Loading...
HomeMy WebLinkAbout2008-05-13 - Finance-Accounting Committee Meeting Agenda PacketML W , YORBA LINDA WATER DISTRICT FINANCE - ACCOUNTING COMMITTEE MEETING Tuesday, May 13, 4:00 p.m. 1717 E. Miraloma Avenue, Placentia - Tel: (714) 701-3020 AGENDA COMMITTEE: Director Michael J. Beverage , Chair Director John W. Summerfield Alternate: Director William R. Mills STAFF: Michael A. Payne, General Manager Ken Vecchiarelli, Assistant GM Diane Cyganik, Finance Director Lee Cory, Operations Manager Sandi Van Etten, Senior Accountant Stacy Bavol, Customer Svc. Supervisor 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 adjustments to the Customer Service, Developer, and the Fats, Oils and Grease fees effective July 1, 2008. Recommendation: That the Finance-Accounting Committee recommend to the Board of Directors that the Customer Service, Developer and FOG fees be adjusted as presented effective July 1, 2008. 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. Monthly status report on portfolio investments ending April 30, 2008. Report by Keith Khorey of Wells Capital Management. 3. Investment Report for the month ending March 31, 2008. 4. Cash-out audit of General Manager Payne. 5. District's Purchasing Policy. ADJOURNMENT: The next regularly scheduled Finance-Accounting Committee meeting is June 10, 2008. 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. -2- ITEM NO. AGENDA REPORT Committee Meeting Date: May 13, 2008 To: Finance-Accounting Committee From: Michael A. Payne, General Manager Staff Contact: Diane Cyganik, Finance Director Lee Cory, Operations Manager Sandi Van Etten, Senior Accountant Stacy Bavol, Customer Service Supervisor Reviewed by General Counsel: No Budgeted: No Funding Source: N/A CEQA Account No: Compliance: N/A Estimated Costs: N/A Total Budget: N/A Job No: Dept: All Subject: Customer Service Fees; Developer Fees; and Fats, Oils and Grease (FOG) Discharge Permit Fees 1 SUMMARY: The Board of Director's policy is to annually review the Customer Service and Developer Fees. The current Customer Service and Developer Fees were last changed in November 13, 2003. This was Resolution No. 03-14 and 03-16, respectively. In 2004 the Yorba Linda Water District, here after referred to as the District, adopted Ordinance 04-01, which regulates Food Service Establishments (FSE's) limiting the discharge of fats, oils and grease (FOG) into the sewer system. The District regulates all FSE within its sewer jurisdiction to comply with the FOG program requirements and to apply for an annual FOG Waste Water Discharge Permit. The permit fee is new to the District and is needed to fund the cost of maintaining and enforcing the program which is mandated by the State Water Resources Control Board Order No. 2006-0003 as it applies to Waste Discharge Requirements for Sanitary Sewer Systems. DISCUSSION: The Customer Service and Developer Fees comply with the California State laws governing the setting of fees charged to customers and developers of property. In establishing the new FOG fees staff reviewed all of the cost associated with maintaining the FOG program including printing cost, staff cost and equipment cost. Staff compared these cost with other agencies to determine the best method for how the permit cost would be generated. Attached are the following exhibits that provide a break down of how the fees were determined: • Exhibit A - Customer Service Fees • Exhibit B - Developer Fees (Both Water & Sewer) • Exhibit C - Fats, Oils & Grease Fees In addition, attached is Resolution No. 08-04 which will rescind Resolution Nos. 03-14 and 03- 16. PRIOR RELEVANT BOARD ACTION(S): On November 13, 2003, the Board accepted the Water and Sewer Development and Customer Service Fee Report for Fiscal Year 2003-04. In addition, the Board adopted Resolution Nos. 03- 14 and 03-16, respectively. The only prior action taken by the Board on the FOG fees is District Ordinance 04-01 adopted on July 22, 2004. STAFF RECOMMENDATION: That the Finance-Accounting Committee review and recommend to the Board of Directors to approve the Customer Service Fees; Developer Fees; establish a FOG Permit fee; as well as Resolution No. 08-04. FXHTBIT A CUSTOMER SERVICE FEES - Fiscal Year 2008-2009 Avg Hrly Rate Hours Charge Avg Hrly Rate Hours Charge Door Tag Fee Tampered Lock Sal/Ben 37.05 0.5 $18.53 Sal/Ben 37.05 1 $37.05 Vehicle 15.00 0.25 $3.75 Lock $28.20 Current Vehicle 15.00 1 $15.00 Current Total $22.001 $18.00 1 Total $80.001 $38.001 $20.00 $80.00 Shutoffs Removal/Replacement Sal/Ben 37.05 1 $37.05 Sal/Ben 37.05 2.5 $92.63 Vehicle 15.00 1 $15.00 Current Vehicle 15.00 2.5 $37.50 Current Total $52.001 $28.00 1 Total $130.001 $56.001 $50.00 $130.00 Reconnect Meter Testing Sal/Ben 37.05 1 $37.05 Sal/Ben 37.05 2 $74.10 Overhead Vehicle 15.00 2 $30.00 Current Vehicle 15.00 1 $15.00 Current Total $104.001 $82.001 Total $52.001 $50.00 $28.00 $105.00 After Hours Charge Auto Pay Return Sal/Ben 41.26 2 $82.52 Sal/Ben 38.92 0.5 $19.46 Vehicle 40.00 2 $80.00 Current Computer $0.00 Current Total $163.001 $165.00 $148.00 Total $19.001 $20.00 $15.001 NSF Charge New Account Fee lN ew Fee Sal/Ben 38.92 0.5 $19.46 Sal/Ben 38.92 0.5 19.46 Vehicle 15.00 0.45 $6.75 Vehicle 15.00 0.5 $7.50 Current Current Total $27.001 $25.00 $25.00 1 Total $26.001 $25.00 $0.00 (Late Fee on Construction Meter/Jumper Rentals 30%APR which is 2.5% monthly on unpaid bills New Fee DEPOSITS Service Avg Avg Avg Deposit Previous Charge Units Monthly 3 Months Deposit 3/4 & 1 inch 8.35 40 71.60 214.80 $225.00 92.00 1 1/2 inch 8.35 84 150.36 451.08 $450.00 302.00 2 & 3 inch 8.35 136 243.44 730.32 $750.00 478.00 4 inch & Larger 8.35 453 810.87 2,432.61 $2,500.00 1,553.00 Proposed Fee New Fee Current Fee EXHIBIT R WATER DEVELOPER FEES 5/11/2008 Administrative Fee: $3,186.00 Records and Billina Fee: $354.00 per connection Plan Check Fee: Number of Connections Fee per Connection 1-10 $539.00 11 - 20 $292.00 21 - 30 $202.00 31 - 40 $191.00 41 - 50 $135.00 51 - up $112.00 Inspection Fee: 1 -10 $1,241.00 11 - 20 $697.00 21 - 30 $485.00 31 - 40 $390.00 41 - 50 $331.00 51 - up $295.00 Meter Fee: Size Fee - Radio Read % inch $628.00 1 inch $666.00 1 inch $1,069.00 2 inch $1,241.00 Larger than 2 inches By estimate Fee Sinale Service Fee: $1,609.00 Temporary Meter (Construction Meter): $1,000.00 Temporary Untreated Water Fee: 2 times district cost Backflow Device Monitorina Fee: $29.00 GIS Data Conversion Fee: $100.00 per plan sheet SEWER DEVELOPER FEES 5/11/2008 Service Fee: Drainage Area Fee per Acre 1 $1,660.00 2 $1,450.00 Frontage Fee: $53.00 per Front Foot, but not less than $3,975.00 per connection Administrative Fee: $1,673.00 Records and Billing Fee: $284.00 per connection Plan Check Fee: Number of Connections Fee per Connection 1 -10 $86.00 11 - 20 $46.00 21 - 30 $32.00 31 - 40 $30.00 41 - 50 $21.00 51 - up $18.00 Inspection Fee: 1 -10 $723.00 11 - 20 $402.00 21 - 30 $268.00 31 - 40 $167.00 41 - 50 $127.00 51 - up $87.00 Fee Sinale Service Fee: $1,181.00 Mainteneance Fee: $5.50 GIS Data Conversion Fee: $100.00 per plan sheet FOG Fees: Initial Permit $423.00 Annual Renewal $286.00 Non-Compliance $287.00 Mitigation $1,646.00 2008 -2009 Cost/Dav Cost/Hour Engineering 402.24 50.28 Business 321.84 40.23 Operations 345.12 43.14 Administration 419.04 52.38 IT 381.68 47.71 Vehicle - Operations 320.00 40.00 Vehicle - Engineering 120.00 15.00 Vehicle - Business 120.00 15.00 Water Indirect Labor % 164% Sewer Indirect Labor % 108% Water Fees Records and Billing Fee DAYS per Conn Chq Plan Chk Insp 1 to 10 Connections 0.48 1.05 11 to 20 Connections 0.26 0.59 21 to 30 Connections 0.18 0.41 31 to 40 Connections 0.17 0.33 41 to 50 Connections 0.12 0.28 51 and up Connections 0.1 0.25 Records and Billing Fee Hours Chq Set Up Acct - Cust Svc 0.5 $20.12 Work Order - Cust Svc 0.75 $30.17 Engineering Records 1.5 $75.42 Sub -Total Labor $295.00 $125.71 Equipment 1.5 $22.50 Indirect Labor $206.16 Single Service Fee Hours Chq Records and Billing $354.00 Engineering Processing 5 $251.40 Inspection 4 $201.12 Sub -Total Labor $806.52 Equipment 4 $60.00 Indirect Labor $742.13 Total $1,609.0 0 tld y input r[umbers (changed from previous years) Highlighted = automatic changes by spreadsheet Complete Water Water Plan Check Fee /Conn Insp Fee /Conn $539.00 $1,241.00 $292.00 $697.00 $202.00 $485.00 $191.00 $390.00 $135.00 $331.00 112.00 $295.00 Administrative Fee Days Cost Processing fee 3 $1,206.72 Overhead $1,979.02 Total $3,186.00 Backflow Admin Fee Hrs Cost Processing time 0.5 $25.14 Indirect Labor $3.77 Total $29.00 Sewer Fees Meter Fees Plan Chk Insp DAYS Meter Fee: *`Mat'I Mat O/H Mat'I Tot Labor Hrs Labor Lab O/H Tot Labor Eg Hrs Equip Total Fee 3/4 inch $0.00 $0.00 $0.00 0 0.00 $0.00 $0.00 0 $0.00 $0.00 3/4 inch RADIO $345.00 $51.75 $396.75 1.5 64.71 $106.12 $170.83 1.5 $60.00 $628.00 1 inch $0.00 $0.00 $0.00 0 0.00 $0.00 $0.00 0 $0.00 $0.00 1 inch RADIO $378.00 $56.70 $434.70 1.5 64.71 $106.12 $170.83 1.5 $60.00 $666.00 1 1/2 inch $0.00 $0.00 $0.00 0 0.00 $0.00 $0.00 0 $0.00 $0.00 1 1/2 inch RADIO $595.00 $89.25 $684.25 2.5 107.85 $176.87 $284.72 2.5 $100.00 $1,069.00 2 inch $0.00 $0.00 $0.00 0 0.00 $0.00 $0.00 0 $0.00 $0.00 2 inch RADIO $745.00 $111.75 $856.75 2.5 107.85 $176.87 $284.72 2.5 $100.00 $1,241.00 "Material includes: meter, MXU, tailpiece, meter box and lid & tax. From Stacy, Russ, Maria Equipment 4 Sewer Fees Plan Chk Insp DAYS DAYS Plan CHK Inspection per Conn per Conn Fee/Conn Fee /Conn 1 to 10 Connections 0.10 0.76 $86.00 $723.00 11 to 20 Connections 0.05 0.42 $46.00 $402.00 21 to 30 Connections 0.04 0.28 $32.00 $268.00 31 to 40 Connections 0.03 0.18 $30.00 $167.00 41 to 50 Connections 0.024 0.133 $21.00 $127.00 51 and up Connections 0.02 0.091 18.00 87.00 Records and Billing Fee: Hours Chg Administrative Fee: Days Set Up Acct - Cust Svc 0.5 $20.12 Processing fee 2 $804.48 Work Order - Cust Svc 0.75 $30.17 Overhead $868.84 Engineering Records 1.5 $75.42 Total $1,673.00 Sub -Total Labor $125.71 Equipment 1.5 $22.50 Overhead $135.76 Total $284.00 Single Service Fee: Hours Chg Records and Billing fixed $284.00 Engineering Processing 4 $201.12 Inspection 4 $201.12 Sub -Total Labor $686.24 Equipment 4 $60.00 Overhead $434.42 Total $1,181.001 EXHIBIT C YORBA LINDA WATER DISTRICT FOG PERMIT FEES Initial Permit & Application Fee: $ 422.63 The initial permit fee includes the cost of the effort taken by the District to develop and implement the FOG Control Program, including administrative cost, initial site inspections and material reproduction. Annual/Renewal FOG Permit: $ 286.10 This permit fee is based on on-going District cost to maintain the program; it also includes the OCHA inspections. Non-Compliance Fee: $ 287.10 This fee is assessed in the event the Food Service Establishment (FSE) fails to comply with the District Fats, Oil and Grease ordinance. Mitiization Fee: $ 1,645.98 This fee is the cost associated when the District must go out to a sewer line and mitigate the effects of fats, oils and greases contributed/caused by a failure of a FSE to comply with the FOG program. YLWD FOG FEES Initial Per~it Fog Tool Kit: I 1 $6,840.00 IMinute Man Press - Printing of FOG Books and Posters I $891.37 I I Advertising Materials 1Printing Solutions (Sewage Spill Reference Guides) I $2,465.00 Legal Fee 1$150 hr @ .5 hr (x 75 FSE) 1 $5,625.00 Phase Study $7,417.88 Initial Permit Subtotal: $23,239.25 Foc A lication Fee I I Administrative Support (Secretary @ 1 hr (x 75 FSE) 1 $2,502.75 Management Support (Operations Mqr. @ .5hr (x 75 FSE) 1 $2,833.88 Finance 1 hr (x 75 FSE) 1 $3,121.50 Application Fee Subtotall $8,458.131 Total Cost1 $31,697.38 Cost to FSE for Initial Permit & Application Fee Total Cost divided by 75 Food Service Establishments (FSE) $422.63 Annual/Renewal FOG Permit Interceptor Inspections IFlat Rate FOG Code Compliance Inspector ISr. Water Dist. OP @ 1 hr + vehicle Maintenance Superintendent I .5hr. +vehicle Administrative Support ISecretary @ 1 hr Management Support (Operations Mgr. @ .5hr Finance 1.5hr OCHCA Inspections I Tota I I Non-Compliance Fee Legal Fees 1$150 hr @ .5 hr Finance Cost 1.5hr FOG Code Compliance Inspector ISr. Water Dist. OP @ 1 hr + vehicle Administrative Support ISecretary @ 1 hr Management Support lOperations Mgr. @ .5hr Maintenance Superintendent 1.5hr + Vehicle Tota I 1 Mitiqation Fee (Finance 11 hr FOG Code Compliance Inspector ISr. Water Dist. OP @ 1 hr + vehicle Administrative Support ISecretary @ 1 hr Management Support (Operations Mgr. @ 1 hr 2) Maintenance Workers IWMDOIII & WMDOII @ 4 hrs (each) Maintenance Superintendent 11 hour + vehicle Line Cleaning Vehicle 1$150 @ 4 hrs CCTV Vehicle 1$140 @ 4 hrs Legal Fees 1$150 hr @ .5 hr Tota I I I $50.00 I $65.81 I $54.32 I $33.37 $37.791 I $20.811 I $24.001 $286.131 $75.00 $20.81 $65.81 $33.37 $37.79 $54.32 $287.101 $41.62 $65.81 $33.37 $75.57 $201.04 $68.57 560.00 600.00 $75.00 $1,645.981 C:\Documents and Settings\dcyganik\Desktop\FOG Fee worksheet XX YLWD Title FOG Code Compliance Inspector Administrative Support Manaqement Support WMDOIII WMDOII Maintenance Superintendent Finance Vehicle FOG FEES Rate per Hour $50.81 $33.37 $75.57 $44.64 $39.10 $53.57 $41.62 $15.00 C:\Documents and Settings\dcyganik\Desktop\FOG Fee worksheet XX RESOLUTION NO. 08-04 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING WATER/SEWER DEVELOPER; CUSTOMER SERVICE; AND FATS, OIL AND GREASE FEES AND RESCINDING RESOLUTIONS 03-14 AND 03-16 WHEREAS, the Yorba Linda Water District Rules and Regulations for Rendition of Water Service include a provision that developer fees and customer service charges shall be adopted by separate Resolution entitled Adopting Water/Sewer Developer; Customer Service; and Fats, Oils and Grease Fees; and, WHEREAS, the Board of Directors of the Yorba Linda Water District have, from time to time, adopted Ordinances and Resolutions to change the water/sewer developer fees and customer service fees for services provided by the District; and, WHEREAS, the latest Water/Sewer Developer; Customer Service Fees; and Fats, Oils and Grease are set forth in Resolution 08-04 adopted on May 29, 2008; and, WHEREAS, the fees collected pursuant to this Resolution shall be used to finance costs necessitated by the services provided by the District NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District to adopt Water Developer and Customer Service Fees as follows: Section 1: Fees identified in Section 3.2 of the Rules and Regulations for Water Service shall be as follows: 3.2.1 CONNECTION TO MAINS INSTALLED BEFORE AUGUST 11, 1988: $14.00 per linear foot $2,200.00 per fire hydrant 3.2.1.1 IRREGULAR PARCELS: $1,050.00 per acre 3.2.1.2 MINIMUM CHARGE $1,050.00 Section 2: Fees identified in Section 3.3 of the Rules and Regulations for Water Service shall be as follows: 3.3.1 RADIO READ METERS UP TO 2 INCHES: % inch: $628.00 1 Inch: $666.00 1 '/2 inch: $1,069.00 2 inch: $1,241.00 3.3.2 METERS LARGER THAN 2 INCHES:by estimate 3.3.3 TEMPORARY METERS $1,000.00 Section 3: Fees identified in Section 3.4 Service shall be as follows: 3.4.1 ADMINISTRATIVE FEE 3.4.2 of the Rules and Regulations for Water PLAN CHECK FEE: Number of Connections 1-10 11-20 21-30 31-40 41-50 51 and up 3.4.3 3.4.4 INSPECTION FEE: Number of Connections 1-10 11-20 21-30 31-40 41-50 51 and up $3,186.00 Fee Per Connection $539.00 $292.00 $202.00 $191.00 $135.00 $112.00 Fee Per Connection $1,241.00 $697.00 $485.00 $390.00 $331.00 $295.00 RECORDS AND BILLING FEE: $354.00 per connection 3.4.5 SINGLE SERVICE FEE: $1,609.00 Section 4: Fees identified in Section 3.7 of the Rules and Regulations for Water Service shall be as follows: 3.7.2 Temporary Untreated Water Fee:two (2) times District cost Section 5: Fees identified in Section 3.11 of the Rules and Regulations for Water Service shall be as follows: 3.11.1 Notice of Discontinuance: $20.00 3.11.2 Shut-off due to Non-Payment: $50.00 3.11.3 Re-establishing Service: $50.00 3.11.4 After-Hours Charge: $165.00 3.11.5 Tampered Locks: $80.00 3.11.6 Meter Removal & Replacement: $130.00 3.11.7 Deposit category: Amount Residential: $225.00 Non-Residential: 1 1/2 inch and under $450.00 2 inch and 3 inch $750.00 4 inch and over $2,500.00 Section 6: Fees identified in Section 3.21 of the Rules and Regulations for Water Service shall be as follows: 3.21 Meter Testing Fee: $105.00 Section 7: Fees identified in Section 5.5 of the Rules and Regulations for Water Service shall be as follows: 5.5.2 CHANGE IN METER SIZE: 2 inch $22.00 3 inch $42.00 4 inch $72.00 6 inch & larger $75.00 Section 8: Fees identified in Section 6.5.4 of the Rules and Regulations for Water Service shall be as follows: 6.5.4 Backflow Device Monitoring Fee: $29.00 per Device Section 9: The following are additional Water/Customer Service Fees: Auto Pay Refund $20.00 NSF Charge $25.00 New Account Fee $25.00 GIS Data Conversion Fee $100.00 Section 10: The fees adopted herein shall take effect on July 1, 2008 and hereby rescind Resolution No. 03-16. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District to adopt Sewer Developer and Customer Service Fees as follows: Section 1: Fees identified in Section 6.01 of the Rules and Regulations for Sewer Service shall be as follows: 6.01 A. Service Charge: Drainage Area 1 Drainage Area 2 B. Frontage Charge: but not less than C. Administrative Fee: D. Plan Check Fee: Number of Connections 1-10 11-20 21-30 31-40 41-50 51 and up E. Inspection Fee: Number of Connections 1-10 11-20 21-30 31-40 41-50 51 and up F. Records and Billing Fee: G. Single Service Fee: $1,660.00 per acre $1,450.00 per acre $53.00 per foot $3,975.00 per connection $1,673.00 Fee Per Connection $86.00 $46.00 $32.00 $30.00 $21.00 $18.00 Fee Per Connection $723.00 $402.00 $268.00 $167.00 $127.00 $87.00 $284.00 per connection $1,181.00 Section 2: The following are additional Water/Customer Service Fees: Auto Pay Refund $20.00 NSF Charge $25.00 New Account Fee $25.00 GIS Data Conversion Fee $100.00 Section 3: The fees adopted herein shall take effect on July 1, 2008 and hereby rescind Resolution No. 03-14. WHEREAS, in 2002, the Santa Ana Regional Water Quality Control Board enacted Rule R8-2002-0014 requiring all sewage agencies to adopt the requirements of a new Waste Water Discharge Requirement (WDR); and, WHEREAS, in 2006, the Santa Ana Regional Water Quality Control Board Rule R8- 2002-0014 was rescinded and a new statewide permit adopted based on R8-2002-0014; and, WHEREAS, the WDR and statewide permit require many municipalities, including the Yorba Linda Water District, to increase the level of maintenance, operations, and capital improvement repairs to their sewer systems, and to have in place a fats, oils, and grease control program; and, WHEREAS, on July 22, 2004 the Board of Directors adopted Ordinance 04-01, creating a Fats, Oils, and Grease (FOG) Control Program for Food Service Establishments (FSE's) in the City of Yorba Linda and portions of the cities of Anaheim„ Brea, and Placentia requiring a permit for sewer discharges which could contain fats, oils, and grease and imposing requirements for monitoring of and elimination of fats, oils, and grease from sewer discharges for such establishments; and, WHEREAS, Ordinance 04-01 authorizes the adoption by resolution of a FOG Waste Water Discharge Permit Fee and Grease Disposal Mitigation Fee to cover the costs of increased maintenance and administration of the sewer system as a result of the FSE's inability to remove FOG from its wastewater discharge, and to require FSE's to implement other programs that are considered appropriate to protect the District's sanitary sewer system; and, NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District to adopt the Fats, Oils, and Grease (FOG) Fees as follows: Section 1: The fees adopted for the Yorba Linda Water District Fats, Oils, and Grease Permit Program are as follows: A. Initial Permit and Application Fee $422.63 B. Annual/Renewal FOG Permit $286.10 C. Non-Compliance Fee $287.10 D. Mitigation Fee $1,645.98 (a) The District may by resolution, from time to time, revise and adjust the amount of said fees; and, (b) The District finds and determines that the fees set forth do not exceed the estimated reasonable cost to the District of providing such services; and, PASSED AND ADOPTED this 29th day of May, 2008 by the following called vote: AYES: NOES: ABSENT: ABSTAIN: President, John W. Summerfield Yorba Linda Water District ATTEST: Secretary, Michael A. Payne Yorba Linda Water District ITEM NO. 2- Account Overview Yorba Linda Water District Account #18611500 Funding Date: 10/25/2005 Portfolio Statistics as of: 4/30/2008 Account Characteristics: Portfolio Yield to Maturity 2.96% Total Unrealized Gains/(Losses) - Current: (10,323) Total Net Realized Gains/(Losses) - Since Inception: 496 Total Long-Term Investments: - Total Short Duration Investments/Money Market Secs: 17,794,845 Total Market Value: 17,794,845 Total Number of Issues in the Portfolio: 13 MARKET DATA Overnight Fed Funds Rate: 2.00% 6-Month T-Bill Yield: 1.62% 12-Month T-Note Yield: 1.99% WELLS CAPITAL MANAGEMENT Portfolio Summary Report Yorba Linda Water District 18611500 For the period : 04/01/08 to 04/30/08 Portfolio Characteristics Market Value: 17,794,844.94 % of Account Unrealized G /L: (10,322.50) 16.54% Yield To Maturity: 2.96% 8.39% Portfolio Duration: 0.06 Years 22.39% Avg. Days to Maturity: 42 52.69% Avg. Portfolio Credit Quality: Aal 0.00% Market Data 04/30/08 03/31/08 Yields 6 Month Treasury Bill: 1.64% 1.49% 2 Year Treasury Note: 2.26% 1.61% 5 Year Treasury Note: 3.03% 2.46% Fed Funds Target: 2.00% 2.25% Credit Qua 11111111111111111w, I P1 /MIG1/VMIG1 /A -1 8.4% Aaa /AAA 16.5% Aa /AA 13.7% A/A 8.7% Baa /BBB 0.0% Other 0.0% Cash /Overnights 52.7% Not Rated 0.0% 100.0% Portfolio Breakdown Effective Maturity Distribution 0.60 0.50 0.40 0.30 0.20 0.10 &P Moody's Ratings Ratings - Primary 0001 • • • • S&P Ratings - Secondary Fitch Ratings - Tertiary o/n 2 to 90 91 to 180 181 to 1 year 1 to 2 years > 2 years The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Market Value % of Account Agency Discount Note 2,943,550.00 16.54% Commercial Paper 1,492,253.89 8.39% Corporate Obligation 3,983,534.75 22.39% Money Market Fund 9,375,505.75 52.69% Pending_Cash 0.55 0.00% Total 17, 794, 844.94 100.00% Effective Maturity Distribution 0.60 0.50 0.40 0.30 0.20 0.10 &P Moody's Ratings Ratings - Primary 0001 • • • • S&P Ratings - Secondary Fitch Ratings - Tertiary o/n 2 to 90 91 to 180 181 to 1 year 1 to 2 years > 2 years The above information is an estimate of certain investment calculations and does not represent your audited statement of record. YORBA LINDA WATER DISTRICT Statement of Cash Flows /Earnings for April 2008 I - Beginning Period Balances As of 3/31/2008 Total Original Cost 18,299,078 + Net Amort/Accr to Date 83,763 = Adjusted Book Value: 18,382,841 • Accrued Interest Receivable 48,468 • Unrealized Gain/(Loss) (13,356) = Total Market Value Plus Accrued Interest 18,417,952 II: Period Income Earned + Ending Accrual - Begininning Accrual + Interest Received - Interest Paid at Purchase + Interest Received at Sale = Interest Earned in Period + (Amort) /Accr This Period = Monthly Portfolio Income + Contributions - Withdrawals + Realized Gain/(Loss) - Fees Paid This Period - Prior Period Unrealized Gain/Loss • End Of Period Unrealized Gain/Loss • Net Receipts/Deliveries in Kind • Adjustments = Net Change to the Portfolio =Total Market Value Plus Accrued Interest III: End of Period Balances Total Original Cost + Net Amort/Accr to Date = Adjusted Book Value • Accrued Interest Receivable • Unrealized Gain/(Loss) = Total Market Value Plus Accrued Interest Reconciliation Difference: Wells Capital Management 36,250 (48,468) 48,052 35,834 8,785 $ 44,620 (631,408) (3,102) (13,356) (10,323) 0.00 0.00 (622,691) 17,831,095 As of 4/30/2008 17,745,944 59,224 17,805,167 36,250 (10,323) 17,831,095 Holdings Report Securities Held as of. 4/30/08 on a Trade Date Basis Identifier Credit Ratings Par Value Security Description Coupon Final Effective Days Duration Market Price Market Market Value Holdings as YTM at Maturity to Eff Maturity Moody's S &P Fitch Interest Account or Reset 0.00 L Cash & Cash Equivalents (Original maturity of 90 days or less) 0 0,00% Cash 05/28/08 28 0.08 U.S. DOLLARS (0) PENDING CASH 1,497,900 8.42% 197% (0) 62 0.17 Money Mkt Securities 497,526 497,526 2.80% Agency Discount Note 07/09/08 70 0.19 313396XK4 AGY AGY AGY 1,500,000 FHLMC 0.000 05 /28/08 Commercial Paper 07/01/08 62 0.17 1247P2G16 P1 A -1+ NR 500,000 CAFCO LLC 0.000 07/01/08 29865LG91 P1 A -1+ NR 500,000 EUREKA SECURITIZATION CPDN 0.000 07/09/08 82124LG14 P1 A -1+ NR 500,000 SHEFFIELD RECEIABLES CPDN 0.000 07/01/08 Money Market Fund 1 0.00 VP7000038 9,375,506 WF ADV MONEY MKT TR #645 2.736 52.69% Cash & Cash Equivalents Total 12,375,506 90 0.25 11. Marketable Securities (Original maturity greater than 90 days) 699,126 699,244 IIA: Short Term Securities (Remaining maturity of less than 365 days) 3.01% 09/15/08 Corporate Securities 0.13 99.491 397,964 Corporate Obligation 2.24% 2.93% 05/29/08 38141EKG3 Aa3 AA- AA- 700,000 GOLDMAN SACHS GROUP INC 3.013 07/29/08 40429CCU4 Aa3 AA- AA- 400,000 HSBC FINANCE CORPORATION 2.930 09/15/08 52517PJ28 Al A+ AA- 400,000 LEHMAN BROTHERS HOLDINGS 3.115 05/29/08 59018YVZ1 Al A+ A+ 700,000 MERRILL LYNCH & CO 3.168 08/22/08 617446A82 Aa3 AA- AA- 650,000 MORGAN STANLEY 2.840 11/21/08 7591 EPAB6 A2 A A+ 450,000 REGIONS FINANCIAL CORPORA- 3.208 08/08/08 929903AQ5 Aa3 AA- AA- 700,000 WACHOVIA CORP 2.949 10/28/08 452,341 4,000,000 3.21% 10/28/08 Govt Securities Gov Agncy Obligation Money Mkt Securities Agency Discount Note 313588YRO AGY AGY AGY 1,450,000 FNMA Commercial Paper Short Term Securities Total 5,450,000 IIB: Long -Term Securities (Remaining maturity greater than 365 days) Corporate Securities Corporate Obligation 0.000 06/27/08 06/27/08 58 0.16 99.700 1,445,650 1,445,650 110 0.13 5,429,185 5,441,061 8.12% 5.26% 30.51% 3.62% The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 2 Yorba Linda Water District 18611500 Effective Days Duration Market Price Market Market Value Holdings as YTM at Maturity to Eff Value + Accrued Percentage of Purchase Maturity Interest Account or Reset 0.000 06/27/08 06/27/08 58 0.16 99.700 1,445,650 1,445,650 110 0.13 5,429,185 5,441,061 8.12% 5.26% 30.51% 3.62% The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 2 (0) (0) 0.00% 0.00% 0 0.00 0 0 0,00% 0.00% 05/28/08 28 0.08 99.860 1,497,900 1,497,900 8.42% 197% 07/01/08 62 0.17 99.505 497,526 497,526 2.80% 2.94% 07/09/08 70 0.19 99.440 497,202 497,202 2.79% 3.01% 07/01/08 62 0.17 99.505 497,526 497,526 2.80% 3.01% 05/01/08 1 0.00 100.000 9,375,506 9,399,880 52.69% 2.74% 1 0.00 12,365,660 12,390,034 52.69% 2.74% 07/29/08 90 0.25 99.875 699,126 699,244 3.93% 3.01% 09/15/08 138 0.13 99.491 397,964 399.429 2.24% 2.93% 05/29/08 29 0.08 99.900 399,601 401,747 2.25% 3.12% 08/22/08 114 0.03 98.932 692,523 696,773 3.89% 3.17% 11/21/08 205 0.06 99.535 646,976 647,489 3.64% 2.84% 08/08/08 100 0.02 99.781 449,013 452,341 2.52% 3.21% 10/28/08 181 0.24 99.762 698,331 698,389 3.92% 2.95% 129 0.12 3,983,535 3,995,411 22.39% 3.02% 0.000 06/27/08 06/27/08 58 0.16 99.700 1,445,650 1,445,650 110 0.13 5,429,185 5,441,061 8.12% 5.26% 30.51% 3.62% The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 1 of 2 Holdings Report Securities Held as of: 4/30/08 on a Trade Date Basis Identrfier Credit Ratings Par Value Moody's S&P Fitch Long Term Securities Total 0 Marketable Securities Total 5,450,000 17,825,506 Security Description Coupon Final Effective Days Maturity Maturity to Eff Maturity 0 110 42 0.06 17,794,845 17,831,095 100.00% 2.96 The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 2 of 2 Yorba Linda Water District 18611500 Duration Market Price Market Market Value Holdings as YTM at Value + Accrued Percentage of Purchase Interest Account or Reset 0.00 0 0 0.00% 0.00% 0.13 5,429,185 5,441,061 30.51% 3.62% 42 0.06 17,794,845 17,831,095 100.00% 2.96 The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page: 2 of 2 ITEM NO. 3 AGENDA REPORT Committee Meeting Date: May 13, 2008 To: Finance-Accounting Committee From: Michael A. Payne, General Manager Staff Contact: Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant Reviewed by General Counsel: N/A Budgeted: Funding Source: CEQA Account No: Compliance: N/A Estimated Costs: Subject: Investment Report for March 2008 N/A Total Budget: N/A N/A Job No: N/A Dept: Bus SUMMARY: Government Code Section 53607, et, seq., requires the person delegated to invest funds to make a quarterly report of the investments to the legislative body. DISCUSSION: I am submitting the March 2008 monthly investment report for your information. I will submit a formal report of the investments for Board action for the quarter ending March 31, 2008 upon approval of the Investment Report. Below is a chart summarizing the yields as well as terms and maturities for the month of March 2008: Avg. Avg. Portfolio Portfolio # of Avg. Term Month Yield With Out Yield With Days to of Portfolio in of 2008 Wells Capital Wells Capital Maturity Days March 2.29% 2.61% 50 15 Below is a chart comparing operating fund interest for current and prior fiscal years: Actuallnterest 03/31/07 03/31/08 Monthly, Operating Fund $ 12,229 $ 957 Year-to-Date, Operating Fund $154,640 $27,268 Budaet 2006/2007 2007/2008 Interest Budget, Operating Fund, March YTD $250,103 $64,500 Interest Budget, Operating Fund, annual $333,470 $86,000 Interest earned on investments is recorded in the Fund that owns the investment. Investment Summary Comparison The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: Fund Description 03/31/08 Annexation Fees $ 13,417,371 22.35% Water Fund -1,929,945 -3.21% 2003 Bond Fund 231,074 .39% 2008 Bond Fund 33,892,864 56.45% Sewer Fund 1,280,062 2.13% Imp. Dist. No. 1 3,874,431 6.45% Imp. Dist. No. 2 9.272.932 15.44% $60.0,38.789 10Q.00% PRIOR RELEVANT BOARD ACTION(S): These reports are presented to the Finance-Accounting Committee on a regular basis. Quarterly Investment Reports are presented to the Board of Directors. STAFF RECOMMENDATION: That the Finance-Accounting Committee receive and file the report. Yorba Linda Water District Investment Portfolio Report March 31, 2008 Market % Value Cost of Total Institution Cash & Checkine Accounts: $ (95,698) $ (95,698) Wells Fargo Bank 1,200 1,200 Imprest Cash $ (94,498) $ (94,498) -0.16% Total Monev Market Accounts: $ 801,608 $ 801,608 251,057 251,057 $ 1,052,665 $ 1,052,665 Wells Fargo Money Market Wells Fargo MM/Annexation 1.75% Total Percent Investment Maturity Yield Date Date N/A 0.00% 1.27% N/A 1.27% 1.27% 1.40% N/A $ 958,167 $ 958,167 1.60% Sub-total Ore Co Commingled Investment Pool: $ - $ - 0.00% Orange County Commingled Fund California Arbitraee ML-mt. 1 $ 6,538,731 $ 6,538,731 Monev Market Account: $ 33,892,864 $ 33,892,864 231,074 231,074 $ 34,123,938 $ 34,123,938 'roeram: 10.90% California Arbitrage Mgmt. Program 3.29% US Bank 2008 Revenue Bond 2.13% US Bank 2003 Revenue Bond 1.59% 56.87% 2.13% $ 41,620,836 $ 41,620,836 69.36% Sub Total Investments Individual Manaeement Account: $ 18,369,484 $ 18,382,841 30.64% Wells Capital Management $ 59,990,320 $ 60,003,677 100% Total Investments N/A N/A 2.29% 3.33% N/A 2.61% Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. Sandi Van Etten, Senior Accountant 3/31/08 ITEM NO.~ Yorba Linda Water District Scope of Cash -Out Audit for Retirement of General Manager The Board of Director's would like an independent audit performed solely to assist with the respect of evaluating the accountability for cash and investments and the final compensation payment in conjunction with the retirement of the General Manager. The surprise reconciliation should be performed on the following cash and investment accounts: • Checking Account - Wells Fargo Bank • Money Market Account - Wells Fargo Bank • Investments - Wells Capital Management • US Bank/Revenue Bonds - COPS 2003 & 2008 • California Asset Management Program (CAMP) • Bank of America Credit Card • Orange County Commingled Fund In addition, select the General Manager's final pay check to recalculate and test the following: • Agree the pay rate to the personnel file. • Agree number of hours worked. • Agree sick, vacation and comp hours to the worksheet maintained in payroll. • Agree the auto allowance to the "Employee Agreement for the General Manager". ITEM NO. Vr RESOLUTION NO 07-11 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT MODIFYING DISTRICT PURCHASING POLICY AND RESCINDING RESOLUTION NO. 02-01 WHEREAS, the District established a Purchasing Policy by adopting Resolution 88-12 on March 24, 1998; and WHEREAS, the District modified the Purchasing Policy by rescinding Resolution 88-12 and adopting Resolution 91-13 on May 16, 1991; and WHEREAS, the District modified the Purchasing Policy by rescinding Resolution 91-13 and adopting Resolution 02-01 on June 13, 2002; and WHEREAS, from time to time it is necessary to review the Purchasing Policy and to make modifications that reflect current District policies and economic conditions. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Yorba Linda Water District shall establish the following policies: Section 1: Procurement Policy The following standards and procedures will be used for the acqui sition or leasing of personal property; repair or modification of District equipment or structures; or obtaining labor, materials, services or supplies as identified in the budget: Dollar Amount Procedure 62oroval $0-5,000 1 Written Quote Dept. Manager $5,001-$25,000 2 Written Quotes Dept. Mgr/Asst. GM $25,001-$75,000 3 Written Quotes General Manager >$75,001 Competitive Bid Board of Directors Section 2: Capital Projects Policy The following standards and procedures will be used for fire hydrants, water mains, reservoirs, etc. as identified in the budget: Dollar Amount $0-$25,000 $25,001-$100,000 >$100,001 Procedure 2 Written Quotes 3 Written Quotes Competitive Bid ARDroval Dept. Manager General Manager Board of Directors Section 3: Change Order Policy The following standards and procedures will be used for capital projects where the change order does not alter project completion time: Dollar Amount Procedure Approval 5% of Project Cost Notify GM Dept. Mgr/Asst. GM $0-$50,000 Notify GM Dept. Mgr/Asst. GM 10% of Project Cost Notify BOD GM $0-$75,000 Notify BOD GM $75,001 and over Notify BOD BOD >10%of Project Cost Notify BOD BOD Section 4: Contractual Services Policy The following standards and procedures will be used for professional services such as engineering consultant, legal counsel, auditors, etc as identified in the budget. Dollar Amount $0-$5,000 $5,001-$25,000 $25,001-$75,000 >$75,001 Procedure 1 Written Quote 2 Written Quotes 3 Written Quotes Competitive Bid Approval Dept. Mgr Dept. Mgr/Asst. GM GM BOD Section 5: Emergency Policy The following standards and procedures will be used in emergency situations: Dollar Amount Procedure Approval $0-$100,000 Next or Special Mtg. GM >$100,001 Next or Special Mtg. BOD Requirement: Those events which require immediate extraordinary action to protect the public health, safety, welfare and property. Ratification by the Board at the next meeting or the earliest special meeting that can be called. *In all cases where notification is required, a written memo shall be provided stating the reasons for the approval by the designee. Section 6 Effective: The Purchasing Policy adopted herein shall take effect immediately upon adoption of this Resolution. Section 7 Rescinding: That Resolution No. 02-01 and conflicting Minute Orders are hereby rescinded upon adoption of this resolution. PASSED AND ADOPTED this 28th day of June, 2007 by the following called vote: AYES: NOES; ABSENT: ABSTAIN: Secretary, Michael A. Pay e Yorba Linda Water District President, Ric Collett Yorba Linda Water District ITEM NO. ID, ?V. MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE April 8, 2008 A meeting of the Yorba Linda Water District Finance-Accounting Committee was called to order by Committee Chairman Mike Beverage at 4:05 p.m. The meeting was held at District Headquarters, 4622 Plumosa Drive, Yorba Linda. DIRECTORS PRESENT: Director Michael J. Beverage, Chair Director John W. Summerfield Alternate: Director William R Mills STAFF PRESENT: Michael Payne, General Manager Ken Vecchiarelli, Assistant Gen. Manager Diane Cyganik, Finance Director Sandi Van Etten, Senior Accountant ACTION ITEMS: 1. Consider the quarterly Financial Statements for the first and second quarters of FY 2007/2008. Finance Director Cyganik presented the Quarterly Financial Statements for the first and second quarters of fiscal year 2007/2008 ending September 30 and December 31, 2007. The Committee asked a few questions which were all answered. The Committee will recommend that the financial statements for the quarters ending September 30 and December 31, 2007 be received and filed by the Board of Directors. 2. Consider the monthly Financial Statements for the seventh and eighth months ending January 31 and February 29, 2008, respectively. The monthly statements were reviewed and the Committee accepted them as presented. DISCUSSION ITEMS: 3. Review of the Investment Report ending February 29, 2008. The Investment Report for month ending February 29, 2008 was discussed and accepted as presented. 4. Status report on Wells Capital portfolio investments as of March 31, 2008. The committee asked Keith Khorey for an update on the status of the District's investments. Mr. Khorey said the overall bond market is firmer than it was since the Bears Sterns issue. In general, the financial markets have increased since last month and all of the remaining Short-Term Corporate Securities are rated at A or AA. It was noted that there are three options: (1) sell everything with a small loss; (2) sell the investments at the coupon reset date and put the proceeds in a money market fund; or (3) sit tight and see which direction the market takes. Mr. Khorey recommended, based on our current investment policy, sitting tight. However, if the • committee chose to reconsider the District's investment policy, he might have a different recommendation. The decision was made to let Wells Capital do what we pay them to do, based on our current investment policy and objectives. 4- 5. Reporting of Significant Event in Connection with the Continuing Disclosure • Obligations on the 2003 Certificates of Participation. A conference call and memo from Fieldman Rolapp & Associates noted that the credit rating of the FGIC Insurance Company has been downgraded, and that the rating downgrades are not a reflection of the District's ability to pay principal and interest on the 2003 Certificates. The reason for the reporting disclosure was to do our due diligence in filing A Significant Event Notification with the Nationally Recognized Exchange Commission pursuant to compliance with the Security Exchange Commission (SEC) Rule 15c2-12, Section 5(C). ADJOURNMENT: The Committee adjourned at approximately 5:05 p.m. The next Finance-Accounting Committee meeting is scheduled for May 13th at 4:00 p.m. at the District's Administration building, 1717 E Miraloma Avenue, Placentia, CA. • • -2-