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HomeMy WebLinkAbout2019-05-28 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Tuesday, May 28, 2019, 6:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Brooke Jones, President Phil Hawkins, Vice President Andrew J. Hall, Director J. Wayne Miller, Director Al Nederhood, Director 4. ADDITIONS/DELETIONS TO THE AGENDA 5. INTRODUCTIONS AND PRESENTATIONS 5.1. Comments from Candidates for OC LAFCO's Special District Regular and Alternate Representatives 5.2. Elected Official Liaison Reports 5.3. Federal and State Legislative Update 6. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three minutes. 7. CONSENT CALENDAR All items listed on the consent calendar are considered to be routine matters, status reports, or documents covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion. There will be no discussion on the items unless a member of the Board, staff, or public requests further consideration. 7.1. Payments of Bills, Refunds, and Wire Transfers Recommendation: That the Board of Directors ratify and authorize disbursements in the amount of $607,267.20. 7.2. Directors' and General Manager Fees and Expenses Report for Third Quarter of Fiscal Year 2019 Recommendation: That the Board of Directors receive and file the Directors' and General Manager Fees and Expenses Report for Third Quarter of FY19. 7.3. Terms and Conditions for Water Service with LPPYL, Inc., 5091 Richfield Rd Ste A Recommendation: That the Board of Directors approve the Terms and Conditions for Water Service with LPPYL, Inc., 5091 Richfield Rd Ste A, Job No. 201924. 7.4. Award of Construction Contract for Camino Verde and Mickel Lane Waterline Improvements Recommendation: That the Board of Directors award the Construction Contract for Camino Verde and Mickel Lane Waterline Improvements to Cedro Construction, Inc. for $576,178.90, Job No. J2018-03. 7.5. Water Rates for Fiscal Year 2020 Recommendation: That the Board of Directors adopt Resolution No. 2019-XX ratifying action taken to adjust water rates effective July 1, 2019 and implement any potential commodity adjustment by October 1, 2019, and rescinding Resolution No. 18-32. 7.6. Water Development and Customer Service Fees Recommendation: That the Board of Directors approve Resolution No. 2019-XX adopting Water Development and Customer Service Fees and rescinding Resolution No. 18-19. 7.7. Sewer Development and Customer Service Fees Recommendation: That the Board of Directors approve Resolution No. 2019-XX adopting Sewer Development and Customer Service Fees and rescinding Resolution No. 18-20. 8. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 8.1. Sewer Rates for Fiscal Year 2020 Recommendation: That the Board of Directors adopt Resolution No. 2019-XX adjusting sewer rates effective July 1, 2019 and rescinding Resolution No. 18-22. 8.2. Operating Budget for Fiscal Years 2020 and 2021 (Financial Summaries) Recommendation: That the Board of Directors approve Resolution No. 2019-XX adopting the Operating Budget for Fiscal Years 2020 and 2021 (Financial Summaries) and rescinding Resolution No. 18-23. 8.3. Draft 2019 Water Quality Report Recommendation: That the Board of Directors approve the 2019 Water Quality Report and instruct staff to make it available on the District's website pursuant to State and Federal law regarding electronic delivery. 8.4. Formation of Assessment District to Finance the Conversion of Customer Private Septic Systems to the District's Public Sewer System Recommendation: That the Board of Directors direct staff to initiate the formation of an Assessment District as a pilot program to convert customer private septic systems to the District's public sewer system. 9. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 9.1. Debt Funding Alternatives for Critical Capital Improvement Projects (Jones) 9.2. Overview of Reserve Categories and Funding Levels (Jones) 9.3. Cost-Benefit Analysis of Electronic vs. Paper Billing (Nederhood) 9.4. Budget to Actual Reports for the Month Ending April 30, 2019 9.5. Cash and Investment Report for Period Ending April 30, 2019 10. REPORTS, INFORMATION ITEMS, AND COMMENTS 10.1. Directors' Reports • Intergovernmental Meetings, Conferences, and Events 10.2. General Manager's Report 10.3. General Counsel's Report 10.4. Future Agenda Items and Staff Tasks 11. COMMITTEE REPORTS 11.1. Interagency Committee with MWDOC and OCWD (Jones/Hawkins) • Meeting on May 23, 2019 at 4:00 p.m. has been cancelled and will be rescheduled. 11.2. Joint Agency Committee with City of Yorba Linda (Jones/Hawkins) • Next meeting scheduled June 17, 2019 at 4:00 p.m. at Yorba Linda City Hall. 11.3. Joint Agency Committee with City of Placentia (Jones/Hawkins) • Next meeting yet to be scheduled. 12. BOARD OF DIRECTORS ACTIVITY CALENDAR 12.1. Meetings from May 29 - July 31, 2019 13. ADJOURNMENT 13.1. Due to a schedule conflict, the Regular Board Meeting on Tuesday, June 11, 2019 at 6:30 p.m. will be rescheduled to a date yet to be determined. Items Distributed to the Board Less Than 72 Hours Prior to the Meetinq Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 5.1 AGENDA REPORT Meeting Date: May 28, 2019 Subject: Comments from Candidates for OC LAFCO's Special District Regular and Alternate Representatives ATTACHMENTS: Name: Description: Type: SJacobs Nom Rea.odf Backup Material Backup Material a ` BOARD OF DIRECTORS SAUNDRA F.JACOBS BETTY H.OLSON,PH.D CHARLEY WILSON CHARLES GIBSON JUSTIN McCUSKER DANIEL R.FERONS GENERAL MANAGER Santa Manfjauita Watem Distaict April 221, 2019 RECEIVED ECE"VED President Brooke Jones Yorba Linda Water District APR 3 0 2019 1717 E. Miraloma Ave. Placentia, CA 92870 By LINCr1 NA.T x,(�l5RiCT Dear President Jones: I am delighted to announce my candidacy for Special District Representative to the Orange County Local Agency Formation Commission("LAFCO"). I would be honored to receive your district's support to elect me as your next LAFCO Commissioner. In the next few years, LAFCO will be called on to address a host of issues on the governance in our county particularly as it relates to special districts. From the planned schedule of Municipal Service Reviews to the ultimate governance of the remaining unincorporated areas of the county— many of which are in south Orange County where I currently serve on the Board of the Santa Margarita Water District; there is much work to be done. My passion for public service and the work of special districts comes from my 23 years on the Santa Margarita Water District Board. As your President of the Executive Committee for the Independent Special Districts of Orange County I have a keen interest and awareness of the needs and requirements for the success of all special districts—from library, cemetery and vector control districts,to water, sewer, and other community services,both non-enterprise and enterprise. I hope that I have adequately demonstrated my willingness to provide leadership in organization, advo- cacy, and communications to benefit and nurture special districts of every stripe and that I am fully prepared to step in the role of LAFCO Commissioner. I have enclosed some background information on my experience in public service and business as well as my platform as a candidate for LAFCO Special District Representative. I would be de- lighted to meet with you and your board colleagues to discuss my candidacy and answer any ques- tions you may have. I hope you will contact me at 949/702-1145 or at saundrainasmwd.com. It would be my honor to serve you and our organizations and I humbly ask for your vote and support. Sincerely, aunara Jacobs, President Santa Margarita Water District Santa Margarita Water District •26111 Antonio Parkway,Rancho Santa Margarita,CA 92688 www.SMWD.com 0 (949)459-6420 Saundra F. Jacobs Candidate for Special District Representative,LAFCO Special District Organizations • President, Santa Margarita Water District, (Current; Elected board member since 1996) • President, Executive Committee, Independent Special Districts of Orange County, (Cur- rent; Board member since 1999 • South Orange County Watershed Management Area Executive Committee. (Current member, Former Chair) • Santiago Aqueduct Committee, Board of Directors, Alternate • California Special Districts Association, Member • California Women's Leadership Association, member • Association of California Water Agencies (ACWA), Region 10 member, Communica- tions Committee • ACWA Joint Powers Authority, Executive Committee Member • Orange County Water Association, member • Former President, Board of Directors, Lake Mission Viejo Association Professional Organizations • Registered Environmental Assessor • American Planning Association, Member • Association of Environmental Professionals, Member • California Wireless Association, Member Personal Backiaround I've been married to my husband Jeff for 25 years and have lived in Mission Viejo since 1992. I've raised 4 step-daughters and now have 14 beautiful grandchildren. I have an engrained work ethic from my mother who raised me and my 3 siblings by herself. Business Background I have been a business owner for the past 25 years and I specialize in regulatory compliance in the telecommunication industry. As a business owner of over 80 employees, 1 understand the value of budgets and working within those budgets. No Conflict of Interest I do not have any conflicts of interest or other external influences that would affect my judgement and decisions as a LAFCO Commissioner. Platform I believe LAFCO is a facilitating organization. Its job is to support and enable cooperative and voluntary applications and conduct the reviews and inquiries required by statute without bias or favor. I believe in local control; that local communities know what is best for their ratepayers, their residents and their businesses. I do not support involuntary consolidations or dissolutions of special districts or other units of government except in extreme cases of insolvency or other dire circumstances. 2 ITEM NO. 7.1 AGENDA REPORT Meeting Date: May 28, 2019 Budgeted:Yes To:Board of Directors Cost Estimate:$607,267.20 Funding Source:All Funds From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Reviewed by Legal:N/A Prepared By:Richard Cabadas, Accounting Assistant I CEQA Compliance:N/A Subject:Payments of Bills, Refunds, and Wire Transfers SUMMARY: Section 31302 of the California Water Code says the District shall pay demands made against it when they have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of disbursements for Board of Directors’ approval. STAFF RECOMMENDATION: That the Board of Directors ratify and authorize disbursements in the amount of $607,267.20. DISCUSSION: The items on this disbursement list include: a check of $139,820.88 to ACWA/JPIA for June 2019 medical & dental premiums; a check of $64,012.39 to Dell Marketing, L.P. for electronic replacement program - 35 pc's & 9 laptops; a check of $98,972.50 to Vincor Construction, Inc. for J2019-28 – Fairmont BPS – hardscape & landscape improvements; a wire of $44,099.37 to MWDOC for March 2019 water deliveries; a wire of $27,520.28 to So. California Gas Company for April 2019 gas charges at multiple locations; and a wire of $72,194.27 to So. California Edison for April 2019 electricity charges at multiple locations. The balance of $160,647.51 is routine invoices. The Accounts Payable check register total is $607,267.20. A summary of the disbursements is attached. PRIOR RELEVANT BOARD ACTION(S): The Board of Directors approves bills, refunds and wire transfers semi-monthly. ATTACHMENTS: Name:Description:Type: 19-CS_0528.pdf Cap Sheet Backup Material CkReg052819.pdf Check Register Backup Material Summary of Disbursements May 28, 2019 CHECK NUMBERS & WIRES: 05/28/2019 Computer Checks 74303-74376 $ 463,453.28 05/28/2019 Voided Checks 74377-74302 $ 0.00 ____________ $ 463,453.28 WIRES: W051519 MWDOC $ 44,099.37 W051519A So. California Gas Co. $ 27,520.28 W051719 So. California Edison $ 72,194.27 ____________ $ 143,813.92 TOTAL OF CHECKS & WIRES $ 607,267.20 ---------------------------------------------------------------------------------------------------------------------- DISBURSEMENT TOTAL: $ 607,267.20 ================================================================== APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD MEETING OF MAY 28, 2019 ==================================================================. Check No.Date Vendor Name Amount Description 74318 05/28/2019 ACWA/JPIA 139,820.88 MEDICAL & DENTAL PREMIUM - JUNE 2019 74320 05/28/2019 Al Nederhood 57.54 MILEAGE REIMBURSEMENT - APRIL 2019 74319 05/28/2019 Alfredo Vargas 446.66 TRAVEL EXPENSE - ESRI LEARNING CENTER 74321 05/28/2019 Aqua-Metric Sales Co.16,050.73 OPERATIONS WORK MATERIAL 74322 05/28/2019 Aramark 663.33 UNIFORM SERVICE 74376 05/28/2019 ARC 138.16 J18-03 - PW/DOCUMENT MANAGEMENT 74323 05/28/2019 AT & T - Calnet3 2,012.62 ATT CALNET3 74324 05/28/2019 Bee Busters, Inc 275.00 COLONY ABATEMENT - COMMERCIAL - (2) LOCATIONS 74325 05/28/2019 BIGGER THAN YOUR BLOCK 150.00 EMPLOYEE TRAINING 74326 05/28/2019 Brett R. Barbre 482.10 J19-14 - IT NETWORK REBUILD - REIMBURSEMENT 74327 05/28/2019 Brooke Jones 173.19 MILEAGE REIMBURSEMENT - APRIL 2019 74332 05/28/2019 C. Wells Pipeline 2,979.98 HYDRANT REPAIR PARTS 74328 05/28/2019 California Newspaper Partnership 642.00 LEGAL PUBLICATION - ORDINANCE 74304 05/28/2019 CHRIS QUIHUIZ 1,062.69 CUSTOMER REFUND 74329 05/28/2019 City Of Placentia 160.00 ENCROACHMENT PERMIT - 190053 74330 05/28/2019 Cory Flores 123.91 EXPENSE REIMBURSEMENT 74331 05/28/2019 Culligan of Santa Ana 1,440.00 EQUIPMENT PE SOFTENER 74333 05/28/2019 Danielle Logsdon 145.00 REIMBURSEMENT - SWRCB CERTIFICATION 74334 05/28/2019 Dell Marketing L.P.64,012.39 ELECTRONIC REPLACEMENT PROGRAM - 35 PCs & 9 LAPTOPS 74310 05/28/2019 DENEEN WILLIAMS 177.28 CUSTOMER REFUND 74335 05/28/2019 Dick's Lock & Safe Inc.154.65 KEY & CYLINDER LOCK CHANGE 74336 05/28/2019 Doane and Hartwig Water Systems, Inc.1,828.44 CL2 REPLACEMENT PARTS 74337 05/28/2019 Eisel Enterprises, Inc.1,685.21 METER COVER AND LIDS 74338 05/28/2019 Employee Relations, Inc.10.00 EMPLOYMENT VERIFICATION 74339 05/28/2019 Employment Development Department 2,287.00 UNEMPLOYMENT INSURANCE BENEFIT CHARGE 74340 05/28/2019 Enthalpy Analytical, Inc.2,260.00 WATER QUALITY SAMPLING - APRIL 2019 74308 05/28/2019 EVELYN KACHIKWU 62.76 CUSTOMER REFUND 74342 05/28/2019 EyeMed 1,496.16 EYE MED PREMIUM - MAY 2019 74341 05/28/2019 Facility Builders & Erectors, Inc.6,750.00 DOOR REPAIR - MIRALOMA MAIN ENTRANCE 74315 05/28/2019 FARIBA ALBERT 75.24 CUSTOMER REFUND 74343 05/28/2019 Graybar Electric Co 523.45 SCADA SUPPLIES 74344 05/28/2019 Haaker Equipment Co.3,071.77 VEHICLE MAINTENANCE #197 & #215 74345 05/28/2019 Infosend Inc.7,245.38 BILLING & POSTAGE - CUSTOMER BILLING 74346 05/28/2019 Jacqueline Segura 12.82 MILEAGE REIMBURSEMENT - APRIL 2019 74303 05/28/2019 JAMES K LEONARD 17.21 CUSTOMER REFUND 74347 05/28/2019 Jeremy Smith 68.20 REIMBURSEMENT - MEETING SUPPLIES 74348 05/28/2019 Kidman Gagen Law 25,649.53 LEGAL SERVICES - APRIL 2019 74312 05/28/2019 KUMHINO INC 265.81 CUSTOMER REFUND 74349 05/28/2019 Managed Health Network 164.25 EAP - MAY 2019 74350 05/28/2019 Marc Marcantonio 101.04 MILEAGE REIMBURSEMENT - APRIL 2019 74309 05/28/2019 MAX SANDOVAL 8.56 CUSTOMER REFUND 74351 05/28/2019 Mc Fadden-Dale Hardware 204.49 HARDWARE SUPPLIES 74352 05/28/2019 Mc Master-Carr Supply Co.2,450.36 CL2 REPLACEMENT PARTS & HARDWARE SUPPLIES 74317 05/28/2019 MISSION PAVING & SEALING 1,536.10 CUSTOMER REFUND 74353 05/28/2019 Mobile Industrial Supply 8.00 WELDING SUPPLIES 74307 05/28/2019 MOHAMMAD A MAZED 225.00 CUSTOMER REFUND W051519 05/15/2019 Municipal Water District 44,099.37 WATER DELIVERIES - MARCH 2019 74354 05/28/2019 Nexus Office Environments 2,692.27 WAREHOUSE RACKS 74355 05/28/2019 Nickey Kard Lock Inc 6,750.40 FUEL - 04/16/19 - 04/30/19 74356 05/28/2019 One Source Distributors, LLC 462.54 SCADA SUPPLIES & MATERIALS 74358 05/28/2019 P.T.I. Sand & Gravel, Inc.2,957.18 ROAD MATERIAL 74357 05/28/2019 Plumbers Depot Inc.1,430.54 MAINTENANCE - WARTHOG 74359 05/28/2019 Quinn Company 9,596.22 CAT B6S HAMMER 74361 05/28/2019 R & S Overhead Doors of So-Cal, Inc 525.00 SERVICE CALL - 6X6 GRILL DOOR 74360 05/28/2019 Robertson's 1,067.69 READY MIX CONCRETE - SIDEWALKS 74362 05/28/2019 Sanders Paving, Inc.33,837.72 ASPHALT PAVING - (31) LOCATION 74363 05/28/2019 Shred Confidential, Inc.63.00 ONSITE SHRED SERVICE 74364 05/28/2019 Solarwinds Inc.4,337.00 NETWORK PERFORMANCE MONITOR SL2000 74365 05/28/2019 South Coast AQMD 265.96 CA AIR TOXICS "HOT SPOTS" PROGRAM FEES W051719 05/17/2019 Southern Calif Edison Co.72,194.27 ELECTRICITY CHARGES - MULTIPLE LOCATIONS - APRIL 2019 W051519A 05/15/2019 Southern Calif Gas Co.27,520.28 GAS CHARGES - MULTIPLE LOCATIONS - APRIL 2019 74366 05/28/2019 Stater Bros. Markets 98.82 PETTY CASH - O042019 & O043019 74367 05/28/2019 Step Saver Inc 1,330.65 COARSE SALT 74305 05/28/2019 SWIETLANA CAHILL 123.01 CUSTOMER REFUND 74368 05/28/2019 Trench Shoring 253.00 RENTAL - TRAFFIC PLATER Yorba Linda Water District Check Register For Checks Dated: 05/15/2019 thru 05/28/2019 74369 05/28/2019 Underground Service Alert 144.98 DIG SAFE BOARD FEES - 2018 74370 05/28/2019 Underground Service Alert 310.30 DIGALERT - APRIL 2019 74372 05/28/2019 United Water Works, Inc.1,864.83 OPERATIONS WORK MATERIAL 74371 05/28/2019 UNUM Life Insurance Co. of America 4,208.50 LIFE, AD&D, STD & LTD - MAY 2019 74306 05/28/2019 VALERIE TRAHANOVSKYY 1,403.78 CUSTOMER REFUND 74373 05/28/2019 Vincor Construction, Inc.98,972.50 J19-28 FAIRMONT BPS - HARDSCAPE & LANDSCAPE IMPROVEMENTS 74374 05/28/2019 Westside Building Material 399.36 TOOLS & EQUIPMENT 74314 05/28/2019 WILLIAM HARR 38.56 CUSTOMER REFUND 74316 05/28/2019 XIAOWEI LI 85.27 CUSTOMER REFUND 74375 05/28/2019 YO Fire 295.41 OPERATIONS WORK MATERIAL 74313 05/28/2019 YQUE ENTERPRISES LLC 313.90 CUSTOMER REFUND 74311 05/28/2019 ZIPPER ENTERPRISES 450.00 CUSTOMER REFUND 607,267.20 ITEM NO. 7.2 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Prepared By:Richard Cabadas, Accounting Assistant I Subject:Directors' and General Manager Fees and Expenses Report for Third Quarter of Fiscal Year 2019 SUMMARY: Presented are the Third Quarter Directors' and General Manager Fees and Expenses Report for FY19. STAFF RECOMMENDATION: That the Board of Directors receive and file the Directors' and General Manager Fees and Expenses Report for Third Quarter of FY19. ATTACHMENTS: Name:Description:Type: Travel___Expense_Report.pdf Travel Expense Backup Material BOD___GM_Qtr_Summary.pdf Quarterly Summary Backup Material BOD___GM_YTD_FY_19.pdf Year to Date Backup Material GL Trip Trip Trip Event/ Director Date Date Name Location Meals Lodging Travel Conf. Fee Misc.Total trip Total Hawkins 1/29/19 1/4/19 WACO Fountain Valley, CA - - 30 - - 30 - 30$ Miller 1/11/19 1/16/19 OCWA Luncheon Irvine, CA - - - 30 - 30 2/13/19 1/29/19 MET meeting Anaheim, CA - - 19 - - 19 2/27/19 2/01-28/19 WACO, MWDOC, OCWA & Water Utility Workshop Various Locations - - 127 - - 127 3/20/19 2/20/19 OCWA Luncheon Irvine, CA - - - 30 - 30 3/20/19 2/21/19 MWDOC Water Policy Costa Mesa, CA - - - 90 - 90 3/20/19 3/20/19 OCWA Luncheon Irvine, CA - - - 45 - 45 - 341$ Hall - - - - - - - -$ Nederhood 1/11/19 1/10/19 Association of California Cities - Orance County Anaheim, CA - - - 45 - 45 1/11/19 1/31/19 ISDOC Luncheon Fountain Valley, CA - - 20 17 - 37 1/11/19 12/12-14/18 CRWUA Conference Las Vegas, NV 36 - 172 - - 208 2/26/19 2/20/19 OCWA Luncheon Irvine, CA - - - 45 - 45 2/27/19 2/27-3/01/19 UWI Conference Palm Springs, CA - (188) - - - (188) 3/27/19 3/01-31/19 ISDOC, OC Water Assoc. & Santa Ana Watershed seminar Various Locations - - 58 - - 58 - 204$ Jones 1/11/19 1/31/19 ISDOC Luncheon Fountain Valley, CA - - - 17 - 17 1/11/19 12/12-14/18 CRWUA Conference Las Vegas, NV 14 237 65 - - 316 1/28/19 1/10/19 OCWA Luncheon Irvine, CA - - - 45 - 45 1/29/19 1/01-31/19 MWDOC, WACO, OCWA, OCWD & ISDOC Various Locations - - 225 - - 225 1/29/19 1/28-29/19 GRAC Conference San Diego, CA - 135 113 - - 248 2/20/19 2/05-06/19 Water Tax Hearing Sacramento, CA 45 361 485 - - 891 2/27/19 2/27-3/01/19 UWI Conference Palm Springs, CA 36 224 96 - - 355 3/20/19 2/21/19 MWDOC Water Policy Costa Mesa, CA - - - 90 - 90 3/20/19 3/20/19 OCWA Luncheon Irvine, CA - - - 45 - 45 3/20/19 3/28/19 ISDOC Luncheon Fountain Valley, CA - - - 17 - 17 3/20/19 6/09-12/19 AWWA CA-NV Conference Denver, CO - - 334 850 - 1,184 3/27/19 1/28/19 San Diego Chapter Meeting San Diego, CA - - - 40 - 40 3/27/19 2/01-28/19 WACO & MWDOC Various Locations - - 25 - - 25 3/27/19 3/01-31/19 SAWPA, MWDOC, OCWD & Santa Ana Watershed Seminar Various Locations - - 132 - - 132 - 3,630$ Total Director's 131$ 769$ 1,898$ 1,406$ -$ 4,204$ 4,204$ DIRECTOR'S & GENERAL MANAGER'S RECAP OF TRAVEL/CONFERENCE EXPENSES THIRD QUARTER OF FY 19 JANUARY - MARCH 2019 General Manager Marcantonio 1/11/19 12/12-14/18 CRWUA Conference Las Vegas, NV 8$ 203$ 285$ -$ 5$ 501$ 1/14/19 12/01-30/18 MWDOC & Dir. Lunch meet Various Locations - - 47 - - 47 2/13/19 1/01-31/19 OCWD, MWDOC & ISDOC Fountain Valley - - 63 - - 63 2/20/19 08/06-08/19 Tri-Sate Seminar Las Vegas, NV - 79 - - - 79 2/20/19 2/05-06/19 Water Tax Hearing Sacramento, CA 55 376 467 - - 898 2/20/19 5/07-10/19 ACWA Spring Conference Monterey, CA - - - 725 - 725 3/20/19 3/20/19 OCWA Luncheon Irvine, CA - - - 30 - 30 3/20/19 3/28/19 ISDOC Luncheon Fountain Valley - - - 17 - 17 3/20/19 6/09-12/19 AWWA CA-NV Conference Denver, CO - - 334 850 - 1,184 3/27/19 2/01-28/19 OCWD, Serrano Water, Stakeholder workshop Various Locations - - 64 - - 64 3/27/19 3/01-31/19 OCWD, MWDOC & ISDOC Various Locations - - 109 - - 109 3/27/19 3/04-05/19 SWITCH Facility Visit Las Vegas, NV 29 200 268 - - 498 Total GM 93$ 858$ 1,637$ 1,622$ 5$ 4,216$ 4,216$ Total Director's & GM 224$ 1,627$ 3,535$ 3,028$ 5$ 8,420$ 8,420$ YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES 3RD QUARTER REPORT FROM 01-01-2019 TO 03-31-2019 FY 19 HAWKINS MILLER HALL NEDERHOOD JONES SUB-TOTAL MARCANTONIO TOTAL REGULAR MEETINGS ATTENDED 5 5 6 6 6 28 COMMITTEE MEETINGS ATTENDED 2 1 0 0 3 6 SPECIAL MEETINGS ATTENDED 0 0 0 0 0 0 OTHER MEETINGS ATTENDED 8 14 0 4 21 47 TOTAL MEETINGS ATTENDED QTD 15 20 6 10 30 81 81 DIRECTOR FEES QTD $2,250 $3,000 $900 $1,500 $4,500 $12,150 $12,150 MEETING FEES BUDGET QTD $4,500 $4,500 $4,500 $4,500 $4,500 $22,500 $22,500 TRAVEL & CONF. EXPENSES QTD $30 $341 $0 $204 $3,630 $4,205 $4,205 TRAVEL & CONF. BUDGET QTD $2,160 $2,160 $2,160 $2,160 $2,160 $10,800 $10,800 DIR.FEES AND EXPENSES QTD $2,280 $3,341 $900 $1,704 $8,130 $16,355 $16,355 FEES AND EXPENSES BUDGET QTD $6,660 $6,660 $6,660 $6,660 $6,660 $33,300 $33,300 GEN MGR EXPENSES QTD $4,216 $4,216 GEN MGR TRAVEL/CONF. BUDGET QTD $5,233 $5,233 TOTAL FEES & EXPENSES QTD $2,280 $3,341 $900 $1,704 $8,130 $16,355 $4,216 $20,571 TOTAL FEES & EXPENSES BUDGET QTD $6,660 $6,660 $6,660 $6,660 $6,660 $33,300 $5,233 $38,533 YORBA LINDA WATER DISTRICT DIRECTORS AND GENERAL MANAGER FEES AND EXPENSES YEAR-TO-DATE REPORT FROM 07-01-2018 TO 03-31-2019 FY 19 HAWKINS MILLER HALL NEDERHOOD JONES SUB-TOTAL MARCANTONIO TOTAL REGULAR MEETINGS ATTENDED 13 11 15 14 15 68 COMMITTEE MEETINGS ATTENDED 2 2 0 3 4 11 SPECIAL MEETINGS ATTENDED 1 1 1 1 2 6 OTHER MEETINGS ATTENDED 22 52 0 45 68 187 TOTAL MEETINGS ATTENDED QTD 38 66 16 63 89 272 272 DIRECTOR FEES QTD $5,700 $9,900 $2,400 $9,450 $13,350 $40,800 $40,800 MEETING FEES BUDGET QTD $13,500 $13,500 $13,500 $13,500 $13,500 $67,500 $67,500 TRAVEL & CONF. EXPENSES QTD $229 $2,271 $0 $7,679 $10,393 $20,572 $20,572 TRAVEL & CONF. BUDGET QTD $6,480 $6,480 $6,480 $6,480 $6,480 $32,400 $32,400 DIR.FEES AND EXPENSES QTD $5,929 $12,171 $2,400 $17,129 $23,743 $61,372 $61,372 FEES AND EXPENSES BUDGET QTD $19,980 $19,980 $19,980 $19,980 $19,980 $99,900 $99,900 GEN MGR EXPENSES QTD $8,044 $8,044 GEN MGR TRAVEL/CONF. BUDGET QTD $15,700 $15,700 TOTAL FEES & EXPENSES QTD $5,929 $12,171 $2,400 $17,129 $23,743 $61,372 $8,044 $69,416 TOTAL FEES & EXPENSES BUDGET QTD $19,980 $19,980 $19,980 $19,980 $19,980 $99,900 $15,700 $115,600 ITEM NO. 7.3 AGENDA REPORT Meeting Date: May 28, 2019 Budgeted:N/A To:Board of Directors Funding Source:Developer Funded From:Marc Marcantonio, General Manager Account No:1-2600 Job No:201924 Presented By:Rosanne Weston, Engineering Manager Dept:Engineering Reviewed by Legal:N/A Prepared By:Ariel Bacani, Engineering Technician II CEQA Compliance:N/A Subject:Terms and Conditions for Water Service with LPPYL, Inc., 5091 Richfield Rd Ste A SUMMARY: LPPYL, Inc., dba Lamppost Pizza, proposes to relocate its restaurant business to the Richfield Plaza shopping center at 5091 Richfield Rd., in the City of Yorba Linda, as shown in the attached exhibit. STAFF RECOMMENDATION: That the Board of Directors approve the Terms and Conditions for Water Service with LPPYL, Inc., 5091 Richfield Rd Ste A, Job No. 201924. DISCUSSION: The District has an existing Zone 2, 6-inch water pipeline within the Richfield Plaza shopping center that is adequate in size and of sufficient pressure to serve the project. The applicant is conditioned by the Orange County Fire Authority to provide a private fire suppression system for the new unit. The District requires a double check detector assembly and isolation valve to separate the private system from the public water system, as depicted in the attached exhibit. The applicant is required by the property owner to install a separate water service for the business. The proposed project is located within Drainage Area "2" of the District's Sewer Service Area. The shopping center has an existing 4-inch sewer lateral connection. The applicant shall provide flow calculations to determine if the sewer lateral is adequately sized for the expected wastewater generation. ATTACHMENTS: Name:Description:Type: 201924_T_C.docx Terms and Conditions Agreement 201924_Exhibit.pdf Exhibit Exhibit Date: MAY 28, 2019 YORBA LINDA WATER DISTRICT TERMS AND CONDITIONS FOR WATER SERVICE NAME OF APPLICANT: LPPYL, INC. (DBA LAMPPOST PIZZA) LOCATION OF PROJECT: 5091 RICHFIELD ROAD, SUITE A, YORBA LINDA TRACT NUMBER: N/A JOB NUMBER: 201924 SEWER: N/A LOT(S): N/A The applicant will be required to complete to the satisfaction of the District the following items that have an “X” following the number. 1) X The applicant shall provide the District with a copy of the Grant Deed or Title Report of the property to be served. 2) X The applicant shall include information deemed necessary by the District in the event the applicant is required to file a Department of Real Estate Tax Disclosure statement. 3) X The applicant shall submit two (2) sets of the improvement plans to the District for plan check processing. a) Improvement Plans b) Grading Plans c) Tract, Parcel or Vesting Map d) Landscaping Plans 4) X Improvement Plans submitted for plan check shall comply with the submittal requirements established by the YLWD Engineering Department. 5) X The applicant shall dedicate or obtain all easements deemed necessary by the District in accordance with the Rules and Regulations of the District. All easement documents shall be prepared under the supervision of and stamped by a Professional Land Surveyor or a Registered Civil Engineer (licensed prior to January 1, 1982) licensed to practice in the State of California. 6) X The applicant shall provide the District with a copy of the Recorded Tract/Parcel Map(s) or Easement Documents illustrating all District easements required by Term and Condition No. 7, prior to requesting occupancy releases. 7) The applicant shall prepare and process all easements to be quitclaimed by the District in accordance with the Rules and Regulations of the District. Page 2 of 5 NAME OF APPLICANT: LPPYL, INC. (DBA LAMPPOST PIZZA) LOCATION OF PROJECT: 5091 RICHFIELD ROAD, SUITE A, YORBA LINDA 8) X The applicant shall furnish the District with a 24-hour emergency telephone number prior to the District’s approval of the construction plans. 9) X The applicant shall notify the District 48 hours prior to initiating any work related to required or proposed improvements. 10) X The applicant shall complete a Temporary Construction Meter Permit application for all water to be used in construction work and all water used under such permit shall be taken from the approved construction meter. 11) X The applicant shall provide, per the District specifications, the "As Built" AutoCAD file (version 2016 or earlier) of the Water and/or Sewer facilities. 12) X The applicant shall complete an Application to and Agreement with the Yorba Linda Water District for Water Service. 13) X The applicant shall pay all of the water fees as required by the Rules and Regulations for Water Service of the District. 14) X The applicant shall pay meter fees associated with the installation of water meters for this project. 15) X The applicant shall comply with the Rules and Regulations for Water Service of the Yorba Linda Water District. 16) The applicant shall provide the District with a set of plans stamped and approved by the Orange County Fire Authority, or fire agency having jurisdiction, that identifies approved fire hydrant locations. Such approved plan must be submitted to the District before staff will initiate a District plan check for water improvements. 17) X The applicant shall have all water facilities designed in accordance with the District's Water Facilities Plan and the Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 18) The applicant’s engineer shall provide a computer hydraulic analysis report to confirm that the District’s existing water system can accommodate the project. 19) The applicant’s water facilities (on-site) shall be District owned and maintained. 20) X The applicant shall be required to conduct flow tests at their cost in the event the Orange County Fire Authority requires a flow test. A District representative shall be present to witness the flow test. Page 3 of 5 NAME OF APPLICANT: LPPYL, INC. (DBA LAMPPOST PIZZA) LOCATION OF PROJECT: 5091 RICHFIELD ROAD, SUITE A, YORBA LINDA 21) X The applicant shall comply with all additional District requirements, relative to the fire protection system, fire hydrant construction and fire hydrant locations. 22) The applicant shall install water Sampling Station(s) in conformance with the District’s Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 23) X The applicant shall provide a completed Surety Bond for the water facilities prior to the District signing the Water Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed water facilities. 24) The applicant shall install the curb and gutters a minimum of one week prior to the installation of the water main and services. 25) X All existing water services that are not useable in the new plan shall be cut and plugged at the main line. 26) X The applicant shall coordinate through the District all connections of new water facilities to the existing District facilities. 27) X The applicant shall provide a written copy of the Bacteriological Report prior to occupancy releases certifying that the water meets the Health Department's requirements. 28) X The applicant shall adjust and raise to grade all valve covers within the limits of this project. 29) X The applicant shall install a pressure regulator in all buildings that have over 80 p.s.i. static water pressure in accordance with the appropriate building codes. 30) X The applicant shall install a District approved backflow device in connection with any private fire suppression sprinkler facilities that may be required by the Orange County Fire Authority or fire agency having jurisdiction. 31) X The applicant shall install a reduced pressure principle backflow prevention device on all commercial buildings and landscape services. 32) X The applicant shall install and provide a written test report to the District for each backflow device certifying that the backflow devices are operating properly. 33) X The applicant shall install and provide a written test report to the District certifying that the double check detector assembly is operating properly prior to the double check detector assembly being turned on for service. Page 4 of 5 NAME OF APPLICANT: LPPYL, INC. (DBA LAMPPOST PIZZA) LOCATION OF PROJECT: 5091 RICHFIELD ROAD, SUITE A, YORBA LINDA 34) X The applicant shall provide an annual written test report to the District certifying that the backflow devices and fire detector assemblies are operating properly pursuant to the District’s Backflow Prevention Program and the State of California Administrative Code, Title 17, Public Health Rules and Regulations Relating to Cross-Connections. 35) The applicant shall complete a Sewer Connection Application and Permit for Sewer Service. 36) The applicant shall complete an Application to and Agreement with the Yorba Linda Water District for Sanitary Sewer Service. 37) The applicant shall comply with the Rules and Regulations for Sewer Service of the Yorba Linda Water District. 38) The applicant shall pay all of the sewer fees as required by the Rules and Regulations for Sewer Service of the District. 39) The applicant shall have all sewer facilities designed in accordance with the District's Sewer Master Plan and the Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. All design plans shall be prepared under the supervision of and stamped by a Registered Civil Engineer licensed to practice in the State of California. 40) X The applicant’s engineer shall provide sewer flow calculations to confirm that the District’s existing sewer system can accommodate the peak wastewater generation from the project. 41) The applicant shall provide a completed Surety Bond for the sewer facilities prior to the District signing the Sewer Improvement Plans. The applicant shall also provide to the District an estimate of the construction costs of the proposed sewer facilities. 42) X The applicant’s sewer facilities (on-site) shall be Privately owned and maintained. 43) The applicant shall construct a sewer main and appurtenances in conformance with the approved plans and the District’s Standard Specifications and Drawings for Construction of Domestic Water and Sewer Facilities. 44) The applicant shall adjust and raise to grade all sewer manhole covers within the limits of this project. 45) X The applicant shall install a sewer backflow prevention valve on all sewer service connections in which the pad elevations of the property being served is lower than the rim elevation of the upstream manhole. Installation of the backflow device shall comply with all requirements of the Building and Plumbing Codes of the appropriate agency having jurisdiction. Page 5 of 5 NAME OF APPLICANT: LPPYL, INC. (DBA LAMPPOST PIZZA) LOCATION OF PROJECT: 5091 RICHFIELD ROAD, SUITE A, YORBA LINDA 46) The applicant shall submit a video inspection report of their sewer project in DVD format. The video of the sewer facilities shall be conducted in the presence of the District inspector, which will include stationing locations of manholes, cleanouts, wyes, laterals, backflow devices and appurtenances. (END OF STANDARD TERMS AND CONDITIONS) PROJECT SPECIFIC TERMS AND CONDITIONS 47) X The applicant shall install one fire service line and one water service and meter, per approved plans and District Specifications. I hereby certify that the foregoing Terms and Conditions were approved at the May 28, 2019 Regular Meeting of the Board of Directors of the Yorba Linda Water District. The approved Terms and Conditions shall become void six (6) months from the approval date if a formal Application To and Agreement with the Yorba Linda Water District for Water Service is not executed for the project under consideration. Marc Marcantonio, General Manager EX. 8"SEWER PROPOSED ISOLATION VALVE _ _ _ _ — — PROPOSED DOUBLE CHECK DETECTOR ASSEMBLY EX.WATER SERVICE PROP.WATER SERVICE_ _ _ _ _ _ w �EX.6"WATERLINE DT _ _ PROPERTYLINE L vv Vim= - - VT- W —ss— — I II I + FFF] Li EiI Y EX.4"SEWER I J LATERAL o Iw LII ,- - - - - - - -- / LAMPPOST PIZZA I� I I YORBA LINDA BLVD. i Q °II I El z Iw LQ F-1 - a J o Q [4, - - - - - - \ I w I 0 PROJECT" i _ \ I In SITE� RFL6IJE N WII w I � � 1� r - � J � v-��� w r� WI LL -°� LL _I U ,SII I ' Z 211 -� Y � 1 o j j wll I VICINITY MAP w - - - - - - - I �I � } o L - - - - - - W Lu L - - - - - - Jin i i III I I PROPERTYLINE LOCATION MAP PREPARED BY: EXHIBIT SCALE: N.T.S. YORBA LINDA WATER DISTRICT PROPOSED WATER SERVICE DATE: El 1717 E. MIRALOMA AVENUE FOR 05/28/2019 PLACENTIA, CALIFORNIA 92870 5091 RICHFIELD RD., STE. A FILENAME: (714) 701-3100 LPPYL, INC. (DBA LAMPPOST PIZZA) 201924 ITEM NO. 7.4 AGENDA REPORT Meeting Date: May 28, 2019 Budgeted:Yes Total Budget:$600,000 To:Board of Directors Cost Estimate:$600,000 Funding Source:All Water Funds From:Marc Marcantonio, General Manager Job No:J2018-03 Presented By:Rosanne Weston, Engineering Manager Dept:Engineering Reviewed by Legal:N/A Prepared By:Danielle Logsdon, Senior Engineer CEQA Compliance:Exempt Subject:Award of Construction Contract for Camino Verde and Mickel Lane Waterline Improvements SUMMARY: On May 9, 2019, bids were received from six contractors for Camino Verde and Mickel Lane Waterline Improvements. Following review of the bids, staff recommends award to the low- bidder, Cedro Construction, Inc. for $576,178.90. STAFF RECOMMENDATION: That the Board of Directors award the Construction Contract for Camino Verde and Mickel Lane Waterline Improvements to Cedro Construction, Inc. for $576,178.90, Job No. J2018-03. DISCUSSION: As part of the District's Capital Improvement Plan, it was determined that the waterlines in the vicinity of Camino Verde and Mickel Lane were in need of improvements due to the age of the pipe and fire flow deficiencies. District staff completed the design plans and project specifications for the improvements. On April 12, 2019, the District solicited bids for Camino Verde and Mickel Lane Waterline Improvements. On May 9, 2019, sealed bids were received from six contractors. District staff provided an Engineer's Estimate of $600,000. The six bids ranged from a low of $576,178.90 to a high of $1,199,570.00, as shown in the summary below. No. Contractor Total Bid Amount 1 Cedro Construction, Inc. $576,178.90 2 GCI Construction, Inc. $659,595.00 3 Creative Home dba CHI Construction $673,728.00 The bid tabulation and bid documents from the low-bidder, Cedro Construction, Inc., were reviewed and confirmed by District staff and found to be responsive and fully in order. Accordingly, staff recommends award to Cedro Construction, Inc. 4 J A Salazar Construction & Supply Corp. $809,864.00 5 Kana Pipeline, Inc. $993,883.00 6 Colich & Sons L.P. $1,199,570.00 ITEM NO. 7.5 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Kaden Young, Management Analyst Subject:Water Rates for Fiscal Year 2020 STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 2019-XX ratifying action taken to adjust water rates effective July 1, 2019 and implement any potential commodity adjustment by October 1, 2019, and rescinding Resolution No. 18-32. DISCUSSION: In preparation of developing the District's proposed Operating Budget for Fiscal Year 2020, staff projected operating revenues and expenses to determine the resulting year end net positions of each fiscal year. In developing the proposed budget, the process ensured that the goals and objectives set in the District's Strategic Plan were accomplished. Such objectives include securing a year end covenant ratio of 2.25, retaining cash on hand of 365+ days, being fiscal stewards of reserve balances, and maintaining a bond rating of AA or higher. To ensure these objectives are met, staff is charged with analyzing the District's rates and recommending any necessary rate adjustments that promotes fiscal strength and stability. At the April 23, 2019 Budget Workshop, which was an open workshop for all public to attend, staff presented a proposed Operating Budget that included a rate adjustment to the monthly meter charge (i.e. a $3.25 adjustment to the 1" meter charge, $35.74 a month for a 1" meter connection) with an effective date of January 1, 2020. At that time, staff was directed by the Board of Directors to prepare an analysis of results from various recommended scenarios to determine a recommendation that would yield a fiscally sound and stable budget for the next two years, while also meeting the set goals and objectives within the District's adopted Strategic Plan. At the May 14, 2019 Regular Board meeting, staff presented projected potential pass though adjustments to the commodity rate for the next five years and paired those with five separate scenarios of rate adjustments to the monthly service charges. The scenarios included a 5%, 9%, and 10% rate adjustment effective in July or January of each year. The Board voted 3-1-0-1 to approve and adopt a 9% rate adjustment to the monthly service charge (i.e., $2.92 adjustment per month to a 1" meter), with an effective date of July 1, 2019, and any potential commodity rate adjustment by October 1, 2019. The approved and adopted rate adjustments to the monthly service charge, effective July 1, 2019 yielded the results listed below: These rates do not exceed those listed in the 2015 Water Rate Study and the adjustments are in accordance with Proposition 218. Staff has prepared the attached resolution in order to ratify the Board of Directors' actions taken at the May 14, 2019 meeting. Meter Sizes Current Rate New Rate Net Monthly Adjustment 5/8” and ¾” $ 19.45 $ 21.20 $ 1.75 1”$ 32.49 $ 35.41 $ 2.92 1 ½”$ 64.78 $ 70.61 $ 5.83 2” $103.69 $113.02 $ 9.33 3”$227.04 $247.47 $20.43 4”$408.55 $445.32 $36.77 6”$907.95 $989.67 $81.72 ATTACHMENTS: Name:Description:Type: Resolution_No._2019-XX_- _Adjusting_Water_Rates.docx Resolution Resolution Resolution No. 2019-XX Adjusting Water Rates Effective July 1, 2019 and Rescinding Resolution No. 18-32 1 RESOLUTION NO. 2019-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT RATIFYING ACTION TAKEN TO ADJUST WATER RATES EFFECTIVE JULY 1, 2019 AND IMPLEMENT ANY POTENTIAL COMMODITY ADJUSTMENT BY OCTOBER 1, 2019, AND RESCINDING RESOLUTION NO. 18-32 WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the Yorba Linda Water District (YLWD) is required to set water rates at a level which will yield an amount of revenue sufficient to pay for operating expenses, provide for repairs and depreciation of works, and pay the principal and interest on any bonded debt; and WHEREAS, on July 16, 2015 and August 31, 2015, the Board of Directors considered the 2015 Water and Sewer Rate Study Report (“Rate Study”) and determined that the schedule of water rate increases described in the Rate Study is necessary and sufficient to cover, without exceeding, the cost to provide water service to each customer connection; and WHEREAS, pursuant to, and in compliance with, Proposition 218 (California Constitution art. XIII D), the District on July 31, 2015 mailed a notice of schedule of water and sewer rate increases (“Prop 218 Notice”) to all property owners within the District’s service area which included proposed water rates for Fiscal Year 2016 (i.e. “FY16”), FY17, FY18, FY19, and FY20; and WHEREAS, on September 17, 2015, and in accordance with article XIII D, the Board of Directors held a public hearing regarding its Prop 218 Notice, and adopted Resolution No. 15-22, which established water rates, effective October 1, 2015; and WHEREAS, the Board of Directors has since rescinded Resolution No. 15-22 and adopted and rescinded Resolution No. 16-10; and WHEREAS, rescinded Resolution No. 16-10 repeated the Board of Directors’ findings, determinations, and resolutions in Sections 2 - 5 of Resolution No. 15-22, which are not repeated in this Resolution to avoid any confusion regarding the findings, determinations, and resolutions to adjust the water rates in this Resolution; and WHEREAS, on November 13, 2018, the Board of Directors adopted Resolution No. 18- 32, which adjusted water rates that took effect on January 1, 2019; and Resolution No. 2019-XX Adjusting Water Rates Effective July 1, 2019 and Rescinding Resolution No. 18-32 2 WHEREAS, in FY19, following substantial review and analysis, which included Board workshops, District staff prepared a cost of service analysis; and WHEREAS, on May 14, 2019, in accordance with the cost of service analysis and Water Code Section 31007, the Board of Directors adopted an adjustment to the Monthly Service Charge effective July 1, 2019 and any potential adjustment to the Water Usage Charge by October 1, 2019 within the confines of the District’s water rate schedule published in its Prop 218 Notice; and WHEREAS, the Board of Directors desires to ratify these actions in the form of this Resolution. 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. 18-32 is hereby rescinded effective July 1, 2019. Section 3. Water rates and customer connection charges for service defined in Section 3.4 of the Rules and Regulations With Regard to the Rendition of Water Service of the Yorba Linda Water District are hereby set forth as follows and will take effect on July 1, 2019: For All Potable Water Service: All Water Usage shall be charged at $2.80 / 100 Cu. Ft. (Does Not Include an additional Pass- through Charge since Resolution No. 18-32) Monthly Service Charge for: 5/8” and 3/4” Meters $ 21.20 1” Meters $ 35.41 1 1/2” Meters $ 70.61 2” Meters $ 113.02 3” Meters $ 247.47 4” Meters $ 445.32 Resolution No. 2019-XX Adjusting Water Rates Effective July 1, 2019 and Rescinding Resolution No. 18-32 3 6” Meters $ 989.67 Section 4. Additional rates and fees for service are as follows: The charge for Permanent Untreated Water Service as defined in Section 3.4.3 of the Rules and Regulations for Water Service shall be as follows: The current Metropolitan Water District of Southern California (MWD) Untreated Full rate, plus charges by the Municipal Water District of Orange County (MWDOC), plus any other fees, charges or penalties as may be imposed by MWD and/or MWDOC, plus $13 per acre foot. PASSED AND ADOPTED this 28th day of May 2019, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Brooke Jones, 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 ITEM NO. 7.6 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Kelly McCann, Senior Accountant Subject:Water Development and Customer Service Fees STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 2019-XX adopting Water Development and Customer Service Fees and rescinding Resolution No. 18-19. DISCUSSION: The current Water Development and Customer Service Fees were adopted via Resolution No. 18- 19 in June 2018. 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 related service(s). Included in the cost of service are the projected staff, equipment and material costs utilized to perform the service(s) required. Staff costs include the current hourly rate and benefit costs of the employee(s) providing the service. Staff compared the development and customer service fees with those of other local agencies. Attached is Resolution No. 2019-XX with the updated Water Development and Customer Service Fees. STRATEGIC PLAN: G2 3D - Review and adopt an appropriate fee schedule on an annual basis. PRIOR RELEVANT BOARD ACTION(S): On June 26, 2018 the Board approved Resolution No. 18-19 adopting Water Development and Customer Service Fees. ATTACHMENTS: Name:Description:Type: Resolution_No._2019-XX_- _Water_Dev___Cust_Svc_Fees.docx Resolution Resolution Resolution No. 2019-XX Adopting Water Development and Customer Service Fees 1 RESOLUTION NO. 2019-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING WATER DEVELOPMENT AND CUSTOMER SERVICE FEES AND RESCINDING RESOLUTION NO. 18-19 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 Resolutions to adjust 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 Services shall be as follows: A. New Account Setup Fee $30.00 per Occurrence B. Late Payment Fee 10% of Outstanding Charges C. Notice of Discontinuance $15.00 per Occurrence D. Shut-Off Duty to Non-Payment $40.00 per Occurrence E. Reestablish Service $40.00 per Occurrence F. Callout After Hours $210.00 per Occurrence G. Tampered Lock – Residential $80.00 per Occurrence H. Tampered Lock – Commercial $120.00 per Occurrence I. Meter Removal $110.00 per Occurrence J. Meter Replacement (Due to Meter Removal) $110.00 per Occurrence (Plus additional labor & material due to customer tampering) K. Return Payment Fee $30.00 per Occurrence Resolution No. 2019-XX Adopting Water Development and Customer Service Fees 2 L. Stop Payment of District Check $25.00 per Occurrence M. Water Meter Testing Fee $110.00 (plus cost of independent laboratory testing if applicable) N. Residential Customer Deposit (determined by a 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 ½ Inch Meter & Below $450.00 per Meter 2 Inch Meter $750.00 per Meter 3 Inch Meter $1,125.00 per Meter 4 Inch and Larger Meter $2,040.00 per Meter Section 2. Fees identified in Section 3 and 7 of the Rules and Regulations for Water Services shall be as follows: A. Construction Meters (temporary connection at location approved by District Staff): Deposit $1,970.00 per Meter New Account Setup Fee $30.00 per Occurrence Meter Use Fee $5.40 per Day Move to a New Location $105.00 per Occurrence Backflow Certification $85.00 per Occurrence An Approved Backflow Prevention Device to be provided by Customer at time of Meter Installation B. New Meter Connection Fee (excludes Meter Box, Meter Lid, and Customer Service Shut-Off Value): 3/4 Inch Meter $675.00 per Meter 1 Inch Meter $700.00 per Meter 1 1/2 Inch Meter $1,220.00 per Meter 2 Inch Meter $1,555.00 per Meter Meter(s) larger than 2 Inch Actual Costs Meters(s) within Traffic Area Actual Costs C. Temporary Water Services 2 times the current potable water rate per 100 cubic feet D. Change of Meter Size Actual Costs Resolution No. 2019-XX Adopting Water Development and Customer Service Fees 3 E. Temporary Untreated Water Metropolitan Water District Untreated Rate, plus other MWDOC fees, plus $13.00 per acre foot. F. Permanent Untreated Water Metropolitan Water District Untreated Rate, plus other MWDOC fees, plus $13.00 per acre foot. G. Backflow Device Monitoring Fee $2.50 per Month H. Jumper Fees (Phased Out) $13.50 per Month (Will be phased out.) I. Water Deposit (Plan Check, Inspection, GIS Data Conversion, Administrative, and Records/Billing Services Costs) - Based on the number of Connections: 1-5 Connections $6,775.00 Deposit 6-10 Connections $10,830.00 Deposit 11-20 Connections $15,820.00 Deposit 21-30 Connections $18,960.00 Deposit 31-40 Connections $27,165.00 Deposit 41-50 Connections $31,230.00 Deposit 51-99 Connections $39,025.00 Deposit 100 and higher number of Connections $52,525.00 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 K. Private Fire Service: 4 Inch $16.00 per Month 6 Inch $35.00 per Month 8 Inch $59.00 per Month 10 Inch $94.00 per Month Section 3. Penalties identified in Section 4 and 6 of the Rules and Regulations for Water Services shall be as follows: Resolution No. 2019-XX Adopting Water Development and Customer Service Fees 4 A. Meter Tampering Penalties: 1st Violation Actual Costs of Inspection, Repair, and Estimated Usage 2nd Violation Actual Costs of Inspection, Repair, Est. Usage, and $500 3rd Violation Actual Costs of Inspection, Repair, Est. Usage, and $1,000 B. Hydrant Tampering Penalties: 1st Violation Actual Costs of Inspection, Repair, and Estimated Usage 2nd Violation Actual Costs of Inspection, Repair, Est. Usage, and $500 3rd Violation Actual Costs of Inspection, Repair, Est. Usage, and $1,000 C. Obstructing District Facilities Actual Costs of Removing Obstruction (Applicable if 24 hours has lapsed from proper district notification of obstruction.) Section 4. The fees adopted herein shall take effect on July 1, 2019 and Resolution No. 18-19 is hereby rescinded on July 1, 2019. PASSED AND ADOPTED this 28th day of May 2019 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Brooke Jones, 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 Law LLP ITEM NO. 7.7 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Kelly McCann, Senior Accountant Subject:Sewer Development and Customer Service Fees STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 2019-XX adopting Sewer Development and Customer Service Fees and rescinding Resolution No. 18-20. DISCUSSION: The current Sewer Development and Customer Service Fees were adopted via Resolution No. 18- 20 in June 2018. 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 sewer related service(s). Included in the cost of service are the projected staff, equipment and material costs utilized to perform the service(s) required. Staff costs include the current hourly rate and benefit costs of the employee(s) providing the service. Staff compared the development and customer service fees with those of other local agencies. Attached is Resolution No. 19-XX with the updated Sewer Development and Customer Service Fees. Staff recommends that the Board of Directors adopt Resolution No. 2019-XX Adopting Sewer Development and Customer Service Fees for Fiscal Year 2020. STRATEGIC PLAN: G2 3D - Review and adopt an appropriate fee schedule on an annual basis. PRIOR RELEVANT BOARD ACTION(S): On June 26, 2018 the Board approved Resolution No. 18-20 adopting the current Sewer Development and Customer Service Fees. ATTACHMENTS: Name:Description:Type: Resolution_No._2019-XX_- _Sewer_Dev___Cust_Svc_Fees.docx Resolution Resolution Resolution No. 2019-XX Adopting Sewer Development and Customer Service Fees 1 RESOLUTION NO. 2019-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING SEWER DEVELOPMENT AND CUSTOMER SERVICE FEES AND RESCINDING RESOLUTION NO. 18-20 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 Resolutions to adjust the Sewer Development 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. Service Charge: Drainage Area 1 $1,660.00 per Gross Acre Drainage Area 2 $1,450.00 per Gross Acre B. Frontage Charge: $102.00 per Linear Foot (But not less than $5,200.00 per Connection) C. Sewer Deposit (Plan Check, Inspection, GIS Data Conversion, Administrative, and Records/Billing Services Costs) - Based on the number of Connections: 1-5 Connections $ 5,805.00 Deposit 6-10 Connections $ 7,408.00 Deposit 11-20 Connections $10,145.00 Deposit 21-30 Connections $12,685.00 Deposit 31-40 Connections $17,430.00 Deposit 41-50 Connections $20,735.00 Deposit 51-99 Connections $32,770.00 Deposit 100 and Higher Number of Connections $49,835.00 Deposit Resolution No. 2019-XX Adopting Sewer Development and Customer Service Fees 2 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. D. Single Service Fee $1,135.00 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 Water Services shall be as follows: A. Sewer Tampering Penalties: 1st Violation Actual Costs of Inspection and Repair 2nd Violation Actual Costs of Inspection, Repair, and $500 3rd Violation Actual Costs of Inspection, Repair, and $1,000 B. Obstructing District Facilities Actual Costs of Removing Obstruction (Applicable if 24 hours has lapsed from proper district notification of obstruction.) Section 3. The fees adopted herein shall take effect on July 1, 2019 and Resolution No. 18-20 is hereby rescinded effective July 1, 2019. PASSED AND ADOPTED this 28th day of May 2019 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Brooke Jones, President Yorba Linda Water District Resolution No. 2019-XX Adopting Sewer Development and Customer Service Fees 3 ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Law LLP ITEM NO. 8.1 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Delia Lugo, Finance Manager Subject:Sewer Rates for Fiscal Year 2020 STAFF RECOMMENDATION: That the Board of Directors adopt Resolution No. 2019-XX adjusting sewer rates effective July 1, 2019 and rescinding Resolution No. 18-22. DISCUSSION: In September 2015, the Board of Directors approved the FY16-20 Water and Sewer Rate Study Report (Rate Study) prepared by Raftelis Financial Consultants, Inc. In compliance with Proposition 218, the Board held a public hearing regarding the proposed rates over the next 5 fiscal years (FY16 through FY20). Following the hearing, the Board adopted the Rate Study. As identified in Year 5 of the Rate Study, the monthly sewer service rate for FY2 will be increasing based on the customer type. For example, single family residential sewer rate will increase by $0.60 (from $7.50 to $8.10) per billing period. Staff has prepared Resolution No. 2019-XX, whereupon adoption will implement the proposed sewer rates as of July 1, 2019. ATTACHMENTS: Name:Description:Type: Resolution_No._2019-XX_- _Adjusting_Sewer_Rates.docx Resolution Resolution Resolution No. 2019-XX Setting Sewer Rates Effective July 1, 2019 and Rescinding Resolution No. 18-22 1 RESOLUTION NO. 2019-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADJUSTING SEWER RATES EFFECTIVE JULY 1, 2019 AND RESCINDING RESOLUTION NO. 18-22 WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the Yorba Linda Water District is required to set sewer rates at a level which will yield an amount of revenue sufficient to pay for operating expenses and provide for repairs and depreciation of works; and WHEREAS, on July 16, 2015 and August 31, 2015, the Board of Directors considered the 2015 Water and Sewer Rate Study Report (“Rate Study”) and determined that the schedule of sewer rate increases described in the Rate Study is necessary and sufficient to cover, without exceeding, the cost to provide sewer service to each customer connection; and WHEREAS, pursuant to and in compliance with Proposition 218 (California Constitution art. XIII D), the District on July 31, 2015 mailed a notice of schedule of water and sewer rate increases (“Prop 218 Notice”) to all property owners within the District’s service area which included the proposed sewer rates for Fiscal Year 2016 (i.e. “FY16”), FY17, FY18, FY19, and FY20; and WHEREAS, on September 17, 2015, and in accordance with article XIII D, the Board of Directors held a public hearing regarding its Prop 218 Notice, and adopted Resolution No. 15-23, which established sewer rates, effective October 1, 2015; and WHEREAS, the Board of Directors has since rescinded Resolution No. 15-23 and adopted and rescinded Resolution Nos. 16-11 and 17-19; and WHEREAS, the aforementioned rescinded Resolutions repeated the Board of Directors’ findings, determinations, and resolutions in Sections 2 - 5 of Resolution No. 15-23, which are not repeated in this Resolution to avoid any confusion regarding the findings, determinations, and resolutions to adjust the sewer rates in this Resolution; and WHEREAS, on June 26, 2018, the Board of Directors adopted Resolution No. 18-22, which adjusted sewer rates that took effect on August 1, 2018; and Resolution No. 2019-XX Setting Sewer Rates Effective July 1, 2019 and Rescinding Resolution No. 18-22 2 WHEREAS, in FY19, following substantial review and analysis, which included Board workshops, District staff prepared a cost of service analysis; and WHEREAS, in accordance with the cost of service analysis and Water Code Section 31007, the Board of Directors desires to adjust District sewer rates for FY20 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. 18-22 is hereby rescinded effective July 1, 2019. Section 3. Sewer rates and customer connection charges for service defined in Sections 6.10 and 6.11 of the Rules and Regulations for Sewer Service with regard to the Rendition of Sanitary Sewer Service of the Yorba Linda Water District are hereby adjusted as follows and will take effect on July 1, 2019: A. Residential: 1. Residential - individually metered $8.10 per month 2. Residential - master metered $7.62 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: $8.10 per month. b. All water consumption in excess of 700 cubic feet per month: $0.52 per 100 cubic feet. 2. Alternatively, for customers who have a sewer meter or who can demonstrate to the District’s satisfaction that Resolution No. 2019-XX Setting Sewer Rates Effective July 1, 2019 and Rescinding Resolution No. 18-22 3 100% 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: $8.10 per month b. All water consumption in in excess of 700 cubic feet per month: $0.52 per 100 cubic feet. PASSED AND ADOPTED this 28th day of May 2019, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Brooke Jones, 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 ITEM NO. 8.2 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Staff Dept:Finance Prepared By:Kaden Young, Management Analyst Subject:Operating Budget for Fiscal Years 2020 and 2021 (Financial Summaries) SUMMARY: Attached for the Board's review and consideration are the Financial Summaries pertaining to the District's Operating Budget for FY20 and FY21. The budget allocates employee and financial resources to accomplish the District's mission and vision statements. It presents the framework and financial plan for responsibly carrying out the programs and capital projects that administer, operate, maintain, protect and replace the assets required to provide safe and reliable water and sewer service. STAFF RECOMMENDATION: That the Board of Directors approve Resolution No. 2019-XX adopting the Operating Budget for Fiscal Years 2020 and 2021 (Financial Summaries) and rescinding Resolution No. 18-23. DISCUSSION: Staff has adhered to the budget process in developing a proposed Operating Budget for Fiscal Years 2020 and 2021. At the April 23, 2019 Budget Workshop, which was an open workshop for all public to attend, staff presented a proposed Operating Budget that included a rate adjustment to the monthly meter charge (i.e. a $3.25 adjustment to the 1" meter charge, $35.74 a month for a 1"meter connection) with an effective date of January 1, 2020. At that time staff was directed by the Board of Directors' to prepare an analysis of results from various recommended scenarios to determine a recommendation that would yield a fiscally sound and stable budget for the next two years, while also meeting the set goals and objectives within the District's adopted Strategic Plan. At the May 14, 2019 Regular Board meeting, staff projected potential pass though adjustments to the commodity rate for the next five years and paired those with five separate scenarios of rate adjustments made to the monthly meter charges. The scenarios included a 5%, 9%, and 10% rate adjustment effective in July or January of each year. The Board voted 3-1-0-1 for staff to proceeding preparing the proposed budget for Fiscal Years 2020 and 2021 to include a 9% rate adjustment (i.e., $2.92 adjustment per month to a 1" meter), effective July 1, 2019. The included financial summaries 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 FY20 budget identifies $46,630,414 in total outlay, including $33,512,520 in total expenses, $7,720,659 in depreciation, and $5,397,235 in "pay-as-you-go" capital projects. Offsetting the expenses is $40,303,307 in anticipated revenue. The FY21 budget identifies $49,100,448 in total outlay, including $35,389,789 in total expenses, $7,720,659 in depreciation, and $5,990,000 in "pay-as-you-go" capital projects. Offsetting the expenses is $42,124,710 in anticipated revenue. STRATEGIC PLAN: G2 3B - Regularly assess net position and steps to meet strategic goals. ATTACHMENTS: Name:Description:Type: Resolution_No._2019-XX_-_FY20-21_Budget.docx Resolution Resolution FY2021_Budget_-_Financial_Summaries.pdf Backup Material Backup Material Resolution No. 2019-XX Adopting the Budget for Fiscal Years 2020 and 2021 1 RESOLUTION NO. 2019-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE OPERATING BUDGET FOR FISCAL YEARS 2020 AND 2021 AND RESCINDING RESOLUTION NO. 18-23 WHEREAS, the Yorba Linda Water District has prepared a two-year budget for Fiscal Years 2020 and 2021; and WHEREAS, on May 28, 2019 the proposed “Draft” Budget for Fiscal Years 2020 and 2021 was presented and reviewed at a meeting of the Board of Directors of the District; and WHEREAS, it is the desire of the Board of Directors to adopt the Budget for Fiscal Years 2020 and 2021, and rescind Resolution No. 18-23. 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 Years 2020 and 2021, set forth in Exhibit “A” and attached hereto, is hereby approved and adopted. Section 2. The Budget for Fiscal Years 2020 and 2021 is in full force and effect beginning July 1, 2019, and continuing until this Resolution is rescinded by the Board of Directors. Section 3. That Resolution No. 18-23 is hereby rescinded effective July 1, 2019. PASSED AND ADOPTED this 28th day of May 2019 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Brooke Jones, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Resolution No. 2019-XX Adopting the Budget for Fiscal Years 2020 and 2021 2 Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Yorba Linda Water District rrrr�1,i14�i8�Uty!'i"rri�n`t ITT 11 fill 1. C , �C a CD FY70 FY?w I inanci* a. Summaiies 2-Year (FY20 & FY21) Operating Budget Financial Summaries 2 | P a g e Total Revenue & Expenses [Water & Sewer ] FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Revenue (Operating): Water Revenue (Residential) $ 16,151,211 $ 16,592,437 $ 15,335,194 $ 16,548,758 $ 16,946,962 Water Revenue (Commercial & Fire Det.) 1,897,346 1,964,205 1,834,606 1,872,073 1,969,765 Water Revenue (Landscape/Irrigation) 4,031,102 3,863,805 3,552,435 3,917,982 4,056,592 Service Charges 10,002,493 10,116,528 10,046,253 10,988,263 12,011,758 Sewer Charge Revenue 2,064,083 2,229,246 2,188,390 2,421,665 2,447,582 Sewer Parcel Assessments 266,726 273,250 278,967 324,173 324,173 Other Operating Revenue 831,733 894,617 993,202 964,708 1,017,210 Total Operating Revenue 35,244,694 35,934,088 34,229,047 37,037,621 38,774,042 Revenue (Non-Operating): Interest 518,600 358,000 684,563 812,306 838,230 Property Tax 1,749,957 1,850,000 1,770,314 1,820,471 1,850,000 Other Non-Operating Revenue 413,465 639,846 704,319 632,910 662,438 Total Non-Operating Revenue 2,682,022 2,847,846 3,159,196 3,265,687 3,350,669 Total Revenue $ 37,926,716 $ 38,781,934 $ 37,388,243 $ 40,303,307 $ 42,124,710 Expenses (Operating): Variable Costs Water-Related Costs $ 12,644,569 $ 12,247,280 $ 11,900,339 $ 12,485,582 $ 13,665,365 Fixed Costs 1,129,360 1,188,085 1,188,085 1,179,009 1,182,773 Power-Related Costs 1,254,202 1,358,012 1,285,103 1,446,219 1,475,826 Variable Water Costs Related Expenses Total 15,028,131 14,793,377 14,373,528 15,110,810 16,323,964 Salary Related Expenses 9,874,212 11,084,493 10,742,011 11,959,922 12,576,273 Reduction for Capital Project Labor - (300,000) - (295,000) (387,000) Salary Related Expenses Total 9,874,212 10,784,493 10,742,011 11,664,922 12,189,273 Supplies & Services: Communications 147,634 171,097 171,238 241,595 244,525 Contractual Services 430,320 505,732 432,794 527,481 525,306 Data Processing 245,068 282,450 298,030 345,450 319,300 Dues & Memberships 84,263 88,230 81,853 84,790 88,525 Fees & Permits 254,832 280,453 310,418 305,780 306,176 Board Election - 75,000 75,000 - 138,700 Insurance 269,236 303,190 302,978 327,385 338,125 Materials 758,870 687,336 1,009,586 1,013,400 1,034,000 District Activities, Employee Recognition 29,033 46,250 38,142 46,635 48,070 Maintenance 538,874 604,600 681,275 736,300 732,040 Non-Capital Equipment 150,182 151,450 171,769 210,320 163,220 Office Expense 43,080 43,300 38,433 36,505 36,375 Professional Services 710,380 552,800 534,742 742,200 872,400 Training 37,749 78,240 62,942 86,870 79,695 Travel & Conferences 84,182 139,340 107,700 140,640 152,390 Uncollectible Accounts 4,611 3,000 4,268 4,500 5,100 Utilities 183,057 183,400 169,307 192,750 162,700 Vehicle Expenses 327,492 375,400 370,593 376,700 379,400 Supplies & Services Sub-Total 4,298,863 4,571,268 4,861,064 5,419,301 5,626,047 Total Operating Expenses $ 29,201,206 $ 30,149,138 $ 29,976,602 $ 32,195,034 $ 34,139,284 Expenses (Non-Operating): Interest Expense $ 1,106,515 $ 1,325,785 $ 1,350,616 $ 1,303,967 $ 1,236,960 Other Expense 89,021 14,200 7,642 13,520 13,545 Total Non-Operating Expenses 1,195,536 1,339,985 1,358,258 1,317,487 1,250,505 Total Expenses $ 30,396,742 $ 31,489,123 $ 31,334,860 $ 33,512,520 $ 35,389,789 Net Income Before Capital Contributions and Special Item(s) $ 7,529,974 $ 7,292,811 $ 6,053,382 $ 6,790,787 $ 6,734,921 Special Item(s) (2,205,847) - - - - Capital Contributions 3,554,123 - 38,556 - - Net Income Before Depreciation 8,878,250 7,292,811 6,091,938 6,790,787 6,734,921 Depreciation 7,465,977 7,726,142 7,708,222 7,720,659 7,720,659 Income (Loss) $ 1,412,273 $ (433,331) $ (1,616,284) $ (929,872) $ (985,737) 2-Year (FY20 & FY21) Operating Budget Financial Summaries 3 | P a g e Total Revenue & Expenses [Water ] FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Revenue (Operating): Water Revenue (Residential) $ 16,151,211 $ 16,592,437 $ 15,335,194 $ 16,548,758 $ 16,946,962 Water Revenue (Commercial & Fire Det.) 1,897,346 1,964,205 1,834,606 1,872,073 1,969,765 Water Revenue (Landscape/Irrigation) 4,031,102 3,863,805 3,552,435 3,917,982 4,056,592 Service Charges 10,002,493 10,116,528 10,046,253 10,988,263 12,011,758 Other Operating Revenue 763,069 827,887 927,400 902,996 949,726 Total Operating Revenue 32,845,221 33,364,862 31,695,888 34,230,072 35,934,803 Revenue (Non-Operating): Interest 444,371 310,000 593,272 698,777 721,079 Property Tax 1,749,957 1,850,000 1,770,314 1,820,471 1,850,000 Other Non-Operating Revenue 403,721 605,346 680,002 608,430 637,958 Total Non-Operating Revenue 2,598,049 2,765,346 3,043,588 3,127,678 3,209,037 Total Revenue $ 35,443,270 $ 36,130,208 $ 34,739,476 $ 37,357,750 $ 39,143,840 Expenses (Operating): Variable Costs Water-Related Costs $ 12,644,569 $ 12,247,280 $ 11,900,339 $ 12,485,582 $ 13,665,365 Fixed Costs 1,129,360 1,188,085 1,188,085 1,179,009 1,182,773 Power-Related Costs 1,254,202 1,358,012 1,285,103 1,446,219 1,475,826 Variable Water Costs Related Expenses Total 15,028,131 14,793,377 14,373,528 15,110,810 16,323,964 Salary Related Expenses 8,828,638 9,931,772 9,606,872 10,753,255 11,260,314 Reduction for Capital Project Labor - (279,000) - (225,000) (312,000) Salary Related Expenses Total 8,828,638 9,652,772 9,606,872 10,528,255 10,948,314 Supplies & Services: Communications 138,958 159,120 166,455 228,183 230,908 Contractual Services 400,827 475,966 420,298 496,717 494,695 Data Processing 228,103 265,129 281,604 324,069 299,749 Dues & Memberships 78,219 82,077 64,365 78,862 82,335 Fees & Permits 244,196 264,546 296,701 290,271 290,647 Board Election - 69,750 71,030 - 128,991 Insurance 250,493 281,967 285,649 304,468 314,456 Materials 720,410 658,714 951,328 948,195 964,050 District Activities, Employee Recognition 27,010 43,013 27,242 43,371 44,705 Maintenance 398,511 432,971 525,265 565,165 561,553 Non-Capital Equipment 123,995 115,294 149,485 170,778 126,625 Office Expense 40,087 40,343 35,677 33,950 33,829 Professional Services 674,815 518,804 502,129 585,971 672,664 Training 32,350 65,188 51,764 78,301 67,516 Travel & Conferences 78,429 125,279 97,937 126,278 137,206 Uncollectible Accounts 4,155 2,790 2,405 4,185 4,743 Utilities 169,758 169,911 157,653 179,258 151,311 Vehicle Expenses 255,417 316,262 325,115 335,600 335,600 Supplies & Services Sub-Total 3,865,733 4,087,123 4,412,101 4,793,620 4,941,583 Total Operating Expenses $ 27,722,502 $ 28,533,272 $ 28,392,501 $ 30,432,685 $ 32,213,861 Expenses (Non-Operating): Interest Expense $ 1,106,515 $ 1,325,785 $ 1,350,616 $ 1,303,967 $ 1,236,960 Other Expense 47,465 8,600 9,758 13,520 13,545 Total Non-Operating Expenses 1,153,980 1,334,385 1,360,374 1,317,487 1,250,505 Total Expenses $ 28,876,482 $ 29,867,657 $ 29,752,875 $ 31,750,172 $ 33,464,366 Net Income Before Capital Contributions and Special Item(s) $ 6,566,788 $ 6,262,551 $ 4,986,601 $ 5,607,578 $ 5,679,474 Special Item(s) (2,205,847) - - - - Capital Contributions 1,907,644 - 34,500 - - Net Income Before Depreciation 6,268,585 6,262,551 5,021,101 5,607,578 5,679,474 Depreciation 6,098,375 6,329,146 6,311,226 6,289,903 6,289,903 Income (Loss) $ 170,210 $ (66,595) $ (1,290,125) $ (682,325) $ (610,429) 2-Year (FY20 & FY21) Operating Budget Financial Summaries 4 | P a g e FY20 & FY21 ProForma [Water ] FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Revenue (Operating): Water Revenue (Residential) $ 16,592,437 $ 15,335,194 $ 16,548,758 $ 16,946,962 Water Revenue (Commercial & Fire Det.) 1,964,205 1,834,606 1,872,073 1,969,765 Water Revenue (Landscape/Irrigation) 3,863,805 3,552,435 3,917,982 4,056,592 Service Charges 10,116,528 10,046,253 10,988,263 12,011,758 Other Operating Revenue 827,887 927,400 902,996 949,726 Total Operating Revenue 33,364,862 31,695,888 34,230,072 35,934,803 Revenue (Non-Operating): Interest 310,000 593,272 698,777 721,079 Property Taxes 1,850,000 1,770,314 1,820,471 1,850,000 Other Non-Operating Revenue 605,346 680,002 608,430 637,958 Total Non-Operating Revenue 2,765,346 3,043,588 3,127,678 3,209,037 Total Revenue $ 36,130,208 $ 34,739,476 $ 37,357,750 $ 39,143,840 Expenses (Operating): Variable Water Costs (G.W., Import & Power) Water-Related Costs $ 12,247,280 $ 11,900,339 $ 12,485,582 $ 13,665,365 Fixed Costs 1,188,085 1,188,085 1,179,009 1,182,773 Power-Related Costs 1,358,012 1,285,103 1,446,219 1,475,826 Variable Water Costs Related Expenses Total 14,793,377 14,373,528 15,110,810 16,323,964 Salary Related Expenses 9,931,772 9,606,872 10,753,255 11,260,314 Reduction for Capital Project Labor (279,000) (225,000) (312,000) Salary Related Expenses Total 9,652,772 9,606,872 10,528,255 10,948,314 Supplies & Services Communications 159,120 166,455 228,183 230,908 Contractual Services 475,966 420,298 496,717 494,695 Data Processing 265,129 281,604 324,069 299,749 Dues & Memberships 82,077 64,365 78,862 82,335 Fees & Permits 264,546 296,701 290,271 290,647 Board Election 69,750 71,030 - 128,991 Insurance 281,967 285,649 304,468 314,456 Materials 658,714 951,328 948,195 964,,050 District Activities, Employee Recognition 43,013 27,242 43,371 44,705 Maintenance 432,971 525,265 565,165 562,553 Non-Capital Equipment 115,294 149,485 170,778 126,625 Office Expense 40,343 35,677 33,950 33,829 Professional Services 518,804 502,129 585,971 672,664 Training 65,188 51,764 78,301 67,516 Travel & Conferences 125,279 97,937 126,278 137,206 Uncollectible Accounts 2,790 2,405 4,185 4,743 Utilities 169,911 157,653 179,258 151,311 Vehicle Expenses 316,262 325,115 335,600 335,600 Supplies & Services Sub-Total 4,087,123 4,412,101 4,793,620 4,941,583 Total Operating Expenses 28,533,272 28,392,501 30,432,685 32,213,861 Expenses (Non-Operating) Other Expense 8,600 9,758 13,520 13,545 Total Non-Operating Expenses 8,600 9,758 13,520 13,545 Total Expenses $ 28,541,872 $ 28,402,259 $ 30,446,205 $ 32,227,406 Net Revenues 7,588,336 6,337,217 6,911,545 6,916,434 Less: Debt Service (Principal & Interest) 2,738,258 2,738,256 2,726,956 2,729,381 Less: Committed Capital Expenditures (PayGo) 4,484,500 3,204,555 3,518,470 4,109,796 Transfer to/(from) Reserves 365,578 394,406 666,119 77,256 Net $ - $ - $ - $ - 2-Year (FY20 & FY21) Operating Budget Financial Summaries 5 | P a g e Total Revenue & Expenses [Sewer ] FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Revenue (Operating): Sewer Charge Revenue $ 2,064,083 $ 2,229,246 $ 2,188,390 $ 2,421,665 $ 2,447,582 Sewer Parcel Assessments 266,726 273,250 278,967 324,173 324,173 Other Operating Revenue 68,664 66,730 65,802 61,712 67,484 Total Operating Revenue 2,399,473 2,569,226 2,533,159 2,807,549 2,839,239 Revenue (Non-Operating): Interest 74,229 48,000 91,291 113,528 117,152 Other Non-Operating Revenue 9,744 34,500 24,317 24,480 24,480 Total Non-Operating Revenue 83,973 82,500 115,608 138,008 141,632 Total Revenue $ 2,483,446 $ 2,651,726 $ 2,648,767 $ 2,945,557 $ 2,980,870 Expenses (Operating): Salary Related Expenses $ 1,045,574 $ 1,152,721 $ 1,135,139 $ 1,206,668 $ 1,315,959 Reduction for Capital Project Labor - (21,000) - (70,000) (75,000) Salary Related Expenses Total 1,045,574 1,131,721 1,135,139 1,136,668 1,240,959 Supplies & Services: Communications 8,676 11,977 4,783 1341,2 13,617 Contractual Services 29,493 29,766 12,496 3076,4 30,611 Data Processing 16,965 17,322 16,426 2138,2 19,551 Dues & Memberships 6,044 6,153 17,488 592,8 6,190 Fees & Permits 10,636 15,907 13,717 1550,9 15,529 Board Election - 5,250 3,970 - 9,709 Insurance 18,743 21,223 17,329 22,917 23,669 Materials 38,460 28,622 58,258 65,206 69,950 District Activities, Employee Recognition 2,023 3,238 10,900 3,264 3,365 Maintenance 140,363 171,630 156,010 171,135 170,487 Non-Capital Equipment 26,187 36,157 22,284 39,542 36,595 Office Expense 2,993 2,957 2,756 2,555 2,546 Professional Services 35,565 33,996 32,613 156,229 199,736 Training 5,399 13,052 11,177 8,569 12,179 Travel & Conferences 5,753 14,061 9,762 14,362 15,184 Uncollectible Accounts 456 210 1,863 ,315 357 Utilities 13,299 13,489 11,653 13,493 11,389 Vehicle Expenses 72,075 59,138 45,478 41,100 43,800 Supplies & Services Sub-Total 433,130 484,145 448,962 625,681 684,464 Total Operating Expenses $ 1,478,704 $ 1,615,866 $ 1,584,101 $ 1,762,348 $ 1,925,423 Expenses (Non-Operating): Interest Expense $ - $ - $ - $ - $ - Other Expense 41,556 5,600 (2,116) - - Total Non-Operating Expenses 41,556 5,600 (2,116) - - Total Expenses $ 1,520,260 $ 1,621,466 $ 1,581,985 $ 1,762,348 $ 1,925,423 Net Income Before Capital Contributions and Special Item(s) $ 963,186 $ 1,030,260 $ 1,066,782 $ 1,183,209 $ 1,055,447 Special Item(s) - - - - - Capital Contributions 1,646,479 - 4,056 - - Net Income Before Depreciation 2,609,665 1,030,260 1,070,838 1,183,209 1,055,447 Depreciation 1,367,602 1,396,996 1,396,996 1,430,756 1,430,756 Income (Loss) $ 1,242,063 $ (366,736) $ (326,158) $ (247,547) $ (375,308) 2-Year (FY20 & FY21) Operating Budget Financial Summaries 6 | P a g e Fund Balance; FYE16-21 Fiscal Year Ending Water Fund Sewer Fund Total 06/30/16 Net Income(Loss) Before Capital Contributions 3,570,189 (605,197) 2,964,992 Capital Contributions 347,795 440,650 788,445 Change in Net Position FY 2016 3,917,984 (164,547) 3,753,437 Net Position @ 6/30/2016 $ 122,757,781 $ 41,618,321 $ 164,376,102 06/30/17 Net Income (Loss) Before Capital Contributions 259,855 (321,996) (62,141) Capital Contributions 1,556,801 1,108,661 2,665,462 Estimated Net Income (Loss) @ 6/30/2017 1,816,656 786,665 2,603,321 Estimated Net Position @ 6/30/2017 $ 124,574,437 $ 42,404,986 $ 166,979,423 06/30/18 Net Income (Loss) Before Capital Contributions 468,413 (404,416) 63,997 Capital Contributions 1,907,644 1,646,479 3,554,123 Special Item(s) (2,205,847) - (2,205,847) Prior-Period Adjustment (2,244,616) (270,211) (2,514,827) Change in Net Income (Loss) @ 6/30/2018 (2,074,406) 971,852 (1,102,554) Estimated Net Position @ 6/30/2018 $ 122,500,031 43,376,838 165,876,869 06/30/19 Revenue (Operating): Water Sales 30,768,488 - 30,768,488 Sewer Revenues - 2,467,357 2,467,357 Other Operating Revenue 927,400 65,802 993,202 Interest 593,272 91,291 684,563 Property Taxes 1,770,314 - 1,770,314 Other Non-Operating Revenue 680,002 24,317 704,319 Total Estimated Revenues FY2019 34,739,476 2,648,767 37,388,243 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 14,373,528 - 14,373,528 Salary Related Expenses 9,606,872 1,135,139 10,742,011 Supplies & Services 4,412,101 448,962 4,861,063 Depreciation 6,311,226 1,396,996 7,708,222 Interest on Long Term Debt 1,350,616 - 1,350,616 Other Expense 9,758 (2,116) 7,642 Total Estimated Expenses FY2019 36,064,101 2,978,981 39,043,082 Estimated Net Income (Loss) Before Capital Contributions (1,324,625) (330,214) (1,654,839) Capital Contributions 34,500 4,056 38,556 Estimated Net Income (Loss) @ 6/30/2019 (1,290,125) (326,158) (1,616,283) Estimated Net Position @ 6/30/2019 $ 121,209,906 $ 43,050,680 $ 164,260,586 06/30/20 Revenue (Operating): Water Sales 33,327,076 - 33,327,076 Sewer Revenues - 2,745,838 2,745,838 Other Operating Revenue 902,996 61,712 964,708 Interest 698,777 113,528 812,305 Property Taxes 1,820,471 - 1,820,471 Other Non-Operating Revenue 608,430 24,480 632,910 Total Estimated Revenues FY2020 37,357,750 2,945,558 40,303,308 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 15,110,810 - 15,110,810 Salary Related Expenses 10,528,255 1,136,668 11,664,923 Supplies & Services 4,793,620 625,681 5,419,301 Depreciation 6,289,903 1,430,756 7,720,659 Interest on Long Term Debt 1,303,967 - 1,303,967 Other Expense 13,520 - 13,520 Total Estimated Expenses FY2020 38,040,075 3,193,105 41,233,180 Estimated Net Income (Loss) @ 6/30/2020 (682,325) (247,547) (929,872) Estimated Net Position @ 6/30/2020 $ 120,527,581 $ 42,803,133 $ 163,330,714 2-Year (FY20 & FY21) Operating Budget Financial Summaries 7 | P a g e Fund Balance; FYE16-21 – cont. Fiscal Year Ending Water Fund Sewer Fund Total 06/30/21 Revenue (Operating): Water Sales 34,985,077 - 34,985,077 Sewer Revenues - 2,771,755 2,771,755 Other Operating Revenue 949,726 67,484 1,017,210 Interest 721,079 117,152 838,231 Property Taxes 1,850,000 - 1,850,000 Other Non-Operating Revenue 637,958 24,480 662,438 Total Estimated Revenues FY2021 39,143,840 2,980,871 42,124,711 Expenses (Operating): Variable Water Costs (G.W., Import & Power) 16,323,964 - 16,323,964 Salary Related Expenses 10,948,314 1,240,959 12,189,273 Supplies & Services 4,941,583 684,464 5,626,047 Depreciation 6,289,903 1,430,756 7,720,659 Interest on Long Term Debt 1,236,960 - 1,236,960 Other Expense 13,545 - 13,545 Total Estimated Expenses FY2021 39,754,269 3,356,179 43,110,448 Estimated Net Income (Loss) @ 6/30/2021 (610,429) (375,308) (985,737) Estimated Net Position @ 6/30/2021 $ 119,917,152 $ 42,427,825 $ 162,344,977 2-Year (FY20 & FY21) Operating Budget Financial Summaries 8 | P a g e Debt Administration The District’s debt rating from Fitch is “AA” and from Standard and Poor’s is “AA+”. The District has a Debt Management Policy, but no legal debt limit. The District’s future borrowing capacity is limited by the debt coverage ratio required by existing bond covenants. The ratio is calculated using revenue and expenses data pertaining to the Water Fund only and the covenants require that the coverage exceed 1.25; however, the Debt Management policy sets a target of 2.25. The District’s budgeted ratios art is 2.60 for Fiscal Year 2020 and 2.55 for Fiscal Year 2021. The District’s FY20 and FY21 budgeted debt service obligations $2,726,956 and $2,729,381) are related to its two existing debt issuances. Use of proceeds and the corresponding principal balance of each are as follows: Year of Issuance Use of Proceeds Principal Balance as of June 30, 2019 Principal Balance as of June 30, 2020 2012A Refunding Bond Refunding Bonds funds are being issued to finance certain capital improvements, to fund a reserve fund, and to pay certain costs of delivery. 6,625,000 6,310,000 2017A Refunding Bond Refunding Bonds funds are being issued to finance the acqusitionand construction of certain capital improvements to the District's Water System, to refund all of the currently outstanding YLWD 2008 Revenue Certificates of Participation, and to pay certain costs of issuance. 27,560,000 26,700,000 34,185,000$ 33,010,000$ 2-Year (FY20 & FY21) Operating Budget Financial Summaries 9 | P a g e Debt service requirements for the District’s Certificates of Participation are as follows: FY2020-24 Year Principal Interest Total 2020 $1,175,000 $1,551,956 $2,726,956 2021 $1,230,000 $1,499,381 $2,729,381 2022 $1,290,000 $1,438,919 $2,728,919 2023 $1,350,000 $1,374,681 $2,724,681 2024 $1,420,000 $1,306,331 $2,726,331 2025-2029 $8,225,000 $5,320,181 $13,545,181 2030-2034 $10,140,000 $3,396,753 $13,536,753 2035-2039 $9,355,000 $1,208,475 $10,563,475 Total $34,185,000 $17,096,678 $51,281,678 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 FY2020-24 Debt Service Requirements Principal Interest 2-Year (FY20 & FY21) Operating Budget Financial Summaries 10 | P a g e FY2021-25 Year Principal Interest Total 2021 $1,230,000 $1,499,381 $2,729,381 2022 $1,290,000 $1,438,919 $2,728,919 2023 $1,350,000 $1,374,681 $2,724,681 2024 $1,420,000 $1,306,331 $2,726,331 2025 $1,490,000 $1,233,581 $2,723,581 2026-2030 $8,620,000 $4,901,831 $13,521,831 2031-2035 $9,945,000 $3,004,922 $12,949,922 2036-2039 $7,665,000 $785,075 $8,450,075 Total $33,010,000 $15,544,722 $48,554,722 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2021 2022 2023 2024 2025 FY2021-25 Debt Service Requirements Principal Interest 2-Year (FY20 & FY21) Operating Budget Financial Summaries 11 | P a g e Personnel Trends by Position Position/Title FY17 FY18 FY19 FY20 FY21 ADMINISTRATION DEPARTMENT Assistant General Manager - 1 1 1 1 Communication Manager 1 - - - - Director of Public Affairs - - - 1 1 Executive Assistant 1 1 1 1 1 General Manager 1 1 1 1 1 Information Systems Administrator (Software) - - - 1 1 Management Analyst 1 1 1 - - Office Clerk 1 - - - - Public Affairs Representative 1 1 1 1 1 Senior Management Analyst - - - 1 1 Water Conservation Representative 1.5 - - - - Water Conservation Supervisor 1 - - - - Total Administration Personnel 8.5 5.0 5.0 7.0 7.0 Changes and Trends:  The Director of Public Affairs was added as one full-time authorized position.  Information Systems Administrator (Software) was transferred from Information Technology.  The Management Analyst was reclassified to Senior Management Analyst. Position/Title FY17 FY18 FY19 FY20 FY21 ENGINEERING DEPARTMENT Associate Engineer 1 1 1 - - Construction Inspector 1 1 1 1 1 Construction Project Supervisor 1 1 1 - - Construction Project Manager - - - 1 1 Engineering Intern - - - 0.5 0.5 Engineering Manager 1 1 1 1 1 Engineering Technician II 2 2 2 2 2 GIS Analyst - - - 1 1 Principal Engineer - - - 1 1 Senior Construction Inspector 1 1 1 1 1 Senior Engineer - - - 1 1 Senior Project Manager 1 1 1 1 1 Water Quality Engineer 1 1 1 - - Water Quality Technician II 1 1 1 - - Total Engineering Personnel 10.0 10.0 10.0 10.5 10.5 Changes and Trends:  The Associate Engineer was reclassified to Senior Engineer.  The Construction Project Supervisor was reclassified to Construction Project Manager.  An Engineering Intern/GIS was added as one part-time authorized position.  The GIS Analyst was transferred from Information Technology.  The Water Quality Engineer was reclassified to Principal Engineer.  The Water Quality Technician II was transferred to Operations. 2-Year (FY20 & FY21) Operating Budget Financial Summaries 12 | P a g e Position/Title FY17 FY18 FY19 FY20 FY21 FINANCE DEPARTMENT Accountant - 1 1 1 1 Accounting Assistant I 1 1 - - - Accounting Assistant II 1 1 2 2 2 Customer Service Representative II 2 2 2 3 3 Customer Service Representative III 2 2 2 2 2 Customer Service Billing Administrator - - - 1 1 Customer Service Supervisor 1 1 1 - - Finance Manager 1 1 1 1 1 Meter Reader I 1 1 1 - - Meter Reader II 2 2 2 - - Meter Service Lead 1 1 1 - - Senior Accountant 1 1 1 1 1 Total Finance Personnel 13.0 14.0 14.0 11.0 11.0 Changes and Trends:  The Office Clerk was transferred from Operations and reclassified to Customer Service Rep II.  The Customer Service Supervisor was reclassified to Customer Service Billing Administrator.  All Meter Reader I and Meter Reader II were transferred to Operations.  The Meter Services Lead was transferred to Operations and reclassified to Senior Field Customer Services Representative/Meters. Position/Title FY17 FY18 FY19 FY20 FY21 HUMAN RESOURCES DEPARTMENT Human Resources Analyst 2 1 1 1 1 Human Resources/Risk & Safety Manager 1 1 1 1 1 Human Resources Technician - 1 1 1 1 Records Management Administrator 1 1 1 1 1 Records Management Specialist 1 1 1 1 1 Safety & Training Analyst 1 1 1 - - Total Human Resources Personnel 4.0 6.0 6.0 5.0 5.0 Changes and Trends:  The Safety & Training Analyst was transferred to Operations. Position/Title FY17 FY18 FY19 FY20 FY21 INFORMATION TECHNOLOGY DEPARTMENT GIS Analyst 1 1 1 - - Information Systems Administrator (Hardware) 1 1 1 1 1 Information Systems Technician I 1 1 1 1 1 Instrumentation Technician - - - - - Information Technology Manager 1 1 1 1 1 Programmer Analyst 1 1 1 - - Total Information Technology Personnel 7.0 5.0 5.0 3.0 3.0 Changes and Trends:  The GIS Analyst was transferred to Engineering.  The Programmer Analyst was transferred to Administration and was reclassified to Information Systems Administrator (Software). 2-Year (FY20 & FY21) Operating Budget Financial Summaries 13 | P a g e Position/Title FY17 FY18 FY19 FY20 FY21 OPERATIONS DEPARTMENT Chief Water System Operator - 1 1 - - Electrical/Instrumentation Technician - - 1 - - Facilities Maintenance Worker 1 1 1 1 1 Instrumentation Technician 1 1 - - - Maintenance Superintendent - - - 1 1 Maintenance Worker I 9 9 9 9 9 Maintenance Worker II 7 7 6 6 6 Maintenance Worker III 5 5 5 5 5 Mechanic II 1 1 1 1 1 Mechanic III 1 1 1 1 1 Meter Reader I 1 1 1 2 2 Meter Reader II 2 2 2 1 1 Office Clerk 1 1 1 - - Operations Assistant - - - 1 1 Operations/Warehouse Assistant 1 1 1 - - Operations Manager 1 1 1 1 1 Operations Superintendent - - - 1 1 Plant Operator I - 1 1 - - Plant Operator I (Operator-in-Training) - - - 1 1 Plant Operator II 3 2 2 3 3 Production Superintendent - - - 1 1 Safety & Training Analyst - - - 1 1 SCADA Administrator 1 - - - - Senior Field Customer Services Representative/Meters - - - 1 1 Senior Fleet Mechanic 1 1 1 - - Senior Maintenance Worker 4 4 4 4 4 Senior Mechanic - - - 1 1 Senior Plant Operator 1 1 1 1 1 Senior SCADA Technician - - 1 1 1 Water Quality Technician II - - - 1 1 Water Maintenance Superintendent 1 1 1 - - Water Production Superintendent 1 1 1 - - Total Operations Personnel 38.0 40.0 40.0 45.0 45.0 Changes and Trends:  The Chief Water System Operator was reclassified to Operations Superintendent.  The Electrical/Instrumentation Technician was reclassified to Plant Operator I (Operator-in-Training).  The Plant Operator I was reclassified to Plant Operator II.  All Meter Reader I and Meter Reader II were transferred from Finance.  The Safety & Training Analyst was transferred from Human Resources.  The Senior Field Customer Services Representative/Meters was transferred from Finance.  The Office Clerk was transferred to Finance and reclassified to Customer Service Representative II.  The Operations/Warehouse Assistant was reclassified to Operations Assistant.  The Senior Fleet Mechanic was reclassified to Senior Mechanic.  The Water Maintenance Superintendent was reclassified to Maintenance Superintendent.  The Water Production Superintendent was reclassified to Production Superintendent.  The Water Quality Technician II was transferred from Engineering. 2-Year (FY20 & FY21) Operating Budget Financial Summaries 14 | P a g e Personnel Trends by Department DEPARTMENT FY17* FY18 FY19 FY20 FY21 Administration 8.5 5.0 5.0 7.0 7.0 Engineering 10.0 10.0 10.0 10.5 10.5 Finance 13.0 14.0 14.0 11.0 11.0 Human Resources 6.0 6.0 6.0 5.0 5.0 Information Technology 5.0 5.0 5.0 3.0 3.0 Operations 40.0 40.0 40.0 45.0 45.0 District Department Totals 82.5 80.0 80.0 81.5 81.5 * Includes (3) Limited-Term, Full Time and (1) Limited-Term, Part Time employees in response to State’s Emergency Drought Declaration 0 10 20 30 40 50 60 70 80 90 FY17* FY18 FY19 FY20 FY21 40 40 40 45 45 5 5 5 3 3 6 6 6 5 5 13 14 14 11 11 10 10 10 10.5 10.5 8.5 5 5 7 7 Personnel CountOperations IT HR Finance Engineering Administration 2-Year (FY20 & FY21) Operating Budget Financial Summaries 15 | P a g e 2-Year (FY20 & FY21) Operating Budget Financial Summaries 16 | P a g e Capital Improvement Plan FY20 FY21 FY22 FY23 FY24 Capital Improvement and R&R Projects Mickel and Camino Verde Waterline Replacement $ 600,000 $ $ $ $ Lakeview Booster Pump Station Piping (Water Quality) 200,000 Timber Ridge Pump 4 Replacement 300,000 Hidden Hills BPS Upgrades 300,000 Ridgeway Waterline Replacement 700,000 Avolinda and Imperial Waterline Replacement 1,300,000 Site and Security Upgrades at District Facilities (Bioterrorism Act of 2002) 500,000 500,000 500,000 500,000 Well 22 Equipping 900,000 Field Headquarters Rehabilitation (HVAC, Roof, Paving) 500,000 Well Equipment Rehabilitation 150,000 150,000 150,000 150,000 150,000 Reservoir Operational Repair and Replacement 100,000 100,000 100,000 100,000 Box Canyon Pump 2 Replacement 70,000 Apple Creek and Del Rey PRS Replacement 450,000 Dominguez Hills and Paseo Del Prado PRS Replacement 600,000 Waterline Replacement 2,000,000 2,000,000 2,000,000 Richfield Chemical System Replacement 800,000 Well 20 Chemical System Replacement 400,000 Well 23 Lakeview Chemical System Replacement Pump Station Rehabilitation Pressure Regulating Station (PRS) Replacement Reservoir Fire Hardening (4 sites) 500,000 Water Supply Redundancy and Fire Flow Reliability (5 sites) Water Capitalized Labor 225,000 312,000 380,000 355,000 405,000 Sewer System Rehabilitation and Replacement 350,000 350,000 350,000 350,000 350,000 Community Facilities District/Sewer Assessment District Projects 350,000 400,000 500,000 500,000 500,000 Sewer Capitalized Labor 70,000 75,000 85,000 85,000 85,000 Annual Total $ 3,245,000 $ 4,257,000 $ 5,115,000 $ 4,840,000 $ 5,390,000 Vehicle and Capital Equipment Replacements SCADA Radio Communications Enhancement $ 175,000 $ $ $ $ IT Capital Outlay 187,425 196,796 262,235 272,235 300,000 Operations Water Capital Outlay 367,000 481,000 222,000 285,000 300,000 Vehicle Replacement - Sewer 475,000 Operations Sewer Capital Outlay 314,045 Replacement Total $ 1,043,470 $ 677,796 $ 959,235 $ 557,235 $ 600,000 CAPITAL EXPENDITURES TOTAL $ 4,288,470 $ 4,934,796 $ 6,074,235 $ 5,397,235 $ 5,990,000 2-Year (FY20 & FY21) Operating Budget Financial Summaries 17 | P a g e Capital Projects Summary Camino Verde and Mickel Waterline Improvements Total Project Budget: $600,000 Proposed FY20 Budget: $600,000 As part of the District’s continuing Rehabilitation & Replacement (R&R) Program to replace aging infrastructure, waterline improvements are planned for Camino Verde, Mickel Lane, Ohio Avenue, Palm Avenue, and Easy Street. This project was identified in the District’s 2018 Asset Management Plan. Design work was completed in FY19. Construction will be completed in FY20. Lakeview Booster Pump Station Piping Total Project Budget: $200,000 Proposed FY20 Budget: $200,000 This project will modify the existing piping at the Lakeview Booster Pump Station to allow for improved water quality in the Lakeview Reservoir. This project was identified in the District’s 2018 Asset Management Plan. Design work and construction will be completed in FY20. Timber Ridge Pump 4 Replacement Total Project Budget: $300,000 Proposed FY20 Budget: $300,000 This project will replace the existing pump and natural gas engine at the Timber Ridge Booster Pump Station. The pump is beyond its useful life and replacement parts are no longer available. This project was identified in the District’s 2018 Asset Management Plan. Design work and construction will be completed in FY20. Hidden Hills BPS Upgrades Total Project Budget: $300,000 Proposed FY21 Budget: $300,000 This project will replace the existing pump at Hidden Hills Booster Pump Station with a larger pump to meet anticipated demands and increase fire protection. This project also includes structural and electrical improvements, and the addition of a natural gas backup generator. This project was identified in the District’s 2018 Asset Management Plan. Design work will be completed in FY20. Construction will be completed in FY21. Ridgeway Waterline Replacement Total Project Budget: $700,000 Proposed FY21 Budget: $700,000 As part of the District’s continuing R&R Program to replace aging infrastructure, waterline improvements are planned for Ridgeway Drive. There is extensive leak history in the area and meter clusters that are inaccessible and need to be relocated. This project was identified in the District’s 2018 Asset Management Plan. Design work will be completed in FY20. Construction will be completed in FY21. 2-Year (FY20 & FY21) Operating Budget Financial Summaries 18 | P a g e Avolinda and Imperial Waterline Replacement Total Project Budget: $1,300,000 Proposed FY21 Budget: $1,300,000 As part of the District’s continuing R&R Program to replace aging infrastructure, waterline improvements are planned for Avolinda Drive and Imperial Highway. This project was identified in the District’s 2018 Asset Management Plan. Design work will be completed in FY20. Construction will be completed in FY21. Site and Security Upgrades at District Facilities Total Project Budget: $2,000,000 Proposed FY21 Budget: $500,000 As part of the Bioterrorism Act of 2002, the District will need to make upgrades for cyber security, natural disaster, and terrorist threat protection at all facilities. A Risk and Resilience Assessment with recommended improvements will be completed in FY20. From FY21 through FY24, $500,000 is budgeted each year to make these improvements. Field Headquarters Rehabilitation Total Project Budget: $500,000 Proposed FY20 Budget: $500,000 Rehabilitation work is needed on facilities located at the District’s field headquarters, including: new roofing for Building 2, new air conditioning equipment for the two Operations buildings, and replacement of asphalt paving and concrete gutters throughout the site. Design work and construction will be completed in FY20. Well Rehabilitation Project Total Project Budget: $750,000 Proposed FY20 Budget: $150,000 Proposed FY21 Budget: $150,000 As part of the District’s continuing R&R Program, two existing wells are planned for rehabilitation in FY20 and an additional two existing wells are planned for rehabilitation in FY21. This project was identified in the District’s 2018 Asset Management Plan. In the District’s 5-year CIP, two wells are planned for rehabilitation each year, beginning in FY20. Reservoir Operational Repair and Replacement Total Project Budget: $400,000 Proposed FY21 Budget: $100,000 The District’s buried concrete reservoirs are in need of internal rehabilitation, including: replacement of valves, vents, roof hatches, exposed pipe, ladders, and other appurtenances. This project also includes cleaning and seal-coat of the bottom and sides of the reservoirs to mitigate against leakage. This project was identified in the District’s 2018 Asset Management Plan. Design work and construction will be completed in FY21. In the District’s 5-year CIP, $100,000 is budgeted for each year, beginning in FY21. 2-Year (FY20 & FY21) Operating Budget Financial Summaries 19 | P a g e Box Canyon Pump 2 Replacement Total Project Budget: $70,000 Proposed FY21 Budget: $70,000 This project will replace the existing pump at Box Canyon Booster Pump Station that is operationally inefficient. Design work and construction will be completed in FY21. Reservoir Fire Hardening Total Project Budget: $500,000 Proposed FY20 Budget: $500,000 This project includes improvements at four reservoirs located in wildfire interface areas. The improvements will protect assets at the reservoirs to increase reliability in a wildfire emergency. Design work and construction will be completed in FY20. Sewer Pipe Relining and Manhole Rehabilitation Project Total Project Budget: $1,750,000 Proposed FY20 Budget: $350,000 Proposed FY21 Budget: $350,000 As part of the District’s continuing R&R Program to replace aging infrastructure, sewer line rehabilitation is planned for FY20 and FY21. The proposed method is relining where a new liner is cast and cured in place. This method is proven to be a cost-effective, technically optimal solution for sewer line rehabilitation. This project was identified in the District’s 2018 Asset Management Plan. In the District’s 5-year CIP, $350,000 is budgeted for each year, beginning in FY20. Community Facilities District/Assessment District Projects Total Project Budget: $2,250,000 Proposed FY20 Budget: $350,000 Proposed FY21 Budget: $400,000 This project includes the cost for the District to create Community Facilities Districts or Sewer Assessment Districts to move residents from private septic systems to the public sewer system. In the District’s 5-year CIP, $350,000 is budgeted for FY20, $400,000 is budgeted for FY21, and $500,000 is budgeted for FY22, FY23, and FY24. 2-Year (FY20 & FY21) Operating Budget Financial Summaries 20 | P a g e 2-Year (FY20 & FY21) Operating Budget Financial Summaries 21 | P a g e FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Salary Related Expenses Salaries - Directors $ 56,850 $ 90,000 $ 52,800 $ 90,000 $ 90,000 Fringe Benefits 1,797 1,961 1,546 1,566 1,594 Mandatory Benefits - Directors 4,975 7,494 4,184 7,494 7,494 Salary Related Total $ 63,622 $ 99,454 $ 58,530 $ 99,059 $ 99,088 Supplies & Services Communications $ 300 $ - $ - $ - $ - Contractual Services - - - - - Dues & Memberships 60 60 60 270 270 Board Election Expenses - 75,000 75,000 - 138,700 District Meetings and Events 1,198 3,000 1,800 2,000 2,000 Non-Capital Equipment - 5,000 3,100 1,000 2,000 Office Expense 602 1,000 600 800 800 Professional Services 45,151 39,000 32,000 39,000 39,000 Professional Development 827 2,500 - 2,500 2,500 Travel & Conferences 26,604 43,200 35,000 37,750 39,960 Supplies & Services Total $ 74,742 $ 168,760 $ 147,560 $ 83,320 $ 225,230 2-Year (FY20 & FY21) Operating Budget Financial Summaries 22 | P a g e Administration Department FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Salary Related Expenses Salaries $ 658,453 $ 804,167 $ 880,508 $ 995,796 $ 1,029,791 Fringe Benefits 305,714 260,195 378,417 357,433 354,156 Unemployment Insurance 807 2,000 10,938 2,500 2,500 Overtime 7,977 6,384 10,604 6,925 7,167 OPEB & CalPERS UAL/GASB Adj. 756,882 1,004,254 1,290,213 1,379,863 1,428,027 Mandatory Benefits 57,323 81,750 120,037 92,449 100,780 Salary Related Total $ 1,787,157 $ 2,158,750 $ 2,690,716 $ 2,834,966 $ 2,922,421 Supplies & Services Communications $ 46,864 $ 73,700 $ 73,700 $ 140,700 $ 140,700 Contractual Services 1,471 6,500 6,500 6,500 6,500 Dues & Memberships 67,593 70,380 70,900 70,940 73,535 Fees & Permits - - - - - Insurance 733 1,090 750 985 700 District Meetings and Events 9,943 13,250 11,300 11,200 11,200 Materials - - - - - Non-Capital Equipment 7,631 3,700 3,700 3,500 3,500 Office Expense 4,690 2,800 2,200 1,450 1,450 Professional Services 332,166 250,000 258,278 280,000 280,000 Professional Development 203 3,600 2,500 3,750 3,000 Travel & Conferences 19,682 38,990 28,780 39,790 42,010 Supplies & Services Total $ 490,976 $ 464,010 $ 458,608 $ 558,815 $ 562,595 2-Year (FY20 & FY21) Operating Budget Financial Summaries 23 | P a g e Engineering Department FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Salary Related Expenses Salaries $ 757,827 $ 1,073,390 $ 689,805 $ 1,103,765 $ 1,148,720 Fringe Benefits 122,058 210,788 186,356 208,980 235,519 Overtime 246 4,997 3,590 3,860 4,015 Mandatory Benefits 104,463 109,845 113,901 113,901 124,097 Salary Related Total $ 984,593 $ 1,399,020 $ 982,230 $ 1,430,505 $ 1,512,351 Supplies & Services Communications $ 776 $ 400 $ 200 $ 800 $ 800 Contractual Services 70,146 20,000 3,000 10,240 10,240 Data Processing - 26,400 42,000 40,000 40,000 Dues & Memberships 6,913 9,120 2,609 6,000 6,000 Fees & Permits 61,266 7,558 8,558 12,785 12,926 Materials 5,274 - - - - District Meetings and Events 685 1,000 1,000 1,500 1,500 Maintenance 247 1,500 1,210 1,500 1,500 Non-Capital Equipment 234 1,100 21,336 1,000 1,000 Office Expense 1,736 5,600 1,551 1,600 1,600 Professional Services 146,661 100,000 45,368 165,000 255,000 Professional Development 1,321 6,200 6,642 11,500 8,500 Travel & Conferences 3,546 5,200 4,958 8,000 8,000 Supplies & Services Total $ 298,805 $ 184,078 $ 138,432 $ 259,925 $ 347,066 2-Year (FY20 & FY21) Operating Budget Financial Summaries 24 | P a g e Finance Department FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Salary Related Expenses Salaries $ 1,039,432 $ 848,188 $ 892,265 $ 958,646 $ 999,334 Fringe Benefits 243,849 201,490 177,325 195,983 222,244 Overtime 3,492 9,558 9,448 12,885 13,392 Mandatory Benefits 104,442 86,588 91,045 101,381 111,484 Salary Related Total $ 1,391,215 $ 1,145,824 $ 1,170,083 $ 1,268,895 $ 1,346,453 Supplies & Services Communications $ 95,780 $ 94,497 $ 95,814 $ 97,095 $ 99,525 Contractual Services 74,991 80,897 82,764 81,687 81,862 Data Processing - - - - - Dues & Memberships 535 690 585 940 970 Fees & Permits 154,783 159,907 159,973 167,995 168,050 Insurance 500 600 500 600 625 Materials 3,551 - - - - District Meetings and Events 1,022 1,100 1,486 1,235 1,250 Maintenance 611 300 300 300 300 Non-Capital Equipment 375 1,600 1,100 3,250 1,250 Office Expense 9,324 9,400 9,648 9,875 9,875 Professional Services 56,366 60,300 51,369 88,500 128,900 Professional Development 6,377 9,590 8,940 10,345 8,245 Travel & Conferences 3,490 4,000 4,822 4,250 4,770 Uncollectible Accounts 4,610 3,000 4,268 4,500 5,100 Supplies & Services Total $ 412,315 $ 425,881 $ 421,569 $ 470,572 $ 510,722 2-Year (FY20 & FY21) Operating Budget Financial Summaries 25 | P a g e Human Resources Department FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Salary Related Expenses Salaries $ 504,026 $ 564,294 $ 580,775 $ 513,981 $ 542,241 Fringe Benefits 104,776 130,318 108,024 110,234 121,912 Overtime - 6,572 1,310 5,592 5,935 Mandatory Benefits 51,261 55,035 55,199 52,813 58,758 Salary Related Total $ 660,064 $ 756,219 $ 745,308 $ 682,619 $ 728,846 Supplies & Services Communications $ 1,639 $ 2,500 $ 1,524 $ 3,000 $ 3,500 Contractual Services 15,486 29,935 20,165 30,380 32,130 Data Processing - - - - - Dues & Memberships 8,196 7,570 7,474 6,115 7,215 Insurance 268,003 301,500 301,728 325,800 336,800 Materials 1,211 2,100 2,000 - - District Meetings and Events 14,096 24,100 18,381 24,200 2,500 Non-Capital Equipment 7,573 5,800 7,495 12,700 3,200 Office Expense 1,412 1,650 2,,389 450 450 Professional Services 95,068 64,500 35,902 65,700 65,500 Professional Development 18,501 33,850 18,478 21,700 23,700 Travel & Conferences 8,184 13,850 11,484 14,350 19,850 Supplies & Services Total $ 439,369 $ 487,355 $ 427,020 $ 504,395 $ 517,545 2-Year (FY20 & FY21) Operating Budget Financial Summaries 26 | P a g e Information Technology Department FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Salary Related Expenses Salaries $ 506,040 $ 353,247 $ 335,151 $ 342,242 $ 357,632 Fringe Benefits 91,108 73,355 55,013 53,931 66,303 Overtime 9,393 9,950 4,401 8,778 9,023 Mandatory Benefits 55,454 40,748 37,392 38,752 42,727 Salary Related Total $ 662,086 $ 477,300 $ 431,957 $ 443,703 $ 475,686 Supplies & Services Communications $ - $ - $ - $ - $ - Contractual Services 114,927 131,400 131,400 122,400 115,400 Data Processing 213,812 221,050 221,030 265,450 239,300 Dues & Memberships 716 80 80 - - Materials 12,209 8,500 9,472 8,500 8,500 District Meetings and Events 106 800 800 800 800 Maintenance 11,075 12,350 12,350 19,700 32,440 Non-Capital Equipment 52,789 46,750 46,750 47,250 45,650 Office Expense 11,821 7,600 7,600 7,600 7,600 Professional Services 19,486 9,000 81,825 9,000 9,000 Professional Development 4,252 3,000 5,808 2,000 2,000 Travel & Conferences 10,517 9,700 9,700 10,400 10,400 Utilities 88,508 82,700 82,700 92,750 62,700 Supplies & Services Total $ 540,218 $ 532,930 $ 609,515 $ 585,850 $ 533,790 2-Year (FY20 & FY21) Operating Budget Financial Summaries 27 | P a g e Operations Department FY18 Actual FY19 Budget FY19 Forecast FY20 Budget FY21 Budget Salary Related Expenses Salaries $ 2,946,132 $ 3,408,064 $ 3,196,509 $ 3,524,912 $ 3,657,998 Fringe Benefits 738,719 959,575 728,793 879,697 994,198 Standby – Day Pay 32,050 32,150 32,298 32,150 32,150 Overtime 212,587 189,631 302,643 271,978 274,363 Mandatory Benefits 395,988 458,506 402,944 491,438 532,719 Salary Related Total $ 4,325,476 $ 5,047,926 $ 4,663,187 $ 5,200,175 $ 5,491,428 Supplies & Services Communications $ - $ - $ - $ - $ - Contractual Services 148,709 237,000 188,965 276,274 279,174 Data Processing 31,455 35,000 35,000 40,000 40,000 Dues & Memberships 250 330 145 525 535 Fees & Permits 46,764 112,988 141,887 125,000 125,200 Materials 803,860 676,736 998,114 1,004,900 1,025,500 District Meetings and Events 2,236 3,000 3,375 5,700 6,120 Maintenance 502,017 590,450 667,415 714,800 697,800 Non-Capital Equipment 69,627 87,500 88,288 141,620 106,620 Office Expense 13,422 15,250 14,445 14,730 14,600 Professional Services 13,367 30,000 30,000 95,000 95,000 Professional Development 7,049 19,500 20,574 35,075 31,750 Travel & Conferences 12,185 24,400 12,956 26,100 27,400 Utilities 96,688 100,700 86,607 100,000 100,000 Vehicle Expense 321,118 375,400 370,593 376,700 379,400 Supplies & Services Total $ 2,068,747 $ 2,308,254 $ 2,658,360 $ 2,956,424 $ 2,929,099 ITEM NO. 8.3 AGENDA REPORT Meeting Date: May 28, 2019 Budgeted:Yes Total Budget:$1,600 To:Board of Directors Cost Estimate:$1,600 From:Marc Marcantonio, General Manager Presented By:Rosanne Weston, Engineering Manager Dept:Engineering Prepared By:Bryan Hong, Principal Engineer Subject:Draft 2019 Water Quality Report SUMMARY: Since 1990, California public water utilities have been required to provide annual water quality reports to their customers. This report is also known as the Consumer Confidence Report (CCR) which covers water quality testing and analysis from January to December of the previous calendar year. State and Federal laws require that this annual water quality report be provided to every customer by July 1 to ensure that customers are informed of the quality of their drinking water. STAFF RECOMMENDATION: That the Board of Directors approve the 2019 Water Quality Report and instruct staff to make it available on the District's website pursuant to State and Federal law regarding electronic delivery. DISCUSSION: State and Federal laws require that the District prepare an annual water quality report and make it available to its customers by July 1 of each year. This annual water quality report covers water quality monitoring, testing and analysis conducted from January to December of the previous calendar year. The purpose of this report is to inform customers of the quality of the water they are receiving. Since 2013, State and Federal laws allow electronic delivery of the annual water quality report. As a result, the District will save cost in printing and distribution and will make the report available via the District's website. Hard copies of the report will be available upon request. The District plans to provide information to their customers regarding the availability of the report on the customer water bills for the billing cycles of June and July. In 2018, over 23,000 analyses were conducted to ensure that the water that the District provides met all State and Federal drinking water regulations. In some cases, the District went beyond what is required by State and Federal laws, by providing additional monitoring for contaminants of concern. Staff is pleased to report that the District has never violated any drinking water regulation from both the State and Federal standards. Attached is a draft copy of the District's 2019 Water Quality Report for review and consideration by the Board. PRIOR RELEVANT BOARD ACTION(S): On May 22, 2018, the Board of Directors approved the 2018 Water Quality Report and its distribution. ATTACHMENTS: Name:Description:Type: Yorba_Linda_2019_WQ_Report_FINAL_Web-PDF.pdf Backup Material Backup Material 2019 AERA QUAL11Y EPORT YORBA LINDA WA-, DISTRICT , 0 a DATA FOR 2018 ® 401fr A�. ' H %-�i'�� .�.�:�. � £� � _ � � .. � `_ lI�� �i✓ � �.CSM . ♦ ��' I. Your 2019 WaterQuality Report ince 1990,California public water utilities have been the state and federal regulatory agencies. providing annual Water Quality Reports to their In 2018,we conducted over 23,000 analyses to ensure customers.This year's report, also known as the "Consumer that your water is clean and safe to drink. We are proud to Confidence Report;'covers water quality testing from report that our water system has never violated any water January to December 2018, unless quality standard from both the State otherwise specified. and Federal drinking water The Yorba Linda Water District's regulations. In some cases,the (District) annual Water Quality Report f District goes beyond what is required is prepared in compliance with the by providing additional monitoring for regulations called for in the 1996 contaminants that may have health reauthorization of the Safe Drinking `4 - +� , risks. Water Act (SDWA). The reauthoriza- + �, .� We encourage you to read this tion charged the United States Environ- INN.- ,. report and to contact us with any mental Protection Agency (USEPA) questions you may have. with updating and strengthening the tap water regulatory program. USEPA `5' and the State Water Resources Control Board, Division of Drinking Water(DDW) are the agencies This report contains important information about your drinking responsible for establishing water quality standards. water.Translate it,or speak with someone who understands it. To ensure that your tap water is safe to drink,USEPA and &�9 DDW prescribe regulations that limit the amount of certain Este informe contiene informaci6n muy importante sobre su agua contaminants in water provided by water systems.The U.S. beber.Traduzcalo 6 hable con alquien que to entienda Bien. Food and Drug Administration regulations and California Law also establish limits for contaminants in bottled water ��` � AA that provide the same protection for public health. 0Ao The State and Federal governments require that this ti *—To annual Water Quality Report be N provided to every customer to Questions about your water? Contact us for answers. insure you are informed of the Yorba Linda Water District is an independent special district that provides quality of your water. The District is committed to safeguarding its water and sewer service to most of the City of Yorba Linda and to portions of Anaheim, Brea, Placentia and unincorporated Orange County. water supply and, as in years past, For more information about the District or your water service, please visit our the water delivered to your home website at www.ylwd.com or call (714) 701-3000. meets the standards required by The Yorba Linda Water District Board of Directors' regularly scheduled meetings are held on the second and fourth Tuesday of each month at 6:30 p.m. in the District boardroom located at 1717 E. Miraloma Avenue, Placentia, California 92870. The Quality of Your Water is Our Primary Concern Introduction peroxide.This near-distilled-quality water is then transported to Through drinking water quality testing programs carried out by percolation basins where the GWRS the Orange County Water District(OCWD)for groundwater, Metropolitan Water District of Southern California(MWD)for water naturally filters through sand and treated surface water,and the District for the water distribution gravel to the groundwater basin system,your drinking water is constantly monitored from source to managed by the Orange County Water tap for constituents that are regulated and unregulated. District. 1a The groundwater basin is Sources of Supply approximately 350 square miles in area The District's water supply consists of groundwater from our and lies beneath most of northern and own wells and water imported from Northern California and the central Orange County.The Yorba Linda Water District and more than 20 Colorado River by the Metropolitan Water District of Southern California (MWD). cities and retail water districts pump The source water for our wells is a natural aquifer that is from the groundwater basin to provide water to homes and replenished with water from the Santa Ana River,local rainfall, businesses.Your water source depends on where you live or work imported water,and through the Groundwater Replenishment within the boundaries of our community. System(GWRS).The GWRS is a three step process where the Having multiple sources of water is beneficial for the District's customers. Local groundwater meets all water quality standards Orange County Water District takes highly treated wastewater from and is lower in cost than imported water,which must travel the Orange County Sanitation District and purifies the water hundreds of miles through aqueduct systems. Having more than through a state-of-the-art purification process consisting of micro- filtration,reverse osmosis,and ultraviolet light with hydrogen one source also improves the overall reliability of our water supply. To find out which water source is provided to your home or business,please call the District's main line. You Can Depend On Us Local Groundwater(Chlorin Disinfection) To Deliverualit The District obtains approximately 75%of its water supplies Q Y Water from 11 wells.The water from these wells is blended at the Turn the tap and the water flows,as if by magic. - Highland Reservoir before being served to customers. Or so it seems.The reality is considerably different, The District uses chlorine to disinfect the groundwater as it however.Delivering high-quality drinking water to enters the distribution system. our customers is a scientific and engineering feat that requires considerable effort and talent to ensure the r Imported Water (Chloramine Disinfection) water is always there,always safe to drink. The District obtains the remainder of the water from local whole- Because tap water is highly regulated by state and federal laws,water treatment and distribution Saler Municipal Water District of Orange County(MWDOC). operators must be licensed and are required to MWDOC obtains water from regional supplier Metropolitan Water complete on-the-job training and technical education before becoming District of Southern California (MWD). MWD imports water from a state certified operator. Northern California via the California Aqueduct,and from the Our licensed water professionals have an understanding of a wide Colorado River via the Colorado River Aqueduct.This water is range of subjects,including mathematics,biology,chemistry,physics, treated at MWD's Robert B. Diemer water treatment plant located and engineering.Some of the tasks they complete on a regular basis just north of western Yorba Linda to meet drinking water standards. include: MWD disinfects the water with chloramines,a combination of 6 Operating and maintaining equipment to purify and clarify water; chlorine and ammonia. 4 Monitoring and inspecting machinery,meters,gauges,and operating conditions; The Source of Your Water 6 Conducting tests and inspections on water and evaluating the results; Can Change Throughout the Year 6 Documenting and reporting test results and system operations to In order to maximize the delivery of groundwater,we may change regulatory agencies;and our operating dynamics which would result in a source water 4 Serving our community through customer support,education,and change from import water to groundwater at different times outreach. throughout the year.Since the water sources may vary,you may So,the next time you turn on your faucet,think of the skilled notice a difference in the taste or hardness(mineral content)of professionals who stand behind every drop. the water. However, none of these factors affect the quality and safety of your water. 3- Federal and State WaterQuality Regulations Water Quality Issues that Could Affect Your Health Basic Information About Special Risk Populations Drinking Water Contaminants Some individuals may be more vulnerable The sources of drinking water(both public tap water and bottled to the effects of possible contaminants in water)include rivers,lakes,streams,ponds,reservoirs,springs,and drinking water than the general population. Immuno-compromised persons such as groundwater.As water travels over the surface of the land or through iw _ persons with cancer undergoing chemo- the ground,it dissolves naturally occurring minerals.Water also picks up therapy,persons who have undergone organ t infants some elderly persons,, , TT! substances resulting from the presence transplants of animals or from human activity. persons infected with HIV/AIDS,or persons Drinking water,including bottled water, with other immune system disorders can be may reasonably be expected to contain particularly at risk to infection These persons should seek advice from at least small amounts of some their health care providers about drinking water contaminants.The presence of The USEPA/Center for Disease Control guidelines on appropriate contaminants does not necessarily `�� means to lessen the risks of infection by Cryptosporidium or other indicate that water poses a health risk. microbial contaminants are available from the Safe Drinking Water ..., More information about �� Hotline(1-800-426-4791). contaminants and potential health ,l Fluoride effects can be obtained by calling the ■ USEPA's Safe Drinking Water Hotline(1-800-426-4791). The District does not add fluoride to its groundwater supplies. Naturally occurring Contaminants that may be present in source water include: fluoride is present in the aquifer. _ In 1995,the California Legislature passed • Microbial contaminants,such as viruses and bacteria,which may r a bill mandating that all large water agencies come from sewage treatment plants,septic systems,agricultural fluoridate their supplies,but only if the state livestock operations,and wildlife.Cryptosporidium is a microscopic or"somebody"provided the agencies with organism that,when ingested,can cause diarrhea,fever,and other the funds to do so.To date,the state has not gastrointestinal maladies.The organism comes from animal and/or come up with the funds to implement fluoridation. human waste and may be found in surface(imported)water.A MWD commenced fluoridation of the drinking water it supplies to standard treatment process that includes sedimentation,filtration, Southern California in November of 2007.The District purchases and disinfection can eliminate Cryptosporidium contamination. approximately 25%of its water from MWD.Because of MWD's decision • Pesticides and herbicides that may come from a variety of sources and the District's dual sources of water(groundwater and import),the such as agriculture,urban storm water runoff,and residential uses. District is faced with a situation where some of its customers will receive water fluoridated by MWD,some will receive non-fluoridated water,and • Inorganic contaminants,such as salts and metals that can be some will receive a blend of fluoridated and non-fluoridated water. naturally occurring or result from urban storm water runoff, If you wish to know the approximate level of fluoride in your tap industrial or domestic wastewater water,or specific water service area,please call the Water Quality (1 discharges,oil and gas production, Division at(714)701-3000. mining or farming. Additional information about the fluoridation of drinking water can •Organic chemical contaminants, be found through the following sources: including synthetic and volatile U.S.Centers for Disease Control and Prevention: organic chemicals that are by- www.cdc.gov/fluoridation/ • 1-888-CDC-INFO(1-888-232-4636) products of industrial processes and State Water Resources Control Board,Division of Drinking Water petroleum production,and can also www.waterboards.ca.gov/drinking_water/ come from gas stations,urban storm certlic/drinkingwater/Fluoridation.shtml water runoff,agricultural application American Dental Association and septic systems. http://www.ada.org/en/pu bl ic-progra ms/advocati ng-for-the- • Radioactive contaminants that can be naturally occurring or be the public/fluoride-and-fluoridation/ada-fluoridation-resources result of oil and gas production and mining activities. American Water Works Association: www.awwa.org -4- About Lead in Tap Water If present,elevated levels of lead can cause serious health purpose,such as watering plants. problems,especially for pregnant women and young children. If you are concerned about lead in your water,you Lead in drinking water is primarily from materials and may wish to have your water tested.Information on components associated with service lines and home plumbing. lead in drinking water,testing methods,and steps you The District is responsible for providing safe drinking water, can take to minimize exposure is available from the but cannot control the variety of materials used in customer Safe Drinking Water Hotline or on the web at: plumbing components.When your water has been sitting for www.epa.gov/safewater/lead. sa several hours,you can minimize the potential for lead exposure There are no known lead service lines for potable —�—^-- by flushing your tap for 30 seconds to 2 minutes before using water in the District.Please see chart titled"Lead and water for drinking or cooking.If you do so,you may wish to Copper Action Levels for Residential Taps"on page 7 collect the flushed water and reuse it for another beneficial for more District-specific information. Metropolitan2018 Inorganic Chemicals—Tested in 2018 Aluminum(ppm) 1 0.6 0.124 NO-0.31 No Treatment Process Residue,Natural Deposits Barium(ppm) 1 2 0.117 0.117 No Refinery Discharge,Erosion of Natural Deposits Bromate(ppb) 10 0.1 2 NO-4.7 No Byproduct of Drinking Water Disinfection Fluoride(ppm) 2 1 0.7 0.6-0.9 No Water Additive for Dental Health Secondary Standards*—Tested in 2018 Aluminum(ppb) 200* 600 124 ND—310 No Treatment Process Residue,Natural Deposits Chloride(ppm) 500* n/a 94 92-95 No Runoff or Leaching from Natural Deposits Color(color units) 15* n/a ND ND—1 No Naturally-occurring Organic Materials Odor(threshold odor number) 3* n/a 2 1—4 No Naturally-occurring Organic Materials Specific Conductance(pmho/cm) 1,600* n/a 906 852-961 No Substances that Form Ions in Water Sulfate(ppm) 500* n/a 199 178-220 No Runoff or Leaching from Natural Deposits Total Dissolved Solids(ppm) 1,000* n/a 565 523-607 No Runoff or Leaching from Natural Deposits Unregulated Chemicals—Tested in 2018 Alkalinity,total as CaCO3(ppm) Not Regulated n/a 106 99-114 n/a Runoff or Leaching from Natural Deposits Boron(ppm) NL=1 n/a 0.13 0.13 n/a Runoff or Leaching from Natural Deposits Calcium(ppm) Not Regulated n/a 58 52-65 n/a Runoff or Leaching from Natural Deposits Hardness,total as CaCO3(ppm) Not Regulated n/a 240 219-262 n/a Runoff or Leaching from Natural Deposits Hardness,total(grains/gallon) Not Regulated n/a 14 13—15 n/a Runoff or Leaching from Natural Deposits Magnesium(ppm) Not Regulated n/a 23 21—25 n/a Runoff or Leaching from Natural Deposits pH(pH units) Not Regulated n/a 8.1 8.1 n/a Hydrogen Ion Concentration Potassium(ppm) Not Regulated n/a 4.4 4.0-4.8 n/a Runoff or Leaching from Natural Deposits Sodium(ppm) Not Regulated n/a 92 86-98 n/a Runoff or Leaching from Natural Deposits Total Organic Carbon(ppm) TT n/a 2.4 2.1—2.7 n/a Various Natural and Man-made Sources ppb=parts per billion;ppm=parts per million;pmho/cm=micromhos per centimeter;ND=not detected; MCL—Maximum Contaminant Level;(MCLG)=federal MCL Goal;PHG=California Public Health Goal; NL=Notification Level;n/a=not applicable;TT=treatment technique *Chemical is regulated by a secondary standard. Turbidity—combined filter effluent Treatment Turbidity TT Typical Source Metropolitan Water District Dienner Filtration Plant Technique Measurements Violation? of Chemical Highest single turbidity measurement 0.3 NTU 0.07 No Soil Runoff 2)Percentage of samples less than 0.3 NTU 95% 100% No Soil Runoff Turbidity is a measure of the cloudiness of the water,an indication of particulate matter,some of which might include harmful microorganisms. NTU=nephelometric turbidity units Low turbidity in Metropolitan's treated water is a good indicator of effective filtration.Filtration is called a"treatment technique"(TT). A treatment technique is a required process intended to reduce the level of chemicals in drinking water that are difficult and sometimes impossible to measure directly. Unregulated Chemicals Requiring Monitoring Notification Average Range of Most Recent Chemical Level PHG Amount Detections Chromium,Total(ppb)** MCL=50 MCLG=100 0.5 0.5 2014 Germanium(ppb) n/a n/a 0.1 ND-0.4 2018 Manganese(ppb)*** 50* n/a 1.9 0.8-2.7 2018 Molybdenum,Total(ppb) n/a n/a 5 5 2014 Strontium,Total(ppb) n/a n/a 1,070 1,070 2014 Vanadium,Total(ppb) 50 n/a 2.3 2.3 2014 **Total chromium is regulated with an MCL of 50 ppb but was not detected,based on the detection limit for purposes of reporting of 10 ppb. Total chromium was included as part of the unregulated chemicals requiring monitoring. ***Manganese is regulated with a secondary standard of 50 ppb but was not detected,based on the detection limit for purposes of reporting of 20 ppb. Manganese was included as part of the unregulated chemicals requiring monitoring. -5- 2018 Yorba Linda Water District Groundwater Quality li Average Range of MCL Most Recent Typical Source Chemical MCL (Ii Amount Detections Date of Chemical Radiologicals Gross Alpha(pCi/L) 15 (0) <3 ND-4.47 No 2018 Erosion of Natural Deposits Uranium(pCi/L) 20 0.43 6.87 4.91-9.72 No 2018 Erosion of Natural Deposits Inorganic Chemicals Arsenic(ppb) 10 0.004 4.3 NO-6.4 No 2018 Erosion of Natural Deposits Barium(ppm) 1 2 <O.1 ND-0.11 No 2018 Erosion of Natural Deposits Fluoride(ppm) 2 1 0.49 0.41-0.53 No 2018 Erosion of Natural Deposits Nitrate(ppm as N) 10 10 1.74 0.93-2.3 No 2018 Fertilizers,Septic Tanks Nitrate+Nitrite(ppm as N) 10 10 1.75 0.93-2.31 No 2018 Fertilizers,Septic Tanks Secondary Standards* Chloride(ppm) 500* n/a 124 113-140 No 2018 Erosion of Natural Deposits Color(color units) 15* n/a 0.3 ND-3 No 2018 Naturally-occurin9 organic materials Foaming Agents(MBAS)(ppb) 500* n/a 0.5 ND-20 No 2018 Municipal and Industrial Waste Discharge Manganese(ppb) 50* n/a <20 NO-140 No 2018 Erosion of Natural Deposits Specific Conductance(pmho/cm) 1,600* n/a 1,089 1,010-1,180 No 2018 Erosion of Natural Deposits Sulfate(ppm) 500* n/a 145 118-167 No 2018 Erosion of Natural Deposits Total Dissolved Solids(ppm) 1,000* n/a 677 592-748 No 2018 Erosion of Natural Deposits Turbidity(NTLI) 5* n/a <O.1 NO-0.7 No 2018 Erosion of Natural Deposits Unregulated Chemicals Alkalinity,total(ppm as CaCO3) Not Regulated n/a 230 212-262 n/a 2018 Erosion of Natural Deposits Bicarbonate(ppm as HCO3) Not Regulated n/a 280 258-319 n/a 2018 Erosion of Natural Deposits Boron(ppm) NIL=1 n/a 0.27 0.25-0.29 n/a 2018 Erosion of Natural Deposits Bromide(ppm) Not Regulated n/a 0.14 ND-0.21 n/a 2018 Erosion of Natural Deposits Calcium(ppm) Not Regulated n/a 96 75.3-114 n/a 2018 Erosion of Natural Deposits Hardness,total(grains/gal) Not Regulated n/a 19 16-22 n/a 2018 Erosion of Natural Deposits Hardness,total(ppm as CaCO3) Not Regulated n/a 329 268-383 n/a 2018 Erosion of Natural Deposits Magnesium(ppm) Not Regulated n/a 21.7 18.9-24.5 n/a 2018 Erosion of Natural Deposits Perfluorooctane Sulfonic Acid(ppt) Not Regulated n/a 0.033 0.028-0.038 n/a 2018 Man-made Sources PerfluorooctanicAcid(ppt) Not Regulated n/a 0.022 0.020-0.024 n/a 2018 Man-made Sources pH(pH units) Not Regulated n/a 7.7 7.5-7.9 n/a 2018 Acidity,hydrogen ions Potassium(ppm) Not Regulated n/a 5.8 4.8-8.7 n/a 2018 Erosion of Natural Deposits Sodium(ppm) Not Regulated n/a 96.8 82.4-107 n/a 2018 Erosion of Natural Deposits Total Organic Carbon(ppm) Not Regulated n/a 0.9 ND-1.79 n/a 2018 Various Natural and Man-made Sources Vanadium(ppb) NIL=50 n/a 4.8 3.3-8.4 n/a 2018 Erosion of Natural Deposits;Industrial Discharge ppt=parts per trillion;ppb=parts-per-billion;ppm=parts-per-million;pCi/L=picoCuries per liter;NTU=nephelometric turbidity units;ND=not detected;n/a=not applicable; <=average is less than the detection limit for reporting purposes;MCL=Maximum Contaminant Level;(MCLG)=federal MCL Goal;PHG=California Public Health Goal; pmho/cm=micromho per centimeter *Contaminant is regulated by a secondary standard to maintain aesthetic qualities(taste,odor,color). Unregulated Chemicals Requiring Monitoring Chemical Notification L. Average Amount Ir Range of Detections Most Recent Sampling Date Bromide(ppm) n/a n/a 0.219 0.204-0.236 2018 Germanium(ppb) n/a n/a 0.3 0.3 2018 Manganese(ppb)** 50* ri 10.8 10.8 2018 Total Organic Carbon(Unfiltered)(ppm) n/a n/a 1.116 0.76-1.83 2018 **Manganese was included as part of the unregulated chemicals requiring monitoring. Table Legend What are water Quality Standards? Measurement Information Drinking water standards established by the USEPA and DOW In order to ensure that tap water is safe to drink,USEPA and DDW prescribe regulations that What is a Water Quality Goal? set limits for substances that may affect consumer health or limit the amount of certain contaminants in water provided by public water systems. In addition to mandatory water quality standards,USEPA and the aesthetic qualities of drinking water.The chart in this report The tables list all the drinking water contaminants that the District detected above the reporting DDW have set voluntary water quality goals for some contaminants. shows the following types of water quality standards: limits during the 2018 calendar year. Water quality goals are often set at such low levels that they are not .Maximum Contaminant Level(MCL):The highest level of a The presence of these contaminants in the water does not necessarily indicate that the water poses achievable in practice and are not directly measurable.Nevertheless, contaminant that is allowed in drinking water.Primary MCLs a health risk.Unless otherwise noted,the data presented in this table is from testing done for these goals provide useful guidance and directions for water are set as close to the PHGs(or MCLGs)as is economically the period January 1 through December 31,2018.The DDW requires monitoring for certain management practices.The chart in this report includes three types and technologically feasible, contaminants less often than every year because the concentrations of these contaminants are of water quality goals: 6 Maximum Residual Disinfectant Level(MRDL):The level not expected to vary significantly from year to year.Thus,some of the data,though representative of current water quality,is more than one year old.The District contracts with •Maximum Contaminant Level Goal(MCLG):The level of a of a disinfectant added for water treatment that may not be state certified,independent laboratories to perform most of the District's water quality testing. contaminant in drinking water below which there is no known or exceeded at the consumer's tap. expected risk to health.MCLGs are set by the USEPA. .Secondary MCLs are set to protect the odor,taste,and How are Contaminants Measured? .Maximum Residual Disinfectant Level Goal(MRDLG):The level appearance of drinking water. • Parts per million(ppm)or t Parts per billion(ppb)or • Parts per trillion(ii or of a disinfectant added for water treatment below which there is .Primary Drinking Water Standard:MCLS for contaminants milligrams per liter(mg/L) micrograms per liter Ili nanograms per liter(ng/L) no known or expected risk to health.MRDLGs are set by USEPA. that affect health along with their monitoring and reporting What Do the Abbreviations Represent? .Public Health Goals(PHG):The level of a contaminant in requirements and water treatment requirements. •pCi/L=picoCuries per liter .ND=not detected drinking water below which there is no known or expected risk to 6 Regulatory Action Level(AL):The concentration of a .NTU=nephelometric turbidity units .n/a=not applicable health.PHGs are set by the California Environmental Protection contaminant,which,if exceeded,triggers treatment or other .TON=Threshold Odor Number 4 NL=Notification Level Agency-Office of Environmental Health Hazard Assessment. requirements that a water system must follow. .pmho/cm=micromhos per centimeter 6- " ' / \ 2018 Yorba Linda Water District Distribution System Water Quality Range of '-L Typical Source Type MCL Average • • Detections Disinfectant Residual and Disinfection By-Products Chlorine Residual(ppm) (4/4) 1.45 0.11-2.48 No Disinfectant Added for Treatment Total Trihalomethanes(ppb) 80 23 15-28 No Byproducts of Chlorine Disinfection Haloacetic Acids(ppb) 60 10 3.3-8.4 No Byproducts of Chlorine Disinfection Aesthetic Quality Color(color units) 15* ND NO No Naturally-occuring organic materials Odor(threshold odor number) 3* ND NO No Naturally-occuring organic materials Turbidity(NTU) 5* 0.14 ND—1.90 No Erosion of natural deposits Eight locations in the distribution system are tested quarterly for total trihalomethanes and haloacetic acids.Thirty-seven locations are tested monthly for color,odor and turbidity. MRDL=Maximum Residual Disinfectant Level;MRDLG=Maximum Residual Disinfectant Level Goal;<=detected but average is less than the reporting limit; NTLI=nephelometric turbidity unit;ND=not detected *Chemical is regulated by a secondary standard to maintain aesthetic qualities(color,odor,and taste). Microbiological MCL MCLG Highest Monthly Positive Samples MCL Violation? Typical Source of Contaminant Total Coliform Bacteria 5.0% 0 4.7% No Naturally present in the environment No more than 5.0%of the monthly samples may be positive for total coliform bacteria. The occurrence of 2 consecutive total coliform positive samples,one of which contains fecal coliform/E.coli,constitutes an acute MCL violation. Lead and Copper Action Action Level Public F goth Percentile Sites Exceeding AL AL 1W Typical Source [AL) Health Goal Value T Number of Sites Violation? of Chemical Lead(ppb) 15 0.2 NO 0/67 No Internal corrosion of household water plumbing systems; discharges from industrial manufacturers; erosion of natural deposits Copper(ppm) 1.3 0.3 0.5 0/67 No Internal corrosion of household water plumbing systems; discharges from industrial manufacturers; erosion of natural deposits Every three years,at least 37 residences are tested for lead and copper at-the-tap.The most recent set of samples were collected in August 2018. Lead was detected in 5 homes;none exceeded the Action Level.Copper was detected in 58 homes;none exceeded the Action Level. The regulatory Action Level is the concentration at which,if exceeded in more than ten percent of the homes tested,triggers treatment or other requirements that a water system must follow. The Yorba Linda Water District complied with the lead and copper Action Levels. In 2018,12 schools submitted a request to be sampled for lead. Unregulated Chemicals Requiring Monitoring in the Distribution System •- Date Bromochloroacetic Acid(ppb) n/a n/a Average 5.5 3.7-7.8 2018 Bromodichloroacetic Acid(pppb) n/a n/a 2.2 1.8-2.7 2018 ChlorodibromoaceticAcid(ppb) n/a n/a 4.3 3.1-5 2018 Dibromoacetic Acid(ppb) n/a n/a 8 5.5-9.7 2018 Dichloroacetic Acid(ppb) n/a MCLG=0 2.1 1.7-3.4 2018 Tribromoacetic Acid(ppb) n/a n/a 4.8 3.7-5.1 2018 Trichloroacetic Acid(ppb) n/a MCLG=20 0.61 0.5-1 2018 Source Water Assessments Imported(MWD)Water Assessment Groundwater Assessment Every five years,MWD is required by DDW to examine Vulnerability assessments of potential sources of contamination for Wells 20 and 21 were conducted in June 2011 and June possible sources of drinking water contamination in its 2014,respectively.The groundwater sources are considered most vulnerable to the following activities not associated with detected State Water Project and Colorado River source waters. contaminants:chemical/petroleum processing/storage facilities;historic gas stations;metal plating/finishing/fabricating plants; The most recent watershed sanitary surveys of its automobile repair shops;furniture repair and manufacturing;junk/scrap/salvage yards;machine shops;NPDES/WDR permitted source water supplies from the discharges;photo processing/printing;recreational area surface water use;sewer collection systems;oil wells;gas stations; Qp5\tNN WgTFga Colorado River was updated in plastic/synthetic producers;above ground storage tanks;artificial recharge projects using non-potable water;car 2015 and the State Water washes;construction/demolition staging areas;dredging;hardware/lumber/part stores;parking lots;transportation Project was updated in 2016. corridors;water supply wells;body shops,automobile repair shops;electrical/electronic manufacturing; Y ^ Water from the Colorado fleet/truck/bus terminals;dry cleaners;appliance/electronic repair;medical/dental offices/clinics;office buildings; River is considered to be most surface water;decommissioned inactive underground storage tanks;upgraded and/or registered underground s°GT�FaN cn��F�Qa`p vulnerable to contamination from storage tanks;monitoring wells;hospitals,and parks. recreation,urban/stormwater Vulnerability assessments of potential sources of contamination for Wells 19 and 18 were completed in May runoff,increasing urbanization in the 2004 and September 2005,respectively.The groundwater sources are considered most vulnerable to the following watershed,and wastewater.Water supplies from Northern activities not associated with detected contaminants:gas stations;dry cleaners;metal plating/finishing/fabricating plants; California's State Water Project are most vulnerable to plastic/synthetic producers;underground injection of commercial/industrial discharges;underground storage tanks;agricultural contamination from urban/stormwater runoff,wildlife, drainage;fertilization,pesticide and herbicide application;automobile body and repair shops;sewer collection systems;food agriculture,recreation,and wastewater. processing,and chemical/petroleum processing/storage. USEPA also requires MWD to complete one Source Vulnerability assessments of potential sources of contamination for Wells 11 and 15 were completed in April 2003.These Water Assessment(SWA)that utilizes information groundwater sources are considered most vulnerable to the following activities not associated with detected contaminants: collected in the watershed sanitary surveys.MWD chemical/petroleum processing/storage;metal plating/finishing/fabricating;and plastics/synthetics production. completed its SWA in December 2002.The SWA is used The District completed an assessment of its Wells 1,5,7,10,and 12 in January 1999.The wells are considered most vulnerable to evaluate the vulnerability of water sources to con- to contaminants produced by the following activities:gas stations;dry cleaners;metal plating/finishing/fabricating plants; tamination and helps determine whether more protective plastic/synthetic producers;underground injection of commercial/industrial discharges;underground storage tanks;agricultural measures are needed. drainage;fertilization,pesticide and herbicide application;automobile-body and repair shops;and chemical/petroleum A copy of the most recent summary of either Watershed processing/storage. Sanitary Survey or the SWA can be obtained by calling A copy of the complete assessment is available at State Water Resources Control Board,Division of Drinking Water at MWD at(800)CALL-MWD(225-5693). 2 MacArthur Place,Suite 150,Santa Ana,California 92707. 7- • Total Coliform Rule systems that exceed a specified frequency of total coliform occurrences are This Consumer Confidence Report(CCR)reflects changes in required to conduct an assessment to determine if any sanitary defects drinking water regulatory requirements instituted during 2016. exist.If found,these must be corrected by the water system. All water systems are required to comply with the Arsenic state Total Coliform Rule.Effective April 1,2016,all water systems are also required to comply with the While your drinking water meets the federal and federal Revised Total Coliform Rule. state standard for arsenic,it does contain low levels The new federal rule protects public health by of arsenic.The arsenic standard balances the current ensuring the integrity of the drinking water understanding of arsenic's possible health effects distribution system by monitoring for the presence against the costs of removing arsenic from drinking of microbials(i.e.,total coliform and E.coli bacteria).The water.The U.S.Environmental Protection Agency continues to research the USEPA anticipates greater public health protection as the new health effects of low levels of arsenic,which is a mineral known to cause rule requires water systems that are vulnerable to microbial cancer in humans at high concentrations and is linked to other health effects contamination to identify and resolve potential issues.Water such as skin damage and circulatory problems. i How to Read Your Residential Water Meter Your water meter is usually located between the O Low-Flow Indicator—The low flow indicator will spin if any sidewalk and curb under a cement cover. water is flowing through the meter. 0 Remove the cover by inserting a screwdriver in the p Sweep Hand—Each full revolution of the sweep hand 9 © 1 hole in the lid and then carefully lift the cover. indicates that one cubic foot of water(7.48 gallons) 10 18 19 15 M The meter reads straight across,like the odometer has passed through the meter.The markings at the 8 CUBIC FEET 2 on your car.Read only the white numbers(0895). outer edge of the dial indicate tenths and hundredths 0 If you are trying to determine if you have a leak, of one cubic foot. 7 3 turn off all the water in your home,both indoor and © Meter Register—The meter register is a lot like the © WATER outdoor faucets,and then check the red or black odometer on your car. The numbers keep a running 6 METER 4 triangular dial for any movement of the low-flow total of all the water that has passed through the meter. 5 indicator.If there is movement,that indicates a leak The register shown here indicates that 89,505 cubic feet of between the meter and your plumbing system. water has passed through this meter. Where Do We Use Water the Most? O Showers&Baths:8% O Toilets:11% Outdoor watering of lawns and gardens makes up approximately 60%of 0Clothes Washers:9% OLeaks:7% home water use.By reducing your outdoor water use—by either cutting 0 Dishwashers:1% 0Faucets:6% back on irrigation or planting more drought tolerant landscaping—you can Data is representative of average consumption; dramatically reduce your overall water use. 4your water usage may vary. Save the most where you use the most:Make your outdoor use efficient. &__� Ir- The _ Where Can You Learn More? _ 1 / 1 There's a wealth of information on the internet about Drinking Water 1 Priority California Quality and water issues in general.Some good sites to begin your own research are: Southern California has an and climate and the need for wise water use must Metropolitan Water District of So.California: www.mwdh2o.com remain a part of everyone's daily lives.Simple water saving acts like the ones California Department of Water Resources: www.water.ca.gov listed here can save countless gallons of water every day. The Water Education Foundation:www.watereducation.org 6 Check your sprinkler system for leaks,overspray,and broken To learn more about Water Conservation&Rebate Information: sprinkler heads and repair promptly.This can save countless gallons www.bewaterwise.com • www.ocwatersmart.com each time you water. And to see the Aqueducts in action,checkout these two videos: • Water plants in the early morning.It reduces evaporation and ensures Wings Over the State Water Project: youtu.be/8A1v1Rr2neU deeper watering. Wings Over the Colorado Aqueduct: youtu.be/KipMQh5tOf4 • Plug the sink instead of running water to rinse your razor or wet your tooth brush.This can save upwards of 300 gallons of water a month. Yorba Linda Water District 1717 E Miraloma Avenue Placentia,California 92870 (714)701-3000 www.ylwd.com ITEM NO. 8.4 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Prepared By:Andrew B. Gagen, General Counsel Subject:Formation of Assessment District to Finance the Conversion of Customer Private Septic Systems to the District's Public Sewer System SUMMARY: District customers have inquired about how the District may assist with funding or financing the cost to disconnect from their private septic systems and connect to the District’s public sewer system. California law provides for two primary funding and financing mechanisms to do so, which are known as Community Facilities Districts (CFDs) and Assessment Districts (ADs). Rather than commit a significant amount of District resources (time and money) to one mechanism over the other, District staff recommends a pilot program to convert customer septic systems to public sewer systems, which will (1) confirm whether an AD versus a CFD is a better fit, (2) determine the level of community interest, (3) evaluate program costs, and (4) evaluate resource requirements (District and consultants). After completion of this pilot program the District can decide whether to continue the conversion process via an AD, switch to a CFD funding/financing mechanism, or use neither mechanism. STAFF RECOMMENDATION: That the Board of Directors direct staff to initiate the formation of an Assessment District as a pilot program to convert customer private septic systems to the District’s public sewer system. DISCUSSION: California law provides for two primary funding and financing mechanisms to help pay for costs, among other programs and projects, to convert from private septic systems to public sewer systems. These two mechanisms are known as Community Facilities Districts (CFDs) and Assessment Districts (ADs). CFDs and ADs are creatures of statutes and their respective statutory language (and related Prop 13 and Prop 218 requirements) offer advantages and disadvantages regarding this financial assistance. Advantages include enabling customers to connect to the District’s sewer system using a more affordable funding/financing mechanism; and providing the option for customers to prepay their portion of the assessment/tax to avoid having a lien recorded against their property/ A disadvantage presented by CFDs and ADs is the inability to fund/finance either the Orange County Sanitation District connection fee or the cost to install the private sewer lateral that connects the home to the District’s public sewer main. Moreover, it is unclear, but General Counsel does not believe either mechanism can fund/finance the removal of septic tanks. However, these funding/financing shortfalls may be backfilled by grants or other loan programs that allow the customer to finance these costs over a long period of time at a relatively low interest rate – just like a municipal bond secured by either the unpaid taxes or assessments. The determination of whether a CFD or AD is more appropriate depends on a few factors, but most importantly depends on the number of customers interested in this conversion process. Another important factor is whether the neighborhood to be converted is a private street and whether there are public easements in the private street. To address these factors and disadvantages, it is recommended that the District first prepare Local Goals and Policies. The Local Goals and Policies will act as a guidebook for the AD pilot program. After completion of the pilot program the District can decide whether to continue the conversion process via an AD, switch to a CFD funding/financing mechanism, or use neither mechanism. STRATEGIC PLAN: G1 2B - Evaluate feasibility of providing additional wastewater services within the region. ATTACHMENTS: Name:Description:Type: CFD_v_AD_Presentation.pdf Backup Material Backup Material CONVERTING FROM PRIVATE SEPTIC SYSTEMS TO PUBLIC SEWER SYSTEMS Community Facilities District v. Assessment District Presented By: and Rosanne Weston 05/28/2019 1Yorba Linda Water District KIDMAN GAGEN LAWLLP Water | Environment | Government Recommendation 05/28/2019 2Yorba Linda Water District YLWD Goals re: Septic Systems 1.Protect public health and environment 2.Allow property owners to finance costs of conversion over a long period of time at a low governmental interest rate 3.Assist property owners to comply with state and local laws/policies (i.e. “200 foot” rule) •Consistent with Our Mission: YLWD will provide reliable water and sewer services to protect public health and the environment with financial integrity and superior customer service. 1.Initiate formation of an Assessment District (AD) as a pilot program for converting private septic systems to public sewer systems in order to: a)Confirm that an AD (versus a CFD) is a better fit b)Determine level of community interest c)Evaluate program costs d)Evaluate resource requirements (YLWD and consultants) •After completion of the pilot program the District can decide whether to continue the conversion process via an AD, switch to a CFD, or use neither mechanism Recommendation 05/28/2019 3Yorba Linda Water District Septic Systems 101 05/28/2019 4Yorba Linda Water District This Photo by Unknown Author is licensed under CC BY-SA This Photo by Unknown Author is licensed under CC BY This Photo by Unknown Author is licensed under CC BY-SA PRE-FABRICATED SEPTIC TANK Septic Systems 101 05/28/2019 5Yorba Linda Water District Septic Systems 101 05/28/2019 6Yorba Linda Water District DRAIN FIELD 1.Why Convert from Private Septic Systems to Public Sewer Systems? a)Limited Life Span (25-40 years & $20-40K to replace) b)Protect Groundwater Quality c)Market Value of Property d)CA Plumbing Code/Y.L. City Ordinance/YLWD Rules and Regulations i.Requires property within 200 feet to connect to an “available” public system if septic system fails or planning substantial home improvement Septic Systems 101 05/28/2019 7Yorba Linda Water District 2. What are the Homeowner Costs to Convert from Private Septic Systems to Public Sewer Systems? a)Proximity of Public Sewer System to Property i.If not nearby, homeowner responsible for extending public sewer main to property ii.Danita Lane Example: Cost to extend the sewer main is approximately $350,000 Septic Systems 101 05/28/2019 8Yorba Linda Water District b)Construction of Sewer Lateral from Residence to Public Sewer i. between $1,000 and $5,000 c)O.C. Sanitation Connection Fee i. between ~$4,000 (3 bedroom) to ~$6,000 (5 bedroom) d)Septic Tank Removal i. between $10,000 and $15,000 Septic Systems 101 05/28/2019 9Yorba Linda Water District Public Sewer System 05/28/2019 10Yorba Linda Water District 3. How to Fund/Finance Homeowner Costs to Convert from Private Septic Systems to Public Sewer System? a)Developer i.Developer needs to build a sewer through an existing neighborhood to connect to an undeveloped area b)Neighbor(s) Pool Private Funds c)SWRCB Mini-Loan Program? Other Local/County/State Loan Programs? Grants? d)Statutory Finance Mechanisms Via Sponsoring Agency i.Community Facilities Districts & Assessment Districts CFD v. AD 05/28/2019 11Yorba Linda Water District Community Facilities District (CFD) Assessment District (AD) Enabling Statutes Mello-Roos Community Facilities Act of 1982 (“CFD Act”) Dozens of statutes, including: •Municipal Improvement Act of 1913 (“1913 Act”) •Improvement Bond Act of 1915 Where can the CFD/AD be formed? •Around a designated (non- contiguous) geographic boundary that coincides with the project •Boundaries may be expanded via future annexations •Project must be constructed on public property (including easements and ROW) •Under 1913 Act, boundaries are fixed once assessment is confirmed 05/28/2019 12Yorba Linda Water District Community Facilities District (CFD) Assessment District (AD) Distinct from the public agency that created it? Yes.No. What can be financed? 1.Facilities owned or operated by a public agency 2.with 5+ years of useful life Examples:streets, utility (sewer) systems, libraries, parks, schools, museums 1.1913 Act authorizes acquisition: a)of property for facilities, b)or construction of facilities; c)of previously constructed public facilities. 2. That are a distinct benefit to the assessed property Examples:numerous and includes sewer systems 05/28/2019 13Yorba Linda Water District Community Facilities District (CFD)Assessment District (AD) Can the CFD/AD finance septic tank removal? •Unclear because CFD Act: (1) requires 5+years of useful life and (2) precludes dismantling buildings, but (3) authorizes removal of hazardous substance •Either way, other financing options may be available (Expanded Use Loan Assessment?) •Unclear if limited ‘public benefit’ exception is applicable to allow removal •Either way, other financing options may be available (Expanded Use Loan Assessment?) Can the CFD/AD finance O.C. San. District connection fees? No, because fee is not a facility owned or operated by public agency with 5+ years of useful life, but other financing may be available: •Expanded Use Loan Assessment? •Finance through OC San. District or YLWD? Not under 1913 Act,because fee is not an acquisition of either property or facilities, or construction of facilities; but other financing may be available (see CFD examples) 05/28/2019 14Yorba Linda Water District Community Facilities District (CFD)Assessment District (AD) Can the CFD/AD finance installation of the private sewer lateral? •No, because such facilities will not be owned and operated by a public agency (YLWD) •No, because must be constructed on public property and only the property benefits from connecting to public system so ‘public benefit exception’ does not apply •However, other financing options may be available (Expanded Use Loan Assessment?) How are the facilities funded or financed? •By levying a Special Tax on property within the CFD and collecting tax until project funded or issuing bonds secured by unpaid Taxes until bond paid off •Reduced Tax continues to fund facility maintenance By levying assessments on the property and collecting payments until project fully funded or issuing bonds secured by the unpaid assessments until bond paid off 05/28/2019 15Yorba Linda Water District Community Facilities District (CFD)Assessment District (AD) How is the Tax/Assessment calculated? Special Tax is based on any “reasonable” basis as determined by the legislative body Assessment is based on the special (versus general) benefit each property receives from the facilities CFD/AD allowed to foreclose on prop for failure to pay? Yes, per statutory authority and covenant to bondholders or, if no bond,contract with property owners; otherwise, ‘gift of public funds’ Yes, per covenant to bondholders or, if no bond, contract with property owners; otherwise, ‘gift of public funds’ Who can initiate formation? (1)May be initiated by the Board; and (2)shall be initiated by written request of two Board members, or (3)Petition signed by (a) 10% of registered voters or (b) property owners of 10% of land area within the proposed CFD. Depends on the assessment statute, but under the 1913 Act: (1)Resolution of the Board, or (2)petition signed by all property owners to be assessed. 05/28/2019 16Yorba Linda Water District Community Facilities District (CFD) Assessment District (AD) How to form a CFD/AD? •Local Goals and Policies required Three Phases: 1.Informal Pre- Formation Process 2.Board Meetings and Public Hearing 3.Election •Local Goals and Policies recommended Typical Steps: 1.Prepare an Engineer’s Report 2.Adopt Resolution to Levy Assessment and record a boundary map of the AD 3.Notice, protest, and hearing under Prop 218 4.Record Notice of Assessment and time period to collect unfinanced assessment 5.Issue bonds (if applicable) 6.Subsequent proceedings by the legislative body (if applicable) 05/28/2019 17Yorba Linda Water District Community Facilities District (CFD) Assessment District (AD) How to form a CFD/AD? continued. . . Informal Pre-Formation Process Negotiations occur between District staff and committee of registered voters to establish: 1.Boundaries 2.The facilities to be financed 3.Cost to construct the facilities 4.The rate and method of apportioning the Special Tax to each taxed property 5.A ballot measure Engineer’s Report 1.Boundaries 2.The facilities to be financed 3.Cost to construct the facilities 4.Method of apportioning the assessment among the assessed prop 5.Assessment roll listing the properties and amount of apportioned assessment 6.Annual administration costs 7.Satisfy Prop 218 ‘benefits’ and ‘proportionality’ requirements 05/28/2019 18Yorba Linda Water District Community Facilities District (CFD)Assessment District (AD) Number of votes required to form a CFD/AD? •A two-thirds majority vote of either registered voters, or if fewer than 12 registered voters, landowners within the proposed CFD. If a majority protest (50% +1) is not received from the property owners, a resolution to establish the AD may be adopted Can the CFD/AD recover costs to administer CFD/AD? Yes.Yes. Can property owners connect to the sewer after CFD/AD formation? Yes, but must pay a ‘catch up’ tax to pay fair share of project at time of connection Yes, if the Assessment Engineer’s methodology accounts for additional property owners Pay -off or prepayment opportunity? Yes, allowed if included in the formula to establish the Special Tax. Yes, automatically allowed by statute. 05/28/2019 19Yorba Linda Water District 1.Existing land use has shifted along Van Buren Boulevard from residential to commercial retail along the street frontage. 2.Existing septic systems failed and/or failing. 3.Proposed CFD allows property owners to better utilize their property to higher and best land uses. 4.Neither the City nor the County have funds to construct the sewer, which is why the CFD structure is being presented. 5.Allows property owners to have access to sewer and spread costs over several years. 6.Voluntary to join initially; option to connect to the sewer later CFD EXAMPLE: Riverside County ‘Van Buren Sewer Project’ 05/28/2019 20Yorba Linda Water District 1.For many years, residents in Yucca Valley used septic systems to dispose of wastewater that leached into the local aquifer. 2.In 2011, RWQCB prohibited discharge from septic systems. 3.HDWD developed a plan to construct a centralized sewer system. a)Over 75 miles of pipe and a new wastewater treatment facility at a cost of $150 million. 4.In 2015, property owners approved formation of an AD to secure a loan from the Clean Water State Revolving Fund that will allow property owners to finance their shared cost of the project over 30 years. AD EXAMPLE: Hi-Desert Water District Sewer Project 05/28/2019 21Yorba Linda Water District Funding Sources: U.S. Bureau of Reclamation Grant –$20 million deducted from the annual assessment SWRCB State Revolving Fund –low interest rate (1%) loan Expanded Use Loan Assessment -similar to AD loan, but at 1.8% interest Expanded Use Loan Grant -applied as a credit towards amount borrowed for private property connection. USDA 504 Grant -up to $7,500, if 62 years or older and meet income eligibility requirements HDWD Sewer Assessment Loan Program -provides financial aid to eligible households AD EXAMPLE: Hi-Desert Water District Sewer Project 05/28/2019 22Yorba Linda Water District !(!(DANITALANE18771 323-442-26 4588 323-442-36 4562 323-442-35 4502 323-442-33 4501 323-442-32 4551 323-442-31 4571 323-442-30 4532 323-442-34 4598 323-442-37 4581 323-442-29 18781 18811 323-442-27 323-442-28 ORIENTE DRAVOCADOAVEAVOLINDADR !(YORBALNPIPER PL !( 0 50 100 200 Feet Legend CFD/AD Parcels Proposed Sewer ?Existing Garvity Sewer POTENTIAL CFD/AD PROJECT #1 •Private road •Waterline and road easements Community Facilities District (CFD)Assessment District (AD) Pay -go or bonds secured by unpaid Taxes Facilities must be owned and operated by public agency •Boundaries may be expanded via future annexations Pay -go or bonds secured by unpaid assessments •Project must be constructed on public property •Boundaries are fixed once assessment is confirmed ?Finance septic tank removal depends on definition of “hazardous substance” × Cannot finance OC San connection fee × Cannot finance installation of the private sewer lateral Other financing options available ?Unclear if AD can finance septic tank removal from private property × Cannot finance OC San connection fee × Cannot finance installation of the private sewer lateral Other financing options available Recommendation 05/28/2019 24Yorba Linda Water District Summary of Comparison Community Facilities District (CFD)Assessment District (AD) Property owners can connect after the CFD has been formed Property owners can connect after the AD has been formed CFD formed if two-thirds majority of either registered voters or landowners AD is formed if majority protest (50% +1) of assessed properties not received •Formation more onerous because of Election •Flexible; living breathing entity that may live on to maintain sewer facilities •Formation less onerous because mail-in ballot, but rigorous Prop 218 requirements •Rigid; AD dies after projects fully funded and all assessments collected or bonds paid off Recommendation 05/28/2019 25Yorba Linda Water District Summary of Comparison 1.Initiate formation of an Assessment District (AD) as a pilot program for converting private septic systems to public sewer systems in order to: a)Confirm that an AD (versus a CFD) is a better fit b)Determine level of community interest c)Evaluate program costs d)Evaluate resource requirements (YLWD and consultants) •After completion of the pilot program the District can decide whether to continue the conversion process via an AD, switch to a CFD, or use neither mechanism Recommendation 05/28/2019 26Yorba Linda Water District Questions? 5/21/2019 Yorba Linda Water District 27 ITEM NO. 9.2 AGENDA REPORT Meeting Date: May 28, 2019 Subject:Overview of Reserve Categories and Funding Levels (Jones) ATTACHMENTS: Name:Description:Type: Reserves_Policy_FY19.pdf Backup Material Backup Material 3010-005 Financial Reserves Policy Page 1 of 5 Policies and Procedures Policy No.: 3010-005 Adoption Method: Resolution No. 18-24 Effective Date: July 1, 2018 Last Revised: August 26, 2017 Prepared By: Delia Lugo, Finance Manager Applicability: District Wide POLICY: FINANCIAL RESERVES 1.0 GENERAL POLICY Maintaining adequate reserves is an essential part of sound financial management. The Yorba Linda Water District Board of Directors realizes the importance of reserves in providing reliable service to its customers, well- maintained infrastructure for current and future customers, financing capital projects as well as capital repair and replacement, and the ability to respond to changing circumstances. Interest derived from reserve balances shall be credited to the reserve account from which it was earned. 2.0 CATEGORIES Yorba Linda Water District (YLWD or District) shall accumulate, maintain and segregate its reserve funds into the following categories:  Board Designated Unrestricted Reserves; and  Board Designated Restricted Reserves. 3.0 SCOPE This policy will assist the Board of Directors in establishing:  Minimum and Maximum Funding Levels, with target goals as a percentage of maximum funding level for each reserve fund, unless otherwise noted;  Requirements for the use of reserve funds; and  Periodic review requirements for each reserve. 4.0 PERIODIC REVIEW Staff and the YLWD Board shall review the reserve balances and targets annually as a part of the annual budget process. The Finance Staff will continue to review all reserve and investment balances monthly, with a quarterly report going to the full Board. Any changes must be approved by resolution of the District Board of Directors. Changes can include, but are not limited to, establishment of additional reserve funds, changes in reserve target levels, and changes in types of reserve categories. 3010-005 Financial Reserves Policy Page 2 of 5 5.0 DESIGNATED UNRESTRICTED AND RESTRICTED RESERVES 5.1 Board Designated Unrestricted Reserves These are reserve funds earmarked for the purpose of funding such items as new capital facilities, repair or replacement of existing facilities, and general operating reserves designated for a specific purpose and use by the Board of Directors. All reserves in this category will be funded at least to the recommended minimum level. As a means for the District to retain its AA and AA+ ratings, the targeted total reserve balance is 365 days in cash at the end of the fiscal year. 5.1.1 Operating Reserve A. Definition and Purpose – Established to cover temporary cash flow deficiencies that occur as a result of timing differences between the receipt of operating revenue and expenditure requirements and unexpected expenditures occurring as a result of doing business. B. Funding Level – The District’s current funding levels will be a minimum of 25% and a maximum of 50% of the annual operating budget, including interest expense, for both the water and sewer funds. In the event this fund falls below its minimum funding level, the Board will act to restore the balance above the minimum funding level within twelve (12) months from the date that the fund fell below the minimum level. Levels Water Sewer Minimum 25% 25% Maximum 50% 50% Levels Water Sewer Minimum $7,593,220 $403,967 Maximum $15,186,441 $807,933 C. Events or Conditions Prompting the Use of the Operating Reserve – This reserve may be utilized as needed to pay outstanding operating expenditures prior to the receipt of anticipated operating revenues. 5.1.2 Emergency Reserve A. Definition and Purpose – Established to provide protection recovery to the District and its customers for losses arising from an unplanned event or circumstance (i.e. fires, earthquakes or financial emergencies). The reserve level combined with YLWD’s existing insurance policies should adequately protect YLWD and its customers in the event of a loss. B. Funding Level – Established at a minimum level equal to 5% and a maximum level equal to 10% of the net capital assets for both the District’s water and sewer funds. In the event this fund falls below its minimum funding level, the Board will 3010-005 Financial Reserves Policy Page 3 of 5 act to restore the balance above the minimum funding level within twelve (12) months from the date that the fund fell below the minimum level. Levels Water Sewer Minimum 5% 5% Maximum 10% 10% Levels Water Sewer Minimum $5,813,701 $1,899,951 Maximum $11,627,401 $3,799,901 C. Events or Conditions Prompting the Use of the Emergency Reserve – This reserve shall be utilized to cover unexpected losses experienced by the District as a result of a disaster or other unexpected loss. Any reimbursement received by the District from insurance companies as a result of a submitted claim shall be deposited back into the reserve as replenishment for the loss. 5.1.3 Capital Replacement Reserve A. Definition and Purpose – Established to provide funding for general use on capital projects as well as capital repair and replacement funding as the District’s infrastructure deteriorates over its expected useful life. In addition, funding is to provide for non-scheduled capital asset repair and replacement and other capital related expenses. B. Funding Level – The minimum target level for each reserve fund is the current Fiscal Year capital budget and the maximum is the current year plus 100% of the subsequent Fiscal Year capital budget. The target levels in these reserve funds will fluctuate depending on the capital improvement plan and timing of the projects. Therefore, no target level will be established. In the event these fund falls below the minimum funding level, the Board will act to restore the balance above the minimum funding level within twelve (12) months from the date that the fund fell below the minimum level. Levels Water Sewer Minimum $6,327,500 $2,000,000 Maximum $14,555,738 $2,280,000 C. Events or Conditions Prompting the Use of the Capital Replacement Reserve – Through the annual budget process, staff shall recommend anticipated asset replacement and capital improvement projects. The Board of Directors shall take action to approve recommended project appropriations from the capital replacement reserve. Should unplanned replacement be necessary during any fiscal year, the Board of Directors may take action to amend the budget and appropriate needed funds as required. 3010-005 Financial Reserves Policy Page 4 of 5 5.1.4 Rate Stabilization Reserve A. Definition and Purpose – Established to assist in smoothing out water rate increases. This reserve is governed by the District’s bond covenants and funds deposited into this reserve are treated as operating revenues in the fiscal year designated by the District and will be treated as such in fiscal years of such designation for the purposes of computing the District's debt service coverage ratio. B. Funding Level – Established at a minimum level of 5% and maximum level of 20% of budgeted water sales for the current fiscal year. The Board of Directors have the option of funding the Rate Stabilization Reserve at a lower level. Levels Water Minimum 5% Maximum 20% Levels Water Minimum $1,600,999 Maximum $6,403,997 C. Events or Conditions Prompting the Use of the Rate Stabilization Reserve – The reserve can be used during any year where other revenues are not sufficient to meet the required debt service coverage ratio or when the maximum level in the reserve is reached. 5.2 Board Designated Restricted Reserves These are funds held to either satisfy limitations set by external requirements established by creditors, grant agencies or law, or to Only be used for Examples include stipulated bond covenants and reserves held with a fiscal agent. 5.2.1 Conservation Reserve A. Definition and Purpose – Established to provide funding for District-wide conservation efforts. B. Funding Level – Funding shall be established as the net result of administrative penalties assessed less allowed expenditures of each fiscal year. Levels Water Minimum $0 Maximum $104,000 C. Events or Conditions Prompting the Use of the Conservation Reserve – This reserve may be used to fund district-wide conservation efforts in relation to, but not limited to, salary and related, maintenance, and material expenses for leak detection, conservation efforts, and other allowable 3010-005 Financial Reserves Policy Page 5 of 5 expenses outside the normal cost of service for each fiscal year. 5.2.2 Employee Liability Reserve A. Definition and Purpose – The purpose is to cover employees’ accrued vacation and other compensatory time and to ensure the complete funding associated with the liability incurred for employees whom have met the requirements necessary for district paid health benefits at retirement. B. Funding Level – Funding for FY19 shall be established at a minimum target level of $273,000. Levels Water Target $273,000 C. Events or Conditions Prompting the Use of the Employee Liabilities Reserve – This reserve may be used in the event that operating funds are not adequate to meet vacation, compensatory and sick time paid out or retiree medical cost obligations within the current year. ITEM NO. 9.4 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Saira Hernandez, Accountant Subject:Budget to Actual Reports for the Month Ending April 30, 2019 DISCUSSION: For the month ending April 30, 2019, staff is presenting Budget to Actual Reports for the District as a whole, as well as the individual water and sewer funds. Cumulative Volumetric Water Revenue, as reported through the month ending April 30, 2019, reflects an average decrease of 11.58% as compared to the prior year for the same reporting period. Commercial and Fire classified customer connections have the lowest decrease in consumption sales of 10.55% as compared to reported results from the prior year. Total Variable Costs results, as reported through the month ending April 30, 2019, reflect a 11.4% decrease when compared to prior year for the same reporting period. The decrease in costs is predominantly reflective of the decrease in total water demand, which as reported, is 10.61% below that of prior year. STRATEGIC PLAN: G2 3B - Regularly assess net position and steps to meet strategic goals. ATTACHMENTS: Name:Description:Type: Financial_Reports_Apr_19.pdf Backup Material Backup Material FY19 Annual Budget YTD Actuals thru April 2019 YTD % of Budget Water Revenue (Residential)16,592,437$ 11,270,013$ 67.92% Water Revenue (Commercial & Fire Det.)1,964,205 1,398,775 71.21% Water Revenue (Landscape/Irrigation)3,863,805 2,806,078 72.62% Service Charges 10,116,528 8,366,758 82.70% Other Operating Revenue 827,887 768,641 92.84% Total Operating Revenue 33,364,861 24,610,265 73.76% Revenue (Non-Operating): Interest 310,000 544,860 175.76% Property Taxes 1,850,000 1,778,243 96.12% Other Non-Operating Revenue 605,346 712,084 117.63% Total Non-Operating Revenue 2,765,346 3,035,187 109.76% Total Revenue 36,130,207$ 27,645,452$ 76.52% Expenses (Operating): Variable Water Costs (G.W., Import & Power) Water-Related Costs 12,247,280$ 8,865,852$ 72.39% Fixed Costs 1,188,085 613,901 51.67% Power-Related Costs 1,358,012 1,396,232 102.81% Variable Water Costs Related Expenses Total 14,793,377 10,875,985 73.52% Salary Related Expenses 9,931,772 7,368,217 74.19% Reduction for Capital Project Labor (279,000) (223,931) 80.26% Salary Related Expenses Total 9,652,772 7,144,286 74.01% Supplies & Services Communications 159,120 128,342 80.66% Contractual Services 475,966 314,348 66.04% Data Processing 285,129 222,937 78.19% Dues & Memberships 82,077 73,616 89.69% Fees & Permits 264,546 224,330 84.80% Board Election 69,750 52,742 75.62% Insurance 281,967 224,685 79.68% Materials 658,714 724,208 109.94% District Activities, Emp Recognition 43,013 26,630 61.91% Maintenance 432,971 377,561 87.20% Non-Capital Equipment 136,294 107,886 79.16% Office Expense 40,343 31,670 78.50% Professional Services 475,804 307,237 64.57% Training 67,188 30,588 45.53% Travel & Conferences 125,279 65,992 52.68% Uncollectible Accounts 2,790 3,244 116.26% Utilities 169,911 152,244 89.60% Vehicle Expenses 316,262 220,893 69.85% Supplies & Services Sub-Total 4,087,123 3,289,153 80.48% Total Operating Expenses 28,533,272 21,309,424 74.68% Expenses (Non-Operating) Other Expense 8,600 1,912 22.24% Total Non-Operating Expenses 8,600 1,912 22.24% Total Expenses 28,541,872$ 21,311,336$ 74.67% Net Revenues 7,588,335 6,334,116 83.47% Less: Debt Service (Principal & Interest)2,738,258 2,738,256 100.00% Less: Committed Capital Expenditures (PayGo)4,484,500 2,871,555 64.03% Transfer to/(from) Reserves 365,577 724,304 198.13% Net Total -$ -$ Yorba Linda Water District Water Enterprise FY19 ProForma - Use of Funds April 2019 1 Yorba Linda Water District Summary Financial Report Water & Sewer Funds For Period Ending April 30, 2019 Annual YTD April YTD YTD Actual Prior Year Prior Year YTD Actual YTD Actual Budget Budget Actual Actual (Under) Over Apr Actual Actual (thru vs vs FY19 FY19 FY19 FY19 YTD Budget FY18 Apr 2018)PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)16,592,437$ 13,486,333$ 830,032$ 11,270,013 (2,216,319)$ 881,005$ 12,647,330$ (1,377,317)$ -10.89% Water Revenue (Commercial & Fire Det.)1,964,205 1,596,506 99,465 1,398,775 (197,731) 109,615 1,563,689 (164,914) -10.55% Water Revenue (Landscape/Irrigation)3,863,805 3,140,501 111,174 2,806,078 (334,423) 148,603 3,236,358 (430,280) -13.30% Water Revenue (Service Charge)10,116,528 8,430,440 838,655 8,366,758 (63,682) 833,155 8,332,247 34,511 0.41% Sewer Charge Revenue 2,229,246 1,857,705 182,211 1,837,440 (20,264) 168,151 1,707,509 129,931 7.61% Locke Ranch Assessments 273,250 270,990 105,909 296,129 25,139 77,001 260,072 36,056 0.00% Other Operating Revenue 894,617 745,514 63,633 821,376 75,862 35,215 656,465 164,911 25.12% Total Operating Revenue:35,934,087 29,527,988 2,231,079 26,796,569 (2,731,418) 2,252,745 28,403,670 (1,607,101) -5.66% Revenue (Non-Operating): Interest 358,000 298,333 118,687 649,213 350,880 66,200 395,369 253,844 64.20% Property Tax 1,850,000 1,772,855 592,929 1,778,243 5,389 480,913 1,658,780 119,463 0.00% Other Non-Operating Revenue 639,846 533,205 51,706 741,941 208,736 13,905 269,604 472,337 175.20% Total Non-Operating Revenue:2,847,846 2,604,393 763,322 3,169,397 565,004 561,018 2,323,753 845,644 36.39% Total Revenue 38,781,933 32,132,381 2,994,401 29,965,966 (2,166,414) 2,813,763 30,727,423 (761,457) -2.48% Expenses (Operating): Variable Water Costs (G.W., Import & Power)14,793,377 12,087,013 945,974 10,875,985 (1,211,028) 1,200,582 12,275,003 (1,399,018) -11.40% Salary Related Expenses 10,784,493 8,184,075 715,510 7,884,311 (299,764) 458,570 7,664,762 219,549 2.86% Supplies & Services 4,571,268 3,661,158 368,653 3,627,536 (33,622) 320,996 3,451,989 175,547 5.09% Total Operating Expenses 30,149,138 23,932,246 2,030,137 22,387,832 (1,544,414) 1,980,148 23,391,754 (1,003,922) -4.29% Expenses (Non-Operating): Interest on Long Term Debt 1,325,785 1,281,780 111,601 1,127,413 (154,367) 115,401 1,141,351 (13,938) -1.22% Other Expense 14,200 11,833 1,806 988,419 976,586 386 (55,236) 1,043,655 -1889.45% Total Non-Operating Expenses:1,339,985 1,293,614 113,407 2,115,832 822,218 115,787 1,086,115 1,029,717 94.81% Total Expenses 31,489,123 25,225,860 2,143,544 24,503,664 (722,196) 2,095,935 24,477,869 25,795 0.11% Net Position Before Capital Contributions 7,292,810 6,906,521 850,857 5,462,302 (1,444,218) 717,828 6,249,554 (787,252) -12.60% Special Item - - - - - (2,205,847) 2,205,847 -100.00% Capital Contributions (Non-Cash - - 38,556 38,556 3,447,318 (3,408,762) 0.00% Transaction GASB 34 Compliant) Net Position Before Depreciation 7,292,810 6,906,521 850,857 5,500,858 (1,405,662) 717,828 7,491,025 (1,990,167) -26.57% Depreciation & Amortization 7,726,142 6,419,952 608,054 6,116,453 (303,498) 630,610 6,210,967 (94,514) -1.52% Total Net Position (433,332)$ 486,570$ 242,803$ (615,595)$ (1,102,164)$ 87,218$ 1,280,058$ (1,895,653)$ -148.09% Capital - Direct Labor (300,000)(250,000)(19,821) (288,287) (38,287) (16,589) (207,956) (80,331) 38.63% (With April 30, 2018 for comparison purposes) 2 Annual YTD April YTD YTD Actual Prior Year Prior YTD YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Apr Actual Actual (thru vs vs FY19 FY19 FY19 FY19 YTD Budget FY18 Apr 2018) PY Actual $PY Actual % Revenue (Operating): Water Revenue (Residential)16,592,437$ 13,486,333$ 830,032$ 11,270,013$ (2,216,320)$ 881,005$ 12,647,330$ (1,377,317)$ -10.89% Water Revenue (Commercial & Fire Det.)1,964,205 1,596,506 99,465 1,398,775 (197,731) 109,615 1,563,689 (164,914) -10.55% Water Revenue (Landscape/Irrigation)3,863,805 3,140,501 111,174 2,806,078 (334,422) 148,603 3,236,358 (430,279) -13.30% Water Revenue (Service Charge)10,116,528 8,430,440 838,655 8,366,758 (63,682) 833,155 8,332,247 34,511 0.41% Other Operating Revenue 827,887 689,905 61,250 768,641 78,735 38,426 593,743 174,897 29.46% Total Operating Revenue:33,364,861 27,343,685 1,940,576 24,610,265 (2,733,419) 2,010,804 26,373,367 (1,763,102) -6.69% Revenue (Non-Operating): Interest 310,000 258,333 90,531 544,860 286,527 50,460 340,485 204,375 60.02% Property Tax 1,850,000 1,772,855 592,929 1,778,243 5,388 480,913 1,658,780 119,463 7.20% Other Non-Operating Revenue 605,346 504,455 51,706 712,084 207,629 12,699 289,319 422,765 146.12% Total Non-Operating Revenue:2,765,346 2,535,643 735,166 3,035,187 499,543 544,072 2,288,584 746,603 32.62% Total Revenue 36,130,207 29,879,328 2,675,742 27,645,452 (2,233,876) 2,554,876 28,661,951 (1,016,499) -3.55% Expenses (Operating): Variable Water Costs (G.W., Import & Power)14,793,377 12,087,013 945,974 10,875,985 (1,211,028) 1,200,582 12,275,003 (1,399,018) -11.40% Salary Related Expenses 9,652,772 7,343,871 636,787 7,144,286 (199,585) 400,652 6,837,428 306,858 4.49% Supplies & Services: Communications 159,120 132,600 13,097 128,342 (4,258) 5,228 109,825 18,518 16.86% Contractual Services 475,966 351,638 38,753 314,348 (37,290) 30,608 327,080 (12,732) -3.89% Data Processing 285,129 219,549 (8,629) 222,937 3,388 16,987 151,400 71,537 47.25% Dues & Memberships 82,077 73,049 283 73,616 567 304 76,811 (3,195) -4.16% Fees & Permits 264,546 220,455 13,520 224,330 3,875 16,747 204,243 20,087 9.84% Board Election 69,750 69,750 52,742 (17,008) - - 52,742 Insurance 281,967 234,973 19,403 224,685 (10,288) 21,242 207,693 16,991 8.18% Materials 658,714 548,928 73,392 724,208 175,280 39,189 601,045 123,163 20.49% District Activities, Emp Recognition 43,013 35,844 1,712 26,630 (9,214) 1,877 16,846 9,783 58.07% Maintenance 432,971 360,809 68,357 377,561 16,752 69,571 352,976 24,585 6.96% Non-Capital Equipment 136,294 113,578 25,188 107,886 (5,692) 7,559 97,782 10,105 10.33% Office Expense 40,343 33,619 3,423 31,670 (1,949) 3,263 30,807 863 2.80% Professional Services 475,804 349,503 18,837 307,237 (42,267) 51,212 513,135 (205,899) -40.13% Training 67,188 55,990 7,350 30,588 (25,401) 2,663 26,669 3,919 14.70% Travel & Conferences 125,279 98,899 8,367 65,992 (32,907) 5,661 51,305 14,687 28.63% Uncollectible Accounts 2,790 2,325 (879) 3,244 919 (569) 2,728 516 18.92% Utilities 169,911 141,593 25,796 152,244 10,651 16,245 142,069 10,175 7.16% Vehicle Equipment 316,262 249,602 20,456 220,893 (28,708) 11,954 190,234 30,659 16.12% Supplies & Services Sub-Total 4,087,123 3,292,704 328,426 3,289,153 (3,551) 299,741 3,102,648 186,505 6.01% Total Operating Expenses 28,533,272 22,723,588 1,911,187 21,309,424 (1,414,164) 1,900,975 22,215,079 (905,655) -4.08% Expenses (Non-Operating): Interest on Long Term Debt 1,325,785 1,281,780 111,601 1,127,413 (154,368) 115,401 1,141,351 (13,938) -1.22% Other Expense 8,600 7,167 1,806 979,045 971,878 386 (53,121) 1,032,166 -1943.05% Total Non-Operating Expenses:1,334,385 1,288,947 113,407 2,106,458 817,511 115,787 1,088,230 1,018,228 93.57% Total Expenses 29,867,657 24,012,534 2,024,594 23,415,881 (596,653) 2,016,762 23,303,309 112,572 0.48% Net Position Before Capital Contributions 6,262,550 5,866,794 651,148 4,229,571 (1,637,223) 538,114 5,358,642 (1,129,071) -21.07% Special Item - - - - - (2,205,847) 2,205,847 -100.00% Capital Contributions (Non-Cash Transaction -- - 34,500 34,500 - 1,847,505 (1,813,005) -98.13% GASB 34 Compliant) Net Position Before Depreciation 6,262,550 5,866,794 651,148 4,264,071 (1,602,723) 538,114 5,000,300 (736,229) -14.72% Depreciation & Amortization 6,329,146 5,255,788 493,202 4,970,445 (285,344) 515,652 5,072,819 (102,374) -2.02% Total Net Position (66,596)$ 611,005$ 157,946$ (706,374)$ (1,317,379)$ 22,462$ (72,519)$ (633,855)$ 874.05% Capital - Direct Labor (279,000) (232,500) (11,790) (223,931) 8,569 (14,392) (189,954) (33,977) 17.89% Yorba Linda Water District Water Fund For Period Ending April 30, 2019 (With April 30, 2018 for comparison purposes) 3 $25,639,453 $26,606,963 $25,999,256 $28,661,951 $27,645,452 -3.55% $21,134,732 $19,388,965 $21,223,457 $23,303,309 $23,415,881 0.48% $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Apr. 2015 Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Water Revenues & Expenses -April (excludes Depreciation, Special Items, and Contributed Capital ) Total Revenue Total Expenses 4 Annual YTD April YTD YTD Actual Prior Year Prior Year YTD Actual YTD - CUR Budget Budget Actual Actual (Under)Over Apr Actual Actual (thru vs vs FY19 FY19 FY19 FY19 YTD Budget FY18 Apr 2018)PY Actual $PY Actual % Revenue (Operating): Sewer Charge Revenue 2,229,246$ 1,857,705$ 182,211$ 1,837,440$ (20,264)$ 168,151$ 1,707,509$ 129,932$ 7.61% Locke Ranch Assessments 273,250 270,990 105,909 296,129 25,138 77,001 260,072 36,056 0.00% Other Operating Revenue 66,730 55,608 2,383 52,735 (2,874) (3,211) 62,721 (9,987) -15.92% Total Operating Revenue:2,569,226 2,184,303 290,503 2,186,304 2,001 241,941 2,030,302 156,001 7.68% Revenue (Non-Operating): Interest 48,000 40,000 28,156 104,353 64,353 15,740 54,884 49,469 90.13% Other Non-Operating Revenue 34,500 28,750 29,858 1,108 1,206 (19,715) 49,573 -251.45% Total Non-Operating Revenue:82,500 68,750 28,156 134,210 65,460 16,946 35,169 99,041 281.62% Total Revenue 2,651,726 2,253,053 318,659 2,320,514 67,461 258,887 2,065,471 255,043 12.35% Expenses (Operating): Salary Related Expenses 1,131,721 840,204 78,723 740,025 (100,180) 57,918 827,334 (87,309) -10.55% Supplies & Services: Communications 11,977 9,980 986 6,894 (3,086) 394 6,483 411 6.33% Contractual Services 29,766 24,805 2,598 19,605 (5,200) 2,304 24,342 (4,738) -19.46% Data Processing 17,322 14,435 528 14,694 259 1,279 11,334 3,359 29.64% Dues & Memberships 6,153 5,128 21 5,541 413 23 5,938 (397) -6.69% Fees & Permits 15,907 13,256 716 9,266 (3,990) 1,061 9,316 (50) -0.54% Board Election 5,250 4,375 3,970 (405) - - 3,970 Insurance 21,223 17,686 1,460 16,842 (844) 1,599 15,521 1,320 8.51% Materials 28,622 23,852 9,769 43,432 19,581 566 33,151 10,282 31.02% District Activities, Emp Recognition 3,238 2,698 129 1,936 (762) 141 1,258 678 53.91% Maintenance 171,630 108,025 3,950 79,504 (28,521) 2,432 110,572 (31,067) -28.10% Non-Capital Equipment 36,157 30,131 4,785 23,047 (7,083) 462 18,626 4,422 23.74% Office Expense 2,957 2,464 258 2,176 (288) 246 2,281 (104) -4.56% Professional Services 33,996 28,330 8,661 42,343 14,013 5,538 28,699 13,645 47.54% Training 13,052 10,876 989 17,500 6,624 187 4,991 12,509 250.61% Travel & Conferences 14,061 11,717 204 5,607 (6,110) 426 3,840 1,767 46.02% Uncollectible Accounts 210 175 (210) 193 18 (56) 270 (77) -28.48% Utilities 13,489 11,241 1,942 11,823 583 1,284 11,159 665 5.96% Vehicle Equipment 59,138 49,281 3,441 34,007 (15,274) 3,367 61,560 (27,552) -44.76% Supplies & Services Sub-Total 484,145 368,454 40,227 338,383 (30,072) 21,253 349,341 (10,958) -3.14% Total Operating Expenses 1,615,866 1,208,659 118,950 1,078,408 (130,251) 79,171 1,176,675 (98,267) -8.35% Expenses (Non-Operating): Other Expense 5,600 4,667 9,374 4,708 - (2,116) 11,490 -543.11% Total Non-Operating Expenses:5,600 4,667 - 9,374 4,708 - (2,116) 11,490 -543.11% Total Expenses 1,621,466 1,213,325 118,950 1,087,782 (125,543) 79,171 1,174,559 (86,777) -7.39% Net Position Before Capital Contributions 1,030,259 1,039,728 199,709 1,232,732 193,004 179,716 890,913 341,820 38.37% Capital Contributions (Non-Cash - - 4,056 4,056 1,599,813 (1,595,757) -99.75% Transaction GASB 34 Compliant) Net Position Before Depreciation 1,030,259 1,039,728 199,709 1,236,788 197,060 179,716 2,490,725 (1,253,937) -50.34% Depreciation & Amortization 1,396,996 1,164,163 114,852 1,146,008 (18,155) 114,958 1,138,148 7,860 0.69% Total Net Position (366,736)$ (124,435)$ 84,857$ 90,780$ 215,215$ 64,758$ 1,352,577$ (1,261,797)$ -93.29% Capital - Direct Labor (21,000) (17,500) (8,031) (64,356)(46,856) (2,197) (18,002)(46,354)257.50% Yorba Linda Water District Sewer Fund For Period Ending April 30, 2019 (With April 30, 2018 for comparison purposes) 5 $1,593,144 $1,687,971 $1,954,986 $2,065,471 $2,320,514 12.35% $996,984 $1,065,586 $1,137,801 $1,174,559 $1,087,782 -7.39% $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Apr. 2015 Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Sewer Revenues & Expenses -April (excludes Depreciation, Special Items, and Contributed Capital) Total Revenue Total Expenses 6 $3,606,449 $4,168,740 $8,449,800 $8,457,043 $8,332,247 8,366,758$1,665,286 $1,629,977 $1,403,746 $1,468,848 $1,563,689 1,398,775 $3,739,021 $3,530,640 $2,129,282 $2,603,462 $3,236,358 2,806,078 $13,934,703 $14,387,512 $10,075,333 $10,705,485 $12,647,329 $11,270,013 $22,945,459 $23,716,869 $22,058,161 $23,234,838 $25,779,623 -7.52%decrease compared to FY18 $23,841,625 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 FY14 FY15 FY16 FY17 FY18 FY19 Water Revenue Comparison by Fiscal Year Water Revenue (Service Charge) Water Revenue (Commercial & Fire Det.) Water Revenue (Landscape/Irrigation) Water Revenue (Residential)Total 7 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL 63,789 58,343 53,077 41,197 49,277 29,976 29,725 42,840 44,271 40,920 48,163 27,314 38,942 39,778 27,776 51,279 38,906 36,243 143,525 147,368 137,653 62,133 100,928 59,372 17,947 88,221 49,880 15,732 92,152 14,160 36,200 70,377 10,653 100,176 64,775 62,542 CONSUMPTION BY UNITS CCF Residential Commercial Landscape 8 0.000.501.001.502.002.500.0010.0020.0030.0040.0050.0060.0070.001‐Apr2‐Apr3‐Apr4‐Apr5‐Apr6‐Apr7‐Apr8‐Apr9‐Apr10‐Apr11‐Apr12‐Apr13‐Apr14‐Apr15‐Apr16‐Apr17‐Apr18‐Apr19‐Apr20‐Apr21‐Apr22‐Apr23‐Apr24‐Apr25‐Apr26‐Apr27‐Apr28‐Apr29‐Apr30‐AprinchesVolume, AFRainfall and EToGroundwaterOC‐36Import WaterConsumptionEToRainfall9 012243648607284961081200.0010.0020.0030.0040.0050.0060.0070.001‐Apr2‐Apr3‐Apr4‐Apr5‐Apr6‐Apr7‐Apr8‐Apr9‐Apr10‐Apr11‐Apr12‐Apr13‐Apr14‐Apr15‐Apr16‐Apr17‐Apr18‐Apr19‐Apr20‐Apr21‐Apr22‐Apr23‐Apr24‐Apr25‐Apr26‐Apr27‐Apr28‐Apr29‐Apr30‐AprTemperature, degrees FahrenheitVolume, AFTemperatureGroundwaterOC‐36Import WaterConsumptionTemperature10 981,755 1,069,354 494,671 494,190 886,166 1,080,372 1,143,948 1,518,953 939,601 1,019,271 788,116 1,200,582 981,384 1,019,234 657,883 460,667 590,007 945,974 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 Nov Dec Jan Feb Mar April Variable Costs Analysis FY17 Var Costs FY18 Var Costs FY19 Var Costs 11 ITEM NO. 9.5 AGENDA REPORT Meeting Date: May 28, 2019 To:Board of Directors From:Marc Marcantonio, General Manager Presented By:Delia Lugo, Finance Manager Dept:Finance Prepared By:Saira Hernandez, Accountant Subject:Cash and Investment Report for Period Ending April 30, 2019 SUMMARY: Government Code Section 530607, et. seq., requires the person delegated to invest funds to make monthly report of investments to the legislative body. DISCUSSION: The Cash & Investment Portfolio Report presents the market value and percent yield for all District investments by institution. The Cash & Investment Summary Report includes budget and actual interest and average term portfolio information as well as market value broken out by reserve categories. The Fair Value Measurement Report categorizes investments with the fair value hierarchy established by generally accepted accounting principles. The Unrestricted Reserves and Days in Cash Graph presents Water Unrestricted Reserve Balances and Days in Cash at a particular point in time for the last four years. The average portfolio yield for the month ending April 30, 2019 is 2.29%. The District's Total Cash and Investment balance at April 30, 2019 resulted in an increase of approximately $1,466,699 when compared to the ending balance of the previous month. A large balance change includes an increase in Water Operating Funds of $1,453,699 due to a large property tax payments received $692,913, a transfer from Water Capital Project Reserve in the amount of $353,699 to cover Pay-Go for the month, and an increase in water usage through the reporting month compared to that of the previous month causing an increase in sales. STRATEGIC PLAN: G2 1D - Retain cash on hand of 365+ days at fiscal year end. ATTACHMENTS: Name:Description:Type: Cash_Invest_Reports_Apr_19.pdf Backup Material Backup Material Market %Date of Percent Value Par of Total Institution Maturity Yield Checking Account: 461,242$ 461,242$ Wells Fargo Bank 461,242$ 461,242$ 1.29%Total 0.00% Money Market Accounts: 251$ 251$ US Bank (Revenue Bonds)2.04% 3,290,046 3,273,199 US Bank (Money Market)2.18% 255,526 255,526 Public Agency Retirement Svcs. (PARS) 3,545,824$ 3,528,976$ 9.90%Total 2.18% Certificates of Deposits: 199,832$ 200,000$ World's Foremost Bk Sydney 05/28/19 1.30% 247,918 248,000 Capital One Bk USA Natl Assn 05/13/19 1.20% 244,311 249,000 Comenity Cap Bk Salt Lake City 06/30/21 1.68% 244,273 248,000 EnerBank USA Salt Lake City 08/26/20 1.32% 246,993 248,000 EverBank Jacksonville Fla CTF 08/30/19 1.15% 177,404 180,000 HSBC BK USA, NA MC Clean CTF 08/31/21 1.27% 242,837 248,000 Wells Fargo Bank NA Sioux Falls D 08/31/21 1.63% 244,214 247,000 PrivateBank & Tr Chicago Ill CTF 03/30/22 2.23% 247,932 249,000 JP Morgan Chase Bk NA Columbus 03/31/22 2.46% 2,095,714$ 2,117,000$ 5.85%Total 1.60% Pooled Investment Accounts: 11,282,666$ 11,282,666$ Local Agency Investment Fund 2.45% 1,362,260 1,361,065 CalTRUST Short Term 2.74% 17,084,098 17,170,284 CalTRUST Medium Term 2.33% 29,729,024$ 29,814,015$ 82.97%2.39% 35,831,804$ 35,921,233$ 100%Total Investments 2.29% Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. 4/30/19 Yorba Linda Water District Cash & Investment Portfolio Report April 30, 2019 ________________________________ Saira Hernandez, Accountant 1 Below is a chart summarizing the yields as well as terms and maturities for the month of April 2019: Average # of Month Portfolio Days to of 2019 Yield Maturity April 2.29%52 Below are charts comparing operating fund interest for current and prior fiscal years. Actual Interest 4/30/2018 4/30/2019 Monthly - April 66,200$ 118,687$ Year-to-Date 395,369$ 649,213$ Budget 2017/2018 2018/2019 Interest Budget, April YTD 258,333$ 298,333$ Interest Budget, Annual 310,000$ 358,000$ Interest earned on investments is recorded in the fund that owns the investment. The distribution of investments in the portfolio both in dollars and as a percentage of the total portfolio by funds is as follows: The table below displays the District's Cash and Investment balance of $35.8 million which is allocated between the established reserve funds, Wells Fargo Checking Account, and the restricted funds held at U.S. Bank for the construction of the Fairmont Booster Pump Station. The number of Days in Cash are 379 for the Un-Restricted Water Reserve balance and 1,118 for the Un-Restricted Sewer Reserve balances, as of April 30, 2019. FY19 Reserve Cash and Requirements Investments March 2019 % Alloc April 2019 % Alloc "Target Available for Fund Description Balance 3/31/2019 Balance 4/30/2019 Levels"CY Obligations Water Operating Reserve 13,206,060$ 37.61%14,709,995$ 41.89%7,593,220$ 7,116,775$ Water Emergency Reserve 7,066,038 20.12%7,083,221 20.17%5,813,701 1,269,520 Water Capital Project Reserve 4,235,567 12.06%3,897,652 11.10%6,327,500 (2,429,848) Rate Stabilization Reserve 4,059,565 11.56%4,067,991 11.58%1,600,999 2,466,992 Un-Restricted Water Reserve Balance 28,567,231 29,758,858 21,335,420 8,423,438 Conservation Reserve 103,546 0.29%104,236 0.30%- 104,236 Employee Liability Reserve 298,124 0.85%300,111 0.85%273,000 27,111 Restricted Reserve Balance 401,669 404,347 273,000 131,347 Sewer Operating Reserve 1,860,999 5.30%1,972,854 5.62%403,967 1,568,887 Sewer Emergency Reserve 2,607,911 7.43%2,620,497 7.46%1,899,951 720,546 Sewer Capital Project Reserve 356,516 1.02%358,228 1.02%2,000,000 (1,641,772) Un-Restricted Sewer Reserve Balance 4,825,427 4,951,579 4,303,918 647,661 Total Reserve Balances 33,794,327$ 96.24%35,114,784$ 100.00%25,912,338$ 9,202,446$ Water Operating 197,510 257,548 Sewer Operating 120,484 203,695 317,994 461,242 Rev. Bond 2012A & 2017A-Principal & Interest 95 251 Public Agency Retirement Svc. -PARS (Restricted)252,689 255,526 Total Cash and Investments 34,365,105$ 35,831,804$ Cash & Investment Summary Report Cash & Investment Summary Comparison Between Current and Previous Month Wells Fargo Bank Checking US Bank Held (Restricted) 2 Investment Balances (as of 4-30-2019) Checking Account: /1.29% Money Market Accounts: I 9.90% Certificates of Deposit: 5.85% Pooled Investment Accounts: 82.97% Checking Account: $ 461,242 1.29% Money Market Accounts: $ 3,545,824 9.90% Certificates of Deposit. $ 2,095,714 5.85% Pooled Investment Accounts: $ 29,729,024 82.97% Total $ 35,8319804 100.00% 3 Yorba Linda Water District Fair Value Measurement Report April 30, 2019 Quoted Observable Unobservable Prices Inputs Inputs Investments Level 1 Level 2 Level 3 Total CalTRUST Investment Pool -$ 18,446,358$ -$ 18,446,358$ Local Agency Investment Fund - 11,282,666 - 11,282,666 U.S. Government Sponsored Agency Securities - - - - Negotiable Certificates of Deposit - 2,095,714 - 2,095,714 Total Investments -$ 31,824,738$ -$ 31,824,738$ 4 PARS (Public Agency Retirement Services) Funding Reconciliation Transaction Contributions PARS Expenses Investment Available Description Date & Gains & Losses Return (%)Balance Beginning Balance 7/1/2018 247,389.78$ 247,389.78$ Investment Return 7/31/2018 3,520.41$ 250,910.19$ Investment Expenses 7/31/2018 (51.54)$ 250,858.65$ Investment Return 8/31/2018 3,307.14$ 254,165.79$ Investment Expenses 8/31/2018 (52.26)$ 254,113.53$ Investment Return 9/30/2018 (332.13)$ 253,781.40$ Investment Expenses 9/30/2018 (52.94)$ 253,728.46$ Investment Return 10/31/2018 (10,505.63)$ 243,222.83$ Investment Expenses 10/31/2018 (52.86)$ 243,169.97$ Investment Return 11/30/2018 2,837.57$ 246,007.54$ Investment Expenses 11/30/2018 (50.66)$ 245,956.88$ Investment Return 12/31/2018 (9,674.65)$ 236,282.23$ Investment Expenses 12/31/2018 (51.24)$ 236,230.99$ Investment Return 1/31/2019 12,505.79$ 248,736.78$ Investment Expenses 1/31/2019 (49.21)$ 248,687.57$ Investment Return 2/28/2019 4,053.65$ 252,741.22$ Investment Expenses 2/28/2019 (51.81)$ 252,689.41$ Investment Return 3/31/2019 2,889.57$ 255,578.98$ Investment Expenses 3/31/2019 (52.64)$ 255,526.34$ subtotal =255,526.34$ Initial Deposit 12/28/2017 247,599.00$ Gain(Loss) from initial Deposit 7,927.34$ 5 $32,207,875 $26,675,034 $28,620,852 $29,758,858 439 377 391 379 60 110 160 210 260 310 360 410 460 $20,000 $5,020,000 $10,020,000 $15,020,000 $20,020,000 $25,020,000 $30,020,000 $35,020,000 Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Unrestricted Reserves & Days in Cash (Water) Unrestricted Reserves (Water)Days in Cash (Water) 6 ITEM NO. 10.1 AGENDA REPORT Meeting Date: May 28, 2019 Subject:Directors' Reports · Intergovernmental Meetings, Conferences, and Events SUMMARY: The Directors will report on their attendance at the following events: 1. MWDOC Board - May 15, 2019 (Miller/Nederhood) 2. OCWA Luncheon - May 15, 2019 (Jones/Miller) 3. YLWD Open House - May 18, 2019 4. WACO Planning Committee - May 21, 2019 (Jones) 5. SAWPA Commission - May 21, 2019 (Jones - As Needed) 6. YL City Council - May 21, 2019 (Miller) 7. OCWD Board - May 22, 2019 (Jones) 8. OCSD Board - May 22, 2019 (Hawkins) ITEM NO. 12.1 AGENDA REPORT Meeting Date: May 28, 2019 Subject:Meetings from May 29 - July 31, 2019 ATTACHMENTS: Name:Description:Type: BOD_-_Activities_Calendar.pdf Backup Material Backup Material Board of Directors Activity Calendar Event Date Time Attendance By May Special Districts Summit Thu, May 30 8:30 AM Jones OC Water Summit Fri, May 31 7:30 AM Hawkins/Jones/Miller/Nederhood June ISDOC Executive Committee Tue, Jun 4 7:30 AM Nederhood SAWPA Commission Tue, Jun 4 9:30 AM Jones (As Needed) YL City Council Tue, Jun 4 6:30 PM Jones MWDOC Board Wed, Jun 5 8:30 AM Miller/Nederhood OCWD Board Wed, Jun 5 5:30 PM Jones WACO Fri, Jun 7 7:30 AM AWWA Annual Conference Mon, Jun 10 8:00 AM Jones AWWA Annual Conference Tue, Jun 11 8:00 AM Jones Board of Directors Regular Meeting Tue, Jun 11 6:30 PM To Be Rescheduled AWWA Annual Conference Wed, Jun 12 8:00 AM Jones OC LAFCO Wed, Jun 12 8:15 AM Nederhood (As Needed) YL Planning Commission Wed, Jun 12 6:30 PM Hawkins (As Needed) FBPS Dedication Ceremony Sat, Jun 15 10:00 AM Joint Committee Meeting with City of Yorba Linda Mon, Jun 17 4:00 PM Jones/Hawkins WACO Planning Committee Tue, Jun 18 7:30 AM Jones/Nederhood SAWPA Commission Tue, Jun 18 9:30 AM Jones (As Needed) YL City Council Tue, Jun 18 6:30 PM Hawkins MWDOC Board Wed, Jun 19 8:30 AM Miller/Nederhood OCWA Luncheon Wed, Jun 19 11:30 AM OCWD Board Wed, Jun 19 5:30 PM Jones Board of Directors Regular Meeting Tue, Jun 25 6:30 PM OCSD Board Wed, Jun 26 6:00 PM Hawkins YL Planning Commission Wed, Jun 26 6:30 PM Hawkins (As Needed) ISDOC Thu, Jun 27 11:30 AM July ISDOC Executive Committee Tue, Jul 2 7:30 AM Nederhood SAWPA Commission Tue, Jul 2 9:30 AM Jones (As Needed) YL City Council Tue, Jul 2 6:30 PM Hall MWDOC Board Wed, Jul 3 8:30 AM Miller/Nederhood OCWD Board Wed, Jul 3 5:30 PM Jones District Offices Closed Thu, Jul 4 7:00 AM Board of Directors Regular Meeting Tue, Jul 9 6:30 PM OC LAFCO Wed, Jul 10 8:15 AM Nederhood (As Needed) YL Planning Commission Wed, Jul 10 6:30 PM Hawkins (As Needed) WACO Fri, Jul 12 7:30 AM WACO Planning Committee Tue, Jul 16 7:30 AM Jones/Nederhood SAWPA Commission Tue, Jul 16 9:30 AM Jones (As Needed) YL City Council Tue, Jul 16 6:30 PM Miller MWDOC Board Wed, Jul 17 8:30 AM Miller/Nederhood OCWA Luncheon Wed, Jul 17 11:30 AM OCWD Board Wed, Jul 17 5:30 PM Jones Board of Directors Regular Meeting Tue, Jul 23 6:30 PM MWDOC/OCWD Joint Planning Committee Wed, Jul 24 8:30 AM OCSD Board Wed, Jul 24 6:00 PM Hawkins YL Planning Commission Wed, Jul 24 6:30 PM Hawkins (As Needed) Interagency Committee Meeting with MWDOC and OCWD Thu, Jul 25 4:00 PM Jones/Hawkins As of May 21, 2019 BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING BOARD OF DIRECTORS ITEM NO. 5.1. SAUNDRA F.JACOBS BETTY H.OLSON,PH.D CHARLEY WILSON CHARLES GIBSON JUSTIN McCUSKER DANIEL R.FERONS GENERAL MANAGER Santa Maagarzita Watea District May 28, 2019 Dear President Jones: I am delighted to announce my candidacy for Special District Representative to the Orange County Local Agency Formation Commission("LAFCO"). I would be honored to receive your district's support to elect me as your next LAFCO Commissioner. In the next few years, LAFCO will be called on to address a host of issues on the governance in our county particularly as it relates to special districts. From the planned schedule of Municipal Service Reviews to the ultimate governance of the remaining unincorporated areas of the county— many of which are in south Orange County where I currently serve on the Board of the Santa Margarita Water District; there is much work to be done. My passion for public service and the work of special districts comes from my 23 years on the Santa Margarita Water District Board. As your President of the Executive Committee for the Independent Special Districts of Orange County I have a keen interest and awareness of the needs and requirements for the success of all special districts—from library, cemetery and vector control districts,to water, sewer, and other community services,both non-enterprise and enterprise. I hope that I have adequately demonstrated my willingness to provide leadership in organization, advo- cacy,and communications to benefit and nurture special districts of every stripe and that I am fully prepared to step in the role of LAFCO Commissioner. I have enclosed some background information on my experience in public service and business as well as my platform as a candidate for LAFCO Special District Representative. I would be de- lighted to discuss my candidacy with you and your board colleagues further and answer any ques- tions you may have. I hope you will contact me at 949/702-1145 or at saundraiaa,smwd.com. It would be my honor to serve you and our organizations and I humbly ask for your vote and support. Sincere Saundra F. Jacobs, President Santa Margarita Water District Santa Margarita Water District-26111 Antonio Parkway,Rancho Santa Margarita,CA 92688 www.SMWD.com - (949)459-6420 MATERIALS SUBMITTED BY: Saundra Jacobs MEETING DATE: May 28, 2019 ITEM NO. 5.1. BOARD OF DIRECTORS SAUNDRA F.JACOBS BETTY H.OLSON,PH.D Santa MC11200121-ta CHARLES T.GIBSON CHARLEY WILSON Tatem Dista ict JUSTIN McCUSKER DANIEL R.FERONS GENERAL MANAGER Saundra F. Jacobs Candidate for Special District Representative, , LAFCO Special District Oraanizations • President, Santa Margarita Water District, (Current; Elected Board Member since 1996) • President, Executive Committee, Independent Special Districts of Orange County, (Current; Board Member since 1999) • South Orange County Watershed Management Area Executive Committee, (Current Member, Former Chair) • California Special Districts Association, Member • Association of California Water Agencies (ACWA), Region 10 Member, Communications Committee • ACWA Joint Powers Authority, Executive Committee Member • Former President, Board of Directors, Lake Mission Viejo Association Professional Orqanizations • Registered Environmental Assessor • American Planning Association, Member • Association of Environmental Professionals, Member • California Wireless Association, Member Platform I believe LAFCO is a facilitating organization. Its job is to support and enable cooperative and voluntary applications and conduct the reviews and inquiries required by statute without bias or favor. I believe in local control; that local communities know what is best for their ratepayers, their residents and their businesses. I do not support involuntary consolidations or dissolutions of special districts or other units of government except in extreme cases of insolvency or other dire circumstances. Santa Margarita Water District• 26111 Antonio Parkway,Rancho Santa Margarita,CA 92688 MATERIALS SUBMITTED BY: SauMu'p (949)459-6420 MEETING DATE: May 28, 2019 ITEM NO. 5.1. • LISA A. BARTLETT CHAIRWOMAN ORANGE COUNTY BOARD OF SUPERVISORS SUPERVISOR, FIFTH DISTRICT ORANGE COUNTY HALL OF ADMINISTRATION • 333 W.SANTA ANA BLVD, 10 CIVIC CENTER,SANTA ANA,CALIFORNIA 92701 PHONE(714)834-3550 FAX(714)834-2670 http://bos.ocgov.com/fifth/ May 17, 2019 The Honorable Bill Green President, Independent Special Districts of Orange County 31592 West Street Laguna Beach, CA 92651 Re: Support for Saundra Jacobs as the Special District Representative Dear President Green, As the Fifth District County Supervisor, I would like to express my support for Santa Margarita Water District President Saundra Jacobs as the Special District Representative to the Orange County Local Agency Formation Commission(Commission). I fully respect the right of the Independent Special Districts of Orange County to select your representative. Accordingly, I would like to provide you with additional information about the needs of the Commission and facts on why Saundra would be an excellent representative. As you may know, the Commission is central to the most contentious public policy issues in Orange County due to its authority under the Cortese-Knox-Hertzberg Act.Therefore, it is critically important to appoint a representative who has the requisite professional experience and temperament. Moreover, there are foreseeable governance challenges for South Orange County and it is especially necessary to maintain a representative who knows the region. Saundra is one of the few individuals qualified to meet these requirements. The Commission would benefit greatly from a representative who has proven experience as being measured and fair. I have the pleasure of serving with Saundra on the South Orange County Watershed Management Area Executive Committee(SOCWMA)and found her to be thoughtful,open-minded, and well-reasoned as a policymaker. SOCWMA is responsible for facilitating cooperation around water resource projects, water quality issues, and securing competitive grants for South Orange County. Whereas other regions struggle to balance competing interests, SOCWMA has been a gold standard for successful collaboration and Saundra's leadership as chair had been exemplary. It is without question that Saundra would perform just as admirably as your Special District Representative. Lastly, the open Commission seat was recently vacated by a South Orange County representative. The history of the Commission has shown that it is imperative to have a proportional share of representatives who have a first-hand understanding of the South Orange MATERIALS SUBMITTED BY: Saundra Jacobs MEETING DATE: May 28, 2019 YLWD 5 YEAR CIP - WATER AND SEWER DRAFT 05/07/19 Comment FY20 FY21 FY22 FY23 FY24 Capital and Rehabilitation and Replacement (R&R) Projects PH&S Mickel and Camino Verde Waterline Replacement Fire flow deficient and failing pipes 600,000$ PH&S Lakeview Booster Pump Station Piping (Water Quality)Problems maintaining chlorine residual 200,000$ PH&S Timber Ridge Pump 4 Replacement Failed pump and natural gas engine. Parts no longer available. Feeds fire interface area.300,000$ PH&S Hidden Hills BPS Upgrades Not included in Cielo Vista Project. Required for fire protection for 1000 zone and above 300,000$ PH&S Ridgeway Waterline Replacement Extensive leak history on old pipes and remove meter clusters in backyard 700,000$ PH&S Avolinda and Imperial Waterline Replacement Broken valves and leak history. Abandon Imperial and realign in other streets.1,300,000$ Reg Site and Security Upgrades at District Facilities (Bioterrorism Act of 2002)Cyber Security, Natural Disasters, Terrorism Protection 500,000$ 500,000$ 500,000$ 500,000$ R&R Well 22 Equipping Replaces aging wells 900,000$ R&R Field Headquarters Rehabilitation (HVAC, Roof, Paving)Leaking roof, HVAC is beyond useful life, deteriorating pavement/concrete 500,000$ R&R Well Equipment Rehabilitation Extend useful life of well 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ R&R Reservoir Operational Repair and Replacement Included in AMP. Extend useful life.100,000$ 100,000$ 100,000$ 100,000$ R&R Box Canyon Pump 2 Replacement Operational inefficiency 70,000$ R&R Apple Creek and Del Rey PRS Replacement Included in AMP. Reaching the end of useful life.450,000$ R&R Dominguez Hills and Paseo Del Prado PRS Replacement Included in AMP. Reaching the end of useful life.600,000$ R&R Waterline Replacement Included in AMP. Replace pipes based on consequence and likelihood of failure.2,000,000$ 2,000,000$ 2,000,000$ R&R Richfield Chemical System Replacement Included in AMP. Reaching the end of useful life.800,000$ R&R Well 20 Chemical System Replacement Included in AMP. Reaching the end of useful life and undersized.400,000$ EP Reservoir Fire Hardening (4 sites)Fire Protection 500,000$ Water Capitalized Labor 225,000$ 312,000$ 380,000$ 355,000$ 405,000$ R&R Sewer System Rehabilitation and Replacement Based on CCTV inspection and also included in AMP 350,000$ 350,000$ 350,000$ 350,000$ 350,000$ SU Community Facilities District/Assessment District Projects 350,000$ 400,000$ 500,000$ 500,000$ 500,000$ Sewer Capitalized Labor 70,000$ 75,000$ 85,000$ 85,000$ 85,000$ Capital and R&R Projects Subtotal = 3,245,000$ 4,257,000$ 5,115,000$ 4,840,000$ 5,390,000$ Project Total Water Only =2,475,000$ 3,432,000$ 4,180,000$ 3,905,000$ 4,455,000$ Project Total Sewer Only =770,000$ 825,000$ 935,000$ 935,000$ 935,000$ Vehicle and Capital Equipment Replacement PH&S SCADA Radio Communications System Enhancement 175,000$ R&R IT Capital Outlay 187,425$ 196,796$ 262,235$ 272,235$ 300,000$ R&R/EP Operations Water Capital Outlay 367,000$ 481,000$ 222,000$ 285,000$ 300,000$ R&R Vehicle Replacement - Sewer 475,000$ R&R Operations Sewer Capital Outlay 314,045$ Vehicle & Capital Equipment Subtotal = 1,043,470$ 677,796$ 959,235$ 557,235$ 600,000$ CIP Total =4,288,470$ 4,934,796$ 6,074,235$ 5,397,235$ 5,990,000$ CIP Total Water Only =3,204,425$ 4,109,796$ 4,664,235$ 4,462,235$ 5,055,000$ CIP Total Sewer Only =1,084,045$ 825,000$ 1,410,000$ 935,000$ 935,000$ 5 Year CIP Total =26,684,736$ Note: All costs are 2019 dollars and do not include escalation. PH&S = Public Health and Safety Reg R&R EP SU = Regulatory = Repair and Replace = Emergency Preparedness = System Upgrade ITEM NO. 9.1. MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: May 28, 2019 YLWD 5 YEAR CIP POTENTIAL DEBT-FUNDED WATER AND SEWER PROJECTS DRAFT 05/28/19 Comments FY20 FY21 FY22 FY23 FY24 CIP SUBTOTAL Capital and Rehabilitation and Replacement (R&R) Projects PH&S Mickel and Camino Verde Waterline Replacement Fire flow deficient and failing pipes 600,000$ -$ -$ -$ -$ 600,000$ PH&S Lakeview Booster Pump Station Piping (Water Quality)Problems maintaining chlorine residual 200,000$ -$ -$ -$ -$ 200,000$ PH&S Timber Ridge Pump Station Replacement Pump/natural gas engine require replacement and building needs to be fire hardended. Feeds fire interface area. 5/7/2019 Draft CIP Plan was to replace pump/engine ($300K in FY20) until entire pump station could be replaced. Project would include pump station replacement. -$ 400,000$ 1,200,000$ -$ -$ 1,600,000$ PH&S Hidden Hills BPS Upgrades Install back-up natural gas generator -$ 300,000$ -$ -$ -$ 300,000$ PH&S Ridgeway Waterline Replacement Extensive leak history on old pipes and remove meter clusters in backyard -$ 700,000$ -$ -$ -$ 700,000$ PH&S Avolinda and Imperial Waterline Replacement Broken valves and leak history. Abandon Imperial and realign in other streets.-$ 1,300,000$ -$ -$ 1,300,000$ REG Site and Security Upgrades at District Facilities (Bioterrorism Act of 2002)Cyber Security, Natural Disasters, Terrorism Protection -$ 500,000$ 500,000$ 500,000$ 500,000$ 2,000,000$ R&R Well 22 Equipping Replaces aging wells (5/7/19 Draft CIP Plan in FY24)-$ -$ 900,000$ -$ 900,000$ R&R Field Headquarters Rehabilitation (HVAC, Roof, Paving)Leaking roof, HVAC is beyond useful life, deteriorating pavement/concrete 500,000$ -$ -$ -$ -$ 500,000$ R&R Well Equipment Rehabilitation Extend useful life of well 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 750,000$ R&R Reservoir Operational Repair and Replacement Included in AMP. Extend useful life.-$ 100,000$ 100,000$ 100,000$ 100,000$ 400,000$ R&R Box Canyon Pump 2 Replacement Operational inefficiency -$ 70,000$ -$ -$ -$ 70,000$ R&R Apple Creek and Del Rey PRS Replacement Included in AMP. Del Rey impedes ability to move import water and both assets are at end of useful life.-$ -$ 450,000$ -$ -$ 450,000$ R&R Dominguez Hills and Paseo Del Prado PRS Replacement Included in AMP. Reaching the end of useful life.-$ -$ 600,000$ -$ -$ 600,000$ R&R Waterline Replacement Included in AMP. Replace pipes based on consequence and likelihood of failure.-$ -$ 2,000,000$ 2,000,000$ 2,000,000$ 6,000,000$ R&R Richfield Chemical System Replacement Included in AMP. Reaching the end of useful life.-$ -$ -$ 800,000$ -$ 800,000$ R&R Well 20 Chemical System Replacement Included in AMP. Reaching the end of useful life and undersized.-$ -$ -$ -$ 400,000$ 400,000$ R&R Well 23 Future groundwater well source -$ -$ R&R Lakeview Chemical System Replacement Included in AMP -$ R&R Pump Station Rehabilitation Included in AMP -$ R&R Pressure Regulating Station (PRS) Replacement Included in AMP -$ EP Reservoir Fire Hardening (4 sites)Fire Protection 500,000$ -$ -$ -$ -$ 500,000$ SU Water Supply Redundancy and Fire Flow Reliability (5 sites)Reliability -$ EP Advanced Metering Infrastructure (AMI)Install AMI meters, towers, and collectors 2,000,000$ 1,500,000$ 1,500,000$ -$ 5,000,000$ Water Capitalized Labor Excludes Capitalized Labor for Potential Debt-Funded Projects 195,000$ 32,000$ 25,000$ 25,000$ 315,000$ 592,000$ Water Capitalized Labor for Debt-Funded Projects Includes Capitalized Labor for Potential Debt-Funded Projects 520,000$ 625,000$ 570,000$ 1,715,000$ R&R Sewer System Rehabilitation and Replacement Based on CCTV inspection and also included in AMP 350,000$ 350,000$ 350,000$ 350,000$ 350,000$ 1,750,000$ SU Community Facilities District/Assessment District Projects 350,000$ 400,000$ 500,000$ 500,000$ 500,000$ 2,250,000$ Sewer Capitalized Labor 70,000$ 75,000$ 85,000$ 85,000$ 85,000$ 400,000$ All Capital and R&R Projects Subtotal = 2,915,000$ 6,897,000$ 8,085,000$ 7,480,000$ 4,400,000$ 29,777,000$ Water Projects (not Debt-Funded) Subtotal =2,145,000$ 352,000$ 275,000$ 275,000$ 3,465,000$ 6,512,000$ Sewer Projects (not Debt-Funded) Subtotal =770,000$ 825,000$ 935,000$ 935,000$ 935,000$ 4,400,000$ Potential Debt-Funded Water Projects Subtotal -$ 5,720,000$ 6,875,000$ 6,270,000$ 18,865,000$ Vehicle and Capital Equipment Replacement PH&S SCADA Radio Communications System Enhancement 175,000$ 175,000$ R&R IT Capital Outlay 187,425$ 196,796$ 262,235$ 272,235$ 300,000$ 1,218,691$ R&R/EP Operations Water Capital Outlay 367,000$ 481,000$ 222,000$ 285,000$ 300,000$ 1,655,000$ R&R Vehicle Replacement - Sewer 475,000$ 475,000$ R&R Operations Sewer Capital Outlay 314,045$ 314,045$ Vehicle & Capital Equipment Subtotal = 1,043,470$ 677,796$ 959,235$ 557,235$ 600,000$ 3,837,736$ CIP Total =3,958,470$ 7,574,796$ 9,044,235$ 8,037,235$ 5,000,000$ 33,614,736$ CIP Water Only Total =2,874,425$ 1,029,796$ 759,235$ 832,235$ 4,065,000$ 9,560,691$ CIP Potential Debt-Funded Water Only Total =-$ 5,720,000$ 6,875,000$ 6,270,000$ -$ 18,865,000$ CIP Sewer Only Total=1,084,045$ 825,000$ 1,410,000$ 935,000$ 935,000$ 5,189,045$ PH&S = Public Health and Safety REG = Regulatory R&R = Repair and Replace EP = Emergency Preparedness SU = System Upgrade Note: Budget amounts are 2019 dollars and do not include escalation. These are planning level budgets. Cost estimates for all projects will be updated following preparation of design documents, and/or receipt of construction bids. ITEM NO. 9.1. MATERIALS SUBMITTED BY: Rosanne Weston MEETING DATE: May 28, 2019 Cost Analysis Manual Invoice versus Electronic   Type of Cost US Mail Bill         (cost  per bill)  Electronic Bill (cost  per bill) 0.0230$                        0.0230$                    0.1048$                         ‐$                           0.0141$                         ‐$                             0.0140$                         ‐$                           0.0133$                         ‐$                             0.3819$                         ‐$                            InfoSend Print Image Archiving Cost  =0.0100$                       0.0100$                    Subtotal  = 0.5611$                       0.0330$                    17,175                     7,535                    Monthly Costs  = 9,636.07$                    248.66$                    Annual Costs  = 115,632.79$               2,983.86$                 Count of Customers  =    InfoSend eBill Processing & Storage Count  =   InfoSend Data Processing Count  =   InfoSend 8.5 X 11 Printed Invoice Form  =   InfoSend #10 Outgoing Envelope Count  =   InfoSend #9 Return Envelope Count  =   InfoSend Statement Postage Cost  =   ITEM NO. 9.3. MATERIALS SUBMITTED BY: Delia Lugo MEETING DATE: May 28, 2019