HomeMy WebLinkAbout2018-10-09 - Board of Directors Meeting Agenda Packet (B)
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, October 9, 2018, 6:30 PM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
Al Nederhood, President
Brooke Jones, Vice President
Andrew J. Hall, Director
Phil Hawkins, Director
J. Wayne Miller, Director
4. ADDITIONS/DELETIONS TO THE AGENDA
5. INTRODUCTIONS AND PRESENTATIONS
5.1. Elected Official Liaison Reports
6. PUBLIC COMMENTS
Any individual wishing to address the Board is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment
when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited
to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three
minutes.
7. CONSENT CALENDAR
All items listed on the consent calendar are considered to be routine matters, status reports, or documents
covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion.
There will be no discussion on the items unless a member of the Board, staff, or public requests further
consideration.
7.1. Minutes of the Board of Directors Regular Meeting Held August 28, 2018
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 11,
2018
Recommendation: That the Board of Directors approve the minutes as presented.
7.3. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize disbursements in
the amount of $2,432,746.16.
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. Establishing Procedure for the Presentation of Claims Not Covered by the Government
Claims Act
Recommendation: That the Board of Directors adopt Ordinance No. 18-01
establishing a Local Claims Ordinance and delegating authority to the General
Manager to resolve small claims.
8.2. Amending the District's Conflict of Interest Code
Recommendation: That the Board of Directors approve Resolution No. 18-31
adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest
Codes and amendments previously adopted.
8.3. Election of Independent Special District of Orange County (ISDOC) Officers
Recommendation: That the Board of Directors instruct the President or alternate
Director to cast the District's ballot in this election.
8.4. Audit Report for Fiscal Year Ending June 30, 2018
Recommendation: That the Board of Directors receive and file the Yorba Linda
Water District Comprehensive Annual Financial Reports for Fiscal Year Ending
June 30, 2018, the Report on Internal Control, and the Communication to Those in
Governance Letter.
8.5. Adjourn to Yorba Linda Water District Financing Authority and Public Financing
Corporation Regular Meetings
9. DISCUSSION ITEMS
This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the
Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for
which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the
District’s interest to discuss these more complex matters at one meeting and consider formal action at another
meeting. This portion of the agenda may also include items for information only.
9.1. Results of Annual Assessment of Governing Board Effectiveness
9.2. Status of Engineering Activities
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
(Nederhood/Jones)
· Minutes of the meeting held September 27, 2018 at 4:00 p.m. will be provided when
available.
· Next meeting scheduled November 19, 2018 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Nederhood/Jones)
· Minutes of meeting held September 10, 2018 at 4:00 p.m.
· Next meeting scheduled December 10, 2018 at 4:00 p.m. at YL City Hall.
11.3. Joint Agency Committee with City of Placentia
(Nederhood/Jones)
· Next meeting yet to be scheduled.
12. INTERGOVERNMENTAL MEETINGS
12.1. CSDA Annual Conference - September 24-27, 2018 (Nederhood)
12.2. OCSD Board - September 26, 2018 (Hawkins)
12.3. MWD Inspection Trip - September 28-30, 2018 (Miller)
12.4. YL City Council - October 2, 2018 (Jones)
12.5. MWDOC Board - October 3, 2018 (Jones)
12.6. OCSD Operations Committee - October 3, 2018 (Hawkins)
12.7. OCWD Board - October 3, 2018 (Miller/Jones)
12.8. ACWA MCL Economic Feasibility Work Group - October 4, 2018 (Miller)
12.9. WACO - October 5, 2018
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from October 10 - December 31, 2018
14. ADJOURNMENT
14.1. A Board of Directors Workshop Meeting has been scheduled Wednesday, October 17,
2018 at 4:30 p.m. The Regular Meeting scheduled Tuesday, October 23, 2018 has
been cancelled. The next Regular Meeting will be held Tuesday, November 13, 2018.
Closed Session (if necessary) will begin at 5:30 p.m. and regular business at 6:30 p.m.
Items Distributed to the Board Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for
public inspection in the lobby of the District’s business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870,
during regular business hours. When practical, these public records will also be made available on the District’s internet
website accessible at http://www.ylwd.com/.
Accommodations for the Disabled
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 7.1
AGENDA REPORT
Meeting Date: October 9, 2018
Subject:Minutes of the Board of Directors Regular Meeting Held August 28, 2018
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2018-08-28_-_Minutes_-_BOD_(B).docx Minutes Minutes
Minutes of the YLWD Board of Directors Regular Meeting Held August 28, 2018 at 6:30 p.m. 1
2018-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, August 28, 2018, 6:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 6:30 p.m.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Al Nederhood, President Marc Marcantonio, General Manager
Brooke Jones, Vice President Brett Barbre, Assistant General Manager
Andrew J. Hall John DeCriscio, Operations Manager
J. Wayne Miller Gina Knight, HR/Risk and Safety Manager
Delia Lugo, Finance Manager
DIRECTORS ABSENT Rosanne Weston, Engineering Manager
Phil Hawkins Annie Alexander, Exec Asst/Board Secretary
Mike Carreon, Facilities Maintenance Worker
Malissa Muttaraid, Public Affairs Specialist
Kaden Young, Management Analyst
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
Joe Berg, Director of Water Use Efficiency, Municipal Water District of Orange County (MWDOC)
4. ADDITIONS/DELETIONS TO THE AGENDA
None
5. INTRODUCTIONS AND PRESENTATIONS
5.1. Elected Official Liaison Reports
Assistant General Manager Brett Barbre, in his capacity as Director for
MWDOC and the Metropolitan Water District of Southern California (MET),
reported on the recent activities of both agencies.
Minutes of the YLWD Board of Directors Regular Meeting Held August 28, 2018 at 6:30 p.m. 2
2018-XXX
6. PUBLIC COMMENTS
None.
7. CONSENT CALENDAR
Vice President Jones requested to remove Item No. 7.4. from the Consent
Calendar for separate action.
Director Jones made a motion, seconded by Director Miller, to approve the
remainder of the Consent Calendar. Motion carried 4-0-0-1 with Director
Hawkins being absent.
7.1. Minutes of the Board of Directors Regular Meeting Held July 10, 2018
Recommendation: That the Board of Directors approve the minutes as
presented.
7.2. Minutes of the Board of Directors Special Meeting Held July 24, 2018
Recommendation: That the Board of Directors approve the minutes as
presented.
7.3. Authorization of Director Attendance at Conferences, Seminars, and
Special Events
Recommendation: That the Board of Directors approve Director
attendance at the Water Education Foundation Summit on September 20,
2018.
7.5. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $1,276,331.84.
ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION
7.4. Vehicle Replacement for Operations Department
Staff responded to questions from the Board regarding the District’s
vehicle replacement program.
Minutes of the YLWD Board of Directors Regular Meeting Held August 28, 2018 at 6:30 p.m. 3
2018-XXX
Director Jones made a motion, seconded by Director Miller, to authorize
the General Manager to purchase three vehicles from George Chevrolet
for $81,558.66 and $5,000 for vehicle equipment, totaling in $86,558.66.
Motion carried 4-0-0-1 with Director Hawkins being absent.
8. DISCUSSION ITEMS
8.1. MWDOC’s Water Use Efficiency (WUE) Programs and Initiatives
(Nederhood)
Joe Berg from MWDOC presented information on the following topics:
how WUE programs were implemented in Southern California; why these
programs were implemented regionally; programs provided by MET and
MWDOC; future opportunities for program expansion; YLWD’s historical
urban water use and future targets; YLWD’s historical participation in
MWDOC’s programs; and ideas for promoting available programs to
YLWD’s customers.
8.2. Unaudited Financial Statements for the Fourth Quarter of FY18
Staff reviewed key information contained in this report.
9. REPORTS, INFORMATION ITEMS, AND COMMENTS
9.1. Directors' Reports
Director Miller reported on his attendance at the ACWA Water Quality
Committee Meeting on August 23, 2018.
President Nederhood reported on his attendance at the UWI Conference
held August 22-24, 2018.
9.2. General Manager's Report
General Manager Marc Marcantonio asked each of the managers in
attendance to report on activities within their respective departments. He
then informed the Board of some upcoming events.
9.3. General Counsel’s Report
None.
Minutes of the YLWD Board of Directors Regular Meeting Held August 28, 2018 at 6:30 p.m. 4
2018-XXX
9.4. Future Agenda Items and Staff Tasks
The Board and staff briefly reviewed matters to be discussed at the first
regular Board meeting in January. The group also discussed staff efforts
to finalize the 5-year forecast of the District’s operating budget and
scheduling a future workshop meeting to review same. Staff noted that a
presentation on the proposed Poseidon Desalination Project would be
provided at the regular meeting on September 11, 2018.
10. COMMITTEE REPORTS
10.1. Interagency Committee with MWDOC and OCWD
(Nederhood/Jones)
Minutes of the meeting held July 26, 2018 at 4:00 p.m. will be
provided when available.
Next meeting is scheduled September 27, 2018 at 4:00 p.m.
10.2. Joint Agency Committee with City of Yorba Linda
(Nederhood/Jones)
Next meeting is scheduled September 10, 2018 at 4:00 p.m. at YL
City Hall.
10.3. Joint Agency Committee with City of Placentia
(Nederhood/Jones)
Next meeting is yet to be scheduled.
11. INTERGOVERNMENTAL MEETINGS
The Directors noted their attendance at the following meetings and events.
11.1. MWDOC Board – August 15, 2018 (Nederhood/Jones)
11.2. OCWA Luncheon – August 15, 2018 (Jones/Miller/Nederhood)
11.3. OCWD Board – August 15, 2018 (Miller/Jones)
11.4. YL Planning Commission – August 15, 2018 (Hawkins – As Needed)
11.5 YL City Council – August 21, 2018 (Hall)
11.6. UWI Conference – August 22-24, 2018 (Jones/Nederhood)
Minutes of the YLWD Board of Directors Regular Meeting Held August 28, 2018 at 6:30 p.m. 5
2018-XXX
11.7. OCSD Board – August 22, 2018 (Hawkins)
11.8. ACWA Water Quality Committee Meeting – August 23, 2018 (Miller)
12. BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1. Meetings from August 29 – October 31, 2018
The Board made no changes to the activity calendar.
13. ADJOURNMENT
13.1. The meeting was adjourned at 8:54 p.m.
Annie Alexander
Board Secretary
ITEM NO. 7.2
AGENDA REPORT
Meeting Date: October 9, 2018
Subject:Minutes of the Board of Directors Special and Regular Meetings
Held September 11, 2018
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
Name:Description:Type:
2018-09-11_-_Minutes_-_BOD_(A).docx Minutes Minutes
2018-09-11_-_Minutes_-_BOD_(B).docx Minutes Minutes
Minutes of the YLWD Board of Directors Special Meeting Held September 11, 2018 at 5:30 p.m. 1
2018-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Tuesday, September 11, 2018, 5:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The meeting was called to order at 5:35 p.m.
2. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Al Nederhood, President Marc Marcantonio, General Manager
Brooke Jones, Vice President Brett Barbre, Assistant General Manager
Andrew J. Hall Gina Knight, HR/Risk and Safety Manager
Phil Hawkins Annie Alexander, Executive Assistant/Board Secretary
DIRECTORS ABSENT ALSO PRESENT
J. Wayne Miller Andrew Gagen, General Counsel, Kidman Gagen Law LLP
3. PUBLIC COMMENTS
None.
General Manager Marc Marcantonio stated that only two Directors were available
to attend the workshop meeting scheduled Thursday, September 13, 2018 and
asked if the Directors present were available the following Tuesday afternoon
instead. The Board agreed to reschedule the workshop to Tuesday, September
18, 2018 at 4:00 p.m.
4. CLOSED SESSION
The meeting was adjourned to Closed Session at 5:37 p.m. All Directors in
attendance were present. Also present were HR/Risk and Safety Manager Gina
Knight and General Counsel Andrew Gagen.
4.1. Public Employee Performance Evaluation
Pursuant to Section 54957 of the California Government Code
Title: General Manager
HR/Risk and Safety Manager Knight left the Closed Session at 6:00 p.m.
Minutes of the YLWD Board of Directors Special Meeting Held September 11, 2018 at 5:30 p.m. 2
2018-XXX
General Manager Marc Marcantonio joined the Closed Session at 6:04 p.m.
The Board reconvened in Open Session at 6:35 p.m.
General Counsel Gagen stated that no action was taken during Closed Session
that was required to be reported under the Brown Act.
5. ADJOURNMENT
5.1. The meeting adjourned at 6:35 p.m.
Annie Alexander
Board Secretary
Minutes of the YLWD Board of Directors Regular Meeting Held September 11, 2018 at 6:30 p.m. 1
2018-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, September 11, 2018, 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.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Al Nederhood, President Marc Marcantonio, General Manager
Brooke Jones, Vice President Brett Barbre, Assistant General Manager
Andrew J. Hall John DeCriscio, Operations Manager
Phil Hawkins Gina Knight, HR/Risk and Safety Manager
Delia Lugo, Finance Manager
DIRECTORS ABSENT Rosanne Weston, Engineering Manager
J. Wayne Miller Annie Alexander, Exec Asst/Board Secretary
Mike Carreon, Facilities Maintenance Worker
Kaden Young, Management Analyst
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
John Kennedy, Exec Dir of Engineering Water Resources, Orange County Water Dist (OCWD)
Scott Maloni, Vice President - Project Development, Poseidon Water
Peer Swan, Director, Irvine Ranch Water District (IRWD)
4. ADDITIONS/DELETIONS TO THE AGENDA
None.
5. INTRODUCTIONS AND PRESENTATIONS
5.1. Elected Official Liaison Reports
None.
Minutes of the YLWD Board of Directors Regular Meeting Held September 11, 2018 at 6:30 p.m. 2
2018-XXX
5.2. Proposed Poseidon Resources Huntington Beach Ocean Desalination
Project
John Kennedy of OCWD provided some background information for the
project and a summary of the term sheet and project benefits. He then
reviewed a comparison of Poseidon and Metropolitan Water District of
Southern California’s (MET) projected costs, OCWD’s key remaining
tasks, and projected increases to the Replenishment Assessment, Basin
Production Percentage, and typical monthly residential water bill. Mr.
Kennedy also outlined five key elements of the distribution plan, OCWD’s
historical total water demands and projected water supply sources, and
potential future local water supply projects.
Scott Maloni of Poseidon reviewed the status of regulatory permits for the
project and displayed images of the existing site and conceptual design for
the plant. Mr. Maloni then reviewed the benefits of the project and policies
adopted by OCWD’s Board in support of same. He also provided an
overview of Poseidon’s risk allocation for the project.
Director Peer Swan reviewed IRWD’s perspectives on the project. This
included an overview of the cost of water from the project, MET’s Local
Resources Program (LRP), Orange County’s MET water supply without
Poseidon versus with Posieon and the LRP, and MET’s water supply
reliability. He then shared IRWD’s policy position on desalination.
President Nederhood declared a recess at 8:19 p.m.
The meeting was reconvened at 8:27 p.m.
6. PUBLIC COMMENTS
None.
7. CONSENT CALENDAR
Director Hawkins made a motion, seconded by Director Jones, to approve the
Consent Calendar. Motion carried 4-0-0-1 on a Roll Call vote with Director Miller
being absent.
7.1. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $720,103.08.
Minutes of the YLWD Board of Directors Regular Meeting Held September 11, 2018 at 6:30 p.m. 3
2018-XXX
7.2. Directors and General Manager Fees and Expenses Report for Fourth
Quarter of Fiscal Year 2018
Recommendation: That the Board of Directors receive and file the
Directors and General Manager Fees and Expenses Report for Fourth
Quarter of Fiscal Year 2018.
7.3. Revised Budgeted Positions for Remainder of Fiscal Year 2019 and
Amendments to the Memorandum of Understanding with the YLWD
Employees Association and Personnel Manual for Unrepresented
Employees
Recommendation: That the Board of Directors adopt Resolution No. 18-
27 ratifying the Budgeted Positions for the remainder of Fiscal year 2019
and rescinding Resolution No. 18-09; adopt Resolution No. 18-28
amending Exhibit A of the Memorandum of Understanding between the
District and the YLWD Employees Association for the remainder of Fiscal
Years 2019-2023; and adopt Resolution No. 18-29 amending Section 6.02
and Exhibit A of the Personnel Manual for Unrepresented Employees for
the remainder of Fiscal Years 2019-2023.
8. ACTION CALENDAR
8.1. Determination of Agency Designated Representative
Director Hall made a motion, seconded by Director Hawkins, to identify
Andrew Gagen as the District’s agency designated representative to
negotiate an amendment to the present employment agreement with the
General Manager in accordance with Government Code Section
54957.6(a). Motion carried 4-0-0-1 with Director Miller being absent.
9. DISCUSSION ITEMS
9.1. Status of Operations Activities
Staff reviewed the status of preventative maintenance and water leak
repair activities.
9.2. Cash and Investment Report for Period Ending July 31, 2019
Staff reviewed key information contained in this report.
Minutes of the YLWD Board of Directors Regular Meeting Held September 11, 2018 at 6:30 p.m. 4
2018-XXX
9.3. Annual Assessment of Governing Board Effectiveness
The Board discussed utilizing the same survey instrument as the previous
year and the meaning of certain phrases contained in questions 13 and
43. The Board requested management staff complete the survey as well.
10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1. Directors' Reports
None.
10.2. General Manager's Report
General Manager Marc Marcantonio asked each of the managers in
attendance to report on activities within their respective departments. He
then briefed the Board on upcoming conferences and events.
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
(Nederhood/Jones)
Minutes of the meeting held July 26, 2018 at 4:00 p.m. were
provided in the agenda packet.
Next meeting is scheduled September 27, 2018 at 4:00 p.m.
11.2. Joint Agency Committee with City of Yorba Linda
(Nederhood/Jones)
Minutes of the meeting held September 10, 2018 at 4:00 p.m. will
be provided when available.
Next meeting is yet to be scheduled.
Minutes of the YLWD Board of Directors Regular Meeting Held September 11, 2018 at 6:30 p.m. 5
2018-XXX
11.3. Joint Agency Committee with City of Placentia
(Nederhood/Jones)
Next meeting yet to be scheduled.
12. INTERGOVERNMENTAL MEETINGS
The Directors noted their attendance at the following meetings and events.
12.1. ISDOC Executive Committee – September 4, 2018 (Nederhood)
12.2. MWDOC Board – September 5, 2018 (Nederhood/Jones)
12.3. OCSD Operations Committee – September 5, 2018 (Hawkins)
12.4. OCWD Board – September 5, 2018 (Miller/Jones)
12.5 WACO – September 7, 2018 (Miller)
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from September 12 – November 30, 2018
The Board made no changes to the activity calendar.
14. CLOSED SESSION
The meeting was adjourned to Closed Session at 8:58 p.m. All Directors in
attendance were present. Also present was General Counsel Andrew Gagen.
14.1 Conference with Labor Negotiators
Pursuant to Section 54957.6 of the California Government Code
Agency Designated Representative: Andrew Gagen, General Counsel
Unrepresented Employee: General Manager
Minutes of the YLWD Board of Directors Regular Meeting Held September 11, 2018 at 6:30 p.m. 6
2018-XXX
The following Closed Session was not held.
14.2. Conference with Labor Negotiators
Pursuant to Section 54957.6 of the California Government Code
Agency Designated Representatives: Marc Marcantonio, General Manager
Brett Barbre, Asst General Manager
Gina Knight, HR/Risk and Safety Mgr
Vivian Lim, Human Resources Analyst
Employee Organization: YLWD Employees Association
The Board reconvened in Open Session at 9:18 p.m. General Counsel Gagen
stated that no action was taken during Closed Session that was required to be
reported under the Brown Act.
15. ADJOURNMENT
15.1. The meeting was adjourned at 9:18 p.m.
Annie Alexander
Board Secretary
ITEM NO. 7.3
AGENDA REPORT
Meeting Date: October 9, 2018 Budgeted:Yes
To:Board of Directors Cost Estimate:$2,432,746.16
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 $2,432,746.16.
DISCUSSION:
The items on this disbursement list include: a check of $48,229.77 to CalCard US Bank for August 2018
credit card transactions; a check of $74,405.62 to City of Anaheim for August 2018 electricity charges at
La Palma & Richfield Rd.; a check of $108,332.00 to City of Yorba Linda for road improvements, widening
& rehabilitation at Bastanchury Rd and La Palma Ave.; a check of $250,359.63 to ACWA/JPIA for Auto &
General Liability insurance premium; a wire of $13,988.83 to So. California Edison for August 2018
electricity charges at multiple locations; a wire of $7,667.10 to Liebert Cassidy Whitmore for August 2018
legal services; and a wire of $1,496,658.97 to US Bank for the 2017A Revenue Bond principal &
interest payment. The balance of $134,351.17 is for routine invoices.
The Accounts Payable check register total is $2,133,993.09 and Payroll No. 19 total is $298,753.07,
where the total of all listed disbursements for this agenda report is $2,432,746.16. 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:
18-CS_1009.pdf Cap Sheet Backup Material
CkReg100918.pdf Check Register Backup Material
18_CC_1009.pdf Credit Card Summary Backup Material
Summary of Disbursements
October 09, 2018
CHECK NUMBERS & WIRES:
Computer Checks 72979—73040 $ 615,678.19
____________
$ 615,678.19
WIRES:
W092118 So. California Edison $ 13,988.83
W092418A Liebert Cassidy Whitmore $ 7,667.10
W092718 US Bank N.A. $ 1,496,658.97
____________
$ 1,518,314.90
TOTAL OF CHECKS & WIRES $2,133,993.09
PAYROLL NO. 19:
Direct Deposits $ 184,200.51
Third Party Checks 7030—7041 $ 26,979.29
Payroll Taxes $ 49,149.02
EFT – CalPERS Payroll #19 $ 38,424.25
$ 298,753.07
TOTAL OF PAYROLLS $298,753.07
----------------------------------------------------------------------------------------------------------------------
DISBURSEMENT TOTAL: $2,432,746.16
==================================================================
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF OCTOBER 09, 2018
==================================================================.
Check No.Date Vendor Name Amount Description
72987 10/09/2018 ACWA/JPIA 4,485.00 JPIA LEADERSHIP - LUGO, KNIGHT & PADILLA
73040 10/09/2018 ACWA/JPIA 250,359.63 AUTO & GENERAL LIABILITY INSURANCE - 10/2018 - 10/2019
72980 10/09/2018 All American Asphalt 1,297.70 CUSTOMER REFUND
72988 10/09/2018 Aqua-Metric Sales Co.4,214.15 OPERATIONS WORK MATERIAL
72989 10/09/2018 Aramark 255.10 UNIFORM SERVICE
73039 10/09/2018 ARC 20.00 PW DOC MANAGEMENT
72990 10/09/2018 AT & T - Calnet3 4,204.47 AT&T CALNET3
72991 10/09/2018 Autoscribe Corporation 934.00 TRANSACTION VISION GATEWAY - AUGUST 2018
72992 10/09/2018 CalCard US Bank 48,229.77 CREDIT CARD TRANSACTIONS - AUGUST 2018
72993 10/09/2018 Carlos Murillo 188.00 REIMBURSEMENT - CWEA II MEMBERSHIP
72994 10/09/2018 Chambers Group Inc.4,172.00 J18-23 - HIDDEN HILLS MITIGATION
72995 10/09/2018 City Of Anaheim 74,405.62 LA PALMA & RICHFIELD -ELECTRICITY CHARGES- 8/09/18 -9/11/18
72996 10/09/2018 City Of Yorba Linda 108,332.00 BASTANCHURY & LA PALMA - ROAD IMPROVEMENT, WIDENING & REHABILITATION
72998 10/09/2018 Clark County Assessor 377.02 CLARK CITY NEVADA - PROPERTY TAX FY19
72997 10/09/2018 Cla-Val Co.2,672.86 CLA-VALVE PARTS
72999 10/09/2018 Clinical Lab. Of San Bern.2,940.00 WATER QUALITY SAMPLING
73000 10/09/2018 Coastal Ignition & Controls 989.72 WELL #7 - MAINTENANCE
73001 10/09/2018 Coastline Equipment 1,050.69 VEHICLE MAINTENANCE - UNIT #139 & #220
73002 10/09/2018 Culligan of Santa Ana 2,288.00 EQUIPMENT PE SOFTENER
73003 10/09/2018 Daniels Tire Service 2,211.64 VEHICLE MAINTENANCE - UNIT #166, #180, & #195
73004 10/09/2018 Dell Marketing L.P.12,148.50 OPTIPLEX DESKTOP & VLA WINDOWS SERVER
73006 10/09/2018 Enthalpy Analytical, Inc.2,810.00 WATER QUALITY SAMPLING
73007 10/09/2018 Fairway Ford Sales, Inc.135.97 VEH. MAINTENANCE - UNIT #187
73008 10/09/2018 Federal Express 15.96 SHIPPING FEES
72981 10/09/2018 FELIZ PADILLA 62.02 CUSTOMER REFUND
73009 10/09/2018 Haaker Equipment Co.937.50 VEHICLE MAINTENANCE - UNIT #197
72982 10/09/2018 HOME RANCH COMMUNITY CENTER LLC 333.48 CUSTOMER REFUND
73010 10/09/2018 Infosend Inc.13,829.04 BILLING & POSTAGE - CUSTOMER BILLING
73011 10/09/2018 Jackson's Auto Supply - Napa 252.85 VEHICLE MAINTENANCE - UNIT #176, #197 & #210
72984 10/09/2018 JAMES CROWLEY 163.41 CUSTOMER REFUND
73012 10/09/2018 Jon's Flags & Poles, Inc.157.69 US & CA FLAGS
73013 10/09/2018 KB Design 9,897.79 DISTRICT UNIFORMS
72983 10/09/2018 KELLE MORTENSEN 45.81 CUSTOMER REFUND
73014 10/09/2018 Konica Minolta Business 1,659.23 COPIER LEASE PAYMENT - C258 & C558
73015 10/09/2018 Lancab, Inc.2,293.75 CAT6 INSTALLATION
W092418A 09/24/2018 Liebert Cassidy Whitmore 7,667.10 LEGAL SERVICES - AUGUST 2018
73016 10/09/2018 Mc Fadden-Dale Hardware 233.67 HARDWARE SUPPLIES
73017 10/09/2018 Mc Master-Carr Supply Co.120.30 SUPPLIES - HIGHLAND #1
73018 10/09/2018 Murcal, Inc.280.59 MAINTENANCE - HIGHLAND #1
73019 10/09/2018 NatPay Online Business Solutions 27.03 DOCULIVERY - AUGUST 2018
73020 10/09/2018 Nickey Kard Lock Inc 5,500.19 FUEL - 09/01/18 - 09/15/18
73021 10/09/2018 Nickey Petroleum Co Inc 982.68 FLEET MAINTENANCE
73023 10/09/2018 P.T.I. Sand & Gravel, Inc.2,148.59 ROAD MATERIAL
73022 10/09/2018 Powerstride Battery 104.86 VEHICLE MAINTENACE - UNIT #195
73026 10/09/2018 Rachel Padilla/Petty Cash 56.22 PETTY CASH - O091918
73024 10/09/2018 Raftelis Financial Consultants, Inc.866.25 2018 WATER FINANCIAL PLAN UPDATE
73025 10/09/2018 Rootx 4,849.87 SEWER MAIN SUPPLIES
72979 10/09/2018 SANDRA GROELL 161.91 CUSTOMER REFUND
W092118 09/21/2018 So. California Edison 13,988.83 ELECTRICAL CHARGES - MULTIPLE LOCATIONS - AUGUST 2018
73027 10/09/2018 Stater Bros. Markets 73.52 MEETING SUPPLIES
73028 10/09/2018 Step Saver Inc 1,694.34 COARSE SALT
73029 10/09/2018 Sunstate Equipment Co 995.05 BOOM LIFT 60'
73030 10/09/2018 Switch Ltd 570.84 DATA HOSTING-CO-LOCATION
73031 10/09/2018 The Shredders 66.00 ON SITE SHRED SERVICE
73032 10/09/2018 Time Warner Cable 3,031.70 T10MB DEDICATED INTERNET & SPECTRUM BUSINESS TV
72985 10/09/2018 TONY LOPEZ 4.18 CUSTOMER REFUND
72986 10/09/2018 TWO UNITED OIL INC 359.57 CUSTOMER REFUND
W092718 09/27/2018 U S Bank 1,496,658.97 2017A BOND - INTEREST & PRINCIPAL - SEPTEMBER 2018
73033 10/09/2018 Underground Service Alert 392.80 DIGALERT - AUGUST 2018
73034 10/09/2018 United Industries 855.48 BREAKROOM SUPPLIES
73036 10/09/2018 United Water Works, Inc.10,735.08 OPERATIONS WORK MATERIAL
73035 10/09/2018 UNUM Life Insurance Co. of America 4,372.41 LIFE, AD&D, STD & LTD - OCTOBER 2018
73037 10/09/2018 Westside Building Material 208.18 MISCELLANOUS WAREHOUSE PARTS
Yorba Linda Water District
Check Register
For Checks Dated: 09/26/2018 thru 10/09/2018
73005 10/09/2018 White Nelson Diehl Evans LLP 17,000.00 PROFESSIONAL SERVICES - AUGUST 2018 - 2ND INSTALLMENT
73038 10/09/2018 YO Fire 1,616.51 OPERATIONS WORK MATERIAL
2,133,993.09
09-20-2018 PAYROLL #19 - EMPLOYEE DIRECT DEPOSIT 184,200.51
09-20-2018 PAYROLL #19 - PAYROLL TAX PAYMENT 49,149.02
09-20-2018 PAYROLL #19 - CALPERS EFT 38,424.25
7030 09-20-2018 VOID 0.00
7031 09-20-2018 FLEX ADVANTAGE 2,479.09
7032 09-20-2018 LINCOLN FINANCIAL GROUP 4,966.93
7033 09-20-2018 NATIONWIDE RETIREMENT SOLUTIONS 14,945.41
7034 09-20-2018 CA STATE DISBURSEMENT UNIT 366.92
7035 09-20-2018 CA STATE DISBURSEMENT UNIT 339.69
7036 09-20-2018 CA STATE DISBURSEMENT UNIT 384.92
7037 09-20-2018 AMERICAN HERITAGE LIFE 1,447.09
7038 09-20-2018 MIDLAND LIFE INSURANCE 200.00
7039 09-20-2018 RELIANCE DI 57.46
7040 09-20-2018 AMERITAS 1,684.68
7041 09-20-2018 COLONIAL LIFE 107.10
298,753.07
Payroll Checks #19
Vendor Name Amount Description
South Point Hotel 107.35 Travel expense -Tri-State seminar -DeCriscio, J
CalCard US Bank (171.27)Return of mechanic shop tool
County of Orange 6.00 Travel expense - meeting with OC Public Works - DeCriscio
Energy Environmental Soln, Inc 2,400.00 Emission test - Valley View Engine
Polly's Pies 56.96 All Hands meeting - 08/09/18
Amazon.com 101.98 Nighstick flashlight - 4 pack
Harrington Industrial 180.02 Production parts for CL2 work
Red Wing Shoe Store 247.81 Safety boot - Arnado, B
Red Wing Shoe Store 247.81 Safety boot - Martinez, J
FTP Today 1,188.00 ylwd.ftptoday.com - annual renewal - 8/2018-08/2019
Time Warner Cable 2,845.38 Time Warner Cable
Thai Lingo Restaurant 78.10 Lunch meeting - Accounting staff - (5) attendees
Red Wing Shoe Store 4,723.48 Safety boots - Yorba Linda District employees
Harrington Industrial 147.13 Production repair - CL2 parts
Imperial Sprinkler Supply,Inc.156.21 Tools - PVC Cutter, blades & shovels
ComplianceSigns, Inc.62.50 GHS labels for production facility & equipment
United Limousine & Charter Inc.99.00 Deposit - Tour Bus on 09/22/18
Orchard Supply Hardware 34.47 Sun & shade pop-up
AWWA - CA-NV Section 153.50 Water Distribution Grade D1 - Publications - 4 books
Amazon.com 137.99 Trimble recon battery charger
AWWA 91.50 AWWA M3 safety management for utilities
County of Orange 8.00 Parking - LAFCO meeting - Dir. Nederhood
Placentia Disposal #676 555.38 Placentia Disposal
Amazon.com 40.45 (2) quick coupler
Harrington Industrial 362.04 Production repair - CL2 parts
Westin Hotels & Resorts 232.16 AWWA CA/NV Fall Conference
Pinnacle Seating 1,645.00 Office chair - Engineering Manager
Harbor Freight Tools 194.95 Tools for sewer crew
Staples 1,283.02 Printer ink supplies - Operations
Best Value Tire & Wheel 47.27 Vehicle maintenance - Unit #180
AutoZone 25.84 (2) Oil absorbent
Amazon.com 181.66 Laptop docking station - Unit #205
Harrington Industrial 34.74 Production repair - CL2 parts
Home Depot 63.00 Hardware supplies
Mobile Industrial Supply 58.19 (2) 50lbs of CO2
Verizon Wireless 4,329.19 Verizon Wireless
ONLINE Information Services, Inc.621.37 Online Collections
Dunkin Donuts 11.49 Business meeting supplies - Auditors
Hilton San Diego 20.00 Travel expense - UWI Conference - Dir. Nederhood
Hilton San Diego 19.74 Travel expense - UWI Conference - Dir. Jones
Home Depot 89.91 Hardware supplies - concrete repair
Amazon.com 99.39 Ergodriven - Anti-fatigue mat
Chameleon Beverage Company, Inc.16,075.40 YLWD bottle water - district events
Boot World Inc.581.78 Safety boots - Yorba Linda District employees
AWWA 81.50 M44 Manual - Distribution valves
B & M Lawn and Garden Inc 198.55 Landscape supplies
Orchard Supply Hardware 13.57 Gopher bait & tools
9-Oct-18
Cal Card Credit Card
U S Bank
Hilton San Diego 231.02 Travel expense - UWI Conference - Dir. Nederhood
Hilton San Diego 251.02 Travel expense - UWI Conference - Dir. Jones
Flappy Jacks 62.87 Breakfast meeting - (4) attendees
Home Depot 128.98 Hardware supplies & tools
Village Nurseries 398.08 SOD for landscape repairs
Red Wing Shoe Store 204.71 Safety boots - Diaz, J
Shred Confidential, Inc.664.50 Secure hard drive destruction
Industrial Hearing 320.00 Audiometric testing, Medical clearance & fit test
Orange County Water Assn 45.00 OCWA - Operator training
Answer One Communications 699.60 Virtual reception service - After hours
Orchard Supply Hardware 24.23 Facilities supplies
Concrete Fastening 135.77 (2) boxes of strike anchors
UPS Freight 91.63 RMA to ship cables & power supply
Amazon.com 96.96 Service recognition award
Dan Copp Crushing Corp.240.00 Road material disposal
UPS Freight 59.59 Equipment shipment to co-location
El Farolito 43.89 Lunch meeting - (3) attendees
Water Education Foundation 100.00 WEF Membership - Dir. Nederhood
ACWA-Assn Of Ca Water Agencies 50.00 ACWA Region 10 - Registration - Dir. Nederhood
Yorba Linda Chamber 100.00 Yorba Linda Mayor Prayer Breakfast - Registration
United Rentals - Fullerton 328.38 Rental of concrete trailer & concrete mix
Dan Copp Crushing Corp.500.00 Road material disposal
Amazon.com 6.18 Service recognition award
Amazon.com 19.22 Service recognition award
Cal Municipal Treasurers Assn 25.00 Certified California Municipal Treasurer - Application fee
Steven Enterprises 103.46 Printer supplies - Engineering
Light Bulbs Etc 38.68 Electrical supplies - light fixtures
Anaheim Public Works 510.00 Annual encrochment permit
Harrington Industrial 21.59 Production repair - CL2 parts
Southwest Airlines 167.92 Travel expense -NEOGOV Conference- Segura, J & Lim, V
Water Education Foundation 300.44 WEF Conference - Registration - Dir. Nederhood
Caesars Las Vegas 146.26 Travel expense - CRWUA Conference - Dir. Nederhood
ACWA-Assn Of Ca Water Agencies 50.00 Travel expense - ACWA Region 10 - Dir. Jones
ACWA-Assn Of Ca Water Agencies 50.00 Travel expense - ACWA Region 10 - Marcantonio, M
Caesars Las Vegas 146.26 Travel expense - CRWUA Conference - Marcantonio, M
Praxair Distribution 47.77 Welding supplies
Home Depot 131.33 Hardware supplies & tools
Amazon.com 50.00 Service recognition gift
Smart & Final 29.54 Meeting supplies
Smart & Final 209.19 Emergency response meals
Smart & Final 10.82 Snacks for interview panel
Canva Pty Ltd.12.95 Graphic design subscription
National Notary Association 33.00 Errors & Omissions Notary Insurance - Alexander, A
Southwest Airlines 305.96 Travel expense - WEF Water Summit - Dir. Nederhood
Colorado River Water User Association 505.00 Registration & membership - CRWUA Conference - Marcantonio, M
Smart & Final 51.56 All hands meeting supplies
Jet Blue 102.20 Travel expense - CSDA Board Secretary Conference - Alexander, A
Fry's Electronics 86.18 Fry's Electronics
Renaissance Esmerelda Resort & Spa 193.98 Travel expense - CSDA Conference - Dir. Nederhood
OfficeSupply.com 35.98 Mousepad and (2) wrist rests
Grainger 295.56 Electrical supplies - facilities
48,229.77
ITEM NO. 8.1
AGENDA REPORT
Meeting Date: October 9, 2018
To:Board of Directors
From:Andrew B. Gagen, General
Counsel
Subject:Establishing Procedure for the Presentation of Claims Not Covered by the
Government Claims Act
STAFF RECOMMENDATION:
That the Board of Directors adopt Ordinance No. 18-01 establishing a Local Claims Ordinance and
delegating authority to the General Manager to resolve small claims.
DISCUSSION:
Presentation of Claims Under the Government Claims Act
Under the Government Claims Act (“Claims Act”), before a lawsuit for “money or damages” can be
filed against a public agency such as the District, a claim must be presented to the public agency
describing the facts, the nature of the damages, and the estimated amount of damages. The time
limit for presenting a claim under the Act (“Claims Period”) is either six months or twelve months
after the alleged event, depending on the type of claim (e.g. personal injury versus breach of
contract). These presentation requirements help to “ensure prompt claims investigation and
possible settlement, enabling the public entity to make appropriate fiscal adjustments and provide
the opportunity to avoid future liability by taking remedial steps to prevent a reoccurrence.” [1]
Any lawsuit based on a presented claim must be commenced within six months after the District
gives notice of its rejection of the claim. Failure to present a claim prior to filing a lawsuit is fatal to
the lawsuit.
Claims Exempted from the Claims Act and Governed by this Ordinance
The Claims Act expressly exempts certain claims from these presentation requirements because
many of them have procedures already provided for them in other statutes. So, a claimant may sue
on these exempted claims without first presenting the claim - so long as the lawsuit is filed within the
applicable statute of limitations (e.g. 2 years, 3 years, 4 years). However, the Claims Act provides
public agencies the opportunity to remove this exemption.
Accordingly, the proposed Local Claims Ordinance lists most of these exempted claims to be
governed by the Ordinance. This governance requires these claims to be presented in a certain
manner to the District and within six or twelve months of the alleged event, depending on the type of
claim. Otherwise, the Ordinance authorizes the District to deny deficient and/or untimely claims.
For sufficient and timely claims that are listed in the Ordinance, the District’s exposure would be
limited to only six or twelve months of damages versus 2 years, 3 years, 4 years, depending on the
type of claim. Again, these presentation requirements, including a shorter Claims Period, promote
prompt claims investigation and possible settlement, enable the District to budget appropriately, and
encourage remedial steps to prevent a reoccurrence.
Authority Delegated to the General Manager to Resolve Small Claims
The Claims Act also authorizes the delegation of certain Board authority to a District employee,
including the General Manager, for the limited purpose of resolving any claim up to $50,000.
Notably, though, the Ordinance requires the General Manager to report resolution of any such claim
to the Board and the Board retains all non-delegated authority under the Claims Act. Similar to
above, this delegation of authority promotes efficiency within the District, particularly where District
liability is clear and the claim amount is reasonable.
[1] Cal School Employees Assn. v. Governing Bd. of So. Orange Co. Comm. College District (2004)
124 Cal.App.4th 574, 589.
ATTACHMENTS:
Name:Description:Type:
Ordinance_No._18-01_-_Local_Claims.docx Ordinance Ordinance
Ordinance No. 18-01 Establishing a Local Claims Ordinance 1
ORDINANCE NO. 18-01
ORDINANCE OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ESTABLISHING A LOCAL CLAIMS ORDINANCE AND
DELEGATING AUTHORITY TO THE GENERAL MANAGER
TO RESOLVE SMALL CLAIMS
WHEREAS, presentation of claims against California public entities and public
employees is generally governed by the Government Claims Act at
California Government Code §§ 810 et seq. (“Claims Act”); and
WHEREAS, Government Code § 935 authorizes local public entities to establish claims
presentation procedures for certain claims not governed by the Claims Act;
and
WHEREAS, Government Code § 935.4 authorizes the Board of Directors to delegate
authority to the General Manager to perform certain functions of the Board
of Directors under the Claims Act; and
WHEREAS, it is in the public interest for the District to establish a procedure for the
presentation of claims for money or damages against the District regarding
certain claims not covered by the Claims Act; and
WHEREAS, it is in the public interest to delegate authority to the District’s General
Manager to perform certain functions of the Board of Directors under the
Claims Act and this Ordinance.
NOW, THEREFORE BE IT ORDAINED, by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. Claims Governed by This Ordinance
Claims against the District for money or damages that are not governed
either by the Claims Act or other state law shall be governed by this
Ordinance. Aside from all claims governed by Section 4, the claims
governed by this Ordinance are:
A. Claims under the Revenue and Taxation Code or other statute
prescribing procedures for the refund, rebate, exemption,
cancellation, amendment, modification, or adjustment of any tax,
assessment, fee, or charge or any portion thereof, or of any
penalties, cost or charges related thereto;
B. Claims by public employees for fees, salaries, wages, or other
expenses and allowances;
Ordinance No. 18-01 Establishing a Local Claims Ordinance 2
C. Claims for which workers’ compensation authorized by Division 4
(commencing with Section 3200) of the Labor Code is the exclusive
remedy;
D. Applications or claims for any form of public assistance under any
provision of law relating to public assistance programs, and claims
for goods, services, provisions, or other assistance rendered for or
on behalf of any recipient of any form of public assistance;
E. Applications or claims for money or benefits under any public
retirement or pension system;
F. Claims for principal or interest upon any bonds, notes, warrants, or
other evidences of indebtedness;
G. Claims by the state or by a state department or agency or by another
local public entity or by a judicial branch entity;
H. Claims arising under any provision of the Unemployment Insurance
Code, including, but not limited to, claims for money or benefits, or
for refunds or credits of employer or worker contributions, penalties,
or interest, or for refunds to workers of deductions from wages in
excess of the amount prescribed; and
I. Claims for the recovery of penalties or forfeitures made pursuant to
Article I (commencing with Section 1720) of Chapter 1 of Part 7 of
Division 2 of the Labor Code.
Section 2. Claim Presentation Requirements
The claims listed in Section 1 must comply with the claim presentation
requirements of the Claims Act and shall be presented within the time and
manner prescribed by Part 3 of Division 3.6 of Title 1 of the California
Government Code (commencing with Section 900 thereof), as those
provisions now exist or may be hereafter amended.
Section 3. Legal Action Requirements
A. Prerequisite to a Legal Action. Prior to filing a legal action on a
claim in Section 1, the claim must be presented as required under
this Ordinance and acted upon by the District according to law,
including the Claims Act. No legal action may be maintained by a
person or entity who has not complied with the requirements of this
Ordinance.
Ordinance No. 18-01 Establishing a Local Claims Ordinance 3
B. Requirements to Bring a Legal Action. Any legal action brought
against the District on a claim in Section 1 must conform to the
requirements in Government Code Sections 940-949. Any legal
action brought against any employee of the District on a claim in
Section 1 must conform to the requirements in Sections 940-944 and
950-951 of the Government Code.
Section 4. Delegation to General Manager of Certain Board Authority.
A. Pursuant to Government Code Section 935.4, the District’s General
Manager is authorized and directed to perform all functions of the
Board of Directors under the Claims Act to allow, compromise or
settle any claim, including but not limited to the claims in Section 1,
against the District up to fifty thousand dollars ($50,000).
B. After the claim is resolved and the agreement memorializing the
settlement is fully executed by all parties to the claim, the General
Manager shall report resolution of the claim to the Board during an
open session of a District Board meeting.
C. Except as expressly delegated to the General Manager herein, the
Board of Directors shall retain and exercise all authority under the
Claims Act.
Section 5. General Provisions
A. Severability. If any portion of this Ordinance is held to be invalid by
decision of any court, such decision will not affect the validity of the
remaining portions of this Ordinance. The District hereby declares
that it would have adopted this ordinance irrespective of whether any
portion is declared invalid.
B. Effective Date. The Secretary of the Board shall certify adoption of
this Ordinance and shall cause the Ordinance to be published within
15 days of adoption and in a manner according to law. This
Ordinance shall take effect 30 days after adoption.
PASSED AND ADOPTED this 9th day of October 2018 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Al Nederhood, President
Yorba Linda Water District
Ordinance No. 18-01 Establishing a Local Claims Ordinance 4
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
ITEM NO. 8.2
AGENDA REPORT
Meeting Date: October 9, 2018
To:Board of Directors
From:Marc Marcantonio, General
Manager
Prepared By:Annie Alexander, Executive
Assistant
Subject:Amending the District's Conflict of Interest Code
STAFF RECOMMENDATION:
That the Board of Directors approve Resolution No. 18-31 adopting a Conflict of Interest Code which
supersedes all prior Conflict of Interest Codes and amendments previously adopted.
DISCUSSION:
In compliance with Section 81000 et. seq. of the California Government Code, the Board of Directors has
adopted a Conflict of Interest Code (Code) governing the disclosure of financial interests by certain
designated employees of the District.
The Political Reform Act requires every local government agency to review its code on a biennial basis.
Staff recently reviewed the District's code and has identified the following minor revisions:
The position of Communications Manager was eliminated.
The position of Customer Service Supervisor was renamed to Customer Service Billing Administrator.
The position of Water Maintenance Superintendent was renamed to Maintenance Superintendent.
The position of Operations/Warehouse Assistant was renamed to Operations Assistant.
The position of Chief Water System Operator was renamed to Operations Superintendent.
The position of Water Quality Engineer was renamed to Principal Engineer.
The position of Water Production Superintendent was renamed to Production Superintendent.
The position of Associate Engineer was renamed to Senior Engineer.
The position of Finance Manager (Treasurer) was renamed to Finance Manager.
The position of General Manager (Secretary) was renamed to General Manager.
Following adoption by the Board, a copy of the Resolution and updated Code must be submitted for review
and approval by the Orange County Board of Supervisors, after which it will be considered in effect.
PRIOR RELEVANT BOARD ACTION(S):
The District's Conflict of Interest Code was last updated on December 8, 2016 by Resolution No. 16-22.
ATTACHMENTS:
Name:Description:Type:
Resolution_No._18-31_-_YLWD_COI.docx Resolution Resolution
YLWD_COI.pdf Exhibit Exhibit
Resolution No. 18-31 Adopting a Conflict of Interest Code 1
RESOLUTION NO. 18-31
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING A CONFLICT OF INTEREST CODE WHICH
SUPERSEDES ALL PRIOR CONFLICT OF INTEREST CODES
AND AMENDMENTS PREVIOUSLY ADOPTED
WHEREAS, the Political Reform Act of 1974, Government Code Section 81000 et. seq.
(“the Act”), requires a local government agency to adopt a Conflict of
Interest Code pursuant to the Act; and
WHEREAS, the Yorba Linda Water District has previously adopted a Conflict of Interest
Code and that Code now requires updating; and
WHEREAS, amendments to the Act have in the past and foreseeably will in the future
require conforming amendments to be made to the Conflict of Interest Code;
and
WHEREAS, the Fair Political Practices Commission has adopted a regulation, Title 2,
California Code of Regulations, Section 18730, which contains terms for a
standard model Conflict of Interest Code, which, together with amendments
thereto, may be adopted by public agencies and incorporated by reference
to save public agencies time and money by minimizing the actions required
of such agencies to keep their codes in conformity with the Political Reform
Act.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. The terms of Title 2, California Code of Regulations, Section 18730
(Attachment A) and any amendments to it duly adopted by the Fair Political
Practices Commission are hereby incorporated by reference and, together
with Exhibits A and B in which members and employees are designated and
Resolution No. 18-31 Adopting a Conflict of Interest Code 2
disclosure categories are set forth, constitute the Conflict of Interest Code
of the Yorba Linda Water District.
Section 2. The provisions of all Conflict of Interest Codes and Amendments thereto
previously adopted by the Yorba Linda Water District are hereby
superseded.
Section 3. The Filing Officer is hereby authorized to forward a copy of this Resolution
to the Clerk of the Orange County Board of Supervisors for review and
approval by the Orange County Board of Supervisors as required by
California Government Code Section 87303.
PASSED AND ADOPTED this 9th day of October 2018 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Al Nederhood, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 18-31 Adopting a Conflict of Interest Code 3
ATTACHMENT A
CONFLICT OF INTEREST CODE FOR THE
YORBA LINDA WATER DISTRICT
The Political Reform Act, Government Code Sections 81000, et seq., requires state and
local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair
Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Section
18730) which contains the terms of a standard Conflict of Interest Code, which may be
incorporated by reference in an agency’s code. After public notice and hearing it may be
amended by the Fair Political Practices Commission to conform to amendments in the
Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section
18730 and any amendments to it duly adopted by the Fair Political Practices Commission
are hereby incorporated by reference. This regulation and the attached Appendix
designating officials and employees and establishing disclosure categories, shall
constitute the Conflict of Interest Code of the Yorba Linda Water District.
Designated employees shall file statements of economic interests with the Yorba Linda
Water District’s Political Reform Act Filing Officer, Board Secretary, who will make the
statements available for public inspection and reproduction (Government Code Section
82008).
Upon receipt of the statements of Members of the Board of Directors, General Manager,
Assistant General Manager, Finance Manager, General Counsel, Labor Counsel,
Construction Project Supervisor, Customer Service Billing Administrator, Engineering
Manager, Human Resources/Risk and Safety Manager, Information Systems
Administrator, Information Technology Manager, Maintenance Superintendent,
Management Analyst, Operations Assistant, Operations Manager, Operations
Superintendent, Principal Engineer, Production Superintendent, Senior Accountant,
Senior Engineer, Senior Fleet Mechanic, and Senior Project Manager, the Yorba Linda
Water District’s Filing Officer shall make and retain a copy and forward the original of
these statements to the Clerk of the Orange County Board of Supervisors as the Filing
Officer for these designated positions.
Statements for all other designated positions will be retained by the Yorba Linda Water
District’s Filing Officer.
Conflict of Interest Code
EXHIBIT A (Working Draft)
Entity:Water Districts
Yorba Linda Water DistrictAgency:
StatusFiles WithDisclosure
CategoryPosition
Reason: This position has been eliminated.
DeletedCOBOC-41Communications Manager
UnchangedCOBOC-05Construction Project Supervisor
UnchangedAgencyOC-30Consultant
Reason: Position of Customer Service Supervisor was renamed to Customer Service Billing Administrator.
RenamedCOBOC-05Customer Service Billing Administrator
UnchangedCOBOC-41Engineering Manager
UnchangedCOBOC-01General Counsel
UnchangedCOBOC-41Human Resources/Risk and Safety Manager
UnchangedCOBOC-05Information Systems Administrator
UnchangedCOBOC-41Information Technology Manager
UnchangedCOBOC-01Labor Counsel
Reason: Position of Water Maintenance Superintendent was renamed to Maintenance Superintendent.
RenamedCOBOC-05Maintenance Superintendent
UnchangedCOBOC-05Management Analyst
Reason: Position of Operations/Warehouse Assistant was renamed to Operations Assistant.
RenamedCOBOC-05Operations Assistant
UnchangedCOBOC-41Operations Manager
Reason: Position of Chief Water System Operator was renamed to Operations Superintendent.
RenamedCOBOC-05Operations Superintendent
Reason: Position of Water Quality Engineer was renamed to Principal Engineer.
RenamedCOBOC-05Principal Engineer
Reason: Position of Water Production Superintendent was renamed to Production Superintendent.
RenamedCOBOC-05Production Superintendent
UnchangedCOBOC-05Senior Accountant
Reason: Position of Associate Engineer was renamed to Senior Engineer.
RenamedCOBOC-05Senior Engineer
UnchangedCOBOC-05Senior Fleet Mechanic
UnchangedCOBOC-05Senior Project Manager
Total: 21
Run date/time: Tuesday, October 02 2018 02:18:45 PM Page 1 of 2
Conflict of Interest Code
EXHIBIT A (Working Draft)
Entity:Water Districts
Yorba Linda Water DistrictAgency:
OFFICIALS WHO ARE SPECIFIED IN GOVERNMENT CODE SECTION 87200
Officials who are specified in Government Code section 87200 (including officials who manage public investments, as
defined by 2 Cal. Code of Regs. § 18700.3 (b)), are NOT subject to the Agency’s Conflict of Interest Code, but are
subject to the disclosure requirements of the Political Reform Act, Government Code section 87100, et seq. Gov’t Code §
87203. These positions are listed here for informational purposes only.
The positions listed below are officials who are specified in Government Code section 87200:
UnchangedCOBFiles with
Reason: Office of Treasurer is appointed by the Board of Directors and is not part of the position's title.
RenamedCOBFiles with
Assistant General Manager
Finance Manager
RenamedGeneral Manager Files with COB
Reason: Office of Secretary is appointed by the Board of Directors and is not part of the position's title.
Member of the Board of Directors Files with COB Unchanged
The disclosure requirements for these positions are set forth in Government Code section 87200, et. seq. They require the
disclosure of interests in real property in the agency’s jurisdiction, as well as investments, business positions and sources
of income (including gifts, loans and travel payments).
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Disclosure Descriptions
EXHIBIT B (Working Draft)
StatusDisclosure DescriptionDisclosure Category
Water Districts
Yorba Linda Water District
Entity:
Agency:
Unchanged
Form 87200 filers shall complete all schedules for Form 700 and disclose all
reportable sources of income, interests in real property, investments and business
positions in business entities, if applicable, pursuant to Government Code Section
87200 et seq..
87200 Filer
Unchanged
All interests in real property in Orange County, the authority or the District as
applicable, as well as investments, business positions and sources of income
(including gifts, loans and travel payments).OC-01
Unchanged
All investments in, business positions with and income (including gifts, loans and
travel payments) from sources that provide services, supplies, materials, machinery,
equipment (including training and consulting services) used by the County
Department, Authority or District, as applicable.
OC-05
Unchanged
Consultants shall be included in the list of designated employees and shall disclose
pursuant to the broadest category in the code subject to the following limitation: The
County Department Head/Director/General Manager/Superintendent/etc. may
determine that a particular consultant, although a “designated position,” is hired to
perform a range of duties that is limited in scope and thus is not required to fully
comply with the disclosure requirements in this section. Such written determination
shall include a description of the consultant’s duties and, based upon that description,
a statement of the extent of disclosure required. The determination of disclosure is a
public record and shall be filed with the Form 700 and retained by the Filing Officer
for public inspection.
OC-30
Unchanged
All interests in real property in Orange County, the District or Authority, as applicable,
as well as investments in, business positions with and income (including gifts, loans
and travel payments) from sources that provide services, supplies, materials,
machinery, vehicles, or equipment (including training and consulting services) used
by the County Department, Authority or District, as applicable.
OC-41
Grand Total: 5
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Conflict of Interest Code
EXHIBIT A (Working Draft)
Entity:Water Districts
Yorba Linda Water DistrictAgency:
Files WithDisclosure
CategoryPosition
COBOC-05Construction Project Supervisor
AgencyOC-30Consultant
COBOC-05Customer Service Billing Administrator
COBOC-41Engineering Manager
COBOC-01General Counsel
COBOC-41Human Resources/Risk and Safety Manager
COBOC-05Information Systems Administrator
COBOC-41Information Technology Manager
COBOC-01Labor Counsel
COBOC-05Maintenance Superintendent
COBOC-05Management Analyst
COBOC-05Operations Assistant
COBOC-41Operations Manager
COBOC-05Operations Superintendent
COBOC-05Principal Engineer
COBOC-05Production Superintendent
COBOC-05Senior Accountant
COBOC-05Senior Engineer
COBOC-05Senior Fleet Mechanic
COBOC-05Senior Project Manager
Total: 20
OFFICIALS WHO ARE SPECIFIED IN GOVERNMENT CODE SECTION 87200
Officials who are specified in Government Code section 87200 (including officials who manage public investments, as
defined by 2 Cal. Code of Regs. § 18700.3 (b)), are NOT subject to the Agency’s Conflict of Interest Code, but are
subject to the disclosure requirements of the Political Reform Act, Government Code section 87100, et seq. Gov’t Code §
87203. These positions are listed here for informational purposes only.
The positions listed below are officials who are specified in Government Code section 87200:
COBFiles withAssistant General Manager
COBFiles withFinance Manager
COBFiles withGeneral Manager
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Conflict of Interest Code
EXHIBIT A (Working Draft)
Entity:Water Districts
Yorba Linda Water DistrictAgency:
COBFiles withMember of the Board of Directors
The disclosure requirements for these positions are set forth in Government Code section 87200, et. seq. They require the
disclosure of interests in real property in the agency’s jurisdiction, as well as investments, business positions and sources
of income (including gifts, loans and travel payments).
Run date/time: Tuesday, October 02 2018 02:18:46 PM Page 2 of 2
Disclosure Descriptions
EXHIBIT B (Working Draft)
Disclosure DescriptionDisclosure Category
Water Districts
Yorba Linda Water District
Entity:
Agency:
Form 87200 filers shall complete all schedules for Form 700 and disclose all
reportable sources of income, interests in real property, investments and business
positions in business entities, if applicable, pursuant to Government Code Section
87200 et seq..
87200 Filer
All interests in real property in Orange County, the authority or the District as
applicable, as well as investments, business positions and sources of income
(including gifts, loans and travel payments).OC-01
All investments in, business positions with and income (including gifts, loans and
travel payments) from sources that provide services, supplies, materials, machinery,
equipment (including training and consulting services) used by the County
Department, Authority or District, as applicable.
OC-05
Consultants shall be included in the list of designated employees and shall disclose
pursuant to the broadest category in the code subject to the following limitation: The
County Department Head/Director/General Manager/Superintendent/etc. may
determine that a particular consultant, although a “designated position,” is hired to
perform a range of duties that is limited in scope and thus is not required to fully
comply with the disclosure requirements in this section. Such written determination
shall include a description of the consultant’s duties and, based upon that description,
a statement of the extent of disclosure required. The determination of disclosure is a
public record and shall be filed with the Form 700 and retained by the Filing Officer
for public inspection.
OC-30
All interests in real property in Orange County, the District or Authority, as applicable,
as well as investments in, business positions with and income (including gifts, loans
and travel payments) from sources that provide services, supplies, materials,
machinery, vehicles, or equipment (including training and consulting services) used
by the County Department, Authority or District, as applicable.
OC-41
Grand Total: 5
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ITEM NO. 8.3
AGENDA REPORT
Meeting Date: October 9, 2018
To:Board of Directors
From:Marc Marcantonio, General
Manager
Prepared By:Annie Alexander, Executive
Assistant
Subject:Election of Independent Special District of Orange County (ISDOC) Officers
STAFF RECOMMENDATION:
That the Board of Directors instruct the President or alternate Director to cast the District's ballot in
this election.
DISCUSSION:
ISDOC is conducting a vote of Regular Special District Members for its election of officers.
Currently, there are two nominations each for the positions of President and First Vice President
(Programs). Only one candidate was nominated for the positions of Second Vice President, Third
Vice President and Treasurer. As such, these candidates shall be deemed selected in accordance
with ISDOC's bylaws. As there were no nominations for the position of Secretary, the
ISDOC Executive Committee will either fill the vacancy by appointment or call for a special election
within the first 60 days of 2019.
The names of the candidates are listed on the attached ballot. Each Regular Member District in
good standing is entitled to one vote which must be cast (signed) by the District's presiding officer or
an alternate selected by its Board of Directors.
Ballots must be received by 5:00 p.m. on Tuesday, October 23, 2018 in order to be counted. The
names of the elected officers will be announced at the quarterly meeting on October 25, 2018.
ATTACHMENTS:
Name:Description:Type:
ISDOC_Election.pdf Backup Material Backup Material
September 21, 2018
RE: Election of Independent Special Districts of Orange County (ISDOC)
Officers
Dear Member Districts,
The nomination period for Executive Committee officer positions closed on September
18th, 2018. At this time, ISDOC is conducting a vote of Regular Special District
Members for the election of officers. This letter serves as official notice of the election.
The names of nominated candidates are printed on the ballot. Please vote for one
candidate per seat.
The Executive Committee meets at 7:30 am on the first Tuesday of the month.
Meetings are open to the public. Duties of Executive Committee members are
contained in the ISDOC bylaws, which may be found at the ISDOC website -
http://www.mwdoc.com/ISDOC.
Each Regular Member District in good standing shall be entitled to one vote. In
accordance with current bylaws, the vote must be cast (signed) by the district's
presiding officer or an alternate selected by the district board.
You may submit your ballot via mail or email to Heather Baez: P.O. Box 20895,
Fountain Valley, CA 92728 (mail) or hbaez@mwdoc.com (email). Ballots must be
received by 5:00 p.m. on Tuesday, October 23, 2018 in order to be counted. Even
if positions are uncontested, it is important to submit a ballot since a quorum of
voting members is required for the election of officers.
The names of officers elected will be announced at the October 25th quarterly meeting.
If you have any questions or wish to discuss the election process further, please contact
Heather Baez (MWDOC) at hbaez@mwdoc.com or (714) 593-5012.
Sincerely,
James Fisler, James R. Fisler, President
Independent Independent Special Districts of Orange County
Enclosed: Ballot for ISDOC Election of Officers
Candidates’ Statements
Mailing Address
P.O. Box 20895
Fountain Valley, CA 92728
Meeting Location
MWDOC/OCWD
18700 Ward Street
Fountain Valley, CA 92708
(714) 963-3058
(714) 964-5930 fax
www.mwdoc.com/isdoc
Executive Committee
President Hon. James Fisler
Mesa Water District
1st Vice President Hon. Saundra Jacobs
Santa Margarita Water District 2nd Vice President Hon. Mark Monin
El Toro Water District
3rd Vice President Hon. Mary Aileen Matheis
Irvine Ranch Water District Secretary Hon. Doug Davert
East Orange County Water District Treasurer Hon. Joan C. Finnegan
Municipal Water District of
Orange County
Immediate Past President Hon. Mike Scheafer
Costa Mesa Sanitary District
Staff Administration
Heather Baez
Municipal Water District of Orange
County
Sylvia Prado
East Orange County Water
District
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY
ELECTION OF OFFICERS
The ISDOC Executive Committee consists of the President, First Vice President, Second Vice President, Third Vice
President, Secretary, Treasurer and Immediate Past President. Officers are elected in October of even numbered years
for two year terms. Please vote for one candidate per seat.
The ISDOC bylaws indicate, “At the end of the nominating period if only one candidate is nominated for a vacant seat,
that candidate shall be deemed selected.” This is the case for the Second Vice President, Third Vice President and
Treasurer positions, therefore they are not on the ballot. Arlene Schafer from Costa Mesa Sanitary District, Mary Aileen
Matheis from Irvine Ranch Water District and Joan Finnegan from Municipal Water District of Orange County,
respectfully, have been selected to these seats. As there were no nominations for the Secretary position, the ISDOC
Executive Committee will either fill the vacancy by appointment or call for a special election within the first sixty days
of 2019.
Cast your Vote: Please cast your vote for the remaining seats by placing an “X” on the line next to the individual for
which you wish to vote in each position. If you are writing in a candidate, please include their district affiliation and
position. THE SIGNATURE PAGE IS ON THE REVERSE SIDE OF THE BALLOT. IT MUST BE SIGNED
BY YOUR VOTING REPRESENTATIVE IN ORDER TO BE COUNTED.
President
________ Saundra Jacobs, Vice President
Santa Margarita Water District
________ Michael Posey, Trustee
Orange County Mosquito & Vector Control District
First Vice President (Programs)
________ Lucille Kring, President
Orange County Mosquito & Vector Control District
________ Mark Monin, Director
El Toro Water District
------------------------------------------------------------------------------------------------------------------------
________________________________________________________________
DISTRICT NAME
________________________________________________________________
SIGNATURE OF VOTING REPRESENTATIVE
Ballots must be received no later than 5 p.m. October 23, 2018.
You may return your ballot by mail or email to:
Heather Baez
P.O. Box 20895
Fountain Valley, CA 92728
Attention: ISDOC Executive Committee Election
OR Email: hbaez@mwdoc.com
BOARD OF DIRECTORS
JUSTIN MCCUSKER SAUNDRA F.JACOBS
BETTY H.OLSON,PH.D CHARLEY WILSON
CHARLES GIBSON
DANIEL R.FERONS
GENERAL MANAGER
Santa Margarita Waten District
August 28, 2018
Dear Colleagues:
I am delighted to announce my candidacy for President of the Independent Special Districts of Orange
County("ISDOC"). I am writing today to ask for your districts' support.
I have a deep and abiding commitment to the twenty-six Special Districts that competently and ably provide
critical public services in our county. It has been my privilege to serve in ISDOC leadership during my 12
consecutive years on the ISDOC Board. I am currently the First Vice President and serve on the Executive
Committee.
My passion for public service and the work of special districts comes from my 22 years on the Santa Mar-
garita Water District("SMWD")Board of Directors. While I have extensive experience in the water sector
I also have a keen interest and awareness of the needs and requirements for success of all special districts—
from library and vector control to water,sewer,and other community services. I hope that I have adequately
demonstrated my willingness to provide leadership in organization, advocacy, and comnnmication to ben-
efit and nurture special districts of every stripe.
ISDOC is an important association of agencies providing important services associated with LAFCO and
CSDA. We need the continued leadership of all individuals who have a demonstrated commitment to serv-
ing the public, a strong sense of responsibility for the protection of the value that special districts provide,
and a vision to plan for the future of the organization here in Orange County. It would be my honor to serve
you and our organization as President and I humbly ask for your vote and support. If you or your colleagues
have questions about my candidacy I hope you will contact me at 949/702-1145 or at saundraj@smwd.com.
Sincerely,
aundra F. c ?s
SMWD Board Member
First VP, ISDOC
Santa Margarita Water District• 26111 Antonio Parkway,Rancho Santa Margarita,CA 92688
www.SMWD.con 0 (949)459-6420
Michael Posey an
708 Main St.*Huiilington Beach,CA 92648•Phone:714-412-0174
GMail:mikeposey@earthlink.uet
Date: September 17, 2018
Independent Special Districts of Orange County
18700 Ward St.
Fowitain Valley,CA 92708
Dear Selection Committee
I am writing to you today to express my keen interest in serving as President of ISDOC. I was nominated to apply and voted
unanimously by my peers at Orange County Mosquito and Vector Control where I serve on the Board of Trustees as well
serve as the Chair for the Budget and Finance Committee.
Until year-end, I also serve as Mayor for the City of Huntington Beach voted in unanimously by my City Council colleagues
in December 2017 for a one-year term. First elected to the City Council in 2014 1 am finishing my first term and running for
re-election for a second term. Prior to my election to City Council, I served as a Planning Commissioner.
Other County-wide service includes Commissioner for Orange County Parks. I was nominated to serve by Orange County
Supervisor, Michelle Steel with my nomination confirmed unanimously by the entire Board. I also serve as Chair of the
West Orange County Water District and an alternate on Sanitation District.
Committees served at the Cityof Huntington Beach include Chair of Economic Development Committee, Chair of
Intergovernmental Relations, Personnel Committee, Special events and many others.
Non-Governmental service with the Association of California Cities include, Co-Chair of the Jobs and Economic
Development Committee and member of the Legislative Affairs Committee. I also serve on the Government<1l Affairs
Committee for the Huntington Beach Chamber of Commerce.
Lastly, I am on the Board of SCAG, OCCOG and serve as the alternate voting member of the RHNA Committee for
SCAG.
I respectfully ask that nomination be considered: I have the demonstrated leadership, organizational and relationship
building skills to well serve ISDOC and its members.
Sincerely,
c
Michael Posey
BOARD OFFICERS FOR 2018 • 13001 GARDEN GROVE BOULEVARD
PRESIDENT GARDEN GROVE,CA 92843-2102
LUCILLE KRING PHONES:(714)971-2421
VICE-PRESIDENT
CHERYL BROTHERS (949)654-2421
SECRETARY -_ FAX:(714)971-3940
SHARI L.HORNE —
_ ocvcd@ocvcd.org
' ocvector.org
DISTRICT MANAGER facebook.comlocvectorcontrol
RICHARD HOWARD •
CLERK OF THE BOARD • '� �,,.", tWitter.comlocvector.
•
TAWNIA E.PETT
BOARD OF TRUSTEES-2018
ALISO VIEJO September 17, 2018
PHILLIP B.TSUNODA
ANAHEIM
LUCILLE KRING
BREA
CECILIA HUPP
BUENA PARK
MICHAEL DAVIS
COSTA MESA
SANDRA GENIS My name is Lucille Kring, councilwoman in Anaheim for 14 years.
CYPRESS
PAULO MORALES
DANA POINT I am running for 1St Vice President of ISDOC. This organization is needed to
RICHARD VICZOREK
FOUNTAIN VALLEY serve the community of Orange County. It does a great job and needs to be
CHERYL BROTHERS protected.
FULLERTON p
JENNIFER FITZGERALD
GARDEN GROVE
STEPHANIE KLOPFENSTEIN I have served on the Orange County Sanitation District board for over 4 years.
HUNTINGTON BEACH
MIKE POSEY
IRVINE I served on the Transportation Corridor Agencies board for over 8 years.
LYNN SCHOTT
LA HABRA
LA JAMES ALMAGOMEZ I am currently the president of the Orange County Mosquito and Vector Control
MARSHALL GOODMAN board and have served for over 11 years, twice as President.
LAGUNA BEACH
ROB ZUR SCHMIEDE
LAGUNA HILLS
LARRY WOODRUFF I believe my background on these boards and council has prepared me to be a part
LAGUNA NIGUEL of ISDOC.
JOHN MARK JENNINGS
LAGUNA WOODS
SHARI L.HORNE
LAKE FOREST Thank you for your consideration,
ROBERT HOLTZCLAW
LOS ALAMITOS
MARK CHIRCO
MISSION VIEJO
ROBERT RUESCH Lucille Kring
NEWPORT BEACH
SCOTT PEOTTER
ORANGE
MICHAEL ALVAREZ
PLACENTIA
CRAIG GREEN
RANCHO SANTA MARGARITA
APRIL JOSEPHSON
SAN CLEMENTE
MICHELLE SCHUMACHER
SAN JUAN CAPISTRANO
PAM PATTERSON
SANTA ANA
CECILIA AGUINAGA
SEAL BEACH
SANDRA MASSA-LAVITT
STANTON
ALETHANS
TUSTIN
LETITIA CLARK
VILLA PARK
BILL NELSON
WESTMINSTER
SERGIO CONTRERAS
YORBA LINDA
PEGGY HUANG
COUNTY OF ORANGE
LILLY SIMMERING
"An Independent Special District Serving Orange County Since 1947"
The mission of the Orange County Mosquito and Vector Control District is to provide the citizens of
Orange County with the highest level of protection from vectors and vector-borne diseases.
.,o, EI Toro Water District
-4 0
„�,�♦,� " A District of Distinction "
Serving the Public - Respecting the Environment
September 4, 2018 RECEIVED
MWDOC SEP 0 7 2010
Attention: Brett Barber
Board ' Directors 18700 Ward Street
ScottM. • Fountain Valley, CA 92708 MWD OF OC
William H. Kahn
•se F.Vergara Re: Mark Monin for ISDOC 1St Vice President
Frederick J. . .
Mark L.Monin Dear Mr. Barber,
General .._ I would be honored to serve as 1 st Vice President for the Independent Special Districts of Orange
Robert County and would love to speak with your District. I am a Director on the EI Toro Water District
Board and Vice Chairman /Commissioner of the Orange County Airport Land Use Commision. I
was also a PGF Fire Fighter with the Orange County Fire Authority. I have proven to be a fiscally
responsible individual with a "think out of the box mentality" and I look forward to working with
the other ISDOC Board members to achieve greatness. I love Orange County and want to work
hard here and in Sacramento to help Special Districts progress into the future.
Since first becoming involved with ISDOC I have been attending the Executive Committee
meetings on a regular basis which is important because I know the issues that have affected
ISDOC in the past and what is important to propel this fine organization in the future.
My qualifications for this position include:
> EXPERIENCED LEADER
> COMMITTED TO SPECIAL DISTRICTS
> FISCALLY RESPONSIBLE
> DEDICATED
As you know ISDOC is a membership association that was formed more than 30 years ago to
serve the needs of Orange County's independent special districts. I want to build on that fine
tradition, work hard with others to achieve a higher degree of member satisfaction and make
ISDOC even stronger. I feel we can do more with the membership, continue to provide valuable
information and presentations on issues that affect your district which can help you with important
discussions in the future.
I am very active in Orange County and my community. Please see the accompanying resume
outlining my experience and education. I would love to hear your thoughts on how we can make
ISDOC even better and please contact me with your input, ideas or questions on my experience
or platform. I can be reached at(949) 939-6612 or markmonin(crosn.com.
Sincerely,
EL TORO WATER DISTRICT
-�1,1 c—'L d
Mark Monin, Director
P.O. Box 4000 • Laguna Hills, CA 92654-4000 • Phone 949.837.7050 • Fax 949.837.7092
www.etwd.com
ITEM NO. 8.4
AGENDA REPORT
Meeting Date: October 9, 2018
To:Board of Directors
From:Marc Marcantonio, General
Manager
Presented By:Delia Lugo, Finance Manager Dept:Finance
Prepared By:Kelly McCann, Senior
Accountant
Subject:Audit Report for Fiscal Year Ending June 30, 2018
STAFF RECOMMENDATION:
That the Board of Directors receive and file the Yorba Linda Water District Comprehensive Annual
Financial Reports for Fiscal Year Ending June 30, 2018, the Report on Internal Control, and the
Communication to Those in Governance Letter.
DISCUSSION:
Staff is pleased to present the Board of Directors with Yorba Linda Water District's Comprehensive
Annual Financial Report (CAFR) for the Fiscal Year Ending June 30, 2018.
White Nelson Diehl Evans LLP, the Districts' external auditing firm, has completed their audit of the
Yorba Linda Water District for the fiscal year ending June 30, 2018, and have rendered an
unmodified (clean) opinion on the attached CAFR. Ms. Daphnie Munoz, Partner of White Nelson
Diehl Evans LLP, is in attendance to present the CAFR. She will discuss key factors that
contributed to the District's reported Change in Net Position, internal control comment including
management's response to this comment, and report on the required disclosures in the
Communication to Those in Governance Letter.
Staff will submit the CAFR for consideration of the GFOA Certificate of Achievement for Excellence
in Financial Reporting. Staff is expecting that this CAFR will merit the highest level of recognition as
obtained for the CAFR of June 30, 2017.
STRATEGIC PLAN:
G2 1A - Comply with Governmental Accounting Standards Board regulations.
ATTACHMENTS:
Name:Description:Type:
FY18_CAFR.pdf Backup Material Backup Material
FY18_GAS_Letter.pdf Backup Material Backup Material
FY18_ACL_Letter.pdf Backup Material Backup Material
YORBA LINDA WATER DISTRICT
of Yorba Linda, California
Comprehensive Annual Financial Report
WITH REPORT ON AUDIT BY
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
For the Year Ended June 30, 2018
Prepared by:
The Yorba Linda Water District Finance Department
Delia Lugo, Finance Manager
Kelly McCann, Senior Accountant
Maria Trujillo, Accounting Assistant II
Richard Cabadas, Accounting Assistant II
Saira Hernandez, Accountant
This page intentionally left blank
YORBA LINDA WATER DISTRICT
For the Fiscal Year Ended June 30, 2018
Table of Contents
Page
Number
INTRODUCTORY SECTION:
Letter of Transmittal i
Board of Directors and Executive Staff viii
Organization Chart ix
District Boundaries x
Certificate of Achievement for Excellence in Financial Reporting xi
FINANCIAL SECTION:
Independent Auditors’ Report 1
Management’s Discussion and Analysis
(Required Supplementary Information) 5
Basic Financial Statements: 15
Statement of Net Position 16
Statement of Revenues, Expenses,
and Changes in Net Position 18
Statement of Cash Flows 19
Notes to Basic Financial Statements 21
Required Supplementary Information: 59
Schedule of Proportionate Share of the Net Pension Liability 60
Schedule of Contributions - Defined Benefit Pension Plans 61
Schedule of Changes in the Net OPEB Liability and Related Ratios 62
Schedule of Contributions - OPEB 63
Supplementary Information: 65
Combining Schedule of Net Position - 2018 66
Combining Schedule of Revenues, Expenses, and
Changes in Net Position - 2018 68
Combining Schedule of Cash Flows - 2018 69
Schedule of Operating Expenses by Cost Center and
Nature of Expenses for Water and Sewer - 2018 71
Schedule of Capital Assets - 2018 72
Combining Schedule of Net Position - 2017 73
Combining Schedule of Revenues, Expenses, and
Changes in Net Position - 2017 75
Combining Schedule of Cash Flows - 2017 76
Schedule of Operating Expenses by Cost Center and
Nature of Expenses for Water and Sewer - 2017 78
Schedule of Capital Assets - 2017 79
YORBA LINDA WATER DISTRICT
For the Fiscal Year Ended June 30, 2018
Table of Contents
Page
Number
STATISTICAL SECTION: 81
Description of Statistical Section 83
Financial Trends:
Changes in Net Position 84
Revenue Capacity:
Number of Connections 86
Ten Largest Customers 87
Debt Capacity:
Ratio of Outstanding Debt 88
Debt Coverage 89
Demographic and Economic Information:
Demographics 90
Ten Largest Employers 91
Operating Information:
Number of Employees 92
Operating and Capacity Indicators 93
INTRODUCTORY SECTION
This page intentionally left blank
i
September 20, 2018
Members of the Board of Directors
Yorba Linda Water District
Introduction
It is our pleasure to submit Yorba Linda Water District’s Comprehensive Annual Financial
Report (CAFR) for the fiscal year ending June 30, 2018. This report was prepared
pursuant to the guidelines set forth by the Governmental Accounting Standards Board
(GASB).
District staff prepared this financial report in conjunction with an unmodified opinion
issued by the independent audit firm White, Nelson, Diehl, Evans LLP. The independent
auditor’s report is located at the front of the financial section of this document.
Management’s discussion and analysis (MD&A) immediately follows the independent
auditor’s report and provides a narrative introduction, overview and analysis of the basic
financial statements. MD&A complements this letter of transmittal and should be read in
conjunction with it.
This report consists of management’s representations concerning the finances of Yorba
Linda Water District. Consequently, management assumes responsibility for the
completeness and reliability of the information presented in this report. To provide a
reasonable basis for making these representations, the District has established a
comprehensive internal control framework that is designed both to protect the District’s
assets from loss, theft or misuse, and to compile sufficient reliable information for the
preparation of the District’s financial statements in conformity with Generally Accepted
Accounting Principles (GAAP). Because the cost of internal control should not outweigh
its benefits, the District’s comprehensive framework of internal controls has been
designed to provide reasonable, rather than absolute, assurance that the financial
statements will be free from material misstatement. Management asserts that to the best
of our knowledge and belief this financial report is complete and reliable in all material
aspects.
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Yorba
Linda Water District for its comprehensive annual financial report for the fiscal year ended
June 30, 2017. In order to be awarded a Certificate of Achievement, a governmental entity
must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one
ii
year only. We believe that our current comprehensive annual financial report continues
to meet the Certificate of Achievement Program requirements and we are submitting it to
the GFOA to determine its eligibility for certificate again this year.
District Structure and Leadership
The Yorba Linda Water District is an independent special district, which operates under
the authority of Division 12 of the California Water Code. The Yorba Linda Water District
has provided water and sewer services to the residents of the City of Yorba Linda,
portions of Placentia, Brea, Anaheim, and nearby unincorporated areas since 1959, the
year it was formed to take over the assets and water service responsibilities of the Yorba
Linda Water Company, a mutual formed in 1909. The District is governed by a five-
member Board of Directors, elected at large from within the District’s service area. The
General Manager administers the day-to-day operations of the District in accordance with
policies and procedures established by the Board of Directors. The Yorba Linda Water
District employs a full-time staff of 80 employees. The District’s Board of Directors meets
on the second and fourth Tuesday of each month. Meetings are publicly noticed and
citizens are encouraged to attend.
The District provides water, sewer, or a combination of both services to residents and
businesses within its service area, which includes approximately 14,475 acres of land
comprising 22.6 square miles. The District serves a population of approximately 80,000
and currently provides water service through approximately 25,000 service connections.
District Services
Residential customers make up approximately 92% of the District’s customer base and
consume approximately 73% of the water provided annually by the District. The District
obtains about 30% of its water supply from the Metropolitan Water District (MWD) through
the Municipal Water District of Orange County (MWDOC) and the 70% from groundwater
wells within the area. In FY18 the District provided 20,386 acre-feet of water to its
customers.
The District’s service area is known for having larger than average residential lots and a
network of horse trails. The City of Yorba Linda’s median income is approximately 25%
greater than the overall median income for Orange County, as reported by 2016-17
Census data.
Economic Condition and Outlook
The District’s administrative offices are located in the City of Placentia in Orange County.
The economic outlook for the area shows moderate growth, which is projected to continue
with new commercial business and a steadily improving housing market.
On May 9, 2016, the Governor issued a new Executive Order (B-37-16) “Making Water
Conservation a California Way of Life”. Though the District still encourages it customers
to conserve, it was anticipated that customer consumption would increase above the prior
iii
year regardless of permanent restrictions on water use. As a result, the Operating Budget
for FY18 reflected an increase in customer consumption of 8% from the calculated
customer consumption projected by the end of FY17. Experiencing a year of minimal
rainfall and record setting heat days, actual customer consumption for FY18 surpassed
that of FY17 by approximately 14% (6% greater than projected).
As staff monitors the proposals and discussions of the SWRCB, as they pertain to “Making
Water Conservation a Way of Life” and potential future mandatory conservation efforts,
staff is diligently working on preparing proactive proposals on how to best incorporate
potential future changes as smoothly as possible, while ensuring customer needs are
met.
As of May 2014, the District was granted annexation of the remaining 26% of its service
area into the Orange County Water District (OCWD). It was anticipated that with full
annexation the District will be able to pump the maximum groundwater allowable each
year, at a lower cost than purchasing the same amount of import (MWD) water. The
October 2, 2013 Annexation Agreement between OCWD and the District, however, has
limited the District from producing the full OCWD’s Basin Production Percentage (BPP),
75%, over the past five years and is due to expire in October 2018. Current facility
(infrastructure) limitations and agreement limitations prevented the District from pumping
more than 70% for the reporting fiscal year. Upon completion of the Fairmont Booster
Pump Station (FBPS) in Fall 2018, the District will be able to meet the maximum BPP as
set by OCWD (now at 77%). Once the FBPS is fully operational, the District will
experience a significant decrease in its annual variable water costs by using more
groundwater that is less expensive.
Future financial challenges are likely to be due to increasing regulatory requirements at
both the state and federal levels. California’s water supply continues to be a concern due
to the current drought conditions and potential mandates from the State Water Resource
Control Board and environmental and regulatory restrictions that threaten the State’s
water supply and conveyance system through the Sacramento-San Joaquin Delta—all of
which lead to increasing supply costs. Within the District’s boundaries, population growth
is expected to increase only minimally in the next 5-10 years. Additionally, the District’s
area is primarily “built out”, and an influx of residents from outside the area is expected to
remain fairly low.
Mission/Vision Statement and Major Initiatives
The activities of the Board and staff of the District are driven by its Mission Statement:
“Yorba Linda Water District will provide reliable water and sewer services to protect public
health and the environment with financial integrity and superior customer service,” and its
Vision Statement: “Yorba Linda Water District will accomplish our mission to improve the
quality of life for those we serve by: Embracing proven technology, improving customer
satisfaction, providing efficient and responsive operations, and ensuring reliable
infrastructure.” The Mission and Vision Statements dictate the following six core values
of the District.
iv
1. Integrity– We demonstrate integrity every day by practicing the highest ethical
standards and by ensuring that our actions follow our words.
2. Accountability– We acknowledge that both the Board and the staff of the District
are accountable to the public that we serve, as well as to each other.
3. Responsibility– We take full responsibility for our actions. We maintain a
commitment of courtesy, assessment, and resolution with all customer concerns.
4. Transparency – We listen to our customer and communicate openly about our
policies, processes, and plans for the future.
5. Teamwork – We work together by sharing information and resources to achieve
common goals.
6. Respect – We ensure every voice of the District is treated with dignity and civility;
differences are valued and individual abilities and contributions are recognized.
Future Years
In 2018, the California State Legislature enacted two policy bills, Senate Bill 606 and
Assembly Bill 1668. Both bills are direct outcomes of the Governor’s Executive Order
(B-37-16) “Making Conservation a California Way of Life” and will establish a new
foundation for long-term improvements in water conservation and drought planning. In
the forthcoming FY19, this new framework will assist the District in using water more
wisely (developing a water budget), eliminating water waste, and strengthening local
drought resiliency. As the District looks towards the future, the goals, objectives and
initiatives within the updated District Strategic Plan and Asset Management Plan will
pave the way as to how the District continues to move forward.
The forthcoming FY19 budget is predicated upon the assumption that customer water
consumption will remain as resulted in the prior year due to permanent landscaping
changes, water use efficiency awareness, and a growing culture of drought sensitivity.
As we continue to adapt to the State’s mandated water conservation regulations, and with
reduced consumption, our ability to maintain a high level of service while holding costs
down has been challenged. District staff, with the assistance of Raftelis Financial
Consultants, Inc, has developed financial models for the water and sewer enterprises to
ensure financial sufficiency that includes the establishment of adequate reserve balances,
meets the operation and maintenance costs, and ensures sufficient funding for capital
refurbishment and replacement needs. Policies and procedures have been revised to
ensure financial strength.
v
Long-term Financial Planning and Policies
The District perpetually maintains a five-year Financial Forecast to identify and focus on
current and projected economic conditions. The purpose of the forecast is to identify the
District’s ability over the next five years to continue current services, maintain existing
assets and fund new initiatives or acquire new capital assets.
The Board of Directors also annually reviews and adopts a five-year forecast of Capital
Improvement Projects. These investments reflect the Board of Directors commitment to
maintain and improve the District, in order to provide citizens the highest possible service.
The District’s Debt Management Policy has a significant impact on the District’s water and
sewer rates set by the Board of Directors on an annual basis. District annual rates and
charges shall be set to maintain an annual debt coverage ratio of at least 225% to retain
a AA rating from bond rating agencies. Therefore, having an impact on the District’s
reportable net position for each fiscal year end.
Water and Sewer Rates
With the absence of a conservation mandate from the SWRCB, staff had projected that
the annual customer consumption for FY18 would increase by approximately 8% from the
projected year-end results of FY17. This projected consumption increase therefore,
enabled the District to retain the commodity rate and monthly service charges as set by
the Board of Directors in FY17 for FY18 with the goal of meeting the District’s cost of
service and providing superior customer service. As such, the District’s commodity rate
was set at $2.70/unit and the monthly service charges were set at follows: 5/8 and ¾ inch
meters at $19.45, 1” meters at $32.49, 1 ½ inch meters at $64.78, 2” meters at $103.69,
3’ meters at $227.04, 4’ meters at $408.55 and 6” meters at $907.95. One unit of water
equals 748 gallons, equating one gallon of water to a cost of approximately $0.01. At an
average of 18 units of water per month (approximately 13,500 gallons), a typical 1 inch
metered YLWD residential classed customer would pay about $81.09 for their monthly
water bill.
YLWD also provided wastewater service to approximately 19,191 customer connections
in FY18, at a charge of $6.94 per month for traditional single-family residential customers,
$6.52 per month for multi-family residential customers, and $6.94 plus a $0.44 per unit
charge based on water consumption above 7 units for commercial customers. These
rates are the result of a Cost of Service analysis via the 2016 Water and Sewer Rate
Update Report.
The District’s water supply is currently derived from both groundwater (70%) and import
water (30%). Both import and groundwater prices have dramatically increased over the
past five fiscal years, and it is anticipated that costs will continue to increase as supplies
become more strained from projected population increases, cyclical drought conditions,
and environmental and regulatory regulations.
vi
Enhanced Outreach & Communications
The District continues to enhance its communications presence within the community.
The Public Affairs division of the Administration Department develops and disseminates
information to the public and supports water conservation programs with the overall goal
of developing a more transparent image of the District to the community.
Technological Advancements in Progress
Technological advancements include the incorporation of a Computerized Maintenance
& Management System (CMMS), which automates and tracks fieldwork orders and
provides actual costs to perform work-order related functions. In planning is an Automated
Purchase Requisitioning System, which will provide better workflow and approvals for
purchasing items, as well as have direct integration with the District’s financial software.
Internal Control Structure
District management is responsible for the establishment and maintenance of the internal
control structure that ensures the assets of the District are protected from loss, theft or
misuse. The internal control structure also ensures adequate accounting data is compiled
to allow for the preparation of financial statements in conformity with Generally Accepted
Accounting Principles (GAAP). The District’s internal control structure is designed to
provide reasonable assurance that these objectives are met. The concept of reasonable
assurance recognizes that (1) the cost of a control should not exceed the benefits likely
to be derived, and (2) the valuation of costs and benefits requires estimates and
judgments by management.
Budgetary Control
The District Board of Directors adopts an operating and capital budget every fiscal year.
The budget authorizes and provides the basis for reporting and control of financial
operations and accountability for the District’s enterprise operations and capital projects.
The budget and reporting treatment applied to the District is consistent with the accrual
basis of accounting and financial statement presentation.
Cash and Investment Management
In order of priority, the District’s objectives when investing, reinvesting, purchasing,
acquiring, selling and managing public funds are as follows:
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments made by the District are undertaken in a manner that seeks to ensure
the preservation of capital in the overall portfolio. To attain this objective,
diversification is required to prevent any potential loss on any individual security or
depository from exceeding the income generated from the remainder of the
portfolio.
vii
2. Liquidity: The investment portfolio is to remain sufficiently liquid to enable the
District to meet all operating requirements that might be reasonably anticipated.
3. Return on Investments: The investment portfolio is designed with the objective of
attaining a market rate of return throughout budgetary and economic cycles, taking
into account the investment risk constraints and the cash flow characteristics of
the portfolio.
Audit and Financial Reporting
State Law and Bond covenants require the District to obtain an annual audit of its financial
statements by an independent Certified Public Accountant. The accounting firm of White,
Nelson, Diehl, Evans LLP has conducted the audit of the District’s financial statements.
Their unmodified (clean) Independent Auditor’s Report appears in the Financial Section.
Other References
More information is contained in the Management’s Discussion and Analysis and the
Notes to the Basic Financial Statements found in the Financial Section of the report.
Acknowledgements
Preparation of this report was accomplished by the combined efforts of District staff. We
appreciate the dedicated efforts and professionalism that these staff members contribute
to the District. We would also like to thank the members of the Board of Directors for their
continued support in planning and implementation of the Yorba Linda Water District’s
fiscal policies.
Respectfully submitted,
__________________________ ________________________________
Marc Marcantonio Delia Lugo
General Manager Finance Manager
viii
Yorba Linda Water District
Board of Directors and Executive Staff
Al Nederhood, President Brooke Jones, Vice-
President
Andrew J. Hall, Director Phil Hawkins, Director J. Wayne Miller, Director
Marc Marcantonio, General Manager
Brett Barbre, Asst General Manager
Rosanne Weston
Engineering Mgr
John DeCriscio
Operations Mgr
Gina Knight
HR/Risk & Safety Mgr
Delia Lugo
Finance Manager
Art Vega
IT Manager
Job Classification Legend FY 2017‐2018 ORGANIZATIONAL CHART BOARD OF DIRECTORSGeneral ManagerEngineering ManagerSenior Project ManagerEngineering Technician IIEngineering Technician IIConstruction Project SupervisorSenior Construction InspectorConstruction InspectorPrincipal EngineerSenior EngineerGIS AnalystFinance ManagerCustomer Service Billing AdministratorCustomer Service Rep. IIICustomer Service Rep. IIICustomer Service Rep. IICustomer Service Rep. IISenior AccountantAccountantAccounting Technician IIAccounting Technician IIHuman Resources/ Risk & Safety ManagerRecords Management AdministratorRecords Management SpecialistSafety & Training AnalystHuman Resources AnalystHuman Resources TechnicianInformation Technology ManagerInformation Systems AdministratorInformation Systems Technician I Operations ManagerProduction SuperintendentPlant Operator IIWater Quality Technician IIPlant Operator IISenior SCADA TechnicianPlant Operator IIMeter Services LeadMeter Reader IIMeter Reader IIMeter Reader IPlant Operator I (Operator‐in‐Training)Senior Plant OperatorOperations SuperintendentSenior Fleet MechanicMechanic IIIMechanic IIFacilities MaintenanceOffice ClerkOperations AssistantMaintenance SuperintendentSenior Maintenance WorkerMaintenance Worker IIIMaintenance Worker IIMaintenance Worker IIMaintenance Worker IMaintenance Worker ISenior Maintenance WorkerMaintenance Worker IIIMaintenance Worker IIMaintenance Worker IIMaintenance Worker IMaintenance Worker ISenior Maintenance WorkerMaintenance Worker IIIMaintenance Worker IIIMaintenance Worker IIMaintenance Worker IMaintenance Worker ISenior Maintenance WorkerMaintenance Worker IIIMaintenance Worker IIMaintenance Worker IMaintenance Worker IMaintenance Worker IAssistant General ManagerManagement AnalystPublic Affairs RepresentativeInformation Systems AdministratorExecutive AssistantUnrepresented EmployeesBargaining Unit Employees
x
District Boundaries
Government Finance officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Yorba Linda Water District
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 34, 2017
041&� P.
Executive Director/CEO
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FINANCIAL SECTION
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2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
1
INDEPENDENT AUDITORS’ REPORT
Board of Directors
Yorba Linda Water District
Placentia, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Yorba Linda Water District (the District), as of
and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively
comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America, the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States, and the State Controller’s Minimum Audit Requirements for California Special Districts.
Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the District’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the District as of June 30, 2018, and the changes in financial position and cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Notes 1e and 13 of the financial statements, the District adopted Governmental Accounting
Standards Board’s (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other than Pensions. The adoption of this standard required retrospective application resulting in a $2,514,827
reduction of previously reported net position. Our opinion is not modified with respect to this matter.
Other Matters
Prior-Year Comparative Information
The statements include summarized prior-year comparative information. Such information does not include
sufficient detail to constitute a presentation in accordance with accounting principles generally accepted in the
United States of America. Accordingly, such information should be read in conjunction with the District’s
financial statements as of and for the year ended June 30, 2017, from which such summarized information was
derived.
Report on Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule of
contributions - defined benefit pension plans, the schedule of changes in the net other post-employment benefit
(OPEB) liability and related ratios, and the schedule of contributions - OPEB, identified as Required
Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
GASB, who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures to the
RSI in accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during the audit of the basic financial statements. We do not express an opinion or provide any
assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the District’s basic financial statements. The introductory section, supplementary information
consisting of the combining schedules, the schedules of operating expenses by cost center and nature of
expenses for water and sewer, and the schedules of capital assets, and the statistical section, as listed in the table
of contents, are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining schedules, the schedules of operating expenses by cost center and nature of expenses for water
and sewer, and the schedules of capital assets as of and for the year ended June 30, 2018, as listed in the table of
contents, are the responsibility of management and were derived from, and relate directly to, the underlying
accounting and other records used to prepare the basic financial statements.
3
Other Matters (Continued)
Other Information (Continued)
Such information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining schedules, the schedules of operating expenses by cost
center and nature of expenses for water and sewer, and the schedules of capital assets are fairly stated, in all
material respects, in relation to the basic financial statements taken as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we express no opinion or provide any assurance on
them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 20, 2018,
on our consideration of the District’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the District’s internal control over financial reporting and compliance.
Irvine, California
September 20, 2018
4
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5
MANAGEMENT’S DISCUSSION AND ANALYSIS
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
6
The following Management’s Discussion and Analysis (“MD&A”) of activities and financial
performance of the Yorba Linda Water District (“District”) provides an introduction to the financial
statements of the District for the fiscal year ended June 30, 2018. We encourage readers to consider the
information presented here in conjunction with the transmittal letter in the Introductory Section and
with the basic financial statements and related notes, which follow this section.
Financial Highlights
FY 2018
The District’s net position decreased by $1.1 million, or a .7 % decrease in net position.
During the year the District’s revenues were $37.9 million, an increase of 7.8%.
During the year, the District’s expenses were $37.9 million, an increase of 7.5%.
The District had net additions to capital assets of $3.6 million.
FY 2017
The District’s net position increased by $2.6 million, or a 1.6% increase in net position.
During the year the District’s revenues were $35.2 million, an increase of 0.17%.
During the year, the District’s expenses were $35.2 million, an increase of 9.6%.
The District had net additions to capital assets of $.7 million.
Required Financial Statements
This annual report consists of a series of financial statements. The Statement of Net Position,
Statement of Revenues, Expenses and Changes in Net Position and Statement of Cash Flows provide
information about the activities and performance of the District using accounting methods similar to
those used by private sector companies.
The District’s statements consist of two funds; the Water Fund and the Sewer Fund. The District’s
records are maintained on an enterprise basis, as it is the intent of the Board of Directors that the costs
of providing water and sewer to the customer of the District are financed primarily through user
charges.
The Statement of Net Position includes all of the District’s investments in resources (assets), deferred
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
7
outflows of resources, obligations to creditors (liabilities) and deferred inflow of resources. It also
provides the basis for computing a rate of return, evaluating the capital structure of the District, and
assessing the liquidity and financial flexibility of the District. All of the current year’s revenue and
expenses are accounted for in the Statement of Revenues, Expenses and Changes in Net Position. This
statement measures the success of the District’s operations over the past year and can be used to
determine if the District has successfully recovered all of its costs through its rates and other charges.
This statement can also be used to evaluate profitability and credit worthiness. The final required
financial statement is the Statement of Cash Flows, which provides information about the District’s
cash receipts and cash payments during the reporting period. The Statement of Cash Flows reports cash
receipts, cash payments and net changes in cash resulting from operations, investing, non-capital
financing, and capital and related financing activities and provides answers to such questions as where
did cash come from, what was cash used for, and what was the change in cash balance during the
reporting period.
Financial Analysis of the District
One of the most important questions asked about the District’s finances is, “Is the District better off or
worse off as a result of this year’s activities?” The Statement of Net Position and the Statement of
Revenues, Expenses and Changes in Net Position report information about the District in a way that
helps answer this question. These statements include all assets, deferred outflows of resources,
liabilities, and deferred inflows of resources using the accrual basis of accounting, which is similar to
the accounting used by most private sector companies. All of the current year’s revenues and expenses
are taken into account regardless of when the cash is received or paid.
These two statements report the District’s net position and changes in them. You can think of the
District’s net position (the difference between assets, deferred outflows of resources, liabilities, and
deferred inflows of resources), as one way to measure the District’s financial health, or financial
position. Over time, increases or decreases in the District’s net position is one indicator of whether its
financial health is improving or deteriorating. However, one will need to consider other non-financial
factors such as changes in economic conditions, conservation mandates, population growth, zoning and
new or changed government legislation, such as changes in Federal and State water quality standards.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the basic financial statements. The notes to the basic financial statements can be found on pages 21
through 57.
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
8
Statement of Net Position
Statement of Net Position for the year ended June 30, 2018 is as follows:
2018 2017 Change
Assets:
Current assets $ 41,482,969 $ 39,924,566 $ 1,558,403
Restricted assets 593,767 5,189,724 (4,595,957)
Capital assets, net
Not depreciable 10,788,120 5,848,629 4,939,491
Depreciable, net of accumulated depreciation 183,473,005 184,811,581 (1,338,576)
Other post-employment benefit (OPEB) asset - 411,343 (411,343)
Total assets 236,337,861 236,185,843 152,018
Deferred Outflows of Resources:3,524,983 2,366,673 1,158,310
Liabilities:
Liabilities payable from unrestricted current assets 7,957,100 7,523,933 433,167
Liabilities payable from restricted assets 346,205 111,000 235,205
Non-current liabilities 64,894,947 63,076,794 1,818,153
Total liabilities 73,198,252 70,711,727 2,486,525
Deferred Inflows of Resources:787,723 861,366 (118,609)
Net position:
Net investment in capital assets 154,271,627 154,273,025 (1,398)
Restricted 352,063 1,222,452 (870,389)
Unrestricted 11,253,179 11,483,946 (230,767)
Total net position $ 165,876,869 $ 166,979,423 $ (1,102,554)
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
9
Statement of Net Position for the year ended June 30, 2017 was as follows:
2017 2016 Change
Assets:
Current assets $ 39,924,566 $ 44,555,956 $ (4,631,390)
Restricted assets 5,189,724 2,199,135 2,990,589
Capital assets, net
Not depreciable 5,848,629 5,005,418 843,211
Depreciable, net of accumulated depreciation 184,811,581 184,944,351 (132,770)
Note receivable - 78,567 (78,567)
Other post-employment benefit (OPEB) asset 411,343 276,289 135,054
Total assets 236,185,843 237,059,716 (873,873)
Deferred Outflows of Resources:2,366,673 1,137,794 1,228,879
Liabilities:
Liabilities payable from unrestricted current assets 7,523,933 13,775,913 (6,251,980)
Liabilities payable from restricted assets 111,000 57,668 53,332
Non-current liabilities 63,076,794 58,656,501 4,420,293
Total liabilities 70,711,727 72,490,082 (1,778,355)
Deferred Inflows of Resources:861,366 1,331,326 (469,960)
Net position:
Net investment in capital assets 154,273,025 153,776,247 496,778
Restricted 1,222,452 1,572,527 (350,075)
Unrestricted 11,483,946 9,027,328 2,456,618
Total net position $ 166,979,423 $ 164,376,102 $ 2,603,321
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the District, assets and deferred outflows of resources of the District exceeded
liabilities and deferred inflows of resources by $165.8 million and $166.9 million as of June 30, 2018
and 2017, respectively. The net change between these two reported fiscal years is primarily due in Net
Position “Restricted” balance.
By far the largest portion of the District’s net position (93.0% and 92.4% as of June 30, 2018 and
2017, respectively) reflects the District’s investment in capital assets (net of accumulated depreciation)
less any related debt used to acquire those assets that is still outstanding. The District uses these capital
assets to provide services to customers within the District’s service area; consequently, these assets are
not available for future spending.
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
10
For the year ended June 30, 2018, the District showed a positive balances in its unrestricted net
position of $11.2 million and in its Restricted for Water Conservation/OPEB contribution position of
$352,063, which indicates that there are reserves to be utilized in future years and is a decrease from
the stated balance of $12.7 million for the year ended June 30, 2017.
Statement of Revenues, Expenses and Changes in Net Position
Statement of Revenues, Expenses and Changes in Net Position for the year ended June 30, 2018 is as
follows:
2018 2017 Change
Revenues:
Operating revenues:
Water sales $ 32,082,152 $ 29,326,565 $ 2,755,587
Sewer revenue 2,330,809 2,099,947 230,862
Other operating revenue 831,733 1,033,608 (201,875)
Total operating revenues 35,244,694 32,460,120 2,784,574
Non-operating revenues:
Investment income 518,600 377,205 141,395
Property taxes 1,749,957 1,687,384 62,573
Other non-operating income 413,465 645,562 (232,097)
Total non-operating revenue 2,682,022 2,710,151 (28,129)
Total revenues 37,926,716 35,170,271 2,756,445
Expenses:
Operating expenses:
Variable costs 15,028,131 12,710,857 2,317,274
Pesonnel services 9,874,212 8,913,639 960,573
Supplies and services 4,298,863 4,504,054 (205,191)
Depreciation 7,465,977 7,147,369 318,608
Total operating expenses 36,667,183 33,275,919 3,391,264
Non-operating expenses:
Interest expense 1,106,515 1,552,896 (446,381)
Other non-operating expense 89,021 403,597 (314,576)
Total non-operating expenses 1,195,536 1,956,493 (760,957)
Total expenses 37,862,719 35,232,412 2,630,307
Net income(loss) before capital contributions 63,997 (62,141) 126,138
and special items
Capital contributions 3,554,123 2,665,462 888,661
Special item (2,205,847) - (2,205,847)
Change in net position 1,412,273 2,603,321 (1,191,048)
Net position, beginning of year 166,979,423 164,376,102 2,603,321
Prior-period Adjustments (2,514,827) - (2,514,827)
Net position, end of year $ 165,876,869 $ 166,979,423 $ (1,102,554)
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
11
Statement of Revenues, Expenses and Changes in Net Position for the year ended June 30, 2017 was as
followed:
2017 2016 Change
Revenues:
Operating revenues:
Water sales $ 29,326,565 $ 27,820,638 $ 1,505,927
Sewer revenue 2,099,947 1,849,114 250,833
Other operating revenue 1,033,608 2,665,835 (1,632,227)
Total operating revenues 32,460,120 32,335,587 124,533
Non-operating revenues:
Investment income 377,205 288,817 88,388
Property taxes 1,687,384 1,615,454 71,930
Other non-operating income 645,562 872,420 (226,858)
Total non-operating revenue 2,710,151 2,776,691 (66,540)
Total revenues 35,170,271 35,112,278 57,993
Expenses:
Operating expenses:
Variable costs 12,710,857 10,470,181 2,240,676
Pesonnel services 8,913,639 8,096,853 816,786
Supplies and services 4,504,054 4,355,033 149,021
Depreciation 7,147,369 7,546,407 (399,038)
Total operating expenses 33,275,919 30,468,474 2,807,445
Non-operating expenses:
Interest expense 1,552,896 1,671,539 (118,643)
Other non-operating expense 403,597 7,273 396,324
Total non-operating expenses 1,956,493 1,678,812 277,681
Total expenses 35,232,412 32,147,286 3,085,126
Net income(loss) before capital contributions (62,141) 2,964,992 (3,027,133)
Capital contributions 2,665,462 788,445 1,877,017
Change in net position 2,603,321 3,753,437 (1,150,116)
Net position, beginning of year 164,376,102 160,622,665 3,753,437
Net position, end of year $ 166,979,423 $ 164,376,102 $ 2,603,321
The statement of revenues, expenses and changes of net position shows how the District’s net position
changed during the fiscal years. In the case of the District, net position decreased by $1.1 million and
increased by $2.6 million for the fiscal years ended June 30, 2018 and 2017, respectively.
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
12
A closer examination of the sources of changes in net position reveals that:
In 2018, the District’s total revenues increased by $2.8 million, primarily due to a net increase in water
sales of $2.76 million as a result of the increase of water usage. Total expenses increased by $2.6
million primarily due to a increase in variable water costs of $2.3 million.
In 2017, the District’s total revenues increased by $58 thousand, as well as a decrease in Other
Operating Revenue of $1.6 million predominantly due to the suspension of the assessment of
Administrative Penalties as authorized by Ordinance No. 16.01. Total expenses increased by $3.1
million primarily due to an increase in variable water costs for $2.2 million
Capital Assets
Changes in capital asset amounts for 2018 were as follows:
Balance Transfers/ Balance
2017 Additions Deletions 2018
Capital assets:
Capital assets, not being depreciated $ 5,848,629 $ 11,076,270 (6,136,779) $ 10,788,120
Capital assets, being depreciated 281,695,381 6,201,313 (384,828) 287,511,866
Less accumulated depreciation (96,883,800) (7,465,977) 310,916 (104,038,861)
Total capital assets, net $ 190,660,210 $ 9,811,606 $ (6,210,691) $ 194,261,125
Changes in capital asset amounts for 2017 were as follows:
Balance Transfers/ Balance
2016 Additions Deletions 2017
Capital assets:
Capital assets, not being depreciated $ 5,005,418 $ 7,330,282 (6,487,071) $ 5,848,629
Capital assets, being depreciated 274,769,041 7,014,599 (88,259) 281,695,381
Less accumulated depreciation (89,824,690) (7,147,369) 88,259 (96,883,800)
Total capital assets, net $ 189,949,769 $ 7,197,512 $ (6,487,071) $ 190,660,210
At the end of fiscal year 2018 and 2017, the District’s investment in capital assets amounted to $194.3
million and $190.6 million, respectively (net of accumulated depreciation). This investment in capital
assets includes land, transmission and distribution systems, reservoirs, tanks, pumps, buildings and
structures, equipment, vehicles and construction-in-process, etc. Major capital assets projects in fiscal
year 2017-18 include the construction of Fairmont Booster Pump Station, Well 22, and the purchase of
various district vehicles and equipment. Where in fiscal year 2016-17, major capital asset projects
included the construction of Well 21, various water and sewer mains for development and the purchase
of various district vehicles and equipment.
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
13
Additional information regarding capital assets can be found in note 4 in Notes to Basic Financial
Statements.
Long-Term Liabilities
Changes in long-term debt amounts for the year ended June 30, 2018 were as follows:
Beginning Ending
Balance Additions Reductions Balance
2012A Refuding Certificate
of Participation $ 7,230,000 $ - $ (295,000) $ 6,935,000
2017A Revenue Bonds 29,335,000 - (945,000) 28,390,000
Subtotal 36,565,000 - (1,240,000) 35,325,000
Add (Less):
2012A Premium 767,216 - (47,703) 719,513
2017A Premium 4,425,817 - (208,274) 4,217,543
Total Certificates of Participation 41,758,033 - (1,495,977) 40,262,056
Compensated Balances 1,619,653 880,816 (745,207) 1,755,262
Total $ 43,377,686 $ 880,816 $ (2,241,184) $ 42,017,318
Changes in long-term debt amounts for the year ended June 30, 2017 were as follows:
Beginning Ending
Balance Additions Reductions Balance
2008 Revenue Certificates
of Participation $ 29,865,000 $- $ (29,865,000) $-
2012A Refuding Certificate
of Participation 7,515,000 - (285,000) 7,230,000
2017A Revenue Bonds - 29,335,000 - 29,335,000
Subtotal 37,380,000 29,335,000 (30,150,000) 36,565,000
Add (Less):
2008 Pemium 572,435 - (572,435)-
2012A Premium 814,919 - (47,703) 767,216
2017A Premium - 4,460,529 (34,712) 4,425,817
Total Certificates of Participation 38,767,354 33,795,529 (30,804,850) 41,758,033
Line of Credit 6,883,720 116,280 (7,000,000) -
Compensated Balances 1,442,344 872,091 (694,782) 1,619,653
Total $ 47,093,418 $ 34,783,900 $ (38,499,632) $ 43,377,686
YORBA LINDA WATER DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
(CONTINUED)
For the Year Ended June 30, 2018
14
In fiscal year 2017-18, long-term debt decrease by 1.4 million due to the principal payments on the
2012A and 2017A Revenue Bonds. Compared to fiscal year 2016-17, two significant items occurred
in relation to the District’s long-term debt. On September 30, 2016, the District paid down the Wells
Fargo Line of Credit in the amount of $7 million. Secondly, in May of 2017, the District’s 2008
Revenue Certificates of Participation were refunded in advance by the Revenue Bonds, Series 2017A.
The refunding will reduce debt service payments over the next 21 years by over $5.05 million,
resulting in an economic gain (difference between the present value of the old and new debt service
payments) of approximately $4.22 million.
Additional information regarding long-term liabilities can be found in note 5 in Notes to Basic
Financial Statements.
Requests for Information
This financial report is designed to provide the District’s funding sources, customers, stakeholders and
other interested parties with an overview of the District’s financial operations and financial condition.
Should the reader have questions regarding the information included in this report or wish to request
additional financial information, please contact the District at 1717 E. Miraloma Avenue, Placentia,
California 92807 or the Finance Department at (714) 701-3040.
15
BASIC FINANCIAL STATEMENTS
2018 2017
CURRENT ASSETS:
UNRESTRICTED ASSETS:
Cash and cash equivalents (Note 2) 34,795,833$ 27,991,568$
Investments (Note 2) 2,063,675 6,920,955
Accounts receivable - water and sewer services 4,131,858 4,310,234
Accounts receivable - property taxes 21,518 19,581
Note receivable (Note 10)- 78,567
Accrued interest receivable 51,039 47,841
Prepaid expenses and deposits 170,557 289,987
Inventory 248,489 265,833
TOTAL UNRESTRICTED ASSETS 41,482,969 39,924,566
RESTRICTED ASSETS:
Cash and cash equivalents (Note 2) 593,767 5,189,724
TOTAL RESTRICTED ASSETS 593,767 5,189,724
TOTAL CURRENT ASSETS 42,076,736 45,114,290
NONCURRENT ASSETS:
Capital assets (Note 4):
Not depreciable 10,788,120 5,848,629
Depreciable, net of accumulated depreciation 183,473,005 184,811,581
Other post-employment benefit (OPEB) asset - 411,343
TOTAL NONCURRENT ASSETS 194,261,125 191,071,553
TOTAL ASSETS 236,337,861 236,185,843
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amounts from pension plans 2,749,826 1,966,284
Deferred amounts from OPEB 399,599 -
Deferred loss on refunding 375,558 400,389
TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,524,983 2,366,673
(Continued)
YORBA LINDA WATER DISTRICT
STATEMENT OF NET POSITION
June 30, 2018
ASSETS AND DEFERRED OUTFLOWS
OF RESOURCES
(With comparative totals for June 30, 2017)
See accompanying notes to basic financial statements.
16
2018 2017
CURRENT LIABILITIES:
PAYABLE FROM UNRESTRICTED CURRENT ASSETS:
Accounts payable 4,969,190$ 4,497,076$
Accrued expenses 182,110 144,164
Compensated absences payable - current portion (Note 5) 438,816 404,913
Customer and construction deposits 553,128 650,848
Unearned revenue 268,592 300,263
Accrued interest payable 405,264 286,669
Certificates of Participation - current portion (Note 5) 1,140,000 1,240,000
TOTAL PAYABLE FROM UNRESTRICTED CURRENT ASSETS 7,957,100 7,523,933
PAYABLE FROM RESTRICTED ASSETS:
Retention payable 346,205 111,000
TOTAL PAYABLE FROM RESTRICTED ASSETS 346,205 111,000
TOTAL CURRENT LIABILITIES 8,303,305 7,634,933
LONG-TERM LIABILITIES (LESS CURRENT PORTION):
Unearned annexation revenue 13,607,976 14,103,022
Compensated absences (Note 5) 1,316,446 1,214,740
Certificates of Participation (Note 5) 39,122,056 40,518,033
Net pension liability (Note 7) 8,575,054 7,240,999
Net OPEB liability (Note 6) 2,273,415 -
TOTAL LONG-TERM LIABILITIES (LESS CURRENT PORTION) 64,894,947 63,076,794
TOTAL LIABILITIES 73,198,252 70,711,727
DEFERRED INFLOWS OF RESOURCES:
Deferred amounts from pension plans 639,586 753,101
Deferred amounts from OPEB 44,966 -
Deferred gain on refunding 103,171 108,265
TOTAL DEFERRED INFLOWS OF RESOURCES 787,723 861,366
NET POSITION:
Net investment in capital assets (Note 8) 154,271,627 154,273,025
Restricted:
Water conservation 104,673 1,222,452
Other post-employment benefits 247,390 -
Unrestricted 11,253,179 11,483,946
TOTAL NET POSITION 165,876,869$ 166,979,423$
YORBA LINDA WATER DISTRICT
STATEMENT OF NET POSITION
(CONTINUED)
June 30, 2018
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
(With comparative totals for June 30, 2017)
See accompanying notes to basic financial statements.
17
2018 2017
OPERATING REVENUES:
Water sales 32,082,152$ 29,326,565$
Sewer revenues 2,330,809 2,099,947
Other operating revenues 831,733 1,033,608
TOTAL OPERATING REVENUES 35,244,694 32,460,120
OPERATING EXPENSES:
Variable water costs 15,028,131 12,710,857
Personnel services 9,874,212 8,913,639
Supplies and services 4,298,863 4,504,054
Depreciation 7,465,977 7,147,369
TOTAL OPERATING EXPENSES 36,667,183 33,275,919
OPERATING INCOME (LOSS) (1,422,489) (815,799)
NONOPERATING REVENUES (EXPENSES):
Property taxes 1,749,957 1,687,384
Investment income 518,600 377,205
Interest expense (1,106,515) (1,552,896)
Other nonoperating revenues 413,465 645,562
Other nonoperating expenses (89,021) (403,597)
TOTAL NONOPERATING REVENUES (EXPENSES)1,486,486 753,658
NET INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS 63,997 (62,141)
CAPITAL CONTRIBUTIONS 3,554,123 2,665,462
CHANGES IN NET POSITION, BEFORE SPECIAL ITEM 3,618,120 2,603,321
SPECIAL ITEM (NOTE 12)(2,205,847) -
CHANGES IN NET POSITION 1,412,273 2,603,321
NET POSITION - BEGINNING OF YEAR 166,979,423 164,376,102
PRIOR-PERIOD ADJUSTMENT (NOTE 13)(2,514,827) -
NET POSITION - BEGINNING OF YEAR, AS RESTATED 164,464,596 164,376,102
NET POSITION - END OF YEAR 165,876,869$ 166,979,423$
YORBA LINDA WATER DISTRICT
STATEMENT OF REVENUES, EXPENSES,
For the year ended June 30, 2018
AND CHANGES IN NET POSITION
(With comparative totals for the year ended June 30, 2017)
See accompanying notes to basic financial statements.
18
2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 35,418,459$ 32,357,591$
Cash payments to employees for salaries and wages (9,448,361) (8,728,277)
Cash payments to suppliers of goods and services (18,576,010) (16,624,358)
Other revenues 234,874 348,061
Other expenses (89,021) (77,317)
Refund to customers (2,205,847) -
NET CASH PROVIDED BY OPERATING ACTIVITIES 5,334,094 7,275,700
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Proceeds from property taxes and assessments 1,751,697 1,681,497
NET CASH PROVIDED BY
NONCAPITAL FINANCING ACTIVITIES 1,751,697 1,681,497
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Proceeds from annexation fees and capital contributions 77,206 94,746
Acquisition and construction of capital assets (7,351,354) (5,228,389)
Proceeds from sales of capital assets 11,556 21,646
Proceeds from long-term debt issuance - 33,795,529
Payment to refunding escrow agent - (29,511,305)
Bond issuance costs - (326,280)
Principal paid on long-term liabilities (1,240,000) (1,080,000)
Interest paid on long-term liabilities (1,509,535) (1,768,613)
Payment on line of credit - (6,883,720)
NET CASH USED IN CAPITAL AND
RELATED FINANCING ACTIVITIES (10,012,127) (10,886,386)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of investments 15,984,982 18,902,845
Purchase of investments (11,385,477) (16,634,078)
Interest and investment earnings 535,139 375,788
NET CASH PROVIDED BY
INVESTING ACTIVITIES 5,134,644 2,644,555
NET INCREASE IN
CASH AND CASH EQUIVALENTS 2,208,308 715,366
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 33,181,292 32,465,926
CASH AND CASH EQUIVALENTS - END OF YEAR 35,389,600$ 33,181,292$
(Continued)
YORBA LINDA WATER DISTRICT
STATEMENT OF CASH FLOWS
For the year ended June 30, 2018
(With comparative totals for the year ended June 30, 2017)
See accompanying notes to basic financial statements.
19
2018 2017
RECONCILIATION OF OPERATING LOSS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating loss (1,422,489)$ (815,799)$
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation 7,465,977 7,147,369
Other revenues 234,874 348,061
Other expenses (89,021) (77,317)
Refund to customers (2,205,847) -
Changes in operating assets, deferred outflows of resources,
operating liabilities, and deferred inflows of resources:
(Increase) decrease in assets and deferred outflows of resources:
Accounts receivable 178,376 (93,487)
Inventory 17,344 (30,934)
Prepaid expenses and deposits 119,430 2,963
Other post-employment benefits (OPEB) asset - (135,054)
Deferred outflows of resources from pension plans (783,542) (1,253,710)
Deferred outflows of resources from OPEB (43,926) -
Increase (decrease) in liabilities and deferred inflows of resources:
Accounts payable and accrued expenses 707,319 480,601
Accrued salaries and wages 37,946 23,365
Accrued compensated absences 135,609 177,309
Customer and construction deposits (97,720) 128,881
Net pension liability 1,334,055 1,951,677
Net OPEB liability (185,742) -
Deferred inflows of resources from pension plans (113,515) (578,225)
Deferred inflows of resources from OPEB 44,966 -
Total adjustments 6,756,583 8,091,499
NET CASH PROVIDED BY OPERATING ACTIVITIES 5,334,094$ 7,275,700$
CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION:
Unrestricted 34,795,833$ 27,991,568$
Restricted 593,767 5,189,724
TOTAL CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION 35,389,600$ 33,181,292$
NONCASH INVESTING, CAPITAL, AND
RELATED FINANCING ACTIVITIES:
Amortization related to long-term debt 255,077$ 104,432$
Capital contributions 3,523,811$ 2,647,734$
(With comparative totals for the year ended June 30, 2017)
(CONTINUED)
For the year ended June 30, 2018
YORBA LINDA WATER DISTRICT
STATEMENT OF CASH FLOWS
See accompanying notes to basic financial statements.
20
21
NOTES TO BASIC FINANCIAL STATEMENTS
22
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Organization and Description of the Reporting Entity
The Yorba Linda Water District (the District) is an independent special district established in 1959, which
operates under the authority of Division 12 of the California Water Code for the purpose of providing water
and sewer services to properties within the District. The District is governed by a five member Board of
Directors elected by the voters in the area to four-year terms. The District provides two services that include
water and sewer. Water is provided to the entire service area. Sewer is provided to most of the service areas.
The District’s service area includes Yorba Linda, portions of Placentia, Anaheim, and Brea, and areas of
unincorporated Orange County. The District provides water service to approximately 79,500 residents and
sewer service to approximately 61,000 residents.
The financial statements present the District (the primary government), the Yorba Linda Water District
Public Financing Corporation (the Corporation), and the Yorba Linda Water District Financing Authority
(the Authority). The Corporation and the Authority meet the definition of a component unit and are
presented on a blended basis, as if they are part of the primary government. Although they are legally
separate entities, the governing board of the Corporation and the Authority are composed of the same
membership as the District’s Board of Directors. The District may impose its will on the Corporation and
the Authority, including the ability to appoint, hire, reassign, or dismiss management. There is also a
financial benefit/burden relationship between the District and the Corporation and the Authority.
The Corporation, a California nonprofit public benefit corporation, was formed in July 2003 for the purpose
of providing assistance to the District and other public agencies in the state of California, of which the
District is a member or is otherwise engaged in the financing, refinancing, acquiring, constructing, and
rehabilitating of facilities, land, and equipment; the sale or leasing of facilities, land, and equipment for the
use, benefit, and enjoyment of the public served by such agencies; and any other purpose incidental thereto.
There are no separate financial statements for the Corporation.
The Authority, a public agency, was organized pursuant to a Joint Exercise of Powers Agreement (the JPA
Agreement) between the District and the California Municipal Finance Authority (CMFA), dated April 11,
2017. The Authority is statutorily authorized by Article 4 of Chapter 5 of Division 7 of Title 1 of the
California Government Code and is empowered under the JPA Agreement to issue its bonds for, among
other things, the purposes of the plan of financing described herein. Separate basic financial statements
prepared for the Authority may be obtained from the Yorba Linda Water District, 1717 East Miraloma
Avenue, Placentia, CA 92870.
b. Basic Financial Statements
The basic financial statements are composed of the statement of net position, the statement of revenues,
expenses, and changes in net position, the statement of cash flows, and the notes to the basic financial
statements.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
23
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
c. Basis of Presentation
The accounts of the District are that of an enterprise fund. An enterprise fund is a proprietary type fund used
to account for operations (a) that are financed and operated in a manner similar to private business
enterprises where the intent of the governing body is that the costs (expenses) of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user charges;
or (b) where the governing body has decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
d. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the various financial
statements. Basis of accounting refers to when transactions are recorded regardless of the measurement
focus applied. The accompanying financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the economic measurement focus, all assets,
deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent)
associated with these activities are included on the statement of net position. The statement of revenues,
expenses, and changes in net position present increases (revenues) and decreases (expenses) in total net
position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
e. New Accounting Pronouncements
GASB Current-Year Standards
In fiscal year 2017-2018, the District implemented Governmental Accounting Standards Board (GASB)
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
This statement establishes standards for measuring and recognizing liabilities, deferred outflows of
resources, deferred inflows of resources, and expenses for post-employment benefits other than pension.
Accounting changes adopted to conform to the provisions of this statement should be applied retroactively.
The result of the implementation of this statement decreased the net position at July 1, 2017, of the District
by $2,514,827.
GASB 82 - Pension Issues, effective for periods beginning after June 15, 2016, except for certain provisions
on selection of assumptions, which are effective in the first reporting period in which the measurement date
of the pension liability is on or after June 15, 2017, and did not impact the District.
GASB 85 - Omnibus 2017, effective for periods beginning after June 15, 2017, and did not impact the
District.
GASB 86 - Certain Debt Extinguishment Issues, effective for periods beginning after June 15, 2017, and
did not impact the District.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
24
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
e. New Accounting Pronouncements (Continued)
GASB Pending Accounting Standards
GASB has issued the following statements, which may impact the District’s financial reporting
requirements in the future:
GASB 83 - Certain Asset Retirement Obligations, effective for periods beginning after
June 15, 2018.
GASB 84 - Fiduciary Activities, effective for periods beginning after December 15, 2018.
GASB 87 - Leases, effective for periods beginning after December 15, 2019.
GASB 88 - Certain Disclosures Related to Debt, Including Direct Borrowings and Direct
Placements, effective for periods beginning after June 15, 2018.
GASB 89 - Accounting for Interest Cost Incurred before the End of a Construction Period,
effective for periods beginning after December 15, 2019.
f. Cash and Cash Equivalents
The District considers all highly liquid investments with a maturity of three months or less at the time of
purchase to be cash equivalents.
g. Investments and Investment Policy
The District has adopted an investment policy directing the District’s General Manager or Finance Manager
to invest, reinvest, sell, or exchange securities.
Investments are stated at fair value, which is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. Changes
in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year.
Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon
the liquidation or sale of investments.
h. Accounts Receivable
The District extends credit to customers in the normal course of operations. Management has evaluated the
accounts and believes they are all collectible. Management evaluates all accounts receivable and, if it is
determined that they are uncollectible, they are written off as a bad debt expense. A charge of $4,611 and
$9,042 was made to bad debt expense for the years ended June 30, 2018 and 2017, respectively.
i. Prepaid Expenses
Certain payments to vendors reflect costs or deposits applicable to future accounting periods and are
recorded as prepaid items in the basic financial statements.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
25
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
j. Inventory
Inventory consists primarily of materials and supplies used in the construction and maintenance of the water
and sewer systems and are stated at cost using the average-cost method on a first-in, first-out basis.
k. Capital Assets
Capital assets acquired and/or constructed are capitalized at historical cost. District policy has set the
capitalization threshold for reporting capital assets at $5,000 with an expected useful life of greater than one
year. Contributed assets are recorded at acquisition value at the date of acquisition. Upon retirement or other
disposition of capital assets, the cost and related accumulated depreciation are removed from the respective
balances and any gains or losses are recognized.
Depreciation is recorded on the straight-line basis over the estimated useful lives of the assets as follows:
Source of Supply 30 - 75 years
Pumping Plant 20 - 40 years
Water Treatment Plant 12 - 40 years
Sewer Plant 5 - 60 years
Transmission and Distribution Plant 10 - 40 years
General Plant 3 - 40 years
l. Interest Expense
The District incurs interest charges on the line of credit and certificates of participation. Interest expense of
$265,638 and $7,671 has been capitalized as an addition to the cost of construction for the years ended June
30, 2018 and 2017, respectively.
m. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents
a consumption of net position that applies to future periods and will not be recognized as an outflow of
resources (expense) until that time. The District has the following items that qualify for reporting in this
category:
Deferred outflow related to loss on refunding. A deferred loss on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred
and amortized over the shorter of the life of the refunded or refunding debt.
Deferred outflow related to pensions. This amount is equal to employer contributions made after the
measurement date of the net pension liability.
Deferred outflow related to pensions for differences between expected and actual experiences. This
amount is amortized over a closed period equal to the average of the expected remaining services
lives of all employees that are provided with pensions through the plans.
Deferred outflow from pensions resulting from changes in assumptions. This amount is amortized
over a closed period equal to the average of the expected remaining service lives of all employees
that are provided with pensions through the plans.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
26
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
m. Deferred Outflows/Inflows of Resources (Continued)
Deferred outflow related to pensions resulting from the difference in projected and actual earnings
on investments of the pension plans’ fiduciary net position. This amount is amortized over five
years.
Deferred outflow related to OPEB. This amount is equal to employer contributions made after the
measurement date of the net pension liability.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to future periods and will not be recognized as an inflow of resources
(revenue) until that time. The District has the following items that qualify for reporting in this category:
Deferred inflow related to gain on refunding. A deferred gain on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred
and amortized over the shorter of the life of the refunded or refunding debt.
Deferred inflow related to pensions for differences between expected and actual experiences. This
amount is amortized over a closed period equal to the average of the expected remaining services
lives of all employees that are provided with pensions through the plans.
Deferred inflow from pensions resulting from changes in assumptions. This amount is amortized
over a closed period equal to the average of the expected remaining service lives of all employees
that are provided with pensions through the plans.
Deferred inflow related to pensions for the changes in proportion and differences between employer
contributions and the proportionate share of contributions. This amount is amortized over a closed
period equal to the average of the expected remaining service lives of all employees that are
provided with pensions through the plans.
Deferred inflow related to OPEB resulting from the difference in projected and actual earnings on
investments of the OPEB plans’ fiduciary net position. This amount is amortized over five years.
n. Compensated Absences
The District’s policy is to permit employees to accumulate earned vacation and sick leave. The liability for
vested vacation and sick leave is recorded as an expense when earned. Employees may carry forward up to
one-and-a-half years of earned vacation days and an unlimited number of sick leave days. Upon termination
or retirement, permanent employees are entitled to receive compensation at their current base salary for all
unused eligible leave.
Permanent employees that retire in accordance with California Public Employee’s Retirement System
(CalPERS) qualifications are entitled to receive cash compensation at their current base salary for
three-eighths of all unused sick leave, and the remaining five-eighths of the unused sick leave is contributed
to the employee’s CalPERS account. The District has accrued 100% of the unused sick leave as a liability,
as it expects most employees to meet CalPERS requirements when retiring or leaving the District.
o. Construction Advances and Deposits
Construction deposits are collected by the District to cover the cost of construction projects within the
District. Funds in excess of project costs are refunded to the customer.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
27
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
p. Construction Bonding Deposits
The District’s policy is to maintain certain bonding requirements for water and sewer construction projects
performed within District boundaries to ensure the proper completion of the project. Deposited amounts are
refunded upon final approval of the project.
q. Unearned Revenue
Unearned revenue consists of customer refunds that have not been cashed.
r. Unearned Annexation Revenue
The District collects a fee from newly annexed developments for all residential and commercial properties.
This fee is in lieu of the District’s share of 40 years of the 1% property tax revenue that the District no
longer receives post-Proposition 13. The fee is a present worth value required to generate a 40-year revenue
stream equivalent to the lost property tax revenue.
The fee is calculated based on the fair market value estimate of the improved property at the time the fee is
collected and is based on the current rate of return on the District’s investments. The deposit balance
accrues interest and provides a source of operational revenue for the District and is amortized on a straight-
line basis over 40 years. This unearned revenue source may be used for capital facilities in the future if
approved by the Board of Directors.
s. Net Position
In the statement of net position, net position is classified in the following categories:
Net investment in capital assets - This amount consists of capital assets net of accumulated
depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or
improvement of the assets.
Restricted net position - This amount is restricted by external creditors, grantors, contributors, or
laws or regulations of other governments. Amounts reported in restricted net position for the years
ended June 30, 2018 and 2017, represent the following:
Amounts of $104,673 and $1,222,452, respectively, which are the balance remaining of
administrative penalty fees collected by the District that must be used for capital
improvement projects that are related to conservation efforts, water use efficiency
improvements, water conservation education, and regulatory compliance. In addition, the
June 30, 2018 balance reflects a contribution the District made to a PARS account which
has a remaining balance of $247,390.
Unrestricted net position - This amount is all net position that does not meet the definition of net
investment in capital assets or restricted net position.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
28
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
t. Net Position Flow Assumptions
Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond
or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net
position and unrestricted - net position in the statement of net position, a flow assumption must be made
about the order in which the resources are considered to be applied.
It is the District’s practice to consider restricted - net position to have been depleted before unrestricted - net
position is applied.
u. Operating Revenues and Expenses
Operating revenues, such as charges for services (water sales and sewer service charges), result from
exchange transactions associated with the principal activity of the District. Nonoperating revenues, such as
property taxes, assessments, and investment income, result from nonexchange transactions or ancillary
activities in which the District receives value without directly giving equal value in exchange.
Operating expenses include the costs of providing water, sewer, and related services, administrative
expenses, and depreciation on capital assets. All expenses not meeting this definition are reported as
nonoperating expenses.
v. Property Taxes and Assessments
The Orange County Assessor’s Office assesses all real and personal property within Orange County each
year. The Orange County Tax Collector’s Office bills and collects the District’s share of property taxes and
assessments. The Orange County Treasurer’s Office remits current and delinquent property tax collections
to the District throughout the year. Property taxes in California are levied in accordance with Article XIIIA
of the State Constitution at 1% of countywide assessed valuations. This levy is allocated pursuant to state
law to the appropriate units of local governments.
Property taxes receivable at year-end are related to property taxes collected by the Orange County Tax
Collector, which have not been credited to the District’s cash balance as of June 30. The property tax
calendar is as follows:
Lien Date January 1
Levy Date July 1
Due Dates First Installment - November 1
Second Installment - March 1
Collection Dates First Installment - December 10
Second Installment - April 10
w. Water and Sewer Sales
The District recognizes water and sewer service charges based on cycle billings rendered to the customers
each month.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
29
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
x. Capital Contributions
Capital contributions represent cash and capital asset additions contributed to the District by property
owners or real estate developers desiring services that require capital expenditures or capacity commitment.
y. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the District’s CalPERS plan
and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis
as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
z. Post-Employment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to
OPEB, and OPEB expense, information about the fiduciary net position of the District’s OPEB plan and
additions to/deductions from the OPEB plan’s fiduciary net position have been determined on the same
basis as they are reported by the plan. For this purpose, the District’s OPEB plan recognizes benefit
payments when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
aa. Budgetary Policies
The District adopts annual nonappropriated budget for planning, control, and evaluation purposes.
Budgetary control and evaluation are affected by comparisons of actual revenues and expenses with planned
revenues and expenses for the period. Encumbrance accounting is not used to account for commitments
related to unperformed contracts for construction and services.
ab. Use of Estimates
The financial statements are prepared in accordance with accounting principles generally accepted in the
United States of America and, accordingly, include amounts that are based on management’s best estimates
and judgments. Accordingly, actual results could differ from the estimates.
ac. Prior-Year Data
Selected information regarding the prior year has been included in the accompanying financial statements.
This information has been included for comparison purposes only and does not represent a complete
presentation in accordance with accounting principles generally accepted in the United States of America.
Accordingly, such information should be read in conjunction with the Authority’s prior-year financial
statements from which this selected financial data was derived.
Certain amounts in the June 30, 2017 financial statements have been reclassified for comparative purposes
to conform to the presentation in the June 30, 2018 financial statements. There was no change in reported
net income or net position related to these reclassifications.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
30
NOTE 2 - CASH AND INVESTMENTS
Cash and Investments
Cash and investments as of June 30, 2018 and 2017, are reported in the accompanying statement of net position
as follows:
2018 2017
Unrestricted current assets:
Cash and cash equivalents 34,795,833$ 27,991,568$
Investments 2,063,675 6,920,955
Restricted assets:
Cash and cash equivalents 593,767 5,189,724
Total cash and investments 37,453,275$ 40,102,247$
Cash and investments as of June 30, 2018 and 2017, consisted of the following:
2018 2017
Cash on hand 1,250$ 1,250$
Deposits with financial institutions 1,142,589 1,806,502
Investments 36,309,436 38,294,495
Total cash and investments 37,453,275$ 40,102,247$
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
31
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the District’s Investment Policy
The table below identifies the investment types that are authorized for the District by the California Government
Code (or the District’s investment policy, where more restrictive). The table also identifies certain provisions of
the California Government Code (or the District’s investment policy, where more restrictive) that address
interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustees that are governed by the
provisions of debt agreements of the District, rather than the general provisions of the California Government
Code or the District’s investment policy. This table does not address investments of the employer contributions
to the other post-employment benefit trust that are governed by the trust agreement or the investments of funds
within the other post-employment benefit (OPEB) trusts that are governed by the agreement between the District
and the trustees, rather than the general provisions of the California Government Code or the District’s
Investment Policy.
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
Minimum
Credit Rating
Bank or Savings and Loans 5 years None None FDIC or FSLIC
Negotiable Certificates of Deposit 5 years 30% None
A and FDIC
collateralized
Local Agency Investment Fund N/A None None None
Orange County Commingled Investment Pool N/A None None N/A
California Asset Management Program N/A (1)None N/A
United States Treasury Bills, Notes and Bonds 5 years None None N/A
United States Government-Sponsored
Agency Securities 5 years None None N/A
Corporate Bonds 5 years 30%None A
Banker’s Acceptance 180 days 10%5%A-1
Commercial Paper 270 days 25%5%A-1
CalTRUST Investment Pool N/A None None N/A
Money Market Funds N/A 20%10%N/A
(1) Limited to bond proceeds held by the District.
N/A Not applicable
Authorized Investment Type
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by the provisions of debt agreements, rather
than the general provisions of the California Government Code or the District’s investment policy. Investments
authorized for funds held by bond trustees include, US Treasury Bills, Notes and Bonds, US Treasury
Obligations, Resolution Funding Corp (REFCORP), Prefunded Municipal Bonds, US Government-Sponsored
Agency Securities, Commercial Paper, Money Market Mutual Funds, Certificates of Deposits, Guaranteed
Investment Contracts, Banker’s Acceptance, Repurchase Agreements, and Local Agency Investment Funds.
There are no limitations on the maximum amount that can be invested in one issuer, maximum percentage
allowed, or the maximum maturity of an investment, except for the maturity of Banker’s Acceptance, which are
limited to one year and Repurchase Agreements, which are limited to 30 days.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
32
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the District manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities
so that a portion of the portfolio is maturing or coming close to maturity as necessary to provide the cash flow
and liquidity needed for operations.
Information about the sensitivity of the fair values of the District’s investments (including investments held by
bond trustee) to market interest rate fluctuations is provided by the following tables that show the distribution of
the District’s investments by maturity as of June 30, 2018 and 2017.
12 Months 13 to 24 25 to 36 37 to 48 48 to 60
or Less Months Months Months Months Total
CalTRUST Investment Pool 19,043,553$ -$ -$ -$ -$ 19,043,553$
Local Agency Investment Fund 11,745,304 - - - - 11,745,304
OPEB Trust - PARS Pooled Trust 247,390 - - - - 247,390
Negotiable Certificates of Deposits 443,752 244,263 479,012 896,648 - 2,063,675
Money Market Mutual Funds 3,209,342 - - - - 3,209,342
Held by Bond Trustee:
Money Market Mutual Funds 172 - - - - 172
Total 34,689,513$ 244,263$ 479,012$ 896,648$ -$ 36,309,436$
12 Months 13 to 24 25 to 36 37 to 48 48 to 60
or Less Months Months Months Months Total
CalTRUST Investment Pool 18,961,385$ -$ -$ -$ -$ 18,961,385$
Local Agency Investment Fund 7,333,431 - - - - 7,333,431
United States Government-Sponsored
Agency Securities 997,440 - - - - 997,440
Negotiable Certificates of Deposits 3,821,791 445,301 245,383 489,576 921,464 5,923,515
Held by Bond Trustee:
Money Market Mutual Funds 5,078,724 - - - - 5,078,724
Total 36,192,771$ 445,301$ 245,383$ 489,576$ 921,464$ 38,294,495$
Investment Type
Investment Type
Remaining Maturity (in Months)June 30, 2018
June 30, 2017 Remaining Maturity (in Months)
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
33
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented in the following table are the minimum ratings required by (where applicable) the
California Government Code, the District’s investment policy, or debt agreements and the actual Moody’s credit
rating as of June 30, 2018 and 2017, for each investment type.
Minimum Total
Legal as of Not
Rating June 30, 2018 Rated AA+AAA
CalTRUST Investment Pool N/A 19,043,553$ 17,710,872$ 1,332,681$ -$
Local Agency Investment Fund N/A 11,745,304 11,745,304 - -
OPEB Trust - PARS Pooled Trust N/A 247,390 247,390 - -
Negotiable Certificates of Deposits A 2,063,675 2,063,675 - -
Money Market Mutual Funds 3,209,342 3,209,342 - -
Held by Bond Trustee:
Money Market Mutual Funds N/A 172 172 - -
Total 36,309,436$ 34,976,755$ 1,332,681$ -$
Minimum Total
Legal as of Not
Rating June 30, 2017 Rated AA+AAA
CalTRUST Investment Pool N/A 18,961,385$ 14,868,526$ 4,092,859$ -$
Local Agency Investment Fund N/A 7,333,431 7,333,431 - -
United States Government-Sponsored
Agency Securities N/A 997,440 - - 997,440
Negotiable Certificates of Deposits A 5,923,515 5,923,515 - -
Held by Bond Trustee:
Money Market Mutual Funds N/A 5,078,724 - - 5,078,724
Total 38,294,495$ 28,125,472$ 4,092,859$ 6,076,164$
June 30, 2018
Investment Type
June 30, 2017
Investment Type
Concentration of Credit Risk
The investment policy of the District contains no limitations on the amount that can be invested in any one
issuer beyond that stipulated by the California Government Code with the exception of banker’s acceptances,
commercial paper, and money market funds, which are limited to an investment in any one issuer of 5%, 5%,
and 10%, respectively.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
34
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,
the District will not be able to recover its deposits or will not be able to recover collateral securities that are in
the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty (e.g., broker-dealer) to a transaction, the District will not be able to recover the value
of its investment or collateral securities that are in the possession of another party. With respect to investments,
custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk
does not apply to a local government’s indirect investment in securities through the use of mutual funds or
government investment pools (such as the Local Agency Investment Fund (LAIF) and CalTRUST Investment
Pool).
The California Government Code and the District’s investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the
following provision for deposits: The California Government Code requires that a financial institution secure
deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by
a depository regulated under state law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure District deposits by pledging first trust deed
mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2018 and 2017, all of the District’s deposits with financial institutions were covered by federal
depository insurance limits or were held in collateralized accounts.
Investment in State Investment Pool
The District is a voluntary participant in LAIF that is regulated by California Government Code Section 16429
under the oversight of the Treasurer of the State of California. The fair value of the District’s investment in this
pool is reported in the accompanying financial statements at amounts based upon the District’s pro rata share of
the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
Investment in CalTRUST Investment Pool
CalTRUST is a joint powers agency authority created by local public agencies to provide a convenient method
for local public agencies to pool their assets for investment purposes. CalTRUST is governed by a Board of
Trustees made up of experienced local agency treasurers and investment officers. The Board of Trustees sets
overall policies for the program and selects and supervises the activities of the investment manager and other
agents. CalTRUST maintains and administers four pooled accounts within the program: Money Market, Short-
Term, Medium-Term, and Long-Term accounts. The Money Market account permits daily transactions, with
same-day liquidity (provided redemption requests are received by 1:00 p.m. Pacific time), with no limit on the
amount of funds that may be invested. The Short-Term account permits an unlimited number of transactions per
month (with prior-day notice), with no limit on the amount of funds that may be invested. The Medium- and
Long-Term accounts permit investments, withdrawals, and transfers once per month, with five days’ advance
notice. All CalTRUST accounts comply with the limits and restrictions placed on local agency investments by
the California Government Code. CalTRUST imposes a $250,000 minimum investment; however, there is no
maximum limit. The fair value of the District’s investment in this pool is reported in the accompanying financial
statements at amounts based upon the District’s percentage interest of the fair value provided by CalTRUST for
the CalTRUST accounts (in relation to the amortized cost of that portfolio). The balance available for
withdrawal is based on the accounting records maintained by CalTRUST.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
35
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
Cash and Investments - Other Post-Employment Benefit (OPEB) Trust
The District established a trust account with the Public Agency Retirement Services (PARS) to hold assets that
are legally restricted for use in administering the District’s OPEB health plan. The OPEB trust funds’ specific
cash and investments are managed by a third-party portfolio manager under guidelines approved by the District.
The District-approved guidelines are as follows:
Risk Tolerance Moderate high mark plus
Risk Management The portfolio is constructed to control through four layers of
diversification - asset classes (cash, fixed income, equity), investment
styles (large cap, small cap, international, value growth), managers, and
securities. Disciplined mutual fund selection and monitoring process
help to drive return potential while reducing portfolio risk.
Investment Objective To provide growth of principal and income. It is expected that dividend
and interest income will comprise a significant portion of total return,
although growth through capital appreciation is equally important.
Strategic Ranges 0% - 20% Cash
40% - 60% Fixed Income
40% - 60% Equity
Fair Value Measurements
The District categorizes its fair value measurement within the fair value hierarchy established by accounting
principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs
used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical
assets, Level 2 inputs are quoted prices for similar assets in active markets, and Level 3 inputs are significant
unobservable inputs.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
36
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The District has the following recurring fair value measurements as of June 30, 2018 and 2017:
June 30, 2018 Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Negotiable Certificates of Deposit -$ 2,063,675$ -$ 2,063,675$
Total Leveled Investments -$ 2,063,675$ -$ 2,063,675
CalTRUST Investment Pool*19,043,553
Local Agency Investment Fund*11,745,304
OPEB Trust - PARS Pooled Trust*247,390
Money Market Mutual Funds*3,209,342
Held by Bond Trustee:
Money Market Mutual Funds*172
Total Investments 36,309,436$
June 30, 2017 Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
United States Government-Sponsored
Agency Securities -$ 997,440$ -$ 997,440$
Negotiable Certificates of Deposit - 5,923,515 - 5,923,515
Total Leveled Investments -$ 6,920,955$ -$ 6,920,955
CalTRUST Investment Pool*18,961,385
Local Agency Investment Fund*7,333,431
Held by Bond Trustee:
Money Market Mutual Funds*5,078,724
Total Investments 38,294,495$
* Not subject to fair value measurement hierarchy.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
37
NOTE 3 - RESTRICTED ASSETS
Restricted assets are provided by and are to be used for the following uses as of June 30, 2018 and 2017:
Use 2018 2017
Bond proceeds Repayment of debt 172$ 5,078,724$
OPEB Trust - PARS Pooled Trust Payment of OPEB benefits 247,390 -
District funds Payment of retention 346,205 111,000
Total restricted assets 593,767$ 5,189,724$
Source
NOTE 4 - CAPITAL ASSETS
Changes in capital assets for the year ended June 30, 2018, were as follows:
Balance at Deletions/ Balance at
July 1, 2017 Additions Transfers June 30, 2018
Capital assets, not depreciated:
Land, mineral, and water rights 287,419$ -$ -$ 287,419$
Construction in progress 5,561,210 11,076,270 (6,136,779) 10,500,701
Total capital assets,
not depreciated 5,848,629 11,076,270 (6,136,779) 10,788,120
Capital assets, being depreciated:
Source of supply 6,348,997 - - 6,348,997
Pumping plant 26,332,743 48,324 (31,989) 26,349,078
Water treatment plant 3,130,572 377,097 - 3,507,669
Transmission and distribution plant 224,187,455 5,317,578 (132,601) 229,372,432
General plant 21,695,614 458,314 (220,238) 21,933,690
Total capital assets,
being depreciated 281,695,381 6,201,313 (384,828) 287,511,866
Less accumulated depreciation for:
Source of supply (2,652,883) (177,083) - (2,829,966)
Pumping plant (9,421,291) (989,764) 21,060 (10,389,995)
Water treatment plant (1,930,260) (178,634) - (2,108,894)
Transmission and distribution plant (72,099,253) (5,340,119) 69,618 (77,369,754)
General plant (10,780,113) (780,377) 220,238 (11,340,252)
Total accumulated depreciation (96,883,800) (7,465,977) 310,916 (104,038,861)
Total capital assets,
being depreciated, net 184,811,581 (1,264,664) (73,912) 183,473,005
Total capital assets, net 190,660,210$ 9,811,606$ (6,210,691)$ 194,261,125$
Depreciation expense for the depreciable capital assets was $7,465,977 in 2018.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
38
NOTE 4 - CAPITAL ASSETS (CONTINUED)
Changes in capital assets for the year ended June 30, 2017, were as follows:
Balance at Deletions/ Balance at
July 1, 2016 Additions Transfers June 30, 2017
Capital assets, not depreciated:
Land, mineral, and water rights 287,419$ -$ -$ 287,419$
Construction in progress 4,717,999 7,330,282 (6,487,071) 5,561,210
Total capital assets,
not depreciated 5,005,418 7,330,282 (6,487,071) 5,848,629
Capital assets, being depreciated:
Source of supply 6,096,155 252,842 - 6,348,997
Pumping plant 25,604,231 728,512 - 26,332,743
Water treatment plant 3,130,572 - - 3,130,572
Transmission and distribution plant 218,794,863 5,392,592 - 224,187,455
General plant 21,143,220 640,653 (88,259) 21,695,614
Total capital assets,
being depreciated 274,769,041 7,014,599 (88,259) 281,695,381
Less accumulated depreciation for:
Source of supply (2,484,228) (168,655) - (2,652,883)
Pumping plant (8,499,624) (921,667) - (9,421,291)
Water treatment plant (1,750,637) (179,623) - (1,930,260)
Transmission and distribution plant (67,024,340) (5,074,913) - (72,099,253)
General plant (10,065,861) (802,511) 88,259 (10,780,113)
Total accumulated depreciation (89,824,690) (7,147,369) 88,259 (96,883,800)
Total capital assets,
being depreciated, net 184,944,351 (132,770) - 184,811,581
Total capital assets, net 189,949,769$ 7,197,512$ (6,487,071)$ 190,660,210$
Depreciation expense for the depreciable capital assets was $7,147,369 in 2017.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
39
NOTE 5 - LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2018, were as follows:
Balance Balance Due Within
July 1, 2017 Additions Deletions June 30, 2018 One Year
Certificates of Participation:
2012A Revenue Refunding Certificates
of Participation 7,230,000$ -$ (295,000)$ 6,935,000$ 310,000$
2017A Revenue Bonds 29,335,000 - (945,000) 28,390,000 830,000
Subtotal 36,565,000 - (1,240,000) 35,325,000 1,140,000
Add (Less):
2012A Premium 767,216 - (47,703) 719,513 -
2017A Premium 4,425,817 - (208,274) 4,217,543 -
Total Certificates of Participation 41,758,033 - (1,495,977) 40,262,056 1,140,000
Compensated balances 1,619,653 880,816 (745,207) 1,755,262 438,816
Total 43,377,686$ 880,816$ (2,241,184)$ 42,017,318$ 1,578,816$
Changes in long-term liabilities for the year ended June 30, 2017, were as follows:
Balance Balance Due Within
July 1, 2016 Additions Deletions June 30, 2017 One Year
Certificates of Participation:
2008 Revenue Certificates of Participation 29,865,000$ -$ (29,865,000)$ -$ -$
2012A Revenue Refunding Certificates
of Participation 7,515,000 - (285,000) 7,230,000 295,000
2017A Revenue Bonds - 29,335,000 - 29,335,000 945,000
Subtotal 37,380,000 29,335,000 (30,150,000) 36,565,000 1,240,000
Add (Less):
2008 Premium 572,435 - (572,435) - -
2012A Premium 814,919 - (47,703) 767,216 -
2017A Premium - 4,460,529 (34,712) 4,425,817 -
Total Certificates of Participation 38,767,354 33,795,529 (30,804,850) 41,758,033 1,240,000
Line of credit 6,883,720 116,280 (7,000,000) - -
Compensated balances 1,442,344 872,091 (694,782) 1,619,653 404,913
Total 47,093,418$ 34,783,900$ (38,499,632)$ 43,377,686$ 1,644,913$
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
40
NOTE 5 - LONG-TERM LIABILITIES (CONTINUED)
2012A Revenue Refunding Certificates of Participation
In September 2012, the Corporation issued $8,330,000 of Revenue Refunding Certificates of Participation,
Series 2012A (the 2012A Certificates). The 2012A Certificates were issued to provide funds (1) to advance
refund all of the currently outstanding District Certificates of Participation Series 2003 (the 2003 Certificates)
and (2) to pay costs of issuance of the 2012A Bonds. The District completed the refunding to reduce its total
debt service payments over the next 21 years by over $1.72 million, resulting in an economic gain (difference
between the present value of the old and new debt service payments) of over $1.32 million. The 2003
Certificates were paid off in October 2012.
The 2012A Certificates bear interest ranging from 2% to 5%, payable semiannually on April 1 and October 1.
There is no reserve requirement for the 2012A Certificates.
The 2012A Certificates are obligations of the Corporation payable solely from payments received from the
District pursuant to the Installment Purchase Agreement by and between the District and the Corporation. The
Installment Purchase Agreement requires the District to fix, prescribe, and collect rates and charges for the water
service that will be at least sufficient to yield during each fiscal year net revenues equal to 110% of the debt
service for such fiscal year. For fiscal years 2018 and 2017, the net revenues are equal to 263% and 281% of the
debt service, respectively.
The 2012A and 2003 Certificates are subject to federal arbitrage regulations.
At June 30, 2018 and 2017, the 2012A Certificates’ outstanding balance was $6,935,000 and $7,230,000,
respectively.
The annual debt service requirements for the 2012A Certificates outstanding at June 30, 2018, are as follows:
Year
Ending
June 30,Principal Interest Total
2019 310,000$ 281,212$ 591,212$
2020 315,000 268,712 583,712
2021 335,000 255,712 590,712
2022 345,000 241,250 586,250
2023 360,000 225,388 585,388
2024 - 2028 2,085,000 836,855 2,921,855
2029 - 2033 2,610,000 313,715 2,923,715
2034 575,000 9,344 584,344
6,935,000$ 2,432,188$ 9,367,188$
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
41
NOTE 5 - LONG-TERM LIABILITIES (CONTINUED)
2017A Revenue Bonds
In May 2017, the Authority issued $29,335,000 of Revenue Bonds, Series 2017A (the 2017A Bonds). The
2017A Bonds were issued to provide funds (1) to finance the acquisition and construction of certain
improvements to the District’s water system, (2) to advance refund all of the currently outstanding District
Revenue Certificates of Participation Series 2008, and (3) to pay costs of issuance of the 2017A Bonds. A
portion of the proceeds was deposited in an escrow fund with a trustee. The funds will be used to pay the
outstanding balance of the Revenue Certificates of Participation Series 2008. The 2008 Certificates were paid
off in October 2017. The District completed the refunding to reduce its total debt service payments over the next
21 years by more than $5.05 million, resulting in an economic gain (difference between the present value of the
old and new debt service payments) of approximately $4.22 million. At June 30, 2018 and 2017, the 2017A
Bonds’ outstanding balance was $28,390,000 and $29,335,000, respectively.
The 2017A Bonds bear interest at rates ranging from 3% to 5%, payable semiannually on April 1 and October 1.
There is no reserve requirement for the 2017A Bonds.
The 2017A Bonds are obligations of the Authority payable solely from payments received from the District
pursuant to the Installment Purchase Agreement by and between the District and the Authority. The Installment
Purchase Agreement requires the District to fix, prescribe, and collect rates and charges for the water service
that will be at least sufficient to yield during each fiscal year net revenues equal to 125% of the debt service for
such fiscal year. For fiscal years 2018 and 2017, the net revenues are equal to 263% and 281% of the debt
service, respectively.
The 2017A Bonds are subject to federal arbitrage regulations.
The annual debt service requirements for the 2017A Bonds outstanding at June 30, 2018, are as follows:
Year
Ending
June 30,Principal Interest Total
2019 830,000$ 1,317,044$ 2,147,044$
2020 860,000 1,283,244 2,143,244
2021 895,000 1,243,669 2,138,669
2022 945,000 1,197,669 2,142,669
2023 990,000 1,149,294 2,139,294
2024 - 2028 5,755,000 4,930,845 10,685,845
2029 - 2033 7,150,000 3,482,604 10,632,604
2034 - 2038 8,910,000 1,663,275 10,573,275
2039 2,055,000 51,100 2,106,100
28,390,000$ 16,318,744$ 44,708,744$
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
42
NOTE 5 - LONG-TERM LIABILITIES (CONTINUED)
Compensated Absences
Compensated absences are composed of unpaid vacation leave, sick leave, and compensating time off, which are
accrued as earned (see Note 1n).
NOTE 6 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
a. General Information about the OPEB Plan
Plan Description
The District, through an agent multiple-employer defined benefit plan, provides post-employment
health-care benefits to retirees managed through California Employers’ Retiree Benefit Trust (CEBRT).
Specifically, the District provides health (medical, dental, and vision) insurance for its retired employees
and directors, their dependent spouses (if married and covered on the District’s plan at time of retirement),
or survivors in accordance with Board of Director resolutions. Medical coverage is provided for retired
employees who are age 50 or over and who have a minimum of five years of service with the District. Only
employees hired prior to December 8, 2011, qualify for these benefits. The District pays 100% of the
premium for the retiree and two-thirds of the premium amount for eligible dependents accrued at a rate of
one year for every three years of service. Two-thirds of the premium amount of medical coverage is
provided for the surviving spouse of retired employees for the remaining vested period. The plan does not
provide a publicly available financial report.
Employees Covered
As of the June 30, 2017, actuarial valuation, the following current and former employees were covered by
the benefit terms under the plan:
Inactive employees or beneficiaries currently receiving benefits15
Active employees 48
Total 63
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
43
NOTE 6 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
a. General Information about the OPEB Plan (Continued)
Contributions
Contribution requirements are established by District policy and may be amended by the Board of
Directors. The annual contribution is based on the actuarially determined contribution. For the fiscal year
ended June 30, 2018, the District made a contribution of $257,706 to the OPEB trust and made payments
totaling $141,893 for retiree health-care insurance benefits.
b. Net OPEB Liability
The District’s net OPEB liability was measured as of June 30, 2017, and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2017. A summary
of the principal assumptions and methods used to determine the total OPEB liability is shown below.
Actuarial Assumptions
The total OPEB liability in the June 30, 2017, actuarial valuation was determined using the following
actuarial assumptions and applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2017
Measurement Date June 30, 2017
Actuarial Cost Method Entry-age normal cost method, level percent of pay
Actuarial Assumptions:
Discount Rate 6.50%
Inflation 2.75%
Projected Salary Increase 2.75% per year
Expected Long-Term Investment Rate of Return 6.50%
Health-care Cost Trend Rates 4.00% per year
Preretirement Turnover
Derived from 2014 CalPERS OPEB assumptions
model for "public agency miscellaneous"
Mortality
Derived from 2014 CalPERS OPEB assumptions
model for "public agency miscellaneous"
The actuarial assumptions used in the June 30, 2017, valuation were based on a standard set of assumptions
the actuary has used for similar valuations, modified as appropriate for the District.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
44
NOTE 6 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
b. Net OPEB Liability (Continued)
The long-term expected rate of return was determined using a building-block method in which best-estimate
ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and
inflation) are developed for each major asset class. The asset class percentages are taken from the current
composition of the California Employers’ Retiree Benefit Trust, and the expected yields are taken from a
recent CalPERS publication for the pension fund:
New Strategic Long-Term Expected
Allocation Real Rate of Return
Global equity 57.00% 5.25%
Fixed income 27.00% 0.99%
Treasury securities 5.00% 0.45%
Real estate trusts 8.00% 4.50%
Commodities 3.00% 3.90%
Total 100.00%
Asset Class
The estimated yield of 3.9% for commodities was obtained from various sources and is a rough guess.
Using these figures, the weighted-average real rate of return is estimated to be 3.73%. Adding estimated
inflation of 2.75%, the District obtains 6.48% as an estimate of the expected rate of return, which is rounded
to 6.5%.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.50%. The projection of cash flows used to
determine the discount rate assumed that the District’s contributions will be made at rates equal to the
actuarially determined contribution rates. Based on those assumptions, the plan’s fiduciary net position was
projected to be available to make all projected OPEB payments for current active and inactive employees
and beneficiaries. Therefore, the long-term expected rate of return on the plan investments was applied to
all periods of projected benefit payments to determine the total OPEB liability.
Change of Discount Rate
The discount rate utilized in the June 30, 2017, valuation was 6.50% as compared to the June 30, 2015,
valuation discount rate of 7%. The discount rate was changed due to the implementation of GASB
Statement No. 75.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
45
NOTE 6 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
c. Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2016
(Measurement Date)3,442,911$ 983,754$ 2,459,157$
Changes in the Year:
Service cost 71,330 - 71,330
Interest on the total OPEB liability 219,305 - 219,305
Contribution - employer - 355,672 (355,672)
Net investment income - 121,311 (121,311)
Administrative expenses - (606) 606
Benefit payments (137,979) (137,979) -
Net Changes 152,656 338,398 (185,742)
Balance at June 30, 2017
(Measurement Date)3,595,567$ 1,322,152$ 2,273,415$
Increase (Decrease)
Change of Assumptions
There was no change of assumptions.
Change of Benefit Terms
There was no change of benefit terms.
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
46
NOTE 6 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
c. Changes in the Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the District, as well as what the District’s net OPEB
liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or
one percentage point higher (7.50%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(5.50%) (6.50%) (7.50%)
Net OPEB Liability 2,626,437$ 2,273,415$ 1,965,207$
Sensitivity of the Net OPEB Liability to Changes in Health-care Cost Trend Rates
The following presents the net OPEB liability of the District, as well as what the District’s net OPEB
liability would be if it were calculated using health-care cost trend rates that are one percentage point lower
(3.00%) or one percentage point higher (5.00%) than the current health-care cost trend rates:
Current Health-care
1% Decrease Cost Trend Rates 1% Increase
(3.00%) (4.00%) (5.00%)
Net OPEB Liability 1,946,738$ 2,273,415$ 2,650,959$
d. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2018, the District recognized OPEB expense of $214,896. At June 30, 2018, the
District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 399,599$ -$
Differences between actual and expected experience - -
Change in assumptions - -
Differences between projected and actual earnings - 44,966
Total 399,599$ 44,966$
The net difference between projected and actual earnings on plan investments is amortized over a five-year
period.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
47
NOTE 6 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
d. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Amount of $399,599 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30,
2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized as OPEB expense as follows:
Year
Ending
June 30, Amount
2019 (11,242)$
2020 (11,242)
2021 (11,242)
2022 (11,240)
2023 -
Thereafter -
e. Payable to the OPEB Plan
At June 30, 2018, the District had no outstanding amount of contributions to the OPEB plan as required for
the year ended June 30, 2018.
NOTE 7 - PENSION PLANS
a. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the District’s separate
Miscellaneous Employee Pension Plans (Plans), which are cost-sharing multiple-employer defined benefit
pension plans administered by CalPERS. Benefit provisions under these plans are established by state
statute and District resolution. CalPERS issues publicly available reports that include a full description of
the pension plans regarding benefit provisions, assumptions, and membership information that can be found
on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death
benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full-time employment. Members with five years of total service are
eligible to retire at age 50 to 62 with statutorily reduced benefits. All members are eligible for nonindustrial
disability benefits after five years of service. The death benefit is one of the following: the Basic Death
Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living
adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
48
NOTE 7 - PENSION PLANS (CONTINUED)
a. General Information about the Pension Plans (Continued)
The Plans’ provisions and benefits in effect at June 30, 2018, are summarized as follows:
Tier I Tier II Tier III - PEPRA
Prior to On or After On or After
Hire date December 22, 2011 December 22, 2011 January 1, 2013
Benefit formula 2%@55 2%@60 2%@62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 63 50 - 63 52 - 67
Monthly benefits, as a % of eligible
compensation 1.426% to 2.418% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 7%7%6.25%
Required employer contribution rates
Normal cost rate 8.921%7.653%6.533%
Payment of unfunded liability 318,966$ 215$ 632$
Miscellaneous
Contributions
Section 20814(c) of CalPERS law requires that the employer contribution rates for all public employers be
determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a
change in the rate. The total plan contributions are determined through CalPERS’s annual actuarial
valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of
benefits earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. The District is required to contribute the difference between the actuarially determined rate and the
contribution rate of employees. District contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy contribution requirements that are identified by pension plan
terms as plan member contribution requirements are classified as plan member contributions.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
49
NOTE 7 - PENSION PLANS (CONTINUED)
b. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2018, the District reported net pension liabilities for its proportionate share of the net
pension liability of the Plans as follows:
Proportionate
Share of
Net Pension
Liability
Miscellaneous 8,575,054$
The District’s net pension liability for the Plans is measured as the proportionate share of the net pension
liability. The net pension liability of the Plans is measured as of June 30, 2017, and the total pension
liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as
of June 30, 2016, rolled forward to June 30, 2017, using standard update procedures. The District’s
proportionate share of the net pension liability was based on a projection of the District’s long-term share of
contributions to the pension plan relative to the projected contributions of all participating employers,
actuarially determined.
The District’s proportionate share of the net pension liability for the Plans as of the measurement dates
June 30, 2016 and 2017, was as follows:
Miscellaneous
Proportion - June 30, 2016 0.20844%
Proportion - June 30, 2017 0.21753%
Change - Increase (Decrease) 0.00909%
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
50
NOTE 7 - PENSION PLANS (CONTINUED)
b. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
For the year ended June 30, 2018, the District recognized pension expense of $1,287,390. At June 30, 2018,
the District reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 850,393$ -$
Differences between actual and expected experience 12,403 (177,703)
Change in assumptions 1,538,977 (117,348)
Change in employer's proportion and differences
between the employer's contributions and the
employer's proportionate share of contributions - (344,535)
Net differences between projected and actual
earnings on plan investments 348,053 -
Total 2,749,826$ (639,586)$
An amount of $850,393 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ending
June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year
Ending
June 30, Amount
2019 112,812$
2020 849,262
2021 504,417
2022 (206,644)
2023 -
Thereafter -
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
51
NOTE 7 - PENSION PLANS (CONTINUED)
b. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
Actuarial Assumptions
For the measurement period ended June 30, 2017 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2016, total pension liability determined in the June 30, 2016,
actuarial accounting valuation. The June 30, 2017, total pension liability was based on the following
actuarial methods and assumptions:
Miscellaneous
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry-age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.75%
Salary Increases (1)
Mortality Rate Table (2)
Postretirement Benefit Increase (3)
(1) Varies by entry age and service.
(2)
(3)
The mortality table used was developed based on CalPERS-specific data. The
table includes 20 years of mortality improvements using Society of Actuaries
Scale BB. For more details on this table, please refer to the April 2014 Experience
Study report (based on CalPERS demographic data from 1997 to 2011) available
on the CalPERS website.
Contract cost of living adjustment up to 2.75% until purchasing power protection
allowance floor on purchasing power applies, 2.75% thereafter.
All other actuarial assumptions used in the June 30, 2016, valuation were based on the results of an
actuarial Experience Study for the period from 1997 to 2011, including updates to salary increase,
mortality, and retirement rates. The Experience Study report can be obtained at the CalPERS website under
Forms and Publications.
Change of Assumptions
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred
outflows of resources and deferred inflows of resources for changes of assumptions represent the
unamortized portion of this assumption change and the unamortized portion of the changes of assumptions
related to prior measurement periods.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
52
NOTE 7 - PENSION PLANS (CONTINUED)
b. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for each plan and reflects the long-
term expected rate of return for the each plan, net of investment expenses and without reduction for
administrative expenses. To determine whether the municipal bond rate should be used in the calculation of
a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate
that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the
tests revealed that the assets would not run out. Therefore, the current 7.15% discount rate is appropriate
and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected
discount rate of 7.15% is applied to all plans in the Public Employees’ Retirement Fund (PERF). The cash
flows used in the testing were developed assuming that both members and employers would make their
required contributions on time and as scheduled in all future years. The stress test results are presented in a
detailed report titled “GASB Crossover Testing Report” that can be obtained from the CalPERS website
under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations, as well as the expected pension fund (PERF) cash flows. Taking into
account historical returns of all PERF asset classes (which includes the agent plan and two cost-sharing
plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short
term (first 10 years) and the long term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short term and long term, the present value of benefits was calculated for each
PERF fund. The expected rate of return was set by calculating the single equivalent expected return that
arrived at the same present value of benefits for cash flows as the one calculated using both short-term and
long-term returns. The expected rate of return was then set equivalent to the single equivalent rate
calculated above and rounded down to the nearest one quarter of one percent.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
53
NOTE 7 - PENSION PLANS (CONTINUED)
b. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
Discount Rate (Continued)
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
The target allocation shown was adopted by the CalPERS Board of Directors effective on July 1, 2014.
New Real Return Real Return
Strategic Years Years
Allocation 1 - 10 (a) 11+ (b)
Global Equity 47.00% 4.90% 5.38%
Global Fixed Income 19.00% 0.80% 2.27%
Inflation Sensitive 6.00% 0.60% 1.39%
Private Equity 12.00% 6.60% 6.63%
Real Estate 11.00% 2.80% 5.21%
Infrastructure and Forestland 3.00% 3.90% 5.36%
Liquidity 2.00% -0.40% -0.90%
Total 100.00%
(a) An expected inflation of 2.5% used for this period.
(b) An expected inflation of 3.0% used for this period.
Asset Class
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the District’s proportionate share of the net pension liability for the Plans, calculated
using the discount rate for each plan, as well as what the District’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is one-percentage point lower or
one-percentage point higher than the current rate:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 13,647,962$
Current Discount Rate 7.15%
Net Pension Liability 8,575,054$
1% Increase 8.15%
Net Pension Liability 4,373,579$
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
54
NOTE 7 - PENSION PLANS (CONTINUED)
b. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued)
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued
CalPERS financial reports.
c. Payable to the Pension Plans
At June 30, 2018, the District had no outstanding amount of contributions to the pension plans required for
the year ended June 30, 2018.
NOTE 8 - NET INVESTMENT IN CAPITAL ASSETS
The balance of net investment in capital assets consisted of the following as of June 30, 2018 and 2017:
2018 2017
Capital assets, net of accumulated depreciation 194,261,125$ 190,660,210$
Certificates of participation - current (1,140,000) (1,240,000)
Certificates of participation - long term (39,122,056) (40,518,033)
Unspent debt proceeds 172 5,078,724
Deferred amount on refunding 272,386 292,124
Net investment in capital assets 154,271,627$ 154,273,025$
NOTE 9 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts, and theft of, damage to, and destruction of assets,
errors and omissions, injuries to employees, and natural disasters. In an effort to manage its risk exposure, the
District is a member of the Association of California Water Agencies Joint Powers Insurance Authority
(the Insurance Authority).
The Insurance Authority is a risk-pooling self-insurance authority created under provisions of California
Government Code Sections 6500 et seq. The purpose of the Insurance Authority is to arrange and administer
programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage.
At June 30, 2018, as a member of the Insurance Authority, the District participated in the insurance programs as
follows:
General, auto liability, and public officials’ and employee’s error and omissions: Total risk financing
self-insurance limits of $5,000,000, combined single limit at $5,000,000 per occurrence. The Insurance
Authority purchases additional excess coverage layers of $55 million for general, auto and public
officials liability, which increases the limits on the insurance coverage noted above.
Employee dishonesty coverage of up to $100,000 per loss, includes public employee dishonesty, forgery
or alteration, and theft, disappearance, and destruction coverages, subject to a $1,000 deductible per
occurrence.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
55
NOTE 9 - RISK MANAGEMENT (CONTINUED)
Property loss is paid at the replacement cost for property on file if replaced within two years after the
loss, otherwise paid on an actual cash value basis. The District’s Retrospective Allocation Point
(deductible) is $25,000 per occurrence. The Insurance Authority is self-insured for the first $100,000
and purchases excess coverage of up to $500 million limited to insurable value ($29,146,579), subject to
a $1,000 deductible, except for a $500 deductible on vehicles.
Boiler and machinery coverage for the replacement cost of up to $150 million per occurrence limited to
insurable value, subject to various deductibles depending on the type of equipment.
Workers’ compensation insurance of up to California statutory limits for all work related
injuries/illnesses covered by California law. The Insurance Authority is self-insured to $2,000,000 and
has purchased excess insurance to the statutory limit.
Cyber security coverage is $3 million per occurrence with $50,000 deductible per occurrence limited to
the insurable value.
Settled claims have not exceeded any of the coverage amounts in any of the last three fiscal years, and there
were no reductions in the District’s insurance coverage during the years ended 2018, 2017, and 2016. Liabilities
are recorded when it is probable that a loss has been incurred and the amount of the loss can be reasonably
estimated net of the respective insurance coverage. Liabilities include an amount for claims that have been
incurred but not reported. There were no claims payable as of June 30, 2018, 2017, and 2016.
NOTE 10 - PRE-ANNEXATION AGREEMENT
In June 2008, the District entered into a pre-annexation agreement with Placentia Yorba Linda Unified School
District (PYLUSD) whereby the District intends to provide access to water and sewer service to PYLUSD for
the benefit of a property that PYLUSD wishes to develop for public high school use. Per the agreement,
PYLUSD agreed to fund additional District reservoir improvements equal to the cost of constructing an
additional 450,000 gallons of reservoir storage. The cost for the additional water storage was estimated to be
approximately $1.50 per gallon, resulting in a total approximate cost of $675,000. PYLUSD paid the District
$32,500 within 30 days of execution of the agreement. The remaining balance is payable over a nine-year period
at an annual interest rate of 4%.
Annual payments of $81,704, which include principal and interest, started in the fiscal year ended June 30,
2010. The remaining balance was paid in full during fiscal year 2017-2018. The remaining outstanding balance
at June 30, 2017, was $78,567 plus interest receivable of $3,142. As of June 30, 2017, the District reservoir
improvements have been completed. The District has completed its obligation in its entirety and has earned the
rights to the entire amount. Therefore, the outstanding balance as of June 30, 2017, is recorded in the District’s
books as a note receivable.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
56
NOTE 11 - COMMITMENTS AND CONTINGENCIES
Construction Contracts
The District has a variety of agreements with private parties relating to the installation, improvement, or
modification of water facilities and distribution systems within its service area. The financing of such
construction contracts is being provided primarily from the District’s replacement reserves and advances for
construction. The District has committed to $2,061,122 and $5,421,671 of open construction contracts as of
June 30, 2018 and 2017, respectively. Construction contracts include the following:
June 30, 2018 Total Construction Balance
Approved Costs to
Contract to Date Complete
Well No. 22 1,029,565$ 765,961$ 263,604$
Lakeview Grade Separation 250,000 187,695 62,305
YLWD - Fairmont/Zone 5 BPS Project 8,225,509 7,673,247 552,262
PRS Rehabilitation Phase II 630,585 268,355 362,230
Tract 15199 Waterline Replacement 654,610 - 654,610
2018 Sewer Main CIPP Rehabilitation 166,111 - 166,111
10,956,380$ 8,895,258$ 2,061,122$
June 30, 2017 Total Construction Balance
Approved Costs to
Contract to Date Complete
Well No. 22 219,135$ 42,804$ 176,331$
Lakeview Grade Separation 250,000 - 250,000
YLWD - Fairmont/Zone 5 BPS Project 7,568,688 2,845,127 4,723,561
Richfield Road Pipeline 1,313,655 1,041,876 271,779
9,351,478$ 3,929,807$ 5,421,671$
Litigation
The District is a defendant in certain legal actions arising in the normal course of operations. In the opinion of
management and legal counsel, any liability resulting from these actions will not result in a material adverse
effect on the District’s financial statements.
NOTE 12 - SPECIAL ITEM
During the fiscal year 2017-2018, the Board of Directors approved a refund to customers of $2,205,847. These
refunds are related to the restricted net position that consists of penalty revenues assessed and collected in prior
years due to the anticipated fines from the state of $1,105,809 and a one-time refund associated with rate
charges of $1,100,038.
YORBA LINDA WATER DISTRICT
Notes to Basic Financial Statements
June 30, 2018
57
NOTE 13 - RESTATEMENT OF PRIOR-YEAR FINANCIAL STATEMENTS
The implementation of GASB Statement No. 75 requires reporting the net OPEB liability of the District’s agent
multiple employer defined benefit plan in the financial statements and is applied retroactively by restating the
net position as of the beginning of the fiscal year. The implementation of GASB Statement No. 75 resulted in a
reduction of net position by $2,514,827 as of July 1, 2017.
NOTE 14 - SUBSEQUENT EVENTS
Events occurring after June 30, 2018, have been evaluated for possible adjustments to the financial statements or
disclosure as of September 20, 2018, which is the date these financial statements were available to be issued.
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59
REQUIRED SUPPLEMENTARY INFORMATION
Fiscal year ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Measurement date June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
Plans' proportion of the net pension liability 0.08647% 0.08368% 0.07706% 0.08184%
Plans' proportionate share of the net pension liability 8,575,054$ 7,240,999$ 5,289,322$ 5,092,626$
Plans' covered - employee payroll 6,116,587$ 5,899,338$ 5,564,327$ 5,054,265$
Plans' proportionate share of the net pension liability
as a percentage of its covered - employee payroll 140.19% 122.74%95.06% 100.76%
Plans' proportionate share of the fiduciary net position
as a percentage of the Plan's total pension liability 73.31% 74.06% 83.35% 83.03%
Plans' proportionate share of aggregate
employer contributions 1,071,006$ 967,937$ 916,213$ 673,737$
Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%.
*Fiscal year 2015 was the first year of implementation; therefore, four years are shown.
YORBA LINDA WATER DISTRICT
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Last Ten Fiscal Years*
There were no changes in benefits.
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment
expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014,
measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015, measurement
date is without reduction of pension plan administrative expense.
60
Fiscal year ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Contractually required contribution
(actuarially determined)850,393$ 755,544$ 674,827$ 587,176$
Contributions in relation to the actuarially
determined contributions (850,393) (755,544) (674,827) (587,176)
Contribution deficiency (excess)-$ -$ -$ -$
Covered - employee payroll 6,561,629$ 6,116,587$ 5,899,338$ 5,564,327$
Contributions as a percentage of covered -
employee payroll 12.96% 12.35% 11.44% 10.55%
Notes to Schedule:
Valuation Date 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Methods and Assumptions Used to Determine Contribution Rates:
Cost-sharing employers Entry age**
Amortization method Level percentage of payroll, closed**
Asset valuation method Market value***
Inflation 2.75%**
Salary increases Depending on age, service, and type of employment**
Investment rate of return 7.50%, net of pension plan investment expense, including inflation**
Retirement age
Mortality
* Fiscal year 2015 was the first year of implementation; therefore, four years are shown.
** The valuation for June 30, 2012, 2013, and 2014 (applicable to fiscal years ended June 30, 2015, 2016, and 2017, respectively)
included the same actuarial assumptions.
*** The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015), valued assets using a 15-Year
Smoothed Market method. The market value asset valuation method was utilized for the June 30, 2013, 2014, and 2015,
valuations (applicable to fiscal years ended June 30, 2016, 2017, and 2018, respectively).
YORBA LINDA WATER DISTRICT
SCHEDULE OF CONTRIBUTIONS - DEFINED BENEFIT PENSION PLANS
Last Ten Fiscal Years*
Morality assumptions are based on mortality rates resulting from the most recent CalPERS
Experience Study adopted by the CalPERS Board.**
50 for all plans with the exception of 52 for Miscellaneous PEPRA 2% @ 62**
61
Measurement date 6/30/2017
Total Pension Liability:
Service cost 71,330$
Interest on total OPEB liability 219,305
Benefit payments, including refunds of (137,979)
Net Change in Total OPEB Liability 152,656
Total OPEB Liability - Beginning of Year 3,442,911
Total OPEB Liability - End of Year (a) 3,595,567
Plan Fiduciary Net Position:
Contributions - employer 355,672
Net investment income 121,311
Administrative expenses (606)
Benefit payments (137,979)
Net Change in Plan Fiduciary Net Position 338,398
Plan Fiduciary Net Position - Beginning of Year 983,754
Plan Fiduciary Net Position - End of Year (b) 1,322,152
Net OPEB Liability - Ending (a)-(b) 2,273,415$
Plan fiduciary net position as a percentage of the
total OPEB liability 36.77%
Covered - employee payroll 4,498,586$
Net OPEB liability as percentage of
covered - employee payroll 50.54%
Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
* Fiscal year 2018 was the first year of implementation; therefore, only one year is shown.
YORBA LINDA WATER DISTRICT
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years*
There were no changes in benefits.
There were no changes in assumptions.
62
6/30/2018
Actuarially determined contribution 257,706$
Contributions in relation to the actuarially determined contributions (399,599)
Contribution deficiency (excess)(141,893)$
Covered - employee payroll 4,698,671$
Contributions as a percentage of covered - employee payroll 8.50%
Notes to Schedule:
Valuation Date 6/30/2017
Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age
Amortization method Level percentage of payroll, closed
Asset valuation method Market Value
Inflation 2.75%
Salary increases 2.75%
Investment rate of return 6.50%
Mortality
*Fiscal year 2018 was the first year of implementation; therefore, only one year is shown.
2014 CalPERS OPEB Assumptions Model
YORBA LINDA WATER DISTRICT
SCHEDULE OF CONTRIBUTIONS - OPEB
Last Ten Fiscal Years*
63
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65
SUPPLEMENTARY INFORMATION
Water Sewer Total
CURRENT ASSETS:
UNRESTRICTED ASSETS:
Cash and cash equivalents 29,026,904$ 5,768,929$ 34,795,833$
Investments 1,860,005 203,670 2,063,675
Accounts receivable - water and sewer services 3,884,879 246,979 4,131,858
Accounts receivable - property taxes 16,774 4,744 21,518
Accrued interest receivable 38,693 12,346 51,039
Prepaid expenses and deposits 170,557 - 170,557
Inventory 248,489 - 248,489
TOTAL UNRESTRICTED ASSETS 35,246,301 6,236,668 41,482,969
RESTRICTED ASSETS:
Cash and cash equivalents 593,767 - 593,767
TOTAL RESTRICTED ASSETS 593,767 - 593,767
TOTAL CURRENT ASSETS 35,840,068 6,236,668 42,076,736
NONCURRENT ASSETS:
Capital assets:
Not depreciable 10,642,238 145,882 10,788,120
Depreciable, net of accumulated depreciation 145,331,943 38,141,062 183,473,005
TOTAL NONCURRENT ASSETS 155,974,181 38,286,944 194,261,125
TOTAL ASSETS 191,814,249 44,523,612 236,337,861
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amounts from pension plans 2,434,229 315,597 2,749,826
Deferred amounts from OPEB 353,737 45,862 399,599
Deferred loss on refunding 375,558 - 375,558
TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,163,524 361,459 3,524,983
(Continued)
ASSETS AND DEFERRED OUTFLOWS
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF NET POSITION
June 30, 2018
OF RESOURCES
66
Water Sewer Total
CURRENT LIABILITIES:
PAYABLE FROM UNRESTRICTED CURRENT ASSETS:
Accounts payable 4,881,397$ 87,793$ 4,969,190$
Accrued expenses 182,110 - 182,110
Compensated absences payable - current portion 438,816 - 438,816
Customer and construction deposits 456,339 96,789 553,128
Unearned revenue 268,592 - 268,592
Accrued interest payable 405,264 - 405,264
Certificates of Participation - current portion 1,140,000 - 1,140,000
TOTAL PAYABLE FROM
UNRESTRICTED CURRENT ASSETS 7,772,518 184,582 7,957,100
PAYABLE FROM RESTRICTED ASSETS:
Retention payable 346,205 - 346,205
TOTAL PAYABLE FROM RESTRICTED ASSETS 346,205 - 346,205
TOTAL CURRENT LIABILITIES 8,118,723 184,582 8,303,305
LONG-TERM LIABILITIES (LESS CURRENT PORTION):
Unearned annexation revenue 13,607,976 - 13,607,976
Compensated absences 1,316,446 - 1,316,446
Certificates of Participation 39,122,056 - 39,122,056
Net pension liability 7,590,892 984,162 8,575,054
Net OPEB liability 2,012,494 260,921 2,273,415
TOTAL LONG-TERM
LIABILITIES (LESS CURRENT PORTION) 63,649,864 1,245,083 64,894,947
TOTAL LIABILITIES 71,768,587 1,429,665 73,198,252
DEFERRED INFLOWS OF RESOURCES:
Deferred amounts from pension plans 566,179 73,407 639,586
Deferred amounts from OPEB 39,805 5,161 44,966
Deferred gain on refunding 103,171 - 103,171
TOTAL DEFERRED INFLOWS OF RESOURCES 709,155 78,568 787,723
NET POSITION:
Net investment in capital assets 115,984,683 38,286,944 154,271,627
Restricted:
Water conservation 104,673 - 104,673
Other post-employment benefits 247,390 - 247,390
Unrestricted 6,163,285 5,089,894 11,253,179
TOTAL NET POSITION 122,500,031$ 43,376,838$ 165,876,869$
June 30, 2018
LIABILITIES AND DEFERRED
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF NET POSITION
(CONTINUED)
INFLOWS OF RESOURCES
67
Water Sewer Total
OPERATING REVENUES:
Water sales 32,082,152$ -$ 32,082,152$
Sewer revenues - 2,330,809 2,330,809
Other operating revenues 763,069 68,664 831,733
TOTAL OPERATING REVENUES 32,845,221 2,399,473 35,244,694
OPERATING EXPENSES:
Variable water costs 15,028,131 - 15,028,131
Personnel services 8,828,638 1,045,574 9,874,212
Supplies and services 3,865,733 433,130 4,298,863
Depreciation 6,098,375 1,367,602 7,465,977
TOTAL OPERATING EXPENSES 33,820,877 2,846,306 36,667,183
OPERATING LOSS (975,656) (446,833) (1,422,489)
NONOPERATING REVENUES (EXPENSES):
Property taxes 1,749,957 - 1,749,957
Investment income 444,371 74,229 518,600
Interest expense (1,106,515) - (1,106,515)
Other nonoperating revenues 403,721 9,744 413,465
Other nonoperating expenses (47,465) (41,556) (89,021)
TOTAL NONOPERATING
REVENUES (EXPENSES) 1,444,069 42,417 1,486,486
NET INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS 468,413 (404,416) 63,997
CAPITAL CONTRIBUTIONS 1,907,644 1,646,479 3,554,123
CHANGES IN NET POSITION, BEFORE SPECIAL ITEM 2,376,057 1,242,063 3,618,120
SPECIAL ITEM (2,205,847) - (2,205,847)
CHANGES IN NET POSITION 170,210 1,242,063 1,412,273
NET POSITION - BEGINNING OF YEAR 124,574,437 42,404,986 166,979,423
PRIOR-PERIOD ADJUSTMENT (2,244,616) (270,211) (2,514,827)
NET POSITION - BEGINNING OF YEAR, AS RESTATED 122,329,821 42,134,775 164,464,596
NET POSITION - END OF YEAR 122,500,031$ 43,376,838$ 165,876,869$
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
For the year ended June 30, 2018
68
Water Sewer Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 33,044,210$ 2,374,249$ 35,418,459$
Cash payments to employees for salaries and wages (8,431,746) (1,016,615) (9,448,361)
Cash payments to suppliers of goods and services (18,128,973) (447,037) (18,576,010)
Other revenues 201,180 33,694 234,874
Other expenses (47,465) (41,556) (89,021)
Refund to customers (2,205,847) - (2,205,847)
NET CASH PROVIDED BY OPERATING ACTIVITIES 4,431,359 902,735 5,334,094
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Proceeds from property taxes and assessments 1,751,697 - 1,751,697
NET CASH PROVIDED BY
NONCAPITAL FINANCING ACTIVITIES 1,751,697 - 1,751,697
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Proceeds from annexation fees and capital contributions 46,895 30,311 77,206
Acquisition and construction of capital assets (7,311,989) (39,365) (7,351,354)
Proceeds from sales of capital assets 11,556 - 11,556
Principal paid on long-term liabilities (1,240,000) - (1,240,000)
Interest paid on long-term liabilities (1,509,535) - (1,509,535)
NET CASH USED IN CAPITAL AND
RELATED FINANCING ACTIVITIES (10,003,073) (9,054) (10,012,127)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of investments 15,984,982 - 15,984,982
Purchases of investments (11,357,398) (28,079) (11,385,477)
Interest and investment earnings 466,636 68,503 535,139
NET CASH PROVIDED BY
INVESTING ACTIVITIES 5,094,220 40,424 5,134,644
NET INCREASE IN
CASH AND CASH EQUIVALENTS 1,274,203 934,105 2,208,308
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 28,346,468 4,834,824 33,181,292
CASH AND CASH EQUIVALENTS - END OF YEAR 29,620,671$ 5,768,929$ 35,389,600$
(Continued)
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF CASH FLOWS
For the year ended June 30, 2018
69
Water Sewer Total
RECONCILIATION OF OPERATING LOSS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating loss (975,656)$ (446,833)$ (1,422,489)$
Adjustments to reconcile loss to
net cash provided by operating activities:
Depreciation 6,098,375 1,367,602 7,465,977
Other revenues 201,180 33,694 234,874
Other expenses (47,465) (41,556) (89,021)
Refund to customers (2,205,847) - (2,205,847)
Changes in operating assets, deferred outflows of
resources, operating liabilities and deferred inflows
of resources:
(Increase) decrease in assets and deferred outflows:
of resources:
Accounts receivable 203,144 (24,768) 178,376
Inventory 17,344 - 17,344
Prepaid expenses and deposits 119,430 - 119,430
Deferred outflows of resources from pension plans (693,616) (89,926) (783,542)
Deferred outflows of resources from OPEB (38,885) (5,041) (43,926)
Increase (decrease) in liabilities and deferred inflows
of resources:
Accounts payable and accrued expenses 734,148 (26,829) 707,319
Accrued salaries and wages 37,946 - 37,946
Accrued compensated absences 135,609 - 135,609
Customer and construction deposits (110,186) 12,466 (97,720)
Net pension liability 1,180,945 153,110 1,334,055
Net OPEB liability (164,425) (21,317) (185,742)
Deferred inflows of resources from pension plans (100,487) (13,028) (113,515)
Deferred inflows of resources from OPEB 39,805 5,161 44,966
Total adjustments 5,407,015 1,349,568 6,756,583
NET CASH PROVIDED BY
OPERATING ACTIVITIES 4,431,359$ 902,735$ 5,334,094$
CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION:
Unrestricted 29,026,904$ 5,768,929$ 34,795,833$
Restricted 593,767 - 593,767
TOTAL CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION 29,620,671$ 5,768,929$ 35,389,600$
NONCASH INVESTING, CAPITAL, AND
RELATED FINANCING ACTIVITIES:
Amortization related to long-term debt 255,977$ -$ 255,977$
Capital contributions 1,907,643$ 1,616,168$ 3,523,811$
(CONTINUED)
For the year ended June 30, 2018
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF CASH FLOWS
70
Water Sewer Total
OPERATING EXPENSES:
Variable Water Costs:
Imported water 5,973,705$ -$ 5,973,705$
OCWD replenishment assessment 5,469,856 - 5,469,856
In lieu 1,497,366 - 1,497,366
MWD connection charge 833,002 - 833,002
Fuel and power/pumping 1,254,202 - 1,254,202
Total Variable Water Costs 15,028,131 - 15,028,131
Personnel Services:
Unit salaries 5,929,459 738,340 6,667,799
Fringe benefits 2,846,131 303,431 3,149,562
Director's fees 53,048 3,803 56,851
Total Personnel Services 8,828,638 1,045,574 9,874,212
Supplies and Services:
Communications 138,958 8,676 147,634
Contractual services 400,827 29,493 430,320
Data processing 228,103 16,965 245,068
District activities 27,010 2,023 29,033
Dues and memberships 78,219 6,044 84,263
Fees and permits 244,196 10,636 254,832
Insurance 250,493 18,743 269,236
Maintenance 398,511 140,363 538,874
Materials 720,410 38,460 758,870
Noncapital equipment 123,995 26,187 150,182
Office expense 40,087 2,993 43,080
Professional services 674,815 35,565 710,380
Training 32,350 5,399 37,749
Travel and conferences 78,429 5,753 84,182
Uncollectible accounts 4,155 456 4,611
Utilities 169,758 13,299 183,057
Vehicle expense 255,417 72,075 327,492
Total Supplies and Services 3,865,733 433,130 4,298,863
Depreciation 6,098,375 1,367,602 7,465,977
TOTAL OPERATING EXPENSES 33,820,877$ 2,846,306$ 36,667,183$
YORBA LINDA WATER DISTRICT
SCHEDULE OF OPERATING EXPENSES BY COST CENTER
AND NATURE OF EXPENSES FOR WATER AND SEWER
For the year ended June 30, 2018
71
Water Sewer Total
Land, Mineral, and Water Rights:
Land 78,558$ -$ 78,558$
Water rights 86,300 - 86,300
Mineral rights 63,650 - 63,650
Land rights and easements 385 58,526 58,911
Total Land, Mineral, and Water Rights 228,893 58,526 287,419
Source of Supply:
Wells 5,784,629 - 5,784,629
MWD connection 564,368 - 564,368
Total Source of Supply 6,348,997 - 6,348,997
Pumping Plant:
Structures and improvements 13,532,628 - 13,532,628
Equipment 12,384,874 431,576 12,816,450
Total Pumping Plant 25,917,502 431,576 26,349,078
Water Treatment Plant:
Structures and improvements 1,302,811 - 1,302,811
Equipment 2,204,857 - 2,204,857
Total Water Treatment Plant 3,507,668 - 3,507,668
Transmission and Distribution Plant:
Mains 83,029,078 49,790,247 132,819,325
Reservoirs and tanks 61,565,606 - 61,565,606
Service and meter installation 7,047,491 3,439,358 10,486,849
Fire hydrants 7,579,804 - 7,579,804
Meters 9,887,847 - 9,887,847
Fire mains 745,360 - 745,360
Structures and improvements 2,875,096 - 2,875,096
Control system 3,379,060 33,485 3,412,545
Total Transmission and Distribution Plant 176,109,342 53,263,090 229,372,432
General Plant:
Structures and improvements 13,389,583 - 13,389,583
Transportation equipment 2,223,112 1,401,250 3,624,362
Power operated equipment 601,673 - 601,673
Communication equipment 532,132 - 532,132
Computer equipment 2,287,135 238,071 2,525,206
Office furniture 1,098,711 - 1,098,711
Tools, shop, and garage equipment 101,782 - 101,782
Store equipment 60,241 - 60,241
Total General Plant 20,294,369 1,639,321 21,933,690
Construction in Progress 10,413,346 87,356 10,500,702
Accumulated Depreciation (86,845,936) (17,192,925) (104,038,861)
Total Capital Assets 155,974,181$ 38,286,944$ 194,261,125$
YORBA LINDA WATER DISTRICT
SCHEDULE OF CAPITAL ASSETS
For the year ended June 30, 2018
72
Water Sewer Total
CURRENT ASSETS:
UNRESTRICTED ASSETS:
Cash and cash equivalents 23,156,744$ 4,834,824$ 27,991,568$
Investments 6,717,737 203,218 6,920,955
Accounts receivable - water and sewer services 4,088,023 222,211 4,310,234
Accounts receivable - property taxes 18,514 1,067 19,581
Note receivable 78,567 - 78,567
Accrued interest receivable 41,221 6,620 47,841
Prepaid expenses and deposits 289,987 - 289,987
Inventory 265,833 - 265,833
TOTAL UNRESTRICTED ASSETS 34,656,626 5,267,940 39,924,566
RESTRICTED ASSETS:
Cash and cash equivalents 5,189,724 - 5,189,724
TOTAL RESTRICTED ASSETS 5,189,724 - 5,189,724
TOTAL CURRENT ASSETS 39,846,350 5,267,940 45,114,290
NONCURRENT ASSETS:
Capital assets:
Not depreciable 5,694,086 154,543 5,848,629
Depreciable, net of accumulated depreciation 146,967,111 37,844,470 184,811,581
Other post-employment benefit (OPEB) asset 382,549 28,794 411,343
TOTAL NONCURRENT ASSETS 153,043,746 38,027,807 191,071,553
TOTAL ASSETS 192,890,096 43,295,747 236,185,843
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amounts from pension plans 1,740,613 225,671 1,966,284
Deferred loss on refunding 400,389 - 400,389
TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,141,002 225,671 2,366,673
(Continued)
ASSETS AND DEFERRED OUTFLOWS
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF NET POSITION
June 30, 2017
OF RESOURCES
73
Water Sewer Total
CURRENT LIABILITIES:
PAYABLE FROM UNRESTRICTED CURRENT ASSETS:
Accounts payable 4,382,454$ 114,622$ 4,497,076$
Accrued expenses 144,164 - 144,164
Compensated absences payable - current portion 404,913 - 404,913
Customer and construction deposits 566,525 84,323 650,848
Unearned revenue 300,263 - 300,263
Accrued interest payable 286,669 - 286,669
Certificates of Participation - current portion 1,240,000 - 1,240,000
TOTAL PAYABLE FROM
UNRESTRICTED CURRENT ASSETS 7,324,988 198,945 7,523,933
PAYABLE FROM RESTRICTED ASSETS:
Retention payable 111,000 - 111,000
TOTAL PAYABLE FROM RESTRICTED ASSETS 111,000 - 111,000
TOTAL CURRENT LIABILITIES 7,435,988 198,945 7,634,933
LONG-TERM LIABILITIES (LESS CURRENT PORTION):
Unearned annexation revenue 14,103,022 - 14,103,022
Compensated absences 1,214,740 - 1,214,740
Certificates of Participation 40,518,033 - 40,518,033
Net pension liability 6,409,947 831,052 7,240,999
TOTAL LONG-TERM
LIABILITIES (LESS CURRENT PORTION) 62,245,742 831,052 63,076,794
TOTAL LIABILITIES 69,681,730 1,029,997 70,711,727
DEFERRED INFLOWS OF RESOURCES:
Deferred amounts from pension plans 666,666 86,435 753,101
Deferred gain on refunding 108,265 0 108,265
TOTAL DEFERRED INFLOWS OF RESOURCES 774,931 86,435 861,366
NET POSITION:
Net investment in capital assets 116,274,012 37,999,013 154,273,025
Restricted for water conservation 1,222,452 - 1,222,452
Unrestricted 7,077,973 4,405,973 11,483,946
TOTAL NET POSITION 124,574,437$ 42,404,986$ 166,979,423$
June 30, 2017
LIABILITIES AND DEFERRED
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF NET POSITION
(CONTINUED)
INFLOWS OF RESOURCES
74
Water Sewer Total
OPERATING REVENUES:
Water sales 29,326,565$ -$ 29,326,565$
Sewer revenues - 2,099,947 2,099,947
Other operating revenues 890,594 143,014 1,033,608
TOTAL OPERATING REVENUES 30,217,159 2,242,961 32,460,120
OPERATING EXPENSES:
Variable water costs 12,710,857 - 12,710,857
Personnel services 7,926,351 987,288 8,913,639
Supplies and services 4,078,260 425,794 4,504,054
Depreciation 5,809,682 1,337,687 7,147,369
TOTAL OPERATING EXPENSES 30,525,150 2,750,769 33,275,919
OPERATING LOSS (307,991) (507,808) (815,799)
NONOPERATING REVENUES (EXPENSES):
Property taxes 1,687,384 - 1,687,384
Investment income 335,786 41,419 377,205
Interest expense (1,552,896) - (1,552,896)
Other nonoperating revenues 493,780 151,782 645,562
Other nonoperating expenses (396,208) (7,389) (403,597)
TOTAL NONOPERATING
REVENUES (EXPENSES) 567,846 185,812 753,658
NET INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS 259,855 (321,996) (62,141)
CAPITAL CONTRIBUTIONS 1,556,801 1,108,661 2,665,462
CHANGES IN NET POSITION 1,816,656 786,665 2,603,321
NET POSITION - BEGINNING OF YEAR 122,757,781 41,618,321 164,376,102
NET POSITION - END OF YEAR 124,574,437$ 42,404,986$ 166,979,423$
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
For the year ended June 30, 2017
75
Water Sewer Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 30,139,476$ 2,218,115$ 32,357,591$
Cash payments to employees for salaries and wages (7,745,279) (982,998) (8,728,277)
Cash payments to suppliers of goods and services (16,169,704) (454,654) (16,624,358)
Other revenues 177,538 170,523 348,061
Other expenses (69,928) (7,389) (77,317)
NET CASH PROVIDED BY OPERATING ACTIVITIES 6,332,103 943,597 7,275,700
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Proceeds from property taxes and assessments 1,681,497 - 1,681,497
NET CASH PROVIDED BY
NONCAPITAL FINANCING ACTIVITIES 1,681,497 - 1,681,497
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Proceeds from annexation fees and capital contributions 68,762 25,984 94,746
Acquisition and construction of capital assets (5,178,626) (49,763) (5,228,389)
Proceeds from sales of capital assets 21,646 - 21,646
Proceeds from long-term debt issuance 33,795,529 - 33,795,529
Payment to refunding escrow agent (29,511,305) - (29,511,305)
Bond issuance costs (326,280) - (326,280)
Principal paid on long-term liabilities (1,080,000) - (1,080,000)
Interest paid on long-term liabilities (1,768,613) - (1,768,613)
Proceeds from line of credit (6,883,720) - (6,883,720)
NET CASH USED IN CAPITAL AND
RELATED FINANCING ACTIVITIES (10,862,607) (23,779) (10,886,386)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of investments 18,902,845 - 18,902,845
Purchases of investments (16,614,278) (19,800) (16,634,078)
Interest and investment earnings 337,131 38,657 375,788
NET CASH PROVIDED BY
INVESTING ACTIVITIES 2,625,698 18,857 2,644,555
NET INCREASE IN
CASH AND CASH EQUIVALENTS (223,309) 938,675 715,366
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 28,569,777 3,896,149 32,465,926
CASH AND CASH EQUIVALENTS - END OF YEAR 28,346,468$ 4,834,824$ 33,181,292$
(Continued)
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF CASH FLOWS
For the year ended June 30, 2017
76
Water Sewer Total
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating loss (307,991)$ (507,808)$ (815,799)$
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Depreciation 5,809,682 1,337,687 7,147,369
Other revenues 177,538 170,523 348,061
Other expenses (69,928) (7,389) (77,317)
Changes in operating assets, deferred outflows of
resources, operating liabilities, and deferred inflows
of resources:
(Increase) decrease in assets and deferred outflows:
of resources:
Accounts receivable (69,980) (23,507) (93,487)
Inventory (30,934) - (30,934)
Prepaid expenses and deposits 2,963 - 2,963
Other post-employment benefits (OPEB) asset (125,600) (9,454) (135,054)
Deferred outflows of resources from pension plans (1,109,821) (143,889) (1,253,710)
Increase (decrease) in liabilities and deferred inflows
of resources:
Accounts payable and accrued expenses 555,888 (75,287) 480,601
Accrued salaries and wages 23,365 - 23,365
Accrued compensated absences 177,309 - 177,309
Customer and construction deposits 83,793 45,088 128,881
Net pension liability 1,727,682 223,995 1,951,677
Deferred inflows of resources from pension plans (511,863) (66,362) (578,225)
Total adjustments 6,640,094 1,451,405 8,091,499
NET CASH PROVIDED BY
OPERATING ACTIVITIES 6,332,103$ 943,597$ 7,275,700$
CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION:
Unrestricted 23,156,744$ 4,834,824$ 27,991,568$
Restricted 5,189,724 - 5,189,724
TOTAL CASH AND CASH EQUIVALENTS -
FINANCIAL STATEMENT CLASSIFICATION 28,346,468$ 4,834,824$ 33,181,292$
NONCASH INVESTING, CAPITAL ,AND
RELATED FINANCING ACTIVITIES:
Amortization related to long-term debt 104,432$ -$ 104,432$
Capital contributions 1,539,073$ 1,108,661$ 2,647,734$
(CONTINUED)
For the year ended June 30, 2017
YORBA LINDA WATER DISTRICT
COMBINING SCHEDULE OF CASH FLOWS
77
Water Sewer Total
OPERATING EXPENSES:
Variable Water Costs:
Imported water 5,032,775$ -$ 5,032,775$
OCWD replenishment assessment 5,350,574 - 5,350,574
Continuous use program - - -
MWD connection charge 1,006,565 - 1,006,565
Fuel and power/pumping 1,320,943 - 1,320,943
Total Variable Water Costs 12,710,857 - 12,710,857
Personnel Services:
Unit salaries 5,586,510 713,016 6,299,526
Fringe benefits 2,289,773 271,181 2,560,954
Director's fees 50,068 3,091 53,159
Total Personnel Services 7,926,351 987,288 8,913,639
Supplies and Services:
Board election 120,873 9,098 129,971
Communications 156,860 9,339 166,199
Contractual services 410,650 29,672 440,322
Data processing 252,819 18,940 271,759
District activities 10,179 766 10,945
Dues and memberships 85,801 6,627 92,428
Fees and permits 250,021 15,010 265,031
Insurance 238,965 17,707 256,672
Maintenance 387,583 152,343 539,926
Materials 854,396 26,062 880,458
Noncapital equipment 150,346 23,357 173,703
Office expense 36,453 2,718 39,171
Professional services 587,855 26,433 614,288
Training 38,962 5,196 44,158
Travel and conferences 46,005 2,847 48,852
Uncollectible accounts 7,703 1,339 9,042
Utilities 148,529 11,474 160,003
Vehicle expense 294,260 66,866 361,126
Total Supplies and Services 4,078,260 425,794 4,504,054
Depreciation 5,809,682 1,337,687 7,147,369
TOTAL OPERATING EXPENSES 30,525,150$ 2,750,769$ 33,275,919$
YORBA LINDA WATER DISTRICT
SCHEDULE OF OPERATING EXPENSES BY COST CENTER
AND NATURE OF EXPENSES FOR WATER AND SEWER
For the year ended June 30, 2017
78
Water Sewer Total
Land, Mineral, and Water Rights:
Land 78,558$ -$ 78,558$
Water rights 86,300 - 86,300
Mineral rights 63,650 - 63,650
Land rights and easements 385 58,526 58,911
Total Land, Mineral, and Water Rights 228,893 58,526 287,419
Source of Supply:
Wells 5,784,629 - 5,784,629
MWD connection 564,368 - 564,368
Total Source of Supply 6,348,997 - 6,348,997
Pumping Plant:
Structures and improvements 13,532,628 - 13,532,628
Equipment 12,368,539 431,576 12,800,115
Total Pumping Plant 25,901,167 431,576 26,332,743
Water Treatment Plant:
Structures and improvements 1,302,811 - 1,302,811
Equipment 1,827,761 - 1,827,761
Total Water Treatment Plant 3,130,572 - 3,130,572
Transmission and Distribution Plant:
Mains 80,637,076 48,517,727 129,154,803
Reservoirs and tanks 61,565,606 - 61,565,606
Service and meter installation 6,481,027 3,047,684 9,528,711
Fire hydrants 7,305,363 - 7,305,363
Meters 9,664,331 - 9,664,331
Fire mains 717,746 - 717,746
Structures and improvements 2,875,096 - 2,875,096
Control system 3,342,314 33,485 3,375,799
Total Transmission and Distribution Plant 172,588,559 51,598,896 224,187,455
General Plant:
Structures and improvements 13,381,591 - 13,381,591
Transportation equipment 2,160,191 1,401,250 3,561,441
Power operated equipment 601,673 - 601,673
Communication equipment 511,269 - 511,269
Computer equipment 2,146,325 238,071 2,384,396
Office furniture 1,098,711 - 1,098,711
Tools, shops, and garage equipment 96,292 - 96,292
Other - - -
Store equipment 60,241 - 60,241
Total General Plant 20,056,293 1,639,321 21,695,614
Construction in Progress 5,465,193 96,017 5,561,210
Accumulated Depreciation (81,058,477) (15,825,323) (96,883,800)
Total Capital Assets 152,661,197$ 37,999,013$ 190,660,210$
YORBA LINDA WATER DISTRICT
SCHEDULE OF CAPITAL ASSETS
For the year ended June 30, 2017
79
80
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81
STATISTICAL SECTION
82
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YORBA LINDA WATER DISTRICT
Description of Statistical Section Contents
June 30, 2018
83
This part of the District’s comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements and the note disclosures say about the
government’s overall financial health.
Contents: Pages
Financial Trends these schedules contain trend information to help the reader
understand how the District’s financial performance and well-being have changed over
time. 84
Revenue Capacity these schedules contain information to help the reader assess the
District’s most significant local revenue source, water sales. 86
Debt Capacity these schedules present information to help the reader assess the
affordability of the District’s current levels of outstanding debt and the District’s ability
to issue additional debt in the future. 88
Demographic and Economic Information these schedules offer demographic and
economic indicators to help the reader understand the environment within which the
District’s financial activities take place. 90
Operating Information these schedules contain service and infrastructure data to help
the reader understand how the information in the District’s financial report relates to
the services the District provides and the activities it performs. 92
Changes in Net Position: 2018 2017 2016 2015
Operating Revenues
Water Sales 32,082,152$ 29,326,565$ 27,820,638$ 26,446,618$
Sewer Revenues 2,330,809 2,099,947 1,849,114 1,775,676
Other Operating Revenues 831,733 1,033,608 2,665,835 1,461,106
Operating Expenses
Variable Water Costs 15,028,131 12,710,857 10,470,181 12,733,762
Personnel Services 9,874,212 8,913,639 8,096,853 7,778,763
Supplies and Services 4,298,863 4,504,054 4,355,033 3,806,900
Depreciation 7,465,977 7,147,369 7,546,407 7,432,586
Operating Income (Loss) (1,422,489) (815,799) 1,867,113 (2,068,611)
Nonoperating Revenues (Expenses)
Property Taxes 1,749,957 1,687,384 1,615,454 1,496,489
Investment Income 518,600 377,205 288,817 187,316
Interest Expense (1,106,515) (1,552,896) (1,671,539) (1,683,039)
Bond Issuance Costs - - - -
Other Nonoperating Revenues 413,465 645,562 872,420 744,572
Other Nonoperating Expenses (89,021) (403,597) (7,273) (116,528)
Total Nonoperating
Revenues (Expenses) 1,486,486 753,658 1,097,879 628,810
Net Income (Loss) Before
Capital Contributions, Special Items
and Extraordinary Items 63,997 (62,141) 2,964,992 (1,439,801)
Capital Contributions 3,554,123 2,665,462 788,445 705,848
Speical Items (2,205,847) - - -
Extraordinary Items - - - -
Changes in Net Position 3,618,120$ 2,603,321$ 3,753,437$ (733,953)$
Net Position by Component:
Net Investment in Capital Assets 154,271,627$ 154,273,025$ 153,776,247$ 157,092,210$
Restricted 352,063 1,222,452 1,603,050 -
Unrestricted 11,253,179 11,483,946 8,996,805 3,530,455
Total Net Position 165,876,869$ 166,979,423$ 164,376,102$ 160,622,665$
Source: YLWD Audited Financial Statements (Continued)
84
Yorba Linda Water District
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2014 2013 2012 2011 2010 2009
28,376,082$ 26,369,940$ 24,998,673$ 22,686,251$ 21,806,164$ 19,626,738$
1,762,816 1,762,039 1,785,804 1,274,579 1,275,980 1,259,723
1,047,625 723,577 848,238 1,035,545 1,102,143 439,302
14,673,144 13,509,336 12,275,853 11,268,306 10,688,318 10,859,328
7,529,481 7,225,729 6,979,088 6,902,995 6,677,757 6,498,959
3,849,183 4,222,398 3,811,125 3,686,333 3,576,147 4,151,058
7,315,084 6,884,213 6,595,720 5,279,860 5,153,891 4,167,958
(2,180,369) (2,986,120) (2,029,071) (2,141,119) (1,911,826) (4,351,540)
1,394,722 1,340,916 1,273,855 1,258,769 1,269,441 1,283,521
145,048 137,569 277,137 274,152 244,857 689,108
(1,715,429) (1,781,416) (1,626,190) (1,172,503) (1,170,498) (1,469,925)
- (192,410) - - - -
1,325,685 588,854 805,654 739,062 589,201 479,911
(47,948) (35,954) (108,984) (406,575) (151,300) (177,553)
1,102,078 57,559 621,472 692,905 781,701 805,062
(1,078,291) (2,928,561) (1,407,599) (1,448,214) (1,130,125) (3,546,478)
2,128,579 1,174,673 17,214,138 706,319 6,278,135 4,363,527
- - - - - -
5,000,000 - (5,000,000) - - -
6,050,288$ (1,753,888)$ 10,806,539$ (741,895)$ 5,148,010$ 817,049$
161,159,541$ 161,494,158$ 161,672,565$ 146,235,362$ 146,877,122$ 141,514,024$
- - 9,598,420 12,620,256 15,797,432 14,063,802
6,617,328 232,423 (6,228,771) (4,619,943) (7,696,984) (6,158,513)
167,776,869$ 161,726,581$ 165,042,214$ 154,235,675$ 154,977,570$ 149,419,313$
85
Fiscal Year
Yorba Linda Water District
Number of Connections
Fiscal Year
Single Family
Residential
Multi-Family
Residential
Commercial/
Industrial Irrigation
Direct Rate
(Billing Unit)
2009 21,672 228 831 855 1.79
2010 21,846 228 837 877 2.52
2011 21,701 231 833 879 2.52
2012 22,064 240 829 846 2.52
2013 22,480 158 908 933 2.52
2014 22,586 230 892 876 2.64
2015 22,649 230 898 876 2.70
2016 22,845 229 842 884 2.70
2017 22,991 232 845 902 2.70
2018 23,055 256 821 908 2.70
Source: YLWD Billing System
Last Ten Fiscal Years
86
20,000
20,500
21,000
21,500
22,000
22,500
23,000
23,500
24,000
24,500
25,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Irrigation
Commercial/ Industrial
Multi‐Family Residential
FY 2018
Customer Name Business Type Annual Revenues
% of Total
Revenues *
1 City of Yorba Linda Government 2,461,999$ 7.21%
2 Placentia Yorba Linda USD Government 379,162 1.11%
3 The Hills at Yorba Linda Homeowner's Assoc. 165,731 0.49%
4 Yorba Linda Villages Homeowner's Assoc. 141,227 0.41%
5 Fairmont Hill Community Assoc. Homeowner's Assoc. 125,092 0.37%
6 Aseptic Technology Manufacturing 112,692 0.33%
7 RRE Yorba Linda Homeowner's Assoc. 109,572 0.32%
8 Lake Park Mobile Home Community Homeowner's Assoc. 101,717 0.30%
9 Placentia Linda Hospital Hospital 94,510 0.28%
10 Amalfi Hills Community Assoc. Homeowner's Assoc. 93,235 0.27%
3,784,936$ # 11.08%
FY 2014
Customer Name Business Type Annual Revenues
% of Total
Revenues
1 City of Yorba Linda Government 1,860,227$ 5.96%
2 Placentia Unified School Government 267,442 0.86%
3 Fairmont Hill Community Association Homeowner's Assoc. 110,976 0.36%
4 Archstone Apartments Apartment Complex 108,023 0.35%
5 Yorba Linda Villages Homeowner's Assoc. 99,849 0.32%
7 The Hills at Yorba Linda Homeowner's Assoc. 94,025 0.30%
6 Lake Park Mobile Home Community Homeowner's Assoc. 53,825 0.17%
8 Woodgate Condominiums Homeowner's Assoc. 59,401 0.19%
9 Kerrigan Ranch II Community Assoc. Homeowner's Assoc. 59,149 0.19%
10 Aspetic Tech Manufacturing 55,728 0.18%
2,768,645$ # 8.88%
NOTES:
* Total "actual revenues" represents revenue generated from customer billings (water and sewer related)
Source: YLWD Billing Department
Yorba Linda Water District
Ten Largest Customers
Current and Five Years Ago
87
# Annual Revenues represents the listed customer's annual total billing for water and sewer services (including Base
Service Charges)
Wells Certificates As a Share of
Fiscal Fargo Bank of Per Per Personal
Year Line of Credit Participation Debt Connection Capita Income
2009 -$ 44,911,092$ 44,911,092$ 1,900$ 628$ 1.50%
2010 - 44,065,104 44,065,104 1,848 611 1.50%
2011 - 43,189,117 43,189,117 1,827 604 1.44%
2012 - 42,278,129 42,278,129 1,764 575 1.32%
2013 1,171,131 42,009,722 43,180,853 1,802 577 1.28%
2014 4,642,656 40,970,599 45,613,255 1,858 616 1.32%
2015 5,994,099 39,886,475 45,880,574 1,861 613 1.33%
2016 6,883,720 38,767,354 45,651,074 1,841 581 1.26%
2017 - 41,758,033 41,758,033 1,672 527 1.14%
2018 - 40,262,056 40,262,056 1,612 506 1.10%
Source: YLWD Audited Financial Statements
Last Ten Fiscal Years
Total
88
Yorba Linda Water District
Ratio of Outstanding Debt
$34,000,000
$36,000,000
$38,000,000
$40,000,000
$42,000,000
$44,000,000
$46,000,000
$48,000,000
Composition of Debt
Line of Credit
Participation
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt per Connection
Debt Service
Fiscal Operating &Net Coverage
Year Revenues Maint. Costs Revenues Principal Interest Total Ratio
2009 22,514$ 20,604$ 1,910$ 570$ 2,051$ 2,621$ 0.73
2010 24,417 19,928 4,489 825 1,951 2,776 1.62
2011 25,912 20,845 5,067 855 1,949 2,804 1.81
2012 27,818 21,950 5,868 890 1,915 2,805 2.09
2013 27,055 23,790 3,265 925 1,985 2,910 1.12
2014 29,309 24,853 4,456 965 1,813 2,778 1.60
2015 27,759 23,102 4,657 1,010 1,714 2,724 1.71
2016 30,417 21,611 8,806 1,045 1,777 2,822 3.12
2017 30,217 24,715 5,502 1,080 1,768 2,848 1.93
2018 32,845 27,723 5,122 1,240 1,509 2,749 1.86
NOTE: Excludes depreciation and debt service payments
Source: YLWD Audited Financial Statements
Yorba Linda Water District
Debt Coverage
Last Ten Fiscal Years
89
Personal Income
Year Population * City of YL Population Personal Income per Capita
2009 71,507 68,852 2,996,221,308$ 41,901$
2010 72,083 69,816 2,943,660,024 40,837
2011 71,520 70,681 2,993,957,236 41,862
2012 73,498 72,706 3,192,753,120 43,440
2013 74,861 65,777 3,374,570,547 45,078
2014 73,990 67,069 3,461,036,956 46,777
2015 74,787 67,826 3,451,134,500 46,146
2016 78,539 67,637 3,624,303,533 46,147
2017 79,170 67,890 3,654,487,200 46,160
2018 79,565 68,229 3,672,735,413 46,160
Personal Income
Year Population Unemployment Rate Personal Income per Capita
2009^ 3,139,017 9.0% 159,710,562$ 50,879$
2010#^ 3,170,721 9.8% 150,467,328 47,455
2011#^ 3,192,916 8.7% 155,323,766 48,646
2012^ 3,182,171 7.9% 160,637,055 50,480
2013^ 3,055,792 8.5% 160,072,905 52,383
2014 3,081,804 6.2% 168,966,068 54,827
2015 3,113,991 5.4% 177,412,900 56,973
2016 3,132,681 4.6% 169,792,810 54,200
2017 3,194,024 3.7% 172,509,495 54,010
2018 3,221,103 3.3% 174,062,080 54,038
NOTES: ^ No personal income data available for County of Orange, used State of California data.
# No population data available for County of Orange, used State of California data.
Sources: City of Yorba Linda CAFR
County of Orange CAFR
State of California, Employment Development Department
State of California, Department of Finance
90
County of Orange
YLWD
Yorba Linda Water District
Demographics
Last Ten Fiscal Years
2018* 2010+
Employer ^ Employees Employees
Placentia Linda Hospital 480 0.029 % 441 0.023 %
Costco Wholesale Corp. 355 0.022 % 276 0.014 %
Nobel Biocare USA, Inc. 298 0.018 % 328 0.017 %
Viasys Respiratory Care, Inc. (CareFusion) 308 0.019 %- - %
City of Yorba Linda 204 0.013 % 194 0.010 %
Sprouts 170 0.010 % 110 0.006 %
Emeritus Corporation 167 0.010 % 126 0.006 %
Office Solution 161 0.010 % 92 0.005 %
Kohl's Inc. 150 0.009 % 158 0.008 %
White House Catering 120 0.007 % 125 0.006 %
Total 2,413 0.148 % 1,850 0.095 %
NOTES: * Most current available data
+ Oldest available data
^ The Placentia- Yorba Linda Unified School District has 2,500 employees and
serves the entire communities of Yorba Linda and Placentia, and also serves
parts of the Cities of Brea, Anaheim and Fullerton. YLWD cannot provide the
number of employees working within the boundaries of Yorba Linda.
Source: City of Yorba Linda CAFR
Yorba Linda Water District
Ten Largest Employers
Current and Nine Years Ago
91
% of Total % of Total
Labor Force Labor Force
Fiscal Human
Year Administration Communications Engineering Finance Resources IT Operations Total
2009 4.0 13.0 16.0 3.0 6.0 33.0 75.0
2010 4.5 12.0 15.0 3.0 6.0 35.5 76.0
2011 5.5 11.0 14.0 3.0 7.0 37.0 77.5
2012 5.0 11.0 14.0 3.0 7.5 37.0 77.5
2013 5.0 11.0 14.0 4.5 7.5 37.0 79.0
2014 5.5 10.0 13.0 4.0 7.0 38.0 77.5
2015 7.0 10.0 13.0 4.0 5.0 38.0 77.0
2016 #8.0 10.0 13.0 6.0 5.0 40.0 82.0
2017 ##3.0 5.5 10.0 13.0 6.0 5.0 40.0 82.5
2018 4.0 1.0 10.0 14.0 6.0 5.0 40.0 80.0
NOTE: * Number of employees in each department are authorized and funded positions.
#Includes 3FTE temporary positions in relation to the SWRCB Emergency Mandate
##Includes 3 Limited-term FT and 1 Limited-term PT positions in relation to the SWRCB Emergency Mandate
Source: YLWD Human Resources Department
92
Yorba Linda Water District
Number of Employees
Last Ten Fiscal Years
Full Time Equivalent Employees by Department *
Department
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
2009 2010 2011 2012 2013 2014 2015 2016 # 2017 ## 2018
Operations
IT
Resources
Finance
Engineering
Communications
Administration
Fiscal Miles of Water Yearly Water Average Number of
Year Mains Installed*Production (MG) Production (MGD) Field Service Calls
2009 9.72 7,590 20.8 1,674
2010 9.72 6,569 18.0 1,640
2011 2.00 6,282 17.2 1,924
2012 2.02 6,780 18.6 1,693
2013 1.10 7,099 19.4 1,561
2014 0.77 7,329 20.1 1,579
2015 1.53 6,447 17.7 1,247
2016 2.86 4,408 12.1 1,873
2017 1.15 5,827 16.0 1,782
2018 1.50 6,643 18.2 1,681
Fiscal Number of Capacity by Booster Number of Capacity by
Year Booster Pumps Pump (GPM)Reservoirs Reservoir (MG)
2009 11 43,025 12 49
2010 11 43,025 12 49
2011 12 46,525 14 57
2012 12 46,525 14 57
2013 12 46,525 14 57
2014 12 46,525 14 57
2015 12 52,025 14 57
2016 12 52,025 14 57
2017 12 52,025 14 57
2018 12 52,025 14 57
MG - Millions of Gallons
MGD - Millions of Gallons per Day
GPM - Gallon per Minute
NOTE: * Miles of Water Main estimated
Sources: YLWD Asset Management Plan 2010
YLWD Operations Department
93
Yorba Linda Water District
Operating and Capacity Indicators
Last Ten Fiscal Years
94
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2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
1
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Directors
Yorba Linda Water District
Placentia, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, and the State Controller’s Minimum Audit
Requirements for California Special Districts, the financial statements of the Yorba Linda Water
District (the District) as of and for the year ended June 30, 2018, and the related notes to the financial
statements, which collectively comprise the District’s basic financial statements, and have issued our
report thereon dated September 20, 2018.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the District’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
2
Internal Control over Financial Reporting (Continued)
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed an instance of noncompliance or other matter that is
required to be reported under Government Auditing Standards and which is described below.
Compliance with Bond Requirements
Auditors’ Comment and Recommendation
During our review of long-term debt, we noted that the District did not obtain an arbitrage report
related to Revenue Bonds, Series 2017A, which was required to be completed within 55 days of the
bond year-end of October 1, 2017. We recommend that the District implements procedures to ensure
compliance with the bond requirements.
Management’s Response
Upon becoming aware of the required arbitrage report, staff immediately engaged BLX Group LLC to
prepare the calculation, which has been completed as of September 12, 2018. As a means to ensure
future compliance, staff has added this reporting requirement to our internal reporting schedule.
District’s Response to Finding
The District’s response to the finding identified in our audit is described above. The District’s response
was not subjected to the auditing procedures applied in the audit of the financial statements, and
accordingly, we express no opinion on it.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Irvine, California
September 20, 2018
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
1
Board of Directors
Yorba Linda Water District
Placentia, California
We have audited the financial statements of the Yorba Linda Water District (the District) as of and for
the year ended June 30, 2018, and have issued our report thereon dated September 20, 2018.
Professional standards require that we provide you with information about our responsibilities under
auditing standards generally accepted in the United States of America and Government Auditing
Standards, as well as certain information related to the planned scope and timing of our audit. We have
communicated such information in our planning communication letter to you dated May 22, 2018.
Professional standards also require that we communicate to you the following information related to
our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the District are described in Note 1 to the financial statements. As
discussed in Notes 1e and 13 to the financial statements, the District has recorded the net other post-
employment benefits (OPEB) liability, deferred outflows of resources, and deferred inflows of
resources related to the OPEB plan due to the adoption of Governmental Accounting Standards Board
(GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
than Pensions - An Amendment of GASB Statement No. 45, The adoption of this standard requires
retrospective application resulting in a $2,514,827 reduction of previously reported net position. No
other accounting policies were adopted, and the application of other existing polices was not changed
during the year ended June 30, 2018. We noted no transactions entered into by the District during the
year for which there is a lack of authoritative guidance or consensus. All significant transactions have
been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected.
The most sensitive estimates affecting the financial statements were as follows:
a. Management’s estimate of the fair value of investments is based on quoted prices in active
markets. When quoted prices in active markets are not available, fair values are based on
evaluated prices received by the District’s asset manager from a third-party service
provider.
2
Significant Audit Findings (Continued)
Qualitative Aspects of Accounting Practices (Continued)
Sensitive Estimates (Continued)
b. Management’s estimate of useful lives of depreciable capital assets is based on the length of
time it is believed that those assets will provide some economic benefit in the future.
c. The value of the capital assets received as a contribution from developers was based on the
developer’s acquisition cost.
d. The annual required contributions, pension expense, net pension liability, and
corresponding deferred outflows of resources and deferred inflows of resources for the
District’s public defined benefit plans with CalPERS are based on an actuarial valuation
provided by CalPERS.
e. The actuarially determined contribution, OPEB expense, net OPEB liability, and
corresponding deferred outflows of resources and deferred inflows of resources for the
District’s OPEB plan are based on actuarial valuation provided by a third party.
We evaluated key factors and assumptions used to develop these estimates in determining that they
were reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosures affecting the financial statements were
reported in Note 6 to the financial statements regarding the District’s Other Post-Employment Benefits
Plan, Note 7 regarding the pension plans, and Note 13 regarding restatement of net position.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during
the audit, other than those that are trivial, and communicate them to the appropriate level of
management. As a result of our audit-related test work, we proposed no corrections to the financial
statements.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors’ report. We are pleased to report that no such disagreements arose during the
course of our audit.
3
Significant Audit Findings (Continued)
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated September 20, 2018.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a second opinion on certain situations. If a consultation
involves application of an accounting principle to the District’s financial statements or a determination
of the type of auditor’s opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the District’s auditors. However,
these discussions occurred in the normal course of our professional relationship, and our responses
were not a condition to our retention.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis, the schedule of
proportionate share of the net pension liability, the schedule of contributions - defined benefit pension
plans, the schedule of changes in the net OPEB liability and related ratios, and the schedule of
contributions - OPEB, which are Required Supplementary Information (RSI) that supplement the
financial statements. Our procedures consisted of inquiries of management regarding the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We did not audit the RSI and do not express an opinion or
provide any assurance on the RSI.
We were engaged to report on the combining schedules, the schedule of operating expenses by cost
center and nature of expenses for water and sewer, and the schedule of capital assets, which
accompany the financial statements but are not RSI. With respect to this supplementary information,
we made certain inquiries of management and evaluated the form, content, and methods of preparing
the information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the prior
period, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying accounting
records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the
financial statements but are not RSI. Such information has not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on it.
4
Restriction on Use
This information is intended solely for the use of the Board of Directors and management of the
Yorba Linda Water District and is not intended to be, and should not be, used by anyone other than
these specified parties.
Irvine, California
September 20, 2018
ITEM NO. 9.1
AGENDA REPORT
Meeting Date: October 9, 2018
Subject:Results of Annual Assessment of Governing Board Effectiveness
DISCUSSION:
The Board of Directors previously determined to perform an assessment of the governing body's
effectiveness and its relationship with staff on an annual basis before October 31st.
Attached are the results of the surveys conducted September 2018 and February 2018 for
comparison. Please note that February's rankings changed slightly as the calculation was modified
to utilize points and median data instead of points and average data to improve accuracy.
Also, only 6 managers participated in the September survey compared to 7 in February. In order to
present an "apples to apples" data set, responses from the position not included in the September
survey were excluded from the February results.
ATTACHMENTS:
Name:Description:Type:
BOD_-_Mgmt_Assessment.pdf Backup Material Backup Material
4.00
1.00
4.00
6.00
3.00
7.00 7.00
5.00
3.003.00
2.00 2.00
6.00
3.00
7.00
5.00
4.00
3.00
0
1
2
3
4
5
6
7
8
9
10
A Supportive
Framework
Conflict
Management
Process
Teamwork Roles Community
Rapport
Staff
Relationships
Clear Sense of
Purpose
Chairperson
Leadership
Productivity
Board of Directors Median Comparison
February 2018 vs. September 2018
Very Effective Somewhat Effective Somewhat Ineffective Very Ineffective 02/18 09/18
2.00 2.00 2.00
6.00
1.50
3.00
6.00
5.50
3.50
2.00
4.50
5.00
8.00
3.50 3.50
7.50
6.00 6.00
0
1
2
3
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5
6
7
8
9
10
A Supportive
Framework
Conflict
Management
Process
Teamwork Roles Community
Rapport
Staff
Relationships
Clear Sense of
Purpose
Chairperson
Leadership
Productivity
Management Median Comparison
February 2018 vs. September 2018
Very Effective Somewhat Effective Somewhat Ineffective Very Ineffective 02/18 09/18
4
1
3
7
2
8
9
6
5
3
1
2
8
3
6
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5
7
0
1
2
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10
A Supportive
Framework
Conflict
Management
Process
Teamwork Roles Community
Rapport
Staff
Relationships
Clear Sense of
Purpose
Chairperson
Leadership
Productivity
Board of Directors Rank Comparison
February 2018 vs. September 2018
Very Effective Somewhat Effective Somewhat Ineffective Very Ineffective 02/18 09/18
2 2
4
8
1
5
7
9
6
1
4
5
9
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3
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6
0
1
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A Supportive
Framework
Conflict
Management
Process
Teamwork Roles Community
Rapport
Staff
Relationships
Clear Sense of
Purpose
Chairperson
Leadership
Productivity
Management Rank Comparison
February 2018 vs. September 2018
Very Effective Somewhat Effective Somewhat Ineffective Very Ineffective 02/18 09/18
3 1 2
8
3
6
9
5
7
Board of Directors Categories by Rank
September 2018
A Supportive Framework Conflict Management Process Teamwork
Roles Community Rapport Staff Relationships
Clear Sense of Purpose Chairperson Leadership Productivity
1 4
5
9
23
7
8
6
Management Categories by Rank
September 2018
A Supportive Framework Conflict Management Process Teamwork
Roles Community Rapport Staff Relationships
Clear Sense of Purpose Chairperson Leadership Productivity
ASSESSING GOVERNING BOARD EFFECTIVENESSSUMMARY TABULATIONBOARD OF DIRECTORS' RESPONSES (5 TOTAL)RANK DESCRIPTION02/18 09/18 % CHG 02/18 09/18 % CHG 02/18 09/18 % CHG 02/18 09/18 % CHGAA Supportive Framework 28 13 -53.6% 5.60 2.60 -53.6% 4.00 3.00 -25.0% 4 3 -25.0%BConflict Management Process 20 9 -55.0% 4.00 1.80 -55.0% 1.00 2.00 100.0%1 1 0.0%CTeamwork 24 11 -54.2% 4.80 2.20 -54.2% 4.00 2.00 -50.0% 3 2 -33.3%DRoles 34 26 -23.5% 6.80 5.20 -23.5% 6.00 6.00 0.0% 7 8 14.3%ECommunity Rapport 23 13 -43.5% 4.60 2.60 -43.5% 3.00 3.00 0.0% 2 3 50.0%FStaff Relationships 36 24 -33.3% 7.20 4.80 -33.3% 7.00 7.00 0.0% 8 6 -25.0%GClear Sense of Purpose 41 27 -34.1% 8.20 5.40 -34.1% 7.00 5.00 -28.6% 9 9 0.0%HChairperson Leadership 34 21 -38.2% 6.80 4.20 -38.2% 5.00 4.00 -20.0% 6 5 -16.7%IProductivity 31 25 -19.4% 6.20 5.00 -19.4% 3.00 3.00 0.0% 5 7 40.0%TOTAL271 169 -37.6% 6.02 3.76 -37.6% 4.00 3.00 -25.0%*Negative % change indicates improvement. Positive % change indicates decline.MANAGEMENT TEAM'S RESPONSES (6 TOTAL)RANK DESCRIPTION02/18 09/18 % CHG 02/18 09/18 % CHG 02/18 09/18 % CHG 02/18 09/18 % CHGAA Supportive Framework 13 15 15.4% 2.17 2.50 15.4% 2.00 2.00 0.0% 2 1 -50.0%BConflict Management Process 13 32 146.2% 2.17 5.33 146.2% 2.00 4.50 125.0% 2 4 100.0%CTeamwork 21 32 52.4% 3.50 5.33 52.4% 2.00 5.00 150.0% 4 5 25.0%DRoles 36 47 30.6% 6.00 7.83 30.6% 6.00 8.00 33.3% 8 9 12.5%ECommunity Rapport 13 19 46.2% 2.17 3.17 46.2% 1.50 3.50 133.3% 1 2 100.0%FStaff Relationships 22 23 4.5% 3.67 3.83 4.5% 3.00 3.50 16.7% 5 3 -40.0%GClear Sense of Purpose 35 42 20.0% 5.83 7.00 20.0% 6.00 7.50 25.0% 7 7 0.0%HChairperson Leadership 38 45 18.4% 6.33 7.50 18.4% 5.50 6.00 9.1% 9 8 -11.1%IProductivity 23 35 52.2% 3.83 5.83 52.2% 3.50 6.00 71.4% 6 6 0.0%TOTAL214 290 35.5% 3.96 5.37 35.5% 3.50 5.11 46.0%Very IneffectiveCATEGORYCATEGORYPOINTSPOINTS1-23-47-95-63-47-95-61-2Somewhat IneffectiveVery IneffectiveSomewhat IneffectiveVery EffectiveVery EffectiveSomewhat EffectiveSomewhat EffectiveMEDIANMEDIAN RANKRANKAVGAVGSurveys Conducted February and September 2018
ASSESSING GOVERNING BOARD EFFECTIVENESSRANK AND AVERAGE COMPARISONRANK COMPARISON02/18 09/18 % CHG 02/18 09/18 % CHGAA Supportive Framework 4 3 -25.0% 2 1 -50.0%RANK DESCRIPTIONBConflict Management Process 1 1 0.0% 2 4 100.0%CTeamwork 3 2 -33.3% 4 5 25.0%DRoles 7 8 14.3% 8 9 12.5%ECommunity Rapport 2 3 50.0% 1 2 100.0%FStaff Relationships 8 6 -25.0% 5 3 -40.0%GClear Sense of Purpose 9 9 0.0% 7 7 0.0%HChairperson Leadership 6 5 -16.7% 9 8 -11.1%IProductivity5 7 40.0% 6 6 0.0%MEDIAN COMPARISONNOTE:Respondents consisted of 5 Directors and 6 Managers.Negative % change indicates improvement.Positive % change indicates decline.02/18 09/18 % CHG 02/18 09/18 % CHGAA Supportive Framework 4.00 3.00 -25.0% 2.00 2.00 0.0%BConflict Management Process 1.00 2.00 100.0% 2.00 4.50 125.0%CTeamwork 4.00 2.00 -50.0% 2.00 5.00 150.0%DRoles 6.00 6.00 0.0% 6.00 8.00 33.3%ECommunity Rapport 3.00 3.00 0.0% 1.50 3.50 133.3%FStaff Relationships 7.00 7.00 0.0% 3.00 3.50 16.7%GClear Sense of Purpose 7.00 5.00 -28.6% 6.00 7.50 25.0%HChairperson Leadership 5.00 4.00 -20.0% 5.50 6.00 9.1%IProductivity 3.00 3.00 0.0% 3.50 6.00 71.4%OVERALL MEDIAN4.00 3.00 -25.0% 3.50 5.11 46.0%AVERAGE COMPARISON02/18 09/18 % CHG 02/18 09/18 % CHGAA Supportive Framework 5.60 2.60 -53.6% 2.17 2.50 15.4%BConflict Management Process 4.00 1.80 -55.0% 2.17 5.33 146.2%CTeamwork 4.80 2.20 -54.2% 3.50 5.33 52.4%DRoles 6.80 5.20 -23.5% 6.00 7.83 30.6%ECommunity Rapport 4.60 2.60 -43.5% 2.17 3.17 46.2%FStaff Relationships 7.20 4.80 -33.3% 3.67 3.83 4.5%GClear Sense of Purpose 8.20 5.40 -34.1% 5.83 7.00 20.0%HChairperson Leadership 6.80 4.20 -38.2% 6.33 7.50 18.4%IProductivity 6.20 5.00 -19.4% 3.83 5.83 52.2%OVERALL AVERAGE6.02 3.76 -37.6% 3.96 5.37 35.5%CATEGORYMGMT MEDIANCATEGORYLEGENDCATEGORY7-9 Very Ineffective5-6 Somewhat Ineffective3-4 Somewhat EffectiveMGMT RANKMGMT AVG1-2 Very EffectiveBOD RANKBOD AVGBOD MEDIANSurveys Conducted February and September 2018
ASSESSING GOVERNING BOARD EFFECTIVENESSDETAILED TABULATIONPOINT ALLOCATIONNOTE: Respondents consisted of 5 Directors and 6 Managers.0Statement is very true.1Statement is somewhat true.2Statement is somewhat untrue.3Statement is very untrue.02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/181.Board meetings start on time.1 0 1 2 0.2 0 0.17 0.33 0 0 0 010.There is agreement on who is ultimately responsible for putting items on and/or removing them 6 6 6 5 1.2 1.2 1.00 0.83 1 1 1 1from the agenda.19.The board does not spend too much time modifying or correcting the minutes at meetings. 3 0 0 0 0.6 0 0.00 0.00 0 0 0 028.Operating rules and procedures are known by all board members. 71 5 5 1.4 0.2 0.83 0.83 2 0 1 137.The agenda packet is "user friendly". 6 3 0 1 1.2 0.6 0.00 0.17 1 1 0 046.Staff provides all the significant alternatives in their staff reports. 5 3 1 2 1 0.6 0.17 0.33 1 1 0 02.All board members feel free to express their opinions. 4 2 1 5 0.8 0.40.17 0.83 0 0 0 111.Members feel free to critique each other's positions on issues.3 2 3 6 0.6 0.4 0.50 1.00 0 0 1 120.Civilized disagreement is a board strength. 4 2 2 7 0.8 0.4 0.33 1.17 0 00229."Baggage" from one argument is not carried to the next. 3 1 3 5 0.6 0.2 0.50 0.83 0 0 1 138.Decisions are usually made only after each members has had his/her say. 3 1 2 3 0.6 0.2 0.33 0.50 0 0 0 047.Members know how to keep conflict from becoming destructive. 3 1 26 0.6 0.2 0.33 1.00 0 0 0 13.All members are contributing members of the board team. 3 1 1 3 0.6 0.2 0.17 0.50 0 0 0 112.The board works well as a team. 4 2 5 8 0.8 0.4 0.83 1.33 1 0 1 121.Team members actively listen to each other. 5 4 4 7 1 0.8 0.67 1.17 0 1 1 130.While board members may have positions, minds are not made up before meetings. 3 2 7 7 0.6 0.4 1.17 1.17 1 0 1 139.Members are open with each other. 5 1 4 6 1 0.2 0.67 1.00 1 0 1 148.The board does not operate as an exclusive country club. 4 1 0 1 0.80.2 0.00 0.17 0 0 0 04.The elected body does not attempt to micro-manage. 5 7 14 15 1 1.4 2.33 2.50 1 1 3 313.Our board does not engage in solution "reengineering" at meetings. 5 5 9 12 1 1 1.50 2.00 1 1 1 222.Staff does not get overly involved in policy decisions. 5 3 2 4 1 0.60.33 0.67 1 1 0 131.Individual board members do not try to influence personnel decisions. 7 3 5 6 1.4 0.6 0.83 1.00 1 1 1 140.Board members adequately communicate goals and philosophies to staff. 8 6 6 7 1.6 1.2 1.00 1.17 2 1 1 149.The board is not complacent about its oversight responsibilities. 4 2 0 3 0.8 0.4 0.00 0.50 0 0 0 1Roles Teamwork Conflict Management Process A Supportive FrameworkPOINTSBoard Total Mgmt Total Board Avg Mgmt Avg Board Median Mgmt MedianSurveys Conducted February and September 2018Page 1 of 3
ASSESSING GOVERNING BOARD EFFECTIVENESSDETAILED TABULATIONPOINT ALLOCATIONNOTE: Respondents consisted of 5 Directors and 6 Managers.0Statement is very true.1Statement is somewhat true.2Statement is somewhat untrue.3Statement is very untrue.02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18POINTSBoard Total Mgmt Total Board Avg Mgmt Avg Board Median Mgmt Median5.While they may not like some of the decisions, people perceive the board as fair. 5 3 3 5 1 0.6 0.50 0.83 1 1 0 114.Board members avoid berating members of the audience; even if provoked. 2 2 1 6 0.4 0.4 0.17 1.00 0 0 0 123.Meaningful public participation is encouraged. 4 2 1 1 0.8 0.4 0.17 0.1700 0032.Board members keep the audience informed of each item, the issue, the background and 5 3 4 2 1 0.6 0.67 0.33 1 1 1 0possible decisions.41.Members of the audience do not feel intimidated when appearing before the board. 3 0 2 0 0.6 0 0.33 0.00 0 0 0 050.Board members take care to observe the appearance as well as the principle of impartiality. 4 3 2 5 0.8 0.6 0.33 0.83 1 1 0 16.Staff provides a recommendation on every issue no matter how controversial. 5 6 2 3 1 1.2 0.33 0.50 1 1 0 115.The board conducts timely and meaningful evaluations of the manager's performance. 8 2 6 5 1.6 0.4 1.00 0.83 2 0 1 124.Staff does not filter the information it passes on to the board. 6 3 1 1 1.2 0.6 0.17 0.17 1 1 0 033.Staff follows through as promised. 7 3 0 1 1.4 0.6 0.00 0.17 1 1 0 042.Openness and trust exists between the board and staff. 4 6 6 6 0.8 1.2 1.00 1.00 1 1 1 151.The board and staff do not surprise each other at meetings. 6 4 7 71.2 0.8 1.17 1.17 1 1 1 17.The board has an overall vision for the community. 7 6 7 10 1.4 1.2 1.17 1.67 1 1 1 216.The board has developed its own mission or goal statement. 5 1 4 4 10.2 0.67 0.67 1 0 1 125.Members know what the board's top five goals are. 9 8 8 10 1.8 1.6 1.33 1.67 2 2 1 234.Day-to-day decisions are consistent with the board's overall goals. 7 3 3 5 1.4 0.6 0.50 0.83 1 1 1 143.The board develops an annual work program with clear objectives. 9 6 7 4 1.8 1.2 1.17 0.67 2 1 1 152.Our priorities do not change too often. 4 3 6 9 0.8 0.6 1.00 1.50 1 1 1 28.The chair keeps audience members informed of board issues and actions. 6 2 5 4 1.2 0.4 0.83 0.67 1 0 1 117.The chairperson prevents dominating board members from having a disproportionate influence. 7 4 9 10 1.4 0.8 1.50 1.67 1 1 1 226.The chairperson protects board members from audience or colleague attacks. 5 2 10 9 1 0.4 1.67 1.50 1 0 2 235.The chairperson prevents premature rejection of new thoughts without a fair evaluation. 5 4 4 5 1 0.8 0.67 0.83 1 1 1 144.The chairperson does not unfairly use the powers of the position to win a point or argument. 4 2 2 7 0.8 0.4 0.33 1.17 0 0 0 153.In our meetings, the discussion rarely drifts off the subject. 77 8 10 1.4 1.4 1.33 1.67 1 1 1 2Chairperson Leadership Clear Sense of Purpose Staff RelationshipsCommunity RapportSurveys Conducted February and September 2018Page 2 of 3
ASSESSING GOVERNING BOARD EFFECTIVENESSDETAILED TABULATIONPOINT ALLOCATIONNOTE: Respondents consisted of 5 Directors and 6 Managers.0Statement is very true.1Statement is somewhat true.2Statement is somewhat untrue.3Statement is very untrue.02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18 02/18 09/18POINTSBoard Total Mgmt Total Board Avg Mgmt Avg Board Median Mgmt Median9.Our board gets things done.4 4 1 6 0.8 0.8 0.17 1.00 0 1 0 118.The board does not get stalemated over the process or procedures. 5 4 8 6 1 0.8 1.33 1.00 1 1 2 127.The board made significant progress on its top goals last year.4 3 1 8 0.8 0.6 0.17 1.33 0 1 0 136.Board members do their homework before meetings. 7 5 8 4 1.4 1 1.33 0.6711 1145.The board is not reluctant to make an important, yet controversial decision. 4 4 3 6 0.8 0.8 0.50 1.00 0 1 0 154.The board is adept at identifying and exploiting opportunities.7 5 2 5 1.4 1 0.33 0.83 1 1 0 1TOTAL271 169 214 290 1.00 0.63 0.66 0.90 1 1 1 1ProductivitySurveys Conducted February and September 2018Page 3 of 3
ITEM NO. 11.2
AGENDA REPORT
Meeting Date: October 9, 2018
Subject:Joint Agency Committee with City of Yorba Linda
(Nederhood/Jones)
· Minutes of meeting held September 10, 2018 at 4:00 p.m.
· Next meeting scheduled December 10, 2018 at 4:00 p.m. at YL City Hall.
ATTACHMENTS:
Name:Description:Type:
2018-09-10_-_Minutes_-_YLWD-City_of_YL.pdf Minutes Minutes
YLWD/CC Joint Advisory Committee Minutes September 10, 2018
Page 1 of 2
CITY OF YORBA LINDA
Land of Gracious Living
YORBA LINDA WATER DISTRICT/
CITY COUNCIL JOINT ADVISORY COMMITTEE
MEETING
MINUTES
September 10, 2018
4:00 p.m.
1.CALL TO ORDER
The Yorba Linda Water District/City Council Joint Advisory Committee meeting
convened at 4:00 p.m. in the Council Chambers at 4845 Casa Loma Avenue,
Yorba Linda.
2.PLEDGE OF ALLEGIANCE
Yorba Linda Water District General Manager Marc Marcantonio,
3.ROLL CALL
Committee Members
City Council: Gene Hernandez, Mayor
Tom Lindsey, Councilman
Water District: Al Nederhood, President
Brooke Jones, Vice President
Staff Members: Marc Marcantonio, General Manager YL Water District
Mark Pulone, City Manager City of Yorba Linda
4.PUBLIC COMMENTS
None
YLWD/CC Joint Advisory Committee Minutes September 10, 2018
Page 2 of 2
5.ACTION CALENDAR
5.1 Minutes of the YLWD/City Council Joint Advisory Committee meeting held
on June 4, 2018.
The YLWD/City Council Joint Advisory Committee approved the minutes of
the June 4, 2018 meeting.
6.DISCUSSION ITEMS
6.1 . Pending Legislation – SB 845 (Monning) and SB 998 (Dodd)
Vice President Brooke Jones summarized Senate Bills 845 and 998 and
announced that SB 845 had been defeated. He stated that SB 998 was
passed and is currently on the Governor’s desk for signature. However, the
Water District along with Association of California Water Agencies (ACWA)
continue to oppose the bill and are asking for a veto due to the
administrative burden it places on Districts, the requirement for Districts to
determine income and health status of customers and the shifting of costs
to customers who haven’t incurred those costs.
6.2 State’s Long-term Framework for Indoor/Outdoor Water Use Efficiency
Mr. Jones said that the State is determining how individual Water Serve
Areas’ Water Budgets will be calculated; new indoor standards are defined,
but not outdoor water calculations. The Water District is proactively working
to ascertain how much irrigable space exists for each of the 25,000 parcels
the District serves. Mr. Jones reviewed past drought saving techniques
which helped save water during the drought.
Julia Schultz, resident, commented on the State’s determination of
residents’ outdoor water use and asked about future water restrictions and
how that might be enforced.
General Manager Marc Marcantonio responded and said the state will
calculate an outdoor standard formula, which the district will then
implement. He stated that the Board would be studying the matter along
with public input to come up with a plan.
6.3 Future Meeting Date and Agenda Items
The Committee agreed to meet again on Monday, December 10, 2018 at
4:00 p.m. No additional items for the next Agenda were discussed.
7.ADJOURNMENT
7.1 City Manager Mark Pulone adjourned the meeting at 4:25 p.m. to the next
Yorba Linda Water District/City of Yorba Linda Joint Agency Committee
meeting on Monday, December 10, 2018 at 4:00 p.m.
ITEM NO. 13.1
AGENDA REPORT
Meeting Date: October 9, 2018
Subject:Meetings from October 10 - December 31, 2018
ATTACHMENTS:
Name:Description:Type:
BOD_-_Activities_Calendar.pdf Backup Material Backup Material
Board of Directors Activity Calendar
Event Date Time Attendance By
October
OC LAFCO Wed, Oct 10 8:15 AM Nederhood (As Needed)
YL Planning Commission Wed, Oct 10 6:30 PM Hawkins (As Needed)
MWDOC Water Policy Forum Thu, Oct 11 5:30 PM Jones/Miller/Nederhood
ACWA Regulatory Summit Tue, Oct 16 9:00 AM Miller
YL City Council Tue, Oct 16 6:30 PM Hawkins
MWDOC Board Wed, Oct 17 8:30 AM Nederhood/Jones
OCWA Luncheon Wed, Oct 17 11:30 AM Jones/Nederhood
Board of Directors Workshop Meeting Wed, Oct 17 4:30 PM
OCWD Board Wed, Oct 17 5:30 PM Miller/Jones
ACWA Region 10 Workshop Thu, Oct 18 9:00 AM Jones/Nederhood
OCSD State of the District Fri, Oct 19 8:00 AM Jones/Nederhood
CA-NV AWWA Fall Conference Mon, Oct 22 8:00 AM Jones/Nederhood
CA-NV AWWA Fall Conference Tue, Oct 23 8:00 AM Jones/Nederhood
CA-NV AWWA Fall Conference Wed, Oct 24 8:00 AM Jones/Nederhood
MWDOC/OCWD Joint Planning Committee Wed, Oct 24 8:30 AM Jones/Miller/Nederhood
YL State of the City Wed, Oct 24 5:30 PM Jones/Nederhood/Miller
OCSD Board Wed, Oct 24 6:00 PM Hawkins
YL Planning Commission Wed, Oct 24 6:30 PM Hawkins (As Needed)
CA-NV AWWA Fall Conference Thu, Oct 25 8:00 AM Jones/Nederhood
ISDOC Thu, Oct 25 11:30 AM TBD
November
WACO Fri, Nov 2 7:30 AM TBD
ISDOC Executive Committee Tue, Nov 6 7:30 AM Nederhood
YL City Council Tue, Nov 6 6:30 PM Hall
MWDOC Board Wed, Nov 7 8:30 AM Nederhood/Jones
OCSD Operations Committee Wed, Nov 7 5:00 PM Hawkins
OCWD Board Wed, Nov 7 5:30 PM Miller/Jones
Board of Directors Regular Meeting Tue, Nov 13 6:30 PM
OC LAFCO Wed, Nov 14 8:15 AM Nederhood (As Needed)
YL Planning Commission Wed, Nov 14 6:30 PM Hawkins (As Needed)
Interagency Committee Meeting with MWDOC and OCWD Mon, Nov 19 4:00 PM Nederhood/Jones
YL City Council Tue, Nov 20 6:30 PM Miller
MWDOC Board Wed, Nov 21 8:30 AM Nederhood/Jones
OCWD Board Wed, Nov 21 5:30 PM Miller/Jones
District Offices Closed Thu, Nov 22 7:00 AM
ACWA-JPIA Fall Conference Mon, Nov 26 8:00 AM Jones
ACWA-JPIA Fall Conference Tue, Nov 27 8:00 AM Jones
ACWA Groundwater Committee Tue, Nov 27 10:00 AM Jones
ACWA Water Quality Committee Tue, Nov 27 3:00 PM Miller
ACWA Fall Conference Tue, Nov 27 5:00 PM Jones/Miller/Nederhood
ACWA Fall Conference Wed, Nov 28 8:00 AM Jones/Miller/Nederhood
OCSD Board Wed, Nov 28 6:00 PM Hawkins
YL Planning Commission Wed, Nov 28 6:30 PM Hawkins (As Needed)
ACWA Fall Conference Thu, Nov 29 8:00 AM Jones/Miller/Nederhood
ACWA Fall Conference Fri, Nov 30 8:00 AM Jones/Miller/Nederhood
December
ISDOC Executive Committee Tue, Dec 4 7:30 AM Nederhood
YL City Council Tue, Dec 4 6:30 PM Nederhood
MWDOC Board Wed, Dec 5 8:30 AM Nederhood/Jones
OCSD Operations Committee Wed, Dec 5 5:00 PM Hawkins
OCWD Board Wed, Dec 5 5:30 PM Miller/Jones
MWDOC Elected Officials' Forum Thu, Dec 6 6:00 PM Hawkins/Miller
WACO Fri, Dec 7 7:30 AM Nederhood
Joint Committee Meeting with City of Yorba Linda Mon, Dec 10 4:00 PM Nederhood/Jones
Board of Directors Regular Meeting Tue, Dec 11 6:30 PM
CRWUA Annual Conference Wed, Dec 12 8:00 AM Jones/Nederhood
OC LAFCO Wed, Dec 12 8:15 AM Nederhood (As Needed)
YL Planning Commission Wed, Dec 12 6:30 PM Hawkins (As Needed)
CRWUA Annual Conference Thu, Dec 13 8:00 AM Jones/Nederhood
CRWUA Annual Conference Fri, Dec 14 8:00 AM Jones/Nederhood
YL City Council Tue, Dec 18 6:30 PM Jones
MWDOC Board Wed, Dec 19 8:30 AM Nederhood/Jones
OCWD Board Wed, Dec 19 5:30 PM Miller/Jones
OCSD Board Wed, Dec 19 6:00 PM Hawkins
District Offices Closed Tue, Dec 25 7:00 AM
As of October 2, 2018
BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING
Status of Engineering
Activities
October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
Projects in Design
•Well 22 Equipping
•Mickel Lane and Camino Verde Waterline
Replacement
•Stonehaven Water Main (Cielo Vista)
•Hidden Hills BPS Improvements (Cielo Vista)
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
PROJECT START
DATE
END
DATE
CONTRACT
AMOUNT
PAID
TO DATE
%
COMPLETE
Fairmont BPS Upgrade 11/1/2016 1/31/2019 $ 7,297,599.39 $ 7,006,139.39 96%
PRS Rehab Phase 2 3/19/2018 1/13/2019 $ 663,485.00 $ 595,305.00 90%
Tract 15199 Waterline
Replacement 6/4/2018 11/1/2018 $ 654,610.00 $ 528,975.00 81%
2018 Sewer Main
CIPP Rehab 7/9/2018 11/6/2018 $ 166,110.90 $ 159,629.00 96%
Lakeview Sewer Lift Station
Decommissioning
Late
August
2018
Late
November
2018
$ 1,520,666.24 $ - 0%
Projects in Construction
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
Fairmont Booster Pump Station Upgrade
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
PRS Rehabilitation Phase 2
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
Tract 15199 Waterline Replacement
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
Lakeview Sewer Lift Station Decommissioning
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
Water Quality
•Triennial Lead and Copper Testing
•66 participants
•Samples collected in August
•All results below the Action Level for Lead and Copper
•Participants notified of results on 9/13/18
•Report submitted to SWRCB DDW on 9/24/18
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018
Other Items
•Wireless Communications Facilities (ATS)
•CAW Nut Plains Well Treatment Unit Tour in
Sacramento
•Well 23 siting
ITEM NO. 9.2.
MATERIALS SUBMITTED BY: Rosanne Weston
MEETING DATE: October 9, 2018