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2024-05-16 - Board of Directors Meeting Agenda Packet
AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, May 16, 2024, 9:30 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/89864904057 Telephone: (669) 444-9171 or (669) 900-6833 Meeting ID: 898 6490 4057 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. Status of Investments Held in Public Agency Retirement System (PARS) Section 115 Trust 7.2. Legislative Update from Townsend Public Affairs 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. 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. 9.1. Minutes of the Board of Directors Meetings Held March 14 - 28, 2024 Recommendation: That the Board of Directors approve the minutes as presented. Page 1 of 170 9.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $3,895,222.08 9.3. Unaudited Financial Statements for Third Quarter of Fiscal Year 2023-24 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements for the Third Quarter ended March 31, 2024 of Fiscal Year 2023-24. 9.4. Cash and Investment Report for the Period Ending March 31, 2024 Recommendation: That the Board of Directors receive and file the Cash and Investment Report for the period ended March 31, 2024. 9.5. Directors and General Manager Fees and Expenses Report for Third 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 Third Quarter of Fiscal Year 2023-24. 9.6. Terms and Conditions for Water and Sewer Service with MBF Foods LLC, d.b.a. Broken Yolk Cafe, 4901 Main Street Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with MBF Food LLC, d.b.a. Broken Yolk Cafe for 4901 Main Street, J-2024-24. 10. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior to formal action. 10.1. Award Professional Services Agreement with Kidman Gagen Law, LLP, for General Counsel Services and Board Guidance Regarding Labor and Employment Legal Services Recommendation: That the Board of Directors (1) approve the Professional Services Agreement with Kidman Gagen Law, LLP, for General Counsel services and determine whether to continue the $2,000 retainer form of compensation or replace it with a blended rate of $270/hour form of compensation; and (2) provide guidance regarding the District's labor and employment legal services. 10.2. Award or Reject Professional Services Agreement for a Comprehensive Classification and Compensation Study Recommendation: That the Board of Directors authorize the General Manager to execute a Professional Services Agreement with Gallagher Benefit Services, Inc. for the completion of a comprehensive Classification and Compensation Study for an amount not to exceed $111,400. Alternatively, the Board of Directors may reject the February 8, 2024 Request for Proposal (RFP) for the completion of a comprehensive classification and compensation study, and direct staff to reissue the RFP under an updated timeline. 10.3. Sponsorship Request for Water Infrastructure Networking Summit Recommendation: That the Board of Directors consider this request and provide direction to staff. Page 2 of 170 11. REPORTS, INFORMATION ITEMS, AND COMMENTS 11.1. Director's Reports 11.2. General Manager's Report 11.3. General Counsel's Report 11.4. Future Agenda Items and Staff Tasks 12. COMMITTEE REPORTS 12.1. Interagency Committee with MWDOC and OCWD DesRoches / Lindsey 12.2. Joint Agency Committee with City of Yorba Linda Lindsey / DesRoches Next meeting scheduled Monday, May 20, 2024 at 11:00 a.m. at Yorba Linda City Hall. 12.3. Joint Agency Committee with City of Placentia Lindsey / Hernandez 12.4. Joint Agency Committee with City of Brea Barbre / Hernandez 12.5. Joint Agency Committee with Placentia-Yorba Linda Unified School District Hernandez / Barbre 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 17 - June 30, 2024 14. 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. 14.1. Conference with Legal Counsel - Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: YLWD v. Alex Winsberg (Orange County Superior Court - Case No. 30-2022-01284814-CU-OR-CJC) 14.2. Public Employee Performance Evaluation Pursuant to Section 54957 of the CA Government Code Title: General Manager 15. ADJOURNMENT 15.1. The next regular Board meeting is scheduled Thursday, May 30, 2024 at 8:30 a.m. and will include a budget workshop followed by a tour of the District's capital improvement projects. 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 Page 3 of 170 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 170 ITEM NO. 7.1. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Status of Investments Held in Public Agency Retirement System (PARS) Section 115 Trust BACKGROUND: Representatives from Public Agency Retirement Services (PARS) will be in attendance to provide an update on the District's PARS 115 Trust Account - OPEB Prefunding Program and Pension Rate Stabilization Program. Please refer to the attached presentation prepared by PARS personnel. ATTACHMENTS: 1. Slide Deck - PARS Client Review Page 5 of 170 Yorba Linda Water District PARS 115 Trust – OPEB Prefunding Program and Pension Rate Stabilization Program Review May 16, 2024 Page 6 of 170 Yorba Linda Water District ▎ 2 Contacts Jennifer Meza, CEBS Senior Manager, Consulting (800) 540-6369 x141 jmeza@pars.org Angela Tang, CEBS Senior Coordinator, Client Services (800) 540-6369 x159 atang@pars.org J. Keith Stribling, CFA Senior Portfolio Manager (949) 966-3373 james.stribling@pfmam.com Page 7 of 170 Yorba Linda Water District ▎ 3 Pars 115 Trust Team Trust Administrator & Consultant 40 Years of Experience (1984-2024) 2,000+ Plans under Administration 1,000+ Public Agency Clients $7.6 B Assets under Administration Investment Manager •Investment sub-advisor to trustee U.S. Bank •Institutional asset management solutions •Fixed income and multi asset portfolios •Active and passive platform options •Customized portfolios (with minimum asset level) 40+ Years of Experience (As of 12/31/23) $229.8 B * Assets under Management & Advisement Trustee •5th largest commercial bank and one of the nation’s largest trustees for Section 115 trusts •Safeguard plan assets •Oversight protection as plan fiduciary •Custodian of assets 161 Years of Experience (1863-2024) $10.3 T Assets under Administration 500+ 115 Trust Clients •Serves as record-keeper, consultant, and central point of contact •Sub-trust accounting •Coordinates all agency services •Monitors plan compliance (IRS/GASB/State Government Code) •Processes contributions/disbursements •Hands-on, dedicated support teams 500 K+ Plan Participants * Assets under management and advisement as of December 31, 2023 includes fixed income and multi asset class portfolios Page 8 of 170 Yorba Linda Water District ▎ 4 Plan Type:IRC Section 115 Irrevocable Exclusive Benefit Trust Trustee Approach:Discretionary Plan Effective Date:October 10, 2017 Plan Administrator:General Manager Current Investment Strategy:Moderate Strategic (Active) Strategy; Pooled Account Summary of Agency’s OPEB Plan AS OF MARCH 31, 2024: Initial Contribution:June 2019: $587,339 Additional Contributions:$0 Total Contributions: $587,339 Disbursements:($337,937) Net Investment Earnings:$125,826 Account Balance:$360,419 Page 9 of 170 Yorba Linda Water District ▎ 5 OPEB Actuarial Results Data from 2022-23 ACFR Measurement Date June 30, 2021 Discount Rate: 6.50% Measurement Date June 30, 2022 Discount Rate: 6.00% Total OPEB Liability (TOL)$3,837,322 $4,107,722 Fiduciary Net Position $3,324,477 $2,878,686 Net OPEB Liability (NOL)$512,845 $1,229,036 Funded Ratio (%)86.6%70.1% Service Cost $69,415 for FY 2020-21 $57,577 for FY 2021-22 Annual Benefit Payments (Pay-as-you-Go) $233,896 for FY 2020-21 $209,069 for FY 2021-22 Rule of thumb: For every one percent increase in the discount rate, the unfunded liability is lowered by 10 -12%. Page 10 of 170 Yorba Linda Water District ▎ 6 -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Ju n - 1 9 Ju n - 2 0 Ju n - 2 1 Ju n - 2 2 Ju n - 2 3 Ju n - 2 4 Plan Year Ending AS OF PLAN YEAR ENDING JUNE 30, 2024 : OPEB Plan Annual Returns *Plan Year Ending June 2019 is based on 1 month of activity **Plan Year Ending June 2024 is based on 9 months of activity Year Returns Jun-19*1.93% Jun-20 3.89% Jun-21 22.35% Jun-22 -12.62% Jun-23 7.51% Jun-24**10.44% Page 11 of 170 Yorba Linda Water District ▎ 7 Plan Type:IRC Section 115 Irrevocable Exclusive Benefit Trust Trustee Approach:Discretionary Plan Effective Date:October 10, 2017 Plan Administrator:General Manager Current Investment Strategy:Moderate Strategic (Active) Strategy; Pooled Account Summary of Agency’s Pension Plan AS OF MARCH 31, 2024: Initial Contribution:December 2017: $247,599 Additional Contributions:$1,105,248 Total Contributions: $1,352,847 Disbursements:($631,392) Net Investment Earnings:$285,372 Account Balance:$978,420 Page 12 of 170 Yorba Linda Water District ▎ 8 Pension Funding Status As of June 30, 2022, Yorba Linda Water District’s CalPERS pension plan is funded as follows*: * Data through 2028-29 from Agency’s latest CalPERS actuarial valuation. Combined Miscellaneous Groups *Valuation as of June 30, 2021 Valuation as of June 30, 2022 Change Actuarial Liability $48.2 M $50.9 M 5.6%↑ Assets $40.7 M $37.1 M 9.0%↓ Unfunded Liability $7.5 M $13.8 M 84.8%↑ Funded Ratio 84.5%72.8%13.8%↓ Employer Contribution Amount $1.5 M $1.6 M 3.9%↑(FY 22-23)(FY 23-24) Employer Contribution Amount – Projected *---$2.1 M 29.4%↑(FY 29-30) Page 13 of 170 Yorba Linda Water District ▎ 9 -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Ju n - 1 8 Ju n - 1 9 Ju n - 2 0 Ju n - 2 1 Ju n - 2 2 Ju n - 2 3 Ju n - 2 4 Plan Year Ending PENSION Plan Annual Returns *Plan Year Ending June 2018 is based on 7 months of activity **Plan Year Ending June 2024 is based on 9 months of activity AS OF PLAN YEAR ENDING JUNE 30, 2024 : Year Returns Jun-18*0.10% Jun-19 6.03% Jun-20 3.89% Jun-21 22.25% Jun-22 -12.87% Jun-23 7.51% Jun-24**10.44% Page 14 of 170 PARS/115P Moderate Strategic Blend Client Management Team PFM Asset Management LLC 1 California Street Suite 1000 San Francisco, CA 94111 1735 Market Street 43rd Floor Philadelphia, PA 19103 Investment Performance Review For the Quarter Ended March 31, 2024 PFM Asset Management Yorba Linda Water District ▎ 10 Page 15 of 170 Financial Markets & Investment Strategy Review Yorba Linda Water District ▎ 11 Page 16 of 170 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years DOMESTIC EQUITY S&P 500 10.56% 10.56% 29.88% 11.49% 15.05% 14.09% 12.96% Russell 3000 Index 10.02% 10.02% 29.29% 9.78% 14.34% 13.45% 12.33% Russell 1000 Value Index 8.99% 8.99% 20.27% 8.11% 10.31% 9.16% 9.01% Russell 1000 Index 10.30% 10.30% 29.87% 10.45% 14.76% 13.85% 12.68% Russell 1000 Growth Index 11.41% 11.41% 39.00% 12.50% 18.52% 18.06% 15.98% Russell Midcap Index 8.60% 8.60% 22.35% 6.07% 11.10% 10.58% 9.95% Russell 2000 Value Index 2.90% 2.90% 18.75% 2.22% 8.17% 6.55% 6.87% Russell 2000 Index 5.18% 5.18% 19.71% -0.10% 8.10% 7.73% 7.58% Russell 2000 Growth Index 7.58% 7.58% 20.35% -2.68% 7.38% 8.40% 7.89% INTERNATIONAL EQUITY MSCI EAFE (Net)5.78% 5.78% 15.32% 4.78% 7.33% 6.70% 4.80% MSCI AC World Index (Net)8.20% 8.20% 23.22% 6.96% 10.92% 10.23% 8.66% MSCI AC World ex USA (Net)4.69% 4.69% 13.26% 1.94% 5.97% 5.88% 4.25% MSCI AC World ex USA Small Cap (Net)2.11% 2.11% 12.80% 0.38% 6.24% 5.74% 4.74% MSCI EM (Net)2.37% 2.37% 8.15% -5.05% 2.22% 3.72% 2.95% ALTERNATIVES FTSE NAREIT Equity REIT Index -0.20% -0.20% 10.54% 4.14% 4.15% 5.08% 6.61% FTSE EPRA/NAREIT Developed Index -1.05% -1.05% 8.57% -0.19% 0.75% 3.08% 4.00% FTSE Global Core Infrastructure 50/50 Index (Net)1.55% 1.55% 3.22% 2.91% 3.78% 5.27% 5.60% Bloomberg Commodity Index Total Return 2.19% 2.19% -0.56% 9.11% 6.38% 4.26% -1.56% FIXED INCOME Blmbg. U.S. Aggregate -0.78% -0.78% 1.70% -2.46% 0.36% 1.06% 1.54% Blmbg. U.S. Government/Credit -0.72% -0.72% 1.74% -2.35% 0.62% 1.27% 1.70% Blmbg. Intermed. U.S. Government/Credit -0.15% -0.15% 2.69% -1.06% 1.09% 1.43% 1.61% Blmbg. U.S. Treasury: 1-3 Year 0.28% 0.28% 2.94% 0.01% 1.13% 1.20% 1.06% ICE BofAML Global High Yield Constrained (USD)1.47% 1.47% 11.09% 0.43% 3.12% 3.63% 3.52% Blmbg. Global Aggregate Ex USD -3.21% -3.21% -0.71% -6.53% -2.50% -0.82% -1.38% JPM EMBI Global Diversified 2.04% 2.04% 11.28% -1.39% 0.71% 1.71% 3.05% CASH EQUIVALENT 90 Day U.S. Treasury Bill 1.30% 1.30% 5.35% 2.65% 2.06% 1.94% 1.41% Source: Investment Metrics. Returns are expressed as percentages. Please refer to the last page of this document for important disclosures relating to this material. Yorba Linda Water District ▎ 12 Page 17 of 170 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management CommentsOur Q2 2024 Investment OutlookAsset Class •Fed’s guidance of higher economic growth and moderating inflation a positive but recent uptick in inflation data warrants attention. Markets reacted positively to March Fed projections with S&P hitting all time high. •Rising valuations are supported by improving earnings growth expectations but any negative news could lead to a pullback. •Mid-and small-cap valuations are attractive and would benefit as investor sentiment/earnings growth expectations improve. Exposure to interest rate sensitive sectors such as regional banks remains a concern. U.S. Equities Large-Caps Mid-Caps Small-Caps •International equities continue to trade at a discount to U.S. equities but slowing economic growth in Europe and China is a headwind. •EM equities trade at attractive valuations relative to developed market equities. We remain cautious on China and are closely monitoring the recent change in investor sentiment towards Chinese equities. •International small-caps provide exposure to foreign local economies, but uneven economic growth and geopolitical tensions leads us to be at neutral positioning. •Overall, we maintain neutral exposure to international equities. Non-U.S. Equities Developed Markets Emerging Markets International Small-Caps •The Fed’s recent guidance points towards soft-landing scenario with three expected rate cuts in 2024. Yields at short-end of the curve look attractive even as long-term yields fell back from the recent highs. We expect a further fall in yields as inflation continues to moderate. •Credit markets remain attractive due to strong corporate fundamentals. We continue to seek diversified credit exposure and are closely watching signs for any distress in the corporate credit space. Fixed Income Long-Duration, Interest Rate-Sensitive Sectors Credit-Sensitive Sectors •Higher interest rates and rising foreclosure for office buildings are headwinds for private real estate returns. Public REITs have recovered from the lows in 2023. We expect this trend to continue helped by falling rates and economic soft landing. •Private equity is facing headwinds from higher leverage costs and falling valuations. Debt strategies may benefit from banks’ tighter lending standards as long as default rates remain low. •Increased infrastructure investment in the U.S. post the passing of Jobs Act and Chips Act a positive for infrastructure. Transition to renewable energy is another tailwind for both private and listed infrastructure while higher interest rates are headwinds. Alternatives Real Estate Private Equity Private Debt Infrastructure Current outlook Outlook one quarter ago PositiveSlightly Positive NeutralSlightly Negative Negative Investment Strategy Overview The view expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution (March 31, 2024) and are subject to change. Yorba Linda Water District ▎ 13 Page 18 of 170 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2024 Multi-Asset Class Management Inflation: •Inflation continues to moderate but has proven to be stickier than expected, predominantly in housing and service sectors. Globally, inflation has continued to moderate. •Recent upside surprises in the U.S. warrants closer attention but expect moderating trend to continue. Economic Growth: •U.S. economic growth is led by consumers and supported by a robust labor market. Recent recovery in manufacturing activity along with continued strength in services a tailwind. •Economic growth outside U.S. remain mixed with slower growth projected in Eurozone. Monetary Policy: •Recent Fed guidance implies three rate cuts in 2024 and points to an economic soft landing but path of rate cuts remains uncertain. •Globally, central banks are nearing the start of rate cutting cycle in reaction to moderating inflation with the Swiss central bank being the first to cut. Labor Markets: •The labor market remains strong, but we have seen cooling conditions from the extreme levels of 2022. •Strong wage increases reflect a competitive labor market and is a key focus for monetary policy moving forward. Consumer Spending (U.S.): •Consumer confidence reached a multi-year high following strong wage growth, a resilient labor market, and moderating inflation. •Hiring, wage growth, and increased hours worked have all played a role in boosting personal income and spending and we expect consumer strength to continue as labor markets remain healthy. Financial Conditions: •Financial conditions continue to ease as the Fed pivot remains in play alongside strength in various economic indicators. •With interest rates remaining elevated, we continue to focus on identifying pockets of stress within financial markets. Political Risks: •Geopolitical risks continue to remain elevated. U.S./China tensions, Russia/Ukraine war, Israel/Hamas conflict, China’s moves in South China Sea and Taiwan Strait further add to risks. •Elections across the globe could also lead to short- term volatility. Valuations: •U.S. equity and credit markets have experienced a run up in valuations amid strong corporate fundamentals and continued economic growth. •International equities look attractive but continued economic and geopolitical uncertainty is leading to increased volatility. Corporate Fundamentals: •Earnings growth expectations are improving while profit margins are stabilizing at pre-pandemic levels. •Higher cash levels especially across S&P 500 companies, increasing stock buybacks and lower credit default rates are positives. Stance Unfavorable to Risk Assets Stance Favorable to Risk Assets Current outlook Outlook one quarter ago PositiveSlightly Positive NeutralSlightly Negative Negative Factors to Consider Over the Next 6-12 Months Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution (March 31, 2024) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. Yorba Linda Water District ▎ 14 Page 19 of 170 Plan Performance Summary Yorba Linda Water District ▎ 15 Page 20 of 170 Allocation Market Value ($) % Performance(%) 1 Quarter Year To Date 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Portfolio 134,119,765 100.00 3.92 3.92 13.55 2.65 6.25 6.32 N/A 6.87 02/01/2016 Blended Benchmark 3.88 3.88 13.01 3.12 6.49 6.42 N/A 7.15 Domestic Equity 52,370,465 39.05 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Russell 3000 Index 10.02 10.02 29.29 9.78 14.34 13.45 12.33 8.81 Dodge & Cox Stock 5,953,487 4.44 8.50 8.50 25.59 10.37 13.57 11.80 11.08 8.38 02/01/2024 iShares S&P 500 Value ETF 2,575,363 1.92 8.01 8.01 25.36 11.98 13.06 11.19 10.44 7.70 02/01/2024 Columbia Contrarian Core Inst3 6,789,710 5.06 10.50 10.50 34.37 11.44 16.16 14.07 12.94 8.52 02/01/2024 Vanguard Growth & Income Adm 13,058,119 9.74 12.44 12.44 31.75 11.98 15.21 14.10 13.03 9.70 02/01/2024 Harbor Capital Appreciation Ret 3,909,680 2.92 13.75 13.75 47.91 9.32 17.22 17.99 N/A 9.12 02/01/2024 iShares S&P 500 Growth ETF 3,837,545 2.86 12.69 12.69 33.49 9.99 15.57 15.68 14.36 9.55 02/01/2024 S&P 500 10.56 10.56 29.88 11.49 15.05 14.09 12.96 8.73 iShares Russell Mid-Cap ETF 7,275,887 5.42 8.55 8.55 22.16 5.90 10.93 10.42 9.78 10.13 02/01/2024 Russell Midcap Index 8.60 8.60 22.35 6.07 11.10 10.58 9.95 10.17 Undisc Managers Behavioral Val R6 4,489,525 3.35 6.39 6.39 21.25 9.73 12.70 10.04 9.96 8.69 02/01/2024 Emerald Growth Institutional 4,481,149 3.34 5.83 5.83 21.02 -1.45 7.91 9.71 8.79 9.53 02/01/2024 Russell 2000 Index 5.18 5.18 19.71 -0.10 8.10 7.73 7.58 9.44 International Equity 12,393,217 9.24 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 MSCI AC World ex USA (Net)4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Dodge & Cox International Stock 1,597,872 1.19 3.13 3.13 13.38 5.14 7.30 5.47 4.02 6.22 02/01/2024 DFA Large Cap International I 4,765,102 3.55 5.73 5.73 15.46 5.34 7.86 7.10 5.04 6.49 02/01/2024 MFS International Growth R6 1,605,257 1.20 4.85 4.85 10.36 3.70 8.02 9.21 7.08 5.66 02/01/2024 MSCI AC World ex USA (Net)4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Hartford Schroders Emerging Mkts Eq 4,424,986 3.30 3.46 3.46 7.24 -6.93 2.72 4.27 N/A 8.32 02/01/2024 MSCI EM (net)2.37 2.37 8.15 -5.05 2.22 3.72 2.95 7.35 Other Growth 1,962,145 1.46 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Vanguard Real Estate ETF 1,962,145 1.46 -1.19 -1.19 8.50 1.72 3.68 4.64 6.20 3.95 02/01/2024 MSCI US REIT Index -0.32 -0.32 10.37 4.03 4.14 5.07 6.54 3.99 Asset Allocation & Performance PARS/115P Moderate Strategic Blend As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. Yorba Linda Water District ▎ 16 Page 21 of 170 Asset Allocation & Performance PARS/115P Moderate Strategic Blend As of March 31, 2024 Allocation Market Value ($) % Performance(%) 1 Quarter Year To Date 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Fixed Income 61,248,133 45.67 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 Baird Aggregate Bond Inst 15,976,124 11.91 -0.45 -0.45 2.80 -2.17 0.81 1.45 1.97 0.95 03/01/2024 iShares Core US Aggregate Bond ETF 11,588,065 8.64 -0.75 -0.75 1.61 -2.48 0.32 1.02 1.50 0.84 03/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 0.92 Dodge & Cox Income 15,148,985 11.30 -0.32 -0.32 4.09 -0.92 1.89 2.28 2.52 -0.24 02/01/2024 PGIM Total Return Bond R6 15,463,149 11.53 0.14 0.14 4.61 -1.68 0.96 1.84 2.43 -0.11 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 MainStay MacKay High Yield Corp Bond Fund 3,071,810 2.29 1.68 1.68 9.56 3.00 4.40 4.48 4.61 1.31 03/01/2024 ICE BofA High Yield Master II 1.51 1.51 11.04 2.21 4.03 4.25 4.36 1.19 Cash Equivalent 6,145,804 4.58 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 First American Government Obligation - X 6,145,804 4.58 1.31 1.31 5.28 2.61 1.95 1.82 N/A 0.86 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. Yorba Linda Water District ▎ 17 Page 22 of 170 Performance(%) 2023 2022 2021 2020 2019 2018 2017 Total Portfolio 14.07 -14.61 9.29 12.52 17.70 -4.01 13.38 Blended Benchmark 13.56 -13.74 10.21 12.02 17.66 -3.37 11.66 Domestic Equity N/A N/A N/A N/A N/A N/A N/A Russell 3000 Index 25.96 -19.21 25.66 20.89 31.02 -5.24 21.13 Dodge & Cox Stock 17.48 -7.22 31.73 7.16 24.83 -7.07 18.33 iShares S&P 500 Value ETF 22.02 -5.41 24.67 1.24 31.71 -9.09 15.19 Columbia Contrarian Core Inst3 32.21 -18.45 24.45 22.44 33.08 -8.81 21.89 Vanguard Growth & Income Adm 24.76 -17.11 29.11 18.08 29.77 -4.61 20.80 Harbor Capital Appreciation Ret 53.86 -37.67 15.74 54.56 33.39 -0.96 36.68 iShares S&P 500 Growth ETF 29.80 -29.51 31.76 33.21 30.91 -0.17 27.20 S&P 500 26.29 -18.11 28.71 18.40 31.49 -4.38 21.83 iShares Russell Mid-Cap ETF 17.07 -17.43 22.38 16.91 30.31 -9.13 18.32 Russell Midcap Index 17.23 -17.32 22.58 17.10 30.54 -9.06 18.52 Undisc Managers Behavioral Val R6 14.57 -1.10 34.50 3.62 23.34 -15.20 13.53 Emerald Growth Institutional 19.06 -24.50 4.04 38.85 28.70 -11.57 28.11 Russell 2000 Index 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 International Equity N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA (Net)15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 Dodge & Cox International Stock 16.70 -6.78 11.03 2.10 22.78 -17.98 23.94 DFA Large Cap International I 17.87 -13.03 12.81 8.12 22.04 -14.14 25.37 MFS International Growth R6 14.96 -15.02 9.65 15.82 27.31 -8.79 32.58 MSCI AC World ex USA (Net)15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 Hartford Schroders Emerging Mkts Eq 9.00 -22.14 -4.93 23.78 22.32 -15.42 N/A MSCI EM (net)9.83 -20.09 -2.54 18.31 18.42 -14.57 37.28 Other Growth N/A N/A N/A N/A N/A N/A N/A Vanguard Real Estate ETF 11.75 -26.20 40.38 -4.72 28.91 -5.95 4.95 MSCI US REIT Index 13.74 -24.51 43.06 -7.57 25.84 -4.57 5.07 Calendar Year Comparative Performance PARS/115P Moderate Strategic Blend As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. Yorba Linda Water District ▎ 18 Page 23 of 170 Calendar Year Comparative Performance PARS/115P Moderate Strategic Blend As of March 31, 2024 Performance(%) 2023 2022 2021 2020 2019 2018 2017 Fixed Income N/A N/A N/A N/A N/A N/A N/A Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 Baird Aggregate Bond Inst 6.43 -13.35 -1.46 8.63 9.48 -0.30 4.20 iShares Core US Aggregate Bond ETF 5.59 -13.06 -1.67 7.42 8.68 -0.05 3.53 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 Dodge & Cox Income 7.70 -10.87 -0.91 9.45 9.73 -0.31 4.36 PGIM Total Return Bond R6 7.78 -14.86 -1.15 8.10 11.14 -0.63 6.71 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 MainStay MacKay High Yield Corp Bond Fund 11.97 -7.81 5.35 5.28 13.03 -1.34 6.79 ICE BofA High Yield Master II 13.46 -11.22 5.36 6.17 14.41 -2.27 7.48 Cash Equivalent N/A N/A N/A N/A N/A N/A N/A ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 First American Government Obligation - X 5.00 1.54 0.03 0.40 2.12 1.74 0.79 ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. Yorba Linda Water District ▎ 19 Page 24 of 170 QTR Market Value As of 01/01/2024 Net Flows Return On Investment Market Value As of 03/31/2024 Total Portfolio 126,701,961 1,923,945 5,493,858 134,119,765 Account Reconciliation PARS/115P Moderate Strategic Blend As of March 31, 2024 Yorba Linda Water District ▎ 20 Page 25 of 170 Allocation Mandate Weight (%) Feb-2016 PARS Moderate 100.0 Historical Hybrid Composition - Blended Benchmark PARS/115P Moderate Strategic Blend As of March 31, 2024 See next page for a composition of the blended benchmark. Yorba Linda Water District ▎ 21 Page 26 of 170 Allocation Mandate Weight (%) Oct-2012 Blmbg. U.S. Aggregate 33.5 S&P 500 26.5 ICE BofA 1-3 Yr. Gov/Corp 10.0 Russell 2000 Index 7.5 MSCI EAFE (net)6.0 Russell Midcap Index 5.0 FTSE 1 Month T-Bill 5.0 MSCI EM (net)3.3 Wilshire US REIT Index 1.8 ICE BofA High Yield Master II 1.5 Apr-2007 S&P 500 43.0 Blmbg. U.S. Aggregate 30.0 ICE BofA 1-3 Yr. Gov/Corp 15.0 FTSE 1 Month T-Bill 5.0 MSCI EAFE (net)5.0 Russell 2000 Index 2.0 Jul-1986 S&P 500 50.0 Blmbg. U.S. Aggregate 30.0 ICE BofA 1-3 Yr. Gov/Corp 15.0 FTSE 1 Month T-Bill 5.0 Historical Hybrid Composition - PARS Moderate PARS/115P Moderate Strategic Blend As of March 31, 2024 Yorba Linda Water District ▎ 22 Page 27 of 170 This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances. Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated by a NRSRO. It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets. Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown. The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected performance. For more information regarding PFMAM’s services or entities, please visit www.pfmam.com. © 2024 PFM Asset Management LLC. Further distribution is not permitted without prior written consent. IMPORTANT DISCLOSURES Yorba Linda Water District ▎ 23 Page 28 of 170 ITEM NO. 7.2. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Doug Davert, Assistant General Manager Brianna De La Cruz, Public Affairs Specialist SUBJECT: Legislative Update from Townsend Public Affairs BACKGROUND: Representatives from Townsend Public Affairs will be in attendance to provide their report. STRATEGIC PLAN INITIATIVES: G1 2B - Monitor emerging water and wastewater legislation.; G1 2C - Meet with lobbyists, representatives, and regulators at all levels (local/State/Federal). ATTACHMENTS: 1. Slide Deck - TPA Legislative Update 2. TPA Monthly Report 3. TPA Legislative Matrix Page 29 of 170 WWW.TOWNSENDPA.COM SACRAMENTO • WASHINGTON, DC NORTHERN CALIFORNIA • CENTRAL CALIFORNIA • SOUTHERN CALIFORNIA Legislative Update May 16, 2024 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 2 Legislative Calendar •April 26 First House Policy Committee Deadline •May 16 First House Appropriations Suspense File Hearing •May 24 First House Deadline •June 15 Budget Deadline Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 3 January Budget Proposal: High Level Overview • Estimated $37.9 billion deficit due to unprecedented tax return delays and stock market declines • Deficit estimate differs from Legislative Analyst Office’s estimations due to revenue return expectations • Proposal kicks off negotiations with the Legislature, budget overview committee hearings will continue through next few months January Budget Proposal Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 4 Budget Proposal: High Level Overview Yorba Linda Water District: Legislative Update: May 16 May Revise Budget Problem $37.9 billionGovernor’s January Budget $7 billionAdditional Shortfall of Revenues -$17.3 billionEarly Action Budget Package $27.6 billionRemaining Budget Problem Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 5 May Revise Proposal: Budget Balancing Tactics Utilizing ~ $8.9 billion in reserve funding $10.7 billion reductions in General Fund spending $2 billion in internal revenue borrowing $520 million in proposed funding delays $3.9 billion in fund shifts between accounts Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 6 AB 1827 (Papan) – High Water Use Parcels Details • Provides that fees or charges for property-related water service may include the incrementally higher costs of water service due to: o The higher water usage demand of parcel o The maximum potential water use. o Projected peak water usage. o Any combination of the above Status •Sponsored by IRWD and Coastkeeper. Supported by ACWA, CSDA, MWDOC, YLWD, EOCWD •Currently on the Assembly Floor Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 7 AB 2257 (Wilson) – Water/Sewer Fees Details • Establishes an exhaustion of remedies provision to protect local agencies from lawsuits contesting a fee or assessment • Provides that the exhaustion of remedies provided for applies only if a local agencies complies with a set of transparency provisions • Limits the admission of evidence outside of the official record of local agency proceedings Status •Sponsored by ACWA. Supported by dozens of water agencies •Currently on the Assembly Floor Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 8 SB 903 (Skinner) – PFAS Ban Details • Creates a universal non-essential use ban on PFAS • Prohibit a person from distributing, selling, or offering for sale in the state a product that contains intentionally added PFAS unless it is currently unavoidable • Establishes a significant financial penalty during each day of the violation Status •Sponsored by CASA. Supported by water and sanitation agencies and environmentalists •Currently on the Senate Appropriations Committee’s Suspense File Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 9 SB 1210 (Skinner) – Service Connections Details • Requires local agencies to post on their website a schedule of fees for a service connection, capacity, or other point of connection charge • Requires local agencies to post on their website the estimated timeframes for completing typical service connections needed for each housing development type Status •Sponsored by Housing Action Coalition. Original version opposed by water and sanitation agencies and associations. ACWA staff suggesting a watch after April 22 amendments •Currently on the Senate Floor Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 10 SB 1218 (Newman) – Emergency Supplies Details • This bill would declare that it is the established policy of the state to encourage and incentivize, but not mandate, the development of emergency water supplies, and to support their use during times of water shortage. Status •Sponsored by IRWD. Supported by water agencies and associations. •Currently on the Senate Appropriations Committee’s Suspense File Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 11 STATEWIDE BALLOT INITIATIVES • Taxpayer Protection and Government Accountability Act •ACA 13 •ACA 1 • Proposition 47 Reforms • Local Rent Control STATEWIDE BONDS Under Consideration for November 2024 • Climate Bond • Education Bond • Housing Bond Anticipated Ballot Measures in 2024 Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 12 Fiscal Year 2025 Community Project Funding StatusRequested Amount DescriptionProject Submitted to Rep. Kim, Senator Padilla, and Senator Butler $1,105,000Well 2X is a drinking water well that will enable YLWD to maximize local groundwater and minimize the use of treated imported water Well 2X • Leveraging relationships with the Army Corps of Engineers to submit an application for Community Project Funding as a new start Environmental Infrastructure Section 219 project • Letter of Intent submitted to the Army Corps. Preliminary checklists completed • Needs to be funded by the Community Project Funding process in order to start Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Slide 13 ctownsend@townsendpa.com Christopher Townsend President California Advocacy | Federal Advocacy | Grant Writing www.TownsendPA.com | (949) 399-9050 eodonnell@townsendpa.com Eric O’Donnell Director Questions? Yorba Linda Water District: Legislative Update: May 16 Item No. 7.2 SUBMITTED BY: TownsendPA MEETING DATE: May 16, 2024 Page 1 M E M O R A N D U M To: Yorba Linda Water District From: Townsend Public Affairs Date: May 2, 2024 Subject: State and Federal Legislative Monthly Report STATE LEGISLATIVE UPDATES The month of April included the State Legislature’s quick pace of considering and amending legislation to ensure bills progressed through their first house. April featured a major legislative deadline for policy committees to hear and report bills to the fiscal committees that have a cost to the State. Measures deemed to have a fiscal impact that did not meet this deadline have failed to progress for the remainder of the legislative session. Looking forward to the month of May, Governor Newsom will release the May Revision of his proposed FY 2024-25 State Budget. The “May Revise” edition of the budget framework reflects revised revenue and expenditure estimates for both the current and budget years and allows the Administration and the Legislature to reconcile and reconfigure spending plans appropriately. Below is an overview of pertinent actions from the month of April. Most Legislative Priority Bills Pass Policy Committee Deadline April 26 marked the critical deadline for fiscal bills to pass out of policy committees in their houses of origin. Most priority bills continue their legislative journey and await their hearing in the Appropriations Committees or Floor votes. Below are summaries of several important legislative efforts. Partly due to the massive improvement in statewide water conditions from record setting rain and snow events, as well as the prevalence of influential legislation in recent years, water and sanitation policy areas have not been a major priority of the Legislature this year. Focus in the industry has largely been spent working with the State Water Resources Control Board on the drafting and implementation of the Making Water Conservation a California Way of Life regulations which implement indoor water use objective bills AB 1668 (Friedman)/SB 606 (Hertzberg) from 2018. However, there are several bills that are of interest this year, dealing with a variety of topics including impact fees, Proposition 218, and drought resiliency. • AB 2257 (Wilson) restricts legal actions against local agencies for alleged noncompliance with constitutional provisions regarding fees or assessments and requires individuals or entities to submit written objections specifying noncompliance grounds before filing lawsuits. This measure limits judicial review to specific documents if agencies follow set Page 43 of 170 Page 2 procedures and prohibits separate legal actions on the adequacy of agency responses. This bill has passed its policy committees and is currently on the Assembly Floor. • SB 903 (Skinner) would prohibit a person from distributing, selling, or offering for sale in the state a product that contains intentionally added per- or poly-fluoroalkyl substances (PFAS) unless the use of PFAS is currently unavoidable. SB 903 would also authorize the Department of Toxic Substances Control (DTSC) to establish regulations to administer the prohibition, which includes a financial penalty per day that a manufacturer is out of compliance. This bill has passed its policy committee and is currently on the Senate Appropriations Committee’s Suspense File. • SB 1072 (Padilla) requires, if a property-related fee or charge creates revenues in excess of the local government’s reasonable cost of providing the specific benefit or specific government service, that the excess revenues be used only to reduce the subsequently adopted and following property-related fee or charge. This bill has passed its policy committee and is currently on the Senate Floor. • SB 1210 (Skinner) requires utilities, including water and sewer utilities or municipalities providing water and sewer services, to post information for new housing construction on their websites. Information required to be posted includes the amount of any charge issued for a connection, capacity charge, or other point of connection charge by housing unit’s address; and the schedule of fees for a service connection, capacity charge, or other point of connection charge. Furthermore, SB 1210 requires that utilities allow applicants to track where the applicant is at in the queue for service connection; and receive a reasonable estimate regarding when the utility will complete the applicant’s service connection. This bill has passed its policy committees and is currently in the Senate Appropriations Committee. State Budget Update On April 11, the Legislature passed AB 106 (Gabriel), the first of several expected budget bills in the coming months, representing the non-controversial budget solutions that the Legislature and the Governor agreed to the previous week. Governor Newsom signed AB 106 into law on April 15. The measure, called the “Early Action Budget Agreement,” includes much of the funding shifts, delays, and reductions that were included in the Governor’s January budget. Including: • $3.6 billion in reductions (largely to one-time spending); • $5.2 billion in revenue and borrowing; • $5.2 billion in delays and deferrals; and • $3.4 billion in expenditure shifts from the General Fund to other state funds, including GGRF. This Agreement addresses none of the more difficult decisions, such as what discretionary programs will be cut from the General Fund in the coming year. It is anticipated that those discussions will be advanced in yet-to-be released budget bills in the next few weeks. The Assembly Budget Committee posted a programmatic summary of the early actions here. Page 44 of 170 Page 3 Tax Ballot Measure Headed to California Supreme Court on May 8 On April 18, the California State Supreme Court announced they would hear oral arguments on May 8 in the case to remove the Taxpayer Protection and Government Accountability Act (Act) from the November 2024 ballot. In November 2023 the California State Supreme Court granted a hearing request from Governor Gavin Newsom and Democratic legislators to remove the Act from the November 2024 ballot. While the request to have the measure immediately removed from the ballot was denied, the Court requested written arguments from election officials and measure sponsors proving why the measure should go before the voters, which was due in February 2024. The case has now been scheduled for oral arguments to begin on May 8. The Act seeks to raise vote threshold requirements for the passage of state and local tax measures and imposes a stringent burden of proof standard that local governing bodies must meet when modifying or increasing all taxes and fees by justifying their use, need, and duration. The measure is sponsored by the California Business Round Table and its affiliates. If enacted by voters, it would make it more difficult for local governments to maintain existing tax revenues and the ability to modify them in the future. State Water Project Increased Supply Allocation On April 24, the California Department of Water Resources (DWR) announced a further increase in the State Water Project (SWP) water supply allocation forecast for 2024. The forecasted allocation has increased to 40 percent, up from 30 percent last month. This increase provides an additional 420,000 acre-feet of water; enough water to serve an estimated 1.5 million households for a year. Water supply allocations are updated monthly as snowpack, rainfall, and runoff information is assessed, with a final allocation typically determined in May or June. The allocation increase is anticipated to deliver of 40 percent of requested supplies to contractors south of the Delta, which accounts for the majority of contractors; 65 percent of requested supplies to contractors north of the Delta; and 100 percent allocation to Feather River Settlement Contractors. FEDERAL LEGISLATIVE UPDATES LEGISLATIVE BRANCH ACTIVITY House Republicans Select New Appropriations Committee Chair and Begin FY25 Appropriations Process The Republican Steering Committee appointed House Appropriations Committee Vice Chairman Tom Cole to succeed Congresswoman Kay Granger as Chairman after she stepped down from the post. Chairman Cole was widely expected to receive the gavel with his experience and tenure on the committee. He resigned as Chairman of the House Rules Committee to accept this assignment. Chairman Cole represents the establishment wing of the Republican party and is an advocate for earmarks, officially known as community project funding in the House. The House Appropriations Committee recently held multiple legislative hearings to discuss Page 45 of 170 Page 4 President Biden’s FY2025 budget requests. Committee Republicans questioned requests for national issues such as Homeland Security. Immigration—which falls under Homeland Security funding—has become the most discussed issue on Capitol Hill since a border reform deal was killed in the Senate earlier this year. While funding for programs is popular, topline spending and allocation traditionally is where there are stark differences. Appropriations funding packages are rarely standalone vehicles, therefore negotiations could affect FY2025 enactment. Additional discussions will occur as the process moves along toward the end of FY2024. It is common that if the Presidency or a chamber of Congress changes political parties, the party assuming power will want authority over setting the fiscal year budget. Senator Padilla Introduces Bill to Expand Army Corps Efforts to Combat Western Drought Senator Alex Padilla joined Senator Mark Kelly in introducing the Drought Resilient Infrastructure Act (S. 4172). The legislation enables the U.S. Army Corps of Engineers (USACE) to prioritize water conservation at facilities, establishes new emergency authorities that direct them to prioritize conservation at multi-benefit projects during times of drought, and enhances programs to help states, counties, and cities prevent worsening drought conditions. Currently, USACE lacks full authority to modify their water conservation operations for improvement. The legislation would put plans in place to address and prevent drought in the state. California has below average precipitation that causes droughts and impacts water resources. There are 1,539 USACE dams in California. EXECUTIVE BRANCH ACTIVITY EPA Announces Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles The U.S. Environmental Protection Agency (EPA) announced Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles - Phase 3. The rule updates national greenhouse gas pollution standards for heavy-duty vehicles of model years 2027-2032 to reduce pollution and climate change. Heavy-duty vehicles account for 25 percent of emissions from the transportation sector, the single largest source of greenhouse gas emissions. The new standards will be applicable to HD vocational vehicles such as delivery trucks, refuse haulers, and other public utility trucks; transit, shuttle, and school buses; and tractors. According to the EPA, the new standards will avoid 1 billion tons of greenhouse gas emissions and provide $13 billion in annualized net benefits to society in public health, climate safety, and savings for truck owners and operators. The final standards will reduce air pollution for nearly 72 million people who live near truck freight routes. This rule is similar to the Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles that was finalized in March. President Biden is continuing to prioritize greenhouse gas emissions reduction during an election year. The State of California enacted new greenhouse gas emissions standards last year. They are stricter than the newly released Phase 3. The state’s standards are expected to supersede the federal regulations for large truck fleets operating within the state, whether they are registered in California or not. Page 46 of 170 Page 5 Phase 3 is an expansion of Phase 2, enacted in 2016, which allowed manufacturers to discern which emissions control technologies were best for their company, from internal combustion engine vehicles to hybrid vehicles, plug-in hybrid electric vehicles, battery electric vehicles, and hydrogen fuel cell vehicles. Additionally, the Joint Office of Energy and Transportation, along with the Departments of Energy and Transportation and the EPA, announced the National Zero Emission Freight Corridor Strategy, an action plan for deploying zero-emission freight by 2040. Below are additional resources provided by the EPA. • Fact Sheet: Final Standards to Reduce Greenhouse Gas Emissions from Heavy- Duty Vehicles for Model Year 2027 and Beyond (pdf) • Regulatory Impact Analysis: Control of Air Pollution from New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards Regulatory Impact Analysis (pdf) • Response to Comments: Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles: Phase 3 (pdf) EPA Finalizes PFAS Pollution National Drinking Water Standards The Environmental Protection Agency (EPA) finalized the National Primary Drinking Water Regulation (NPDWR) to protect public drinking water systems from per-and polyfluoroalkyl substances (PFAS) or “forever chemicals.” PFAS has been linked to cancers, liver and heart issues, and other health issues. The EPA projects that the final rule will reduce PFAS exposure for nearly 100 million people. NPDWR targets five compounds, including two of the most frequently detected ones—PFOS and PFOA—and caps their maximum contaminant level in public drinking water to 4 parts per trillion. It is the lowest level at which the substances can be reliably detected in the lab and is lower than the allowable amount from any enforceable state regulation currently in place. Prior to its finalization, local governments and associations were critical of costs to upgrade their drinking water systems to meet the standards. EPA announced $1 billion in new funding to the Emerging Contaminants in Small or Disadvantaged Communities Grant—initially authorized at $5 billion in FY2022-2026—to assist communities and local governments with these costs. California received $82,961,000 from this grant in FY2024 appropriations. States are to use this funding to make grants to eligible emerging contaminant projects and/or activities in small or disadvantaged communities. The EPA provided a frequently asked question guide about how to access the grant and eligibility factors. They intend to update it periodically while new funds are administered. To access, please visit EPA FAQ guide. $9 billion was previously allocated through the Bipartisan Infrastructure Law to help communities with drinking water impacted by PFAS and other emerging contaminants. All public water systems have three years to complete their initial monitoring for these chemicals. They must inform the public of the level of PFAS measured in their drinking water. Where PFAS is found at levels that exceed these standards, systems must implement solutions to reduce PFAS in their drinking Page 47 of 170 Page 6 water within five years. EPA will be working closely with state co-regulators in supporting water systems and local officials to implement this rule. Additional resources provided by the EPA: • General Fact Sheet: EPA's Final Rule to Limit PFAS in Drinking Water (pdf) • Frequently Asked Questions and Answers: Final PFAS National Primary Drinking Water Regulation (pdf) • Fact Sheet: Reducing PFAS in Your Drinking Water with a Home Filter (pdf) • Presentation: Overview EPA PFAS NPDWR (pdf) • Press Release: Biden-Harris Administration Finalizes First-Ever National Drinking Water Standard to Protect 100M People from PFAS Pollution Office of Management and Budget Releases Revised Federal Uniform Guidance To make it easier to apply for federal grants, the White House Office of Management and Budget released final revisions to the Federal Uniform Guidance which sets requirements for cities, counties, and applicable entities that are applying for grants and other forms of federal financial assistance. The final Federal Uniform Guidance is intended to simplify and streamline the federal grant processes for eligible entities. The revisions aim to reduce the administrative burden on federal grant awarding agencies and grant recipients alike. The system will go into effect by October 1, 2024. Significant changes in the Uniform Grants Guidance include: ● Revised Notices of Funding Opportunities (NOFOs) template to make it easier for non- experts and smaller organizations to apply for federal funding. ● Clarify plain language revision to specific terms and definitions for universal interpretation. ● Elimination of required English language in notices, applications, and reporting to make grants accessible to everyone. ● Modify numerous requirements to simplify compliance, such as an additional number of “prior approvals” which recipients must receive from federal agencies. ● Federal agencies must improve official descriptions of their programs with the Federal Program Inventory (FPI), a new comprehensive, searchable tool for all federal programs. To view more information please visit whitehouse.gov. Reclamation Increases 2024 Central Valley Project Water Supply Allocations Again The Bureau of Reclamation announced an additional increase in the Central Valley Project 2024 water supply allocation for south-of-Delta contractors and those in the Friant Division. Reclamation last increased the water supply on March 22. North-of-Delta CVP contractors are currently at 100% of their supplies. South-of-Delta agricultural contractors are being increased from 35% to 40%. California-Great Basin Regional Director Karl Stock said hydrologic conditions have improved enough that they were able to provide a gradual increase. California relies on rainfall and snowfall to replenish its water supply. When there is a drought, the federal government assists in increasing Page 48 of 170 Page 7 allocation. Changes in hydrology, actions that impact operations, and opportunities to deliver additional water will influence future allocations. Page 49 of 170 Yorba Linda Water District Legislative Matrix 5/1/2024 AB 277 (Rodriguez, D) Extreme Weather Forecast and Threat Intelligence Integration Center. Status: 09/01/2023 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/21/2023) (May be acted upon Jan 2024) Location: 09/01/2023 - Senate 2 YEAR Summary: Current law establishes the Atmospheric Rivers: Research, Mitigation, and Climate Forecasting Program within the department to, upon appropriation of special fund moneys, research climate forecasting and the causes and impacts that climate change has on atmospheric rivers, to operate reservoirs in a manner that improves flood protection in the state, and to reoperate flood control and water storage facilities to capture water generated by atmospheric rivers. This bill would establish the State-Federal Flood Operations Center within the Department of Water Resources and would authorize the department to administer the center in the department’s divisions, offices, or programs. The bill would provide that the purpose of the center is to function as the focal point for gathering, analyzing, and disseminating flood and water-related information to stakeholders and would authorize the center to take specified actions for that purpose, including to function during emergency situations to enable the department to centrally coordinate statewide emergency responses. (Based on 07/03/2023 text) AB 460 (Bauer-Kahan, D) State Water Resources Control Board: water rights and usage: interim relief: procedures. Status: 07/14/2023 - Failed Deadline pursuant to Rule 61(a)(10). (Last location was N.R. & W. on 6/7/2023)(May be acted upon Jan 2024) Location: 07/14/2023 - Senate 2 YEAR Summary: Current law authorizes the State Water Resources Control Board to investigate all streams, stream systems, lakes, or other bodies of water, take testimony relating to the rights to water or the use of water, and ascertain whether water filed upon or attempted to be appropriated is appropriated under the laws of the state. Current law requires the board to take appropriate actions to prevent waste or the unreasonable use of water. This bill would authorize the board, in conducting specified investigations or proceedings to inspect the property or facilities of a person or entity, as specified. The bill would authorize the board, if consent is denied for an inspection, to obtain an inspection warrant, as specified, or in the event of an emergency affecting public health and safety, to conduct an inspection without consent or a warrant. (Based on 05/18/2023 text) AB 560 (Bennett, D) Sustainable Groundwater Management Act: groundwater adjudication. Status: 09/01/2023 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/14/2023) (May be acted upon Jan 2024) Location: 09/01/2023 - Senate 2 YEAR Summary: Current law prohibits a court from approving entry of judgment in certain adjudication actions for a basin required to have a groundwater sustainability plan under the Sustainable Groundwater Management Act, unless the court finds that the judgment would not substantially impair the ability of a groundwater sustainability agency, the State Water Resources Control Board, or the Department of Water Resources to comply with the act and to achieve sustainable groundwater management. This bill would require the parties to an adjudication action to submit a proposed settlement agreement determining rights to water to the board for a nonbinding advisory determination as to whether the proposed settlement agreement will substantially impair the ability of a groundwater sustainability agency, the board, or the department to achieve sustainable groundwater management before filing the proposed settlement agreement with the court. The bill would require the board to provide its nonbinding advisory determination to the parties no later than 120 days after the proposed settlement agreement was Page 1 of 21 Page 50 of 170 submitted, and would require the parties to include the board’s nonbinding advisory determination in the court filing, as provided. (Based on 06/26/2023 text) AB 754 (Papan, D) Water management planning: water shortages. Status: 09/01/2023 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/21/2023) (May be acted upon Jan 2024) Location: 09/01/2023 - Senate 2 YEAR Summary: Current law requires an urban water management plan to quantify past, current, and projected water use, identifying the uses among water use sectors, including, among others, commercial, agricultural, and industrial. Current law requires every urban water supplier to prepare and adopt a water shortage contingency plan as part of its urban water management plan. Current law requires the water shortage contingency plan to include the procedures used in conducting an annual water supply and demand assessment, including the key data inputs and assessment methodology used to evaluate the urban water supplier’s water supply reliability for the current year and one dry year. Current law requires the key data inputs and assessment methodology to include specified information, including, among other things, a description and quantification of each source of water supply. This bill would require a water shortage contingency plan to include, if, based on a description and quantification of each source of water supply, a single reservoir constitutes at least 50% of the total water supply, an identification of the dam and description of existing reservoir management operations, as specified, and if the reservoir is owned and operated by the urban water supplier, a description of operational practices and approaches, as specified. (Based on 08/14/2023 text) AB 805 (Arambula, D) Sewer service: disadvantaged communities. Status: 01/30/2024 - Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 76. Noes 0.). In Senate. Read first time. To Com. on RLS. for assignment. Location: 01/30/2024 - Senate Rules Summary: Under current law, the State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality in accordance with the Porter-Cologne Water Quality Control Act and the federal Clean Water Act. Current law authorizes a regional board to order the provision of sewer service by a receiving sewer system, as defined, to a disadvantaged community served by an inadequate onsite sewage treatment system, as defined. This bill would authorize the state board to require a sewer service provider to contract with an administrator designated or approved by the state board for administrative, technical, operational, legal, or managerial services to assist a designated sewer system with the provision of adequate sewer service, as defined. The bill would also authorize the state board to order a designated sewer system to accept those services, including full management and control of all aspects of the designated sewer system, from an administrator. The bill would define “designated sewer system” for these purposes as a sewer system that serves a disadvantaged community and that the state board finds to be either an inadequate sewage treatment system or a sewer system that has demonstrated difficulty in maintaining technical, managerial, and financial capacity to prevent fraud and mismanagement, or a sewer system that voluntarily accepts financial assistance for the provision of adequate sewer service. (Based on 01/22/2024 text) AB 828 (Connolly, D) Sustainable groundwater management: managed wetlands. Status: 01/29/2024 - Read third time. Passed. Ordered to the Senate. (Ayes 47. Noes 15.) In Senate. Read first time. To Com. on RLS. for assignment. Location: 01/29/2024 - Senate Rules Page 2 of 21 Page 51 of 170 Summary: The Sustainable Groundwater Management Act requires all groundwater basins designated as high- or medium- priority basins by the Department of Water Resources to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans, except as specified. Current law defines various terms for purposes of the act. This bill would add various defined terms for purposes of the act, including the terms “managed wetland” and “small community water system.” (Based on 01/11/2024 text) AB 830 (Soria, D) Lake and streambed alteration agreements: exemptions. Status: 09/01/2023 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/21/2023) (May be acted upon Jan 2024) Location: 09/01/2023 - Senate 2 YEAR Summary: Current law prohibits a person, a state or local governmental agency, or a public utility from substantially diverting or obstructing the natural flow of, or substantially changing or using any material from the bed, channel, or bank of, any river, stream, or lake, or depositing or disposing of debris, waste, or other material containing crumbled, flaked, or ground pavement where it may pass into any river, stream, or lake, unless prescribed requirements are met, including written notification to the Department of Fish and Wildlife regarding the activity. Current law prescribes various requirements for lake and streambed alteration agreements. Current law also establishes various exemptions from these provisions, including exemptions for specified emergency work. This bill would additionally exempt from these provisions the temporary operation of existing infrastructure or temporary pumps being used to divert flood stage flows, as identified by the California Nevada River Forecast Center or the State Water Resources Control Board, or near-flood stage flows, as defined, to groundwater recharge as long as certain conditions are met. (Based on 06/27/2023 text) AB 990 (Grayson, D) Water quality: waste discharge requirements: infill housing projects. Status: 01/29/2024 - Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0.) In Senate. Read first time. To Com. on RLS. for assignment. Location: 01/29/2024 - Senate Rules Summary: Under current law, the State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the federal National Pollutant Discharge Elimination System (NPDES) permit program established by the federal Clean Water Act and the act. This bill would require the regional water board, defined to mean the regional water board with geographic boundaries for the San Francisco Bay region, to, by July 1, 2025, initiate modifications to its waste discharge requirements, as specified. The bill would require these modifications to be completed within 6 months of initiation. Before finalizing the modifications, the bill would require the regional water board to make specified findings, including, among other things, that concerns regarding the potential impacts of the draft NPDES permit requirements on the development of housing on infill sites have been adequately addressed. The bill would make these provisions inoperative on July 1, 2028, and would repeal them on January 1, 2029. (Based on 01/25/2024 text) AB 1024 (Aguiar-Curry, D) Water rights: small irrigation use: lake or streambed alteration agreements. Status: 09/01/2023 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/21/2023) (May be acted upon Jan 2024) Location: 09/01/2023 - Senate 2 YEAR Summary: The Water Rights Permitting Reform Act of 1988 authorizes a person to obtain a right to appropriate water for a small domestic use, small irrigation use, or livestock stockpond use upon first registering the use, as those uses are defined by the act, with the State Water Resources Control Board and thereafter applying the water to reasonable and beneficial use Page 3 of 21 Page 52 of 170 with due diligence. The act requires the registration of water use to be made upon a form prescribed by the board that requires, among other things, a certification that the registrant has contacted a representative of the Department of Fish and Wildlife and has agreed to comply with conditions set forth by the department. The act requires the board to establish reasonable general conditions to which all appropriations made pursuant to the act are required to be subject, including, among other things, that all conditions lawfully required by the department are conditions upon the appropriations. The act provides that the board is not required to adopt general conditions for small irrigation use until the board determines that funds are available for that purpose, and that a registration for small irrigation use pursuant to the act is not authorized until the board establishes general conditions for small irrigation use to protect instream beneficial uses, as specified. This bill would require the board to give priority to adopting, on or before June 30, 2027, except as provided, general conditions that permit specified registrants to store water for small irrigation use during times of high streamflow in exchange for those registrants reducing diversions during periods of low streamflow, as specified. (Based on 05/18/2023 text) AB 1205 (Bauer-Kahan, D) Water rights: sale, transfer, or lease: agricultural lands. Status: 09/14/2023 - Failed Deadline pursuant to Rule 61(a)(14). (Last location was INACTIVE FILE on 9/11/2023)(May be acted upon Jan 2024) Location: 09/14/2023 - Senate 2 YEAR Summary: Current law declares that, because of the conditions prevailing in this state, the general welfare requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of the water is to be exercised with a view to the reasonable and beneficial use of the water in the interest of the people and for the public welfare. This bill would require the State Water Resources Control Board to, on or before January 1, 2027, conduct a study and report to the Legislature and appropriate policy committees on the existence of speculation or profiteering by an investment fund in the sale, transfer, or lease of an interest in any surface water right or groundwater right previously put to beneficial use on agricultural lands, as specified. The bill would repeal this provision on January 1, 2031. (Based on 07/13/2023 text) AB 1272 (Wood, D) State Water Resources Control Board: drought planning. Status: 09/14/2023 - Withdrawn from Engrossing and Enrolling. Ordered to the Senate. In Senate. Held at Desk. Location: 09/14/2023 - Senate DESK Summary: Would require the State Water Resources Control Board, in consultation with the Department of Fish and Wildlife, to adopt principles and guidelines for diversion and use of water in coastal watersheds, as specified, during times of water shortage for drought preparedness and climate resiliency. The bill would require that the principles and guidelines allow for the development of locally generated watershed-level plans to support public trust uses, public health and safety, and the human right to water in times of water shortage, among other things. The bill also would require the state board, prior to adopting those principles and guidelines, to allow for public comment and hearing, as provided. The bill would make the implementation of these provisions contingent upon an appropriation of funds by the Legislature for this purpose. (Based on 09/01/2023 text) AB 1337 (Wicks, D) State Water Resources Control Board: water diversion curtailment. Status: 07/14/2023 - Failed Deadline pursuant to Rule 61(a)(10). (Last location was N.R. & W. on 6/7/2023)(May be acted upon Jan 2024) Location: 07/14/2023 - Senate 2 YEAR Summary: Under existing law, the diversion or use of water other than as authorized by specified provisions of law is a trespass, subject to specified civil liability. This bill would expand the instances when the diversion or use of water is considered a trespass. This bill contains other related provisions and other existing laws. (Based on 05/18/2023 text) Page 4 of 21 Page 53 of 170 AB 1563 (Bennett, D) Groundwater sustainability agency: groundwater extraction permit: verification. Status: 07/14/2023 - Failed Deadline pursuant to Rule 61(a)(10). (Last location was GOV. & F. on 6/22/2023)(May be acted upon Jan 2024) Location: 07/14/2023 - Senate 2 YEAR Summary: Current law authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin and imposes specified duties upon that agency or combination of agencies, as provided. Current law authorizes a groundwater sustainability agency to request of the county, and requires a county to consider, that the county forward permit requests for the construction of new groundwater wells, the enlarging of existing groundwater wells, and the reactivation of abandoned groundwater wells to the agency before permit approval. This bill would instead require a county to forward permit requests for the construction of new groundwater wells, the enlarging of existing groundwater wells, and the reactivation of abandoned groundwater wells to the groundwater sustainability agency before permit approval. (Based on 06/28/2023 text) AB 1573 (Friedman, D) Water conservation: landscape design: model ordinance. Status: 09/14/2023 - Failed Deadline pursuant to Rule 61(a)(14). (Last location was INACTIVE FILE on 9/7/2023)(May be acted upon Jan 2024) Location: 09/14/2023 - Senate 2 YEAR Summary: The Water Conservation in Landscaping Act provides for a Model Water Efficient Landscape Ordinance that is adopted and updated at least every 3 years by the Department of Water Resources, unless the department makes a specified finding. Current law requires a local agency to adopt the model ordinance or to adopt a water efficient landscape ordinance that is at least as effective in conserving water as the updated model ordinance, except as specified. Current law specifies the provisions of the updated model ordinance, as provided. Current law includes a related statement of legislative findings and declarations. This bill would require the updated model ordinance to include provisions that require that plants included in a landscape design plan be selected based on their adaptability to climatic, geological, and topographical conditions of the project site, as specified. The bill would also exempt landscaping that is part of a culturally specific project, as defined, ecological restoration projects that do not require a permanent irrigation system, mined-land reclamation projects that do not require a permanent irrigation system, and existing plant collections, as part of botanical gardens and arboretums open to the public, from the model ordinance. The bill would require the updated model ordinance to include provisions that, among other changes, prohibit the use of traditional overhead sprinklers on all new and rehabilitated landscapes and require that new and rehabilitated landscapes use only water efficient irrigation devices. (Based on 09/01/2023 text) AB 1597 (Alvarez, D) Water quality: California-Mexico cross-border rivers. Status: 07/14/2023 - Failed Deadline pursuant to Rule 61(a)(10). (Last location was E.Q. on 6/14/2023)(May be acted upon Jan 2024) Location: 07/14/2023 - Senate 2 YEAR Summary: Would authorize, upon appropriation by the Legislature in the annual Budget Act or another statute, funds to be made available to the North American Development Bank (NADBank) for loans, grants, and direct expenditures to address water quality problems arising in the California-Mexico cross-border rivers. The bill would require the funding to be available for specified purposes, as provided, including water quality projects for the Tijuana River, and would make 10% of the funding available for the administrative costs of implementing these provisions. The bill would authorize funding provided for activities or projects in the State of Baja California to be provided through direct expenditures and for grants to an eligible funding recipient authorized to work in Mexico under a specified circumstance. The bill would authorize grant funding to be Page 5 of 21 Page 54 of 170 conditioned on enforceability and accountability mechanisms agreed upon by the North American Development Bank and the recipient, with the concurrence of the State Water Resources Control Board. The bill would require the California Environmental Protection Agency to notify the leadership office in each house of the Legislature on cross-border collaboration and the expenditure of the funding, as provided. (Based on 06/22/2023 text) AB 1820 (Schiavo, D) Housing development projects: applications: fees and exactions. Status: 04/30/2024 - Re-referred to Com. on APPR. Location: 04/25/2024 - Assembly Appropriations Summary: Current law requires a city or county to deem an applicant for a housing development project to have submitted a preliminary application upon providing specified information about the proposed project to the city or county from which approval for the project is being sought. Current law requires a housing development project be subject only to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted. This bill would authorize a development proponent that submits a preliminary application for a housing development project to request a preliminary fee and exaction estimate, as defined, and would require the local agency to provide the estimate within 30 business days of the submission of the preliminary application. For development fees imposed by an agency other than a city or county, the bill would require the development proponent to request the fee schedule from the agency that imposes the fee. (Based on 04/29/2024 text) AB 1827 (Papan, D) Local government: fees and charges: water: higher consumptive water parcels. Status: 04/29/2024 - Read second time. Ordered to third reading. Calendar: 05/02/24 #72 A-THIRD READING FILE - ASSEMBLY BILLS Location: 04/29/2024 - Assembly THIRD READING Summary: The California Constitution specifies various requirements with respect to the levying of assessments and property- related fees and charges by a local agency, including requiring that the local agency provide public notice and a majority protest procedure in the case of assessments and submit property-related fees and charges for approval by property owners subject to the fee or charge or the electorate residing in the affected area following a public hearing. Current law, known as the Proposition 218 Omnibus Implementation Act, prescribes specific procedures and parameters for local jurisdictions to comply with these requirements and, among other things, authorizes an agency providing water, wastewater, sewer, or refuse collection services to adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation under certain circumstances. Current law defines, among other terms, the term “water” for these purposes to mean any system of public improvements intended to provide for the production, storage, supply, treatment, or distribution of water from any source. This bill would provide that the fees or charges for property-related water service imposed or increased, as specified, may include the incrementally higher costs of water service due to specified factors, including the higher water usage demand of parcels. (Based on 04/04/2024 text) Position: Support AB 2079 (Bennett, D) Groundwater extraction: large-diameter, high-capacity water wells: permits. Status: 04/29/2024 - Re-referred to Com. on APPR. Location: 04/23/2024 - Assembly Appropriations Summary: Current law requires the State Water Resources Control Board to adopt a model water well, cathodic protection well, and monitoring well drilling and abandonment ordinance implementing certain standards for water well construction, maintenance, and abandonment and requires each county, city, or water agency, where appropriate, to adopt a water well, Page 6 of 21 Page 55 of 170 cathodic protection well, and monitoring well drilling and abandonment ordinance that meets or exceeds certain standards. Under current law, if a county, city, or water agency, where appropriate, fails to adopt an ordinance establishing water well, cathodic protection well, and monitoring well drilling and abandonment standards, the model ordinance adopted by the state board is required to take effect, and is required to be enforced by the county or city and have the same force and effect as if adopted as a county or city ordinance. This bill would require a local enforcement agency, as defined, to perform specified activities at least 30 days before determining whether to approve a permit for a new large-diameter, high-capacity well, as defined. By imposing additional requirements on a local enforcement agency, the bill would impose a state-mandated local program. The bill would require, if the proposed large-diameter, high-capacity well is to be located in an area subject to management by a groundwater sustainability agency, the applicable groundwater sustainability agency, upon notice of a permit application, to provide specified information to the local enforcement agency, including, but not limited to, the name of the applicable groundwater sustainability agency, the agency manager and contact information, and the applicable sustainable management criteria related to groundwater levels, including the groundwater level measurable objectives and minimum thresholds. The bill would require a local enforcement agency, before approving a permit for a large-diameter, high capacity well, to provide specified information to the applicant. The bill would prescribe certain standards a local enforcement agency would be required to follow in the approval or denial of the permit, including the location of the proposed large-diameter, high capacity well and specified geological and water supply considerations. The bill would provide exemptions for its provisions for specified water wells. The bill would provide that its provisions apply only to applications for permits for the construction, maintenance, abandonment, or destruction of water wells in basins identified in the Department of Water Resources Bulletin 118. (Based on 04/25/2024 text) AB 2171 (Bennett, D) Water: Department of Water Resources. Status: 02/08/2024 - From printer. May be heard in committee March 9. Location: 02/07/2024 - Assembly PRINT Summary: Current law establishes in the Natural Resources Agency the Department of Water Resources, which is under the control of the Director of Water Resources. Current law provides for the appointment of the director by the Governor, subject to confirmation by the Senate. This bill would make nonsubstantive changes to that provision. (Based on 02/07/2024 text) AB 2172 (Wallis, R) Irrigation districts: Imperial Irrigation District: electricity: assessment and inventory of assets. Status: 04/18/2024 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 17). Re-referred to Com. on APPR. Location: 04/17/2024 - Assembly Appropriations Summary: Would require the California State Auditor’s Office to conduct a comprehensive assessment and inventory of the Imperial Irrigation District’s assets related to its distribution of electricity, as provided. The bill would require the California State Auditor, on or before September 30, 2025, to submit the assessment and inventory to the Legislature, as provided. (Based on 03/21/2024 text) AB 2257 (Wilson, D) Local government: property-related water and sewer fees and assessments: remedies. Status: 04/24/2024 - Re-referred to Com. on L. GOV. Calendar: 05/01/24 A-LOCAL GOVERNMENT 1:30 p.m. - State Capitol, Room 126 CARRILLO, JUAN, Chair Location: 03/19/2024 - Assembly Local Government Summary: The California Constitution specifies various requirements with respect to the levying of assessments and property- related fees and charges by a local agency, including notice, hearing, and protest procedures, depending on the character of the assessment, fee, or charge. Current law, known as the Proposition 218 Omnibus Implementation Act, prescribes specific Page 7 of 21 Page 56 of 170 procedures and parameters for local jurisdictions to comply with these requirements. This bill would prohibit, if a local agency complies with specified procedures, a person or entity from bringing a judicial action or proceeding alleging noncompliance with the constitutional provisions for any new, increased, or extended fee or assessment, as defined, unless that person or entity has timely submitted to the local agency a written objection to that fee or assessment that specifies the grounds for alleging noncompliance, as specified. This bill would provide that local agency responses to the timely submitted written objections shall go to the weight of the evidence supporting the agency’s compliance with the substantive limitations on fees and assessments imposed by the constitutional provisions. (Based on 04/23/2024 text) AB 2318 (Papan, D) State Water Pollution Cleanup and Abatement Account: receipts and expenditures: report. Status: 04/10/2024 - In committee: Set, first hearing. Referred to suspense file. Location: 04/10/2024 - Assembly APPR. SUSPENSE FILE Summary: Current law requires each of the 9 California regional water quality control boards to formulate and adopt water quality control plans for all areas within the region, as provided. Current law requires specified moneys to be paid into the State Water Pollution Cleanup and Abatement Account, which is established in the State Water Quality Control Fund, including, among other moneys, the proceeds of civil penalties for violations of certain waste discharge requirements. Current law continuously appropriates moneys in the account for specified purposes, including, among others, the payment of grant moneys to eligible entities to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need. This bill would require the State Water Resources Control Board to, no later than January 1 of each year, post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account, as provided. The bill would require the board to provide the initial report no later than January 1, 2026, and to include data from the years 2017 to 2025, inclusive, in that report. (Based on 02/12/2024 text) AB 2409 (Papan, D) Office of Planning and Research: permitting accountability transparency dashboard. Status: 04/16/2024 - From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 15. Noes 0.) (April 16). Re-referred to Com. on APPR. Calendar: 05/01/24 A-APPROPRIATIONS 9:30 a.m. - 1021 O Street, Room 1100 WICKS, BUFFY, Chair Location: 04/16/2024 - Assembly Appropriations Summary: Would require the Office of Planning and Research, on or before January 1, 2026, to create and maintain, as specified, a permitting accountability transparency internet website (dashboard). The bill would require the dashboard to include a display for each permit to be issued by specified state agencies for all covered projects. The bill would define various terms for these purposes. The bill would also require the dashboard to include, but not be limited to, information for each permit to be issued by a state agency that is required for the completion of the project, including, among other requirements, the permit application submission date. The bill would require each state agency with a responsibility for issuing a permit for a covered project to provide information in the appropriate time and manner as determined by the office. The bill would also make related findings and declarations. (Based on 04/11/2024 text) AB 2515 (Papan, D) Menstrual products: perfluoroalkyl and polyfluoroalkyl substances (PFAS). Status: 04/16/2024 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 1.) (April 16). Re-referred to Com. on APPR. Calendar: 05/01/24 A-APPROPRIATIONS 9:30 a.m. - 1021 O Street, Room 1100 WICKS, BUFFY, Chair Location: 04/16/2024 - Assembly Appropriations Summary: Current law, beginning January 1, 2025, prohibits a person or entity from manufacturing, selling, delivering, holding, or offering for sale in commerce any cosmetic product that contains intentionally added perfluoroalkyl and Page 8 of 21 Page 57 of 170 polyfluoroalkyl substances (PFAS), as defined. This bill would similarly prohibit any person from manufacturing, distributing, selling, or offering for sale in the state any menstrual products that contain regulated PFAS, as defined. The bill would authorize the Department of Toxic Substances Control to adopt guidance or regulations, as specified, for the purposes of implementing and enforcing these provisions. The bill would require the department to issue guidance related to testing for regulated PFAS in menstrual products and would exempt that guidance from the Administrative Procedure Act. The bill would authorize the department to issue a cease and desist order to a manufacturer of a menstrual product under specified circumstances. The bill would make a violation of these provisions punishable by civil penalties, as specified, and would authorize the Attorney General by request of the department, a city attorney, a county counsel, or a city prosecutor to bring an action to enforce these provisions. The bill would create, and would require all moneys collected from penalties to be deposited in, the T.A.M.P.O.N. Act Fund. (Based on 04/04/2024 text) AB 2517 (Fong, Vince, R) Water: irrigation districts: long-term maintenance agreements. Status: 04/18/2024 - Re-referred to Com. on APPR. Location: 04/16/2024 - Assembly Appropriations Summary: The Irrigation District Law provides for the formation of irrigation districts with prescribed powers. The law authorizes an irrigation district to control, distribute, store, spread, sink, treat, purify, recapture, and salvage any water, as specified. Current law requires the Department of Water Resources to give information so far as it may be practicable to persons contemplating the formation of districts. This bill would require the department to respond to a request to enter into a long-term maintenance agreement, as defined, with an irrigation district within 120 days and to prioritize responding to long- term maintenance agreement requests for waterways that already have existing regular-term maintenance agreements, as defined. (Based on 04/17/2024 text) AB 2614 (Ramos, D) Water policy: California tribal communities. Status: 04/23/2024 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 23). Re-referred to Com. on APPR. Location: 04/23/2024 - Assembly Appropriations Summary: The Porter-Cologne Water Quality Control Act establishes a statewide program for the control of the quality of all the waters in the state and makes certain legislative findings and declarations. Existing law defines the term “beneficial uses” for the purposes of water quality as certain waters of the state that may be protected against quality degradation, to include, among others, domestic, municipal, agricultural, and industrial supplies. This bill would add findings and declarations related to California tribal communities and the importance of protecting tribal water use, as those terms are defined. The bill would add tribal water uses as waters of the state that may be protected against quality degradation for purposes of the defined term “beneficial uses.” (Based on 03/21/2024 text) AB 2661 (Soria, D) Electricity: transmission facility planning: Westlands Water District. Status: 04/25/2024 - Re-referred to Com. on APPR. Location: 04/22/2024 - Assembly Appropriations Summary: Current law requires the Public Utilities Commission (PUC) to adopt a process for each load-serving entity, as defined, to file an integrated resource plan and a schedule for periodic updates to the plan to ensure that it meets, among other things, the state’s targets for reducing emissions of greenhouse gases and the requirement to procure at least 60% of its electricity from eligible renewable energy resources by December 31, 2030. Current law establishes an Independent System Operator (ISO) as a nonprofit public benefit corporation, and requires the ISO to ensure the efficient use and reliable operation of the electrical transmission grid consistent with the achievement of planning and operating reserve criteria, as specified. Page 9 of 21 Page 58 of 170 Current law requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission, to provide, not later than March 31, 2024, transmission-focused guidance to the ISO about resource portfolios of expected future renewable energy resources and zero-carbon resources. Current law requires the guidance to include the allocation of those resources by region based on technical feasibility and commercial interest in each region. This bill would require the PUC to perform a sensitivity analysis evaluating the potential for 10,000 to 30,000 megawatts of solar electrical generation located in the Central Valley beyond the amount of solar electrical generation described in the most recently adopted preferred system plan as of January 1, 2025. The bill would require the PUC to transmit the sensitivity analysis to the ISO for evaluation as part of the next transmission planning process. (Based on 04/24/2024 text) AB 2735 (Rubio, Blanca, D) Joint powers agreements: water corporations. Status: 04/30/2024 - Re-referred to Com. on APPR. Location: 04/25/2024 - Assembly Appropriations Summary: The Joint Exercise of Powers Act authorizes 2 or more public agencies, if authorized by their governing bodies, by agreement to jointly exercise any power common to the contracting parties. Current law authorizes 2 or more local public entities, or a mutual water company, as defined, and a public agency, to provide insurance, as specified, by a joint powers agreement. Current law authorizes local public entities or a mutual water company and a public agency to enter into a joint powers agreement for the purposes of risk-pooling, as specified. This bill would authorize a water corporation, as defined, and one or more public agencies to provide insurance, as specified, by a joint powers agreement. (Based on 04/29/2024 text) AB 2761 (Hart, D) Product safety: plastic packaging: Reducing Toxics in Packaging Act. Status: 04/16/2024 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 3.) (April 16). Re-referred to Com. on APPR. Calendar: 05/01/24 A-APPROPRIATIONS 9:30 a.m. - 1021 O Street, Room 1100 WICKS, BUFFY, Chair Location: 04/16/2024 - Assembly Appropriations Summary: This bill would enact the Reducing Toxics in Packaging Act, which would prohibit, beginning January 1, 2026, a person from manufacturing, selling, offering for sale, or distributing in the state plastic packaging that contains certain chemicals, as specified. The bill would exclude from that prohibition packaging used for certain medical, drug, and federally regulated products. The bill would authorize the imposition of a civil penalty for a violation of that prohibition, as specified. (Based on 04/01/2024 text) AB 2799 (Fong, Vince, R) Sustainable groundwater management: small farms: fees. Status: 04/29/2024 - Read second time. Ordered to third reading. Calendar: 05/02/24 #71 A-THIRD READING FILE - ASSEMBLY BILLS Location: 04/29/2024 - Assembly THIRD READING Summary: The Sustainable Groundwater Management Act requires all groundwater basins designated as high- or medium- priority basins by the Department of Water Resources to be managed under a groundwater sustainability plan or coordinated groundwater plans, except as specified. Current law authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin and imposes specified duties upon that agency or combination of agencies, as provided. Existing law authorizes a groundwater sustainability agency that adopts a groundwater sustainability plan to impose fees on the extraction of groundwater from the basin to fund costs of groundwater management, as specified. This bill would require a groundwater sustainability agency to consider the efforts of small farms, as defined, that recharge groundwater into the basin upon which their property is located when imposing or increasing fees. (Based on 03/21/2024 text) Page 10 of 21 Page 59 of 170 AB 2813 (Aguiar-Curry, D) Government Investment Act. Status: 04/30/2024 - Re-referred to Com. on APPR. Location: 04/25/2024 - Assembly Appropriations Summary: Current law, known as the Proposition 218 Omnibus Implementation Act, defines various terms and prescribes procedures and parameters for local jurisdictions to comply with specified provisions of the California Constitution. The Legislature adopted Assembly Constitutional Amendment 1 (ACA 1) at the 2023–24 Regular Session of the Legislature, which, if approved by the voters, would amend and add provisions of the California Constitution to (1) create an additional exception to the 1% limit on the ad valorem tax rate on real property by authorizing a local jurisdiction to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing, if the proposition proposing that tax is approved by 55% of the voters in that local jurisdiction; and (2) authorize a local jurisdiction to impose, extend, or increase a sales and use tax to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing, if the proposition proposing that tax is approved by 55% of the voters in that local jurisdiction. This bill, for purposes of ACA 1, would define “affordable housing” to include rental housing, ownership housing, interim housing, and affordable housing programs such as downpayment assistance, first-time homebuyer programs, and owner-occupied affordable housing rehabilitation programs. The bill would require a local government to ensure that any project that is funded with ACA 1 bonded indebtedness or ACA 1 special taxes to have an estimated useful life of at least 15 years or 5 years if the funds are for specified public safety buildings, facilities, and equipment. (Based on 04/29/2024 text) AB 2894 (Gallagher, R) Urban water use targets: indoor residential water use. Status: 02/16/2024 - From printer. May be heard in committee March 17. Location: 02/15/2024 - Assembly PRINT Summary: Existing law requires the state to achieve a 20% reduction in urban per capita water use in California. Existing law requires each urban retail water supplier to develop urban water use targets and an interim urban water use target, as specified, and states the intent of the Legislature that the urban water use targets cumulatively result in a 20% reduction from the baseline daily per capita water use. Existing law requires the Department of Water Resources to develop technical methodologies and criteria, as provided, for purposes of these provisions. This bill would make a nonsubstantive change to the provision requiring the department to develop technical methodologies and criteria. (Based on 02/15/2024 text) AB 3073 (Haney, D) Wastewater testing: illicit substances. Status: 04/24/2024 - In committee: Set, first hearing. Referred to suspense file. Location: 04/24/2024 - Assembly APPR. SUSPENSE FILE Summary: Would require the State Department of Public Health, in consultation with participating wastewater treatment facilities, local public health agencies, and other subject matter experts, to create a pilot program to test for high-risk substances and related treatment medications in wastewater. Under the bill, the goal of the program would be to determine how wastewater data can be used by state and local public health programs to address substance abuse in California. The bill would require the department to develop a list of target substances to be analyzed during the program that may include cocaine, fentanyl, methamphetamine, xylazine, methadone, buprenorphine, and naloxone. The bill would require the department, on or before July 1, 2025, to solicit voluntary participation from local public health agencies and wastewater treatment facilities, as specified. The bill would require the department to work with the participating agencies and facilities to collect samples and to arrange for those samples to be tested by qualified laboratories. The bill would require the department, Page 11 of 21 Page 60 of 170 in consultation with public health agencies and subject matter experts, to analyze test results to determine possible public health interventions. (Based on 03/21/2024 text) AB 3090 (Maienschein, D) Drinking water standards: emergency notification plan. Status: 04/29/2024 - Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0.) In Senate. Read first time. To Com. on RLS. for assignment. Location: 04/29/2024 - Senate Rules Summary: Would authorize and encourage a public water system, when updating an emergency notification plan, to provide notification to water users by means of other communications technology, including, but not limited to, text messages, email, or social media. (Based on 04/18/2024 text) AB 3157 (Papan, D) California Water District Law. Status: 02/17/2024 - From printer. May be heard in committee March 18. Location: 02/16/2024 - Assembly PRINT Summary: The California Water District Law (CWDL) authorizes a water district, by using any water or water supplies furnished to the district or used by the district, to construct, maintain, and operate plants for the generation of hydroelectric power from those water and transmission lines for the conveyance of that power. The CWDL authorizes a water district to join with any other district engaged in distributing water in exercising the powers granted to the district pursuant to that authorization, as described, or to execute joint power agreements with any agency formed for that purpose. This bill would make a nonsubstantive change to the latter authorization. (Based on 02/16/2024 text) AB 3219 (Sanchez, R) Advanced Clean Fleets Regulation: local governments. Status: 03/12/2024 - Re-referred to Com. on TRANS. Location: 03/11/2024 - Assembly Transportation Summary: The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases and requires the state board to adopt rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions from those sources. Pursuant to its authority, the state board has adopted the Advanced Clean Fleets Regulation, which imposes various requirements for transitioning local, state, and federal government fleets of medium- and heavy-duty trucks, other high-priority fleets of medium- and heavy-duty trucks, and drayage trucks to zero-emission vehicles. The Advanced Clean Fleets Regulation authorizes entities subject to the regulation to apply for exemptions from its requirements under certain circumstances. This bill would provide that the requirements of the Advanced Clean Fleets Regulation do not apply to the purchase by a local government of vehicles with a gross vehicle weight rating greater than 8,500 pounds if the price of the zero-emission version of a vehicle is more than an unspecified percentage of the price of a comparable internal combustion engine version of that vehicle. (Based on 03/11/2024 text) AB 3227 (Alvarez, D) California Environmental Quality Act: exemption: stormwater facilities: routine maintenance. Status: 04/25/2024 - Re-referred to Com. on APPR. Location: 04/22/2024 - Assembly Appropriations Page 12 of 21 Page 61 of 170 Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. This bill would, if certain conditions are met, exempt from the provisions of CEQA the routine maintenance of stormwater facilities that are fully concrete or that have a conveyance capacity of less than a 100-year storm event. The bill would, if the lead agency determines that a project is not subject to CEQA pursuant to these provisions and determines to approve or carry out the project, require the lead agency to file a notice with the State Clearinghouse in the Office of Planning and Research and with the county clerk in the county in which the project will be located, as provided, thereby imposing a state-mandated local program. Because a lead agency would be required to determine whether a project qualifies for this exemption, the bill would impose a state-mandated local program. (Based on 04/24/2024 text) ACA 2 (Alanis, R) Water Resiliency Act of 2024. Status: 03/19/2024 - In committee: Set, first hearing. Hearing canceled at the request of author. Location: 04/20/2023 - Assembly Water, Parks and Wildlife Summary: The California Constitution declares that the general welfare requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, and that the right to the use of water does not extend to the waste or unreasonable use, method of use, or method of diversion of water. This measure would require the Treasurer to annually transfer an amount equal to 1.5% of all state revenues from the General Fund to the California Water Resiliency Trust Fund, which the measure would create. The measure would continuously appropriate moneys in the fund to the California Water Commission for its actual costs of implementing these provisions and for specified water infrastructure projects. (Based on 03/06/2024 text) SB 231 (Hurtado, D) Department of Water Resources: water supply forecasting. Status: 09/01/2023 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/23/2023) (May be acted upon Jan 2024) Location: 09/01/2023 - Assembly 2 YEAR Summary: Would require the Department of Water Resources, on or before December 31, 2025, to establish a formal process for annually evaluating and improving the accuracy of its water supply forecasts, adopt a new water supply forecasting model that better addresses the effects of climate change, and implement a formal policy and procedures for documenting its operational plans for the state’s water supply and its rationale for its operating procedures. The bill would require the department, by December 1, 2024, to prepare, and submit to the Legislature, a report on its progress toward meeting these requirements. (Based on 07/12/2023 text) SB 328 (Dodd, D) Political Reform Act of 1974: contribution limits. Status: 09/01/2023 - September 1 hearing: Held in committee and under submission. Location: 08/23/2023 - Assembly APPR. SUSPENSE FILE Summary: The Political Reform Act of 1974 prohibits a person, other than a small contributor committee or political party committee, from making to a candidate for elective state, county, or city office, and prohibits those candidates from accepting from a person, a contribution totaling more than $3,000 per election, as that amount is adjusted by the Fair Political Practices Commission in January of every odd-numbered year to reflect changes in the Consumer Price Index. This bill would apply those contribution limits to candidates for school district, community college district, and other special district elections. The bill would make certain other provisions of the act relating to contribution limits applicable to candidates for district office. However, Page 13 of 21 Page 62 of 170 the bill would authorize school districts, community college districts, and other special districts to impose contribution limits on candidates for district office that differ from the limits imposed by the act, as provided. (Based on 06/28/2023 text) SB 366 (Caballero, D) The California Water Plan: long-term supply targets. Status: 04/08/2024 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on W., P., & W. Location: 06/08/2023 - Assembly Water, Parks and Wildlife Summary: Current law requires the Department of Water Resources to update every 5 years the plan for the orderly and coordinated control, protection, conservation, development, and use of the water resources of the state, which is known as “The California Water Plan.” Current law requires the department to include a discussion of various strategies in the plan update, including, but not limited to, strategies relating to the development of new water storage facilities, water conservation, water recycling, desalination, conjunctive use, water transfers, and alternative pricing policies that may be pursued in order to meet the future needs of the state. Current law requires the department to establish an advisory committee to assist the department in updating the plan. This bill would revise and recast certain provisions regarding The California Water Plan to, among other things, require the department to instead establish a stakeholder advisory committee and to expand the membership of the committee to include tribes, labor, and environmental justice interests. The bill would require the department to coordinate with the California Water Commission, the State Water Resources Control Board, other state and federal agencies as appropriate, and the stakeholder advisory committee to develop a comprehensive plan for addressing the state’s water needs and meeting specified long-term water supply targets established by the bill for purposes of The California Water Plan. The bill would require the plan to provide recommendations and strategies to ensure enough water supply for all designated beneficial uses. (Based on 04/08/2024 text) SB 414 (Allen, D) Climate change: applications using hydrogen: assessment. Status: 09/01/2023 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/16/2023) (May be acted upon Jan 2024) Location: 09/01/2023 - Assembly 2 YEAR Summary: Would, on or before December 31, 2025, require the State Air Resources Board, in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and the Public Utilities Commission (PUC), upon appropriation by the Legislature, to complete an assessment of the use of hydrogen in certain applications, as specified. The bill would require the assessment to incorporate the findings of, and not duplicate, the above-described evaluation. The bill would require the state board, the Energy Commission, and the PUC to consider the findings in the assessment in their plans, rulemakings, reports, or other process related to the planning, implementation, or regulation of hydrogen production, distribution, storage, or usage in the state. (Based on 05/18/2023 text) SB 651 (Grove, R) California Environmental Quality Act: groundwater recharge projects: Judicial Council rules of court. Status: 07/14/2023 - Failed Deadline pursuant to Rule 61(a)(10). (Last location was NAT. RES. on 6/20/2023)(May be acted upon Jan 2024) Location: 07/14/2023 - Assembly 2 YEAR Summary: Would require the Judicial Council to adopt a rule of court to establish procedures requiring actions or proceedings brought to attack, review, set aside, void, or annul the certification of an environmental impact report, or the granting of any project approvals, for groundwater recharge projects, as described, except as provided, that implement a groundwater sustainability plan or an interim groundwater sustainability plan, as described, that would require the actions or proceedings, Page 14 of 21 Page 63 of 170 including any appeals, to be resolved within 270 days of the filing of the certified record of proceedings with the court. The bill would also include a related statement of legislative intent. (Based on 06/22/2023 text) SB 778 (Ochoa Bogh, R) Excavations: subsurface installations. Status: 07/14/2023 - Failed Deadline pursuant to Rule 61(a)(10). (Last location was U. & E. on 6/8/2023)(May be acted upon Jan 2024) Location: 07/14/2023 - Assembly 2 YEAR Summary: The Safe Dig Act establishes a regional notification system to provide certain entities, defined as operators, that own, operate, and maintain subsurface installations with advance warning of nearby excavations or other work for the purpose of protecting those installations from damage, removal, relocation, or repair. Current law establishes the California Underground Facilities Safe Excavation Board, also known as the Dig Safe Board, composed of 9 members, for the enforcement and administration of the Safe Dig Act. Current law requires the Governor to appoint 7 of the board members. This bill would revise the knowledge and experience requirements for 3 of the members appointed by the Governor. (Based on 06/15/2023 text) SB 867 (Allen, D) Drought, Flood, and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based Climate Solutions, Climate Smart Agriculture, Park Creation and Outdoor Access, and Clean Energy Bond Act of 2024. Status: 07/06/2023 - July 10 hearing postponed by committee. Location: 06/20/2023 - Assembly Natural Resources Summary: Would enact the Drought, Flood, and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based Climate Solutions, Climate Smart Agriculture, Park Creation and Outdoor Access, and Clean Energy Bond Act of 2024, which, if approved by the voters, would authorize the issuance of bonds in the amount of $15,500,000,000 pursuant to the State General Obligation Bond Law to finance projects for drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature- based climate solutions, climate smart agriculture, park creation and outdoor access, and clean energy programs. (Based on 06/22/2023 text) SB 903 (Skinner, D) Environmental health: product safety: perfluoroalkyl and polyfluoroalkyl substances. Status: 04/29/2024 - April 29 hearing: Placed on APPR suspense file. Location: 04/29/2024 - Senate APPR. SUSPENSE FILE Summary: Would, beginning January 1, 2032, prohibit a person from distributing, selling, or offering for sale a product that contains intentionally added perfluoroalkyl and polyfluoroalkyl substances (PFAS), as defined, unless the Department of Toxic Substances Control has made a determination that the use of PFAS in the product is a currently unavoidable use, the prohibition is preempted by federal law, or the product is previously used. The bill would specify the criteria and procedures for determining whether the use of PFAS in a product is a currently unavoidable use, for renewing that determination, and for revoking that determination. The bill would require the department to maintain on its internet website a list of each determination of currently unavoidable use, when each determination expires, and the products and uses that are exempt from the prohibition. The bill would impose an administrative penalty for a violation of the prohibition, as specified. The bill would establish the PFAS Penalty Account and require all administrative penalties received to be deposited into that account and, upon appropriation by the Legislature, to be used for the administration and enforcement of these provisions, as specified. (Based on 04/11/2024 text) Page 15 of 21 Page 64 of 170 SB 937 (Wiener, D) Development projects: permits and other entitlements: fees and charges. Status: 04/30/2024 - Read second time. Ordered to third reading. Calendar: 05/02/24 #66 S-SENATE BILLS -THIRD READING FILE Location: 04/30/2024 - Senate THIRD READING Summary: The Permit Streamlining Act, among other things, requires a public agency that is the lead agency for a development project to approve or disapprove that project within specified time periods. Current law extended by 18 months the period for the expiration, effectuation, or utilization of a housing entitlement, as defined, that was issued before, and was in effect on, March 4, 2020, and that would expire before December 31, 2021, except as specified. Current law provides that if the state or a local agency extended the otherwise applicable time for the expiration, effectuation, or utilization of a housing entitlement for not less than 18 months, as specified, that housing entitlement would not be extended an additional 18 months pursuant to these provisions. This bill would extend by 24 months the period for the expiration, effectuation, or utilization of a housing entitlement, entitlement for a priority residential development project, as those terms are defined, that was issued before January 1, 2024, and that will expire before December 31, 2025, except as specified. The bill would toll this 24-month extension during any time that the housing entitlement is the subject of a legal challenge. By adding to the duties of local officials with respect to housing entitlements, this bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (Based on 04/08/2024 text) SB 1072 (Padilla, D) Local government: Proposition 218: remedies. Status: 04/24/2024 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV. Calendar: 05/01/24 S-LOCAL GOVERNMENT 9:30 a.m. - 1021 O Street, Room 2200 DURAZO, MARIA ELENA, Chair Location: 02/21/2024 - Senate Local Government Summary: The California Constitution sets forth various requirements for the imposition of local taxes. The California Constitution excludes from classification as a tax assessments and property-related fees imposed in accordance with provisions of the California Constitution that establish requirements for those assessments and property-related fees. Under these requirements, an assessment is prohibited from being imposed on any parcel if it exceeds the reasonable cost of the proportional special benefit conferred on that parcel, and a fee or charge imposed on any parcel or person as an incident of property ownership is prohibited from exceeding the proportional cost of the service attributable to the parcel. Current law, known as the Proposition 218 Omnibus Implementation Act, prescribes specific procedures and parameters for local compliance with the requirements of the California Constitution for assessments and property-related fees. This bill would require a local agency, if a court determines that a fee or charge for a property-related service, as specified, violates the above- described provisions of the California Constitution relating to fees and charges, to credit the amount of the fee or charge attributable to the violation against the amount of the revenues required to provide the property-related service, unless a refund is explicitly provided for by statute. (Based on 04/24/2024 text) SB 1088 (Alvarado-Gil, D) Office of Emergency Services: state matching funds: water system infrastructure improvements. Status: 04/26/2024 - Set for hearing May 6. Calendar: 05/06/24 S-APPROPRIATIONS 10 a.m. - 1021 O Street, Room 2200 CABALLERO, ANNA, Chair Location: 04/23/2024 - Senate Appropriations Summary: Would, contingent on funding being appropriated pursuant to a bond act, as specified, establish the Rural and Small Community Fire Resilience Program within the OES for the distribution of state matching funds to communities within Page 16 of 21 Page 65 of 170 the Wildland Urban Interface to improve water system infrastructure, as prescribed. The bill would require the OES to work in coordination with the Department of Water Resources, the State Water Resources Control Board, the Office of the State Fire Marshal, and other state entities as the office determines to be appropriate, to achieve the purposes of the program. (Based on 03/18/2024 text) SB 1110 (Ashby, D) Urban retail water suppliers: informational order: conservation order. Status: 04/24/2024 - Read second time and amended. Re-referred to Com. on APPR. Location: 04/23/2024 - Senate Appropriations Summary: Current law authorizes the State Water Resources Control Board, on and after January 1, 2024, to issue informational orders pertaining to water production, water use, and water conservation to an urban retail water supplier that does not meet its urban water use objective, as provided. This bill would instead authorize the board to issue the informational orders on and after January 1, 2026. (Based on 04/24/2024 text) SB 1121 (Grove, R) Recycled water: onsite treated nonpotable water systems: local jurisdiction permitting. Status: 03/12/2024 - April 17 set for first hearing canceled at the request of author. Set for hearing April 17. Location: 02/21/2024 - Senate Environmental Quality Summary: Current law requires the State Water Resources Control Board, in consultation with the California Building Standards Commission and the Department of Housing and Community Development, to adopt regulations for risk-based water quality standards for the onsite treatment and reuse of nonpotable water, and requires a local jurisdiction that elects to establish a program for onsite treated nonpotable water systems to establish design criteria, permitting, cross-connection control, and enforcement procedures, as provided. This bill would require those local jurisdictions to ensure their permitting procedures require the approval of a permit for an onsite treated nonpotable water system within 60 days from the date the permit application is submitted if the application demonstrates that the project meets or exceeds the state board’s water quality standards for the onsite treatment and reuse of nonpotable water for nonpotable uses in multifamily residential, commercial, and mixed-use buildings. (Based on 02/13/2024 text) SB 1147 (Portantino, D) Drinking water: bottled water: microplastics levels. Status: 04/25/2024 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 24). Re-referred to Com. on APPR. Location: 04/25/2024 - Senate Appropriations Summary: The Sherman Food, Drug, and Cosmetic Law regulates, among other things, the manufacture, production, processing, and packing of any food, drug, device, or cosmetic, and is administered by the State Department of Public Health. The law prescribes various quality and labeling standards for bottled water and vended water, and limits the levels of certain contaminants that may be contained in those water products. Current law makes a violation of the law or regulation adopted pursuant to the law a crime. Current law requires, as a condition of licensure, a water-bottling plant, as defined, to annually prepare a water-bottling plant report, as specified, and to make the report available to each customer, upon request. This bill would require, upon adoption by the State Water Resources Control Board of a primary drinking water standard for microplastics, any water-bottling plant that produces bottled water that is sold in this state to provide the State Department of Public Health’s Food and Drug Branch an annual report on the levels of microplastics found in the source water used for bottling and in the final bottled water product that is offered for sale, as provided. The bill would require this report to be included with the annual water-bottling plant report and, upon request, be made available to each consumer. (Based on 04/10/2024 text) Page 17 of 21 Page 66 of 170 SB 1156 (Hurtado, D) Groundwater sustainability agencies: conflicts of interest: financial interest disclosures. Status: 04/30/2024 - Set for hearing May 6. Calendar: 05/06/24 S-APPROPRIATIONS 10 a.m. - 1021 O Street, Room 2200 CABALLERO, ANNA, Chair Location: 04/16/2024 - Senate Appropriations Summary: Current law requires a groundwater sustainability plan to be developed and implemented for each medium- or high-priority basin by a groundwater sustainability agency. Current law authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin, as provided. The Political Reform Act of 1974 prohibits a public official from making, participating in making, or attempting to use their official position to influence a governmental decision in which they know or have reason to know that they have a financial interest, as defined. The act requires specified public officials, including elected state officers, judges and court commissioners, members of certain boards and commissions, other state and local public officials, and candidates for these positions to file statements of economic interests, annually and at other specified times, that disclose their investments, interests in real property, income, and business positions. The Fair Political Practices Commission is the filing officer for such statements filed by statewide elected officers and candidates and other specified public officials. This bill would require members of the executive team, board of directors, and other groundwater management decision makers of groundwater sustainability agencies to file statements of economic interests according to the filing requirements described above. The bill would require that these statements be filed with the Fair Political Practices Commission, and would require the commission to establish guidelines and procedures for the submission and review of the statements. (Based on 04/29/2024 text) SB 1178 (Padilla, D) California Water Quality and Public Health Protection Act. Status: 04/29/2024 - Read second time and amended. Re-referred to Com. on REV. & TAX. Withdrawn from committee. Re- referred to Com. on APPR. Location: 04/29/2024 - Senate Appropriations Summary: The State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the federal national pollutant discharge elimination system permit program established by the federal Clean Water Act and the Porter-Cologne Water Quality Control Act. This bill would require the board to, on or before August 1, 2025, establish regulations governing annual reporting by compliance entities, as defined, regarding waste discharges, as provided. The bill would require compliance entities to submit a report to the board by June 1, 2026, and annually thereafter on waste discharges and their locations, as provided. The bill would require the board to quantify the cost of mitigating contamination, if any, caused by those reported waste discharges and would require the board to notify the compliance entities of the cost of mitigating their contamination. The bill would authorize the compliance entity to elect to mitigate the contamination caused by the entity’s reported waste discharges, or to have the board impose a surcharge for the cost of mitigating the compliance entity’s contamination. The bill would create the California Water Quality and Public Health Impact Fund for receipt of revenue from the surcharge. The bill would require the moneys in the fund to be used exclusively to mitigate the impacts of the contamination on waters of the state caused by the reported waste discharges. (Based on 04/29/2024 text) SB 1188 (Laird, D) Drinking water: technical, managerial, and financial standards. Status: 04/29/2024 - April 29 hearing: Placed on APPR suspense file. Location: 04/29/2024 - Senate APPR. SUSPENSE FILE Summary: The California Safe Drinking Water Act imposes on the State Water Resources Control Board various responsibilities and duties relating to providing a dependable, safe supply of drinking water. Current law requires the state Page 18 of 21 Page 67 of 170 board to directly enforce the provisions of the act for all public water systems, except as specified. The act prohibits a person from operating a public water system unless the person first submits an application to the state board and receives a permit to operate the system, as specified. Current law authorizes the state board to impose permit conditions, requirements for system improvements, technical, financial, or managerial requirements, and time schedules as it deems necessary to ensure a reliable and adequate supply of water at all times that is pure, wholesome, potable, and does not endanger the health of consumers. Current law makes it a crime to knowingly make any false statement or representation in any application, record, report, or other document submitted, maintained, or used for purposes of compliance with the act. This bill would require the state board to develop and adopt minimum standards related to the technical, managerial, and financial capacity of public water systems with fewer than 10,000 service connections. The bill would require public water systems with fewer than 10,000 service connections to have the capacity to demonstrate compliance with those standards, as provided. This bill would prohibit the state board and the Department of Water Resources from granting or loaning state funding to a public water system that fails to comply with the bill unless the state board or department makes a finding regarding at least one of 3 specified conditions. (Based on 03/18/2024 text) SB 1210 (Skinner, D) New housing construction: electrical, gas, sewer, and water service: service connection information. Status: 04/26/2024 - Set for hearing May 6. Calendar: 05/06/24 S-APPROPRIATIONS 10 a.m. - 1021 O Street, Room 2200 CABALLERO, ANNA, Chair Location: 04/17/2024 - Senate Appropriations Summary: Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations, gas corporations, sewer system corporations, and water corporations, while local publicly owned utilities, including municipal utility districts, public utility districts, and irrigation districts, are under the direction of their governing boards.This bill would, for new housing construction, require the above-described utilities, on or before January 1, 2026, to publicly post on their internet websites (1) the schedule of fees for a service connection, capacity, or other point of connection charge for each housing development type, including, but not limited to, accessory dwelling unit, mixed-use, multifamily, and single-family developments, except as specified, and (2) the estimated timeframes for completing typical service connections needed for each housing development type, as specified. The bill would exempt from its provisions an independent special district that does not maintain an internet website due to a hardship, as provided. To the extent that this bill imposes new requirements on certain local agencies, the bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws. (Based on 04/22/2024 text) SB 1218 (Newman, D) Water: emergency water supplies. Status: 04/26/2024 - Set for hearing May 6. Calendar: 05/06/24 S-APPROPRIATIONS 10 a.m. - 1021 O Street, Room 2200 CABALLERO, ANNA, Chair Location: 04/23/2024 - Senate Appropriations Summary: Would declare that it is the established policy of the state to encourage and incentivize, but not mandate, the development of emergency water supplies, and to support their use during times of water shortage. (Based on 02/15/2024 text) SB 1266 (Limón, D) Product safety: bisphenol. Status: 04/24/2024 - Read second time and amended. Re-referred to Com. on APPR. Location: 04/22/2024 - Senate Appropriations Summary: Current law prohibits the manufacture, sale, or distribution in commerce of any bottle or cup that contains bisphenol A, as specified, if the bottle or cup is designed or intended to be filled with any liquid, food, or beverage intended primarily for consumption by children 3 years of age or younger. The prohibition above does not apply to a product subject to a Page 19 of 21 Page 68 of 170 regulatory response by the department as of the date that the department posts a prescribed notice regarding the department’s adoption of the regulatory response. Current law additionally requires manufacturers to use the least toxic alternative when replacing bisphenol in containers and prohibits manufacturers from replacing bisphenol A with chemicals known to cause cancer or reproductive harm, as specified. This bill would, on and after January 1, 2026, apply the above prohibitions and requirements to any juvenile’s feeding product or juvenile’s sucking or teething product, as defined, that contains any form of bisphenol, as defined, at a detectable level above 0.1 parts per billion. The bill would authorize the department to establish standards for the juvenile’s products above that are more protective of public health, sensitive populations, or the environment than the standards established by the bill. The bill would additionally prohibit manufacturers from replacing any form of bisphenol with any chemical identified by the department as a Candidate Chemical, as specified. (Based on 04/24/2024 text) SB 1330 (Archuleta, D) Urban retail water supplier: water use. Status: 04/24/2024 - Read second time and amended. Re-referred to Com. on APPR. Location: 04/23/2024 - Senate Appropriations Summary: Current law requires an urban retail water supplier to calculate its urban water use objective no later than January 1, 2024, and by January 1 every year thereafter. Current law requires each urban retail water supplier’s water use objective to be composed of the sum of specified aggregate estimates, including efficient outdoor irrigation of landscape areas with dedicated irrigation meters or equivalent technology in connection with water used by commercial water users, industrial water users, institutional water users, and large landscape water users (CII). Existing law requires an urban retail water supplier to submit reports to the Department of Water Resources, as provided, by the same dates. This bill would require the department to collect and update data for outdoor residential landscapes and CII landscapes at least once every 10 years and post the data on its internet website. (Based on 04/24/2024 text) SB 1360 (Alvarado-Gil, D) Water quality: state board certification. Status: 03/18/2024 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. Location: 02/16/2024 - Senate Rules Summary: The Porter-Cologne Water Quality Control Act authorizes the State Water Resources Control Board to certify or provide a statement to a federal agency, as required pursuant to federal law, that there is reasonable assurance that an activity of any person subject to the jurisdiction of the state board will not reduce water quality below applicable standards. The federal act provides that if a state fails or refuses to act on a request for this certification within a reasonable period of time, which shall not exceed one year after receipt of the request, then the state certification requirements are waived with respect to the federal application. Current law authorizes the state board to issue the certificate or statement before completion of the required environmental review if the state board determines that waiting until completion of that environmental review to issue the certificate or statement poses a substantial risk of waiver of the state board’s certification authority under the Federal Water Pollution Control Act or any other federal water quality control law, as provided. This bill would require the state board to issue the certificate or statement before completion of the required environmental review if the state board and Governor’s Office of Business and Economic Development, in consultation with an applicant, jointly determine that the applicant’s project will help the state meet its clean energy goals and increase electric reliability and waiting until completion of that environmental review to issue the certificate or statement poses a risk to the applicant of not being eligible for federal tax credits or incentives, as provided. (Based on 03/18/2024 text) SB 1390 (Caballero, D) Groundwater recharge: floodflows: diversion. Status: 04/24/2024 - Read second time and amended. Re-referred to Com. on APPR. Page 20 of 21 Page 69 of 170 Location: 04/23/2024 - Senate Appropriations Summary: Current law declares that all water within the state is the property of the people of the state, but the right to the use of the water may be acquired by appropriation in the manner provided by law. Current law requires the appropriation to be for some useful or beneficial purpose. Current law provides, however, that the diversion of floodflows for groundwater recharge does not require an appropriative water right if certain conditions are met, including that a local or regional agency that has adopted a local plan of flood control or has considered flood risks as part of its most recently adopted general plan has given notice, as provided, of imminent risk of flooding and inundation of lands, roads, or structures. Current law also requires the person or entity making the diversion for groundwater recharge purposes to file with the State Water Resources Control Board a final report 15 days after the diversions cease. These requirements apply to diversions commenced before January 1, 2029. This bill would extend the operation of these requirements to diversions commenced before June 1, 2032. The bill would revise, recast, and expand the conditions that are required to be met for the diversion of floodwaters for groundwater recharge that do not require an appropriative water right. The bill would require that a local or regional agency take specified actions, including making a declaration that diversion of floodflows for groundwater recharge from a delineated stretch of waterway within its jurisdiction is in accordance with one of certain enumerated plans relating to flood control or flood risk, as specified, or a county emergency operations plan. The bill would require diversions to cease no later than 90 days after commencing, unless they are renewed, and would authorize a local or regional agency to renew a diversion for an additional 30 days by notifying the board of its intention to continue diverting 15 days before its expiration. (Based on 04/24/2024 text) Page 21 of 21 Page 70 of 170 ITEM NO. 9.1. AGENDA REPORT MEETING DATE: May 16, 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 March 14 - 28, 2024 RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: 1. 2024-03-14 - Minutes - BOD Regular Meeting 2. 2024-03-26 - Minutes - BOD Special Meeting 3. 2024-03-28 - Minutes - BOD Regular Meeting Page 71 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 14, 2024, 8:30 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 8:30 a.m. 3. PLEDGE OF ALLEGIANCE Director Hernandez led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Doug Davert, Assistant General Manager Brett R. Barbre Delia Lugo, Finance Manager Gene Hernandez Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager DIRECTORS ABSENT Joanna Gonzalez, Public Affairs Officer Phil Hawkins Bree Jozwiak, Assistant Board Secretary Freddie Ojeda, Operations Superintendent ALSO PRESENT Andrew Gagen, General Counsel, Kidman Gagen Law LLP 5. ADDITIONS/DELETIONS TO THE AGENDA (None) 6. AB 2449 TELECONFERENCE REQUESTS (None) 7. INTRODUCTIONS and PRESENTATIONS 7.1.Elected Official Liaison Reports Leandre Blades, President for PYLUSD, discussed concerns with a hydrant out of service near the school at the southwest corner of Yorba Linda Boulevard and Fairmont Boulevard. It was determined that the hydrant belonged to Golden State Water Company. The Board requested staff contact Golden State and offer assistance if needed. Page 72 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 2 2024-XXX 7.2 Introduction of New Hires General Manager Toy introduced the following newly hired employees: Brianna N. De La Cruz, Public Affairs Specialist Daniel Watts, Public Affairs Intern 7.3 Overview of Pure Water Southern California and Status of Diemer Plant Heli- Hydrant Project John Bednarski, Chief Engineer at Metropolitan Water District, reviewed key components of the Pure Water program and the status of the heli-hydrant project. Topics included the water supply strategy, challenges with import water supplies, and wastewater collection, treatment, and groundwater recharge in the County of Los Angeles. Mr. Bednarski also reviewed the benefits and phases of the Pure Water program, program partners, associated project budget, and project schedule. He then provided an overview of the key activities and tentative schedule for the heli-hydrant project and responded to questions from the Board. The Board requested staff look into whether a shutdown of the Diemer Plant would be necessary to connect the treated water to the heli-hydrant. 8. PUBLIC COMMENTS (None) 9. CONSENT CALENDAR Director Barbre inquired about an expense under Item No. 9.1. related to the purchase of a truck body and requested to remove Item No. 9.5 from the Consent Calendar for separate action. Vice President Lindsey also requested to remove the same item. Director Hernandez made a motion, seconded by Director Barbre, to approve the remainder of the Consent Calendar. Motion carried 4-0-0-1 with Director Hawkins absent. 9.1.Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,961,393.80. 9.2.Budget to Actual Statements for the Period Ended January 31, 2024 Recommendation: That the Board of Directors receive and file the Budget to Actual Reports for the Period Ended January 31, 2024. Page 73 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 3 2024-XXX 9.3.Cash and Investment Reports for the Period Ended January 31, 2024 Recommendation: That the Board of Directors receive and file the Cash and Investment Reports for the Period Ended January 31, 2024. 9.4.Terms and Conditions with F&P Agahi Irrevocable Trust Recommendation: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with F&P Agahi Irrevocable Trust for 4682 Lakeview Avenue, Job No. J-2024-08. 9.6.Notice of Exemption for Well No. 5 Rehabilitation Project Recommendation: That the Board of Directors consent to filing a Notice of Exemption (NOE) with the Orange County Clerk Recorder’s office for the Well No. 5 Rehabilitation Project, Job No. J-2023-55. 9.7.Notice of Exemption for Well No. 19 Rehabilitation Project Recommendation: That the Board of Directors consent to filing a Notice of Exemption (NOE) with the Orange County Clerk Recorder’s office for the Well No. 19 Rehabilitation Project, Job No. J-2023-44. 9.8.Notice of Exemption for Elk Mountain Booster Pump Station Leak Repair Project Recommendation: That the Board of Directors consent to filing a Notice of Exemption (NOE) with the Orange County Clerk Recorder’s office for the Elk Mountain Booster Pump Station Leak Repair Project, Job No. J-2023-33. 9.9.Notice of Completion for Imperial Waterline Improvement Project Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for the Imperial Waterline Improvement Project, Job No. J-2021-46. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION Vice President Lindsey clarified that he had intended to request removal of Item No. 9.4. from the Consent Calendar as he had some related questions. He then inquired whether the terms and conditions in this case were indicative of what other customers desiring sewer service might need to comply with. Staff indicated that this situation was more complex. 9.5.Ratification of Emergency Procurement for Well No. 5 Rehabilitation Project Director Barbre inquired as to whether this request qualified as an emergency in accordance with the District’s purchasing policy and expressed his concern regarding a potential loophole. General Counsel Gagen and staff reviewed the circumstances resulting in the determination. Staff is preparing proposed revisions to the purchasing policy to address Page 74 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 4 2024-XXX these situations for Board consideration. Director Barbre suggested staff prepare a broad authorization for wells for Board consideration. Director Barbre made a motion, seconded by Director Director Hernandez, to make a finding based on evidence presented by staff that the General Manager’s expenditure for the rehabilitation of the Well No. 5 Rehabilitation project was necessary and constituted an emergency as set forth in Section 10.0 of the District’s Purchasing Policy. Motion carried 4-0-0-1 with Director Hawkins absent. 10. ACTION CALENDAR 10.1.Amending Board of Directors Policies and Procedures Manual Staff reviewed the proposed revisions to the manual. Director Barbre distributed a copy of MET’s Board rules of conduct and proposed alternate revisions to the manual. The Board reviewed the handout and discussed what verbiage should be revised, if any. Scott Tiedemen, Partner for Liebert Cassidy Whitmore, commented on the proposed alternate revisions to the manual and advised that some of the language being considered was unnecessary and could potentially create confusion. Mr. Tiedeman then responded to questions from the Board. Director Barbre made a motion, seconded by Director Lindsey, to approve Resolution No. 2024-XX amending Sections 4.2(A)(3), 4.2(G), 4.2(I), and 4.2(J) of the Board of Directors Policies and Procedures Manual with the addition of language in section 4.23(A)(3)(b) stating that the investigation shall be fair, thorough and unbiased. Motion carried 4-0-0-1 on a roll call vote with Director Hawkins absent. 10.2.Format of Interviews for General Legal Counsel Services The Board discussed whether to allow the firms to provide a presentation as part of their interviews and if so, the associated time limit. The Board also discussed requesting the firms be present in the room for their respective interviews only and confirmed that all interviews would be conducted in open session. Director Barbre made a motion, seconded by Director Lindsey, to give the firms the option of providing an approximate 5-minute opening statement, to be followed by questions from the Board, and ending with a closing statement. Motion carried 4-0-0-1 with Director Hawkins absent. Page 75 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 5 2024-XXX 10.3.Guidelines for Incident Notification to the Board of Directors Staff provided an overview of the draft guidelines. President DesRoches requested that the words “after-duty hours” be removed from the first sentence of the document. Director Barbre requested that posting an emergency landing page on the District’s website be included as part of the social media emergency notifications. Discussion touched on the Directors’ preferred method of contact for emergencies. General Manager Toy agreed to contact the Board using multiple methods to ensure the message gets to them as soon as possible. Director Barbre requested Board notification of public records requests be added. Staff will look into automating the notifications to the Board via email. President DesRoches inquired if social media would be updated as emergencies are happening. General Manager Toy confirmed that all outlets would be updated to the best of staff’s ability. Director Hernandez suggested that Google alerts be created to notify individual Board members of relevant content on the internet when published. Director Barbre made a motion, seconded by Director Hernandez, to approve the guidelines for incident notification to the Board with the following revisions: eliminate the language in the guidelines regarding after- hours notifications, include the creation of an emergency landing page on the District’s website when appropriate, and include Board notification of public records requests. Motion carried 4-0-0-1 with Director Hawkins absent. 10.4.2024 YLWD Infrastructure Tours Staff reviewed the proposed plan for infrastructure tours during the 2024 calendar year. Director Hernandez shared highlights of his meeting with staff to discuss community outreach efforts and infrastructure tours and commended staff on the activities already taking place. He shared that staff was obtaining cost and time estimates for the installation of QR codes at District facilities. Director Barbre suggested conducting fire-hardening tours in the fall and potentially involving CAL FIRE and OCFA. Director Hernandez noted that this was included as part of the discussion. Discussion continued regarding including costs of the facilities on the tours, which months would be best to conduct them, and having the Directors personalize their tour routes if desired. President DesRoches commended staff on the proposed plan and their efforts. Page 76 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 6 2024-XXX Director Barbre made a motion, seconded by Director Hernandez, to approve the plan for infrastructure tours with revisions as noted in the discussion. Motion carried 4-0-0-1 with Director Hawkins absent. 10.5.Rescheduling Regular Board Meeting on Thursday, May 9, 2024 Due to Conflict with ACWA Spring Conference Staff noted that the May 9, 2024 Board meeting conflicts with the ACWA Conference that key staff and a Director will be attending and proposed moving both May meetings forward one week, with the new dates for the Regular Board Meetings to be May 16, 2024 and May 30, 2024. Discussion followed regarding the Directors’ individual schedules. Director Hernandez made a motion, seconded by Director Lindsey, to approve rescheduling the May Board meetings to Thursday, May, 16, 2024 and Thursday, May 30, 2024. Motion carried 4-0-0-1 with Director Hawkins absent. 11. DISCUSSION ITEMS 11.1.Travel and Expense Reimbursement Policy Comparison Staff reviewed a comparison of the District’s travel expense reimbursement policy with those from the City of Brea and City of Yorba Linda. Staff discussed the three options by which an agency may have a travel expense reimbursement plan, including an accountable plan, an unaccountable plan, and a per diem or other fixed allowance plan. Staff indicated that the District currently follows an accountable plan that requires receipts and submission of an expense report. Staff also noted that both the City of Brea and the City of Yorba Linda operate under a type of accountable plan, which requires the submission of receipts and expense reports. Staff then reviewed the daily meal allowances for each agency and asked if the Board desired to make any revisions to the District’s travel expense reimbursement policy. Director Hernandez asked if credit card statements would suffice as receipts. Staff advised that a statement would not suffice as a receipt as the District’s policy requires itemized receipts under the accountable plan and IRS requirements. Discussion continued regarding lodging rates for conferences and amounts for meals during travel. Finance staff will review Directors’ expense reports before being submitted to the President/Vice President for review and approval. No revisions to the District’s policy were requested at this time. Page 77 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 7 2024-XXX 12. REPORTS, INFORMATION ITEMS, AND COMMENTS 12.1.Director’s Reports The Directors reported on their attendance at recent meetings and events. Vice President Lindsey noted that the Financial Review Group had moved its meetings from the second Tuesday of the month at 8:00 a.m. to 4:30 p.m. He also noted that Captain De Anne Wigginton from OC Sheriff had been appointed as the Chief of Police Services for the City of Yorba Linda and requested staff invite her to a future Board meeting. He then requested staff provide the Board with information regarding a community meeting to discuss wildfire insurance scheduled Wednesday, March 27, 2024 at 6:00 p.m. Vice President Lindsey then requested staff work on scheduling a committee meeting with the City of Yorba Linda to discuss permitting procedures between both agencies. Lastly, he requested an update on scheduling the renaming ceremony for the PFAS Water Treatment Plant. Staff reported that the event was scheduled for Tuesday, April 16, 2024 at 1:00 p.m. The Directors continued reporting on their meeting attendance. 12.2.General Manager’s Report General Manager Toy referenced his report included in the agenda packet. He highlighted the strategic plan and explained that the assigned teams would be reaching out to individual Directors to finalize any remaining edits. The final draft will be presented for Board consideration at the meeting scheduled Thursday, April 11, 2024. General Manager Toy and staff then responded to questions regarding the exploration of a hybrid work schedule, staff attendance at a SWRCB workshop on Wednesday, March 20, 2024, the State’s proposed cuts in water consumption for 2025/2030/2035, the access road at Highland Reservoir, and the status of implementing ACH payments to vendors. Director Barbre suggested having a video produced with President DesRoches and a representative from CAL FIRE regarding the Wells Fargo Heli-hydrant and asked when the District’s contract with Comm LAB was set to expire and whether the Board should consider issuing an RFP for these services. 12.3.General Counsel’s Report (None) 12.4.Future Agenda Items and Staff Tasks Director Barbre requested staff schedule a CIP tour for the Board. Page 78 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 8 2024-XXX 13. COMMITTEE REPORTS 13.1.Interagency Committee with MWDOC and OCWD DesRoches/Lindsey 13.2.Joint Agency Committee with City of Yorba Linda Lindsey/DesRoches 13.3.Joint Agency Committee with City of Placentia Lindsey/Hernandez 13.4.Joint Agency Committee with City of Brea Barbre/Hernandez 13.5.Joint Agency Committee with Placentia-Yorba Linda Unified School District Hernandez/Barbre 14. BOARD OF DIRECTORS ACTIVITY CALENDAR 14.1.Meetings from March 15 – April 30, 2024 President DesRoches noted that no Director was assigned to attend the Brea City Council meeting on April 16, 2024. Staff will contact Director Hawkins to see if can attend. 15. CLOSED SESSION The Board entered Closed Session at 11:32 a.m. 15.1.Liability Claims Pursuant to Subsections 54956.9(d) and (e)(3) of the CA Government Code Claimants: Pascal & Ludwig Constructors and Mike Bubalo Construction Agency Claimed Against: Yorba Linda Water District 15.2.Public Employee Performance Evaluation Pursuant to Section 54957 of the CA Government Code Title: General Manager Page 79 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 14, 2024 at 8:30 a.m. 9 2024-XXX 16. REPORT FROM CLOSED SESSION The Board returned from Closed Session at 11:49 a.m. General Counsel Gagen reported that the Board took reportable action on Item 15.1 to reject the claim jointly submitted by Pascal & Ludwig and Michael Bubalo Construction. General counsel will provide a written response memorializing this action. 17. ADJOURNMENT 17.1.The meeting was adjourned at 11:50 a.m. Annie Alexander Recording Secretary Page 80 of 170 Minutes of the YLWD Board of Directors Special Meeting Held March 26, 2024 at 8:30 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, March 26, 2024, 8:30 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 8:30 a.m. 3. PLEDGE OF ALLEGIANCE Director Hawkins led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Lori Thompson, Human Resources and Risk Manager Brett R. Barbre Rosanne Weston, Engineering Manager Director Hawkins Annie Alexander, Board Secretary Gene Hernandez Freddie Ojeda, Operations Superintendent Sophia Phoung, Accounting Supervisor 5. AB 2449 TELECONFERENCE REQUESTS (None) 6. PUBLIC COMMENTS (None) 7. DISCUSSION ITEMS 7.1.Interviews for Legal Counsel Services Discussion touched on the sample interview questions, the format of the interviews, the date for consideration of contract award, and the financial analysis and services comparison prepared by staff. The Board then began their first interview with Atkinson, Andelson, Loya, Ruud & Romo (AALRR). David Boyer, Partner, introduced himself and members of the firm’s team including Suparna Jain, Partner; Kevin Dale, Partner; Jeff Hoskinson, Partner; and Eddy Beltran, Of Counsel. Mr. Boyer provided historical background on the firm and the practice’s services and accomplishments. Mr. Boyer and his team then responded to questions Board regarding the provision of AB1234/AB1825 training, the quoted rates for services, availability to attend Board meetings, and overall philosophy when providing legal advice. Questions also touched on the firm’s experience addressing PFAS, Page 81 of 170 Minutes of the YLWD Board of Directors Special Meeting Held March 26, 2024 at 8:30 a.m. 2 2024-XXX identifying regulations and potential issues that could impact the District, services that the firm may outsource, and handling potential conflicts of interest. Mr. Boyer also clarified the circumstances involving Kidman Gagen Law’s reference to utilizing AALRR for labor and employment legal services and provided an overview of his professional background. He then reviewed the firm’s process for taking on new clients and handling encroachment issues. Mr. Hoskinson also commented on the firm’s handling of encroachment issues. Mr. Beltran and Mr. Dale shared their professional experience and Mr. Boyer offered his closing remarks and thanked the Board for the opportunity to participate in the interview process. The meeting was recessed at 9:55 a.m. and reconvened at 10:00 a.m. The Board proceeded with interviewing Aleshire & Wynder. Fred Galante, Equity Partner, introduced himself and members of the firm’s team including Martin Koczanowicz, Partner, and Christine Carson, Partner. Ms. Carson and Koczanowicz then provided an overview of their professional background. Mr. Galante then reviewed the firm’s services and proposed rates and Ms. Carson highlighted some of the firm’s accomplishments and litigation successes. Mr. Galante and his team then responded to questions regarding Proposition 218 litigation, the proposed fees for services, previous experience with politically charged situations, experience in labor and employment law, and availability to attend Board meetings. Questions also touched on the firm’s specialties, presence in Sacramento and Washington DC, circumstances in which the firm might consider engaging special counsel, and the provision of AB1234/AB1825 training. Mr. Galante then reviewed the firm’s process for taking on new clients and responded to additional questions regarding the appropriateness of meeting with individual Directors and providing legal advice that may not be well received. He then offered his closing comments and expressed his appreciation for the opportunity to interview. The meeting was recessed at 10:49 a.m. and reconvened at 10:56 a.m. The Board proceeded with interviewing Kidman Gagen Law. Andrew Gagen, Partner, introduced members of the firm’s team including Art Kidman, Partner; Kari Vozenilek, Partner; Steven Guess, Senior Associate; and Patricia Parker, Senior Associate. Mr. Gagen then summarized his professional background and professional experience working with the District and commented on the firm’s rates. Mr. Gagen responded to questions regarding the firm’s services, presence in Sacramento in Washington DC, the provision of AB1234/AB1825 training, and services the firm may choose to outsource. Questions also touched on difficult situations previously handled by the firm, issues the District may be facing, methods utilized to cultivate relationships with the Board and management, and the appropriateness of General Counsel meeting with individual Directors. Ms. Vozenilek provided an overview of her professional experience and responded to questions regarding tribal water rights. Page 82 of 170 Minutes of the YLWD Board of Directors Special Meeting Held March 26, 2024 at 8:30 a.m. 3 2024-XXX Mr. Kidman commented on his long-term experience working with the District and a previous challenging situation wherein he would have advised the matter be referred to outside counsel. Mr. Guess and Ms. Parker provided an overview of their professional background. Mr. Gagen then offered clarification regarding Kidman Gagen Law’s proposal indicating the utilization of AALRR for labor and employment legal services. He then provided his closing comments and expressed the firm’s desire to continue its work for the District. The meeting was recessed at 11:35 a.m. and reconvened at 11:55 a.m. The Board proceeded with interviewing Richards Watson Gershon. Nick Ghirelli, Shareholder, introduced a member of the firm’s team, Kyle Brochard, Shareholder, and provided an overview of the other team members' specialties who were not physically present. Mr. Ghirelli then summarized the team's professional background and projects of note. He also reviewed the firm’s services and responded to questions regarding their process for taking on new clients and providing legal advice that may not be well received. Questions also touched on adjudicated groundwater basins, the appropriateness of meeting with individual Directors, handling of encroachment issues, and issues the District may be facing. Additional topics included legal services provided in-house, presence in Sacramento in Washington DC, provision of AB1234/AB1825 training, and handling of complaints related to labor issues. Mr. Ghirelli then reviewed the firm’s proposed fees for service and offered his closing remarks. The Board discussed the current budget for legal services, the financial analysis comparison prepared by staff, and a potential discrepancy regarding Kidman Gagen Law’s arrangement with AALRR for the provision of labor and employment services. Staff will obtain clarification from both firms regarding this matter. Discussion followed regarding the process for determining which of the four firms the contract was to be awarded which was scheduled for the regular Board meeting on April 11, 2024. 8. ADJOURNMENT 8.1.The meeting was adjourned at 12:37 p.m. Annie Alexander Board Secretary Page 83 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2024 at 8:30 a.m. 1 2024-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 28, 2024, 8:30 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 8:30 a.m. 3. PLEDGE OF ALLEGIANCE Director Hernandez led the pledge. 4. ROLL CALL DIRECTORS PRESENT STAFF PRESENT Trudi DesRoches, President Mark Toy, General Manager Tom Lindsey, Vice President Doug Davert, Assistant General Manager Brett R. Barbre John DeCriscio, Operations Manager Phil Hawkins Delia Lugo, Finance Manager Gene Hernandez Lori Thompson, Human Resources and Risk Manager Rosanne Weston, Engineering Manager Annie Alexander, Board Secretary Paige Appel, Budget Analyst Brianna De La Cruz, Public Affairs Specialist Sophia Phuong, Accounting Supervisor 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. DISCUSSION ITEMS The following items were taken out of order. Page 84 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2024 at 8:30 a.m. 2 2024-XXX 8.2.Fiscal Year 2024-25 Proposed Water and Sewer Customer and Developer Fees Staff reviewed the water and sewer customer and developer fees for FY23-24 and those proposed for FY24-25. Director Barbre requested an update on the Septic to Sewer Conversion Evaluation Project. General Manager Toy will include this with his report at the next Board meeting. Vice President Lindsey suggested staff keep the current fee schedules of surrounding cities on file for comparison. Director Barbre suggested doing the same for water and sewer rates of local agencies. 8.1.Fiscal Year 2024-25 Budget Workshop #2 Staff reviewed the proposed rates and impact on an average customer's bill. Director Barbre requested staff identify the amount included in the commodity rate not directly related to the provision of water service. Discussion touched on pass-through expenses and collection limitations. President DesRoches expressed concern regarding utilizing an average of the last 5 years of water consumption data for projections. Staff suggested that utilizing an average of 3 years may be helpful. Director Barbre suggested utilizing an average of the last 10 years of data and asked about the feasibility of reducing rates mid-year. Staff will prepare a new slide with projections based on an average of 3 years of consumption data (budget vs. actual) and include it with General Manager Toy’s report at the next Board meeting. Staff then reviewed projected revenue, supplies, and services, as compared to prior year actuals, the current budget, and the Rate Study. Staff also reviewed notable variances and will provide additional information regarding expenses for dues and memberships at the next budget workshop. Director Barbre requested that expenses for routine customer notifications be separated from public outreach activities under the Communications category. He also requested that the description for the Data Processing category be updated to reflect current terminology. Discussion continued regarding increased costs for insurance, maintenance, professional services, and non-operating expenses. Staff then presented a consolidated financial summary of the proposed budget and responded to questions related to depreciation and capital contributions. Director Barbre requested that the term “Net Income” be revised to “Net Position” and for staff to look into the feasibility of issuing debt for the sewer fund. Staff provided an overview of the 5-year Capital Improvement Plan and proposed budget for the next fiscal year. Discussion touched on individual projects, available and pending funding, and new projects that were not included in the 2018 Asset Management Plan. Page 85 of 170 Minutes of the YLWD Board of Directors Regular Meeting Held March 28, 2024 at 8:30 a.m. 3 2024-XXX Staff then confirmed requests made during the workshop including: ▪Report on status of the Septic to Sewer Conversion Evaluation Project. ▪Perform analysis utilizing an average of 3 years of water consumption data for projections. Staff may provide this to the Financial Review Group prior to presenting it to the Board. ▪Confirm whether utilizing an average of 5 years of water consumption data for projections is still valid. Staff will try to include this information with General Manager Toy’s next monthly report. ▪Provide more detail for dues and memberships and confirm whether employee certifications are included. ▪Change references to “net income” to “net position”. ▪Look into the discrepancy in net position on the consolidated financial summary. ▪Create a bar chart comparing budgeted versus actual water consumption for the last 10 years. Staff will try to provide this to the Board before the next meeting. ▪Prepare a comparison of fee schedules for the cities of Brea, Anaheim, Placentia, and Yorba Linda. ▪Determine the amount of fixed costs still included in the commodity rate. ▪Communicate that the pass-through rate is 19 cents less than applicable expenses in future customer outreach efforts. ▪Separate the expenses for routine customer notifications from public outreach activities under the Communications category. ▪Ensure that budget category descriptions are utilizing current terminology. ▪Explore the feasibility of issuing debt for the sewer fund. ▪Schedule a CIP tour for the Board in May. ▪Identify the impact of proposed rates on the average residential customer’s bill. 9. ADJOURNMENT 9.1.The meeting was adjourned at 10:44 a.m. Annie Alexander Board Secretary Page 86 of 170 ITEM NO. 9.2. AGENDA REPORT MEETING DATE: May 16, 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 $3,895,222.08. 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 March 28, 2024, through May 9, 2024, for the Board of Directors’ approval. Items within this disbursement list include: Ten Highest Expenses for Disbursement City Of Yorba Linda 669,900.00 FY 22/23 Valve Can & Manhole Adjustment Project ACWA/JPIA 160,458.95 Medical & Dental Premium May 202 Southern Calif Edison Co. 148,198.00 Electricity Charges - March 2024 Various Loc Pacific Hydrotech Corporation 131,517.52 J20-37 Timber Ridge Professional Svcs Municipal Water District 101,532.88 Water Deliveries - Feb 2024 Kidman Gagen Law 89,784.18 Legal Services - Mar 2024 A & Y Asphalt Contractors Inc. 66,877.00 Vault Adjustment - Mission Hills Lane GCI Construction Inc. 55,004.57 J20-63S Main Street Sewer Replacement Svcs Big Ben Inc. 54,729.04 J23-54 Copper Canyon Waterline Repair ACWA/JPIA 50,134.80 Workers Comp 1/1/24-3/31/24 Page 87 of 170 $ 1,528,136.94 Other Routine Invoices $ 1,206,094.29 Accts Payable Check Total $ 2,734,231.23 Payroll No. 07 Payroll No. 08 Payroll No. 09 $ 384,942.05 390,076.87 385,971.93 Total Disbursements $ 3,895,222.08 A summary of the disbursements is attached. ATTACHMENTS: 1. Cap Sheet for May 16, 2024 2. Check Register for April 11, 2024 3. Check Register for April 25, 2024 4. Check Register for May 9, 2024 5. Credit Card Register for April 11, 2024 6. BOD Credit Card Register for April 11, 2024 7. Credit Card Register for May 9, 2024 8. BOD Credit Card Register for May 9, 2024 Page 88 of 170 CHECK NUMBERS: 4/11/2024 Computer Checks 83959-84027 597,626.40$ 4/25/2024 Computer Checks 84032-84106 1,388,729.81 5/9/2024 Computer Checks 84118-84194 470,782.84 2,457,139.05$ WIRES: W040924 Southern Calif Edison Co. 148,198.00$ W041124 Southern Calif Gas Co. 14,073.42 W041124A Switch Ltd 741.00 W041524 Municipal Water District 101,532.88 W042624 Southern Calif Edison Co. 5,624.90 W050924 American Business Bank 6,921.98 277,092.18$ 2,734,231.23$ PAYROLL NO. 07: Direct Deposits 232,648.85$ Payroll Taxes 63,309.68 EFT -- CalPERS 59,185.57 Third Party Checks 83951-83958 29,797.95 384,942.05$ PAYROLL NO. 08: Direct Deposits 237,633.32$ Payroll Taxes 65,342.29 EFT -- CalPERS 59,558.34 Third Party Checks 83951-83954 27,542.92 390,076.87$ PAYROLL NO. 09: Direct Deposits 232,469.17$ Payroll Taxes 63,957.98 EFT -- CalPERS 59,258.94 Third Party Checks 84107-84114 30,285.84 385,971.93$ 1,160,990.85$ 3,895,222.08$ Summary of Disbursements May 16, 2024 ------------------------------------------------------------------------------------------------------------------ TOTAL OF CHECKS & WIRES TOTAL OF PAYROLL ================================================================ MEETING OF MAY 16, 2024 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD ================================================================ DISBURSEMENT TOTAL Page 89 of 170 Check No.Date Vendor Name Amount Description 83959 04/11/2024 MONBRI LLC 5,484.14 DEVELOPER DEPOSIT REFUND J22-13 83960 04/11/2024 KM PROP MGMT GROUP 869.67 CUSTOMER REFUND 83961 04/11/2024 SONIA REYES 464.00 CUSTOMER REFUND 83962 04/11/2024 WHITESTONE PROPERTIES INC 5,788.19 DEVELOPER DEPOSIT REFUND J20-58 83963 04/11/2024 ELLEN BEARDSLEY 37.16 CUSTOMER REFUND 83964 04/11/2024 LARRY WHITE 61.06 CUSTOMER REFUND 83965 04/11/2024 T.E. ROBERTS, INC 3,130.25 CUSTOMER REFUND 83966 04/11/2024 TAIHU QUAN 226.73 CUSTOMER REFUND 83967 04/11/2024 AMY LAIS 95.90 CUSTOMER REFUND 83968 04/11/2024 ACWA/JPIA 160,458.95 MEDICAL & DENTAL PREMIUM MAY 2024 83969 04/11/2024 RS Americas, Inc 500.26 SCADA MATERIAL 83970 04/11/2024 Amazon Capital Services 3,748.62 SUPPLIES FOR IT, PARTS FOR WELL #22 & PLANNERS FOR OPERATIONS 83971 04/11/2024 America's Instant Signs 1,624.09 BOARD OF DIRECTORS LOBBY SIGN 83972 04/11/2024 Annie Alexander 106.22 REIMBURSEMENT - OFFICE & MEETING SUPPLIES 83973 04/11/2024 Aqua-Metric Sales Co. 49,676.84 OPERATIONS WORK MATERIAL 83974 04/11/2024 Aramark 779.12 UNIFORM SERVICE 83975 04/11/2024 AT & T - Calnet3 2,425.28 ATT CALNET 83976 04/11/2024 Base Hill Inc. 10,798.58 JANITORIAL SERVICES & J24-10 VOTING CENTER CLEANING SERVICES 83977 04/11/2024 Bee Busters, Inc 150.00 COLONY ABATEMENTS 83978 04/11/2024 Big Ben Inc. 35,349.65 J23-54 REPAIR OF COPPER CANYON WATERLINE 83979 04/11/2024 Brian Adams 120.00 CERTIFICATE REIMBURSEMENT - DISTRIBUTION 2 & TREATMENT 2 83980 04/11/2024 CalCard US Bank 27,324.23 CREDIT CARD TRANSACTIONS - MARCH 2024 83981 04/11/2024 City Of Placentia 6,820.97 SEWER COLLECTIONS - MARCH 2024 83982 04/11/2024 Coastline Equipment 44,469.09 NEW TRAILER FOR BACKHOE 83983 04/11/2024 Culligan of Santa Ana 3,167.16 EQUIPMENT PE SOFTENER 83984 04/11/2024 Dick's Lock & Safe Inc. 317.71 REKEY LOCKS & KEYS 83985 04/11/2024 Discount Tire Centers (Andonian Enterprises Inc.)1,012.85 TIRES FOR UNIT #214 83986 04/11/2024 Enthalpy Analytical, Inc. 9,989.00 WATER QUALITY TESTING 83987 04/11/2024 FedEx Office 26.43 SHIPPING EXPENSE 83988 04/11/2024 Fleet Services, Inc 746.06 WHEEL CHOCKS FOR MECHANIC SHOP 83989 04/11/2024 Fullerton Paint & Flooring 333.50 MARKING PAINT 83990 04/11/2024 Haaker Equipment Co. 1,596.12 PARTS FOR UNITS #210 & 241 83991 04/11/2024 Hach Company 80.23 WATER QUALITY TEST MATERIALS 83992 04/11/2024 Harrington Industrial 274.51 CL2 SYSTEM PARTS & FILTERS 83993 04/11/2024 Hedrick Fire Protection 1,500.00 VAULT FIRE SUPPRESSION SYSTEM TRAINING & TEST 83994 04/11/2024 Infosend Inc. 5,599.73 BILLING & POSTAGE CUSTOMER BILL 83995 04/11/2024 Jackson's Auto Supply - Napa 352.85 MECHANIC SHOP SUPPLIES & FILTER FOR UNIT #107 83996 04/11/2024 Kenny Graff 105.00 CERTIFICATE REIMBURSEMENT - TREATMENT 1 83997 04/11/2024 Kidman Gagen Law 89,784.18 LEGAL SERVICES - MARCH 2024 83998 04/11/2024 Konica Minolta Business 28.66 COPY CHARGES C300I 83999 04/11/2024 Liebert Cassidy Whitmore 1,909.00 PROFESSIONAL SERVICES - FEBRUARY 2024 84000 04/11/2024 Mc Fadden-Dale Hardware 353.57 WATER OPERATIONS & PRODUCTION HARDWARE SUPPLIES 84001 04/11/2024 Mesa Energy Systems Inc. 1,177.50 BOILER MAINTENANCE - BUILDING 4 84002 04/11/2024 Michael K. Nunley & Associates 3,381.49 J23-50 PROFESSIONAL SERVICES FEBRUARY 2024 84004 04/11/2024 Mood Media 703.47 CUSTOMER MESSAGE/PHONE SERVICE RENEWAL 84005 04/11/2024 Nickey Kard Lock Inc 8,046.04 FUEL 3/16/24-3/31/24 84006 04/11/2024 North American Recycling and Crushing, LLC 1,020.00 DISPOSAL OF OLD ROAD MATERIAL 84007 04/11/2024 OC United 1,750.00 LOVE PLACENTIA SPONSORSHIP 2024 84008 04/11/2024 One Source Distributors, LLC 140.20 SCADA MATERIAL 84009 04/11/2024 Linde Gas & Equipment Inc. 133.27 WELDING SUPPLIES 84010 04/11/2024 P.T.I. Sand & Gravel, Inc. 2,975.90 ROAD MATERIAL 84011 04/11/2024 Resource Computer Solutions 23,070.00 SECURITY CAMERA SERVICES & IT CONSULTATION 3/15/24-4/14/24 84012 04/11/2024 Schorr Metals, Inc. 682.52 METAL FOR MECHANIC SHOP 84013 04/11/2024 Security Solutions 1,418.24 CARD READER SITE SERVICE - WAREHOUSE 84014 04/11/2024 Shred Confidential, Inc. 79.88 MONTHLY SHRED SERVICE 84015 04/11/2024 Source 1 Environmental 10,440.00 SEWER PIPELINE REPAIR MATERIALS 84016 04/11/2024 Rachel Padilla/Petty Cash 135.13 PARKING REIMBURSEMENT & FOOD FOR 5 OT STAFF 84017 04/11/2024 Step Saver Inc 1,373.17 SALT FOR CL2 SYSTEM 84018 04/11/2024 Sunrise Medical Group 25.00 EMPLOYEE PHYSICALS 84019 04/11/2024 Uline 446.74 LIGHTBULB RECYCLE KIT 84020 04/11/2024 Underground Service Alert 426.68 NEW TICKET CHARGES & CA STATE FEE 84021 04/11/2024 United Industries 1,618.87 OPERATIONS PPE 84022 04/11/2024 United Water Works, Inc. 18,445.25 OPERATIONS WORK MATERIAL 84023 04/11/2024 Vision Service Plan 2,646.01 VISION SERVICE PLAN - APRIL 2024 84024 04/11/2024 Westside Building Material 224.02 STREET BROOMS FOR OPERATIONS 84025 04/11/2024 West Coast Batteries Inc 619.46 BATTERIES FOR UNITS #175 & 229 For Checks Dated: 3/28/2024 thru 4/11/2024 Yorba Linda Water District Check Register Page 90 of 170 84026 04/11/2024 Municipal Water District 34,672.00 J23-47 DEDICATED IRRIGATION METER MEASUREMENT PROGRAM 84027 04/11/2024 RKI Engineering 4,290.00 J20-37 TIMBER RIDGE CONTROL SUPPORT W040924 04/09/2024 Southern Calif Edison Co. 148,198.00 ELECTRICITY CHARGES - MARCH 2024 VARIOUS LOCATIONS W041124 04/11/2024 Southern Calif Gas Co. 14,073.42 GAS CHARGES - MARCH 2024 VARIOUS LOCATIONS W041124A 04/11/2024 Switch Ltd 741.00 DATA HOSTING CO-LOCATION 760,638.82 03/28/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 232,648.85 03/28/2024 PAYROLL - PAYROLL TAX PAYMENT 63,309.68 03/28/2024 PAYROLL - CALPERS & TASC 59,185.57 83951 03/28/2024 Allstate 723.77 83952 03/28/2024 Ameritas 1,575.15 83953 03/28/2024 California State Disbursement Unit 665.88 83954 03/28/2024 Colonial Life 88.21 83955 03/28/2024 Lincoln Financial Group 2,241.20 83956 03/28/2024 Midland National 200.00 83957 03/28/2024 Nationwide Retirement Solutions 24,264.73 83958 03/28/2024 Reliance 39.01 384,942.05 Payroll Checks #07 Page 91 of 170 Check No.Date Vendor Name Amount Description 84032 04/25/2024 MARY MCBRIDE 49.29 CUSTOMER REFUND 84033 04/25/2024 HIGHLAND MEADOWS HOA 2,023.80 CUSTOMER REFUND 84034 04/25/2024 JAMES RUSSELL 155.45 CUSTOMER REFUND 84035 04/25/2024 SEAN HILL 161.27 CUSTOMER REFUND 84036 04/25/2024 SERENTO ROSA 401.15 CUSTOMER REFUND 84037 04/25/2024 HABITAT RESTORATION SCIENCES 1,666.73 CUSTOMER REFUND 84038 04/25/2024 TYLER DEPE 186.72 CUSTOMER REFUND 84039 04/25/2024 DOMINIQUE MINOR 1.23 CUSTOMER REFUND 84040 04/25/2024 ACWA/JPIA 160,458.95 MEDICAL & DENTAL PREMIUM MAY 2024 84041 04/25/2024 ACWA/JPIA 50,134.80 WORKERS COMPENSATION 1/1/24-3/31/24 84042 04/25/2024 RS Americas, Inc 70.88 SCADA MATERIAL 84043 04/25/2024 Alternative Hose Inc.98.44 PARTS FOR UNIT #E-271 & WELL #18 84044 04/25/2024 Amazon Capital Services 799.37 SECURITY CAMERA MOUNT, OFFICE SUPPLIES & PARTS FOR SEWER CREW 84045 04/25/2024 Analytical Services, Inc 1,035.00 WATER QUALITY LAB TESTING 84046 04/25/2024 Applied Best Practices 1,058.50 PROFESSIONAL SERVICES - CDAR 84047 04/25/2024 Aramark 363.97 UNIFORM SERVICE 84048 04/25/2024 Air Resources Board 735.00 PORTABLE EQUIPMENT REGISTRATION PROGRAM FEE 84049 04/25/2024 AT & T - Calnet3 46.73 ATT CALNET 84050 04/25/2024 AT & T - Calnet3 2,425.76 ATT CALNET 84051 04/25/2024 A & Y Asphalt Contractors Inc.66,877.00 VAULT ADJUSTMENT FOR MISSION HILLS LANE 84052 04/25/2024 Big Ben Inc.54,729.04 J23-54 REPAIR OF COPPER CANYON WATERLINE 84053 04/25/2024 BrightView Tree Care Services Inc.3,450.00 MONTHLY LANDSCAPE SERVICE 84054 04/25/2024 City Of Anaheim - Anaheim Public Utilities 37,987.59 ELECTRICAL CHARGES MARCH 2024 - VARIOUS LOCATIONS 84055 04/25/2024 City Of Yorba Linda 669,900.00 FY 22/23 ANNUAL PAVEMENT PRESERVATION PROJECT 84056 04/25/2024 Clinical Lab. Of San Bern.2,198.00 WATER QUALITY LAB WORK 84057 04/25/2024 Coast Surveying, Inc.13,045.50 J24-13 & J24-14 PROFESSIONAL SERVICES - MARCH 2024 84058 04/25/2024 Coastline Equipment 7,758.00 SERVICE WORK FOR UNIT #E-271 84059 04/25/2024 Complete Paperless Solutions 5,608.00 CLOUD ARCHIVE SERVICES FOR RECORDS MANAGEMENT 84060 04/25/2024 Communications Lab 5,000.00 PROFESSIONAL SERVICES MARCH 2024 84061 04/25/2024 Culligan of Santa Ana 1,388.50 EQUIPMENT PE SOFTENER 84062 04/25/2024 Dell Financial Services LLC 44,941.61 COMPUTERS & MONITORS FOR IT, OFFICE 365 SUPPORT 84063 04/25/2024 Dopudja & Wells Consulting Inc.5,465.00 PROFESSIONAL SERVICES MARCH 2024 84064 04/25/2024 FedEx Office 46.74 SHIPPING EXPENSE 84065 04/25/2024 Fieldman Rolapp & Associates 118.20 PROFESSIONAL SERVICES MARCH 2024 84066 04/25/2024 Fullerton Paint & Flooring 311.22 MARKING PAINT 84067 04/25/2024 GCI Construction Inc.15,200.00 J20-63S MAIN STREET SEWER REPLACEMENT SERVICE 84068 04/25/2024 Eugene J. Hernandez 472.77 TRAVEL EXPENSE REIMBURSEMENT - WELL CONFERENCE 84069 04/25/2024 GEO Construction 9,388.00 LANDSCAPE SERVICE FOR VARIOUS SITES 84070 04/25/2024 G.M. Sager Construction Co., Inc.32,600.00 PAVING REPAIRS AT VARIOUS LOCATIONS 84071 04/25/2024 Grainger 786.61 PARTS FOR HIGHLAND GAS ENGINE 84072 04/25/2024 Harrington Industrial 62.32 CL2 SYSTEM PARTS 84073 04/25/2024 Health and Human Resource Center, Inc.129.60 EAP - MAY 2024 84074 04/25/2024 Infosend Inc.6,868.75 BILLING & POSTAGE CUSTOMER BILL 84075 04/25/2024 Jackson's Auto Supply - Napa 85.01 PARTS FOR UNITS #107 & 205 84076 04/25/2024 Jacqueline Segura 36.78 MILEAGE REIMBURSEMENT - HR GROUP MEETING 84077 04/25/2024 Lorbel, Inc 672.00 SERVER SITE SERVICE 84078 04/25/2024 LPR-Laser Printer Repair Co 605.56 ON SITE PRINTER MAINTENANCE 84079 04/25/2024 Main Electric Supply Company LLC 7,075.51 J20-37 TIMBER RIDGE SERVICES 84080 04/25/2024 MAP Communications 487.28 AFTER HOURS PHONE SERVICE 84081 04/25/2024 Mc Fadden-Dale Hardware 695.59 PARTS FOR UNITS #249, E-271 & VARIOUS WELLS 84082 04/25/2024 Mc Master-Carr Supply Co.61.71 PARTS FOR CL2 SYSTEM 84083 04/25/2024 MCR Technologies Inc.3,074.92 LEVEL GAGE FOR PRODUCTION 84084 04/25/2024 Michael K. Nunley & Associates 2,067.21 J24-20 PROFESSIONAL SERVICES - MARCH 2024 84085 04/25/2024 NatPay Online Business Solutions 27.54 DOCULIVERY - MARCH 2024 84086 04/25/2024 National Endangered Species Act Reform Coalition 1,000.00 2024 MEMBERSHIP DUES 84087 04/25/2024 Nickey Petroleum Co Inc 10,743.81 DIESEL FUEL & OIL FOR MOTORS 84088 04/25/2024 Office Solutions 2,181.51 OFFICE SUPPLIES & PRINTER TONER 84089 04/25/2024 County of Orange 1,753.20 LANDFILL FEES - SOIL DISPOSAL 84090 04/25/2024 Orkin Pest Control 533.98 PEST CONTROL 84091 04/25/2024 P.T.I. Sand & Gravel, Inc.2,745.51 ROAD MATERIAL 84092 04/25/2024 Resource Computer Solutions 12,138.08 NEW FIREWALL INSTALLATION & SERVICE 84093 04/25/2024 Security Solutions 400.00 CARD READER SITE SERVICE - RICHFIELD 84094 04/25/2024 Selman Chevrolet Company 304.09 PARTS FOR UNIT #244 84095 04/25/2024 Shred Confidential, Inc.91.13 MONTHLY SHRED SERVICE 84096 04/25/2024 T. E. Roberts, Inc 33,003.24 J23-24 CAMINO DE BRYANT WATERLINE SERVICES 84097 04/25/2024 Tetra Tech, Inc.20,827.50 J23-55 PROFESSIONAL SERVICES & WELL #22 SERVICES 84098 04/25/2024 Tony Arambarri 1,446.23 TRAVEL EXPENSE REIMBURSEMENT - ARMA CONFERENCE 84099 04/25/2024 Townsend Public Affairs, Inc.5,000.00 CONSULTING SERVICES - APRIL 2024 For Checks Dated: 4/11/2024 thru 4/25/2024 Yorba Linda Water District Check Register Page 92 of 170 84100 04/25/2024 Towner Filtration 26,804.29 J23-56 PLANT PRE-FILTER REPAIR 84101 04/25/2024 United Industries 1,749.89 OPERATIONS PPE 84102 04/25/2024 United Water Works, Inc.37,046.38 OPERATIONS WORK MATERIAL 84103 04/25/2024 Water Reources Economics 2,560.00 RATE STUDY WORKSHOP 84104 04/25/2024 West Coast Batteries Inc 3,119.82 BATTERIES FOR UNITS #175 & WELL #18 84105 04/25/2024 YO Fire 2,850.35 PIPES FOR VARIOUS REPAIRS 84106 04/25/2024 Zep Manufacturing 1,336.20 HEAVY DUTY TRASH BAGS W041524 04/15/2024 Municipal Water District 101,532.88 WATER DELIVERIES - FEBRUARY 2024 1,490,262.69 04/11/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 237,633.32 04/11/2024 PAYROLL - PAYROLL TAX PAYMENT 65,342.29 04/11/2024 PAYROLL - CALPERS & TASC 59,558.34 83951 04/11/2024 California State Disbursement Unit 665.88 83952 04/11/2024 Colonial Life 88.21 83953 04/11/2024 Lincoln Financial Group 2,354.22 83954 04/11/2024 Nationwide Retirement Solutions 24,434.61 390,076.87 Payroll Checks #08 Page 93 of 170 Check No.Date Vendor Name Amount Description 84118 05/09/2024 COUNTY OF ORANGE/PFRD 149.32 CUSTOMER REFUND 84119 05/09/2024 BRIAN KONZEN 202.41 CUSTOMER REFUND 84120 05/09/2024 NOORI ALAVI 0.10 CUSTOMER REFUND 84121 05/09/2024 CHARLES PRATTY 98.00 CUSTOMER REFUND 84122 05/09/2024 EGLANTINE HOVSEPIAN 90.83 CUSTOMER REFUND 84123 05/09/2024 SHINGYUAN CHANG 137.97 CUSTOMER REFUND 84124 05/09/2024 TRAVIS REDD 89.89 CUSTOMER REFUND 84125 05/09/2024 JHT GROUP INC 66.68 CUSTOMER REFUND 84126 05/09/2024 JIN CHEN 131.01 CUSTOMER REFUND 84127 05/09/2024 MILES & KELLY CONSTRUCTION CO INC 500.00 CUSTOMER REFUND 84128 05/09/2024 JEREMY TISS 90.72 CUSTOMER REFUND 84129 05/09/2024 JASON PADILLA 76.17 CUSTOMER REFUND 84130 05/09/2024 Advanced Thermal Products 1,619.29 CATALYST BLANKET FOR WELL #5 84131 05/09/2024 Airgas Inc 1,038.93 WELDING SUPPLIES 84132 05/09/2024 Amazon Capital Services 1,740.96 IT SUPPLIES & TOOLS FOR MECHANIC SHOP 84133 05/09/2024 Anixter Inc.240.77 TRANSMITTERS FOR IT 84134 05/09/2024 Annie Alexander 41.08 REIMBURSEMENT - OFFICE & MEETING SUPPLIES 84135 05/09/2024 Vestis Group, Inc.615.00 UNIFORM SERVICE 84136 05/09/2024 Base Hill Inc.6,142.58 JANITORIAL SERVICES 84137 05/09/2024 B.L. Wallace Distributor, Inc.3,562.04 METER LIDS 84138 05/09/2024 CalCard US Bank 34,814.18 CREDIT CARD TRANSACTIONS - APRIL 2024 84139 05/09/2024 CIPO Cloud Software Inc 825.00 CLOUD MONTHLY SUBSCRIPTION 84140 05/09/2024 Climatec, LLC 1,070.00 MIRALOMA BOILER SERVICE 84141 05/09/2024 Codekas Tools & Equipment 153.34 MECHANIC SHOP TOOLS & EQUIPMENT 84142 05/09/2024 Dell Financial Services LLC 2,570.98 COMPUTERS & MONITORS FOR IT 84143 05/09/2024 Dean Criske Trucking 3,606.43 ROAD MATERIAL 84144 05/09/2024 E. H. Wachs Company 4,706.86 CONTROLLER FOR UNIT #229 84145 05/09/2024 Elite Equipment Inc 522.61 SAW REPAIR 84146 05/09/2024 Enkay Engineering & Equipment Inc 950.00 TRANSITE PIPE PICKUP (ASBESTOS) 84147 05/09/2024 GCI Construction Inc.55,004.57 J20-63S MAIN STREET SEWER REPLACEMENT SERVICE 84148 05/09/2024 GEO Construction 4,295.00 LANDSCAPE SERVICE FOR ELK MOUNTAIN 84149 05/09/2024 G.M. Sager Construction Co., Inc.16,500.00 PAVING REPAIRS AT VARIOUS LOCATIONS 84150 05/09/2024 Golden Bell Products 8,424.00 MANHOLE INSECTICIDAL COATING 84151 05/09/2024 Grainger 1,801.19 BATTERIES FOR MECHANIC SHOP & PARTS FOR GAS ENGINES 84152 05/09/2024 Haaker Equipment Co.3,326.25 REPAIR FOR UNIT #241 84153 05/09/2024 HQT Homes 2,305.50 DEVELOPER DEPOSIT REFUND J19-42 84154 05/09/2024 Infosend Inc.5,464.12 BILLING & POSTAGE CUSTOMER BILL 84155 05/09/2024 Kimball Midwest 589.03 TOOLS FOR MECHANIC SHOP 84156 05/09/2024 Konica Minolta Business 1,729.12 COPY CHARGES C300I, C550I & COPIER AGREEMENT 84157 05/09/2024 Leighton Consulting, Inc.3,736.96 J21-46 IMPERIAL WATERLINE SERVICE & J20-37 TIMBER RIDGE SERVICE 84158 05/09/2024 Longhorn Fab Shop LLC 1,695.00 EQUIPMENT FOR MECHANIC SHOP 84159 05/09/2024 Mc Fadden-Dale Hardware 320.70 PARTS FOR UNITS #240 & E-271, PARTS FOR WELL #22 84160 05/09/2024 Mc Master-Carr Supply Co.181.67 PARTS FOR CL2 SYSTEM 84161 05/09/2024 Minuteman Press 269.38 CUSTOMER NOTICE ATTACHMENT FOR DOOR TAGS 84162 05/09/2024 Michael K. Nunley & Associates 15,433.26 J21-32 PROFESSIONAL SERVICES MARCH 2024 84163 05/09/2024 Murcal, Inc.4,783.00 LABOR FOR ENGINE SOFTWARE & STATIONARY ENGINE PARTS 84164 05/09/2024 Nickey Kard Lock Inc 9,317.06 FUEL 4/1/24-4/15/24 84165 05/09/2024 Office Solutions 1,464.30 OFFICE SUPPLIES & PRINTER TONER 84166 05/09/2024 Orange County - Tax Collector 509.00 OCSD SHARED COMMUNICATIONS COST 7/23-9/23 & 4/24-6/24 84167 05/09/2024 Orange County Circuit Breakers 2,532.13 CIRCUIT BREAKER FOR SCADA 84168 05/09/2024 Pacific Truck Equipment Inc.30,815.49 SERVICE WORK FOR UNIT #249 84169 05/09/2024 Pacific Hydrotech Corporation 131,517.52 J20-37 TIMBER RIDGE PROFESSIONAL SERVICES 84170 05/09/2024 Pollard Water 423.04 HYDRANT DIFFUSER 84171 05/09/2024 Linde Gas & Equipment Inc.142.45 WELDING SUPPLIES 84172 05/09/2024 Precision Aerial Services, Inc 196.21 PARTS FOR UNIT #E-271 84173 05/09/2024 Pride Construction Engineering Services 26,708.00 J20-37 TIMBER RIDGE TRENCHING WORK 84174 05/09/2024 Psomas & Associates 7,695.00 J24-06 PROFESSIONAL SERVICES MARCH 2024 84175 05/09/2024 P.T.I. Sand & Gravel, Inc.1,232.58 ROAD MATERIAL 84176 05/09/2024 Red Wing Shoes 308.68 SAFETY BOOTS FOR STAFF 84177 05/09/2024 Resource Computer Solutions 25,897.50 IT CONSULTATION 4/15/24-5/14/24 & CAMERA CONFIGURATION 84178 05/09/2024 Safety-Kleen Systems Inc 2,864.18 HAZARDOUS MATERIAL DISPOSAL 84179 05/09/2024 Security Solutions 737.71 CARD READER SITE SERVICE - RICHFIELD 84180 05/09/2024 Selman Chevrolet Company 587.24 PARTS FOR UNIT #249 & 208 84181 05/09/2024 Transene Company Inc.342.37 CHEMICALS FOR CL2 SYSTEM 84182 05/09/2024 Stradling,Yocca,Carlson&Rauth 4,253.50 PROFESSIONAL SERVICES - BOND MATTERS 84183 05/09/2024 Sunrise Medical Group 165.00 EMPLOYEE PHYSICALS 84184 05/09/2024 Terra Wood Fired Kitchen 1,034.00 WATER CASH BOND RELEASE J17-30 84185 05/09/2024 Tetra Tech, Inc.9,305.00 J18-12 & J20-37 PROFESSIONAL SERVICES For Checks Dated: 4/25/2024 thru 5/9/2024 Yorba Linda Water District Check Register Page 94 of 170 84186 05/09/2024 United Industries 435.31 OPERATIONS PPE 84187 05/09/2024 UNUM Life Insurance Co. of America 6,231.42 LIFE,AD&D,STD<D - MAY 2024 84188 05/09/2024 United Water Works, Inc.4,652.51 OPERATIONS WORK MATERIAL 84189 05/09/2024 Vision Service Plan 2,658.45 VISION SERVICE PLAN - MAY 2024 84190 05/09/2024 West Coast Safety Supply Co 1,428.48 SEWER DIVERTER 84191 05/09/2024 West Coast Batteries Inc 349.91 BATTERIES FOR UNIT #189 84192 05/09/2024 Wienhoff Drug Testing 280.00 EMPLOYEE PHYSICALS 84193 05/09/2024 YO Fire 4,952.32 OPERATIONS REPAIR MATERIALS 84194 05/09/2024 Yvette Hanna 34.58 MILEAGE REIMBURSEMENT - METROPOLITAN WATER QUALITY MEETING W042624 04/26/2024 Southern Calif Edison Co.5,624.90 J20-37 TIMBER RIDGE METER SERVICE CHARGE W050924 05/09/2024 American Business Bank 6,921.98 PACIFIC HYDROTECH RETENTION ESCROW HOLDINGS 483,329.72 04/25/2024 PAYROLL - EMPLOYEE DIRECT DEPOSIT 232,469.17 04/25/2024 PAYROLL - PAYROLL TAX PAYMENT 63,957.98 04/25/2024 PAYROLL - CALPERS & TASC 59,258.94 84107 04/25/2024 Allstate 723.77 84108 04/25/2024 Ameritas 1,575.15 84109 04/25/2024 California State Disbursement Unit 665.88 84110 04/25/2024 Colonial Life 88.21 84111 04/25/2024 Lincoln Financial Group 2,354.22 84112 04/25/2024 Midland National 200.00 84113 04/25/2024 Nationwide Retirement Solutions 24,639.60 84114 04/25/2024 Reliance 39.01 385,971.93 Payroll Checks #09 Page 95 of 170 Vendor Name Amount Description deRose Promos 16.31 EMPLOYEE NAMEPLATE Society of American Military Engineers 85.00 LUNCHEON REGISTRATION - TOY, M Southwest Airlines 321.96 FLIGHT - ACWA SPRING CONFERENCE - HERNANDEZ, G Home Depot 32.60 WINDOW TINT TREATMENT Veriato 462.00 ANNUAL MAINTENANCE RENEWAL Home Depot 33.57 ROOF REPAIR MATERIALS Home Depot 226.58 SOD FOR LANDSCAPE REPAIRS Home Depot 41.84 CABLE TIES FOR AIRVACS Garden Gate Florist 129.28 OFFICE EXPENSE Verizon Wireless 4,209.59 VERIZON 12/21-1/20 City Of Placentia 486.00 ENCROACHMENT PERMIT Kennys Donuts 19.45 MEETING SUPPLIES Schorr Metals, Inc.36.32 METAL TUBING FOR UNIT #210 Smart & Final 23.74 SAFETY MEETING SUPPLIES Smart & Final 27.21 BREAKROOM SUPPLIES Sprouts 28.00 MEETING SUPPLIES Kennys Donuts 38.40 SAFETY MEETING SUPPLIES Home Depot 437.73 FACILITIES ELECTRICAL SUPPLIES Home Depot 442.77 BAGS OF CONCRETE FOR REPAIRS Lamp Post Pizza 76.27 FOOD FOR 5 STAFF WORKING OT County of Orange 387.34 J21-36 BNSF INSPECTION FEES Buffer, Inc 24.00 SOCIAL MEDIA ANALYTICS ZOOM 55.99 VIRTUAL MEETING SUBSCRIPTION SMARTSHEET 9.00 MONTHLY SOFTWARE SUBSCRIPTION ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION ONLINE Information Services, Inc.129.71 ONLINE UTILITY EXCHANGE & COLLECTION ONLINE Information Services, Inc.460.07 ONLINE UTILITY EXCHANGE & COLLECTION Wahoo's Fish Tacos 43.05 LUNCH MEETING WITH CALFIRE - 2 ATTEND Schorr Metals, Inc.23.93 ALUMINUM FOR UNIT #107 Ralphs 21.05 MEETING SUPPLIES Home Depot 51.66 CLEANING SUPPLIES FOR WATER OPERATIONS BIG 5 SPORTING GOODS 183.16 EZ UP FOR VALVE CREW Amazon Capital Services 19.51 OFFICE SUPPLIES Apola Gyro Grill 106.12 LUNCH MEETING - 5 ATTEND Apola Gyro Grill 3.77 LUNCH MEETING - 5 ATTEND Lamp Post Pizza 32.00 LUNCH MEETING - 2 ATTEND City Of Placentia 486.00 ENCROACHMENT PERMIT Republic Services #676 689.33 DISPOSAL SERVICE Home Depot 40.22 FACILITY REPAIR MATERIALS Umaya Izakaya 30.75 MEAL - ACWA DC CONFERENCE - TOY, M Los Angeles Int'l Airport 4.38 MEAL - ACWA DC CONFERENCE - TOY, M Bitwarden Inc.180.00 PASSWORD PROGRAM Kennys Donuts 38.40 SAFETY MEETING SUPPLIES Blackgold Golf Club 135.98 NEW HIRE LUNCH - 5 ATTEND UBER 22.79 TRANSPORTATION - ACWA DC CONFERENCE - TOY, M Government Finance Officers 600.00 CPFO RENEWAL FEE Home Depot 12.83 MULCH FOR LANDSCAPE REPAIRS Gholam Hasher 17.60 TRANSPORTATION - ACWA DC CONFERENCE - HERNANDEZ, G Home Depot 136.99 SEWER REPAIR PARTS Lamp Post Pizza 40.87 NEW HIRE LUNCH - 3 ATTEND Joe's Seafood 249.17 MEAL - ACWA DC CONFERENCE - TOY, M & HERNANDEZ, G BPS Supply Group 2,378.68 WATERLINE & BOILER REPAIR MATERIALS Victory Lock Control Inc 25.80 KEYS FOR SANTIAGO RESERVOIR Calif Water Environ Assn (CWEA)428.00 MEMBERSHIP FEE & COLLECTIONS 2 RENEWAL - VARGAS, B Smart & Final 25.46 SAFETY MEETING SUPPLIES Curb DC Taxi 11.90 TRANSPORTATION - ACWA DC CONFERENCE - HERNANDEZ, G APPLE 0.99 OFFICE EXPENSE Curb DC Taxi 13.25 ACWA DC CONFERENCE TRANSPORT - TOY, M & HERNANDEZ, G Willard Intercontinential Hotel 101.64 MEAL - ACWA DC CONFERENCE - TOY, M & HERNANDEZ, G County of Orange 288.59 J23-51 WILLOWBROOK PRE-APPLICATION FEES County of Orange 200.00 J23-51 WILLOWBROOK PRE-APPLICATION FEES Kennys Donuts 38.40 SAFETY MEETING SUPPLIES Spectrum Enterprise 767.00 INTERNET & DISTRICT TV SERVICES 11-Apr-24 Cal Card Credit Card U S Bank Page 96 of 170 Spectrum Enterprise 226.83 INTERNET & DISTRICT TV SERVICES Spectrum Enterprise 243.63 INTERNET & DISTRICT TV SERVICES Spectrum Enterprise 2,190.38 INTERNET & DISTRICT TV SERVICES Georgetown Market 5.78 MEAL - ACWA DC CONFERENCE - HERNANDEZ, G Willard Intercontinential Hotel 878.90 LODGING - ACWA DC CONFERENCE - HERNANDEZ, G Ferguson Enterprise Inc 40.00 BOILER REPAIR PARTS Home Depot 247.62 WATER OPERATIONS HARDWARE SUPPLIES Home Depot 42.54 WATER OPERATIONS TOOLS QuikPark 164.20 PARKING - ACWA DC CONFERENCE - TOY, M Willard Intercontinential Hotel 1,757.80 LODGING - ACWA DC CONFERENCE - TOY, M Willard Intercontinential Hotel 10.12 MEAL - ACWA DC CONFERENCE - TOY, M UBER 23.94 ACWA DC CONFERENCE TRANSPORT - TOY, M & HERNANDEZ, G Dunkin Donuts 6.03 MEAL - ACWA DC CONFERENCE - TOY, M Home Depot 43.07 PIPE CUTTERS FOR PRODUCTION City Of Placentia 486.00 ENCROACHMENT PERMIT BACKGROUNDS ONLINE 524.20 NEW HIRE BACKGROUND CHECKS Jimmy Johns 24.48 FOOD FOR STAFF WORKING VOTE CENTER Sake Sushi and Grill 18.44 FOOD FOR STAFF WORKING VOTE CENTER Chipotle Mexican Grill 11.96 FOOD FOR STAFF WORKING VOTE CENTER Adobe 54.99 SOFTWARE LICENSE Allen's Flower Market 88.18 OFFICE EXPENSE Home Depot 286.88 STORAGE BOX FOR OPERATIONS Minuteman Press 59.26 BUSINESS CARDS FOR STAFF Home Depot 243.39 TOOLS FOR WATER OPERATIONS Amazon Capital Services 8.58 OFFICE SUPPLIES Chipotle Mexican Grill 17.83 FOOD FOR STAFF WORKING VOTE CENTER Home Depot 226.12 BAGS OF CONCRETE FOR REPAIRS Home Depot 622.80 TOOLS FOR UNIT #246 Lands End 571.04 RAIN JACKETS FOR STAFF National Notary Association 950.12 NOTARY RENEWAL & TRAINING PACKET - JOZWIAK, B Amazon Capital Services 130.49 OFFICE SUPPLIES FOR PUBLIC AFFAIRS Home Depot 95.57 BOILER REPAIR PARTS B&H PHOTO VIDEO AUDIO 24.65 CABLE FOR SECURITY CAMERAS Costco 193.56 FACILITIES CLEANING & SAFETY SUPPLIES Calif Water Environ Assn (CWEA)103.00 COLLECTIONS 2 RENEWAL - VARIAN, A ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION Home Depot 64.15 WATER OPERATIONS HARDWARE SUPPLIES Dropbox Inc.119.88 FILE SHARING ANNUAL SUBSCRIPTION Blake's Place 54.81 INTERAGENCY LUNCH MEETING Home Depot 27.99 TUBE CUTTERS FOR HYDRANTS Home Depot 47.78 CUTTING WHEELS FOR OPERATIONS Harbor Freight Tools 275.70 TOOLS FOR HYDRANT CREW Constant Contact 215.65 SOCIAL MEDIA ENGAGEMENT PLATFORM Smart & Final 173.91 EMPLOYEE EVENT SUPPLIES 27,324.23 Page 97 of 170 Row Labels Vendor Name Document Amount Description Gene Hernandez Southwest Airlines 321.96 FLIGHT - ACWA SPRING CONFERENCE - HERNANDEZ, G Georgetown Market 5.78 MEAL - ACWA DC CONFERENCE - HERNANDEZ, G Curb DC Taxi 11.90 TRANSPORTATION - ACWA DC CONFERENCE - HERNANDEZ, G Curb DC Taxi 13.25 ACWA DC CONFERENCE TRANSPORT - TOY, M & HERNANDEZ, G Willard Intercontinential Hotel 878.90 LODGING - ACWA DC CONFERENCE - HERNANDEZ, G Willard Intercontinential Hotel 101.64 MEAL - ACWA DC CONFERENCE - TOY, M & HERNANDEZ, G Gholam Hasher 17.60 TRANSPORTATION - ACWA DC CONFERENCE - HERNANDEZ, G UBER 23.94 ACWA DC CONFERENCE TRANSPORT - TOY, M & HERNANDEZ, G Joe's Seafood 249.17 MEAL - ACWA DC CONFERENCE - TOY, M & HERNANDEZ, G Grand Total 1,624.14 11-Apr-24 Cal Card Credit Card Board of Directors Page 98 of 170 Vendor Name Amount Description Amazon Capital Services 39.12 OFFICE SUPPLIES Amazon Capital Services 113.38 OFFICE SUPPLIES Polly's Pies 56.47 SUPPLIES FOR DISTRICT SPONSORED EVENT US POSTAL SERVICE (USPS)14.19 POSTAGE - CERTIFIED MAIL Home Depot 43.40 RATCHET STRAPS & LUMBER FOR REPAIR Home Depot 75.52 SOD FOR LANDSCAPE REPAIR Home Depot 86.03 SOD FOR LANDSCAPE REPAIR Amazon Capital Services 31.16 OFFICE SUPPLIES Amazon Capital Services 58.25 OFFICE SUPPLIES Sunstate Equipment Co 154.90 PROPANE REFILL Home Depot 46.88 CONCRETE TOOLS deRose Promos 39.15 NAME BADGES FOR STAFF Ralphs 13.46 MEETING SUPPLIES Smart & Final 21.31 SAFETY MEETING SUPPLIES Verizon Wireless 3,944.57 VERIZON 1/21-2/20 Visser's Floral & Greenhouses 62.09 OFFICE EXPENSE Amazon Capital Services 37.62 OFFICE SUPPLIES Amazon Capital Services 14.00 OFFICE SUPPLIES Home Depot 200.49 BOOM LIFT RENTAL FEES Home Depot 250.00 BOOM LIFT RENTAL DEPOSIT Home Depot 54.89 TOOLS FOR FACILITIES Home Depot 161.56 WEED SPRAY FOR WELL SITES The UPS Store 406.28 SHIPPING FOR WELL #22 SAMPLE Kennys Donuts 38.40 SAFETY MEETING SUPPLIES Home Depot 95.80 TOOLS FOR SEWER CREW Home Depot 186.14 SEWER HARDWARE & CLEANING SUPPLIES Handshake 299.00 JOB POSTING - ENGINEERING INTERN Amazon Capital Services 31.67 OFFICE SUPPLIES Office Depot Credit Plan 27.99 CERTIFICATE HOLDERS Sams Club 10.28 SUPPLIES FOR DISTRICT SPONSORED EVENT Home Depot 140.70 HARDWARE FOR CAMINO DE BRYANT Reunion Kitchen & Drink 72.20 LUNCH MEETING - 2 ATTEND Home Depot 37.99 OPERATIONS HARDWARE SUPPLIES Adugna Nigatu 33.00 TRANSPORTATION - WELL CONFERENCE - HERNANDEZ, G Original Joe's 33.38 MEAL - WELL CONFERENCE - HERNANDEZ, G Vista Print 728.61 LOGO FOLDERS FOR TOUR PACKETS SSL Guru 399.00 SECURITY CERTIFICATES BLUEBEAM SOFTWARE INC.1,260.00 ENGINEERING SOFTWARE LICENSES Hilton Hotels 195.66 LODGING - WELL CONFERENCE - HERNANDEZ, G American Cab 30.24 TRANSPORTATION - WELL CONFERENCE - HERNANDEZ, G Amazon Capital Services 90.25 WAGON FOR DISTRICT EVENTS Buffer, Inc 24.00 SOCIAL MEDIA ANALYTICS ACWA-Assn Of Ca Water Agencies 840.00 CONFERENCE REGISTRATION - DAVERT, D Costco 463.34 BREAKROOM SUPPLIES Amazon Capital Services 48.91 OFFICE SUPPLIES Home Depot 51.84 OPERATION HARDWARE SUPPLIES INI Ristorante 79.42 LUNCH MEETING - 2 ATTEND Willard Intercontinental Hotel (10.12) ERRONEOUS HOTEL CHARGE - ACWA DC CONFERENCE Lands End 767.04 RAIN JACKETS & SHIRTS FOR STAFF ZOOM 55.99 VIRTUAL MEETING SUBSCRIPTION Southwest Airlines 369.96 FLIGHT - ACWA SPRING CONFERENCE - DAVERT, D ONLINE Information Services, Inc.422.95 ONLINE UTILITY EXCHANGE & COLLECTION Public Sector HR Association 999.00 2024 CONFERENCE REGISTRATION - LIM, V Home Depot 40.22 BOLTS FOR WELL #5 Home Depot 250.00 BOOM LIFT RENTAL DEPOSIT Home Depot 200.49 BOOM LIFT RENTAL FEES Home Depot 39.84 TOOLS FOR FACILITIES ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION Spectrum Enterprise 697.26 INTERNET & DISTRICT TV SERVICES Spectrum Enterprise 388.11 INTERNET & DISTRICT TV SERVICES Spectrum Enterprise 314.93 INTERNET & DISTRICT TV SERVICES Spectrum Enterprise 2,633.63 INTERNET & DISTRICT TV SERVICES Republic Services #676 689.33 DISPOSAL SERVICE Ikea 4,032.29 J23-57 FURNITURE FOR GM OFFICE Seismic Design Review 595.00 SEISMIC DESIGN WEBINARS - NAKANO, E 9-May-24 Cal Card Credit Card U S Bank Page 99 of 170 Seismic Design Review 221.00 SEISMIC DESIGN WORKBOOKS - NAKANO, E Lands End 76.23 DRESS SHIRT FOR DIRECTOR Calif Water Environ Assn (CWEA)330.00 SPRING WORKSHOP REGISTRATION - 6 ATTEND Home Depot 250.49 LANDSCAPE MATERIALS FOR REPAIR El Farolito 44.99 LUNCH MEETING - 2 ATTEND Home Depot 37.57 BATTERIES Ebay 115.91 SECURITY CAMERA PARTS Ebay 115.91 SECURITY CAMERA PARTS Staples Business Advantage 103.26 OFFICE SUPPLIES Kennys Donuts 38.40 SAFETY MEETING SUPPLIES Home Depot 102.25 LANDSCAPE MATERIALS FOR REPAIR Big Brand Water 133.88 WATER FILTERS - BUILDING 2 Home Depot 50.35 SOD FOR LANDSCAPE REPAIR Recreonics 142.28 EPOXY PAINT FOR PRODUCTION Serv-A-Pure Co.55.09 WELL #22 SAMPLE MATERIALS Bitwarden Inc.180.00 PASSWORD PROGRAM Custom Signs 102.53 SIGNS FOR FACILITIES GATES Home Depot (81.80) GROUND STAKES REFUND Buy Insulation Products.Com 613.56 INSULATION FOR BOILER Urban Plates 188.97 MEAL FOR BUDGET WORKSHOP International Institute of Municipal Clerks 125.00 MEMBERSHIP FEE - JOZWIAK, B Smart & Final 23.81 SAFETY MEETING SUPPLIES Economy Radiator Repair 200.00 RADIATOR REPAIR FOR UNIT #107 Home Depot 1,499.50 LED KITS FOR LIGHT REPAIRS Home Depot 30.11 TOOLS FOR PRODUCTION CAPIO 275.00 MEMBERSHIP FEE - DE LA CRUZ, B CAPIO 675.00 CONFERENCE REGISTRATION - DE LA CRUZ, B Kennys Donuts 84.55 SAFETY MEETING SUPPLIES Blackgold Golf Club 35.17 LUNCH MEETING - 2 ATTEND APPLE 0.99 OFFICE EXPENSE Home Depot 119.57 PAINTING SUPPLIES Calif Special Districts Assn 200.00 WEBINAR REGISTRATION - JOZWIAK, B Orchids Little Secret 134.71 OFFICE EXPENSE Home Depot 597.04 COMPOUND SAW KIT Victory Lock Control Inc 21.50 KEYS FOR FAIRMONT GENERATOR Home Depot 18.67 KEY RINGS & TOWELS FOR PRODUCTION America's Instant Signs 271.02 DIRECTORS LOBBY PHOTO DISPLAY Home Depot 54.35 TOOLS FOR LEAK CREW Zoro 83.62 REPLACEMENT SAW BLADES Schorr Metals, Inc.341.26 RESERVOIR OVERFLOW MATERIAL Lance, Soll & Lunghard LLP 190.00 GAAT UPDATE EVENT REGISTRATION - 2 ATTEND Lance, Soll & Lunghard LLP 95.00 GAAT UPDATE WEBINAR REGISTRATION Adobe 54.99 SOFTWARE LICENSE Target 64.65 J23-57 OFFICE SUPPLIES Walmart 13.99 SUPPLIES FOR WELL #22 SAMPLE County of Orange 328.47 J23-51 WILLOWBROOK REPLACEMENT PERMIT FEES County of Orange 330.79 J23-51 WILLOWBROOK REPLACEMENT PERMIT FEES Home Depot 68.87 CLEANING SUPPLIES FOR CAMINO DE BRYANT The Sherwin-Williams Co.100.21 MARKING PAINT Home Depot 12.51 HARDWARE FOR WELL #22 deRose Promos 32.63 NAME BADGES FOR STAFF Target 130.49 J23-57 OFFICE SUPPLIES ZOOM 15.99 VIRTUAL MEETING SUBSCRIPTION Home Depot 32.28 CAR WASH REPAIR PARTS Calif Water Environ Assn (CWEA)245.00 ELECTRICAL & INSTRUMENTATION CERTIFICATE WORKBOOKS The UPS Store 279.41 SHIPPING FOR WELL #22 SAMPLE Project Management Institute 139.00 MEMBERSHIP FEE - WESTON, R California Newspaper Partnership 49.95 OC REGISTER SUBSCRIPTION FEE WPForms, LLC 79.00 FORM SOFTWARE FOR WEBSITE Baci Di Firenze 184.52 LUNCH MEETING - 4 ATTEND Constant Contact 215.65 SOCIAL MEDIA ENGAGEMENT PLATFORM Home Depot 89.31 PAINTING SUPPLIES KB Design 13.59 EMBROIDERY FOR DISTRICT POLOS Smart & Final 23.89 SAFETY MEETING SUPPLIES California Department of Tax 252.00 2023 USE TAX FILING California Department of Tax 5.80 2023 USE TAX FILING FEE Victory Lock Control Inc 10.00 KEYS FOR UNIT #203 Orange County Water Assn.500.00 EMERGING PROFESSIONALS EVENT SPONSORSHIP 34,814.18 Page 100 of 170 Row Labels Vendor Name Document Amount Description Gene Hernandez Hilton Hotels 195.66 LODGING - WELL CONFERENCE - HERNANDEZ, G American Cab 30.24 TRANSPORTATION - WELL CONFERENCE - HERNANDEZ, G Adugna Nigatu 33.00 TRANSPORTATION - WELL CONFERENCE - HERNANDEZ, G Original Joe's 33.38 MEAL - WELL CONFERENCE - HERNANDEZ, G Grand Total 292.28 9-May-24 Cal Card Credit Card Board of Directors Page 101 of 170 ITEM NO. 9.3. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Sophia Phuong, Accounting Supervisor SUBJECT: Unaudited Financial Statements for Third Quarter of Fiscal Year 2023-24 RECOMMENDATION: That the Board of Directors receive and file the Unaudited Financial Statements for the Third Quarter ended March 31, 2024 of Fiscal Year 2023-24. Summary: Presented are the Unaudited Financial Statements for the Period Ending March 31, 2024 for the District. For the period, ending March 31, 2024, staff is presenting “unaudited” statements in the ACFR format. We have included a Statement of Net Position, a Debt Service Ratio Calculation, 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 $4.59 million. Cumulative Volumetric Water Revenue, as reported through the Period Ending March 31, 2024, reflects an average increase of approximately 15.9% 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 11% 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. Effective for the fiscal year beginning after December 15, 2023, GASB Statement No. 101 - Compensated Absences requires that liabilities for compensated absences be recognized for any accrued leave for which employees may receive cash payments or non-cash settlements when the leave is more likely than not to be used. For this reporting month staff, in coordination with District external auditors, implemented GASB 101. The non-cash impact of implementing GASB 101 resulted in net decrease in the Compensated Absences Liability of the Balance Sheet which results in a net decrease to Salaries and Related Expenses of approximately $1.16M. Page 102 of 170 As of March 31, 2024 staff completed the removal of recorded sewer laterals from Sewer Capital Assets pursuant Section 6 of the updated Sewer Rules and Regulation in July 2023. This required staff to expense the remaining book value for sewer laterals for an amount of approximately $2.1M. This is reflected in the Other Non-operating Expense line item of the Sewer Budget-to-Actual Statement for March 31, 2024 With the issuance of the Refunding Revenue Bonds, Series 2017A and Series 2022A the District covenanted “…to fix, prescribe and collect rates and charges for Water Service which will be at least sufficient to yield during each Fiscal Year, Net Revenues equal to 125% of the Debit Service for such Fiscal Year.” To confirm the covenant is upheld, staff calculates the Debt Service Ratio quarterly and is received and filed by the Board of Directors. Accordingly, the “unaudited” Debt Service Ratio Calculation of the Water Enterprise for the Period Ending March 31, 2024, being reported at 335%. ATTACHMENTS: 1. Unaudited Financial Statements for 3rd Qtr FY23-24 Page 103 of 170 ASSETS March 2024 March 2023 CURRENT ASSETS: Cash and cash equivalents 33,176,983 65,456,521$ Investment 30,056,942 1,183,929 Accounts receivable - water and sewer services 4,149,682 3,893,995 Accrued interest receivable 23,327 16,487 Prepaid expenses & other deposits 774,519 770,950 Inventory 509,764 485,293 TOTAL CURRENT ASSETS 68,691,217 71,807,175 NONCURRENT ASSETS: Righ-To-Use Lease Asset 458,786 195,746 Deferred Pension Plan 5,666,539 2,458,386 Deferred OPEB Plan 883,032 520,402 Capital assets: Non-depreciable 14,237,926 6,049,498 Depreciable, net of accumulated depreciation 195,783,068 202,293,648 TOTAL NONCURRENT ASSETS 217,029,351 211,517,680 TOTAL ASSETS 285,720,568 283,324,855 LIABILITIES CURRENT LIABILITIES: Accounts payable 1,015,189 2,009,986 Accrued expenses 1,519,956 1,531,089 Accrued interest payable 1,289,293 1,579,315 Refunding Revenue Bond(s) - current portion 1,600,000 1,525,000 Compensated absences 217,145 435,940 Net OPEB Obligation - 5,084 Customer and construction deposits 1,067,640 1,783,997 Deferred revenue 18,532 17,977 TOTAL CURRENT LIABILITIES 6,727,755 8,888,388 LONG-TERM LIABILITIES (LESS CURRENT PORTION): Deferred annexation revenue 10,761,466 11,256,512 Compensated absences 651,436 1,307,821 Net Pension Liability 12,476,752 5,595,057 Net OPEB Liability 1,229,036 512,845 Deferred Pension Plan 763,725 5,355,890 Deferred OPEB Plan 339,223 749,701 Deferred Inflow - Gain on Bond 404,814 292,008 Deferred Inflow - Lease & Lease Liability 635,227 306,648 Refunding Revenue Bond(s) 59,200,939 61,118,896 TOTAL LONG TERM LIABILITIES (LESS CURRENT PORTION) 86,462,618 86,495,378 TOTAL LIABILITIES 93,190,373 95,383,766 NET ASSETS:192,530,195$ 187,941,089$ YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF NET ASSETS For the Period Ended March 31, 2024 (With March 31, 2023 Actuals for comparison only) Page 104 of 170 March 2024 March 2023 OPERATING REVENUES: Water sales 31,089,163 27,457,766$ Sewer revenues 2,918,016 2,545,088 Other operating revenues 957,069 1,037,620 TOTAL OPERATING REVENUES 34,964,248 31,040,474 OPERATING EXPENSES Variable water costs 12,808,030 11,586,137 Personnel services 7,988,404 8,529,492 Supplies and services 5,288,523 5,638,044 Depreciation and amortization 6,784,140 6,751,093 TOTAL OPERATING EXPENSES 32,869,097 32,504,766 OPERATING INCOME/(LOSS) 2,095,151 (1,464,292) NONOPERATING REVENUES (EXPENSES): Property taxes 1,533,519 1,468,866 Investment income 1,342,923 593,436 Interest expense (1,660,566) (1,656,076) Other nonoperating revenues 1,075,903 1,144,124 Other nonoperating expenses (2,176,409) (390,195) TOTAL NONOPERATING REVENUES/EXPENSES 115,370 1,160,155 NET INCOME/(LOSS) BEFORE CAPITAL CONTRIBUTIONS, SPECIAL/EXTRAORDINARY ITEM(S) 2,210,521 (304,137) CAPITAL CONTRIBUTIONS 948,660 25,462,086 CHANGES IN NET ASSETS 3,159,181 25,157,949 NET ASSETS - BEGINNING OF YEAR 189,371,014 162,783,140 NET ASSETS - FOR PERIOD END MARCH 31, 2024 192,530,195$ 187,941,089$ YORBA LINDA WATER DISTRICT UNAUDITED COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS March 31, 2024 (With March 31, 2023 Actuals for comparison only) Page 105 of 170 FY24 YTD Debt Prior YTD PY Debt Actual As O f Service Actual as of Service March 2024 Calculation March 2023 Calculation Revenue (Operating): Water Revenue (Residential) 12,336,203$ 12,336,203$ 10,482,239$ 10,482,239$ Water Revenue (Commercial & Fire Det.) 1,448,037 1,448,037 1,230,498 1,230,498 Water Revenue (Landscape/Irrigation) 2,893,563 2,893,563 2,574,455 2,574,455 Water Revenue (Service Charge) 11,972,681 11,972,681 10,950,870 10,950,870 Water Revenue (CFC) 2,438,680 2,438,680 2,219,704 2,219,704 Other Operating Revenue 866,660 866,660 956,562 956,562 Total Operating Revenue: 31,955,824 31,955,824 28,414,328 28,414,328 Revenue (Non-Operating): Interest 1,069,516 1,069,516 474,624 474,624 Property Tax 1,533,521 1,533,521 1,468,866 1,468,866 Other Non-Operating Revenue 1,046,516 1,046,516 1,068,233 1,068,233 Total Non-Operating Revenue: 3,649,553 3,649,553 3,011,723 3,011,723 Total Revenue 35,605,377 35,605,377 31,426,051 31,426,051 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 12,808,030 12,808,030 11,586,137 11,586,137 Salary Related Expenses 7,795,759 7,795,759 7,207,120 7,207,120 Supplies & Services 4,607,097 4,607,097 4,933,724 4,933,724 Depreciation 5,702,881 - 5,612,731 - Total Operating Expenses 30,913,767 25,210,886 29,339,712 23,726,981 Expenses (Non-Operating): Interest on Long Term Debt 1,660,569 - 1,656,076 - Other Expense 18,786 18,786 385,014 385,014 Total Non-Operating Expenses: 1,679,355 18,786 2,041,090 385,014 Total Expenses 32,593,122 25,229,672 31,380,802 24,111,995 Net Position Before Capital Contributions 3,012,255 10,375,705 45,249 7,314,056 Capital Contributions (Non-Cash Transaction - 402,460 - 25,045,950 - GASB 34 Compliant) Total Net Position 3,414,715 10,375,705 25,091,199 7,314,056 DEBT SERVICE RATIO CALCULATION: Net Revenues 10,375,705 7,314,056 Debt Service 3,100,664 2,656,923$ %335% 275% Yorba Linda Water District Unaudited Water Enterprise Debt Service Ratio Calculation For Period Ended March 31, 2024 (With March 31, 2023 for comparison purposes) Page 106 of 170 Summary Financial Report Water & Sewer Funds Annual YTD March YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Mar Actual Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Mar 2023) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $14,368,841 431,621$ 12,336,203$ (2,032,638)$ 621,846$ 10,482,239$ 1,853,964$ 17.69% Water Revenue (Commercial & Fire Det.) 2,016,621 $1,472,133 109,992 1,448,037 (24,096) 99,590 1,230,498 217,539 17.68% Water Revenue (Landscape/Irrigation) 4,769,326 $3,481,608 25,223 2,893,563 (588,045) 120,446 2,574,455 319,108 12.40% Water Revenue (Service Charge) 16,076,351 12,057,263 1,340,875 11,972,681 (84,582) 1,229,459 10,950,870 1,021,811 9.33% Property Taxes - CFC Charges 3,597,389 2,194,407 228,671 2,438,680 244,273 208,677 2,219,704 218,976 9.87% Sewer Charge Revenue 3,582,947 2,687,210 288,841 2,656,362 (30,848) 262,036 2,313,510 342,852 14.82% Locke Ranch Assessments 410,497 250,403 22,400 261,653 11,250 20,623 231,578 30,075 12.99% Other Operating Revenue 1,327,217 995,413 105,501 957,066 (38,347) 69,188 1,037,620 (80,554) -7.76% Total Operating Revenue: 51,463,692 37,507,279 2,553,124 34,964,245 (2,543,034) 2,631,865 31,040,474 3,923,771 12.64% Revenue (Non-Operating): Interest 948,000 711,000 109,715 1,342,921 631,921 50,740 593,437 749,484 126.30% Property Tax 2,402,796 1,465,706 153,874 1,533,521 67,815 149,539 1,468,866 64,655 4.40% Other Non-Operating Revenue 735,458 551,594 340,698 1,075,903 524,310 61,034 1,144,123 (68,220) -5.96% Total Non-Operating Revenue: 4,086,254 2,728,299 604,287 3,952,345 1,224,046 261,313 3,206,426 745,919 23.26% Total Revenue 55,549,946 40,235,578 3,157,411 38,916,590 (1,318,988) 2,893,178 34,246,900 4,669,690 13.64% Expenses (Operating): Variable Water Costs (G.W., Import & Powe 19,891,169 14,520,553 851,738 12,808,030 (1,712,523) 640,495 11,586,137 1,221,893 10.55% Salary Related Expenses 14,376,672 9,953,081 (122,971) 7,988,405 (1,964,676) 1,209,396 8,529,492 (541,087) -6.34% Supplies & Services 10,489,766 7,867,325 661,251 5,288,522 (2,578,803) 584,459 5,638,043 (349,521) -6.20% Total Operating Expenses 44,757,607 32,340,958 1,390,018 26,084,957 (6,256,001) 2,434,350 25,753,672 331,285 1.29% Expenses (Non-Operating): Interest on Long Term Debt 2,604,419 1,953,314 182,523 1,660,569 (292,745) 192,344 1,656,076 4,493 0.27% Other Expense 18,625 13,969 2,151,435 2,176,409 2,162,440 1,926 390,195 1,786,214 457.77% Total Non-Operating Expenses: 2,623,044 1,967,283 2,333,958 3,836,978 1,869,695 194,270 2,046,271 1,790,707 87.51% Total Expenses 47,380,651 34,308,241 3,723,976 29,921,936 (4,386,306) 2,628,620 27,799,943 2,121,992 7.63% Net Position Before Capital Contributions 8,169,295 5,927,337 (566,565) 8,994,654 3,067,318 264,558 6,446,957 2,547,697 39.52% Capital Contributions (Non-Cash - - - 948,660 948,660 (4,350) 25,462,086 (24,513,426) -96.27% Transaction GASB 34 Compliant) Net Position Before Depreciation 8,169,295 5,927,337 (566,565) 9,943,314 4,015,978 260,208 31,909,043 (21,965,729) -68.84% Depreciation & Amortization 9,379,000 7,034,250 715,155 6,784,140 (250,110) 763,042 6,751,093 33,047 0.49% Total Net Position (1,209,705)$ (1,106,913)$ (1,281,720)$ 3,159,174$ 4,266,088$ (502,834)$ 25,157,950$ (21,998,776)$ -87.44% (With March 31, 2023 for comparison purposes) Yorba Linda Water District For Period Ending March 31, 2024 Page 107 of 170 Annual YTD Mar YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Mar Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Mar 2023) PY Actual $ PY Actual % Revenue (Operating): Water Revenue (Residential) 19,683,344$ $14,368,841 $431,621 12,336,203$ (2,032,638)$ 621,846$ 10,482,239$ 1,853,964$ 18% Water Revenue (Commercial & Fire Det.) 2,016,621 $1,472,133 109,992 1,448,037 (24,096) 99,590 1,230,498 217,539 18% Water Revenue (Landscape/Irrigation) 4,769,326 $3,481,608 25,223 2,893,563 (588,045) 120,446 2,574,455 319,108 12% Water Revenue (Service Charge) 16,076,351 12,057,263 1,340,875 11,972,681 (84,582) 1,229,459 10,950,870 1,021,811 9% Water Revenue (CFC) 3,597,389 2,194,407 228,671 2,438,680 244,273 208,677 2,219,704 218,976 10% Other Operating Revenue 1,252,987 939,740 101,313 866,660 (73,080) 67,699 956,562 (89,902) -9% Total Operating Revenue: 47,396,018 34,513,993 2,237,695 31,955,824 (2,558,169) 2,347,717 28,414,328 3,541,496 12% Revenue (Non-Operating): Interest 780,000 585,000 94,190 1,069,516 484,516 39,827 474,624 594,892 125% Property Tax 2,402,796 1,465,706 153,874 1,533,521 67,815 149,539 1,468,866 64,655 4% Other Non-Operating Revenue 718,823 539,117 333,464 1,046,516 507,399 59,755 1,068,233 (21,717) -2% Total Non-Operating Revenue: 3,901,619 2,589,823 581,528 3,649,553 1,059,730 249,121 3,011,723 637,830 21% Total Revenue 51,297,637 37,103,816 2,819,223 35,605,377 (1,498,439) 2,596,838 31,426,051 4,179,326 13% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 19,891,169 14,520,553 851,738 12,808,030 (1,712,523) 640,495 11,586,137 1,221,893 11% Salary Related Expenses 12,155,919 8,415,636 (226,952) 6,686,545 (1,729,091) 1,019,312 7,207,120 (520,575) -7% Supplies & Services: Communications 210,004 157,503 13,078 128,909 (28,594) 14,256 138,033 (9,124) -7% Contractual Services 634,152 475,614 42,123 421,968 (53,646) 48,476 434,266 (12,298) -3% Data Processing 463,532 347,649 41,411 273,089 (74,560) 17,567 230,099 42,990 19% Dues & Memberships 106,833 80,125 7,112 72,517 (7,608) 2,500 67,625 4,892 7% Fees & Permits 444,853 333,640 30,069 345,082 11,442 38,454 370,893 (25,811) -7% Board Election - - - - - 76,675 76,675 (76,675) 0% Insurance 412,250 309,188 34,292 294,059 (15,129) 27,083 230,776 63,283 27% Materials 2,383,837 1,787,878 95,119 774,749 (1,013,129) 96,734 874,247 (99,498) -11% District Activities, Emp Recognition 58,223 43,667 2,491 20,801 (22,866) 297 23,754 (2,953) -12% Maintenance 1,467,855 1,100,891 122,545 726,780 (374,111) 41,720 648,067 78,713 12% Non-Capital Equipment 253,285 189,964 34,326 98,114 (91,850) 17,410 123,598 (25,484) -21% Office Expense 40,418 30,314 1,186 25,291 (5,023) 4,824 27,165 (1,874) -7% Professional Services 1,417,133 1,062,850 144,822 764,259 (298,591) 58,215 868,189 (103,930) -12% Training 62,396 46,797 1,936 16,728 (30,069) 694 22,226 (5,498) -25% Travel & Conferences 86,462 64,847 3,300 33,297 (31,550) 2,378 18,164 15,133 0% Uncollectible Accounts 12,750 9,563 924 7,869 (1,694) (1,755) 14,162 (6,293) -44% Utilities 340,000 255,000 18,685 143,430 (111,570) 14,554 226,863 (83,433) -37% Vehicle Equipment 676,400 507,300 8,510 460,155 (47,145) 45,940 538,922 (78,767) -15% Supplies & Services Sub-Total 9,070,383 6,802,787 601,929 4,607,097 (2,195,690) 506,022 4,933,724 (326,627) -7% Total Operating Expenses 41,117,471 29,738,977 1,226,715 24,101,672 (5,637,305) 2,165,829 23,726,981 374,691 2% Expenses (Non-Operating): - Interest on Long Term Debt 2,604,419 1,953,314 182,523 1,660,569 (292,745) 192,344 1,656,076 4,493 0% Other Expense 12,325 9,244 (216) 18,786 9,542 22 385,014 (366,228) -95% Total Non-Operating Expenses: 2,616,744 1,962,558 182,307 1,679,355 (283,203) 192,366 2,041,090 (361,735) -18% Total Expenses 43,734,215 31,701,535 1,409,022 25,781,027 (5,920,508) 2,358,195 25,768,071 12,956 0% Net Position Before Capital Contributions 7,563,422 5,402,281 1,410,201 9,824,350 4,422,069 238,643 5,657,980 4,166,370 74% Capital Contributions (Non-Cash Transaction - - - - 402,460 402,460 (4,350) 25,045,950 (24,643,490) -98% GASB 34 Compliant) Net Position Before Depreciation 7,563,422 5,402,281 1,410,201 10,226,810 4,824,529 234,293 30,703,930 (20,477,120) -67% Depreciation & Amortization 7,690,000 5,767,500 637,145 5,702,881 (64,619) 637,889 5,612,731 90,150 2% Total Net Position (126,578)$ (365,219)$ 773,056 4,523,929$ 4,889,148$ (403,596)$ 25,091,199$ (20,567,270)$ -82% Yorba Linda Water District Water Fund For Period Ending March 31, 2024 (With March 31, 2023 for comparison purposes) Page 108 of 170 Annual YTD Mar YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Actual Mar Actual (thru vs vs FY24 FY24 FY24 FY24 YTD Budget FY23 Mar 2023) PY Actual $ PY Actual % Revenue (Operating): Sewer Charge Revenue 3,582,947$ 2,687,210$ 288,841$ 2,656,362$ (30,848)$ 262,036$ 2,313,510$ 342,852$ 14.82% Locke Ranch Assessments 410,497 250,403 22,400 261,653 11,250 20,623 231,578 30,075 12.99% Other Operating Revenue 74,230 55,673 4,188 90,408 34,736 1,489 81,058 9,350 11.53% Total Operating Revenue: 4,067,674 2,993,286 315,429 3,008,423 15,137 284,148 2,626,146 382,277 14.56% Revenue (Non-Operating): Interest 168,000 126,000 15,525 273,405 147,405 10,913 118,812 154,593 130.12% Other Non-Operating Revenue 16,635 12,476 7,233 29,383 16,907 1,279 75,891 (46,508) -61.28% Total Non-Operating Revenue: 184,635 138,476 22,758 302,788 164,312 12,192 194,703 108,085 55.51% Total Revenue 4,252,309 3,131,762 338,187 3,311,211 179,449 296,340 2,820,849 490,362 17.38% Expenses (Operating): Salary Related Expenses 2,220,753 1,537,444 103,981 1,301,858 (235,586) 190,084 1,322,372 (20,514) -1.55% Supplies & Services: Communications 30,236 22,677 2,308 18,733 (3,944) 2,516 16,759 1,974 11.78% Contractual Services 87,379 65,534 5,173 53,926 (11,608) 6,551 58,351 (4,425) -7.58% Data Processing 76,418 57,314 7,308 43,781 (13,533) 3,100 39,531 4,250 10.75% Dues & Memberships 18,792 14,094 1,255 12,776 (1,318) 441 11,934 842 7.06% Fees & Permits 54,447 40,835 2,802 33,664 (7,171) 7,112 41,041 (7,377) -17.97% Board Election - - - - - 13,531 13,531 - 0.00% Insurance 72,750 54,563 6,052 52,805 (1,758) 4,779 40,723 12,082 29.67% Materials 84,955 63,716 14,121 78,372 14,656 3,070 58,832 19,540 33.21% District Activities, Emp Recognition 10,272 7,704 440 3,672 (4,032) 52 4,192 (520) -12.40% Maintenance 576,545 432,409 2,190 146,610 (285,799) 18,291 158,704 (12,094) -7.62% Non-Capital Equipment 74,815 56,111 1,586 43,708 (12,403) 1,343 51,977 (8,269) -15.91% Office Expense 7,132 5,349 209 4,455 (894) 773 4,700 (245) -5.21% Professional Services 152,637 114,478 7,281 93,166 (21,312) 11,681 103,198 (10,032) -9.72% Training 13,497 10,123 902 9,117 (1,006) 36 10,093 (976) -9.67% Travel & Conferences 18,258 13,694 582 8,746 (4,948) 420 3,207 5,539 172.72% Uncollectible Accounts 2,250 1,688 236 2,251 564 (486) 3,602 (1,351) -37.51% Utilities 60,000 45,000 3,297 23,451 (21,549) 2,568 19,752 3,699 18.73% Vehicle Equipment 79,000 59,250 3,581 52,192 (7,058) 2,659 64,193 (12,001) -18.70% Supplies & Services Sub-Total 1,419,383 1,064,537 59,323 681,425 (383,112) 78,437 704,320 (9,364) -1.33% Total Operating Expenses 3,640,136 2,601,982 163,304 1,983,283 (618,699) 268,521 2,026,692 (29,878) -1.47% Expenses (Non-Operating): Other Expense 6,300 4,725 2,151,651 2,157,623 2,152,898 1,904 5,181 2,152,442 41544.91% Total Non-Operating Expenses: 6,300 4,725 2,151,651 2,157,623 2,152,898 1,904 5,181 2,152,442 415 Total Expenses 3,646,436 2,606,707 2,314,955 4,140,906 1,534,199 270,425 2,031,873 2,109,033 103.80% Net Position Before Capital Contributions 605,873 525,056 (1,976,768) (829,695) (1,354,751) 25,915 788,976 (1,618,671) -205.16% Capital Contributions (Non-Cash Transaction - - - - 546,200 546,200 - 416,136 130,064 416,136 GASB 34 Compliant) Net Position Before Depreciation 605,873 525,056 (1,976,768) (283,495) (808,551) 25,915 1,205,112 (1,488,607) -123.52% Depreciation & Amortization 1,689,000 1,266,750 78,010 1,081,262 (185,488) 125,153 1,138,362 (57,100) -5.02% Total Net Position (1,083,127)$ (741,694)$ (2,054,778)$ (1,364,757)$ (623,063)$ (99,238)$ 66,750$ (1,431,507)$ 2144.58% Yorba Linda Water District Sewer Fund For Period Ending March 31, 2024 (With March 31, 2023 for comparison purposes) Page 109 of 170 ITEM NO. 9.4. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Cash and Investment Report for the Period Ending March 31, 2024 RECOMMENDATION: That the Board of Directors receive and file the Cash and Investment Report for the period ended March 31, 2024. BACKGROUND: 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 March 31, 2024 is 5.01%. The District's Total Cash and Investment balance as of March 31, 2024 resulted in an overall net increase from that of February 29, 2024 by approximately $279,000. This increase is predominantly due to positive results of cash inflows and outflows for this reporting month. On March 18, 2024 staff opted to enroll in Wells Fargo Stagecoach Sweep Option Program as a means offset monthly banking fees. On a daily basis this program allows funds available in the general checking account over a set minimum balance to be swept into the WFB Allspring 100% Treasury Money Market Fund which yields a return of approximately 4.8% on an annual basis. As of March 29, 2024, $1.5 million was transferred from the District’s Local Agency Investment Fund (LAIF) account into the Wells Fargo Bank general checking account to set the initial opening balance for the sweep process to begin as of April 1, 2024. STRATEGIC PLAN INITIATIVES: G2 4C - Manage cash flow to maximize investment income. ATTACHMENTS: 1. Cash and Investment Reports and Graphs - March 2024 Page 110 of 170 Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 4,034,163$ 4,034,163$ Wells Fargo Bank 4,034,163$ 4,034,163$ 6.34% Total 0.00% Depository Account 550,132$ 550,132 US Bank Depository Account (Lennar - Cielo Vista Dev)2.39% 550,132$ 550,132$ 0.86% 2.39% Money Market Accounts: 1,849,377$ 1,849,377$ US Bank (2017A & 2022A Revenue Bonds) 4.93% 4,607,195 4,607,195 US Bank (Money Market) 5.02% 1,338,839 1,338,839 Public Agency Retirement Svcs. (PARS) 6.13% 7,795,411$ 7,795,411$ 12.25% Total 6.27% California Asset Mgmt. Program Term Investments: 20,000,000$ 20,000,000$ CAMP (Investment Fund) 5.78% 20,000,000$ 20,000,000$ 31.44% 5.78% US Treasury Notes 752,954 755,000 US Treasury Note 3/31/2024 5.32% 790,592 800,000 US Treasury Note 7/31/2024 5.21% 788,672 800,000 US Treasury Note 8/31/2024 5.18% 795,992 800,000 US Treasury Note 9/30/2024 5.10% 795,920 800,000 US Treasury Note 10/31/2024 5.06% 806,112 810,000 US Treasury Note 11/30/2024 5.01% 804,411 810,000 US Treasury Note 12/31/2024 4.97% 808,366 815,000 US Treasury Note 1/31/2025 4.90% 806,711 810,000 US Treasury Note 2/28/2025 4.84% 800,855 810,000 US Treasury Note 3/31/2025 4.78% 767,518 785,000 US Treasury Note 4/30/2025 4.73% 8,718,103$ 8,795,000$ 13.71% Total 5.01% Pooled Investment Accounts: 10,221,767$ 10,221,767$ Local Agency Investment Fund 4.23% 12,291,865 12,291,865 CAMP (Liquidity Fund) 5.63% 22,513,631$ 22,513,631$ 35.39% 4.99% 63,611,440$ 63,688,337$ 100% Total Investments 5.01% 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. 3/31/24 Yorba Linda Water District Cash & Investment Portfolio Report March 31, 2024 ________________________________ Delia Lugo, Finance Manager Page 111 of 170 Checking Account:4,034,163$ 6.34% Money Market Accounts:7,795,411$ 12.25% US Treasury Notes:8,718,103$ 13.71% CAMP Term Investments:20,000,000$ 31.44% Pooled Investment Accounts:22,513,631$ 35.39% Depository Account 550,132$ 0.86% Total 63,611,440$ 100.00% Checking Account: 6.34% Money Market Accounts: 12.25% US Treasury Note 13.71% CAMP Term Investments: 31.44% Pooled Investment Accounts: 35.39% Depository Account 0.86% INVESTMENT BY CATEGORY BALANCES (AS OF 3‐31‐2024) Checking Account: Money Market Accounts: US Treasury Notes: CAMP Term Investments: Pooled Investment Accounts: Depository Account Page 112 of 170 Below is a chart summarizing the yields as well as terms and maturities for the month of March 2024: Average # of Month Portfolio Days to of 2024 Yield Maturity March 5.01% 1 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 3/31/2023 3/31/2024 Monthly - March 50,740$ 109,715$ Year-to-Date 593,436$ 1,342,922$ Budget 2022/2023 2023/2024 Interest Budget, February YTD 80,194$ 746,100$ 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 $63.6 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for current Bond transaction and PARS for the pension/OPEB transactions. The estimated number of Days in Cash, based on the preliminary unaudited statements, are 365 for the Un-Restricted Water Reserve and 873 for the Un-Restricted Sewer Reserve balances, as of March 31, 2024. February 2024 % Alloc March 2024 % Alloc Fund Description Balance 2/29/2024 Balance 3/31/2024 Water Operating Reserve 20,735,780$ 46.00% 20,720,484$ 43.97% Water Emergency Reserve 7,639,776 16.70% 7,640,772 16.22% Water Capital Project Reserve 6,915,405 8.59% 5,639,128 11.97% MWD Contingency Reserve - 0.00% - 0.00% Rate Stabilization Reserve 4,453,672 9.69% 4,458,440 9.46% Un-Restricted Water Reserve Balance 39,744,632$ 38,458,823$ Conservation Reserve 73,801$ 0.16% 73,978$ 0.16% Employee Liability Reserve 322,494 0.71% 322,496 0.68% Restricted Reserve Balance 396,295$ 396,474$ Sewer Operating Reserve 2,693,088$ 8.63% 2,769,933$ 5.88% Sewer Emergency Reserve 2,101,348 4.52% 2,109,313 4.48% Sewer Capital Project Reserve 3,611,283 5.00% 3,386,283 7.19% Un-Restricted Sewer Reserve Balance 8,405,720$ 8,265,529$ Total Reserve Balances 48,546,647$ 100.00% 47,120,826$ 100.00% Water Operating 1,483,609 3,081,097 Sewer Operating 586,774 953,065 2,070,383 4,034,163 Rev. Bond 2017A-Principal & Interest 887 536,150 Rev. Bond 2022A - Acquisition & COI 10,853,444 10,031,330 Depository Account - Lennar - Cielo Vista Dev 550,129 550,132 Public Agency Retirement Svc. -PARS (Restricted)1,311,052 1,338,839 Total Cash and Investments 63,332,542$ 63,611,440$ Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) YLWD Cash & Investment Summary Report Page 113 of 170 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) 01/30/24 Requistion #16 ‐ Reimburse District for eligible construction costs ($23,992) 02/23/24 Requistion #17 ‐ Reimburse District for eligible construction costs ($545,990) 03/27/24 Requistion #18 ‐ Reimburse District for eligible construction costs ($1,585,070) Available Balance of Target Spenddown as of February 29, 2024 $4,997,140 Yorba Linda Water District Financing Authority Revenue Bonds, Series 2022A Activity Summary as of March 31, 2024 $4,997,140 24% $15,620,671 76% Revenue Bonds, Series 2022A Use of Funds to Meet 85% Spenddown Target by July 28, 2025 Available Balance as of Reporting Date Total Spenddown to Date Page 114 of 170 Transaction Date Transaction Description Water Operating Pension Water Operating OPEB Sewer Operating Pension Sewer Operating OPEB Account Total Beginning Balance as of 7/1/23 806,297.48 309,143.73 83,510.06 18,632.96 1,217,584.23 7/31/2023 Management Fees (383.70) (147.11) (39.74) (8.87)1,217,004.81 7/31/2023 Investment Gain/(Loss) 16,775.61 6,431.96 1,737.49 387.67 1,242,337.54 8/31/2023 Management Fees (386.64) (148.24) (40.04) (8.93)1,241,753.69 8/31/2023 Investment Gain/(Loss) (13,805.83) (5,293.32) (1,429.90) (319.04)1,220,905.60 9/30/2023 Management Fees (397.30) (152.33) (41.15) (9.18)1,220,305.64 9/30/2023 Investment Gain/(Loss) (26,757.70) (10,259.21) (2,771.36) (618.35)1,179,899.02 10/31/2023 Management Fees (388.11) (148.81) (40.20) (8.97)1,179,312.93 10/31/2023 Investment Gain/(Loss) (18,548.02) (7,111.52) (1,921.06) (428.63)1,151,303.70 11/30/2023 Management Fees (382.18) (146.53) (39.58) (8.83)1,150,726.58 11/30/2023 Investment Gain/(Loss) 52,177.35 20,005.40 5,404.13 1,205.78 1,229,519.24 12/31/2023 Management Fees (386.73) (148.28) (40.05) (8.94)1,228,935.24 12/31/2023 Investment Gain/(Loss) 38,959.48 14,937.51 4,035.12 900.33 1,287,767.68 1/31/2024 Management Fees (411.25) (157.68) (42.59) (9.50)1,287,146.66 1/31/2024 Investment Gain/(Loss) 310.40 119.01 32.15 7.17 1,287,615.39 2/29/2024 Management Fees (417.80) (160.19) (43.27) (9.65)1,286,984.48 2/29/2024 Investment Gain/(Loss) 15,937.57 6,110.64 1,650.69 368.31 1,311,051.69 3/31/2024 Management Fees (419.77) (160.94) (43.48) (9.70)1,310,417.80 3/31/2024 Investment Gain/(Loss) 18,820.56 7,216.02 1,949.29 434.93 1,338,838.60 1,338,838.60 1,338,838.60 1,338,838.60 1,338,838.60 1,338,838.60 1,338,838.60 Account Balance by Account Type 886,593.42 339,930.11 91,826.51 20,488.56 1,338,838.60$ 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 285,371.58$ 125,825.54 411,197.12 Total Management Fees from Inception (28,406.65)$ (14,808.99) (43,215.64) Balance as of 3/31/2024 978,419.93$ 360,418.67$ 1,338,838.60$ PARS (Public Agency Retirement Services) Funding Summary for March 31, 2024 Page 115 of 170 ITEM NO. 9.5. AGENDA REPORT MEETING DATE: May 16, 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 Third 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 Third Quarter of Fiscal Year 2023-24. ATTACHMENTS: 1. BOD & GM Summary for Q3 2024 2. Travel & Expense Report Q3 2024 3. BOD & GM Summary for YTD 2024 Page 116 of 170 HAWKINS DESROCHES LINDSEY BARBRE HERNANDEZ SUB-TOTAL TOY DAVERT TOTAL 7 8 8 6 7 36 6 22 18 24 21 91 13 30 26 30 28 127 127 $1,950 $4,500 $3,900 $4,500 $4,200 $19,050 $19,050 $4,500 $4,500 $4,500 $4,500 $4,500 $22,500 $22,500 $0 $0 $80 $825 $4,262 $5,167 $5,167 $1,450 $1,450 $1,450 $1,450 $1,450 $7,250 $7,250 $1,950 $4,500 $3,980 $5,325 $8,462 $24,217 $24,217 $5,950 $5,950 $5,950 $5,950 $5,950 $29,750 $29,750 $6,145 $6,145 $2,664 $2,664 $0 $0 $2,664 $2,664 $1,950 $4,500 $3,980 $5,325 $8,462 $24,217 $6,145 $0 $30,362 $5,950 $5,950 $5,950 $5,950 $5,950 $29,750 $2,664 $2,664 $35,079 BOARD/COMMITTEE MEETINGS* OTHER MEETINGS ATTENDED* TOTAL MEETINGS ATTENDED QTD DIRECTOR FEES QTD MEETING FEES BUDGET QTD TRAVEL & CONF. EXPENSES QTD TRAVEL & CONF. BUDGET QTD DIR.FEES AND EXPENSES QTD FEES AND EXPENSES BUDGET QTD GEN MGR EXPENSES QTD GEN MGR TRAVEL/CONF. BUDGET QTD ASSISTANT GM EXPENSES QTD ASSISTANT GM TRAVEL/CONF. BUDGET QTD TOTAL FEES & EXPENSES QTD TOTAL FEES & EXPENSES BUDGET QTD *Meetings attended for which stipend was received YORBA LINDA WATER DISTRICT FY 24 3RD QUARTER REPORT FROM 01-01-24 TO 03-31-24 DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES Page 117 of 170 Role Name GL Date Trip Date Trip Name Trip Location Conference Lodging Meal Event Mileage Transportation Grand Total Director Barbre, Brett 1/22/2024 2/27/24-2/29/24 ACWA DC Conference Washington DC 825.00$ 825.00$ Barbre, Brett Total 825.00$ 825.00$ Hernandez, Gene 2/20/2024 2/27/24-2/29/24 ACWA DC Conference Washington DC 825.00$ 825.00$ 2/20/2024 3/15/24-3/16/24 WELL Conference San Jose, CA 150.00$ 150.00$ 2/20/2024 5/7/24-5/9/24 ACWA Spring Conference Sacramento, CA 840.00$ 840.00$ 2/20/2024 1/17/2024 OCWA Luncheon Irvine, CA 30.00$ 30.00$ 2/20/2024 2/21/2024 OCWA Luncheon Irvine, CA 30.00$ 30.00$ 2/29/2024 2/27/24-2/29/24 ACWA DC Conference Washington DC 65.39$ 888.48$ 953.87$ 3/13/2024 2/27/24-2/29/24 ACWA DC Conference Washington DC 878.90$ 183.93$ 48.09$ 1,110.92$ 3/13/2024 5/7/24-5/9/24 ACWA Spring Conference Sacramento, CA 321.96$ 321.96$ Hernandez, Gene Total 1,815.00$ 878.90$ 183.93$ 60.00$ 65.39$ 1,258.53$ 4,261.75$ Lindsey, Tom 2/20/2024 2/1/2024 Excellence in Placentia Gala Placentia, CA 80.00$ 80.00$ Lindsey, Tom Total 80.00$ 80.00$ Director Total 2,640.00$ 878.90$ 183.93$ 140.00$ 65.39$ 1,258.53$ 5,166.75$ General Manager Toy, Mark 1/22/2024 2/27/24-2/29/24 ACWA DC Conference Washington DC 825.00$ 776.80$ 1,601.80$ 1/22/2024 6/10/24-6/13/24 AWWA Conference Anaheim, CA 950.00$ 950.00$ 1/22/2024 1/17/2024 OCWA Luncheon Irvine, CA 30.00$ 30.00$ 2/20/2024 5/7/24-5/9/24 ACWA Spring Conference Sacramento, CA 840.00$ 321.96$ 1,161.96$ 2/29/2024 2/27/24-2/29/24 ACWA DC Conference Washington DC 91.24$ 37.52$ 128.76$ 3/13/2024 2/27/24-2/29/24 ACWA DC Conference Washington DC 1,757.80$ 223.94$ 205.59$ 2,187.33$ 3/13/2024 3/7/2024 SAME/PEMA Luncheon Cypress, CA 85.00$ 85.00$ Toy, Mark Total 2,615.00$ 1,757.80$ 315.18$ 115.00$ 37.52$ 1,304.35$ 6,144.85$ General Manager Total 2,615.00$ 1,757.80$ 315.18$ 115.00$ 37.52$ 1,304.35$ 6,144.85$ Grand Total 5,255.00$ 2,636.70$ 499.11$ 255.00$ 102.91$ 2,562.88$ 11,311.60$ JANUARY-MARCH 2024 THIRD QUARTER OF FY 24 DIRECTOR'S & GENERAL MANAGER'S RECAP OF TRAVEL/CONFERENCE EXPENSES Page 118 of 170 HAWKINS MILLER DESROCHES LINDSEY BARBRE HERNANDEZ SUB-TOTAL TOY DAVERT TOTAL 19 7 21 21 20 7 95 13 12 47 46 64 21 203 32 19 68 67 84 28 298 298 $4,800 $2,850 $10,200 $10,050 $12,600 $4,200 $44,700 $44,700 $13,500 $9,000 $13,500 $13,500 $13,500 $4,500 $67,500 $67,500 $0 $0 $2,326 $80 $825 $4,262 $7,493 $7,493 $4,350 $2,900 $4,350 $4,350 $4,350 $1,450 $21,750 $21,750 $4,800 $2,850 $12,526 $10,130 $13,425 $8,462 $52,193 $52,193 $17,850 $11,900 $17,850 $17,850 $17,850 $5,950 $89,250 $89,250 $8,473 $8,473 $7,993 $7,993 $815 $815 $7,993 $7,993 $4,800 $2,850 $12,526 $10,130 $13,425 $8,462 $52,193 $8,473 $815 $61,482 BOARD/COMMITTEE MEETINGS* OTHER MEETINGS ATTENDED* TOTAL MEETINGS ATTENDED YTD DIRECTOR FEES YTD MEETING FEES BUDGET YTD TRAVEL & CONF. EXPENSES YTD TRAVEL & CONF. BUDGET YTD DIR.FEES AND EXPENSES YTD FEES AND EXPENSES BUDGET YTD GEN MGR EXPENSES YTD GEN MGR TRAVEL/CONF. BUDGET YTD ASSISTANT GM EXPENSES YTD ASSISTANT GM TRAVEL/CONF. BUDGET YTD TOTAL FEES & EXPENSES YTD TOTAL FEES & EXPENSES BUDGET YTD *Meetings attended for which stipend was received $17,850 $11,900 $17,850 $17,850 $17,850 $5,950 $89,250 $7,993 $7,993 $105,236 YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES FY24 YEAR-TO-DATE REPORT FROM 07-01-2023 TO 03-31-2024 Page 119 of 170 ITEM NO. 9.6. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Rosanne P. Weston, Engineering Manager Yvette Hanna, Senior Engineer Adrian Ayala, Assistant Engineer II SUBJECT: Terms and Conditions for Water and Sewer Service with MBF Foods LLC, d.b.a. Broken Yolk Cafe, 4901 Main Street RECOMMENDATION: That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with MBF Food LLC, d.b.a. Broken Yolk Cafe for 4901 Main Street, J-2024-24. FISCAL IMPACT: Developer Funded Account: 1-2600 Job No.: J-2024-08 BACKGROUND: The applicant, MBF Foods LLC, is seeking to remodel an existing commercial building located at 4901 Main Street within the Historic Town Center in the City of Yorba Linda. The former Main Street Coins & Collectibles store will become the Broken Yolk Cafe breakfast restaurant. An exhibit depicting the project location is attached for consideration. The District has an existing Zone 2, 8-inch waterline fronting the project on Main Street that is adequate in size and of sufficient pressure to serve the project. The applicant is requesting to install a new 2-inch commercial water service and meter, and is conditioned by Orange County Fire Authority to install a private fire suppression system to serve the property. The District will require installation of a double check detector assembly and an isolation valve to separate the private system from the public water system. In addition, an existing 3/4-inch water service line and meter that serves the existing building and is undersized will need to be abandoned by the applicant. The applicant has requested permission to connect to an existing private 6-inch drop sewer lateral that served the previous building in order to connect their on-site plumbing and a 1,500 gallon grease interceptor. The District requires the applicant to reconfigure the existing private drop sewer lateral as it was improperly installed inside of a manhole located on Main Street. The sewer behind the property cannot be utilized as the proposed onsite plumbing is deeper than the existing sewer main. Page 120 of 170 The District has a 10-foot wide dedicated easement on the western portion of the property, and the applicant is proposing to install a 6-feet high CMU wall and swing gate that will abut the easement. The applicant shall ensure that no permanent structures, including wall footings, will encroach on the dedicated easement. The Terms and Conditions for Water and Sewer Service with MBF Food LLC, d.b.a Broken Yolk Cafe, 4901 Main Street, Job No. J-2024-24 are attached for consideration. PRIOR RELEVANT BOARD ACTION: The Board of Directors previously approved Terms and Conditions for Water and Sewer Service with a previous owner, Joe Florentine, for the Brix at Main Street restaurant project at the June 8, 2021, Board Meeting. The project was closed at the request of the previous owner. REVIEWED BY GENERAL COUNSEL: Yes ATTACHMENTS: 1. Vicinity Map 2. Terms and Conditions 3. Project Exhibit Page 121 of 170 VICINITY EXHIBIT - 4901 MAIN STREET Source: Esri, Maxar, Earthstar Geographics, and the GIS User Community Parcel Lot Line Parcel ADU Future Development Street CL Alley Local Private Pseudo Arterial CL Arterial B Arterial C Address May 6, 2024 0 0.01 0.020.01 mi 0 0.01 0.030.01 km 1:820 PROJECT LOCATION Page 122 of 170 Date: YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER AND SEWER SERVICE NAME OF APPLICANT: MBF Food LLC LOCATION OF PROJECT: 4901 MAIN STREET, YORBA LINDA, CA 92886 TRACT NUMBER: N/A JOB NUMBER: J-2024-24 SEWER: N/A LOT(S): 1 The applicant will be required to complete to the satisfaction of the District the following items that have an “X” following the number. 1) ☒ The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) ☒ The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) ☒ The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 4) ☒ Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. 5) ☒ The applicant shall dedicate or obtain all easements deemed necessary b y the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. 6) ☒ The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 7) ☐ The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. Page 123 of 170 Page 2 of 6 NAME OF APPLICANT: MBF Foods LLC LOCATION OF PROJECT: 4901 Main Street, Yorba Linda, CA 92886 8) ☒ The applicant shall furnish the District with a 24 -hour emergency telephone number prior to the District’s approval of the construction plans. 9) ☒ The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 10) ☒ The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 11) ☒ The applicant shall provide, per the District specifications, the "As Built" AutoCAD file (version 2016 or earlier) of the Water and/or Sewer facilities. 12) ☒ The applicant shall complete a Water Service Agreement between the Yorba Linda Water District and the applicant. 13) ☒ The applicant shall pay all of the water fees as required by the Rules and Regulations for Water Service of the District. 14) ☒ The applicant shall pay meter fees associated with the installation of radio read meters for this project. 15) ☒ The applicant shall comply with the Rules and Regulations for Water Service of the Yorba Linda Water District. 16) ☒ The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a D istrict plan check for water improvements. Applicant shall also provide to the District with a copy of conditions of approval issued by the Fire Agency having jurisdiction. 17) ☒ The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan and the Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 18) ☐ The applicant’s engineer shall provide a computer hydraulic analysis report to confirm that the District’s existing water system can accommodate the project. The District’s consultant will verify, using the hydraulic model. If system deficiencies are found, the applicant shall be required to provide mitigation to the satisfaction of the District. Page 124 of 170 Page 3 of 6 NAME OF APPLICANT: MBF Foods LLC LOCATION OF PROJECT: 4901 Main Street, Yorba Linda, CA 92886 19) ☒ The applicant’s future water facilities shall be conveyed to the District as indicated on applicant’s future Water Improvement Plans approved by the District. 20) ☒ The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test , and provide an approved copy to the District. A District representative shall be present to witness the flow test. 21) ☒ The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 22) ☐ The applicant shall install water Sampling Station(s) in conformance with the District’s Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 23) ☒ The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 24) ☐ The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 25) ☒ All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 26) ☒ The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 27) ☐ The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 28) ☒ The applicant shall adjust and raise to grade all valve covers within the limits of this project. 29) ☒ The applicant shall install a pressure regulator in all buildings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 30) ☒ The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. Page 125 of 170 Page 4 of 6 NAME OF APPLICANT: MBF Foods LLC LOCATION OF PROJECT: 4901 Main Street, Yorba Linda, CA 92886 31) ☒ The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 32) ☒ The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly. 33) ☒ The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 34) ☒ The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District’s Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 35) ☒ The applicant shall install all proposed water services at a minimum five -foot horizontal separation from proposed sewer laterals. All proposed water services that cross proposed sewer laterals shall cross above the sewer lateral at a minimum one-foot vertical separation from top of the proposed sewer laterals. 36) ☒ The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 37) ☐ The applicant shall complete a Sewer Service Agreement between the Yorba Linda Water District and the applicant. 38) ☒ The applicant shall comply with the Rules and Regulations for Sewer Service of the Yorba Linda Water District. 39) ☒ The applicant shall pay all of the sewer fees as required by the Rules and Regulations for Sewer Service of the District. 40) ☒ The applicant shall have all sewer facilities designed in accordance with the District's Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 41) ☐ The applicant’s engineer shall provide sewer flow calculations to confirm that the District’s existing sewer system can accommodate the peak wastewater generation from the project. The District’s consultant will verify, using the sewer hydraulic model. If system deficiencies are found, the applicant shall be required to provide mitigation to the satisfaction of the District. Page 126 of 170 Page 5 of 6 NAME OF APPLICANT: MBF Foods LLC LOCATION OF PROJECT: 4901 Main Street, Yorba Linda, CA 92886 42) ☒ The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) ☐ The applicant’s future sewer facilities shall be conveyed to the District as indicated on applicant’s future Water and Sewer Improvement Plans approved by the District. 44) ☒ The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District’s Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 45) ☒ All existing sewer laterals that are not useable in the new plan shall be cut and plugged at the main line. 46) ☒ The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. 47) ☒ The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 48) ☐ The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 49) ☒ The applicant shall abandon one ¾-inch existing water service line and meter. The applicant shall install one 2-inch copper water service line and meter and one 4-inch fire service line with isolation valve per the District’s Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 50) ☒ The applicant shall reconfigure the existing privately owned drop sewer lateral per District’s Standard Specifications and Drawings for Construction Page 127 of 170 Page 6 of 6 NAME OF APPLICANT: MBF Foods LLC LOCATION OF PROJECT: 4901 Main Street, Yorba Linda, CA 92886 of Domestic Water and Sewer Facilities. The applicant shall install one privately owned 1,500-gallon grease interceptor per the sizing calculations as approved by the City of Yorba Linda Building Division. 51) ☐ The applicant shall ensure no permanent structures shall encroach on the existing YLWD dedicated easement. I hereby certify that the foregoing Terms and Conditions were approved at the May 16, 2024 Regular Meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Water and Sewer Service Agreement between Yorba Linda Water District and the applicant is not executed for the project under consideration. Richard Mark Toy General Manager Reviewed by: Rosanne P. Weston Engineering Manager Reviewed by: Yvette Hanna Senior Engineer Page 128 of 170 Page 129 of 170 ITEM NO. 10.1. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Mark Toy, General Manager SUBJECT: Award Professional Services Agreement with Kidman Gagen Law, LLP, for General Counsel Services and Board Guidance Regarding Labor and Employment Legal Services RECOMMENDATION: That the Board of Directors (1) approve the Professional Services Agreement with Kidman Gagen Law, LLP, for General Counsel services and determine whether to continue the $2,000 retainer form of compensation or replace it with a blended rate of $270/hour form of compensation; and (2) provide guidance regarding the District's labor and employment legal services. SUMMARY: On April 11, 2024, the Board of Directors voted in favor of awarding a Professional Services Agreement (“Agreement”) to Kidman Gagen Law, LLP (“KG Law”) for the District’s General Counsel services. Attached is the Agreement for the Board’s review and approval, including whether to (1) continue the $2,000 monthly (plus $500 for each subsequent Board meeting) retainer form of compensation, or (2) replace the retainer with a blended rate of $270/hour form of compensation, for attorney time spent on general matters. In addition, District staff is requesting Board guidance regarding the District’s labor and employment legal services. BACKGROUND: On April 11, 2024, the Board voted in favor of awarding an Agreement to KG Law for the District’s General Counsel services. Attached is the Agreement for the Board’s review and approval. On February 6, 2024, KG Law submitted an Agreement with its proposal in response to the District’s request for proposals for General Counsel services, which has since been reviewed as to form by outside counsel. For the Board to approve the Agreement, the Board must decide whether to (1) continue the $2,000 monthly (plus $500 for each Board meeting) retainer form of compensation, or (2) adopt a blended rate of $270/hour form of compensation, for attorney time spent on general matters. Specifically, the District pays KG Law a monthly retainer of $2,000 to attend the first Board meeting of each month and $500 for each subsequent Board meeting in the same month. The $2,000 and $500 (if any) monthly payments include KG Law time to not only attend Board meetings but time to tend to District general matters, such as the Brown Act and Public Records Act unrelated to a specific billing matter. Page 130 of 170 In other words, KG Law does not bill the District an hourly rate to attend Board meetings or to tend to District general matters. Instead, that time is compensated by the $2,000 retainer and any additional $500 monthly retainer payment(s). As proposed in KG Law’s proposal, KG Law proposes to replace this monthly retainer form of compensation with a blended hourly rate of $270 so all KG Law attorneys, including Mr. Gagen, bill $270 per hour to attend Board meetings and to tend to District general matters (Blended Rate Services) described above and in Exhibit A to KG Law’s attached draft Agreement. The retainer form of compensation is antiquated and less transparent than a blended hourly rate form of compensation. If the Board decides to continue with the retainer form of compensation, then the redline revisions in the attached draft Agreement will be rejected. If the Board decides to adopt a blended rate form of compensation, then the redline revisions in the attached draft Agreement will be accepted. In addition, District staff is requesting Board guidance regarding the District’s labor and employment legal services. PRIOR RELEVANT BOARD ACTION: On April 11, 2024, the Board of Directors voted in favor of awarding a Professional Services Agreement to Kidman Gagen Law, LLP for the District’s General Counsel services. ATTACHMENTS: 1. Draft Agreement Page 131 of 170 1 of 11 12420051.2 YO030-001 LEGAL SERVICES AGREEMENT This LEGAL SERVICES AGREEMENT (“Agreement”) is made and entered on April 25, 2024 (“Effective Date”), by and between the YORBA LINDA WATER DISTRICT, a local public agency, created and operating under authority of Division 12 of the California Water Code (“District”), and KIDMAN GAGEN LAW, LLP (“General Counsel”). The District and General Counsel are collectively referred to herein as “Parties” and individually as “Party”. RECITALS A. The District desires to retain the services of a law firm to provide legal services. B. The District requires a law firm with the requisite knowledge, experience, and expertise to provide the Services for the District, to which the specialized services of General Counsel are appropriate. C. General Counsel represents to District that it is fully qualified and available to perform the Services for and as requested by District, and General Counsel agrees to perform the Services (1) in accordance with the (i) terms and conditions herein and (ii) California Rules of Professional Conduct; and (2) in exchange for compensation described in Section 3 below. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties agree as follows: 1.0 RECITALS. The Recitals above are true and correct. 2.0 SCOPE OF SERVICES. General Counsel, who may sometimes be referred to as District Legal Counsel, including in the Board of Directors’ Policies and Procedures Manual, shall perform the Services described in Section 1 of the “Scope of Services and Fee Schedule” (“Services”) attached hereto and incorporated herein as Exhibit “A”. If any language in Exhibit “A” conflicts with language in this Agreement, this Agreement shall prevail. General Counsel shall perform all Services (a) in accordance with standards customarily provided by an experienced and competent law firm rendering the same or similar Services and (b) in a prompt and continuous fashion. 2.1 Primary Contacts. General Counsel acknowledges that continuous and effective communication between District, General Counsel, and other consultants (as appropriate) is necessary to the successful completion of the Services. General Counsel’s primary contact with District shall be through District’s General Manager. District’s primary contact with General Counsel shall be through the General Counsel’s partner-in-charge, Andrew B. Gagen or their designee. General Counsel shall attend District meetings and undertake, as a part of its professional responsibility under this Agreement, to coordinate its activities with all appropriate District staff, Board of Directors, and consultants. 2.2 General Counsel’s Work Product and Availability of District Resources. In accordance with the California Rules of Professional Conduct, and as requested by the District, Page 132 of 170 2 of 11 12420051.2 YO030-001 General Counsel may be required to provide copies of its work product and communications to others. In order for General Counsel to perform the Services, District shall make available to General Counsel such information, documents, or staff that are relevant to General Counsel’s Services. 2.3 Approval of Services. General Counsel shall provide District with reasonable opportunities to determine whether the Services are being performed in accordance with this Agreement. All Services performed and work product provided may be subject to final review and approval by District. 2.4 Subconsultants. The District may, in its sole discretion, allow General Counsel to contract with subconsultants to provide Services to the District during the term of this Agreement. District may require subconsultants to submit information, such as qualifications, to the District for evaluation and approval or rejection by the District. The District must approve or reject any proposed subconsultants in writing prior to the General Counsel engaging any subconsultant’s services. 3.0 COMPENSATION. As compensation for performance of the Services, District shall pay General Counsel the fees shown for “Retainer Services,” fees shown for “Non-Retainer Services,” and costs and expenses as provided herein. Payment will be made at the rates set forth in General Counsel’s Fee Schedule (“Fee Schedule”), which is set forth in Section 2 of Exhibit “A,” and costs and expenses as provided therein. District shall not be responsible for reimbursing General Counsel for costs or expenses not designated or identified in the Fee Schedule, unless otherwise agreed to in writing or provided in this Agreement. 3.1 Cost of Living Adjustment. On July 1 of each year, starting in 2024, the Fee Schedule (Exhibit A) shall automatically be increased by the amount equal to the cost of living adjustment (COLA) percentages provided to District employees and/or the District Board of Directors, whichever is greater but not to exceed five percent (5%). 3.2 Invoicing. General Counsel shall submit an invoice within ten (10) days after the end of each month during the term of this Agreement describing the Services, including both Retainer Services and Non-Retainer Services, performed for which payment is requested. District shall review and approve all undisputed invoices prior to payment. District shall pay undisputed, approved invoices within thirty (30) days of receipt. General Counsel agrees to submit additional documentation to support the invoice if requested. If District does not approve an invoice, District shall send a notice to General Counsel setting forth the reason(s) the invoice was not approved. General Counsel may re-invoice District to cure the defects identified by District. The revised invoice will be treated as a new submittal. District’s determinations regarding verification of General Counsel’s performance, accrued reimbursable expenses, if any, and percentage of completion shall be binding and conclusive. General Counsel’s time records, invoices, receipts and other documentation supporting the invoices shall be available for review by District upon reasonable notice and shall be retained by General Counsel for (3) years after date of the invoice. 4.0 TERMINATION. This Agreement and the Services may be terminated at any time upon thirty (30) days prior written notice from either Party, with or without cause. In the event of such termination, District shall be responsible for payment of all undisputed, authorized Services Page 133 of 170 3 of 11 12420051.2 YO030-001 performed by General Counsel up through and including the effective date of termination. General Counsel shall also be reimbursed for all costs associated with transitioning any files or other data or documents to a new law firm or returning them to the District. In the event either party terminates this Agreement mid-month, the District will only be responsible for the Retainer Services fee on a pro rata basis up to the date of the termination. 5.0 SAFETY. General Counsel shall conduct and maintain the Services so as to avoid injury or damage to any person or property. General Counsel shall at all times exercise all necessary safety precautions appropriate to the nature of the Services and the conditions under which the Services are to be performed, and be in compliance with all applicable federal, state and local statutory and regulatory requirements including State of California, Department of Industrial Relations (Cal/OSHA) regulations. General Counsel is responsible for the safety of all General Counsel personnel at all times during performance of its Services, including while on District property. 6.0 INDEMNIFICATION. When the law establishes a professional standard of care for the General Counsel’s services, to the fullest extent permitted by law, General Counsel shall hold harmless, defend, indemnify the District, its directors, officers, employees, and authorized volunteers (“Indemnified Party”) against liability, demands, claims, losses, damages, or expenses (“Claims and Damages”) to the extent caused by the negligent acts or omissions, negligence, recklessness, or willful misconduct of General Counsel or its employees or agents in the performance (or actual or alleged non-performance) of the Services, but not for Claims and Damages resulting from the sole negligence or willful acts of the Indemnified Party. This indemnity does not apply to any passive negligence of the Indemnified Party unless caused at least in part by General Counsel. 7.0 INSURANCE REQUIREMENTS. Prior to execution of this Agreement, and at any time thereafter on request, General Counsel shall provide either a copy of the policies and endorsements or executed certificates of insurance in the form attached hereto as Exhibit “B” evidencing the required coverage and limits for each insurance policy. In addition, General Counsel shall promptly provide a new executed certificate of insurance whenever an insurance policy required herein, expires, is renewed or is replaced. 7.1 Acceptability of Insurers. Unless otherwise approved by District, each insurance provider shall be authorized to do business in California and have an A.M. Best rating (or equivalent) of not less than “A:VII.” 7.2 Notice of Cancellation. Each insurance policy shall provide, or be endorsed to provide, that coverage shall not be cancelled except after thirty (30) days prior written notice (ten (10) days for non-payment of premium) to the District. 7.3 Primary and Non-Contributory Coverage. Except for Workers’ Compensation and Employer’s Liability insurance and Professional Liability/Errors and Omissions insurance, each insurance policy maintained by General Counsel shall be primary to any insurance maintained by the District for the District, its affiliated organizations and its and their respective officers, directors, employees, agents, general counsels, attorneys, successors and assigns (collectively, the “Covered Parties”) for all liability arising out of the activities performed by or on behalf of General Page 134 of 170 4 of 11 12420051.2 YO030-001 Counsel. Any insurance, pool coverage, or self-insurance maintained by Covered Parties shall be excess of, and shall not contribute to, General Counsel’s insurance. 7.4 Insurance Coverage. At General Counsel’s sole expense, General Counsel shall provide and maintain at all times during the performance of this Agreement the following insurance: (1) Commercial General Liability (“CGL”) insurance; (2) Automobile Liability insurance; (3) Workers’ Compensation and Employer’s Liability insurance; and (4) Professional Liability/Errors and Omissions (“E&O”) liability insurance. General Counsel waives its right of recovery against the Covered Parties for damages covered by insurance required under this Agreement. Except for Workers’ Compensation coverage, all coverage required herein shall be maintained for the Term of this Agreement. Coverage shall be at least as broad as the following: 7.4.1 Commercial General Liability. Each CGL policy shall have liability coverage limits of at least $1,000,000 per occurrence or claim for bodily injury, personal injury, and property damage, and $2,000,000 policy aggregate total bodily injury, personal injury, and property damage. 7.4.1.1 Additional Insureds. Each CGL policy shall identify Covered Parties as additional insureds, or be endorsed to identify Covered Parties as additional insureds, with respect to liability arising out of Services performed by or on behalf of General Counsel, including materials, parts, or equipment furnished in connection with Services. Coverage for additional insureds shall not be limited to vicarious liability. Defense costs must be paid in addition to limits. 7.4.2 Automobile Liability. Each Automobile Liability policy shall require coverage for “any auto” and shall have limits of at least $1,000,000 for bodily injury and property damage, each accident, and shall use Insurance Services Office (ISO) policy form “CA 00 01,” including owned, non-owned and hired autos, or the equivalent. If General Counsel owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the CGL policy. 7.4.2.1 Additional Insureds. Each Automobile Liability policy shall identify Covered Parties as additional insureds, or be endorsed to identify Covered Parties as additional insureds, with respect to liability arising out of Services performed by or on behalf of General Counsel. 7.4.3 Workers’ Compensation and Employer’s Liability. As required by the State of California, and in accordance with the “Workers’ Compensation and Insurance Act” of the California Labor Code and any amendatory Acts, General Counsel shall provide Workers’ Compensation and Employer’s Liability insurance with limits of at least $1,000,000 per accident for bodily injury or disease. 7.4.3.1 Obligation to Secure Compensation. By General Counsel’s signature hereunder, General Counsel acknowledges its obligation under Section 3700 of the California Labor Code to secure payment of compensation to its employees before commencing the Services under this Agreement. 7.4.3.2 Waiver of Subrogation. General Counsel shall require the insurer issuing the Workers’ Compensation insurance to waive all rights of subrogation against the Page 135 of 170 5 of 11 12420051.2 YO030-001 Covered Parties for losses paid under the policy that arise from Services performed under this Agreement. This waiver applies regardless of whether or not the District received a waiver of subrogation from the insurer. 7.4.4 Professional Liability/Errors and Omissions (“E&O”). Each E&O policy shall have limits of at least $1,000,000 per occurrence or claim and $2,000,000 policy aggregate. 7.5 Broader Coverage. If the General Counsel maintains broader coverage and/or higher limits than the minimums shown above, the District requires and shall be entitled to the broader coverage and/or higher limits maintained by General Counsel. 8.0 INDEPENDENT CONTRACTOR. At all times during the term of this Agreement, General Counsel, its employees, subcontractors and agents shall be deemed to be an independent contractors and not employees of the District. 9.0 TAXES AND BENEFITS. General Counsel shall be responsible for all salaries, payments, insurance and benefits for all of its officers, agents, representatives and employees in performing Services pursuant to this Agreement. General Counsel shall be solely responsible for the payment of all federal, state and local income tax, social security tax, Workers’ Compensation insurance, state disability insurance, and any other taxes or insurance General Counsel, as an independent contractor, is responsible for paying under federal, state or local law. General Counsel and its officers, agents, representatives and employees are not eligible or entitled to receive any District benefits to which District employees are entitled, including but not limited to Workers’ Compensation, medical leave, insurance, indemnity or retirement benefits CalPERS, overtime, vacation or sick pay or any other benefits. 10.0 PERMITS AND LICENSES. At General Counsel’s sole expense, General Counsel shall procure and maintain all permits, licenses, and other government-required certification necessary for the performance of its Services. 11.0 NOTICES. Any notice may be served upon either Party by delivering it in person, or by depositing it in the U.S. Mail with the postage thereon fully prepaid, and addressed to the Party at the address set forth below: District: General Manager Yorba Linda Water District 1717 E Miraloma Ave Placentia, CA 92870 General Counsel: Kidman Gagen Law, LLP 8 Corporate Park Suite 300 Irvine, CA 92606 Any notice given hereunder shall be deemed effective in the case of personal delivery, upon receipt thereof, or, in the case of mailing, at the moment of deposit in the course of transmission with the Page 136 of 170 6 of 11 12420051.2 YO030-001 United States Postal Service. If the Parties agree to accept electronic service, service of any notice may be effectuated by email to an email address provided by the Parties. Either Party may change its address for service with ten (10) days written notice to the other. 12.0 ASSIGNMENT. Neither General Counsel nor District may assign or transfer this Agreement, or any part thereof, without the prior written consent of the other Party, which shall not be unreasonably withheld. 13.0 NO IMPLIED WAIVERS. If any term, condition, or provision of this Agreement is breached by either Party and thereafter waived by the other Party, that waiver will be limited to the specific breach so waived, and will not be deemed either to be a continual waiver or to waive any other breach under this Agreement. 14.0 ATTORNEY’S FEES. In the event of any claim or legal action arising out of this Agreement, or Services, the prevailing Party shall be entitled to reasonable costs and expenses, including without limitation, its attorney’s fees. 15.0 RESOLUTION OF DISPUTES. Pursuant to California Code of Civil Procedure Sections 638 et seq., any dispute arising out of this Agreement shall be resolved by judicial reference, in Orange County, California, by one judicial referee to determine all issues in dispute, whether of fact or of law, and to report a statement of decision. This is a waiver of any right that may exist to a jury trial, but the right to appeal is preserved. 15.1 Selection of Referee. The Parties shall meet and confer to select the referee no later than thirty (30) days after service of the initial complaint on all defendants named in the complaint. The referee must have substantial experience in the type of matter in dispute and without any relationship to either Party, unless the Parties agree otherwise. 15.2 Costs for Judicial Reference. All costs incurred for the judicial reference proceeding, including the cost of the stenographic record, shall be advanced equally by the Parties. However, the referee shall have the power to reallocate such costs among the Parties in the referee’s statement of decision. 16.0 FORCE MAJEURE. Upon written notice by the owing Party, the respective duties and obligations of the Parties hereunder (except District’s obligation to pay General Counsel such sums as may become due from time to time for Services rendered by it) shall be suspended for the time period that performance by the Party is prevented or substantially impeded by workforce strikes, riots, fire, flood, war, terrorism, governmental action, war acts, acts of God, or any other cause similar or dissimilar to the foregoing which are beyond the reasonable control of the Party from whom the affected performance was due. 17.0 TERM OF AGREEMENT. The term of this Agreement is for ten (10) years from the Effective Date unless terminated sooner as provided herein. At its discretion, the District may extend the term of this Agreement by 5 years by written amendment to this Agreement signed by the Parties. 18.0 ENTIRE AGREEMENT AND AMENDMENTS. This Agreement, and the attached Exhibits, represent the entire and integrated agreement between District and General Counsel and Page 137 of 170 7 of 11 12420051.2 YO030-001 supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both District and General Counsel. 19.0 ELECTRONIC SIGNATURES AND COUNTERPARTS. Any Party may execute this Agreement using an “electronic signature,” as that term is defined in California Civil Code Section 1633.2, or a “digital signature,” as defined by California Government Code Section 16.5. An electronic or digital signature will have full legal effect and enforceability. This Agreement may be executed in multiple counterparts, each of which is an original. All signatures taken together will be considered as one and the same agreement. IN WITNESS WHEREOF, the Parties have caused this Agreement to be entered into as of the Effective Date. (signatures on following page) Page 138 of 170 8 of 11 12420051.2 YO030-001 District: YORBA LINDA WATER DISTRICT By: Trudi DesRoches, Board President General Counsel: KIDMAN GAGEN LAW, LLP By: Andrew B. Gagen, Partner Attachments: Exhibit “A”: Scope of Services and Fee Schedule Exhibit “B” General Counsel’s Insurance Certificates Page 139 of 170 9 of 11 12420051.2 YO030-001 EXHIBIT “A” Scope of Services and Fee Schedule This Scope of Services and Fee Schedule relates to the Services provided under the Agreement in furtherance of the attorney-client relationship between the Parties. 1. SERVICES. A. Retainer Blended Rate Services: General Counsel Services to the District under the retainer blended rate of $270/hour will include (“Retainer Blended Rate Services”): (i.) Retainer Blended Rate Services. Preparation for, travel to and from, and in-person attendance at one all District Board of Directors (“Board”) meetings each month. Attendance at a meeting via video conference will qualify as in-person attendance if a quorum of the Board is attending remotely. In addition, General Counsel will provide advice regarding general questions related to the County Water District Law, Brown Act, Public Records Act, and Political Reform Act. In addition, and excluding services for Non-Retainer Accounts described below, General Counsel will review and comment upon staff reports and resolutions prepared by others for Board meetings. (ii.) Extra Meetings. Upon request and authorization by District’s Board of Directors or General Manager, General Counsel will prepare for, travel to and from, and attend additional Board meetings or other meetings. B. Non-Retainer Blended Rate Services: General Counsel, in addition, will provide other legal sServices on behalf of the District outside the scope of Retainer the Blended Rate Services (“Non-Retainer Blended Rate Services”). (i.) Services Outside Scope of Retainer Blended Rate Services. When General Counsel is requested to perform, or otherwise identifies legal services needed by District, which are outside the scope of Retainer Blended Rate Services (specified in Section l.A.), General Counsel shall create a separate invoicing account (“Non-Retainer Blended Rate Account”) to account for fees related to those Non-Retainer Blended Rate Services. General Counsel shall provide a brief description of the nature and scope of the Non-Retainer Blended Rate Services to the District’s General Manager or designee at a time and in a manner selected by the General Manager or designee. Page 140 of 170 10 of 11 12420051.2 YO030-001 2. FEE SCHEDULE. A. Retainer Services Fees. District shall pay General Counsel a total retainer fee of $2,000 per month for Retainer Services described in Section l.A(i). When Retainer Services are requested under Section l.A(ii), District shall pay General Counsel a retainer fee of $500.00 per additional meeting. B.A. Non-Retainer Blended Rate Services Fees. District shall pay General Counsel for Non-Retainer Blended Rate Services described in Section l.B according to the following fee schedule: Partner $294 / hour Senior Associate $270 / hour Associate $251 / hour Paralegal $102 / hour General Counsel will record and bill time in .10 hour increments and document a reasonably detailed description of Non-Retainer Blended Rate Services, including but not limited to, the task performed, the related work product, all persons involved, and the biller's professional capacity (partner, associate, paralegal, etc.) for each Non-Retainer Blended Rate Account. General Counsel will bill for any travel associated with Non-Retainer Blended Rate Services. General Counsel will not bill or charge for mileage or other travel expenses for use of personal vehicles. C.B. Costs and Expenses. General Counsel may receive reimbursement, without markup, of reasonable out-of-pocket expenses incurred on behalf of the District, for out-of-town travel, photocopies, messenger service, investigation and process service fees, litigation and court costs, and similar costs customarily reimbursed by clients to their attorneys. Page 141 of 170 11 of 11 12420051.2 YO030-001 EXHIBIT “B” General Counsel’s Insurance Certificates [attached] Page 142 of 170 ITEM NO. 10.2. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Lori Thompson, Human Resources and Risk Manager SUBJECT: Award or Reject Professional Services Agreement for a Comprehensive Classification and Compensation Study RECOMMENDATION: That the Board of Directors authorize the General Manager to execute a Professional Services Agreement with Gallagher Benefit Services, Inc. for the completion of a comprehensive Classification and Compensation Study for an amount not to exceed $111,400. Alternatively, the Board of Directors may reject the February 8, 2024 Request for Proposal (RFP) for the completion of a comprehensive classification and compensation study, and direct staff to reissue the RFP under an updated timeline. FISCAL IMPACT: Budgeted: Yes (2024-25; pending approval) Total Budget: $112,000 BACKGROUND: On February 8, 2024, after receiving authorization from the Board of Directors, the District issued a Request for Proposal (RFP) for the completion of a comprehensive classification and compensation study. The RFP was posted on the California Special Districts Association RFP Clearinghouse, LinkedIn, and sent directly to four known qualified service providers. At the close of the RFP proposal window on March 14, 2024, two proposals were received. Staff reviewed the proposals, consulted with the RFP Review Group (Director Hawkins and Director Lindsey), and determined that only one proposal was submitted by a qualified service provider (Gallagher Benefit Services, Inc.). The disqualified provider did not meet the minimum qualifications for the scope of work and lacked any experience with water and/or sanitation districts. PRIOR RELEVANT BOARD ACTION: On April 25, 2024, the award of professional services agreement to Gallagher Benefit Services, Inc. for a comprehensive classification and compensation study was before the Board of Directors for approval. After discussion on the item, the Board directed staff to obtain the following additional information for the Board's consideration: 1. Potential availability of additional qualified vendors under an extended timeline: Staff has received no indication from other qualified vendors that an extended timeline would impact the Page 143 of 170 capacity to submit proposals for the requested scope of work. 2. Yorba Linda Water District Employee Association (YLWDEA) input relative to the sole qualified service provider and the possibility of extending the timeline for study completion by 12–18 months: YLWDEA's preference is to complete the classification and compensation study within the current MOU (expiring June 30, 2025). YLWDEA is not opposed to extending the timeline for completion of the study by a few months (completion by May 2025), but they do not want to extend completion of the study beyond the expiration of the current MOU, even if it means using the sole qualified vendor from our recent RFP. REVIEWED BY GENERAL COUNSEL: Yes (Standard Professional Services Agreement) STRATEGIC PLAN INITIATIVES: G5 1C - Recruit and retain a highly skilled and capable workforce. Page 144 of 170 ITEM NO. 10.3. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Doug Davert, Assistant General Manager Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Sponsorship Request for Water Infrastructure Networking Summit RECOMMENDATION: That the Board of Directors consider this request and provide direction to staff. FISCAL IMPACT: Budgeted: Yes Cost Estimate: $5,000 BACKGROUND: The District received the attached request for a $5,000 table sponsorship (10 seats) for the upcoming Water Infrastructure Networking Summit on May 31, 2024 in Costa Mesa. YLWD participated as a table sponsor last year for $4,000. The cost increase is due to a change in venue. Public Affairs included a modest amount of funding in the FY24 budget to pay for miscellaneous sponsorships. This expense would not cause that budget to be exceeded should the request be approved. ATTACHMENTS: 1. WINS Sponsorship Request Page 145 of 170 From: Jose Solorio <JSolorio@mnwd.com> Sent: Thursday, April 18, 2024 10:35 AM To: Mark Toy <mtoy@ylwd.com> Subject: Sponsorship Request for WINS 2024 Mark, Thank you again on behalf of the participating organizations, including Moulton Niguel Water District, for sponsoring our inaugural Water Infrastructure Networking Summit (WINS) in 2023! As you might remember, and as the attached ACWA article recaps, the event was a tremendous success and we received numerous requests from attendees and sponsors to host the event again. We are putting the program together for our WINS event this year on May 31st at the Westin South Coast Plaza in Costa Mesa. We are hoping you can sponsor the event again. Attached is information regarding the event and sponsor benefits. Given the larger and nicer venue, we increased the sponsorship levels. Closest to what you sponsored last year, we hope you can sponsor a table of 10 for you and your guests at the $5,000 Partner level. Please confirm you sponsorship level with us by May 17th and your guest names by May 24th. Also, let us know if you would like an on-site table to share promotional materials and/or space for a display pull-up banner. Numerous dignitaries, including United States Senator Alex Padilla, and officials and staff from all levels of government will be attending the Summit. You and you guests are welcome to join us for both the Summit and the on-site reception that follows. We appreciate your consideration. If you have any questions, feel free to email me at jsolorio@mnwd.com or call me at (949) 403-0528. Sincerely, Jose Jose Solorio | Government Affairs Officer o: 949.831.2500 | d: 949.448.4036 | c: 949.403.0528 e: JSolorio@mnwd.com | visit us: www.mnwd.com Page 146 of 170 Water Infrastructure Networking Summit (WINS) 2024 Friday, May 31, 2024 Westin Hotel, Costa Mesa, California “Partners” Sponsorship Level Information Overview 2024 Water Infrastructure Networking Summit (WINS) for approximately 350 attendees. Benefits • Priority table for 10 guests at event • Agency logo on invitation and registration page • Agency logo on on-site event digital boards and marketing materials • Verbal recognition during program • On-site table to share promotional materials and/or display pull- up banner • Parking validation for guests Sponsorship Amount & Payment • $5,000 • Mouton Niguel Water District will send invoice after event “Supporters” Sponsorship Level Information Overview 2024 Water Infrastructure Networking Summit (WINS) for approximately 350 attendees. Benefits • Table for 5 guests at event • Agency logo on invitation and registration page • Agency logo on on-site event digital boards and marketing materials • Verbal recognition during program • On-site table to share promotional materials and/or display pull- up banner • Parking validation for guests Sponsorship Amount & Payment • $2,500 • Mouton Niguel Water District will send invoice after event Page 147 of 170 16 • ACWANEWS Vol. 51 No. 05 MEMBER NEWS )LUVW(YHU7UL&RXQW\:DWHU,QIUDVWUXFWXUH6XPPLWLQ6RXWKHUQ &DOLIRUQLD)LQGV&RPPRQ*URXQG The Water Infrastructure Networking Summit (WINS) recently brought more than 250 leaders and experts from water and regional agencies in Los Angeles, Orange, and San Diego counties together to address the mounting crisis facing regional water sources and California’s water infrastructure. Metropolitan Water District of Southern California Chair Adán Ortega kicked things off by emphasizing the historic moment that California and the West face. “The Colorado River’s steady decline over the last 20 years has left us with a footprint of climate change that is unmistakable,” Ortega said. “This means that we have assets and infrastructure built for a different time that we need to leverage.” Agencies Must ‘Row in the Same Direction’ Former Los Angeles Mayor and current Infrastructure Advisor for California Antonio Villaraigosa served as the keynote speaker and emphasized that in order to secure more resources, agencies must “row in the same direction” to help maximize the amount of resources we can secure from state and federal sources. “Get everybody in the region that’s impacted by this together and now you’re talking about a formidable coalition,” Villaraigosa said. “That’s why the seeds of what you’re doing here are so important. You’re not going to do it with San Diego by themselves, Orange County by themselves or even LA County by itself. When you all go in together, you can all get more resources.” A panel of 14 regional leaders and water policy experts engaged in a vibrant discussion about water and how to use this crisis moment in California to make progress. Joone Kim-Lopez, General Manager & CEO of Moulton Niguel Water District, moderated the panel and began with a discussion about whether the California Environmental Quality Act (CEQA) should be reformed and the best options for protecting the environment while still moving projects forward. “I think what we’re going to hear from all panelists today is we need to streamline the process. We need to bring projects online sooner,” said Mike Markus, General Manager of Orange County Water District. “If we could have some sort of reform on CEQA, particularly on the legal end, that would be helpful, but we must do what’s right for the environment.” There was widespread agreement for the need to streamline permitting processes and increase communication across agencies and departments to help speed up projects. Toward the end of the nearly two-hour panel conversation, the focus turned to the importance of early engagement in the community to create greater buy-in and avoid costly delays. Panelists also acknowledged the current crisis facing the state’s water resources and agreed that now is not the time to take their foot off the gas. “(Without the recent) atmospheric rivers, we were two or three months from a major crisis in the state of California,” said Sandra Kerl, General Manager for the San Diego County Water Authority. “And we have got to come to terms with the fact that this state’s quality of life and economy is dependent on having sufficient water resources and if it takes 15-20 years to build a project that isn’t going to work.” The tri-county Summit was organized by Founding Sponsors Moulton Niguel Water District, Orange County Water District, San Diego County Water Authority, Los Angeles Department of Water and Power, Metropolitan Water District of Southern California, California Forward, Los Angeles Area Chamber of Commerce and Brownstein and Cordoba Corporation. In addition, there were also 18 co-hosting agencies that helped sponsor the event. For additional information about the Water Infrastructure Networking Summit, visit www.mnwd.com/wins. The event featured a mega-panel of 14 regional leaders and water policy experts from throughout the state who engaged in a vibrant discussion about water and how to use this crisis moment in California to make progress. Photo courtesy of Moulton Niguel Water District Page 148 of 170 ITEM NO. 11.1. AGENDA REPORT MEETING DATE: May 16, 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 CalMutuals Board Tue, Apr 16 2:00 PM Barbre PYLUSD Board Tue, Apr 16 6:00 PM Hernandez Yorba Linda City Council Tue, Apr 16 6:30 PM DesRoches Brea City Council Tue, Apr 16 7:00 PM Lindsey MWDOC Board Wed, Apr 17 8:30 AM Lindsey OCWD Board Wed, Apr 17 5:30 PM DesRoches SCWC Quarterly Luncheon Fri, Apr 19 12:00 PM Hernandez MWDOC/OCWD Joint Planning Committee Wed, Apr 24 8:30 AM DesRoches/Lindsey OC San Board Wed, Apr 24 6:00 PM Hawkins YL Planning Commission Wed, Apr 24 6:30 PM Hawkins (As Needed) Director Hosted Infrastructure Tour Fri, Apr 26 8:00 AM DesRoches ACWA/AWWA Leadership Reception Tue, Apr 30 5:30 PM DesRoches MWDOC Board Wed, May 1 8:30 AM DesRoches/Lindsey OCWD Board Wed, May 1 5:30 PM DesRoches ACWA Spring Conference Tue, May 7 8:00 AM Hernandez PYLUSD Board Tue, May 7 6:00 PM Lindsey Yorba Linda City Council Tue, May 7 6:30 PM Barbre Brea City Council Tue, May 7 7:00 PM DesRoches ACWA Spring Conference Wed, May 8 8:00 AM Hernandez ACC-OC Leadership Summit Wed, May 8 4:30 PM Barbre/DesRoches/Lindsey ACWA Spring Conference Thu, May 9 8:00 AM Hernandez MWDSC Board Tue, May 14 1:00 PM Financial Review Group Tue, May 14 4:30 PM DesRoches/Lindsey MWDOC Board Wed, May 15 8:30 AM Lindsey OCWD Board Wed, May 15 5:30 PM DesRoches YL Planning Commission Wed, May 15 6:30 PM Hawkins (As Needed) YL Mayor's Prayer Breakfast Thu, May 16 6:45 AM Barbre/DesRoches/Hernandez/Lindsey Page 149 of 170 ITEM NO. 11.2. AGENDA REPORT MEETING DATE: May 16, 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 May 7, 2024. GENERAL MANAGER On April 9th, Mr. Sanjay Gaur, Principal Consultant at Water Resources Economics, presented a rate seminar to the Finance Staff, the AGM, and me. The agenda included: a Rate Study overview, Common Mistakes Made in Rate Making, the elements of a Financial Plan, and the factors of Cost of Service and Rate Design. Lessons learned from the seminar were: ▪ Narrative and transparency are very important ▪ Backwards planning is critical to a successful rate study ▪ We need strong financial policies – the financial health of the organization is incredibly important The recommendation from Sanjay was that in order to be successful, a rate study needs to begin at least a year out from implementation in the water district. On April 10th, President DesRoches, VP Lindsey, the AGM, and I attended the Municipal Water District of Orange County’s Annual Elected Officials Forum. Topics included: Current Water Supply Conditions and Metropolitan’s FY2024-25 Budget & Activities. During the forum, Director Erdman asked me to give a brief overview of the Orange County Water District - U.S. Army Corps of Engineers initiative on Forecast Informed Reservoir Operations. On April 15th, Ms. Sarah Hodge from the Association of California Water Agencies (ACWA) conducted her initial coordination with YLWD about executing an ACWA Region 10 Fall event at YLWD on Tuesday, October 15th, 2024. While still in the planning stages, ACWA hopes to have its Region 10 members visit YLWD headquarters in order to receive a tour of our PFAS Treatment Plant. We also discussed the possibility of interested members visiting our Wells Fargo Heli-hydrant. More to follow as planning continues in the coming months. On April 26th, President DesRoches hosted the first Director-led Infrastructure Tour of the year for 7 participants, including Captain De Anne Wigginton, Captain for Orange County Sheriff’s Department, and Chief of Police Services for the City of Yorba Linda. The PA team prepared tour packets with maps, information on each YLWD facility visited, tote bags filled with giveaways, and made valuable Page 150 of 170 connections with members of the community. John DeCriscio led the tour and strongly communicated the value of water, YLWD infrastructure, and the service we provide to our customers. Attendees gave high praise to the entire YLWD staff who work behind the scenes and wanted more information on future tours to share with their neighbors in the community. We look forward to our next Director-led infrastructure tour as we continue to engage and educate all customers in our service area. ADMINISTRATION / IT / PUBLIC AFFAIRS / SAFETY Information Technology The rollout of 33 new computers continues. This is the routine replacement of units based on age (5 years +). Power Distribution Unit (PDU) Replacement Project: A new rack-mounted Intelligent Power Distribution Unit (PDU) has been successfully installed on the critical cabinet housing our server hosts and storage network. This upgrade brings several significant enhancements to our infrastructure management capabilities. ▪ Remote Monitoring: The PDU is equipped with remote monitoring capabilities, a temperature/humidity sensor port, and locking IEC receptacles, allowing our IT team to track critical metrics in real-time. ▪ Power Metering: With built-in power metering functionality, we can now accurately monitor the power usage of individual devices and outlets within the cabinet. This data will help us optimize energy efficiency and identify potential issues before they escalate. ▪ Individual Outlet Control: The PDU enables granular control over each outlet, allowing us to remotely power cycle devices or shut down specific outlets as needed. This level of control enhances our ability to manage and troubleshoot equipment effectively. The importance of this replacement cannot be overstated. The previous PDU was reaching the end of its service life and was at risk of failure, which could have resulted in unplanned downtime and potential data loss. By proactively replacing it, we have mitigated this risk and improved the resilience of our infrastructure. Public Affairs April was a busy month with a number of events. On April 16th, the PA team worked closely with CommLAB and our Operations team to coordinate a very successful Dedication Ceremony in honor of former Board President, Dr. J. Wayne Miller. Over 80 attendees joined the ceremony, which included members of the community, elected officials, and District staff to recognize Dr. Miller's remarkable contributions. Representatives from the Offices of Senator Josh Newman, Senator Kelly Seyarto, Congresswoman Young Kim, and Assembly Member Phillip Chen presented proclamations, along with Supervisor Don Wagner who was in attendance. Dr. Miller sent a thank you letter to the team praising all who were involved in commemorating this special day for him and his family. Lastly, on April 27th, the PA team and a member of the Production team hosted an informational booth at the Love Yorba Linda Kick-Off Rally and gave out free cups of water and tote bags with YLWD swag. Additionally, Director Hernandez and Director Lindsey led a team of community service volunteers to pull weeds at our Valley View Booster Pump facility and stayed hydrated Page 151 of 170 with YLWD bottled water. In addition to participating in community outreach events, the PA team has been strategically planning an infrastructure campaign to promote on our social media channels. To improve workflow efficiency, we plan out an editorial calendar up to 1 month in advance. Attached are a few examples as well as future posts to be scheduled. ENGINEERING ▪ Hidden Hills BPS: The SCE and SoCal Gas work has been completed, and the start-up for the new pump #4 and VFD is scheduled for May 8th. The remaining work includes the security system, the generator, and HVAC start-up and site clean-up. ▪ Timber Ridge BPS: SCE is now working closely with YLWD and the contractor to complete their work. ▪ Green Crest Erosion: The City’s preliminary estimate to stabilize the eroded area is $870,000. YLWD Engineering staff provided comments on the proposed improvements’ potential negative impact on the District’s waterlines adjacent to the eroded area. The City will evaluate YLWD’s concerns. ▪ FF-1 Waterline Replacements in Placentia: Design is underway on 1,650 feet of waterline replacements on McKenzie Drive, Lute Avenue, Roxborough Drive, Cedarlawn Drive, and at Wagner Elementary School in the City of Placentia. The attached outreach flyer was prepared for the Wagner Elementary School portion of the project and will be distributed by the school to families prior to the start of construction. This flyer has already been shared with the CWES Principal, Kyleen Fennema, and PYLUSD Construction Administrator, Max Van de Mortel on May 2nd via email. Yvette Hanna has been in communication with both Kyleen and Max to coordinate with them regarding the upcoming waterline project and to assure them of YLWD’s commitment to closely coordinate the construction schedule and minimize impacts. ▪ Main Street Sewer Replacement: The pipe bursting work extending from Imperial Highway to the Olinda Street parking lot was completed in one day on April 30th. The remaining work, including site restoration, is expected to be completed by early June. ▪ At the Board’s direction, the Engineering Manager compared YLWD’s current development fees with the fees for the cities of Brea, Placentia, and Anaheim. The various fees for each city and/or agency (Golden State Water Company) are included in the attached table. It is difficult to directly compare fees between cities since each city/agency assesses fees differently. FINANCE ▪ Accounting Division is preparing to host the external audit team from Lance, Soll and Lunghard, LLP (“LSL”) for the annual Interim Audit scheduled for May 20-23, 2024. The external audit team will focus their phased annual review on the following areas: cash receipts derived from rates and charges on monthly customer billings for water and sewer services, vetting of payroll processes and the application of pertinent salary and benefit adjustments in response to the Board approved Compensation Study and MOU, adherence to internal controls and in effect fiscal policies for FY 23-24, and accounts payable workflow processes. ▪ The Finance Manager, along with pertinent key staff, met with Stephen Gordon, VP of Business Development for Cogsdale, to discuss the need for an in-depth assessment of workflow processes for each module. An annual maintenance charge is assessed to the District for the existing EPR system Microsoft Dynamics Great Plains (“GP”). A quote for $22,500.00 has been received for each function point within GP to be reviewed through a series of workshops where a Senior Cogsdale Consultant will meet with staff to walk through and discuss the current process, organizational goals, areas of concern, regulatory commitments, and reporting requirements. Through this process it will be determined if staff is Page 152 of 170 utilizing GP to its fullest functionality and capability to effectively and efficiently complete their tasks as well as meet District and division goals and objectives. ▪ Accounting staff has completed and submitted the State Controller’s Report of financial transactions pertaining to Fiscal Year 22-23. Every year, local governments such as cities, counties, and special districts are required to submit reports to the State Controller’s Office containing information on its revenues, expenses and other pertinent financial data. ▪ The collection status of the Capital Finance Charge is as follows. There has been no change for the CFC invoices. 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% $2,992,635 95.9% # 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 ▪ On April 4th, the Yorba Linda Water District Employee Association (YLWDEA) voted to approve membership with the Orange County Employee Association (OCEA). OCEA is the largest public sector union in Orange County, representing approximately 18,000 employees working for the County of Orange, Orange County Superior Court, and various cities and districts throughout Orange County. ▪ Human Resources anticipates hiring a part-time Engineering Intern within the next few weeks, pending completion of interviews. We recently opened a recruitment for a Public Affairs Intern as a result of recent turnover. A new Administrative Assistant is in the hiring process and should begin work on May 20, 2024. OPERATIONS ▪ 4.1 magnitude earthquake on May 1st at 1:49 p.m. All systems were checked and cleared for normal operations. The Board was notified via email. ▪ Main Break on May 2nd at the intersection of Camino de Bryant and Elk Mountain. Call came into Standby maintenance early morning and the leak crew was dispatched by 7:00 a.m. Ductile iron pipe break was repaired and water service was restored to approximately 6 homes before 12:00 p.m. ▪ Fire hydrant valve leaking on Paseo de Las Palomas and Via Rene near East Lake. Called in by OCFA and repaired on May 2nd in the afternoon. Approximately 25 homes were out of service during the repair. Residents were notified in the morning that they would have the water shut off in the afternoon until the repair of the valve was completed. Approximately 3-4 hours. ▪ TCOP Employee Events and Health and Wellness Committee hosted an employee event HR Lunch and Learn on April 30th and an employee event taco lunch for a Cinco de Mayo celebration on May 2nd. ▪ The Board requested a report on the “total cost of groundwater.” Per the MKN Water Master Page 153 of 170 Plan (excerpt attached), the “all-in” cost of groundwater for FY 23-24 breaks down as follows: Groundwater extraction at or below BPP (85% of demand): $624/AF PFAS O&M: $78/AF Conveyance Energy: $118/AF Total: $820.00/AF Groundwater Production for March 2024: Our groundwater production for the month of March is 880.7 AF, which includes 8.04 AF of well water pumped to waste. March groundwater total is 99.1% of supply, which brings FY YTD (BPP) GW to 86.6%. ATTACHMENTS: 1. Public Affairs Activities 2. CommLAB Monthly Report 3. Customer Bill Detail (17 Units) FY 24-25 4. Outreach Flyer for Wagner Elementary Waterline Replacement 5. Comparison of Agency Development Fees 6. Cost of Groundwater and Import Water FY 23-24 Page 154 of 170 GM Report - Public Affairs April 2024 April 16th – Dedication Ceremony for Dr. J. Wayne Miller, Ph.D. Page 155 of 170 GM Report - Public Affairs April 2024 April 26th – President DesRoches’ Infrastructure Tour Group photo taken from OC Sheriff’s helicopter, courtesy of Captain De Anne Wigginton Page 156 of 170 GM Report - Public Affairs April 2024 April 27th – Love Yorba Linda Page 157 of 170 GM Report - Public Affairs April 2024 Current & Scheduled Social Media Posts Promoting YLWD Infrastructure Page 158 of 170 April Activity Report TO:Brianna De La Cruz, Public Affairs Specialist, Yorba Linda Water District FROM:Diego Teran, Sr. Account Manager, Communications LAB DATE: April 23 2024 RE: Current communications projects Below are highlights of current Communications Lab projects for Yorba Linda Water District: Social Media •Agency worked together with client to complete edits for April 30-May 15 Editorial Calendar content. •Client approved Editorial Calendar copy for April 30-May 15 and will provide feedback on corresponding graphics on April 24. Special Events: J. Wayne Miller, Ph.D. Water Treatment Plant Dedication •Agency assisted in many organizational aspects in J. Wayne Miller, Ph.D. Water Treatment Plant Dedication Ceremony, among them: invitation and program design, event signage, props and food; organization of ceremony speakers, request and assistance in proclamations; check-in desk assistance; audiovisual coverage, and edition and dissemination of press release. •Agency printed event programs and hand delivered a special invitation for Representative Young Kim. •Agency provided artwork for invitation of J. Wayne Miller, Ph.D. Water Treatment Plant Dedication Ceremony and sent emails to guests on week of March 18. Additionally, agency resent emails to non- responders on week of April 1. Agency also contacted elected officials to confirm attendance and possibility of bringing a proclamation/certificate for Dr. Miller. •An agency staff member assisted at the check-in table with elected officials as well as client’s staff. •After the dedication ceremony, agency disseminated approved press release to lists provided by client in Constant Contact, and via the EIN Presswire to organizations such as the Associated Press, Google News, and more. •As part of the audiovisual coverage, agency provided pictures of the event on the day of the event, and a few days after, an interview clip of Dr. Miller and President DesRoches. Upcoming Special Events •Client has notified agency of upcoming Open House in Sept. or Oct. The agency will be ready to assist as it did in the 2022 event. Page 159 of 170 Adjustments To Proposed Monthly Customer Billing Statement Staff Recommendation Current Rates Proposed Rate Adj Proposed Rate Adj & Pass-Through Billing on 1" Meter FY 2023-24 FY 2024-25 FY 2024-25 (Water & Sewer) w/ 9% W & 15% S Adj w/ 9% W & 15% S Adj w/ 9% W & 15% S Adj Single Family Residential (17 Units) Plus $0.31 Pass-through Plus $0.34 Pass-through Base Charge 51.26$ 55.88$ 55.88$ Comm Rate 53.38 58.31 58.31 Pass-through 5.27 - 5.78 Total Water Related Charges 109.91$ 114.19$ 119.97$ Cost increase from current rates 4.28 10.06 Percentage increase from current rates 3.89% 9.15% Sewer Maint Charge 11.97$ 13.77$ 13.77$ Total Monthly Bill 121.88$ 127.96$ 133.74$ Cost increase from current rates 6.08 11.86 Percentage increase from current rates 4.99% 9.73% CFC (Capital Finance Charge) 11.25$ 12.27$ 12.27$ Total Monthly Bill w/CFC Allocation 133.13$ 140.23$ 146.01$ Cost increase from current rates 7.10 12.88 Percentage increase from current rates 5.33% 9.67% Page 160 of 170 The Yorba Linda Water District (YLWD) will oversee the replacement of a water pipeline in your school this upcoming winter. This project will enhance fire flow reliability to the Charles Wagner Elementary School (CWES) in alignment with YLWD’s commitment to safeguarding life, property and the environment. The existing 6-inch pipeline and hydrant located within a 50-foot easement in the school were sized adequately to convey fire flows when the facility was originally constructed (1960s). Since that time, several new structures have been added. Most recently, YLWD was notified of plans to add more classrooms, a new fire hydrant, and piping changes. YLWD will be replacing approximately 550-feet of existing pipeline with a larger diameter pipe to support school improvements. Waterline to be Replaced at Charles Wagner Elementary School May 2024 How is a pipe installed? When will we work? YLWD will minimize inconveniences to school and nearby residences and keep a safe and secure jobsite. Installing a pipeline involves digging a new trench adjacent to the existing pipeline where the new pipe will be placed. Once the new pipeline is installed it will be connected to the existing services. When the new pipe is active, the original (old) pipe will be abandoned and roadway surface within the trench area restored to its original condition. The total project construction for the pipeline may take up to eight weeks starting in December 2024. Working hours will be coordinated with CWES administration and will be communicated to all. YLWD staff will closely coordinate construction activities and schedules with the CWES and PYLUSD. Every effort will be made to minimize disruptions during the school year. Impacts to school access during critical times such as drop-off and pickup will be minimized to the maximum extent practicable. Background About the Site For more information, please contact: Yvette Hanna, Project Manager (714) 701-3000; yhanna@ylwd.com Page 161 of 170 Development Fees – Comparison of fees for YLWD and cities of Brea, Placentia and Anaheim – May 2024 Water Development Fees FY23-24 YLWD (YLWD provides water service to most of Yorba Linda and parts of Placentia (2,537), Brea (67) and Anaheim (330)) Brea (City of Brea Fees)Placentia (Golden State Water Company Fees) Anaheim (City of Anaheim Fees) Water Capacity Fees 1 Inch Meter & Below - $12,311 1 ½ Inch Meter - $24,622 2 Inch Meter - $39,395 3 Inch Meter - $86,177 4 Inch Meter - $155,119 6 Inch Meter - $320,087 Reduced water capacity fees for developers that construct the water main/ facilities that serve the development. Single Service Fee $1,960 New Meter Connection Fee 1 Inch - $870 1 ½ Inches $1,410 2 Inches - $1,800 > 2 Inches – Actual Cost Within Traffic Area – Actual Cost Water Impact Fees (For New Development Based on Zone - Elevation – increased by CCI annually 1 Inch Meter - $608 to $126,315 1 ½ Inch Meter – 1 Inch Meter Fee x 2 2 Inch Meter - 1 Inch Meter Fee x 3.2 3 Inch Meter - 1 Inch Meter Fee x 6.4 4 Inch Meter - 1 Inch Meter Fee x 10 6 Inch Meter - 1 Inch Meter Fee x 20 Water Connection Fees (Per Dwelling Unit Served by Meter) 1 Inch Meter - $3,568 2 Inch Meter - $11,980 >2 Inches - TBD Add $1,350 for each additional water user (residential, commercial or industrial) served by one meter. Fire Service Connection Fees 4 Inch Connection - $4,563 6 Inch Connection - $6,388 Plan Check Fees (for tract housing, private fire protection, fire service, fire hydrant, 2-inches or larger meter project) $2,500 initial deposit New Meter Connection Fee GSWC installs ONE service connection per property, meter and meter box at no charge Design and Construction of Water Facilities (Actual Cost) Developer pays for all Actual Costs including estimated federal and state income tax liabilities incurred by GSWC for the following options: •GSWC prepares preliminary cost Plan Check Fees $695 deposit (simple plan) or TBD based on Actual Costs All costs are based on Actual (TBD) For Small Domestic Service with a 2-inch meter and Smaller •Anaheim to furnish and install the service connection, meter and meter box and Developer to pay Anaheim for actual costs. •Developer to furnish and install and pay Anaheim for actual costs for plan check, inspection and valving. •Developer to install mains and pay Anaheim for actual costs to cover plan check, inspection and valving. Page 162 of 170 Water Development Fees FY23-24 YLWD (YLWD provides water service to most of Yorba Linda and parts of Placentia (2,537), Brea (67) and Anaheim (330)) Brea (City of Brea Fees)Placentia (Golden State Water Company Fees) Anaheim (City of Anaheim Fees) Fees increase based on CCI (ENR Construction Cost Index). 8 Inch Connection - $8,305 10 Inch Connection - $11,959 12 Inch Connection - $11,959 Reduced connection fees may be authorized for developers that construct their own distribution lines and meters. Building Permit Fees and Hourly Rates for plan review and inspection may apply. Fees increased based on CCI. estimate for extending waterline •GSWC may prepare detailed design plans, specifications, and construct waterline •GSWC may prepare detailed design plans and Developer constructs waterline •GSWC to provide inspection and supervision on all projects For all other developments (subdivisions, developer installed mains, > 2-inch meter) Developer is to furnish and install the service connection, meter box and meter. Additional fees apply for installations on private property to cover the cost of processing a public utility easement. The Developer will be responsible preparing easement documents and for all costs. Page 163 of 170 Sewer Development Fees FY23-24 YLWD (YLWD provides sewer service to Yorba Linda and parts of Placentia (1,911) and Anaheim (18)) Brea (City of Brea Fees)Placentia (City of Placentia Fees) Anaheim (City of Anaheim Fees) Sewer Capacity Fees Single Family- $794 Master Metered - 0.82 x Number of Units x $794 Commercial - Equivalent Dwelling Unit x Total SF/1,000SF x $794 Frontage Charge Single Family - $5,763 Master Metered – Frontage (FT)/75 FT x $5,763 Commercial – Frontage (FT)/75 FT x $5,763 Fees increase based on CCI. Sewer Impact Fees (New Fee Effective 7/1/2024) $383 per connection (increases to $766 on 7/1/2025) Sewer Connection Fees Per Fixture Cost (Bathtub, Washer, Shower, etc.) - $14.50 to $57 each fixture (increases to $24 to $94 each fixture on 7/1/2025) Fees increase based on CCI. Sewer Capacity Study $1,683 Plan Review Sewer (new, add, repair, abandon) - $29 Sewer Cleanout Only - $29 each Inspection Fee $150 Many different fees for plan checking, permitting Developers to construct sewer extensions or upsize sewers at their expense. 2020 Sewer Cost Recovery Study Report indicated that the Sewer Enterprise Fund had a deficit and rates were not adjusted since 2005. Recommendations were made to adjust fees. Sewer Impact Fees Vary by Zone in East, West and Central Anaheim Single Family – Varies $356 up to $2,235 /Unit Multi-Family – Varies $356 up to $2,235/Unit Commercial – Varies Gross Floor Area (SF)/1,000 SF x ($164 min. or x $1,033 max) Sewer Connection Fees $350/Acre ($250 min.) Sewer Studies/Reviews $4,500 minor, or $8,500 major Plan Checking & Inspection (includes Sewer, Street, Grading and Storm Drain) Single Family $1,000 per lot ($7,000 min.) Multi-Family $500 per lot ($7,000) Specific Plan Review $1,000 Page 164 of 170 Sewer Development Fees FY23-24 YLWD (YLWD provides sewer service to Yorba Linda and parts of Placentia (1,911) and Anaheim (18)) Brea (City of Brea Fees)Placentia (City of Placentia Fees) Anaheim (City of Anaheim Fees) Citywide Sewer Impact Fees for New Development Single Family - $1,560.58 Multi-Family (Master Metered) - $876.01 x Dwelling Units Retail/Commercial – $0.79 x Building Area Square feet (same as $790 x Total SF/1,000 SF) Transit Oriented Development Sewer Impact Fees (Crowder Avenue) Single Family - $9,474 Multi-Family Housing - $5,789 x Dwelling Units Retail/Commercial - $5.26 x Building Area Square feet (same as $5,260 x Total SF/1,000 SF) A fee credit may be given for demolished existing housing units or building square footage for a redevelopment project Sewer Assessment Areas 11 Streets – Varies $1,149/Acre up to $26,105/Acre + Lateral cost Page 165 of 170 WATER SUPPLY PORTFOLIO AND OPTIMIZATION Yorba Linda Water District Water Master Plan Update Page | 4-22 ensure an effective chlorine residual. The District identified Box Canyon BPS and Hidden Hills BPS as candidates for additional chlorine injection sites. SSystemm Chlorination:The District could construct aqueous ammonia facilities at the WTP to provide for full system chloramination. This would be cost effective since all the groundwater is centralized at the WTP and would allow groundwater and imported water to freely mix. With the sources of water freely blending, the imported water connections could be adjusted to operate as a peaking supply should Highland Reservoir level reach low levels. These connections are currently set up to maintain service to upper levels which diminishes the demand from the lower zones supplied by groundwater. Motor Operated Valves (MOVs) The use of seasonal valves is understood to be used for zone separation and to hydraulically favor filling certain reservoirs over others within a single zone. Motor operated valves at Little Canyon Reservoir and at the discharge of Lakeview BPS could be used to achieve the same purpose and allow for the elimination of seasonal valves. 4.7 Costt off Groundwaterr andd Importedd Waterr This section provides a review of the unit costs associated with groundwater production and imported water purchasing, which will be used as the basis for determining the payback for each groundwater utilization scenario. 4.7.1 Cost of Groundwater The cost of groundwater can generally be divided into extraction, treatment, and conveyance energy costs. For FY 2023-24, the following rates from OCWD are anticipated for groundwater extraction from the OC Basin for the District: Replenishment Assessment (RA) = $312/AF Additional Replenishment Assessment (ARA) = $312/AF Basin Equity Assessment (BEA) = Approximately ~$730/AF (Exact value is determined by OCWD at time of billing, roughly set to make extraction above BPP equal to cost of imported water) Below the Basin Production Percentage (BPP) of 77% for FY 2022-23, the District is charged the RA plus the ARA. Above the BPP, the District is charged at a rate equitable with imported water purchases. As part of OCWD’s PFAS Treatment Program, OCWD has agreed to reimburse 50% of the District’s PFAS Treatment System Operations and Maintenance (O&M) cost up to a maximum unit cost of $155.85/AF for the lifetime of the treatment plant. For the purpose of this cost analysis, MKN conservatively assumes that the District’s unit cost for PFAS O&M is this maximum reimbursement amount, which would result in a total cost to the District of approximately $78/AF when accounting for 50% reimbursement from OCWD. To supply groundwater to the District’s pressure zones, several booster pump stations are required to reach higher- elevation regions. TTablee 4-18 provides a summary of per-zone and total annual pumping costs assuming Average Day Demand (ADD) conditions. Page 166 of 170 WATER SUPPLY PORTFOLIO AND OPTIMIZATION Yorba Linda Water District Water Master Plan Update Page | 4-23 TTable 44--118::ZZone Annual Pumping Cost PPressuree Zones ZZonee Annuall Demandd (AFY)33 EElevationn Changee fromm Welll (feet)22 UUnitt Costt ($/AF)11 1A/1B4 2,174 300 62 2 6,470 442 92 3A 3,554 547 113 4A 556 652 135 4B 563 652 135 4C/4CR1/7064 1,761 652 135 4D/3B 1,975 652 135 5A 506 792 164 5B/5BR14 1,228 872 181 5U/5L4 542 1,037 215 6B/6A4 330 1,172 243 6C/6D4 208 1,262 261 TTotall (AFY) 119,867 TTotall Unitt Costt ($/AF) 1118 Notes: 1. Cost derived from C = 0.746 Q h c / (3960 μp μm) where: C = cost per hour (USD/hour) Q = volume flow (US gpm) h = differential head (ft) c = cost rate per kWh (USD/kWh) – Assumed to be $0.15/kWh μp = pump efficiency – Assumed to be 0.85 μm = motor efficiency – Assumed to be 0.85 2. Initial height for elevation change assumed to be average of all well’s pumping water level (124 ft) 3. Zone annual demand is for ADD existing conditions from SSectionn 3.2.4 4. Zones that exclusively receive flow via PRSs were grouped with the upper zone that is providing flow For FY 2023-24, the unit costs for extraction, treatment, and conveyance below are applicable for groundwater: Groundwater extraction at or below BPP: $624/AF Groundwater extraction above BPP: $1,354/AF PFAS O&M: $78/AF Conveyance Energy: $118/AF 4.7.2 Cost of Imported Water The cost of imported water can generally be divided into water purchases and conveyance energy costs. District purchases through MWDOC for FY 2023-24 will carry an equivalent cost of $1,487/AF inclusive of the treated tier 1 rate, capacity charge, readiness to serve fee, meter charge, and water use efficiency choice program. Since the three (3) MWDOC import connections enter the District’s water system at Zone 780, imported water can serve lower Zones 1 through 3 (428 to 675) through PRSs for no additional conveyance cost. However, for serving zones at a higher HGL than Zone 780, imported water also requires the use of booster pump stations. TTablee 4-19 provides a summary of per-zone and total annual pumping costs assuming average day demand (ADD) conditions. Page 167 of 170 WATER SUPPLY PORTFOLIO AND OPTIMIZATION Yorba Linda Water District Water Master Plan Update Page | 4-24 TTable 44--119::IImported Water Conveyance Energy Costs PPressuree Zones TTotall Annuall Demandd (AFY) EElevationn Changee fromm CConnectionn HGLL (feet)22 Unitt Costt ($/AF)11 5A 488 140 30 5B/5BR14 1228 220 46 5U/5L4 542 385 80 6B/6A4 330 520 108 6C/6D4 208 610 126 Total 4,772 Totall Unitt Costt ($/AF) 63 Notes: 1. Cost derived from C = 0.746 Q h c / (3960 μp μm) where: C = cost per hour (USD/hour) Q = volume flow (US gpm) h = differential head (ft) c = cost rate per kWh (USD/kWh) – Assumed to be $0.15/kWh μp = pump efficiency – Assumed to be 0.85 μm = motor efficiency – Assumed to be 0.85 2. Zone connections are summed to enter at a HGL of 780 3. Zone annual demand is for ADD existing conditions from SSectionn 3.2.4 4. Zones that exclusively receive flow via PRSs were grouped with the upper zone that is providing flow For FY 2022-23, the total unit costs for operating on imported water can be categorized as follows: Water Purchase: $1,487/AF Conveyance Energy: $63/AF 4.7.3 Supply Cost Summary Figuree 4-11 summarizes the overall unit cost for groundwater and imported water for FY 2023-24. Figuree 4-11:Total Groundwater and Imported Water Unit Cost (FY 2023-24) 0 200 400 600 800 1000 1200 1400 1600 1800 Groundwater (Below BPP) Groundwater (Above BPP) Imported Water Un i t C o s t ( $ / A F ) RA ARA BEA Purchased Water Pumping Treatment $820/AF $11550/AF $11550/AF Page 168 of 170 ITEM NO. 13.1. AGENDA REPORT MEETING DATE: May 16, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Annie Alexander, Senior Executive Assistant / Board Secretary SUBJECT: Meetings from May 17 - June 30, 2024 Event Date Time Attendance By May YLWD/City of YL Joint Agency Committee Mon, May 20 11:00 AM DesRoches/Lindsey SAWPA Commission Tue, May 21 9:30 AM CalMutuals Board Tue, May 21 2:00 PM Barbre Yorba Linda City Council Tue, May 21 6:30 PM Hawkins Placentia City Council Tue, May 21 7:00 PM Lindsey Brea City Council Tue, May 21 7:00 PM Hernandez OC San Headquarters Ribbon Cutting Wed, May 22 4:30 PM Lindsey OC San Board Wed, May 22 6:00 PM Hawkins YL Planning Commission Wed, May 29 6:30 PM Hawkins (As Needed) Board of Directors Regular Meeting Thu, May 30 8:30 AM ISDOC Quarterly Meeting Thu, May 30 11:30 AM June SAWPA Commission Tue, Jun 4 9:30 AM PYLUSD Board Tue, Jun 4 5:00 PM Hernandez Yorba Linda City Council Tue, Jun 4 6:30 PM Hernandez Brea City Council Tue, Jun 4 7:00 PM Barbre Placentia City Council Tue, Jun 4 7:00 PM DesRoches MWDOC Board Wed, Jun 5 8:30 AM Lindsey OCWD Board Wed, Jun 5 5:30 PM DesRoches WACO Fri, Jun 7 7:30 AM AWWA Conference Tue, Jun 11 8:00 AM DesRoches MWDSC Board Tue, Jun 11 1:00 PM AWWA Conference Wed, Jun 12 8:00 AM DesRoches OC LAFCO Commission Wed, Jun 12 8:15 AM YL Planning Commission Wed, Jun 12 6:30 PM Hawkins (As Needed) AWWA Conference Thu, Jun 13 8:00 AM DesRoches AWWA/ACWA PFAS WTP Tour Thu, Jun 13 9:00 AM SAWPA Commission Tue, Jun 18 9:30 AM CalMutuals Board Tue, Jun 18 2:00 PM Barbre Page 169 of 170 PYLUSD Board Tue, Jun 18 6:00 PM Hernandez Yorba Linda City Council Tue, Jun 18 6:30 PM DesRoches Placentia City Council Tue, Jun 18 7:00 PM Hawkins Brea City Council Tue, Jun 18 7:00 PM Lindsey MWDOC Board Wed, Jun 19 8:30 AM Lindsey OCWA Meeting Wed, Jun 19 11:30 AM OCWD Board Wed, Jun 19 5:30 PM DesRoches Financial Review Group Wed, Jun 26 4:30 PM Lindsey/DesRoches OC San Board Wed, Jun 26 6:00 PM Hawkins YL Planning Commission Wed, Jun 26 6:30 PM Hawkins (As Needed) Board of Directors Regular Meeting Thu, Jun 27 8:30 AM As of May 9, 2024 Page 170 of 170