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Home My WebLink About2012-08-07 - Personnel-Risk Management Committee Meeting Agenda Packet Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT PERSONNEL-RISK MANAGEMENT COMMITTEE MEETING Tuesday, August 7, 2012, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 COMMITTEE STAFF Director Michael J. Beverage, Chair Steve Conklin, Engineering Manager Director Ric Collett Gina Knight, Human Resources Manager 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. ACWA-JPIA Workers' Compensation Program Renewal for FY 2012/13 Recommendation: That the Committee recommend the Board of Directors approve the ACWA-JPIA Workers' Compensation Program renewal and deposit premium estimate for July 1, 2012 - June 30, 2013 at the Board of Directors meeting scheduled for August 23, 2012. 2.2. ACWA/JPIA General Liability Insurance Deposit Premium for the October 1 , 2012 to September 30, 2013 Policy Year and Retrospective Allocation Point Recommendation: That the Committee recommend the Board of Directors approve the ACWA/JPIA General Liability Insurance deposit premium for the policy year October 1, 2012 through September 30, 2013 in the amount of$215,272 and continue with the Retrospective Allocation Point of$25,000. 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. Amending Employee Compensation Letters 3.2. Request for Proposals for an Organizational Efficiency Study 3.3. Human Resources/Risk Management/Safety Activity and Status of Recruitments and Budgeted Positions 3.4. Future Agenda Items and Staff Tasks 4. ADJOURNMENT 4.1. The next Personnel-Risk Management Committee meeting will be held Tuesday, September 11 , 2012 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: August 7, 2012 Budgeted: Yes To: Personnel-Risk Management Cost Estimate: $109,021 Committee Funding Source: Operating Funds From: Steve Conklin, Engineering Account No: Various Manager Presented By: Gina Knight, HR/Risk Manager Dept: Human Resources/Risk Management Reviewed by Legal: N/A Prepared By: Gina Knight, HR/Risk Manager CEQA Compliance: N/A Subject: ACWA-JPIA Workers' Compensation Program Renewal for FY 2012/13 SUMMARY: The ACWA Joint Powers Insurance Authority (JPIA) manages the District's Workers' Compensation program. In addition, the District is a member of JPIA's liability and property insurance programs. JPIA offers a multiple program discount for agencies enrolled in more than one program. In the case of Workers' Compensation premiums, the District will receive a 5% discount in the upcoming year. The discount is included in the invoice. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors approve the ACWA-JPIA Workers' Compensation Program renewal and deposit premium estimate for July 1, 2012 - June 30, 2013 at the Board of Directors meeting scheduled for August 23, 2012. DISCUSSION: ACWA-JPIA submitted the Workers' Compensation insurance deposit premium estimate for fiscal year 2012-2013. The deposit premium page is attached for the Committee's review. This year the JPIA's Executive Committee approved renewal of the program with no change in the rates charged for each of the payroll classifications, effective July 1 , 2012. The estimated deposit premium for the period July 1 , 2012 through June 30, 2013 is $104,393.56. The premium is based on actual payroll. Last year the deposit premium estimate was $109,021 .00. The experience modification factor (e-mod) is 0.81 . This is lower than last year's e-mod factor which was 0.90. The workers' compensation costs are not listed as a line item in the approved Budget but are included in the Personnel costs section. PRIOR RELEVANT BOARD ACTION(S): Each year at this time, the Workers' Compensation deposit premiums are presented to the Board of Directors for review. ATTACHMENTS: Description: Type: ACWAJPIA Workers Comp.pdf Backup Material Backup Material ACWAIJPIA WORKERS' COMPENSATION PROGRAM DEPOSIT PREMIUM ESTIMATE FOR 7/112012 - 7/1/2013 Yorba Linda Water District P.O. Box 309 NUMBER OF EMPLOYEES: 79 Yorba Linda, CA 92885-0309 ESTIMATED ANNUAL ESTIMATED CLASS RATE AT PAYROLL FOR PREMIUM(ROUNDED CLASSIFICATION CODE 7/1/2012 7/1/2012-7/1/2013 TO NEAREST$) Waterworks Operations 7520 0.051 X $2,347,671.79 = $119,731 Salesmen 1 Meter Readers 8742 0.0116 X $1,298,635.33 $15,064 Clerical Office 8810 0.0101 X $1,746,157.97 = $17,636 TOTAL $ 5,392,465.09 $ 152,432 ECONOMY OF SIZE FACTOR X 0.89 DISCOUNTED PREMIUM $ 135,664.15 EXPERIENCE MODIFICATION FACTOR X 0.81 MODIFIED PREMIUM $ 109,887-96 JPIA MULTIPLE PROGRAM DISCOUNT(3 PROGRAMS=5.00%) X 0.95 TOTAL ESTIMATED PREMIUM FOR PERIOD 7/1/2012-711!2013 $ 104,393.56 THE MINIMUM RAP FOR THE PREMIUM SHOWN ABOVE IS$15,000.00 YOUR CURRENT RAP IS$15,000.00 IF YOU WISH TO SELECT A HIGHER RAP,PLEASE CONTACT MEMBER SERVICES THIS IS NOT A BILL-DO NOT PAY THE ESTIMATED PREMIUM SHOWN ABOVE ITEM NO. 2.2 AGENDA REPORT Meeting Date: August 7, 2012 Budgeted: Yes Total Budget: $220,000 To: Personnel-Risk Management Cost Estimate: $215,272 Committee Funding Source: Water Operating Fund From: Steve Conklin, Engineering Account No: 7020-0690-20 Manager Presented By: Gina Knight, HR/Risk Manager Dept: Administration Reviewed by Legal: No Prepared By: Amelia Cloonan, Personnel CEQA Compliance: N/A Technician Subject: ACWA/JPIA General Liability Insurance Deposit Premium for the October 1 , 2012 to September 30, 2013 Policy Year and Retrospective Allocation Point SUMMARY: In accordance with the District's Risk Management Policy, staff is required to present all insurance premiums to the Board of Directors for approval. Attached for the Committee's review is ACWA/JPIA's general liability insurance deposit premium for the period October 1 , 2012 through September 30, 2013. STAFF RECOMMENDATION: That the Committee recommend the Board of Directors approve the ACWA/JPIA General Liability Insurance deposit premium for the policy year October 1 , 2012 through September 30, 2013 in the amount of $215,272 and continue with the Retrospective Allocation Point of $25,000. DISCUSSION: Each August the District receives the liability insurance premium from ACWA-JPIA for the upcoming policy year. The deposit premium is for the period October 1, 2012 through September 30, 2013. This year's premium is $215,272 representing an 11% increase from last year's, which was $193,296. In 2010 and 2009, the District's premiums were $175,724 and $166,522, respectively. The deposit premium is due September 1 , 2012, and must be paid or postmarked by September 30, 2012 or be subject to interest charges. The main reason for the increase in rates is due to the increase in the District's e-mod factor. In this premium year, the e-mod factor is 1 .3600 whereas last year the e-mod factor was 1 .3000. JPIA calculated the e-mod using three consecutive years worth of losses. The three year period moves each year with the earliest year dropping off and a new year coming on. Therefore, a particular loss will affect the e-mod calculation for a total of three years. Losses below $15,000 or the Retrospective Allocation Point (hereinafter referred to as a "deductible" or RAP), whichever is less, are not used in the e-mod calculation. In addition, all losses are capped at $75,000. The District's deductible is $25,000. The deductible is that portion of the loss for which the District is ultimately responsible. It also designates the point at which the District begins to participate in the pooled losses. When the retrospective premium adjustment is calculated (45 months after the first coverage period), all losses and portions of losses are deducted from the deposit premium. The remaining losses go into the pool and are shared by all the members of the program. Each member is charged a proportionate share of the total losses in the pool according to its deposit premium. Adjustments continue annually thereafter until all claims in the pool for that specific policy year are closed. Finally, if the costs are below the deposit premium, a debit is applied against the retrospective premium adjustment fund. The retrospective premium adjustment fund was created in 1999 to stabilize retrospective premium adjustments and reduce or eliminate billing members for prior policy years by banking member refunds. The funds are used to offset any amounts due to the member for the prior years. The retrospective premium adjustment fund was established with a cap of 50% of the basic premium. Once a member's fund balance exceeds 50% of its deposit premium, the difference is refunded to the member. The District will not receive a refund this year. The District has the option of increasing the deductible from $25,000 to $50,000 or $100,000. Staff does not recommend changing the RAP, since it is extremely difficult to predict the number of future claims that may be filed against the District and other agencies. The minimum deductible is financially safer if an agency experiences a high frequency of losses. The District identified $220,000 in the Fiscal Year 2012-2013 adopted budget for the annual liability insurance premium. PRIOR RELEVANT BOARD ACTION(S): The annual liability insurance deposit premiums are presented to the Board of Directors each August/September. ATTACHMENTS: Name: Description: Type: ACWAJPIA General Liability.pdf Backup Material Backup Material ASSOCIATION OF CALIFORNIA WATER AGENCIES API JOINT POWERS INVOICE 1NSURANCE AUTHORITY AUTO & GENERAL LIABILITY PROGRAM FOR POLICY-YEAR 10!112012 - 09130/2013 RECEIVED AUG - 1 2012 Member # Y002 Yorba Linda Water District YORBA LINDA WATER DISTRICT P.O. Box 309 Yorba Linda, CA 92885-0309 Invoice Date: July 31, 2012 DESCRIPTION: Deposit Premium for the 101112012-13 Policy Year $268,519 Amount taken from RPA Stabilization Fund 53,247 Amount Due: (September 1, 2012) SUBJECT TO: PENALTY & INTEREST IF NOT PAID OR POST MARKED BY SEPTEMBER 30, 2012 --- -- ---- - --- ---- - - ------- ----- -- - - - --- - - - -- --- - -- -- ---- ------------ MAKE CHECK PAYABLE TO: ACWAIJOINT POWERS INSURANCE AUTHORITY PO Box 619082 Roseville, CA 95661-9082 Pay before Sept.30,2012 to avoid penalty P.O. Box 619082, Roseville, CA 95661-9082- (800) 231-5742 -www.acwajpia.cmn ACWAIJOINT POWERS INSURANCE AUTHORITY LIABILITY PROGRAM E-MODIPREMIUM CALCULATION WORK SHEET AT 7/24/2012 Yorba Linda Water District 101112012-2013 ANNUAL ESTIMATED PAYROLL:$5,665,480 LOSSES FOR PERIOD 10/1/2008 THRU 9/30/2011 RETRO ALLOCATION POINT: $25,000 AMOUNT USED IN CLAIMS OVER E-MOD CALC YEAR CLAIM 0 TOTAL LOSS RAP RAP(or$15,000)' (Capped at$75,000) 101112008-2009 09-0419 $6,938,833.55 $25,000 $6,938,633.55 $75,000.00 101112009-2010 10-1543 $83,558.56 $25,000 $83,558.56 $75,000.00 101112009-2010 11-0006 $1,001.55 $25,000 $0.00 $0.00 101112009-2010 11-0613 $30,000.00 $25,000 $30,000.00 $30,000.00 101112010-2011 12-0468 $217.94 $25,000 $0.00 $0.00 101112010-2011 12-0669 $100.00 $25,000 $0.00 $0.00 1011/2010-2011 12-0418 $1,000.00 $25,000 $0.00 $0.00 THREE YEAR LOSS TOTAL $7,054,511.60 $7,052,192.11 $180,000.00 EXPERIENCE MODIFICATION FORMULA STEP 1 $2,250 + [ Payroll x PIR Modifier x ( 7 1 Log of Payroll ? ) Basic Premium $2,250 + ( $5,665,480 x 0.080608 x ( 7 1 15.549902 } ) _ $207,832 STEP 2 ( Three Year Loss Total 1 3 J 1 Basic Premium = District Rate ( $180,000 1 3 ) 1 $207,832 = 0.2887 STEP 3 District Rate ! Average Rate = Unweighted Modification Factor 0.288695 1 0.136986 = 2.107478 STEP 4 Square root of ( Basic Premium 1 $2,000,000 ) = Credibility Factor Square root of ( $207,832 1 $2,000,000 ) - 0.3224 STEP 5 { Credibility Factor x Unweighted Modification Factor ) + ( 1.0 - Credibility Factor ) = E-MOD { 0.3224 x 2.1075 } + ( 1.0 - 0.3224 ) = 1.3600 DEPOSIT PREMIUM FORMULA STEP 1 Basic Premium x E-MOD = Gross Premium $207,832 x 1.3600 = $282,652 STEP 2 (3 Programs=5.00%) Gross Premium x Multiple Program Discount Factor = Deposit Premium + Adjustment = Adjusted Deposit Premium $282,652 x 0.95 = $268,519 + $0 = $268,519 THE MINIMUM RAP FOR THE PREMIUM SHOWN ABOVE IS$25,000 YOUR CURRENT RAP 15$25,000 IF YOU WISH TO SELECT A HIGHER RAP,PLEASE CONTACT MEMBER SERVICES 'AMOUNT DERIVED BY DETERMINING THE LOWER OF THE CHOSEN RAP VS$15,000. 1F TOTAL LOSS'COLUMN EXCEEDS THIS FIGURE THEN THE TOTAL LOSS IS ENTERED HERE. ITEM NO. 3.1 AGENDA REPORT Meeting Date: August 7, 2012 Budgeted: Yes To: Personnel-Risk Management Committee Funding Source: All Funds From: Steve Conklin, Engineering Manager Presented By: Gina Knight, HR/Risk Manager Dept: Human Resources/Risk Management Reviewed by Legal: Yes Prepared By: Gina Knight, HR/Risk Manager Subject: Amending Employee Compensation Letters SUMMARY: On April 12, 2012, at a Regular Board of Directors meeting, the Board adopted both Resolution No. 12-07 & Resolution No. 12-08, Employee Compensation Letters and Pay Plans for the Management and Supervisory/Confidential employee groups. DISCUSSION: At a Department Managers' meeting, staff discussed the implementation of several provisions generated from the adoption of the Employee Compensation Letters and Pay Plans for both Management and Supervisory/Confidential employee groups. It appeared that one provision needed further clarification. Staff agreed that the language related to said provision should be revised to avoid any misunderstandings of the District's intent. Section XXI of both Employee Compensation Letters read as follows: Effective July 1 , 2012, the District will match dollar for dollar not to exceed 2% of an employee's salary per year of his/her deposits in a Deferred Compensation Plan. Staff indicated that the above language would create an administrative challenge to track for each affected employee. Staff suggested that the 2% be applied to each employee's bi-weekly salary. Resolution No. 12-XX, amends the above language to read as follows for Section XXI of each Employee Compensation Letter: Effective July 1 , 2012, the District will match dollar for dollar not to exceed 2% salary earned per payroll period of an employee's salary or the employee's actual amount of deferred compensation per payroll period, whichever is lesser. ATTACHMENTS: Name: Description: Type: Resolution No 12-XX.docx Resolution No. 12-XX Backup Material Management Compensation Letter - Exhibit A-Final FYs 2012 MANAGEMENT Compensation Letter Backup Material 2015-REVISED-7-26-2012.doc SUPERVISORY CONFIDENTIAL Compensation Letter Exhibit A - Confidential-Supervisory Compensation Letters FYs 2012-2015-REVISED-7-26-2012.doc 12-08 Backup Material RESOLUTION NO. 12-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING RESOLUTION NOS. 12-07 AND 12-08 TO CLARIFY THE METHOD OF DISTRICT CONTRIBUTIONS TO EMPLOYEE DEFERRED COMPENSATION PLANS WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Employee Compensation Letters for Management, Supervisory, and Confidential Employees for Fiscal Years 2012-2015; and WHEREAS, it is the desire of the Board of Directors to amend these letters to clarify the method of District contributions to a deferred compensation plan for these employees. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Section XXI of the Management Employee Compensation Letter for Fiscal Years 2012-2015 incorporated as Exhibit "A" of Resolution No. 12- 07 be amended to read: XXI. Effective July 1, 2012, the District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Management Employee's salary or the employee's actual amount of deferred compensation per payroll period, whichever amount is lesser. Section 2. That Section XXI of the Supervisory and Confidential Employee Compensation Letter for Fiscal Years 2012-2015 incorporated as Exhibit "A" of Resolution No. 12-08 be amended to read: XXI. Effective July 1, 2012, the District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Supervisory and Confidential Employee's salary or the employee's actual amount of deferred compensation per payroll period, whichever amount is lesser. PASSED AND ADOPTED this 26th day of July 2012 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Resolution No. 12-XXAmending Resolution Nos. 12-07 and 12-08 1 Phil Hawkins, President Yorba Linda Water District ATTEST: , Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law, LLP Resolution No. 12-XXAmending Resolution Nos. 12-07 and 12-08 2 Exhibit A Resolution No. 12-07 Employee Compensation Letter And Pay Plan for Management Employees Fiscal years: 2012-2015 I. The General Manager shall prepare an Employee Compensation Letter for consideration by the Board of Directors. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Management Employee Group (Exhibit B). II. Effective July 1, 2012, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2012-2013. III. Effective July 1, 2013, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2013-2014. IV. Effective July 1, 2014, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2014-2015. V. The District's current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. VI. Effective July 1, 2012, all Management Employees shall pay 43% of the 7% statutory CalPERS employee contribution rate to CalPERS (equivalent to 3% of compensation). VII. Effective July 1, 2013, all Management Employees shall pay 71% of the 7% statutory CalPERS employee contribution rate to CalPERS (equivalent to 5% of compensation). VIII. Effective July 1, 2014, all Management Employees shall pay 100% of the statutory CalPERS employee contribution rate to CalPERS. Individuals hired by the District on or after January 26, 2012, the date Resolution No. 12-01 was adopted, shall be enrolled in the 2% @ 60 retirement formula and shall pay 100% of the statutory CalPERS employee contribution rate to CalPERS. All payments will be credited to the employee's individual account with CalPERS. IX. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual Management Compensation Letter FYs 2012/2015 Revised 7-26-2012 gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. X. Each employee will be annually reviewed on a one-year interval following completion of their probationary period. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an employee who receives an exceeds job expectations evaluation, shall be allowed to move up to two (2) steps. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. XI. All new hires shall be subject to a twelve (12) month probationary period. Such new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to successful completion of six (6) months of service. An existing employee who has been promoted to a new position will be required to serve a six (6) month promotional probationary period in the new position. XI 1. Management Employees shall accrue vacation leave time with pay as follows.. Duration of Continuous Hours Accrued per Pay Period Regular Employment During 1 st through 60th month 3.077 hrs = 2.0 weeks/yr During 61 st through 120th month 4.615 hrs = 3.0 weeks/yr During 121 st through 180th month 5.384 hrs = 3.5 weeks/yr During 181 st through 240th month 6.153 hrs = 4.0 weeks/yr During 241St month and thereafter 6.922 hrs = 4.5 weeks/yr XIII. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Management Employee under age 70, on the first day of the month following their date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Management Employees may increase the coverage up to five time's annual salary not to exceed $300,000 by authorizing the additional premium to be deducted from his/her salary. XIV. The District shall pay 100% of the premium for hospital and medical insurance for all Management Employees who work in excess of 30 hours Management Compensation Letter FYs 2012/2015 Revised 7-26-2012 per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Management Employee dependent coverage for covered employees with one dependent or up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management employee shall pay the cost of the difference in premium, to be deducted from his/her salary to cover the employee's share of the dependent coverage. The Management Employees shall have the option of selecting a District-designated Health Maintenance Organization ("HMO"). The District contribution for HMO coverage will be in accordance with this paragraph. XV. The District shall pay 100% of the premium for dental insurance for all Management Employees who work 30 hours or more per week, after they have worked for two calendar months and up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management Employees with one dependent or up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Management Employees shall pay the cost of the difference in premium, to be deducted from his/her salary. The Management Employees shall have the option of selecting "Delta Care" with the contribution for "Delta Care" to be in accordance with this paragraph. XVI. District shall pay 100% of the premium for vision insurance for Management Employees who work more than 30 hours per week, on the first day of the month following their date of hire and up to 2/3 of the additional premium toward dependent coverage for covered Management Employees with one dependent or up to 2/3 of the additional premium toward dependent coverage for covered Management Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Management Employee shall pay the cost of the difference in premium, to be deducted from his/her salary. XVII. For a period of time which is equivalent to one (1) year or pro-ration thereof on a monthly basis for each three (3) years of service to the District or pro- ration thereof on a quarterly basis, and subject to carrier approval, the District shall pay the amounts provided in the paragraphs XIV, XV and XVI of this agreement for any Management Employee who was employed by the District on or before December 8, 2011, the date Resolution No. 11-22 was adopted and who retires from the District. Management Compensation Letter FYs 2012/2015 Revised 7-26-2012 To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete years of service with the District, must provide ninety (90) days notice of intent to retire must remain in a retired status and must retire from the District in good standing. When the Management retiree or his/her spouse reaches ages 65, and is eligible for Medicare, the coverage will convert to Medicare Supplement for the remainder of the benefit period. For purposes of this Agreement, retired status means that the Management Employee shall not work for compensation for more than nine hundred sixty (960) hours in any fiscal year (July 1 through June 30). The District shall require a Management Employee to certify under penalty of perjury that the Management Employee has remained on retired status and/or to submit to such additional verification, as the District deems necessary to demonstrate retired status. The retired Management Employee must make any contribution required of a regular Management Employee pursuant to paragraph XIV, XV and XVI prior to the first day of the month in which coverage is to be extended. Failure of a Management Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. Management Employees hired after the adoption of Resolution 11-22 (12- 8-2011) shall be ineligible to receive this benefit. A Management Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of his final salary for 3/8 of his/her accumulated days of sick leave, if any, at the time of separation from active employment. The remaining 5/8 of his/her accumulated days of sick leave will be converted into CaIPERS service credit. If the Management Employee should die, his/her estate shall be entitled to such payment. XVIII. Management Employees who are laid off from District employment after being employed by the District for five (5) or more complete years of continuous regular employment, shall be compensated for accumulated, unused sick leave above 400 hours as follows: YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% Management Compensation Letter FYs 2012/2015 Revised 7-26-2012 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XIX. To the extent possible, the District shall extend its current plan under Section 125 of the Internal Revenue Code to cover Management Employees. XX. The District shall provide a long-term disability plan for Management Employees which has a 90-day elimination period and provides at least sixty percent (60%) of salary for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XXI. Effective July 1, 2012, the District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Management Employee's salary or the employee's actual amount of deferred compensation per payroll period, whichever amount is lesser. XXII. Management Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this employee compensation letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. XXIII. In situations where a Management Employee has been injured in a non- duty accident and his/her disability leave exceeds one calendar month or the total of his/her accumulated leaves, including sick leave, paid time off and vacation, that portion of the leave exceeding 30 days or the total of accumulated leaves, whichever is more, shall constitute a break in service and his/her merit review dates and anniversary date will be adjusted accordingly. XXIV. The District will pay up to a total of $2,000 annually to establish and administer a tax-advantaged flexible benefit plan, and a total of $5,000 annually to establish a tax advantaged dependent care plan. Plans will conform to the requirements of Section 125 of the Internal Revenue Code, and permits Management Employees to convert their share of insurance premiums, un-reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. Savings to the District through reductions to the payroll and worker's compensation tax base will accrue to the District and offset the costs of establishing and administering this program. Management Compensation Letter FYs 2012/2015 Revised 7-26-2012 XXV. The District shall reimburse Management Employees for sums paid to the appropriate agencies for obtaining, or renewing treatment and/or distribution certificates, and other professional certifications, registrations and job related training. XXVI. Management Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00, provided that the boots are from a list pre-approved by the General Manager or his/her designee. The difference between $200.00 and the amount actually used may be carried over for one year and combined with a subsequent allocation for boot reimbursement. XXVII. The District shall provide educational reimbursement to Management Employees for costs of tuition, fees, books and parking relating to educational courses taken and completed at accredited institutions at a rate not to exceed standard resident fees as charged by the California State University. Course work must be job related as determined and approved in advance by the General Manager. Proof of payment and successful completion of the course must accompany the reimbursement request on a form provided by the District. Management Employee shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee's closing check. Any remaining non- reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. XXVIII. Management Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that the Management Employee takes a minimum of one-half the vacation time to which he/she is entitled within the same annual period of the sold vacation time. A member who has been employed by the District for more than one year may also buy from the District up to an additional forty (40) hours of vacation time within any calendar year for use during the same calendar year, provided that full and complete payment has been made for the purchased vacation time by salary modification prior to use of the vacation time. It is expressly understood that this benefit is provided at the sole discretion of the District and shall automatically terminate upon the Management Compensation Letter FYs 2012/2015 Revised 7-26-2012 expiration of this Management letter unless an extension is expressly agreed to by the District. XXIX. Management Employees will be entitled to either a District provided vehicle or a car allowance of $400.00/month as determined by the General Manager. The Engineering Manager, Finance Manager, IT Manager and Human Resources Manager positions shall receive a car allowance of $400.00 per month. XXX. Management Employees shall receive a maximum of forty (40) hours of administrative leave with pay each fiscal year. Unused administrative leave time at the end of each fiscal year, June 30, will be paid during the following month of July with said time being calculated at the employee's then straight time hourly rate. There will be no carry-over of administrative leave time to the next fiscal year. XXXI. The Holiday schedule attached hereto as Exhibit F shall be in effect for full- time Management Employees covered by this Management letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Management Employee normally would have worked other than for the holiday. For those Management Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday and a holiday falling on a Sunday, shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within 12 months following the accrual of each floating holiday. In order to be eligible for holiday pay, a Management Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. The term of this Compensation Letter for Management Employees is for the period of July 1, 2012 to June 30, 2015. Date General Manager Management Compensation Letter FYs 2012/2015 Revised 7-26-2012 Exhibit A Resolution No. 12-08 Employee Compensation Letter And Pay Plan for Supervisory and Confidential Employees Fiscal years: 2012-2015 I. The General Manager shall prepare an Employee Compensation Letter for consideration by the Board of Directors. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Supervisory and Confidential Employee Group (Exhibit B). II. Effective July 1, 2012, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2012-2013. III. Effective July 1, 2013, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2013-2014. IV. Effective July 1, 2014, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2014-2015. V. The District's current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. VI. Effective July 1, 2012, all Supervisory and Confidential Employees shall pay 43% of the 7% statutory CalPERS employee contribution rate to CalPERS (equivalent to 3% of compensation). VII. Effective July 1, 2013, all Supervisory and Confidential Employees shall pay 71% of the 7% statutory CalPERS employee contribution rate to CalPERS (equivalent to 5% of compensation). VIII. Effective July 1, 2014, all Supervisory and Confidential Employees shall pay 100% of the statutory CalPERS employee contribution rate to CalPERS. Individuals hired by the District on or after January 26, 2012, the date Resolution 12-01 was adopted, shall be enrolled in the 2% @ 60 retirement formula and shall pay 100% of the statutory CalPERS employee contribution to CalPERS. All payments will be credited to the employee's individual account with CalPERS. IX. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to CalPERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 X. Each employee will be annually reviewed on a one-year interval following completion of their probationary period. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an employee who receives an exceeds job expectations evaluation shall be allowed to move up to two (2) step. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. XI. All new hires shall be subject to a twelve (12) month probationary period. Such new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to successful completion of six (6) months of service. An existing employee who has been promoted to a new position will be required to serve a six (6) month promotional probationary period in the new position. XI 1. Supervisory and Confidential Employees shall accrue vacation leave time with pay as follows: Duration of Continuous Hours Accrued per Pay Period Regular Employment During 1 st through 60th month 3.077 hrs = 2.0 weeks/yr During 61 st through 120th month 4.615 hrs = 3.0 weeks/yr During 121 st through 180th month 5.384 hrs = 3.5 weeks/yr During 181 st through 240th month 6.153 hrs = 4.0 weeks/yr During 241St month and thereafter 6.922 hrs = 4.5 weeks/yr XIII. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Supervisory and Confidential Employee under age 70 on the first day of the month following their date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Supervisory and Confidential Employees may increase the coverage to up to five time's annual salary not to exceed $300,000 by authorizing the additional premium to be deducted from his/her salary. XIV. The District shall pay 100% of the premium for hospital and medical insurance for all Supervisory and Confidential Employees who work in excess of 30 hours per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered employees with one dependent or up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with more than one dependent in accordance with the provisions of any contract between the District and any company Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 or companies of the District's choosing. The Supervisory and Confidential Employee shall pay the cost of the difference in premium, to be deducted from his/her salary to cover the employee's share of the dependent coverage. Supervisory and Confidential Employees shall have the option of selecting a District-designated Health Maintenance Organization ("HMO"). The District contribution for HMO coverage will be in accordance with this paragraph. XV. The District shall pay 100% of the premium for dental insurance for all Supervisory and Confidential Employees who work 30 hours or more per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with one dependent or up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Supervisory and Confidential Employees shall pay the cost of the difference in premium, to be deducted from his/her salary. Supervisory and Confidential Employees shall have the option of selecting "Delta Care" with the contribution for "Delta Care" to be in accordance with this paragraph. XVI. District shall pay 100% of the premium for vision insurance for Supervisory and Confidential Employees who work more than 30 hours per week, on the first day of the month following their date of hire, and up to 2/3 of the additional premium toward dependent coverage for covered Supervisory and Confidential Employees with one dependent or up to 2/3 of the additional premium toward dependent coverage for covered Supervisory and Confidential Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Supervisory and Confidential Employee shall pay the cost of the difference in premium, to be deducted from his/her salary. XVII. For a period of time which is equivalent to one (1) year or pro-ration thereof on a monthly basis for each three (3) years of service to the District or pro-ration thereof on a quarterly basis, and subject to carrier approval, the District shall pay the amounts provided in paragraphs XIV, XV and XVI of this agreement for any Supervisory and Confidential Employee who was employed by the District on or before December 8, 2011, the date Resolution No. 11-21 was adopted and who retires from the District. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete years of service with the District, must retire from the District after the date of this Agreement while in good standing and upon ninety (90) days written notice and must remain in retired status. Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 When the Supervisory and Confidential retiree or his/her spouse reaches ages 65 and is eligible for Medicare, the coverage will convert to Medicare Supplement for the remainder of the benefit period. For purposes of this Agreement, retired status means that the Supervisory and Confidential Employee shall not work for compensation for more than nine hundred sixty (960) hours in any fiscal year (July 1 through June 30). The District may require a Supervisory and Confidential Employee to certify under penalty of perjury that the Supervisory and Confidential Employee has remained on retired status and/or submit to such additional verification, as the District deems necessary to demonstrate retired status. The retired Supervisory and Confidential Employee must make any contribution required of a regular Supervisory and Confidential Employee pursuant to paragraph XIV, XV and XVI prior to the first day of the month in which coverage is to be extended. Failure of a Supervisory and Confidential Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. Supervisory and Confidential Employees hired after the adoption of Resolution 11-21 (12-8-2011) shall be ineligible to receive this benefit. A Supervisory and Confidential Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of their final salary for 3/8 of their accumulated days of sick leave, if any, at the time of separation from active employment. The remaining 5/8 of his/her accumulated days of sick leave will be converted into CalPERS service credit. If the Supervisory and Confidential Employee should die, his/her estate shall be entitled to such payment. XVIII. Supervisory and Confidential Employees who are laid off from District employment after being employed by the District for five (5) or more complete years of continuous regular employment, shall be compensated for accumulated, unused sick leave above 400 hours as follows: YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XIX. To the extent possible, the District shall extend its current plan under Section 125 of the Internal Revenue Code to cover Supervisory and Confidential Employees. Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 XX. The District shall provide a long-term disability plan for Supervisory and Confidential Employees which has a 90-day elimination period and provides at least sixty percent (60%) of salary for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XXI. Effective July 1, 2012, the District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Supervisory and Confidential Employee's salary or the employee's actual amount of deferred compensation per payroll period, whichever amount is lesser. XXII. Supervisory and Confidential Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this employee compensation letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. XXIII. In situations where a Supervisory and Confidential Employee has been injured in a non-duty accident and his/her disability leave exceeds one calendar month or the total of his/her accumulated leaves, including sick leave, paid time off and vacation, that portion of the leave exceeding 30 days or the total of accumulated leaves, whichever is more, shall constitute a break in service and his/her merit review dates and anniversary date will be adjusted accordingly. XXIV. The District will pay up to a total of $2,000 annually to establish and administer a tax-advantaged flexible benefit plan, and a total of $5,000 annually to establish a tax advantaged dependent care plan. Plans will conform to the requirements of Section 125 of the Internal Revenue Code, and permit Supervisory and Confidential Employees to convert their share of insurance premiums, un-reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. Savings to the District through reductions to the payroll and worker's compensation tax base will accrue to the District and offset the costs of establishing and administering this program. XXV. The District shall reimburse Supervisory and Confidential Employees for sums paid to the appropriate agencies for obtaining or renewing treatment and/or distribution certificates and other professional certifications, registrations and job related training. XXVI. Supervisory and Confidential Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00, provided that the boots are from a list pre-approved by the General Manager or his/her designee. The difference between Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 $200.00 and the amount actually used may be carried over for one year and combined with a subsequent allocation for boot reimbursement. XXVII. The District shall provide educational reimbursement to Supervisory and Confidential Employees for costs of tuition, fees, books and parking relating to educational courses taken and completed at accredited institutions at a rate not to exceed standard resident fees as charged by the California State University. Course work must be job related as determined and approved in advance by the General Manager. Proof of payment and successful completion of the course must accompany the reimbursement request on a form provided by the District. Supervisory and Confidential Employee shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period, shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee's closing check. Any remaining, non-reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. XXVIII. Supervisory and Confidential Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that the Supervisory and Confidential Employee takes a minimum of one-half the vacation time to which he/she is entitled within the same annual period of the sold vacation time. A member who has been employed by the District for more than one year may also buy from the District up to an additional forty (40) hours of vacation time within any calendar year for use during the same calendar year, provided that full and complete payment has been made for the purchased vacation time by salary modification prior to use of the vacation time. It is expressly understood that this benefit is provided at the sole discretion of the District and shall automatically terminate upon the expiration of this Supervisory and Confidential letter unless an extension is expressly agreed to by the District. XXIX. The Holiday schedule attached hereto as Exhibit F shall be in effect for full-time Supervisory and Confidential Employees covered by this Supervisory and Confidential letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Supervisory and Confidential Employee normally would have worked other than for the holiday. For those Supervisory ad Confidential Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday, and a holiday falling Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 on a Sunday shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within 12 months following the accrual of each floating holiday. In order to be eligible for Holiday pay, a Supervisory and Confidential Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. XXX. The District shall reimburse Supervisory and Confidential Employees for sums paid to the appropriate state agencies for obtaining or renewing of production or distribution certificates. In addition, a one-time per fiscal year payment of $150.00 per certificate shall be provided to an affected employee who has qualified for and been issued a State of California Department of Health Services Treatment and/or Distribution Certificate, which has been determined in the sole discretion of the General Manager to be relevant to the employee's duties and which is other than a certificate that is a job requirement. The $150.00 payment shall apply for any Distribution and/or Treatment Certificates issued by the State of California Department of Health Services that are required above and beyond the required certification for a specific classification within the District's Operations Department and shall be issued during each year in which the applicable certificate(s) remains valid and remains other than a certificate which is a job requirement. The table below identifies the positions that require specific State of California Certifications. CLASSIFICATION REQ'D TREATMENT REQ'D DISTRIBUTION CHIEF PLANT T3 D5 OPERATOR SCADA T2 D3 ADMINISTRATOR SR. CONSTRUCTION D2 INSPECTOR WATER D5 MAINTENANCE SUPERINTENDENT WATER QUALITY D3 ENGINEER Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 The term of this Compensation Letter for Supervisory and Confidential Employees is for the period of July 1, 2012 to June 30, 2015. Date General Manager Supervisory and Confidential Compensation Letter FYs 2012/2015 Revised 7-26-2012 ITEM NO. 3.2 AGENDA REPORT Meeting Date: August 7, 2012 Total Budget: $45,000 To: Personnel-Risk Management Committee Funding Source: All Water Funds From: Steve Conklin, Engineering Account No: 1-2010-0600-00 Manager Presented By: Gina Knight, HR/Risk Manager Prepared By: Amelia Cloonan, Personnel Technician Subject: Request for Proposals for an Organizational Efficiency Study SUMMARY: During Fiscal Year 2011/12 Board members requested staff to look at the District's organizational makeup to determine if opportunities for efficiencies exist. DISCUSSION: During Fiscal Year 2011-2012, there was a request by one or more Board members for staff to look at the District's organization to determine if opportunities for efficiencies exist within the organization's structure. At its meeting of May 8, 2012, the Personnel-Risk Management Committee agreed to recommend to the Board of Directors that they consider authorization for staff to prepare a Request for Proposals for Professional Services for an Organizational Efficiency Study. Funds were allocated in the Administration Department's Budget (FY 2012/2013). STRATEGIC PLAN: OE 2-A: Identify Core Inefficiencies PRIOR RELEVANT BOARD ACTION(S): At its meeting held May 8, 2012, the Personnel-Risk Management Committee agreed to bring to the full Board of Directors for discussion and consideration a request for proposals for an organizational efficiency study. On May 24, 2012, the Board of Directors authorized staff to prepare a Request for Proposals for Professional Services for the preparation of an Organizational Efficiency Study. ATTACHMENTS: Name: Description: Type: DRAFT RFP FOR ORG EFFICIENCY STUDY.docx Backup Material Backup Material Yorba Linda Water District REQUEST FOR PROPOSAL ORGANIZATIONAL EFFICIENCY STUDY Issued OctoberXX, 2012 Response Due by: NovemberXX, 2012 TABLE OF CONTENTS 1. PROPOSAL INFORMATION 2. TIMETABLE 3. BACKGROUND 4. SCOPE OF SERVICES AND REQUIREMENTS 5. TERMS OF PROPOSAL a. Pre-Contractual Expenses b. Contract Award C. Insurance Requirements d. Agreement Not to Discriminate e. No Assignment f. Assigned Personnel g. Compensation 6. EVALUATION CRITERIA EXHIBIT 1 Requested Information for Organizational Efficiency Study EXHIBIT 2 Sample Professional Services Agreement YORBA LINDA WATER DISTRICT REQUEST FOR PROPOSAL FOR AN ORGANIZATIONAL EFFICIENCY STUDY October XX 2012 1. PROPOSAL INFORMATION Your firm has been invited by the Yorba Linda Water District (YLWD or District) to submit a written proposal for an Organizational Efficiency Study. Proposals must be received by 4:00 p.m. November XX, 2012. Proposals must respond in the manner specified in this Request for Proposal, and proposals received by facsimile or email will not be considered. YLWD reserves the right to reject proposals or to waive irregularities in any proposal or in the proposal procedures. Submit one (1) electronic copy of your proposal and two (2) hardcopies of your proposal to: Attn: General Manager Yorba Linda Water District 1717 E. Miraloma Avenue Placentia CA 92870 Any questions regarding this proposal should be directed to GM by e-mail at (a-)-ylwd.com. All questions received and responses will be made available to all proposers. With the exception of GM, YLWD staff should not be contacted regarding this proposal. You may be invited to make an oral presentation. The contract, if any is awarded, will be awarded to the firm(s) whose overall proposal(s) demonstrates the ability to best meet the needs of YLWD. This will not be judged solely on the price of the contract. By submitting a proposal, the proposer acknowledges and agrees that YLWD reserves the right to investigate the qualifications of all firms under consideration and to confirm any part of the information furnished by any proposer, or to require other evidence of managerial, financial or technical capabilities considered necessary to fulfill the contract successfully. Exhibit 1 details the requested information that must be provided in order to assist YLWD in evaluating the proposal(s). The proposal must include a Scope of Work, a Cost Proposal for Work and a Fee Schedule as exhibits. 2. TIMETABLE Tentative dates for activity relating to the proposal are given below: Requests for Proposal Mailed October XX, 2012 Deadline for Receipt of Proposals November XX, 2012 Tentative Date for Interviews Week of December XX, 2012 Award of Contract January XX, 2013 The proposed timeline is recognized to be accelerated. 3. BACKGROUND The Yorba Linda Water District has one (1) primary campus consisting of the District's main headquarters, Operations Facility, warehouse, mechanic shop and water quality lab on campus. The District also has fourteen (14) reservoirs, nine (9) wells and twelve (12) booster pump stations (BPS) located throughout the city of Yorba Linda and parts of Placentia. The District's Operations Facility is located at 913 Richfield Rd. Placentia, CA 92870. The District's Headquarters Facility is located at 1717 E. Miraloma Avenue, Placentia, CA 92870. YLWD currently has 76 full time employees that represent office staff performing engineering services, clerical, administrative, support, management functions, as well as field operations. YLWD History - Include some history about the District................. Yorba Linda Water District's Board of Directors consists of five members elected at large for four-year terms with no limit on the number of terms. The President of the Board and other officers are selected by a vote of the members of the Board. A General Manager, who serves at the pleasure of the Board, is responsible for implementing Board policy, managing all District operations and maintaining positive community/industry relations. Strategic Plan — Include information on the latest plan.................... 4. SCOPE OF SERVICES AND REQUIREMENTS The selected Consultant shall perform a comprehensive organizational assessment of the District's existing water and sewer operations, administrative and support functions, organizational structure, information/communication technology systems including software and current staffing levels. The assessment shall be fact-based and shall include all aspects of the District's functions and services. As part of the proposal, the Consultant shall indicate the methodology or approach to be used in the organizational assessment. Key areas of the organizational assessment would include, but not necessarily be limited to, description of current state of the District, identification of improvement opportunities, recommended actions to improve organizational performance, recommended effective communications — internally, both vertically and horizontally, as well as between the organization and the public, between departments, staff and the Board. Records retention, whether internal or Internet based, may be included in the assessment. The assessment should reflect the Board's desired management style for the District and propose suggestions for achieving compliance with that style, as appropriate. The Board desires to achieve a high-performing organization that empowers staff members to act quickly and professionally with minimum supervision in the conduct of their responsibilities. Incorporate and focus on the District's core values: Integrity, Accountability, Responsibility, Transparency and Teamwork. The style should also promote a strong commitment to customer service and customer relations as well as open communications throughout the organization. The Board desires the District to be a transparent, high performing and customer- oriented organization that communicates openly, consistently and effectively with customers and that provides reliable, high quality water and sewer services in an environmentally responsible manner, while maintaining an economical cost and unparalleled customer service to our community. Externally, the Board would like the District to be seen by its customers and other public agencies as a leading, innovative and efficient source for high quality reliable services. The Consultant shall prepare a Draft Final Report for District review and comment which shall include complete organizational analysis and recommendations for changes, including organizational structure and staffing, needed training and any other follow-up actions. Actions recommended for implementation should be designed to improve organizational effectiveness, service quality, cost effectiveness, staff skill levels, retention, job satisfaction and public transparency. The Consultant shall produce a final repot indicating what steps the District should take to achieve the desired management climate and to ensure that the organizational structure is cost-effective, efficient and empowering. Consultant shall review the draft report with the assigned Board members for completeness and accuracy, submit a Final Report, and make a final presentation to the District's Board of Directors. 5. Methodology The selected Consultant shall identify areas for improvement by comparison to industry and/or organizational best practices and benchmarks and in accordance with the Board's desired management style, expectations and priorities. 6. TERMS OF PROPOSAL A. Pre-Contractual Expenses YLWD will not, in any event, be liable for any pre-contractual expenses incurred by the proposer. The proposer will not include any such expenses as part of the price as proposed in response to this RFP. B. Contract Award YLWD reserves the right to withdraw this RFP at any time without prior notice. Further, YLWD makes no representations that any agreement will be awarded to any proposer responding to this RFP. YLWD expressly reserves the right to postpone proposal opening for its own convenience and to reject any and all proposals responding to this RFP without indicating reasons for such rejections. YLWD reserves the right to make its award on subjective factors and will not be awarding this contract solely on the basis of lowest bid received. If a contract is awarded, the successful proposer must sign the District's form contract, which is attached as Exhibit B to this RFP. D. Insurance Requirements The selected firm shall maintain insurance coverage that is acceptable to YLWD. Endorsements of insurance will be required, naming YLWD, its affiliated organizations and its and their respective officers, directors, trustees, employees, agents, consultants, attorneys, successors and assigns as Additional Insured for Commercial General Liability and Automobile Liability. Before providing services, the Consultant shall provide required Certificates of Insurance and endorsements on approved ACORD forms for the following: 1. Commercial General Liability insurance with minimum limits of $1,000,000 per occurrence; $2,000,000 aggregate. 2. Automobile Liability insurance with minimum limits of$1,000,000 per accident. 3. Workers' Compensation with statutory limits, as required by the Labor Code of the State of California, and employer's Liability with minimum limits of$1,000,000 per occurrence. 4. Professional Liability/Errors and Omissions insurance with minimum limits of$1,000,000 per occurrence per claims made. Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of Agreement or the work. E. Agreement Not to Discriminate In the performance of the terms of any contract resulting from this proposal, the provider agrees not to engage in nor permit subcontractors, where applicable, from engaging in discrimination in employment of person because of race, color, national origin or ancestry, age, gender, disability, or religion of such persons unless permitted by law. F. No Assignment No assignment by the contractor of contract will be recognized by YLWD unless such assignments have had prior written approval and consent from the YLWD Project Manager. YLWD will be specifically contracting for the services of the individuals in the firm making the proposal, and the qualifications of those individuals will be material inducement for the award of the contract. G. Assigned Personnel The experience and references of each assigned consultant will be a significant determining factor in selection of the consulting firm. Subcontracting of services to any consultant not designated and approved by YLWD will not be permitted. 7. EVALUATION CRITERIA Some of the criteria used to evaluate the proposal are listed below: A. Experience of the firm. B. Nature and relevance of work currently being performed. C. Demonstrated knowledge of public agencies, particularly water districts. D. Understanding the needs and requirements of YLWD. E. Quality of references. F. Fees charged and other contract requirements. G. The content and form of written proposal. H. Sample written reports. I. Credentials and accreditation of assigned consultant(s). EXHIBIT 1 Yorba Linda Water District REQUESTED INFORMATION FOR ORGANIZATIONAL EFFICIENCY STUDY REQUESTED INFORMATION This section contains questions that will allow YLWD to evaluate your firm and the services you provide. To be considered, your proposal must respond to the questions in the order they are requested, and be numbered the same way. (1) Company Information The following questions relate to general information about your firm: A. Provide the address and telephone number of your home office and any other office locations. Identify the office location that will provide services to YLWD. B. Federal Tax Identification Number. C. List the principal owners, partners or officers and include their business address and telephone numbers. D. How many years have you been in business? E. What percentage of your clients are public entities and what percentage are water or sanitation districts? F. Is there pending litigation against your firm? If so, please provide details. G. Does your firm anticipate selling or merging with any other firms in the next three years? If yes, please provide details. (2) Organization and Personnel A. Provide an organization chart for your firm. Also provide an organization chart for the location where this account will be handled and include the number of individuals in each position. B. Provide resumes of personnel who would be assigned to our account. Resumes should include the length of time employed by your firm, any certifications they hold and a listing of their clients. Identify whether consultant is an employee or subcontractor. C. Include a statement that only consultants that are approved in writing by YLWD will be assigned to the account and that they will not be removed or replaced without prior written agreement from YLWD. D. Affirm that no employees working on the project have ever been convicted of a felony. (3) Scope of Work A. Include a restatement of the scope of work to be performed, methodology to complete the scope, including your understanding of the tasks required by YLWD. B. Your availability to promptly provide services as stated will be a key factor in the selection process. Describe how your firm will respond to such a schedule for providing services and responding to questions. (4) Insurance Please provide your insurance carrier name and limits for each line of insurance. A. Commercial General Liability B. Automobile Liability C. Workers' Compensation/Employer's Liability D. Professional Liability/Errors and Omissions (5) Other Documents and Information The following documents/information should be included in your proposal package: A. Client references including the company name, contact person, title, address, telephone number and name(s) of your staff assigned to the project. Client references must be provided for all staff that would be assigned to the account. B. Sample written report(s) by each safety consultant proposed to be assigned. (6) Fees A. Consulting Services: Provide the proposed fees for your services. If on an hourly basis, please provide the following: 1. Hourly rate. 2. Billing increments (e.g. 10 minute increments) 3. Travel time, if any charge. 4. Confirm that fee includes all overhead and clerical expenses. 5. Identify any fees not reflected above. (7) Authorized Signature The proposal must be signed and dated by the person authorized to bind your firm and should state the number of days your offer will remain firm after the date of signature. EXHIBIT 2 Yorba Linda Water District PROFESSIONAL SERVICES AGREEMENT BETWEEN THE YORBA LINDA WATER DISTRICT AND [INSERT PARTY] PROJECT/SITE: [INSERT DESCRIPTION] JOB #: [INSERT JOB#] DATE: [INSERT DATE] THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into on , 20127 by and between the YORBA LINDA WATER DISTRICT, a local public agency, created and operating under authority of Division 12 of the California Water Code ("District"), and [INSERT CONSULTANT] ("Consultant") (collectively referred to herein as the "Parties"). RECITALS WHEREAS, District is engaging in the Project described in the Scope of Work attached as Exhibit "A"; and WHEREAS, District requires a professional consultant with the requisite knowledge, skill, ability and expertise to provide the necessary services for District during all phases of the Project to which the specialized services of Consultant are appropriate; and WHEREAS, Consultant represents to District that it is fully qualified and available to perform the services for and as requested by District; and NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties agree as follows: AGREEMENT 1.0. SCOPE OF WORK. The services to be provided by Consultant ("Work") are called out in the Scope of Work attached as Exhibit "A" and incorporated herein by reference. All Work shall be performed in accordance with the standards customarily provided by an experienced and competent professional rendering the same or similar services and in such a prompt and continuous fashion as not to impede or delay the overall completion of the Project. 1.1. Project Manager. Consultant acknowledges that continuous and effective communication between District, Consultant, and other consultants (as appropriate) is necessary to the successful completion of the Project. Consultant may also be required to furnish copies of its work product and communications to others as requested by District. Consultant's primary contact with District shall be through District's Project Manager specified on Exhibit "A." District's primary contact with Consultant shall be through the Consultant's Representative, designated on Consultant's Cost Proposal attached as Exhibit "B," and incorporated herein by reference. When requested by District, Consultant's Representative shall attend Project meetings and will undertake, as a part of its professional responsibility under this Agreement, to coordinate its activities with all appropriate individuals and consultants. 1.2. Use of Designs and Drawings. All work product of Consultant, whether created solely by Consultant or in cooperation with others, is prepared specifically and expressly for District and all right, title, and interest therein shall be owned by District. District shall make available to Consultant such information, documents, graphs, studies, etc., which District possesses or has access to, which are relevant to Consultant's Work pursuant to this Agreement. 1.3. Review. Consultant shall furnish District with reasonable opportunities from time to time to ascertain whether the Work of Consultant are being performed in accordance with this Agreement. All Work done and materials furnished shall be subject to final review and approval by District. District's interim review and approval of Consultant's work product shall not relieve Consultant of its obligations to fully perform this Agreement. 1.4. Commencement of Work. The Project start date is called out on Exhibit "A." 1.5. Time Is Of The Essence. Consultant shall perform all Work with due diligence as time is of the essence in the performance of this Agreement. Time limits applicable for the performance of Consultant's Work are established in Exhibit "A." 2.0 COMPENSATION. As compensation for performance of the Work specified under the Scope of Work (Exhibit "A"), District shall pay Consultant an amount not to exceed that contained in Consultant's Cost Proposal (Exhibit "B"). Payment will be made at the rates set forth in Consultant's Fee Schedule, which is attached as Exhibit "C" and incorporated herein by reference. Costs or expenses not designated or identified in the Fee Schedule shall not be reimbursable unless otherwise provided in this Agreement. 2.1. Invoicing. Consultant shall submit an invoice within ten (10) days after the end of each month during the term of this Agreement describing the Work performed for which payment is requested. District shall review and approve all invoices prior to payment. District shall pay approved invoices within thirty (30) days of receipt. Consultant agrees to submit additional documentation to support the invoice if requested. If District does not approve an invoice, District shall send a notice to Consultant setting forth the reason(s) the invoice was not approved. Consultant may re-invoice District to cure the defects identified by District. The revised invoice will be treated as a new submittal. District's determinations regarding verification of Consultant's performance, accrued reimbursable expenses, if any, and percentage of completion shall be binding and conclusive. Consultant's time records, invoices, receipts and other documentation supporting the invoices shall be available for review by District upon reasonable notice and shall be retained by Consultant for three (3) years after completion of the Project. 2.2. Extra Services. Before performing any services outside the scope of this Agreement ("Extra Services"), Consultant shall submit a written request for approval of such Extra Services and receive written approval from District. District shall have no responsibility to compensate Consultant for any Extra Services provided by Consultant without such prior written approval. 3.0 TERMINATION. District may terminate this Agreement at any time upon ten (10) days written notice to Consultant. Should District exercise the right to terminate this Agreement, District shall pay Consultant for any Work satisfactorily completed prior to the date of termination, based upon Consultant's Fee Schedule. Consultant may terminate this Agreement upon ten (10) days written notice to District in the event of substantial failure by District to perform in accordance with the terms hereof through no fault of Consultant; or in the event District fails to pay Consultant in accordance with the terms in Section 2.0; or if Consultant's Work hereunder is suspended for a period of time greater than ninety (90) days through no fault of Consultant. 3.1. Withholding Payment. In the event District has reasonable grounds to believe Consultant will be materially unable to perform the Work under this Agreement, or if District becomes aware of a potential claim against Consultant or District arising out of Consultant's negligence, intentional act or breach of any provision of this Agreement, including a potential claim against Consultant by District, then District may, to the fullest extent allowed by law, withhold payment of any amount payable to Consultant that District determines is related to such inability to complete the Work, negligence, intentional act, or breach. 4.0. SAFETY. Consultant shall conduct and maintain the Work so as to avoid injury or damage to any person or property. Consultant shall at all times exercise all necessary safety precautions appropriate to the nature of the Work and the conditions under which the Work is to be performed, and be in compliance with all applicable federal, state and local statutory and regulatory requirements including State of California, Department of Industrial Relations (Cal/OSHA) regulations. Consultant is responsible for the safety of all Consultant personnel at all times during performance of its Work, including while on District property. 5.0 INDEMNIFICATION. 5.1. When the law establishes a professional standard of care for the Consultant's services, to the fullest extent permitted by law, Consultant will defend, indemnify and hold harmless District, its directors, officers, employees, and authorized volunteers from and against all claims and demands of all persons that arise out of, pertain to, or relate to the Consultant's negligence, recklessness, or willful misconduct in the performance (or actual or alleged non-performance) of the Work under this Agreement. Consultant shall defend itself against any and all liabilities, claims, losses, damages, and costs arising out of or alleged to arise out of Consultant's performance or non-performance of the Work hereunder, and shall not tender such claims to District nor to its directors, officers, employees, or authorized volunteers, for defense or indemnity. 5.2. Other than in the performance of professional services, to the fullest extent permitted by law, Consultant will defend, indemnify and hold harmless District, its directors, officers, employees and authorized volunteers from and against all claims and demands of all persons arising out the performance (or actual or alleged non-performance) of the Work (including the furnishing of materials), including but not limited to claims by the Consultant, Consultant's employees and any subconsultants for damages to persons or property, except for damages resulting from the willful misconduct, sole negligence or active negligence of District, its directors, officers, employees, or authorized volunteers. 5.3. Consultant shall defend, at Consultant'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 District or any of its directors, officers, employees, or authorized volunteers, with legal counsel reasonably acceptable to District. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against District or any of its directors, officers, employees, or authorized volunteers, in any and all such aforesaid suits, actions, or other legal proceedings for which Consultant is obligated to defend, indemnify and hold harmless District, its directors, officers, employees and authorized volunteers under this Agreement. 5.4. Consultant shall reimburse District or its directors, officers, employees, and 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. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by District or its directors, officers, employees, or authorized volunteers. 6.0 INSURANCE REQUIREMENTS. Prior to execution of this Agreement, and at any time thereafter on request, Consultant shall provide executed certificates of insurance and policy endorsements acceptable to District evidencing the required coverage and limits for each insurance policy. Each insurance policy shall be primary insurance as respects District, its affiliated organizations and its and their respective officers, directors, trustees, employees, agents, consultants, attorneys, successors and assigns (collectively, the "Covered Parties") for all liability arising out of the activities performed by or on behalf of Consultant. Any insurance, pool coverage, or self-insurance maintained by Covered Parties shall be excess of Consultant's insurance and shall not contribute to it. Except for the Errors and Omissions policy (Section 6.4), all insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the Covered Parties or shall specifically allow Consultant or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to loss. Consultant waives its right of recovery against the Covered Parties for damages covered by insurance required by this Agreement. Consultant shall require similar written express waivers and insurance clauses from each of its subcontractors. The insurer issuing the Workers' Compensation insurance shall amend its policy to waive all rights of subrogation against the Covered Parties. Each insurance policy shall provide, or be endorsed to provide, that coverage shall not be cancelled except after thirty (30) days prior written notice by U.S. Mail (ten (10) days for non-payment of premium) has been given to District. Unless otherwise approved by District, each insurance provider shall be authorized to do business in California and have an A.M. Best rating (or equivalent) of not less than "A-:VII." Consultant shall provide and maintain at all times during the performance of this Agreement the following insurance: (1) Commercial General Liability ("CGL") insurance; (2) Automobile Liability insurance; (3) Workers' Compensation and Employer's Liability insurance; and (4) Errors and Omissions ("E&O") liability insurance. 6.1. Commercial General Liability. Each CGL policy shall identify Covered Parties as additional insured, or be endorsed to identify Covered Parties as additional insured using a form acceptable to the District. Coverage for additional insured shall not be limited to vicarious liability. Defense costs must be paid in addition to limits. Each CGL policy shall have liability coverage limits of at least $1,000,000 per occurrence for bodily injury, personal injury and property damage, and either at least (a) $2,000,000 aggregate total bodily injury, personal injury and property damage applied separately to the Project; or at least (b) $570007000 general aggregate limit for all operations. CGL insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 6.2. Automobile Liability. Each Automobile Liability policy shall require coverage for "any auto" and shall have limits of at least $1,000,000 for bodily injury and property damage, each accident, and shall use ISO policy form "CA 00 01 " including owned, non-owned and hired autos, or the exact equivalent. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the CGL policy described above. Automobile Liability insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 6.3. Workers' Compensation/Employer's Liability. Consultant shall cover or insure the existence of coverage under the applicable laws relating to Workers' Compensation insurance, all of their employees employed directly by them or through subconsultants at all times in carrying out the Work contemplated under this Agreement, in accordance with the "Workers' Compensation and Insurance Act" of the California Labor Code and any amendatory Acts. Consultant shall provide Employer's Liability insurance with limits of at least $1,000,000 each accident, $1,000,000 disease policy limit, and $1,000,000 disease each employee. By Consultant's signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code, which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that code, and that Consultant will comply with such provisions before commencing Work under this Agreement. Upon the request of District, subconsultants must provide certificates of insurance evidencing such coverage. 6.4. Errors and Omissions. Each E&O policy shall have limits of at least $1,000,000 per claim and $1,000,000 aggregate. E&O insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 7.0. INDEPENDENT CONTRACTOR. The Parties agree that the relationship between District and Consultant is that of an independent contractor and Consultant shall not, in any way, be considered to be an employee or agent of District. Consultant shall not represent or otherwise hold out itself or any of its directors, officers, partners, employees, or agents to be an agent or employee of District. District will not be legally or financially responsible for any damage or loss that may be sustained by Consultant because of any act, error, or omission of Consultant or any other consultant, nor shall Consultant make any claim against District arising out of any such act, error, or omission. 7.1. Taxes and Benefits. Consultant shall be solely responsible for the payment of all federal, state and local income tax, social security tax, Workers' Compensation insurance, state disability insurance, and any other taxes or insurance Consultant, as an independent contractor, is responsible for paying under federal, state or local law. Consultant is not eligible to receive Workers' Compensation, medical, indemnity or retirement benefits through District, including but not limited to enrollment in CalPERS. Consultant is not eligible to receive overtime, vacation or sick pay. 7.2. Permits and Licenses. Consultant shall procure and maintain all permits, and licenses and other government-required certification necessary for the performance of its Work, all at the sole cost of Consultant. None of the items referenced in this section shall be reimbursable to Consultant under the Agreement. 7.3. Methods. Consultant shall have the sole and absolute discretion in determining the methods, details and means of performing the Work required by District. Consultant shall furnish, at its own expense, all labor, materials, equipment, tools and transportation necessary for the successful completion of the Work to be performed under this Agreement. District shall not have any right to direct the methods, details and means of the Work; however, Consultant must receive prior written approval from District before assigning or changing any assignment of Consultant's project manager or key personnel and before using any subconsultants or subconsultant agreements for services or materials under this Agreement and any work authorizations. 8.0. NOTICES. Any notice may be served upon either Party by delivering it in person, or by depositing it in a U.S. Mail Deposit Box with the postage thereon fully prepaid, and addressed to the Party at the address set forth below: District: General Manager Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 Consultant: As designated in Exhibit "B." Any notice given hereunder shall be deemed effective in the case of personal delivery, upon receipt thereof,or, in the case of mailing,at the moment of deposit in the course of transmission with the United States Postal Service. 9.0 ASSIGNMENT. Neither Consultant nor District may assign or transfer this Agreement, or any part thereof, without the prior written consent of the other Party, which shall not be unreasonably withheld. 10.0 ATTORNEY'S FEES. In the event of any action arising out of, or in connection with, this Agreement, or the Work to be performed hereunder, the prevailing Party shall be entitled to have and recover, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation, its attorney's fees. 11.0. BINDING ARBITRATION. Within thirty (30) days after service of a civil action on either Party arising out of, or in connection with, this Agreement, either Party may elect to submit the action to binding arbitration before the Judicial Arbitration and Mediation Service ("JAMS"), located in Orange County. The Parties agree that upon an election to arbitrate, any civil action filed will be stayed until arbitration proceedings have concluded. Upon submission of the matter to JAMS, the submitting Party shall obtain from JAMS a list of three (3) randomly selected arbitrators and serve said list upon the other Party. In the event that there are more than two parties to the action, the number of arbitrators randomly selected and included in the list shall be increased by two for each additional party involved. Upon service of the randomly selected list of arbitrators, each party shall have twenty (20) days to eliminate two arbitrators from the list and return it to JAMS, with the selected arbitrator being the remaining name on the list. Should more than one name remain on the list, JAMS will randomly select the arbitrator from the names remaining on the list. Arbitration shall be scheduled for hearing on the merits no later than six (6) months after the date the arbitrator is selected. All parties shall be permitted to conduct discovery as provided by the current rules of the California Code of Civil Procedure. All costs of JAMS or of the arbitrator for Work shall be divided equally among the Parties, unless otherwise ordered by the arbitrator. In an arbitration to resolve a dispute under this provision, the arbitrator's award shall be supported by law and substantial evidence. 12.0 FORCE MAJEURE. Upon written notice by the owing Party, the respective duties and obligations of the Parties hereunder (except District's obligation to pay Consultant such sums as may become due from time to time for Work rendered by it) shall be suspended while and so long as performance thereof is prevented or impeded by strikes, disturbances, riots, fire, governmental action, war acts, acts of God, or any other cause similar or dissimilar to the foregoing which are beyond the reasonable control of the Party from whom the affected performance was due. [INTENTIONALLY LEFT BLANK] 13.0 ENTIRE AGREEMENT. This Agreement, and the attached Exhibits, represent the entire and integrated agreement between District and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both District and Consultant. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be entered into as of the day and year written above. District: Consultant: Yorba Linda Water District By: By: General Manager APPROVED AS TO FORM: Kidman Law LLP By: Arthur G. Kidman, General Counsel Attachments: Exhibit A: Scope of Work Exhibit B: Cost Proposal for Work Exhibit C: Fee Schedule ITEM NO. 3.3 AGENDA REPORT Meeting Date: August 7, 2012 To: Personnel-Risk Management Committee From: Steve Conklin, Engineering Manager Presented By: Gina Knight, HR/Risk Manager Dept: Human Resources/Risk Management Prepared By: Amelia Cloonan, Personnel Technician Subject: Human Resources/Risk Management/Safety Activity and Status of Recruitments and Budgeted Positions SUMMARY: The attached spreadsheets are updated on a monthly basis and presented to the Committee for discussion. DISCUSSION: The attached Department Activity spreadsheet is updated monthly to show the status of Human Resources, Risk Management and Safety/Wellness activities as well as revisions to the District's policies and procedures, job related and employee development training offered to District employees, claims activity and District sponsored employee events. Items shown in red have been revised or updated since the last report. The Budgeted Positions spreadsheet is updated monthly to show the status of the District's current recruitment activity. The spreadsheet identifies the current fiscal year's budgeted positions as well as any vacancies awaiting action. Items identified in red indicate the most recent activity such as pending employment offers or applications being processed in addition to any revisions or updates since the last report. Twelve applications were received for the Records Management Intern position that opened on May 17, 2012, closed on May 31 , 2012 and was then extended from June 11 through June 14, 2012. Two applicants were interviewed on July 10, 2012. The decision was made to let both candidates know that hiring for the Records Management Intern position was suspended pending an organizational study. A recruitment was opened on July 20 for an Accounting Assistant II. The position has been advertised on the District's website and through Neogov. Additionally, the position was posted on Brown and Caldwell's BC Water Jobs. The recruitment will close on August 6, and interviews will be held on August 20. WE 1-E: Continue to Support Additional Training (Testing) for Staff WE 2-13: Define the Competencies and Motivational Profile Required for Key Roles (and other roles) ATTACHMENTS: Nan Description: Type: HR DEPARTMENT ACTIVITY fiscal 2011- HR DEPARTMENT ACTIVITY Backup Material 2012 Use This One for PRM Committee.doc Budgeted Positions 07-30-2012.xls Budgeted Positions Backup Material HR DEPARTMENT ACTIVITY 2012 POLICIES AND PROCEDURES ACTIVITY STATUS Development and Maintenance of Management On hold Safety Procedures reviewed Draft policy Driver Record Review Policy None Policy has not been developed. Drug and Alcohol Policy LCW Law firm On hold while the District revising District's staff negotiated a new policy MOU for FY 2012-2015. Educational/Certification/License Draft Policy Comments from the Reimbursement Policy presented to Employees Assoc. Board Employees Assoc. due by 8/20/2012. Board on 8/1/2012. Employee Performance Evaluation HR Manager to Procedure review Draft policy in September 2012. Employee's Responsibility for Management On Hold. Maintenance of District Vehicles reviewed Draft policy. To be presented to BU for review and approval after MOU is adopted by the BOD Employee Time-Off Request Policy Draft policy Comments from the presented to Employees Assoc. Board Employees Assoc. due by 8/20/2012. Board on 8/1/2012. Facilities Use Policy HR/Risk Manager to Present Draft to Pers/Risk revise policy. Management Committee in September 2012. Heat Illness Prevention Program Safety Consultant HR/Risk Manager to revised in April review with Ops Manager 2012. for District applicability. Updated May 29, 2012 POLICIES AND PROCEDURES CONTINUED POLICIES AND PROCEDURES ACTIVITY STATUS Risk Management Admin Policy HR Mgr to review On Hold. Draft policy and comment Safety Footwear Allowance Draft policy Comments from the presented to Employees Assoc. Board Employees Assoc. due by 8/20/2012. Board on 8/1/2012. Recruitment Procedure Due to Update to be completed by implementation of the end of October 2012. NEOGOV recruitment software, the procedure will undergo updating by HR staff. New Hire Procedure Update to be Update to be completed by performed by HR the end of October 2012. staff. Separation/Termination Procedure Update to be Update to be completed by In process performed by HR the end of October 2012. staff. Student Intern Policy HR Manager to Present Draft to Pers/Risk review policy for Management Committee in current applicability. October 2012. TRAINING - ON SITE/OFF SITE DATE VENDOR CLASS TITLE 6/4/2012 PELRAC - Contract Attendance by one employee Language presented by Brenda Diedricks 6-4-2012 Heat Illness Prevention Twenty-four employees were trained in the Program morning session and 15 were trained in the afternoon session presented by Aspen Risk Management. 6-5-2012 GPS/Netfleet Conference — Five employees attended WMWD 8-7 and 8-8 ACWA/JPIA Training Nine Operations staff to attend at least one — 2012 Conference, Irvine, CA day of training 8-15-2012 Master COBRA seminar One HR staff to attend full-day workshop 8-21-2012 CalPERS Disability Two HR staff to attend one-half day Retirement and workshop Reinstatement Process workshop RECRUITMENTS MONTH POSITION APPLICATIONS PROCESSED 2011 January 2012 Part-time Public Affairs Intern 5 March 8, 2012 Maintenance Worker I (one position) 27 April 2, 2012 Customer Service Supervisor (one 55 position) May 17, 2012 Records Management Intern 12 July 20, 2012 Accounting Assistant II TBD at close of recruitment on 8/6/2012 CURRENT RISK MANAGEMENT/TORT CLAIM ACTIVITY DATE OF NATURE OF RISK ACTION TAKEN CLAIM HANDLED BY ISSUE/ CLAIM MANAGEMENT DISTRICT REC'D RELATED ISSUE/CLAIM &SUBMITTED TO ACWA/JPIA October 2011 Letters received from: 1) Under investigation by Both claims were Melanie Schlotterbeck and Risk Manager. Claims rejected and referred to 2) PCM on behalf of The presented to Pers-Risk ACWA/JPIA by the Kellogg Terrace Mgmt Committee for Board of Directors on Condominium Association recommendation that February 23, 2012. for damages claimed to the Board reject and ACWA/JPIA is awaiting have resulted from a leak refer both claims to a response. in Alamo Lane. ACWA/JPIA. November 14, Claim received by District Board rejected and 2011 from Aaron Goodall for referred claim to debris and dust issues ACWA/JPIA on 12/22/2011 March 2012 Claim filed on behalf of Claim rejected and MAMCO referred to ACWA/JPIA on May 24, 2012. April 2012 Claim filed by Thomas & Claim rejected and Debra Barker, 4/16/2012, referred to ACWA/JPIA $478.68, for repairs to on May 24, 2012. water heater they claim was damaged when service was shut off and restored to service on San Antonio Road 4/9/2012. DISTRICT'S CLAIMS ON THE ACWA/JPIA LIABILITY INSURANCE PROGRAM DATE OF NATURE OF RISK CLAIM SUBMITTED TO INCIDENT MANAGEMENT RELATED AMOUNTOF ACWA/JPIA ISSUE/CLAIM CLAIM 12-08-2011 Stater Bros. Parking Lot $334.82 Claim submitted. Payment received. 12-12-2011 Beech Street repairs $39,295.00 Claim submitted. Payment received. 12-29-2011 Granby Drive repairs $5,600.00 Claim submitted payment received 3-12-2012 Village Center Drive - TBD Claim referred to District's dump truck with ACWA/JPIA backhoe on trailer CURRENT WORKERS COMPENSATION ACTIVITY DATE OF NATURE OF W.C. CLAIM STATUS REPORTABLE INCIDENT INJURY 2-28-2012 Left foot pain Closed First Aid Only 3-12-2012 Scraped knee Closed First Aid Only 3-27-2012 Debris in eye Closed Yes 7-12-2012 Bee Sting Closed First Aid Only 7-24-2012 Cut Inside upper left arm Open Yes 7-25-2012 Carpal Tunnel left wrist Open Yes DISTRICT EMPLOYEE ACTIVITIES/FUNCTIONS MONTH ACTIVITY/FUNCTION DEPARTMENT 6-27-2012 Horseshoe Competition and Taco Employee Recognition Lunch Committee DISTRICT SAFETY AND WELLNESS- ACTIVITIES/FUNCTIONS MONTH ACTIVITY/FUNCTION DEPARTMENT 5-23-2012 Check AED's and log HR/SAFETY 6-4-2012 Confined Space Entry program review HR/SAFETY with managers, supervisors, leadworkers and Aspen Risk Management— 19 YLWD participants, 2 Aspen Risk Management participants 6-27-2012 Check AED's and log HR/SAFETY 6-27-2012 Hearing Testing conducted for 38 District HR/SAFETY employees 8-14-2012 First Aid/CPR/AED refresher training (two HR/SAFETY classes) will be conducted at the District. 9-11-2012 First Aid/CPR/AED initial training class will HR/SAFETY be conducted at the District HR ACTIVITIES/FUNCTIONS MONTH ACTIVITY/FUNCTION DEPARTMENT October 24, Health Benefits Fair will be held at the HR 2012 District. Flu shots will be available. November The Advantage Group will be at the HR 14-15, 2012 District for open enrollment for the Section 125 Cafeteria Plan (pre-tax medical and child/elder care deductions) and supplemental insurances 7-31-2012 With HR staff involvement, a complicated employee issue was resolved in less than a month (as opposed to the original six month estimate) As of August 1, 2012 FY 2012-2013 Budgeted Positions Salary Start Range Position Classification Budget Emp Status/Comments Date 1-11 (Temporary Help) 0 0 12 13 14 15 Customer Service Representative 1 1 2 Hired (1) temporary part-time staff member 16 Meter Reader 1 2 1 Vacancy due to employee's resignation on 6/21/2011. Vacant position on hold 17 Accounting Assistant 1 1 1 Customer Service Representative 11 1 1 Engineering Secretary 1 1 Maintenance Worker 1 9 12 (1) employee on Leave of Absence 6/4/2012 18 Meter Reader 11 2 2 19 Customer Service Representative 111 2 2 1 employee on Leave of Absence 4/24/2012 Operations Assistant 1 1 20 Engineering Technician 1 0 0 Maintenance Distribution Operator 11 8 6 Under filled with (2) Maint. Worker I positions Water Quality Technician 1 0 1 Position used to under fill authorized Water Quality Technician 11 position 21 Accounting Assistant 11 1 1 Employee submitted resignation effective 8- 9-2012. Recruitment opened 7-20-2012 and closes on 8-6-2012. Facilities Maintenance 1 1 Me chanic 11 1 1 22 Information Systems Technician 1 1 1 Water Quality Technician 11 1 0 Under filled with (1) WQT 1 23 Maintenance Distribution Operator 111 4 3 Under fill with one (1) MWI Meter Services Lead 1 1 Mechanic 111 1 1 Personnel Technician 1 1 Plant Operator 11 3 3 24 Construction Inspector 1 1 Engineering Tech 11 2 2 Info Systems Tech II/Programmer 1 1 25 Executive Secretary 1 1 Human Resources Analyst 1 0 (1)Vacancy due to employee resignation 7/5/2012 Instrumentation Technician 1 j 1 Sr.Accountant 1 1 1 As of August 1, 2012 FY 2012-2013 Budgeted Positions Salary Start Range Position Classification Budget Emp Status/Comments Date 26 GIS Administrator 1 1 Project Engineer 2 2 Sr. Construction Inspector 1 1 Sr. Fleet Mechanic 1 1 Sr. Maintenance Distribution Operator 4 4 Sr. Plant Operator 1 1 27 Customer Service Supervisor 1 1 28 Management Analyst 1 1 29 Water Quality Engineer 1 1 30 Public Information Officer 1 1 Employee on Leave of Absence 2/23/2012 Water Maintenance Superintendent 1 1 Employee on Leave of Absence 7/3/2012 SCADA Administrator 1 1 Information Systems Administrator 1 1 31 Chief Plant Operator 1 1 32 33 34 Sr. Project Manager 1 1 35 36 37 Engineering Manager 1 1 Finance Manager 1 1 Human Resources and Risk Manager 1 1 IT Manager IS Administrator assigned to Acting IT 1 0 Manager Operations Manager 1 1 38 39 40 General Manager 1 1 Employee on Leave 7/23/2012 Total 76 74 FY 2012-2013 Budgeted Part-Time/Intern Positions Salary Start Range Position Classification Budget Emp Status/Comments Date 1-11 Public/Governmental Affairs Intern 0.5 0.5 Records Management Intern 0.5 0 24 IGIS Technician 1 0.5 1 0.5 Total 1.6 1