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HomeMy WebLinkAbout2011-06-01 - Board of Directors Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Wednesday, June 1, 2011, 2:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Michael J. Beverage, President Phil Hawkins, Vice President Ric Collett Robert R. Kiley Gary T. Melton 4. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 5. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 5.1. Draft Strategic Plan Review and Discussion 5.2. Draft Budget For Fiscal Year 2011/2012 6. ADJOURNMENT 6.1. The next regular meeting of the Board of Directors will be held June 9, 2011 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 5.1 AGENDA REPORT Meeting Date: June 1, 2011 Subject: Draft Strategic Plan Review and Discussion ATTACHMENTS: Name: Descnpion n: 1 V PC Board Budget Workshop Discussion Agenda June 1.doc Discussion Agenda Backup Material Strategic Plan _Draft _053111.docx Strategic Plan Draft Backup Material YORBA LINDA WATER DISTRICT BOARD BUDGET WORKSHOP JUNE 1, 2011 DISCUSSION AGENDA AND LIST OF HANDOUTS 1. Draft Strategic Plan Review and Discussion a. Review Draft (Draft Strategic Plan Handout) b. Proposed timeline for adoption (June 9) 2. Proposed Budget Overview (PowerPoint with additional Handouts) a. Budget Assumptions b. Factors driving cost increase c. Total Expenses and Revenues Overview d. Budget Summary Sheets (Handout) i. Department Summaries ii. Public Information/Legislative Affairs Division Detail e. Variable Water Costs Discussion f. Organizational Structure (2 Handouts) g. Capital Improvements (Spreadsheet and Descriptions Handouts) i. Special Projects Discussion (Elk Mountain Site Slides) ii. Special Projects Discussion (Meter Replacement Slides) h. Vehicles and Equipment Outlay i. Cost reductions and Service Improvements j. Bond Rating and Debt Service Ratio k. Reserve Policy Revisions (Slide) 3. Questions and Further Direction a. Timeline for Adoption i. Full Draft Budget Document to Board June 9 ii. Adopt Budget and Resolutions June 23 Yorba Linda Water District DRAFT INTRODUCTION The Yorba Linda Water District (District) is an independent special district serving approximately 23,800 accounts within the city of Yorba Linda and portions of Placentia, Brea, Anaheim and unincorporated Orange County. In addition to supplying water to a predominantly residential community, the District is also responsible for maintaining wastewater collection systems in the community. Like many other water agencies in California, the District is facing a fast- changing operating environment with unprecedented challenges on many fronts. These challenges include an uncertain economic climate that has resulted in a decrease in District revenue; water supply and quality issues; environmental pressures in the Sacramento-San Joaquin Delta, threatening or reducing our imported water supplies; regulatory mandates enforcing permanent conservation levels; urgently needed infrastructure maintenance and upgrades; rising employee healthcare costs; increasing media scrutiny; and the impending retirement of many highly trained, knowledgeable staff. To address these challenges, the District, with the assistance of MAP Consulting, developed a strategic plan outline in 2009. This document takes that outline one step further, for the years 2011-2013, creating a plan that can be adopted by the Board of Directors and utilized for budgeting resources and forward planning. The plan will be integrated into the FY 2011-2012 budgetary process to ensure that resources are properly allocated to achieve the goals and objectives set forth in this plan. The goals, objectives and action steps within this strategic plan are determined by the mission and vision statements and core values of the District and further established through the process initiated by the Board of Directors at their Strategic Planning Workshop on January 20, 2011. Stakeholders participating in this process include all five Board Members, the Executive Management team and members of the Employee Productivity-Innovation- Communications (EPIC) Committee, made up of staff representatives with varied levels of experience and expertise from across all District departments. 21 Mission and Vision Statements Mission Statement Yorba Linda Water District will provide reliable, high quality water and sewer services in an environmentally responsible manner, while maintaining an economical cost and unparalleled customer service to our community. Vision Statement Yorba Linda Water District will become the leading, innovative and efficient source for high quality reliable services. 3~ GOALS, INITIATIVES AND STRATEGIES Through the District's strategic planning process, goals are identified as challenges the District will address and opportunities for improvement that support the District's mission and further its vision. Initiatives are defined as high-level concepts or plans for accomplishing the identified goals. Strategies are defined as action steps to achieving the identified initiatives, which in turn, achieve the identified goals. The following five goals were identified as the most critical challenges for the District to address in the next two years. Milestones for the strategies and action assignments are incorporated into the appendix of this document, and will be adapted as needed in conjunction with the FY 2011/2012 and the FY 2012/2013 Budget process. CP: Community Partnership Goal FR: Fiscal Responsibility • • Operational GoALM Service Reliability 4~ Board Member Opportunities One of the most important functions of the District's Board of Directors is the governance of the agency through the establishment of broad policies and objectives. It is, therefore, vitally important to the agency that the Board of Directors understand and adhere to their set roles. The following questionnaire details the Board of Directors' beliefs prior to the development of this document and, in part, helped to determine areas for improvement outlined in the 2011- 2013 Strategic Plan. 413121110 4 = Outstanding, 3 = Good, # responses 2 = Fair, 1 = Poor, O Unknown for each score Board members clearly understand their responsibilities to 3 2 the board and to the organization I clearly understand my responsibilities to the board and 2 3 to the organization The board contains the appropriate range of experience 2 3 Board meetings are conducted on a regular basis 4 1 The board meetings are productive and effective 1 3 1 The board is appropriately involved in community events 3 2 I am involved in community events 1 3 1 The board receives accurate and timely information about 4 1 the financial status of the organization The board regularly attends employee appreciation events 1 2 2 Board members come prepared to the meetings 4 1 I come prepared to the meetings 5 The board sets the policy direction for the future activities 5 of the organization I believe that the organization is meeting its stated purpose 5 The board safeguards the assets of the organization by 4 1 having effective controls in place The board works closely with the executive staff to develop 1 4 short-term and long-range projects, goals and objectives The board regularly assesses whether the organization is 4 1 meeting it goals and stated purpose Rate the working relationship between the board and the 1 4 general manager 5~ District Opportunities Just as the Board of Directors utilized a questionnaire to establish areas of strength and necessary improvements, all of the stakeholders involved in the 2011-2013 Strategic Planning process also utilized a questionnaire as a guide for the development of the Strategic Plan, focusing on key words in the Mission and Vision Statements. Each key word is rated on a scale of 1 to 10, with 10 being the highest possible rating. Mission Statement Effectiveness 10.0 8.0 6.0 4.0 2.0 0.0 Z" CP 110 ~c CP Vision Statement Effectiveness 10.0 8.0 6.0 i 4.0 2.0 0.0 Overall Leading Innovative Efficient High Quality Reliable 6~ District Core Values All of the stakeholders involved in the 2011-2013 Strategic Planning process utilized a second questionnaire as a guide for the development of the Strategic Plan, focusing on potential core values for the District. A list of core values from the 2009 Strategic Plan outline, as well as from the 2011 Strategic Plan workshop was incorporated into the questionnaire. Each core value was then rated on a scale of 1 to 10, with 1 being the most important value to the District. The results are listed below, with the five highest ranked core values including: Integrity, Accountability, Responsibility, Transparency and Teamwork. These core values form the foundation on which the District will perform work and conduct itself. They underlie how the District's employees and Board will interact with each other, as well as with customers, and which strategies the District will employ to fulfill this Plan. They define the character of the agency and guide how decisions are made. Core Values Statement The Yorba Linda Water District Board of Directors and staff are guided in everything we do by the following core values: Integrity- We demonstrate integrity every day by practicing the highest ethical standards and by ensuring that our actions follow our words. Accountability- We acknowledge that both the Board and staff of the District are accountable to the public that we serve, as well as to each other. Responsibility- We take full responsibility for our actions- both our successes and our opportunities for growth. We maintain a commitment of courtesy, assessment and resolution with all customer concerns. Transparency - We promote a culture where we actively listen to our customers and communicate openly about our policies, processes and plans for the future. Teamwork - Success centers on all departments working together and sharing information and resources to achieve common goals. We are dedicated to ensuring that every voice of the District, from the Board to each individual employee is treated with dignity and respect, and that differences are valued and individual abilities and contributions are recognized. 7~ Goal CP: Community Partnership As a public agency, the District is expected to demonstrate the prudent use of public funds. The District's services should provide tangible benefits that are of value to the community. Strengthening existing relationships with key stakeholders, including customers and agency partners, while demonstrating our dedication to transparency in the most professional manner, is paramount. Initiatives Strategies Enhance Resources for Public Information 8v Governmental Affairs Division Develop a Public Relations Master Plan with Measurable Goals Have Board of Directors and YLWD Staff Attend More Events and Inter-governmental Meetings within the Local Community Continue to Support Regional Training and Multi-Agency Workgroups through the Joint Use of the Administration Building 8~ Effectively Use Broad Spectrum Communication Opportunities Provide Financial Incentives and Rebates for Water Use Efficiency Develop and Expand a Youth Education Program Consider Participation in the California Urban Water Conservation Council's Best Management Practices Enhance the District's Regional Water and Wastewater Industry Participation a0" 9 Goal FR: Fiscal Responsibility The District is ranked highly by financial ratings organizations, has proven to be a good financial steward, and consistently strives for a clear, well- documented budget process and clean annual financial audit. However, with the state and national economic crisis, the District has an even greater responsibility to demonstrate effective and responsible use of public funds while responding to ever-increasing financial challenges. Initiatives Strategies Develop a Comprehensive Multi-Year Financial Plan Prepare a High Level Annual Budget Document and Comprehensive Annual Financial Report and Compete for Recognition by the Government Finance Officers Association 10 1 Revise the Water and Sewer Rules and Regulations and Evaluate Fee Schedules Regularly for Proper Cost of Service Coverage Evaluate and Revise the Sewer Fund Allocation Maintain Commitment to a Strong Debt Services Ratio Review the Reserve Policy and Funding Levels Annually Analyze the Asset Management Plan to Determine Future Asset Replacement Needs Implement an Approach to Ensure Reserves are Responsibly Funded Research and Obtain Grant Funding Whenever Feasible M-4 Review Opportunities to Earn "Cash-Back" on Operating Expenses through Commercial Credit Card Accounts 7777 Manage Cash Flow to Maximize Investment Income Complete the Cost of Service and Water Rate Study Evaluate Equitable Rate Structures that Promote Conservation and Efficiency 2 7 E 2. 9 $ 7 o L 6 4 38 ■3U -■E ■.■MEMEMMEM■M■M$■■■ ■■■■M■M..■ t■_ ■■.■■N ■.r E■■.■■M■ ■.O■■■■■■■■E■ in ■ MEN= g■ q MEMO ■■■■■M■■■■■■■■■ NO. 13■ ■■■EE■ ■■■■■■E■■ ■ NE IM■■■■■OE■■■■O■■■ ■ 1 ■ ■ M M 12 Goal OE: Operational Efficiency The District has provided reliable and trusted service for more than one hundred years, yet it recognizes the importance of continual improvements to increase operational efficiency. Initiatives r"- OE Optimize Use • Existing Technologies OE 2: Address Identified Assessment Survey OE 3: Consider Utilization of a Peer Review Survey Strategies L Identify the Current Functionality of Existing Technology and Determine if it is Being Utilized to Full Capacity • Evaluate How Each Department Might Make Further Use of Existing Technology Provide, Support and Encourage Employee Training 13 ssessment J~L ff Identify Core Inefficiencies Develop Measurable Productivity Goals Engage Employees in Methods of Addressing Inefficiencies J Determine the Cost Benefit Ratio of a Peer Review Survey a • Establish a Team to Determine the Focus of the Survey s Institute Guidelines for Areas to Be Addressed 61 t 'IJAr 14 Goal SR: Service Reliability The ultimate purpose of District assets and infrastructure is to safely and reliably provide vital services to the public. Our goal is to maintain all assets for optimal continuity of District services. Effective management of assets involves monitoring asset conditions against the level of service to manage risk of failure, planning for future financial needs and anticipating uncertainties or changing levels of service. Initiatives Strategies Ail Continue with Efforts to Annex District Service Area to Orange County Water District Forecast Service Demand Projections Engage with Regional Agencies on Water Supply Issues Strengthen Existing Emergency Operations Partnerships 15 SM, Develop Additional Well Sites Evaluate Alternative Water Sources SR 2: Explore Service Boundary Opportunities L C Evaluate Feasibility of Providing Additional Water Services within the Region > Evaluate Feasibility of Providing Additional Wastewater Services within the Region Evaluate Feasibility of Providing Other Professional Services within the Region • ' ~ III I ~ Complete Implementation of Five Year Capital Improvement Plan from FY 2011-2015 with adopted amendments Continue Planning for Long Term Capital Improvements and Replacements into the future 16 Goal WE: Workforce Engagement The District is known for its highly skilled staff and quality work. In order to retain a highly productive and proficient workforce, maintaining and building on employee engagement in the District will be critical to future success. With uncertain economic times to continue in the near term, however, greater calls for efficiency and responsiveness will require staff to be flexible and prepared to demonstrate effectiveness and accountability. Initiatives Strategies Maintain Competitive Compensation via Classification and Compensation Surveys Explore Alternative Benefits .y Establish Career Development Expectations of Existing Employees Develop Methodologies to Assist Employees in Attaining Career Expectations 17 Continue to Support Additional Training for Staff Encourage Staff Participation in Professional Organizations and Local Civic Groups Execute Timely and Consistent Employee Performance Evaluations Identify Key Roles for Succession Define the Competencies and Motivational Profile Required for Key Roles Identify Individuals with the Potential to Perform Highly in e: Key Roles Develop Methodologies to Assist Employees in Preparing for Advancement WE 3: Enhance Employee Relations Implement a Program to Recognize Employees for Excellence Conduct Quarterly All Hands Meetings Continue to Encourage Employee Training in Leadership and Technology 18 Acknowledgements The following individuals contributed to the creation of this Strategic Plan. Board of Directors Michael J. Beverage, President Phil Hawkins, Vice-President Ric Collett Robert R. Kiley Gary T. Melton Staff Annie Alexander Dave Barmer Cindy Botts Steve Conklin Lee Cory Nicole Dalton Jennifer Hill Harold Hulbert Gina Knight Delia Lugo Anthony Manzano Damon Micalizzi Stephen Parker Robyn Shaw Ken Vecchiarelli Art Vega L J 19 Appendix: Initiatives and Action Plans Goal CP: Community Partnership Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts CP 1: Increase Brand Recognition within the Community Include in Enhance Resources Retain Public for Public Information Public Information & Gov't 2011/ 12 Budget CP 1-A Jul-11 Dec-11 Information and proposed & Governmental Affairs Affairs Division Officer Specialist/Interns organizational changes Current Supplies Develop a Public and Se rvi cc s Budget Include in Public total should be Relations Master Plan P FY2011/ 12 Budget CP 1-B Jul-11 Jun-12 Information adequate with with Measurable and proposed Officer addi ti onal staff to Goals expenses assist in completing program objectives. Have Board of Directors andYLWD Estimated67% Include in Staff Attend More Immediately increase in BOD BOD/GM/PIO/ FY2011/12 Budget CP 1-C Local and Regional following Nov- On-going Staff total salaries, and proposed Events andInter- 2010 election benefits and expenses governmental expenses Meetings Continue to Support Regional Training and Multi -Agency Adopt Joint Use General Facilities Agreement CP 1-D Workgroups through On-going On-going None Manager in first quarter of FY the Joint Use of the Administration 2011/ 12 Building Effectively Use Broad Manage within Implement Audio Spectrum Public expanded Public Recording ofYLWD CP 1-E On-going On-going Information Information & Communication BOD Mtgs by Apr-11 Officer Government Affairs Opportunities Division and Video by Jul-11 20 1 Goal CP: Community Partnership (Continued) I I Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts CP 2: Increase Public Awareness of Water and Wastewater Related Issues Provide Financial Include in Incentives and Additional $10,000 2011/ 12 Budget CP2-A Rebates for Water Use Jul-11 On-going BOD/GM/PIO for FY 1 l/ 12 and proposed Efficiency expenses in PI/GA Division Include in Develop and Expand a Public FY2011/ 12 Budget Additional $14,500 CP 2-B Youth Education Jul-11 On-going Information for FY 1 l/ 12 and proposed Program Officer expenses in PI/GA Division Consider Explore and report on Participation in the agency California Urban Assign Task to responsibility, CP 2-C Water Conservation Sep-11 Dec-11 GM Management impacts and benefits Council's Best Analyst with Management recommendation by Practices Dec-11 Enhance the District's Regional Board Budget Include in CP 2-D Water and On-going On-going BOD/GM/Staff impacts included in FY2011/12Budget Wastewater Industry CP 1-C; Staffimpacts and proposed Participation minimal expenses Goal FR: Fiscal Responsibility Completion Financial/ Staffing Strategies Start Date Date Lead Party Impacts Comments FR 1: Maintain Fiduciary Responsibility Finance Accounting Develop a Water: Included in Committee to Finance FR 1-A Comprehensive Multi Feb-11 Oct-11 Director Cost of Service Study consider Adding Year Financial Plan Sewer: $10,000 Sewer Model to Contract in Jun-11 Prepare a High Level Annual Budget Document and Comprehensive Finance $900 in application Include Fees in FY FR 1-13 Annual Financial Feb-11 Jun-11 Director fees 2011/12 Budget Report and Compete for Recognition by the Government Finance Officers Association 21 Goal FR: Fiscal Responsibility (Continued) Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts Revise the Water and Sewer Rules and Complete Study in Regulation and General House and FR 1-C Evaluate Fee Feb-11 Dec-11 Manager/ None Recommend Fees Schedules Regularly Finance Structure Update for for Proper Cost of Director Adoption by December Coverage 2011 Evaluate and Revise Revised Allocation FR 1-D the Sewer Fund Nov-10 Mar-11 Finance None included in FY Director Allocation 2011/ 12 Budget Substantial Rate Maintain Include in Commitment to Sept-09 Rate Quarterly Board of Increase Adopted in FR 1-E None Sept 2009 followed by Strong Debt Services Increase Financial Directors Pass Through Ratio Review Increase in Aug 2010 FR 2: Increase Reserve Funding Latest Revisions Reviewed by Finance Review the Reserve Finance FR 2-A Policy and Funding Apr-11 Jul-11 Director/Board None Accounting Committee for Board Levels Annually of Directors of Directors to Consider in Jun-11 Annual Review of Analyze the Asset Annual Plan to Determine if FR 2-13 Management Plan to Dec-11 Review Prior Engineering None Asset Replacements Determine Future to Budget and Manager are on Track or Needs CIP Update Asset Conditions are Reassessed Annual Review of CIP Implement an Financial Finance Rates, COP's and Approach to Ensure FR 2-C Apr-11 Needs Director/Board To Be Determined Other Capital Reserves are Responsibly Funded Included in of Directors Financing Options Budget Preparation FR 3: Identify and Develop Additional Revenue Options Research and Obtain Gauge Cost General Consider Part-time Effectiveness on FR 3-A Grant Funding On-going On-going Manager Grant Coordinator Project by Project Whenever Feasible Basis Review Opportunities Card Options Discussed with to Earn "Cash Back" FR 3-13 on Operating Expense Jan-11 On-going Finance $200 in annual fees Finance -Accounting Director Committee in March through Commercial - Add'1 research Credit Card Accounts Required Manage Cash Flow to Track Opportunities FR 3-C Maximize Investment On-going On-going Finance Negligible transfer and Effectiveness Income Director fees with Quarterly Investment Reports 22 1 Goal FR: Fiscal Responsibility (Continued) I I Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts FR 4: Provide a Rate Structure that Promotes Water Use Efficiency Board to Consider Complete the Cost of Finance Rate Structure FR 4-A Service and Water Mar-10 Mar-12 Director/Board None Alternatives in Oct Rates Study of Directors 2011 Evaluate Equitable Board of Cost of Billing Board to Consider FR 4-13 Rate Structures that Oct- 11 Mar- 12 Directors/ System Revisions to Rate Structure Promote Conservation General be Determined if Alternatives in Oct and Efficiency Manager Needed 2011 Goal OE: Operational Efficiency Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts OE 1: Optimize Use of Existing Technologies Identify the Current Functionality of IT Possible Costs for Existing Technology OE 1-A Jul-11 Sep-11 Director/EPIC Additional Staff and Determine if it is Being Utilized to Full Committee Training TBD Capacity Evaluate How Each Department Might EPIC Possible Costs for OE 1-13 Make Further Use of Sep-11 Dec-11 Committee/ Additional Staff Existing Technology Executive Staff Training TBD Provide, Support and Budget Preparation OE 1-C Encourage Employee On-going On-going Executive Staff to Include Training and Professional Training Development OE 2: Address Inefficiencies Identified in the Self-Assessment Survey Identify Core EPIC OE 2-A Jul-11 Jun-12 None Inefficiencies Committee Develop Measurable EPIC OE 2-13 Aug-11 Jun-12 None Productivity Goals Committee Engage Employees in EPIC OE2-C Methods of Addressing Sep-11 Jun-12 None Committee Inefficiencies 23 OE: Operational Efficiency (Continued) I I Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts OE 3: Consider Utilization of a Peer Review Survey Complete Cost Determine the Cost Benefit Analysis and OE 3-A Benefit Ratio of a Jul-11 Sep-11 Management None Present to Board of Peer Review Survey Analyst Directors Prior to initiating Peer Review Establish a Team to OE 3-13 Determine the Focus Sep-11 Oct-11 EPIC $45,000 Prepare for Focused Committee Peer Review of the Survey Institute Guidelines Results should OE 3-C for Areas to Be Sep-11 Dec-11 EPIC Reflect Cost Savings Addressed Committee and Efficiency Increases Goal SR: Service Reliability Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts SR 1: Work Toward Service Reliability and Efficiency Continue with Efforts to Annex District Environmental $110,000 included in SR 1-A Service Area to On-going On-going General FY 2011/ 12 Budget Impact Report in Orange County Water Manager for CEQA Progress through District OCWD Completed with SR 1-13 Forecast Service Oct-10 Jun-11 Engineering Costs Included in FY Urban Water Demand Projections Manager 2010/ 11 Budget Management Plan Update Completed Recycled Engage with Regional General Water Study SR 1-C Agencies on Water On-going On-going Manager Continue to Monitor Supply Issues De sal and Other Local Projects Strengthen Existing Complete 2011 Emergency Emergency Update of Emergency SR 1-D Operations On-going On-going Operations Response Plan & Partnerships Coordinator/GM Participate in Regional Exercises Maximizing this SR 1-E Develop Additional Mar- 11 Jun-12 Engineering est. $1.5M per site resource will lower Well Sites Manager Operating Costs by $1M per year Evaluate Alternative Engineering Develop Goals and SR 1-F Objectives after Water Sources Manager Completing SR 1-E 24 1 Goal SR: Service Reliability (Continued) Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts SR 2: Explore Service Boundary Opportunities Evaluate Feasibility of Providing Additional General Analyze Cost Benefit SR 2-A Jul-11 Jun-12 of Acquiring Locke Water Services with Manager Ranch Water System the Region Evaluate Feasibility of Analyze Cost Benefit Providing Additional General of Acquiring SR 2-13 Wastewater Services Jul-11 Jun-12 Manager Placentia Wastewater the Region Collections System Evaluate Feasibility of Analyze Cost Benefit SR 2-C Providing Other Jul- 11 Jun-12 General of Partnering in GIS Professional Services Manager Services with Local with the Region Agencies SR 3: Continue Implementation of Capital Improvement Project Plan 2007-2012 Complete Current Capital Implementation of Projects Update Five-Year Capital Completes the Engineering See Annual Updates SR 3-A Improvement Plan On-going On-going Aggressive Cl Plan Manager ofThree Year CIP from FY 2007-2012 started in 2003 and with Adopted 2007 with supporting Amendments Bond Sales Continue Planning for Annually Review SR 3-13 Long-Term Capital On-going On-going Engineering Service Reliability Improvements and Manager and As set Replacements Replacement Needs 25 1 Goal WE: Workforce Engagement Completion Financial/ Staffing Strategies Start Date Date Lead Party Impacts Comments WE 1: Retain a Highly Skilled and Capable Workforce Maintain Competitive Compensation via WE 1-A Classification and On-going On-going HR Manager TBD Compensation Surveys WE 1-13 Explore Alternative Jul-11 Jun- 12 HR Manager LongTerm Cost Include in FY Benefits Savings Expected 2012/13 Budget Establish Career Development Initiate one-on-one WE 1-C Jul-11 Dec-11 Executive Staff None Expectations of employee interviews Existing Employees Develop Include Methodologies to Executive recommendations in WE 1-D Assist Employees in Jan-12 On-going Staff/EPIC None employee annual Attaining Career Committee reviews Expectations Continue to Support General Incremental Budget WE 1-E Additional Training On-going On-going Manager/HR Adjustments if for Staff Manager Needed Encourage Staff Track and Report on Participation in Progress Regularly to General WE 1-F Professional On-going On-going Manager None Personnel-Risk Organizations and Management Local Civic Groups Committee Execute Timely and Track and Report on Consistent Employee General Progress Regularly to WE 1-G Performance On-going On-going Manager None Personnel-Risk Evaluations Management Committee WE 2: Develop a Comprehensive Succession Plan Present Draft Report General to Personnel-Risk Indentify Key Roles WE 2-A Jul-11 Sep-11 Manager/HR None Management for Succession Manager Committee at Oct- 2011 Meeting Define the Present Draft Report Competencies and General to Personnel-Risk WE 2-13 Motivational Profile Jul-11 Sep-11 Manager/HR None Management Required for Key Manager Committee at Oct- Roles 2011 Meeting Identify Individuals Present Draft Report General to Personnel-Risk with the Potential to WE 2-C Perform Highly in Key Jul-11 Sep-11 Manager/HR None Management Role s Manager Committee at Oct- 2011 Meeting Develop Present Draft Report Methodologies to HR to Personnel-Risk WE 2-D Assist Employees in Oct-11 Dec-11 Manager/EPIC None Management Preparing for Committee Committee at Jan- Advancement 2012 Meeting 26 1 Goal WE: Workforce Engagement (Continued) I Strategies Start Date Completion Lead Party Financial/ Staffing Comments Date Impacts WE 3: Enhance Employee Relations Implement a Program Cost Savings from WE 3-A to Recognize Jul- 11 Sep-11 EPIC TBD Efficient and Employees for Committee Excellent Service Excellence May Fund Program Begin with Adopted WE 3-13 Conduct Quarterly All- Jul- 11 Quarterly General None Strategic Plan and Hands Meetings Manager Budget Goals in early Jul 2011 Present to Encourage Employee Opportunities and General Program Progress to WE 3-C Training in On-going On-going Manager Personnel-Risk Leadership and Technology Management Committee Regularly 27 ITEM NO. 5.2 AGENDA REPORT Meeting Date: June 1, 2011 Subject: Draft Budget For Fiscal Year 2011/2012 ATTACHMENTS: Name: Dosciiption: a ype: Budget FY2011-12 PPT.pdf Power Point Presentation Backup Material Org Chart _FY_2010-11_Altered _Positions.pdf Org Chart Backup Material Org Chart Rev FY 2011-12.pdf Revised Org Chart Backup Material CIP Budget 16May2011.xlsx CIP Budget Backup Material Capital _Improvements _Prog_for FY_2011-12.docx CIP Program Backup Material ElkMtn PowerPoint 1June2011.pdf Elk Mtn PowerPoint Presentation Backup Material 2012_Meter _Replacement _Program.pdf Meter Replacement PowerPoint Presentation Backup Material Recommended Changes to the Reserve Polices Reserve Policy Handout Backup Material (2).pdf 6/8/2011 17 Water Dfttrict Proposed Budget FY 2011/12 Presented 6y: Ken Vecchiarelli June 1, 2011 Budget Assumptions • Variable Water Costs & Water Revenue - Based on Assumed Usage of 22,350 AF • FY 2010/11 Conservation Goal: 10% Cut, Actual Usage: 17% Cut • FY 2011/12 projects a 4% cut from the CY 2004-06 baseline • OCWD BPP - Increased from 62% to 65%, (YLWD's BPP is 48% of total demands) - Cost increase to $254/AF (from $249), effective July 1, 2 011 - Ground Water: 10,750 AF • MWDOC (FY 2011/12) - Import Water:11,600AF - - Cost increase to almost $798/AF (from $744), effective Jan. 1, 2012 ~a 1 6/8/2011 17 C_~ Expenses Key Factors • $1,029,000 Variable Water Costs - Increased Import Water Costs to MWDOC - Assumes 6% increase in Water Purchased over FY 10/11 Budget • $317, 000 Salary-Related Expenses - $140,000 Benefits (PERS, medical, dental) - $138,000 Max. Merit Increases & Position Reclass - Holding at 76.5 FTE's both years cam" ~i ~ r 5w- ~ •^il • Key Factors, Continued • $543,823-- Depreciation - Aggressive CIP Spending in FY 2010/11 - Acquisition of City of YL Sewer System • ($1,000)-- Supplies & Services - $110,000 CEQA Report for OCWD Annexation - $60,000 Legislative Advocate - $77,000 Public Affairs - $60,000 Safety Program Consultant 2 6/8/2011 17 C-~ Budget Summary Current Budget Forecast Proposed Budget (FY 2010/11) (FY 2010/11) (FY 2011/12) Total Operating Revenue $27,495,473 $24,471,748 $29,198,311 Total Non-Operating Reven UE $1,615,114 $1,742,329 $1,555,239 Total Revenue $29,110,587 $26,214,077 $30,753,550 Variable Water Costs $12,667,236 $10,750,147 $13,696,538 Salary-Related Expenses $7,624,683 $6,669,204 $7,941,306 Supplies & Services $3,996,584 $3,311,775 $3,995,833 Total Operating Expenses $24,288,503 $20,731,126 $25,633,677 Total Non-Operating Expense $2,044,147 $2,046,360 $2,029,619 Total Expenses $26,332,650 $22,777,486 $27,663,296 Depreciation $5,017,876 $5,029,042 $5,561,699 Capital Contributions $145,860 $512,189 $425,586 Income (Loss) ($2,094,079) ($1,080,262) ($2,045,859) Total Expenses FY 2011/12 12% 6% 17% i Depreciation ■ Variable Water Costs 24% Salaries & Benefits ■ Supplies & Services 41% Long Term Debt "Illr _ Total Budget: $33,224,995 _ 00 3 6/8/2011 Variable 17 C-~ Water Costs FY 2011/12 9% 20% 2 Power 71% ■ Groundwater Import Water Total Budget: $13,696,538 2ZIf'!~ ~ ~ - History • Variable Water Costs $14.00 $13.70 $12.00 $12.67 $10.00 $10.69 $10.75 $8.00 `o $6.00 $4.00 $2.00 $0.00 FY09/10 (Actual) FY10/11 (Budget) FY10/11 (Forecast) FY11/12 (Budget) 00 4 6/8/2011 Capital 17 C-~ Improvements Projects (CIP) Outlay FY 2011/15 3% 12% x Pre-Approved ■ Current CIP Cost Increases New CIP Proposed 85% AWW00 Total:$ 49,164,000 2ZIF J z Vehicles & Capital Items $700.0 - $600.0 FY 2009/10 Total: $628,300 $500.0 - FY 2010/11 Total: $286,500 $400.0 FY 2011/12 Total: $776,850 $300.0 $200.0 $100.0 FY 2009/10 FY 2010111 FY 2011112 It Eng. ■ Fin. I.T. ■ Ops. 00 5 6/8/2011 17 C_~ • Reductions & Service Improvements Streamlined Deposit Process Retrieval of Major Email Archiv s Infrastructure Simplified I Reliability of 2 Funded SCADA Positions Enhanced L Eliminated A Web Bill Pay • . used by Customers s P Ratings • YLWD Bonds YLWD Bonds Revised to AA+, with a Stable Outlook Rating Rationale Based On: • Rate Increases Approved Sept '09 and Aug '10 • A Rate Study/Future Rate Structure Change • No Additional Near-Term Debt 6 6/8/2011 17 - ; l :4 r Income Less Expenses 0 MM 1 M Audit Basis (1,080,000) (2,050,000) Debt Service 1.97 1.79 Coverage Basis * Budget Basis 2,680,000 2,210,000 " Need Debt Service Ratio to Trend Towards Historical Norms (2.0) QUESTIONS? ~ °t-1 Y ~ ~ t• t'Lr '1s. ~T y.+ r > 1l.`" - l -/A[/ 7 Yorba Linda Board of Water District Directors General Engineering Manager Assist. GM/IT Manager Director I Executive Secretary G.I.S. Info. Systems ` 1 Quality Engineering Project Water Secretary Engineer Engineer Public Information Officer I Info. Systems Technician J Instrumentation 1 Eng. Technician Sr. Construction 1/11 Technician 1/11 Technician Project It Inspector Engineer 3 PrE i2Lj I FTE Management Analyst Construction Inspector J ~J~ . Manager 1 o u.r Sr. Accountant Customer Svc. Personnel Sr. Fleet Operations S~ater Maint. Chief Plant Supervisor Technician Mechanic Assistant I d. Operator Dist. Accounting Customer Srv. Mechanic Sr. Maintananc eter Services 11/111 Facilities Sr. Plant Operator Operator Assistant 1/11 Rep. 1/11/111 Lead 2 FTE J 4 FTE 2 FTE 4 F1 Meter Reader 1 Dist. Maintanance Plant Operator 1/11 Ma rator [if If Worker I If Organization Chart FY 2010-11 Total: 76.5 positions budgeted Job Classification Legend Altered/Eliminated in FY 11/12 Management Part-Time Supervisory/Confidential Bargaining Unit Directors Yorba Linda Water District General Manager Executive Secretary Engineering I.T. Manager Manager --r Public Information Officer Sr. Project Engineering Water Quality Project Manager Secretary Engineer Engineer Management S.C.A.D.A. Info. Systems G.I.S. I I I Analyst Administrator Administrator Administrator WQ Technician 1/11 Sr. Construction Project Eng. Technician Inspector Legislative Pu* Affairs Instrumentation Info. Systems Engineer If I FTE Affairs Intern Intern Technician Technician 1/11 Construction spector Finance Operations Manager Manager HR & Risk Manager Sr.Account I Sr. Fleet Water Maint,t Chief Plant ant Customer Svc. Mechanic Superintende Operator Technician Mechanic Sr. Maintananc Accounting Customer Srv. 11/111 Dist. Operato Facilities Sr. Plant Assistant 1/11 Rep. 1/11/111 Meter Services Maintenance Operator eter eader Operator [if Operator 11 Worker I If I Organization Chart FY 2011-12 Job Classification Legend Total: 76 positions budgeted 3 part-time positions Management Part-Time Supervisory/Confidential Bargaining Unit PROPOSED CIP BUDGET FY 11/12 FY 10/11 10/11 Project Increase/ Total Project Expenditures Expenditure FY 11/12 Total Future Project # Project Description Budget (Decrease) Budget Thru 6/30/2010 Forecast Budget Budgets FY12/13+ 2008-14 Highland BPS Upgrade $ 6,100,000 $ - $ 6,100,000 $ 665,129 $ 1,800,000 $ 3,635,000 $ - 2010-06 Ohio&Oriente Pipeline Replacement $ 615,000 $ 985,000 $ 1,600,000 $ 64,490 $ 275,000 $ 1,250,000 $ - 2010-12 2010 Waterline Project $ 1,575,000 $ 415,000 $ 1,990,000 $ 279 $ 220,000 $ 1,770,000 $ - 2007-11 Well No. 20 $ 1,500,000 $ 500,000 $ 2,000,000 $ 551,264 $ 100,000 $ 1,400,000 $ - 2008-17 YL Blvd Booster Station $ 5,400,000 $ 100,000 $ 5,500,000 $ 4,574 $ 150,000 $ 500,000 $ 4,850,000 2005-22 Elk Mountain Site Imp $ 300,000 $ 490,000 $ 790,000 $ - $ 30,000 $ 760,000 $ - 2009-21 Non-Pot Water Study for Irrig. Use $ 225,000 $ (75,000) $ 150,000 $ 37,726 $ 70,000 $ 50,000 $ - 2009-22 South & West Well Project $ 9,100,000 $ (1,100,000) $ 8,000,000 $ 8,289 $ 10,000 $ 1,000,000 $ 7,000,000 2009-15 Computerized Maint&Mgmt System $ 300,000 $ - $ 300,000 $ 33,670 $ 200,000 $ 65,000 $ - 2010-11 Fairmont Res., BPS & Site Imp $ 1,885,000 $ 4,115,000 $ 6,000,000 $ 36,184 $ 15,000 $ 450,000 $ 5,500,000 2010-02 Lakeview Grade Separation $ - $ 700,000 $ 700,000 $ 45,000 $ 155,000 $ 500,000 2010-12 2012 Pipeline Project $ 2,162,000 $ 393,000 $ 2,555,000 $ - $ - $ - $ 2,555,000 2010-02 Lakeview Fencing $ 50,000 $ - $ 50,000 $ - $ - $ - $ 50,000 New Green Crest Dr. Sewer Lift Stn Upgr $ - $ 175,000 $ 175,000 $ - $ - $ 175,000 $ - New Press. Reg. Stations Upgrade $ - $ 1,000,000 $ 1,000,000 $ - $ - $ 500,000 $ 500,000 New Disinf. Bstr. Sta. at Hidden Hills Res $ - $ 200,000 $ 200,000 $ - $ - $ 200,000 New GIS--Phase 2 $ - $ - $ 133,000 $ - $ - $ 76,000 $ 57,000 TOTAL $ 29,212,000 $ 7,898,000 $ 37,243,000 $ 1,401,606 $ 2,915,000 $ 11,786,000 $ 21,212,000 Capital Improvements Program for FY 2011/12 Highland Booster Pump Station Upgrade Project Total Project Budget: $6,100,000 Proposed FY 11/12 Budget: $3,635,000 The new, 18,000-gpm-capacity pump station will complete construction in FY 2011/12. The high-capacity pump station will make it possible to deliver up to 70 percent more groundwater to the higher zones of the District than with the pump station being replaced. Ohio St. and Oriente Dr. Pipeline Replacement Project Total Project Budget: $1,600,000 Proposed FY 11/12 Budget: $1,261,000 Construction of approximately 4,900-ft. of 8- to 16-inch diameter pipeline, valves, hydrants and appurtentance in Ohio Street and Oriente Drive, will be completed this FY, replacing 60-70 year old waterlines. These pipelines will be sized to serve the local area as well as to deliver water to the planned Yorba Linda Booster Station. 2010 Waterline Replacement Project Total Project Budget: $1,990,000 Proposed FY 11/12 Budget: $1,770,000 The project consists of replacing old waterlines and appurtenances in eight locations, ranging from 200 to 3,000 feet, with a total replacement length of approximately 6,700 feet. These locations were identified in the Asset Management Plan and the Capital Improvement Plan as requiring near-term replacement due to age and condition of the pipelines. The project is divided into two phases for construction, with both planned to be completed by the end of FY 11/12. Well No. 20 Project Total Project Budget: $2,000,000 Proposed FY 11/12 Budget: $1,349,000 Well drilling and test pumping were completed in early 2010 to determine the safe yield of the planned new Well No 20. Based on that information, design of the above-grade well facilities was completed in FY 10/11. Construction of the well facilities will be completed in IFY1 1/12, to provide new groundwater production to replace older wells, and to increase the District's local water resource production capabilities. Yorba Linda Blvd Booster Pump Station and Pipeline Project Total Project Budget: $5,500,000 Proposed FY 11/12 Budget: $500,000 The project consists of replacing the existing Palm Avenue Booster Pump Station with a three- pump 5,000-gpm capacity new pump station at Gun Club Road and Yorba Linda Blvd. Work will also include 4,700 feet of 20-inch pipeline and other improvements. The project will make is possible to deliver more groundwater to the easterly portion of the District's service area. Design work will be completed in FY 11/12. Construction may begin in late FY 11/12 and will be complete by early FY 13/14. Projected costs in FY 12/13 and FY 13/14 are $4,250,000 and $595,000, respectively. Elk Mountain Reservoir Site Improvements Total Project Budget: $790,000 Proposed FY 11/12 Budget: $760,000 Design and construction of practice fields for use by local neighborhood groups is planned for completion in FY 11/12 at the District's Elk Mountain Reservoir Site. Partial funding was provided as a condition of development by a local developer. Non-potable Water Study for Irrigation Use Total Project Budget: $150,000 Proposed FY 11/12 Budget: $42,000 A study is nearing completion, evaluating the feasibility of constructing a small-scale facility to treat wastewater from local sewers and use the treated and disinfected water for irrigation of local golf courses, parks, greenbelts, and other landscaped areas. The study, half-funded by a state grant, will be completed in early FY 11/12. If the study findings are promising, a more detailed study and preliminary design report may follow, subject to Board approval. South and West Well Project Total Project Budget: $8,000,000 Proposed FY 11/12 Budget: $1,000,000 Work has been initiated, investigating potential well sites south and west of the District's existing Richfield Wellfield. If findings are positive, drilling of Well No. 21 is planned for FY 11/12, along with design of above-grade facilities, at an estimated cost of $1 million. Planned for FY 12/13 is construction of Well No. 21 and a transmission pipeline, at an estimated cost of $2 million. Proposed for FY 13/14 and 14/15 is acquisition of two additional wells sites, well drilling and construction, pipelines and appurtenances, at an estimated cost of approximately $5 million. It is anticipated that the project will include three wells to replace and augment existing wells, and to increase the District's groundwater pumping capacity, at a total project cost of approximately $8 million. Computerized Maintenance and Management System (CMMS) Total Project Budget: $300,000 Proposed FY 11/12 Budget: $66,000 This project consists of a software-based maintenance and management system for improved tracking of work performed on the District's infrastructure. The system integrates directly with the District's GIS and financial information systems to produce reports on true costs of service and to assist District staff on future infrastructure planning and budgeting. Completion is scheduled for FY 11/12. Fairmont Reservoir, Pump Station and Site Improvements Project Total Project Budget: $6,000,000 Proposed FY 11/12 Budget: $450,000 The project is the refurbishment and upgrading of the Fairmont site. The existing 37-year old booster station will be demolished and its two booster pumps will be replaced by six, with two each pumping to three different pressure zones. A new building will be constructed to house the pumps, as well as facilities for operations and maintenance and a SCADA control center. Facilities will also be provided for equipment and material storage. The project will also include refurbishment of the Fairmont Reservoir, with new valves and other appurtenances. Part of the cost of the improvements will be offset by developer-provided funding. It is anticipated that $450,000 in planning and design work will occur in FY 11/12, followed by an estimated $5.5 million in construction in FY 12/13 and 13/14. Lakeview Grade Separation Project Total Project Budget: $700,000 Proposed FY 11/12 Budget: $155,000 The Orange County Transportation Authority (OCTA) is the lead agency for a planned Lakeview Avenue bridge over Orangethorpe Avenue and the adjacent BNSF Railroad tracks. As part of the project, it will be necessary to replace and relocate the District's water lines currently in Lakeview Avenue through the project area. The District has been in discussions with OCTA as to how much of the total cost of the relocation and replacement of its waterlines and appurtenances the District must pay for, estimated at a cost in the range of $1 million. During this process, the District has been pursuing means to minimize the project cost it will bear, through work with legal counsel, land surveyors, and title companies. It is anticipated that OCTA and the District will reach a decision on the project cost share to be borne by each by early in FY 11/12, and that construction of the pipeline relocation work will begin late in FY 11/12, with completion in FY 12/13. Green Crest Dr Sewer Lift Station Upgrade Project Total Project Budget: $175,000 Proposed FY 11/12 Budget: $175,000 As part of the Sewer Transfer Agreement with the City of Yorba Linda, the District is taking over operation and maintenance of the existing sewer lift station, which serves eight homes on Green Crest Drive. The agreement includes transfer of $175,000 from the City for O&M of the lift station, which will be used for upgrades. The upgrade work will include new SCADA and control elements for the lift station, which will be tied into the District's central control and monitoring system at District Headquarters. Pressure Regulating Station Upgrade Project Total Project Budget: $1,000,000 Proposed FY 11/12 Budget: $500,000 The District owns and maintains 37 pressure reducing stations for its six pressure zones in the water system. The stations are equipped with combination pressure reducing/pressure sustaining valves, with many of the stations having lead valves and one or two additional valves and pressure relief valves and other appurtenances. The stations are located below ground, in streets and parkways, some of which are 30 to 40 years old. A plan is being developed to refurbish and upgrade the stations, starting with those determined to be most in need of work. Budgeted in FY 11/12 and 12/13 is $500,000 each for design and refurbishment of pressure regulating stations. Geographical Information System (GIS) Implementation Project-Phase 2 Total Project Budget: $133,000 Proposed FY 11/12 Budget: $76,000 Final tasks in the implementation of a digital information database and analytical geographical information system (GIS) containing the water and sewer infrastructure, parcel and street information linked to the customer service and operational database systems. Phase 2 work will integrate applications such as CMMS, the hydraulic model, valve-exercising program and hydrant-flushing program. Anticipate completion next year, with a budget in FY 12/13 of $57,000. 6/8/2011 -1-;,Ywba Linda Water Diarict ELK MOUNTAIN SITE DEVELOPMENT PROJECT Date: June 1, 2011 lid :fiat'"-?i`S. 6W r :t - ~y « ci 1, • ~M ! - y;~a 1 6/8/2011 • Per 1999 Development Agreement, SWEPI to provide park improvements at Elk Mtn. site. • As condition of dispute settlement in Nov. 2005, $200,000 provided by SWEPI for YLWD to provide Elk Mtn. site improvements (Current fund value: $233,000) • Staff conducts prelim meetings with local sports groups for Youth Soccer and T-ball and gets favorable response • In July 2010, staff prepares preliminary development alternatives study, including turf alternatives and costs t 4 PROJECT BACKGROUND continued • Staff study looks at modest development: grass field (natural or artificial), grading, drainage, irrigation, fencing, and parking lot for 10 cars. • Natural-grass field alternative: $271,000 • Artificial-turf field alternative: $738,000 • PEO Committee recommends that staff continue to pursue City's participation in project 2 6/8/2011 • Staff meets with City (2 occasions) to invite participation in project and is informed that City is not in a position to participate • Staff solicits proposals from three Landscape Architectural firms for preliminary alternatives study, pros and cons, and costs. • Staff selects Webb Associates for study for $19,000 4. PROJECT BACKGROUND continued • From study, Board committee recommends basic (minimum) development plan maximizing artificial turf field (54,000 sf) with 20-car parking lot • Staff issues RFP for design and construction-phase services for the above approach and receives four proposals • Staff evaluates proposals and recommends award to Albert A. Webb Associates for $93,512 for design and construction-phase services 3 6/8/2011 SUMMARY OF DESIGN PROPOSALS ALBERT A. 9.60 1 $93,512 806 WEBB ASSOC. RBF 8.68 2 $145,708 915 CONSULTING TETRA TECH 8.56 3 $108,712 847 TCLA, Inc. 8.43 4 $151,870 1446 I ~Rn n yY " y { Y i 9~, / y I 4 6/8/2011 III : ELK MOUNTAIN YOUTH PRACTICE FIELD 22 Preliminary Study & Staff Costs to Date: $35,000 Proposed Design & Const-Phase Services Cost: 95,000 Estimated Construction Cost: 7501000 Estimated Staff Costs thru Construction: 20,000 Estimated Total Cost through Construction: $900,000 5 6/8/2011 • The District providing for • Higher cost of construction the local community than original contribution • The District fulfilling a goal • On-going annual to build a park maintenance costs for the • Setting an example of turf and the site water conservation • Increased liability and • The Youth teams have a vandalism potential superior practice field • Increased traffic and noise surface for the local neighbors IREMENTS • SYNTHETIC TURF ❑ Weekly Pick up debris to preserve materials ❑ Monthly Groom the turf per manufacture's specs ❑ Annual Replace any infill material and broom ❑ Every 10 yrs+/............... Replace artificial turf field ($300k • PARKING LOT ❑ Periodic slurry seal..... Contract with paving contractor to seal • GENERALGROUNDS ❑ Security Regularly check reservoir hatches ❑ Weed abatement........... Remove weeds and treat annually 6 6/8/2011 - c, • The District will be required to manage and monitor the field activities (including Youth-team-provided portable toilets) • The District will need to assign coordination & scheduling responsibilities to a Staff person to work with the Youth Teams • The District will need to create an agreement with indemnification to minimize potential injury and other claims • The Decision for the District is: Are the benefits greater than the potential risks for providing a Youth Practice Field at the Elk Mountain Reservoir site _J!0'R THE BOARD • Direct staff to step back and reconsider less-costly natural grass field concept, OR • Direct staff to proceed with artificial-turf field concept and authorize issuance of PSA for design and construction-phase services with Webb Associates for $93,512 (or an alternative firm), O • Direct staff to cancel project due to greater-than- anticipated cost. 7 6/8/2011 - =I a Water District ' Meter Replacement Program 2,011 MEL EASTERN SERVICE AREA The area east of Locke Ranch, known as the Eastern Service Area, contains approximately 9,200 services consisting of landscape, commercial, and residential meters. ~ R _4 1 6/8/2011 INSTALLATION DATES ig8i-i996 The Badger Recordall meters used in the Eastern Service Area, were installed between ig8i and 1996. Over 40% of the meters are greater than 20 years old. These meters have been in service much longer than their expected lifespan, by both AWWA and the manufacturer's standards and have registered far more gallons than described on the AWWA 0700-02 standard. A BADGER RECORDALL METERS The Badger Recordall meter were used during the build-out of the Eastern Service Area. At the time of installation, Badger's accuracy warranty on the new meters was 5 years from the date of shipment E ~ 3. or registration of 750,000 gallons, 7 4 whichever occurred first (AWWA Standard C700-02). Badger's repaired meter accuracy warranty was 15 years or 2,500,000 gallons, whichever occurred first (AWWA M6 manual). 2 6/8/2011 Meter Accuracy During periodic testing we discovered that many of these meters were registering below AWWA standards. (AWWA accuracy standard is 98.5%- 101.5%). The industry standard on meter accuracy loss is .33% per year. As the meter ages, this percentage increases. SENSUS Distributed by AQUA-METRIC -The Sensus product is more expensive than competitive solutions that offer more features. -Existing Sensus product in the ground is failing and not performing as expected, costing the District time and money. -We have experienced delays with warranty returns and other servicing issues with Aqua-Metric. 3 6/8/2011 REQUEST FOR PROPOSAL On April z8, 2oii, as part of the meter replacement project, the District released a Request for Proposal to the 4 industry leaders in metering. We have received and reviewed the proposals from each vendor and have determined that a mobile or `drive-by' solution would be the most efficient for the topography of the area. 4 Recommended Changes to the Reserve Policy *No overall change in total reserve dollars *Add a new reserve -Maintenance Reserve - Funding to come out of Capital Replacement -Allows for a decrease to operating expense for contingency line items •Reclassify Employee Liability Reserve as "Designated"