by resolution which persons, other than the controller/treasurer, may sign for expenditures. The Finance Committee shall implement procedures to ensure necessary internal controls over the receipt and expenditures of Association funds and arrange for an external audit. Audit reports shall be presented to the Board of Directors. Disposition of Assets upon Dissolution. The Association’s properties and assets are irrevocably dedicated to the fulfillment of the Association’s purposes as described in Article 2 of the Articles of Incorporation. No part of the Association’s net earnings, properties and assets, on dissolution or otherwise, may inure to the benefit of any private person. Upon the dissolution of the Association, all debts thereof shall be paid and its affairs settled, and all remaining assets shall be distributed to the Association’s member political subdivisions for a public purpose, consistent with the provisions of the California Nonprofit Corporation Law relating to public mutual benefit corporations then in effect and with the Articles of Incorporation. Definitions. As used in these bylaws, the term “notice provided by electronic means” shall refer to notice given by fax or e-mail. Amended comprehensively December 1, 2010 Amended May 9, 2012 Amended May 7, 2014 Amended December 2, 2015 Amended November 29, 2017 Amended & Restated ______, 2022 Page 128 of 132 ITEM NO. 10.1. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Director's Reports The Directors will report on their attendance at the following events: OCTOBER YLWD/City of Placentia Joint Agency Committee - October 25, 2022 (Jones/Lindsey) MWDOC/OCWD Joint Planning Committee - October 26, 2022 (Miller/DesRoches) OC Sanitation - October 26, 2022 (Jones) YL Planning Commission - October 26, 2022 (Hawkins - As Needed) ISDOC Quarterly Meeting - October 27, 2022 (Jones) November ISDOC Executive Committee - November 1, 2022 YL City Council - November 1, 2022 (Lindsey) MWDOC Board - November 2, 2022 (Miller/Lindsey) OCWD Board - November 2, 2022 (Jones/DesRoches) WACO - November 4, 2022 (Lindsey) YLWD/City of YL Joint Agency Committee - November 7, 2022 (Miller/Lindsey) OC LAFCO - November 9, 2022 YL Planning Commission - November 9, 2022 (Hawkins - As Needed) WACO Planning Committee - November 15, 2022 State of OC Sanitation - November 15, 2022 (Hawkins/Jones) SAWPA Commission - November 15, 2022 YL City Council - November 15, 2022 (DesRoches) MWDOC Board - November 16, 2022 (Miller/Lindsey) OCWA Webinar - November 16, 2022 (Jones/Lindsey/Miller) OCWD Board - November 16, 2022 (Jones/DesRoches) OC Sanitation - November 16, 2022 (Jones) Page 129 of 132 ITEM NO. 10.2. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Mark Toy, General Manager SUBJECT: General Manager's Report A brief update on District activities and matters of interest as of November 8, 2022. General Manager 1. Since our last board meeting, I have continued to place an emphasis on partnerships by meeting with YLWD stakeholders. In particular, I met individually with both City Administrators for Yorba Linda and Placentia in order to discuss items of mutual interest and concern. Moreover, the resumption of Joint Agency Committee Meetings with both cities has cemented positive relationships moving forward. 2. Incremental work continues in our “Taking Care of People” committee with innovative initiatives underway in our sub-committees. In particular, we will soon unveil our new “Employee of the Quarter and Employee of the Year” Awards Policy; the intent is to award our first “Employee of the Quarter” recipient in January 2023 at a YLWD Town Hall. 3. Our partnership with the Metropolitan Water District (MET) continues with more in-depth planning between our respective staff. MET engineers and program managers conducted a site visit to our existing helicopter hydrant at Camino de Bryant in order to prepare for the design and construction of the new helicopter hydrant at the Diemer Water Treatment Plant. The Memorandum of Understanding (MOU) is still under review by MET counsel and will hopefully be finalized by the end of the calendar year. 4. I participated in the kick-off meeting regarding the Compensation Study that Koff and Associates (K&A) is conducting for the YLWD. K&A noted that it will take approximately 10 weeks to complete the project. The first order of business is identifying the comparable agencies that K&A will use to form the basis of comparison. On 11/7, the executive staff finalized our list of nine (9) agencies, and we will transmit this information to K&A as soon as possible. 5. For the month of November, I have speaking events at: (1) First Friday Friars (host Mayor Pro Tem YL), (2) YL Sunrise Rotary, (3) University of California, Irvine (UCI) Water (host ACWA), and (4) YL Chamber of Commerce. Operations Page 130 of 132 6. Groundwater production remained strong in October. Our groundwater production for the month of October was 1,310.0 AF, which includes 4.63 AF of well water pumped to waste. October groundwater total was 81.3% of supply, which brings FY YTD (BPP) GW to 81.2%. 7. During the week of November 7, 2022, Evoqua was onsite to inspect vessels in the PFAS Treatment Plant and take a look inside to see what is accumulating in the resin beds. Once they remove a layer of resin and conduct and analysis, we should gain some insight into the performance of the resin and whether any changes are needed to enhance resin life and plant production performance. The Board will be updated when results of this process are available. 8. YLWD's Surplus Property Policy requires that the Board of Directors be notified in advance of staff declaring any property as “surplus” and sending it to auction if the expected auction value exceeds $25,000. As such, staff is hereby notifying the Board of Directors that one hydro- excavator truck is being declared surplus and will be sent to auction. This unit was replaced by the new hydro-excavator that was delivered to the District last month. Engineering 9. The District is on schedule to complete the Capital Improvement Program Projects included in the Revenue Bonds, Series 2022A. To that end, two of the largest projects are making significant progress. Construction of the Hidden Hills Booster Pump Station is proceeding with no hiccups, and the Timber Ridge Booster Pump Station is under contract and ready to begin construction. 10. The Stonehaven Water Line project is on schedule to be completed prior to the Thanksgiving holiday. Finance 11. NSTR Human Resources and Risk Management 12. NSTR Public Affairs 13. On October 22, 2022, the District held its first Open House since the onset of COVID-19. Approximately 150 community members and interested folks attended. Thank you to the Board members who were able to attend. A highlight video can be found at the following link: https://www.linkedin.com/feed/update/urn:li:activity:6990749172521984000 Staff is available to answer any questions you may have regarding the foregoing. (NSTR = Nothing significant to report.) Page 131 of 132 ITEM NO. 12.1. AGENDA REPORT MEETING DATE: November 16, 2022 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Meetings from November 17 - December 31, 2022 November YL Planning Commission Wed, Nov 23 6:30 PM District Offices Closed Thu, Nov 24 7:00 AM ACWA-JPIA Fall Conference Mon, Nov 28 8:30 AM ACWA-JPIA Fall Conference Tue, Nov 29 8:00 AM ACWA Regulatory Committee Meetings Tue, Nov 29 8:00 AM ACWA Fall Conference Wed, Nov 30 8:00 AM December ACWA Fall Conference Thu, Dec 1 8:00 AM ISDOC Executive Committee Tue, Dec 6 7:30 AM SAWPA Commission Tue, Dec 6 9:30 AM YL City Council Tue, Dec 6 6:30 PM MWDOC Board Wed, Dec 7 8:30 AM OCWD Board Wed, Dec 7 5:30 PM WACO Fri, Dec 9 7:30 AM Board of Directors Regular Meeting Tue, Dec 13 6:30 PM OC LAFCO Wed, Dec 14 8:15 AM YL Planning Commission Wed, Dec 14 6:30 PM WACO Planning Committee Tue, Dec 20 7:30 AM SAWPA Commission Tue, Dec 20 9:30 AM YL City Council Tue, Dec 20 6:30 PM MWDOC Board Wed, Dec 21 8:30 AM OCWA Webinar Wed, Dec 21 12:30 PM OCWD Board Wed, Dec 21 5:30 PM Board of Directors Regular Meeting Tue, Dec 27 6:30 PM OC Sanitation Wed, Dec 28 6:00 PM YL Planning Commission Wed, Dec 28 6:30 PM Page 132 of 132 BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING YORBA LINDA WATER DISTRICT 4010-002-POL Page 1 of 4 ENCROACHMENTS Dept/Div: Engineering Approved By: Board of Directors Effective Date: November 16, 2022 Applicability: District Wide Supersedes: N/A See Also: N/A 1.0 Policy Regarding Encroachments on District Property and Property Rights 1.1 It is the policy of the Yorba Linda Water District to protect its property and property rights (e.g. easements, licenses, etc.) from encroachments because such encroachments may (a) violate the constitutional prohibition against the ‘gift of public funds’ under article XIV, section 6, of the California Constitution, (b) be a trespass and/or public and private nuisance to District real and/or personal property, (c) expose the District to liability, and/or (d) threaten the integrity of District facilities and infrastructure that provide water and sewer service to District customers. 2.0 Purpose of This Policy 2.1. The purpose of this Policy is to establish the procedure to mitigate or eliminate an encroachment on District property or property rights. 3.0 Determining Whether an Encroachment Violates District Property Rights 3.1 When a potential encroachment is identified, District staff will obtain the documents that identify the District’s ownership of the property or District property rights in which there is a potential encroachment. 3.2 District staff, who may consult with District Counsel, will review the documents regarding the potential encroachment to determine if the potential encroachment violates the District’s property rights such as a trespass on District property or breach of a written easement. 4.0 Procedure to Mitigate or Eliminate the Encroachment 4.1. If the District determines that the encroachment is a violation of the District’s property rights, then District staff will contact the City where the property is located to determine whether the encroachment is a result of the encroachment owner’s failure to obtain a building permit required under the City’s municipal code. If so, District staff may ask the City to enforce its municipal code and remove the unpermitted encroachment. If not or the City chooses not to do so, then District staff will contact the encroaching owner of the property and/or owner of encroaching utilities where the encroachment is located and (a) advise the encroaching owner of the encroachment, and (b) in the District’s sole discretion, either request the encroaching owner to remove the encroachment or sign a Declaration of Restrictive Covenants (“Declaration”), which is described immediately below. District staff will make at least five total attempts to contact the owner by a combination of the following, which should include at least one of the following: email, phone, certified mail, and in person. REVISED ITEM NO. 9.1. YORBA LINDA WATER DISTRICT 4010-002-POL Page 2 of 4 4.1.1 The Declaration conditionally permits, among other terms and conditions, the encroachment as follows: (a) the encroachment owner may continue to encroach, but the District has the right to request removal in the event of necessary repairs to District facilities or other actions, (b) no further encroachments may be installed by the encroachment owner, (c) the encroachment owner assumes full responsibility and liability, and shall pay, for any costs or damages to District’s property or facilities arising from encroachment, and (d) the encroachment cannot be repaired or replaced for any reason, unless approved by the District. The District’s template for its the District’s Declaration of Restrictive Covenants (“Declaration”), which may be amended from time to time, is attached hereto as Exhibit A to this Policy. 4.1.4.2. If District staff receives a response from the owner, then District staff will either (a) schedule a site inspection, if necessary, to prepare the Declaration and/or confirm the scope of the encroachment, or (b) establish a date for when the encroachment must be removed. Under (a), if a site inspection is not necessary, or after the site inspection is concluded, District staff will prepare a Declaration and transmit it to the encroachment owner for the owner’s signature. In addition to the initial transmission of the Declaration, District staff will make at least four additional attempts to receive a signed Declaration from the owner by a combination of the following, which should include at least one of the following: email, phone, certified mail, and in person. 4.2.4.3. District staff will keep a chronology of communications and attempted contacts with the encroachment owner. 4.4. If (a) District staff does not receive a response from the encroachment owner under Sections 4.1 and 4.2, or (b) the encroachment owner rejects the District’s request to remove the encroachment or sign the Declaration, then District staff will advise the Board of Directors of (a) or (b) and, unless the Board directs staff differently, refer the matter to District Counsel. 4.4.1 District Counsel will prepare at least three letters to the owner. The first and second letter will attach a copy of the Declaration and provide the owner with approximately two weeks to respond. The third or final letter will attach a copy of a draft complaint and provide the owner with approximately two weeks to respond. Each letter will be transmitted via email and U.S. mail. 4.3.4.4.2 If (a) the owner (i) does not respond to the third and final letter or (ii) rejects the District’s request to remove the encroachment or sign the Declaration, and (b) the District Board of Directors has authorized District counsel to initiate litigation against the owner, then District Counsel will file and serve the complaint against the encroachment owner. 4.5. Attached as Exhibit B is a flow chart that summarizes the above-described procedure to mitigate or eliminate the encroachment. If there is any conflict between the flow chart and language in this Policy, the Policy shall prevail and control. YORBA LINDA WATER DISTRICT 4010-002-POL Page 3 of 4 EXHIBIT A DECLARATION OF RESTRICTIVE COVENANTS EXHIBIT A YL WD DoRC Rev. 11/08/22 1 RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District PO Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of an official service thereof. ____________________________________ Richard Mark Toy General Manager Space Above This Line for Recorder’s Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON YLWD EASEMENT) THIS DECLARATION OF RESTRICTIVE COVENANTS (“Declaration”) is made and effective on [DATE] by and between YORBA LINDA WATER DISTRICT (“YLWD”), a public agency, created and operating under the authority of Division 12 of the California Water Code, and [NAME(S)] (“Owner”). YLWD and Owner are sometimes referred to herein individually as “Party” and collectively as “Parties”. RECITALS A. The Owner is the legal owner of that certain real property located at [ADDRESS] (“Subject Property”), which is more particularly described as follows: PARCEL X IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON MAP FILED IN BOOK XX, PAGE X OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. B. YLWD owns an Easement, as identified on a Deed of Easement, recorded on Month Day, Year, in Book XXXX, Page XXX, Official Records of Orange County, California (“Easement”), across a portion of the Subject Property. The Easement is attached as Exhibit “A”. Within the Easement, YLWD owns and maintains an 8-inch sewer main pipeline and appurtenant structures (“YLWD Facilities”). C. The Owner desires to construct a wood deck and retain an existing concrete driveway, concrete retaining wall, wood fence, concrete steps, orange trees, planter and landscape (collectively herein referred to as “Improvements”) within and along the Easement area. This Declaration prohibits Owner, without YLWD’s authorization and a recorded amendment to this Declaration, from constructing and/or retaining any improvements (“Unauthorized Improvements”) other than the Improvements. EXHIBIT A YL WD DoRC Rev. 11/08/22 2 D. The construction, existence, and/or use of the Improvements within and along the Easement area is hereinafter referred to as the “Encroachment”, which is illustrated in Exhibit “B” attached hereto. E. YLWD conditionally consents to the Encroachment as stipulated in this Declaration. The Owner is aware and hereby acknowledges that the Encroachment may lead to problems affecting and/or interfering with YLWD’s use of the Easement and access to YLWD Facilities. F. Although the construction and subsequent existence of the Improvements within and along the Easement area may interfere or restrict YLWD’s Easement rights, which may cause the Improvements to be damaged or demolished as authorized under this Declaration, the Owner wishes to proceed with the Encroachment. DECLARATION NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties declare as follows: 1. Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code Section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assigns Obligation. Since the Owner wishes to retain the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any current and future adverse events and to fund any necessary maintenance and repair costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages to the Easement and/or YLWD Facilities caused by the Encroachment. 3. Damages to YLWD Facilities. The Owner assumes full responsibility and liability and shall pay for any cost(s) or damage(s) to the YLWD Facilities, arising from the Encroachment. YLWD shall not be responsible for any cost(s) or damage(s) to the YLWD Facilities that arise from the Encroachment. 4. Damages to Third Parties. The Owner, its successors or assigns, agrees to defend, indemnify and hold YLWD, its officers, directors, employees, agents, and consultants, harmless against any third-party claims arising out of the Encroachment. 5. Damages to Improvements. The Owner acknowledges that the Improvements may be damaged or demolished to permit access to, or work within and under, the Easement area and YLWD Facilities. YLWD, its officers, directors, employees, agents, and consultants, shall not be responsible or liable for any damage(s) to, or demolition of, the Improvements which result from YLWD’s exercise of rights under the Easement. The Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys’ fees) against YLWD, its officers, directors, employees, agents, and consultants, for losses and damages to the Improvements and from any obligation to protect, preserve, repair, or replace the Improvements. EXHIBIT A YL WD DoRC Rev. 11/08/22 3 6. Unauthorized Improvements. Owner shall not construct and/or retain any improvements other than the Improvements. If Owner constructs and/or retains any improvement other than the Improvements, YLWD may (a) require the improvement to be removed promptly at the Owner’s expense, (b) revoke the Encroachment, and/or (c) exercise any other legal remedy available to YLWD. Such Unauthorized Improvements shall be treated as Improvements and subject to this Declaration until YLWD makes it election under (a), (b), and/or (c) of this provision. GENERAL PROVISIONS 7. Recitals. The above recitals are true and correct. 8. Entire Agreement. This Declaration represents the entire and integrated agreement between the Parties and supersedes all prior negotiations, representations, or agreements, either written or oral. 9. Amendment to this Declaration. This Declaration may be amended only by written instrument signed by the Parties. 10. No Implied Waivers. If any term, condition, or provision of this Declaration is breached by either Party and thereafter waived by the other Party, that waiver will be limited to the specific breach so waived, and will not be deemed either to be a continual waiver or to waive any other breach under this Declaration. 11. Governing Law and Interpretation. This Declaration is to be governed under the laws of the State of California and interpreted according to its plain meaning as if drafted by both YLWD and Owner. 12. Relationship of Parties. Nothing in this Declaration shall be deemed to create any form of business organization between the Parties, including, without limitation, a joint venture or partnership. 13. Resolution of Disputes. Pursuant to California Code of Civil Procedure Sections 638 et seq., any dispute arising out of this Declaration shall be resolved by judicial reference, in Orange County, by one judicial referee to determine all issues in dispute, whether of fact or of law, and to report a statement of decision. This is a waiver of any right that may exist to a jury trial, but the right to appeal is preserved. The Parties shall meet to select the referee no later than thirty (30) days after service of the initial complaint on all defendants named in the complaint. The referee must have substantial experience in the type of matter in dispute and without any relationship to either Party, unless the Parties agree otherwise. All costs incurred in connection with the judicial reference proceeding, including the cost of the stenographic record, shall be advanced equally by the Parties. However, the referee shall have the power to reallocate such costs among the Parties in the referee’s statement of decision. 14. Attorney’s Fees. In the event of any claim or legal action arising out of this Declaration, the prevailing party shall be entitled to reasonable costs and expenses, including attorney’s fees. EXHIBIT A YL WD DoRC Rev. 11/08/22 4 15. Severability. If any provision, right, or covenant of this Declaration is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the voided provision, right, or covenant shall be deemed severed from the remaining provisions of this Declaration, which shall remain valid and enforceable as permitted by law, and the Parties shall negotiate in good faith to replace the unenforceable provision(s) in accordance with the original purpose and intent of this Declaration so stated in the above Recitals. 16. Counterparts. This Declaration may be signed in multiple counterpart copies (signatures may be by facsimile or electronic mail), each of which shall be deemed an original. 17. Capacity of Signatory. The undersigned executing this Declaration on behalf of YLWD and Owner hereby personally warrant by signing this Declaration that they are authorized to bind such Party in executing this Declaration and are acting within the course and scope of that authority. 18. Recording of Declaration. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations in this Declaration. Approved as to Form: YORBA LINDA WATER DISTRICT Kidman Gagen Law, LLP _____________________________ Andrew B. Gagen J. Wayne Miller, PhD General Counsel President _____________________________ Rosanne P. Weston Richard Mark Toy Engineering Manager General Manager OWNER: Name of Signer Name of Signer YORBA LINDA WATER DISTRICT 4010-002-POL Page 4 of 4 EXHIBIT B FLOW CHART RE PROCEDURE TO MITIGATE OR ELIMINATE THE ENCROACHMENT EXHIBIT "B" ENCROACHMENTS POLICY FLOW CHART LEGEND: (ENCROACHMENT IDENTIFIED ) 1 � ( START/END 1 CONTACT CITY DECISION CITY PERMIT? NO CITY TO ENFORCE YES MUNICIPAL CODE? ACTIVITY YESCITY & YLWD TO 1 COORDINATE ACTION DOCUMENT CONTACT OWNER r (MIN. 5 ATTEMPTS VIA EMAIL, PHONE, NO CERTIFIED MAIL, OR IN PERSON) START COMMUNICATION LOG 1 SITE INSPECTION PREPARE & SEND LETTER PREPARE & SEND TO INFORM OWNER OF DRAFT DORC TO INFORM ENCROACHMENT REMOVAL DECISION OWNER DATE TT DRAFT DORC ACCEPTANCE - LTO OWNER SENT REFUSAL SENT TO OWNER ACCEPTANCE REMOVED & FINAL INSPECTION NO RESPONSE NO RESPONSE MIN. 5 ATTEMPTS TO r MIN. 5 ATTEMPTS TO NO ACCEPTANCE CONTACT OWNER VIA ADVISE BOARD NO CONTACT OWNER VIA ACCEPTANCE RESPONSE I RESPONSE EMAIL, PHONE, CERTIFIED IN- EMAIL, PHONE, CERTIFIED M MAIL OR IN PERSON AIL OR IN PERSON STAFF CONTACTS lDISTRICT COUNSEL 1 SEND LETTER TO OWNER (IF APPLICABLE, ATTACH DORC) VIA EMAIL & U.S. MAIL REFUSAL- ALLOW 2 WEEKS TO = ACCEPTANCE RESPOND NO REPONSE 1 2ND LETTER TO OWNER VIA EMAIL & U.S. MAIL I REFUSAL- ALLOW 2 WEEKS TO ACCEPTANCE RESPOND NO REPONSE 1 3RD LETTER & DRAFT COMPLAINT VIA EMAIL & U.S. MAIL ALLOW 2 WEEKS TO RESPOND NO RESPONSE r r BOARD TO CONSIDER AUTHORIZING DISTRICT COUNSEL TO INITIATE LITIGATION r � r ( COMPLAINT DTOEOWNER ) (TAKE OTONBOARD FOR DORC