HomeMy WebLinkAbout2021-06-08 - Board of Directors Meeting Agenda PacketAGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, June 8, 2021, 6:30 PM
1717 E Miraloma Ave, Placentia CA 92870
1.TELECONFERENCE INFORMATION
In an effort to help mitigate the spread of Coronavirus (COVID-19), the District will be facilitating participation in this
meeting via teleconference pursuant to Paragraph 3 of Executive Order N-29-20 issued by the Governor of
California on March 17, 2020. Information for accessing this meeting is provided below. Public comment related to
items on this agenda or other matters within the District's jurisdiction will be facilitated on the teleconference or can
be submitted in writing via e-mail to the Board Secretary (bodsecretary@ylwd.com) at least two (2) hours prior to the
start of the meeting. If you choose to submit comments via e-mail, please identify the agenda item you wish to
address. Your comments will be shared with the Board prior to the meeting. For questions regarding participation
please call 714-701-3020.
Computer/Mobile Device: https://zoom.us/j/91509782250
Telephone: 669-900-6833 or 346-248-7799
Meeting ID: 915 0978 2250
2.CALL TO ORDER
3.PLEDGE OF ALLEGIANCE
4.ROLL CALL
Phil Hawkins, President
J. Wayne Miller, PhD, Vice President
Trudi DesRoches, Director
Brooke Jones, Director
Tom Lindsey, Director
5.ADDITIONS/DELETIONS TO THE AGENDA
Items may be added to the agenda upon determination by a two-thirds vote of the Board, or a unanimous
vote if only three Directors are present, that there is a need to take immediate action which came to the
District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2))
6.PUBLIC COMMENTS
Any individual wishing to address the Board or Committee is requested to identify themselves and state
the matter on which they wish to comment. If the matter is on the agenda, the Chair 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 three minutes and must be related to matters of public interest
within the jurisdiction of the Water District. (GC 54954.3)
7.PUBLIC HEARING
7.1.Proposed Water and Sewer Rate Schedules and Charges, and Collection of
Capital (Finance) Charges on Property Tax Roll
Recommendation: That the Board of Directors conduct a public hearing on the
proposed water and sewer rate schedules and charges, and collection of capital
(finance) charges on the property tax roll. Upon conclusion of the public hearing
and in the absence of a majority protest, consider taking action on the
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associated resolutions.
While not required, advance sign-up for public comment related to this matter is
encouraged. To do so please contact the Board Secretary at
bodsecretary@ylwd.com or 714-701-3020.
The order of the public hearing shall be as follows:
1. Opening of Hearing by Presiding Officer
2. Verification of Notice of Hearing
3. Report by General Manager
4. Comments from the Public
5. Receipt of Written Communications from the Public
6. Continuation or Closing of Hearing by Presiding Officer
7. Board Discussion
8. Board Consideration of Action
7.2.Establishing New Water and Sewer Rate Schedules and Charges
Recommendation: That the Board of Directors (1) adopt Resolution No. 2021-
XX establishing new water rate schedules and charges effective July 1, 2021
and rescinding Resolution No. 2020-18; and (2) adopt Resolution No. 2021-XX
establishing new sewer rate schedules and charges effective July 1, 2021 and
rescinding Resolution No. 2019-17.
7.3.Collection of Capital (Finance) Charges on Property Tax Roll
Recommendation: That the Board of Directors adopt Resolution No. 2021-XX
electing to place capital (finance) charges on the property tax roll for collection
and remittance to the District and adopting the report to place said charges on
the property tax roll for Fiscal Year 2022.
8.CONSENT CALENDAR
All items on the consent calendar are considered routine and may be approved by a single motion. There
will be no discussion of these items unless a member of the Board, staff, or public requests separate
consideration.
8.1.Minutes of the Board of Directors Regular Meeting Held May 11, 2021
Recommendation: That the Board of Directors approve the minutes as
presented.
8.2.Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $3,064,441.03.
8.3.Budget to Actual Reports for the Month Ending April 30, 2021
Recommendation: That the Board of Directors receive and file the Budget to
Actual Reports for the Month Ending April 30, 2021.
8.4.Cash and Investment Report for Period Ending April 30, 2021
Recommendation: That the Board of Directors receive and file the Cash and
Investment Report for Period Ending April 30, 2021.
8.5.Reimbursement of Costs Incurred Before Issuance of Tax-Exempt Obligations
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for Funding of District's Capital Improvement Program
Recommendation: That the Board of Directors adopt Resolution No. 2021-XX
regarding intention to issue tax-exempt obligations for the purpose of permitting
the reimbursement of not-to-exceed $30,000,000 for incurred costs related to
the current capital improvement program which are incurred before the issuance
of tax-exempt obligations, and rescinding Resolution No. 2020-01.
8.6.Appropriations Limit for Fiscal Year 2022
Recommendation: That the Board of Directors approve Resolution No. 2021-XX
adopting the Appropriations Limit for Fiscal Year 2022.
8.7.Award of Construction Contract for the Grandview Ave and Ridge Way
Waterline Improvements
Recommendation: That the Board of Directors award the Construction Contract
for the Grandview Ave and Ridge Way Waterline Improvements to PALP, Inc
DBA Excel Paving Company for $587,585.00, Job No. 2020-61.
8.8.Terms and Conditions for Water and Sewer Service with Shea Homes, LP for
TTM 18123
Recommendation: That the Board of Directors approve the Terms and
Conditions for Water and Sewer Service with Shea Homes, LP for TTM 18123,
Job No. 202115.
8.9.Terms and Conditions for Water and Sewer Service with Joe Florentine, 4901
and 4905 Main Street
Recommendation: That the Board of Directors approve the Terms and
Conditions for Water and Sewer Service with Joe Florentine, 4901 and 4905
Main Street, Job No. 202113.
8.10.Concurring Nomination Resolution for ACWA 2022-2023 Vice President Election
Recommendation: That the Board of Directors consider adopting a concurring
resolution in support of Cathy Green, OCWD First Vice President, as a
candidate for the office of ACWA Vice President.
9.INTRODUCTIONS AND PRESENTATIONS
9.1.Elected Official Liaison Reports
9.2.Federal and State Legislative Update
10.REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1.Director's 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
(Hawkins/DesRoches) - Next meeting will be scheduled when needed.
11.2.Joint Agency Committee with City of Yorba Linda
(Hawkins/Lindsey) - Minutes of the meeting held Monday, June 7, 2021 at 4:00
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p.m. will be presented when available. Next meeting is yet to be scheduled.
11.3.Joint Agency Committee with City of Placentia
(Miller/Lindsey) - Next meeting will be scheduled when needed.
12.BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1.Meetings from June 9 - July 31, 2021
13.ADJOURNMENT
13.1.A special Board meeting is scheduled for Tuesday, June 22, 2021, at 6:30 p.m.
The next regular Board meeting will be held Tuesday, July 13, 2021. 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
Prior to the Governor’s ‘Stay-at-Home’ Executive Orders regarding COVID-19, non-exempt materials related to
open session agenda items that were distributed to a majority of the Board of Directors or Committee Members
less than seventy-two (72) hours prior to the meeting were made available for public inspection in the lobby of the
District’s Administrative building during regular business hours and posted on the District’s website shortly
thereafter (GC 54957.5). As the District’s lobby has been closed to the public in accordance with the Governor’s
Executive Orders and to help mitigate the spread of COVID-19, staff will make these materials available on the
District’s website (https://ylwd.com/) as soon as possible following receipt.
Accommodations for the Disabled
Requests for disability-related modifications or accommodations, including auxiliary aids or services, required for
participation in the above posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24
hours in advance. (GC 54954.2(a))
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ITEM NO. 7.2.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
SUBJECT:Establishing New Water and Sewer Rate Schedules and Charges
RECOMMENDATION:
That the Board of Directors (1) adopt Resolution No. 2021-XX establishing new schedules of
water rates and charges effective July 1, 2021 and rescinding Resolution No. 2020-18; and (2)
adopt Resolution No. 2021-XX establishing sewer rates and charges effective July 1, 2021
and rescinding Resolution No. 2019-17.
SUMMARY:
The last water and sewer rate study for the District was conducted in 2015, which provided
proposed rate adjustments from October 1, 2015 through June 30, 2020. The water and
wastewater industries have drastically changed over the course of that rate study’s term, and
with new legislation being implemented or pending at the State level, a new and updated
water and sewer rate study is required for the District to function in accordance with its
responsibilities.
On September 30, 2020, the Board of Directors authorized the District’s Finance Manager to
issue a Notice to Proceed with Raftelis Consultants, Inc. (“Raftelis”) to initiate a 5-Year Water
and Wastewater Rate Study (“Study”). In response, staff met with the Raftelis Team to discuss
goals and objectives to achieve with the 2020 Water and Sewer Rate Study. The objectives of
the Study included, but were not limited to, the following:
Develop long-term financial plans for the water and sewer enterprises to ensure
financial sufficiency for the operating requirements and capital obligations for each
enterprise fund.
Conduct a cost-of-service analysis and design water and sewer rates.
Develop 5-year schedules for water and sewer rates and charges to ensure compliance
with current policies as follows: (1) annual covenants for debt service are met, (2) the
District maintains its AA+ and AA ratings with Standard and Poor’s and Fitch Ratings,
and (3) the District enhances revenue stability for recovering fixed costs in compliance
with Proposition 218.
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BACKGROUND:
Raftelis presented results of the 2020 Water and Wastewater Rate Study to the Board of
Directors on February 9, 2021 and February 23, 2021. Discussion points during these
presentations included, but were not limited to, the statistical and financial data required and
used to conduct a cost-of service analysis for each individual enterprise fund, use of the data
and incorporation of the Study’s objectives to develop financial models that comply with water
use efficiency and existing regulatory requirements, and the development of 5-year rate
schedules that are fair, equitable and compliant with Proposition 218. At the recommendation
of staff, the Board of Directors received and filed the presented Amended 2020 Water and
Wastewater Rate Study results at the Board of Directors meeting on February 23, 2021. This
action of the Board enabled Raftelis to start developing the “2021 Rate Study Report” and staff
to develop the Proposition 218 Notice.
At the April 13, 2021, Board of Directors meeting, the 2021 Rate Study Report (”Report”) was
presented by Sanjay Gaur, Vice President of Raftelis. Contents of the Report provide detailed
information in relation to the Study’s scope of work, legal framework and rate setting
methodology, summaries of key findings and recommendations related to the development of
financial plans for Water and Sewer utilities, and the development of associated water and
sewer rate schedules that are equitable and in compliance with Proposition 218. The Report
follows industry-standard rate-setting methodologies set forth by the American Water Works
Association’s (AWWA) M1 Manual, Principles of Water Rates, Fees, and Charges, 7th edition
(M1 Manual) adhering to Proposition 218 requirements by developing rates that do not exceed
the proportionate cost of providing corresponding services. Upon completion of the
presentation by Ratelis, the Board of Directors received and filed the Report, approved the
text pertaining to the Prop 218 Notice, and scheduled the required public hearing for Tuesday,
June 8, 2021.
The BOD and staff is responsible for providing clean, safe and reliable drinking water to all
residents and businesses within the District’s service area and to safely and reliably collect
and transport wastewater through its extensive sewer system to maintain public health. In
order to provide for adequate funding of reserves for the maintenance and replacement of
critical infrastructure, comply with rapid and frequent changes in state and federal mandates,
and continue to provide excellent water and sewer service to District customers, staff is
recommending a rate structures as detailed in the Prop 218 Notice and the accompanying
2021 Rate Study Report.
Staff has prepared the attached resolutions, which if adopted, would implement the proposed
water and sewer rates and charges as of July 1, 2021.
ATTACHMENTS:
1.2021 Rate Study Report
2.Resolution No. 2021-XX - Establishing Water Rates and Charges
3.Resolution No. 2021-XX - Establishing Sewer Rates and Charges
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2021 Rate Study Report
Report / April 6, 2021
YORBA
LINDA
Water District
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445 S Figueroa St, Suite 1925
Los Angeles, CA 90071
www.raftelis.com
April 6, 2021
Mrs. Delia Lugo
Finance Manager
Yorba Linda Water District
1717 E Miraloma Ave
Placentia, CA 92870
Subject: Yorba Linda Water District 2021 Rate Study Report
Dear Mrs. Lugo:
Raftelis is pleased to provide this 2021 Rate Study Report (Study) to the Yorba Linda Water District (District) to
develop water and sewer rates in compliance with the requirements of Proposition 218 and District objectives. This
Report contains:
» The development of a long-term financial plan for the Water and Sewer Enterprise Funds to ensure
financial sufficiency for operating and capital obligations.
» A cost-of-service analysis and the development of five-year water and sewer rates that meet the Proposition
218 requirements and District objectives.
It has been a pleasure working with you, and we thank you and the District staff for the support provided during
this Study process.
Sincerely,
RAFTELIS
Sanjay Gaur
Vice President
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Table of Contents
1. EXECUTIVE SUMMARY ............................................................ 1
1.1. INTRODUCTION ..................................................................................... 1
1.2. RESERVE POLICY ................................................................................. 1
1.3. FINANCIAL PLANS ................................................................................ 2
1.4. PROPOSED 5-YEAR WATER AND SEWER RATES ............................ 4
1.5. PROPOSED WATER DROUGHT RATES .............................................. 6
1.6. CUSTOMER IMPACTS ........................................................................... 6
2. INTRODUCTION ........................................................................ 8
2.1. BACKGROUND ...................................................................................... 8
2.2. KEY INFORMATION USED IN THE STUDY .......................................... 8
2.3. FINANCIAL PLAN ASSUMPTIONS ....................................................... 9
3. LEGAL FRAMEWORK AND RATE SETTING
METHODOLOGY .................................................................................. 10
3.1. CALIFORNIA CONSTITUTION - ARTICLE XIII D, SECTION 6
(PROPOSITION 218) .......................................................................................... 10
3.1.1. California Constitution – Article X, Section 2 ........................................................ 10
3.2. COST-BASED RATE-SETTING METHODOLOGY .............................. 11
4. WATER FINANCIAL PLAN AND RATES ............................... 13
4.1. WATER FINANCIAL PLAN .................................................................. 13
4.1.1. Current Water Revenues .......................................................................................... 13
4.1.2. Water O&M Expenses .............................................................................................. 17
4.1.3. Water Capital Improvement Plan (CIP) ................................................................... 20
4.1.4. Water Debt Service ................................................................................................... 20
4.1.5. Status Quo Water Financial Plan ............................................................................ 20
4.1.6. Proposed Water Financial Plan ............................................................................... 23
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4.2. WATER COST OF SERVICE ANALYSIS ............................................. 25
4.2.1. Proportionality .......................................................................................................... 25
4.2.2. Water Cost of Service Analysis ............................................................................... 26
4.3. WATER RATE DESIGN ........................................................................ 40
4.3.1. Proposed Monthly Fixed Service Charge ............................................................... 40
4.3.2. Proposed Water Use Charges ................................................................................. 42
4.3.3. Five Year Water Rate Schedule ............................................................................... 43
4.4. WATER CUSTOMER IMPACT ANALYSIS .......................................... 45
4.5. WATER DROUGHT RATE DEVELOPMENT ........................................ 45
4.5.1. Water Shortage Stages and Purpose of Drought Rates........................................ 45
4.5.2. Financial Impacts of Drought .................................................................................. 46
4.5.3. Proposed 5-year Drought Rates .............................................................................. 47
5. SEWER FINANCIAL PLAN AND RATES ............................... 49
5.1. SEWER FINANCIAL PLAN .................................................................. 49
5.1.1. Current Sewer Revenues ......................................................................................... 49
5.1.2. Sewer O&M Expenses .............................................................................................. 50
5.1.3. Sewer CIP Funding ................................................................................................... 51
5.1.4. Sewer Debt Service .................................................................................................. 51
5.1.5. Status Quo Sewer Financial Plan ............................................................................ 51
5.1.6. Proposed Sewer Financial Plan .............................................................................. 53
5.2. SEWER COST OF SERVICE ANALYSIS ............................................. 56
5.2.1. determine Units of Service ...................................................................................... 56
5.2.2. Functionalize and Allocate O&M and Capital Costs .............................................. 56
5.2.3. Determine Revenue Requirement and Allocate Revenue Requirement to Cost
Components .............................................................................................................................. 59
5.2.4. Calculate Sewer Unit Cost of Service ..................................................................... 60
5.2.5. Calculate Sewer Cost by Customer Class .............................................................. 60
5.3. SEWER RATE DEVELOPMENT........................................................... 61
5.3.1. Proposed Rates ........................................................................................................ 61
5.4. SEWER CUSTOMER IMPACT ANALYSIS .......................................... 62
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List of Tables
Table 1-1: District's Reserve Policy .................................................................................................................. 2
Table 1-2: Proposed Annual Revenue Adjustments for Water, Sewer Funds ............................................. 2
Table 1-3: Proposed Five-Year Sewer Rates ................................................................................................... 4
Table 1-4: Proposed Five-Year Monthly Water Rates ..................................................................................... 5
Table 1-5: Proposed Water Drought Rates ...................................................................................................... 6
Table 1-6: Sewer Monthly incremental Customer Impact Analysis .............................................................. 7
Table 2-1: Inflationary Assumptions ................................................................................................................ 9
Table 4-1: Current Water Monthly Charges and Number of Water Meters ................................................ 14
Table 4-2: Current Private Fire Service Charges and Number of Private Firelines .................................. 14
Table 4-3: Current PFAS Fees and Number of Water Meters ...................................................................... 15
Table 4-4: Current Water Volumetric Charge and Projected Water Use .................................................... 15
Table 4-5: Revenues from Current Water Rates Summary .......................................................................... 16
Table 4-6: Projected Revenues for Water Fund (Without Revenue Adjustments) .................................... 16
Table 4-7 Projected Water Sales and Water Purchases by Source of Water Supply ............................... 17
Table 4-8: Projected Water Supply Costs ...................................................................................................... 18
Table 4-9: Projected Water O&M Expenses ................................................................................................... 19
Table 4-10: Status Quo Water Financial Plan ................................................................................................ 21
Table 4-11: Proposed Annual Water Revenue Adjustments ....................................................................... 23
Table 4-12: Proposed Water Financial Plan .................................................................................................. 25
Table 4-13: FY 2021 Revenue Requirement ................................................................................................... 27
Table 4-14: Water System Peaking Factors ................................................................................................... 28
Table 4-15: Allocation of Extra Capacity Functional Costs to Cost Causation Categories ..................... 29
Table 4-16: Water Usage Peaking ................................................................................................................... 29
Table 4-17: O&M and Capital Allocation to Cost Causation Components ................................................. 30
Table 4-18: Functionalized Water Capital Assets ......................................................................................... 30
Table 4-19: Percent Allocation of Salary Related Expenses to Cost Causation Components ................ 31
Table 4-20: Dollar Allocation of Salaries and Benefits to Cost Causation Components ......................... 31
Table 4-21: Allocation of O&M Costs to Cost Causation Components ...................................................... 32
Table 4-22: Asset Allocation to Cost Causation Components .................................................................... 32
Table 4-23: Allocation of Revenue Requirement to Cost Causation Components ................................... 34
Table 4-24: Summary Revenue Requirement Allocated to Cost Causation Components ....................... 35
Table 4-25: General Cost Reallocation ........................................................................................................... 35
Table 4-26: FY 2021 Allocated Revenue Requirements after General Cost Reallocation ........................ 36
Table 4-27: Public and Private Fire Demands ............................................................................................... 36
Table 4-28: Allocation of Peaking Costs to Fire Protection ......................................................................... 37
Table 4-29: Reallocated FY 2021 Revenue Requirements ........................................................................... 37
Table 4-30: Meter Ratios and Equivalent Meter Units .................................................................................. 38
Table 4-31: FY 2021 Unit Cost of Service Calculations ................................................................................ 39
Table 4-32: Development of Unit Monthly Fixed Service Charge ............................................................... 40
Table 4-33: FY 2021 Revised Monthly Fixed Service Charges before Proposed Revenue Adjustment . 40
Table 4-34: FY 2021 COS Monthly Fixed Service Charges .......................................................................... 41
Table 4-35: FY 2021 COS Capital Finance Charges ...................................................................................... 41
Table 4-36: Development of Private Fire Service Charges .......................................................................... 42
Table 4-37: FY 2021 Private Fire Charges before Proposed Revenue Adjustment .................................. 42
Table 4-38: Water Use Cost Component Descriptions ................................................................................. 43
Table 4-39: FY 2021 Revised COS Water Usage Rate .................................................................................. 43
Table 4-40: Revised FY 2021 Water Usage Rates (Before Revenue Adjustments) ................................... 43
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Table 4-41: Five-Year Proposed Water Rates ................................................................................................ 44
Table 4-42: FY 2022 Estimated Loss Revenues due to Reduced Water Sales by Stages ........................ 46
Table 4-43: FY 2022 Estimated Variable Water Supply Cost Savings Calculations ................................. 47
Table 4-44: FY 2022 Incremental Drought Rates on Water Usage Rates ................................................... 47
Table 4-45: Proposed 5-year Incremental Drought Rates ............................................................................ 48
Table 5-1: Current District Sewer Rates......................................................................................................... 49
Table 5-2: Projected Sewer Revenues from Current Rates ......................................................................... 50
Table 5-3: Projected Current Sewer Revenues ............................................................................................. 50
Table 5-4: Projected Sewer O&M Expenses .................................................................................................. 50
Table 5-5: Status Quo Sewer Financial Plan ................................................................................................. 52
Table 5-6: Proposed Sewer Revenue Adjustments ...................................................................................... 53
Table 5-7: Proposed Sewer Financial Plan .................................................................................................... 55
Table 5-8: Sewer Units of Service ................................................................................................................... 56
Table 5-9: Functionalization of O&M Costs ................................................................................................... 57
Table 5-10: Functionalization of Sewer Assets ............................................................................................. 57
Table 5-11: Allocations of Sewer Functions to Cost Components ............................................................. 58
Table 5-12: Allocations of Functionalized O&M Expenses to Cost Components ..................................... 58
Table 5-13: Allocations of Functionalized Sewer Assets to Cost Components ........................................ 58
Table 5-14: FY 2021 Sewer Revenue Requirement from Current District Rates ....................................... 59
Table 5-15: FY 2021 Revenue Requirement Allocation to Cost Components ........................................... 60
Table 5-16: Calculations of Sewer Unit Cost of Service .............................................................................. 60
Table 5-17: Allocation of Sewer Revenue Requirements to Customer Classes ....................................... 61
Table 5-18: Revised COS Single-Family Residential Rates for FY 2021 .................................................... 61
Table 5-19: Revised COS Master Metered Rate for FY 2021 ........................................................................ 61
Table 5-20: Proposed Commercial Sewer Rate for FY 2021 ........................................................................ 62
Table 5-21: 5-year Proposed Sewer Rates ..................................................................................................... 62
Table 5-22: Revised COS Sewer Customer Impacts .................................................................................... 62
Table 5-23: Impacts from Proposed Sewer Rates......................................................................................... 63
List of Figures
Figure 1-1: Water Financial Plan ....................................................................................................................... 3
Figure 1-2: Sewer Financial Plan ...................................................................................................................... 3
Figure 1-3: Typical Monthly Residential Customer Bill Impacts ................................................................... 6
Figure 4-1: Projected Annual Water CIP-Funding ......................................................................................... 20
Figure 4-2: Status Quo Water Financial Plan ................................................................................................ 23
Figure 4-3: Proposed Water Financial Plan ................................................................................................... 24
Figure 4-4: Cost of Service Process ............................................................................................................... 26
Figure 4-5: Typical Residential Customer Bill Impacts ................................................................................ 45
Figure 4-6: YLWD Water Conservation Stages ............................................................................................. 46
Figure 5-1: Projected Annual Sewer CIP Funding ....................................................................................... 51
Figure 5-2: Status Quo Sewer Financial Plan ................................................................................................ 53
Figure 5-3: Proposed Sewer Financial Plan .................................................................................................. 54
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Glossary
Terms Descriptions
AF Acre foot / Acre feet
AWWA American Water Works Association
BPP Basin Pumping Percentage
CCF Hundred cubic feet = 100 cubic feet = 748 gallons
COS Cost of Service
CIP Capital Improvement Plan
DU Dwelling unit
EMU Equivalent meter unit
FY Fiscal Year ending (July 1 – June 30)
G & A General and Administrative
GPCD Gallons per capita per day
GPM Gallons per minute
M1 Manual M1 Manual, Principles of Water Rates, Fees, and Charges, 7th edition published by
AWWA
MD Max day peaking factor
MFR Multi-family residential
MGD Million gallons per day
MH Max hour peaking factor
MWD Metropolitan Water District of Southern California
MWDOC Municipal Water District of Orange County
OCWD Orange County Water District
O&M Operations and maintenance
SFR Single-family residential
T & D Transmission and Distribution
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2021 RATE STUDY REPO RT 1
1. Executive Summary
1.1. Introduction
In September 2020, the Yorba Linda Water District (District) engaged Raftelis to conduct a water and sewer rate
study and provide this written 2021 Rate Study Report (Report), which included the preparation of a long-term
financial plan. The District pursued a rate study to establish financially sound utilities planning and to set rates and
charges that are based on the costs to serve each customer.
The District provides water service to over 24,000 residential and commercial accounts located in the City of
Yorba Linda and portions of Brea, Anaheim, and Placentia. The District’s existing water rate structure consists of
a monthly base fee, which increases with meter size, and a uniform water usage charge based on the units of water
usage within a billing period. The existing sewer rate structure consists of a monthly base fee based on customer
class rather than meter size. In addition, Commercial accounts will have a sewer usage rate above 7 ccf each
month.
The major objectives of the Study include:
Developing a long-term financial plan for the water and sewer utilities to ensure financial sufficiency for
the operating requirements and capital obligations of each utility
Conducting cost-of-service analyses and designing water and sewer rates
Developing a five-year rate schedule
Analyzing customer impacts of the proposed rates
Developing drought rates to offset financial loss during drought conditions
Producing an administrative record that demonstrates the nexus between the District’s costs of service and
proposed rates to meet the requirements of Proposition 218 and District objectives.
This Report describes the long-term financial plans, rates, and customer impact analyses. For purposes of the
analysis set out in this Report, the terms “rate(s)” and “charge(s)” may be used interchangeably. Note that the Rate
Study (Study) led to the Rate Study Report (Report).
1.2. Reserve Policy
A reserve policy provides guidelines for sound financial management to maintain financial solvency and mitigate
financial risks associated with revenue instability, volatile capital costs, and emergencies. Adopting and adhering to
a sustainable reserve policy enhances financial transparency and helps achieve or maintain a certain credit rating
for future debt issues. Reserves can offset fluctuations in costs of providing services and mitigate fiscal emergencies
such as natural disasters, asset failures, pandemics, and provide stability in the case of legislative and regulatory
changes. Capital reserves set funds aside for replacement of capital assets and to fund new capital projects.
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Table 1-1 provides the District’s current reserve policy. The reserve policy affects revenue needs as this Report
seeks to achieve minimum reserve targets.
Table 1-1: District's Reserve Policy
Reserve Targets Description Water Water FY 2021 Sewer Sewer FY 2021
Operations O&M Expenses 90 days $7.923M 90 days $763K
Capital Current FY CIP 100% $3.443M 100% $737K
Rate
Stabilization Water Sales (WS) 5% $1.033M
Emergency Capital Assets 5% $11.486M 5% $3,006K
Conservation $104,911 $0.105M
Employee
Liability $260,554 $0.261M $45,980 $46K
MWD
Contingency
Assumed 100%
WS from MWD 100% $20.05M
FY 2021 Targets $44.308M $4.552M
1.3. Financial Plans
One of the Study’s major objectives is to develop a long-term financial plan ensuring financial sufficiency for each
utility. Raftelis developed a long-term financial plan model incorporating the known and forecasted cost increases
for operating and capital expenditures. The results were presented to and discussed with the District’s Board of
Directors. The proposed five-year revenue adjustments are shown in Table 1-2. Revenue adjustments represent
increases to the annual gross rate revenues of each utility.
Table 1-2: Proposed Annual Revenue Adjustments for Water, Sewer Funds
Fiscal Year Ending Effective Month Water Sewer New Water Debt
2022 July 9% 15%
2023 July 9% 15% $15M
2024 July 9% 15%
2025 July 9% 15%
2026 July 9% 3.5%
All proposed financial plans (water and sewer) are summarized in the figures below. Figure 1-1 shows the
overview of the proposed water financial plan with four charts. The first chart (top left) shows the proposed
revenue adjustments and the debt coverage for the Water Fund as proposed in Table 1-2. The second chart (top
right) shows the financial plan in which the red line represents the current revenues, the green line represents the
proposed revenues, and the stacked bars represent the operating and capital expenses, including debt service. The
capital plan chart (bottom left) includes a new debt issue in Fiscal Year (FY) 2023 to finance several of the planned
Capital Improvement Projects (CIP) into FY 2025. The last chart (bottom right) shows the projected Water Fund
ending balances for the study period with the proposed revenue adjustments. Similarly, Figure 1-2 shows the
financial plan for the Sewer Fund.
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Figure 1-1: Water Financial Plan
Figure 1-2: Sewer Financial Plan
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4 YORBA LINDA WATER DI STRICT
1.4. Proposed 5-Year Water and Sewer Rates
Raftelis performed a cost-of-service analysis using revenue requirements for FY 2021 (known as the test year) to
calculate fair and equitable rates where users pay rates that are proportional to their cost of service. The calculated
rates are then increased by the proposed revenue adjustments to determine the proposed rates from FY 2022
through FY 2026. Detailed cost-of-service analyses are included in Sections 4.2 and 5.2 of the Report. Table 1-3
and Table 1-4 summarize the proposed rates for the next five years for water and sewer services. Note that the
calculated numbers are rounded up to the nearest whole penny.
Table 1-3: Proposed Five-Year Sewer Rates
Monthly Sewer Service
Charge Current FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Effective Date Jul 1, 2021 Jul 1, 2022 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025
Residential $8.10 $9.55 $10.99 $12.64 $14.54 $15.05
Master Metered $7.62 $9.19 $10.57 $12.16 $13.99 $14.48
Commercial $8.10 $9.55 $10.99 $12.64 $14.54 $15.05
Sewer Usage Rates (for commercial accts only)
Tier 1 (0-7 ccf) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Tier 2 (8+ ccf) $0.52 $0.37 $0.43 $0.50 $0.58 $0.61
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Table 1-4: Proposed Five-Year Monthly Water Rates
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Current Jul 1, 2021 Jul 1, 2022 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025
Monthly Service Charges (by Meter Size)
5/8 $22.26 $27.65 $30.14 $32.86 $35.82 $39.05
3/4 $22.26 $27.65 $30.14 $32.86 $35.82 $39.05
1 $37.18 $43.13 $47.02 $51.26 $55.88 $60.91
1 1/2 $74.14 $81.80 $89.17 $97.20 $105.95 $115.49
2 $118.67 $128.21 $139.75 $152.33 $166.04 $180.99
3 $259.84 $275.19 $299.96 $326.96 $356.39 $388.47
4 $467.59 $491.77 $536.03 $584.28 $636.87 $694.19
6 $1,039.15 $1,242.10 $1,353.89 $1,475.75 $1,608.57 $1,753.35
Capital Finance Charges (by Meter Size) assessed on the Property Roll1
5/8 $5.67 $6.19 $6.75 $7.36 $8.03
3/4 $5.67 $6.19 $6.75 $7.36 $8.03
1 $9.46 $10.32 $11.25 $12.27 $13.38
1 1/2 $18.91 $20.62 $22.48 $24.51 $26.72
2 $30.24 $32.97 $35.94 $39.18 $42.71
3 $66.14 $72.10 $78.59 $85.67 $93.39
4 $119.03 $129.75 $141.43 $154.16 $168.04
6 $302.31 $329.52 $359.18 $391.51 $426.75
Private Fire (by Fireline Diameter)
4 $16.00 $7.85 $8.56 $9.34 $10.19 $11.11
6 $35.00 $20.57 $22.43 $24.45 $26.66 $29.06
8 $59.00 $42.54 $46.37 $50.55 $55.10 $60.06
10 $94.00 $75.56 $82.37 $89.79 $97.88 $106.69
PFAS Impact Fee2 (by Meter Size)
5/8 $3.40 $3.40
3/4 $3.40 $3.40
1 $5.66 $5.66
1 1/2 $11.32 $11.32
2 $18.12 $18.12
3 $39.66 $39.66
4 $71.40 $71.40
6 $181.32 $181.32
Water
Usage Rate
($/ccf)
$2.86 $2.64 $2.88 $3.14 $3.43 $3.74
1 Capital Finance Charges are assessed on the property roll on an annual basis. The charges shown in Table 1-4 are
monthly. For example, in FY 2022, a 5/8” meter will be assessed at $68.04 ($5.67 x 12 months).
2 The PFAS Impact Fee will be temporarily in place from February 2021 – December 2021.
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1.5. Proposed Water Drought Rates
California has faced a water shortage in the past and may at some point soon declare a drought state of emergency
once again. In the case that drought stages become active, updated rates have been proposed to address the
reductions to the water supply, mandatory demand reductions, and to address potential revenue shortfalls that may
occur. The proposed drought rates at various stages are shown in Table 1-5. The incremental drought rates in the
table offset the revenue loss (net of water cost savings) from an overall reduction in water sales. The details of the
drought rate calculations are shown in section 4.5.
Table 1-5: Proposed Water Drought Rates
Drought Stages Stage
Description
Sales /
Demand
Reduction
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Water Usage
Rates $2.64 /ccf $2.88 /ccf $3.14 /ccf $3.43 /ccf $3.74 /ccf
% Increase 9% 9% 9% 9%
No Drought No Shortage 0% $0.00 /ccf $0.00 /ccf $0.00 /ccf $0.00 /ccf $0.00 /ccf
1 Minimum
Shortage
10% $0.12 /ccf $0.14 /ccf $0.16 /ccf $0.18 /ccf $0.20 /ccf
2 Moderate
Shortage
20% $0.26 /ccf $0.29 /ccf $0.32 /ccf $0.35 /ccf $0.39 /ccf
3 Severe Shortage 35% $0.55 /ccf $0.60 /ccf $0.66 /ccf $0.73 /ccf $0.80 /ccf
4 Critical Shortage 50% $1.01 /ccf $1.11 /ccf $1.22 /ccf $1.34 /ccf $1.47 /ccf
1.6. Customer Impacts
Figure 1-3 shows bill impacts for the typical Single-family residential (SFR) home with a 1-inch meter under the
proposed water and sewer rates. Note that the Capital Finance Charge is not reflected in the below impact as it will
be assessed on the property roll.
Figure 1-3: Typical Monthly Residential Customer Bill Impacts
Table 1-6 shows average sewer customer bill impacts by class.
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Table 1-6: Sewer Monthly incremental Customer Impact Analysis
Monthly Rate Impacts Jul 1, 2021 Jul 1, 2022 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025
Residential $1.45 $1.44 $1.65 $1.90 $0.51
Master Metered $1.57 $1.38 $1.59 $1.83 $0.49
Commercial $1.45 $1.44 $1.65 $1.90 $0.51
The rates calculated in this study for water and sewer services follow industry standard principles of equitable cost-
of-service allocations compliant with Proposition 218. The remainder of this Report details financial plan
development, cost-of-service analyses, and rate calculations for the District’s water and sewer services.
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2. Introduction
2.1. Background
In September 2020, the Yorba Linda Water District (District) engaged Raftelis to conduct a water and sewer rate
study and provide a written 2021 Rate Report (Report), which includes the preparation of a long-term financial
plan. The District pursued a rate study to help establish financially sound utility planning and to set rates and
charges that are based on the costs to serve each customer.
The District provides water service to over 24,000 residential and co mmercial accounts located in the City of
Yorba Linda and portions of the Cities of Brea, Anaheim, and Placentia. The District’s existing water rate structure
consists of a monthly base fee, which increases with meter size, and a uniform water usage charge based on the
units of water usage within a billing period.
The District currently utilizes two sources of water supply: groundwater from Orange County Water District
(OCWD) and imported water from Municipal Water District of Orange County (MWDOC ). The District
provides sewer collection service to over 25,000 accounts. The District currently has two sets of monthly base fees
and volumetric rates for its Commercial customers.
The major objectives of the Study include:
Developing a long-term financial plan for the water and sewer utilities to ensure financial sufficiency for
the operating requirements and capital obligations of each utility
Conducting cost-of-service analyses and designing water and sewer rates
Developing a five-year rate schedule
Analyzing customer impacts of the proposed rates
Developing Drought Rates to offset financial loss during drought conditions
Producing an administrative record that demonstrates the nexus between the District’s costs of service and
proposed rates to meet the requirements of Proposition 218 and District objectives.
This Report describes the long-term financial plans, rates, and customer impact analyses. For purposes of the
analysis set out in this Report, the terms “rate(s)” and “charge(s)” may be used interchangeably. Note that the Rate
Study (Study) led to the Rate Study Report (Report).
2.2. Key Information Used in the Study
The study uses the following key information provided by the District:
1. FY 2021 operating budgets for the Water and Sewer Funds in October 2020, with mid-year adjustments
provided in January 2021
2. Estimated CIP expenditures for the next 10 years, as provided by District staff in January 2021
3. Current debt service obligations provided by District staff in October 2020
4. Beginning Fund balances as of July 1, 2020 (FY 2021) provided by District staff in October 2020
5. Water Conservation Ordinance provided by District Staff in February 2021 detailing the water
conservation stages3
3 https://www.ylwd.com/community/conservation-ordinance
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2021 RATE STUDY REPO RT 9
2.3. Financial Plan Assumptions
Raftelis worked closely with District staff to forecast revenues and expenses as part of developing the financial
plan. Table 2-1 lists the annual inflation factors for each of the District’s cost categories. Personnel costs include
salary, health benefits, and life insurance. Chemicals and utilities are listed separately due to their unique escalation
factors. Water supply costs are listed separately as well. Escalation factors are based on long-term inflationary
indices, discussions with District staff, and professional judgment.
Table 2-1: Inflationary Assumptions
Escalation Factors Annual
FY 2022 – FY 2028
General 2.0%
Personnel 8.0%
Chemicals 2.0%
Utilities 5.0%
Reserve Interest Rate 1.0%
Capital 3.0%
Water loss 8.0%
OCWD Water Cost 2.0%
MWD/MWDOC Fixed Cost 3.0%
MWDOC Variable Cost 5.0%
Normal Basin Pumping
Percentage (BPP) 75%
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10 YORBA LINDA WATER DI STRICT
3. Legal Framework and Rate
Setting Methodology
3.1. California Constitution - Article XIII D, Section 6
(Proposition 218)
Proposition 218, the applicable portion of which is set out in the California Constitution as Article XIII D,
was enacted in 1996 to ensure that public agency utility service rates, fees, and charges are reasonable and
proportional to the cost of providing the applicable service(s). The principal requirements for application of
such rates, fees, and charges, as they relate to public water and wastewater services, are as follows:
1. A property-related rate/fee/charge (such as water and recycled water rates) imposed by a public
agency on a parcel shall not exceed the costs required to provide the property-related service.
2. Revenues derived by the rate/fee/charge shall not be used for any purpose other than that for which
it was imposed.
3. The amount of the rate/fee/charge imposed upon any parcel shall not exceed the proportional cost
of service attributable to the parcel.
4. No rate/fee/charge may be imposed for a service unless that service is actually used or immediately
available to the owner of property.
5. No rate/fee/charge may be imposed for general governmental services including, but not limited to,
police, fire, ambulance, or library services, where the service is available to the public at large in
substantially the same manner as it is to property owners.
6. A written notice of the proposed charge shall be mailed to the record owner of each parcel at least 45
days prior to the public hearing, when the agency considers all written protests against the charge.
As stated in the American Water Works Association’s (AWWA) M1 Manual, Principles of Water Rates, Fees,
and Charges, 7th edition (M1 Manual), “water rates and charges should be recovered from classes of customers
in proportion to the cost of serving those customers.” Proposition 218 requires that water rates/fees/charges
cannot be “arbitrary and capricious,” meaning that the rate-setting methodology must be sound and that
there must be a nexus between the costs and the rates charged. This Report follows industry standard rate-
setting methodologies set forth by the M1 Manual, adhering to Proposition 218 requirements by developing
rates that do not exceed the proportionate cost of providing the corresponding services.
3.1.1. CALIFORNIA CONSTITUTION – ARTICLE X, SECTION 2
Article X, Section 2 of the California Constitution states the following:
“It is hereby declared that because of the conditions prevailing in this State the general welfare requires that the
water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the
waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of such
waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for
the public welfare.”
Article X, Section 2 of the State Constitution establishes the need to preserve the State’s water supplies and to
discourage the waste or unreasonable use of water by encouraging conservation. By definition, public agencies
are constitutionally mandated to maximize the beneficial use of water, prevent waste, and encourage
conservation.
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2021 RATE STUDY REPO RT 11
In addition, Section 106 of the California Water Code declares that the highest priority use of water is for
domestic purposes, with irrigation water secondary.
3.2. Cost-Based Rate-Setting Methodology
As stated in the M1 Manual, “the costs of water rates and charges should be recovered from classes of
customers in proportion to the cost of serving those customers.” To develop utility service rates that comply
with the requirements of Proposition 218 and industry standards while meeting other goals and objectives of
the service provider, Raftelis carries out a detailed analysis in four major steps, as discussed below.
Step 1: Calculate Revenue Requirement
The rate-making process starts by determining the test year (rate-setting year) revenue requirement, which for
this Study is FY 2021. The revenue requirement should sufficiently fund the utility’s operations and
maintenance (O&M), debt service, capital expenses, and target reserve balances based on a long-term
financial plan.
Step 2: Cost-of-Service Analysis
The annual cost of providing water service is distributed among customer classes commensurate with their
service requirements. A cost-of-service analysis involves the following tasks:
1. Functionalize costs. Examples of water system functions are supply, treatment, transmission,
distribution, storage, meter servicing, and customer billing and collection.
2. Allocate functionalized costs to cost causation components. Water system cost causation
components include base, maximum day, maximum hour4, conservation, public fire protection,
meter service, and customer servicing and billing costs.
3. Distribute cost causation components, using unit costs, to rate components and customers in
proportion to their demands on the water system capacity. For water utilities, this is described in
AWWA’s M1 Manual.
A cost-of-service analysis considers both the average quantity of water consumed (base costs) and the peak
rate at which it is consumed (peaking costs or capacity costs as identified by maximum day and maximum
hour demands).5 Peaking costs are costs that are incurred during peak times of consumption. There are
additional costs associated with designing, constructing, operating, and maintaining facilities to meet peak
demands. These peak demand costs need to be allocated to those imposing such costs on the utility. In other
words, not all customer classes share the same responsibility for extra-capacity related costs.
Step 3: Rate Design and Calculations
4 Maximum day and maximum hour costs are collectively referred to as “peaking costs” or “extra-capacity costs”.
5 System capacity is the system’s ability to supply water to all delivery points at the time when demanded.
Coincident peaking factors are calculated for each customer class at the time of greatest system demand. The time
of greatest demand is known as peak demand. Both the operating costs and capital asset related costs incurred to
accommodate the peak flows are generally allocated to each customer class based upon the class’ relative demands
during the peak month, day, and hour event.
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12 YORBA LINDA WATER DI STRICT
Rates do more than simply recover costs. Within the legal framework and industry standards, properly
designed rates should support and optimize a blend of various utility objectives, such as affordability for
essential needs and revenue stability among other objectives.
Step 4: Rate Adoption
Rate adoption is the last step of the rate-making process to comply with Proposition 218. Raftelis documents
the rate study results in this Report to serve as the District’s administrative record and a public education tool
concerning the proposed changes, the rationale and justifications behind the changes, and their anticipated
financial impacts.
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2021 RATE STUDY REPO RT 13
4. Water Financial Plan and
Rates
The financial plan assesses the long-term financial health of the Water Fund based on projected revenues, O&M
expenses, CIP funding, and debt service payments. The primary results of the financial plan include a cashflow
summary and the rate revenue requirement, the latter being the key factor driving rat e development. The long-term
financial plan horizon spans FY 2021 through FY 2028.
4.1. Water Financial Plan
4.1.1. CURRENT WATER REVENUES
Table 4-1 through Table 4-5 show the existing water rates and structure. The charges for potable water service
include:
Water Monthly Service Charge: Meter size-based fixed charge effective as of August 1, 2020, shown in
Table 4-1
Private Fire Service Charge: Fireline diameter-based fixed charge, effective prior to July 2018, shown
Table 4-2.
PFAS Impact Fee: Meter size-based fixed charge, effective February 2021 through Dec 2021, shown in
Table 4-3
The PFAS fee projected revenues in Table 4-3 are calculated for FY 2021 and FY 2022 for each meter size
then summed to arrive at the projected annual revenues. An example for the 5/8-inch meter is as follows:
𝐹𝑙𝑟 𝐹𝑌 2021: $3.40 × 26 Meters × 5 𝑙𝑙𝑙𝑟�𝑟=$442
𝐹𝑙𝑟 𝐹𝑌 2022: $3.40 × 26 Meters × 6 𝑙𝑙𝑙𝑟�𝑟=$530
Table 4-3 The PFAS fee is to recover a portion of the financial impacts due to lower OCWD BPP during
the construction of facilities to address the new PFAS requirements. Lower OCWD BPP results in
increased purchase from MWDOC and overall higher water supply costs.
Water Usage Rate: Use-based rate assessed as dollars per hundred cubic feet (ccf) effective February 2021,
shown in Table 4-4.
Table 4-1 lists the monthly charge by meter size and the projected number of accounts corresponding to each meter
size across the study period. The projected revenues from the monthly charges are calculated by multiplying the
current meter charge by the corresponding number of accounts and then multiplying by 12 billing periods. An
example for 5/8-inch meters is as follows:
$22.26 × 26 × 11 𝑙𝑙𝑙𝑟�𝑟+$21.20 × 26 × 1 𝑙𝑙𝑙𝑟� =$6,387
Note: since the current charges were effective one month into the fiscal year one bill period at the previous charge
was included. This calculation is performed for each meter size and then summed to arrive at the projected annual
fixed revenue for each fiscal year in Table 4-1.
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14 YORBA LINDA WATER DI STRICT
Table 4-1: Current Water Monthly Charges and Number of Water Meters
Meter
Size
Prior
Rates
Current
Rates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 –
FY 2028
5/8 $21.20 $22.26 26 26 26 26 26 26
3/4 $21.20 $22.26 5,602 5,602 5,602 5,602 5,602 5,602
1 $35.41 $37.18 18,049 18,076 18,104 18,124 18,144 18,160
1 1/2 $70.61 $74.14 602 603 603 603 603 603
2 $113.02 $118.67 1,108 1,113 1,113 1,113 1,113 1,113
3 $247.47 $259.84 7 8 8 8 8 8
4 $445.32 $467.59 3 3 3 3 3 3
6 $989.67 $1,039.15 1 1 1 1 1 1
Projected
Revenues $11,674,146 $11,743,821 $11,756,313 $11,765,236 $11,774,160 $11,781,298
The projected current private fire service revenues in Table 4-2 are calculated for each fireline size then summed to
arrive at projected annual revenues. An example for the 2-inch private fire service is as follows:
𝐹𝑙𝑟 𝐹𝑌 2021: $16.00 × 114 × 12 𝑙𝑙𝑙𝑟�𝑟=$21,888
Table 4-2: Current Private Fire Service Charges and Number of Private Firelines
Meter
Size
Current
Rates FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
FY 2026
– FY
2028
2 $16.00 114 114 114 114 114 114
3 $35.00 137 137 137 137 137 137
4 $59.00 95 95 95 95 95 95
6 $94.00 5 5 5 5 5 5
Projected
Revenues
$152,328 $152,328 $152,328 $152,328 $152,328 $152,328
The PFAS fee projected revenues in Table 4-3 are calculated for FY 2021 and FY 2022 for each meter size then
summed to arrive at the projected annual revenues. An example for the 5/8-inch meter is as follows:
𝐹𝑙𝑟 𝐹𝑌 2021: $3.40 × 26 × 5 𝑙𝑙𝑙𝑟�𝑟=$442
𝐹𝑙𝑟 𝐹𝑌 2022: $3.40 × 26 × 6 𝑙𝑙𝑙𝑟�𝑟=$530
Note: the EMUs vary slightly between FY 2021 and FY 2022. Therefore, the EMUs for FY 2021 were multiplied
for the 5 month period from February through June and the EMUs for FY 2022 were multiplied for the remaining
6 months to arrive at the totals shown in Table 4-3.
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2021 RATE STUDY REPO RT 15
Table 4-3: Current PFAS Fees and Number of Water Meters
Meter Size PFAS Fees FY 2021 FY 2022
5 months
(Feb – June)
6 months
(Jul – Dec)
5/8 $3.40 26 26
3/4 $3.40 5,602 5,602
1 $5.66 18,049 18,076
1 1/2 $11.32 602 603
2 $18.12 1,108 1,113
3 $39.66 7 8
4 $71.40 3 3
6 $181.32 1 1
Projected Revenues $745,275 $896,098
The volumetric rates and projected water use are shown for each customer class in Table 4-4. The volumetric
charge for each class is calculated by multiplying the respective volumetric rate by annual use. Water usage
revenue for FY 2021 and FY 2022 is calculated as follows:
𝐹𝑌 2021:($2.80 𝑥 71%+$2.80 𝑥 29%)× 7,380,219 =$20,792,042
𝐹𝑌 2022: $2.86 × 7,380,219 =$21,107,426
Table 4-4: Current Water Volumetric Charge and Projected Water Use
Water Rates Prior Rate Current Rates FY 2021 FY 2022 -
FY 2028
Effective Date 7/1/2019 2/1/2021
Single-family Residential $2.80 $2.86 5,565,510 5,565,510
Irrigation $2.80 $2.86 517,779 517,779
Commercial $2.80 $2.86 1,291,334 1,291,334
Construction $2.80 $2.86 5,596 5,596
Total Usage (ccf) $2.80 $2.86 7,380,219 7,380,219
Projected Current Water
Usage Revenues $20,792,042 $21,107,426
Note: 71% of water demand is expected to occur during the period from July to the end of January, while 29% of
demand occurs in the final 5 months. from Table 4-5 provides an annual summary of the monthly fixed charges
for water service, monthly private firelines and volumetric water charges. The amounts in the summary are
calculated in Table 4-1, Table 4-2, and Table 4-4.
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16 YORBA LINDA WATER DI STRICT
Table 4-5: Revenues from Current Water Rates Summary
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 –
FY 2028
Monthly Service Charges $11,674,146 $11,743,821 $11,756,313 $11,765,236 $11,774,160 $11,781,298
Private Fire $152,328 $152,328 $152,328 $152,328 $152,328 $152,328
Water Usage Charge $20,792,042 $21,107,426 $21,107,426 $21,107,426 $21,107,426 $21,107,426
Total Current Water Rev from
Rates, excl. PFAS Fees $32,618,516 $33,003,575 $33,016,068 $33,024,991 $33,033,914 $33,041,053
Table 4-6 summarizes revenues from current water rates across the study period, with projected revenue for each charge type corresponding to those in
Table 4-4 and Table 4-5. Table 4-6 projects total District revenues across the study period assuming zero revenue adjustments (no increase to gross rate
revenues). The total existing rate revenue is presented on Line 3 of Table 4-6.
Table 4-6: Projected Revenues for Water Fund (Without Revenue Adjustments)
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 REVENUES
2 OPERATING REVENUES
3 Revenues from Current Rates $32,618,516 $33,003,575 $33,016,068 $33,024,991 $33,033,914 $33,041,053 $33,041,053 $33,041,053
4 Proposed Rev Adjustments $0 $0 $0 $0 $0 $0 $0 $0
5 PFAS Impact Fee $745,002 $895,771 $0 $0 $0 $0 $0 $0
6 Other Operating Rev $824,650 $832,897 $841,225 $849,638 $858,134 $866,715 $875,383 $884,136
7 SUBTOTAL OPERATING
REVENUES
$34,188,168 $34,732,242 $33,857,293 $33,874,628 $33,892,048 $33,907,768 $33,916,435 $33,925,189
8 NON-OPERATING
REVENUES
9 Property Tax $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000
10 Investment Income $175,000 $244,468 $162,946 $95,464 $363 -$117,433 -$262,301 -$429,139
11 Other Non-Operating
Revenue $601,646 $607,662 $613,739 $619,876 $626,075 $632,336 $638,659 $645,046
12 SUBTOTAL NON-
OPERATING REVENUES $2,726,646 $2,802,131 $2,726,685 $2,665,341 $2,576,438 $2,464,903 $2,326,359 $2,165,907
13 TOTAL REVENUES $36,914,814 $37,534,373 $36,583,978 $36,539,969 $36,468,487 $36,372,671 $36,242,794 $36,091,096
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4.1.2. WATER O&M EXPENSES
4.1.2.1. Purchased Water Supply Costs
Table 4-7 and Table 4-8 show the expected purchase quantities and unit price of water by source and projected water purchase expenses. The quantity
purchased from each water source is calculated using projected water sales, estimated system water loss, and projected basin pumping percentage
(estimated for water to be pumped from OCWD basins).
Table 4-7 Projected Water Sales and Water Purchases by Source of Water Supply
Unit FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Water Sales ccf 7,380,219 7,380,219 7,380,219 7,380,219 7,380,219 7,380,219 7,380,219 7,380,219
AF 16,943 16,943 16,943 16,943 16,943 16,943 16,943 16,943
Water loss 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
Water Purchases AF 18,416 18,416 18,416 18,416 18,416 18,416 18,416 18,416
Projected OCWD
BPP
48.70% 49.10% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00%
Quantity Purchased AF
OCWD BPP 8,969 9,042 13,812 13,812 13,812 13,812 13,812 13,812
MWDOC 9,447 9,374 4,604 4,604 4,604 4,604 4,604 4,604
Jul - Dec 58.62% 5,538 5,494 2,699 2,699 2,699 2,699 2,699 2,699
Jan - Jun 41.38% 3,910 3,879 1,905 1,905 1,905 1,905 1,905 1,905
Table 4-8 shows variable and fixed water supply costs by source. Variable rates are assessed in dollars per acre foot while fixed charges are flat monthly
or annual charges. Additionally, Municipal Water District of Orange County (MWDOC) rates change on a calendar-year basis whereas the District
operates on a fiscal-year basis. Thus, the MWDOC charges are identified as January through June of the current calendar year and July through
December of the previous calendar year. The variable unit costs are multiplied by the projected quantity purchased from each source to calculate the
variable water supply costs from each.
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18 YORBA LINDA WATER DI STRICT
Table 4-8: Projected Water Supply Costs
Water Supply Costs FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Variable Unit Costs
OCWD RA $ / AF $487.00 $496.74 $506.67 $516.81 $527.14 $537.69 $548.44 $559.41
MWD Tier 1 Treated
Jul - Dec $ / AF $1,078.00 $1,104.00 $1,159.20 $1,217.16 $1,278.02 $1,341.92 $1,409.01 $1,479.47
Jan - Jun $ / AF $1,104.00 $1,159.20 $1,217.16 $1,278.02 $1,341.92 $1,409.01 $1,479.47 $1,553.44
Variable Water
Supply Costs
OCWD RA $4,367,687 $4,491,632 $6,998,164 $7,138,127 $7,280,890 $7,426,508 $7,575,038 $7,726,539
MWD Tier 1 Treated $10,285,918 $10,562,707 $5,447,368 $5,719,737 $6,005,724 $6,306,010 $6,621,310 $6,952,376
Subtotal Water
Variable Costs $14,653,605 $15,054,339 $12,445,532 $12,857,864 $13,286,614 $13,732,518 $14,196,348 $14,678,914
Fixed Costs
OCWD Annex $521,476 $531,906 $542,544 $553,395 $564,462 $575,752 $587,267 $599,012
Connection Fee $308,660 $317,920 $327,457 $337,281 $347,400 $357,822 $368,556 $379,613
Capacity Fee $213,777 $220,190 $226,796 $233,600 $240,608 $247,826 $255,261 $262,919
Readiness-to-Serve $285,375 $293,936 $302,754 $311,837 $321,192 $330,828 $340,753 $350,975
Subtotal Water
Fixed Costs $1,329,288 $1,363,952 $1,399,551 $1,436,112 $1,473,662 $1,512,227 $1,551,836 $1,592,519
Projected Water
Supply Costs $15,982,893 $16,418,291 $13,845,084 $14,293,977 $14,760,275 $15,244,745 $15,748,185 $16,271,433
4.1.2.2. Water O&M Expenses
Table 4-9 restates the water supply costs (from Table 4-8) and the budgeted and projected O&M expenses using the inflation factors assumed in
Table 2-1. PFAS O&M and UAL Funding OPEB lines are provided by District staff based on their current estimates of future financial obligations with
respect to these costs.
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Table 4-9: Projected Water O&M Expenses
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Power $1,222,191 $1,283,301 $1,347,466 $1,414,839 $1,485,581 $1,559,860 $1,637,853 $1,719,745
Water Supply Fixed Costs $1,329,288 $1,363,952 $1,399,551 $1,436,112 $1,473,662 $1,512,227 $1,551,836 $1,592,519
Water Supply Variable Costs $14,653,605 $15,054,339 $12,445,532 $12,857,864 $13,286,614 $13,732,518 $14,196,348 $14,678,914
Salary Related Expenses $10,156,647 $10,969,179 $11,846,713 $12,794,450 $13,818,006 $14,923,447 $16,117,322 $17,406,708
UAL Funding OPEB /
Pension $0 $924,226 $924,226 $924,226 $924,226 $924,226 $924,226 $924,226
Supplies and Services $4,651,466 $4,959,410 $4,713,760 $4,813,454 $4,915,413 $5,019,695 $5,126,362 $5,235,476
PFAS O&M $0 $0 $819,467 $1,245,591 $1,270,503 $1,295,913 $1,321,831 $1,348,268
Other Non-Operating
Expenses $117,994 $120,354 $122,761 $125,216 $127,721 $130,275 $132,880 $135,538
Total Water O&M Expenses $32,131,191 $34,674,760 $33,619,476 $35,611,753 $37,301,725 $39,098,161 $41,008,660 $43,041,395
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4.1.3. WATER CAPITAL IMPROVEMENT PLAN (CIP)
The annual Water CIP, shown in Figure 4-1, was provided by District staff in January 2021 and is utilized as part
of the financial plan. A 3% capital escalation factor is used to project future costs inclusive of construction cost
inflation. A combination of cash funding (Pay As You Go or PAYGO (green bars)) and new debt financing (purple
bars) is required to implement the projected Water CIP.
Figure 4-1: Projected Annual Water CIP-Funding
4.1.4. WATER DEBT SERVICE
4.1.4.1. Current Debt Service
The Water Fund currently has two outstanding debts: 2012A series and 2017A series. Annual payments are
approximately $2.7M per year, which includes principal and interest.
4.1.4.2. Proposed Debt Service for Water CIP
The District plans to finance its water CIP with one new debt issue of approximately $15M in December 2022
(FY 2023). The projected annual debt service payment for the new debt is estimated at approximately $765,289 per
year, assuming a 30-year term, 3% interest rate, and 2% issuance cost.
4.1.5. STATUS QUO WATER FINANCIAL PLAN
Table 4-10 summarizes the status quo financial plan with no revenue increases or new debt issuance. The cash
flow incorporates the revenues from current rates and non-rate revenues (Table 4-6), water supply costs (Table
4-8), O&M expenses (Table 4-9), capital improvement projects (Table 4-1), and annual debt service payments to
project the debt coverage ratio and projected ending balances. All projections shown in the table are based upon the
District’s current rate structure and do not include revenue adjustments. Under the “status-quo” financial plan
scenario, the District would generate negative cashflow every year of the study period. Beginning in FY 2021,
revenues generated from rates and other miscellaneous revenues will be inadequate to sufficiently recover operating
expenses, capital expenditures, and debt obligations as well as to maintain adequate reserves. The District’s
coverage ratio will fall below the minimum of 1.25 (per debt covenant requirements) in FY 2022.
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2021 RATE STUDY REPO RT 21
Table 4-10: Status Quo Water Financial Plan
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 REVENUES
2 OPERATING REVENUES
3 Revenues from Current Rates $32,618,516 $33,003,575 $33,016,068 $33,024,991 $33,033,914 $33,041,053 $33,041,053 $33,041,053
4 Proposed Rev Adjustments $0 $0 $0 $0 $0 $0 $0 $0
5 PFAS Impact Fee $745,002 $895,771 $0 $0 $0 $0 $0 $0
6 Other Operating Rev $824,650 $832,897 $841,225 $849,638 $858,134 $866,715 $875,383 $884,136
7 SUBTOTAL OPERATING REVENUES $34,188,168 $34,732,242 $33,857,293 $33,874,628 $33,892,048 $33,907,768 $33,916,435 $33,925,189
8 NON-OPERATING REVENUES
9 Property Tax $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000
10 Investment Income $175,000 $244,468 $162,946 $95,464 $363 -$117,433 -$262,301 -$429,139
11 Other Non-Oper Rev $601,646 $607,662 $613,739 $619,876 $626,075 $632,336 $638,659 $645,046
12 SUBTOTAL NON-OPERATING REVENUES $2,726,646 $2,802,131 $2,726,685 $2,665,341 $2,576,438 $2,464,903 $2,326,359 $2,165,907
13 TOTAL REVENUES $36,914,814 $37,534,373 $36,583,978 $36,539,969 $36,468,487 $36,372,671 $36,242,794 $36,091,096
14 EXPENSES
15 Power $1,222,191 $1,283,301 $1,347,466 $1,414,839 $1,485,581 $1,559,860 $1,637,853 $1,719,745
16 Water Supply Fixed Costs $1,329,288 $1,363,952 $1,399,551 $1,436,112 $1,473,662 $1,512,227 $1,551,836 $1,592,519
17 Water Supply Variable Costs $14,653,605 $15,054,339 $12,445,532 $12,857,864 $13,286,614 $13,732,518 $14,196,348 $14,678,914
18 Salary Related Expenses $10,156,647 $10,969,179 $11,846,713 $12,794,450 $13,818,006 $14,923,447 $16,117,322 $17,406,708
19 UAL Funding OPEB / Pension $0 $924,226 $924,226 $924,226 $924,226 $924,226 $924,226 $924,226
20 Supplies and Services $4,651,466 $4,959,410 $4,713,760 $4,813,454 $4,915,413 $5,019,695 $5,126,362 $5,235,476
21 PFAS O&M $0 $0 $819,467 $1,245,591 $1,270,503 $1,295,913 $1,321,831 $1,348,268
22 Other Non-Operating Expenses $117,994 $120,354 $122,761 $125,216 $127,721 $130,275 $132,880 $135,538
23 TOTAL EXPENSES $32,131,191 $34,674,760 $33,619,476 $35,611,753 $37,301,725 $39,098,161 $41,008,660 $43,041,395
24 NET REVENUES $4,783,624 $2,859,613 $2,964,502 $928,216 -$833,238 -$2,725,490 -$4,765,866 -$6,950,300
25 DEBT SERVICE
26 Current Debt Service $2,729,381 $2,728,919 $2,724,681 $2,726,331 $2,723,581 $2,717,331 $2,722,206 $2,694,456
27 Proposed Debt Service $0 $0 $0 $0 $0 $0 $0 $0
28 LOC Interest Payments $0 $0 $0 $0 $0 $0 $0 $0
29 LOC Principal Payments $0 $0 $0 $0 $0 $0 $0 $0
30 TOTAL DEBT SERVICE $2,729,381 $2,728,919 $2,724,681 $2,726,331 $2,723,581 $2,717,331 $2,722,206 $2,694,456
31 CAPITAL EXPENDITURES
32 PAYGO $3,443,289 $11,111,021 $5,563,890 $6,374,204 $7,291,046 $7,268,648 $8,773,896 $7,461,030
33 LOC Funded $0 $0 $0 $0 $0 $0 $0 $0
34 New Debt Funded $0 $0 $0 $0 $0 $0 $0 $0
35 TOTAL CAPITAL EXPENDITURES $3,443,289 $11,111,021 $5,563,890 $6,374,204 $7,291,046 $7,268,648 $8,773,896 $7,461,030
36 NET CASH CHANGES -$1,389,046 -$10,980,327 -$5,324,069 -$8,172,319 -$10,847,865 -$12,711,470 -$16,261,969 -$17,105,786
37 BEGINNING UNRESTRICTED BALANCES $31,326,019 $29,936,972 $18,956,645 $13,632,576 $5,460,257 -$5,387,609 -$18,099,079 -$34,361,047
38 ENDING UNRESTRICTED BALANCES $29,936,972 $18,956,645 $13,632,576 $5,460,257 -$5,387,609 -$18,099,079 -$34,361,047 -$51,466,833
39 MIN TARGETS $24,257,626 $32,568,309 $26,760,971 $28,062,531 $29,396,079 $29,816,638 $31,792,968 $30,981,324
40 TARGET BALANCES $44,308,148 $53,320,188 $48,550,444 $50,941,479 $53,418,973 $55,040,677 $58,278,209 $58,790,827
41 Operations 90 days of O&M $7,922,759 $8,549,941 $8,289,734 $8,780,980 $9,197,686 $9,640,642 $10,111,724 $10,612,947
42 Capital 100%Current FY CIP $3,443,289 $11,111,021 $5,563,890 $6,374,204 $7,291,046 $7,268,648 $8,773,896 $7,461,030
43 Rate Stabilization 5%of Water Sales $1,039,602 $1,055,371 $1,055,371 $1,055,371 $1,055,371 $1,055,371 $1,055,371 $1,055,371
44 Emergency 5%of Capital Assets $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511
45 Conservation $104,911 $104,911 $104,911 $104,911 $104,911 $104,911 $104,911 $104,911 $104,911
46 Employee Liability $260,554 $260,554 $260,554 $260,554 $260,554 $260,554 $260,554 $260,554 $260,554
47 MWD Contingency 100%of WS if on 100% MWD $20,050,523 $20,751,880 $21,789,474 $22,878,947 $24,022,895 $25,224,039 $26,485,241 $27,809,504
48 Debt Coverage (excl. LOC)1.75x 1.05x 1.09x .34x -.31x -1.00x -1.75x -2.58x
49 Min Debt Coverage 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x
50 Policy Debt Coverage 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x
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2021 RATE STUDY REPO RT 23
The top right graph in Figure 4-2 graphically shows the operating financial plan represented in Table 4-10. In the
upper right graph, District costs are represented by the sum of the stacked bars. Note that debt service is small
relative to other costs; therefore, is difficult to visualize in Figure 4-2. The District would use reserves to fund a
revenue shortfall, as shown by the red bars below the x-axis. As indicated in Table 4-10 and Figure 4-2 (bottom
right graph), ending reserve balances become negative starting in FY 2025.
Figure 4-2: Status Quo Water Financial Plan
4.1.6. PROPOSED WATER FINANCIAL PLAN
Raftelis developed a long-term financial plan model incorporating the known and forecasted cost increases for
operating requirements and capital expenditures. The results were presented to and discussed with the District’s
Board of Directors. The proposed annual revenue adjustments for the Water Fund, as well as the planned future
debt issuance, are shown in Table 4-11.
Table 4-11: Proposed Annual Water Revenue Adjustments
Fiscal Year Effective Water New Water Debt
2022 July 9%
2023 July 9% $15M
2024 July 9%
2025 July 9%
2026 July 9%
The graph in the top right of Figure 4-3 shows the operating financial plan represented in Table 4-12 with revenue
adjustments (top left) showing sufficient debt coverage. District costs are represented by the sum of the stacked
bars. The capital improvement plan (bottom left) is partially funded by issuing debt in FY 2023. Ending reserve
balances, shown in the bottom right chart, achieve minimum targets (red dotted line in bottom right chart) in all
Page 41 of 172
24 YORBA LINDA WATER DI STRICT
but one year. By FY 2028 the District will achieve its reserve target, which includes the Water Contingency
Reserve.
Figure 4-3: Proposed Water Financial Plan
The revenue adjustments in Table 4-11 are incorporated into Raftelis’ recommended financial plan in Table 4-12.
Under this proposed financial plan scenario, the District’s financial position is greatly improved compared to the
“status quo” plan described in Table 4-10. Starting in FY 2023 the projected cashflow is positive and minimum
reserve targets are met. Equally critical, ending reserve balances will be at, or close to, target reserve values and the
District meets its debt covenant obligations in each year.
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2021 RATE STUDY REPO RT 25
Table 4-12: Proposed Water Financial Plan
4.2. Water Cost of Service Analysis
This rate Study conforms to the principles set forth in the American Water Works Association M1 Manual.
4.2.1. PROPORTIONALITY
As stated in the M1 Manual, the AWWA Rates and Charges Subcommittee agrees with the requirements of
Proposition 218 that “the costs of water rates and charges should be recovered from classes of customers in
proportion to the cost of serving those customers.” An agency’s revenue requirements are, by definition, the total
cost of providing the applicable service. This cost is then used as the basis to develop unit costs, by cost component,
to allocate costs to the various customer classes in proportion to the water services rendered.
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 REVENUES
2 OPERATING REVENUES
3 Revenues from Current Rates $32,618,516 $33,003,575 $33,016,068 $33,024,991 $33,033,914 $33,041,053 $33,041,053 $33,041,053
4 Proposed Rev Adjustments $0 $2,970,322 $6,210,322 $9,743,330 $13,596,152 $17,796,702 $22,372,100 $27,359,284
5 PFAS Impact Fee $745,002 $895,771 $0 $0 $0 $0 $0 $0
6 Other Operating Rev $824,650 $832,897 $841,225 $849,638 $858,134 $866,715 $875,383 $884,136
7 SUBTOTAL OPERATING REVENUES $34,188,168 $37,702,564 $40,067,615 $43,617,959 $47,488,200 $51,704,470 $56,288,535 $61,284,473
8 NON-OPERATING REVENUES
9 Property Tax $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000 $1,950,000
10 Investment Income $175,000 $259,394 $250,193 $317,979 $380,617 $430,582 $485,385 $568,275
11 Other Non-Oper Rev $601,646 $607,662 $613,739 $619,876 $626,075 $632,336 $638,659 $645,046
12 SUBTOTAL NON-OPERATING REVENUES $2,726,646 $2,817,057 $2,813,932 $2,887,855 $2,956,692 $3,012,918 $3,074,044 $3,163,321
13 TOTAL REVENUES $36,914,814 $40,519,621 $42,881,547 $46,505,814 $50,444,891 $54,717,389 $59,362,579 $64,447,794
14 EXPENSES
15 Power $1,222,191 $1,283,301 $1,347,466 $1,414,839 $1,485,581 $1,559,860 $1,637,853 $1,719,745
16 Water Supply Fixed Costs $1,329,288 $1,363,952 $1,399,551 $1,436,112 $1,473,662 $1,512,227 $1,551,836 $1,592,519
17 Water Supply Variable Costs $14,653,605 $15,054,339 $12,445,532 $12,857,864 $13,286,614 $13,732,518 $14,196,348 $14,678,914
18 Salary Related Expenses $10,156,647 $10,969,179 $11,846,713 $12,794,450 $13,818,006 $14,923,447 $16,117,322 $17,406,708
19 UAL Funding OPEB / Pension $0 $924,226 $924,226 $924,226 $924,226 $924,226 $924,226 $924,226
20 Supplies and Services $4,651,466 $4,959,410 $4,713,760 $4,813,454 $4,915,413 $5,019,695 $5,126,362 $5,235,476
21 PFAS O&M $0 $0 $819,467 $1,245,591 $1,270,503 $1,295,913 $1,321,831 $1,348,268
22 Other Non-Operating Expenses $117,994 $120,354 $122,761 $125,216 $127,721 $130,275 $132,880 $135,538
23 TOTAL EXPENSES $32,131,191 $34,674,760 $33,619,476 $35,611,753 $37,301,725 $39,098,161 $41,008,660 $43,041,395
24 NET REVENUES $4,783,624 $5,844,861 $9,262,071 $10,894,061 $13,143,167 $15,619,228 $18,353,919 $21,406,399
25 DEBT SERVICE
26 Current Debt Service $2,729,381 $2,728,919 $2,724,681 $2,726,331 $2,723,581 $2,717,331 $2,722,206 $2,694,456
27 Proposed Debt Service $0 $0 $382,644 $765,289 $765,289 $765,289 $765,289 $765,289
28 LOC Interest Payments $0 $0 $0 $0 $0 $0 $0 $0
29 LOC Principal Payments $0 $0 $0 $0 $0 $0 $0 $0
30 TOTAL DEBT SERVICE $2,729,381 $2,728,919 $3,107,326 $3,491,620 $3,488,870 $3,482,620 $3,487,495 $3,459,745
31 CAPITAL EXPENDITURES
32 PAYGO $3,443,289 $11,111,021 $0 $0 $4,529,141 $7,268,648 $8,773,896 $7,461,030
33 LOC Funded $0 $0 $0 $0 $0 $0 $0 $0
34 New Debt Funded $0 $0 $5,563,890 $6,374,204 $2,761,906 $0 $0 $0
35 TOTAL CAPITAL EXPENDITURES $3,443,289 $11,111,021 $5,563,890 $6,374,204 $7,291,046 $7,268,648 $8,773,896 $7,461,030
36 NET CASH CHANGES -$1,389,046 -$7,995,079 $6,154,745 $7,402,441 $5,125,156 $4,867,959 $6,092,528 $10,485,624
37 BEGINNING UNRESTRICTED BALANCES $31,326,019 $29,936,972 $21,941,893 $28,096,638 $35,499,079 $40,624,235 $45,492,194 $51,584,722
38 ENDING UNRESTRICTED BALANCES $29,936,972 $21,941,893 $28,096,638 $35,499,079 $40,624,235 $45,492,194 $51,584,722 $62,070,346
39 MIN TARGETS $24,257,626 $32,568,309 $26,760,971 $28,062,531 $29,396,079 $29,816,638 $31,792,968 $30,981,324
40 TARGET BALANCES $44,308,148 $53,320,188 $48,550,444 $50,941,479 $53,418,973 $55,040,677 $58,278,209 $58,790,827
41 Operations 90 days of O&M $7,922,759 $8,549,941 $8,289,734 $8,780,980 $9,197,686 $9,640,642 $10,111,724 $10,612,947
42 Capital 100%Current FY CIP $3,443,289 $11,111,021 $5,563,890 $6,374,204 $7,291,046 $7,268,648 $8,773,896 $7,461,030
43 Rate Stabilization 5%of Water Sales $1,039,602 $1,055,371 $1,055,371 $1,055,371 $1,055,371 $1,055,371 $1,055,371 $1,055,371
44 Emergency 5%of Capital Assets $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511 $11,486,511
45 Conservation $104,911 $104,911 $104,911 $104,911 $104,911 $104,911 $104,911 $104,911 $104,911
46 Employee Liability $260,554 $260,554 $260,554 $260,554 $260,554 $260,554 $260,554 $260,554 $260,554
47 MWD Contingency 100%of WS if on 100% MWD $20,050,523 $20,751,880 $21,789,474 $22,878,947 $24,022,895 $25,224,039 $26,485,241 $27,809,504
48 Debt Coverage (excl. LOC)1.75x 2.14x 2.98x 3.12x 3.77x 4.48x 5.26x 6.19x
49 Min Debt Coverage 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x
50 Policy Debt Coverage 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x
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26 YORBA LINDA WATER DI STRICT
The concept of proportionality requires that cost allocations consider both the average quantity of water consumed
(base) and the peak rate at which it is consumed (known as peaking or extra capacity). A water system is designed
to meet peak demands. The additional costs associated with designing, constructing, and maintaining facilities to
meet these peak demands must be allocated to those customers whose usage requires facilities to upsize in response
to peak demand. In allocating the costs of service, the industry standard as promulgated by AWWA’s M1 Manual is
to group customers with similar system demands into common rate blocks.
4.2.2. WATER COST OF SERVICE ANALYSIS
A cost-of-service analysis distributes a utility’s revenue requirements (costs) to each customer class. Figure 4-4
provides a general overview of a cost-of-service analysis. Each step shown below will be described in greater detail
in the context of the District’s service costs.
Figure 4-4: Cost of Service Process
4.2.2.1. Step 1 – Determine Revenue Requirement
The revenue requirement is the amount of (annual) revenue the utility must generate to meet its estimated annual
operating expenses, debt service, capital expenses, and reserve funding. The revenue requirement from rates is
shown in Table 4-13, line 7. Non-rate revenues (i.e., revenue offsets) are subtracted from the revenue requirement
in line 7 to obtain the net revenue requirement from current rates in line 16. This amount is the same value (after
subtracting Line 6) as current rate revenue on line 3 of Table 4-12. The current rates were not implemented for the
full FY 2021; thus, the adjustment for annualized current rate revenues (line 6) is added to the requirements.
Step 1:
Determine
Revenue
Requirements
Step 2:
Functionalize O&M
and Capital Costs and
Allocate
Functionalized Costs
to Cost Components
Step 3:
Allocate Revenue
Requirements to
Cost Components
Step 4:
Calculate Unit Cost
of Service by Cost
Component
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2021 RATE STUDY REPO RT 27
Table 4-13: FY 2021 Revenue Requirement
Current Revenue Requirements Source Table(s) FY 2021
1 REVENUE REQUIREMENTS
2 O&M Expenses Table 4-12 and
Table 4-13 $32,131,191
3 Debt Service Table 4-12 $2,729,381
4 Rate Funded CIP Table 4-12 $3,443,289
5 Reserve Funding w/o Revenue Adjustment Table 4-11 ($1,389,046)
6 Annualized Current Year Rate Revenue $361,885
7 Subtotal Revenue Requirements $37,276,699
8 Less Other Revenue Offset
9 PFAS Impact Fee Table 4-12 $745,002
10 Other Operating Revenues Table 4-12 $824,650
11 Property Tax Table 4-12 $1,950,000
12 Investment Income Table 4-12 $175,000
13 Other Non-Operating Revenues Table 4-12 $601,646
14 Subtotal Other Revenue Offset $4,296,298
15
16 Net Revenue Requirement
(Excluding Revenue Adj ustments)
[7] - [15] $32,980,401
4.2.2.2. Step 2 - Functionalize O&M and Capital Costs and Allocate Functionalized
Costs to Cost Components
Raftelis utilized the base-extra capacity method, described in AWWA’s M1 Manual, which consists of several cost
causation components. Functionalization of costs allows a more robust allocation of costs to cost causation
components, which include:
» Water supply costs are direct costs incurred to produce or obtain water (raw water purchases).
» Base fixed costs are the operating and capital costs of the water system associated with serving customers at
a constant, or average, rate of use.
» Extra capacity costs, or peaking costs, represent the costs incurred to meet customer peak demands for water
in excess of average day usage. Total extra capacity costs are subdivided into costs associated with
maximum day and maximum hour demands. The maximum day demand is the maximum amount of
water used in a single day in a year. The maximum hour (max hour) demand is the maximum usage in an
hour on the maximum usage day (max day). Various facilities are designed to meet customer peaking
needs. For example, transmission lines or reservoirs (storage) are designed to meet max day requirements.
Both must be designed larger than they would be if the same amount of water were being used at a
constant rate throughout the year. The cost associated with constructing a larger line or reservoir is based
on systemwide peaking factors. For example, if the max day factor is 2.0, then certain system facilities
must be designed at least twice as large as required to meet average daily demand. In this case, half of the
cost would be allocated to base (or average day demand) and the other half allocated to max day. The
calculation of the max hour and max day demands is explained below.
» Billing and customer service costs include costs such as meter reading, billing, collections, and customer
accounting.
» Meter servicing costs include maintenance and capital costs associated with servicing meters. These costs are
assigned based on meter size or equivalent meter capacity.
» General and administrative costs represent all other service and administrative costs that do not serve a
specific function (indirect costs).
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28 YORBA LINDA WATER DI STRICT
» Conservation includes costs associated with conservation programs and services offered to District
customers.
Peaking costs are further divided into maximum day and maximum hour demand. The maximum day demand is
the maximum amount of water used in a single day in a year. The maximum hour demand is the maximum usage
in an hour on the maximum usage day. Different facilities, such as distribution and storage facilities, and the O&M
costs associated with those facilities are designed to meet the peaking demands of customers. Therefore, extra
capacity costs include the O&M and capital costs associated with meeting peak customer demand. This method is
consistent with AWWA’s M1 Manual and is widely used in the water industry to perform cost-of-service analyses.
After functionalizing expenses, the next step is to allocate the functionalized expenses to cost causation
components. To do so, we must first identify systemwide peaking factors. The systemwide peaking factors are used
to derive the cost component allocation bases (i.e., percentages). Functionalized expenses are then allocated to the
cost causation components using these allocation bases. To understand the interpretation of the percentages, we
first establish the base use as the average daily demand during the year.
The base demand is assigned a value of 1.0. The max day and max hour values in Table 4-14 are extracted from
the District’s 2005 Water Master Plan6 and are relative to the average day demand of 1.00.
Table 4-14: Water System Peaking Factors
To determine the relative proportion of costs to assign to supply, base delivery, maximum day, and maximum
hour, allocations are calculated based on the factors in Table 4-14. Cost components that are solely related to
providing average day demand (ADD) are allocated entirely to base delivery. Cost components that are designed to
meet max day peaks, such as reservoirs and transmission facilities, are allocated to both base delivery and max day
factors.
The max day factor of the District’s system is 1.5, which means that max day demand is expected to be 150% of
the average day capacity. Calculating the max day allocation of functional costs to the cost causation components
results in the following:
𝐴𝑎𝑟𝑐 𝐹�ℎ𝑥𝑐𝑐 𝐴𝑙𝑙𝑙𝑐𝑎𝑟�ℎ𝑙𝑙= 𝐴𝑎𝑟𝑐 𝐹�ℎ𝑥𝑐𝑐
𝑀𝑎𝑥 𝐷𝑎𝑥=1
1.5 ≈66.7%
𝑀𝑎𝑥 𝐷𝑎𝑥 𝐴𝑙𝑙𝑙𝑐𝑎𝑟�ℎ𝑙𝑙= 1 −𝐴𝑎𝑟𝑐/𝑀𝑎𝑥 𝐷𝑎𝑥 ≈33.3%
Facilities designed for max hour peaks, such as distribution system facilities, are allocated similarly. The max hour
factor is 2.55, so max hour facilities are designed to provide 255% of the average day capacity. The allocation of
max hour facilities is shown below:
𝐴𝑎𝑟𝑐 𝐹�ℎ𝑥𝑐𝑐 𝐴𝑙𝑙𝑙𝑐𝑟�ℎ𝑙𝑙= 𝐴𝑎𝑟𝑐
𝑀𝑎𝑥 𝐻𝑙𝑟𝑟 =1
2.55 ≈39.2%
6 Page 7-7, Section 7.6
Potable Water Peaking Factors
1 Average Day Demand 1.00
2 Max Day Demand 1.50
3 Max Hour Demand 2.55
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2021 RATE STUDY REPO RT 29
𝑀𝑎𝑥 𝐷𝑎𝑥 𝐴𝑙𝑙𝑙𝑐𝑎𝑟�ℎ𝑙𝑙= 𝑀𝑎𝑥 𝐷𝑎𝑥−𝐴𝑎𝑟𝑐
𝑀𝑎𝑥 𝐻𝑙𝑟𝑟=1.5 −1.00
2.55 ≈19.6%
𝑀𝑎𝑥 𝐻𝑙𝑟𝑟 𝐴𝑙𝑙𝑙𝑐𝑎𝑟�ℎ𝑙𝑙= 1 −39.2%−19.6% ≈41.2%
The results of the allocation are presented below in Table 4-15.
Table 4-15: Allocation of Extra Capacity Functional Costs to Cost Causation Categories
Peaking Factor Base Max Day Max Hour
Base 1.00 100%
Max Day 1.50 66.7% 33.3%
Max Hour 2.55 39.2% 19.6% 41.2%
The peaking factors are applied to the estimated water usage during FY 2021 in Table 4-16 to estimate demand
peaking levels. As shown, the Annual Usage is 7,380,219 ccf, this results in average daily usage of 20,220 ccf/day
(base usage). The Max Day factor of 1.50 and Max Hour factor of 2.55 is applied to the base to calculate
30,330 ccf/day and 51,560 ccf/day, respectively. The percentages from Table 4-15 are also applied to the operating
and capital improvement expenses in Table 4-17 to allocate costs among base, max day, and max hour cost
components. This will be utilized in allocating functionalized expenses to cost components.
Table 4-16: Water Usage Peaking
Water Usage FY 2021 Units
Annual Usage 7,380,219 ccf
Average Daily Usage 20,220 ccf / day
Max Day Factor 1.50
Max Day Demand 30,330 ccf / day
Extra Capacity Max Day 10,110 ccf / day
Max Hour Factor 2.55
Max Hour Demand 51,560 ccf / day
Extra Capacity Max Hour 21,231 ccf / day
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30 YORBA LINDA WATER DI STRICT
Table 4-17: O&M and Capital Allocation to Cost Causation Components
Functions Water
Supply
Base Max
Day
Max
Hour
Billing
& CS
Meters Conservation General Total
1 Source of Supply 100.0% 0.0% 100.0%
2 Storage 66.7% 33.3% 0.0% 100.0%
3 Pumping 39.2% 19.6% 41.2% 0.0% 100.0%
4 Treatment 66.7% 33.3% 0.0% 100.0%
5 Transmission 66.7% 33.3% 0.0% 100.0%
6 Distribution 39.2% 19.6% 41.2% 0.0% 100.0%
7 T&D 39.2% 19.6% 41.2% 0.0% 100.0%
9 Meter Service 100.0% 0.0% 100.0%
10 Billing & CS 100.0% 0.0% 100.0%
11 Conservation 100.0% 0.0% 100.0%
12 General & Admin 100.0% 100.0%
Table 4-18: Functionalized Water Capital Assets
Asset Class RCLD Source of
Supply Storage Pumping Treatment T&D Meter
Service
Billing
& CS
General &
Admin Total
Source of Supply $5,766,921 100.0% 0.0% 100.0%
Pumping Plant $22,381,037 100.0% 0.0% 100.0%
Transmission and
Distribution. Plant $187,792,880 100.0% 0.0% 100.0%
Water Treatment
Plant $1,234,061 100.0% 0.0% 100.0%
General Plant $12,555,312 100.0% 100.0%
Total Water Asset
Values $229,730,212 $5,766,921 $0 $22,381,037 $1,234,061 $187,792,880 $0 $0 $12,555,312 $229,730,212
% of Assets 2.51% 0% 9.74% 0.54% 81.74% 0% 0% 5.47%
% of Assets for
Salary expenses 0% 9.99% 0.55% 83.85% 0% 0% 5.61%
Table 4-18 displays the distribution of assets across several functions, using RCLD valuation of the District’s water assets. Raftelis allocated salary
related expenses first to water functions as shown in Table 4-19 using the functionalized water capital as approximates and estimated personnel
allocated to billing & customer service of 8.2%. The last line in Table 4-18 shows a percentage breakdown for salary expenses. This line is used to
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2021 RATE STUDY REPO RT 31
calculate the percentage to allocate for salary related expenses, shown in Table 4-19 below. The functionalized salary-related expenses were further
allocated to cost components as shown in Table 4-20 using allocation factors from Table 4-17.
Table 4-19: Percent Allocation of Salary Related Expenses to Cost Causation Components
Salary Related Expenses % allocation calculation
(Rounded from Table 4-18)
% FY 2021
Pumping 9.99% x (1-8.2%) 8.94% $908,354
Treatment 0.55% x (1-8.2%) 0.49% $50,085
T&D 83.85% x (1-8.2%) 75.04% $7,621,739
Billing & CS 8.2% 8.20% $832,845
General & Admin 5.61% x (1-8.2%) 7.32% $743,624
Total Salary Related Expenses $10,156,647
Table 4-20: Dollar Allocation of Salaries and Benefits to Cost Causation Components
Salary Related Expenses Base Max Day Max Hour Billing & CS General Total
Pumping $356,217 $178,109 $374,028 $0 $0 $908,354
Treatment $33,390 $16,695 $0 $0 $0 $50,085
T&D $2,988,917 $1,494,459 $3,138,363 $0 $0 $7,621,739
Billing & CS $0 $0 $0 $832,845 $0 $832,845
General & Admin $0 $0 $0 $0 $743,624 $743,624
Total Salary Related Expenses $3,378,525 $1,689,262 $3,512,391 $832,845 $743,624 $10,156,647
The O&M cost allocation total in Table 4-21 utilizes the percentages from Table 4-17 to distribute the expenses across the various cost causation
components. Table 4-22 below utilizes the percentages from Table 4-17 to distribute the capital costs across the various cost causation components.
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32 YORBA LINDA WATER DI STRICT
Table 4-21: Allocation of O&M Costs to Cost Causation Components
Table 4-22: Asset Allocation to Cost Causation Components
4.2.2.3. Step 3 – Allocate Revenue Requirements to Cost Causation Components
Table 4-23 shows the calculation of the revenue requirement in Table 4-13 paired with the corresponding allocation percentages for each line. For
example, O&M expenses are allocated to the cost causation categories according to Table 4-21 while capital costs are allocated according to Table 4-22.
Functions FY 2021 Water
Supply Base Max Day Max Hour Billing &
CS Meters Conservation General Total
1 Source of Supply $17,205,084 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
2 Pumping $908,354 0.0% 39.2% 19.6% 41.2% 0.0% 0.0% 0.0% 0.0% 100.0%
3 Treatment $50,085 0.0% 66.7% 33.3% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
4 T&D $7,621,739 0.0% 39.2% 19.6% 41.2% 0.0% 0.0% 0.0% 0.0% 100.0%
5 Meter Service $528,780 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0%
6 Billing & CS $1,169,794 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 100.0%
7 Conservation $0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 100.0%
8 General & Admin $4,647,355 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0%
9 Total $32,131,191 $17,205,084 $3,378,525 $1,689,262 $3,512,391 $1,169,794 $528,780 $0 $4,647,355 $32,131,191
10 Total Allocation
% 53.5% 10.5% 5.3% 10.9% 3.6% 1.6% 0% 14.5% 100%
Functions RCLD Water
Supply
Base Max Day Max Hour Billing
& CS
Meters Conservation General Total
1 Source of Supply $5,766,921 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
2 Pumping $22,381,037 0.0% 39.2% 19.6% 41.2% 0.0% 0.0% 0.0% 0.0% 100.0%
3 Treatment $1,234,061 0.0% 66.7% 33.3% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
4 T&D $187,792,880 0.0% 39.2% 19.6% 41.2% 0.0% 0.0% 0.0% 0.0% 100.0%
5 Meter Service $0 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0%
6 Billing & CS $0 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 100.0%
7 Conservation $0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 100.0%
8 General & Admin $12,555,312 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0%
9 Total $229,730,212 $5,766,921 $83,243,852 $41,621,926 $86,542,201 $0 $0 $0 $12,555,312 $229,730,212
10 % Allocation w/ WS 2.5% 36.2% 18.1% 37.7% 0.0% 0.0% 0.0% 5.5% 100%
11 % Allocation w/o WS & General 0% 39.4% 19.7% 40.9% 100%
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2021 RATE STUDY REPO RT 33
Table 4-23 summarizes the revenue requirement by cost component. Table 4-24 summarizes allocation of the revenue requirement to cost-causative
components.
Page 51 of 172
34 YORBA LINDA WATER DI STRICT
Table 4-23: Allocation of Revenue Requirement to Cost Causation Components
Current Revenue
Requirements FY 2021 ($) Water
Supply Base Max Day Max Hour Billing & CS Meters General
1 REVENUE REQUIREMENTS
2 O&M Expenses $32,131,191 $17,205,084 $3,378,525 $1,689,262 $3,512,391 $1,169,794 $528,780 $4,647,355
3 Debt Service $2,729,381 $0 $1,074,719 $537,360 $1,117,302 $0 $0 $0
4 Rate Funded CIP $3,443,289 $0 $1,355,827 $677,913 $1,409,548 $0 $0 $0
5 Reserve Funding w/o
Rev Adjustment -$1,389,046 -$2,169,555 $176,668 $88,334 $183,668 $61,170 $27,651 $243,017
6 Annualized Current
Year Rate Revenue $361,885 $0 $81,913 $40,956 $85,158 $28,362 $12,820 $112,676
7 Subtotal Revenue
Requirements $37,276,699 $15,035,529 $6,067,651 $3,033,826 $6,308,068 $1,259,326 $569,251 $5,003,048
8 Less Other Revenue Offset
9 PFAS Impact Fee $745,002 $745,002 $0 $0 $0 $0 $0 $0
10 Other Operating Rev $824,650 $0 $186,660 $93,330 $194,056 $64,630 $29,214 $256,761
11 Property Tax $1,950,000 $0 $441,383 $220,691 $458,871 $152,826 $69,082 $607,147
12 Investment Income $175,000 $0 $39,611 $19,806 $41,181 $13,715 $6,200 $54,488
13 Other Non-Oper Rev $601,646 $0 $136,183 $68,091 $141,579 $47,152 $21,314 $187,327
14 Subtotal Other
Revenue Offset $4,296,298 $745,002 $803,836 $401,918 $835,686 $278,323 $125,810 $1,105,723
15
Net Revenue
Requirement excl.
Rev Adjustments
$32,980,401 $14,290,526 $5,263,816 $2,631,908 $5,472,382 $981,003 $443,441 $3,897,325
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2021 RATE STUDY REPO RT 35
Table 4-24: Summary Revenue Requirement Allocated to Cost Causation Components
Cost Categories Allocation of Revenue
Requirement
1 Water Supply $14,290,526
2 Base Fixed $5,263,816
3 Max Day $2,631,908
4 Max Hour $5,472,382
5 Billing & CS $981,003
6 Meters & Services $443,441
7 Conservation $0
8 General $3,897,325
9 Total $32,980,401
General costs are reallocated to the cost causation categories, as shown in Table 4-25. Each category’s
proportional share of the District’s general and administrative costs is calculated by dividing that category’s cost in
column B by the total cost shown in column B, line 9. Most of the water supply costs are direct costs from
wholesale purchases; therefore, general cost allocation is excluded from this cost component. The resulting
allocation of general and administrative costs are shown in Table 4-25, column D.
Table 4-25: General Cost Reallocation
Cost
Component
Allocation of
Revenue Requirement
A
General Cost Reallocation
(B) C = B / B9 D = A8 x C
1 Water Supply $14,290,526
2 Base Fixed $5,263,816 $5,263,816 35.6% $1,386,833
3 Max Day $2,631,908 $2,631,908 17.8% $693,417
4 Max Hour $5,472,382 $5,472,382 37.0% $1,441,783
5 Billing & CS $981,003 $981,003 6.6% $258,460
6 Meters &
Services $443,441 $443,441 3.0% $116,831
7 Conservation $0 $0 0.0% $0
8 General $3,897,325 (100.0%) -$3,897,325
9 Total $32,980,401 $14,792,550 $0
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36 YORBA LINDA WATER DI STRICT
The resulting reallocated revenue requirement is shown in Table 4-26, column C. These allocations are used to
develop cost component unit costs of service in step 4.
Table 4-26: FY 2021 Allocated Revenue Requirements after General Cost Reallocation
Cost Categories
Revenue Requirement
Prior to General Cost
Reallocation
General Cost Reallocation Reallocated Revenue
Requirement
A B C = A +B
1 Water Supply $14,290,526 $14,290,526
2 Base Fixed $5,263,816 $1,386,833 $6,650,649
3 Max Day $2,631,908 $693,417 $3,325,324
4 Max Hour $5,472,382 $1,441,783 $6,914,166
5 Billing & CS $981,003 $258,460 $1,239,463
6 Meters & Services $443,441 $116,831 $560,272
7 Conservation $0 $0 $0
8 General $3,897,325 -$3,897,325 $0
9 Total $32,980,401 $0 $32,980,401
The water system is designed to meet peak demand plus fire protection. Thus a portion of peak demand is designed
for meeting fire protection. Public fire protection costs are peaking costs and will be recovered through rates as
public fire protection benefits all users within the water system. Private fire protection costs are recovered through
private fire service charges. Table 4-27 shows the calculations of fire demand units for both private and public fire
protection services. The fire demand factor (Column C) is based on the Hazen-Williams equation for flow through
pressure conduits. The flow demand is dependent on the diameter of the fire line raised to the power of 2.63. For
example, to calculate the fire demand units for 6” fire lines you would calculate 6^2.63 = 111.31 (Fire demand
factor), then multiply this factor by 137 (# of meters) to arrive at 15,250. Repeat these steps for each fire line size
and multiply the sum by 12 billing periods to calculate the total fire demand units of 531,426 (column F).
Table 4-27: Public and Private Fire Demands
Fire Service # of meters Fire Demand
Factor
Fire Demand
Units Fire Demand % Fire Demand
Units
A B C = A^2.63 D = B x C E F = D x 12
Private Fire 44,286 9% 531,426
4 114 38.32 4,368
6 137 111.31 15,250
8 95 237.21 22,535
10 5 426.58 2,133
Public Hydrants 446,913 91%
6 4,015 111.31 446,913
Table 4-28 shows the allocated peaking costs (max day and max hour) for public and private fire protection.
Revenue requirements (Line 1) shows the revenue requirements that must then be divided by the extra capacity
demand (line 2) to arrive at the unit cost of service (line 3 and 4, by ccf and thousands of gallons respectively). Max
day is calculated by the following: 1,500 gpm (gallons per minute) x 2 hours (duration) x 60/1000 (conversion to
kgal per hour) = 180. Max hour is 1,500 x 60/1000 x 24 – Max day = 1,980. Note: the fire demand (line 5) is
calculated using 1,500 gpm, which the District provided to Raftelis. The unit cost of service is then multiplied by
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2021 RATE STUDY REPO RT 37
the fire demand (line 5) to arrive at fire protection costs (line 6). The fire demand % from Table 4-27 is then applied
to fire protection costs (line 6) to receive the allocation amounts (line 7 & 8).
Table 4-28: Allocation of Peaking Costs to Fire Protection
Allocation of Peaking
Costs to Fire
Max Day Max Hour Notes
1 Revenue Requirements $3,325,324 $6,914,166 Table 4-25, [C3] and [C4]
2 Extra capacity demand ccf / day 10,110 21,231 Table 4-16
3 Unit Cost of service $ / ccf $328.92 $325.67 [1] / [2]
4 Unit Cost of service $ / kgal $439.73 $435.38 [3] x 1000 / 748
5 Fire Demand kgal 180 kgal 1,980 kgal 1,500 gpm for 2 hrs
6 Fire Protection Costs $79,151 $862,060 [4] x [6]
7 Private Fire 9% $7,136 $77,722 9% x [7]
8 Public Hydrants 91% $72,015 $784,339 91% x [7]
Table 4-29 shows the reallocated revenue requirements for the fire lines. Shown in column B are the amounts from
Table 4-28 that are allocated to private fire. These have been removed from the revenue requirements as they will
have a separate charge. The revenue requirements allocated to public hydrants are not removed due to the service
being of public benefit.
Table 4-29: Reallocated FY 2021 Revenue Requirements
Cost Categories
Revenue
Requirement
Fire Protection
Allocation
Reallocated Net
Revenue
Requirement
A B C = A + B
1 Water Supply $14,290,526 $14,290,526
2 Base Fixed $6,650,649 $6,650,649
3 Max Day $3,325,324 ($7,136) $3,318,188
4 Max Hour $6,914,166 (77,722) $6,836,444
5 Billing & CS $1,239,463 $1,239,463
6 Meters & Services $560,272 $560,272
11 Private Fire $84,858 $84,858
12 Total $32,980,401 $32,980,401
4.2.2.4. Step 4 – Calculate Unit Cost of Service
In Step 4, we develop unit costs for each cost component. The unit costs are developed by dividing the total cost for
each cost component by the total annual service units attributable to the cost component.
Table 4-30 illustrates the meter ratios using the meter hydraulic capacity as listed in Table B-1 of AWWA’s M1
Manual. These ratios define meter sizes in terms of their equivalent capacity to 3/4-inch meters. For example, a 1-
inch meter has the equivalent capacity of 1.67 3/4-inch meters (column C, line 3). Using these ratios allows costs
to be distributed equitably across different meter sizes. To derive the total equivalent meter units (EMUs) served by
the District, we multiply the total meters at each meter size by their respective meter capacity ratios. The resulting
EMUs are shown in column E. Total meters at each size are shown in column A. The table also lists the total
annual bills for all meters in each meter size (column D), which is the number of meters multiplied by 12 months.
Total bills and EMUs are the units of service for the unit costs by cost component.
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38 YORBA LINDA WATER DI STRICT
Table 4-30: Meter Ratios and Equivalent Meter Units
Units of Service
Meter Size
FY 2021 Capacity AWWA Ratio FY 2021
# of meters gpm Bills EMUs
A B C = B / B3 D = A x 12 E = D x C
5/8 26 20 1.00 312 312
3/4 5,602 30 1.00 67,224 67,224
1 18,049 50 1.67 216,588 360,980
1 1/2 602 100 3.33 7,224 24,080
2 1,108 160 5.33 13,296 70,912
3 7 350 11.67 84 980
4 3 630 21.00 36 756
6 1 1,600 53.33 12 640
Total Water
Meters 25,398 304,776 525,884
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2021 RATE STUDY REPO RT 39
Raftelis worked closely with District staff and the District’s Board of Directors to design the water rate structures that meet District objectives and meet
California regulatory requirements. As shown in Table 4-31, certain costs such as power, water supply, private fire, billing, and customer service (CS),
and meters are recovered through their respective water rate components. Some costs, however, are recovered across two different rate components. The
District Board instructed Raftelis to collect a portion of peaking costs from Capital Finance Charges to recover at least the current debt service payments.
The remaining peaking costs are recovered through the meter capacity component of the monthly service charges. The Board also made the decision to
collect approximately $3.4M, which is equal to the CIP for FY 2021, of the base fixed costs as part of the average fixed cost to deliver water to the end
user. The remainder of the base costs is recovered by the monthly service charges as part of the meter capacity component. Table 4-31, line 11 calculates
the unit cost of service for each rate component using the equivalent meter units in Table 4-30, fire demand units (FDUs) in Table 4-27, projected water
sales (ccf) in Table 4-4, and annualized customer bills (bills).
Table 4-31: FY 2021 Unit Cost of Service Calculations
Cost Categories
FY 2021
Net Revenues
from Rates
Monthly Service Charges Water Usage Rates Private Fire
Charges
Capital
Finance
Charges
A B C D E F G H
1 Power $1,222,191 $1,222,191
2 Water Supply
Fixed Costs $1,329,288 $1,329,288
3 Water Supply
Variable Costs $11,739,047 $11,739,047
4 Base $6,650,649 $3,207,360 $3,443,289
5 Peaking $10,154,632 $7,425,251 $2,729,381
6 Billing & CS $1,239,463 $1,239,463
7 Meters $560,272 $560,272
8 Private Fire $84,858 $84,858
9 Total $32,980,401 $1,239,463 $11,192,884 $13,068,335 $1,222,191 $3,443,289 $84,858 $2,729,381
10 Units of Service 304,776
bills
525,884
EMUs
7,380,219
ccf
7,380,219
ccf
7,380,219
ccf
531,426
FDUs
525,884
EMUs
11 Unit Cost of
Service $4.07 $21.29 $1.78 $0.17 $0.47 $0.16 $5.20
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40 YORBA LINDA WATER DI STRICT
4.3. Water Rate Design
4.3.1. PROPOSED MONTHLY FIXED SERVICE CHARGE
Fixed charges are designed to recover costs related to customer billing, meter servicing, and extra capacity costs.
Meter servicing costs are for such items as meter testing, repairs, and replacement. Table 4-32 derives the unit cost
for billing and customer service in column B and capacity in column C. Table 4-33 sums the billing and customer
service and capacity charges to derive the fixed cost per meter size prior to the proposed revenue adjustment
(column E). The unit cost in Table 4-32 (column C, row 3) is multiplied by the capacity ratio in Table 4-33
(column B) to derive the meter-based capacity charge in column D of Table 4-33. Table 4-34 presents the fixed
charges by meter size after shown utilizing revised COS.
Table 4-32: Development of Unit Monthly Fixed Service Charge
Line No. Fixed Charge Components Billing & Customer Service Capacity
A B C
1 Revenue Requirements $1,239,463 $11,192,884
2
Annual Units of Service
(Table 4-29)
304,776 bills 525,884 EMUs
3
Monthly Unit Cost
([1] / [2] rounded up)
$4.07 $21.29
Table 4-33: FY 2021 Revised Monthly Fixed Service Charges before Proposed Revenue Adjustment
Meter Size # of Meters Capacity Ratios Billing & CS Capacity Revised COS
A B (Table 4-30, C) C (Table 4-32) D = $21.29 x B E = C + D
5/8 26 1.00 $4.07 $21.29 $25.36
3/4 5,602 1.00 $4.07 $21.29 $25.36
1 18,049 1.67 $4.07 $35.48 $39.55
1 1/2 602 3.33 $4.07 $70.97 $75.04
2 1,108 5.33 $4.07 $113.55 $117.62
3 7 11.67 $4.07 $248.38 $252.45
4 3 21.00 $4.07 $447.09 $451.16
6 1 53.33 $4.07 $1,135.47 $1,139.54
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2021 RATE STUDY REPO RT 41
Table 4-34: FY 2021 COS Monthly Fixed Service Charges
Meter Size Current Fixed Charge Revised COS
5/8 $22.26 $25.36
3/4 $22.26 $25.36
1 $37.18 $39.55
1 ½ $74.14 $75.04
2 $118.67 $117.62
3 $259.84 $252.45
4 $467.59 $451.16
6 $1,039.15 $1,139.54
Table 4-35 shows the distribution of capital finance charges by meter size that were derived in Table 4-31. Capital
finance charges recovered via property tax statements will be collected semiannually rather than monthly.
Table 4-35: FY 2021 COS Capital Finance Charges
Meter Size # of Meters Capacity Ratios Monthly Capital Finance
Charges
Annual Capital Finance
Charges
A B (Table 4-29, C) C = $5.20 x B D = C x 12
5/8 26 1.00 $5.20 $62.40
3/4 5,602 1.00 $5.20 $62.40
1 18,049 1.67 $8.67 $104.04
1 1/2 602 3.33 $17.34 $208.08
2 1,108 5.33 $27.74 $332.88
3 7 11.67 $60.67 $728.04
4 3 21.00 $109.20 $1,310.40
6 1 53.33 $277.34 $3,328.08
Table 4-36 shows the development of private fire service charges. Revenue requirements (Line 1) are from
Table 4-31 and Annual Units of Service for column A is from Table 4-27 while column B is calculated. The EMU
amount of 530,096 is the combination of 525,884 EMUs (Water Meter Service, Table 4-32) and 4,212 EMUs from
351 private fire services. The 4,212 EMUs is included because the private fire services are typically attached to a
5/8” meter flow detector, which must also have services and replacements. The combined count of 530,096 will
ensure the private fire service charge incorporates its responsible share of the $560,272 revenue requirement.
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42 YORBA LINDA WATER DI STRICT
Table 4-36: Development of Private Fire Service Charges
Line No. Fixed Charge Components Private Fire Demand Meter Service
A B
1 Revenue Requirements $84,858 $560,272
2 Annual Units of Service 531,426 FDUs 530,096 EMUs7
3 Monthly Unit Cost
([1] / [2], rounded up) $0.16 $1.06
Table 4-37 shows the breakdown of the different components for private fire charges. Fire capacity (Column D ) is
calculated by multiplying monthly unit cost of private fire demand (from Table 4-36, column A) by fire demand
factor (column B). The revised COS in column E is calculated by adding Column B and D together.
Table 4-37: FY 2021 Private Fire Charges before Proposed Revenue Adjustment
Private Fire
Service # of Meters Fire Demand
Factors
Private Fire
Capacity
Component
Fire Line Revised COS
A B (Table 4-26) C (Table 4-36) D = $0.16 x B E = C + D
4 114 38.32 $1.06 $6.14 $7.20
6 137 111.31 $1.06 $17.81 $18.87
8 95 237.21 $1.06 $37.96 $39.02
10 5 426.58 $1.06 $68.26 $69.32
4.3.2. PROPOSED WATER USE CHARGES
Water use charges are volumetric rates ($/ccf) that recover the cost components shown in Table 4-38. The unit
costs and breakdown by category in Table 4-39 and Table 4-40. Table 4-39 values are directly from Table 4-31.
The summation shown in Table 4-39 is the combined unit costs for the revised FY 2021 period.
7 525,884 EMUs + 4,212 EMUs from 351 private fire services assumed with a 5/8 meter for flow detection, which also
require meter services and meter replacements
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2021 RATE STUDY REPO RT 43
Table 4-38: Water Use Cost Component Descriptions
Cost Component Description
Power Recovers Power Related Costs
Water Supply Recovers Water Supply Related Costs
Delivery Recover a portion of Base Costs to meet average demand
Table 4-39: FY 2021 Revised COS Water Usage Rate
Cost Categories
Water Usage Rates
Water Supply Power Delivery
A B C
1 Power $1,222,191
2 Water Supply Fixed
Costs $1,329,288
3 Water Supply Variable
Costs $11,739,047
4 Base $3,443,289
5 Total $13,068,335 $1,222,191 $3,443,289
6 Units of Service 7,380,219 ccf 7,380,219 ccf 7,380,219 ccf
7 Unit Cost of Service $1.78 $0.17 $0.47
Table 4-40: Revised FY 2021 Water Usage Rates (Before Revenue Adjustments)
Water Usage Rate Components Revised COS FY 2021 Rates
Water Supply $1.78
Power $0.17
Delivery $0.47
Total $2.42 / ccf
4.3.3. FIVE YEAR WATER RATE SCHEDULE
Table 4-41 contains the breakdown of the proposed five-year water rates through FY 2026. Calculations for the
revised COS analysis are shown in Table 4-33. A rate adjustment of 9% each fiscal year is recommended through
the end of FY 2026. The PFAS Impact Fee is not calculated as part of the cost of service for water. It will be
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44 YORBA LINDA WATER DI STRICT
implemented only during the period of Feb 1, 2021 to Dec 31, 2021 to mitigate the financial impact during the
construction period.
Table 4-41: Five-Year Proposed Water Rates
5-year Rate
Schedule FY 2021 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenue
Adjustments 9% 9% 9% 9% 9%
Monthly Service
Charges Current Revised
COS 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025
5/8 $22.26 $25.36 $27.65 $30.14 $32.86 $35.82 $39.05
3/4 $22.26 $25.36 $27.65 $30.14 $32.86 $35.82 $39.05
1 $37.18 $39.55 $43.13 $47.02 $51.26 $55.88 $60.91
1 1/2 $74.14 $75.04 $81.80 $89.17 $97.20 $105.95 $115.49
2 $118.67 $117.62 $128.21 $139.75 $152.33 $166.04 $180.99
3 $259.84 $252.45 $275.19 $299.96 $326.96 $356.39 $388.47
4 $467.59 $451.16 $491.77 $536.03 $584.28 $636.87 $694.19
6 $1,039.15 $1,139.54 $1,242.10 $1,353.89 $1,475.75 $1,608.57 $1,753.35
Capital Finance
Charges8
5/8 $5.20 $5.67 $6.19 $6.75 $7.36 $8.03
3/4 $5.20 $5.67 $6.19 $6.75 $7.36 $8.03
1 $8.67 $9.46 $10.32 $11.25 $12.27 $13.38
1 1/2 $17.34 $18.91 $20.62 $22.48 $24.51 $26.72
2 $27.74 $30.24 $32.97 $35.94 $39.18 $42.71
3 $60.67 $66.14 $72.10 $78.59 $85.67 $93.39
4 $109.20 $119.03 $129.75 $141.43 $154.16 $168.04
6 $277.34 $302.31 $329.52 $359.18 $391.51 $426.75
Private Fire
4 $16.00 $7.20 $7.85 $8.56 $9.34 $10.19 $11.11
6 $35.00 $18.87 $20.57 $22.43 $24.45 $26.66 $29.06
8 $59.00 $39.02 $42.54 $46.37 $50.55 $55.10 $60.06
10 $94.00 $69.32 $75.56 $82.37 $89.79 $97.88 $106.69
PFAS Impact Fee
5/8 $3.40 $3.40 $3.40
3/4 $3.40 $3.40 $3.40
1 $5.66 $5.66 $5.66
1 1/2 $11.32 $11.32 $11.32
2 $18.12 $18.12 $18.12
3 $39.66 $39.66 $39.66
4 $71.40 $71.40 $71.40
6 $181.32 $181.32 $181.32
Water Usage Rate
($/ccf) $2.86 $2.42 $2.64 $2.88 $3.14 $3.43 $3.74
8 Capital Finance Charges are assessed on the property roll on an annual basis. The charges sho wn in Table 4-41 are
monthly. For example, in FY 2022, a 5/8” meter will be assessed at $68.04 ($5.67 x 12 months).
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2021 RATE STUDY REPO RT 45
4.4. Water Customer Impact Analysis
Before implementing new rates, it is critical to evaluate how the proposed rate structure will impact District
customers. Table 4-5 shows the estimated bill impacts under the proposed FY 2022 rates for a typical residential
customer with a 1-inch meter with usage ranging from 5 ccf to 35 ccf. Note, the Water bill excludes the Capital
Finance Charges, which will be collected in the property tax rolls for each parcel. For a residential customer with a
1-inch meter the Capital Finance Charge will add $9.46 to their cost of water service, on a monthly basis.
Figure 4-5: Typical Residential Customer Bill Impacts
4.5. Water Drought Rate Development
4.5.1. WATER SHORTAGE STAGES AND PURPOSE OF DROUGHT RATES
The District’s water conservation ordinance consists of permanent year-round restrictions- focused on the
prevention of water waste- and four “Water Supply Shortage” stages as shown in Figure 4-6. These stages impose
increasing restrictions on water use to allow the District to meet all health and safety guidelines in the face of water
supply shortages. While permanent restrictions based on the conservation ordinance will be in effect all the time,
the District enters and exits stages based on Metropolitan Water District of Southern California’s (MWD) declared
“water condition alert.”
When Governor Edmund G Brown Jr rescinded the drought state of emergency for most of California, the District
Board of Directors voted unanimously to lift drought penalties on April 29, 2016.
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46 YORBA LINDA WATER DI STRICT
Figure 4-6: YLWD Water Conservation Stages
In the case that drought stages are activated, alternative rates would be enforced to ensure full recovery of revenue
requirements for the District. A significant portion of the water system is based on fixed costs and cannot be
recovered with significant decreases in water sales. If water use declines to a lower level, this may risk the District’s
ability to maintain financial sufficiency. For this reason, drought rates have been developed to ensure that District
operations are financially sufficient for its fixed operating and capital expenditure costs.
4.5.2. FINANCIAL IMPACTS OF DROUGHT
4.5.2.1. Estimated Lost Revenues due to Reduced Water Sales
The financial impact at each drought stage is shown in Table 4-42. Rates are developed with a projected water
usage amount during the study period. If these projections fail to materialize due to a water shortage, there will be
a significant shortfall in revenue. As can be seen in the table, as water sales decline relative to the baseline demand
(No Drought), the projected revenue loss grows. To curtail these losses during a shortage the District will need to
increase the water usage rate. As can be seen from Table 4-42, each stage calls for a larger reduction in water use,
and as a result, a larger increase in the usage rates will be necessary.
Table 4-42: FY 2022 Estimated Loss Revenues due to Reduced Water Sales by Stages
Drought Stages 0 1 2 3 4
No Drought Minimum
Shortage
Moderate
Shortage Severe Shortage Critical Shortage
Water Sales Reduction 0% 10% 20% 35% 50%
Projected Water Sales 7,380,219 ccf 6,642,197 ccf 5,904,175 ccf 4,797,142 ccf 3,690,110 ccf
Water Usage Rate $2.64 /ccf $2.64 /ccf $2.64 /ccf $2.64 /ccf $2.64 /ccf
Projected Usage Rev $19,483,778 $17,535,400 $15,587,023 $12,664,456 $9,741,889
Revenue Loss $1,948,378 $3,896,756 $6,819,322 $9,741,889
4.5.2.2. Estimated Lost Revenues due to Reduced Water Sales
When water sales are reduced, the revenue shortfall is offset to some degree as some purchased water costs for the
year are avoided. For example, in Table 4-43, the quantity of water sales (Line 1 & 2) declines, which results in a
reduction in variable water supply costs (Line 15). The cost savings at stage 1 is $1,204,892 (Line 16) compared to
the “No Drought” scenario. The “No Drought” scenario assumes normal sales for FY 2022 and normal BPP at
75% instead of the temporary reduced BPP due to PFAS.
Stage 1
•Minimum Water Shortage
•Reduce Usage by 10%
Stage 2
•Moderate Water Shortage
•Reduce Usage by 10-20%
Stage 3
•Severe Water Shortage
•Reduce Usage by 20 -35%
Stage 4
•Critical Water Shortage
•Reduce Usage more than 35%
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2021 RATE STUDY REPO RT 47
Table 4-43: FY 2022 Estimated Variable Water Supply Cost Savings Calculations
Drought Stages No Drought Stage 1 Stage 2 Stage 3 Stage 4
1 Water Sales ccf 7,380,219 6,642,197 5,904,175 4,797,142 3,690,110
2 AF 16,943 15,248 13,554 11,013 8,471
3 Water loss 8% 8% 8% 8% 8%
4 Normal BPP 75% 75% 75% 75% 75%
5 Quantity Purchased 18,416 AF 16,574 AF 14,733 AF 11,970 AF 9,208 AF
6 OCWD BPP 13,812 AF 12,431 AF 11,050 AF 8,978 AF 6,906 AF
7 MWDOC 4,604 AF 4,144 AF 3,683 AF 2,993 AF 2,302 AF
8 July – December 58.6% 2,699 AF 2,429 AF 2,159 AF 1,754 AF 1,349 AF
9 January – June 41.4% 1,905 AF 1,715 AF 1,524 AF 1,238 AF 953 AF
10 Variable Water Supply Unit
Costs
11 OCWD RA $497 /AF $497 /AF $497 /AF $497 /AF $497 /AF
12 MWD Tier 1 Treated
13 July – December $1,104 /AF $1,104 /AF $1,104 /AF $1,104 /AF $1,104 /AF
14 January - June $1,159 /AF $1,159 /AF $1,159 /AF $1,159 /AF $1,159 /AF
15 Variable Water Supply Costs
(At Stage) $12,048,915 $10,844,024 $9,639,132 $7,831,795 $6,024,458
16 Variable Water Supply Costs
(No Drought) $12,048,915 $12,048,915 $12,048,915 $12,048,915 $12,048,915
17 Water Supply Cost Savings N/A -$1,204,892 -$2,409,783 -$4,217,120 -$6,024,458
4.5.2.3. Net Financial Costs of Drought and Drought Rates
Table 4-44 combines the financial impact of drought from revenue loss in Table 4-42 and water supply cost savings
in Table 4-43 to derive drought rates for FY 2022. The net impact shown in Line 3 is then divided by the projected
water sales at each shortage to calculate the uniform incremental drought rate for the District at each Drought
Stage.
Table 4-44: FY 2022 Incremental Drought Rates on Water Usage Rates
Drought Stages 1 2 3 4
Shortage Description Minimum Shortage Moderate Shortage Severe Shortage Critical Shortage
Water Sales Reduction 10% 20% 35% 50%
1 Revenue Loss $1,948,378 $3,896,756 $6,819,322 $9,741,889
2 Water Supply Cost Savings -$1,204,892 -$2,409,783 -$4,217,120 -$6,024,458
3 Net Revenue Loss $743,486 $1,486,973 $2,602,202 $3,717,432
4 Sales subject to Drought
Cost Recovery 6,642,197 ccf 5,904,175 ccf 4,797,142 ccf 3,690,110 ccf
5 Uniform Incremental
Drought Rates $0.12 /ccf $0.26 /ccf $0.55 /ccf $1.01 /ccf
4.5.3. PROPOSED 5-YEAR DROUGHT RATES
The proposed five-year drought rates are shown in Table 4-45. The process shown in Table 4-42 through
Table 4-44 is repeated for each fiscal year of the rate setting period. As the shortage increases, the incremental costs
will increase to recover the revenue loss. The drought rates shown are calculated assuming the proposed water rates
in this Study are implemented in each fiscal year as planned.
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48 YORBA LINDA WATER DI STRICT
Table 4-45: Proposed 5-year Incremental Drought Rates
Drought Stages Sales
Reduction Drought Rates ($/ccf)
Water Usage Rates (No Shortage) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
$2.64 /ccf $2.88 /ccf $3.14 /ccf $3.43 /ccf $3.74 /ccf
% Increase 9% 9% 9% 9%
No Drought No Shortage 0% $0.00 /ccf $0.00 /ccf $0.00 /ccf $0.00 /ccf $0.00 /ccf
Stage 1 Minimum Shortage 10% $0.12 /ccf $0.14 /ccf $0.16 /ccf $0.18 /ccf $0.20 /ccf
Stage 2 Moderate Shortage 20% $0.26 /ccf $0.29 /ccf $0.32 /ccf $0.35 /ccf $0.39 /ccf
Stage 3 Severe Shortage 35% $0.55 /ccf $0.60 /ccf $0.66 /ccf $0.73 /ccf $0.80 /ccf
Stage 4 Critical Shortage 50% $1.01 /ccf $1.11 /ccf $1.22 /ccf $1.34 /ccf $1.47 /ccf
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5. Sewer Financial Plan and
Rates
5.1. Sewer Financial Plan
The financial plan provides long-term financial projections for the Sewer Fund based on projected revenues, O&M
expenses, wastewater CIP, and debt service payments. The financial plan includes a cashflow summary and the
rate revenue requirement, the latter being the key factor driving rate development. The long-term financial plan
timeframe spans FY 2021 through FY 2029.
5.1.1. CURRENT SEWER REVENUES
The current District wastewater rates and rate structure were effective as of July 1, 2020. Table 5-1 shows the
current monthly charge for each customer class along with the commercial usage charge. Single-family residential
(SFR) pays a fixed monthly charge while master metered accounts pay a fixed charge per dwelling unit ($/DU).
Commercial customers are assessed a fixed charge per account ($/account) that covers flows up to 7 ccf and a
sewer flow charge assessed on a 90% return factor9. The current rates in Table 5-1 are multiplied by the respective
units of service in Table 5-2 to calculate the total wastewater rate revenues in Table 5-3. Note that charges assessed
per account or dwelling unit are multiplied by 12 months (number of billing periods per year) to estimate the
respective revenues. For example, in FY 2021 the number of accounts are multiplied by their respective service
charge, and multiplied by 12, to yield the service charge revenue for the year of $2,565,105. Usage quantity is listed
as the annual amounts so multiplication by billing periods is not necessary. These current wastewater rate revenues
are listed in the top line of Table 5-3, with non-rate revenues listed below. The non-rate revenues are projected
based on inflationary assumptions from Table 2-1.
Table 5-1: Current District Sewer Rates
Effective July 1, 2020
Sewer Monthly Service Charge
Residential $8.10
Master Metered ($/DU) $7.62
Commercial $8.10
Commercial Sewer Usage Rates ($/ccf)
Tier 1 (0 – 7 ccf) $0.00
Tier 2 (8+ ccf) $0.52
9 A return to sewer factor means that 90% of water use is assumed to enter the sewer collection system.
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50 YORBA LINDA WATER DI STRICT
Table 5-2: Projected Sewer Revenues from Current Rates
Sewer Revenues Current
Rate FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 –
FY 2028
Sewer Monthly
Service Charge
Residential $8.10 24,305 24,313 24,324 24,345 24,366 24,383
Master Metered
(per DU) $7.62 1,553 1,557 1,557 1,557 1,557 1,557
Commercial $8.10 624 625 625 625 625 625
Commercial Usage
Rates ($/ccf)
Tier 1 (0-7 ccf) $0.00 4,715 4,715 4,715 4,715 4,715 4,715
Tier 2 (8+ ccf) $0.52 250,773 250,773 250,773 250,773 250,773 250,773
Projected Revenues
Sewer Monthly
Service Charge $2,565,105 $2,566,346 $2,567,415 $2,569,456 $2,571,497 $2,573,150
Commercial Usage
Rates $130,402 $130,402 $130,402 $130,402 $130,402 $130,402
Current Sewer
Rate Revenues $2,695,507 $2,696,748 $2,697,817 $2,699,858 $2,701,899 $2,703,552
Table 5-3: Projected Current Sewer Revenues
5.1.2. SEWER O&M EXPENSES
Table 5-4 lists the projected wastewater O&M expenses for the study period. The FY 2021 budgeted O&M
expenses are escalated based on the inflationary assumptions in Table 2-1.
Table 5-4: Projected Sewer O&M Expenses
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 SEWER REVENUES
2 OPERATING REVENUES
3 Revenues from Current Rates $2,695,507 $2,695,507 $2,696,748 $2,697,817 $2,699,858 $2,701,899 $2,703,552 $2,703,552
4 Proposed Rev Adjustments $0 $404,326 $869,701 $1,405,225 $2,022,211 $2,189,137 $2,361,767 $2,539,053
5 Other Operating Rev $40,545 $40,950 $41,360 $41,774 $42,191 $42,613 $43,039 $43,470
6 SUBTOTAL OPERATING REVENUES $2,736,052 $3,140,784 $3,607,809 $4,144,816 $4,764,260 $4,933,649 $5,108,358 $5,286,074
7 NON-OPERATING REVENUES
8 Property Tax $0 $0 $0 $0 $0 $0 $0 $0
9 Investment Income $50,000 $47,536 $40,878 $39,081 $43,640 $49,668 $54,779 $58,808
10 Other Non-Oper Rev $19,200 $19,392 $19,586 $19,782 $19,980 $20,179 $20,381 $20,585
11 SUBTOTAL NON-OPERATING REVENUES $69,200 $66,928 $60,464 $58,862 $63,620 $69,848 $75,161 $79,393
12 TOTAL SEWER REVENUES $2,805,252 $3,207,712 $3,668,273 $4,203,678 $4,827,880 $5,003,497 $5,183,518 $5,365,467
Sewer O&M Expenses Summary FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Salary Related Expenses $1,738,874 $1,877,984 $2,028,223 $2,190,480 $2,365,719 $2,554,976 $2,759,375 $2,980,124
UAL Funding OPEB / Pension $0 $163,099 $163,099 $163,099 $163,099 $163,099 $163,099 $163,099
Supplies and Services $1,323,233 $982,065 $1,002,617 $1,023,626 $1,045,102 $1,067,059 $1,089,507 $1,112,459
Other Non-Operating Expenses $32,895 $33,553 $34,224 $34,908 $35,607 $36,319 $37,045 $37,786
Total Sewer O&M Expenses $3,095,002 $3,056,701 $3,228,163 $3,412,114 $3,609,527 $3,821,453 $4,049,026 $4,293,469
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2021 RATE STUDY REPO RT 51
5.1.3. SEWER CIP FUNDING
The District provided Raftelis the annual sewer CIP expenses that are incorporated into the financial plan. The
annual expenses are shown in Figure 5-1. Raftelis escalates the yearly expenses by 3% per year to account for
projected construction cost inflation. Wastewater operations will generate enough revenue to finance the projected
CIP entirely through cash funded/PAYGO (green bars).
Figure 5-1: Projected Annual Sewer CIP Funding
5.1.4. SEWER DEBT SERVICE
5.1.4.1. Net Financial Costs of Drought and Drought Rates
The District currently has no outstanding debt for the Sewer Fund.
5.1.5. STATUS QUO SEWER FINANCIAL PLAN
Table 5-5 summarizes the status quo wastewater financial plan without revenue increases. The cash flow
incorporates the revenues from current rates and non-rate revenues (Table 5-3), O&M expenses (Table 5-4), and
capital improvement projects to project the ending balances. All projections shown in the table are based upon the
District’s current rate structure and do not include rate adjustments.
Under the “status-quo” financial plan scenario, the District will generate negative cashflow every year of the study
period. Revenues generated from rates and other miscellaneous revenues will be inadequate to sufficiently recover
operating expenses, capital expenditures, and to maintain adequate reserves starting in FY 2022.
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52 YORBA LINDA WATER DI STRICT
Table 5-5: Status Quo Sewer Financial Plan
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 SEWER REVENUES
2 OPERATING REVENUES
3 Revenues from Current Rates $2,695,507 $2,695,507 $2,696,748 $2,697,817 $2,699,858 $2,701,899 $2,703,552 $2,703,552
4 Proposed Rev Adjustments $0 $0 $0 $0 $0 $0 $0 $0
5 Other Operating Rev $40,545 $40,950 $41,360 $41,774 $42,191 $42,613 $43,039 $43,470
6 SUBTOTAL OPERATING REVENUES $2,736,052 $2,736,458 $2,738,108 $2,739,590 $2,742,049 $2,744,512 $2,746,591 $2,747,021
7 NON-OPERATING REVENUES
8 Property Tax $0 $0 $0 $0 $0 $0 $0 $0
9 Investment Income $50,000 $45,504 $32,424 $19,109 $6,245 -$9,265 -$27,615 -$49,042
10 Other Non-Oper Rev $19,200 $19,392 $19,586 $19,782 $19,980 $20,179 $20,381 $20,585
11 SUBTOTAL NON-OPERATING REVENUES $69,200 $64,896 $52,010 $38,891 $26,225 $10,914 -$7,234 -$28,457
12 TOTAL SEWER REVENUES $2,805,252 $2,801,354 $2,790,117 $2,778,482 $2,768,274 $2,755,427 $2,739,357 $2,718,564
13
14 SEWER EXPENSES
15 Salary Related Expenses $1,738,874 $1,877,984 $2,028,223 $2,190,480 $2,365,719 $2,554,976 $2,759,375 $2,980,124
16 UAL Funding OPEB / Pension $0 $163,099 $163,099 $163,099 $163,099 $163,099 $163,099 $163,099
17 Supplies and Services $1,323,233 $982,065 $1,002,617 $1,023,626 $1,045,102 $1,067,059 $1,089,507 $1,112,459
18 Other Non-Operating Expenses $32,895 $33,553 $34,224 $34,908 $35,607 $36,319 $37,045 $37,786
19 TOTAL SEWER EXPENSES $3,095,002 $3,056,701 $3,228,163 $3,412,114 $3,609,527 $3,821,453 $4,049,026 $4,293,469
20 NET REVENUES -$289,750 -$255,347 -$438,045 -$633,632 -$841,253 -$1,066,026 -$1,309,669 -$1,574,905
21
22 SEWER DEBT SERVICE
23 Current Debt Service $0 $0 $0 $0 $0 $0 $0 $0
24 Proposed Debt Service $0 $0 $0 $0 $0 $0 $0 $0
25 TOTAL SEWER DEBT SERVICE $0 $0 $0 $0 $0 $0 $0 $0
26 SEWER CAPITAL EXPENDITURES
27 PAYGO $737,000 $872,410 $1,050,291 $540,900 $557,127 $637,601 $656,729 $744,074
28 New Debt Funded $0 $0 $0 $0 $0 $0 $0 $0
29 TOTAL SEWER CAPITAL EXPENDITURES $737,000 $872,410 $1,050,291 $540,900 $557,127 $637,601 $656,729 $744,074
30 NET CASH CHANGES -$1,026,750 -$1,127,757 -$1,488,336 -$1,174,532 -$1,398,380 -$1,703,627 -$1,966,397 -$2,318,978
31 BEGINNING UNRESTRICTED BALANCES $6,141,057 $5,114,307 $3,986,550 $2,498,213 $1,323,682 -$74,698 -$1,778,325 -$3,744,723
32 ENDING UNRESTRICTED BALANCES $5,114,307 $3,986,550 $2,498,213 $1,323,682 -$74,698 -$1,778,325 -$3,744,723 -$6,063,701
33 TARGET BALANCES $4,552,336 $4,678,302 $4,898,461 $4,434,427 $4,499,332 $4,632,061 $4,707,303 $4,854,922
34 Operations 90 days $763,151 $753,707 $795,985 $841,343 $890,020 $942,276 $998,390 $1,058,664
35 Capital 100%$737,000 $872,410 $1,050,291 $540,900 $557,127 $637,601 $656,729 $744,074
36 Emergency 5%$3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205
37 Employee Liability $45,980 $45,980 $45,980 $45,980 $45,980 $45,980 $45,980 $45,980 $45,980
1 Debt Coverage (excl. LOC)#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A
2 Min Debt Coverage 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x
3 Policy Debt Coverage 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x
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2021 RATE STUDY REPO RT 53
The top right graph in Figure 5-2 shows the operating financial plan represented in Table 5-5 with no revenue
adjustments (top left graph). District costs are represented by the stacked bars. Note that there is no current wastewater
debt service. The District would use reserves to fund revenue shortfalls, as shown by the red bars below the x-axis. The
capital improvement plan is shown in the bottom left. The bottom right graph illustrates that the ending fund balance
goes negative by FY 2025, failing to meet target balances starting in FY 2022.
Figure 5-2: Status Quo Sewer Financial Plan
5.1.6. PROPOSED SEWER FINANCIAL PLAN
Raftelis developed a long-term financial plan model incorporating the known and forecasted cost increases for
operating and capital expenditures. The results were presented to and discussed with the District Board of
Directors. The proposed revenue adjustments for the Sewer Fund are sh own in Table 5-6.
Table 5-6: Proposed Sewer Revenue Adjustments
Fiscal Year Effective Sewer
2022 July 15%
2023 July 15%
2024 July 15%
2025 July 15%
2026 July 3.5%
2027 July 3.5%
2028 July 3.5%
These revenue adjustments are incorporated into Raftelis’ recommended financial plan. Under this proposed
financial plan scenario, the District’s projected cashflow is positive in all future years of the study period. Equally
critical, ending reserve balances will be near or above target in each year.
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54 YORBA LINDA WATER DI STRICT
The top right graph in Figure 5-3 shows the operating financial plan represented in Table 5-7. District costs are
represented by the stacked bars. The District uses reserves to fund the modest shortfall in FY 2021, as shown by the
red bars below the x-axis in that year. The capital improvement plan is shown in the bottom left and is projected to
be fully funded as PAYGO. As indicated in the bottom right graph of Figure 5-3, ending reserve balances remain
positive and, on average, close to or above the target.
Figure 5-3: Proposed Sewer Financial Plan
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2021 RATE STUDY REPO RT 55
Table 5-7: Proposed Sewer Financial Plan
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 SEWER REVENUES
2 OPERATING REVENUES
3 Revenues from Current Rates $2,695,507 $2,695,507 $2,696,748 $2,697,817 $2,699,858 $2,701,899 $2,703,552 $2,703,552
4 Proposed Rev Adjustments $0 $404,326 $869,701 $1,405,225 $2,022,211 $2,189,137 $2,361,767 $2,539,053
5 Other Operating Rev $40,545 $40,950 $41,360 $41,774 $42,191 $42,613 $43,039 $43,470
6 SUBTOTAL OPERATING REVENUES $2,736,052 $3,140,784 $3,607,809 $4,144,816 $4,764,260 $4,933,649 $5,108,358 $5,286,074
7 NON-OPERATING REVENUES
8 Property Tax $0 $0 $0 $0 $0 $0 $0 $0
9 Investment Income $50,000 $47,536 $40,878 $39,081 $43,640 $49,668 $54,779 $58,808
10 Other Non-Oper Rev $19,200 $19,392 $19,586 $19,782 $19,980 $20,179 $20,381 $20,585
11 SUBTOTAL NON-OPERATING REVENUES $69,200 $66,928 $60,464 $58,862 $63,620 $69,848 $75,161 $79,393
12 TOTAL SEWER REVENUES $2,805,252 $3,207,712 $3,668,273 $4,203,678 $4,827,880 $5,003,497 $5,183,518 $5,365,467
13
14 SEWER EXPENSES
15 Salary Related Expenses $1,738,874 $1,877,984 $2,028,223 $2,190,480 $2,365,719 $2,554,976 $2,759,375 $2,980,124
16 UAL Funding OPEB / Pension $0 $163,099 $163,099 $163,099 $163,099 $163,099 $163,099 $163,099
17 Supplies and Services $1,323,233 $982,065 $1,002,617 $1,023,626 $1,045,102 $1,067,059 $1,089,507 $1,112,459
18 Other Non-Operating Expenses $32,895 $33,553 $34,224 $34,908 $35,607 $36,319 $37,045 $37,786
19 TOTAL SEWER EXPENSES $3,095,002 $3,056,701 $3,228,163 $3,412,114 $3,609,527 $3,821,453 $4,049,026 $4,293,469
20 NET REVENUES -$289,750 $151,011 $440,110 $791,564 $1,218,353 $1,182,044 $1,134,493 $1,071,998
21
22 SEWER DEBT SERVICE
23 Current Debt Service $0 $0 $0 $0 $0 $0 $0 $0
24 Proposed Debt Service $0 $0 $0 $0 $0 $0 $0 $0
25 TOTAL SEWER DEBT SERVICE $0 $0 $0 $0 $0 $0 $0 $0
26 SEWER CAPITAL EXPENDITURES
27 PAYGO $737,000 $872,410 $1,050,291 $540,900 $557,127 $637,601 $656,729 $744,074
28 New Debt Funded $0 $0 $0 $0 $0 $0 $0 $0
29 TOTAL SEWER CAPITAL EXPENDITURES $737,000 $872,410 $1,050,291 $540,900 $557,127 $637,601 $656,729 $744,074
30 NET CASH CHANGES -$1,026,750 -$721,399 -$610,181 $250,665 $661,226 $544,443 $477,764 $327,924
31 BEGINNING UNRESTRICTED BALANCES $6,141,057 $5,114,307 $4,392,908 $3,782,727 $4,033,391 $4,694,617 $5,239,061 $5,716,824
32 ENDING UNRESTRICTED BALANCES $5,114,307 $4,392,908 $3,782,727 $4,033,391 $4,694,617 $5,239,061 $5,716,824 $6,044,749
33 TARGET BALANCES $4,552,336 $4,678,302 $4,898,461 $4,434,427 $4,499,332 $4,632,061 $4,707,303 $4,854,922
34 Operations 90 days $763,151 $753,707 $795,985 $841,343 $890,020 $942,276 $998,390 $1,058,664
35 Capital 100%$737,000 $872,410 $1,050,291 $540,900 $557,127 $637,601 $656,729 $744,074
36 Emergency 5%$3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205 $3,006,205
37 Employee Liability $45,980 $45,980 $45,980 $45,980 $45,980 $45,980 $45,980 $45,980 $45,980
1 Debt Coverage (excl. LOC)#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A
2 Min Debt Coverage 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x 1.25x
3 Policy Debt Coverage 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x 2.25x
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5.2. Sewer Cost of Service Analysis
This section discusses the allocation of O&M expenses and capital costs to sewer functions, cost components, the
determination of unit costs, and rate calculation by customer class. The proposed Sewer utility costs of service are
developed consistent with guidelines detailed in the Water Environment Federation’s (WEF) Manual of Practice No.
27, Financing and Charges for Sewer Systems.
The sewer cost-of-service analysis consists of 4 major steps, as outlined below:
1. Functionalize O&M and capital costs into functions: pumping (lift), collection, billing, customer
service, and general & administration
2. Determine revenue requirements and allocate the revenue requirements in each function to cost
components: flow, billing and customer service, and general
3. Calculate the unit cost of service by dividing the total cost of each cost component in Step 2 by units of
service
4. Calculate the sewer rates by customer class using unit cost of service and corresponding respective
service level
5.2.1. DETERMINE UNITS OF SERVICE
The next step is to determine the units of service for each cost component. The units of service by cost component
and by class is shown in Table 5-8. The number of dwelling units presented under “# of Units”, total annual bills
under “# of bills”, and the last three right columns describe the annual flow. For the residential class, estimated
annual flows in ccf (2,041,620) are calculated through multiple steps. Gallons per capita per day (gpcd) flow (55) is
multiplied by the average household size (3.06), which is then converted to ccf/month (multiplied by
365/12/748.05). This results in the sewer flow per month of approximately 7 ccf , which is then multiplied by the
number of dwelling units (24,305). This is then converted to an annual basis by multiplying by 12 billing periods.
An identical calculation is performed for the master metered class assuming a slightly smaller average household
size. For the commercial class, the previous annual usage is projected to remain flat. The usage summed is utilized
for the Units of Service with the base flow being tier 1 usage and “extra sewer flow” being the tier 2 usage. This is
in addition to the fixed charge based on # of bills.
Table 5-8: Sewer Units of Service
Estimated
Sewer Flows GPCD10 Household
Size
Est. sewer
flow per
month
# of
Units # of bills
Est. base
sewer
flow (ccf)
Extra sewer
flow (ccf)
Total
sewer
flow (ccf)
Residential 55 3.06 7 ccf 24,305 291,660 2,041,620 2,041,620
Master
Metered 55 2.50 6 ccf 1,553 18,636 111,816 111,816
Commercial 7 ccf 624 7,488 4,715 250,773 255,488
Total 26,482 317,784 2,158,151 250,773 2,408,924
5.2.2. FUNCTIONALIZE AND ALLOCATE O&M AND CAPITAL COSTS
Raftelis functionalized the Sewer Fund’s O&M expenses and asset database for the O&M and capital cost
allocations, respectively. Raftelis reviewed sewer O&M expenses line by line to determine the most appropriate
10 Gallons per capita per day assumes indoor use of 55 gallons per capita per day, consistent with State water efficiency
standards for residential indoor water use (SB x7-7).
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2021 RATE STUDY REPO RT 57
system function. Table 5-9 and Table 5-10 summarize the functionalized O&M costs for the Sewer Fund for
FY 2021, the test year.
Table 5-9: Functionalization of O&M Costs
FY 2021 Pumping Collection Gen &
Admin Billing Customer
Service
Salary Related Expenses $1,738,874 50.0% 0.0% 40.0% 10.0%
UAL Funding OPEB /
Pension $0 50.0% 0.0% 40.0% 10.0%
Supplies and Services
Board election $6,335 100.0%
Communications $37,134 100.0%
Contractual services $66,878 100.0%
Data processing $41,457 100.0%
District activities $6,941 100.0%
Dues and memberships $15,075 100.0%
Fees and permits $160,565 100.0%
Insurance $50,708 100.0%
Maintenance $180,820 100.0%
Materials $75,800 100.0%
Noncapital equipment $48,691 100.0%
Office expense $5,572 100.0%
Professional services $482,272 100.0%
Training $14,832 100.0%
Travel and conferences $5,630 100.0%
Uncollectible accounts $1,470 100.0%
Utilities $28,913 100.0%
Vehicle expense $94,140 100.0%
Other Non-Operating
Expenses $32,895 100.0%
Total Sewer O&M
Expenses $3,095,002 $0 $1,154,970 $1,027,668 $697,020 $215,344
The fixed asset database was provided and functionalized by District staff. Raftelis calculated the asset replacement
cost valued as Replacement Cost Less Depreciation (RCLD).
Table 5-10: Functionalization of Sewer Assets
Asset Class RCLD Pumping Collection Gen &
Admin Billing Customer
Service
2-1500 Pumping Plant $216,222 100.0%
2-1520 Transmission and Distrib. Plant $0 100.0%
2-1850 Transmission and Distrib. Plant $55,511,012 100.0%
2-1960 Transmission and Distrib. Plant $3,748,048 100.0%
2-2120 General Plant $0 100.0%
2-2200 General Plant $648,809 100.0%
Total Sewer Asset Values $60,124,091 $216,222 $59,259,060 $648,809 $0 $0
Each of the wastewater functions were allocated to the following cost components: flow, billing and customer
service, and general based on District data. This is presented in Table 5-11.
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58 YORBA LINDA WATER DI STRICT
Table 5-11: Allocations of Sewer Functions to Cost Components
Functions Flow Billing & CS General
Pumping 100.0%
Collection 100.0%
Gen & Admin 100.0%
Billing 100.0%
Customer Service 100.0%
Table 5-12 uses the allocation factors from Table 5-11 to allocate all costs to the cost components.
Table 5-12: Allocations of Functionalized O&M Expenses to Cost Components
Functions FY 2021 Flow Billing & CS General
Pumping $0 100.0% 0.0% 0.0%
Collection $1,154,970 100.0% 0.0% 0.0%
Gen & Admin $1,027,668 0.0% 0.0% 100.0%
Billing $697,020 0.0% 100.0% 0.0%
Customer Service $215,344 0.0% 100.0% 0.0%
Total Sewer O&M Expenses $3,095,002 $1,154,970 $912,364 $1,027,668
Total Allocation % 100% 37.3% 29.5% 33.2%
Table 5-13 uses the allocation factors in Table 5-11 and asset values in Table 5-10 to allocate capital costs to the cost
components.
Table 5-13: Allocations of Functionalized Sewer Assets to Cost Components
Functions Asset Value by
RCLD Flow Billing & CS General
Pumping $216,222 100.0% 0.0% 0.0%
Collection $59,259,060 100.0% 0.0% 0.0%
Gen & Admin $648,809 0.0% 0.0% 100.0%
Billing $0 0.0% 100.0% 0.0%
Customer Service $0 0.0% 100.0% 0.0%
Total Sewer O&M Expenses $60,124,091 $59,475,282 $0 $648,809
Total Allocation % 100% 98.9% 0% 1.1%
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2021 RATE STUDY REPO RT 59
5.2.3. DETERMINE REVENUE REQUIREMENT AND ALLOCATE REVENUE
REQUIREMENT TO COST COMPONENTS
The revenue requirement is the amount of annual revenue the utility must generate to meet its estimated annual
operating expenses, capital expenses, and reserve funding. Note that determining the revenue requirement is the
first step shown in the Water System cost-of-service analysis, but the fifth step shown in the Sewer System cost-of-
service analysis. The process, however, is the same. The net revenue requirement from current District rates is
shown in Table 5-14, line 13. Non-rate revenues (i.e., revenue offsets) on line 12, are subtracted from the revenue
requirement to determine the net revenue requirement from current District rates in line 13, which is the same
value as current rate revenue in Table 5-3, line 3.
Table 5-14: FY 2021 Sewer Revenue Requirement from Current District Rates
Current Revenue Requirements FY 2021 Allocation Factors
1 REVENUE REQUIREMENTS
2 O&M Expenses $3,095,002 O&M
3 Debt Service $0 Capital
4 Rate Funded CIP $737,000 Capital
5 Reserve Funding w/o Revenue Adjustment ($1,026,750) Capital
6 SUBTOTAL REVENUE REQUIREMENTS $2,805,252
7 OTHER REVENUES OFFSETS
8 Other Operating Revenue $40,545 Capital
9 Property Tax $0 Capital
10 Investment Income $50,000 Capital
11 Other Non-Operating Revenue $19,200 Capital
12 SUBTOTAL OTHER REVENUES OFFSETS $109,745
13
NET REVENUE REQUIREMENTS FROM
CURRENT RATES
(Without Revenue Adjustment)
$2,695,507
Table 5-15 allocates the revenue requirement in Table 5-14 to the wastewater cost components using the allocation
percentages in Table 5-11.
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60 YORBA LINDA WATER DI STRICT
Table 5-15: FY 2021 Revenue Requirement Allocation to Cost Components
Current Rev Requirements FY 2021 Flow Billing &
CS General
Revenue Requirements
O&M Expenses $3,095,002 $1,154,970 $912,364 $1,027,668
Debt Service $0 $0 $0 $0
Rate Funded CIP $737,000 $729,047 $0 $7,953
Reserve Funding w/o Revenue
Adjustment ($1,026,750) ($1,015,670) $0 ($11,080)
Subtotal Revenue Requirements $2,805,252 $868,347 $912,364 $1,024,541
Less Other Revenue Offset
Other Operating Revenue $40,545 $40,107 $0 $438
Property Tax $0 $0 $0 $0
Investment Income $50,000 $49,460 $0 $540
Other Non-Operating Revenue $19,200 $18,993 $0 $207
Subtotal Other Revenue Offset $109,745 $108,561 $0 $1,184
Net Revenue Requirement (Excluding
Revenue Adjustments) $2,695,507 $759,786 $912,364 $1,023,357
5.2.4. CALCULATE SEWER UNIT COST OF SERVICE
The allocated net revenue requirements of each cost component from Table 5-15 are listed in line 1 of Table 5-16.
These are divided by the appropriate units of service in line 2 to arrive at the unit cost of service in line 4.
Table 5-16: Calculations of Sewer Unit Cost of Service
Unit Cost Calculations Flow Billing & CS General
A B C
1 Revenue Requirements
(Table 5-15) $759,786 $912,364 $1,023,357
2 Units of Service
(Table 5-8) 2,408,924 317,784 317,784
3 Units Ccf / year bills bills
4 Unit Cost of Service ([1] / [2]) $0.32 $2.87 $3.22
5.2.5. CALCULATE SEWER COST BY CUSTOMER CLASS
The unit costs of service from Table 5-16 are presented in line 1 of Table 5-17. The units of service in columns A
through D are broken out by customer class. These values are from Table 5-8. Each customer class’ units of service
(line 4) is multiplied by the respective unit cost of service (line 1) to arrive at the customer class revenue
requirements in lines 5, 8 and 11. The total revenue requirement by class in column D is used to calculate rates in
the next section.
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2021 RATE STUDY REPO RT 61
Table 5-17: Allocation of Sewer Revenue Requirements to Customer Classes
Flow Billing & CS General Total
A B C D
1 Unit Cost of Service $0.32 $2.87 $3.22
2 per ccf per bill per bill
3 Residential (7 ccf)
4 Units of Service 2,041,620 291,660 291,660 291,660
5 Residential Rev Requirements $643,937 $837,361 $939,230 $2,420,528
6 Master Metered (6 ccf)
7 Units of Service 111,816 18,636 18,636 18,636
8 Master Metered Rev
Requirements $35,267 $53,504 $60,013 $148,785
9 Commercial (7 ccf)
10 Units of Service 255,488 7,488 7,488
11 Commercial Rev
Requirements $80,582 $21,498 $24,114 $126,194
5.3. Sewer Rate Development
5.3.1. PROPOSED RATES
The proposed rate derivation for each customer class is shown in Table 5-18 through Table 5-20. Each table
calculates rates by dividing the FY 2021 customer class revenue requirement in Table 5-17 by the respective unit of
service to arrive at a service charge for SFR and Master Metered customers and a flow rate and service charge for
commercial customers. Service charge calculations for SFR are as follows:
𝐹𝑙𝑟 𝑅𝐹𝑅:[7 x $.315] (Column A) + $2.87 (Column B) + $3.22 (Column C) = $8.30
Table 5-18: Revised COS Single-Family Residential Rates for FY 2021
FY 2021 Residential Notes
1 Revenue Requirements before Revenue
Adjustment $2,420,528 From Table 5-17
2 Units of Service (monthly bills) 291,660 From Table 5-17
3 Monthly Bill $8.30 [1]/[2], rounded up to the nearest cent
The Master Metered rates have been modified to account for the average number of people per household. The
proposed Master Metered residential rate is lower than the SFR rate due to the lower household density for Master
Metered customers. Smaller households generate less wastewater flow on average, which allocates less costs to
Master Metered, resulting in a lower rate.
Table 5-19: Revised COS Master Metered Rate for FY 2021
FY 2021 Master Metered Notes
1 Revenue Requirements before Revenue
Adjustment $148,785 From Table 5-17
2 Units of Service (monthly bills) 18,636 Table 5-17
3 Monthly Bill $7.99 [1]/[2], rounded up to the nearest cent
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62 YORBA LINDA WATER DI STRICT
The Commercial service charge is the same as SFR as the same base flow (7 ccf) is assumed for the monthly
charge. Due to the anticipated higher usage from Commercial accounts, there is a usage charge above 7 ccf per
billing period. Table 5-20 shows the breakdown of the monthly service charge as well as the usage tiers for
Commercial accounts.
Table 5-20: Proposed Commercial Sewer Rate for FY 2021
Commercial FY 2021
Billing & CS $2.87
General $3.22
Base Flow Charges $2.2111
Commercial Monthly Sewer Service Charges $8.30
Commercial Flow Rate
Tier 1 (0-7 ccf) $0.00 (included in Service Charge)
Tier 2 (8+ ccf) $0.32 per ccf
After accounting for the proposed revenue adjustments in Table 5-6, the final FY 2022 through FY 2026 rates are
presented in Table 5-21.
Table 5-21: 5-year Proposed Sewer Rates
Current
Revised
COS
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Effective Date 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025
Proposed Rev Adjustments 15% 15% 15% 15% 3.5%
Monthly Sewer Service Charges
Residential $8.10 $8.30 $9.55 $10.99 $12.64 $14.54 $15.05
Master Metered $7.62 $7.99 $9.19 $10.57 $12.16 $13.99 $14.48
Commercial $8.10 $8.30 $9.55 $10.99 $12.64 $14.54 $15.05
Commercial Sewer Usage Rates ($/ccf)
Tier 1 (0-7 ccf) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Tier 2 (8+ ccf) $0.52 $0.32 $0.37 $0.43 $0.50 $0.58 $0.61
5.4. Sewer Customer Impact Analysis
Table 5-22 shows the impact on each customer class revenue once adjustments are made. The Commercial class
faces a significant drop due to the reduction in flow rates. Monthly customer bill impacts for sewer service is shown
in Table 5-23. Commercial bills impacts assume accounts use no more than 7 ccf per billing period.
Table 5-22: Revised COS Sewer Customer Impacts
FY 2021 Current Revenues Revised COS Revenues Impact %
Residential $2,362,446 $2,420,528 2.46%
Master Metered $142,006 $148,785 4.77%
Commercial $191,055 $126,194 -33.95%
Total $2,695,507 $2,695,507 0.00%
11 $0.32 / ccf x 7 ccf = $2.21
Page 80 of 172
2021 RATE STUDY REPO RT 63
Table 5-23: Impacts from Proposed Sewer Rates
Monthly Rate Impacts Jul 1, 2021 Jul 1, 2022 Jul 1, 2023 Jul 1, 2024 Jul 1, 2025
Residential $1.45 $1.44 $1.65 $1.90 $0.51
Master Metered $1.57 $1.38 $1.59 $1.83 $0.49
Commercial $1.45 $1.44 $1.65 $1.90 $0.51
Commercial Use Rate ($/ccf) ($0.15) $0.11 $0.18 $0.21 $0.18
Page 81 of 172
Resolution No. 2021-XX of Establishing New Schedules of Water Rates and Charges Effective July 1, 2021 1
RESOLUTION NO. 2021-XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ESTABLISHING NEW SCHEDULES OF WATER RATES
AND CHARGES EFFECTIVE JULY 1, 2021 AND
RESCINDING RESOLUTION NO. 2020-18
WHEREAS, pursuant to California Water Code Section 31007, the Board of Directors of
the Yorba Linda Water District (“YLWD”) is required to establish water rates
at a level which will yield an amount of revenue sufficient to pay for operating
expenses, provide for repairs and depreciation of works, and pay the
principal and interest on any bonded debt.
WHEREAS, Section 5470 et seq. of the California Health and Safety Code authorizes
YLWD to establish rates and charges regarding water and to collect those
rates and charges on the County of Orange property tax roll.
WHEREAS, pursuant to California Government Code Section 53756, YLWD may adopt
a schedule of fees or charges authorizing automatic adjustments that
passthrough increases in wholesale charges for water.
WHEREAS, the District Board of Directors previously adopted Resolution No. 2020 -18,
which established water rates effective February 1, 2021.
WHEREAS, At the Board of Directors meeting on April 13, 2021, the Board of Directors
considered, received and filed the 2021 Water and Sewer Rate Study
Report (“2021 Rate Study”), including schedules of water rate increases
described in the Rate Study.
WHEREAS, pursuant to, and in compliance with, Proposition 218 (California Constitution
art. XIII D), the District on April 22, 2021 mailed a notice of its public hearing
to consider pass-through charges and new five-year schedules of water
(and sewer rate) increases (“Prop 218 Notice”) to all YLWD customers and
parcel owners within the District’s service area; and
WHEREAS, o n June 8, 2021, and in accordance with article XIII D, Section 6, the Board
of Directors held a public hearing regarding its Prop 218 Notice and
considered timely written and oral protests, if any, to the Prop 218 Notice.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba Linda
Water District does hereby find, determine, and resolve the following:
Section 1. The matters set forth in the foregoing recitals are true and correct .
Section 2. Resolution No. 2020-18 is hereby rescinded effective July 1, 2021.
Section 3. Timely written protests, if any, against the proposed new schedules of water
rates and charges in the Prop 218 Notice were not presented by a majority
of parcel owners.
Page 82 of 172
Resolution No. 2021-XX of Establishing New Schedules of Water Rates and Charges Effective July 1, 2021 2
Section 4. The Board of Directors reviewed the record for this matter, which includes
the 2021 Rate Study and the analysis of expenses and revenues set forth
therein. Based on that review, the Board of Directors finds and determines
that the record supports the following:
A. Revenues derived from the rates and charges will not exceed the
revenues required to provide the property related service; and
B. Revenues derived from the rates and charges will not be used for
any purpose other than that for which the rates or charges are
imposed; and
C. The amount of a rate or charge imposed upon any parcel or customer
as an incident of property ownership or service connection does not
exceed the proportional cost of service attributable to the
parcel/service connection.
D. No rate or charge will be imposed for a service unless that service is
actually used by, or immediately available to, the owner of the
property or service connection in question.
E. No rate or charge will be imposed for general government services
including, but not limited to, police, fire, ambulance or library
services, where the service is available to the public at large in
substantially the same manner as it is to property owners or
customers on record.
Section 5. The Board of Directors hereby determines that no rate or charge will be
imposed for a service unless that service is actually used by, or immediately
available to, the owner of the property in question.
Section 6. The District water rates and charges for water service are established as
follows and will take effect on July 1, 2021:
For All Potable Water Service:
All Water Usage shall be charged at $ 2.64 / 100 Cu. Ft.
Monthly Service Charge for:
5/8” and 3/4” Meters $ 27.65
1” Meters $ 43.13
1 1/2” Meters $ 81.80
2” Meters $ 128.21
3” Meters $ 275.19
4” Meters $ 491.77
6” Meters $ 1,242.10
Page 83 of 172
Resolution No. 2021-XX of Establishing New Schedules of Water Rates and Charges Effective July 1, 2021 3
Monthly Private Fire Protection Charge for:
4” Meters $ $ 7.85
6” Meters $ $ 20.57
8” Meters $ $ 42.54
10” Meters $ $ 75.56
Annual Capital (Finance) Charge for:
5/8” and 3/4” Meters $ 68.04
1” Meters $ 113.52
1 1/2” Meters $ 226.92
2” Meters $ 362.88
3” Meters $ 793.68
4” Meters $ 1,428.36
6” Meters $ 3,627.72
Section 7. PFAS Impact Fee, effective on customer monthly billing statements from
July 1, 2021 through December 31, 2021, are hereby set forth as follows:
Monthly PFAS Impact Fee for:
5/8” and 3/4” Meters $ 3.40
1” Meters $ 5.66
1 1/2” Meters $ 11.32
2” Meters $ 18.12
3” Meters $ 39.66
4” Meters $ 71.40
6” Meters $ 181.32
Section 8. Drought Rates, as scheduled, would become effective on customer monthly
billing statements per ccf of potable water in addition to the Commodity Rate
in effect should a mandate by the State of California or other agency of
authority be declared. The schedule effective July 1, 2021 is hereby set forth
as follows:
Drought Stage Water Use Addition per ccf
Reduction
No Drought 0% $0.00/ccf
Stage 1 10% $0.12/ccf
Stage 2 20% $0.26/ccf
Stage 3 30% $0.55/ccf
Stage 4 50% $1.01/ccf
Page 84 of 172
Resolution No. 2021-XX of Establishing New Schedules of Water Rates and Charges Effective July 1, 2021 4
Section 9. Additional rates and fees for service are as follows:
The charge for Permanent Untreated Water Service as defined in Section
3.4.1 of the Rules and Regulations for Water Service shall be as follows:
The current Metropolitan Water District of Southern California
(“MWD”) Untreated Full rate, plus charges by the Municipal Water
District of Orange County (“MWDOC”), plus any other fees, charges
or penalties as may be imposed by MWD and/or MWDOC, plus $13
per acre-foot.
PASSED AND ADOPTED this 8th day of June 2021, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Phil Hawkins, 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
Page 85 of 172
Resolution No. 2021-XX Establishing New Schedules of Sewer Rates and Charges Effective July 1, 2021 1
RESOLUTION NO. 2021-XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ESTABLISHING NEW SCHEDULES OF SEWER RATES
AND CHARGES EFFECTIVE JULY 1, 2021 AND
RESCINDING RESOLUTION NO. 2019-17
WHEREAS, pursuant to California Water Code Section 31007, the Board of Directors of
the Yorba Linda Water District is required to set sewer rates and charges at
a level which will yield an amount of revenue sufficient to pay for operating
expenses, provide for repairs and depreciation of works, and pay the
principal and interest on any bonded debt.
WHEREAS,Section 5470 et seq. of the California Health and Safety Code authorizes
YLWD to establish rates and charges regarding sanitation and sewerage
system and to collect those rates and charges on the County of Orange
property tax roll.
WHEREAS, the District Board of Directors previously adopted Resolution No. 2019-17,
which established sewer rates and charges effective July 1, 2019.
WHEREAS, at the Board of Directors meeting on April 13, 2021, the Board of Directors
considered, received and filed the 2021 Water and Sewer Rate Study
Report (“2021 Rate Study”), including the schedule of sewer rate increases
described in the Rate Study.
WHEREAS,pursuant to, and in compliance with, Proposition 218 (California Constitution
art. XIII D), the District on April 22, 2021 mailed a notice of its public hearing
to consider a new five-year schedule of sewer rate increases (“Prop 218
Notice”) to all YLWD customers of record and parcel owners within the
District’s service area.
WHEREAS,on June 8, 2021, and in accordance with article XIII D, Section 6, the Board
of Directors held a public hearing regarding its Prop 218 Notice and
considered timely written and oral protests, if any, to the Prop 218 Notice.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba Linda
Water District does hereby find, determine, and resolve the following:
Section 1.The matters set forth in the foregoing recitals are true and correct.
Section 2.Resolution No. 2019-17 is hereby rescinded effective July 1, 2021.
Page 86 of 172
Resolution No. 2021-XX Establishing New Schedules of Sewer Rates and Charges Effective July 1, 2021 2
Section 3.Timely written protests, if any, against the proposed new schedule of sewer
rates and charges in the Prop 218 Notice were not presented by a majority
of parcels.
Section 4.The Board of Directors reviewed the record for this matter, which includes
the 2021 Rate Study and the analysis of expenses and revenues set forth
therein. Based on that review, the Board of Directors finds and determines
that the record supports the following:
A. Revenues derived from the rates and charges will not exceed the
revenues required to provide the property related service; and
B. Revenues derived from the rates and charges will not be used for
any purpose other than that for which the rates or charges are
imposed; and
C. The amount of a rate or charge imposed upon any parcel or customer
as an incident of property ownership does not exceed the
proportional cost of service attributable to the parcel.
D. No rate or charge will be imposed for a service unless that service is
actually used by, or immediately available to, the owner of the
property in question.
E. No rate or charge will be imposed for general governmental services
including, but not limited to, police, fire, ambulance or library
services, where the service is available to the public at large in
substantially the same manner as it is to property owners.
Section 5.The District sewer rates and customer connection charges for sewer
service are hereby established as follows and will take effect on July
1, 2021:
A. Residential:
1. Residential - individually metered $9.55 per month
2. Residential - master metered $9.19 per month per unit
B. Commercial-Industrial and Public Schools:
1. For all sewer customers in this category who use meter
readings, the rate is as follows:
a. First 700 cubic feet per month of water consumption
per month: $9.55 per month.
Page 87 of 172
Resolution No. 2021-XX Establishing New Schedules of Sewer Rates and Charges Effective July 1, 2021 3
b. All water consumption in excess of 700 cubic feet
per month: $0.37 per 100 cubic feet.
2. Alternatively, for customers who have a sewer meter or
who can demonstrate to the District’s satisfaction that
100% of the water meter reading ends up in the District’s
sewer system, the rate is as follows:
a. First 700 cubic feet per month of water consumption
per month: $9.55 per month
b. All water consumption in in excess of 700 cubic feet
per month: $0.37 per 100 cubic feet.
PASSED AND ADOPTED this 8th day of June 2021 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Phil Hawkins, 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
Page 88 of 172
ITEM NO. 7.3.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
SUBJECT:Collection of Capital (Finance) Charges on Property Tax Roll
RECOMMENDATION:
That the Board of Directors adopt Resolution No. 2021-XX electing to place capital (finance)
charges on the property tax roll for collection and remittance to the District and adopting the
report to place said charges on the property tax roll for Fiscal Year 2022.
BACKGROUND:
In developing the Scope of Work for the 2020 Water and Sewer Rate Study (“Study”), a key
objective was to establish four (4) rate components for the water enterprise fund (utility): (1)
the fixed monthly service charge, (2) the commodity rate, (3) the fixed Capital (Finance)
Charge (“CFC”), and (4) the fixed PFAS Impact Fee.
Consistent with the Board of Directors’ (“Board”) Study objectives, Raftelis developed the CFC
as a means to collect that recovers the District’s scheduled annual debt service principal and
interest obligations on water system capital projects. The remaining costs of service for water
system capital projects are to be recovered through the meter capacity component of the
monthly service charge, and all other costs of service will be collected on monthly bills as set
forth in the current Proposition 218 notification
The CFC are fixed charges based on “debt service principal and interest” obligations due each
fiscal year for the debt financing of major water system capital assets.
Under California Health and Safety Code Sections 5470 et seq. the District may elect to have
the County of Orange Auditor-Controller place the Capital Finance Charges on the Orange
County property tax roll (“Property Tax Roll”) for collection and remittance to the District. This
method of collecting the CFC reduces administrative costs, provides predictable and
guaranteed revenue to cover debt service obligations, and helps the District maintain its
strong credit rating.
To collect the current Capital (Finance) Charges on the property tax roll for FY22, the County
requires a certified Resolution by the Board of Directors directing their staff to add the charges
Page 89 of 172
to the property tax roll for those properties assessed.
ATTACHMENTS:
1.Resolution No. 2021-XX - Placing CFC on FY22 Property Tax Roll
2.County of Orange Agreement for Collection of Special Charges
Page 90 of 172
Resolution No. 2021-XX Electing to Place Capital (Finance) Charges on Property Tax Roll and Adopting Report for FY22 1
RESOLUTION NO. 2021-XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ELECTING TO PLACE CAPITAL (FINANCE) CHARGES ON THE
PROPERTY TAX ROLL FOR COLLECTION AND REMITTANCE
TO THE DISTRICT AND ADOPTING THE REPORT TO PLACE SAID
CHARGES ON THE PROPERTY TAX ROLL FOR FISCAL YEAR 2022
WHEREAS, On June 8, 2021, the Yorba Linda Water District (“District”) Board of
Directors adopted Resolution No. 2021-XX approving a schedule of Capital
(Finance) Charges in compliance with substantive and procedural
requirements of Proposition 218 (California Constitution Art. XIII D).
WHEREAS, The Capital (Finance) Charges are fixed charges based on the ‘debt service
principal and interest’ payments due each fiscal year for large-scale water
projects.
WHEREAS, Under California Health and Safety Code Sections 5470 et seq. the District
may elect to have the County of Orange Auditor-Controller place the Capital
(Finance) Charges on the Orange County property tax roll (“Property Tax
Roll”) for collection and remittance to the District.
WHEREAS, Collection of the Capital (Finance) Charge on the Property Tax Roll is
efficient, cost effective for the District, and provides the District with a
predictable revenue stream.
WHEREAS, In accordance with Section 5473 of the California Health and Safety Code,
each fiscal year the District Board of Directors shall cause a written report
(“Report”) to be prepared and filed with the Board Secretary, which contains
(1) a description of each parcel of real property within the District receiving
water service and (2) the amount of the Capital (Finance) Charge for each
parcel.
WHEREAS, Before the District may collect the Capital (Finance) Charges on the
Property Tax Roll for the first time and for each subsequent fiscal year
thereafter, the District must provide notice of (1) the filing of the Report with
the Board Secretary and (2) the public hearing on the Report in accordance
with Section 5473.1 of the California Health and Safety Code.
WHEREAS, For Fiscal Year 2022, the District’s Board of Directors caused a Report
(“FY22 Report”) to be prepared and filed with the Board Secretary, which is
incorporated herein by this reference.
WHEREAS, On June 8, 2021, the Board of Directors conducted the hearing as noticed
and considered all timely written and oral protests, if any, to the FY22
Report.
Page 91 of 172
Resolution No. 2021-XX Electing to Place Capital (Finance) Charges on Property Tax Roll and Adopting Report for FY22 2
NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District does hereby find, determine, and resolve the following:
Section 1. Written protests to the FY22 Report were not made by a majority of the
parcel owners listed in the FY22 Report.
Section 2. The FY22 Report is hereby adopted in its entirety for entry of the Capital
(Finance) Charges on the Property Tax Roll and the list of parcels, as they
appear on the current Property Tax Roll subject to the Capital (Finance)
Charges, is hereby certified.
Section 3. The Board of Directors elects to have the County of Orange Auditor-
Controller place the Capital (Finance) Charge on the Property Tax Roll for
collection and remittance to the District.
Section 4. The District’s General Manager or his designee is authorized and directed
to file with the County of Orange Auditor-Controller (a) a copy of this
Resolution, (b) the FY22 Report, and (c) such other documentation as the
County Auditor-Controller may require to accomplish the purposes of this
Resolution.
Section 5. This Resolution shall become immediately effective upon adoption and shall
remain in effect until repealed.
Section 6. The Board Secretary shall certify to the passage and adoption of this
Resolution by a two-thirds vote of the District’s Board of Directors.
PASSED AND ADOPTED this 8th day of June 2021 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Phil Hawkins, 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
Page 92 of 172
AGREEMENT FOR COLLECTION OF SPECIAL
TAXES, FEES, CHARGES AND ASSESSMENTS
THIS AGREEMENT is made and entered into this 8th day of June, 2021 by and between the
COUNTY OF ORANGE, a political subdivision of the State of California, hereinafter referred to
as “County” and the Yorba Linda Water District, hereinafter referred to as ‘Authority”.
R E C I T A L S
The following recitals are a substantive part of this Agreement:
WHEREAS, the parties desire to enter into an agreement whereby taxes and special
assessments for the Authority will be collected by the County at the same time and in the same
manner as County taxes are collected and the Authority will pay to the County the fees for collection
hereinafter set forth; and
WHEREAS, Section 29142 of the Government Code provides that when taxes or assessments
are collected by a county for any special district, or zone, or improvement district thereof, excluding a
school district, the board of supervisors may provide for a collection fee for such services; and
WHEREAS, Section 29304 of the Government Code provides that whenever any special
assessment or special assessment taxes are levied upon land or real property by any city, county,
Authority or other public corporation, and the same are to be collected by a County, there shall be
added to the amount of the special assessment or special assessment tax an amount fixed by
agreement between the county and city, district, public corporation, officer, or body for each special
assessment or special assessment tax to be collected; and
WHEREAS, Section 51800 of the Government Code provides for the County to collect
special assessments on County property tax rolls for cities and districts located in the County, and to
enter into an agreement regarding the amount of compensation to be paid to the County for the
collection of such assessments; and
WHEREAS, when requested by Authority, it is in the public interest that the County collect
on the County tax rolls the special taxes, fees, and assessments for Authority.
NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows:
AGREEMENT
1. Collection Services. County agrees, when requested by Authority as hereinafter
provided, or as required by law, to collect on the County tax rolls the special taxes, fees, and
assessments of Authority, and of each zone or improvement district thereof.
2. Transmission of Information. When County is to collect Authority’s special taxes
and assessments, Authority agrees to notify the Orange County Auditor-Controller of the Assessor’s
Page 93 of 172
2
parcel numbers and the amount of each special tax, fee, or assessment to County, and including, but
not limited to, any act of omission or assessment to be so collected.
3. Certification by the Authority. The Authority shall certify to the Orange County
Auditor-Controller the fixed charge special assessments in a dollar amount to be applied on each
parcel of real property which parcel shall be designated by the assessment (i.e., parcel) number
shown on the County Secured Assessment Roll for the year in which the assessment is to be
collected.
4. Verification by Authority. It shall be the obligation of the Authority prior to the
time of delivery to the Orange County Auditor-Controller of the fixed charge special assessment roll
to check the County Secured Assessment Roll after it is filed by the Orange County Assessor with
the Orange County Auditor-Controller to verify that the parcel numbers on the assessment roll for
fixed charge special assessments certified by the Authority correspond with the assessment (i.e.,
parcel) numbers shown on the County Secured Assessment Roll. Any changes in special assessment
data previously certified to the Orange County Auditor-Controller by the Authority, which changes
occur as a result of such verification, shall be certified by the Authority to the Orange County
Auditor-Controller.
5. Collection Fee. County will charge the sum of 0.30 percent (0.30%) of the original
value for each special tax, fee, or assessment that is to be collected on the County tax rolls by the
County for the Authority.
6. Charge for Revision of Assessment. After the roll has been delivered by the Orange
County Auditor-Controller to the Orange County Tax Collector the County will charge the Authority
for each fixed charge special assessment changed or deleted. Said charge shall be $15.00 for each
assessment or parcel number placed on the County Secured Assessment Roll. Payment shall be
submitted to the Orange County Auditor-Controller with the request for the change or deletion.
7. Modification of Collection Fees and Charges. The County reserves the right to
increase or decrease any charges herein provided in proportion to any changes in costs incurred by
the County in providing the services described herein, provided that written notice of any increase or
decrease in charges shall be given by the County to the Authority on or before May 15 of any year
during the term of the Agreement.
8. Authority for Levy and Compliance with Law. Authority warrants that the taxes,
fees, or assessments imposed by Authority and collected pursuant to this Agreement comply with all
requirements of state law, including but not limited to Article XIIIC and XIIID of the California
Constitution (Proposition 218).
9. Release. Authority hereby releases and forever discharges County and its officers,
agents and employees from any and all claims, demands, liabilities, costs and expenses, damages,
causes of action, and judgments, in any manner arising out of Authority’s responsibility under this
agreement, or other action taken by Authority in establishing a special tax, fee, or assessment and
implementing collection of special taxes or assessments as contemplated in this agreement, including
but not limited, any required remedial action in the case of delinquencies in such assessment
payments or the issuance, sale, or administration of any bonds issued in connection with the
Authority’s program.
Page 94 of 172
3
10. Indemnification. Authority agrees to and shall defend, indemnify and save harmless
County and its officers, agents and employees (“indemnified parties”) from any and all claims,
demands, liabilities, costs and expenses. damages, causes of action, and judgments, in any manner
arising out of any of Authority’s responsibility under this agreement, or other action taken by
Authority in establishing a special tax, fee, or assessment and implementing collection of special
taxes, fees, or assessment as contemplated in this agreement, including but not limited, any required
remedial action in the case of delinquencies in such assessment payments or the issuance, sale, or
administration of any bonds issued in connection with the Authority’s program.
11. Cooperation. Authority agrees that its officers, agents and employees will cooperate
with County by answering inquiries made to Authority by any person concerning Authority’s special
tax, fee, or assessment, and Authority agrees that its officers, agents and employees will not refer
such individuals making inquiries to County officers or employees for response.
12. Assignment. Authority shall not assign or transfer this agreement or any interest
herein and any such assignment or transfer or attempted assignment or transfer of this agreement or
any interest herein by Authority shall be void and shall immediately and automatically terminate this
agreement.
13. Term of Agreement. All existing agreements between the County and Authority
pertaining to collection of taxes and special assessments by the County for the Authority shall be
terminated upon the execution of this Agreement. This Agreement shall continue from year to year
and shall be subject to cancellation by either party by giving written notice to the other party of
cancellation prior to July 1st of the preceding fiscal year.
14. Waiver. County or Authority’s waiver of breach of any one term, covenant, or other
provision of this agreement, is not a waiver of breach of any other term, nor subsequent breach of the
term or provision waived.
IN WITNESS WHEREOF, the Parties hereto have signed this Agreement as of the day and
year first above written.
Yorba Linda Water District,
AUTHORITY
By: ________________________________________
Brett R. Barbre
General ManagerIts: ________________________________________
COUNTY OF ORANGE
By:
Its:
Page 95 of 172
4
APPROVED AS TO FORM:
By:
Andrew B. Gagen, Esq., General Counsel to Authority
Kidman Gagen Law LLP
By:
__________________________________, Deputy County Counsel
Page 96 of 172
ITEM NO. 8.1.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Annie Alexander, Senior Executive Assistant / Board Secretary
SUBJECT:Minutes of the Board of Directors Regular Meeting Held May 11,
2021
RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
1.Draft Meeting Minutes
Page 97 of 172
Minutes of the YLWD Board of Directors Regular Meeting Held May 11, 2021 at 6:30 p.m. 1
2021-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Tuesday, May 11, 2021, 6:30 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. TELECONFERENCE INFORMATION
As noted on the agenda, this meeting was facilitated via teleconference pursuant
to Paragraph 3 of Executive Order N-29-20 issued by the Governor of California
on March 17, 2020.
2. CALL TO ORDER
The meeting was called to order at 6:32 p.m.
3. PLEDGE OF ALLEGIANCE
President Hawkins led the pledge.
4. ROLL CALL
DIRECTORS PRESENT STAFF PRESENT
Phil Hawkins, President Brett R. Barbre, General Manager
J. Wayne Miller, PhD, Vice President (Joined at 6:42 p.m.)Doug Davert, Asst General Manager
Trudi DesRoches John DeCriscio, Operations Mgr
Brooke Jones Gina Knight, HR and Risk Manager
Tom Lindsey (Joined at 6:36 p.m.)Delia Lugo, Finance Manager
Rosanne Weston, Engineering Mgr
Annie Alexander, Board Secretary
Paige Appel, Budget Analyst
Robyn Hollinshead, Sr IS Admstr
Alison Martin, Public Affairs Manager
Veronica Ortega, Executive Asst
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
5. ADDITIONS/DELETIONS TO THE AGENDA
None.
Page 98 of 172
Minutes of the YLWD Board of Directors Regular Meeting Held May 11, 2021 at 6:30 p.m. 2
2021-XXX
6. INTRODUCTIONS AND PRESENTATIONS
6.1.Elected Official Liaison Reports
MWDOC Director Al Nederhood reported on the status of water related
legislation and statewide drought conditions.
Yorba Linda Council Member Gene Hernandez also reported on recent
legislative activity and the scheduled reopening of the California economy.
6.2.Federal and State Legislative Update
Staff reviewed the monthly legislative reports provided by Townsend Public
Affairs and noted that AB 339 has been amended and no longer includes
special districts.
Eric O’Donnell, Senior Associate from Townsend Public Affairs, briefed the
Board on the Governor’s revised budget, allocations for water utility bill
assistance, and a new drought resiliency plan. He also noted that
Congresswoman Young Kim accepted the District’s request for community
project funding for construction of an additional heli-hydrant.
6.3.Status of Investments Held in Public Agency Retirement Services (PARS)
Section 115 Trust
General Manager Barbre reviewed the purpose of the trust and targeted
pay downs of the District’s post-employment benefit obligations (OPEB).
Angela Tang, Client Services Coordinator from PARS, reviewed the status
of the District’s contributions.
Keith Stribling, Senior Portfolio Manager at High Mark Capital Management,
briefed the board on the District’s portfolio performance.
6.4.Status of Information Systems Activities
Staff reviewed enhancements made to the District’s information systems
(IS) to address security, efficiency, and compliance following an audit
performed in September 2019. General Manager Barbre recognized and
thanked the District’s IS personnel for their hard work and responsiveness.
7. PUBLIC COMMENTS
None.
Page 99 of 172
Minutes of the YLWD Board of Directors Regular Meeting Held May 11, 2021 at 6:30 p.m. 3
2021-XXX
8. CONSENT CALENDAR
Director Miller made a motion, seconded by Director Jones, to approve the
Consent Calendar. Motion carried 5-0-0-0 on a roll call vote.
8.1.Minutes of the Board of Directors Regular Meeting Held April 13, 2021
Recommendation: That the Board of Directors approve the minutes as
presented.
8.2.Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize
disbursements in the amount of $2,523,187.81.
8.3.Budget to Actual Reports for the Month Ending March 31, 2021
Recommendation: That the Board of Directors receive and file the Budget
to Actual Reports for the Month Ending March 31, 2021.
8.4.Cash and Investment Report for Period Ending March 31, 2021
Recommendation: That the Board of Directors receive and file the Cash and
Investment Report for Period Ending March 31, 2021.
8.5.Unaudited Financial Statements for the Third Quarter of Fiscal Year 2021
Recommendation: That the Board of Directors receive and file the
Unaudited Financial Statements for Third Quarter of Fiscal Year 2021.
8.6.Directors’ and General Manager Fees and Expenses Report for Third
Quarter of Fiscal Year 2021
Recommendation: That the Board of Directors receive and file the Directors’
and General Manager Fees and Expenses Report for Third Quarter of
Fiscal Year 2021.
8.7.Budgeted Positions for Fiscal Year 2022
Recommendation: That the Board of Directors adopt Resolution No. 2021-
XX ratifying the budgeted positions for Fiscal Year 2022, and adopt
Resolution No. 2021-XX amending Exhibit A of the Memorandum of
Understanding between the District and the Yorba Linda Water District
Employees Association for the remainder of Fiscal Year 2022-2023.
Page 100 of 172
Minutes of the YLWD Board of Directors Regular Meeting Held May 11, 2021 at 6:30 p.m. 4
2021-XXX
8.8.Declaration of Restrictive Covenants with Brennan Pieter and Brianne
Michelle De Raad
Recommendation: That the Board of Directors authorize the President and
General Manager to execute the Declaration of Restrictive Covenants with
Brennan Pieter and Brianne Michelle De Raad of 5999 Organza Drive,
Yorba Linda.
9. DISCUSSION ITEMS
9.1.Status of Operations Activities
Staff reviewed recent upgrades made to the District’s filling stations and
noted that construction had begun on the Camino De Bryant heli-hydrant
project.
9.2.Construction of Per- and Polyfluoroalkyl Substances (PFAS) Removal
Groundwater Treatment Plant
Staff reported on the status of this construction project and reviewed the
project schedule.
10. REPORTS, INFORMATION ITEMS, AND COMMENTS
10.1.Director’s Reports
A list of meetings and events attended was included in the agenda packet.
10.2.General Manager’s Report
General Manager Barbre reported on the status of delinquent water bills
and noted that the District’s lobby would be reopened to the public on June
15, 2021.
10.3.General Counsel’s Report
None.
10.4.Future Agenda Items and Staff Tasks
None.
Page 101 of 172
Minutes of the YLWD Board of Directors Regular Meeting Held May 11, 2021 at 6:30 p.m. 5
2021-XXX
11. COMMITTEE REPORTS
11.1.Interagency Committee with MWDOC and OCWD
(Hawkins/DesRoches) – Next meeting will be scheduled when needed.
11.2.Joint Agency Committee with City of Yorba Linda
(Hawkins/Lindsey) – Next meeting is scheduled Monday, June 7, 2021 at
4:00 p.m.
11.3.Joint Agency Committee with City of Placentia
(Miller/Lindsey) – Next meeting will be scheduled when needed.
12. BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1.Meetings from May 12 – June 30, 2021
13. ADJOURNMENT
13.1.Director Jones made a motion, seconded by Director Lindsey to adjourn the
meeting at 8:04 p.m. Motion carried 5-0-0-0 on a roll call vote.
Annie Alexander
Board Secretary
Page 102 of 172
ITEM NO. 8.2.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
Keri Hollon, Accounting Assistant I
SUBJECT:Payments of Bills, Refunds, and Wire Transfers
RECOMMENDATION:
That the Board of Directors ratify and authorize disbursements in the amount of
$3,064,441.03.
BACKGROUND:
Pursuant to Section 31302 of the California Water Code, staff is submitting a list of
disbursements to the Board of Directors for approval. The items on this disbursement list
include: a wire of $1,446,000.94 to MWDOC for March 2021 water purchases; a wire of
$818.09 to So. California Gas Co. for April 2021 gas charges at multiple locations; a wire of
$584.00 to Switch for the remote data hosting co-location; a wire of $25,062.25 to So.
California Edison Co. for April 2021 electricity charges at multiple locations; a check of
$138,324.30 to ACWA/JPIA for June 2021 medical and dental premiums. Additionally: a wire
of $3,775.08 to Bank of America for May 2021 interest accrual payment; a check of
$45,504.14 to Aqua-Metric Sales for J19-52 meter replacement program. The balance of
$462,331.68 are routine invoices.
The Accounts Payable check register total is $2,122,400.48, Payroll No. 9 total is
$316,267.59, Payroll No. 10 total is $311,076.84, and Payroll No. 11 total is $314,696.12;
where disbursements for this agenda report total is $3,064,441.03. A summary of the
disbursements is attached.
ATTACHMENTS:
1.Cap Sheet 06-08-21
2.Check Register 05-25-21
3.Check Register 06-08-21
4.Credit Card 06-08-21
5.BOD Credit Card 06-08-21
Page 103 of 172
Summary of Disbursements
June 08, 2021
CHECK NUMBERS:
05/25/21
06/08/21
Computer Checks
Computer Checks
78032 – 78113
78114 – 78180
$
$
408,855.78
237,304.34
$ 646,160.12
WIRES:
W 051221 Southern Calif Edison Co. $ 25,062.25
W 051321 MWDOC $ 1,446,000.94
W 051421
W 051421A
W052721
Switch
Southern Calif Gas Co.
Bank of America
$
$
$
584.00
818.09
3,775.08
$ 1,476,240.36
TOTAL OF CHECKS & WIRES $ 2,122,400.48
PAYROLL NO. 9:
Direct Deposits $ 199,242.62
Payroll Taxes $ 53,259.16
EFT – CalPERS $ 44,434.18
Third Party Checks 7552 – 7556
$ 19,331.63
$ 316,267.59
PAYROLL NO. 10:
Direct Deposits $ 192,904.03
Payroll Taxes $ 51,497.92
EFT – CalPERS $ 47,269.69
Third Party Checks 7557 – 7561
$ 19,405.20
$ 311,076.84
PAYROLL NO. 11:
Direct Deposits $ 191,633.38
Payroll Taxes $ 51,467.10
EFT – CalPERS $ 47,289.32
Third Party Checks 7562 – 7570
$ 24,306.32
$ 314,696.12
TOTAL OF PAYROLLS $ 942,040.55
----------------------------------------------------------------------------------------------------------------------
DISBURSEMENT TOTAL: $ 3,064,441.03
==================================================================
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF JUNE 08, 2021
==================================================================
Page 104 of 172
Check No.Date Vendor Name Amount Description
78032 05/25/2021 VICTOR MOORE 88.09 CUSTOMER REFUND
78033 05/25/2021 WENDY HOLMES 72.10 CUSTOMER REFUND
78034 05/25/2021 SOO PARK 33.70 CUSTOMER REFUND
78035 05/25/2021 STEVEN C ANDERSON 157.08 CUSTOMER REFUND
78036 05/25/2021 YONGHUA TAN 49.16 CUSTOMER REFUND
78037 05/25/2021 DANIELLE BERGMANN 109.98 CUSTOMER REFUND
78038 05/25/2021 BRIDGEMARK 384.31 CUSTOMER REFUND
78039 05/25/2021 SHANNON MAGALLANEZ 27.41 CUSTOMER REFUND
78040 05/25/2021 SIGNPOST HOMES INC 656.85 CUSTOMER REFUND
78041 05/25/2021 RICHFIELD PROPERTIES LLC 1,452.64 CUSTOMER REFUND
78042 05/25/2021 ACWA/JPIA 138,324.30 MEDICAL & DENTAL PREMIUM - JUNE 2021
78043 05/25/2021 Alternative Hose Inc.225.69 PARTS FOR SKIDSTEER
78044 05/25/2021 Amazon Capital Services 621.95 STAND UP DESK & KEYBOARD FOR FINANCE
78045 05/25/2021 Aqua-Metric Sales Co.29,656.13 OPERATIONS WORK MATERIAL
78046 05/25/2021 Aramark 537.94 UNIFORM SERVICE
78047 05/25/2021 Archie's Towing 95.00 TOWING FEES FOR UNIT# 213
78048 05/25/2021 Armando Raya 250.00 BOOT REIMBURSEMENT - RAYA, A
78049 05/25/2021 AT & T - Calnet3 1,498.80 ATT CALNET
78050 05/25/2021 BASE HILL INC.3,712.58 JANITORIAL SERVICES
78051 05/25/2021 B.L. Wallace Distributor, Inc.1,122.25 METER LIDS
78052 05/25/2021 B & M Lawn and Garden Inc 52.56 MAINTENANCE SUPPLIES
78053 05/25/2021 BrightView Tree Care Services Inc.8,930.04 LANDSCAPE SERVICE
78054 05/25/2021 California Newspaper Partnership 1,770.00 UNCLAIMED MONIES & PROPOSE ORDINACE NOTICE
78055 05/25/2021 CB Technical 1,975.00 GIS & CMMS IT WORK - APRIL 2021
78056 05/25/2021 City Of Placentia 2,049.61 SEWER FEE COLLECT - APRIL 2021
78057 05/25/2021 Clinical Lab. Of San Bern.1,230.00 WATER QUALITY LAB WORK
78058 05/25/2021 Codekas Tools & Equipment 113.86 MECHANIC SHOP SUPPLIES
78059 05/25/2021 Communications Lab 19,060.76 J20-45 PROP 218 NOTICE & PROFESSIONAL SERVICES APRIL 2021
78060 05/25/2021 Culligan of Santa Ana 636.55 EQUIPMENT PE SOFTENER
78061 05/25/2021 Dell Financial Services LLC 136.13 ACROBAT PRO - KNIGHT, G
78062 05/25/2021 Discount Tire Centers (Andonian Enterprises Inc.)3,099.95 TIRES & PARTS FOR UNITS# 229, 207, 184 & E-162
78063 05/25/2021 Enthalpy Analytical, Inc.2,998.00 WATER QUALITY TESTING
78064 05/25/2021 Factory Motor Parts 1,817.10 MECHANIC SHOP SUPPLIES
78065 05/25/2021 EyeMed 1,428.73 EYEMED PREMIUM - MAY 2021
78066 05/25/2021 Fleet Services, Inc 233.51 PARTS FOR UNIT# 232
78067 05/25/2021 Freddie Ojeda 109.00 DRONE PILOT LICENSE REIMBURSEMENT - OJEDA, F
78068 05/25/2021 Fuller Truck Accessories 853.39 AMBER LIGHT BAR FOR UNIT# 235
78069 05/25/2021 G.M. Sager Construction Co., Inc.20,200.00 CONCRETE REPAIR - VARIOUS LOCATIONS
78070 05/25/2021 Grainger 43.55 SCADA MATERIALS
78071 05/25/2021 Haaker Equipment Co.1,345.00 SEWER CAMERA EQUIPMENT - REPAIR
78072 05/25/2021 Hashtag Pinpoint 9,001.00 STRATEGIC COMMUNICATIONS MARCH & APRIL 2021
78073 05/25/2021 Hayes Automation Inc.3,258.51 STRATEGIC COMMUNICATIONS MARCH & APRIL 2021
78074 05/25/2021 Hushmand Associates Inc 4,918.00 J09-22 WELL 22 TANK DESIGN
78075 05/25/2021 Hydrex Pest Control 416.00 PEST CONTROL
78076 05/25/2021 Infosend Inc.4,382.89 BILLING & POSTAGE CUSTOMER BILL
78077 05/25/2021 Inland (Kenworth)388.46 PARTS FOR UNIT #232
78078 05/25/2021 Jackson's Auto Supply - Napa 828.96 MECHANIC SHOP SUPPLIES & PARTS FOR SANTIAGO BOOSTER
78079 05/25/2021 Jeff Jenkins Service Technician 963.00 REPAIR WORK FOR CAR WASH STATION & SANTIAGO CANYON
78080 05/25/2021 Kidman Gagen Law 14,294.40 LEGAL SERVICES - APRIL 2021
78081 05/25/2021 Kimball Midwest 156.47 MECHANIC SHOP SUPPLIES
78082 05/25/2021 Managed Health Network 173.25 EAP -MAY 2021
78083 05/25/2021 Mc Fadden-Dale Hardware 173.23 TOOLS & EQUIPMENT
78084 05/25/2021 Mc Master-Carr Supply Co.73.62 PRODUCTION EQUIPMENT
78085 05/25/2021 MedPost Urgent Care 300.00 EMPLOYEE PHYSICALS
78086 05/25/2021 Minuteman Press 551.69 DOOR HANGER FOR LINE FLUSHING
78087 05/25/2021 Municipal Water District 24,650.00 J20-30 5 YEAR UPDATE URBAN WATER MANAGEMENT PLAN
78088 05/25/2021 NatPay Online Business Solutions 39.27 DOCULIVERY - APRIL 2021
For Checks Dated: 05/12/2021 thru 05/25/2021
Yorba Linda Water District
Check Register
Page 105 of 172
78089 05/25/2021 Nexus Office Environments 5,560.00 MIRALOMA ROOF REPAIRS
78090 05/25/2021 Nickey Kard Lock Inc 5,465.24 FUEL 04/16/21-04/30/21
78091 05/25/2021 Office Solutions 376.38 OFFICE SUPPLIES
78092 05/25/2021 Praxair Distribution 200.38 WELDING SUPPLIES
78093 05/25/2021 Precision Aerial Services, Inc 21,116.70 AIR COMPRESSOR SYSTEM & OIL - UNIT# 235
78094 05/25/2021 Psomas & Associates 7,165.00 J21-02 PROFESSIONAL SERVICES - MARCH 2021
78095 05/25/2021 P.T.I. Sand & Gravel, Inc.2,514.45 ROAD MATERIAL
78096 05/25/2021 Quinn Company 3,728.44 STATIONARY ENGINE PARTS
78097 05/25/2021 Raftelis Financial Consultants, Inc.8,912.50 J20-45/S PROFESSIONAL SERVICES APRIL 2021 - RATE STUDY
78098 05/25/2021 RKI Engineering, LLC 5,760.00 SCADA SUPPORT
78099 05/25/2021 Security Solutions 190.32 SECURITY CAMERA EQUIPMENT
78100 05/25/2021 Shred Confidential, Inc.63.00 MONTHLY SHRED SERVICE
78101 05/25/2021 SKC West, Inc.413.42 GAS DETECTORS CALIBRATION
78102 05/25/2021 South Coast AQMD 275.26 EMISSIONS FEE
78103 05/25/2021 Southeast Hydrogeology PLLC 12,375.00 J20-44 HEALTH CHECK FOR WELL #7, 20, 21
78104 05/25/2021 Steve Clayton 105.00 D5 CERTIFICATION REIMBURSEMENT - CLAYTON, S
78105 05/25/2021 The Bee Man 180.00 COLONY ABATEMENT
78106 05/25/2021 T-Mobile 0.48 T-MOBILE 3/21-4/20
78107 05/25/2021 Underground Service Alert 464.85 NEW TICKET CHARGES & CA STATE FEE
78108 05/25/2021 United Industries 194.48 WAREHOUSE SUPPLIES
78109 05/25/2021 U.S. ENERGY RECOVERY LLC 2,252.17 FACILITES OUTDOOR LIGHTING FIXTURES
78110 05/25/2021 United Water Works, Inc.5,219.05 OPERATIONS WORK MATERIAL
78111 05/25/2021 West Coast Batteries Inc 1,196.21 VEHICLE BATTERIES - VARIOUS UNITS
78112 05/25/2021 Sunrise Medical Group 640.00 J20-15 COVID TESTING EXPENSE
78113 05/25/2021 Sunrise Medical Group 13,760.00 J20-15 COVID TESTING EXPENSE
W051221 05/12/2021 Southern Calif Edison Co.25,062.25 ELECTRICITY CHARGES - APRIL 2021 VARIOUS LOCATIONS
W051321 05/13/2021 Municipal Water District 1,446,000.94 WATER DELIVERIES - MARCH 2021
W051421 05/14/2021 Switch Ltd 584.00 DATA HOSTING CO-LOCATION
W051421A 05/14/2021 Southern Calif Gas Co.818.09 GAS CHARGES - APRIL 2021 VARIOUS LOCATIONS
1,882,321.06
04/29/2021 PAYROLL - EMPLOYEE DIRECT DEPOSIT 199,242.62
04/29/2021 PAYROLL - PAYROLL TAX PAYMENT 53,259.16
04/29/2021 PAYROLL - CALPERS & TASC 44,434.18
7552 04/29/2021 Colonial Life & Accident 112.61
7553 04/29/2021 Lincoln Financial Group 4,359.17
7554 04/29/2021 Nationwide Retirement Solutions 14,108.01
7555 04/29/2021 California State Disbursement Unit 366.92
7556 04/29/2021 California State Disbursement Unit 384.92
316,267.59
05/13/2021 PAYROLL - EMPLOYEE DIRECT DEPOSIT 192,904.03
05/13/2021 PAYROLL - PAYROLL TAX PAYMENT 51,497.92
05/13/2021 PAYROLL - CALPERS & TASC 47,269.69
7557 05/13/2021 Colonial Life & Accident 112.61
7558 05/13/2021 Lincoln Financial Group 4,359.17
7559 05/13/2021 Nationwide Retirement Solutions 14,181.58
7560 05/13/2021 California State Disbursement Unit 366.92
7561 05/13/2021 California State Disbursement Unit 384.92
311,076.84
Payroll Checks #9
Payroll Checks #10
Page 106 of 172
Check No.Date Vendor Name Amount Description
78114 06/08/2021 ANDREW DRYFUS 44.95 CUSTOMER REFUND
78115 06/08/2021 MARGARET TAVARES 39.48 CUSTOMER REFUND
78116 06/08/2021 KANJIBHAI GHADIA 75.35 CUSTOMER REFUND
78117 06/08/2021 JASON WEAVER 16.32 CUSTOMER REFUND
78118 06/08/2021 GARY TUMBERGER 69.05 CUSTOMER REFUND
78119 06/08/2021 YEN-YUNG CHEN 154.77 CUSTOMER REFUND
78120 06/08/2021 DARRELL L COWAN 128.16 CUSTOMER REFUND
78121 06/08/2021 SINAN LIU 40.47 CUSTOMER REFUND
78122 06/08/2021 RYAN MALONE 107.56 CUSTOMER REFUND
78123 06/08/2021 MUSA MADAIN 194.26 CUSTOMER REFUND
78124 06/08/2021 GUMERCINDA TELLES 47.89 CUSTOMER REFUND
78125 06/08/2021 LILLET WALTERS SCHERMERHORN 197.04 CUSTOMER REFUND
78126 06/08/2021 MARISSA NORLING 14.77 CUSTOMER REFUND
78127 06/08/2021 ANGELICA HARRIS 40.47 CUSTOMER REFUND
78128 06/08/2021 LAWRENCE E TANNAS 120.87 CUSTOMER REFUND
78129 06/08/2021 SIGNPOST HOMES INC 437.53 CUSTOMER REFUND
78130 06/08/2021 LUNA CONSTRUCTION MANAGEMENT LLC 310.40 CUSTOMER REFUND
78131 06/08/2021 KM PROP MGMT GROUP 424.11 CUSTOMER REFUND
78132 06/08/2021 MAX FORTUNE MANAGEMENT LLC 401.11 CUSTOMER REFUND
78133 06/08/2021 Adams Pipeline Tapping 900.00 J21-11 PIPE TAPPING FOR HELI-HYDRANT
78134 06/08/2021 AIRGAS INC 46.44 WELDING SUPPLIES
78135 06/08/2021 Alternative Hose Inc.1,884.52 PARTS FOR #E-161 & MECHANICS EQUIPMENT
78136 06/08/2021 Aqua-Metric Sales Co.45,504.14 OPERATIONS WORK MATERIAL
78137 06/08/2021 Aramark 226.97 UNIFORM SERVICE
78138 06/08/2021 AT & T - Calnet3 2,859.47 ATT CALNET
78139 06/08/2021 A & Y Asphalt Contractors Inc.13,301.00 J21-11 HELI-HYDRANT SITE WORK & CONCRETE REPAIR ON ROXDALE
78140 06/08/2021 Bee Busters, Inc 300.00 COLONY ABATEMENT
78141 06/08/2021 BrightView Tree Care Services Inc.7,996.49 LANDSCAPE SERVICE
78142 06/08/2021 CalCard US Bank 28,821.10 CREDIT CARD TRANSACTIONS -MAY 2021
78143 06/08/2021 CB Technical 4,995.00 DIGALERT SOFTWARE PURCHASE & INSTALL
78144 06/08/2021 City Of Anaheim - Anaheim Public Utilities 1,840.90 ELECTRICAL CHARGES APRIL 2021 - VARIOUS LOCATIONS
78145 06/08/2021 City Of Placentia 796.00 ENCROACHMENT PERMITS
78146 06/08/2021 Griswold Industries dba Cla-Val Co.8,654.69 CLA-VALVE PARTS
78147 06/08/2021 Dell Financial Services LLC 12,116.81 MONITORS & LAPTOPS FOR OPERATIONS
78148 06/08/2021 Discount Tire Centers (Andonian Enterprises Inc.)192.47 TIRES FOR UNIT# 228
78149 06/08/2021 Dean Criske Trucking 763.17 ROAD MATERIAL
78150 06/08/2021 Elite Equipment Inc 1,026.29 WATER OPERATIONS TOOLS
78151 06/08/2021 Factory Motor Parts 975.65 MECHANIC SHOP SUPPLIES
78152 06/08/2021 Grainger 322.14 PARTS FOR UNIT# 193
78153 06/08/2021 Infosend Inc.5,699.06 BILLING & POSTAGE CUSTOMER BILL
78154 06/08/2021 Jackson's Auto Supply - Napa 158.54 PARTS FOR UNIT# E-169
78155 06/08/2021 Krieger & Stewart, Incorporated 4,973.33 J21-01 PROFESSIONAL SERVICES - APRIL 2021
78156 06/08/2021 Mario S. Banuelos 1,815.00 J21-11 HELI-HYDRANT WELDING WORK
78157 06/08/2021 Mc Fadden-Dale Hardware 963.78 TOOLS & EQUIPMENT
78158 06/08/2021 Mc Master-Carr Supply Co.939.94 PRODUCTION EQUIPMENT
78159 06/08/2021 MedPost Urgent Care 360.00 EMPLOYEE PHYSICALS
78160 06/08/2021 Minuteman Press 254.15 J20-31 FOG LAMINATIONS
78161 06/08/2021 MSDSOnline, Inc.2,474.00 MSDS ONLINE ANUAL RENEWAL
78162 06/08/2021 Murcal, Inc.162.23 STATIONARY ENGINE REPAIR
78163 06/08/2021 Nickey Kard Lock Inc 6,207.26 FUEL 05/01/21-05/15/21
78164 06/08/2021 Office Solutions 659.55 OFFICE SUPPLIES
78165 06/08/2021 Psomas & Associates 20,435.00 J21-02 & J20-16S PROFESSIONAL SERVICES - APRIL 2021
78166 06/08/2021 Red Wing Shoes 407.04 SAFETY BOOTS
78167 06/08/2021 Resource Computer Solutions 20,698.50 IT CONSULTING 5/15/21-6/14/21
78168 06/08/2021 RKI Engineering, LLC 720.00 J20-05 PFAS PLANT CONTROL SUPPORT
78169 06/08/2021 Royal Truck Body 185.42 SHELF FOR UNIT# 231
78170 06/08/2021 Security Solutions 1,109.07 DOOR HINGE AND INSTALL FOR RICHFIELD
78171 06/08/2021 Tetra Tech, Inc.13,970.00 J20-37 PROFESSIONAL SERVICES - TIMBER RIDGE
78172 06/08/2021 The Bee Man 195.00 COLONY ABATEMENT
For Checks Dated: 05/26/2021 thru 06/08/2021
Yorba Linda Water District
Check Register
Page 107 of 172
78173 06/08/2021 Titus Industrial Group 692.73 SEWER LID TOOLS
78174 06/08/2021 Townsend Public Affairs, Inc.5,000.00 CONSULTING SERVICES - MARCH & APRIL 2021
78175 06/08/2021 United Rentals 156.91 J21-11 EQUIPMENT RENTAL
78176 06/08/2021 UNUM Life Insurance Co. of America 4,866.21 LIFE,AD&D,STD<D- JUNE 2021
78177 06/08/2021 United Water Works, Inc.680.39 OPERATIONS WORK MATERIAL
78178 06/08/2021 YO Fire 6,319.64 OPERATIONS WORK MATERIAL
78179 06/08/2021 Yorba Linda Chamber 25.00 J20-45 NETWORK LUNCH - MARTIN, A
78180 06/08/2021 Konica Minolta Business 788.78 COPY CHARGES C258
W052721 05/27/2021 Bank Of America 3,775.08 INTEREST ON BOA LOC - MAY 2021
241,079.42
05/27/2021 PAYROLL - EMPLOYEE DIRECT DEPOSIT 191,633.38
05/27/2021 PAYROLL - PAYROLL TAX PAYMENT 51,467.10
05/27/2021 PAYROLL - CALPERS & TASC 47,289.32
7562 05/27/2021 Colonial Life & Accident 112.61
7563 05/27/2021 Lincoln Financial Group 4,360.71
7564 05/27/2021 Nationwide Retirement Solutions 14,431.61
7565 05/27/2021 California State Disbursement Unit 366.92
7566 05/27/2021 California State Disbursement Unit 384.92
7567 05/27/2021 Allstate 1,320.98
7568 05/27/2021 Midland 200.00
7569 05/27/2021 Reliance 66.61
7570 05/27/2021 Ameritas 3,061.96
314,696.12
Payroll Checks #11
Page 108 of 172
Vendor Name Amount Description
Community Lock & Safe Service, Inc.3.22 LOCK BOX KEY
WIN-911 660.00 ANNUAL SOFTWARE RENEWAL
UCI Marketplace 10.00 CEE QUARTERLY MEETING REGISTRATION - Miller
Alternative Hose Inc.295.32 HOSE ASSEMBLY-UNIT# 184
Alternative Hose Inc.51.16 WELDING HOSE-UNIT# 231
Amazon Capital Services 8.47 EMPLOYEE SERVICE RECOGNITION
Home Depot 60.28 BLADES FOR UNIT# 174
Grainger 4.83 FACILITIES REPAIR MATERIAL
Kristy's Donuts 13.10 SAFETY MEETING SUPPLIES
Amazon Capital Services 130.50 EMPLOYEE SERVICE RECOGNITION
Arbuckle Electric Motors 80.45 SCADA MATERIALS
Home Depot 565.62 FACILITIES REPAIR PARTS & PAINTING SUPPLIES
Community Lock & Safe Service, Inc.66.23 KEYS FOR GATES & FACILITIES
Udemy, Inc.28.98 TRAINING CLASS REGISTRATION - BACANI, A
Udemy, Inc.13.99 TRAINING CLASS REGISTRATION - AYALA, A
Kristy's Donuts 12.90 SAFETY MEETING SUPPLIES
Bud's Equipment Service 245.00 SERVICE & REPAIR OF TIRE MACHINE
Liebert Cassidy Whitmore 25.00 J20-15 COVID-19 SUPPLEMENTAL PAID LEAVE WEBINAR
Joaquin's Mexican Restaurant 55.15 LUNCH MEETING - 3 ATTEND
Donut Star 25.00 SAFETY MEETING SUPPLIES
Home Depot 92.43 LANDSCAPE & WAREHOUSE SUPPLIES
Home Depot 21.97 PRODUCTION PARTS
RING INC 30.00 ANNUAL SERVICE CHARGE
Time Warner Cable 657.03 INTERNET & DISTRICT TV SERVICES
Republic Services #676 550.51 DISPOSAL SERVICE
Republic Services #676 765.23 DISPOSAL SERVICE
ONLINE Information Services, Inc.91.50 ONLINE UTILITY EXCHANGE & COLLECTION
ONLINE Information Services, Inc.621.90 ONLINE UTILITY EXCHANGE & COLLECTION
ORANGE COUNTY CIRCUIT BREAKERS 17.24 PRODUCTION PARTS
B & M Lawn and Garden Inc 83.50 OPERATIONS MATERIAL
Mc Fadden-Dale Hardware 6.47 MECHANIC SHOP TOOLS
Walters Wholesale Electric Co.18.36 ELECTRICAL WIRE FOR SCADA
Staples 53.86 OFFICE SUPPLIES
ZOOM 69.98 VIRTUAL MEETING SUBSCRIPTION
Craftsman Wood Fired Pizza 120.00 NEW HIRE LUNCH - 6 ATTEND
VONS 141.72 DISTRICT MEETING SUPPLIES
Adobe 52.99 SOFTWARE LICENSE
A1 Security Cameras 68.62 SUNSHEILD FOR SECURITY CAMERA
ACWA-Assn Of Ca Water Agencies 375.00 ACWA SPRING CONFERENCE REGISTRATION - JONES, B
Home Depot 378.58 FACILITIES PAINTING SUPPLIES
Institute for Information Governance 299.00 IGP CRASH COURSE REGISTRATION - ARAMBARRI, T
Medii Kitchen 241.50 TEAM BUILDING MEETING - 9 ATTEND
Answer One Communications 474.00 AFTER HOURS PHONE SERVICE
Monoprice Inc 54.07 COMPUTER CORDS & ACCESSORIES
Tool Parts Direct 63.37 IMPACT TOOL PARTS
Harbor Freight Tools 16.96 TOOLS FOR UNIT# 174
Home Depot 336.47 FACILITIES PAINTING SUPPLIES
Home Depot 218.26 SOD FOR LANDSCAPE REPAIR
Carl's Jr Restaurant 71.51 FOOD FOR STAFF WORKING OT
Farmer Boys 28.41 FOOD FOR STAFF WORKING OT
Amazon Capital Services 132.87 EMPLOYEE SERVICE RECOGNITION
Lamp Post Pizza 100.80 NEW HIRE LUNCH - 8 ATTEND
8-Jun-21
Cal Card Credit Card
U S Bank
Page 109 of 172
CalCard US Bank (99.00) REFUND FOR TEST CANCELLATION
Chefs Toys 1,022.44 EOC SUPPLIES
Donut Star 13.80 SAFETY MEETING SUPPLIES
EL CANTARITO RESTAURANT 67.04 LUNCH MEETING - 3 ATTEND
Liebert Cassidy Whitmore 75.00 EXEMPT EMPLOYEES WEBINAR
Society of California Archvists 65.00 MEMBERSHIP RENEWAL - ARAMBARRI, T
Lands End 340.85 UNIFORM EXPENSE
Costco 3,653.09 EMPLOYEE SERVICE RECOGNITION
FedEx Office 20.26 SHIPPING EXPENSE
BBQ Galore 103.39 SUPPLIES FOR STAFF EVENT
Gem Meats 113.98 DISTRICT MEETING SUPPLIES
Home Depot 77.20 FACILITIES REPAIR PARTS
SSL Guru 199.00 ANNUAL SSL LICENSING
Chefs Toys 19.92 OFFICE EXPENSE
Adobe 14.99 ACROBAT ADOBE PRO TRIAL
Blackgold Golf Club 60.26 LUNCH MEETING WITH CITY - LINDSEY, T
Costco 377.27 OFFICE EXPENSE
Donut Star 46.00 SAFETY MEETING SUPPLIES
Home Depot 107.62 (4) 5-GAL COOLERS
Home Depot 80.74 ELECTRICAL CORD FOR UNIT# 207
Home Depot 37.68 FACILITIES REPAIR PARTS
Home Depot 255.24 WAREHOUSE MATERIALS
Smart & Final 187.17 DISTRICT MEETING SUPPLIES
Time Warner Cable 215.57 INTERNET & DISTRICT TV SERVICES
ARMA International 739.19 ARMA CONFERENCE REGISTRATION - MILLEN, M
ARMA International 527.69 ARMA CONFERENCE REGISTRATION - ARAMBARRI, T
Costco 420.47 DISTRICT MEETING SUPPLIES
Home Depot 25.60 BOX CANYON METER PARTS
Home Depot 26.14 ELECTRICAL SUPPLIES FOR PRODUCTION
Smart & Final 29.72 DISTRICT MEETING SUPPLIES
Crab Cooker Canning 99.72 LUNCH MEETING - 3 ATTEND
76 Gas Station 20.00 PROPANE REFILL
Amazon Capital Services 82.09 EMPLOYEE SERVICE RECOGNITION
Amazon Capital Services 5.43 EMPLOYEE SERVICE RECOGNITION
Amazon Capital Services 13.18 EMPLOYEE SERVICE RECOGNITION
Amazon Capital Services 9.78 EMPLOYEE SERVICE RECOGNITION
Flappy Jacks 43.68 BREAKFAST MEETING - 2 ATTEND
Schorr Metals, Inc.114.82 WATERLINE REPAIR PARTS
CALIFORNIA SECRETARY OF STATE 20.00 LEGAL FILING FEE
Home Depot 526.29 (2) WORK BENCHES FOR MECHANIC SHOP
Sunrise Medical Group 7,040.00 J20-15 TESTING EXPENSE
Time Warner Cable 221.94 INTERNET & DISTRICT TV SERVICES
Time Warner Cable 2,035.23 INTERNET & DISTRICT TV SERVICES
Harrington Industrial 231.26 PRODUCTION PARTS
ExxonMobil 20.26 FOOD FOR STAFF WORKING OT
North American Recycling and Crushing, LLC 200.00 DISPOSAL-OLD ROAD MATERIAL
North American Recycling and Crushing, LLC 200.00 DISPOSAL-OLD ROAD MATERIAL
Calif Water Environ Assn (CWEA)106.00 COLLECTIONS 4 RENEWAL-MCDONALD, J
Carl's Jr Restaurant 75.48 FOOD FOR STAFF WORKING OT
Farmer Boys 32.50 FOOD FOR STAFF WORKING OT
Amazon Capital Services 21.74 EMPLOYEE SERVICE RECOGNITION
91 Express Lanes 30.00 OFFICE EXPENSE
BBQ Galore 73.23 REPLENISH EMERGENCY PROVISIONS
Gem Meats 165.84 REPLENISH EMERGENCY PROVISIONS
28,821.10
Page 110 of 172
BOD Vendor Name Document Amount Description
J. Wayne Miller UCI Marketplace 10.00 CEE QUARTERLY MEETING REGISTRATION - MILLER
Brooke Jones ACWA-Assn Of Ca Water Agencies 375.00 ACWA SPRING CONFERENCE REGISTRATION - JONES, B
Tom Lindsey Blackgold Golf Club 60.26 LUNCH MEETING WITH CITY - LINDSEY, T
445.26
8-Jun-21
Cal Card Credit Card
Board of Directors
Page 111 of 172
ITEM NO. 8.3.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
Kelly McCann, Senior Accountant
SUBJECT:Budget to Actual Reports for the Month Ending April 30, 2021
RECOMMENDATION:
That the Board of Directors receive and file the Budget to Actual Reports for the Month Ending
April 30, 2021.
SUMMARY:
Presented are the Budget to Actual Reports for the Month Ending April 30, 2021 for the
District.
BACKGROUND:
For the month-ending April 30, 2021, staff is presenting Budget to Actual Reports for the
District as a whole, as well as the individual water and sewer funds.
Cumulative Volumetric Water Revenue, as reported through the month ending April 30, 2021,
reflects an average increase of 9.96% as compared to the prior year for the same reporting
period. Landscape/Irrigation customer connections have the highest increase in consumption
sales of 16.57% as compared to reported results from the prior year.
Total Variable Costs results, as reported through the month ending April 30, 2021, reflect a
11.93% increase when compared to prior year for the same reporting period. The increase in
costs is predominantly reflective of the increase in water usage, which as reported, is 4.14%
higher than historic consumption
STRATEGIC PLAN INITIATIVES:
G2 3B – Regularly assess net position and steps to meet strategic goals.
ATTACHMENTS:
1.Financial Reports and Graphs April 2021
Page 112 of 172
FY21 Annual
Budget
YTD Actuals thru
April 2021
YTD % of
Budget
Water Revenue (Residential)15,424,507$ 13,984,914$ 90.67%
Water Revenue (Commercial & Fire Det.)1,889,796 1,406,561 74.43%
Water Revenue (Landscape/Irrigation)3,704,520 3,522,568 95.09%
Service Charges 11,560,123 9,608,488 83.12%
PFAS Impact Fee - 443,965 100.00%
Other Operating Revenue 1,812,269 530,138 29.25%
Total Operating Revenue 34,391,215 29,496,634 85.77%
Revenue (Non-Operating):
Interest 600,000 177,891 29.65%
Property Taxes 1,950,000 1,932,381 99.10%
Other Non-Operating Revenue 601,646 1,083,726 180.13%
Total Non-Operating Revenue 3,151,646 3,193,998 101.34%
Total Revenue 37,542,861$ 32,690,632$ 87.08%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
Water-Related Costs 16,035,929$ 12,184,665$ 75.98%
Fixed Costs 1,182,773 638,634 53.99%
Power-Related Costs 1,222,191 1,466,141 119.96%
Variable Water Costs Related Expenses Total 18,440,894 14,289,440 77.49%
Salary Related Expenses 10,620,399 7,553,904 71.13%
Reduction for Capital Project Labor (463,752) (222,237) 47.92%
Salary Related Expenses Total 10,156,647 7,331,667 72.19%
Supplies & Services
Communications 205,891 126,373 61.38%
Contractual Services 466,976 515,663 110.43%
Data Processing 274,924 193,125 70.25%
Dues & Memberships 85,670 69,695 81.35%
Fees & Permits 288,635 291,430 100.97%
Board Election 84,165 - 0.00%
Insurance 287,343 196,657 68.44%
Materials 621,700 562,843 90.53%
District Activities, Emp Recognition 40,130 12,469 31.07%
Maintenance 528,780 307,572 58.17%
Non-Capital Equipment 137,980 122,233 88.59%
Office Expense 32,003 24,625 76.95%
Professional Services 988,918 510,783 51.65%
Training 48,353 21,752 44.99%
Travel & Conferences 42,570 3,142 7.38%
Uncollectible Accounts 8,330 7,012 84.19%
Utilities 163,838 149,254 91.10%
Vehicle Expenses 285,260 360,896 126.51%
Supplies & Services Sub-Total 4,591,463 3,475,524 75.70%
Total Operating Expenses 33,189,004 25,096,631 75.62%
Expenses (Non-Operating)
Other Expense 117,994 446,227 378.18%
Total Non-Operating Expenses 117,994 446,227 378.18%
Total Expenses 33,306,998$ 25,542,858$ 76.69%
Net Revenues 4,235,863 7,147,773 168.74%
Less: Debt Service (Principal & Interest)2,729,381 2,767,477 101.40%
Transfer to/(from) Reserves 1,506,482 4,380,296 290.76%
Net Total -$ -$
Yorba Linda Water District
Water Enterprise
FY20 ProForma - Use of Funds
April 2021
Page 113 of 172
Yorba Linda Water District
Summary Financial Report
Water & Sewer Funds
For Period Ending April 30, 2021
Annual YTD April YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual
Budget Budget Actual Actual (Under) Over Apr Actual Actual (thru vs vs
FY21 FY21 FY21 FY21 YTD Budget FY20 Apr 2020)PY Actual $PY Actual %
Revenue (Operating):
Water Revenue (Residential)$15,424,507 $13,331,401 1,385,603$ 13,984,914$ 653,513$ 927,764$ $12,341,198 1,643,716 13.32%
Water Revenue (Commercial & Fire Det.)1,889,796 1,633,351 137,012 1,406,561 (226,790)103,554 1,406,666 (105)-0.01%
Water Revenue (Landscape/Irrigation)3,704,520 3,201,817 269,947 3,522,568 320,751 110,460 3,021,894 500,674 16.57%
Water Revenue (Service Charge)11,560,123 9,633,436 971,682 9,608,488 (24,948)922,462 9,129,174 479,314 5.25%
Water Revenue (PFAS Impact Fee)- - 148,086 443,965 443,965 - - 443,965 100.00%
Sewer Charge Revenue 2,447,582 2,039,652 204,195 2,039,079 (573)198,094 1,998,418 40,661 2.03%
Locke Ranch Assessments 298,525 248,771 95,719 294,888 46,117 104,878 317,786 (22,898) 0.00%
Other Operating Revenue 1,852,814 720,996 48,737 575,837 (145,159)33,328 773,764 (197,927)-25.58%
Total Operating Revenue:37,177,867 30,809,423 3,260,981 31,876,300 1,066,877 2,400,540 28,988,900 2,887,400 9.96%
Revenue (Non-Operating):
Interest 705,000 587,500 41,291 237,440 (350,060)116,100 584,135 (346,695)-59.35%
Property Tax 1,950,000 1,891,500 609,368 1,932,381 40,881 611,317 1,851,751 80,630 4.35%
Other Non-Operating Revenue 620,846 517,372 91,580 1,101,396 584,024 212,211 690,578 410,818 59.49%
Total Non-Operating Revenue:3,275,846 2,996,372 742,239 3,271,217 274,845 939,628 3,126,464 144,753 4.63%
Total Revenue 40,453,713 33,805,795 4,003,220 35,147,517 1,341,722 3,340,168 32,115,364 3,032,153 9.44%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)18,440,894 14,433,465 1,898,999 14,289,440 (144,025)1,286,293 12,766,603 1,522,837 11.93%
Salary Related Expenses 11,895,521 9,651,514 1,063,449 8,554,694 (1,096,820)1,003,012 8,427,595 127,099 1.51%
Supplies & Services 5,789,694 4,350,289 431,525 4,170,400 (179,890)380,563 4,219,929 (49,530) -1.17%
Total Operating Expenses 36,126,109 28,435,268 3,393,973 27,014,534 (1,420,734)2,669,868 25,414,127 1,600,407 6.30%
Expenses (Non-Operating):
Interest on Long Term Debt 1,236,960 1,065,800 106,576 1,080,703 14,903 107,685 1,084,680 (3,977) -0.37%
Other Expense 150,853 124,565 (133,769) 442,975 318,410 37,611 200,790 242,185 120.62%
Total Non-Operating Expenses:1,387,813 1,190,365 (27,193) 1,523,678 333,313 145,296 1,285,470 238,208 18.53%
Total Expenses 37,513,922 29,625,633 3,366,780 28,538,212 (1,087,421)2,815,164 26,699,597 1,838,615 6.89%
Net Position Before Capital Contributions 2,939,792 4,180,162 636,440 6,609,305 2,429,143 525,004 5,415,767 1,193,537 22.04%
Capital Contributions (Non-Cash - - 973,336 973,336 654,118 803,902 169,434 21.08%
Net Position Before Depreciation 2,939,792 4,180,162 636,440 7,582,641 3,402,479 1,179,122 6,219,669 1,362,972 21.91%
Depreciation & Amortization 7,775,155 6,479,296 648,910 6,557,775 78,479 642,048 6,470,929 86,846 1.34%
Total Net Position ($4,835,363)($2,299,134)($12,470)$1,024,866 $3,324,000 $537,074 ($251,260)$1,276,125 507.89%
(680,752) (567,293) (41,807) (254,230) 313,063 (40,618) (219,703)(34,527) 15.72%
(With April 30, 2020 for comparison purposes)
Page 114 of 172
Annual YTD April YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR
Budget Budget Actual Actual (Under)Over Apr Actual Actual (thru vs vs
FY21 FY21 FY21 FY21 YTD Budget FY20 Apr 2020) PY Actual $PY Actual %
Revenue (Operating):
Water Revenue (Residential)15,424,507$ $13,331,401 1,385,603$ 13,984,914$ 653,513$ 927,764$ 12,341,198$ 1,643,716$ 13.32%
Water Revenue (Commercial & Fire Det.)1,889,796 1,633,351 137,012 1,406,561 (226,790) 103,554 1,406,666 (105) -0.01%
Water Revenue (Landscape/Irrigation)3,704,520 3,201,817 269,947 3,522,568 320,751 110,460 3,021,894 500,674 16.57%
Water Revenue (Service Charge)11,560,123 9,633,436 971,682 9,608,488 (24,948) 922,462 9,129,174 479,314 5.25%
Water Revenue (PFAS Impact Fee)- - 148,086 443,965 443,965 - - 443,965 100.00%
Other Operating Revenue 1,812,269 687,208 46,453 530,138 (157,070) 32,126 708,163 (178,025) -25.14%
Total Operating Revenue:34,391,215 28,487,213 2,958,783 29,496,634 1,009,421 2,096,366 26,607,095 2,889,539 10.86%
Revenue (Non-Operating):
Interest 600,000 500,000 33,882 177,891 (322,109) 102,060 501,686 (323,795) -64.54%
Property Tax 1,950,000 1,891,500 609,368 1,932,381 40,881 611,317 1,851,751 80,631 4.35%
Other Non-Operating Revenue 601,646 501,372 88,994 1,083,726 582,354 185,906 659,234 424,491 64.39%
Total Non-Operating Revenue:3,151,646 2,892,872 732,244 3,193,998 301,126 899,283 3,012,671 181,327 6.02%
Total Revenue 37,542,861 31,380,085 3,691,027 32,690,632 1,310,547 2,995,649 29,619,766 3,070,866 10.37%
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)18,440,894 14,433,465 1,898,999 14,289,440 (144,025) 1,286,293 12,766,603 1,522,837 11.93%
Salary Related Expenses 10,156,647 8,252,684 902,050 7,331,667 (921,017) 895,000 7,618,782 (287,115) -3.77%
Supplies & Services:
Communications 205,891 151,576 27,755 126,373 (25,203) 24,436 163,532 (37,159) -22.72%
Contractual Services 466,976 466,976 58,407 515,663 48,687 24,278 324,705 190,958 58.81%
Data Processing 274,924 219,103 11,003 193,125 (25,978) 7,669 197,408 (4,283) -2.17%
Dues & Memberships 85,670 71,392 1,767 69,695 (1,697) 2,820 78,010 (8,315) -10.66%
Fees & Permits 288,635 288,635 18,420 291,430 2,795 17,739 268,531 22,899 8.53%
Board Election 84,165 - - - - - - - 0.00%
Insurance 287,343 219,453 18,474 196,657 (22,796) 23,519 238,277 (41,620) -17.47%
Materials 621,700 535,583 64,044 562,843 27,260 20,145 742,331 (179,488) -24.18%
District Activities, Emp Recognition 40,130 27,942 726 12,469 (15,473) 535 30,509 (18,040) -59.13%
Maintenance 528,780 355,650 18,677 307,572 (48,078) 110,410 492,103 (184,531) -37.50%
Non-Capital Equipment 137,980 119,983 17,178 122,233 2,250 4,596 116,783 5,450 4.67%
Office Expense 32,003 26,669 1,323 24,625 (2,044) 1,241 30,437 (5,812) -19.10%
Professional Services 988,918 588,598 49,024 510,783 (77,815) 74,036 692,608 (181,825) -26.25%
Training 48,353 30,294 7,283 21,752 (8,542) 870 31,726 (9,974) -31.44%
Travel & Conferences 42,570 24,975 277 3,142 (21,833) 258 53,165 (50,023) -94.09%
Uncollectible Accounts 8,330 6,941 (217) 7,012 71 173 3,730 3,283 88.03%
Utilities 163,838 146,531 11,678 149,254 2,723 8,068 161,106 (11,852) -7.36%
Vehicle Equipment 285,260 272,716 26,200 360,896 88,179 35,431 331,143 29,752 8.98%
Supplies & Services Sub-Total 4,591,463 3,553,017 332,019 3,475,524 (77,493) 356,224 3,956,104 (480,580) -12.15%
Total Operating Expenses 33,189,004 26,239,165 3,133,068 25,096,631 (1,142,535) 2,537,517 24,341,489 755,142 3.10%
Expenses (Non-Operating):
Interest on Long Term Debt 1,236,960 1,065,800 106,576 1,080,703 14,903 107,685 1,084,680 (3,977) -0.37%
Other Expense 117,994 117,994 (124,814) 446,227 328,234 30,195 160,516 285,711 177.99%
Total Non-Operating Expenses:1,354,953 1,183,793 (18,238) 1,526,930 343,137 137,880 1,245,196 281,734 22.63%
Total Expenses 34,543,957 27,422,959 3,114,830 26,623,561 (799,398) 2,675,397 25,586,685 1,036,876 4.05%
Net Position Before Capital Contributions 2,998,904 3,957,126 576,197 6,067,071 2,109,945 320,252 4,033,081 2,033,990 50.43%
Capital Contributions (Non-Cash Transaction -- - 368,337 368,337 248,334 330,144 38,193 11.57%
GASB 34 Compliant)
Net Position Before Depreciation 2,998,904 3,957,126 576,197 6,435,408 2,478,282 568,586 4,363,225 2,072,183 47.49%
Depreciation & Amortization 6,335,693 5,279,744 525,030 5,328,093 48,349 520,968 5,272,715 55,378 1.05%
Total Net Position (3,336,789)$ (1,322,618)$ 51,167 1,107,315 2,429,933$ 47,618$ (909,490)$ 2,016,805$ 221.75%
Capital - Direct Labor (463,752) (386,460)(32,894) (222,237) 164,223 (38,411) (191,302) (30,935) 16.17%
Yorba Linda Water District
Water Fund
For Period Ending April 30, 2021
(With April 30, 2020 for comparison purposes)
Page 115 of 172
$26,606,963 $25,999,256
$28,661,951
$27,645,452
$29,619,766
$32,690,632
10.37%
$19,388,965
$21,223,457
$23,303,309 $23,415,881
$25,586,685
$26,623,561
4.05%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Apr. 2020 Apr. 2021
Water Revenues & Expenses -April
(excludes Depreciation, Special Items, and Contributed Capital )
Total Revenue Total Expenses
Page 116 of 172
Annual YTD April YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR
Budget Budget Actual Actual (Under)Over Apr Actual Actual (thru vs vs
FY21 FY21 FY21 FY21 YTD Budget FY20 Apr 2020)PY Actual $PY Actual %
Revenue (Operating):
Sewer Charge Revenue $2,447,582 $2,039,652 204,195$ 2,039,079$ ($573)198,094$ $1,998,418 40,661$ 2.03%
Locke Ranch Assessments 298,525 $248,771 95,719 294,888 46,117 104,878 317,786 (22,898) -7.21%
Other Operating Revenue 40,545 33,788 2,285 45,699 11,912 1,202 65,601 (19,902) -30.34%
Total Operating Revenue:2,786,652 2,322,210 302,199 2,379,666$ 57,456 304,174 2,381,805 (2,139) -0.09%
Revenue (Non-Operating):
Interest 105,000 87,500 7,408 59,550$ (27,950)14,041 82,449 (22,899)-27.77%
Other Non-Operating Revenue 19,200 16,000 2,586 17,670 1,670 26,305 31,344 (13,674)-43.63%
Total Non-Operating Revenue:124,200 103,500 9,994 77,220$ (26,280)40,346 113,793 (36,573) -32.14%
Total Revenue 2,910,852 2,425,710 312,193 2,456,886$ 31,176 344,520 2,495,598 (38,713) -1.55%
Expenses (Operating):
Salary Related Expenses 1,738,874 1,398,830 161,400 1,223,027 (175,803)108,012 808,812 414,215 51.21%
Supplies & Services:
Communications 37,134 30,945 4,858 22,031 (8,914)1,839 8,401 13,630 162.24%
Contractual Services 66,878 66,878 9,282 79,444 12,566 1,689 21,614 57,831 267.57%
Data Processing 41,457 34,548 1,942 28,093 (6,455)384 10,616 17,477 164.63%
Dues & Memberships 15,075 12,563 298 12,199 (364)212 5,872 6,327 107.73%
Fees & Permits 35,565 29,638 2,745 31,138 1,501 1,207 14,679 16,459 112.12%
Board Election 6,335 5,279 - - (5,279) - - 0 0.00%
Insurance 50,708 42,257 3,260 34,850 (7,407)1,770 21,918 12,932 59.00%
Materials 75,800 50,167 1,312 43,049 (7,118)269 12,403 30,646 247.09%
District Activities, Emp Recognition 6,941 5,784 128 2,197 (3,587)40 2,194 3 0.14%
Maintenance 180,820 90,783 13,078 70,401 (20,382)11,913 48,654 21,747 44.70%
Non-Capital Equipment 48,691 23,576 3,078 17,354 (6,222)1,010 18,421 (1,067)-5.79%
Office Expense 5,572 4,643 233 4,501 (142)93 2,242 2,259 100.76%
Professional Services 482,272 292,893 50,154 257,416 (35,477)2,275 38,922 218,494 561.36%
Training 14,832 12,360 750 4,624 (7,736)107 7,210 (2,586)-35.87%
Travel & Conferences 5,630 4,691 31 481 (4,210)(36) 5,180 (4,699)-90.71%
Uncollectible Accounts 1,470 1,225 (43) 1,894 669 16 328 1,567 478.32%
Utilities 28,913 24,094 3,170 28,357 4,263 607 11,867 16,490 138.95%
Vehicle Equipment 94,140 64,950 5,231 56,851 (8,099)942 33,308 23,542 70.68%
Supplies & Services Sub-Total 1,198,231 797,272 99,507 694,880 (102,393) 24,337 263,829 431,051 163.38%
Total Operating Expenses 2,937,105 2,196,102 260,907 1,917,907 (278,196) 132,349 1,072,641 845,266 78.80%
Expenses (Non-Operating):
Other Expense 32,859 6,571 (8,955) (3,252) (9,823) 7,416 40,274 (43,526) -108.07%
Total Non-Operating Expenses:32,859 6,571 (8,955) (3,252) (9,823) 7,416 40,274 (43,526) -108.07%
Total Expenses 2,969,964 2,202,673 251,952 1,914,655 (288,018) 139,765 1,112,915 801,740 72.04%
Net Position Before Capital Contributions (59,112) 223,037 60,241 542,231 319,194 204,755 1,382,683 (840,453) -60.78%
Capital Contributions (Non-Cash Transaction -- - - 604,999 604,999 405,784 473,758 131,241 27.70%
GASB 34 Compliant)
Net Position Before Depreciation (59,112) 223,037 60,241 1,147,230 924,193 610,539 1,856,441 (709,212) -38.20%
Depreciation & Amortization 1,439,462 1,199,552 123,880 1,229,682 30,130 121,080 1,198,214 31,468 2.63%
Total Net Position (1,498,574) (976,515) (63,639) (82,452) 894,062 489,459 658,227 (740,680) -112.53%
Capital - Direct Labor (217,000)(180,833) (8,913) (31,993)148,840 (2,207) (28,401)(3,592)12.65%
Yorba Linda Water District
Sewer Fund
For Period Ending April 30, 2021
(With April 30, 2020 for comparison purposes)
Page 117 of 172
$1,687,971
$1,954,986
$2,065,471
$2,320,514
$2,495,598 $2,456,886
(-1.55%)
$1,065,586 $1,137,801 $1,174,559
$1,087,782 $1,112,915
$1,914,655
72.04%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Apr. 2020 Apr. 2021
Sewer Revenues & Expenses -April
(excludes Depreciation, Special Items, and Contributed Capital)
Total Revenue Total Expenses
Page 118 of 172
1,460,113
1,505,340 1,358,893
1,340,186
1,143,948
1,518,953
939,601
1,019,271
788,116
1,200,582 1,311,137
1,370,194
1,671,801 1,729,514
1,512,043
1,307,477
981,384 1,019,234
657,883
460,667
590,007
945,974
1,132,782
1,305,692
1,660,561
1,492,928
1,435,706
1,361,053
1,100,471
1,058,481
772,447
1,367,226
1,231,436 1,286,293
2,065,064 2,084,721
1,469,440
1,556,303
1,448,941
1,392,832 1,103,786
1,636,877
915,454
1,372,040
1,494,768
1,898,999
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar April May June
Variable Costs Analysis
FY18 Var Costs FY19 Var Costs FY20 Var Costs FY21 Var Costs
Page 119 of 172
ITEM NO. 8.4.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
Kelly McCann, Senior Accountant
SUBJECT:Cash and Investment Report for Period Ending April 30, 2021
RECOMMENDATION:
That the Board of Directors receive and file the Cash and Investment Report for Period Ending
April 30, 2021.
BACKGROUND:
Government Code Section 530607, et. seq., requires the person delegated to invest funds to
provide a monthly report of investments to the legislative body. The Cash & Investment
Portfolio Report presents the market value and percent yield for all District investments by
institution. The Cash & Investment Summary Report includes budget and actual interest and
average term portfolio information as well as market value broken out by reserve categories.
The Fair Value Measurement Report categorizes investments with the fair value hierarchy
established by generally accepted accounting principles. The Unrestricted Reserves and Days
in Cash Graph presents Water Unrestricted Reserve Balances and Days in Cash at a
particular point in time for the last five years.
The average portfolio yield for the month ending April 30, 2021, is .45%.
The District's Total Cash and Investment balance as of April 30, 2021 resulted in an overall
increase from the previous month by approximately $309,704. Large balance changes include
increases in the in Water Operating Fund of $540,430 and Sewer Operating Fund of $5,573;
and a decrease in the Water Capital Project fund of $272,993. The PARS fund increased by
$44,971 due to an increase in the value of investments.
STRATEGIC PLAN INITIATIVES:
G2 4C - Manage cash flow to maximize investment income.
ATTACHMENTS:
1.Investment Reports and Graphs for April 2021
Page 120 of 172
Market %Date of Percent
Value Par of Total Institution Maturity Yield
Checking Account:
487,058$ 487,058$ Wells Fargo Bank
487,058$ 487,058$ 1.17%Total 0.00%
Money Market Accounts:
0.34$ 0$ US Bank (Revenue Bonds)0.00%
1,362,978 1,362,978 US Bank (Money Market)0.01%
1,671,309 1,671,309 Public Agency Retirement Svcs. (PARS)
3,034,287$ 3,034,287$ 7.28%Total 0.01%
Certificates of Deposits:
249,655 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.65%
180,068 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 2.23%
249,307 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.59%
251,878 247,000 PrivateBank & Tr Chicago Ill CTF 03/30/22 2.16%
245,875 245,000 Goldman Sachs Bank 06/28/21 2.19%
245,875 245,000 Morgan Stanley Private Bank 06/28/21 2.19%
250,985 245,000 Capital One Bank USA 06/27/22 2.15%
250,985 245,000 Capital One Bank NA 06/27/22 2.15%
251,127 245,000 Ally Bank 06/27/22 2.20%
251,127 245,000 Sallie Mae Bank 06/27/22 2.20%
251,059 245,000 Synchrony 05/17/22 2.39%
251,752 245,000 Morgan Stanley Bank NA 06/13/22 2.48%
2,929,694$ 2,884,000$ 7.03%Total 2.13%
Pooled Investment Accounts:
35,215,848$ 35,215,848$ Local Agency Investment Fund 0.34%
35,215,848$ 35,215,848$ 84.52%0.34%
41,666,887$ 41,621,193$ 100%Total Investments 0.45%
Per Government Code requirements, the Investment Report is in compliance with the Yorba
Linda Water District's Investment Policy, and there are adequate funds available to meet
budgeted and actual expenditures for the next six months.
4/30/21
Yorba Linda Water District
Cash & Investment Portfolio Report
April 30, 2021
________________________________
Kelly McCann, Senior Accountant
Page 121 of 172
Below is a chart summarizing the yields as well as terms and maturities for the month of April 2021:
Average # of
Month Portfolio Days to
of 2021 Yield Maturity
April 0.45%20
Below are charts comparing operating fund interest for current and prior fiscal years.
Actual Interest 4/30/2020 4/30/2021
Monthly - April 116,100$ 41,291$
Year-to-Date 584,135$ 237,440$
Budget 2019/2020 2020/2021
Interest Budget, April YTD 676,922$ 587,500$
Interest Budget, Annual 812,306$ 705,000$
Interest earned on investments is recorded in the fund that owns the investment.
The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds
is as follows:
The table below displays the District's Cash and Investment balance of $39.72 million which is allocated between the established
reserve funds, Wells Fargo Checking Account, and restricted funds held at U.S. Bank for the Bond payment and PARS for
the pension/OPEB payments. The number of Days in Cash are 351 for the Un-Restricted Water Reserve balance and 896 for the
Un-Restricted Sewer Reserve balances, as of April 30, 2021.
FY21 Reserve Cash and
Requirements Investments
March 2021 % Alloc April 2021 % Alloc "Target Available for
Fund Description Balance 3/31/2021 Balance 4/30/2021 Levels"CY Obligations
Water Operating Reserve 14,050,892$ 36.81%15,544,446$ 39.34%12,427,055$ 3,117,391$
Water Emergency Reserve 7,313,065$ 19.16%7,320,339$ 18.53%7,115,108 205,231
Water Capital Project Reserve 5,056,786$ 13.25%4,783,793$ 12.11%7,314,221 (2,530,428)
Rate Stabilization Reserve 4,231,446$ 11.08%4,233,030$ 10.71%4,093,400 139,630
Un-Restricted Water Reserve Balance 30,652,189 31,881,608$ 30,949,784 931,824
Conservation Reserve 105,655$ 0.28%105,769$ 0.27%- 105,769
Employee Liability Reserve 308,708 0.81%309,040 0.78%400,000 (90,960)
Restricted Reserve Balance 414,363 414,809$ 400,000 14,809
Sewer Operating Reserve 3,780,226$ 9.90%3,900,385$ 9.87%1,335,465 2,564,920
Sewer Emergency Reserve 1,963,631 5.14%1,962,959 4.97%1,914,347 48,612
Sewer Capital Project Reserve 1,365,668 3.58%1,348,760 3.41%1,909,045 (560,285)
Un-Restricted Sewer Reserve Balance 7,109,525 7,212,103$ 5,158,857 2,053,246
Total Reserve Balances 38,176,077$ 100.00%39,508,521$ 100.00%36,508,641$ 2,999,880$
Water Operating 1,397,429 444,306
Sewer Operating 157,338 42,752
1,554,767 487,058
Rev. Bond 2012A & 2017A-Principal & Interest 1 0
Public Agency Retirement Svc. -PARS (Restricted)1,626,337 1,671,309
Total Cash and Investments 41,357,183$ 41,666,887$
Cash & Investment Summary Report
Cash & Investment Summary Comparison Between Current and Previous Month
Wells Fargo Bank Checking
US Bank Held (Restricted)
Page 122 of 172
Checking Account:487,058$ 1.17%
Money Market Accounts:3,034,287$ 7.28%
Certificates of Deposit:2,929,694$ 7.03%
Pooled Investment Accounts:35,215,848$ 84.52%
Total 41,666,887$ 100.00%
Checking Account:
1.17%
Money Market Accounts:
7.28%
Certificates of Deposit:
7.03%
Pooled Investment Accounts:
84.52%
INVESTMENT BALANCES (AS OF 4 -30-2021)
Checking Account:Money Market Accounts:Certificates of Deposit:Pooled Investment Accounts:
Page 123 of 172
Yorba Linda Water District
Fair Value Measurement Report
April 30, 2021
Quoted Observable Unobservable
Prices Inputs Inputs
Investments Level 1 Level 2 Level 3 Total
Local Agency Investment Fund - 35,215,848 - 35,215,848
Negotiable Certificates of Deposit - 2,929,694 - 2,929,694
Total Investments -$ 38,145,542$ -$ 38,145,542$
Page 124 of 172
Transaction
Date Transaction Description
Water Operating
Pension
Water Operating
OPEB
Sewer Operating
Pension
Sewer Operating
OPEB Account Total
Beginning Balance as of 7/1/20 1,277,088.36 544,249.94 140,341.67 64,308.24 2,025,988.21
7/15/2020 Distribution to CalPERS (564,670.84)(66,721.16)1,394,596.21
7/31/2020 Management Fees (613.23)(261.33)(67.39)(30.88) 1,393,623.38
7/31/2020 Investment Gain/(Loss) 27,302.97 17,759.71 3,000.37 2,098.48 1,443,784.91
8/31/2020 Management Fees (512.47)(268.93)(53.08)(31.78) 1,442,918.65
8/31/2020 Investment Gain/(Loss) 21,644.28 16,450.81 2,241.82 1,943.82 1,485,199.38
9/30/2020 Management Fees (363.49)(276.28)(37.65)(32.65) 1,484,489.31
9/30/2020 Investment Gain/(Loss) (12,478.12)(9,485.83)(1,292.43)(1,120.84) 1,460,112.09
10/31/2020 Management Fees (370.27)(281.46)(38.35)(33.26) 1,459,388.75
10/31/2020 Investment Gain/(Loss) (6,461.91)(4,912.31)(669.30)(580.44) 1,446,764.79
11/30/2020 Mangement Fees (154.29)(117.28)(15.97)(13.86)1,446,463.38
11/30/2020 Investment Gain/(Loss) 53,115.96 40,373.94 5,499.41 4,773.07 1,550,225.76
12/31/2020 Mangement Fees (595.00)(452.26)(61.60)(53.47)1,549,063.43
12/31/2020 Investment Gain/(Loss) 22,105.52 16,802.61 2,288.71 1,986.43 1,592,246.70
1/31/2021 Mangement Fees (169.80)(129.08)(17.59)(15.25)1,591,914.98
1/31/2021 Investment Gain/(Loss) (1,582.14)(1,202.72)(163.86)(142.12)1,588,824.14
2/28/2021 Mangement Fees (633.04)(481.23)(65.57)(56.86)1,587,587.44
2/28/2021 Investment Gain/(Loss) 13,036.62 9,910.30 1,350.23 1,171.05 1,613,055.64
3/31/2021 Mangement Fees (406.76) (309.20) (42.13) (36.54) 1,612,261.01
3/31/2021 Investment Gain/(Loss) 7,205.03 5,477.19 746.24 647.21 1,626,336.68
4/30/2021 Mangement Fees (411.78)(313.03)(42.65)(36.99)1,625,532.23
4/30/2021 Investment Gain/(Loss) 23,431.91 17,812.65 2,426.89 2,104.83 1,671,308.51
Account Balance by Account Type 855,507.51 650,346.21 88,606.60 76,848.19 1,671,308.51$
51.19%38.91%5.30%4.60%100%
Pension OPEB Total
Initial Contribution as of 12/28/2017 247,599.00$ - 247,599.00
Additional Contribution 6/26/19 1,105,248.00$ 587,339.00 1,692,587.00
Total Contributions =1,940,186.00
Total Distribution to CalPERS (631,392.00)$ - (631,392.00)
Total Gain (or Loss) from Inception 235,634.81$ 146,251.22 381,886.03
Total Management Fees from Inception (12,975.70)$ (6,395.82) (19,371.52)
Balance as of 3-31-21 = 944,114.11$ 727,194.40$ 1,671,308.51$
PARS (Public Agency Retirement Services) Funding Reconciliation
Page 125 of 172
$32,207,875
$26,675,034 $28,620,852
$29,758,858 $29,722,864
$31,881,608
439
377 391 379
356 351
60
110
160
210
260
310
360
410
460
$20,000
$5,020,000
$10,020,000
$15,020,000
$20,020,000
$25,020,000
$30,020,000
$35,020,000
Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Apr. 2020 Apr. 2021
Unrestricted Reserves & Days in Cash (Water)
Unrestricted Reserves (Water)Days in Cash (Water)
Page 126 of 172
ITEM NO. 8.5.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Delia Lugo
SUBJECT:Reimbursement of Costs Incurred Before Issuance of Tax-Exempt
Obligations for Funding of District's Capital Improvement Program
RECOMMENDATION:
That the Board of Directors adopt Resolution No. 2021-XX regarding intention to issue tax-
exempt obligations for the purpose of permitting the reimbursement of not-to-exceed
$30,000,000 for incurred costs related to the current capital improvement program which are
incurred before the issuance of tax-exempt obligations, and rescinding Resolution No. 2020-
01.
BACKGROUND:
The District is currently undertaking its current capital improvement program on a 1) pay-as-
you-go basis where the costs thereof are being paid by the District's water system reserve
funds or 2) a draw/reimbursement request from the District's Line of Credit in effect with Bank
of America. The District may elect to finance certain portions of its current capital improvement
program from tax-exempt obligations. Federal tax law allows the District to reimburse itself
from the proceeds of tax-exempt obligations for capital costs the District pays prior to the
issuance of such tax-exempt obligations. In order to reimburse itself, the Board of Directors
must adopt a resolution stating its intent to reimburse itself should tax-exempt obligations be
issued.
Stradling Yocca Carlson & Rauth, the District's bond counsel, has worked with staff to prepare
a resolution permitting reimbursement of not-to-exceed $35,000,000 for costs related to the
current capital improvement program which are incurred before tax-exempt obligations; if any,
are incurred. Costs that are eligible for reimbursement must have been paid no more than six
months before the adoption of the resolution, and the reimbursement must occur within three
years after the eligible costs are paid. The foregoing limitations do not apply to "soft" costs
such as preliminary studies and reports.
Adoption of the reimbursement resolution will allow for reimbursement of construction-related
costs incurred by the water system reserve funds or drawn from the Bank of America Line of
Credit, which will replenish reserve funds available for other approved projects.
Page 127 of 172
ATTACHMENTS:
1.Resolution No. 2021-XX - Intention to Issue Tax-Exempt Obligations
2.5-Year Water Capital Improvement Project Schedule
Page 128 of 172
Resolution No. 2021-XX Regarding Intention to Issue Tax-Exempt Obligations 1
RESOLUTION NO. 2021-XX
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
YORBA LINDA WATER DISTRICT REGARDING
INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS
WHEREAS, the Yorba Linda Water District (the “District”) is a county water district that
is duly organized and existing under and pursuant to Division 12 of the
California Water Code (Section 30000 et seq.); and
WHEREAS, the District desires to finance the costs of acquiring, constructing and
installing certain public facilities and improvements related to its water
system, as provided in Exhibit A attached hereto and incorporated herein
(the “Project”); and
WHEREAS, the District intends to finance the acquisition, construction and installation
of the Project or portions of the Project with the proceeds of the sale of
obligations the interest upon which is excluded from gross income for
federal income tax purposes (the “Obligations”); and
WHEREAS, the District desires to pay certain costs with respect to the Project prior to
the issuance of the Obligations from available moneys of the District and
to reimburse itself for such costs from a portion of the proceeds of the sale
of the Obligations.
NOW, THEREFORE, the Board of Directors of the Yorba Linda Water District hereby
finds, determines, declares and resolves as follows:
SECTION 1.The foregoing recitals are true and correct.
SECTION 2.The District reasonably expects, and hereby states its intention, to
reimburse itself for Project costs incurred prior to the issuance of the
Obligations with proceeds of the Obligations. Exhibit A describes either
the general character, type, purpose, and function of the Project or the
fund or account from which Project costs are to be paid and the general
functional purpose of the fund or account.
SECTION 3.The reasonably expected maximum principal amount of the Obligations
that is anticipated to be used for such reimbursement is $35,000,000.
SECTION 4.Except as described in Section 8 below, this resolution is being adopted
not later than 60 days after the payment of the original expenditures (the
“Expenditures Date or Dates”).
Page 129 of 172
Resolution No. 2021-XX Regarding Intention to Issue Tax-Exempt Obligations 2
SECTION 5.Except as described in Section 8 below, the expected date of issue of the
Obligations will be within 18 months of the later of: (a) the Expenditure
Date or Dates; or (b) the date that the Project is placed in service; provided
that the reimbursement may not be made more than three years after the
Expenditure Date or Dates.
SECTION 6.Proceeds of the Obligations to be used to reimburse the District for Project
costs are not expected to be used, within one year of reimbursement,
directly or indirectly to pay debt service with respect to any obligation
(other than to pay current debt service coming due within the next
succeeding one year period on any tax-exempt obligation of the District
(other than the Obligations)) or to be held as a reasonably required
reserve or replacement fund with respect to an obligation of the District or
any entity related in any manner to the District, or to reimburse any
expenditure that was originally paid with the proceeds of any obligation,
or to replace funds that are or will be used in such manner.
SECTION 7.This resolution is consistent with the budgetary and financial
circumstances of the District as of the date hereof. No moneys from
sources other than the Obligations are, or are reasonably expected to be,
reserved, allocated on a long-term basis or otherwise set aside by the
District (or any related party) pursuant to their budget or financial policies
with respect to the Project costs. To the best of our knowledge, this Board
of Directors is not aware of the previous adoption of official intents by the
District that have been made as a matter of course for the purpose of
reimbursing expenditures and for which tax exempt obligations have not
been issued.
SECTION 8.The limitations described in Sections 4 and 5 above do not apply to: (a)
costs of issuance of the Obligations; (b) an amount not in excess of the
lesser of $100,000 or five percent (5%) of the proceeds of the Obligations;
or (c) any preliminary expenditures, such as architectural, engineering,
surveying, soil testing, and similar costs other than land acquisition, site
preparation, and similar costs incident to commencement of construction,
not in excess of twenty percent (20%) of the aggregate issue price of the
Obligations that finances the Project for which the preliminary
expenditures were incurred.
SECTION 9.This resolution is adopted as official action of the District in order to comply
with Treasury Regulation § 1.150-2 and any other regulations of the
Internal Revenue Service relating to the qualification for reimbursement of
District expenditures incurred prior to the date of issue of the Obligations,
is part of the District’s official proceedings, and will be available for
inspection by the general public at the main administrative office of the
District.
Page 130 of 172
Resolution No. 2021-XX Regarding Intention to Issue Tax-Exempt Obligations 3
SECTION 10.This resolution shall take effect immediately.
PASSED AND ADOPTED this 8th day of June 2021 by the following called vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Phil Hawkins, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law, LLP
Page 131 of 172
EXHIBIT A
DESCRIPTION OF PROJECT
Upgrades, acquisitions, replacements, rehabilitation and construction of facilities
and equipment for the District’s water system, including but not limited to upgrades to
water storage reservoirs, pressure reducing stations, pipeline replacements, pumping
stations, well sites and disinfection facilities, treatment plant, advanced metering
infrastructure, and improvements to the District’s administrative headquarters facility.
Page 132 of 172
PROJECT NAME:PROJECT NAME FY22 FY23 FY24 FY25 FY26 TOTALElk Mountain BPS Generator ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Camino de Bryant Heli‐Hydrant ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Well 11 Abandonment ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Meter Replacement Program 1,029,489$ ‐$ ‐$ ‐$ ‐$ 1,029,489$ Hidden Hills BPS Upgrades 706,860$ ‐$ ‐$ ‐$ ‐$ 706,860$ Timber Ridge BPS Pump Replacement 3,179,400$ ‐$ ‐$ ‐$ ‐$ 3,179,400$ Upgrades at Water Treatment Plant Sites 2,661,500$ ‐$ ‐$ ‐$ ‐$ 2,661,500$ Well 22 Equipping 1,108,500$ ‐$ ‐$ ‐$ ‐$ 1,108,500$ Grandview Ave and Ridge Way Waterline Improvements 462,000$ ‐$ ‐$ ‐$ ‐$ 462,000$ BNSF Crossing‐Weir Canyon / YL Blvd 619,850$ ‐$ ‐$ ‐$ ‐$ 619,850$ Lakeview Reservoir Site Rehabilitation 10,000$ 244,000$ ‐$ ‐$ ‐$ 254,000$ BNSF Crossing‐Veteran's Village and Highland 24,000$ 196,000$ ‐$ ‐$ ‐$ 220,000$ Field Headquarters Rehabilitation107,800$ 207,900$ 200,200$ ‐$ ‐$ 515,900$ Resiliency Improvements to District Facilities (AWIA) 220,000$ 220,000$ 220,000$ 275,000$ 275,000$ 1,210,000$ Site and Security Upgrades at District Facilities (AWIA) 273,000$ 220,000$ 220,000$ 275,000$ 275,000$ 1,263,000$ Well Rehabilitation Project 165,000$ 165,000$ 165,000$ 165,000$ 165,000$ 825,000$ Lakeview BPS Piping 220,000$ ‐$ ‐$ ‐$ ‐$ 220,000$ Fairmont PRS ‐$ 534,600$ ‐$ ‐$ ‐$ 534,600$ Well 15 Abandonment ‐$ 80,000$ ‐$ ‐$ ‐$ 80,000$ Box Canyon Pump Replacement ‐$ 77,000$ ‐$ ‐$ ‐$ 77,000$ Waterline Replacement ‐$ 2,200,000$ 2,200,000$ 3,300,000$ 3,300,000$ 11,000,000$ PRS Replacements ‐$ 1,100,000$ 1,100,000$ 1,320,000$ 1,320,000$ 4,840,000$ Santiago BPS Rehab ‐$ ‐$ 1,581,800$ ‐$ ‐$ 1,581,800$ Well 23 Drilling & Equipping ‐$ ‐$ 146,300$ 1,143,000$ 110,000$ 1,399,300$ Elk Mountain BPS Rehab ‐$ ‐$ ‐$ ‐$ 825,000$ 825,000$ Springview BPS Rehab ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Lakeview BPS Chemical Feed System Rehab ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Water Only 10,787,399$ 5,244,500$ 5,833,300$ 6,478,000$ 6,270,000$ 34,613,199$ Page 133 of 172
ITEM NO. 8.6.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Delia Lugo, Finance Manager
SUBJECT:Appropriations Limit for Fiscal Year 2022
RECOMMENDATION:
That the Board of Directors approve Resolution No. 2021-XX adopting the appropriations limit
for Fiscal Year 2022.
SUMMARY:
In 1977, California voters passed Proposition 13 which limited property tax assessments to
1% of a property's market value, and limited assessed value increases to 2% per year.
Concurrent with the reduction of property taxes, the voters also passed Proposition 4, the
Gann Spending Limit Initiative, which added Article XIIIB to the California Constitution. Under
Article XIIIB, a government agency is restricted in the amount of annual appropriations from
the proceeds of taxes, except taxes to pay voter-approved bond debt service. If proceeds of
taxes exceed allowed appropriations, the excess proceeds must either be refunded to the
State Controller or returned to the taxpayers through revised tax rates or through revised fee
schedules.
BACKGROUND:
District staff performed the required calculation to determine the Appropriations Limit for FY22
in compliance with the terms of Article XIIIB of the California Constitution and the Government
Code Section 7900. The starting point for computing the Appropriations Limit is the
Appropriations Subject to Limitation in the Base Year of FY79. This number is multiplied by
the controlled factors each successive year to determine the current year's appropriation limit.
The State Department of Finance, Population Research Unit, provides inflation and population
figures each year. These two are multiplied together to determine the final percentage by
which the prior year's limit is increased or decreased.
The District's property tax revenue of $2,025,000 budgeted for FY22, is substantially lower
than the calculated limitation of $8,354,460. Therefore, there are no excess appropriations
that must be returned to the taxpayers within the District's service area.
Page 134 of 172
ATTACHMENTS:
1.Resolution No. 2021-XX - Adopting Appropriations Limit for FY22
2.FY22 Calculation and Supporting Documents
Page 135 of 172
Resolution No. 2021-XX Adopting the Appropriations Limit for FY22 1
RESOLUTION NO. 2021-XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2022
WHEREAS,under the terms of Article XIIIB of the California Constitution and
Government Code Section 7900 et seq., all local agencies are required to
establish, by resolution, an appropriations limit for each fiscal year; and
WHEREAS, in June 1990, voters in the State of California approved Proposition 111
which amended Government Code Section 7900 et seq., modifying the
method of calculation for the appropriations limit and requiring all local
agencies to select, by resolution, the annual adjustment factors used to
perform the calculations; and
WHEREAS, the District staff has performed the required calculations to determine the
limit for Fiscal Year 2021/22, in compliance with the above provisions and
made the documentation used in the determination of the appropriations
limit and other necessary determinations available to the public at least
fifteen days prior to the date of this meeting.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1.That there is hereby adopted, pursuant to Article XIIIB of the California
Constitution and Government Code Section 7900 et seq., as amended by
Proposition 111, an appropriations limit for Fiscal Year 2021/22 of
$8,354,460.
Section 2.The annual adjustment factors are the weighted average percentage
change in the population of the cities within the District’s jurisdiction, and
the percentage change in the California Per Capita Income.
PASSED AND ADOPTED this 8th day of June 2021 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Phil Hawkins, President
Yorba Linda Water District
Page 136 of 172
Resolution No. 2021-XX Adopting the Appropriations Limit for FY22 2
ATTEST:
Annie Alexander, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Law LLP
Page 137 of 172
YORBA LINDA WATER DISTRICT
ARTICLE XIIIB APPROPRIATIONS LIMIT CALCULATION
FY 2021/22
Fiscal Year: 2021-2022
Budget vs. Actual : Budget
FY 2020/21 Appropriations Limit
Adjustment Factors :
2021/22 Price Factor
2021/22 Population Factor
5 .73%
-0.46%
$ 7 ,938 ,209
1.0573
0 .9954
1.0524
FY2021/22 Appropriations Limit $ 8,354,460
Appropriations Subject to Lim itation
Proceeds of Property Taxes
FY2021/22 Appropriations Limit
Less Appropriations Subject to Limit
$ 2 ,025 ,000
$ 8,354,460
$ 2 ,025,000
(Over)/Under Limit $ 6,329,460 ========
In accordance with Article XIII B of the California Constitution and California Government
Code Section 7900 et. seq., the attached calculation for the District's Appropriation Limit
for Fiscal Year 2021 has been posted and made available to the public as of May 13, 2021 .
ager
Yorba Linda
W'"ate r District
Page 138 of 172
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• DEPARTMENT OF Gavin Newsom • Governor
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O FFICE O F THE DIRE CTOR
May 2021
Dear Fiscal Officer:
Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance (Finance}
to transmit an estimate of the percentage change in population to local governments. Each local
jurisdiction must use their percentage change in population factor for January 1, 2021, in
conjunction with a change in the cost of living, or price factor, to calculate their appropriations
limit for fiscal year 2021-22 . Attachment A provides the change in California 's per capita personal
income and an example for utilizing the price factor and population percentage change factor
to calculate the 2021-22 appropriations limit . Attachment B provides the city and unincorporated
county population percentage change. Attachment C provides the population percentage
change for counties and their summed incorporated areas . The population percentage change
data excludes federal and state institutionalized populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit . California Revenue and
Taxation Code section 2228 provides additional information regarding the appropriations limit .
Article XIII B, section 9(C} of the California Constitution exempts certain special districts from the
appropriations limit calculation mandate. The code section and the California Constitution can
be accessed at the following website : http://legin fo.le gislature .ca .gov/faces/codes.xh tml.
Special districts required by law to calculate their appropriations limit must present the calculation
as part of their annual audit. Any questions special districts have on this requirement should be
directed to their county, district legal counsel, or the law itself. No state agency reviews the local
appropriations limits.
Population Certification
The population certification program applies only to cities and counties . California Revenue and
Taxation Code section 11005 .6 mandates Finance to automatically certify any population
estimate that exceeds the current certified population with the State Controller's Office . Finance
will certify the higher estimate to the State Controller by June 1, 2021 .
Please Note: The prior year's city population estimates may be revised . The per capita personal
income change is based on historical data. Given the stay-at-home orders due to COVID-19 ,
growth in the coming years may be substantially lower than recent trends .
If you have any questions regarding this data, please contact the Demographic Research Unit at
(916} 323-4086 .
KEELY MARTIN BOSLER
Director
By :
/s/ Erika Li
Erika Li
Chief Deputy Director
Attachment
Page 139 of 172
May 2021
Attachment A
A. Price Factor : Article XIII B specifies that local jurisdictions select their cost of living
factor to compute their appropriation limit by a vote of their governing body. The
cost of living factor provided here is per capita personal income. If the percentage
change in per capita personal income is selected , the percentage change to be
used in setting the fiscal year 2021-22 appropriation limit is :
Per Capita Personal Income
Fiscal Year
(FY)
Percentage change
over prior year
2021-22 .73
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 2021-22
appropriation limit .
2021-22: -----
Per Capita Cost of Living Change = 5.73 percent
Population Change = -0.46 percent
Per Capita Cost of Living converted to a ratio :
Population converted to a ratio :
Calculation of factor for FY 2021-22 :
5.73 + 100 = 1.0573
100
-0.46 + 100 = 0 .9954
100
1.0573 X 0 .9954 = 1.0524
Page 140 of 172
Fiscal Year 2021-22
Attachment B
Annual Percent Change in Population Minus Exclusions"
January 1,2020 to January 1,2021 and Total Population,January 1,2021
Tota
County Percent Chanae --- Population Minus Exclusions --- Population
City 2020-2021 1-1-20 1-1-21 1-1-2021
Orange
Aliso Viejo -1.07 50,351 49,813 49,813
Anaheim -1.01 357,042 353,451 353,468
Brea -0.79 45,498 45,137 45,137
Buena Park -0.86 82,336 81,626 81,626
Costa Mesa -0.78 113,661 112,780 112,780
Cypress -1.07 49,055 48,531 48,531
Dana Point -0.83 33,466 33,189 33,189
Fountain Valley -0.84 55,419 54,953 54,953
Fullerton -1.86 142,070 139,431 139,431
Garden Grove -0.57 173,457 172,476 172,476
Huntington Beach -0.93 198,725 196,874 196,874
Irvine -2.31 277,988 271,564 271,564
Laguna Beach -0.86 22,690 22,495 22,495
Laguna Hills -1.03 31,397 31,073 31,073
Laguna Niguel 0.94 64,559 65,168 65,168
Laguna Woods -1.07 16,209 16,036 16,036
Lo Habra -1.04 63,471 62,808 62,808
Lake Forest -0.02 84,556 84,538 84,538
La Palma -1.06 15,607 15,442 15,442
Los Alamitos -0.55 11,602 11,538 11,538
Mission Viejo -1.06 95,130 94,119 94,119
Newport Beach -0.64 86,415 85,865 85,865
Orange -1.53 139,504 137,366 137,366
Placentia -0.77 51,569 51,173 51,173
Rancho Santa Margarita -1.08 48,708 48,183 48,183
San Clemente -0.73 64,538 64,065 64,065
San Juan Capistrano -0.78 36,081 35,801 35,801
Santa Ana 0.02 331,304 331,369 331,369
Seal Beach -1.09 24,683 24,414 24,443
Stanton 1.08 39,150 39,573 39,573
Tustin -0.62 80,511 80,009 80,009
Villa Park -1.07 5,821 5,759 5,759
Westminster -0.51 91,931 91,466 91,466
Yorba Linda -0.85 68,426 67,846 67,846
Unincorporated 0.22 127,510 127,787 127,787
County Total -0.84 3,180,440 3,153,718 3,153,764
*Exclusions include residents on federal military installations and group quarters residents in state mental
institutions,state and federal correctional institutions and veteran homes.
Page 141 of 172
ITEM NO. 8.7.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Rosanne P. Weston, Engineering Manager
Danielle Logsdon, Principal Engineer
Jeannette Guereca, Senior Engineer
SUBJECT:Award of Construction Contract for the Grandview Ave and Ridge
Way Waterline Improvements
RECOMMENDATION:
That the Board of Directors award the Construction Contract for the Grandview Ave and Ridge
Way Waterline Improvements to PALP, Inc DBA Excel Paving Company for $587,585.00, Job
No. 2020-61.
SUMMARY:
On April 12, 2021, the District solicited bids for construction of the Grandview Ave and Ridge
Way Waterline Improvements. On May 11, 2021, bids were received from six contractors. The
six bids are shown in the summary below.
No. Contractor Total Bid Amount
1 PALP, Inc. DBA Excel Paving Company $587,585.00
2 Cedro Construction, Inc. $620,543.00
3 Big Ben Engineering, Inc. $643,071.00
4 Paulus Engineering, Inc. $644,767.20
5 TE Roberts, Inc. $645,704.40
6 Dominguez General Engineering, Inc. $884,554.00
FISCAL IMPACT:
Budgeted: Yes
Total Budget: $667,000
Funding Source: Capital
Job No: 2020-61
BACKGROUND:
Page 142 of 172
As part of the District's continuing Rehabilitation & Replacement (R&R) Program to replace
aging infrastructure, waterline improvements are planned for Ridge Way and Grandview Ave.
There is extensive leak history in the area and meter clusters in backyards are inaccessible
and need to be relocated. The project will include removal of the meter clusters, abandonment
of approximately 830 feet of waterline dating back to 1927 and 1935, and replacement of
approximately 560 feet of waterline. The project will also include extending the waterline 619
feet on Short Street to Kellogg Drive to loop the system. This project was identified in the
District’s 2018 Asset Management Plan.
STRATEGIC PLAN INITIATIVES:
G1 4B - Address infrastructure needs by updating/implementing the Capital Improvement Plan
Page 143 of 172
ITEM NO. 8.8.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Rosanne P. Weston, Engineering Manager
Reza Afshar, Senior Engineer
Ariel Bacani, Associate Engineer
SUBJECT:Terms and Conditions for Water and Sewer Service with Shea
Homes, LP for TTM 18123
RECOMMENDATION:
That the Board of Directors approve the Terms and Conditions for Water and Sewer Service
with Shea Homes, LP for TTM 18123, Job No. 202115.
SUMMARY:
The applicant, Shea Homes, LP, proposes to develop a 23-lot single-family residential tract,
Tentative Tract Map (TTM) 18123, on a 13.1-acre property. The project is located on the north
side of Bastanchury Road, between Casa Loma Avenue and Eureka Avenue, in the City of
Yorba Linda.
FISCAL IMPACT:
Funding Source: Developer Funded
BACKGROUND:
The District has an existing water pipeline in Bastanchury Road that is adequate in size and of
sufficient pressure to serve the project. Staff requires the applicant to loop the proposed public
onsite water facilities into Bastanchury Road for water circulation and redundancy.
The project is located within Drainage Area "2" of the District's Sewer Service Area. The
District has an existing 12-inch sewer main in Bastanchury Road that is adequate in size to
serve the housing tract. The applicant shall provide sewer flow calculations to determine its
impact on the existing public sewer system further downstream from the project site.
ATTACHMENTS:
1.Terms and Conditions
2.Exhibit
Page 144 of 172
Date: JUNE 8, 2021
YORBA LINDA WATER DISTRICT
TERMS AND CONDITIONS
FOR WATER AND SEWER SERVICE
NAME OF APPLICANT: SHEA HOMES, LIMITED PARTNERSHIP
LOCATION OF PROJECT: N. SIDE OF BASTANCHURY RD., BETWEEN CASA LOMA
AVE. AND EUREKA AVE., YORBA LINDA
TRACT NUMBER: 18123 JOB NUMBER: 202115 LOT(S): 23
The applicant will be required to complete to the satisfaction of the District the following
items that have an “X” following the number.
1) ☒ The applicant shall provide the District with a copy of the Grant Deed or Title
Report of the property to be served.
2) ☒ The applicant shall include information deemed necessary by the District in
the event the applicant is required to file a Department of Real Estate Tax
Disclosure statement.
3) ☒ The applicant shall submit two (2) sets of the improvement plans to the
District for plan check processing.
a) Improvement Plans
b) Grading Plans
c) Tract, Parcel or Vesting Map
d) Landscaping Plans
4) ☒ Improvement Plans submitted for plan check shall comply with the submittal
requirements established by the YLWD Engineering Department.
5) ☒ The applicant shall dedicate or obtain all easements deemed necessary by
the District in accordance with the Rules and Regulations of the District. All
easement documents shall be prepared under the supervision of and
stamped by a Professional Land Surveyor or a Registered Civil Engineer
(licensed prior to January 1, 1982) licensed to practice in the State of
California.
6) ☒ The applicant shall provide the District with a copy of the Recorded
Tract/Parcel Map(s) or Easement Documents illustrating all District
easements required by Term and Condition No. 7, prior to requesting
occupancy releases.
Page 145 of 172
Page 2 of 6
NAME OF APPLICANT: SHEA HOMES, LP
LOCATION OF PROJECT: TTM 18123 – N. SIDE OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE.
7) ☒ The applicant shall prepare and process all easements to be quitclaimed by
the District in accordance with the Rules and Regulations of the District.
8) ☒ The applicant shall furnish the District with a 24 -hour emergency telephone
number prior to the District’s approval of the construction plans.
9) ☒ The applicant shall notify the District 48 hours prior to initiating any work
related to required or proposed improvements.
10) ☒ The applicant shall complete a Temporary Construction Meter Permit
application for all water to be used in construction work and all water used
under such permit shall be taken from the approved construction meter.
11) ☒ The applicant shall provide, per the District specifications, the "As Built"
AutoCAD file (version 2016 or earlier) of the Water and/or Sewer facilities.
12) ☒ The applicant shall complete a Water Service Agreement between the Yorba
Linda Water District and the applicant.
13) ☒ The applicant shall pay all of the water fees as required by the Rules and
Regulations for Water Service of the District.
14) ☒ The applicant shall pay meter fees associated with the installation of radio
read meters for this project.
15) ☒ The applicant shall comply with the Rules and Regulations for Water Service
of the Yorba Linda Water District.
16) ☒ The applicant shall provide the District with a set of plans stamped and
approved by the Orange County Fire Authority, or fire agency having
jurisdiction, that identifies approved fire hydrant locations. Such approved
plan must be submitted to the District before staff will initiate a District plan
check for water improvements. Applicant shall also provide to the District with
a copy of conditions of approval issued by the Fire Agency having jurisdiction.
17) ☒ The applicant shall have all water facilities designed in accordance with the
District's Water Facilities Plan and the Standard Specifications and Drawings
for Construction of Domestic Water and Sewer Facilities . All design plans
shall be prepared under the supervision of and stamped by a Registered Civil
Engineer licensed to practice in the State of California.
18) ☒ The applicant’s engineer shall provide a computer hydraulic analysis report
to confirm that the District’s existing water system can accommodate the
project. The District’s consultant will verify, using the hydraulic model. If
system deficiencies are found, the applicant shall be required to provide
mitigation to the satisfaction of the District.
Page 146 of 172
Page 3 of 6
NAME OF APPLICANT: SHEA HOMES, LP
LOCATION OF PROJECT: TTM 18123 – N. SIDE OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE.
19) ☒ The applicant’s future water facilities shall be conveyed to the District as
indicated on applicant’s future Water and Sewer Improvement Plans
approved by the District.
20) ☒ The applicant shall be required to conduct flow tests at their cost in the event
the Orange County Fire Authority requires a flow test , and provide an
approved copy to the District. A District representative shall be present to
witness the flow test.
21) ☒ The applicant shall comply with all additional District requirements, relative to
the fire protection system, fire hydrant construction and fire hydrant locations.
22) ☐ The applicant shall install water Sampling Station(s) in conformance with
the District’s Standard Specifications and Drawings for Construction of
Domestic Water and Sewer Facilities.
23) ☒ The applicant shall provide a completed Surety Bond for the water facilities
prior to the District signing the Water Improvement Plans. The applicant shall
also provide to the District an estimate of the construction costs of the
proposed water facilities.
24) ☒ The applicant shall install the curb and gutters a minimum of one week prior
to the installation of the water main and services.
25) ☒ All existing water services that are not useable in the new plan shall be cut
and plugged at the main line.
26) ☒ The applicant shall coordinate through the District all connections of new
water facilities to the existing District facilities.
27) ☒ The applicant shall provide a written copy of the Bacteriological Report prior
to occupancy releases certifying that the water meets the Health
Department's requirements.
28) ☒ The applicant shall adjust and raise to grade all valve covers within the limits
of this project.
29) ☒ The applicant shall install a pressure regulator in all buildings that have over
80 p.s.i. static water pressure in accordance with the appropriate building
codes.
30) ☒ The applicant shall install a District approved backflow device in connection
with any private fire suppression sprinkler facilities that may be required by
the Orange County Fire Authority or fire agency having jurisdiction.
Page 147 of 172
Page 4 of 6
NAME OF APPLICANT: SHEA HOMES, LP
LOCATION OF PROJECT: TTM 18123 – N. SIDE OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE.
31) ☒ The applicant shall install a reduced pressure principle backflow prevention
device on all commercial buildings and landscape services.
32) ☒ The applicant shall install and provide a written test report to the District for
each backflow device certifying that the backflow devices are operating
properly.
33) ☒ The applicant shall install and provide a written test report to the District
certifying that the double check detector assembly is operating properly prior
to the double check detector assembly being turned on for service.
34) ☒ The applicant shall provide an annual written test report to the District
certifying that the backflow devices and fire detector assemblies are operating
properly pursuant to the District’s Backflow Prevention Program and the State
of California Administrative Code, Title 17, Public Health Rules and
Regulations Relating to Cross-Connections.
35) ☐ The applicant shall complete a Sewer Connection Application and Permit for
Sewer Service.
36) ☒ The applicant shall complete a Sewer Service Agreement between the Yorba
Linda Water District and the applicant.
37) ☒ The applicant shall comply with the Rules and Regulations for Sewer Service
of the Yorba Linda Water District.
38) ☒ The applicant shall pay all of the sewer fees as required by the Rules and
Regulations for Sewer Service of the District.
39) ☒ The applicant shall have all sewer facilities designed in accordance with the
District's Sewer Master Plan and the Standard Specifications and Drawings
for Construction of Domestic Water and Sewer Facilities . All design plans
shall be prepared under the supervision of and stamped by a Registered Civil
Engineer licensed to practice in the State of California.
40) ☒ The applicant’s engineer shall provide sewer flow calculations to confirm that
the District’s existing sewer system can accommodate the peak wastewater
generation from the project. The District’s consultant will verify, using the
sewer hydraulic model. If system deficiencies are found, the applicant shall
be required to provide mitigation to the satisfaction of the District.
41) ☒ The applicant shall provide a completed Surety Bond for the sewer facilities
prior to the District signing the Sewer Improvement Plans. The applicant shall
also provide to the District an estimate of the construction costs of the
proposed sewer facilities.
Page 148 of 172
Page 5 of 6
NAME OF APPLICANT: SHEA HOMES, LP
LOCATION OF PROJECT: TTM 18123 – N. SIDE OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE.
42) ☒ The applicant’s future sewer facilities shall be conveyed to the District as
indicated on applicant’s future Water and Sewer Improvement Plans
approved by the District.
43) ☒ The applicant shall construct sewer main s and appurtenances in
conformance with the approved plans and the District’s Standard
Specifications and Drawings for Construction of Domestic Water and Sewer
Facilities.
44) ☒ All existing sewer laterals that are not useable in the new plan shall be cut
and plugged at the main line.
45) ☒ The applicant shall adjust and raise to grade all sewer manhole covers within
the limits of this project.
46) ☒ The applicant shall install a sewer backflow prevention valve on all sewer
service connections in which the pad elevations of the property being served
is lower than the rim elevation of the upstream manhole. Installation of the
backflow device shall comply with all requirements of the Building and
Plumbing Codes of the appropriate agency having jurisdiction.
47) ☒ The applicant shall submit a video inspection report of their sewer project in
DVD format. The video of the sewer facilities shall be conducted in the
presence of the District inspector, which will include stationing locations of
manholes, cleanouts, wyes, laterals, backflow devices and appurtenances.
(END OF STANDARD TERMS AND CONDITIONS)
Page 149 of 172
Page 6 of 6
NAME OF APPLICANT: SHEA HOMES, LP
LOCATION OF PROJECT: TTM 18123 – N. SIDE OF BASTANCHURY RD., BETWEEN CASA LOMA AVE. & EUREKA AVE.
PROJECT SPECIFIC TERMS AND CONDITIONS
48) ☒ The applicant shall loop the proposed onsite public water system into the
existing water main pipeline at Bastanchury Rd., per approved plans and
District specifications.
49) ☒ The applicant shall connect the proposed onsite public sewer system into
the existing sewer main at Bastanchury Rd., per approved plans and District
specifications.
50) ☒ Accessory dwelling units (ADUs) designed/constructed simultaneously with
the main houses by the applicant, shall require separate water and sewer
service connections, per approved plans and District specifications.
I hereby certify that the foregoing Terms and Conditions were approved at the June 8, 2021
Regular Meeting of the Board of Directors of the Yorba Linda Water District. The approved
Terms and Conditions shall become void six (6) months from the approval date if a formal
Water and Sewer Service Agreement between Yorba Linda W ater District and the applicant
is not executed for the project under consideration.
Brett R. Barbre, General Manager
Reviewed by: Rosanne P. Weston, PMP
Engineering Manager
Page 150 of 172
CITY OF YORBA LINDA
CITY OF YORBA LINDA 323-161-07 PROJECT SITE
323-151-02
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PREPARED BY EXHIBIT
YORBA LINDA WATER DISTRICT SCALE:
N.T.S.
1717 E. MIRALOMA AVE WATER AND SEWER IMPROVEMENTS DATE:
PLACENTIA CA 92870 FOR 6/08/2021
(714) 701 -3000 SHEA HOMES, LP, TTM 18123 FILENAME:
J-202115
r-aye I Z)i uI i/Z.
ITEM NO. 8.9.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Rosanne P. Weston, Engineering Manager
Ricardo Hipolito Jr., Assistant Engineer II
Reza Afshar, Senior Engineer
SUBJECT:Terms and Conditions for Water and Sewer Service with Joe
Florentine, 4901 and 4905 Main Street
RECOMMENDATION:
That the Board of Directors approve the Terms and Conditions for Water and Sewer Service
with Joe Florentine, 4901 and 4905 Main Street, Job No. 202113.
SUMMARY:
Joe Florentine proposes to remodel an existing 2,219 square foot commercial building and
rebuild it for a restaurant business. The project site addressed as 4901 and 4905 Main Street
is located within the Historic Town Center in the City of Yorba Linda as shown in the attached
exhibit.
FISCAL IMPACT:
Funding Source: Developer Funded
Account No: 1/2-2600
Job No: 202113
BACKGROUND:
The District has an existing Zone 2, 8-inch water pipeline in Main Street that is adequate in
size and of sufficient pressure to serve the project. The applicant is conditioned by the Orange
County Fire Authority to provide a private fire suppression system for the existing building. The
District will require a double check detector assembly and isolation valve to separate the
private system from the public water system, as depicted in the attached exhibit. The applicant
also requests to up-size the existing water service due to the expected water demand required
for a restaurant business.
As for sewer service, the applicant is planning to connect to the existing 6-inch sewer lateral
Page 152 of 172
that served the previous business. The District will require grease interceptor sizing
calculations. The Terms and Conditions for Water and Sewer Service with Joe Florentine, Job
No. 202113 are attached.
ATTACHMENTS:
1.Terms and Conditions
2.Exhibit
Page 153 of 172
Date: May 11,2021
YORBA LINDA WATER DISTRICT
TERMS AND CONDITIONS
FOR WATER
NAME OF APPLICANT: JOE FLORENTINE
LOCATION OF PROJECT: 4901 & 4905 MAIN STREET, YORBA LINDA
TRACT NUMBER: N/A JOB NUMBER: 202113 SEWER: N/A LOT(S): NA
The applicant will be required to complete to the satisfaction of the District the following
items that have an “X” following the number.
1) ☒ The applicant shall provide the District with a copy of the Grant Deed or Title
Report of the property to be served.
2) ☒ The applicant shall include information deemed necessary by the District in
the event the applicant is required to file a Department of Real Estate Tax
Disclosure statement.
3) ☒ The applicant shall submit two (2) sets of the improvement plans to the
District for plan check processing.
a) Improvement Plans
b) Grading Plans
c) Tract, Parcel or Vesting Map
d) Landscaping Plans
4) ☒ Improvement Plans submitted for plan check shall comply with the submittal
requirements established by the YLWD Engineering Department.
5) ☒ The applicant shall dedicate or obtain all easements deemed necessary by
the District in accordance with the Rules and Regulations of the District. All
easement documents shall be prepared under the supervision of and
stamped by a Professional Land Surveyor or a Registered Civil Engineer
(licensed prior to January 1, 1982) licensed to practice in the State of
California.
6) ☐ The applicant shall provide the District with a copy of the Recorded
Tract/Parcel Map(s) or Easement Documents illustrating all District
easements required by Term and Condition No. 7, prior to requesting
occupancy releases.
7) ☐ The applicant shall prepare and process all easements to be quitclaimed by
the District in accordance with the Rules and Regulations of the District.
Page 154 of 172
Page 2 of 6
NAME OF APPLICANT: JOE FLORENTINE
LOCATION OF PROJECT: 4901 & 4905 MAIN STREET, YORBA LINDA
8) ☒ The applicant shall furnish the District with a 24-hour emergency telephone
number prior to the District’s approval of the construction plans.
9) ☒ The applicant shall notify the District 48 hours prior to initiating any work
related to required or proposed improvements.
10) ☒ The applicant shall complete a Temporary Construction Meter Permit
application for all water to be used in construction work and all water used
under such permit shall be taken from the approved construction meter.
11) ☒ The applicant shall provide, per the District specifications, the "As Built"
AutoCAD file (version 2016 or earlier) of the Water and/or Sewer facilities.
12) ☒ The applicant shall complete a Water Service Agreement between the Yorba
Linda Water District and the applicant.
13) ☒ The applicant shall pay all of the water fees as required by the Rules and
Regulations for Water Service of the District.
14) ☒ The applicant shall pay meter fees associated with the installation of radio
read meters for this project.
15) ☒ The applicant shall comply with the Rules and Regulations for Water Service
of the Yorba Linda Water District.
16) ☒ The applicant shall provide the District with a set of plans stamped and
approved by the Orange County Fire Authority, or fire agency having
jurisdiction, that identifies approved fire hydrant locations. Such approved
plan must be submitted to the District before staff will initiate a District plan
check for water improvements.
17) ☒ The applicant shall have all water facilities designed in accordance with the
District's Water Facilities Plan and the Standard Specifications and Drawings
for Construction of Domestic Water and Sewer Facilities. All design plans
shall be prepared under the supervision of and stamped by a Registered Civil
Engineer licensed to practice in the State of California.
18) ☐ The applicant’s engineer shall provide a computer hydraulic analysis report
to confirm that the District’s existing water system can accommodate the
project.
19) ☒ The applicant’s future water facilities, shall be conveyed to the District as
indicated on applicant’s future Water Improvement Plans approved by the
District.
Page 155 of 172
Page 3 of 6
NAME OF APPLICANT: JOE FLORENTINE
LOCATION OF PROJECT: 4901 & 4905 MAIN STREET, YORBA LINDA
20) ☒ The applicant shall be required to conduct flow tests at their cost in the event
the Orange County Fire Authority requires a flow test, and provide an
approved copy to the District. A District representative shall be present to
witness the flow test.
21) ☒ The applicant shall comply with all additional District requirements, relative to
the fire protection system, fire hydrant construction and fire hydrant locations.
22) ☐ The applicant shall install water Sampling Station(s) in conformance with
the District’s Standard Specifications and Drawings for Construction of
Domestic Water and Sewer Facilities.
23) ☒ The applicant shall provide a completed Surety Bond for the water facilities
prior to the District signing the Water Improvement Plans. The applicant shall
also provide to the District an estimate of the construction costs of the
proposed water facilities.
24) ☐ The applicant shall install the curb and gutters a minimum of one week prior
to the installation of the water main and services.
25) ☒ All existing water services that are not useable in the new plan shall be cut
and plugged at the main line.
26) ☒ The applicant shall coordinate through the District all connections of new
water facilities to the existing District facilities.
27) ☒ The applicant shall provide a written copy of the Bacteriological Report prior
to occupancy releases certifying that the water meets the Health
Department's requirements.
28) ☒ The applicant shall adjust and raise to grade all valve covers within the limits
of this project.
29) ☒ The applicant shall install a pressure regulator in all buildings that have over
80 p.s.i. static water pressure in accordance with the appropriate building
codes.
30) ☒ The applicant shall install a District approved backflow device in connection
with any private fire suppression sprinkler facilities that may be required by
the Orange County Fire Authority or fire agency having jurisdiction.
31) ☒ The applicant shall install a reduced pressure principle backflow prevention
device on all commercial buildings and landscape services.
Page 156 of 172
Page 4 of 6
NAME OF APPLICANT: JOE FLORENTINE
LOCATION OF PROJECT: 4901 & 4905 MAIN STREET, YORBA LINDA
32) ☒ The applicant shall install and provide a written test report to the District for
each backflow device certifying that the backflow devices are operating
properly.
33) ☒ The applicant shall install and provide a written test report to the District
certifying that the double check detector assembly is operating properly prior
to the double check detector assembly being turned on for service.
34) ☒ The applicant shall provide an annual written test report to the District
certifying that the backflow devices and fire detector assemblies are operating
properly pursuant to the District’s Backflow Prevention Program and the State
of California Administrative Code, Title 17, Public Health Rules and
Regulations Relating to Cross-Connections.
35) ☐ The applicant shall complete a Sewer Connection Application and Permit for
Sewer Service.
36) ☐ The applicant shall complete a Sewer Service Agreement between the Yorba
Linda Water District and the applicant.
37) ☒ The applicant shall comply with the Rules and Regulations for Sewer Service
of the Yorba Linda Water District.
38) ☐ The applicant shall pay all of the sewer fees as required by the Rules and
Regulations for Sewer Service of the District.
39) ☐ The applicant shall have all sewer facilities designed in accordance with the
District's Sewer Master Plan and the Standard Specifications and Drawings
for Construction of Domestic Water and Sewer Facilities. All design plans
shall be prepared under the supervision of and stamped by a Registered Civil
Engineer licensed to practice in the State of California.
40) ☒ The applicant’s engineer shall provide sewer flow calculations to confirm that
the District’s existing sewer system can accommodate the peak wastewater
generation from the project.
41) ☐ The applicant shall provide a completed Surety Bond for the sewer facilities
prior to the District signing the Sewer Improvement Plans. The applicant shall
also provide to the District an estimate of the construction costs of the
proposed sewer facilities.
42) ☒ The applicant’s sewer facilities (on-site) shall be Privately owned and
maintained.
43) ☐ The applicant shall construct a sewer main and appurtenances in
conformance with the approved plans and the District’s Standard
Page 157 of 172
Page 5 of 6
NAME OF APPLICANT: JOE FLORENTINE
LOCATION OF PROJECT: 4901 & 4905 MAIN STREET, YORBA LINDA
Specifications and Drawings for Construction of Domestic Water and Sewer
Facilities.
44) ☐ All existing sewer laterals that are not useable in the new plan shall be cut
and plugged at the main line.
45) ☐ The applicant shall adjust and raise to grade all sewer manhole covers within
the limits of this project.
46) ☒ The applicant shall install a sewer backflow prevention valve on all sewer
service connections in which the pad elevations of the property being served
is lower than the rim elevation of the upstream manhole. Installation of the
backflow device shall comply with all requirements of the Building and
Plumbing Codes of the appropriate agency having jurisdiction.
47) ☐ The applicant shall submit a video inspection report of their sewer project in
DVD format. The video of the sewer facilities shall be conducted in the
presence of the District inspector, which will include stationing locations of
manholes, cleanouts, wyes, laterals, backflow devices and appurtenances.
(END OF STANDARD TERMS AND CONDITIONS)
PROJECT SPECIFIC TERMS AND CONDITIONS
48) ☒ The applicant shall install one fire service line and upsize the existing water
service and meter, per approved plans and District Specifications.
49) ☒ The applicant shall provide the District with a copy of grease interceptor
sizing calculations approved by the City’s Building Division.
I hereby certify that the foregoing Terms and Conditions were approved at the May 11,
2021 Regular Meeting of the Board of Directors of the Yorba Linda Water District. The
approved Terms and Conditions shall become void six (6) months from the approval date
if a formal Water and Sewer Service Agreement between Yorba Linda Water District and
the applicant is not executed for the project under consideration.
Brett R. Barbre, General Manager
Page 158 of 172
Page 6 of 6
NAME OF APPLICANT: JOE FLORENTINE
LOCATION OF PROJECT: 4901 & 4905 MAIN STREET, YORBA LINDA
Reviewed by: Rosanne P. Weston, PMP
Engineering Manager
Page 159 of 172
Page 160 of 172
ITEM NO. 8.10.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Annie Alexander, Sr. Executive Assistant/Board Secretary
Veronica Ortega, Executive Assistant
SUBJECT:Concurring Nomination Resolution for ACWA 2022-2023 Vice
President Election
RECOMMENDATION:
That the Board of Directors consider adopting a concurring resolution in support of Cathy
Green, OCWD First Vice President, as a candidate for the office of ACWA Vice President.
BACKGROUND:
The Association of California Water Agencies (ACWA) has announced that a Nominating
Committee has been formed to develop a slate for the Association's statewide positions of
President and Vice President for the 2022-2023 term. The individual who fills the ACWA Vice
President position needs to possess a working knowledge of water industry issues and
concerns, connections with water professionals throughout the state, strength of character and
leadership capabilities, and experience in matters related to the performance of the duties of
the office.
The Orange County Water District (OCWD) Board of Directors voted unanimously to nominate
and endorse OCWD First Vice President, Cathy Green, as a candidate for Vice President of
ACWA. Therefore, Director Cathy Green is formally requesting the District's support as a
candidate for this office with the adoption of a concurring resolution. Attached is a letter of
support from OCWD's President and General Manager.
ATTACHMENTS:
1.Candidate Info - Cathy Green
2.Resolution No. 2021-XX - Support of Cathy Green
Page 161 of 172
DIRECTORS OFFICERS
•
DENIS R.BILODEAU,P.E. President
I
JORDAN BRANDMAN • STEPHEN R.SHELDON
CATHY GREEN
NELIDA MENDOZA U First Vice President
DINA L.NGUYEN,ESQ. CATHY GREEN
KELLY E.ROWE,C.E.G.,C.H. N r
Second Vice President
STEPHEN R.SHELDON
TRI TA
TRITA ORANGE COUNTY WATER DISTRICT
BRUCE WHITAKER General Manager
:-)RANGE COUNTY'S GROUNDWATER AUTHORITY
ROGER C.YOH,P.E. MICHAEL R.MARKUS,P.E.,D.WRE
RE: OCWD First Vice President Cathy Green for ACWA Vice President
Greetings:
On behalf of Orange County Water District (OCWD), it is a great honor to request your
agency's support and vote for Cathy Green for election to the office of Vice President of
the Association of California Water Agencies (ACWA). We are fortunate to have such a
qualified candidate in Director Green, who has the OCWD Board's unanimous support
for serving in this role.
As an active member of ACWA since 2012, Director Green has served on various
ACWA committees, and as Chair and Vice Chair of ACWA Region 10; as such, she has
formed positive working relationships with numerous contacts throughout California.
She possesses a working knowledge of water industry issues, strength of character,
leadership capabilities, and experience in matters related to the performance of the
duties of the office of ACWA Vice President.
Director Green has been an impactful member of the OCWD Board since 2010,
including serving as President and First Vice President. OCWD has developed several
innovative water programs and award-winning projects like the Groundwater
Replenishment System, which are being duplicated by water agencies worldwide.
Prior to Director Green's service on OCWD's Board, she was elected to two consecutive
terms on the Huntington Beach City Council, where she served two terms as Mayor. At
the city, she served on the Orange County Transportation Authority Board and was a
Director of OC Clean Tech. Director Green serves on several other boards such as the
Huntington Valley Boys and Girls Club and the Orange County Explorer Program. She
is also a member of the American Legion Unit 133 Auxiliary, Huntington Beach
Community Emergency Response Team (CERT), and the Elks Lodge 1959. She sits on
the Advisory Board of the Bolsa Chica Conservancy and is a founding member of
Amigos de Bolsa Chica.
Director Green is the recipient of many awards. Her most recent is a 2019 Boys and
Girls Clubs of America National Service to Youth Award. In 2010, she was the recipient
of the Spurgeon Award, and, in 2005, she was named Woman of the Year by then State
Senator John Campbell. Other awards include the 2007 Peace Maker Award from the
Greater Huntington Beach Interfaith Council, the 2006 United Way Excellence in Child
Care Planning, and the Golden West College Pillar of Achievement Award. She has
also been recognized as Huntington Beach's Citizen of the Year by the Huntington
Fountain Valley,CA 92728-8300Fountain Valley, 92708 Page 162 of 172
Beach Chamber of Commerce, a Huntington Beach Soroptimist's Woman of Distinction,
and a Bolsa Chica Conservancy Conservator of the Year.
Director Green's experience as the Mayor of Huntington Beach and later as OCWD's
Board President, along with her involvement in other organizations, has contributed to
her broad and expansive knowledge of local and statewide issues, making her very
qualified for the position of ACWA Vice President. She has made numerous friendships
and contacts statewide that could serve her well in leading ACWA into the future.
OCWD's Board has the highest confidence in Director Green and her proven leadership
abilities, which can help guide ACWA to continued organizational success and
excellence in serving its member agencies.
More information about Director Green's qualifications for the office of ACWA Vice
President, along with a Template Resolution of Support for Cathy Green, can be found
on OCWD's website. Additionally, if you have any questions or requests for additional
information, kindly contact OCWD General Manager Mike Markus at
mmarkus(cDOCWD.com or 714-378-3305. Thank you for your consideration of Director
Green for the office of ACWA Vice President.
Sincerely,
'4�f . R -
Stephen R. Sheldon Michael R. Markus, P.E., D. WRE.
Board President General Manager
Page 163 of 172
RESOLUTION NO. 21-3-33
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE ORANGE COUNTY WATER DISTRICT
NOMINATING AND SUPPORTING OCWD DIRECTOR CATHY GREEN
AS A CANDIDATE FOR THE POSITION OF ACWA VICE PRESIDENT
WHEREAS, ACWA has announced that a Nominating Committee has been formed to develop a
slate for the Association's statewide positions of President and Vice President; and,
WHEREAS, the individual who fills an officer position will need to have a working knowledge of
water industry issues and concerns, possess strength of character and leadership capabilities,
and be experienced in matters related to the performance of the duties of the office; and,
WHEREAS, this person must be able to provide the dedication of time and energy to effectively
serve in this capacity; and,
WHEREAS, Director Green has served on the ACWA board since 2016 and she has served on
the ACWA Board Executive Committee since 2020; and,
WHEREAS, Director Green has served as ACWA Region 10 Chair(2018-19) and is currently
serving her second term as ACWA Region 10 Vice Chair (2016-17, current), and she has
served as a ACWA Region 10 board member since 2012; and,
WHEREAS, Director Green serves on the ACWA Water Quality Committee (2012-current),
ACWA Energy Committee (2019-current), and she previously served on the ACWA State
Legislative Committee (2012-15); and,
WHEREAS, Director Green has served in a leadership role at Orange County Water District
(OCWD). She was elected to the OCWD Board of Directors in November 2010 and was re-
elected in 2012, 2016 and 2020. She was selected by the Board to serve as its 2015 and 2016
President, and currently serves as 1 sl Vice President, a position she previously held in 2013,
2014, and since 2019; and,
WHEREAS, Director Green currently serves as the Chair of the Water Advisory of Committee
of Orange County (WACO), Chair of the OCWD Water Issues Committee and Vice Chair of the
OCWD Communications and Legislative Liaison Committee; and
WHEREAS, prior to Director Green's service on OCWD's Board, she was elected to two
consecutive terms on the Huntington Beach City Council (2002-2010) where she served two
terms as Mayor(2003, 2009). Director Green has been involved as a council liaison and
committee member on many city boards, commissions and committees; and,
WHEREAS, it is the opinion of the OCWD Board of Directors that Director Green possesses all
of the qualities needed to fulfill the duties of the office of ACWA Vice President; and,
NOW, THEREFORE, BE IT RESOLVED, that the OCWD Board of Directors does hereby
nominate and support Director Cathy Green as a candidate for the office of ACWA Vice
President, pledging the District's support of her endeavors in fulfilling the duties of this office if
elected.
PASSED AND ADOP by the OCWD Bo r of Directors at a regular meeting
of said Board held on the 3rdo h 2021.
111_"
J nice urant, District ecretary
Page 164 of 172
U
SINCE 1933
BIOGRAPHY
Cathy Green, 11t Vice President Division 6
Orange County Water District
Service Area: Parts of: Fountain Valley and Huntington Beach
Cathy Green was elected to the Orange County Water District (OCWD) V,
Board of Directors in November 2010 and was re-elected in 2012, 2016
and 2020. She was selected by the board to serve as its 2015 and 2016
president. She currently serves as 1st vice president, a position she
previously held in 2013, 2014 and 2020. s
Prior to Director Green's service on OCWD's board, she was elected to
two consecutive terms on the Huntington Beach City Council where she served two terms as
mayor. Director Green has been involved as a council liaison and committee member on many
city boards, commissions and committees. She served on the Orange County Transportation
Authority Board and was a director of OC Clean Tech.
Director Green's leadership in the water industry includes serving as an active member of the
Association of California Water Agencies (ACWA) since 2012, including serving on ACWA's
Executive Committee since 2020, the ACWA Board since 2016, and the Region 10 Board since
2012. She held the position of ACWA Region 10 Chair from 2018-2019 and served as Vice Chair
since 2020, and previously from 2016-2017. Director Green has also served on several ACWA
Committees including the Water Quality Committee since 2012, the Energy Committee since
2019, and the State Legislative Committee from 2012-2015.
Director Green serves on the boards of the Huntington Valley Boys and Girls Club and the
Orange County Explorer Program; serves on the Huntington Beach City School District Medi-Cal
Collaborative; is a director of the Prime Health Foundation and the Huntington Beach Hospital;
is a member of the American Legion Unit 133 Auxiliary, Huntington Beach Community
Emergency Response Team (CERT) and the Elks Lodge 1959; and is on the Advisory Board of the
Bolsa Chica Conservancy. She is a founding member of Amigos de Bolsa Chica.
In addition, her community involvement has included serving as president of the Therapeutic
Riding Center and the Huntington Beach Community Clinic, chair of the Orange County
Emergency Medical Care Committee and of Explorer's/Learning for Life, first aid chair of
Huntington Beach CERT, and board member of the OC Boy Scouts of America Council and
American Family Housing.
P.O.Box 8300, Fountain Valley,CA 92728-8300• 18700 Ward Street, Fountain Valley,CA 92708
(714)378-3200 Fax(714)378-3373 www.ocwd.com
Page 165 of 172
Director Green is the recipient of many awards. Her most recent is a 2020 Boys and Girls Clubs
of America National Service to Youth Award. In 2010, she was the recipient of the Spurgeon
Award, and, in 2005, she was named Woman of the Year by then State Senator John Campbell.
Other awards include the 2006 United Way Excellence in Child Care Planning, the 2007 Peace
Maker Award from the Greater Huntington Beach Interfaith Council and the Golden West
College Pillar of Achievement Award. She has also been recognized as Huntington Beach's
Citizen of the Year by the Huntington Beach Chamber of Commerce, a Huntington Beach
Soroptimist's Woman of Distinction and a Bolsa Chica Conservancy Conservator of the Year.
Director Green is a registered nurse and holds a degree in law. As a nurse, Director Green
worked in the health care areas of intensive care, student health, community health, and
patient advocacy. In addition to nursing, she gained experience with a variety of environmental
projects while associated with Lockhart and Associates.
Director Green and her husband Peter have been residents of Huntington Beach since 1970
where they raised their two children Teresa and Tom.
Page 166 of 172
ELECT CATHY GREEN A
ACWA VICE PRESIDENT
COMMITMENT - EXPERIENCE - LEADERSHIPA
ACWA BOARD MEMBER
Executive Committee (2020-current)
Region 10 Chair (2018-19]
Region 10 Vice Chair (2016-17, 2020-current]
Region 10 Board Member (2012-current)
ACWA COMMITTEES
Water Quality Committee (2012-current]
Energy Committee (2019-current)
State Legislative Committee (2012-2015)
ORANGE COUNTY WATER DISTRICT, Director (2010-current)
President 2015-16
111 Vice President (2013, 2014, 2019-current]
Water Advisory Committee of Orange County (WACO): Chair
Water Issues Committee: Chair
Communications/Legislative Liaison Committee: Vice Chair
CIVIC LEADERSHIP
City of Huntington Beach Mayor (2003, 20091
Councilwoman (2002-2010)
PROFESSIONAL EXPERIENCE
Registered Nurse
Law degree
My vision for ACWA is to embrace its motto--Bringing Water Together-- which, for me, is about unifying ACWA members and
working collaboratively with diverse stakeholders to find smart solutions to the challenges we are now facing.
Resolution No. 2021-XX – Supporting OCWD 1st Vice Pres Cathy Green as Candidate for Office of ACWA Vice Pres 1
RESOLUTION NO. 2021-XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
TO SUPPORT ORANGE COUNTY WATER DISTRICT
FIRST VICE PRESIDENT CATHY GREEN AS A CANDIDATE
FOR THE OFFICE OF ACWA VICE PRESIDENT
WHEREAS,the Association of California Water Agencies (ACWA) has announced that
a Nominating Committee has been formed to develop a slate for the
ACWA election of its statewide lead officer positions of President and Vice
President; and
WHEREAS,the individual who fills the ACWA Vice President position needs to
possess a working knowledge of water industry issues and concerns,
connections with water professionals throughout the state, strength of
character and leadership capabilities, and experience in matters related to
the performance of the duties of the office; and
WHEREAS,this person must be able to provide the dedication of time and energy to
effectively serve in this capacity; and
WHEREAS,the Yorba Linda Water District recognizes that Director Green has served
on the ACWA Board since 2016, and on the ACWA Board Executive
Committee since 2020; and
WHEREAS,Director Green has served as ACWA Region 10 Chair (2018-19) and is
now serving her second term as ACWA Region 10 Vice Chair (2016-17,
2020-current), and she has served as ACWA Region 10 Board member
since 2012; and
WHEREAS,Director Green serves on the ACWA Water Quality Committee (2012-
current) and the ACWA Energy Committee (2019-current), and she
previously served on the ACWA State Legislative Committee (2012-15);
and
WHEREAS,Director Green has served in a leadership role at Orange County Water
District. She was elected to the OCWD Board of Directors (OCWD Board)
in November 2010 and was re-elected in 2012, 2016 and 2020. She was
selected by the OCWD Board to serve as its 2015 and 2016 President.
She currently serves as First Vice President, a position she previously
held in 2013, 2014, and since 2019; and
WHEREAS,Director Green currently serves as the Chair of the Water Advisory
Committee of Orange County (WACO), Chair of the OCWD Water Issues
Committee, and Vice Chair of the OCWD Communications and Legislative
Liaison Committee; and
Page 168 of 172
Resolution No. 2021-XX – Supporting OCWD 1st Vice Pres Cathy Green as Candidate for Office of ACWA Vice Pres 2
WHEREAS,prior to her service on OCWD's Board, Director Green was elected to two
consecutive terms on the Huntington Beach City Council (2002-2010)
where she served two terms as Mayor (2003, 2009). Director Green has
been involved as a council liaison and active community member on many
city boards, commissions, and committees; and
WHEREAS,it is the opinion of the Yorba Linda Water District Board of Directors that
Director Green possesses all of the qualities needed to fulfill the duties of
the office of ACWA Vice President.
NOW, THEREFORE, BE IT RESOLVED, that the Yorba Linda Water District Board of
Directors does hereby endorse Orange County Water District First Vice President Cathy
Green as a candidate for Vice President of the Association of California Water
Agencies.
PASSED AND ADOPTED this 8th day of June 2021 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Phil Hawkins, 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
Page 169 of 172
ITEM NO. 10.1.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Annie Alexander, Senior Executive Assistant / Board Secretary
SUBJECT:Director's Reports
The Directors will report on their attendance at the following events:
1. OC LAFCO - May 12, 2021
2. ACWA Sprint Virtual Conference - May 12, 2021 (Jones)
3. YL Planning Commission - May 12, 2021 (Hawkins - As Needed)
4. ACWA Spring Virtual Conference - May 13, 2021 (Jones)
5. WACO Planning Committee - May 18, 2021
6. SAWPA Commission - May 18, 2021
7. YL City Council - May 18, 2021 (DesRoches)
8. MWDOC Board - May 19, 2021 (Miller)
9. ACWA Webinar - May 19, 2021 (Jones)
10. OCWA Webinar - May 19, 2021 (Hawkins/Jones/Miller)
11. OCWD Board - May 19, 2021 (DesRoches)
12. OCSD Board - May 26, 2021 (Jones)
13. YL Planning Commission - May 26, 2021 (Hawkins - As Needed)
14. ISDOC - June 1, 2021
15. SAWPA Commission - June 1, 2021
16. YL City Council - June 1, 2021 (Lindsey)
17. MWDOC Board - June 2, 2021 (Miller)
18. OCWD Board - June 2, 2021 (DesRoches)
Page 170 of 172
ITEM NO. 12.1.
AGENDA REPORT
MEETING DATE:June 8, 2021
TO:Board of Directors
FROM:Brett R. Barbre, General Manager
STAFF CONTACTS:Annie Alexander, Senior Executive Assistant / Board Secretary
SUBJECT:Meetings from June 9 - July 31, 2021
ATTACHMENTS:
1.BOD - Activities Calendar
Page 171 of 172
Board of Directors Activity Calendar
Event Date Time Attendees
June
OC LAFCO Wed, Jun 9 8:15 AM
YL Planning Commission Wed, Jun 9 6:30 PM Hawkins (As Needed)
WACO Planning Committee Tue, Jun 15 7:30 AM
SAWPA Commission Tue, Jun 15 9:30 AM
YL City Council Tue, Jun 15 6:30 PM Hawkins
MWDOC Board Wed, Jun 16 8:30 AM Miller
OCWA Webinar Wed, Jun 16 12:30 PM Hawkins/Jones
OCWD Board Wed, Jun 16 5:30 PM DesRoches
OCSD Board Wed, Jun 23 6:00 PM Jones
YL Planning Commission Wed, Jun 23 6:30 PM Hawkins (As Needed)
July
WACO Fri, Jul 2 7:30 AM
ISDOC Executive Committee Tue, Jul 6 7:30 AM
SAWPA Commission Tue, Jul 6 9:30 AM
YL City Council Tue, Jul 6 6:30 PM Miller
MWDOC Board Wed, Jul 7 8:30 AM Miller
OCWD Board Wed, Jul 7 5:30 PM DesRoches
OC LAFCO Wed, Jul 14 8:15 AM
YL Planning Commission Wed, Jul 14 6:30 PM Hawkins (As Needed)
WACO Planning Committee Tue, Jul 20 7:30 AM
SAWPA Commission Tue, Jul 20 9:30 AM
YL City Council Tue, Jul 20 6:30 PM Jones
MWDOC Board Wed, Jul 21 8:30 AM Miller
OCWA Webinar Wed, Jul 21 11:30 AM
OCWD Board Wed, Jul 21 5:30 PM DesRoches
MWDOC/OCWD Joint Planning Committee Wed, Jul 28 8:30 AM Miller/DesRoches
OCSD Board Wed, Jul 28 6:00 PM Jones
YL Planning Commission Wed, Jul 28 6:30 PM Hawkins (As Needed)
ISDOC Thu, Jul 29 11:30 AM
As of June 1, 2021
Page 172 of 172
BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING
Report byGeneral ManagerBoard of Directors Regular Meeting Tuesday, June 8, 2021ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Proposed Water & Sewer Rate StudyFY 2022 to 2026Proposed Water & Sewer RatesFY 2022Presented By: Brett R. BarbreGeneral ManagerItem 7.1ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Yorba Linda Water District•$1.07 billion in replacement value (2018 dollars)•56,000+ individual items to maintain•14 Reservoirs•12 Booster Pump Stations•9 Groundwater Wells•Ability to move water from 250 feet to over 1,390 feet•19 Pressure Zones•369.5 Miles of water mains•268 Miles of sewer mains•Over 25,000 customer connectionsITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021History of Rate Study•Board Discussion in 2019 – save money by not requiring the development of a new Rate Model – Negotiate with Raftelis•Direction Given to Create a Rate that allows the following:1) Maintains the ability to pass through water and power increases on the commodity rate;2) Consider Placing Capital Finance Debt Charges on the Property Tax Rolls – should lead to AAA Bond rating;3) Develop more usableReserves to allow District to fund CIP and provide more flexibility in responding to emergencies;4) Establish, over 10 year period, an MWD Reserve Fund equal to one year’s purchases of MWD Water;5) Implement plan to pay down Unfunded Pension and OPEB Debt. ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021History of Rate Study, Cont.•September 30, 2020 - Board Authorized Notice to Proceed with Raftelis.•November 2020 – Staff began work with Raftelis – schedules, projections and development of assumptions.•February 9, 2021 – First Board Report – adjustments•February 23, 2021 – Second Board Report – Direction to move ahead with development of Rate Study•April 13, 2021 – Rate Study Report Received and Filed•April 22, 2021 – Rate Mailer sent to 29,149 parcel owners•June 8, 2021 – Final Hearing on Rate Study & ApprovalITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Most Common Questions32 Phone Calls & E-mails – Since April 221) Is there a Senior Discount?2) Do the Written Protests have to be handwritten? 3) What is the Unfunded Pension Liability?4) What is funded by the Capital Finance Debt?ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021AnswersQUESTION: Is there a Senior Discount?ANSWER: No.QUESTION: Do the Written Protest have to be handwritten?ANSWER: No.ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021AnswersQUESTION: What is the Unfunded Pension Liability?ANSWER: PERS – $10,413,473OPEB - $1,461,264ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021AnswersQUESTION: What is the Funded by the Capital Finance Debt?ANSWER: Annual Debt Service$2,985,027.60 Projects Funded:Highland Reservoir & Booster Pump Station; Lakeview Reservoir & Booster Pump Station; Hidden Hills Reservoir; Fairmont Booster Pump Station; Yorba Linda Booster Pump Station; PFAS Plant; YLWD Headquarters.ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021PROPOSED RATESFY 2022 TO FY 20261” Meter CustomerITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Max Proposed Rates – FY 2022 to FY 2026Current Proposed MAX Proposed MAX Proposed MAX Proposed MAX Proposed MAX TOTALItemFY 21FY 22 FY 23 FY 24 FY 25 FY 26 FY 22 to FY 261" Meter Rate$37.18$43.13 $47.02 $51.26 $55.88 $60.91$23.73Commodity Rate$2.86$2.64 $2.88 $3.14 $3.43 $3.74$0.88YE Debt Coverage*175%214% 298% 312% 377% 448%n/aYE Days Cash#340242 317 375 408 435n/aMeter Increase$2.40$5.95 $3.89 $4.24 $4.62 $5.03n/aCommodity Increase$0.06-$0.22$0.24 $0.26 $0.29 $0.31n/aPFAS Impact Fee$5.66 (5 mo)$5.66 (6 mo) n/a n/a n/a n/an/aCapital Finance Chargen/a$113.52 $123.84 $135.00 $147.24 $160.56n/aReserves Available for Usen/a$10,666 $5,758,453 $9,712,025 $12,796,421 $15,523,121n/a* - Ratings Agency policy 225%# - Ratings Agency policy 425+ daysITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Proposed Monthly Rates – FY 221” Meter CustomerMonthly Base Charge - $43.13Commodity Rate - $2.64/unitMonthly PFAS Charge - $5.66(expires 12-31-21)Monthly Sewer Charge - $9.55Annual Capital Finance Charge - $113.52ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Monthly Rates – FY 22July 2021 to December 2021 1” Meter Customer; 18 UnitsNote: Capital Finance Charge, included below, to be placed on Property TaxesITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Monthly Rates – FY 22July 2021 to December 2021 1” Meter Customer; 18 UnitsNote: Capital Finance Charge of $113.52 on Property TaxesItem CURRENT FY 2022 - JUL-DECΔ - JUL-DEC1" Meter$37.18$43.13$5.9518 Units$51.48$47.52-$3.96PFAS Impact (JUL-DEC) $5.66$5.66$0.00Sewer$8.10$9.55$1.45TOTALS$102.42$105.86$3.44ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Monthly Rates – FY 22January 2022 to June 2022 1” Meter Customer; 18 UnitsNote: Capital Finance Charge, included below, to be placed on Property TaxesItem CURRENT FY 2022 - JAN-JUNΔ -JAN-JUN1" Meter$37.18$43.13$5.9518 Units$51.48$47.52-$3.96Capital Finance Charge $0.00$9.46$9.46PFAS Impact (JUL-DEC) $5.66$0.00-$5.66Sewer$8.10$9.55$1.45TOTALS$102.42$109.66$7.24ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Monthly Rates – FY 22January 2022 to June 2022 1” Meter Customer; 18 UnitsNote: Capital Finance Charge of $113.52 on Property TaxesItem CURRENT FY 2022 - JAN-JUNΔ -JAN-JUN1" Meter$37.18$43.13$5.9518 Units$51.48$47.52-$3.96PFAS Impact (JUL-DEC) $5.66$0.00-$5.66Sewer$8.10$9.55$1.45TOTALS$102.42$100.20-$2.22ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021ReservesITEM FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026Projected Annual Expenses $31,984,675 $34,571,760 $33,513,386 $35,502,480 $37,189,174 $38,982,233Maintain 365 Coverage (per AA Fitch Credit Profile) $31,984,675 $34,571,760 $33,513,386 $35,502,480 $37,189,174 $38,982,233ProjectedReserve Balance Year End $32,107,231 $34,582,426 $39,271,839 $45,214,505 $49,985,595 $54,505,354Annual Increase of Reserves$781,212 $2,475,195 $4,689,413 $5,942,666 $4,771,090 $4,519,759Cumulative Amount of Reserves Available$781,212 $10,666 $5,758,453 $9,712,025 $12,796,421 $15,523,121YE Debt Coverage Ratio (Policy – 2.25%)1.81% 2.18% 3.02% 3.15% 3.80% 4.52%ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021FINAL COMMENTSITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Proposed Rate Structure Creates the ability to pass through water and power increases on the commodity rate;Places Capital Finance Debt Charges on the Property Tax Roll;Develops more usableReserves which will allow the District to fully fund CIP and provide more flexibility;Establishes new MWD Reserve to fund, over ten years, and amount equal to one year’s purchases of MWD Water;Implements plan to pay down Unfunded Pension and OPEB Liabilities. ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Staff RecommendationThat the Board of Directors:(1) Adopt Resolution No. 2021‐XX establishing new water rate schedules and charges effective July 1, 2021 and rescinding Resolution No. 2020‐18.(2) Adopt Resolution No. 2021‐XX establishing new sewer rate schedules and charges effective July 1, 2021 and rescinding Resolution No. 2019‐17.(3) Adopt Resolution No. 2021‐XX electing to place capital (finance) charges on the property tax roll for collection and remittance to the District and adopting the report to place said charges on the property tax roll for Fiscal Year 2022.ITEM NO. 7.1.
Board of Directors Regular Meeting Tuesday, June 8, 2021Thank You!ITEM NO. 7.1.
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Legislative Update, February 9, 2021 | 1
MEMORANDUM
To: Board of Directors
From: Alison Martin, Public Affairs Manager
Subject: Legislative Update
Date: February 9, 2021
The state and federal legislatures reconvened for new sessions in January, COVID-19
related bills expected to be major focuses this year. Even though it is early in the
session, some bills are worth following.
Federal
H.R. 535 (J. Garamendi, D-CA3) / S. 91 (K. Sinema, D-AZ)
To amend the Social Security Act to include special districts in the coronavirus
relief fund, to direct the Secretary to include special districts as an eligible issuer
under the Municipal Liquidity Facility, and for other purposes.
This is the reintroduction of the Special Districts Provide Essential Services Act. It would
require states to distribute 5 percent of future Coronavirus Relief Fund allocations to
special districts.
CSDA is recommending a support position.
State
AB 377 (R. Rivas, D-AD30)
Water quality: impaired waters.
A bill was introduced this week relating to NPDES permitting. The bill is sponsored by
Coastkeeper and makes significant changes to NPDES permitting procedures, creates a
new enforcement program, and requires all surface water in California to be drinkable,
fishable, and swimmable by 2050. The intent is to address chronic contamination of
impaired receiving waters.
CASA recommends taking an oppose position. There are many circumstances when it
takes longer than the timeframes provided in the bill to determine what needs to be done
and then to implement the projects. CASA is requesting agency staff to join a working
group dedicated to this bill. Since requesting the position on February 8, seven water
districts have expressed an oppose position.
AB 361 (R. Rivas, D-AD30)
Open meetings: local agencies: teleconferences.
CSDA is sponsoring this bill, which will allow public agencies to meet remotely, as they
do now under the Governor’s Executive Orders related to COVID-19.
YLWD staff has concerns about this bill’s possibility to limit public participation at
meetings.
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
Independent, Reliable and Trusted
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Legislative Update, February 9, 2021 | 2
SB 222 & SB 223 (B. Dodd, D-SD3)
Water affordability assistance program. & Discontinuation of residential water
service.
Senator Dodd has authored several water shut-off and water rate assistance bills in
recent years. As an Assemblymember, Dodd authored AB 401 in 2015 and has
introduced sister legislation this year to create a Low-Income Rate Assistance Program,
SB 222. SB 223 follows up SB 998 (Dodd, 2018), which created a one-size-fits-all
statewide water service shutoff law, which ACWA opposed at the Legislature. SB 223
raises many of the same concerns that ACWA members raised in 2018 and raises new
issues regarding the proposed forgiveness of arrearages.
ACWA is taking a watch position on both bills in hopes that Dodd will work toward
amending the legislation.
SB 45 (A. Portantino, D-SD25)
Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood
Protection Bond Act of 2022
This bond, if approved by the voters, would authorize the sale of $5.51 billion in general
obligation bonds. The proposal would appear on the November 2022 ballot.
ACWA recommends support if amended. In 2020, ACWA advocated extensively for a
Climate Resilience Bond that would have made significant investments in water
infrastructure. With each successive legislative session, the need for additional funding
for public water projects continues to grow. ACWA should continue this advocacy in
2021 and work to get a Climate Resilience Bond placed on the November 2022 ballot.
For this reason, ACWA staff recommend adopting a “Support if Amended” position on
SB 45. The amendments that ACWA submits on SB 45 should be largely based on the
funding categories and levels as approved by the State Legislative Committee in 2020
with more technical amendments being revisited by the ACWA Bond Workgroup.
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
State Capitol Office ▪ 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383
Southern California Office ▪ 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215
Central California Office ▪ 744 P Street • Suite 308 • Fresno, CA 93721 • (949) 399 -9050 • Fax (949) 476-8215
Federal Office ▪ 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555
Northern California Office ▪ 300 Frank Ogawa Plaza • Suite 204 • Oakland, CA 94612 • Phone (510) 835 -9050 • Fax (510) 835-9030
M E M O R A N D U M
To: Yorba Linda Water District
From: Townsend Public Affairs
Date: June 8, 2021
Subject: State and Federal Legislative Monthly Report
State Legislative Update
Last month, the Legislature worked to meet several legislative deadlines and examine the
Governor’s May Revise proposal. On May 7, all policy committees were required to pass
legislation that had been deemed non-fiscal to avoid those bills becoming two-year bills. On May
20, the Assembly and Senate appropriations committees met to determine which fiscal bills would
advance in their respective house. The Senate fiscal committee considered 357 bills on its
suspense file while the Assembly fiscal committee met to consider 537 bills. Starting on June 1,
both chambers met only for floor session to consider bills that had yet to meet the June 4 house
of origin deadline. Additionally, on May 19, Senate Pro Tem Atkins and Assembly Speaker
Rendon decided to limit members to 12 bills per offic e for the 2021 legislative year. This means
that each Senator and Assemblymember will only be allowed to s end 12 bills to the opposite
house.
On the budget side, all 11 budget subcommittees (five in the Senate, six in the Assembly) met
during to consider the various proposals included in the Governor’s May Revise. In May, budget
committees held hearings to question Administration officials, heard from fiscal and policy experts
such as the LAO, and provided the public with opportunities to provide feedback on the Governor’s
priorities. The budget subcommittees then made recommendations to the full Budget committees
to consider prior to agreeing on a budget package. Typically, both houses will hold a conference
committee to reconcile the differences between the budget items, but due to the pandemic, a
conference committee is unlikely to take place this year. The Legislature must pass a budget bill
by June 15 and the Governor must sign a budget bill into law by July 1.
Below are the upcoming legislative deadlines:
- June 15: Budget bill must be passed and sent to the Governor
- July 1: Governor must sign budget bill
Governor Newsom’s May Revise
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
2
On May 14, Governor Newsom announced his May Revision to the FY 2021 -22 State Budget.
Leading up to the release of the May Revise, the Governor held multiple events throughout the
State to preview the opportunity for the State to come “roaring back” from the pandemic, to
address long standing challenges, and to provide opportunity for every California family. The May
Revise includes a projected $75.7 billion surplus, combined with $25 billion in federal relief from
the American Rescue Plan.
The State Gann limit caps the amount of revenues from tax proceeds that can be appropriated
by the State. Revenues over the two -year limit must be reallocated evenly between schools and
taxpayer refunds. The Governor’s Budget projects that the State could exceed that limit b y $16.2
billion, and as such, the Governor is allocating that $16.2 billion to tax refunds and to K -14 schools.
The key highlights are summarized below:
Overview
• The FY 2021-22 Budget proposes $196.8 billion in General Fund expenditures
• Includes $24.4 billion in total reserves, including a $15.9 billion balance in the State
Rainy Day Fund
Equitable and Broad-Based Recovery
• Golden State Stimulus II
o $1.5 billion in additional funding, including an additional round of stimulus checks
to middle class families that make an adjusted $75,000 or less.
o Qualified families with dependents, including undocumented families, will be
eligible for an additional $5 00 payment.
o $1.5 billion for three additional rounds of Small Business Grants
• Workforce Development
o $1 billion to establish a Learning Aligned Employment Program
o $160 million to expand existing workforce programs
o $7 billion investment over three years to e xpand broadband infrastructure,
increase affordability, and enhance access to broadband for all Californians
Emergency Response
• $250 million to develop and implement a proposal to prepare California to build disaster
resistant communities and increase statewide resiliency
• $150 million to support the development and enhancement of community resilience
centers – including improving local fairgrounds
• $38.9 million to augment CalFire’s resources for the 2021 fire season
Health and Human Services
• $475 million to expand the CalWORKS Housing Support program
• $280 million to expand the Bringing Families Home program
$150 million for Project Roomkey
• $35 million for a 5-year Universal Basic Income Pilot program
• $1.69 billion to expand Medi-Cal
• $1.1 billion for services to children and families in child welfare programs
• $1.08 billion for COVID-19 response
• $100 million over five years for behavioral health outreach for young people
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
3
Housing and Homelessness
• $1.75 billion to help support HCD affordable housing projects
• $45 million to continue to streamline the development of housing on available excess
state sides
• $500 million for HCD to provide planning and implementation grants to regional entities
for infill development projects
• $2.75 billion for Homekey Family Housing
• $40 million over 5 years to local jurisdictions to develop action plans that address family
homelessness
• $53 million to Caltrans to address homeless encampments along California streets and
freeways
Climate Change and Natural Resources
• $5.1 billion for a water resilience package
o $2.6 billion to expand drinking water, wastewater infrastructure, groundwater
supply projects, water recycling and treatment systems for PFAS
• $989 million for immediate drought support
• $1.3 billion over multiple years to support the Governors efforts to co nserve 30 percent
of lands and coastal waters by 2030
• $826 million in additional investments for Zero Emission vehicles, infrastructure, and
manufacturing
• $108.1 million for outdoor environmental education and access programming
• $125 million to invest in community open spaces through the Urban Greening Program
• $14 million to expand coastal access programming
• $9.1 million to launch a pilot program to expand parks pass distribution for youth in
disadvantaged communities
• $507.3 million to enhance and restore state park facilities
• $55 million to provide grants for new anaerobic digester facilities and to expand capacity
to increase organic waste recycling
Local Public Safety
• $9 million in ongoing funding and $100 million in one -time funding for CalVIP program
for grants for services like community education, diversion programs, and violence
reduction programs
• $23.6 million for county probation departments to supervise the temporary increase in
released offenders as a result of Proposition 57
• $50 million in one-time funding for the Nonprofit Security Grant program to help nonprofit
organizations that are at a high risk of violence and hate crimes
Labor and Workforce Development
• $1.1 billion Jobs Package
• $750 million from the American Rescue Plan to fund the Community Economic
Resilience Fund to support regional and local planning and implementation of strategies
• $160 million for training opportunities and other workforce development programs
• $305.4 million to address the challenges of the Employment Development Department
Transportation
• $1 billion for statewide transit and rail projects
• $500 million Active Transportation augmentation
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
4
• $4.2 billion for High Speed Rail
• $2 billion for the State Highway Rehabilitation and Local Roads and Bridges programs
• $1.4 billion for zero emission green buses or trucks
Cannabis
• $100 million to establish a local jurisdiction assist ance grant program for cannabis
During the next week, the Legislature will make final determinations on each of these items before
voting on a full State Budget bill.
LAO Local Government Fiscal Report
On May 12, the Legislative Analyst Office (LAO) issued a report entitled: “An Initial Look at Effects
of the COVID-19 Pandemic on Local Government Fiscal Condition”. The report analyzes various
impacts of the pandemic on local governments’ fiscal condition over the last year. While the report
admits that not all effects are yet known and the variance between local governments can be wide,
the report makes initial assessments and recommendations on how the State can mitigate the
financial impact to cities.
While the pandemic has resulted in unprecedented economic impacts to local governments, the
report found that property tax revenue, one of local governments’ most significant sources of
revenue, has remained relatively stable. Sales and use tax, as well a s transit occupancy tax (TOT)
revenues have been more directly impacted, as have local government finances. These revenue
changes have also come at a time when the pandemic has increased the costs of local
governments to provide essential services to residents.
While the state and federal governments have issued flexible relief dollars to local governments,
there have been significant differences in which local governments received their funding. The
report states that some local governments have received sizable relief funding, particularly in
comparison to their losses and overall annual budgets, and some have received less or none of
the funding authorized in state and federal law.
Lastly, the LAO recommends that the Legislature not spend all of its federal American Rescue
Plan Act (ARPA) dollars at once, but rather wait until the impact of the pandemic is more fully
understood. Then, should the Legislature decide to assist local governments with a portion of
California’s ARPA funds, it should do so in a targeted way that considers whether the local
government has experienced:
• Significant reduction in sales tax revenue
• Significant reduction in TOT revenue
• Significant reduction in user fee revenue
• Lower levels of federal relief funding
The report notes that the state has until December 31, 2024 to spend its ARPA allocation and
recommends taking a measured, thoughtful, and slower approach to allocating its funds.
June 15 Re-Opening Guidance
On May 21, the Department of Public Health announced that the State will move beyond the
Blueprint for a Safer Economy to allow businesses to return to normal operations by June 15. All
sectors listed in the current activities and business tier chart may return to “usual operations” with
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
5
limited exceptions. Additionally, the State has released general health recommendations,
including:
• No capacity limitations
• No physical distancing limitation for attendees, customers, and guests who are fully
vaccinated
• Face mask requirements to follow CDC guidelines
• Travel restrictions to follow the CDC recommendations
• Verification of fully vaccinated status or pre -entry negative test results will be required to
attend “Indoor Mega Events” (5,000 attendees or more). For “Outdoor Mega Events”
(10,000 attendees or more), vaccination or negative tests will be strongly recom mended
The State has recommended that employers should monitor and review the directives in the
regions where they operate and monitor the latest COVID -19 prevention measures. The
requirements for testing and vaccine verification will be in place from Jun e 15 – October 1. In
September, the State will assess the current conditions to determine whether additional updates
are needed.
Federal Legislative Update
In May, the House and Senate continued negotiations on a number of legislative and budgetary
issues, including a bi-partisan agreement on an infrastructure package, as well as funding
priorities for the upcoming fiscal year. Congressional leaders have been meeting with the
Administration to finalize the size and scope of a transportation re-authorization but are not
expected to come to a compromise as the cost differences between both proposals are more than
$700 billion. More than likely, Congressional Democrats will need to whip votes in order to pass
a package by a slim majority.
The House Appropriations Committee is also planning to begin marking up its FY 2022 spending
bills in the month of June with floor activity to follow in July. The Senate plans to begin its work on
its spending bills in July, however, a continuing resolution is the likely vehicle to avoid a
government shutdown in October.
President Biden Releases Federal Budget Proposal
On May 28, President Biden proposed a $6 trillion budget for fiscal year 2022. The budget
proposal includes aggressive increases in federal spending that will seek to transform the
American economy as the country emerges from the COVID pandemic. The proposal calls for the
most sustained period of spending in more than half a century. The President’s budget serves
more as a marker of administration priorities and would invest heavily in infrastructure, education,
research, public health, paid family leave and childcare.
The proposal includes the American Jobs Plan and the American Families Plan, as well as the $4
trillion infrastructure, jobs and economic proposal that the President had previously laid out and
is negotiating with lawmakers. It also outlines additional fun ds to launch a new health research
agency to focus on diseases like cancer, and funds to address gun violence, tackle the climate
crisis, help end homelessness and curb the opioid epidemic.
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
6
Budget projections show a $6 trillion price tag with spending ste adily increasing each year until
the budget reaches $8.2 trillion in 2031. The budget would reduce the annual deficit beginning in
2030 and by increasing amounts in the following years and would shrink deficits by more than $2
trillion in the subsequent decade. Under this budget, projections show debt as a percentage of
Gross Domestic Product has already reached 100% and will increase to 117% by 2031.
President Biden is asking Congress for $932 billion for discretionary, non -defense programs for
fiscal year 2022 -- a significant increase from last year. The President has also proposed $756
billion in defense funding, which is also an uptick from last year.
In addition to the American Jobs Plan and the American Families plan, the budget proposal
includes the following:
• $36.5 billion for Title I schools, in which children from low-income families make up at least
40% of enrollment. It's a $20 billion increase from 2021 enacted levels
• $8.7 billion in discretionary funding for the US Centers for Disease Con trol and Prevention
• $10.7 billion in discretionary funding in the Department of Health and Human Services, an
increase of $3.9 billion from 2021 enacted levels. The proposal also includes $621 million
specific to the Department of Veterans Affairs' Opioid Prevention and Treatment programs
• An increase of more than $14 billion compared to 2021 enacted levels across nearly every
agency to tackle the climate crisis
• $2.1 billion for the Department of Justice to address gun violence, which is an increase of
$232 million above 2021 enacted levels
• $30.4 billion for Housing Choice Vouchers to expand housing assistance to 200,000
additional families, and a $500 million increase for Homeless Assistance Grants to support
more than 100,000 households, including survivors of domestic violence and homeless
youth
• $1 billion for Department of Justice Violence Against Women Act programs, which is
nearly double 2021 enacted levels
• Increases the budget of the Executive Office for Immigration Review by 21% to $891
million to reduce court backlogs and hire 100 new immigration judges and support teams
Notably, the package does not include a healthcare public option – the President is looking to
Congress to help him create a public option as well as pass a bill that permits Medicare to
negotiate with pharmaceutical companies on drug prices.
Federal budget funding expires on September 30, 2021 with the new federal fiscal year beginning
on October 1, 2021. Current federal budget funding was authorized through HR 133, the
pandemic and omnibus package that was signed into law by former President Trump on
December 27, 2020 during the lame duck sess ion.
Non-discretionary spending must be re -authorized by Congress each year, beginning with all 12
funding bills originating in the House Appropriations Committee. The Committee has already
begun its work on the FY 2021 -22 federal budget, and a budget re solution has already been
passed that allowed for the most recent COVID -19 relief bill to be passed through the budget
reconciliation process.
State and Local Funding
Last month, the Department of Treasury issued guidance on the Coronavirus State and L ocal
Fiscal Recovery Fund. States, counties, and metropolitan cities can begin requesting funding
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
7
through the US Treasury’s Submission Portal. For non-entitlement jurisdictions, funding will be
distributed from the State, and there is no need to request funding through the portal. The
American Rescue Plan requires States to distribute the first tranche of funding to non -entitlement
jurisdictions within 30 days, and as expected, the funding will be given in two tranches with the
second tranche being paid 12 months after the first payment.
Recipients may use these funds to:
• Support public health expenditures, by, for example, funding COVID-19 mitigation
efforts, medical expenses, behavioral healthcare, and certain public health and safety
staff, includes capital investments in public facilities to meet pandemic operational needs
like health clinics or other adaptations to public buildings
• Address negative economic impacts caused by the public health emergency,
including economic harms to workers, househo lds, small businesses, households
impacted industries, and the public sector
o Also includes rehiring local government staff and premium pay for eligible workers
o Includes funding for industries impacted by tourism
• Replace lost public sector revenue, using this funding to provide government services
to the extent of the reduction in revenue experienced due to the pandemic . This is the
most flexible category of funding.
o Defines “general revenue” to include revenues collected by a recipient and
generated from its underlying economy including intergovernmental transfers
between state and local governments.
o Government services includes any projects that a local jurisdiction would normally
fund, including but not limited to, street repairs, parks and recrea tion projects,
library services, and senior services.
o Proves a formula to calculate loss
• Invest in water, sewer, and broadband infrastructure
Other eligible uses include:
• Expenses of providing paid sick and paid family and medical leave to public employees
• Supportive housing or other programs to improve access to affordable housing
• Housing vouchers
• Development of affordable housing
The Department indicated that the final rule will be published in the Federal Register and would
solicit comments on or before July 16, 2021.
CDC Mask Guidance
On May 13, the Center for Disease Control changed its guidance to indicate that f ully vaccinated
Americans can largely do away with wearing masks, which is the most significant shift in federal
guidelines since the start of the pandemic. Formal guidance on the CDC’s website specifies that
the agency still recommends vaccinated people wear masks on “planes, buses, trains and other
forms of public transportation.” Other exceptions include wearing masks in health-care facilities,
prisons, and homeless shelters, as well as places where state and local governments or
businesses are requiring masks. Approximately 59 percent of American adults have received at
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
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least one shot, and the Covid-19 vaccine made by Pfizer and BioNTech was cleared for use in
children ages 12 to 15 years old in May.
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
Yorba Linda Water District
Tuesday, June 08, 2021
AB 59 (Gabriel D) Mitigation Fee Act: fees: notice and timelines.
Current Text: Introduced: 12/7/2020 html pdf
Introduced: 12/7/2020
Status: 4/30/2021-Failed Deadline pursuant to Rule 61(a)(2). (Last location was L. GOV. on 1/11/2021)
(May be acted upon Jan 2022)
Location: 4/30/2021-A. 2 YEAR
Desk 2 year Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law authorizes any party to protest the imposition of a fee, dedication, reservation,
or other exactions imposed on a development project within 90 or 120 days of the imposition of the
fee, as applicable, and specifies procedures for those protests and actions. The Mitigation Fee Act
imposes the same requirements on a local agency for a new or increased fee for public facilities.
Current law, for specified fees, requires any judicial action or proceeding to attack, review, set aside,
void, or annul an ordinance, resolution, or motion adopting a new fee or service charge or modifying an
existing fee or service charge to be commenced within 120 days of the effective date of the ordinance,
resolution, or motion. Current law also provides that, if an ordinance, resolution, or motion provides for
an automatic adjustment in a fee or service charge and the adjustment results in an increase in the
fee or service charge, that any action to attack, review, set aside, void, or annul the increase to be
commenced within 120 days of the increase. This bill would increase, for fees and service charges and
for fees for specified public facilities, the time for mailing the notice of the time and place of the meeting
to at least 45 days before the meeting.
AB 95 (Low D) Employees: bereavement leave.
Current Text: Amended: 3/22/2021 html pdf
Introduced: 12/7/2020
Last Amend: 3/22/2021
Status: 5/25/2021-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. SUSPENSE FILE
on 4/21/2021)(May be acted upon Jan 2022)
Location: 5/25/2021-A. 2 YEAR
Desk Policy 2 year Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would enact the Bereavement Leave Act of 2021. The bill would require an employer with
25 or more employees to grant a request made by any employee to take up to 10 business days of
unpaid bereavement leave upon the death of a spouse, child, parent, sibling, grandparent, grandchild,
or domestic partner, in accordance with certain procedures, and subject to certain exclusions. The bill
would require an employer with fewer than 25 employees to grant a request by any employee to take
up to 3 business days of leave, in accordance with these provisions. The bill would prohibit an
employer from interfering with or restraining the exercise or attempt to exercise the employee’s right
to take this leave.
AB 100 (Holden D) Drinking water: pipes and fittings: lead content.
Current Text: Amended: 4/5/2021 html pdf
Introduced: 12/11/2020
Last Amend: 4/5/2021
Status: 5/28/2021-In Senate. Read first time. To Com. on RLS. for assignment.
Location: 5/28/2021-S. RLS.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: The California Safe Drinking Water Act prohibits, with certain exceptions, the use of any
pipe, pipe or plumbing fitting or fixture, solder, or flux that is not lead free in the installation or repair of
any public water system or any plumbing in a facility providing water for human consumption. The act
defines “lead free” for purposes of conveying or dispensing water for human consumption to mean not
more than 0.2% lead when used with respect to solder and flux and not more than a weighted
average of 0.25% lead when used with respect to the wetted surfaces of pipes and pipe fittings,
plumbing fittings, and fixtures. This bill would additionally define “lead free,” with respect to endpoint
devices, as defined, to mean that the devices do not leach more than one microgram of lead under
certain tests and meeting a specified certification.
AB 230 (Voepel R) Employment: flexible work schedules.
Current Text: Introduced: 1/12/2021 html pdf
Introduced: 1/12/2021
Status: 4/30/2021-Failed Deadline pursuant to Rule 61(a)(2). (Last location was L. & E. on 1/28/2021)
(May be acted upon Jan 2022)Page 1/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
(May be acted upon Jan 2022)
Location: 4/30/2021-A. 2 YEAR
Desk 2 year Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would enact the Workplace Flexibility Act of 2021. The bill would permit an individual
nonexempt employee to request an employee-selected flexible work schedule providing for workdays
up to 10 hours per day within a 40-hour workweek, and would allow an employer to implement this
schedule without the obligation to pay overtime compensation for those additional hours in a workday,
except as specified. The bill would require that the flexible work schedule contain specified information
and the employer’s and the employee’s original signature. The bill would also require the Division of
Labor Standards Enforcement in the Department of Industrial Relations to enforce this provision and
adopt regulations.
AB 339 (Lee D) Local government: open and public meetings.
Current Text: Amended: 5/4/2021 html pdf
Introduced: 1/28/2021
Last Amend: 5/4/2021
Status: 6/3/2021-In Senate. Read first time. To Com. on RLS. for assignment.
Location: 6/3/2021-S. RLS.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would, until December 31, 2023, require all open and public meetings of a city council or a
county board of supervisors that governs a jurisdiction containing least 250,000 people to include an
opportunity for members of the public to attend via a telephonic option or an internet-based service
option. The bill would require all open and public meetings to include an in-person public comment
opportunity, except in specified circumstances during a declared state or local emergency. The bill
would require all meetings to provide the public with an opportunity to comment on proposed
legislation in person and remotely via a telephonic or an internet-based service option, as provided.
AB 361 (Rivas, Robert D) Open meetings: local agencies: teleconferences.
Current Text: Amended: 5/10/2021 html pdf
Introduced: 2/1/2021
Last Amend: 5/10/2021
Status: 5/27/2021-Referred to Coms. on GOV. & F. and JUD.
Location: 5/27/2021-S. GOV. & F.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would authorize a local agency to use teleconferencing without complying with the
teleconferencing requirements imposed by the Ralph M. Brown Act when a legislative body of a local
agency holds a meeting for the purpose of declaring or ratifying a local emergency, during a declared
state of emergency or local emergency, as those terms are defined, when state or local health officials
have imposed or recommended measures to promote social distancing, and during a declared local
emergency provided the legislative body determines, by majority vote, that meeting in person would
present imminent risks to the health or safety of attendees.
AB 377 (Rivas, Robert D) Water quality: impaired waters.
Current Text: Amended: 4/13/2021 html pdf
Introduced: 2/1/2021
Last Amend: 4/13/2021
Status: 5/25/2021-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. SUSPENSE FILE
on 5/19/2021)(May be acted upon Jan 2022)
Location: 5/25/2021-A. 2 YEAR
Desk Policy 2 year Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would require, by January 1, 2023, the State Water Resources Control Board and regional
boards to prioritize enforcement of all water quality standard violations that are causing or
contributing to an exceedance of a water quality standard in a surface water of the state. The bill
would require the state board and regional boards, by January 1, 2025, to evaluate impaired state
surface waters and report to the Legislature a plan to bring all water segments into attainment by
January 1, 2050. The bill would require the state board and regional boards to update the report with
a progress summary to the Legislature every 5 years. The bill would create the Waterway Recovery
Account in the Waste Discharge Permit Fund and would make moneys in the Waterway Recovery
Account available for the state board to expend, upon appropriation by the Legislature, to bring
impaired water segments into attainment in accordance with the plan.
Page 2/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
AB 460 (Mayes I) Fire protection: residential fire sprinklers: fees.
Current Text: Amended: 3/25/2021 html pdf
Introduced: 2/8/2021
Last Amend: 3/25/2021
Status: 4/30/2021-Failed Deadline pursuant to Rule 61(a)(2). (Last location was L. GOV. on 3/25/2021)
(May be acted upon Jan 2022)
Location: 4/30/2021-A. 2 YEAR
Desk 2 year Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law authorizes any public agency providing water for fire protection purposes to,
by ordinance or resolution, fix and collect a charge to pay the costs of operation, installation, capital,
maintenance, repair, alteration, or replacement of facilities and equipment related to supplying water
for fire protection purposes. Current law authorizes specified local jurisdictions and fire protection
districts to make changes or modifications that are more stringent than specified state standards, as
provided. Current law neither authorizes nor prohibits a local jurisdiction or a fire protection district
from mandating the installation of residential fire sprinkler systems within newly constructed or
existing dwelling units. This bill, among other things, would, as provided, prohibit water-related fees
imposed on the owner of residential property from being affected by the installation of a residential fire
sprinkler system on that residential property, including those residential fire sprinkler systems
mandated by a local jurisdiction or a fire protection district.
AB 622 (Friedman D) Washing machines: microfiber filtration.
Current Text: Introduced: 2/12/2021 html pdf
Introduced: 2/12/2021
Status: 5/7/2021-Failed Deadline pursuant to Rule 61(a)(3). (Last location was E.S. & T.M. on
2/25/2021)(May be acted upon Jan 2021)
Location: 5/7/2021-A. 2 YEAR
Desk 2 year Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law, to protect public health and water quality, regulates a broad range of
consumer products and processes, including water softeners, water treatment devices, and backflow
prevention devices, among others.This bill would require, on or before January 1, 2024, that all
washing machines sold as new in California contain a microfiber filtration system with a mesh size of
100 microns or smaller.
AB 703 (Rubio, Blanca D) Open meetings: local agencies: teleconferences.
Current Text: Amended: 4/29/2021 html pdf
Introduced: 2/16/2021
Last Amend: 4/29/2021
Status: 5/7/2021-Failed Deadline pursuant to Rule 61(a)(3). (Last location was L. GOV. on 2/25/2021)
(May be acted upon Jan 2021)
Location: 5/7/2021-A. 2 YEAR
Desk 2 year Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law, by Executive Order N-29-20, suspends the Ralph M. Brown Act’s requirements
for teleconferencing during the COVID-19 pandemic, provided that notice requirements are met, the
ability of the public to observe and comment is preserved, as specified, and that a local agency
permitting teleconferencing have a procedure for receiving and swiftly resolving requests for
reasonable accommodation for individuals with disabilities, as specified. This bill would remove the
notice requirements particular to teleconferencing and would revise the requirements of the act to
allow for teleconferencing subject to existing provisions regarding the posting of notice of an agenda,
provided that the public is allowed to observe the meeting and address the legislative body directly
both in person and remotely via a call-in option or internet-based service option, and that a quorum of
members participate in person from a singular physical location clearly identified on the agenda that is
open to the public and situated within the jurisdiction.
AB 802 (Bloom D) Microfiber pollution.
Current Text: Introduced: 2/16/2021 html pdf
Introduced: 2/16/2021
Status: 4/30/2021-Failed Deadline pursuant to Rule 61(a)(2). (Last location was E.S. & T.M. on
2/25/2021)(May be acted upon Jan 2022)
Location: 4/30/2021-A. 2 YEAR
Desk 2 year Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would require the Water Resources Control Board to identify the best available control
Page 3/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
technology for filtering microfibers from an industrial, institutional, or commercial laundry facility on or
before an unspecified date, and would require the state board to consult with owners and operators
of laundry facilities on the types of filtration systems currently in use and with universities, scientific
organizations, and experts on plastic pollution in identifying the best available control technology. The
bill would also require, on or before an unspecified date, any entity that operates an industrial,
institutional, or commercial laundry facility to adopt the use of the best available control technology to
capture microfibers that are shed during washing.
AB 818 (Bloom D) Solid waste: premoistened nonwoven disposable wipes.
Current Text: Introduced: 2/16/2021 html pdf
Introduced: 2/16/2021
Status: 5/27/2021-Referred to Coms. on E.Q. and JUD.
Location: 5/27/2021-S. E.Q.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would require, except as provided, certain premoistened nonwoven disposable wipes
manufactured on or after July 1, 2022, to be labeled clearly and conspicuously with the phrase “Do Not
Flush” and a related symbol, as specified. The bill would prohibit a covered entity, as defined, from
making a representation about the flushable attributes, benefits, performance, or efficacy of those
premoistened nonwoven disposable wipes, as provided. The bill would establish enforcement
provisions, including authorizing a civil penalty not to exceed $2,500 per day, up to a maximum of
$100,000 per violation, to be imposed on a covered entity who violates those provisions.
AB 850 (Gallagher R) City property: sale of water utility property.
Current Text: Amended: 3/22/2021 html pdf
Introduced: 2/17/2021
Last Amend: 3/22/2021
Status: 5/28/2021-In Senate. Read first time. To Com. on RLS. for assignment.
Location: 5/28/2021-S. RLS.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law, until January 1, 2022, authorizes the City of El Monte, the City of Montebello,
and the City of Willows to sell its public utility for furnishing water service for the purpose of
consolidating the system with another public water system, as specified, subject to additional
requirements.This bill would extend the authorization to consolidate water systems until January 1,
2024.
AB 1200 (Ting D) Plant-based food packaging: cookware: hazardous chemicals.
Current Text: Amended: 3/29/2021 html pdf
Introduced: 2/18/2021
Last Amend: 3/29/2021
Status: 5/12/2021-Referred to Coms. on HEALTH and E.Q.
Location: 5/12/2021-S. HEALTH
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would prohibit, beginning January 1, 2023, any person from distributing, selling, or offering
for sale in the state any food packaging that contains intentionally added perfluoroalkyl and
polyfluoroalkyl substances or PFAS, as defined. The bill would require a manufacturer to use the least
toxic alternative when replacing PFAS chemicals. The bill would define “food packaging,” in part, to
mean a nondurable package, packaging component, or food service ware that is comprised, in
substantial part, of paper, paperboard, or other materials originally derived from plant fibers.
AB 1250 (Calderon D) Water and sewer system corporations: consolidation of service.
Current Text: Amended: 5/24/2021 html pdf
Introduced: 2/19/2021
Last Amend: 5/24/2021
Status: 6/2/2021-In Senate. Read first time. To Com. on RLS. for assignment.
Location: 6/2/2021-S. RLS.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: The California Safe Drinking Water Act, provides for the operation of public water systems
and imposes on the State Water Resources Control Board related regulatory responsibilities and
duties. Current law authorizes the state board to order consolidation of public water systems where a
public water system or state small water system serving a disadvantaged community consistently fails
to provide an adequate supply of safe drinking water, as provided. This bill, the Consolidation for Safe
Page 4/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
Drinking Water Act of 2021, would authorize a water or sewer system corporation to file an application
and obtain approval from the commission through an order authorizing the water or sewer system
corporation to consolidate with a public water system or state small water system. The bill would
require the commission to approve or deny the application within 8 months, except as provided.
AB 1434 (Friedman D) Urban water use objectives: indoor residential water use.
Current Text: Amended: 4/19/2021 html pdf
Introduced: 2/19/2021
Last Amend: 4/19/2021
Status: 5/25/2021-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. on 4/27/2021)
(May be acted upon Jan 2022)
Location: 5/25/2021-A. 2 YEAR
Desk Policy 2 year Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would establish, beginning January 1, 2023, until January 1, 2025, the standard for indoor
residential water use as 48 gallons per capita daily. The bill would establish, beginning January 1,
2025, the standard as 44 gallons per capita daily and, beginning January 1, 2030, 40 gallons per
capita daily.
AB 1500 (Garcia, Eduardo D) Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood
Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2022.
Current Text: Amended: 5/11/2021 html pdf
Introduced: 2/19/2021
Last Amend: 5/11/2021
Status: 5/20/2021-Joint Rule 62(a), file notice suspended. From committee: Do pass and re-refer to
Com. on RLS. (Ayes 12. Noes 3.) (May 20). Re-referred to Com. on RLS.
Location: 5/20/2021-A. RLS.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would enact the Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood
Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2022, which, if approved
by the voters, would authorize the issuance of bonds in the amount of $7,080,000,000 pursuant to
the State General Obligation Bond Law to finance projects for safe drinking water, wildfire prevention,
drought preparation, flood protection, extreme heat mitigation, and workforce development programs.
SB 5 (Atkins D) Affordable Housing Bond Act of 2022.
Current Text: Amended: 3/10/2021 html pdf
Introduced: 12/7/2020
Last Amend: 3/10/2021
Status: 3/18/2021-Re-referred to Coms. on HOUSING and GOV. & F.
Location: 3/18/2021-S. HOUSING
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would enact the Affordable Housing Bond Act of 2022, which, if adopted, would authorize
the issuance of bonds in the amount of $6,500,000,000 pursuant to the State General Obligation Bond
Law. Proceeds from the sale of these bonds would be used to fund affordable rental housing and
homeownership programs. The bill would state the intent of the Legislature to determine the allocation
of those funds to specific programs.This bill would provide for submission of the bond act to the voters
at the November 8, 2022, statewide general election in accordance with specified law.
SB 6 (Caballero D) Local planning: housing: commercial zones.
Current Text: Amended: 4/12/2021 html pdf
Introduced: 12/7/2020
Last Amend: 4/12/2021
Status: 5/24/2021-Read third time. Passed. (Ayes 32. Noes 2.) Ordered to the Assembly. In Assembly.
Read first time. Held at Desk.
Location: 5/24/2021-A. DESK
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive,
long-term general plan for its physical development, and the development of certain lands outside its
boundaries, that includes, among other mandatory elements, a housing element. This bill, the
Neighborhood Homes Act, would deem a housing development project, as defined, an allowable use
on a neighborhood lot, which is defined as a parcel within an office or retail commercial zone that is not
adjacent to an industrial use. The bill would require the density for a housing development under
Page 5/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
these provisions to meet or exceed the density deemed appropriate to accommodate housing for
lower income households according to the type of local jurisdiction, including a density of at least 20
units per acre for a suburban jurisdiction.
SB 9 (Atkins D) Housing development: approvals.
Current Text: Amended: 4/27/2021 html pdf
Introduced: 12/7/2020
Last Amend: 4/27/2021
Status: 6/3/2021-Referred to Coms. on L. GOV. and H. & C.D.
Location: 6/3/2021-A. L. GOV.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: The Planning and Zoning Law provides for the creation of accessory dwelling units by local
ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance
with specified standards and conditions.This bill, among other things, would require a proposed
housing development containing no more than 2 residential units within a single-family residential
zone to be considered ministerially, without discretionary review or hearing, if the proposed housing
development meets certain requirements, including, but not limited to, that the proposed housing
development would not require demolition or alteration of housing that is subject to a recorded
covenant, ordinance, or law that restricts rents to levels affordable to persons and families of
moderate, low, or very low income, that the proposed housing development does not allow for the
demolition of more than 25% of the existing exterior structural walls, except as provided, and that the
development is not located within a historic district, is not included on the State Historic Resources
Inventory, or is not within a site that is legally designated or listed as a city or county landmark or
historic property or district.
SB 45 (Portantino D) Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood
Protection Bond Act of 2022.
Current Text: Amended: 4/8/2021 html pdf
Introduced: 12/7/2020
Last Amend: 4/8/2021
Status: 6/1/2021-Ordered to inactive file on request of Senator Portantino.
Location: 6/1/2021-S. INACTIVE FILE
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would enact the Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood
Protection Bond Act of 2022, which, if approved by the voters, would authorize the issuance of bonds
in the amount of $5,595,000,000 pursuant to the State General Obligation Bond Law to finance
projects for a wildfire prevention, safe drinking water, drought preparation, and flood protection
program.
SB 222 (Dodd D) Water Rate Assistance Program.
Current Text: Amended: 5/20/2021 html pdf
Introduced: 1/14/2021
Last Amend: 5/20/2021
Status: 6/2/2021-In Assembly. Read first time. Held at Desk.
Location: 6/1/2021-A. DESK
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: This bill would establish the Water Rate Assistance Fund in the State Treasury to help
provide water affordability assistance, for both drinking water and wastewater services, to low-income
ratepayers and ratepayers experiencing economic hardship in California. The bill would require the
Department of Community Services and Development to develop and administer the Water Rate
Assistance Program established by the bill.
SB 223 (Dodd D) Discontinuation of residential water service.
Current Text: Amended: 5/3/2021 html pdf
Introduced: 1/14/2021
Last Amend: 5/3/2021
Status: 5/25/2021-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. SUSPENSE FILE
on 5/17/2021)(May be acted upon Jan 2022)
Location: 5/25/2021-S. 2 YEAR
Desk Policy 2 year Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law requires an urban and community water system to have a written policy on
Page 6/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
discontinuation of residential service for nonpayment, including, among other things, specified options
for addressing the nonpayment. Current law requires an urban and community water system to
provide notice of that policy to customers, as provided. This bill would apply those provisions, on and
after July 1, 2022, to a very small community water system, defined as a public water system that
supplies water to 200 or fewer service connections used by year long residents.
SB 230 (Portantino D) State Water Resources Control Board: Constituents of Emerging Concern
Program.
Current Text: Introduced: 1/19/2021 html pdf
Introduced: 1/19/2021
Status: 5/25/2021-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. on 3/15/2021)
(May be acted upon Jan 2022)
Location: 5/25/2021-S. 2 YEAR
Desk Policy 2 year Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would require the State Water Resources Control Board to establish, maintain, and direct
an ongoing, dedicated program called the Constituents of Emerging Concern Program to assess the
state of information and recommend areas for further study on, among other things, the occurrence of
constituents of emerging concern (CEC) in drinking water sources and treated drinking water. The bill
would require the state board to convene, by an unspecified date, the Science Advisory Panel to
review and provide recommendations to the state board on CEC for further action, among other
duties. The bill would require the state board to provide an annual report to the Legislature on the
ongoing work conducted by the panel.
SB 273 (Hertzberg D) Water quality: municipal wastewater agencies.
Current Text: Introduced: 1/29/2021 html pdf
Introduced: 1/29/2021
Status: 5/13/2021-Referred to Coms. on L. GOV. and E.S. & T.M.
Location: 5/13/2021-A. L. GOV.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would authorize a municipal wastewater agency, as defined, to enter into agreements with
entities responsible for stormwater management for the purpose of managing stormwater and dry
weather runoff, to acquire, construct, expand, operate, maintain, and provide facilities for specified
purposes relating to managing stormwater and dry weather runoff, and to levy taxes, fees, and
charges consistent with the municipal wastewater agency’s existing authority in order to fund projects
undertaken pursuant to the bill. The bill would require the exercise of any new authority granted under
the bill to comply with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. To
the extent this requirement would impose new duties on local agency formation commissions, the bill
would impose a state-mandated local program.
SB 274 (Wieckowski D) Local government meetings: agenda and documents.
Current Text: Amended: 4/5/2021 html pdf
Introduced: 1/29/2021
Last Amend: 4/5/2021
Status: 5/13/2021-Referred to Com. on L. GOV.
Location: 5/13/2021-A. L. GOV.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: The Ralph M. Brown Act requires meetings of the legislative body of a local agency to be
open and public and also requires regular and special meetings of the legislative body to be held
within the boundaries of the territory over which the local agency exercises jurisdiction, with specified
exceptions. Current law authorizes a person to request that a copy of an agenda, or a copy of all the
documents constituting the agenda packet, of any meeting of a legislative body be mailed to that
person. This bill would require a local agency with an internet website, or its designee, to email a copy
of, or website link to, the agenda or a copy of all the documents constituting the agenda packet if the
person requests that the items be delivered by email. If a local agency determines it to be
technologically infeasible to send a copy of the documents or a link to a website that contains the
documents by email or by other electronic means, the bill would require the legislative body or its
designee to send by mail a copy of the agenda or a website link to the agenda and to mail a copy of all
other documents constituting the agenda packet, as specified.
SB 323 (Caballero D) Local government: water or sewer service: legal actions.
Current Text: Amended: 3/17/2021 html pdf
Introduced: 2/5/2021
Last Amend: 3/17/2021
Page 7/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
Status: 5/13/2021-Referred to Coms. on L. GOV. and JUD.
Location: 5/13/2021-A. L. GOV.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law prohibits a local agency from imposing fees for specified purposes, including
fees for water or sewer connections, as defined, that exceed the estimated reasonable cost of
providing the service for which the fee is charged, unless voter approval is obtained. Current law
provides that a local agency levying a new a water or sewer connection fee or increasing a fee must
do so by ordinance or resolution. Current law requires, for specified fees, including water or sewer
connection fees, any judicial action or proceeding to attack, review, set aside, void, or annul an
ordinance, resolution, or motion adopting a new fee or service charge or modifying an existing fee or
service charge to be commenced within 120 days of the effective date of the ordinance, resolution, or
motion according to specified procedures for validation proceedings. This bill would apply the same
judicial action procedure and timelines, as stated above, to ordinances, resolutions, or motions
adopting, modifying, or amending water or sewer service fees or charges adopted after January 1,
2022, except as provided.
SB 351 (Caballero D) Water Innovation Act of 2021.
Current Text: Amended: 4/20/2021 html pdf
Introduced: 2/9/2021
Last Amend: 4/20/2021
Status: 5/25/2021-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. SUSPENSE FILE
on 5/10/2021)(May be acted upon Jan 2022)
Location: 5/25/2021-S. 2 YEAR
Desk Policy 2 year Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law establishes the State Water Resources Control Board for the purposes of
providing for the orderly and efficient administration of the water resources of the state. This bill, the
Water Innovation Act of 2021, would create the Office of Water Innovation at the California Water
Commission for the furtherance of new technologies and other innovative approaches in the water
sector. The bill would require the office, by December 31, 2023, to take specified measures to advance
innovation in the water sector. The bill would make findings and declarations regarding the need for
water innovation.
SB 403 (Gonzalez D) Drinking water: consolidation.
Current Text: Amended: 4/27/2021 html pdf
Introduced: 2/12/2021
Last Amend: 4/27/2021
Status: 5/28/2021-Referred to Coms. on E.S. & T.M. and L. GOV.
Location: 5/28/2021-A. E.S. & T.M.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: The California Safe Drinking Water Act authorizes the State Water Resources Control Board
to order consolidation with a receiving water system where a public water system or a state small
water system, serving a disadvantaged community, consistently fails to provide an adequate supply of
safe drinking water or where a disadvantaged community is substantially reliant on domestic wells
that consistently fail to provide an adequate supply of safe drinking water. This bill would authorize the
state board to also order consolidation where a water system serving a disadvantaged community is
an at-risk water system, as defined, or where a disadvantaged community is substantially reliant on
at-risk domestic wells, as defined.
SB 426 (Rubio D) Municipal separate storm sewer systems: financial capability analysis.
Current Text: Amended: 3/1/2021 html pdf
Introduced: 2/12/2021
Last Amend: 3/1/2021
Status: 6/4/2021-Failed Deadline pursuant to Rule 61(a)(8). (Last location was INACTIVE FILE on
6/1/2021)(May be acted upon Jan 2022)
Location: 6/4/2021-S. 2 YEAR
Desk Policy Fiscal 2 year Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would require the State Water Resources Control Board, by July 1, 2022, to establish
financial capability assessment guidelines for municipal separate storm sewer system permittees that
are adequate and consistent when considering the costs to local jurisdictions. The bill would require
the state board and the regional boards to continue using available regulatory tools and other
approaches to foster collaboration with permittees to implement permit requirements in light of the
Page 8/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
costs of implementation.
SB 427 (Eggman D) Water theft: enhanced penalties.
Current Text: Amended: 4/12/2021 html pdf
Introduced: 2/12/2021
Last Amend: 4/12/2021
Status: 5/13/2021-Referred to Com. on L. GOV.
Location: 5/13/2021-A. L. GOV.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would authorize the legislative body of a local agency, as defined, that provides water
service to adopt an ordinance that prohibits water theft, as defined, subject to an administrative fine
or penalty in excess of the limitations above, as specified. The bill would require the local agency to
adopt an ordinance that sets forth the administrative procedures governing the imposition,
enforcement, collection, and administrative review of the administrative fines or penalties for water
theft and to establish a process for granting a hardship waiver to reduce the amount of the fine, as
specified.
SB 480 (Stern D) Metropolitan Water District of Southern California: rules: inappropriate conduct.
Current Text: Amended: 3/15/2021 html pdf
Introduced: 2/17/2021
Last Amend: 3/15/2021
Status: 6/3/2021-Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. In Assembly.
Read first time. Held at Desk.
Location: 6/3/2021-A. DESK
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: The Metropolitan Water District Act provides for the creation of metropolitan water districts
and specifies the powers and purposes of a district. The act requires the Metropolitan Water District of
Southern California to establish and operate an Office of Ethics and adopt rules relating to internal
disclosure, lobbying, conflicts of interest, contracts, campaign contributions, and ethics for application
to its board members, officers, and employees. This bill would require the Metropolitan Water District of
Southern California to adopt rules relating to inappropriate conduct, as defined, by board members,
officers, and employees.
SB 552 (Hertzberg D) Drought planning: small water suppliers: nontransient noncommunity water
systems.
Current Text: Amended: 5/20/2021 html pdf
Introduced: 2/18/2021
Last Amend: 5/20/2021
Status: 6/2/2021-In Assembly. Read first time. Held at Desk.
Location: 6/1/2021-A. DESK
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would require small water suppliers, as defined, and nontransient noncommunity water
systems that are schools, no later than December 31, 2022, to develop and maintain an abridged
Water Shortage Contingency Plan that includes specified drought-planning elements. The bill would
require these water systems to report specified water supply condition information to the state board
through the state board’s Electronic Annual Reporting System, and to include water system risk and
water shortage information in the water systems’ consumer confidence reports, as provided. The bill
would require the State Water Resources Control Board, in partnership with the department and no
later than December 31, 2022, to conduct an assessment of drought and emergency water shortage
resiliency measures for small water systems and nontransient noncommunity water systems that are
schools, among other tasks.
SB 559 (Hurtado D) Department of Water Resources: water conveyance systems: Canal Conveyance
Capacity Restoration Fund.
Current Text: Amended: 5/20/2021 html pdf
Introduced: 2/18/2021
Last Amend: 5/20/2021
Status: 6/3/2021-Referred to Com. on W.,P., & W.
Location: 6/3/2021-A. W.,P. & W.
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would establish the Canal Conveyance Capacity Restoration Fund in the State Treasury to
Page 9/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021
be administered by the Department of Water Resources. The bill would require all moneys deposited in
the fund to be expended, upon appropriation by the Legislature, in support of subsidence repair costs,
including environmental planning, permitting, design, and construction and necessary road and bridge
upgrades required to accommodate capacity improvements. The bill would require the department to
expend from the fund, upon appropriation by the Legislature, specified monetary amounts to restore
the capacity of 4 specified water conveyance systems, as prescribed, with 2 of those 4 expenditures
being in the form of a grant to the Friant Water Authority and to the San Luis and Delta-Mendota
Water Authority. The bill would make operation of these provisions contingent on specified conditions
being met. The bill would make these provisions inoperative on July 1, 2030, and would repeal the
provisions as of January 1, 2031.
SB 683 (Ochoa Bogh R) Water quality: regional municipal separate storm sewer system permits.
Current Text: Amended: 3/9/2021 html pdf
Introduced: 2/19/2021
Last Amend: 3/9/2021
Status: 4/30/2021-Failed Deadline pursuant to Rule 61(a)(2). (Last location was E.Q. on 3/18/2021)
(May be acted upon Jan 2022)
Location: 4/30/2021-S. 2 YEAR
Desk 2 year Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Would require, to the extent permitted by federal law, a regional board that issues a
municipal separate storm sewer system permit pursuant to the federal national pollutant discharge
elimination system (NPDES) permit program to a region rather than to an individual discharger to
include specified elements in the permit and to meet and collaborate with the permittees before or
during the permit writing process.
SB 788 (Bradford D) Workers’ compensation: risk factors.
Current Text: Introduced: 2/19/2021 html pdf
Introduced: 2/19/2021
Status: 6/2/2021-Read third time. Passed. (Ayes 37. Noes 0.) Ordered to the Assembly. In Assembly.
Read first time. Held at Desk.
Location: 6/2/2021-A. DESK
Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf.
Conc.Enrolled Vetoed Chaptered1st House 2nd House
Summary: Current law establishes a workers’ compensation system, administered by the
administrative director of the Division of Workers’ Compensation, to compensate an employee for
injuries sustained in the course of employment. Current law requires a physician who prepares a
report addressing the issue of permanent disability due to an industrial injury to address the cause of
the permanent disability in the report, including what approximate percentage of the permanent
disability was caused by other factors before and after the industrial injury, if the physician is able to
make an apportionment determination. This bill would prohibit consideration of race, religious creed,
color, national origin, age, gender, marital status, sex, sexual identity, sexual orientation, or genetic
characteristics to determine the approximate percentage of the permanent disability caused by other
factors.
Total Measures: 36
Total Tracking Forms: 36
Page 10/10
ITEM NO. 9.1.
MATERIALS SUBMITTED BY: Alison Martin
MEETING DATE: June 8, 2021