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Home My WebLink About2017-05-09 - Board of Directors Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, May 9, 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 5.2. Overview of Services Provided by White Nelson Diehl Evans 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 Workshop Meeting held January 31, 2017 Recommendation. That the Board of Directors approve the minutes as presented. 7.2. Minutes of Board of Directors Special Meeting Held February 13, 2017 Recommendation. That the Board of Directors approve the minutes as presented. 7.3. Minutes of Board of Directors Regular Meeting Held February 13, 2017 Recommendation. That the Board of Directors approve the minutes as presented. 7.4. Payments of Bills, Refunds, and Wire Transfers Recommendation. That the Board of Directors ratify and authorize disbursements in the amount of $516,429.31. 7.5. Declaration of Restrictive Covenants with Eric and Eileen Chang, 18721 Windy Knoll Drive, Yorba Linda Recommendation. That the Board of Directors authorize the President and Secretary to execute the Declaration of Restrictive Covenants with Eric and Eileen Chang. 7.6. Terms and Conditions for Sewer Service with Kurt Metcalf, 5041 Eureka Avenue, Yorba Linda Recommendation. That the Board of Directors approve the Terms and Conditions for Sewer Service with Kurt Metcalf, 5041 Eureka Avenue, Job No. 201714S. 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. District Investments Held with Safe Keeper/Custodial Agent Pershing LLC Recommendation. That the Board of Directors consider (1) retaining the District's non -trustee U.S. Government Sponsored Agency Securities and Certificates of Deposit investments with Pershing LLC as the safe keeper/custodial agent or (2) moving these investments to Bank of the West as the District's safe keeper/custodial agent. 8.2. Rules and Regulations for Sewer Service Recommendation. That the Board of Directors approve Resolution No. 17-14 adopting Rules and Regulations for Sewer Service, and rescinding Resolution No. 16-16. 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. Ad Hoc Citizens Advisory Committee Recommendations to the Board of Directors 9.2. Current Water Conservation Legislation 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 May 25, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) • Minutes of the meeting held March 13, 2017 at 4:00 p.m. (To be provided when available.) • Next meeting scheduled June 12, 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. 11.4. Ad Hoc Citizens Advisory Committee • Minutes of meeting held April 20, 2017 at 6:00 p.m. • Minutes of meeting held April 27, 2017 at 6:00 p.m. • Minutes of meeting held May 4, 3017 at 6:00 p.m. (To be provided when available). 12. INTERGOVERNMENTAL MEETINGS 12.1. MWDOC Elected Officials' Forum -April 26, 2017 (Miller/Nederhood) 12.2. OCSD Board - April 26, 2017 (Hawkins) 12.3. Meet ACWA's President Event - April 27, 2017 (Nederhood) 12.4. YL City Council - May 2, 2017 (Hawkins) 12.5. MWDOC Board - May 3, 2017 (Nederhood) 12.6. OCSD Operations Committee - May 3, 2017 (Hawkins) 12.7. OCWD - May 3, 2017 (Jones) 12.8. WACO - May 5, 2017 (Miller/Nederhood) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from May 10, 2017 - July 31, 2017 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS This section of the agenda is for the Board of Directors to authorize Director attendance at the listed events. 14.1. OC Water Summit - June 16, 2017 Recommendation. That the Board of Directors approve Director attendance at these events if desired. 15. ADJOURNMENT 15.1. A Board of Directors Workshop meeting has been scheduled for Tuesday, May 23, 2017 at 4:00 p.m. The next Regular Board of Directors Meeting will be held at 6:30 p.m. the same day. 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. AGENDA REPORT Meeting Date: May 9, 2017 ITEM NO. 7.1 Subject: Minutes of the Board of Directors Workshop Meeting held January 31, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Description: Type: 2017-01-31 - Minutes - BOD.doc Minutes Minutes 1. 2. 3. CI 2017 -XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, January 31, 2017, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 CALL TO ORDER The January 31, 2017 Yorba Linda Water District Board of Directors Workshop Meeting was called to order by President Miller at 4:02 p.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. PLEDGE OF ALLEGIANCE President Miller led the pledge. ROLL CALL DIRECTORS PRESENT J. Wayne Miller, President Al Nederhood, Vice President Phil Hawkins, Director Andrew J. Hall, Director Brooke Jones, Director STAFF PRESENT Marc Marcantonio, General Manager Steve Conklin, Engineering Manager John DeCriscio, Operations Manager Gina Knight, HR/Risk and Safety Manager Delia Lugo, Finance Manager Art Vega, Information Technology Manager Annie Alexander, Executive Assistant Cindy Botts, Water Consv Sup/Mgmt Analyst Kelly McCann, Senior Accountant Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Sanjay Guar, Vice President, Raftelis Financial Consultants PUBLIC COMMENTS Mr. Ben Parker, resident, commented on data to be provided to Raftelis for input into the District's financial model. Mr. Greg Shultz, resident, commented on the District's previous audits. Minutes of the YLWD Board of Directors Workshop Meeting Held January 31, 2017 at 4:00 p.m. 5. DISCUSSION ITEMS 5.1. Overview of Development Process for Water Rate Studies, Financial Policies and Plans, Water Rate Structures, and Cost of Service Mrs. Delia Lugo introduced Mr. Sanjay Guar and provided an overview of his work experience. Mr. Guar reviewed the purpose and objectives of a water rate study, the process for adopting rates, financial goals and legal requirements. He then provided an overview of the purpose for financial planning and policies including the District's current reserve policy and the advantages versus disadvantages of using debt financing to fund capital improvement projects. He also reviewed the evolution of water rate structures, pricing objectives, various types of rate structures, cost of service, and the process for implementation. Mr. Guar and staff then responded to related questions from the Board and members of the public. 6. ADJOURNMENT 6.1. The meeting was adjourned at 5:55 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Workshop Meeting Held January 31, 2017 at 4:00 p.m. 2 AGENDA REPORT Meeting Date: May 9, 2017 ITEM NO. 7.2 Subject: Minutes of Board of Directors Special Meeting Held February 13, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Description: Type: 2017-02-13 - Minutes - BOD (A).doc Minutes Minutes 1. 2. 3. 4. 2017 -XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Monday, February 13, 2017, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 CALL TO ORDER The February 13, 2017 Yorba Linda Water District Board of Directors Special Meeting was called to order by President Miller at 5:38 p.m. The meeting was held in the Board Room at the District's Administration Building located at 1717 East Miraloma Avenue in Placentia, California 92870. Rni 1 Cal 1 DIRECTORS PRESENT J. Wayne Miller, President Al Nederhood, Vice President (Arrived at 6:11 p.m.) Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP PUBLIC COMMENTS 1►•CTiO CLOSED SESSION STAFF PRESENT Marc Marcantonio, General Manager Gina Knight, HR/Risk and Safety Mgr Annie Alexander, Executive Asst The meeting was adjourned to Closed Session at 5:39 p.m. All Directors in attendance at this time were present. Also present were Messrs. Gagen and Marcantonio and Mrs. Knight. Vice President Nederhood joined the session at 6:11 p.m. 4.1. Conference with Legal Counsel — Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9 of the California Government Code Number of Potential Cases: One Minutes of the YLWD Board of Directors Special Meeting Held February 13, 2017 at 5:30 p.m. The Board reconvened in Open Session at 6:32 p.m. Mr. Gagen reported that no action was taken during Closed Session that was required to be reported under the Brown Act. 5. ADJOURNMENT 5.1. The meeting was adjourned at 6:33 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Special Meeting Held February 13, 2017 at 5:30 p.m. AGENDA REPORT Meeting Date: May 9, 2017 ITEM NO. 7.3 Subject: Minutes of Board of Directors Regular Meeting Held February 13, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Description: Type: 2017-02-13 - Minutes - BOD (B).doc Minutes Minutes 1. 3. 2. CI MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Monday, February 13, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 CALL TO ORDER President Miller called the meeting to order at 6:33 p.m. The following items were taken out of order. ROLL CALL DIRECTORS PRESENT J. Wayne Miller, President Al Nederhood, Vice President Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director 2017 -XXX STAFF PRESENT Marc Marcantonio, General Manager Steve Conklin, Engineering Manager John DeCriscio, Operations Manager Gina Knight, HR/Risk and Safety Manager Delia Lugo, Finance Manager Art Vega, Information Technology Manager Annie Alexander, Executive Assistant Malissa Muttaraid, Public Affairs Representative ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC Beth Haney, Councilmember, City of Yorba Linda Robert Porr, Senior Vice President, Fieldman Rolapp & Associates Cyrus Torabi, Attorney, Stradling Yocca Carlson & Rauth PLEDGE OF ALLEGIANCE President Miller led the pledge. ADDITIONS/DELETIONS TO THE AGENDA None. Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports Director Brett Barbre reported on the Governor's extension of the emergency drought declaration, Metropolitan's water storage efforts, current snow pack, and water supply conditions. He also presented a diagram of the Oroville Dam and reported on its current condition in light of recent flooding. He then responded to related questions from the Board and members of the public. Councilmember Beth Haney reported on the City's landscape transition plan for the Landscape Maintenance Assessment District and the community's response to a recent survey. 6. PUBLIC COMMENTS Dr. Jeff Decker, resident, distributed a handout regarding the District's financials and commented on historical revenue and expenses. 7. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Hall, to approve the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Regular Meeting held December 8, 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 $3,557,007.91. 8. ACTION CALENDAR 8.1. Authorizing the Issuance of Revenue Refunding Bonds, Series 2017A Mrs. Delia Lugo explained that the Board had previously requested to explore other financing options and that Mr. Robert Porr and Mr. Cyrus Torabi were in attendance to present this information. Mr. Porr provided an update of municipal market conditions and reviewed various refunding structures for the District's 2008 Certificates of Participation (COP) including revenue and lease revenue bonds, interim debt, variable rate demand obligations, and cash reserves. He also Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 2 provided an overview of three different refunding structures and associated net present value savings, rating agency concerns, sensitivity analysis of delaying the transaction until July, and financing timing options. Mr. Porr and staff then responded to questions from the Board regarding increasing the bond issuance amount to fund future capital improvement projects rather than utilizing reserves. Mr. Torabi stated that should the Board determine to add a new financing component, the resolution and associated bond documents would need to be modified and presented to the Board at a future meeting. Dr. Jeff Decker, resident, commented on the District's water rates, financials and reserves, and providing a customers with a refund. Mr. Ben Parker, resident, commented on his personal work experience with rating agencies, interest rates associated with short-term versus long- term debt, and various financing options. Mr. Greg Schultz, resident, commented on external factors that could impact the District's financial stability and his concerns with refunding administrative penalty revenue. Mrs. Julia Schultz, resident, commented on the District's water rates. Mrs. Cristy Parker, resident, commented on and suggested edits to various sections of the Preliminary Official Statement (POS). Mrs. Susan Decker, resident, commented on information contained in the handout previously distributed by Dr. Decker. Mr. Tom Lynch, resident, commented on the timing of the bond refunding in relation to adoption of the FY 2017/18 budget and Proposition 218 requirements. The Board further discussed the bond refunding structures and alternate financing options. Mr. Torabi indicated that the bond documents being presented were considered to be in "substantial form" and that any blanks would be completed at the time of pricing. He also noted that the Board would have an opportunity to review the final draft of the Official Statement and that if the District's savings did not meet the thresholds identified in the resolution, the General Manager would not be authorized to execute the Purchase Contract. Mr. Porr explained the relationship between bond pricing and yields. Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 3 The Board then discussed short and long term financing options, the bond refunding structures presented during the meeting, and the possibility of refunding the 2008 COP's and issuing additional bonds for the purpose of financing future capital improvement projects. Mr. Torabi explained that if the Board desired to restructure the refunding opportunity, separate documents would need to be drawn up for the additional bonds or the existing bond documents would need to be revised and brought back at a future meeting. Mrs. Lugo read staff's recommendation regarding this matter. In response to a question from Mrs. Parker (resident), Mr. Torabi explained that should the Board approve execution of the bond documents as presented in substantial form, this action would not preclude making minor edits such as those discussed during the meeting. The final draft of the Official Statement could be provided to the Board for review prior to going to market. Mr. Porr noted that material changes to the pro forma in the POS would need to be brought back to the Board for formal approval. Director Hawkins made a motion to adopt Resolution No. 17-02, authorizing the issuance of not to exceed $28,000,000 Refunding Revenue Bonds, Series 2017A, approving the execution of certain documents (pending edits to be completed by bond counsel) in connection therewith and certain other matters, and rescinding Resolution No. 16-17. Mrs. Lugo commented on disclosure requirements in relation to reserves and rates. Dr. Decker commented on rate increases, potential litigation, refunds for customers, and the POS. Directors Nederhood and Miller commented on the previous rate study, Proposition 218 hearing, and the POS. President Miller repeated Director Hawkins' motion to accept staff's recommendation, including the edits to the POS as discussed during the meeting, and suggested a dollar amount for the bond issuance. Director Hall stated that a dollar amount need not be specified and could be determined later after which he seconded the motion. Motion carried 5-0 on a Roll Call vote. Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 4 8.2. Revised Budgeted Positions for the Remainder of FY 2016/2017 Mrs. Gina Knight provided a historical overview of the previous Assistant General Manager (AGM) position and the legal requirements for pay schedules. She explained that staff was recommending the Board consider adding the AGM position to the District's budgeted positions for the purposes of succession planning. The vacant Communications Manager position could remain unfilled to help fund the AGM position through FY 2017/18. Mrs. Knight then described the duties to be assigned to the AGM and the estimated fiscal impact. Dr. Decker (resident) commented on comparative salaries for the public information officers and spoke against taking the proposed action at this time. Ms. Claudia Lynch, resident, commented on the recent election, proposed salary for the AGM, and reducing the District's expenses. The Board discussed the positions of AGM and Communications Manager. President Miller suggested that consideration of this matter be deferred to a future meeting. Mrs. Parker (resident) commented on expenses incurred for filling the position of Communications Manager. President Miller stated that the Board had asked Mr. Marcantonio to defer further recruitment efforts for this position at this time. Director Hall asked for clarification as to what discussion and/or action was being deferred. President Miller indicated that discussion and potential action related to both positions, AGM and Communications Manager, would be deferred in order to allow time for review of the organizational performance study conducted by Koff & Associates. 8.3. Ballot for Proposed Increased Assessment Affecting District Properties Located in Local Landscaping Zone L -2N of the City of Yorba Linda Street Lighting and Landscaping Maintenance District (LMAD) Mr. Marcantonio explained that the District had recently received a ballot for a proposed increased assessment affecting one parcel located in Zone L -2N of the LMAD. The proposed annual assessment amount is $235.64. Vice President Nederhood commented on the benefits of Director attendance at City Council meetings. Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 5 Director Nederhood made a motion, seconded by Director Hawkins, to vote in favor of the increased assessment for the parcel and authorize the General Manager to complete and submit the ballot as required. Motion carried 5-0. 9. DISCUSSION ITEMS 9.1. Status of Recruitment Process for Ad Hoc Citizens Advisory Committee (AHCAC) Mrs. Malissa Muttaraid reported she had received 16 applications for service on the AHCAC committee. She then provided an overview of the previous interview process and requested feedback from the Board in regards to the current recruitment. The Board discussed scheduling a special Board meeting in order to create an ad hoc committee to assist with the candidate selection process for the AHCAC. Ms. Lynch (resident) spoke against creation of an ad hoc committee as mentioned above and the importance of transparency. Mrs. Lugo reported on staff's efforts to obtain proposals for meeting facilitation services for the AHCAC. Vice President Nederhood suggested that staff obtain 2-3 proposals for the Board's consideration. Staff will work with the Board to schedule a special meeting for the purposes of determining the application review and candidate selection processes. 9.2. Rescheduling Regular Board Meeting on Wednesday, March 1, 2017 and Confirming Availability for Board Workshop Meeting on Thursday, March 16, 2017 The Board determined not to reschedule the Board meeting on March 1, 2017 and reschedule the Board workshop meeting to Tuesday, March 21, 2017 at 4:00 p.m. 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports The Directors reported on their attendance at the following events: ■ OCWD Field Headquarters Tour — January 26, 2017 (Nederhood/Jones) ■ OCWD GWRS Tour — February 1, 2017 (Nederhood/Jones) ■ MWDSC Local Infrastructure Tour — February 3, 2017 (Hall/Miller) Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 6 10.2. General Manager's Report Mr. Marcantonio asked each of the managers (or their designee) to report on activities within their respective departments. He then commented on the recent extension of the Governor's emergency drought declaration, his attendance at various events, and the importance of flushing sediment from the water distribution system. 10.3. General Counsel's Report rem 10.4. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) ■ Next meeting is scheduled March 23, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Nederhood) ■ Next meeting is 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 is yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1 OCSD Board — January 25, 2017 (Jones) 12.2 ISDOC — January 26, 2017 (Miller/Jones) 12.3. MWDOC Board — February 1, 2017 (Nederhood) 12.4. OCSD Operations Committee — February 1, 2017 (Hawkins) 12.5. OCWD Board — February 1, 2017 (Jones) Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 7 12.6. WACO — February 3, 2017 (Hawkins/Jones/Nederhood) 12.7. YL City Council — February 7, 2017 (Hall) 12.8. LAFCO — February 8, 2017 (Nederhood — As Needed) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from February 14, 2017 — April 30, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. MWDOC Water Policy Forum —March 30, 2017 Director Hawkins made a motion, seconded by Director Hall, to approve Director attendance at this event if desired. Motion carried 5-0. 15. ADJOURNMENT 15.1. The meeting was adjourned at 10:13 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held February 13, 2017 at 6:30 p.m. 8 Meeting Date: To: From: Presented By Prepared By: Subject: SUMMARY: AGENDA REPORT May 9, 2017 Board of Directors Marc Marcantonio, General Manager Budgeted: Cost Estimate: Funding Source: Delia Lugo, Finance Manager Dept: Richard Cabadas, Accounting Assistant I ITEM NO. 7.4 Yes $516,429.31 All Funds Finance Reviewed by Legal: N/A CEQA Compliance: N/A Payments of Bills, Refunds, and Wire Transfers 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 $516,429.31. DISCUSSION: The major items on this disbursement list are as follows: A check of $51,460.15 to the State Water Resources Control Board (SWRCB) for water system fees from 7/1/16 to 6/30/17. The balance of $190,411.43 is routine invoices. The Accounts Payable check register total is $241,871.58; Payroll No. 08 total is $274,557.73; and the disbursements of this agenda report are $516,429.31. 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 0509.pdf Cap Sheet Backup Material CkReg0509l7.pdf Check Register Backup Material 17 CC 0509.pdf Credit Card Summary Backup Material CHECK NUMBERS: Computer Checks TOTAL OF CHECKS PAYROLL NO. 08: May 09, 2017 69568-69639 $ 241,871.58 $ 241,871.58 Direct Deposits Third Party Checks 6658-6670 Payroll Taxes TOTAL OF PAYROLL $ 171,406.60 $ 53,047.63 $ 50,103.50 $ 274,557.73 $241,871.58 $274,557.73 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $516,429.31 ------------------------------------------------------------------ ------------------------------------------------------------------ APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MAY 09, 2017 ------------------------------------------------------------------ ------------------------------------------------------------------ Yorba Linda Water District Check Register For Checks Dated: 04/26/2017 thru 05/09/2017 Check No. Date Vendor Name Amount Description 69572 05/09/2017 ALISSA TARPLEY 231.36 CUSTOMER REFUND 69575 05/09/2017 Aramark 389.00 UNIFORM SERVICE 69576 05/09/2017 AT & T - Calnet3 3,365.75 ATT CALNET3 69577 05/09/2017 Bee Busters, Inc 125.00 BEE COLONY ABATEMENT 69578 05/09/2017 CalCard US Bank 25,071.49 CREDIT CARD TRANSACTIONS 69580 05/09/2017 California Department of Motor Vehicle 20.00 DOCUMENT REQUEST - SR19C 69579 05/09/2017 California United Bank 18,018.85 J10 -11B - RETENTION #04 - FAIRMONT PUMP STATION UPGRADE 69581 05/09/2017 CDW Government, Inc 159.69 APC REPLACEMENT BATTERY 69582 05/09/2017 Chambers Group Inc. 1,799.98 PROFESSIONAL SERVICES - MARCH 2017 69583 05/09/2017 City Of Placentia 1,519.50 (6) ENCROACHMENT PERMIT 69584 05/09/2017 Clinical Lab. Of San Bern. 2,945.00 WATER QUALITY - LAB SAMPLES 69585 05/09/2017 Dell Marketing L.P. 12,033.80 DESKTOPS, LAPTOPS AND NETWORKING EQUIPMENT 69586 05/09/2017 Delta Wye Electric, Inc. 1,053.04 SERVICE CALL - REPLACED FAULTY THERMAL OVERLOAD 69587 05/09/2017 Dion & Sons, Inc. 5,014.79 OIL - ALL STATIONARY ENGINES 69588 05/09/2017 Eisel Enterprises, Inc. 1,537.59 METER BOX, LIDS & COVERS 69589 05/09/2017 Elite Equipment Inc 180.32 HARDWARE SUPPLIES 69590 05/09/2017 Fairway Ford Sales, Inc. 49.51 VEHICLE REPLACEMENT PART - UNIT 197 69591 05/09/2017 Fieldman Rolapp & Associates 3,253.00 PROFESSIONAL SERVICES - MARCH 2017 69592 05/09/2017 Fry's Electronics 275.34 IT HARDWARE & CABLING 69593 05/09/2017 Gexpro 2,612.07 10 INCH QUICK PANEL 69594 05/09/2017 Graybar Electric Co 1,056.23 SEALED RECHARGEABLE BATTERY 69595 05/09/2017 Haaker Equipment Co. 42.07 VEHICLE MAINTEANCE - UNIT #210 69596 05/09/2017 Harrington Industrial 695.39 PUMP STATION REPAIR PARTS 69597 05/09/2017 Hushmand Associates Inc 13,318.00 PROF. SERVICES J10-11 B - FAIRMONT BPS & J14-23 - RICHFIELD RD 69598 05/09/2017 Infosend Inc. 5,550.57 POSTAGE BILLING - MONTHLY FEE 69600 05/09/2017 J & S Construction 23,226.00 CONCRETE REPAIR 69599 05/09/2017 Jackson's Auto Supply - Napa 752.39 VEHICLE MAINTENANCE - SEVERAL VEHICLES 69574 05/09/2017 JOSEPH KU 94.82 CUSTOMER REFUND 69601 05/09/2017 Ken Mendum 90.00 DWOCP - CERTIFICATE RENEWAL 69602 05/09/2017 Kimball Midwest 384.20 MECHANIC SHOP SUPPLIES 69604 05/09/2017 LPR-Laser Printer Repair Co 389.99 MAINTENANCE - RICO AFICIO PLOTTER 69605 05/09/2017 Managed Health Network 168.75 EAP MAY 2017 69606 05/09/2017 Marc Marcantonio 195.86 MILEAGE REIMBURSEMENT - MARCH 2017 69607 05/09/2017 Mc Fadden -Dale Hardware 655.96 TOOLS & HARDWARE SUPPLIES 69608 05/09/2017 Mc Master -Carr Supply Co. 18.56 SAFETY EQUIPMENT 69609 05/09/2017 Measurement Control Systems, Inc 238.89 MISCELLANEOUS WAREHOUSE PARTS 69610 05/09/2017 Mobile Industrial Supply 8.00 WELDING SUPPLIES 69611 05/09/2017 Muzak LLC 89.56 CUSTOMER MESSAGE/PHONE SERVICE - APRIL 2017 69570 05/09/2017 NATASHA HAMIDA 129.17 CUSTOMER REFUND 69612 05/09/2017 Nicholas A. Hollon 175.00 CWEA - CERTIFICATION REIMBURSEMENT 69613 05/09/2017 Nickey Kard Lock Inc 4,496.84 FUEL - 04/1/17 - 04/15/17 69614 05/09/2017 Northtown Company 517.41 EQUIPMENT MAINTENANCE - UNIT #E214 69615 05/09/2017 Office Solutions 42.18 OFFICE SUPPLIES 69616 05/09/2017 Orange County Register 102.40 OC REGISTER -M-F- 13 WEEKS 69621 05/09/2017 P.T.I. Sand & Gravel, Inc. 3,462.71 MATERIAL - +30 FILL SAND, 3/4" CL2 BASE & COLD MIX ASPHALT 69571 05/09/2017 PASCAL & LUDWIG CONSTRUCTORS 1,000.00 CUSTOMER REFUND 69617 05/09/2017 Pete's Road Service Inc 387.47 EQUIPMENT MAINTENANCE - UNIT #E-1 69619 05/09/2017 Powerstride Battery 95.51 BATTERY - UNIT #157 69620 05/09/2017 Praxair Distribution 873.93 STATIONARY MAINTENANCE 69622 05/09/2017 Quinn Company 753.41 WELL 18 - MAINTENANCE 69624 05/09/2017 R.E. Michel Company, LLC 67.62 AC PARTS & MATERIALS 69626 05/09/2017 Rachel Padilla/Petty Cash 214.78 PETTY CASH - 0041817 & 0042517 69623 05/09/2017 Rancho Dominguez Community 3,763.40 TRAILSIDE WATER LEAK 69573 05/09/2017 ROBERTSCHERER 135.95 CUSTOMER REFUND 69625 05/09/2017 South Coast AQMD 3,418.32 AQMD PERMIT 69628 05/09/2017 Stantec Consulting Services In 10,402.45 J10-11 B - PROF. SERVICES - FAIRMONT BPS 69627 05/09/2017 Stater Bros. Markets 60.55 MEETING SUPPLIES - LCW TRAINING 69629 05/09/2017 Step Saver Inc 322.62 COARSE SALT 69630 05/09/2017 Sunrise Medical Group 75.00 POST EMPLOYEE VACCINE 69631 05/09/2017 Switch Ltd 521.00 DATA HOSTING - COLOCATION 69632 05/09/2017 SWRCB 51,460.15 WATER SYSTEM FEES FOR 07/01/2016 TO 06/30/2017 69603 05/09/2017 The Lighthouse Inc. 115.99 36" LED LIGHT BAR - UNIT #214 69633 05/09/2017 Time Warner Cable 3,852.82 INTERNET ACCESS & INTER STATE COLOCATION 69634 05/09/2017 Townsend Public Affairs, Inc. 10,000.00 CONSULTING SERVICE - FEBRUARY & MARCH 2017 69635 05/09/2017 Underground Service Alert 357.00 DIGALERT - MARCH 2017 69568 05/09/2017 UNICORN REALTY 397.55 CUSTOMER REFUND 69636 05/09/2017 United Industries 1,736.92 PPE EQUIPMENT 69638 05/09/2017 United Water Works, Inc. 10,409.80 SEWER MAIN REPAIR PARTS & WAREHOUSE STOCK 69637 05/09/2017 UNUM Life Insurance Co. of America 3,560.62 LIFE, AD&D, STD, LTD - MAY 2017 69639 05/09/2017 Westside Building Material 358.81 MISCELLANEOUS WAREHOUSE PARTS 69618 05/09/2017 WinCan LLC 1,891.00 SUPPORT PLAN -ADVANCE ENTERPRISE 69569 05/09/2017 XIAO YANG 82.88 CUSTOMER REFUND 241,6/1.58 Payroll Checks #08 6658 04-20-2017 COLONIAL LIFE & ACCIDENT 128.30 6659 04-20-2017 FLEX ADVANTAGE 1,652.41 6660 04-20-2017 LINCOLN FINANCIAL GROUP 3,131.95 6661 04-20-2017 NATIONWIDE RETIREMENT SOLUTIONS 8,153.22 6662 04-20-2017 GARNISHMENT 231.00 6663 04-20-2017 CALIFORNIA STATE DISBURSEMENT UNIT 366.92 6664 04-20-2017 CALIFORNIA STATE DISBURSEMENT UNIT 339.69 6665 04-20-2017 CALIFORNIA STATE DISBURSEMENT UNIT 670.96 6666 04-20-2017 AMERICAN HERITAGE LIFE 1,616.53 6667 04-20-2017 MIDLAND LIFE INSURANCE 240.00 6668 04-20-2017 RELIANCE DI 47.54 6669 04-20-2017 AMERITAS 764.68 6670 04-20-2017 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYS] 35,704.43 53,047.63 Cal Card Credit Card U S Bank Vendor Name Amount Description Placentia Disposal 519.00 Waste service - (2) front loads - Richfield Rd Famous Daves 61.54 Travel Expense - NPELRA Conference - 2 attendees Hilton Long Beach 679.71 Travel Expense - NPELRA Conference City of Yorba Linda 125.00 Inspection fees - J2014-12 Online Information Services 891.11 Utility exchange reports Home Depot 162.91 Batteries and sod for landscape repair Home Depot 108.90 Replacement parts for Well #15 SCIE-ARMA 320.00 2017 Annual Spring RIM Seminar Konica Minolta Business 1,483.15 Monthly usage fee 12/14/16 - 03/13/17 NPELRA 175.00 Annual NPELRA membership - Lim, V South Coast AQMD 2,538.68 Permit for Emergency back up generator - J2010 -11B Fairmont BPS Verizon Wireless 3,262.54 Verizon wireless service for March 2017 CWEA 172.00 CWEA Membership renewal - Ostiz, M Calolympic 301.56 Testing & certification - Gas detectors Home Depot 96.76 Sod for landscape repair Keno's 35.00 Business meeting - 2 atteendees Hach Co. 124.41 Water hardness test kits KB Design 966.60 YLWD uniforms Mc Master Carr 313.91 Heavy duty steel platform truck Corona Rose Flowers 75.32 Get Well flower arrangement Monoprice 33.17 Cell phone supplies VMWare 1,495.00 Travel Expense - VMWorld Conference FTP Today 49.95 ylwd.ftptoday.com - storage Light Bulbs Etc. 27.56 Light bulb replacements Ferguson Enterprise 373.66 Repair parts for YLWD faucet The Home Depot (51.52) Credit - Hardware supplies Jet Blue 218.00 Travel Expense - Cityworks Conference Radisson Hotel Salt Lake 451.31 Travel Expense - Cityworks Conference West Coast Safety Supplies 144.96 Safety supplies Mandalay Bay Hotel & Resort 1,014.72 Travel Expense - DevCon Conference CanonUSA 199.78 District equipment The Fish Market 24.01 Travel Expense - ACWA Conference Hotel Indigo 82.00 Travel Expense - ACWA Conference Nara Sushi 30.00 Travel Expense - ACWA Conference Mandalay Bay Hotel & Resort 112.00 Travel Expense - DevCon Conference GFOA 435.00 GFOA Award application Stefanos Golden Baked Ham 73.35 Finance meeting - 4 attendees Safety Council 135.00 Safety training registration Equifax 24.95 Employment verification Wesco 58.31 Computer replacement parts Racksolutions 143.56 Server supplies 41mprint 349.70 Retractable badge holder Public Retirement Journal 380.00 Subscription registration Municipal Water Dept. OC 450.00 MWDOC conference registration Municipal Water Dept. OC (75.00) Credit - MWDOC conference registration American Waterworks 260.00 Maintenance parts - pressure washer A&R Floor Supply 49.63 Floor supplies Buckley Productions 55.37 Handbooks for DOT testing Shutterstock.com 2,559.00 SHUTTERSTOCK YEARLY SUBSCRIPTION Monoprice 96.66 Cell phone supplies CALPERS (235.00) Credit - Registration for Calpers education forum General Industrial System 960.00 Hard drives Harrington Industrial 554.67 CL2 replacement parts Staples 97.72 Printer supplies Staples 30.87 Office supplies CDW Government 1,915.00 IT- Computer equipment Safety Council 135.00 Safety training registration 25,071.49 Meeting Date: To: From: Presented By Prepared By: Subject: SUMMARY: AGENDA REPORT May 9, 2017 Board of Directors Marc Marcantonio, General Manager Steve Conklin, Engineering Manager Budgeted: Funding Source: Dept: Reviewed by Legal: Ricardo Hipolito Jr., Engineering CEQA Compliance: Tech II ITEM NO. 7.5 N/A N/A Engineering Yes N/A Declaration of Restrictive Covenants with Eric and Eileen Chang, 18721 Windy Knoll Drive, Yorba Linda The District has existing water and sewer mains located within a 50 foot wide recorded easement on a property located at 18721 Windy Knoll Drive, Yorba Linda. The property owners, Eric and Eileen Chang, propose to construct two concrete driveway approaches and landscaping within the District's water and sewer easement, as shown on the attached exhibit. Staff reviewed the request and recommends approval subject to the execution of a Declaration of Restrictive Covenants. STAFF RECOMMENDATION: That the Board of Directors authorize the President and Secretary to execute the Declaration of Restrictive Covenants with Eric and Eileen Chang. DISCUSSION: Property owners Eric and Eileen Chang propose to construct two concrete driveways that will encroach upon a dedicated 50 -foot wide District water and sewer easement at 18721 Windy knoll Drive, as shown on the attached exhibit. The new improvements also include low pilaster, planter areas with low garden walls and a 16 foot wide double gate and landscaping. Existing improvements include a retaining wall and block wall that were previously installed without a District approved Declaration of Restrictive Covenants. Staff reviewed the applicant's request and determined the improvements would have minimal impact on the operations and maintenance of the District facilities. To further protect the District's interest, staff recommends the execution of the attached Declaration of Restrictive Covenants, subject to approval as to form by General Counsel. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors authorized execution of similar Declaration of Restrictive Covenants with various developers and property owners. ATTACHMENTS: Name: DORC 18721 Windy Knoll Drive.pdf Description: Declaration of Restrictive Covenants - 18721 Windy Knoll Drive Type: Agreement Exhibit A.pdf Exhibit A - Declaration of Restrictive Covenants Exhibit RECORDING REQUESTED BY and when recorded return to: Yorba Linda Water District P.O. Box 309 Yorba Linda, California 92885-0309 This is to certify that this Declaration of Restrictive Covenants is presented for recording under the provisions of Gov. Code Sec. 27383 by the Yorba Linda Water District in performance of an official service thereof. Marc Marcantonio General Manaeer Space Above This Line for Recorder's Use DECLARATION OF RESTRICTIVE COVENANTS (ENCROACHMENT ON DISTRICT EASEMENT) THIS DECLARATION OF RESTRICTIVE COVENANTS ("Declaration") is made this 9th day of May, 2017 by and between YORBA LINDA WATER DISTRICT ("YLWD"), a public agency, created and operating under the authority of Division 12 of the California Water Code, and ERIC H. AND EILEEN M. CHANG ("Owner"), with reference to the following recitals of fact: RECITALS A. The Owner is the legal owner of that certain real property located at 18721 Windy Knoll Dr., Yorba Linda, California 92886 ("Subject Property"), which is more particularly described as follows: A PORTION OF LOT 2, BLOCK 23 OF THE YORBA LINDA TRACT AS SHOWN ON A MAP RECORDED IN BOOK 5, PAGES 17 AND 18 OF MISCELLANEOUS MAPS, RECORD OF ORANGE COUNTY, CALIFORNIA, MORE PARTICULAR DESCRIBED AS FOLLOWS: PARCEL 1 AS SHOWN ON RECORD SURVEY 50/26 RECORDS OF ORANGE COUNTY. B. YLWD owns an Easement, as identified on a Deed of Easement, recorded on November 30, 1960, in Book 5529, Pages 479 through 481, Official Records of Orange County, California ("Easement"), across a portion of the Subject Property. Within the Easement, YLWD owns and maintains an 8 -inch sewer main and 6 -inch water main pipelines ("District Facilities"). 1 C. The Owner desires to construct concrete driveways, planter areas with garden walls and low pilasters, a walkway, sixteen foot wide double gate, landscaping and related construction, and retain the existing retaining and block walls and wrought iron fence (collectively herein referred to as "Improvements") within and along the Easement area (hereinafter, "Encroachment"), as illustrated in Exhibit "A," attached hereto and incorporated by reference herewith. D. YLWD conditionally consents to Encroachment of the Improvements within and along the Easement area as stipulated in this Declaration. Owner is aware that the Improvements may lead to problems affecting and/or interfering with YLWD's use of the Easement. E. Although the construction of the Improvements or existence of walls, structures, and other improvements within and along the Easement area may interfere or restrict YLWD's Easement rights, the Owner wishes to construct and use the Improvements within or along the Easement area. NOW, THEREFORE, incorporating the above recitals, YLWD and Owner declare as follows: Covenant Running with Land. This Declaration constitutes a covenant running with the land as provided by the California Civil Code Section 1468 and shall benefit, burden, and bind the successive owners of the Subject Property and the Easement. 2. Successors and Assigns Bound. Since Owner wishes to retain the Encroachment, this Declaration obligates the current and future owners of the Subject Property to remedy any future adverse events and to fund any necessary maintenance costs on the Easement and/or Subject Property that may arise in full or in part due to the existence, construction, or damages caused by the Encroachment. 3. Damaees to District Facilities. Owner assumes full responsibility, liability and shall pay for any cost(s) or damage(s) to the District Facilities and appurtenant structures, arising from or related to the construction, existence, and/or use of the Improvements. YLWD shall not be responsible for any cost(s) or damage(s) to the District Facilities and appurtenant structures that arise from the Encroachment. 4. Damages to Third Parties. Owner, its successors or assigns, agrees to indemnify and hold YLWD, its officers, directors, employees, agents and consultants, harmless against any third PJ parry claims related to or arising out of the construction, existence and/or use of the Improvements. 5. Damages to Improvements. Owner acknowledges that the Improvements may be damaged or demolished to permit reasonable access to or reasonable work within and under the Easement area. YLWD, its officers, directors, employees, agents and consultants, shall not be responsible for any damage(s) to or because of the Improvements which results from YLWD's exercise of rights under the Easement. Owner, its successors or assigns, waives all known, unknown, and future claims, liabilities, causes of action, and expenses (including, but not limited to, attorneys' fees) against YLWD, its officers, directors, employees, agents and consultants, for losses and damages to the Improvement and from any obligation to protect, preserve, repair, or replace the Improvement. Construction, use, protection, repair and replacement of the Improvement shall be entirely the risk and obligation of Owner, its successors or assigns, even if damage is caused by YLWD. 6. Recording of Agreement. This Declaration shall be recorded in the Office of the Recorder of the County of Orange, California, and shall constitute notice to all successors and assigns of the title to the Subject Property of the rights and obligations set forth herein. 3 Approved as to Form: Kidman Law, LLP Arthur G. Kidman General Counsel 4 YORBA LINDA WATER DISTRICT J. Wayne Miller, Ph. D. President Marc Marcantonio Secretary OWNER: Eric H. Chang Eileen M. Chang e I , EX, 5' HT,RETAINING WALL EXISTING RESIDENCE •771o \\, \ 50 30' 11 Ld -----, I❑ \ 11 Q1 I e L ----_j❑ PROP. 1111 , W ' I e WALKWAY z EX, 5' HT. W.I. FENCE �� o z 1 ° TOP OF SLOPE I U 8 ' T o ° O J I o a °° 00 N N EX. WATER I PROP. CONCRETE EX. 6" WATER I PROPERTY LINE METER - - - CIRCULAR DRIVEWAY - - N PROP. LOW EX. 8" SEWER SMH PILASTER WINDY KNOLL DRIVE YLWD 50' WATER & � LOCATION MAP SEWER EASEMENT PREPARED BY: EXHIBIT "A" SCALE: NO SCALE YORBA LINDA WATER DISTRICT DECLARATION OF RESTRICTIVE COVENANTS DATE: FOR 0510912017 1717 E. MIRALOMA AVENUE 18721 WINDY KNOLL DRIVE PLACENTIA, CALIFORNIA 92870 YORBA LINDA, CA 92886 FILENAME: (714) 701-3000 E 5' CMU WALL PROPERTY LINE _ EX. 8" SEWER 50' WATER d SEWER EASEMENT - ° _ YLWD DEED NO. 209125 BOOK 5529 ❑ PAGES 479.481 NOVEMBER 30,1960 � � \ EX. 6" WATER GYM, &OFFICE \ �� ° \ 1 EX. 5' HT. BLOCK WALL • POOL A �o�� _ __ \ �f PROP, CONCRETE DRIVEWAY e L PROP, 16 FOOT WIDE DOUBLE GATE WITH 6' HT. PILASTER 1 � e L \ e I , EX, 5' HT,RETAINING WALL EXISTING RESIDENCE •771o \\, \ 50 30' 11 Ld -----, I❑ \ 11 Q1 I e L ----_j❑ PROP. 1111 , W ' I e WALKWAY z EX, 5' HT. W.I. FENCE �� o z 1 ° TOP OF SLOPE I U 8 ' T o ° O J I o a °° 00 N N EX. WATER I PROP. CONCRETE EX. 6" WATER I PROPERTY LINE METER - - - CIRCULAR DRIVEWAY - - N PROP. LOW EX. 8" SEWER SMH PILASTER WINDY KNOLL DRIVE YLWD 50' WATER & � LOCATION MAP SEWER EASEMENT PREPARED BY: EXHIBIT "A" SCALE: NO SCALE YORBA LINDA WATER DISTRICT DECLARATION OF RESTRICTIVE COVENANTS DATE: FOR 0510912017 1717 E. MIRALOMA AVENUE 18721 WINDY KNOLL DRIVE PLACENTIA, CALIFORNIA 92870 YORBA LINDA, CA 92886 FILENAME: (714) 701-3000 ITEM NO. 7.6 AGENDA REPORT Meeting Date: May 9, 2017 Budgeted: N/A To: Board of Directors Funding Source: Developer Funded From: Marc Marcantonio, General Account No: 2-2600 Manager Job No: 201714S Presented By: Steve Conklin, Engineering Dept: Engineering Manager Reviewed by Legal: N/A Prepared By: Ariel Bacani, Engineering CEQA Compliance: N/A Technician II Subject: Terms and Conditions for Sewer Service with Kurt Metcalf, 5041 Eureka Avenue, Yorba Linda SUMMARY: Mr. Kurt Metcalf requested to connect his home at 5041 Eureka Ave., Yorba Linda, to the public sewer system. The property is approximately 0.58 acres and is located within the District's Western Service Area. An exhibit depicting the project location is attached for your reference. STAFF RECOMMENDATION: That the Board of Directors approve the Terms and Conditions for Sewer Service with Kurt Metcalf, 5041 Eureka Avenue, Job No. 201714S. DISCUSSION: The proposed project is located in Drainage Area "2" within the District's Western Service Area. The District has an existing 8 -inch sewer main stub -out in Eureka Ave., north of Blair Dr.. Engineering staff is requiring a proposed sewer main extension length of approximately 95 ft., northerly along Eureka Ave., with a cleanout, in compliance with District Sewer Standards and Specifications. Mr. Metcalf has the option to either use an existing lateral stub -out or install a new lateral to his property. The Terms and Conditions for Sewer Service with Kurt Metcalf are attached for the Board's consideration. ATTACHMENTS: Name: 201714S T C.docx Description: Terms and Conditions 201714S Exhibit.pdf Exhibit Type: Agreement Exhibit YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR SEWER SERVICE NAME OF APPLICANT: KURT METCALF LOCATION OF PROJECT: 5041 EUREKA AVE., YORBA LINDA TRACT NUMBER: N/A JOB NUMBER: 201714S Date: MAY 9. 2017 LOT(S): 1 The applicant will be required to complete to the satisfaction of the District the following items that have an "X" following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) X The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 1 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. I. 4) The applicant shall provide to all purchasers of the homes a statement that the home is located within Improvement District No. 2 and that the home is subject to a property tax over and above the normal 1 % Basic Tax Levy to pay for Production, Storage, and Transmission water facilities serving Improvement District No. 2. 5) X The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 6) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. 7) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer Page 2 of 5 NAME OF APPLICANT: KURT METCALF LOCATION OF PROJECT: 5041 EUREKA AVE., YORBA LINDA (licensed prior to January 1, 1982) licensed to practice in the State of California. 8) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 9) The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. 10) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District's approval of the construction plans. 11) X The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 12) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 13) X The applicant shall provide per the District specifications one complete set of "As Built" mylars and electronic copy of ACAD drawings (version 2008 or later) for the Water and/or Sewer facilities. 14) The applicant shall complete an Application to and Agreement with the Yorba Linda Water District for Water Service. 15) The applicant shall pay all of the water fees as required by the Rules and Regulations for Water Service of the District. 16) The applicant shall pay meter fees associated with the installation of radio read meters for this project. 17) The applicant shall comply with the Rules and Regulations for Water Service of the Yorba Linda Water District. 18) The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. 19) The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan and the Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. Page 3 of 5 NAME OF APPLICANT: KURT METCALF LOCATION OF PROJECT: 5041 EUREKA AVE., YORBA LINDA 20) The applicant's engineer shall provide a computer hydraulic analysis report to confirm that the District's existing water system can accommodate the project. 21) The applicant's water facilities (on-site) shall be District owned and maintained. 22) The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. 23) The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 24) The applicant shall install _ water Sampling Station(s) in conformance with the District's Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 25) The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 26) The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 27) All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 28) The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 29) The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 30) The applicant shall adjust and raise to grade all valve covers within the limits of this project. 31) The applicant shall install a pressure regulator in all buildings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 32) The applicant shall complete a Temporary Water Permit for all water that will be used through the new water services to serve the new buildings. Page 4 of 5 NAME OF APPLICANT: KURT METCALF LOCATION OF PROJECT: 5041 EUREKA AVE., YORBA LINDA 33) The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 34) The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 35) The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly prior to the water meters being turned on for service. 36) The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. 37) The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District's Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross -Connections. 38) The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 39) X The applicant shall complete an Application to and Agreement with the Yorba Linda Water District for Sanitary Sewer Service. 40) X The applicant shall comply with the Rules and Regulations for Sewer Service of the Yorba Linda Water District. 41) X The applicant shall pay all of the sewer fees as required by the Rules and Regulations for Sewer Service of the District. 42) X The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and the Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 43) The applicant's engineer shall provide sewer flow calculations to confirm that the District's existing sewer system can accommodate the peak wastewater generation from the project. 44) X The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. Page 5 of 5 NAME OF APPLICANT: KURT METCALF LOCATION OF PROJECT: 5041 EUREKA AVE., YORBA LINDA 45) X The applicant's sewer facilities (on-site) shall be Privately owned and maintained. 46) X The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District's Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 47) X The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. 48) X The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. 49) X The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 50) X The applicant shall construct approximately 95 feet of new 6 -inch PVC sewer main with one terminal cleanout and an optional sewer lateral, per approved plans and District Specifications. I hereby certify that the foregoing Terms and Conditions were approved at the DATE Regular meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application To and Agreement with the Yorba Linda Water District for Water and/or Sewer Service is not executed for the project under consideration. Marc Marcantonio, General Manager 5039 LLJ Q Q I 'o W (x Wi \I EX. F.H. w EX. W.M. I Iwj, I I I 5041 EUREKA AVE. I OPTIONAL 4" SEWER LATERAL STUB -OUT 1 I EXISTING 4" SEWER LATERAL STUB -OUT EX. S.M.H. ------------- 5111 5011 PROP. 6" I , CLEANOUT r PROP. 6" SEWER n MAIN EXTENSION (APPROX. 95 L.F.) k I EXIST. 8" SEWER STUB -OUT .. w - -11 - BLAIR DRIVE 5112 SITE PLAN -r - - - - -j----------------------- I P/- I I �-P OJ CT 9 DLA IR BUENA V VICINITY MAP PREPARED BY: EXHIBIT SCALE: N.T.S. YORBA LINDA WATER DISTRICT PROPOSED SEWER MAIN EXTENSION DATE: El 1717 E. MIRALOMA AVENUE FOR 05-09-2017 PLACENTIA, CALIFORNIA 92870 5041 EUREKA AVE. FILENAME: (714) 701-3100 J -2017-14S AGENDA REPORT Meeting Date: May 9, 2017 ITEM NO. 8.1 Subject: District Investments Held with Safe Keeper/Custodial Agent Pershing LLC STAFF RECOMMENDATION: That the Board of Directors consider (1) retaining the District's non -trustee U.S. Government Sponsored Agency Securities and Certificates of Deposit investments with Pershing LLC as the safe keeper/custodial agent or (2) moving these investments to Bank of the West as the District's safe keeper/custodial agent. DISCUSSION: In an effort to be transparent, staff is again bringing to the Boards' attention the safe keeper/custodial relationship that exists with the District's Investments held at Pershing LLC. The District's Non -Trustee U.S. Government Sponsored Agency Securities and Certificates of Deposit are currently being held by Pershing and are in the District's name. However, the safe keeper/custodial agreement is between First Empire Securities (an authorized broker) and Pershing. Our auditors' (White Nelson Diehl Evans LLP), have commented their concern that the safe keeper/custodial agreement isn't directly between the District and Pershing. They consider this to be a significant deficiency of internal control as presented in the Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated September 30, 2016. The District could retain these investments with Pershing and the safe keeper/custodial agreement would remain between First Empire and Pershing. However, our auditors would once again report a significant deficiency of internal control by the District. Another option would be to transfer these investments from Pershing LLC to Bank of the West. Bank of the West would be the District's safe keeper/custodial agent. The safe keeper/custodial agreement would be between the District and Bank of the West. We would use authorized third party brokers to assist in the purchasing of investments and these investments would be retained with Bank of the West. This would prevent any further internal control findings in future audits on this matter while maintaining the safekeeping and third party relationship as prescribed in "Section 12: Safekeeping and Custody" of our Investment Policy. ATTACHMENTS: Name. Description: Type: WNDE Internal Control Report.pdf White Nelson Diehl Evans Internal Control Report Backup Material INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS The Board of Directors Yorba Linda Water District Placentia, California We have audited, in accordance with the auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the State Controller's Minimum Audit Requirements for California Special Districts the financial statements of the Yorba Linda Water District (the District) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District's basic financial statements and have issued our report thereon dated September 30, 2016. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District's financial statements will not be prevented, or detected and corrected on a timely basis. Asignificant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described below, that we consider to be a significant deficiency. -1- 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties Internal Control over Financial Reporting (Continued) Custodial Agreement over Certain Investments Auditors' Comment and Recommendation During our review of investments, we reviewed an account agreement between First Empire (the broker) and the District. The account agreement discussed the responsibilities of Pershing, and included the following, "Pershing will hold in custody securities and cash received for your account, and will collect and disburse dividends and interest and process reorganization and voting instructions with respect to securities held in custody. Pershing is responsible for the custody of your cash and securities only after it comes into Pershing's physical possession or control." During our confirmation procedures, Pershing was believed to be the custodian of the investments, and First Empire was believed to be the broker. This segregation would allow the investment purchases to be recommended by First Empire and the custody of the investments to be with Pershing. In the prior year confirmation, Pershing confirmed by letter that they act as the custodial agent for investments of the District. In addition, in the prior year confirmation, Pershing responded in writing that their internal records reflect the investments are owned by the District. However, in the prior year, Pershing did not respond in writing to our inquiry regarding if there was a custodial agreement for investments between the District and Pershing. In the current year, Pershing did not respond in writing to any of our inquiries. We were unable to confirm if the District has a custodial agreement with Pershing. We recommend the District review its relationship with Pershing. Management's Response District Staff will review and discuss the current "Account Agreement" that sets forth the responsibilities of First Empire and Pershing over Yorba Linda Water District's investments held in an active account with First Empire Securities, Inc. Upon completion of the review, District Staff will conference with representatives from both First Empire Securities, Inc. and Pershing LLC to determine if the terms and listed responsibilities as set forth in the "Account Agreement" can and will be satisfactorily adhered to for the needs and requirements of Yorba Linda Water District. District's Response to the Finding The District's response to the finding identified in our audit is described above. The District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. -2- Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Ljz- ILI� �faa LGA° Irvine, California September 30, 2016 -3- ITEM NO. 8.2 AGENDA REPORT Meeting Date: May 9, 2017 Subject: Rules and Regulations for Sewer Service STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 17-14 adopting Rules and Regulations for Sewer Service, and rescinding Resolution No. 16-16. DISCUSSION: Staff presents amended Rules and Regulations for Sewer Service for the Board of Director's consideration. The previously adopted Rules and Regulations for Sewer Service were adopted in 2016, per Resolution No. 16-16. Major recommended changes to the Rules and Regulations for Sewer Service include: . A new Section 3.4, calling -out requirements for properties to connect to a new sewer main along the entire frontage of the property, with clearly defined exceptions listed as a new Section 3.5. . A new Section 7.5, requiring design and construction of the public sewer main extension to include lateral stub -outs for neighboring properties. This includes a newly defined Section 1.30 term: "Sewer Lateral Stub -Out" Updates to the Rules and Regulations for Sewer Service were completed, primarily, to more clearly define exceptions to connecting to the public sewer. PRIOR RELEVANT BOARD ACTION(S): On August 11, 2016, the Board adopted Resolution No. 16-16, establishing the current sewer rules and regulations. ATTACHMENTS: NamE Description: Type: 1.0 RULES AND REGULATIONS SEWER Backup Material Backup Material Redlined May 2017.pdf Resolution No. 17-14 - Sewer Rules.docx Resolution Resolution 1.0 RULES AND REGULATIONS SEWER Backup Material Exhibit MAY 2017.pdf Yorba Linda Water District RULES AND REGULATIONS FOR SEWER SERVICE August 2016 Amended May 2017, as noted in underlined bold font. TABLE OF CONTENTS Section 1................................................................................. Definition of Terms Section 2.............................................................................Policy on Public Sewers Section 3.............................................................Policy on Private Sewerage Disposal Section4 ...................................................................................... Building Sewers Section 5................................................................................. Service Connections Section 6.....................................................................................Fees and Charges Section 7.......................................................Sewer Main Extension Application Policy Section 8....................................................................Frontage Charge Determination Section 9..........................................................................Sewer Assessment District Section 10................................Discharge of Certain Materials into Public Sewer Prohibited Section 11...........................................................................Protection from Damage Section 12.............................................................Powers and Authority of Inspectors Section13 ............................................................................................Violations Section14 ...............................................................................................Validity SECTION 1: DEFINITION OF TERMS Unless otherwise specifically defined herein, or unless the context requires a different meaning, all words, terms and phrases shall be construed according to their ordinary meaning. Unless the context specifically indicates otherwise, the meaning of terms used in these Rules and Regulations shall be as follows: 1.1 ADOPTED: Adopted by the Yorba Linda Water District Board of Directors. 1.2 APPLICANT: A person applying for public sewer service. 1.3 BOARD OF DIRECTORS or BOARD: The Board of Directors of the Yorba Linda Water District. 1.4 BUILDING SEWER: The extension from the building drain to the public House Sewer connection or other place of disposal. 1.5 BUILDING SEWER PERMIT: The permit issued by any governmental agency, other than the District, for installation of the building sewer. The building sewer permit does not include permission to connect to District public sewer facilities. 1.6 COMBINED SEWER: A sewer receiving both surface run off and sewerage. 1.7 CONTRACTOR: A person licensed by the State of California to construct public sewer mains. 1.8 CUSTOMER: An individual or Agency of record receiving public sewer service from the Yorba Linda Water District. 1.9 DISTRICT: The Yorba Linda Water District. 1.10 DISTRICT ENGINEER OR ENGINEER: The engineer of the District or their authorized agents, limited by the particular duties entrusted to them. 1.11 EASEMENT: A property right for the District to use and/or enter onto the real property of another to install, construct, reconstruct, remove, inspect, maintain, repair, replace, improve, relocate a pipeline or pipelines, or other District improvements. 1.12 FRONTAGE: The length of that side of the property to which service connection is made. 1.13 GARBAGE: The solid waste from the domestic and commercial preparation, cooking and dispensing of food, and from the handling, storage and sale of produce. 1. 14 GENERAL MANAGER: The person appointed by the Board of Directors of the District as the executive officer of the District. 1.15 INDUSTRIAL WASTE: The liquid waste from industrial manufacturing processes, trade, or business as distinct from public sewerage. 1.16 ORANGE COUNTY SANITATION DISTRICT (OCSD): The regional public agency that provides wastewater collection, treatment and disposal services for central and northwest Orange County, including Yorba Linda Water District. 1.17 NATURAL OUTLET: Any outlet into a water course, conduit, lake, or other body of surface or ground water. 1.18 PERSON: Any individual, firm, company, association, society, corporation, group, agent or agency. 1.19 PLANS: Detailed design sheets with plan and profile of proposed sewer construction shown in sufficient detail so that it can be constructed. 1.20 PREMISES: The integral property or area, including improvements thereon, to which public sewer service is or will be provided. 1.21 PRIVATE SEWER DISPOSAL SYSTEM: Includes septic tank system, cesspool, seepage pit, leach/drain field, or other sewer disposal system appurtenance(s). 1.22 PRONOUNS: Words used herein in the masculine gender include the feminine and neuter, and vice versa; the singular number includes the plural, and the plural the singular. 1.23 PUBLIC SEWER: authority wastewater collection and conveyance system owned and operated by the District. 1.24 SECTIONS: The parts into which these rules are divided. 1.25 SERVICE CONNECTION: The tapping connection to the public sewer, the pipe installed in the street or easement which extends from the public sewer to the property line in the case of streets or to the easement side line in the case of easements, and the connection to the building sewer, said connection being at the property line or easement side line. A sewer chimney shall be part of the service connection, and shall be the homeowner's responsibility to maintain: 1.26 SEWAGE: A combination of the water carried waste from residences, businesses, buildings, institutions, and industrial establishments, together with such ground, surface and storm waters as may be present. 1.27 SEWER CONNECTION PERMIT: The permit issued by the District for connection to District public sewer facilities. 1.28 SEWER MAIN EXTENSION: The additions to the public sewer required serving property not currently connected to the public sewer. 1.29 SEWER MAINS: Public sewer pipelines which are part of the public sewer. 1.30 SEWER LATERAL STUB -OUT: A small privately maintained sewer line that connects to the District's public sewer and extends to the public right-of-way, in accordance with District standards. 1.319 "SHALL": is mandatory, "May" is permissive. 1.32 SPECIFICATIONS: The Standard Plans and Specifications for the Construction of Sewers in the Yorba Linda Water District. 1.33-2 SUSPENDED SOLIDS: Solids that either float on the surface of, or in suspension in water, sewage, or other liquids, and which are removable by laboratory filtering. 1.34-3 TRUNK SEWER: A sewer main, the builder of which is eligible for reimbursements because the cost of construction exceeded the "average" expected cost of a sewer main to serve the property due to a larger diameter, greater depth or special routing, etc., is required by the District to meet the public sewer Master Plan. 1.354 UNDERGROUND SERVICE ALERT: "USA" is an information center that notifies its members of impending excavation at or near their underground installations. California law makes it mandatory for all those who plan to do any digging or excavating to inform a regional notification center such as USA at least two days in advance. USA can be contacted at 1-800-422-4133. SECTION 2: POLICY ON PUBLIC SEWERS 2.1 All residences and all other developments within the District boundaries shall connect to public sewers, as noted in Section 2 of this document. 2.2 It shall be deemed adverse to the public good for any person to place, deposit, or permit to be deposited in any unsanitary manner on any public or private property within the District or any area under the jurisdiction of the District, any human or animal excrement, hazardous material, garbage, or other objectionable wastes. 2.3 Except as hereinafter provided in Section 3 hereof, it shall be deemed adverse to the public good to construct or maintain any privy, privy vault, septic tank, cesspool, or other facility intended or used for the disposal of sewage. 2.4 The owner of all houses, buildings, or property used for human occupancy, employment, recreation, or other purposes, situated within the District and abutting on any street, alley, or right of way in which there is now located or may in the future be located a public sewer operated by the District, shall install suitable toilet facilities therein, and to connect such facilities directly to the public sewer pursuant with the intent of the District's sewer master plan and according to the provisions of these Rules and Regulations. 2.5 All applicants for public sewer service shall also comply with the Rules and Regulations of the Yorba Linda Water District with regard to the rendition of water service. 2.6 No unauthorized person shall uncover, make any connections to, or opening into, use, alter, or disturb any sewer mains or service connection pipeline without first obtaining an approved "Sewer Connection Permit" from the District. 2.7 The District may, from time to time, contract to provide for sewer services. Except as provided for in any adopted contract these Rules and Regulations shall apply. 2.8 Sewer service shall be provided in accordance with Resolution No. 06-04. 2.9 Customers shall install sewer improvements in accordance with the latest version of following District documents and in accordance with all laws, ordinances, rules and regulations pertaining to the conduct of the work: 1. Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities 2. Application to and Agreement with the Yorba Linda Water District for Sewer Service Yorba Linda Water District Terms and Conditions for Water and Sewer Service SECTION 3: PRIVATE SEWER DISPOSAL SYSTEMS PROHIBITED 3.1 Where a public sewer is not available under the provision of these Rules and Regulations, a building may be connected to a private sewer disposal system complying with the rules and regulations of the agency having jurisdiction over such disposal systems. 3.2 If a property has a septic system that was in place and operational before the construction of a public sewer fronting that property, and if that septic system continues to operate with no problems, that septic system may continue to serve that property until such a time that replacement is required according to Section 3.3 hereof. 3.3 A property is required to connect to the public sewer, (at the diser-etion of th when gravity flow to the public sewer is possible in accordance with the specifications and such public sewer is within 200 feet - at a distance measured from the sewer main terminus, parallel to the street or easement, and perpendicular into private sewer disposal system or building, whatever is closer to, when: 1. A private sewer disposal system is failing and must be rehabilitated, replaced or altered. 2. A private sewer disposal system is determined, by the City of Yorba Linda, to have insufficient capacity, as a result of any proposed building improvements and/or additions. 3. A property served by a private sewer disposal system is subdivided into two or more parcels. 4. PA -Proposed building improvements that include one or more bedrooms, or an existing building with a proposed bedroom addition. Orange County Sanitation District (OCSD) Ordinance Number OCSD-40 defines a bedroom addition as: "enclosed loft additions, bonus rooms that may be used as offices, workout rooms, media rooms or libraries, or any other additions, which could be potentially used as a bedroom." 3.4 If the nronerty falls within the conditions listed in Section 3.3, the nronerty shall connect to either the existing sewer main fronting the property or connect tom a new sewer main extension constructed alone the entire frontage of the property. (at the a;ser-et on of th )i4p ^+,^ Exceptions to constructing a new sewer main line extended alone the entire frontage of the property are listed in Section 3.5., as diseussed in Seetion 3.7 (on!4 3.5 Exceptions to constructing a new sewer main line extended alone the entire frontage: 1. If a private sewer disposal system fails and there is an existing public sewer (or private lateral) within 200 -feet or within their frontage, but the building pad elevation prevents_gravity flow to the public sewer (or private lateral), the owner may deliver sewage to the public sewer by use of a private sewer pump system. The sewer pump system shall consist of dual pumps with an alarm to notify of pump failure. The District shall have no responsibility to operate or maintain the private sewer pump system and shall not be liable for any damages resulting from a failure of the private sewer pumping, system to operate as intended. 2. When a property is at the end of an existing sewer main or a future sewer main line extension, with no possibility of extension beyond this property (examples include properties at the end of a terminal cul-de-sac, where it is not feasible to extend the sewer main) the customer may connect to the end of the sewer main line at the remote property boundary. 3. When the sewer master plan and current topography dictates that a future sewer main line extension is not feasible, the customer may connect to the end of the sewerline at the remote property boundary. 3.64 At such time as an existing approved private sewer disposal system fails, the property shall connect to the public sewer if the public sewer is available to the property according to these rules. The property owner shall apply for a direct connection public sewer in compliance with these Rules and Regulations; and any septic tanks, cesspools, and similar private sewerage disposal facilities, shall be abandoned and filled with suitable material in accordance with the rules and regulations of the agency having jurisdiction over such private sewerage disposal facilities. SECTION 4: BUILDING SEWERS 4.1 A building sewer permit and excavation permit shall be obtained from the appropriate public agency having jurisdiction prior to construction. 4.2 An applicant to connect to the public sewer shall be responsible for costs and expenses incident to the installation and connection of the building sewer. Applicant shall indemnify the District, and shall be fully responsible for all private plumbing, including the sewer lateral, up to the District's sewer main. 4.3 The building sewer shall conform to the requirements of the Building and Plumbing Code of the appropriate agency having jurisdiction. 4.6 The connection of the building sewer into the public sewer shall conform to the requirements of the Building and Plumbing Code and the District specifications. All such connections shall be made gastight and watertight. Any deviation from the prescribed procedures and materials must be approved by the District Engineer before the installation. 4.7 A sewer backflow prevention valve shall be installed on all sewer service connections where the upstream sewer manhole rim elevation is higher than the pad elevation of the structure desiring sewer service and shall conform to the requirements of the Building and Plumbing Code of the appropriate agency having jurisdiction. 4.8 The applicant for the building sewer permit shall notify the District when the building sewer is ready for inspection and connection to the public sewer. Connection shall be made under the supervision of the District Engineer or his representative. 4.9 All excavations for building sewer installations shall be adequately guarded with barricades and lights so as to protect the public from hazard. Streets, parkways, sidewalks, and other public property disturbed in the course of the work shall be restored in the manner satisfactory to the agency having jurisdiction. SECTION 5: SERVICE CONNECTIONS 5.1 Application for a service connection shall be made on an approved form furnished by the District. This application shall specify the size of service, the location and acreage of the property to be served, and the type of service. The information supplied by the applicant on such application shall be considered as authority and final. If any error in such application shall cause the installation of a service connection that is improper whether in size or location, the costs of all changes required shall be borne by the applicant. 5.2 All costs and expenses incident to the installation of the service connection shall be borne by the applicant. Applicant shall indemnify and hold the District, its Directors, officers and employees harmless from any loss or damage that may be directly or indirectly occasioned by the installation of the service connection. 5.3 All sewer service connections shall be installed by a contractor licensed by the State of California to construct sewer mains. 5.4 The service connection shall conform to the requirements of the Standard Plans and Specifications of the District. 5.5 A sewer backflow prevention valve shall be installed on all sewer service connections where the upstream sewer manhole rim elevation is higher than the pad elevation of the structure desiring sewer service and shall conform to the requirements of the Building and Plumbing Code of the appropriate agency having jurisdiction. 5.6 All service connections shall be made gastight and watertight. Any deviation from the prescribed procedures and materials must be approved by the District Engineer before the installation. 5.7 The applicant or their contractor shall notify Underground Service Alert (USA) at least 48 hours in advance of any digging or excavating. 5.8 The applicant for the Sewer Connection Permit shall notify the District when the service connection is ready for inspection and connection to the public sewer. Connection shall be made under the supervision of the District Engineer or his representative. 5.9 All excavations for service connections shall be adequately guarded so as to conform to OSHA requirements to protect the public from hazard. Streets, parkways, sidewalks, and other public property disturbed in the course of the work shall be restored in the manner satisfactory to the agency having jurisdiction. 5.10 When the proper application for public sewer service has been signed, a service connection permit has been issued; the charge for public sewer service shall begin. If water service and public sewer service are not required when the sewer service connection is installed, the applicant must order the water service be shut off and sealed to avoid the charge for public sewer service and when the service is required, he must make proper application for service. 5.11 Each house or building under separate ownership must be provided with its own service connection or connections. Two or more houses or buildings with one owner and on the same lot or parcel of land may be supplied through one service connection or a separate service connection may be installed for each building. 5.12 Two or more houses or buildings with one owner and on the same lot or parcel of land, with two or more separate potable water meters, may be supplied through one service connection or a separate service connection may be installed for each building; however, under this scenario, the customer shall be responsible for paying the current sewer rates for each individual house or building, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 5.13 The District reserves the right to limit the number of houses, buildings, or area of land with one owner to be supplied by one service connection. 5.14 When property provided with a service connection is subdivided, the service connection shall be considered as belonging to the lot or parcel of land which lies closest to the connection and the lot or parcel of land which lies farthest away from the connection will be required to obtain a new connection in accordance with these Rules and Regulations. 5.15 A service connection shall not be used to supply adjoining property of a different owner or to supply property of the same owner on opposite sides of a street or alley. 5.16 District approval is required prior to the installation or extension of a service connection across or through any private property. SECTION 6: FEES AND CHARGES 6.1 A service charge shall be imposed on a property within the District desiring to connect to or participate in the public sewer system shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.2 SERVICE CHARGE: A charge determined by multiplying area of the property (calculated to the nearest square foot and including that portion of the property to the centerline of all adjacent streets) by the Service Charge Rate for the particular Drainage Area in which the property is located, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. The Service Charge is a fee for use of trunk, sub - trunk, and principal lateral sewer mains. 6.3 FRONTAGE CHARGE: The frontage charge, as calculated in Section 8, shall be applicable to property which has not paid for an existing sewer main across the frontage of the property, or in some cases, extended to edge of their property. The frontage charge is determined to be the highest dollar amount of the following three calculated conditions: 6.3.1 A charge determined by multiplying the front footage of the property by the per linear foot Frontage Charge Rate, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. The front footage shall generally be based on the length of that side of the property to which service connection is made, including the distance to the centerline of adjacent cross streets, if any. 6.3.2 The refund amount calculated and determined by the District, for developer or District -installed public sewer facilities, if any. The Frontage Charge Rate shall be equal to the "final cost of installation of the street sewer main" as determined in Section 8.3.4 of these Rules and Regulations, divided by the "probable number of service connections to the on-site lateral sewer main" as determined in Section 8.4. 6.3.3 The minimum Frontage Charge Rate, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.4 ADMINISTRATIVE FEE: An Administrative Fee shall be imposed on a per job basis for each application for service. The Administrative Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.5 PLAN CHECK FEE: A Plan Check Fee shall be imposed on a per connection basis for each service connection identified in the application for service. The Plan Check fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.6 INSPECTION FEE: An Inspection Fee shall be imposed on a per connection basis for each service connection identified in the application for service. The Inspection Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.7 RECORDS AND BILLING FEE: A Records and Billing Fee shall be imposed on a per connection basis for each service connection identified in the application for service. The Records and Billing Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.8 SINGLE SERVICE FEE: A Single Service Fee shall be imposed on a service connection, to a single lot where the sewer main already exists and where, in the District's judgment, it is not necessary to process an application for service. The Single Service Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.9 GIS DATA CONVERSION FEE: A GIS Data Conversion Fee shall be imposed for each individual job, for each application and shall be pursuant to the latest adopted Water Development and Customer Service Fees Resolution. 6.10 SEWER METERS: Under special circumstances, at the discretion of the District, sewer effluent may be metered and the applicant for such public sewer service shall pay to the District the cost of the installation and the cost of such metering device as may be required by the District. All such metering devices shall be read monthly and the customer shall be billed monthly for the public sewer service at the effluent discharge rate pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. Any applicant for such public sewer service, in lieu of compliance with requirements of an effluent metering device as provided in Section 6. 10, may elect to pay for such public sewer service at the effluent discharge rate as applied to the quantity of water measured by the water meter provided for such property to be billed at the time of billing by the District for such water service, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.11 MONTHLY SEWER MAINTENANCE CHARGE: All residential single family homes, residential multiple unit dwellings and commercial/industrial customers shall pay a monthly sewer maintenance charge pursuant to the latest adopted Resolution Setting Sewer Rates. A Maintenance Charge shall be affixed against all water service connections within the District's boundary that are also connected to the District sewer system. The charge affixed shall be collected as a part of the water bill for those customers that receive water service from the District. For customers that are connected to the District sewer system and do not receive water service from the District, the sewer maintenance charge will be collected by billing on the County property tax bill for the property receiving sewer service. For all customers, the rate shall be pursuant to the latest adopted Sewer Maintenance Charge Resolution. 6.12 FEES, CHARGES AND EASEMENTS: Prior to the General Manager, or designee assigned by the General Manager, signing the Improvement Plans or approving an application for sewer service, the applicant shall dedicate all easements deemed necessary by the District and pay to the District all fees in the amount set forth herein. Non -District improvements (permanent, temporary or mobile) are not permitted within easement area, for all other sewer customers in this category who use water meter reading, the rate shall be pursuant to the latest adopted Sewer Maintenance Charge Resolution. SECTION 7: SEWER MAIN EXTENSION APPLICATION POLICY 7.1 Any applicant, who as owner or sub -divider of a single lot, subdivision, or tract of land, shall construct sanitary sewer facilities, to such lot, subdivision or tract of land, in accordance with these Rules and Regulations and the latest adopted District's Sewer Master Plan and, shall file a written application with District. 7.2 An individual may file an application, or two or more persons may join in an application for the extension of public sewer mains. 7.3 The application shall include, in addition to the information required in Section 5. 1, the proposed or desired location of public sewer mains and other pertinent engineering data so as to enable the District to determine the conformance of the proposed public sewer main extension with the Standard Plans and Specifications of the District. 7.4 All extensions of public sewer mains shall require Terms and Conditions approved by the Board of Directors, and plans and specifications approved by the General Manager and the District Engineer. 7.5 The en2ineerin2 design and construction of the public sewer main extension shall include sewer lateral* stub -outs for nei2hborin2 properties fronting the extension. 7.56 If and when said applicant has complied with all requirements of the District, including the payment of all fees required in Section 6 and the posting of a Guarantee Bond, and such other provisions of the subdivision ordinance or ordinances dealing with public improvements as may be applicable, the District shall approve construction of the sewer main extension. 7.67 The applicant for the sewer main extension shall notify the District at least two working days prior to the start of construction of the sewer main extension. Construction shall be done under the inspection of the District Engineer or his representative. T-78 It is the District policy not to make a direct frontage charge against any property owner or owners for easements which have previously been acquired by or for the benefit of the District from said property owner or owners for extension of the District's facilities. 7.59 Refer to Section 5 for additional conditions. SECTION 8: FRONTAGE CHARGE DETERMINATION 8.1 All property within the District for which application is made for public sewer service from a street sewer main, which main can provide public sewer service to property in addition to the property described in the application for such public sewer service shall pay an Administration Fee, Records and Billing Fee, Plan Check Fee, Inspection Fee and service charges as identified in Section 6, pursuant to the Sewer Development and Processing Fees Resolution. 8.2 FRONTAGE CHARGE: A charge equal to the "final cost of installation of the on-site lateral sewer main" as determined in Section 8.3.4 of these Rules and Regulations, divided by the "probable number of service connections to the on-site lateral sewer main" as determined in Section 8.4, but not less than the Frontage Charge as described in Section 6, pursuant to the Sewer Development and Processing Fees Resolution. 8.3 All applicants who desire public sewer service to property within the District or who must construct, at the expense of the applicant, on-site lateral sewer mains which can provide public sewer service to property in addition to that property described in the application for public sewer service to such property, shall enter into an agreement with the District which provides as follows: 8.3.1 That applicant shall have installed, in accordance with these Rules and Regulations, and Standard Plans and Specifications of the District, those public sewer facilities required to provide service to the property described in such application. 8.3.2 That the cost of said installation shall be paid by the applicant, and shall include the cost of engineering, the sewer contractor's invoice cost, the land acquisition and legal cost, and the plan check and inspection charges paid by applicant in connection with said installation. 8.3.3 That the applicant shall report such cost of said installation to the District in a form approved by the District and all items of such cost of installation thus reported shall be supported by invoices or statements verified to the satisfaction of the District. 8.3.4 That the "final cost of installation of the street sewer main" shall be the cost of said installation as verified by the District plus an allowance for the overhead of the applicant as determined by the Board of Directors of the District, but not to exceed 15% of the cost of said construction. 8.3.5 That the applicant shall transfer title of said public sewer facilities to the District in accordance with these Rules and Regulations. 8.4 In the event the cost of said installation exceeds the Frontage Charge, said excess amount shall be subject to a refund contract between the District and the applicant. The refund contract shall provide as follows: 8.4.1 That the District shall collect Frontage Charges from all properties later connecting to on-site lateral sewer main, and said frontage charges shall be paid to those parties entitled to refunds pursuant to these Rules and Regulations. 8.4.2 That such refunds shall be paid from the frontage charges collected by the District without interest; and that if the District fails to charge and collect said sums, the District shall make such refunds from other District funds. 8.4.3 That the District shall calculate and determine the amount of such refund as follows: 1. The District shall determine the probable number of service connections which will be made to the on-site lateral sewer main. This number shall not include those connections which, though possible, are doubtful at the time of application. 2. In the event the actual number of service connections to said on-site lateral sewer main exceeds such probable number of service connections to said on-site lateral sewer main, the frontage charge shall be determined by the following formula: F=T/N. Where F is the Frontage Charge; T is the final cost of installation; N is the actual number of service connections including the connection for which the frontage charge is to be determined. 3. All sums collected with respect to a particular on-site lateral sewer main shall be paid only to the applicant who was required to construct said on-site lateral sewer main until such time as all of such refunds to which said applicant is entitled hereunder have been paid. 4. All right to such refunds and all duty of the District to collect such frontage charges with which to pay such refunds hereunder shall terminate on the date thirty (30) years after the date on which the application for service is dated. 8.4.4 In the event the actual number of service connections to said on-site lateral sewer main exceeds the probable number of service connections to said on-site lateral sewer main refunds shall be made as follows: 8.4.4.1 The amount of refund shall be determined in accordance with the following formula: R = F/(N-1). Where R is the amount of the refund per connection; F is the Frontage Charge; N is the actual number of service connections including the connection for which the frontage charge was collected. 8.4.4.2 Such refund shall be made to the applicant who had installed the on-site lateral sewer main for the property owned at the time of installation and refund shall be made to the owner of the real property at the time of refund for any other real property which obtained public sewer service from said on-site lateral sewer main after the time of installation. 8.4.4.3 The term "on-site lateral sewer main", as used in these Rules and Regulations of the District shall mean a sewer main that has not been established by the District as a trunk sewer, sub -trunk sewer, or principal lateral sewer main. SECTION 9: SEWER ASSESSMENT DISTRICT 9.1 The District recognizes that there are certain areas within the District that, because of location, topography or size of parcels, have been unable to take advantage of public sewers as has the majority of the District and have therefore remained undeveloped and have not contributed proportionately to the financial growth and strength of the District. The District will examine these cases at the request of the proponents and make findings as to whether or not the District chooses to participate in financing construction of trunk sewer facilities. If, in the Board of Directors opinion, it is advantageous for the District to participate financially in trunk construction the Board may, at its discretion, choose to do so in accordance with Section 9 of these Rules and Regulations. 9.2 A preliminary feasibility report shall be prepared for areas capable of public sewer service from a common line whose proponents desire to have the District participate in the financing. If the area requesting participation is at least 15 acres or larger, whether contiguous or not, proponents shall prepare the preliminary study, or may request the General Manger to prepare such preliminary report. If the area is less than 15 acres, whether contiguous or not, the proponents may request the General Manager to undertake a preliminary study and if the Board determines that the proposal has sufficient merit it may authorize the General Manager to cause such study to be prepared. 9.3 Upon the receipt of a preliminary report, the Board shall appropriately notify the proponents and permit them an opportunity to comment thereon. The Board may thereafter approve and adopt said preliminary report and authorize the District's financial participation in the project upon the following general conditions: 9.3.1 That the District will be the contracting agency for approval of the plans and specifications, advertising for bids, receipt of bids, award of contract, supervision of contract, construction inspection and final acceptance. 9.3.2 That all funds to be contributed by any participants, other than District, shall be deposited with the District in full prior to award of any construction contract. The Board will require payment of all fees for Plan Check and Inspection. 9.3.3 That all refund monies to which the project might be entitled, by priority or otherwise, are irrevocably assigned to the District until the District has been refunded in full for all its monies advanced or charges owed by said project. Thereafter, any refund monies shall be paid to those entitled thereto pursuant to these Rules and Regulations. 9.3.4 In addition to a charge of five per cent (5%) of the total project cost for overhead and office work, the project shall pay to the District an interest charge on the District's contributions to the project equal to the cost of such money, or equivalent money, to the District. There shall also be collected a pro -rated sum for the cost of any general engineering, aerial survey, mapping, or other work which the District may have done to assist the promotion of this project. 9.3.5 That the proponents will contribute a sum per acre pursuant to the Sewer Development and Processing Fees Resolution, for each acre of property they are including within the project for offsite public sewer trunk improvements. The District's participation shall not exceed fifty per cent (50%) of the total project cost without a specific finding by the Board as to the general benefit to the District of such higher participation. 9.4 Upon the approval and adoption of a project, the Board may undertake its completion as called for in a contract or contracts entered into for such purpose. The General Manager is hereby directed upon such approval, to notify all other property owners, as they appear on the last equalized assessment roll, potentially benefiting by such project, of its adoption and inviting them to participate. No delay in the accomplishment of a project is contemplated by late participants. SECTION 10: DISCHARGE OF CERTAIN MATERIALS INTO PUBLIC SEWER PROHIBITED 10.1 Discharge into public sewer shall be in accordance with the latest adopted Ordinance of the Board of Directors of Orange County Sanitation District Establishing Wastewater Discharge Regulations. 10.2 Fats, Oils and Grease Control regulation shall be in accordance with the latest adopted District Ordinance for Fats, Oils and Grease Control Regulations, as applicable to food service establishments. 10.3 The customer is responsible for maintaining and repairing, at their own expense, the entire connection line from the building or proposed building to the main line in the street. If sewer leakage actually, or potentially, creates a public health hazard, and the customer does not pursue repairs, the District, at its discretion, may repair or have repaired the customer's portion of the connection line; the District will, in turn, bill the responsible party or agent for the property of said connection line for the cost of the repair, maintenance or cleaning plus 20% of the invoice amount for administrative staff time, oversight of the repair, maintenance or cleaning work and staff time to process billing to the customer. SECTION 11: PROTECTION FROM DAMAGE 11.1 No unauthorized person shall maliciously, willfully, or negligently remove, change, disturb, break, damage, destroy, uncover, deface, or in any way tamper, or interfere with any facility, apparatus, appliance, property, structure, appurtenance, or equipment which is used or maintained as a part of the sewerage works. Any person violating this provision shall be subject to arrest and prosecution. SECTION 12: POWERS AND AUTHORITY OF INSPECTORS 12.1 The General Manager and other duly authorized employees of the District, bearing proper credentials and identification, shall enter premises for the purposes of inspection, observations, measurement, sampling and testing in accordance with the provisions of these Rules and Regulations, provided that the property owner, or their designated representative, provides an invitation to enter premises. 12.2 The General Manager and other duly authorized employees of the District, bearing proper credentials and identification, shall be permitted to enter all private properties through which the District holds a duly negotiated easement for the purposes of, but not limited to, inspection, observation, measurement, sampling repair and maintenance of any portion of the sewerage works lying within said easement shall be done in full accordance with the terms of the duly negotiated easement pertaining to the private property involved. 12.3 An official District issued identification card shall be carried by all District employees, and shall be available upon request of property owner or their designated representative, if District employee is required to enter private premises. SECTION 13: VIOLATIONS 13.1 Any person found to be violating any provision of these Rules and Regulations shall be served by the District with written notice stating the nature of the violation and providing a reasonable time limit for the satisfactory correction thereof. The offender shall, within the period of time stated in such notice, permanently cease all violations. 13.2 Any person who shall continue any violation beyond the time limit provided for shall have their water service subject to discontinuance. Reinstatement of water service shall be made only on correction of the violation and payment of all applicable fees. 13.3 Any person violating any of the provisions of these Rules shall become liable to the District for any expense, loss, or damage occasioned by the District by reason of such violation. SECTION 14: VALIDITY 14.1 The invalidity of any section, sentence, clause or provision of these rules shall not affect the validity of any other part of these rules which can be given effect without such invalid part. RESOLUTION NO. 17-14 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE RULES AND REGULATIONS FOR SEWER SERVICE AND RESCINDING RESOLUTION NO. 16-16 WHEREAS, the Board of Directors have, from time to time, amended the Rules and Regulations for sewer service, most recently of which was by Resolution No. 16-16; and WHEREAS, it is the desire of the Board of Directors to amend these Rules and Regulations to reflect current practice. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That the Rules and Regulations for Sewer Service, attached as Exhibit A and by this reference incorporated herein, are hereby adopted. Section 2. That Resolution No. 16-16 is hereby rescinded and this resolution shall take effect immediately. PASSED AND ADOPTED this 9th day of May 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 Resolution No. 17-14 Adopting the Rules and Regulations for Sewer Service Yorba Linda Water District RULES AND REGULATIONS FOR SEWER SERVICE May 2017 TABLE OF CONTENTS Section 1................................................................................. Definition of Terms Section 2.............................................................................Policy on Public Sewers Section 3.............................................................Policy on Private Sewerage Disposal Section4 ...................................................................................... Building Sewers Section 5................................................................................. Service Connections Section 6.....................................................................................Fees and Charges Section 7.......................................................Sewer Main Extension Application Policy Section 8....................................................................Frontage Charge Determination Section 9..........................................................................Sewer Assessment District Section 10................................Discharge of Certain Materials into Public Sewer Prohibited Section 11...........................................................................Protection from Damage Section 12.............................................................Powers and Authority of Inspectors Section13 ............................................................................................Violations Section14 ...............................................................................................Validity SECTION 1: DEFINITION OF TERMS Unless otherwise specifically defined herein, or unless the context requires a different meaning, all words, terms and phrases shall be construed according to their ordinary meaning. Unless the context specifically indicates otherwise, the meaning of terms used in these Rules and Regulations shall be as follows: 1.1 ADOPTED: Adopted by the Yorba Linda Water District Board of Directors. 1.2 APPLICANT: A person applying for public sewer service. 1.3 BOARD OF DIRECTORS or BOARD: The Board of Directors of the Yorba Linda Water District. 1.4 BUILDING SEWER: The extension from the building drain to the public House Sewer connection or other place of disposal. 1.5 BUILDING SEWER PERMIT: The permit issued by any governmental agency, other than the District, for installation of the building sewer. The building sewer permit does not include permission to connect to District public sewer facilities. 1.6 COMBINED SEWER: A sewer receiving both surface run off and sewerage. 1.7 CONTRACTOR: A person licensed by the State of California to construct public sewer mains. 1.8 CUSTOMER: An individual or Agency of record receiving public sewer service from the Yorba Linda Water District. 1.9 DISTRICT: The Yorba Linda Water District. 1.10 DISTRICT ENGINEER OR ENGINEER: The engineer of the District or their authorized agents, limited by the particular duties entrusted to them. 1.11 EASEMENT: A property right for the District to use and/or enter onto the real property of another to install, construct, reconstruct, remove, inspect, maintain, repair, replace, improve, relocate a pipeline or pipelines, or other District improvements. 1.12 FRONTAGE: The length of that side of the property to which service connection is made. 1.13 GARBAGE: The solid waste from the domestic and commercial preparation, cooking and dispensing of food, and from the handling, storage and sale of produce. 1.14 GENERAL MANAGER: The person appointed by the Board of Directors of the District as the executive officer of the District. 1. 15 INDUSTRIAL WASTE: The liquid waste from industrial manufacturing processes, trade, or business as distinct from public sewerage. 1.16 ORANGE COUNTY SANITATION DISTRICT (OCSD): The regional public agency that provides wastewater collection, treatment and disposal services for central and northwest Orange County, including Yorba Linda Water District. 1.17 NATURAL OUTLET: Any outlet into a water course, conduit, lake, or other body of surface or ground water. 1.18 PERSON: Any individual, firm, company, association, society, corporation, group, agent or agency. 1.19 PLANS: Detailed design sheets with plan and profile of proposed sewer construction shown in sufficient detail so that it can be constructed. 1.20 PREMISES: The integral property or area, including improvements thereon, to which public sewer service is or will be provided. 1.21 PRIVATE SEWER DISPOSAL SYSTEM: Includes septic tank system, cesspool, seepage pit, leach/drain field, or other sewer disposal system appurtenance(s). 1.22 PRONOUNS: Words used herein in the masculine gender include the feminine and neuter, and vice versa; the singular number includes the plural, and the plural the singular. 1.23 PUBLIC SEWER: authority wastewater collection and conveyance system owned and operated by the District. 1.24 SECTIONS: The parts into which these rules are divided. 1.25 SERVICE CONNECTION: The tapping connection to the public sewer, the pipe installed in the street or easement which extends from the public sewer to the property line in the case of streets or to the easement side line in the case of easements, and the connection to the building sewer, said connection being at the property line or easement side line. A sewer chimney shall be part of the service connection, and shall be the homeowner's responsibility to maintain. 1.26 SEWAGE: A combination of the water carried waste from residences, businesses, buildings, institutions, and industrial establishments, together with such ground, surface and storm waters as may be present. 1.27 SEWER CONNECTION PERMIT: The permit issued by the District for connection to District public sewer facilities. 1.28 SEWER MAIN EXTENSION: The additions to the public sewer required serving property not currently connected to the public sewer. 1.29 SEWER MAINS: Public sewer pipelines which are part of the public sewer. 1.30 SEWER LATERAL STUB -OUT: A small privately maintained sewer line that connects to the District's public sewer and extends to the public right-of-way, in accordance with District standards. 1.31 "SHALL": is mandatory, "May" is permissive. 1.32 SPECIFICATIONS: The Standard Plans and Specifications for the Construction of Sewers in the Yorba Linda Water District. 1.33 SUSPENDED SOLIDS: Solids that either float on the surface of, or in suspension in water, sewage, or other liquids, and which are removable by laboratory filtering. 1.34 TRUNK SEWER: A sewer main, the builder of which is eligible for reimbursements because the cost of construction exceeded the "average" expected cost of a sewer main to serve the property due to a larger diameter, greater depth or special routing, etc., is required by the District to meet the public sewer Master Plan. 1.35 UNDERGROUND SERVICE ALERT: "USA" is an information center that notifies its members of impending excavation at or near their underground installations. California law makes it mandatory for all those who plan to do any digging or excavating to inform a regional notification center such as USA at least two days in advance. USA can be contacted at 1-800-422-4133. SECTION 2: POLICY ON PUBLIC SEWERS 2.1 All residences and all other developments within the District boundaries shall connect to public sewers, as noted in Section 2 of this document. 2.2 It shall be deemed adverse to the public good for any person to place, deposit, or permit to be deposited in any unsanitary manner on any public or private property within the District or any area under the jurisdiction of the District, any human or animal excrement, hazardous material, garbage, or other objectionable wastes. 2.3 Except as hereinafter provided in Section 3 hereof, it shall be deemed adverse to the public good to construct or maintain any privy, privy vault, septic tank, cesspool, or other facility intended or used for the disposal of sewage. 2.4 The owner of all houses, buildings, or property used for human occupancy, employment, recreation, or other purposes, situated within the District and abutting on any street, alley, or right of way in which there is now located or may in the future be located a public sewer operated by the District, shall install suitable toilet facilities therein, and to connect such facilities directly to the public sewer pursuant with the intent of the District's sewer master plan and according to the provisions of these Rules and Regulations. 2.5 All applicants for public sewer service shall also comply with the Rules and Regulations of the Yorba Linda Water District with regard to the rendition of water service. 2.6 No unauthorized person shall uncover, make any connections to, or opening into, use, alter, or disturb any sewer mains or service connection pipeline without first obtaining an approved "Sewer Connection Permit" from the District. 2.7 The District may, from time to time, contract to provide for sewer services. Except as provided for in any adopted contract these Rules and Regulations shall apply. 2.8 Sewer service shall be provided in accordance with Resolution No. 06-04. 2.9 Customers shall install sewer improvements in accordance with the latest version of following District documents and in accordance with all laws, ordinances, rules and regulations pertaining to the conduct of the work: 1. Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities 2. Application to and Agreement with the Yorba Linda Water District for Sewer Service Yorba Linda Water District Terms and Conditions for Water and Sewer Service SECTION 3: PRIVATE SEWER DISPOSAL SYSTEMS PROHIBITED 3.1 Where a public sewer is not available under the provision of these Rules and Regulations, a building may be connected to a private sewer disposal system complying with the rules and regulations of the agency having jurisdiction over such disposal systems. 3.2 If a property has a septic system that was in place and operational before the construction of a public sewer fronting that property, and if that septic system continues to operate with no problems, that septic system may continue to serve that property until such a time that replacement is required according to Section 3.3 hereof. 3.3 A property is required to connect to the public sewer, when gravity flow to the public sewer is possible in accordance with the specifications and such public sewer is within 200 feet - at a distance measured from the sewer main terminus, parallel to the street or easement, and perpendicular into private sewer disposal system or building, whatever is closer to, when: 1. A private sewer disposal system is failing and must be rehabilitated, replaced or altered. 2. A private sewer disposal system is determined, by the City of Yorba Linda, to have insufficient capacity, as a result of any proposed building improvements and/or additions 3. A property served by a private sewer disposal system is subdivided into two or more parcels. 4. Proposed building improvements that include one or more bedrooms, or an existing building with a proposed bedroom addition. Orange County Sanitation District (OCSD) Ordinance Number OCSD-40 defines a bedroom addition as: "enclosed loft additions, bonus rooms that may be used as offices, workout rooms, media rooms or libraries, or any other additions, which could be potentially used as a bedroom." 3.4 If the property falls within the conditions listed in Section 3.3, the property shall connect to either the existing sewer main fronting the property or connect to a new sewer main extension constructed along the entire frontage of the property. Exceptions to constructing a new sewer main line extended along the entire frontage of the property are listed in Section 3.5. 3.5 Exceptions to constructing a new sewer main line extended along the entire frontage: 1. If a private sewer disposal system fails and there is an existing public sewer (or private lateral) within 200 -feet or within their frontage, but the building pad elevation prevents gravity flow to the public sewer (or private lateral), the owner may deliver sewage to the public sewer by use of a private sewer pump system. The sewer pump system shall consist of dual pumps with an alarm to notify of pump failure. The District shall have no responsibility to operate or maintain the private sewer pump system and shall not be liable for any damages resulting from a failure of the private sewer pumping system to operate as intended. 2. When a property is at the end of an existing sewer main or a future sewer main line extension, with no possibility of extension beyond this property (examples include properties at the end of a terminal cul-de-sac, where it is not feasible to extend the sewer main) the customer may connect to the end of the sewer main line at the remote property boundary. 3. When the sewer master plan and current topography dictates that a future sewer main line extension is not feasible, the customer may connect to the end of the sewerline at the remote property boundary. 3.6 At such time as an existing approved private sewer disposal system fails, the property shall connect to the public sewer if the public sewer is available to the property according to these rules. The property owner shall apply for a direct connection public sewer in compliance with these Rules and Regulations; and any septic tanks, cesspools, and similar private sewerage disposal facilities, shall be abandoned and filled with suitable material in accordance with the rules and regulations of the agency having jurisdiction over such private sewerage disposal facilities. SECTION 4: BUILDING SEWERS 4.1 A building sewer permit and excavation permit shall be obtained from the appropriate public agency having jurisdiction prior to construction. 4.2 An applicant to connect to the public sewer shall be responsible for costs and expenses incident to the installation and connection of the building sewer. Applicant shall indemnify the District, and shall be fully responsible for all private plumbing, including the sewer lateral, up to the District's sewer main. 4.3 The building sewer shall conform to the requirements of the Building and Plumbing Code of the appropriate agency having jurisdiction. 4.6 The connection of the building sewer into the public sewer shall conform to the requirements of the Building and Plumbing Code and the District specifications. All such connections shall be made gastight and watertight. Any deviation from the prescribed procedures and materials must be approved by the District Engineer before the installation. 4.7 A sewer backflow prevention valve shall be installed on all sewer service connections where the upstream sewer manhole rim elevation is higher than the pad elevation of the structure desiring sewer service and shall conform to the requirements of the Building and Plumbing Code of the appropriate agency having jurisdiction. 4.8 The applicant for the building sewer permit shall notify the District when the building sewer is ready for inspection and connection to the public sewer. Connection shall be made under the supervision of the District Engineer or his representative. 4.9 All excavations for building sewer installations shall be adequately guarded with barricades and lights so as to protect the public from hazard. Streets, parkways, sidewalks, and other public property disturbed in the course of the work shall be restored in the manner satisfactory to the agency having jurisdiction. SECTION 5: SERVICE CONNECTIONS 5.1 Application for a service connection shall be made on an approved form furnished by the District. This application shall specify the size of service, the location and acreage of the property to be served, and the type of service. The information supplied by the applicant on such application shall be considered as authority and final. If any error in such application shall cause the installation of a service connection that is improper whether in size or location, the costs of all changes required shall be borne by the applicant. 5.2 All costs and expenses incident to the installation of the service connection shall be borne by the applicant. Applicant shall indemnify and hold the District, its Directors, officers and employees harmless from any loss or damage that may be directly or indirectly occasioned by the installation of the service connection. 5.3 All sewer service connections shall be installed by a contractor licensed by the State of California to construct sewer mains. 5.4 The service connection shall conform to the requirements of the Standard Plans and Specifications of the District. 5.5 A sewer backflow prevention valve shall be installed on all sewer service connections where the upstream sewer manhole rim elevation is higher than the pad elevation of the structure desiring sewer service and shall conform to the requirements of the Building and Plumbing Code of the appropriate agency having jurisdiction. 5.6 All service connections shall be made gastight and watertight. Any deviation from the prescribed procedures and materials must be approved by the District Engineer before the installation. 5.7 The applicant or their contractor shall notify Underground Service Alert (USA) at least 48 hours in advance of any digging or excavating. 5.8 The applicant for the Sewer Connection Permit shall notify the District when the service connection is ready for inspection and connection to the public sewer. Connection shall be made under the supervision of the District Engineer or his representative. 5.9 All excavations for service connections shall be adequately guarded so as to conform to OSHA requirements to protect the public from hazard. Streets, parkways, sidewalks, and other public property disturbed in the course of the work shall be restored in the manner satisfactory to the agency having jurisdiction. 5.10 When the proper application for public sewer service has been signed, a service connection permit has been issued; the charge for public sewer service shall begin. If water service and public sewer service are not required when the sewer service connection is installed, the applicant must order the water service be shut off and sealed to avoid the charge for public sewer service and when the service is required, he must make proper application for service. 5.11 Each house or building under separate ownership must be provided with its own service connection or connections. Two or more houses or buildings with one owner and on the same lot or parcel of land may be supplied through one service connection or a separate service connection may be installed for each building. 5.12 Two or more houses or buildings with one owner and on the same lot or parcel of land, with two or more separate potable water meters, may be supplied through one service connection or a separate service connection may be installed for each building; however, under this scenario, the customer shall be responsible for paying the current sewer rates for each individual house or building, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 5.13 The District reserves the right to limit the number of houses, buildings, or area of land with one owner to be supplied by one service connection. 5.14 When property provided with a service connection is subdivided, the service connection shall be considered as belonging to the lot or parcel of land which lies closest to the connection and the lot or parcel of land which lies farthest away from the connection will be required to obtain a new connection in accordance with these Rules and Regulations. 5.15 A service connection shall not be used to supply adjoining property of a different owner or to supply property of the same owner on opposite sides of a street or alley. 5.16 District approval is required prior to the installation or extension of a service connection across or through any private property. SECTION 6: FEES AND CHARGES 6.1 A service charge shall be imposed on a property within the District desiring to connect to or participate in the public sewer system shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.2 SERVICE CHARGE: A charge determined by multiplying area of the property (calculated to the nearest square foot and including that portion of the property to the centerline of all adjacent streets) by the Service Charge Rate for the particular Drainage Area in which the property is located, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. The Service Charge is a fee for use of trunk, sub - trunk, and principal lateral sewer mains. 6.3 FRONTAGE CHARGE: The frontage charge, as calculated in Section 8, shall be applicable to property which has not paid for an existing sewer main across the frontage of the property, or in some cases, extended to edge of their property. The frontage charge is determined to be the highest dollar amount of the following three calculated conditions: 6.3.1 A charge determined by multiplying the front footage of the property by the per linear foot Frontage Charge Rate, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. The front footage shall generally be based on the length of that side of the property to which service connection is made, including the distance to the centerline of adjacent cross streets, if any. 6.3.2 The refund amount calculated and determined by the District, for developer or District -installed public sewer facilities, if any. The Frontage Charge Rate shall be equal to the "final cost of installation of the street sewer main" as determined in Section 8.3.4 of these Rules and Regulations, divided by the "probable number of service connections to the on-site lateral sewer main" as determined in Section 8.4. 6.3.3 The minimum Frontage Charge Rate, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.4 ADMINISTRATIVE FEE: An Administrative Fee shall be imposed on a per job basis for each application for service. The Administrative Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.5 PLAN CHECK FEE: A Plan Check Fee shall be imposed on a per connection basis for each service connection identified in the application for service. The Plan Check fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.6 INSPECTION FEE: An Inspection Fee shall be imposed on a per connection basis for each service connection identified in the application for service. The Inspection Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.7 RECORDS AND BILLING FEE: A Records and Billing Fee shall be imposed on a per connection basis for each service connection identified in the application for service. The Records and Billing Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.8 SINGLE SERVICE FEE: A Single Service Fee shall be imposed on a service connection, to a single lot where the sewer main already exists and where, in the District's judgment, it is not necessary to process an application for service. The Single Service Fee shall be pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.9 GIS DATA CONVERSION FEE: A GIS Data Conversion Fee shall be imposed for each individual job, for each application and shall be pursuant to the latest adopted Water Development and Customer Service Fees Resolution. 6.10 SEWER METERS: Under special circumstances, at the discretion of the District, sewer effluent may be metered and the applicant for such public sewer service shall pay to the District the cost of the installation and the cost of such metering device as may be required by the District. All such metering devices shall be read monthly and the customer shall be billed monthly for the public sewer service at the effluent discharge rate pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. Any applicant for such public sewer service, in lieu of compliance with requirements of an effluent metering device as provided in Section 6. 10, may elect to pay for such public sewer service at the effluent discharge rate as applied to the quantity of water measured by the water meter provided for such property to be billed at the time of billing by the District for such water service, pursuant to the latest adopted Sewer Development and Customer Service Fees Resolution. 6.11 MONTHLY SEWER MAINTENANCE CHARGE: All residential single family homes, residential multiple unit dwellings and commercial/industrial customers shall pay a monthly sewer maintenance charge pursuant to the latest adopted Resolution Setting Sewer Rates. A Maintenance Charge shall be affixed against all water service connections within the District's boundary that are also connected to the District sewer system. The charge affixed shall be collected as a part of the water bill for those customers that receive water service from the District. For customers that are connected to the District sewer system and do not receive water service from the District, the sewer maintenance charge will be collected by billing on the County property tax bill for the property receiving sewer service. For all customers, the rate shall be pursuant to the latest adopted Sewer Maintenance Charge Resolution. 6.12 FEES, CHARGES AND EASEMENTS: Prior to the General Manager, or designee assigned by the General Manager, signing the Improvement Plans or approving an application for sewer service, the applicant shall dedicate all easements deemed necessary by the District and pay to the District all fees in the amount set forth herein. Non -District improvements (permanent, temporary or mobile) are not permitted within easement area, for all other sewer customers in this category who use water meter reading, the rate shall be pursuant to the latest adopted Sewer Maintenance Charge Resolution. SECTION 7: SEWER MAIN EXTENSION APPLICATION POLICY 7.1 Any applicant, who as owner or sub -divider of a single lot, subdivision, or tract of land, shall construct sanitary sewer facilities, to such lot, subdivision or tract of land, in accordance with these Rules and Regulations and the latest adopted District's Sewer Master Plan and, shall file a written application with District. 7.2 An individual may file an application, or two or more persons may join in an application for the extension of public sewer mains. 7.3 The application shall include, in addition to the information required in Section 5. 1, the proposed or desired location of public sewer mains and other pertinent engineering data so as to enable the District to determine the conformance of the proposed public sewer main extension with the Standard Plans and Specifications of the District. 7.4 All extensions of public sewer mains shall require Terms and Conditions approved by the Board of Directors, and plans and specifications approved by the General Manager and the District Engineer. 7.5 The engineering design and construction of the public sewer main extension shall include sewer lateral stub -outs for neighboring properties fronting the extension. 7.6 If and when said applicant has complied with all requirements of the District, including the payment of all fees required in Section 6 and the posting of a Guarantee Bond, and such other provisions of the subdivision ordinance or ordinances dealing with public improvements as may be applicable, the District shall approve construction of the sewer main extension. 7.7 The applicant for the sewer main extension shall notify the District at least two working days prior to the start of construction of the sewer main extension. Construction shall be done under the inspection of the District Engineer or his representative. 7.8 It is the District policy not to make a direct frontage charge against any property owner or owners for easements which have previously been acquired by or for the benefit of the District from said property owner or owners for extension of the District's facilities. 7.9 Refer to Section 5 for additional conditions. SECTION 8: FRONTAGE CHARGE DETERMINATION 8.1 All property within the District for which application is made for public sewer service from a street sewer main, which main can provide public sewer service to property in addition to the property described in the application for such public sewer service shall pay an Administration Fee, Records and Billing Fee, Plan Check Fee, Inspection Fee and service charges as identified in Section 6, pursuant to the Sewer Development and Processing Fees Resolution. 8.2 FRONTAGE CHARGE: A charge equal to the "final cost of installation of the on-site lateral sewer main" as determined in Section 8.3.4 of these Rules and Regulations, divided by the "probable number of service connections to the on-site lateral sewer main" as determined in Section 8.4, but not less than the Frontage Charge as described in Section 6, pursuant to the Sewer Development and Processing Fees Resolution. 8.3 All applicants who desire public sewer service to property within the District or who must construct, at the expense of the applicant, on-site lateral sewer mains which can provide public sewer service to property in addition to that property described in the application for public sewer service to such property, shall enter into an agreement with the District which provides as follows: 8.3.1 That applicant shall have installed, in accordance with these Rules and Regulations, and Standard Plans and Specifications of the District, those public sewer facilities required to provide service to the property described in such application. 8.3.2 That the cost of said installation shall be paid by the applicant, and shall include the cost of engineering, the sewer contractor's invoice cost, the land acquisition and legal cost, and the plan check and inspection charges paid by applicant in connection with said installation. 8.3.3 That the applicant shall report such cost of said installation to the District in a form approved by the District and all items of such cost of installation thus reported shall be supported by invoices or statements verified to the satisfaction of the District. 8.3.4 That the "final cost of installation of the street sewer main" shall be the cost of said installation as verified by the District plus an allowance for the overhead of the applicant as determined by the Board of Directors of the District, but not to exceed 15% of the cost of said construction. 8.3.5 That the applicant shall transfer title of said public sewer facilities to the District in accordance with these Rules and Regulations. 8.4 In the event the cost of said installation exceeds the Frontage Charge, said excess amount shall be subject to a refund contract between the District and the applicant. The refund contract shall provide as follows: 8.4.1 That the District shall collect Frontage Charges from all properties later connecting to on-site lateral sewer main, and said frontage charges shall be paid to those parties entitled to refunds pursuant to these Rules and Regulations. 8.4.2 That such refunds shall be paid from the frontage charges collected by the District without interest; and that if the District fails to charge and collect said sums, the District shall make such refunds from other District funds. 8.4.3 That the District shall calculate and determine the amount of such refund as follows: 1. The District shall determine the probable number of service connections which will be made to the on-site lateral sewer main. This number shall not include those connections which, though possible, are doubtful at the time of application. 2. In the event the actual number of service connections to said on-site lateral sewer main exceeds such probable number of service connections to said on-site lateral sewer main, the frontage charge shall be determined by the following formula: F=T/N. Where F is the Frontage Charge; T is the final cost of installation; N is the actual number of service connections including the connection for which the frontage charge is to be determined. 3. All sums collected with respect to a particular on-site lateral sewer main shall be paid only to the applicant who was required to construct said on-site lateral sewer main until such time as all of such refunds to which said applicant is entitled hereunder have been paid. 4. All right to such refunds and all duty of the District to collect such frontage charges with which to pay such refunds hereunder shall terminate on the date thirty (30) years after the date on which the application for service is dated. 8.4.4 In the event the actual number of service connections to said on-site lateral sewer main exceeds the probable number of service connections to said on-site lateral sewer main refunds shall be made as follows: 8.4.4.1 The amount of refund shall be determined in accordance with the following formula: R = F/(N-1). Where R is the amount of the refund per connection; F is the Frontage Charge; N is the actual number of service connections including the connection for which the frontage charge was collected. 8.4.4.2 Such refund shall be made to the applicant who had installed the on-site lateral sewer main for the property owned at the time of installation and refund shall be made to the owner of the real property at the time of refund for any other real property which obtained public sewer service from said on-site lateral sewer main after the time of installation. 8.4.4.3 The term "on-site lateral sewer main", as used in these Rules and Regulations of the District shall mean a sewer main that has not been established by the District as a trunk sewer, sub -trunk sewer, or principal lateral sewer main. SECTION 9: SEWER ASSESSMENT DISTRICT 9.1 The District recognizes that there are certain areas within the District that, because of location, topography or size of parcels, have been unable to take advantage of public sewers as has the majority of the District and have therefore remained undeveloped and have not contributed proportionately to the financial growth and strength of the District. The District will examine these cases at the request of the proponents and make findings as to whether or not the District chooses to participate in financing construction of trunk sewer facilities. If, in the Board of Directors opinion, it is advantageous for the District to participate financially in trunk construction the Board may, at its discretion, choose to do so in accordance with Section 9 of these Rules and Regulations. 9.2 A preliminary feasibility report shall be prepared for areas capable of public sewer service from a common line whose proponents desire to have the District participate in the financing. If the area requesting participation is at least 15 acres or larger, whether contiguous or not, proponents shall prepare the preliminary study, or may request the General Manger to prepare such preliminary report. If the area is less than 15 acres, whether contiguous or not, the proponents may request the General Manager to undertake a preliminary study and if the Board determines that the proposal has sufficient merit it may authorize the General Manager to cause such study to be prepared. 9.3 Upon the receipt of a preliminary report, the Board shall appropriately notify the proponents and permit them an opportunity to comment thereon. The Board may thereafter approve and adopt said preliminary report and authorize the District's financial participation in the project upon the following general conditions: 9.3.1 That the District will be the contracting agency for approval of the plans and specifications, advertising for bids, receipt of bids, award of contract, supervision of contract, construction inspection and final acceptance. 9.3.2 That all funds to be contributed by any participants, other than District, shall be deposited with the District in full prior to award of any construction contract. The Board will require payment of all fees for Plan Check and Inspection. 9.3.3 That all refund monies to which the project might be entitled, by priority or otherwise, are irrevocably assigned to the District until the District has been refunded in full for all its monies advanced or charges owed by said project. Thereafter, any refund monies shall be paid to those entitled thereto pursuant to these Rules and Regulations. 9.3.4 In addition to a charge of five per cent (5%) of the total project cost for overhead and office work, the project shall pay to the District an interest charge on the District's contributions to the project equal to the cost of such money, or equivalent money, to the District. There shall also be collected a pro -rated sum for the cost of any general engineering, aerial survey, mapping, or other work which the District may have done to assist the promotion of this project. 9.3.5 That the proponents will contribute a sum per acre pursuant to the Sewer Development and Processing Fees Resolution, for each acre of property they are including within the project for offsite public sewer trunk improvements. The District's participation shall not exceed fifty per cent (50%) of the total project cost without a specific finding by the Board as to the general benefit to the District of such higher participation. 9.4 Upon the approval and adoption of a project, the Board may undertake its completion as called for in a contract or contracts entered into for such purpose. The General Manager is hereby directed upon such approval, to notify all other property owners, as they appear on the last equalized assessment roll, potentially benefiting by such project, of its adoption and inviting them to participate. No delay in the accomplishment of a project is contemplated by late participants. SECTION 10: DISCHARGE OF CERTAIN MATERIALS INTO PUBLIC SEWER PROHIBITED 10.1 Discharge into public sewer shall be in accordance with the latest adopted Ordinance of the Board of Directors of Orange County Sanitation District Establishing Wastewater Discharge Regulations. 10.2 Fats, Oils and Grease Control regulation shall be in accordance with the latest adopted District Ordinance for Fats, Oils and Grease Control Regulations, as applicable to food service establishments. 10.3 The customer is responsible for maintaining and repairing, at their own expense, the entire connection line from the building or proposed building to the main line in the street. If sewer leakage actually, or potentially, creates a public health hazard, and the customer does not pursue repairs, the District, at its discretion, may repair or have repaired the customer's portion of the connection line; the District will, in turn, bill the responsible party or agent for the property of said connection line for the cost of the repair, maintenance or cleaning plus 20% of the invoice amount for administrative staff time, oversight of the repair, maintenance or cleaning work and staff time to process billing to the customer. SECTION 11: PROTECTION FROM DAMAGE 11.1 No unauthorized person shall maliciously, willfully, or negligently remove, change, disturb, break, damage, destroy, uncover, deface, or in any way tamper, or interfere with any facility, apparatus, appliance, property, structure, appurtenance, or equipment which is used or maintained as a part of the sewerage works. Any person violating this provision shall be subject to arrest and prosecution. SECTION 12: POWERS AND AUTHORITY OF INSPECTORS 12.1 The General Manager and other duly authorized employees of the District, bearing proper credentials and identification, shall enter premises for the purposes of inspection, observations, measurement, sampling and testing in accordance with the provisions of these Rules and Regulations, provided that the property owner, or their designated representative, provides an invitation to enter premises. 12.2 The General Manager and other duly authorized employees of the District, bearing proper credentials and identification, shall be permitted to enter all private properties through which the District holds a duly negotiated easement for the purposes of, but not limited to, inspection, observation, measurement, sampling repair and maintenance of any portion of the sewerage works lying within said easement shall be done in full accordance with the terms of the duly negotiated easement pertaining to the private property involved. 12.3 An official District issued identification card shall be carried by all District employees, and shall be available upon request of property owner or their designated representative, if District employee is required to enter private premises. SECTION 13: VIOLATIONS 13.1 Any person found to be violating any provision of these Rules and Regulations shall be served by the District with written notice stating the nature of the violation and providing a reasonable time limit for the satisfactory correction thereof. The offender shall, within the period of time stated in such notice, permanently cease all violations. 13.2 Any person who shall continue any violation beyond the time limit provided for shall have their water service subject to discontinuance. Reinstatement of water service shall be made only on correction of the violation and payment of all applicable fees. 13.3 Any person violating any of the provisions of these Rules shall become liable to the District for any expense, loss, or damage occasioned by the District by reason of such violation. SECTION 14: VALIDITY 14.1 The invalidity of any section, sentence, clause or provision of these rules shall not affect the validity of any other part of these rules which can be given effect without such invalid part. AGENDA REPORT Meeting Date: May 9, 2017 ITEM NO. 9.1 Subject: Ad Hoc Citizens Advisory Committee Recommendations to the Board of Directors ATTACHMENTS: Name Description: Type: AHCAC Recommendations. Pd Backup Material Backup Material Backup Material Distributed Less Than 72 Hours Prior to AHCAC Recommendations Presentation.pdf Backup Material the Meeting RECOMMENDATIONS Ad Hoc Citizens Advisory Committee Yorba Linda Water District Adopted May 4, 2017 Ad Hoc Citizens Advisory Committee Yorba Linda Water District INTRODUCTION The Ad Hoc Citizens Advisory Committee was charged by the Board of Directors to provide recommendations regarding both the structure and sufficiency of water rates in the Yorba Linda Water District, and we are pleased to offer a set of recommendations here. Our recommendations are intended to improve the YLWD rate structure by making it more financially stable, more resilient to changing circumstances, easier to understand, and more equitable, while providing the District with the rate revenues needed for the cost of service, including operations, maintenance, capital projects, and maintaining adequate financial reserves. Our recommendations are intended to promote stability, water efficiency, transparency, and adherence to the letter and the spirit of governing laws. And our recommendations are intended to promote financial accountability to ratepayers through careful budgeting and reconciliation, including providing appropriate refunds to ratepayers. 2 1. Budget -based Rates Note: + RECOMMENDATIONS Ad Hoc Citizens Advisory Committee Yorba Linda Water District Water Efficiency Program Inefficient Water Use 3 $$/Unit + Excessive Water Use ° $$$/Unit 'Amount attributable to the fixed charge and the base var'eale charge to be determined by Board policy 2 Zones to he defined based on water pressure zones j i.e. Zane 675E to cover energy costs and R&R for that zone. Inefficientvoater usage %vouId he defined as the amount cf water used over parcels water budget, but less than excessive use. Excessive water usage to be defined. (a) Explore budget -based water rates using the following proposed rate structure: (See diagram) 1) Base fixed charge 2) Variable water charge based on water budgets to be developed for each property according to land use type. Residential budgets to be based on indoor water use (people per household) and outdoor water use (area of landscaping) 3) Zone -based energy variable charges 4) Zone -based R&R fixed charges (b) Develop an appeal and variance system for ratepayers to dispute and resolve potential issues with calculated water budgets. (c) Organize a collaborative group of staff and citizens to assist with development and implementation of budget -based rates. 2. Near -Term Rates (a) In anticipation of a timely push to adopt tiered budget -based rates, and to avoid the costs of a rate study and Prop 218 analysis, and to avoid further confusion for rate -payers, we recommend no immediate change to the current base rate and commodity rates. (b) Until the new budget -based rates are adopted, rate revenue should be reviewed annually against cost -of -service and reconciled with the adopted budget and cash flow projections. Any surplus over - budget should be returned to the customer as a credit to the account. Any deficit should be balanced with the rate stabilization reserve. Ad Hoc Citizens Advisory Committee Yorba Linda Water District 3. Refund (a) We recommend that YLWD refund $50-90 per connection in a reconciliation of the FY 2015-2016 budget. The refund should be proportional to the existing fixed fee structure. (b) We recommend a detailed public statement by the Board to explain the rationale behind this refund, to help restore the public trust and promote goodwill, to correct any prior misstatements, and to commit to new budget accountability processes moving forward. 4. Implementation and Education Program: Budget -based Rates (a) The Board should set a target date for implementing budget based rates. We suggest budget year FY2018/19, but not later than FY2020/21. (b) Organize a collaborative group of staff and citizens to assist with development and implementation of budget based rates. (c) Apply to SAWPA for available grant funds to defray the cost of developing budget based rates. (d) In anticipation of a timely push toward tiered budget -based rates, we recommend that the District begin design and preliminary implementation of a comprehensive rate -payer and water -consumer education and marketing program regarding important details and deadlines for the new rate structure implementation. (e) Issues to be addressed by the education program should include (but are not necessarily limited to): • Values and reasoning behind the structural changes • Clear guidance as to what water budgets are and how they are set • Clear guidance for variances and appeals processes • Tools and resources for all types of users for meeting efficiency targets • Provide examples of rate impacts in advance (i.e. provide clear side-by-side sample bills to each customer ) S. Annual Cost of Service Review: Budget -based Rates As part of the adoption of budget -based rate structure, the District should commit to an annual cost of service review to provide transparency and maintain flexibility, especially during the initial years of the new structure. 4 Ad Hoc Citizens Advisory Committee Yorba Linda Water District 6. Administrative Penalties and Efficiency Program (a) Efficiency Program (1) In anticipation of a timely push toward tiered budget -based rates, and in anticipation of new permanent state water efficiency standards, we recommend that the District begin a collaborative process for planning and budgeting a robust efficiency program to be funded by inefficient and wasteful tiers of the new rate structure. (2) Dedicate the Conservation Reserve Fund (currently consisting of penalty funds already collected) to consist of surcharges from inefficient/abusive water sales in the tiered rate system. (3) Operate the efficiency program's first year out of existing penalty funds in the reserve, while collecting surcharges from first year inefficient/abusive water sales. At the end of first year (and end of every year thereafter) recalculate inefficient/abusive surcharge based on actual program costs and actual past year sales. (b) Administrative Penalties As soon as possible, revise existing administrative penalty Ordinance 16-01 to: (1) Take into account the equitable factors underlying water budget rates (i.e., size of household, size of irrigable area, etc.); and (2) Explicitly change to a per diem water usage allowance to deal with the different billing period lengths (i.e., explicitly allow larger usage limits for billing periods that exceed 28 days). 7. Transparency: Capital and Repair/Replacement Budgets and Asset Management Plan (a) For transparency, clearer and more frequent reporting of capital and repair/replacement expenditures is necessary to understand the nature and scope of capital work underway at the District at any given time. A statement on capital improvement and repair/replacement progress should be made available at least quarterly. The statement should clearly show capital expenses and transfers to and from reserves attributable to particular projects. (b) Capital Improvement Budget — both long term and short term -- should be clearly and quantitatively reconciled annually to demonstrate progress and to anticipate shortfalls in funding for needed capital improvement projects. The capital improvement budget should identify the sources and amounts earmarked to fund each project, i.e. reserves, developer payments, grants, other agencies, etc. (c) Repair/Replacement Budget - A detailed annual optimized R&R budget should be established and tracked and reported separately from the capital improvement budget. The R&R budget should be reviewed and evaluated annually in comparison with similarly situated water districts, budgets, actuals, and problem areas. The review should be formal and public and transparent. (d) The Asset Management Plan should be updated as soon as possible, and the District's performance under the previous plan should be evaluated for accuracy of assumptions and projections. The Asset Management Plan should accomplish the following: 5 Ad Hoc Citizens Advisory Committee Yorba Linda Water District • Determine the current replacement cost of all District infrastructure assets • Calculate the current annual depreciation amount of all infrastructure assets based on expected useful life and straight-line depreciation • Determine the current backlog of repair/replacement work needed based on expected useful life and straight-line depreciation (The total replacement cost of those assets beyond their expected useful life.) • Establish a recommended annual repair and replacement schedule incorporating the District's "ugly list" of priority replacement projects • Recommend a time period and annual optimized budget for catching up on the backlog • Provide a digital model (i.e. Microsoft Excel) for District staff to update the Asset Management Plan as repair and replacement work is completed and capital improvements are added, no less frequently than quarterly. 8. Transparency: Reserves (a) The District should deliver clearer and more regular public reporting of reserve balances and line item detail in each reserve category consistent with the reserve policy. In particular, expenditures from an "emergency" reserve should be more clearly attributable to a particular emergency; expenditures from the capital reserve should be more clearly attributable to a particular capital project. (b) Repair/Replacement Reserves should be reported separately from Capital Improvement Reserves, which are reserves for new construction or upgrades to existing infrastructure. (c) We believe that the District's current levels of reserves are more than ample to meet the District's current service commitments. In setting future reserve levels, the District should (1) avoid overlap of reserve categories, and (2) consider the District's ability to rely on non-cash reserves such as committed line of credit, property sale-leaseback, etc. 9. Transparency: Financial Reporting (a) Monthly financial reports should be published on a stand alone basis on the district's website in a way that is easy to find and access (versus the current method of only publishing monthly reports as agenda attachments). The website location should include the most recent as well as historical reports. (b) A monthly update of the forecasted year end net position compared to the original budgeted year end net position should be added to the monthly budgets to actuals report. (c) There should be a single monthly report that shows a summary balance sheet portrayal of the district's financial position. This report should list each reserve, debt, and overall cash on hand. Currently, disparate reports have to be viewed to see these items. 11 Ad Hoc Citizens Advisory Committee Yorba Linda Water District 10. Strategic Planning (a) The District should plan and budget for an update (or complete re -write) of its comprehensive master plan / strategic plan documents. (b) The plan should be developed collaboratively with stakeholders (including rate -payers). (c) The plan should reflect new realities for efficiency standards, budget -based rates, advanced meters, and modern communications strategies. 11. Low Income / Fixed Income Rate Assistance Study Due to the short timeframe for the ad hoc committee, we were unable to study rate assistance programs for low income and fixed income rate -payers. We recommend that the District review such programs in other water districts, and evaluate the legality of and need for a similar program in this district, including budget and source -of -funding recommendations. 12. Transparency: Metrics and Benchmarks Our District: 1) is not subject to state federal or local income or property taxes; 2) receives a tax substantial tax subsidy (over $1.5 million in FY2016); and 3) neither pays a dividend to its owners nor otherwise provides owners with capital appreciation. There appears to be consensus among customers in general and YLWD that YLWD should remain an independent water agency. To remain independent and avoid takeover, the District must be demonstrably efficient. The rates charged must be compared to other water suppliers taking into account the three advantages listed above and a comparison of operational metrics should be made to demonstrate competitiveness of those rates. a) The committee recommends that the Board of Directors formally adopt a set of ratios (management metrics and benchmarks) to be used to gauge district performance. The definition of the denominators and numerators of such metrics should cite specific line items from financial statements, budgets and forecasts, and might include the following: Numerators: Cash & Short-term investments; unrestricted reserves; restricted reserves; total revenue; operating revenue; total costs; operating costs; District area (acres); District population; salaries and benefits cost; supplies and services costs; variable costs; debt, interest expense and others. Denominators: miles of mains; asset net book value; asset replacement cost; number of employees; and others. Other metrics that can be used are debt service coverage; interest coverage; debt. Comparisons can be made between budget and actual; current year forecast to next year budget; Current year actual to next year budget; as well as to other water suppliers. Comparisons might also be made over multi-year periods to see trends. 7 Ad Hoc Citizens Advisory Committee Yorba Linda Water District b) To assure comparisons of different periods are meaningful, a well-defined methodology of financial budgeting and forecasting must be adopted and adhered to. 13. Staffing Review (a) The District should consider a comprehensive review of staffing needs and organizational structure. In particular, the District should consider eliminating long -vacant positions, rebalancing workloads, and to minimize overtime. In addition, salaries and benefits should be reviewed for competitiveness in the current regional market, with an eye on uncontrolled liabilities to the District. 14. Professional Services Costs and in -House Planning (a) To the extent that outside consultants and professional service are necessary to complete planning and engineering documents and rate studies (etcetera), significant contracts must be competitively bid, or the Board must specifically grant a waiver or exception. New qualified providers should be identified. Related documents should be more readily available on the website. (b) The District should consider, when appropriate and cost-effective, adding permanent in-house planning and engineering staff in an effort to avoid and minimize professional services contracting costs, and to provide oversight of professional services contracting. U., Backup Material Distributed Less Than 72 Hours Prior to the Meeting Yorba Linda Water District Ad Hoc Citizens Advisory Committee Recommendations Purpose "Provide input, comments and feedback on the topic being considered by theYLWD Board for the purpose of establishing a financially sufficient rate ander rate structure" Our Intentions • ImproveYLWD rate structure • more financially stable • more resilient to changing circumstances • easier to understand • and more equitable • ProvideYLWD with rate revenues needed for the cost of service • operations, maintenance, capital projects, and reserves • Promote important values • stability • water efficiency • transparency • adherence to the letter and the spirit of governing laws • Encourage financial accountability • careful budgeting and reconciliation • appropriate refunds 14 Consensus Recommendations Recommendation: Budget -based rates • Base fixed charge • Variable water charge based on water budgets to be developed for each property according to land use type. Residential budgets to be based on indoor water use (people per household) and outdoor water use (area of landscaping) • Zone -based energy variable charges • Zone -based R&R fixed charges Fo I UsTil 0 a Norte: Watar Eff chit} Program Inefficient Water Ilse' I SVtlnit T [E cessfve Water Use' I SWUnit 1A mount attributabie to the Fixed charge and the hese variable charge to be determined by Board policy, 2Zones to be defined based on water pressure zones {i.e. Zone 675) to coverenergy casts and R&R for that xo(ne. 3 Inefficient water usage would be defined as the amount of water used over a parce I s water budget, but less than excessive use. 4 Excessive water usage to be def inead. Recommendation: Budget -based rates • Implementation • Suggest target date FY2018/2019, not later than FY2020/2021 • Organize collaborative group to assist design and implementation • Apply for grant funding • Begin design and implementation of education and marketing campaign • Annual Cost -of -service Review Recommendation: Near-term rates • Assuming transition to budget -based rates • We recommend no immediate change to the current base rate and commodity rates. • Annual review and reconciliation of rate revenue with cost of service budget • Surplus to be returned to customer • Deficit to be covered by rate stabilization reserve Recommendation: Refund • We recommend thatYLWD refund X50-90 per connection in a reconciliation of the FY 2015-2016 budget. • proportional to the existing fixed fee structure • We recommend a detailed public statement by the Board • to explain the rationale behind this refund • to help restore the public trust and promote goodwill • to correct any prior misstatements • to commit to new budget accountability processes moving forward Additional Recommendations • Efficiency Program • To be funded by wasteful and inefficient tiers of new rate structure • Use Conservation Reserve Fund for initial expenses/operations • Review annually • Begin collaborative process for planning and budgeting program • Administrative penalties • Amend current ordinance to account for equitable factors • Ament current ordinance to account for different billing periods Additional Recommendations • Transparency: Capital Projects / R&R /Asset Management • Clearer, more frequent reporting of expenditures and progress on projects • Separate capital and R&R budgets and reporting • Annual reconciliation of capital and R&R budgets • To demonstrate progress and anticipate shortfalls • To identify sources and amounts of funds earmarked for particular projects • Update Asset Management Plan ASAP • Transparency: Reserves • Clearer, more frequent reporting of balances and expenditures in each reserve category Additional Recommendations • Overall Reserve Balance: "We believe that the District's current levels of reserves are more than ample to meet the District's current service commitments." • Transparency: Financial reporting • Make reports more easily accessible on website • Provide monthly updated forecast for year-end position (in addition to YTD budget -to -actuals) • Provide single monthly report ofYLWD financial position, including reserve balances, debt, cash -on -hand Additional Recommendations • Update Strategic Plans • Study Low-income / Fixed-income Rate Assistance • Develop benchmarks and metrics for transparency and management • Review overall staffing needs and organizational structure • Review professional services costs and whether adding in-house capability could help minimize professional services contracting costs. ThankYou ITEM NO. 9.2 AGENDA REPORT Meeting Date: May 9, 2017 Subject: Current Water Conservation Legislation ATTACHMENTS: Name Description: Type: Water Legislation.pdf Backup Material Backup Material Backup Material Distributed Less Than 72 Hours Prior to TPA Monthly Report.pdf Backup Material the Meeting Trailer Bill Language 810 Executive 0 B-37-16 Friedman Bills AB 1669 Authorizes and requires SWRCB to adopt long- term water use efficiency standards. AB 1668 Requires new drought shortage response with detailed levels of response. Incorporates climate change, enhances water supply analysis, and strengthens the enforceability of urban water management plans and drought response plans. AB 1667 Requires all agricultural water suppliers report water budgets, have drought plans, and expands efficient water management practices. Rubio Bills AB 968 Requires new 2025 water use efficiency targets for urban water suppliers. Provides options for the targets, protects water rights, and exempts recycled water. AB 1654 Requires new drought shortage response procedures in urban water management plans. Defines emergency supply, and protects water suppliers that comply with the plans from any state action in times of drought. AB 869 Exempts recycled water from conservation requirements under all conditions. Page 5 Table 1. Comparison of Local Water Agency Sponsored Legislation AB 968 and AB 1654 (Rubio) with Brown Administration's Budget Trailer Bill 810 and AB 1668 and AB1669 (Friedman) Compliance Methods to Meet New Standards Enforcement Commercial, Institutional and Industrial Requirements Water Rights Drought Planning Drought Response Water Infrastructure Investments One - Allows only one mechanism, defined by the State Water Resources Control Board (SWRCB) via emergency and permanent regulations, with no oversight from the Legislature and no CEQA review Misdemeanor Penalties - Imposes SWRCB cease and desist order processes and misdemeanor penalties ($20,000 plus $500/day) for failure to meet efficiency planning targets SWRCB Regulations -Authorizes the SWRCB to adopt emergency or permanent regulations to limit CII water use No Water Rights Protection - Specifies that state efficiency standards supersede water rights, undermining over a century of precedent Expanded State Control - Extends to one year the duration of State mandates during a declared emergency One -Size -Fits -All - Requires multiple arbitrary stages, set by the SWRCB, that may not reflect local conditions; requires drought emergency declaration at a certain undefined stage Strands Investments - Conservation requirements are applied to all water supplies, stranding and disincentivizing resiliency investments Multiple - Allows local water suppliers the choice of multiple mechanisms to determine compliance with water use efficiency standards — ensuring flexibility while accommodating local conditions and system characteristics Ineligibility for Grants - Maintains current ineligibility for grant funding for failure to meet efficiency planning targets Stakeholder Process - Water suppliers, business organizations and other stakeholders work with the State to define appropriate efficiency targets for commercial, institutional and industrial (CII) users Water Rights Protection - Maintains Water Code Section 1011 protection of right to conserved water; reiterates that water rights law is not affected Improved Drought Preparation - Enhances the requirements for water suppliers to plan for and respond to drought Locally Tailored - Maintains authority of local water supplier to define drought stages and actions, and decisions to declare emergencies Protects Investments - No limitation of use of emergency or drought -resilient water supplies, incentivizing water reliability investments Page 22 of 38 TC.)WNSEND PUi3LIC: 'Ilk Fr' Aims EST TPA 1998 MEMORANDUM To: Yorba Linda Water District From: Townsend Public Affairs, Inc. Date: May 9, 2017 Subject: Monthly Political and Activity Report State Political Uodate The month of April was an abbreviated month for the Legislature, as they adjourned for Spring Recess on April 7 and returned on April 17. When the legislators returned to Sacramento, they immediately set to work on passing bills out of their policy committees. Transportation was a major focus in April, as legislators spent significant time discussing the details of the $52 billion transportation funding package that was recently signed by the Governor. The Legislature faced a quick turn -around, as April 28 was the last day for policy committees to hear and report fiscal bills in their house of origin. Bills identified as having fiscal components that failed to pass out of their policy committees by April 28 have become two-year bills and will be eligible for consideration next year. Below is a list of key upcoming deadlines in the Legislature: May 12 — Last day for policy committees to hear and report non -fiscal bills to the floor May 26 — Last day for fiscal committees to hear and report bills to the floor Recent reports from the Department of Finance indicate that personal income tax revenues from April were $874 million above projected, putting the State's General Fund at $1.15 billion above the forecast in the Governor's January Budget. On Thursday, May 10, the Governor will release his May Revise Budget that will adjust his January Budget proposal based on updated revenues. Governor's Executive Order B-40-17 On April 7, the Governor lifted the drought state of emergency in most of California. Four counties in the Central Valley are still under the drought state of emergency due to their lack of groundwater supplies and emergency drinking water projects. This executive order builds upon the Governor's B-37-16 executive order in May 2016 by transitioning California water conservation regulations from emergency short term to long term. Since May 2016, over 20 public meetings have been held across the State to solicit stakeholder feedback and develop a new plan going forward. The new plan maintains several of the provisions of the emergency conservation regulations, such as water reporting requirements and prohibitions on wasteful practices. In addition, the State will continue to work to counter the effects of the drought including tree mortality and drought stressed forests. Southern California Office •1401 Dove Street, Ste. 330, Newport Beach, CA, 92660 • Phone (949) 399-9050 • Fax (949) 476-8215 Northern California Office • 300 Frank H. Ogawa Plaza Suite 204 • Oakland, CA 94612• Phone (510) 835-9050 • Fax (510) 835-9030 State Capitol Office • 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0209 Federal Office • 600 Pennsylvania Avenue, SE, Suite 207 • Washington, DC • Phone (202) 546-8696 • Fax (202) 546-4555 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Coinciding with the Governor's executive order was the release of a new framework by five state agencies: The State Water Resources Control Board, the Department of Water Resources, the California Department of Food and Agriculture, the California Energy Commission, and the California Public Utilities Commission. This framework, referred to as Making Water Conservation a California Way of Life, will require additional legislation to expand state authority with the intention of executing the Governor's executive order. Specific elements of the plan include: • Bans on wasteful practices, such as hosing sidewalks and watering lawns after rain. • Technical assistance, financial incentives, and standards to guide water suppliers' efforts to detect and repair leaks. • Requiring urban water suppliers to prepare water shortage contingency plans, including a drought risk assessment every five years. • Requiring more agricultural water suppliers to submit plans that quantify measures to increase water use efficiency and develop adequate drought plans. • Monthly reporting by urban water suppliers on water usage, conservation achieved and enforcement efforts • Improved drought planning for small water suppliers and rural communities. Cap and Trade On May 1, Senator Bob Wieckowski amended his SB 775 to address the growing concerns over the viability of the Cap and Trade program. SB 775 will attempt to provide the State with a more dependable revenue stream after the last four auctions provided dismal returns for the State's Greenhouse Gas Reduction Fund. This fund has been used in the past on programs such as the Water Energy Grant Program. The new proposal would take effect on January 1, 2021, and would do the following: • Remove the distribution of free permits • No longer allow companies to pay for offsets to greenhouse gas emissions, such as forest protection projects, green infrastructure projects, windfarms, etc as a way to meet their regulatory requirements • Set aside a portion of Cap and Trade revenue for rebates to Californians in preparation of higher costs of consumer goods as a result of increased compliance costs. • Set a $20 price floor and a $30 price ceiling for emission credits, an increase from its current price floor of $13.57 SB 775 requires a two-thirds vote in order to pass. It will be heard in the Senate Environmental Quality Committee, of which Senator Wieckowski is the Chair, on May 10. The Assembly also has legislation to address the Cap and Trade program. AB 151 (Burke) and AB 378 (C. Garcia) hope to expand the scope of benefits that the Cap and Trade program provides, including amending the legislation to allow for money to be spent on other public health programs such as asthma, Page 2 of 3 as well as to serve as the starting point for negotiations regarding the extension of the Cap and Trade program. Governor Brown and legislative leadership have set their sights on extending the Cap and Trade program, past the 2020 sunset, in order to quell the questions regarding the programs legal uncertainty. The Governor has expressed his desire to finalize the extension of the Cap and Trade program by June in order to line up with the timing of the FY 18 Budget deadline. State Reservoirs Below is a summary of the current storage levels of the State's principal reservoirs: Reservoir Name Capacity (AF) Storage (AF) % of Capacity % of Average Shasta 4,552,000 4,372,185 96 112 Oroville 3,537,577 2,773,760 78 95 Trinity 2,447,650 2,365,697 97 116 New Melones 2,400,000 2,044,233 85 135 Folsom 977,000 748,531 77 99 Page 3 of 3 Meeting Date: Subject: ATTACHMENTS: ITEM NO. 11.4 AGENDA REPORT May 9, 2017 Ad Hoc Citizens Advisory Committee • Minutes of meeting held April 20, 2017 at 6:00 p.m. • Minutes of meeting held April 27, 2017 at 6:00 p.m. • Minutes of meeting held May 4, 3017 at 6:00 p.m. (To be provided when available). Description: Type: 2017-04-20 Minutes AHCAC.docx Minutes Minutes 2017-04-27 Minutes AHCAC.docx Minutes Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT AD HOC CITIZENS ADVISORY COMMITTEE MEETING Thursday, April 20, 2017, 6:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The April 20, 2017 meeting of the Yorba Linda Water District's Ad Hoc Citizens Advisory Committee was called to order at 6:00 p.m. The meeting was held in the Training Room at the District's Administration Building located at 1717 East Miraloma Avenue, Placentia California 92870. 2. ROLL CALL COMMITTEE MEMBERS PRESENT Terry Harris (Chair) Pamela Hymel Dennis Anderson Ben Parker Lindon Baker Cristy Parker Jeff Decker Kenneth Tam Kent Ebinger YLWD STAFF PRESENT Malissa Muttaraid, Public Affairs Representative 3. PUBLIC COMMENTS Brief comments were received from the public, encouraging the committee to stay on the topic of rates and not be distracted with other issues, and to consider other revenue sources such as property tax assessments. 4. ACTION CALENDAR 4.1. Review of Minutes from Meeting Held on April 13, 2017 After correcting the spelling of the name of a member of the public and correcting a typo in the "Public Comments" section, the minutes were approved. 4.2. Committee's Recommendations to the Board of Directors a. Malissa Muttaraid gave a brief presentation on the history, status and administration of the YLWD conservation and efficiency program. Materials relevant to her presentation are to be placed on the committee's HUB on the website b. The committee discussed in detail a proposed recommendation by Dennis Anderson in favor of budget -based tiered rate structure with Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 20, 2017 at 6:00 p.m. zoned energy charges, and public comment was taken. Unanimously, the committee reached tentative agreement on the rate structure recommendation, and specific language will be presented to the committee for final approval at the next meeting. c. The committee discussed a proposed recommendation from Jeff Decker that ratepayers be refunded $72 as part of the current budget year reconciliation, and public comment was taken. After discussion, the committee agreed unanimously to recommend to the Board that ratepayers be refunded an amount in the range of $50-90 to be credited against the fixed charge. Specific language will be confirmed at the next meeting Cl. The committee discussed, and public comment was taken on, a proposed recommendation from Jeff Decker, and amended by Terry Harris, that until a budget -based tiered rate structure takes effect, that current rates remain in effect and that an annual reconciliation against the adopted budget occur to determine refunds if necessary. The committee unanimously adopted the recommendation, with specific language to be confirmed at the next meeting. e. The committee discussed and public comment was taken on a proposal from Jeff Decker that the CIP budget and financial planning documentation show explicitly all developer contributions into capital projects. The recommendation was unanimously adopted, with specific language to be confirmed at the next meeting. f. The committee discussed, and public comment was taken on a proposal that the Board issue a formal statement regarding the facts and circumstances of the budget reconciliation to accompany a refund. The committee agreed unanimously in principle with the proposed recommendation, but agreed to wait until the next meeting to review specific language. 5. DISCUSSION ITEMS 5.1 Future Meeting Schedule and Agenda Items The next meeting is set for April 27, 2017 at 6:00 pm. The agenda will be a continuation of both discussion and action on recommendations to the Board. 6. ADJOURNMENT 6.1. The meeting was adjourned at 8:47 p.m. TJ H Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 20, 2017 at 6:00 p.m. 2 MINUTES OF THE YORBA LINDA WATER DISTRICT AD HOC CITIZENS ADVISORY COMMITTEE MEETING Thursday, April 27, 2017, 6:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The April 27, 2017 meeting of the Yorba Linda Water District's Ad Hoc Citizens Advisory Committee was called to order at 6:00 p.m. The meeting was held in the Training Room at the District's Administration Building located at 1717 East Miraloma Avenue, Placentia California 92870. 2. ROLL CALL 3. 4. COMMITTEE MEMBERS PRESENT Dennis Anderson Fred Hebein Lindon Baker Ben Parker Kent Ebinger Cristy Parker Terry Harris YLWD STAFF PRESENT Malissa Muttaraid, Public Affairs Representative OTHER ATTENDEES Brent Ives, Principal, BHI Management Consulting PUBLIC COMMENTS No public comments on items not on the agenda ACTION CALENDAR 4.1 Review of Minutes from Meeting Held on April 20, 2017 Committee provided comments on if names of committee member's names should be mentioned specifically within the minutes. The committee decided to leave the minutes as filed and approved as is. 4.2 Committee's Recommendations to the Board of Directors Committee discussed each draft recommendation as drafted by Chair Harris. Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 27, 2017 at 6:00 p.m. Recommendation #1 — Discussed water rate structures and theory as proposed in draft recommendation. Committee added one comment on land use adjustments as needed. Committee unanimously adopted the recommendation with refinement. Recommendation #2 — Committee had brief discussion on recommendation as drafted and unanimously adopted. Recommendation #3 — Committee had discussion on the drafted recommendation. One member proposed language to introduce the recommendation and provide rationale for the refund. Committee discussed the draft language, made additions and adjustments to that language and adopted as amended. Recommendation #4 — Original recommendation #4 was combined with #5 and was unanimously adopted. Recommendation #5 — Original recommendation #5 was combined with #4. Recommendation #6 — Recommendation #6 was amended by the committee and approved. Recommendation #7 - Recommendation was #7 amended by the committee and approved. Recommendation #8 - Recommendation #8 was amended by the committee and approved. Recommendation #9 — Original recommendation #9 was combined with #10, amended by the committee and approved. Recommendation #10 — Original recommendation #10 was combined with #9. Recommendation #11 — Recommendation #11 was discussed at length by the committee and was tabled for further drafting to be reviewed at the next committee meeting. Recommendation #12 — Recommendation #12 was approved as drafted. At this point the committee discussed some details regarding further financial transparency. Access to financial report on the District's website was to be reviewed at the next meeting where the committee would decide if a recommendation on this topic would be written. Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 27, 2017 at 6:00 p.m. 2 Due to the time (8:52 p.m.), the committee decided that the remaining draft recommendations would be considered at the next meeting. The committee was made aware that their next meeting would be the last before their due date for reporting to the Board of Directors, is scheduled for May 4th and the finalized recommendations would need to be submitted to the District on May 5th in order to support the Board's May 9th agenda packet preparation. The committee also briefly commented and considered how the report was to be delivered to the Board at the May 9th meeting without resolution. Malissa Muttaraid, Public Affairs Representative for the District reported to the committee that a reporter for a local newspaper requested a committee contact. Chair Harris reported that he had spoken to the report earlier in the day. Ms. Muttaraid also informed the committee that a photo of the committee would be taken at the next meeting. 5. DISCUSSION ITEMS 5.1. Future Meeting Schedule and Agenda Items The next Ad Hoc Citizens Advisory Committee meeting is scheduled to be held Thursday, May 4, 2017 at 6:00 p.m. 6. ADJOURNMENT 6.1. The meeting was adjourned at 8:58 p.m. XE Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 27, 2017 at 6:00 p.m. 3 AGENDA REPORT Meeting Date: May 9, 2017 ITEM NO. 12.1 Subject: MWDOC Elected Officials' Forum - April 26, 2017 (Miller/Nederhood) ATTACHMENTS: Name Description: Type: MWDOC Forum Presentation.pdf Backup Material Backup Material M U NICIRAL WATER �F9TRFCT DF ORANGE COUNTY Agenda 4/26/2017 1 FY 2017-18 Proposed Budgets & Rates Making Water Conservation a California Way of Life San Diego County Water Authority Outreach Program Roundtable Discussion MUNICIRAL WATER DISTRICT OF ORANGE COUNTY March 2017 A&F Committee (3-8) —1St Draft Budget CHOICE Program Discussions Member Agency Manager's Discussion Member Agency Presentations as Requested 0 April 2017 A&F Committee Meeting (4-12) — 2"d Draft Budget Member Agency Formal Comments by April 15th Member Agency Manager's Discussion Elected Officials Meeting (4-26) Member Agency Presentations as Requested Confirm CHOICE Participation D May 2017 m* ".. Final Draft Budget & Rates to A&F Committee (5-10) Member Agency Formal Comments Member Agency Manager's DiscussionMl1 NICIPAL NM�Board Approval (5-17) — Final Budget DTRI WATTEISCT of - ORA N['s'E COUNTY 4/26/2017 2 MUNICIPAL WATER OISTRICT OF ORANGE COI March 2017 A&F Committee (3-8) —1St Draft Budget CHOICE Program Discussions Member Agency Manager's Discussion Member Agency Presentations as Requested 0 April 2017 A&F Committee Meeting (4-12) — 2"d Draft Budget Member Agency Formal Comments by April 15th Member Agency Manager's Discussion Elected Officials Meeting (4-26) Member Agency Presentations as Requested Confirm CHOICE Participation D May 2017 m* ".. Final Draft Budget & Rates to A&F Committee (5-10) Member Agency Formal Comments Member Agency Manager's DiscussionMl1 NICIPAL NM�Board Approval (5-17) — Final Budget DTRI WATTEISCT of - ORA N['s'E COUNTY 4/26/2017 2 M Total Expenses: $ 182,561,984 Water Purchases: $ 169,098,959 M Operating Expenses: CORE $ 8,254,004 CHOICE $ 1,199,448 CONSOLIDATED $ 9,453,452 Revenue , Reserves i FY2017-18 Rates Connection Charge Groundwater Charge $ 9,035,874 $ <417,578> 11.60/meter 435,050 Year -to -Year Change $ 29,502,485 $ 29,348,374 $ 405,102 -$409,757 -$ 4,655 $ 121,139 $ 125,794 $0.65 $ 83,410 4 <Communications Program> r School Program to Water Loss Reduction Program M Water Use Efficiency MUNICIPAL WAT R DISTRICT DF ORANGE COUNTY 4/26/2017 3 Water Use Efficiency $22.8 M (FY 2014-15) $25.2 M (FY 2015-16) $ 4.3 M (FY 2016-17) $ 4.2 M (FY 2017-18) Local Resource Program 8 $12.2 M (FY 2014-15) 8 $15.5 M (FY 2015-16) O $16.1 M (FY 2016-17) $16.6 M (FY 2017-18) TOTAL OUTSIDE FUNDING $20.8 Million MUNICIPRL, W_=o�sraicr OF ��- ORANGE COUNTY 4/26/2017 M MMWD WUE Credits MCompetative Grants �MWDOC Budget $45 5 X Operating Budget $40 $35 ;n FY2017-18 = 2.5X $30 0 $25 2 X $20 $15 ■ $10 m III $5 ■ ■ 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fiscal Year Ending M MUNICIJAL wnrEo of ORANGcauNr Full Service Untreated Volumetric Cost ($/AF) Tier 1 $594 $666 $695 4.4% Tier 2 $728 $760 $781 2.8% Full Service Treated Volumetric Cost ($/AF) $10 Tier 1 $942 $979 $1,015 3.7% Tier 2 $1,076 $1,073 $1,101 2.6% RTS Charge ($M) $153 $135 $140 3.7% Capacity Charge ($/cfs) $10,900 $8,000 $8,700 8.75% 4/26/2017 Me • • •� �• M $10 $24.76 s $20 O i $15 CL i d C $10 2$ i G1 Q $5 $3.81 $2.77 o $1.10 ■ $0.05 $0.00 Total MET -OC MET -OC Water MWDOC Core MWDOC Core MWDOC MWDOC Outside Water Sales Sales Increase Budget Budget Increase Consolidated Funding Budget Change 5 Rates that are shown in the budget are based on the current rate structure 100% Fixed — 0% Variable Retail Meter Basis ($11.60/meter) Groundwater Charge ($435,050) Utilizing methodology from last year's rate study 0 Metropolitan Focus Integrated Resource Plan Policy Issues LRP Funding SDCWA Lawsuit Budget & Rates OC Regional Reliability Regional & Local Projects Supply & System Reliability Q Water Use Efficiency 0 Water Emergency Response (WEROC) Public Affairs/Communications MUNICIPAL WATlP O19TRICT Government Affairs Activities OO Aa RANGE COUNTY 4/26/2017 0 MUNICIPAL waTEP CISTPICr OF ORANGE couNry 0 Metropolitan Focus Integrated Resource Plan Policy Issues LRP Funding SDCWA Lawsuit Budget & Rates OC Regional Reliability Regional & Local Projects Supply & System Reliability Q Water Use Efficiency 0 Water Emergency Response (WEROC) Public Affairs/Communications MUNICIPAL WATlP O19TRICT Government Affairs Activities OO Aa RANGE COUNTY 4/26/2017 0 Ili Two Potential Staff Additions Database Technician Government Affairs G Headcount Full Time Employees: 29 + 2 = 31 Vf FTE's: 35.64 + 1.78 = 37.42 MUNIOIPRL weTEP WMISTalcr OF �-ORANGE couNry March 2017 A&F Committee (3-8) —1St Draft Budget CHOICE Program Discussions Member Agency Manager's Discussion Member Agency Presentations as Requested 0 April 2017 A&F Committee Meeting (4-12) — 2nd Draft Budget Member Agency Formal Comments by April 15th Member Agency Manager's Discussion Elected Officials Meeting (4-26) Member Agency Presentations as Requested L'11' Confirm CHOICE Participation D May 2017 m* e.. Final Draft Budget & Rates to A&F Committee (5-10) Member Agency Formal Comments Member Agency Manager's Discussion MUNICIPAL Board Approval (5-17) — Final Budget "ATRI _A9 CT DF OPeNGE COUNTY 4/26/2017 7 DISCUSSION MUNICIPAL WATER CIISTRICT ORANGE CQIJ NTY WATER OI5TRICT or �, ORANGE COLINIY 4/26/2017 I Final Report Released —April 7 (not February) L Trailer Bill Language —April 7 f Friedman Bills (AB 1667, 1668, 1669) Rubio Bills (AB 869, 968, 1654) 1. Hearings on Assembly Water, Parks, & Wildlife — April 25 E%pfllVIT DCPAptFy IfHj #I0, of pall[nmla EXECUTIVE ORIXR 9.57.18 MAJaNO WATER CONSERVATION A CALIFORNIA WAY OF LIFE WHEREAS Call= has au8eron thrpugh uh.-ye d gh1 threafenpd the w� pp[ -0 a.1 d.- de tl g+�:�l-.1 prpducl.aln n many. runs and hnnnetl fah. gn'rinla anef 111, [• n I,nl n*aaar3 mltl WHEREAS C9ldo—ons reepc,tle0 w 1ne Ore-,rgnp by ppnse+vmy walx of Wrprrvuv 1-1.d Well. md, ng wale, ,,y.• w ppmmumt�ae by 23.9%Letween June 2015 nntl March 20 48 and -v ng enmgh waW tunng this pe p710 pr*We 8S million C.10., arns wi[Ir w Wf fr>ci y—r n:d WHEREAS anvere a• 71 eandrldn; and "", In many areas of lnc "am desp" r1��"•I w:nu`� irr9nipi".>,Ciuri wills 6rni:rvJ Jr,nk :rg wslH 6.,,A,,3 :r ne ni rnnr5,n,,,, danlnryfrud wala+' fpr egrkt;'I" pfodupn-alyd enwir tepmelenml hetMal, xW eevereAy- deplpd gmvntlweter pasms WHEREAS ar 9h, emrvdn�nrvs mxy peryel n aprrie. part W Iha s{a}e wap 20I7 ..d tleyand, as wnrtcr tenrpe+mules tl•wen try e4maLe eMlYfrga redoes "'W 5ppply hep in Zn nla,n snewpaek and result in p'Rr Spa cofgli7on5. and WHEREAS Inusu on, Ing d•oughl urndlllons and ou- cna.•rging climate requae Californm Ip move oeypna mmporary cr�rergor_y nleuy.nl inna.0 yes a�wf aduFrl pefmanenl c4.,gN, ra "e walcr mart wrely arvd m oeCo c for more freq,tnt afxl pers'--sten! pends pf li�niletl wale, Supply, and WHEREAS increamllg long-mml water cn rval-on among Ca111nrnlsns Imp+ormg wa!ef u.5e eIff—nt, widrin IN! s[a[e's —Innunilxaa enJ eyi wulluiel prpdri'1a and SEmne]Ir,an: n0 -1 and rea anal drMhl p18nowna aro chtidal la Cplifnrn,:r. r --n- 10 1,a ,,,1 snag nlimrrn mange, and ME–] MUNICIPAL w—. olsrRlcr OF �--- ORANGE couNry Elected Officials Forum - Jan 2017 MUNICIPAL WATER OI5TRICT of ORANGE! COUNTY 4/26/2017 a Draft report issued; comments & draft submitted to Governor's Office (January 201h) Final report to be published late January/early February Some initial proposals were modified with public input (Annual 5 -year analysis) Peculiar approach to demonstrated planning problem MUNICIPAL weTEo Elected Officials Forum - Jan 2017 o�sTaicr OF -- ORANGE COUNTY 2014 • Jan 2014 — Emergency Proclamation 1983 Urban Water Management Plan • Apr 201 Emergency Proclamation 1' 4 - g Y 2009 SBX7-7 zo x 2020 I Sep 2014 — Executive Order B-26-14 2015 Apr 2015 -Executive Order 2017 ■ Implementation of ■ B-29-15 ■ Executive Order ■ B-37-16 ■ 2o16 Nov 2o15 — Executive Order 2020 ■ ■ B-36-15 ■ ■ ■ • May 2o16 — Executive Order ■ B -37-i6 ■ 2017 2025 I Elected Officials Forum - Jan 2017 4/26/2017 10 �_ Voluntary 10% reduction a. �¢" Mandatory 25%, rl'! then 8%-36% reductions ILM � `Onetime Stress Test using ° 3 very dry years +� N a, o � Efficiency v � Current plus 1 � Refinements to � � � Targets � Dry Year � 5 Year Planning i aJ � aElected Officials Forum Jan 2017 i Final Report Released —April 7 (not February) I Trailer Bill Language — April 7 I Friedman Bills (AB 1667, 1668, 1669) ta Rubio Bills (AB 869, 968, 1654) 0 Hearings on Assembly Water, Parks, & Wildlife — April 25 MUNICIPAL w DISTRICT GF ORANGE COUNTY 4/26/2017 11 4/26/2017 • Covers all legislative areas from Executive Order B-37-16 Compliance Methods to Meet New Standards Allows SWRC. to set interim standards • Allows only one mechanism, defined by the State Water Resources Control Board (SWRCB) via emergency and permanent regulations, with no oversight from the Legislature and no CECA review • Enforcement • Imposes SWRCB cease and desist order processes and misdemeanor penalties for failure to meet ANY efficiency planning targets Water Rights • Specifies that state efficiency standards supersede water rights, undermining over a century of precedent • Drought Planning • Extends the duration of State mandates during a declared emergency to one year (vs. 270 days) • Drought Response • Requires multiple arbitrary stages, set by the SWRCB, that may not reflect local conditions; requires drought emergency declaration at a certain undefined stage • Water Infrastructure Investments • Conservation requirements are applied to all water supplies, stranding and disincentivizing resiliency investments 0 12 • AB 1668 makes various updates to the Urban Water Management Plans and Water Shortage Contingency Plans: • Assigns six shortage levels (instead of allowing a supplier to determine their own shortage level) • Water shortage emergency declaration is required at "level 4" which is not defined • Requires DWR to prepare an annual report and submit it to determination of noncomplian and possible enforcement • AB 1669 Urban Water Conservation Standards and Use Reporting: to establish or chane interim standards and long-term goals for urban water use and conservation • Silent on how the regulations could treat recycled water, but appear to leave the development of the standard solely up to the SWRCB .0 • Extends drought emergency regulations adopted by the SWRCB from 270 days to one year , • AB 869 requires recycled water use to be considered equivalent to 0 0 other water use efficiency measures and prohibits water retailers from having to reduce the amount of recycled water it produces/uses at any time • AB 968 and AB 1654 combine to "Make Water Conservation a California Way of Life" • AB 968 allows local agencies to establish long-term goals, targets and standards; and allows for multiple compliance methods • AB 1654 allows local suppliers to develop and report annual supply/demand assessment; develop and implement their own water shortage contingency plans; maintains wate ts; and keeps the authority with the Legislature to establish or change long-term goals, targets or standards 4/26/2017 13 April 251h Assembly Water, Parks and Wildlife Committee Hearing — Special Order of Business: Making Conservation a Way of Life 8 related bills heard focus on Friedman and Rubio legislation All legislation was passed out of committee with direction for all parties to work cooperatively towards agreed upon language Power without accountability Legislature vs. Local Officials vs. L Too much control sVA This is not about opposing conservation or water use efficiency Emergency type regulatory control granted to SWRCB Process Trailer bill process removes legislative involvement Potential violation of water rights Efficiency standards supersede water rights MUNICIPAL W DISTRICT OF ORANGE COUNTY 4/26/2017 14 I MUNIGIRAL ��rs WATT=p DISTRICT OF \ ORANGE COUNTY This is not about opposing conservation or water use efficiency Emergency type regulatory control granted to SWRCB Process Trailer bill process removes legislative involvement Potential violation of water rights Efficiency standards supersede water rights MUNICIPAL W DISTRICT OF ORANGE COUNTY 4/26/2017 14 Respond to alerts and calls -to -action as the process continues Adopt position of support to Rubio Legislation O Sign onto our Coalition Letters and/or send your own Keep us informed Communicate your agency's position O What are your concerns? Is there something you really like? Orange County as a whole should strive to be consensus -seeking through this process DISCUSSION I werEP olsrRlcr OF ORANGE COUNTY MUNICIPAL WATER OI5TRICT OF ORANGE COUNTY 4/26/2017 15 Expanded Information Campaign ► Board Officers' Expanded Public Outreach Program proposes to broaden scope of information campaign beyond San Diego County Expand into other parts of MWD service area including Orange and Ventura Counties and Inland Empire Key activities: Work with MWD program on key issues and messages Development of information materials Meetings and communications with elected officials Media relations Outreach to civic, business and opinion leaders who care about a reliable water supply and the economy if "1 3 Letters Jan 11, 2017 Out -of Control Spending Jan 26, 2017 Overcharging Ratepayers Feb 28, 2017 Fiscal & Governance Issues Requests for Face -to -Face Meetings I 4/26/2017 16 MUNICIPAL WATER OISTRICT OF ORANGE COUNTY "1 3 Letters Jan 11, 2017 Out -of Control Spending Jan 26, 2017 Overcharging Ratepayers Feb 28, 2017 Fiscal & Governance Issues Requests for Face -to -Face Meetings I 4/26/2017 16 Board Officers' Recommendation Authorize the General Manager to amend the professional services agreement with Southwest Strategies to extend the agreement through June 30, 2018 and to increase the total not -to -exceed amount to $875,505, an increase of $476,505. Purpose Achieve near-term and long-term changes at MWD by informing and educating local elected officials Engage public officials, civic and opinion leaders throughout MWD's service area Get answers to the questions the Water Authority's MWD Delegates have been asking Bring about changes in MWD's practices so that it is accountable and sustainable Require transparency in MWD's business practices and decision-making Ultimately, resolve disputes and be part of a sustainable MWD 34 Increased Professional Services Areement by 476,505 to $875.#505 0 SDCWA Stated Reasons a Effective MWD Communicatio Program SDCWA v MWD Lawsuit Oral Arguments May 1011 Sacramento Activity (?) • MWD Supply Projects 4/26/2017 17 In general: MWD has out -of -control spending, overcharges ratepayers, is not transparent and is not fiscally accountable MWD has overcharged ratepayers by $847 million (2012-2015) f budget demanr estimates versus actual sales during drought MWD has unbudgeted spending of $1.2 billion over 4 -years Palo Verd( Property @ $264M, Turf Program @ $350M, Delta Islands @ $175M MWD has no Long Range Financial Plan 10 -year Financial Plan h..-.ery 2 -year budget 171 Bond Official Statements MWD issued $900 million in new, unplanned debt Refinancing @ low rates, PayGo versus Debt Issues "Ask your Water District or Provider to ask their MWD Representative for further details." Absolutely! Let us know if you are contacted 0 If you have any questions we are available for discussions at any time MUNICIPAL WATZP DISTRICT OF ORANGE 36 co U NT V 4/26/2017 i DISCUSSION MUNICIPAL WATER CIISTRICT ORANGE C06J NTY MUNICIPAL WATER DISTRICT OF O.ANGE COUNTY 4/26/2017 19 MU NICIRAL 441k IWATER 019 TRICT DORANF uaumG GOLJ A: 4/26/2017 20 Meeting Date: Subject: ATTACHMENTS: AGENDA REPORT May 9, 2017 Meetings from May 10, 2017 - July 31, 2017 Name BOD - Activities Calendar.pdf Description: Backup Material ITEM NO. 13.1 Type: Backup Material Board of Directors Activity Calendar Event Date Time Attendance by: May 2017 LAFCO Wed, May 10 8:OOAM Nederhood (As Needed) Yorba Linda Planning Commission Wed, May 10 6:30PM Hawkins (As Needed) YL City Council Tue, May 16 6:30PM Hall MWDOC Wed, May 17 8:30AM Nederhood OCWD Wed, May 17 5:30PM Jones Board of Directors Workshop Meeting Tue, May 23 4:OOPM Jones (All Directors PA) Board of Directors Regular Meeting Tue, May 23 6:30PM OCSD Wed, May 24 6:OOPM Hawkins/Jones Yorba Linda Planning Commission Wed, May 24 6:30PM Hawkins (As Needed) Santa Ana River Watershed Conference Thu, May 25 9:OOAM Jones/Nederhood Interagency Committee Meeting with MWDOC and OCWD Thu, May 25 4:OOPM Miller/Nederhood District Offices Closed Mon, May 29 7:OOAM June 2017 Wed, Jul 12 6:30PM Hawkins (As Needed) WACO Fri, Jun 2 7:30AM Jones (All Directors PA) Yorba Linda City Council Tue, Jun 6 6:30PM Miller MWDOC Wed, Jun 7 8:30AM Nederhood OCSD Operations Committee Wed, Jun 7 5:OOPM Hawkins OCWD Wed, Jun 7 5:30PM Jones Board of Directors Workshop Meeting Thu, Jun 8 4:OOPM Hawkins (As Needed) Joint Committee Meeting with City of Yorba Linda Mon, Jun 12 4:OOPM Miller/Hawkins Board of Directors Regular Meeting Tue, Jun 13 6:30PM 5/5/2017 10:36:42 AM LAFCO Wed, Jun 14 8:OOAM Nederhood (As Needed) Yorba Linda Planning Commission Wed, Jun 14 6:30PM Hawkins (As Needed) OC Water Summit Fri, Jun 16 7:30AM Jones/Nederhood YL City Council Tue, Jun 20 6:30PM Nederhood MWDOC Wed, Jun 21 8:30AM Nederhood OCWD Wed, Jun 21 5:30PM Jones Board of Directors Regular Meeting Tue, Jun 27 6:30PM OCSD Wed, Jun 28 6:OOPM Hawkins/Jones Yorba Linda Planning Commission Wed, Jun 28 6:30PM Hawkins (As Needed) ISDOC Thu, Jun 29 11:30AM Hawkins (All Directors PA) July 2017 District Offices Closed Tue, Jul 4 7:OOAM Yorba Linda City Council Tue, Jul 4 6:30PM Hall MWDOC Wed, Jul 5 8:30AM Nederhood OCSD Operations Committee Wed, Jul 5 5:OOPM Hawkins OCWD Wed, Jul 5 5:30PM Jones WACO Fri, Jul 7 7:30AM Jones (All Directors PA) CSDA SDLA Conference Sun, Jul 9 5:OOPM CSDA SDLA Conference Mon, Jul 10 8:30AM CSDA SDLA Conference Tue, Jul 11 8:30AM Board of Directors Regular Meeting Tue, Jul 11 6:30PM LAFCO Wed, Jul 12 8:OOAM Nederhood (As Needed) CSDA SDLA Conferece Wed, Jul 12 8:30AM Yorba Linda Planning Commission Wed, Jul 12 6:30PM Hawkins (As Needed) YL City Council Tue, Jul 18 6:30PM Hawkins MWDOC Wed, Jul 19 8:30AM Nederhood OCWD Wed, Jul 19 5:30PM Jones Board of Directors Regular Meeting Tue, Jul 25 6:30PM OCSD Wed, Jul 26 6:OOPM Hawkins/Jones Yorba Linda Planning Commission Wed, Jul 26 6:30PM Hawkins (As Needed) Interagency Committee Meeting with MWDOC and OCWD Thu, Jul 27 4:OOPM Miller/Nederhood PA = Preauthorized 5/5/2017 10:36:42 AM ITEM NO. 14.1 AGENDA REPORT Meeting Date: May 9, 2017 Subject: OC Water Summit - June 16, 2017 STAFF RECOMMENDATION: That the Board of Directors approve Director attendance at these events if desired. ATTACHMENTS: Name Description: Type: OC Water Summit.pdf Backup Material Backup Material .M — _ r■ . PROGRAM & SPEAKERS INDIVIDUAL TICKET - $130* Ticket includes continental breakfast, lunch, self -parking and summit materials. `Ticket price will increase to $150 beginning June 2, 2017 WELCOME STEPHEN R. SHELDON, Director, Orange County Water District JEFFERY M. THOMAS, Director, Municipal Water District of Orange County ON THE WATERFRONT — Local Water Forecast and the Four Water Revolutions FRITZ COLEMAN, Weathercaster, NBC4 DAVID SEDLAK, PH.D., University of California, Berkeley; Author of "Water 4.0: The Past, Present, and Future of the World's Most Vital Resource" MINE! MINE! MINE! — Finding Solutions to Address Aging Infrastructure THE HONORABLE RYAN ZINKE, Secretary of the U.S. Department of Interior (Invited) FORMER MEMBER, the Delta Stewardship Council (Invited) JEFFREY KIGHTLINGER, General Manager, Metropolitan Water District of Southern California DALE KASLER, Reporter, Sacramento Bee (Invited) UNDER THE SEA — Desalination in Calif ornit THE HONORABLE HELENE SCHNEIDER, Mayor, City of Santa Barbara DAVID J. STOLDT, General Manager, Monterey Peninsula Water Management District RICH NAGEL, General Manager, West Basin Municipal Water District THE ONE THAT ALMOST GOT AWAY For a more detailed program, — Stormwater Capture in Southern California or more information, visit COLONEL KIRK E. GIBBS, Commander, Los Angeles District www.00WaterSummit.com U.S. Army Corps of Engineers or call (714) 378-3202 FRANK GEHRY, World-renowned Architect, Gehry Partners, LLP (Invited) CASTING A WIDER NET — CA Water Game Changers Featuring Master of Ceremonies THE HONORABLE LAURA FRIEDMAN, California State Assembly, NBC4 Weathercaster District 43 (Invited) FRITZ COLEMAN O&YO4 THE HONORABLE BLANCA E. RUBIO, California State Assembly, District 48 (Invited) MARCIE EDWARDS, Former General Manager of the Los Angeles Department of Water and Power and the City of Anaheim JENNIFER WEST, Managing Director, WateReuse California (Invited) LUNCHEON SESSION HOSTED BY — Let There Be Water SETH M. SIEGEL, N.Y. Times Bestselling Author of "Let There Be Water: �isneglanda Israel's Solution for a Water Starved World" 9TFR pjSS Program Subject to Change