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HomeMy WebLinkAbout2017-11-14 - Board of Directors Meeting Agenda Packet (B) AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, November 14, 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 September 20, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Special and Regular Meetings Held September 26, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.3. Minutes of the Board of Directors Special and Regular Meetings Held October 10, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.4. Minutes of the Board of Directors Workshop Meeting Held October 19, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.5. Minutes of the Board of Directors Special Meeting Held October 24, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.6. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $842,258.11. 7.7. Claim for Damages Filed By Mercury Insurance Group Recommendation: That the Board of Directors reject the claim filed by Mercury Insurance Group and refer it to ACWA-JPIA for further handling. 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. Amending the Personnel Rules Recommendation: That the Board of Directors adopt Resolution No. 17-34 amending the Personnel Rules for the Yorba Linda Water District. 8.2. Amending Employee Compensation Letters to Rescind the At-Will Employment Provision and Modify the Pay Plans for Unrepresented Employees Recommendation: That the Board of Directors: (1) adopt Resolution No. 17-35 to amend Exhibit A and further amend Exhibit E of the Employee Compensation Letter (Resolution No. 15-08) in order to rescind the At-Will employment provision and modify the pay plan for Management employees for the remainder of Fiscal Years 2015-2018. (2) adopt Resolution No. 17-36 to amend both Exhibits A and E of the Employee Compensation Letter (Resolution No. 15-07) in order to rescind the At-Will employment provision and modify the pay plan for Professional and Confidential employees for the remainder of Fiscal Year 2015-2018. 8.3. Publication of General Counsel's Opinion Letter Regarding MWDOC Memorandum Recommendation: That the Board of Directors direct staff to publish General Counsel’s opinion letter and attached memorandum prepared by MWDOC’s legal counsel regarding the Assistant General Manager’s employment with YLWD and concurrent service on MWDOC and Met Boards of Directors. 8.4. Election for Association of California Water Agencies (ACWA) President, Vice President and Bylaw Amendments Recommendation: That the Board of Directors review the candidates and proposed bylaw amendments and authorize President Miller or his designee to cast the District’s ballot for the ACWA President, Vice President, and bylaws update at ACWA’s Fall Conference on November 29, 2017. 9. REPORTS, INFORMATION ITEMS, AND COMMENTS 9.1. Directors' Reports 9.2. General Manager's Report 9.3. General Counsel's Report 9.4. Future Agenda Items and Staff Tasks 10. COMMITTEE REPORTS 10.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) · Next meeting scheduled November 20, 2017 at 4:00 p.m. 10.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) · Next meeting scheduled December 18, 2017 at 4:00 p.m. at YL City Hall. 10.3. Joint Agency Committee with City of Placentia (Miller/Nederhood) · Next meeting yet to be scheduled. 11. INTERGOVERNMENTAL MEETINGS 11.1. MWDOC/OCWD Joint Planning Committee - October 25, 2017 (Jones/Nederhood) 11.2. OCSD Board - October 25, 2017 (Hawkins) 11.3. OCWD Groundwater Adventure Tour - October 26, 2017 (Jones) 11.4. ISDOC - October 26, 2017 (Hawkins/Nederhood) 11.5. MWDOC Board - November 1, 2017 (Nederhood) 11.6. OCSD Operations Committee - November 1, 2017 (Jones) 11.7. YL State of the City - November 2, 2017 (Jones/Miller) 11.8. MWDOC Elected Officials' Forum - November 2, 2017 (Jones/Miller/Nederhood) 11.9. Well 21 Ribbon Cutting Ceremony - November 3, 2017 (Miller/Nederhood) 11.10. ISDOC Executive Committee - November 7, 2017 (Nederhood) 11.11. YL City Council - November 7, 2017 (Miller) 11.12. LAFCO - November 8, 2017 (Nederhood - As Needed) 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from November 15 - December 31, 2017 13. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 13.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager 14. ADJOURNMENT 14.1. A strategic planning workshop has been scheduled Thursday, November 16, 2017 at 6:30 p.m. The next Regular Board of Directors Meeting will be held Tuesday, November 28, 2017. Closed Session (if necessary) will begin at 5:30 p.m. or 6:00 p.m. depending on time requirements 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: November 14, 2017 Subject:Minutes of the Board of Directors Workshop Meeting Held September 20, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2017-09-20_-_Minutes_-_BOD_(B).doc Minutes Minutes Minutes of the YLWD Board of Directors Workshop Meeting Held September 20, 2017 at 6:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Wednesday, September 20, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:35 p.m. The following items were taken out of order. 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Marc Marcantonio, General Manager Al Nederhood, Vice President Brett Barbre, Assistant General Manager Andrew J. Hall, Director Steve Conklin, Engineering Manager Phil Hawkins, Director John DeCriscio, Operations Manager Brooke Jones, Director Gina Knight, HR/Risk and Safety Manager Delia Lugo, Finance Manager Art Vega, Information Technology Manager Annie Alexander, Executive Assistant Kelly McCann, Senior Accountant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP 2. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS None. 5. DISCUSSION ITEMS 5.1. Update of District’s Strategic Plan Staff reviewed the previous process utilized to create the District’s 2009 strategic plan and 2011-2013 update. Minutes of the YLWD Board of Directors Workshop Meeting Held September 20, 2017 at 6:30 p.m. 2 Discussion ensued regarding the time period and level of detail to be covered in the new plan, other comparative agencies plans, purpose of the District’s various planning documents, and potential use of a facilitator. Terry Harris (resident) commented on suggested areas of focus and level of public involvement in the District’s strategic planning process. Discussion followed regarding strategies for improved public engagement. Mr. Harris (resident) also commented on accomplishments of the Ad Hoc Citizens Advisory Committee. Director Hall made a motion that the next strategic planning workshop focus on the following: District’s current mission/vision statements and top level goals; framework of topics to be addressed at future workshops; one- page comparison of other agencies’ strategic plans; and a 15-minute overview of the 2015 Urban Water Management Plan. Discussion continued regarding public engagement efforts and key topics to be considered in the strategic planning process. Director Hawkins seconded the motion which carried 5-0. 6. ADJOURNMENT 6.1. The meeting was adjourned at 7:49 p.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.2 AGENDA REPORT Meeting Date: November 14, 2017 Subject:Minutes of the Board of Directors Special and Regular Meetings Held September 26, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2017-09-26_-_Minutes_-_BOD_(A).doc Minutes Minutes 2017-09-26_-_Minutes_-_BOD_(B).doc Minutes Minutes Minutes of the YLWD Board of Directors Special Meeting Held September 26, 2017 at 5:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, September 26, 2017, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 5:31 p.m. 2. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Gina Knight, HR/Risk and Safety Manager Al Nederhood, Vice President (Arrived 5:32 p.m.) Annie Alexander, Executive Assistant Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director (Arrived 5:32 p.m.) ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP 3. PUBLIC COMMENTS None. 4. CLOSED SESSION The meeting was adjourned to Closed Session at 5:32 p.m. All Directors were present in addition to General Counsel Andrew Gagen and HR/Risk and Safety Manager Gina Knight. 4.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 6:35 p.m. General Counsel Gagen reported that no action was taken during Closed Session that was required to be reported under the Brown Act. Minutes of the YLWD Board of Directors Special Meeting Held September 26, 2017 at 5:30 p.m. 2 2017-XXX 5. ADJOURNMENT 5.1. The meeting was adjourned at 6:35 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, September 26, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:40 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Brett Barbre, Assistant General Manager Al Nederhood, Vice President John DeCriscio, Operations Manager Andrew J. Hall, Director Gina Knight, HR/Risk and Safety Manager Phil Hawkins, Director Art Vega, Information Technology Manager Brooke Jones, Director Annie Alexander, Executive Assistant Bryan Hong, Water Quality Engineer Anthony Manzano, Senior Project Manager Kelly McCann, Senior Accountant ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Elected Official Liaison Reports None. 6. PUBLIC COMMENTS Jon Hansen (resident) spoke in support of the new Board and against the hiring of an Assistant General Manager. Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 2 2017-XXX Jay Grewal (resident) commented on reserves and spoke against the District’s use of consultants and in favor of refunding surplus revenue. 7. CONSENT CALENDAR Director Hall made a motion, seconded by Director Hawkins, to approve the Consent Calendar. Motion carried 5-0. 7.1. Minutes of the Board of Directors Regular Meeting Held July 25, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $1,673,851.15. 7.3. Claim for Damages Filed by Wailea Property Partners, LLC Recommendation: That the Board of Directors reject the claim filed by Wailea Property Partners, LLC and refer it to ACWA/JPIA for further handling. 7.4. Reschedule Regular Board Meeting in December Recommendation: That the Board of Directors reschedule the regular meeting on Tuesday, December 26, 2017 to Wednesday, December 27, 2017 at 8:30 a.m. 8. ACTION CALENDAR 8.1. Approval of Change Order Number 1 for the Fairmont Booster Pump Station Upgrade Project Staff reviewed the reasons for and costs associated with the requested Change Order including delays caused by inclement weather, differing site conditions, and unknown utilities. Discussion followed regarding the origin of the excess groundwater, average percentage of construction cost increases due to change orders, results of the geological survey in relation to the necessary excavation, and the contractors request for a no-cost 40 calendar day extension. Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 3 2017-XXX Rick Nelson (resident) commented on the coating recommended for the roof hatch frames which was not included in the District’s specifications. Kent Ebinger (resident) commented on the benefits of plotting easements in relation to identifying the location of utilities. Director Hawkins made a motion, seconded by Director Jones, to approve Change Order No. 1 for $220,647.28 and 40 additional calendar days to Pacific Hydrotech Corporation for construction of the Fairmont Booster Pump Station Upgrade Project, Job No. 2010-11B. Motion carried 5-0. Director Jones requested that consideration of Item No. 8.2. be moved following Item No. 8.5. The Board agreed. 8.3. Management of District’s Other Postemployment Benefit (OPEB) Liabilities Staff reviewed a three, five, and seven-year pay down schedule for funding the District’s OPEB Section 115 trust at a level of 90%. Staff suggested the Board consider paying down the District’s OPEB liability in the amount of $557,515.30 per year for a period of three years. Discussion ensued regarding the purpose of the trust, associated service costs and interest, benefits paid on the behalf of retirees, annual deposits already being made, changes in the assumption rate and the District’s Net OPEB Liability, and the estimated minimum annual deposits needed to cover future benefits and service costs. Pat Nelson (resident) spoke in favor of paying down the District’s OPEB liability as quickly as possible. Jon Hansen (resident) commended a Board member on their examination of this matter. Jay Grewal (resident) spoke in favor of controlling costs in addition to paying down the District’s liabilities. Discussion regarding interest costs and the pay down schedule options followed. Staff was instructed to bring back a revised schedule to include a ten-year pay down option, associated savings in interest costs for each option, and deposit amounts already being paid. Jon Hansen (resident) commented on interest costs associated with the pay down schedule options. Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 4 2017-XXX Staff was also instructed to obtain and include additional clarification regarding interest costs. No action was taken on this matter. 8.4. Management of District’s Pension Liabilities Staff provided an overview of the District’s three tiers of employees as pertaining to participation in the California Public Employees’ Retirement System (PERS). Staff reviewed a five, ten, fifteen, and twenty-year pay down schedule for future funding of the District’s PERS liability in a Section 115 trust with the Public Agency Retirement Services (PARS) at a level of 90%. Staff recommended the Board consider opening a trust account with PARS and select a pay down schedule option with the deposit scheduled in July 2018. Staff then reviewed the estimated savings in interest costs for each option as compared to a thirty-year pay down. Pat Nelson (resident) spoke in favor of paying down the District’s PERS liability as soon as possible. Jon Hansen (resident) spoke in favor of the ten-year pay down option. Following discussion of the funding percentages for each tier, staff was instructed to bring back a revised schedule to include associated savings in interest costs and an amortization schedule for each option. Director Nederhood made a motion to open a Section 115 trust account with PARS. Motion failed for lack of second. Staff was also instructed to obtain information from PARS regarding the specifics of opening and managing a Section 115 trust. No action was taken on this matter. 8.5. Disposition of Positive Net Position as of June 30, 2017 Staff explained that during discussion at a previous meeting, it was determined that approximately $1,347,599 was available for discretionary spending possibilities by the Board. Options discussed were issuing a customer refund or paying down a portion the District’s PERS liability. Discussion followed regarding statements contained in a press release issued by Fitch in April 2017 regarding the District’s AA rating. Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 5 2017-XXX Pat Nelson (resident) spoke in favor of utilizing the aforementioned funds to pay off the District’s long term debt and against the issuance of a customer refund. Terry Harris (resident) commented on associated recommendations provided by the Ad Hoc Citizens Advisory Committee (AHCAC) and spoke in favor of a customer refund. Julia Schultz (resident) spoke in favor of paying down the District’s liabilities and against the issuance of a customer refund. Greg Shultz (resident) commented on the potential impact of forthcoming state mandates and educating District customers regarding the reasons for future rate increases. Kent Ebinger (resident) commented on information contained in a District newsletter regarding the previous rate increase and recommendations provided by the AHCAC associated with a customer refund. Jon Hansen (resident) commented on the AHCAC’s recommendations and spoke in favor of a customer refund. Susan Decker (resident) commented on the payoff of the District’s line of credit with Wells Fargo and spoke in favor of a customer refund. Rick Nelson (resident) spoke against the issuance of a customer refund and in favor of utilizing the funds for a water efficiency rebate program. Jeff Decker (resident) commented on the District’s historical net income, water rates, and cost of service. He also spoke in favor of a customer refund. Jay Grewal (resident) commented on Fitch’s ratings in relation to the risk of default, management of rates, and the issuance of a customer refund. A lengthy discussion regarding the options presented ensued, including the possibility of refunding $1.1M and applying the remainder to the District’s OPEB liability pending Fitch’s reaffirmation of the District’s AA rating. Also discussed was the need for revising the District’s reserves policy and establishing a policy for paying down the District’s PERS and OPEB liabilities. Director Hall made a motion, seconded by Director Nederhood, that any refund voted upon by the Board of Directors during this meeting would be subject to reaffirmation of the District’s AA rating by Fitch. Motion carried 5-0. Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 6 2017-XXX Director Nederhood made a motion, seconded by Director Hawkins, to pay down the District’s OPEB liability in the amount of $247,599 from the District’s Positive Net Position as of June 30, 2017. Motion carried 5-0. Director Jones made a motion, seconded by Director Nederhood, to issue a refund from the District’s remaining Positive Net Position as of June 30, 2017 in the amount of $1,100,000 to be divided equally by the number of current customers as of September 26, 2017. Motion carried 3-2 with Directors Hall and Miller voting No. 8.6. ACWA Region 10 Election of Officers and Board Members for 2018-2019 Term Staff briefly reviewed the election procedures and suggested the Board consider voting for the Nominating Committee’s recommended slate of candidates. Director Hall made a motion, seconded by Director Hawkins, to vote for the Nominating Committee’s recommended slate of candidates in the ACWA Region 10 Board Election. Motion carried 5-0. 8.2. Financial Reserves Policy for the Remainder of Fiscal Year 2018 Discussion focused on revising the policy to clarify the minimum, maximum, and target funding levels for the unrestricted reserve types. Also discussed were future revisions to language for the Capital Replacement Reserve and revising Section B for the Rate Stabilization Reserve to include an option for funding at a lower level. Jeff Decker (resident) spoke against the establishment of a rate stabilization reserve and commented on the District’s historical revenue. Jon Hansen (resident) spoke in favor of issuing a customer refund and spoke against the establishment of a rate stabilization fund. Kent Ebinger (resident) provided suggestions for interfacing with Fitch. Discussion followed regarding revising the minimum funding level for the Rate Stabilization Fund to 0% instead of 5%. Director Hall made a motion to approve Resolution No. 17-31 adopting a Financial Reserves Policy for the remainder of Fiscal Year 2018 with the following amendments: Clarify the language describing the minimum, maximum and target funding levels for each reserve type and include an option for funding the Rate Stabilization Reserve at a lower level. Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 7 2017-XXX Include the reserve values for the current fiscal year as an attachment. Director Hawkins seconded the motion which carried 5-0 on a Roll Call vote. Director Hall made a motion, seconded by Director Nederhood, to adjourn the meeting and postpone consideration of the remaining items on the agenda to the next regular meeting. Motion carried 5-0. Consideration of the following items was postponed to the next regular meeting. 9. DISCUSSION ITEMS 9.1. Budget to Actual Reports for the Month Ending August 31, 2017 9.2. Cash and Investment Report for Period Ending August 31, 2017 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports 10.2. General Manager's Report 10.3. General Counsel’s Report 10.4. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) Next meeting is 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 September 18, 2017 at 4:00 p.m. will be provided when available. Next meeting is scheduled December 18, 2017 at 4:00 p.m. at YL City Hall. Minutes of the YLWD Board of Directors Regular Meeting Held September 26, 2017 at 6:30 p.m. 8 2017-XXX 11.3. Joint Agency Committee with City of Placentia (Miller/Nederhood) Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS 12.1 YL Planning Commission – September 13, 2017 (Hawkins – As Needed) 12.2 YL Mayor’s Prayer Breakfast – September 14, 2017 (Jones/Miller/Nederhood) 12.3. ACWA Region 5 Tour – September 17, 2017 (Jones) 12.4. YL City Council – September 19, 2017 (Hall) 12.5. MWDOC – September 20, 2017 (Nederhood) 12.6. SDLA Governance Foundations Workshop – September 25, 2017 (Hall) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from September 27 – November 30, 2017 14. ADJOURNMENT 14.1. The meeting was adjourned at 9:42 p.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.3 AGENDA REPORT Meeting Date: November 14, 2017 Subject:Minutes of the Board of Directors Special and Regular Meetings Held October 10, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2017-10-10_-_Minutes_-_BOD_(A).doc Minutes Minutes 2017-10-10_-_Minutes_-_BOD_(B).doc Minutes Minutes Minutes of the YLWD Board of Directors Special Meeting Held October 10, 2017 at 5:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, October 10, 2017, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 5:33 p.m. 2. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Marc Marcantonio, General Manager Al Nederhood, Vice President Brett Barbre, Assistant General Manager Andrew J. Hall, Director Gina Knight, HR/Risk and Safety Manager Brooke Jones, Director Annie Alexander, Executive Assistant DIRECTORS ABSENT Phil Hawkins, Director ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP 3. PUBLIC COMMENTS None. 4. CLOSED SESSION The meeting was adjourned to Closed Session at 5:34 p.m. All Directors with the exception of Director Hawkins were present. Also present were General Counsel Andrew Gagen and HR/Risk and Safety Manager Gina Knight. 4.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 6:37 p.m. General Counsel Gagen reported that no action was taken during Closed Session that was required to be reported under the Brown Act. Minutes of the YLWD Board of Directors Special Meeting Held October 10, 2017 at 5:30 p.m. 2 5. ADJOURNMENT 5.1. The meeting was adjourned at 6:37 p.m. Annie Alexander Assistant Board Secretary Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, October 10, 2017, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:37 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 Brett Barbre, Assistant General Manager Andrew J. Hall, Director Steve Conklin, Engineering Manager Brooke Jones, Director John DeCriscio, Operations Manager Gina Knight, HR/Risk and Safety Manager DIRECTORS ABSENT Delia Lugo, Finance Manager Phil Hawkins, Director Annie Alexander, Executive Assistant Rick Walkemeyer, IS Administrator Kaden Young, Management Analyst ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP Tom Lindsey, Councilmember, City of Yorba Linda Jennifer Meza, Senior Client Services Coordinator, Public Agency Retirement Systems 4. ADDITIONS/DELETIONS TO THE AGENDA None. 5. INTRODUCTIONS AND PRESENTATIONS The following items were taken out of order. 5.2. Elected Official Liaison Reports Councilmember Tom Lindsey commented on a recent wildfire and commended District staff for their preparation efforts. He also commented Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 2 2017-XXX on an upcoming public hearing and landscaping assessment ballot as well his attendance at MWDSC’s recent infrastructure inspection tour. Assistant General Manager Brett Barbre, in his role as Director for MWDSC and MWDOC, reported on MWDSC’s recent vote in favor of the California WaterFix. He also commented on the status of litigation with the San Diego County Water Authority. Discussion followed regarding the cost and financing for construction projects associated with the California WaterFix. 5.1. Introduction of Newly Hired Employees General Manager Marc Marcantonio introduced Kaden Young, newly hired Management Analyst. 6. PUBLIC COMMENTS Jeff Decker (resident) commented on documents he obtained from YLWD’s website related to the District’s credit ratings from Fitch and Standard & Poors. He also provided suggestions for interfacing with Fitch. 7. CONSENT CALENDAR Vice President Nederhood stated he had a question on Item No. 7.4. and Director Hall stated he had a correction on Item No. 7.3. Director Jones made a motion, seconded by Director Hall, to approve Item Nos. 7.1., 7.2., and 7.5. Motion carried 4-0-0-1 with Director Hawkins being absent. 7.1. Minutes of the Board of Directors Regular Meeting Held August 8, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.2. Minutes of the Board of Directors Regular Meeting Held August 22, 2017 Recommendation: That the Board of Directors approve the minutes as presented. Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 3 2017-XXX 7.5. Renewal of Auto and General Liability Insurance Policy with Association of California Water Agencies Joint Powers Insurance Authority (ACWA-JPIA) Recommendation: That the Board of Directors approve payment to ACWA-JPIA in the amount of $227,720.17 for renewal of the District’s auto and general liability insurance policy through October 1, 2018. Director Hall requested that the name “Daniel” be corrected to “Danielle” in the minutes for the August 24, 2017 workshop meeting. Vice President Nederhood asked if costs associated with the purchase of computer servers would be capitalized. Staff responded affirmatively. Director Hall made a motion, seconded by Director Jones, to approve Item No. 7.3. as corrected and Item No. 7.4. Motion carried 4-0-0-1 with Director Hawkins being absent. 7.3. Minutes of the Board of Directors Workshop Meeting Held August 24, 2017 Recommendation: That the Board of Directors approve the minutes as presented. 7.4. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $2,421,892.14. 8. ACTION CALENDAR 8.1. Establishing Public Agency Retirement Services (PARS) Public Agencies Post-Employment Benefits Trust and Adopting Pay Down Schedules for the District’s Other Post Employment Benefits (OPEB) and Public Employees’ Retirement System (PERS) Liabilities Staff reviewed the purpose of this item and associated recommendations. Discussion followed regarding the District’s OPEB and PERS liabilities, financial benefits provided by establishing a trust account with PARS, the District’s Annual Required Contribution (ARC) for OPEB liabilities, funds being utilized to open the trust account, actuarial valuation of the District’s OPEB liability, management of investments with PARS, and PARS’ organizational structure. Jennifer Meza from PARS reviewed the organizations services, operations, and primary contacts. Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 4 2017-XXX Staff noted that General Counsel had reviewed the draft agreement and provided suggested revisions to PARS. Ms. Meza also reviewed PARS’ service fees, required financial reporting of pension liabilities, and investment strategies. Discussion continued regarding the amount budgeted for this fiscal year’s ARC payment and including it with the funds being utilized to open the trust account. Selection of the investment strategy will be discussed in a future workshop meeting. Director Hall made a motion, seconded by Director Nederhood to: (1) approve Resolution No. 17-32 adopting the Public Agencies Post- Employment Benefits Trust administered by PARS, subject to review as to form by General Counsel; (2) direct staff to make a payment in the amount of $471,599 in order to open the PARS account; and (3) adopt a 5 year pay down schedule for the District’s OPEB liabilities, beginning July 1, 2017, in the amount of $377,239. Motion carried 4-0-0-1 on a Roll Call with Director Hawkins being absent. Discussion ensued regarding the District’s projected PERS liabilities, pay down schedule options, associated investment return on contributions, and ability to adjust the selected pay down schedule. Staff noted that a formal policy for pay down of the District’s OPEB and PERS liabilities would be presented for consideration at the next regular meeting. Director Nederhood made a motion, seconded by Director Miller, to adopt a 10 year pay down schedule for the District’s PERS liabilities beginning July 1, 2018; and (2) direct staff to prepare a policy with pay down schedules for the District’s OPEB and PERS liabilities for consideration at the October 24, 2017 regular meeting. Motion carried 4-0-0-1 with Director Hawkins being absent. 8.2. Construction Contract for the Drilling of Well 22 Staff explained that bids were received from five contractors for this project. Following review and tabulation of the bid documents, staff recommended award to Bakersfield Well & Pump Company. Discussion regarding next phases of the project followed. Jeff Decker (resident) commented on the District’s Capital Improvement Plan (CIP) and total budget for the project. Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 5 2017-XXX Director Hall made a motion, seconded by Director Miller, to award the Construction Contract for the Drilling of Well 22 to Bakersfield Well & Pump Company for $676,629.90, Job No. J2009-22 #22. Motion carried 4-0-0-1 with Director Hawkins being absent. 8.3. Waterline Replacement for Tract 15199 at the Northwest Corner of La Palma Ave and Camino de Bryant Staff explained that $50K was included in the FY18 budget to begin the design work for this project. Construction was scheduled to take place during FY19 for an estimated cost of $850K. Due to the number of main breaks in recent years and the City’s planned repaving of the affected streets, staff recommended the entire project be completed this year in order to minimize resident inconvenience. Discussion ensued regarding issues with the pipeline material and aggressive soils. Staff noted the City was willing to delay repaving the affected streets to accommodate completion of the project. Discussion continued regarding any existing warranty on the pipeline material, estimated paving costs, and community outreach efforts. Director Hall made a motion, seconded by Director Miller, to authorize staff to proceed with replacement of approximately 2,300 feet of waterline within Tract 15199 for an estimated cost of $900,000. Motion carried 4-0-0-1 with Director Hawkins being absent. 9. DISCUSSION ITEMS 9.1. Budget to Actual Reports for the Month Ending August 31, 2017 Staff reviewed key information contained in the reports. Discussion focused on cumulative volumetric water revenue, significant previous/planned expenditures, and water production/consumption trends and projections. 9.2. Cash and Investment Report for Period Ending August 31, 2017 Staff briefly reviewed the report and touched on the total average yield, days of cash on hand, and a recent debt service payment. Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 6 2017-XXX 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports Vice President Nederhood reported on a tour he had attended with Director Jones of the District’s sewer collection system. He also commended staff on their preparation efforts during the most recent wildfire. 10.2. General Manager's Report General Manager Marcantonio summarized staff’s preparation efforts during the most recent wildfire. He noted the District’s Emergency Operations Center had been activated primarily as a training exercise and reported on the fire’s status. He then asked each of the managers (or their designee) to report on activities within their respective departments. 10.3. General Counsel’s Report None. 10.4. Future Agenda Items and Staff Tasks None. 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Miller/Nederhood) Minutes of the meeting held September 28, 2017 at 4:00 p.m. were provided in the agenda packet. Next meeting is scheduled November 20, 2017 at 4:00 p.m. 11.2. Joint Agency Committee with City of Yorba Linda (Miller/Hawkins) Minutes of the meeting held September 18, 2017 at 4:00 p.m. will be provided when available. Next meeting is scheduled December 18, 2017 at 4:00 p.m. at YL City Hall. Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 7 2017-XXX 11.3. Joint Agency Committee with City of Placentia (Miller/Nederhood) Next meeting yet to be scheduled. 12. INTERGOVERNMENTAL MEETINGS 12.1 YL Mayor’s Prayer Breakfast – September 14, 2017 (Jones/Miller/Nederhood) 12.2 ACWA Region 5 Tour – September 17, 2017 (Jones) 12.3. YL City Council – September 19, 2017 (Hall) 12.4. MWDOC – September 20, 2017 (Nederhood) 12.5. SDLA Governance Foundations Workshop – September 25, 2017 (Hall) 12.6. ISDOC Executive Committee – October 3, 2017 (Nederhood) 12.7. YL City Council – October 3, 2017 (Jones) 12.8. MWDOC Board – October 4, 2017 (Nederhood) 12.9. OCSD Operations Committee – October 4, 2017 (Jones) 12.10. MWDSC Infrastructure Inspection Trip – October 6, 2017 (Jones/Nederhood) 13. BOARD OF DIRECTORS ACTIVITY CALENDAR 13.1. Meetings from October 11 – December 31, 2017 14. CONFERENCES, SEMINARS, AND SPECIAL EVENTS 14.1. MWDSC Infrastructure Inspection Trip – October 6, 2017 MWDOC Elected Officials’ Forum – November 2, 2017 Director Hall made a motion, seconded by Director Miller, to ratify and/or approve Director attendance at these events if desired. Motion carried 4-0-0-1 with Director Hawkins being absent. General Manager Marcantonio noted that some Directors would not be in attendance at the second regular meeting in December which was recently rescheduled to Wednesday, December 27, 2017. He suggested the Board consider meeting on another date or cancelling the meeting. Minutes of the YLWD Board of Directors Regular Meeting Held October 10, 2017 at 6:30 p.m. 8 2017-XXX Following discussion, the Board requested an action item be placed on the December 12, 2017 agenda to authorize payment of unpaid bills due before year end. Ratification of said payments would be placed as an action item on the January 9, 2018 agenda. 15. ADJOURNMENT 15.1. The meeting was adjourned at 9:27 p.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.4 AGENDA REPORT Meeting Date: November 14, 2017 Subject:Minutes of the Board of Directors Workshop Meeting Held October 19, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2017-10-19_-_Minutes_-_BOD.doc Minutes Minutes Minutes of the YLWD Board of Directors Workshop Meeting Held October 19, 2017 at 6:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, October 19, 6:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 6:32 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 Brett Barbre, Assistant General Manager Andrew J. Hall, Director Steve Conklin, Engineering Manager Phil Hawkins, Director John DeCriscio, Operations Manager Brooke Jones, Director Gina Knight, HR/Risk and Safety Manager Delia Lugo, Finance Manager Art Vega, Information Technology Manager Annie Alexander, Executive Assistant ALSO PRESENT Art Kidman, Partner, Kidman Law LLP 4. PUBLIC COMMENTS None. 5. DISCUSSION ITEMS 5.1. Comparison of Other Agencies’ Strategic Plans Staff reviewed the mission and vision statements of the South Coast Water District, East Orange County Water District, and Mesa Water District as compared to YLWD’s. Staff also outlined the structures and areas of focus in the strategic plans for these same agencies. Topics included organizational enhancements, maintenance of infrastructure, sustainability of supply, and improved customer service. Discussion regarding public engagement strategies followed. Minutes of the YLWD Board of Directors Workshop Meeting Held October 19, 2017 at 6:30 p.m. 2 2017-XXX Terry Harris (resident) commented on the importance of public engagement. Staff continued reviewing areas of focus in the strategic plans including financial management, participation in regional activities, and emergency preparedness. 5.2. Overview of 2015 Urban Water Management Plan (UWMP) Staff reviewed the purpose of the UWMP and noted the 2015 publication was available on the District’s website. Discussion touched on key factors and projections contained within the document. 5.3. Review of District’s Mission, Vision and Goals Staff reviewed the mission, vision, goals and initiatives as identified in the District’s 2011-2013 strategic plan. The Board will review these elements and provide individual feedback to the General Manager. President Miller commented on Eastern Municipal Water District’s mission, vision and guiding principles, a copy of which was made available to the Board. Vice President Nederhood requested staff provide a presentation at a future meeting regarding needed improvements to the District’s audio/video system in the Board room. Discussion ensued regarding utilizing a top-down versus bottom-up approach for strategic planning. Future evaluation of Board effectiveness, the District’s core values, efficacy of the 2011-2013 strategic plan, and the number and prioritization of goals were also discussed. Terry Harris (resident) commented on the challenges facing the District in relation to the strategic planning process. Following discussion, it was the consensus of the Board to set the agenda for the next strategic planning workshop as follows: Mission Statement (15 Minutes) Vision Statement (15 Minutes) Goals (Remaining Time) Staff was tasked with composing an information paper regarding advanced metering infrastructure including costs and experiences of other utilities. Minutes of the YLWD Board of Directors Workshop Meeting Held October 19, 2017 at 6:30 p.m. 3 2017-XXX 6. ADJOURNMENT 6.1. The meeting was adjourned at 8:28 p.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.5 AGENDA REPORT Meeting Date: November 14, 2017 Subject:Minutes of the Board of Directors Special Meeting Held October 24, 2017 STAFF RECOMMENDATION: That the Board of Directors approve the minutes as presented. ATTACHMENTS: Name:Description:Type: 2017-10-24_-_Minutes_-_BOD_(A).doc Minutes Minutes Minutes of the YLWD Board of Directors Special Meeting Held October 24, 2017 at 5:30 p.m. 1 2017-XXX MINUTES OF THE YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Tuesday, October 24, 2017, 5:30 p.m. 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER The meeting was called to order at 5:31 p.m. 2. ROLL CALL DIRECTORS PRESENT STAFF PRESENT J. Wayne Miller, President Brett Barbre, Assistant General Manager Al Nederhood, Vice President Gina Knight, HR/Risk and Safety Manager Phil Hawkins, Director Annie Alexander, Executive Assistant Brooke Jones, Director DIRECTORS ABSENT Andrew J. Hall, Director ALSO PRESENT Andrew Gagen, Partner, Kidman Law LLP 3. PUBLIC COMMENTS None. 4. CLOSED SESSION The meeting was adjourned to Closed Session at 5:32 p.m. All Directors with the exception of Director Hall were present. Also present were General Counsel Andrew Gagen and HR/Risk and Safety Manager Gina Knight. 4.1. Public Employee Performance Evaluation Pursuant to Section 54957 of the California Government Code Title: General Manager The Board reconvened in Open Session at 6:18 p.m. General Counsel Gagen reported that no action was taken during Closed Session that was required to be reported under the Brown Act. Minutes of the YLWD Board of Directors Special Meeting Held October 24, 2017 at 5:30 p.m. 2 2017-XXX 5. ADJOURNMENT 5.1. The meeting was adjourned at 6:18 p.m. Annie Alexander Assistant Board Secretary ITEM NO. 7.6 AGENDA REPORT Meeting Date: November 14, 2017 Budgeted:Yes To:Board of Directors Cost Estimate:$842,258.11 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 $842,258.11. DISCUSSION: The items on this disbursement list includes: A check of $285,130.95 to Orange County Water District for August 2017 In-Lieu water and water basin lease. The balance of $268,140.48 is routine invoices. The Accounts Payable check register total is $553,271.43; Payroll No. 21 total is $288,986.68; and the total of all listed disbursements for this agenda report is $842,258.11. 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_1114.pdf Cap Sheet Backup Material CkReg111417.pdf Check Register Backup Material 17_CC_1114.pdf Credit Card Summary Backup Material Summary of Disbursements November 14, 2017 CHECK NUMBERS & WIRES: Computer Checks 70848—70957 $ 548,111.06 VOID 70882 & 70949 $ 0.00 ____________ $ 548,111.06 WIRES: W 103017 So. California Edison $ 5,160.37 _____________ $ 5,160.37 TOTAL OF CHECKS & WIRES $553,271.43 PAYROLL NO. 21: Direct Deposits $ 180,437.54 Third Party Checks 6797—6808 $ 17,902.67 Payroll Taxes $ 54,029.53 EFT – CalPERS Payroll #21 $ 36,616.94 $ 288,986.68 TOTAL OF PAYROLL $288,986.68 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $842,258.11 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF NOVEMBER 14, 2017 ==================================================================. Check No.Date Vendor Name Amount Description 70957 11/14/2017 3T Equipment Company Inc.1,853.71 SEWER MAIN REPAIR PARTS 70848 10/25/2017 ACWA/JPIA 29,306.91 1ST QTR 2017 WORKER COMPENSATION CALCULATION 70873 11/14/2017 ACWA-Assn Of Ca Water Agencies 22,850.00 2018 ANNUAL AGENCY DUES 70874 11/14/2017 Al Nederhood 159.22 MILEAGE REIMBURSEMENT - OCTOBER 2017 70875 11/14/2017 Alternative Hose Inc.38.81 HOSE ASSEMBLY - UNIT #168 70871 11/14/2017 AMS PAVING 112.70 CUSTOMER REFUND 70876 11/14/2017 Anaheim Wheel & Tire 326.00 VEH. MAINTENANCE - UNIT #179 & #182 70854 11/14/2017 ANDREW ZWAN 6.32 CUSTOMER REFUND 70877 11/14/2017 Answer One Communications 435.00 VIRTUAL RECEPTIONIST SERVICE 70878 11/14/2017 Aqua-Metric Sales Co.1,202.85 REPLACEMENT METERS 70879 11/14/2017 Aramark 573.68 UNIFORM SERVICE 70858 11/14/2017 ASPEN RODEO 643.63 CUSTOMER REFUND 70880 11/14/2017 AT & T - Calnet3 4,241.38 ATT CALNET3 70881 11/14/2017 Autoscribe Corporation 1,011.00 PAYMENT VISION GATEWAY 70850 11/14/2017 BARBARA ROMO 27.89 CUSTOMER REFUND 70883 11/14/2017 Bee Busters, Inc 125.00 BEE ABATEMENT - COMMERCIAL 70884 11/14/2017 Bentley Systems, Inc.6,050.00 EADOC MANAGE SERVICE 70885 11/14/2017 BrightView Tree Care Services Inc.18,343.75 LANDSCAPE & TREE MAINTENANCE - MULTIPLE LOCATIONS 70886 11/14/2017 Brooke Jones 69.34 MILEAGE REIMBURSEMENT - OCTOBER 2017 70888 11/14/2017 CalCard US Bank 21,821.64 CREDIT CARD TRANSACTIONS - OCTOBER 2017 70887 11/14/2017 Calolympic Safety Co.572.30 SENSORS - O, CO & H2S 70868 11/14/2017 CALVARY CHAPEL OF YORBA LINDA 1,822.50 CUSTOMER REFUND 70889 11/14/2017 CDW Government, Inc 2,969.09 IT EQUIPMENT - PRINTERS & COMPUTER EQUIPMENT 70849 11/14/2017 CHARLOTTE KOVACH 25.00 CUSTOMER REFUND 70851 11/14/2017 CHIOU JANE CHEN 9.20 CUSTOMER REFUND 70890 11/14/2017 City Of Anaheim 10,194.70 LAKEVIEW & RICHFIELD -ELECTRICITY CHARGES- 09/13-10/13 70891 11/14/2017 Clinical Lab. Of San Bern.2,210.00 LAB SAMPLES - AUG/SEPT 2017 70892 11/14/2017 Culligan of Santa Ana 8.55 EQUIPMENT PE SOFTENER 70893 11/14/2017 Cynthia Botts 742.50 SEPTEMBER & OCTOBER 2017 - PROJECT PLANNING 70894 11/14/2017 Daniels Tire Service 1,561.50 VEHICLE MAINTENANCE - UNIT#197 70895 11/14/2017 Dapper Tire Co. Inc.793.37 VEH. MAINTENANCE - UNIT #179 & #187 70901 11/14/2017 Dean Criske Trucking 1,155.19 ROAD MATERIAL - SAND & BASE 70896 11/14/2017 Dell Marketing L.P.1,947.06 PRO SUPPORT PLUS - 10/2018 70872 11/14/2017 DENNIS MEADE 58.40 CUSTOMER REFUND 70856 11/14/2017 DESLEY JONES 18.52 CUSTOMER REFUND 70897 11/14/2017 Diane Dalton 470.00 SAFETY BOOTS & CERTIFICATE REIMBURSEMENT 70898 11/14/2017 Dick's Lock & Safe Inc.298.65 SERVICE CALL - FIRE GATE SERVICE 70900 11/14/2017 DME Incorporated 81.35 HIGHLAND #1 - REPLACEMENT PARTS 70902 11/14/2017 Eisel Enterprises, Inc.1,544.07 METER BOX, LIDS, AND COVERS 70903 11/14/2017 Enthalpy Analytical, Inc.840.00 WATER SAMPLES - WELL 11 70904 11/14/2017 Federal Express 66.06 SHIPPING FEES 70905 11/14/2017 Fry's Electronics 371.37 IT HARDWARE SUPPLIES 70906 11/14/2017 Fullerton Paint & Flooring 471.04 CLEANING/PAINTING SUPPLIES 70907 11/14/2017 G.M. Sager Construction Co., Inc.5,900.00 ASPHALT PAVING 70908 11/14/2017 Graybar Electric Co 208.79 BUILDING REPAIR PARTS 70909 11/14/2017 Haaker Equipment Co.5,224.43 VEHICLE MAINTENANCE & SEWER CAMERA REPAIR 70910 11/14/2017 Harrington Industrial 1,305.19 "FLAMMABLE GAS" SIGNS & REPLACEMENT PARTS 70911 11/14/2017 Hydrex Pest Control 175.00 PEST CONTROL 70912 11/14/2017 Infosend Inc.10,746.71 BILLING & POSTAGE FEE 70913 11/14/2017 Inland Kenworth USA Inc 96.67 VEHICLE MAINTENANCE - UNIT #197 70914 11/14/2017 Jackson's Auto Supply - Napa 378.25 VEHICLE MAINTENANCE - UNIT #145, #179 & #191 70863 11/14/2017 JACQUELINE J KENNEDY 33.23 CUSTOMER REFUND 70915 11/14/2017 Jacqueline Segura 12.09 MILEAGE REIMBURSEMENT - OCTOBER 2017 70865 11/14/2017 JAMES LEWIS 57.40 CUSTOMER REFUND 70853 11/14/2017 JANET ORTEGA 101.68 CUSTOMER REFUND 70864 11/14/2017 JAVIER BRITO 158.13 CUSTOMER REFUND 70916 11/14/2017 Jeremy Smith 660.00 EDUCATION REIMBURSEMENT - CONSTRUCTION SAFETY 70870 11/14/2017 JOSE VALDEZ 139.75 CUSTOMER REFUND 70861 11/14/2017 JP MORGAN CHASE 407.19 CUSTOMER REFUND 70859 11/14/2017 JS ALLIANCE CORP 263.20 CUSTOMER REFUND 70917 11/14/2017 Konica Minolta Business 854.48 LEASE - C258 & C558 COPIERS 70918 11/14/2017 Light Bulbs Etc 669.77 ELECTRICAL SUPPLIES 70919 11/14/2017 Marc Marcantonio 208.61 MILEAGE & TRAVEL EXPENSE REIMBURSEMENT - OCTOBER 2017 Yorba Linda Water District Check Register For Checks Dated: 10/11/2017 thru 10/24/2017 70920 11/14/2017 Mario S. Banuelos 1,625.00 PUMP STATION REPAIRS 70921 11/14/2017 Mc Fadden-Dale Hardware 775.21 HARDWARE SUPPLIES, TOOLS & EQUIPMENT 70922 11/14/2017 Mc Master-Carr Supply Co.46.22 SHOP SUPPLIES 70923 11/14/2017 Measurement Control Systems, Inc 618.11 MISCELLANEOUS WAREHOUSE PARTS 70937 11/14/2017 Measurement Specialties, Inc.886.71 PROD METERS & SENSORS 70924 11/14/2017 Minuteman Press 337.25 OFFICE EXPENSE 70925 11/14/2017 National Foam Inc.6,549.18 EMERGENCY EQUIPMENT SUPPLIES 70926 11/14/2017 NEOGOV, Inc.5,250.00 PERFORMANCE EVALUATION LICENSE 70927 11/14/2017 Nickey Kard Lock Inc 5,279.45 FUEL - 10/01/17 - 10/15/17 70928 11/14/2017 Office Solutions 2,192.87 OFFICE SUPPLIES, PAPER, TONER & OFFICE EQUIPMENT 70929 11/14/2017 Omni Enterprise Inc.2,990.00 JANITORIAL SERVICE - AUGUST 17 70930 11/14/2017 Orange County - Tax Collector 359.50 (2) ENCROACHMENT PERMITS 70931 11/14/2017 Orange County Water District 285,130.95 IN-LIEU WATER - AUGUST 2017 & WATER BASIN LEASE - YEAR 6 70932 11/14/2017 Orvac Electronics 596.44 MAINTENANCE SUPPLIES 70938 11/14/2017 P.T.I. Sand & Gravel, Inc.1,518.51 MATERIAL - +30 FILL SAND & COLD MIX ASPHALT 70857 11/14/2017 PAN PACIFIC MGMT CO 289.57 CUSTOMER REFUND 70933 11/14/2017 Phil Hawkins 18.19 MILEAGE REIMBURSEMENT - OCTOBER 17 70934 11/14/2017 Plumbers Depot Inc.3,342.88 TOOLS & EQUIPMENT 70935 11/14/2017 Powerstride Battery 614.40 (4) BATTERIES - H4DX 70936 11/14/2017 Praxair Distribution 310.96 WELDING SUPPLIES 70862 11/14/2017 QIANG ZHANG 32.92 CUSTOMER REFUND 70939 11/14/2017 Quinn Company 822.30 MAINTENANCE - RICHFIELD GENERATOR 70869 11/14/2017 REAL PROPERTY MANAGEMENT 59.35 CUSTOMER REFUND 70852 11/14/2017 RICHARD REVELES 66.43 CUSTOMER REFUND 70940 11/14/2017 Sanders Paving, Inc.5,781.25 CONCRETE REPAIR 70866 11/14/2017 SHAWNINE ALVI 41.77 CUSTOMER REFUND 70860 11/14/2017 SIMON CHEN 44.46 CUSTOMER REFUND W103017 10/30/2017 Southern Calif Edison Co.5,160.37 MIRALOMA AVE -ELECTRICITY CHARGES- SEPTEMBER 2017 70941 11/14/2017 Specialized Painting Co., Inc.4,600.00 SAND,PAINT,& FINISH WOOD - STOREFRONT COUNTER 70944 11/14/2017 St.Jude Hospital Yorba Linda 210.00 POST EMPLOYMENT PHYSICAL 70942 11/14/2017 Stantec Consulting Services In 17,661.00 PROFESSIONAL SERVICES - FAIRMONT PUMP STATION & RICHFIELD ROAD PIPELINE 70943 11/14/2017 Steelclad, Inc.4,850.00 LANDSCAPE SERVICE 70945 11/14/2017 Switch Ltd 1,075.87 DATA HOSTING - COLOCATION 70855 11/14/2017 T.CLARK GRAHAM 64.85 CUSTOMER REFUND 70946 11/14/2017 The Shredders 33.00 ON SITE SHRED SERVICE 70947 11/14/2017 Time Warner Cable 179.24 MIRALOMA BASIC CABLE SERVICE 70948 11/14/2017 Titan Water Technology Inc 295.00 OCTOBER 2017 - SITE SERVICE 70952 11/14/2017 U S Postmaster 262.00 P.O. BOX 309 - LEASE 70950 11/14/2017 United Industries 1,213.37 PPE EQUIPMENT & CLEANING SUPPLIES 70953 11/14/2017 United Water Works, Inc.5,717.65 VALVE REPAIR PARTS & WAREHOUSE STOCK 70951 11/14/2017 UNUM Life Insurance Co. of America 2,881.12 LIFE, AD&D, STD, & LTD-NOV17 70882 11/14/2017 VOID 0.00 VOID 70949 11/14/2017 VOID 0.00 VOID 70899 11/14/2017 White Nelson Diehl Evans LLP 9,000.00 3RD INTERIM BILLING - YEAR END 2017 AUDIT 70954 11/14/2017 WIN-911 800.00 SOFTWARE MAINTENANCE & SUPPORT 70955 11/14/2017 Xylem Dewatering Solutions Inc 3,062.48 SEWER LINE REPAIR 70956 11/14/2017 YO Fire 5,195.15 HYDRANT REPAIR PARTS & WAREHOUSE STOCK 70867 11/14/2017 ZELMAN YORBA LINDA LLC 400.63 CUSTOMER REFUND 553,271.43 10-19-2017 PAYROLL #21 - EMPLOYEE DIRECT DEPOSIT 180,437.54 10-19-2017 PAYROLL #21 - PAYROLL TAX PAYMENT 54,029.53 10-19-2017 PAYROLL #21 - CALPERS EFT 36,616.94 6797 10-19-2017 COLONIAL LIFE & ACCIDENT 128.3 6798 10-19-2017 FLEX ADVANTAGE 1914.72 6799 10-19-2017 LINCOLN FINANCIAL GROUP 3651.06 6800 10-19-2017 NATIONWIDE RETIREMENT SOLUTIONS 8271.33 6801 10-19-2017 KATHERINE VARGAS-LIMON 231 6802 10-19-2017 CALIFORNIA STATE DISBURSEMENT UNIT 366.92 6803 10-19-2017 CALIFORNIA STATE DISBURSEMENT UNIT 339.69 6804 10-19-2017 CALIFORNIA STATE DISBURSEMENT UNIT 404.3 6805 10-19-2017 AMERICAN HERITAGE LIFE 1543.13 6806 10-19-2017 MIDLAND LIFE INSURANCE 240 6807 10-19-2017 RELIANCE DI 47.54 6808 10-19-2017 AMERITAS 764.68 288,986.68 Payroll Checks #21 Vendor Name Amount Description Praxair 163.96 Welding Supplies for Operations Time Warner Cable 199.88 Spectrum Business Services - Richfield Time Warner Cable 4,037.46 Spectrum Business Internet Services - September & October 2017 CSMFO 370.00 Registration for CSMFO Conference for McCann, K CSMFO 150.00 Registration for CSMFO December Chapter Meeting - 6 attendees MWDOC 160.00 Registration for WEROC Disaster Finance Training for McCann, K The Westin Mission Hills Resort 385.06 Travel Expense - CALPERS Education Forum for Lim, V The Westin Mission Hills Resort 385.06 Travel Expense - CALPERS Education Forum for Segura, J ARMA SCIE 40.00 Registration for CSMFO November Chapter Meeting - Knight & Millen Home Depot 10.76 Landscape material Expressions Florist 88.46 Sympathy Arranagement for Freddie Ojeda Office Solutions 285.49 Copier Paper Bistro NAPA 17.99 Travel Expense - AWWA CA/NV Conference - Marcantonio Lampost Pizza 181.81 Lunch for Operations durning safety training ARC-Flash & NFPA 2018 MWDOC 160.00 Registration for WEROC Disaster Finance Training for Lugo, D Light Bulbs ETC 160.82 Light Bulbs Graybar Electric 80.29 Building repair parts Amazon.com 144.93 Equipment for Emergency Operations Center Café Alfresco 30.00 Travel Expense - AWWA CA/NV Conference - Marcantonio Home Depot 73.17 Vehicle Equipment Fleet Pride 91.25 Vehicle Repair Parts The Westin Mission Hills Resort 385.06 Travel Expense - CALPERS Education Forum for Lugo, D Online Information Services 614.88 Online Collection transactions & utility exchange report Answer 1, LLC 571.40 After hours answering service - October 2017 Verizon Wireless 3,316.76 Verizon wireless - 8/21/17 - 9/20/17 Placentia Disposal 529.50 (2) Front loads - Richfield Rd Home Depot 204.21 Tools & equipment Costco 321.31 Supplies for Operations Breakroom - Coffee & Creamer ORVAC 48.46 LED Lights for Facilities Home Depot 16.58 Building repair parts OCWA 60.00 Registration for OCWA Luncheon for 2 Engineers NCH Software 27.96 Software for Editing Audio Records CAPIO 45.00 Registration for workshop on Beyond 24/7 for McCann, K Amazon.com 36.00 Ribbon for Well 21 Opening Ceremony ServerSupply.com 1,683.00 Dell Memory Cards for Servers Home Depot 10.76 Equipment for Warehouse City of Anaheim 510.00 Annual Permit Fee KB Design 29.70 Apparel for staff Home Depot 57.02 Equipment for Operations R.E. Michel 325.37 Filters and Scale for A/C units EnviroZone 876.63 Sediment Bags for Water Production OCWA 30.00 Registration for OCWA Luncheon for Marcantonio OCWA 40.00 Registration for OCWA Luncheon for President Miller Southwest.com 547.21 Travel Expense - AWWASafety Conference - Smith, J Blue Agave Southwest 40.29 Lunch for interview panel - Knight, McAllaster, Lim Home Depot 65.02 Equipment for Warehouse Amazon.com 210.88 Vehicle Repair Parts Gemplers.com 106.08 Mechanics supplies Amazon.com 51.68 Mechanics supplies Home Depot 213.42 Tools & equipment Amazon.com 99.96 Floor standing Podium Amazon.com 26.30 Employee recognition awards Kohler 568.52 Waterless urinal maintenance balls Anaheim Public Works 2,764.00 Richfield Road Project #2014-23 - Inspection & Adminstration Fees FedEx 172.29 Conservation credit check - office expense 21,821.64 Cal Card Credit Card U S Bank ITEM NO. 7.7 AGENDA REPORT Meeting Date: November 14, 2017 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Gina Knight, HR/Risk and Safety Manager Dept:Human Resources/Risk Management Prepared By:Gina Knight, HR/Risk and Safety Manager Subject:Claim for Damages Filed By Mercury Insurance Group SUMMARY: A claim was received by the District on October 31, 2017 for damages resulting from a District truck backing out of a parking stall and into the passenger side of an idling car that stopped right behind the truck. STAFF RECOMMENDATION: That the Board of Directors reject the claim filed by Mercury Insurance Group and refer it to ACWA- JPIA for further handling. DISCUSSION: On October 31, 2017, the District received a claim filed by Mercury Insurance Group on behalf of their client, Ms. Sandoval for property damages resulting from a backing incident. On October 25, 2017, Ms. Sandoval was traveling through a parking lot, she stopped her car and about the time her car was idling a District Utility truck backed into the side of the passenger side of her vehicle. The claim form is on file and available for review in the office of the General Manager. ITEM NO. 8.1 AGENDA REPORT Meeting Date: November 14, 2017 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Gina Knight, HR/Risk and Safety Manager Prepared By:Gina Knight, HR/Risk and Safety Manager Subject:Amending the Personnel Rules STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 17-34 amending the Personnel Rules for the Yorba Linda Water District. DISCUSSION: On January 24, 2013, the Board of Directors adopted a resolution revising Rule 1.02 Coverage of the District's Personnel Rules implementing At-Will employment for future Unrepresented employees. Since this time, staff noticed difficulty in recruiting for highly specialized and certified positions when top candidates began to decline the District's job offer. Staff began to ask questions as to why candidates were rejecting employment offers and discovered that a number of candidates identified the At-Will employment provision being a leading factor for their refusal. Staff was directed to revise the Personnel Rules to eliminate the At-Will employment provision as well as revise Rule 3.02 Classification Changes to clarify the District's procedure when making any changes to a classification. The procedure will require ratification by the Board of Directors at the next available regular Board meeting following the action. Attached to this report is a copy of Resolution No. 17-34 and Exhibit A showing the revised sections. ATTACHMENTS: Name:Description:Type: Redline_-_Personnel_Rules.pdf Redline Version Backup Material Resolution_No._17-34_- _Amending_Personnel_Rules.docx Resolution Resolution Resolution_No._17-34_-_Exhibit_A.docx Exhibit Exhibit EXHIBIT A 1.02 COVERAGE These rules apply to employees in the Competitive Service, unless a broader coverage is expressly extended by a specific provision within these rules. The Competitive Service includes all full-time and part-time positions except the following: A. General Manager and Assistant General Manager B. Employees hired on or after January 24, 2013, to serve in the following positions: Finance Manager, Human Resources/Risk Manager, Operations Manager, Information Technology Manager, Engineering Manager, Chief Plant Operator, Public Information Officer, Senior Project Manager, Water Maintenance Superintendent, Information Systems Administrator, Customer Service Supervisor, Executive Secretary, Human Resources Analyst, Management Analyst, Human Resources Technician, Senior Accountant, Senior Construction Inspector, Water Quality Engineer, Project Engineer and SCADA Administrator (“Unrepresented Employees”). This exception shall include existing District employees who are promoted to one of these positions on or after January 24, 2013. BC. Temporary Employees and part time employees working less than 30 hours per week The General Manager, Assistant General Manager, and the individuals described in Section 1.02(B), above, are at-will employees of the District and serve at the will of the General Manager, or in the case of the General Manager, at the will of the Board of Directors, and may be dismissed without cause or right of appeal. These Rules supersede any and all District or Departmental personnel management policies, rules, regulations and procedures previously adopted, to the extent that they are inconsistent. If any section, sub-section, sentence, clause or phrase of these Rules is found to be illegal, such findings shall not affect the validity of the remaining portion of these Rules. These rules do not create any contract of employment, expressed or implied, or any rights in the nature of a contract. 3.02 CLASSIFICATION CHANGES When a new position is proposed for creation in the Competitive Service or an existing one is reclassified or abolished, the manager proposing such action must submit the justification to the Personnel Officer who shall conduct whatever study may be required. The General Manager or Personnel Officer representative may initiate, at any time, a study to determine the appropriateness of any position's classification allocation. The General Manager shall make the final determination on all actions arising under this provision, subject to approvalratification by the Board of Directors at the next available regular Board meeting when the determination results in an amendment to the Plan. The District shall provide affected recognized Bargaining Units an information copy of the new class specification for any proposed classification relevant to that Bargaining Unit. Resolution No. 17-34 Amending Personnel Rules 1 RESOLUTION NO. 17-34 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING THE PERSONNEL RULES FOR THE YORBA LINDA WATER DISTRICT WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Personnel Rules by Resolution No. 13-01; and WHEREAS, Section 1.02 of the Personnel Rules sets forth the coverage and applicability of said rules; and WHEREAS, Section 3.02 of the Personnel Rules sets forth the procedures for classification changes; and WHEREAS, it is the Board of Director’s desire to amend these sections. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Sections 1.02 and 3.02 of the Personnel Rules for the Yorba Linda Water District be amended as set forth in Exhibit A. PASSED AND ADOPTED this 14th day of November 2017 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District Resolution No. 17-34 Amending Personnel Rules 2 ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP Resolution No. 17-34 Amending Personnel Rules 3 EXHIBIT A 1.02 COVERAGE These rules apply to employees in the Competitive Service, unless a broader coverage is expressly extended by a specific provision within these rules. The Competitive service includes all full-time and part-time positions except the following: A. General Manager and Assistant General Manager B. Temporary Employees and part time employees working less than 30 hours per week. The General Manager, Assistant General Manager, and individuals described in Section 1.02(B), above, are at-will employees of the District and serve at the will of the General Manager, or in the case of the General Manager, at the will of the Board of Directors, and may be dismissed without cause or right of appeal. These Rules supersede any and all District or Departmental personnel management policies, rules, regulations and procedures previously adopted, to the extent that they are inconsistent. If any section, sub-section, sentence, clause or phrase of these Rules is found to be illegal, such findings shall not affect the validity of the remaining portion of these Rules. These Rules do not create any contract of employment, expressed or implied, or any rights in the nature of a contract. 3.02 CLASSIFICATION CHANGES When a new position is proposed for creation in the Competitive Service or an existing one is reclassified or abolished, the manager proposing such action must submit the justification to the Personnel Officer who shall conduct whatever study may be required. The General Manager or Personnel Officer representative may initiate, at any time, a study to determine the appropriateness of any position's classification allocation. The General Manager shall make the final determination on all actions arising under this provision, subject to ratification by the Board of Directors at the next available regular Board meeting when the determination results in an amendment to the Plan. The District shall provide affected recognized Bargaining Units an information copy of the new class specification for any proposed classification relevant to that Bargaining Unit. ITEM NO. 8.2 AGENDA REPORT Meeting Date: November 14, 2017 Budgeted:Yes To:Board of Directors Funding Source:All Funds From:Marc Marcantonio, General Manager Presented By:Gina Knight, HR/Risk and Safety Manager Dept:Human Resources/Risk Management Prepared By:Gina Knight, HR/Risk and Safety Manager Subject:Amending Employee Compensation Letters to Rescind the At-Will Employment Provision and Modify the Pay Plans for Unrepresented Employees STAFF RECOMMENDATION: That the Board of Directors: (1) adopt Resolution No. 17-35 to amend Exhibit A and further amend Exhibit E of the Employee Compensation Letter (Resolution No. 15-08) in order to rescind the At-Will employment provision and modify the pay plan for Management employees for the remainder of Fiscal Years 2015-2018. (2) adopt Resolution No. 17-36 to amend both Exhibits A and E of the Employee Compensation Letter (Resolution No. 15-07) in order to rescind the At-Will employment provision and modify the pay plan for Professional and Confidential employees for the remainder of Fiscal Year 2015-2018. DISCUSSION: On February 14, 2013, the Board of Directors adopted a resolution incorporating provisions of AB 340 and instituting At-Will employment for all future unrepresented employees. Since this time, staff noticed difficulty in recruiting for highly specialized and certified positions. Several top candidates declined job offers due to both the At-Will employment provision and the District not being able to pay the salaries requested by these candidates. Staff is confident that the District will become more appealing to future candidates with the elimination of the At-Will provision and the modification to the pay plans for both Management and Professional and Confidential positions. In addition, internal candidates will most likely apply for promotional opportunities. Attached to this report are copies of Resolution Nos. 17-35 and 17-36 and the corresponding Exhibits. ATTACHMENTS: Name:Description:Type: Redline_-_ME_Comp_Letter.pdf Redline Version Backup Material Resolution_No._17-35_- _Amending_ME_Comp_Letter.docx Resolution Resolution Resolution_No._17-35_-_Exhibit_A.docx Exhibit Exhibit Resolution_No._17-35_-_Exhibit_E.pdf Exhibit Exhibit Redline_-_PC_Comp_Letter.pdf Redline Version Backup Material Resolution_No._17-36_- _Amending_PC_Comp_Letter.docx Resolution Resolution Resolution_No._17-36_-_Exhibit_A.docx Exhibit Exhibit Resolution_No._17-36_-_Exhibit_E.pdf Exhibit Exhibit Management Employees Compensation Letter FYs 2015-2018 Management Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII. The Assistant General Manager classificationAll Management Employees hired or promoted to a Management position on or after January 24, 2013 are at-will employees of the District, serves at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Management Employee position prior to January 24, 2013 are not at-will employees of the District and maintain the appeal rights as set forth in the District’s Personnel Rules. VIII. Effective July 1, 2016, the District will implement an eleven (11) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous nine (9) step salary schedule.Effective November 14, 2017, the District will implement a thirteen (13) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous eleven (11) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 11. Resolution No. 17-35 Amending Resolution No. 15-08 Related to Management Employees Compensation Letter 1 RESOLUTION NO. 17-35 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING EXHIBITS A AND E OF RESOLUTION NO. 15-08 TO RESCIND THE AT-WILL EMPLOYMENT PROVISION AND MODIFY THE PAY PLAN FOR MANAGEMENT EMPLOYEES FOR THE REMAINDER OF FISCAL YEARS 2015-2018 WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Employee Compensation Letter for Management Employees for Fiscal Years 2015-2018 (Resolution No. 15-08); and WHEREAS, the Board of Directors subsequently adopted Resolution No. 17-24 amending Exhibits B and E of the Employee Compensation Letter (Resolution No. 15-08) to modify the classifications, salary ranges and pay plan for Management employees; and WHEREAS, it is the desire of the Board of Directors to amend Exhibit A and further amend Exhibit E of the Employee Compensation Letter (Resolution No. 15-08) in order to rescind the At-Will employment provision with the exception of the Assistant General Manager classification and modify the pay plan for Management employees for the remainder of Fiscal Years 2015-2018. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Exhibit A - Management Employees Compensation Letter and Exhibit E - Management Employees Pay Plan of Resolution No. 15-08 be amended to read as attached hereto and by this reference incorporated herein. PASSED AND ADOPTED this 14th day of November 2017, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District Resolution No. 17-35 Amending Resolution No. 15-08 Related to Management Employees Compensation Letter 2 ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP Exhibit A Resolution No. 15-08 Employee Compensation Letter And Pay Plans for Management Employees Fiscal Years 2015-2018 I. The General Manager shall prepare an Employee Compensation Letter for the Board of Directors’ consideration. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Management Employee Group (Exhibit B). II. Effective July 1, 2015, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2015-2016 (reflecting a 2.5% base salary increase). III. Effective July 1, 2016, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2016-2017 (reflecting a 2% base salary increase). IV. Effective July 1, 2017, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2017-2018 (reflecting a 2% base salary increase). V. The District’s current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. The District has three tiers for retirement benefits: a. Tier 1 applies to District employees hired prior to January 26, 2012; b. Tier 2 applies to District employees hired between January 26, 2012 and December 31, 2012 and any District employees hired on or after January 1, 2013 who are defined as “classic members” under the Public Employees’ Retirement Law (“PERL”); and c. Tier 3 applies to District employees hired on or after January 1, 2013 who are defined as “new members” under the PERL. 1. Tier 1 and Tier 2 employees Tier 1 employees are enrolled in the 2% at 55 retirement formula. Tier 2 employees are enrolled in the 2% at 60 retirement formula. Tier 1 and Tier 2 employees pay the full employee contribution rate which is 7% of pensionable compensation. 2. Tier 3 employees Management Employees Compensation Letter FYs 2015-2018 Management Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII. The Assistant General Manager classification serves at the will of the General Manager and may be dismissed without cause or right of appeal. VIII. Effective November 14, 2017, the District will implement a thirteen (13) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous eleven (11) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 11. The District shall endeavor to have performance reviews completed by the employee’s anniversary date with the effective date of the merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee is entitled as a result of the performance review rating shall be retroactive to the anniversary date. IX. Management Employees shall accrue vacation leave time with pay as follows: Management Employees Compensation Letter FYs 2015-2018 Duration of Continuous Regular Employment Hours Accrued per Pay Period During 1st through 60th month (0-5 yrs) 3.077 hrs = 2.0 wks/yr During 61st through 120th month (5-10 yrs) 4.615 hrs = 3.0 wks/yr During 121st through 180th month (10-15 yrs) 5.384 hrs = 3.5 wks/yr During 181st through 240th month (15-20 yrs) 6.153 hrs = 4.0 wks/yr During 241st month and thereafter (20+ yrs) 6.922 hrs = 4.5 wks/yr X. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Management Employee under age 70, on the first day of the month following date of hire, in accordance with the provisions of the contract between the District and any company of the District’s choosing providing such coverage. Management Employees may purchase additional life insurance coverage up to $300,000 by authorizing the additional premium to be deducted from their salary. In addition, a Management Employee can purchase life insurance for their spouse up to half of the employee’s coverage level. Some medical restrictions may apply. XI. The District shall pay 100% of the premium for hospital and medical insurance for all Management Employees who work in excess of 30 hours per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Management Employee dependent coverage for covered employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XII. The District shall pay 100% of the premium for dental insurance for all Management Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Management Employee dependent coverage for covered Management Employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management Employees shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XIII. The District shall pay 100% of the premium for vision insurance for Management Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward dependent coverage for covered Management Employees with one or more Management Employees Compensation Letter FYs 2015-2018 dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management Employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XIV. For Management Employees who are employed by the District prior to December 8, 2011, and subject to carrier approval, the District shall pay the amounts provided in paragraphs XI, XII and XIII of this agreement for a period of time which is equivalent to one (1) year or pro ration thereof on a monthly basis for each three (3) years of service to the District or pro ration thereof on a quarterly basis. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete consecutive years of service with the District, must provide ninety (90) days’ notice of intent to retire, retire from the District in good standing and remain in a retired status. The retired Management Employee must make any contribution required of a regular Management Employee pursuant to paragraphs XI, XII and XIII prior to the first day of the month in which coverage is to be extended. Failure of a Management Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. When the Management retiree, or their spouse, reaches age 65 and is eligible for Medicare, the coverage provided by the District shall become secondary to Medicare for the remainder of the benefit period. Management Employees hired on or after December 8, 2011 shall be ineligible to receive this benefit. XV. A Management Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of their final salary for ⅜ of their accumulated days of sick leave, if any, at the time of separation from active employment. The remaining ⅝ of their accumulated days of sick leave will be converted into CalPERS service credit. XVI. Management Employees who are laid off from District employment after being employed by the District for five (5) or more complete consecutive years of regular employment shall be compensated for accumulated, unused sick leave above 400 hours as follows: Management Employees Compensation Letter FYs 2015-2018 YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XVII. The District shall provide a long-term disability plan for Management Employees which has a 90-day elimination period and provides 66 ⅔% of an employee’s monthly pre-disability earnings to a maximum of $7,000 per month for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XVIII. The District shall provide a short-term disability plan for Management Employees which has a twenty-nine (29) day elimination period up to an employee’s eligibility for long-term disability and provides 66 ⅔% of an employee’s weekly pre-disability earnings to a maximum of $1,500 per week for a designated period of nine (9) weeks in accordance with coverage procured by the District from a carrier to be determined at the District’s sole discretion. XIX. The District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Management Employee’s salary or the employee’s actual amount of deferred compensation per payroll period, whichever amount is lesser. XX. Management Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this Employee Compensation Letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. XXI. In situations where a Management Employee has been injured in a non-duty accident and their disability leave exceeds thirty calendar days, their merit review and anniversary dates will be adjusted accordingly for that portion of leave exceeding thirty (30) calendar days. XXII. The District established a cafeteria plan under Section 125 of the Internal Revenue Code. Employees can voluntarily participate in both tax advantage flexible benefit and dependent care plans. Employees can elect to deduct up to an annual maximum of $2,000 towards the flexible benefit plan and/or an annual maximum of $5,000 towards the dependent care plan from their paychecks over twenty-four (24) pay periods per calendar year. The cafeteria plan will allow Management Employees to convert their share of insurance premiums, un- Management Employees Compensation Letter FYs 2015-2018 reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. XXIII. The District shall reimburse Management Employees for sums paid to the appropriate agencies for obtaining or renewing treatment and/or distribution certificates and other professional certifications, registrations and job related training. XXIV. Management Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District purchased safety footwear in an amount not to exceed $200.00 each fiscal year. Safety footwear must meet American National Standards Institute (ANSI) minimum compression and impact performance standards in ANSI Z41- 1991 or provide equivalent protection. At the end of the current fiscal year, any unused funds shall not carry over into the next fiscal year. XXV. The District shall provide pre-approved reimbursement to Management Employees for the cost of tuition, fees, books and parking relating to educational courses directly related to an employee’s essential job duties for the employee’s present work classification as approved in advance by the General Manager and the Human Resources/Risk Manager. As education reimbursement each fiscal year, employees may receive up to the equivalent of one year’s full-time tuition at California State University for an in-state student. University and college-level course work must be undertaken at a Western Association of Schools and Colleges and Universities (WASC) accredited institution. To qualify for reimbursement, Management Employees must successfully complete a pre-approved course with a passing grade (C or better). In the event of a “Credit/No Credit” course, “Credit” will be considered a passing grade. Proof of payment and successful completion of the course with a passing grade as indicated in the District’s Educational Reimbursement Policy must accompany the Educational Tuition Reimbursement form (Exhibit A of the District’s Educational Reimbursement Policy). Management Employees shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee’s final check. Any remaining non-reimbursed amount shall be paid to the District within Management Employees Compensation Letter FYs 2015-2018 ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. In the event of a layoff or work hour reduction, reimbursement will cover courses that are already in progress, provided that the employee successfully completes them with a passing grade and fulfills the other provisions of the Educational Reimbursement Policy. XXVI. Management Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that a minimum of one- half (1/2) the vacation time to which the employee is entitled within the same annual period of the sold vacation time remains in the employee’s vacation account after the cash distribution. Sell-back of vacation time will only be paid on the second payday in November of each year. XXVII. Management Employees will be entitled to car allowance of $400.00/month as determined by the General Manager. The Engineering Manager, Finance Manager, IT Manager, Human Resources/Risk Manager, Operations Manager and Public Information Manager positions shall be eligible for this benefit. XXVIII. Management Employees shall receive a maximum of forty (40) hours of management leave with pay each fiscal year. Unused management leave time at the end of each fiscal year, June 30, will be paid during the following month of July with said time being calculated at the employee’s then straight time hourly rate. There will be no carry-over of management leave time to the next fiscal year. Management Employees joining after the start of the fiscal year shall receive a prorated benefit based on the number of remaining payroll periods in the fiscal year. XXIX. The Holiday schedule attached hereto as Exhibit F shall be in effect for full-time Management Employees covered by this Management Letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Management Employee normally would have worked other than for the holiday. For those Management Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday and a holiday falling on a Sunday, shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within the fiscal year in which it is accrued or the following fiscal year. Any unused floating holiday time will be cashed out at the employee’s base hourly rate at the end of Management Employees Compensation Letter FYs 2015-2018 the fiscal year following the fiscal year during which the time was accrued. For example any unused floating holiday time accrued during fiscal year 2015-16 would be paid out at the end of fiscal year 2016-17. In order to be eligible for holiday pay, a Management Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. XXX. The term of this Compensation Letter for Management Employees is for the period of July 1, 2015 to June 30, 2018. ___________________________ __________________ Marc Marcantonio Date General Manager Exhibit E YLWD Pay Plan-Management Employees Effective November 14,2017 through June 30,2018 Range I Step 1 I Step 2 1 Step 3 1 Step 4 1 Step 5 1 Step 6 Step 7 1 Step 8 Step 9 I Step 10 I Step 11 I Step 12 I Step 13 IME 33 Hourly $ 49.85 $ 51.10 $ 52.37 $ 53.68 $ 55.03 $ 56.40 $ 57.81 $ 59.26 $ 60.74 $ 62.26 $ 63.81 $ 65.41 $ 67.04 Monthly $ 8,640.67 $ 8,857.33 $ 9,077.47 $ 9,304.53 $ 9,538.53 $ 9,776.00 $ 10,020.40 $ 10,271.73 $ 10,528.27 $ 10,791.73 $ 11,060.40 $ 11,337.73 $ 11,620.27 Yearly $ 103,688 $ 106,288 $ 108,930 $ 111,654 $ 114,462 $ 117,312 $ 120,245 $ 123,261 $ 126,339 $ 129,501 $ 132,725 $ 136,053 $ 139,443 IME 34 Hourly $ 52.34 $ 53.65 $ 54.99 $ 56.37 $ 57.78 $ 59.22 $ 60.70 $ 62.22 $ 63.77 $ 65.37 $ 67.00 $ 68.68 $ 70.39 1 Monthly $ 9,072.27 $ 9,299.33 $ 9,531.60 $ 9,770.80 $ 10,015.20 $ 10,264.80 $ 10,521.33 $ 10,784.80 $ 11,053.47 $ 11,330.80 $ 11,613.33 $ 11,904.53 $ 12,200.93 Yearly $ 108,867 $ 111,592 $ 114,379 $ 117,250 $ 120,182 $ 123,178 $ 126,256 $ 129,418 $ 132,642 $ 135,970 $ 139,360 $ 142,854 $ 146,411 IME 35 Hourly $ 54.96 $ 56.33 $ 57.74 $ 59.19 $ 60.67 $ 62.18 $ 63.74 $ 65.33 $ 66.96 $ 68.64 $ 70.35 $ 72.11 $ 73.91 Monthly $ 9,526.40 $ 9,763.87 $ 10,008.27 $ 10,259.60 $ 10,516.13 $ 10,777.87 $ 11,048.27 $ 11,323.87 $ 11,606.40 $ 11,897.60 $ 12,194.00 $ 12,499.07 $ 12,811.07 Yearly $ 114,317 $ 117,166 $ 120,099 $ 123,115 $ 126,194 $ 129,334 $ 132,579 $ 135,886 $ 139,277 $ 142,771 $ 146,328 $ 149,989 $ 153,733 IME 36 Hourly $ 57.71 $ 59.15 $ 60.63 $ 62.14 $ 63.70 $ 65.29 $ 66.92 $ 68.60 $ 70.31 $ 72.07 $ 73.87 $ 75.72 $ 77.61 1 Monthly $ 10,003.07 $ 10,252.67 $ 10,509.20 $ 10,770.93 $ 11,041.33 $ 11,316.93 $ 11,599.47 $ 11,890.67 $ 12,187.07 $ 12,492.13 $ 12,804.13 $ 13,124.80 $ 13,452.40 1 Yearly $ 120,037 $ 123,032 $ 126,110 $ 129,251 $ 132,496 $ 135,803 $ 139,194 $ 142,688 $ 146,245 $ 149,906 $ 153,650 $ 157,498 $ 161,429 IME 37 Hourly $ 60.59 $ 62.11 $ 63.66 $ 65.25 $ 66.88 $ 68.56 $ 70.27 $ 72.03 $ 73.83 $ 75.67 $ 77.56 $ 79.50 $ 81.49 Monthly $ 10,502.27 $ 10,765.73 $ 11,034.40 $ 11,310.00 $ 11,592.53 $ 11,883.73 $ 12,180.13 $ 12,485.20 $ 12,797.20 $ 13,116.13 $ 13,443.73 $ 13,780.00 $ 14,124.93 Yearly $ 126,027 $ 129,189 $ 132,413 $ 135,720 $ 139,110 $ 142,605 $ 146,162 $ 149,822 $ 153,566 $ 157,394 $ 161,325 $ 165,360 $ 169,499 IME 38 Hourly $ 63.62 $ 65.21 $ 66.84 $ 68.51 $ 70.23 $ 71.98 $ 73.78 $ 75.63 $ 77.52 $ 79.46 $ 81.44 $ 83.48 $ 85.57 Monthly $ 11,027.47 $ 11,303.07 $ 11,585.60 $ 11,875.07 $ 12,173.20 $ 12,476.53 $ 12,788.53 $ 13,109.20 $ 13,436.80 $ 13,773.07 $ 14,116.27 $ 14,469.87 $ 14,832.13 Yearly $ 132,330 $ 135,637 $ 139,027 $ 142,501 $ 146,078 $ 149,718 $ 153,462 $ 157,310 $ 161,242 $ 165,277 $ 169,395 $ 173,638 $ 177,986 IME 39 Hourly $ 66.80 $ 68.47 $ 70.19 $ 71.94 $ 73.74 $ 75.58 $ 77.47 $ 79.41 $ 81.39 $ 83.43 $ 85.51 $ 87.65 $ 89.84 Monthly $ 11,578.67 $ 11,868.13 $ 12,166.27 $ 12,469.60 $ 12,781.60 $ 13,100.53 $ 13,428.13 $ 13,764.40 $ 14,107.60 $ 14,461.20 $ 14,821.73 $ 15,192.67 $ 15,572.27 1 Yearly $ 138,944 $ 142,418 $ 145,995 $ 149,635 $ 153,379 $ 157,206 $ 161,138 $ 165,173 $ 169,291 $ 173,534 $ 177,861 $ 182,312 $ 186,867 IME 40 Hourly $ 70.14 $ 71.90 $ 73.69 $ 75.54 $ 77.43 $ 79.36 $ 81.35 $ 83.38 $ 85.46 $ 87.60 $ 89.79 $ 92.03 $ 94.34 Monthly $ 12,157.60 $ 12,462.67 $ 12,772.93 $ 13,093.60 $ 13,421.20 $ 13,755.73 $ 14,100.67 $ 14,452.53 $ 14,813.07 $ 15,184.00 $ 15,563.60 $ 15,951.87 $ 16,352.27 Yearly $ 145,891 $ 149,552 $ 153,275 $ 157,123 $ 161,054 $ 165,069 $ 169,208 $ 173,430 $ 177,757 $ 182,208 $ 186,763 $ 191,422 $ 196,227 IME 41 Hourly $ 73.65 $ 75.49 $ 77.38 $ 79.31 $ 81.30 $ 83.33 $ 85.41 $ 87.55 $ 89.74 $ 91.98 $ 94.28 $ 96.64 $ 99.05 Monthly $ 12,766.00 $ 13,084.93 $ 13,412.53 $ 13,747.07 $ 14,092.00 $ 14,443.87 $ 14,804.40 $ 15,175.33 $ 15,554.93 $ 15,943.20 $ 16,341.87 $ 16,750.93 $ 17,168.67 Yearly $ 153,192 $ 157,019 $ 160,950 $ 164,965 $ 169,104 $ 173,326 $ 177,653 $ 182,104 $ 186,659 $ 191,318 $ 196,102 $ 201,011 $ 206,024 IME 42 Hourly $ 77.33 $ 79.27 $ 81.25 $ 83.28 $ 85.36 $ 87.50 $ 89.68 $ 91.93 $ 94.22 $ 96.58 $ 98.99 $ 101.47 $ 104.01 Monthly $ 13,403.87 $ 13,740.13 $ 14,083.33 $ 14,435.20 $ 14,795.73 $ 15,166.67 $ 15,544.53 $ 15,934.53 $ 16,331.47 $ 16,740.53 $ 17,158.27 $ 17,588.13 $ 18,028.40 Yearly $ 160,846 $ 164,882 $ 169,000 $ 173,222 $ 177,549 $ 182,000 $ 186,534 $ 191,214 $ 195,978 $ 200,886 $ 205,899 $ 211,058 $ 216,341 IME 43 Hourly $ 81.20 $ 83.23 $ 85.31 $ 87.44 $ 89.63 $ 91.87 $ 94.17 $ 96.52 $ 98.93 $ 101.41 $ 103.94 $ 106.54 $ 109.21 Monthly $ 14,074.67 $ 14,426.53 $ 14,787.07 $ 15,156.27 $ 15,535.87 $ 15,924.13 $ 16,322.80 $ 16,730.13 $ 17,147.87 $ 17,577.73 $ 18,016.27 $ 18,466.93 $ 18,929.73 Yearly $ 168,896 $ 173,118 $ 177,445 $ 181,875 $ 186,430 $ 191,090 $ 195,874 $ 200,762 $ 205,774 $ 210,933 $ 216,195 $ 221,603 $ 227,157 In the event of a keying/formula discrepancy,all pay plans(salary matrices)are calculated at 2.5%between each step and 5.0%between each range. Professional and Confidential Employees Compensation Letter FYs 2015-2018 Professional and Confidential Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to CalPERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII. All Professional and Confidential Employees hired or promoted to a Professional and Confidential position on or after January 24, 2013 are at-will employees of the District and serve at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Professional and Confidential Employee position prior to January 24, 2013 are not at-will employees of the District and maintain the appeal rights as set forth in the District’s Personnel Rules. VIII.VII. Effective July 1, 2016November 14, 2017, the District will implement an eleven thirteen (131) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous nineeleven (119) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 11. The District shall endeavor to have performance reviews completed by the employee’s anniversary date with the effective date of the merit salary increase Resolution No. 17-36 Amending Resolution No. 15-07 Related to Professional and Confidential Employees Compensation Letter 1 RESOLUTION NO. 17-36 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING EXHIBITS A AND E OF RESOLUTION NO. 15-07 TO RESCIND THE AT-WILL EMPLOYMENT PROVISION AND MODIFY THE PAY PLAN FOR PROFESSIONAL AND CONFIDENTIAL EMPLOYEES FOR THE REMAINDER OF FISCAL YEARS 2015-2018 WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Employee Compensation Letter for Supervisory and Confidential Employees for Fiscal Years 2015-2018 (Resolution No. 15- 07); and WHEREAS, the Board of Directors subsequently adopted Resolution No. 17-23 amending Exhibit B of the Employee Compensation Letter (Resolution No. 15-07) to modify the classifications and salary ranges for Professional and Confidential employees; and WHEREAS, it is the desire of the Board of Directors to amend both Exhibits A and E of the Employee Compensation Letter (Resolution No. 15-07) in order to rescind the At-Will employment provision and modify the pay plan for Professional and Confidential employees for the remainder of Fiscal Years 2015-2018. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Exhibit A - Professional and Confidential Employee Compensation Letter and Exhibit E - Professional and Confidential Employees Pay Plan for Fiscal Year 2017-2018 of Resolution No. 15-07 be amended to read as attached hereto and by this reference incorporated herein. PASSED AND ADOPTED this 14th day of November 8, 2017, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District Resolution No. 17-36 Amending Resolution No. 15-07 Related to Professional and Confidential Employees Compensation Letter 2 ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP Exhibit A Resolution No. 15-07 Employee Compensation Letter And Pay Plans for Professional and Confidential Employees Fiscal Years 2015-2018 I. The General Manager shall prepare an Employee Compensation Letter for the Board of Directors’ consideration. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Professional and Confidential Employee Group (Exhibit B). II. Effective July 1, 2015, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2015-2016 (reflecting a 2.5% base salary increase). III. Effective July 1, 2016, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2016-2017 (reflecting a 2% base salary increase). IV. Effective July 1, 2017, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2017-2018 (reflecting a 2% base salary increase). V. The District’s current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. The District has three tiers for retirement benefits: a. Tier 1 applies to District employees hired prior to January 26, 2012; b. Tier 2 applies to District employees hired between January 26, 2012 and December 31, 2012 and any District employees hired on or after January 1, 2013 who are defined as “classic members” under the Public Employees’ Retirement Law (PERL); and c. Tier 3 applies to District employees hired on or after January 1, 2013 who are defined as “new members” under the PERL. 1. Tier 1 and Tier 2 employees Tier 1 employees are enrolled in the 2% at 55 retirement formula. Tier 2 employees are enrolled in the 2% at 60 retirement formula. Tier 1 and Tier 2 employees pay the full employee contribution rate which is 7% of pensionable compensation. 2. Tier 3 employees Professional and Confidential Employees Compensation Letter FYs 2015-2018 Professional and Confidential Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to CalPERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII. Effective November 14, 2017, the District will implement a thirteen (13) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous eleven (11) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 11. The District shall endeavor to have performance reviews completed by the employee’s anniversary date with the effective date of the merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee is entitled as a result of the performance review rating shall be retroactive to the anniversary date. VIII. Professional and Confidential Employees shall accrue vacation leave time with pay as follows: Professional and Confidential Employees Compensation Letter FYs 2015-2018 Duration of Continuous Regular Employment Hours Accrued per Pay Period During 1st through 60th month (0-5 yrs) 3.077 hrs = 2.0 wks/yr During 61st through 120th month (5-10 yrs) 4.615 hrs = 3.0 wks/yr During 121st through 180th month (10-15 yrs) 5.384 hrs = 3.5 wks/yr During 181st through 240th month (15-20 yrs) 6.153 hrs = 4.0 wks/yr During 241st month and thereafter (20+ yrs) 6.922 hrs = 4.5 wks/yr IX. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Professional and Confidential Employee under age 70, on the first day of the month following date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Professional and Confidential Employees may purchase additional life insurance coverage up to $300,000 by authorizing the additional premium to be deducted from their salary. In addition, a Professional and Confidential Employee can purchase life insurance for their spouse up to half of the employee’s coverage level. Some medical restrictions may apply. X. The District shall pay 100% of the premium for hospital and medical insurance for all Professional and Confidential Employees who work in excess of 30 hours per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Professional and Confidential Employee dependent coverage for covered employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Professional and Confidential Employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XI. The District shall pay 100% of the premium for dental insurance for all Professional and Confidential Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Professional and Confidential Employee dependent coverage for covered Professional and Confidential Employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Professional and Confidential Employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XII. The District shall pay 100% of the premium for vision insurance for Professional and Confidential Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward dependent coverage for covered Professional and Confidential Professional and Confidential Employees Compensation Letter FYs 2015-2018 Employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Professional and Confidential Employee shall pay the cost of the difference in premium, to be deducted from their salary to cover the employee’s ⅓ share of the dependent coverage. XIII. For Professional and Confidential Employees who are employed by the District prior to December 8, 2011, and subject to carrier approval, the District shall pay the amounts provided in paragraphs XI, XII and XIII of this agreement for a period of time which is equivalent to one (1) year or pro ration thereof on a monthly basis for each three (3) years of service to the District or pro ration thereof on a quarterly basis. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete consecutive years of service with the District, must provide ninety (90) days’ notice of intent to retire, retire from the District in good standing and remain in a retired status. The retired Professional and Confidential Employee must make any contribution required of a regular Professional and Confidential Employee pursuant to paragraphs XI, XII and XIII prior to the first day of the month in which coverage is to be extended. Failure of a Professional and Confidential Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. When the Professional and Confidential retiree or their spouse reaches age 65 and is eligible for Medicare, the coverage provided by the District shall become secondary to Medicare for the remainder of the benefit period. Professional and Confidential Employees hired on or after December 8, 2011 shall be ineligible to receive this benefit. XIV. A Professional and Confidential Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of their final salary for ⅜ of their accumulated days of sick leave, if any, at the time of separation from active employment. The remaining ⅝ of their accumulated days of sick leave will be converted into CalPERS service credit. XV. Professional and Confidential Employees who are laid off from District employment after being employed by the District for five (5) or more complete consecutive years of regular employment, shall be compensated for accumulated, unused sick leave above 400 hours as follows: Professional and Confidential Employees Compensation Letter FYs 2015-2018 YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XVI. The District shall provide a long-term disability plan for Professional and Confidential Employees which has a 90-day elimination period and provides 66 ⅔% of an employee’s monthly pre-disability earnings to a maximum of $7,000 per month for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XVII. The District shall provide a short-term disability plan for Professional and Confidential Employees which has a twenty-nine (29) day elimination period up to an employee’s eligibility for long-term disability and provides 66 ⅔% of an employee’s weekly pre-disability earnings to a maximum of $1,500 per week for a designated period of nine (9) weeks in accordance with coverage procured by the District from a carrier to be determined at the District’s sole discretion. XVIII. The District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Professional and Confidential Employee’s salary or the employee’s actual amount of deferred compensation per payroll period, whichever amount is lesser. XIX. Professional and Confidential Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this Employee Compensation Letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. XX. In situations where a Professional and Confidential Employee has been injured in a non-duty accident and their disability leave exceeds thirty (30) calendar days, their merit review and anniversary dates will be adjusted accordingly for that portion of leave exceeding thirty (30) calendar days. XXI. The District established a cafeteria plan under Section 125 of the Internal Revenue Code. Employees can voluntarily participate in both tax advantage flexible benefit and dependent care plans. Employees can elect to deduct up to an annual maximum of $2,000 towards the flexible benefit plan and/or an annual maximum of $5,000 towards the dependent care plan from their paychecks over twenty-four (24) pay periods per calendar year. The cafeteria plan will allow Professional and Professional and Confidential Employees Compensation Letter FYs 2015-2018 Confidential Employees to convert their share of insurance premiums, un- reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. XXII. The District shall reimburse Professional and Confidential Employees for sums paid to the appropriate agencies for obtaining or renewing treatment and/or distribution certificates and other professional certifications, registrations and job related training. XXIII. Professional and Confidential Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00 each fiscal year. Safety footwear must meet American National Standards Institute (ANSI) minimum compression and impact performance standards in ANSI Z41- 1991 or provide equivalent protection. At the end of the current fiscal year, any unused funds shall not carry over into the next fiscal year. XXIV. The District shall provide pre-approved educational reimbursement to Professional and Confidential Employees for costs of tuition, fees, books and parking relating to educational courses directly related to an employee’s essential job duties for the employee’s present work classification as approved in advance by the General Manager and the Human Resources/Risk Manager. As education reimbursement each fiscal year, employees may receive up to the equivalent of one year’s full- time tuition at California State University for an in-state student. University and college-level course work must be undertaken at a Western Association of Schools and Colleges and Universities (WASC) accredited institution. To qualify for reimbursement, Professional and Confidential Employees must successfully complete a pre-approved course with a passing grade (C or better). In the event of a “Credit/No Credit” course, “Credit” will be considered a passing grade. Proof of payment and successful completion of the course with a passing grade as indicated in the District’s Educational Reimbursement Policy must accompany the Educational Tuition Reimbursement form (Exhibit A of the District’s Educational Reimbursement Policy). Professional and Confidential Employees shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period shall be considered a judgment due and owing to the District. The Professional and Confidential Employees Compensation Letter FYs 2015-2018 judgment amount shall be deducted from the employee’s final check. Any remaining, non-reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. In the event of a layoff or work hour reduction, reimbursement will cover courses that are already in progress, provided that the employee successfully completes them with a passing grade and fulfills the other provisions of the Educational Reimbursement Policy. XXV. Professional and Confidential Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that a minimum of one-half (½) the vacation time to which the employee is entitled within the same annual period of the sold vacation time remains in the employee’s vacation account after the cash distribution. Sell-back of vacation time will only be paid on the second payday in November of each year. XXVI. The Holiday schedule attached hereto as Exhibit F shall be in effect for full-time Professional and Confidential Employees covered by this Professional and Confidential Letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Professional and Confidential Employee normally would have worked other than for the holiday. For those Professional and Confidential Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday, and a holiday falling on a Sunday shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within the fiscal year in which it is accrued or the following fiscal year. Any unused floating holiday time will be cashed out at the employee’s base hourly rate at the end of the fiscal year following the fiscal year during which the time was accrued. For example, any unused floating holiday time accrued during fiscal year 2015-16 would be paid out at the end of fiscal year 2016-17. In order to be eligible for Holiday pay, a Professional and Confidential Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. XXVII. The District shall reimburse Professional and Confidential Employees for sums paid to the appropriate state agencies for obtaining or renewing of Distribution, Treatment and/or Collection certificates. In addition, a one-time per fiscal year payment of $150.00 per certificate shall be provided to an affected employee who Professional and Confidential Employees Compensation Letter FYs 2015-2018 has qualified for and been issued a State Water Resources Control Board (SWRCB) Distribution or Treatment and/or California Water Environment Association (CWEA) Collection Certificate(s) which has been determined in the sole discretion of the General Manager to be relevant to the employee’s duties and which is other than a certificate that is a job requirement. The $150.00 payment shall apply for any Distribution, Treatment and/or Collection Certificates issued by the SWRCB or CWEA that are required above and beyond the required certification for a specific classification within the District and shall be issued during each year in which the applicable certificate(s) remains valid and remains other than a certificate which is a job requirement. The table below identifies the positions that require specific State of California Certifications. Classification Req’d Treatment Req’d Distribution Req’d Collection SCADA Administrator T2 D3 Sr. Construction Inspector D2 Water Maintenance Superintendent D5 Water Production Superintendent T2 D5 Water Quality Engineer D3 XXVIII. The term of this Compensation Letter for Professional and Confidential Employees is for the period of July 1, 2015 to June 30, 2018. ___________________________ ______________________ Marc Marcantonio Date General Manager Exhibit E YLWD Pay Plan - Professional and Confidential Employees Effective November 14, 2017 through June 30, 2018 Range Step 1 Step 2 1 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 Step 12 I Step 13 PC 19 Hourly $ 25.18 $ 25.81 $ 26.45 $ 27.12 $ 27.79 $ 28.49 $ 29.20 $ 29.93 $ 30.68 $ 31.45 $ 32.23 $ 33.04 $ 33.86 Monthly $ 4,364.53 $ 4,473.73 $ 4,584.67 $ 4,700.80 $ 4,816.93 $ 4,938.27 $ 5,061.33 $ 5,187.87 $ 5,317.87 $ 5,451.33 $ 5,586.53 $ 5,726.93 $ 5,869.07 Yearly $ 52,374 $ 53,685 $ 55,016 $ 56,410 $ 57,803 $ 59,259 $ 60,736 $ 62,254 $ 63,814 $ 65,416 $ 67,038 $ 68,723 $ 70,429 PC 20 Hourly $ 26.44 $ 27.10 $ 27.78 $ 28.47 $ 29.18 $ 29.91 $ 30.66 $ 31.43 $ 32.21 $ 33.02 $ 33.84 $ 34.69 $ 35.56 Monthly $ 4,582.93 $ 4,697.33 $ 4,815.20 $ 4,934.80 $ 5,057.87 $ 5,184.40 $ 5,314.40 $ 5,447.87 $ 5,583.07 $ 5,723.47 $ 5,865.60 $ 6,012.93 $ 6,163.73 Yearly $ 54,995 $ 56,368 $ 57,782 $ 59,218 $ 60,694 $ 62,213 $ 63,773 $ 65,374 $ 66,997 $ 68,682 $ 70,387 $ 72,155 $ 73,965 PC 21 Hourly $ 27.76 $ 28.45 $ 29.17 $ 29.90 $ 30.64 $ 31.41 $ 32.19 $ 33.00 $ 33.82 $ 34.67 $ 35.54 $ 36.42 $ 37.34 Monthly $ 4,811.73 $ 4,931.33 $ 5,056.13 $ 5,182.67 $ 5,310.93 $ 5,444.40 $ 5,579.60 $ 5,720.00 $ 5,862.13 $ 6,009.47 $ 6,160.27 $ 6,312.80 $ 6,472.27 Yearly $ 57,741 $ 59,176 $ 60,674 $ 62,192 $ 63,731 $ 65,333 $ 66,955 $ 68,640 $ 70,346 $ 72,114 $ 73,923 $ 75,754 $ 77,667 PC 22 Hourly $ 29.15 $ 29.88 $ 30.62 $ 31.39 $ 32.18 $ 32.98 $ 33.80 $ 34.65 $ 35.52 $ 36.40 $ 37.31 $ 38.25 $ 39.20 Monthly $ 5,052.67 $ 5,179.20 $ 5,307.47 $ 5,440.93 $ 5,577.87 $ 5,716.53 $ 5,858.67 $ 6,006.00 $ 6,156.80 $ 6,309.33 $ 6,467.07 $ 6,630.00 $ 6,794.67 Yearly $ 60,632 $ 62,150 $ 63,690 $ 65,291 $ 66,934 $ 68,598 $ 70,304 $ 72,072 $ 73,882 $ 75,712 $ 77,605 $ 79,560 $ 81,536 PC 23 Hourly $ 30.61 $ 31.37 $ 32.16 $ 32.96 $ 33.78 $ 34.63 $ 35.49 $ 36.38 $ 37.29 $ 38.22 $ 39.18 $ 40.16 $ 41.16 Monthly $ 5,305.73 $ 5,437.47 $ 5,574.40 $ 5,713.07 $ 5,855.20 $ 6,002.53 $ 6,151.60 $ 6,305.87 $ 6,463.60 $ 6,624.80 $ 6,791.20 $ 6,961.07 $ 7,134.40 Yearly $ 63,669 $ 65,250 $ 66,893 $ 68,557 $ 70,262 $ 72,030 $ 73,819 $ 75,670 $ 77,563 $ 79,498 $ 81,494 $ 83,533 $ 85,613 PC 24 Hourly $ 32.14 $ 32.94 $ 33.76 $ 34.61 $ 35.47 $ 36.36 $ 37.27 $ 38.20 $ 39.16 $ 40.13 $ 41.14 $ 42.17 $ 43.22 Monthly $ 5,570.93 $ 5,709.60 $ 5,851.73 $ 5,999.07 $ 6,148.13 $ 6,302.40 $ 6,460.13 $ 6,621.33 $ 6,787.73 $ 6,955.87 $ 7,130.93 $ 7,309.47 $ 7,491.47 Yearly $ 66,851 $ 68,515 $ 70,221 $ 71,989 $ 73,778 $ 75,629 $ 77,522 $ 79,456 $ 81,453 $ 83,470 $ 85,571 $ 87,714 $ 89,898 PC 25 Hourly $ 33.74 $ 34.59 $ 35.45 $ 36.34 $ 37.25 $ 38.18 $ 39.13 $ 40.11 $ 41.11 $ 42.14 $ 43.19 $ 44.27 $ 45.38 Monthly $ 5,848.27 $ 5,995.60 $ 6,144.67 $ 6,298.93 $ 6,456.67 $ 6,617.87 $ 6,782.53 $ 6,952.40 $ 7,125.73 $ 7,304.27 $ 7,486.27 $ 7,673.47 $ 7,865.87 Yearly $ 70,179 $ 71,947 $ 73,736 $ 75,587 $ 77,480 $ 79,414 $ 81,390 $ 83,429 $ 85,509 $ 87,651 $ 89,835 $ 92,082 $ 94,390 PC 26 Hourly $ 35.43 $ 36.32 $ 37.22 $ 38.16 $ 39.11 $ 40.09 $ 41.09 $ 42.12 $ 43.17 $ 44.25 $ 45.35 $ 46.49 $ 47.65 Monthly $ 6,141.20 $ 6,295.47 $ 6,451.47 $ 6,614.40 $ 6,779.07 $ 6,948.93 $ 7,122.27 $ 7,300.80 $ 7,482.80 $ 7,670.00 $ 7,860.67 $ 8,058.27 $ 8,259.33 Yearly $ 73,694 $ 75,546 $ 77,418 $ 79,373 $ 81,349 $ 83,387 $ 85,467 $ 87,610 $ 89,794 $ 92,040 $ 94,328 $ 96,699 $ 99,112 PC 27 Hourly $ 37.20 $ 38.13 $ 39.09 $ 40.06 $ 41.06 $ 42.09 $ 43.14 $ 44.22 $ 45.33 $ 46.46 $ 47.62 $ 48.81 $ 50.03 Monthly $ 6,448.00 $ 6,609.20 $ 6,775.60 $ 6,943.73 $ 7,117.07 $ 7,295.60 $ 7,477.60 $ 7,664.80 $ 7,857.20 $ 8,053.07 $ 8,254.13 $ 8,460.40 $ 8,671.87 Yearly $ 77,376 $ 79,310 $ 81,307 $ 83,325 $ 85,405 $ 87,547 $ 89,731 $ 91,978 $ 94,286 $ 96,637 $ 99,050 $ 101,525 $ 104,062 PC 28 Hourly $ 39.06 $ 40.04 $ 41.04 $ 42.07 $ 43.12 $ 44.20 $ 45.30 $ 46.43 $ 47.59 $ 48.78 $ 50.00 $ 51.25 $ 52.53 Monthly $ 6,770.40 $ 6,940.27 $ 7,113.60 $ 7,292.13 $ 7,474.13 $ 7,661.33 $ 7,852.00 $ 8,047.87 $ 8,248.93 $ 8,455.20 $ 8,666.67 $ 8,883.33 $ 9,105.20 Yearly $ 81,245 $ 83,283 $ 85,363 $ 87,506 $ 89,690 $ 91,936 $ 94,224 $ 96,574 $ 98,987 $ 101,462 $ 104,000 $ 106,600 $ 109,262 PC 29 Hourly $ 41.02 $ 42.04 $ 43.09 $ 44.17 $ 45.27 $ 46.41 $ 47.57 $ 48.75 $ 49.97 $ 51.22 $ 52.50 $ 53.82 $ 55.16 Monthly $ 7,110.13 $ 7,286.93 $ 7,468.93 $ 7,656.13 $ 7,846.80 $ 8,044.40 $ 8,245.47 $ 8,450.00 $ 8,661.47 $ 8,878.13 $ 9,100.00 $ 9,328.80 $ 9,561.07 Yearly $ 85,322 $ 87,443 $ 89,627 $ 91,874 $ 94,162 $ 96,533 $ 98,946 $ 101,400 $ 103,938 $ 106,538 $ 109,200 $ 111,946 $ 114,733 In the event of a keying/formula discrepancy,all pay plans(salary matrices)are calculated at 2.5%between each step and 5.0%between each range. Exhibit E YLWD Pay Plan - Professional and Confidential Employees Effective November 14, 2017 through June 30, 2018 Range I Step 1 1 Step 2 1 Step 3 1 Step 4 Step 5 Step 6 Step 7 I Step 8 I Step 9 Step 10 Step 11 Step 12 I Step 13 PC 30 Hourly $ 43.07 $ 44.14 $ 45.25 $ 46.38 $ 47.54 $ 48.73 $ 49.94 $ 51.19 $ 52.47 $ 53.78 $ 55.13 $ 56.51 $ 57.92 Monthly $ 7,465.47 $ 7,650.93 $ 7,843.33 $ 8,039.20 $ 8,240.27 $ 8,446.53 $ 8,656.27 $ 8,872.93 $ 9,094.80 $ 9,321.87 $ 9,555.87 $ 9,795.07 $ 10,039.47 Yearly $ 89,586 $ 91,811 $ 94,120 $ 96,470 $ 98,883 $ 101,358 $ 103,875 $ 106,475 $ 109,138 $ 111,862 $ 114,670 $ 117,541 $ 120,474 PC 31 Hourly $ 45.22 $ 46.35 $ 47.51 $ 48.70 $ 49.91 $ 51.16 $ 52.44 $ 53.75 $ 55.10 $ 56.47 $ 57.88 $ 59.33 $ 60.82 Monthly $ 7,838.13 $ 8,034.00 $ 8,235.07 $ 8,441.33 $ 8,651.07 $ 8,867.73 $ 9,089.60 $ 9,316.67 $ 9,550.67 $ 9,788.13 $ 10,032.53 $ 10,283.87 $ 10,542.13 Yearly $ 94,058 $ 96,408 $ 98,821 $ 101,296 $ 103,813 $ 106,413 $ 109,075 $ 111,800 $ 114,608 $ 117,458 $ 120,390 $ 123,406 $ 126,506 PC 32 Hourly $ 47.48 $ 48.67 $ 49.88 $ 51.13 $ 52.41 $ 53.72 $ 55.06 $ 56.44 $ 57.85 $ 59.30 $ 60.78 $ 62.30 $ 63.86 Monthly $ 8,229.87 $ 8,436.13 $ 8,645.87 $ 8,862.53 $ 9,084.40 $ 9,311.47 $ 9,543.73 $ 9,782.93 $ 10,027.33 $ 10,278.67 $ 10,535.20 $ 10,798.67 $ 11,069.07 Yearly $ 98,758 $ 101,234 $ 103,750 $ 106,350 $ 109,013 $ 111,738 $ 114,525 $ 117,395 $ 120,328 $ 123,344 $ 126,422 $ 129,584 $ 132,829 PC 33 Hourly $ 49.85 $ 51.10 $ 52.38 $ 53.69 $ 55.03 $ 56.41 $ 57.82 $ 59.26 $ 60.74 $ 62.26 $ 63.82 $ 65.41 $ 67.05 Monthly $ 8,640.67 $ 8,857.33 $ 9,079.20 $ 9,306.27 $ 9,538.53 $ 9,777.73 $ 10,022.13 $ 10,271.73 $ 10,528.27 $ 10,791.73 $ 11,062.13 $ 11,337.73 $ 11,622.00 Yearly $ 103,688 $ 106,288 $ 108,950 $ 111,675 $ 114,462 $ 117,333 $ 120,266 $ 123,261 $ 126,339 $ 129,501 $ 132,746 $ 136,053 $ 139,464 PC 34 Hourly $ 52.35 $ 53.66 $ 55.00 $ 56.37 $ 57.78 $ 59.23 $ 60.71 $ 62.22 $ 63.78 $ 65.37 $ 67.01 $ 68.68 $ 70.40 Monthly $ 9,074.00 $ 9,301.07 $ 9,533.33 $ 9,770.80 $ 10,015.20 $ 10,266.53 $ 10,523.07 $ 10,784.80 $ 11,055.20 $ 11,330.80 $ 11,615.07 $ 11,904.53 $ 12,202.67 Yearly $ 108,888 $ 111,613 $ 114,400 $ 117,250 $ 120,182 $ 123,198 $ 126,277 $ 129,418 $ 132,662 $ 135,970 $ 139,381 $ 142,854 $ 146,432 In the event of a keying/formula discrepancy,all pay plans(salary matrices)are calculated at 2.5%between each step and 5.0%between each range. ITEM NO. 8.3 AGENDA REPORT Meeting Date: November 14, 2017 To:Board of Directors From:Andrew B. Gagen, General Counsel Subject:Publication of General Counsel's Opinion Letter Regarding MWDOC Memorandum STAFF RECOMMENDATION: That the Board of Directors direct staff to publish General Counsel’s opinion letter and attached memorandum prepared by MWDOC’s legal counsel regarding the Assistant General Manager’s employment with YLWD and concurrent service on MWDOC and Met Boards of Directors. DISCUSSION: This past summer the District offered its Assistant General Manager position to Mr. Brett Barbre. At that time, Mr. Barbre served, and currently serves, both as an elected board member for the Municipal Water District of Orange County (MWDOC) and as an appointed board member for the Metropolitan Water District of Southern California (Met). The District is a member agency of MWDOC and MWDOC is a member agency of Met. Legal counsel for MWDOC prepared a memorandum regarding Conflicts of Interest and Ethical Issues with Outside Employment of Board Members (“MWDOC Memo”) in regards to Mr. Barbre’s potential employment at the District. The MWDOC Memo has since been published on the MWDOC website. District General Counsel prepared a letter to the District’s General Manager and Board of Directors in which General Counsel expressed its opinions regarding the MWDOC Memo. Publication of this letter will require the District to waive the attorney-client privilege attached to this letter. General Counsel and General Manager Marcantonio do not oppose waiving the privilege. ITEM NO. 8.4 AGENDA REPORT Meeting Date: November 14, 2017 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Brett R. Barbre, Asst General Manager Prepared By:Brett R. Barbre, Asst General Manager Subject:Election for Association of California Water Agencies (ACWA) President, Vice President and Bylaw Amendments STAFF RECOMMENDATION: That the Board of Directors review the candidates and proposed bylaw amendments and authorize President Miller or his designee to cast the District’s ballot for the ACWA President, Vice President, and bylaws update at ACWA’s Fall Conference on November 29, 2017. DISCUSSION: On November 29, during ACWA’s Fall Conference, there will be a General Membership meeting in the Platinum Ballroom 1-6, Marriott Anaheim, at 1:20 p.m. The purpose of the meeting is to formally nominate and elect ACWA’s President and Vice President for the 2018-2019 term and to conduct a vote by the membership on proposed amendments to ACWA’s Bylaws as recommended by the Board of Directors at its meeting on September 29, 2017. The ACWA Nominating Committee has announced a 2018-2019 slate that recommends current Vice President Brent Hastey (Director, Yuba County Water Agency) for ACWA President and current Federal Affairs Committee Chair Steven LaMar (Director, Irvine Ranch Water District) for ACWA Vice President. As provided by ACWA’s Bylaws nominations from the floor will be accepted prior to the vote. Such nominations and seconds must be supported by a resolution of the governing body of the member agency making and seconding such nomination. As part of the ongoing efforts to ensure ACWA’s Bylaws are current and reflect consistency with other governance documents and daily operations, the Board of Directors is recommending several amendments to the bylaws for consideration by the membership. Below is brief description of each recommended change along with ACWA staff recommendation. The proposed bylaws have also been reviewed by the Legal Affairs Committee working group. The full amendments and language can be found in the attachments: General Session Notification Memo and in the redlined version of ACWA’s bylaws. Article 7 – Standing Committees Each limited standing committee shall have a membership composition that is comprised of members in the quantity and with qualifications as defined by the provisions of these bylaws. Staff is recommending this amendment to the bylaws to allow the President flexibility in appointing members to limited standing committees and to provide an odd number committee composition total. Committee Composition Terms in Sections 5 through 17. The use of the term “individual” versus “representative” (and one instance of “member”) was inconsistent throughout the committee composition description for each of the standing committees in Article 7. Staff revised the terms in the committee section descriptions (Sections 5 through 17) to “member” for consistency and the surrounding language where needed in response to the LAC Workgroup’s analysis. (See attached bylaws for proposed amendments to these sections.) Section 5. Agriculture Committee There shall be an Agriculture Committee whose duty it shall be to recommend Association policy, positions and programs to the Board of Directors, State Legislative Committee, Federal Affairs Committee or other committees, as appropriate, regarding agricultural issues affecting the interests of ACWA and its members. The committee shall consist of at least one member from each region. This would be a new committee. The proposal is supported by staff and the ACWA Board. Section 12. Legal Affairs Committee The committee shall be composed of between 34 and 44 attorneys, each of whom shall be a member of the California Bar and shall be, or act as, counsel for a member of the agency, representing diverse interests within the Association, including but not limited to, different geographical areas throughout the state, large and small agencies, agricultural and urban agencies, agencies created under the various enabling statutes, etc. The committee shall consist of a least one member from each region. Rationale: Change the committee composition range so there is a resulting odd number total when the chair is added. Article 9 – Meeting of Members, Section 8. Amendments, Revisions, and Resolutions. Current bylaws require that before any amendments or revisions to the bylaws, or resolutions, may be considered at any meeting of the Association, any such amendment, revision, or resolution shall be submitted to the executive director/secretary at least 30 days prior to the first day of such meeting. Rationale: Staff recommended that the deadline for submitting requests for amendments, revisions, and resolutions be changed from 30 to 120 days prior to any membership meeting to provide the Legal Affairs Committee sufficient time to review and develop the required analysis and for staff to provide adequate notice to the members as set forth in Article 9, Sections 3 and 4 of the bylaws. Note: Staff typically notifies ACWA members at least 45 days prior to a given membership meeting to allow the member agency boards adequate time to designate their authorized voting representative. The Board of Directors recommends adoption of the proposed amendments to ACWA’s Bylaws through a vote of the membership. ATTACHMENTS: Name:Description:Type: ACWA_Bylaws.pdf ACWA Bylaws Backup Material ACWA_Proxy_Form.pdf ACWA Proxy Form Backup Material ACWA_Voting_Information.pdf ACWA Voting Information Backup Material ACWA_Voting_Procedures.pdf ACWA Voting Procedures Backup Material Brent_Hastey_BIO.pdf Brent Hastey Bio Backup Material Steven_LaMar_BIO.pdf Steven LaMar Bio Backup Material BYLAWS of the Association of California Water Agencies Proposed Amendments – redline version: September 29, 2017 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES TABLE OF CONTENTS Article 1 – General .............................................................................................................. 1 Article 2 – Membership and Dues ...................................................................................... 2 Article 3 – Officers ............................................................................................................... 3 Article 4 – Board of Directors .............................................................................................. 4 Article 5 – Regions .............................................................................................................. 7 Article 6 – Executive Committee ......................................................................................... 8 Article 7 – Standing Committees ...................................................................................... 10 Article 8 – Special Councils, Committees, and Task Forces .............................................. 14 Article 9 – Meetings of Members ..................................................................................... 14 Article 10 –Indemnification of Directors, Officers, and Other Agents .............................. 17 Article 11 – Miscellaneous ................................................................................................ 17 BYLAWS OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES (As amended by the Members on December 2, 2015) A RTICLE 1 – GENERAL Section 1. Name. The name of this California nonprofit corporation shall be the Association of California Water Agencies (hereinafter referred to as the Association). Section 2. Principal Office. The principal office for the transaction of business of the Association is located at 910 K Street, Suite 100, Sacramento, California; provided, however, that the Board of Directors may change the location of the principal office by resolution and without amendment of these bylaws. Section 3. Purposes. The purposes of the Association shall be to work together with its members and others for the best interests of California and its citizens and landowners who use, need and depend upon water; to encourage the orderly development of the waters of the state; to seek means of obtaining and making available to all of California a dependable water supply of the best possible quality at the lowest possible cost, giving due consideration to environmental factors involved therein; to provide inspiration and leadership in meeting and solving the water supply problems of this state; to propose and advocate such policies and measures—local, state and federal—that serve the best interests of the Association, opposing those of contrary nature; to assist in promoting the health, safety and welfare of the employees of its members; and to do all other things that are in the best interests of its members. ARTICLE 2 – MEMBERSHIP AND DUES Section 1. Membership. A. Members. Only a public district, public agency, or public organization created and operated for the purpose of controlling, treating, developing, acquiring, using or supplying water for any purpose for inhabitants or lands within the state of California, or for the protection, drainage or reclamation of lands within the state of California, may become a member of the Association. Such an entity will become a member upon written application, approval by the Board of Directors, and the payment of the required dues. Acceptance to membership shall authorize full participation in Association activities. Except as otherwise provided in subsection (B) below, in no case may an organization other than a state, a political subdivision (as defined in § 1.103-1(b) of the Income Tax Regulations) of a state or an entity the income of which is excluded from gross income under § 115 of the Internal Revenue Code be a member of the Association. B. Honorary Life Members. Any person who has rendered conspicuous service in furthering the purposes of the Association may, by vote of the Board of Directors, be granted an honorary life membership in the Association without payment of dues or assessments. All past presidents of the Association shall automatically be honorary life members without vote of the Board of Directors. Honorary life members shall not be entitled to a vote or to hold office automatically because of their status as honorary life members. C. Termination of Members. Membership shall cease upon the failure of any member to pay the dues provided for in Section 2 of this Article. The membership of any member may be terminated at any time by such member sending written notification of its intention to withdraw to the Association’s principal office. The Board of Directors may terminate the membership of any member upon 30 days’ written notice by first-class mail when it is determined at any regular Board meeting or at any special Board meeting called for that purpose that continuance of such membership would not be in the best interests of the Association. Withdrawal or termination of membership ends any participation in Association activities and shall terminate a member’s interest in the Association’s assets. Section 2. Dues. The annual dues of each member of the Association shall be established by the Board of Directors; provided, however, that any member may apply for a change in its dues because of conditions that differentiate such applicant from other members. Section 3. Liability of Members. No member shall be liable for any obligation incurred by the Association with the following exception: (1) the payment of the annual dues while it remains a member; and (2) the payment of emergency assessments, which shall not exceed 10 percent of current annual dues for each member in any calendar year while it remains a member. No emergency assessment may be levied against any member during its first two years of membership in the Association. ARTICLE 3 – OFFICERS Section 1. President and Vice President. A. General. The president and vice president of the Association shall be the elected officers of the Association. At the time of their election the president and vice president shall each be an elected or appointed member of the governing body or commission (as appropriate) of a member agency of the Association. The president and vice president shall be elected by the members of the Association at its fall conference in each odd-numbered year, shall take office on January 1 of the calendar year following election, and shall hold office until such time as their successors take office or are appointed. An elected president shall not be permitted to succeed himself/herself to that office. Except as provided in this Article, should vacancies occur in either office of the president or vice president, the Board of Directors shall appoint persons to fill such offices for the unexpired terms thereof. B. President. The president shall preside at all meetings of the Board of Directors, the Executive Committee, and the general membership; shall appoint members of all committees, including the chair and vice chair of each, upon recommendation from members and regions (as communicated by the region chairs), with each such committee chair and vice chair ratified by the Board of Directors; and shall perform all other duties necessary to carry out the functions of the office. The president shall be a non-voting ex officio member of each committee, but shall not be an ex officio member of the Nominating Committee or the region boards. The president may be expelled from office with or without cause, upon the satisfaction of the following two events: (1) a two-thirds vote of the Board of Directors; and (2) a subsequent simple majority vote of the members of the Association during a meeting of the membership. C. Vice President. The vice president shall, in the absence of the president, assume all of the duties of that office and, if a vacancy occurs, succeed thereto for the unexpired term. The vice president shall sit as a member of the Executive Committee of the ACWA Joint Powers Insurance Authority and shall perform such other duties as assigned by the president. Section 2. Executive Director/Secretary and Controller/Treasurer. A. General. The executive director/secretary and controller/treasurer of the Association shall also be officers of the Association. The executive director/secretary shall be appointed by and hold office at the pleasure of the Board of Directors of the Association. B. Executive Director/Secretary. The executive director/secretary shall: (1) advise and assist the Board of Directors, all committees, the boards of each region, and the workgroups of each region; (2) be responsible for administering the total operations of the Association; (3) employ, direct, and release all employed staff in accordance with the policies adopted by the Board of Directors and consistent with the budget adopted by the Board of Directors; (4) provide relevant information to the Board of Directors needed by the Board to take actions; (5) give members notice and record minutes of all meetings of the membership, Board of Directors, and Executive Committee; and (6) have such other powers and perform such other duties as may be provided and assigned by the Board of Directors directly or through the president of the Board or the Executive Committee. The executive director/secretary, with the assistance of the controller/treasurer, shall render a report to the Board of Directors at the first meeting following the close of each calendar year showing the membership of the Association, the receipts and expenditures during the year, and the work accomplished during the previous year. C. Controller/Treasurer. The controller/treasurer shall report to and act under the direction of the executive director/secretary. The controller/treasurer shall be a signatory on all accounts held by the Association and shall act as a fiduciary for all assets of the Association. ARTICLE 4 – B OARD OF DIRECTORS Section 1. Membership. The Board of Directors shall consist of: A. The Association president and vice president. B. The chair and vice chair of each region. C. The chair of each standing committee. D. The most immediate active past president. E. The vice president of the ACWA/Joint Powers Insurance Authority. Section 2. Term of Office. The term of office of all members of the Board of Directors shall commence on January 1 of the calendar year following election of the president and vice president, except for those persons who serve on the Board of Directors by nature of their position as chairs of standing committees, whose terms shall instead commence upon their ratification by the Board of Directors. Except as provided in Article 4, Section 11, the term of office for all members of the Board of Directors shall terminate on December 31 of the following odd-numbered year two years later, or until their successors take office. Section 3. Attendance Requirement. Any member of the Board of Directors who misses two consecutive regular Board meetings without being excused by the Board will no longer be a member of the Board of Directors. Section 4. Regular Meetings. Regular meetings of the Board of Directors shall be held bimonthly at such times and places as the Board may determine. Section 5. Special Meetings. Special meetings may be called by the president upon the president’s own volition or shall be called by the president when requested in writing by five directors. Prior to conducting such a special meeting, the president shall consult with the Executive Committee to ensure that adequate information is available to the Board of Directors for any necessary decisions; and where such meeting is called upon the president’s own volition, the president shall also consult with the Executive Committee as to the necessity of the special meeting. Notice for special meetings shall be provided in the following manner: (1) upon 10 days’ written notice sent by mail to each director and addressed to each at the address as shown upon the records of the Association; or (2) upon 48 hours’ notice with notice provided by electronic means. When the meeting is called upon the president’s own volition, the president shall choose the form of notice; when the meeting is called by a request of five directors, the five directors shall choose the form of notice and the president shall promptly call the meeting. No business except those items described in the notice shall be transacted at any special meeting, except by consent of three-fourths of the members of the Board of Directors present. Section 6. Meeting Requirements and Quorums. Any meeting, regular or special, may be held in person or by telephone conference, web video conference, or other electronic video screen communication or electronic transmission. At any meeting of the Board of Directors, the attendance of 50 percent of the voting members of the Board of Directors, or their permitted alternates as specified in these bylaws, shall constitute a quorum for the transaction of any business. The Board may hold a closed session for discussion of personnel matters or enforcement of violations of the code of conduct. Section 7. Alternates. Each region shall designate an alternate for each chair and vice chair, who shall meet the qualification requirements for chair and vice chair, to act at meetings of the Board of Directors when the chair or vice chair is unable to attend. The vice chair of each standing committee will be the alternate to act at meetings of the Board of Directors when the chair is unable to attend. An alternate may not act or vote on behalf of more than one member of the Board of Directors. A member of the Board of Directors may not act as an alternate for any other member. Section 8. Vacancies for Standing Committee Chairs and Vice Chairs. Should a vacancy occur in the office of any standing committee chair or vice chair before the end of the term, the president shall appoint a new committee chair or vice chair to fulfill the unexpired term of such committee chair or vice chair subject to ratification by the Board of Directors. A vacancy in the office of any such standing committee chair or vice chair as described in the previous sentence shall be deemed to exist when the chair or vice chair: (1) resigns the office; (2) no longer is an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member agency of the Association to represent that member; or (3) is otherwise removed by a member agency of the Association. Section 9. Duties, Authorities, and Delegation. Subject to the provisions and limitations of California Nonprofit Corporation Law, other applicable laws, and the provisions of these bylaws, the Association’s activities and affairs are to be exercised by or under the direction of the Association’s Board of Directors. The Board of Directors is responsible for the overall supervision, control, and direction of the Association. The Board of Directors shall: (1) employ and release the executive director/secretary; (2) set performance expectations for the executive director/secretary; (3) receive, review, and consider approval of executive director/secretary recommended compensation, other terms and conditions of employment, and annual evaluations as prepared by the Executive Committee; (4) annually adopt a budget; and (5) set the level of dues for the Association. Except as to the duties listed in the previous sentence, and subject to Article 3, Section 2, the Board of Directors may delegate the supervision, control, and direction of the Association’s affairs to any person or group, including a committee, provided the Association Board retains ultimate responsibility for the actions of such person or group. Where such powers are delegated, the delegation shall be documented in writing. Section 10. Immediate Past President. The immediate past president automatically assumes this position after serving as the Association’s elected president and is a voting member of the Board of Directors and Executive Committee. The term of office for the immediate past president shall commence on January 1 of the calendar year following election of the president and vice president and shall terminate on December 31 of the following odd-numbered year two years later. In the event the most immediate active past president is unavailable to serve, the most recent and available active past president in succession shall serve in this capacity. Section 11. Code of Conduct of Board Members. A. Code of Conduct: Purpose and Adoption. The Board of Directors shall establish, and update as appropriate, a code of conduct for its Directors that recognizes the Association’s commitment of integrity, respect, and fair representation to its members and the public they serve and establishes minimum ethical standards for the performance of the duties of office. The code shall be consistent with the procedural processes contained in this section. The code shall be distributed to all new Directors and shall be distributed annually to all members of the Association. B. Violations and Enforcement Process. A violation of the code of conduct may result in removal, public censure, or private reprimand of a Director, or such other action as contained in the code of conduct. However, removal and public censure shall be reserved only for serious violations. A Director may not be removed or publically censured absent an affirmative vote of two-thirds of the voting members of the Board of Directors. A Director may be privately reprimanded for a violation of the code of conduct upon the majority vote of the quorum. Complaints of violation of the code of conduct may be filed with the president, or the vice-president if the allegations are made against the president. The president may refer a complaint of violation to the executive director/secretary for investigation. The executive director/secretary may retain a special investigator or special counsel to conduct or assist the investigation. A Director accused of a violation shall be provided a copy of the complaint. A Director that takes any hostile or retaliatory action, directly or indirectly, against a complainant is subject to removal from the Board in conformance with the process identified above. Prior to scheduling a Board action on a complaint, the president shall consult with the Executive Committee and the chair of the Legal Affairs Committee. A Director accused of a violation of the code of conduct shall be provided at least 15 days’ written notice of any meeting of the Board at which a determination of enforcement will be considered. A determination of enforcement may be made only at a regular meeting of the Board and shall be made in closed session. The determinations of the Board under this section shall not be admissible in any criminal or civil proceeding brought against the Director for conduct that violates any other law. A RTICLE 5 – REGIONS Section 1. Boundaries of Each Region. A. There shall be a maximum of 10 regions within the state. The Board of Directors shall determine the regional boundaries. Insofar as is practicable, the regions shall have a numerical balance in members of the Association; make geographic sense; and promote regional problem solving. B. A member of the Association may file a written petition to the Board of Directors requesting a change in regions. Such petition shall set forth the reasons for such requested change. The Board shall, within a reasonable time, act upon such petition and set forth the reasons for its action. Such action by the Board shall be based on factors in (A) above, as well as others deemed by the Board of Directors to be relevant to the decision. Section 2. Officers. A. The officers of each region shall be a chair and vice chair and three to five region board members who shall be elected by the region by September 30, or the preceding Friday if September 30 falls on a weekend, of odd-numbered years. A region may maintain a board of fewer than five but not less than three members as provided in the region’s rules and regulations. The officers of the region board shall take office on January 1 of the calendar year following election and shall hold office for two years, or until their successors take office. Regions shall hold elections by electronic ballot. ACWA staff shall verify the legitimacy of the ballots. B. The officers of each region shall: (1) exercise the powers and perform duties of the region during the interim between region meetings; and (2) make recommendations to the president regarding appointments to committees. The chair and vice chair shall be the region’s representatives to the ACWA Board of Directors. C. Each officer of a region shall be an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member agency of the Association to represent that member at the time of the appointment. Where an individual ceases to meet these criteria during the term of the office, the individual may not serve during the remaining term of that office unless that individual can again meet the criteria for the office and is appointed to complete the term. The region board may adopt more stringent criteria for board member qualifications as part of the region’s rules and regulations. D. Should a vacancy occur in any of the region board positions before the end of the term, the remaining members of the region board shall appoint a new member. A vacancy in the office of any region board position shall be deemed to exist when a region board member: (1) resigns the office; (2) no longer is an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member of the Association to represent that member; or (3) is otherwise removed by a member agency of the Association. Section 3. Nominating Committees. There shall be a nominating committee for each region consisting of three or more designees, each representing a member of the Association located within the region, appointed by the chair of the region and approved by the region board. Nominating committees shall be formed by February 28 of each odd-numbered year. The nominating committee shall announce its nominations for chair, vice chair, and region board members by August 1 of an election year. All regions must complete the election process by September 30 of the election year, or the preceding Friday if the September 30 falls on a weekend. Section 4. Meetings. The meetings of each region shall be held at both the spring and fall conferences and at such other times and places as may be determined by the region chair. Representatives of five or more members of the Association from the region present at any region meeting shall constitute a quorum for purposes of conducting the business of the region. Any meeting, regular or special, may be held in person or by telephone conference, web video conference, or other electronic video screen communication or electronic transmission. Section 5. Workgroups. Workgroups may be appointed by the region chair as needed. Section 6. Rules. Each region shall organize and adopt rules and regulations for the conduct of its meetings and affairs not inconsistent with the Articles of Incorporation or bylaws of the Association. Each region shall abide by the code of conduct adopted by the Board of Directors of the Association. ARTICLE 6 – EXECUTIVE COMMITTEE Section 1. Membership. There shall be an Executive Committee consisting of the following: the president of the Association, who shall be the chair thereof; the vice president; the most immediate active past president; the chair of the Finance Committee; and three at-large representatives selected from and by the members of the Board of Directors. The election of the three at-large representatives to the Executive Committee shall occur at the first Board of Directors meeting held in each even-numbered year and the elected representatives shall serve immediately following their election and until such time as their successors take office. To the extent practical, the Executive Committee should be constituted so as to reflect the geographic extent of the Association and the functions of the members of the Association. Section 2. Powers. The Executive Committee shall have the following authority: A. Personnel. Subject to the budget adopted by the Board of Directors, the Executive Committee shall perform the following personnel actions: (1) recommend compensation for the executive director/secretary to the Board of Directors for approval; (2) perform annual reviews of the executive director/secretary and submit that review to the Board of Directors; (3) review and approve the classification and compensation plan and publicly posted salary schedule for Association employees submitted by the executive director/secretary, which shall be reviewable by the Board of Directors, in closed session, upon request of the Board of Directors; (4) establish personnel policies for the conduct and behavior of employees, which shall be reviewable by the Board of Directors; and (5) undertake such other personnel actions as may be requested by the executive director/secretary in support of his or her oversight of all other personnel matters, which shall be reviewable by the Board of Directors, in closed session, upon request of the Board of Directors. B. Delegation. The Executive Committee may act pursuant to any authority specifically delegated to it by the Board of Directors. The delegation shall indicate whether the authority is still subject to the ultimate authority of the Board. C. Authority to Act Between Meetings. The Executive Committee may act for the Board of Directors between Board meetings when calling a special meeting of the Board of Directors is impracticable, provided that no such action of the Executive Committee shall be binding on the Board of Directors until authorized or approved by the Board. The Executive Committee has the authority to authorize actions recommended by the Legal Affairs Committee (such as the filing of letter briefs and amicus curiae briefs) by electronic means without the need for an in-person or telephonic meeting, but such actions shall be ratified by the Board of Directors at its next meeting. Section 3. Reporting. The president, or any person designated by the president, shall report to the Board of Directors, at each regular Board meeting, any action taken by the Executive Committee since the last preceding regular Board meeting. The minutes of Executive Committee meetings, which at that time may still be in draft form, shall be mailed (using the U.S. Postal Service, express delivery, electronic means, or otherwise) to each member of the Board of Directors at least five days prior to Board meetings, except in cases in which the Executive Committee meets during or immediately prior to a conference of the Association or immediately prior to a Board meeting, in which case the minutes, which may still be in draft form, shall be mailed to each director promptly thereafter. Section 4. Meetings. The Executive Committee shall hold regularly scheduled meetings as set by the president. Special meetings of the Executive Committee may be called by the president upon notice to the members of that committee or upon written request of three Executive Committee members. Notice for special Executive Committee meetings shall be provided to the entire Board: (1) upon five days’ written notice sent by mail, or (2) upon 24 hours’ notice with notice provided by electronic means; and all such meetings shall be open to the Board of Directors. Any meeting, regular or special, may be held in person or by telephone conference, web video conference or other electronic video screen communication or electronic transmission. All members of the Board of Directors may attend any meeting of the Executive Committee. Meetings of the Executive Committee may be closed to others at the discretion of the President or committee. Only members of the Executive Committee are allowed to vote on matters at a meeting of the committee. Section 5. Minutes. The minutes of the Executive Committee meetings shall be kept by the executive director/secretary at the Association’s principal office. Actions of the Executive Committee shall be reported to the Board of Directors as provided in Section 3 of this Article and shall be available to any member of the Board of Directors upon request to the executive director/secretary. ARTICLE 7 – STANDING COMMITTEES Section 1. Qualification. In order to serve on any ACWA standing committee, an individual must be an officer, employee, or member of the governing body of a member agency of the Association, or other representative duly designated by a member agency of the Association to represent that member at the time of the appointment. Where an individual ceases to meet these criteria during the term of the appointment, the individual may not serve during the remaining term of that appointment unless that individual can again meet the criteria for appointment and is appointed to complete the term. Section 2. Term of Office. The term of office of standing committee members shall be two years commencing on January 1 of each even-numbered year. The term of office of standing committee chairs and vice chairs shall be approximately two years and shall commence as soon after January 1 of the even-numbered year as they may be appointed by the president and ratified by the then-seated Board of Directors, and shall terminate on December 31 of the odd-numbered year approximately two years later or until their successors are appointed and ratified. Section 3. Meetings. Meetings of standing committees may be called at such times and places designated by the respective chair thereof except where provided otherwise by these bylaws. Subject to the provisions of these bylaws and any actions that may be taken by the Board of Directors, the chairs of each standing committee may establish their own rules for the efficient operation of the committee they each chair. The chairs of each standing committee are authorized to create subcommittees and workgroups in order to complete the work of the committee. Section 4. Committee Composition. Each limited standing committee shall have a membership composition that is comprised of members in the quantity and with qualifications as defined by the provisions of these bylaws. The committee chair position shall not be included in the maximum count for determining the committee composition total of any given limited committee. The committee chair shall, however, be a voting member of their respective committees subject to the rules and procedures of each committee. Rationale: Staff is recommending this amendment to the Bylaws to allow the President flexibility in appointing members to limited standing committees and to provide an odd number committee composition total. LAC Workgroup Analysis: The proposed revision is clear and meets its intended purpose. Committee Composition Terms in Sections 5 through 17. Rationale: Review of Committee Composition Terms: Staff noted that the use of the term “individual” versus “representative” (and one instance of “member”) was inconsistent throughout the committee composition description for each of the standing committees in Article 7. Staff asked the LAC Workgroup to review Section 1, Qualifications, as well as each of the committee descriptions to make a determination as to which term would best apply for all of the committees for purposes of consistency throughout Article 7. LAC Workgroup Analysis: Reading of the various ACWA committee sections suggests that “Member” would be the most appropriate word for consistency throughout the By-Laws. However, the use of a single term, may require some minor revisions to surrounding text for clarity (for an example see Section 15 (State Legislative Committee) where “member” is separately used to denote a “member agency” and so would need to state “member-agency” consistently to accommodate the more general use of “member” throughout the By-Laws). Staff Response: Staff revised the terms in the committee sections to “member” for consistency and the surrounding language where needed in response to the LAC Workgroup’s analysis. Section 5. Agriculture Committee. There shall be an Agriculture Committee whose duty it shall be to recommend Association policy, positions and programs to the Board of Directors, State Legislative Committee, Federal Affairs Committee or other committees, as appropriate, regarding agricultural issues affecting the interests of ACWA and its members. The committee shall consist of at least one member from each region. Rationale: The 2016-2017 Business and Strategic Plan initiative to increase involvement and engagement from ACWA’s agricultural members has successfully generated momentum amongst ACWA’s agricultural members and a renewed attention to and involvement in key policy issues that uniquely affect agricultural water suppliers. Amidst this success, a concern has arisen that the momentum could be lost once the Board of Directors finishes its current term and the initiative sunsets. This concern has sparked the suggestion that ACWA should consider creating an Agriculture Committee as the thirteenth standing committee of the Association to continue the objectives of the Ag Initiative long-term. LAC Workgroup Analysis: The proposed revision is clean and meets its intended purpose. Section 4 6. Business Development Committee. There shall be a Business Development Committee whose duty it is to develop and recommend to the Board of Directors programs and activities to be provided or administered by the Association that generate non-dues revenue and provide a service or benefit to Association membersmember agencies. The committee shall consist of at least one representative member from each region and one representativemay include members from the any of the other standing committees. Section 5 7. Communications Committee. There shall be a Communications Committee whose duty it shall be to develop and make recommendations to the Board of Directors regarding a comprehensive internal and external communications program for the Association and to promote development of sound public information and education programs and practices among members of the Association agencies. The committee shall consist of no more than 40 individualsmembers. Of that number,The committee shall consist of at least one individual member shall be from each region. Section 6 8. Energy Committee. There shall be an Energy Committee whose duty it shall be to recommend policies and programs to the Board of Directors and to the State Legislative Committee and/or Federal Affairs Committee as appropriate. The committee shall consist of at least one representative member from each region. Section 7 9. Federal Affairs Committee. There shall be a Federal Affairs Committee whose duty it shall be to review all federal legislative proposals and regulatory proposals affecting members of the Associationmember agencies, after consulting with other appropriate committees, and to develop Association positions consistent with existing policy, where it has been established; recommend sponsorship of bills that will resolve problems or improve conditions for members of the Association agencies; and assist in the establishment of the Association’s federal legislative program. The committee shall consist of at least one and, but no more than five individuals members from each region. Section 8 10. Finance Committee. There shall be a Finance Committee whose duty it shall be to make recommendations to the Board of Directors regarding annual budgets, dues formula and schedules and other revenue-producing income, annual audit and selection of an auditor, and investment strategies. The committee shall consist of the president and vice president of the Association as ex officio members, the Finance Committee chair, one membereither the chair or vice chair from each of the Association’s of the region board from each of the Association’s 10 regions boards (either chair or vice chair), and one additional representative member from each region with experience in financial matters. Section 9 11. Groundwater Committee. There shall be a Groundwater Committee whose duty it shall be to recommend policies and programs to the Board of Directors and to the State Legislative Committee and/or Federal Affairs Committee as appropriate. The committee shall consist of at least one representative member from each region. Section 10 12. Legal Affairs Committee. There shall be a Legal Affairs Committee whose duty it shall be to support the mission of the Association, and more particularly to deal with requests for assistance involving legal matters of significance to members of the Association agencies, including but not limited to state and federal court litigation, water rights matters, selected regulatory and resources agency matters, proposed bylaw revisions, review of legislation as requested by the State Legislative Committee, etc. The committee shall consider matters and issues submitted to it in order to determine which ones are of major significance to the members of the Association agencies and, assuming a finding of major significance, recommend to the Board of Directors the position(s) which the committee believes the Association should take with respect thereto. The committee shall be composed of between 35 34 and 45 44 attorneys, each of whom shall be a member of the California Bar and shall be, or act as, counsel for a member of the Associationagency, representing diverse interests within the Association, including but not limited to, different geographical areas throughout the state, large and small agencies, agricultural and urban agencies, agencies created under the various enabling statutes, etc. Further, there shall be at least one representative from each region on the committeeThe committee shall consist of at least one member from each region. Rationale: Change the committee composition range so there is a resulting odd number total when the chair is added. LAC Workgroup Analysis: Considered together with the general change in Section 4, Committee Composition above, this change accomplishes its purposes and maintains the current overall LAC membership numbers. Section 11 13. Local Government Committee. There shall be a Local Government Committee whose duty it shall be to recommend policies to the State Legislative Committee, as appropriate, and Board of Directors on matters affecting water agencies as a segment of local government in California. The committee shall consist of at least one, and but no more than three individuals members from each region. Section 12 14. Membership Committee. There shall be a Membership Committee whose duty it shall be to assist staff in developing membership recruitment and retention programs, make recommendations to the Board of Directors regarding membership policies, eligibility, and applications for membership and review and make recommendations to the Finance Committee regarding an equitable dues structure. The committee shall consist of at least one member from each region. Section 13 15. State Legislative Committee. There shall be a State Legislative Committee whose duty it shall be to review all state legislative proposals affecting members of the Association agencies and to establish Association positions, consistent with existing policy, where it has been established; sponsor bills that will resolve problems or improve conditions for member s of the Associationagencies; and assist in the establishment of the Association’s legislative program. The committee shall consist of individuals members representing a variety of types of members member agencies and at least one and, but no more than four individuals members from each region. Section 14 16. Water Management Committee. There shall be a Water Management Committee whose duty it shall be to recommend policy and programs to the Board of Directors on any area of concern in water management. The committee shall consist of at least one, but and no more than four individuals members from each region. Section 15 17. Water Quality Committee. There shall be a Water Quality Committee whose duty it shall be to develop and recommend Association policy, positions, and programs to the Board of Directors, to promote cost-effective state and federal water quality regulations that protect the public health, to enable interested members of the Association agencies to join together to develop and coordinate with other organizations, and to present unified comments regarding agricultural and domestic water quality regulations. The committee shall consist of at least one individual member from each region. ARTICLE 8 – SPECIAL COUNCILS, COMMITTEES, AND TASK FORCES Section 1. Council of Past Presidents. There shall be a Council of Past Presidents composed of all past presidents of the Association who serve on the council until each is no longer able to or wishes to serve. The council shall provide a mechanism for past presidents to continue to make valuable contributions to the Association. With approval of the Board of Directors, the president and/or executive director/secretary may assign specific responsibilities to the council from time to time. Members of the Council of Past Presidents are invited to attend and participate in the Association’s Board meetings. Section 2. Nominating Committee. There shall be a Nominating Committee consisting of five or more persons appointed by the president prior to the Association’s fall conference in each odd-numbered year, whose purpose shall be to nominate qualified individuals for the offices of president and vice president of the Association. The Nominating Committee shall publish its nominations for the offices of president and vice president of the Association not less than 10 or more than 90 days before the membership meeting is held at fall conference. Additional nominations may be made by any member of the Association for candidates for the office of president and vice president. Additional nominations shall be made from the floor during the election of president and vice president at the membership meeting scheduled for said purposes. Section 3. Other Committees and Task Forces. Other committees and task forces may be appointed by the president from time to time as needed, consistent with and supportive of the mission of the Association. ARTICLE 9 – MEETINGS OF MEMBERS Section 1. Meetings. Meetings of the members of the Association shall be held at the Association’s conferences at such times as may be determined by the Board of Directors to conduct necessary business and to elect the president and vice president, which occurs at the fall conference in each odd- numbered year. Section 2. Special Meetings. Special meetings of the members of the Association may be called by the Board of Directors, the president of the Board of Directors, or by 5 percent or more of the members of the Association. Except when called by the Board, a request for a special meeting must be in writing and must be delivered in person or mailed by first-class mail addressed to the president of the Board at the principal office of the Association, with a copy to the executive director/secretary. The request must state the general nature of the business proposed to be transacted at the meeting. A special meeting that has been called by written request of 5 percent of the member agencies of the Association to the Board of Directors shall be set by the Board of Directors on a date that is not less than 35 or more than 90 days after receipt of the request. Section 3. Notice Requirements for Membership Meetings. Written notice of any membership meeting shall be given to each voting member of the Association. The notice shall state the date, time, and place of the meeting; the means by which members may participate; and the general nature of the business to be transacted. The notice of any meeting at which Board officers are to be formally nominated and elected shall include the names of the recommended slate of candidates for the offices of president and vice president in addition to the election procedures. The member notification information shall also be posted on the Association’s website. Except as otherwise provided in these bylaws or California law, a written notice of regular membership meetings shall be given not less than 10 or more than 90 days before the date of the meeting to each member who, on the record date for notice of the meeting, is entitled to vote; provided, however, that if notice is given by mail, and the notice is not mailed by first-class, registered, or certified mail, that notice shall be given not less than 20 days before the meeting. Section 4. Notice Requirements for Special Meetings. The executive director/secretary shall cause notice to be given to all members of the Association of the date, time, and place of the meeting and the general nature of the business to be transacted at the meeting. No business except that specified in the request and notice may be transacted at said special meeting. If notice of the requested special meeting is not given within 20 days after receipt of the request, the person or persons requesting the meeting may give the notice. Section 5. Voting. Each member of the Association shall be entitled to one vote that shall be cast by its authorized representative. All questions, except amendments or revisions of these bylaws, shall be determined by a majority of the members present and voting. A roll call may be requested by any representative. Section 6. Amendment of Bylaws. These bylaws may be amended or revised by two-thirds of the member agencies of the Association present and voting at any meeting. Section 7. Quorums. The presence of the authorized representative of 50 members of the Association at any meeting of the members shall constitute a quorum for transacting business. Section 8. Amendments, Revisions, and Resolutions. Before any amendments or revisions to the bylaws, or resolutions, may be considered at any meeting of the Association, any such amendment, revision, or resolution shall be submitted to the executive director/secretary at least 30 90 days prior to the first day of such meeting. The executive director/secretary shall promptly distribute any proposed amendments or revisions to the Legal Affairs Committee for the Legal Affairs Committee to develop an unbiased analysis of the amendments or revisions. Following development of an analysis for the proposed amendments or revisions, the executive director/secretary shall distribute copies of any resolutions, amendments or revisions, including any applicable analyses, to all members of the Association at least five not less than 10 days or more than 90 days prior to presentation at such meeting. The written notice of the membership meeting shall be given to each voting member of the Association consistent with the provisions defined in Section 3. The 30 90-day rule may be suspended at any meeting of the Association by consent of three-fourths of the members present. Voting on resolutions, amendments, or revisions shall proceed as provided by Sections 3 5 and 4 6 of this Article. Staff Rationale: Staff is recommended that the deadline for submitting requests for amendments, revisions, and resolutions be changed from 30 to 120 days prior to any membership meeting to provide Legal Affairs Committee sufficient time to review and develop the required analysis and for staff to provide adequate notice to the members as set forth in Article 9, Sections 3 and 4 of the Bylaws. Note: Staff typically notifies ACWA members at least 45 prior to a given membership meeting to allow the agency boards to designate their authorized representative. LAC Workgroup Analysis: This proposed revision is clear and meets its intended purpose. However, subcommittee members did express some concern that the 120-day submission requirement may unduly limit the Association’s ability to quickly respond to state or federal legislative or administrative acts appropriately. A supermajority of the Association may vote to suspend the requirement, however, it may be advisable to require only 90-days for submission while retaining the general Association distribution timing of no later than 10-days and no earlier than 90-days prior to presentation at an Association meeting. Staff Response: Staff revised the proposed amendment to state 90 days instead of 120 days in response to the LAC Workgroup’s analysis. Section 9. Nomination of President and Vice President. A. Qualification. At the time of their election, the president and vice president of the Association shall each be an elected or appointed member of the governing body or commission (as appropriate) of a member agency of the Association. B. Nominating Committee Process. All nominations for the positions of president and vice president shall be accompanied by an official resolution from the Association member agency on whose board the nominee serves. Said resolution shall be signed by an authorized signatory of the member agency’s Board of Directors. C. Nominations from the Floor. Additional nominations may be made by any member of the Association for the office of president and vice president. Said nominations and seconds shall be made from the floor during the election of the offices of president and vice president at the membership meeting scheduled for said purposes (as provided for in the penultimate sentence of Article 8, Section 2). Such nominations and seconds shall be made by a member of the Association and must be supported by a resolution of the governing body of the member making and seconding such nomination. The member agency on whose board the nominee serves shall submit a resolution of support if they are not the agency making the floor nomination or second. Section 10. Additional Procedures for Election of Officers. The Board shall have the authority to develop additional procedures for elections of president and vice president when not otherwise covered by these bylaws. ARTICLE 10 –INDEMNIFICATION OF DIRECTORS, OFFICERS, AND OTHER AGENTS Section 1. Right of Indemnity. To the fullest extent permitted by law, this Corporation shall indemnify its Directors, Officers, employees, and other persons described in Section 7237(a) of the California Corporations Code, including persons formerly occupying any such position, against all expenses, judgments, fines, settlements and other amounts actually and reasonably incurred by them in connection with any “proceeding,” as that term is used in that Section, and including an action by or in the right of the Corporation, by reason of the fact that the person is or was a person described in that section. "Expenses," as used in this bylaw, shall have the same meaning as in Section 7237(a) of the California Corporations Code. Section 2. Approval of Indemnity. On written request to the Board by any person seeking indemnification under Section 7237(b) or Section 7237(c) of the California Corporations Code, the Board shall promptly determine under Section 7237(e) of the California Corporations Code whether the applicable standard of conduct set forth in Section 7237(b) or Section 7237(c) has been met and, if so, the Board shall authorize indemnification. Section 3. Advancement of Expenses. To the fullest extent permitted by law and except as otherwise determined by the Board in a specific instance, expenses incurred by a person seeking indemnification under these bylaws in defending any proceeding covered by those Sections shall be advanced by the Corporation before final disposition of the proceeding, on receipt by the Corporation of an undertaking by or on behalf of that person that the advance will be repaid unless it is ultimately determined that the person is entitled to be indemnified by the Corporation for those expenses. Section 4. Insurance. The Corporation shall have the right to purchase and maintain insurance to the full extent permitted by law on behalf of its Officers, Directors, employees, and other agents, against any liability asserted against or incurred by any officer, director, employee, or agent in such capacity or arising out of the officer’s, director’s, employee’s or agent’s status as such. ARTICLE 11 – MISCELLANEOUS Section 1. Conduct of Meetings. All meetings of the Association shall be conducted in accord with the code of conduct and in substantial accordance with the latest edition of Robert’s Rules of Order Newly Revised unless the Board adopts alternate rules of conduct for itself and/or its committees, region boards, and region workgroups. Section 2. Funds. The funds of the Association shall be used to further the aims and purposes of this Association. They shall be kept by the controller/treasurer and paid out by checks or other electronic means, which shall only be valid with two authorized signatures. The Board of Directors shall designate by resolution which persons, other than the controller/treasurer, may sign for expenditures. The Finance Committee shall implement procedures to ensure necessary internal controls over the receipt and expenditures of Association funds and arrange for an external audit. Audit reports shall be presented to the Board of Directors. Section 3. Disposition of Assets upon Dissolution. The Association’s properties and assets are irrevocably dedicated to the fulfillment of the Association’s purposes as described in Article 2 of the Articles of Incorporation. No part of the Association’s net earnings, properties and assets, on dissolution or otherwise, may inure to the benefit of any private person. Upon the dissolution of the Association, all debts thereof shall be paid and its affairs settled, and all remaining assets shall be distributed to the Association’s member political subdivisions for a public purpose, consistent with the provisions of the California Nonprofit Corporation Law relating to public benefit corporations then in effect and with the Articles of Incorporation. Section 3. Definitions. As used in these bylaws, the term “notice provided by electronic means” shall refer to notice given by fax or e-mail. Amended comprehensively December 1, 2010 Amended May 9, 2012 Amended May 7, 2014 Amended December 2, 2015 PROXY DESIGNATION FORM ASSOCIATION OF CALIFORNIA WATER AGENCIES GENERAL SESSION MEMBERSHIP MEETING(S) WEDNESDAY, NOVEMBER 29, 2017 AT 1:20PM THURSDAY, NOVEMBER 30, 2017 AT 1:20PM (IF NEEDED) TO: Donna Pangborn, Clerk of the Board EMAIL: donnap@acwa.com FAX: 916-325-4857 The person designated below will be attending the ACWA General Session Membership Meeting(s) on Wednesday, November 29, 2017 (and November 30, 2017 if necessary) as our voting delegate. MEMBER AGENCY’S NAME AGENCY’S TELEPHONE No. MEMBER AGENCY’S AUTHORIZING REPRESENTATIVE SIGNATURE DELEGATE’S NAME SIGNATURE DELEGATE’S EMAIL DELEGATE’S TELEPHONE No. DELEGATE’S AFFILIATON (if different from assigning agency)1 DATE 1 If your agency designates a delegate from another entity to serve as its authorized voting representative, please indicate the delegate’s entity in the appropriate space above. Note: Delegates need to sign the proxy form indicating they have accepted the responsibility of carrying the proxy. REMINDER: Proxy cards will be available for pick up on Wednesday, November 29, between 9:00 a.m. and 12:00 p.m. at the ACWA General Session Desk in the main foyer outside of the Marquis Ballroom Center, Marriott Anaheim. The luncheon and General Session Membership Meeting will be held in the Platinum Ballroom 1-6. MEMORANDUM TO: ACWA Members: General Managers and Board Presidents CC: ACWA Board of Directors FROM: Timothy Quinn, ACWA Executive Director DATE: October 11, 2017 SUBJECT: General Session Membership Meeting at ACWA 2017 Fall Conference There will be a General Session Membership Meeting at the 2017 Fall Conference in Anaheim, California, on Wednesday, November 29. The meeting will be held in the Platinum Ballroom 1-6, Marriott Anaheim, at 1:20 p.m. The purpose of the meeting is to formally nominate and elect ACWA’s President and Vice President for the 2018-2019 term and to conduct a vote by the membership on proposed amendments to ACWA’s Bylaws as recommended by the Board of Directors at its meeting on September 29, 2017. Election of President/Vice President The ACWA Nominating Committee has announced a 2018-2019 slate that recommends current Vice President Brent Hastey for ACWA President and current Federal Affairs Committee Chair Steven LaMar for ACWA Vice President. As provided by ACWA’s Bylaws (Article 9, Section 9) nominations from the floor will be accepted prior to the vote. Such nominations and seconds must be supported by a resolu- tion of the governing body of the member agency making and seconding such nomination. (See attached for General Session/Election Procedures.) Proposed Amendments to ACWA’s Bylaws As part of the ongoing efforts to ensure ACWA’s Bylaws are current and reflect consistency with other governance documents and daily operations, the Board of Directors is recommending several amendments to the bylaws for consideration by the membership. A Legal Affairs Committee (LAC) Workgroup reviewed the proposed amendments and provided an analysis pursuant to ACWA’s Bylaws (Article 9, Section 8). Following is a list of the proposed amendments to the bylaws along with the rational for the change and the LAC Workgroup’s analysis. Article 7 – Standing Committees 1. Section 4. Committee Composition. Each limited standing committee shall have a membership composition that is comprised of members in the quantity and with qualifications as defined by the provisions of these bylaws. The committee chair position shall not be included in the maximum count for determining the committee composition total of any given limited committee. The committee chair shall, however, be a voting member of their respective committee subject to the rules and procedures of each committee. Rationale: Staff is recommending this amendment to the bylaws to allow the President flexibility in appointing members to limited standing committees and to provide an odd number committee composition total. LAC Workgroup Analysis: The proposed revision is clear and meets its intended purpose. 2. Committee Composition Terms in Sections 5 through 17. Rationale. Staff noted that the use of the term “individual” versus “representative” (and one instance of “member”) was inconsistent throughout the committee composition description for each of the standing committees in Article 7. Staff asked the LAC Workgroup to review Section 1, Qualifications, as well as each of the committee descriptions to make a determination as to which term best applies for all of the committees for purposes of consistency throughout Article 7. LAC Workgroup Analysis: Reading of the various ACWA committee sections suggests that “Member” would be the most appropriate word for consistency throughout the bylaws. However, the use of a single term, may require some minor revisions to surrounding text for clarity (for an example see Section 15 (State Legislative Committee) where “member” is separately used to denote a “member agency” and so would need to state “member-agency” consistently to accommodate the more general use of “member” throughout the bylaws). Staff Response: Staff revised the terms in the committee section descriptions (Sections 5 through 17) to “member” for consistency and the surrounding language where needed in response to the LAC Workgroup’s analysis. (See attached bylaws for proposed amendments to these sections.) 3. Section 5. Agriculture Committee. There shall be an Agriculture Committee whose duty it shall be to recommend Association policy, positions and programs to the Board of Directors, State Legislative Committee, Federal Affairs Committee or other committees, as appropriate, regarding agricultural issues affecting the interests of ACWA and its members. The committee shall consist of at least one member from each region. Rationale: The 2016-2017 Business and Strategic Plan initiative to increase involvement and engagement from ACWA’s agricultural members has successfully generated momentum amongst ACWA’s agricultural members and a renewed attention to and involvement in key policy issues that uniquely affect agricultural water suppliers. Amidst this success, a concern has arisen that the momentum could be lost once the Board of Directors finishes its current term and the initiative sunsets. This concern has sparked the suggestion that ACWA should consider creating an Agriculture Committee as the thirteenth standing committee of the Association to continue the objectives of the Ag Initiative long-term. LAC Workgroup Analysis: The proposed revision is clean and meets its intended purpose. 4. Section 12. Legal Affairs Committee. There shall be a Legal Affairs Committee whose duty it shall be to support the mission of the Association, and more particularly to deal with requests for assistance involving legal matters of significance to members of the Association agencies, including but not limited to state and federal court litigation, water rights matters, selected regulatory and resources agency matters, proposed bylaw revisions, review of legislation as requested by the State Legislative Committee, etc. The committee shall consider matters and issues submitted to it in order to determine which ones are of major significance to the members of the Association agencies and, assuming a finding of major significance, recommend to the Board of Directors the position(s) which the committee believes the Association should take with respect thereto. The committee shall be composed of between 35 34 and 45 44 attorneys, each of whom shall be a member of the California Bar and shall be, or act as, counsel for a member of the Association agency, representing diverse interests within the Association, including but not limited to, different geographical areas throughout the state, large and small agencies, agricultural and urban agencies, agencies created under the various enabling statutes, etc. Further, there shall be at least one representative from each region on the committee. The committee shall consist of a least one member from each region. Rationale: Change the committee composition range so there is a resulting odd number total when the chair is added. LAC Workgroup Analysis: Considered together with the general change in Section 4, Committee Composition, above, this change accomplishes its purposes and maintains the current overall LAC membership numbers. Article 9 – Meeting of Members 5. Section 8. Amendments, Revisions, and Resolutions. Before any amendments or revisions to the bylaws, or resolutions, may be considered at any meeting of the Association, any such amendment, revision, or resolution shall be submitted to the executive director/secretary at least 30 90 days prior to the first day of such meeting. The executive director/secretary shall promptly distribute any proposed amendments or revisions to the Legal Affairs Committee for the Legal Affairs Committee to develop an unbiased analysis of the amendments or revisions. Following development of an analysis for the proposed amendments or revisions, the executive director/secretary shall distribute copies of any resolutions, amendments or revisions, including any applicable analyses, to all members of the Association at least five not less than 10 days or more than 90 days prior to presentation at such meeting. The written notice of the membership meeting shall be given to each voting member of the Association consistent with the provisions defined in Section 3. The 30 90-day rule may be suspended at any meeting of the Association by consent of three-fourths of the members present. Voting on resolutions, amendments, or revisions shall proceed as provided by Sections 3 5 and 4 6 of this Article. Rationale: Staff recommended that the deadline for submitting requests for amendments, revisions, and resolutions be changed from 30 to 120 days prior to any membership meeting to provide the Legal Affairs Committee sufficient time to review and develop the required analysis and for staff to provide adequate notice to the members as set forth in Article 9, Sections 3 and 4 of the bylaws. Note: Staff typically notifies ACWA members at least 45 days prior to a given membership meeting to allow the member agency boards adequate time to designate their authorized voting representative. LAC Workgroup Analysis: This proposed revision is clear and meets its intended purpose. However, workgroup members did express some concern that the 120-day submission requirement may unduly limit the Association’s ability to quickly respond to state or federal legislative or administrative acts appropriately. A supermajority of the Association may vote to suspend the requirement, however, it may be advisable to require only 90-days for submission while retaining the general Association distribution timing of no later than 10-days and no earlier than 90-days prior to presentation at an Association meeting. Staff Response: Staff revised the proposed amendment to state 90 days instead of 120 days in response to the LAC Workgroup’s analysis. The Board of Directors recommends adoption of the proposed amendments to ACWA’s Bylaws through a vote of the membership. Webinar on Proposed Amendments to Bylaws ACWA staff is hosting a webinar on Tuesday, November 7, at 10:00 a.m. in advance of the membership meeting to answer any questions members may have pertaining to the proposed amendments to the bylaws. Please register for the webinar at the link listed below: Please register for Bylaws Webinar on Nov 07, 2017 10:00 AM PST at: https://attendee.gotowebinar.com/register/18153322847132675 After registering, you will receive a confirmation email containing information about joining the webinar. Membership Voting Process ACWA will issue each member agency present one proxy card for voting purposes based on the designated voting representative identified by the member agency on the proxy designation form. The designated voting representative is required to register and sign as the proxy holder to receive the proxy card. Proxy cards will only be available for pick-up on Wednesday, November 29, between 9:00 a.m. and 12:00 p.m. at the ACWA General Session Desk in the main foyer outside of the Marquis Ballroom Center, Marriott Anaheim. The luncheon and General Session Membership Meeting will be held in the Platinum Ballroom 1-6. To expedite the sign-in process at the ACWA General Session Desk, please indicate your voting delegate on the enclosed proxy designation form and return it by email (donnap@acwa.com) or fax (916-325-4857) at your earliest convenience prior to conference. If there is a last minute change of delegate, please let us know before the meeting date by contacting ACWA’s Clerk of the Board, Donna Pangborn, at 916-441-4545 or donnap@acwa.com. If you have any questions regarding this process, please contact Clerk of the Board Donna Pangborn at the ACWA office at 916-441-4545 or donnap@acwa.com. dgp Enclosures: 1. General Session/Election Procedures 2. Proposed ACWA Bylaws Amendments – Redline Version 3. Proxy Designation Form  next page GENERAL SESSION/ELECTION PROCEDURES FOR ACWA 2017 FALL CONFERENCE The following information is provided to inform the ACWA member agency delegates attending the 2017 Fall Conference of the procedures to be used pertaining to the nomination and election of ACWA officers and the vote by the membership on proposed amendments to the bylaws during the General Session Membership Meeting. PROXY CARDS – (REQUIRED FOR VOTING) ACWA will issue each member agency present one proxy card for voting purposes based on the designated voting representative identified by the member agency. In order to vote during the General Session Membership Meeting, the designated voting representative is required to register and sign as the proxy holder by 12:00 p.m. on Wednesday, November 29. Upon registration and sign-in, the voting delegate will receive the required proxy cards. Proxy cards will be available for pick-up on Wednesday, November 29, between 9:00 a.m. and 12:00 p.m. at the ACWA General Session Desk in the main foyer outside of the Marquis Ballroom Center, Marriott Anaheim. The luncheon and General Session Membership Meeting will be held in the Platinum Ballroom 1-6. GENERAL SESSION MEMBERSHIP MEETING, WEDNESDAY, NOV. 29 (DOORS OPEN AT 1:05 P.M.) 1. The General Session Membership Meeting will be called to order at 1:20 p.m. and a quorum will be determined. The presence of 50 authorized voting representatives is required to establish a quorum for transacting business. 2. Legal Affairs Committee Chair Jeni Buckman will provide an overview of the agenda and election procedures. 3. Nominating Committee Chair John Coleman will present the committee’s report and announce the candidate for ACWA President. 4. President Kathy Tiegs will call for floor nominations for ACWA President. 5. If there are no floor nominations for President, the election will proceed. President Tiegs will close the nominations and delegates will vote by holding up their “Yes” or “No” proxy voting cards. 6. If there are floor nominations for President, the nomination will follow the procedures established by Article 9 of ACWA’s Bylaws, stating floor nominations and seconds must be supported by a resolution of the governing body of the member agency making and seconding such nomination. Note: If there are floor nominations, the election of officers will proceed during Wednesday’s General Session as outlined below and the proposed bylaws amendments will move to the Thursday General Session Membership Meeting as outlined in item 12 below. a. Ballots will be distributed to the voting delegates. b. Delegates will complete their ballots and place them in the ballot box, which will be centrally located in the Platinum Ballroom 1-6 meeting room. c. Tellers’ Committee will count the ballots. President Tiegs has appointed the following staff members to serve as the Tellers’ Committee: Clerk of the Board Donna Pangborn; Director, Business Development & Events Paula Currie; and Executive Assistant Lili Vogelsang. d. Legal Affairs Committee Chair Jeni Buckman will serve as the proctor to oversee the ballot counting process. e. Candidates are welcome to designate an observer to be present during the ballot counting process. f. Results of the ballot count will be announced. Election of ACWA’s officers will be determined by a majority of the members present and voting. If any one candidate does not receive a majority of the vote, successive ballot counts will be conducted until a candidate is elected, consistent with Robert’s Rules of Order. Rev: 9/26/17 7. Nominating Committee Chair John Coleman will announce the candidate for ACWA Vice President. 8. President Kathy Tiegs will call for floor nominations for ACWA Vice President. 9. If there are no floor nominations for Vice President, the election will proceed. President Tiegs will close the nominations and delegates will vote by holding up their “Yes” or “No” proxy voting cards. 10. If there are floor nominations for Vice President, the nominations will follow the procedures described in item 6 above, and the election will proceed according to the steps outlined in 6.a. through 6.f. IF THERE ARE NO FLOOR NOMINATIONS FOR THE ELECTION OF OFFICERS, THE WEDNESDAY GENERAL SESSION MEMBERSHIP MEETING WILL PROCEED WITH A VOTE ON THE PROPOSED AMENDMENTS TO THE BYLAWS. 11. Legal Affairs Committee Chair Jeni Buckman will provide an overview of the proposed amendments to the bylaws. a. Consideration of amendments to the bylaws. b. Request for motion / second from the floor to approve the proposed amendments to the bylaws. c. Discussion of proposed amendments. d. Opportunity for members to offer changes to proposed amendments to the bylaws. Any proposed changes to the bylaw amendments as currently proposed require a majority vote of the voting members present. e. Call for the question. A two-thirds vote of the members present and voting is required to amend the ACWA Bylaws. IF THERE ARE FLOOR NOMINATIONS FOR THE ELECTION OF OFFICERS, THE OVERVIEW AND VOTE ON THE PROPOSED AMENDMENTS TO THE BYLAWS WILL BE TAKEN UP AT THE GENERAL SESSION MEMBERSHIP MEETING ON THURSDAY AS FOLLOWS. 12. The vote by the membership on the proposed amendments to the bylaws will occur at the Thursday, General Session Membership Meeting, at the Platinum Ballroom 1-6, Anaheim Marriott, at 1:20 p.m. a. The General Session Membership Meeting will be called to order at 1:20 p.m. and a quorum will be determined. The presence of 50 formally designated voting representatives is required to establish a quorum for transacting business. b. Legal Affairs Committee Chair Jeni Buckman will provide an overview of the proposed bylaws amendments. c. The meeting will proceed according to the steps outlined 11.a. through 11.e. above. Brent Hastey Brent Hastey was elected to a two-year term as vice president of the Association of California Water Agencies on Dec. 2, 2015. He is a member of the Yuba County Water Agency Board of Directors and a former member of the Yuba County Board of Supervisors. He also has served on the boards of Reclamation District 784, Yuba County LAFCO, Regional Council of Rural Counties and the Sacramento Area Council of Governments. In addition to his service in the water management arena, Hastey has worked in higher education both locally and on a statewide level. In 2010, he was elected to the Yuba Community College District, which serves eight counties and spans nearly 4,200 square miles of rural Northern California. He recently was elected to the California Community College Trustee Board, which represents the state’s 72 community college districts. Hastey previously served on the ACWA Region 2 Board.   Steven E. LaMar (2014 - 2018) Steven E. LaMar was appointed to the IRWD Board of Directors in February 2009 to fill a board vacancy and was subsequently elected to a four-year term in 2010. He is currently serving as Board President through 2015. Previously, he served as Board President in 2011, 2014 and Board Vice President in 2013. Director LaMar currently serves on the Engineering & Operations Committee and the Water Resources Policy & Communications Committee, as well as various Ad Hoc Committees. LaMar is a water policy and planning expert with over 20 years of experience on statewide business and industry committees and has directly participated in many major water policy forums. He has served on statewide task forces and advisory committees on drought planning, desalination, the California Bay-Delta, the California Water Plan and on water reliability and conservation issues. LaMar is president and owner of LegiSight, LLC, located in Tustin, CA, and is also a principal for Spinner LaMar Associates since 1993. He has served as a water policy leader in the California Building Industry Association for 20 years. LaMar has extensive water policy service. He was a member of the California Water Plan 2009 Advisory Committee and a member of the Delta Vision Stakeholders Coordination Group. He was Chair of the Economic Work Group for the 2006 California Landscape Task Force. He served as member of the 2005 State Water Desalination Task Force, the 2000 Governor's Advisory Drought Planning Panel and Chair of the California Building Industry Association's statewide Water Resources Subcommittee and Task Force. LaMar has been honored for achievements and was the recipient of the 2001 Ernest Hahn Achievement Award from the California Business Properties Association, and the Building Industry Association of Southern California's Gary Anderson Memorial Award. LaMar holds a bachelor's degree in political science from Pittsburg State University and a certificate from the Environmental Management Institute, the U.S. Environmental Protection Agency environmental training program administered by the University of Southern California. He is past President of the Orange County Chapter of Alzheimer’s Association and is an avid hiker in regional parks. A resident of Irvine since 1981, LaMar and his wife Jeanne live in Northwood. They have two grown children, Kelly and Jack. ITEM NO. 12.1 AGENDA REPORT Meeting Date: November 14, 2017 Subject:Meetings from November 15 - December 31, 2017 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Event Date Time Attendance By November MWDOC Wed, Nov 15 8:30 AM Nederhood OCWD Wed, Nov 15 5:30 PM Jones Yorba Linda Planning Commission Wed, Nov 15 6:30 PM Hawkins (As Needed) Board of Directors Workshop Meeting Thu, Nov 16 6:30 PM OCSD State of the District Fri, Nov 17 8:00 AM Hawkins/Jones/Nederhood Interagency Committee Meeting with MWDOC and OCWD Mon, Nov 20 4:00 PM Miller/Nederhood YL City Council Tue, Nov 21 6:30 PM Nederhood OCSD Wed, Nov 22 6:00 PM Hawkins/Jones District Offices Closed Thu, Nov 23 7:00 AM ACWA/JPIA Fall Conference Mon, Nov 27 8:00 AM Nederhood ACWA/JPIA Fall Conference Tue, Nov 28 8:00 AM Nederhood ACWA Fall Conference Tue, Nov 28 8:00 AM Jones/Nederhood Board of Directors Regular Meeting Tue, Nov 28 6:30 PM ACWA Fall Conference Wed, Nov 29 8:00 AM Jones/Nederhood Yorba Linda Planning Commission Wed, Nov 29 6:30 PM Hawkins (As Needed) ACWA Fall Conference Thu, Nov 30 8:00 AM Jones/Nederhood December WACO Fri, Dec 1 7:30 AM Jones (All Directors PA) ACWA Fall Conference Fri, Dec 1 8:00 AM Jones/Nederhood ISDOC Executive Committee Tue, Dec 5 7:30 AM Nederhood Yorba Linda City Council Tue, Dec 5 6:30 PM Hall MWDOC Wed, Dec 6 8:30 AM Nederhood OCSD Operations Committee Wed, Dec 6 5:00 PM Hawkins OCWD Wed, Dec 6 5:30 PM Jones Board of Directors Workshop Meeting Thu, Dec 7 6:30 PM WACO Fri, Dec 8 7:30 AM Jones (All Board) Board of Directors Regular Meeting Tue, Dec 12 6:30 PM LAFCO Wed, Dec 13 8:00 AM Nederhood (As Needed) CRWUA Annual Conference Wed, Dec 13 8:00 AM Jones/Nederhood Yorba Linda Planning Commission Wed, Dec 13 6:30 PM Hawkins (As Needed) CRWUA Annual Conference Thu, Dec 14 8:00 AM Jones/Nederhood CRWUA Annual Conference Fri, Dec 15 8:00 AM Jones/Nederhood Joint Committee Meeting with City of Yorba Linda Mon, Dec 18 4:00 PM Nederhood/Hawkins YL City Council Tue, Dec 19 6:30 PM Hawkins MWDOC Wed, Dec 20 8:30 AM Nederhood OCWD Wed, Dec 20 5:30 PM Jones OCSD Wed, Dec 20 6:00 PM Hawkins/Jones District Offices Closed Mon, Dec 25 7:00 AM Yorba Linda Planning Commission Wed, Dec 27 6:30 PM Hawkins (As Needed) PA = Preauthorized Board of Directors Activity Calendar BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING Resolution No. 17-34 Amending Personnel Rules 1 RESOLUTION NO. 17-34 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING THE PERSONNEL RULES FOR THE YORBA LINDA WATER DISTRICT WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Personnel Rules by Resolution No. 13-01; and WHEREAS, Section 1.02 of the Personnel Rules sets forth the coverage and applicability of said rules; and WHEREAS, Section 3.02 of the Personnel Rules sets forth the procedures for classification changes; and WHEREAS, it is the Board of Directors desire to amend Section 1.02 of the Personnel Rules to rescind the provision of at-will employment in order to enhance the District’s recruitment efforts; and WHEREAS, the Board of Directors also desire to amend Section 3.02 of the Personnel Rules to further clarify the District’s procedures for classification changes. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Sections 1.02 and 3.02 of the Personnel Rules for the Yorba Linda Water District be amended as set forth in Exhibit A. PASSED AND ADOPTED this 14th day of November 2017 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District REVISED ITEM NO. 8.1. Resolution No. 17-34 Amending Personnel Rules 2 ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP Management Employees Compensation Letter FYs 2015-2018 Management Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII.The Assistant General Manager classificationAll Management Employees hired or promoted to a Management position on or after January 24, 2013 are at-will employees of the District, serves at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Management Employee position prior to January 24, 2013 are not at-will employees of the District and maintain the appeal rights as set forth in the District’s Personnel Rules. VIII.Effective July 1, 2016, the District will implement an eleven (11) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous nine (9) step salary schedule.Effective November 14, 2017, the District will implement a thirteen (13) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous eleven (11) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 1311. The District shall endeavor to have performance reviews completed by the REVISED ITEM NO. 8.2. Resolution No. 17-35 Amending Resolution No. 15-08 Related to Management Employees Compensation Letter 1 RESOLUTION NO. 17-35 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING EXHIBITS A AND E OF RESOLUTION NO. 15-08 TO RESCIND THE AT-WILL EMPLOYMENT PROVISION AND MODIFY THE PAY PLAN FOR MANAGEMENT EMPLOYEES FOR THE REMAINDER OF FISCAL YEARS 2015-2018 WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Employee Compensation Letter for Management Employees for Fiscal Years 2015-2018 (Resolution No. 15-08); and WHEREAS, the Board of Directors subsequently adopted Resolution No. 17-24 amending Exhibits B and E of the Employee Compensation Letter (Resolution No. 15-08) to modify the classifications, salary ranges and pay plan for Management employees; and WHEREAS, in order to enhance the District’s recruitment efforts, the Board of Directors desires to amend Exhibit A and further amend Exhibit E of the Employee Compensation Letter (Resolution No. 15-08) to rescind the provision of at- will employment, with the exception of the Assistant General Manager classification, and modify the pay plan for Management employees for the remainder of Fiscal Years 2015-2018. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Exhibit A - Management Employees Compensation Letter and Exhibit E - Management Employees Pay Plan of Resolution No. 15-08 be amended to read as attached hereto and by this reference incorporated herein. PASSED AND ADOPTED this 14th day of November 2017, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District Resolution No. 17-35 Amending Resolution No. 15-08 Related to Management Employees Compensation Letter 2 ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP Exhibit A Resolution No. 15-08 Employee Compensation Letter And Pay Plans for Management Employees Fiscal Years 2015-2018 I. The General Manager shall prepare an Employee Compensation Letter for the Board of Directors’ consideration. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Management Employee Group (Exhibit B). II. Effective July 1, 2015, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2015-2016 (reflecting a 2.5% base salary increase). III. Effective July 1, 2016, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2016-2017 (reflecting a 2% base salary increase). IV. Effective July 1, 2017, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2017-2018 (reflecting a 2% base salary increase). V. The District’s current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. The District has three tiers for retirement benefits: a. Tier 1 applies to District employees hired prior to January 26, 2012; b. Tier 2 applies to District employees hired between January 26, 2012 and December 31, 2012 and any District employees hired on or after January 1, 2013 who are defined as “classic members” under the Public Employees’ Retirement Law (“PERL”); and c. Tier 3 applies to District employees hired on or after January 1, 2013 who are defined as “new members” under the PERL. 1. Tier 1 and Tier 2 employees Tier 1 employees are enrolled in the 2% at 55 retirement formula. Tier 2 employees are enrolled in the 2% at 60 retirement formula. Tier 1 and Tier 2 employees pay the full employee contribution rate which is 7% of pensionable compensation. 2. Tier 3 employees Management Employees Compensation Letter FYs 2015-2018 Management Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII. The Assistant General Manager classification serves at the will of the General Manager and may be dismissed without cause or right of appeal. VIII. Effective November 14, 2017, the District will implement a thirteen (13) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous eleven (11) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 13. The District shall endeavor to have performance reviews completed by the employee’s anniversary date with the effective date of the merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee is entitled as a result of the performance review rating shall be retroactive to the anniversary date. IX. Management Employees shall accrue vacation leave time with pay as follows: Management Employees Compensation Letter FYs 2015-2018 Duration of Continuous Regular Employment Hours Accrued per Pay Period During 1st through 60th month (0-5 yrs) 3.077 hrs = 2.0 wks/yr During 61st through 120th month (5-10 yrs) 4.615 hrs = 3.0 wks/yr During 121st through 180th month (10-15 yrs) 5.384 hrs = 3.5 wks/yr During 181st through 240th month (15-20 yrs) 6.153 hrs = 4.0 wks/yr During 241st month and thereafter (20+ yrs) 6.922 hrs = 4.5 wks/yr X. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Management Employee under age 70, on the first day of the month following date of hire, in accordance with the provisions of the contract between the District and any company of the District’s choosing providing such coverage. Management Employees may purchase additional life insurance coverage up to $300,000 by authorizing the additional premium to be deducted from their salary. In addition, a Management Employee can purchase life insurance for their spouse up to half of the employee’s coverage level. Some medical restrictions may apply. XI. The District shall pay 100% of the premium for hospital and medical insurance for all Management Employees who work in excess of 30 hours per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Management Employee dependent coverage for covered employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XII. The District shall pay 100% of the premium for dental insurance for all Management Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Management Employee dependent coverage for covered Management Employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management Employees shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XIII. The District shall pay 100% of the premium for vision insurance for Management Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward dependent coverage for covered Management Employees with one or more Management Employees Compensation Letter FYs 2015-2018 dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management Employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XIV. For Management Employees who are employed by the District prior to December 8, 2011, and subject to carrier approval, the District shall pay the amounts provided in paragraphs XI, XII and XIII of this agreement for a period of time which is equivalent to one (1) year or pro ration thereof on a monthly basis for each three (3) years of service to the District or pro ration thereof on a quarterly basis. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete consecutive years of service with the District, must provide ninety (90) days’ notice of intent to retire, retire from the District in good standing and remain in a retired status. The retired Management Employee must make any contribution required of a regular Management Employee pursuant to paragraphs XI, XII and XIII prior to the first day of the month in which coverage is to be extended. Failure of a Management Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. When the Management retiree, or their spouse, reaches age 65 and is eligible for Medicare, the coverage provided by the District shall become secondary to Medicare for the remainder of the benefit period. Management Employees hired on or after December 8, 2011 shall be ineligible to receive this benefit. XV. A Management Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of their final salary for ⅜ of their accumulated days of sick leave, if any, at the time of separation from active employment. The remaining ⅝ of their accumulated days of sick leave will be converted into CalPERS service credit. XVI. Management Employees who are laid off from District employment after being employed by the District for five (5) or more complete consecutive years of regular employment shall be compensated for accumulated, unused sick leave above 400 hours as follows: Management Employees Compensation Letter FYs 2015-2018 YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XVII. The District shall provide a long-term disability plan for Management Employees which has a 90-day elimination period and provides 66 ⅔% of an employee’s monthly pre-disability earnings to a maximum of $7,000 per month for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XVIII. The District shall provide a short-term disability plan for Management Employees which has a twenty-nine (29) day elimination period up to an employee’s eligibility for long-term disability and provides 66 ⅔% of an employee’s weekly pre-disability earnings to a maximum of $1,500 per week for a designated period of nine (9) weeks in accordance with coverage procured by the District from a carrier to be determined at the District’s sole discretion. XIX. The District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Management Employee’s salary or the employee’s actual amount of deferred compensation per payroll period, whichever amount is lesser. XX. Management Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this Employee Compensation Letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. XXI. In situations where a Management Employee has been injured in a non-duty accident and their disability leave exceeds thirty calendar days, their merit review and anniversary dates will be adjusted accordingly for that portion of leave exceeding thirty (30) calendar days. XXII. The District established a cafeteria plan under Section 125 of the Internal Revenue Code. Employees can voluntarily participate in both tax advantage flexible benefit and dependent care plans. Employees can elect to deduct up to an annual maximum of $2,000 towards the flexible benefit plan and/or an annual maximum of $5,000 towards the dependent care plan from their paychecks over twenty-four (24) pay periods per calendar year. The cafeteria plan will allow Management Employees to convert their share of insurance premiums, un- Management Employees Compensation Letter FYs 2015-2018 reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. XXIII. The District shall reimburse Management Employees for sums paid to the appropriate agencies for obtaining or renewing treatment and/or distribution certificates and other professional certifications, registrations and job related training. XXIV. Management Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District purchased safety footwear in an amount not to exceed $200.00 each fiscal year. Safety footwear must meet American National Standards Institute (ANSI) minimum compression and impact performance standards in ANSI Z41- 1991 or provide equivalent protection. At the end of the current fiscal year, any unused funds shall not carry over into the next fiscal year. XXV. The District shall provide pre-approved reimbursement to Management Employees for the cost of tuition, fees, books and parking relating to educational courses directly related to an employee’s essential job duties for the employee’s present work classification as approved in advance by the General Manager and the Human Resources/Risk Manager. As education reimbursement each fiscal year, employees may receive up to the equivalent of one year’s full-time tuition at California State University for an in-state student. University and college-level course work must be undertaken at a Western Association of Schools and Colleges and Universities (WASC) accredited institution. To qualify for reimbursement, Management Employees must successfully complete a pre-approved course with a passing grade (C or better). In the event of a “Credit/No Credit” course, “Credit” will be considered a passing grade. Proof of payment and successful completion of the course with a passing grade as indicated in the District’s Educational Reimbursement Policy must accompany the Educational Tuition Reimbursement form (Exhibit A of the District’s Educational Reimbursement Policy). Management Employees shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee’s final check. Any remaining non-reimbursed amount shall be paid to the District within Management Employees Compensation Letter FYs 2015-2018 ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. In the event of a layoff or work hour reduction, reimbursement will cover courses that are already in progress, provided that the employee successfully completes them with a passing grade and fulfills the other provisions of the Educational Reimbursement Policy. XXVI. Management Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that a minimum of one- half (1/2) the vacation time to which the employee is entitled within the same annual period of the sold vacation time remains in the employee’s vacation account after the cash distribution. Sell-back of vacation time will only be paid on the second payday in November of each year. XXVII. Management Employees will be entitled to car allowance of $400.00/month as determined by the General Manager. The Engineering Manager, Finance Manager, IT Manager, Human Resources/Risk Manager, Operations Manager and Public Information Manager positions shall be eligible for this benefit. XXVIII. Management Employees shall receive a maximum of forty (40) hours of management leave with pay each fiscal year. Unused management leave time at the end of each fiscal year, June 30, will be paid during the following month of July with said time being calculated at the employee’s then straight time hourly rate. There will be no carry-over of management leave time to the next fiscal year. Management Employees joining after the start of the fiscal year shall receive a prorated benefit based on the number of remaining payroll periods in the fiscal year. XXIX. The Holiday schedule attached hereto as Exhibit F shall be in effect for full-time Management Employees covered by this Management Letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Management Employee normally would have worked other than for the holiday. For those Management Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday and a holiday falling on a Sunday, shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within the fiscal year in which it is accrued or the following fiscal year. Any unused floating holiday time will be cashed out at the employee’s base hourly rate at the end of Management Employees Compensation Letter FYs 2015-2018 the fiscal year following the fiscal year during which the time was accrued. For example any unused floating holiday time accrued during fiscal year 2015-16 would be paid out at the end of fiscal year 2016-17. In order to be eligible for holiday pay, a Management Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. XXX. The term of this Compensation Letter for Management Employees is for the period of July 1, 2015 to June 30, 2018. ___________________________ __________________ Marc Marcantonio Date General Manager Exhibit E YLWD Pay Plan-Management Employees Effective November 14,2017 through June 30,2018 Range I Step 1 I Step 2 1 Step 3 1 Step 4 1 Step 5 1 Step 6 Step 7 1 Step 8 Step 9 I Step 10 I Step 11 I Step 12 I Step 13 IME 33 Hourly $ 49.85 $ 51.10 $ 52.37 $ 53.68 $ 55.03 $ 56.40 $ 57.81 $ 59.26 $ 60.74 $ 62.26 $ 63.81 $ 65.41 $ 67.04 Monthly $ 8,640.67 $ 8,857.33 $ 9,077.47 $ 9,304.53 $ 9,538.53 $ 9,776.00 $ 10,020.40 $ 10,271.73 $ 10,528.27 $ 10,791.73 $ 11,060.40 $ 11,337.73 $ 11,620.27 Yearly $ 103,688 $ 106,288 $ 108,930 $ 111,654 $ 114,462 $ 117,312 $ 120,245 $ 123,261 $ 126,339 $ 129,501 $ 132,725 $ 136,053 $ 139,443 IME 34 Hourly $ 52.34 $ 53.65 $ 54.99 $ 56.37 $ 57.78 $ 59.22 $ 60.70 $ 62.22 $ 63.77 $ 65.37 $ 67.00 $ 68.68 $ 70.39 1 Monthly $ 9,072.27 $ 9,299.33 $ 9,531.60 $ 9,770.80 $ 10,015.20 $ 10,264.80 $ 10,521.33 $ 10,784.80 $ 11,053.47 $ 11,330.80 $ 11,613.33 $ 11,904.53 $ 12,200.93 Yearly $ 108,867 $ 111,592 $ 114,379 $ 117,250 $ 120,182 $ 123,178 $ 126,256 $ 129,418 $ 132,642 $ 135,970 $ 139,360 $ 142,854 $ 146,411 IME 35 Hourly $ 54.96 $ 56.33 $ 57.74 $ 59.19 $ 60.67 $ 62.18 $ 63.74 $ 65.33 $ 66.96 $ 68.64 $ 70.35 $ 72.11 $ 73.91 Monthly $ 9,526.40 $ 9,763.87 $ 10,008.27 $ 10,259.60 $ 10,516.13 $ 10,777.87 $ 11,048.27 $ 11,323.87 $ 11,606.40 $ 11,897.60 $ 12,194.00 $ 12,499.07 $ 12,811.07 Yearly $ 114,317 $ 117,166 $ 120,099 $ 123,115 $ 126,194 $ 129,334 $ 132,579 $ 135,886 $ 139,277 $ 142,771 $ 146,328 $ 149,989 $ 153,733 IME 36 Hourly $ 57.71 $ 59.15 $ 60.63 $ 62.14 $ 63.70 $ 65.29 $ 66.92 $ 68.60 $ 70.31 $ 72.07 $ 73.87 $ 75.72 $ 77.61 1 Monthly $ 10,003.07 $ 10,252.67 $ 10,509.20 $ 10,770.93 $ 11,041.33 $ 11,316.93 $ 11,599.47 $ 11,890.67 $ 12,187.07 $ 12,492.13 $ 12,804.13 $ 13,124.80 $ 13,452.40 1 Yearly $ 120,037 $ 123,032 $ 126,110 $ 129,251 $ 132,496 $ 135,803 $ 139,194 $ 142,688 $ 146,245 $ 149,906 $ 153,650 $ 157,498 $ 161,429 IME 37 Hourly $ 60.59 $ 62.11 $ 63.66 $ 65.25 $ 66.88 $ 68.56 $ 70.27 $ 72.03 $ 73.83 $ 75.67 $ 77.56 $ 79.50 $ 81.49 Monthly $ 10,502.27 $ 10,765.73 $ 11,034.40 $ 11,310.00 $ 11,592.53 $ 11,883.73 $ 12,180.13 $ 12,485.20 $ 12,797.20 $ 13,116.13 $ 13,443.73 $ 13,780.00 $ 14,124.93 Yearly $ 126,027 $ 129,189 $ 132,413 $ 135,720 $ 139,110 $ 142,605 $ 146,162 $ 149,822 $ 153,566 $ 157,394 $ 161,325 $ 165,360 $ 169,499 IME 38 Hourly $ 63.62 $ 65.21 $ 66.84 $ 68.51 $ 70.23 $ 71.98 $ 73.78 $ 75.63 $ 77.52 $ 79.46 $ 81.44 $ 83.48 $ 85.57 Monthly $ 11,027.47 $ 11,303.07 $ 11,585.60 $ 11,875.07 $ 12,173.20 $ 12,476.53 $ 12,788.53 $ 13,109.20 $ 13,436.80 $ 13,773.07 $ 14,116.27 $ 14,469.87 $ 14,832.13 Yearly $ 132,330 $ 135,637 $ 139,027 $ 142,501 $ 146,078 $ 149,718 $ 153,462 $ 157,310 $ 161,242 $ 165,277 $ 169,395 $ 173,638 $ 177,986 IME 39 Hourly $ 66.80 $ 68.47 $ 70.19 $ 71.94 $ 73.74 $ 75.58 $ 77.47 $ 79.41 $ 81.39 $ 83.43 $ 85.51 $ 87.65 $ 89.84 Monthly $ 11,578.67 $ 11,868.13 $ 12,166.27 $ 12,469.60 $ 12,781.60 $ 13,100.53 $ 13,428.13 $ 13,764.40 $ 14,107.60 $ 14,461.20 $ 14,821.73 $ 15,192.67 $ 15,572.27 1 Yearly $ 138,944 $ 142,418 $ 145,995 $ 149,635 $ 153,379 $ 157,206 $ 161,138 $ 165,173 $ 169,291 $ 173,534 $ 177,861 $ 182,312 $ 186,867 IME 40 Hourly $ 70.14 $ 71.90 $ 73.69 $ 75.54 $ 77.43 $ 79.36 $ 81.35 $ 83.38 $ 85.46 $ 87.60 $ 89.79 $ 92.03 $ 94.34 Monthly $ 12,157.60 $ 12,462.67 $ 12,772.93 $ 13,093.60 $ 13,421.20 $ 13,755.73 $ 14,100.67 $ 14,452.53 $ 14,813.07 $ 15,184.00 $ 15,563.60 $ 15,951.87 $ 16,352.27 Yearly $ 145,891 $ 149,552 $ 153,275 $ 157,123 $ 161,054 $ 165,069 $ 169,208 $ 173,430 $ 177,757 $ 182,208 $ 186,763 $ 191,422 $ 196,227 IME 41 Hourly $ 73.65 $ 75.49 $ 77.38 $ 79.31 $ 81.30 $ 83.33 $ 85.41 $ 87.55 $ 89.74 $ 91.98 $ 94.28 $ 96.64 $ 99.05 Monthly $ 12,766.00 $ 13,084.93 $ 13,412.53 $ 13,747.07 $ 14,092.00 $ 14,443.87 $ 14,804.40 $ 15,175.33 $ 15,554.93 $ 15,943.20 $ 16,341.87 $ 16,750.93 $ 17,168.67 Yearly $ 153,192 $ 157,019 $ 160,950 $ 164,965 $ 169,104 $ 173,326 $ 177,653 $ 182,104 $ 186,659 $ 191,318 $ 196,102 $ 201,011 $ 206,024 IME 42 Hourly $ 77.33 $ 79.27 $ 81.25 $ 83.28 $ 85.36 $ 87.50 $ 89.68 $ 91.93 $ 94.22 $ 96.58 $ 98.99 $ 101.47 $ 104.01 Monthly $ 13,403.87 $ 13,740.13 $ 14,083.33 $ 14,435.20 $ 14,795.73 $ 15,166.67 $ 15,544.53 $ 15,934.53 $ 16,331.47 $ 16,740.53 $ 17,158.27 $ 17,588.13 $ 18,028.40 Yearly $ 160,846 $ 164,882 $ 169,000 $ 173,222 $ 177,549 $ 182,000 $ 186,534 $ 191,214 $ 195,978 $ 200,886 $ 205,899 $ 211,058 $ 216,341 IME 43 Hourly $ 81.20 $ 83.23 $ 85.31 $ 87.44 $ 89.63 $ 91.87 $ 94.17 $ 96.52 $ 98.93 $ 101.41 $ 103.94 $ 106.54 $ 109.21 Monthly $ 14,074.67 $ 14,426.53 $ 14,787.07 $ 15,156.27 $ 15,535.87 $ 15,924.13 $ 16,322.80 $ 16,730.13 $ 17,147.87 $ 17,577.73 $ 18,016.27 $ 18,466.93 $ 18,929.73 Yearly $ 168,896 $ 173,118 $ 177,445 $ 181,875 $ 186,430 $ 191,090 $ 195,874 $ 200,762 $ 205,774 $ 210,933 $ 216,195 $ 221,603 $ 227,157 In the event of a keying/formula discrepancy,all pay plans(salary matrices)are calculated at 2.5%between each step and 5.0%between each range. Professional and Confidential Employees Compensation Letter FYs 2015-2018 Professional and Confidential Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to CalPERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII. All Professional and Confidential Employees hired or promoted to a Professional and Confidential position on or after January 24, 2013 are at-will employees of the District and serve at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Professional and Confidential Employee position prior to January 24, 2013 are not at-will employees of the District and maintain the appeal rights as set forth in the District’s Personnel Rules. VIII.VII. Effective July 1, 2016November 14, 2017, the District will implement an eleven thirteen (131) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous nineeleven (119) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 1113. The District shall endeavor to have performance reviews completed by the employee’s anniversary date with the effective date of the merit salary increase Resolution No. 17-36 Amending Resolution No. 15-07 Related to Professional and Confidential Employees Compensation Letter 1 RESOLUTION NO. 17-36 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING EXHIBITS A AND E OF RESOLUTION NO. 15-07 TO RESCIND THE AT -WILL EMPLOYMENT PROVISION AND MODIFY THE PAY PLAN FOR PROFESSIONAL AND CONFIDENTIAL EMPLOYEES FOR THE REMAINDER OF FISCAL YEARS 2015-2018 WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Employee Compensation Letter for Supervisory and Confidential Employees for Fiscal Years 2015-2018 (Resolution No. 15- 07); and WHEREAS, the Board of Directors subsequently adopted Resolution No. 17-23 amending Exhibit B of the Employee Compensation Letter (Resolution No. 15-07) to modify the classifications and salary ranges for Professional and Confidential employees; and WHEREAS, in order to enhance the District’s recruitment efforts, the Board of Directors desires to amend both Exhibits A and E of the Employee Compensation Letter (Resolution No. 15-07) to rescind the provision of at-will employment and modify the pay plan for Professional and Confidential employees for the remainder of Fiscal Years 2015-2018. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Exhibit A - Professional and Confidential Employee Compensation Letter and Exhibit E - Professional and Confidential Employees Pay Plan for Fiscal Year 2017-2018 of Resolution No. 15-07 be amended to read as attached hereto and by this reference incorporated herein. PASSED AND ADOPTED this 14th day of November 8, 2017, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: J. Wayne Miller, Ph.D., President Yorba Linda Water District Resolution No. 17-36 Amending Resolution No. 15-07 Related to Professional and Confidential Employees Compensation Letter 2 ATTEST: Marc Marcantonio, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP Exhibit A Resolution No. 15-07 Employee Compensation Letter And Pay Plans for Professional and Confidential Employees Fiscal Years 2015-2018 I. The General Manager shall prepare an Employee Compensation Letter for the Board of Directors’ consideration. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Professional and Confidential Employee Group (Exhibit B). II. Effective July 1, 2015, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2015-2016 (reflecting a 2.5% base salary increase). III. Effective July 1, 2016, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2016-2017 (reflecting a 2% base salary increase). IV. Effective July 1, 2017, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2017-2018 (reflecting a 2% base salary increase). V. The District’s current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. The District has three tiers for retirement benefits: a. Tier 1 applies to District employees hired prior to January 26, 2012; b. Tier 2 applies to District employees hired between January 26, 2012 and December 31, 2012 and any District employees hired on or after January 1, 2013 who are defined as “classic members” under the Public Employees’ Retirement Law (PERL); and c. Tier 3 applies to District employees hired on or after January 1, 2013 who are defined as “new members” under the PERL. 1. Tier 1 and Tier 2 employees Tier 1 employees are enrolled in the 2% at 55 retirement formula. Tier 2 employees are enrolled in the 2% at 60 retirement formula. Tier 1 and Tier 2 employees pay the full employee contribution rate which is 7% of pensionable compensation. 2. Tier 3 employees Professional and Confidential Employees Compensation Letter FYs 2015-2018 Professional and Confidential Employees hired on or after January 1, 2013 who are “new members” as defined in the Public Employees’ Pension Reform Act of 2013 (PEPRA) are provided the following retirement benefits: 2.5% at 67 benefit formula with a three year (36 month) final compensation period. Employees may designate the highest 36 month period. Tier 3 employees shall individually pay an initial CalPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. VI. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to CalPERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. VII. Effective November 14, 2017, the District will implement a thirteen (13) step salary schedule with a 2.5% salary difference between steps replacing the District’s previous eleven (11) step salary schedule. Subsequent movement on the salary schedule is based on merit as follows: Evaluation process Each employee shall be reviewed annually on a one-year interval. Effective July 1, 2016, the District will implement a new five-rating performance evaluation with the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations, Exceeds Expectations, and Outstanding. An employee who receives an overall rating Exceeds Expectations and with no Unsatisfactory and no more than two (2) Needs Improvement ratings on their evaluation shall be entitled to move one (1) step. An employee who receives an overall rating of Outstanding with no Unsatisfactory and no Needs Improvement ratings on their evaluation shall move two (2) steps. Movement shall take place until an employee has reached step 13. The District shall endeavor to have performance reviews completed by the employee’s anniversary date with the effective date of the merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee is entitled as a result of the performance review rating shall be retroactive to the anniversary date. VIII. Professional and Confidential Employees shall accrue vacation leave time with pay as follows: Professional and Confidential Employees Compensation Letter FYs 2015-2018 Duration of Continuous Regular Employment Hours Accrued per Pay Period During 1st through 60th month (0-5 yrs) 3.077 hrs = 2.0 wks/yr During 61st through 120th month (5-10 yrs) 4.615 hrs = 3.0 wks/yr During 121st through 180th month (10-15 yrs) 5.384 hrs = 3.5 wks/yr During 181st through 240th month (15-20 yrs) 6.153 hrs = 4.0 wks/yr During 241st month and thereafter (20+ yrs) 6.922 hrs = 4.5 wks/yr IX. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Professional and Confidential Employee under age 70, on the first day of the month following date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Professional and Confidential Employees may purchase additional life insurance coverage up to $300,000 by authorizing the additional premium to be deducted from their salary. In addition, a Professional and Confidential Employee can purchase life insurance for their spouse up to half of the employee’s coverage level. Some medical restrictions may apply. X. The District shall pay 100% of the premium for hospital and medical insurance for all Professional and Confidential Employees who work in excess of 30 hours per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Professional and Confidential Employee dependent coverage for covered employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Professional and Confidential Employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XI. The District shall pay 100% of the premium for dental insurance for all Professional and Confidential Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward Professional and Confidential Employee dependent coverage for covered Professional and Confidential Employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Professional and Confidential Employee shall pay the cost of the difference in premium, to be deducted from the employee’s salary to cover the employee’s ⅓ share of the dependent coverage. XII. The District shall pay 100% of the premium for vision insurance for Professional and Confidential Employees who work in excess of 30 hours or more per week, effective the first of the month following date of hire and ⅔ of the additional premium toward dependent coverage for covered Professional and Confidential Professional and Confidential Employees Compensation Letter FYs 2015-2018 Employees with one or more dependents in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Professional and Confidential Employee shall pay the cost of the difference in premium, to be deducted from their salary to cover the employee’s ⅓ share of the dependent coverage. XIII. For Professional and Confidential Employees who are employed by the District prior to December 8, 2011, and subject to carrier approval, the District shall pay the amounts provided in paragraphs XI, XII and XIII of this agreement for a period of time which is equivalent to one (1) year or pro ration thereof on a monthly basis for each three (3) years of service to the District or pro ration thereof on a quarterly basis. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete consecutive years of service with the District, must provide ninety (90) days’ notice of intent to retire, retire from the District in good standing and remain in a retired status. The retired Professional and Confidential Employee must make any contribution required of a regular Professional and Confidential Employee pursuant to paragraphs XI, XII and XIII prior to the first day of the month in which coverage is to be extended. Failure of a Professional and Confidential Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. When the Professional and Confidential retiree or their spouse reaches age 65 and is eligible for Medicare, the coverage provided by the District shall become secondary to Medicare for the remainder of the benefit period. Professional and Confidential Employees hired on or after December 8, 2011 shall be ineligible to receive this benefit. XIV. A Professional and Confidential Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of their final salary for ⅜ of their accumulated days of sick leave, if any, at the time of separation from active employment. The remaining ⅝ of their accumulated days of sick leave will be converted into CalPERS service credit. XV. Professional and Confidential Employees who are laid off from District employment after being employed by the District for five (5) or more complete consecutive years of regular employment, shall be compensated for accumulated, unused sick leave above 400 hours as follows: Professional and Confidential Employees Compensation Letter FYs 2015-2018 YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XVI. The District shall provide a long-term disability plan for Professional and Confidential Employees which has a 90-day elimination period and provides 66 ⅔% of an employee’s monthly pre-disability earnings to a maximum of $7,000 per month for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XVII. The District shall provide a short-term disability plan for Professional and Confidential Employees which has a twenty-nine (29) day elimination period up to an employee’s eligibility for long-term disability and provides 66 ⅔% of an employee’s weekly pre-disability earnings to a maximum of $1,500 per week for a designated period of nine (9) weeks in accordance with coverage procured by the District from a carrier to be determined at the District’s sole discretion. XVIII. The District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Professional and Confidential Employee’s salary or the employee’s actual amount of deferred compensation per payroll period, whichever amount is lesser. XIX. Professional and Confidential Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this Employee Compensation Letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. XX. In situations where a Professional and Confidential Employee has been injured in a non-duty accident and their disability leave exceeds thirty (30) calendar days, their merit review and anniversary dates will be adjusted accordingly for that portion of leave exceeding thirty (30) calendar days. XXI. The District established a cafeteria plan under Section 125 of the Internal Revenue Code. Employees can voluntarily participate in both tax advantage flexible benefit and dependent care plans. Employees can elect to deduct up to an annual maximum of $2,000 towards the flexible benefit plan and/or an annual maximum of $5,000 towards the dependent care plan from their paychecks over twenty-four (24) pay periods per calendar year. The cafeteria plan will allow Professional and Professional and Confidential Employees Compensation Letter FYs 2015-2018 Confidential Employees to convert their share of insurance premiums, un- reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. XXII. The District shall reimburse Professional and Confidential Employees for sums paid to the appropriate agencies for obtaining or renewing treatment and/or distribution certificates and other professional certifications, registrations and job related training. XXIII. Professional and Confidential Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00 each fiscal year. Safety footwear must meet American National Standards Institute (ANSI) minimum compression and impact performance standards in ANSI Z41- 1991 or provide equivalent protection. At the end of the current fiscal year, any unused funds shall not carry over into the next fiscal year. XXIV. The District shall provide pre-approved educational reimbursement to Professional and Confidential Employees for costs of tuition, fees, books and parking relating to educational courses directly related to an employee’s essential job duties for the employee’s present work classification as approved in advance by the General Manager and the Human Resources/Risk Manager. As education reimbursement each fiscal year, employees may receive up to the equivalent of one year’s full- time tuition at California State University for an in-state student. University and college-level course work must be undertaken at a Western Association of Schools and Colleges and Universities (WASC) accredited institution. To qualify for reimbursement, Professional and Confidential Employees must successfully complete a pre-approved course with a passing grade (C or better). In the event of a “Credit/No Credit” course, “Credit” will be considered a passing grade. Proof of payment and successful completion of the course with a passing grade as indicated in the District’s Educational Reimbursement Policy must accompany the Educational Tuition Reimbursement form (Exhibit A of the District’s Educational Reimbursement Policy). Professional and Confidential Employees shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period shall be considered a judgment due and owing to the District. The Professional and Confidential Employees Compensation Letter FYs 2015-2018 judgment amount shall be deducted from the employee’s final check. Any remaining, non-reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. In the event of a layoff or work hour reduction, reimbursement will cover courses that are already in progress, provided that the employee successfully completes them with a passing grade and fulfills the other provisions of the Educational Reimbursement Policy. XXV. Professional and Confidential Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that a minimum of one-half (½) the vacation time to which the employee is entitled within the same annual period of the sold vacation time remains in the employee’s vacation account after the cash distribution. Sell-back of vacation time will only be paid on the second payday in November of each year. XXVI. The Holiday schedule attached hereto as Exhibit F shall be in effect for full-time Professional and Confidential Employees covered by this Professional and Confidential Letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Professional and Confidential Employee normally would have worked other than for the holiday. For those Professional and Confidential Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday, and a holiday falling on a Sunday shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within the fiscal year in which it is accrued or the following fiscal year. Any unused floating holiday time will be cashed out at the employee’s base hourly rate at the end of the fiscal year following the fiscal year during which the time was accrued. For example, any unused floating holiday time accrued during fiscal year 2015-16 would be paid out at the end of fiscal year 2016-17. In order to be eligible for Holiday pay, a Professional and Confidential Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. XXVII. The District shall reimburse Professional and Confidential Employees for sums paid to the appropriate state agencies for obtaining or renewing of Distribution, Treatment and/or Collection certificates. In addition, a one-time per fiscal year payment of $150.00 per certificate shall be provided to an affected employee who Professional and Confidential Employees Compensation Letter FYs 2015-2018 has qualified for and been issued a State Water Resources Control Board (SWRCB) Distribution or Treatment and/or California Water Environment Association (CWEA) Collection Certificate(s) which has been determined in the sole discretion of the General Manager to be relevant to the employee’s duties and which is other than a certificate that is a job requirement. The $150.00 payment shall apply for any Distribution, Treatment and/or Collection Certificates issued by the SWRCB or CWEA that are required above and beyond the required certification for a specific classification within the District and shall be issued during each year in which the applicable certificate(s) remains valid and remains other than a certificate which is a job requirement. The table below identifies the positions that require specific State of California Certifications. Classification Req’d Treatment Req’d Distribution Req’d Collection SCADA Administrator T2 D3 Sr. Construction Inspector D2 Water Maintenance Superintendent D5 Water Production Superintendent T2 D5 Water Quality Engineer D3 XXVIII. The term of this Compensation Letter for Professional and Confidential Employees is for the period of July 1, 2015 to June 30, 2018. ___________________________ ______________________ Marc Marcantonio Date General Manager Exhibit E YLWD Pay Plan - Professional and Confidential Employees Effective November 14, 2017 through June 30, 2018 Range Step 1 Step 2 1 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 Step 12 I Step 13 PC 19 Hourly $ 25.18 $ 25.81 $ 26.45 $ 27.12 $ 27.79 $ 28.49 $ 29.20 $ 29.93 $ 30.68 $ 31.45 $ 32.23 $ 33.04 $ 33.86 Monthly $ 4,364.53 $ 4,473.73 $ 4,584.67 $ 4,700.80 $ 4,816.93 $ 4,938.27 $ 5,061.33 $ 5,187.87 $ 5,317.87 $ 5,451.33 $ 5,586.53 $ 5,726.93 $ 5,869.07 Yearly $ 52,374 $ 53,685 $ 55,016 $ 56,410 $ 57,803 $ 59,259 $ 60,736 $ 62,254 $ 63,814 $ 65,416 $ 67,038 $ 68,723 $ 70,429 PC 20 Hourly $ 26.44 $ 27.10 $ 27.78 $ 28.47 $ 29.18 $ 29.91 $ 30.66 $ 31.43 $ 32.21 $ 33.02 $ 33.84 $ 34.69 $ 35.56 Monthly $ 4,582.93 $ 4,697.33 $ 4,815.20 $ 4,934.80 $ 5,057.87 $ 5,184.40 $ 5,314.40 $ 5,447.87 $ 5,583.07 $ 5,723.47 $ 5,865.60 $ 6,012.93 $ 6,163.73 Yearly $ 54,995 $ 56,368 $ 57,782 $ 59,218 $ 60,694 $ 62,213 $ 63,773 $ 65,374 $ 66,997 $ 68,682 $ 70,387 $ 72,155 $ 73,965 PC 21 Hourly $ 27.76 $ 28.45 $ 29.17 $ 29.90 $ 30.64 $ 31.41 $ 32.19 $ 33.00 $ 33.82 $ 34.67 $ 35.54 $ 36.42 $ 37.34 Monthly $ 4,811.73 $ 4,931.33 $ 5,056.13 $ 5,182.67 $ 5,310.93 $ 5,444.40 $ 5,579.60 $ 5,720.00 $ 5,862.13 $ 6,009.47 $ 6,160.27 $ 6,312.80 $ 6,472.27 Yearly $ 57,741 $ 59,176 $ 60,674 $ 62,192 $ 63,731 $ 65,333 $ 66,955 $ 68,640 $ 70,346 $ 72,114 $ 73,923 $ 75,754 $ 77,667 PC 22 Hourly $ 29.15 $ 29.88 $ 30.62 $ 31.39 $ 32.18 $ 32.98 $ 33.80 $ 34.65 $ 35.52 $ 36.40 $ 37.31 $ 38.25 $ 39.20 Monthly $ 5,052.67 $ 5,179.20 $ 5,307.47 $ 5,440.93 $ 5,577.87 $ 5,716.53 $ 5,858.67 $ 6,006.00 $ 6,156.80 $ 6,309.33 $ 6,467.07 $ 6,630.00 $ 6,794.67 Yearly $ 60,632 $ 62,150 $ 63,690 $ 65,291 $ 66,934 $ 68,598 $ 70,304 $ 72,072 $ 73,882 $ 75,712 $ 77,605 $ 79,560 $ 81,536 PC 23 Hourly $ 30.61 $ 31.37 $ 32.16 $ 32.96 $ 33.78 $ 34.63 $ 35.49 $ 36.38 $ 37.29 $ 38.22 $ 39.18 $ 40.16 $ 41.16 Monthly $ 5,305.73 $ 5,437.47 $ 5,574.40 $ 5,713.07 $ 5,855.20 $ 6,002.53 $ 6,151.60 $ 6,305.87 $ 6,463.60 $ 6,624.80 $ 6,791.20 $ 6,961.07 $ 7,134.40 Yearly $ 63,669 $ 65,250 $ 66,893 $ 68,557 $ 70,262 $ 72,030 $ 73,819 $ 75,670 $ 77,563 $ 79,498 $ 81,494 $ 83,533 $ 85,613 PC 24 Hourly $ 32.14 $ 32.94 $ 33.76 $ 34.61 $ 35.47 $ 36.36 $ 37.27 $ 38.20 $ 39.16 $ 40.13 $ 41.14 $ 42.17 $ 43.22 Monthly $ 5,570.93 $ 5,709.60 $ 5,851.73 $ 5,999.07 $ 6,148.13 $ 6,302.40 $ 6,460.13 $ 6,621.33 $ 6,787.73 $ 6,955.87 $ 7,130.93 $ 7,309.47 $ 7,491.47 Yearly $ 66,851 $ 68,515 $ 70,221 $ 71,989 $ 73,778 $ 75,629 $ 77,522 $ 79,456 $ 81,453 $ 83,470 $ 85,571 $ 87,714 $ 89,898 PC 25 Hourly $ 33.74 $ 34.59 $ 35.45 $ 36.34 $ 37.25 $ 38.18 $ 39.13 $ 40.11 $ 41.11 $ 42.14 $ 43.19 $ 44.27 $ 45.38 Monthly $ 5,848.27 $ 5,995.60 $ 6,144.67 $ 6,298.93 $ 6,456.67 $ 6,617.87 $ 6,782.53 $ 6,952.40 $ 7,125.73 $ 7,304.27 $ 7,486.27 $ 7,673.47 $ 7,865.87 Yearly $ 70,179 $ 71,947 $ 73,736 $ 75,587 $ 77,480 $ 79,414 $ 81,390 $ 83,429 $ 85,509 $ 87,651 $ 89,835 $ 92,082 $ 94,390 PC 26 Hourly $ 35.43 $ 36.32 $ 37.22 $ 38.16 $ 39.11 $ 40.09 $ 41.09 $ 42.12 $ 43.17 $ 44.25 $ 45.35 $ 46.49 $ 47.65 Monthly $ 6,141.20 $ 6,295.47 $ 6,451.47 $ 6,614.40 $ 6,779.07 $ 6,948.93 $ 7,122.27 $ 7,300.80 $ 7,482.80 $ 7,670.00 $ 7,860.67 $ 8,058.27 $ 8,259.33 Yearly $ 73,694 $ 75,546 $ 77,418 $ 79,373 $ 81,349 $ 83,387 $ 85,467 $ 87,610 $ 89,794 $ 92,040 $ 94,328 $ 96,699 $ 99,112 PC 27 Hourly $ 37.20 $ 38.13 $ 39.09 $ 40.06 $ 41.06 $ 42.09 $ 43.14 $ 44.22 $ 45.33 $ 46.46 $ 47.62 $ 48.81 $ 50.03 Monthly $ 6,448.00 $ 6,609.20 $ 6,775.60 $ 6,943.73 $ 7,117.07 $ 7,295.60 $ 7,477.60 $ 7,664.80 $ 7,857.20 $ 8,053.07 $ 8,254.13 $ 8,460.40 $ 8,671.87 Yearly $ 77,376 $ 79,310 $ 81,307 $ 83,325 $ 85,405 $ 87,547 $ 89,731 $ 91,978 $ 94,286 $ 96,637 $ 99,050 $ 101,525 $ 104,062 PC 28 Hourly $ 39.06 $ 40.04 $ 41.04 $ 42.07 $ 43.12 $ 44.20 $ 45.30 $ 46.43 $ 47.59 $ 48.78 $ 50.00 $ 51.25 $ 52.53 Monthly $ 6,770.40 $ 6,940.27 $ 7,113.60 $ 7,292.13 $ 7,474.13 $ 7,661.33 $ 7,852.00 $ 8,047.87 $ 8,248.93 $ 8,455.20 $ 8,666.67 $ 8,883.33 $ 9,105.20 Yearly $ 81,245 $ 83,283 $ 85,363 $ 87,506 $ 89,690 $ 91,936 $ 94,224 $ 96,574 $ 98,987 $ 101,462 $ 104,000 $ 106,600 $ 109,262 PC 29 Hourly $ 41.02 $ 42.04 $ 43.09 $ 44.17 $ 45.27 $ 46.41 $ 47.57 $ 48.75 $ 49.97 $ 51.22 $ 52.50 $ 53.82 $ 55.16 Monthly $ 7,110.13 $ 7,286.93 $ 7,468.93 $ 7,656.13 $ 7,846.80 $ 8,044.40 $ 8,245.47 $ 8,450.00 $ 8,661.47 $ 8,878.13 $ 9,100.00 $ 9,328.80 $ 9,561.07 Yearly $ 85,322 $ 87,443 $ 89,627 $ 91,874 $ 94,162 $ 96,533 $ 98,946 $ 101,400 $ 103,938 $ 106,538 $ 109,200 $ 111,946 $ 114,733 In the event of a keying/formula discrepancy,all pay plans(salary matrices)are calculated at 2.5%between each step and 5.0%between each range. Exhibit E YLWD Pay Plan - Professional and Confidential Employees Effective November 14, 2017 through June 30, 2018 Range I Step 1 1 Step 2 1 Step 3 1 Step 4 Step 5 Step 6 Step 7 I Step 8 I Step 9 Step 10 Step 11 Step 12 I Step 13 PC 30 Hourly $ 43.07 $ 44.14 $ 45.25 $ 46.38 $ 47.54 $ 48.73 $ 49.94 $ 51.19 $ 52.47 $ 53.78 $ 55.13 $ 56.51 $ 57.92 Monthly $ 7,465.47 $ 7,650.93 $ 7,843.33 $ 8,039.20 $ 8,240.27 $ 8,446.53 $ 8,656.27 $ 8,872.93 $ 9,094.80 $ 9,321.87 $ 9,555.87 $ 9,795.07 $ 10,039.47 Yearly $ 89,586 $ 91,811 $ 94,120 $ 96,470 $ 98,883 $ 101,358 $ 103,875 $ 106,475 $ 109,138 $ 111,862 $ 114,670 $ 117,541 $ 120,474 PC 31 Hourly $ 45.22 $ 46.35 $ 47.51 $ 48.70 $ 49.91 $ 51.16 $ 52.44 $ 53.75 $ 55.10 $ 56.47 $ 57.88 $ 59.33 $ 60.82 Monthly $ 7,838.13 $ 8,034.00 $ 8,235.07 $ 8,441.33 $ 8,651.07 $ 8,867.73 $ 9,089.60 $ 9,316.67 $ 9,550.67 $ 9,788.13 $ 10,032.53 $ 10,283.87 $ 10,542.13 Yearly $ 94,058 $ 96,408 $ 98,821 $ 101,296 $ 103,813 $ 106,413 $ 109,075 $ 111,800 $ 114,608 $ 117,458 $ 120,390 $ 123,406 $ 126,506 PC 32 Hourly $ 47.48 $ 48.67 $ 49.88 $ 51.13 $ 52.41 $ 53.72 $ 55.06 $ 56.44 $ 57.85 $ 59.30 $ 60.78 $ 62.30 $ 63.86 Monthly $ 8,229.87 $ 8,436.13 $ 8,645.87 $ 8,862.53 $ 9,084.40 $ 9,311.47 $ 9,543.73 $ 9,782.93 $ 10,027.33 $ 10,278.67 $ 10,535.20 $ 10,798.67 $ 11,069.07 Yearly $ 98,758 $ 101,234 $ 103,750 $ 106,350 $ 109,013 $ 111,738 $ 114,525 $ 117,395 $ 120,328 $ 123,344 $ 126,422 $ 129,584 $ 132,829 PC 33 Hourly $ 49.85 $ 51.10 $ 52.38 $ 53.69 $ 55.03 $ 56.41 $ 57.82 $ 59.26 $ 60.74 $ 62.26 $ 63.82 $ 65.41 $ 67.05 Monthly $ 8,640.67 $ 8,857.33 $ 9,079.20 $ 9,306.27 $ 9,538.53 $ 9,777.73 $ 10,022.13 $ 10,271.73 $ 10,528.27 $ 10,791.73 $ 11,062.13 $ 11,337.73 $ 11,622.00 Yearly $ 103,688 $ 106,288 $ 108,950 $ 111,675 $ 114,462 $ 117,333 $ 120,266 $ 123,261 $ 126,339 $ 129,501 $ 132,746 $ 136,053 $ 139,464 PC 34 Hourly $ 52.35 $ 53.66 $ 55.00 $ 56.37 $ 57.78 $ 59.23 $ 60.71 $ 62.22 $ 63.78 $ 65.37 $ 67.01 $ 68.68 $ 70.40 Monthly $ 9,074.00 $ 9,301.07 $ 9,533.33 $ 9,770.80 $ 10,015.20 $ 10,266.53 $ 10,523.07 $ 10,784.80 $ 11,055.20 $ 11,330.80 $ 11,615.07 $ 11,904.53 $ 12,202.67 Yearly $ 108,888 $ 111,613 $ 114,400 $ 117,250 $ 120,182 $ 123,198 $ 126,277 $ 129,418 $ 132,662 $ 135,970 $ 139,381 $ 142,854 $ 146,432 In the event of a keying/formula discrepancy,all pay plans(salary matrices)are calculated at 2.5%between each step and 5.0%between each range. ITEM NO. 9.2. PARS TRUST TEAM RiBLI PARS bank -AHIGHMARK° AGENCY RETIREMENT CAPITAL MANAGEMENT TRUSTED SOLUTIONS.LASTING RESULTS. Trust Administrator & Consultant Trustee Investment Manager • Record keeping/sub-trust accounting Safeguard plan assets 0 Investment sub-advisor • Actuarial coordination Oversight protection to U.S. Bank • Monitor contributions/process • Plan fiduciary • Open architecture disbursements • Custodian of assets • Investment strategy and asset • Monitor plan compliance allocation development• Ongoing client liaison Investment policy assistance Corporate Experience 33 years (1984- 2017) 154 years (1863 - 2017) 98 years (1919 - 2017) Plans Under Administration 1,600+ plans, 850+ public agencies, 400,000+ participants Dollars under Administration Over $2.4 billion Over$4 trillion Over $15.6 billion under management PARS AGENCY RETIREMENT sERmcE5 TRUSTED SOLUTIONS.LASTING RESULTS. MATERIALS SUBMITTE BY: Brett Barbre MEETING DATE: November 14, 2017 ITEM NO. 9.2. TRUST ADMINISTRATION (PARSI • Signature-ready implementation documents that have been reviewed by numerous attorneys • Maintenance of detailed accounting records, including any sub-accounting, which includes individual recordkeeping of the District's contributions, earnings, and assets • Reconciliation of contributions to the trust account • Coordination of distributions from the District's trust account, which includes receiving distribution documentation and directing the trustee to make distributions • Monthly statements to the District as well as any customized reports as requested • All necessary forms, handbooks,training, and technical support • Administrative training meeting at implementation as well as ongoing training as necessary • Onsite client service reviews to ensure the District's ongoing satisfaction with the trust program • Participation at Board meetings and assistance in preparing to present information to the District's Board, staff, or employee groups, if requested • Coordination of annual trust-wide audit • Preparation and submission of documents as required by the District's auditors for GASB 67/68 and 74/75 reporting • Periodic publications and resources on legislative regulatory developments related to pension funding • Ongoing consulting/analytical services as needed TRUSTEE SERVICES(U.S. BANKI • Safeguarding of assets for the exclusive benefit of District employees, retirees, and beneficiaries • Receipt and investment of the District's contributions according to selected investment strategy • Electronic interface and reporting to the trust administrator • Reimbursements for pension related costs made to either CalPERS, the District, or pension plan service providers INVESTMENT MANAGEMENT(HIGHMARK) • Flexible investment options • Ongoing fiduciary protections • Investment Policy Statement development • Assistance with asset allocation and investment portfolio development/selection based on District's risk tolerance • Ongoing account monitoring and investment policy assistance • Ongoing asset rebalancing • Quarterly reports and periodic onsite client reviews • Open architecture investment program • Dedicated Senior Portfolio Manager who will be directly available to the District at all times MATERIALS SUBMITTE BY: Brett Barbre MEETING DATE: November 14, 2017