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HomeMy WebLinkAbout2010-03-11 - Board of Directors Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 11, 2010, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL William R. Mills, President Michael J. Beverage, Vice President Ric Collett Phil Hawkins John W. Summerfield 4. ADDITIONS/DELETIONS TO THE AGENDA 5. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 6. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 6.1. Minutes of the Regular Board of Directors Meeting Held February 25, 2010 Recommendation: That the Board of Directors approve the minutes as presented. 6.2. Minutes of the Special Board of Directors Meeting Held February 26, 2010 Recommendation: That the Board of Directors approve the minutes as presented. 6.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $812,016.02. 6.4. Progress Payment No. 22 for the Highland Reservoir Replacement Project Recommendation: That the Board of Directors approve Progress Payment No. 22 in the net amount of $319,417.76 to Schuler Engineering Corporation and 10% retention of $35,490.86 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 6.5. On-Call Services Contract with MWH Americas, Inc. (MWH) Recommendation: That the Board of Directors authorize approval of On-Call Services contract Amendment No. 2 with MWH Americas, Inc. for a fee increase not to exceed $47,240, resulting in a total fee of $95,760. 6.6. Engineering Services for Wellhead Equipping of YLWD Well No. 20 Recommendation: That the Board of Directors authorize execution of a Professional Services Agreement with Civiltec for a fee not to exceed $79,820, to provide engineering design, bid support and construction management services for Wellhead Equipping of Well No. 20. 6.7. Quarterly Investment Report for December 2009 Recommendation: That the Board of Directors receive and file the investment report for the quarter ending December 31, 2009. 7. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 7.1. Appointment of Corporate Officer Recommendation: That the Board of Directors appoint Stephen Parker, Finance Director, as Auditor for the Yorba Linda Water District. 7.2. Revised Public Investment Policy Recommendation: That the Board of Directors adopt Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Resciding Resolution No. 09-01. 7.3. Nomination of Joan C. Finnegan as President of ACWA/JPIA Recommendation: That the Board of Directors adopt Resolution No. 10-04 Concurring in Nomination of Joan C. Finnegan as President of ACWA/JPIA. 7.4. Preparation of a Cost of Service and Water Rate Study Recommendation: That the Board of Directors authorize The General Manager to execute a Professional Services Agreement with Raftelis Financial Consultants in the amount of $77,005 to conduct a Cost of Service and Water Rate Study. 8. REPORTS, INFORMATION ITEMS, AND COMMENTS 8.1. President's Report 8.2. Directors' Reports 8.3. General Manager's Report California's Comprehensive Water Package International Forum - March 12, 2010 2010 Children's Water Education Festival - March 25, 2010 8.4. General Counsel's Report 8.5. Future Agenda Items and Staff Tasks 9. COMMITTEE REPORTS 9.1. Executive Administrative-Organizational Committee (Mills/Beverage) Alternate: Collett . Meeting scheduled March 16, 2010 at 4:00 p.m. 9.2. Finance-Accounting Committee (Sum merfield/Collett) Alternate: Mills . Meeting scheduled March 15, 2010 at 8:00 a.m. 9.3. Personnel-Risk Management Committee (Collett/Hawkins) Alternate: Summerfield Meeting scheduled March 9, 2010 at 4:00 p.m. has been cancelled. Meeting scheduled April 13, 2010 at 4:00 p.m. 9.4. Planning-Engineering-Operations Committee (Mills/Summerfield) Alternate: Beverage Minutes of meeting held March 4, 2010 at 4:00 p.m. Meeting scheduled April 1, 2010 at 4:00 p.m. 9.5. Public Information-Technology Committee (Beverage/Hawkins) Alternate: Summerfield Minutes of meeting held March 2, 2010 at 4:00 p.m. Meeting scheduled April 6, 2010 at 4:00 p.m. 9.6. MWDOC/OCWD Ad Hoc Committee (Mills/Beverage) Alternate: Collett Meeting scheduled March 23, 2010 at 4:00 p.m. 9.7. Citizens Advisory Committee (Directors Rotate Attendance) Minutes of meeting held March 1, 2010 at 8:30 a.m. (Hawkins) Meeting scheduled March 29, 2010 at 8:30 a.m. (Beverage) 10. INTERGOVERNMENTAL MEETINGS 10.1. YL City Council - March 2, 2010 (Mills) 10.2. MWDOC/MWD Workshop - March 3, 2010 (Staff) 10.3. OCWD Board - March 3, 2010 (Staff) 10.4. YL Planning Commission - March 10, 2010 (Collett) 11. BOARD OF DIRECTORS ACTIVITY CALENDAR 11.1. Meetings from March 12, 2010 - April 30, 2010 12. CONFERENCES AND SEMINARS 12.1. Santa Ana River Watershed Conference - April 22, 2010 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. Conference with Legal Counsel - Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: Itani, et al vs. YLWD (OC Superior Court - Case No. 00124906) Name of Case: Johnson, et al vs. YLWD, et al (OC Superior Court - Case No. 00125994) Name of Case: State Farm General Insurance Company vs. YLWD (OC Superior Court - Case No. 00311353) Name of Case: Weiss vs. YLWD (OC Superior Court - Case No. 00319080) Name of Case: Lindholm vs. YLWD, et al (OC Superior Court - Case No. 00320239) Name of Case: Travelers Commercial Insurance Company vs. YLWD (OC Superior Court - Case No. 00327152) Name of Case: Rodriguez vs. YLWD, et al (OC Superior Court - Case No. 00333938) Name of Case: Manista vs. YLWD, et al (OC Superior Court - Case No. 00332968) 14. ADJOURNMENT 14.1. The next regular meeting of the Board of Directors will be held March 25, 2010 at 8:30 a. m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 6.1 AGENDA REPORT Meeting Date: March 11, 2010 Subject: Minutes of the Regular Board of Directors Meeting Held February 25, 2010 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Harne. Description: Tyne. 022510 BOD - Minutes.doc BOD Mtg Minutes 02/25/10 Minutes Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING February 25, 2010 1. CALL TO ORDER The February 25, 2010 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Mills at 8:30 a.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. 2. PLEDGE OF ALLEGIANCE o 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT William R. Mills, President Ken Vecchiarelli, General Manager Michael J. Beverage, Vice President Pat Grady, Assistant General Manager John W. Summerfield Art Kidman, Legal Counsel Lee Cory, Operations Manager Stephen Parker, Finance Director Anthony Manzano, Sr. Project Manager Damon Micalizzi, PI Specialist Annie Alexander, Executive Secretary DIRECTORS ABSENT Ric Collett OTHER VISITORS Laurie Ellen Park, Associate, McCormick, Kidman & Behrens 4. ADDITIONS/DELETIONS TO THE AGENDA Mr. Vecchiarelli explained that there was no longer a need for a Closed Session and that Mr. Kidman would provide the Board with a brief report regarding the status of pending litigation during his comments under Item No. 9.4. 5. PUBLIC COMMENTS None. 6. SPECIAL RECOGNITION 6.1. Introduce Stephen Parker, Newly Hired Finance Director Mr. Vecchiarelli introduced and the Board welcomed Mr. Stephen Parker, newly hired Finance Director. 1 6.2. Introduce Damon Micalizzi, Newly Hired Public Information Specialist Mr. Vecchiarelli introduced Damon Micalizzi, newly hired Public Information Specialist. 7. CONSENT CALENDAR On a motion by Director Beverage, seconded by Director Summerfield, the Board voted 3-0 to approve the Consent Calendar. 7.1. Minutes of the Regular Board of Directors Meeting Held February 11, 2010 Recommendation. That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Special Board of Directors Meeting Held February 18, 2010 Recommendation. That the Board of Directors approve the minutes as presented. 7.3. Payment of Bills, Refunds, and Wire Transfers Recommendation. That the Board of Directors ratify and authorize disbursements in the amount of $807,407.74. 7.4. Progress Payment No. 9 for Construction of the Hidden Hills Reservoir Project Recommendation. That the Board of Directors approve Progress Payment No. 9 in the net amount of $237,177.00 to Pacific Hydrotech Corporation for construction of the Hidden Hills Reservoir Project, Job No. 200028. 7.5. Final Progress Payment No. 5 for the San Antonio Pressure Reducing Station Upgrade Project Recommendation: That the Board of Directors approve Final Progress Payment No. 5 in the net amount of $11,499.88, to Paulus Engineering, Inc., authorize staff to file the Notice of Completion and release the retention thirty-five days following recordation if no liens have been filed; release the Labor and Material Bond; and release the Faithful Performance Bond in one year if no defects have been found for the San Antonio Pressure Reducing Station Upgrade Project, Job No. 200901. 8. ACTION CALENDAR 8.1. Water Bill Statement Redesign Mr. Grady explained that staff and the Public Information-Technology Committee had worked together on redesigning the water bill statement. Staff expects to have the new design implemented by late March or early 2 April. Mr. Grady then responded to questions from the Board regarding the design of the statement. Director Summerfield requested that the term "units" be added near the numbers on the left hand side of the water usage graph for clarity. Director Mills questioned why the statement didn't include the cost per gallon. Mr. Vecchiarelli responded that including the cost per gallon may undervalue the commodity. Mr. Kidman then commented on the water bond package and possible requirements to demonstrate conservation in gallons per capita per day. Director Beverage requested that the detachment section be revised so that it would fit properly in a window envelope. On a motion by Director Beverage, seconded by Director Summerfield, the Board voted 3-0 to approve the redesigned water bill statement as revised. 9. REPORTS, INFORMATION ITEMS AND COMMENTS 9.1. President's Report President Mills reported that he had received a request from MWDOC for the District to adopt a resolution concurring with their nomination of Joan Finnegan as President of ACWA/JPIA. President Mills requested staff to prepare this item for consideration at the next Board meeting. 9.2. Directors' Reports None. 9.3. General Manager's Report Mr. Vecchiarelli stated that he had attended the AWWA/WEF Effective Utility Management Conference in San Francisco and that he would provide a more detailed report at a later date. 9.4. General Counsel's Report Mr. Kidman reported that the judge did not make a ruling at the hearing held earlier that week regarding the cases related to the Freeway Complex Fire. 9.5. Future Agenda Items and Staff Tasks None. 10. COMMITTEE REPORTS 10.1. Executive-Administrative-Organizational Committee (Mills/Beverage) Alternate. Collett Minutes of meeting held February 17, 2010 were provided in the agenda packet. Directors Mills and Beverage attended. Matters discussed during the meeting were as follows: Draft Ethics Policy; Interviews for Potential Board Candidates; City of Yorba Linda and City of Placentia Sewers; OCWD Annexation; Conservation Ordinance Enforcement Policy Review; General Counsel's Monthly Summary Billing Report; Directors' and 3 General Manager's Fees and Expenses (Oct-Dec); and General Manager's Action Plan and Employment Contract. Meeting scheduled March 16, 2010 at 4:00 p.m. 10.2. Finance-Accounting Committee (Summerfield/Collett) Alternate: Mills Minutes of meeting held February 17, 2010 were provided in the agenda packet. Directors Summerfield and Collett attended. Matters discussed during the meeting were as follows: CalTrust Investment Alternative (Conference Call); Monthly Portfolio Reports for January 2010; Introduction of Stephen Parker, Newly Hired Finance Director; December Budget to Actual Results and FYE Projections; Monthly Investment Report for December 2009; Proposed Calendar for FY 2010/11 Budget; Water Rate Study Update; and Retirement Alternatives Survey. Meeting scheduled March 15, 2010 at 8:00 a.m. 10.3. Personnel-Risk Management Committee (Collett/Beverage) Alternate: Summerfield Meeting scheduled March 9, 2010 at 4:00 p.m. 10.4. Planning-Engineering-Operations Committee (Mills/Summerfield) Alternate: Beverage Meeting scheduled March 4, 2010 at 4:00 p.m. 10.5. Public Information-Technology Committee (Beverage/Summerfield) Alternate: Meeting scheduled March 2, 2010 at 4:00 p.m. 10.6. MWDOC/OCWD Ad Hoc Committee (Mills/Beverage) Alternate: Collett Meeting scheduled March 23, 2010 at 4:00 p.m. 10.7. Citizens Advisory Committee (Directors Rotate Attendance) Meeting scheduled March 1, 2010 at 8:30 a.m. (Beverage) Director Beverage stated that he would be unable to attend this meeting. Staff will check to see if Director Collett would be available to attend and rescheduled Director Beverage's attendance to the next meeting on March 29, 2010. 4 11. INTERGOVERNMENTAL MEETINGS 11.1. YL City Council - February 16, 2010 (Summerfield) Director Summerfield commented on several matters which were discussed during the meeting including a conditional use permit for Friends Christian High School, proposed zoning code amendment, replacement of grass at the Black Gold Golf Course and the banning of internet/cell phone usage during City Council meetings. Mr. Vecchiarelli stated that he had been asked to provide a brief presentation at the next City Council meeting regarding the District's water quality program and to comment on public concerns regarding arsenic levels. 11.2. MWDOC Board - February 17, 2010 (Staff) Staff did not attend. 11.3 OCWD Board - February 17, 2010 (Staff) R1 Staff did not attend. 11.4. YL Planning Commission - February 24, 2010 (Beverage) Director Beverage did not attend. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from February 26, 2010 - March 31, 2010 The Board reviewed the listed meetings and made no changes. 13. CLOSED SESSION No Closed Session was held as there was no longer a need. 13.1. Conference with Legal Counsel - Pending Litigation Pursuant to Subdivision (a) of Section 54956.9 of the California Government Code Name of Case: Itani, et al vs. YLWD (OC Superior Court - Case No. 00124906) Name of Case: Johnson, et al vs. YLWD, et al (OC Superior Court - Case No. 00125994) Name of Case: State Farm General Insurance Company vs. YLWD (OC Superior Court - Case No. 00311353) Name of Case: Weiss vs. YLWD (OC Superior Court - Case No. 00319080) Name of Case: Lindholm vs. YLWD, et al (OC Superior Court - Case No. 00320239) Name of Case: Travelers Commercial Insurance Company vs. YLWD (OC Superior Court - Case No. 00327152) 5 14. ADJOURNMENT 14.1. The meeting was adjourned at 9:07 a.m. The next regular meeting of the Board of Directors will be held February 25, 2010 at 8:30 a.m. Ken Vecchiarelli Board Secretary ~a 6 ITEM NO. 6.2 AGENDA REPORT Meeting Date: March 11, 2010 Subject: Minutes of the Special Board of Directors Meeting Held February 26, 2010 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Harne. Description: Tyne. 022610 BOD - Minutes.doc BOD Mtg Minutes 02/26/10 Minutes Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING February 26, 2010 1. CALL TO ORDER The February 26, 2010 special meeting of the Yorba Linda Water District Board of Directors was called to order by President Mills at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. 2. PLEDGE OF ALLEGIANCE o 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT William R. Mills, President Ken Vecchiarelli, General Manager Michael J. Beverage, Vice President Annie Alexander, Executive Secretary Ric Collett John W. Summerfield 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. PUBLIC COMMENTS None. 6. ACTION CALENDAR 6.1. Final Candidate Interviews for Board Vacancy The Board conducted candidate interviews for the vacancy in the following order: Don Holt .a James Wohlt' Gary Melton Phil Hawkins Robert Kiley The Board took a brief recess following the interviews and began deliberations upon returning. On a motion by Director Summerfield, seconded by Director Collett, the Board voted 4-0 to select Phil Hawkins as the finalist. 1 The candidates were invited back into the room and President Mills announced the Board's decision. The Board thanked all of the candidates for their efforts and congratulated Mr. Hawkins. 6.2. Appointment to the Board of Directors The Board voted 4-0 on a Roll Call to adopt Resolution No. 10-02 appointing Phil Hawkins to the office of Director of the Yorba Linda Water District. 6.3. Administer Oath of Office Mr. Vecchiarelli administered the Oath of Office immediately following the close of the meeting. 7. ADJOURNMENT 7.1. The meeting was adjourned at 6:02 p.m. The Board of Directors will hold a workshop meeting on March 8, 2010 at 4:00 p.m. The next regular meeting will be held March 11, 2010 at 8:30 a.m. Ken Vecchiarelli Board Secretary ~r 2 ITEM NO. 6.3 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: Yes Total Budget: N/A To: Board of Directors Cost Estimate: $812,016.02 Funding Source: All Funds From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Stephen Parker, Finance Dept: Finance Director Reviewed by Legal: N/A Prepared By: Maria Trujillo, Accounting CEQA Compliance: N/A Assistant I Subject: Payments of Bills, Refunds, and Wire Transfers SUMMARY: Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors' approval. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $812,016.02. DISCUSSION: The major items and wire transfers on this disbursement list are as follows: A check of $49,960.72 to MWH Americas, Incorporated for Highland Booster Station January 2010 services rendered; and, a check of $319,417.76 to Schuler Engineering Corporation for Highland Reservoir February progress payment. The balance of $228,440.55 is routine invoices. ADP issues our payroll checks, with the exception of the third party checks. The Accounts Payable check register total is $597,819.03; Payroll No. 4 total is $214,196.99; and, the disbursements of this agenda report are $812,016.02. A summary of the checks is attached. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. ATTACHMENTS: Narnc: Descr1rhon_ TvGDe CkReg31110 BOD.pdf Check Register Backup Material 09-CS 311 .doc Cap Sheet Backup Material Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 MB abstained from voting on Check No. 53658 as it was an expense reimbursement for himself. Yorba Linda Water District Check Register For Checks Dated: 2/26,12010 thru 3/11,12010 Check No. Date Vendor Name Amount Description ($25k or greater) 5:3538 03/11/2610 Abbott Staffing Group, Inc_ 2,01535 53593 03/11/2010 Abbott Staffing Group, Inc. 1,881.05 53594 03/11/2010 Alternative Hose inc. 44.23 53539 03/11/2010 Anaheim Wheel & Tire 305.00 53595 03/11/2010 Anaheim Wheel & Tire 170.00 53540 03/11/2010 Andy Gurnp Inc. 274.00 53596 03/11/2010 Answer One Communications 368.73 53541 03/11/2010 Aqua-Metric Sales Co. 3,689.67 53597 03/11/2010 Aqua-Metric Sales Ca. 6,233.55 53542 03/11/2010 Aramark Uniform Services, Inc 400.10 53598 03/11/2010 Aramark Uniform Services, Inc 702.48 53543 03/11/2010 Arrow Hardware 37110 53544 03/11/2010 Associated Laboratories 1,929.00 53546 03/11/2010 AT & T 45.08 53545 03/11/2010 AT & `f - Calnet2 3,832.92 53599 03/11/2.01.0 AT & T Calnet2 435.40 53547 03/11/2010 Auto Glass Tech 268,56 53600 03/11/2010 Automated Office Products 219 68 53548 03/11/2070 AWWA - Dues 676.00 53549 03/11/2010 B & M Lawn and Garden Inc 19.87 53603 03/11/2010 B & M Lawn and Carden Inc 5.04 53601 03/11/2010 Bank Of Arnerica 268.58 53602 03/11/2010 Bell Pipe & Supply 65.64 53604 03/11/2010 Brown And Caldwell 200.00 53589 03/17./2010 Cable Cora 461.94 53605 03/11/2010 Calif Water Environ Assn (CWEA) 225.00 53606 03/11/2010 Calolympic Safety Co. 47.82 53550 03/11/2010 Carolla Engineers 24,281.20 53551 03/11/2010 CDM, Inc. 4,878.41 53552 03/11/2010 CDW Government, Inc 2,.125.47 53607 03/11/2010 CDW Government, Inc 989.63 53608 03/11/2010 Ceridian Benefits Services 90.00 53610 03/11/201.0 Citizen's Business Bank 35,490.86 Highland Res retentn Feb 53611 03/11/2010 City Of Placentia 3,336.00 53553 03/11/2010 Cla-Val Co. 245.20 53554 03/11/7010 Clinical Lab. Of Sari Bern. 1,855.00 53555 03/11/2010 Culligan 1,607.50 53556 03/11/2010 Dangelo Co- 1,943.91 53557 03/1.1/2010 Datalck Orange County 2€30-34 5:3613 03/11/2010 Dell Marketing L.P. 1,994.44 53615 03/11/2010 Delta Wye Electric, Inc. 8,087,00 53614 03/11/2010 DeltaCare USA 394.48 53558 03/11/2010 DLT Solutions, Inc. 1,036.22 53559 03/11/2010 Eisel Enterprises, Inc. 403.73 53616 03/11/2010 Employment Development Dept. 1,474.12 53617 03/11/2010 Federal Express 5435 53560 03/11/2010 Firefold 119.04 53618 03/11/2010 Firemaster-Inland Region 2,102.07 53619 03/11/2010 Fry's Electronics 286.81 53587 03/11/2010 George Mardlcy Co., Inc. 488.87 53561 03/11/2010 Govern rnent Finance Officers 160.00 53588 0311112010 Habitat West Inc 760.00 53562 03/11/2010 Hall & Foreman, Inc 540.00 53620 03/11/2010 Harrington Industrial 2,248.68 53621 03/11/2010 Home Depot Credit Services 17.83 53563 03/11/2010 Infosend Inc. 12,339.50 53622 03/11/2010 Infosend Inc. 6,434.55 53564 03/11/2010 Jackson's Auto Supply - Napa 60.88 53623 03/11/2010 Jackson's Auto Supply - Napa 785.28 53565 03/11/2010 Jorge Lopez 66.00 53592 03/11/2010 Kim E. Bauerle 640.02 53566 03/11/2010 Konica Minolta Business 15/.60 53590 03/11/20107 La Strada Contracting 974.84 53567 03/11/2010 Leighton Consulting, Inc. 6,.5 /4.20 53624 03/11/2010 Liebert Cassidy Whitmore 4,543.30 53625 03/11/2010 LPR 85.00 53626 03/11/2010 Marina Landscape, Inc 841.47 53569 03/11/2010 Mc Fadden-Dale Hardware 467.66 53627 03/11/2010 Mc Master-Carr Supply Co. 51.70 53628 03/11/2010 Merchants Building Maintenance LLC 5,99313 53612 03/11/2010 Merging Communications, Inc. 140.00 53658 03/04/2010 Michael J. Beverage 306.90 53629 03/11/2010 Muzak LLC 65.25 53630 03/11/2010 MVVH Arnericas, Inc. 49,960.72 Highland Booster Stn Jan svcs 535 /0 03/11/2010 Mickey Petroleum Co 3,742.61 53631 03/11/2010 Norman A. Traub Associates 4,316.60 53632 03/11/2010 Occu-Med, Ltd. 238.00 53571 03/11/2010 Office Solutions 65.20 53572 03/11/2010 Orange Coast Petroleum Fquip. 527.44 53573 03/11/2010 Orange County Register 376.00 53633 03/11/2010 Parts Source Anaheim 67.21 53574 03/11/2010 Peggy McClure 525.00 53634 03/11/2010 PFT/Alexander Inc. 232.70 53609 03/11/2010 Platinum Consulting Group 9,776.25 53635 03/11/2010 Plumbers Depot Inc. 722.10 53636 03/11/2010 Plumbing And Industrial Supply 187.59 53637 03/11/2010 Praxair Distribution 85.56 53575 03/11/2010 Psornas & Associates 1,572.00 53638 03/11/2010 Pulte Homes 6118.00 53520 02/26/2010 Richard Gangloff III -50.50 53639 03/11/20:10 Sanders Paving, Inc. 1,350.00 53641 03/11/2010 SC Fuels 1,063.79 53640 03/1.1/2010 SCFC 450.00 53€14,2. 03/11/2010 Schuler Engineering Corp- 319,417.76 Highland Res prog pay Feb 53643 03/11/201.0 Selman Chevrolet Company 33.90 53591 03/11/2010 Shirnmick/]bayashi JV, Dlerner 791.34 53644 03/11/2010 Shred It USA Inc 72.15 53576 03/11/2010 Southern Calif Edison Co. 30.92 53645 03/11/2010 Southern Calif Edison Co_ 36.58 53577 03/11/2010 Southern Calif Gas Co. 13.98 53646 03/11/2010 Southern Calif Gas Co. 1,431.06 53647 0:3/11./2010 Southern Counties 3,704.12 53648 03/11/2010 5pinitar 315.00 53578 03/11/2010 Stacy bavol/Betty Cash 15€3.33 53649 03/11/2010 Stacy Bavol/Petty Cash 3732 53579 03/11/2010 Staples Business Advantage 414.72 53650 03/11/2010 Stater Bros. Markets 25.21 53651 03/11/2010 Stefano's Golden Baked Hams 59.50 53652 03/11/2010 Systems Source Inc 38.54 53580 03/11/2010 Tetra Tech, 15G 18,41955 53568 03/11/2010 The Lighthouse Inc. 86.38 53581 03/1.1/2010 Time Warner Cable 298.03 53582 03/11/2010 Transcat 1,035.53 53653 03/11/2010 Underground Service Alert 154.50 53583 03/11/2010 United Industries 238.36 53654 03/11/2010 United Industries 157.08 53655 03/11/2010 Valverde Construction, Inc. 1,500.00 53584 03/11/2010 Village Nurseries 14,58 53656 03/11/2010 Vision Service Plan 1,552.72 535€35 03/11/2010 Walters Wholesale Electric Co. 10.37 53586 03/11/2010 Wells Supply Co 2,917.83 53657 03/11/2010 Wells Supply Co 6,486.04 $597,819.03 March 11, 2010 CHECK NUMBERS: Void Check 53520 $ (50.50) Computer Checks 53538 -53657 $ 597,562.63 Manual Check 53658 $ 306.90 $ 597, 819.03 TOTAL OF CHECKS $ 597,819.03 PAYROLL NO. 4: (including ADP checks): District Manual Checks 4427 - 4435 $ 214,196.99 DISBURSEMENT TOTAL: $ 812,016.02 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MARCH 11, 2010 ITEM NO. 6.4 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: Yes Total Budget: $11.2M To: Board of Directors Cost Estimate: $11.2M Funding Source: Water Revenue Bond From: Ken Vecchiarelli, General Account No: 101-2700 Manager Job No: 200309 Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: No Prepared By: Joe Polimino, Project Engineer CEQA Compliance: MND Subject: Progress Payment No. 22 for the Highland Reservoir Replacement Project SUMMARY: Work is proceeding on schedule and on budget for the construction of the Highland Reservoir Replacement Project. Construction is approximately 79% complete. Submitted for consideration is construction Progress Payment No. 22. STAFF RECOMMENDATION: That the Board of Directors approve Progress Payment No. 22 in the net amount of $319,417.76 to Schuler Engineering Corporation and 10% retention of $35,490.86 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. DISCUSSION: In accordance with the contract documents, Schuler Engineering Corporation submitted a request for Progress Pay No. 22 for the period ending February 28, 2010. This progress pay request includes payment for continued installation of rebar, formwork and placing concrete for the remaining reservoir walls and columns. The contractor placed approximately 91 cubic yards of concrete into prepared corner wall and column forms. The contractor has also started placing shoring, beams, decking and rebar to prepare for the roof concrete installation and has installed more 36-inch inlet piping. The status of the construction contract with Schuler Engineering is as follows: . The current contract amount is $9,481,193.87 and 804 calendar days (includes $431,847.87 in authorized change orders and additional 74 calendar days with approved time extensions). . If approved, Progress Payment No. 22 is $354,908.62 (3.7% of the revised contract amount) less 10% retention of $35,490.86 for a net payment of $319,417.76. . If approved, total progress payments to date including retentions are $7,499,876.78 (79.1 % of the total revised contract amount). . As of February 28, 2010, 637 calendar days were used (79.2% of the revised contract calendar days). Staff and Carollo Engineers, the District's construction management consultant, reviewed the progress payment request and recommend payment. A copy of Progress Payment Request No. 22 is attached for your information. PRIOR RELEVANT BOARD ACTION(S): The Board has approved 21 progress payments to date, the most recent of which was approved on February 11, 2010. ATTACHMENTS: Name. Description: I ype: Schuler Engineering PPR 22 Highland Reservoir.pdf Schuler Engineering PPR22 Highland Reservoir Backup Material Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 YO RBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Highland Reservoir PROGRESS PAY REQUEST NO. 22 LOCATION Yorba Linda PROJECT NO, .l- PAGE 1 OF 1 PAGES 200309 CONTRACTOR Schuler Engineering - DATE Fe'b.28, 2010 ORIGINAL CONTRACT AMOUNT: $ 9,049,346.00 AUTHORIZED CHANGE ORDERS: $ 431,847.87 REVISED CONTRACT AMOUNT: $ 9,481,193.87 PROGRESS PAY ESTIMATE FOR PERIOD] February 1, 2010 TO February 28, 2010 PREVIOUS THIS MONTH TO DATE VALUE OF WORK COMPLETED $ 6,719,537.81 $ 354,908.62 $ 7.074,446.43 CHANGE ORDER WORK COMPLETED $ 425,430.35 $ 425,430.35 TOTAL VALUE OF WORK COMPLETED $ 7,144 968.16 $ 354,908.62 $ 7,499,876.78 LESS RETENTION 10% $ 748 987.68 LESS OTHER DEDUCTIONS AMOUNT DUE THIS ESTIMATE $ 6,749,889.10 LESS AMOUNT PREVIOUSLY PAID $ 6,430,471.34 BALANCE DUE THIS ESTIMATE $ 319,41716 a . rR n COMPLETION TIME 730 CALENDAR DAYS APPROVED TIME EXTENSIONS 74 CALENDAR DAYS TOTAL CONTRACT TIME 804 CALENDAR DAYS TIME EXPENDED TO DATE 637 CALENDAR DAYS TIME REMAINING 167 CALENDAR DAYS REQUESTED BY: DATE- SC LER ENGINEERING-CO CTOR Z7 Chas Wick APPROVED BY: DATE:° CAROLLO-OWNER'S- REPRESENTATIVE Brian Wilson APPROVED BY: _ DATE: - YLWD- OWNER Steve Conklin ITEM NO. 6.5 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: Yes Total Budget: $200,000 To: Board of Directors Cost Estimate: $96,000 Funding Source: Water Capital Reserves From: Ken Vecchiarelli, General Account No: 1-2700-0903 Manager Job No: 200903 Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: N/A Prepared By: Anthony Manzano, Senior CEQA Compliance: N/A Project Manager Subject: On-Call Services Contract with MWH Americas, Inc. (MWH) SUMMARY: MWH was previously retained for On-Call Services (services) under the General Manager's signing authority, to update the District's hydraulic model and evaluate pump-connection locations to enhance emergency response and fire protection. Additional work is required to complete updates to the hydraulic model and plans for the pump connections, which would take the total fee beyond the General Manager's signing authority. STAFF RECOMMENDATION: That the Board of Directors authorize approval of On-Call Services contract Amendment No. 2 with MWH Americas, Inc. for a fee increase not to exceed $47,240, resulting in a total fee of $95,760. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee discussed this item at its meeting on March 4, 2010 and supports staff recommendation. DISCUSSION: On May 7, 2009, the District entered into a Professional Services Agreement with MWH to provide on-call support services to evaluate and update the existing hydraulic model and evaluate the planning of potential inter zonal emergency connections, for a fee not to exceed $15,000. On August 5, 2009, based on the progress and the need for further work on these items, Amendment No. 1 to the PSA was approved by the General Manager for $33,000, increasing the limit to $48,000. Substantial progress was made on these items between District and MWH staff. However, additional work is necessary to take these to completion. The improved water system hydraulic model, converted from its existing format to the District's GIS system, will allow the District to simulate emergency response alternatives before and during events. The emergency pump connection points will allow the District to utilize its portable pumps to deliver water faster and more efficiently from lower to upper pressure zones, for which MWH is completing design plans. District staff will assist with the GIS modifications and the hydraulic analysis to minimize costs. At the District's request, MWH provided a proposal for the above services, a copy of which is attached. Staff reviewed the proposal for $47,240 and recommends approval. PRIOR RELEVANT BOARD ACTION(S): None. ATTACHMENTS: Name. Desc it uon. a Yl e. MWM_On-Call =Services _Proposal _02-15-2010.pdf MWH On-Call Services Contract Proposal Backup Material Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 -.1 H BURIPP E A .BETTER WORLD February 15, 2010 Mr. Steve Conklin Yorba Linda Water District 1717 E. Miraloma Avenue Placentia, CA 92870-6785 Subject: On-Call Service Contract Dear Steve: MWH is pleased to continue support to the Yorba Linda Water District on important projects related to emergency response and fire protection. The District is improving responsivness to emergencies by developing a hydraulic model and designing emergency pump locations. The model will allow the District to simulate emergency response alternatives before and during an event. The emergency pump locations will allow the District to utilize their portable pumps to deliver water from the lower pressure zones to the upper pressure zones. MWH will work with District staff to complete both these projects. In addition, MWH will provide support to the District with other hydraulic analysis for planning purposes. These services will be part of our existing on-call contract with the District. Attached is the scope of services to perform the four tasks we discussed at our meeting on February 4, 2010. All work will be performed on a time and materials basis, in accordance with our contract. Please review the attached scope of services. We estimate an additional budget of $47,240 will be required to complete these services. MWH can begin immediately on supporting the District with these tasks. Please provide your written authorization if this is acceptable. Sincerely, Michael Moore John Robinson Project Manager !Vice President 618 Michillinda Ave. r:_._ 626 796 9141 Suite 20FAx 626 568 61 u" Amadia. GA 91007 YdYdW.I7 whuional.corr, PROPOSED SCOPE OF SERVICES Task 1 Pump Connection Bid Documents MWH will prepare bid documents for the emergency portable pump connections. The pump connection locations were identified by operations staff and verified with a hydraulic analysis. The pump connections will be at the following locations. 1. Trentino Drive 2. Fairmont Reservoir 3. Aviemore Drive The plans will be revised to be bid documents in accordance with District standards. Technical specifications will be prepared for the project- The District wifl incorporate the technical specifications into the District standard front end documents. It is assumed the District will provide all reprographic and copying for the bid documents. No bid or construction support services are assumed at this time. Task 2 Fairmont Vault Modifications The Fairmont PRV vault was studied for modification. Drawings were prepared for the modification. We understand the District will postpone the improvements until next fiscal year due to budget constraints. As such, the final modifications to the drawings were not included in the on-call contract. Task 3 Hydraulic Analysis The existing hydraulic model will be used to perform specific analysis for evaluating capital projects. MWH will facilitate a workshop with District staff to perform the hydraulic analysis. Task 4 Hydraulic Model Conversion MWH will assist District staff in developing a hydraulic model in Info Water by MWH Soft using the District's GIS. The first phase of the project will consist of reviewing the GIS data and working with District staff to clean and filter the pipe attributes. MWH will prepare a plan for District staff to modify the geodatabase and provide controls for the pumps and valves. The next phase will be a verification process to ensure all elements have unique ID's. Duplicate nodes will be removed and pipe connectivity will be verified. MWH will identify the elements to be modified by the District. MWH will hold a meeting to review the data to be cleaned. After the geodatabase is cleaned, MWH staff will import the into the new model software. District staff will be used to input controls for the pump, valves and reservoirs. The District will provide a digital terrain map for importing the elevations. Demands will be allocated from nodes based on billing data provided by the District. The MWH staff and District staff will work closely with each other to perform all tasks. All cost will be billed on a time and materials basis. The budget is an estimate based on District staff assistance. Work will stop when the budget has been expended and MWH will not proceed further until written authorization is provided by the District. The budget does not contain software costs to upgrade the existing model to InfoWater. Proposed Budget Project Sr Labor Task Principal Manager Professional Designer Admin Hours OaC Budget Pump Connection 2 24 32 20 8 86 350 $ 12,860 Fairmont Vault 4 16 20 $ 2,860 Hydraulic analysis 12 16 28 100 $ 5,160 Model Conversion 16 30 1.20 166 400 $ 26,3£0 Total $ 47,240 ITEM NO. 6.6 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: Yes Total Budget: $2M To: Board of Directors Cost Estimate: $79,820 (Wellhead Design) Funding Source: Water Capital Reserves From: Ken Vecchiarelli, General Account No: 101-2700 Manager Job No: 200711 Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: No Prepared By: Anthony Manzano, Senior CEQA Compliance: Exempt Project Manager Subject: Engineering Services for Wellhead Equipping of YLWD Well No. 20 SUMMARY: Staff issued a Request for Proposals for the preparation of engineering design, bid support and construction management services for Wellhead Equipping of Well No. 20. The District received three consultant proposals. Following evaluation, staff recommends award to Civiltec Engineering Inc. (Civiltec) for a fee not to exceed $79,820. STAFF RECOMMENDATION: That the Board of Directors authorize execution of a Professional Services Agreement with Civiltec for a fee not to exceed $79,820, to provide engineering design, bid support and construction management services for Wellhead Equipping of Well No. 20. COMMITTEE RECOMMENDATION: The Planning-Engineering-Operations Committee discussed this item at its meeting on March 4, 2010 and supports staff recommendation. DISCUSSION: Staff prepared a Request for Proposal to provide consulting services for engineering design, bid support and construction management services for Wellhead Equipping of Well No. 20. Staff solicited proposals from five consulting firms experienced in this field. Three consultants submitted a proposal. The District's review team ranked and scored the proposals based on experience, content, and understanding of the Project. Following the technical evaluation and ranking, separate fee envelopes, with fees for each proposal, were opened by staff. Results of the ranking and the proposed fee for each are as follows: Firm Evaluation Score Fee Civiltec Engineering, Inc. 12.81 $79,820 Bureau Veritas NA, Inc. 13.08 $135,820 SA Associates 12.77 $109,000 Although Bureau Veritas NA, Inc. (BVNA) has the highest score, Civiltec's score was very close with a fee of $56,000 less than BVNA. The review team had a conference call with Civiltec to discuss scope and fee. Civiltec's Vice President and Project Manager confirmed that they are fully prepared and staffed to provide the services proposed at the indicated fee. With this information in hand, the significantly lower fee, and the relatively close score, staff recommends award to Civiltec Engineering Inc. PRIOR RELEVANT BOARD ACTION(S): 1. In August 2008, the Board of Directors approved a Professional Services Agreement with Camp Dresser & McGee in the amount of $179,469 to provide hydrogeologic services to evaluate two potential well sites and provide a well drilling design, specifications and inspection services. 2. In January 2010, the Board of Directors authorized execution of a Drilling Contract for Well No. 20 to Bakersfield Well & Pump Company, in the amount of $367,291. 3. In January 2010, the Board of Directors authorized execution of a License Agreement with the Orange County Water District, to discharge Well 20 blow-off water into the Warner Basin Complex. Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 ITEM NO. 6.7 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: N/A To: Board of Directors Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Stephen Parker, Finance Dept: Finance Director Reviewed by Legal: N/A Prepared By: Sandi Van Etten, Senior CEQA Compliance: N/A Accountant Subject: Quarterly Investment Report for December 2009 SUMMARY: Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. STAFF RECOMMENDATION: That the Board of Directors receive and file the investment report for the quarter ending December 31, 2009. COMMITTEE RECOMMENDATION: The Finance-Accounting Committee has reviewed and discussed the Investment Report and supports staff's recommendation to receive and file the report. DISCUSSION: Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. Staff is submitting the December 2009 Quarterly Investment Report to receive and file.The average portfolio yield for total investments excluding Wells Capital is 0.28% compared to the December 2008 yield of 0.76%. The average portfolio yield including Wells Capital is .44%. The average number of days to maturity as of December 31, 2009 equaled 122 days, and the average term for the portfolio totaled 54 days. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors receives the Investment Report on a quarterly basis. ATTACHMENTS: Na111e: Description: Type: Invst Rpt 12-09.xls Investment Rpt 12-09 Backup Material Agenda 2-8 backup-Dec.doc Backup Backup Material Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 Yorba Linda Water District Investment Portfolio Report December 31, 2009 Market % Percent Investment Maturity Value Cost of Total Institution Yield Date Date Cash & Checking Accounts: $ 567,689 $ 567,689 Wells Fargo Bank N/A 1,200 1,200 Imprest Cash $ 568,889 $ 568,889 1.42% Total 0.00% Money Market Accounts: $ 828,789 $ 828,789 Wells Fargo Money Market 0.29% N/A - - Wells Fargo MM/Annexation $ 828,789 $ 828,789 2.07% Total 0.29% $ 1,397,678 $ 1,397,678 3.49% Sub-total 0.17% California Asset Mgmt. Program: $ 5,099,230 $ 5,099,230 12.73% California Asset Mgmt. Program 0.25% N/A Money Market Account: $ 15,318,509 $ 15,318,509 US Bank 2008 Revenue Bond 0.30% 4 4 US Bank 2003 Revenue Bond 0.27% N/A $ 15,318,513 $ 15,318,513 38.24% 0.30% $ 21,815,421 $ 21,815,421 54.46% Sub Total Investments 0.28% Individual Management Account: $ 18,259,565 $ 18,239,667 45.54% Wells Capital Management 0.63% N/A $ 40,074,986 $ 40,055,088 100% Total Investments 0.44% 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. VOW F-462-X Sandi Van Etten, Senior Accountant 12/31/2009 Investment Report Summary Below is a chart summarizing the yields as well as terms and maturities for the month of December 2009. Avg. Portfolio Avg. Portfolio # of Avg. Term Month Yield Without Yield With Days to of Portfolio of 2009 Wells Capital Wells Capital Maturity in Days December 0.28% 0.44% 122 54 Below is a chart comparing operating fund interest for current and prior fiscal years. Actual Interest 12/31/08 12/31/09 Monthly, Operating Fund $ 518 $ 3,724 Year-to-Date, Operating Fund $ 4,378 $ 20,411 Budget 2008/2009 2009/2010 Interest Budget, Operating Fund, December YTD $32,250 $3,750 Interest Budget, Operating Fund, Annual $64,500 $7,500 Interest earned on investments is recorded in the Fund that owns the investment. Investment Summary Comparison The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: Fund Description Balance 12/31/09 Annexation $4,603,409 11.47% Water Operating 4,225,349 10.53% Water R&R 2,056,052 5.12% Water Capital Projects 231,204 0.58% Restricted for Debt Service 1,067,211 2.66% COP Revenue Bond 2003 4 0.00% COP Revenue Bond 2008 15,318,509 38.18% Sewer Operating 1,294,523 3.23% Sewer R&R 463,119 1.15% Sewer Capital Projects 189,400 0.47% ID 1 3,173, 451 7.91% ID2 7,501,759 18.70% $40,123,990 100.00% ITEM NO. 7.1 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: N/A Total Budget: N/A To: Board of Directors Cost Estimate: N/A Funding Source: N/A From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Annie Alexander, Executive CEQA Compliance: N/A Secretary Subject: Appointment of Corporate Officer SUMMARY: Pursuant to the Board of Directors Rules for Organization and Procedure (Resolution No. 07-16), all corporate officers are to be elected or appointed on an annual basis. With the hiring of Stephen Parker as the permanent Finance Director, a new Auditor needs to be appointed for the District. STAFF RECOMMENDATION: That the Board of Directors appoint Stephen Parker, Finance Director, as Auditor for the Yorba Linda Water District. DISCUSSION: The officers of the District are customarily elected or appointed on an annual basis. On November 25, 2009, the Board of Directors appointed Cindy Navaroli, Interim Finance Director, as Interim Auditor for the District. With the hiring of Stephen Parker as the permanent Finance Director, a new Auditor needs to be appointed. The Auditor performs all duties as set forth in the County Water Districts Law (Water Code, Section 30000 et seq.), the Board of Directors Rules for Organization and Procedure, and as imposed by the Board of Directors. There is no additional compensation for serving as the Auditor if the individual is an employee of the District. PRIOR RELEVANT BOARD ACTION(S): On November 25, 2009, the Board of Directors elected William R. Mills as President, Michael J. Beverage as Vice President and appointed the following as corporate officers of the District: Ken Vecchiarelli, Secretary Pat Grady, Assistant Secretary Cindy Navaroli, Interim Auditor Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/RC 5-0 ITEM NO. 7.2 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: N/A Total Budget: N/A To: Board of Directors Cost Estimate: N/A Funding Source: N/A From: Ken Vecchiarelli, General Manager Account No: N/A Job No: N/A Presented By: Stephen Parker, Finance Director Dept: Finance Reviewed by Legal: Yes Prepared By: Stephen Parker, Finance Director CEQA Compliance: N/A Subject: Revised Public Investment Policy SUMMARY: Staff was instructed to provide the Board with a revised investment policy for consideration which would would allow the District to invest in CalTRUST. STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Resciding Resolution No. 09-01. COMMITTEE RECOMMENDATION: The Finance-Accounting Commitee discussed this matter at its meeting held February 17, 2010 and supports staff recommendation. DISCUSSION: The investment policy is being revised in a very limited fashion. The only changes from the District's current investment policy are adding language at Section 5 (j) and Section 8 to formally allow the District to invest in CalTRUST, and to allow investments of more than $1,000,000 without specific Board approval in the future. PRIOR RELEVANT BOARD ACTION(S): The District's current investment policy was adopted by Resolution No. 09-01 on January 22, 2009. ATTACHMENTS: Name Descriptlow Type: Resolution 10-03.doc Resolution No. 10-03 Resolution Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 JS/RC 5-0 Roll Call RESOLUTION 10-03 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING FORTH PUBLIC FUNDS INVESTMENT POLICY AND RESCINDING RESOLUTION NO. 09-01 WHEREAS, California Government Code (CGC) Section 53600, et seq. sets forth guidelines for the investment of public funds and WHEREAS, the current District's Investment Policy was adopted by Resolution No. 09- 01 on January 22, 2009; and WHEREAS, the District is in possession of public funds that are not required for immediate expenditure, and are available for investment; and WHEREAS, a policy setting forth guidelines for the investment of said funds is necessary for compliance with the principles of sound financial management; and WHEREAS, the Board of Directors of the Yorba Linda Water District desire to adopt the Investment Policy set forth herein. NOW, THEREFORE, BE IT RESOLVED by Board of Directors of the Yorba Linda Water District as follows: Section 1: Public funds held for investment by the District may be categorized as follows: a) Those funds that are allocated for immediate expenditure on District operations as authorized by the Board of Directors at their bimonthly meetings; b) Those funds that are allocated for use in an intermediate time frame, such as budgeted purchases, that have not been delivered; c) Those funds that are allocated for future use which do not fall into the above categories. This policy sets forth guidelines for funds that are identified as "available for investment." Section 2: Delegated representative and standards and procedures for the operation of the investment program as follows: a) The authority of the Board of Directors to invest funds is derived from Section 53607 of the CGC. The responsibility to invest, reinvest, sell or exchange securities is hereby delegated to the General Manager or Finance Director for a period of one year. The Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 1 Board of Directors may renew the delegation of authority pursuant to state law each year. b) The standard of prudence to be used by the designated representative shall be the "prudent investor" standard and shall be applied in the contest of managing the overall portfolio. The meaning of the standard of prudent investor, means investment, reinvestment, purchasing, acquiring, exchanging, selling or managing public funds shall be made with care, skill, prudence and diligence, under circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the agency, which a prudent person, acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the District. Section 3: The General Manager or his/her designated representative shall maintain a cash flow analysis for projecting cash available for investments. All funds not required for immediate or intermediate use may be invested in accordance with this policy. The total funds invested at any time pursuant to this policy will constitute the District's "investment portfolio". Section 4: Priorities regarding the investment of District held public funds are: a) The safety of funds. Safety of principal is the foremost objective of the investment portfolio. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. b) The maintenance of sufficient liquidity to meet all operating requirements that may be reasonably anticipated. Securities should mature concurrent with cash needs to meet anticipated demands. c) The investment portfolio shall be designed with the objective of attaining the best yield or returns on investments, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives. Section 5: The District may invest funds that are available for direct investment in the following categories: a) Banks or Savings and Loans Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 2 Cash will be deposited only in Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation (FSLIC) insured institutions or fully collateralized certificates of deposit. Collateral for a given investment must be 110 percent of principal for government securities collateral and 150 percent of principal for first mortgage collateral. The institution must maintain a net worth to asset ratio of at least 3.0 percent, and a positive earnings record. The bank or savings and loan must be located in California. The maximum maturity shall be five years. No limit will be place on the percentage total invested in this category. b) The State Local Agency Investment Fund (LAIF). The amounts deposited in this category are limited to $10 million plus bond proceeds. No limit will be placed on the percentage total in this category. C) Orange County Treasurer's Commingled Investment Pool - Government Code Section 53684 The amounts deposited in this category are limited to $10 million plus bond proceeds. No limit will be placed on the percentage total in this category. d) California Asset Management Program The amounts deposited in this category shall be limited to bond proceeds and are to be invested for the purpose of arbitrage management only. Proceeds may be invested in the Treasury Portfolio and/or the Money Market Portfolio. No limit will be placed on the percentage total in this category. e) Treasury Bills, Notes and Bonds - Government Code Section 53601(b-d) The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. The maximum maturity shall be limited to five years. No limit will be placed on the percentage total invested in this category. f) Obligations Issued by Federal Agencies and U.S. Government Sponsored Enterprises - Government Code Section 53601 (f) Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 3 The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. Examples of these securities include Federal National Mortgage Association, Federal Land Bank and Federal Home Loan Bank. The maximum maturity shall be limited to five years and the maximum investment of 50 percent of the investment portfolio in the aggregate. g) Corporate Bond - Government Code Section 53601(k) The District will require electronic delivery of these securities to an acceptable safekeeping account in the District's name, which must be properly insured. The corporation must be domestic, the notes must be domestic and the notes must be issued in the United States. The corporation must be domestic and the notes must be domestic and the notes must be issued in the United States. The corporation must be rated A or its equivalent or better by a nationally recognized rating service. The maximum maturity is limited to five years and the maximum percentage allowable for investment is 30 percent of the investment portfolio in the aggregate. h) Banker's Acceptance - Government Code Section 53601(g) The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. The maximum term may not exceed 180 days and the maximum percentage allowable for investment is 10 percent of the portfolio in the aggregate. i) Commercial Paper - Government Code Section 53601(h) The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. Commercial paper rated the highest ranking or of the highest letter and number ratings as provided for by a nationally recognized statistical-rating organization. The entity that issues the commercial paper shall meet two sets of criteria: (1) The corporation shall be organized and operating within the United States, shall have total assets in excess of five hundred million dollars ($500,000,000), and shall issue debt, other than commercial paper, if any, that is rated A or higher by a nationally recognized statistical-rating organization. (2) The corporation shall be organized within the United States as a special purpose corporation, trust, or limited liability company, has program wide credit enhancements including, but not limited to, over Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 4 collateral ization, letters of credit, or surety bond; has commercial paper that is rated "a-1" or higher, or equivalent by a nationally recognized statistical-rating organization. Eligible commercial paper may not exceed 270 days' maturity and may not represent more than the 25 percent of the investment portfolio in the aggregate. j) Investment Trust of California (the CaITRUST JPA pool) - Government Code Section 53601(p) The amounts deposited in this category are limited to $10 million plus bond proceeds. No limit will be placed on the percentage total in this category. k) Money Market Funds Shares of a qualified money market fund, as defined in CGC section 53601, must meet the criteria described therein. Section 6: All investments of sums of less than $100,000 do not require approval of the Board of Directors or need to be collateralized. Such investments, however, must be made in saving institutions covered by federal deposit insurance. Section 7: Investment of sums greater than $100,000 and less than $1,000,000 in a single institution is authorized in institutions that comply with the following parameters: a) Collateral requirements as set forth in Section 5, (a) herein; b) Institution established as a business in California for a minimum of three years; C) Must show a profit for the most recent two consecutive years; d) A capital ratio of six percent for banks, and five percent for savings & loans; e) No more than three percent foreclosures; f) Financial rating of "excellent" or "superior". Section 8: All investments greater than $1,000,000 in one institution, with exception of LAIF, Investment Trust of California (the CaITRUST JPA pool) and Orange County Treasurer's Commingled Investment Pool (OCIP), require approval of the Board of Directors. Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 5 Section 9: When the District uses the services of a broker/dealer to purchase securities, they shall be selected for credit worthiness. These may include "primary" dealers or regional dealers. Each security purchased through a broker/dealer shall be registered in the name of Yorba Linda Water District. No deposit of cash and/or securities shall be made by the broker/dealer except in a qualified public depository as established by state law and Section 3(1) of this resolution. Before a broker/dealer is used, they are subject to investigation and approval by the General Manager or the designated representative and must submit the following: a) Certification of having read and understood this investment policy resolution and agreeing to comply with the District's investment policy; b) Proof of National Association of Security Dealers certification and state registration; C) Compliance with federal capital adequacy regulations and provide documentation of financial solvency; d) Provide audited financial statements within 120 days of fiscal year end; e) Provide similar services to other public-sector clients. Section 10: Policy on repurchase and reverse repurchase agreements and derivative products: a) The District staff is not authorized to initiate investments in repurchase or reverse repurchase agreements or "plain vanilla OTC" and/or "more complex over the counter (OTC) derivative products," as defined below, however, staff is authorized to deposit in LAIF provided LAIF invests no more than ten percent of their total portfolio in repurchase or reverse repurchase agreements and does not use derivative products defined below. b) A "plain vanilla OTC" derivative product is defined by the U.S. General Accounting Office as a financial instrument whose market value is derived from a reference rate, index, or a value of an underlying asset. OTC derivatives are privately negotiated contracts and are not traded on organized exchanges. c) A "more complex OTC" derivative product is defined by the U.S. General Accounting Office to have at least one of the following characteristics: Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 6 1. Their prices tend to be difficult to obtain, because they are often available from only a few dealers; 2. The payments required by the derivative are calculated on the basis of more than one interest, rate, currency, asset or other factor; 3. The derivative contract has terms that are not determined until some future Date; 4. The contract involves a term that acts as a multiplier or increases the leverage of the rate(s) used to compute payments; 5. The contract may entail potentially unlimited risk; Section 11: The General Manager or his designated representative shall submit a monthly investment portfolio report through the Finance-Accounting Committee to the Board of Directors. Additionally, the General Manager or his designated representative shall submit a comprehensive report for Board approval each quarter. This report shall include but not be limited to.. a) A list of the previous month's investments; b) Institutions where investments were placed; C) Dates of transactions; d) Dates of maturity; e) Interest rates on said investments; f) Investment categories' percent of total portfolio. Section 12: Ethics and Conflicts of Interest All officials, staff members and consultants who make or participate in making investment decisions on behalf of the District, will refrain from personal business activity that could conflict with the execution of the investment function or which may impair the ability to make impartial investment decisions. Officials, staff members, and consultants will disclose to the General Manager any financial interests with a financial institution, provider, dealer or broker conducting business with the District. Officials, staff members and consultants will further disclose any personal Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 7 financial positions that could be related to the performance of the District's portfolios; Section 13: Safekeeping and Custody All cash and securities in the District's Investment portfolio, including those that are being managed by the delegated representative shall be held in the District's name by a third party bank trust department, acting as agent for the District under the terms of a custody agreement executed by the bank and the District. All securities will be received and delivered using delivery-versus payment procedures. The District's safekeeping agent will only release payment for a security after the security has been properly delivered. The only exception to the foregoing shall be depository accounts and securities purchases made with (i) local government investment pools, and (ii) money market mutual funds, since the purchased securities are not deliverable. Section 14: Maximum Securities To the extent possible, the District will attempt to match investments with anticipated cash flow requirements. Pursuant to state law, no investment shall have a maturity in excess of five years. That Resolution No. 09-01 is hereby rescinded immediately upon adoption of this Resolution. PASSED AND ADOPTED this 11th day of March, 2010 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: William R. Mills, President Yorba Linda Water District Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 8 ATTEST: Ken Vecchiarelli, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. McCormick, Kidman & Behrens Resolution No. 10-03 Setting Forth Public Funds Investment Policy and Rescinding Resolution No. 09-01 9 ITEM NO. 7.3 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: N/A Total Budget: N/A To: Board of Directors Cost Estimate: N/A Funding Source: N/A From: Ken Vecchiarelli, General Account No: N/A Manager Job No: N/A Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: N/A Prepared By: Annie Alexander, Executive CEQA Compliance: N/A Secretary Subject: Nomination of Joan C. Finnegan as President of ACWA/JPIA SUMMARY: The Municipal Water District of Orange County (MWDOC) has requested that the Board consider adopting a resolution concurring with their nomination of Joan Finnegan as President of the Association of California Water Agencies/Joint Powers Insurance Authority (ACWA/JPIA). STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 10-04 Concurring in Nomination of Joan C. Finnegan as President of ACWA/JPIA. DISCUSSION: The District received a letter from MWDOC requesting that the Board consider adoption of a resolution concurring with their nomination of Joan Finnegan as President of ACWA/JPIA. Elections for this opening will take place at the ACWA/JPIA Board of Directors meeting at the spring conference on May 3, 2010 in Monterey, CA. Concurring nominations must be delivered to the ACWA/JPIA office by 4:30 p.m. on March 19, 2010. PRIOR RELEVANT BOARD ACTION(S): The Board has adopted several resolutions of this nature in the past including Resolution Nos. 07- 03, 05-10, and 01-02, all concurring with the nomination of Joan Finnegan for various offices on the ACWA/JPIA Executive Committee. ATTACHMENTS: Na ii T Y; JFinnegan Nomination.W Correspondence Backup Material Resolution 10-04.doc Resolution No. 10-04 Resolution Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 Roll Call MUNICIPAL WATER 0 DISTRICT OF ORANGE COUNTY Street Address: February 10, 2010 18700 Ward Street Fountain Valley, California 92708 Mailing Address: P.O. Box 20895 Fountain Valley, CA 92728-0895 ACWA/JPIA Agencies (714) 963-3058 Fax: (714) 964-9389 Re: ACWA/JPIA President Nominations Joan C. Finnegan Dear ACWA/JPIA member: President Jeffery M. Thomas Vice President Municipal Water District of Orange County (MWDOC) recently received Brett R.Barbre notification of the openings on the ACWA/JPIA Executive Committee. Director Elections for this opening will take place at the JPIA's Board of Wayne Clark Director Director's meeting at the spring conference on May 3, 2010, in D Larry D. Dick Monterey. MWDOC has nominated Joan Finnegan, MWDOC Director President, to fill the ACWA/JPIA President seat. We hope your Susan Hinman organization will concur with MWDOC's nomination. Director Ed Royce, Sr. Director As a member of ACWA/JPIA, Municipal Water District of Orange Kevin P. Hunt, P.E. County requests your Board submit a resolution of support concurring General Manager with MWDOC's nomination for Joan Finnegan as President of _ ACWA/JPIA. A sample of this Resolution is attached. As you can see MFl„,. from the attached background information on Joan Finnegan, she is City of Brea extremely well qualified for this position. City of Buena Park East Orange County Water District Due to the timeliness of these nominations, we appreciate your El Toro Water Dislrict immediate attention. All nominations must reach the JPIA office at Emerald Bay Service District 5620 Birdcage Street, Suite 200, Citrus Heights, CA, 95610-7632 by City of Fountain Valley 4:30 p.m. on Friday, March 19, 2010. Please send to the attention of City of Garden Grove Golden statewalerco. Sylvia Robinson, Publications & Web Editor. If you have any City of Huntington Beach questions, Sylvia can be reached at 916/535-7500. Irvine Ranch Water District Laguna Beach County Water District Thank you for your consideration. City of La Habra City of La Palma Mesa Consolidated Water District Moulton Niguel Water District Sincerely, City of Newport Beach City of Orange Orange County Water District City of San Clemente City of San Juan Capistrano Santa Margarita Water District City of Seal Beach Jeffery M. Thomas Serrano Water District Vice President South Coast Water District Trabuco Canyon Water District City of Tustin City of Westminster Yorba Linda Water District I I \ 258 Sherwood Street Costa Mesa, CA 92627 (949) 548-3690 (Home) (714) 963-3058 (District) ~ Flu ° [i i I ic CMunicipal Water District of Orange County, Director 2001 - present (Pres. 2003 Representing Costa Mesa, Huntington Beach, & 2010; Vice Pres. 2001-02 & Seal Beach & a small portion of Newport Beach 2008-09) Coastal Municipal Water District, Director 1986-2000 (Pres. 1990-92) ACWA/Joint Powers Insurance Authority, Director 1988-present (Vice Pres. 2006 - present) Water Advisory Committee of Orange County (WACO) 1986-present (Pres. 1991) Independent Special Districts of Orange County (ISDOC) 1974-present (Treas. & Sec.) Orange County Water Association 1966-present (Chair 1989) Center for Demographic Research/Cal State Fullerton 1998-present LAFCO Advisory Committee 1997-2005 Orange County Republican Women Federated 2006-present (Treas.) Association of California Water Agencies (ACWA) 2006-present (Board) American Water Works Association 1985-present Associated Koi Clubs of America 1980- present (Charter Member, Past Chair, Treas. & Sec.) Southern California Koi Club 1976-present, Past Chair Orange County ZNA Chapter, Founder 1978-present ABWA Woman of the Year (Newport Harbor Chapter) 1973 Orange County Grand Jury 1980-81 (Secretary) Orange County Grand Juror's Association 1981-present Costa Mesa Woman of the Year 1980 Assemblyman Ken Maddox's Woman of the Year 2005 Listed in Who's Who in the West 1985-86; Who's Who in Orange County; & National Register of Who's Who in Executives & Professionals 2004-2005 p(-I icl cc Mesa Consolidated Water District (211/2 years) Office Manager/Auditor In charge of customer service, investments and accounting for a progressive mid-size water district serving the City of Costa Mesa and surrounding county areas. 1'( olio I Married to Robert H. Finnegan since 1951. Two daughters, four grandchildren. RESOLUTION NO. 1872 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY NOMINATING ITS ACWA/JPIA BOARD MEMBER JOAN C. FINNEGAN TO THE OFFICE OF PRESIDENT OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES JOINT POWERS INSURANCE AUTHORITY ("ACWA/JPIA") WHEREAS, Municipal Water District of Orange County (MWDOC) is a member district of the ACWA/JPIA that participates in all three of its Programs: Liability, Property, and Workers' Compensation; and WHEREAS, the Bylaws of the ACWA/JPIA provide that in order for a nomination to be made to ACWA/JPIA's Office of President, the member district must place into nomination its member of the ACWA/JPIA Board of Directors for such open position; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Municipal Water District of Orange County, that its member of the ACWA/JPIA Board of Directors, Joan C. Finngan, is hereby nominated as a candidate for the Office of President of ACWA/JPIA for the election to be held on May 3, 2010. BE IT FURTHER RESOLVED that the ACWA/JPIA staff is hereby requested, upon receipt of the formal concurrence of five other member districts to effect such nomination. BE IT FURTHER RESOLVED that the District Secretary is hereby directed to transmit a certified copy of this resolution to the ACWA/JPIA at 5620 Birdcage Street, Suite 200, Citrus Heights, California 95610-7631, forthwith. Said Resolution was adopted, on roll call, by the following vote: AYES: Directors Clark, Dick, Finnegan, Hinman, Royce & Thomas NOES: None ABSTAIN: None ABSENT: Director Barbre HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution No. 1872 adopted by the Board of Directors of Municipal Water District of Orange County at its meeting of February 10, 2010. Maribeth Goldsby, Secretary Municipal Water District of Orange Cou ty RESOLUTION 10-04 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT CONCURRING IN NOMINATION OF JOAN C. FINNEGAN AS PRESIDENT OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES/ JOINT POWERS INSURANCE AUTHORITY (ACWA/JPIA) WHEREAS, this District is a member district of ACWA/JPIA; and WHEREAS, the Bylaws of the ACWA/JPIA provide that in order for a nomination to be made to ACWA/JPIA's Office of President, five member districts must concur with the nominating district; and WHEREAS, the Municipal Water District of Orange County has requested this District concur in its nomination of Joan C. Finnegan of the ACWA/JPIA Board of Directors to the Office of President to the ACWA/JPIA. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District that this District concur with the nomination of Joan C. Finnegan of the Municipal Water District of Orange County to the Office of President of ACWA/JPIA. BE IT FURTHER RESOLVED that the District Secretary is hereby directed to transmit a certified copy of this resolution to the ACWA/JPIA at 5620 Birdcage Street, Suite 200, Citrus Heights, California, 95610-7632, forthwith. PASSED AND ADOPTED this 11th day of March, 2010 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: William R. Mills, President Yorba Linda Water District ATTEST: Ken Vecchiarelli, Secretary Yorba Linda Water District Resolution No. 10-04 Concurring in Nomination of Joan C. Finnegan as President of ACWA/JPIA 1 ITEM NO. 7.4 AGENDA REPORT Meeting Date: March 11, 2010 Budgeted: Yes Total Budget: $100,000 To: Board of Directors Cost Estimate: $77,005 Funding Source: All Water Funds From: Ken Vecchiarelli, General Account No: 1-3010-0780-00 Manager Presented By: Ken Vecchiarelli, General Dept: Finance Manager Reviewed by Legal: N/A Prepared By: Stephen Parker, Finance CEQA Compliance: N/A Director Subject: Preparation of a Cost of Service and Water Rate Study SUMMARY: In September 2009, the Board considered an inclining block water rate structure, but elected to continue with the flat rate structure with consideration in the future for an inclining rate structure that could be applied to multiple customer classes fairly. The Board has recently discussed moving to either an inclining block rate structure or a budget based tiered rate structure to encourage efficiency and conservation, while equitably meeting the revenue requirements for the respective customer classes. With this in mind, the District budgeted for a Cost of Service and Water Rate Study that would be required in order to switch rate structures. For the preparation of a Cost of Service and Water Rate Study, staff issued a Request for Proposals and received proposals for the project. Following an evaluation and presentation from the top two consultants, Staff recommends award to Raftelis Financial Consultants for a fee not to exceed $77,005. STAFF RECOMMENDATION: That the Board of Directors authorize The General Manager to execute a Professional Services Agreement with Raftelis Financial Consultants in the amount of $77,005 to conduct a Cost of Service and Water Rate Study. DISCUSSION: Staff prepared a Request for Proposal for a Cost of Service and Water Rate Study and solicited numerous financial consulting firms experienced in this field. Six replied and submitted a proposal. The District's review team ranked and scored the proposals based on experience, content, and understanding of the project. Below are the results of the ranking. Consulting Firm Name Cost - Budget Based Cost - Inclined Block Overall Ranking Raftelis Financial Consultants $ 77,005 $ 52,100 1 Red Oak Consultants $ 69,702 Included 2 H D R Inc. $ 99,147 $ 79,176 3 Black & Veatch $ 83,060 $ 64,460 3 Bucknam & Associates $ 60,800 $ 39,500 4 Willdan Financial Services $ 69,998 $ 58,248 5 Staff requested that the top two firms make a presentation to Staff, specifically highlighting the inclining water and water budget models that would be a deliverable to the District at the end of the study. Both Raftelis Financial Consultants and Red Oak Consulting came with key members of their project team and made a presentation. After those presentations and a review of sample rate studies from both firms, the District's review team met again to select a firm to recommend to the Board. While it was agreed that both firms would do a good job, the deciding factor was the financial model and the learning curve to utilize the model in-house for further analysis. For this reason, Staff recommends award to Raftelis Financial Consultants. PRIOR RELEVANT BOARD ACTION(S): No prior relevant Board Action on this subject. Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 See minutes for revised motion. ITEM NO. 8.3 AGENDA REPORT Meeting Date: March 11, 2010 Subject: General Manager's Report . California's Comprehensive Water Package International Forum - March 12, 2010 . 2010 Children's Water Education Festival - March 25, 2010 ATTACHMENTS: Name: Description: Type: Water_Festival.pdf Event Flyer Backup Material Water Package Forum.pdf Event Flyer Backup Material tjo R 1 44 .4 1~ k ! i i • i an I i r i i• k Please RSVP to Gina Pine;do i • • ' * i T 1! 'V CALIFORNIA'S COMPREHENSIVEWATER PACKAGE L F- R Association u Ufa s ~ir A'~cnKCita INFORMATIONAL FORUMS EVENT N071CE California-'s Comprehensive Water Package informational Forum Friday, (larch 12, 2010 7:30 a.m. to 9:30 a.m. Santa Ana, A PI ease join us for an informational forum that will discuss the comprehensive water package, which was passed by the legislature and signed by the Governor last year. The package contains four policy bills along with an $11.14 billion general obligation bond proposal that voters will consider on the November 2010 ballot. What: A special statewide series of water forums seekingto help build understanding for the many legislative aspects of the recently enacted Cahfomio Comprehensive 4rWoter Package, Who: Water experts, state and local representatives, local opinion leaders and general public. When: Friday, March 12 7;30 a.m. to 9;30 am. Where: Bowers Museum 2002 N. Main Street Santa Ana, CA 92706 vsrww.bowers.or This event is open to the general public and there is no charge for attending. A continental breakfast will be served. Forum hosts include the California Latino Water Coalition (CLWC), Association of California Water Agencies (A,CWA,) and State of California. Local event participants include Orange County Water District and Municipal Water District of Orange County. To RSVP, please call (916) 503-1411 or email bquintana(@Iatinowater.com or Jennifer Persike at lenniferp acwa.com. You may also visit our websites www.latinowater.com or www.acwa.com. ITEM NO. 9.4 AGENDA REPORT Meeting Date: March 11, 2010 Subject: Planning-Engineering-Operations Committee (Mills/Summerfield) Alternate: Beverage Minutes of meeting held March 4, 2010 at 4:00 p.m. Meeting scheduled April 1, 2010 at 4:00 p.m. ATTACHMENTS: Name: Description: Type: PEO_Minutes _-_030410.doc PEO Mtg Minutes 03/04/10 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT PLANNING-ENGINEERING-OPERATIONS COMMITTEE MEETING March 4, 2010 A meeting of the Planning-Engineering-Operations Committee was called to order by Director Mills at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE STAFF Director William R. Mills, Chair Ken Vecchiarelli, General Manager Director John W. Summerfield Steve Conklin, Engineering Manager Lee Cory, Operations Manager Ken Mendum, Ops Superintendent John DeCriscio, Chief Plant Operator Damon Micalizzi, PI Specialist 1. PUBLIC COMMENTS Mr. Modesto Llanos, a long term citizen of Yorba Linda and District customer, who recently became active in the Citizens Advisory Committee, attended the meeting to learn more about the District and projects in progress. 2. DISCUSSION ITEMS 2.1. Monthly Groundwater Production and Purchased Import Water Report. Mr. DeCriscio reported on water production for February 2010, noting that it was the lowest in five years at 676 acre-feet or roughly 8 million gallons per day average, of which 83% was groundwater production. Cumulatively, water conservation District-wide is 6.9% beyond the 10% conservation goal. 2.2. Monthly Preventative Maintenance Program Report. Mr. Mendum reported that our maintenance crews are on target to meet PM goals for the fiscal year, with the exception of sewer televising. He noted that equipment repairs have slowed progress and that they plan to request the purchase of another crawler unit for the camera to keep the televised inspection work moving. 3. ACTION CALENDAR 3.1. Engineering Services for Wellhead Equipping of YLWD Well No. 20. Mr. Conklin reported that five proposals were solicited and three were received for engineering services. Based on the District's proposal review process, staff recommended award of a professional services agreement with Civiltec Engineering for $79,820. The Committee discussed the proposals and supported the recommendation for award to Civiltec Engineering. 1 3.2. On-Call Services Contract with MWH Americas, Inc. (MWH) Mr. Conklin reported that MWH was previously retained for On-Call Services under the General Manager's signing authority to update the District's hydraulic model and evaluate pump connection locations to enhance emergency response and fire protection capabilities. Amendment No. 1 to the services agreement was approved by the General Manager for $33,000 to provide further work on those items. Additional work is necessary to take these tasks through to completion. Following discussion, the Committee supported staff recommendation for approval of On-Call Services contract Amendment No. 2 with MWH for a fee increase not to exceed $47,240. The majority of this Amendment is to convert the current hydraulic model, which was constructed in 2003, to a GIS-compatible format. 4. DISCUSSION ITEMS (Continued) 4.1. Monthly Groundwater Producers Meeting Report Mr. Conklin reported on the February Groundwater Producers Meeting, noting the discussion on the Annexation issue, where YLWD, IRWD and Anaheim are proposing to proceed with a combined annexation request. The Committee discussed various annexation issues and options. 4.2. Status Report on Capital Projects in Progress Mr. Conklin reported on projects in planning, design and construction. Concerning the proposed West Wellfield Project, the Committee asked staff to also look at potential well sites on or closer to the Richfield Plant. 4.3. Future Agenda Items and Staff Tasks None. 5. ADJOURNMENT 5.1. The meeting was adjourned at 5:10 p.m. The next regular meeting of the Planning-Engineering-Operations Committee will be held April 1, 2010 at 4:00 p.m. 2 ITEM NO. 9.5 AGENDA REPORT Meeting Date: March 11, 2010 Subject: Public Information-Technology Committee (Beverage/Hawkins) Alternate: Summerfield Minutes of meeting held March 2, 2010 at 4:00 p.m. Meeting scheduled April 6, 2010 at 4:00 p.m. ATTACHMENTS: Name: Description: Type: 030210_PIT_-_Minutes.doc PIT Mtg Minutes 03/02/10 Minutes MINUTES OF THE YORBA LINDA WATER DISRICT PUBLIC INFORMATION -TECHNOLOGY COMMITTEE MEETING March 2, 2010 A meeting of the Public Information-Technology Committee was called to order by Director Beverage at 4:00 p.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. COMMITTEE STAFF Director Michael J. Beverage, Chair Ken Vecchiarelli, General Manager Director Phil Hawkins Pat Grady, Assistant General Manager Damon Micalizzi, PI Specialist 1. PUBLIC COMMENTS None. 2. DISCUSSION ITEMS 2.1. Naming of Future District Facilities The Committee discussed the policy and precedence issues related to naming District facilities in honor of past Board Members and/or District employees. The Committee decided to continue discussions on this matter with consideration of further options. 2.2. Conservation Ordinance Monthly Statistics Mr. Grady updated the Committee on the District's monthly conservation ordinance statistics. Director Beverage suggested a different color combination for updates of the grid display. 2.3. Public Outreach Activities Mr. Vecchiarelli updated the Committee on current and future public outreach activities. The Committee will explore the cost of bottled water and other branding opportunities in more detail at a future meeting. 2.4. IT Projects Monthly Status Mr. Grady updated the Committee on the Information Technology projects currently in progress including: An update of the financial software implementation, GIS Phase 2 completion, GPS technology in the vehicles and the finishing touches on the new water bill. 2.5. Future Agenda Items and Staff Tasks Director Beverage would like the Committee to renew efforts to look at putting practice fields on the tops of certain YLWD Reservoirs. 3. ADJOURNMENT 3.1. The meeting was adjourned at 5:33 p.m. The next regular meeting of the Public Information-Technology Committee will be held April 6, 2010 at 4:00 p.m. 1 ITEM NO. 9.7 AGENDA REPORT Meeting Date: March 11, 2010 Subject: Citizens Advisory Committee (Directors Rotate Attendance) Minutes of meeting held March 1, 2010 at 8:30 a.m. (Hawkins) Meeting scheduled March 29, 2010 at 8:30 a.m. (Beverage) ATTACHMENTS: Name: Description: Type: 030110_-_CAC_Minutes.doc CAC Mtg Minutes 03/01/10 Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT CITIZENS ADVISORY COMMITTEE MEETING March 1, 2010 A meeting of the Citizens Advisory Committee was called to order at 8:30 a.m. The meeting was held at the District's Administrative Office at 1717 E Miraloma Ave, Placentia CA 92870. DIRECTORS PRESENT STAFF PRESENT Phil Hawkins, Director Ken Vecchiarelli, General Manager Damon Micalizzi, PI Specialist Anthony Manzano, Sr. Project Manager COMMITTEE MEMBERS PRESENT OTHER VISITORS Richard Bogda Bill Guse Jessica Hanley, MWDOC PA Specialist Oscar Bugarini Bob Kiley Modesto Llanos Greg Meyers Cheryl Spencer-Borden Mark Schock Lindon Baker Carl Boznanski Gene Scearce Gary Melton 1. CALL TO ORDER 1.1. Introduce CAC Members Present The Advisory Committee attendees and visitors introduced themselves and shared their background, interests and what they have gotten out of the experience thus far. Mr. Llanos joined the group for the first time. 1.2. Introduce Visitors Jessica Hanley of MWDOC also introduced herself to the group. 1.3. Introduce Engineering Department, Planning and Design Section Mr. Vecchiarelli had Steve Conklin introduce the Planning and Design Division of his Engineering team. Anthony Manzano gave a PowerPoint presentation describing the different projects currently under planning and design. The Committee members interacted with questions and comments. 2. PUBLIC COMMENTS None. 3. DISCUSSION ITEMS 3.1. Presentation Regarding MWDOC Outreach Programs Jessica Hanley gave a PowerPoint presentation outlining the various public outreach and education programs offered by the Municipal Water 1 district of Orange County (MWDOC) and distributed some current collateral pieces available for partners in the community. 3.2. Appointment to Fill Vacancy on the Board of Directors Mr. Vecchiarelli introduced Director Phil Hawkins as the newest member of the Board of Directors and spoke briefly about the appointment process and the numerous qualified candidates that came from the CAC. 3.3. Talking Points Regarding Recent Rainfall and Existing Drought Mr. Vecchiarelli reported that in spite of all of the recent rainfall and the District's successful conservation efforts, it is important that the CAC continue their efforts to keep the community vigilant that the water shortage and drought conditions here in California, are far from over. 3.4. Status Report on Conservation Efforts Mr. Vecchiarelli reported the conservation efforts are at 14% year to date through the end of January and that the six conservation status signs throughout the community have remained at this level through December and January. The update through February had not yet been calculated. After the meeting, the report was completed and showed February usage down considerably, causing the conservation efforts to rise to 16% year to date. 3.5. Future Agenda Items Mr. Vecchiarelli encouraged the Committee members to continue to provide feedback through e-mails and/or telephone calls to let us know if there are other matters or topics they would like to discuss or explore. 4. ADJOURNMENT 4.1. The next regular meeting of the Citizens Advisory Committee will be held March 29, 2010 at 8:30 a.m. 2 ITEM NO. 11.1 AGENDA REPORT Meeting Date: March 11, 2010 Subject: Meetings from March 12, 2010 - April 30, 2010 ATTACHMENTS: Nan) BOD Activity Calendar.pdf BOD Activity Calendar Backup Material Board of Directors Activity Calendar Event Date Time Attendance by: March 2010 Finance-Accounting Committee Meeting Mon, Mar 15 8:OOAM Summerfield/Collett Exec-Admin-Organizational Committee Meeting Tue, Mar 16 4:OOPM Mills/Beverage Yorba Linda City Council Tue, Mar 16 6:30PM Summerfield MWDOC Board Wed, Mar 17 8:30AM Staff OCWD Board Wed, Mar 17 5:OOPM Staff MWDOC/OCWD Ad Hoc Committee Meeting Tue, Mar 23 4:OOPM Mills/Beverage Yorba Linda Planning Commission Wed, Mar 24 7:OOPM Hawkins Board of Directors Regular Meeting Thu, Mar 25 8:30AM Citizens Advisory Committee Meeting Mon, Mar 29 8:30AM Beverage April 2010 Planning-Engineering-Operations Committee Thu, Apr 1 4:OOPM Mills/Summerfield Public Information-Technology Committee Tue, Apr 6 4:OOPM Beverage/Hawkins Yorba Linda City Council Tue, Apr 6 6:30PM Mills MWDOC/MWD Workshop Wed, Apr 7 8:30AM Staff OCWD Board Wed, Apr 7 5:OOPM Staff Board of Directors Regular Meeting Thu, Apr 8 8:30AM Finance-Accounting Committee Meeting Mon, Apr 12 4:OOPM Summerfield/Collett Personnel-Risk Management Committee Meeting Tue, Apr 13 4:OOPM Collett/Hawkins Yorba Linda Planning Commission Wed, Apr 14 7:OOPM Collett Exec-Admin-Organizational Committee Meeting Tue, Apr 20 4:OOPM Mills/Beverage Yorba Linda City Council Tue, Apr 20 6:30PM Summerfield MWDOC Board Wed, Apr 21 8:30AM Staff OCWD Board Wed, Apr 21 5:OOPM Staff Board of Directors Regular Meeting Thu, Apr 22 8:30AM Citizens Advisory Committee Meeting Mon, Apr 26 8:30AM Summerfield Ethics and Brown Act Training Tue, Apr 27 10:OOAM Yorba Linda Planning Commission Wed, Apr 28 7:OOPM Hawkins 3/8/2010 9:59:41 AM ITEM NO. 12.1 AGENDA REPORT Meeting Date: March 11, 2010 Subject: Santa Ana River Watershed Conference - April 22, 2010 ATTACHMENTS: Nan) SARW Conference.pdf Conference Flyer Backup Material Approved by the Board of Directors of the Yorba Linda Water District 3/11 /2010 MB/JS 5-0 The Board also authorized attendance at events listed as Item Nos. 12.2. and 12.3. in the minutes. a,-' 110L-1- -P~Aw-lr Forking Together for a Sustainable Future #S WA I& April 22, 2010 *ATV Disneyland Hotel • Anai~ein~ , .,z wA 9:15 a.m. - 3 p.m. (Registration hegin, at P', ~0 1w www.0w0w.com "PP7 Convened by the Santa Ana Watershed Project Authority 'Coordinated by the Water Education Foundation CONSULTING W,V1 kk FIR'( A'HON Presented by RBF Consulting FrR)UNDATION Join us on Earth Day 1070 to learn about the importance of the Santa Ana River Albert A. Webb Associates Watershed and plans to improve the American Groundwater Trust quality and reliability of our water supply. Best Best & Krieger Big Bear Municipal Water District Brownstein Hyatt Farber Shreck What will be discussed? CDM > The vulnerability of the Delta and Colorado River Chino Basin Water Conservation District > Our reliance on imported water Disneyland Resort > The uncertainly of climate change affecting precipitation and Dudek Engineering & Environmental snow pack Eastern Municipal Water District > Our anticipated rate of growth and how we develop > Successes from 40 years of work - a legacy of innovation, ICF International technology and cooperation Inland Empire Utilities Agency > Implementing the Vision: "One Water One Watershed" Orange County Water District (OWOW) is the answer RBF Consulting > Achievements in water use efficiency, recycling plants, Santa Ana Watershed Project Authority storage and environmental record. Valley Soil, Inc > Now will we pay for the infrastructure, operations and integration that we will need in the years ahead? Western Municipal Water District > Options to pay for improvements: the upcoming statewide water bond and regional fees Become a sponsor! Call lean for information at (916) 444-6240 > What will our future look like? Watershed The Santa Ana River 2010: Working / r a Sustainable Future Note: If your company is a sponsor, you do not need to register on this form. Contact Diana Farmer, Water Education Foundation at dfarmerPwatereducation.org or (916) 444-6240. Name(s) Title(s) Organization Address City State Zip Email Phone J Enclosed is my registration fee for Santa Ana River Watershed 2010: $125 per person x person(s) _ $ Lunch Preference: ❑ Non-Vegetarian J Vegetarian Purchase order # ❑ Mastercard ❑ Visa D American Express Credit card number Exp. Date f Signature (must be signed to process credit card order) Return form with payment to: Water Education Foundation 717 K Street, Suite 317, Sacramento, California 95814 Fax (916) 448-7699 or register online at www.owow2010.com