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HomeMy WebLinkAbout2017-08-08 - Board of Directors Meeting Agenda Packet ra Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, August 8, 2017, 6:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL J. Wayne Miller, President Al Nederhood, Vice President Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director 4. ADDITIONS/DELETIONS TO THE AGENDA 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports 6. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three minutes. 7. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 7.1. Minutes of the Board of Directors Workshop Meeting Held June 8, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of Board of Directors Regular Meeting Held June 13, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of$415,168.09. 7.4. Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2016/17 Recommendation: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2016/17. 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. Authorized Officers for Investments Held at Pershing Recommendation: That the Board of Directors adopt Resolution No. 17-27 authorizing the General Manager, Assistant General Manager and Finance Manager to act on behalf of the District relating to District investments held at Pershing, LLC and rescinding Resolution No. 14-12. 8.2. AB 1000 - Water Conveyance: Use of Facility With Unused Capacity (Nederhood) Recommendation: That the Board of Directors adopt an OPPOSE position and instruct the General Manager to communicate the position of the Yorba Linda Water District to the Santa Margarita Water District, and to empower the President or the General Manager to sign any coalition letters in opposition to AB 1000. 8.3. Adjusting Time of Regular Meetings and Establishing Time for Adjournment (Miller) Recommendation: That the Board of Directors consider adjusting the time of regular meetings and establishing a set time for adjournment. 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. Update of Procurement and Purchasing Policy 9.2. Timeline for Updating Strategic Plan (Nederhood) 9.3. Development of Water Shortage and Drought Response Plan (Jones) 9.4. Comparison of Retail Water Rates (Miller) 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) • Minutes of meeting held July 27, 2017 at 4:00 p.m. • Next meeting scheduled September 28, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) • Minutes of the meeting held June 12, 2017 at 4:00 p.m. will be provided when available. • Next meeting scheduled September 18, 2017 at 4:00 p.m. at YL City Hall. 11.3. Joint Agency Committee with City of Placentia (Miller/Nederhood) • Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS 12.1. MWDOC/OCWD Joint Planning Committee - July 26, 2017 (Nederhood/Jones) 12.2. OCSD Board - July 26, 2017 (Hawkins) 12.3. ISDOC Executive Committee - August 1, 2017 (Nederhood) 12.4. YL City Council - August 1, 2017 (Jones) 12.5. MWDOC Board - August 2, 2017 (Nederhood) 12.6. OCWD Board - August 2, 2017 (Jones) 12.7. WACO - August 4, 2017 (Jones/Miller/Nederhood) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from August 9 - October 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. YL Mayor's Prayer Breakfast - September 14, 2017 Recommendation: That the Board of Directors approve Director attendance at this event if desired. 15. ADJOURNMENT 15.1. The next Regular Board of Directors Meeting will be held Tuesday, August 22, 2017. Closed Session (if necessary) will begin at 5:30 p.m. and regular business at 6:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 7.1 AGENDA REPORT Meeting Date: August 8, 2017 Subject: Minutes of the Board of Directors Workshop Meeting Held June 8, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name: Description: Type: 2017-06-08 - Minutes - BOD.doc Minutes Minutes 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, June 8, 2017, 4:00 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 4:01 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Marc Marcantonio, General Manager Al Nederhood, Vice President Steve Conklin, Engineering Manager Andrew J. Hall, Director John DeCriscio, Operations Manager Phil Hawkins, Director Gina Knight, HR/Risk and Safety Manager Brooke Jones, Director Delia Lugo, Finance Manager Art Vega, Information Technology Manager Annie Alexander, Executive Secretary Cindy Botts, Management Analyst ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Brett Barbre, Director, MWDSC and MWDOC 4. PUBLIC COMMENTS Ms. Pat Nelson (resident) commended the Board and staff for their efforts. She also commented on the Ad Hoc Citizens Advisory Committee's recommendations to the Board. Director Brett Barbre commented on the importance of reserves, other agencies reserve levels, and benefits in relation to rate stabilization. Minutes of the YLWD Board of Directors Workshop Meeting Held June 8, 2017 at 4:00 p.m. 1 5. DISCUSSION ITEMS 5.1. Revenues and Reserves for FY 2018 Ms. Delia Lugo outlined the topics to be discussed and noted that representatives from Raftelis would be present at the next workshop meeting to demonstrate the financial model. Ms. Lugo then reviewed assumptions for FY17 total volumetric revenue and the FY18 budget. Discussion ensued regarding demand recovery for the previous few months, projected demand recovery through the end of June, variances between water production and demand, benefits of advanced metering infrastructure, and budgeting for sewer related repairs in the east end of the District's service area. Ms. Lugo provided an overview of historical and forecasted water purchases and demand recovery. Discussion followed regarding the impact of potential increased demand recovery during FY18 and exploration of future reserve levels utilizing the financial model. Ms. Lugo then reviewed projected water and sewer combined operating/non-operating revenue for FY18 and the same for water only. The Board and staff discussed the projected decrease in property tax revenue for FY18 and amounts billed versus collected. Director Barbre commented on his previous work experience at the County's Treasurer-Tax Collector's Office, the average percentage of uncollected property taxes, and the County's method for assessment. Discussion continued regarding anticipated decrease in water demand due to the City's vacation of certain landscape maintenance easements, projected decrease in other operating revenue, and anticipated revenue associated with the phased development of Esperanza Hills. Ms. Lugo provided a historical comparison of total water revenues and current water usage trends. At the request of a member of the Board, Director Barbre commented on the MWDSC's process for projecting water sales. Ms. Lugo reviewed total water revenues projected for FY17 and budgeted for FY18 and the composition of"other" water revenue. Ms. Lugo then provided on overview of projected sewer operating/non- operating revenue for FY18, a historical comparison of total sewer revenues, total sewer revenues projected for FY17 and budgeted for FY18, and the composition of"other" sewer revenue. Minutes of the YLWD Board of Directors Workshop Meeting Held June 8, 2017 at 4:00 p.m. 2 Ms. Pat Nelson (resident) commented on the cost for replacing the District's sewer collection system and the need for an associated reserve. Director Barbre commented on the benefits of transferring the City of Yorba Linda's sewer collection system to the District. Mr. Terry Harris (resident) commented on recommendations provided by the Ad Hoc Citizens Advisory Committee (AHCAC) related to rates, reserves and refunds. Ms. Lugo outlined a timeline for review and adoption of the District's reserve policy for FY18. She also summarized the purpose of reserves, reserve fund types, the importance of establishing minimum/maximum reserve levels, and the roll of reserves during the bond rating process. Ms. Lugo then reviewed the District's current reserve types and levels and those recommended by Raftelis in the 2015 rate study and by Fieldman Rolapp, the District's financial advisors. This included discussion regarding the District's current bond rating, bond rating goals associated with both sets of recommendations, and the District's unfunded liabilities. Director Barbre commented on the benefits of paying down Post Employment Benefit (OPEB) liabilities. Discussion ensued regarding paying down the District's OPEB liability versus funding an Employee Liability Reserve, the District's current and projected total reserve amounts for FY17, the management of reserve funds in relation to payment of significant expenses, and the format of the District's financial statements. Mr. Terry Harris (resident) commented on the District's reserve levels and the AHCAC's related recommendations. Further discussion regarding the format of the District's financial statements and applicability of a Risk Management Reserve followed. Ms. Julia Schultz (resident) commented on the District's management of capital improvement projects, the format of the District's financial statements, and the benefits of establishing a Rate Stabilization Reserve. Discussion continued regarding benefits provided by having a Rate Stabilization Reserve and issuing bonds for construction of the Fairmont Booster Pump Station Upgrade Project. Ms. Pat Nelson (resident) commented on the District's Capital Improvement Plan, recommended reserve levels, and benefits associated Minutes of the YLWD Board of Directors Workshop Meeting Held June 8, 2017 at 4:00 p.m. 3 Minutes of the YLWD Board of Directors Workshop Meeting Held June 8, 2017 at 4:00 p.m. 4 with establishing a Rate Stabilization Reserve. She also spoke against the issuance of refunds. Ms. Lugo finished reviewing the District’s current reserve types. Ms. Cindy Botts requested feedback from the Board regarding the draft reserve policy. Further discussion regarding the current and two sets of recommended reserve levels, updating the District’s strategic plan, establishing a Rate Stabilization Reserve, and desired bond ratings followed. 6. ADJOURNMENT 6.1. The meeting was adjourned at 6:33 p.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.2 AGENDA REPORT Meeting Date: August 8, 2017 Subject:Minutes of Board of Directors Regular Meeting Held June 13, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2017-06-13_-_Minutes_-_BOD.doc Minutes Minutes Minutes of the YLWD Board of Directors Regular Meeting Held June 13, 2017 at 6:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, June 13, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:30 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Steve Conklin, Engineering Manager Al Nederhood, Vice President John DeCriscio, Operations Manager Andrew J. Hall, Director Gina Knight, HR/Risk and Safety Manager Phil Hawkins, Director Delia Lugo, Finance Manager Brooke Jones, Director Art Vega, Information Technology Manager Annie Alexander, Executive Assistant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Tom Lindsey, Councilmember, City of Yorba Linda 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports None. 6. PUBLIC COMMENTS None. Minutes of the YLWD Board of Directors Regular Meeting Held June 13, 2017 at 6:30 p.m. 2 7. CONSENT CALENDAR Director Hawkins made a motion, seconded by Director Jones, to approve the Consent Calendar. Motion carried 5-0 with Director Hall abstaining from Item No. 7.2. as he was not present at the meeting. 7.1. Minutes of the Board of Directors Regular Meeting Held March 1, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Regular Meeting Held March 14, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,230,640.28. 7.4. Terms and Conditions for Water Service with Calvary Chapel of Yorba Linda Recommendation: That the Board of Directors approve the Terms and Conditions for Water Service with Calvary Chapel of Yorba Linda, Job No. 201717. 7.5. Revised Declaration of Restrictive Covenants with Toll CA III, LLC for Tract 17654 Recommendation: That the Board of Directors authorize the President and Secretary to execute the revised Declaration of Restrictive Covenants with Toll CA III, LLC for Tract 17654. 8. ACTION CALENDAR 8.1. Proposed Amendments to Independent Special Districts of Orange County (ISDOC) Bylaws Mr. Steve Conklin explained that ISDOC was conducting a vote of regular special district members on proposed amendments to the association’s bylaws, the primary purpose of which was to add language pursuant to state requirements and protect members against potential liability. ISDOC’s Executive Committee previously discussed this matter on multiple occasions and unanimously approved the proposed revisions and authorized a vote of the membership. Minutes of the YLWD Board of Directors Regular Meeting Held June 13, 2017 at 6:30 p.m. 3 Director Nederhood made a motion, seconded by Director Jones, to approve the proposed amendments to ISDOC’s bylaws and authorize the President or alternate designee to sign the official ballot. Motion carried 5-0. 8.2. Proposed Increased Assessments Affecting District Properties Located in Local Landscaping Zone L-1B of the City of Yorba Linda Street Lighting and Landscaping Maintenance District Ms. Delia Lugo explained that in March 2016, the Board voted in favor of proposed increased assessments affecting five parcels owned by YLWD (Elk Mountain BPS/Reservoir) located in Zone L-1B of the Yorba Linda Street Lighting and Landscaping Maintenance District. Following tabulation of the ballots at the City’s public hearing, it was determined there was a majority protest and no increase to the proposed assessments would be allowed. At the request of several of the property owners in this zone, the City Council then authorized a process whereby a petition could be submitted requesting a revote. Such petition was submitted and the re-balloting process was granted following Council approval of a revised location maintenance plan. The District’s parcels involved in the revote process have a $0.00 balloted assessment amount. The Board and staff discussed the necessity of submitting the ballots as the vote was weighted and the parcels were considered exempt. Councilmember Lindsey stated that this was his understanding. Following brief discussion, it was determined that District staff would contact City staff to determine responsibility for maintaining the landscape area in front of Elk Mountain Reservoir. Councilmember Lindsey noted that the Council does not vote on assessment ballots received for City owned parcels. It was the consensus of the Board not to take action on this item. 9. DISCUSSION ITEMS 9.1. Capital and Repair/Replacement Budgets and Asset Management Plan (AMP) Director Jones explained that this topic was taken from a section of recommendations provided by the Ad Hoc Citizens Advisory Committee (AHCAC). He then invited AHCAC members present to comment. Mr. Terry Harris (resident and former AHCAC member) stated that the intent of this section was to improve the transparency and clarity of District capital and repair and replacement (R&R) expenditure reporting. He also noted that the committee was in favor of updating the AMP. Director Jones asked staff to report on their efforts related to this section. Minutes of the YLWD Board of Directors Regular Meeting Held June 13, 2017 at 6:30 p.m. 4 Ms. Lugo stated that for the last few months, staff had been providing the Board with a summary report of Capital Improvement Plan (CIP) and capital outlay expenditures from reserves. Staff is also looking at other water districts quarterly financial reports in order to enhance YLWD’s presentation of this information. Reserve expenditures for individual capital projects are currently tracked internally and reconciled with the general ledger at the end of each month. Staff is looking to incorporate this detailed information in future quarterly financial reports as well. President Miller commented on his suggested modifications to the District’s periodic financial reports related to reserves. Ms. Lugo noted she had conference calls scheduled the next day with the District’s auditors and Fieldman Rollap to discuss the potential comingling of currently segregated reserve funds. She plans to brief the board on the results of these discussions at the next budget workshop meeting. The Board and staff discussed updating the AMP, the recurrence of subsequent updates, integrating the AMP with CMMS, and developing an overall strategic plan. Mr. Harris clarified that it was the AHCAC committee’s desire the AMP be updated on a regular basis and utilized to evaluate the District’s performance and guide operational priorities. The Board and staff then discussed staffing requirements needed to update the AMP, the purpose of recently completed and active CIP projects, effectively communicating the District’s activities and finances to the public, and the complexity of YLWD’s distribution system as compared to similar agencies. Ms. Julia Schultz (resident) remarked on the difficulty of comparing water districts to one another, and evaluating the cost effectiveness of public communication/education efforts. The Board and staff also discussed historical and current trends in the number and types of requests for public records received by the District. Vice President Nederhood requested that a monthly report containing this information be provided to the Board in order to evaluate the need for future enhancements to the District’s website. Mr. Harris thanked the Board for their efforts in relation to addressing this section of the AHCAC’s recommendations and requested they do the same for the remainder. He also offered his assistance with future strategic initiatives. Minutes of the YLWD Board of Directors Regular Meeting Held June 13, 2017 at 6:30 p.m. 5 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports The Directors reported on their attendance at the following event: Santa Ana River Watershed Conference – May 25, 2017 (Jones/Nederhood) 10.2. General Manager's Report Mr. Conklin asked each of the managers to report on activities within their respective departments. Ms. Lugo reported on the status of the interim audit and noted that staff was in the process of updating the District’s financial model in preparation for the next budget workshop. Mr. Art Vega explained that due to unforeseen circumstances, the upgrade to the District’s phone system would be delayed until the next fiscal year. This change will be reflected in the draft FY 2018 budget. He also reported that the contract for CMMS consulting services had been finalized and the first meeting was held the day prior. Ms. Gina Knight announced the number of applications received to date for the position of Assistant General Manager and described the types of requests for public records recently received. Mr. Conklin stated that interviews for the Associate Engineer position would be conducted the following week and reported on the status of various construction projects. He and Mr. John DeCriscio then informed the Board of staff efforts related to a pipeline tie-in. Vice President Nederhood requested that information regarding the status of these projects be posted on the District’s website. 10.3. General Counsel’s Report Mr. Andrew Gagen briefly shared publicly available information related to the status of pending litigation. 10.4. Future Agenda Items and Staff Tasks None. Minutes of the YLWD Board of Directors Regular Meeting Held June 13, 2017 at 6:30 p.m. 6 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) Minutes of the meeting held May 25, 2017 at 4:00 p.m. were provided in the agenda packet. President Miller, Vice President Nederhood, and Mr. Conklin commented on topics discussed during the meeting. Next meeting is scheduled July 27, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) Minutes of the meeting held June 12, 2017 will be provided when available. Ms. Julia Schultz (resident) commented on reservoir construction requirements for the Esperanza Hills housing development. Director Hawkins spoke regarding the benefits of the joint agency committee meetings with the City. President Miller reviewed some of the topics discussed during the most recent meeting. Councilmember Lindsey also remarked on the benefits of these meetings and requested continued guidance from the District in relation to water use efficiency. He indicated the City would be supportive of District efforts in this regard and encouraged public attendance at these meetings. Vice President Nederhood commented on the benefits of establishing a rate stabilization reserve. Ms. Schultz (resident) commented on her experience attending these meetings and asked for an overview of the Governor’s long- term water conservation framework. The Board summarized the main points of the plan. Next meeting yet to be scheduled. 11.3. Interagency Committee with City of Placentia (Miller/Nederhood) Next meeting yet to be scheduled. Minutes of the YLWD Board of Directors Regular Meeting Held June 13, 2017 at 6:30 p.m. 7 12. INTERGOVERNMENTAL MEETINGS The Directors reported on their attendance at the following meetings. 12.1 OCWD Board – May 24, 2017 (Jones) 12.2 OCSD Board – May 24, 2017 (Hawkins) 12.3. WACO – June 2, 2017 (Hawkins/Jones/Nederhood) 12.4. YL City Council – June 6, 2017 (Hawkins) 12.5. MWDOC Board – June 7, 2017 (Nederhood) 12.6. OCSD Operations Committee – June 7, 2017 (Hawkins) 12.7. OCWD Board – June 7, 2017 (Jones) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from June 14 – August 31, 2017 The Board reviewed the activity calendar and made no changes. 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. CASA Annual Conference – August 22-24, 2017 Director Hall made a motion, seconded by Director Miller, to approve Director attendance at this event if desired. Motion carried 5-0. 15. ADJOURNMENT 15.1. The meeting was adjourned at 8:39 p.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.3 AGENDA REPORT Meeting Date: August 8, 2017 Budgeted:Yes To:Board of Directors Cost Estimate:$415,168.09 Funding Source:All Funds From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Reviewed by Legal:N/A Prepared By:Richard Cabadas, Accounting Assistant I CEQA Compliance:N/A Subject:Payments of Bills, Refunds, and Wire Transfers SUMMARY: Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors’ approval. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $415,168.09. DISCUSSION: The items on this disbursement list includes: A wire of $4,679.24 to So. California Edison for June 2017 electricity charges at Miraloma Ave. The balance of $136,899.50 is routine invoices. The Accounts Payable check register total is $141,578.74; Payroll No. 15 total is $273,589.35; and the total of all listed disbursements for this agenda report is $415,168.09. A summary of the disbursements 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_0808.pdf Cap Sheet Backup Material CkReg080817.pdf Check Register Backup Material 17_CC_0808.pdf Credit Card Summary Backup Material Summary of Disbursements August 08, 2017 CHECK NUMBERS & WIRE: Computer Checks 70129—70210 $ 136,899.50 ____________ $ 136,899.50 WIRE: W072717 So. Cal Edison $ 4,679.24 _____________ $ 4,679.24 TOTAL OF CHECKS & WIRES $141,578.74 PAYROLL NO. 15: Direct Deposits $ 171,423.46 EFT Payment $ 36,176.92 Third Party Checks 6737—6748 $ 16,673.61 Payroll Taxes $ 49,315.36 $ 273,589.35 TOTAL OF PAYROLL $273,589.35 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $415,168.09 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF AUGUST 08, 2017 ==================================================================. Check No.Date Vendor Name Amount Description 70145 08/08/2017 ADAM BERGIN 63.08 CUSTOMER REFUND 70131 08/08/2017 AKBER ZAIDI 219.81 CUSTOMER REFUND 70161 08/08/2017 Alfredo Vargas 259.52 TRAVEL EXPENSE - ESRI CONFERENCE 70135 08/08/2017 ALI NAMAZI 106.25 CUSTOMER REFUND 70209 08/08/2017 America's Instant Signs 323.25 BUILDING REPAIR PARTS 70143 08/08/2017 ANDREA PIKE 188.43 CUSTOMER REFUND 70162 08/08/2017 Aqua-Metric Sales Co.8,846.01 WAREHOUSE STOCK & VALVE ASSEMBLY PARTS 70163 08/08/2017 Aramark 376.00 UNIFORM SERVICE 70164 08/08/2017 AT & T - Calnet3 3,384.71 ATT CALNET3 70165 08/08/2017 Brithinee Electric 3,479.25 HIDDEN HILLS PUMP STATION REPAIR PARTS 70146 08/08/2017 BRITTANIA CLARK 143.75 CUSTOMER REFUND 70210 08/08/2017 CalCard US Bank 14,272.20 CREDIT CARD TRANSACTIONS FOR JULY 2017 70166 08/08/2017 California Department of Motor Vehicle 20.00 DOCUMENT REQUEST - SR19C 70152 08/08/2017 CHONA PABUAYA 166.10 CUSTOMER REFUND 70154 08/08/2017 CHRIS RUNNELLS 210.65 CUSTOMER REFUND 70167 08/08/2017 City Of Placentia 1,329.40 (5) ENCROACHMENT PERMITS 70168 08/08/2017 Cogsdale Services Corporation 7,505.00 GP/CSM UPGRADE 70169 08/08/2017 Costco 120.00 COSTCO MEMBERSHIP 2017/2018 70170 08/08/2017 Culligan of Santa Ana 2.85 EQUIPMENT PE SOFTENER 70147 08/08/2017 DAVE HUME 41.60 CUSTOMER REFUND 70173 08/08/2017 Dean Criske Trucking 1,948.73 ROAD MATERIAL 70171 08/08/2017 Dell Marketing L.P.56.56 HARDWARE SUPPLIES 70172 08/08/2017 Dion & Sons, Inc.4,888.51 MYSELLA OIL - YLWD FLEET 70151 08/08/2017 DIRT WORKS ENGINEERING 75.00 CUSTOMER REFUND 70174 08/08/2017 Fairway Ford Sales, Inc.688.05 VEHICLE MAINTENANCE - UNIT #186 70175 08/08/2017 Federal Express 32.79 SHIPPING FEES 70176 08/08/2017 Fleet Services, Inc 130.27 VEHICLE SUPPLIES - UNIT #215 70177 08/08/2017 Freddie Ojeda 105.00 CERTIFICATE REIMBURSEMENT - T4 70178 08/08/2017 Haaker Equipment Co.1,417.00 TOOLS & EQUIPMENT 70129 08/08/2017 HAROLD JACHIMSKI 29.68 CUSTOMER REFUND 70179 08/08/2017 Harrington Industrial 788.83 PRODUCTION REPAIR PARTS 70158 08/08/2017 HONGYANG SUN 54.84 CUSTOMER REFUND 70180 08/08/2017 Hydrex Pest Control 175.00 PEST CONTROL SERVICE 70181 08/08/2017 Infosend Inc.5,011.87 POSTAGE BILLING - JULY 2017 70159 08/08/2017 INTERNATIONAL CUSTOM ENTERPRISE 896.40 CUSTOMER REFUND 70183 08/08/2017 J & S Construction 5,200.00 CONCRETE REPAIR 70182 08/08/2017 Jackson's Auto Supply - Napa 110.75 VEHICLE MAINTENANCE - UNIT #171 70150 08/08/2017 JEFF LEUENBERGER 75.12 CUSTOMER REFUND 70157 08/08/2017 JIANHUA ZHANG 88.66 CUSTOMER REFUND 70144 08/08/2017 JOHN CRAWLEY 149.19 CUSTOMER REFUND 70139 08/08/2017 JOHN KIM 175.29 CUSTOMER REFUND 70142 08/08/2017 JULIA BERGER 184.19 CUSTOMER REFUND 70160 08/08/2017 KAI ZHANG 209.79 CUSTOMER REFUND 70184 08/08/2017 Kenny Graff 50.00 CERTIFICATE REIMBURSEMENT - WATER TREATMENT 70153 08/08/2017 L & L EZ LLC 340.33 CUSTOMER REFUND 70185 08/08/2017 LA Networks 4,700.00 TECH ON-SITE SERVICE - VOIP 70149 08/08/2017 LINA CHANG 58.63 CUSTOMER REFUND 70187 08/08/2017 Mc Fadden-Dale Hardware 534.86 PRODUCTION REPAIR PARTS 70188 08/08/2017 Mc Master-Carr Supply Co.189.50 HARDWARE SUPPLIES 70138 08/08/2017 MICHAEL GLASER 100.73 CUSTOMER REFUND 70134 08/08/2017 MIKE SCHLINGER 22.30 CUSTOMER REFUND 70189 08/08/2017 Muzak LLC 89.56 CUSTOMER MESSAGE/PHONE SERVICE - AUG 2017 70190 08/08/2017 NEOGOV, Inc.3,150.00 INSIGHT ENTERPRICE SOFTWARE LICENSE 70191 08/08/2017 Nickey Kard Lock Inc 4,265.71 FUEL - 07/01/17 - 07/15/17 70140 08/08/2017 PAUL CHENG 32.38 CUSTOMER REFUND 70155 08/08/2017 PETER COHEN 419.77 CUSTOMER REFUND 70192 08/08/2017 Powerstride Battery 90.17 BATTERY - PSS9-67S 70133 08/08/2017 PULTE GROUP 2009 8.77 CUSTOMER REFUND 70193 08/08/2017 Quinn Company 74.69 VEHICLE MAINTENANCE 70199 08/08/2017 Rachel Padilla/Petty Cash 281.21 PETTY CASH - O071817 70137 08/08/2017 RAY HOUSE 59.36 CUSTOMER REFUND 70194 08/08/2017 Reliance Safety Consultants, Inc.810.00 FORKLIFT TRAINING (2) 70136 08/08/2017 RHONA NANCE 200.14 CUSTOMER REFUND 70141 08/08/2017 ROBERTO LANDEROS 152.09 CUSTOMER REFUND 70195 08/08/2017 Rootx 4,822.87 SEWER MAIN REPAIR PARTS 70197 08/08/2017 S&J Supply Co.6,557.45 VALVE & SEWER MAIN REPAIR PARTS 70196 08/08/2017 Sanders Paving, Inc.16,923.37 ASPHALT PAVING AT 25 LOCATIONS Yorba Linda Water District Check Register For Checks Dated: 07/26/2017 thru 08/08/2017 70148 08/08/2017 SGS INTERNATIONAL INC.245.69 CUSTOMER REFUND 70198 08/08/2017 Southern Calif Edison Co.5,059.03 J10-11B - SERVICE TO 2000A PANEL W072717 07/27/2017 Southern Calif Edison Co.4,679.24 MIRALOMA ELECTRICITY CHARGES - JUNE 2017 70200 08/08/2017 State Chemical Solutions 471.38 CLEANING/PAINTING SUPPLIES 70201 08/08/2017 Step Saver Inc 1,723.30 COARSE SALT 70132 08/08/2017 TACO BELL #3555 55.62 CUSTOMER REFUND 70186 08/08/2017 The Lighthouse Inc.349.11 LED FLOODLIGHTS - UNIT #213 70202 08/08/2017 The Shredders 55.00 ON SITE SHRED SERVICE 70130 08/08/2017 THOMAS PURTELL 3.82 CUSTOMER REFUND 70203 08/08/2017 Time Warner Cable 1,852.83 DEDICATED INTERNET SERVICE & RICHFIELD BASIC CABLE 70204 08/08/2017 United Industries 767.12 PPE EQUIPMENT & OFFICE SUPPLIES 70206 08/08/2017 United Water Works, Inc.1,147.00 WAREHOUSE STOCK & VALVE REPAIR PARTS 70205 08/08/2017 UNUM Life Insurance Co. of America 3,722.91 LIFE, AD&D, STD, & LTD - AUGUST 2017 70156 08/08/2017 WALTON REALTY INC 210.36 CUSTOMER REFUND 70207 08/08/2017 West Coast Safety Supply Co 4,981.22 SEWER MAIN REPAIR PARTS 70208 08/08/2017 YO Fire 8,771.84 WAREHOUSE STOCK 141,578.74 07-27-2017 PAYROLL #15 - EMPLOYEE DIRECT DEPOSIT 171,423.46 07-27-2017 PAYROLL #15 - PAYROLL TAX PAYMENT 49,315.36 07-21-2017 PAYROLL #14 - CALPERS EFT 36,176.92 6737 07-27-2017 COLONIAL LIFE & ACCIDENT 128.3 6738 07-27-2017 FLEX ADVANTAGE 1672.41 6739 07-27-2017 LINCOLN FINANCIAL GROUP 2736.95 6740 07-27-2017 NATIONWIDE RETIREMENT SOLUTIONS 8125.29 6741 07-27-2017 KATHERINE VARGAS-LIMON 231 6742 07-27-2017 CALIFORNIA STATE DISBURSEMENT UNIT 366.92 6743 07-27-2017 CALIFORNIA STATE DISBURSEMENT UNIT 339.69 6744 07-27-2017 CALIFORNIA STATE DISBURSEMENT UNIT 404.3 6745 07-27-2017 AMERICAN HERITAGE LIFE 1616.53 6746 07-27-2017 MIDLAND LIFE INSURANCE 240 6747 07-27-2017 RELIANCE DI 47.54 6748 07-27-2017 AMERITAS 764.68 273,589.35 Payroll Checks #15 Vendor Name Amount Description Super Shuttle 59.00 Travel Expense - Black Hat - Vega, A CNA Surety 350.00 Surety Bond - Marcantonio, M Lightbulbs Inc.599.09 Lighbulbs for YLWD Admin building Home Depot 98.27 CL2 repair parts Online Information Services 514.41 Online utility exchange report CMTA 155.00 CMTA Memberships - Lugo & McCann PASMA 198.00 (2) tickets to PASMA safety conference - Knight, G & Smith, J CNA Surety 500.00 Surety Bond - Lugo, D CSDA 575.00 Registration for CSDA Board Secretary Conference - Alexander, A Home Depot 32.22 SOD for landscape repair Fry's Electronics 384.58 PC supplies and USB storage Inland Group 2,609.72 Summer 2017 Newsletter - print cost Inland Group 452.65 Newsletter template - digital file Online Information Services 520.30 Online utility exchange report Answer One Communications 522.00 After hours answer service Placentia Disposal 593.18 (2) front loads - Richfield Rd. Konica Minolta Business 1,517.14 Copy charges - 3/2017 - 6/2017 - C258 & C558 Home Depot 375.74 (64) bags of concrete El Torito Grill 184.28 Employee appreciation - 10 attendees CalPERS 350.00 Registration - CalPERS education forum - Lugo, D Blue Agave 67.55 Interdepartment luncheon - 5 attendees National Notary Assn 102.00 NNA membership & E&O insurance Best Value Tire 18.91 Mount & balance new tire - Unit #204 Amazon 71.54 PC supplies Harrington Industrial 350.19 Material - tubing Village Nurseries 113.14 Plants for landscape repairs - 5096 Fairway View Fry's Electronics 55.21 PNY PowerPack Home Depot 323.15 (3) wheel barrows Dan Copp Crushing 300.00 Disposal of old road material Amazon 139.36 IT hardware - storage drive ACWA 50.00 Registration for ACWA Region 8 Program - Nederhood, A Kohler 568.52 Waterless urinal cleaning supplies R.E. Michel Company 83.80 Supplies for repair at Admin building Home Depot 86.18 Easy-up shade canopy ACE Parking 20.00 Travel Expense - ESRI Conference - Vargas, A Jimbos 16.64 Travel Expense - ESRI Conference - Vargas, A San Diego Convention Center 5.50 Travel Expense - ESRI Conference - Vargas, A Double Tree Hilton 365.48 Travel Expense - ESRI Conference - Vargas, A Elite Gates 449.81 Gate repair - (2) limit switch box assemblies Ganahl Lumber 15.97 Lumber to repair part on Vehicle #196 JustHost.com 95.88 Domain hosting Amazon 123.65 Power steering tester Aplust.net 12.79 Domain hosting Schorr Metals 246.35 Diamond plate steel - Unit #174 14,272.20 Cal Card Credit Card U S Bank ITEM NO. 7.4 AGENDA REPORT Meeting Date: August 8, 2017 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Richard Cabadas, Accounting Assistant I Subject:Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2016/17 SUMMARY: Presented are the Fourth Quarter Directors and General Manager Fees and Expenses Report for FY 2016/17. STAFF RECOMMENDATION: That the Board of Directors receive and file the Directors and General Manager Fees and Expenses Report for Fourth Quarter FY 2016/17. ATTACHMENTS: Name:Description:Type: Travel___Expense_Report.pdf Travel and Expense Detail - 4th Qtr FY17 Backup Material BOD___GM_Qtr_Summary.pdf BOD GM Qtr Summary Backup Material BOD___GM_YTD_FY_2016-17.pdf BOD GM YTD FY17 Backup Material GL Trip Trip Trip Event/ Director Date Date Name Location Meals Lodging Travel Conf. Fee Misc.Total trip Total Hawkins 5/31/17 6/16/17 OC Water Summit Fountain Valley, CA -$ -$ -$ 130$ -$ 130$ 6/28/17 6/29/17 ISDOC Quarterly meeting Fountain Valley, CA -$ -$ -$ 17$ -$ 17$ 6/30/17 06/1-30/17 WACO, OC WATER SUMMIT & ISDOC MULTIPLE LOCATIONS -$ -$ 76$ -$ -$ 76$ -$ -$ -$ -$ -$ -$ -$ 223$ Miller 5/31/17 6/16/17 OC Water Summit Fountain Valley, CA -$ -$ -$ 130$ -$ 130$ -$ -$ -$ -$ -$ -$ -$ 130$ Hall -$ -$ -$ -$ -$ -$ -$ -$ Nederhood 4/17/17 03/1-31/17 MWDOC & MWDOC DINNER Multiple locations -$ -$ 40$ -$ -$ 40$ 4/30/17 04/10-13/17 AWWA CA/NV Conference Anaheim, CA -$ -$ 28$ -$ 36$ 64$ 4/30/17 04/1-30/17 MWDOC Fountain Valley, CA -$ -$ 74$ -$ -$ 74$ 5/31/17 05/1-31/17 MWDOC, WACO, LAFCO & SANTA ANA WATERSHED CONF.Multiple locations -$ -$ 125$ -$ 19$ 144$ 5/31/17 6/16/17 OC Water Summit Fountain Valley, CA -$ -$ -$ 130$ -$ 130$ 5/31/17 08/16-18/17 UWI Conference San Diego, CA -$ 247$ -$ 475$ -$ 722$ 6/28/17 6/29/17 ISDOC Quarterly meeting Fountain Valley, CA -$ -$ -$ 17$ -$ 17$ 6/30/17 06/1-30/17 WACO, MWDOC, & LAFCO Multiple locations -$ -$ 95$ -$ -$ 95$ -$ 1,285$ Jones 4/17/17 04/1-30/17 OCWD Fountain Valley, CA -$ -$ 46$ -$ -$ 46$ 4/30/17 03/1-31/17 WACO & ISDOC Fountain Valley, CA -$ -$ 46$ -$ -$ 46$ 5/31/17 05/1-31/17 MWDOC, WACO, OCWD & SANTA ANA WATER SHED CONF.Multiple locations -$ -$ 123$ -$ 10$ 133$ 5/31/17 6/16/17 OC Water Summit Fountain Valley, CA -$ -$ 18$ 130$ -$ 148$ 5/31/17 08/16-18/17 UWI Conference San Diego, CA -$ 247$ -$ 475$ -$ 722$ 6/28/17 6/29/17 Chino Basin Water Conservation District Montclair, CA -$ -$ 31$ 25$ -$ 56$ 6/30/17 06/1-30/17 OWCD & OC WATER SUMMIT Multiple locations -$ -$ 46$ -$ -$ 46$ -$ -$ -$ -$ -$ -$ -$ 1,197$ Total Director's -$ 494$ 747$ 1,529$ 65$ 2,835$ 2,835$ General Manager Marcantonio 4/27/17 03/1-31/17 MWDOC, ISDOC, LCW Conference & San Jacinto Tunner Tour Multiple locations -$ -$ 196$ -$ -$ 196$ 5/12/17 04/1-30/17 MWDOC, ACWA MEETING & Bus. Meetings Multiple locations -$ -$ 107$ -$ -$ 107$ 5/31/17 06/25-27/17 CSDA - General Manager Leadership Summit Newport Beach, CA -$ -$ -$ 625$ -$ 625$ 5/31/17 08/16-17/17 UWI Conference San Diego, CA -$ 247$ -$ 475$ -$ 722$ 5/31/17 05/1-31/17 MWDOC & Bus. Meetings Multiple locations -$ -$ 39$ -$ -$ 39$ 6/28/17 6/29/17 ISDOC Quarterly Meeting Fountain Valley, CA -$ -$ 20$ 17$ -$ 37$ 6/30/17 06/1-30/17 MWDOC, SAWPA, OCWD Fountain Valley, CA -$ -$ 54$ -$ -$ 54$ Total GM -$ 247$ 416$ 1,117$ -$ 1,780$ 1,780$ Total Director's & GM -$ 740$ 1,163$ 2,646$ 65$ 4,614$ 4,614$ DIRECTOR'S & GENERAL MANAGER'S RECAP OF TRAVEL/CONFERENCE EXPENSES FOURTH QUARTER OF FY 2016-17 APRIL - JUNE 2017 YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES 4TH QUARTER REPORT FROM 04-01-2017 TO 06-30-2017 FISCAL YEAR 2016-2017 HAWKINS MILLER HALL NEDERHOOD JONES SUB-TOTAL MARCANTON TOTAL REGULAR MEETINGS ATTENDED 6 6 5 5 6 28 COMMITTEE MEETINGS ATTENDED 1 2 0 0 0 3 OFF SITE MEETINGS ATTENDED 1 0 0 9 6 16 SPECIAL MEETINGS ATTENDED 3 3 2 3 3 14 OTHER MEETINGS ATTENDED 4 3 1 11 8 27 TOTAL MEETINGS ATTENDED QTD 15 14 8 28 23 88 88 DIRECTOR FEES QTD $2,250 $2,100 $1,200 $4,200 $3,450 $13,200 $13,200 MEETING FEES BUDGET QTD $4,500 $4,500 $4,500 $4,500 $4,500 $22,500 $22,500 TRAVEL & CONF. EXPENSES QTD $223 $130 $0 $1,285 $1,197 $2,835 $2,835 TRAVEL & CONF. BUDGET QTD $1,378 $1,378 $1,378 $1,378 $1,378 $6,888 $6,888 DIR.FEES AND EXPENSES QTD $2,473 $2,230 $1,200 $5,485 $4,647 $16,035 $16,035 FEES AND EXPENSES BUDGET QTD $5,878 $5,878 $5,878 $5,878 $5,878 $29,388 $29,388 GEN MGR EXPENSES QTD $1,780 $1,780 GEN MGR TRAVEL/CONF. BUDGET QTD $6,110 $6,110 TOTAL FEES & EXPENSES QTD $2,473 $2,230 $1,200 $5,485 $4,647 $16,035 $1,780 $17,815 TOTAL FEES & EXPENSES BUDGET QTD $5,878 $5,878 $5,878 $5,878 $5,878 $29,388 $6,110 $35,498 BEVERAGE COLLETT HAWKINS KILEY MELTON MILLER HALL NEDERHOOD JONES SUB-TOTAL MARCANTONIO TOTAL DIRECTORS: REGULAR MEETINGS ATTENDED 9 10 22 9 9 14 11 12 14 110 COMMITTEE MEETINGS ATTENDED 8 6 3 2 3 4 0 1 0 27 OFF SITE MEETINGS ATTENDED 13 7 9 10 13 1 1 16 16 86 SPECIAL MEETINGS ATTENDED 4 4 12 4 4 8 7 10 9 62 OTHER MEETINGS ATTENDED 0 1 12 11 3 8 2 19 15 71 TOTAL MEETINGS ATTENDED YTD 34 28 58 36 32 35 21 58 54 356 356 DIRECTOR FEES YTD $5,100 $4,200 $8,700 $5,400 $4,800 $5,250 $3,150 $8,700 $8,100 $53,400 $53,400 MEETING FEES BUDGET YTD $7,500 $7,500 $18,000 $7,500 $7,500 $10,500 $10,500 $10,500 $10,500 $90,000 $90,000 TRAVEL & CONFERENCES EXPENSES YTD $122 $0 $428 $3,907 $0 $757 $0 $3,028 $2,981 $11,224 $11,224 TRAVEL & CONFERENCE BUDGET YTD $2,296 $2,296 $5,510 $2,296 $2,296 $3,214 $3,214 $3,214 $3,214 $27,550 $27,550 TOTAL DIRECTORS FEES & EXPENSES YTD $5,222 $4,200 $9,128 $9,307 $4,800 $6,007 $3,150 $11,728 $11,081 $64,624 $64,624 TOTAL FEES & EXPENSES BUDGET YTD $9,796 $9,796 $23,510 $9,796 $9,796 $13,714 $13,714 $13,714 $13,714 $117,550 $117,550 GENERAL MANAGER EXPENSES YTD $5,109 $5,109 GENERAL MANAGER TRAVEL & CONFERENCE BUDGET YTD $24,440 $24,440 TOTAL FEES & EXPENSES YTD $5,222 $4,200 $9,128 $9,307 $4,800 $6,007 $3,150 $11,728 $11,081 $64,624 $5,109 $69,733 TOTAL FEES & EXPENSES BUDGET YTD $9,796 $9,796 $23,510 $9,796 $9,796 $13,714 $13,714 $13,714 $13,714 $117,550 $24,440 $141,990 YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES YEAR-TO-DATE REPORT FROM 07-01-2016 TO 06-30-2017 FISCAL YEAR 2016-2017 ITEM NO. 8.1 AGENDA REPORT Meeting Date: August 8, 2017 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Delia Lugo, Finance Manager Subject:Authorized Officers for Investments Held at Pershing STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 17-27 authorizing the General Manager, Assistant General Manager and Finance Manager to act on behalf of the District relating to District investments held at Pershing, LLC and rescinding Resolution No. 14-12. DISCUSSION: The District currently has a portion of its reserves invested at Pershing, LLC (Pershing). Due to recent changes in personnel, a new resolution identifying employees who are authorized to act on behalf of the District pertaining to investments held a Pershing is required. Yorba Linda Water District's current investment policy adopted in June 2017 authorizes the Treasurer to invest funds for the District. Staff recommends adding the General Manager and Assistant General Manager as back-ups should the Treasurer not be available for an extended period of time. ATTACHMENTS: Name:Description:Type: Resolution_No._17-27_- _Investments_Held_at_Pershing.docx Resolution Resolution Resolution No. 17-27 Authorized Officers for Investments Held at Pershing 1 RESOLUTION NO. 17-27 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AUTHORIZING THE GENERAL MANAGER, ASSISTANT GENERAL MANAGER AND FINANCE MANAGER TO ACT ON BEHALF OF THE DISTRICT RELATING TO DISTRICT INVESTMENTS HELD AT PERSHING, LLC AND RESCINDING RESOLUTION NO. 14-12 WHEREAS, in July 2012, District staff completed the process of vetting Matthew D’Avanzo, Senior Vice-President – Fixed Income Strategies at First Empire Securities (First Empire) as a broker/dealer; and WHEREAS, First Empire has an agreement with Pershing, LLC (Pershing) where the District can choose to have investments purchased through First Empire be held at Pershing; and WHEREAS, First Empire requires that a resolution be adopted authorizing people to act on behalf of the District relating to District investments held at Pershing; and WHEREAS, the District’s current investment policy adopted in June 2017 authorized the District’s Treasurer to invest fund of the District and the Board of Directors desires to add the General Manager and Assistant General Manager as back-ups should the Treasurer not be available for an extended period of time. NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does find, determine, and resolve the following: Section 1. Resolution No. 14-12 is hereby rescinded. Section 2. Andrew “Marc” Marcantonio, General Manager, Brett R. Barbre, Assistant General Manager, and Delia D. Lugo, Finance Manager, each of whom holds the office as indicated, is authorized to act on behalf of the Yorba Resolution No. 17-27 Authorized Officers for Investments Held at Pershing 2 Linda Water District to buy, sell, assign, loan, borrow, endorse for transfer, transfer and receive stocks, bonds, securities, money and other assets now or hereafter registered in the name of or held for Yorba Linda Water District at Pershing, LLC. PASSED AND ADOPTED this 8th day of August 2017 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District ATTEST: Marc Marcantonio, Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP ITEM NO. 8.2 AGENDA REPORT Meeting Date: August 8, 2017 Budgeted:N/A To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Brett R. Barbre, Asst General Manager Reviewed by Legal:N/A Prepared By:Brett R. Barbre, Asst General Manager Subject:AB 1000 - Water Conveyance: Use of Facility With Unused Capacity (Nederhood) STAFF RECOMMENDATION: That the Board of Directors adopt an OPPOSE position and instruct the General Manager to communicate the position of the Yorba Linda Water District to the Santa Margarita Water District, and to empower the President or the General Manager to sign any coalition letters in opposition to AB 1000. DISCUSSION: The current status of the bill is as follows: “Gut and Amended” July 3, 2017; passed the Senate Committee on Natural Resources and Water on a 7-2 vote; re-referred to Committee on Appropriations; hearing scheduled for August 21, 2017. Background: AB 1000 is intended to circumvent the normal approval process under the California Environmental Quality Act (CEQA) for the CADIZ Valley Water Conservation, Recovery and Storage Project (CADIZ) project. Assemblywoman Laura Friedman (D-Glendale) introduced this bill specifically to stop the CADIZ project. Supporters of her bill include environmental organizations and opponents of the project. Opponents of the bill include the sponsors of the CADIZ project (the Santa Margarita Water District), several Orange County water districts, members of the building trades and numerous business organizations. A copy of AB 1000, as amended July 3, 2017, is attached, as well as the detailed Staff Committee Analysis from the Senate Committee on Natural Resources and Water. Issue of Concern to the District: YLWD should oppose the bill as the approval and enactment would establish a dangerous precedent for projects which may be considered controversial and yet have completed full CEQA reviews, including litigation. Below are the positions of ACWA, MWD, MWDOC and OCWD. ACWA – No Position MWD – No Position MWDOC – Oppose OCWD – No Position ATTACHMENTS: Name:Description:Type: Copy_of_AB_1000.pdf Copy of AB 1000 Backup Material Committee_Analysis_-_AB_1000.pdf Committee Analysis of AB 1000 Backup Material Presentation_-_Item_8.2.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material AMENDED IN SENATE JULY 3, 2017 AMENDED IN ASSEMBLY MAY 30, 2017 california legislature—2017–18 regular session ASSEMBLY BILL No. 1000 Introduced by Assembly Member Friedman February 16, 2017 An act to add Section 25402.14 to the Public Resources 1815 to the Water Code, relating to water conservation. water. legislative counsel’s digest AB 1000, as amended, Friedman. Water conservation: performance standards for water meters. conveyance: use of facility with unused capacity. Existing law prohibits the state or a regional or local public agency from denying a bona fide transferor of water from using a water conveyance facility that has unused capacity for the period of time for which that capacity is available, if fair compensation is paid for that use and other requirements are met. This bill would, notwithstanding that provision, prohibit a transferor of water from using a water conveyance facility that has unused capacity to transfer water from a groundwater basin underlying desert lands, as defined, that is in the vicinity of specified federal lands or state lands to outside of the groundwater basin unless the State Lands Commission, in consultation with the Department of Fish and Wildlife, finds that the transfer of the water will not adversely affect the natural or cultural resources of those federal and state lands. Existing law requires the State Energy Resources Conservation and Development Commission to establish design and construction standards 97 and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy. Existing law requires the commission to establish minimum levels of operating efficiency to promote the use of energy and water efficient appliances. The Water Measurement Law requires every water purveyor to require, as a condition of new water service, the installation of a water meter to measure water service. That law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters in accordance with a certain timetable. This bill would authorize the commission to adopt regulations establishing performance standards for water meters installed in residential and nonresidential buildings, including water meters installed pursuant to the Water Measurement Law. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. Section 1815 is added to the Water Code, to read: line 2 1815. (a)  Notwithstanding Section 1810, a transferor of water line 3 shall not use a water conveyance facility that has unused capacity line 4 to transfer water from a groundwater basin underlying desert line 5 lands that is in the vicinity of a national monument, a national line 6 preserve, a national park, a state or federal wilderness area, or line 7 state lands to outside of the groundwater basin unless the State line 8 Lands Commission, in consultation with the Department of Fish line 9 and Wildlife, finds that the transfer of the water will not adversely line 10 affect the natural or cultural resources, including groundwater line 11 resources or habitat, of those federal and state lands. line 12 (b)  For purposes of this section, “desert lands” means the line 13 portion of California located south of Interstate 15, east of State line 14 Highway 247, north of State Highway 62, west of Interstate 95, line 15 and west of the Nevada state line between Interstate 95 and line 16 Interstate 15. line 17 SECTION 1. Section 25402.14 is added to the Public Resources line 18 Code, to read: 97 — 2 —AB 1000 line 1 25402.14. The commission may adopt regulations to establish line 2 performance standards for water meters installed in residential and line 3 nonresidential buildings, including water meters required to be line 4 installed pursuant to Article 3.5 (commencing with Section 525) line 5 of Chapter 8 of Division 1 of the Water Code. O 97 AB 1000— 3 — SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Robert Hertzberg, Chair 2017 - 2018 Regular Bill No: AB 1000 Hearing Date: July 11, 2017 Author: Friedman Version: July 3, 2017 Urgency: No Fiscal: Yes Consultant: Dennis O'Connor S ubject: Water conveyance: use of facility with unused capacity BACKGROUND AND EXISTING LAW Current law prohibits the state or a regional or local public agency from denying a bona fide transferor of water from using a water conveyance facility that has unused capacity for the period of time for which that capacity is available, if fair compensation is paid for that use and other requirements are met, including: 1) The commingling of transferred water does not result in a diminution of the beneficial uses or quali ty of the water in the facility and the transferred water is of substantially the same quality as the water in the facility. 2) This use of a water conveyance facility is to be made: a) Without injuring any legal user of water. b) Without unreasonably affecting fish, wildlife, or other instream beneficial uses . c) Without unreasonably affecting the overall economy or the environment of the county from which the water is being transferred. PROPOSED LAW Notwithstanding current law, this bill would prohibit a transferor of water from using a water conveyance facility that has unused capacity to transfer water from a groundwater basin as specified, unless the State Lands Commission, in consultation with the Department of Fish and Wildlife, finds that the transfer of the water will not adversely affect the natural or cultural resources, including groundwater resources or habitat, of those federal and state lands. For this prohibition to apply, the groundwater basin must underlie desert lands that are in the vicinity of a national monument, a national preserve, a national park, a state or federal wilderness area, or state lands. “D esert lands” are defined as the portion of California located south of Interstate 15, east of State Highway 247, north of State Highway 62, west of Interstate 95, and west of the Nevada state line between Interstate 95 and Interstate 15. ARGUMENTS IN SUPPORT According to the author, “The California desert is home to unique scenic, historical, archeological, ecological, wildlife, cultural, scientific, educational, and recreational values used and enjoyed by millions of Americans for hiking and camping, scientific study and scenic appreciation. Through acts of Congress and designations by past AB 1000 (Friedman) Page 2 of 4 Presidents, the California desert is home to national parks, preserves, monuments and wilderness areas that preserve the unique values and history of the California desert including but not limited to: Mo jave National Preserve, Mojave Trails National Monument, Joshua Tree National Park, Sheephole Valley Wilderness, and Clipper Mountains Wilderness. These unique lands, which support wildlife and sustain tourism economies, face increasing threats to their existence from ongoing development and the effects of climate change. The current federal administration and the United States Congress has signaled a series of direct challenges to protections previously provided by the federal government to the California desert, including national monuments. The federal administration has prioritized the Cadiz water extraction project —a proposed environmentally harmful groundwater extraction project in the Mojave Desert—by rescinding policies that would trigger a federal environmental review of the project. The project was also included on the “Emergency and National Security Projects” list developed by the admini stration. Scientists have determined that the Cadiz project would draw out up to 10 times more water from the desert aquifer than can be naturally recharged. Cadiz asserts that the aquifer’s water recharge rate is 32,000 acre feet per year and proposes to export an average of 50,000 acre feet of groundwater from the region each year over a 50 -year period. However, the U.S. Geological Survey has stated the recharge rate is less than 5,000 acre feet per year. AB 1000 strengthens protections for the ecologi cally fragile Mojave Desert by ensuring any water transfers from desert groundwater basins do not adversely affect the region’s natural or cultural resources, including vital groundwater or habitat.” ARGUMENTS IN OPPOSITION According to the Santa Margarita Water District, “AB 1000 seeks to impose an unnecessary and duplicative environmental review of the [Cadiz Valley Water Conservation, Recovery & Storage Project (Project)]. Since 2009, the Project has been extensively studied, publicly-reviewed, and approved under California’s stringent environmental laws. Following a multi -year public California Environmental Quality Act (CEQA) review process, Project operations were determined to have no significant adverse environmental impacts of any kind. Separately, under the County of San Bernardino’s desert groundwater ordinance, the Project was independently reviewed, constrained and then also approved, again with the determination that it would not harm the area’s groundwater resources. The CEQA approvals were challenged by opponents of the Project in 12 separate cases in Superior Court and the California Court of Appeal over four years from 2012 – 2016. Every claim brought by each opponent in every case was denied in court; and the Project’s Environmental Impact Report and Groundwater Management Plan were upheld in their entirety, both at trial and on appeal. Not one word in the environmental documents has been changed by the courts or remanded back for further study. It is for these reasons that AB 1000 is so concerning. At the 11th hour, as the project is finally close to being shovel-ready and, at a time when we truly need to invest in more AB 1000 (Friedman) Page 3 of 4 reliable supplies and storage, Project opponents are attempting an end -run around the Project’s lawful CEQA process and our state’s esteemed courts, which would not only carve out this one project for singular, extreme treatment but also create a precedent for similar regulatory abuse for any other water transfer project in the state. We view the Project as a necessary component of Southern California’s water supply portfolio that has followed every law and complied with every regulation, so AB 1000 is not an appropriate law to further constrain the Project. If enacted, AB 1000 will have far reaching negative impacts on the entire California water community. The transportation of water in existing conveyance facilities is already a highly-regulated process, that must also follow CEQA. The creation of a new legislative layer to block the Cadiz Water Project sets a dangerous pr ecedent that can be used to block any water conveyance project. We urge you to oppose this bill and pull it from consideration. COMMENTS It’s All About Cadiz. This bill is focused on the proposed groundwater transfer and storage project known as the Cadiz Valley Water Conservation, Recovery and Storage Project. The Cadiz Valley is about 3 miles south of historic Route 66 near the now abandoned town of Chambless in the Mojave Desert. According to the Cadiz Inc. website, the project “is designed to capture and conserve billions of gallons of renewable native groundwater flowing beneath our property in California’s Mojave Desert that is currently being lost to evaporation and salt contamination at nearby dry lakes. Through the active management of the a quifer system and employing a state -of- the-art groundwater protection program, the Project will reduce the loss of groundwater to evaporation from the dry lakes, put this water to beneficial use and create a reliable water supply for Southern California.” Long Standing Controversy. In 1998, Cadiz Inc. and Metropolitan Water District of Southern California (MWD) began discussion about a project that would have imported Colorado River water to Cadiz, Ca . and exported groundwater from Cadiz to the MWD service area. Ultimately, MWD decided not to go forward citing uncertainties about potential for environmental impacts. In the intervening years, there have been environmental documents certified, numerous court challenges, sometimes conflicting findings by fed eral agencies, and strong and consistent opposition by Senator Feinstein and others. The crux of the dispute is differing estimates of the sustainable yield of the Cadiz Valley groundwater basin. Cadiz, citing a CH2M study, claims the groundwater basin naturally recharges at 32,500 acre-feet/year and can sustainably support the proposed water supply and storage project. Opponents respond that the U.S. Geological Survey’s study found that the natural refill rate of the desert aquifer is between 2,000 and 10,000 acre feet of water per year. Why The State Lands Commission ? The bill makes approval of the transfer contingent on a finding by the State Lands Commission, in consultation with the Department of Fish and Wildlife, that the transfer of the water will not adversely affect the natural or cultural resources, including groundwater resources or habitat, of those federal and AB 1000 (Friedman) Page 4 of 4 state lands. One might wonder why the State Lands Commission is the key decision maker. In 1984, the California Legislature enacted the School Land Bank Act, requiring the Commission to take all action necessary to fully develop school lands into a permanent and productive resource base. According to the author’s office, there are school lands in and around the Cadiz Valley. That might be, but the State Lands Commission doesn’t have expertise in groundwater, water transfers, groundwater dependent desert ecosystems, water quality, or any of the other major points of contention that this project has generated over the years. Given the controversy about this project, it might make sense for some sort of state role in approving this project. However, there are other state agencies might make more appropriate leads. For example, the Department of Water Reso urces has expertise in groundwater management and water transfers. The Department of Fish and Wildlife updated the groundwater priorities under the Sustainable Groundwater Management Act to reflect groundwater dependent ecosystems. The State Water Resour ces Control Board manages water quality under the Federal Clean Water Act and Porter -Cologne Water Quality Control Act. Any of these agencies would seem a reasonable lead agency for evaluating and approving a project under this bill. Should the committee pass this bill, it might want to encourage the author to more fully explore which state agency should take the lead in determining if the project is appropriately protective of natural and cultural resources when the bill is in the appropriations committee. SUGGESTED AMENDMENTS : None SUPPORT National Parks Conservation Association (sponsor) 29 Palms Inn Audubon California California League of Conservation Voters Center for Biological Diversity Coalition to Protect America’s National Parks Defenders of Wildlife Environment California Hispanic Access Foundation Inland Empire Waterkeeper Mojave Desert Land Trust Mojave National Preserve Conservancy Morongo Basin Conservation Association Native American Land Conservancy Natural Resources Defense Council Orange County Coastkeeper Sierra Club California The Nature Conservancy Vet Voice Foundation OPPOSITION BizFed Engineering Contractors’ Association California Chamber California State Council of Laborers Garney Construction Inland Empire Economic Partnership Orange County Business Council Roscoe Moss Company Santa Margarita Water District Southern California District Council of Laborers Southern California Partnership For Jobs State Building and Construction Trades Council AB 1000 (Friedman, D-Glendale) Re: Conveyance: use of facility with unused capacity August 8, 2017 Item 8.2 –Action –August 8, 2017 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Components of the bill: •Bill would place specific water transfers under the control of the State Lands Commission, in consultation with Department of Fish & Wildlife; •Specific to basins related to the CADIZ project. Item 8.2: ACTION Item 8.2 –Action –August 8, 2017 The current status of the bill: •“Gut and Amended” July 3, 2017; •Passed the Senate Committee on Natural Resources and Water on a 7-2 vote; •Re-referred to Committee on Appropriations; •Hearing scheduled for August 21, 2017. Item 8.2: ACTION Item 8.2 –Action –August 8, 2017 Issue of Concern to the District Enactment of this bill would establish a dangerous precedent for projects which have completed full CEQA reviews. Item 8.2: ACTION Item 8.2 –Action –August 8, 2017 Local Support/Opposition for the Bill: SUPPORT OPPOSITION Orange County Coastkeeper Municipal Water District of Orange County Natural Resources Defense Council Santa Margarita Water District Audubon California Orange County Business Council CA League of Conservation Voters Southern California Water Committee Center for Biological Diversity Orange County Council of Governments Sierra Club California Association of California Cities –Orange County The Nature Conservancy Golden State Water Company Item 8.2: ACTION Item 8.2 –Action –August 8, 2017 Board Options Option 1 •Adopt an OPPOSE position on AB 1000; •Authorize the President or the General Manager to sign coalition letters in opposition to the bill. Option 2 •Take no position on AB 1000. Item 8.2: ACTION Item 8.2 –Action –August 8, 2017 Staff Recommendation •Option 1 Item 8.2: ACTION Item 8.2 –Action –August 8, 2017 Item 8.2 –Action –August 8, 2017 ITEM NO. 8.3 AGENDA REPORT Meeting Date: August 8, 2017 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Marc Marcantonio, General Manager Prepared By:Annie Alexander, Executive Assistant Subject:Adjusting Time of Regular Meetings and Establishing Time for Adjournment (Miller) STAFF RECOMMENDATION: That the Board of Directors consider adjusting the time of regular meetings and establishing a set time for adjournment. DISCUSSION: During the meeting held January 12, 2017, the Board determined to modify the recurrence and time of regular Board meetings to the second and fourth Tuesday's of each month with Closed Session beginning at 5:30 p.m. (if necessary) and regular business beginning at 6:30 p.m. President Miller has requested this matter be placed on the agenda in order for the Board to reconsider the beginning time of regular meetings and establishing a set time for adjournment. The Board may also want to discuss handling of items not considered prior to adjournment should a time be set and Closed Sessions that may need to be held prior to regular business. Should the Board determine to keep the current meeting schedule or make further modifications, an amendment to Section 10.1(A) of the Board of Directors Policies and Procedures manual adopted by Resolution No. 16-12 will be required. ITEM NO. 9.1 AGENDA REPORT Meeting Date: August 8, 2017 Subject:Update of Procurement and Purchasing Policy ATTACHMENTS: Name:Description:Type: Final_Draft_Purchasing_Policy.docx Backup Material Backup Material Current_Purchasing_Policy.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material Presentation_-_Item_9.1.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material Yorba Linda Water District Purchasing Policy I. PURPOSE OF POLICY 1.1 The Yorba Linda Water District Purchasing Policy (this “Policy”) establishes policies and procedures for acquiring services and materials, equipment and supplies (referred to collectively as “materials”), and for public works projects, for the Yorba Linda Water District (the “District”), pursuant to Government Code Section 54201 et seq. California Government Code Section 54202: requires every local agency to adopt policies and procedures, including bidding regulations, governing purchases of supplies, materials and equipment and that said purchases shall be in accordance with said duly adopted policies and procedures. California Government Code Section 54204: requires that if the local agency is other than a city or county, policies provided for in Section 54202 shall be adopted by means of a written rule or regulation, copies of which shall be available for public distribution. 1.2 This Policy establishes the Board of Directors’ (the “Board”) approved policies with respect to the procurement of services and materials and for public works projects, including expenditure authorization and limits, competitive proposal and bidding requirements, and general procurement procedures. All purchases of services or materials and public works projects to be paid for by the District must adhere to the authority level and dollar limits of this Policy as set forth in Section 2, except as otherwise provided by specific terms and exceptions set forth in this Policy. II. AUTHORIZATION 2.1 By adoption of this Policy, the Board is authorizing the General Manager, or his/her designated representatives to exercise certain duties and responsibilities that are essential for the day-to-day operation of the District. 2.2 The General Manager may delegate the procurement of services and materials and the provision of public works projects to those staff members given specific authority, consistent with the terms of this Policy. 2.3 Delegation of purchasing authority may be through the authorized use of purchasing cards, purchase orders, check requests, or other written authorization. All such purchases will be made in conformity with the policies and procedures prescribed within this Policy. 2.4 The Board-established procurement limits and contract signatory authority are listed in Table 1 below. These limits are applicable on a per-expenditure/per-contract basis, not on an aggregated basis, for unrelated activities. 1 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 Table 1 Procurement Limits and Contract Signature Authority Title Expenditures Contract Signature Authority General Manager up to $75,000 $75,001 and over with Board authorization Up to $75,000 without Board authorization Assistant General Manager up to $50,000 up to $50,000 Department Managers up to $25,000 up to $25,000 Superintendents, Senior Project Engineer, Water Quality Engineer, Management Analyst up to $5,000 none Executive Assistant up to $2,500 none Administrative Personnel up to $1,000 none III. DEFINITIONS The terms referenced in this Policy shall have the meanings as defined below. Administrative Personnel – District administrative employees authorized by the General Manager to purchase miscellaneous items, food and travel in support of District functions; includes Senior Accountant, Public Affairs Representative, Human Resources Analyst and any other administrative position as authorized by the General Manager. Amendment – A written change or addition to a legal document which, when properly executed, has the same legal validity of the original document. Board – The Board of Directors of Yorba Linda Water District. Change Order – A written Amendment modifying the terms of an existing Contract or Purchase Order. Consultant – An individual, firm or entity that provides or offers to provide Professional Services to the District. Contingency - A predetermined amount or percentage of a Contract held for changes in a Public Works project. Contract - Written agreement authorizing a contractor, consultant, supplier or service provider to provide materials or services, or Public Works, in accordance with the material requirements, conditions or scope of work stated in the Contract District – Yorba Linda Water District. Emergency – A situation in which unforeseen circumstances present an immediate risk of harm or hazard to the public health, safety, and welfare, or to the District property, or threaten serious interruption of District operations. 2 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 General Manager – General Manager of the District or the person appointed by the Board to act in the capacity of the General Manager and authorized to administer this Policy on his/her behalf. Invitation to Bid - A formal process for soliciting sealed bids from qualified prospective suppliers or Public Works contractors. Typically involves a formal bid opening, and the awarding of a Contract to a responsive and responsible supplier or contractor based on price, demonstrated competence and qualifications necessary to perform the services required, demonstrated quality of the goods required, and other specified factors, and as otherwise required by law. Multiple Year Contract - A Contract for the purchase of services or materials, or for Public Works for a multiple year term or that may contain provisions to extend performance by exercising optional renewal periods. A Multiple Year Contract does not obligate the District beyond the initial award period and shall not provide for a cancellation payment to the contractor if options are not exercised. Non-Discretionary Purchases – Payments to utilities, temporary employment services, insurance providers, healthcare providers and national, federal, state or local agencies that relate to routine obligations and expenses essential to the District’s ability to provide service to customers and that have been approved in fiscal year operating or capital budgets. Non-Professional Services – Services other than Professional Services, including supply and maintenance services. Procurement - The purchase or lease of materials, supplies, equipment or services, or Public Works. Professional Services – Any type of special service or advice in financial, economic, accounting, engineering, legal or administrative matters by persons specially trained and experienced and competent to perform the special services required. (Gov’t Code § 53060.) Such services include but are not limited to architectural; engineering; environmental; financial; land surveying; construction management; audits; training services; legal services; preparation of planning or studies; technology application development; and personnel, job classification and benefit studies. Public Works – As defined by California Public Code Section 22002, public projects include construction, reconstruction, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased or operated facility. Maintenance work is not considered a public project for purposes of this definition. Purchasing Card - A form of charge card that allows materials and services to be purchased without using a Purchase Order. The District participates in the Cal Card and Costco credit card programs. Purchase Order (PO) – An authorization, under a standardized form in which the party designated as the “provider” is to provide materials and/or services for which the District agrees to pay. Request for Proposal (RFP) - A solicitation used for the procurement of Professional Services and Non- Professional Services. Prospective suppliers or Consultants submit requested information and are evaluated/awarded based on pre-established criteria. Request for Quotes (RFQ) - A solicitation used for procurement of supplies, materials, or equipment. Requisition (REQ) - The procedural method by which departments may request a PO for the purchase of materials, supplies or equipment. Requisitions are entered into the District’s ERP system application. 3 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 Single Source Purchase - Procurement where: (1) there is a compelling reason for only one source, a preferred brand, like material, homeland security goods and services etc., to be procured; or (2) the commodity is unique, including, but not limited to, acquisition of data processing, telecommunications and word processing equipment, goods and services; or (3) the purchase of a specific brand name, make or model is necessary to match existing District equipment or facilitate effective maintenance and support; or (4) when it is in the best interest of the District to extend or renew a Contract from a previous contract period, based on satisfactory service, reasonable prices, avoidance of start-up costs, avoidance of interruptions to District business, or good business practices. Sole Source Purchase - Procurement where only one viable source exists. This is usually due to legal restrictions of patent rights and copyrights, a proprietary process, warranty issues, original equipment, etc. IV. GENERAL PROCUREMENT POLICIES 4.1 Procurement practices shall comply with laws, regulations and guidelines of the State of California and any other applicable law, and the provisions of grant or funding contracts, if applicable. 4.2 Any employee/individual effecting any procurement action outside of the policies and procedures established by this Policy and without General Manager or Board authorization to do so, shall be subject to disciplinary action and/or termination in accordance with District policies. 4.3 Expenditures and Contract awards must be authorized by the appropriate authorization level indicated in Table 1. 4.3.1 Separating or dividing Contracts into smaller components for the purpose of bringing the cost of one or more Contracts below any specified sum to avoid a requirement in any section of this Policy or any policy incorporated herein is strictly prohibited. Contracts may be divided only to meet unique scheduling of a project or to accommodate necessary time frames. In addition, no specifications shall be drafted in such a manner as to limit competitive bidding or solicitation directly or indirectly to any one specific vendor, or any specific brand, product, thing, or service, except for those items that are approved as exempt from competitive bidding or solicitation requirements as provided in Section 7.1.3. 4.4 Purchase amounts include taxes and the cost of shipping, freight fees and any other charges billed by the supplier or contractor for purposes of the authorization limits under this Policy. 4.5 Purchase authorization and expenditure limits in Table 1, and competitive solicitation requirements in Table 2 and as further set forth in this Policy, are on a per purchase/per contract basis and shall not be applied as an aggregate limit to any vendor, supplier, contractor or Consultant. 4.6 With the exception of the General Manager, in the absence of an authorized signatory for a given request, authorization will be obtained from the next highest authority in Table 1. 4.7 The District may use electronic commerce whenever practicable or cost-effective. The District may accept electronic signatures and records in connection with the District procurement, as permitted by applicable law. 4 YORBAINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 V. PROCUREMENT METHODS The following methods are available to initiate a purchase request or to pay for materials, services or Public Works: 5.1 Requisition/Purchase Order: Staff that require materials or services to carry out the defined duties of their positions shall submit Requisitions, in advance, for purchases in accordance with this Policy and other applicable procedures and policies of the District. The Purchasing Department will generate a PO from the Requisition. 5.2 Check Request: A check request can be used to initiate payment for certain limited materials or services without a PO. Check requests can be used to request payment for Non-Discretionary Purchases, services rendered, subscriptions, membership dues, workshop/seminar/conference registrations, use of facilities, etc. 5.3 Cal Card and Other Purchasing Cards: Designated staff may be assigned a Cal Card for miscellaneous purchases up to $1,000.00 per purchase/per day. Purchases using the Cal Card are subject to the terms and conditions of the District Cardholder Acceptance Agreement and any other applicable District Cal Card policies or procedures. Services are not to be acquired on Cal Cards due to lack of insurance and indemnification language associated with these purchases. Cal Card limits may be increased temporarily or permanently with approval by an authorized manager subject to the authorization limits in Table 1. Use of all other Purchasing Cards are subject to the terms of this Policy and to any usage terms provided at the time of card issuance to the designated staff and any subsequent amendments to such terms, and other applicable District policies. 5.4 Contracts: Provisions shall be made, either through specifications or procedures established by the District, for verification of the references and financial responsibility of the contracting parties prior to the award of a Contract. After award, all Contracts shall be executed on behalf of the District by the appropriate authorized signatory indicated in Table 1. In no case shall any Contract be made if sufficient funds are not budgeted and appropriated and not available to make payment promptly upon delivery or completion, or in accordance with a progress payment schedule, unless otherwise authorized and approved by the Board or approved by the General Manager as provided for in Section 6.2 (Emergency). 5.4.1 Contracts for Non-Professional Services, Professional Services and Public Works shall be executed when an expenditure exceeds $5,000 (except in the event of an Emergency). 5.4.2 Multiple Year Contracts are allowed when in the best interests of the District as determined, and executed by the General Manager. a. For purposes of procurement authorization, the dollar value of a Multiple Year Contract shall be the total contract value, including optional renewal periods. Once initially approved in accordance with the Policy requirements, any optional renewals may then be authorized by the General Manager at the time of renewal, regardless of the dollar amount, provided the pre-priced option is consistent with the terms of the contract as initially approved. 5 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 VI. EXCEPTIONS TO PRE-AUTHORIZATION 6.1 Non-Discretionary Purchases do not require Board approval for payment, including those that exceed the General Manager limit of $75,000. Purchase Orders are not required for Non-Discretionary Purchases. 6.2 Emergency Work/Services: The General Manager, Assistant General Manager or the assigned Operations Manager may authorize Emergency expenditures for work, services, and/or supplies where the cost exceeds $75,000 without prior Board approval. The Board shall be notified of any expenditures for Emergency work, services and/or supplies exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. 6.3 Purchase requests to replenish the District’s warehouse inventory within established inventory re- order levels require no prior authorization or signatory approval under Table 1. VII. COMPETITIVE SELECTION PROCESS 7.1 General. A competitive selection process for procurement of services and materials, and for Public Works projects, is required in accordance with the limits as set forth in Table 2 below (subject to certain exceptions, qualifications or limitations as further set forth below). Table 2 Competitive Solicitation Process - Requirements Purchase Amount Solicitation Requirement $25,000 and under One Quote $25,001 - $50,000 Two Quotes $50,001 - $75,000 Three Quotes $75,001 and over RFP or RFQ or Invitation to Bid Process Required 7.1.2 Competitive Solicitation - Submission. i) All quotes, bids and proposals must be in writing. Email is acceptable for expenditures under $75,000. ii) RFP, RFQ, and Invitation to Bid submissions must be in writing and be in substantial compliance with terms in the solicitation, or as otherwise required by law, or may be disqualified. iii) Quotes, bids and proposal documentation shall be retained pursuant to the District’s record retention policy. 6 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 7.1.3 Exceptions from Competitive Solicitation Process - Generally. Solicitation of bids or proposals is preferable whenever practicable. In addition, to the exceptions stated under Section 7.3.2, the competitive solicitation requirements set forth under Table 2 may be waived when any of the following is applicable: • Sole Source Purchases. • Single Source Purchases. • Emergency expenditures. • Supplies, materials or equipment procured through a Cooperative Purchasing program with federal, state, county, or other public agencies. • After a reasonable attempt has been made to obtain competitive quotes/ responses and it has been determined that no additional suppliers/providers/contractors/Consultants can be located; the District has a lack of response from suppliers/providers/contractors/Consultants to a competitive solicitation; or, when sufficient, satisfactory bids/proposals are not received, based on the District’s sole discretion. • Purchases to replenish the District’s warehouse inventory within established inventory re- order levels. • As dictated by law. 7.1.4 It shall be at the discretion of the General Manager, Assistant General Manager or Department Manager(s) to determine whether an expenditure meets the qualifications listed herein to be exempt from a competitive solicitation, subject to any Board authorization. 7.2 Public Works. Contracts for Public Works projects shall conform to applicable requirements for Public Works contracts under State law, including but not limited to requirements relating to listing of subcontractors, posting of a payment bond in an amount not less than 100% of the total contract amount (for all Public Works contracts over $25,000) and payment of prevailing wages (for all contracts for Public Works exceeding $1,000), or as otherwise required by statute. Unless specifically waived by the District with the approval of the General Manager and District’s legal counsel, the District shall require performance bonds for all Public Works Contracts in an amount not less than 100% of the total contract amount,. Public Works Contracts let by an Invitation to Bid shall be awarded to the lowest responsive, responsible bidder in accordance with State law and the District’s standard Public Works contract documents. 7.3 Professional Services (over $75,000). RFPs will be initiated pursuant to the limits set forth in Table 2 when the Contract is anticipated to exceed $75,000, unless the District’s needs mandate uniquely qualified services, in which case only one proposal from a qualified firm may be solicited. Professional Services shall be engaged in accordance with California Government Code §4525 et seq., on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the District. 7.3.1 Professional Engineering Services. The District may request proposals for engineering services when the contract amount is anticipated to exceed $25,000, and up to $75,000. For engineering services anticipated to exceed $75,000, RFPs will be initiated pursuant to the limits set forth in Table 2. 7.3.2 Exceptions from Competitive Solicitation Process – Professional Services. In addition to the exception for “uniquely qualified services” set forth under Section 7.3, the following criteria shall apply as exceptions to the competitive solicitation requirements set forth under Table 2 for Professional Services where such requirements would otherwise apply: 7 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 • For Professional Services estimated to cost $25,000 or less, staff may request a proposal from one (1) qualified Consultant. • For Public Works projects where the project design is scheduled in phases, the related Professional Services may be negotiated with the Consultant that performed the work for a prior phase, if the Consultant performed satisfactory work on the prior phase(s) in terms of quality, schedule and estimated design costs and a satisfactory Contract can be negotiated. • For Professional Services in which it is impracticable to comply with the selection process because of the unique, exploratory or experimental nature of the project, staff may request a proposal from one (1) qualified Consultant. 7.4 Rejecting Competitive Responses - In response to an Invitation to Bid, RFQ, or RFP, the District may reject a bid or other response which is in any way incomplete, irregular, amplified, unqualified, conditional or otherwise not in compliance with the solicitation documents in all material respects, and in accordance with law. The District may waive any informality, irregularity, immaterial defects or technicalities in any bids or other responses received; and/or cancel an invitation for bids or RFP/RFQ, or reject all bids or responses for any other reason, which indicates the cancellation or rejection of all bids or responses is in the best interest of the District, and in accordance with law. Rejection of all bids or responses or cancellation of competitive solicitations, including determinations to re-bid, or re-solicit are subject to the same level of authority which is required to award a Contract as provided under Table 1, and as required by law. 7.5 In the case of RFPs and RFQs, the General Manager and the Board reserve the right to award Contracts based upon the best interests of the District, as determined by the District in its sole discretion. VIII. CHANGE ORDERS 8.1 Change Orders may be issued from time to time as required by changes in the specifications or conditions of a project, services performed or materials issued. 8.1.1 Change Orders – PO Only. Change Orders up to 10% (to a maximum additional $1,000) of the original PO amount may be issued by the appropriate Department Manager without further approvals. A revised Purchase Order Requisition must be completed and approved at the appropriate authorization levels under Table 1 for any Change Order request exceeding the original amount by more than 10% or the $1,000 limit. 8.1.2 Change Orders – Formal Contracts and Amendments. (1) For Contracts and Amendments under $75,000: a. Change Orders up to 10% of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table 1 up to a maximum total Contract amount of $75,000 without Board approval. b. Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a total Contract amount over $75,000. (2) For Contracts and Amendments $75,001 and over: 8 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 a. Change Orders up to 10% (to a maximum additional $75,000) of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table 1 without Board approval. b. Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a $75,000 increase. 8.1.3 A Change Order exceeding the Change Order limits set forth in this article may be authorized by the General Manager prior to Board approval if, in the General Manager’s determination, any of the following circumstances exist: (1) A delay in Change Order authorization could result in a negative financial impact to the District. (2) A delay in Change Order authorization could result in damage to or impairment of the operations of a District facility. (3) An Emergency exists which requires immediate work/services. The Board shall be notified of any Change Order authorization exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. IX. ETHICAL PROCUREMENT- CONFLICT OF INTEREST 9.1 Board members, District officers and employees shall not be financially interested in any contract made by them in their official capacity. (Government Code Section 1090). Board Members, District officers and employees shall not participate in any way to influence a governmental decision in which he/she knows or has reason to know that he/she has a financial interest. (Government Code Section 87100) 9.2 Any District employee (other than Administrative Personnel not under Designated Positions in the District’s Conflict of Interest Code) authorized under this Policy to make or enter into purchases on behalf of the District will complete a Statement of Economic Interests (Form 700) and comply with the District’s Conflict of Interest Code. 9.3 Confidential or proprietary information must be handled with due care and proper consideration of ethical and legal ramifications and governmental regulations. 9.4 Purchasing activities must be performed in accordance with all applicable laws and District policies. 9.5 Any employee/individual who violates the standards set forth in this Section shall be subject to disciplinary action consistent with District personnel policies. X. COUNTY WATER DISTRICT STATUS Notwithstanding anything to the contrary in this Policy, the District is a County Water District and therefore is not mandated by State law to competitively bid any purchases, including those for Public Works projects and/or capital expenditures. The District is free to enter into non-bid contracts for Public Works, to purchase materials, services and supplies, to contract for design-build work, to utilize job-order contracting and to enter into Cooperative Purchasing arrangements for the design, construction and maintenance of Public Works, or undertake any other form of contracting determined to be in the District’s best interest, except as otherwise expressly restricted by law. 9 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 XI. POLICY REVISIONS This document will be maintained and revised by the General Manager with his/her designated representatives in consultation with the District’s legal counsel, subject to approval by the Board. Revisions will occur whenever applicable Federal, State or local regulations change or otherwise as the need arises and in the discretion of the Board. XII. POLICY APPROVAL AND ADOPTION This Policy has been reviewed by the Yorba Linda Water District Board of Directors and adopted by Resolution No. 17-XX on August XX, 2017. 10 YORBA LINDA WATER DISTRICT – Purchasing Policy Adopted August xx, 2017 OULTON NIGUEL WATER DISTRICT PURCHASING POLICY; ADOPTED ON SEPTEMBER 17, 2014 RESOLUTION NO. 13-03 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING FORTH A PROCUREMENT AND PURCHASING POLICY AND RESCINDING RESOLUTION NO. 11-06 WHEREAS, the District established a Purchasing Policy by adopting Resolution No. 88-12 on March 24, 1998; and WHEREAS, the District modified the Purchasing Policy by rescinding Resolution No. 88-12 and adopting Resolution No. 91-13 on May 16, 1991; and WHEREAS, the District modified the Purchasing Policy by rescinding Resolution No. 91-13 and adopting Resolution No. 02-01 on June 13, 2002; and WHEREAS, the District modified the Purchasing Policy by rescinding Resolution No. 02-01 and adopting Resolution No. 07-11 on June 28, 2007; and WHEREAS, the District modified the Purchasing Policy by rescinding Resolution No. 07-11 and adopting Resolution No. 11-06 on March 10, 2011; and WHEREAS, from time to time it is necessary to review the Purchasing Policy and to make modifications that reflect current District procedures, public policy demands and economic conditions. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Yorba Linda Water District shall establish the following policies: Section 1: Property, Repairs and Modifications, Supplies and Services The following procedures and authority will be used for the acquisition or leasing of personal property; repair or modification of District equipment or structures; or obtaining labor, materials, supplies or services as identified in the budget: Dollar Amount Procedure Authority 0-5,000 1 Written Quote Dept. Manager 5,001415,000 2 Written Quotes General Manager 15,001-$25,000 3 Written Quotes General Manager 25,001-$75,000 3 Written Quotes Board of Directors 75,001 Competitive Bid Board of Directors Resolution No 13-03 Modifying the District's Purchasing Policy and Rescinding Resolution No. 11-06 1 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Section 2: Capital Outlay, Improvement and Replacement Projects The following procedures and authority will be used for vehicles and equipment, fire hydrants, water and sewer pipelines, booster pump stations, reservoirs, etc. as identified in the budget: Dollar Amount Procedure Authority 0415,000 2 Written Quotes Dept. Manager 15,001-$25,000 2 Written Quotes General Manager 25,0014100,000 3 Written Quotes Board of Directors 100,001 Competitive Bid Board of Directors Section 3: Contract Amendments and Change Orders The following procedures and authority will be used for contract services amendments, professional service contract amendments and for capital projects where the change order does not alter project completion time: Dollar Amount Procedure (') Authority 5% of Project Cost, NTE $7,500 Notify GM Dept. Manager 10% of Project Cost, NTE $15,000 Notify BOD General Manager 10% of Project Cost, NTE $25,000 Notify BOD General Manager 10% of Project Cost or > $25,000 Agenda Item Board of Directors Section 4: Contractual Services Policy The following procedures and authority will be used for professional services such as engineering consultant, legal counsel, auditors, etc. as identified in the budget: Dollar Amount Procedure Authority 0-$ 5,000 1 Written Proposal Dept. Mgr 5,001415,000 2 Written Proposals General Manager 15,001-$25,000 3 Written Proposals General Manager 25,001 3 Written Proposals Board of Directors Section 5: Non-scheduled Capital Asset Repair and Replacement The following procedures and authority will be used for the acquisition of personal property; repair or modification of District equipment or structures; or obtaining labor, materials, supplies or services related to non-scheduled capital asset repair and replacement: Dollar Amount Procedure (') Authority 0- 10,000 Notify GM Dept. Manager 10,001-$25,000 Notify Committee General Manager 25,001-$50,000 Notify BOD General Manager 50,001 Agenda Item Board of Directors Resolution No. 13-03 Modifying the District's Purchasing Policy and Rescinding Resolution No. 11-06 2 Section 6: Emergency Policy The following procedures and authority will be used in emergency situations for events which require immediate extraordinary action to protect the public health, safety, welfare and property, with ratification by the Board at the next meeting or the earliest special meeting that may be called. Dollar Amount Procedure (') Authority 04100,000 Notify BOD General Manager 100,001 Next or Special Mtg. Board of Directors In all cases where notification is required, a written memo shall be provided stating the reasons for the approval by the designee. Section 7 Effective: The Purchasing Policy adopted herein shall take effect immediately upon adoption of this Resolution. Section 8 Rescinding: That Resolution No. 11-06 and conflicting Minute Orders are hereby rescinded upon adoption of this resolution. PASSED AND ADOPTED this 14th day of February 2013 by the following called vote: AYES: Directors Beverage, Collett, Hawkins, Kiley and Melton NOES: None ABSTAIN: None ABSENT: None Gary M on, President Yorb inda Water District ATT Steve onklin, oard Secretary Yorba Linda Water District ilk Review as to form by General Counsel: 1W rt ur G. Cidma , Esq. Kidman Law LLP Resolution No. 13-03 Modifying the District's Purchasing Policy and Rescinding Resolution No. 11-06 3 Item 9.1 –Discussion –August 8, 2017 Update of Procurement and Purchasing Policy August 8, 2017 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Item 9.1 –Discussion –August 8, 2017 Policies in the past were limited to resolutions with 6 separate sections •Section 1: Property, Repairs and Modifications, Supplies and Services •Section 2: Capital Outlay, Improvement and Replacement Projects •Section 3: Contract Amendments and Change Orders •Section 4: Contractual Services Policy •Section 5: Non-scheduled Capital Asset Repair and Replacement •Section 6: Emergency Policy Purchasing Policy Last Updated February 14, 2013 Item 9.1 –Discussion –August 8, 2017 Section 1: Property, Repairs and Modifications, Supplies and Services The following procedures and authority will be used for the acquisition or leasing of personal property; repair or modification of District equipment or structures; or obtaining labor, materials, supplies or services as identified in the budget: Dollar Amount Procedure Authority $0-5,000 1 Written Quote Dept. Manager $5,001-$15,000 2 Written Quotes General Manager $15,001-$25,000 3 Written Quotes General Manager $25,001-$75,000 3 Written Quotes Board of Directors >$75,001 Competitive Bid Board of Directors Item 9.1 –Discussion –August 8, 2017 Section 2: Capital Outlay, Improvement and Replacement Projects The following procedures and authority will be used for vehicles and equipment, fire hydrants, water and sewer pipelines, booster pump stations, reservoirs, etc. as identified in the budget: Dollar Amount Procedure Authority $0-$15,000 2 Written Quotes Dept. Manager $15,001-$25,000 2 Written Quotes General Manager $25,001-$100,000 3 Written Quotes Board of Directors >$100,001 Competitive Bid Board of Directors Item 9.1 –Discussion –August 8, 2017 Section 3: Contract Amendments and Change Orders The following procedures and authority will be used for contract services amendments, professional service contract amendments and for capital projects where the change order does not alter project completion time: Dollar Amount Procedure (*)Authority 5% of Project Cost, NTE $7,500 Notify GM Dept. Manager 10% of Project Cost, NTE $15,000 Notify BOD General Manager 10% of Project Cost, NTE $25,000 Notify BOD General Manager >10% of Project Cost or > $25,000 Agenda Item Board of Directors Item 9.1 –Discussion –August 8, 2017 Section 4: Contractual Services Policy The following procedures and authority will be used for professional services such as engineering consultant, legal counsel, auditors, etc. as identified in the budget: Dollar Amount Procedure Authority $0-$5,000 1 Written Proposal Dept. Mgr $5,001-$15,000 2 Written Proposals General Manager $15,001-$25,000 3 Written Proposals General Manager >$25,001 3 Written Proposals Board of Directors Item 9.1 –Discussion –August 8, 2017 Section 5: Non-scheduled Capital Asset Repair and Replacement The following procedures and authority will be used for the acquisition of personal property; repair or modification of District equipment or structures; or obtaining labor, materials, supplies or services related to non-scheduled capital asset repair and replacement: Dollar Amount Procedure (*)Authority $0-10,000 Notify GM Dept. Manager $10,001-$25,000 Notify Committee General Manager $25,001-$50,000 Notify BOD General Manager >$50,001 Agenda Item Board of Directors Item 9.1 –Discussion –August 8, 2017 Section 6: Emergency Policy The following procedures and authority will be used in emergency situations for events which require immediate extraordinary action to protect the public health, safety, welfare and property, with ratification by the Board at the next meeting or the earliest special meeting that may be called. Dollar Amount Procedure (*)Authority $0-$100,000 Notify BOD General Manager >$100,001 Next or Special Mtg.Board of Directors *In all cases where notification is required, a written memo shall be provided stating the reasons for the approval by the designee. Item 9.1 –Discussion –August 8, 2017 New Policy •More Robust •Style and substance has been vetted by legal •More flexibility but greater accountability We integrated Best Management Practices (BMP’s) as recommended by the Government Finance Officers Association (GFOA) and by surveying other Water Districts in Orange County. Item 9.1 –Discussion –August 8, 2017 Questions? Item 9.1 –Discussion –August 8, 2017 ITEM NO. 9.3 AGENDA REPORT Meeting Date: August 8, 2017 Subject:Development of Water Shortage and Drought Response Plan (Jones) ATTACHMENTS: Name:Description:Type: Presentation_-_Item_9.3.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material Item 9.3 –Discussion –August 8, 2017 Budget-Based Drought Rates Director Brooke Jones August 8, 2017 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Item 9.3 –Discussion –August 8, 2017 •There will be another drought –we should be prepared with a plan in place •The state is driving hard toward budget-based rates •Our Ad Hoc Citizens Advisory Committee recommended budget-based rates •My suggestion: examine budget-based rates as a foundation for our plan Plan for Drought Item 9.3 –Discussion –August 8, 2017 •In a drought, EFFICIENT water usage is the key •Budget-based rates provide efficiency independent of lot size •Budget-based rates eliminate unfair penalties •Drought rates can be budget-based while normal rates remain uniform Why a Budget-Based Drought Plan Item 9.3 –Discussion –August 8, 2017 ITEM NO. 9.4 AGENDA REPORT Meeting Date: August 8, 2017 Subject:Comparison of Retail Water Rates (Miller) SUMMARY: There are numerous factors which demonstrate the differences between rates of retail water agencies. Those factors include the following: 1. Source of Supply - Metropolitan vs. local groundwater 2. Distance to Metropolitan import pipelines 3. Service area elevation and pumping required 4. Make-up of adjacent service areas 5. Ability to interconnect with surrounding agencies 6. Age of system 7. Service area mix of commercial, industrial, single family, etc. 8. Density and lot sizes 9. Customer income 10. Funding of capital - pay as you go vs. debt financing 11. Funding of repairs, replacements and depreciation 12. Water only vs. water and sewer by same agency 13. Recycling supplies and conservation philosophy 14. Recovery of administrative services by municipalities 15. Level of grant funding or other funding incentives 16. Rate setting philosophy and methodology 17. Funding of growth through developers or water rates 18. Level of taxes to agency 19. Necessary level of reserves (cash flow, replacement, rate stabilization, etc.) 20. Public input during ratemaking 21. Metering policy - per unit or per complex 22. Level of treatment required for local supplies DISCUSSION: In Orange County, there are numerous types of wholesale and retail water districts. On the Wholesale side there are three wholesale Districts: Municipal Water District of Orange County, the Orange County Water District, and the East Orange County Water District. On the retail side there are Special Districts, Mutual Water Companies, Investor Owned Utilities, and City or Municipal Water Agencies. The retail agencies are as follows: City of Anaheim, City of Brea, City of Buena Park, Cal Domestic Mutual Water Company, East Orange County Water District (retail), El Toro Water District, Emerald Bay Service District, City of Fountain Valley, City of Fullerton, Golden State Water Company (three divisions), City of Garden Grove, City of Huntington Beach, Irvine Ranch Water District, Laguna Beach County Water District (dependent), City of La Habra, City of La Palma, Mesa Water District, Moulton Niguel Water District, City of Newport Beach, City of Orange, City of San Clemente, City of San Juan Capistrano, City of Santa Ana, Santa Margarita Water District, City of Seal Beach, Serrano Water District, South Coast Water District, Trabuco Canyon Water District, City of Tustin, City of Westminster, and the Yorba Linda Water District. Retail water rate setting is a complicated and complex process that varies somewhat from jurisdiction to jurisdiction. Prior to making a comparison it is imperative to review the rate setting process and the factors involved. Retail water rate setting involves capturing the external costs of importing from Metropolitan or producing the water from local sources, the internal costs of distribution and service and establishing the financing or funding sources for these costs. There are understandable reasons, both physical and philosophical, that cause retail rates to vary from agency to agency. Providing a reliable and high quality water supply system for existing and future users is a capital-intensive process. Water rates are significantly affected by the level of capital funding required, the financing mechanisms and the other sources of revenue available to an agency. Sources and Uses of Funds Available to a Water Utility The sources of funds available to a water utility for any use (not restricted in the type of use) include: Retail water sales, fixed service charges on monthly or bimonthly basis plus variable charges based on water use, wholesale water sales for those agencies that provide water to other agencies, fees charged for services rendered (such as engineering and plan check fees), delinquent penalties for non-payment, investment earnings on funds set aside, rents from properties and tax revenues from the general 1% property tax levy (not all agencies receive these funds). Sources of funds that are restricted for use only for capital improvements include: Voter authorized taxes and assessments, developer and customer contributions such as connection charges, development impact fees and contributed facilities, standby charges, proceeds from long- term financings, redevelopment funds, grants in aid of construction and investment earnings. If these sources of funds are not used or only partially cover the capital improvements necessary, water sales revenue must be structured to carry a heavier burden. The uses of funds for a water utility include (1) the external costs of getting the supply to the agency, water costs, pumping, storage and water treatment; (2) the internal costs of transmission, distribution and storage to serve the consumers, customer service (billing, meter reading, etc.) and general and administrative expenses (including insurance, office and office maintenance costs and office staff); (3) the funding requirements for debt service and capital improvements (new construction, replacements and upgrades and rehabilitation). Geographical Factors Affecting Water Rates It is likely that the two most predominant geographical factors affecting retail water rates from area to area are (1) whether an area receives local groundwater from the lower Santa Ana River groundwater basin managed by Orange County Water District (OCWD), and (2) how much pumping is required to provide water throughout an agency's service area. Portions of the county overlie the OCWD groundwater basin area. Water supplies produced from the basin area cost considerably less than the cost of receiving imported water from MWD. The costs of pumping water do not include the production costs and do not include the costs of distribution, storage, treatment or pumping (except to pump the groundwater to system pressure). The next geographical factor affecting retail rates is the proximity to the MWD feeders. MWD feeders are Metropolitan facilities and paid for by water rates paid when purchasing imported water. The local agency feeders have had to be constructed, operated, maintained and repaired with local agency funding in addition to the water rates paid to Metropolitan. Once again, the agencies overlying the groundwater basin are generally those agencies which lie in close proximity to the MWD feeders as they crisscross the northern portion of the county, and hence, these agencies do not incur additional costs for facilities to distribute the MWD supplies. Some of the agencies had to build transmission pipelines 20 to 30 miles to get the water into their service area from where the MWD lines stop. Considerable costs are incurred for these extensions. Another significant geographical factor is that of system elevation and the pumping necessary to lift the water to the service elevation of the homes and businesses. For example, Trabuco Canyon WD must pump virtually 100% of its import supplies to serve its consumers in the 1100 foot to 1400 foot service elevations of the foothills of the Santa Ana Mountains. The cost for pumping to the higher elevations must be factored into the retail rate. Some agencies charge a similar rate throughout their service area while other agencies charge more to residents living at a higher elevation. For example, the first block of water in the IRWD service area is set at a uniform level, however, a pumping surcharge is imposed for the pumping required to get the water to the higher elevation of the Portola Hills service area of IRWD, thus raising the rate on the first block of water sold to customers in Portola Hills. In addition, those areas with hilly terrain include multiple service elevations and the associated facilities, capital costs and O&M costs for additional pump stations, reservoirs and pressure reducing stations. Both San Juan Capistrano and Laguna Beach are examples of this type of terrain that ultimately leads to higher consumer costs. Also, in communities surrounded by vast areas of open-space vegetation, provision of sufficient storage for fire fighting is an added cost. The last geographical factor influencing water rates is that of treatment requirements. For example, the areas furthest away from the MWD sources are required to rechlorinate the supplies as they are conveyed to the service areas to protect against bacterial growth. Also, some areas of the groundwater basin contain contaminants or constituents such as high salts or color that must be removed - sometimes a very expensive process that can drive the costs of local water to that of MWD water or beyond. Rate Design - Identifying Costs and Funding Them Rate Design involves figuring out the revenue needs and how to structure and establish the rates within a service area to generate the required revenue. The costs of a water system vary for geographical reasons, but they also vary due to the age of the system, the level of development required to meet the customer mix in the service area (newly developing areas, types of businesses and their water needs and the need to meet fire flow requirements) and due to the cost allocation methodology to the various customer groups and also due to the philosophical factors of an agency such as providing lifeline service at minimal costs. Times have changed since the passage of Proposition 13 in 1978 which lowered tax revenue and eliminated the use of general obligation bonds as a financing vehicle for capital improvements, unless voter approval is secured. Decisions must be made regarding how to fund new growth - whether through bonds other than general obligation bonds, a connection or meter fee, a fixed charge collected through an assessment district or directly with revenue generated through water sales. All of these options will affect what the consumer sees when he pays his monthly or bimonthly water bill. There are many theories for the allocation of both fixed and variable costs within a retail water service area and how to fund them through the water rates. Some propose that all fixed costs be funded via a fixed revenue source such as the fixed monthly or bimonthly service charge to consumers and that the commodity rate be structured to cover the variable costs of water such as the cost of the source water itself, treatment costs and pumping costs. Others subscribe to different theories. The theory adopted by the local jurisdiction needs to reflect the philosophy of the constituents. Lastly, the level of conservation and recycling in a community also affects the retail water rates. These efforts typically require capital expenditures and may actually result in somewhat higher costs in the short run but will save costs in the long run as the availability of these sources (or reduced demand) offsets the need for higher cost imported supplies. In addition, the lot size and home size of the community served will also affect the rate structure design and the actual rates charged. Purpose and Function of “Reserve Funds” The level of "reserve funds" is indirectly related to the process of setting rates, but still very important. Reserve funds are misunderstood by some and construed to be "bad", yet reserve funds have a necessary and usually specific purpose. True "reserves", similar to our own personal savings accounts that are used for unexpected purposes or that have been set aside for specific planned uses, can be distinguished from "encumbered" funds that are necessary for specific financial or legal purposes. Reserve funds include many types of funds with specific uses; these include (1) Working Capital Funds to meet cash flow purposes, (2) Construction Funds from bond proceeds that generally must be spent within three years of issuance, (3) Rate Stabilization Funds to moderate short term rate fluctuations, (4) Debt Service Funds to collect funds and make debt service payments when due, (5) Conservation Revenue Funds which all agencies may not have but which collect payments from high water users and reinvests in the system for conservation purposes and (6) Self Insurance Funds, similar to normal business insurance funds. The only "true" reserves are made up of (7) Capital Replacement Funds, which all agencies do not necessarily have, which consist basically of funds set aside for future improvements and (8) Emergency Repair Funds which is a contingency fund to handle emergencies (also a normal business requirement). Variances exist in these funds when compared from agency to agency. In part, the differences are explained by the development cycle of a water supply system. Initially in the development cycle, when an agency is "young," an agency incurs disproportionately high costs because investments are made not only to meet the existing needs but also as an investment to minimize future costs (e.g., only certain components of a treatment plant can be phased on a capacity basis, a pipeline is constructed to supply existing demands and some level above that for meeting future demands). In the next part of the cycle, as an agency "ages," smaller investments are required on an incremental basis as demands build because the system is supported by past investments; however, it is also at this time that preparations must be made to bridge to the third phase, which is that of an older system that requires high repair, maintenance and replacement obligations (this is when capital replacement funds come in handy). An agency can approach Replacement Funds in three manners or a combination thereof, (1) "pre-paying" by setting aside funds for the future, (2) "pay-as-you-go" in which annual capital requirements are generated directly from water sales, or (3) "post pay" in which debt is issued and the payments for the improvements are made over time into the future. How replacements are handled is up to the discretion of the governing board with input from the community at the time of rate setting and budget adoption. CONCLUSION It is not always possible to make an “apples to apples” comparison of rates. An investor owned utility, such as Golden State Water Company, will always show higher water rates than their neighbors. However, their rates appear higher because they are required to show the entire cost of their water and are unable to supplement their operations with property tax revenue. An example of significant reliance on property taxes to supplement rates and operations would be Moulton Niguel Water District which funds roughly half of their rates and operations through property taxes. ATTACHMENTS: Name:Description:Type: Presentation_-_Item_9.4.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material Item 9.4 –Discussion –August 8, 2017 Comparison of Retail Rates August 8, 2017 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Item 9.4 –Discussion –August 8, 2017 1. Source of Supply -Metropolitan vs. local groundwater 2. Distance to Metropolitan import pipelines 3. Service area elevation and pumping required 4. Make-up of adjacent service areas 5. Ability to interconnect with surrounding agencies 6. Age of system 7. Service area mix of commercial, industrial, single family, etc. Comparison of Retail Rates Item 9.4 –Discussion –August 8, 2017 8. Density and lot sizes 9. Customer income 10. Funding of capital -pay as you go vs. debt financing 11. Funding of repairs, replacements and depreciation 12. Water only vs. water and sewer by same agency 13. Recycling supplies and conservation philosophy 14. Recovery of administrative services by municipalities 15. Level of grant funding or other funding incentives Comparison of Retail Rates, Cont. Item 9.4 –Discussion –August 8, 2017 16. Rate setting philosophy and methodology 17. Funding of growth through developers or water rates 18. Level of taxes to agency 19. Necessary level of reserves (cash flow, replacement, rate stabilization, etc.) 20. Public input during ratemaking 21. Metering policy -per unit or per complex 22. Level of treatment required for local supplies Comparison of Retail Rates, Cont. Item 9.3 –Discussion –August 8, 2017 •Northwest –City of Brea Cal Domestic Water & MWDOC Imported Water •South –City of Anaheim Orange County Groundwater Basin & MWD Imported Water •West & Internally –Golden State Water Company Orange County Groundwater Basin & MWDOC Imported Water Contiguous Districts Item 9.3 –Discussion –August 8, 2017 Discussion and Direction Item 9.3 –Discussion –August 8, 2017 ITEM NO. 11.1 AGENDA REPORT Meeting Date: August 8, 2017 Subject:Interagency Committee with MWDOC and OCWD (Miller/Nederhood) · Minutes of meeting held July 27, 2017 at 4:00 p.m. · Next meeting scheduled September 28, 2017 at 4:00 p.m. ATTACHMENTS: Name:Description:Type: 2017-07-27_-_Minutes_-_YLWD-MWDOC-OCWD.docx Minutes Minutes Minutes of the YLWD/MWDOC/OCWD Interagency Committee Meeting Held July 27, 2017 at 4:00 p.m. 1 MINUTES OF THE YORBA LINDA WATER DISTRICT INTERAGENCY COMMITTEE MEETING WITH MWDOC AND OCWD Thursday, July 27, 2017, 4:00 P.M. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 4:00 p.m. 2. ROLL CALL YLWD COMMITTEE MEMBERS YLWD STAFF J. Wayne Miller, President Marc Marcantonio, General Manager Al Nederhood, Vice President Steve Conklin, Engineering Manager John DeCriscio, Operations Manager MWDOC COMMITTEE MEMBER MWDOC STAFF Brett Barbre, Director Rob Hunter, General Manager OCWD COMMITTEE MEMBER OCWD STAFF Roger Yoh, Director (absent) Mike Markus, General Manager OTHER ATTENDEES Brook Jones, YLWD Director (As observer only - non-participatory.) 3. PUBLIC COMMENTS None 4. DISCUSSION ITEMS 4.1. Current Water Conservation Legislation Director Barbre reported that the State Legislature is currently in recess and thus there has been no action on any of the conservation bills. There was also discussion on SB 623, a bill advocating for the provision of safe, potable water for all residents of California. How this would be accomplished and at what cost is up for debate, but often mentioned is a fee on water service. 4.2. MWD Water Supply Conditions and Outlook Director Barbre reported plentiful water supply conditions for MWD and that MWD is in the process of transferring an estimated 1.1 million acre- feet of this supply into storage, both above and below ground. Minutes of the YLWD/MWDOC/OCWD Interagency Committee Meeting Held July 27, 2017 at 4:00 p.m. 2 4.3. Status of Oroville Reservoir and State Water Project Deliveries Director Barbre reported that rebuilding of the Oroville spillway is proceeding at full speed. Regarding deliveries of SWP water, it is limited due lack of places for the water in southern California. 4.4. Condition of OCWD Groundwater Basin Mr. Markus reported that with the planned purchase of 65,000 AF of MWD full-service untreated water for recharge in the Forebay, and the planned purchase of up to 100,000 AF of MWD treated water through the In-lieu program, the groundwater basin will see a significant reduction in overdraft. He indicated that the basin is expected to rebound from its current overdraft of 380,000 AF to an overdraft in the range of 150,000 to 200,000 AF by July 2018. 4.5. OCWD Replenishment Assessment, Basin Production Percentage and Budgeted Water Purchases The RA and BPP remain as previously reported. See above regarding water purchases. 4.6. MWD’s Request for Conjunctive Use Program Storage and Potential Cyclic Storage Agreement Mr. Markus reported that the Cyclic Storage Agreement (CSA) has been approved by MWD, MWDOC and OCWD. Under that agreement, the Groundwater Producer agencies will be purchasing MW D water in-lieu of pumping groundwater from the basin, as a means of reducing demand on the basin and reducing the overdraft, as noted in Item 4.4 above. As a condition of the CSA, MWD will not be initiating any recharge in the basin under the CUP while the CSA is in force. 4.7. MWDOC’s New Budget No new information provided. 4.8. MWDOC’s OC Water Reliability Investigation Mr. Hunter reported that limited work is continuing on updates to the potential water supply alternatives. 4.9. PFOS/PFOA Testing and Mitigation Mr. Conklin reported that YLWD has been testing PFOS and PFOA concentrations in its groundwater blend at Highland every two weeks and at each well every three months for almost one year. Over this time Minutes of the YLWD/MWDOC/OCWD Interagency Committee Meeting Held July 27, 2017 at 4:00 p.m. 3 period, YLWD has been able to produce a blend at Highland that is in compliance with the EPA advisory level of less than 70 parts per trillion. Following a review meeting with OCWD Water Quality Dept staff, and after receiving concurrence from staff of the SWRCB–DDW, YLWD will be reducing the sampling and testing for PFOS and PFOA to once every quarter at the Highland blend and at each well. 4.10. Huntington Beach Desalination Project Mr. Markus reported that Poseidon continues to pursue approval of the project. Approvals being sought are from the State Lands Commission, the RWQCB and the Coastal Commission, in that order. OCWD will still need to decide if it wants to buy into the project, paying the Poseidon price for the desalted water and paying for all the infrastructure to deliver the water from the treatment plant to the use points. 4.11 California WaterFix Project Director Barbre reported that the project has received some recent environmental approvals, though several major hurdles remain. Governor Brown will be pushing for approval over the next year. Even if it gets approval, it is expected that there will be multiple lawsuits filed to stop it from proceeding. So, at best, it will be many years before the project can proceed and longer yet to build. 4.12. North and South Basin Projects Mr. Markus reported that Gov. Brown has concurred with the request by OCWD that the North Basin Project be listed on the National Priorities List. Having the project on EPA’s NPL may make it possible to get Northrup and other PRPs back to the bargaining table for potential settlement and payment of project costs. He also noted that the EW-1 Project is expected to come on line in September, which is an extraction well to pump out approximately one MGD of contaminated groundwater and discharge it to the sewer. 4.13. YLWD Well Projects Mr. Conklin reported that Well 21 is ready to go into operation, which includes a pipeline turnout to which OCWD can connect for water for landscape irrigation and to fill water trucks. He also noted that the YLWD Board has certified the CEQA MND for the Well 22 Project, and that staff is proceeding with preparation of specifications and bidding documents for the drilling of Well 22. Minutes of the YLWD/MWDOC/OCWD Interagency Committee Meeting Held July 27, 2017 at 4:00 p.m. 4 4.14. Future Agenda Items None. 5. ADJOURNMENT 5.1. The meeting was adjourned at 5:50 p.m. SC ITEM NO. 12.7 AGENDA REPORT Meeting Date: August 8, 2017 Subject:WACO - August 4, 2017 (Jones/Miller/Nederhood) ATTACHMENTS: Name:Description:Type: Backup_Material_-_Item_12.7.pdf Backup Material Distributed Less Than 72 Hours Prior to the Meeting Backup Material R Se ' buted' m.. ss Than 72 Hours Prior to the Meeting NMI r 'Fit lop r Tw w � V46 Vol � Ire T � , / ♦ - 11 N 1, ' « ` 1 r A r• � —1 • j t . . � Cant °n ... - T. � , ro h T. ML a Scale ( Miles) ~� r. °" - � Sesp Formafion • �' � ' ' /py Sesp Aquifer Area Over 12 000 acres with 2 000 acres overlap ith Vaqueros Formation on fn Ilk a ire* dog% rirmn f% n �IMP , '` "�w � Assume 10 , 000 a cres ` �� Ver 000 feet ick Off A foNN �,� 4?o �J�f 20 - p rcent specific yield - —Frma � � �/ 1t 2000 a c emm e et of groundwater dpft h_l • - of of aquifer mi lion acre - feet storage IWO& Ar � :� - - Modifi d Map After DWR ( 1972 ) . � , , Y y lt, a Ar aeo ogy — Plate 3 IL R • - �. Sespe Aqu *ifer ' em . ; - L � r: in ou ran a oun r An overlooked large new groundwater reservoir -%.1 for municipal water supplies in the northern w San Juan Creek Basin Watershed Key Proposed OC Parks Participation — Use of O'Neill Park's Large Trabuco Creek 100-Year Floodzon 'Area for Cascading Percolation Groundwater Recharge Basin .4% to Enhance Environmental Habitats, Conserve Ou Water . Resources & Reduce Downstream F ood Damages � ti g y � " dk low4hr• - Kelly E. Rowe, CFM, PG, CEG, CH, Hydrogeology SpecialistY - ; w " Watershed, Water Resources & Environmental Management Consultant` . ' t up ateral4 Less Th-79V,Hours Prior to the Weting STATE OF CALIFORNIA Areal DWR 1972 Report Areal C-seology-Plate 3 The Resources Agency Department a� Water Resources t ��� - Sespe Aquifer Sespe Formation/ Development 5espe Aquifer A yea Primary Docu 20—I'm ZOa�aerReeRmeae1na-rre[ar1 �1" Yield,, Fwrdawne� .. - xa million eerekee Rerey� BULLETIN No. 104-7 Used f o r t h i un,e d e a—�x mace hok ons I n i t i a l or 9 for ni'etl eeplor—taang wms tMrl situs for mwuaeptn menironng wdis O� a�e.eeferwm�mon"e�usm��uno�� ¢ �-. Presentatiar 1he�AOwndwe9orPoducouAes technical P PLANNED UTILIZATION Research Research a OF WATER RESOURCES Study IN THE Grr.undwater - P3 Pumping Area April 10, 2016 SAN JUAN CREEK BASIN AREA 9 m0e 1 e � r Prepared for the 5espe aFormaiwn/ Citizens of P4 �°m-�9 F' y rdered from � ^-�� Copies al th'u Wlesin ct$1.50 each mo be o Sespe Aquifer ArF Ir If le E. Orange County State of Cpli EC DOCUMEN75 SEC Over 12,000 Acres and 1500 thick. - P.O.Box 20141 c californ[e 95820 Thins at northwest and southeast. � Snrram""tO' Use 10,000 Acres,1000-Feet Available as two ble to 57ATE OF CALIFORNIA. r_ u Make cherks paYa a Con},olef tc.. 2000 Acre-Feet/Foot of Aquifer G' e' California residents add 5 P r n pD `�� w >2 Million Acre-Feet 100 �J K-1 DF I l" Presently Not ,N. � Available on 4 Sespe rr. Aquifer 5amlago Fcrinatfo I f f I �` - OFcc[ 2000 4000 6000 Saco 10,I 000 12,000 14,000 16,000 18.000 20,000 feet C JUNE 1972 . w the InternetWilli , �9 WILLIAM- - Sespe Aquifer-. 5antiaga Forrnatian j Silverado Formation-ls.�-M� Director E, LIVERMORE JR. RONALD REAGAN "o yet z0o0 4000 s oo e0�ao 10,0 z,000�iaaao 1s�o°o 1e,oDw z000Bfeet $ Depdriment of yJoter Resources li and C-C'Geolugir Prufles(Miller&Morton,1987) �el°7 for RAgenry Governor Prepared by Kelly E.Rowe, CFM,PG, CEG, CH Stole°f enlifornia Wem•Sauthwes to Northeast 0.lignment 4"Oorcea Scale 1:1 re d[aCharimntai Water Resources/Hydrogeology Consultant Kelly E. Rowe, Hydrogeology Consultant 09 R 1 pq cill/ I F Q C pt ATF � � � JURASSIC moo Op 90* VOW 0 Present Peru Coastal Profile Example Likely Pre-20 MYA South OC Coastal Profile 20,000 Feet 10,000 Feet 15,000 feet/25 miles Or 600 feet/mile slope For very high-energy depositional environment 100 0 Miles 50 Miles Miles Present South OC Coastal Profile OC High Point Mount San Jacinto Santiago Peak 10,839 feet 10,000 Feet 5687 feet Palm Springs & mescal Valley &Newport Rancho Santa Perris Hemet San Andreas Coast Margarit Elsinore Fault Fault Sespe Formation Alluvial Fan & Coastal Non-Marine Sedimentary Layers Estimated Original Areal Mainly Braided Stream Deposits & Delta Deposits Extent +100 miles long, Sands, Silts, Gravels, Cobbles & Boulders (Coarse-Grained) from mountains to ocean, Climate was Dry, Evident by Lack of Organic Matter, & +150 miles wide, from several major rivers "Red Layers" Due to Sun and Air Exposure & Caliche Layers. eroding large mountains from ranges within 200 "Exotic" Purple Rhyolite Volcanic Cobbles & Boulders found miles from coast. Sespe up originated from newly rising Sonora Mexico & Arizona area to 2400-ft thick in OC and Mountains through steep, large rivers flowing across and up to 7500-ft thick in Santa eroding California's/Mexico's Large Mountains formed pre- Barbara & Ventura Eocene time. Counties. Sespe is characterized as loosely compacted with some Mid-Eocene & cemented layers Oligocene -. : -: : : •. -. 40- to 20 MYA :Sesp�- •: - --- - Sealevel Low & _: _: _: _: : - : - - - - - - - - - - • -_ -_ - - - Rising.. but Excessive > -. - - - -- --_�kp -sa Sediment Deposits _ _. _ o - _-- Keep Ahead of - - - - Sealevel Rise Vaqueros Formation Coastal Marine & Non-Marine Sedimentary Layers Sometimes Mixed on West with Upper Sespe Delta Deposits & Some Braided Stream Deposits Sands, Clays, Silts, Gravels & Shells Oligocene & Climate was Moderate/Temperate E. Miocene _ 30- to 15 -. -. -. -. -. - - - - - - - - _. . -___ MYA - - - - - - - - - - - - - - - - - - - - - :-:-:__=_= _-_=_ - - - - - - -: -: - -: -. -: -: -. -: -: -. -: -: -. -: -: - - j_'- - - Sealevel Q) .. _: �. �: .•_• .• .• _• .• _� _ _� __ _� _� -� - __= -__= -_�_- - - _ - ___--- Low & Rising Miocene - SoCal Geology Very Dynamic End of Denser Farralon & Pacific Oceanic Crustal Plates Subduction - Processes that formed California's Coastal Mountains over previous 150 MY. Start of Pacific Plate pulling, pushing and twisting lighter California coastline rocks onto Pacific Plate, which also changed direction of movement to northwest. Lots of volcanism, ash dissolved in water, flourishing growth of diatoms (microorganisms)=phenomenal deposits of oil and gas, buried by sediments from local erosion and ancestral Colorado River and Gila Rivers, deeper seas. Christianitos Fault Topanga Formation Last active 4 MYA Mission Viejo Fault Miocene San Onofre Breccia _ .-.-.- 15- to 6- - - - -' -' - - ..... - --- =-=- MYA > -. -. -. -. -. -. -. _ _ -. -. -. -. -. . - _ = � Sealevel -: -: -: -. -: -.- . - - - - - - - High As Land - - _ - - - - - : -__ ___ =:-:=... . Dropping onto _- - _ Pacific Plate SoCal Shallow Continental Bedrock Being Pulled Apart, Moving onto Pacific Plate, Crustal Thinning, High Sealevel, Magma Rising & San Andreas Transform Fault Shifting Eastward beneath Coastal Mountains Pliocene - Start of San Andreas Fault Zone Movement (from 5.5 MYA to Present We Moved 186 miles - 2.3-inches/year) Coastal Southern California fully transitioned to transform fault tectonics Christianitos Fault Mission Viejo Fault Last active 4 MYA Pliocene 6- to 2.5- MYA Sespe Sealevel a� High As Land . . . . Dropped onto Pacific Plate cn Sespe Christianitos Fault & Mission Viejo Fault : formed as "Normal" or "Gravity" faults as : : :... . . . . . . . . . area was pulled apart 12- to 4- MYA Santa Ana Mountains to coastline rising at rate of about 1000-feet/ million years over last few million years (Old shoreline age dates.) Now - Southwest-Northeast Basic Regional Geological Profile Along Upper Trabuco Creek/ OC High Point Plano Trabuco Alignment to Laguna Niguel Santiago Peak Whole Area Rising 1000-ft/Million Years Last few Million Years, based 5687 feet on geochronology dates of former beach terrace deposits. NA North east South Rancho west 3000 FtSanta Mission Margarita 2000 Ft Alicia Viejo Trab co Santa Ana Mountains Laguna Viejo Marguerite Olympiad Canyo Rd 1000 Ft-Viguel Pkwy Rd 241 Northernmost �-5 Peninsular Range Sespe. - 0 _ Geomorphic Province Mainly Younger Marine Sediments ca z$° Highest Uplifted Fault- West Block ��e,�5a Bounded Block °� Sespe was eroded away Sespe Middle over last 4 MY IL "Sespe" 0 Miles 5 10 . Block 15 20 This portion of Sespe, west of Christianitos Mi son Viejo Christianitos Fault is too deep Fault Fault East and isolated to be used as a Last Active Over Block groundwater resource facility. 4 MYA LaHabra Basin Brca San Juan Basin - NOT Adjudicated (Valley-Fill Alluvial Groundwater) j Fullerton Yorba Lin water District Operated through individual State Water Resources Control Board •' Park Permits - Groundwater flowing in 1 end rano Water Anaheim kt hvineRaw P, known and defined channels Golden - waterl]lt r,I State Orange Water Co. j Santa Ana EOCWDReta GXL$ 'l Grove Zone Mountains G5 Westminster ":_C_ O/� sr.rl 11/ Beam Tu•.t,n $.t rlt.l Ana �'N Huntington Fountain {•��� Beach Valley Mesa Irvine Ranch Orange County Water District water District T , Coastal Basin 350 Square Miles San Joaquin San Juan Creek Watershed q 160 Square Miles Drainage (Shallow Aquifers Outlined) NexportBea"' Hills E' r° 38,000,000 AF Storage "1a` °`St"` Groundwater 16,700 Acres 200,000 AF Safe Yield sErne Bay (Valley-Fill Alluvial Aquifer eryi a Dlstrlct MoultoWater Hig g0 000 AF Storage 350,000 AF Operational Yield Water Santa ,J W.r g NOT Adjudicated Laguna Beach County War 10'0 0 AF Safe Yi Water District Aliso Creek Watershed San (No Groundwater) Juan Capistrano Orange County 51, '`oast "at. strlct San Groundwater Basins Clemente Orange County Coastal 4r-vine Sub-Basin 'f`ya °�� �• :I:�� Trabuco /� :. �: -- lirvine"Ranchf C nYon WD �O - f, Xaa f" Robinson Ranch V,R= /(� Y/�• IRVVD Los Aliso VR- .!'{� - - r 1[ 0 San Juan EI Toro 11"'; ��• r S EI Tdro D-, ' ,Creek Basin f -' � i i• a Oso Creek VVR rAlisoCreeknt3AAV✓iSantaasin u lto n � t a rga Y�II I stit.taP , �t N i s e l Chiquita WRP WD ... .c 9 Laguna Joint RegionalA�WT r 1 } 'Lapuna(1.11 / Beach Coastal Treatment Plant CW D '9a J�mn ,, r Rwers,de [ ...... Jr t S, w ateo C + trano �'•San.Juan. sin E]esa�[��c,-- . ,n r.9ry c c•, a� SOUL �CapstranvBeacL7o�nit CBasin Deshecha r&A l.atha San Clea,gasins { (Camp Pendleton) , Ie'SahCfa'h�e? 1� �� R t A, Basin/Watershed & Water 4 - Districts Boundaries NArlONAC OPv6 a I a — -- 2420.10 0 0 0.10 X2450.10 MI • ti M KI V OCWD 2016 Locations M * of 29 Coto De Caza +2451° 4 IzsOlo, Domestic Wells-1990s (not in DWR recordsl 1225 Iy 2075.10` DWR 1972 a °I Reported I Groundwater Seepage Areas HI •GIS s? • R AmL DWR 1972 Locations of Wells e200. fl , •• 1155. 015°.I° and Springs 2055 1 02 - 11100 5.1 I 5.100. •• �,R, ' ; , . F. (in valley bottoms generally 0.5- i 2110.10 1100. .SgrV 411 4),M06.6o o, � �� .' mile wide & 100-feet deep) 2050. r 3 H CZ �i�50.OQ �—PI~ . K1, Overlay-SJB Authority 2016 Q ' .4 �~1 Locations of 230 Wells 20JP 00•! C2,3 ' :AVD LI PI Qr3010 ; from CA DWR Records • 20.1 t� .3 1010. 0 Me,3, 4'7 P Ott!,, 140510 1 # / BOUNDARY INVESTIGATION AREA 2 3 rrss m� r.SJ S 1 63 \ •EL TORO ??M1 P"p 4 / T. r' / r'j r 16,7g6Acres V Iey4ill Alluvial / rr, /A uifersa \ TI Bss ,000 AF-Storage r rm e3 Capacity w a 1 .006-AF-Annual Opo '+ Yi)d\ �p� \ / DANA a T rpy r. T. qr 4 O rx r�i / Po' „a a / A 97Popula .baa-20,0 SJC 4 n issio hl n � it mi c a d rrR9 j S c /2016 — Po la�on +500,000 ( 1972x� '� �" i \ Suburb Pe ple ew e L E G E N D `d<e.\q grai.c or e[ooiry s dn- n C eek Basi�W., gmxxm. �m ..r g<� __:: ."o rx rz. ran o x EaE /4`4 T. -1.- m.o r xaq<exr sr �urE,rfl.wEyr • — -- : Bulle 0 — T.211, m-x \ V furs rites v..c�xe.<w, nx ew.mrra.morver m . o[vFRTMENTOF gsix qsourva,5. / \ c�aroiiw w RE-- SAN - SAN JUAN CREEK BASIN A REA AREAL GEOLOGYWater on 1971 e_ e - PLATE 3 OIL TOM upper ❑ # � ups so # Resew JI(e l} 7i k Ta / r To �J F. l }_ Arroyo. rabuc �� +r' Tip 01 TFi F. 7r Ty To F} � *. r °' T* W. ray canyon Tar T; ,,. � u r. T. T. r. 0 1 2 —- Scale (Miles) Sespe f=ormation/ Sespe Aquifer Area Over 12,000 acres with 2000 acres • ,� �'� •per �' � � overlap with Vaqueros Formation on • L NW & Santiago Formation on SE Assume 10,000 acres Over 1000 feet thick sin o 'ag i� rw an - I; 20-percent specific yield r _ —Forma '� �� 2000 acre-feet of groundwater ., /foot of aquifer ' San n } a2 million acre-feet storage n .luau Creek Modified Map After DWR (1972) ogon Ita Areal Geology — Plate 3 Source_2015-Topa Maps for Lake Forest, Santlago Peak,CanSda Goharandora&San Juan Capistrano from(USGS.2616) Approximate Locations of S-fi'&C-C Geologic Profiles from Miller&Morton[1 964] Approximate Locations of E•E',F-F&GG" Geologic Profiles from Morton{1970] L(�� Geological S t u d i e s Major stireambed alignments highlighted. c Done by California 0 -2 Geological Survey - 0 — ,. �a After DWR 1972 Water lWMkfK t �( 1 0 R .� Resources Report ��•' mow►*C YHY�4.� � _ - . u.u.i;Nn 5 Y � 7 tia+tfYar•��1i L• C f " or Alignments of Ma - � -- z g J Streambeds and 6 mile 1 Geological Profiles - ao � r ]O.. .ti,rtnt,�.i�:c C -� .�. ,x%=4J.,,¢ 'M%N1 Sespe Aquifer Area �- Cr �. espe Formation/ (CGS, 1970 & 1986) Sespe Aquifer Area ; And Geological Pr files r G, Kelly E. Rowe, Hydrogeology Consultant North Sespe Aquifer Area Geological Profiles Mapped +200 feet thick "Sespe" gravel layer Santiago Peak Quad is evident across from OC Fire Station along Arroyo Trabuco Area Trabuco Canyon Road next to O'Neill Park Geologic Profiles developed area. Likely has great groundwater Sespe Formation/Aquifer Area recharge potential beneath Trabuco Creek. West-Southwest to Northeast Alignments B SI Profile Parallel to and North of Arroyo Trabuco ROSE CANYON Klb-sb 2AO,2000 .Om 2000 Vaqueros Live Oak Canyon Q„ °ew "' feet LIVE OAK CANYON 5O0m feet Formation `. 43 p0pom ° 100°i t T. _ _ - T SVTs T I T I I' 1 •Klb Jb 1-1,000 feet o 1 : 200 11-:.✓I T - 500' Dom Sespe`Fo.rmation/aquifer`�{sar�cls t gravelsT sant ago format,on- Ts � I Sea level See level - 0 feet 2000 4000 6000 8000 10,000 12,000 14,000 16,000 18,000 20,000 feet , DOVE C Vaqueros Canada Gobernadora CANYON 2000 Ti eras Canyon CANADA Formation Plano Trabuco y GOBE RNAOORA IJosw °1 y °v TERAS K-1 1,500 500m feet Tiabuca Lveek Otrz Olrl CANYON Q­ psw Osw Osw m w -- Olr2 A/� RLANO TRABUCO 400 Tl Arroyo Trabuco Ip OO 500 200 — °, - .. °• ° ° - - T`' T= Sespe Forrraati¢n/Ag.iilfer(sands Sc°g.ravels _ f ;_�arti�gb fb"rnration 1 5rlverado Formation �'%,: Sea leve Seu level 0 feet 2000 4000 6000 8000 10,000 12,000 14,000 16,000 18,000 20,000 feet B-B' and C-C' Geologic Profiles(Miller& Morton, 1984) Scale 1:1 vertical:horizontal Kelly E. Rowe, Hydrogeology Consultant Profiles show the apparent dip of bedding and geologic contacts and relative Canada Gobernadora Quad locations, alignments and movement of noted faults. Geologic Profiles — The profiles suggests the shaded/blue-highlighted Sespe Formation is at least 1000- Across Plano Trabuco, Canada Chiquita & feet deep, thinning toward the south. Canada Gobernadora The Sespe Formation is frequently exposed at the surface or has a thin cover of slope Sespe Formation/Aquifer Area wash or stream terrace deposits, except where the younger or contemporaneous Vaqueros Formation overlies it more towards the northwest. West-East Alignments E-E', F-F' and G-G' The older Santiago Formation underlies the Sespe Formation to the south and (Morton, 1970) southeast. Profiles show the Tsau (upper unit) and Tsal (lower unit). Arroyo -- Canada Chiquita Trabuco Tijeras q Canada Gobernadora - _ 1000 feeLO Canyon �1 'w' n _feet l Sespe Formation/Aquifer (sands &gravels Silverado Formation - ° '— Santiago Formation Vaqueros (Tsau(upper)Tsal(lower) Formation —�- —F•Ep E�- --- I I I 1 1 14,1000 16,000 18,000 0 feet 2000 4000 6000 8000 10,000 12,000 Arroyo 0 Canada Chiquita Canada Gobernadora ^7Aeeo 1000 Trabuco ->pp feet / - I' ��^ r -�' -saa Sespe Formation/Aquifer(sands &gravels) Santiago Formatio r i� _ (Tsau(upper)Tsai(Igwer) 1 _ - -�- - ' F I 8000 10,1000 12,000 14,1000 16,000 18,000 F 0 feet 2000 4000 6000 1000 1000_ s Canada Gobernadora 46 CanadaCfiiquita _ a.e Leet 000' fes- - -•- _ .�.//�� �� _ -- --- - _ _ _ - soe• sed s._— _ - ,rte ry - .ryr __,a#,- f Sespe Formation/Aquifer —Santiago Formation 1' e _ • 1 (Tsau(upper)Tsal(lower) 1 8000 10,000 12,000 '14,000 16,000 18,00 G 0feet 2000 4000 6000 E-E', F-F' and G-G' Geologic Profiles (Morton, 1970) Scale 1:1 vertical:horizontal Kelly E. Rowe, Hydrogeology Consultant North-South Hydrogeological Profile of Cleveland National Forest Length of Sespe Aquifer Block - Between Runoff & Trabuco Creek Christianitos Fault and Mission Viejo Fault Groundwater Recharge to the Sespe over the last million years - probably North Rancho Santa made Sespe Aquifer Water Upper Oso Santa Margarita Reservoir Margarita Quality Overall Good South EI Toro Rd. Antonio Las Flores & Pkwy Trabuco Hwy Coto De Caza 1 °5 Creek Tijeras oso SanJuan Creek Cree Sa Jua Ja Orte a N AA Hw �64:22 e OPPAM �k \_^/V ° o 0 (Sealevell • -100 0 (Miles) 2 4 6 8 10 Southwest-Northeast Hydrogeological Profiles of Sespe Aquifer Fault Block Along Trabuco Creek at O'Neill Regional Park Trabuco Along Oso Parkway North Canyon Road Canada Canada Left Crossing Chiquita Gobernadora 1000 Turn of A HIM/ Trabuco Antonio 241 Coto De Creek Pkwy Caza Tra b co Cre k 500 - 100 feet/mile 500 ,y slope of floodplain �, For high-energy �,QeU. m depositional O 0 40 ,o 0 environment ��° V • �¢o� •°' 0 (Sealevel) .!0 (Sealevel) •0 H of of �� • -500 u -500 0 (Miles) 2 0 (Miles) 2 Table 1 - DWR Sespe Formation Samples - Permeability and Porosity Values Location Permeability Mei nser Units Porosity (Township/Range- (Darcy (gals/day/sq-ft) (Percent Void Section) cm3/s/cmZ) Space) T7W/R6S-27 SW '/4 1 .53 30 20.4 T7W/R6S-34 NE 1/ 2.10 40 25.0 Sespe Soil Lab Tests - logro K(cm sccl —2 -1 0 1 z 8 3 4 5 b 7 8 9 10 11 Show Good Permeability Pervious I I sCmrperVious 1mpCr,,,ou� Permea bi I ity Aquifer GoW ' Poor None and Porosity Clcan Clean s: «I Very fine sand, silt. Values Soils gravel sand a gra-k'1 lots.:, loam, soloneta DWR (1972) Feat Stratified clay Unweathered clay Sespe Results Good Rock% 1[ it rocks Sandseone stone. Breccia, Bromic dolomite —10810 kicni'l 3 4 3 6 7 1 S 9 10 11 12 13 14 IS Id I+*,., Afrir,ll It 7 b 4 3 2 1 o — 1 —2 —3 i (md-milidarcys) ' I roin hc.ir. /jdai%k. . and trniay, 1%8- Figure 12 - Typical Values of Permeability and Hydraulic Conductivity (Sespe Plotted) Well sorted material Average material 60% 50 % , �� � , Porosity DWR (1972) The 20.4- & 25- Sespe Results percent porosity 40 % - values from lab - Indicates some 30% ��°�� 1 � compaction from G � past burial by 20% - 0 1 overlying 10% � �� 1 sediments. Specific yield o % .3 .� _1 0~ ~ 1" � values should be l f� i I I l close to same. Gla SO sand ravel cobbles 1 Median grain size ( mm). Figure 13 - Ranges of Porosity, Specific Yield & Specific Retention Values vs. Grain Sizes (Sespe Plotted) Kelly E. Rowe, Hydrogeology Consultant i BARO IQ I 5141 FINE MEDIUM p00.� i �1E 0,100 jSanD.- A41 y�.�°� Sieved Sediment-Size °oz o111 O�� 2215si °vel Charts of Ses a Soil x.970 p1 40` 13831 4% 6SAI 44911 Samples 184 111 5� 309 IBI.W 1900° I° DF4v qD.GRAIN SIZE D157R18LiTICN,UPPER SES' SANDsiDNE.WT[AOPs�WFtf SwIH-ss- ( DWR 1972) 7W-SEC-27, DIAMETER IN MM 10 aI I _1 I p♦:9BLf SAND SILT CpARSE C0 FINE µ>_DVVM S �R Shows less than 5- 100 vEv9 µ, 1S11K1 1k�1 ��- 1 °� °�uw percent silt & clay, w s a rn > 90_ 19 ��19 119 m V4 4.Y2 5.19 TO_ 2D V9 9B 2401 • • /p,Y z h" 6 Median size-Coarse Sand V 60 IOD 11 T° 4.16 a ay mm t01 2K ;r y�_ Silt San rel ° 1� Sao_ m � a j I6BT} u 20_ D20 ul5 � 10, E �EUe.65.1w :5 OPL F199re 41• GRAIN S12E DISTRIBUTION'SESPE — Kelly E. Rowe, Hydrogeology Consultant ` Source,2M-Tapo Maps for Lake Forest,Santiago Peak,Can9da Goherando•a&San Juan Capistrano from(USGS,2016) 1 White dots show approximate locations q� of 9 proposed exploratory boreholes and �tQ' 0 .. ' sites for multi-depth monitoring wells 0 and water production wells throughout 0; the 5A Groundwater Production Area. � Sespe A Close-up aerial photos of sites in '� '� Appendix F show these sites identified on this map and in text of Study. r @1P1 - Area — . %"I' ' ILI x CIO Production 'IN- Y5 i Area Subareas (N1-mile by N2-miles) G rLu ndwate r ~ Pumping Area ti P3 r and Recharge I 0 29 Coto de Caza Area 0 mile 1 Area residential F- rroption wells P4 Sespe Formations Sespe Aquifer Area13 to Groundwater Production Areas M tr Kelly E. Rowe; Hydrogeology Consultant Source-201 5-Togo Mag for nProposed Arroyo Tra buco Debris Santiago Peak from(USG S.20 16) -Basin/Flood Retention Basin Area- L t fl t d ll Also use for controewater ow o ti � percolation basins for Sespe Aquifer. Conserve native flood flours, p urified 0 mile wastewater and imported (MET) water supplies. Recharge r , o r Arealssues 10 .00 150 0and ti 0 �_k Example Recharge ; 60-Acre Trabu o - - treambeaScena rios Percolation Basin _ Area - L e pe Aquifer "-"'* -�� Groundwater ,N 1h N.% i �i C.,%INITA r Pumping Area Kell E. Rowe, Hydrogeology Consultant, ;� •' �� ��� n■�� ����� •mil ,•r• J GE jL bAl 41 IR x Jr 4p Mee fj �j� LIP 1 — Recharge Area 1Recharge Area 11 1rea 1 Prime Recharge 1 rea 1 Acres — Along Trabuco Acres — Along Trabuco 50 AcresAlong Trabuco Creek Creek Area of O'Neill Park Creek Area of O'Neill Park Next to Developed Area of below arita — from HwyI toSantaO'Neill ' — from • • MargaritaPkwy • Road • Hwy 241 _ •, lr ' 'L i ra � 1 z Trafiear6 ' Sar+ — Live t ak-Care l.4 .• L -tiiF1'.i+ 7'4 1 r – ti :1. •y.. F+I ;fie-T� F ii p f•�`�-.ti. �7��ti� `r ,- � ��� �_� }; ,rte � Wi �` - - - - •1�.�9r,� IL L dw o 5antaiWarigarita 4'venida�DRanAe �% F es u , •� � E'kap. � ,- � __ '"� � �• 5eari;:' •'-r .�-•y. ., * i N,4 ; :;3 . # Sarit.� MargariF B �05 LVp,. _ r \.. �f D Q 61} O,CAh(yo , �� - � _• ra u co Creek. . eambeid r Duk Canyc�rt sF� o J�rriu P A4P o r. -� CALLGAXAPOExample Percolation Basins J` E � �, 4 1-Ecosystem Enhancement, r 2-Local Water Resources s Conservation and 3-Flood Damage Reduction (Simple Regrading Berms within 100 L Year Floodplain of O'Neill Park 0001800 1 �T p c 241 Avg KA Essentially Negates Main Use of New "San Juan Project" Planned Inflatable Dams as Floodwater Captured Here rn , RANC H[) SANTA 1VIARG�►.RI7 _ ', SPERA Recharge Scenario 1 Arroyo Trabuco — Cross- Profile R1 Rancho Santa Margarita R1' NW SE Arroyo Rancho Santa Margarita Lake Elevations& Plano Trabuco I Trabuco (As Potential Percolation Basin) Distances in 2000 Feet 1000 500 0 Soo 1000 1500 004L 2500 3000 1100 Strez tubed/ Flo dwaye000Recharge ater Percolation 1o5c� FloodplainThrough Sespe Formation 1000 &0000 000' Unsaturated Soils 95 Groundwater 90 Mixing Zone Below Percolation Basins 85 Valley-Fill41tvial 80Aq ifer Sespe Formatio A uiftbr Saturated Sands Gravels To Sespe/Santiago Contact About 600 feet msl —350 Saturated Thickness Kelly E. Rowe, Hydrogeology Consultant - t J �- Sespe Aquifer - Water Quality ,�� i • Only limited shallow well data s available from T�J 1972 DWR Report - from "'Upper Trabuco F :� Y Division", includes Trabuco, Chi uita and � � f- q L Gobernadora drainage areas re-1970. g , p - _14"I , i - Generally, than 500 m TDS is good-less g/ calcium-bicarbonate sulfate type mineral Yp �� . quality, More water quality data needed 4% . from monitoring wells at different depths. �� .', IA: Jr . Groundwater Recharge to the Sespe overp � ;x .:the last million years - probably made ' , � t Sespe -Aquifer_ water quality overall good , r ' "teIIy . Rowe, Hydrogeolo 'Consultant Table 31 . UPPER TRABUCO DIVISION GROUND WATER MINERAL QUALITY In mg/1 DWR19 0 1965 L970 ( 1972) ,uaiity factor Lowest Highest Lowest Highest Lowest Highest Water Calcium 61 155 61 117 78 90 19 31 Quality Magnesium 16 33 7 35 Summary so and 27 49 20 43 20 33 Table for "ta s1 Sespe B'"rbanate 203 327 152 259 �a� ��$ Aquifer Sulfate 61 258 63 213 X32 X47 Area Chloride 53 i3 38 22 88 9 Nitrate12 o 0 .9 12 0.0 Flu °x�de 0. 0.5 Q.2 o.4 1 0 .1 0 .2 430 � 603 370 378o4336 346 Qt har 403 277 dne s s 222 522 2.1 �' � R���•�,� ������ � � illi � �y .�i��,�� ,_ - �.y�.�4 t �~• t- Next Steps for Sespe Aquifer Development 1 - Com lete initial "Proof Exploratory Boring(s)" Determine Present Water Quality Across Sespe Aquifer . ti r Determine Water Quality at Different Depths t�-A- . Determine Groundwater Production Potentialm- - �►�- ; 2 - Form & Operate "Sespe Aquifer Commission" Determine Lead Governmental Organization(s) ` " •_* i , Organize Collaborative Partnerships- .� Common Goal Sespe Aquifer Development Obtain Funds/Commitments & Determine Directives ; Plan, Manage & Conduct Action Items Analyze Data, Reach Conclusions & Recommendations 3 - Change Status of San Juan Basin from a DWR "Low Priority Basin"�kl'., to "Medium Priority Basin"; to better qualify for State and local : - _ T� funding to advance Sespe Aquifer use as the "centerpiece" of water resources management in South Orange County. r - 41 �r` t �eii E. vve, N dr C ii�ui� _X ti Ur i 1 ,' # _ ' ' Asl� - - Y , gY - - ,ti- � .� 1000 ��• - - __ �" "�� �•• �_--- :::�r����- Ses e Aquifer Development p q p 800-ff-r- ••••••••••••••• --__ -�-- :•: • ' ' :,r:�r .: , _ ='• =--_-_ � }�~'� Short-Term Goal — Proof o `- Exploratory Borehole(s) �■�r -_lam.-" 1�0 600-ft :: .:•.:•.:•.:_-:�_-' ,�. $30) Cos '�,OD Proposed Max. Total Depth — 1500 ft Direct Mud Rotary Borehole — 12-in 4004' 00 Geophysical Borehole Logging (Spontaneous Potential, Normal, Lateral, Gamma, Sonic, Temperature) 200-ft. �-- -- == Drill-Stem/Aquifer Isolation Tests Example on Left Shows Screened Pipe in 0-ft Hole & tremie backfilled with gravel pack and sealed above with clay. 200-ft' ::: :::' =__ -_ - - = Pumped for representative water quality tests and moved up hole. Field WQ Tests - EC, pH, Temp. 02, 1-12S 400-ft = =� == _ Lab WQ Tests — Title 22, H2S, Metals Kelly E. Rowe, Hydrogeology Consultant 1000 `� ;: . :• Sespe Aquifer Development 800-fir:'::.::......:. .1r•r• ..•:' Long-Term Goal - Production Well Field with Suitable Network of 600- ': Monitoring WeIIs And Groundwater Recharge 400- : Facilities to Capture Stormwater Runoff, Use Purified Wastewater -_ - and Imported MET Water Supplies Zoo-f� =___ -- ". 50,000 Acre-Feet/Year or More Example on Left — Basic Design o-ft = Expected Production Well Cost: $2,000/Foot or $2M/1000-Ft Zoo- -- ______ Constructed & Tested Well Well Pump Equipment$2M Well 400-f :`: :'. +' :` Total 4M Well — High Ca acit Production Kelly E. Rowe, Hydrogeology Consultant 4 Sespe Aquifer De elo mep in South OranAS County, C� t ` - 'k An one Interested in the Explorapow&v Develokpment of a New CheapSuppl ,v ouality Groundwatea. �� � i _ in South Orange County? � 1 Contact Kelly RoweMEN- - +..r - res �C krowe77@grnail . coM .,�%^ 4L _ • {• � til - � 1 r 714-747-7573 ITEM NO. 13.1 AGENDA REPORT Meeting Date: August 8, 2017 Subject:Meetings from August 9 - October 31, 2017 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Board of Directors Activity Calendar Event Date Time Attendance By August LAFCO Wed, Aug 9 8:00 AM Nederhood (As Needed) Yorba Linda Planning Commission Wed, Aug 9 6:30 PM Hawkins (As Needed) YL City Council Tue, Aug 15 6:30 PM Miller MWDOC Wed, Aug 16 8:30 AM Nederhood UWI Annual Conference Wed, Aug 16 1:00 PM Jones/Nederhood OCWD Wed, Aug 16 5:30 PM Jones UWI Annual Conference Thu, Aug 17 8:00 AM Jones/Nederhood UWI Annual Conference Fri, Aug 18 8:00 AM Jones/Nederhood Board of Directors Regular Meeting Tue, Aug 22 6:30 PM OCSD Wed, Aug 23 6:00 PM Hawkins/Jones Yorba Linda Planning Commission Wed, Aug 23 6:30 PM Hawkins (As Needed) ACWA Region 8 Water Reliability Program Thu, Aug 24 10:00 AM Nederhood Board of Directors Workshop Meeting Thu, Aug 24 4:30 PM MWDOC Water Policy Forum Wed, Aug 30 5:00 PM September WACO Fri, Sep 1 7:30 AM Jones (All Directors PA) District Offices Closed Mon, Sep 4 7:00 AM ISDOC Executive Committee Tue, Sep 5 7:30 AM Nederhood Yorba Linda City Council Tue, Sep 5 6:30 PM Nederhood MWDOC Wed, Sep 6 8:30 AM Nederhood OCSD Operations Committee Wed, Sep 6 5:00 PM Hawkins OCWD Wed, Sep 6 5:30 PM Jones Board of Directors Regular Meeting Tue, Sep 12 6:30 PM LAFCO Wed, Sep 13 8:00 AM Nederhood (As Needed) Yorba Linda Planning Commission Wed, Sep 13 6:30 PM Hawkins (As Needed) YL Mayor's Prayer Breakfast Thu, Sep 14 7:00 AM Nederhood Joint Committee Meeting with City of Yorba Linda Mon, Sep 18 4:00 PM Miller/Hawkins YL City Council Tue, Sep 19 6:30 PM Hall MWDOC Wed, Sep 20 8:30 AM Nederhood OCWD Wed, Sep 20 5:30 PM Jones CSDA Annual Conference Mon, Sep 25 8:00 AM Hall Board of Directors Regular Meeting Tue, Sep 26 6:30 PM OCSD Wed, Sep 27 6:00 PM Hawkins/Jones Yorba Linda Planning Commission Wed, Sep 27 6:30 PM Hawkins (As Needed) Interagency Committee Meeting with MWDOC and OCWD Thu, Sep 28 4:00 PM Miller/Nederhood PA = Preauthorized Board of Directors Activity Calendar Event Date Time Attendance By October ISDOC Executive Committee Tue, Oct 3 7:30 AM Nederhood Yorba Linda City Council Tue, Oct 3 6:30 PM Hawkins MWDOC Wed, Oct 4 8:30 AM Nederhood OCSD Operations Committee Wed, Oct 4 5:00 PM Hawkins OCWD Wed, Oct 4 5:30 PM Jones WACO Fri, Oct 6 7:30 AM Jones (All Directors PA) Board of Directors Regular Meeting Tue, Oct 10 6:30 PM LAFCO Wed, Oct 11 8:00 AM Nederhood (As Needed) Yorba Linda Planning Commission Wed, Oct 11 6:30 PM Hawkins (As Needed) YL City Council Tue, Oct 17 6:30 PM Jones MWDOC Wed, Oct 18 8:30 AM Nederhood OCWD Wed, Oct 18 5:30 PM Jones CA-NV AWWA Annual Conference Mon, Oct 23 8:00 AM CA-NV AWWA Annual Conference Tue, Oct 24 8:00 AM Board of Directors Regular Meeting Tue, Oct 24 6:30 PM CA-NV AWWA Annual Conference Wed, Oct 25 8:00 AM MWDOC/OCWD Joint Planning Committee Wed, Oct 25 8:30 AM Jones/Nederhood OCSD Wed, Oct 25 6:00 PM Hawkins/Jones Yorba Linda Planning Commission Wed, Oct 25 6:30 PM Hawkins (As Needed) CA-NV AWWA Annual Conference Thu, Oct 26 8:00 AM ISDOC Thu, Oct 26 11:30 AM Hawkins (All Directors PA) PA = Preauthorized ITEM NO. 14.1 AGENDA REPORT Meeting Date: August 8, 2017 Subject:YL Mayor's Prayer Breakfast - September 14, 2017 STAFF RECOMMENDATION: That the Board of Directors approve Director attendance at this event if desired. ATTACHMENTS: Name:Description:Type: YL_Mayor_Breakfast.jpg Backup Material Backup Material BA Y AYO LINDA M R'S I� � AKF' A = T • Yorba Linda Community Center Thursday, September 14, 2017 7:00 a.m. - 8:45 a.m. Admission: $25 (Breakfast included!) Join us as we celebrate a 30+ year legacy of honoring the service of city officials and praying for our city! t 3 , 714-993-9537 L www.YLPrayerBreakfast.com