HomeMy WebLinkAbout2008-01-15 - Executive-Administrative-Organizational Committee Meeting Agenda PacketW ~
YORBA LINDA WATER DISTRICT
EXECUTIVE-ADMINISTRATIVE-ORGANIZATIONAL COMMITTEE MEETING
Tuesday, January 15, 2008, 4:00 p.m.
4622 Plumosa Drive, Yorba Linda, CA 92886 - Tel: (714) 701-3020
AGENDA
COMMITTEE:
Director John Summerfield, Chair
Director William R. Mills
Alternate: Director Ric Collett
STAFF:
Michael A. Payne, General Manager
Ken Vecchiarelli, Asst. General Manager
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:
Any individual wishing to address the committee is requested to identify themselves and state the matter
on which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the
individual for their comment when the item is considered. No action will be taken on matters not listed on
this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the
Water District. Comments are limited to five minutes.
ACTION ITEMS:
This portion of the agenda is for items where staff presentations and committee discussions are needed
prior to formal committee actions.
Consider a Professional Services Agreement with Foss Consulting Group for
appraisal services for the District's Plumosa Drive property.
Recommendation: That the Board of Directors authorize the President and
Secretary to execute a Professional Services Agreement with Foss
Consulting Group in an amount not to exceed $5,000, subject to review as to
form by General Counsel.
DISCUSSION ITEMS:
This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or
similar items for which staff is seeking the advice and counsel of the Committee Members. This portion of
the agenda may also include items for information only.
2. MWDOC Municipal Services Review
3. Revisions to the Joint Powers Insurance Authority Agreement for Internal Revenue
Service Compliance.
4. Board Policies
ADJOURNMENT:
The next Executive-Administrative-Organizational Committee is scheduled for February
19, 2008, 4:00 p.m.
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, District Secretary,
at 714.701.3020 or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309.
Requests must specify the nature of the disability and the type of accommodation requested. A
telephone number or other contact information should be included so the District staff may discuss
appropriate arrangements. Persons requesting a disability-related accommodation should make the
request with adequate time before the meeting for the District to provide the requested accommodation.
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ITEM NO. I
AGENDA REPORT
Board Meeting Date: January 10, 2008
To: Board of Directors
From: Michael A. Payne, General Manager
Staff Contact:
Reviewed by General Counsel: Yes Budgeted:
Funding Source:
CEQA Account No:
Compliance: N/A Estimated Costs:
Subject: Professional Services Agreement for Appraisal
Yes Total Budget: $ 5,450
Water Operating Fund
121780- -Jdb No:
$ 5000. Dept: Admin
SUMMARY: "
The District is on schedule for the completion of the new Ad, inistration Building in April 2008.
Once staff moves into the new building, the Administration office building at 4622 Plumosa Drive
(Plumosa property) will be vacant. In order to giue,..the-Board of Directors a staff report on the
various options on deciding what should be done with the Plumosa property, staff is
recommending obtaining a professional investigation and market value analysis of the property
and building. If the property is later degjared._surplus, the appraisal will provide staff with a fair
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market value analysis.
DISCUSSION:
The District has owned the property since 1959 when the District purchased the assets from the
Yorba Linda Mutual Water Company. This property was used exclusively as a booster station
until the current Administratidn-building was constructed in 1972. Since then the building and
property has been used--`f o administer the District's water and sewer operations and to house the
staffs of Administration„Business, Engineering, Support Services and the Information
Technology Departments.
In order to de e- rnine the fair market value of this property, District staff has solicited a proposal
from Foss,,-Consulting Group in Fullerton. The proposal from Foss has been incorporated into
the District's sCandard Professional Services Agreement. A listing of their current and past
clientsrvis-attached in the exhibit section of the agreement.
PRIOR RELEVANT BOARD ACTION(S):
On October 10, 2008, General Counsel Kidman presented a report on declaring the District's
Plumosa property and building as surplus. The Board requested the appraisal be done after the
first of the year (2008). On October 13, 2005, the Board of Directors approved an Agreement
for Purchase and Sale of Real Property and Joint Escrow Instructions with Upper K-Shapell
Joint Venture for property at the Fairmont Plant. On August 25, 2005, the Board of Directors
approved an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions
with Lennar Homes of California, Inc. and Bastanchury Holding, L.P. for property at the
. Bastanchury Plant. On May 27, 1993, the Board of Directors approved an Agreement for
Property Exchange Agreement with Upper K-Shapell Joint Venture for property at the Fairmont
Plant. Prior to that, the District sold the District's Olinda property and building in 1974.
STAFF RECOMMENDATION: _ That the Board of Directors authorize the President and Secretary to execute a Professional~
Services Agreement with Foss Consulting Group in an amount not to exceed $5,Qg0:bQ-,Subject
to review as to form by General Counsel.
COMMITTEE RECOMMENDATION: _
This item was not presented to any committee but to the entire Board on:October 10, 2007.
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PROFESSIONAL SERVICES ACRE EM ENT
BETWEEN THE. YORBA LINDA WATER DISTRICT
AND
FOSS CONSULTING GROUP
TFIIS PROFESSIONAL SERVICES AGRF.E:NTENT ("Agreement") is made and entered into
on January 10, 2008, by and between the YORBA LINDA WATER DISTRICT, a local public
agency, created and operating under authority of Division 12 of the California Water Code
("District"), and FOSS CONSULTING GROUP ("Consultant") (collectively referred to herein
as the "Parties").
RECIT. kLS
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WHEREAS, District is engaging in the Project described in the Scope of Work attached as
I xhibit " A and
WHEREAS, District requires a prof-essional consultant with the requisite knowledge, skill,
ability and expertise to provide the necessary services for District during all phases of the Project
to which the specialized services of Consultant are appropriate, and
WHEREAS, Consultant represents to District thut it is fully qualified and available to perturin
the services for and as requested by District; and
NOW, THEREFORE, in consideration of the mutual promises, covenants. and terms and
conditions herein, flu Partiee agree as follows:
AGRF.F.NIENT
1.0. SCOPE OF' WORE. The services to be provided by Consultant are called out in the
Scope of Work attached as Exhibit "A" and incorporated herein by reference. All such services
shall be pertormed in accordance with the highest professional standards and in such a prompt
and continuous fashion as not t,, unpcde ter delay file n:crall completion of the Prolcct.
1.1. Consultant. Consultant ackno~k ledges that continuous and effective
C~~mI7ltln l~__Ilin t~ bCtlvicen nlSn'''~, CmrIAUltant, %ind other r(mSultariN (its apprnprl)-itc,) i5
necessary to the successful completion of the Assignment. Consultant may also be
required to furnish copies of its work product and communications to others as requested
by District. Consultant's primary contact with District shall be through District's General
Manager or his designee. The District's primary contact with Consultant shall be Wayne
Foss. When requested by District, Consultant or his representative shall attend meetings
and will undertake, as a part of its professional responsibility, under this .Agreement, to
coordinate its activities with all appropriate individuals and consultants.
1.2. Use of Designs and Drawings.
drawings that can be reasonably attained.
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District will provide consultant with any
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1.3. Review. Consultant shall furnish District with reasonable opportunities from time
to tine to ascertain whether the services of Consultant are being performed in accordance
kith this Agreement. All services done and materials furnished shall he subject to final
review and approval by District. District's interim review and approval of Consultant's
\+ork product shall not relieve Consultant of its obligations to fully perform this Agreement.
1.4. Commencement of Work. The Project start date is effective immediately upon
execution of this agreement by both parties.
I.S. Time Is Of The Essence. Consultant shall perform all services with due
diligence as time is of' the essence in the performance of' this Agreement. Time limits
applicable for the performance of Consultant's services are established in Exhibit "A"
(Exhibit "A")
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2.0 COMPENSATION. As compensation for performance of the services specified under
the Scope of Work - Exhibit "A", District shall pay Consultant a maximum fee of $5000.00 for
services outlined in Exhibit A. The consultant shall be entitled to reimbursement for expenses
from the District at a rate of'S150.00 per hour and the assistant appraiser(s) or field researcher(s)
at the rate of S 100.00 per hour. The consultant shall provide the District with a list of expenses
by category of expense as a part of monthly billings. The District will pay consultant $2,500 of
the 55,000.00 at the time of execution of this agreement and the balance of the fees owed in
accordance with section 2.1.
2.1. Invoicing. Consultant shall submit an invoice within ten (10) days after the end
of each month during the tern of this Agreement describing the services performed for
which payment is rcxluestCd. District shall review and approve all invoices prior to
payment. District shall pay approved invoices within thirty (30) days of receipt.
Consultant agrees to submit additional documentation to Support the invoice ifregUCSted.
If District does not appruve an Invoice, District shalt send a notice to Consultant setting
forth the reason(s) the invoice was not approved. Consultant may re-invoice District to
cure the defects identified by District. The revised invoice will be treated as a new
;uhmittal. District's determinations regarding verification of Consultant's performance,
iccrued rei nhursable expenses, if any, and percentage of completion shall be binding and
conclusive. Consultant's time records, invoices, receipts and other documentation
suilportng the Invoices "hall he :r.'ailai lc for rC'-AC'X by DIStICt upon rcLsonab!e notice
and shall be retained by Consultant for three (3) years after completion of the Project.
2.2. Extra Services. 13ctore performing any services outside the scrape of thr
Agreement ("Extra Services"), Consultant shall submit a written request for approval of
such Extra Services and receive written approval from District. District shall have no
responsibility to compensate Consultant for any Extra Services provided by Consultant
without such prior written approval_
3.0 TERMINATION. District may terminate this Agreement at any time upon ten (10)
days written notice to Consultant. Should Distict exercise the right to terminate this Agreement,
District shall pay Consultant for any services satisfactorily completed prior to the date of
termination, based upon Consultant's Fee Schedule. Consultant may terminate this Agreement
upon ten (10) days written notice to District in the event of substantial failure by District to
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perform in accordance with the terms hereof through no fault of Consultant; or in the event
District fails to pay Consultant in accordance with the terms in Section 2.0, or if Consultant's
~crvices hereunder suspended for a period of time greater than ninety (90) days through no Deleted: >
f.nilr ofConsultant.
3.1. Withholding Payment. In the event District has reasonable grounds to believe
Consultant will be materially unable to perform the services under this Agreement, or if
District becomes aware of a potential claim against Consultant or District arising out of
Consultant's negligence, intentional act or breach of any provision of this Agreement,
including a potential claim against Consultant by District, then District may, to the fullest
extent allowed by law, withhold payment of any amount payable to Consultant that
District determines is related to such inability to complete the services, negligence,
intentional act, or breach.
4.0. SAFETY. Consultant shall execute and maintain the services so as to avoid injury or
damage to any person or property. Consultant shall be solely and completely responsible for the
safety ofall Consultant personnel during peitbrmance of services and while on District property.
Consultant shall fully comply with all state, federal and other laws, rules, regulations and orders
relating to safety of the public and workers. Consultant will be required to comply with all
applicable District Safety Practices during perforlnauce of Services under this Agreement.
5.0 INDEMNIFICATION. To the fullest extent permitted by applicable law, Consultant
shall and does agree to indemnify, detend and hold harmless District, its affiliated organizations
and its and their respective officers, directors, trustees, employees, agents, volunteers, successors
and assigns (collectively, the "Indernified Parties"), from and against any and all claims,
demands, damages, liabilities, losses, liens, causes of action, suits, judgments, costs and expenses
(including actual attorneys fees and litigation expenses), by or to any person or entity
whomsoever (collectively, the "Liabilities") of every kind or nature whatsoever, arising out of,
caused by, or resulting from (1) the pellormance, negligent pertonnance or nunperformance of
Consultant arid its agents, partners, employees, subcontractors or invitees (collectively, the
"Consultants"), services hereunder, or any part thereof, or (2) any breach of the obligations of
• (o nsultants under thi, Agreement or arising out of the implementation, construction, operation
,n maintenance of the Project, the Project Documents, Consultants' services hereunder, or any
I),m thereof, or (3) any negligence, omission or willful misconduct of Consultants, anyone
dircetly or indirectly employed by Consultants or anyone for whose acts Consultants may be
liable, c"crr it such Liabilitic'; arc cau:;ud ut part IT, the ncgl,gcncc, omis;,ons or willful
misconduct of any of' the Indemnified Parties, so long as such Liabilities are not caused by the
sole negligence, omission or willful misconduct of the Indemnified Parties. Consultants shall not
he ohlig;.lted to indemnify the indemnified Parties for the proportionate., :share of such adjudicated
loss caused by such negligence, omission or willful misconduct of the Indemnified Parties
Consultants further agree to fully defend, indemnify and hold harmless the Indemnified Parties
from any and all Liahilities, forfeitures or penalties arising from Consultants' violations of any
federal, state or local statute, rule or regulation to the full,-st extent permitted by applicable law.
C'onsultants' obligation to indemnify, defend and hold harmless is separate and distinct from its
obligations to provide insurance pursuant to Section 6.0. These provisions shall take effect as of
the date Consultants first undertake any action in furtherance of Consultants' duties or obligations
pursuant to this Agreement and shall survive the expiration or termination of this Agreement.
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6.0 INSURANCE REOUIRENIENTS. Prior to execution of this Agreement, and at any
time thccafter on request. Consultant shall pravidc executed certificates of insurance and policy
endorsements acceptable to District evidencing the required coverage and limits for each
insurance policy. Each insurance policy shall be primary insurance as respects District, its
at, filiated organizations and its and thou respective officers, directors, trustees, employees,
auents, consultants, attorneys, successors and assigns (collectively, the "Covered Parties") for all
liability arising out of the activities performed by or on behalf of Consultant. Ally insurance,
pool coverage, or self-insurance maintained by Covered Parties shall be excess of Consultant's
insurance and shall not contribute to it. Each insurance policy shall provide, or be endorsed to
provide, a waiver of rights of subrogation against Covered Parties. Each insurance policy shall
provide, or be endorsed to provide, that coverage shall not be cancelled except after thirty (30)
days prior written notice by U.S. Mail (ten (10) days for non-payment of premium) has been
given to District. Unless otherwise approved by District, each insurance provider shall be
authorized to do business in Cahtni-nia and have an A.M. Best rating (or equivalent) of not less
than "A:VII." Consultant shall provide and maintain at all times during the pertormance of this
Agreement the following insurance: (1) Commercial General Liability ("CGL') insurance; (2)
Automobile Liability insurance; (3) Workers' Compensation and Employer's Liability insurance;
and (4) Errors and Omissions ("E&O") liability insurance.
6.1. Commercial General Liability. Each CGL policy shall identity Covered Parties
as additional insured, or be endorsed to identify Covered Parties as additional insured
using ISO policy tbrm "CG 00 01" with an edition date prior to 2004, or the exact
equivalent. Coverage for additional insured shall not be limited to vicarious liability.
Defense costs must be paid ui addition to limits. Each CGL policy shall have liability
coverage limits of at least 51,000,000 per occurrence for bodily Injury, personal injury
and property damage, and either at least (a) $2,000,000 aggregate total bodily injury.
personal Injury and property damage applied separately to the Project; or at least (h)
$5,000,000 general aggregate limit for all operations. CGE insurance and endorsements
shall be kept in force at all times during the pcrtbrmance of this Agreement and all
coverage required herein shall be maintained after the term of this Agreement so long as
such coverage is reasonably available.
6.2. Automobile Liability. Each Automobile Liability policy shall require coverage
I1)r "any auto" and shall have Milts of at least S1,000,0061,61- bodily injury and property
d,unage, each accident, and shall use ISO policy form "CA 00 01", including owned,
11''11-nN'netl anti hlrt.'t,l or ih,:, cx-,ici "IU1A'BICTt t, If Con°.ult:int own< no vchiJcs, th!s
requirement may he satisfied by a non-owned auto endorsement to the CGL policy
described above. Automobile Liability insurance and endorsements shall be kept in force
at all times durinu the perti~rm~Inre of' this Agrcxrnent and all cnvcrace required herein
shall be maintained after the teen of this Agreement so long as such coverage is
reasonably available.
6.3. Workers' Compensation"Employer's Liahility. Consultant shall cover or
insure the existence of coverage under the applicable laws relating to Workers'
Compensation insurance, all of' their employees employed directly by them or through
sub-consultants at all times in carrying out the services contemplated under this
Agrcenicnt, in accordance with the "Workers' Compensation and Insurance Act" of' the
CalitOrma Labor Code and any amendatory Acts Consultant shall provide Employer's
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Liability insurance with limits of at least 51,000,000 each accident, $1,000,000 disease
policy limit, and 51,000,000 disease each employee.
fly Consultant's signature hereunder, Consultant certifies that it is aware of' the
provisions of Section 3700 of the California Labor Code, which requires every employer
to he insured against liability for Workers' Compensation or to undertake self-insurance
in accordance with the provisions of that code, and that Consultant will comply with such
provisions before commencing services under this Agreement. Upon the request of
District, sub-consultants must provide certificates of insurance evidencing such coverage.
6.4. Errors and Omissions. Each E&O policy shall have limits of at least 51,000,000
pcr claim and $1,000,000 aggregate. Architects' and Engineers' coverage is to be
endorsed to include contractual liability. E&O insurance and endorsements shall be kept
in force at all times during the performance of this Agreement and all coverage required
herein shall be maintained after the term of this Agreement so long as such coverage is
reasonably available.
7.0. INDEPENDENT CONTRAcrOR. The Parties agree that the relationship between
District and Consultant is that of an independent contractor and Consultant shall not, to any way,
be considered to be an employee or agent of District. Consultant shall not represent or otherwise
hold out itself or any of its directors, officers, partners, employees, or agents to he an agent or
employee of District. District will not be legally or Financially responsible for any damage or
loss that may be sustained by Consultant because of any act, error, or omission of Consultant or
any Other cuursultant, nor shall CURsUltant make any clans against Disuict arising out ofany such
act, error, or omission.
7.1. Taxes and Benefits. Consultant shall be solely responsible for the payment of all
federal state and local income tax, social security tax, Workers' Coin pensat ion
insurance, state disability insurance, and any other taxes or insurance Consultant, as an
udependent contractor, is responsible f6r paying under federal, state or local law.
Onsultant is not eligible to receive Workers' Compensation, medical, indemnity or
retirement henetits through District, includim, but not limited to enrollment in CaIPhRS.
('011,nl1ant is ni)t ehgiblc to rcccnc Ovcrtinu•, %dI,:JtI0H in sick p<iy.
7.2. Permits and Licenses. Consultant shall procure arid maintain all permits, and
lie~u5es, wid ~)ilrer;t~~cernn~enr-required certific;ariun nece:;sary IM tiff" 1,rrti~rmance
services, all at the sole cost of Consultant. None of the items referenced in this section
shall he reimbursable to Consultant under the .Agreement.
7,3, Methods. Cunsultant shall have the sole and absolute discrcnon in determining
the methods, details and means of' perf'Orminf, the services required by District.
Consultant shall furnish. at its own expense, all labor, materials, equipment, tools,
transportation and work necessary for time successful completion of the set- ices to be
performed under this Agreement. District shall not have any right to direct the methods,
details and means of the services; however, Consultant must receive prior written
approval from District before assigning or changing any assignment of Consultant's
project manager or key personnel and before using any sub consultants or sub consultant
agreements for services or materials under this Agreement and any work authorizations.
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8.0. NOTICES. Any notice may be served upon either Party by delivering it in person, or by
depositing it in a U.S. Mail Deposit Box with the postage thereon fully prepaid, and addressed to
the Party at the address set forth below:
District:
Michael A. Payne, General Manager
Yorba Linda Water District
P.O. Box 309
Yorba Linda, California 92885-0309
Consultant: Wayne Foss, NIA], CRE
Foss Consulting Group
1303 West Valencia Avenue
Fullerton, CA 92833-3585
Any notice given hereunder shall be deemed effective to the case of personal delivery, upon
receipt thereof, or, in the case of'mailing, at the moment of deposit in the course of transmission
with the United States Postal Service.
9.0 ASSIGNNiENT'. Neither Consultant nor District may assign or transfer this Agreement,
or any part thereof; without the prior written consent of the other Party, which shall not be
unreasonably withheld.
10.0 ATTORNEY'S FEES. In the event of any action arising out of', or in connection with,
this Agreement, or the services to be performed hereunder, the prevailing Party shall be entitled
to have and recover, in addition to damages, injunctive or other relief; its reasonable costs and
expenses, including without limitation, its attorney's fees.
11.0. BINDING ARBITRATION, Within thirty (30) days after service of a civil action on
either Party out of, or in connection with, this agreement, either Party may elect to
submit the action to hindin-, arbitration before the Judicial Arbitration and Mediation Service
located in Orange; C.'(~unly. flte P.utic; agr e thitt upon an election to arbitrate, aiiy
civil action filed will be stayed until arbitration proceedings have concluded. Upon submission
ofthe matter to JAMS, the submitting Party ;hall obtain front JAMS a list of three (3) randomly
sciceted arbitrators and scr~c said iist ulxsu the othct fatty. lu the event tiiat there are route dwn
two parties to the action, the number of arbitrators randomly selected and included in the list
shall be increased by two for each additional patty involved. [.:poll service of the randomly
selected list of arbitrators, each party shall have twenty (20) days to eliminate two arbitrators
from the list and return it to JAh1S, with the selected arbitrator being the remaining name on the
list. Should more than one name remain on the list, JAMS will randomly select the arbitrator
from the names remaining on the list. Arbitration shall be scheduled for hearing on the merits no
later than six (6) months after the date the arbitrator is selected. All parties shall be permitted to
conduct discovery as provided by the current rules of the California Code of'Civil Procedure. All
costs ol'JAL1S or of the arbitrator for services shall be divided equally among the Parties, unless
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otherwise ordered by the arbitrator. In an arbitration to resolve a dispute under this provision, the
arbitrator's award shall be supported by law and substantial evidence.
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12.0 WARRANTY. Consultant warrants that the services to be rendered pursuant to this
Agreement shall be performed in accordance with the standards customarily provided by an
experienced and competent professional rendering the same or similar services.
13.0 FORCE MAJEURE. Upon written notice by the owing Party, the respective duties and
obligations of the Parties hereunder (except District's obligation to pay Consultant such sums a,
may become due from time to time for services rendered by it) shall be suspended while and so
long as performance thereof is prevented or impeded by strikes, disturbances, riots, tire,
governmental action, war acts, acts of God, or any other cause similar or dissimilar to the
foregoing which are beyond the reasonable control of the Party from whom the atTccted
pertormance was due.
14.0 ENTIRE AGREEMENT. This Agreement, and the attached Exhibits, represent the
entire and integrated agreement between District and Consultant and supersedes all prior
negotiations, representations, or agreements, either written or oral. This Agreement may be
amended only by written instrument signed by both District and Consultant.
IN 1N'ITNESS WHEREOF, the Parties hereto have. caused this Agreement to be entered into as
ofthc day and year written above.
Ditr r,-t
Yorba Linda \k atcr District
13v
John Summertield, President
DistI(, .
Yorb:i I-nnl,r Watcr District
13 v:
Vlrcnaci A Ilayne, Jccrcuily
m)pj 1 1 1) A', I I r t I )p,y1I
McComuck, Kidman and buhicns. LLP
13v:
Arthur G Kidman,
General COUnsCI
Attachments: Exhibit A- Scope of Work
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Consultant:
Foss Consulting Croup
By:
Wayne E t ss, Al, 'RE
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l;xhibit "A"
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E~i . Ak
a si
Foss
GoNSULTItVG
®
GROUP
Real Estate Appraisals I Market Studies I Consulting
October 11, 2007
Mr. Michael Payne
General Manager
Yorba Linda Water District
4622 Plumosa Drive
Yorba Linda, CA 92886-2416
Re: Proposal for Appraisal Service
Dear Mr. Payne:
Thank you for your telephone call requesting appraisal services. This letter will outline the
specifications for services to be performed by the appraiser and the approximate compensation for
completing an investigation and market value analysis.
Specifications for Appraisal Service
1. Property to be Appraised:
4622 Plumosa Drive
Yorba Linda, CA
The Orange County Assessor identifies this property with parcel number 323-311-01. The
site is improved with the water district headquarters office building.
2. Completion of an investigation and analysis sufficient in scope to express an opinion on the
market value of the subject property. The appraisal is being prepared for the potential sale of
the property. The date of value will be concurrent with an inspection of the property.
3. Preparation of a report, which will outline our range in value, explains our method of
analysis and presents the market data. The report will be delivered in a summary narrative
format.
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Proposal for Appraisal Service 2
4. The appraisal will be made in conformity with and will be subject to the requirements of the
Code of Ethics and Standards of Professional Practice of the Appraisal Institute.
The appraisal will be made subject to the general assumptions and limiting conditions
attached to this proposal.
Compensation for Appraisal Services
The employer agrees to compensate the appraiser for his services at the rate of $150.00 per
hour and the assistant appraiser(s) or field researcher(s) at the rate of $100.00 per hour.
We are prepared to furnish said services for a maximum fee of $5,000.00, payable as follows:
a. Upon signing this agreement - $2,500.00
b. Balance is due upon receipt of the appraisal report
3. Should additional services of the appraiser be requested by the employer, his client, or the
court (such as pretrial conferences, court appearances, court preparation, etc.) the employer
agrees to compensate the appraiser at the hourly rate specified above. Pretrial depositions
and court appearances will be billed at the hourly rate of $250.00. Payment for such
additional services shall become due upon receipt of a statement rendered by the appraiser.
4. It is further understood and agreed that if any portion of the above compensation due the
appraiser becomes delinquent, the employer agrees to pay all costs of collection, including
reasonable attorney's fees, court costs, etc.
In the event the employer desires to cancel this authorization, written notice shall be
delivered to the appraiser, and it is agreed that the appraiser shall receive compensation from
the employer for all services rendered for the time actually spent prior to receipt of written
notice to stop work.
Regardless of whether the employer is receiving reimbursement from any third party for this
appraisal service, it is the employer who is our client and not any third party and no "privity
of contract" or "third party beneficiary" is intended to be established by the fact that a third
party is reimbursing employer or paying part of the appraisal service.
Items Needed for Completion of the Assignment
Preliminary Title Report
Escrow Instructions, Closing Statements, or option to purchase agreements
3. Soils and Environmental Reports, if available
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Proposal for ADDralsal Service 3
4. Building Plans and Specifications, if available
5. Tenant Leases and Schedule of Rents
6. Five Year History of Income and Expenses
7. A Person to contact to arrange an inspection of the property
We will proceed with this project upon receipt of a countersigned copy of this agreement, along with
a retainer check. Estimated time of delivery of the completed report is 30 to 45 days from the date
the authorization to proceed is received in this office. If you have any questions in relation to any
part of this agreement, please call me at your convenience.
Sincerely,
Foss Consulting Group
0 Waync Foss, MAI, CRF
Project Authorized by: - -
Date of Authorization:
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Proposal for Appraisal Service
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CONTINGENT AND LIMITING CONDITIONS
Standard Rule 2-2 of the "Standards of Professional Appraisal Practice" of the Appraisal Institute requires the
Appraiser to "set forth all assumptions and limiting conditions that affect the analysis, opinions and
conclusions." In compliance therewith and to assist the reader interpreting the report such limiting conditions
are set forth as follows:
That the date of value to which the conclusions and opinions expressed in this report applies is set
forth in the letter of transmittal. Further, that the dollar amount of any value opinion herein rendered
is based upon the purchasing power of the American dollar on that date.
That the Appraiser assumes no responsibility for economic or physical factors which may affect the
opinions herein stated occurring at some date after the date of the letter transmitting the report.
3. That the Appraiser reserves the right to make such adjustments to the valuation herein reported, as
may be required by consideration of additional data or more reliable data that may become available.
4. That no opinion as to title is rendered. Data related to ownership and legal description was obtained
from public records and is considered reliable. Title is assumed to be marketable and free and clear
of all liens and encumbrances, easements and restrictions except those specifically discussed in the
report. The property is appraised assuming it to be under responsible ownership and competent
management and available for its highest and best use.
That no engineering survey has been made by the Appraiser. Except as specifically stated, data
relative to size and area was taken from sources considered reliable and no encroachment of real
property improvements is considered to exist.
6. That maps, plats and exhibits included herein are for illustration only as an aid in visualizing matters
discussed within the report. They should not be considered as surveys or relied upon for any other
purposes, nor should they be removed from, reproduced, or used apart from this report.
7. That no opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the
property is subject to surface entry for the exploration or removal of such materials except as is
expressly stated.
8. That no opinion is intended to be expressed for matters which require legal expertise or specialized
investigation or knowledge beyond that customarily employed by real estate appraisers.
9. That the Appraiser believes to be reliable the information which was furnished by others, but he
assumes no responsibility for its accuracy.
10. Possession of the report, or a copy thereof, does not carry with it the right of publication, nor may it
be used for any purpose by any but the client without the previous written consent of the Appraiser or
the client and then only with the proper qualifications.
11. The comparable sales and/or rental data relied upon in this appraisal is believed to be from reliable
sources, however, it was not possible to inspect each comparable completely and it was necessary to
rely on information furnished by others as to said data, therefore, the value conclusions are subject to
the correctness and verification of said data.
0
Proposal for Annraisal Service
12. The land and particularly the soil, of the area under appraisement appears firm and solid. Subsidence
in the area is unknown or uncommon, but this Appraiser does not warrant against this condition or
occurrence.
13. That testimony or attendance in court or at any other hearing is not required by reason of rendering
this appraisal unless such arrangements are made a reasonable time in advance.
14. Neither all nor any part of the contents of this report shall be conveyed to the public through
advertising, public relations, news, sales or other media, without the written consent and approval of
the author, particularly as to valuation conclusions, the identity of the appraisal firm with which he is
connected, or any reference to the Appraisal Institute, or to the SRA, RM, SRPA, MAI or SRF.A
designations.
15. This appraisal report is intended to be used by the "client" only who has hired and contracted
"appraiser" to perform this appraisal report. The "client" which we are performing this appraisal for
is the Yorba Linda Water District. No part of this report is to be shown to or given to or discussed
with any potential buyer, seller, loan broker, real estate broker or any other 3rd party without the
express written consent of Foss Consulting Group. As such, this appraisal report is not intended, in
any manner whatsoever, to affect or be relied upon by buyers, sellers, real estate agents, loan brokers
or any other 3rd party. Such buyers, sellers, real estate agents, loan brokers or any other 3rd parties
have their own methods to determine value, age and conditions of the property including obtaining
their own appraisal on the property.
16. It may be necessary, as part of the process to determine value, to obtain copies of all lease
agreements. To protect both the client and the appraiser, these leases must be resigned (not initialed)
and currently dated by the sellers on the front page, right-hand corner, in the presence of the "client"
so as to confirm that the rents, terms and conditions stated in each lease are true and correct. An
inaccurate or false lease will directly affect the final conclusion of value as stated herein.
17. The liability of Foss Consulting Group and the appraiser(s) responsible for this report is limited to the
client only and to the fee actually received by the appraiser(s). Further, there is no accountability,
obligation or liability to any third party. If the appraisal report is placed in the hands of anyone other
than the client for whom this report was prepared, the client shall make such party and/or parties
aware of all limiting conditions and assumptions of this assignment and related discussions.
18. If the client or any third party brings legal action against Foss Consulting Group or the signor(s) of
this report, and the appraiser(s) prevails, the party initiating such legal action shall reimburse Foss
Consulting Group and/or the appraiser(s) for any and all costs of any nature, including attorneys'
fees, incurred in their defense.
19. The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has
not made a specific compliance survey and analysis of this property to determine whether or not it is
in conformity with the various detailed requirements of the ADA. It is possible that a compliance
survey of the property together with a detailed analysis of the requirements of the ADA could reveal
that the property is not in compliance with one or more of the requirements of the act. If so, this fact
could have a negative effect upon the value of the property. Since the appraiser has no direct
evidence relating to this issue, possible noncompliance with the requirements of ADA was not
considered in estimating the value of the property.
0
Foss Consulting Group
1303 West Valencia Drive Post Office Box 107
Fullerton, California 92833-4092 Fullerton, California 92836-0107
"Telephone: (714) 871-3585 Facsimile: (714) 871-8123
E-Mail: wfoss@fossconsult.com
Foss Consulting Group (formerly Wayne Foss Appraisals, Inc.) was organized to provide its clients
with appraisal, research and consulting services. The company's office is located in Fullerton,
California.
Foss Consulting Group is an appraisal firm that caters to the mortgage lending and legal
communities. Roughly 75% are legal and accounting firms specializing in estate tax planning and
20% of our clients are large and small commercial banks, savings and loan associations, mortgage
bankers. The remainder of our clients range from City and County governments, developers,
investors and individuals. The firm specializes in the analysis and valuation of residential
properties, income producing properties of all types, subdivisions, and land.
The primary geographic area serviced by Foss Consulting Group is Orange, Riverside, San
Bernardino and Los Angeles Counties. The staff, at one time or another, has worked in most of the
major communities within these counties and from time to time in San Diego, Ventura, Santa
Barbara and Kern Counties. Additionally we have completed assignments in Northern and Central
California, Hawaii, Arizona, Nevada, Texas and New Mexico.
I-lie services provided by Foss Consulting Group includes traditional appraising for market value
estimates, plus market analysis, feasibility studies, highest and best use studies and reports prepared
for presentation in courts of law.
A partial list of clients who have utilized the services offered by the firm are identified as follows:
Governmental Agencies
Orange County, California
Orange County Transportation
Authority
California Department of
Transportation (CALTRANS)
City of Brea, California
City of Buena Park, California
City of Fontana, California
City of Fountain Valley, California
City of Fullerton, California
City of La Habra, California
City of La Habra Heights, California
City of Orange, California
City of Cerritos, California
Brea-Olinda School District, Brea,
California
Lowell Joint School District, Whittier,
California
ABC Unified School District, Cerritos,
California
Garden Grove Unified School District,
Garden Grove, California
0
•
•
Financial Institutions and Trust Companies
Banco Popular
Bank of America
Bank of California
Bank One
The Bank of Westminster
California Bank and Trust
California Federal Bank
Cathay Bank
Centrust Savings Bank
Century Federal Savings & Loan
Cerritos Valley Bank
Chase Manhattan Bank
City Federal Savings
Commerce National Bank
County Bank, FSB
Dal-Ichi Kanyo Bank of California
Del Arno Savings
Eldorado Bank
Ever`hrust Bank
Farmers and Merchants Bank
First Continental Bank
First Interstate of Arizona
GMAC Mortgage
InterBLlsiness Bank
Kyowa Saitama Bank of California
Land Bank of Taiwan
Los Angeles National Bank
Mechanics National Bank
Merchant Bank of California
Overland Bank
Pacific Mercantile Bank
Pacific Western Bank
Preferred Bank
Redlands Federal Savings & Loan
Riverside National Bank
Santa Fe National Bank
Sanwa Bank California
The Daiwa Bank, Ltd.
Tokai Bank
Trust Bank
United National Bank
Ventura County National Bank
Wells Fargo Bank
Western Bank Mortgage
Weyerhaeuser Mortgage
Womens Federal Savings Bank
World Savings
Developers and Landowners
Balalis Corporation
Bryan Industrial Properties
Deane Properties
Friedman Homes
Hope Enterprises, Inc.
(The Bob Hope Legacy)
Imperial Hotel Corporation
R.C. Jewett Company
Kulberg, Ltd.
McBride & Associates
McCoy & Mills Ford
Osborne Development Corporation
Murray Ozer Development Corporation
Pacesetter Homes
Lyle Parks, Contractor
Patton Development Company
Rancon Corporation
Renick Cadillac
South Bay Ford
Sterling Builders
TOG Motels
Tustin Buick, GMC, Pontiac
UDC Homes
Watt America
0
•
Corporations, Attorneys and Institutions
•
Alcoa
American Store Properties, Inc.
Associates Relocation
Tom Bernauer, Attorney at Law
Barton, Klugman & Oetting
Best Motel Brokers
Better Homes & Gardens Relocation
Bush Properties
Chevron Real Estate
Coldwell Banker Relocation
Cole Company
Commonwealth Relocation
Corporate Moves
Douglas Oil Company
I.E. Dupont Nemours
Eastmen Kodak
Empire Relocation
Equitable Relocation
Executive Relocation
General Relocation
Gerber Products Company
Grubb & Ellis Relocation
Gulf Oil Company
Hagenbaugh & Murphy
Haight, Dickenson, Brown, Bastell
Hope Enterprises, The Bob Hope Legacy
George Jeffries, Attorney at Law
Kaiser Permanente
Lewis, Damato, Brisbois, Brisgaard
Merrill Lynch Relocation
O'Melveny & Myers, LLP
Palmieri, Tyler, Wiener, Wilhelm & Waldron
PHH Homequity
Thomas A. Bernauer, Attorney at Law
Tom Powell, Attorney at Law
Prudential Relocation
Relocation Consultants
Relocation Management Service
Rutan & Tucker, LLP
Travelers Relocation
Unocal Oil & Gas Division
0
WAYNE FOSS, MAI, CRE
•
1303 West Valencia Drive Post Office Box 107
Fullerton, California 92833-4092 Fullerton, California 92836-0107
Telephone: (714) 871-3585 Facsimile: (714) 871-8123
E-Mail: wfoss@fossconsult.com
PROFESSIONAL OUALIFICATIONS
EMPLOYMENT: October 1, 1989 to the present date: Employed by Foss Consulting Group (formerly Wayne
Foss Appraisals, Inc.), a full service real estate appraisal, consulting and research firm.
January 15, 1970 to September 30, 1989: Employed by Foss Associates, a general practice
real estate appraisal firm.
EDUCATION:
General:
A.A. - Fullerton College, Fullerton California - 1967
B.A. - California State University, Fullerton - 1972
M.B.A. - University of California, Irvine - 1996
D.B.A. - Argosy University - 2007
•
Specialized Real Estate Appraisal Courses:
Appraisal Institute
Course 520 - Highest & Best Use and Market Analysis, August 1997
Course 530 - Advanced Sales Comparison & Cost Approaches, June 1999
Course 550 - Advanced Applications, February 2004
Society of Real Estate Appraisers
Course 101 - An Introduction to Appraising Real Property, January 1972
Course 201 - Principles of Income Property Appraising, August 1971
Course 301 - Special Applications of Appraisal Analysis, September 1981
American Institute of Real Estate Appraisers
Course 1 A - Basic Appraisal Principles, Methods and Techniques, June 1971
Course 1B - Capitalization Theory and Techniques, August 1972
Course 2 - Urban Properties, June 1973
Course 4 - Condemnation, July 1974
Course 6 - Investment Analysis, August 1973
Course 7 - Industrial Valuation, July 1980
PUBLICATIONS:
Small Area Population Forecasting, (2002), The Appraisal Journal, 70, 2, 163-172
0
TEACHING EXPERIENCE:
California State University, Fullerton Adjunct Professor of Real Estate, 1998-07
Finance 353: Real Estate Valuation
Finance 454: Real Estate Market Analysis
Appraisal Institute
Course 520 - Highest & Best Use and Market Analysis - 1998-07
Los Angeles, CA; Seattle, WA; Salt Lake City, UT; San Diego, CA, Seoul,
Korea; Shanghai and Tianjin, China
General Market Analysis and Highest and Best Use - 2007
San Diego, CA; Los Angeles, CA
Seminar 638 - Highest and Best Use Applications - 2002
Bakersfield, CA
Seminar 731 - Appraisal Review, General - 2003
Torrance, CA
International Center for Land Policy Study and Training, Taoyuan, Taiwan, ROC
Course in Real Estate Appraising 2002-7
Society of Real Estate Appraisers Course 101 - 1976 to 1983
Course 201 - 1977 to 1988
Course 202 - 1985 to 1988
American Institute of Real Estate Appraisers Course IAl - 1980 to 1982
0 Course IA2 - 1981
Coast Community College District, Costa Mesa, California
Beginning and Advanced Real Estate Appraisal Courses, September 1974 to January
1977
Lectures
Real Estate Appraisers Association of the Republic of China, Taipei, Taiwan; National
Chengchi University, Taipei, Taiwan,; National Taipei University, Dept. of Built
Environment, Taipei, Taiwan; Toyota Motors, Torrance, California; Concordia
University, Irvine, California; The Counselors of Real Estate, Annual Convention
EXPERT WITNESS:
United States District Court - Central District of California
Criminal Division, Los Angeles, California
Bankruptcy Division, Los Angeles and Santa Ana, California
Superior Court - Orange County, California
Los Angeles County, California
Riverside County, California
Maricopa County, Arizona
11
PROFESSIONAL DESIGNATION AND LICENSES:
MAI - Appraisal Institute - Certificate No. 5549, dated November 1976
CRE - The Counselors of Real Estate - Certificate No. 2205, dated April 2004
California Real Estate Appraiser Certificate - General Certification, No. AG002804
California Real Estate Brokers License, No. 0-659718-1
Arizona Real Estate Appraiser Certificate - General Certification, No. 31580
PROFESSIONAL MEMBERSHIPS:
Appraisal Institute
Sigma Beta Delta
Lambda Alpha
American Real Estate and Urban Economics Association
National Association of Realtors
California Association of Realtors
Pacific West Association of Realtors
•
EL
VORBA LINDA
WATER
DISTRICT
DIRECTORS
Paul R. Armstrong
\lidmel J. Beverage
Ric P Collett
\1`1111,1111 R. Mills
)01111 \V SUwllw field
GEA1 RAL MANAGER
ITEM NO. Z
December 17, 2007
Orange County Local Agency Formation
Attention: Supervisor William Campbell, Chairman
10 Civic Center Plaza
Santa Ana, California 92701
SUBJECT: Orange County Local Agency Formation Commission
Scope of Work for MWDOC Governance Study
Dear Supervisor Campbell:
The Yorba Linda Water District is in receipt of the draft scope of
work for studying the governance issues of the Municipal Water
District of Orange County (MWDOC).
Given the complexity of this issue and the importance of the long-
term consequences involving MWDOC and its 29 retail member
agencies, Yorba Linda Water District respectfully requests the
Orange County LAFCO consideration to extend the time to provide
comments on the draft scope of work until after the holidays.
Sincerely,
V Michael A. Payne
General Manager
C: Joyce Crosthwaite, LAFCO
Kevin Hunt, MWDOC
4622 Plumosa Drive
P.O. Box 309
Yorba Linda, CA 92885
CI I j) 777-9593
i i 1 7U l O~f l 3
Email: y1wd@v1wd cony
Wet) mm,vfwd_com
Mike Payne
From: Crosthwaite, Joyce Ocrosthwaite@oclafco.org]
Sent: Monday, January 07, 2008 12:16 PM
To: bbaehner@cityoforange.org; bettym@smwd.com; BONKOWSL@irwd.com; bredcay@eocwd.com;
bjones@buenapark.com; carlon@cityoflapalma.org; cfowler@buenapark.com; cook@irwd.com;
dianasport@earthlink.net; Don Chadd; glenb@ci.westminster.ca.us; gmurdoch@city.newport-
beach.ca.us; gwoodside@ocwd.com; hjohnson@surfcity-hb.org;
jeannie.heimberger@fountainvalley.org; jerryv@lahabracity.com; Kennedy, John;
johns@smwd.com; jwatson@ci.seal-beach.ca.us; Ken Vecchiarelli; Ionniecurtis@gswater.com;
Thorns, Marilyn [RDMD]; Mike Payne; Pat Meszaros; Paul Jones; pwelsch@etwd.com;
pscanlon@scwater.com; Renae Hinchey; rkern@buenapark.com; RonKr@ci.brea.ca.us;
rudyc@ci.brea.ca.us, scottm@ci.westminster.ca.us, smyrter@city.newport-beach.ca.us;
zackb@ci.garden-g rove. ca. us; kseckel@mwdoc.com; Kevin P. Hunt; Baucke, Howard [RDMD]
Cc: heprs@cox.net; Aldrich, Bob
Subject: Draft RFP for MWDOC Study
I have attached a copy of the draft RFP and staff report to the LAFCO Commission. We are
recommending that the Commission continue consideration of the draft RFP until the February
13th LAFCO meeting to allow more time for comments by agencies.
We will need_ all comments on the draft RFP by-_5:00 pm on FridayFebruary_1 t in.order
to meet the deadline for our 2/13/08 LAFCO.meeting,
If you have questions or comments please call or email me. If I have missed any agency with
this email, please let me know.
Thanks!
Joyce Crosthwaite
Executive Officer
Orange County LAFCO
714-834-2556
714-834-2643 (fax)
jcrosthzaaite@oclafco.org
•
1/11/2008
Local Agency Formation Commission
Orange County
January 9, 2008
TO: Local Agency Formation Commission
CHAIR
Bill Campbell
Supervisor
FROM: Joyce Crosthwaite, Executive Officer
Third District
VICE CHAIR
SUBJECT: Draft Scope for Study of MWDOC Governance Alternatives
John Withers
Director
Irvine Ranch Water District
At the November 14, 2007 meeting, the Commission directed staff to complete a
draft scope of work for a special study to evaluate several potential government
Robert Bouer
Councilmember
structure options for the Municipal Water District of Orange County (MWDOC).
City of Laguna Woods
The special study is an outgrowth of the M WDOC Municipal Service Review
which was accepted by the Commission at that same meeting.
Peter Herzog
Councilmember
Attached (see Attachment 1) is a draft scope for your review. To allow additional
City of Lake Forest
time for review and comment by interested agencies, however, staff is
recommending that final consideration of the scope of work be continued to your
John moorlAch
February 13, 2008 meeting.
Supervisor
2^d District
RECOMMENDATION
~e Schafer
erector
1. Continue consideration of the draft scope of work for evaluation of potential
Costa Mesa
government structure options for MWDOC to the February 13, 2008 meeting.
Sanitary District
Susan Wilson
Representative of
General Public Respectfully submitted,
ALTERNATE
Pat Bates
Supervisor
5,h District
ALTERNATE
Patsy Marshall
Councilmember
City of Buena Park
JOYCE CROSTHWAITE
ALTERNATE
Rhonda McCune Attachment: Draft Scope of Work for MWDOC Special Study
Representative of
General Public
ALTERNATE
Charley Wilson
Director
Margarita
District 12 Civic Center Plaza, Room 235, Santa Ana, CA 92701
(714) 834-2556 • FAX (714) 834-2643
http://www.orange.lafco.ca.gov
July 25, 2007
RE: Rossmoor CFA RFP
Page 2 of 2
•
•
0
ATTACHMENT 1
•
Draft Scope for Request for Proposals
Study of MWDOC Governance Alternatives
Project description and background: Over the past 18 months, OC LAFCO
staff has worked with the Municipal Water District of Orange County (MWDOC)
and its member agencies to complete a Municipal Service Review and Sphere of
Influence Review. The LAFCO study was accepted and MWDOC's SOI affirmed
by the LAFCO Commission on November 14, 2007. Several potential
governmental structure options were identified in the study but it was agreed that
more specific analysis and review would be required.
At the November 14`" meeting six MWDOC member water agencies requested
LAFCO to support and when deemed appropriate, conduct a detailed special study
of organization and service alternatives, and the Commission directed staff to
complete a scope and schedule for such a study by the January 91" 2008 meeting.
• OC LAFCO staff has determined that additional consultant assistance and
expertise will be required to supplement LAFCO staff to complete the special
study and fully evaluate the options in a timely manner. Areas of special expertise
include but are not limited to detailed legal review and analysis and financial
analysis of options and potential outcomes.
TASK 1: Draft Scope of Work
Review assumptions and data in the MSR Study, its appendices, and other
documents including but not limited to varying Member Agency service level
requirements, representation, financial projections of costs, rates and
organizational structures to develop baseline assumptions for the analysis. At
minimum, consultant should:
• Establish a timeline for study completion.
• Establish a decision-tree process including options for stakeholder
input, on-going evaluation of analysis/impacts, legislative action (if
needed), a public election process (if needed) for identified
alternatives.
•
• TASK 2: Conduct a "Baseline Analysis" of MWDOC's Current Service
Model for Comparison to other Alternatives. The Baseline
Analysis shall include, but not be limited to:
• Definition of essential services and service requirements for various
types of member agencies, including a member agency service needs
assessment.
• Preparation of "cost of service" analysis for current level of service,
including direct and indirect costs attributable to providing each
service.
• Completion of cost recovery analysis relative to the services provided
that compares MWDOC's sources of revenue from member agencies
with the recipients of the various services provided.
TASK 3: Identify Potential Governance Structure Alternatives for Providing
(1) Services/Functions currently delivered by MWDOC, and (2)
Varying Service/Function levels deemed appropriate and/or
necessary by groups of Member Agencies based upon local
capabilities and resources inclusive of identification of benefits
and/or negative impacts of each option for the agencies and
customers involved. Governance structure options may include:
• Status Quo
• Dissolution of MWDOC and formation of new countywide entity in
form of County Water Authority or other agency as allowed by the
Metropolitan Water District of Southern California enabling
legislation.
• Governance of cooperative South County water agencies through
detachment from MWDOC and formation of a new entity (along with
options of type agency).
• Any other viable governmental structure alternatives including but not
limited to the 2007 draft seven agency agreements.
This task shall also include the development and application of a comparison
methodology and criteria that can be used to comparatively analyze various
Governance Structure Alternatives.
0
TASK 4: Conduct a Legal Analysis for each of the identified alternatives
• Provide detailed legal analysis of the process to implement each
identified governmental structure option under existing law.
• Prepare a legal discussion of any legal barriers, conflicts and/or
representation issues for the member agencies of both the
Metropolitan Water District of Southern California and MWDOC for
each alternative organization structure.
• Assist the LAFCO staff and consulting team in developing and
organizing an implementation plan for the selected alternative(s)
including the process for conducting any required elections or
enactment of new state law.
TASK 5: Prepare Financial Analysis and Findings
• Complete a financial analysis of each identified alternative including
but not limited to initial transition costs, projected
administrative/operational costs, revenue requirements, and financial
impacts on MWDOC and the Member Agencies for a ten-year period
of time.
• Develop a methodology for the equitable allocation/distribution of
assets including but not limited to infrastructure and agency reserves.
• Analyze impacts on voting rights and representation at MWD of each
identified alternative.
TASK 6: Timeline and Preparation of Report
• It is anticipated that a working group including LAFCO staff and
agency representatives will be established to consider progress on the
study and preliminary analysis and findings with alternatives.
Consultant should include time and effort for such a process to
include approximately four meetings at LAFCO during the report's
preparation
• A stakeholder meeting of MWDOC's member agencies will be held
after completion of task as appropriate. LAFCO staff shall call,
coordinate and staff all stakeholder meetings.
• Selection of a firm is anticipated to be made by April 2008 with an
anticipated study start date of May 2008.
• Consultant will be responsible for preparation of. (1) a Preliminary
Draft Report for internal distribution; (2) a Final Draft Report for
submittal to interested agencies and the public for review and
comment; and, (3) preparation of a Final Study Report for submittal to
LAFCO.
• Consultant should develop a detailed study schedule and timeline as
well as work effort estimate in numbers of work hours for each phase
of the Study. Consultant should identify each Principal and key staff
member who will work on the project, submit a brief bio of
experience and qualifications for each, and a statement of
commitment for each member to be on the team for the duration of the
study process (expected to be 6 to 9 months). LAFCO maintains the
right to request to add or remove consultant staff persons during the
study process.
• Consultant should also submit a cost proposal of estimated hours and
costs by task and function with a Not-to-Exceed Fee based upon the
scope of work.
•
0
ITEM NO. 3
AGENDA REPORT
Committee Meeting Date: January 15, 2008
To: Executive-Administrative-Organizational Committee
From: Michael A. Payne, General Manager
Staff Contact: Pamela Pietras, Assistant Administrator
Reviewed by General Counsel: N/A Budgeted: N/A Total Budget:
Funding Source:
CEQA Account No: Job No:
Compliance: N/A Estimated Costs: N/A Dept: Admin
Subject: Revisions to the Joint Powers Insurance Authority Agreement for Internal Revenue
Service Compliance
SUMMARY:
The Association of California Water Agencies, (ACWA) and Joint Powers Insurance Authority,
(JPIA) requires that JPIA members must be members of the Association as well as be a public
agency or entity of local government.
A recent ruling by The Internal Revenue Service has prompted ACWA to revise its membership
criteria and classification. As a result of the ruling, any joint powers authority that includes a
mutual water company in its membership is no longer eligible to be an "Agency Member of
ACWA. ACWA has also had to eliminate its "Affiliate Member" and "Associate Member"
categories although; those entities may continue to support ACWA's efforts as a "Friend of
ACWA".
DISCUSSION:
The JPIA's total membership includes 24 joint powers authorities. Six of those include mutual
water companies that have individual membership. JPIA is only providing coverage to the joint
powers authority, a separate legal entity, not to the individual members. As a result of ACWA's
action, the six mutual water companies are no longer eligible to be ACWA members and would
thus be forced to withdraw from the JPIA. There is a provision that the mutual water companies
may continue to be associated with ACWA as a "Friend of ACWA".
Attached is the ACWA/JPIA, Joint Powers Agreement with the proposed revisions. Additions are
underlined; deletions are struck through and vertical lines in the margins indicate where the
changes have been made. Basically, the proposed revisions would amend two of the definitions
in Article 1 to allow JPIA membership of a public agency that is a "Friend of ACWA" as well as
those regular ACWA members. Article 23 also requires modification to allow for cancellation of
JPIA's membership if an agency ceases to be a "Friend of ACWA".
0
PRIOR RELEVANT BOARD ACTION(S):
None.
STAFF RECOMMENDATION:
Staff has reviewed the changes in the agreement which has no implications for the District. This
is an information item only.
•
•
ACWA/JPIA
Revisions to the JPIA's
Joint Powers Agreement
November 26, 2007
BACKGROUND
The JPIA's Joint Powers Agreement requires that JPIA members must be members of
the Association of California Water Agencies (ACWA) as well as be a public agency or
entity of local government.
A recent ruling by the Internal Revenue Service has forced ACWA to revise its
membership criteria and classification. As a result, any joint powers authority that
includes a mutual water company in its membership is no longer eligible to be an
"Agency Member" of ACWA. ACWA was also forced to eliminate its "Affiliate Member"
and "Associate Member" categories. Those entities may continue to support ACWA's
efforts as a "Frierid of ACWA".
CURRENT SITUATION
The JPIA's membership includes 24 joint powers authorities. Six of those include
mutual water companies among their individual membership. Note that the JPIA is only
providing coverage to the joint powers authority, a separate legal entity, not to the
individual members. As a result of ACWA's action, those six are no longer eligible to be
ACWA members and would thus be forced to withdraw from the JPIA. They may,
however, continue to remain associated with ACWA as a "Friend of ACWA".
Attached is the JPIA's Joint Powers Agreement with proposed revisions. Additions are
underlined; deletions are struck through. Vertical lines in the margins indicate where
changes have been made.
The proposed revisions would amend two of the definitions contained in Article 1 to
allow JPIA membership of a public agency that is a "Friend of ACWA" as well as those
regular ACWA members. Article 23 also requires modification to allow for cancellation
of JPIA membership if an agency ceases to be a "Friend of ACWA". There are also
several other minor grammatical and editorial corrections noted.
RECOMMENDATION
Staff recommends that the Board approve the revisions to the Joint Powers Agreement
as proposed.
Prepared by: John Gilstrap, Director of Member Services Date Prepared: November 14, 2007