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HomeMy WebLinkAbout2008-04-24 - Board of Directors Meeting Agenda Packetlion, W~w Agenda Packet Regular Meeting of the Board of Directors April 24, 2008 3:30 a. m. 1717 E. Miraloma Avenue, Placentia, CA 92870 ~ J AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, April 24, 2008, 8:30 A.M. 1717 E. Miraloma Ave. Placentia, CA 92870 (714) 701- 3020 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Ric Collett INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on this agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on 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. SPECIAL RECOGNITION Introduce Ruben Maldonado newly hired Water Quality Technician I, Engineering Department. Introduce Shelly Collins, Temporary Executive Secretary, Administrative Department. Introduce Jane Guo, Temporary Accounting Technician, Business Department. CONSENT CALENDAR (Items 1 through 4) All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, the staff, or the public requests further consideration. 1. Minutes of the Regular Board of Directors meeting held April 10, 2008. Recommendation: Approve the minutes as presented. 2. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $2,361,388.74. 3. Declaration of Restrictive Covenants Agreement - 5550 Sugar Pine Drive Recommendation: Authorize the President and Secretary to execute the Declaration of Restrictive Covenants Agreement with Miguel Chavez and Blanca Sanchez-Chavez subject to approval as to form by General Counsel. 4. Progress Payment No. 11 for the Lakeview Reservoir Construction. Recommendation: Approve Progress Payment No. 11 in the net amount of $811,325.25 to SSC Construction, Inc. for construction of the Lakeview Reservoir Project, Job No. 200704. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board actions. 5. Construction of the New District Administration Building Recommendation: That Board of Directors approve Change Order No. 12 in the amount of $104,891.45 and Final Progress Payment No. 13 in the net amount of $554,768.63 to J.E. Grant General Contractors; authorize staff to file the Notice of Completion and release the retention thirty five days following the recordation of the Notice of Completion, if no liens have been filed; release the Labor and Material Bond and release the Faithful Performance Bond in one year, if no defects have been found for the New Administration Building Project, Job No. 200313. 6. Financial Statements for the first and second quarters of fiscal year 2007-2008 for the periods ending September 30 and December 31, 2007 respectively. Recommendation: That the Board of Directors receive and file the financial statements for the first and second quarter of fiscal year 2007-2008 for the periods ending September 30 and December 31, 2007 respectively. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 7. Wells Capital Investment report for the third quarter of fiscal year 2007/08. Recommendation: This is for information only. No action is required. 8. Administration Building Update Recommendation: This is for information only. No action is required. REPORTS, INFORMATION ITEMS AND COMMENTS 9. a. President's Report b. Directors Reports c. General Managers Report -2- COMMITTEE REPORTS 10. a. Executive-Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett 1) Minutes of meeting held April 23 will appear in the Board agenda for May 15. 2) Meeting scheduled for May 20, 4:00 p.m. b. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills 1) Minutes of meeting held April 8. 2) Meeting scheduled for May 13, 4:00 p.m. c. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summerfield 1) Schedule a meeting. 2) Meeting scheduled for May 12, 4:00 p.m. d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1) Meeting scheduled for May 1, 4:00 p.m. e. Public Information Committee (Collett/Beverage) Alternate: Armstrong 1) Minutes of meeting held April 11. 2) Minutes of meeting held April 17. 3) Meeting scheduled for April 25, 4:00 p.m. f. Building Ad Hoc Committee (Beverage/Summerfield) Alternate: Armstrong 1) Schedule meeting. g. MWDOC Ad Hoc Committee (Mills/Beverage) Alternate: Collett 1) Minutes of meeting held April 22 will appear in the Board agenda for May 15. 2) Meeting scheduled for June 24, 4:00 p.m. -3- h. City of Placentia Ad Hoc Committee (Beverage/Payne) 1) Meeting to be scheduled. i. City of Yorba Linda Ad Hoc Committee (Summerfield/Payne) 1) Meeting to be scheduled. INTERGOVERNMENTAL MEETINGS 11. a. Yorba Linda City Council, April 15 (Armstrong) b. MWDOC Board, April 16 (Staff) c. OCWD Board, April 16 (Staff) d. Yorba Linda Planning Commission, April 23 (Summerfield) BOARD OF DIRECTORS ACTIVITY CALENDAR, Authorization to attend meetings scheduled after April 24, 2008. Agenda is available in the District office prior to meeting. April 2008 FCity of Placentia Dedication of Miraloma Ave., April 29, 8:30 a.m. District Board Tour, April 29, 9:00 a.m. Mav 2008 FPlanning-Engineering-Operations Committee, May 1, 4:00 p.m. I Mills/Armstrong WACO, May 2, 7:30 a.m. Public Information Committee, May 6, 4:00 p.m. I Collett/Beverage Yorba Linda City Council, May 6, 6:30 p.m. I Mills MWDOC/MWD Joint Workshop, May 7, 8:30 a.m. I Staff OCWD Board, May 7, 5:00 p.m. I Staff Personnel-Risk Management Committee, May 12, 4:00 p.m. I Armstrong/Collett Finance-Accounting Committee, May 13, 4:00 P.M. Beverage/Summerfield Yorba Linda Planning Commission, May 14, 7:00 p.m. I Collett District Board Meeting, May 15, 8:30 a.m. I Executive-Admin-Organizational Committee, May 20, 4:00 p.m. I Summerfield/Mills Yorba Linda City Council, May 20, 6:30 p.m. I Armstrong MWDOC Board, May 21, 8:30 a.m. I Staff OCWD Board, May 21, 5:00 p.m. I Staff Yorba Linda Planning Commission, May 28, 7:00 p.m. I Summerfield District Board Meeting, May 29, 8:30 a.m. -4- June 2008 Public Information Committee, June 3, 4:00 p.m. Yorba Linda City Council, June 3, 6:30 o.m. MWDOC/MWD Joint Workshop, June 4, 8:30 a.m. OCWD Board, June 4, 5:00 P.M. Planning-Engineering-Operations Committee, June 5, 4:00 p.m. WACO, June 6, 7:30 a.m. Personnel-Risk Management Committee, June 9, 4:00 p.m. Finance-Accounting Committee, June 10, 4:00 p.m. Yorba Linda Planning Commission, June 11, 7:00 p.m. District Board Meeting, June 12, 8:30 a.m. Executive-Admin-Organizational Committee, June 17, 4:00 p.m. Yorba Linda City Council, June 17, 6:30 o.m. MWDOC Board, June 18, 8:30 a.m. OCWD Board, June 18, 5:00 p.m. Yorba Linda Planning Commission, June 25, 7:00 p.m. District Board Meeting. June 26, 8:30 a.m. CONFERENCES AND SEMINARS I Collett/Beverage Mills I Staff I Staff Mills/Armstrong I Armstrong/Collett Beverage/Summerfield Collett I Summerfield/Mills Armstrong Staff I Staff Summerfield I 12. Authorize attendance of Directors and such staff members of the District as approved by the General Manager to attend the following conferences and seminars. a. None ADJOURN TO CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 13. Public Employee Performance Evaluation [Government Code Section 54957] Title: General Manager. ADJOURNMENT A regular meeting of the Board of Directors is scheduled for Tuesday, April 29, 2008, at 8:30 a.m., at 1717 E. Miraloma Avenue, Placentia, CA 92870. Accommodation 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 Michael A. Payne, General Manager/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. -5- 2008 BOARD OF DIRECTORS CALENDAR JAN FEB MAR • 0 S M T W T F 1 1[ 2 3 4 6 7 8 9M 11 13 14 15 16 17 18 20 21 22 23 ■ 25 27 28 29 30 31 S M 6 7 13 14 20 21 27 28 APR T W T 1F2- 3 8 9 10 15 16 17 22 23. ■ 30 S 5 12 19 26 F S 4 5 11 12 18 19 25 26 JUL S M T W T F S 1 2 W41 5 6 7 8 9 1 12 13 14 15 16 17 18 19 20 21 22 23M 25 26 27 28 29 30 31 OCT S M T W T F S 1 2 3 4 5 6 7 8. 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 31 Holiday Board Meeting Activities S 3 10 17 24 M T W T F S 1 2 4 5 6 7 8 9 11 12 13 - 15 16 181 19 20 21 22 23 25 26 27 28 29 MAY S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14- 16 17 18 19 20 21 22 23 24 25 261 27 28 M 30 31 AUG S M T W T F S 1 2 3 10 4 11 5 12 6 7 13= 8 15 9 16 17 24 18 25 19 26 20 21 27M 22 29 23 30 311 NOV S M T W T F S 1 2 9 3 10 4 5 6 111 12- 7 14 8 15 16 17 18 19 20 21 22 23 24 25 26, 27l 28[L9 301 S M T W T F S1 1 2 9 3 10 4 11 5 6 12 - 7 14 8 15 16 17 18 19 20 21 22 23 24 25 26M 28 29 30 311 JUN S M T W T F 1 8 2 9 3 10 4 5 11 6 13 7 14 15 22 16 23 17 24 18 19 25 26 20 27 21 28 29 301 SEP S M T W T F S 1f 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ® 26 27 28 29 30 DEC S M T 1 2 7 8 9 14 15 16 21 22 23 28 29 30 W T 3 4 low 17 18 24 31 F S 5 6 12 13 19 20 26127 PROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT 11,PR 200- ITEM NO. MINUTES OF THE YYORBA LINDA WATER DISTRICT B RD OF DIRECTORS REGULAR MEETING April 10, 2008 The April 10, 2008 regular meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 8:30 a.m. The meeting was held at the District's offices at 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT AT ROLL CALL STAFF PRESENT John W. Summerfield, President Michael A. Payne, General Manager William R. Mills Arthur G. Kidman, General Counsel Michael J. Beverage Kenneth R. Vecchiarelli, Asst. G.M. Richard P. Collett Lee Cory, Operations Manager Amelia Cloonan, Personnel Technici DIRECTORS ABSENT AT ROLL CALL Cindy Mejia, Assistant Administrator Paul R. Armstrong INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Brett R. Barbre, MWDOC Director MWDOC Director Barbre distributed an information sheet on water supply allocation. Each member agency must determine what they will do. In the next six months, the GM's group will be working on what needs to be in the allocation plan. On the central pool, they finished all the borings and found no flaws. Congressman Calvert asked everyone to work together. Senator Boxer will attend an inspection tour over the Memorial Day weekend. Brett Barbre left the meeting at 8:53 a.m. A brief ceremony was held to commem Plumosa office. SPECIAL RECOGNITION None the last board meeting to be held at the CONSENT CALENDAR (items 1 throuah 3) On a motion by Vice President Mills, seconded by Director Collett, the Board of Directors voted 4-0 to approve the Consent Calendar. Minutes of the Regular Board of Directors meeting held March 27, 2008. Recommendation: Approve the minutes as presented. 2. Minutes of the Regular Board of Directors meeting held April 2, 2008. Recommendation: Approve the minutes as presented. 4- 3. Payment of bills, refunds, and wire transfers. Recommendation: Ratify and authorize disbursements in the amount of $746,537.31. ACTION CALENDAR 4. Award of Construction Contract for the Highland Reservoir Replacement Project. Assistant General Manager Vecchiarelli presented the item. The District has a good working relationship with Schuler Engineering, and they have an excellent reputation in the industry. Director Collett queried the timeline for construction, which will be close to two years. Vice President Mills said the item came before the PEO Committee, and the members recommend approval of the award of contract. Assistant General Manager Vecchiarelli stated the first of the oil wells on the property are in the process of being properly abandoned. There was a question about venting and discussion about the tank and what will be occurring. On a motion by Vice President Mills, seconded by Director Beverage, the Board of Directors voted 4-0 to award a construction agreement to Schuler Engineering in the amount of $9,049,346 for construction of the Highland Reservoir Replacement Project, Job No. 200309. 5. SSC Construction, Inc. Change Order No. 1 for Construction of the Lakeview Reservoir Project. Assistant General Manager Vecchiarelli reported. An eight million gallon tank is being constructed on the site. The change order is the result of a delay claim. With this compensation and a 60-day non-monetary time extension at the end of the project, the change order has been signed by the contractor. Vice President Mills said the item came to the PEO Committee, and they agreed it should be sent to the Board for approval. On a motion by Vice President Mills, seconded by Director Collett, the Board of Directors voted 4-0 to approve Change Order No. 1 in the amount of $150,000 to SSC Construction, Inc., extend the contract by 60 calendar days and authorize the General Manager to either waive the requirement for extending the Builders Risk Insurance when coverage expires on July 21, 2008 or to reimburse SSC for the premium to extend this policy through completion of the Lakeview Reservoir Project, Job No. 200704. 6. Consider changing the May 8 and May 22, 2008 Board Meeting dates. General Manager Payne presented the item. The ACWA Conference to be held May 6 through 9 will be attended by Vice President Mills, Director Armstrong, General Manager Payne and Assistant General Manager Vecchiarelli. On a motion by Director Beverage, seconded by Director Collett, the Board of Directors voted 4-0 to approve moving the Board meetings in May to May 15 and May 29. -2- DISCUSSION ITEMS 7. Administration Building move update. General Manager Payne reported. Identification cards were distributed to the Directors. The office will be closed Friday, April 11 for packing and moving. The new administration offices will be open on Monday, April 14. Recommendation: This was for information only. No action was required. REPORTS. INFORMATION ITEMS AND COMMENTS 8. a. President's Report President Summerfield reported on the move of his business office. b. Directors Reports Vice President Mills attended the Water Education Foundation Executive Briefing. There was discussion about the peripheral canal and the Delta. c. General Managers Report Staff will attend the Water Forum scheduled for May 2. Information about the employee picnic being held at Knott's Berry Farm on Saturday, May 3 was presented to the Board members. An employee breakfast is also planned to be held at the new Administration building in lieu of the Employee Recognition Dinner. d. General Counsel's Report General Counsel Kidman stated that after the last Board meeting he made limited distribution of the memorandum presented to the Board of Directors. There were some inquiries. It appears there is a loose group of interested organizations that will be involved if this goes anywhere. COMMITTEE REPORTS 9. a. Executive-Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett 1) Meeting scheduled for April 15, 4:00 p.m. Director Collett will attend as the alternate. The meeting will take place in the Board Closed Session Room at 1717 East Miraloma Avenue, Placentia. b. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills 1) Minutes of meeting held March 25. Director Beverage reported. A document needed to be signed for the 2003 COP's, because the insurance company's rating fell below the rates specified. The Committee joined in a conference call regarding the District's investments with Keith Khorey and Michael Rodgers of Wells Capital. Investments will be left as they are for now. The issue will be revisited at the next Finance-Accounting Committee meeting. A status report on the -3- Orange County commingled Investment Pool was presented. The District pulled all of its investments out of the pool and the account is now closed. President Summerfield asked that the Finance-Accounting Committee take a look at what the Board philosophy is on investments. 2) Minutes of meeting held April 8 will appear in the Board Agenda for April 24. 3) Meeting scheduled for May 13, 4:00 p.m. c. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summen`ield 1) The meeting scheduled for April 14 will be reschedule d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1) Minutes of meeting held April 3. Vice President Mills reported. Creek lining, a status report on tl a status report on the Meter Rep Terms and Conditions for Water were also discussed. Messrs. S meeting to discuss a tentativE developed Casino Ridge. The ( state the District is still in comm askinq the Citv to master plan so Discussion items included: the Furnace ie Preventative Maintenance Program and acement and Radio Read Retrofit Project. Service for the King Family Development antos, Thompson and Cornwell joined the project extending north of the newly 3eneral Manager is to contact the City to unication about the matter. The District is the project is not piecemealed. Chief Plant Operator De Criscio presented monthly water production and purchased imports through March 2008. Other items included: Construction Agreement for the Highland Reservoir Replacement Project, Change Order No. 1 to SSC Construction, Inc. and a report by Assistant General Manager Vecchiarelli on the monthly Orange County Groundwater Producers meeting. 2) Meeting scheduled for May 1, 4:00 p.m. e. Public Information Committee (Collett/Beverage) Alternate: Armstrong 1) Meeting scheduled for April 11, 8:30 a.m. 2) Meeting scheduled for May 6, 4:00 p.m. -4- f. Building Ad Hoc Committee (Beverage/Summerfield) Alternate: Armstrong 1) The meeting scheduled for April 17 was cancelled. A wrap-up meeting will be scheduled. g. MWDOC Ad Hoc Committee (Mills/Beverage) Alternate: Collett 10 1) Meeting scheduled for April 22, 4:00 p.m. h. City of Placentia Ad Hoc Committee } (Beverage/Payne) 1) Meeting to be scheduled. The meeting will be scheduled for May. City of Yorba Linda Ad Hoc Committee (Summerfield/Payne) 1) Meeting to be scheduled. We are checking with Dave Gruchow to see if he can fit it in and coordinate with the mayor. a. Yorba Linda City Council, April 1 Vice President Mills attended. The City Council wants to set up an equestrian committee made up of interested citizens. b. MWDOC/MWD Joint Workshop, April 2 No one attended due to the YLWD Board workshop held on the same date and time. c. OCWD Board, April 2 about their budget. d. Yorba Linda Planning Commission, April 9 No Director attended. The City Council agendas are available on line the Thursday before the meeting. In the future the agendas will be accessed by the attending Directors online. The Directors preferred to receive paper copies of the Planning Commission agendas. -5- BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after April 10, prior to meeting. 2008. Agenda is available in the District office ADril 2008 Personnel-Risk Management Committee, April 14, 4:00 p.m Cancelled. To be rescheduled. Executive-Admin-Organizational Committee, April 15, 4:00 p.m Yorba Linda City Council, April 15, 6:30 p.m. MWDOC Board, April 16, 8:30 a.m. OCWD Board, April 16, 5:00 p.m. Building Ad Hoc Committee, April 17, 4:00 p.m. MWDOC Ad Hoc Committee Meeting, April 22,4:00 p.m. Yorba Linda Planning Commission, April 23, 7:00 p.m. Armstrong/Collett Summerfield/Mills Armstrong Staff Staff Beverage/Summerfield Mills/Beverage Summerfield District Board Meeting, April 24, 8:30 a.m. Dedication Ceremony of Miraloma Avenue April 29, 8:30 a.m. All Board Members District Board Tour, April 29, 9:00 a.m. All Board Members Mav 2008 FPlanning-Engineering-Operations Committee, May 1, 4:00 p.m. Mills/Armstrong WACO, May 2, 7:30 a.m. Public Information Committee, May 6, 4:00 p.m. Collett/Beverage Yorba Linda City Council, May 6, 6:30 p.m. Mills MWDOC/MWD Joint Workshop, May 7, 8:30 a.m. Staff OCWD Board, May 7, 5:00 p.m. Staff District Board Meeting, May 8, 8:30 a.m. To be rescheduled Personnel-Risk Management Committee, May 12, 4:00 p.m. Armstrong/Collett Finance-Accounting Committee, May 13, 4:00 p.m. Beverage/Summerfield Yorba Linda Planning Commission, May 14, 7:00 p.m. Collett Executive-Admin-Organizational Committee, May 20, 4:00 p.m. Summerfield/Mills Yorba Linda City Council, May 20, 6:30 p.m. Armstrong MWDOC Board, May 21, 8:30 a.m. Staff OCWD Board, May 21, 5:00 p.m. Staff District Board Meeting, May 22, 8:30 a.m. To be rescheduled Yorba Linda Planning Commission, May 28, 7:00 p.m. Summerfield CONFERENCES AND SEMINARS 11. Authorize attendance of Directors and such staff members of the District as approved by the General Manager to attend the following conferences and seminars. a. Community Leaders Briefing, Friday, April 18, 7:30 a.m. to 9:00 a.m. b. ACWA's 2008 Legislative Symposium, April 26, 2008, c. Orange County Water Summit, May 2, 7:30 a.m. to 1:30 p.m. -6- ADJOURN TO CLOSED SESSION 12. None ADJOURNMENT On a motion by Vice Directors voted 4-0 at Directors scheduled for Placentia 92870. President Mills, seconded 10:31 a.m. to adjourn to a April 24, 2008, 8:30 a.m., -7- by Director Collett, the Board of regular meeting of the Board of at 1717 East Miraloma Avenue, ITEM NO. AGENDA REPORT Board Meeting Date: April 24, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: APPROVED BY THE BOARD OF DIRECTNS OF THE YORBA LINDA WATER DISTRICT q F1 2 Yes Total Budget: N/A All Funds N/A Job No: N/A $2,361,388.74 Dept: Bus Subject: Payments of Bills, Refunds, and Wire transfers SUMMARY: Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors' approval. DISCUSSION: The major items and wire transfers on this disbursement list are as follows: A wire of $2,216.23 to Bank of America for March 2008 visa payment; a wire of $302,505.22 to MWDOC for February 2008 water purchase; a wire of $22,802.01 to Hardin Automotive for 2008 Civic Hybrid; a wire of $90,127.25 to First Regional Bank for Job 0704 retention payment; a check of $64,523.56 to Aqua-Metric Sales for in-house materials; a check of $554,768.63 to J.E. Grant General Contractors for Job 0313 final payment; and, a check of $811,325.25 to SSC Construction Inc. for Job 0704 progress payment. The balance of $296,276.38 is routine invoices. In summary, the check register total is $2,144,544.53; payroll No. 7 total is $216,844.21; and, the disbursements of this agenda report are $2,361,388.74. A summary of the checks is as follows: Pavables: Void Checks Check Nos. 48618 and 48686 Manual Checks Check Nos. 48705 - 48710 Computer Checks Check Nos. 48711 - 48793 Pavroll #7: Manual Check Check Nos. 3835 Void Checks Check Nos. 3836 - 3870 Computer Checks Check Nos. 3871 - 3881 Manual Checks Check Nos. 3882 - 3893 The disbursement total for the current period is $2,361,388.74, distributed as follows: Water $2,345,657.29 Sewer $ 15,151.96 ID #1 $ 403.54 ID #2 $ 175.95 TOTAL $2,361,388.74 PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $2,361,388.74. April 24, 2008 CHECK NUMBERS 48618 AND 48686 $ 48705 TO 48793 $ WIRES: W-41108 Bank of America $ W-41408 MWDOC $ W-42408 Hardin Automotive $ W-42408A First Regional Bank $ TOTAL OF CHECKS AND WIRES: PAYROLL NO. 7: CHECK NUMBERS: 0.00 1,726,893.82 2,216.23 302,505.22 22,802.01 90.127.25 417,650.71 $ 2,144,544.53 3835 TO 3893 $ 216,844.21 TOTAL: $ 2,361,388.74 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF APRIL 24, 2008 TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS AS FOLLOWS: WATER $2,345,657.29 SEWER $ 15,151.96 ID # 1 $ 403.54 ID # 2 $ 175.95 TOTAL: $2,361,388.74 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 04-11-08 THRU 04-24-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 48713 04-24-08 04-24-08 ABIGAIL ABBOTT STAFFING SVC 1,768.00 48710 04-15-08 04-15-08 AMERICAN POWER CONVERSION 41,376.04 48714 04-24-08 04-24-08 ANAHEIM WHEEL & TIRE 875.50 48715 04-24-08 04-24-08 AQUA-METRIC SALES CO. 64,523.56 48716 04-24-08 04-24-08 ARROW HARDWARE 606.46 48618 04-10-08 04-11-08 ART VEGA -1,590.00 48717 04-24-08 04-24-08 ASSOCIATED LABORATORIES 3,482.00 48718 04-24-08 04-24-08 AWWA 173.00 W41108 04-11-08 04-11-08 BANK OF AMERICA 2,216.23 48719 04-24-08 04-24-08 BELL PIPE & SUPPLY 511.84 48720 04-24-08 04-24-08 CADET UNIFORM SERVICE 871.42 48721 04-24-08 04-24-08 CDW-G GOVERNMENT, INC 792.42 48722 04-24-08 04-24-08 CHARLES P. CROWLEY CO. 211.03 48723 04-24-08 04-24-08 CITY OF ANAHEIM 11,968.49 48724 04-24-08 04-24-08 CITY OF ANAHEIM 24,676.71 48725 04-24-08 04-24-08 CLA-VAL CO. 305.37 48726 04-24-08 04-24-08 CLINICAL LAB. OF SAN BERN. 1,145.00 48727 04-24-08 04-24-08 COASTLINE EQUIPMENT 25.38 48728 04-24-08 04-24-08 COM SER CO 1,828.75 48729 04-24-08 04-24-08 DAPPER TIRE CO. INC. 732.38 48730 04-24-08 04-24-08 DATALOK ORANGE COUNTY 377.72 48731 04-24-08 04-24-08 DELL MARKETING L.P. 8,883.06 48732 04-24-08 04-24-08 DELTA DENTAL - PMI 297.24 48733 04-24-08 04-24-08 DIGITAL INSTALLERS INC 3,543.85 48734 04-24-08 04-24-08 E. G. BRENNAN & CO., INC 634.35 48735 04-24-08 04-24-08 EISEL ENTERPRISES, INC. 137.38 48736 04-24-08 04-24-08 ENVIRONMENTAL ASSOCIATES, LTD 2,200.00 42408A 04-24-08 04-24-08 FIRST REGIONAL BANK 90,127.25 48737 04-24-08 04-24-08 FRY'S ELECTRONICS 555.68 48738 04-24-08 04-24-08 GARDEN GATE FLOWER SHOP 129.28 W42408 04-24-08 04-24-08 HARDIN AUTOMOTIVE 22,802.01 48739 04-24-08 04-24-08 HARDY & HARPER INC. 11,840.00 48740 04-24-08 04-24-08 INFOSEND 8,385.81 48708 04-11-08 04-11-08 INTEROP/CSI SX/SOFTWARE 2008 1,590.00 48741 04-24-08 04-24-08 INTEROP/CSI SX/SOFTWARE 2008 1,590.00 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 04-11-08 THRU 04-24-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 48742 04-24-08 04-24-08 J. TODD HOWARD 119.36 48743 04-24-08 04-24-08 J.E. GRANT GENERAL CONTRACTORS 554,768.63 48744 04-24-08 04-24-08 JENNIFER HILL 133.99 48745 04-24-08 04-24-08 JOCELYN VILLANUEVA 240.62 48746 04-24-08 04-24-08 LINCOLN NATIONAL LIFE 1,724.11 48747 04-24-08 04-24-08 LLOYD PEST CONTROL 63.00 48748 04-24-08 04-24-08 MANAGEMENT ACTION PROGRAMS INC 1,900.00 48749 04-24-08 04-24-08 MC FADDEN-DALE HARDWARE 898.44 48750 04-24-08 04-24-08 MC MASTER-CARR SUPPLY CO. 331.47 48751 04-24-08 04-24-08 McCORMICK,KIDMAN & BEHRENS LLP 13,992.17 48752 04-24-08 04-24-08 MICHAEL PAYNE 258.45 48753 04-24-08 04-24-08 MIGUEL SERNA 545.00 48754 04-24-08 04-24-08 MINUTEMAN PRESS 38.26 48755 04-24-08 04-24-08 MORELAND & ASSOCIATES, INC 775.00 48756 04-24-08 04-24-08 MTGL, INC. 420.00 48757 04-24-08 04-24-08 MUNICIPAL WATER DISTRICT 477.00 W41408 04-14-08 04-14-08 MUNICIPAL WATER DISTRICT 302,505.22 48758 04-24-08 04-24-08 NICKEY PETROLEUM CO 4,943.52 48759 04-24-08 04-24-08 NORMAN A. TRAUB ASSOCIATES 6,276.25 48760 04-24-08 04-24-08 OFFICE SOLUTIONS 417.95 48761 04-24-08 04-24-08 ONE STOP SIGNS & GRAPHICS 2,957.09 48762 04-24-08 04-24-08 ORANGE COUNTY - AUDITOR/CONT 175.00 48763 04-24-08 04-24-08 ORANGE COUNTY - I W M D 2,342.51 48711 04-24-08 04-24-08 PAUL TRAN 33.54 48764 04-24-08 04-24-08 PEGGY McCLURE 105.00 48765 04-24-08 04-24-08 PLACENTIA DISPOSAL 366.48 48766 04-24-08 04-24-08 PLUMBING AND INDUSTRIAL SUPPLY 22.52 48767 04-24-08 04-24-08 PRAXAIR DISTRIBUTION 165.09 48768 04-24-08 04-24-08 QUINN POWER SYSTEMS ASSOCIATES 27,407.39 48769 04-24-08 04-24-08 SAFETY-KLEEN CORP. 288.15 48770 04-24-08 04-24-08 SARBS - CWEA 230.00 48771 04-24-08 04-24-08 SC FUELS 1,565.16 48772 04-24-08 04-24-08 SHRED-IT LOS ANGELES 68.60 48773 04-24-08 04-24-08 SIMPSON GMC 83.02 48774 04-24-08 04-24-08 SOUTH COAST AQMD 2,318.18 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 04-11-08 THRU 04-24-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 48706 48707 48705 48775 48776 48777 48778 48779 48686 48709 48780 48781 48782 48783 48784 48712 48785 48786 48787 48788 48789 48790 48791 48792 48793 04-11-08 04-11-08 04-11-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-10-08 04-11-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-11-08 04-11-08 04-11-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-11-08 04-11-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 04-24-08 SOUTHERN CALIF EDISON CO. SOUTHERN CALIF EDISON CO. SOUTHERN CALIF GAS CO. SOUTHERN CALIF GAS CO. SOUTHERN COUNTIES SSC CONSTRUCTION, INC ST.JOSEPH HERITAGE HEALTHCARE STACY BAVOL/PETTY CASH STAPLES STAPLES BUSINESS ADVANTAGE STATE OF CALIF-DEPT OF HEALTH STATER BROS. MARKETS SUNNY EXPRESS INC. SUNRISE MEDICAL GROUP SUPPORT PRODUCT SERVICES T C CONSTRUCTION TOXGUARD FLUID TECHNOLOGIES UNITED INDUSTRIES USA BLUE BOOK VICTOR BUICK GMC WEIR CANYON CHEVROLET WELLS SUPPLY CO WESTSIDE BUILDING MATERIAL YORBA LINDA AUTO PARTS YORBA LINDA DISPOSAL SERVICES 45,590.22 1,040.37 23,030.44 50.00 1,607.58 811,325.25 320.00 249.48 -2,171.08 2,171.08 H 4,575.67 22.89 54.00 809.80 13,853.42 391.18 655.02 403.47 110.65 237.08 59.83 957.91 191.26 410.58 49.05 2,144,544.53 ITEM NO. 3 AGENDA REPORT Board Meeting Date: April 24, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Kenneth R. Vecchiarelli, Asst. General Manager Earl Hamanaka, Engineering Technician Reviewed by General Counsel: Yes Budgeted: N/A Funding Source: N/A CEQA Account No: N/A Compliance: N/A Estimated Costs: N/A APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT BY Total Budget: N/A Job No: Dept: Eng Subject: Declaration of Restrictive Covenants Agreement - Sugar Pine Drive SUMMARY: Occasionally, staff receives and reviews requests for construction of block walls within District dedicated easements. To insure the District's use of these easements is not unduly restricted, the District requires execution of a recorded Declaration of Restrictive Covenants. This document acknowledges the limitations of the allowed joint use and establishes the responsibility of the property owner and their successors for the maintenance and replacement costs of any improvements that may be damaged or removed by the District in order to gain access to the public facilities within the easement. DISCUSSION: The District has a 15-foot wide dedicated easement along the northerly property line of 5550 Sugar Pine Drive. This easement contains a 6-inch water pipeline owned and operated by the District, which loops the pipeline in Sugar Pine Drive to Casson Drive. The property owners, Blanca Sanchez-Chavez and Miguel Chavez have requested an encroachment within this easement to construct a 6-foot high block wall. Staff has reviewed this request and has determined that the improvements do not unduly restrict the District's continued use of this easement. The owners have agreed to and executed the attached Declaration of Restrictive Covenants, further protecting the District's rights to remove any and all portions of the block wall if required to maintain and repair the 6-inch water pipeline at no cost to the District. The Declaration of Restrictive Covenants is attached for consideration by the Board of Directors and execution if approved. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors has considered and approved similar requests throughout the District's service area. STAFF RECOMMENDATION: Authorize the President and Secretary to execute the Declaration of Restrictive Covenants Agreement with Miguel Chavez and Blanca Sanchez-Chavez subject to approval as to form by General Counsel. RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of in official service thereof. Michael A. Payne - Secreta U Space Above This Line for Recorder's Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON DISTRICT EASEMENT) THIS DECLARATION OF RESTRICTIVE COVENANTS ("Declaration") is made this 24th day of April, 2008, by and between YORBA LINDA WATER DISTRICT ("YLWD"), a public agency, created and operating under the authority of Division 12 of the California Water Code, and Miguel A. Chavez and Blanca Sanchez-Chavez ("Owner"), with reference to the following recitals of fact: RECITALS A. The Owner is the legal owner of that certain real property located at 5550 Sugar Pine Drive, Yorba Linda, California 92886 ("Subject Property"), which is more particularly described as follows: Lot 22 of Tract 12289, in the City of Yorba Linda, County of Orange, California as per map recorded in Book 592, Pages 42, 43 and 44, of Miscellaneous Maps in the Office of the County Recorder of said County B. YLWD owns an Easement, as identified on Instrument No. 87-712659, recorded on December 29, 1987, in Book 592, Pages 42-44 in Official Records of Orange County, California ("Easement"), across a portion of the Subject Property. Within the Easement, YLWD owns and maintains a 6-inch water pipeline ("District Facilities"). C. The Owner desires to construct a 6-foot high block wall (collectively herein referred to as "Improvements") within the Easement area (hereinafter, "Encroachment"), as illustrated in Exhibit "A," attached hereto and incorporated by reference herewith. The proposed wall encroaches on a 15- foot wide easement over an existing 6-inch water pipeline which was constructed in July 1988. D. YLWD conditionally consents to Encroachment of the Improvements within the Easement area as stipulated in this Declaration. Owner is aware that the Improvements may lead to problems affecting and/or interfering with YLWD's use of the Easement. E. Although the construction of the 6-foot high block wall within the Easement area may interfere or restrict YLWD's Easement rights, the Owner wishes to construct and use the Improvement within or along the Easement area. NOW, THEREFORE, incorporating the above recitals, YLWD and Owner declare as follows: 1. Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assiuns Bound. Since Owner wishes to retain the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any future adverse events and to fund any necessary maintenance costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages caused by the Encroachment. 3. Damages to District Facilities. Owner assumes full responsibility, liability and shall pay for any cost(s) or damage(s) to the District Facilities and appurtenant structures, arising from or related to the construction, existence, and/or use of the Improvements. YLWD shall not be responsible for any cost(s) or damage(s) to the District Facilities and appurtenant structures that arise from the Encroachment. 4. Damages to Third Parties. Owner, its successors or assigns, agrees to indemnify and hold YLWD, its officers, directors, employees, agents and consultants, harmless against any third party claims related to or arising out of the construction, existence and/or use of the Improvements. S. Damages to Improvements. Owner acknowledges that the Improvement may be damaged or demolished to permit reasonable access to or reasonable work within and under the Easement area. YLWD, its officers, directors, employees, agents and consultants, shall not be responsible for any damage(s) to or because of the Improvement which results from YLWD's exercise of rights under the Easement. Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys' fees) against YLWD, its officers, directors, employees, agents and consultants, for losses and damages to the Improvement and from any obligation to protect, preserve, repair, or replace the Improvement. Construction, use, protection, repair and replacement of the Improvement shall be entirely the risk and obligation of Owner, its successors or assigns, even if damage is caused by YLWD. 6. Recording of Agreement. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations set forth herein. Approved as to Form: McCormick, Kidman & Behrens, LLP YORBA LINDA WATER DISTRICT Art ur G. Kidman General Counsel John W. eld President Michael A. Payne Secretary OWNER: ViguelA. Chavez Bianca Sanchez-Chavez BUENA VISTA AVE. GREEN PINE DR. z gIRCH{T CIR w ? SITE ~ co SILVER TIP CIR a ui BRISTLE CONE LN. z z I Q U MAJESTIC CYPRESS WY VICINITY MAP I i I I -WATER EASEMENT W I BY Y.L.W.D. 21 7 I ~ 11 2 EX.6 ACP z I 5550 a I Q I SUGAR PINE DRIVE C~ 001 x ul I I ~12~1 52' ti - 6 26' 2~ 1 23 LOCATION MAP 0 O ry 0 J w U m r i~rr I PROPOSED 6 FOOT BLOCK WALL Exhibit "A"' PREPARED BY: DECLARATION OF YORBA LINDA WATER DISTRICT RESTRICTIVE COVENANT IRL FOR 5550 SUGAR PINE 4622 PLUMOSA DRIVE DRIVE . .-A red iFnRNIA92886 1 SCALE: 1" = DATE: 04- FILENAME: CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT .a..~tiwh~wc-cwt ~wb~..+ntwra~wr>.~ -.yn .,.:~r`.~:.'v •-n ~ v`~x4~:k._,.-~~..rlt..rl~wrl~v,~~~.r4~v.-~~~~.~..,r L~~..vl~..v,.t .-1~~1tiwti ~~,Y.:aQL~~Se`"..aw.,~tiv~rt~ State of California County of ORANGE J On April 24, 2008 before me, Amelia Cloonan, Notary Public Date Here Insert Name and Title of the Officer personally appeared John W. Summerfield, Michael A. Payne Name(s) of Signer(s) AMELIA CLOONAN Commtalon 17a20T0 Notary Koff - Collfomta Orange County CZM Dec 2oII who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s).ia/are subscribed to the within instrument and acknowledged to me that he4;he/they executed the same in-hi 4;w/their authorized capacity(ies), and that by hiss h r/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature r .~la,c-c Place Notary Seal Above Signa ure of o ary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Declaration of Restrictive Covenants Title or Type of Document: 5550 Sugar Pine Drive, Yorba Linda CA 92886 Document Date: April 24, 2008 Number of Pages: four Signer(s) Other Than Named Above: Miguel A. Chavez, Blanca Sanchez-Chavez Capacity(ies) Claimed by Signer(s) Signer's Name: John W. Summerf ield ❑ Individual ❑ Corporate Officer - Title(s): ❑ Partner - ❑ Limited ❑ General 1111,77,7EPMir, -7-7-M ❑ Attorney in Fact • ❑ Trustee Top of rhumh licie ❑ Guardian or Conservator ❑ Other: President of the Board of Directors Signer Is Representing: Yorba Linda Water District Signer's Name: Michael A. ❑ Individual ❑ Corporate Officer - Title(s): ❑ Partner - ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Secretary/GM Signer Is Representing: Yorba Linda Water District Payne $I WECI 01 :4 lop ,,r Ihumh ®2007 National Notary Association- 9350 De Soto Ave., P.O. Box 2402 -Chatsworth, CA 91313-2402 • www.NationalNotary.org Item #5907 Reorder: Call Toll-Free 1-800.876-6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT -~0,4 tww~ s..._ v ♦vL sw>c:Y.CN~t'.f~~\~:fo\Gli ~.F--ls,P\~.i A 1yc-.r_l~w?:_, _ - _ ti~~.~E:e:.rr`e~:f,t~+.4;`c,4a4Ka c r e Xn ~u.d..;..ti-Zr. -1,~•w>t State of California County of I f On a //1i1-6CX bore me, 6NeRnv 1 rMi Qp►E.n fiitleNof OtheTARYOfficerPUBLIC t Date 1/ ere nsertTJame an personally appeared A ~'1 p Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized SHARILYN MALLONEE capacity(ies), and that by his/her/their signature(s) on the a C Commission # 1511135 Notary Public - Callfornia instrument the person(s), or the entity upon behalf of Orange County _ which the person(s) acted, executed the instrument. My Comm. Expires Sep 2, 2008 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date:(l.+k~~ (-v, +c • `f~~`~~~~~/ o~- y~I}fo Number of Pages:( JiJ Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: -i?; Individual ❑ Corporate Officer - Title(s): ❑ Partner - ❑ Limited C' General ❑ Attorney in Fact Top of thumb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: Sig er Is Representing: G' Signer's Name: ❑ Individual ❑ Corporate Officer - Title(s): ❑ Partner - ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: . " W-A u,;~,t.~7~C;~.~;~'i~S,;K..-E;~v~l;~:u„~.~~:~•~.~.~lplc:~;~:~i~+k:K.~t>~~~'+C".~:~~.~.+C:~l;~+k;~l1W~-k:~~1~~~+F;~~'~P~•~7 02007 National Notary Assrociatttiionnn-9350DeSoto Ave.,PO.Box2402•Chatsworth, CAA9913'13-,2,40'2• wQww.N'aattiona-lNoot,aryy.orlg Item _#5907 Reorder Call Toll-Free 1-800-88776-6~82~j7 ~~~.tii"~~ti'~Yr..c~ti~ L'►'I C`~-~1.t:~~(-t~t,A.-E~/V1~.k^a~% / J CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT -IVA& of California County of P,4'►~ r ~ 5_1_~' On NEE, NOTIARY PUBLIC ` ~ l't, f before me, SHARILYN MALLO Date Here Insert Name and Title of the Officer personally appeared Name(s) of Signegk1 SHARILYN MALLONEE Commission # 1511135 i OMY Notary Public - California Orange County Comm. Expires Sep 2, 2008 who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature °tl~~- ✓~~jYt~~ Place Notary Seal Above Gignature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document G~ y Title or Type of Document: 1~ 1,L~~^~ f /`-fi't' LIGC Grp"1 `2NlGr.~r~~ Document Date: -i- )-LIE ,z.NU Nurser of Pages: ( 3 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: yl?, C,/ ~ vl_44 1 _,eAjL Signer's Name: 7 Individual a ❑ Individual ❑ Corporate Officer - Title(s): ❑ Corporate Officer - Title(s): ❑ Partner - ❑ Limited ❑ General ❑ Partner - ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator El Other: r~ Signer Is Representing: Signer Is Representing: Top of thumb here w~~c.~cuc~-c;~ ~•~~--c:~:~-c:~e:.~%e.~-vw~~.c:~w~=~~s;~~;`<=E:~~%c:~w~:~cww~* s.~,..J,.~,~--+~s%E.t=c~.~.~~~::~=tu.~~w~i 02007 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www,Nationa[Notary.org Item #5907 Reorder: Call Toll-Free 1-800-876-6827 A tX I~Li P~~1'r t M ) ,1. ~ ~i.( Ifvtl y L j~ l / 2 G • ❑ Attorney in Fact Top of thumb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: ITEM NO. Y AGENDA REPORT Board Meeting Date: April 24, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Ken Vecchiarelli, Assistant General Manager Joe Polimino, Project Engineer APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDAWATER DISTRICT APR 2 4420.5,,- BY Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 11.5M Funding Source: District and Developer Funds CEQA Account No: 101-2700 Job No: 200704 Compliance: Mitigated Neg. Dec. Estimated Costs: $ 11.5M Dept: Eng Subject: Progress Payment No. 11 for the Lakeview Reservoir Construction SUMMARY: On January 25, 2007, the District Board of Directors authorized the execution of an agreement with SSC Construction, Inc. (SSC) for construction of an 8-million gallon underground concrete reservoir, piping and appurtenances. The project also includes demolition of the existing Bastanchury Booster Pump Station and Reservoir (two steel storage tanks). The site is located north of Bastanchury Road off the new Lakeview Avenue extension, north of the Hover Development and south of Vista Del Verde's Village 4. When completed, the project will increase operational, fire and emergency storage capacity, retain better water quality through improved circulation and improve reliability of the water system. DISCUSSION: In accordance with the contract documents, SSC submitted a request for Progress Payment No. 11, in the net amount of $811,325.25 for completed work through March 31, 2008. During this period, the contractor began to remove shoring under the West Bay roof slab, completed rebar and deck forms for the center and east roof slab sections and pour concrete to complete the overall reservoir roof. Concrete finishing is progressing in the west bay floor slab and various pipe installations continue on the project. Also included in this pay request is Change Order No. 1 in the amount of $150,000 as approved on April 10, 2008. The status of the construction contract with SSC Construction, Inc. is as follows: • The current contract is $10,639,500 and 547 calendar days starting June 18, 2007. • If approved, Progress Payment No. 11 is $901,472.50 (8.5% of the total contract amount), less 10% retention of $90,147.25 for a net payment of $811,325.25. • Total payments to date including retention are $7,673,199.10 (72.1% of the total contract amount) • As of March 31, 2008, 288 calendar days were used (52.7% of the contract time). Staff and Parsons, the District's consulting engineer for the project, have reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 11 is attached for your reference. PRIOR RELEVANT BOARD ACTION(S): On January 25, 2007, the District Board of Directors approved and awarded a construction contract with SSC Construction, Inc. in the amount of $10,489,500 for construction of an 8 million gallon underground concrete reservoir, piping and appurtenances, and demolition of the existing Bastanchury Booster Pump Station and Reservoir. On April 10, 2008, the District Board of Directors approved Change Order No. 1 increasing the total contract amount to $10,639,500 and total contract calendar days to 547. The Board has approved ten progress payments to date for this project, the most recent of which was approved on March 27, 2008. STAFF RECOMMENDATION: Approve Progress Payment No. 11 in the net amount of $811,325.25 to SSC Construction, Inc. for construction of the Lakeview Reservoir Project, Job No. 200704. w YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Lakeview Reservoir Project PROGRESS PAY REQUEST NO. 11 LOCATION Yorba Linda, CA PROJECT NO. 200704 PAGE 1 OF 1 PAGES CONTRACTOR SSC Construction, Inc. DATE 3/31/08 ORIGINAL CONTRACT AMOUNT: $ 10,489,500 AUTHORIZED CHANGE ORDERS: $ 150,000 REVISED CONTRACT AMOUNT: $ 10,639,500 PROGRESS PAY ESTIMATE FOR PERIOD VALUE OF WORK COMPLETED CHANGE ORDER WORK. COMPLETED TOTAL VALUE OF WORK COMPLETED LESS RETENTION 10% LESS OTHER DEDUCTIONS NET EARNED TO DATE LESS AMOUNT PREVIOUSLY PAID BALANCE DUE THIS ESTIMATE 00-16-/Nit L CDAv'Ti24e-T APPROVED TIME EXTENSIONS TOTAL CONTRACT TIME TIME EXPENDED TO DATE TIME REMAINING March 1, 2008 TO March 31, 2008 PREVIOUS THIS MONTH TO DATE $ 6,771,726.60 I $ 751,472.50 I $ 7,523,199.10 $ - I $ 150,000.00 I~ $ 150,000.00 $ 6,771,726.60 I $ 901,472.50 I $ 7,673,199.10 $ 767,319.91 $ 6,905,879.19 $ 6,094,553.94 $ 811,325.25 kDme D /4Y5 60 CALENDAR DAYS 547 CALENDAR DAYS 288 CALENDAR DAYS 259 CALENDAR DAYS REQUESTED BY: DATE: ~®/e Brent Br, *er, Controller, SSC Cdnstruction Inc. APPROVED BY: pRicDATE: ~ hard Bentwood, roject Manager, Parsons APPROVED BY: ~✓Vtan;-r, DATE: nn eth RVecchYLWD ITEM NO. 5 AGENDA REPORT APPROVED BY THE BOARD OF DIRECTORS Board Meeting Date: April 24, 2008 OF THEYORBAUNDAWATER OISTRICT To: Board of Directors APR 2 4 2 r From: Michael A. Payne, General Manager BY_ _ Staff Contact: Ken Vecchiarelli, Assistant General Manager Hank Samaripa, Project Engineer Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: $ 8.OM Funding Source: Multiple Funds CEQA Account No: 101-2700 Job No: 200313 Compliance: Mitigated Neg. Dec. Estimated Costs: $ 77M Dept: Eng Subject: Construction of the New District Administration Building SUMMARY: On January 25, 2007, the Board of Directors authorized the award of a construction contract for the District's new administration building to J.E. Grant General Contractors (Grant) of Carlsbad. A Notice to Proceed was issue effective March 19, 2007. The location for the new building was chosen to take advantage of property currently owned by the District and to facilitate a centralized approach to District operations in placing all departments on the same campus. The District also hired a construction management firm C3 to observe construction activities and coordinate inspection efforts along with the District's architect Gillis and Associates. The new Administration Building is now completed and occupied as of April 11, 2008, and J.E. Grant General Contractors is continuing to work on punch list activities identified by the Gillis & Panichapan Architects. DISCUSSION: In accordance with the construction contract for the New Administration Building, J.E. Grant General Contractors submitted requests for contract revisions assembled into Change Order No. 12 in the net amount of $104,891.45 with no time extensions. Change Order No. 12 is the final change order for the construction project and includes negotiations for all outstanding and disputed items as well as requests by the District for final touches and last minute items required to complete the project. With consideration and approval of this final change order, the total changes for the construction contract with Grant can be summarized as follows: Owner requested changes, revisions and upgrades: $309,600 (64% of total changes) a. Additions to the scope of work for new SCADA control room b. Server room upgrades and improvements c. Data and electrical connections to boardroom dais and workspaces d. Custom staining to lobby wood trim e. Electrical outlets for WiFi equipment f. Landscaping and site fencing improvements 2. Utility trenching, conduits, paving and AEM improvements: $135,042 (28% of total) a. Various architectural, electrical and mechanical improvements for enhanced operation of the facility such as: monitoring A/C units for the server room; drain lines for the chemical treatment of the chiller units; final electrical connections for the server room cabinets; emergency power connection for the new west gate; final electrical connections for the Knoll furniture systems; and a concrete pad around the flag pole b. Additional trenching and asphalt patching for Edison and AT&T utility trench 3. Resolution of disputes and clarifications: $39,135 (8% of total) a. Various electrical, mechanical, plumbing and drywall additions for detailed work that subcontractors submitted change order requests for and the District negotiated settlement costs In summary, change orders totaled $483,777 or 7.5% of the initial $6,445,828 contract with J.E. Grant General Contractors with over $309,600 (or 64%) of these change order items representing improvements requested directly by the District. In accordance with the construction documents for the new administration building, J.E. Grant General Contractors also submitted a request for Final Progress Payment No. 13 in the net amount of $554,768.63 for the period ending March 31, 2008. During this period, Grant completed 100% of all site fencing and gates, landscaping, custom boardroom cabinetry, carpet tile, HVAC, and all change order work both disputed and previously approved. The status of the construction contract with Grant General Contractors is as follows: • The current contract is $6,824,714.51 and 375 calendar days starting March 19, 2007. • If approved, Change Order No. 12 increases the contract by $104,891.45 to $6,929,605.96 (an increase of 1.5%) and the project duration remains at 375 calendar days. • If approved Progress Payment No. 13 is $616,409.59 (9.0% of the total contract amount), less 10% retention of $61,640.96 for a net payment of $554,768.63. • Total payments to date including retention are $6,929,605.96 (100.0% of the total contract amount). • As of March 31, 2008, 375 calendar days were used (100.0% of the contract duration). Staff and the District's architect, reviewed the contractor's progress payment request and recommend approval. A copy of Progress Payment No. 13 is attached for your reference. The Board of Directors approved the sale of $10.2M in revenue bonds for two key projects in 2003, of which $3.2M was allocated for the Administration Building and $7.OM was allocated for the Highland Reservoir Replacement. With approval of the construction budget on January 25, 2007, the Board authorized a transfer from the annexation fund for up to $5M to fund the balance of the New Administration Building project. PRIOR RELEVANT BOARD ACTION(S): On January 25, 2007, the Board of Directors authorized the award of a construction contract to J.E. Grant General Contractors for the construction of the District's new administration building at the Richfield site. The Board has approved twelve progress payments to date, the latest of which was approved on March 13, 2008. The Board approved Change Order No. 11 on March 27, 2008. STAFF RECOMMENDATION: Approve Change Order No. 12 in the amount of $104,891.45 and Final Progress Payment No. 13 in the net amount of $554,768.63 to J.E. Grant General Contractors; authorize staff to file the Notice of Completion and release the retention thirty five days following the recordation of the Notice of Completion, if no liens have been filed; release the Labor and Material Bond and release the Faithful Performance Bond in one year, if no defects have been found for the New Administration Building Project, Job No. 200313. COMMITTEE RECOMMENDATION: The Building Ad Hoc Committee did not have an opportunity to meet and discuss this matter before if was brought to the full Board of Directors for consideration. YORBA LINDA WATER DISTRICT CONTRACT New Administration Building NAME: CONTRACT NO.: J-0313 CONI RACTOR: J.E. Grant General Contractors FINAL CHANGE ORDER NO. 12 Page 1 of -1 - CONTRACT AMT $6,445,828.00 DAYS: 360 PREV. APPRVD. CHANGES $378,886.51 DAYS: 15 THIS CHANGE $104,891.45 DAYS: 0 OWNER. Yorba Linda Water District REVISED CONTRACT AMT $6,929,605.96 DAYS: 375 This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Change Order items for a lump sum price agreed upon between the Contractor and Yorba Linda Water District otherwise referred to as Owner. INCREASE IN INCREASE IN CONTRACT TIME I DESCRIPTION OF CHANGES CONTRACT CONTRACT EXTENSION I AMOUNT AMOUNT (DAYS) iS) HVAC Welded Piping - Grant COR #0031R $7,595.61 Lighting Control - Grant COR #050R2 1 $12,617.40 Dispute Resolution COR 65 - Grant COR #065132 $5,107 77 Electrical T&M - Grant COR #086 $1,85885 Dry Utility Trench Patching - Grant COR #102 $10,552.01 Vertical Folding Wall Pocket - Grant COR #103 $1,077 59 Added Card Reader Doors - Grant COR #104R $1,999.21 Server Room Electrical T&M - Grant COR #105R $9,897.51 Custom Stain Finish -Grant COR #106 $4,279.08 Added Concrete Flatwork - Grant COR #107 $588.38 AC-1 Condensate Drain -Grant COR #108 $2,314.27 HVAC Temperature Sensor -Grant COR#110 $1,500.00 HVAC Pot Feeder Drain - Grant COR #111 $441.05 j HVAC Equipment Crane - Grant COR #112 $646.88 HVAC Exhaust Fan Relocation - Grant COR #113 $2,362.01 HVAC SK-21 Revisions - Grant COR #114 $4,699.45 HVAC Return Air Grilles - Grant COR #117 $1,681.32 HVAC Make-up Water and Gas - Grant COR #119 I $1,852.24 HVAC Linear Diffusers - Grant COR #120R $370.38 HVAC Smoke Duct Detectors - Grant COR #121 R $2,162.81 HVAC Power to EMS - Grant COR #122 $845.81 Flagpole Foundation Relocation - Grant COR #124 $460.00 Monument Sign - Grant COR #125 <$7,583.80> Remove Kirk Key - Grant COR #126R $240.70 Correct Power at Gate - Grant COR #127R $2,914.81 Duct Smoke Detectors Electrical - Grant COR #128 $3,422.94, Morrison Reff 2+2 - Grant COR #129 $605.8% Landscape Field Revisions - Grant COR #130 $1,831 1B. Metal Framing & Drywall Revisions - Grant COR #131 $3,420.06 Relocate Switch & T-Stat - Grant COR #132 j $1,02687 Revise Furniture Whip Connections - Grant COR #133 $4,611 62 Revisions to SCADA Control Room - Grant COR #134 j $18,960.05 Provide Power to Security Controllers - Grant COR #135 $531.59 NET CHANGE IN CONTRACT AMOUNT. ADD $104,891.45 y $1 04 891.45 The amount of the contract will be increased by the sum of and the contract time shall be extended by p calendar days. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change n work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order. The Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly relatec to the approved tame extension, required to complete the Change Order items. This document will become a supplement of the contract and all provisions will apply hereto It is understood that the Change Order shall be effective when approved by the Owner RECOMMENDED: $104,891.45 , /OWNERS REPRESENTATIVE ACCEPTED: ank Samaripa, (Signatur /CONTRACTOR APPROVED: Peter Burrows (Signature) NER APPROVED: Ken Vecchiarelli (Signature) 0 i I I 0 DATE. O DATE DATE ty p YORBA LINDA WATER DISTRICT FINAL PROGRESS PAY REPORT PROJECT Phase III Administration Building PROGRESS PAY REQUEST NO. 13 LOCATION Placentia PROJECT NO_ J-0313 PAGE 1 OF 1 PAGES CONTRACTOR J.E. Grant General Contractors DATE April 11, 2008 ORIGINAL CONTRACT AMOUNT: $ 6,445,828 AUTHORIZED CHANGE ORDERS: $ 483,778 REVISED CONTRACT AMOUNT: $ 6,929,606 PROGRESS PAY ESTIMATE FOR PERIOD March 1, 2008 TO March 31, 2008 PREVIOUS THIS MONTH TO DATE VALUE OF WORK COMPLETED 1$ 5,968,228.20 I $ 477.599.80 $ 6,445,828.00 CHANGE ORDER WORK COMPLETED 1$ 344,968.17 $ I $ 483,777.96 138,809.79 TOTAL VALUE OF WORK COMPLETED 1 $ 6,313,196.37 $ I 616,409.59 1 $ 6,929,605.96 LESS RETENTION 10% $ 692,960.60 LESS OTHER DEDUCTIONS $ AMOUNT DUE THIS ESTIMATE $ 6,236,645.36 LESS AMOUNT PREVIOUSLY PAID $ 5,681,876.73 BALANCE DUE THIS ESTIMATE $ 554,768.63 NOTICE TO PROCEED March 19, 2007 COMPLETION TIME 360 CALENDAR DAYS APPROVED TIME EXTENSIONS 16 CALENDAR DAYS TOTAL CONTRACT TIME 375 CALENDAR DAYS TIME EXPENDED TO DATE 375 CALENDAR DAYS TIME REMAINING 0 CALENDAR DAYS r ~O REQUESTED BY: DATE, I Peter Burrows, E. rant . C NTRACTOR DATE -71 dd APPROVED BY WNER'VEPRESENTATIVE APPROVED BY: DATE D _I// enneth R. Vecc fare li, YL D•O N~ ITEM NO. 6 AGENDA REPORT Board Meeting Date: April 24, 2008 To: Board of Directors From: Michael A. Payne, General Manager Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: APPROVED BY THE BOARD OF OIRECTOi 6 OF THE YORBA LINDA WATER DISTRICT 'j i 9Y N/A Total Budget: N/A All Funds Job No: Dept: Bus Subject: Financial Statements for the first and second quarters of fiscal year 2007-2008 for the periods ending September 30 and December 31, 2007 respectively. SUMMARY: A presentation of the Financial Statements for the first quarter of fiscal year 2007-2008 for the period ending September 30, 2007. DISCUSSION: The Water Operating Fund had a Net Loss for the first quarter of fiscal year 2007-2008 ending September 30, 2007 of $689,169. The key factors are outlined below: Yorba Linda Water District Quarterly Financial Statement Analysis - Water Operating Fund For the Quarter Ending September 30, 2007 September 30, Y-T-D Y-T-D Budget 2007 Budget Budget Description FY 2007/08 Actual Y-T-D Remaining Remaining Total Water Sales $ 17,217,870 $ 5,706,907 $ (11,510,963) -67% Total Variable Water Costs $ 10,520,000 $ 3,577,601 $ 6,942,399 66% Personnel Costs $ 6,992,970 $ 1,268,418 $ 5,724,552 82% Supplies & Services $ 3,740,200 $ 846,830 $ 2,893,370 77% The Water Operating Fund is showing water sales greater than what we had anticipated due to the drier weather conditions this fiscal year and the variable water costs are most likely higher because of the fact that Water Costs go hand-in-hand with Water Sales as well as the possibility of faulty meters due to the aging of the meters. All meters will be eventually replaced with the radio read meters. Personnel costs and supplies & services are lower than anticipated based on the budget at this point in time. Personnel costs are lower due to positions that have been budgeted but not yet been filled. As far as supplies and services, this is a hard area to determine, because it is unknown when supplies will be exhausted and need ordering. The Sewer Operating Fund had a Net Loss for the first quarter of fiscal year 2007-2008 ending September 30, 2007 of $101,637. The key factors are outlined below: Yorba Linda Water District Quarterly Financial Statement Analysis - Sewer Operating Fund For the Quarter Ending September 30, 2007 September, Y-T-D Y-T-D Budget 2007 Budget Budget Description FY 2007/08 Actual Y-T-D Remaining Remaining Sewer Maintenance Charges $ 1,243,700 $ 225,866 $ (1,017,834) -82% Personnel Costs $ 694,130 $ 143,333 $ 550,797 79% Supplies & Services $ 336,600 $ 58,485 $ 278,115 83% The Sewer Operating Fund is pretty much on target for what was budgeted at this point in time without any material variances that need explanation. Financial Statement Overview for the Second Quarter of Fiscal Year 2007/08 Ending December 31, 2007 The Water Operating Fund had a Net Loss for the second quarter of fiscal year 2007-2008 ending December 31, 2007 of $33,781. The key factors are outlined below: Yorba Linda Water District Quarterly Financial Statement Analysis - Water Operating Fund For the Quarter Ending December 31, 2007 December 31, Y-T-D Y-T-D Budget 2007 Budget Budget Description FY 2007/08 Actual Y-T-D Remaining Remaining Total Water Sales $ 17,217,870 $ 11,017,334 $ ( 6,200,536) -36% Total Variable Water Costs $ 10,520,000 $ 5,741,950 $ 4,778,050 45% Personnel Costs $ 6,992,970 $ 2,415,684 $ 4,577,286 65% Supplies & Services $ 3,740,200 $ 1,524,477 $ 2,215,723 59% The Water Operating Fund is showing water sales greater than what was anticipated due to the drier weather conditions this fiscal year and the variable water costs are most likely higher because of the fact that Water Costs go hand-in-hand with Water Sales as well as the possibility of faulty meters due to the aging of the meters. All meters will eventually be replaced with the radio read meters. Personnel costs and supplies & services are lower than anticipated based on the budget at this point in time. Personnel costs are lower due to positions budgeted but not yet filled. As far as supplies and services, this is a hard area to place a pulse on, because it is unknown as to when supplies will be exhausted and need ordering. The Sewer Operating Fund had a Net Loss for the first quarter of fiscal year 2007-2008 ending December 30, 2007 of $97,602. The key factors are outlined below: Yorba Linda Water District Quarterly Financial Statement Analysis - Sewer Operating Fund For the Quarter Ending December 31, 2007 December, Y-T-D Y-T-D Budget 2007 Budget Budget Description FY 2007/08 Actual Y-T-D Remaining Remaining Sewer Maintenance Charges $1,243,700 $ 577,514 $(666,186) -54% Personnel Costs $ 694,130 $ 274,870 $ 419,260 60% Supplies & Services $ 336,600 $ 147,298 $ 189,302 56% The Sewer Operating Fund is on target for what was budgeted at this point in time without any material variances that need explanation. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors reviews each quarter's financial statements. The financial statements for the quarter ending June 30, 2007 were reviewed on August 9, 2007 The Audited Financial Statements were received and filed by the Board on December 13, 2007. STAFF RECOMMENDATION: That the Board of Directors receive and file the financial statements for the first and second quarter of fiscal year 2007-2008 for the periods ending September 30, and December 31, 2007, respectively. -ti'I.LL l'.\PI:'1,\~7,,1:~"II'.N-I, APPROVED BY THE BOARD OFDiRECTOHa Short Duration Fixed Income - Market Review AIfBL",'°jft (First Quarter 2008 ITEM NO. 7 Economic Update proximately 10 months. Until sales and credit conditions begin to improve. Volatility, dislocation, risk aversion and turmoil best describe the behavior of the generally staid bond markets during the first quarter. It is difficult to recall another instance when so many segments of the fixed income markets were essentially dysfunctional. Since the beginning of the year, there has been an ongoing flight to safety as credit and liquidity concerns plague various segments of the market, including monoline bond insurers, auction rate securities, student loans. municipal bonds, corporate securities. commercial mortgage-backed securities and agencies. Capital constraints have never before been this binding. and the combination of poor dealer bids and forced sales have fostered illiquid conditions throughout the fixed income markets. The massive delevcraging trade, triggered by problems in the subprimc mortgage market last summer, has heightened systemic risk and exacerbated a loss of confidence across financial markets. The sudden collapse of Bear Stearns has increased nervousness about how the markets will value the debt and equity of other financial institutions. More negative headlines and negative surprises are likely before this crisis is resolved and the markets start to recover. housing will continue to be a depressant rather than a stimulant to growth. Strong exports and solid corporate balance sheets, however, will likely help offset these contractionary forces in the quarters ahead. Months Supply of Existing Homes months, nsa 14 - 12 Single-Family Condos 10 8 6 4 The dismal economic releases during the quarter suggest that the economy is already in or close to a recession. The economy began slowing during the fourth quarter, growing at a meager 0.6 percent. While first quarter growth may be slightly positive. the negative impact of the housing slump and continued credit crisis will weigh on the economy for the foreseeable future. Perhaps. there will be a temporary boost to GDP growth following the $150 billion in fiscal stimulus, but there is considerable uncertainty as to how much of the tax rebates will be spent, saved or used to pay down debt. Although consumers have remained fairly resilient, over the last three months, consumer spending has fallen for everything except non-discretionary items. Retail sales and durable goods orders declined 0.6 percent and 1.7 percent, respectively, in February. In a report that offers little hope for a near-term rebound in consumer spending. the Conference Board's consumer confidence index plunged to a five-year low of 64.5 in March with (he expectations component reaching, a 35-year low. In addition. payrolls have fallen, adding to consumer pain. As employment growth slows, we expect to see the unemployment rate rise further above 5 percent. The weak dollar and higher commodity prices have put upward pressure on inflation; however, core inflation has remained Fairly stable to date. If a recovery in housing is a precondition for improved GDP growth, first quarter housing data provided very little comfort. Sales of new and existing single family homes remained depressed and starts of single family units fell to the lowest pace since 1991. The growing imbalance between supply and demand has exacerbated the decline in home prices and has increased the monthly supply 2 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Sourcc: National Association of Realtors New Home Sales It Inventory m, saar 1.50- 1.40- sales, ins 1.30 1.20- 1.10. 1.00. 0.90 0.80. 0.70' 0.60- 0.55 0.50 0.45 0.40 0.35 0.30 0.50 • 0.25 Jan-00 May-01 Sep-02 Jan-04 May-05 Sep-06 Jan-08 Source: Census Bureau In response to a deteriorating outlook and heightened liquidity concerns, the Fed has aggressively eased monetary policy since last summer, lowering the Fed funds rate by 300 bps. On January 22, the FOMC made a surprise 75 basis point cut and voted at its regularly scheduled meeting on January 30 to cut the Fed funds rate by an additional 50 basis points. A 125 basis point drop in the Fed funds rate in the space of nine days is a modern day record and marked a milestone in the unfolding credit crunch. As the outlook m, Saar -0.60 %vww wellscap.com WF?LI_S CAPY-rill, %N1A1N;\G1:M1:NT Irv for growth continued to weaken, the Fed lowered the Fed funds rate by an additional 75 bps to 2.25 percent on March 18. While lower interest rates would typically help stimulate the economy by reducing borrowing costs for households and businesses, that process has been thwarted in this cycle by a financial system that has become extremely risk averse. Although Treasury rates have declined approximately 230 bps since the Fed easing began, private sector borrowing costs have barely declined. Recognizing the severity of the liquidity problems in the U.S., the Federal Reserve has moved beyond standard monetary policy instruments. Since late last year, the Fcd has added three new lending facilities to its " toolkit" in an effort to prevent fire sales of mortgage-backed securities (MBS). agencies, corporates and financial stocks. The new lending facilities include the Term Auction Facility ('fAF). the Term Securities Lending Facility (TSLF) and the Primary Dealer Short Duration Fixed Income - Market Review First Quarter 2008 the credit markets have produced positive, albeit limited, results. Agency and mortgage spreads have narrowed and the money supply within the U.S. has increased $330 billion, or 9.6 percent. Money growth will likely continue to increase since there is an inverse relationship between Fed fund rates and the money supply. A significant increase in the money supply may compel the Fed to increase rates quicker than would be typical following a Fed casing cycle, in order to manage inflation risk. To be sure, financial risk will remain elevated as the crisis continues to unwind in the quarters ahead. Agencies Despite the overall weakness in housing, the GSE paper continues to see high demand given its relative strength and safety compared to other credits. Fannie Mae reported full year 2007 earnings in February with a net loss of $2 billion, while Freddie Mac reported a loss of $3 billion. Both Fannie and Credit Facility (PDCF). Taken together, these initiatives are designed to increase Freddie have excess capital above the 30 percent required by OFI IF,O. with dealer ability to finance trading positions in markets other than treasuries and $3.9 billion and $4.5 billion. respectively. The recent decision by 01:1IF.U to alleviate finding strains. In recent weeks, there have been some indications that liquidity in the credit markets is starting to improve. Q1 2008 Bond Market Highlights livery non-Treasury sector suffered during the quarter as spreads for mortgage-backed securities. agencies and corporates widened significantly. Within the auction rate securities ('ARS) market, heightened concern about the creditworthiness of bond insurers and rating agency downgrades caused hundreds of auctions to fail since February 13. The near collapse of the ARS market wrecked havoc within the municipal market, causing a massive repricing and record municipal to Treasury ratios. The dislocations within the municipal market provided opportunities for investors to buy solid credits at historically attractive valuations. The extraordinary performance by Treasuries illustrates the extreme flight to safety that prevailed during most of the quarter. The 1(I-year'freasury fell more than 60 basis points while yields on the three-month T-bills and two- year Treasury notes declined 190 and 145 basis points, respectively. The 1-3 Year Treasury Index returned 3.07 percent for the quarter, outpacing most segments of the fixed income market except for longer dated Treasuries. The yield curve steepened significantly. as it almost always does when the Fed is easing. We anticipate rates increasing over the course of the next 12 months, rising in advance of the Fed's first rate increase. While \vc do not anticipate the second quarter will be as tumultuous as the first, to reduce the capital requirement to 20 percent for the GSEs and the lifting of their portfolio caps will enable Fannie and Freddie to take advantage of growth opportunities as mortgage originators exit this business. The steepened yield curve and continued flight to quality for short-term debt will greatly benefit the GSI:s' business model. Agency debt continues to represent good value. The two-year Agency benchmark ended the quarter with yields in the 2.15 percent range compared to 1.60 percent for Treasuries. The Lehman 1-3 Year Agency Index ended the quarter with a total return of 2.80 percent.. which was in-line with comparable duration Treasuries. Corporate It was another tough quarter for the credit market as systemic risk, additional writedowns and concerns about funding continued to weigh on the sector. causing spreads to widen significantly. March marked the third month in a row of negative excess returns for the Lehman Brothers Credit Index, which has underperformed 427 basis points year-to-date over duration-matched treasuries. Although still under immense stress, the credit markets showed sins of improvement during the last Iew weeks of the quarter. Credit spreads have tightened approximately 25 bps from peak levels reached on March 17. Credit selection will be crucial in the quarters ahead as more negative headlines will likely surface. especially if the economy remains weak. The worst performing sectors during the quarter included brokers (e.g. Goldman Sachs. Lehman Brothers, Morgan Stanley) and consumer finance companies (e.g. CIT, General Electric Capital Corp.). As a result of dire liquidity conditions, many of the problems and issues that have impaired the financial system still financial spreads reached levels not seen in the last 20 years. need to be resolved. The Fed's quick actions to mitigate further deterioration in www,wellscap com WELLS L„\FI'I \I: ~I.\i~i\C;I:Cl1f,i\'"I Orr Financial Institutions OAS 400 350 300 250 200 150~✓ 100 0 1996 1998 2000 2002 2004 2006 2008 -Investment Grade: Banking - OAS - Investment Grade: Brokerage - OAS Investment Grade: Finance Companies - OAS Source: I .chman t. i vc Although banks and brokers will continue to face pressure from additional writedowns and assets cominu onto balance sheets. there arc a number of temporary lending facilities now in place to help alleviate further deterioration within the industry. Depository institutions can access the Term Auction Facility (TAF) in addition to the discount window for funding. The TAF, a biweekly competitive auction. enables participants to borrow money from the Fed using a broader range of collateral (i.e. corporate debt, MIS, CMOs, etc.) than typically available with open market operations. Primary dealers also have increased access to funding from the Fed through the Term Securities Lending Facility (TSLF), the Primary Dealer Credit Facility (PDCF) and Term Repurchase Transactions. These programs enable primary dealers to borrow cash at a lower cost and with greater, ease since they can use some of their securities as non-traditional collateral for the loans. With the increased lending facilities provided by the Fed, diversified money center banks and brokers will likely represent attractive relative value opportunities although credit selection %aill be crucial in the quarters ahead as more negative headlines may surface. ABS Ft MBS This first quarter was higghlighted by a remarkable number of policy responses to the housing and economic crises. While credit and liquidity were the primary reasons for the Fed and other government agencies actions, asset- and mortgage-backed securities should be a long-term beneficiarv of this intervention. In the short-term. however. home-equity A13S and M13S continue to be severely challenged by liquidity and wide spread aversion to mortgages. specifically subprime holdings. This past quarter reflected a continuation of forced sales and the liquidation of mortgage-related assets due to deteriorating collateral, rising delinquencies and increasing margin calls. The sell-off continues to pressure pricing and returns in these sectors. Short Duration Fixed Income - Market Review First Quarter 2008 Despite the lack of buyers and pricing pressure, private label home-equity A13S and N113S holdings in our portfolios continue to perform well and pay-down, albeit at a slower rate. Although slower pay-downs have extended duration slightly. the collateral seatritiring the A13S and M13S holdings in our client portfolios have not incurred significant delinquencies or losses. While these securities are severely impaired due to liquidity, the credit structure is sound and we continue to recommend against any distressed liquidation. Reflective of the volatility in asset-backed and mortgage sectors, spreads to Treasuries continued to widen during the quarter with home equity A13S spreads peaking at the end of February. Spreads on auto and credit card ABS fared slightly better, but also widened during the quarter despite consumer ABS collateral continuing to perform. Deterioration in consumer credit, a decline in household wealth and growing unemployment claims contributed to the underperfonnance of'ABS for the quarter. The Lehman 1-3 Year A13S Index returned 0.49 percent fur the quarter, which represented 2.45 percent underperformance relative to comparable duration Treasuries. The home equity A13S was by far the worst performing component with a -7.38 percent total return for the quarter compared to 1.43 percent for- AAA-rated auto and credit cards. ABS Spreads 700 600 500 rn 400 O 300' zoo 100, v o Jul-06 Jan-07 Jul-07 Jan-08 ABS Credit Card AAA ABS Auto AAA ABS Home Equity AAA Sour ce: LehmanLive While private-label CMOs struggled with liquidity and decreased bid activity, agency mortgage-backed pass-throughs, with their high quality portfolios, performed extremely well amid economic uncertainty, posting a quarterly return of 2.43 percent. Serious delinquencies for Fannie's and Freddie's portfolios were 1.1 percent and 0.7 percent, respectively. at the end of January 2008. Liquidity in agency CMOs has been superior to other non- Treasury asset classes. w ww.wel l scap. ann Reporting Period. Annualized Month-to- Quarter to Return Since Date Date YTD Inception* Yorba Linda Water District 0.23'% 0.93% 0.93% 4.77% olio Investment Portfolio Lipper Institutional Money o 0.28 o 0.97 /0 0.97 /0 o 4.93 /o Market Fund Index 6.00% 5.00% ■YLWD ® Lipper Inst. MM Fund Index 4.00% 3.00% - 2.00% ~ 1.00% I 0.00% f Month-to-Date f N: Quarter to Date YTD 4 i Annualized Since Inception * - Inception date for purposes of performance calculation: 1111105 Returns are net of Wells Capital Management fees. PROVED BY THE BOFRD Of U,RECT06 OF THE YORBA LINDA WATER DISTRICT 4PR s 41?0Gc 19~. ITEM NO. 119, MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE April 8, 2008 A meeting of the Yorba Linda Water District Finance-Accounting Committee was called to order by Committee Chairman Mike Beverage at 4:05 p.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT: Director Michael J. Beverage, Chair Director John W. Summerfield Alternate: Director William R Mills STAFF PRESENT: Michael Payne, General Manager Ken Vecchiarelli, Assistant Gen. Manager Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant ACTION ITEMS: 1. Consider the quarterly Financial Statements for the first and second quarters of FY 2007/2008. Finance Director Cyganik presented the Quarterly Financial Statements for the first and second quarters of fiscal year 2007/2008 ending September 30 and December 31, 2007. The Committee asked a few questions which were all answered. The Committee will recommend that the financial statements for the quarters ending September 30 and December 31, 2007 be received and filed by the Board of Directors. 2. Consider the monthly Financial Statements for the seventh and eighth months ending January 31 and February 29, 2008, respectively. The monthly statements were reviewed and the Committee accepted them as presented. DISCUSSION ITEMS: 3. Review of the Investment Report ending February 29, 2008. The Investment Report for month ending February 29, 2008 was discussed and accepted as presented. 4. Status report on Wells Capital portfolio investments as of March 31, 2008. The committee asked Keith Khorey for an update on the status of the District's investments. Mr. Khorey said the overall bond market is firmer than it was since the Bears Sterns issue. In general, the financial markets have increased since last month and all of the remaining Short-Term Corporate Securities are rated at A or AA. It was noted that there are three options: (1) sell everything with a small loss; (2) sell the investments at the coupon reset date and put the proceeds in a money market fund; or (3) sit tight and see which direction the market takes. Mr. Khorey recommended, based on our current investment policy, sitting tight. However, if the committee chose to reconsider the District's investment policy, he might have a different recommendation. The decision was made to let Wells Capital do what we pay them to do, based on our current investment policy and objectives. -1- 5. Reporting of Significant Event in Connection with the Continuing Disclosure Obligations on the 2003 Certificates of Participation. A conference call and memo from Fieldman Rolapp & Associates noted that the credit rating of the FGIC Insurance Company has been downgraded, and that the rating downgrades are not a reflection of the District's ability to pay principal and interest on the 2003 Certificates. The reason for the reporting disclosure was to do our due diligence in filing A Significant Event Notification with the Nationally Recognized Exchange Commission pursuant to compliance with the Security Exchange Commission (SEC) Rule 15c2-12, Section 5(C). ADJOURNMENT: The Committee adjourned at approximately 5:05.m. The next Finance-Accounting Committee meeting is scheduled for May 13th at 4:00 p.m. at the District's Administration building, 1717 E Miraloma Avenue, Placentia, CA. -2- APPROVED BY THE BOARD OF OIRECTO`6 OF THE YORBA LINCA WATER DISTRICT ,\PR 1~~ ITEM NO. /06. / MINUTES OF THE YORBA LINDA WATER DISTRICT PUBL FORMATION - TECHNOLOGY COMMITTEE MEETING April 11, 2008 A meeting of the Yorba Linda Water District Public Information-Technology Committee was called to order by Committee Chair Ric Collett at 8:30 a.m. The meeting was held in the EOC. Room, 913 S. Richfield Rd., Placentia. COMMITTEE MEMBERS PRESENT: Director Ric Collett, Chair Director Michael J. Beverage STAFF PRESENT: Michael A. Payne, General Manager Cindy Mejia, Assist. Administrator INTRODUCTION OF VISITORS AND PUBLIC COMMENTS: Nancy Jamar, Alain Jamar Design ACTION ITEMS: 1. None DISCUSSION ITEMS: 2. Status report on District Information activities. Cindy Mejia presented a list of activities she attended for the month of March, an update on the Consumer Confidence Report, a briefing on World Water Day 2008, and the latest SmarTimer information. It was decided that the approval of the District Video script would need to wait until the full video is shown to the committee. 3. District Re-branding. Mike Payne requested Stacey Bavol be invited to the next Committee meeting to ensure all stationary would be practical to Customer Service's needs. He also stated he would like to have a message stable developed that could be used on "bumper sticker-type" signs on the back of all District vehicles for changeable messaging and to reflect a current public information campaign. Director Collett requested a second page to the current draft letterhead. Director Beverage suggested the lettering of the logo match that of the YLWD name. Nancy Jamar stated that for the next meeting, she would bring different typology for the logo and different shading to ensure that the logo "popped", but did not overpower the name of the District. Director Collett also suggested the District use only environmentally- friendly paper for our printing. ADJOURNMENT: The meeting adjourned at 9:50 am. The next meeting of the Public Information- Technology Committee is scheduled for April 17, 2008. ITEM NO. 10-e,2 MINUTES OF THE YORBA LINDA WATER DISTRICT PUBLIC INFORMATION - TECHNOLOGY COMMITTEE MEETING April 17, 2008 A meeting of the Yorba Linda Water District Public Information-Technology Committee was called to order by Committee Chair Ric Collett at 8:40 a.m. The meeting was held in the Closed Session Room of the Administration Building, 1717 E. Miraloma, Placentia. COMMITTEE MEMBERS PRESENT: Director Ric Collett, Chair Director Michael J. Beverage STAFF PRESENT: Michael A. Payne, General Manager Cindy Mejia, Assist. Administrator Stacey Bavol, Customer Service Sup. INTRODUCTION OF VISITORS AND PUBLIC COMMENTS; Nancy Jamar, Alain Jamar Design ACTION ITEMS: 1. None DISCUSSION ITEMS: 2. District Re-branding. Director Collett reiterated that the Committee would like one tagline/slogan to reflect the District on the concrete sign and the stationary, with four to five different messages on the trucks. He also requested the logo be darkened for better visibility. Director Beverage suggested the logo not be contained in a box, as is sometimes currently used, and that the shadow of the logo leans toward the name, rather than away. Nancy Jamar stated that for the next meeting, she would bring the requested changes and samples of environmentally friendly paper. ADJOURNMENT: The meeting adjourned at 9:20 am. The next meeting of the Public Information- Technology Committee is scheduled for April 25, 2008 at 8:30 a.m.