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HomeMy WebLinkAbout2024-02-08 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, February 8, 2024, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS This meeting will be held in person. For public convenience, the meeting can also be accessed via internet-based service or telephone as indicated below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: https://us06web.zoom.us/j/87687768205 Telephone: (669) 444-9171 or (669) 900-6833 Meeting ID: 876 8776 8205 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL Trudi DesRoches, President Tom Lindsey, Vice President Brett R. Barbre, Director Phil Hawkins, Director Gene Hernandez, Director 5. ADDITIONS/DELETIONS TO THE AGENDA Items may be added to the agenda upon determination by a two-thirds vote of the Board, or a unanimous vote if only three Directors are present, that there is a need to take immediate action which came to the District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2)) 6. AB 2449 TELECONFERENCE REQUESTS 7. INTRODUCTIONS AND PRESENTATIONS 7.1. Elected Official Liaison Reports 7.2. Introduction of New Hires 8. PUBLIC COMMENTS Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) 9. 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. 9.1. Liability Claims Pursuant to Section 54956.95 of the California Government Code Claimant: Sarah and Gregory Bender, Sr. Agency Claimed Against: Yorba Linda Water District Page 1 of 124 9.2. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 10. REPORT FROM CLOSED SESSION 11. CONSENT CALENDAR All items on the consent calendar are considered routine and may be approved by a single motion. There will be no discussion of these items unless a member of the Board, staff, or public requests separate consideration. 11.1. Minutes of the Board of Directors Meetings Held December 12, 2023 - January 4, 2024 Recommendation: That the Board of Directors approve the minutes as presented. 11.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $8,601,407.59 11.3. Unaudited Financial Statements for Period Ended December 31, 2023 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the Second Quarter Ended December 31, 2023 of Fiscal Year 2023-24. 11.4. Cash and Investment Reports for Period Ended December 31, 2023 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Period Ended December 31, 2023. 11.5. Directors and General Manager Fees and Expenses Report for Second Quarter of Fiscal Year 2023-24 Recommendation: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for the Second Quarter of Fiscal Year 2023-24. 11.6. Award of Construction Contract for Fiscal Year 2023-24 Pressure Regulating Station Replacement Project Recommendation: That the Board of Directors award the construction contract for the Fiscal Year 2023-24 Pressure Regulating Station Replacement Project to Big Ben, Inc. for $1,331,526.00, Job Nos. J-2023-46, 48, 49, 51, 52 and 53. 11.7. Award of Professional Services Agreements for the Multiple Award Task Order Contract for Professional Engineering Services Recommendation: That the Board of Directors authorize the General Manager to execute five (5) non-exclusive Professional Services Agreements for the Multiple Award Task Order Contract for Professional Engineering Services with Albert A. Webb Associates, Hazen and Sawyer, MKN & Associates, Psomas, and Tetra Tech, Inc. for an initial period of three (3) years and cumulative total not to exceed of $3,000,000. 11.8. Request for Proposals for Comprehensive Classification and Compensation Study Recommendation: That the Board of Directors authorize staff to distribute the Page 2 of 124 Request for Proposals for a Comprehensive Classification and Compensation Study. 12. PUBLIC HEARING 12.1. Board of Directors' Compensation Recommendation: That the Board of Directors adopt Ordinance No. 2024-XX setting compensation for members of the Board pursuant to Section 20200 et seq. of the California Water Code and superseding Ordinance No. 03-01. The order of the public hearing shall be as follows: 1. Opening of Hearing by Presiding Officer 2. Verification of Notice of Hearing 3. Report by General Manager 4. Comments and Communications from the Public 5. Closing of Hearing by Presiding Officer 6. Board Discussion and Consideration of Action 13. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior to formal action. 13.1. Board of Directors' Committee, Agency, and Intergovernmental Meeting Assignments and Amendments to Policies and Procedures Manual Recommendation: That the Board of Directors (1) approve the continuation of existing committees and assignments and the proposed agency and governmental meeting assignments for the 2024 calendar year; and (2) adopt Resolution No. 2024-XX amending Section 9.1 of the Board of Directors Policies and Procedures Manual. 14. REPORTS, INFORMATION ITEMS, AND COMMENTS 14.1. Director's Reports 14.2. General Manager's Report 14.3. General Counsel's Report 14.4. Future Agenda Items and Staff Tasks 15. COMMITTEE REPORTS 15.1. Interagency Committee with MWDOC and OCWD 15.2. Joint Agency Committee with City of Yorba Linda 15.3. Joint Agency Committee with City of Placentia 15.4. Joint Agency Committee with City of Brea 15.5. Joint Agency Committee with Placentia-Yorba Linda Unified School District 16. BOARD OF DIRECTORS ACTIVITY CALENDAR 16.1. Meetings from February 9 - March 31, 2024 17. DISCUSSION ITEMS 17.1. Process for Reviewing Proposals for General Counsel Services Page 3 of 124 17.2. Strategic Plan Update Due to logistic limitations, this portion of the meeting will not be broadcast via internet- based service. Interested parties are welcome and invited to attend in person. 18. ADJOURNMENT 18.1. The next regular meeting is scheduled Thursday, February 22, 2024 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District’s Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When practical, these materials will also be posted on the District’s website at https://ylwd.com/. (GC 54957.5) Accommodations for the Disabled Requests for disability-related modifications or accommodations, including auxiliary aids or services, required for participation in the above-posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC 54954.2(a)) Page 4 of 124 ITEM NO. 11.1. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Minutes of the Board of Directors Meetings Held December 12, 2023 - January 4, 2024 RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: 1. 2023-12-12 - Minutes - BOD Regular Meeting 2. 2023-12-19 - Minutes - BOD Regular Meeting 3. 2024-01-04 - Minutes - BOD Special Meeting Page 5 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 12, 2023 at 7:30 a.m. 1 2023-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, December 12, 2023, 7:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 7:30 a.m. 3. PLEDGE OF ALLEGIANCE Human Resources and Risk Manager Thompson led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Brett R. Barbre Mark Toy, General Manager Trudi DesRoches Doug Davert, Assistant General Manager Phil Hawkins John DeCriscio, Operations Manager Tom Lindsey Delia Lugo, Finance Manager Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Joanna Gonzalez, Public Affairs Officer ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA (None) 6. AB 2449 TELECONFERENCE REQUESTS (None) PUBLIC COMMENTS (None) 7. CLOSED SESSION The Board entered Closed Session at 7:31 a.m. 7.1.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager Page 6 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 12, 2023 at 7:30 a.m. 2 2023-XXX 7.2.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: Andrew Gagen, General Counsel Unrepresented Employee: General Manager The following items were also considered at this time. 19.1.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: General Manager Employee Organization: Yorba Linda Water District Employees Association 19.2.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: General Manager Unrepresented Employees: All Unrepresented Classifications 19.3.Conference with Legal Counsel – Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: YLWD v. Alex Winsberg (Orange County Superior Court – Case No. 30-2022-01284814-CU-IR-CJC) 8. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 8:54 a.m. General Counsel Gagen announced that no reportable action was taken. 9. SEATING OF DIRECTORS AND APPOINTMENT OF OFFICERS 9.1.Reorganization of the Board of Directors and Appointment of Officers Director Barbre made a motion, seconded by Director Hawkins, to appoint Director DesRoches as President. and Director Lindsey as Vice President. Motion carried 4-0-0-0 on a roll call vote. The following items were taken out of order. 14. ACTION CALENDAR 14.2. Highland Reservoir Resident Input Staff provided some historical background on this matter and summarized the input received from responding residents including topics of concern. Staff recommended the Board consider securing the facility in the same manner as the District is doing across the entire service area. Page 7 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 12, 2023 at 7:30 a.m. 3 2023-XXX A resident commented on his previous interactions with staff regarding this matter and the temporary permitted use of his property for a soccer camp. He also shared his concerns regarding the planned installation of landscaping at his home, the road continuing to remain unpaved, and the time taken to resolve this matter. He then requested the Board reconsider staff’s recommendation. Yorba Linda Council Member Gene Hernandez commented on the City’s requirements concerning roads versus trails. Director Barbre summarized previous Board action taken on this matter. Discussion continued regarding City staff’s proposal for an equestrian easement at the site and the lack of consensus between surrounding property owners on multiple aspects. The same resident stated that one of his three parcels was the only property impacted by the access road and that OCFA had not advised them to remove any trees. A second resident commented on current usage of the access road and spoke in favor of having access to the gate. A third resident commented on his previous interactions with OCFA regarding tree removal when constructing his home. Yorba Linda Council Member Gene Hernandez commented on the City’s master plan for connecting all the equestrian trails, the life span of eucalyptus trees, and the language contained within the existing road easements. Staff reviewed the locations of the existing easements, proposed equestrian easement, existing equestrian trail, and the existing unpaved road. The first resident stated that if the existing road was to stay in its current location, he believed there was still room for a future equestrian trail. Director Barbre made a motion, seconded by Director Hawkins, directing staff to negotiate with the residents regarding paving, curbing, and ongoing maintenance of the access road up to the existing gate, and to come back to the Board with a proposal to address resident access to the gate, potential installation of a second gate at the end of the pavement, and the installation of additional security cameras at the site. Vice President Lindsey spoke in favor of taking these actions at this time as it may be several years before the City moves forward with the proposed equestrian easement. Motion carried 4-0-0-0. Page 8 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 12, 2023 at 7:30 a.m. 4 2023-XXX Director Hawkins left the meeting at 9:46 a.m. 15. DISCUSSION ITEMS 15.1.Capital Improvement Program (CIP) Project Status Staff reviewed the CIP budget including expended and projected expenses and the status of current projects. President DesRoches requested staff notify residents on social media regarding the status and expected completion of the Imperial Highway Waterline Project and its current impact on traffic. Director Barbre inquired as to plans for addressing issues at various facilities. Staff indicated these topics would be discussed with the CIP Review Group. General Manager Toy requested the Board consider the secondary action associated with Item No. 9.1. – Appointment of Officers. 9. SEATING OF DIRECTORS AND APPOINTMENT OF OFFICERS CONTINUED 9.1.Reorganization of the Board of Directors and Appointment of Officers Continued Director Barbre made a motion, seconded by Director Lindsey, to appoint Delia Lugo as Treasurer, Annie Alexander as Board Secretary, and the future Administrative Assistant as Assistant Board Secretary. Motion carried 3-0-0-1 with Director Hawkins being absent. 10. ADJOURN TO FINANCING AUTHORITY / PUBLIC FINANCING CORP MEETINGS Director Barbre clarified that the Directors would not receive additional compensation for participating in these meetings. The meeting was adjourned to the Financing Authority and Public Financing Corporation Regular Meetings at 10:05 a.m. The meeting was resumed at 10:07 a.m. 11. INTRODUCTIONS AND PRESENTATIONS 11.1.Elected Official Liaison Reports (None) 12. PUBLIC COMMENTS (None) 13. CONSENT CALENDAR Director Barbre inquired as to an expense listed for payment under Item No. 13.1. Page 9 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 12, 2023 at 7:30 a.m. 5 2023-XXX Director Barbre made a motion, seconded by Director Lindsey, to approve the Consent Calendar. Vice President Lindsey noted that the Financial Review Group had requested one of the future budget workshops focus on District reserves. Motion carried 3-0-0-1 with Director Hawkins being absent. 13.1.Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $2,661,466.56. 13.2 Budget to Actual Statements for Period Ended October 31, 2023 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for Period Ended October 31, 2023. 13.3.Cash and Investment Report for the Period Ended October 31, 2023 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the Period Ended October 31, 2023. 13.4.Amendments to Encroachments Policy Recommendation: That the Board of Directors adopt Resolution No. 2023-XX adopting, in its substantial form, an amended Encroachments Policy, and rescinding Resolution No. 2022-33. 14. ACTION CALENDAR CONTINUED 14.1.Request for Proposals (RFP) for General Legal Counsel Services Staff reviewed the amendments incorporated in the draft RFP. Director Barbre requested the following firms be invited to respond to the RFP: Brownstein Hyatt Farber & Schreck Best, Best & Krieger Aleshire & Wynder Atkinson, Andelson, Loya, Ruud & Romo Rutan & Tucker Frost Brown Todd AlvaradoSmith Director Barbre made a motion, seconded by Director Lindsey, to instruct staff to distribute the Request for Proposals for General Legal Counsel Services. Motion carried 3-0-0-1 with Director Hawkins being absent. Page 10 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 12, 2023 at 7:30 a.m. 6 2023-XXX 16. REPORTS, INFORMATION ITEMS, AND COMMENTS 16.1.Director’s Reports The Directors reported on their attendance at recent meetings and events. Vice President Lindsey commended the Finance Department for their support of the Financial Review Group. Director Barbre requested staff schedule a future presentation on the Pure Water program and its impact on District operations. President DesRoches commended staff on being recognized as Best Utilities Service Provider at the Best of Yorba Linda Awards. Vice President Lindsey thanked Director Barbre for his service as President in 2023. 16.2.General Manager’s Report (Included in the agenda packet.) 16.3.General Counsel’s Report (None) 16.4.Future Agenda Items and Staff Tasks Director Barbre requested an item on the December 19, 2023 Board meeting agenda to consider a letter of support for the appointment of former Director Andy Hall to the U.S. Environmental Protection Agency’s Environmental Financial Advisory Board. President DesRoches suggested the Board consider formally recognizing J. Wayne Miller, Ph.D. for his service as Director. Director Barbre proposed renaming the PFAS Water Treatment Plant in Dr. Miller’s honor. Vice President Lindsey suggested a letter be sent to Dr. Miller inquiring as to his interest in doing so. Staff will draft a letter for Board consideration at the December 19, 2023 Board meeting. 17. COMMITTEE REPORTS 17.1.Interagency Committee with MWDOC and OCWD __________ / DesRoches – Next meeting will be scheduled when needed. 17.2.Joint Agency Committee with City of Yorba Linda Lindsey / DesRoches – Next meeting will be scheduled when needed. 17.3.Joint Agency Committee with City of Placentia Lindsey / DesRoches – Next meeting will be scheduled when needed. 17.4.Joint Agency Committee with City of Brea Barbre / Lindsey – Initial meeting yet to be scheduled. Page 11 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 12, 2023 at 7:30 a.m. 7 2023-XXX 17.5.Joint Agency Committee with Placentia-Yorba Linda Unified School District Barbre / Lindsey – Next meeting will be scheduled when needed. 18. BOARD OF DIRECTORS ACTIVITY CALENDAR 18.1 Meetings from December 13, 2023 – January 31, 2024 The Board reviewed the activity calendar. 19. CLOSED SESSION CONTINUED The Board considered these items in conjunction with the earlier Closed Session. 20. REPORT FROM CLOSED SESSION CONTINUED This report was provided earlier in the meeting. 21. ADJOURNMENT 21.1.The meeting was adjourned at 10:31 a.m. in the memory of Hon. Kelly Rowe, Director for OCWD. Annie Alexander Board Secretary Page 12 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 19, 2023 at 2:00 p.m. 1 2023-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, December 19, 2023, 2:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 2:00 p.m. 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Delia Lugo, Finance Manager Brett R. Barbre Lori Thompson, Human Resources and Risk Manager Phil Hawkins Delia Lugo, Finance Manager Reza Afshar, Senior Engineer Annie Alexander, Board Secretary Joanna Gonzalez, Public Affairs Officer ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA (None) 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. PUBLIC COMMENTS (None) 8. CLOSED SESSION The Board entered Closed Session at 2:03 p.m. 8.1.Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 8.2.Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representative: Andrew Gagen, General Counsel Unrepresented Employee: General Manager Page 13 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 19, 2023 at 2:00 p.m. 2 2023-XXX 9. REPORT FROM CLOSED SESSION The Board returned to open session at 2:58 p.m. General Counsel Gagen announced that no reportable action was taken. 10. PUBLIC COMMENTS CONTINUED Dave Ramocinksy, resident, inquired as to an opportunity for members of the public to ask questions of the candidates following their interviews. President DesRoches explained that a public Q&A of candidates was not planned for this meeting but residents were welcome to submit any related questions, concerns, or messages of support to the Board. Director Hawkins also noted there would be an opportunity for public comment at the meeting scheduled January 4, 2024, prior to the Board’s consideration of making an appointment. 11. CANDIDATE INTERVIEWS 11.1.Candidate Interviews for Board Vacancy The Board of Directors interviewed the first candidate, Hon. Gene Hernandez. As the next candidate was delayed the Board determined to consider the items under the Action Calendar at this time. 12. ACTION CALENDAR 12.1.Letter of Endorsement for Former Director Andy Hall Director Barbre made a motion, seconded by Director Hawkins, to approve the letter of endorsement supporting Hon. Andy Hall’s nomination for appointment to the US EPA Environmental Financial Advisory Board. Motion carried 4-0-0-0. 12.2.Recognition of Former Director Wayne Miller’s Service and Renaming of PFAS Water Treatment Plant President DesRoches requested the second sentence in the letter be revised to reference the number of years former Director Miller served. Director Hawkins made a motion, seconded by Director Lindsey, to (1) approve the correspondence to Hon. Wayne Miller, Ph.D. requesting formal recognition of his service to the District as amended; and (2) approve the renaming of the PFAS Water Treatment Plant in his name. Motion carried 4-0-0-0. Page 14 of 124 Minutes of the YLWD Board of Directors Regular Meeting Held December 19, 2023 at 2:00 p.m. 3 2023-XXX 11. CANDIDATE INTERVIEWS CONTINUED 11.1.Candidate Interviews for Board Vacancy Continued The Board then interviewed the remaining two candidates, Chi-Chung Tang, Ph.D., and Hon. Peggy Huang. President DesRoches then opened the floor to public comment on this matter. Dave Ramocinksy, resident, stated that he desired to direct his comments to specific candidates and expressed his concern regarding the timing of the appointment in relation to the November 2024 election. 13. ADJOURNMENT 13.1.The meeting was adjourned at 4:25 p.m. Annie Alexander Board Secretary Page 15 of 124 Minutes of the YLWD Board of Directors Special Meeting Held January 4. 2024 at 9:00 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, January 4, 2024, 9:00 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Were included on the agenda. 2. CALL TO ORDER The meeting was called to order at 9:01 a.m. 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Delia Lugo, Finance Manager Brett R. Barbre Lori Thompson, Human Resources and Risk Manager Phil Hawkins Delia Lugo, Finance Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Joanna Gonzalez, Public Affairs Officer ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. AB 2449 TELECONFERENCE REQUESTS (None) 6. PUBLIC COMMENTS (None) 7. ACTION CALENDAR 7.1.Appointment of Director The Board discussed each of the candidate's qualifications and experience. Director DesRoches made a motion, seconded by Director Barbre, to appoint Eugene “Gene” J. Hernandez as the successor to fill the vacant seat on the Board of Directors. Each Director then shared their thoughts on supporting the motion. Motion carried 4-0-0-0 on a roll call vote. Page 16 of 124 Minutes of the YLWD Board of Directors Special Meeting Held January 4. 2024 at 9:00 a.m. 2 2024-XXX General Counsel Gagen stated that since the Board had taken action to appoint Yorba Linda Council Member Hernandez to the YLWD Board of Directors, he desired to get in contact with the City’s Attorney to discuss whether this circumstance created an incompatibility of offices. Director Barbre commented on the doctrine of incompatible offices and stated that it was his understanding that Council Member Hernandez was planning to resign from his office on the Yorba Linda City Council. The Board commended and thanked all the candidates for their participation in the interview process and their willingness to serve the District’s constituents. 8. ADJOURNMENT 8.1.The meeting was adjourned at 9:18 a.m. Annie Alexander Board Secretary Page 17 of 124 ITEM NO. 11.2. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Keri Hollon, Accounting Assistant II SUBJECT: Payments of Bills, Refunds, and Wire Transfers RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $8,601,407.59. BACKGROUND: Section 31302 of the California Water Code says the District shall pay demands made against it when the Board of Directors has approved them. Pursuant to law, staff is hereby submitting the list of disbursements for January 4, 2024 through February 1, 2024, for the Board of Directors’ approval. Items within this disbursement list include: Ten Highest Expenses for Disbursement Orange County Water District 5,182,756.80 Replenishment Assessment Jul-Dec 2023 Orange County Water District 717,260.79 OCWD Annexation Charge 2022-2023 Municipal Water District 363,869.20 Water Deliveries - Nov 2023 T. E. Roberts, Inc 269,239.03 J21-46 Imperial Highway Waterline Service Southern Calif Edison Co. 228,672.31 Electricity Charges - Dec 2023 Various Loc Pacific Hydrotech Corporation 195,614.98 J20-37 Timber Ridge Professional Services ACWA/JPIA 148,313.62 Medical & Dental Premium Feb 2024 SWRCB 90,689.17 Water Systems Annual Fee 7/1/23-6/30/24 Big Ben Inc. 73,820.59 Retention Release J21-36 ACWA/JPIA 41,772.41 Workers Compensation 10/1/23-12/31/23 Page 18 of 124 $ 7,312,008.90 Other Routine Invoices $ 567,446.50 Accts Payable Check Total $ 7,879.455.40 Payroll No. 01 Payroll No. 01 - Directors Payroll No. 02 $ 335,756.06 3,390.99 382,805.14 Total Disbursements $ 8,601,407.59 A summary of the disbursements is attached. ATTACHMENTS: 1. Cap Sheet for February 8, 2024 2. Check Register for January 18, 2024 3. Check Register for February 1, 2024 4. Credit Card Register for February 1, 2024 5. BOD Credit Card for February 1, 2024 Page 19 of 124 CHECK NUMBERS: 1/18/2024 Computer Checks 83509-83567 388,646.70$ 2/1/2024 Computer Checks 83577-83650 951,316.14 1,339,962.84$ WIRES: W010824 Southern Calif Edison Co. 494.05$ W011124 Municipal Water District 363,869.20 W011124A Switch Ltd 713.00 W011724 Southern Calif Gas Co. 34,482.89 W012224 Southern Calif Edison Co. 228,672.31 W013124 Orange County Water District 5,182,756.80 W013124A Orange County Water District 717,260.79 W020124 American Business Bank 948.00 W020124A American Business Bank 10,295.52 6,539,492.56$ 7,879,455.40$ PAYROLL NO. 01: Direct Deposits 229,874.85$ Payroll Taxes 27,665.08 EFT -- CalPERS 53,297.74 Third Party Checks 83446-83450 24,918.39 335,756.06$ PAYROLL NO. 01-Directors: Direct Deposits 2,874.36$ Payroll Taxes 516.63 3,390.99$ PAYROLL NO. 02: Direct Deposits 240,188.80$ Payroll Taxes 56,001.87 EFT -- CalPERS 58,866.99 Third Party Checks 83568-83576 27,747.48 382,805.14$ 721,952.19$ 8,601,407.59$ ================================================================ MEETING OF FEBRUARY 8, 2024 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD ================================================================ DISBURSEMENT TOTAL Summary of Disbursements February 8, 2024 ------------------------------------------------------------------------------------------------------------------ TOTAL OF CHECKS & WIRES TOTAL OF PAYROLL Page 20 of 124 Check No.Date Vendor Name Amount Description 83509 01/18/2024 DIANA D CALLINAN 141.45 CUSTOMER REFUND 83510 01/18/2024 BROOKE AVILA 100.03 CUSTOMER REFUND 83511 01/18/2024 WEN WIN REALTY CO 732.28 CUSTOMER REFUND 83512 01/18/2024 MARY PUMA 103.26 CUSTOMER REFUND 83513 01/18/2024 TRACY SALCEDO 103.89 CUSTOMER REFUND 83514 01/18/2024 TAYLORIA FORRESTER 133.60 CUSTOMER REFUND 83515 01/18/2024 A I HOME 230.58 CUSTOMER REFUND 83516 01/18/2024 REDWOOD HOLDINGS LLC 865.82 CUSTOMER REFUND 83517 01/18/2024 Alternative Hose Inc. 162.47 MECHANIC SHOP SUPPLIES 83518 01/18/2024 Amazon Capital Services 247.95 PHONE HEADSET 83519 01/18/2024 America's Instant Signs 1,130.94 EMPLOYEE OF THE QUARTER SIGNAGE 83520 01/18/2024 Aqua-Metric Sales Co. 32,934.37 OPERATIONS WORK MATERIAL 83521 01/18/2024 Aramark 658.01 UNIFORM SERVICE 83522 01/18/2024 AT & T - Calnet3 1,897.72 ATT CALNET 83523 01/18/2024 Bee Busters, Inc 150.00 COLONY ABATEMENTS 83524 01/18/2024 Big Ben Inc. 73,820.59 RETENTION RELEASE J21-36 83525 01/18/2024 Brian Vargas 140.00 CERTIFICATE REIMBURSEMENT - DISTRIBUTION 4 83526 01/18/2024 CB Technical 4,360.00 GIS & CMMS SERVICE NOVEMBER & DECEMBER 2023 83527 01/18/2024 City Of Placentia 9,892.17 SEWER COLLECTIONS - DECEMBER 2023 83528 01/18/2024 Clinical Lab. Of San Bern. 2,000.00 WATER QUALITY LAB WORK 83529 01/18/2024 Codekas Tools & Equipment 981.74 MECHANIC SHOP TOOLS & EQUIPMENT 83530 01/18/2024 Cogsdale Services Corporation 840.00 GP HR & PR TRAINING 83531 01/18/2024 Culligan of Santa Ana 2,273.33 EQUIPMENT PE SOFTENER 83532 01/18/2024 Dell Financial Services LLC 2,726.54 OFFICE 365 SUPPORT 83533 01/18/2024 Discount Tire Centers (Andonian Enterprises Inc.) 1,825.29 TIRES FOR UNITS #195 & 224 83534 01/18/2024 DUKE'S ROOT CONTROL INC 9,040.00 SEWER LINE ROOT CONTROL 83535 01/18/2024 E. H. Wachs Company 1,202.83 PARTS FOR UNIT #195 83536 01/18/2024 Emery Dyer 2,264.16 J23-34S SEWER CAPACITY FEE REFUND 83537 01/18/2024 Enthalpy Analytical, Inc. 8,475.00 WATER QUALITY TESTING 83538 01/18/2024 ESRI 25,000.00 ESRI SOFTWARE MAINTENANCE RENEWAL 2024 83539 01/18/2024 FedEx Office 21.20 SHIPPING EXPENSE 83540 01/18/2024 Foundation Building Materials 503.14 CART FOR FACILITIES 83541 01/18/2024 Fullerton Paint & Flooring 370.62 HYDRANT PAINT 83542 01/18/2024 George Baltierra 177.78 SAFETY BOOT REIMBURSEMENT 83543 01/18/2024 Gladwell Governmental Services Inc. 300.00 RECORD RETENTION ANALYSIS 83544 01/18/2024 Harrington Industrial 32.58 CL2 SYSTEM PARTS 83545 01/18/2024 Infosend Inc. 5,655.75 BILLING & POSTAGE CUSTOMER BILL 83546 01/18/2024 Keri Hollon 186.00 CERTIFICATE REIMBURSEMENT - ACCOUNTANCY 83547 01/18/2024 Kidman Gagen Law 21,655.90 LEGAL SERVICES - DECEMBER 2023 83548 01/18/2024 Kimball Midwest 305.09 TOOLS FOR MECHANIC SHOP 83549 01/18/2024 MAP Communications 595.20 AFTER HOURS PHONE SERVICE 83550 01/18/2024 Mc Fadden-Dale Hardware 449.77 PRODUCTION HARDWARE SUPPLIES & HYDRANT TOOLS 83551 01/18/2024 Minuteman Press 449.86 CUSTOMER SERVICE HANGING DOOR TAGS 83552 01/18/2024 NatPay Online Business Solutions 26.52 DOCULIVERY - DECEMBER 2023 83553 01/18/2024 Nickey Kard Lock Inc 4,404.36 FUEL 12/16/23-12/31/23 83554 01/18/2024 North American Recycling and Crushing, LLC 765.00 DISPOSAL OF OLD ROAD MATERIAL 83555 01/18/2024 Orkin Pest Control 490.98 PEST CONTROL 83556 01/18/2024 Pres-Tech 1,158.19 PUMP FOR UNIT #195 83557 01/18/2024 Quinn Company 23.96 GASKETS FOR WELL #18 83558 01/18/2024 Resource Computer Solutions 28,349.15 IT CONSULTATION 12/15/23-1/14/24 83559 01/18/2024 RMJ Technologies 343.20 VEHICHLE TRACKING MONTHLY SERVICE 83560 01/18/2024 Shred Confidential, Inc. 79.88 MONTHLY SHRED SERVICE 83561 01/18/2024 South Coast AQMD 8.02 EMISSIONS FEES - ELK MOUNTAIN 83562 01/18/2024 Staples Business Advantage 986.08 PRINTER TONER 83563 01/18/2024 CA State Water Resources Control Board (SWRCB)90,689.17 WATER SYSTEMS ANNUAL FEE 7/2023-6/2024 83564 01/18/2024 Tetra Tech, Inc. 1,055.00 WELL #22 PROFESSIONAL SERVICES NOVEMBER 2023 83565 01/18/2024 Underground Service Alert 736.11 NEW TICKET CHARGES & CA STATE FEE 83566 01/18/2024 United Water Works, Inc. 2,621.76 OPERATIONS WORK MATERIAL 83567 01/18/2024 ACWA/JPIA 41,772.41 WORKERS COMPENSATION 10/1/23-12/31/23 W010824 01/08/2024 Southern Calif Edison Co. 494.05 ELECTRICITY CHARGES - DECEMBER 2023 VARIOUS LOCATIONS W011124 01/11/2024 Municipal Water District 363,869.20 WATER DELIVERIES - NOVEMBER 2023 W011124A 01/11/2024 Switch Ltd 713.00 DATA HOSTING CO-LOCATION W011724 01/17/2024 Southern Calif Gas Co. 34,482.89 GAS CHARGES - DECEMBER 2023 VARIOUS LOCATIONS 788,205.84 For Checks Dated: 1/4/2024 thru 1/18/2024 Yorba Linda Water District Check Register Page 21 of 124 01/04/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 229,874.85 01/04/2024 PAYROLL - PAYROLL TAX PAYMENT 27,665.08 01/04/2024 PAYROLL - CALPERS & TASC 53,297.74 83446 01/04/2024 California State Disbursement Unit 751.84 83447 01/04/2024 Colonial Life 88.21 83448 01/04/2024 Lincoln Financial Group 2,275.88 83449 01/04/2024 Nationwide Retirement Solutions 21,608.52 83450 01/04/2024 Franchise Tax Board 193.94 335,756.06 01/04/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 2,874.36 01/04/2024 PAYROLL - PAYROLL TAX PAYMENT 516.63 3,390.99 Payroll Checks #01 Payroll Checks #01 - Directors Page 22 of 124 Check No.Date Vendor Name Amount Description 83577 02/01/2024 MOUSSA TOUBBEH 356.92 CUSTOMER REFUND 83578 02/01/2024 JASON KOREN 40.04 CUSTOMER REFUND 83579 02/01/2024 ACWA/JPIA 148,313.62 MEDICAL & DENTAL PREMIUM FEBRUARY 2024 83580 02/01/2024 AIRGAS INC 233.62 WELDING SUPPLIES 83581 02/01/2024 RS Americas, Inc 359.14 SCADA PARTS 83582 02/01/2024 Amazon Capital Services 285.20 OFFICE SUPPLIES & IT MATERIALS 83583 02/01/2024 Aramark 645.31 UNIFORM SERVICE 83584 02/01/2024 AT & T - Calnet3 46.70 ATT CALNET 83585 02/01/2024 AT & T - Calnet3 1,035.90 ATT CALNET 83586 02/01/2024 Beto's Auto Body & Paint 1,150.00 SERVICE WORK FOR UNIT #238 83587 02/01/2024 B.L. Wallace Distributor, Inc.9,074.60 METER BOXES & LIDS 83588 02/01/2024 CalCard US Bank 30,970.10 CREDIT CARD TRANSACTIONS - JANUARY 2024 83589 02/01/2024 CIPO CLOUD SOFTWARE INC 700.00 CLOUD MONTHLY SUBSCRIPTION 83590 02/01/2024 City Of Anaheim - Anaheim Public Utilities 32,692.30 ELECTRICAL CHARGES DECEMBER 2023 - VARIOUS LOCATIONS 83591 02/01/2024 Codekas Tools & Equipment 1,674.20 MECHANIC SHOP TOOLS & EQUIPMENT 83592 02/01/2024 Communications Lab 5,000.00 PROFESSIONAL SERVICES DECEMBER 2023 83593 02/01/2024 Culligan of Santa Ana 9.00 EQUIPMENT PE SOFTENER 83594 02/01/2024 Dell Financial Services LLC 95.15 REPLACEMENT LAPTOP BATTERY 83595 02/01/2024 Dean Criske Trucking 2,099.60 ROAD MATERIAL 83596 02/01/2024 Enkay Engineering & Equipment Inc 950.00 TRANSITE PIPE PICKUP (ASBESTOS) 83597 02/01/2024 Factory Motor Parts 68.31 PARTS FOR UNIT #223 83598 02/01/2024 Fairway Ford Sales, Inc.71.66 PARTS FOR UNIT #248 83599 02/01/2024 Fullerton Paint & Flooring 133.63 MARKING PAINT 83600 02/01/2024 GCI Construction Inc.19,546.25 J22-48 MOUNTAIN VIEW WATERLINE REPLACEMENT SERVICES 83601 02/01/2024 General Pump Co., Inc.32,478.62 WELL #20 REPAIR SERVICE & MATERIALS 83602 02/01/2024 G.M. Sager Construction Co., Inc.39,500.00 PAVING WORK AT VARIOUS LOCATIONS 83603 02/01/2024 Haaker Equipment Co.6,451.17 PARTS FOR VARIOUS UNITS & SEWER CAMERA REPAIRS 83604 02/01/2024 Harrington Industrial 57.93 CL2 SYSTEM PARTS 83605 02/01/2024 Health and Human Resource Center, Inc.126.36 EAP - FEBRUARY 2024 83606 02/01/2024 Infosend Inc.7,377.79 BILLING & POSTAGE CUSTOMER BILL 83607 02/01/2024 Jackson's Auto Supply - Napa 771.67 PARTS FOR UNITS #107 & 223 83608 02/01/2024 John Decriscio 156.23 SAFETY BOOT REIMBURSEMENT 83609 02/01/2024 Jorge Lopez 105.00 CERTIFICATE REIMBURSEMENT - DISTRIBUTION 4 83610 02/01/2024 KB Design 946.94 EMBROIDERY FOR STAFF HATS & SHIRTS 83611 02/01/2024 Killingsworth Gear 7,912.73 STATIONARY ENGINE REPAIR SERVICE & PARTS 83612 02/01/2024 Konica Minolta Business 1,308.72 COPIER AGREEMENT & COPY CHARGES 83613 02/01/2024 Leighton Consulting, Inc.2,195.75 J21-46 PROFESSIONAL SERVICES 83614 02/01/2024 Longevity 750.00 PREVENTATIVE HEALTH SCREENINGS 83615 02/01/2024 Mc Fadden-Dale Hardware 252.89 CL2 PARTS FOR FAIRMONT & SEWER TOOLS 83616 02/01/2024 Mohammad Ammar Tohmeh 431.00 REIMBURSEMENT - ASCE MEMBERSHIP, DISTRIBUTION 1 & TREATMENT 2 83617 02/01/2024 Murcal, Inc.998.63 PARTS FOR STATIONARY ENGINE MAINTENANCE 83618 02/01/2024 Nickey Kard Lock Inc 8,636.84 FUEL 1/1/24-1/15/24 83619 02/01/2024 Office Solutions 1,143.31 OFFICE SUPPLIES & COPY PAPER 83620 02/01/2024 Orange County - Tax Collector 254.50 OCSD SHARED COMMUNICATIONS COST 1/24-3/24 83621 02/01/2024 Pacific Hydrotech Corporation 18,012.00 J18-27 HIDDEN HILLS BOOSTER PROFESSIONAL SERVICES 83622 02/01/2024 Pacific Hydrotech Corporation 195,614.98 J20-37 TIMBER RIDGE PROFESSIONAL SERVICES 83623 02/01/2024 Pete's Road Service Inc 1,409.13 TIRE SERVICE FOR UNIT #242 83624 02/01/2024 Phil's Arbor Care 1,700.00 TREE CARE SERVICE 83625 02/01/2024 P.T.I. Sand & Gravel, Inc.2,013.78 ROAD MATERIAL 83626 02/01/2024 Pulltarps Manufacturing 307.43 PARTS FOR UNIT #232 83627 02/01/2024 Red Wing Shoes 232.73 SAFETY BOOTS FOR STAFF 83628 02/01/2024 Resource Computer Solutions 328.50 MULTI-FACTOR AUTHENTICATION SECURITY TOKENS 83629 02/01/2024 Safety-Kleen Systems Inc 558.00 HAZARDOUS MATERIAL DISPOSAL 83630 02/01/2024 Security Solutions 700.00 MIRALOMA SITE SERVICE 83631 02/01/2024 Selman Chevrolet Company 89.63 PARTS FOR UNIT #223 83632 02/01/2024 Transene Company Inc.51.20 CHEMICALS FOR CL2 SYSTEM 83633 02/01/2024 The Sherwin-Williams Co.346.05 PAINT FOR FENCE REPAIRS 83634 02/01/2024 Source 1 Environmental 8,743.50 SEWER LINE REPAIR MATERIALS 83635 02/01/2024 Staples Business Advantage 278.49 PRINTER TONER 83636 02/01/2024 Steve Clayton 105.00 CERTIFICATE REIMBURSEMENT - DISTRIBUTION 5 83637 02/01/2024 Sterling Insights, LLC 3,300.00 STRATEGIC PLANNING & FACILITATION SERVICES 83638 02/01/2024 Sunrise Medical Group 240.00 EMPLOYEE PHYSICALS 83639 02/01/2024 T. E. Roberts, Inc 269,239.03 J21-46 IMPERIAL HIGHWAY WATERLINE SERVICE 83640 02/01/2024 Tetra Tech, Inc.7,580.00 J20-37 TIMBER RIDGE PROFESSIONAL SERVICES 83641 02/01/2024 Three Valleys Municipal Water District 60.00 LEADERSHIP BREAKFAST REGISTRATION 83642 02/01/2024 Townsend Public Affairs, Inc.5,000.00 CONSULTING SERVICES - JANUARY 2024 83643 02/01/2024 United Industries 713.89 OPERATIONS PPE 83644 02/01/2024 United Rentals 539.70 CONCRETE RENTAL & MIX 83645 02/01/2024 United Truck & Car Driving School, Inc.6,400.00 CLASS A VEHICLE TRAINING COURSE 83646 02/01/2024 UNUM Life Insurance Co. of America 6,191.40 LIFE,AD&D,STD&LTD - FEBRUARY 2024 83647 02/01/2024 USA Truck Bodies Inc 29,973.88 CRANE BODY FOR UNIT #248 83648 02/01/2024 United Water Works, Inc.8,248.94 OPERATIONS WORK MATERIAL For Checks Dated: 1/18/2024 thru 2/1/2024 Yorba Linda Water District Check Register Page 23 of 124 83649 02/01/2024 Vision Service Plan 2,628.74 VISION SERVICE PLAN - FEBRUARY 2024 83650 02/01/2024 YO Fire 13,302.81 OPERATIONS WORK MATERIAL W012224 01/22/2024 Southern Calif Edison Co.228,672.31 ELECTRICITY CHARGES - DECEMBER 2023 VARIOUS LOCATIONS W013124 01/31/2024 Orange County Water District 5,182,756.80 REPLENISHMENT ASSESSMENT JULY-DECEMBER 2023 W013124A 01/31/2024 Orange County Water District 717,260.79 OCWD ANNEXATION CHARGE 2022-2023 W020124 02/01/2024 American Business Bank 948.00 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS W020124A 02/01/2024 American Business Bank 10,295.52 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS 7,091,249.56 01/18/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 240,188.80 01/18/2024 PAYROLL - PAYROLL TAX PAYMENT 56,001.87 01/18/2024 PAYROLL - CALPERS & TASC 58,866.99 83568 01/18/2024 Allstate 723.77 83569 01/18/2024 Ameritas 1,575.15 83570 01/18/2024 California State Disbursement Unit 751.84 83571 01/18/2024 Colonial Life 88.21 83572 01/18/2024 Lincoln Financial Group 2,275.88 83573 01/18/2024 Midland National 200.00 83574 01/18/2024 Nationwide Retirement Solutions 22,013.25 83575 01/18/2024 Reliance 39.01 83576 01/18/2024 Franchise Tax Board 80.37 382,805.14 Payroll Checks #02 Page 24 of 124 Vendor Name Amount Description ARMA International 215.00 ANNUAL MEMBERSHIP FEE - MILLEN, M Corner Bakery 89.21 BOARD MEETING LUNCH - 5 ATTEND LA Van Rentals 359.69 WELL #22 DEDICATION VAN RENTAL Tiscareno's Catering & Events 1,835.40 HOLIDAY LUNCHEON CATERING Alea Cafe 91.48 PRODUCTION LUNCH MEETING - 6 ATTEND Big Top Rentals 387.50 FOOD FOR INVENTORY COUNT - 6 STAFF Home Depot (107.76) RETURN OF GRAVEL BAGS Amazon Capital Services 60.18 OFFICE SUPPLIES Home Depot 80.75 STORAGE BAGS & TOOLS FOR UNIT #207 Smog Tech 500.00 SMOG CHECKS FOR VARIOUS VEHICLES Home Depot 343.54 J23-57 CONSTRUCTION MATERIAL Sunstate Equipment Co 161.36 PROPANE REFILL Home Depot 25.80 SOD FOR LANDSCAPE REPAIR Home Depot 67.84 HOSE & NOZZLE FOR WELL #19 Verizon Wireless 3,830.81 VERIZON 10/21-11/20 JRTT AUTO SERVICE 200.00 SERVICE FOR UNIT #208 City Of Placentia 644.00 ENCROACHMENT PERMIT City Of Placentia 486.00 ENCROACHMENT PERMIT City Of Placentia 486.00 ENCROACHMENT PERMIT Government Finance Officers 250.00 PAFR SUBMITTAL FEE Elementor 59.00 WEBSITE DESIGN ANNUAL SOFTWARE Cal State University, Sacramento 199.25 DISTRIBUTION COURSE REGISTRATION - TOY, M Spectrum Enterprise 663.08 INTERNET & DISTRICT TV SERVICES Buffer, Inc 24.00 SOCIAL MEDIA ANALYTICS Amazon Capital Services 86.99 EMPLOYEE SERVICE RECOGNITION ZOOM 55.99 VIRTUAL MEETING SUBSCRIPTION Republic Services #676 650.31 DISPOSAL SERVICE ONLINE Information Services, Inc.434.19 ONLINE UTILITY EXCHANGE & COLLECTION Amazon Capital Services 24.08 EMPLOYEE SERVICE RECOGNITION SMARTSHEET 9.00 MONTHLY SOFTWARE SUBSCRIPTION Calif Water Environ Assn (CWEA)103.00 CERTIFICATE RENEWAL - CWEA GRADE 2 - DIAZ, J Nikki's Kitchen 64.38 LUNCH MEETING - 3 ATTEND Government Finance Officers 460.00 ACFR REVIEW FEE SMARTSIGN 766.69 PRODUCTION FACILITIES SIGNS AWWA 950.00 AWWA CONFERENCE REGISTRATION - TOY, M ACWA-Assn Of Ca Water Agencies 825.00 ACWA DC CONFERENCE REGISTRATION - TOY, M ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION Amazon Capital Services 97.74 EMPLOYEE SERVICE RECOGNITION American Airlines 776.80 FLIGHT - ACWA DC CONFERENCE - TOY, M Foundation Building Materials 89.74 J23-57 CONSTRUCTION MATERIAL Home Depot 70.91 J23-57 CONSTRUCTION MATERIAL Orange County Water Assn.250.00 ANNUAL AGENCY MEMBERSHIP DUES Bitwarden Inc.180.00 PASSWORD PROGRAM De Soto Sales, Inc.245.52 J23-57 CONSTRUCTION MATERIAL Home Depot 65.63 TOOLS FOR UNIT #219 Project Management Institute 150.00 PMP RENEWAL FEE - AFSHAR, R Carpets 4 U 957.60 J23-57 CONSTRUCTION MATERIAL Liebert Cassidy Whitmore 1,120.00 LCW CONFERENCE REGISTRATION - LIM, V Total Testing 648.00 ADMIN ASSISTANT SCREENING TESTS APPLE 0.99 OFFICE EXPENSE Alea Cafe 86.17 INTERVIEW PANEL LUNCH - 4 ATTEND Spectrum Enterprise 210.81 INTERNET & DISTRICT TV SERVICES Amazon Capital Services 13.37 OFFICE SUPPLIES Amazon Capital Services 192.87 BUSINESS ACCOUNT ANNUAL FEE BACKGROUNDS ONLINE 15.00 NEW HIRE BACKGROUND CHECK Schorr Metals, Inc.31.72 GATE BOLT FOR LITTLE CANYON Liebert Cassidy Whitmore 100.00 WEBINAR REGISTRATION - FEHA PROVISIONS Adobe 54.99 SOFTWARE LICENSE Action Wholesale Products Inc 215.50 TOOLS FOR FACILITIES Home Depot 234.41 HARDWARE SUPPLIES FOR FENCING Michaels Arts & Crafts, Brea #2111 35.01 OFFICE SUPPLIES Presidents Donuts 51.48 SAFETY MEETING SUPPLIES Yorba Cleaners 55.70 LINEN CLEANING - STAND BY QUARTERS 1-Feb-24 Cal Card Credit Card U S Bank Page 25 of 124 Orange County Water Assn.30.00 OCWA EVENT REGISTRATION - TOY, M ACWA-Assn Of Ca Water Agencies 825.00 ACWA DC CONFERENCE REGISTRATION - BARBRE, B Spectrum Enterprise 232.18 INTERNET & DISTRICT TV SERVICES ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION Spectrum Enterprise 1,988.12 INTERNET & DISTRICT TV SERVICES Michaels Arts & Crafts, Brea #2111 26.39 OFFICE SUPPLIES Cal Society-Municipal Finance Officers 55.00 MEMBERSHIP RENEWAL - TRUJILLO, M Municipal Water District 1,150.00 WATER POLICY FORUM SPONSORSHIP Farmer Boys 46.39 WELLS FARGO LUNCH MEETING - 3 ATTEND CALIFORNIA FISH GRILL 102.32 LUNCH MEETING - 5 ATTEND Shaw HR Consulting 2,399.00 ADA CONFERENCE REGISTRATION & HOTEL - SEGURA, J Southwest Airlines 111.02 TRAVEL EXPENSE - LCW CONFERENCE - LIM, V Public Sector HR Association 420.00 AGENCY MEMBERSHIP DUES Constant Contact 215.65 SOCIAL MEDIA ENGAGEMENT PLATFORM Victory Lock Control Inc 17.20 KEYS FOR TRAINING ROOM Home Depot 107.74 FENCING FOR LITTLE CANYON Home Depot 61.25 MATERIALS FOR LANDSCAPE REPAIR Maguroya 191.09 LUNCH MEETING - 8 ATTEND Wordfence 119.00 WEBSITE SECURITY LICENSE RENEWAL Schorr Metals, Inc.126.13 METAL TUBING FOR UNITS # 247 & 249 FireHoseDirect 1,382.92 FLANGED PUMP ADAPTERS 30,970.10 Page 26 of 124 Row Labels Vendor Name Document Amount Description Barbre, Brett ACWA-Assn Of Ca Water Agencies 825.00 ACWA DC CONFERENCE REGISTRATION - BARBRE, B Grand Total 825.00 1-Feb-24 Cal Card Credit Card Board of Directors Page 27 of 124 ITEM NO. 11.3. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Unaudited Financial Statements for Period Ended December 31, 2023 RECOMMENDATION: That the Board of Directors receive and file the Unaudited Financial Statements for the Second Quarter Ended December 31, 2023 of Fiscal Year 2023-24. SUMMARY: Presented are the Unaudited Financial Statements for the Period Ending September 30, 2023 for the District. For the period, ending December 31, 2023, staff is presenting “unaudited” statements in the ACFR format. We have included a Statement of Net Position, a Debt Service Ratio Calculation, a Consolidated Budget to Actual Statement, as well as the individual Water and Sewer Budget to Actual Statements. As reported in the Balance Sheet of the Statement of Net Position, the District’s Net Position reflects a positive result when compared to that of the same reporting period of the prior fiscal year by approximately $28.9 million. This is prominently due to rolled forward activity over the course of last fiscal year with the capitalization of the PFAS Treatment Plant as reflected in the Depreciable Capital Assets line item in the balance sheet. Cumulative Volumetric Water Revenue, as reported through the Period Ending December 31, 2023, reflects an average increase of approximately 16% as compared to prior year for the same reporting period. This is a result of the Board approved adjustment to water rates and charges and a slight increase in customer consumption. Total Variable Water Costs results reflect an approximate 20% increase when compared to prior year for the same reporting period as a result of increases in the costs of energy and purchasing water to meet the demand on the water system. With the issuance of the Refunding Revenue Bonds, Series 2017A and Series 2022A the District covenanted “…to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 125% of the Debit Service for such Fiscal Year.” To confirm the covenant is upheld, staff calculates the Debt Service Ratio quarterly and is received and filed by the Board of Directors. Accordingly, the “unaudited” Debt Service Ratio Calculation of the Water Enterprise for the Period Ending December 31, 2023, being reported at Page 28 of 124 403%. STRATEGIC PLAN INITIATIVES: G2 3B – Regularly assess net position and steps to meet strategic goals. ATTACHMENTS: 1. Unaudited Financial Statements for Period Ended December 31, 2023 Page 29 of 124 ASSETS December 2023 December 2022 CURRENT ASSETS: Cash and cash equivalents 35,270,948 68,533,606$ Investment 31,324,925 1,135,017 Accounts receivable - water and sewer services 5,373,048 4,083,045 Accrued interest receivable 22,081 14,425 Prepaid expenses & other deposits 1,220,672 1,203,429 Inventory 510,875 393,648 TOTAL CURRENT ASSETS 73,722,549 75,363,170 NONCURRENT ASSETS: Righ-To-Use Lease Asset 458,786 200,555 Deferred Pension Plan 5,666,539 2,458,386 Deferred OPEB Plan 883,032 520,402 Capital assets: Non-depreciable 14,616,433 10,887,740 Depreciable, net of accumulated depreciation 196,995,592 173,004,910 TOTAL NONCURRENT ASSETS 218,620,382 187,071,993 TOTAL ASSETS 292,342,931 262,435,163 LIABILITIES CURRENT LIABILITIES: Accounts payable 7,527,120 1,672,013 Accrued expenses 4,006 4,472,474 Accrued interest payable 645,919 922,555 Refunding Revenue Bond(s) - current portion 1,600,000 1,525,000 Compensated absences 505,646 495,155 Net OPEB Obligation - 2,501 Customer and construction deposits 1,053,702 1,926,343 Deferred revenue 18,532 15,776 TOTAL CURRENT LIABILITIES 11,354,925 11,031,817 LONG-TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue 10,885,228 11,380,273 Compensated absences 1,516,939 1,485,466 Net Pension Liability 12,476,752 5,595,057 Net OPEB Liability 1,229,101 512,845 Deferred Pension Plan 763,725 5,355,890 Deferred OPEB Plan 339,223 749,701 Deferred Inflow - Gain on Bond 421,130 301,475 Deferred Inflow - Lease & Lease Liability 660,227 306,648 Refunding Revenue Bond(s) 59,280,428 61,198,385 Line of Credit - - TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) 87,572,753 86,885,740 TOTAL LIABILITIES 98,927,678 97,917,557 NET ASSETS: 193,415,253$ 164,517,606$ YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS December 31, 2023 (With December 31, 2022 Actuals for comparison only) Page 30 of 124 December 2023 December 2022 OPERATING REVENUES: Water sales 23,473,706 20,172,312$ Sewer revenues 2,007,391 1,741,760 Other operating revenues 661,494 824,637 TOTAL OPERATING REVENUES 26,142,591 22,738,709 OPERATING EXPENSES Variable water costs 10,310,627 8,594,718 Personnel services 5,752,521 5,548,588 Supplies and services 3,431,131 3,737,893 Depreciation and amortization 4,555,045 3,946,177 TOTAL OPERATING EXPENSES 24,049,324 21,827,376 OPERATING INCOME/(LOSS) 2,093,267 911,333 NONOPERATING REVENUES (EXPENSES): Property taxes 1,220,382 1,187,439 Investment income 860,609 268,739 Interest expense (1,113,000) (1,079,044) Other nonoperating revenues 557,205 900,192 Other nonoperating expenses (19,515) (454,193) TOTAL NONOPERATING REVENUES/EXPENSES 1,505,681 823,133 NET INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS, SPECIAL/EXTRAORDINARY ITEM(S) 3,598,948 1,734,466 CAPITAL CONTRIBUTIONS 445,291 - CHANGES IN NET ASSETS 4,044,239 1,734,466 NET ASSETS - BEGINNING OF YEAR 189,371,014 162,783,140 NET ASSETS - FOR PERIOD END DECEMBER 31, 2023 193,415,253$ 164,517,606$ YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS December 31, 2023 (With December 31, 2022 Actuals for comparison only) Page 31 of 124 YTD Debt Prior YTD PY Debt Actual Service Actual Service FY24 Calculation FY23 Calculation Revenue (Operating): Water Revenue (Residential) 9,699,260$ 9,699,260$ 8,132,235$ 8,132,235$ Water Revenue (Commercial & Fire Det.) 1,064,215 1,064,215 918,367 918,367 Water Revenue (Landscape/Irrigation) 2,602,227 2,602,227 2,297,725 2,297,725 Water Revenue (Service Charge) 7,945,053 7,945,053 7,262,645 7,262,645 Water Revenue (CFC) 2,162,953 2,162,953 1,561,340 1,561,340 Other Operating Revenue 596,834 596,834 748,261 748,261 Total Operating Revenue: 24,070,542 24,070,542 20,920,573 20,920,573 Revenue (Non-Operating): Interest 681,471 681,471 204,865 204,865 Property Tax 1,220,382 1,220,382 1,187,439 1,187,439 Other Non-Operating Revenue 548,940 548,940 828,204 828,204 Total Non-Operating Revenue: 2,450,793 2,450,793 2,220,508 2,220,508 Total Revenue 26,521,335 26,521,335 23,141,081 23,141,081 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 10,310,627 10,310,627 8,594,718 8,594,718 Salary Related Expenses 4,913,407 4,913,407 4,689,389 4,689,389 Supplies & Services 2,947,614 2,947,614 3,264,918 3,264,918 Depreciation & Amortization 3,803,115 - 3,193,890 - Total Operating Expenses 21,974,763 18,171,648 19,742,915 16,549,025 Expenses (Non-Operating): Interest on Long Term Debt 1,113,000 - 1,079,044 - Other Expense 13,543 13,543 412,996 412,996 Total Non-Operating Expenses: 1,126,543 13,543 1,492,040 412,996 Total Expenses 23,101,306 18,185,191 21,234,955 16,962,021 Net Position Before Capital Contributions 3,420,029 8,336,144 1,906,126 6,179,060 Capital Contributions (Non-Cash Transaction - 210,235 - - - GASB 34 Compliant) Total Net Position 3,630,264$ 8,336,144$ 1,906,126$ 6,179,060$      DEBT SERVICE RATIO CALCULATION:                                     Net Revenues 8,336,144 6,179,060                                     Debt Service 2,067,109 1,771,282$                                       %403% 349% Yorba Linda Water District Unaudited Water Enterprise Debt Service Ratio Calculation For the Period Ended December 31, 2023 (With December 31, 2022 for comparison purposes) Page 32 of 124 Summary Financial Report Water & Sewer Funds Annual YTD Dec YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Dec Actual Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Dec 2022) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $11,022,673 1,042,984$ 9,699,260$ (1,323,413)$ 313,203$ 8,132,235$ 1,567,025$ 19.27% Water Revenue (Commercial & Fire Det.) 2,016,621 $1,129,308 152,558 1,064,215 (65,093) 118,291 918,367 145,848 15.88% Water Revenue (Landscape/Irrigation) 4,769,326 $2,670,823 311,480 2,602,227 (68,596) 190,524 2,297,725 304,502 13.25% Water Revenue (Service Charge) 16,076,351 8,038,176 1,341,735 7,945,053 (93,123) 1,227,339 7,262,645 682,408 9.40% Property Taxes - CFC Charges 3,597,389 1,870,642 1,041,916 2,162,953 292,311 1,172,980 1,561,340 601,613 38.53% Sewer Charge Revenue 3,582,947 1,791,474 300,183 1,774,491 (16,983) 249,244 1,538,205 236,286 15.36% Locke Ranch Assessments 410,497 213,458 140,656 232,898 19,440 163,869 203,555 29,343 14.42% Other Operating Revenue 1,327,217 663,609 98,237 661,494 (2,115) 91,516 824,636 (163,142) -19.78% Total Operating Revenue:51,463,692 27,400,161 4,429,749 26,142,591 (1,257,570) 3,526,966 22,738,708 3,403,883 14.97% Revenue (Non-Operating): Interest 948,000 474,000 78,295 860,610 386,610 48,034 268,738 591,872 220.24% Property Tax 2,402,796 1,249,454 745,087 1,220,382 (29,072) 877,492 1,187,439 32,943 2.77% Other Non-Operating Revenue 735,458 367,729 152,600 557,205 189,476 33,978 900,191 (342,986) -38.10% Total Non-Operating Revenue: 4,086,254 2,091,183 975,982 2,638,197 547,014 959,504 2,356,368 281,829 11.96% Total Revenue 55,549,946 29,491,344 5,405,731 28,780,788 (710,556) 4,486,470 25,095,076 3,685,712 14.69% Expenses (Operating): Variable Water Costs (G.W., Import & Powe 19,891,169 11,139,055 1,972,999 10,310,627 (828,428) 954,100 8,594,719 1,715,908 19.96% Salary Related Expenses 14,376,672 6,635,387 1,050,479 5,752,521 (882,866) 956,745 5,548,586 203,935 3.68% Supplies & Services 10,489,766 5,244,883 440,155 3,431,131 (1,813,752) 613,735 3,737,891 (306,760) -8.21% Total Operating Expenses 44,757,607 23,019,325 3,463,633 19,494,279 (3,525,046) 2,524,580 17,881,196 1,613,083 9.02% Expenses (Non-Operating): Interest on Long Term Debt 2,604,419 1,302,210 182,523 1,113,000 (189,210) 192,344 1,079,044 33,956 3.15% Other Expense 18,625 9,313 - 19,515 10,203 10,213 454,193 (434,678) -95.70% Total Non-Operating Expenses: 2,623,044 1,311,522 182,523 1,132,515 (179,007) 202,557 1,533,237 (400,722) -26.14% Total Expenses 47,380,651 24,330,847 3,646,156 20,626,795 (3,704,053) 2,727,137 19,414,433 1,212,361 6.24% Net Position Before Capital Contributions 8,169,295 5,160,497 1,759,575 8,153,993 2,993,497 1,759,333 5,680,643 2,473,350 43.54% Capital Contributions (Non-Cash - - - 445,291 445,291 - - 445,291 0.00% Transaction GASB 34 Compliant) Net Position Before Depreciation 8,169,295 5,160,497 1,759,575 8,599,284 3,438,788 1,759,333 5,680,643 2,918,641 51.38% Depreciation & Amortization 9,379,000 4,689,500 758,003 4,555,045 (134,455) 657,696 3,946,177 608,868 15.43% Total Net Position (1,209,705)$ 470,997$ 1,001,572$ 4,044,239$ 3,573,243$ 1,101,637$ 1,734,466$ 2,309,773$ 133.17% (With December 31, 2022 for comparison purposes) Yorba Linda Water District For Period Ending December 31, 2023 Page 33 of 124 Annual YTD Dec YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Dec Actual (thru vs vs FY24 FY24 FY23 FY24 YTD Budget FY23 Dec 2022) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $11,022,673 1,042,984$ 9,699,260$ (1,323,413)$ 313,203$ 8,132,235$ 1,567,025$ 19% Water Revenue (Commercial & Fire Det.) 2,016,621 $1,129,308 152,558$ 1,064,215 (65,093) 118,291 918,367 145,848 16% Water Revenue (Landscape/Irrigation) 4,769,326 $2,670,823 311,480$ 2,602,227 (68,596) 190,524 2,297,725 304,502 13% Water Revenue (Service Charge) 16,076,351 8,038,176 1,341,735$ 7,945,053 (93,123) 1,227,339 7,262,645 682,408 9% Water Revenue (CFC) 3,597,389 1,870,642 1,041,916 2,162,953 292,311 1,172,980 1,561,340 601,613 39% Other Operating Revenue 1,252,987 626,494 94,057$ 596,834 (29,660) 86,821 748,261 (151,427) -20% Total Operating Revenue: 47,396,018 25,358,114 3,984,730 24,070,542 (1,287,572) 3,109,158 20,920,573 3,149,969 15% Revenue (Non-Operating): Interest 780,000 390,000 62,583 681,471 291,471 38,495 204,865 476,606 233% Property Tax 2,402,796 1,249,454 745,087 1,220,382 (29,072) 877,492 1,187,439 32,943 3% Other Non-Operating Revenue 718,823 359,412 141,256 548,940 189,529 29,479 828,204 (279,264) -34% Total Non-Operating Revenue: 3,901,619 1,998,865 948,926 2,450,793 451,928 945,466 2,220,508 230,285 10% Total Revenue 51,297,637 27,356,980 4,933,656 26,521,335 (835,645) 4,054,624 23,141,081 3,380,254 15% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 19,891,169 11,139,055 1,972,999 10,310,627 (828,428) 954,100 8,594,718 1,715,909 20% Salary Related Expenses 12,155,919 5,610,424 894,642 4,913,407 (697,017) 809,136 4,689,389 224,018 5% Supplies & Services: Communications 210,004 105,002 6,479 92,269 (12,733) 12,750 104,625 (12,356) -12% Contractual Services 634,152 317,076 49,169 294,260 (22,816) 34,072 298,041 (3,781) -1% Data Processing 463,532 231,766 16,186 191,337 (40,429) 20,786 165,732 25,605 15% Dues & Memberships 106,833 53,417 3,809 58,219 4,803 6,606 56,154 2,065 4% Fees & Permits 444,853 222,427 29,343 162,292 (60,135) 33,753 149,539 12,753 9% Board Election - - - - - - - - 0% Insurance 412,250 206,125 34,292 191,183 (14,942) 27,185 149,527 41,656 28% Materials 2,383,837 1,191,919 60,611 494,406 (697,513) 102,201 628,238 (133,832) -21% District Activities, Emp Recognition 58,223 29,112 1,272 12,887 (16,225) 1,454 17,043 (4,156) -24% Maintenance 1,467,855 733,928 16,799 396,264 (337,664) 109,863 439,538 (43,274) -10% Non-Capital Equipment 253,285 126,643 14,248 45,540 (81,103) 8,732 97,272 (51,732) -53% Office Expense 40,418 20,209 5,557 16,571 (3,638) 4,232 17,542 (971) -6% Professional Services 1,417,133 708,567 49,518 488,589 (219,978) 69,059 527,001 (38,412) -7% Training 62,396 31,198 647 5,855 (25,343) 2,081 16,243 (10,388) -64% Travel & Conferences 86,462 43,231 5,309 19,312 (23,919) 6,078 14,442 4,870 0% Uncollectible Accounts 12,750 6,375 (599) 3,658 (2,717) 9,561 13,929 (10,271) -74% Utilities 340,000 170,000 23,078 99,339 (70,661) 12,006 165,106 (65,767) -40% Vehicle Equipment 676,400 338,200 52,566 375,633 37,433 93,032 404,946 (29,313) -7% Supplies & Services Sub-Total 9,070,383 4,535,192 368,284 2,947,614 (1,587,578) 553,451 3,264,918 (317,304) -10% Total Operating Expenses 41,117,471 21,284,670 3,235,925 18,171,648 (3,113,022) 2,316,687 16,549,025 1,622,623 10% Expenses (Non-Operating): Interest on Long Term Debt 2,604,419 1,302,210 182,523 1,113,000 (189,210) 192,344 1,079,044 33,956 3% Other Expense 12,325 6,163 - 13,543 7,381 10,213 412,996 (399,453) -97% Total Non-Operating Expenses: 2,616,744 1,308,372 182,523 1,126,543 (181,829) 202,557 1,492,040 (365,497) -24% Total Expenses 43,734,215 22,593,042 3,418,448 19,298,191 (3,294,851) 2,519,244 18,041,065 1,257,126 7% Net Position Before Capital Contributions 7,563,422 4,763,937 1,515,208 7,223,144 2,459,207 1,535,380 5,100,016 2,123,128 42% Capital Contributions (Non-Cash Transaction - - - - 210,235 210,235 - - 210,235 0% GASB 34 Compliant) Net Position Before Depreciation 7,563,422 4,763,937 1,515,208 7,433,379 2,669,442 1,535,380 5,100,016 2,333,363 46% Depreciation & Amortization 7,690,000 3,845,000 632,344 3,803,115 (41,885) 532,315 3,193,890 609,225 19% Total Net Position (126,578)$ 918,937$ 882,864$ 3,630,264$ 2,711,327$ 1,003,065$ 1,906,126$ 1,724,138$ 90% Yorba Linda Water District Water Fund For Period Ending December 31, 2023 (With December 31, 2022 for comparison purposes) Page 34 of 124 Annual YTD Dec YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Dec Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Dec 2022) PY Actual $ PY Actual % Revenue (Operating): Sewer Charge Revenue 3,582,947$ 1,791,474$ 300,183$ 1,774,491$ (16,983)$ 249,244$ 1,538,205$ 236,286$ 15.36% Locke Ranch Assessments 410,497 213,458 140,656 232,898 19,440 163,869 203,555 29,343 14.42% Other Operating Revenue 74,230 37,115 4,181 64,660 27,545 4,696 76,376 (11,716) -15.34% Total Operating Revenue: 4,067,674 2,042,047 445,020 2,072,049 30,002 417,809 1,818,136 253,913 13.97% Revenue (Non-Operating): Interest 168,000 84,000 15,711 179,140 95,140 9,539 63,872 115,268 180.47% Other Non-Operating Revenue 16,635 8,318 11,344 8,262 (56) 4,499 71,988 (63,726) -88.52% Total Non-Operating Revenue: 184,635 92,318 27,055 187,402 95,085 14,038 135,860 51,542 37.94% Total Revenue 4,252,309 2,134,364 472,075 2,259,451 125,087 431,847 1,953,996 305,455 15.63% Expenses (Operating): Salary Related Expenses 2,220,753 1,024,963 155,837 839,114 (185,849) 147,609 859,199 (20,085) -2.34% Supplies & Services: Communications 30,236 15,118 1,143 12,342 (2,776) 2,250 10,864 1,478 13.60% Contractual Services 87,379 43,690 6,456 38,517 (5,173) 3,983 40,527 (2,010) -4.96% Data Processing 76,418 38,209 2,856 29,354 (8,855) 3,266 28,172 1,182 4.20% Dues & Memberships 18,792 9,396 672 10,273 877 1,166 9,910 363 3.66% Fees & Permits 54,447 27,224 6,641 24,234 (2,990) 6,870 24,005 229 0.95% Board Election - - - - - - - - 0.00% Insurance 72,750 36,375 6,052 34,649 (1,726) 4,797 26,386 8,263 31.32% Materials 84,955 42,478 793 32,236 (10,242) 5,608 41,675 (9,439) -22.65% District Activities, Emp Recognition 10,272 5,136 225 2,275 (2,861) 257 3,008 (733) -24.37% Maintenance 576,545 288,273 20,097 135,122 (153,151) 3,939 113,064 22,058 19.51% Non-Capital Equipment 74,815 37,408 2,906 33,027 (4,381) 6,543 46,074 (13,047) -28.32% Office Expense 7,132 3,566 978 2,921 (645) 731 3,080 (159) -5.16% Professional Services 152,637 76,319 8,901 59,378 (16,941) 12,690 65,508 (6,130) -9.36% Training 13,497 6,749 (157) 7,007 259 971 8,375 (1,368) -16.33% Travel & Conferences 18,258 9,129 2,670 6,278 (2,851) 1,073 2,550 3,728 146.20% Uncollectible Accounts 2,250 1,125 (193) 1,145 20 2,328 3,644 (2,499) -68.58% Utilities 60,000 30,000 4,073 17,532 (12,468) 2,071 10,347 7,185 69.44% Vehicle Equipment 79,000 39,500 7,759 37,226 (2,274) 1,739 35,786 1,440 4.02% Supplies & Services Sub-Total 1,419,383 709,692 71,872 483,516 (226,176) 60,282 472,975 10,541 2.23% Total Operating Expenses 3,640,136 1,734,654 227,709 1,322,630 (412,024) 207,891 1,332,174 (9,544) -0.72% Expenses (Non-Operating): Other Expense 6,300 3,150 - 5,972 2,822 - 41,197 (35,225) -85.50% Total Non-Operating Expenses: 6,300 3,150 - 5,972 2,822 - 41,197 (35,225) (1) Total Expenses 3,646,436 1,737,804 227,709 1,328,602 (409,202) 207,891 1,373,371 (44,769) -3.26% Net Position Before Capital Contributions 605,873 396,560 244,366 930,849 534,289 223,956 580,625 350,224 60.32% Capital Contributions (Non-Cash Transaction - - - 235,056 235,056 - - 235,056 - GASB 34 Compliant) Net Position Before Depreciation 605,873 396,560 244,366 1,165,905 769,345 223,956 580,625 585,280 100.80% Depreciation & Amortization 1,689,000 844,500 125,660 751,932 (92,568) 125,381 752,287 (355) -0.05% Total Net Position (1,083,127)$ (447,940)$ 118,706$ 413,973$ 861,913$ 98,575$ (171,662)$ 585,635$ 341.16% Yorba Linda Water District Sewer Fund For Period Ending December 31, 2023 (With December 31, 2022 for comparison purposes) Page 35 of 124 ITEM NO. 11.4. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Cash and Investment Reports for Period Ended December 31, 2023 RECOMMENDATION: That the Board of Directors receive and file the Cash and Investment Reports for the Period Ended December 31, 2023. SUMMARY: Government Code Section 530607, et. seq., requires the person delegated to invest funds to make a monthly report of investments to the legislative body. The Cash and Investment Portfolio Report presents the market value and percent yield for all District investments by institution. The Cash and Investment Summary Report includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The Fair Value Measurement Report categorizes investments by the fair value hierarchy established by generally accepted accounting principles. The average portfolio yield for the month ended December 31, 2023 is 5.02% The District's Total Cash and Investment balance as of December 31, 2023 resulted in an overall net increase from that of November 30, 2023 by approximately $2.9 million. This increase is predominantly due to a receipt of an apportionment from the Orange County Tax Collector’s Office in the amount of approximately $1.9 million and a $1 million positive net result between cash inflows and outflows for the reporting period. STRATEGIC PLAN INITIATIVES: G2 4C - Manage cash flow to maximize investment income. ATTACHMENTS: 1. Cash and Investment Reports and Graphs for Period Ended December 31, 2023 Page 36 of 124 Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 1,556,946$ 1,556,946$ Wells Fargo Bank 1,556,946$ 1,556,946$ 2.32% Total 0.00% Depository Account 550,125$ 550,125 US Bank Depository Account (Lennar - Cielo Vista Dev) 2.39% 550,125$ 550,125$ 0.82% 2.39% Money Market Accounts: 1,301,622$ 1,301,622$ US Bank (2017A & 2022A Revenue Bonds) 2.96% 4,552,032 4,552,032 US Bank (Money Market) 5.06% 1,287,768 1,287,768 Public Agency Retirement Svcs. (PARS) 5.99% 7,141,422$ 7,141,422$ 10.66% Total 5.91% California Asset Mgmt. Program Term Investments: 20,000,000$ 20,000,000$ CAMP (Investment Fund) 5.78% 20,000,000$ 20,000,000$ 29.86% 5.78% US Treasury Notes 385,000 385,000 US Treasury Note 12/31/2023 5.39% 374,066 375,000 US Treasury Note 1/31/2024 5.33% 567,076 570,000 US Treasury Note 2/29/2024 5.31% 747,125 755,000 US Treasury Note 3/31/2024 5.32% 784,904 800,000 US Treasury Note 7/31/2024 5.21% 783,624 800,000 US Treasury Note 8/31/2024 5.18% 795,904 800,000 US Treasury Note 9/30/2024 5.10% 796,592 800,000 US Treasury Note 10/31/2024 5.06% 807,027 810,000 US Treasury Note 11/30/2024 5.01% 805,675 810,000 US Treasury Note 12/31/2024 4.97% 809,906 815,000 US Treasury Note 1/31/2025 4.90% 809,522 810,000 US Treasury Note 2/28/2025 4.84% 802,880 810,000 US Treasury Note 3/31/2025 4.78% 767,856 785,000 US Treasury Note 4/30/2025 4.73% 10,037,157$ 10,125,000$ 14.99% Total 5.05% Pooled Investment Accounts: 15,562,617$ 15,562,617$ Local Agency Investment Fund 3.93% 12,125,117 12,125,117 CAMP (Liquidity Fund) 5.57% 27,687,733$ 27,687,733$ 41.34% 4.65% -$ 66,973,384$ 67,061,226$ 100% Total Investments 5.02% 66,973,384 $67,061,226 Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. 12/31/23 Yorba Linda Water District Cash & Investment Portfolio Report December 31, 2023 ________________________________ Delia Lugo, Finance Manager Page 37 of 124 Checking Account:1,556,946$ 2.32% Money Market Accounts:7,141,422$ 10.66% US Treasury Notes:10,037,157$ 14.99% CAMP Term Investments:20,000,000$ 29.86% Pooled Investment Accounts:27,687,733$ 41.34% Depository Account 550,125$ 0.82% Total 66,973,384$ 100.00% Checking Account: 2.32% Money Market  Accounts: 10.66% US Treasury Note   14.99% CAMP Term  Investments: 29.86% Pooled Investment  Accounts: 41.34% Depository  Account 0.82% INVESTMENT BY  CATEGORY BALANCES (AS OF 12‐31‐2023) Checking Account: Money Market Accounts: US Treasury Notes: CAMP Term Investments: Pooled Investment Accounts: Depository Account Page 38 of 124 Below is a chart summarizing the yields as well as terms and maturities for the month of December 2023: Average # of Month Portfolio Days to of 2023 Yield Maturity December 5.02% 1 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 12/31/2022 12/31/2023 Monthly - December 48,034$ 78,295$ Year-to-Date 268,738$ 860,610$ Budget 2022/2023 2023/2024 Interest Budget, December YTD 53,463$ 497,400$ Interest Budget, Annual 106,925$ 994,800$ Interest earned on investments is recorded in the fund that owns the investment. The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: The table below displays the District's Cash and Investment balance of $63.1 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for current Bond transaction and PARS for the pension/OPEB transactions. The estimated number of Days in Cash, based on the preliminary unaudited statements, are 386 for the Un-Restricted Water Reserve and 835 for the Un-Restricted Sewer Reserve balances, as of December 31, 2023. November 2023 % Alloc December 2023 % Alloc Fund Description Balance 11/30/2023 Balance 12/31/2023 Water Operating Reserve 23,693,350$ 46.00% 24,550,982$ 47.00% Water Emergency Reserve 7,636,536 16.70% 7,637,626 14.62% Water Capital Project Reserve 3,899,946 8.59% 6,883,705 13.18% MWD Contingency Reserve - 0.00% - 0.00% Rate Stabilization Reserve 4,438,079 9.69% 4,443,323 8.51% Un-Restricted Water Reserve Balance 39,667,912$ 43,515,636$ Conservation Reserve 73,801$ 0.16% 73,801$ 0.14% Employee Liability Reserve 322,487 0.71% 322,489 0.62% Restricted Reserve Balance 396,288$ 396,290$ Sewer Operating Reserve 3,952,426$ 8.63% 2,659,250$ 5.09% Sewer Emergency Reserve 2,075,290 4.52% 2,084,052 3.99% Sewer Capital Project Reserve 2,284,684 5.00% 3,584,537 6.86% Un-Restricted Sewer Reserve Balance 8,312,399$ 8,327,839$ Total Reserve Balances 48,376,599$ 100.00% 52,239,765$ 100.00% Water Operating 889,315 1,095,888 Sewer Operating 494,016 461,058 1,383,331 1,556,946 Rev. Bond 2017A-Principal & Interest 876 880 Rev. Bond 2022A - Acquisition & COI 12,491,226 11,337,900 Depository Account - Lennar - Cielo Vista Dev 550,123 550,125 Public Agency Retirement Svc. -PARS (Restricted)1,229,519 1,287,768 Total Cash and Investments 64,031,675$ 66,973,384$ Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) YLWD Cash & Investment Summary Report Page 39 of 124 Date Description Amount 07/28/22 Beginning Balance $30,000,000 08/01/22 Requisition #1 Paydown Bank of America Revolving Line of Credit ($5,743,751) Subtotal of Bond Proceeds for YLWD CIP $24,256,249 85% Target Spenddown of Bond Proceeds for CIP by 7/28/2025 $20,617,812 09/28/22 Requistion #2 ‐ Reimburse District for eligible construction costs ($2,725,606) 10/27/22 Requistion #3 ‐ Reimburse District for eligible construction costs ($391,170) 11/29/22 Requistion #4 ‐ Reimburse District for eligible construction costs ($201,714) 01/27/23 Requistion #5 ‐ Reimburse District for eligible construction costs ($167,104) 03/28/23 Requistion #6 ‐ Reimburse District for eligible construction costs ($849,529) 04/26/23 Requistion #7 ‐ Reimburse District for eligible construction costs ($121,844) 05/22/23 Requistion #8 ‐ Reimburse District for eligible construction costs ($1,125,195) 06/26/23 Requistion #9 ‐ Reimburse District for eligible construction costs ($496,613) 07/31/23 Requistion #10 ‐ Reimburse District for eligible construction costs ($1,455,452) 09/07/23 Requistion #11 ‐ Reimburse District for eligible construction costs ($2,346,194) 09/28/23 Requistion #12 ‐ Reimburse District for eligible construction costs ($758,552) 10/26/23 Requistion #13 ‐ Reimburse District for eligible construction costs ($618,807) 11/22/23 Requistion #14 ‐ Reimburse District for eligible construction costs ($1,011,214) 12/21/23 Requistion #15 ‐ Reimburse District for eligible construction costs ($1,196,625) Available Balance of Target Spenddown as of December 31, 2023 $7,152,192 Yorba Linda Water District Financing Authority Revenue Bonds, Series 2022A Activity Summary as of December 31, 2023 $7,152,192 35% $13,465,619  65% Revenue Bonds, Series 2022A Use of Funds to Meet 85%  Spenddown Target  by July 28, 2025   Available Balance as of Reporting Date Total Spenddown to Date Page 40 of 124 Transaction  Date Transaction Description  Water Operating  Pension  Water Operating OPEB   Sewer Operating  Pension   Sewer Operating  OPEB  Account Total  Beginning Balance as of 7/1/23 806,297.48 309,143.73 83,510.06 18,632.96                  1,217,584.23                     7/31/2023 Management Fees (383.70) (147.11) (39.74) (8.87)1,217,004.81                     7/31/2023 Investment Gain/(Loss) 16,775.61 6,431.96 1,737.49 387.67                        1,242,337.54                     8/31/2023 Management Fees (386.64) (148.24) (40.04) (8.93)1,241,753.69                     8/31/2023 Investment Gain/(Loss) (13,805.83) (5,293.32) (1,429.90) (319.04)1,220,905.60                     9/30/2023 Management Fees (397.30) (152.33) (41.15) (9.18)1,220,305.64                     9/30/2023 Investment Gain/(Loss) (26,757.70) (10,259.21) (2,771.36) (618.35)1,179,899.02                     10/31/2023 Management Fees (388.11) (148.81) (40.20) (8.97)1,179,312.93                     10/31/2023 Investment Gain/(Loss) (18,548.02) (7,111.52) (1,921.06) (428.63)1,151,303.70                     11/30/2023 Management Fees (382.18) (146.53) (39.58) (8.83)1,150,726.58                     11/30/2023 Investment Gain/(Loss) 52,177.35 20,005.40 5,404.13 1,205.78 1,229,519.24                     12/31/2023 Management Fees (386.73) (148.28) (40.05) (8.94)1,228,935.24                     12/31/2023 Investment Gain/(Loss) 38,959.48 14,937.51 4,035.12 900.33 1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     1,287,767.68                     Account Balance by Account Type 852,773.71                    326,963.25                       88,323.72                         19,707.00                  1,287,767.68$                   66.22% 25.39% 6.86% 1.53% 100%         Pension OPEB Total Initial Contribution as of 12/28/2017 247,599.00$                   ‐                                      247,599.00                        Additional Contribution 6/26/19 1,105,248.00$              587,339.00                       1,692,587.00                     Total Contributions 1,940,186.00                      Total Distribution to CalPERS (631,392.00)$                ‐                                      (631,392.00)                      Total Distribution to YLWD (337,936.88)$                    (337,936.88)                      Total Gain (or Loss) from Inception 246,670.92$                  111,569.46                       358,240.38                        Total Management Fees from Inception (27,028.49)$                   (14,301.33)                        (41,329.82)                           Balance as of 12/31/2023 941,097.43$                  346,670.25$                     1,287,767.68$                      PARS (Public Agency Retirement Services) Funding Summary for December 31, 2023 Page 41 of 124 ITEM NO. 11.5. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Keri Hollon, Accounting Assistant II SUBJECT: Directors and General Manager Fees and Expenses Report for Second Quarter of Fiscal Year 2023-24 RECOMMENDATION: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for the Second Quarter of Fiscal Year 2023-24. ATTACHMENTS: 1. BOD & GM Summary for Q2 2024 2. Travel & Expense Report Q2 2024 3. BOD & GM Summary for YTD 2024 Page 42 of 124 HAWKINS MILLER DESROCHES LINDSEY BARBRE SUB-TOTAL TOY DAVERT TOTAL BOARD/COMMITTEE MEETINGS 7 0 8 9 7 31 OTHER MEETINGS ATTENDED 4 0 18 16 17 55 TOTAL MEETINGS ATTENDED QTD 11 0 26 25 24 86 86 DIRECTOR FEES QTD $1,650 $0 $3,900 $3,750 $3,600 $12,900 $12,900 MEETING FEES BUDGET QTD $4,500 $4,500 $4,500 $4,500 $4,500 $22,500 $22,500 TRAVEL & CONF. EXPENSES QTD $0 $0 $2,326 $0 $0 $2,326 $2,326 TRAVEL & CONF. BUDGET QTD $1,450 $1,450 $1,450 $1,450 $1,450 $7,250 $7,250 DIR.FEES AND EXPENSES QTD $1,650 $0 $6,226 $3,750 $3,600 $15,226 $15,226 FEES AND EXPENSES BUDGET QTD $5,950 $5,950 $5,950 $5,950 $5,950 $29,750 $29,750 GEN MGR EXPENSES QTD $772 $772 GEN MGR TRAVEL/CONF. BUDGET QTD $2,664 $2,664 ASSISTANT GM EXPENSES QTD $0 $0 ASSISTANT GM TRAVEL/CONF. BUDGET QTD $2,664 $2,664 TOTAL FEES & EXPENSES QTD $1,650 $0 $6,226 $3,750 $3,600 $15,226 $772 $0 $15,998 TOTAL FEES & EXPENSES BUDGET QTD $5,950 $5,950 $5,950 $5,950 $5,950 $29,750 $2,664 $2,664 $35,079 YORBA LINDA WATER DISTRICT FY 24 2ND QUARTER REPORT FROM 10-01-23 TO 12-31-23 DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES Page 43 of 124 Role Name GL Date Trip Date Trip Name Trip Location Conference Lodging Meal Event Mileage Grand Total Director DesRoches, Trudi 11/21/2023 11/15/23-11/18/23 AWWA Rate Setting Seminar San Diego, CA 1,095.00$ 1,095.00$ 11/21/2023 12/7/2023 Best of Yorba Linda Awards Yorba Linda, CA 110.00$ 110.00$ 11/30/2023 11/15/23-11/17/23 AWWA Rate Setting Seminar San Diego, CA 25.47$ 131.00$ 156.47$ 12/26/2023 11/15/23-11/17/23 AWWA Rate Setting Seminar San Diego, CA 924.24$ 40.48$ 964.72$ DesRoches, Trudi Total 1,095.00$ 924.24$ 65.95$ 110.00$ 131.00$ 2,326.19$ Director Total 1,095.00$ 924.24$ 65.95$ 110.00$ 131.00$ 2,326.19$ General Manager Toy, Mark 10/23/2023 10/18/2023 OCWA Luncheon Irvine, CA 30.00$ 30.00$ 12/26/2023 11/28/23-11/30/23 ACWA Conference Indian Wells, CA 520.44$ 12.93$ 533.37$ 12/27/2023 11/28/23-11/30/23 ACWA Conference Indian Wells, CA 79.12$ 129.16$ 208.28$ Toy, Mark Total 520.44$ 92.05$ 30.00$ 129.16$ 771.65$ General Manager Total 520.44$ 92.05$ 30.00$ 129.16$ 771.65$ Grand Total 1,095.00$ 1,444.68$ 158.00$ 140.00$ 260.16$ 3,097.84$ DIRECTOR'S & GENERAL MANAGER'S RECAP OF TRAVEL/CONFERENCE EXPENSES SECOND QUARTER OF FY 24 OCTOBER-DECEMBER 2023 Page 44 of 124 HAWKINS MILLER DESROCHES LINDSEY BARBRE SUB-TOTAL TOY DAVERT TOTAL BOARD/COMMITTEE MEETINGS 12 7 13 13 14 59 OTHER MEETINGS ATTENDED 7 12 25 28 40 112 TOTAL MEETINGS ATTENDED YTD 19 19 38 41 54 171 171 DIRECTOR FEES YTD $2,850 $2,850 $5,700 $6,150 $8,100 $25,650 $25,650 MEETING FEES BUDGET YTD $9,000 $9,000 $9,000 $9,000 $9,000 $45,000 $45,000 TRAVEL & CONF. EXPENSES YTD $0 $0 $2,326 $0 $0 $2,326 $2,326 TRAVEL & CONF. BUDGET YTD $2,900 $2,900 $2,900 $2,900 $2,900 $14,500 $14,500 DIR.FEES AND EXPENSES YTD $2,850 $2,850 $8,026 $6,150 $8,100 $27,976 $27,976 FEES AND EXPENSES BUDGET YTD $11,900 $11,900 $11,900 $11,900 $11,900 $59,500 $59,500 GEN MGR EXPENSES YTD $2,328 $2,328 GEN MGR TRAVEL/CONF. BUDGET YTD $5,329 $5,329 ASSISTANT GM EXPENSES YTD $815 $815 ASSISTANT GM TRAVEL/CONF. BUDGET YTD $5,329 $5,329 TOTAL FEES & EXPENSES YTD $2,850 $2,850 $8,026 $6,150 $8,100 $27,976 $2,328 $815 $31,120 TOTAL FEES & EXPENSES BUDGET YTD $11,900 $11,900 $11,900 $11,900 $11,900 $59,500 $5,329 $5,329 $70,157 YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FY24 YEAR-TO-DATE REPORT FROM 07-01-2023 TO 12-31-2023 Page 45 of 124 ITEM NO. 11.6. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Ammar Tohmeh, Senior Engineer Ethan Nakano, Associate Engineer SUBJECT: Award of Construction Contract for Fiscal Year 2023-24 Pressure Regulating Station Replacement Project RECOMMENDATION: That the Board of Directors award the construction contract for the Fiscal Year 2023-24 Pressure Regulating Station Replacement Project to Big Ben, Inc. for $1,331,526.00, Job Nos. J-2023-46, 48, 49, 51, 52 and 53. SUMMARY: On December 28, 2023, the District solicited bids for the construction of the FY23-24 Pressure Regulating Station Replacement Project. On January 29, 2024, bids were received from seven contractors. Staff reviewed the bid documents and determined that the bid from Brightview Construction, Inc. was non-responsive. A summary of the bids is shown below: No. Contractor Total Bid Amount 1 Big Ben, Inc. $1,331,526.00 2 GCI Construction, Inc. $1,373,500.00 3 T.E. Roberts, Inc. $1,373,677.80 4 Pacific Hydrotech $1,848,110.00 5 W.A. Rasic $1,883,000.00 6 Metro Builders and Engineer's Group $2,229,929.00 7 Brightview Construction, Inc. N/A Staff conducted its due diligence of the bid by Big Ben, Inc. and recommends awarding the construction contract for the FY23-24 Pressure Regulating Station Replacement Project to Big Ben, Inc. for $1,331,526.00. FISCAL IMPACT: Budgeted: Yes Engineering Construction Estimate: $2,100,000 Total Budget: $2,450,000 Page 46 of 124 Job No: J-2023-46, 48, 49, 51, 52 and 53 BACKGROUND: As part of the District's continuing Rehabilitation and Replacement (R&R) Program to replace or rehabilitate aging infrastructure, replacement of Apple Creek, Paseo Del Prado, Willowbrook, and Stone Canyon Pressure Regulating Stations (PRS) is planned as well as the abandonment of Sumac and Wagon Wheel PRS. The aforementioned pressure regulating stations are all near the end of their useful life and experience a multitude of issues including leak history, operational safety hazards, high velocities, and out-of-date construction standards. All the pressure regulating stations in this project scope are identified in the Water Master Plan and the Asset Management Plan, except for Wagon Wheel PRS, which is to be abandoned. The Engineering Construction Estimate was higher than the low bid. The estimate was based on recent and actual construction costs for District PRS projects, and was consistent with the Water Master Plan construction cost estimates. PRIOR RELEVANT BOARD ACTION: On November 21, 2023, the Board approved filing the CEQA Notice of Exemption for this project. STRATEGIC PLAN INITIATIVES: G1-4A & 4B - Address infrastructure needs by updating/implementing the Asset Management Plan (AMP) and Capital Improvement Plan (CIP); G1-6B - Provide a sustainable, adequate water supply to maintain distribution system and its capability to provide 100% groundwater and/or import water to the entire service area. Page 47 of 124 ITEM NO. 11.7. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne Weston, Engineering Manager Reza Afshar, Principal Engineer Ammar Tohmeh, Senior Engineer SUBJECT: Award of Professional Services Agreements for the Multiple Award Task Order Contract for Professional Engineering Services RECOMMENDATION: That the Board of Directors authorize the General Manager to execute five (5) non-exclusive Professional Services Agreements for the Multiple Award Task Order Contract (MATOC) for Professional Engineering Services with Albert A. Webb Associates, Hazen and Sawyer, MKN & Associates, Psomas, and Tetra Tech, Inc. for an initial period of three (3) years and cumulative total not to exceed of $3,000,000. SUMMARY: The District has successfully utilized Professional Services Agreements for On-Call Engineering Services to assist the Engineering Department with completing complex projects. The Engineering Department has identified a need to continue utilizing consultants on an as-needed basis to assist with Capital Improvement Program Projects, Developer Projects, Maintenance Projects, and other miscellaneous projects. On December 13, 2023, the District issued a Request for Proposals for the MATOC for Professional Engineering Services. Twelve (12) proposals were received from consultants in response to the RFP. Engineering Department staff evaluated and scored the proposals and is recommending that the District enter into Professional Services Agreements (PSAs) with five (5) of the consultants, Albert A. Webb Associates, Hazen and Sawyer, MKN & Associates, Psomas, and Tetra Tech, Inc. FISCAL IMPACT: Budgeted: Yes Total Budget for 3 years: $3,000,000 Cost Estimate for 3 years: $3,000,000 Job No: Varies BACKGROUND: The term of the PSA will be three (3) years with the District's option to extend the PSA for up to two Page 48 of 124 (2) additional years. The extension, if exercised by the District, will be in writing and signed by both the District and Consultants. The Not to Exceed amount for the sum total of the PSAs will be $3,000,000. With future Board approval, the District will have the option to increase the Not to Exceed dollar amount by a sum total of $2,000,000. The District does not guarantee a minimum number or dollar amount of Task Orders that may be assigned to each Consultant under the PSA, nor does the District guarantee that each Consultant will be assigned an equal number or dollar amount of Task Orders with respect to other Consultants awarded a PSA. PRIOR RELEVANT BOARD ACTION: The Board of Directors authorized the execution of Professional Services Agreements on January 14, 2020 with five (5) engineering firms for an initial three (3) year period and a Not to Exceed cumulative total of $1,500,000. An additional two (2) year period was authorized for two of the engineering firms, Psomas and Tetra Tech, Inc., with a zero-dollar increase in the cumulative total. The authorized funding for the current PSAs will be exhausted in the next few months. STRATEGIC PLAN INITIATIVES: G1 4A - Address infrastructure needs by updating/implementing Asset Management Plan (AMP); G1 4B - Address infrastructure needs by updating/implementing Capital Improvement Plan (CIP); G3 2B - Address the District's future infrastructure needs; and G3 2C - Evaluate and maintain sustainable operations. Page 49 of 124 ITEM NO. 11.8. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Lori Thompson, Human Resources & Risk Manager SUBJECT: Request for Proposals for Comprehensive Classification and Compensation Study RECOMMENDATION: That the Board of Directors authorize staff to distribute a Request for Proposals (RFP) for a Comprehensive Classification and Compensation Study. BACKGROUND: The District completed a Compensation Study in March 2023. After completion of the Compensation Study, the Board of Directors requested a more in-depth review of the District's job descriptions and salaries as compared to other agencies. At the August 3, 2023 Board meeting, the Board of Directors provided direction that a comprehensive Classification and Compensation Study be completed by January 1, 2025. ATTACHMENTS: 1. RFP for Classification and Compensation Study Page 50 of 124 REQUEST FOR PROPOSALS COMPREHENSIVE CLASSIFICATION & COMPENSATION STUDY Issued February 8, 2024 Response Due: 4:00 p.m., Thursday, March 14, 2024 Page 51 of 124 TABLE OF CONTENTS I. BACKGROUND II. SCOPE OF SERVICES III. TIMELINE IV. PROPOSAL REQUIREMENTS EXHIBIT 1 District Organizational Chart EXHIBIT 2 Sample Professional Services Agreement Page 52 of 124 YORBA LINDA WATER DISTRICT REQUEST FOR PROPOSALS FOR COMPREHENSIVE CLASSIFICATION & COMPENSATION STUDY February 8, 2024 The Yorba Linda Water District (District) seeks the services of a highly qualified consultant, with public sector experience, to work closely with District Management, Human Resources, and assigned staff, to conduct a comprehensive Classification and Compensation Study. The District welcomes proposals from all qualified service providers. I. BACKGROUND The Yorba Linda Water District is a public agency classified as an independent special district, which operates under the authority of Division 12 of the California Water Code. The District has provided water and/or sewer services to residents and businesses in the City of Yorba Linda and portions of Placentia, Brea, Anaheim, and unincorporated Orange County since 1959. The District is governed by a five-member Board of Directors, elected at large from within the District’s service area. The District is dedicated to financial integrity, superior customer service, and protecting public health and the environment. The General Manager administers the day-to-day operations of the District in accordance with policies and procedures established by the Board of Directors. The District’s Board of Directors meets two times a month (on average), on the second and fourth Thursday at 8:30 a.m. Meetings are publicly noticed and citizens are encouraged to attend virtually or in person. The District has approximately eighty-one (81) full-time positions within fifty-six (56) classifications, including six (6) executive classifications. There is one bargaining unit, made up of forty-five (45) employees in twenty-seven (27) job classifications, with an existing MOU expiration date of June 30, 2025. The remainder of District employees, including the executive classifications, are unrepresented. Advancement within specific multi-level classifications is dependent upon an open position, meeting minimum qualifications, job performance, supervisor and/or department head recommendation, and approval of the General Manager. A copy of the District's Organizational Chart is included herein as Exhibit "1". The District completed a compensation study in March 2023; a comprehensive classification and compensation study has not been completed in the recent past. II. SCOPE OF SERVICES A. Objectives The Classification and Compensation Study is intended to address the key objectives outlined below: Page 53 of 124  Attract and retain a highly skilled and capable workforce.  Ensure positions with similar complexity, responsibility, knowledge, skills, and abilities are classified together.  Provide salaries commensurate with assigned duties and experience.  Ensure promotional opportunities are clearly defined, demonstrating a pathway to career progression with recognizable compensation growth.  Offer justifiable pay differential between individual classes.  Review and update established classification titling guidelines to ensure appropriate and consistent titling, both internally and externally.  Maintain competitive salaries and benefits in comparison to other regional government agencies.  Recommend methods by which the District can align its compensation system with industry best practices. B. Classification  Update job descriptions to match distinguishing characteristics, essential job functions, minimum qualifications (knowledge, education, experience, skills, and abilities), working conditions (physical demands, work environment, other relevant circumstances), certifications and licenses. Ensure internal equity and external competitiveness in updated job descriptions and job titles. Conduct interviews and job audits as needed.  Create new job descriptions where needed. Ensure all job descriptions are accurate and compliant with FLSA, EEO, and ADA requirements.  Provide recommendations relative to staff alignments, reporting relationships and organizational structure.  Identify career pathways and promotional opportunities for each classification.  Identify additional opportunities for updating and/or improving the District’s existing classification and compensation system. C. Compensation  Review the District’s job classification and salary schedule; provide feedback and recommendations to optimize alignment with the previously stated objectives. Page 54 of 124  Conduct a comprehensive total compensation survey, using agreed upon comparable agencies. Provide a detailed analysis and assessment of the District’s competitive position as compared to other agencies. Areas to be considered in this survey include, but are not limited to, the following: a. Base salary b. Specialty pay (certificate pay, bilingual pay, stand-by pay, commercial driver’s license pay, etc.) c. Employer paid health insurance contributions (medical, dental, vision) d. Employer paid life and disability benefits e. Retirement benefits f. Leave related benefits (holidays, sick leave, administrative/management leave, personal leave, vacation, family leave, etc.) g. Identify common benefits not currently offered by the District  Recommend appropriate salary ranges for each classification, considering the District’s organizational structure, internal equity and consistency with external titling.  Identify potential compaction issues and outline options for resolution. III. TIMELINE Action Approximate Date District Releases RFP Thursday, February 8, 2024 Last day for Respondents’ Questions* Thursday, February 22, 2024 Proposals Due Thursday, March 14, 2024 Interview Date (tentative) Week of April 9, 2024 Selection/Award Contract Thursday, April 25, 2024 *All questions and/or requests for clarification regarding this RFP must be received in writing, via email, to Lori Thompson, Human Resources & Risk Manager, at lthompson@ylwd.com. Page 55 of 124 IV. PROPOSAL REQUIREMENTS Written proposals must be received by 4:00 p.m. Thursday, March 14, 2024. Proposals must respond in the manner specified in this Request for Proposal, and proposals received by facsimile or email will not be considered. The District reserves the right to reject proposals or waive irregularities in any proposal or proposal procedures. Submit one (1) electronic copy of your proposal and fee schedule no later than the date and time specified on the cover of this RFP to: Lori Thompson Human Resources and Risk Manager lthompson@ylwd.com You may be invited to make an oral presentation. The contract, if any is awarded, will be awarded to the firm(s) whose overall proposal(s) demonstrates the ability to best meet the needs of the District. This will not be judged solely on the price of the contract. By submitting a proposal, the proposer acknowledges and agrees that District reserves the right to investigate the qualifications of all firms under consideration and to confirm any part of the information furnished by any proposer, or to require other evidence of managerial, financial, or technical capabilities considered necessary to fulfill the contract successfully. The proposal must include a Scope of Work, a Cost Proposal for Work, and a Fee Schedule as exhibits.  Pre-Contractual Expenses: The District will not, in any event, be liable for any pre- contractual expenses incurred by the proposer. The proposer will not include any such expenses as part of the price as proposed in response to this RFP.  Contract Award: The District reserves the right to withdraw this RFP without prior notice. Further, the District makes no representations that any agreement will be awarded to any proposer responding to this RFP. The District expressly reserves the right to postpone proposal opening for its convenience and reject any proposals responding to this RFP without indicating reasons for such rejections. The District reserves the right to make its award based on subjective factors and will not be awarding this contract solely based on the lowest bid received. If a contract is awarded, the successful proposer must sign the District's form contract, attached as Exhibit "2" to this RFP.  Insurance Requirements The selected firm shall maintain insurance coverage that is acceptable to YLWD. Endorsements of insurance will be required, naming YLWD, its affiliated organizations, and their respective officers, directors, trustees, employees, agents, consultants, attorneys, successors, and assigns as Additional Insureds for Commercial General Liability and Automobile Liability. Page 56 of 124 Before providing services, the consultant shall provide required Certificates of Insurance and endorsements on approved ACORD forms for the following: a. Commercial General Liability insurance with minimum limits of $2,000,000 per occurrence; $4,000,000 aggregate. b. Automobile Liability insurance with minimum limits of $1,000,000 per accident. c. Workers' Compensation with statutory limits, as required by the Labor Code of the State of California, and employer's liability with minimum limits of $1,000,000 per occurrence. d. Professional Liability/Errors and Omissions insurance with minimum limits of $1,000,000 per occurrence per claim made.  Company Information: a. Provide your home office's address and telephone number and any other office locations. Identify the office location that will provide services to District. b. Federal Tax Identification Number. c. List the principal owners, partners, or officers and include their business addresses and telephone numbers. d. How many years have you been in business? e. What percentage of your clients are public entities, and what percentage are water or sanitation districts? f. Is there pending litigation against your firm? If so, please provide details. g. Does your firm anticipate selling or merging with other firms in the next three (3) years? If yes, please provide details.  Organization and Personnel: a. Provide your firm’s organizational chart b. Provide resumes of personnel who would be assigned to our account. Resumes should include the length of time employed by your firm, any certifications held, and a listing of individual clients. Identify whether a consultant is an employee or subcontractor. Page 57 of 124 c. Include a statement that only consultants approved by the District will be assigned to perform work related to this project, and that they will not be removed or replaced without prior written agreement from District. d. Include a restatement of the scope of work to be performed and outline the methodology to be used to complete the scope, including your understanding of the tasks required by the District. e. Your availability to promptly provide services as stated will be a key factor in the selection process. Describe how your firm will manage the proposed schedule, and what your service standards are for providing timely answers/responses to questions and/or issues that arise during the project.  Insurance: Provide insurance carrier name and limits for each line of insurance. a. Commercial General Liability b. Automobile Liability c. Workers’ Compensation/Employer’s Liability d. Professional Liability/Errors and Omissions  Other Documents and Information: The following documents/information should be included in your proposal package: a. A description of at least three (3) similar public sector assignments, in the State of California, completed within the past five (5) years, including client names, service area, number of employees, and type of agency. Client references, including company name, contact person, title, address, telephone number, and name(s) of staff assigned to the project. Client references must be provided for all staff assigned to the account. b. Sample written report(s) by each consultant proposed to be assigned. Page 58 of 124  Fees: Provide the proposed fees for your services. If on an hourly basis, please provide the following: a. Hourly rate b. Billing increments (e.g. 10 minute increments) c. Travel time (if any charged) d. Confirm fees include all overhead and clerical expenses e. Identify any fees not reflected above.  Authorized Signature: The proposal must be signed and dated by a person authorized to bind your firm and must state the number of days the offer remains valid after date of signature. Page 59 of 124 OctoberEXHIBIT 1 Organizational Chart Effective YLYorba Linda ►� District BLlCJ Water D OF DIRECTORS GENERAL MANAGER HUMAN ASSISTANT ENGINEERING FINANCE RESOURCE5 AHD OPERATIONS GENERAL MANAGER MANAGER RISK MANAGER MANAGER MANAGER HUMAN SENIOR PRINCIPAL SENIOR SENIOR BUDGET RESOURCES PRODUCTION OPERATIONS MAINTENANCE INFORMATION PUBLIC SAFETY SENIOR E7CECUTIVE ENGINEER ENGINEER ENGINEER ANALYST ANALYST SUPERINTENDENT SUPERINTENDENT SUPERINTENDENT SY5TEMS AFFAIRS OFFICER ASSISTANT180ARD {2� ADMINISTRATOR OFFICER SECRETARY WATER QUALITY SENf�R SENIOR RECORDS SENIOR ASSISTANT CUSTOMER ELECTRlCALI INFORMATION PUBLIC ASSOCIATE ACCOUNTING CRASS- FACILITIES OPERATIONS MAINTENANCE ADMINISTRATIVE CONSTRUCTION ENGINEER SERVICE BILLING SCADA SYSTEMS AFFAIRS MANAGEMENT ENGINEER SUPERVISOR CONNECTION MAINTENANCE ASSISTANT WORKER AS5ISTANT INSPECTOR III ADMINISTRATOR TECHNICIAN TECHNICIAN I SPECIALIST ADMINI5TRATOR SPECIALIST WORKER (47 rSENIOR FIELD � PUBLIC REGARDS GIS A5SISTANT CUSTOMER � CHIEF WATER MAINTENANCE TECNICIAN CONSTRUCTION ENGINEER SERVICE REP Ill ACCOUNTRNT CUSTOMER SY5TEM SENIOR WORKER 111 FFAIRS MANAGEMENT II INSPECTOR !! SERVICE MECHANIC {Z� REPIMETER5 OPERATOR {67 INTERN SPECIALIST FIELD � ENGINEERING CUSTOMER ACCOUNTING SENIOR � MAINTENANCE CUSTOMER MECHANIC INTERN SERVICE REP I] ASSISTANT 11 PLANT WORKER II {37 {Z� SERVICE REPJ OPERATOR III {8� METERS II METER PLANT MAINTENANCE READER i OPERATOR Il MECHANIC WORKER I ATQR r LEGEND [Operator-in- Training� � {Z� UNREPRESENTED UNREPRESENTED MANAGEMENT EMPLOYEES BARGAINING UNIT PART TIME EMPLOYEES EMPLOYEES age •1 of 4 ITEM NO. 12.1. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Board of Directors' Compensation RECOMMENDATION: That the Board of Directors adopt Ordinance No. 2024-XX setting compensation for members of the Board pursuant to Section 20200 et seq. of the California Water Code and superseding Ordinance No. 03-01. FISCAL IMPACT: Budget for FY24: $90,000 Expended FY24 as of 12/31/23: $25,650 Expended FY23 as of 06/30/23: $65,100 BACKGROUND: In accordance with California Water Code Sections 20201-20202, the amount of compensation for members of the Board of Directors is currently set at $150 per day for each day's attendance at meetings of the Board and other meetings attended at the request of the Board, not to exceed ten (10) days per calendar month. Section 20202 also allows for an increase in the amount of compensation up to 5% for each calendar year following the operative date of the last adjustment. As the last adjustment was effective March 24, 2003 per Ordinance No. 03-01, the Board of Directors would be eligible for an increase in their current compensation rate up to $397.99 per day as of March 24, 2023. Attached are the results of a compensation survey for comparison to other local water agencies. Following annual review of the compensation rate at the last regular meeting, the Board of Directors took action to increase the Directors' compensation in the amount of 5% from $150.00 to $157.50 for each day's service rendered on the District's behalf, not to exceed 10 days per calendar month, which would become effective no earlier than 60 days from the date of adoption. The 5% increase (1) is subject to a public hearing to consider adoption of an Ordinance to memorialize the increase, and (2) intentionally mirrors the 5% cost of living adjustment (COLA) for District employees in Fiscal Year 2023-24. The Board of Directors also took action to consider increasing the Directors' compensation next year (beginning no sooner than January 1, 2025) in an amount equal to the COLA percentage provided to District employees in Fiscal Year 2024-25 which is currently set at 4%. Pursuant to Water Code Section 20203 and Government Code Section 6066, staff placed legal Page 61 of 124 advertisements announcing the public hearing for today, February 8, 2024 in the Yorba Linda Star on Thursday, January 25, 2024 and Thursday, February 1, 2024. The same notice was posted in the District's lobby window and website. REVIEWED BY GENERAL COUNSEL: Yes ATTACHMENTS: 1. Board of Directors Compensation Survey 2. Ordinance No. 2024-XX - Director Compensation 3. Notice of Public Hearing - Proof of Publication Page 62 of 124 ORANGE COUNTY BOARD OF DIRECTORS PER DIEM SURVEY As of November 13, 2023 Agency Per Diem Meeting Effective Date Maximum Meetings Per Month East Orange County Water District*$175.00 December 2021 10 El Toro Water District $219.00 March 2018 10 Irvine Ranch Water District $331.00 January 2024 10 Mesa Water District $352.00 July 2023 10 Moulton Niguel Water District $280.00 April 2023 10 Municipal Water of Orange County $327.43 January 2020 10 Orange County Water District $330.75 October 2023 10 Santa Margarita Water District $324.00 August 2023 10 South Coast Water District $255.00 August 2019 10 Yorba Linda Water District $150.00 January 2003 10 *Not all Directors accept payment. Page 63 of 124 Ordinance No. 2024-XX Setting Compensation for Members of the Board 1 ORDINANCE NO. 2024-XX ORDINANCE OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING COMPENSATION FOR MEMBERS OF THE BOARD PURSUANT TO SECTION 20200 ET SEQ. OF THE CALIFORNIA WATER CODE AND SUPERSEDING ORDINANCE NO. 03-01 WHEREAS, the Yorba Linda Water District is organized and operates under authority of the County Water District Act, Division 12, commencing with Section 30000 et seq.; and WHEREAS, California Water Code Section 20202 permits water districts, as defined in Section 20200, which includes the Yorba Linda Water District, to increase compensation of members of the Board of Directors in an amount in excess of $100 per day for each day’s attendance at Board meetings and for each day’s service rendered as a Director at the Board’s request, not to exceed ten (10) days per calendar month; and WHEREAS, the increase in compensation authorized pursuant to Section 20202 is limited to five percent (5%) for each calendar year following the operative date of the last adjustment; and WHEREAS, the Board of Directors last took action on Thursday, January 23, 2003, to increase Board member compensation to $150 per day; and WHEREAS, The Board seeks to increase the amount of compensation in accordance with the provisions of Water Code Section 20200 et seq.; and WHEREAS, in accordance with Section 20203 of the Water Code and Section 6066 of the Government Code, a public hearing was held on Thursday, February 8, 2024, at 8:30 a.m., or soon thereafter as practicable, and a notice of said hearing was duly published in the Yorba Linda Star, a newspaper of general circulation, once a week for two weeks on Thursday, January 25, 2024 and Thursday, February 1, 2024. NOW THEREFORE BE IT ORDAINED by the Board of Directors of the Yorba Linda Water District as follows: SECTION 1. The foregoing recitals are true and correct. Page 64 of 124 Ordinance No. 2024-XX Setting Compensation for Members of the Board 2 SECTION 2. Upon and after the effective date of this Ordinance, compensation for members of the Board of Directors of the Yorba Linda Water District shall be $157.50 per day for each day’s attendance at meetings of the Board of Directors and other meetings attended at the request of the Board of Directors. Compensation for any type of service shall not exceed ten (10) days in any calendar month. SECTION 3. Each calendar year, the Board will consider increasing Board member compensation effective each January 1, beginning January 1, 2025, in an amount equal to cost of living adjustment (COLA) percentages provided to District employees not to exceed five percent (5%). SECTION 4. Members of the Board shall receive reimbursement or payment of expenses, according to District policy, rules, and regulations, incurred in the performance of each Director’s duties required or authorized by the Board of Directors. SECTION 5. All ordinances, resolutions, or administrative actions by the Board of Directors, or parts thereof, that are inconsistent with any provision of this Ordinance are hereby superseded only to the extent of such inconsistency. SECTION 6. Pursuant to Section 20204 of the Water Code, this Ordinance shall become effective sixty (60) days from the date of adoption. PASSED AND ADOPTED this 8th day of February 2024, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Trudi DesRoches, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Page 65 of 124 Ordinance No. 2024-XX Setting Compensation for Members of the Board 3 Reviewed and approved as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 66 of 124 Directors Compensation - Page 1 of 1 Yorba Linda Star 1920 Main St. Suite 225 Irvine, California 92614 (714) 796-2209 0011643057 Annie Alexander 1717 E Miraloma Ave Placentia, CA 92870 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Orange County I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not party to or interested in the above-entitled matter. I am the principal clerk of the printer of Yorba Linda Star, a newspaper of general circulation, printed and published in the City of Irvine*, County of Orange County, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of County of Orange County, State of California, under the date of June 15, 1945, Decree No. Pomo C-606. The notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: 01/25/2024, 02/01/2024 I certify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated at Irvine, California On this 1st day of February, 2024. ______________________________ Signature *Yorba Linda Star circulation includes the following cities: [UNKNOWN LIST] Page 67 of 124 ITEM NO. 13.1. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Board of Directors' Committee, Agency, and Intergovernmental Meeting Assignments and Amendments to Policies and Procedures Manual RECOMMENDATION: That the Board of Directors (1) approve the continuation of existing committees and assignments and the proposed agency and governmental meeting assignments for the 2024 calendar year; and (2) adopt Resolution No. 2024-XX amending Section 9.1 of the Board of Directors Policies and Procedures Manual. BACKGROUND: Pursuant to Section 6.1.(B) of the Board of Directors Policies and Procedures Manual (Manual), the newly elected President shall make committee, agency, and intergovernmental meeting assignments, subject to the consent of the Board, following the annual reorganization of the Board of Directors. The attached list includes the Directors' assignment preferences as submitted to President DesRoches. Two Board members will also need to be assigned to serve as Active and Alternate Directors for the Orange County Sanitation District (OC San). The Active Director may also be assigned to one or more OC San committees. OC San Board members are compensated by OC San at a rate of $300.00 per day for meeting attendance (up to six meetings a month with the average being two) and receive no health insurance benefits from OC San. OC San's Chair may be compensated for up to ten meetings per month. Additionally, based on the outcome of the Public Hearing to adopt Ordinance No. 2024-XX regarding Board compensation, the language regarding Directors' Compensation may need to be amended in Section 9.1. of the Manual. Further, the list of sponsoring agencies for which Director attendance is pre-approved in the same section needs to be updated. The attached Resolution addressing these two topics has been prepared for Board consideration. REVIEWED BY GENERAL COUNSEL: Yes STRATEGIC PLAN INITIATIVES: G1 5B - Actively participate with existing water/sewer organizations on regulatory and emerging issues.; G1 5C - Regularly meet with regional agencies on water supply issues (conservation, Page 68 of 124 mandates, forecast). ATTACHMENTS: 1. Board Committee and Intergovernmental Meeting Assignments 2. Section 9.1 - Board Policies and Procedures Manual - REDLINE 3. Resolution No. 2024-XX - Amending Board Policy and Procedures Manual 4. Section 9.1. - Board Policies and Procedures Manual - FINAL DRAFT Page 69 of 124 YORBA LINDA WATER DISTRICT Board of Directors' Committee, Agency and Intergovernmental Meeting Assignments for 2024 JOINT / INTERAGENCY COMMITTEES YLWD / MWDOC / OCWD DesRoches Meets as needed.Lindsey YLWD / City of Yorba Linda Lindsey Meets as needed, generally on quarterly basis.DesRoches YLWD / City of Placentia Lindsey Meets as needed.Hernandez YLWD / City of Brea Barbre Meets as needed.Hernandez YLWD / PYLUSD Hernandez Meets as needed.Barbre OTHER (NON-COMMITTEE) YLWD Financial Review Group Lindsey Meets as needed, for educational purposes only.DesRoches YLWD Capital Improvement Plan Review Group DesRoches Meets as needed in preparation for future Board workshop.Barbre INTERGOVERNMENTAL MEETINGS MWDSC Board of Directors All Directors Meets 2nd Tuesday of the month at 12:00 p.m. mwdh2o.com MWDSC Committees All Directors Meets 2nd Monday and 4th Tuesday of the month, times vary. mwdh2o.com MWDOC Board of Directors Lindsey Meets 1st and 3rd Wednesday of the month at 8:30 a.m.All Directors mwdoc.com MWDOC/OCWD Joint Planning Lindsey / DesRoches Meets 4th Wednesday of Jan, Apr, Jul and Oct at 8:30 a.m.All Directors mwdoc.com OCWD Board of Directors DesRoches Meets 1st and 3rd Wednesday of the Month at 5:30 p.m.All Directors ocwd.com 1 of 3 Page 70 of 124 YORBA LINDA WATER DISTRICT Board of Directors' Committee, Agency and Intergovernmental Meeting Assignments for 2024 INTERGOVERNMENTAL MEETINGS CONTINUED OC Sanitation Board of Directors *Hawkins, Primary Meets 4th Wednesday of the month at 6:00 p.m.Lindsey, Alternate ocsan.gov All Directors YL City Council Directors Rotate Meets 1st and 3rd Tuesday of the month at 6:30 p.m. yorbalindaca.gov YL Planning Commission Hawkins Meets 2nd and 4th Wednesday of the month at 6:30 p.m.All Directors yorbalindaca.gov/206/Planning-Commission Placentia City Council Directors Rotate Meets 1st and 3rd Tuesday of the month at 7:00 p.m.All Directors placentia.org Brea City Council Directors Rotate Meets 1st and 3rd Tuesday of the month at 7:00 p.m.All Directors ci.brea.ca.us PYLUSD Board of Directors Hernandez Varies, usually 1-2 times on Tuesday of the month at 6:00 p.m.All Directors pylusd.org ISDOC All Directors Meets months with 5th Thursday at 11:30 a.m. isdoc.specialdistrict.org WACO All Directors Meets 1st Friday of the month at 7:30 a.m. mwdoc.com/waco OC LAFCO All Directors Meets 2nd Wednesday of the month at 8:15 a.m. oclafco.org ACCOC Board and Committees Barbre / Hernandez Varies All Directors accoc.org OCBC Board and Committees Barbre / Hernandez Varies All Directors ocbc.org 2 of 3 Page 71 of 124 YORBA LINDA WATER DISTRICT Board of Directors' Committee, Agency and Intergovernmental Meeting Assignments for 2024 INTERGOVERNMENTAL MEETINGS CONTINUED CalMutuals Board of Directors Barbre Meets 3rd Tuesday of the month at 2:00 p.m.All Directors calmutuals.org SAWPA Commission All Directors Meets 1st and 3rd Tuesday of the month at 9:30 a.m. sawpa.org OCWA Webinars All Directors Meets 3rd Wednesday of the month at 12:30 p.m. ocwater.org ACWA-JPIA Board of Directors ˟Lindsey, Primary Meets semi-annually in May and November.DesRoches, Alternate acwajpia.com All Directors * Submission of Form 700 for OC San required. Additional committee participation may be necessary and is determined by OC San Board. ˟ Submission of Form 700 for ACWA/JPIA required. 3 of 3 Page 72 of 124 Yorba Linda Water District Board of Directors' Policies and Procedures Manual 9.0 DIRECTORS’ COMPENSATION, BENEFITS, AND EXPENSE REIMBURSEMENT 9.1 Directors’ Compensation A.As of __________________January 23, 2003, compensation for members of the Board shall be $_____$150 per day for each day’s attendance at meetings of the Board, and other meetings attended at the request of the Board, and participation in mandatory training, including reasonable and necessary travel time (see Appendix 1). Compensation for any type of service shall not exceed ten days in any calendar month (District Ord. 2024-XX; WC § 20202; WC § 30507). B.Director attendance at events sponsored by (1) the District or (2) the following organizations shall be preauthorized subject to budget limitations as approved by the Board subject to budget limitations: 1.Association of California Cities – Orange County (ACC-OC) 1.2. Association of California Water Agencies (ACWA) 2.3. Association of California Water Agencies – Joint Powers Insurance Authority (ACWA-JPIA) 3.4. American Water Works Association (AWWA) 5.California Association of Mutual Water Companies (CalMutuals) 4.6. California Association of Sanitation Agencies (CASA) 5.7. California Special Districts Association (CSDA) 6.8. California-Nevada Section of American Water Works Association (CA-NV AWWA) 7.9. Chambers of Commerce 8.City, County and State Governmental Agencies (Including meetings with elected/appointed officials and staff.) 9.10. Colorado River Water Users Association (CRWUA) 10.11. Educational Institutions 11.12. Independent Special Districts of Orange County (ISDOC) 13.Local, State, and Federal Governmental Agencies (Including meetings with elected/appointed officials and staff.) 12.14. Metropolitan Water District of Southern California (MWDSC or MET) 13.15. Municipal Water District of Orange County (MWDOC) 14.16. Non-political Community Service Organizations 17.Orange County Business Council (OCBC) 15.18. Orange County Local Agency Formation Commission (OC LAFCO) 16.19. Orange County Sanitation District (OCSanD) 17.20. Orange County Water Association (OCWA) 18.21. Orange County Water District (OCWD) 22.Santa Ana Watershed Project Authority (SAWPA) 19.23. Special District Leadership Foundation (SDLF) 20.24. Urban Water Institute (UWI) 25.Water Advisory Committee of Orange County (WACO) 21.26. Water Education Foundation (WEF) C.Director attendance at events sponsored by any other organization than those listed above requires preapproval or ratification by a majority vote of the Board in order to be considered as an activity for the purposes of compensation. D.Directors shall complete an Activity Report and Compensation Form (see Exhibit CD) on a monthly basis. Directors have until the 15th day of the following month Page 73 of 124 Yorba Linda Water District Board of Directors' Policies and Procedures Manual to file said reports with the General Manager or his/her designee. If an activity report is not returned by this deadline, no compensation shall be paid to the Director for that reporting period. Exceptions to this provision shall be presented to the Board of Directors for review and approval. E.All activity reports shall be reviewed and approved by the President or the Vice President. The President’s activity report shall be reviewed and approved by the Vice President. F.Increases in compensation are limited to five percent for each calendar year following the operative date of the last adjustment (District Ord. 2024-XX; WC § 20202). The Board shall consider its compensation rate following the reorganization meeting held at the first regular meeting of the Board in OctoberDecember of each year. If the Board recommends an increase in the amount of compensation, an Ordinance shall be considered and adopted by the Board according to the following procedures: 1.A public hearing shall be held prior to adoption of the Ordinance (WC § 20203). 2.Notice of the hearing shall be published in a newspaper of general circulation once a week for two successive weeks prior to the public hearing (GC § 6066). 3.The Ordinance shall become effective 60 days from the date of its final passage (WC § 20204). G.The District does not provide any of its Directors with loans. Page 74 of 124 Resolution No. 2024-XX Amending Board Policies and Procedures Manual 1 RESOLUTION NO. 2024-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING SECTION 9.1 OF THE BOARD OF DIRECTORS POLICIES AND PROCEDURES MANUAL WHEREAS, the Board of Directors of the Yorba Linda Water District routinely reviews and makes revisions to their Policies and Procedures Manual (Manual); and WHEREAS, the Board of Directors desires to amend Section 9.1 of this Manual. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: SECTION 1.That Section 9.1 of the Board of Directors Policies and Procedures Manual is hereby amended as attached hereto and by reference incorporated herein. PASSED AND ADOPTED this 8th day of February 2024 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Trudi DesRoches, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 75 of 124 Yorba Linda Water District Board of Directors' Policies and Procedures Manual 9.0 DIRECTORS’ COMPENSATION, BENEFITS, AND EXPENSE REIMBURSEMENT 9.1 Directors’ Compensation A.As of __________________, compensation for members of the Board shall be $_____ per day for each day’s attendance at meetings of the Board, meetings attended at the request of the Board, and participation in mandatory training, including reasonable and necessary travel time (see Appendix 1). Compensation for any type of service shall not exceed ten days in any calendar month (District Ord. 2024- XX; WC § 20202; WC § 30507). B.Director attendance at events sponsored by (1) the District or (2) the following organizations shall be approved by the Board subject to budget limitations: 1.Association of California Cities – Orange County (ACC-OC) 2.Association of California Water Agencies (ACWA) 3.Association of California Water Agencies – Joint Powers Insurance Authority (ACWA-JPIA) 4.American Water Works Association (AWWA) 5.California Association of Mutual Water Companies (CalMutuals) 6.California Association of Sanitation Agencies (CASA) 7.California Special Districts Association (CSDA) 8.California-Nevada Section of American Water Works Association (CA-NV AWWA) 9.Chambers of Commerce 10.Colorado River Water Users Association (CRWUA) 11.Educational Institutions 12.Independent Special Districts of Orange County (ISDOC) 13.Local, State, and Federal Governmental Agencies (Including meetings with elected/appointed officials and staff.) 14.Metropolitan Water District of Southern California (MWDSC or MET) 15.Municipal Water District of Orange County (MWDOC) 16.Non-political Community Service Organizations 17.Orange County Business Council (OCBC) 18.Orange County Local Agency Formation Commission (OC LAFCO) 19.Orange County Sanitation District (OCSan) 20.Orange County Water Association (OCWA) 21.Orange County Water District (OCWD) 22.Santa Ana Watershed Project Authority (SAWPA) 23.Special District Leadership Foundation (SDLF) 24.Urban Water Institute (UWI) 25.Water Advisory Committee of Orange County (WACO) 26.Water Education Foundation (WEF) C.Director attendance at events sponsored by any other organization than those listed above requires preapproval or ratification by a majority vote of the Board in order to be considered as an activity for the purposes of compensation. D.Directors shall complete an Activity Report and Compensation Form (see Exhibit C) on a monthly basis. Directors have until the 15th day of the following month to file said reports with the General Manager or his/her designee. If an activity report is not returned by this deadline, no compensation shall be paid to the Director for Page 76 of 124 Yorba Linda Water District Board of Directors' Policies and Procedures Manual that reporting period. Exceptions to this provision shall be presented to the Board of Directors for review and approval. E.All activity reports shall be reviewed and approved by the President or the Vice President. The President’s activity report shall be reviewed and approved by the Vice President. F.Increases in compensation are limited to five percent for each calendar year following the operative date of the last adjustment (District Ord. 2024-XX; WC § 20202). The Board shall consider its compensation rate in October of each year. If the Board recommends an increase in the amount of compensation, an Ordinance shall be considered and adopted by the Board according to the following procedures: 1.A public hearing shall be held prior to adoption of the Ordinance (WC § 20203). 2.Notice of the hearing shall be published in a newspaper of general circulation once a week for two successive weeks prior to the public hearing (GC § 6066). 3.The Ordinance shall become effective 60 days from the date of its final passage (WC § 20204). G.The District does not provide any of its Directors with loans. Page 77 of 124 ITEM NO. 14.1. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Director's Reports The Directors will report on their attendance at the following meetings and events: Event Date Time Attendance By MWDOC Board Wed, Jan 3 8:30 AM OCWD Board Wed, Jan 3 5:30 PM DesRoches WACO Fri, Jan 5 7:30 AM Financial Review Group Tue, Jan 9 8:00 AM DesRoches/Lindsey MWDSC Board Tue, Jan 9 12:00 PM Placentia City Council Tue, Jan 9 7:00 PM Hawkins OC LAFCO Commission Wed, Jan 10 8:15 AM SAWPA Commission Tue, Jan 16 9:30 AM CalMutuals Board Tue, Jan 16 2:00 PM Barbre PYLUSD Board Tue, Jan 16 6:00 PM Barbre YL City Council Tue, Jan 16 6:30 PM DesRoches Brea City Council Tue, Jan 16 7:00 PM Hawkins MWDOC Board Wed, Jan 17 8:30 AM OCWA Meeting Wed, Jan 17 11:30 AM Hernandez OCWD Board Wed, Jan 17 5:30 PM DesRoches ACWA Region 10 Membership Meeting Mon, Jan 22 10:00 AM Hernandez Placentia City Council Tue, Jan 23 7:00 PM Hernandez MWDOC/OCWD Joint Planning Committee Wed, Jan 24 8:30 AM Hernandez OC San Board Wed, Jan 24 6:00 PM Hawkins CIP Review Group Thu, Jan 25 8:30 AM DesRoches/Barbre ISDOC Quarterly Meeting Thu, Jan 25 11:30 AM Hernandez YLWD Infrastructure Tour Fri, Jan 26 8:00 AM Barbre/Hernandez MWDOC Water Policy Forum Wed, Jan 31 5:30 PM Barbre/DesRoches/Hawkins/Hernandez Page 78 of 124 ITEM NO. 14.2. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Mark Toy, General Manager SUBJECT: General Manager's Report A brief update on District activities and matters of interest as of January 30, 2024. GENERAL MANAGER On January 16th, 2024, I joined President DesRoches at the Yorba Linda City Council meeting in order to honor Gene Hernandez for his many years of dedicated service to the Yorba Linda City Council. We congratulate Director Hernandez as he begins his new appointment on the Board of Directors of the Yorba Linda Water District. On January 17th, Director Hernandez, Director Barbre, YLWD Engineering Staff and I attended Orange County Water Association’s (OCWA) Industry Insight Presentation in Irvine on Improved Forecasts of Atmospheric Rivers. Dr. Julie Kalansky, Deputy Director for the Center for Western Weather and Water Extremes at the Scripps Institution of Oceanography provided an overview of her agency’s work in Forecast Informed Reservoir Operations (FIRO). Early work on FIRO initiatives began in 2014 at Lake Mendocino in Northern California. FIRO has advanced significantly in the past decade and is now being implemented at Prado Dam – this is important because Prado Dam is major U.S. Army Corps of Engineers water infrastructure that contributes source water via the Santa Ana River for the YLWD service area. The YLWD Board of Directors and key staff will execute a Strategic Planning Workshop (SPW) on February 8th in order to update the FY19 YLWD Strategic Plan. The SPW will be facilitated by Mr. Joseph Sterling from Sterling Insights. Sub-groups are conducting pre-work on the current goals and initiatives in preparation for the February 8th event. AGM Doug Davert and I attended the monthly Municipal Water District of Orange County (MWDOC) Agency Manager’s meeting on January 18th. A major topic of discussion was Advanced Metering Initiative (AMI). MWDOC is hiring a consultant to investigate AMI, and will be sending a survey to its member agencies for a “needs assessment.” The pros and cons of AMI were discussed including the benefits of better leak detection, and the drawbacks of relatively high costs. The YLWD will be the first water agency featured for MWDOC’s “Agency Spotlight” initiative. GM Harvey De La Torre confirmed that the first Agency Spotlight will take place on Wednesday, February 21st at the bi-monthly MWDOC Board meeting – President DesRoches and I plan on attending in- person to give the presentation. Page 79 of 124 Director Hernandez and I participated virtually in the first ACWA Region 10 meeting of 2024. The purpose of the meeting was an orientation for the 2024-2025 ACWA Region 10 Board. Discussion topics included: aging infrastructure, water-use efficiency standards, new regulations and affordability, and workforce initiatives. Committee assignments were made with a primary and alternate designated. I assumed the role as Committee Reporter for the Federal Affairs Committee – my role is to provide updates at membership meetings and facilitate communication between Region 10 and ACWA committees. On January 24th, I attended a Special Districts Round-table hosted by CA State Senator Josh Newman’s staff and Chris Palmer, Senior Public Affairs Field Coordinator for the California Special Districts Association. Attendees included: Inland Empire Utilities Agency, Municipal Water District of Orange County, Orange County Sanitation, Buena Park Library District, and Placentia Library District. Each agency provided a district update followed by a legislative update from Senator Newman’s staff. On January 26th, Director Barbre, my Operations Manager and I conducted a YLWD Infrastructure Tour across our entire service area for our newest Director Gene Hernandez. Finally, on January 30th, I conducted my quarterly town hall with all YLWD employees. The town hall format was the same: Departmental Updates from the Executive Staff, Public Affairs Update on engagements with our partners and stakeholders, a "main topic" with Q & A, service recognition of our 5,10,15, 20, 25 (+) year employees, and announcement of our next Employee of the Quarter. This time, the "main topic" was sharing the most recent employee feedback that I received late last year via anonymous 3x5 cards on SUSTAIN & IMPROVES in YLWD (SUSTAIN: what we are doing well, IMPROVE: what we need to improve). The IMPROVES will form the basis of discussion for our next Taking Care of People (TCOP) committee meeting. At the TCOP, committee members will develop initiative groups to chart a path forward towards solving/mitigating these workplace issues. ADMINISTRATION / IT / PUBLIC AFFAIRS / SAFETY ▪ Attached is a summary of the Governor's Proposed Budget from Townsend Public Affairs. ▪ IT Staff has conducted a thorough assessment of both on-premises and co-location servers for the purpose of budgeting, compliance and cost savings. This assessment addressed the immediate budgeting and compliance needs, and set the foundation for strategic and efficient use of our server infrastructure. ▪ Licensing Compliance: IT Staff is actively mitigating the risk of non-compliance with updating licensing agreements. ▪ Service Contracts: IT Staff is reviewing existing and expiring service contracts for servers, including support and maintenance agreements. ▪ Strategic Planning: IT Staff is providing insight for strategic planning for the upcoming budget year, including potential upgrades, and identifying any underutilized or overburdened resources. ▪ Cost savings: IT is actively exploring opportunities for cost savings through optimization of server resources, investigation of favorable service contracts and volume licensing agreements and ending of service contracts and licensing for retired servers. ▪ 136 Help Desk tickets were received and completed for the period of 12/15/2023 through 1/14/2024. ENGINEERING ▪ The PFAS Water Treatment Plant (WTP) Pre-filter Number 4 requires repair, hydro-testing and recertification. The PFAS WTP contractor (Pacific Hydrotech), and the original equipment Page 80 of 124 supplier (Towner Filtration) have been contracted by the District to perform this work, as the warranty has expired. The work was assigned to Pacific Hydrotech on a sole source basis and to Towner Filtration on a single source basis in compliance with the District’s Purchasing Policy. The pre-filter will be removed in the next few weeks for repairs, and will be re-installed in approximately 2.5 months. The cost for removing and reinstalling the pre-filter by Pacific Hydrotech is $22,000, and the cost for shipping the equipment (to and from Ontario, Canada), repair, testing and re-certification is $27,741.29. The equipment will be restored to “new condition” and will include a one-year warranty. The original installed cost of the pre-filter was approximately $240,000. If the District were to replace the pre-filter unit, the cost would be in excess of this amount. ▪ The Imperial Highway Waterline project is substantially complete and a Notice of Completion is scheduled for the March 14th Board meeting. ▪ A Capital Improvement Program review group meeting was held on January 25th to discuss water and sewer CIP for FY24-25 and projections for 5-Year CIP through FY28-29 in preparation for the Budget workshop on February 22nd. ▪ In mid-January, Engineering and Production staff toured Azusa Light and Water’s 12 mgd surface water Canyon Filtration Plant. Azusa had previously toured our PFAS WTP and reciprocated with a tour of their facility. FINANCE ▪ District 2023 W2 documents have been electronically available to employees and the Board of Directors as of January 18th and 1099 forms have been distributed to the appropriate District vendors. ▪ The required annual State Controller’s Financial Report for 2023 has been filed as of Thursday, January 25th. ▪ Staff has calculated the OCWD Replenishment Assessment for the period covering July 2023 – December 2023, as well as the annual Annexation Fee. Payment for these items will be released on Wednesday, January 31st. The RA payment is $5,182,757 for 8,305 acre feet. The annexation charge is $717,260.79 for 5,300.4 acre feet. ▪ The collection status of the Capital Finance Charge is as follows: Item FY 21-22 FY 22-23 FY 23-24 # CFC Bills Placed on PT 23,888 23,967 24,126 $ Value of CFC Bills Placed on PT $2,579,520 $2,855,981 $3,120,240 $ Collected Through Bills Placed on PT $2,571,538 99.7% $2,841,697 99.5% $1,784,097 57.2% # CFC Invoices in Lieu of PT 444 273 230 $ Value of CFC Invoices $391,412 $372,528 $425,632 $ Collected CFC Via Invoices $375,164 95.8% $349,527 93.8% $330,055 77.5% HUMAN RESOURCES / RISK MANAGEMENT ▪ Recent recruiting/hiring activity is getting the District close to fully-staffed status. As of February 5th, we are 96% staffed, with four remaining vacancies (two part-time). Two Public Affairs vacancies are in the recruitment process, with interviews complete as of January 29th. Recruitment for an Engineering intern will begin in February. Recruitment for one Maintenance Worker III vacancy is anticipated in/around April. Page 81 of 124 OPERATIONS ▪ YLWD is working with OCWD to locate a small-scale pilot PFAS water treatment facility and program at our Richfield Headquarters. The purpose of the pilot is to test and understand how new technologies for PFAS treatment best represent real-world water quality, flow fluctuations, etc. For clarification, the water that goes through the testing facility will NOT be served to our customers as the testing media may or may not yet be approved for use on a public water system. ▪ YLWD continues to pump 100% groundwater throughout the distribution system. We are on track to meet or exceed 85% groundwater production by the end of FY23-24. ▪ John DeCriscio and Doug Davert conducted a site visit to the access road near our Santiago Reservoir and booster station. The city sandbagged and put down plastic on the area in order to prevent further erosion. 1. TPA - Governors Proposed Budget Summary Page 82 of 124 Page 1 M E M O R A N D U M To: Yorba Linda Water District From: Townsend Public Affairs Date: January 10, 2024 Subject: January 2024 Governor’s Proposed Budget State Budget On Wednesday, January 10, Governor Newsom released his 2024-25 State Budget. The Proposed Budget includes an estimated $37.9 billion budget shortfall. According to the Governor, the shortfall can be attributed to two main factors; the substantial decline in the stock market that drove down revenues in 2022 and the unprecedented delay in critical income tax collections. (NOTE: The Governor’s shortfall estimate is significantly lower than the Legislative Analyst’s estimate of $68 billion primarily due to differing accounting measures and more optimistic revenue estimates.) Last year, due to federal tax deadline delays, the majority of the state’s revenues did not arrive until October and November 2023. Which means the correction that would have typically come as part of last year’s May Revision is instead being made in the January 2024 proposed budget release. In June 2023, the state passed a budget that planned accordingly, setting aside record reserves of just under $38 billion. Now, the state faces a budget that must solve last year’s shortfall while adjusting state spending to ensure continued fiscal stability for years to come. While the budget proposal includes various spending reductions and deferrals, it is important to note that the budget situation will continue to evolve over the next few months before its enactment. The Governor’s proposal will be updated in May to reflect changes to tax returns, inflationary pressures, and federal monetary policy that could result in additional spending cuts or the restoration of spending programs. An overview of budget balancing tactics, local government impacts, and basic spending programs is outlined below. Overarching Budget Balancing Tactics and Budget Reserves In order to address the $37.9 billion budget deficit, Governor Newsom is proposing a number of strategies, including utilizing accumulated reserves, reductions in proposed spending, fund shifts, delays in proposed funding, and funding deferrals. Specifically, the January Budget proposes: Page 83 of 124 Page 2 Tapping into Reserves - $13.1 billion • $10.4 billion from the primary state rainy day fund • $1.8 billion from the state’s discretionary rainy day fund • $900 million from the Safety Net Reserve Reductions in General Fund Spending - $8.5 billion • $2.9 billion in climate reductions • $1.2 billion in housing program reductions • $762.5 million in funding for vacant state positions • $500 million from the School Facilities Aid Program • $494 million from the Student Housing Revolving Loan Fund Program • $350 million in reductions to previous legislative project requests • $300 million reduction to the UCLA Institute of Immunology and Immunotherapy • $289 million in reductions to the Middle Class Scholarship Program Revenue/Internal Borrowing - $5.7 billion • $3.8 billion from increasing the Managed Care Organization Tax support for Medi-Cal • $300 million by conforming to federal tax cuts and net operating loss limitations Delays - $5.1 billion • $1 billion from the Transit and Intercity Rail Capital Program • $613 million from the Department of Developmental Services Provider rate reform • $550 million from the Preschool, TK, and Full-day Kindergarten Facilities Grant Program • $400 million from the Clean Energy Reliability Investment Plan • $235 million from the Behavioral Health Bridge Housing Program • $175 million in Vulnerable Community Toxic Clean Up Fund Shifts - $3.4 billion • $1.8 billion in shifts from the General Fund to the Greenhouse Gas Reduction Fund (GGRF) • $1.3 billion in shifts of funding source for state retirement contributions • $100 million from the Unemployment Insurance Interest Payment Deferrals - $2.1 billion • $1.6 billion in June to July Payroll Deferral • $499 million in deferrals to University of California and California State University In addition to the above solutions, the budget includes a $5.7 billion withdrawal from the Proposition 98 reserves to maintain previous support for schools and community colleges. Climate Change The Governor reiterated his commitment to climate change solutions while acknowledging the state’s budget challenges. To address the projected budget shortfall, the Budget proposes $6.7 billion of General Fund solutions in climate-related programs including: $2.9 billion in reductions; Page 84 of 124 Page 3 $1.9 billion in delays of expenditures to future years; $1.8 billion in shifts from the General Fund to other funds, primarily the GGRF. Major climate change provisions in the budget are outlined below: Zero-Emission Vehicles Expenditure Reductions • A reduction of $38.1 million General Fund for various programs including Drayage Trucks and Infrastructure Pilot Project ($23.5 million), ZEV Manufacturing Grants ($7.3 million), and Emerging Opportunities ($7.3 million). The Budget maintains $477 million previously allocated for these programs. Fund Shifts • A shift of $475.3 million General Fund to the GGRF in the current year for various programs including ZEV Fueling Infrastructure Grants ($218.5 million); Drayage Trucks and Infrastructure ($157 million); Transit Buses and Infrastructure ($28.5 million); an d Clean Trucks, Buses and Off-Road Equipment ($71.3 million). Funding Delays • A delay of $600 million GGRF from 2024-25 to 2027-28 across various programs including Clean Cars 4 All and Other Equity Projects ($45 million), ZEV Fueling Infrastructure Grants ($120 million), Equitable At-home Charging ($80 million), Drayage Trucks and Infrastructure ($98 million), Clean Trucks, Buses and Off-Road Equipment ($137 million), Community-Based Plans, Projects and Support/Sustainable Community Strategies ($100 million), and Charter Boats Compliance ($20 million). This delay enables a shift of $600 million General Fund expenditures to the GGRF for other programs. Wildfire and Forest Resilience Expenditure Reductions • A reversion of $100.7 million General Fund for various programs with indirect benefits to fuels treatment or limited-term projects, including Biomass to Hydrogen/Biofuels pilot ($43.5 million), Conservancy Project Implementation in High-Risk Regions ($27.7 million), Home Hardening Pilot ($12 million), Monitoring and Research ($5.7 million), Prescribed Fire and Hand Crews ($5.3 million), Forest Legacy ($3.6 million), and Interagency Forest Data Hub ($2.9 million). Fund Shifts • A shift of $162.5 million General Fund to the GGRF across 2023-24 and 2024-25 to maintain critical investments in direct fuels treatment programs that restore forest health, build wildfire resilience, and reduce Greenhouse Gas emissions from catastrophic wildfires, including Fire Prevention Grants ($82 million shift within 2023-24), Stewardship of State-Owned Land ($34.5 million shift to 2024-25), Department of Forestry and Fire Protection Unit Fire Prevention Projects ($26 million shift to 2024-25), and Regional Forest and Fire Capacity ($20 million shift to 2024-25). Community Resilience Page 85 of 124 Page 4 Regional Climate Resilience • A reversion of $25 million General Fund and a reduction of $50 million for the Regional Climate Resilience Program at the Office of Planning and Research. The Budget maintains $25 million previously allocated to this program. Regional Climate Collaboratives • A reversion of $9.8 million General Fund for Regional Climate Collaboratives Program at the Strategic Growth Council within the Office of Planning and Research. The Budget maintains $10 million previously allocated to this program. Climate Adaptation and Resilience Planning Grants • A reversion of $5 million General Fund for the Climate Adaptation and Resilience Planning Grants at the Office of Planning and Research. The Budget maintains $20 million previously allocated to this program. Coastal Resilience Sea Level Rise • A reversion of $220.9 million General Fund for Sea Level Rise activities. The Budget maintains $333.6 million previously allocated for this program. Coastal Protection and Adaptation • A reversion of $171.1 million General Fund for Coastal Protection and Adaptation activities. The Budget maintains $154.9 million previously allocated for this program. SB 1 Implementation • A reversion of $25 million General Fund and shift of $36.8 million to the GGRF in 2024-25 for implementation of Chapter 236, Statutes of 2021 (SB 1). The Budget maintains $77 million previously allocated for this program. Ocean Protection • A reversion of $35 million General Fund for Ocean Protection funding at the Ocean Protection Council. The Budget maintains $65 million previously allocated for this program. Community Colleges/Education The Governor’s proposed January Budget contains $109.1 billion in funding for Proposition 98. This amount of Proposition 98 funding is $3.65 billion more than was contained in the 2023-24 state budget. As it relates to community colleges, the January Budget proposes funding of $13.56 billion, which represents a 4.4% increase over the 2023-24 budget, while total funding for community colleges (including General Fund and property taxes) increases $355.9 million (1.7%) over the last year. Page 86 of 124 Page 5 Given the relatively flat level of spending, it is not surprising that the January Budget proposal does not contain a significant number of new spending proposals. The major provisions in new funding for community colleges contained in the budget is outlined below: • $69.1 million in ongoing apportionment funding to reflect a 0.76% cost-of-living-adjustment for the Student Centered Funding Formula. • $29.6 million in enrollment growth funding, which reflects a 0.5% growth rate. • $9.3 million for a 0.76% COLA for select categorical programs and the Adult Education Program. • $60 million in funding to expand nursing programs and Bachelor of Science in Nursing partnerships. In addition to these expenditures, the January Budget contains funding solutions that impact community colleges. Specifically, the Governor’s Budget proposes to pull back the $300 million in general fund dollars for the Higher Education Student Housing Program that was scheduled to be included as part of the 2024-25 budget, as well as reverting $194 million of funding that was included for student housing in the 2023-24 budget. The Governor’s January Budget reinforces the Administration’s commitment to pursue a state-level lease revenue bond to help fund housing projects at community colleges. A more specific proposal will be included as part of the May Revise. The Governor’s January Budget proposal would also impact resources for students. The proposed budget would eliminate a proposed $289 million one-time allocation to the Middle Class Scholarship program. Additionally, the Governor’s January Budget proposal does not contain funding to expand the Cal Grant program, as was proposed in the 2021-22 state budget. The Administration will continue to work with the Legislature to determine if the Cal Grant reform can be included as part of the May Revise. Homelessness The Governor’s budget proposal largely maintains previously allocated funds to support homeless programs, with minor deferrals and shifts until the spring months to allow for additional time for negotiations and tax return data to filter in. This includes previously budgeted amounts of $400 million for a third round of encampment resolution grants and $1 billion for a fifth round of Homeless Housing, Assistance, and Prevention (HHAP) grants. Below is a breakdown of key changes proposed for homeless programs: Homeless Housing, Assistance, and Prevention (HHAP) grants While the budget proposes to maintain HHAP program funding for Round 5 of the program at $1 billion, it proposes a delay from 2023-24 to 2025-26 of $260 million General Fund HHAP funding, to more appropriately align with when those funds will be available to eligible applicants. Further, the proposal includes a reversion of $100.6 million General Fund in HHAP administrative set aside as General Fund savings, leaving $51.1 million for program administration. Notably, during his presentation, the Governor once again iterated his concerns with local accountability and meeting tangible homelessness reduction targets in agencies that received Page 87 of 124 Page 6 HHAP allocations in previous funding rounds. The Governor noted that all new discretionary proposals for homelessness will be paused until negotiations take place in the spring months. Once again, the budget proposal did not frame the HHAP program as a stable, ongoing source of funding and did not reference future funding cycles outside of the current Round 5. If the Governor’s mental health bond is successful in March of this year, it is possible that the Administration could have additional cash on hand for local homeless services in the 2025-26 fiscal year. Behavioral Health Bridge Housing The Governor’s proposed budget includes a shift of $265 million from the Mental Health Services Fund appropriated in the 2023 Budget Act to the General Fund in 2024-25 due to lower-than- projected Mental Health Services Act revenues, and a delay of $235 million General Fund originally planned for 2024-25 to 2025-26. Behavioral Health Continuum Infrastructure Program The Governor’s budget proposal includes a delay of $140.4 million General Fund from 2024-25 to 2025-26, for a total of $380.7 million for the final round of grants in 2025-26. Housing In accordance with the tenor of the budget proposal and the need to maintain fiscal prudence in the face of a deficit, key housing programs previously funded in the multi-year budget cycle have proposed reductions and retractions of previously allocated funds to the tune of $1.2 billion. The budget proposal does not include any new funding for housing programs. Recently, the Governor’s Administration has shifted its focus from revenue allocations to housing production and instead to other issues such as the homelessness crisis and local accountability measures to keep pace with housing production goals. Programs that have proposed funding reductions and/or retractions of previously allocated funds include the following: Regional Early Action Planning Grants 2.0 (REAP 2.0) • The Governor’s Budget proposal proposes a reversion of $300 million General Fund for REAP 2.0. Multifamily Housing Program • $250 million reversion of previously allocated General Funds for the Multifamily Housing Program, which proposes to leave $75 million in 2023-24 for this purpose. Foreclosure Intervention Housing Preservation Program • A reduction of $247.5 million General Fund for the Foreclosure Intervention Housing Preservation Program over the next three years ($85 million in 2024-25, $100 million in 2025-26, and $62.5 million in 2026-27). Infill Infrastructure Grant Program • A reversion of $200 million General Fund for the Infill Infrastructure Grant Program, which leaves $25 million in 2023-24 for this purpose. Page 88 of 124 Page 7 CalHome Program • A reversion of $152.5 million General Fund for the CalHome Program. Veteran Housing and Homelessness Prevention Program • A reversion of $50 million General Fund for the Veteran Housing and Homelessness Prevention Program. Housing Navigators • A reduction of $13.7 million General Fund ongoing for Housing Navigators. Health and Human Services The Governor’s January Budget Proposal includes several changes to Health and Human Services funding, including specific allocations for state departments such as the California Department of Health Care Services (DHCS), Department of Social Services (DSS), and the Department of Developmental Services (DDS). While the Governor is proposing to continue investments in several programs, he has also proposed to halt funding for others due to the projected deficit. Details of major health and human services programs and their proposed funding amounts are outlined below and broken out by department: Department of Health Care Services Expanding Medi-Cal to All Income-Eligible Californians The Budget maintains $1.4 billion ($1.2 billion General Fund) in 2023-24, $3.4 billion ($2.9 billion General Fund) in 2024-25, and approximately $3.7 billion ($3.2 billion General Fund) ongoing, inclusive of In-Home Supportive Services (IHSS) costs, to expand full-scope Medi-Cal eligibility to income-eligible adults aged 26 to 49 regardless of immigration status as of January 1, 2024. With this expansion, Medi-Cal will be available to all income-eligible Californians. Behavioral Health Continuum The Budget maintains over $8 billion total funds across various Health and Human Services departments to expand the continuum of behavioral health treatment and infrastructure capacity and transform the system for providing behavioral health services to children and youth. California Advancing and Innovating Medi-Cal (CalAIM): The Budget maintains approximately $2.4 billion ($811.1 million General Fund) in 2024-25 to continue transforming the health care delivery system through CalAIM at DHCS. The Budget also maintains $24.7 million ($8.6 million General Fund) in 2025-26 increasing to $197.9 million ($69.3 million General Fund) at full implementation to allow up to six months of rent or temporary housing to eligible individuals experiencing homelessness or at risk of homelessness transitioning out of institutional care, a correctional facility, the child welfare system, or other transitional housing settings. Counties will also have the option to implement this benefit as part of the BH-CONNECT Demonstration. Managed Care Organization Tax Page 89 of 124 Page 8 Given the projected $37.9 billion budget shortfall, the Administration is seeking early action by the Legislature to request the federal government approve an amendment to increase the tax to achieve $20.9 billion in total funding to the state, an increase of $1.5 billion compared to the approved MCO Tax. Department of Social Services CalWORKS Program The CalWORKs program, California’s version of the federal Temporary Assistance for Needy Families (TANF) program, provides temporary cash assistance to low-income families with children to meet basic needs. The Budget assumes $9.4 billion in total TANF expenditures (state, local, and federal funds) in 2024-25. This amount includes $7 billion for CalWORKs program expenditures and $2.4 billion for other programs. In-Home Supportive Services The Budget includes $24.3 billion ($9 billion General Fund) for the IHSS program in 2024-25. Average monthly caseload in this program is estimated to be 691,075 recipients in 2024-25. The Budget maintains investments in provider wage increases, a permanent provider back-up system, and the full-scope Medi-Cal expansion to IHSS undocumented recipients of all ages including the recent expansion for ages 26 to 49, as of January 1, 2024. Supplemental Security Income The federal SSI program provides a monthly cash benefit to individuals with disabilities, including children and adults, and individuals who are ages 65 and over who meet the program’s income and resource requirements. The Budget includes $3.7 billion General Fund in 2024-25 for the SSI/SSP program, including CAPI. The average monthly caseload in this program is estimated to be 1.1 million recipients in 2024-25. Department of Developmental Services DDS provides individuals with intellectual and developmental disabilities a variety of services that allow them to live and work independently or in supported environments. The Budget includes $15.3 billion ($10 billion General Fund) and estimates that approximately 458,000 individuals will receive services in 2024-25. Healthcare Workforce A delay of $140.1 million General Fund to 2025-26 for the nursing and social work initiatives administered by the Department of Health Care Access and Information. Given lower -than- projected Mental Health Services Act revenue, the Budget also delays $189.4 million Mental Health Services Fund to 2025-26 for the social work initiative, addiction psychiatry fellowships, university and college grants for behavioral health professionals, expanding Master of Social Work slots, and the local psychiatry behavioral health program. Several additional halting of funds will be made for various programs, including for the specialty dental clinic grant program, Healthier at Home Pilot, AIDS Drug Assistance program, and the managed care fund. Page 90 of 124 Page 9 Retail Theft Governor Newsom placed heavy emphasis on Public Safety and particularly on retail theft, the effects on businesses both small and large, and how it affects the safety of California consumers in his proposed 2024-25 state budget. As such, the Governor shared that the Administration’s “Real Public Safety Plan” includes $1.1 Billion in total over a 4-year period. The January Budget Proposal maintains commitments of more than $800 million in multiple programs to improve public safety—including combatting retail theft. Furthermore, the budget maintains local law enforcement grants totaling $255 million over three years. More specifically, over the next four year: • $374 million for organized retail theft • $88 million for opioid and fentanyl interdiction / enforcement • $302 million for community public safety o $90 million for non-profit security grants o $65 million for officer wellness and training o 1,000 new California Highway Patrol Officers • $197 million for gun violence • $127 million for victims’ services Transportation Last year, the Legislature and Governor Newsom made commitments from the state’s General Fund to address impending transit operations funding shortfalls that would result in service and workforce cuts and that would undermine transit agencies’ recovery from the pandemic. Specifically, the Budget Act of 2023-24 included $2 billion for California transit agencies and a promise of $3.1 billion in additional funding over Fiscal Years 2024-25 to 2027-28 to support transit operations and capital project delivery. As part of this agreement, the state created new reporting requirements on regional transportation planning agencies and transit agencies that will govern access to, and use of, this new state funding. To address the projected budget shortfall, the Budget proposes General Fund solutions to achieve a balanced budget. These include $296 million of General Fund reductions, $791 million in fund shifts, and $3.2 billion in delays across various programs. Major transportation provisions included in the budget are outlined below: Formula Transit and Intercity Rail Capital Program • A delay of $1 billion from 2024-25 to 2025-26. • A shift of $261 million from the General Fund to the Greenhouse Gas Reduction Fund. Competitive Transit and Intercity Rail Capital Program • A delay of $2.1 billion from 2021-22 to as late as 2027-28 to align the budget with expenditure schedules. • A shift of $530 million from the General Fund to the Greenhouse Gas Reduction Fund. Active Transportation Page 91 of 124 Page 10 • A $200 million reduction, leaving the Active Transportation Program (ATP) with $850 million of the $1 billion originally included as part of recent one-time transportation investments. To ensure no impact to previously awarded projects, $200 million of ATP funding that was expected to be available for allocation in future cycles will instead be used to backfill the projects awarded in Cycle 6 of ATP. • A $400 million delay from 2021-22 to align the budget with expenditure schedules. Port and Freight Infrastructure Program • A delay of $100 million General Fund from 2021-22 to align the budget with expenditure schedules. Port of Oakland • A reduction of $96 million from 2021-22 leaves $184 million General Fund for Port of Oakland improvements. Water Following the budget surpluses in 2021 and 2022, the State Budget approved $8.7 billion over multiple years to mitigate impacts from extreme drought and flood as well as protect fish and wildlife. The Governor’s 2024-2025 January Budget proposes to maintain $7.3 billion of the previously allocated $8.7 billion over multiple years, but also proposes to cut or delay approximately $900 million in previously allocated or budgeted funds. Major water provisions included in the budget are outlined below: Flood Protection • $93.9 million in one-time funding to support critical flood safety efforts including repairs for storm damaged infrastructure and continuation of flood risk reduction projects. Water Recycling • A retraction of $174.4 million previously allocated to the Water Recycling Funding Program, as well as an additional delay of $100 million until the 2025-2026 Budget. Per- and Polyfluoroalkyl Substances • A retraction of $71.6 million previously allocated for Per- and Polyfluoroalkyl Substances programs, as well as a reduction in current year spending of $30 million. Dam Safety • A retraction of $50 million of previously allocated funding for Dam Safety, resulting in a total of $50 million in the 2024-2025 Budget. Watershed Climate Resilience Programs • A retraction of $88.4 million of previously allocated funding for Watershed Climate Resilience Programs, as well as a reduction in spending over the next two years of $350 million for various climate resiliency programs within the Department of Water Resources and the Wildlife Conservation Board. Page 92 of 124 Page 11 Recently Chaptered Legislation Finally, the Governor generally defers proposing funding to implement recently chaptered legislation. Specifically, the administration defers consideration of budget requests for recently chaptered legislation to the May Revision, given uncertainty about the state revenue situation. As part of this spring’s budget process, the administration commits to working with the Legislature to prioritize which recently chaptered bills should receive implementation funding. Such priorities will be discussed in the budget process in the coming months. Looking Forward Looking forward, the timeline with the Governor’s proposed budget includes the release of the Legislative Analyst’s Office initial review of the Governor’s Proposed Budget. In late January, the Legislature’s budget subcommittees begin their hearings, reviewing and recommending changes to the proposed budget. After a few months of the Legislature’s budget hearings, the Governor must present a revised budget by May 14 based on updated revenue estimates. After negotiations between the Governor and the Legislature, the Legislature’s deadline to pass a balanced budget is June 15 and the Governor needs to approve a final 2024-25 spending plan before the new budget year beginning July 1. Recently Chaptered Legislation. The Governor generally defers proposing funding to implement recently chaptered legislation. (See pages 102-103 of the budget summary.) Specifically, the administration defers consideration of budget requests for recently chaptered legislation to the May Revision, given uncertainty about the state revenue situation. As part of this spring’s budget process, the administration commits to working with the Legislature to prioritize which recently chaptered bills should receive implementation funding. Such priorities will be discussed in the budget process in the coming months. Page 93 of 124 ITEM NO. 16.1. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Meetings from February 9 - March 31, 2024 Event Date Time Attendance By MWDSC Board Tue, Feb 13 12:00 PM PYLUSD Board Tue, Feb 13 6:00 PM Barbre OC LAFCO Commission Wed, Feb 14 8:15 AM YL Planning Commission Wed, Feb 14 6:30 PM Hawkins (As Needed) SAWPA Commission Tue, Feb 20 9:30 AM CalMutuals Board Tue, Feb 20 2:00 PM Barbre Yorba Linda City Council Tue, Feb 20 6:30 PM Lindsey Placentia City Council Tue, Feb 20 7:00 PM Hawkins Brea City Council Tue, Feb 20 7:00 PM DesRoches MWDOC Board Wed, Feb 21 8:30 AM DesRoches OCWA Meeting Wed, Feb 21 11:30 AM Hernandez OCWD Board Wed, Feb 21 5:30 PM DesRoches Board of Directors Regular Meeting Thu, Feb 22 8:30 AM ACWA DC Conference Tue, Feb 27 9:00 AM Barbre/Hernandez ACWA DC Conference Wed, Feb 28 8:00 AM Barbre/Hernandez OC San Board Wed, Feb 28 6:00 PM Hawkins YL Planning Commission Wed, Feb 28 6:30 PM Hawkins (As Needed) WACO Fri, Mar 1 7:30 AM SAWPA Commission Tue, Mar 5 9:30 AM Yorba Linda City Council Tue, Mar 5 6:30 PM Hernandez Brea City Council Tue, Mar 5 7:00 PM Barbre Placentia City Council Tue, Mar 5 7:00 PM Lindsey MWDOC Board Wed, Mar 6 8:30 AM OCWD Board Wed, Mar 6 5:30 PM DesRoches Financial Review Group Tue, Mar 12 8:00 AM DesRoches/Lindsey MWDSC Board Tue, Mar 12 12:00 PM PYLUSD Board Tue, Mar 12 6:00 PM Barbre OC LAFCO Commission Wed, Mar 13 8:15 AM YL Planning Commission Wed, Mar 13 6:30 PM Hawkins (As Needed) Board of Directors Regular Meeting Thu, Mar 14 8:30 AM Page 94 of 124 SAWPA Commission Tue, Mar 19 9:30 AM CalMutuals Board Tue, Mar 19 2:00 PM Barbre Yorba Linda City Council Tue, Mar 19 6:30 PM Hawkins Placentia City Council Tue, Mar 19 7:00 PM DesRoches Brea City Council Tue, Mar 19 7:00 PM Lindsey MWDOC Board Wed, Mar 20 8:30 AM OCWA Meeting Wed, Mar 20 11:30 AM OCWD Board Wed, Mar 20 5:30 PM DesRoches OC San Board Wed, Mar 27 6:00 PM Hawkins YL Planning Commission Wed, Mar 27 6:30 PM Hawkins (As Needed) Board of Directors Regular Meeting Thu, Mar 28 8:30 AM As of January 31, 2024 Page 95 of 124 ITEM NO. 17.2. AGENDA REPORT MEETING DATE: February 8, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Mark Toy, General Manager SUBJECT: Strategic Plan Update Due to logistic limitations, this portion of the meeting will not be broadcast via internet-based service. Interested parties are welcome and invited to attend in person. A strategic plan workshop is scheduled for Thursday, February 8, 2024 in order to revalidate and/or update the current YLWD Strategic Plan adopted in May 2018. A new YLWD Strategic Plan would go into effect upon approval by the Board. Before promulgating new District goals and priorities, the Board may desire to revalidate and/or update the District's mission, vision, and core values as well as the listed goals, initiatives, and strategies. The District will use a "Facilitator" to support the execution of the workshop. ATTACHMENTS: 1. Strategic Plan Workshop Teams 2. Goal 1 - Safe and Reliable Water & Sewer Service 3. Goal 2 - Fiscal Responsibility 4. Goal 3 - Operational Effectiveness 5. Goal 4 - Community Partnerships 6. Goal 5 - Workforce Engagement 7. Strategic Plan Beginning Fiscal Year 2018-19 Page 96 of 124 Strategic Plan Workshop Teams Facilitator: Joe Sterling, Sterling Insights, LLC dba Rainforest Strategies https://rfs-llp.com/ Strategic Plan Coordinator: Paige Appel (Budget Analyst) Goal 1: Safe & Reliable Water Sewer Service Team 1: Director DesRoches Executive Staff Lead: Rosanne Weston (Engineering Manager) Staff: John Brundahl (Production Superintendent) Goal 2: Fiscal Responsibility Team 2: Director Lindsey Executive Staff Lead: Delia Lugo (Finance Manager) Staff: Annie Alexander (Sr. Executive Assistant/ Board Secretary) Goal 3: Operational Effectiveness Team 3: Director Barbre Executive Staff Lead: John DeCriscio (Operations Manager) Staff: Reza Afshar (Principal Engineer) Goal 4: Community Partnership Team 4: Director Hernandez Executive Staff Lead: Doug Davert (AGM) Staff: Joanna Gonzalez (PAO) Goal 5: Workforce Engagement Team 5: Director Hawkins Executive Staff Lead: Lori Thompson (HR & Risk Manager) Executive Staff: Mark Toy (General Manager) Page 97 of 124        FY19 Strategic Plan Review  GOAL 1:  SAFE & RELIABLE WATER AND SEWER SERVICES Service      The ultimate mission is to provide safe and reliable vital services to the public. Our goal is to operate and  maintain all water and wastewater assets for reliable delivery of District services. Effective management  of assets involves monitoring condition of assets and associated risk of failure, planning for future financial  needs, and anticipating uncertainties or changing levels of service.  Initiative 1: Work towards service reliability and efficiencyWater Supply  A. Evaluate all water sources (groundwater, import water, interconnections)   DevelopEvaluate additional well sites and sources    Research desalination and alternative methodologies   Maximize groundwater utilization   Review raw water usage with Municipal Water District, Orange County (MWDOC)    Review/update interconnection agreements  Initiative 2: Explore service boundary opportunitiesRegulations/Legislation  A. Evaluate feasibility of providing additional water services within the region  B. Evaluate feasibility of providing additional wastewater services within the region  C. Evaluate feasibility of providing other professional services within the region   Installation of cellular towers on District properties  Initiative 3: Maintain and update District security and aesthetics, as needed, for:  A. Physical and digital securities  B. Fire protection  C. Landscape maintenance  D. Community outreach and involvement  Initiative 4: Address infrastructure needs by updating/implementing:  A. Asset Management Plan (AMP)  B. Capital Improvement Plan (CIP)  C. Computerized Maintenance Management System (CMMS)  D. Best Management Practices (BMPs) to include evaluation of Remaining Useful Life (RUL)  A. Initiative 5: Comply with all regulatory requirements (e.g. water quality, environmental,  backflow)  B. Monitor emerging water quality and sewer issues and regulationsand wastewater legislation  C. Regularly meet with Regional Agencies (Orange County Water District, MWDOC) on water  supply issues (conservation, mandates, forecast)  A.D. Meet with lobbyists, representatives, and regulators at all levels (local/State/Federal)  B.E. Actively participate with existing water/sewer organizations (Association of California Water  Agencies, American Water Works Association, California Association of Sanitation Agencies, etc.)  on regulatory and emerging issues  Page 98 of 124        C.A. Regularly meet with Regional Agencies (Orange County Water District, MWDOC) on water  supply issues (conservation, mandates, forecast)  D.F. Engage public to address issues with their representatives and maintain community  partnerships with cities and organizations  E.G. Take on leadership role with industry committees      Initiative 6: Provide a sustainable, adequate water supply3: System Reliability and Efficiency  A. Develop/Implement Capital Improvement Program (CIP)  B. Utilize plans and tools to target infrastructure operations, maintenance and upgrades   Water Master Plan (WMP) and Hydraulic Model   Wastewater Master Plan (WWMP) and Hydraulic Model   Asset Management Plan (AMP)   Computerized Maintenance Management System (CMMS)  A. Develop a conceptual treatment facility plan for Perfluoroalkyl Substances (PFOS),  Perfluorooctanoic Acid (PFOA) and emerging contaminants, if necessary  B. Maintain distribution system and its capability to provide 100% groundwater and/or import  water to the entire service area   Geographic Information System (GIS)   Closed Circuit Television (CCTV)  Initiative 4: Security/Aesthetics  A. Review all systems for Physical and digital security  C.B. Develop water shortage contingency planFire protection/hardening standards  Page 99 of 124 VISION Yorba Linda Water District will accomplish our mission to improve the quality of life for those we serve by: Embracing proven technology, improving customer satisfaction, providing efficient and responsive operations, and ensuring reliable infrastructure, and assuring fiscal accuracy and transparency. -------present and future. Goal 2 - Fiscal Responsibility Page 100 of 124 GOAL 2:  FISCAL RESPONSIBILITY  The District strives to maintain financial oversight of all District funds by ensuring conformance with a  clear, well‐documented budget process and annual financial audit. The District has proven to be a good  financial steward and is highly ranked by bond rating agencies. Furthermore, the District holds paramount  its duty to demonstrate effective and responsible use of public funds while responding to ever‐increasing  financial challenges such as inflation and rising costs of goods and services.  The District has established a comprehensive internal control framework that is designed both to protect  the District’s assets from loss, theft, and misuse, and to compile sufficient, reliable information for the  preparation of the District’s financial statements in conformity with Generally Accepted Accounting  Principles (GAAP), Governmental Accounting Standards Board (GASB) standards, and state and federal  regulations.    Initiative 1:  Fiduciary responsibility  A.Maintain Government Finance Officers Association (GFOA) Award Recognition for: Annual Comprehensive Financial Report (ACFR) Popular Annual Financial Report (PAFR) Annual Operating Budget B.Secure a debt covenant ratio greater than 1.25 for contractual compliance requirements, with a preferred rate near/at 2.25 for bond rating purposes C.Retain cash on hand of 365+ days at fiscal year‐end D.Maintain Fitch and Standard & Poor’s bond rating of AA+ or higher E.Annually evaluate and update as necessary, the District’s financial plan and policies to incorporate the District’s Water/Sewer Master Plans (WMP/SMP) and Asset Management Plan (AMP), and ensure that reserves and paydown of unfunded accrued liabilities (UAL) are adequately funded F.Review existing service contracts as appropriate for cost efficiencies G.Manage cash flow to maximize investment income H.Ensure compliance with state and federal grant funding requirements Initiative 2: Financial Transparency  A.Provide all pertinent  financial documents and policies on the District’s website B.Maintain California Special District Association’s (CSDA) Certificate of Transparency to demonstrate the District’s commitment to operating in a transparent and ethical manner Initiative 3: Balanced Budget and Equitable Rates  A.Perform cost of service analysis periodically and appropriately to ensure rates and charges are fair and equitable, including Proposition 218 requirements B.Update rate models as part of the budget process and review and adopt an appropriate fee schedule annually C.Develop an annual budget for Board approval prior to end of May for subsequent fiscal year Page 101 of 124 GOAL 2:  FISCAL RESPONSIBILITY  The District strives to maintain financial oversight of all District funds by ensuring conformance with a  clear, well‐documented budget process and annual financial audit. The District has proven to be a good  financial steward and is highly ranked by bond rating agencies. Furthermore, the District holds paramount  its duty to demonstrate effective and responsible use of public funds while responding to ever‐increasing  financial challenges such as inflation and rising costs of goods and services.  The District has established a comprehensive internal control framework that is designed both to protect  the District’s assets from loss, theft, and misuse, and to compile sufficient, reliable information for the  preparation of the District’s financial statements in conformity with Generally Accepted Accounting  Principles (GAAP), Governmental Accounting Standards Board (GASB) standards, and state and federal  regulations.    Initiative 1: Maintain  Ffiduciary responsibility  A.Comply with Governmental Accounting Standards Board (GASB) regulations B.A. Maintain Government Finance Officers Association (GFOA) Award Recognition for: Comprehensive Annual Comprehensive Financial Report (ACFRCAFR) Popular Annual Financial Report (PAFR) Annual Operating Budget C.B. Secure a debt covenant ratio greater than 1.25 for contractual compliance requirements, with a preferred rate near/at 2.25 for bond rating purposes  C.Retain cash on hand of 365+ days at fiscal year‐end D.Maintain Fitch and Standard & Poor’s bond rating of AA+ or higher E.Annually evaluate and update as necessary, the District’s financial plan and policies to incorporate the District’s Water/Sewer Master Plans (WMP/SMP) and Asset Management Plan (AMP), and  ensure that reserves and paydown of unfunded accrued liabilities (UAL) are adequately funded  F.Review existing service contracts as appropriate for cost efficiencies G.Manage cash flow to maximize investment income H.Ensure compliance with state and federal grant funding requirements D.   E.A. Maintain Fitch and Standard & Poor’s bond rating of AA+ or higher  Page 102 of 124 F.Develop a comprehensive long‐term (multi‐year) financial plan G.Manage reserves by Reviewing Reserve Policy and funding levels annually Analyzing AMP and Water/Sewer Masterplans to determine funding for future asset replacement needs H.Ensuring reserves are responsibly funded Initiative 2: Financial Transparency  A.Provide monthly ProForma documents on District website B.A. Provide all pertinent Post District reports and financial documents and policies on the District’s website with descriptions/purpose  C.B. Maintain California Special District Association’s (CSDA) Certificate of Transparency to demonstrate the District’s commitment to operating in a transparent and ethical manner  D. Pursue new opportunities for greater public access to fiscal information  Initiative 3: Balanced Budget and Equitable Rates  A.Perform cost of service analysis periodically and appropriately to ensure rates and charges are fair and equitable, including Proposition 218 requirements  B.Update rate models as part of the budget process and review and adopt an appropriate fee schedule annually C.Develop an annual budget for Board approval prior to end of May for subsequent fiscal year A.Manage expenses to achieve the strategic goals of the District B.Regularly assess net position and steps to meet strategic goals C.Evaluate rate structures that promote conservation and efficiency D.Review and adopt an appropriate fee schedule on an annual basis E.Update rate models as part of budget process Initiative 4: List sources of funding  A.Identify and develop additional revenue options B.Research and obtain grant/low interest loans or Energy Services Company (ESCO) funding for capital projects C.Manage cash flow to maximize investment income D.Develop an evaluation of debt options; ratio of Pay‐Go and debt financing Page 103 of 124 GOAL 3: The District has provided reliable and trusted service for more than one hundred years. It recognizes the importance of continual improvements to increase operational effectiveness. Initiative 1: Efficiency A.Optimize use of existing technologies (e.g. Computerized Maintenance Management System, SCADA, Meter Reading AMR) B.Explore non-traditional approaches to improve operational efficiencies, turbines, solar, rate evaluations for energy efficiency, TOU pumping C.Evaluate tools and equipment that can improve work performance, safety, and efficiencies (Hydro Excavators, Pipe cutting equipment, Mechanics shop tools and large equipment, vehicle design) D.Continue to develop written departmental standard operating procedures E.Engineering and Operations to form a committee to periodically review water and sewer standards and specifications and modify them as needed to make Operations and maintenance more efficient. Initiative 2: Sustainability A.Regularly update and consistently implement Asset Management Plan, Water and Wastewater Master Plans B.Address the District’s future infrastructure needs C.Maintain industry recommended maintenance programs for valves, fire hydrants, and water and wastewater infrastructure D.Evaluate and maintain sustainable operations •Energy & Water Use Efficiency •Maintain an aggressive leak repair program •Staffing (identify and develop internal staff for promotional opportunities) E. Remain in compliance with all State Water and Wastewater Regulations •Water Quality •Backflow •Water Conservation •Sanitary Sewers Initiative 3: Emergency Preparedness A.Perform annual fire suppression/fire hydrant checks B.Activate semi-annual Emergency Operations Center exercises in preparation for earthquakes, fire, etc. C.Strengthen existing emergency operations partnerships (e.g. Energy Companies, Fire Departments, Police Departments, CAL Warning System) • Quarterly BBQ with partner agencies, Police, Fire, Cities, WEROC • Joint agency exercises and use of YLWD Page 104 of 124 facilities for training D.Establish an Emergency Preparedness team with District staff E. Identify and support the installation of backup systems, fire hardening, security, Cyber Security and redundancy •Emergency Generators •Water line improvements •Cyber Security evaluation/assessment Page 105 of 124 2024 Public Affairs: Strategic Initiatives Goal 4 (D): Community Partnerships As a public agency, the District is expected to demonstrate the prudent use of public funds. The District’s services should provide tangible benefits that are of value to the community. Strengthening existing relationships with key stakeholders, including customers and agency partners, while demonstrating our dedication to transparency in the most professional manner, is paramount. Initiative 1: Brand Recognition A. Current: Provide timely communication, messaging, and strategies a. Recommendation: keep the same b. _________________________________________________________________________________ _________________________________________________________________________________ B. Current: Establish annual tour of District facilities for the community to coincide with Water Awareness Month a. Recommendation: Host a YLWD Open House and/or infrastructure tours for our customers, community partners, and stakeholders to attend and learn about YLWD and the services we provide. b. _________________________________________________________________________________ _________________________________________________________________________________ C. Current: Offer sponsorships for community events, water donation, giveaways, etc. a. Recommendation: Offer partnership opportunities for community events, water donations, giveaways, etc. b. _________________________________________________________________________________ _________________________________________________________________________________ D. Addition: Highlight YLWD staff on our social media platforms and website to humanize our organization and foster a stronger connection with our community. a. _________________________________________________________________________________ _________________________________________________________________________________ Initiative 2: Public Awareness & Engagement A. Current: Frequently update the District website a. Recommendation: keep the same b. _________________________________________________________________________________ _________________________________________________________________________________ B. Current: Publish annual reports and infographics; include water usage, cost, reconciliation, investments, projects, etc. a. Recommendation: keep the same b. _________________________________________________________________________________ _________________________________________________________________________________ C. Current: Design and include informative bill inserts a. Recommendation: Design informative bill inserts and customer notices to communicate and promote YLWD services available (Water Use Efficiency Programs and rebates, Events, Education Programs, and District News) using various communication methods to engage with more customers. b. _________________________________________________________________________________ _________________________________________________________________________________ Page 106 of 124 D. Current: Communicate emerging water quality and sewer issues/regulations a. Recommendation: Communicate District News and emerging water quality and sewer issues/regulations using various communication methods to engage with more customers. b. _________________________________________________________________________________ _________________________________________________________________________________ Page 107 of 124 Board Approved 16 NOV 22 GM TOY GOALS FOR FY 2022/23 FINAL Goals ------ Priority Ensure Safe and Reliable Water and Sewer Service (A) Ensure Fiscal Responsibility (B) Ensure Operational Effectiveness (C) Create Community Partnerships (D) Maintain Workforce Engagement (E) 1. Ensure well production matches Basin Production Percentage (BPP) Develop a plan, and meet 2022 plan, for spending CIP ($30M) Meet deadlines for the Community Service Project (Helicopter- Hydrant) Develop plan for meeting with community groups Improve YLWD organizational climate 2. Establish O&M cost for PFAS operation Stay within the operating budget Match industry KPI for worker safety and strive for zero water and sewer Notices of Violations Add open houses, virtual tours, and speaker bureau to YLWD Secure collective bargaining agreement 3. Develop cyber and physical security plan Secure grant funding Develop AMI plan Final MOUs with sister agencies Plan for succession Current GM Toy Goals Switch to: B3: Secure Grant Funding Secure state and federal grant funding D1: Develop Plan for Meeting with Community Groups Establish/retain strong relationships with key community partners by participating in outreach events D2: Add Open Houses, Virtual Tours, and Speaker Bureau to YLWD Host education and outreach events, including Open House, Tours, and Workshops. Enhance Speakers Bureau for YLWD Professional Development D3: Final MOUs with Sister Agencies REMOVE D3 Page 108 of 124 YLWD Mission: Current: Yorba Linda Water District will provide reliable water and sewer services to protect public health and the environment with financial integrity and superior customer service. Recommendation: Yorba Linda Water District (YLWD) provides reliable water and sewer services to protect public health and the environment with financial integrity and superior customer service. ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ YLWD Vision: Current: Yorba Linda Water District will accomplish its mission to improve the quality of life for those we serve by: Embracing proven technology, improving customer satisfaction, providing efficient and responsive operations, and ensuring reliable infrastructure. Recommendation: _________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ YLWD Core Values: The Yorba Linda Water District Board of Directors and staff are guided in everything we do by the following core values: Integrity: We demonstrate integrity every day by practicing the highest ethical standards and by ensuring that our actions follow our words. Accountability: We acknowledge that both the Board and staff of the District are accountable to the public that we serve, as well as to each other. Responsibility: We take full responsibility for our actions. We maintain a commitment of courtesy, assessment, and resolution with all customer concerns. Transparency: We listen to our customers and communicate openly about our policies, processes, and plans for the future. Teamwork: We work together by sharing information and resources to achieve common goals. Respect: We ensure every voice of the District is treated with dignity and civility; differences are valued and individual abilities and contributions are recognized. Page 109 of 124 YLWD Strategic Plan Jan. 2024 Workforce Engagement The District prides itself on a highly skilled staff of professionals that produce superior quality work through consistent application of established core values. Our employees are the foundation for everything we do. Building on employee engagement is critical to future success, and the recruitment and retention of a high-performance workforce. By providing a positive, innovative work environment, a variety of training and development opportunities, and the best possible facilities and equipment, our employees will be set to successfully accomplish our mission. ➢Initiative One: People A. Foster a positive, innovative organizational climate, recognizing the importance of employee health and wellness B. Establish and maintain an effective performance management program C. Recruit and retain a highly skilled and capable workforce ➢Initiative Two: Training & Development A. Provide opportunities for training, cross-training and development at all levels of the organization, including leadership development, management and supervisor training B. Provide mentorship and internship programs C. Develop a comprehensive succession plan ➢Initiative Three: Facilities & Equipment A. Improve IT infrastructure for maximum efficiency, effectiveness and security B. Maintain and/or upgrade facilities, as needed, to provide functional, positive workspaces C. Maintain and/or upgrade organizational equipment, as needed, to facilitate efficient and safe operations Page 110 of 124 YLYorba Linda WWater District ft,VA - r STRATEGIC PLAN _�� YDRBA LIND Fr �r� t J - - WATER DISTRICT ry ! ;�, ,• � � ' � FY19 'r �' _{ l' lam* .,,•, � � P rY.� - t.YYYI �. ��� �5 � Y�. •� � �,. lam_�yY_.�,f� � 4`�; �. �.q�. � r Page 111 of 124 AMENDMENTS DATE REVISION(S) TITLE/SIGNATURE Page 112 of 124 MISSION Yarba Linda Water District will provide reliable- water and severer services to protect public health and the environment with financial integrity and superior customer service. VISION Yorba Linda hater District will accomplish our mission to improve the quality of life for these we serve by, f. . Embracing proven r technology. iirr� pro�rin � customer satisfaction , providing efficient and p responsive operations, and ensuring reliable . ► '�: Infrastrl..1cturePage113of124 We demons+rafe integrity every Jeer 6y pracficing tke kigkest a+hical standards and 6y ensuring f6af our ac+ions follow our words. ACCOUNTABILITY We ❑Anowledge +ha+ 6o+h +he Board and staff of +lke District are accoun+able to fke public +Ma+ we server as well as to eack o+leer. We take full responsi6ili+y for our ac+ions. We maintain a commitment of tour+esy, assessmenf, and resolution wvifk all customer concerns. TRANSPARENCY We listen to our cusfomers and communicate openly a6ou+ our policies, Processes, and plans for +ke future. i ■ pr We wvorlC togetker 6y sly❑ring informofion and resources +o achieve common goals. RESPECT We ensure every voice of tke Dis+ric+ is frea+ed wvi+h clignity and civili+y, differences are valuecl and individual a6ili+ies and con+ri6utions are recognized., ® Yorba Linda Strategic Plan Water District Effective FY19 Table of Contents Introduction..................................................................................................................................................1 StrategicPlan Framework............................................................................................................................2 GOAL 1: Safe & Reliable Water and Sewer Service....................................................................................3 Initiative 1: Work towards service reliability and efficiency.....................................................................3 Initiative 2: Explore service boundary opportunities................................................................................3 Initiative 3: Maintain and update District security and aesthetics, as needed,for:.................................3 Initiative 4: Address infrastructure needs by updating/implementing:...................................................4 Initiative 5: Monitor emerging water quality and sewer issues and regulations.....................................4 Initiative 6: Provide a sustainable, adequate water supply......................................................................4 GOAL 2: Fiscal Responsibility.......................................................................................................................5 Initiative 1: Maintain fiduciary responsibility...........................................................................................5 Initiative 2: Financial Transparency..........................................................................................................6 Initiative 3: Equitable Rates......................................................................................................................6 Initiative 4: List sources of funding...........................................................................................................6 GOAL 3: Operational Effectiveness..............................................................................................................7 Initiative1: Efficiency................................................................................................................................7 Initiative 2: Sustainability..........................................................................................................................7 Initiative 3: Emergency Preparedness ......................................................................................................7 GOAL4: Community Partnership.................................................................................................................8 Initiative 1: Brand Recognition .................................................................................................................8 Initiative 2: Public Awareness...................................................................................................................8 GOAL 5:Workforce Engagement.................................................................................................................9 Initiative 1: Employee Development.........................................................................................................9 Initiative 2: Employee Relations ...............................................................................................................9 Page 115 of 124 E] Water Yorba Linda Strategic Plan District Effective FY19 Introduction The Yorba Linda Water District (District) is an To address these challenges, the District independent special district serving over 25,000 developed a strategic plan that can be adopted customer connections within the city of Yorba by the Board of Directors and utilized as a Linda and portions of Placentia, Brea, Anaheim budgeting resource, and for forward planning and unincorporated Orange County. In addition purposes. The plan will be integrated into the to supplying water to a predominantly budgetary process to ensure that resources are residential community, the District is also properly allocated to achieve the goals, responsible for maintaining wastewater initiatives, and strategies set forth in this plan. collection systems in its service area. The goals, initiatives, and strategies within this Like many other water agencies in California,the plan, established through the process initiated District is facing a rapidly changing environment by the Board of Directors at their Strategic with unprecedented challenges on many fronts. Planning Workshops, align with the District's These challenges include uncertain State core values, and further its mission and vision. mandates/regulations that have resulted in unpredictable District revenues; water supply Stakeholders who participated in this process and water quality issues; environmental included all five Board Members, the Executive pressures in the Sacramento-San Joaquin Delta Management team and staff members with and Colorado River that threaten our imported varied levels of experience and expertise from water supplies; regulatory mandates that across all District departments. impose stringent permanent conservation levels; urgently needed infrastructure maintenance and upgrades; rising operational costs; increasing media scrutiny; and the impending retirement of many highly knowledgeable staff. Clfy of Brea :.I y of Placentia { i Clry of Yew UndoIL w� Ctly elAnrhe �l Table of Contents Page I 1 Page 116 of 124 E L f • . Linda Strategic Plan District Strategic . The Strategic Plan identifies goals for Effectively addressing challenges and to address. goal opportunities for improvement that al ign with the District's core values,and � own setof initiatives ' further its mission and vision. strategies that would • • successful accomplishment. Strategic •- High-level concepts or plans • .• annually in May • / for accomplishingthe updated accordingly. identified goals. Action stepsfor achieving The following five goals were identified as the the identified initiatives � � and the identified goals. � � � � si .. priorities: Safe&Reliable Service Workforce Fiscal Engagement Responsibility Community Operational Partnership Effectiveness Table Page of E] Water Yorba Linda Strategic Plan District Effective FY19 GOAL 1: Safe & Reliable Water Sewer Services AFAW s . A 1 The ultimate mission is to provide safe and reliable vital services to the public. Our goal is to maintain all water and wastewater assets for reliable delivery of District services. Effective management of assets involves monitoring condition of assets and associated risk, planning for future financial needs, and anticipating uncertainties or changing levels of service. Initiative 1: Work towards service reliability and efficiency A. Evaluate all water sources • Develop additional well sites and sources • Research desalination and alternative methodologies • Review raw water usage with Municipal Water District, Orange County(MWDOC) Initiative 2: Explore service boundary opportunities A. Evaluate feasibility of providing additional water services within the region B. Evaluate feasibility of providing additional wastewater services within the region C. Evaluate feasibility of providing other professional services within the region • Installation of cellular towers on District properties Initiative 3: Maintain and update District security and aesthetics, as needed, for: A. Physical and digital securities B. Fire protection C. Landscape maintenance D. Community outreach and involvement Table of Contents Page 1 3 Page 118 of 124 E] Water Yorba Linda Strategic Plan District Effective FY19 Initiative 4: Address infrastructure needs by updating/implementing: A. Asset Management Plan (AMP) B. Capital Improvement Plan (CIP) C. Computerized Maintenance Management System (CMMS) D. Best Management Practices (BMPs)to include evaluation of Remaining Useful Life (RUL) Initiative 5: Monitor emerging water quality and sewer issues and regulations A. Meet with lobbyists, representatives, and regulators at all levels (local/State/Federal) B. Actively participate with existing water/sewer organizations (Association of California Water Agencies,American Water Works Association, California Association of Sanitation Agencies, etc.) on regulatory and emerging issues C. Regularly meet with Regional Agencies (Orange County Water District, MWDOC) on water supply issues (conservation, mandates, forecast) D. Engage public to address issues with their representatives and maintain community partnerships with cities and organizations E. Take on leadership role with industry committees O p— agreemenG compliance m Grbunal y E rightsbionpunishmenb ' freedom o.E s�'r W� knowledge integrity enforcement bill ;Innocence 9 judge impartiality� education ulp judgment jurisprudence courthouse court m legislative aubhoribytt juridical ` ; government �balance communication uridicai definition reference y congress y paperwork ali archibecture regulation +�legislature 9 �J business prr� E iawyeriustice rightfulness paper w ii 21 crime ideas VErdICG office f ,�advocate o E o a Q Initiative 6: Provide a sustainable, adequate water supply A. Develop a conceptual treatment facility plan for Perfluoroalkyl Substances (PFOS), Perfluorooctanoic Acid (PFOA) and emerging contaminants, if necessary B. Maintain distribution system and its capability to provide 100%groundwater and/or import water to the entire service area C. Develop water shortage contingency plan Table of Contents Pagel 4 Page 119 of 124 E] Water Yorba Linda Strategic Plan District Effective FY19 GOAL 2: 520Y $209 $299 $326 y S55 $69 2 • • a.. S 13Z $127 (3.80�) 4 _ ••- $69s $731 • $761 $817 �.Iiw. .,. • ♦• $320 $319 (0.3%) $323 , a� ♦e... I.r i.J■.wrr... ...w($1AF) rarr I $3,015 $1,050 3.4% $1.078 , Iw : $1,101 $1,136 3.20% 51,16•, .a- S.r*Pw+*A• Onsw. r.. a• 1•• $140 $133 (5.01/03 %I'", � •- . �.. r. . Ra.a. i■ • $8,700 $8,600 (1.10%) a A•,r Atsa. I••►•wa► 3.0% ► •fly• ea a a�/t� rwv+w.ywro>� ..,a% as well as the portion of the CPTile»ae errl arm ••.��.rairN ..00ee rAar V Anwr~4 mr ~w4oft *x:i a,w water demands. In thr ...re. .�►..,.. .. .y Aw~fk @~Mr at.as& W w wftg%W f►•as postaw stamp" me-, t ..,.a +mv, dMw..A• r a am-* .w►eaw pA" dw art L AiW raft lax■a W%,W* V"W.t as-• I a, �.wn •�rerA The District strives to maintain financial oversight of all District funds by ensuring conformance with a clear, well-documented budget process and annual financial audit. The District has proven to be a good financial steward and is highly ranked by bond rating agencies. Furthermore,the District holds paramount its duty to demonstrate effective and responsible use of public funds while responding to ever-increasing financial challenges. The District has established a comprehensive internal control framework that is designed both to protect the District's assets from loss, theft, misuse, and to compile sufficient, reliable information for the preparation of the District's financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Initiative 1: Maintain fiduciary responsibility A. Comply with Governmental Accounting Standards Board (GASB) regulations B. Maintain Government Finance Officers Association (GFOA) Recognition for: • Comprehensive Annual Financial Report(CAFR) • Annual Operating Budget C. Secure a debt covenant ratio greater than 1.25,with preferred rate near/at 2.25 D. Retain cash on hand of 365+days at fiscal year-end E. Maintain Fitch and Standard & Poor's bond rating of AA or higher Table of Contents Page 1 5 Page 120 of 124 E] Water Yorba Linda Strategic Plan District Effective FY19 F. Develop a comprehensive long-term (multi-year) financial plan G. Manage reserves by • Reviewing Reserve Policy and funding levels annually • Analyzing AMP to determine funding for future asset replacement needs • Ensuring reserves are responsibly funded Ap Initiative 2: Financial Transparency A. Provide monthly ProForma documents on District website B. Post District reports and financial documents on website with descriptions/purpose C. Maintain California Special District Association's (CSDA) Certificate of Transparency D. Pursue new opportunities for greater public access to fiscal information Initiative 3: Equitable Rates A. Manage expenses to achieve the strategic goals of the District B. Regularly assess net position and steps to meet strategic goals C. Evaluate rate structures that promote conservation and efficiency D. Review and adopt an appropriate fee schedule on an annual basis E. Update rate models as part of budget process Initiative 4: List sources of funding A. Identify and develop additional revenue options B. Research and obtain grant/low interest loans or Energy Services Company(ESCO)funding for capital projects C. Manage cash flow to maximize investment income D. Develop an evaluation of debt options; ratio of Pay-Go and debt financing Table of Contents Page 1 6 Page 121 of 124 E] Water Yorba Linda Strategic Plan District Effective FY19 GOAL 3: Cperaticnal ; L% i The District has provided reliable and trusted service for more than one hundred years. It recognizes the importance of continual improvements to increase operational effectiveness. Initiative 1: Efficiency A. Evaluate AMI and implementation options to improve the District's operations and allow rate payers to make efficient decisions of their water use B. Optimize use of existing technologies (e.g. Computerized Maintenance Management System) C. Explore non-traditional approaches to improve operational efficiencies Initiative 2: Sustainability A. Regularly update and consistently implement Asset Management Plan B. Address the District's future infrastructure needs C. Evaluate and maintain sustainable operations • Energy& Water Use Efficiency • Staffing Initiative 3: Emergency Preparedness A. Perform annual fire suppression/fire hydrant checks B. Activate semi-annual Emergency Operations Center exercises in preparation for earthquakes, fire, etc. C. Strengthen existing emergency operations partnerships (e.g. Energy Companies, Fire Departments, Police Departments, CAL Warning System) D. Establish an Emergency Preparedness team with District staff Table of Contents Page 1 7 Page 122 of 124 E] Water Yorba Linda Strategic Plan District Effective FY19 GOAL 4: ct 100 4 boo V v R t As a public agency,the District is expected to demonstrate the prudent use of public funds.The District's services should provide tangible benefits that are of value to the community. Strengthening existing relationships with key stakeholders, including customers and agency partners, while demonstrating our dedication to transparency in the most professional manner, is paramount. Initiative 1: Brand Recognition A. Provide timely communication, messaging, and strategies B. Establish annual tour of District facilities for the community to coincide with Water Awareness Month C. Offer sponsorships for community events, water donation, giveaways, etc. Initiative 2: Public Awareness A. Frequently update District website B. Publish annual report and infographics; include water usage, cost, reconciliation, investments, projects, etc. C. Design and include informative bill inserts D. Communicate emerging water quality and sewer issues/regulations Table of Contents Page 18 Page 123 of 124 E] Water Yorba Linda Strategic Plan District Effective FY19 GOAL 5: off The District is known for its highly skilled staff and quality work. In order to retain a highly productive and proficient workforce, maintaining and building on employee engagement in the District will be critical to future success.Greater calls for efficiency and responsiveness will require staff to be flexible and prepared to demonstrate effectiveness and accountability. Initiative 1: Employee Development A. Retain a highly skilled and capable workforce B. Provide pathways to training and career progression C. Develop management skills D. Establish and maintain a comprehensive succession plan (internal promotions) • Review and revise job specifications, as needed Initiative 2: Employee Relations A. Correlate job satisfaction with annual staff satisfaction survey B. Provide mentorship program/internship programs C. Honor staff during Water Professionals Appreciation Week (15Y Sunday of October to Sunday of the following V weekend) eJ D. Maintain a strong District culture and ethics as described in the core values of the Strategic Plan. JOB Table of Contents Page 9 Page 124 of 124