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HomeMy WebLinkAbout2017-01-24 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, January 24, 2017, 6:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL J. Wayne Miller, President Al Nederhood, Vice President Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director 4. ADDITIONS/DELETIONS TO THE AGENDA 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports 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 Regular Meeting held November 21, 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 $1,759,251.47. 7.3. Professional Services Agreement with Liebert Cassidy Whitmore for Legal Services Recommendation: That the Board of Directors approve the proposed rates for legal services provided by Liebert Cassidy Whitmore. 7.4. Request to File Notice of Completion for 2015 Waterline Replacement Project Recommendation: That the Board of Directors authorize staff to file the Notice of Completion for construction of the 2015 Waterline Replacement Project, Job No. J2014-12. 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. Support of California Eco Restore and California Water Fix Recommendation: That the Board of Directors approve Resolution No. 17-01 in Support of the California Eco Restore and California Water Fix Preferred Alternative (No. 4A). 9. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District’s interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 9.1. Status of Recruitment Process for Ad Hoc Citizens Advisory Committee 9.2. Board of Directors' Compensation and Benefits 9.3. Budget to Actual Reports for the Month Ending December 31, 2016 9.4. Cash and Investment Report for Period Ending December 31, 2016 9.5. Scheduling Future Budget and HR Workshop Meetings 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports 10.2. General Manager's Report 10.3. General Counsel's Report 10.4. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) · Next meeting scheduled March 23, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) · Next meeting scheduled March 13, 2017 at 4:00 p.m. at YL City Hall. 11.3. Interagency Committee with City of Placentia and Golden State Water Company (Miller/Nederhood) · Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS 12.1. YL City Council - January 17, 2017 (Nederhood) 12.2. MWDOC Board - January 18, 2017 (Nederhood) 12.3. OCWD Board - January 18, 2017 (Jones) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from January 25, 2017 - March 31, 2017 14. ADJOURNMENT 14.1. A Board of Directors Workshop Meeting has been scheduled Tuesday, January 31, 2017 at 4:00 p.m. The next Regular Board of Directors Meeting will be held Tuesday, February 14, 2017 at 5:30 p.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: January 24, 2017 Subject:Minutes of the Board of Directors Regular Meeting held November 21, 2016 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2016-11-21_-_Minutes_-_BOD.doc Minutes Minutes Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 1 2016-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Monday, November 21, 2016, 8:30 a.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The November 21, 2016 Regular Meeting of the Yorba Linda Water District Board of Directors was called to order by President Collett at 8:31 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 Vice President Beverage 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 Phil Hawkins, Director Gina Knight, HR/Risk and Safety Manager Bob Kiley, Director Delia Lugo, Finance Manager Gary Melton, Director Damon Micalizzi, Public Information Manager Art Vega, Information Technology Manager Annie Alexander, Executive Secretary Cindy Botts, Water Consv Sup/Mgmt Analyst Cat Erbacher, Water Conservation Rep Javier Martinez, Water Production Supt Laurie McAllaster, Records Mgmt Admin Kelly McCann, Senior Accountant Ken Mendum, Water Maintenance Supt Malissa Muttaraid, Public Affairs Representative Rachel Padilla, Customer Service Supervisor ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Gene Hernandez, Councilmember, City of Yorba Linda 4. ADDITIONS/DELETIONS TO THE AGENDA None. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 2 5. INTRODUCTIONS AND PRESENTATIONS 5.1. MWDSC/MWDOC Director’s Report None. 6. PUBLIC COMMENTS Mr. John Farley, resident, commented on when the new Directors would take office, his personal water conservation efforts, the water rate increase, the price increase of the EpiPen, and the District’s reserves. Mr. Jon Hansen, resident, commented on the impact of the water rate increase on low-income customers, the District’s annual financial statements, and a meeting he’d participated in with another resident and District representatives. He also commented on the recent election and the proposed amendment to the General Manager’s employment contract. Ms. Linda Patterson, resident, commented on her personal salary, the proposed amendment to the General Manager’s employment agreement, and the recent election. Ms. Debbie Cozort, resident, suggested that consideration of the proposed amendment to the General Manager’s employment agreement be deferred to the new Board. She also commented on the water rate increase and the District’s financial statements. Dr. Jeff Decker, resident, commented on the timing of the proposed amendment to the General Manager’s employment agreement, previous meetings he’d attended with representatives of the District and City Council, the water rate increase, and the recent election. Ms. Celia Pilkington, resident, commented on her mothers work in the community and the impact of the water rate increase on low-income residents. Ms. Eileen Oldenburg, resident, wished everyone a happy Thanksgiving and thanked the Board for their years of service. She also commented on an article in the Yorba Linda Star regarding the General Manger’s salary, her personal income as a retiree, and the impact of the water rate increase on residents with fixed incomes. Mr. Tony Osburn, resident, thanked the Board for their service and suggested that the proposed amendments to the General Manager’s employment agreement be reconsidered. Ms. Judy DesJardin, resident, suggested that previously collected administrative penalties be refunded. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 3 Mr. Greg Schultz, resident, read a letter on his wife’s behalf regarding the District’s response to the drought and associated state regulations and the community’s response to the water rate increase. 7. CONSENT CALENDAR Director Beverage made a motion, seconded by Director Kiley, 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 $1,314,849.30. 7.2. Budget to Actual Statements for the Month Ending October 31, 2016 Recommendation: That the Board of Directors receive and file the Budget to Actual Statements for the Month Ending October 31, 2016. 7.3. Cash and Investment Report for Month Ending October 31, 2016 Recommendation: That the Board of Directors receive and file the Investment Reports for the Month Ending October 31, 2016. 7.4. Unaudited Financial Statements for 1st Quarter of FY 2016/17 Recommendation: That the Board of Directors receive and file the Unaudited Financial Statements and the Debt Service Ratio Calculation for the Period Ending September 30, 2016. 7.5. Award of Paving Repair Work Recommendation: That the Board of Directors authorize the General Manager to approve a Purchase Order to Sanders Paving in the amount of $27,800.15 for Permanent Asphalt Repair at various locations throughout the District. 7.6. Change Order No. 3 for 2015 Waterline Replacement Project Recommendation: That the Board of Directors approve Change Order No. 3 in the amount of $17,312.34 and no additional calendar days to GCI Construction, Inc. for construction of the 2015 Waterline Replacement Project, Job No. J2014-12. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 4 8. ACTION CALENDAR 8.1. Second Amendment to Employment Agreement for Position of General Manager Mrs. Knight explained that the Board had previously authorized the Board President to negotiate the General Manager’s (GM) salary and benefits which would then be presented at a future meeting for consideration. As a result of the Board’s evaluation of the GM’s work performance, and in the interest of maintaining the employment relationship, it was proposed that the GM’s annual salary be increased to $216,900 effective September 2, 2016. It was also proposed that the following benefits be amended with the same effective date: term of employment extended to September 1, 2020; 3% deferred compensation match; vacation accrual increase to 6.154 hours per pay period; and a 6-month severance. She noted that the proposed salary was still below the median for comparable water agencies. President Collett explained that the Board was responsible for reviewing the GM’s performance on a periodic basis. The most recent review process began on September 2, 2016, however completion was delayed due to the declining health and unfortunate loss of two of President Collett’s family members. President Collett noted that it would be difficult for the new Board to evaluate the GM’s past performance and that the proposed salary was still the fourth lowest amongst comparative agencies. Mr. Brooke Jones, Director-Elect, commented on the proposed extension of the term of the GM's agreement and suggested that consideration of this matter be deferred within a few months of the current contract’s expiration. He also suggested that the current Board educate the public and new Board members on the GM’s merits and accomplishments. President Collett clarified that the GM’s salary was last adjusted in March 2015. Mr. Kent Ebinger, resident, commented on the role of the District’s ratepayers and suggested that the GM’s contract be extended for one year rather than three. Mrs. Susan Decker, resident, extended her sympathy to President Collett for his loss and commented on the proposed terms of the GM’s employment agreement. She also suggested that the District implement additional cost saving measures. Mr. Dick Paquette, resident, commented on his personal work experience and the proposed terms of the GM’s contract. He suggested that this matter be deferred for a few weeks until after the new Board members took office. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 5 An unknown resident commented on the proposed increase in the GM’s salary, the water rate increase, recent election, and the District’s relations with the community. Mr. Rob Simpson, resident, commented on the proposed terms of the GM’s employment agreement and the salaries utilized in the comparative survey. Mr. Al Nederhood, Director-Elect, offered his condolences to President Collett and suggested that due to the unusual circumstances, consideration of this matter be deferred. He also commented on MWDOC’s benefit package for its GM and other management employees, and language in YLWD’s Board’s Policies and Procedures Manual related to the establishment of goals, objectives and measurement criteria for the GM’s performance. Dr. Wayne Miller, Director-Elect, extended his sympathy to President Collett and commented on the process, timing and proposed terms of the GM’s employment agreement. He also suggested that consideration of this matter be deferred to the new Board. Mrs. Cristy Parker, resident, commented on the importance of transparency, the staff report related to this matter, costs associated with public records requests, and the proposed terms of the GM’s contract. Director Hawkins suggested that the Board consider voting on the proposed extension of the GM’s employment agreement and salary increase separately. Director Kiley commented on the amount of time it took to recruit the current GM and Mr. Marcantonio’s efforts related to the State’s emergency water conservation regulations. He also commented on the tenor of the recent election and threats made against District staff. Director Melton agreed with Director Hawkins’ suggestion. Vice President Beverage asked for clarification regarding Director Hawkins’ suggestion. Director Hawkins explained he was proposing that the Board consider adjusting the GM’s salary separately from the other terms in the proposed employment agreement. Directors Beverage and Collett then commented on the performance evaluation process for the GM. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 6 Director Hawkins made a motion, seconded by Director Beverage, to consider adjusting the General Manager’s salary based on his past performance separately from the other terms in the proposed employment agreement. President Collett repeated the motion for the audience. Motion carried 5-0. Director Hawkins commented on the salary survey and Mr. Marcantonio’s past performance. President Collett commented on the length of time it took to fill the GM’s position, the difficulties the Board experienced during the recruitment process due to the lower salary range, and Mr. Marcantonio’s past performance. Director Hawkins made a motion, seconded by Director Beverage, to increase the General Manager’s annual salary to $216,900 effective September 2, 2016. Motion carried 4-1 with Director Melton voting No. Director Hawkins suggested that consideration of the other terms in the proposed employment agreement be deferred to the new Board. Vice President Beverage suggested that the length of the GM’s employment agreement be extended for one year as it was set to expire in September 2017 and that consideration of all other terms be deferred to the new Board. Director Hawkins stated that he thought the new Board would be able to begin working on consideration of the remaining terms in the proposed employment agreement right away and that extending the length of the contract might not be necessary at this time. Directors Melton and Collett agreed with Director Hawkins’ statement. Director Hawkins made a motion, seconded by Director Beverage, to defer consideration of the remaining terms in the proposed employment agreement to the new Board. President Collet repeated the motion and clarified that the remaining terms to be considered were: extending the length of the employment agreement; a 3% deferred compensation match; an increase in vacation accrual; and a 6-month severance. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 7 Director Hawkins stated that essentially the terms of the existing contract would remain the same with the exception of the approved salary increase. Motion carried 4-1 with Director Collett voting No. President Collett declared a recess at 9:31 a.m. The meeting was reconvened at 9:41 a.m. 8.2. Revised Budgeted Positions for the Remainder of FY 2016/17 Mrs. Knight explained that the Human Resources Department had received requests from multiple managers to reclassify specific positions so they were more reflective of their present duties. Following an internal assessment, staff is proposing to reclassify the present job titles for the Public Information Manager and Executive Secretary be changed to Communications Manager and Executive Assistant respectively. Additionally, staff is proposing that the present job title for the vacant position of SCADA Administrator be revised to Chief Water Systems Operator with a new salary range of 29 instead of 30 (representing a 5% decrease). She noted that there was no financial impact associated with reclassifying the first two positions and responded to questions from the Board. Director Beverage made a motion, seconded by Director Hawkins, to adopt Resolution No. 16-20 Approving the Revised Budgeted Positions for the Remainder of Fiscal Year 2016/17 and Rescinding Resolution No. 16- 04. Motion carried 5-0 on a Roll Call vote. 8.3. Employee Travel Expense Reimbursement Policy Mrs. Lugo explained that following review of the Board of Directors’ Policies and Procedures Manual in July 2016, the Board determined to adopt some minor revisions to the travel expense reimbursement section in order to enhance clarification and cover certain topics such as the process for reimbursement of miscellaneous gratuities. As no one employee class is to receive a greater benefit than the other, staff has updated the Employee Travel Expense Reimbursement Policy to mirror the Board of Directors. In addition to being reviewed by legal counsel, the revised police has been reviewed and approved by the Yorba Linda Water District Employee Association Board as part of the meet and confer process. Mrs. Lugo provided a brief overview of the proposed revisions related to meal reimbursement, lodging, and transportation. She also responded to questions from the Board regarding meal reimbursement amounts. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 8 Director Beverage made a motion, seconded by Director Hawkins, to adopt Resolution No. 16-21 Setting Forth an Employee Travel Expense Reimbursement Policy and Rescinding Resolution No. 12-04. Motion carried 5-0 on a Roll Call vote. 9. DISCUSSION ITEMS 9.1. Status of Advanced Refunding of 2008 Certificates of Participation Mrs. Lugo explained that in January 2016 the Board was presented with an opportunity to refinance the District’s 2008 Certificates of Participation (COPs). Due to events occurring over the past year, the Board was advised on two separate occasions to defer this action. As there has been a recent change in the members of the Board, the District’s Bond Counsel and Financial Advisors are recommending that this process be postponed once again. Arrangements are being made to provide a presentation at the regular meeting scheduled December 22, 2016 so the new Board has an opportunity to consider reaffirming moving forward with the refinancing process. The projected annual cash flow savings in January 2016 was $322K. This amount has since been reduced to $244K due to current market conditions. Total cash flow savings was originally projected to be $7.4M for the remaining 21 years of the bond which is now estimated to be $5.1M. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. President's Report President Collett thanked District staff for their work during his tenure, particularly during the recent drought. 10.2. Directors' Reports Director Melton commented on the current Board’s efforts over the years. Director Hawkins stated that it had been a pleasure to serve with the other members of the Board. Director Kiley thanked District staff and the General Manager for their efforts and commented on the difficulties experienced during the last year. Vice President Beverage commented on his lengthy service in the community both at the District and the City of Yorba Linda. He also thanked staff for their dedication and commended Mr. Marcantonio for his work during the recent drought. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 9 10.3. General Manager's Report Mr. Marcantonio thanked the Board for their comments and service to the community. He then asked each of the managers (or their designee) to report on activities with then their respective departments. Mr. Conklin thanked the Board for their service and commented on the various challenges the District experienced over the past several years. He then reported on the status of various construction projects and responded to questions from the Board on the Fairmont Booster Pump Station Project. Mrs. Lugo thanked the Board for their leadership and commented on the challenges with shifting the District’s business model. She also welcomed the new Board members and wished everyone a happy Thanksgiving. Mrs. Lugo then reported on staff’s planned attendance at seminars regarding new federal/state tax law and GASB rulings. Staff is also working with IT to potentially upgrade the District’s financial system and preparing an RFP for audit services. Mr. Mendum thanked the Board for their service and commended Mr. Marcantonio for his leadership. He then provided an overview of staff’s preventative maintenance and leak detection/repair activities during the calendar year and responded to related questions from the Board. Mr. Vega thanked for the Board for their service to the community. He wished everyone a happy Thanksgiving and stated that he was looking forward to working with the new Board. Mr. Vega then reported on staff’s mitigation efforts related to an issue with the District’s main phone line and the number of blocked threats during the previous and current month. Mr. Micalizzi stated that it was an honor to work with the Board and thanked them for their leadership. He commented on various challenges facing the District and Mr. Marcantonio’s efforts to address them. He also reported on recent activities of the State Water Resources Control Board, (SWRCB) and the status of Proposition 53. Mrs. Knight thanked the Board for their service and leadership and wished everyone a happy Thanksgiving. Mr. Marcantonio reported that he’d been invited to participate in a focus group organized by the Public Policy Institute of California (PPIC) to interpret data collected in a survey of water agencies throughout the state. The survey was conducted at the request of the Governor and focused on urban drought response. It was apparent that all water agencies, regardless of their assigned conservation mandate, had been impacted by the drought emergency regulations. Those agencies with higher conservation percentages experienced severe financial consequences Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 10 and backlash from the public. Agencies in southern California were required to implement water rationing practices even though their communities had made significant investments in water infrastructure and storage. The Governor’s drought emergency declaration is scheduled to expire in January unless it is extended and SWRCB is in the process of developing permanent conservation regulations. Mr. Marcantonio then wished everyone a happy Thanksgiving. 10.4. General Counsel’s Report Mr. Gagen noted that there was a need for Closed Session. 10.5. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Collett / Melton) Meeting scheduled November 22, 2016 at 4:00 p.m. was cancelled. Next meeting is scheduled January 24, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Collett / Beverage) Meeting scheduled November 22, 2016 at 9:00 a.m. was cancelled. Next meeting is yet to be scheduled. 11.3. Interagency Committee with City of Placentia and Golden State Water Company (Collett / Kiley) Next meeting is yet to be scheduled. 11.4. Citizens Advisory Committee (Melton) Meetings scheduled November 28, 2016 and December 26, 2016 were cancelled. Next meeting is scheduled January 23, 2017 at 8:30 a.m. Minutes of the YLWD Board of Directors Regular Meeting Held November 21, 2016 at 8:30 a.m. 11 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1. YL City Council – November 15, 2016 (Beverage) 12.2. MWDOC Board – November 16, 2016 (Melton) 12.3. OCWD Board – November 16, 2016 (Kiley) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from November 22, 2016 – December 31, 2016 The Board reviewed the activity calendar and made no changes. 14. CLOSED SESSION The meeting was adjourned to Closed Session at 10:23 a.m. All Directors in attendance were present. Also present were Mrs. Knight and Messrs. Gagen, Marcantonio and Micalizzi. 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: Julie Lonsdale vs. Yorba Linda Water District (OC Superior Court – Case No. 00808246) 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: Irvine Ranch Water District vs. Orange County Water District (OC Superior Court – Case No. 00858584) The Board reconvened in Open Session at 10:48 a.m. No action was taken during Closed Session that was required to be reported under the Brown Act. 15. ADJOURNMENT 15.1. The meeting was adjourned at 10:49 a.m. The next Regular Board of Directors Meeting will be held Thursday, December 8, 2016 at 8:30 a.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.2 AGENDA REPORT Meeting Date: January 24, 2017 Budgeted:Yes To:Board of Directors Cost Estimate:$1,759,251.47 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 $1,759,251.47. DISCUSSION: The major items on this disbursement list are as follows: A wire of $328.68 to So. California Edison for December 2016 electricity charges at multiple locations; a wire of $467,282.52 to MWDOC for November 2016 water purchases; a wire of $55,808.76 to So. California Gas Co. for December 2016 gas charges at multiple locations; a check of $120,090.47 to ACWA/JPIA for February 2017 medical & dental premium; a check of $49,164.72 to GCI Construction Inc. for waterline replacement final progress payment #06; a check of $387,953.40 to Pacific Hydrotech Corporation for Fairmont pump station upgrade progress payment #01; and a check of $215,992.95 to TBU Inc. for Richfield Rd water main plant progress payment #02. The balance of $204,400.46 is routine invoices. The Accounts Payable check register total is $1,501,021.96; Payroll No. 01 total is $258,229.51; and the disbursements of this agenda report are $1,759,251.47. 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: 17-CS_0124.pdf CAP SHEET Backup Material 17_CC_0124.pdf CREDIT CARD SUMMARY Backup Material CkReg012417.pdf CHECK REGISTER Backup Material January 24, 2017 CHECK NUMBERS & WIRES: Computer Checks 68985—69062 $ 977,602.00 ____________ $ 977,602.00 WIRES: W 011117 So. California Edison $ 328.68 W011317 MWDOC $ 467,282.52 W 011717 So. California Gas Co. $ 55,808.76 ____________ $ 523,419.96 TOTAL OF CHECKS & WIRES $1,501,021.96 PAYROLL NO. 01: Direct Deposits $ 163,051.08 Third Party Checks 6584—6591 $ 49,309.10 Payroll Taxes $ 45,869.33 $ 258,229.51 TOTAL OF PAYROLL $258,229.51 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $1,759,251.47 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF JANUARY 24, 2017 ==================================================================. Date Vendor Name Amount Description 12/21/2016 Grainger 357.70 Light bulbs for YLWD buildings 12/26/2016 GM Parts Center 38.54 Vehicle maintenance - Unit 208 12/26/2016 Alliance Safety Council 135.00 COSS Renewal - Arnado, B 12/26/2016 Orchard Supply Hardware 18.35 Garden Hose 12/26/2016 Verizon Wireless 5,910.74 Verizon Wireless for October and November 2016 12/27/2016 Orchard Supply Hardware 10.21 Hardware supplies 12/27/2016 Orvac Electronics 113.18 Electrical supplies 12/27/2016 CSDA 400.00 Registration for SDLA Conference - Dir. Nederhood 12/27/2016 Placentia Disposal 519.00 (2) front loads - Richfield Rd 12/28/2016 Loma Vista Nursery 69.12 SOD for landscape repair 12/28/2016 Loma Vista Nursery 129.60 Landscape material for repairs 12/28/2016 United Water 192.41 Parts for pipeline repair 12/28/2016 CSDA 600.00 Registration for SDLA Conference - Dir. Jones 12/28/2016 Technology Surplus Depot 3,884.36 MXU 520R-TC-TC meters 12/28/2016 Technology Surplus Depot 621.58 MXU 520R-TC-TC meters 12/29/2016 Schorr Metals 28.09 Material - 10' aluminum tube 12/29/2016 Home Depot 339.18 Tools & equipment 1/3/2017 Home Depot 52.70 Tools for valve truck 1/3/2017 Pollard Water 676.91 (3) containers of dechlorination tablets 1/4/2017 Home Depot 116.17 Building repair parts 1/4/2017 OC ARMA 70.00 Training - Knight, G & Millen, M 1/5/2017 Snap-On Tools 820.30 Tools & equipment 1/5/2017 CSDA 400.00 Registration for SDLA Conference - President Miller 1/9/2017 Orchard Supply Hardware 15.07 Warehouse supplies 1/9/2017 City of Anaheim 4,170.00 J2014-23 - Deposit for inspection & administrative fees (Richfield Rd Water main) 1/10/2017 Orchard Supply Hardware 24.83 Leak crew - landscape supplies 19,713.04 Cal Card Credit Card U S Bank 12/21/16 - 01/10/17 Check No.Date Vendor Name Amount Description 69012 01/24/2017 A & Y Asphalt Contractors Inc.22,777.00 ASPHALT PAVING - MULTIPLE LOCATIONS 69005 01/24/2017 ACWA/JPIA 120,090.47 MEDICAL & DENTAL PREMIUM - FEBRUARY 2017 69006 01/24/2017 ACWA/JPIA 35,707.00 4TH QTR 2016 WORKERS COMPENSATION DUES 68990 01/24/2017 ADELIA OLIVER 65.24 CUSTOMER REFUND 69007 01/24/2017 Aljon Graphics, Inc 554.04 OFFICE EXPENSE - YLWD ENVELOPES 69008 01/24/2017 Aqua-Metric Sales Co.4,290.36 WAREHOUSE STOCK - OMNI METER 69009 01/24/2017 Aquatic Inspections 11,250.00 RESERVOIR INSPECTIONS - MULTIPLE LOCATIONS 69010 01/24/2017 Aramark 759.34 UNIFORM SERVICES 69018 01/24/2017 ARC 20.00 PW DOC/BID MANAGEMENT 69011 01/24/2017 AWWA - CA-NV Section 770.00 BACKFLOW COURSE - MALDONADO 69013 01/24/2017 CalCard US Bank 19,713.04 CREDIT CARD TRANSACTIONS FOR DECEMBER 2016 & JANUARY 2017 69014 01/24/2017 California United Bank 20,418.60 2010-11B - FAIRMONT PUMP STATION UPGRADE - RETENTION #01 69015 01/24/2017 CDW Government, Inc 525.61 HP LASERJET M477FNW 69016 01/24/2017 City Of Placentia 4,899.33 SEWER FEES - DECEMBER 2016 69017 01/24/2017 Cogsdale Services Corporation 5,000.00 MICROSOFT GP & CSM UPGRADE - 2016 69045 01/24/2017 County of Orange 45.57 LANDFILL FEES 69019 01/24/2017 CPR1 LLC 661.20 AED TOTAL SOLUTIONS - MAINTENANCE 69000 01/24/2017 CREATING HOMES 372.31 CUSTOMER REFUND 69020 01/24/2017 Culligan of Santa Ana 2,083.31 EQUIPMENT PE SOFTENER - 01/17 69021 01/24/2017 Dell Marketing L.P.1,696.00 SERVER PRO SUPPORT & ON-SITE SERVICE 69022 01/24/2017 DLT Solutions, LLC.538.51 SOFTWARE LICENSE RENEWAL 69023 01/24/2017 Eisel Enterprises, Inc.79.92 J16-03 - METER BOX, LID & COVERS 69024 01/24/2017 Enthalpy Analytical, Inc.2,510.60 WATER QUALITY - DECEMBER 2016 69026 01/24/2017 EyeMed 2,694.93 EYE MED - JANUARY 2016 69025 01/24/2017 Fairway Ford Sales, Inc.135.33 VEHICLE MAINTENANCE - UNIT #175 & 186 69027 01/24/2017 Flex Advantage 108.00 FLEX ADVANTAGE - DECEMBER 2016 69028 01/24/2017 GCI Construction Inc.49,164.72 J14-12 - '15 WATER PIPELINE REPLACEMENT - PROGRESS PAYMENT 06 - FINAL 68997 01/24/2017 GMC ENGINEERING, INC.920.00 CUSTOMER REFUND 68993 01/24/2017 GREENVIEW VISTA LLC 417.23 CUSTOMER REFUND 69029 01/24/2017 Harrington Industrial 335.86 CL2 REPLACEMENT PARTS 68998 01/24/2017 HUAJUN YAO 383.73 CUSTOMER REFUND 69030 01/24/2017 Infosend Inc.4,369.43 POSTAGE BILLING/CUSTOMER BILLING - MONTHLY FEE 69031 01/24/2017 Jackson's Auto Supply - Napa 296.38 VEHICLE MAINTENANCE - #175 68999 01/24/2017 JARIEL GARCIA 37.49 CUSTOMER REFUND 69032 01/24/2017 John Decriscio 90.00 CERTIFICATE REIMBURSEMENT - WATER TREATMENT OPERATOR GRADE 3 68994 01/24/2017 KERRY NELIGAN 58.99 CUSTOMER REFUND 69033 01/24/2017 Kidman Law 15,600.00 LEGAL SERVICES - DECEMBER 16 69034 01/24/2017 Liebert Cassidy Whitmore 4,140.50 EMPLOYEMENT RELATIONS CONSORTIUM MEMBERSHIP 69035 01/24/2017 LPR-Laser Printer Repair Co 429.99 HP T7100 - PRINTER MAINTENANCE 69036 01/24/2017 Managed Health Network 168.75 EAP - JANUARY 2017 68987 01/24/2017 MARIA OJEDA 81.13 CUSTOMER REFUND 69037 01/24/2017 Marina Landscape, Inc 4,114.68 MONTHLY LANDSCAPE MAINTENANCE - DECEMBER 16 69038 01/24/2017 Mc Fadden-Dale Hardware 217.60 HARDWARE SUPPLIES 68988 01/24/2017 MICHAEL ZINN 9.08 CUSTOMER REFUND 68986 01/24/2017 MONICA ESPEJO 272.25 CUSTOMER REFUND W011317 01/13/2017 Municipal Water District 467,282.52 IMPORT WATER DELIVERIES - NOVEMBER 16 69039 01/24/2017 Muzak LLC 85.63 CUSTOMER MESSAGE/PHONE SERVICE - JANUARY 2017 68989 01/24/2017 MYRA HERRERA 64.36 CUSTOMER REFUND 68995 01/24/2017 NATALIE COOKE 40.34 CUSTOMER REFUND 69040 01/24/2017 NatPay Online Business Solutions 23.85 DOCULIVERY - DECEMBER 2016 69041 01/24/2017 Nickey Kard Lock Inc 4,044.44 FUEL - 12/16/17 - 12/31/17 69042 01/24/2017 Nu-Line Technologies, LLC 11,222.00 SEWER LINE REPAIRS - 63 LINEAR FEET 68996 01/24/2017 OC FURNITURE 361.08 CUSTOMER REFUND 69043 01/24/2017 Occu-Med, Ltd.135.50 EMPLOYMENT PHYSICAL - ERBACHER 69044 01/24/2017 Office Solutions 614.12 OFFICE SUPPLIES 69047 01/24/2017 P.T.I. Sand & Gravel, Inc.1,684.56 ROAD MATERIAL - COLD MIX & +30 FILL SAND 69046 01/24/2017 Pacific Hydrotech Corporation 387,953.40 J2010-11B - FAIRMONT BPS UPGRADE - PROGRESS PAYMENT #01 69051 01/24/2017 Rachel Padilla/Petty Cash 183.87 PETTY CASH - O010917 69001 01/24/2017 SALLY CHOI 65.73 CUSTOMER REFUND Yorba Linda Water District Check Register For Checks Dated: 01/13/2016 thru 01/24/2017 69048 01/24/2017 Sanders Paving, Inc.3,656.63 CONCRETE REPAIR - 23231 LA PALMA W011117 01/11/2017 So. California Edison 328.68 ELECTRICITY CHARGES - MULTIPLE LOCATIONS - DECEMBER 2016 69049 01/24/2017 Solarwinds Inc.696.00 ANNUAL RENEWAL - PM250 W011717 01/17/2017 Southern Calif Gas Co.55,808.76 GAS CHARGES - MULTIPLE LOCATIONS - DECEMBER 2016 69050 01/24/2017 Spinitar 2,582.79 ASSISTED LISTENING SYSTEM 69053 01/24/2017 St.Jude Hospital Yorba Linda 35.00 EXAM - DMV PHYSICAL 69052 01/24/2017 Step Saver Inc 610.89 COARSE SALT 69054 01/24/2017 Sunrise Medical Group 70.00 POST EMPLOYMENT PHYSICAL - DIAZ, J 69055 01/24/2017 Sunstate Equipment Co 69.12 HARDWARE SUPPLIES 69056 01/24/2017 TBU Inc 215,992.95 J14-23 - RICHFIELD WATER MAIN PLANT - PROGRESS PAYMENT #02 69057 01/24/2017 Time Warner Cable 175.13 BASIC CABLE - MIRALOMA 69058 01/24/2017 Titan Water Technology Inc 295.00 SERVICE HOT/COLD LOOP SYSTEM - ADMIN BUILDING 68985 01/24/2017 TOLL BROTHERS INC 75.00 CUSTOMER REFUND 68992 01/24/2017 TOMMY LE 53.49 CUSTOMER REFUND 69059 01/24/2017 Underground Service Alert 199.50 DIGALERT - DECEMBER 2016 69060 01/24/2017 United Industries 125.31 CLEANING PAINTING SUPPLIES 69061 01/24/2017 United Water Works, Inc.6,171.21 WAREHOUSE STOCK 68991 01/24/2017 VAN W SPINNEY 18.07 CUSTOMER REFUND 69062 01/24/2017 Wayne Miller 792.00 REIMBURSEMENT - TABLET/PC 69004 01/24/2017 WEI VIA ROMA LLC 400.31 CUSTOMER REFUND 69002 01/24/2017 WINSTON R COVINGTON 194.37 CUSTOMER REFUND 69003 01/24/2017 YONGHWA LIM 36.83 CUSTOMER REFUND 1,501,021.96 ITEM NO. 7.3 AGENDA REPORT Meeting Date: January 24, 2017 Budgeted:Yes Total Budget:$90,000 To:Board of Directors Funding Source:Operating Funds From:Marc Marcantonio, General Manager Account No:1-7010-0780-00 Presented By:Gina Knight, HR/Risk and Safety Manager Dept:Human Resources/Risk Management Reviewed by Legal:N/A Prepared By:Amelia Cloonan, Human Resources Analyst Subject:Professional Services Agreement with Liebert Cassidy Whitmore for Legal Services SUMMARY: The District uses the law firm of Liebert Cassidy Whitmore (LCW) for representation in employment related matters. The law firm consists of 87 attorneys in four separate offices. Effective January 1, 2017, LCW's professional services rates increased in order to continue to provide the District with the very best in public sector counsel. STAFF RECOMMENDATION: That the Board of Directors approve the proposed rates for legal services provided by Liebert Cassidy Whitmore. DISCUSSION: The District received correspondence from Liebert Cassidy Whitmore informing staff that the law firm will raise their rates effective January 1, 2017. LCW has not increased its rates since July 1, 2014. The Liebert Cassidy Whitmore firm specializes in the representation of management in public sector and employment law issues. Since 2007, the District has contracted with Liebert Cassidy Whitmore for labor negotiations and employment law representation. The rate increase is due to the rising costs of doing business and engaging exceptional counsel. A schedule of the proposed rates is attached for review along with a copy of the current rates. ATTACHMENTS: Name:Description:Type: LCW_Fee_Schedule.pdf Backup Material Backup Material LIEBERT CASSIDY WHITMORE FEE SCHED ULE (EFFECTIVE JANUARY],2017) HOURLY RATES Partners $350.00 Senior Counsel $305.00 Associates $200.00 - $285.00 Labor Relations/Human Resources Consultant $195.00 Paraprofessionals& Litigation Support $75.00 - $160.00 LIEBERT CASSIDY WHITMORE FEE SCHEDULE (EFFECTIVE JULY 1,2014) HOURLY RATES Partners $325.00 Of Counsel $285.00 Associates $190.00 - $265.00 Paraprofessionals & Litigation Support $75.00 - $150.00 ITEM NO. 7.4 AGENDA REPORT Meeting Date: January 24, 2017 Budgeted:Yes Total Budget:$1.2M To:Board of Directors Cost Estimate:$760,726 Funding Source:All Water Funds From:Marc Marcantonio, General Manager Account No:101-2700 Job No:J2014-12 Presented By:Steve Conklin, Engineering Manager Dept:Engineering Reviewed by Legal:No Prepared By:Bryan Hong, Water Quality Engineer CEQA Compliance:Exempt Subject:Request to File Notice of Completion for 2015 Waterline Replacement Project SUMMARY: Construction is complete on the 2015 Waterline Replacement Project. Submitted for consideration is a request for authorization to file the Notice of Completion for the project. STAFF RECOMMENDATION: That the Board of Directors authorize staff to file the Notice of Completion for construction of the 2015 Waterline Replacement Project, Job No. J2014-12. DISCUSSION: Construction is complete on the 2015 Waterline Replacement Project. In accordance with the District's Asset Management Plan, the project replaced approximately 3,400 feet of deteriorating waterlines in Short Street, Lakehaven Way, Lakeshore Lane, Lemon Drive, Main Street, Olinda Street, Meadowview Drive, and Woodhaven Drive. The status of the construction contract with GCI Construction, Inc. is as follows: The original construction contract was approved by the Board of Directors for $737,700.00 and 210 calendar days. Change Order No. 1 was approved by the General Manager, in accordance with the District's Purchasing Policy, which added $3,708.75 to the contract (0.5% of the original contract). Change Order No. 2 was approved by the General Manager, in accordance with the District's Purchasing Policy, which added $2,004.69 to the contract (0.3% of the original contract). Change Order No. 3 was approved by the Board of Directors, which added $17,312.34 to the contract (2.3% of the original contract). The revised construction contract amount is $760,725.78 and 210 calendar days. All work has been completed in accordance with the contract documents and to the satisfaction of District staff; accordingly, staff requests authorization to file and proceed with recordation of the Notice of Completion. PRIOR RELEVANT BOARD ACTION(S): On February 11, 2016, the Board of Directors awarded a construction contract in the amount of $737,700.00 to GCI Construction, Inc. for the 2015 Waterline Replacement Project. On November 21, 2016, the Board of Directors approved Change Order No. 3 for $17,312.34 for the 2015 Waterline Replacement Project. ITEM NO. 8.1 AGENDA REPORT Meeting Date: January 24, 2017 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Marc Marcantonio, General Manager Dept:Communications Prepared By:Malissa Muttaraid, Public Affairs Representative Subject:Support of California Eco Restore and California Water Fix SUMMARY: On December 7, 2016, the Municipal Water District of Orange County (MWDOC) Board of Directors unanimously approved a resolution of support for the proposed California WaterFix project. Staff recommends the YLWD Board of Directors adopt a support position for the California WaterFix and California Eco Restore to ensure water supply reliability for the future. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 17-01 in Support of the California Eco Restore and California Water Fix Preferred Alternative (No. 4A). DISCUSSION: On December 7, 2016, Municipal Water District of Orange County (MWDOC) Board unanimously approved a resolution of support for the proposed California WaterFix project. The California WaterFix would stabilize the Sacramento-San Joaquin Delta and ensure reliable water supplies for 25 million people. Projections show the project would create over 1 million jobs and boost the economy by $400 billion. The California WaterFix includes the construction of three intakes north of the Delta and modification of Clifton Court forebay that will provide operational pumping flexibility and protect against water supply disruption due to sea-level rise, earthquakes and flood events. The new intakes will also improve existing environmental conditions in the Delta. The California WaterFix is paired with the Eco Restore, which seeks to achieve the State’s co-equal goal of habitat restoration and reliability of supplies. Eco Restore is initially charged with 30,000 acres of restoration efforts under an accelerated effort by 2020 to improve the Delta. Based on these proposed improvements in system conveyance and habitat restoration, staff recommends the YLWD Board of Directors adopt a support position for the California WaterFix and California Eco Restore to ensure water supply reliability for the future. ATTACHMENTS: Name:Description:Type: CAWaterFix.pdf Information Paper Backup Material MWDOC_Newsletter.pdf MWDOC Newsletter Backup Material Resolution_No__17-01_-_CA_Water_Fix.docx Resolution Resolution CALIFORNIA WATER FIX A STATE-OF-THE-ART SOLUTION TO REPAIR AND PROTECT CALIFORNIA’AGING WATER DELIVERY SYSTEM FROM THE NORTH STATE WATER PROJECT (SWP) The State Water Project (SWP), built and operated by the California Department of Water Resources, is a massive water delivery system that provides water to more than 25 million Californians and 700,000 acres of farmland. SACRAMENTO-SAN JOAQUIN BAY DELTA The Sacramento-San Joaquin Bay Delta (Delta) is the focal point for water distribution through the state, serving as the hub through which water passes from north to south. Its complex maze-like waterways, supported by a series of man-made levees, are highly susceptible to damage from flooding and earthquakes. 750 SPECIES OF PLANTS AND WILDLIFE $2 3 MILLION ACRES OF FARMLAND AT RISK WITH MAJOR DELTA FAILURE 100-year-old levees are prone to failure in a large earthquake, threatening to disrupt water deliveries throughout California. RISING SEA LEVELS Native fish populations are in decline and many species are endangered due to current operating procedures and unnatural river flows caused by pumping. ENVIRONMENTAL DECLINE MAJOR THREATS TO THE DELTA Sea level rise threatens salt water intrusion and contamination of fresh water, disrupting water supplies for weeks, months, or years. EARTHQUAKES 50% S NEARLY OF ORANGE COUNTY’ TOTAL WATER SUPPLY IS IMPORTED S WHAT IS THE PROBLEM? OUTDATED AND UNRELIABLE SYSTEM COST OF DOING NOTHING IS TOO GREAT ENVIRONMENTAL DECLINE The existing system is in need of repair so that it can withstand the impacts of changing weather patterns and seismic events. Aging dirt levees are all that protect most Northern California water supplies from rising sea levels, intense storms and floods. If these levees fail, salt water intrusion would contaminate our fresh water and disrupt water service to 25 million Californians. Without fixes to our water supply infrastructure, the state’s environment and economy is at serious risk of water supply disruption, job loss, higher food & water prices and species decline 3 California is positioned as the agricultural powerhouse of the United States – leading all other states in farm income. A fix to our water delivery system would save hundreds of thousands of acres of farmland, preserve nearly 12,000 farm jobs, and secure reasonable food prices. 70% Chance of a 6.7+ magnitude earthquake hitting San Francisco Bay before 2030. An earthquake of this magnitude could destroy this valuable source of water. The California Delta is considered the most vulnerable location in the state’s water system. 2 1 BILLION LOCAL ECONOMY PROPOSED TUNNEL ROUTE AND INTAKE LOCATIONS The cost to fix California’s primary water delivery system is estimated at $14.9 billion – or about $5 a month for urban water users – and will be paid for by public water agencies that rely on the supplies. The California Water Fix will protect economic interests across the state while generating thousands of jobs. California Water Fix is a massive construction project that will secure water reliability for generations. The plan is a state-of-the-art solution to the many threats facing the Delta, protecting California’s water supply and native fish populations. TWO FOOT DIAMETER TUNNELS 40 $BILLIONS $15 COST OF CONSTRUCTION = IN ECONOMIC ACTIVITY DEPENDENT ON DELTA 1000s JOBS CREATED FOR CALIFORNIANS THE CALIFORNIAN SOLUTION BILLION up to 150 feet below ground have been designed to protect California’s water supplies. groundwater recharger work better. periods, guard against water supply disruptions, and ensure that local water projects like recycling and The California Water Fix ensures that the millions of Californians dependent on the Delta will have a protected water supply. Fixing our water delivery system will improve the natural direction of river flows, help native fish species navigate to and from the ocean during critical migration State of the art construction techniques, Without this solution, the environment will continue to decline, delta fish species will inevitably perish, and a major disaster will spell economic disruption for all of California. fish screens, and tunneling innovations residents. promise minimal impact on delta MWDOC Directors Urge Support for Critical Water Project California WaterFix would supply 25 million people; boost economy by $400 billion Recognizing the importance of the California WaterFix to Southern California’s water reliability, Directors of the Municipal Water District of Orange County (MWDOC) on December 5 unanimously approved a resolution of support for the proposed project. The California WaterFix would stabilize the Sacramento-San Joaquin Delta and ensure reliable water supplies from Northern California. About half of the water delivered to Orange County flows through the Delta into the State Water Project (SWP), which carries it south. Water through the SWP is also critical to filling Southern California’s emergency storage. “The California WaterFix is critical to ensuring we can continue to reliably serve our customers with water from north of the Delta,” MWDOC President Wayne Osborne said. “It’s not about getting more water, it’s about reliability and protecting our investments. It is not a question of “if;” without decisive action, the Delta will fail.” About 25 million people – from Orange County to Silicon Valley -- rely on this same vital water supply. Securing its reliability will protect nearly 1 million jobs statewide, based on a University of California study. Projections show the project would create 1.1 million jobs and boost the state economy by $400 billion. MWDOC is a wholesale water supplier serving 2.2 million people in Orange County. The agency’s resolution in support of the WaterFix passed 7-0. MWDOC is launching a campaign to build support for decisive action among Orange County leaders and residents. The California WaterFix would stabilize water deliveries by constructing tunnels that would allow water to travel south beneath the Delta, rather than through it. Additionally, the intakes would move north of the Delta, providing more protection to the Delta Smelt and other fish. Had the Waterfix been in place the past year, enough additional water would have been captured to supply 2.5 million families. Regulations and other conditions allowed that water to flow to the ocean. The California WaterFix, projected to cost $15 billion, would be paid for by those who receive the water. Southern California’s share is expected to be approximately 25 percent. In addition to improving water deliveries, it would also help protect water supplies from an earthquake that would destroy many of the Delta’s 50-year-old levees. MWDOC’s Water Reliability Study found the California WaterFix is the single most cost-effective project to ensure long term water reliability. Without the WaterFix or substantial local projects, OC would face frequent shortages requiring residents to cut back water use. Federal and state environmental studies are underway on the WaterFix. While the State Water Project originally envisioned a conveyance system that would take water around the Delta instead of through it, the WaterFix faces opposition in Northern California. The California WaterFix is paired with California EcoRestore, which would stabilize the Delta through extensive habitat restoration. For more information about the California WaterFix, see www.californiawaterfix.com Resolution No. 17-01 In Support of the California Eco Restore and WaterFix Preferred Alternative 1 RESOLUTION NO. 17-01 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT IN SUPPORT OF THE CALIFORNIA ECO RESTORE AND CALIFORNIA WATERFIX PREFERRED ALTERNATIVE (NO. 4A) WHEREAS, the Delta, formed by the confluence of the Sacramento and San Joaquin Rivers as they come together and flow into San Francisco Bay, is a major water hub for California’s water supply system for the majority of the State, including 30% of the supplies for Southern California, and therefore underpins the overall economy of California, which stands equivalent to the 6th largest Country in the world; and WHEREAS, the Delta historically was a complex and dynamic natural system driven by tidal fluctuations and natural marsh flooding that has been highly altered over the last 100 years, with many of the levees and islands reclaimed from former marshlands for development or farming. The scientific consensus is that the Delta is not sustainable as it exists today and that changes must be made in order to stabilize conditions; and WHEREAS, it has been about 55 years since voter-approval of the State Water Project (SWP), which was never completed as originally envisioned, to include an independent conveyance facility which would allow increased capture and storage of water during periods of high flows and would also minimize conflicts with fisheries; and WHEREAS, as the result of federal court decisions, U.S. Fish & Wildlife Service and National Marine Fisheries Service Biological Opinions, as well as other regulatory constraints to protect native species in the Delta, the SWP has not been able to collect, store, and deliver an estimated volume of 3.6 million acre-feet of water since 2008; and WHEREAS, Governor Brown’s California WaterFix and California Eco Restore proposal provide a framework of how best to approach the management of the Delta’s combined water and land resources in a manner that will realistically achieve improvements in both water supply reliability and ecosystem protection for the Delta as an evolving place by balancing the many competing demands; and WHEREAS, the California WaterFix and Eco-Restore proposal will help with water supply reliability by improving essential ecosystem functions so that populations of endangered or threatened aquatic species will be strengthened; and Resolution No. 17-01 In Support of the California Eco Restore and WaterFix Preferred Alternative 2 WHEREAS, the California Eco Restore will pursue more than 30,000 acres of critical Delta restoration over the next 5 years, including the improvements of habitat conditions for fisheries migration, restoring tidal and non-tidal wetland habitat for native wildlife, and improving connectivity among existing grassland and other natural habitats; and WHEREAS, the California WaterFix includes the construction of three intakes north of the Delta, two 35-mile 9,000 cfs underground tunnels, and modification of Clifton Court forebay that will provide operational pumping flexibility and protect against water supply disruption due to sea-level rise, earthquakes and flood events; and WHEREAS, the three new intakes north of the Delta will improve existing environmental conditions in the Delta by reducing the current reverse flow conditions, minimizing the trapping of migrating fish and reducing diversions during critical fish migration periods, which will provide for more operational flexibility to enhance water deliveries, especially during wet periods; and WHEREAS, the new conveyance operations would also provide water moving through the south Delta channels to reduce salinity levels; and improving the SWP system can increase regional storage reserve levels. These storage reserves are used to protect the region from devastating effects of drought and other emergencies. The California WaterFix will help ensure that Orange County will have sufficient supplies at critical times when we need them; and WHEREAS, the 2016 Orange County Water Reliability Study revealed a number of important findings with implications for Orange County’s water reliability, including that without new supply and system investments made by Metropolitan Water District of Southern California (“Met”), Met’s member agencies (including the Yorba Linda Water District (“YLW D”)) and Orange County, projected water shortages would be too frequent and overall reliability would not be sustainable by as early as 2030; and WHEREAS, YLWD should continue to support and strongly advocate for the implementation of the California WaterFix and Eco Restore proposal, as it represents the most cost-effective large-scale reliability solution to improving regional water supply reliability for Southern California and hence the reliability for Orange County. The Orange County water reliability supply analyses assumed that the California W aterFix results in “recovery” of historical supplies in the amount of approximately 440,000 acre-feet per year on average and noted that changes in the project costs or supply development could result in changes to this recovered amount; and Resolution No. 17-01 In Support of the California Eco Restore and WaterFix Preferred Alternative 3 WHEREAS, moving forward with the California WaterFix will not be an inexpensive endeavor; however, it is the most cost-effective investment of the ratepayers’ dollars to maintain and continue our economic vitality for the region. Furthermore, all of the costs for California WaterFix will be paid for exclusively by water agencies benefiting from the project. NOW THEREFORE BE IT RESOLVED that the Board of Directors of the Yorba Linda Water District does hereby support the California Eco Restore and California WaterFix Preferred Alternative (No. 4A) as described in the environmental documents with reasonable adherence to the current, public operating criteria and cost allocation principles and assumptions. PASSED AND ADOPTED this 24th day of January 2017, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP ITEM NO. 9.1 AGENDA REPORT Meeting Date: January 24, 2017 Subject:Status of Recruitment Process for Ad Hoc Citizens Advisory Committee ATTACHMENTS: Name:Description:Type: ADCAC_Roles_Responsibilities_and_Duties.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material RECOMMENDED ROLES, RESPONSIBILITIES AND PROCEDURES FOR THE YLWD AD HOC CITIZENS ADVISORY COMMITTEE (AHCAC) Purpose: •Provide input, comments and feedback on the topic being considered by the YLWD Board. •Input will not be provided on matters other than the topic under consideration of the Committee. Meetings: •Meeting schedule to be determined by the Committee. •Meetings to take place in the District’s Training room. •Committee meetings will be agendized and administered in accordance with the Brown Act. •All perspectives on the topic being considered should be presented (pro, con and neutral) to the Committee to provide a balanced and thorough discussion and review of the project on the table. Facilitator: •Select an impartial person, with technical background and leadership skills. •Facilitate AHCAC meetings and help guide the discussions to ensure that all Committee members have all background information they may need. •Will not seek to influence the Committee’s discussions or decisions. •Will ensure all Committee members have ample and fair opportunity to provide input. •Ensure meetings are conducted with a level of decorum and professionalism that allows all issues to be identified and reviewed. •Will lead the preparation of any written documents summarizing the comments and concerns of the AHCAC prior to YLWD Board consideration. •YLWD staff will provide administrative and technical support to the facilitator and Committee as needed. Backup Material Distributed Less Than 72 Hours Prior to the Meeting ITEM NO. 9.1. MATERIALS SUBMITTED BY: Malissa Muttaraid MEETING DATE: January 24, 2017 ITEM NO. 9.2 AGENDA REPORT Meeting Date: January 24, 2017 Budgeted:Yes Total Budget:$151,624 To:Board of Directors Funding Source:Water Operating Fund From:Marc Marcantonio, General Manager Account No:Multiple Presented By:Marc Marcantonio, General Manager Dept:Board of Directors Prepared By:Gina Knight, HR/Risk and Safety Manager Subject:Board of Directors' Compensation and Benefits DISCUSSION: At the request of President Miller, this item has been placed on the agenda to provide the Board with an opportunity to discuss the Directors' compensation and benefits. Historically, the Board has reviewed its compensation rate at the end of each calendar year. In accordance with California Water Code Sections 20201-20202, the amount of compensation for members of the Board of Directors is currently set at $150 per day for each day's attendance at meetings of the Board and other meetings attended at the request of the Board, not to exceed 10 days per calendar month. Section 20202 also allows for an increase in the amount of compensation up to 5% for each calendar year following the operative date of the last adjustment. As the last adjustment was effective March 24, 2003 (per attached Ordinance No. 03-01), the Board of Directors would be eligible for an increase in their current compensation rate up to $282.85 per day (as of March 24, 2016). Should the Board recommend an increase in the amount of compensation, an ordinance would need to be adopted pursuant to the procedures specified in Water Code Sections 20203-20204 and Government Code Section 6066: A public hearing would need to be held prior to adoption of the ordinance. Notice of the hearing would need to be published in a newspaper of general circulation once a week for two successive weeks prior to the public hearing. The ordinance would become effective 60 days from the date of its final passage. In accordance with the Board of Directors' Policies and Procedures Manual, the Directors are currently provided with the following benefits: medical, dental, vision, and life insurance. The District pays 100% of the premium for Director coverage and 2/3 of the premium for Directors' dependent's coverage. Attached is a copy of Section 9.0 (Directors' Compensation, Benefits and Expense Reimbursement) for reference. Also attached are the results of a compensation and benefits survey of 12 similar agencies that was recently conducted by the Human Resources Department. Should the Board recommend a change to their benefits, Resolution No. 16-12 will need to be amended or rescinded and replaced at a future meeting. Revisions reflecting the Board's decision to modify the regular meeting dates and times will be incorporated at the same time. ATTACHMENTS: Name:Description:Type: Ordinance_No._03-01.pdf Backup Material Backup Material Excerpt_from_BOD_Policies_and_Procedures_Manual.pdf Backup Material Backup Material BOD_Salary_and_Benefits_Survey.xlsx Backup Material Backup Material ORDINANCE NO. 03-01 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING COMPENSATION FOR MEMBERS OF THE BOARD OF DIRECTORS WHEREAS, The Yorba Linda Water District is organized and operates under authority of the County Water District Act, Division 12, commencing with Section 30,000 of the California Water Code: and WHEREAS, Water Code Section 20202, permits water districts, as defined in Section 20200, which includes the Yorba Linda Water District,to increase compensation of members of the Board of Directors in an amount in excess of$100 per day for each day's attendance at Board meetings or each day's service as a Director at the Board's request, not to exceed ten day's per calendar month; and, WHEREAS, the increase in compensation authorized pursuant to Section 20202 is limited to five percent for each calendar year following the operative date of the last adjustment; and WHEREAS, the Board of Directors of the Yorba Linda Water District, by action taken in February, 1991 set the daily compensation under Water Code Section 30507 at $125 for Board and Board Committee meetings and $50 for other service rendered at the request of the Board; and WHEREAS, the Board of Directors of the Yorba Linda Water District has conducted a public hearing upon notice pursuant to Government Code Section 6066 as required by Water Code Section 20203. NOW THEREFORE,the Board of Directors of the Yorba Linda Water District does hereby find, declare, order and ordain as follows: Section 1. The matters set forth in the recitals of this Ordinance are true and correct. Section 2. Upon and after the effective date of this Ordinance, compensation for members of the Board of Directors of the Yorba Linda Water District shall be $150 per day for each day's attendance at meetings of the Board of Directors and other meetings attended at the request of the Board of Directors. Compensation for any type of service shall not exceed ten (10)days in any calendar month. Members of the Board of Directors shall receive reimbursement or payment of expenses, according to District rules, incurred in the performance of each Director's duties required or authorized by the Board of Directors. Section 3. This Ordinance shall become effective sixty(60) days after its adoption. PASSED AND ADOPTED this 23rd day of January, 2003 by the following called vote: AYES: Beverage, Mills, Summerfield NOES: Armstrong ABSENT: Korn ABSTAIN: kW.t Summerfi'rd, JEST son, Secretary 16 staff to post a completed form on the District’s website in accordance with the requirements set forth in FPPC Regulation 18705.5. 9.0 DIRECTORS’ COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENT Directors’ Compensation 9.1 As of January 23, 2003, compensation for members of the Board shall be $150 per day for each day’s attendance at meetings of the Board and other meetings attended at the request of the Board, including reasonable and necessary travel time (see Appendix 1). Compensation for any type of service shall not exceed ten days in any calendar month. 9.2 Directors shall complete an Activity Report and Compensation Form (see Exhibit C) on a monthly basis. Directors have until the 15th day of the following month to file said reports with the General Manager or his/her designee. If an activity report is not returned by this deadline, no compensation shall be paid to the Director for that reporting period. 9.3 All activity reports shall be reviewed and approved by the President or the Vice President. 9.4 Increases in compensation are limited to five percent for each calendar year following the operative date of the last adjustment. The Board shall consider its compensation rate following the reorganization meeting held at the first regular meeting of the Board in December of each year. If the Board recommends an increase in the amount of compensation, an Ordinance shall be considered and adopted by the Board according to the following procedures: A. A public hearing shall be held prior to adoption of the Ordinance. B. Notice of the hearing shall be published in a newspaper of general circulation once a week for two successive weeks prior to the public hearing. C. The Ordinance shall become effective 60 days from the date of its final passage. 9.5 The District does not provide any of its Directors with loans. Benefits 9.6 Directors and their eligible dependents may participate in the health benefits plans provided by the District, including medical, dental and vision plans. The District shall pay the premium amount for Directors and 2/3 of the premium amount for eligible dependents. Directors are responsible for paying the balance of the premium amount for eligible dependents. Health benefits provided to Directors shall not be greater than the most generous plan being offered to any group of District employees. A Director is also eligible for District-provided post-service health benefits if the following conditions are satisfied: the Director’s term began before January 1, 1995 and continued uninterrupted until on or after May 27, 2010; and the Director began receiving health benefits from the District before January 1, 1994. The rate of accrual for post-service health benefits is one year of benefits for each three years of service to the District as a Director. In addition to the terms and conditions provided herein, any terms or conditions set forth in the personnel rules of the District that are applicable to retiree health benefits shall also apply to post- service health benefits for Directors, except those conditions relating to good standing 17 and adequate notice of retirement. Directors are also eligible for District-provided Group Life insurance and Accidental Death and Dismemberment insurance in amounts up to $10,000 each. Additionally, Directors may elect to participate in the District’s deferred compensation plan. Enrollment in any of the above benefits plans is subject to the rules and restrictions of the plans. Travel Expense Reimbursement 9.7 Directors are encouraged to attend conferences, conventions, meetings, symposiums, intergovernmental meetings and legislative sessions relating to the mission of the District. Directors shall receive reimbursement or payment of expenses, according to District rules, incurred in the performance of their duties as required or authorized by the Board. Attendance at an event must be pre-approved or ratified by a majority vote of the Board in order to be considered as an activity for the purposes of compensation and payment or reimbursement of travel expenses. Directors’ rates for reimbursement and payment of travel expenses shall not be greater than rates specified for District employees. 9.8 Directors shall be reimbursed for actual costs to attend activities, not to exceed: Flight: $350 Per Round Trip (Most Economical Class) Car Rental: $50 Per Day (Economy to Standard Size Vehicle) Lodging: $275 Per Night Meals: $75 Per Day Actual and Necessary Expenses: $30 Per Day 9.9 Expenditures for lodging, meals, and transportation shall provide for reasonable and necessary comfort and convenience. Directors shall be mindful that public funds are being spent and that only a reasonable and necessary level of expense is warranted. 9.10 When available, Directors must use coach class for commercial travel and group/government rates for lodging. If the group/government rate is not available, the reimbursement cannot be more than the amount set forth above. In the event a more expensive class of transportation is used, the reimbursable amount shall be limited to the cost of the most economical class of transportation available as identified above. 9.11 If an expense does not fall within the reimbursement rates identified in Section 9.12, it must be preapproved or ratified by a majority vote of the Board in a public meeting. 9.12 Meal expenses include the reasonable and necessary costs of meals and beverages, not including alcoholic beverages. Meal expenses shall be reimbursed on a daily basis not to exceed $75 per day. Meal expenses for partial days shall be reimbursed on a meal by meal basis as follows: $15 for breakfast, $25 for lunch, and $35 for dinner. Any amount spent over the daily or partial day reimbursable amounts set forth in this section may not be deducted from another day’s reimbursable amount during that same activity. Additionally, any amounts not spent over the daily or partial day reimbursable amounts set forth above may not be added to another day’s reimbursable amount during that same activity. No reimbursement shall be provided for alternative meals when the District has paid for the cost of the activity including any incorporated meals. Attendance at receptions before dinner shall not be considered a meal. Directors/City Council Members Compensation and BenefitsJan-17AgencyPer Mtg Stipend# Mtgs Pd/MonthMedical Ins.Dental Ins.Vision Ins.Depend. CoverLife Ins.OtherEl Toro WD$198.0010No 100%100%No m, Yes d & v$10,000Long-term care insurance paid up to separation/retirement.Irvine Ranch WD$260.0010Yes ①100%100%YesNoneNo deferred comp plan.Laguna Bch Cty WD $0.00unpaid100%100%100%77% m, Yes d & v$10,000Mesa WD $240.0010$1400 cafeteria ②under cafeteriaunder cafeteriaunder cafeteria$25,000EAP included.Moulton Niguel WD$220.0010 mtgs/days95.7% ③95.7% paid95.7% paidYes$15,000May contribute to 457 Plan w/2% matchMWDOC$256.5510 mtgs/days80-100% 80-100%100% paidYesNoneOCWD$250.0010 daysYes YesYesYes$25,000Private 401A defined contribution retirement plan.Placentia, City of $150/Month2 mtgs, average95% BlShield Access100%100%Yes$5,000Looking at inclusion of CC in deferred compensation plan.Sta Margarita WD$210.0010 daysNoneNoneNoneNoneNoneThere may be additional special meetings.So Coast WD$190.0010 mtgs/days NoneNoneNoneNoneNoneDirectors may contribute to 457 Plan.Walnut Valley WD$150.007$1750/month ④under cafeteriaunder cafeteriaunder cafeteria$10,000 ④Yorba Linda, City of$500.002 ⑤NoneNoneNoneNoneNone$100 car allowance, $36 phone allowance.Yorba Linda WD$150.0010 mtgs/days100%100%100%66-2/3% paid$10,000EAP included.①Directors pay the same as the employees pay.①2017 Monthly Payroll Deductions Emp/Emp+1/FamilyPERS Care PPO$159/$318/$414②(Mesa WD) Health benefits: medical/dental/vision. If you don't spend $1400, you don't get to keep the remainder. PERS Choice PPO$71/$142/$186Anthem Traditional HMO ` $156/$311/$406③(MNWD) Med, dental, vision same as that offered to all employees. District pays 95.7% of cost. Increases in cost are paid 50%/50%Anthem Select HMO$16/$31/$42going forward to June 30, 2017 for employees and dependents. Health benefits after leaving office are $235/month for those hired prior to 1995.Blue Shield Access+ HMO$135/$270/$352④(Walnut Valley WD) To be eligible for all benefits, Directors must serve one term of office (4 Years). Once eligible Directors receive a $1750/month allowance, which includes dependents. If they do not spend the full amount, they do not get to keep the remainder.⑤ (Yorba Linda, City of) City Council Members may be appointed to meetings of other agencies. Attendance at meetings of the three agencies listed below are paid by the agency holding the meeting, not the City.Foothill/Eastern Trans Corridor Agency: $120 per meeting, maximum 18 meetings per quarter +$0.56/mile. OC Fire Authority: $100.00 per meeting/per day, maximum $300.00 per month.OC Mosquito & Vector Control District: $100.00 per meeting, maximum $1200 per year.Ordinance No. 2014-1004, passed July 15, 2014, following passage by voters of Measure JJ, eliminated health care and PERS retirement contribution for Council Members.Note: Amount of life insurance payout decreases at age milestones, which may differ for the specific life insurance company offering the insurance. ITEM NO. 9.3 AGENDA REPORT Meeting Date: January 24, 2017 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 Month Ending December 31, 2016 SUMMARY: Presented are the Budget to Actual Reports for the Month Ending December 31, 2016. DISCUSSION: For the month ending December 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 December 31, 2016, Total Water Operating Revenue, as presented, is 57.15% of annual budget. Variable Water Costs are 55.43% and Total Water Operating Costs is 51.43% of their respective annual budgets. The majority of Supplies and Services expenses for the Water Fund are below budget except for Materials and Utilities. Other Non-Operating Expenses are above budget due to penalty credits issued. Total Sewer Operating Revenue is 53.35% and Total Sewer Operating Costs is 41.38% of their respective annual budgets. Other Non-Operating Expenses reflect a negative amount due to the District being reimbursed for the over payment of prior year costs assessed by the Orange County Sanitation District. 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: Consolidated_Budget_to_Actual_Statement.xlsx December 2016 Consolidated Statement Backup Material December_2016_Water_Statement.xlsx December 2016 Water Fund Statement Backup Material December_2016_Sewer_Statement.xlsx December 2016 Sewer Fund Statement Backup Material Water_Variable_Revenue_vs_Variable_Cost.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material Financial_Trends.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material Yorba Linda Water District Summary Financial Report Consolidated Budget to Actual Statement For the Month Ending December 31, 2016 Annual YTD YTD YTD YTD Budget Budget Actual Under(Over)% of FY 2017 FY 2017 FY 2017 Budget Budget Revenue (Operating): Water Revenue (Residential) $13,907,406 $7,543,377 $8,055,017 5,852,389 57.92% Water Revenue (Commercial & Fire Det.) 1,874,818 $1,016,901 1,001,429 873,390 53.41% Water Revenue (Landscape/Irrigation) 2,998,777 $1,626,537 2,182,677 816,100 72.79% Water Revenue (Service Charge) 10,036,923 5,018,462 5,138,936 4,897,987 51.20% Sewer Charge Revenue 1,852,837 926,419 940,587 912,250 50.76% Locke Ranch Assessments 198,400 99,200 114,267 84,133 57.59% Other Operating Revenue 654,825 327,413 503,008 151,817 76.82% Total Operating Revenue:31,523,986 16,558,307 17,935,921 13,588,065 56.90% Revenue (Non-Operating): Interest 115,000 57,500 151,498 (36,498) 131.74% Property Tax 1,450,000 797,500 876,370 573,630 60.44% Other Non-Operating Revenue 616,525 308,263 132,789 483,736 21.54% Total Non-Operating Revenue: 2,181,525 1,163,263 1,160,657 1,020,869 53.20% Total Revenue 33,705,511 17,721,570 19,096,578 14,608,933 56.66% Expenses (Operating): Variable Water Costs (G.W., Import & Power) 13,179,477 7,418,790 7,305,095 5,874,382 55.43% Salary Related Expenses 9,253,623 4,878,070 4,572,385 4,681,238 49.41% Supplies & Services 4,969,229 2,500,206 2,055,282 2,913,947 41.36% Total Operating Expenses 27,402,329 14,797,066 13,932,762 13,469,568 50.85% Expenses (Non-Operating): Interest on Long Term Debt 1,721,884 860,942 815,734 906,150 47.37% Other Expense 23,000 11,500 9,517 13,483 41.38% Total Non-Operating Expenses: 1,744,884 872,442 825,251 919,633 47.30% Total Expenses 29,147,213 15,669,508 14,758,013 14,389,200 50.63% Net Position Before Capital Contributions 4,558,298 2,052,062 4,338,565 219,733 95.18% Capital Contributions - - 674,990 674,990 - Net Position Before Depreciation 4,558,298 2,052,062 5,013,555 894,723 109.99% Depreciation & Amortization 7,561,272 3,780,636 3,562,030 3,999,242 47.11% Total Net Position ($3,002,974)($1,728,574)$1,451,525 ($3,104,519)-48.34% (122,370) Yorba Linda Water District Budget to Actual Statement - Water Fund For the Month Ending December 31, 2016 Annual YTD Dec YTD YTD YTD YTD Budget Budget Actual Actual Under(Over)% of Annual % of YTD FY 2017 FY 2017 FY 2017 FY 2017 FY Budget Budget Budget Revenue (Operating): Water Revenue (Residential)$13,907,406 $7,543,377 $973,388 $8,055,017 5,852,389 57.92%106.78% Water Revenue (Commercial & Fire Det.)1,874,818 1,016,901 133,091 1,001,429 873,389 53.41%98.48% Water Revenue (Landscape/Irrigation)2,998,777 1,626,537 190,037 2,182,677 816,100 72.79%134.19% Water Revenue (Service Charge)10,036,923 5,018,462 828,839 5,138,936 4,897,987 51.20%102.40% Other Operating Revenue 617,654 308,827 45,494 443,720 173,934 71.84%143.68% Total Operating Revenue:29,435,578 15,514,103 2,170,849 16,821,779 12,613,799 57.15%108.43% Revenue (Non-Operating): Interest 100,000 50,000 21,480 137,323 (37,323)137.32%274.65% Property Tax 1,450,000 797,500 670,499 876,370 573,630 60.44% 109.89% Other Non-Operating Revenue 604,600 302,300 13,860 82,883 521,717 13.71%27.42% Total Non-Operating Revenue:2,154,600 1,149,800 705,839 1,096,576 1,058,024 50.89%95.37% Total Revenue 31,590,178 16,663,903 2,876,688 17,918,355 13,671,823 56.72% 107.53% Expenses (Operating): Variable Water Costs (G.W., Import & Power)13,179,477 7,418,790 1,046,811 7,305,095 5,874,382 55.43%98.47% Salary Related Expenses 8,279,036 4,374,339 819,146 4,082,877 4,196,159 50.68%93.34% Supplies & Services: Communications 242,840 106,920 9,261 95,162 147,678 39.19%89.00% Contractual Services 479,560 239,780 48,163 205,810 273,750 42.92%85.83% Data Processing 245,351 122,676 35,131 104,264 141,087 42.50%84.99% Dues & Memberships 88,878 72,567 8,722 71,836 17,042 80.83%98.99% Fees & Permits 234,630 117,315 6,012 79,865 154,765 34.04%68.08% Board Election 228,780 114,390 - 72,539 156,241 31.71%63.41% Insurance 266,296 133,148 19,994 120,345 145,951 45.19% 90.38% Materials 724,812 362,406 89,143 443,405 281,407 61.18%122.35% District Activities, Emp Recognition 27,017 13,509 670 5,060 21,958 18.73%37.45% Maintenance 393,245 196,623 46,933 149,140 244,105 37.93%75.85% Non-Capital Equipment 158,364 79,182 13,951 55,290 103,074 34.91%69.83% Office Expense 40,216 20,108 4,923 15,921 24,295 39.59%79.18% Professional Services 562,720 281,360 18,271 207,391 355,329 36.86%73.71% Training 69,299 34,650 2,628 14,444 54,855 20.84%41.69% Travel & Conferences 111,263 55,631 1,764 22,264 88,999 20.01%40.02% Uncollectible Accounts 32,550 16,275 (655) 4,111 28,439 12.63%25.26% Utilities 116,250 58,125 10,701 65,026 51,223 55.94%111.87% Vehicle Equipment 322,916 161,458 37,090 151,356 171,560 46.87%93.74% Supplies & Services Sub-Total 4,344,986 2,186,120 352,702 1,883,229 2,461,757 43.34%86.14% Total Operating Expenses 25,803,499 13,979,249 2,218,659 13,271,201 12,532,298 51.43%94.94% Expenses (Non-Operating): Interest on Long Term Debt 1,721,884 860,942 130,618 815,734 906,151 47.37%94.75% Other Expense 23,000 11,500 (594) 12,259 10,741 53.30%106.60% Total Non-Operating Expenses:1,744,884 872,442 130,024 827,993 916,892 47.45%94.91% Total Expenses 27,548,383 14,851,691 2,348,683 14,099,194 13,449,189 51.18%94.93% Net Position Before Capital Contributions 4,041,795 1,812,212 528,005 3,819,161 222,634 94.49%210.75% Capital Contributions - - - 351,960 351,960 - - Net Position Before Depreciation 4,041,795 1,812,212 528,005 4,171,121 574,594 103.20%230.17% Depreciation & Amortization 6,198,432 3,099,216 483,506 2,895,619 3,302,813 46.72%93.43% Total Net Position (2,156,637) (1,287,004) 44,499 1,275,502 (2,728,219) -59.14%-99.11% Capital - Direct Labor (21,685)(113,013) Yorba Linda Water District Budget to Actual Statement - Sewer Fund For the Month Ending December 31, 2016 Annual YTD Dec 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 $926,419 $155,623 $940,587 912,251 50.76% 101.53% Locke Ranch Assessments 198,400 99,200 94,317 114,267 84,133 57.59% 115.19% Other Operating Revenue 37,171 18,586 13,416 59,288 (22,117) 159.50% 319.00% Total Operating Revenue: 2,088,408 1,044,204 263,356 1,114,142 974,266 53.35% 106.70% Revenue (Non-Operating): Interest 15,000 7,500 1,887 14,175 825 94.50% 189.00% Other Non-Operating Revenue 11,925 5,963 (126) 49,906 (37,981) 418.50% 837.00% Total Non-Operating Revenue: 26,925 13,463 1,761 64,081 (37,156) 238.00% 476.00% Total Revenue 2,115,333 1,057,667 265,117 1,178,223 937,110 55.70%111.40% Expenses (Operating): Salary Related Expenses 974,587 503,731 105,209 489,508 485,079 51.19% 97.18% Supplies & Services: Communications 16,085 8,043 697 4,974 11,112 30.92% 61.84% Contractual Services 78,705 39,353 3,586 14,919 63,786 18.96% 37.91% Data Processing 18,358 9,179 2,644 7,975 10,383 43.44% 86.88% Dues & Memberships 6,907 5,418 657 5,407 1,500 78.28% 99.81% Fees & Permits 16,795 8,398 3,029 7,374 9,421 43.91%87.81% Board Election 17,220 8,610 - 5,460 11,760 31.71% 63.41% Insurance 20,044 10,022 1,505 9,058 10,986 45.19%90.38% Materials 104,688 52,344 1,783 15,024 89,664 14.35% 28.70% District Activities, Emp Recognition 2,034 1,017 50 381 1,654 18.71% 37.41% Maintenance 171,585 85,793 19,952 39,166 132,419 22.83% 45.65% Non-Capital Equipment 36,687 18,344 3,212 8,042 28,645 21.92% 43.84% Office Expense 2,884 1,442 364 1,192 1,693 41.31%82.63% Office Expense 2,884 1,442 364 1,192 1,693 41.31%82.63% Professional Services 35,280 17,640 1,299 9,075 26,205 25.72% 51.45% Training 7,786 3,893 168 1,759 6,027 22.60% 45.19% Travel & Conferences 13,702 6,851 133 1,539 12,163 11.23% 22.47% Uncollectible Accounts 2,450 1,225 (57) 803 1,647 32.78% 65.55% Utilities 9,550 4,775 726 5,094 4,456 53.34% 106.68% Vehicle Equipment 63,484 31,742 4,366 34,810 28,674 54.83% 109.67% Supplies & Services Sub-Total 624,243 314,086 44,114 172,052 452,192 27.56% 54.78% Total Operating Expenses 1,598,830 817,817 149,323 661,560 937,270 41.38% 80.89% Expenses (Non-Operating): Interest Expense - - - - - - - Other Expense - - (638) (2,742) (2,742) - - Total Non-Operating Expenses: - - (638) (2,742) (2,742) 0.00% 0.00% Total Expenses 1,598,830 817,817 148,685 658,818 940,013 41.21%80.56% Net Position Before Capital Contributions 516,503 239,850 116,432 519,405 (2,903)100.56%216.55% Capital Contributions - - - 323,030 323,030 - - Net Position Before Depreciation 516,503 239,850 116,432 842,435 320,127 163.10%351.23% Depreciation & Amortization 1,362,840 681,420 111,373 666,411 696,429 48.90% 97.80% Total Net Position (846,337) (441,570) 5,059 176,024 (376,302) -20.80%-39.86% Capital - Direct Labor (1,589) (9,356) ITEM NO. 9.4 AGENDA REPORT Meeting Date: January 24, 2017 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 Period Ending December 31, 2016 SUMMARY: Government Code Section 530607, et. seq., requires the person delegated to invest funds to make monthly report of investments to the legislative body. DISCUSSION: The Cash and Investment Portfolio Report presents the market value and percent yield for all District investments by institution. The Cash & Investment Report Summary includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The Fair Value Measurement Report categorizes investments with the fair value hierarchy established by generally accepted accounting principles. The total yield for the month ending December 31, 2016 is 0.97%. The overall increase in the investment balance from the previous month is approximately $1,948,000. A larger balance change includes an increase in the Water Operating Fund of $1,861,799 and an increase in the Sewer Operating Fund of $143,890, due to the receipt of tax apportionment payments from the County of Orange and a positive net effect between operating revenues and expenses through the reporting month of the fiscal year. While the Water Capital Project Reserve decreased by $49,076, due to Pay-As-You-Go status for payments related to capital improvements and other related capital purchases. The Conservation Reserve Fund decreased by $15,382, due to conservation related costs. STRATEGIC PLAN: FR 1-F: Continue to Record and Report the Fairly Stated Financial Activities of the District in a Timely and Transparent Manner to the Board of Directors and Member Agencies ATTACHMENTS: Name:Description:Type: Invst_Rpt_12-16.xlsx Cash and Investments Report for the Month Ending December 31, 2016 Backup Material Invst_Agenda_Backup_-_December_2016.xlsx Cash and Investment Summary Report December 2016 Backup Material Fair_Value_Measurement_Report_12-16.xlsx Fair Value Measurement Report for the Month Ending December 31, 2016 Backup Material Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 335,694$ 335,694$ Wells Fargo Bank 39,053 39,053 Pershing 374,747$ 374,747$ 0.99% Total 0.00% Money Market Accounts: 46,091$ 46,091 US Bank (Revenue Bonds) 0.10% 1,702,472 1,702,472 Bank of the West 0.08% 1,748,563$ 1,748,563$ 4.61% Total 0.08% Federal Agency Securities: 497,630$ 500,000 Federal Home Loan Bank 06/12/18 1.00% 499,465$ 500,000 Federal Home Loan Bank 06/13/18 1.10% 493,275$ 500,000 Federal Home Loan Bank 11/26/19 1.36% 2,116,079$ 2,124,676$ Federal Home Loan Bank 05/24/17 0.88% 3,606,449$ 3,624,676$ 9.50% Total 0.99% Certificates of Deposits: 248,141$ 248,000$ CIT Bank, Salt Lake 05/22/18 1.19% 248,551$ 248,000 Discover 05/22/18 1.19% 248,141$ 248,000 Goldman Sachs Bank 05/22/18 1.19% 248,652$ 248,000 Beal Bank 05/23/18 0.99% 249,601$ 247,000 Barclays Bank 04/30/18 0.98% 248,868$ 248,000 State Bank of India 05/14/18 1.14% 248,203$ 249,000 Webster Bank 05/03/18 0.90% 248,618$ 248,000 American Express Centurion Bank 05/23/18 1.19% 247,794$ 248,000 GE Capital Bank 05/24/18 1.10% 249,050$ 249,000 Merrick Bank 05/24/17 0.74% 248,196$ 248,000 BMW Bank 05/24/17 0.89% 248,604$ 249,000 Oriental Bank & Trust 05/29/18 1.05% 248,480$ 249,000 Silvergate Bank 05/30/18 1.00% 248,425$ 249,000 Enterprise Bank & TR Co Lowell 05/30/18 1.00% 248,465$ 249,000 Safra National Bank 05/31/18 1.00% 247,425$ 248,000 Townebank Portsmouth 05/31/18 1.00% 248,430$ 249,000 Mascoma Savings Bank 05/29/18 1.00% 100,288$ 100,000 Ally Bank Midvale Utah 12/11/17 1.54% 198,770$ 200,000 World's Foremost Bk Sydney 05/28/19 1.30% 247,410$ 248,000 Capital One Bk USA Natl Assn 05/13/19 1.20% 245,145$ 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.67% 244,163$ 248,000 EnerBank USA Salt Lake City 08/26/20 1.32% 245,783$ 248,000 EverBank Jacksonville Fla CTF 08/30/19 1.16% 179,958$ 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.25% 242,008$ 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.63% 5,927,168$ 5,943,000$ 15.61% Total 1.13% Pooled Investment Accounts: 7,455,997$ 7,455,997$ Local Agency Investment Fund 0.72% 516,980 517,103 CalTRUST Short Term 0.92% 18,331,794 18,407,580 CalTRUST Medium Term 1.11% 26,304,771$ 26,380,680$ 69.29%1.00% 37,961,698$ 38,071,667$ 100% Total Investments 0.97% 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. 12/31/16 Yorba Linda Water District Cash & Investment Portfolio Report December 31, 2016 ________________________________ Kelly D. McCann, Senior Accountant Below is a chart summarizing the yields as well as terms and maturities for the month of December 2016: Average # of Month Portfolio Days to of 2016 Yield Maturity December 0.97% 160 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 12/31/2015 12/31/2016 Monthly - December 19,457$ 23,367$ Year-to-Date 107,668$ 151,498$ Budget 2015/2016 2016/2017 Interest Budget, December YTD 46,500$ 57,500$ 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 $37.9 million in cash and investments which is split between minimum reserve requirements and what is available to meet current year obligations (operating costs, debt service, capital costs). Reserve Cash and Requirements Investments November 2016 % Alloc December 2016 % Alloc "Conditional Available for Fund Description Balance 11/30/2016 Balance 12/31/2016 Use" CY Obligations Water Operating Reserve 5,913,845$ 16.71%7,992,291$ 21.24%4,132,257$ 4,011,608 Cash & Investment Summary Report Cash & Investment Summary Comparison Between Current and Previous Month Water Operating Reserve 5,913,845$ 16.71%7,992,291$ 21.24%4,132,257$ 4,011,608 Water Emergency Reserve 1,044,115 2.95% 1,041,422 2.77%1,042,888 (1,466) Water Capital Project Reserve 17,364,088 49.07% 17,315,011 46.02% 1,820,000 15,495,011 Water Reserve for Debt Service 2,760,432 7.80% 2,762,681 7.34% 2,723,509 39,172 Maintenance Reserve 200,884 0.57% 200,884 0.53% 200,000 884 Water Employee Liability Reserve 371,986 1.05% 372,000 0.99% 372,000 (0) Conservation Reserve 1,460,879 4.13% 1,445,497 3.84% - 1,445,497 COP Revenue Bond 2008 - Reserve 2,163,118 6.11% 2,162,169 5.75% 2,147,096 15,073 Sewer Operating Reserve 205,721 0.58% 423,277 1.12% 239,825 367,572 Sewer Emergency Reserve 996,576 2.82% 996,526 2.65% 1,000,000 (3,474) Sewer Employee Liability Reserve 28,088 0.08% 28,088 0.07% 28,000 88 Sewer Capital Project Reserve 2,877,258 8.13% 2,886,157 7.67% 345,000 2,541,157 35,386,991$ 100.00% 37,626,003$ 100.00% 14,050,575$ 23,911,123 Water Operating 368,221 151,574 Sewer Operating 257,786 184,120 626,007 335,694 Totals 36,012,997$ 37,961,698$ Wells Fargo Bank Checking Yorba Linda Water District Fair Value Measurement Report December 31, 2016 Quoted Observable Unobservable Prices Inputs Inputs Investments Level 1 Level 2 Level 3 Total CalTRUST Investment Pool -$ 18,848,774$ -$ 18,848,774$ Local Agency Investment Fund - 7,455,997 - 7,455,997 U.S. Government Sponsored Agency Securities - 1,490,370 - 1,490,370 Negotiable Certificates of Deposit - 5,927,168$ - 5,927,168 Held by Bond Trustee: U.S. Government Sponsored Agency Securities - 2,116,079$ - 2,116,079 Total Investments -$ 35,838,388$ -$ 35,838,388$ ITEM NO. 13.1 AGENDA REPORT Meeting Date: January 24, 2017 Subject:Meetings from January 25, 2017 - March 31, 2017 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Event Date Attendance by: January 2017 OCSD Wed, Jan 25 Jones Yorba Linda Planning Commission Wed, Jan 25 Hawkins (As Needed) ISDOC Thu, Jan 26 Miller (All Directors PA) Board of Directors Workshop Meeting Tue, Jan 31 February 2017 MWDOC Wed, Feb 1 Nederhood OCWD Wed, Feb 1 Jones MWDSC Local Infrastructure Tour Fri, Feb 3 Hall/Miller WACO Fri, Feb 3 _____ (All Directors PA) Yorba Linda City Council Tue, Feb 7 Hall LAFCO Wed, Feb 8 Nederhood (As Needed) Yorba Linda Planning Commission Wed, Feb 8 Hawkins (As Needed) Board of Directors Regular Meeting Tue, Feb 14 MWDOC Wed, Feb 15 Nederhood OCWD Wed, Feb 15 Jones Yorba Linda Planning Commission Wed, Feb 15 Hawkins (As Needed) District Offices Closed Mon, Feb 20 YL City Council Tue, Feb 21 Hawkins OCSD Wed, Feb 22 Hawkins/Jones Yorba Linda Planning Commission Wed, Feb 22 Hawkins (As Needed) MWDSC State Water Project Tour Fri, Feb 24 Jones/Nederhood MWDSC State Water Project Tour Sat, Feb 25 Jones/Nederhood MWDSC State Water Project Tour Sun, Feb 26 Jones/Nederhood CSDA SDLA Conference Sun, Feb 26 Jones/Miller/Nederhood CSDA SDLA Conference Mon, Feb 27 Jones/Miller/Nederhood CSDA SDLA Conference Tue, Feb 28 Jones/Miller/Nederhood March 2017 CSDA SDLA Conference Wed, Mar 1 Jones/Miller/Nederhood MWDOC Wed, Mar 1 Nederhood OCWD Wed, Mar 1 Jones Board of Directors Regular Meeting Wed, Mar 1 WACO Fri, Mar 3 Jones (All Directors PA) Yorba Linda City Council Tue, Mar 7 Jones LAFCO Wed, Mar 8 Nederhood (As Needed) Joint Committee Meeting with City of Yorba Linda Mon, Mar 13 Miller/Hawkins Board of Directors Regular Meeting Tue, Mar 14 MWDOC Wed, Mar 15 Nederhood OCWD Wed, Mar 15 Jones Yorba Linda Planning Commission Wed, Mar 15 Hawkins (As Needed) YL City Council Tue, Mar 21 Miller OCSD Wed, Mar 22 Hawkins/Jones Interagency Committee Meeting with MWDOC and OCWD Thu, Mar 23 Miller/Nederhood Board of Directors Regular Meeting Tue, Mar 28 Yorba Linda Planning Commission Wed, Mar 29 Hawkins (As Needed) ISDOC Thu, Mar 30 Hawkins (All Directors PA) 4:00PM 5:30PM 6:30PM 11:30AM 5:30PM 8:30AM 5:30PM 6:30PM 6:30PM 6:00PM 5:30PM 5:30PM 7:30AM 6:30PM 8:00AM 4:00PM 8:30AM 8:30AM 8:30AM 8:30AM 6:00PM 6:30PM 5:15AM 5:30AM 7:00AM 5:00PM 5:30PM 8:30AM 5:30PM 6:30PM 7:00AM 6:30PM 5:30PM 7:00AM 7:30AM 6:30PM 8:00AM 6:30PM 6:30PM 11:30AM 4:00PM 8:30AM Board of Directors Activity Calendar Time 6:00PM 1/19/2017 4:51:05 PM