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2008-11-12 - Board of Directors Meeting Agenda Packet
Agenda Packet Regular Meeting of the Board of Directors November 12, 2008 8:30 a. m. 1717 E. Miraloma Avenue, Placentia, CA 92870 Yorba Linda Water District OR G ~A_ Yorba Linda Water District AGENDA BOARD OF DIRECTORS REGULAR MEETING Wednesday, November 12, 2008, 8:30 A.M. 1717 E. Miraloma Avenue, 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 None. 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. Wells Capital Investment Portfolio and Economic Outlook for Quarter Ended Sept 30, 2008 Recommendation: This is for information only. No action is required. CONSENT CALENDAR 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. 2. Minutes of the Regular Board of Directors Meeting Held October 23, 2008 Recommendation: Approve the minutes as presented. 3. Minutes of the Board of Directors Workshop Meeting Held October 30, 2008 Recommendation: Approve the minutes as presented. 4. Payment of Bills, Refunds, and Wire Transfers Recommendation: Ratify and authorize disbursements in the amount of $1,836,208.77 and ratify payment of check number 50186 in the amount of $499.36 to Placentia Disposal for September services. 5. Progress Payment No. 6 for the Highland Reservoir Replacement Project Recommendation: Approve Progress Payment No. 6 in the net amount of $708,261.99 to Schuler Engineering Corporation and 10% retention of $78,695.78 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. 6. Progress Payment No. 18 for the Lakeview Reservoir Construction Recommendation: Approve Progress Payment No. 18 in the net amount of $94,848.00 to SSC Construction, Inc. and 5% retention of $4,992.00 deposited to City National Bank escrow account for construction of the Lakeview Reservoir Project, Job No. 200704. 7. Terms and Conditions for Water and Sewer Service with Habitat for Humanity of Orange County Recommendation: Approve the Terms and Conditions for Water and Sewer Service with Habitat for Humanity of Orange County, Job No. 200818. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 8. Consider Terminating the Professional Services Agreement with Sacramento Advocates, Inc. Recommendation: Authorize the General Manager to terminate the Professional Services Agreement with Sacramento Advocates, Inc. effective November 30, 2008. DISCUSSION ITEMS CONTINUED 9. Budget Based Rates in Orange County for Water Management and Droughts Recommendation: This is for information only. No action is required. 2 REPORTS. INFORMATION ITEMS AND COMMENTS 10. a. President's Report b. Directors' Reports C. General Manager's Report 1. Status of Urban Water Management Plan Update 2. Review of "Water Lines" Fall Newsletter 3. Joint Public Use of Administration Building d. General Counsel's Report 1. Review of General Counsel's Final Report on 2008 Legislative Bills COMMITTEE REPORTS 11. a. Executive-Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett 1. Meeting scheduled for November 18, 4:00 p.m. b. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills 1. Minutes of meeting held November 10 (to be presented at the meeting). 2. Meeting scheduled for December 9, 4:00 p.m. C. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summerfield 1. Minutes of meeting held November 10 (to be presented at the meeting). 2. Meeting scheduled for December 8, 4:00 p.m. d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1. Minutes of meeting held November 6. 2. Meeting scheduled for December 4, 4:00 p.m. e. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong 1. Meeting scheduled for November 4 was cancelled. 2. Meeting scheduled for December 2, 4:00 p.m. 3 MWDOC Ad Hoc Committee (Mills/Collett) Alternate: Summerfield 1. Minutes of meeting held October 28. 2. Meeting scheduled for December 23, 4:00 p.m. g. City of Placentia Ad Hoc Committee (Beverage/Payne) 1. Minutes of meeting held meeting). 2. Meeting to be scheduled. November 7 (to be presented at the INTERGOVERNMENTAL MEETINGS 12. a. MWDOC/MWD Workshop, November 5 (Staff) b. OCWD Board, November 5 (Staff) C. Yorba Linda City Council, November 4 (Mills) BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after November 12, 2008. Agenda is available in the District office prior to meeting. November 2008 Yorba Linda Planning Commission, Nov 12, 7:00 p.m. Executive-Admin-Organizational Committee, Nov 18, 4:00 p.m Yorba Linda City Council, Nov 18, 6:30 p.m. MWDOC Board, Nov 19, 8:30 a.m. OCWD Board, Nov 19, 5:00 p.m. District Board Meeting, Nov 26, 8:30 a.m. Yorba Linda Planning Commission, Nov 26, 7:00 p.m. Holiday, Nov 27-28 December 2008 Public Information-Technology Committee, Dec 2, 4:00 p.m. Yorba Linda City Council, Dec 2, 6:30 p.m. MWDOC/MWD Workshop, Dec 3, 7:30 a.m. OCWD Board, Dec 3, 5:00 p.m. Planning-Engineering-Operations Committee, Dec 4, 4:00 p.m. Personnel-Risk Management Committee, Dec 8, 4:00 p.m. Finance-Accounting Committee, Dec 9, 4:00 p.m. Yorba Linda Planninq Commission, Dec 10, 7:00 p.m. District Board Meeting, Dec 11, 8:30 a.m. Executive-Admin-Organizational Committee, Dec 16, 4:00 p.m. Yorba Linda City Council, Dec 16, 6:30 p.m. MWDOC Board, Dec 17,8:30 a.m. OCWD Board, Dec 17, 5:00 p.m. District Board Meetinq, Dec 23, 8:30 a.m. Yorba Linda Planning Commission, Dec 24, 7:00 p.m. MWDOC Ad Hoc Committee Meeting, Dec 23, 4:00 p.m. *May be cancelled due to the upcoming holidays. Collett Summerfield/Mills Armstrong Staff Staff Summerfield District Offices Closed Collett/Beverage Mills Staff Staff Mills/Armstrong Armstrong/Collett Beverage/Summerfield Collett Summerfield/Mills Armstrong Staff Staff Summerfield CANCELLED 4 CONFERENCES AND SEMINARS 13. 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. ACWA/JPIA Annual Conference - December 1-2, 2008 b. Orange County Water Association 51st Anniversary Celebration - December 12, 2008 C. Water Education Foundation Climate Change Summit - November 13-14, 2008 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. 14. Conference with Real Property Negotiators Pursuant to Section 54956.8 of the California Government Code Property: 4622 Plumosa Drive, Yorba Linda, CA Agency Negotiators: Michael A. Payne and Ken Vecchiarelli Negotiating Parties: To Be Determined Under Negotiation: Price and Terms of Payment 15. Public Employee Appointment Pursuant to Section 54957 of the California Government Code Title: General Manager ADJOURNMENT A regular meeting of the Board of Directors is scheduled for November 26, 2008, at 8:30 a.m., at 1717 E. Miraloma Avenue, Placentia 92870. Items Distributed to the Board Less Than 72 Hours Prior to the Meetinq Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at hftp://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 Michael A. Payne, General Manager, 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 S M 6 7 13 14 20 21 27 28 JUL T W T 1 2 3 8 9 15 16 17 22 23M 29 30 31 F S 4f 5 11 12 18 19 25 26 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 23 24 25 26 27 28 29 _ 30 31 S M 3 4 10 11 17 18 24 25 311 S M 2 3 9 101 16 17 23 24 301 AUG T W T 5 6 7 12 13M 19 20 21 26 27M NOV T W T 4 5 6 110 13 18 19 20 25 0 271 F S 1 2 8 9 15 16 22 23 29 30 F S 1 7 8 14 15 21 22 281 29 SFM~ 'I 7 8 14 15 21 22 28 29 SEP T 2 9 16 23 30 W T 3 4 10M 17 18 24M F S 5 6 12 13 19 20 26 27 DEC S M T W T F S 1 2 3 4 5 6 7 8 9 10M 12 13 14 15 16 17 18 19 20 21 22M 241 251 261 27 28 29 30 31 2009 BOARD OF DIRECTORS CALENDAR S M 4 5 11 12 18 19 25 26 S M 5 6 12 13 19 20 26 27 JAN T 6 13 20 27 T 14 21 28 W T F S 1 2 3 7 9 10 14 15 16 17 21 - 23 24 28 29 30 31 APR W T 1 2 8- 15 16 22M 29 30 F S 3 4 10 11 17 18 24 25 FEB S M T W T F S 1 2 3 4 5 6 7 8 9 10 11M 13 14 151 161 17 18 10 20 21 22 23 24 25 26 27 28 MAY S M 3 4 10 11 17 18 24 251 31 T 12 19 26 W T 6 7 13M 20 21 270 F S 1 2 8 9 15 16 22 23 29 30 MAR S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 - 13 14 15 16 17 18 19 20 21 22 23 24 25M 27 28 29 30 31 S M 1 7 8 14 15 21 22 28 29 T 2 9 16 23 301 W Holiday Dec 2-5, 2008 - ACWA Fall Conference, Long Beach Board Meeting Dec 15-17, 2008 - CRWUA 2008 Annual Conference, LV Activities May 19-22, 2009 - ACWA Spring Conference, Sacramento JUN W T 3 4 10M 17 18 24M F 5 6 12 13 19 20 26 27 Rev. 11/07/08 ITEM NO. \VriI i,s (',vri- i, N4ANAG1:MFNT Central Bank fud expano reciprocal swap lines w/ECN and SNB BoC, BoE, ECB inject liquidity BoC & BoE cut policy rates Central banks inject $2508 of liquidity Markets have been extremely volatile and continue to evoke at an accelerated pace. The events that transpired during the third quarter and rolled into October have been unprecedented and historical by virtually every measure. There is no denying that the ongoing credit market crisis. now well over 12 months old, was thrust into a new phase of severity with the collapse of Lehman Brothers and the subsequent developments with some of the largest money market finds. By most any measure. aversion to risk reached historic highs in early October. The frequently referenced] ED spread (spread between three-month T-bill rate and three-month Libor) reached an all time high of 445 basis points on October 10, blowing through previous cycle highs. In the meantime, enormous policy response has been applied in an eflbrt to keep the money markets functioning and restore a degree of confidence to the credit market (see table below). TED Spread Has Reached Historical High aco All time high of 445 on October 10th ono 1s-11-20011 W co 2-c 2002 200A 2006 21,16 Source I clunan Brothers Live Policy Action in the Past 12 Months Fed Funds cut Discount rate cut -75 bps -375 bps more than Fed Funds TAF created & expanded Fed initiated $100B in repo w/primary dealers TSLF created & expanded Fed extends credit to primary dealers including investment banks Fed lengthens max maturity for primary credit loans Fed expands collateral eligible at PDCF Fed temporarily permits banks to provide liquidity to affiliates Fed allows banks to buy ABCP from affiliated money funds Short Duration Fixed Income - Market Review Yorba Linda Water District - 4Q 2008 Third Quarter 2008 Pervasive market uncertainty and a widespread absence of market confidence intensified the flight to quality which began last August. Persistently below 1 percent. yields on short-term Treasury bills have occasionally turned negative, suggesting investors have been willing to pay an insurance premium of sorts to take cover under the satety of the U.S. Treasury. As the market came to ternis with the reality of the financial market crisis and the risks to the broader economy, the two-vear Treasury yield dropped significantly in anticipation of further Fed late cuts. The two-year yield dropped 125 basis points to 1.65 percent by the end of the quarter. while the Fed delivered an additional 50 basis point cut to the target rate in a synchronized global central bank case on October 8. Massive flows of global funds into short-term 'freasuries, coupled with investor perceptions that larger Federal deficits will eventually contribute to higher rates, resulted in a measurable steepening of the yield curve. The spread between the two- and ten- yearTreasury• yields widened significantly during the quarter, reaching a nearly five-year high ol'2.38 percentage points on October 10. Outside of Treasuries, short-term agencies offered the only sate haven sanctuary for risk-averse investors in the taxable market. On September 7, Fannic Mae"s and Freddie Mac's regulator placed both firms in conservatorship in which semi-public ownership is maintained under government management, effectively assuring fulfillment oftheir mandate to maintain an adequate flow of finance to the mortgage market. The conservatorship plan includes more explicit government backing of these Raise conforming mortgage loan limit States provide mortgage aid FHA starts to lend to subprime FHLB increase lending OFHEO eases FNM, FRE capital requirements Housing & Economic Recovery Act of 2008 provides $300B aid to insure mortgages Housing & Economic Recovery Act of 2008 provides backstop for FNM, FRE Treasury puts FNM, FRE into conservatorship power ~e mortgage rates) Aa_~0,1 Source. ISI Group VUU6 G L hUIV 1~Ib1S10 H31VM VONII V81:10A 3N1 10 S.0©193810 30 0t1V0@ 3H1 AS 03AOdtidr Other Fed intervenes on Beal Seams Department of Education provides student loans Fed/Treasury intervene on AIG Fed/Treasury seek "RTC-like" corporation SEC restricts short-selling Bank regulators ease capital require- ments for mergers Treasury insures publicly held money market mutual funds for one year U.S. Treasury to buy "troubled assets" ($7008) TARP, $250B of $700B devoted to recapitalizing banks TAF now $900B; new CP facility, pos- sible guarantees FDIC guarantee for new deposits for banks and thrifts for 3 years MMF plan, deposit insurance raised to $250k www.wellscap.com \ VI.I_I -S CAPITAL MANAGE M-ENT Short Duration Fixed Income - Market Review Yorba Linda Water District - 4Q 2008 Third Quarter 2008 agencies' debt through 2009, among other provisions. The plan leaves resolution of their ultimate structure-government or privately-owned-to the next president and Congress. With the provisions of the conservatorship plan and agency yields remaining attractive relative to Treasuries, we have advocated agency debt as part of our current strategy. Municipal bonds remained a very attractive asset class for tax-advantaged clients, with a significant amount of cross-over investing activity from taxable investors given strong credit fundamentals and better liquidity. A weaker economy and persistent weakness in the housing market is likely to further pressure municipal budgets across the country as state income tax, sales tax. corporate tax and property tax receipts are expected to slow further. Although balanced budget requirements and taxing authorities have historically contributed to extremely low default rates in the municipal sector, we remain as vigilant as ever with our municipal security selection. We continue to emphasize pre-refunded municipal bonds that have been escrowed to maturity with Treasury bonds/notes, as well as municipal variable rate demand notes with a standard purchase agreement or letter of credit issued to support the liquidity. Source: Bloomberg Given the absence of significant investor demand for anything outside of Treasuries and hedge fund selling pressure, municipal yields have increased notably over the past few months as illustrated in the chart above. Higher rates have made it challenging for some issuers to place debt at workable levels. As of this writing, the State of California is actively marketing $4 billion revenue anticipation notes at yield levels that are likely to exceed 4 percent. In September. Moody's announced plans to migrate its municipal ratings to its global rating scale. The purpose of the move is to improve the comparability of credit quality across the entire credit market rather than bifurcate its rating scale into taxable standards and municipal standards. In many cases. the migration to Moody's global rating scale will result in a one- or two-notch upgrade of a municipal issuer. Economic Update Although the U.S. economy proved to be quite resilient during the first half of the year, the escalation of liquidity strains and the deepening turmoil in the credit markets have negatively impacted key variables that drive real economic activity, and will continue to constrain growth for the foreseeable future. The sources of strength, predominately consumer spending and trade. have weakened substantially. As a result, second quarter GDP growth was revised down to 2.8 percent from 3.3 percent and the early estimates for third quarter GDP growth are negative. Retailers are in for a rough ride in the quarters ahead as tear and uncertainty continue to depress consumer confidence and spending. Although consumer spending appears likely to slow further, we anticipate purchasing power will improve with moderating inflation, which could partially offset other sources of weakness. Adding to consumer angst is the rising unemployment rate. The unemployment rate in August surged to a five-year high of 6.1 percent and will likely rise even higher, possibly well above the 6.3 percent peak reached after the 2001 recession. The rising unemployment rate will further depress consumer spending and impose additional downward pressure on home prices as a result of increased foreclosures. However. the jump in unemployment may not be as significant as in past recessions given companies' cautious hiring plans following the last economic slowdown. Productivity growth has remained strong which may limit the increase in the unemployment rate. A Remarkable Recovery of Productivity Growth Year-Ago % Change; Non-Farm Sector ,.S - se - \ 23 1s - u \ as - L+ u W92 u as s- - se D.-W sgym J.." X-06 D-06 s.po7 J-N Source: U.S. Department of Labor www.wel Iscap.com WFILS CAPITAL MANAGEMENT FV// Short Duration Fixed Income - Market Review Yorba Linda Water District - 4Q 2008 Third Quarter zoos The recent historic action taken by the U.S. government to essentially nationalize Fannie Mae and Freddie Mac represents the largest step taken to-date to help the ailing housing market. Fhe measure. which has placed the entities into conservatorship. should help case borrowing conditions and lower mortgage rates as the Treasury purchases mortgage-backed securities while Fannie and Freddie work to drastically shrink their portfolios over the next several )cars. Despite these recent of arts, housing starts hit a new low during the third quarter and existing ]ionic prices. as measured by the Case-Shiller Price Index, are now down over 19 percent from the 2006 peak signaling the housing recession has )et to bottom. Home Prices Continue to Decline Source. Bloomberg Although inflation developed into a market concern earlier this summer, the unprecedented events in the credit markets and the outlook for a persistently weak economy have kept core CPI relatively stable at 2.5 percent year- over-year. In the absence of increasing wage pressures. we anticipate lower commodity prices and a stronger dollar should also help keep inflation relatively tame and further reduce inflation expectations. While still outside of the Fed's comfort zone, both headline CPI and core CPI will likely fall significantly in the coming quarters. Fhe Fed is prop iding a record volume of funds to the global money markets. On October S, a 50 bps cut in the Fed funds rate to 1.5 percent was coordinated with half a percentage point cut across foreign central banks (i.e., BOE. EC'B, Bank of Canada. Riksbank and the Swiss National Bank). The reduction of interest rates across the globe further illustrates the immense challenges facing officials to restore stability to the market. Given the amount of monetary policy that has been enacted since last fall, the Fed is in a very good position today to further address this most recent intensification of financial market issues. Although central banks have been injecting liquidity into the global financial system, funding costs have increased sharply. Rates being paid on Eurodollar deposits are more than 300 bps above Treasury bill rates and more than 100 bps above the Fed funds rate. These exceptionally wide spreads suggest the Fed will need to continue its lending programs for the foreseeable future. This provision of liquidity should not be inflationary since the central banks are only replacing funds that have been withdrawn from the markets by private sector institutions. The Fixed Income Portfolio Managers have written this commentary for informational purposes only and is not intended as an of ter to sell or a solicitation of an offer to buy any security. The views expressed on the financial markets and security valuations are based on the judgment and experience of the Fixed Income Investment team. Past performance is not a guarantee of future returns. It should not be assumed that the portfolio holdings discussed or investments made in the future will he profitable or" i I I equal the performance of those discussed in this commentary. A complete list of holdings and portfolio commentaries are available for the past year upon request. This commentary is for the sole use of the intended recipient l sl and may contain prit ileged information . Any unauthor- ized review, use, disclosure or distribution is prohibited. www.wellscap.com Yorba Linda Water District Account 418611500 Performance Summarv Report Month-to- Date Yorba Linda Water District Investment Portfolio 0.10% Lipper Institutional Money o 0.21 /o Market Fund Index 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Rep, Quarter to Date 0.63% 0.64% * -Inception date for purposes of performance calculation: 1111105 Returns are net of Wells Capital Manai;ement,fees. rtin,g Period. Annualized Return Since YTD Inception* 2.18% 4.37% 2.30% 4.53% Month-to-Date Quarter to Date YTD Annualized Since Inception ,-tZ 61 rut"- *PPReW-t" THE BOARD OF DIRECTORS OFTHEYORBA LINDA WATER DISTRICT ITEM NO. NOV 1 2 2008 MINUTES OF THE KU YORBA LINDA WATER DISTRICT BY BOARD OF DIRECTORS REGULAR MEETING October 23, 2008 The October 23, 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 1717 E. Miraloma Avenue, Placentia, CA. DIRECTORS PRESENT AT ROLL CALL STAFF PRESENT John W. Summerfield, President Michael A. Payne, General Manager William R. Mills, Vice President Kenneth R. Vecchiarelli, Asst. G.M. Ric Collett Lee Cory, Operations Manager Diane Cyganik, Finance Director Pat Grady, IT Director Hank Samaripa, Project Engineer Art Vega, Information Systems Admin. Stacy Bavol, Customer Service Supervisor John DeCriscio, Chief Plant Operator Steve Clayton, Plant Operator II Jennifer Hill, Meter Services Rep. Nick Hollon, Meter Reader I Nicole Dalton, Meter Reader I Kenny Graff, Maintenance Worker I Jorge Lopez, Maintenance Worker I Jimmy DeAnda, Maintenance Worker I Anthony Varian, Maintenance Worker I Ruben Gonzales, Facilities Maintenance Annie Alexander, Executive Secretary DIRECTORS ABSENT AT ROLL CALL Paul R. Armstrong Michael J. Beverage INTRODUCTION OF VISITORS AND PUBLIC COMMENTS Assistant General Manager Vecchiarelli introduced the following individuals. Nikki Williams, Project Manager Marina Landscape Contractors Kristen Ness, Executive Assistant Marina Landscape Contractors Nitin Patel, CPA Diehl, Evans & Company Thomas Ziencina, President Datanet Solutions Leonard Dominquez, VP of Bus. Development Datanet Solutions There were no public comments. SPECIAL RECOGNITION Ms. Williams and Ms. Ness presented the Board of Directors with an award from the California Landscape Contractors Association for the District's drought tolerant landscaping. The Board of Directors then recognized the following staff for passing their State of California Water Distribution certification: Steve Clayton, Plant Operator II Nicole Dalton, Meter Reader I Jimmy DeAnda, Maintenance Worker I Nick Hollon, Meter Reader I Jorge Lopez, Maintenance Worker I Anthony Varian, Maintenance Worker I Kenny Graff, Maintenance Worker I Water Distribution V Water Distribution II Water Distribution II Water Distribution II Water Distribution II Water Distribution II Water Distribution I CONSENT CALENDAR Director Summerfield requested to remove Item 1 from the Consent Calendar. Director Collett stated that he would need to abstain from voting on Check No. 50186 of Item 2. This check was removed from the consent calendar and will be brought back for approval at the next Board meeting as there was not a quorum with Director Collett abstaining. On a motion by Director Mills, seconded by Director Collett, the Board of Directors voted 3-0 to approve the Consent Calendar with the exception of Item 1 and Check No. 50186 of Item 2. 2. Payment of bills, refunds, and wire transfers. 3. Progress Payment No. 5 for the Highland Reservoir Replacement Project. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION Director Summerfield requested that Item 1 be corrected to reflect that the Board adjourned to a regular meeting scheduled for October 23, 2008 at 8:30 a.m. On a motion by Director Summerfield, seconded by Director Mills, the Board of Directors voted 3-0 to approve Item 1 as corrected. Minutes of the Regular Board of Directors meeting held October 9, 2008. ACTION CALENDAR 4. Final Audited Financial Statements for the period ending June 30, 2008. Finance Director Cyganik introduced Mr. Patel who then provided a brief overview of the financial statements and responded to questions from the Board. Director Summerfield stated that the Finance-Accounting Committee met with the 2 auditors on October 14, 2008 and recommended that the Board receive and file the final audited financial statements. On a motion by Director Mills, seconded by Director Collett, the Board of Directors voted 3-0 to receive and file the final audited financial statements for the period ending June 30, 2008. 5. Electronic Imaging and Agenda Automation System. Information Technology Director Grady explained the benefits of both systems and responded to questions from the Board. On a motion by Director Collett, seconded by Director Mills, the Board of Directors voted 3-0 to authorize the General Manager to execute a Professional Services Agreement with Datanet Solutions at a cost of $69,192 for the Laserfiche electronic imaging system and the NovusAgenda automation system. 6. Identity Theft Prevention Program. Information Technology Director Grady explained the purpose and impacts of the proposed Identity Theft Prevention program. The most significant impact of the program would be that new customers would be required to sign up for water service in person. Staff recommends that the new policy procedures be effective January 1, 2009 to allow enough time for the program to be implemented properly. Finance Director Cyganik stated that the Executive-Ad min istrative- Organizational Committee had reviewed the program and recommended Board approval. On a motion by Director Mills, seconded by Director Collett, the Board of Directors on a Roll Call voted 3-0 to adopt Resolution 08-12 approving an Identity Theft Prevention Program for the District. DISCUSSION ITEMS 7. None. REPORTS, INFORMATION ITEMS AND COMMENTS 8. a. President's Report President Summerfield announced that he may be unavailable to attend the Finance-Accounting meeting on November 10 and the Board meeting on November 12. Director Collett also announced that he would be unavailable to attend the Board meeting on November 12. Scheduling a date for the next regular Board meeting will be discussed at the Board workshop meeting on October 30. President Summerfield and Vice President Mills will be attending the Fiesta Days Celebration on October 25. b. Directors' Reports Director Mills commented on the status of CalPERS and the possible effect on District contribution rates. General Manager Payne responded to questions from the Board regarding this issue and stated that Finance 3 Director Cyganik was scheduled to attend a CalPERS conference next week. A report will be made to the Finance-Accounting committee at the next meeting. Director Mills also commented on a recent segment in the PBS "California's Water" series and encouraged staff to try to use the video as an educational resource for District customers. Assistant General Manager Vecchiarelli then responded to questions from Director Collett regarding the annexation in progress. C. General Manager's Report Assistant General Manager Vecchiarelli reminded the Board regarding the upcoming Fiesta Days Parade and Golden Guardian Event. General Manager Payne reported that the Boys & Girls Club had recently used the District's training room to conduct a seminar. Staff is working on developing a Facilities Use Agreement for this purpose. Assistant General Manager Vecchiarelli reported that the District had participated in the Heritage Days Parade which went well. COMMITTEE REPORTS 9. a. Executive-Administrative-Organizational Committee (Summerfield/Mills) Alternate: Collett 1) Minutes of the meeting held October 21 were presented at the meeting. Directors Summerfield and Mills attended. Items discussed during the meeting were as follows: Identity Theft Prevention program, termination of agreement with Sacramento Advocates, Inc., Fullerton Arboretum Water Conservation Garden partnership request, status of grant and legislative activities and review of General Counsel's final report on 2008 legislative bills. 2) Meeting scheduled for November 18, 4:00 p.m. b. Finance-Accounting Committee (Beverage/Summerfield) Alternate: Mills 1) Minutes of the meeting held October 14 were included in the agenda packet. Directors Beverage and Summerfield attended. Items discussed during the meeting were the 2007/2008 audited financial statements, investment report ending August 31, 2008 and the Wells Capital portfolio investments. 2) Meeting scheduled for November 10, 8:00 a.m. 4 C. Personnel-Risk Management Committee (Armstrong/Collett) Alternate: Summerfield 1) Minutes of the meeting held October 13 were included in the agenda packet. Directors Collett and Summerfield attended. Items discussed during the meeting were as follows: ACWA Health Benefits Authority 2009 health plan rating restructure, status of recruitments, CalPACS 2008 salary survey, and status of personnel on administrative leave and risk management activities. 2) Meeting scheduled for November 10, 4:00 p.m. d. Planning-Engineering-Operations Committee (Mills/Armstrong) Alternate: Beverage 1) Meeting scheduled for November 6, 4:00 p.m. e. Public Information-Technology Committee (Collett/Beverage) Alternate: Armstrong 1) Meeting scheduled for November 4, 4:00 p.m. f. MWDOC Ad Hoc Committee (Mills/Collett) Alternate: Summen`ield 1) Meeting scheduled for October 28, 4:00 p.m. g. City of Placentia Ad Hoc Committee (Beverage/Payne) 1) Meeting scheduled for November 7, 10:00 a.m. INTERGOVERNMENTAL MEETINGS 10. a. MWDOC/MWD Board, October 15 (Staff) Staff did not attend. b. OCWD Board, October 15 (Staff) Staff did not attend. C. Yorba Lind Planning Commission, October 15 (Collett) Director Collett did not attend. d. Yorba Linda City Council, October 21 (Mills) Director Mills did not attend. 5 BOARD OF DIRECTORS ACTIVITY CALENDAR Authorization to attend meetings scheduled after October 23, 2008. Agenda is available in the District office prior to meeting. October 2008 District Board Meeting, Oct 23, 8:30 a.m. Yorba Linda Fiesta Days Parade, Oct 25, 10:00 a.m. MWDOC Ad Hoc Committee Meeting, Oct 28,4:00 p.m. I Mills/Collett Yorba Linda Planning Commission, Oct 29, 7:00 p.m. I Summerfield District Board Workshop, Oct 30, 8:00 a.m. November 2008 Public Information-Technology Committee, Nov 4, 4:00 p.m. I Collett/Beverage Yorba Linda City Council, Nov 4, 6:30 p.m. I Mills MWDOC/MWD Workshop, Nov 5, 7:30 a.m. I Staff OCWD Board, Nov 5, 5:00 p.m. I Staff Planning-Engineering-Operations Committee, Nov 6, 4:00 q.m. I Mills/Armstrong Placentia Ad Hoc Committee, Nov 7, 10:00 a.m. Beverage Finance-Accounting Committee, Nov 10, 8:00 a.m. I Beverage/Summerfield Personnel-Risk Management Committee, Nov 10, 4:00 D.m. Armstrong/Collett Holiday, Nov 11 I District Offices Closed District Board Meeting, Nov 12, 8:30 a.m. Yorba Linda Planning Commission, Nov 12, 7:00 p.m. Collett 4:00 D.m. Nov 18 Executive-Admin-Organizational Committee I Summerfield/Mills , , Yorba Linda City Council, Nov 18, 6:30 D.m. I Armstrong MWDOC Board, Nov 19, 8:30 a.m. I Staff OCWD Board, Nov 19, 5:00 p.m. I Staff District Board Meeting, Nov 26, 8:30 a.m. I Yorba Linda Planning Commission, Nov 26, 7:00 p.m. " I Summerfield Holiday, Nov 27-28 I District Offices Closed December 2008 Public Information-Technology Committee, Dec 2, 4:00 p.m. I Collett/Beverage Yorba Linda City Council, Dec 2, 6:30 D.m. Mills MWDOC/MWD Workshop, Dec 3, 7:30 a.m. I Staff OCWD Board, Dec 3, 5:00 r).m. I Staff Planninq-Enqineerinq-Operations Committee, Dec 4, 4:00 p.m. I Mills/Armstrong Personnel-Risk Management Committee, Dec 8, 4:00 p.m. I Armstrong/Collett Finance-Accounting Committee, Dec 9, 4:00 p.m. I Beverage/Summerfield Yorba Linda Planning Commission, Dec 10, 7:00 D.M. I Collett District Board Meeting, Dec 11, 8:30 a.m. Executive-Admin-Organizational Committee, Dec 16, 4:00 D.m. I Summerfield/Mills Yorba Linda City Council, Dec 16, 6:30 D.M. I Armstrong MWDOC Board, Dec 17, 8:30 a.m. Staff OCWD Board, Dec 17, 5:00 D.m. I Staff District Board Meeting, Dec 23, 8:30 a.m. MWDOC Ad Hoc Committee Meeting, Dec 23,4:00 p.m. Yorba Linda Planning Commission, Dec 24, 7:00 D.m. ` I Summerfield *May be rescheduled due to the upcoming holidays. 6 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. MWDOC Water Policy Forum and Dinner - November 12, 2008. Director Mills requested to attend the event. ADJOURN TO CLOSED SESSION 12. None ADJOURNMENT On a motion by Director Collett, seconded by Director Mills, the Board of Directors voted to adjourn at 9:45 a.m. to a workshop meeting of the Board of Directors scheduled for October 30, 2008 at 8:00 a.m., at 1717 E. Miraloma Avenue, Placentia 92870. 7 APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ITEM NO. 3 NOV 1 2 2008 MINUTES OF THE YORBA LINDA WATER DISTRICT BY BOARD OF DIRECTORS WORKSHOP MEETING October 30, 2008 The October 30, 2008 workshop meeting of the Yorba Linda Water District Board of Directors was called to order by President Summerfield at 8:00 a.m. The meeting was held at the District's offices at 1717 E. Miraloma Avenue, Placentia, CA. DIRECTORS PRESENT AT ROLL CALL John W. Summerfield, President William R. Mills, Vice President Michael J. Beverage Ric Collett STAFF PRESENT Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Asst. G.M. Lee Cory, Operations Manager Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant Pat Grady, IT Director Annie Alexander, Executive Secretary DIRECTORS ABSENT AT ROLL CALL Paul R. Armstrong INTRODUCTION OF VISITORS AND PUBLIC COMMENTS, None. DISCUSSION ITEMS Assistant General Manager Vecchiarelli provided a PowerPoint presentation to the Board regarding the following: 1. Summary Report of Budget to Actual Operating Costs for Fiscal Year 2007-2008 A summary report of the FY 2007/08 Water Operating Budget was reviewed. Actual expenses for the fiscal year ended up being less than what was budgeted by approximately $1.55M. However, the budget did not include enough revenue to offset expenses resulting in a net operating loss of $700K before depreciation. With depreciation, the loss then increased to $3.76M. Mr. Brett Barbre, MWDOC Director, joined the meeting at 8:17 a.m. Mr. Barbre addressed the Board and requested that a member of the Board attend an ISDOC luncheon where an important vote was to take place. Following discussion, President Summerfield instructed staff to prepare a letter to authorize Assistant General Manager Vecchiarelli to attend the meeting and vote on the Board's behalf. 2. Summary Report and Status of the District's Water Operating Fund and Reserve Funds A summary report of the District's Water Operating Fund was reviewed. The fund has been drawn down by $5.5M over the past 2 years and is continuing in a negative trend. The District's future revenues and expenses could be seriously impacted by the reduced availability and increasing costs of groundwater and imported water and rising energy rates. 3. Consideration of Pass-Through Water Rate Increases in Accordance with Adopted Resolution No. 07-17 Affects of the District's increased costs due to expected pass-throughs from MWD, MWDOC, OCWD and SCE were reviewed. These added costs total approximately $1.45M. The District would need to increase the water rate by 14.5 cents to cover these costs for FY 2008/09 (before depreciation). 4. Potential Effects of Conservation on Revenue The possible effects of water conservation on revenue and expenses were reviewed. The possibility of implementing a tiered rate structure was also discussed. 5. Proposed Modification of the Monthly Service Charge An example of how changes to the monthly service charge affect revenues was discussed for future consideration by the Board. ADJOURNMENT On a motion by Director Beverage, seconded by Director Collett, the Board of Directors voted to adjourn at 10:28 a.m. to a regular meeting of the Board of Directors scheduled for November 12, 2008 at 8:30 a.m., at 1717 E. Miraloma Avenue, Placentia 92870. 2 AGENDA REPORT Board Meeting Date: November 12, 2008 To: Board of Directors From: Kenneth R. Vecchiarelli, Assistant General Manager ITEM NO. 5035` APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT NOV 1 2 2008 BY ad Staff Contact: Diane Cyganik, Finance Director Reviewed by General Counsel: N/A Budgeted: Yes Total Budget: N/A Funding Source: All Funds CEQA Account No: N/A Job No: N/A Compliance: N/A Estimated Costs: $1,836,208.77 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 $76,620.05 to ACWA-HBA for November 2008 health premium; a wire $247.47 to ACWA-EAP for November 2008 EAP; a wire of $27,713.00 to ACWA/JPIA for July through September 2008 workers' compensation premium; a wire of $10,072.90 to Parsons for remaining balance on the August 2008 services rendered invoice; a wire of $4,972.00 to City National Bank for Job 200704 October 2008 retention; a check of $78,695.78 to Citizen's Business Bank for Job 200309 October 2008 retention; a check of $66,787.00 to Cogsdale Services Corporation for Job 200816 software purchase; a check of $708,261.99 to Schuler Engineering for Job 200309 October 2008 progress payment; a check of $92,747.84 to Southern California Edison for October 2008 power expenses; and, a check of $94,848.00 to SSC Construction for Job 200704 October 2008 progress payment. The balance of $448,659.88 is routine invoices. In addition to the above, check number 50186 in the amount of $499.36 was sent October 15, 2008 to Placentia Disposal for September 2008 services. This action was authorized by the General Manager to avoid any late penalty charges. At their regular meeting on October 23, 2008, the Board of Directors did not ratify this payment due to a lack of quorum after one of the three Board members present abstained from voting on the item due to a conflict of interest. For the record, staff recommends that the Board of Directors ratify the payment at this time. In summary, the check register total is $1,609,625.91; payroll No. 21 total is $226,582.86; and, the disbursements of this agenda report are $1,836,208.77. A summary of the checks is as follows: Pavables: Manual Check Check No. 50286 Computer Checks Check Nos. 50287 - 50418 Pavroll #21: Computer Checks Check Nos. 4184 - 4190 Void Check Check Nos. 4191 Manual Checks Check Nos. 4192 - 4199 The disbursement total for the current period is $1,836,208.77, distributed as follows: Water $1,785,267.07 Sewer $ 34,316.29 ID #1 $ 0.00 ID #2 $ 16.625.41 TOTAL $1,836,208.77 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 $1,836,208.77 and ratify payment of check number 50186 in the amount of $499.36 to Placentia Disposal for September services. November 12, 2008 CHECK NUMBERS 50286 TO 50418 $ 1,490,000.49 WIRES: W-102708 ACWA-HBA $ 76,620.05 W-102708A ACWA-EAP $ 247.47 W-11608 ACWA/JPIA $ 27,713.00 W-111208 Parsons $ 10,072.90 W-111208A City National Bank $ 4,972.00 $ 119,625.42 TOTAL OF CHECKS AND WIRES: $ 1,609,625.91 PAYROLL NO. 21: CHECK NUMBERS: 4184 TO 4199 $ 226,582.86 TOTAL: $ 1,836,208.77 APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF NOVEMBER 12, 2008 TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS AS FOLLOWS: WATER $1,785,267.07 SEWER $ 34,316.29 ID # 1 $ 0.00 ID # 2 $ 16,625.41 TOTAL: $1,836,208.77 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 10-24-08 THRU 11-12-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 50290 11-12-08 11-12-08 4 IMPRINT INC 403.53 50291 11-12-08 11-12-08 A-1 FENCE 247.30 50292 11-12-08 11-12-08 ABIGAIL ABBOTT STAFFING SVC 4,192.20 50293 11-12-08 11-12-08 ACWA-ASSN OF CA WATER AGENCIES 500.00 102708 10-27-08 10-27-08 ACWA-H9A 76,620.05 02708A 10-27-08 10-27-08 ACWA-HBA 247.47 W11608 11-06-08 11-06-08 ACWA/JPIA 27,713.00 50294 11-12-08 11-12-08 ANAHEIM WHEEL & TIRE 95.00 50295 11-12-08 11-12-08 AQUA-METRIC SALES CO. 24,437.70 50296 11-12-08 11-12-08 ARMANDO RAYA 120.00 50297 11-12-08 11-12-08 ARROWHEAD 13.49 50298 11-12-08 11-12-08 ART VEGA 460.22 50299 11-12-08 11-12-08 ARTISTIC MAINTENANCE, INC 4,661.85 50300 11-12-08 11-12-08 ASSOCIATED LABORATORIES 3,677.60 50301 11-12-08 11-12-08 AT & T - CALNET2 230.57 50302 11-12-08 11-12-08 AT&T 45.10 50303 11-12-08 11-12-08 AT&T/MCI 2,580.30 50304 11-12-08 11-12-08 ATWOOD SALES 2,062.29 50305 11-12-08 11-12-08 B & M LAWN & GARDEN 108.81 50306 11-12-08 11-12-08 BELL PIPE & SUPPLY 49.14 50307 11-12-08 11-12-08 BROWN AND CALDWELL 250.00 50308 11-12-08 11-12-08 BURLINGAME ENGINEERS INC. 2,758.53 50309 11-12-08 11-12-08 BUTIER ENGINEERING INC 21,245.00 50310 11-12-08 11-12-08 C & L REFRIGERATION CORP. 499.50 50311 11-12-08 11-12-08 C. WELLS PIPELINE 840.45 50312 11-12-08 11-12-08 CADET UNIFORM SERVICE 1,086.93 50313 11-12-08 11-12-08 CALIF WATER ENVIRON ASSN(CWEA) 247.00 50314 11-12-08 11-12-08 CAROLLO ENGINEERS 31,988.51 50315 11-12-08 11-12-08 CDW-G GOVERNMENT, INC 115.81 50316 11-12-08 11-12-08 CITIZEN'S BUSINESS BANK 78,695.78 11208A 11-12-08 11-12-08 CITY NATIONAL BANK 4,972.00 50317 11-12-08 11-12-08 CITY OF ANAHEIM 16,580.57 50318 11-12-08 11-12-08 CITY OF PLACENTIA 493.86 50319 11-12-08 11-12-08 CLA-VAL SERVICE 200.00 50320 11-12-08 11-12-08 CLINICAL LAB. OF SAN BERN. 1,180.00 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 10-24-08 THRU 11-12-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 50321 11-12-08 11-12-08 COGSDALE SERVICES CORPORATION 66,787.00 50322 11-12-08 11-12-08 COLORADO RIVER WATER USERS ASC 305.00 50323 11-12-08 11-12-08 COM SER CO INC. 185.00 50324 11-12-08 11-12-08 COMMUNITY LOCK 52.53 50325 11-12-08 11-12-08 CULLIGAN 1,201.55 50326 11-12-08 11-12-08 CYNTHIA MEJIA 165.67 50327 11-12-08 11-12-08 D. R. CRISKE TRUCKING 700.38 50328 11-12-08 11-12-08 DAPPER TIRE CO. INC. 763.81 50329 11-12-08 11-12-08 DATANET SOLUTIONS INC. 33,189.31 50330 11-12-08 11-12-08 DELL MARKETING L.P. 8,613.80 50331 11-12-08 11-12-08 DELTA DENTAL - PMI 213.51 50332 11-12-08 11-12-08 DIANE DALTON 240.00 50333 11-12-08 11-12-08 DICK'S LOCK & SAFE INC. 390.22 50334 11-12-08 11-12-08 DIEHL, EVANS & COMPANY, LLP 850.00 50335 11-12-08 11-12-08 DORAN BUSINESS PRODUCTS 66.85 50336 11-12-08 11-12-08 E. H. WACHS COMPANY 203.24 50337 11-12-08 11-12-08 EISEL ENTERPRISES, INC. 251.06 50338 11-12-08 11-12-08 FASTENAL COMPANY 46.61 50339 11-12-08 11-12-08 FIREMASTER-INLAND REGION 298.16 50340 11-12-08 11-12-08 FLEET SERVICES, INC 1,581.14 50341 11-12-08 11-12-08 FRY'S ELECTRONICS 100.81 50342 11-12-08 11-12-08 HAAKER EQUIPMENT CO. 2,892.77 50343 11-12-08 11-12-08 HSBC BUSINESS SOLUTIONS 694.01 50344 11-12-08 11-12-08 INFOSEND 19,476.81 50345 11-12-08 11-12-08 INTERIORS BY JANI-TRESS 3,659.00 50346 11-12-08 11-12-08 J & S CONSTRUCTION 14,847.75 50287 11-12-08 11-12-08 J L MADISON CO 774.26 50347 11-12-08 11-12-08 JEFF MC DONALD 50.00 50348 11-12-08 11-12-08 JENNIFER HILL 666.04 50349 11-12-08 11-12-08 JESUS SOSA 80.00 50288 11-12-08 11-12-08 JOE SIEBER 56.20 50350 11-12-08 11-12-08 JON'S FLAGS & POLES, INC. 438.00 50351 11-12-08 11-12-08 JOSEPH G. POLLARD CO., INC 4,635.00 50352 11-12-08 11-12-08 KAREN SHEA 263.83 50353 11-12-08 11-12-08 KENNY GRAFF 70.00 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 10-24-08 THRU 11-12-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 50354 11-12-08 11-12-08 KTS SERVICES, INC. 486.00 50355 11-12-08 11-12-08 LEE CORY 184.01 50356 11-12-08 11-12-08 LIEBERT CASSIDY WHITMORE 2,062.00 50357 11-12-08 11-12-08 Mc CROMETER INC 245.01 50358 11-12-08 11-12-08 MC MASTER-CARR SUPPLY CO. 634.93 50289 11-12-08 11-12-08 McKENNA GENERAL ENGINEERING 353.60 50359 11-12-08 11-12-08 METCALF & EDDY, INC. 1,510.00 50360 11-12-08 11-12-08 MINE SAFETY APPLIANCE CO 5,195.14 50361 11-12-08 11-12-08 MINUTEMAN PRESS 179.19 50362 11-12-08 11-12-08 MOBILE HOSE & HYDRAULIC SUPPLY 453.42 50363 11-12-08 11-12-08 MTL OPEN SYSTEM 1,303.00 50364 11-12-08 11-12-08 MUDGE FASTENERS, INC 1,408.43 50286 10-27-08 10-27-08 MUNICIPAL WATER DISTRICT 120.00 50365 11-12-08 11-12-08 MURCAL, INC. 1,636.85 50366 11-12-08 11-12-08 NEW PIG CORPORATION 521.00 50367 11-12-08 11-12-08 NEXTEL OF CALIFORNIA 3,811.33 50368 11-12-08 11-12-08 NICKEY PETROLEUM CO 5,133.53 50369 11-12-08 11-12-08 OFFICE SOLUTIONS 884.06 50370 11-12-08 11-12-08 OMNI WESTERN INC 430.02 50371 11-12-08 11-12-08 PACIFIC TRUCK EQUIPMENT CO 39,450.63 111208 11-12-08 11-12-08 PARSONS ENGINEERING SCIENCE 10,072.90 50372 11-12-08 11-12-08 PRAXAIR DISTRIBUTION 368.86 50373 11-12-08 11-12-08 PROJECT PARTNERS, INC. 15,840.00 50374 11-12-08 11-12-08 PSOMAS & ASSOCIATES 8,692.65 50375 11-12-08 11-12-08 QUINN POWER SYSTEMS ASSOCIATES 2,216.55 50376 11-12-08 11-12-08 R J SERVICES, INC 2,491.18 50377 11-12-08 11-12-08 R&S OVERHEAD DOORS 3,900.00 50378 11-12-08 11-12-08 RED WING SHOE STORE - ORANGE 111.20 50379 11-12-08 11-12-08 REGULATION COMPLIANCE INC. 2,125.00 50380 11-12-08 11-12-08 RICK WALKEMEYER 1,257.54 50381 11-12-08 11-12-08 SACRAMENTO ADVOCATES 3,000.00 50382 11-12-08 11-12-08 SAFE GLOW 1,105.52 50383 11-12-08 11-12-08 SANCON TECHNOLOGIES INC. 15,750.00 50384 11-12-08 11-12-08 SANTA FE PLUMBING 4,860.00 50385 11-12-08 11-12-08 SC FUELS 1,377.76 Yorba Linda Water DistrictCHECK REGISTER FOR CHECKS DATED 10-24-08 THRU 11-12-08 Check. Check... Posting. Vendor Name Check..... No Date Date Amount 50386 50387 50388 50389 50390 50391 50392 50393 50394 50395 50396 50397 50398 50399 50400 50401 50402 50403 50404 50405 50406 50407 50408 50409 50410 50411 50412 50413 50414 50415 50416 50417 50418 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 11-12-08 SCHNEIDER AUTOMATION, INC. SCHULER ENGINEERING CORP. SCOTT W. MOULTON SEVERN TRENT SERVICES SHRED-IT LOS ANGELES SOUTHERN CALIF EDISON CO. SOUTHERN CALIF GAS CO. SOUTHWEST VALVE SPECIALIZED CLEANING SPINITAR SSC CONSTRUCTION, INC ST.JUDE MEDICAL CENTER STACY BAVOL/PETTY CASH STAPLES BUSINESS ADVANTAGE STATE OF CALIF-DEPT OF HEALTH STEVEN ENTERPRISES SUNNY EXPRESS SUNRISE MEDICAL GROUP SUPPORT PRODUCT SERVICES TIME WARNER CABLE TOXGUARD FLUID TECHNOLOGIES U LINE U S BANK TRUST NAT'L ASSN. U S POSTMASTER UNITED INDUSTRIES USA BLUE BOOK VERIZON WIRELESS VILLAGE NURSERIES VISION SERVICE PLAN WELLS SUPPLY CO WESCOM CREDIT UNION WESTSIDE BUILDING MATERIAL YORBA LINDA AUTO PARTS 1,185.25 708,261.99 7,543.75 492.88 68.60 92,747.84 27,148.24 1,385.65 188.00 583.61 94,848.00 1,056.00 398.48 2,249.78 H 6,186.30 97.38 46.23 271.52 26,970.90 187.38 307.90 372.36 2,800.00 180.00 1,845.69 444.25 423.27 81.24 1,636.62 14,214.03 202.85 536.28 1,063.45 1,609,625.91 ITEM NO. AGENDA REPORT Board Meeting Date: November 12, 2008 To: Board of Directors From: Ken Vecchiarelli, Assistant General Manager Staff Contact: Leon de los Reyes, Water Quality Engineer APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT NOV 1 2 2008 BY 14 ' Reviewed by General Counsel: No Budgeted: Yes Total Budget: $ 11.2M Funding Source: Water Revenue Bond CEQA Account No: 102-2700 Job No: 200309 Compliance: Mitigated Neg. Dec. Estimated Costs: $ 11.2M Dept: Eng Subject: Progress Payment No. 6 for the Highland Reservoir Replacement Project SUMMARY: The Highland Reservoir is a critical element of the District's water supply chain. The existing structure has surpassed its useful life and has become a potential water quality and maintenance liability. Increasing the size and reliability of the Highland Reservoir, as recommended in the District's 2005 Domestic Water System Master Plan, improves system integrity, service reliability and secures flexibility in the District's service by further optimizing groundwater production and transmission capabilities. The Board of Directors awarded a contract to Schuler Engineering for construction of the Highland Reservoir Replacement Project on April 10, 2008 and approved a project construction budget of $11.2M on May 15, 2008. DISCUSSION: In accordance with the contract documents, Schuler Engineering Corporation submitted a request for Progress Payment No. 6 for the period ending October 31, 2008. This progress pay request includes small percentage payments for shoring and sheet bracing, mobilization including project related office expenses and submittals, electrical and instrumentation, 65% underground yard piping including piping connections to the Highland Booster Pump Station, and 23% of temporary tank related tasks such as the foundation ring walls for both temporary tanks, and their overflow and drain piping structures. The status of the construction contract with Schuler Engineering is as follows: • The current contract is $9,049,346 and 730 calendar days starting June 2, 2008. • If approved, Progress Payment No. 6 is $786,957.77 (8.7% of total contract amount less 10% retention of $78,695.78 for a net payment of $708,261.99. • If approved, total progress payments to date including retentions are $2,541,645.39 (28.1 % of the total contract amount). • As of October 31, 2008, 152 calendar days were used (20.8% of the contract time). COPY Staff and Carollo Engineers, the District's construction management consultant, reviewed the progress payment request and recommend payment. A copy of Progress Payment No. 6 is attached for your information. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors awarded a construction contract to Schuler Engineering on April 10, 2008 in the amount of $9,049,346 for construction of the project. On May 15, 2008, the Board approved execution of a Professional Service Agreement with Carollo Engineers in the amount of $605,856 for engineering support services, construction management and backup inspection services; a Professional Service Agreement with Leighton Consulting Engineers in the amount of $86,200 for geotechnical services, soils, concrete and materials testing; a Professional Service Agreement with BonTerra Consulting in the amount of $22,251 for environmental compliance services; and approved the construction budget in the amount of $11,200,000 for construction of the Highland Reservoir Replacement Project. The Board has approved five progress payments to date, the most recent of which was approved on October 9, 2008. STAFF RECOMMENDATION: Staff recommends the Board of Directors approve Progress Payment No. 6 in the net amount of $708,261.99 to Schuler Engineering Corporation and 10% retention of $78,695.78 deposited to Citizens Business Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No. 200309. COMMITTEE RECOMMENDATION: Monthly status reports for this project are reviewed and discussed with the Planning- Engineering-Operations Committee at their regular meetings. YORBA LINDA WATER DISTRICT PROJECT Highland Reservoir LOCATION Yorba Linda PROJECT NO. CONTRACTOR Schuler Engineering ORIGINAL CONTRACT AMOUNT: $ 9.049.348 AUTHORIZED CHANGE ORDERS: $ - REVISED CONTRACT AMOUNT: $ 9,049,348 PROGRESS PAY ESTIMATE FOR PERIOD VALUE OF WORK COMPLETED CHANGE ORDER WORK COMPLETED TOTAL VALUE OF WORK COMPLETED LESS RETENTION 10°x6 LESS OTHER DEDUCTIONS AMOUNT DUE THIS ESTIMATE LESS AMOUNT PREVIOUSLY PAID BALANCE DUE THIS ESTIMATE NOTICE TO PROCEED COMPLETION TIME APPROVED TIME EXTENSIONS TOTAL CONTRACT TIME TIME EXPENDED TO DATE TIME REMAINING DATE October 311008 October 1, 2008 TO October 31, 2008 PREVIOUS THIS MONTH TO DATE $ 1.754,687.62 $ + 786,957.77 1 $ 2,641,645.39 $ - $ - Is - $ 1,754,687.62 $ 786.957.77 1 $ 2,541,645.39 $ 254.164.54 $ 2.287.480.85 $ 1.579,218.86 1$ 708.261.99 June 2,2008 730 CALENDAR DAYS CALENDAR DAYS 730 CALENDAR DAYS 162 CALENDAR DAYS 878 CALENDAR DAYS REQUESTED BY: / DATE: 4~HULER EN GI EERING CO CTOR APPROVED BY: DATE: CAROLLO-O NER'S- PRESENTATIVE APPROVED BY: DATE: YL D- OWNER PROGRESS PAY REPORT PROGRESS PAY REQUEST NO. 6 J- PAGE 1 OF 1 PAGES 200309 61- ~o ITEM NO. AGENDA REPORT Board Meeting Date: November 12, 2008 APPROVED BY THE BOARD OF DIRECTORS To: Board of Directors OF THE YORBA LINDA WATER DISTRICT From: Ken Vecchiarelli, Assistant General Manager NOV 1 2 2008 Staff Contact: Joe Polimino, Project Engineer BY a 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. 18 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. 18, in the amount of $99,840.00 for completed work through October 31, 2008. During this period, the installation continued of drainage piping and retaining wall footings. The Contractor also conducted some backfilling and structure waterproofing. The status of the construction contract with SSC Construction, Inc. is as follows: • The current contract is $10,697,781.37 and 574 calendar days starting June 18, 2007. • If approved, Progress Payment No. 18 is $99,840.00 (0.9% of the total contract amount), less 5% retention of $4,992.00 for a net payment of $94,848.00. • Total payments to date including retention are $9,893,868.92 (92.5% of the total contract amount). • As of October 31, 2008, 502 calendar days were used (87.5% of the contract time). Staff and Butier, the District's construction manager for the project, have reviewed the contractor's progress payment and recommend approval. A copy of Progress Payment No. 18 is attached for your reference. COPY 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. On June 30, 2008, staff approved Change Order No. 2 in the net amount of $2,887.92 increasing the total contract to $10,642,387.92. On July 10, 2008, the Board of Directors approved Change Order No. 3 in the amount of $55,393.45 and an additional 17 calendar days to be added to the contract. The Board has approved seventeen progress payments to date for this project, the most recent of which was approved on October 23, 2008. STAFF RECOMMENDATION: Approve Progress Payment No. 18 in the net amount of $94,848.00 to SSC Construction, Inc. and 5% retention of $4,992.00 deposited to City National Bank escrow account for construction of the Lakeview Reservoir Project, Job No. 200704. YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT PROJECT Lakeview Reservoir Project PROGRESS PAY REQUEST NO. 18 LOCATION Yorba Linda, CA PROJECT NO. 200704 PAGE 1 OF 1 PAGES CONTRACTOR SSC Construction, inc. DATE. 10/31/08 ORIGINAL CONTRACT AMOUNT: $ 10,489,600.00 AUTHORIZED CHANGE ORDERS: 208,281.37 REVISED CONTRACT AMOUNT: 10,697,781.37 PROGRESS PAY ESTIMATE FOR PERIOD VALUE OF WORK COMPLETED CHANGE ORDER WORK COMPLETED TOTAL VALUE OF WORK COMPLETED LESS RETENTION 5% LESS OTHER DEDUCTIONS NET EARNED TO DATE LESS AMOUNT PREVIOUSLY PAID BALANCE DUE THIS ESTIMATE October 1, 2008 TO October 31, 2008 PREVIOUS THIS MONTH TO DATE $ 9,585,747.55 ~ $ 99,840.00 $ 9,685,587.55 $ 208,281.37 ! $ - $ 208,281.37 $ 9,794,028.92 $ 99,840.00 $ 9,893,868.92 $ 494,693.45 50% of Electronic Wire Fees $ 150.00 $ 9,399,025.47 $ 9,304,177.47 $ 94,848.00 NOTICE TO PROCEED June 18, 2007 COMPLETION TIME 487 CALENDAR DAYS APPROVED TIME EXTENSIONS 87 CALENDAR DAYS TOTAL CONTRACT TIME 674 CALENDAR DAYS TIME EXPENDED TO DATE 602 CALENDAR DAYS TIME REMAINING 72 CALENDAR DAYS REQUESTED BY: Brent Browe , Asst. Contro er, S Cohstruction Inc. l , ' 1 APPROVED BY: C John Whisen hun , Construction Manager, Butier Engineering APPROVED BY: Kehneth R. ecchiarelli, Assistant General Manager, YLWD DATE: ~/10~ DATE: I ( 3 /~Q DATE: 0 ITEM NO. AGENDA REPORT Board Meeting Date: November 12, 2008 To: Board of Directors From: Ken Vecchiarelli, Assistant General Manager Staff Contact: Ariel Bacani, Engineering Technician Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: u i APPROVED BY &ECTORS OF THE YORBA LINDA WATER DISTRICT 008 NW/ BY N/A Dept: Eng Developer Funded 1/2-2600 Job No: 200818 N/A Subject: Terms and Conditions for Water and Sewer Service with Habitat for Humanity of Orange County. SUMMARY: Habitat for Humanity of Orange County is proposing to develop three residential lots within Pressure Zone 2 of the District's Western Service Area. The project consists of approximately 0.31 acres and is located at the northwest corner of Yorba Linda Blvd. and Park Ave. An exhibit depicting the location of the project is attached. DISCUSSION: The District has an existing 8-inch water pipeline in Park Ave. that is adequate in size and pressure to provide water service to the proposed development. The applicant is requesting to install 3 new water services and use an existing service at Park Ave. Habitat for Humanity is conditioned to abandon an existing service at Yorba Linda Blvd. The project site is located within Drainage Area "2" of the District's Sewer Service Area. An existing 6-inch sewer main fronts the development at Park Ave. The applicant has requested to use an existing lateral and install two new laterals to this sewer main. They are required to abandon the other existing sewer lateral at Park Ave. The Terms and Conditions for Water and Sewer Service with Habitat for Humanity of Orange County are attached for your consideration. STAFF RECOMMENDATION: Approve the Terms and Conditions for Water and Sewer Service with Habitat for Humanity of Orange County, Job No. 200818. Co., nw-1 I - I I rI 2 PROPOSED 4" SEWER LATERALS <w> I I 2 PROPOSED 314" WATER SERV ICES ss PROPOSED 1" : r I WATER SERVICE FOR IRRIGATION I aI I EX. 4" SEWER LATERAL FOR UNIT 1 UNIT 2 UNIT 3 EX. S R LA UNIT 3 - - -- Li I I L L� i X.FH ' NIIfIR ll l Rs L_ .,..____ e plllw C3 -- EX. 4" SEWER LATERAL _, W70 - ___ _Ll � J I X. S ER LAT i TO BE ABANDONED I I — -J r- PROPOSE BU1LulNGS I a EX. 314" WATER SERVICE w FOR UNIT 3 o� rot L Llr.J�------------------- -------- —r- ---------- 1 EXISTING T' SERVICE I� TO BE ABANDONED 1 � YORBA LINDA BLVD. ss EX.6"SEWER EX.8"SEWER __ _ - _---- --_---_--_�— — �_--_-- -- --------- -------------------------------- ---- — E N w 4 w LOCATION MAP PREPARED BY: SCALE: �� EL YORBA LINDA WATER DISTRICT Exhibit DATE: NO SCALE WATER AND SEWER SERVICE WITH HABITAT 11-04-08 w1717 E. MIA, CALIFORNIA MAVENUE FOR HUMANITY OF ORANGE COUNTY FILENAME: PLACENTIA, CFORNIA 92870 (714)701-3000 200818 Date: November 12, 2008 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER AND SEWER SERVICE NAME OF APPLICANT: HABITAT FOR HUMANITY OF ORANGE COUNTY LOCATION OF PROJECT: NW CORNER OF YORBA LINDA BLVD. & PARK AVE. TRACT NUMBER: N/A JOB NUMBER: 200818 LOT(S): 3 The applicant will be required to complete to the satisfaction of the District the following items that have an "X" following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) X The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 1 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. I. 4) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 2 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. 2. 5) X The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 6) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. Page 2 of 5 NAME OF APPLICANT: HABITAT FOR HUMANITY OF ORANGE COUNTY LOCATION OF PROJECT: NW CORNER OF YORBA LINDA BLVD. & PARK AVE. 7) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. 8) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 9) The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 10) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District's approval of the construction plans. 11) X The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 12) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 13) X The applicant shall provide per the District specifications one complete set of "As Built" mylars and electronic copy of ACAD drawings (version 2002 or later) for the Water and Sewer facilities. 14) X The applicant shall complete an Application to and Agreement for Water Service. 15) X The applicant shall pay all of the water fees as required by the Rules and Regulations of the District. 16) X The applicant shall pay meter fees associated with the installation of radio read meters for this project. 17) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Water Service. 18) X The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. Page 3 of 5 NAME OF APPLICANT: HABITAT FOR HUMANITY OF ORANGE COUNTY LOCATION OF PROJECT: NW CORNER OF YORBA LINDA BLVD. & PARK AVE. 19) X The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan, the Insurance Services Office's suggested standards contained in the "Grading Schedule of Municipal Fire Protection", and the District's Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 20) X The applicant's water facilities (on-site) shall be Privatelv owned and maintained. 21) X The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. 22) X The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 23) The applicant shall install one (j) water Sampling Station(s) in conformance with the District's Standard Plans. 24) X The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 25) The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 26) X All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 27) X The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 28) X The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 29) X The applicant shall adjust and raise to grade all valve covers within the limits of this project. 30) X The applicant shall install a pressure regulator in all dwellings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 31) X The applicant shall complete a Temporary Water Permit for all water that will be used through the new water services to serve the new dwellings. Page 4 of 5 NAME OF APPLICANT: HABITAT FOR HUMANITY OF ORANGE COUNTY LOCATION OF PROJECT: NW CORNER OF YORBA LINDA BLVD. & PARK AVE. 32) X The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 33) X The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 34) X The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly prior to the water meters being turned on for service. 35) X The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 36) X The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District's Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 37) The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 38) X The applicant shall complete an Application to and Agreement for Sewer Service. 39) X The applicant shall comply with the Rules and Regulations of the Yorba Linda Water District with regard to the Rendition of Sanitary Sewer Service. 40) X The applicant shall pay all of the sewer fees as required by the Rules and Regulations of the District. 41) X The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and Standard Specifications. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 42) X The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 43) X The applicant's sewer facilities (on-site) shall be Privatelv owned and maintained. 44) X The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District's Plans and Specifications. Page 5 of 5 NAME OF APPLICANT: HABITAT FOR HUMANITY OF ORANGE COUNTY LOCATION OF PROJECT: NW CORNER OF YORBA LINDA BLVD. & PARK AVE. 45) X The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. 46) X The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 47) X The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 48) X The applicant shall use an existing water service, install three new water services, and cut and plug an existing service at the water main adjacent to the project site, per approved plans and District Specifications. 49) X The applicant shall use an existing sewer lateral, install two new sewer laterals, and abandon an existing lateral at the sewer main adjacent to the project site, per approved plans and District Specifications. I hereby certify that the foregoing Terms and Conditions were approved at the November 12, 2008 Regular meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application To and Agreement with the Yorba Linda water District for Water and/or Sewer Service is not executed for the project under consideration. ;~LaL le /Cz-c' 1-4-ra~ - ~o~ Micfhael A. Payne, General Manager ITEM NO. 16 AGENDA REPORT Board Meeting Date: November 12, 2008 To: Board of Directors -4PPAGbE~BYTHEBOARD OFDIRECTORS '6~p OF THE YORBA LINDA WATER DISTRICT 0A From: Michael A. Payne, General Manager NOV 1 2 2008 APP"' Staff Contact: Cindy Mejia, Management Analyst ~j BY Reviewed by General Counsel: No Budgeted: Yes Total Budget: $ 41,420 Funding Source: Water Operating Fund CEQA Account No: 121780 Job No: Compliance: N/A Estimated Costs: $ 37,000 Dept: Admin Subject: Consider terminating the Professional Services Agreement with Sacramento Advocates, Inc. SUMMARY: Sacramento Advocates, Inc. has represented the District's interests as a lobbyist before the California Legislature, the Governor's office and any other agencies and departments of the state as deemed necessary since 1997. Currently, Sacramento Advocates, Inc. has a contract with the District until March 13, 2010. DISCUSSION: The State of California recently adopted their 2008/09 budget without the State taking the ad valorem property taxes from agencies like YLWD. With that issue placed on the back burner for another year and with no direct issues in the State directly involving YLWD, staff recommends the Board of Directors authorize the General Manager to terminate the contract with Sacramento Advocates effective November 30, 2008. If an issue should arise during the year having a direct financial impact on YLWD, the District could contract with Sacramento Advocates in the future based on a specific fee. The District can also contract with Townsend Public Affairs (TPA). TPA currently provides assistance to the District in soliciting grants from the State of California as well as from Washington D.C. TPA has the ability and expertise to help with lobbying efforts in the State should the need arise as well. The Professional Services Agreement with Sacramento Advocates, Inc. requires a 10 day written notice to cancel the agreement. If approved, the staff would recommend terminating the contract effective November 30, 2008. Sacramento Advocates is under contract with a retainer fee of $3,000 a month. If there are out of pocket expenses those are billed separately. The District's adopted budget has identified $41,420 for fiscal year 2008/09. PRIOR RELEVANT BOARD ACTION(S): Sacramento Advocates has provided legislative analysis and lobbying services to the District since 1997. In March 2005, the Board of Directors extended the professional services agreement with Sacramento Advocates for three years. In March 2008, the Board of Directors approved a two year extension with Sacramento Advocates, Inc. STAFF RECOMMENDATION: That the Board of Directors authorize the General Manager to terminate the Professional Services Agreement with Sacramento Advocates, Inc. effective November 30, 2008. COMMITTEE RECOMMENDATION: The Executive-Administrative-Organizational Committee reviewed this issue at their committee meeting on October 21, 2008. The Committee supports staffs recommendation to terminate the Professional Services Agreement with Sacramento Advocates, Inc. effective November 30, 2008. ITEM NO. %Od MCCORMICK. KivrrAN 6_ BEHRENS. LLP LAVV"ER5 650 TOWN CENTER DRIVE y. L. 1MIK EI Mr:CORMIC!"' SUITE 100 ARTHUR G. KIDMAN' ' CALIFORNIA 926`2'.6 COSTA MESA RUSSELL G. BEHRENS . SUZANNE M. TAGUE't TELEPHONES 1714) 755-3100 DAVID D. BOYER' 16001 755-3125 DANIEL J. PAYNE' FAX (714) -75~- 3110 JO AF J. BENNETT EDDY R. BELTRAN www.mkblawysr;.com HANNAH BENTLEY- TRAM T. TRAIN JOHN P. GLOWACKI 'A PROFESSIONAL CORPORATION (CERTIFIED SPECIALIST - PROBATE Q October 1 ~ 2008 ESTATE PLANNING 6 TRUST LAW . THE STATE BAR OF CALIFORNIA BOARD OF LEGAL SPECIALIZATION "OF COUNSEL MEMORANDUM TO WATER AGENCY CLIENTS FROM McCormick, Kidman & Behrens, LLP RE Final Report on 2008 Legislative Bills O C T 1 5 2008 Enclosed please find the final Legislative Report for the 2008 legislative session of the California Legislature. With respect to the bills we have reported on in our prior reports, the report shows (1) the chapter number of each bill that was enacted. (2) the bills which were vetoed and the reason for the veto, and (3) bills that died in the legislature since our last report. As usual, the bills are organized according to general subject matter and a table of contents and an index by bill number are included. We have access to bill text and other information i1' more detail is needed or if there are questions on any of the summaries provided. MCCORMICK, KIDMAN & BEHRENS. UP By: AR'1 HURIG. KIDMAN AGK\ERB TABLE OF CONTENTS A. PROPERTY TAX ALLOCATION; REVENUE AND COLLECTION PROCEDURES B. WATER RESOURCES MANAGEMENT/WATER PROJECTS C. INFRASTRUCTURE FINANCING D. EMINENT DOMAIN E. PUBLIC OFFICIALS; ETHICS F. BROWN ACT/PUBLIC RECORDS G. LABOR, EMPLOYMENT AND BENEFITS H. PUBLIC WORKS/CONTRACTS 1. WATER SUPPLY AND LAND DEVELOPMENT .I. WATER QUALITY/POLLUTION K. WATER RATES AND REVENUE PROCEDURES L. ENVIRONMENTAL QUALITY AND ENDANGERED SPECIES M. SPECIFIC AGENCIES AND/OR PROJECTS N. LAFCO McCormick, LEGISI_-17I1 'I R PORT FINAL LEGISLATIVE REPORT FOR 2008 October 1-3, .WOOS A. PROPERTY TAX ALLOCATION: REVENUE AND COLLECTION PROCEDURES 13. WATER RESOURCES MANAGEMENT/WATER PROJECTS In our last report we mentioned a funding proposal (SBX2 6) by Sen. Mike Machado, that contained provisions for water storage and Delta protection. While that proposal failed passage, another proposal (SBX2 1; Perata) passed and was signed by the Governor. The legislation authorizes the use of bond money approved by the voters in 2006 and appropriates $812 for several projects. including $200 million for projects in the Sacramento San Joaquin Bay Delta and $100 million to cleanup groundwater basins in Southern California. In addition, the Governor and Sen. Dianne Feinstein continue to work together on a $9.3 billion water measure that the Governor would like to place in front of the voters next year. B.1 AB 2175 (Laird/Feuer) Water conservation This bill failed passage. This bill would have required the Department of Water Resources to establish a numeric water conservation target for the state, initially for 2030, that provides for the maximum feasible and cost-effective increase in water conservation. The Department of Water Resources would have been required to provide a list of technically feasible water conservation measures and water suppliers would be required to adopt those measures where locally cost effective or implement alternative measures that achiever equal or greater water savings. ,1C1+A Position: Opl3ose unless amended Status: Dead C. INFRASTRUCTURE FINANCING/OTHER INFRASTRUCTURE 1). EMINENT DOMAIN Kid-man & Bet1 Lens, J,LP E. PUBLIC OFFICIALS: ETHICS McCormick., LEGISL-J I r1'r Aci>otz F. BROWN ACT/PUBLIC RECORDS F.l SB 1732 (Romero) K_idman & B -hreri.s, T_,I,n 06iobt-i- 2008 Local Agencies The Ralph M. Brown Act requires that all meetings of a legislative body of a local agency be open and public and all persons be permitted to attend unless a closed session is authorized. The act prohibits any use of direct communication, personal intermediaries, or technological devices that is employed by a majority of the members of the legislative body to develop a collective concurrence as to action to be taken on an item, with an exception for an authorized teleconference. In T'Volfe r. Cite of'Fremonl, (2006) 144 Cal.AppAth 533, an appellate court held that a violation of this prohibition occurs only if a series of meetings by members of a body results in a collective concurrence. This bill is similar to SB 964, which was vetoed by the Governor last year. In doing so lie stated that although the bill sought to solve a perceived defect in the Brown Act addressed in Wolfe, it "imposed an impractical standard for compliance on local officials and could potentially prohibit communication among officials and agency staff." Like last year, this bill prohibits a majority of members of a legislative body of a local agency from using, outside a meeting authorized by the act, a series of communications of any kind, directly or through intermediaries, to discuss, deliberate, or take action on any item of business that is within the subject matter jurisdiction of the legislative body. It also states the Legislature's declaration that it disapproves the holding of the Wolfe court to the extent it construes the prohibition on serial meetings and would state its intention that the changes made by this bill supersede that holding. In order to address the Governor's concerns, this bill also provides that the changes made by this bill do not prevent an employee or official of a local agency, from engaging in separate conversations or communications, outside of a meeting authorized by the Brown Act, with members of a legislative body in order to answer questions or provide information regarding a matter that is within the subject matter jurisdiction of the local agency, if that person does not communicate to members of the legislative body the comments or position of any other member or members of the body. fl CYi~il Position: lValch G G.1 LABOR, EMPLOYMENT AND 13ENEFITS AB 1858 (Jeffries) Staters: Ch. 63 Public employees: retirement benefits forfeiture AC'iVA Position: Favor Status: Dead McCormick, Kidmali Li,GIBE rrJ1 'E REPORT G.2 AB 1936 (Ernmerson) & Beh rrerl C, LLP October 13, 2008 Public Employees' Retirement System: Nonprofit Mutual Water Companies This bill permits a nonprofit mutual water company that operates pursuant to specified provisions of law and that meets certain requirements to enter into a contract to participate in PERS. The nonprofit mutual water company must receive an advisory opinion from the IRS and 50 % of its shares have to be owned by a municipality. In addition, its governing body must be a local public agency. Meeting these qualifications would make the mutual water company a "public agency" for only the purposes of this bill. ACWA Position: Favor H. PUBLIC WORKS/CONTRACTS 1-1.1 A13 642 (Wolk) Status. Ch. 191 Design-build: counties, cities, and special districts; Certain prototype projects Existing law requires public entities to comply with procedures in soliciting and evaluating bids and awarding contracts to erect, construct, alter, repair, or improve any public structure, building, road, or other public improvement. Current law allows for the use of the design-build process for certain counties With very specific provisions. This bill allows cities, counties, and special districts to use design-build contracting for the construction of regional and local wastewater treatment facilities, regional and local solid waste management facilities, or regional and local water recycling facilities whose cost reaches at least $2.5 million or more. Twenty design-build projects are authorized under the new law. The application process for the projects will be handled through the Office of Planning and Research. A0,K4 Position: Favor 11.2 AB 983 (Ma) Status: Ch. 31-1 Public contracts: plans and specifications Although enrolled by the Legislature, this bill was vetoed by the Governor. Existing law prohibits a local public entity, charter city, or charter county from requiring a bidder to assume responsibility 1c1, the completeness and accuracy of architectural or engineering plans and specifications on public worxs projects, except on clearly designated design-build projects. This bill would have required a local public entity, charter- city, or charter county, before entering into any contract for a project, to provide full, complete, and accurate plans and specifications and estimates of cost, giving such direction as will enable any competent mechanic or other builder to carry them out. However, this bill would have also specified that a local public entity, chartercity. or McCormick, Kidman & Behrens, LL.P LE Gi3'L,1771'i_ AEPO1tT October 13, 2005' charter county would not be required to provide bidders with plans and specifications for projects that are completed entirely through an annual contract for repair, remodeling, or other repetitive work according to unit prices. This bill would have exempted from these provisions any clearly identified design-build projects or design-build portions thereof. This bill would have further provide that these provisions must not be construed to require a contractor to prove an affirmative or intentional misrepresentation or active concealment on the part of the public entity, charter city, or charter county that provides the plans and specifications. This bill would have also specified that these provisions would not expand, restrict, or otherwise change the liability or potential liability of a design professional. The Governor vetoed this bill because he felt it was premature. As set forth in his veto message, the California Supreme Court recently agreed to review a case that involves the issues raised by the bill (Los Angeles Unified School District v. Great American Insurance Co., et. al.). Thus, the Governor felt it "is prudent for the court to rule on current law before making any unnecessary or ill-advised changes." AUIVA Posilion: Oppose ,Slulus: Veloecl H.3 AB 2002 (De Leon) Public works: prevailing wages Although enrolled by the Legislature, this bill was vetoed by the Governor. Existing law requires a contractor or subcontractor to submit, to the state or political subdivision on whose behalf a public work is being performed, a penalty of not more than $50 per day, as provided and determined by the Labor Commissioner, for violations ol"prevailing wage provisions. This bill would have increased the penalty to $100 for each calendar day, plus 10% interest per annum from the date of the service of the assessment to the date the assessment becomes final. Existing law also requires each contractor and subcontractor performing work on a public work to keep accurate payroll records regarding his or her employees that may be accessed by the public through the awarding body or state agencies and requires the contractor or subcontractor to produce certified copies of those records, as requested by the public, as provided, within 10 days subsequent to receipt of a written notice for those records. Existing law imposes, on the contractor or subcontractor, a penalty of $25 for each calendar day of noncompliance but provides that a contractor is not subject to a penalty assessment due to the failure of its subcontractor to comply with specified requirements. This bill would have increased the penalty to $50 for each calendar day, plus interest from the date of violation. Finally, this bill would have also subjected a contractor to a penalty assessment, as specified, only when a contractor had knowledge, or should have had knowledge of, its subcontractor's noncompliance. McCormick, Kidman & Betrerls, j,LP L~.crs~~ rril ~c Rct>owj, October 13, 2,008 In vetoing this bill, the Governor stated, "[w jhile I strongly supporrt efforts to ensure compliance,,ti ith our prevailing wage laws, the proponents of this measure have failed to demonstrate a need for the increased penalties or evidence that simply doubling penalties and creating new liabilities is an effective way of achieving greater compliance." Instead, the Governor opined that "[s]trong enforcement of existing laws, as well as concerted public outreach and education of employers, will do far more to ensure compliance with our laws than simply indiscriminately doubling penalties." .40VA Position: Favor Status: Vetoed 1. WATER SUPPLY AND LAND DEVELOPMENT 1.1 AB 2016 (Jones) Water supply assessments: groundwater Although enrolled by the Legislature, this bill was vetoed by the Governor. Existing law requires a city or county that determines a project is subject to CEQA to identify any public •,vvater system that may supply water for the project and to request those public water systems to prepare a water supply assessment. The Urban Water Management Planning Act requires urban water suppliers to prepare and adopt urban water management plans for submission to the Department of Water Resources. The act requires that if groundwater is identified as an existing or planned source of water available to the urban water supplier, that certain information be included in the plan. This bill would have required, where applicable, the identification of the amount of contaminated groundwater for which treatment capacity, remediation, or other water management options may need to be developed or expanded for the groundwater to be part of the planned water supply and the amount of contaminated groundwater for which management options currently exist to meet applicable regulatory standards for the proposed use. This bill would authorize the inclusion of contaminated groundwater that does not meet applicable regulatory standards for the proposed use without treatment, remediation or other management options as part of the planned supply, if the plan includes the specified elements. Additionally, the Subdivision Map Act requires the legislative body of a city or county or the advisory agency, to the extent that it is authorized by local ordinance to approve, conditionally approve, or disapprove a tentative map, to include as a condition in any tentative map that includes a subdivision a requirement that a sufficient water supply be available. The Subdivision Map Act authorizes the legislative body to request written verification of sufficient water supply, and, when uie written verification relies on projected water supplies that are not currentiy available to the public water system to provide a sufficient water supply to the subdivision, requires that the written verification as to those projected water supplies be based on prescribed elements. in vetoing the bill, the Governor recognized that "[r]elying on contaminated groundwater as a water supply source for new development is problematic, especially in the instance where no foreseeable 5 McCormick, Kidman & Behrens, LLP I L:GISL-1711.7: REPORT October 13, 2008 plans to clean up the groundwater exist. However, the Governor opined that complying with the requirements of this bill "may be nearly impossible." The Governor encourage the author to "to continue working with the stakeholders and my Administration on a solution that addresses this issue, without creating another means for litigation that could be abased solely to halt development projects throughout the state." ACWA Position: Watch Statzts: 1%etoed 1.2 AB 2219 (Parrs) Subdivisions: water supply This bill failed passage. This bill would have required, until January 1, 2016, the legislative body of a city or county or the designated advisory agency to approve or disapprove the subdivider's water savings projections attributable to voluntary demand management measures after being reviewed by the retail water supplier and verified for accuracy by the public water system or the local agency if there is no public water system. Water savings projections would have been calculated using the water savings projections adopted by the California Urban Water Conservation Council. Water savings projections for measures for which the California Urban Water Conservation Council does not have adopted findings would have been required to be based on substantial evidence in the record and included in the water supply assessment adopted by the water supplier. Ifa project applicant proposed to use a new voluntary water reduction demand management measure that is not based on water savings projections adopted by the California Urban Water Conservation Council, the legislative body of a city or county or the advisory agency would have been required to have the project applicant enter into an agreement with the water utility to implement and monitor the actual water savings over time, as specified. The public water system would have been required to prepare a written report of the projected water demand versus the actual water use 5 years after the project has been fully developed. This bill would have also required, until January 1, 2016, that any city, county, or public water system preparing a water supply assessment to reduce the projected water demand for the project to an amount below the current statutory and regulatory requirements, as defined, based on the project applicant's voluntary water demand management measures, as defined. Water savings projections would have been authorized to be calculated using the water savings projections adopted by the California Urban Water Conservation Council. Water savings projections for measures for which the California Urban Water Conservation Council does not have adopted findings would have been required to be based on substantial evruence in the record and Hicludeo in the water supply assessment adopted by the water supplier. If a project applicant proposed to use a new voluntary water reduction demand management measure that is not based on water savings projections adopted by the California Urban Water Conservation Council, the legislative body of a city or county or the advisory agency would have been required to have the project applicant enter into an agreement with the water utility to implement and monitor the actual water savings over time, as specified. The McCormick, Kidman & Behrens, L_*I-P LEGLST-,1771 'F Ri i~ox'r October 13, 2008 public water system would have been required to prepare a written report of the projected water demand versus the actual water use 5 years after the project has been fully developed. ACYVA Position: Walch Status: Dead I. WATER OUALITY/POLLUTION K. WATER RATES AND REVENUE PROCEDURES K.1 AB 2882 (Wolfe) Allocation-based conservation water pricing Existing law relative to water conservation programs authorizes any public entity that supplies water at retail or wholesale for the benefit of persons within the service area or area of jurisdiction of the public entity to adopt and enforce, by ordinance or resolution, a water conservation program to reduce the quantity of water used by those persons for the purpose of conserving the water supplies of the public entity. This bill authorizes a public entity to adopt allocation-based conservation waterpricing meeting that meets certain criteria. The bill requires that revenues derived from allocation-based conservation water pricing not exceed the reasonable cost of water service, including basic costs and incremental costs, as defined. ACPVA Position: Walch Status: Ch. 610 K.2 AB 3030 (Brownley) Local publicly owned water utility: rate cases, Prop. 218 Articles X1II C and XIII D of the California Constitution generally require that assessments, fees, and charges be submitted to property owners for approval or rejection after the provision of written notice and the holding of a public hearing. Proposition 218 sets forth the specific procedures and parameters for local jurisdictions to comply with Articles XIII C and X1II D. This bill authorizes an agency providing water, sewer, or refuse collection service to adopt a schedule of fees or charges that authorize automatic adjustments that pass through increases in wholesale charges for water or adjustments for inflation, if prescribed conditions are met, includin1. but not limited to, that the schedule of fees or charges not exceed a period of 5 years and that the schhedule be aUopt'tzu t)u,sualit to uxi~tiiig law provtoulg notice, protest, and hearing procedures for the levying of new or increased fees and charges by local government agencies. ,4C'PVA Position: Fa>>or Status: Ch. 611 McCormick, LEGISL-JT l,'E Ro)owj, L. ENVIRONMENTAL OUALITY AND ENDANGERED SPECIES October 13, 2008 L.1 AB 1017 (Ma) California Environmental Quality Act: appeal to local lead agency's elected decision-making body CEQA requires a lead agency to prepare or cause to be prepared, and certify the completion of. an EIR on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. This bill would have modified the procedures and timelines for bringing an appeal of a CEQA action taken by a non-elected decision making body. According to the Governor, "this bill is unnecessary because existing law already allows local elected officials to set their own deadlines for administrative appeals under CEQA" and "[i]mposing standard deadlines for the governance of administrative appeals without regard for variations in local conditions, caseload impacts and other practical considerations unnecessarily limits the discretion of local governments." ACWA Position: T41'atch Status: F"etocd M. SPECIFIC AGENCIES AND/OR PROJECTS M.1 AB 2823 (Eng) San Gabriel Basin Water Quality Authority This bill failed passage. This bill would have created the San Gabriel Basin Restoration Fund in the State Treasury. This bill would have required the Secretary for Environmental Protection to serve as the fund custodian. The moneys in the fund, upon appropriation by the Legislature to the Secretary for Environmental Protection for allocation to the San Gabriel Basin Water Quality Authority ("WQA"), would have been available for eligible projects that address groundwater contamination by means of remediation that may include treatment as part of the remediation process. This bill would have declared the intent of the Legislature that moneys not be appropriated from the General Fund to the newly created fund in years where there is a budget deficit. This bill would have authorized the moneys in the fund to be expended to meet the state share of the nonfederal matching fund requirements set forth under federal law. This bill would also have required that any funds recovered by WQA from responsible parties to be deposited in an account maintained by WQA to fund remediation consistent with its enabling act. K.i_rJman_ & Behrens, LLP 104/'.il Position: Favor Status: Dead Mc. Corrnic.k, Kidrnan C, BehrE,n-3; LI,P L.EGIS7_,1"I'I1"E Ri:i)owr --),,toterr 13, 2008 N. LAFCO N.1 AB 2484 (Caballero) Local government: special districts Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 defines "change oeorganization" to mean, among other things, a district formation, a consolidation of cities or special districts, or a merger or establishment of a subsidiary district. This bill includes within the definition of "change of organization" a proposal for the exercise of new or different functions or classes of services, or the divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district. This bill specifies that any such changes may only be initiated by the subject special district and will depend on the health of the district's revenues. If the local agency formation commission has determined that the special district will not have sufficient revenues to provide the proposed new or different functions or class of services, then the commission may condition its approval on the concurrent approval of sufficient revenue sources. In approving a proposal, the commission must provide that if the revenue sources are not approved, the authority ofthe special district to provide new or different functions or class of services must not be established. ICIT'A Position: Supporl Stulus: Ch 196 9 McCormick, Kicdman & 'hren:_~, i,1:P L FGISL.•1TI1'F. REI'O1Z7' October 13, 200c5 INDEX AB 642 (Wolk) .....3 AB 1017 (Ma) 8 AB 1858 (Jeffries) .....2 AB 1936 (Emmerson) .....3 AB 2002 (De Leon) .....4 AB 2046 (Jones) .....5 AB 2175 (Laird/Feuer) .....1 AB 2219 (Parra) 6 AB 2484 (Caballero) .....9 AB 2823 (Eng) 8 AB 2882 (Wolk) ....7 AB 3030 (Brownley) .....7 SB 1732 (Romero) ..............................................................................................................................2 10 ITEM NO. Ilk MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING November 10, 2008 Bob A meeting of the Yorba Linda Water District Finance-Accounting Committee was called to order by Director John W. Summerfield at 8:12 a.m. The meeting was held at the District's offices, 1717 E. Miraloma Ave, Placentia. DIRECTORS PRESENT: Director John W. Summerfield STAFF PRESENT: Ken Vecchiarelli, Assistant GM Diane Cyganik, Finance Director ACTION ITEMS: 1. Monthly Financial Statements for the first and second months of fiscal year 2008- 09 ending July 31 and August 31, 2008, respectively. The Financial Statements were reviewed by the Committee. It was recommended that the monthly Financial Statements for July 31, 2008 and August 31, 2008 be received and filed by the Board of Directors. DISCUSSION ITEMS: 2. Investment Report ending September 30, 2008. The Investment Report for month ending September 30, 2008 was discussed and accepted as presented. Director Summerfield raised the question as to why the Wells Fargo Checking accounts are not earning interest and whether or not it is possible to set up as a ZBA account that sweeps any money at the end of the day into a money market account. This is being investigated by staff and the findings will be reported back to the Committee. 3. Monthly Portfolio Report ending October 31, 2008. Report by Keith Khorey, Wells Capital Management. The Committee spoke with Keith Khorey by telephone and he gave a market summary and discussed the October Portfolio Report. In his market summary, Keith made the following points: the global economy is slowing down with conditions not experienced since the 1940's; a fourth quarter recession is very likely; unemployment rates hit 6'/z% for October but he felt that this seemed low. Keith presented a summary of the October Portfolio Report including the following highlights: the portfolio yield to maturity was at 2.62% which is 150 basis points above the Fed Funds Rate of 1.00; the District had an unrealized loss of $18,376 as of September 30, 2008 which turned around to become an unrealized gain of $15,014 as of October 31, 2008; several investments matured in October 2008; the monthly portfolio interest is much lower than it has been in the past since the portfolio is not as large as it used to be, and the interest rates have declined significantly. Currently, Wells Capital has a large percentage of the District's investments in very short-term commercial paper because of the market volatility and they will maintain this conservative approach until it is determined where the market is going. 4. Potential effects of CalPERS investment loss. The impact of the financial market downturn on CalPERS investments was briefly discussed by the Committee. While reports that CALPERS investments had lost over $46.513 during the current market downturn, it is still too early to determine the long term impacts. CalPERS rate stabilization policies help to spread market gains and losses over 15 years, cushioning the effects so no single year contribution change would be severe. However, if the CALPERS losses are realized, rates could increase by 2% to 4% in 2010 and 2011. ADJOURNMENT: The Committee adjourned at 8:58 a.m. The next Finance-Accounting Committee meeting will be held December 9, 2008. -2- ITEM NO. MA, MINUTES OF THE y~~u YORBA LINDA WATER DISTRICT GQ PERSONNEL-RISK MANAGEMENT COMMITTEE MEETING November 10, 2008 ,I/~~~ A meeting of the Personnel-Risk Management Committee was called to order by Chairman Paul Armstrong at 4:00 p.m. The meeting was held at the District Administrative Office at 1717 E. Miraloma Ave, Placentia. COMMITTEE: Director Paul Armstrong, Chair Director Ric Collett STAFF: Ken Vecchiarelli, Asst. General Mgr. Gina Knight, Human Resources Mgr. INTRODUCTION OF VISITORS AND PUBLIC COMMENTS: None ACTION ITEMS: 1. None. DISCUSSION ITEMS: 2. Present Draft Employee-Employer Relations Resolution. The Committee reviewed and discussed the draft Employee-Employer Relations Resolution presented by Ms. Knight. 3. Status of CalPACS Salary Survey. Staff gave an update on the status of the survey in progress. The Committee members suggested this survey be completed for review by December 1, 2008 with recommendations for Board approval tentatively on December 11, 2008. 4. Status of Recruitments. Staff gave an update on recruitments. 5. Status of Personnel on Administrative Leave. Staff reported on personnel on administrative leave. 6. Status of Risk Management Activities. Staff reported no activity on risk management claims. 7. Pre-employment Drug Testing Requirements. Staff reported on case law regarding pre-employment drug testing for safety sensitive positions only. Staff is reviewing current District policy. ADJOURNMENT: The Committee adjourned at 5:15 p.m. The next Personnel-Risk Management Committee meeting will be held December 1, 2008. APPROVED BY THE BOARD OF DIRECTORS ITEM NO. OF THE YORBA LINDA WATER DISTRICT NOV 1 2 2008 MINUTES OF THE I YORBA LINDA WATER DISTRICT BY 0 PLANNING-ENGINEERING-OPERATIONS COMMITTEE MEETING November 6, 2008 A meeting of the Planning-Engineering-Operations Committee was called to order by Committee Chair Mills on Thursday November 6, at 4:00 p.m. The meeting was held at the District Administrative Office at 1717 E. Miraloma Ave, Placentia. DIRECTORS PRESENT: STAFF PRESENT: Director William R. Mills, Chair Ken Vecchiarelli, Asst.General Manager Director Paul R. Armstrong Ken Mendum, Operations Superintendent Steve Conklin, Consulting Sr. Project Mgr. INTRODUCTION OF VISITORS AND PUBLIC COMMENTS: None. ACTION ITEMS: None. DISCUSSION ITEMS: 2. Monthly Groundwater Production and Purchased Water Report Mr. Vecchiarelli reported on the monthly and year-to-date groundwater production and purchased import water totals. He noted that the year-to-date groundwater production percentage has increased to 59.4%, which is almost at the annual goal of 60%, including CUP flow. Director Mills suggested that staff look at including the 3-year water trend and the monthly average mean temperature in the summary data. 3. Monthly Preventative Maintenance Program Report Mr. Mendum presented a status report on the monthly preventative maintenance program. Mr. Mendum also reported that "dead-end" lines are drained twice yearly of water that is not circulated and loses its chlorine residual. The amount of water drained is minimized by staff monitoring the chlorine residual concentration. That is, water is drained and monitored until such a time that a chlorine residual is noted, at which time the outflow is stopped. He noted that the quantity of water discharged to the gutter and the storm drain is small, depending on the distance back to the last water service and the size of the pipeline. A discussion followed on the importance of conserving the water for public perception, and various means to collect the water for reuse. Messrs. Vecchiarelli and Mendum said that they will investigate options for collection and reuse, and report back to the Committee. 4. Monthly MWDOC Managers Meeting Summary Report Mr. Vecchiarelli attended the meeting held October 23, 2008 and gave a brief summary report. 5. Monthly OC Groundwater Producers Meeting Summary Report Messrs. Vecchiarelli and DeCriscio both attended the meeting held October 8, 2008. Mr. Vecchiarelli gave a brief report and noted that there was a discussion at the meeting on the pros and cons of purchasing full-cost Met treated water for groundwater recharge. In the end, the decision of OCWD was not to purchase the water and to reconsider the need in May 2009. 6. Status Report on Capital Projects in Progress Mr. Vecchiarelli noted that staff has developed a Capital Improvement Projects Status Report to more fully apprise the Directors of project status. Copies of the report were handed out to the Committee members. It was noted that the report is a work in progress and that comments and suggestions for improvements are welcomed. Mr. Conklin presented the report on the capital projects in progress. Various project issues were highlighted and discussed with the Committee regarding projects in construction, in design, and in planning. Mr. Vecchiarelli noted that staff plans to update the report monthly and include it in the package provided to the PEO Committee prior to the meeting and provide quarterly reports to the full Board of Directors. 7. Discuss Cost Accounting Synopsis for Street Construction on Richfield Road and Miraloma Avenue Mr. Vecchiarelli reported that he has been in contact with City of Placentia staff regarding final cost accounting for the street construction progress. ADJOURNMENT: The Committee adjourned at 5:40 p.m. The next Planning-Engineering-Operations Committee meeting will be held December 4, 2008, 4:00 p.m. 2 ITEM NO. 11r- APPROVED BY THE BOARD OF OIRECORS OF THE YORBA LINDA WATER DISTRICT MINUTES OF THE NOV 1 2 2008 YORBA LINDA WATER DISTRICT and MUNICIPAL WATER DISTRICT OF ORANGE COUNTY AD HOC COMMITTEE MEETING BY October 28, 2008 A meeting of the Yorba Linda Water District and Municipal Water District of Orange County Ad Hoc Committee meeting was called to order by Committee Chair William R. Mills at 4:00 p.m. The meeting was held at the District offices at 1717 East Miraloma Ave., Placentia. YLWD COMMITTEE MEMBERS PRESENT: William R. Mills, Chair Ric Collett, Director YLWD STAFF PRESENT: Michael A. Payne, General Manager Kenneth R. Vecchiarelli, Asst. Gen. Mgr. MWDOC COMMITTEE MEMBERS PRESENT: Brett Barbre, Director OCWD INVITED ATTENDEES: Roger Yoh, Director Mike Markus, General Manager MWDOC STAFF PRESENT: Kevin Hunt, General Manager INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:, There were no visitors or public comments. DISCUSSION 1. Discuss MWD/MWDOC Supply Allocation Plan The Committee discussed the latest information received from MWD. MWD is still analyzing the water supply situation in the State and on the Colorado River and has yet to make a final decision on water supply allocation. MWDOC stated they would keep member agencies informed as information is received. It is anticipated that July 1, 2009 is still the target. 2. Discuss Current Water Supply Situation The Committee discussed the latest information on the water supply in California. Mr. Markus gave a report on the groundwater levels within the OC basin. The basin is dropping. Mr. Payne expressed his disappointment with So California Water Agencies in general for not adopting a common theme in regards to the drought. 3. Discuss SB/XX and Implementation for Local Agencies The Committee received an update on SB/XX and implementation for local agencies. Mr. Hunt explained the State is ready to begin dispersing Proposition 84 funds. MWDOC has agreed to assist YLWD with the application process. 4. Discuss Status of Dana Point De-Salter Project Mr. Hunt gave a report on the Dana Point De-Salter Project. There are tours being scheduled to view the test drilling activities. The following five agencies have signed up to fund the project: Moulton Nigel Water District, South Coast Water District and the cities of San Clemente, San Juan Capistrano and Laguna Beach. 5. Discuss AB 1400 (Hayashi) The Committee discussed the actions taken by MWDOC in addressing the allegations by Santa Margarita Water District about proposed legislation. 6. Discuss Status of Bryant Ranch Non-Potable Irrigation Project The Committee discussed the status of the Bryant Ranch Non-Potable Irrigation Project. Mr. Payne summarized where the District was in regard to the preliminary study of the project. All agencies thought it had merit and that possible grants were available to help with the funding of this new water project. Mr. Markus and Mr. Yoh felt it was time to meet again to discuss annexation since the study was almost complete. A meeting will be set up. The Committee thanked Director Yoh and General Manager Markus for attending the meeting. ADJOURNMENT The committee adjourned at 5:23 p.m. The next YLWD-MWDOC Ad Hoc Committee will be rescheduled due to the upcoming holiday. ITEM NO. MINUTES OF THE YORBA LINDA WATER DISTICT and CITY OF PLACENTIA ' AD HOC COMMITTEE MEETING A"6." November 7, 2008 4tD C4 O.;, The November 7, 2008 meeting of the Yorba Linda Water District and City of Placentia Ad Hoc Committee was called to order by Director Beverage at 10:05 a.m. The meeting was held at the District's offices at 1717 E. Miraloma Avenue, Placentia, CA. YLWD COMMITTEE MEMBERS PRESENT: YLWD STAFF PRESENT: Michael J. Beverage, Director Michael A. Payne, General Manager CITY OF PLACENTIA STAFF PRESENT: Troy Butzlaff, City Administrator Steve Drinovsky, Public Works Manager CITY OF PLACENTIA COMMITTEE MEMBERS: Scott W. Nelson, Mayor of the City of Placentia INTRODUCTION OF VISITORS AND PUBLIC COMMENTS: There were no visitors. DISCUSSION ITEMS Discuss 2009 Water Rates The Committee discussed the issue of a proposed water rate increase in December. MWD, MWDOC, OCWD and SCE have either approved or will approve rate increases to local water agencies in Orange County. Director Beverage reported the issue of pass through rate increases was discussed with the Board of Directors in December of 2007 and again on October 30, 2008. The public hearing will be in December 2008 with any rate increase effective January 1, 2009. District staff also provided details of a proposed rate increase by Golden State Water Company. The city reported on certain actions they are taking to conserve water. 2. Discuss Potential Water and Sewer Reliability Study within YLWD and City of Placentia Boundaries The Committee discussed the issue of conducting a Water and Sewer Reliability Study within the City of Placentia Boundaries. The issue of sewer facilities and sewer maintenance was also discussed. The city is also looking at water reliability. 3. Discuss YLWD and City of Placentia 2009 Goals The Committee discussed having the staffs of both agencies explore ways to jointly reduce costs to the residents. This would include employee sharing, equipment sharing and other services. The issue of coordinating capital projects will also be discussed in the staff meeting. The Committee adjourned at 11:20 a.m. The date of the next Yorba Linda Water District and City of Placentia Ad Hoc Committee meeting will be determined. 2 ITEM NO. ACWA Joint Powers Insurance Authority Preliminary 2008 Fall Conference Schedule Long Beach Convention & Entertainment Center Long Beach, CA Monday - December 1, 2008 7:30 a.m. - Finance & Audit Committee meeting (tentative) 8:45 a.m. 9 a.m. - Risk Management Subcommittee meeting 10:15 a.m. 10:30 a.m. - Executive Committee meeting 11:45 a.m. 1:15 p.m. -Town Hall meeting 2:30 p.m. 3:00 p.m. - Board of Directors' meeting 5:00 p.m. 5:00 p.m. - Board of Directors' reception 6:00 p.m. Tuesday - December 2, 2008 8:30 a.m. - Rolling With the Punches: Communication Tools 10:30 a.m. For a Pressure-Driven World! Presenter: To be determined APPROVED BY THE BOARD JF DIRECTORS OFTHE YORBA LINDA WATER OISTRICT NO V 1 2 2008 BY 41 10:45 a.m. - JPIA - Insurance and So Much More 11:45 a.m. Presenter: Walter "Andy" Sells JPIA's Chief Financial & Operations Officer 1:30 p.m. - Sexual Harassment Prevention for Board 3:30 p.m. Members and Managers (AB1825) Presenter: Nancy Stangel JPIA's Director of Administration ITEM NO. 1 3 APPROVED BY THE BOARD OF OIRECTOHS THE ORANGE COUNTY WATER ASSOCIATION OF THE YORBA LINDA WATER DISTRICT cordially invites you and your guests to the NOV 1 2 2008 51s' Anniversary ~Po BY CHRISTMAS AND HOLIDA Y DINNER DANCE § Friday, December 12, 2008 Irvine Marriott, 18000 Von Karman, Irvine 7 COCKTAILS • 8p. n2. - DINNER AND DANCING /-rice: $70 per person, $700 table of ten ~r SIDI, FDIC' TICI 7AND S IONS(JRSHIN I,j'/ r. y Diamond Sponsors AECOM • HDR Engineering, Inc. * Stantec Platinum Sponsors Lee Ro, Inc. • Psomas + RBF Consulting • SA Associates + Tetra. 1ecb, Inc. Gold Sponsor Kennedy/Jenks Consultants • Riebard C. Slade 6' Associate., Silver Sponsors DYKlncoiporated • Genterra Consultants, Inc. Geoscience Support Services, Inc. • Mainline Sales Sponsorship opportunities are still available! lake checks for tickets and sponsorships payable to OCWA. Send to: AECOM, Attn: Bonnie Thornton, 1501 Quail Street, rt Beach, CA 92660 • Questions: call (949) 476-3.312 Please bring an unwrapped gift for the children at the Human Options Shelter 7PP7 6A, WATER EDUCATION FOUNDATION 717 K Street, Suite 317 Sacramento, CA 95814 Phone: 916-444-6240 Fax: 916.448-7699 www.watereducation.org PRESIDENT William R. Mills Groundwater Consulting Engineer VICE-PRESIDENT Suzanne Redfem-West Redfern Ranches, Inc. SECRETARY Gary Weatherford Weatherford & Taaffe, LLP TREASURER Donald Evenscn MWH EXECUTIVE DIRECTOR Rita Schmidt Sudman Water Education Folmdanon DIRECTORS: John Algots Fort Mojave Indian Tribe Thaddeus L. Bettner Glenn-Colusa Irrigation District Celeste Cantri Santa Ana Watershed Project Association Huali Chai Law Office of Huali G. Chai Dennis Diemer East Bay Municipal Utility District Daniel M. Dooley University of Califomia Phil Dunn EDAW, Inc. Harrison C. "Hap" Dunning The Bay Institute of San Francisco Jim English Black & Veatch Charolette Fox Rlversi de League of Women Voters Kathy E. Freas CH2M Hill Edward G' "Jerry" Gladbach Cast- Lake Water Agency David J' Guy Yosemite Association Katharine L. Jacobs Arizona Water Institute Jonas Minton Planning & Conservation League Scott A. Morris Kronick, Moskovitz, Tiedemann & Girard David Orth Kings River Conservation District Timothy H. Quinn ACWA Ronald B. Robie Co-of Appeal, 3rd Appellate District Anthony Saracino The Nature Conservancy Michael T. Savage Camp Dresser & Mckee Satore, "Sat" T marihuchi The Irvine Company John E. Thorson California Public Utilities Commission Linda Waade M W D of Southern California Dave L. Widell Grassland Water District ITEM NO.1-3e October 20, 2008 Michael Payne Yorba Linda Water PO Box 309 f Yorba Li da, CA 9' Dear ' ha APPROVED BY THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT Nov t 2 2008 BY The Wate, Education Foundation would like to offer to our major contributors a special reduced rate of $125 to the upcoming Climate Change Summit. The 2008 Climate Change Summit will be held in Long Beach, California on November 13 & 14, 2008. The 1'/2 day conference is co-sponsored by the California Department of Water Resources, Water Education Foundation, California State Association of Counties, and League of California Cities. The 2008 Climate Change Summit will bring together top experts from local water agencies, cities, state government, and those in the water community connected with state and federal water systems, to discuss the effects of climate change and adaptation on California's water management. We have attached a working agenda for your review and a registration brochure. Please note that your registration includes all materials, continental breakfasts, lunch and an evening reception. Please distribute the enclosed flyers. ` To learn more about the Summit and register online, the direct link is www. watereducation. org/briefings. asp We look forward to seeing you there! XSincer y, hmidt Sudman Executive Director Enclosures: Agenda Registration Brochure 0 C T -9 3 2008 Walter Yep Welter Yep, Inc. William R. Gianelli Presidem Emeritus The mission of the Water Education Foundation, an impartial, nonprofit organization, is to create a better understanding of water issues and help resolve water resource problems through educational programs. DRAFT California Climate Change and Water Adaptation Summit Sponsored by California Department of Water Resources Water Education Foundation Co-sponsored by California League of Cities November 13-14,2008 Hilton Hotel, Two World Trade Center, Long Beach, CA DAY 1 8:00 Registration 9:00 Welcome and Opening Remarks Rita Schmidt Sudman, Executive Director, Water Education Foundation (confirmed) Lester Snow, Director, California Department of Water Resources (confirmed) Bob Foster, Mayor, City of Long Beach (confirmed) 9:30 Adaptation and Management Climate Change in Congress and the Western Governors'Association's Response Tony Willardson, Deputy Director - Western States Water Council (invited) Resources Agency Adaptation Program Tony Brunello, Deputy Secretary for Climate Change and Energy, California Resources Agency (confirmed) Regional Climate Model Development Jim Hurrell, Senior Scientist, National Center for Atmospheric Research (invited) Managing Risk and Uncertainty from an Economic Standpoint Michael Hanemann, Chancellor's Professor, Department of Agricultural & Resource Economics, University of California, Berkeley (confirmed) Department of Fish and Game Adaptation Plans Amber Pairis, Climate Change Advisor, Department offish & Game (invited) Moderator: Jeanine Jones, Interstate Resources Manager, DWR (confirmed) D f.Z Al -I I " 11:00 Hydrologic Risks - How Do We Assess Them? What the Past Tells Us - Natural Variability and Drought in the Paleoclimate Record David Meko, Associate Professor, University of Arizona (invited) Limitations of Present Weather and Climate Predictions Katharine Jacobs, Executive Director, Arizona Water Institute (confirmed) Scenarios and Future Impacts: Looking Ahead to the So IPCC Assessment Jonathan Overpeck, Director, Department of Geosciences Environmental Studies Laboratory, University of Arizona (invited) Moderator: Elissa Lynn, Senior Meteorologist, DWR (confirmed) 12:00 Lunch Decision-making in a Changing Environment TBD, California Department of Justice (invited) 1:30 Sea Level Rise: A Major Science Uncertainty Are Observed Changes Exceeding Expectations? Mark Serreze, Cooperative Institute for Research in Environmental Sciences (CIRES) (invited) Robert Correll, Senior Policy Advisor, American Meteorological Society (invited) The Unknowns of Ice Sheet Dynamics Robert Bindschadler, Chief Scientist, Hydrospheric and Biospheric Sciences Laboratory, NASA (confirmed) Managing Sea Level Rise Uncertainties in Washington State Phil Mote, Assistant Professor, Climate Impacts Group, University of Washington (confirmed) Moderator: Jeanine Jones, Interstate Resources Manager, DWR (confirmed) 3:45 Break 4:00 Too Much Water, Too Fast Flood Management Challenge Building Flood Plans into City General Plans Terry Rivasplata, Senior Environmental Planner, ICF Jones & Stokes (confirmed) More Frequent and Bigger Floods? Saroosh Sarooshian, Professor, University of California, Irvine (invited) U.S. Army Corps of Engineers Reallocation Study Stu Townsley, Chief, Water Management, U.S Army Corps of Engineers (confirmed) FloodSAFE Strategic Plan Ken Kirby, Principal, Kirby Consulting Group (confirmed) Moderator: Arthur Hinojosa, Chief, Hydrology Branch, DWR (confirmed) 5:30 Evening Cocktail Reception Presentation of awards for best science papers in 2007-2008 Reception sponsored by: Sponsor TBD DAY 2 8:00 Continental Breakfast 8:30 Impacts of Near-Term Climate Variability - Implementing the Governor's Executive Order on Drought Conservation Manucher Alemi, Chief, Data Services & Program Development Branch, Ofjtce of Water Use Efficiency & Transfers, DWR (confirmed) Water Transfers Teresa Geimer, Chief, Water Supply & Transfers Branch, DWR (confirmed) Assistance for Agriculture Al Vargas, Office of Agriculture and Environmental Stewardship, California Department of Food & Agriculture (confirmed) Public Education and Outreach Jennifer Persike, Director of Communications & Outreach, ACWA (confirmed) Moderator: Rita Schmidt Sudman, Executive Director, Water Education Foundation 9:30 Preparing for a Dry 2009 Weather Outlook for 2009 Elissa Lynn, Senior Meteorologist, DWR (confirmed) Colorado River Operations for 2009 Jerry Zimmerman, Executive Director, Colorado River Board of California (invited) State Water Project Operations for 2009 John Leahigh, SWP Operations, DWR (confirmed) Central Valley Project Operations for 2009 Don Glaser, Mid-Pacific Regional Director, Bureau of Reclamation (confirmed) Moderator: Rita Sudman, Executive Director, Water Education Foundation 10:45 Incorporating Climate Change in Local Planning for the Future Present California Studies on Sea Level Rise Dan Cayan, Researcher, Scripps Institute of Oceanography, University of California, San Diego (confirmed) The Integrated Regional Management Opportunity: A Southern CA Example Stephen Arakawa, Group Manager, Water Resource Group, Metropolitan Water District (confirmed) Sustainable Cities Yvonne Hunter, Program Director, California Climate Action Network (confirmed) DRAFT Floodplain Management - Alluvial Flood Plain Task Force Example Susan Lien Longville, Director, Water Resources Institute, Cal State University, San Bernardino (confirmed) Saving Water, Saving Energy Rich Atwater, CEO/General Manager Inland Empire Utilities Agency (confirmed) Moderator: Mark Cowin, Deputy Director, Regional Water Planning & Management, DWR (confirmed) 11:45 Closing Remarks from Lester $now 12:00 Adjourn Phis day and a half summit will bring together top experts from local water agencies, cities, state government, and those in the water community connected with state and federal water systems, to discuss the effects of climate change and adaptation on California's water management. The summit will address the challenges and opportunities facing California in the development of water policies in the face of climate change. Registration for this 1-1/2 day event is $250 Fee includes materials, continental breakfasts, and lunch and evening reception Nov. 13. Scholarships are available. Contact the Foundation for more information on scholarship qualifications. Check in will begin at 8:00 a.m. and the program will begin at 9:00 a.m. on Nov. 13. The Summit will adjourn at noon on Nov. 14. Complimentary Foundation and other materials will be distributed to participants. Name(s) Title(s) Organization Address The interest in diSCIISSing 21dnptive measures for an iricivasingly variable future has bcconie more urgent as ifornia faces its second consecutive dry year, lending the governor to declare a statewide drought. The existing water system in California was planned and built before climate change scenarios were considered, h)r thotie working in the water community in C',ilifornia, the summit Will provide an opportunity to discuss and debate the impact ('limo[('change will have, and how best to hnndlc tho risks and uncertainties of water resource n1anagcrnent. Participants in the Climate Change Summit will have the opportunity to discuss pending federal le};islatioil, hear about development of regional climate clruige models, learn shout variocis,risk mmiagenuont tools that they can use in their own work, and find out about the extensive efforts unlerway to incorporate planning for climate Change into state Mid local water management policies. Summit. Topics Include: > Adaptation and Mnngemcnt > Assessing I lydrologic Risks > Incorporating Flood Planning Into Cities' Ceneral Plans > Sca 1.evc'1 kiss Preparing fora I)ry 2001) City State Zip Email Phone Lunch choice: ❑ Vegetarian ❑ Non-vegetarian ❑ Enclosed is my $250 registration fee (Scholarships are available. For details, contact the Water Education Foundation) ❑ Mastercard ❑ Visa ❑ American Express Purchase order # Credit card number Exp. date Signature (must be signed to process credit card order) Please return with payment to: Water Education Foundation, 717 K Street Suite 317, Sacramento, CA 95814 Phone (916) 444-6240 • Fax (916) 448-7699 Registration On-line registration is available at www.watereducation.org Faxed reservations will be accepted with purchase orders or credit cards. Cost Allocation Proposal (need to update) 9/3/2008 Budget Based Tiered Rate Proposal Cost Allocation Average �V Component Water Budget Cost Billing System Assessment Development GIs Total Assumptions: $ 60,000 $ 75,000 $ 10,000 $145,000 ($30,000 for just software) Agency Percen ge of Grant Contribution Contribution rant Member Agency Level of Particaption Consultant Costs(1) (3) Cash(2) ntribution Cash In-kind(4) Labor In-kind(5) Local Match Total Garden Grove Full participation $ 145,000 $ 80,148 $ 64,852 55% $ 29,015 $ 50,000 $ 143,867 $ 224,015 Buena Park Full participation 145,000 80,148 $ 64,852 55% 56,680 100,000 221,532 301,680 Yorba Linda Rate Model+GIS 85,000 46,983 $ 38,017 55% 90,000 25,000 153,017 200,000 Laguna Beach Full participation 140,000 77,384 $ 62,616 55% - 100,000 162,616 240,000 SCWD Full participation 140,000 77,384 $ 62,616 55% 100,000 162,616 240,000 El Toro WD Full participation 140,000 77,384 $ 62,616 55% - 50,000 112,616 190,000 Huntington Beach Full participation 157,000 86,781 $ 70,219 55% 65,000 50,000 185,219 272,000 Moulton Niguel Rate Model+GIS 93,000 51,405 $ 41,595 55% 35,000 100,000 176,595 228,000 Tustin Full participation 140,000 77,384 $ 62,616 55% - 50,000 112,616 190,000 Trabuco Canyon Software Analysis 30,000 20,000 10,000 67% 100,000 - 110,000 130,000 SMWD GIS 10,000 10,000 - 100% - 100,000 100,000 110,000 MWDOC N/A 65,000 1 65,000 65,000 Total I $ 1,225,000 $ 685,000 $ 540,000 $ 440,695 $ 725,000 1 $ 1,705,695 $ 2,390,695 (1) Assumes: Four small agencies are$5,000 less expensive(Laguna Beach,South Coast,El Toro and Tustin);two largest agencies are$12,000 and$8,000 more (Huntington Beach and Moulton Niguel).MNWD is not doing the software and hardware. 71% (2) Calculation to raise$530,000 proportionally over all agencies by the consultant costs except Trabuco and SMWD. Local Match Trabuco and SMWD are plugged numbers. (3) Difference between Agency Consultant Costs and Grant amount. (4)Outside costs for work already planned beyond what is included in this grant (5) Estimated agency hours;1000 hours at$50 per hour=$50,000;doubled for agencies going fully into implementation. Department of Water Resources 2008 Urban Drought Assistance Grant Program Budget Based Rates in Orange County for Water Management and Droughts N'C WATER Karl Seckel OF DISTRICT Municipal Water District ORANGE of Orange Count COUNTY g y Sanjay Gaur ff Red Oak Consulting, a CONSULTING Division of Malcolm Pirnie, Inc. Summary In July 2008 , MWDOC (and 11 of its agencies) applied fora $685 , 000 grant from DWR's Urban Drought Assistance Grant Program Funds will help evaluate and implement water budgets Implementation is not required MUNICIPAL WATER 0 STRICT OF REFDAK 2 CONSULTING What are budget based tiered rates? Water budgets are developed for each individual customer: ■ Interior needs ■ Irrigation needs ■ Commercial , industrial , institutional usage 9 There are many ways to implement ■ Irrigation component can change based on climate info ■ Can be used as a guide to compare MUNICIPAL ,Cr ORANGE against current g st cu ent usage COUNTY ij CONSULTING Why should we look at budget based rates? Deteriorating water supply situation in California ■ Conservation can be accomplished quicker than bringing new supply projects ■ Proven savings of 20%± Grand Jury Report Water conservation equity concerns Revenue stability MUNICIPAL WATER Better management of resources "T REHDAK 4 Assists with drought responses — we are in a "new era" ; water budgets are non- Draconian Good for public relations Improves communication and interface with customers ■ Tailored responses for water use efficiency interventions ■Targets and places burden on the inefficient users MUNICIPAL WATER DISTRICT OF ORANGE COUNTY Are budget based tiered rates perfect? May be costly — that is what we want to find out in this evaluation phase ■ It takes time, effort and resources It is not for every community — you need the political will to be successful ■ Examples include: • IRWD • San Juan Capistrano • San Clemente Inefficient water users may not be happy MUNICIPAL,C. REMAK r- Other Potential Obstacles to Success Data needs Adopted policy on "cost of service" principles specific to agency Billing system with flexibility to handle budget based rates Legally defensible rates — Prop 218 compliance Pre-implementation outreach On-going customer support DISTRICT OF ORANGE COUNTY REMAK CONSULTING MWDOC Grant Proposal Realized savings via joint submittal ■ Vest work in 1 or 2 consultants — economy of scale ■ Capture staff time from agencies to maximize local contribution amount ■ Seek DWR funds to reduce local agency costs Benefit from collaboration with other agencies to ensure best end product ER - oAO�� COUNTY ULDAK CONSULTING Project deliverables are customized for each retail agency ■Technical ■ Financial ■ Political ■ Implementable Develop estimates of irrigable area for all parcels in the County — great economy of scale Downside to the proposal of working with so many agencies is some loss of DISTRICT OF flexibility by individual agencies 0 R"M RERDAK CONSULTING Retail Agency Benefits Rate structure design and analysis at discount: ■Approximate 50% discount on consulting work ■ Better product with collaboration No requirement to move forward ■ Final decision rests with Board or Council ■ Implementation options exist • Simple comparison of actual billed amounts to budget amounts • Drought allocation mechanism • Full implementation J10 MUNICIPAL Aar COU • Run in parallel with existing structure REHDAK CONSULTING Cost Allocation Proposal (need to update) Budget Based Tiered Rate Proposal Cost Allocation Average Component water Budget Cost Billing System Assessment Development GIS Total Assumptions: $ 60,000 $ 75,000 5 10,000 $145,000 ($30,000 for just software) Agency Percentage of Cash for Laborfor Consultant Grant Contribution Grant Labor In-kind Related Related Member Agency Level of Particaption Costs(1) Contribution(3) Cash(2) Contribution (5) Related Efforts Efforts Efforts Local Match Total Garden Grove GIS $ 10,000 $ 10,000 $ - 100% $ 5,000 None $ - $ - $ 5,000 $ 15,000 Buena Park Full participation 145,000 85,682 $ 59,318 S9% 20,000 Financial Model by others 75,000 30,000 $ 184,318 $ 270,000 Yorba Linda Rate Model+GIS 85,000 50,227 $ 34,773 59% 20,000 Hardware System 90,000 40,000 $ 184,773 $ 235,000 Laguna Beach Semi-Full participation 80,000 47,273 $ 32,727 59% 20,000 None - $ 52,727 $ 100,000 SCWD Semi-Full participation 80,000 47,273 $ 32,727 59% 20,000 Rate Model Update 40,000 20,000 $ 112,727 $ 160,000 El Toro WD Full participation 145,000 85,682 $ 59,318 59% 20,000 None - - $ 79,318 $ 165,000 Huntington Beach Full participation 145,000 85,682 $ 59,318 59% 30,000 Sewer model,rate model 65,000 40,000 $ 194,318 $ 280,000 Moulton Niguel Rate Model+GIS 85,000 50,227 $ 34,773 59% 30,000 Sewer model,IS Master Plan 125,000 30,000 $ 219,773 $ 270,000 Tustin Full participation 145,000 85,682 $ 59,318 59% 1 30,000 None - $ 89,318 $ 175,000 Trabuco Canyon Semi-Full Participation 80,000 47,273 $ 32,727 59% 20,000 None - - $ 52,727 $ 100,000 SMWD GIS 10,000 10,000 $ - 100% 5,000 Rate Model Update 100,000 20,000 $ 125,000 $ 135,000 Newport Beach GIS 10,000 10,000 $ - 100% 5,000 Rate Model by Others 100,000 20,000 $ 125,000 $ 135,000 MWDOC N/A 20,000 - 20,000 65,000 None $ 85,000 $ 85,000 Total $ 1,040,000 1 $ 615,000 1 $ 425,000 1 1 $ 290,000 1 595,000 1 $ 200,000 $ 1,510,000 $ 2,125,000 Local Match Need to get to 71% 71.1% $ (1,250) (1) Assumes: Four small agencies are$5,000 less expensive(Laguna Beach,South Coast,El Toro and Tustin);two largest agencies are$12,000 and$8,000 more(Huntington Beach and Moulton Niguel).MNWD is not doing the software and hardware. (2) Calculation to raise$530,000 proportionally over all agencies by the consultant costs except Trabuco and SMWD. Trabuco and SMWD are plugged numbers. (3) Difference between Agency Consultant Costs and Grant amount. (4)Outside costs for work already planned beyond what is included in this grant (S) Estimated agency hours;1000 hours at$50 per hour=$50,000;doubled for agencies going fully into implementation. MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ID) . Step 1 = Revenue Requirements General workshop on how to determine 5- year revenue requirements ■ Revenue requirements are the annual cash requirements for water agency operations and capital replacement ■ Must meet agency's cash flow needs, debt coverage ratio and reserve requirements MUNICIPAL WATER DISTRICT OF ORANGE -- - - COUNTY RF13DAK CONSUtTING Step 2 - Cost-of-Service Analysis General workshop on how to conduct a cost-of-service analysis ■ Allocation of cash requirements based on the causation principle ■ Other options • Requirements of Proposition 218 and Government Code Section 54999 MUNICIPAL WATER DISTRICT OF ' ORANGE -- - -- COUNTY RERDAK 13 CONSULTING ' Ste p -3 Irrigable Area for Each Parcel Digital Map Products • Utilize Assessor's Parcel Info • Utilize G I S Infrared overlay with Assessor's Parcel Maps to develop an estimate of "irrigable area" for each parcel • Provide options for determination of "irrigable area" • Web-based database provided to each agency • Each agency is responsible for integrating into their billing system MUNICIPAL WATER DISTRICT OF _ ORANGE COUNTY R-EBDAK S CONSULTING Step 4 - Water Budget Rate Structure Policy Options General workshop — Discuss policy issues associated with the development of a water budget rate structure Individual workshop - Customize the policies associated with water budgets ■ Allocation factors for indoor and outdoor water use ■ Number of tiers ■ Variance program • Other MUNICIPAL WATER DISTRICT OF ORANGE COUNTY RFIVAK 15 CONSULTING Step 5 = Database Development Each agency will develop their own database : ■ Appropriate allocation factors developed for each account using : • Parcel data from Step 3 • Policies from Step 4 MUNICIPAL WATER DISTRICT OF ORANGE COUNTY REIDAK 16 CONSMING Step 6 - Analytical Model Development & Testing Red Oak will develop an analytical tool that will use each agency's database The model will have the ability to perform : ■ Fixed/variable revenue adjustments ■ Fixed/variable rate calculations ■ Water budget allocation scenario analysis ■ Revenue analysis ■ Allocation of fixed fee based on different meter equivalency factors ■ Typical monthly bill comparison MUNICIPAL WATER Rate ramifications DISTRICT OF _ ORANGE COUNTY R I1' . CONSULTING S to p 7 = Billing and Accounting S Needs & Options Red Oak will : • Assess current customer service and billing practices • Assess information s Y stems used for Customer Information S stem/Billi n Y g • Conduct Fit/Ga p analysis sis • Develop Recommendations for either a change in procedures or systems with suggested tasks, schedule, and estimated resource needs. • Hardware • Software MUNICIPAL WATER • Provide a report to each retail agency for its use �AN�E -- - COUNTY REEDAK Step 8 - Outreach for Implementation If REQUIRED Assistance in the development of generalized information for use by each agency ■ Main goal of this task is to educate the public on the benefits associated with water budgets and how they function ■ Individual agencies will develop specific outreach materials MUNICIPAL WATER OF TRICT ORANGE COUNTY REMAK 1 CONSULTING Ste p =9 Implementation If REQUIRED Facilitation of rate workshops with key stakeholders to refine the proper water budget rate structure ■ The workshops will utilize the water budget model Public presentations to Boards and Councils on the proposed water budget rate structure Individual agencies are responsible for all implementation phases including : • Proposition 218 compliance • Customer support • Public involvement WATERIPA` DISTRICT OF " ORANGE COUNTY REBDAK CONSUMNG Final Reports Individual agency reports will : • Summarize the activities, findings and conclusions for each agency • Discuss the individual budget allocations • Forecast expected savings to be achieved • Finalize reports with DWR to fulfill the requirements of the Grant Program MUNICIPAL WATER DISTRICT OF ORANGE COUNTY R B' . CONSULTING <:, t Monitoring and Evaluation Red Oak will develop a template for each retail agency to use to monitor the actual savings from this project Each retail agency will be responsible for: • Collecting the data • Conducting the analysis • Provide this information to MWDOC MWDOC staff will compile and send to DWR MUNICIPAL WATER #1 OF ORANGE COUNTY REBDAK {>z CONSULTING Questions/Discussion MUNICIPAL WATER DISTRICT OF ORANGE COUNTY IAK JSULTING