HomeMy WebLinkAbout2022-05-24 - Board of Directors Meeting Agenda PacketYorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
Tuesday, May 24, 2022, 6:00 PM
1717 E Miraloma Ave, Placentia CA 92870
1. PARTICIPATION INSTRUCTIONS
Due to the continuing state of emergency declared by the California Governor related to preventing the
spread of Coronavirus (COVID-19), and pursuant to California Government Code Section 54953(e), this
meeting will be facilitated in a hybrid format. As such, Directors and members of the public may choose
to participate in person or by video/teleconference. Information for accessing this meeting by telephone
or internet-based service is provided below. For questions regarding participation, please call the Board
Secretary at (714) 701-3020.
Computer/Mobile Device: https://us06web.zoom.us/m/89207138903
Telephone: (669) 900-6833 or (346) 248-7799
Meeting ID: 892 0713 8903
Live -stream: https://www.ylwd.com/youtube
2. CALL TO ORDER
3. PLEDGE OF ALLEGIANCE
4. ROLL CALL
J. Wayne Miller, PhD, President
Brooke Jones, Vice President
Trudi DesRoches, Director
Phil Hawkins, Director
Tom Lindsey, Director
5. 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)
6. 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.
6.1. Reauthorizing Continuation of Virtual/Teleconference Board Meetings
Recommendation: That the Board of Directors reauthorize the continuation of
virtual/teleconference meetings pursuant to AB 361 for an additional 30 days
based on the findings that (1) the Board has reconsidered the circumstances of
the state of emergency for COVID-19, and that (2) state and local officials
continue to impose or recommend measures to promote social distancing.
Page 1 of 61
7. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board (or Committee) discussions
are needed prior to formal action.
7.1. Adjusting Water and Sewer Rate Schedules and Charges
Recommendation: That the Board of Directors (1) adopt Resolution No. 2022 -
XX adjusting water rate schedules and charges effective July 1, 2022 and
rescinding Resolution No. 2021-14; and (2) adopt Resolution No. 2022 -XX
adjusting sewer rate schedules and charges effective July 1, 2022 and
rescinding Resolution No. 2021-15.
7.2. Adopting Water and Sewer Development and Customer Service Fees
Recommendation: That the Board of Directors (1) adopt Resolution No. 2022 -
XX adopting Water Development and Customer Service Fees effective July 1,
2022 and rescinding Resolution No. 2021-22; and (2) adopt Resolution No.
2022 -XX adopting Sewer Development and Customer Service Fees effective
July 1, 2022 and rescinding Resolution No. 2021-23.
7.3. Adopting Fats, Oils, and Grease Control Program Fees
Recommendation: That the Board of Directors adopt Resolution No. 2022 -XX
adopting Fats, Oils, and Grease Control Program Fees and rescinding
Resolution No. 18-21.
7.4. Adopting the Budgeted Positions for Fiscal Year 2022-23
Recommendation: That the Board of Directors adopt Resolution No. 2022 -XX
ratifying the budgeted positions for Fiscal Year 2022-23 and rescinding
Resolution Nos. 2021-12, 2021-35, 2021-38, and 2022-03.
7.5. Adopting the Operating Budget for Fiscal Year 2022-23 (Financial Summaries)
Recommendation: That the Board of Directors adopt Resolution No. 2022 -XX
adopting the Operating Budget for Fiscal Year 2022-23 (Financial Summaries)
and rescinding Resolution No. 2021-29.
7.6. Selection of Investment Banking/Underwriting Services for 2022 Debt Issuance
Recommendation: That the Board of Directors authorize the Interim General
Manager to engage Barclays for investment banking/underwriting services for
the 2022 debt issuance for an amount not to exceed $70, 000.
8. CLOSED SESSION
The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The
public is excused during these discussions.
8.1. Public Employee Performance Evaluation
Pursuant to Section 54957 of the California Government Code
Title: Assistant General Manager / Interim General Manager
9. ADJOURNMENT
9.1. The next regular Board meeting is scheduled Tuesday, June 14, 2022. 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
Page 2 of 61
Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of
Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for
public inspection in the lobby of the District's Administrative building located at 1717 E Miraloma Ave, Placentia
CA 92870 during regular business hours. When practical, these materials will also be posted on the District's
website at https://ylwd.com/. (GC 54957.5)
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))
Page 3 of 61
ITEM NO. 6.1.
Yorba Linda
Water District
/_[r]=1►1I7_\V=1161AI
MEETING DATE: May 24, 2022
TO: Board of Directors
FROM: Doug Davert, Assistant General Manager / Interim General
Manager
STAFF CONTACTS: Annie Alexander, Board Secretary
SUBJECT: Reauthorizing Continuation of Virtual/Teleconference Board
Meetings
RECOMMENDATION:
That the Board of Directors reauthorize the continuation of virtual/teleconference meetings
pursuant to AB 361 for an additional 30 days based on the findings that (1) the Board has
reconsidered the circumstances of the state of emergency for COVID-19, and (2) state and
local officials continue to impose or recommend measures to promote social distancing.
BACKGROUND:
At the October 21, 2021 Board meeting, pursuant to AB 361, the Board of Directors adopted
Resolution No. 2021-40 and authorized the Board to continue to have remote meetings based
on the continued state of emergency for COVID-19 and the finding that state and local officials
have imposed or recommended measures to promote social distancing. At the past several
meetings, including the May 10, 2022 Board meeting, the Board voted to continue such remote
meetings for additional 30 -day periods. As previously indicated, if the Board wishes to continue
to hold remote meetings pursuant to AB 361, and assuming a state of emergency is still in
place, it must make similar findings at least every 30 days.
At the time this report was prepared, there is a continued state of emergency for COVID-19,
and state and local officials continue to recommend measures to promote social distancing.
This item is on the agenda for the Board to consider whether to continue remote meetings
pursuant to AB 361 for an additional 30 days and to make the appropriate findings.
Page 4 of 61
ITEM NO. 7.1.
Yorba Linda
Water District
/_[r]=1►1I7_'sV=1161AI
MEETING DATE: May 24, 2022
TO: Board of Directors
FROM: Doug Davert, Assistant General Manager / Interim General
Manager
STAFF CONTACTS: Delia Lugo, Finance Manager
Paige Appel, Budget Analyst
SUBJECT: Adjusting Water and Sewer Rate Schedules and Charges
RECOMMENDATION:
That the Board of Directors (1) adopt Resolution No. 2022 -XX adjusting water rate schedules
and charges effective July 1, 2022 and rescinding Resolution No. 2021-14; and (2) adopt
Resolution No. 2022 -XX adjusting sewer rate schedules and charges effective July 1, 2022
and rescinding Resolution No. 2021-15.
SUMMARY:
In preparing and reviewing the projected year-end results for Fiscal Year 2021-22 and the
proposed Operating Budget for Fiscal Year 2022-23, staff was charged with analyzing the
District's rates, and recommending the necessary rate adjustments that meet the District's
cost of service and the goals and objectives as set by the Board of Directors.
Upon review of multiple scenarios presented to the Board, staff has determined that a 9%
adjustment to water and sewer rates is necessary to meet the District's cost of service and the
goals and objectives as set by the Board. The proposed water and sewer rates for FY22-23,
as presented in the tables of the attached resolutions, do not exceed those presented in the
2021 Rate Study and are in accordance with Proposition 218.
The Board and staff are responsible for providing clean, safe, and reliable drinking water to all
residents and businesses within the District's service area, and for safely and reliably
collecting and transporting wastewater through its extensive sewer system to maintain public
health. In order to provide adequate funding of reserves for the maintenance and replacement
of this 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 recommends the Board adopt the attached resolutions adjusting the proposed water and
sewer rates with an effective date of July 1, 2022.
7_[I]:(r]:tell] 0193
Page 5 of 61
On February 22, 2022, a Board of Director's Special Meeting was held for the Board to
present staff with their priorities, goals, and objectives to be met during the development of a
proposed Operating Budget for Fiscal Year 2022-23. Discussion points presented by staff
included, but were not limited to, the assumptions used within the 2021 Rate Study and the
resulting proposed rate schedule, an evaluation of inflationary pressures affecting operating
costs, the delay in receiving ordered goods and materials, and plans for a new debt issuance
in fall 2022.
Staff was directed to utilize diligence when projecting FY22-23 revenues and expenses, as
well as an updated 5 -Year Capital Improvement Plan (CIP), to ensure the District's cost of
service is being met and to focus on the District's core mission of providing reliable water and
wastewater services to protect public health and the environment, all the while providing
premier customer service.
There were three (3) subsequent budget workshops held on March 22, April 26, and May 12,
2022 where staff, in response to the directions provided by the Board from the February 22,
2022 meeting, presented their projections for FY22-23 revenue and expenses and an updated
5 -year CIP. Various scenarios of revenues and expenses were presented at the request of
the Board and much discussion was had on the projected increase in annual operating
expenses due to the PFAS Water Treatment Plant coming online.
ATTACHMENTS:
1. Resolution No. 2022 -XX - Adjusting Water Rates and Charges
2. Resolution No. 2022 -XX - Adjusting Sewer Rates and Charges
Page 6 of 61
RESOLUTION NO. 2022 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADJUSTING WATER RATES AND CHARGES
EFFECTIVE JULY 1, 2022 AND
RESCINDING RESOLUTION NO. 2021-14
WHEREAS, pursuant to California Water Code Section 31007, the Board of Directors of
the Yorba Linda Water District ("YLWD") is required to set water 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 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 pass
through increases in wholesale charges for water.
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 proposed 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 a new five-year schedule of water
(and 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.
WHEREAS, at the public hearing, a majority of parcel owners did not protest against the
proposed new schedules of water rates and charges in the Prop 218 Notice,
and the Board of Directors adopted the proposed new schedule.
WHEREAS, the District Board of Directors previously adopted Resolution No. 2021-14
which established water rates and charges effective July 1, 2021.
Resolution No. 2022 -XX of Adjusting Water Rates and Charges Effective July 1, 2022
Page 7 of 61
WHEREAS, Resolution No. 2021-14 stated the Board of Directors' findings,
determinations, and resolutions to adopt a new proposed schedule of water
rates and charges, which are not repeated in this Resolution to avoid any
confusion regarding the findings, determinations, and resolutions to adjust
the water rates and charges in this Resolution in accordance with the
previously adopted schedule.
WHEREAS, following substantial review and analysis, which included multiple Board
workshops, District staff prepared a cost of service analysis for Fiscal Year
2022-23.
WHEREAS, in accordance with the cost of service analysis and Water Code Section
31007, the Board of Directors desires to adjust certain water rates and
charges effective July 1, 2022 within the confines of the District's water rate
schedule published in its 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. 2021-14 is hereby rescinded effective July 1, 2022.
Section 3. The District water rates and charges for water service are hereby adjusted
as follows and will take effect on July 1, 2022:
For All Potable Water Service:
All Water Usage shall be charged at: $ 2.90 / 100 Cubic Feet (ccf)
(Includes a $0.02 Pass -Through Adjustment)
Monthly Service Charge for:
5/8" and 3/4" Meters
$
30.14
1" Meters
$
47.02
1 1/2" Meters
$
89.17
2" Meters
$
139.45
3" Meters
$
299.96
4" Meters
$
536.03
6" Meters
$
1,353.89
Resolution No. 2022 -XX of Adjusting Water Rates and Charges Effective July 1, 2022 2
Page 8 of 61
Monthly Private Fire Protection Charge for:
4" Meters $ 8.56
6" Meters $ 22.43
8" Meters $ 46.37
10" Meters $ 82.37
Annual Capital (Finance) Charge for:
5/8" and 3/4" Meters
$
74.28
1" Meters
$
123.84
1 1/2" Meters
$
247.44
2" Meters
$
395.64
3" Meters
$
865.20
4" Meters
$
1,577.00
6" Meters
$
3,954.24
Section 4. 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 be declared by the State of California or other
agency of authority. The schedule effective July 1, 2022 is hereby set forth
as follows:
Drought
Water Use
Additional
Equivalent
Shortage Level
Stage
Reduction
Charge
in WSCP*
No Drought
0%
$0.00/ccf
0 0% -Normal
Stage 1
10%
$0.14/ccf
1 (Up to 10%)
Stage 2
20%
$0.29/ccf
2 (Up to 20%)
Stage 3
30%
$0.60/ccf
3 (Up to 30%)
4 (Up to 40%)
Stage 4
50%
$1.11/ccf
5 (Up to 50%)
6 (>50%)
*2020 Water Shortage Contingency Plan
Resolution No. 2022 -XX of Adjusting Water Rates and Charges Effective July 1, 2022 3
Page 9 of 61
PASSED AND ADOPTED this 24th day of May 2022, by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, PhD, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 2022 -XX of Adjusting Water Rates and Charges Effective July 1, 2022
Page 10 of 61
RESOLUTION NO. 2022 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADJUSTING SEWER RATES AND CHARGES
EFFECTIVE JULY 1, 2022 AND
RESCINDING RESOLUTION NO. 2021-15
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, 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 schedules of proposed sewer rate
increases described in the Rate Study.
WHEREAS, pursuant to, and in compliance with, Proposition 218 (California Constitution
art. XI I I 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.
WHEREAS, at the public hearing, a majority of parcel owners did not protest against the
proposed new schedule of sewer rates and charges in the Prop 218 Notice
and the Board of Directors adopted the proposed new schedule.
WHEREAS, the District Board of Directors previously adopted Resolution No. 2021-15
which established sewer rates and charges effective July 1, 2021.
Resolution No. 2022 -XX Adjusting Sewer Rates and Charges Effective July 1, 2022
Page 11 of 61
WHEREAS, Resolution No. 2021-15 stated the Board of Directors' findings,
determinations, and resolutions to adopt a new proposed schedule of sewer
rates and charges, which are not repeated in this Resolution to avoid any
confusion regarding the findings, determinations, and resolutions to adjust
the sewer rates and charges in this Resolution in accordance with the
previously adopted schedule.
WHEREAS, following substantial review and analysis, which included multiple Board
workshops, District staff prepared a cost of service analysis for Fiscal Year
2022-23.
WHEREAS, in accordance with the cost of service analysis and Water Code Section
31007, the Board of Directors desires to adjust certain sewer rates and
charges effective July 1, 2022 within the confines of the District's sewer rate
schedule published in its 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. 2021-15 is hereby rescinded effective July 1, 2022.
Section 3. The District sewer rates and customer connection charges for sewer service
are hereby adjusted as follows and will take effect on July 1, 2022-
A. Residential:
1. Residential - individually metered $10.41 per month
2. Residential - master metered $10.02 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: $10.41 per month.
b. All water consumption in excess of 700 cubic feet
per month: $0.40 per 100 cubic feet.
Resolution No. 2022 -XX Adjusting Sewer Rates and Charges Effective July 1, 2022 2
Page 12 of 61
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: $10.41 per month
b. All water consumption in excess of 700 cubic feet
per month: $0.40 per 100 cubic feet.
PASSED AND ADOPTED this 24th day of May 2022 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, PhD, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 2022 -XX Adjusting Sewer Rates and Charges Effective July 1, 2022 3
Page 13 of 61
ITEM NO. 7.2.
Yorba Linda
Water District
/_[r]=1►1I7_\V=1161AI
MEETING DATE: May 24, 2022
TO: Board of Directors
FROM: Doug Davert, Assistant General Manager / Interim General
Manager
STAFF CONTACTS: Delia Lugo, Finance Manager
Paige Appel, Budget Analyst
SUBJECT: Adopting Water and Sewer Development and Customer Service
Fees
RECOMMENDATION:
That the Board of Directors (1) adopt Resolution No. 2022 -XX adopting Water Development
and Customer Service Fees effective July 1, 2022 and rescinding Resolution No. 2021-22;
and (2) adopt Resolution No. 2022 -XX adopting Sewer Development and Customer Service
Fees effective July 1, 2022 and rescinding Resolution No. 2021-23.
BACKGROUND:
The current Water Development and Customer Service Fees and Sewer Development and
Customer Service Fees were adopted via Resolution Nos. 2021-22 and 2021-23 respectively
in June 2021. Staff reviewed and updated the methodology for the basis of determining fair
and equitable fees that cover the cost of service to provide the listed water and sewer related
services. Projected staff time, equipment, and material costs utilized to perform the service(s)
required are included in determining each cost of service. Staff costs include the average
hourly rate(s) and benefit costs of the employee(s) providing the service, as well as eligible
indirect cost factors. Attached are resolutions with the updated Water Development and
Customer Service Fees and Sewer Development and Customer Service Fees.
STRATEGIC PLAN INITIATIVES:
G2 3D — Review and adopt an appropriate fee schedule on an annual basis.
ATTACHMENTS:
1. Resolution No. 2022 -XX - Adopting Water Development and Customer Service Fees
2. Resolution No. 2022 -XX - Adopting Sewer Development and Customer Service Fees
Page 14 of 61
RESOLUTION NO. 2022 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING WATER DEVELOPMENT AND CUSTOMER SERVICE FEES
AND RESCINDING RESOLUTION NO. 2021-22
WHEREAS, the Yorba Linda Water District Rules and Regulations for Water Service
include a provision that Water Development and Customer Service Fees
shall be adopted by separate Resolution; and
WHEREAS, the Board of Directors of the Yorba Linda Water District has, from time to
time, adopted Ordinances and Resolutions to change the Water
Development and Customer Service Fees for services provided by the
District; and
WHEREAS, the fees collected pursuant to this Resolution shall be used to fund costs
necessitated by the services provided by the District.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. Fees identified in Section 4 of the Rules and Regulations for Water Service
shall be as follows:
A. New Account Setup Fee
B. Late Payment Fee
C. Notice of Discontinuance
D. Shut -Off Due to Non -Pam
E. Reestablish Service
F. Callout After Hours
G. Tampered Lock — Residential
H. Tampered Lock — Commercial
I. Meter Removal
J. Meter Replacement
(Due to Meter Removal)
K. Return Payment Fee
L. Stop Payment of District Check
Resolution No. 2022 -XX Adopting Water Development and Customer Service Fees
$35 per Occurrence
10% of Outstanding Charges
$20.00 per Occurrence
$40.00 per Occurrence
$40.00 per Occurrence
$210.00 per Occurrence
$80.00 per Occurrence
$120.00 per Occurrence
$110.00 per Occurrence
$110.00 per Occurrence
(Plus additional labor
and materials due to
customer tampering.)
$30.00 per Occurrence
$25.00 per Occurrence
1
Page 15 of 61
M. Water Meter Testing Fee
$120 (Plus cost of independent
laboratory testing if applicable.)
N. Residential Customer Deposit
(Determined by 3rd Party Processing)
Potential of Risk "Green"
$0.00 per Meter
Potential of Risk "Yellow"
$125.00 per Meter
Potential of Risk "Red"
$225.00 per Meter
O. Commercial Customer Deposit
1 1/2 Inch Meter & Below
$500.00 per Meter
2 Inch Meter
$805.00 per Meter
3 Inch Meter
$1,245.00 per Meter
4 Inch and Larger Meter
$2,295.00 per Meter
Section 2. Fees identified in Sections 2, 3, and 7 of the Rules and Regulations for
Water Services shall be as follows:
A. Construction Meters
(Temporary connection at a location approved by District staff.)
Deposit $2,060.00 per Meter
New Account Setup Fee $40.00 per Occurrence
Meter Use Fee $6.20 per Day
Move to a New Location $125.00 per Occurrence
Backflow Certification $85.00 per Occurrence
An approved backflow prevention device to be provided by Customer
at time of meter installation. Calibration fee may apply.
B. New Meter Connection Fee
(Excludes meter box, meter lid, and customer service shut-off valve.)
1 Inch Meter $840.00 per Meter
1 '/2 Inch Meter $1,440.00 per Meter
2 Inch Meter $1,780.00 per Meter
Meter(s) Larger Than 2 Inch Actual Costs
Meter(s) Within Traffic Area Actual Costs
C. Temporary Water Services 2 Times the Current Potable
Water Rate Per 100 Cubic Feet
Resolution No. 2022 -XX Adopting Water Development and Customer Service Fees 2
Page 16 of 61
D. Change of Meter Size
E. Temporary Untreated Water
F. Permanent Untreated Water
Actual Costs
MWDSC Untreated Rate, plus
other MWDOC Fees, plus
$13.00 per acre-foot.
MWDSC Untreated Rate, plus
other MWDOC Fees, Plus
$13.00 per acre-foot.
G. Backflow Device Monitoring Fee $3.55 per Month
H. Water Capacity Fee $6,450.00 per Connection
I. Water Deposit (Plan Check, Inspection, GIS Data Conversion,
Administrative, and Records/Billing Services Costs)
1-5 Connections $10,665.00 Deposit
6-10 Connections $17,070.00 Deposit
11-20 Connections $24,085.00 Deposit
21-30 Connections
31-40 Connections
41-50 Connections
51-99 Connections
100 and Higher Number of Connections
$30,980.00 Deposit
$38,855.00 Deposit
$45,245.00 Deposit
$52,935.00 Deposit
$65,505.00 Deposit
Note: The above "Water Deposit" will be required upon application.
Additional funds may be required upon the Yorba Linda Water District
(YLWD) reaching 85% of the deposit balance. The deposit will be charged
current salary and vehicle rates based on a project number. All unused
deposit funds will be refunded to the current customer on record upon close
out of the project. Please note additional customer service, water service,
and meter fees may be required.
J. Single Service Fee
$1,275.00 per Permit
Section 3. Penalties identified in Section 4.7 of the Rules and Regulations for Water
Services shall be as follows:
A. Meter Tampering Penalties
1 st Violation
$250 Plus Cost of Inspection,
Repair, Calibration, and
Estimated Usage
2nd Violation $1,500 Plus Cost of Inspection,
Repair, Calibration, and
Estimated Usage
Resolution No. 2022 -XX Adopting Water Development and Customer Service Fees
3
Page 17 of 61
V Violation $5,000 Plus Cost of Inspection,
Repair, Calibration, and
Estimated Usage
B. Hvdrant Tamaerina Penalties
1 st Violation
2nd Violation
3rd Violation
C. Obstructina District Facilities
$250 Plus Cost of Inspection,
Repair, and Estimated Usage
$1,500 Plus Cost of Inspection,
Repair, and Estimated Usage
$5,000 Plus Cost of Inspection,
Repair, and Estimated Usage
Actual Costs of Removing Obstruction
(Applicable if 48 hours has
lapsed from proper District
notification of obstruction.)
Section 4. The fees adopted herein shall take effect on July 1, 2022 and
Resolution No. 2021-22 is hereby rescinded effective June 30, 2022.
PASSED AND ADOPTED this 24th day of May 2022 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, PhD, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 2022 -XX Adopting Water Development and Customer Service Fees 4
Page 18 of 61
RESOLUTION NO. 2022 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING SEWER DEVELOPMENT AND CUSTOMER SERVICE FEES
AND RESCINDING RESOLUTION NO. 2021-23
WHEREAS, the Yorba Linda Water District Rules and Regulations for Sewer Service
include a provision that Sewer Development and Customer Service Fees
shall be adopted by separate Resolution; and
WHEREAS, the Board of Directors of the Yorba Linda Water District has, from time to
time, adopted Ordinances and Resolutions to change the Sewer
Development Fees and Customer Service Fees for services provided by
the District; and
WHEREAS, the fees collected pursuant to this Resolution shall be used to fund costs
necessitated by the services provided by the District.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. Fees identified in Section 6 and 8 of the Rules and Regulations for Sewer
Services shall be as follows:
A. Frontage Charge
B. Sewer Capacity Fee
$155.00 per Linear Foot
(But not less than $5,545.00
per Connection.)
$2,620.00 per Connection
C. Sewer Deposit (Plan Check, Inspection, GIS Data Conversion,
Administrative, and Records/Billing Services Costs)
1-5 Connections
6-10 Connections
11-20 Connections
21-30 Connections
31-40 Connections
41-50 Connections
51-99 Connections
100 and Higher Number of Connections
$9,620.00 Deposit
$12,175.00 Deposit
$16,020.00 Deposit
$19,390.00 Deposit
$23,795.00 Deposit
$29,090.00 Deposit
$41,485.00 Deposit
$61,605.00 Deposit
Note: The above "Sewer Deposit" will be required upon application.
Additional funds may be required upon the Yorba Linda Water District
(YLWD) reaching 85% of the deposit balance. The deposit will be charged
current salary and vehicle rates based on a project number. All unused
deposit funds will be refunded to the current customer on record upon
close out of the project. Please note additional customer service and
sewer development fees may be required.
Resolution No. 2022 -XX Adopting Sewer Development and Customer Service Fees
Page 19 of 61
D. Single Service Fee $1,680.00 per Permit
E. Sewer Cleaning — Hot Spots Fee Actual Costs
(Fee assessed to number of
customers serviced.)
Section 2. Penalties identified in Section 11 and 13 of the Rules and Regulations for
Sewer Services shall be as follows:
A. Sewer Tampering Penalties
1 st Violation
2nd Violation
3rd Violation
B. Obstructing District Facilities
$250 Plus Cost of Inspection,
Repair, and Estimated Usage
$1,500 Plus Cost of
Inspection and Repair
$5,000 Plus Cost of
Inspection and Repair
Actual Costs of Removing Obstruction
(Applicable if 48 hours has
lapsed from proper District
notification of obstruction.)
Section 3. The fees adopted herein shall take effect on July 1, 2022 and Resolution
No. 2021-23 is hereby rescinded effective June 30, 2022.
PASSED AND ADOPTED this 24th day of May 2022 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, PhD, President
Yorba Linda Water District
U11aIam9
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 2022 -XX Adopting Sewer Development and Customer Service Fees
4
Page 20 of 61
ITEM NO. 7.3.
Yorba Linda
Water District
/_[r]=1►1I7_\V=1161AI
MEETING DATE: May 24, 2022
TO: Board of Directors
FROM: Doug Davert, Assistant General Manager / Interim General
Manager
STAFF CONTACTS: Delia Lugo, Finance Manager
SUBJECT: Adopting Fats, Oils, and Grease Control Program Fees
RECOMMENDATION:
That the Board of Directors adopt Resolution No. 2022 -XX adopting Fats, Oils, and Grease
Control Program Fees and rescinding Resolution No. 18-21.
BACKGROUND:
In 2004, the District adopted Ordinance No. 04-01, regulating Food Service Establishments
("FSE") fats, oils, and grease (FOG) discharge into the sewer system. The State Water
Resources Control Board Order No. 2006-0003-DWQ (and as amended by Order Nos. WQ
2008 -0002 -EXEC and WQ 2013 -0058 -EXEC) mandates the District to enforce this regulation.
In response, the District required all FSEs within its sewer maintenance jurisdiction to comply
with the FOG Program and apply for an annual FOG Wastewater Discharge Permit. Staff has
reviewed costs associated with maintaining the FOG Program and based on the findings, is
recommending the schedule of fees be updated as presented in the attached resolution to
ensure the District's cost of service is met.
ATTACHMENTS:
Resolution No. 2022 -XX - Adopting Fats Oils Grease Control Program Fees
Page 21 of 61
I N **61ItIj 11610 1►[6)W1Z1Y*a:X:1
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING FATS, OILS, AND GREASE CONTROL PROGRAM FEES
AND RESCINDING RESOLUTION NO. 18-21
WHEREAS, in 2002, the Santa Ana Regional Water Quality Control Board enacted
Rule R8-2002-0014 requiring all sewage agencies to adopt the
requirements of a new Waster Water Discharge Requirement (WDR);
and
WHEREAS, in 2006, the Santa Ana Regional Water Quality Control Board Rule R8-
2002-0014 was rescinded and a new statewide permit was adopted
based on R8- 2002-0014; and
WHEREAS, the WDR and statewide permit require many municipalities, including the
Yorba Linda Water District, to increase the level of maintenance,
operations, and capital improvement repairs to their sewer systems and
to have in place a fats, oils, and grease control program; and
WHEREAS, on July 22, 2004, the Board of Directors adopted Ordinance No. 04-01,
creating a Fats, Oils, and Grease Control Program for Food Service
Establishments (FSE) in the City of Yorba Linda and portions of the
cities of Anaheim, Brea, and Placentia requiring a permit for sewer
discharges, which could contain fats, oils, and grease, and imposing
requirements for monitoring of and elimination of fats, oils, grease from
sewer discharges for such establishments; and
WHEREAS, Ordinance No. 04-01, authorizes the adoption by resolution of a Fats,
Oils, and Grease Wastewater Discharge Permit Fee and Grease
Disposal Mitigation Fee to cover the costs of increased maintenance
and administration of the sewer system as a result of the Food Service
Establishments' inability to remove Fats, Oils, and Greases from its
wastewater discharged, and to require Food Service Establishments to
protect the District's sanitary sewer system; and
WHEREAS, the Board of Directors of the Yorba Linda Water District has, from time
to time, adopted Resolutions to change the Fats, Oils, and Grease
Control Program Fees for services provided by the District.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba
Linda Water District as follows:
Section 1. The fees adopted for Yorba Linda Water District Fats, Oils, and Grease
Control Program shall be as follows:
Resolution No. 2022 -XX Adopting FOG Control Program Fees
Page 22 of 61
A. Initial Permit and Application Fee
B. Annual Renewal
C. Non -Compliance Fee
D. Mitigation Fee
$160.00 per FSE
$160.00 per Year/FSE
$355.00 per Occurrence
Actual Costs*
*Actual costs will be invoiced based on District's current salary rates,
benefits, materials, and equipment rates in effect at that time.
Section 2. The fees adopted herein shall take effect on July 1, 2022 and Resolution
No. 18-21 is hereby rescinded effective June 30, 2022.
PASSED AND ADOPTED this 24th day of May 2022 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, PhD, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 2022 -XX Adopting FOG Control Program Fees
t,
Page 23 of 61
ITEM NO. 7.4.
Yorba Linda
Water District
/_[r]=1►1I7_'sV=1161AI
MEETING DATE: May 24, 2022
TO: Board of Directors
FROM: Doug Davert, Assistant General Manager / Interim General
Manager
STAFF CONTACTS: Georgina Knight, Human Resources and Risk Manager
SUBJECT: Adopting the Budgeted Positions for Fiscal Year 2022-23
RECOMMENDATION:
That the Board of Directors adopt Resolution No. 2022 -XX ratifying the budgeted positions for
Fiscal Year 2022-23 and rescinding Resolution Nos. 2021-12, 2021-35, 2021-38, and 2022-
03.
T_[d:(r]:191110103
The Board of Directors will consider adopting a budget for Fiscal Year 2022-23 that will fund
eighty-one (81) regular, full-time positions. The Board will then consider ratifying the budgeted
positions for Fiscal Year 2022-23 to comply with both California Code of Regulations (CCR)
Section 570.5 and the Public Employees' Retirement Law (PERL).
PRIOR RELEVANT BOARD ACTION:
The Board of Directors routinely ratifies the budgeted positions each fiscal year and as
amended.
STRATEGIC PLAN INITIATIVES:
G5 1A - Retain a highly skilled and capable workforce.
I_'Iir_[d:ILy, 14011& 1
1. Resolution No. 2022 -XX - Budgeted Positions for FY22-23
2. Resolution No. 2022 -XX - Exhibit A
Page 24 of 61
RESOLUTION NO. 2022 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
RATIFYING THE BUDGETED POSITIONS FOR FISCAL YEAR 2022-23
AND RESCINDING RESOLUTION NOS. 2021-12, 2021-35, 2021-38, AND 2022-03
WHEREAS, the Board of Directors adopts a budget on an annual basis; and
WHEREAS, the Board of Directors is required to ratify the budgeted positions for each
fiscal year in compliance with California Code of Regulations (CCR) Section
570.5 and the Public Employees' Retirement Law (PERL); and
WHEREAS, it is the desire of the Board of Directors to ratify the Budgeted Positions for
Fiscal Year 2022-23 and to rescind Resolution Nos. 2021-12, 2021-35,
2021-38 and 2022-03 effective July 1, 2022.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. Effective July 1, 2022, the number of Budgeted Positions as set forth in
Exhibit A and attached hereto is hereby ratified for Fiscal Year 2022-23.
Section 2. Reaffirm that the General Manager is hereby authorized to employ up to the
number of employees budgeted and funded in each fiscal year without
further approval of the Board of Directors.
Section 3. Reaffirm that the General Manager is hereby authorized while this
Resolution is active to fill a budgeted position that is vacated with a new
employee at a lower or equal classification and/or with a part-time employee
or contract staff. The General Manager is further authorized to fix and alter
the compensation of employees subject to budget limitations.
Resolution No. 2022 -XX Ratifying the Budgeted Positions for Fiscal Year 2022-23 1
Page 25 of 61
PASSED AND ADOPTED this 24th day of June 2022 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, PhD, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 2022 -XX Ratifying the Budgeted Positions for Fiscal Year 2022-23
Page 26 of 61
Exhibit A
Resolution No. 2022 -XX
Budgeted Positions for FY22-23
Effective July 1, 2022
Salary
position Classification
as of^
Range
2/8/2022
16
Meter Reader 1
2
17
Customer Service Rep II
4
Maintenance Worker 1
5
Public Affairs Representative
0
19
Customer Service Rep III
2
Records Management Specialist
1
20
Assistant Engineer 1
1
Field Customer Services Rep/Meters II
1
Maintenance Worker II
8
21
Accounting Assistant II
2
Mechanic II
1
Operations Assistant
1
Operator I (Operator In Training)
2
22
Information Systems Tech 1
1
Water Quality Technician II
1
23
Facilities Maintenance Worker
1
Human Resources Technician
0
Maintenance Worker III
6
Mechanic III
1
Electrical/SCADA Technician
1
Sr. Field Customer Service Rep/Meters
1
24
Assistant Engineer II
0
Construction Inspector
1
Plant Operator II
3
25
Accountant
1
26
Assistant Engineer III
2
GIS Analyst
1
Sr. Construction Inspector
1
Sr. Mechanic
1
Sr. Maintenance Worker
4
27
Budget Analyst
1
Human Resources Analyst
2
Sr. Plant Operator
1
28
Associate Engineer
0
Executive Assistant
1
Safety and Training Analyst
1
29
Chief Water System Operator
0
Public Affairs Manager
1
30
Chief Water System Operator
1
Customer Service Billing Administrator
1
Maintenance Superintendent
0
Operations Superintendent
0
Records Management Administrator
1
Sr. Accountant
1
Page 1 of 2
Change
as of
7/11/2022
2
4
5
0
2
1
1
1
8
2
1
1
2
1
1
1
0
6
1
1
1
0
1
3
1
2
1
1
1
4
1
2
1
0
1
1
0
1
1
1
0
0
1
1
Page 27 of 61
Exhibit A
Resolution No. 2022 -XX
Budgeted Positions for FY22-23
Effective July 1, 2022
31
Production Superintendent
0
0
Sr. Engineer
2
2
32
Maintenance Superintendent
1
1
Operations Superintendent
1
1
Sr. Executive Assistant/Board Secretary
1
1
33
Production Superintendent
1
1
35
Sr. IS Administrator
1
1
Principal Engineer
1
1
39
Engineering Manager
1
1
Finance Manager
1
1
Human Resources and Risk Manager
1
1
Operations Manager
1
1
42
Assistant General Manager
1
1
Salary Set
General Manager
1
1
by Board
Total 81 81
Ratified: 5/24/2022
Page 2 of 2
Page 28 of 61
ITEM NO. 7.5.
Yorba Linda
Water District
/_[r]=1►1I7_\V=1161AI
MEETING DATE: May 24, 2022
TO: Board of Directors
FROM: Doug Davert, Assistant General Manager / Interim General
Manager
STAFF CONTACTS: Delia Lugo, Finance Manager
Paige Appel, Budget Analyst
SUBJECT: Adopting the Operating Budget for Fiscal Year 2022-23 (Financial
Summaries)
RECOMMENDATION:
That the Board of Directors adopt Resolution No. 2022 -XX adopting the Operating Budget for
Fiscal Year 2022-23 (Financial Summaries) and rescinding Resolution No. 2021-29.
BACKGROUND:
Prior to the beginning of the new fiscal year on July 1, 2022, the Board must adopt a new
Operating Budget which includes the budget for both ongoing operations and capital
investments in equipment and infrastructure. Attached for the Board's review and
consideration are the Financial Summaries used to develop the District's proposed Operating
Budget for Fiscal Year 2022-23. The annual Operating Budget presents the framework and
financial plan for responsibly carrying out the programs and capital projects that administer,
operate, maintain and protect the water and wastewater systems, as well as acquire and/or
replace assets required to provide safe and reliable water and sewer services in accordance
with the District's mission and vision statements.
Staff has adhered to its established budget process in developing the proposed Operating
Budget for Fiscal Year 2022-23. In conjunction with the development of the 2021 Rate Study,
staff worked with the rate -setting consultants in developing long-term financial plans (5 -year
plans) for both the water and sewer funds. Factors included in the development of these
financial plans included, among other factors, the following: (1) the District's projected year-
end results for Fiscal Year 2021-22; (2) future operating plans required to meet demands from
the water system; (3) proposed (and now approved) increases in both water and sewer rates;
(4) forecasted cost increases for operating and capital expenditures; (5) a revised and
updated 5 -year capital improvement program; and (6) estimated annual inflationary
adjustments. The results of the proposed financial plans were presented to the Board of
Directors at three previous Board meetings. These presentations included information on the
revenue required to cover the annual cost of service; required debt coverage ratios to meet
Page 29 of 61
covenants required by lenders; and days in cash calculations that affect the District's credit
rating.
In developing the Operating Budget for Fiscal Year 2022-23, staff utilized an updated analysis
and financial plan prepared within the rate study, incorporated the rates and charges as
adopted by the Board via Resolution Nos. 2021-14 and 2021-15 at the June 7, 2021 Board
meeting, adjusted expense projections to account for updated vendor price/rate increases,
and modified the operating plan by updating projected demand on the water system. The
financial summaries in support of the proposed Operating Budget will allow the District to
operate, maintain, and fund projects and activities that meet the goals and initiatives of the
District's Strategic Plan.
In general, the Fiscal Year 2022-23 Operating Budget identifies $48,203,796 in total revenues,
$42,631,063 in total expenses, $9,500,000 in depreciation, and $12,534,573 in capital related
expenses. The capital portion of the budget is funded through debt instruments, current year
revenues and/or reserves. The proposed Operating Budget does not fund depreciation in the
2022-23 fiscal year.
ATTACHMENTS:
1. Resolution No. 2022 -XX - Adopting FY22-23 Budget
2. YLWD FY2022-23 Budget Financial Summaries
Page 30 of 61
RESOLUTION NO. 2022 -XX
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2022-23
AND RESCINDING RESOLUTION NO. 2021-29
WHEREAS, the Yorba Linda Water District has prepared a one-year budget for Fiscal
Year 2022-23; and
WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Year
2022-23, and rescind Resolution No. 2021-29.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. That the Budget for Fiscal Year 2022-23, set forth in Exhibit "A" and
attached hereto, is hereby approved and adopted.
Section 2. That the Budget for Fiscal Year 2022-23 is in full force and effect beginning
July 1, 2022, and continuing until this Resolution is rescinded by the Board
of Directors.
Section 3. That Resolution No. 2021-29 is hereby rescinded effective July 1, 2022.
PASSED AND ADOPTED this 24th day of May 2022 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
J. Wayne Miller, PhD, President
Yorba Linda Water District
ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Andrew B. Gagen, Esq.
Kidman Gagen Law LLP
Resolution No. 2022 -XX Adopting the Operating Budget for Fiscal Year 2022-23
Page 31 of 61
Cf O
o0 oao
-1 0°:
IN %_, nt11
Ow
eYorba Linda
Water District
FY2022-23 BUDGET
FINANCIAL SUMMARIES
Page 32 of 61
Yorba Linda Water District
Water & Sewer Enterprise
Operating Budget for FY 2022-23
Expenses (Operating):
FY21
Actual
FY22
Budget
FY22
Projections
FY23
Budget
Revenue (Operating):
Water Revenue (Residential)
17,175,789
15,834,595
14,615,634
16,933,387
Water Revenue (Commercial & Fire Det.)
1,720,003
1,555,486
1,574,178
1,737,255
Water Revenue (Landscape/Irrigation)
4,351,773
3,782,756
3,723,558
4,046,832
Service Charges
11,551,365
13,412,193
13,352,421
14,720,797
PFAS Impact Fee
740,215
894,116
889,401
0
Sewer Charge Revenue
2,440,237
2,844,118
2,844,129
3,115,771
Sewer Parcel Assessments
302,763
331,878
318,381
363,158
Other Operating Revenue
968,455
812,526
1,108,626
1,287,829
Total Operating Revenue
39,250,600
39,467,668
38,426,328
42,205,029
Revenue (Non -Operating):
715,712
671,740
556,996
620,039
Interest
246,942
308,000
96,411
106,925
Property Tax
2,072,582
2,025,000
2,138,640
2,095,000
Property Tax - CFC Charges
0
2,985,028
2,847,615
3,103,900
Other Non -Operating Revenue
1,249,200
601,446
702,124
692,942
Total Non -Operating Revenue
3,568,724
5,919,474
5,784,790
5,998,767
Total Revenue
42,819,324
45,387,142
44,211,118
48,203,796
Expenses (Operating):
Variable Costs
Water -Related Costs
15,794,134
18,147,954
17,913,840
13,656,768
Fixed Costs
1,302,743
1,426,078
1,665,799
1,839,855
Power -Related Costs
1,541,594
1,755,798
1,187,160
2,189,451
Variable Water Costs Related Expenses Total
18,638,471
21,329,831
20,766,799
17,686,074
Salary Related Expenses
10,947,895
12,455,996
12,307,760
13,636,809
Reduction for Capital Project Labor
0
(405,000)
(405,000)
(405,000)
Salary Related Expenses Total
10,947,895
12,050,996
11,902,760
13,231,809
Supplies & Services:
Communications
164,667
164,002
140,985
193,000
Contractual Services
715,712
671,740
556,996
620,039
Data Processing
311,867
350,000
322,529
416,614
Dues & Memberships
87,809
96,799
103,366
97,522
Fees & Permits
362,049
387,840
441,182
467,990
Board Election
0
0
0
137,000
Insurance
274,975
310,000
284,869
434,590
Materials
719,502
800,150
770,317
2,377,300
District Activities, Emp Recognition
24,032
52,972
34,995
45,500
Maintenance
800,875
973,400
1,576,275
1,527,900
Non -Capital Equipment
197,846
191,950
168,079
211,300
Office Expense
39,758
44,495
41,817
42,300
Professional Services
1,025,746
1,670,140
1,385,819
1,728,760
Training
35,858
78,025
45,362
83,150
Travel & Conferences
10,247
95,595
43,529
102,780
Uncollectible Accounts
15,906
9,800
11,337
10,000
Utilities
202,963
199,000
171,510
224,000
Vehicle Expenses
469,611
410,700
408,341
538,550
Supplies & Services Sub -Total
5,459,423
6,506,608
6,507,308
9,258,295
Total Operating Expenses
35,045,789
39,887,434
39,176,867
40,176,178
Expenses (Non -Operating):
Interest Expense
1,293,830
1,286,985
1,248,225
2,436,750
Other Expense
859,403
13,365
20,703
18,135
Total Non -Operating Expenses
2,153,233
1,300,350
1,268,928
2,454,885
Total Expenses
37,199,022
41,187,784
40,445,795
42,631,063
Net Income Before Capital Contributions
5,620,302
4,199,359
3,765,323
5,572,733
Capital Contributions
2,051,988
0
8,966
0
Net Income Before Depreciation
7,672,290
4,199,359
3,774,289
5,572,733
Depreciation
7,858,355
8,115,685
8,769,648
9,500,000
Income (Loss)
(186,065)
(3,916,326)
(4,995,359)
(3,927,267)
Page 33 of 61
Yorba Linda Water District
Water Enterprise
Operating Budget for FY 2022-23
FY21 FY22 FY22 FY23
Service Charges
PFAS Impact Fee
Other Operating Revenue
Total Operating Revenue
Revenue (Non -Operating):
Interest
Property Taxes
Property Taxes - CFC Charges
Other Non -Operating Revenue
Total Non -Operating Revenue
Total Revenue
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
Water -Related Costs
Fixed Costs
Power -Related Costs
Variable Water Costs Related Expenses Total
Salary Related Expenses
Reduction for Capital Project Labor
Salary Related Expenses Total
Supplies & Services
Communications
Contractual Services
Data Processing
Dues & Memberships
Fees & Permits
Board Election
Insurance
Materials
District Activities, Emp Recognitior
Maintenance
Non -Capital Equipment
Office Expense
Professional Services
Training
Travel & Conferences
Uncollectible Accounts
Utilities
Vehicle Expenses
Supplies & Services Sub -Total
Total Operating Expenses
Expenses (Non -Operating)
Interest on Long Term Debt
Other Expense
Total Non -Operating Expenses
Total Expenses
11,551,365
Actual
Budget
Projections
Budget
Revenue (Operating):
889,401
0
835,174
771,723
Water Revenue (Residential)
17,175,789
15,834,595
14,615,634
16,933,387
Water Revenue (Commercial & Fire Det.)
1,720,003
1,555,486
1,574,178
1,737,255
Water Revenue (Landscape/Irrigation)
4,351,773
3,782,756
3,723,558
4,046,832
Service Charges
PFAS Impact Fee
Other Operating Revenue
Total Operating Revenue
Revenue (Non -Operating):
Interest
Property Taxes
Property Taxes - CFC Charges
Other Non -Operating Revenue
Total Non -Operating Revenue
Total Revenue
Expenses (Operating):
Variable Water Costs (G.W., Import & Power)
Water -Related Costs
Fixed Costs
Power -Related Costs
Variable Water Costs Related Expenses Total
Salary Related Expenses
Reduction for Capital Project Labor
Salary Related Expenses Total
Supplies & Services
Communications
Contractual Services
Data Processing
Dues & Memberships
Fees & Permits
Board Election
Insurance
Materials
District Activities, Emp Recognitior
Maintenance
Non -Capital Equipment
Office Expense
Professional Services
Training
Travel & Conferences
Uncollectible Accounts
Utilities
Vehicle Expenses
Supplies & Services Sub -Total
Total Operating Expenses
Expenses (Non -Operating)
Interest on Long Term Debt
Other Expense
Total Non -Operating Expenses
Total Expenses
11,551,365
13,412,193
13,352,421
14,720,797
740,215
894,116
889,401
0
835,174
771,723
965,317
1,171,574
36,374,319
36,250,869
35,120,509
38,609,845
192,022
240,000
65,284
70,200
2,072,582
2,025,000
2,138,640
2,095,000
0
2,985,028
2,847,615
3,103,900
1,194,434
3,459,038
591,046
5,841,074
536,732
5,588,271
659,672
5,928,772
9,389,188
10,467,250
10,518,357
11,703,642
39,833,357
42,091,943
40,708,780
44,538,617
15,794,134
18,147,954
17,913,840
13,656,768
1,302,743
1,426,078
1,665,799
1,839,855
1,541,594
1,755,798
1,187,160
2,189,451
18,638,471
21,329,831
20,766,799
17,686,074
9,389,188
10,467,250
10,518,357
11,703,642
0
(344,250)
(344,250)
(344,250)
9,389,188
10,123,000
10,174,107
11,359,392
140,163
139,402
120,280
166,307
622,026
584,405
486,356
541,358
276,044
303,500
278,695
361,462
75,108
82,295
87,861
82,932
325,912
339,889
396,662
416,062
Income (Loss)
0
0
116,450
233,605
263,500
242,139
369,402
663,581
727,120
710,766
2,313,020
20,563
45,026
29,751
38,677
552,277
743,630
1,220,269
1,122,055
172,829
128,208
109,169
151,105
33,928
37,821
35,545
35,956
719,309
1,510,723
1,226,772
1,560,430
30,102
61,277
32,611
69,748
8,326
79,511
36,999
85,199
12,470
8,330
9,343
8,500
170,957
169,150
145,784
190,400
407,934
302,770
317,001
473,350
4,465,134
5,526,557
5,486,003
8,102,413
32,492,793
36,979,387
36,426,909
37,147,879
1,293,830 1,286,985 1,248,225 2,436,750
843,373 7,665 8,711 12,350
2,137,203 1,294,650 1,256,936 2,449,100
34,629,996 38,274,037 37,683,845 39,596,979
Net Income (Loss) Before Capital Contributions
5,203,361
3,817,907
3,024,935
4,941,638
Capital Contributions
1,297,379
0
8,966
0
Net Income (Loss) Before Depreciation
6,500,740
3,817,907
3,033,901
4,941,638
Depreciation
6,380,976
6,590,000
7,282,836
8,005,000
Income (Loss)
119,764
(2,772,093)
(4,248,935)
(3,063,362)
Page 34 of 61
Yorba Linda Water District
Sewer Enterprise
Operating Budget for FY 2022-23
Page 35 of 61
FY21
Actual
FY22
Budget
FY22
Projections
FY23
Budget
Revenue (Operating):
Sewer Charge Revenue
2,440,237
2,844,118
2,844,129
3,115,771
Sewer Parcel Assessments (Locke Ranch)
302,763
331,878
318,381
363,158
Other Operating Revenue
133,281
40,803
143,309
116,255
Total Operating Revenue
2,876,281
3,216,799
3,305,819
3,595,184
Revenue (Non -Operating):
Interest
54,920
68,000
31,127
36,725
Other Non -Operating Revenue
54,766
10,400
165,392
33,270
Total Non -Operating Revenue
109,686
78,400
196,519
69,995
Total Revenue
2,985,967
3,295,199
3,502,338
3,665,179
Expenses (Operating):
Salary Related Expenses
1,558,707
1,988,746
1,789,403
1,933,167
Reduction for Capital Project Labor
0
(60,750)
(60,750)
(60,750)
Salary Related Expenses Total
1,558,707
1,927,996
1,728,653
1,872,417
Supplies & Services
Communications
24,504
24,600
20,705
26,693
Contractual Services
93,686
87,335
70,640
78,681
Data Processing
35,823
46,500
43,834
55,152
Dues & Memberships
12,701
14,504
15,505
14,590
Fees & Permits
36,137
47,951
44,520
51,928
Board Election
0
0
0
20,550
Insurance
41,370
46,500
42,730
65,188
Materials
55,921
73,030
59,551
64,280
District Activities, Emp Recognitior
3,469
7,946
5,244
6,823
Maintenance
248,598
229,770
356,006
405,845
Non -Capital Equipment
25,017
63,742
58,910
60,195
Office Expense
5,830
6,674
6,272
6,344
Professional Services
306,437
159,417
159,047
168,330
Training
5,756
16,748
12,751
13,402
Travel & Conferences
1,921
16,084
6,530
17,581
Uncollectible Accounts
3,436
1,470
1,994
1,500
Utilities
32,006
29,850
25,726
33,600
Vehicle Expenses
61,677
107,930
91,340
65,200
Supplies & Services Sub -Total
994,289
980,051
1,021,305
1,155,882
Total Operating Expenses
2,552,996
2,908,047
2,749,958
3,028,299
Expenses (Non -Operating):
Other Expense
16,030
5,700
11,992
5,785
Total Non -Operating Expenses
16,030
5,700
11,992
5,785
Total Expenses
2,569,026
2,913,747
2,761,950
3,034,084
Net Income (Loss) Before Capital Contributions
416,941
381,452
740,388
631,095
Capital Contributions
754,609
0
0
0
Net Income Before Depreciation
1,171,550
381,452
740,388
631,095
Depreciation
1,477, 379
1,525,685
1,486,812
1,495,000
Income (Loss)
(305,829)
(1,144,233)
(746,424)
(863,905)
Page 35 of 61
Page 36 of 61
Board of Directors
Page 37 of 61
2021 Actuals
2022 Budget
2022 Proiections
2023 Budget
Salary Related Expenses
Salaries
$
64,650
$
90,000
$
66,200
$
90,000
Fringe Benefits
1,251
1,466
1,394
2,237
Mandatory Benefits
5,247
7,412
5,460
7,412
Salary Related Expenses Total
$
71,148
$
98,878
$
73,054
$
99,649
Supplies & Services
Dues & Memberships
$
756
$
940
$
880
$
660
Board Election
-
-
-
137,000
District Meetings & Events
545
1,500
1,000
1,500
Non Capital Equipment
-
11000
500
2,000
Office Expense
1,137
800
400
800
Professional Services
26,279
33,000
33,000
33,000
Professional Development
400
1,200
600
2,400
Travel & Conferences
2,389
24,450
8,500
32,350
Supplies & Services Total
$
31,506
$
62,890
$
44,880
$
209,710
Page 37 of 61
Administration Department
2021 Actuals 2022 Budget 2022 Proiections 2023 Budget
Salary Related Expenses
Salaries
$
1,090,036
$
1,141,261
$
1,265,289
$
1,351,537
Fringe Benefits
295,106
881,670
238,859
647,827
Mandatory Benefits
1,454,173
1,296,688
1,707,778
1,738,027
Salary Related Expenses Total
$
2,839,315
$
3,319,619
$
3,211,926
$
3,737,391
Supplies & Services
Communications
$
82,485
$
67,452
$
34,990
$
91,750
Contractual Services
41,807
4,250
4,250
6,064
Dues & Memberships
77,095
85,154
92,376
85,507
Fees & Permits
-
-
403
1,000
Insurance
98
-
-
-
District Meetings & Events
7,001
17,621
10,609
13,500
Non Capital Equipment
2,492
6,000
3,426
3,500
Office Expense
2,035
6,700
4,183
1,700
Professional Services
246,396
567,140
574,082
476,000
Professional Development
2,788
6,495
3,000
5,500
Travel & Conferences
775
38,445
18,405
48,030
Supplies & Services Total
$
462,972
$
799,257
$
745,726
$
732,551
Page 38 of 61
Finance Department
Salary Related Expenses
Salaries
Fringe Benefits
Mandatory Benefits
Salary Related Expenses Total
Supplies & Services
Communications
Contractual Services
Dues & Memberships
Fees & Permits
District Meetings & Events
Maintenance
Non Capital Equipment
Office Expense
Professional Services
Professional Development
Travel & Conferences
Uncollectible Accounts
Supplies & Services Total
2021 Actuals 2022 Budget 2022 Proiections 2023 Budget
$ 1,044,642 $
1,174,818 $
1,162,765 $
1,197,527
240,141
234,459
279,103
221,839
112,161
127,496
124,453
130,628
$ 1,396,944 $ 1,536,773 $ 1,566,321 $ 1,549,994
$ 80,208 $
92,250 $
98,549 $
92,250
57,883
57,090
58,628
59,825
1,015
1,430
1,186
1,455
245,709
256,060
304,670
307,060
794
1,251
635
900
-
300
-
300
628
1,750
500
500
7,711
9,895
9,903
9,950
121,041
90,000
77,277
83,200
4,109
6,430
5,375
6,050
415
7,200
3,597
6,900
15,907
9,800
11,338
10,000
$ 535,420 $
533,456 $
571,657 $
578,390
Page 39 of 61
Engineering Department
2021 Actuals 2022 Budget 2022 Proiections 2023 Budget
Salary Related Expenses
Salaries
$
825,199
$
1,113,674
$
1,142,887
$
1,186,625
Fringe Benefits
63,709
202,099
169,314
224,392
Mandatory Benefits
101,312
114,636
105,918
118,736
Salary Related Expenses Total
$
990,220
$
1,430,409
$
1,418,119
$
1,529,753
Supplies & Services
Communications
$
254
$
800
$
3,946
$
4,000
Contractual Services
10,561
7,000
355
1,500
Data Processing
34,411
55,000
42,726
9,000
Dues & Memberships
757
1,350
1,700
2,050
Fees & Permits
9,928
10,980
15,380
13,130
Materials
2,256
-
1,362
-
District Meetings & Events
222
1,500
387
1,000
Maintenance
-
-
473,709
488,000
Non Capital Equipment
447
200
200
300
Office Expense
3,144
1,800
855
1,700
Professional Services
340,972
617,000
336,894
659,560
Professional Development
3,658
8,500
8,492
15,000
Travel & Conferences
-
10,500
7,229
2,500
Supplies & Services Total
$
406,610
$
714,630
$
893,236
$
1,197,740
Page 40 of 61
Operations Department
Salary Related Expenses
Salaries
Fringe Benefits
Mandatory Benefits
Salary Related Expenses Total
Supplies & Services
Contractual Services
Data Processing
Dues & Memberships
Fees & Permits
Materials
District Meetings & Events
Maintenance
Non Capital Equipment
Office Expense
Professional Services
Professional Development
Travel & Conferences
Utilities
Vehicle Expenses
Supplies & Services Total
2021 Actuals 2022 Budget 2022 Proiections 2023 Budget
$
3,645,213
$
3,984,953
$
3,899,245
$
4,455,852
795,471
942,544
1,003,322
1,018,146
486,654
515,191
517,373
578,536
$
4,927,338
$
5,442,688
$
5,419,940
$
6,052,534
$
262,587
$
403,300
$
285,400
$
394,200
$
32,830
$
40,000
$
32,000
$
-
$
1,004
$
700
$
-
$
700
$
106,412
$
120,800
$
120,729
$
146,800
$
714,384
$
770,150
$
765,990
$
2,372,300
$
5,680
$
6,000
$
5,748
$
6,000
$
789,766
$
988,100
$
1,093,038
$
1,029,600
$
167,518
$
158,000
$
139,122
$
180,000
$
15,723
$
14,500
$
16,272
$
17,500
$
44,759
$
30,000
$
30,000
$
45,000
$
18,137
$
44,800
$
22,470
$
43,200
$
1,489
$
12,200
$
2,500
$
2,500
$
114,986
$
100,000
$
86,988
$
125,000
$
469,612
$
410,700
$
408,341
$
538,550
$
2,744,886
$
3,099,250
$
3,008,597
$
4,901,350
Page 41 of 61
IT Department
Page 42 of 61
2021 Actuals
2022 Budget
2022 Proiections
2023 Budget
Salary Related Expenses
Salaries
$
82,561
$
87,097
$
83,836
$
91,444
Fringe Benefits
13,897
15,047
18,948
16,052
Mandatory Benefits
10,530
10,636
10,607
11,167
Salary Related Expenses Total
$
106,988
$
112,780
$
113,391
$
118,663
Supplies & Services
Contractual Services
$
88,638
$
109,000
$
176,344
$
113,450
Data Processing
244,625
255,000
247,803
407,614
Materials
2,862
5,000
2,965
5,000
District Meetings & Events
-
1,000
-
200
Maintenance
11,109
10,000
9,528
10,000
Non Capital Equipment
24,674
25,000
24,331
25,000
Office Expense
8,456
10,000
9,651
10,000
Professional Services
220,510
265,000
274,783
306,000
Professional Development
-
1,500
-
2,500
Utilities
87,978
99,000
84,522
99,000
Supplies & Services Total
$
688,853
$
780,500
$
829,928
$
978,764
Page 42 of 61
HR Department
2021 Actuals 2022 Budget 2022 Proiections 2023 Budget
Salary Related Expenses
Salaries
$
471,255
$
390,273
$
392,781
$
418,153
Fringe Benefits
91,928
78,203
69,233
81,309
Mandatory Benefits
52,759
46,373
42,995
49,363
Salary Related Expenses Total
$
615,942
$
514,849
$
505,009
$
548,825
Supplies & Services
Communications
$
1,719
$
3,500
$
3,500
$
5,000
Contractual Services
254,236
91,100
32,018
45,000
Dues & Memberships
7,183
7,225
7,225
7,150
Insurance
274,877
310,000
284,869
434,590
District Meetings & Events
9,789
24,100
16,617
22,400
Non Capital Equipment
2,088
-
-
-
Office Expense
1,553
800
553
650
Professional Services
25,789
68,000
59,783
126,000
Professional Development
6,765
9,100
5,425
8,500
Travel & Conferences
5,180
2,800
3,298
10,500
Supplies & Services Total
$
589,179
$
516,625
$
413,288
$
659,790
Page 43 of 61
Page 44 of 61
S -YEAR CIP SCHEDULE - FY23 Budget
PROJECT COST
FY2022-23
FY2023-24
FY2024-25
FY2025-26
FY2026-27
TOTAL
Planning & Design
280,513
586,400
50,000
-
-
916,913
Construction (Contract)
9,328,644
8,291,250
5,663,000
3,350,000
3,955,000
30,587,894
Project Management/Inspection
195,900
154,850
55,000
-
25,000
430,750
YLWD Capitalized Labor
966,516
869,825
567,500
335,000
395,500
3,134,341
ANNUAL CAPITAL IMPROVEMENT COST TOTAL
10,771,5731
9,902,3251
6,335,5001
3,685,0001
4,375,5001
35,069,898
PROJECT FUNDING
FY2022-23
FY2023-24
FY2024-25
FY2025-26
FY2026-27
TOTAL
PAY -GO
1,143,000
396,000
385,500
440,000
1,130,500
3,495,000
Line of Credit
2,095,447
-
-
-
-
2,095,447
Debt Funded
7,533,126
9,506,325
5,950,000
3,245,000
3,245,000
29,479,451
ANNUAL CAPITAL IMPROVEMENT FUNDING TOTAL
1 10,771,5731
9,902,3251
6,335,5001
3,685,0001
4,375,500
35,069,898
PROJECT NAME
FY2022-23
FY2023-24
FY2024-25
FY2025-26
FY2026-27
TOTAL
Hidden Hills BPS Upgrades
1,407,603
-
-
266,805
Santiago BPS Rehab
1,407,603
Timber Ridge BPS Pump Replacement
4,199,550
1,399,850
1,819,070
Well 23 Drilling & Equipping
- 1,734,900
5,599,400
Well 22 Equipping
1,901,208
-
Total Water CIP 1 $
9,958,573 $ 9,506,325 $
5,950,000 $
1,901,208
BNSF Crossing -Weir Canyon / YL Blvd
134,655
Main Street and YL Pines Sewer
813,000 -
-
-
134,655
BNSF Crossing -Veteran's Village and Highland
1,975,557
-
385,500
-
1,975,557
Resiliency Improvements to District Facilities (AWIA)
396,000
220,000
275,000
275,000
275,000
1,045,000
Site and Security Upgrades at District Facilities (AWIA)
-
220,000
275,000
275,000
275,000
1,045,000
Well Rehabilitation Project
440,000 $
165,000
165,000
165,000
165,000
660,000
Lakeview BPS Piping
330,000
-
-
-
-
330,000
Waterline Replacement *Based on AMP and Leak History
10,000
2,877,600
1,210,000
1,210,000
1,210,000
6,517,600
PRS Rehabilitation Project *Based on AMP and Asset Scores
803,100
1,320,000
1,320,000
1,320,000
4,763,100
Golden Ave Waterline
266,805
-
-
-
266,805
Santiago BPS Rehab
1,819,070
-
1,819,070
Well 23 Drilling & Equipping
- 1,734,900
2,705,000
-
-
4,439,900
Total Water CIP 1 $
9,958,573 $ 9,506,325 $
5,950,000 $
3,245,000 $
3,245,000 $
31,904,898
Main Street and YL Pines Sewer
813,000 -
-
-
-
813,000
Green Crest Lift Station Rehab
- -
385,500
-
385,500
Sewer System Rehabilitation and Replacement Project
396,000
-
440,000
-
836,000
Buena Vista Sewer Main Improvements
- -
-
-
1,130,500
1,130,500
Total Sewer CIP I $
813,000 $ 396,000 $
385,500 $
440,000 $
1,130,500 $
3,165,000
CIP Total $ 10,771,573 1 $ 9,902,325 1 $ 6,335,500 1 $ 3,685,000 1 $ 4,375,500 1 $ 35,069,898
Page 45 of 61
S -YEAR CIP SCHEDULE - FY23 Budget
CAPITAL OUTLAY FY23 I FY24 I FY25 I FY26 I FY27 I TOTAL
Network Redesign 30,000
Records Scanner 8,000
30,000
8,000
Operations Department 1,725,000 516,000 505,000 710,000 820,000 4,276,000
Outlay Total I $ 1,763,000 1 $ 516,000 1 $ 505,000 1 $ 710,000 1 $ 820,000 1 $ 4,314,000
Grand Total $ 12,534,573 1 $ 10,418,325 1 $ 6,840,500 1 $ 4,395,000 1 $ 5,195,500 1 $ 39,383,898
Page 46 of 61
ITEM NO. 7.6.
Yorba Linda
Water District
/_[r]=1►1I7_\V=1161AI
MEETING DATE: May 24, 2022
TO: Board of Directors
FROM: Doug Davert, Assistant General Manager / Interim General
Manager
STAFF CONTACTS: Delia Lugo, Finance Manager
SUBJECT: Selection of Investment Banking/Underwriting Services for 2022
Debt Issuance
RECOMMENDATION:
That the Board of Directors authorize the Interim General Manager to engage Barclays for
investment banking/underwriting services for the 2022 debt issuance for an amount not to
exceed $70,000.
BACKGROUND:
On April 26, 2022, Robert Porr and Lora Carpenter of Fieldman, Rolapp & Associates, Inc.,
the District's municipal advising firm, coordinated efforts with staff and distributed a Request
for Proposals (RFP) for Investment Banking/Underwriting Services to eight (8) qualified
investment banking firms for the planned 2022 debt issuance. Firms were asked to respond by
Monday, May 16, 2022, at 3:00 p.m. to questions pertaining to their firm's experience,
knowledge of structuring opportunities, sales capabilities, recent transactions comparable to
that of the District, qualifications as investment bankers, information on the market, and a
potential refunding opportunity of the Refunding Revenue Bonds, Series 2012A.
As of the submission deadline, three (3) responses to the RFP were received. Fieldman and
staff's review and evaluation of the responses rated Barclays with the highest score based on
their team experience, strong balance sheet and sales capabilities, and comparable fees.
ATTACHMENTS:
1. RFP for Underwriting Services
2. Presentation from Fieldman, Rolapp & Associates, Inc.
Page 47 of 61
Yorba Linda Water District
Series 2022 Revenue Bonds
Approximately $25 - $30 Million Par Amount
Request for Proposal for
Investment Banking / Underwriting Services
On behalf of Yorba Linda Water District, (the "District"), we are distributing this Request for
Proposal ("RFP") for investment banking/underwriting services for the District's anticipated
issuance of 2022 Revenue Bonds (the "2022 Bonds"). The District is looking to finance new
infrastructure projects and prior incurred capital costs in the range of $25-$30 million.
Submittal information:
Responses are to be delivered electronically to Delia Lugo, Finance Manager of the District, and
Robert Porr and Lora Carpenter of Fieldman, Rolapp & Associates, Inc. no later than 3:00 PM
pacific time on Monday, May 16, 2022.
Delia Lugo dlugo&ylwd.com
Robert Porr rporr e,fieldman.com
Lora Carpenter lcarpenter e fieldman.com
Responses should be no more than ten pages excluding Resumes and Attachments. The review
panel may request detailed cash flows at its discretion, if necessary.
The District certifies this request has been sent to at least 3 firms.
I. BACKGROUND
Introduction
The District has outstanding Series 2012A and 2017A Bonds rated "AA+" by S&P and Fitch. The
District anticipates offering approximately $25 - $30 million of bonds to finance new infrastructure
projects and reimburse itself for prior incurred capital costs. The expected term of the 2022 Bonds is
anticipated to be thirty years.
Timeline
Preliminarily, the transaction is anticipated to price in July and close in July / August 2022.
The Project Team
Fieldman, Rolapp & Associates, Inc. has been retained by the District as its Municipal Advisor and
Stradling Yocca Carlson & Rauth ("Stradling") will serve as Bond Counsel and Disclosure Counsel.
Page 48 of 61
Yorba Linda Water District
Request for Proposals
Page 1
Selection Considerations & Criteria
The District intends to select a sole senior -manager and the selection criteria will be based on the
underwriting firms' qualifications and proposed fees, subject to approval by the District's Board of
Directors. The District reserves the right to negotiate fees prior to the selection of a sole senior -
manager. The District further reserves the right to reject all proposals.
II. QUALIFICATIONS
Describe your sales capability related to California municipal water/wastewater
financings. Please provide an example of your firm's pricing of a California wastewater, or
water utility's bonds completed within the past three months. Include details of the
obligations' pre -pricing scale as well as the final scale. Also, include principal amounts
underwritten by maturity and the amount of takedown by maturity for all maturities.
2. Provide a List of Transactions Completed detailing your firm's experience as senior manager
for California-based water/wastewater revenue -supported bonds in the last 3 years. Clearly
identify the senior and support bankers and the underwriter on each transaction listed.
3. Provide a forecast of tax-exempt interest rates assuming the 2022 Bonds are issued before
the end of the Calendar Year. Provide your forecast of the number and amount of federal
reserve interest rate hikes and the impact this may have on the issuance of debt.
4. Provide an analysis of the estimated refunding savings for the District's outstanding debt.
The amortization of the refunding can be different from any existing amortization or tenor,
the objective is to optimize savings for the District.
5. Provide a proposed project team, including your underwriter, and provide resumes and roles
of each team member. Discuss how your team will work together to provide banking
services to the District and its governing body. Provide each team member's experience
over the last 3 years with:
a. California water enterprise revenue bonds, revenue certificates of participation and
note/highlight taxable (senior managed transactions only) issuances.
6. Disclose or discuss any potential conflicts of interest your firm may have in acting as
underwriter for the District.
III. FEES
Provide a detail of your proposed fees and expenses for the financing, and any assumptions used in
deriving your fee structure. Include takedowns broken out by maturity. For consistency of
comparison, please assume a combined par amount of $30 million.
Include the proposed cost of underwriter's counsel as a fixed expense item and provide the name of
the firm and the lead attorney you propose to retain.
Underwriter RFP = HELDMAN I ROLAPP
& ASSOCIATES
Page 49 of 61
i
FIELDMAN I T OLAPP
- & ASSOCIATES
EKPEPIENCE. INTEGRITY A SERVICE
FIELDMAN, ROLAPP & ASSOCIATES INC.
YORBA LINDA WATER DISTRICT
BOARD MEETING
Yorba Linda
Water District
May 24, 2022
Page 50 of 61
UNDERWRITERRFPOVERVIEW
The District distributed the Request for Proposal to provide Underwriting
Services to eight qualified investment banking firms on April 26, 2022,
and received responses from the following:
✓ Barclays
✓ JP Morgan
✓ UBS Financial Services
Firms were asked to respond to select questions pertaining to their firm's
experience, knowledge of structuring opportunities, sales capabilities,
recent transactions comparable to that of the District, qualifications as
investment bankers and information on the market and 2012A refunding
opportunity
FIELDMAN I ROLAPP Page 51 of 61
& ASSOCIATES
IMPORTANT CONSIDERATIONS
Sales Capabilities: Having a large network of retail, professional
retail and institutional investor relationships helps market and sell
the bonds at the lowest possible interest expense, especially during
today's rising interest rate environment.
Financing Team and Knowledge of the Market: A strong and
capable banking team ensures the District they will have the
necessary experience needed to assist in a successful financing and
price during high levels of volatility and uncertainty in the market.
Financial Plan: It is important for the underwriter to know and
understand the client's credit story, outstanding debt profile and
timing of the pricing.
✓ The ability to market the bonds effectively while considering the
overall credit rating and structure of the debt
Conflicts of Interest: An unbiased underwriting team who has clear
objectives and strategies.
FIELDMAN I ROLAPP Page 52 of 61
& ASSOCIATES
SUMMARY AND EVALUATION
Fieldman and staff's review and evaluation of all proposals
graded [Barclays] with the highest score
[Barclays] is recommended based on their team experience,
strong balance sheet and sales capabilities and comparable
fees
✓ Barclays proposed takedown is $1.50/bond (total proposed
compensation is about $2.294/bond, or $70,000)
FIELDMAN ROLAPP Page 53 of 61
R ASSOCIA1 IS
SOURCES AND USES: NEW MONEY & REFUNDING
Par Amount
Premium
T)ictrict CnntriNitinn
$27,135,000
$3,185,817
O�n
$4,785,000
$576,946
5 RRA
$31,920,000
$3,762,764
�4�5 RRA
Project Fund $30,000,000 $0 $30,000,000
Escrow Deposit $0 $5,739,181 $5,739,181
Cost of Issuance $320,817 $58,649 $379,466
True Interest Cost 4.21% 2.94% 4.13%
Refunding NA 3.11% 3.11%
Savings
Maximum Annual $2,372,125 $566,500 $2,372,125
Debt Service
Final Maturity 10/1/2052 10/1/2033 10/1/2052
*Preliminary, subject to change. Pricing scale provided by Barclays, market conditions as of May 9, 2022.
FIELDMAN I ROLAPP Page 54 of 61
& ASSOCIATES
ESTIMATEDAGGREGATEDEBT PROFILE
$5,000,000
$4,000,000 I
$3,000,000
$2,000,000
$1,000,000
$0
O6v O6v 00� QT' 6V O9 O9 O'5O (Z 55 O'55 (: 55 (ZIO O'5 65 O'5 O'55 O'5O OHO Ory (Z 11,(Z � Q� ' �x OHO O�A O,� O�� Oho Ohy Ohm Ohl
■ Series 2022 Revenue Bonds ■ Refunding of Series 2012A Bonds ■ Series 2017A Revenue Bonds
*Preliminary, subject to change. Pricing scale provided by Barclays, market conditions as of May 9, 2022.
FIELDMAN I ROLAPP Page 55 of 61
& ASSOCIATES
REVISEDFINANCING SCHEDULE
Tuesday, May 24, 2022 Board Approval of Underwriter
+/- Thursday, June 30, 2022 Rating Call @ TBD
Monday, July 4, 2022 July 4th Holiday
Monday, July 11, 2022 Credit Ratings received
Tuesday, July 12, 2022 Board Meeting to approve legal documents and the POS
Wednesday July 20, 2022 Bond Pricing
Thursday, July 28, 2022 Closing and receipt of funds
Note: Preliminary, subject to change.
FIELDMAN I ROLAPP Page 56 of 61
& ASSOCIATES
-4
HELDMAN I ROLAPP
& ASSOCIAFES
OVERVIEW OF US TREASURY &
MUNICIPAL BOND MARKETS
Page 57 of 61
US TREAsuRy YiELDs JANuARY 3,11.2022 — MAY 16� 2Q22
Historic US Treasury Yields
(January 3, 2022 through May 16, 2022)
3.50
10 -Year UST 30 -Year UST
3.00
2.50
2.00
1.50
1.00
0.50
0.00
oCL, O6 011 1 O`�, `ti, 11�1 011 1
FIELDMAN I ROLAPP Page 58 of 61
& ASSOCIATES
HISTORIC CHANGE IN `AAA' MMD YIELDS
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
FIELDMAN I ROLAPP
& ASSOCIATES
Historic Change in 'AAA' MMD Yields
(April 26, 2017 through May 16, 2022)
'AAA' MMD 10 -Year Yields 'AAA' MMD 30 -Year Yields
N1261202,,
0,612�21
0,61222
Page 59 of 61
$20,000 ,
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
($25,000)
($30,000)
($35,000)
($40,000)
($45,000)
MuNiBONDFLOWS
Monthly Flow Into and Out of Municipal Bond Mutual Funds
a1 a1 D1 01 D1 (01) 01 01) 00 0000 00 O O O O ^-4 ^-4 ' ,--4 { ,--4 - — N N N N N
N N N N N N N N N N N N N N N N N N N N N N N N N N
Im a) o a.) cd 0
ti ti C O z Q ti 4, ti H O Z Q' -n w d ti CAO Z Q"') w
Source: ICI Investment Company Institute
FIELDMAN I ROLAPP Page 6d of 61
& ASSOCIATES
DISCLAIMER
These materials include an assessment of current market conditions, and
include assumptions about interest rates, execution costs, and other matters
related to municipal securities issuance or municipal financial products. These
assumptions may change at any time subsequent to the date these materials
were provided. The refinancing and refunding scenarios presented herein are
not intended to be inclusive of every feasible or suitable refinancing
alternative.
Fieldman, Rolapp & Associates, Inc. is an SEC -registered Municipal Advisor,
and undertaking a fiduciary duty in providing financial advice to the Yorba
Linda Water District only. Compensation contingent on the completion of a
financing or project is customary for municipal financial advisors. To the
extent that our compensation for a transaction is contingent on successful
completion of the transaction, a potential conflict of interest exists as we would
have a potential incentive to recommend the completion of a transaction that
might not be optimal for the public agency. However, Fieldman, Rolapp &
Associates, Inc. undertakes a fiduciary duty in advising public agencies
including the Authority regardless of compensation structure.
FIELDMAN ROLAPP Page 61 of 61
R ASSOC1A1 IS
BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING
ITEM NO.
Yorba Linda
Water District
SUBMITTED BY: Delia Lugo, Finance Manager
MEETING DATE: May 24, 2022
ow
ITEM NO. 7.5.
Proposed FY2022-23 Budget Summary
Proposed Rates:
• Water — 9% with a $0.02 Pass-through on Commodity Rate
• Sewer — 9%
• The cost change on an average customer (18 units) bill will be an
increase of $10.29 or 9.4% (including Capital Finance Charge).
Revenue:
• Water -The pass-through on commodity rate has increased water
operating revenue by approximately $14ok.
• Sewer -The reduction in rate adjustment from 15% to 9% has
decreased sewer operating revenue by approximately $193k.
Production:
• Total Demand 19,449
• Ground Water 76% Import Water 24%
SUBMITTED BY: Delia Lugo, Finance Manager
2 Mf1,FT,,!tVG DATE: May 24, 2022
ITEM NO. 7.5.
Proposed FY2022-23 Budget Summary Cont.
Expenses:
• No changes from last presentation.
• During the budget workshop process addressed expenses have been
adjusted for better financial standing. Such as Travel & Conferences,
Maintenance and Professional Development.
Debt Coverage:
• Projected Debt Service $3,686,750 (Principle & Interest) for FY2022-23
• Debt coverage ratio 2.00
• Per Policy 2.25
Capital Improvement Projects:
• Well 23 has been deferred until FY24 to ensure the need to construct
upon completion of the Water Master Plan in FY2022-23.
• The Green Crest Lift Station Rehab has been deferred until FY25
because of possible earmark funding.
SUBMITTED BY: Delia Lugo, Finance Manager
3 Mf1,FT,,!tVG DATE: May 24, 2022
ITEM NO. 7.5.
SUBMITTED BY: Delia Lugo, Finance Manager
MEETING DATE: May 24, 2022
ITEM NO. 7.5.
Financial Summary - Consolidated
SUBMITTED BY: Delia Lugo, Finance Manager
5 Mfl,�TItVG DATE: May 24, 2022
Prior Year
Projected
Budget
Revenue
FY2020-21
FYE2021-22
FY2022-23
Revenue (Operating)
$
39,250,600
$
38,426,328
$
42,205,029
Revenue (Non -Operating)
3,568,724
5,784,790
5,998,767
Total Revenue
$
42,819,324
$
44,211,118
$
48,203,796
Rate Study Assumptions
$
39,720,066
$
43,727,333
$
46,560,875
Variance %
8%
1%
4%
Expenses
Expenses (Operating):
Variable Costs
$
18,638,471
$
20,766,799
$
17,686,074
Salary Related Expenses
10,947,895
11,902,760
13,231,809
Supplies & Services
5,459,423
6,507,308
9,258,295
Expenses (Non -Operating)
2,153,233
1,268,928
2,454,885
Total Expenses
$
37,199,022
$
40,445,795
$
42,631,063
Rate Study Assumptions
$
36,725,574
$
39,170,380
$
38,222,320
Variance %
1%
3%
12%
Net Position Before Capital Contributions &
Depreciation
$
5,620,302
$
3,765,323
$
5,572,733
Capital Contributions
2,051,988
8,966
-
Depreciation
7,858,355
8,769,648
9,500,000
Total Net Income (Loss)
$
(186,065)
$
(4,995,359)
$
(3,927,267)
SUBMITTED BY: Delia Lugo, Finance Manager
5 Mfl,�TItVG DATE: May 24, 2022
ITEM NO. 7.5.
Financial Summary -Water
Revenue
Revenue (Operating)
Revenue (Non -Operating)
Total Revenue
Rate Study Assumptions
Variance
Expenses
Expenses (Operating):
Variable Costs
Salary Related Expenses
Supplies & Services
Expenses (Non -Operating)
Total Expenses
Rate Study Assumptions
Variance
Net Position Before Capital Contributions &
Depreciation
Prior Year
FY2020-21
$ 36,374,319
3,459,038
$ 39,833,357
$ 36,914,814
8%
$ 18,638,471
9,389,188
4,465,134
2,137,203
$ 34,629,996
$ 33, 630,572
3%
Projected
FYE2021-22
$ 35,120,509
5,588,271
$ 40,708,780
$ 40, 519, 621
0%
$ 20,766,799
10,174,107
5,486,003
1,256,936
$ 37,683,845
$ 36,113, 679
4%
Budget
FY2022-23
$ 38,609,845
5,928,772
$ 44,538,617
$ 42,892,602
4%
$ 17,686,074
11,359,392
8,102,413
2,449,100
$ 39,596,979
$ 34,994,157
13%
$ 5,203,361 $ 3,024,935 $ 4,941,638
Capital Contributions 1,297,379 8,966 -
Depreciation 6,380,976 7,282,836 8,005,000
Total Net Income (Loss) $ 119,764 $ (4,248,935) $ (3,063,362)
Debt Service $ 2,729,381
Ratio 2.38
Per Policy 2.25
SUBMITTED BY: Delia Lugo, Finance Manager
6 Mft2�TItVG DATE: May 24, 2022
$ 2,728,919
1.57
2.25
$ 3,686,750
2.00
2.25
ITEM NO. 7.5.
Financial Summary - Sewer
Rate Study Assumptions
Variance %
Net Position Before Capital Contributions &
Depreciation
Capital Contributions
Depreciation
Total Net Income (Loss)
$ 3,095,002 $ 3,056,701 $ 3,228,163
-175vo -10% -6%
$ 416,941 $ 740,388 $ 631,095
754,609 -
1,477,379 1,486,812
$ (305,829) $ (746,424)
SUBMITTED BY: Delia Lugo, Finance Manager
7 Mfl,�TItVG DATE: May 24, 2022
1,495,000
$ (863,905)
Prior Year
Projected
Budget
Revenue
FY2020-21
FYE2021-22
FY2022-23
Revenue (Operating)
$
2,876,281
$
3,305,819
$
3,595,184
Revenue (Non -Operating)
109,686
196,519
69,995
Total Revenue
$
2,985,967
$
3,502,338
$
3,665,179
Rate Study Assumptions
$
2,805,252
$
3,207,712
$
3,668,273
Variance %
6%
9%
0%
Expenses
_
Expenses (Operating):
Salary Related Expenses
$
1,558,707
$
1,728,653
$
1,872,417
Supplies & Services
994,289
1,021,305
1,155,882
Expenses (Non -Operating)
16,030
11,992
5,785
Total Revenue
$
2,569,026
$
2,761,950
$
3,034,084
Rate Study Assumptions
Variance %
Net Position Before Capital Contributions &
Depreciation
Capital Contributions
Depreciation
Total Net Income (Loss)
$ 3,095,002 $ 3,056,701 $ 3,228,163
-175vo -10% -6%
$ 416,941 $ 740,388 $ 631,095
754,609 -
1,477,379 1,486,812
$ (305,829) $ (746,424)
SUBMITTED BY: Delia Lugo, Finance Manager
7 Mfl,�TItVG DATE: May 24, 2022
1,495,000
$ (863,905)
ITEM NO. 7.5.
5 -Yr CIP FYz3 Budget
91
PROJECT NAME
FY2022-23
FY2023-24
FY2024-25
FY2025-26
FY2026-27
TOTAL
Hidden Hills BPS Upgrades
1,407,603
-
1,407,603
Timber Ridge BPS Pump Replacement
4,199,550
1,399,850
5,599,400
Well 22 Equipping
1,901,208
-
1,901,208
BNSF Crossing -Weir Canyon / YL Blvd
134,655
134,655
BNSF Crossing -Veteran's Village and Highland
1,975,557
-
-
-
-
1,975,557
Resiliency Improvements to District Facilities (AWIA)
220,000
275,000
275,000
275,000
11045,000
Site and Security Upgrades at District Facilities (AWIA)
220,000
275,000
275,000
275,000
11045,000
Well Rehabilitation Project
165,000
165,000
165,000
165,000
660,000
Lakeview BPS Piping
330,000
-
-
-
-
330,000
Waterline Replacement *Based on AMP and Leak History
10,000
2,877,600
1,210,000
1,210,000
1,210,000
6,517,600
PRS Rehabilitation Project *Based on AMP and Asset Scores
-
803,100
1,320,000
1,320,000
1,320,000
4,763,100
Golden Ave Waterline
266,805
-
-
-
266,805
Santiago BPS Rehab
1,819,070
-
1,819,070
Well 23 Drilling & Equipping
-
1,734,900
2,705,000
-
-
4,439,900
Total Water CIP $
9,958,573
$
9,506,325
$
5,950,000
$
3,245,000
$
3,245,000
$
31,904,898
Main Street and YL Pines Sewer
813,000
-
-
-
-
813,000
Green Crest Lift Station Rehab
-
-
385,500
-
385,500
Sewer System Rehabilitation and Replacement Project
396,000
-
440,000
-
836,000
Buena Vista Sewer Main Improvements
-
-
1,130,500
1,130,500
Total Sewer CIP $
813,000
$
396,000
$
385,500
$
440,000
$
1,130,500
$
3,165,000
CIP Total $
10,771,573
$
9,902,325
$
6,335,500
$
3,685,000
$
4,375,500
$
35,069,898
CAPITAL OUTLAY
FY23
FY24
FY25
FY26
FY27
TOTAL
Network Redesign
30,000
-
-
-
-
30,000
Records Scanner
8,000
-
-
-
-
8,000
Operations Department
1,725,000
516,000
505,000
710,000
820,000
41276,000
Outlay Total $
1,763,000
$
516,000
$
505,000
$
710,000
$
820,000
$
4,314,000
12,534,573
$
10,418,325
$
6,840,500
$
4,395,000
$
5,195,500
$
39,383,898
Grand Total $
SUBMITTED BY: Delia Lugo, Finance Manager
8 Mfl,�TItVG DATE: May 24, 2022
REVISED — ITEM NO. 7.6.
FIELDMAN I ROLAPP
& ASSOCIATES
EXPERIENCE, INTEGRITY & SERVICE
�j]1111111�i1
fit � 07
FIELDMAN, Ro Pp &ASSOCIATES, INC.
YORBA LINDA WATER DISTRICT
BOARD MEETING
Yorba Linda
Water District
SUBMITTED BY: Delia Lugo, Finance Manager May 24, 2022
MEETING DATE: May 24, 2022
REVISED
UNDERWRITER RFP OVERVIEW
ITEM NO. 7.6.
The District distributed the Request for Proposal to provide Underwriting
Services to eight qualified investment banking firms on April 26, 2022, and
received responses from the following:
✓ Barclays
✓ JP Morgan
✓ UBS Financial Services
Firms were asked to respond to select questions pertaining to their firm's
experience, knowledge of structuring opportunities, sales capabilities, recent
transactions comparable to that of the District, qualifications as investment
bankers and information on the market and 2012A refunding opportunity.
—SUBMITTED B Lugo, Finance Manager
X11 Ass524, 2022
REVISED
IMPORTANT CONSIDERATIONS
ITEM NO. 7.6.
Sales Capabilities: Having a large network of retail, professional retail
and institutional investor relationships helps market and sell the
bonds at the lowest possible interest expense, especially during today's
rising interest rate environment.
Financing Team and Knowledge of the Market: A strong and capable
banking team ensures the District they will have the necessary
experience needed to assist in a successful financing and price during
high levels of volatility and uncertainty in the market.
Financial Plan: It is important for the underwriter to know and
understand the client's credit story, outstanding debt profile and
timing of the pricing.
✓ The ability to market the bonds effectively while considering the overall
credit rating and structure of the debt
Conflicts of Interest: An unbiased underwriting team who has clear
objectives and strategies.
—SUBMITTED B Lugo, Finance Manager
X11 Ass 524, 2022
REVISED
SUMMARY AND EVALUATION
ITEM NO. 7.6.
Fieldman and staffs review and evaluation of all proposals
graded Barclays with the highest score
Barclays is recommended based on their team experience,
strong balance sheet and sales capabilities and comparable fees
✓ Barclays proposed takedown is $1.50/bond (total proposed compensation
is about $2.294/bond, or $70,000)
SUBMITTED B Lugo, Finance Manager
X11 Ass
4
524, 2022
REVISED ITEM NO. 7.6.
SOURCES AND USES: NEW MONEY & REFUNDING
Par Amount
Premium
T)istrirt Cnntrikutinn
$27,135,000
$3,185,817
90
$4,785,000
$576,946
141, RR',
$31,920,000 6/30/2023
$3,762,764
943, RR', 6/30/2024
6/30/2025
6/30/2026
$30,000,000
$5,739,181 6/30/2027
$379,466
6/30/2028
6/30/2029
6/30/2030
I
6/30/2031
4.21% 2.94% 4.13%
6/30/2032
NA 3.11% 3.11%
6/30/2033
$2,372,125 $566,500 $2,372,125 6/30/2034
Project Fund $30,000,000 $0
Escrow Deposit $0 $5,739,181
Cost of Issuance $320,817 $58,649
True Interest Cost
Refunding Savings
Maximum Annual
Debt Service
Final Maturity
$149,504
$582,913
$583,663
$583,413
$587,038
$584,538
$581,038
$583,938
$585,963
$584,988
$587,788
$584,344
$154,541
$563,850
$561,750
$565,500
$566,500
$566,500
$560,625
$563,750
$565,625
$566,250
$565,625
$563,750
-$5,037
$19,063
$21,913
$17,913
$20,538
$18,038
$20,413
$20,188
$20,338
$18,738
$22,163
$20,594
10/1/2052 10/1/2033 10/1/2052 TOTAL $6,579,123 $6,364,266 $214,857
-SUBMITTED B Lugo, Finance Manager
X11 Ass524, 2022
REVISED ITEM NO. 7.6.
ESTIMATED AGGREGATE DEBT PROFILE
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � m
otic (9 otic' CST otic otic' & ("5 (95 oQ) N''5 25 (95 o�° 65 65 65 65 QP o°° Q°K Q°K Q°K o°° lz �, o°° o°A
■ Series 2022 Revenue Bonds ■ Refunding of Series 2012A Bonds ■ Series 2017A Revenue Bonds
—SUBMITTED B Lugo, Finance Manager
X11 Ass524, 2022
REVISED
REVISED FINANCING SCHEDULE
Tuesday, May 24, 2022 Board Approval of Underwriter
+/- Thursday, June 30, 2022
Rating Call @ TBD
Monday, July 4, 2022
July 4th Holiday
Monday, July 11, 2022
Credit Ratings received
Tuesday, July 12, 2022
Board Meeting to approve legal documents and the POS
Wednesday July 20, 2022
Bond Pricing
Thursday, July 28, 2022
Closing and receipt of funds
—SUBMITTED B Lugo, Finance Manager
X11 Ass524, 2022
ITEM NO. 7.6.
Z
REVISED _ ITEM NO. 7.6.
L I ELD AN I ROLAPP
& ASSOCIATES
Y- � �j]11111111j1
71
ori m
_- -- -. _ 1 '.>
OVERVIEW OF US TREASURY &
MUNICIPAL BOND MARKETS
SUBMITTED BY: Delia Lugo, Finance Manager
MEETING DATE: May 24, 2022
REVISED ITEM NO. 7.6.
INTEREST ]RATE FORECAST
The Bloomberg consensus for Fed Funds and U.S. Treasury market
forecast is provided in the table below — serves as a proxy for the tax-
exempt municipal market given the historical correlation
✓ Short-term rates will continue to rise as the Fed attempts to combat
immediate inflationary conditions
CUrrent
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Expected
Change by
Q1 23
0.75-1.00
1.25-1.50
2.00-2_
2.50`2.75
2.75-3.00
—SUBMITTED B Lugo, Finance Manager
X11 Ass 524, 2022
2 -Year
U
2.56
2.57
2.69
2.74
2.82
+26 bps
10 -bear
UST
2.84
2.64
2-71
30 -bear
UST
3.00
2-75
2.85
2.76 2.93
2.84 3.02
+0 bps +2 bps
9
REVISED ITEM NO. 7.6.
US TREASURY YIELDS JANUARY 3, 2022 - MAY 16, 2022
Historic US Treasury Yields
(January 3, 2022 through May 16, 2022)
3.50
10 -Year UST 30 -Year UST
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Otis
00�
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00'�
ti\v1\L
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\�~\L
00�
' \'
Otis
' \"'
O`1�
'1\` \L
00�
ti\`�'�\L
O`1�
^�\^\L
00�
\��\L
Otis
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00�
\1�\L
Otis
D\�\L
00'�
p\ti~\L
O�'�
p\��\L
00�
p\1�\L
—SUBMITTED B Lugo, Finance Manager
X11 Ass 524, 2022 10
REVISED ITEM NO. 7.6.
HISTORIC CHANGE IN AAA' MMD YIELDS
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
X12612°1"
Historic Change in 'AAA' MMD Yields
(April 26, 2017 through May 16, 2022)
—'AAA' MMD 10 -Year Yields —'AAA' MMD 30 -Year Yields
A, 12012°1$ N1161Z°19 N12612 6,12612°21 12612°Zz
—SUBMITTED B Lugo, Finance Manager
X11 Ass 524, 2022
11
174
MUNI BOND FLOWS
$20,000
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
($25,000)
($30,000)
($35,000)
($40,000)
($45,000)
REVISED
Monthly Flow Into and Out of Municipal Bond Mutual Funds
illiliilli.
� Monthly Inflow / Outflow
3 -Month Moving Average
ITEM NO. 7.6.
ca v p ami ;J p ami ila cd
O Z O Z O Z q �w
—SUBMITTED B Lugo, Finance Manager
X11 Ass524, 2022 12
� Monthly Inflow / Outflow
3 -Month Moving Average
ITEM NO. 7.6.
ca v p ami ;J p ami ila cd
O Z O Z O Z q �w
—SUBMITTED B Lugo, Finance Manager
X11 Ass524, 2022 12
REVISED ITEM NO. 7.6.
DISCLAIMER
These materials include an assessment of current market conditions, and include
assumptions about interest rates, execution costs, and other matters related to
municipal securities issuance or municipal financial products. These assumptions
may change at any time subsequent to the date these materials were provided.
The refinancing and refunding scenarios presented herein are not intended to be
inclusive of every feasible or suitable refinancing alternative.
Fieldman, Rolapp & Associates, Inc. is an SEC -registered Municipal Advisor, and
undertaking a fiduciary duty in providing financial advice to the Yorba Linda
Water District only. Compensation contingent on the completion of a financing
or project is customary for municipal financial advisors. To the extent that our
compensation for a transaction is contingent on successful completion of the
transaction, a potential conflict of interest exists as we would have a potential
incentive to recommend the completion of a transaction that might not be
optimal for the public agency. However, Fieldman, Rolapp & Associates, Inc.
undertakes a fiduciary duty in advising public agencies including the Authority
regardless of compensation structure.
—SUBMITTED BY'� D I' Lugo, Finance Manager
]j9 kr 524, 2022
13