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HomeMy WebLinkAbout2011-06-21 - Executive-Administrative-Organizational Committee Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT EXEC-ADMIN-ORGANIZATIONAL COMMITTEE MEETING Tuesday, June 21, 2011, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director Michael J. Beverage, Chair Ken Vecchiarelli, General Manager Director Phil Hawkins 1. PUBLIC COMMENTS Any individual wishing to address the committee is requested to identify themselves and state the matter on which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 2. ACTION CALENDAR This portion of the agenda is for items where staff presentations and committee discussions are needed prior to formal committee action. 2.1. Amendment of Board Rules for Organization and Procedure Recommendation: That the Committee recommend the Board adopt Resolution No. 11-XX Amending the Board of Directors Rules for Organization and Procedure and rescinding Resolution No. 07-06. 3. DISCUSSION ITEMS This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda may also include items for information only. 3.1. Committee Asssignments for Strategic Plan Initiatives 3.2. Elk Mountain Joint Use Consideration 3.3. Orange County Grand Jury Compensation Survey of Water and Sanitation Districts 3.4. Board Communications Allowance 3.5. Draft Facilities Use Policy and Agreement Recommendation: That the Committee consider the Draft Facilities Use Policy and Agreement and provide further direction and input to staff. Staff further recommends drafting a Resolution which formally establishes the Board Policy for Joint Use of District Facilities. 3.6. OCSD Board Respresentation 3.7. Grant Proposals 3.8. Legal Counsel Attendance at Board of Directors Meetings 3.9. General Counsel's Monthly Summary Report 3.10. Future Agenda Items and Staff Tasks 4. ADJOURNMENT 4.1. The next regular meeting of the Executive-Administrative-Organizational Committee will be held July 19, 2011 at 4:00 p.m. Items Distributed to the Committee 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 Committee 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. 2.1 AGENDA REPORT Meeting Date: June 21, 2011 Budgeted: N/A To: Executive-Administrative- Organizational Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: No Prepared By: Cindy Botts, Management CEQA Compliance: N/A Analyst Subject: Amendment of Board Rules for Organization and Procedure SUMMARY: It is the purpose of the Board of Directors Rules for Organization and Procedure to compile, in writing, the rules, regulations, and procedures as an informational guide for the conduct of meetings of the Board of Directors. These procedures are established in the Water Code, various sections of the Government Code and the Brown Act. STAFF RECOMMENDATION: That the Committee recommend the Board adopt Resolution No. 11-XX Amending the Board of Directors Rules for Organization and Procedure and rescinding Resolution No. 07-06. DISCUSSION: The Board of Directors Rules for Organization and Procedure were originally adopted in 1997, with minor revisions made in 2007. The Executive-Administrative-Organizational Committee has asked staff to add a number of Joint Committee meetings to the Standing Committee meetings of the Board of Directors as follows: . Joint Committee Meeting with MWDOC and OCWD . Joint Committee Meeting with the City of Yorba Linda . Joint Committee Meeting with the City of Placentia Items still left for discussion and determination for each Joint Committee Meeting, include which Board member or members will attend the meetings, the regular meeting time, place and frequency. PRIOR RELEVANT BOARD ACTION(S): Board of Directors Rules for Organization and Procedure were formally established and adopted by Resolution No. 97-01 and were last amended by Resolution 07-16. ATTACHMENTS: Name: Description: Type: Resolution No. 11-XX Resolution 11-XX Backup Material BOD Rules for Organization and Procedure.doc Board of Directors Rules and Procedures Revised 061711.doc Amended Rules Backup Material RESOLUTION NO. 11-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING BOARD OF DIRECTORS RULES FOR ORGANIZATION AND PROCEDURE AND RESCINDING RESOLUTION NO. 07-16 WHEREAS, the Yorba Linda Water District was formed pursuant to Division 12 of the Water Code of the State of California; and WHEREAS, Section 30530 of the Water Code provides that the Board shall establish rules for its proceedings; and WHEREAS, such rules for proceedings were formerly established and adopted by Resolution No. 07-16; and WHEREAS, it is the desire of the Board of Directors to amend these rules. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. The Board of Directors does hereby adopt "Rules for Organization and Procedure" as attached hereto and by this reference incorporated herein. Section 2. The "Rules of Organization and Procedure" of the Board of Directors may be changed at any time by Resolution of the Board. Section 3. The "Rules for Organization and Procedure" shall take effect immediately upon adoption by the Board of Directors and that Resolution No. 07-16 is hereby immediately rescinded. PASSED AND ADOPTED this day of 2011 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Michael J. Beverage, President Yorba Linda Water District Resolution No. 11-XX Amending Board of Directors Rules for Organization and Procedure 1 ATTEST: Ken Vecchiarelli, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman, Behrens & Tague, LLP Resolution No. 11-XX Amending Board of Directors Rules for Organization and Procedure 2 Yorba Linda Water District Board of Directors Rules for Organization and Procedure Section 1. Purpose. It is the policy of the Yorba Linda Water District ("District") that all meetings of the Board of Directors of the District ("Board") shall be open and public and all persons are invited to attend. The Board provides these Rules for Organization and Procedure for the purpose of informing its own members, District staff, consultants and the general public regarding the laws, rules and procedures that govern the conduct of meetings held by the Board. Section 2. Board Officers and Other Officers of the District. 2.1 A President of the Board and a Vice President shall be elected annually at the District's reorganization meeting held at the first regular meeting of the Board in December of every year. The President shall assume the chair of the Presiding Officer immediately after election. 2.2 The President shall make Committee assignments, subject to consent of the Board, annually by the first meeting of the Board of Director's to be held in January of the subsequent year. 2.3 If the President is absent from a meeting of the Board, the Vice-President shall serve as the Presiding Officer. If both the President and Vice-President are absent, the Secretary shall take the chair so that the Directors present may elect a Presiding Officer. Upon late arrival of the President or Vice-President at the meeting, the chair shall be relinquished at the first opportunity not disruptive to the conduct of business. Revised 06/17/11 1 2.4 In the event the President becomes incapacitated or is otherwise unable to act in his or her official capacity, as determined by a majority of the Board, the Vice President shall serve until the incapacity is cured or relieved. In the event the Vice President becomes incapacitated or is otherwise unable to act in his or her official capacity, as determined by a majority of the Board, an interim Vice President shall be elected at the District's next regular meeting of the Board to serve until the incapacity is cured or relieved. 2.5 The Presiding Officer, established pursuant to these Rules, shall conduct the proceedings of the Board. 2.6 The Presiding Officer shall sign all ordinances, resolutions and contract documents approved and adopted by the Board. 2.7 A General Manager shall be appointed by a majority vote of the Board and serve at the pleasure of the Board. The General Manager shall perform all duties set forth in the County Water Districts Law (Water Code, § 30000 et seq.), set forth in these Rules for Organization and Procedures, set forth in the General Manager's contract with the District, imposed by the Board and in accordance with governing laws and regulations. 2.8 A Secretary and Assistant Secretary shall be appointed by majority vote of the Board and serve at the pleasure of the Board. The Secretary, or the Assistant Secretary in the absence of the Secretary, shall attest all ordinances and resolutions approved and adopted by the Board, countersign all contract documents approved and adopted by the Board of Directors, prepare the Minutes of each meeting held by the Board, and perform all duties set forth in the County Water Districts Law (Water Code, § 30000 et seq.), set Revised 06/17/11 2 forth in these Rules for Organization and Procedure, imposed by the Board and in accordance with governing laws and regulations. 2.9 A Treasurer shall be appointed by majority vote of the Board and serve at the pleasure of the Board. The Treasurer shall perform all duties set forth in the County Water Districts Law (Water Code, § 30000 et seq.), set forth in these Rules for Organization and Procedure, imposed by the Board and in accordance with governing laws and regulations. 2.10 A member of the Board shall not serve as the General Manager, Secretary, Assistant Secretary or Treasurer. The same person may be appointed as General Manager and Secretary or Secretary and Treasurer. There shall be no additional compensation for also serving as Secretary, Assistant Secretary or Treasurer if the individual so serving is an employee of the District. 2.11 The Board of Directors of the Yorba Linda Water District shall serve as Officers of the Yorba Linda Water District Public Financing Corporation. The officers of the Corporation shall be updated annually at the District's reorganization meeting held at the first regular meeting of the Board. The person serving as the President of the Governing Board of the District shall serve as the President of the Corporation. The person serving as Vice President of the Governing Board of the District shall serve as Vice President of the Corporation. The person serving as Board Secretary to the Governing Board of the District shall serve as Secretary of the Corporation. The person serving as the Treasurer of the District shall serve as Treasurer of the Corporation. Revised 06/17/11 3 Section 3. Regular Meetings of the Board of Directors. All regular meetings shall be held at the time and place so designated by resolution adopted by the Board. Section 4. Special Meetings of the Board of Directors. The manner, procedure and agenda requirements for special meetings shall comply with Government Code section 54956. Section 5. Quorum. Three (3) of the five (5) Directors elected or appointed to the Board shall constitute a quorum for any meeting of the Board. Irrespective of the number of Board members constituting a quorum for a particular meeting, a majority vote of the Board shall consist of at least three votes. Section 6. Board Business. 6.1 Any matter which is to be considered for approval or adoption by the Board at the meeting must be submitted to the Board as part of an agenda according to Government Code section 54950 et seq. All ordinances, resolutions and contracts shall be reviewed by legal counsel and approved as to form and legality prior to submission for consideration by the Board. 6.2 The Secretary of the District shall, under the direction of the General Manager, prepare an agenda of such matters according to Section 7 herein, entitled "Order of Business," including a description of the items to be considered or discussed and, where deemed appropriate by the General Manager, a staff recommendation for each item. Revised 06/17/11 4 6.3 A copy of the agenda for every meeting of the Board shall be posted at least 72 hours prior to the meeting on a bulletin board outside the District offices. Once posted, copies of the complete agenda and supporting materials shall be available for public inspection during business hours at the District offices and the District's website. 6.4 Members of the Board may attend District Board and Committee meetings via teleconference provided the meeting has been duly noticed as a teleconference meeting in compliance with requirements of the Brown Act. Duly noticed teleconference locations may be outside the District's jurisdictional boundaries, but for purposes of establishing a quorum of the Board, at least three (3) Directors must be participating in the meeting from within the District's jurisdictional boundaries. A Director is entitled to participate fully in the meeting and vote from a teleconference location, and all votes shall be taken by roll call. 6.5 A copy of the agenda for all special meetings of the Board shall be posted at the District offices at least 24 hours in advance of the special meeting. 6.6 A copy of each agenda for a meeting of the Board shall be mailed to members of the public so requesting them in writing. Any member of the public requesting a copy of a complete agenda and supporting materials shall be charged, in advance, for reproduction costs plus mailing expenses. Exceptions are public agencies, members of the public who request a copy of the agenda without supporting materials and individuals requesting a copy of an agenda, with or without supporting materials, that contains a specific matter involving that individual as a party. Revised 06/17/11 5 6.7 The Board may take action on items not appearing on the posted agenda under the following circumstances: 6.7.1 Upon determination by a majority vote of the Board that an emergency, work stoppage or crippling disaster exists that impair public health and/or safety. 6.7.2 Upon determination by a two-thirds vote of the Board, or by all Directors if only three Directors are present, that a matter came to the attention of the District subsequent to posting the agenda that needs immediate action by the Board. 6.7.3 When an item was posted on the agenda of, and was continued from, a meeting held not more than five (5) days earlier. Section 7. Order of Business. 7.1 Upon convening the meeting at the hour set on the date of each meeting, the members of the Board, the Secretary and General Manager of the District shall take their regular stations in the Board Meeting Room, and the business of the Board shall be taken up for consideration. The Presiding Officer shall immediately call the Board to order and lead in the Pledge of Allegiance to the flag of the United States of America. 7.2 Before proceeding with the business of the Board, the Secretary shall call the roll of the Directors. The Secretary shall enter the names of all Directors, Officers, staff members and visitors (if known) present in the Minutes of the meeting. Revised 06/17/11 6 7.3 If a quorum is present, the Secretary shall so advise the Presiding Officer. If a quorum is not present, the Secretary may adjourn the meeting to a time certain for the purpose of obtaining a quorum. Any such reconvened regular meeting shall not constitute a special meeting. In the event a regular or special meeting of the Board is adjourned to a time and date certain, the Secretary shall post a notice of adjournment on the bulletin board outside the District offices within 24 hours of such adjournment. 7.4 The Presiding Officer may, on his or her own initiative or at the request of any two Directors, take any item of business out of order, either as to the general order of business or as to the specific agenda as the Secretary has prepared it. 7.5 The Order of Business taken up for consideration by the Board is generally organized so that high priority matters are addressed at the beginning of the meeting, and is generally in the following sequence: • Introductions and Presentations • Public Hearings • Consent Calendar • Closed Session(s) • Action Calendar • Discussion Calendar • Informational reports and other business • Adjournment Revised 06/17/11 7 7.6 The Public Hearings portion of the agenda, if any, will be held at the time specified in the legal notice advertising such hearing. In general, the order of procedure for a public hearing is as follows: • Opening of hearing by Presiding Officer • Verification of Notice of Hearing provided by Secretary • Reports by General Manager, staff and/or consultant • Receipt of communications written by public • Comments from the public speaking in favor and/or against the issue • Questions to staff and discussion by Board • General Manager's recommendations to approve, modify, continue, or deny • Continue or close public hearing • Consideration of action by the Board 7.7 The Consent Calendar portion of the agenda shall be consideration, in a single action, of items determined by the Secretary to be routine matters, status reports or documents implementing previous Board instructions. If a Director has a question or wishes to discuss a Consent Calendar item, they may do so without formally removing the item from the Consent Calendar. If, after such discussion, a Director, staff member or member of the public has a question or wishes to address a Consent Calendar item further, they may request that the item be removed for further discussion. The Presiding Officer should immediately grant such requests and transfer the removed item to the Action Calendar for later discussion. Items removed from the Consent Calendar for discussion shall be acted upon separately. All items remaining on the Consent Calendar will be considered for approval by a single motion. Examples of matters appearing on the Consent Calendar may include, but are not limited to: Revised 06/17/11 8 • Minutes of previous Board meetings • Approval to pay warrants • Routine Environmental Assessments • Approval of routine Terms and Conditions for Water and/or Sewer Service • Approval of Change Orders with a dollar value within the General Manager's authority consistent with the approved purchasing policy • Approval of Contracts for projects identified in the Adopted Budget • Final Acceptance of Facilities • Disposition of Liability Claims • Other Routine Administrative matters 7.8 The Action Calendar portion of the agenda shall include items requiring staff presentation and/or Board discussion prior to formal Board action. Items should generally be listed in order of priority and with items of a similar nature grouped together. Items may be addressed out of order upon request and with the consent of the Presiding Officer. 7.9 The Discussion Calendar shall include matters that do not require Board action or that cannot reasonably be expected to result in Board action at that meeting. Matters appropriate for the Discussion Calendar include technical presentations to the Board, review of drafts of proposed policies and, in general, items for which District staff seeks the advice and counsel of the Board. When time permits, the Board believes the District's best interests are served by discussing more complex matters at one meeting and considering formal action on them at a subsequent meeting. Revised 06/17/11 9 7.10 The "Informational reports and other business" portion of the agenda provides an opportunity for the presentation of reports by the General Manager, reports from Standing and Special Committees, reports by Directors who have attended outside meetings, and general comments by Directors. It also provides an opportunity for the Board to schedule future Committee meetings and schedule assignments on the Board of Directors activity calendar. 7.11 Closed Sessions are strictly limited to the open meeting exceptions defined in the Brown Act. Section 8. Ordinances, Resolutions and Motions. 8.1 The Board shall act only by Ordinance, Resolution or Motion. The Presiding Officer shall state each matter as it is presented for consideration by the Board and shall announce each decision of the Board. 8.2 Ordinances are an authoritative decree or municipal regulation of the District. Ordinances shall relate to no more than one subject, which shall be clearly expressed in the title of the ordinance. No ordinance, or section thereof, shall be amended or repealed unless the new ordinance contains the title of the ordinance or section amended or repealed. When applicable, ordinances shall be identified to the Board as replacements to existing ordinances or sections thereof. Ordinances must be moved and seconded and shall be adopted only by a roll call vote. The Secretary shall record the names of all Directors and identify them as Aye, No, Abstain, or Absent on each adopted ordinance. All ordinances shall be signed by the Revised 06/17/11 10 Presiding Officer and attested by the Secretary. Ordinances shall be in full force and effect upon adoption unless otherwise provided by law, and the Secretary shall be responsible for compliance with any and all legal requirements for publication of the ordinance. 8.3 Resolutions are a formal expression of opinion, will or intent of the Board. Resolutions must be moved and seconded and shall be adopted only by a roll call vote. The Secretary shall record names of all Directors and identify them as Aye, No, Abstain, or, Absent on each adopted resolution. All resolutions shall be signed by the Presiding Officer and attested by the Secretary. 8.4 Motions are proposals, made by a Director during a Board meeting, for action, inclination of the mind or will, or a formal proposal made in a deliberative manner by the Board. Every motion considered by the Board must be moved by a Director, seconded by another Director and is subject to debate. Section 9. Guidelines for Discussion. These guidelines are intended primarily for those situations where discussion of an issue is taken up with considerable enthusiasm by several directors and/or members of the general public, and it is necessary to formalize the meeting so that each Director, in due course, may be heard. 9.1 The Presiding Officer will decide, subject to a question of order by any Director, the degree of enforcement of these guidelines at any time during any meeting. Revised 06/17/11 11 9.2 The Board prefers a flexible form of meeting, believing that this enhances the decision- making process and therefore does not conduct its meetings with formal "rules of order" or parliamentary procedure. The Presiding Officer for each meeting has the responsibility to preserve order and decorum, If, at any time, a Director believes order is not being maintained or that procedures being followed are not adequate for the decision-making process at hand, he or she should call this fact to the attention of the Presiding Officer and request corrective action. If the corrective action taken by the Presiding Officer is not satisfactory, a motion for specific corrective action may be made to the Board. In that event, a majority vote of the Board will determine the action to be taken. 9.3 A Director is disqualified from participating in the decision-making process if a financial interest in an item before the Board might interfere with the performance of duties in an impartial manner free from bias, as defined in the District's Conflict of Interest Code. If grounds for disqualification exist, the Director at issue should announce prior to consideration of the item that he or she has a conflict of interest and should leave the room until after the discussion, vote, and any other disposition of the matter is concluded. The Director shall not be counted toward achieving a quorum while the item is discussed. This rule applies when the item that gives rise to the disqualification is on the consent calendar except the Director at issue is not required to leave the room. (Gov. Code, § 87105(a)(3); 2 CCR 18702.5(d)(1)). Any Director unsure about whether a conflict of interest exists may request an opinion from the District's Legal Counsel. 9.4 The Presiding Officer may move, second or debate motions from the chair, subject only to such limitations of debate as may be imposed on all Directors, and shall not be Revised 06/17/11 12 deprived of any of the rights and privileges of a Director by serving as the Presiding Officer. The Presiding Officer may vote on all questions or motions before the Board, with his or her name being called last in a roll call vote. 9.5 Any Director desiring to speak shall first address the chair. Upon recognition by the Presiding Officer, the Director may speak freely with respect to the matter then before the Board but should confine his or her comments to the subject under discussion. Any Director, once recognized, should not be interrupted except by a call to order from the Presiding Officer. If a Director is called to order, he or she should cease speaking until the question of order is determined; if determined to be in order, they may proceed. 9.6 Any Director moving the adoption or approval of a matter may call for the question. 9.7 True motions to reconsider any Board action must be made at the same meeting at which the original action was taken; however, any Director may make any other type of motion at any meeting. 9.8 All motions will be adopted by voice vote unless otherwise required by law. The Secretary shall record in the Minutes any dissenting and abstaining votes, or disqualification from voting due to a conflict of interest. 9.9 Unless a Director declares a conflict of interest or abstains, silence will be recorded in the Minutes as an affirmative vote. Revised 06/17/11 13 9.10 The Secretary will enter into the Minutes for each meeting a record of all Board actions and a summary of the discussion on each matter considered by the Board. 9.11 Any person desiring to speak shall first address the chair. Upon recognition by the Presiding Officer, the speaker shall state his or her name, representation/affiliation and the matter on which he or she wishes to comment. If the matter relates to an item on the current agenda, the Presiding Officer shall recognize the person and invite their comment when the item is considered. If the matter does not relate to an item on the current agenda, the Presiding Officer shall determine whether and when to allow the comment. Comments are limited to matters of public interest within the jurisdiction of the District, and comments must be no more than five (5) minutes in length unless a time extension is granted by the Presiding Officer. No action will be taken on matters not appearing on the posted agenda for that meeting, although Directors may respond briefly to public comments. 9.12 In the event any person or group of people makes personal, impertinent or slanderous remarks or becomes boisterous while attending a District Board meeting, the Presiding Officer shall call for order. If the person or group refuses to comply with the Presiding Officer's request for order, the Presiding Officer may declare a recess and summon a law enforcement officer to remove the person(s) from the Board of Directors Meeting Room. Once the Presiding Officer takes this action, permission for such person(s) to remain at the meeting requires a motion approved by a majority vote of the Board. When, in the judgment of the Presiding Officer, order is restored, the meeting will reconvene and continue with the Board's business. Revised 06/17/11 14 Section 10. Standing Committees. 10.1 Internal Standing Committees of the Board of Directors are long term Committees that meet on a regular basis to review and consider specific areas and functions of the District's business. The Internal Standing Committees include: 1. Executive-Administrative-Organizational 2. Personnel-Risk Management 3. Finance-Accounting 4. Planning-Engineering-Operations 5. Public Affairs-Communications-Technology 10.2 Each Internal Standing Committee shall have two Directors and each Director shall be assigned to a minimum of two Internal Standing Committees. 10.3 Each Internal Standing Committee shall meet on a monthly basis at a minimum, unless the Chair assigned to that particular Internal Standing Committee, in consultation with the General Manager, believes there are not enough issues to discuss and that the best interests of the District would be served by continuing the meeting for one month. 10.4 Joint Agency Standing Committees of the Board of Directors also meet on a regular basis and were established to foster a stronger working relationship between the District and other governmental agencies. The Joint Agency Standing Committees include: 1. MWDOC and OCWD 2. City of Yorba Linda 3. City of Placentia Revised 06/17/11 15 10.5 Joint Agency Standing Committees shall meet on a bimonthly or quarterly basis, as needed, and as determined from time to time by the Board and the respective intergovernmental agency representatives. 10.6 Joint Agency Standing Committees shall have at least one, but no more than two Board Members, assigned by the Board President and approved by the Board. 10.7 In the event there is an absence or vacancy on any Standing Committee, the President shall assume the vacant position if the absence cannot be filled temporarily by another Board member or until a permanent appointment is made. Section 11. Special Committees. Special Committees shall be appointed by the President, unless otherwise directed by a majority vote of the Board. Section 12. Adjournment. A motion to adjourn must be moved by a Director and seconded by another Director, and it is subject to debate. No further business can be conducted after an affirmative vote to adjourn. Revised 06/17/11 16 ITEM NO. 3.1 AGENDA REPORT Meeting Date: June 21, 2011 Subject: Committee Asssignments for Strategic Plan Initiatives ATTACHMENTS: Name: Dosciiption: a ype: Appendix- Strategies and Action Plan revkrv.xlsx Committee Assignments for Strategic Plan intiatives Backup Material Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments Date Committee Impacts CP 1: Increase Brand Reco ition within the Communit Enhance Resources for Public Retain Public Include in PY2011/12 CP 1-A Public Information 8v Jul-11 Dec-11 Information PACT Information 8v Gov't Budget and proposed Governmental Affairs Affairs organizational Division Officer Specialist/ Interns changes Current Supplies and Services Budget total Develop a Public Public should be adequate Include in PY2011 / 12 CP 1-13 Relations Master Plan Jul-11 Jun-12 Information PACT with additional staff Budget and proposed with Measurable Goals Officer to assist in expenses completing program objectives. Have Board of Directors and YLWD Estimated 67% Staff Attend More Immediately BOD/GM/PIO/ increase in BOD total Include in /12 CP 1-C Local and Regional 2010 following Nov election - On-going Staff EAO salaries, benefits and Budget and d proposed Events and Inter- expenses expenses governmental Meetings Continue to Support Regional Training and Multi-Agency Adopt Joint Use CP 1-D Workgroups through On-going On-going General PRM None Facilities Agreement the Joint Use of the Manager in first quarter of FY Administration 2011/12 Building Effectively Use Broad Manage within Implement Audio Spectrum Public expanded Public Recording of YLWD CP 1-E On-going On-going Information PACT Information 8v Communication BOD Mtgs by Apr-11 Opportunities Officer Government Affairs and Video by Jul-11 Division Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments CP 2: Increase Public Awareness of Water and Wastewater Related Issues Provide Financial Include in PY2011 / 12 Incentives and Rebates Jul Additional $10,000 Budget and proposed CP 2-A for Water Use -11 On-going BOD/GM/PIO EAO for FY 11/12 expenses in PI/GA Efficiency Division Develop and Expand a Public Include in PY2011 / 12 CP 2-13 Youth Education Jul-11 On-going Information PACT Additional $14,500 Budget and proposed Program Officer for FY 11/12 expenses in PI/GA Division Consider Participation Explore and report on in the California Urban agency responsibility, CP 2-C Water Conservation Sep-11 Dec-11 GM EAO Assign Task to impacts and benefits Council's Best Management Analyst with recommendation Management Practices by Dec-11 Enhance the District's Board Budget Regional Water and impacts included in Include in / 12 CP 2-D Wastewater Industry On-going On-going BOD/GM/Staff EAO CP 1-C; Staff impacts Budget and d proposed expenses Participation minimal I I Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments Date Committee Impacts FR 1: Maintain Fiduciary Res onsibiliFinance Accounting Develop a Water: Included in Committee to FR 1-A Comprehensive Multi- Feb-11 Oct-11 Finance Director FA 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 FR 1-B Annual Financial Feb-11 Jun-11 Finance Director FA $900 in application Include Fees in FY fees 2011/12 Budget Report and Compete for Recognition by the Government Finance Officers Association Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments Revise the Water and Sewer Rules and Complete Study in House and General and FR 1-C Evaluate Fee Feb-11 Dec-11 Manager/ FA None Recommend Fees Schedules Regularly Finance Director Structure Update for for Proper Cost of Adoption December 20 011 Service Coverage Evaluate and Revise Revised Allocation FR 1-D the Sewer Fund Nov- 10 Mar- 11 Finance Director FA None included in FY Allocation 2011/12 Budget Include in Substantial Rate Maintain Commitment Increase Adopted in FR 1-E to Strong Debt Sept-09 Rate Quarterly Board of FA None Sept 2009 followed by Services Ratio Increase Financial Directors Pass Through Review Increase in Aug 2010 FR 2: Increase Reserve Fundin Latest Revisions Review the Reserve Finance Reviewed by Finance- FR 2-A Policy and Funding Apr- 11 Jul- 11 Director/Board FA None Accounting Levels Annually of Directors Committee for Board of Directors to Consider in Jun-11 Annual Review of Analyze the Asset Annual Review Plan to Determine if Management Plan to Dec Prior to Budget Engineering PEO None Asset Replacements FR 2-B Determine Future - 11 and CIP Manager are on Track or Asset Needs Update Conditions are Reassessed Annual Review Implement an of CIP Finance Rates, COP's and Approach to Ensure Financial FR 2-C Apr-11 Director/Board FA To Be Determined Other Capital Reserves are Needs Included of Directors Financing Options Responsibly Funded in Budget Preparation FR 3: Identi and Develop Additional Revenue Options Research and Obtain Gauge Cost FR 3-A Grant Funding On-going On-going General EAO Consider Part-time Effectiveness on Whenever Feasible Manager Grant Coordinator Project by Project Basis Review Opportunities Card Options to Earn "Cash Back" Discussed with FR 3-B on Operating Expense Jan-11 On-going Finance Director FA $200 in annual fees Finance-Accounting Committee in March - through Commercial Credit Card Accounts Add'1 research Required Manage Cash Flow to Track Opportunities FR 3-C Maximize Investment On-going On-going Finance Director FA Negligible transfer and Effectiveness Income fees with Quarterly Investment Reports Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments FR 4: Provide a Rate Structure that Promotes Water Use Efficienc Complete the Cost of Finance Board to Consider FR 4-A Service and Water Mar- 10 Mar- 12 Director/Board FA None Rate Structure Rates Study of Directors Alternatives in Oct 2011 Evaluate Equitable Board of Cost of Billing System Board to Consider Rate Structures that Directors/ Rate Structure FR 4-B promote Conservation Oct-11 Mar-12 General FA Revisions to Deter eed Alternatives in Oct and Efficiency Manager mined if Needed 2011 Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments Date Committee Impacts OE 1: O timize Use of Existin Technolo ies Identify the Current Functionality of Existing Technology IT Possible Costs for OR 1-A Jul-11 Sep-11 Director/EPIC PACT Additional Staff and Determine if it is Committee Training TED Being Utilized to Full Capacity Evaluate How Each EPIC Possible Costs for OR 1-13 Department Might Sep-11 Dec-11 Committee/ PACT Additional Staff Make Further Use of Executive Staff Training TED Existing Technology Provide, Support and Budget Preparation to OR 1-C Encourage Employee On-going On-going Executive Staff PRM Include Training and Professional Training Development OE 2: Address Inefficiencies Identified in the Self-Assessment Surve OR 2-A Identify Core Jul-11 Jun-12 EPIC Committee EAO None Inefficiencies OR 2-13 Develop Measurable Aug-11 Jun-12 EPIC Committee EAO None Productivity Goals Engage Employees in OE 2-C Methods of Addressing Sep-11 Jun-12 EPIC Committee EAO None Inefficiencies Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments OE 3: Consider Utilization of a Peer Review Survey Complete Cost Benefit Determine the Cost Analysis and Present OR 3-A Benefit Ratio of a Peer Jul-11 Sep-11 Management EAO None to Board of Directors Review Survey Analyst Prior to initiating Peer Review Establish a Team to Prepare for Focused OR 3-13 Determine the Focus Sep-11 Oct-11 EPIC Committee EAO $45,000 Peer Review of the Survey Results should OR 3-C Institute Guidelines for Sep-11 Dec-11 EPIC Committee EAO Reflect Cost Savings Areas to Be Addressed and Efficiency Increases Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments Date Committee Impacts SR 1: Work Toward Service Reliability and Efficiency Continue with Efforts to Annex District $110,000 included in Environmental Impact SR 1-A Service Area to Orange On-going On-going General Manager EAO FY 2011/12 Budget Report in Progress for Water District CEQA through OCWD Completed with Forecast Service Engineering Costs Included in FY Urban Water SR 1-B Demand Projections Oct-10 Jun-11 Manager PRO 2010/ 11 Budget Management Plan Update Engage with Regional Completed Recycled SR 1-C Agencies on Water On-going On-going General Manager EAO Water Study Continue Supply Issues to Monitor Desal and Other Local Projects Complete 2011 Strengthen Existing Emergency Update of Emergency SR 1-D Emergency Operations On-going On-going Operations EAO Response Plan 8v Partnerships Coordinator/GM Participate in Regional Exercises Maximizing this Develop Additional Engineering resource will lower SR 1-E Well Sites Mar-11 Jun-12 Manager PRO est. $1.SM per site Operating Costs by $1M per year Evaluate Alternative Engineering Develop Goals and SR 1-F PRO Objectives after Water Sources Manager Completing SR 1-E Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments Date Committee Impacts SR 2: Ex lore Service Boundary O ortunities Evaluate Feasibility of Providing Additional Analyze Cost Benefit SR 2-A Water Services with Jul-11 Jun-12 General Manager EAO of Acquiring Locke Ranch Water System the Region Evaluate Feasibility of Analyze Cost Benefit Providing Additional of Acquiring Placentia SR 2-B Wastewater Services Jul-11 Jun-12 General Manager EAO Wastewater with the Region Collections System Evaluate Feasibility of Analyze Cost Benefit SR 2-C Providing Other Jul-11 Jun-12 General Manager EAO of Partnering in GIS Professional Services Services with Local with the Region Agencies SR 3: Continue Implementation of Ca ital Im rovement Project Plan 2007-2012 Complete Current Capital Implementation of Five Projects Update Year Capital Engineering See Annual Updates Completes the SR 3-A Improvement Plan On-going On-going Manager PRO of Three Year CIP Aggressive Cl Plan from FY 2007-2012 started in 2003 and with Adopted 2007 with supporting Amendments Bond Sales Continue Planning for Annually Review Long-Term Capital Engineering Service Reliability and SR 3-B Improvements and On-going On-going Manager PRO Asset Replacement Replacements Needs Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments Date Committee Impacts WE 1: Retain a Hi hl Skilled and Ca able Workforce Maintain Competitive WE 1-A Compensation via On-going On-going HE Manager PRM TED Classification and Compensation Surveys WE 1-13 Explore Alternative Jul-11 Jun-12 HE Manager PRM Long Term Cost Include in FY Benefits Savings Expected 2012/13 Budget Establish Career WE 1-C Development Jul-11 Dec-11 Executive Staff PRM None Initiate one-on-one Expectations of employee interviews Existing Employees Develop Methodologies Include to Assist Employees in Executive recommendations in WE 1-D Jan-12 On-going Staff/ EPIC PRM None Attaining Career Committee employee annual Expectations reviews Continue to Support General Incremental Budget WE 1-E Additional Training for On-going On-going Manager/HR PRM Adjustments if Staff Manager Needed Encourage Staff Track and Report on Participation in General Progress Regularly to WE 1-F Professional On-going On-going Manager EAO 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 PRM None Personnel-Risk Evaluations Management Committee WE 2: Develop a Com rehensive Succession Plan Present Draft Report Indentify Key Roles for General to Personnel-Risk WE 2-A Succession Jul-11 Sep-11 Manager/HR PRM None Management 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 PRM None Management Required for Key Roles Manager Committee at Oct- 2011 Meeting Identify Individuals Present Draft Report with the Potential to General to Personnel-Risk WE 2-C Perform Highly in Key Jul-11 Sep-11 Manager/HR PRM None Management Roles Manager Committee at Oct- 2011 Meeting Develop Methodologies Present Draft Report to Assist Employees in HE to Personnel-Risk WE 2-D Preparing for Oct-11 Dec-11 Manager/EPIC PRM None Management Advancement Committee Committee at Jan- 2012 Meeting Strategies Start Date Completion Lead Party Lead Financial/ Staffing Comments WE 3: Enhance Employee Relations Implement a Program Cost Savings from WE 3-A to Recognize Jul-11 Sep-11 EPIC Committee EAO TED Efficient and Employees for Excellent Service May Excellence Fund Program Begin with Adopted WE 3-13 Conduct Quarterly All- Jul-11 Quarterly General EAO None Strategic Plan and Hands Meetings Manager Budget Goals in early Jul 2011 Continue to Encourage Present Opportunities Employee Training in General and Program Progress WE 3-C Leadership and On-going On-going Manager EAO to Personnel-Risk Technology Management Committee Regularly ITEM NO. 3.2 AGENDA REPORT Meeting Date: June 21, 2011 To: Executive-Administrative- Organizational Committee From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Subject: Elk Mountain Joint Use Consideration SUMMARY: The purpose of this Discussion Item is to consider the policy questions related to the potential joint use of the Elk Mountain Reservoir Site and other District sites. The District's current related policy is attached for review and discussion. The District is planning a public information meeting in July for the Elk Mountain proposed project and the Committee should discuss how Board member attendance at this public information meeting is to be handled to consider quorum and other issues that may arise. ATTACHMENTS: Narne: Descripdon: Type: Resolution No. 94-18.pdf Current Recreation Policy Backup Material RESOLUTION NO. 94-18 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING A RECREATION POLICY WHEREAS, the Yorba Linda Water District finds it in the best interest of the citizens of the District to encourage and support the conjunctive use of certain public assets for recreational and community purposes; and, WHEREAS, the Yorba Linda Water District has public facilities, such as the surfaces of buried concrete reservoirs and other assets, which might prove suitable for various recreational purposes; and, WHEREAS, those cities in the Yorba Linda Water District service area each provide comprehensive community recreation programs for their citizens; and, WHEREAS, these cities possess the knowledge, skill and abilities required to design and implement valued recreational and community programs for the communities they serve. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as that it shall be the policy of the Yorba Linda Water District to offer the use of certain facilities to cities in the District's service area as venues for the delivery of active recreational and sports programs, passive recreational activities such as trail stops and overnight camping, and other programs and services which might benefit the community now and in the future. PASSED AND ADOPTED this 27th day of October, 1994 by the following called vote: Ayes: 4 - Arthur Korn, Paul Armstrong, Michael Beverage and Sterling Fox Noes: 0 Absent: 1 - Carl Scanlin Abstain: 0 Vice President, Arthur: Korn Yorba Linda Water District re Yorba Linda Water District OINVENTORY OF DISTRICT FACILI'4S FOR CONJUNCTIVE USE Highland Reservoir Total Usable Space: 5.07 acres This reservoir is located on Highland Avenue between Buena Vista and Yorba Linda Boulevard. The reservoir was constructed in 1910 and is situated on 8.75 acres. Access to this property is from Highland Avenue, a public street. The roof of the reservoir is above ground and is not capable of supporting recreational type activities. There are existing equestrian and bicycle trails that are adjacent to this property, owned and maintained by the City of Yorba Linda. Because the majority of the District's property is not fenced, equestrian and bicycle trail stops could be developed on the property and incorporated into the city's trail system. The property also has a large number of mature trees that offer a lot of shade making it ideal for a park. Bastanchury Reservoirs Total Usable Space: 0.00 acres This property is located in the orange groves north of Bastanchury Road between Lakeview Avenue and Plumosa Drive. There are two - 2 million gallon above ground steel reservoirs on this 2.5 acre site that were constructed in 1960. Access to the site is from Bastanchury Road through dedicated easements. Due to the lack of usable space and restricted access this property is not suited for recreational activities. Fairmont Reservoir Total Usable Space: 1.10 acres This reservoir is located on the east side of Fairmont Boulevard approximately 1/2 mile north of the North Orange County Community College District. The property contains an above ground booster station. Access to this property is from Fairmont Boulevard which is a dedicated public street. Currently, the property is surrounded by vacant fields, however, when ultimate development is completed the property will have residential homes on all sides of the property. Recreational activities that are suitable for this property are baseball, soccer and football practice fields, a park, a playground, roller hockey court, tennis and basketball courts. Additionally, there is an equestrian trail that crosses in front of the property. A rest area for riders using the trail system is also a possibility. i The District has an Agreement with Upper K Shapell whereby the developer is required to construct new improvements at this site when they develop their adjacent tracts. These improvements consist of grading, fencing, landscaping and constructing street improvements. The completion of these improvements will further enhance this property for possible recreational uses. Springview Reservoir Total Usable Space: 1.30 acres This reservoir is located south of Cassia Lane and west of Pepper Avenue. This property also contains a below ground booster station. Presently there are vacant fields to the west and south of this property and residential homes to the north and east. When development is completed in the area, residential homes will surround the property. Temporary access to the property is through the vacant fields owned by S & S development. Permanent access to this site will be through a future private street. Because the streets in the proposed tracts have been approved by the City as private, this reservoir is landlocked from citizens of the community gaining access to this site. If the access issue is resolved, possible types of recreational activities that could use this site are baseball, football, and/or soccer practice fields, a park, playground, tennis courts or basketball courts. Little Canyon Reservoir Total Usable Space: 0.23 acres This reservoir is located west of Fairmont Boulevard and south of Little Canyon Lane. There are vacant fields surrounding this property. Access to this site is from Little Canyon Lane through dedicated easements. Because this reservoir is on the side of a mountain and there are steep canyons on the east and south sides of the property, the property could be used by remote control gliders. There is also a dedicated equestrian trail that crosses near this property. Accordingly, trail stops for citizens using the equestrian trail is a possibility for this site. Due to the size of the reservoir surface, no other recreational activities are suitable for this property. Chino Hills Reservoir Total Usable Space: 0.10 acres This reservoir is located in the Chino Hills State Park north of Rim Road. Because this property is located within the State Park, a rest area for citizens hiking in the State Park is a possible recreational use. Santiago Reservoir Total Usable Space: 0.18 acres This reservoir is located on the ridge line west of Green Crest Drive. The property contains a buried concrete reservoir and a below ground booster station. Access to this site is from Green Crest Drive through dedicated easements. Because this reservoir is on a ridge and there are steep canyons on both sides of the property, the site is ideal for remote control gliders. There is also a dedicated equestrian trail that crosses in front of this property. Accordingly, a trail stop for citizens using the equestrian trail is suitable for this property. Bryant Reservoir Total Usable Space: 0.39 acres This reservoir is located east of Avenida de Michelle and south of Avenida de Marcia. Access to this lot is from Avenida de Michelle through dedicated easements. This reservoir is bounded on three sides with residential homes. There is a natural open space lot to the south of the reservoir that is owned and maintained by Brighton Homes. Due to the size of the reservoir surface, possible recreational activities is a park and playground. Elk Mountain Reservoir Total Usable Space: 1.75 acres This reservoir is located on Elk Mountain Road east of Camino de Bryant Street. This property contains a buried concrete reservoir and a below ground booster station. Access to this property is from Elk Mountain Drive which is a dedicated public street. This property is located in a residential tract. Possible recreational activities that could use the site are baseball and soccer practice fields and a park. An agenda report outlining a proposed lease agreement with the City of Yorba Linda is on todays agenda for the Board of Directors consideration. Camino de Bryant Reservoir Total Usable Space: 0.80 acres This reservoir is located near the Orange County/San Bernardino County line at the terminus of Camino de Bryant Street. The reservoir is presently the District's highest reservoir in terms of elevation at 1,165 feet. The land surrounding this property consists of natural vegetation typically found throughout the Chino Hills State Park region. Access to this site is from Camino de Bryant through a dedicated easement. Because this reservoir is located at the top of the mountain and is adjacent to the Chino Hills State Park, a resting area for hikers in the State Park and/or a site for remote control gliders are possible recreational uses. Future Reservoirs The District's Five Year Plan has identified the need for two additional reservoirs to serve future development. There are also reservoirs needed to serve the new Shell development and the Brighton property north of the North Orange County Community College District. Staff will review each project during the initial planning process for possible recreational activities. ITEM NO. 3.3 AGENDA REPORT Meeting Date: June 21, 2011 To: Executive-Administrative- Organizational Committee From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Subject: Orange County Grand Jury Compensation Survey of Water and Sanitation Districts SUMMARY: The County of Orange Grand Jury has prepared and released a report summarizing compensation levels for general managers and board members of water and sanitation districts in Orange County. Yorba Linda Water District is one of the agencies included in the report and is mandated by Penal Code Section 933.05 to respond in writing to address the findings and recommendations at the end of this report. The Grand Jury's report was released to the public on June 10, 2011 and the District has ninety days to prepare and submit its response. DISCUSSION: Staff will prepare a draft response to the OC Grand Jury report for consideration by the Committee and the full Board of Directors in July or August. The recommendations that may be considered include minor modifications to the District's website enhancing ease of use and transparency with the information items identified in the report. ATTACHMENTS: Name: Description: 1 ype: OC Grand Jury Compensation Survey.pdf Report Backup Material COMPENSATION SURVEY OF ORANGE COUNTY WATER AND SANITATION DISTRICTS COMPENSATION SURVEY OF ORANGE COUNTY WATER AND SANITATION DISTRICTS SUMMARY The 2010/ 11 Orange County Grand Jury has completed a review of compensation practices for the boards of directors and general managers of the eighteen water and sanitation districts in Orange County. The districts studied are independent government agencies, run by an elected or appointed board of directors, and administer combined annual revenues of over $1.3 billion. Yet for a variety of reasons, they receive little public interest or scrutiny. Given the recent excesses in local government, the potential for serious problems exist, thus the attention of the Grand Jury. In general, despite a seeming lack of interest on the part of the public, it was found the districts went efficiently about their business, providing water, wastewater and solid waste collections services to the citizens of Orange County. However, there are several areas of concern. While payments for meeting attendance by board directors are limited by State statute, there is no limitation of benefits paid to directors. Some districts have chosen to provide their directors with limited or no benefits, there are some instances of full time benefits being paid for part time work. The Grand Jury found wide variation among the districts studied in the ability of the general public to obtain compensation, financial and meeting information. As a result, the Grand Jury has recommended minimum standards for information access on district websites. 1 ORANGE COUNTY GRAND JURY 2010/2011 REASON FOR STUDY Water and sanitation districts within Orange County are not well understood by the general public, and given little attention. Yet these districts have tremendous power to levy fees and often possess substantial capital reserves. They also play a vital role in public health and safety. Due to recent excesses in local government compensation and the mounting financial burden created by public pension obligations, there is justified concern on the part of the public towards local government and the way it conducts its affairs. Given this heightened concern over local government operations, the Grand Jury determined it would be worthwhile to review and illuminate the compensation received by the boards of directors and general managers of the water and sanitation special districts within Orange County. Many have referred to this concept as "transparency." Beyond just providing compensation data, the Grand Jury also felt an examination of how that information is conveyed to the public would be useful. It is hoped that by providing this information in a uniform context, public confidence can be increased for this sector of government. METHODOLOGY The Grand Jury made the decision at the study's inception to review all special districts in Orange County dealing in water or wastewater, regardless of their size or function. This approach combines water retailers, water wholesalers, as well as wastewater treatment agencies. Water retailers provide water directly to individual users while water wholesalers provide water to water retailers, thus complexity of operations will differ. Each district was sent a questionnaire soliciting compensation and benefits information for the board of directors and the general manager position. Other documents requested included annual reports, district by-laws, financial statements and budgets, organization charts, as well as any employment contract for the general manager. Follow up contacts were made to clarify data or seek additional information. This data was analyzed to see if it was in compliance with the State of California Water Code (Water Districts) and the State of California Sanitation Code (Sanitation Districts). All districts appeared to be 2 ORANGE COUNTY GRAND JURY 2010/2011 following state guidelines in regards to number of monthly meetings and director compensation. In addition to the direct information supplied by the districts, the Grand Jury also reviewed each district's individual website as well as the website of the State Controller of California. The individual district websites were surveyed to judge their ease of use, the value of the information provided to the public as well as to provide data for some of the statistical analysis contained in this report. The State Controller's website contains the annual "Local Government Compensation Report", which includes special districts such as water and sewer districts. The data presented on the Controller's website is for the calendar year of 2009 and thus may be at variance with values stated in this report. Members of the Grand Jury attended various district board meetings to gauge the level of public interest and attendance and to see if district business was conducted in an open and detailed manner. On two occasions, members arrived at the scheduled time and place of the public meeting as shown on a district's website and found it to be cancelled, with notice posted only at the location of the meeting site. This report is focused on total compensation, including value of benefits, to the individual general manager or board of directors member. "Retirement benefits", as used in this study, do not include those amounts that the employer is normally required to pay as the employer's standard share of pension contributions. However, if the employer is paying all or some of the amount an employee would normally be expected to pay (the "employee's share"), then that amount was included as additional compensation to the employee in the calculations. In all cases retirement benefits included any type of defined benefit retirement plan, retirement health accounts or any other deferred compensation contributions the employer is making on the employee's behalf. "Insurance" includes any combination of the following: medical, dental, vision, life and accidental death, short-term disability, long-term disability, and long term care insurance. These numbers include only the cost to the employer; they do not include any premiums paid by the employee. If an employee elected to take cash in lieu of insurance coverage that dollar amount was captured in the insurance calculations. "Car allowance" may be either an actual cash payment to the employee or the imputed value of using a district supplied vehicle. If the general manager used a district "pool" vehicle for daily work it was not included as a car allowance. 3 ORANGE COUNTY GRAND JURY 2010/2011 Bonuses were noted, although it is recognized that they may be a one- time benefit and may not reappear in other years as compensation. Focusing on the larger picture and major elements of compensation, it was elected to not quantify benefits for less expensive categories, such as cell phone allowances. Likewise, job-related reimbursables, such as conferences, travel, training, etc., were excluded. Board of directors for these special districts do not receive a salary, rather they are compensated for attending meetings related to district business. These stipends are set by State of California government statute and contain inflation escalation clauses. The statute also limits the number of meetings a board member may collect fees for in any given month. Quantifying compensation for a district's board of directors presented some challenges. First, the basic compensation for a director is dependent upon the number of meetings attended by a given director, and considerable variation was observed. Further, different insurance health packages (when offered) were selected by various directors leading to large spreads in insurance costs on individual boards. The Grand Jury felt the fairest presentation of the compensation for a given board member was to use an averaging method. To accomplish this, the actual annual total district expenditures for board of directors' stipends, health insurance and retirement amounts were divided by the number of directors on the district's board, giving an "average compensation" for directors. Some directors were compensated above this average value and some less. While some precision is diminished, the Grand Jury feels it provides a valuable benchmark for comparison. FACTS Fact: Combined total annual revenues for the 18 water and sanitation special districts in Orange County exceed $1.3 billion. Fact: California state law defines a special district as "any agency of the state for the local performance of governmental or proprietary functions within limited boundaries (Government Code Section 16271 (d)). Fact: Compensation for the board of directors of water districts must be set in accordance with the California Water Code Section 20202 and for the board of directors of Sanitation Districts, in accordance with the Health and Safety Code, Section 6489. 4 ORANGE COUNTY GRAND JURY 2010/2011 Fact: Board of director meeting stipends for water and sanitation special districts are capped by the state. Other compensation packages for the board of directors and the general manager are set by the board of directors in each district. Fact: Elected or appointed officers of a special district, commission or board elected or appointed after June 30, 1994 are prohibited from participating in the California Public Employees' Retirement System (CalPERS). ANALYSIS What are Special Districts? The agencies reviewed by this report are commonly referred to as "special districts". State law defines a special district as "any agency of the state for the local performance of governmental or proprietary functions within limited boundaries." A special district is a separate local government that delivers a limited number of public services to a geographically limited area. Inadequate revenue bases and competing demands for existing taxes make it hard for counties and cities to provide all of the services that their constituents want. When residents want new services or higher levels of existing services, they can form a district to pay for them. Special districts localize the costs and benefits of public services. Most special districts serve just a single purpose, such as districts for sewage treatment or water delivery, the focus of this report. Sometimes county supervisors or city councils are special districts' governing boards, as is the case of dependent special districts. Independent special districts operate under state laws as autonomous government entities with independent elected board of directors accountable to the local voters they serve. However, special districts must make certain reports to the State of California. For example, special districts must send their annual financial reports to the State Controller's Office. Districts must also follow the state laws for special taxes, bonded debt, public hearings, public records, and elections. Water districts were formed in Orange County as early as 1925 (Laguna Beach County Water District). Population growth, coupled with the drought beginning in 1987 and escalating in 1989-90, generated a new way of thinking for the water districts in Orange County. A renewed 5 ORANGE COUNTY GRAND JURY 2010/2011 focus began to be placed on conservation, groundwater management and water recycling. Orange County has 14 water and 4 sanitation districts; all classified as independent districts, each having their own board of directors. Not all areas of Orange County use water district services. These communities (typically older cities) have their own water sources and are operated by either city governments or private water companies. Originally, water districts were limited by state law to what services they could provide. But in 1963 the California Water District Act was amended allowing water districts to provide wastewater and water reclamation services. Of the 18 special districts studied in this report, 8 provide both water and wastewater services. District descriptions and background The following table contains demographic data describing each of the districts, with particular emphasis on various measures of size. It's important to note that these districts have an annual combined total revenue of approximately $1.375 billion, yet very few taxpayers give the attention to the structure and management of these entities that they may give to their local city councils. The data in the table was acquired from a number of sources, the majority from the districts themselves, their annual reports or their websites. "Annual Revenue (2009/ 10)" generally reflects the total income received from all sources by each district for the fiscal year of 2009/ 10. This can differ from a district's operating budget, which may exclude amounts for debt servicing or capital projects. 6 ORANGE COUNTY GRAND JURY 2010/2011 Special Districts Statistical Summary Year Population Annual Revenue District Formed Employees Served (2009/10) Costa Mesa Sanitary District 1944 18 116,700 $10,452,000 East Orange County Water District 1961 10 104,000 $6,307,708 B Toro Water District 1960 55 51,000 $19,724,200 Irvine Ranch Water District 1961 315 330,000 $205,500,000 Laguna Beach County Water District 1925 40 25,000 $9,000,000 Mesa Consolidated Water District 1960 60 116,479 $29,102,086 Midway Oty Sanitary District 1939 24 100,000 $8,926,587 Moulton Niguel Water District 1960 98 166,964 $77,195,000 Municipal Water District of O.C. 1951 30 2,300,000 $154,963,970 Orange County Sanitation District 1946 648 2,600,000 $594,700,000 Orange County Water District 1933 217 2,400,000 $109,775,309 Fbssmoor/LosAlamitosArea Sewer Dist. 1952 0.5 24,204 $384,608 Santa Margarita Water District 1964 128 150,000 $79,053,240 Serrano Water District 1927 11 6,500 $4,639,911 South Coast Water District 1932 73 40,000 $31,900,685 Sanset Beach Sanitary District 1930 3 2,500 $948,283 Trabuco Canyon Water District 1962 23 13,350 $7,055,526 Yorba Linda Water District 1959 76 75,000 $25,858,705 Total for all Districts $ 1,375,487,818 The following section provides a brief overview of each of the 18 special districts included in this report. Any features or operations unique to each district are mentioned. 7 ORANGE COUNTY GRAND JURY 2010/2011 Costa Mesa Sanitary District (Sewer and solid waste pickup) The District's boundaries encompass all of the City of Costa Mesa and portions of Newport Beach and unincorporated Orange County. In addition to providing sewer service to 116,000 residents, the District also provides curbside refuse and recycling collection services to over 21,000 households. East Orange County Water District (Water only) The District's wholesale operation encompasses an area of approximately 10,000 acres including the City of Tustin, a portion of the City of Orange and unincorporated territory bordering the eastern side of Santa Ana and Orange. In July 1985 the District entered retail water operations when it took over the operations of Orange County Water Works System #8. El Toro Water District (Water and sewer) The El Toro Water District's water and wastewater system serves over 5,000 acres including all of Laguna Woods and portions of the cities of Laguna Hills, Mission Viejo, Lake Forest and Aliso Viejo. Service connections are provided for residential, commercial, industrial and institutional use. In September 1983, the District purchased the assets of a privately owned utility to become a retail water and sewer provider. Irvine Ranch Water District (Water and sewer) The District serves 181 square miles in central Orange County including the City of Irvine and portions of Tustin, Newport Beach, Costa Mesa, Orange, Lake Forest and unincorporated areas. It provides drinking water, reliable wastewater collection and treatment, recycled water and urban runoff treatment. Over the last ten plus years the District has consolidated with five water districts which resulted in greater efficiency and lower rates and charges to its customers. Laguna Beach County Water District (Water only) The District provides service within an 8.5 square mile area including portions of Laguna Beach, Crystal Cove State Park and supplies, under contract, water and services to the unincorporated community of Emerald Bay. Its 8,450 service connections service mostly residential water users. Within the District there are 21 water storage reservoirs providing approximately ten days of water to the community in the event of an emergency. In November of 2000, the District became a subsidiary of the City of Laguna Beach. Through an operating agreement with the City, the District operates independently, retaining its assets, separate legal counsel, separate insurance and benefits and continues to operate under the State of California Water Code. The Laguna Beach City council members act as the Water District's ex-officio Board of Directors. They 8 ORANGE COUNTY GRAND JURY 2010/2011 draw no salary but their medical insurance benefits are paid by the water district and not by the City of Laguna Beach. Besides the Board, there is also a Commission that does the day to day decision making. The Commission members are appointed by the Board of Directors (Laguna Beach City Council) and serve 2 year terms. This report considers compensation of only the Commissioners. Mesa Consolidated Water District (Water only) The District was created though the merger of three districts and the City of Costa Mesa Water Department. This was the first California water agency to consolidate two or more water districts and assumed the debt s and obligations. The District serves an 18 square mile area and includes the City of Costa Mesa, parts of Newport Beach, unincorporated areas and John Wayne Airport. Midway City Sanitary District (Sewer and solid waste pickup) The District maintains 174 miles of sewer mainlines transporting 13 million gallons a day to treatment facilities serving residents in Westminster and the unincorporated area known as Midway City. In addition, the District provides curbside refuse and recycling collection services to 20,600 residences and commercial and industrial properties within the District. Moulton Niguel Water District (Water and sewer) The District was formed in 1960 to provide a water supply to the Moulton Niguel Service. In 1964 the District began wastewater services previously provided by Orange County Sanitation District No. 12. The District encompasses approximately 36.5 square miles and includes the cities of Laguna Niguel, Aliso Viejo and portions of Laguna Hills, Mission Viejo and Dana Point. Water and sewer accounts are estimated at just over 54,000. Municipal Water District of Orange County (Water only) The District is a wholesale water management and planning agency that provides imported water to 28 water purveyors and two private water companies in a service area of over 600 square miles. These smaller entities then provide the water to residential and commercial customers. In 2001 the District consolidated with Coastal Municipal Water District of Southern California. It is the second largest member agency of the Metropolitan Water District of Southern California, the agency that supplies Southern California with the majority of its imported water. It coordinates countywide water/ wastewater emergency preparedness and response efforts. 9 ORANGE COUNTY GRAND JURY 2010/2011 Orange County Sanitation District (Sewer only) The District provides wastewater services for much of Orange County. Its boundaries cover 479 square miles, serving 21 cities and three special districts. The District has two operating facilities, one in Fountain Valley, the other in Huntington Beach, treating wastewater from residential, commercial and industrial sources in central and northwest Orange County. Each day approximately 230 million gallons of wastewater is treated, enough water to fill Angel Stadium three times a day. The 25 members of the District's board of directors consist of elected representatives from each of the sewer agencies or cities within the Orange County Sanitation District. Thus the board members of the District are not elected directly, but are appointed by their respective agencies. Orange County Water District (Water only) Despite its name, the Orange County Water District is not a water provider in the usually understood sense. Its function is to manage the underground water in Orange County, called the aquifer. Agencies pumping water from the ground in Orange County are regulated and charged by this district. The Orange County Water District also operates the Groundwater Replenishment System, a state of the art plant in Fountain Valley that purifies wastewater and injects it back into the ground for reuse. The board of directors for this district is a hybrid of elected and appointed officials. Of the 10 board members, 7 are elected from defined service areas within the district, and 3 are appointed representatives of the cities of Fullerton, Anaheim and Santa Ana. Rossmoor/Los Alamitos Area Sewer District (Sewer only) The District was created in 1952 by area citizens desiring an adequate sewer system to replace outdated septic tanks. Annexations in 1954 and 1960 added the Rossmoor residential development and the nearby Naval base. The District serves more than 8,000 sewer connections in Rossmoor, Los Alamitos, the College Park West area of Seal Beach and parts of Cypress. This district has only one part time employee, serving essentially as general manager. All other district work is contracted out. 10 ORANGE COUNTY GRAND JURY 2010/2011 Santa Margarita Water District (Water and sewer) The District is the second largest water district in Orange County serving residents and businesses in Mission Viejo, Rancho Santa Margarita, Coto de Caza, Las Flores, Ladera Ranch and Talega. The size of the district expanded from 41,400 acres to its present size of 62,674 acres through a series of annexations and several small land exchanges with Moulton Niguel Water District to better align boundaries. The District is one of five south Orange County water agencies that partnered to finance and construct the 244 million gallon Upper Chiquita Reservoir project. Serrano Water District (Water only) The District provides services to approximately 2,000 acres which includes Villa Park and a minor portion of the city of Orange with approximately 2,250 domestic meters in service. This was the smallest water district studied, with a population of about 6,500. The District's principal source of water is native water drawn from Santiago Reservoir, also known as Irvine Lake, which it also manages as a recreational facility. South Coast Water District (Water and sewer) For decades the south coast area of Orange County was served by three water and sanitary agencies. As of January 1, 1999 these agencies consolidated to form the "expanded" South Coast Water District. Water and/or sewer services are provided to more than 17,000 customer accounts in Dana Point, Monarch Beach, Capistrano Beach, South Laguna and areas of north San Clemente and north San Juan Capistrano. Sunset Beach Sanitary District (Sewer only) The District was formed to provide wastewater services to an area of approximately 175 acres. This area includes the unincorporated community of Sunset Beach and Surfside Colony. The District collects both sewage and municipal solid waste. The District contracts with the Orange County Sanitation District for sewage treatment and effluent disposal and with the City of Huntington Beach for sewage conveyance. This smallest district studied (population 2,500) lacks even a physical office and public meetings are held in a local women's club. Its boundaries are included in the pending annexation of Sunset Beach by the City of Huntington Beach, so its future is unclear. 11 ORANGE COUNTY GRAND JURY 2010/2011 Trabuco Canyon Water District (Water and sewer) The District provides retail water service, wastewater treatment, reclamation and agricultural services to over 4,000 metered connections in a 9,000 acre area at the foothills of the Santa Ana Mountains. This area is comprised of numerous canyons and hills with varying elevations from 900 to 2,400 feet above sea level and includes the communities of Dove Canyon, Trabuco Canyon, Robinson Ranch and Portola Hills. Wastewater is collected and reclaimed at the Robinson Ranch Wastewater Treatment Plant built in 1984 and expanded in 1992. One hundred percent of the reclaimed water is then used for irrigation. Yorba Linda Water District (Water and sewer) The District was started in an unincorporated area. Through the 1950s the area was largely rural but rapidly transitioned to suburban land use. Annexations expanded the District from 4,710 acres in 1959 to over 14,000 acres today. The District serves most residents in the City of Yorba Linda and portions of Placentia, Brea and Anaheim. The District has nine active wells which provide 50 percent of the water produced, the rest derived from imported sources. Board of Directors compensation Total compensation among the districts varies based on their size and on decisions made by their boards concerning their benefits. In the early 1990's the California Water Code Section 20201 put a ceiling of $100 on the maximum amount water board members can receive for attendance at any one meeting of the board or directors. However, Section 20202 authorizes water district boards to increase the amount of compensation not to exceed 5% for each calendar year, although any such increase is at the board's discretion. Some districts have chosen to increase the per meeting director stipend regularly while others have not. This has resulted in a disparity in meeting compensation between districts ranging from $100 per meeting up to $237 per meeting. In addition to meeting compensation, State statutes also limit the maximum number of compensable meetings to 10 monthly for water districts and 6 monthly for sanitation districts. Some districts hold very few meetings per month, while others approach the maximum allowed, due to extensive subcommittee meetings or qualifying meetings with outside agencies. Thus annual director compensation for meetings alone has a wide range, from as little as $1,200 (Sunset Beach Sanitary District) to $28,000 (Irvine Ranch Water District). 12 ORANGE COUNTY GRAND JURY 2010/2011 While pay per meeting is set by statute, benefits such as medical insurance and retirement are not. Benefits paid to special district directors are set solely by the board of directors themselves. Four districts provide retirement benefits and ten districts provide insurance benefits to their directors. It should be noted that board members elected since June 30, 1994 are prohibited from participating in the CalPERS retirement program. Four of the districts studied still have some sitting board members elected before the CalPERS prohibition was implemented 17 years ago. Because there are so few of these members and future board members cannot qualify for these funds, the Grand Jury elected to exclude these small amounts from the data reported here. There is no restriction against the participation of board members in other types of retirement programs, such as other defined benefit plans or deferred compensation plans. 13 ORANGE COUNTY GRAND JURY 2010/2011 The following graph shows the average annual fiscal year 2009/ 10 compensation received by board members of the special districts studied and analyzed as discussed in the "Methodology" section. After the graph follows a table showing a breakdown of director compensation in more detail. Note that in that table, and those following, the entry denotes a value of zero. Director Average Annual Compensation 00 000 000 000 000 000 000 000 6'4 6q~, 6q 6q 6q~ 6q~ 6q~ 6q~ J Costa Mesa Sanitary District East Orange County Water District El Toro Water District Irvine Ranch Water District Laguna Beach County Water District * Mesa Consolidated Water District Midway City Sanitary District Moulton Niguel Water District Meetings Municipal Water District of O.C. ■ Benefits Orange County Sanitation District Orange County Water District Rossmoor/Los Alamitos Area Sewer Dist. Santa Margarita Water District Serrano Water District South Coast Water District Sunset Beach Sanitary District Trabuco Canyon Water District Yorba Linda Water District 14 ORANGE COUNTY GRAND JURY 2010/2011 Director Average Annual Compensation District Meeting Retirement Insurance Total Benefits Total Compensation Compensation Costa Mesa Sanitary District S 13,083 S S 5 S 13,083 East Orange County Water District 3,600 3,600 El Toro Water District 20,000 3,796 3,796 23,796 Irvine Ranch Water District 28,000 10,730 10,730 38,730 Laguna Beach County Water District 2,760 - - 2,760 Mesa Consolidated Water District 21,404 7,906 7,906 29,310 Midway City Sanitary District 14,187 6,625 6,625 20,812 Moulton Niguel Water District 16,429 329 14,999 15,328 31,757 Municipal Water District of O.C. 24,505 3,168 9,613 12,781 37,286 Orange County Sanitation District 8,512 638 - 638 9,150 Orange County Water District 22,176 3,543 9,289 12,831 35,008 Rossmoor/Los Alamitos Area Sewer Dist. 1,200 - - - 1,200 Santa Margarita Water District 12,012 - - 12,012 Serrano Water District 4,640 10,939 10,939 15,579 South Coast Water District 19,422 - - 19,422 Sunset Beach Sanitary District 1,200 - - 1,200 Trabuco Canyon Water District 7,850 18,077 18,077 25,927 Yorba Linda Water District 9,270 4,316 4,316 13,587 Data shown is for Commissioners and based on monthly stipend There is a significant variance in the benefits paid to boards of directors of the special districts studied. In some cases benefits constitute a significant portion of a director's total compensation. For example, in the case of the Trabuco Canyon Water District, the benefits make up approximately 70% of their directors' total compensation. This level of benefits has opened many special districts up to criticism. Since board meetings are usually held only a few times per month (sometimes only once per month), they are effectively part-time jobs. Yet in many cases these part-time jobs come with full time benefits. There is no statutory prohibition against providing full-time benefits to board members for part-time duties. The situation may have arisen due to the fact that in past years health benefits were much less expensive than today. As a result they were often provided as a standard benefit for many employees. As costs for these types of benefits have dramatically risen, districts may not have considered the appropriateness of their provision for what are essentially part time members. 15 ORANGE COUNTY GRAND JURY 2010/2011 Some of the smaller districts studied are models of frugality. The Sunset Beach Sanitary District and the Rossmoor/Los Alamitos Sanitary District seldom meet more than once a month, even though permitted to do so. Further, their directors receive no benefits beyond their modest meeting stipends. In the case of the small East Orange Water District, it is their policy that board members rarely go to outside meetings and collect their meeting stipend. Instead, the General Manager attends outside agency meetings and reports back to the directors as a cost savings measure. The Laguna Beach County Water District has a somewhat different compensation model than most. As previously described, there is a panel of "commissioners" who manage normal matters of the district. The commissioners each draw a monthly stipend of $230, regardless of the number of meetings, and receive no benefits. 16 ORANGE COUNTY GRAND JURY 2010/2011 General Manager compensation All of the special districts studied were directed by general managers (for one district the position is called "Superintendent"). The board of directors sets general policy for each district and approves budgets and expenditures, while the general manager runs the day to day operations and manages the staff of a district. For the districts studied, most of the general managers' compensation fell in a relatively uniform range. There were a few exceptions, both on the low end and the high end. The following graph summarizes the general manager's compensation for fiscal year 2009/ 10 and the subsequent table breaks it down in more detail. General Manager Total Annual Compensation Costa Mesa Sanitary District NEWMMMM~ East Orange County Water District El Toro Water District Irvine Ranch Water District Laguna Beach County Water District Mesa Consolidated Water District Midway Sanitary District Moulton Niguel Water District Salary Municipal Water District of O.C. 0 Benefits Orange County Sanitation District Orange County Water District Rossmoor/Los Alamitos Area Sewer Dist. Santa Margarita Water District Serrano Water District South Coast Water District Sunset Beach Sanitary District Trabuco Canyon Water District Yorba Linda Water District 17 ORANGE COUNTY GRAND JURY 2010/2011 General Manager Total Annual Compensation I Bonus Retirement Insurance Car Total Non- Total District :1 Salary Allowance salary Compensation Costa Mesa Sanitary District $ 150,000 $ 3,000 $ 11,500 $ 9,588 $ 4,800 $ 28,888 $ 178,888 East Orange County Water District 85,540 - 5,988 16,265 4,200 26,453 111,993 El Toro Water District 181,064 - 36,667 15,896 6,600 59,163 240,227 Irvine Ranch Water District 244,992 25,479 39,688 13,569 7,992 86,728 331,720 Laguna Beach County Water District 191,324 - 13,393 7,432 - 20,825 212,149 Mesa Consolidated Water District 227,800 30,946 13,678 6,000 50,624 278,424 Midway Sanitary District 141,450 24,180 1,332 - 25,512 166,962 Moulton Niguel Water District 217,464 18,049 21,960 - 40,009 257,473 Municipal Water District of O.C. 219,902 15,393 14,052 9,000 38,445 258,347 Orange County Sanitation District 225,000 20,500 13,258 - 33,758 258,758 Orange County Water District 215,000 39,193 13,727 8,400 61,320 276,320 Rossmoor/Los Alamitos Area Sewer Dist. 50,000 - - 780 780 50,780 Santa Margarita Water District 220,000 27,840 15,828 - 43,668 263,668 Serrano Water District 187,000 5,610 21,108 26,718 213,718 South Coast Water District 192,000 28,415 20,004 48,419 240,419 Sunset Beach Sanitary District 47,646 - - 4,800 4,800 52,446 Trabuco Canyon Water District 179,500 14,360 11,994 - 26,354 205,854 Yorba Linda Water District 160,140 11,210 14,986 1 -11 26,196 186,336 Two districts were notable for not providing retirement or insurance benefits for their general managers: Rossmoor/Los Alamitos Sanitation and Sunset Beach Sanitary Districts. This is possibly the result of the positions being part time, and also the districts being small and fiscally responsible. All other districts studied provided retirement and insurance benefits. Two districts paid their general managers bonuses within the year studied, Costa Mesa Sanitary and Irvine Ranch Water Districts. The payment of a $25,479 bonus to the general manager of Irvine Ranch Water District resulted in that position having the highest compensation of all general manager positions studied (Although as previously noted, bonuses may be one-time events.) Car allowances were not uncommon, but were not a benefit restricted to only the larger, well funded districts. Several smaller districts provided their general managers with car allowances, yet a number of larger districts did not. However often larger districts maintain a fleet of district vehicles, which a general manager may use. In these cases, the use of a district vehicle did not show up as compensation. 18 ORANGE COUNTY GRAND JURY 2010/2011 There are two reasons for the larger variation in the "Total Non-salary" category which are both related to the retirement category. First, agencies with defined benefit programs sometime pay part of what would normally be the responsibility of employee to pay (the "employee's share") as a benefit. These districts feel it makes their job positions more attractive and improves hiring ability in a competitive market. The second reason for wide retirement benefit variability has to do with deferred compensation. A number of districts provide deferred compensation programs whereby money is deposited into an employee's account for use upon their retirement. Some districts require an employee match with the employee's own funds, but in other cases the district deposits money whether an employee does or not. The districts with the second and third highest retirement values listed, Orange County Water and El Toro Water Districts, deserve special mention. Of all the districts studied with employee retirement plans, these two are the only districts whose plans are not defined benefit plans. They are instead defined contribution plans. The districts and employees each contribute minimum required amounts to a deferred compensation plan. Either party may contribute more than the minimum, depending upon financial conditions. A defined benefit plan, such as offered through CalPERS or the Orange County Employees Retirement System (OCERS) is the stereotypical government pension plan. It defines the benefit to the employee upon retirement, regardless of financial conditions at that time. This type of plan has generated much controversy in the current economic times. A defined contribution plan instead specifies how much an employee and employer will contribute into a tax-deferred compensation plan, with no guarantee as to what the ultimate payout to the employee will be. The defined contribution plan reduces financial risk to the employer and is being held by many as a more responsible retirement plan for public employees. 19 ORANGE COUNTY GRAND JURY 2010/2011 The following shows the total general manager compensation for each district, ranked by the population data obtained from each district. The smallest district, Sunset Beach Sanitary District, is at the top, and the most populous district, Orange County Sanitation District, is at the bottom. General Manager Annual Compensation Ranked by District Population (Population in parentheses) $0 $100,000 $2007000 $3007000 Sunset Beach Sanitary District (2,500) Serrano Water District (6,500) Trabuco Canyon Water District (13,350) Rossmoor/Los Alamitos Area S. D. (24,204) _ Laguna Beach County Water District (25,000) South Coast Water District (40,000) El Toro Water District (51,000) Yorba Linda Water District (75,000) Midway Sanitary District (100,000) East Orange County Water District (104,000) Mesa Consolidated Water District (116,479) Costa Mesa Sanitary District (116,700) Santa Margarita Water District (150,000) Moulton Niguel Water District (166,964) Irvine Ranch Water District (330,000) Municipal Water District of O.C. (2,300,000) Orange County Water District (2,400,000) Orange County Sanitation District (2,600,000) Generally, it appears district population bears no significant relationship to salary and benefits paid to the general manager. However, two of the relatively small water districts, Serrano Water District and Trabuco Canyon Water District offer their general managers compensation on par with much larger organizations. 20 ORANGE COUNTY GRAND JURY 2010/2011 Serrano Water District is noteworthy. With a population of only about 6,500, Serrano Water District compensates its general manager more than the general manager of Costa Mesa Sanitary District, which is almost eighteen times larger in terms of population. However the Serrano Water District does have the additional responsibility of managing recreational activities at Irvine Lake. From the data presented, the compensation received by the general manager of the Irvine Ranch Water District is the highest of all districts studied. However if the $25,479 bonus is set aside, it is not far removed from general manager compensation of other large districts. Considering the size both in population and geography of that district, and the fact it operates the second largest budget of all districts studied, perhaps the level of compensation is not surprising. If it could be said that there is a standout among these districts, then perhaps it would be the East Orange County Water District. The frugality previously displayed in their board of directors compensation continues with their general manager. The general manager's compensation is significantly less than seven other, smaller-populated districts, and greater than only the two districts with part-time general managers. Information accessibility During the investigative process for this report, the Grand Jury utilized a number of sources to acquire data. One very important source was the websites operated by the districts themselves. There is a wide disparity in the availability of data, its ease of finding and the timeliness of the information. This did not necessarily correlate with the size of the district. Some large, sophisticated districts had limited online access to compensation and financial data, while some smaller districts excelled. A keystone of improving public confidence in local government operation is to make operating information easily available and demonstrate nothing is hidden. 21 ORANGE COUNTY GRAND JURY 2010/2011 Websites maintained by special districts should provide at least these minimum features. • A clearly labeled link or links on the website's home page to all financial and compensation information. • Compensation data should be provided for the board of directors and general manager listing all types of compensation (salary and other benefits) in a clear, understandable manner. • If the general manager operates under a contract, then a copy of the current contract should be posted on the district's website. • The current and previous fiscal year budgets should be posted. If available, the district's Comprehensive Annual Financial Report (CAFR) should be included. • Public meeting information, including dates, times, location, agendas and minutes should be listed and rigorously updated. As an example of what the Grand Jury would consider best practices in this area, reference is made to the website of the Costa Mesa Sanitary District. Through the "Transparency" link on their home page, access is provided to an extensive variety of compensation and benefit information. Additional links to "Agenda 8v Minutes" and "Finances" round out what is a superior website in terms of information accessibility. Grand Jury members attended scheduled public meetings of many of the districts in this report. Typically, the only members of the public present at the meetings were those of the Grand Jury. Citizens of those districts, for whom significant financial decisions are being made, simply choose not to attend. The only sure prevention for government abuse and excess is citizen participation. The Grand Jury did not observe this participation to be occurring to any significant level in the case of special districts. Public apathy towards these districts, unless corrected, is a recipe for disaster. While current management is honest and focused on the good of the people, lax public oversight could result in a very different situation. 22 ORANGE COUNTY GRAND JURY 2010/2011 FINDINGS In accordance with California Penal Code Sections 933 and 933.05, the 2010-2011 Grand Jury requires responses from the agencies affected by the findings presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based upon its Compensation Survey of Orange County Water and Sanitation Districts, the 2010-2011 Orange County Grand Jury has arrived at two principal findings, as follows: F.1: District websites often do not provide easy public access to compensation and financial data of the district, if available at all. F.2: District websites were sometimes not updated to reflect public meeting changes or cancellations. RECOMMENDATIONS: In accordance with California Penal Code Sections 933 and 933.05, the 2010-2011 Grand Jury requires responses from the agencies affected by the findings presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based upon its Compensation Survey of Orange County Water and Sanitation Districts, the 2010-2011 Orange County Grand Jury makes the following two recommendations: R.1: Provide in an easily accessible format on the district's website, data on compensation for the board of directors and general manager, as well as current budget and financial reports. R.2: Maintain and update agendas, minutes, meeting schedules and location on the district's website. 23 ORANGE COUNTY GRAND JURY 2010/2011 REQUIREMENTS AND INSTRUCTIONS: The California Penal Code Section 933(c) requires any public agency which the Grand Jury has reviewed, and about which it has issued a final report, to comment to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the agency. Such comment shall be made no later than 90 days after the Grand Jury publishes its report (filed with the Clerk of the Court); except that in the case of a report containing findings and recommendations pertaining to a department or agency headed by an elected County official (e.g. District Attorney, Sheriff, etc.), such comment shall be made within 60 days to the Presiding Judge with an information copy sent to the Board of Supervisors. Furthermore, California Penal Code Section 933.05(a), (b), (c), details, as follows, the manner in which such comment(s) are to be made: (a) As to each grand jury finding, the responding person or entity shall indicate one of the following: (1) The respondent agrees with the finding (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) As to each grand jury recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future, with a time frame for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a time frame for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This time frame shall not exceed six months from the date of publication of the grand jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefor. (c) If a finding or recommendation of the grand jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the Board of Supervisors shall respond if requested by the grand jury, but the response of the Board of Supervisors shall address only those budgetary or personnel matters over which it has some decision 24 ORANGE COUNTY GRAND JURY 2010/2011 making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department. Comments to the Presiding Judge of the Superior Court in compliance with the Penal Code Section 933.05 are required from the Boards of Directors of the following agencies: Responding Agency Findings Recommendations Costa Mesa Sanitary District East Orange County Water Dist. El Toro Water District Irvine Ranch Water District Laguna Beach County Water Dist. Mesa Consolidated Water District Midway Sanitary District Moulton Niguel Water District Municipal Water District of O.C. Orange County Sanitation District F.1 and F.2 R.1 and R.2 Orange County Water District Rossmoor/Los Alamitos Area S.D. Santa Margarita Water District Serrano Water District South Coast Water District Sunset Beach Sanitary District Trabuco Canyon Water District Yorba Linda Water District 25 ORANGE COUNTY GRAND JURY 2010/2011 ITEM NO. 3.4 AGENDA REPORT Meeting Date: June 21, 2011 Budgeted: No To: Executive-Administrative- Organizational Committee Funding Source: Operating Funds From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: No Prepared By: Cindy Botts, Management CEQA Compliance: N/A Analyst Subject: Board Communications Allowance SUMMARY: At the direction of the Board, staff has researched the development of a reimbursement program or allowance for the acquisition of Apple iPads or similar tablet devices or PC's for the Board of Directors to receive and review digital District Board agenda packets and other District documents, eliminating the need to copy and mail paper agenda packets weekly. At the Executive-Adminstrative-Organizational Committee the committee reviewed the Orange County Water District's (OCWD) one time reimbursement program for their Board of Directors. The OCWD Board approved this program at their meeting on March 16, 2011. The Committee suggested staff review other agencies' programs and consider a communications allowance whereby individual Board members select and purchase a device of their choosing and take responsibility for its maintenance and operations. Staff allocated funds in the proposed FY 2011/12 budget to support this program in the amount of $1,300 for each Director over the next fiscal year. This includes $1,000 toward an electronic device of their choice and $300 per year towards the data service of their choice for these purposes. Staff anticipates a net savings in operational expenses in staff time, paper, toner and gasoline over the three to five year life expectancy of these devices. With approval of the budget, staff will prepare a Resolution for the Committee and the Board to consider formalizing the Board of Directors Communications Allowance. ITEM NO. 3.5 AGENDA REPORT Meeting Date: June 21, 2011 Budgeted: N/A To: Executive-Administrative- Organizational Committee Funding Source: N/A From: Ken Vecchiarelli, General Manager Presented By: Ken Vecchiarelli, General Dept: Administration Manager Reviewed by Legal: No Prepared By: Cindy Botts, Management CEQA Compliance: N/A Analyst Subject: Draft Facilities Use Policy and Agreement SUMMARY: The Yorba Linda Water District currently allows the use of its facilities as a public service by non- profit, secular organizations. The Draft Facilities Use Policy and Agreement establishes guidelines and procedures to insure all groups using District facilities comply with District policies and procedures and that all users of these facilities are held financially responsible for damages and other costs incurred through their use. STAFF RECOMMENDATION: That the Committee consider the Draft Facilities Use Policy and Agreement and provide further direction and input to staff. Staff further recommends drafting a Resolution which formally establishes the Board Policy for Joint Use of District Facilities. DISCUSSION: The Draft Facility Use Agreement addresses the application process, reservation time line, and housekeeping security deposits, in addition to outlying the specifics of allowable facility users. The Draft Facilities Use Agreement is derived from a draft policy issued by ACWA-JPIA, but has not yet been reviewed by legal council. Additionally, at the April 19th meeting, the Committee asked staff to determine what possible changes might be needed in the policy, if the Board were to consider including a beer and wine clause. Staff worked with ACWA-JPIA to write a revised Facilities Use policy, which would allow beer and wine. Significant changes in the revised policy include the following: . Events involving alcohol will be considered on a case-by-case basis . Alcoholic beverages shall not be served to anyone under 21 years of age . The District will not be held responsible for any injuries caused as a result of alcoholic beverages being served . Liquor liability coverage of one million dollars ($1,000,000) per occurrence is required, in addition to general liability and automotive liability limits of one million dollars each, per occurrence. The cleaning deposit has also been increased from $100 to $250 for all events, regardless if alcohol is served. This deposit was changed based on comments received from the Committee members at the April 19, 2011 meeting. ATTACHMENTS: Name: Description: Type: 7020-11- XX Facilities Use Policy with and without Alcohol rev 06162011.doc Facilities Use Policy and Agreement Backup Material E Yorba Linda Water District Policies and Procedures Policy No.: 7020-11-XX Effective Date: August 1, 2011 Prepared By: Gina Knight, HR/Risk Manager Amelia Cloonan, Personnel Technician Applicability: District Wide POLICY: FACILITIES USE POLICY 1.0 PURPOSE A. The purpose of this policy is to establish guidelines and procedures to insure all groups using the facilities of the Yorba Linda Water District (Users) comply with all District policies and procedures and that all Users are financially responsible for any liability, damages or expenses arising out of such use. 2.0 POLICY A. It is the policy of the Yorba Linda Water District to allow the use of its facilities as a public service by non-profit/non-religious organizations. The Users' organization must be within the YLWD service area or provide services to YLWD customers. The YLWD service area includes the City of Yorba Linda, portions of the Cities of Placentia, Brea and Anaheim, and some areas of unincorporated Orange County. B. The use of District's facilities by non-profit groups will be limited to business meetings, training, educational, professional development or community service programs. Scheduling of facilities use will be on a first come, first served basis. C. The Yorba Linda Water District charges a nominal fee for the use of its facilities. Charging of fees by the User for entrance to District facilities or solicitation of contributions is prohibited. No products, services, food or beverages may be sold on District premises. D. Prior to any entry by User, the District must be furnished with a policy or certificate of comprehensive general liability insurance as detailed in Exhibit A. 1 1. The Yorba Linda Water District is not liable for accidental injury to persons or loss or damage of group or individual property. E. Limited events involving alcohol use will be considered on a case-by-case basis with the approval of the General Manager or designee. Applications for such events will be considered only if accompanied by appropriate proof of insurance coverage and any permits required by law. 1. Under no circumstance shall alcoholic beverages be served to anyone under the age of 21 years. 2. Liquor liability insurance coverage with the same limits and specifications as described for general liability insurance is required for all events at which alcoholic beverages are present or served. 3. Injuries caused to any person as a result of alcoholic beverages being served and/or consumed on District property shall be the sole responsibility of the organization, its sponsor or representative, who as a condition of signing the contract for the facility use agree to indemnify the District for any such injuries. F. The Yorba Linda Water District Administration building and other offices are non-smoking facilities. G. The Yorba Linda Water District shall not allow use of its public facilities by any person or organization that illegally discriminates on the basis of race, color, creed, marital status, sex, religion, national origin, ancestry or mental or physical disability. H. Any notice given by the User of its activities conducted at the District's facilities shall include the following disclaimer: "The Yorba Linda Water District neither supports nor endorses the cause or activities of organizations using the District's facilities. The District facilities are made available as a public service." 1. Service animals or police service dogs only will be allowed in District facilities. No other animals are permitted in District facilities. J. The Yorba Linda Water District reserves the right to deny any applicant's request for facilities use based on security and/or public safety concerns. K. The Yorba Linda Water District reserves the right to restrict parking to assigned areas of the District's parking lots. L. District personnel may enter and inspect the facilities at any time without notice. M. The District reserves the right to terminate use of the facilities by the User at any time and to further deny future use of the facilities to User. 2 N. The District General Manager has the authority to grant exemptions to these policy guidelines. 3.0 PROCEDURES: A. Reservations 1. Reservations for use of District facilities must be submitted in writing a minimum of two (2) weeks in advance. B. Application Procedure 1. An Application for Use of Yorba Linda Water District Facilities must be completed and submitted to the District for approval. (Exhibit C) 2. All Users of the Yorba Linda Water District facilities shall be financially responsible for personal injuries or property damage arising from the meeting or activities. 3. A reservation for meeting space is not confirmed until the User receives a copy of the contract signed by an authorized representative of the District. 4. A copy of the liquor liability insurance requirements (Exhibit B) will be provided to those Users who are granted approval by the District's General Manager to serve alcohol. C. Deposits/Payments Procedures 1. A clean-up deposit of $250.00 is required and shall be refunded if clean-up standards are met, as determined by District staff and its contracted janitorial service, and no damages are incurred. 2. An after-hours labor deposit will be charged to Users scheduling events outside of normal District business hours. Payment will be calculated at an hourly rate of one and one half times the normal pay rate for each District staff member required by the District to be in attendance on site during the User's event and for set up and clean up time before and after the event, if applicable and as determined by the General Manager or his designee. 3. Facilities User will be billed for damages exceeding the deposit. If damage does not exceed the deposit amount, a check will be refunded for the difference. Refunds will be mailed four (4) to six (6) weeks after conclusion of an event. 3 4.0 RESPONSIBILITIES A. It is the responsibility of each District employee- 1 . To carefully follow all the procedures outlined in this policy. 2. To cooperate with the Risk Manager to protect the health, safety and life of District employees and the public. 3. To cooperate with the Risk Manager to protect the property of the Yorba Linda Water District. 4. To comply with the procedures outlined in this policy in order to document any incidents. B. It is the responsibility of the Department Manager to ensure: 1. Their staff is versed in the procedures outlined in this policy and that their staff is aware of the importance of adhering to the policy and procedures. 2. The Risk Manager is made aware of any accidents or incidents impacting the District as soon as possible after the accident or incident, but no later than 24 hours after so appropriate documents, forms and statements may be gathered and forwarded to JPIA and legal counsel. C. It is the responsibility of the Risk Manager to: 1. Contact the General Manager or his designee to make them aware of any accidents or incidents that could cause an impact to the District. 2. Ensure contact is made with JPIA and/or legal counsel to apprise them of the possibility of any claims against the District. 3. Ensure all materials: incident reports, notes, forms, photographs, witness statements, etc., are forwarded to JPIA and/or legal counsel. D. It is the responsibility of the User to adhere to all the stipulations and requirements of this Facilities Use Policy, its Exhibits and Temporary Entry Permit. 5.0 EXHIBITS A. Risk Transfer Clauses B. Risk Transfer Clauses with Alcohol C. Application for Use of Facilities D. Temporary Entry Permit 4 E. Facilities Use Policy-Acknowledgement Form F. Employee's Acknowledgement Form APPROVED: Kenneth R. Vecchiarelli, General Manager Date &~o Y 5 7020-11-XX Exhibit A Yorba Linda Water District RISK TRANSFER CLAUSES FACILITIES USE AGREEMENTS Workers' Compensation Insurance - By his/her signature hereunder, Sponsor certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing the event. Indemnification - To the fullest extent permitted by law, Sponsor shall indemnify and hold harmless and defend the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers, and each of them from and against: 1. Any and all claims, demands, causes of action, damages, costs, expenses, losses or liabilities, in law or in equity, of every kind or nature whatsoever for, but not limited to, injury to or death of any person including the Yorba Linda Water District and/or Sponsor, or any directors, officers, employees, or authorized volunteers of the Yorba Linda Water District or Sponsor, and damages to or destruction of property of any person, including but not limited to, the Yorba Linda Water District and/or Sponsor and their directors, officers, employees, or authorized volunteers, arising out of or in any manner directly or indirectly connected with the event to occur under this agreement, however caused, regardless of any negligence of the Yorba Linda Water District or its directors, officers, employees, or authorized volunteers, except the sole negligence or willful misconduct of the Yorba Linda Water District or its directors, officers, employees, or authorized volunteers; 2. Any and all actions, proceedings, damages, costs, expenses, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Sponsor. 6 3. Any and all losses, expenses, damages, attorneys' fees, and other costs, including all costs of defense, which any of them may incur with respect to the failure, neglect, or refusal of Sponsor to faithfully perform all of its obligations under the agreement. Such costs, expenses, and damages shall include all costs, including attorneys' fees, incurred by the indemnified parties in any lawsuit to which they are a party. Sponsor shall defend, at Sponsor's own cost, expense and risk, any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against the Yorba Linda Water District or its directors, officers, employees, or authorized volunteers. Sponsor shall pay and satisfy any judgment, award or decree that may be rendered against the Yorba Linda Water District or its directors, officers, employees, or authorized volunteers, in any and all such suits, actions, or other legal proceedings. Sponsor shall reimburse the Yorba Linda Water District and its directors, officers, employees, or authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Sponsor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Yorba Linda Water District, or its directors, officers, employees, or authorized volunteers. GENERAL CONDITIONS Laws, Regulations and Permits - The Sponsor shall give all notices required by law and comply with all laws, ordinances, rules and regulations pertaining to the event. The Sponsor shall be liable for all violations of the law in connection with the event. Safety & Security - The Sponsor shall execute and maintain the event so as to avoid injury or damage to any person or property. Sponsor shall provide security for the event. A security plan shall be submitted to the Yorba Linda Water District twenty (20) days prior to the event which shall include the names of individuals assigned security duties, how they are to be identified as security personnel, and what instructions they have been provided. The security plan shall identify the person in charge and how said person will communicate with local law enforcement in an emergency. Commercial General Liability and Automobile Liability Insurance - The Sponsor shall provide and maintain the following commercial general liability and automobile liability insurance: 7 1. Coverage - Coverage for commercial general liability and automobile liability insurance shall be at least as broad as the following: a. Insurance Services Office (ISO) Commercial General Liability Coverage (Occurrence Form CG 0001) b. Insurance Services Office (ISO) Business Auto Coverage (Form CA 0001), covering Symbol 1 (any auto) 2. Limits - The Sponsor shall maintain limits no less than the following: a. General Liability - One million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the project/location (with the ISO CG 2503, or ISO CG 2504, or insurer's equivalent endorsement provided to the Yorba Linda Water District) or the general aggregate limit shall be twice the required occurrence limit. b. Automobile Liability - One million dollars ($1,000,000) for bodily injury and property damage each accident limit. 3. Required Provisions - The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: a. The Yorba Linda Water District, its directors, officers, employees, and authorized volunteers are to be given insured status (via ISO endorsement CG 2026 or insurer's equivalent for general liability coverage) as respects: liability arising out of activities performed by or on behalf of the Sponsors; products and completed operations of the Sponsor; premises occupied or used by the Sponsor; and automobiles owned, leased, hired or borrowed by the Sponsor. The coverage shall contain no special limitations on the scope of protection afforded to the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers. b. For any claims related to this event, the Sponsor's insurance shall be primary insurance as respects the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers. Any insurance, self-insurance or other coverage maintained by the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers shall not contribute to it. C. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers. 8 d. The Sponsor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. e. Each insurance policy required by this agreement shall state, or be endorsed to state, that coverage shall not be canceled by the insurance carrier or the Sponsor, except after thirty (30) days (10 days for non-payment of premium) prior written notice by U.S. mail has been given to the Yorba Linda Water District. Such liability insurance shall indemnify the Sponsor against loss from liability imposed by law upon, or assumed under contract by, the Sponsor for damages on account of such bodily injury (including death), property damage, and personal injury. The general liability policy shall cover bodily injury and property damage liability, owned and non-owned equipment, and blanket contractual liability. The automobile liability policy shall cover all owned, non-owned, and hired automobiles. All of the insurance shall be provided on policy forms and through companies satisfactory to the Yorba Linda Water District. Deductibles and Self-Insured Retentions - Any deductible or self-insured retention must be declared to and approved by the Yorba Linda Water District. At the option of the Yorba Linda Water District, the insurer shall either reduce or eliminate such deductibles or self-insured retentions. Acceptability of Insurers - Insurance is to be placed with insurers having a current A.M. Best rating of no less than A-:VII or equivalent or as otherwise approved by the Yorba Linda Water District. Workers' Compensation and Employer's Liability Insurance - The Sponsor shall cover or insure under the applicable laws relating to workers' compensation insurance, all of their employees working on or about the event, in accordance with the "Workers' Compensation and Insurance Act", Division IV of the Labor Code of the State of California and any Acts amendatory thereof. The Sponsor shall provide employer's liability insurance with limits no less than $1,000,000 each accident, $1,000,000 disease policy limit, and $1,000,000 disease each employee. Evidences of Insurance - Prior to execution of the agreement, the Sponsor shall file with the Yorba Linda Water District a certificate of insurance (Accord Form 25- S or equivalent) signed by the insurer's representative evidencing the coverage required by this agreement. Such evidence shall include an additional insured endorsement signed by the insurer's representative. Such evidence shall also include confirmation that coverage includes or has been modified to include Required Provisions a-e. 9 The Sponsor shall, upon demand of the Yorba Linda Water District, deliver to the Yorba Linda Water District such policy or policies of insurance and the receipts for payment of premiums thereon. Continuation of Coverage - If any of the required coverages expire during the term of this agreement, the Sponsor shall deliver the renewal certificate(s) including the general liability additional insured endorsement to the Yorba Linda Water District at least ten (10) days prior to the expiration date. Signature of Sponsor: Date: Print Name: Name of Organization: Y 10 7020-11-XX Exhibit B Yorba Linda Water District RISK TRANSFER CLAUSES FACILITIES USE - LIQUOR AGREEMENTS Workers' Compensation Insurance - By his/her signature hereunder, Sponsor certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing the event. Indemnification - To the fullest extent permitted by law, Sponsor shall indemnify and hold harmless and defend the Yorba Linda Water District, its directors, officers, employees or authorized volunteers, and each of them from and against: 1. Any and all claims, demands, causes of action, damages, costs, expenses, losses or liabilities, in law or in equity, of every kind or nature whatsoever for, but not limited to, injury to or death of any person including the Yorba Linda Water District and/or Sponsor, or any directors, officers, employees, or authorized volunteers of Yorba Linda Water District or Sponsor, and damages to or destruction of property of any person, including but not limited to, Yorba Linda Water District and/or Sponsor and their directors, officers, employees, or authorized volunteers, arising out of or in any manner directly or indirectly connected with the event to occur under this agreement, however caused, regardless of any negligence of Yorba Linda Water District or its directors, officers, employees, or authorized volunteers, except the sole negligence or willful misconduct of Yorba Linda Water District, or its directors, officers, employees, or authorized volunteers; 2. Any and all actions, proceedings, damages, costs, expenses, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Sponsor. 3. Any and all losses, expenses, damages, attorneys' fees, and other costs, including all costs of defense, which any of them may incur with respect to the failure, neglect, or refusal of Sponsor to faithfully perform all of its obligations under the agreement. Such costs, expenses, and damages shall include all costs, including attorneys' fees, incurred by the indemnified parties in any lawsuit to which they are a party. 11 Sponsor shall defend, at Sponsor's own cost, expense and risk, any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Yorba Linda Water District or its directors, officers, employees, or authorized volunteers. Sponsor shall pay and satisfy any judgment, award or decree that may be rendered against Yorba Linda Water District or its directors, officers, employees, or authorized volunteers, in any and all such suits, actions, or other legal proceedings. Sponsor shall reimburse Yorba Linda Water District or its directors, officers, employees, or authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Sponsor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Yorba Linda Water District, or its directors, officers, employees, or authorized volunteers. GENERAL CONDITIONS Laws, Regulations and Permits - The Sponsor shall give all notices required by law and comply with all laws, ordinances, rules, and regulations pertaining to the event. The Sponsor shall be liable for all violations of the law in connection with the event. Safety & Security - The Sponsor shall execute and maintain the event so as to avoid injury or damage to any person or property. Sponsor shall provide security for the event. A security plan shall be submitted to Yorba Linda Water District twenty (20) days prior to the event which shall include the names of individuals assigned security duties, how they are to be identified as security personnel, and what instructions they have been provided. The security plan shall identify the person in charge and how said person will communicate with local law enforcement in an emergency. Commercial General Liability, Liquor Liability and Automobile Liability Insurance - The Sponsor shall provide and maintain the following commercial general liability, liquor liability, and automobile liability insurance: 1. Coverage - Coverage for commercial general liability and automobile liability insurance shall be at least as broad as the following: a. Insurance Services Office (ISO) Commercial General Liability Coverage (Occurrence Form CG 0001) 12 b. Insurance Services Office (ISO) Business Auto Coverage (Form CA 0001), covering Symbol 1 (any auto) C. Insurance Services Office (ISO) Liquor Liability Coverage (Occurrence Form CG 0033) 2. Limits - The Sponsor shall maintain limits no less than the following: a. General Liability - One million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the project/location (with the ISO CG 2503, or ISO CG 2504, or insurer's equivalent endorsement provided to the Yorba Linda Water District) or the general aggregate limit shall be twice the required occurrence limit. b. Automobile Liability - One million dollars ($1,000,000) for bodily injury and property damage each accident limit. C. Liquor Liability - One million 1,000,000) per occurrence for bodily injury and property damage. If a form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the event (with the ISO CG 2503, or ISO CG 2504, or insurer's equivalent endorsement provided to the Yorba Linda Water District) or the general aggregate limit shall be twice the required occurrence limit 3. Required Provisions - The general liability, liquor liability, and automobile liability policies are to contain, or be endorsed to contain, the following provisions: a. The Yorba Linda Water District, its directors, officers, employees, and authorized volunteers are to be given insured status (via ISO endorsement CG 2026 or insurer's equivalent for general liability coverage) as respects: liability arising out of activities performed by or on behalf of the Sponsors; products and completed operations of the Sponsor; premises occupied or used by the Sponsor; and automobiles owned, leased, hired or borrowed by the Sponsor. The coverage shall contain no special limitations on the scope of protection afforded to the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers. b. For any claims related to this event, the Sponsor's insurance shall be primary insurance as respects the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers. Any insurance, self-insurance, or other coverage maintained by the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers shall not contribute to it. 13 C. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the Yorba Linda Water District, its directors, officers, employees, or authorized volunteers. d. The Sponsor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. e. Each insurance policy required by this agreement shall be endorsed to state that coverage shall not be canceled by the insurance carrier or the Sponsor, except after thirty (30) days (10 days for non- payment of premium) prior written notice by U.S. mail has been given to the Yorba Linda Water District. Such liability insurance shall indemnify the Sponsor against loss from liability imposed by law upon, or assumed under contract by, the Sponsor for damages on account of such bodily injury (including death), property damage, and personal injury. The general liability policy shall cover bodily injury and property damage liability, owned and non-owned equipment, and blanket contractual liability. The automobile liability policy shall cover all owned, non-owned, and hired automobiles. All of the insurance shall be provided on policy forms and through companies satisfactory to the Yorba Linda Water District. Deductibles and Self-Insured Retentions - Any deductible or self-insured retention must be declared to and approved by the Yorba Linda Water District. At the option of the Yorba Linda Water District, the insurer shall either reduce or eliminate such deductibles or self-insured retentions. Acceptability of Insurers - Insurance is to be placed with insurers having a current A.M. Best rating of no less than A-:VII or equivalent or as otherwise approved by the Yorba Linda Water District. Workers' Compensation and Employer's Liability Insurance - The Sponsor shall cover or insure under the applicable laws relating to workers' compensation insurance, all of their employees working on or about the event in accordance with the "Workers' Compensation and Insurance Act", Division IV of the Labor Code of the State of California and any Acts amendatory thereof. The Sponsor shall provide employer's liability insurance with limits no less than $1,000,000 each accident, $1,000,000 disease policy limit, and $1,000,000 disease each employee. 14 Evidences of Insurance - Prior to execution of the agreement, the Sponsor shall file with the Yorba Linda Water District a certificate of insurance (Acord Form 25-S or equivalent) signed by the insurer's representative evidencing the coverage required by this agreement. Such evidence shall include an additional insured endorsement signed by the insurer's representative. Such evidence shall also include confirmation that coverage includes or has been modified to include Required Provisions a-e. The Sponsor shall, upon demand of the Yorba Linda Water District, deliver to the Yorba Linda Water District such policy or policies of insurance and the receipts for payment of premiums thereon. Continuation of Coverage - If any of the required coverages expire during the term of this agreement, the Sponsor shall deliver the renewal certificate(s) including the general liability additional insured endorsement to the Yorba Linda Water District at least ten (10) days prior to the expiration date. Signature of Sponsor: Date: Print Name: Name of Organization: r 15 7020-11-XX Exhibit C Yorba Linda Water District Application for Use of Meeting Room Facilities Name of Organization or Group: Represented by: Name: Title: Address: Home phone: Work Phone: Cell Phone: Purpose of organization or group: Is the organization or group a non-profit and non-religious organization: Yes No Board room: Training room: YLWD Facility requested: Board &Training room EOC room: combined: Date(s) requested: Time requested: From: a.m./p.m. From: a.m./p.m. To: a.m./p.m. To: a.m./p.m. Number of Attendees: Will there be a charge for admission? Yes No Will any products or services be sold? Yes No Signed: Date: The following disclaimer must be included in any published announcement: "The Yorba Linda Water District neither supports nor endorses the cause nor activities of organizations using the District's meeting rooms, which are made available as a public service." I have read and understand the guidelines and checklist for using the Yorba Linda Water District's meeting room facilities: Print Name: Signature: Date: Approved for YLWD: 1717 E. Miraloma Avenue, Placentia, Ca 92870 Tel: (714) 701-3000 Fax: (714) 701-3038 16 7020-11-XX Exhibit D Yorba Linda Water District Temporary Entry Permit Permission is given to: To enter the Yorba Linda Water District premises for the purpose of the event described as: for a period commencing: 200 , and ending , 200 , between the hours of a.m./p.m. and a.m./p.m. The permission for entry is given under the following conditions: 1. The Permit is limited as specified above. 2. User shall comply with, be subject to, and cause its employees, officers, agents, representatives, licensees, volunteers and invitees to comply with and be subject to all terms and conditions of this Temporary Entry Permit. User will comply with any and all instructions and directions of District representatives. All of User's representatives will be continuously under the control of (name of District representative) Every person entering the District's facilities under this permit shall be considered to be acting as User's agent and shall enter at his/her own risk. 3. The Yorba Linda Water District ("District") makes no representations that the facilities are fit for any particular use, including User's intended purpose specified above. Nor does the District represent that the facilities are free from defects, conditions or risks. User has inspected, or will inspect the facilities and accepts the facilities "as is". The District shall have no duty to inspect the facilities or to warn any person of any latent or patent defect, condition or risk that may be encountered in the exercise of rights under this permit. 17 4. Upon expiration or termination of this permit, User shall restore the premises to the condition they were in prior to User entry. User agrees to be liable for and to pay the District for the cost of repairing all damage of any kind whatsoever to the facilities and any District property, landscaping and structures, including damage and expense from loss of use thereof, arising from or related to any acts or omissions of User or User's representatives, unless the foregoing are held by a court of competent jurisdiction to have been caused solely by the gross negligence or willful misconduct of the District. 5. The District does not charge a fee for the use of its facilities. Charging of fees by applicant for entrance to the facilities or the solicitation of contributions is prohibited. No products, services, food or beverages may be sold. 6. To the fullest extent permitted by law, User agrees to be solely responsible for any and all injuries, damages and claims to persons or property arising out of its use of the Yorba Linda Water District's facilities except for any such claims arising out of the sole negligence or willful misconduct of the Yorba Linda Water District or its directors, officers, employees or authorized volunteers. User agrees to defend, hold harmless and indemnify the Yorba Linda Water District, its directors, officers, employees or authorized volunteers against any and all such injuries, damages and claims. This indemnification agreement shall not be restricted to any insurance proceeds. 7. User shall provide and maintain general liability insurance with limits of at least one million dollars ($1,000,000) per occurrence ($2,000,000 general aggregate, if used) for bodily injury, personal injury and property damage arising out of the activities and properties described herein. Coverage shall include contractual liability covering the User's obligations in paragraph 6. Coverage shall not be limited in any way with respect to host liquor liability coverage. The general liability coverage shall give the Yorba Linda Water District, its directors, officers, employees and authorized volunteers insured status using ISO endorsement CG2026 or equivalent. User shall provide the District with a certificate of insurance and additional insured endorsement before scheduled use. Such insurance shall be primary, and any insurance, self-insurance or other coverage maintained by the District, its directors, officers, employees or authorized volunteers shall not contribute to it. Coverage is to be placed with a carrier with an AM Best rating of no Less than A-: VII or equivalent or as otherwise approved by the District. The District will not be responsible for any costs of premiums or other charges for such insurance. Nothing in this paragraph shall limit User's obligation under the other provisions of this permit. 18 8. User shall insure, or be a qualified self-insured, with respect to the applicable laws relating to workers' compensation coverage (California Labor Code Section 3700) for all User's employees working on or about the District facilities. User shall provide the District with a certificate of Worker's Compensation and Employer's Liability insurance coverage to be placed with a carrier with an A.M. Best rating of no less than A-:VII, or equivalent, or as otherwise approved by the District. The employer's liability limit shall be no less than $1,000,000 each accident or disease. 9. If any of the insurance coverages in paragraph 7, 8 and 9 expire during the term of this Permit, the User shall deliver the renewal certificate, including the general liability additional insured endorsement to the District at least ten (10) days prior to the expiration date. 10. This Permit shall not be transferred or assigned by User. 11. This Permit is revocable at any time at the sole option and discretion of the District. User agrees to peacefully surrender the premises upon written or oral demand given by the District or its authorized representatives to User or any of User's representatives. 12. The obligations and liabilities of User under Paragraph 7 of this Permit shall survive the expiration or termination of this Permit. By: Yorba Linda Water District Title Name: Date: By: Authorized Representative Title Name: Date: Organization: 19 7020-11-XX Exhibit E Yorba Linda Water District Facilities Use Policy Acknowledgement Form I acknowledge that I have received and read the provisions contained in the Yorba Linda Water District's Facilities Use Policy. I understand it is my responsibility to consult with the Yorba Linda Water District's representative if I have any questions that are not answered in the Policy. I also understand the provisions in this Policy are guidelines and may not address all circumstances that may arise. In such case, the District's Risk Manager shall apply the Policy based on factors including but not limited to past practices and rules of statutory interpretation. I understand that it is my responsibility to ensure the provisions contained in this Policy are followed. NAME (printed): SIGNATURE: ORGANIZATION: DATE: 20 7020-11-XX Exhibit F Yorba Linda Water District Facilities Use Policy Acknowledgement Form I acknowledge that I have received and read the provisions contained in this Facilities Use Policy. I understand that it is my responsibility to consult my supervisor or the Human Resources Department if I have any questions that are not answered in the Policy. I also understand that the provisions in this Policy are guidelines and may not address all circumstances that may arise. In such case, the District's Risk Manager shall apply the policy based on factors including but not limited to past practices and rules of statutory interpretation. s EMPLOYEE'S NAME (printed): V EMPLOYEE'S SIGNATURE: DATE: Distribution: Original to Personnel File Copy: Employee 21 ITEM NO. 3.9 AGENDA REPORT Meeting Date: June 21, 2011 Subject: General Counsel's Monthly Summary Report ATTACHMENTS: Name: Dosciiption: a ype: Kidman Billing Chart Summary.xlsx Kidman Behrens Summary Chart Backup Material YORBA LINDA WATER DISTRICT CURRENT FISCAL YEAR 2010-2011 MONTHLY SUMMARY BILLING CHART BILLING MONTH: May 2011 Matter Current Billing Total Billed to Date Total Billed 2009-2010 Name May 31, 2011 Current Fiscal Year Prior Fiscal Year CONSTRUCTION CONTRACTS $6,964.27 $7,324.60 OCWD ANNEXATION $2,447.50 $5,664.81 FREEWAY COMPLEX FIRE LITIGATION $24,200.00 $88,166.71 $61,733.97 NON-CONSTRUCTION AGREEMENTS $4,113.50 $8,276.29 $15,384.92 CELL TOWERS $3,417.50 $2,033.40 WATER RATES/WATER CONSERVATION $14,746.50 $15,159.35 EMPLOYEE DISCIPLINE APPEAL $3,102.50 $3,102.50 $0.00 RETAINER $2,000.00 $22,000.00 $25,000.00 MISCELLANEOUS ITEMS $247.48 $1,061.72 $0.00 SUBTOTAL $33,663.48 $150,182.99 $132,301.05 Other Allocated Expenses Not Pertaining to Current Year Open Projects 2010-2011 $0.00 $0.00 $39,331.03 TOTAL $33,663.48 $150,182.99 $171,632.08 Kidman, Behrens & Tague LLP Summary of Monthly and FYTD Charges Month of May-11 General Services 33,663.48 Capital Project Related Servcies 19,249.74 Total - May $52,913.22 YTD through May-11 General Services 150,182.99 Capital Project Related Servcies 60,727.59 Total - YTD $210,910.58