HomeMy WebLinkAbout2016-10-27 - Board of Directors Meeting Agenda Packet
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, October 27, 2016, 8:30 AM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
Ric Collett, President
Michael J. Beverage, Vice President
Phil Hawkins
Robert R. Kiley
Gary T. Melton
4. ADDITIONS/DELETIONS TO THE AGENDA
5. INTRODUCTIONS AND PRESENTATIONS
5.1. MWDSC/MWDOC Director's Report
6. PUBLIC COMMENTS
Any individual wishing to address the Board is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment
when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited
to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three
minutes.
7. CONSENT CALENDAR
All items listed on the consent calendar are considered to be routine matters, status reports, or documents
covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion.
There will be no discussion on the items unless a member of the Board, staff, or public requests further
consideration.
7.1. Minutes of the Board of Directors Special Meeting held August 17, 2016
Recommendation: That the Board of Directors approve the minutes as presented.
7.2. Minutes of the Board of Directors Regular Meeting held August 25, 2016
Recommendation: That the Board of Directors approve the minutes as presented.
7.3. Minutes of the Board of Directors Regular Meeting held September 8, 2016
Recommendation: That the Board of Directors approve the minutes as presented.
7.4. Minutes of the Board of Directors Regular Meeting held September 22, 2016
Recommendation: That the Board of Directors approve the minutes as presented.
7.5. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize disbursements in
the amount of $1,733,824.79.
7.6. Budget to Actual Reports for the Months Ending July 31, 2016 and August 31, 2016
Recommendation: That the Board of Directors receive and file the Budget to
Actual Reports for the Months Ending July 31, 2016 and August 31, 2016.
7.7. Cash and Investment Report for Month Ending September 30, 2016
Recommendation: That the Board of Directors receive and file the Investment
Reports for the Month Ending September 30, 2016.
7.8. Directors and General Manager Fees and Expenses Report for First Quarter FY
2016/17
Recommendation: That the Board of Directors receive and file the Directors and
General Manager Fees and Expenses Report for First Quarter FY 2016/17.
7.9. Terms and Conditions for Water and Sewer Service with National Community
Renaissance
Recommendation: That the Board of Directors approve the Terms and Conditions
for Water and Sewer Service with National Community Renaissance, Job No.
201613.
7.10. Change Order No. 1 for Well No. 21 Wellhead Equipping Project
Recommendation: That the Board of Directors approve Change Order No. 1 in the
amount of $24,957.41 (a credit to the District) and no additional calendar days to
Pascal and Ludwig Constructors for construction of the Well No. 21 Well Head
Equipping Project, Job No. 200711.
7.11. Change Order No. 1 for Richfield Road Water Main Project
Recommendation: That the Board of Directors approve Change Order No. 1 for
60 additional calendar days to TBU Construction Inc. for construction of
the Richfield Road Water Main Project, Job No. 2014-23.
7.12. Sole-Source Agreement for Construction-Support Services for the Fairmont Booster
Pump Station Project
Recommendation: That the Board of Directors authorize execution of a Professional
Services Agreement with Lee & Ro, Inc., in the amount not to exceed $65,380 for
Construction Support and Special Inspection Services for construction of the
Fairmont Booster Station Upgrade Project, Job No. 2010-11B.
7.13. Claim for Damages Filed by Tracey Pratt
Recommendation: That the Board of Directors reject and deny the claim filed by
Tracey Pratt.
8. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board discussions are needed prior to
formal Board action.
8.1. Debt Management Policy
Recommendation: That the Board of Directors adopt Resolution No. 16-19 Setting
Forth a Debt Management Policy.
9. REPORTS, INFORMATION ITEMS, AND COMMENTS
9.1. President's Report
9.2. Directors' Reports
· OCSD State of the District - October 14, 2016 (Collett/Hawkins/Kiley)
· YL State of the City - October 20, 2016 (Hawkins/Kiley/Melton)
· CA-NV AWWA Conference - October 24-26, 2016 (Kiley)
9.3. General Manager's Report
9.4. General Counsel's Report
9.5. Future Agenda Items and Staff Tasks
10. COMMITTEE REPORTS
10.1. Interagency Committee with MWDOC and OCWD
(Collett/Melton)
· Next meeting scheduled November 22, 2016 at 4:00 p.m.
10.2. Joint Agency Committee with City of Yorba Linda
(Collett/Beverage)
· Minutes of the meeting held October 26, 2016 at 11:00 a.m. (To be provided when
available.)
· Next meeting yet to be scheduled.
10.3. Interagency Committee with City of Placentia and Golden State Water Company
(Collett/Kiley)
· Next meeting yet to be scheduled.
10.4. Citizens Advisory Committee
(Melton)
· Minutes of the meeting held October 24, 2016 at 8:30 a.m. (To be provided when
available.)
· Next meeting scheduled November 28, 2016 at 8:30 a.m.
11. INTERGOVERNMENTAL MEETINGS
11.1. YL City Council - October 18, 2016 (Beverage)
11.2. MWDOC Board - October 19, 2016 (Melton)
11.3. OCWD Board - October 19, 2016 (Kiley)
11.4. OCSD Board - October 26, 2016 (Kiley/Beverage)
11.5. YL Planning Commission - October 26, 2016 (Hawkins)
12. BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1. Meetings from October 14, 2016 - November 30, 2016
13. CONFERENCES, SEMINARS, AND SPECIAL EVENTS
This section of the agenda is for the Board of Directors to authorize Director attendance at the listed events.
13.1. YL Town Center Groundbreaking Ceremony - November 1, 2016
Recommendation: That the Board of Directors approve Director attendance at this
event if desired.
14. CLOSED SESSION
The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is
excused during these discussions.
14.1. Conference with Legal Counsel - Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California
Government Code
Name of Case: Irvine Ranch Water District vs. Orange County Water District (OC
Superior Court - Case No. 00858584)
14.2. Conference with Legal Counsel - Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California
Government Code
Name of Case: City of Yorba Linda vs. Nicola Saba, et al. (OC Superior Court - Case
No. 00847807)
14.3. Conference with Legal Counsel - Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California
Government Code
Name of Case: City of Yorba Linda vs. Harry Schlitz, et al. (OC Superior Court - Case
No. 00847840)
14.4. Public Employee Performance Evaluation
Pursuant to Section 54957 of the California Government Code
Title: General Manager
15. ADJOURNMENT
15.1. The next Regular Board of Directors Meeting will be held Thursday, November 10, 2016
at 8:30 a.m.
Items Distributed to the Board Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for
public inspection in the lobby of the District’s business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870,
during regular business hours. When practical, these public records will also be made available on the District’s internet
website accessible at http://www.ylwd.com/.
Accommodations for the Disabled
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 7.1
AGENDA REPORT
Meeting Date: October 27, 2016
Subject:Minutes of the Board of Directors Special Meeting held August 17, 2016
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2016-08-17_-_Minutes_-_BOD.doc Minutes Minutes
Minutes of the YLWD Board of Directors Special Meeting Held August 17, 2016 at 4:30 p.m. 1
2016-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Wednesday, August 17, 2016, 4:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The August 17, 2016 Yorba Linda Water District Board of Directors Special
Meeting was called to order by President Collett at 4:30 p.m. The meeting was
held in the Board Room at the District’s Administration Building located at 1717
East Miraloma Avenue in Placentia, California 92870.
2. PLEDGE OF ALLEGIANCE
Director Hawkins led the pledge.
ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Ric Collett, President Marc Marcantonio, General Manager
Michael J. Beverage, Vice President Steve Conklin, Engineering Manager
Phil Hawkins John DeCriscio, Operations Manager
Robert R. Kiley Gina Knight, Human Resources/Risk Manager
Gary T. Melton Delia Lugo, Finance Manager
Damon Micalizzi, Public Information Manager
Art Vega, Information Technology Manager
Annie Alexander, Executive Secretary
Cindy Botts, Water Cons Supvr/Mgmt Analyst
Laurie McAllister, Records Mgmt Admin
Kelly McCann, Senior Accountant
Malissa Muttaraid, Public Affairs Rep
OTHER ATTENDEES
Andrew Gagen, Partner, Kidman Law LLP
Sanjay Gaur, Manager, Raftelis Financial Consultants
Khanh Phan, Senior Consultant, Raftelis Financial Consultants
4. PUBLIC COMMENTS
None.
Minutes of the YLWD Board of Directors Special Meeting Held August 17, 2016 at 4:30 p.m. 2
5. DISCUSSION ITEMS
5.1. 2016 Update of Water Financial Plan
Mrs. Lugo explained that during the previous fiscal year, the State Water
Resources Control Board (SWRCB) had imposed conservation mandates
on water retailers in order to promote state-wide conservation and reduce
water waste. YLWD’s conservation mandate was set at 36%. As such,
the District’s water rates included in the 2015 Water and Sewer Rate
Study were based on a 36% reduction in volumetric revenue in the FY
2015/16 base year. Due to a recent change in SWRCB’s regulations, the
District was able to self-certify at a 0% conservation mandate. This
modification is projected to increase customer consumption by
approximately 12% for FY 2016/17 as compared to FY 2015/16. During
June, YLWD entered into an agreement with Raftelis Financial
Consultants to update the District’s water fund financial model due to the
decreased conservation mandate. Staff provided Raftelis with the
required data to update the model in order to determine the long-term
financial impact on the District. This included the water rates adopted by
Resolution No. 16-10 which were used for the base year. Mrs. Lugo then
introduced Mr. Sanjay Gaur and Mrs. Khanh Phan from Raftelis who were
in attendance to present the results and recommendations of their
analysis and receive feedback from the Board.
Mr. Gaur reviewed the agenda for his presentation and explained the
purpose for reserves. He commented on the capital cost and complexity
of water distributions systems and the inherent risks. He noted that the
District’s financial policies should address predictable, unpredictable, and
unknown risks. Mr. Gaur explained the importance of having financial
policies that maintain solvency, provide guidelines for sound long-term
management, and enhance transparency. He further commented on the
purpose of reserves, reviewed the District’s existing reserve policy as
compared to the industry standard, and summarized each of the financial
scenarios which were evaluated. He also provided a definition of pass-
through charges and noted that they had been excluded in all 3 scenarios.
Mr. Gaur then reviewed each of the scenarios in detail including the
impacts on water revenue and debt coverage, projected water reserves,
the Water Operating Financial Plan, and the Water Capital Improvement
Plan (CIP). Mr. Gaur and Mrs. Phan then demonstrated additional
scenarios as requested by the Board utilizing the financial model. Mrs.
Lugo noted that pay-off of the District’s $7M line of credit with Wells Fargo
had been incorporated into the model for FY 2016/17 and that funding for
future CIP related expenses was identified as pay-as-you-go. Mr. Gaur
then responded to questions from the Board.
Minutes of the YLWD Board of Directors Special Meeting Held August 17, 2016 at 4:30 p.m. 3
Mr. Ben Parker, resident, requested demonstration of the debt coverage
ratio should the District’s debt be reduced by half. Related discussion
followed. Mr. Gaur and the Board responded to questions from Mr. Parker
regarding analysis of the cost of service, adjusting the District’s business
model, and paying off and/or refinancing the District’s bonds. Mr. Gaur
and Mrs. Phan then demonstrated additional scenarios for Mr. Parker
using the financial model.
Mrs. Cristy Parker, resident, asked for clarification regarding the District’s
current debt coverage ratio. Mrs. Lugo stated that it was 110% but that
125% is considered industry standard.
Mr. Gaur then responded to questions from the Board regarding the
number of other agencies Raftelis had been working with on similar
issues, water rate trends, and evaluating a tiered rate structure using the
financial model.
Mrs. Lugo stated that Raftelis would be providing a second presentation at
a future meeting after which staff will request further direction from the
Board. The Board and staff then discussed revising the District’s reserves
policy and updating the District’s strategic plan.
Mr. Gaur and Mrs. Phan left the meeting at this time.
5.2. Draft Updates to Conservation Ordinance
Mr. Micalizzi reviewed the purpose of the District’s water conservation
ordinance and requested feedback from the Board regarding the revised
version included in the agenda packet. The Board then discussed the
following: appropriate drought response level for the prohibition of
filling/refilling of pools and spas; potential exceptions from penalties for
facilities that recycle their water; integrating the administrative penalty
ordinance with the water conservation ordinance; maintenance of
landscaping necessary for fire protection; time limits on outdoor irrigation;
potential extension of the Governor’s drought emergency declaration;
managing the impact of conservation on the District’s distribution system;
prohibition of non-recirculating ornamental fountains; identification of
exempt irrigation devices; and the refilling of ornamental ponds or lakes.
Following discussion, Mr. Micalizzi noted that this matter would be brought
back to the Board for further review at a future meeting.
Mrs. Cristy Parker, resident, commented on the difficulty of enforcing time
limits on outdoor irrigation and incorporating some flexibility in the revised
ordinance. Mrs. Botts provided a brief overview of exemptions contained
in the current ordinance related to outdoor irrigation and associated
devices.
Minutes of the YLWD Board of Directors Special Meeting Held August 17, 2016 at 4:30 p.m. 4
6. ADJOURNMENT
6.1. The meeting was adjourned at 6:09 p.m. The next Regular Board of
Directors Meeting will be held Thursday, August 25, 2016 at 8:30 a.m.
Annie Alexander
Assistant Board Secretary
ITEM NO. 7.2
AGENDA REPORT
Meeting Date: October 27, 2016
Subject:Minutes of the Board of Directors Regular Meeting held August 25, 2016
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2016-08-25_-_Minutes_-_BOD.doc Minutes Minutes
Minutes of the YLWD Board of Directors Regular Meeting Held August 25, 2016 at 8:30 a.m. 1
2016-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, August 25, 2016, 8:30 a.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The August 25, 2016 Regular Meeting of the Yorba Linda Water District Board of
Directors was called to order by President Collett at 8:30 a.m. The meeting was
held in the Board Room at the District’s Administration Building located at 1717
East Miraloma Avenue in Placentia, California 92870.
2. PLEDGE OF ALLEGIANCE
President Collett led the pledge.
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Ric Collett, President Steve Conklin, Engineering Manager
Mike Beverage, Vice President John DeCriscio, Operations Manager
Phil Hawkins Gina Knight, Human Resources/Risk Manager
Gary Melton Delia Lugo, Finance Manager
Annie Alexander, Executive Secretary
DIRECTORS ABSENT Cindy Botts, Water Cons Supvr/Mgmt Analyst
Bob Kiley Laurie McAllaster, Records Mgmt Admin
Malissa Muttaraid, Public Affairs Rep
Rick Walkemeyer, Info Systems Admin
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
Gene Hernandez, Councilmember, City of Yorba Linda
Robert Porr, Senior Vice President, Fieldman Rolapp & Associates
4. ADDITIONS/DELETIONS TO THE AGENDA
4.1. Pay Off of Line of Credit with Wells Fargo Bank
Mr. Conklin requested to add this matter to the agenda as Item No. 7.A. as
relevant information came to the District’s attention subsequent to posting
the agenda which required immediate action.
Minutes of the YLWD Board of Directors Regular Meeting Held August 25, 2016 at 8:30 a.m. 2
Director Beverage made a motion, seconded by Director Hawkins, to add
this matter to the agenda as Item No. 7.A. as relevant information came to
the District’s attention subsequent to posting the agenda which requires
immediate action. Motion carried 4-0-0-1 with Director Kiley being absent.
5. INTRODUCTIONS AND PRESENTATIONS
5.1. MWDSC/MWDOC Director’s Report
None.
6. PUBLIC COMMENTS
None.
7. CONSENT CALENDAR
Director Beverage made a motion, seconded by Director Hawkins, to approve the
Consent Calendar. Motion carried 4-0-0-1 with Director Kiley being absent.
7.1. Minutes of the Board of Directors Special Meeting held June 14, 2016
Recommendation: That the Board of Directors approve the minutes as
presented.
7.2. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $1,262,552.16.
7. ACTION CALENDAR
7.A. Pay Off of Line of Credit with Wells Fargo Bank
Mrs. Lugo explained that she had received correspondence from Wells
Fargo requesting that the District pay off the line of credit (LOC) or
proceed with its request to extend the maturity date. She further
explained that in September 2012, the District had entered into a $7M
LOC with Wells Fargo. The LOC agreement states that borrowings are
due and payable within 3 years, with the option of two single year
extensions of the maturity date. During FY 2014/15, the District exercised
its first option to extend the maturity date to September 30, 2016. In
conjunction with the budget process for FY 2016/17, staff contacted Wells
Fargo and expressed an interest in exercising the second option to extend
the maturity date to September 24, 2017. In August, staff received a
quote from Wells Fargo stating that the cost of extending the LOC’s
maturity date was estimated to be up to $25K. Additionally, Wells Fargo
requested that the District pay down the principal amount by $3.45M and
make monthly payments in the amount of $200K for the next year,
followed up with a balloon payment of remaining principal on the new
Minutes of the YLWD Board of Directors Regular Meeting Held August 25, 2016 at 8:30 a.m. 3
maturity date. Staff performed an analysis of the projected fees and
interest expense involved with extending the maturity date versus forgoing
the request and paying off the outstanding principal by September 30,
2016. Staff also contacted Mr. Robert Porr, the District’s financial advisor
from Fieldman Rolapp, to discuss the cost/benefit analysis in relation to
YLWD’s future review by Fitch Ratings and the potential advance
refunding of the 2008 Certificates of Participation (COP). Either option
will require the District to draw down funds from the Water Capital Projects
Reserve, effecting YLWD’s overall projected average daily cash on hand
for budgeted operating and capital expenses, as well as annual debt
service principal and interest payments. Based on analysis performed by
and discussions with Mr. Porr, the option with the greatest benefit to the
District would be to pay off the full principal amount due on the LOC by the
end of September.
Mr. Porr then responded to questions from the Board regarding the impact
on the District’s reserves and debt ratio. Mrs. Lugo noted that the District
would still have enough days of cash on hand for the next 2 fiscal years in
order to maintain its current ratings with Fitch and Standard & Poors.
Mr. Ben Parker, resident, asked for clarification regarding the relevant
information which came to the District’s attention subsequent to posting of
the agenda. Mrs. Lugo explained that due to timing issues, Wells Fargo
needed the Board to make a decision by the end of the month. Mr. Parker
then commented on the financial analysis included with the staff report
and suggested that the Board consider using the $7M to pay off a portion
of the District’s bond debt rather than paying off the LOC. Mr. Poor
provided an overview of the process, costs and analysis associated with
Mr. Parker’s suggestion and why Fieldman Rolapp was recommending
that the District pay off the LOC.
The Board and staff discussed consideration of obtaining another line of
credit or short term loans during the strategic planning process in early
2017.
Mr. Parker then commented on the terms of the agreement with Wells
Fargo and previous efforts to refinance the 2008 COP. He also suggested
that the Board consider acquiring bonds to pay off the LOC.
Director Hawkins made motion, seconded by Director Beverage, to
authorize staff to pay off the outstanding $7 million principal, accrued
interest, and affiliated fees pertaining to the 2012 Line of Credit
Agreement between Yorba Linda Water District and Wells Fargo Bank
which is due and payable on September 30, 2016.
Minutes of the YLWD Board of Directors Regular Meeting Held August 25, 2016 at 8:30 a.m. 4
The Board requested that at a future meeting, staff utilize the financial
model to demonstrate various financial scenarios including one or more of
the following factors: pay off of the LOC; $9 reduction from the current
water rate for 1” meters; pay off of the 2012A COP; and reducing reserves
by $5M.
Motion carried 4-0-0-1 with Director Kiley being absent.
8. REPORTS, INFORMATION ITEMS, AND COMMENTS
8.1. President's Report
None.
8.2. Directors' Reports
Directors Hawkins and Melton reported on their attendance at the
following events. Director Kiley was not present to provide his report.
Gun Club Road Linear Park Ribbon Cutting Ceremony – August 13, 2016
OCWD/OCSD Community Open House – August 13, 2016
8.3. General Manager's Report
Mr. Conklin expressed appreciation for the City of Yorba’s cooperative
efforts associated with the Yorba Linda Blvd Pump Station which needed
to be constructed in advance of Gun Club Road Linear Park. He then
asked each of the managers or their designees to provide a report
regarding activities within their respective departments.
Mr. DeCriscio reported on water demands during the previous month.
Mrs. Lugo reported that the District’s auditors were on site conducting field
work for the FY 2015/16 audit. Following this meeting, staff will be
contacting Wells Fargo regarding next steps for paying off the LOC.
Mr. Walkemeyer reported that IT had fixed an issue with the District’s mail
server over the weekend.
Mrs. Knight reported on the status of an injured employee. She noted that
ACWA/JPIA would be reimbursing the District approximately $10K for the
damaged vehicle.
Mrs. Botts reported on the status of legislative affairs. She stated that
staff was continuing to analyze the District’s fuel modification zone areas.
This will allow the District to apply for credits from the State Water
Resources Control Board (SWRCB) in the event that water rationing is
imposed. She also reported that the website update would be live soon,
that staff was receiving positive comments on the latest edition of the
Minutes of the YLWD Board of Directors Regular Meeting Held August 25, 2016 at 8:30 a.m. 5
newsletter, and that SWRCB had approved the District’s self-certification
application for a 0% conservation mandate.
Mr. Conklin reported on the status of various construction projects and
noted that the District’s lease agreement for the W ell 22 site would be
considered at OCWD’s Property Management Committee meeting the
next day.
8.4. General Counsel's Report
None.
8.5. Future Agenda Items and Staff Tasks
None.
9. COMMITTEE REPORTS
9.1. Interagency Committee with MWDOC and OCWD
(Collett / Melton)
Next meeting is scheduled September 27, 2016 at 4:00 p.m.
9.2. Joint Agency Committee with City of Yorba Linda
(Collett / Beverage)
Minutes of the meeting held August 23, 2016 at 11:00 a.m. will be
provided when available. Director Beverage provided a brief report
regarding matters discussed during the meeting including approval
of the Districts self-certification application, options for use of
administrative penalties, and water conservation programs and
incentives for District customers.
Next meeting is scheduled September 20, 2016 at 10:00 a.m.
9.3. Interagency Committee with City of Placentia and Golden State Water Company
(Collett / Kiley)
Minutes of the meeting held August 9, 2016 at 4:00 p.m. were
provided in the agenda packet.
Next meeting is yet to be scheduled.
9.4. Citizens Advisory Committee
(Melton)
Next meeting is scheduled August 29, 2016 at 8:30 a.m.
Minutes of the YLWD Board of Directors Regular Meeting Held August 25, 2016 at 8:30 a.m. 6
10. INTERGOVERNMENTAL MEETINGS
10.1. MWDOC Board – August 17, 2016 (Staff)
Staff did not attend this meeting.
10.2. OCSD Board – August 24, 2016 (Kiley/Beverage)
Director Kiley was not present to provide a report on this meeting.
11. BOARD OF DIRECTORS ACTIVITY CALENDAR
11.1. Meetings from August 26, 2016 – September 30, 2016
The Board reviewed the activity calendar and made no changes.
12. CLOSED SESSION
The meeting was adjourned to Closed Session at 9:07 a.m. All Directors in
attendance were present. Also present was Mr. Gagen and Mrs. Knight.
12.1. Conference with Legal Counsel – Pending Litigation
Pursuant to Subdivision (a) of Section 54956.9 of the California
Government Code
Name of Case: Kent Ebinger and Yorba Linda Taxpayers Association
vs. Yorba Linda Water District (OC Superior Court –
Case No. 00829548)
12.2. Conference with Legal Counsel – Pending Litigation
Pursuant to Subdivision (a) of Section 54956.9 of the California
Government Code
Name of Case: Irvine Ranch Water District vs. Orange County Water
District (OC Superior Court – Case No. 00858584)
12.3. Public Employee Performance Evaluation
Pursuant to Section 54957 of the California Government Code
Title: General Manager
The Board reconvened in Open Session at 9:40 a.m. No action was taken during
Closed Session that was required to be reported under the Brown Act.
Minutes of the YLWD Board of Directors Regular Meeting Held August 25, 2016 at 8:30 a.m. 7
13. ADJOURNMENT
13.1. The meeting was adjourned at 9:41 a.m. The next Regular Board of
Directors Meeting will be held Thursday, September 8, 2016 at 8:30 a.m.
Annie Alexander
Assistant Board Secretary
ITEM NO. 7.3
AGENDA REPORT
Meeting Date: October 27, 2016
Subject:Minutes of the Board of Directors Regular Meeting held September 8, 2016
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2016-09-08_-_Minutes_-_BOD.doc Minutes Minutes
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 1
2016-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, September 8, 2016, 8:30 a.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The September 8, 2016 Regular Meeting of the Yorba Linda Water District Board
of Directors was called to order by President Collett at 8:30 a.m. The meeting
was held in the Board Room at the District’s Administration Building located at
1717 East Miraloma Avenue in Placentia, California 92870.
2. PLEDGE OF ALLEGIANCE
Director Kiley led the pledge.
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Ric Collett, President Marc Marcantonio, General Manager
Mike Beverage, Vice President Steve Conklin, Engineering Manager
Bob Kiley John DeCriscio, Operations Manager
Gina Knight, Human Resources/Risk Manager
DIRECTORS ABSENT Damon Micalizzi, Public Information Manager
Phil Hawkins Art Vega, Information Technology Manager
Gary Melton Annie Alexander, Executive Secretary
Cindy Botts, Water Cons Supv/Mgmt Analyst
Laurie McAllaster, Records Mgmt Admin
Kelly McCann, Senior Accountant
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
Brett Barbre, Director, MWDSC and MWDOC
Gene Hernandez, Councilmember, City of Yorba Linda
Cyrus Torabi, Attorney, Stradling Yocca Carlson & Rauth
4. ADDITIONS/DELETIONS TO THE AGENDA
None.
5. INTRODUCTIONS AND PRESENTATIONS
5.1. MWDSC/MWDOC Director’s Report
None.
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 2
6. PUBLIC COMMENTS
Mr. Al Nederhood, resident, commented on the FYS 2015/16 and 2016/17
budgets, the water rate increase, anticipated penalties from the State, and
revenue received in FY 2015/16. He also remarked on the budgeted amounts for
water related costs and supplies and services in the FY 2016/17 budget, as well
as the recall election.
Mr. Brooke Jones, resident, commented on the anticipated shortfall due to the
drought, the water rate increase and its impact on customers with fixed incomes
and large lots, and the potential impact of the Anaheim Sustainability Center on
nearby residences, the Santa River and groundwater in the area.
Mr. Ed Rakochy, resident, commented on a previous edition of the District’s
newsletter regarding the water/sewer rate change, the State’s conservation
mandates and impact on YLWD’s budget. He also commented on a statement
attributed to President Collett, the FY 2016/17 budget, the District’s financial
reports, and discrepancies related to the value of YLWD’s infrastructure.
7. CONSENT CALENDAR
Director Kiley made a motion, seconded by Director Beverage, to approve the
Consent Calendar. Motion carried 3-0-0-2 with Directors Hawkins and Melton
being absent.
7.1. Minutes of the Board of Directors Special Meeting held June 23, 2016
Recommendation: That the Board of Directors approve the minutes as
presented.
7.2. Minutes of the Board of Directors Regular Meeting held June 23, 2016
Recommendation: That the Board of Directors approve the minutes as
presented.
7.3. Reschedule Board Meeting in November
Recommendation: That the Board of Directors reschedule the regular
meeting on Thursday, November 24, 2016 to Wednesday, November 23,
2016 at 8:30 a.m.
7.4. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $584,984.55.
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 3
7.5. Declaration of Restrictive Covenants with Yorba Linda Apartments, RRE
Yorba Linda Holdings, LLC.
Recommendation: That the Board of Directors authorize the President
and General Manager to execute the Declaration of Restrictive Covenants
with the Yorba Linda Apartments.
8. ACTION CALENDAR
8.1. Revenue Refunding Bonds, Series 2016A
Mr. McCann explained that in January 2016, the Board had determined to
move forward with advance refunding of the 2008 Certificates of
Participation (COP). In order to formally begin the process, the Board will
need to adopt a resolution and approve the execution of certain
documents. Copies of these documents were included in the agenda
packet with the exception of the Preliminary Official Statement. The latter
was provided to the Board and made available to the public prior to the
meeting. Mr. McCann then introduced Mr. Cyrus Torabi, the District’s
bond counsel, who explained the purpose of the related documents. Mr.
McCann and Mr. Torabi then responded to questions from the Board
regarding the escrow process and the District’s estimated savings.
Mr. Al Nederhood, resident, commented on the estimated savings, the life
of the bonds, revising the FY 2016/17 budget, and the upcoming recall
election.
Mr. Ed Rakochy, resident, commented on a draft document made
available on the District’s website, the District’s previous attempt to move
forward with the refunding process, and the prior and current estimated
savings.
Director Beverage made a motion, seconded by Director Kiley, to adopt
Resolution No. 16-17 Authorizing the Issuance Not to Exceed
$28,000,000 Refunding Revenue Bonds, Series 2016A and Approving the
Execution of Certain Documents in Connection Therewith and Certain
Other Matters. Motion passed 3-0-0-2 on a roll call vote with Directors
Hawkins and Melton absent.
8.2. Vehicle Replacement Purchases for the Engineering and Operations
Departments
Mr. DeCriscio explained that the FY 2016/17 budget included funding for
the replacement of two vehicles. Following evaluation of the Engineering
and Operations departments’ needs, staff obtained quotes from multiple
dealerships and is recommending that both vehicles be purchased from
the low bidder. The cost of one vehicle will be offset by approximately
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 4
$10K as it was involved in an accident and declared a total loss by the
District’s insurance provider.
Director Beverage made a motion, seconded by Director Kiley, to
authorize the General Manager to purchase two vehicles from George
Chevrolet for the total amount of $56,383. Motion carried 3-0-0-2 with
Directors Hawkins and Melton being absent.
9. DISCUSSION ITEMS
9.1. Financial Scenarios Related to Line of Credit, Certificates of Participation,
Reserves, and Water Rates
Mrs. Botts stated that staff was presenting additional financial scenarios
as requested by the Board at the last meeting. She noted that Raftelis
had adjusted the financial model and that the second slide of the
presentation had been revised. Mrs. Botts explained that there were 5
scenarios that included one or more of the following factors: reduction of
the water rate for 1” meters; future annual rate increases; payoff of certain
debts; and reducing capital reserves. She then reviewed the baseline and
each of the scenarios and responded to questions from the Board
regarding the impact on the District’s debt ratio and reserves. She also
clarified that each of the scenarios included projected costs for approved
capital improvement projects through FY 2021.
Mr. Brooke Jones, resident, commented on the Fairmont Booster Pump
Station Upgrade Project and potential developer contributions associated
with a proposed development project.
Mr. Al Nederhood, resident, commented on the slides contained in the
presentation, the impact on reserves as reflected in the scenarios, and
revenue received in FY 2015/16.
10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1. President's Report
None.
10.2. Directors' Reports
UWI Annual Conference – August 24-26, 2016 (Kiley)
Director Kiley provided a brief report on his attendance at this
event.
10.3. General Manager's Report
Mr. Marcantonio asked each of the managers or their designees to
provide a report regarding activities within their respective departments.
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 5
Mr. Conklin reported on the status of various construction projects
including the Waterline Replacement Project, Well 21 Project, and
Richfield Road Water Main Project.
Mr. DeCriscio reported that staff had recently participated in fire hydrant
maintenance training and responded to questions from the Board
regarding the difference between dry and wet barrels, associated training
for firefighters, and the District’s hydrant and valve maintenance
programs.
Mr. McCann reported that staff had received the draft Comprehensive
Annual Financial Report (CAFR) from the auditors and that no year-end
adjustments were necessary. He stated that staff would be preparing the
CAFR for future submission to the Government Finance Officers
Association and that Mr. Nitin Patel from White Nelson Diehl Evans would
be attending the meeting scheduled October 13, 2016 to present it to the
Board.
Mr. Vega reported on the resolution of an issue with one of the District’s
major software programs and the number of blocked threats during the
previous month.
Mr. Micalizzi reported on conservation trends during the month and topics
discussed during a water shortage contingency workshop and other
meetings he had attended. He and Mr. Marcantonio then reported on the
status of legislative affairs and potential revisions to the State’s
conservation regulations.
Mrs. Knight reported on staff’s activities related to updating and
developing various policies.
Mr. Marcantonio noted that while the Anaheim Sustainability Center would
not be located within the District’s service area, staff had contacted
OCWD to obtain information regarding potential impact on the
groundwater basin.
10.4. General Counsel's Report
None.
10.5. Future Agenda Items and Staff Tasks
None.
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 6
11. COMMITTEE REPORTS
11.1. Interagency Committee with MWDOC and OCWD
(Collett / Melton)
Next meeting is scheduled September 27, 2016 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Collett / Beverage)
Minutes of the meeting held August 23, 2016 at 11:00 a.m. were
provided in the agenda packet.
Next meeting scheduled September 20, 2016 at 10:00 a.m. at YL
City Hall.
11.3. Interagency Committee with City of Placentia and Golden State Water Co.
(Collett / Kiley)
Next meeting is yet to be scheduled.
11.4. Citizens Advisory Committee
(Melton)
Minutes of the meeting held August 29, 2016 at 8:30 a.m. were
provided in the agenda packet. Director Beverage briefly
commented on matters discussed during the meeting.
Next meeting is scheduled September 26, 2016 at 8:30 a.m.
12. INTERGOVERNMENTAL MEETINGS
The Directors and staff reported on their attendance at the following meetings.
12.1. YL City Council – September 6, 2016 (Beverage)
12.2. MWDOC Board – September 7, 2016 (Staff)
12.3. OCSD Operations Committee – September 7, 2016 (Kiley/Beverage)
12.4. OCWD Board – September 7, 2016 (Collett)
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from September 9, 2016 – October 31, 2016
The Board reviewed the activity calendar and made no changes.
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 7
14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS
14.1. AWWA-CA-NV Annual Conference – October 24-27, 2016
ACWA/JPIA Fall Conference – November 28-29, 2016
ACWA Fall Conference – November 29-December 2, 2016
Director Kiley made a motion, seconded by Director Beverage, to approve
Director attendance at these events if desired. Motion carried 3-0-0-2 with
Directors Hawkins and Melton being absent.
15. CLOSED SESSION
The meeting was adjourned to Closed Session at 9:58 a.m. All Directors in
attendance were present. Also present were Messrs. Gagen, Marcantonio, and
Micalizzi and Mrs. Knight.
15.1. Conference with Legal Counsel – Pending Litigation
Pursuant to Subdivision (a) of Section 54956.9 of the California
Government Code
Name of Case: Kent Ebinger and Yorba Linda Taxpayers Association
vs. Yorba Linda Water District (OC Superior Court –
Case No. 00829548)
15.2. Conference with Legal Counsel – Pending Litigation
Pursuant to Subdivision (a) of Section 54956.9 of the California
Government Code
Name of Case: Irvine Ranch Water District vs. Orange County Water
District (OC Superior Court – Case No. 00858584)
15.3. Conference with Legal Counsel – Pending Litigation
Pursuant to Subdivision (a) of Section 54956.9 of the California
Government Code
Name of Case: City of Anaheim et al. vs. Cohen et al. (3rd Appellate
District – Case No. C091918, OC Superior Court –
Case No. 34-2013-80001529)
The Board reconvened in Open Session at 10:36 a.m. No action was taken
during Closed Session that was required to be reported under the Brown Act.
Minutes of the YLWD Board of Directors Regular Meeting Held September 8, 2016 at 8:30 a.m. 8
16. ADJOURNMENT
16.1. The meeting was adjourned at 10:37 a.m. The next Regular Board of
Directors Meeting will be held Thursday, September 22, 2016 at 8:30 a.m.
Annie Alexander
Assistant Board Secretary
ITEM NO. 7.4
AGENDA REPORT
Meeting Date: October 27, 2016
Subject:Minutes of the Board of Directors Regular Meeting held September 22, 2016
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2016-09-22_-_Minutes_-_BOD.doc Minutes Minutes
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 1
2016-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, September 22, 2016, 8:30 a.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The September 22, 2016 Regular Meeting of the Yorba Linda Water District
Board of Directors was called to order by President Collett at 8:30 a.m. The
meeting was held in the Board Room at the District’s Administration Building
located at 1717 East Miraloma Avenue in Placentia, California 92870.
2. PLEDGE OF ALLEGIANCE
President Collett led the pledge.
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Ric Collett, President Marc Marcantonio, General Manager
Mike Beverage, Vice President Delia Lugo, Finance Manager
Phil Hawkins Damon Micalizzi, Public Information Manager
Bob Kiley Art Vega, Information Technology Manager
Gary Melton Annie Alexander, Executive Secretary
Cindy Botts, Water Cons Supv/Mgmt Analyst
Amelia Cloonan, Human Resources Analyst
Anthony Manzano, Senior Project Manager
Javier Martinez, Water Production Supt
Laurie McAllaster, Records Mgmt Admin
Malissa Tem, Public Affairs Representative
Alex Thomas, Water Quality Engineer
ALSO PRESENT
Andrew Gagen, Partner, Kidman Law LLP
Gene Hernandez, Councilmember, City of Yorba Linda
4. ADDITIONS/DELETIONS TO THE AGENDA
4.1. Second Request for Letter of Support for City of Anaheim’s Prop 1
Stormwater Improvement Grant Application – California Urban Rivers
Grant Program
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 2
Mr. Marcantonio requested to add this matter to the agenda as Item No.
9.3. as it came to staff’s attention subsequent to posting the agenda and
required immediate attention.
Director Beverage made a motion, seconded by Director Hawkins, to add
this matter to the agenda as Item No. 9.3. as it came to staff’s attention
subsequent to posting the agenda and requires immediate action. Motion
carried 5-0.
5. INTRODUCTIONS AND PRESENTATIONS
5.1. MWDSC/MWDOC Director’s Report
None.
6. PUBLIC COMMENTS
None.
7. CONSENT CALENDAR
Director Kiley made a motion, seconded by Director Hawkins, to approve the
Consent Calendar. Motion carried 5-0.
7.1. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $1,325,162.15.
7.2. Terms and Conditions for Water and Sewer Service with YL West Estates,
LLC, Parcel Map No. 2016-131
Recommendation: That the Board of Directors approve the Terms and
Conditions for Water and Sewer Service with YL West Estates, LLC,
Parcel Map No. 2016-131.
8. PUBLIC HEARING
8.1. 2016 Public Health Goals Report
President Collett opened the Public Hearing at 8:32 a.m.
Mr. Thomas explained that beginning in 1998, the State has required
agencies with more than 10,000 service connections to prepare a Public
Health Goals Report every 3 years if any water quality measurements
exceed the Public Health Goals (PHG) or Maximum Contaminant Level
Goals (MCLGs) established by the California Office of Environmental
Health Hazard Assessment and US Environmental Protection Agency.
PHGs and MCLGs are not enforceable standards and no action is
required to meet them. Only 5 water constituents were detected that
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 3
exceeded the PHGs and MCLGs, those being: total coliform, copper,
arsenic, uranium and gross alpha. None of them exceeded enforceable
drinking water standards. Mr. Thomas then provided an overview of each
of the above listed constituents, estimated treatments costs, and the
District’s water quality testing procedures. Staff is not recommending
further treatment for these constituents at this time as they are below
enforceable drinking water standards and methods are cost prohibitive or
non-existent.
President Collett opened the floor to public comments. None were
provided.
Mr. Thomas then responded to questions from the Board regarding the
District’s results in comparison to other agencies in Orange County, the
limitations and capabilities of residential filter systems, and testing
procedures for new wells.
President Collett closed the Public Hearing at 8:51 a.m.
Director Beverage made a motion, seconded by Director Hawkins, to
receive and file the 2016 Public Health Goals Report. Motion carried 5-0.
9. ACTION CALENDAR
9.1. Election of Independent Special District of Orange County (ISDOC)
Officers
Mr. Micalizzi explained that ISDOC was conducting an election of officers
for which there were currently two nominations for each position. The
names of the candidates were listed on the ballot included in the agenda
packet. Additionally, any elected or appointed official from a member
district is eligible to run as a write-in candidate, however, they will need a
resolution of support from their Board prior to being seated. Each member
district is also entitled to one vote which must be cast by the District’s
presiding officer or an alternate selected by the Board.
The Board then reviewed the ballot.
Director Hawkins made a motion, seconded by Director Kiley, to vote for
the following candidates in the ISDOC Election of Officers:
President James R. Fisler, Director, Mesa Water District
First VP Arlene Schafer, Assistant Secretary, Costa Mesa SD
Second VP Doug Davert, President, East Orange County WD
Third VP Dr. Allan Bernstein, President, OC Mosquito & Vector CD
Motion carried 5-0.
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 4
9.2. Lease Agreement for Well 22 Site
Mr. Thomas explained that staff had been working with OCWD to obtain a
lease agreement for Well No. 22. The well site is located on property
owned by OCWD and is adjacent to Huckleberry Pond in Anaheim. In lieu
of compensation, water from Well No. 21 will be provided to OCWD at no
cost. This water and the discharge water from both wells will not be
subject to OCWD’s Replenishment Assessment. The lease agreement
was approved by OCWD’s Board in September and will expire in 50 years.
Should the agreement be approved by YLWD’s Board, staff will move
forward with hiring a consultant to prepare the CEQA document and the
plans and specifications for drilling of the well.
President Collett commended staff on their work and noted that the District
had been had been working on this project for several years.
Director Melton made a motion, seconded by Director Hawkins, to
approve execution of a Lease Agreement between Orange County Water
District and Yorba Linda Water District for Huckleberry Pond, Well No. 22.
Motion carried 5-0.
9.3. Second Request for Letter of Support for City of Anaheim’s Prop 1
Stormwater Improvement Grant Application – California Urban Rivers
Grant Program
Mr. Manzano explained that the City of Anaheim had requested a letter of
support from the District for the City’s Stormwater Improvement Grant
Application to the California Urban Rivers Grant Program. The Board
previously approved a similar letter for a separate grant which was
addressed to the State Water Resources Control Board.
Director Kiley made a motion, seconded by Director Hawkins, to direct the
General Manager to execute the letter as presented and forward it to the
City of Anaheim. Motion carried 5-0.
10. DISCUSSION ITEMS
10.1. Scheduling Special Meeting to Participate in Municipal Market Disclosure
Training
Mrs. Lugo explained the importance of the Board and key staff’s
awareness of their responsibilities in regards to the disclosure process
when issuing bonds. Following brief discussion, the Board determined to
schedule a special meeting on October 17, 2016 at 9:00 a.m. to conduct
this training.
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 5
11. REPORTS, INFORMATION ITEMS, AND COMMENTS
11.1. President's Report
None.
11.2. Directors' Reports
None.
11.3. General Manager's Report
Mr. Marcantonio asked each of the managers or their designees to
provide a report regarding activities within their respective departments.
Mr. Manzano reported on the status of various construction projects
including the Well 21 Equipping Project, Richfield Road Water Main
Project, and Waterline Replacement Project. Mr. Marcantonio and
Director Melton both commented on the benefits of the Well 22 project and
the District’s positive relationships with OCWD and other agencies.
Mr. Martinez reported on current and historical water production trends
and maintenance being performed on Wells 1 and 15.
Mrs. Lugo stated that at the last Board meeting, a question had arisen
regarding the projected annual cash flow savings associated with
refunding the 2008 Certificates of Participation. She explained that when
the Board was initially presented with the refunding opportunity in January,
it was projected that the annual cash flow savings would be approximately
$322K with a cumulative cash flow savings of approximately $7.4M. At
this time, it is projected that the annual cash flow savings will be
approximately $326K with a cumulative cash flow savings of
approximately $7.5M. She noted that these numbers were projections
and that staff would not know the actual savings until the end of the
refunding process. Mrs. Lugo then reported that staff had reviewed the
draft Comprehensive Annual Financial Report (CAFR) and that Mr. Nitin
Patel from White Nelson Diehl Evans would be attending the next Board
meeting to present the finalized document to the Board. Mrs. Lugo also
reported on the status of the line of credit and a training she had recently
attended. She stated that staff would be working with Fieldman Rolapp to
develop a debt management and disclosure policy and that a draft would
be presented to the Board for review at the next meeting. She noted that
pursuant to SB 1029, issuers of debt will now be required to have such a
policy. Having at least a draft policy will also benefit the District during the
upcoming review by rating agencies.
Mr. Vega reported on the status of the lease agreement with Konica
Minolta and the number of blocked threats during the previous and current
month.
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 6
Mr. Micalizzi reported on the status of statewide conservation, legislative
affairs, and recent activities of the State Water Resources Control Board.
He also stated that Mesa Water District and Costa Mesa Sanitary District
were considering consolidation and that the question would be included on
the November ballot. He then responded to questions from the Board
regarding water consumption trends.
Ms. Cloonan reported that the District had received a $2K health and
wellness grant from ACWA/JPIA which has been used to upgrade
equipment in the District’s gym.
11.4. General Counsel's Report
None.
11.5. Future Agenda Items and Staff Tasks
President Collett asked when the Board would like to consider the
disposition of surplus revenue received from administrative penalties. Mr.
Marcantonio suggested to wait until after the Governor’s drought
emergency declaration formally expired. He explained that these funds
were still being utilized as the District was continuing to provide
conservation related services and staff was in the process of reviewing
penalty exemption requests for customers living in wildland-urban
interface zones. Mrs. Lugo stated that the CAFR contained a statement
indicating that these funds were restricted and could only be used for
eligible expenses.
12. COMMITTEE REPORTS
12.1. Interagency Committee with MWDOC and OCWD
(Collett / Melton)
Next meeting is scheduled September 27, 2016 at 4:00 p.m.
12.2. Joint Agency Committee with City of Yorba Linda
(Collett / Beverage)
Minutes of the meeting held September 20, 2016 at 10:00 a.m. will
be provided when available.
Next meeting yet to be scheduled.
12.3. Interagency Committee with City of Placentia and Golden State Water Co.
(Collett / Kiley)
Next meeting is yet to be scheduled.
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 7
12.4. Citizens Advisory Committee
(Melton)
Next meeting is scheduled September 26, 2016 at 8:30 a.m.
Director Melton indicated that Director Beverage would be
attending this meeting on his behalf.
13. INTERGOVERNMENTAL MEETINGS
The Directors and staff reported on their attendance at the following meetings.
13.1. WACO – September 9, 2016 (Hawkins/Kiley)
13.2. LAFCO – September 14, 2016 (Beverage – As Needed)
Director Beverage did not attend this meeting.
13.3. YL Planning Commission – September 14, 2016 (Melton)
13.4. YL City Council – September 20, 2016 (Melton)
Councilmember Hernandez reported on the planned construction of the
new City library and responded to related questions from the Board.
13.5. MWDOC Board – September 21, 2016 (Melton)
13.6. OCWD Board – September 21, 2016 (Kiley)
14. BOARD OF DIRECTORS ACTIVITY CALENDAR
14.1. Meetings from September 23, 2016 – October 31, 2016
The Board reviewed the activity calendar and made no changes.
15. CONFERENCES, SEMINARS, AND SPECIAL EVENTS
15.1. ISDOC – September 29, 2016
OCSD State of the District – October 14, 2016
CRWUA Annual Conference – December 7-9, 2016
Director Hawkins made a motion, seconded by Director Kiley, to approve
Director attendance at these events if desired. Motion carried 5-0.
16. CLOSED SESSION
The meeting was adjourned to Closed Session at 9:44 a.m. All Directors in
attendance were present. Also present were Messrs. Gagen, Marcantonio, and
Micalizzi.
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 8
16.1. Conference with Legal Counsel – Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the
California Government Code
Name of Case: Kent Ebinger and Yorba Linda Taxpayers Association
vs. Yorba Linda Water District (OC Superior Court –
Case No. 00829548)
16.2. Conference with Legal Counsel – Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the
California Government Code
Name of Case: Irvine Ranch Water District vs. Orange County Water
District (OC Superior Court – Case No. 00858584)
16.3. Conference with Legal Counsel – Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the
California Government Code
Name of Case: City of Anaheim et al. vs. Cohen et al. (3rd Appellate
District – Case No. C081918, OC Superior Court –
Case No. 34-2013-80001529)
16.4. Conference with Legal Counsel – Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the
California Government Code
Name of Case: City of Yorba Linda vs. Nicola Saba, et al. (OC
Superior Court – Case No. 00847807)
16.5. Conference with Legal Counsel – Existing Litigation
Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the
California Government Code
Name of Case: City of Yorba Linda vs. Harry Schlitz, et al. (OC
Superior Court – Case No. 00847840)
Messrs. Gagen, Marcantonio and Micalizzi left the Closed Session prior to
discussion of the following matter.
16.6. Public Employee Performance Evaluation
Pursuant to Section 54957 of the California Government Code
Title: General Manager
Minutes of the YLWD Board of Directors Regular Meeting Held September 22, 2016 at 8:30 a.m. 9
The Board reconvened in Open Session at 10:21 a.m. Mr. Gagen reported that
during Closed Session, the Board had voted unanimously to approve settlement
agreements with the City of Yorba Linda in relation to Item Nos. 16.4. and 16.5.
No other action was taken during Closed Session that was required to be
reported under the Brown Act.
17. ADJOURNMENT
17.1. The meeting was adjourned at 10:22 a.m. The next Regular Board of
Directors Meeting will be held Thursday, October 13, 2016 at 8:30 a.m.
Annie Alexander
Assistant Board Secretary
ITEM NO. 7.5
AGENDA REPORT
Meeting Date: October 27, 2016 Budgeted:Yes
To:Board of Directors Cost Estimate:$1,733,824.79
Funding Source:All Funds
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Reviewed by Legal:N/A
Prepared By:Richard Cabadas, Accounting
Assistant I
CEQA Compliance:N/A
Subject:Payments of Bills, Refunds, and Wire Transfers
SUMMARY:
Section 31302 of the California Water Code says the District shall pay demands made against it
when they have been approved by the Board of Directors. Pursuant to law, staff is hereby
submitting the list of disbursements for Board of Directors’ approval.
STAFF RECOMMENDATION:
That the Board of Directors ratify and authorize disbursements in the amount of $1,733,824.79.
DISCUSSION:
The major items on this disbursement list are as follows: A wire of $369.98 to So. California Edison
for September 2016 electrical charges at multiple locations; a wire of $42,500.69 to So. California
Gas Co. for September 2016 gas charges at multiple locations; a wire of $659,611.92 to MWDOC
for August 2016 water purchases; a check of $111,467.62 to ACWA/JPIA for November 2016
medical and dental premium; a check of $148,662.18 to GCI Construction Inc. for waterline
replacement progress payment #05; and a check of $238,914.16 to Pascal Ludwig Contractors for
Well #21 progress payment #07. The balance of $265,486.41 is routine invoices.
The Accounts Payable check register total is $1,467,012.96; Payroll No. 20 total is $266,811.83;
and the disbursements of this agenda report are $1,733,824.79. A summary of the checks is
attached.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors approves bills, refunds and wire transfers semi-monthly.
ATTACHMENTS:
Name:Description:Type:
16-CS_1027.pdf CAP SHEET Backup Material
CkReg102716.pdf CHECK REGISTER Backup Material
16_CC_1027.pdf CREDIT CARD SUMMARY Backup Material
.
October 27, 2016
CHECK NUMBERS & WIRES:
Computer Checks 68462—68567 $ 764,530.37
____________
$ 764,530.37
WIRES:
W101116 So. Cal Edison $ 369.98
W101416 So. California Gas Co. $ 42,500.69
W101416A MWDOC $ 659,611.92
____________ $ 702,482.59
TOTAL OF CHECKS & WIRES $1,467,012.96
PAYROLL NO. 20:
Direct Deposits $ 170,155.65
Third Party Checks 6513—6520 $ 47,877.85
Payroll Taxes $ 48,778.33
$ 266,811.83
TOTAL OF PAYROLLS $266,811.83
----------------------------------------------------------------------------------------------------------------------
DISBURSEMENT TOTAL: $1,733,824.79
==================================================================
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF October 27, 2016
==================================================================.
Check No.Date Vendor Name Amount Description
68483 10/27/2016 ACWA/JPIA 29,855.00 3RD QUARTER 2016 WORKER COMPENSATION PREMIUM
68484 10/27/2016 ACWA/JPIA 111,467.62 MEDICAL & DENTAL PREMIUM - NOVEMBER 2016
68474 10/27/2016 ADOLFO CHANEZ 26.90 CUSTOMER REFUND
68485 10/27/2016 Air Treatment Corporation 1,893.71 AC PARTS & MATERIAL
68486 10/27/2016 Alternative Hose Inc.567.73 VEHICHEL EQUIPMENT - UNIT 197
68473 10/27/2016 AMAZING SHINE NAILS INC 366.92 CUSTOMER REFUND
68487 10/27/2016 Anaheim Wheel & Tire 110.00 MOUNT & BALANCE TIRES - UNIT 171 & 208
68488 10/27/2016 Aqua-Metric Sales Co.26,817.28 WAREHOUSE STOCK
68489 10/27/2016 Aramark 686.01 UNIFORM SERVICE
68501 10/27/2016 ARC 3,054.60 J10-11B - FAIRMONT BPS - PW DMF/DOC MGMT
68490 10/27/2016 AW Direct Inc.117.71 VEHICHLE MAINTENANCE - #174
68478 10/27/2016 BRANDYWINE HOMES 400.06 CUSTOMER REFUND
68477 10/27/2016 BROOKSMOORE HOUSING MGMT 41.71 CUSTOMER REFUND
68503 10/27/2016 C. Wells Pipeline 1,053.00 WAREHOUSE STOCK
68492 10/27/2016 CalCard US Bank 19,919.18 SEPTEMBER & OCTOBER 2016 CREDIT CARD TRANSACTIONS
68491 10/27/2016 Calolympic Safety Co.397.70 REPAIR ON QRAE II MONITORS
68493 10/27/2016 Carollo Engineers 4,500.00 PROFESSIONAL SERVICES - JULY 2016
68471 10/27/2016 CARY FACER 33.97 CUSTOMER REFUND
68494 10/27/2016 CDW Government, Inc 23,748.60 IT COMPUTER EQUIPMENT
68495 10/27/2016 Chambers Group Inc.1,876.50 PROFESSIONAL SERVICES - AUGUST 2016
68480 10/27/2016 CHUN WANG 270.80 CUSTOMER REFUND
68496 10/27/2016 Citizen's Business Bank 12,574.43 J09-22#21 - WELL 21 - RETENTION PAYABLE #07
68497 10/27/2016 City Of Placentia 4,328.97 SEWER FEES - SEPTEMBER 2016
68498 10/27/2016 CLIMATEC, LLC 675.00 ONSITE SERVICE - AC MAINTENANCE
68499 10/27/2016 Coastal Ignition & Controls 2,120.39 STATIONARY ENGINE MAINTENANCE
68500 10/27/2016 Cobra Solutions, Inc 445.00 ANNUAL MAINTENANCE AGREEMENT. FY16/17
68465 10/27/2016 CRAIG GEREAU 48.62 CUSTOMER REFUND
68502 10/27/2016 Culligan of Santa Ana 2,083.31 EQUIPMENT PE SOFTENER - OCTOBER 2016
68504 10/27/2016 Cynthia Botts 394.66 TRAVEL EXPENSE - WATER SMART INNOVATION CONFERENCE - REIMBURSEMENT
68505 10/27/2016 Daniels Tire Service 390.31 TIRE REPLACEMENT - UNIT #178
68470 10/27/2016 DAVID BLOSS 61.38 CUSTOMER REFUND
68506 10/27/2016 Dell Marketing L.P.2,707.71 IT COMPUTER & HARDWARE
68507 10/27/2016 Delta Wye Electric, Inc.1,375.00 PLC MODIFICATION
68509 10/27/2016 Dion & Sons, Inc.4,395.01 STATIONARY ENGINE MAINTENANCE
68510 10/27/2016 Doane and Hartwig Water Systems, Inc.731.96 CL2 PARTS
68511 10/27/2016 Don Wolf & Associates Inc.503.94 ANALYZER CALIBRATION
68512 10/27/2016 Eisel Enterprises, Inc.2,980.80 VALVE BOX & IRON COVER
68513 10/27/2016 Elite Equipment Inc 1,214.89 EQUIPMENT - UNIT #E217
68514 10/27/2016 Employee Relations, Inc.97.00 PRE-EMPLOYMENT INFORMATION
68515 10/27/2016 Enkay Engineering & Equipment Inc 900.00 REMOVAL & DISPOSAL - PIPE
68516 10/27/2016 Enthalpy Analytical, Inc.4,498.40 WATER SAMPLING
68464 10/27/2016 EVELYN KATZAROFF 400.00 CUSTOMER REFUND
68517 10/27/2016 EyeMed 1,397.38 EYE MED PREMIUM - OCTOBER 2016
68518 10/27/2016 Fleet Services, Inc 623.25 MAINTENANCE - HIGHLAND #1 & #5
68519 10/27/2016 Flex Advantage 108.00 FLEX ADVANTAGE - SEPTEMBER 2016
68520 10/27/2016 Fry's Electronics 89.58 IT HARDWARE SUPPLIES
68521 10/27/2016 GCI Construction Inc.148,662.18 J14-12 - '15 WATER PIPELINE REPL - PROGRESS PAYMENT #05
68522 10/27/2016 Haaker Equipment Co.1,254.52 VEHICLE MAINTENANCE - UNIT #168 & #210
68523 10/27/2016 Hands on Wellness Center 100.00 BENEFIT FAIR - (2) THERAPIST
68524 10/27/2016 Harrington Industrial 866.50 CL2 REPLACEMENT PARTS
68525 10/27/2016 Hydrex Pest Control 175.00 PEST CONTROL
68526 10/27/2016 Infosend Inc.6,719.89 POSTAGE BILLING - MONTHLY FEE
68527 10/27/2016 Jackson's Auto Supply - Napa 321.36 VEHICLE MAINTENANCE - UNIT 171, 197, 200, 201, 210 & 211
68481 10/27/2016 JAIN FAMILY TRUST 306.38 CUSTOMER REFUND
Yorba Linda Water District
Check Register
For Checks Dated: 10/14/2016 thru 10/27/2016
68462 10/27/2016 JILL DENIRO 10.87 CUSTOMER REFUND
68468 10/27/2016 JOHN PENG 17.74 CUSTOMER REFUND
68528 10/27/2016 Kidman Law 17,426.00 LEGAL SERVICE
68529 10/27/2016 Konica Minolta Business 567.00 BIZHUB C552 & 181 LEASE
68531 10/27/2016 Marina Landscape, Inc 6,069.68 MONTHLY MAINTENANCE - SEPTEMBER 2016
68472 10/27/2016 MARISELA DUNEHEW 196.75 CUSTOMER REFUND
68475 10/27/2016 MARYAM BOZORGHADDAD 122.48 CUSTOMER REFUND
68532 10/27/2016 Mc Fadden-Dale Hardware 419.95 HARDWARE SUPPLIES
68533 10/27/2016 Mc Master-Carr Supply Co.299.55 SHOP SUPPLIES
68534 10/27/2016 Measurement Control Systems, Inc 431.29 PRODUCTION REPAIR PARTS
68535 10/27/2016 Mobile Industrial Supply 8.00 WELDING SUPPLIES
68567 10/27/2016 Municipal Water District 28,999.25 FY16/17 CHOICE PROGRESS PROGRAM ANNUAL INVOICE
W101416A 10/14/2016 Municipal Water District 659,611.92 WATER PURCHASES - AUGUST 16
68479 10/27/2016 NEXT LEVEL PROPERTY INVESTMENTS 403.39 CUSTOMER REFUND
68536 10/27/2016 Nickey Kard Lock Inc 4,956.97 FUEL - 09/15/16 - 09/30/16
68537 10/27/2016 Nickey Petroleum Co Inc 935.28 MAINTENANCE - PUMP GEAR HEADS
68538 10/27/2016 Norm's Refrigeration & Ice Equipment 250.00 HVAC SERVICE - RICHFIELD
68539 10/27/2016 Office Solutions 987.80 OFFICE SUPPLIES AND TONER
68540 10/27/2016 Orange County - HCA 34.25 PERMIT FEES
68541 10/27/2016 Orange County Register 966.00 LEGAL PUBLIC NOTICE
68548 10/27/2016 P.T.I. Sand & Gravel, Inc.1,228.36 MATERIALS - COLD MIX ASPHALT
68467 10/27/2016 PACIFIC LEGACY REAL ESTATE 685.21 CUSTOMER REFUND
68542 10/27/2016 Pacific Tek 820.80 VEHICLE MAINTENANCE - UNIT 180
68543 10/27/2016 Parts Source Anaheim 34.53 VEHICLE MAINTENANCE - UNIT 210
68544 10/27/2016 Pascal & Ludwig Constructors, Inc 238,914.16 J09-22#21 - WELL 21 - PROGRESS PAYMENT #07
68545 10/27/2016 Plumbing And Industrial Supply 599.46 BUILDING REPAIR PARTS
68546 10/27/2016 Powerstride Battery 189.45 BATTERIES - UNIT 180 & 195
68547 10/27/2016 Praxair Distribution 157.80 WELDING SUPPLIES
68551 10/27/2016 R.E. Michel Company, LLC 958.33 AC PARTS & MATERIALS
68549 10/27/2016 RACHEL PADILLA 155.44 CUSTOMER SERVICE WEEK - REIMBURSEMENT
68550 10/27/2016 Raftelis Financial Consultants, Inc.240.00 PROFESSIONAL SERVICES - SEPTEMBER 2016
68552 10/27/2016 Safety-Kleen Systems Inc 439.90 HAZARDOUS MATERIAL DISPOSAL
68553 10/27/2016 SC Prime Source Inc.4,800.00 JANITORIAL SERVICE - OCTOBER
68463 10/27/2016 SCOTT CRAIG 69.99 CUSTOMER REFUND
68476 10/27/2016 SHAOJUN LIU 279.96 CUSTOMER REFUND
68554 10/27/2016 Solarwinds Inc.9,998.00 SOLARWIND UPGRADE & LICENSE - VIRTUALIZATION MANAGER
68555 10/27/2016 South Coast AQMD 1,898.65 ANNUAL RENEWAL & EMMISION FEES
W101416 10/14/2016 Southern Calif Gas Co.42,500.69 GAS FEES - SEPTEMBER 2016 - MULTIPLE LOCATIONS
W101116 10/10/2016 Southern California Edison 369.98 ELECTRICAL FEES - SEPTEMBER 2016 - MULTIPLE LOCATIONS
68556 10/27/2016 St.Jude Hospital Yorba Linda 12.00 AUDIOGRAM - OJEDA,F
68557 10/27/2016 Suburban Propane 91.80 PROPANE TANK
68558 10/27/2016 Sunrise Medical Group 660.00 ON SITE SERVICES - FLU VACCINES
68482 10/27/2016 TERRA PAVE 914.40 CUSTOMER REFUND
68530 10/27/2016 The Lighthouse Inc.590.61 VEHICLE EQUIPMENT - UNIT 168
68559 10/27/2016 The Shredders 20.00 SHRED SERVICE
68560 10/27/2016 Time Warner Cable 2,171.84 ETHERNET INTERSTATE COLOCATION
68561 10/27/2016 Titan Water Technology Inc 295.00 SERVICE MAINTENANCE - H/C LOOP
68562 10/27/2016 Underground Service Alert 288.00 MONTHLY BILLING - DIGALERT
68563 10/27/2016 United Industries 577.27 PPE EQUIPMENT
68466 10/27/2016 VICTOR ALI 154.82 CUSTOMER REFUND
68469 10/27/2016 VICTOR HERNANDEZ 10.20 CUSTOMER REFUND
68564 10/27/2016 West Coast Safety Supply Co 695.28 TOOLS & EQUIPMENT
68565 10/27/2016 Westrux International Inc 147.69 VEHICLE MAINTENANCE - UNIT 168
68508 10/27/2016 White Nelson Diehl Evans LLP 2,550.00 2016 GOVERNMENT TAX SEMINAR - (2) & 4TH INTERIM BILLING - AUDIT
68566 10/27/2016 Yorba Linda Hardware 23.35 HARDWARE SUPPLIES
1,467,012.96
Date Vendor Name Amount Description
9/6/2016 Sheraton 403.45 Travel Expense - CSDA Conference - Kiley, R
9/6/2016 Decorative Engineering 207.90 (1) Gravity feedgun
9/15/2016 Advanced Infrastructure 252.98 Hydroexcavation nozzle - Unit 168
9/19/2016 Southwest Airlines 97.96 Travel Expense - CRUWA Conference - Marcantonio, M
9/21/2016 Amazon.com 178.56 (4) Industrial plastic pallets
9/26/2016 Dunkin Donuts 21.98 CAC meeting - doughnuts
9/28/2016 Eye Wash Direct 158.97 Portable eye wash - Fairmont booster station
9/30/2016 United Water Works 13,606.94 August 2016 invoices - Warehouse stock
10/3/2016 El Farolito 139.32 Staff meeting - Finance & Customer service department
10/3/2016 Home Depot 107.94 (2) Ice chest
10/3/2016 AWWA - CA/NV 1,010.00 Travel Expense - AFC 2016 Conference - DeCriscio & Martinez
10/3/2016 McMaster Carr 245.54 Hardware supplies for production
10/4/2016 Amazon.com 225.00 Hydroexcavation nozzle - Unit 168
10/4/2016 Azteca Systems 550.00 Travel Expense - 2016 Cityworks Conference - Vargas, A
10/4/2016 Southwest Airlines 239.96 Travel Expense - 2016 Cityworks Conference - Vargas, A
10/4/2016 Subway 801.60 Lunch for District Health Benefit Fair - 10/04/16
10/4/2016 Dan Copp Crushing Corp 300.00 Road material disposal
10/5/2016 Amazon.com 53.12 Safety supplies - Eye wash preservative
10/5/2016 Pulltarps Mfg 113.40 Pullrod & hardware
10/5/2016 Harrington Industrial 161.49 CL2 replacement parts - Well 20
10/6/2016 Orchard Supply Hardware 13.32 Landscape repair parts
10/6/2016 Northside Sales 432.99 Safety supplies - harness
10/6/2016 Home Depot 193.01 Tools - sewer crew
10/7/2016 South Point Hotel 268.80 Travel Expense - 2016 WSI Conference - Botts, C
10/8/2016 FTP Today 64.95 ylwd.ftptoday.com - temporary data storage
10/10/2016 OCWA 40.00 OCWA Luncheon - Marcantonio, M
10/10/2016 SCIE ARMA 30.00 SCIE ARMA chapter meeting - McAllaster, L
19,919.18
Cal Card Credit Card
U S Bank
9/06/16 - 10/10/16
ITEM NO. 7.6
AGENDA REPORT
Meeting Date: October 27, 2016
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Kelly McCann, Senior
Accountant
Subject:Budget to Actual Reports for the Months Ending July 31, 2016 and August 31,
2016
SUMMARY:
Presented are the Budget to Actual Reports for the Months Ending July 31, 2016 and August 31,
2016.
STAFF RECOMMENDATION:
That the Board of Directors receive and file the Budget to Actual Reports for the Months Ending July
31, 2016 and August 31, 2016.
DISCUSSION:
For the months ending July 31, 2016 and August 31, 2016, staff is presenting Budget to Actual
Reports for the District as a whole, as well as the individual water and sewer funds.
As reported through July 31, 2016, Total Water Operating Revenue, as presented, is 9.49% of
annual budget, which is .48% lower than the five year historical trend for this point of the current
fiscal year. Water Other Operating Revenue is 13.34% of annual budget and Total Sewer
Operating Revenue is 7.02% of annual budget. Variable Water Costs are 11.83% of annual budget,
which is .79% higher than budget. Water Fund’s individual Supplies and Services expenses are
below budget, with the exception of Dues & Memberships is at 26.22% of annual budget due
to annual LAFCO and AWWA membership costs, and Utilities is at 12.05% of the annual budget
due to electricity costs at the Richfield and Miraloma facilities. Other Expenses are at (-37.75%) of
the annual budget due to refund of AT&T prior fiscal year expenses.
While through August 31, 2016, Total Water Operating Revenue, as presented, is 19.18% of annual
budget, which is 1.82% lower than the five year historical trend for this point of the fiscal
year. Water Other Operating Revenue is 26.18% of annual budget and Total Sewer Operating
Revenue is 14.92% of annual budget. Variable Water Costs are 22.19% of annual budget, which
is .09% lower than budget. The majority of the Water Fund’s individual Supplies and Services
expenses are below budget, with the exceptions of Dues & Memberships and Utilities due as
mentioned above in July reported reasons. In addition, Professional Services is presented at
18.50% of annual budget due to Townsend, Kidman, Rafetlis, White Nelson Diehl Evans services,
and Vehicle Equipment is presented at 22.38% of annual budget due to costs related to vehicle and
stationery engine maintenance costs. Other Expenses are at (-114.73%) of the annual budget due
to the refund mentioned in July above and ACWA/JPIA reimbursement of water main leak repair
costs expensed in prior fiscal year.
STRATEGIC PLAN:
FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a
Timely and Transparent Manner to the Board of Directors and Member Agencies
ATTACHMENTS:
Name:Description:Type:
July_2016_Consolidated_Statement.xlsx July 2016 Consolidated Statement Backup Material
July_2016_Water_Statement.xlsx July 2016 Water Statement Backup Material
July_2016_Sewer_Statement.xlsx July 2016 Sewer Statement Backup Material
August_2016_Consolidated_Statement.xlsx August 2016 Consolidated Statement Backup Material
August_2016_Water_Statement.xlsx August 2016 Water Statement Backup Material
August_2016_Sewer_Statement.xlsx August 2016 Sewer Statement Backup Material
Annual YTD July YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over)% of % of YTD
FY 2016 FY 2016 FY 2016 FY 2016 Budget Budget Budget
Revenue (Operating):
Water Revenue (Residential) $13,907,406 $1,386,568 $1,214,525 $1,214,525 12,692,881 8.73% 87.59%
Water Revenue (Commercial & Fire Det.) 1,874,818 186,919 156,922 156,922 1,717,896 8.37% 83.95%
Water Revenue (Landscape/Irrigation) 2,998,777 298,978 341,264 341,264 2,657,513 11.38% 114.14%
Water Revenue (Service Charge) 10,036,923 1,020,421 998,438 998,438 9,038,485 9.95% 97.85%
Sewer Charge Revenue 1,852,837 154,403 134,780 134,780 1,718,057 7.27% 87.29%
Locke Ranch Assessments 198,400 16,533.33 - - 198,400 0.00% 0.00%
Other Operating Revenue 654,825 54,569 94,294 94,294 560,531 14.40% 172.80%
Total Operating Revenue: 31,523,986 3,118,391 2,940,223 2,940,223 28,583,763 9.33%
Revenue (Non-Operating):
Interest 115,000 9,583 7,659 7,659 107,341 6.66% 79.92%
Property Tax 1,450,000 0 - 0 1,450,000 0.00% 0.00%
Other Non-Operating Revenue 616,525 51,377 26,407 26,407 590,119 4.28% 51.40%
Total Non-Operating Revenue: 2,181,525 60,960 34,066 34,066 2,147,460 1.56%
Total Revenue 33,705,511 3,179,352 2,974,289 2,974,289 30,731,223 8.82%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 13,179,477 1,557,598 1,558,819 1,558,819 11,620,658 11.83% 100.08%
Salary Related Expenses 9,253,623 1,201,640 987,302 987,302 8,266,321 10.67%82.16%
Supplies & Services 4,969,229 473,602 360,985 360,985 4,608,244 7.26% 76.22%
Total Operating Expenses 27,402,329 3,232,840 2,907,106 2,907,106 24,495,223 10.61%
Expenses (Non-Operating):
Interest on Long Term Debt 1,721,884 143,490 133,981 133,981 1,587,903 7.78% 93.37%
Other Expense 23,000 1,917 (8,683) (8,683) 31,683 -37.75% -453.05%
Total Non-Operating Expenses: 1,744,884 145,407 125,298 125,298 1,619,586 7.18%
Total Expenses 29,147,213 3,378,247 3,032,404 3,032,404 26,114,809 10.40%
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For the Month Ending July 31, 2016
Net Income (Loss) Before Capital Contributions 4,558,298 (198,895) (58,115) (58,115)4,616,413 -1.27%
Capital Contributions - - - 0 0 0.00%
Net Income (Loss) Before Depreciation 4,558,298 (198,895) (58,115) (58,115) 4,616,413 -1.27%
Depreciation & Amortization 7,561,272 630,106 592,413 592,413 6,968,859 7.83% 94.02%
Total Net Income (Loss)($3,002,974)($829,001)($650,528)($650,528)($2,352,446)21.66%
Annual YTD July YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over)% of Annual % of YTD
FY 2016 FY 2016 FY 2016 FY 2016 FY Budget Budget Budget
Revenue (Operating):
Water Revenue (Residential)$13,907,406 $1,386,568 $1,214,525 $1,214,525 12,692,882 8.73%87.59%
Water Revenue (Commercial & Fire Det.)1,874,818 186,919 156,922 156,922 1,717,896 8.37%83.95%
Water Revenue (Landscape/Irrigation)2,998,777 298,978 341,264 341,264 2,657,513 11.38%114.14%
Water Revenue (Service Charge)10,036,923 1,020,421 998,438 998,438 9,038,485 9.95%97.85%
Other Operating Revenue 617,654 51,471 82,398 82,398 535,256 13.34%160.09%
Total Operating Revenue:29,435,578 2,944,357 2,793,547 2,793,547 26,642,032 9.49%
Revenue (Non-Operating):
Interest 100,000 8,333 7,656 7,656 92,344 7.66%91.87%
Property Tax 1,450,000 0 - - 1,450,000 0.00% 0.00%
Other Non-Operating Revenue 604,600 50,383 28,438 28,438 576,162 4.70%56.44%
Total Non-Operating Revenue:2,154,600 58,717 36,094 36,094 2,118,506 1.68%
Total Revenue 31,590,178 3,003,074 2,829,641 2,829,641 28,760,538 8.96%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)13,179,477 1,557,598 1,558,819 1,558,819 11,620,659 11.83%100.08%
Salary Related Expenses 8,279,036 1,090,289 892,464 892,464 7,386,572 11.03%81.86%
Supplies & Services:
Communications 242,840 20,237 10,637 10,637 232,203 4.38%52.56%
Contractual Services 479,560 39,963 34,911 34,911 444,649 7.28%87.36%
Data Processing 245,351 20,446 21,638 21,638 223,713 8.82%105.83%
Dues & Memberships 88,878 7,407 24,064 24,064 64,814 27.08%324.90%
Fees & Permits 234,630 19,553 1,207 1,207 233,424 0.51%6.17%
Board Election 228,780 74,400 72,539 72,539 156,241 0.00%97.50%
Insurance 266,296 22,191 20,916 20,916 245,380 7.85% 94.25%
Materials 724,812 60,401 59,738 59,738 665,074 8.24%98.90%
District Activities, Emp Recognition 27,017 2,251 447 447 26,571 1.65%19.83%
Maintenance 393,245 32,770 3,463 3,463 389,782 0.88%10.57%
Non-Capital Equipment 158,364 13,197 3,048 3,048 155,316 1.92%23.10%
Office Expense 40,216 3,351 134 134 40,083 0.33%3.98%
Professional Services 562,720 46,893 34,720 34,720 528,000 6.17%74.04%
Training 69,299 5,775 4,606 4,606 64,693 6.65%79.77%
Travel & Conferences 111,263 9,272 3,716 3,716 107,546 3.34%40.08%
Uncollectible Accounts 32,550 2,712 (1,115) (1,115) 33,665 -3.43%-41.11%
Utilities 116,250 9,687 14,006 14,006 102,243 12.05%144.58%
Vehicle Equipment 322,916 26,910 28,632 28,632 294,284 8.87%106.40%
Supplies & Services Sub-Total 4,344,986 417,417 337,307 337,307 4,007,679 7.76%
Total Operating Expenses 25,803,499 3,065,304 2,788,590 2,788,590 23,014,909 10.81%
Expenses (Non-Operating):
Interest on Long Term Debt 1,721,884 143,490 133,981 133,981 1,587,903 7.78%93.37%
Other Expense 23,000 1,917 (8,683) (8,683) 31,683 -37.75%-453.03%
Total Non-Operating Expenses:1,744,884 145,407 125,298 125,298 1,619,586 7.18%
Total Expenses 27,548,383 3,210,711 2,913,888 2,913,888 24,634,495 10.58%
Net Income (Loss) Before Capital Contributions 4,041,795 (207,637)(84,247) (84,247)4,126,042 -2.08%
Capital Contributions - - - - - 0.00%
Net Income (Loss) Before Depreciation 4,041,795 (207,637)(84,247)(84,247)4,126,042 -2.08%
Depreciation & Amortization 6,198,432 516,536 481,649 481,649 5,716,783 7.77%93.25%
Total Net Income (Loss)($2,156,637)($724,173)($565,896)($565,896)($1,590,741)26.24%
Yorba Linda Water District
Water Fund
For the Month Ending July 31, 2016
Annual YTD July YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over)% of Annual % of YTD
FY 2017 FY 2017 FY 2017 FY 2017 Budget Budget Budget
Revenue (Operating):
Sewer Charge Revenue $1,852,837 $154,403 $134,780 $134,780 1,718,057 7.27% 87.29%
Locke Ranch Assessments 198,400 16,533 - - 198,400 0.00% 0.00%
Other Operating Revenue 37,171 3,098 11,896 11,896 25,275 32.00% 384.04%
Total Operating Revenue: 2,088,408 174,034 146,676 146,676 1,941,732 7.02%
Revenue (Non-Operating):
Interest 15,000 1,250 3 3 14,997 0.02% 0.21%
Other Non-Operating Revenue 11,925 994 (2,031) (2,031) 13,956 -17.03% -204.33%
Total Non-Operating Revenue: 26,925 2,244 (2,028) (2,028) 28,953 -7.53%
Total Revenue 2,115,333 176,278 144,648 144,648 1,970,685 6.84%
Expenses (Operating):
Salary Related Expenses 974,587 111,351 94,838 94,838 879,749 9.81% 85.17%
Supplies & Services:
Communications 16,085 1,340 794 794 15,291 4.94% 59.24%
Contractual Services 78,705 6,559 2,628 2,628 76,077 3.34% 40.07%
Data Processing 18,358 1,530 1,629 1,629 16,729 8.87% 106.48%
Dues & Memberships 6,907 576 1,811 1,811 5,096 26.22% 314.64%
Fees & Permits 16,795 1,400 80 80 16,715 0.48%5.72%
Board Election 17,220 5,600 5,460 5,460 11,760 0.00% 97.50%
Insurance 20,044 1,670 1,574 1,574 18,470 7.85%94.23%
Materials 104,688 8,724 649 649 104,039 0.62% 7.44%
District Activities, Emp Recognition 2,034 170 34 34 2,000 1.67% 20.06%
Maintenance 171,585 14,299 666 666 170,919 0.39% 4.65%
Non-Capital Equipment 36,687 3,057 291 291 36,396 0.79% 9.52%
Office Expense 2,884 240 10 10 2,874 0.35% 4.16%
Professional Services 35,280 2,940 2,237 2,237 33,043 6.34% 76.09%
Training 7,786 649 855 855 6,931 10.98% 131.77%
Travel & Conferences 13,702 1,142 280 280 13,422 2.04%24.52%
Yorba Linda Water District
Sewer Fund
For the Month Ending July 31, 2016
Travel & Conferences 13,702 1,142 280 280 13,422 2.04%24.52%
Uncollectible Accounts 2,450 204 (139) (139) 2,589 -5.67% -68.08%
Utilities 9,550 796 1,112 1,112 8,437 11.65% 139.79%
Vehicle Equipment 63,484 5,290 3,708 3,708 59,776 5.84% 70.08%
Supplies & Services Sub-Total 624,243 56,185 23,679 23,679 600,565 3.79%
Total Operating Expenses 1,598,830 167,536 118,517 118,517 1,480,313 7.41%
Expenses (Non-Operating):
Interest Expense - - - - - 0.00%
Other Expense - - - - - 0.00%
Total Non-Operating Expenses: - - - - - 0.00%
Total Expenses 1,598,830 167,536 118,517 118,517 1,480,313 7.41%
Net Income (Loss) Before Capital Contributions 516,503 8,742 26,131 26,131 490,372 5.06%
Capital Contributions - - - 0 0 0.00%
Net Income (Loss) Before Depreciation 516,503 8,742 26,131 26,131 490,372 5.06%
Depreciation & Amortization 1,362,840 113,570 110,764 110,764 1,252,076 8.13% 97.53%
Total Net Income (Loss)($846,337)($104,828)($84,633)($84,633)($761,704)10.00%
Annual YTD Aug YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over)% of % of YTD
FY 2016 FY 2016 FY 2016 FY 2016 Budget Budget Budget
Revenue (Operating):
Water Revenue (Residential) $13,907,406 $2,920,555 $1,388,443 $2,602,967 11,304,439 18.72% 89.13%
Water Revenue (Commercial & Fire Det.) 1,874,818 393,712 166,400 323,322 1,551,496 17.25% 82.12%
Water Revenue (Landscape/Irrigation) 2,998,777 629,743 393,282 734,546 2,264,231 24.49% 116.64%
Water Revenue (Service Charge) 10,036,923 1,848,467 826,175 1,824,613 8,212,310 18.18% 98.71%
Sewer Charge Revenue 1,852,837 308,806 156,896 291,676 1,561,161 15.74% 94.45%
Locke Ranch Assessments 198,400 33,066.67 74 74 198,326 0.04% 0.22%
Other Operating Revenue 654,825 109,138 87,281 181,575 473,250 27.73% 166.37%
Total Operating Revenue: 31,523,986 6,243,487 3,018,551 5,958,773 25,565,213 18.90%
Revenue (Non-Operating):
Interest 115,000 19,167 22,630 30,289 84,711 26.34% 158.03%
Property Tax 1,450,000 4,930 2,528 2,528 1,447,472 0.17% 51.28%
Other Non-Operating Revenue 616,525 102,754 14,980 41,387 575,139 6.71% 40.28%
Total Non-Operating Revenue: 2,181,525 126,851 40,138 74,204 2,107,322 3.40%
Total Revenue 33,705,511 6,370,338 3,058,689 6,032,977 27,672,535 17.90%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 13,179,477 2,981,449 1,365,473 2,924,291 10,255,186 22.19% 98.08%
Salary Related Expenses 9,253,623 1,933,638 645,201 1,632,503 7,621,120 17.64%84.43%
Supplies & Services 4,969,229 867,205 372,789 733,774 4,235,455 14.77% 84.61%
Total Operating Expenses 27,402,329 5,782,292 2,383,463 5,290,568 22,111,761 19.31%
Expenses (Non-Operating):
Interest on Long Term Debt 1,721,884 286,981 133,981 267,961 1,453,924 15.56% 93.37%
Other Expense 23,000 3,833 (17,706) (26,389) 49,389 -114.73% -688.41%
Total Non-Operating Expenses: 1,744,884 290,814 116,275 241,572 1,503,312 13.84%
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For the 2 Months Ending August 31, 2016
Total Expenses 29,147,213 6,073,106 2,499,738 5,532,140 23,615,073 18.98%
Net Income (Loss) Before Capital Contributions 4,558,298 297,232 558,951 500,837 4,057,461 10.99%
Capital Contributions - - 638 638 638 0.00%
Net Income (Loss) Before Depreciation 4,558,298 297,232 559,589 501,475 4,058,100 11.00%
Depreciation & Amortization 7,561,272 1,260,212 592,413 1,184,826 6,376,446 15.67% 94.02%
Total Net Income (Loss)($3,002,974)($962,980)($32,824)($683,351)($2,319,623)22.76%
Annual YTD Aug YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over)% of Annual % of YTD
FY 2016 FY 2016 FY 2016 FY 2016 FY Budget Budget Budget
Revenue (Operating):
Water Revenue (Residential) $13,907,406 $2,920,555 $1,388,443 $2,602,967 11,304,439 18.72% 89.13%
Water Revenue (Commercial & Fire Det.) 1,874,818 393,712 166,400 323,322 1,551,496 17.25% 82.12%
Water Revenue (Landscape/Irrigation) 2,998,777 629,743 393,282 734,546 2,264,231 24.49% 116.64%
Water Revenue (Service Charge) 10,036,923 1,848,467 826,175 1,824,613 8,212,310 18.18% 98.71%
Other Operating Revenue 617,654 102,942 79,325 161,723 455,931 26.18% 157.10%
Total Operating Revenue: 29,435,578 5,895,419 2,853,625 5,647,171 23,788,407 19.18%
Revenue (Non-Operating):
Interest 100,000 16,667 20,881 28,537 71,463 28.54%171.22%
Property Tax 1,450,000 4,930 2,528 2,528 1,447,472 0.17% 51.28%
Other Non-Operating Revenue 604,600 100,767 12,359 40,797 563,803 6.75% 40.49%
Total Non-Operating Revenue: 2,154,600 122,363 35,768 71,862 2,082,738 3.34%
Total Revenue 31,590,178 6,017,783 2,889,393 5,719,033 25,871,145 18.10%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power) 13,179,477 2,981,449 1,365,473 2,924,291 10,255,186 22.19% 98.08%
Salary Related Expenses 8,279,036 1,743,811 569,852 1,462,316 6,816,720 18.12% 83.86%
Supplies & Services:
Communications 242,840 40,473 19,600 30,237 212,603 12.45% 74.71%
Contractual Services 479,560 79,927 37,107 72,018 407,542 15.02% 90.11%
Data Processing 245,351 40,892 (1,436) 20,203 225,149 8.23% 49.40%
Dues & Memberships 88,878 14,813 4,531 28,595 60,283 32.17% 193.04%
Fees & Permits 234,630 39,105 14,278 15,484 219,146 6.60% 39.60%
Board Election 228,780 74,400 - 72,539 156,241 0.00% 97.50%
Insurance 266,296 44,383 24,841 45,758 220,538 17.18% 103.10%
Materials 724,812 120,802 66,577 126,315 598,497 17.43% 104.56%
District Activities, Emp Recognition 27,017 4,503 1,026 1,472 25,545 5.45% 32.69%
Maintenance 393,245 65,541 29,876 33,340 359,905 8.48% 50.87%
Non-Capital Equipment 158,364 26,394 8,865 11,913 146,451 7.52% 45.14%
Office Expense 40,216 6,703 1,693 1,826 38,390 4.54%27.24%
Yorba Linda Water District
Water Fund
For the 2 Months Ending August 31, 2016
Office Expense 40,216 6,703 1,693 1,826 38,390 4.54%27.24%
Professional Services 562,720 93,787 69,389 104,109 458,611 18.50% 111.01%
Training 69,299 11,550 1,598 6,204 63,095 8.95% 53.72%
Travel & Conferences 111,263 18,544 4,695 8,411 102,852 7.56% 45.36%
Uncollectible Accounts 32,550 5,425 4,896 3,781 28,769 11.62% 69.70%
Utilities 116,250 19,375 12,174 26,180 90,070 22.52% 135.12%
Vehicle Equipment 322,916 53,819 43,626 72,259 250,656 22.38% 134.26%
Supplies & Services Sub-Total 4,344,986 760,434 343,335 680,644 3,664,342 15.67%
Total Operating Expenses 25,803,499 5,485,695 2,278,660 5,067,251 20,736,248 19.64%
Expenses (Non-Operating):
Interest on Long Term Debt 1,721,884 286,981 133,981 267,961 1,453,923 15.56% 93.37%
Other Expense 23,000 3,833 (17,706) (26,389) 49,389 -114.73% -688.41%
Total Non-Operating Expenses: 1,744,884 290,814 116,275 241,572 1,503,312 13.84%
Total Expenses 27,548,383 5,776,509 2,394,935 5,308,823 22,239,560 19.27%
Net Income (Loss) Before Capital Contributions 4,041,795 241,274 494,458 410,210 3,631,585 10.15%
Capital Contributions - - - - - 0.00%
Net Income (Loss) Before Depreciation 4,041,795 241,274 494,458 410,210 3,631,585 10.15%
Depreciation & Amortization 6,198,432 1,033,072 481,649 963,298 5,235,134 15.54% 93.25%
Total Net Income (Loss)($2,156,637)($791,798)$12,809 ($553,088)($1,603,549)25.65%
Annual YTD Aug YTD YTD YTD YTD
Budget Budget Actual Actual Under(Over)% of Annual % of YTD
FY 2017 FY 2017 FY 2017 FY 2017 Budget Budget Budget
Revenue (Operating):
Sewer Charge Revenue $1,852,837 $308,806 $156,896 $291,676 1,561,161 15.74% 94.45%
Locke Ranch Assessments 198,400 33,067 74 74 198,326 0.04% 0.22%
Other Operating Revenue 37,171 6,195 7,956 19,852 17,319 53.41% 320.44%
Total Operating Revenue: 2,088,408 348,068 164,926 311,602 1,776,806 14.92%
Revenue (Non-Operating):
Interest 15,000 2,500 1,749 1,753 13,247 11.69% 70.14%
Other Non-Operating Revenue 11,925 1,988 2,621 591 11,335 4.95% 29.71%
Total Non-Operating Revenue: 26,925 4,488 4,370 2,344 24,581 8.71%
Total Revenue 2,115,333 352,556 169,296 313,946 1,801,387 14.84%
Expenses (Operating):
Salary Related Expenses 974,587 189,827 75,349 170,188 804,399 17.71% 89.65%
Supplies & Services:
Communications 16,085 2,681 1,475 2,269 13,816 14.11% 84.64%
Contractual Services 78,705 13,118 2,780 5,408 73,297 6.87% 41.23%
Data Processing 18,358 3,060 (108) 1,521 16,837 8.29% 49.71%
Dues & Memberships 6,907 1,151 341 2,152 4,755 31.16% 186.94%
Fees & Permits 16,795 2,799 935 1,014 15,781 6.04%36.23%
Board Election 17,220 5,600 - 5,460 11,760 0.00% 97.50%
Insurance 20,044 3,341 1,870 3,444 16,600 17.18%103.09%
Materials 104,688 17,448 5,728 6,377 98,311 6.09% 36.55%
District Activities, Emp Recognition 2,034 339 77 111 1,923 5.46% 32.74%
Maintenance 171,585 28,598 5,004 5,669 165,916 3.30% 19.82%
Non-Capital Equipment 36,687 6,115 1,250 1,541 35,146 4.20% 25.20%
Office Expense 2,884 481 127 137 2,747 4.75%28.50%
Yorba Linda Water District
Sewer Fund
For the 2 Months Ending August 31, 2016
Office Expense 2,884 481 127 137 2,747 4.75%28.50%
Professional Services 35,280 5,880 2,014 4,251 31,029 12.05% 72.30%
Training 7,786 1,298 118 973 6,813 12.50% 74.98%
Travel & Conferences 13,702 2,284 311 591 13,111 4.31% 25.88%
Uncollectible Accounts 2,450 408 863 724 1,726 29.55% 177.31%
Utilities 9,550 1,592 974 2,086 7,464 21.84% 131.06%
Vehicle Equipment 63,484 10,581 5,696 9,403 54,080 14.81% 88.87%
Supplies & Services Sub-Total 624,243 106,771 29,454 53,131 571,112 8.51%
Total Operating Expenses 1,598,830 296,597 104,804 223,319 1,375,511 13.97%
Expenses (Non-Operating):
Interest Expense - - - - - 0.00%
Other Expense - - - - - 0.00%
Total Non-Operating Expenses: - - - - - 0.00%
Total Expenses 1,598,830 296,597 104,804 223,319 1,375,511 13.97%
Net Income (Loss) Before Capital Contributions 516,503 55,958 64,492 90,627 425,876 17.55%
Capital Contributions - - 638 638 638 0.00%
Net Income (Loss) Before Depreciation 516,503 55,958 65,130 91,265 426,514 17.67%
Depreciation & Amortization 1,362,840 227,140 110,764 221,528 1,141,312 16.25% 97.53%
Total Net Income (Loss)($846,337)($171,182)($45,634)($130,263)($716,074)15.39%
ITEM NO. 7.7
AGENDA REPORT
Meeting Date: October 27, 2016
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Kelly McCann, Senior Accountant
Subject:Cash and Investment Report for Month Ending September 30, 2016
SUMMARY:
Government Code Section 530607, et. seq., requires the person delegated to invest funds to make a
monthly report of investments to the legislative body.
STAFF RECOMMENDATION:
That the Board of Directors receive and file the Investment Reports for the Month Ending September 30,
2016.
DISCUSSION:
The Investment Portfolio Report presents the market value and percent yield for all District investments by
institution. The Investment Report Summary includes budget and actual interest and average term portfolio
information as well as market value broken out by reserve categories.
The total yield for the month ending September 30, 2016 is 0.94%.
The overall decrease in the investment balance from the previous month is approximately $8,080,000. A
larger balance change includes a decrease in Water Capital Project Reserve Fund of $7,086,002, due to the
Wells Fargo Line of Credit pay-off of $7,000,000 and transferring $101,889 to Water Operating Fund, to cover
capital expenses. In addition, a large decrease in Water Operating Fund of $1,012,595 is due to the
September 30, 2016 Debt Service principal and interest payment of $1,908,000. There is a net decrease in
the Conservation Reserve Fund of $53,749 between the months of August and September, but note
that Conservation Reserve Fund has covered a total of $73,609 in expenses for the first quarter of the current
fiscal year for conservation and leak detection costs (including salary related, as well as supplies and services
related expenditures).
STRATEGIC PLAN:
FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and
Transparent Manner to the Board of Directors and Member Agencies
ATTACHMENTS:
Name:Description:Type:
Invst_Rpt_9-16.xlsx Cash and Investments Report for the Period Ending
September 30, 2016 Backup Material
Invst_Agenda_Backup_-_September_2016.xlsx Cash and Investments Summary Report - September 30, 2016 Backup Material
Market %Date of Percent
Value Par of Total Institution Maturity Yield
Checking Account:
461,814$ 461,814$ Wells Fargo Bank
6,614 6,614 Pershing
468,427$ 468,427$ 1.38% Total 0.00%
Money Market Accounts:
36,796 36,796 US Bank (Revenue Bonds) 0.10%
552,461 552,461 Bank of the West 0.08%
589,257$ 589,257$ 1.73% Total 0.08%
Federal Agency Securities:
500,430$ 500,000 Federal Home Loan Bank 06/12/18 0.99%
500,295$ 500,000 Federal Home Loan Bank 06/13/18 1.09%
500,010$ 500,000 Federal Home Loan Bank 11/26/19 1.34%
2,119,780$ 2,124,676$ Federal Home Loan Bank 05/24/17 0.87%
3,620,515$ 3,624,676$ 10.65% Total 0.98%
Certificates of Deposits:
249,855$ 248,000$ CIT Bank, Salt Lake 05/22/18 1.19%
249,773$ 248,000 Discover 05/22/18 1.19%
249,290$ 248,000 Goldman Sachs Bank 05/22/18 1.19%
249,900$ 248,000 Beal Bank 05/23/18 0.99%
250,567$ 247,000 Barclays Bank 04/30/18 0.98%
250,128$ 248,000 State Bank of India 05/14/18 1.14%
249,087$ 249,000 Webster Bank 05/03/18 0.89%
249,855$ 248,000 American Express Centurion Bank 05/23/18 1.19%
248,888$ 248,000 GE Capital Bank 05/24/18 1.09%
249,261$ 249,000 Merrick Bank 05/24/17 0.74%
248,496$ 248,000 BMW Bank 05/24/17 0.89%
249,102$ 249,000 Oriental Bank & Trust 05/29/18 1.04%
249,095$ 249,000 Silvergate Bank 05/30/18 0.99%
Yorba Linda Water District
Cash & Investment Portfolio Report
September 30, 2016
249,481$ 249,000 Enterprise Bank & TR Co Lowell 05/30/18 0.99%
249,209$ 249,000 Safra National Bank 05/31/18 0.99%
248,476$ 248,000 Townebank Portsmouth 05/31/18 0.99%
249,092$ 249,000 Mascoma Savings Bank 05/29/18 0.99%
100,611$ 100,000 Ally Bank Midvale Utah 12/11/17 1.54%
200,596$ 200,000 World's Foremost Bk Sydney 05/28/19 1.29%
249,711$ 248,000 Capital One Bk USA Natl Assn 05/13/19 1.19%
250,713$ 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.63%
247,898$ 248,000 EnerBank USA Salt Lake City 08/26/20 1.30%
247,921$ 248,000 EverBank Jacksonville Fla CTF 08/30/19 1.15%
179,980$ 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.25%
247,727$ 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.60%
5,964,712$ 5,943,000$ 17.55% Total 1.12%
Pooled Investment Accounts:
4,940,400$ 4,940,400$ Local Agency Investment Fund 0.63%
316,340 316,336 CalTRUST Short Term 0.81%
18,093,558 18,059,132 CalTRUST Medium Term 1.01%
23,350,299$ 23,315,868$ 68.69%0.93%
33,993,210$ 33,941,229$ 100% Total Investments 0.94%
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.
9/30/16
________________________________
Kelly D. McCann, Senior Accountant
Below is a chart summarizing the yields as well as terms and maturities for the month of September 2016:
Average # of
Month Portfolio Days to
of 2016 Yield Maturity
September 0.94% 205
Below are charts comparing operating fund interest for current and prior fiscal years.
Actual Interest 9/30/2015 9/30/2016
Monthly - September 15,852$ 24,431$
Year-to-Date 38,352$ 54,720$
Budget 2015/2016 2016/2017
Interest Budget, September YTD 23,250$ 37,500$
Interest Budget, Annual 93,000$ 115,000$
Interest earned on investments is recorded in the fund that owns the investment.
The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds
is as follows:
Total of $33.9 million in cash and investments which is split between minimum reserve requirements and what is available
to meet current year obligations (operating costs, debt service, capital costs).
Reserve Cash and
Requirements Investments
August 2016 % Alloc September 2016 % Alloc "Conditional Available for
Fund Description Balance 8/31/2016 Balance 9/30/2016 Use" CY Obligations
Water Operating Reserve 4,353,932$ 10.52%3,467,739$ 10.34%4,132,257$ (280,878)
Cash & Investment Summary Report
Cash & Investment Summary Comparison Between Current and Previous Month
Water Operating Reserve 4,353,932$ 10.52%3,467,739$ 10.34%4,132,257$ (280,878)
Water Emergency Reserve 1,043,001 2.52% 1,043,874 3.11%1,042,888 986
Water Capital Project Reserve 25,037,048 60.49% 17,951,045 53.54% 1,820,000 16,131,045
Water Reserve for Debt Service 2,723,509 6.58% 2,772,175 8.27% 2,723,509 48,666
Maintenance Reserve 200,252 0.48% 200,252 0.60% 200,000 252
Water Employee Liability Reserve 371,998 0.90% 371,992 1.11% 372,000 (8)
Conservation Reserve 1,560,900 3.77% 1,507,151 4.49% 0 1,507,151
COP Revenue Bond 2008 - Reserve 2,166,844 5.24% 2,156,576 6.43% 2,147,096 9,480
Sewer Operating Reserve 106,066 0.26% 206,079 0.61% 239,825 44,428
Sewer Emergency Reserve 1,033,825 2.50% 999,664 2.98% 1,000,000 (336)
Sewer Employee Liability Reserve 28,000 0.07% 28,000 0.08% 28,000 0
Sewer Capital Project Reserve 2,765,448 6.68% 2,826,851 8.43% 345,000 2,481,851
41,390,822$ 100.00% 33,531,397$ 100.00% 14,050,575$ 19,942,635
Water Operating 510,043 383,640
Sewer Operating 173,275 78,174
683,318 461,814
Totals 42,074,140$ 33,993,210$
Wells Fargo Bank Checking
ITEM NO. 7.8
AGENDA REPORT
Meeting Date: October 27, 2016
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Richard Cabadas, Accounting
Assistant I
Subject:Directors and General Manager Fees and Expenses Report for First Quarter
FY 2016/17
SUMMARY:
Presented are the First Quarter Directors and General Manager Fees and Expenses Report for FY
2016/17.
STAFF RECOMMENDATION:
That the Board of Directors receive and file the Directors and General Manager Fees and Expenses
Report for First Quarter FY 2016/17.
ATTACHMENTS:
Name:Description:Type:
Travel___Expense_Report.pdf Travel and Expense Detail - 1st Qtr FY 2016-17 Backup Material
BOD___GM_Qtr_Summary.pdf BOD GM QTR Summary Backup Material
GL Trip Trip Trip Event/
Director Date Date Name Location Meals Lodging Travel Conf. Fee Misc.Total trip Total
Beverage 7/29/16 7/24/16 OCSD - Board meeting Fountain Valley, CA -$ -$ 24$ -$ -$ 24$
8/29/16 8/6/16 OCSD - Board meeting Fountain Valley, CA -$ -$ 24$ -$ -$ 24$
-$ -$ -$ -$ -$ -$
-$ 49$
Collett -$ -$ -$ -$ -$ -$
-$ -$
Hawkins 7/29/16 7/8/16 WACO meeting Fountain Valley, CA -$ -$ 26$ -$ -$ 26$
9/30/16 9/9/16 WACO meeting Fountain Valley, CA -$ -$ 26$ -$ -$ 26$
9/30/16 9/29/16 ISDOC Fountain Valley, CA -$ -$ -$ 20$ -$ 20$
-$ -$ -$ -$ -$ -$
-$ 73$
Kiley
7/29/16 7/8 & 7/15/16 WACO & OCWD meeting Fountain Valley, CA -$ -$ 49$ -$ -$ 49$
8/31/16 8/3 & 8/5/16 WACO & OCWD meeting Fountain Valley, CA -$ -$ 49$ -$ -$ 49$
8/31/16 8/24-26/16 UWI Conference San Diego, CA 68$ 539$ 117$ 475$ 40$ 1,238$
9/13/16 10/10-13/16 CSDA Conference San Diego, CA -$ -$ -$ 580$ -$ 580$
9/29/16 9/9, 21, 29/16 WACO & OCWD meeting Fountain Valley, CA -$ -$ 73$ -$ -$ 73$
9/30/16 10/24-27/16 AWWA CA/NV Conference San Diego, CA -$ -$ -$ 495$ -$ 495$
9/30/16 9/29/16 ISDOC meeting Fountain Valley, CA -$ -$ -$ 17$ -$ 17$
-$ -$ -$ -$ -$ -$
-$ 2,500$
Melton -$ -$ -$ -$ -$ -$
-$ -$
Total Director's 68$ 539$ 388$ 1,587$ 40$ 2,622$ 2,622$
General Manager
Marcantonio 7/11/16 8/4/16 ACWA Regional 8 Program Los Angeles, Ca -$ -$ 25$ 50$ -$ 75$
7/29/16 7/1-31/16 Meeting at various locations Multiple locations -$ -$ 66$ -$ -$ 66$
8/15/16 11/29-12/01/16 ACWA Conference Anaheim, CA -$ -$ -$ 695$ -$ 695$
8/31/16 8/1-31/16 Meeting at various locations Multiple locations -$ -$ 72$ -$ -$ 72$
8/31/16 8/24-26/16 UWI Conference San Diego, CA 47$ 494$ 111$ -$ 20$ 672$
9/29/16 9/7,15/16 MWDOC & OCWD Fountain Valley, Ca -$ -$ 38$ -$ -$ 38$
9/30/16 12/14-16/16 CRWUA Conference Las Vegas, NV -$ 141$ -$ 475$ -$ 616$
Total GM 47$ 635$ 312$ 1,220$ 20$ 2,234$ 2,234$
Total Director's & GM 115$ 1,173$ 700$ 2,807$ 60$ 4,856$ 4,856$
DIRECTOR'S & GENERAL MANAGER'S RECAP OF TRAVEL/CONFERENCE EXPENSES
FIRST QUARTER OF FY 2016-17
JULY - SEPTEMBER 2016
YORBA LINDA WATER DISTRICT
DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES
1ST QUARTER REPORT FROM 07-01-2016 TO 09-30-2016
FISCAL YEAR 2016-2017
BEVERAGE COLLETT HAWKINS KILEY MELTON SUB-TOTAL MARCANTONIO TOTAL
REGULAR MEETINGS ATTENDED 5 6 5 5 5 26
COMMITTEE MEETINGS ATTENDED 6 5 0 2 2 15
OFF SITE MEETINGS ATTENDED 6 3 3 6 8 26
SPECIAL MEETINGS ATTENDED 3 3 3 3 3 15
OTHER MEETINGS ATTENDED 0 0 1 5 1 7
TOTAL MEETINGS ATTENDED QTD 20 17 12 21 19 89 89
DIRECTOR FEES QTD $3,000 $2,550 $1,800 $3,150 $2,850 $13,350 $13,350
MEETING FEES BUDGET QTD $4,500 $4,500 $4,500 $4,500 $4,500 $22,500 $22,500
TRAVEL & CONF. EXPENSES QTD $49 $0 $73 $2,500 $0 $2,622 $2,622
TRAVEL & CONF. BUDGET QTD $1,378 $1,378 $1,378 $1,378 $1,378 $6,888 $6,888
DIR.FEES AND EXPENSES QTD $3,049 $2,550 $1,873 $5,650 $2,850 $15,972 $15,972
FEES AND EXPENSES BUDGET QTD $5,878 $5,878 $5,878 $5,878 $5,878 $29,388 $29,388
GEN MGR EXPENSES QTD $2,234 $2,234
GEN MGR TRAVEL/CONF. BUDGET QTD $6,110 $6,110
TOTAL FEES & EXPENSES QTD $3,049 $2,550 $1,873 $5,650 $2,850 $15,972 $2,234 $18,206
TOTAL FEES & EXPENSES BUDGET QTD $5,878 $5,878 $5,878 $5,878 $5,878 $29,388 $6,110 $35,498
ITEM NO. 7.9
AGENDA REPORT
Meeting Date: October 27, 2016 Budgeted:N/A
To:Board of Directors
Funding Source:Developer Funded
From:Marc Marcantonio, General
Manager
Account No:1/2-2600
Job No:201613
Presented By:Steve Conklin, Engineering
Manager
Dept:Engineering
Reviewed by Legal:N/A
Prepared By:Ariel Bacani, Engineering
Technician II
CEQA Compliance:N/A
Subject:Terms and Conditions for Water and Sewer Service with National Community
Renaissance
SUMMARY:
National Community Renaissance proposes to develop their "Oakcrest Heights" project, which consists of a
54-unit apartment complex and pre-school building on 3.2 acres. The project is located at the southwest
corner of Oakcrest Circle and Eastpark Drive, within the east end of the Savi Ranch shopping center, as
shown in the attached exhibit.
STAFF RECOMMENDATION:
That the Board of Directors approve the Terms and Conditions for Water and Sewer Service with National
Community Renaissance, Job No. 201613.
COMMITTEE RECOMMENDATION:
DISCUSSION:
The District has an existing Zone 2, 12-inch water pipeline in Oakcrest Circle that is adequate in size and of
sufficient pressure to serve the project. The applicant requests to install a double-check detector assembly
for their private fire suppression system, along with residential, commercial and irrigation water services, as
depicted in the attached exhibit.
The District has an existing 8-inch sewer main in Oakcrest Circle that is adequate in size to serve the
proposed apartment complex. The applicant is conditioned to construct a new sewer lateral into
a new manhole in Oakcrest Circle.
The proposed Terms and Conditions for Water and Sewer Service with National Community Renaissance
are attached for your consideration.
ATTACHMENTS:
Name:Description:Type:
201613_TC.pdf Terms and Conditions Agreement
201613_Exhibit.pdf Exhibit Exhibit
Date: OCTOBER 27, 2016
YORBA LINDA WATER DISTRICT
TERMS AND CONDITIONS
FOR WATER AND SEWER SERVICE
NAME OF APPLICANT: NATIONAL COMMUNITY RENAISSANCE
LOCATION OF PROJECT: 22733, 22735 & 22737 OAKCREST CIRCLE, YORBA LINDA
TRACT NUMBER: N/A JOB NUMBER: 201613 UNIT(S): 54
The applicant will be required to complete to the satisfaction of the District the following
items that have an “X” following the number.
1) X The applicant shall provide the District with a copy of the Grant Deed or
Title Report of the property to be served.
2) X The applicant shall include information deemed necessary by the District in
the event the applicant is required to file a Department of Real Estate Tax
Disclosure statement.
3) X The applicant shall submit two (2) sets of the improvement plans to the
District for plan check processing.
a) Improvement Plans
b) Grading Plans
c) Tract, Parcel or Vesting Map
d) Landscaping Plans
4) X Improvement Plans submitted for plan check shall comply with the submittal
requirements established by the YLWD Engineering Department.
5) X The applicant shall dedicate or obtain all easements deemed necessary by
the District in accordance with the Rules and Regulations of the District. All
easement documents shall be prepared under the supervision of and
stamped by a Professional Land Surveyor or a Registered Civil Engineer
(licensed prior to January 1, 1982) licensed to practice in the State of
California.
6) X The applicant shall provide the District with a copy of the Recorded
Tract/Parcel Map(s) or Easement Documents illustrating all District
easements required by Term and Condition No. 7, prior to requesting
occupancy releases.
7) X The applicant shall prepare and process all easements to be quitclaimed by
the District in accordance with the Rules and Regulations of the District.
8) X The applicant shall furnish the District with a 24-hour emergency telephone
number prior to the District’s approval of the construction plans.
Page 2 of 5
NAME OF APPLICANT: NATIONAL COMMUNITY RENAISSANCE
LOCATION OF PROJECT: 22733, 22735 & 22737 OAKCREST CIRCLE, YORBA LINDA
9) X The applicant shall notify the District 48 hours prior to initiating any work
related to required or proposed improvements.
10) X The applicant shall complete a Temporary Construction Meter Permit
application for all water to be used in construction work and all water used
under such permit shall be taken from the approved construction meter.
11) X The applicant shall provide per the District specifications one complete set
of "As Built" mylars and electronic copy of ACAD drawings (version 2008 or
later) for the Water facilities.
12) X The applicant shall complete an Application to and Agreement for Water
Service.
13) X The applicant shall pay all of the water fees as required by the Rules and
Regulations of the District.
14) X The applicant shall pay meter fees associated with the installation of radio
read meters for this project.
15) X The applicant shall comply with Yorba Linda Water District Rules and
Regulations for Water Service.
16) X The applicant shall provide the District with a set of plans stamped and
approved by the Orange County Fire Authority, or fire agency having
jurisdiction, that identifies approved fire hydrant locations. Such approved
plan must be submitted to the District before staff will initiate a District plan
check for water improvements.
17) X The applicant shall have all water facilities designed in accordance with the
District's Water Facilities Plan and the District’s Standard Specifications. All
design plans shall be prepared under the supervision of and stamped by a
Registered Civil Engineer licensed to practice in the State of California.
18) X The applicant’s water facilities (on-site) shall be Privately owned and
maintained.
19) X The applicant shall be required to conduct flow tests at their cost in the
event the Orange County Fire Authority requires a flow test. A District
representative shall be present to witness the flow test.
20) X The applicant shall comply with all additional District requirements, relative
to the fire protection system, fire hydrant construction and fire hydrant
locations.
21) The applicant shall install one (1) water Sampling Station(s) in conformance
with the District’s Standard Plans.
Page 3 of 5
NAME OF APPLICANT: NATIONAL COMMUNITY RENAISSANCE
LOCATION OF PROJECT: 22733, 22735 & 22737 OAKCREST CIRCLE, YORBA LINDA
22) X The applicant shall provide a completed Surety Bond for the water facilities
prior to the District signing the Water Improvement Plans. The applicant
shall also provide to the District an estimate of the construction costs of the
proposed water facilities.
23) X The applicant shall install the curb and gutter a minimum of one week prior
to the installation of the water main and services.
24) X All existing water services that are not useable in the new plan shall be cut
and plugged at the main line.
25) X The applicant shall coordinate through the District all connections of new
water facilities to the existing District facilities.
26) X The applicant shall provide a written copy of the Bacteriological Report prior
to occupancy releases certifying that the water meets the Health
Department's requirements.
27) X The applicant shall adjust and raise to grade all valve covers within the
limits of this project.
28) X The applicant shall install a pressure regulator in all dwellings that have
over 80 p.s.i. static water pressure in accordance with the appropriate
building codes.
29) X The applicant shall complete a Temporary Water Permit for all water that
will be used through the new water services to serve the new dwellings.
30) X The applicant shall install a District approved backflow device in connection
with any private fire suppression sprinkler facilities that may be required by
the Orange County Fire Authority or fire agency having jurisdiction.
31) X The applicant shall install a reduced pressure principle backflow prevention
device on all commercial buildings and landscape services.
32) X The applicant shall install and provide a written test report to the District for
each backflow device certifying that the backflow devices are operating
properly prior to the water meters being turned on for service.
33) X The applicant shall install and provide a written test report to the District
certifying that the double check detector assembly is operating properly
prior to the double check detector assembly being turned on for service.
34) X The applicant shall provide an annual written test report to the District
certifying that the backflow devices and fire detector assemblies are
operating properly pursuant to the District’s Backflow Prevention Program
and the State of California Administrative Code, Title 17, Public Health
Rules and Regulations Relating to Cross-Connections.
Page 4 of 5
NAME OF APPLICANT: NATIONAL COMMUNITY RENAISSANCE
LOCATION OF PROJECT: 22733, 22735 & 22737 OAKCREST CIRCLE, YORBA LINDA
35) The applicant shall complete a Sewer Connection Application and Permit
for Sewer Service.
36) X The applicant shall complete an Application to and Agreement for Sewer
Service.
37) X The applicant shall comply with Yorba Linda Water District Rules and
Regulations for Sewer Service.
38) X The applicant shall pay all of the sewer fees as required by the Rules and
Regulations of the District.
39) X The applicant shall have all sewer facilities designed in accordance with the
District's Sewer Master Plan and Standard Specifications. All design plans
shall be prepared under the supervision of and stamped by a Registered
Civil Engineer licensed to practice in the State of California.
40) X The applicant shall provide a completed Surety Bond for the sewer facilities
prior to the District signing the Sewer Improvement Plans. The applicant
shall also provide to the District an estimate of the construction costs of the
proposed sewer facilities.
41) X The applicant’s sewer facilities (on-site) shall be Privately owned and
maintained.
42) X The applicant shall construct a sewer main and appurtenances in
conformance with the approved plans and the District’s Plans and
Specifications.
43) X The applicant shall adjust and raise to grade all sewer manhole covers
within the limits of this project.
44) X The applicant shall install a sewer backflow prevention valve on all sewer
service connections in which the pad elevations of the property being
served is lower than the rim elevation of the upstream manhole. Installation
of the backflow device shall comply with all requirements of the Building
and Plumbing Codes of the appropriate agency having jurisdiction.
45) X The applicant shall submit a video inspection report of their sewer project in
DVD format. The video of the sewer facilities shall be conducted in the
presence of the District inspector, which will include stationing locations of
manholes, cleanouts, wyes, laterals, backflow devices and appurtenances.
(END OF STANDARD TERMS AND CONDITIONS)
Page 5 of 5
NAME OF APPLICANT: NATIONAL COMMUNITY RENAISSANCE
LOCATION OF PROJECT: 22733, 22735 & 22737 OAKCREST CIRCLE, YORBA LINDA
PROJECT SPECIFIC TERMS AND CONDITIONS
46) X The applicant shall install one new residential service, one commercial
service, one irrigation service and one fire protection line in Oakcrest Circle,
per approved plans and District Specifications.
47) X The applicant shall install one new manhole and sewer lateral in Oakcrest
Circle, per approved plans and District Specifications.
I hereby certify that the foregoing Terms and Conditions were approved at the October
27, 2016 Regular Meeting of the Board of Directors of the Yorba Linda Water District.
The approved Terms and Conditions shall become void six (6) months from the approval
date if a formal Application To and Agreement with the Yorba Linda W ater District for
Water and Sewer Service is not executed for the project under consideration.
Marc Marcantonio, General Manager
PROPOSED 8-INCH DCDA
PROPOSED (2) 2-INCH
RESIDENTIAL WATER SERVICES
PROPOSED 8-INCH FIRE
WATER SERVICE
PROPOSED SEWER
MANHOLE
PROPOSED SEWER
LATERAL (PRIVATE)
PROPOSED 1-INCH
IRRIGATION WATER SERVICE
PROPOSED COMMERCIAL
WATER SERVICE (PRE-SCHOOL)
1717 E. MIRALOMA AVENUE
PLACENTIA, CALIFORNIA 92870
(714) 701-3100
PREPARED BY:
YORBA LINDA WATER DISTRICT
SCALE:
DATE:
FILENAME:
EXHIBIT
WATER & SEWER SERVICE
FOR
NATIONAL COMMUNITY RENAISSANCE
OAKCREST HEIGHTS
22733, 22735 & 22737 OAKCREST CIRCLE
YORBA LINDA, CA
SITE PLAN
N.T.S.
10-12-16
J2016-13
ITEM NO. 7.10
AGENDA REPORT
Meeting Date: October 27, 2016 Budgeted:Yes
Total Budget:$1,000,000
To:Board of Directors Cost Estimate:1,000,000
Funding Source:Water Capital
Reserves
From:Marc Marcantonio, General
Manager
Account No:101-2700
Job No:2009-22
Presented By:Steve Conklin, Engineering
Manager
Dept:Engineering
Reviewed by Legal:No
Prepared By:Joe Polimino, Project Engineer CEQA Compliance:Exempt
Subject:Change Order No. 1 for Well No. 21 Wellhead Equipping Project
SUMMARY:
Work is proceeding on construction of the Well No. 21 Well Head Equipping Project. It includes
installation of a new well head, pump and electric motor, electrical controls and equipment, and a
concrete well pad. Pascal and Ludwig Constructors has put in a request for Change Order 1, to
credit YLWD in the amount of $24,957.41 and 0 calendar days as described below.
STAFF RECOMMENDATION:
That the Board of Directors approve Change Order No. 1 in the amount of $24,957.41 (a credit to
the District) and no additional calendar days to Pascal and Ludwig Constructors for construction of
the Well No. 21 Well Head Equipping Project, Job No. 200711.
DISCUSSION:
In accordance with the contract documents, and following discussions with District staff, Pascal and
Ludwig Constructors (P&L) submitted a request for Change Order No. 1, which will result in a credit
to YLWD. P&L has provided documentation to the District explaining these credits and upon review
by staff and the District design engineer, Stantec, the documentation provided supports the change
order request, as detailed below:
P&L proposed removing the epoxy coating lining from the pump column pipe. Stantec, the
design engineer reviewed this proposal and recommended to District staff it was acceptable
per the design requirements. The amount of this credit is $10,022.14.
P&L, after discussions with its subcontractor General Pump, proposed using a WP-1 motor in
lieu of a TEFC motor; and changing the insulation in the motor from a class H to a class
F. Stantec, the design engineer reviewed the benefits of switching to a WP-1 motor and
reviewed the insulation requirements. Stantec has recommended to District staff that both of
these proposals are acceptable per design requirements. The total amount of credit for these
changes is $16,110.00.
P&L has requested an additional out of scope change which required them to weld on an
additional vent tube and transducer tube to the existing well casing, since it was not provided
on the casing as shown on the plan. The total cost of this item is $1,174.73.
The status of the construction contract with Pascal and Ludwig Constructors is as follows:
Change Order No.1 will result in an overall credit of $24,957.41 to YLWD. (2.7% of the original
contract).
If approved, Change Order No. 1 decreases the total contract amount from $910,487.00 to
$885,529.59 and no additional days.
The Engineering Manager and Staff have reviewed the contractor’s request for Change Order No. 1
and recommend approval. A copy of Change Order No. 1 is attached for your reference.
STRATEGIC PLAN:
SR 3-A: Complete Implementation of Five Year Capital Improvement Plan from FY 2011-2015 with
adopted amendments
PRIOR RELEVANT BOARD ACTION(S):
On August 13, 2015, The Board of Directors awarded a Construction Contract for the Well No. 21
Wellhead Equipping Project to Pascal & Ludwig Constructors, Inc. for $910,487.00.
ATTACHMENTS:
Name:Description:Type:
Signed_CO_1_Well_21.pdf Change Order 1 Well 21 Project Backup Material
YORBA LINDA WATER DISTRICT CHANGE ORDER NO. 1
DATE 10/12/16
Page 1 of 1
CONTRACT NAME: Well 21 Equipping CONTRACT AMT.: $910,487.00 DAYS: 365
CONTRACTOR: Pascal&Ludwig Constructors THIS CHANGE: $(24,957.41) DAYS: 0
PROJECT NUMBER: 2009-22 (2.7%)
OWNER: Yorba Linda Water District REVISED CONTRACT AMT: $885,529.59 DAYS: 365
This Change Order covers changes to the subject contract as described herein.The Contractor shall construct,furnish equipment and materials,and
perform all work as necessary or required to complete the Change Order items for a lump sum price agreed upon between the Contractor and Yorba
Linda Water District otherwise referred to as Owner.
DESCRIPTION OF CHANGES +INCREASE CONTRACT
/OR TIME
+EXTENSION
—DECREASE IN /OR-
CONTRACT REDUCTION
AMOUNT($) (DAYS)
PCO 2—Credit from General Pump for epoxy coat deletion from contract $-10,022.14 0
PCO 3—Credit from General Pump to switch from a TEFC to WP-1 motor $-13,110.00 0
PCO 4—Installation of vent and level transducer tubes required for existing casing $+1,174.73 0
PCO 5—Credit from General Pump to change from Class H to Class F insulation $-3,000.00 0
NETCHANGE $(24,957.41) 0
I
REVISED CONTRACT AMOUNT AND TIME $885,529.59 365
)
The amount of the contract will be iRaragsed decreased by the sum of $24,957.41 and the contract time shall be increasec
decreased by 0 calendar days. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the
contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in
work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order. The
Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly
related to the approved time extension, required to complete the Change Order items. This document will become a supplement of
the contract and all provisions will apply hereto. It is understood that the Change Order shall be effective when approved by the
Owner. This Change Order constitutes full, final, and complete compensation to the Contractor for all costs, expenses, overhead,
profit, and any damages of every kind that the Contractor may incur in connection with the above referenced changes in the work,
including any impact on the referenced work of any other work under the contract, any changes in the sequences of any work,any
delay to any work, any disruption of any work, any rescheduling of any work, and any other effect on any of the work under this
contract. By the execution of the Change Order,the Contractor accepts the contract price change and the contract completion date
change, if any, and expressly waive ny claims any additional compensation, damages or time extensions, in connection with
the above-referenced changes.
RECOMMENDED: f /ENGINEER OR DATE:
t'.IINSULTANT /0 1�Q
Joe Polimino
Construction Supervisor,YLWD
ACCEPTED: /CONTRACTOR DATE: 10/12/16
Alan Ludwig
Chairman,P cal&Ludw'
o ctors
APPROVED: DATE: off
f_
/OWNER l L�
Steve onklin
Engineering Manager,YLWD
ITEM NO. 7.11
AGENDA REPORT
Meeting Date: October 27, 2016 Budgeted:Yes
Total Budget:$1.3 M
To:Board of Directors Cost Estimate:$1.3 M
Funding Source:All Water Funds
From:Marc Marcantonio, General
Manager
Account No:101-2700
Job No:2014-23
Presented By:Steve Conklin, Engineering
Manager
Dept:Engineering
Reviewed by Legal:No
Prepared By:Joe Polimino, Project Engineer CEQA Compliance:MND
Subject:Change Order No. 1 for Richfield Road Water Main Project
SUMMARY:
Work is proceeding on construction of the Richfield Road Water Main Project. Submitted for
consideration is Change Order No. 1.
STAFF RECOMMENDATION:
That the Board of Directors approve Change Order No. 1 for 60 additional calendar days to
TBU Construction Inc. for construction of the Richfield Road Water Main Project, Job No. 2014-23.
DISCUSSION:
In accordance with the contract documents, TBU Construction, Inc. has submitted Change Order
No. 1 due to longer fabrication time for materials. A copy of Change Order No. 1 is attached for
your review.
Specifically, TBU has requested a 60 calendar day extension for the project, stating that delays in
steel pipe and valve manufacturing will cause a later start date than originally anticipated. This is a
No-Cost change.
The status of the construction contract with TBU Construction Inc. is as follows:
The current contract is $1,114,746.00 and 240 calendar days.
If approved, Change Order No. 1 adds 60 calendar days to the project.
If approved, the revised construction contract is $1,114,746.00 and 300 calendar days.
District staff reviewed the change order request and recommend approval.
STRATEGIC PLAN:
SR 3-A: Complete Implementation of Five Year Capital Improvement Plan from FY 2011-2015 with
adopted amendments
PRIOR RELEVANT BOARD ACTION(S):
The Board authorized the President and Secretary to execute a construction agreement with TBU
Inc. in the amount of $1,114,746.00 for the Richfield Road Water Main Project, Job No. 2014-23.
ATTACHMENTS:
Name:Description:Type:
signed_CO_1_Richfield_Pipeline.pdf Change Order 1 Richfield Road Pipeline Backup Material
YORBA LINDA WATER DISTRICT CHANGE ORDER NO. 1
DATE 10/13/16
Page 1 of 1
CONTRACT NAME: Richfield Road Pipeline CONTRACT AMT.: $1,114,746 DAYS: 240
CONTRACTOR: TBU Inc. THIS CHANGE: $0.00 DAYS: 60
PROJECT NUMBER: 2014-23
OWNER: Yorba Linda Water District REVISED CONTRACT AMT: $1,114,746 DAYS: 300
This Change Order covers changes to the subject contract as described herein.The Contractor shall construct,furnish equipment and materials,and
perform all work as necessary or required to complete the Change Order items for a lump sum price agreed upon between the Contractor and Yorba
Linda Water District otherwise referred to as Owner.
DESCRIPTION OF CHANGES +INCREASE CONTRACT
TIME
/OR +EXTENSION
—DECREASE IN /OR-
CONTRACT REDUCTION
AMOUNT M (DAYS)
PCO 1 —No cost time extension to account for delay in pipe and valve production $0 ! 60
I
NET CHANGE $0 60
REVISED CONTRACT AMOUNT AND TIME $1,114,746 300
!III The amount of the contract will be increased desfeased by the sum of$0 and the contract time shall be increased de6FeaSed by 6C
calendar days. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price
specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in work,and of
to the extension of time allowed, if any,for completion of the entire work on account of said Change Order. The Contractor agree;
to furnish all labor and materials and perform all other necessary work,inclusive of that directly or indirectly related to the approves
time extension, required to complete the Change Order items. This document will become a supplement of the contract and at
provisions will apply hereto. It is understood that the Change Order shall be effective when approved by the Owner. This Change
Order constitutes full, final, and complete compensation to the Contractor for all costs, expenses, overhead, profit, and any
damages of every kind that the Contractor may incur in connection with the above referenced changes in the work, including any
impact on the referenced work of any other work under the contract, any changes in the sequences of any work,any delay to any
work,any disruption of any work,any rescheduling of any work,and any other effect on any of the work under this contract. By the
execution of the Change Order, the Contractor accepts the contract price change and the contract completion date change, if any.
and expressly waives any claims for an additional . pensation, damages or time extensions, in connection with the above-
referenced changes.
RECOMMENDED: C ��� /ENGINEER OR DATE: 1 /
/QSUt TANT /�
Joe Po�imino
Construction Supervisor,YLWD
ACCEPTED: DATE: l
/CONTRACTOR �� ' I I�✓
Te Burton
;77nklin
BU Inc.
APPROVED: DATE:
/OWNER
Engineering Manager,YLWD
ITEM NO. 7.12
AGENDA REPORT
Meeting Date: October 27, 2016 Budgeted:Yes
Total Budget:$7,830,005
To:Board of Directors Cost Estimate:$65,380
Funding Source:Water Capital
Reserves
From:Marc Marcantonio, General
Manager
Account No:101-2700
Job No:2010-11B
Presented By:Steve Conklin, Engineering
Manager
Dept:Engineering
Reviewed by Legal:No
Prepared By:Anthony Manzano, Senior
Project Manager
CEQA Compliance:MND
Subject:Sole-Source Agreement for Construction-Support Services for the Fairmont
Booster Pump Station Project
SUMMARY:
Staff issued a Request for Proposals for Construction Support and Special Inspection
Services for Construction of the Fairmont Booster Station Project to six firms. Only one proposal
was received. Following evaluation, staff recommends award to Lee & Ro, Inc., for a fee not to
exceed of $65,380.
STAFF RECOMMENDATION:
That the Board of Directors authorize execution of a Professional Services Agreement with Lee &
Ro, Inc., in the amount not to exceed $65,380 for Construction Support and Special Inspection
Services for construction of the Fairmont Booster Station Upgrade Project, Job No. 2010-11B.
DISCUSSION:
Staff issued a RFP for Construction Support and Special Inspection Services for Construction of the
Fairmont Booster Station Project. The District currently does not have staff experienced in the
disciplines of Structural, Architectural and Electrical design and inspection; therefore, Construction
and Inspection Support Services for these disciplines is required to ensure proper and efficient
construction of this pump station. Staff solicited proposals from six construction management firms
experienced in this area. Because of the limited scope (i.e., limited number of hours and fee), only
one firm, Lee & Ro, Inc. (L&R) submitted a proposal for consideration. The District’s review team
reviewed the proposal based on experience of the firm's staff, proposal content, and presentation on
the understanding of the project.
Following the technical evaluation, the fee schedule was opened and reviewed. The fee schedule
lists the unit cost for each of the major services required, as well as the hourly billing rate for all L&R
personnel by classification. The fee schedule for L&R (part of which is attached) was reviewed and
was found to be complete, consistent with related
past proposals, and appropriate for the support services required. Also attached is a portion
of L&R's Proposal, including the Project Understanding and Scope of Work.
It should also be noted that L&R previously provided construction support and special inspection
services for the District for the Yorba Linda Blvd Booster Station Project, and District staff was very
satisfied with their professionalism and capabilities.
Actual services to be provided by L&R will be based on the request of District staff on an as-needed
basis, in accordance with the contract documents, and per the rate schedule provided.
L&R's attached proposal is estimated to be $65,380, and will be budgeted through CIP.
In summary, based on experience, qualifications and hourly rates, staff is recommending award to
L&R, for a fee not to exceed $65,380.
PRIOR RELEVANT BOARD ACTION(S):
A construction contract in the amount of $6,911,100 was awarded to the low bidder, Pacific
Hydrotech Corporation, on August 11, 2016.
ATTACHMENTS:
Name: Description: Type:
L R Proiect Understandina Scope J201011 B 09
L&R Project Understanding&Scope Backup Material
2016.Ddf
Lee Ro Inc. Fee Schedule.Ddf L&R Fee Schedule Backup Material
Yorba Linda Water District page 1
Fairmont Booster pump Station Upgrade Construction Support and Specialty Inspection September 14,2016
SECTION 9
PROJECT UNDERSTANDING AND APPROACH
PROJECT UNDERSTANDING
The Yorba Linda Water District(District) is constructing Fairmont Booster Pump Station
(FBPS)Upgrade Project. The project will increase the District's ability to fully utilize
groundwater and import water and improve reliability and efficiency of the water system.
The project will install a brand new pump station and demolish the existing FBPS. The project
construction requires careful sequencing to maintain uninterrupted FBPS services while the new
FBPS is constructed and commissioned before the existing FBPS can be demolished.
The project includes construction of a reinforced concrete masonry unit(CMU)block structure
to houses eight(8) electrically driven pumps to handle various pressure zones, a disinfection
system; a power/controls facility including emergency power, instrumentation/controls, and
SCADA system. The estimate construction duration is 740 calendar days.
PROJECT APPROACH
LEE & RO will provide the required services for the construction support and Special Inspection
services for all construction elements of the FBPS Upgrade Project,primarily structural,
electrical, and other as necessary.
Experienced Team
LEE & RO has developed a strong team to
deliver the project within the allocated 740
calendar-day schedule and within the contract —
amount for the contract work. Our experienced
team for the electrical and structural elements is
completely familiar with the project scope and
constraints. We have reviewed the contract
documents and bring good understanding to add
value to the District CM team. The LEE &RO
electrical and structural inspection team
supported the District CM on the recently
completed Yorba Linda Boulevard Booster
Pump Station and Pipeline project. The LEE&
RO team guided the project from the inception Yorba Linda Blvd Booster Pump Station
through construction completion and
commissioning and startup. The team also supported the District on post construction O&M
issues for the pump station. Our electrical/controls specialists and structural inspectors are ready
once again to partner with the District CM team on this important project to enhance water
supply mix and reliability to suit the varying District needs.
Been There Done That
The LEE&RO team has used the EADOC system on the Yorba Linda Boulevard Booster Pump
Station construction and we are highly familiar with the documentation flow. We will rapidly
upload and post all correspondence, meeting agendas,meeting minutes, reports, drawings,
LEE & RO, Inc.
LAPROPOSAL116-PROPS116-68 YLWD Fairmont BPS\2.Working FilesTROPOSAL.docx
Yorba Linda Water District Page 2
Fairmont Booster Pump Station Upgrade Construction Support and Specialty Inspection September 14,2016
photos or data related to the work. We will work closely with the District Construction
Supervisor to schedule on-demand Special Inspection Services. Our staff will prepare inspection
reports documenting Special Inspection services for structural, electrical, or other assigned
inspection as necessary and upload electronically to EADOC. We will also coordinate and
perform services as directed by the District's Construction Supervisor.
Multiple Inspector Teams
In order to meet the needs of the project,we will place multiple inspectors for both electrical and
structural needs. LEE& RO recognizes that special inspection may be spread over a long period
within the project duration. To maintain continuity and allow for contingencies such as staff time
off, LEE & RO has assigned multiple inspectors for each task. Having a larger inspector pool,
all located within the close proximity to the job site, the LEE& RO team diminishes potential
risk to the project and enhances value for the District's capital funds.
Communication and Inspection Coordination
LEE & RO will attend meetings and provide the necessary coordination of activities and
communication between project stakeholders as needed. LEE &RO will take a proactive
approach to special inspections by thoroughly comprehending the contract documents and
becoming familiar with each aspect of the project prior to project start. LEE&RO inspectors are
also designers and therefore have a keen insight to foreseeing potential issues that may arise
during construction. We are prepared to diligently and fairly administer the contract in a way
which avoids excessive logistical procedures and reduces potential claims by the Contractor.
Inspection Services
LEE &RO will provide construction
inspection services as-requested by the
F, -
_ — District's Construction Supervisor to
verify the Contractor's work is performed
in compliance with the contract
NV documents, industry standards, and
' applicable codes.
F� LEE &RO will prepare and submit
construction and inspection reports with
detailed written and photographic
documentation and upload the report to
EADOC. Upon discovery of a deviation
from the contract or inaccurate work being
performed, LEE &RO will review the
issue and coordinate between the appropriate parties to reach a solution, all of which will be
documented in the construction/inspection reports. LEE &RO will also monitor Contractor's
maintenance of the Project Record Drawings during the course of construction and verify
accuracy of Contractor's data and red-line mark-ups for Record Drawing purposes.
LEE & RO, Inc.
L:IPROPOSAL116-PROM16-68 YLWD Fairmont BPS12.Working FilesTROPOSAL.docx
Yorba Linda Water District Page 3
Fairmont Booster Pump Station Upgrade Construction Support and Specialty Inspection September 14,2016
Start-un & Testing Coordination i
LEE &RO understands the most critical point of
the project will occur as part of start-up and 1 ■'
commissioning when the new and existing facilities F UJIMMO#
are operating concurrently. During this portion of
the project LEE&RO can provide expert
coordination assistance to the District to carefully,
and accurately, lay out a workable approach that
will minimize impacts to the water system —
operations while reducing the potential for change -
order and delay claims by the Contractor. T
SECTION 2
SCOPE OF WORK
LEE&RO will provide Construction Support and Special Inspection services for the
construction elements of the FBPS Upgrade Project, including but not limited to:
• Pump station building with masonry walls, concrete footings and foundations, interior
sound attenuation panels, roof structure, and equipment pads for electric pumps
• Four electric pumps, 2,300 gpm pumping capacity each, from Zone 675 to Zone 780
• Two electric pumps, 2,100 gpm pumping capacity each, from Zone 920 to Zone 1000
• Two electric pumps, 1,900 gpm pumping capacity each, from Zone 780 to Zone 1000
• Chlorine disinfection treatment and monitoring system
• Electrical system for the electric pumps, general lighting, general power outlets, a 500
kW diesel engine emergency power generator, and automatic transfer switch
• SCADA communication devices to interface with the District's main SCADA system
control. We understand that the District will be responsible for programming the I/O's.
The forecasted project construction period is 740 calendar days after the issuance of the Notice
to Proceed to the selected contractor.
SERVICES TO BE PROVIDED
1. LEE & RO will review and be knowledgeable of the contract documents,project plans,
specifications, and other pertinent project documents prior to start of the project.
2. We will use EADOC, the District's web-based project management system,to upload
and post all correspondence,meeting agendas, meeting minutes, reports, drawings,
photos or data related to the work outlined in this proposal.
3. We will attend meetings as required. We have assumed 10 meetings for this task.
4. LEE &RO will provide Special Inspection Services as requested by the District's
Construction Supervisor, primarily structural and electrical inspection for compliance
with the Contract Documents, and may include assigned inspection for other disciplines.
We have assumed 400 hours for this task.
LEE & RO, Inc.
L:IPROPOSAL116-PROM16-68 YLWD Fairmont BPS12.Working FilesTROPOSAL.doex
Yorba Linda Water District Page 4
Fairmont Booster Pump Station Upgrade Construction Support and Specialty Inspection September 14,2016
5. LEE & RO will prepare inspection reports documenting Special Inspection services for
structural, electrical, or other assigned inspection as necessary and upload electronically
to EADOC.
6. We will coordinate and perform services as directed by the District's Construction
Supervisor in a manner that promotes the cost-effective execution and progress of the
work.
SECTION 3
PERSONNEL
Successful completion of construction support and specialty inspection projects requires a team of
experienced professionals familiar with the complexity and impacts of construction of CIP
projects. LEE &RO has assembled such a team for this project(Exhibit 3-1, Project
Organization). Our team has executed a number of construction management projects in recent
years and this team has demonstrated its expertise, resourcefulness and responsiveness in
addressing project challenges. Engaging this team will prove to be a significant asset to the
Yorba Linda Water District. These team members have specific experience with pump stations.
Our team has completed, on schedule and within budget, many projects of similar scope and value
resulting in quality construction carried out with a low percentage of construction change orders.
Exhibit 3-1: Project Team Organization
I el
Project DirectorlTechnical Advisor
LEE BADERTSCHER, PE
Support/Construction
BILL RUAN, PE Structural
MICHAEL ASSAIDOURIAN, PE Electricall Controls
AJAIRAJU Electrical I Controls
Individual qualifications of our team members are presented below. Team members are
available and eager to work on this project for the Yorba Linda Water District. Resumes for
these individuals are included in the Appendix.
LEE & RO, Inc.
LAPROPOSALU 6-PROPSU 6-68 YLWD FairmontBPS12.Working FilesTROPOSAL.docx
1199 South Fullerton Road, City of Industry, CA 91748
TO:(626)912-3391
r Fax:(626)912-2015
.. FLEE & RO, Inc. www.LEE-RO.com
m FE
€, E El
September 14,2016 SEP 1 4 2016
Bryan Hong, Project Manager
Yorba Linda Water District
1717 E. Miraloma Avenue
Placentia, California 92870
Subject: FEE PROPOSAL.to Provide Construction Support and Special Inspection Services
for Construction of the Fairmont Booster Pump Station Upgrade
Dear Mr. Hong:
LEE &RO, Inc. is pleased to submit this fee proposal for Construction Support and Special
Inspection Services for Construction of the Fairmont Booster Pump Station Upgrade Project.
We have enclosed our fee proposal as Exhibit 1. The spreadsheet provides a breakdown of the
LEE & RO labor hours for the scope of work tasks, in addition to other direct expenses. Our
total fee for these services is $65,380.
The compensation for services will be at our published hourly rates (Exhibit 2)with an upper
limit that will not be exceeded without prior approval from the Yorba Linda Water District.
Thank you for the invitation to submit this proposal. We would be pleased to review our costs
with you. Should you have any questions regarding the enclosed fee estimate,please do not
hesitate to contact me.
Sincerely,
LEE &RO, Inc.
11-1-1 1
Dhiru Patel, PE
President
Enclosures: One(1)Fee Schedule(Exhibit 1),One(1)Billing Rate Schedule(Exhibit 2)
L:IPROPOSAL116-PROPS116-68 YLWD Fairmont BPS12.Working FilesTee Letter.doc
Exhibit 1: Fee Estimate
Yorba Linda Water District
Construction Support and Special Inspection Services for Construction of the Fairmont BPS Upgrade
TASK Labor Category Used for Fee Estimate: Labor Hours Other
No. F6 Construction Manager, F4 Resident Engineer, F2 Inspector F6 I F4 I F2 Total Labor Direct TOTAL
Billing Rates Hours Costs
Task Description $185 $130; $119 (ODCs)
1 Review Contract Documents 8 16 24 $3,880 100 $3,980
2 Attend Meetings as required (10 Meetings assumed) 30 30 $4,500 300 $4,800
3 Special Inspection/ Inspection Reports(Structural/Electrical 16 224 160 400 $55,600 1000 $56,600
(Assume 148 working days)
TOTAL NOT-TO-EXCEED FEE 24 270 160 454 $63,980 $1,400 $65,380
Lee Badertscher(F6); Michael Assadourian (F4); Bill Ruan (174); Ajai Raju (F2)
L:IPROPOSAL116-PROPSII6-68 YLWD FairmontBPS12. Working FilesTee Estimate.xls LEE & RO, Inc.
Exhibit 2
LEE & RO, Inc.
FY 2016-2017 HOURLY BILLING RATE SCHEDULE
(Effective From November 1,2016 to October 31,2017)
BILLING
RATES
PERSONNEL CLASSIFICATION ($/HOUR)
ENGINEERS
Engineer 8 E8 Managing Engineer 229
Engineer 7 E7 Supervising Engineer 206
Engineer 6 E6 Principal Engineer 185
Engineer 5 E5 Senior Engineer 167
Engineer 4 E4 En?,ineer ISO
Engineer 3 E3 Associate Engineer 134
Engineer 2 E2 Assistant Engineer 119
Engineer 1 E1 Junior Engineer 104
CAD / DESIGNERS
Designer 6 T6 Principal Designer ISO
Designer 5 T5 Senior Designer 134
Designer 4 T4 Designer 119
Desi ner 3 T3 Associate Designer 104
Designer 2 T2 Assistant Designer 89
Designer 1 T1 Junior Designer 77
FIELD PROFESSIONALS
Field Professional 6 F6 Construction Manager 185
Field Professional 5 F5 Senior Resident Engineer 167
Field Professional 4 F4 Resident Engineer ISO
Field Professional 3 F3 Senior Inspector 134
Field Professional 2 F2 Inspector 119
Field Professional 1 171 Assistant Inspector 104
ADMINISTRATIVE
Administrative 3 A3 I Senior Word Processor 104
Administrative 2 A2 Word Processor 89
Administrative 1 Al Administrative Assistant 77
LAPROPOSAL116-PROPS116-68 YLWD Fairmont BPS12.Working Files\Exhibit 2 Billing Rates.xls LEE & RO, Inc.
ITEM NO. 7.13
AGENDA REPORT
Meeting Date: October 27, 2016
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Gina Knight, HR/Risk Manager Dept:Human
Resources/Risk
Management
Reviewed by Legal:No
Prepared By:Amelia Cloonan, Human
Resources Analyst
Subject:Claim for Damages Filed by Tracey Pratt
SUMMARY:
A claim was filed with the District on October 6, 2016 for estimated costs to clean claimant's
property.
STAFF RECOMMENDATION:
That the Board of Directors reject and deny the claim filed by Tracey Pratt.
DISCUSSION:
The District's contractor has been performing work on a project to replace a water line. In the claim
submitted to the District on October 6, 2016, claimant states that Yorba Linda Water District dug up
Short Street, Lakeshore Drive and Lakehaven Way to improve water lines. The work, still in
process but nearing completion, has taken place adjacent to claimant's property on Sandra Drive.
Claimant states heavy vehicles were parked in front of their home during the project.
Claimant also states their fencing, landscape lighting, walkways, home and two automobiles are
covered in soot, a thick layer of dirt. Claimant has presented an estimate in the amount of $2,360 to
pressure wash her roof, the exterior of the house, gutters, windows and surrounding hardscape and
to clean areas of dirt and residue resulting from power washing of the roof. Included in the
estimates presented is cleaning of windows, screens and frames. Additionally, detailing of two
automobiles is included in the claim at an additional cost of $500. The total claim is $3130.
It is the District's contention that these costs are the responsibility of the contractor. Claimant should
file a claim against the contractor, not the District.
The claim form and supporting documents are on file and available for review in the office of the
General Manager.
ITEM NO. 8.1
AGENDA REPORT
Meeting Date: October 27, 2016
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Delia Lugo, Finance Manager
Subject:Debt Management Policy
STAFF RECOMMENDATION:
That the Board of Directors adopt Resolution No. 16-19 Setting Forth a Debt Management Policy.
DISCUSSION:
Staff has been working with Mr. Robert Porr of Fieldman, Rolapp & Assoicates, the District's
Financial Advisor, to develop a Debt Management Policy for the District.
The Government Financial Officers Association (GFOA) has set forth that as a "Best Business
Practice", state and local governments should adopt a comprehensive debt management policy. In
its publication entitled "Best Practice Debt Management Policy", GFOA states that debt
management policies are written guidelines, allowances, and restrictions that guide issuance
practices of state and local governments, including the issuance process, management of a debt
portfolio, and adherence to various laws and regulations. In addition, a debt management policy
should improve the quality of decisions, articulate policy goals, provide guidelines for the structure
of debt issuance, and demonstrate a commitment to long-term capital and financial planning.
The Debt Management Policy as presented, is structured to meet the recommendations as set for
by GFOA and to comply with future "accountability" reporting requirements to the California Debt
and Investment Advisory Commission.
ATTACHMENTS:
Name:Description:Type:
Resolution_No._16-19_-
_Debt_Management_Policy.docx Resolution Resolution
3010-003_-_Debt_Management_Policy.docx Exhibit Exhibit
Resolution No. 16-19 Setting Forth a Debt Management Policy 1
RESOLUTION NO. 16-19
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
SETTING FORTH A DEBT MANAGEMENT POLICY FOR FY 2016-17
WHEREAS, State and local agencies should adopt comprehensive written debt
management policies pursuant to the recommendation of the Government
Finance Officers Association; and
WHEREAS, debt management policies are written guidelines, allowances, and
restrictions that guide the debt issuance practices of state or local
governments, including the issuance process, management of a debt
portfolio, and adherence to various laws and regulations; and
WHEREAS, a debt management policy should improve the quality of decisions,
articulate policy goals, provide guidelines for the structure of debt issuance,
and demonstrate a commitment to long-term capital and financial planning;
and
WHEREAS, the Board of Directors of the Yorba Linda Water District desire to adopt the
Debt Management Policy set forth herein.
NOW, THEREFORE, BE IT RESOLVED by Board of Directors of the Yorba Linda Water
District as follows:
Section 1. Exhibit 1 (Debt Management Policy – Yorba Linda Water District) is hereby
adopted and deemed implemented concurrent with passage and adoption
of this Resolution.
PASSED AND ADOPTED this 26th day of October 2016 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Ric Collett, President
Yorba Linda Water District
Resolution No. 16-19 Setting Forth a Debt Management Policy 2
ATTEST:
Marc Marcantonio, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
Kidman Law LLP
3010-003 Debt Management Policy Page 1 of 11
Policies and Procedures
Policy No.: 3010-003
Adoption Method: Resolution No. 16-19
Effective Date: October 27, 2016
Revision Dates: N/A
Prepared By: Delia Lugo, Finance Manager
Applicability: District Wide
POLICY: DEBT MANAGEMENT
1.0 INTRODUCTION
1.1 Purpose and Overview
In its publication entitled Best Practice Debt Management Policy, the
Government Finance Officers Association (GFOA) states that Debt
management policies are written guidelines, allowances, and restrictions
that guide debt issuance practices of Board adopted issuance processes,
management of a debt portfolio, and adherence to state and federal laws
and regulations. A debt management policy should improve the quality of
decisions, and articulate policy goals, provide guidelines for the structure of
debt issuance, and demonstrate a commitment to long-term capital financial
planning. The Yorba Linda Water District Debt Management Policy as set
forth herein provides a set of comprehensive guidelines for the issuance
and management of District’s debt portfolio. Adherence to the policy is
essential to ensure the District maintains a diversified debt portfolio that
supports the District’s financing needs and minimizes the District’s cost of
funds.
1.2 Roles and Responsibilities
Finance Manager - The primary responsibility for debt management rests
with the Finance Manager. The Finance Manager shall:
• Provide for the issuance of District debt at the lowest possible cost and
risk;
• Determine the available debt capacity of the District;
• Provide for the issuance of District debt at appropriate intervals and in
reasonable amounts as required to fund approved and budgeted capital
expenditures;
• Recommend to the District’s Board of Directors (the “Board”) the
method and manner of sale of District debt;
• Monitor opportunities to refund debt and recommend such refunding as
appropriate to reduce costs or to achieve other policy objectives;
• Comply with all Internal Revenue Service (IRS), Municipal Securities
Rulemaking Board (MSRB), Securities and Exchange Commission
(SEC), and California Debt Investment Advisory Commission (“CDIAC”)
rules and regulations governing the issuance of debt;
3010-003 Debt Management Policy Page 2 of 11
• Maintain a current database with all outstanding debt;
• Provide for the timely payment of principal and interest on all debt;
• Comply with all terms and conditions, including continuing disclosure,
required by the legal documents governing the debt issued;
• Submit to the Board all recommendations to issue debt in accordance
with this Policy;
• Distribute to appropriate repositories information regarding the District’s
financial condition and affairs at such times and in the form required by
law, regulation and general practice;
• Provide for the frequent distribution of pertinent information to the rating
agencies;
• Apply and promote prudent fiscal practices; and
• To ensure that proceeds of any debt issued in accordance with its
governing documents and this Policy no disbursements shall be make
without the approval of the Finance Manager and General Manager.
The draw request shall be provided to the District by the project
engineer with the consent of the District’s inspector. Approval shall only
be provided when the Finance Manager is in receipt of an appropriate
certification from the construction project manager with supporting
invoices from suppliers and / or contractors evidencing appropriate
expenses in connection with the project.
In the case of an issue of bonds the proceeds of which will be used by a
governmental entity other than the District, the District may rely upon a
certification by such other governmental entity that it has adopted the
policies described in SB 1029.
2.0 LEGAL GOVERNING PRINCIPLES
In the issuance and management of debt, the District shall comply with all legal
constraints and conditions imposed by federal, state and local law. The following
section highlights the key governing documents and certain debt limitations.
2.1 Governing Law
County Water District Law – The District was established in 1959 as a
county water district under the County Water District Law, Division 12 of the
Water Code of the State of California, as the successor to a private water
company that was incorporated in or about 1909, for purposes of supplying
water for domestic, irrigation, sanitation, industrial, commercial, recreation
and fire suppression use.
Federal Tax Law – The District shall issue and manage debt in accordance
with the limitations and constraints imposed by federal tax law, to maximize
its ability to sell tax-exempt debt. Such constraints include, but are not
limited to, private activity tests, review of eligible projects, spend-down
tests, and arbitrage rebate limitations.
Securities Law – The District shall comply with the requirements of federal
and state securities laws in offering District debt and the District shall
comply with securities law requirements in providing ongoing disclosure to
the securities markets.
2.2 Governing Legal Documents
Indenture – The District’s debt issuance is further governed in part by the
Indenture of Trust, adopted September 8, 2016 of which constitutes the
“Indenture.” The Indenture establishes the basic security structure of debt
3010-003 Debt Management Policy Page 3 of 11
issued by the District that is secured by Net Water Revenues. Key terms
and conditions include, but are not limited to, the definition of pledged
revenues, the rate covenant and the additional bonds test. A copy of the
Indenture can be found in Appendix B. The District shall comply with all
limitations imposed under the Indenture, so long as such Indenture is in full
force and effect.
2.3 Permitted Debt by Type
The District may legally issue both short-term and long-term debt, using the
debt instruments described below. The Director of Administrative Services,
in consultation with the District’s General Counsel, Bond Counsel, and
Financial Advisor shall determine the most appropriate instrument for
funding purposes.
General Obligation Bonds – The District is empowered, under California
law, to levy taxes on all taxable property within its boundaries for the
purpose of paying its voter-approved general obligation bonds and, subject
to certain limitations.
Certificates of Participation – Certificates of Participation (COP) provide
debt financing through a lease, installment sale agreement or contract of
indebtedness and typically do not require voter approval. Board action is
sufficient to legally authorize a COP issue. The District shall pledge net
revenues to the repayment of its COPs, under the terms and conditions
specified in the Indenture.
JPA Revenue Bonds – As an alternative to COPs, the District may obtain
financing through the issuance of Debt by a joint exercise of powers agency
with such Debt payable from amounts paid by the District under a lease,
installment sale agreement, or contract of indebtedness.
Commercial Paper – The District may issue short-term revenue
certificates, including commercial paper and extendable commercial paper.
Board action is sufficient to legally authorize a commercial paper issue.
The District’s commercial paper is secured by net revenues. Voter
approval is not required to issue commercial paper.
Lines of credit - The District may enter into financing arrangements
providing for a source of funds that can be readily accessed by the District
for capital or operational needs. Board action is sufficient to legally
authorize the establishment of a line of credit. Voter approval is not
required to establish or access a lien of credit.
Variable Rate Debt – The District is authorized to issue variable rate debt
including, but not limited to, public market indexed notes, indexed notes or
loans placed directly with financial institutions and other alternative variable
rate and market access products as well as traditional variable rate demand
obligations backed by bank liquidity facilities. Prior to the issuance of
variable rate debt, the savings and other possible advantages compared to
a fixed rate borrowing will be evaluated and a comparative analysis
presented to the Board of Directors as part of the approval process.
Refunding Revenue Bonds – The District is authorized to issue refunding
revenue bonds to refund outstanding District indebtedness pursuant to the
State of California local agency refunding revenue bond law (Articles 10
and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government
Code of the State of California).
3010-003 Debt Management Policy Page 4 of 11
Loans – The District is authorized to enter into loans, installment payment
obligations, or other similar funding structures secured by a prudent source,
or sources of repayment.
Assessment Bonds – The District is authorized to issue assessment
bonds pursuant to the Improvement Bond Act of 1915, subject to
requirements imposed by Proposition 218. Such bonds are typically repaid
from assessments collected within an assessment district formed pursuant
to the Municipal Improvement Act of 1913. Assessments are levies of
charges on real property to pay for projects or services that specifically
benefit that parcel of property.
2.4 Limitations on Debt Issuance
Short-Term Debt – The District’s short-term debt shall not exceed 30
percent of its total debt at the time of issuance. The calculation of short-
term debt shall include any variable rate obligations, the authorized amount
of commercial paper, any notes/bonds with a maturity equal to or less than
five years.
Variable Rate Debt – The Finance Manager will consult with the District’s
Financial Advisor to determine appropriate parameters for the issuance of
variable rate debt and may rely on rating agency standard’s and other
industry standards for establishing prudent financial goals and establishing
the amount of variable rate debt to be issued.
Subordinate Lien Long-Term Debt - The District’s subordinate lien debt,
for which net revenues are pledged, shall be limited to that amount for
which current and projected revenues generate overall debt service
coverage of at least 100 percent.
Senior Lien Long-Term Debt – The District’s senior lien long-term debt,
for which net revenues are pledged, shall be limited to that amount for
which current and projected revenues generate a senior lien debt service
coverage of at least 125 percent. The calculation of debt service shall not
include General Obligation Bonds, Assessment Bonds, or Special Tax
Bonds to which revenue sources other than pledged revenues, as defined
in the Indenture, are pledged. It should be noted that the District will issue
debt to attempt to meet the senior lien debt service coverage target of 225
percent in keeping with its prudent financial management practices and to
maintain credit ratings aligned with rating agency methodologies.
2.5 Purpose for Borrowing
The District shall issue debt solely for the purpose of financing the cost of
design, engineering acquisition, and/or construction of water and
wastewater system improvements in furtherance of the District’s Capital
Improvement Program (CIP). Additionally, the District may, subject to
Federal tax code limitations, include operational expenses in any debt
issuance.
2.6 Ethical Standards Governing Conduct
Members of the District, the Board and its consultants, service providers,
and underwriters shall adhere to standards of conduct as stipulated by the
California Political Reform Act, as applicable. All debt financing participants
shall maintain the highest standards of professional conduct at all times, in
accordance with:
3010-003 Debt Management Policy Page 5 of 11
• MSRB Rules, including Rule G-37 and G-42 shall be followed at all
times;
• Debt financing participants will assist the District staff in achieving its
goals and objectives as defined in this Debt Management Policy; and
• All debt financing participants shall make cooperation with the District
staff their highest priority.
2.7 Use of Derivatives
The use of derivative products can, among other things, increase District
financial flexibility and provide opportunities for interest rate savings or
enhanced investment yields. Careful monitoring of such products is
required to preserve District credit strength and budget flexibility. Swaps
will not be used to speculate on perceived movements in interest rates.
Before the District enters into any derivative product associated with debt,
the Board shall adopt an interest rate swap policy.
3.0 INTEGRATION OF CAPITAL PLANNING AND DEBT ACTIVITIES
3.1 Evaluating Capital Improvement Program Spending
The District shall develop and maintain a capital finance model to evaluate
the impact of capital program spending, operations and maintenance costs,
and debt service on its financial condition. To that end, the Finance
Director shall oversee the ongoing maintenance of quantitative modeling
that includes, but is not limited to, the following:
• Five years of historic and projected cash flows;
• Five years of historic and projected capital expenditures;
• Five years of historic and projected operating costs;
• Five years of historic and projected fund balances for any funds
established by the District’s then-adopted Reserve Fund
• Five years of historic and projected debt service coverage;
• The most efficient mix of funding sources (long-term debt; short-term
debt, and cash);
• Projected revenue requirements; and
• Projected rates and charges.
4.0 PROCUREMENT AND EVALUATION OF PROFESSIONAL SERVICES
4.1 Appointment of Service Providers – The Finance Manager may solicit
from time to time bids, quotes or proposals, including sole source proposals
for the following services on an as needed basis:
• Financial Advisor – Service provider that ensures the District complies
with all financial management procedures and policies and ensures
successful closing for bond transactions.
• Bond Counsel – Service provider that drafts appropriate documentation
to ensure successful and timely closing and create valid and legally
binding security for bond issues, and provide appropriate advice and
taking appropriate actions to ensure legal validity of bond issues under
state and federal laws as applicable.
5.0 TRANSACTION-SPECIFIC POLICIES
5.1 Method of Sale – The Finance Manager shall determine the most
appropriate form of sale of its debt. In making a recommendation to the
Board the Finance Manger may consult with the District’s Financial Advisor
3010-003 Debt Management Policy Page 6 of 11
and Bond Counsel and may take into account, among other things, the type
and tenor of the proposed debt; the District’s credit ratings; the amount of
funding necessary; the timing of the needed funds; local and national
economic conditions; and general bond market conditions.
5.2 Competitive Bid Method - When necessary to minimize the costs and
risks of any District borrowing, the Director of Administrative Services may
submit to the Board a request to sell bonds on a competitive basis. Such
bids may take the form of hand- delivered or electronically transmitted
offers to purchase the bonds. Any competitive sale of District debt will
require approval of the Board. District debt issued on a competitive bid
basis will be sold to the bidder proposing the lowest true interest cost to the
District provided the bid conforms to the official notice of sale.
5.3 Negotiated Bid Method – A negotiated bond issue will provide for the sale
of debt by negotiating the terms and conditions of the sale, including price,
interest rates, credit facilities, underwriter or remarketing fees, and
commissions. Examples of such sales include:
• Variable rate demand obligations;
• An issue of debt so large that the number of potential bidders would be
too limited to provide the District with truly competitive bids;
• An issue requiring the ability to react quickly to sudden changes in
interest rates (e.g. refunding bonds);
• An issue requiring intensive marketing efforts to establish investor
acceptance;
• An issue of debt with specialized distribution requirements; and
• An issue of debt sold during a period of extreme market disruption or
volatility.
If bonds are sold on a negotiated basis, the negotiations of terms and
conditions shall include, but not be limited to, prices, interest rates,
underwriting or remarketing fees, and underwriting spreads and timing of
sale. The District, with the assistance of its Financial Advisor, shall
evaluate the terms offered by the underwriting team. Guidelines with
respect to price, interest rates, fees, and underwriting spreads shall be
based on prevailing terms and conditions in the marketplace for
comparable issuers, credit ratings, tenor and par amount.
If more than one underwriter is included in the negotiated sale of debt, the
District shall establish appropriate levels of liability, participation and priority
of orders. Such levels shall be based upon District policy with regards to
the underwriting responsibility among the team members, the desired
allocation of total fees, and the desired distribution of bonds. Guidelines for
establishing liability, participation, and priority of orders shall be based on
prevailing terms and conditions in the marketplace for comparable issuers.
The District shall, with the assistance of its Financial Advisor, oversee the
bond allocation process. The bond allocation process shall be managed by
the lead underwriter, with the following requirements:
• The bonds are allocated fairly among members of the underwriting
team, consistent with the previously negotiated terms and conditions;
• The allocation process complies with all MSRB regulations governing
order priorities and allocations;
• The lead underwriter shall submit to the Director of Administrative
Services a complete and timely account of all orders, allocations, and
underwriting activities with the investor names identified as appropriate.
3010-003 Debt Management Policy Page 7 of 11
The Finance Manager Services shall require a post-sale analysis and
reporting for each negotiated bond sale. The Financial Advisor or the lead
underwriter may perform such analysis. A post-sale analysis will include,
but not be limited to:
• Summary of the pricing, including copies of the actual pricing wires;
• Results of comparable bond sales in the market at the time of the
District’s pricing;
• Detailed information on orders and allocation of bonds, by underwriting
firm;
• Detailed information on final designations earned by each underwriter;
and
• Summary of total compensation received by each underwriter.
STRUCTURAL ELEMENTS
5.4 Pledge of Revenues – The District’s pledge of revenues shall be
determined for each debt issue depending upon the debt instrument:
• General Obligation Bonds of the District shall be repaid from voter-
approved property taxes on property within the jurisdiction of the
District.
• Certificates of Participation of the District shall be repaid from net
revenues, as defined in the Indenture.
• Revenue Bonds of the District shall be repaid from net revenues, as
defined in the Indenture.
• Loans of the District may be repaid from net revenues of the water and
or wastewater systems, or other financially prudent sources of
repayment.
• Assessment Bonds of the District shall be repaid levies or charges
collected within an assessment district formed by the District pursuant
to the Municipal Improvement Act of 1913.
• Special Tax Bonds of the District shall be payable from net special
taxes collected in applicable taxing jurisdiction as a result of the levy of
special taxes.
5.5 Maturity – The District may issue tax-exempt debt with an average life
equal to, but no greater than 125% of, the average life of the assets being
financed. The final maturity of the debt should be no longer than 40 years
absent compelling circumstances or facts. Factors to be considered when
determining the final maturity of debt include: the average useful life of the
assets being financed, relative level of interest rates, intergenerational
equity and the year-to-year differential in interest rates.
5.6 Maturity Structure – The District’s long-term debt may include serial and
term bonds. Other maturity structures may also be considered if they are
consistent with prudent financial management practices.
5.7 Coupon Structure – Debt may include par, discount and premium.
Discount and premium bonds must be demonstrated to be advantageous
relative to par bond structures taking into consideration market conditions
and opportunities. For variable rate debt, the variable rate may be based
on one of a number of commonly used interest rate indices and the index
will be determined at the time of pricing.
5.8 Debt Service Structure – Debt service may be structured primarily on an
approximate level (combined annual principal and interest) basis. Certain
3010-003 Debt Management Policy Page 8 of 11
individual bond issues, such as refunding bonds, may have debt service
that is not level. However, on an aggregate basis, debt service should be
structured primarily on a level basis.
5.9 Redemption Features – In order to preserve flexibility and refinancing
opportunities, District debt will generally be issued with call provisions. The
District may consider calls that are shorter than traditional and/or non-call
debt when warranted by market conditions and opportunities. For each
transaction, the District will evaluate the efficiency of call provision
alternatives.
5.10 Credit Enhancement – The District shall competitively procure credit
enhancement for an original sale of bonds if the Finance Director, in
consultation with the Financial Advisor and the senior underwriter,
determines that it is cost effective to do so. The Finance Director may in
consultation with the Financial Advisor and the senior underwriter
determine that due to certain circumstances a sole source procurement
process may be more advantageous than a competitive process.
5.11 Senior/Subordinate Lien – The District may utilize both a senior and a
subordinate lien structure. The choice of lien will be determined based on
such factors as overall cost of debt, impact on debt service, impact on
rates, and marketing considerations.
5.12 Debt Service Reserve Funds – The District shall provide for debt service
reserve funds to secure District debt when necessary.
6.0 COMMUNICATION AND DISCLOSURE
6.1 Rating Agencies
The District shall maintain its strong ratings through prudent fiscal
management and consistent communications with the rating analysts. The
Finance Director shall manage relationships with the rating analysts
assigned to the District’s credit, using both informal and formal methods to
disseminate information. Communication with the rating agencies may
include one or more of the following:
• Full disclosure on an annual basis of the financial condition of the
District;
• A formal presentation, at least annually or as becomes necessary to the
rating agencies, covering economic, financial, operational, and other
issues that impact the District’s credit;
• Timely disclosure of major financial events that impact the District’s
credit;
• Timely dissemination of the Comprehensive Annual Financial Report,
following its acceptance by the District’s Board;
• Full and timely distribution of any documents pertaining to the sale of
bonds; and
• Periodic tours of the water system operations, as appropriate.
6.2 Bond Insurers
The Finance Director shall manage relationships with the bond insurers, to
the extent any Debt is so insured, by providing appropriate information.
Communication with other bond insurers shall be undertaken when the
Director of Administrative Services, with the assistance of the District’s
3010-003 Debt Management Policy Page 9 of 11
Financial Advisor, determines that credit enhancement is cost effective for a
proposed bond issue.
Disclosure Reports – The District shall comply with its disclosure
undertakings and make disclosure reports readily available to market
participants though the Electronic Municipal Market Access website.
Web Site – The District may use its website as a tool for providing timely
information to investors.
7.0 REFUNDING POLICIES
The District shall strive to refinance debt to maximize savings and minimize the
cost of funds as market opportunities arise. A net present value analysis will be
prepared that identifies the economic effects of any refunding to be proposed to
the Board. The District shall target a 3% net present value savings for current
and 5% for advance refunding transactions. Upon the advice of the Director of
Administrative Services, with the assistance of the Financial Advisor and
Counsel, the District will consider undertaking refundings for other than economic
purposes, such as to restructure debt, change the type of debt instruments being
used, or to retire a bond issue and indenture in order to remove undesirable
covenants.
7.1 Savings Thresholds – Minimum savings thresholds have been established
to help guide the economic analysis of refunding bonds. The minimum
savings guidelines are applicable on a maturity-by-maturity basis and are
expressed as a percentage of refunded bond par calculated by dividing the
expected net present value savings generated by the proposed refunding
by the par amount of refunded bonds. At the recommendation of the
Director of Administrative Services, with the assistance of the Financial
Advisor, the District may complete a refunding for net present values
savings equal to the target specified above on an aggregate bond issue
basis rather than a maturity by maturity basis. Generally, the District shall
only refund bonds to generate debt service savings of the specified
minimum savings set forth in the previous paragraph can be achieved.
7.2 Coupon on Refunded Bond – The Director of Administrative Services
may take into consideration whether the coupon on the refunded bond is
significantly higher or lower than the most common outstanding bond
coupons of approximately five percent.
7.3 General Interest Rate Environment – The Director of Administrative
Services may take into consideration whether the available refunding bond
interest rates are generally high or generally low relative to long-term
averages of historical rates.
7.4 General Interest Rate Outlook – The Director of Administrative Services
may take into consideration the general outlook for future interest rates, as
derived from economic forecasts, market forecasts, implied forward rates,
or other sources.
7.5 Debt Management Considerations – The Director of Administrative
Services may take into consideration debt management issues such as
cost and staff efficiencies associated with combining multiple refunding
bond issues or combining refunding and new money bond issues.
3010-003 Debt Management Policy Page 10 of 11
7.6 Call Date – The Director of Administrative Services may take into
consideration the amount of time between the pricing/closing date of the
refunding Debt and the call date of the Debt to be refunded.
7.7 Final Maturity Date – The Director of Administrative Services may take
into consideration the amount of time remaining until the final maturity of
the Debt to be refunded.
8.0 REINVESTMENT OF PROCEEDS
8.1 General – The District shall comply with all applicable Federal, State, and
contractual restrictions regarding the use and investment of bond proceeds.
This includes compliance with restrictions on the types of investment
securities allowed, restrictions on the allowable yield of some invested
funds, as well as restrictions on the time period during over which some
bond proceeds may be invested. To the extent that a bond issue is credit
enhanced, the District shall adhere to the investment guidelines of the
credit enhancement provider.
8.2 Requirements of Indenture – The District will comply with all terms and
conditions of the appropriate legal documents related to the Debt. Such
limitations shall include, but not be limited to Investments in the Indenture.
9.0 CREATION AND MAINTENANCE OF FUNDS
The District maintains a number of different funds integral to the long-range
financial planning process. Each of these funds is held for a specific purpose
and can generally be categorized as either an operating, capital or debt reserve
fund. The District will comply with all requirements and limitations created under
its Reserve Policy.
10.0 COMPLIANCE
10.1 Arbitrage Liability Management
The District shall minimize the cost of arbitrage rebate and yield restrictions
while strictly complying with tax law. Because of the complexity of arbitrage
rebate regulations and the severity of non-compliance penalties, the District
shall solicit the advice of bond counsel and other qualified experts about
arbitrage rebate calculations. The District shall contract with a qualified
third-party for preparation of the arbitrage rebate calculation.
The District shall maintain an internal system for tracking expenditure of
bond proceeds and investment earnings. The expenditure of bond
proceeds shall be tracked in the financial accounting system by issue.
Investment may be pooled for financial accounting purposes and for
investment purposes. When investment of bond proceeds are co-mingled
with other investments, the District shall adhere to IRS rules on accounting
allocations.
10.2 Post-Issuance Tax Compliance
The District has adopted Written Procedures to Ensure Compliance with
Requirements for Tax-Exempt Bonds. The District shall comply with such
procedures to maintain the tax-exempt status of District debt obligations or
to maintain eligibility for direct pay subsidy payments, as applicable.
3010-003 Debt Management Policy Page 11 of 11
10.3 Continuing Disclosure
The District shall comply with the requirements of each Continuing
Disclosure Certificate entered into at the time of a sale of bonds. Annual
information provided by the District shall mirror the information in any
District offering statement at the time of a primary offering. Annual financial
information will be sent by the District or its designated consultant, within
the time required under the Continuing Disclosure Certificate to the EMMA
System This shall include:
• Comprehensive Annual Financial Report of the District; and
• Updated tables from the Official Statement, as detailed in the
Continuing Disclosure Certificate.
In addition to annual disclosure, the District shall provide ongoing
information about certain enumerated events, as defined by regulation, to
the EMMA System.
The District may engage a firm to assist it in ensuring timely completion and
filing of annual reports and in identifying, and making timely filings with
respect to, the occurrence of reportable enumerated events.
10.4 Legal Covenants
The District shall comply with all covenants and conditions contained in
governing law and any legal documents entered into at the time of a bond
offering.
11.0 DEBT DATABASE MANAGEMENT
The District shall maintain complete information on its outstanding debt portfolio,
in a spreadsheet or database program format. The information in the database
shall include, but not be limited to, the following:
• Issue Name
• Initial Issue Par Amount
• Dated Date of the Issue
• Principal Maturity Amounts
• Coupon Rate by Maturity
• Amount Outstanding
• Call Provisions
• Purpose of the Issue
• Credit Enhancer, if any
• Competitive or Negotiated Sale
• Names of Underwriting Team Members
The District shall use the debt database for the following purposes:
• Generate reports
• Gross annual debt service
• Net annual debt service
• Refunding Analyses
• Output to Fund Accounting System
ITEM NO. 12.1
AGENDA REPORT
Meeting Date: October 27, 2016
Subject:Meetings from October 14, 2016 - November 30, 2016
ATTACHMENTS:
Name:Description:Type:
BOD_-_Activities_Calendar.pdf Backup Material Backup Material
Event Date Attendance by:
November 2016
YL Town Center Groundbreaking Ceremony Tue, Nov 1 Hawkins/Kiley
Yorba Linda City Council Tue, Nov 1 Beverage
MWDOC Wed, Nov 2 Melton
OCSD Operations Committee Wed, Nov 2 Kiley/Beverage
OCWD Wed, Nov 2 Collett
WACO Fri, Nov 4 Hawkins/Kiley
LAFCO Wed, Nov 9 Beverage (As Needed)
Yorba Linda Planning Commission Wed, Nov 9 Melton
Board of Directors Regular Meeting Thu, Nov 10
Yorba Linda City Council Tue, Nov 15 Collett
MWDOC Wed, Nov 16 Melton
OCWD Wed, Nov 16 Kiley
Board of Directors Regular Meeting Mon, Nov 21
Interagency Committee Meeting with MWDOC and OCWD Tue, Nov 22 Collett/Melton
OCSD Wed, Nov 23 Kiley/Beverage
Yorba Linda Planning Commission Wed, Nov 23 Hawkins
District Offices Closed Thu, Nov 24
Citizens Advisory Committee Meeting Mon, Nov 28 Melton
4:00PM
6:00PM
6:30PM
7:00AM
8:30AM
6:30PM
8:30AM
6:30PM
8:30AM
5:30PM
8:30AM
6:30PM
8:30AM
5:00PM
5:30PM
7:30AM
8:00AM
Board of Directors Activity Calendar
Time
4:00PM
10/20/2016 7:34:28 AM
ITEM NO. 13.1
AGENDA REPORT
Meeting Date: October 27, 2016
Subject:YL Town Center Groundbreaking Ceremony - November 1, 2016
STAFF RECOMMENDATION:
That the Board of Directors approve Director attendance at this event if desired.
ATTACHMENTS:
Name:Description:Type:
YL_Town_Center.pdf Backup Material Backup Material
PLEASE JOIN US... ZELMAN DEVELOPMENT CO.
FOR THE YORBA LINDA TOWN CENTER GROUND BREAKING CEREMONY
Tuesday, November 1, 2016 4:00 p.m.
18453 Yorba Linda Blvd.
Yorba Linda, CA 92886
(corner of Yorba Linda Blvd.
and Imperial Hwy.)
Reception immediately
following ceremony.
For more information,
please contact the
Yorba Linda Chamber of
Commerce at
714.993.9537 or
info@yorbalindachamber.com
YLTC
YORBA LINDA TOWN CENTER