HomeMy WebLinkAbout2017-04-20 - Ad Hoc Citizens Advisory Committee Meeting Agenda Packet
AGENDA
YORBA LINDA WATER DISTRICT
CITIZENS ADVISORY COMMITTEE MEETING
Thursday, April 20, 2017, 6:00 PM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. ROLL CALL
3. PUBLIC COMMENTS
Any individual wishing to address the committee is requested to identify themselves and state the matter on
which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for
their comment when the item is considered. No action will be taken on matters not listed on this agenda.
Comments are limited to matters of public interest and matters within the jurisdiction of the Water District.
Comments are limited to three minutes.
4. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and committee discussions are needed prior to
formal committee action.
4.1. Review of Minutes from Meeting Held April 13, 2017
Recommendation: That the Committee review the minutes and provide requested
revisions to the Facilitator.
4.2. Committee's Recommendations to the Board of Directors
Recommendation: That the Committee formulate and approve recommendations to
the Board of Directors on the following topics: conservation program, administrative
penalties, and conservation reserve; financial reconciliation and customer refund;
replacement and refurbishment of capital facilities and other elements of the Capital
Improvement Plan; water rate structure; communications and transparency; and
overall implementation process.
5. DISCUSSION ITEMS
This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar
items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda
may also include items for information only.
5.1. Future Meeting Schedule and Agenda Items
6. ADJOURNMENT
6.1. The next Ad Hoc Citizens Advisory Committee meeting will be held Thursday, April 27,
2017 at 6:00 p.m.
Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items
and are distributed to a majority of the Committee less than seventy-two (72) hours prior to the meeting will be available
for public inspection in the lobby of the District’s business office located at 1717 E. Miraloma Avenue, Placentia, CA
92870, during regular business hours. When practical, these public records will also be made available on the District’s
internet website accessible at http://www.ylwd.com/.
Accommodations for the Disabled
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 4.1
AGENDA REPORT
Meeting Date: April 20, 2017
Subject:Review of Minutes from Meeting Held April 13, 2017
STAFF RECOMMENDATION:
That the Committee review the minutes and provide requested revisions to the Facilitator.
ATTACHMENTS:
Name:Description:Type:
2017-04-13_-_Minutes_-_AHCAC.docx Minutes Minutes
Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 13, 2017 at 6:00 p.m. 1
MINUTES OF THE
YORBA LINDA WATER DISTRICT
AD HOC CITIZENS ADVISORY COMMITTEE MEETING
Tuesday, April 13, 2016, 6:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The April 13, 2017 meeting of the Yorba Linda Water District’s Ad Hoc Citizens
Advisory Committee was called to order at 6:00 p.m. The meeting was held in
the Training Room at the District’s Administration Building located at 1717 East
Miraloma Avenue, Placentia California 92870.
2. ROLL CALL
COMMITTEE MEMBERS PRESENT
Terry Harris (Chair) Pamela Hymel
Dennis Anderson William Lawrence
Lindon Baker Ben Parker
Jeff Decker Cristy Parker
Kent Ebinger Kenneth Tam
YLWD STAFF PRESENT
Steve Conklin, Engineering Manager
John DeCriscio, Operations Manager
Malissa Muttaraid, Public Affairs Representative
OTHER ATTENDEES
Brent Ives, Principal, BHI Management Consulting
3. PUBLIC COMMENTS
Mr. Noel Ensley, resident, asked for a sophisticated, fair, equitable and
proportional rate structure driven by several factors. He also provided his written
comments to staff to be added to the record as follows:
“I Propose that YLWD adopts:
1. Equitable and proportional
2. Indoor water allowance based on # of household members
3. Outdoor water allowance based on plot size – Rome’s footprint
4. Water pricing tiers to encourage conservation and discourage waste
5. Energy cost recovery based on elevation (“pumping zone”) and volume
of water used”.
Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 13, 2017 at 6:00 p.m. 2
Ms. Pat Nelson, resident, indicated that she was in favor of a tiered structure and
commented on the need to be careful with how it is designed. She was assured
that the committee had covered that issue and understands the issue regarding
that type of structure.
4. ACTION CALENDAR
4.1. Review of Minutes from meeting held on April 6, 2017
The committee reviewed the minutes and provided comments on the
section for Item No. 6.1. The committee then determined to accept the
minutes as revised.
5. DISCUSSION ITEMS
5.1 Overview of District’s 5-Year Capital Improvement Program
Mr. Steve Conklin and Mr. John DeCriscio provided a presentation on the
District’s Capital Improvement Plan (CIP) origin, design and status. The
PowerPoint presented has been placed on the committee’s information
hub. The presentation covered origins of the CIP, its linkage to
engineering studies and past Board decisions. Also discussed were the
status of major projects such as Well 22 and the Fairmont booster pump
station. The presenters then discussed the CIP budget with the
committee.
Members of the public and committee were allowed to ask questions
during the presentation. The presenters answered questions during the
presentation and after. Discussions after ranged from return on
investments and defining the term “reconciliation”. It was mentioned that
one of the options for the Board each year during budget determination
should be “rebate/refund”.
5.2. Budget Reconciliation for FY 2015/16 and FY 2016/17 Year to Date
Dr. Jeff Decker briefly overviewed his presentation from the April 6, 2017
AHCAC meeting. He provided a bottom-line comment that a rebate/refund
be provided to rate-payers so that rates can “reconcile” raising rates when
needed, rebated when overcharged. He provided the example of the West
Valley Water District who did such a rebate in the past.
Discussion within the committee and attending public proceeded. The
issue of clarity regarding the monies and their use should may be part of
the recommendation. Communication will be key, as pointed out by
committee members. The committee discussed what and if there should
be a recommendation from the committee regarding this issue.
Minutes of the Ad Hoc Citizens Advisory Committee Meeting Held April 13, 2017 at 6:00 p.m. 3
Mr. Ben Parker presented a rate review and his point regarding over-
charge with the rate adjustments over the last two years. Committee
agreed to move the discussion to the next agenda item for a potential
recommendation.
Member of the public asked the committee to not focus on the small
amount of potential rebate and invest in the system with any potential
extra money.
5.3. Outline, Format and Process for Committee’s Recommendation to the
Board of Directors
The committee discussed next steps toward advancing recommendations
to the Board. The committee brainstormed a set of broad topics for further
discussion and action on recommendations to be agendized in the
remaining meetings, which included the following:
Rate structure
R & R policies
Surplus/reconciliation/refund (to include past year, current year, and
processes moving forward)
Reserves
Communications and transparency
Conservation reserve/penalties
implementation (of our recommendations)
5.4. Future Meeting Schedule and Agenda Items
The next meeting is set for April 20, 2017 at 6:00 pm, and the committee
tentatively agreed to begin both discussion and action on
recommendations to the Board at the next meeting. The committee
expressed a preference to deploy the remainder of the facilitator contract
at the latter-most of the remaining meetings, to the extent possible, so as
to assist with meeting the committee’s recommendation deadline.
6. ADJOURNMENT
6.1. The meeting was adjourned at 8:30 p.m.
BI/MM
OTHER MATERIALS SUBMITTED DURING THE MEETING
Resolved:
1. We recommend that YLWD refund $72 per household for charging customers
revenues that exceeded the cost of service in FY 2015-16.
2. We recommend that YLWD annually review its Actual Revenues to Budgeted
Revenues and refund the amount that actual exceeds budgeted to YLWD ratepayers
in order to make sure that it only charges rates based upon its cost of service.
3.We recommend that YLWD include expected developer payments as an offset to
its Capital Budgets.
4. We recommend a detailed public statement of the inaccuracies and
misstatements in the Water Lines publications that inappropriately stated that the
Governor's conservation mandate created a $9 million adverse budget impact,
instead of less than the actual $4 million impact,that it inappropriately stated that
YLWD faced at any time in the foreseeable future the risk of bankruptcy because of
this mandate, and explain how increasing budgeted salary expenses that year by
over 18% was inappropriate.
MATERIALS SUBMITTED BY: Jeff Decker
MEETING DATE: April 20, 2017
YorbdLinda
Water VistriCt ANNUALoPEP.4riNe HUDGEr FISCAL YEAR20161,17
Capital Improvement Plan
1-404111 CIP 811 5 Year ap
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Subtotal 13,219,233 14,749,m 3,185,373 S 3,534,382 4,651,000 S 2.498,OW
RehabNkwtkm&Pintmation
R&R Subtotal S 6,688,590 5,158,585 S 191,720 1,057,760 S 2,060,100 S 973,1W S 1,5W,000 S 1,500MO
Vehicte and Capital Eguipment Aeoxement
Movr Yew swave Faer*af
Capftst tqutpment Reviacement-Sewer S 640,0(,K,'r 680,OW
M)'Oe"; 5 200,OCC 200,m9 S 200.000
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Vehicle&Cap"C-quOrnent Subtotal S 1,072A00 5 5 683500 5 767,000 $ 963,5W 365,0t S 377,DW S 380,WO S 375,000
Grand Total $20,979,823 20.591,323 4,144,093 S 12,555,642 S 7,076,1,00 3,849,100 S I.SW,OW S 1,875,0041
MATERIALS SUBMITTED BY: Jeff Decker
MEETING DATE: April 20, 2017
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MATERIALS SUBMITTED BY: Jeff Decker
MEETING DATE: April 20, 2017
C D E1 �w G iK L
1 j F9/10 FiQ/Si F11/12 F12113 F13J14 F14/15 FIS/16 F16/17• Adjusted 16/17YrD Feb16/17 CAGR
2 WATER REVENUES(subject to conservation) 22,141,731 22,686,893 21,344,221 22,832,449 34,030,311 21,433,660 16,824,065 18,468,302 18,458,302 12,312,201
3 .SERVICE CHARGES 3,757,058 4,468,716 4„341,965 5,012,958 10,559,242 10,194,930 10,194,930 6,796,620
.4 iNON-OP REVS 1,820,211 2,243,929 1,897,394 2,036,550 2,781,731 2,380,383 2,473,185' 778,962 2,473,185 519,308
5 .OTHER OP REVENUES 455,507 961,471 753,830 684,916 936,997 1,312,232 2,573,194 2,113,151 2,573,194 1,408,767
6 TOTAL REVENUES 24,417,449 25,911,651 27,752,503 30,022,631 32,091,004 30,139,233 32,429,686 31,555,344 33,709,611 21036896 0.04' 1
7 Water Revenues as a%of Total 0.91 0.88 0.77 0.76 0.75 0.71 0.52
8 VARIABLE COSTS 10,688,318 11,267,615 12,275,853 13,5 ,336 14,763,144 12,733,762 10,349,107 12,373,308 12.,373,308 8,248,872
09
9 Variable costs as a%Water Revs 0.48 0.50 0.58 0,59 0.61 0.59 0.62 Bounceback 1.201
10 Variable costs as a%Total Revenue 0.44 0.43 0.44 OAS 0.46 0.42 0.32 0.39 ,37j
11 'SALARIES 5,863,006 6,114,939 6,125,692 6,390,207 6,728,455 6,885,991 7,665,663 7,955,276 7,955,276 5,303,517 0.04
12 %increase in Salaries 0.04 0.00 0.04 0.05 0.021 0.1115 0.04
13 Salaries as a%of Variable Costs 0.55 0.54 0.50 0.47 0.46 0.54 0.74
14 'SUPPLIES AND SERVICE 3,172,250 3,160,419 3,461,250 3,890,552 3,451,602 3,482,351 3,629,996 3,876,405 3,876,405 2,584,270 0.03
15 !%increase in Supplies and Services 0.00 0.10 0.12 -0.11 0.01 0.04 0.07
16 Supplies as a%of Variable Costs 0.30 0,28 0.28 0.29 0.23 0.27 0.35
17 INTEREST AND NON-OP EXP 1,169,955 1,462,634 1,716,350 2,009,780 1,763,377 1,799,567 1,743,085 1,651,071 1,651,1171 1,100,714
18 TOTAL EXPENSES 21,097,996 22,005,607 23,579,145 25,799,875 26.616,578 24,901,671 23,387,855 24,204,989 24,204,989 16,136,659
19
20 :NET INCOME BEFORE CC 3,319,453 3,906,044 4,239,159 3,291,530 5,474,426 5,237,562 9,041,831 5,699,285 9,504,622 3,799>S23 i 0.08
21. %INCOME OF TOTAL REVENUE 0.14 0.15 0.15 0.11 0.17 0.17 0.28
22
23 Lost Revenues due to conservation 36% 6,056,6631
24 1 LOST CONTRIBUTION DUE TO 36%CONSERVATION 2,907,198 1 Lost contribution due to the eonsewation was just under$3 million
25
26 CIP Actual I 6,181,370 5,760,719 2,250,180 975,$01 4,144,093 19,312,163)
27 Net Income Before Capital Condbution 4,239,159 3,291,530 S„474,426 5,237,562 9,041,831 27,284,508
3/9
28 CIP AS A%OF NET INCOME 1.46 1.75 0.41 0.19 0.46 0.711
29 TotalRevenues
30 WATER MARKUP 1.49259208 2016/17 2015/16
31 TOTAL FIXED COSTS(TOTAL COSTS-VARIABLE COSTS 11,831,6818 Budgeted 31„590,178 30,698,501
TOTAL 33,709,511 32,429,686
.�, 70TA1 NON-WATER REVENUES 15,241,309 I Projected j
X33
33 , 2,119;433 1,731,185
34 refundperuser 88.31 72.13
35 1. WATER REVENUES HAVE GROWN AT 4% FROM 9/10 TO 16/17 1FIXED COSTS NONWATER REVENUES l
36 11,831,681 13,087,043
2.NET INCOME HAS GROWN BY 8%FROM„9/10.T016/17 _
. NET INCOME HAS EXCEEDED CIP BY ROUGHLY $8 MILLION
4. LOST CONTRIBUTION DUE TO 15/16 CONSERVATION WAS AROUND $3 MILLION
5. SALARY EXPENSES WERE RAISED BY 11% IN 15/16
6, REFUND WILL BE $72 PER HOUSEHOLD FOR 2015/16 AND IS PROJECTED TO BE $88 FOR 16/17
7. BOUNCEBACK ON WATER COSTS IS 20% FOR 16/17
8. YLWD WILL NEVER HAVE ANOTHER LOSING YEAR
VARIABLE WATER REVENUES ARE MARKED UP 49% OVER THE COST OF WATER.
OVERHEAD COSTS ARE NOW FULLY COVERED BY SERVICE FEES AND NON-OPERATING REVENUES
9. CIP IS HISTORICALLY 70% OF NET INCOME.
MATERIALS SUBMITTED BY: Jeff Decker
MEETING DATE: April 20, 2017