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Home My WebLink About2009-07-01 - Board of Directors Meeting Agenda Packet 'rb Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Wednesday, July 1, 2009,4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL John W. Summerfield, President William R. Mills, Vice President Paul R. Armstrong Michael J. Beverage Ric Collett 4. ADDITIONS/DELETIONS TO THE AGENDA 5. 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 five minutes. 6. 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. 6.1. Water Rate Increase 7. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 7.1. Notice of Public Hearing to Consider 2009 Water Rate Report Recommendation: That the Board of Directors approve the Notice of Public Hearing to Consider the 2009 Water Rate Report and direct staff to provide notification of the hearing to District customers according to Proposition 218 requirements. 8. ADJOURNMENT 8.1. The next regular meeting of the Board of Directors will be held July 9, 2009 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. VOLUMETRIC FIXED RATE COMPONENT (25% REVENUE TARGET) Class 3/4" 5/8" 1" 1 1/2" 2" 3" 4" 6" 10" Total 1 2 3 4 5 6 7 Exclude DCDAs 9 10 11 12 13 14 1417 151 5539 58 44 7073 3 % of Total 32 29 11 1 4.5% 0.0% 0.0% 76 7 100.0% 134 127 575 1 844 65 139 77 118 1 1 401 Current Flat Rate 1 Annual Revenue 1 1 $2,364,720.00 12 1 1 1.00 1.50 15 4077 10 10389 90 24 Factor by size sq 0.56 0.39 1.00 14590 26 21 16.00 36.00 100.00 Charge/mo. $12.80 $8.89 47 $51.19 $91.00 $204.75 6 3 $2,275.00 Annual Revenue $854,882 9 24 1 157 74 178 1 1 1 437 3 New Revenue Total $6,836,436.14 3 8 60 84 152 0 0 5593 26 16399 522 1052 3 4 1 1 23601 Total % of Total 23.7% 0.1% 69.5% 2.2% 4.5% 0.0% 0.0% 0.0% 0.0% 100.0% meters 1 23600 @$8.35/mo Current Flat Rate $8.35 Annual Revenue Current Rate Total $2,364,720.00 size, inches 0.75 0.63 1.00 1.50 2.00 3.00 4.00 6.00 10.00 Factor by size sq 0.56 0.39 1.00 2.25 4.00 9.00 16.00 36.00 100.00 Charge/mo. $12.80 $8.89 $22.75 $51.19 $91.00 $204.75 $364.00 $819.00 $2,275.00 Annual Revenue $854,882 $533 $4,476,927 $320,639 $1,148,784 $7,371 $17,472 $9,828 $27,300 New Revenue Total $6,836,436.14 REVENUE IMPROVEMENT >>I $4,471,716.14 Ave. Usage # Accts % Total Cum % Consumption % Total Cum % 0-10 3607 16.7% 16.7% 242815 3.7% 3.7% 11-20 6350 29.4% 46.1% 1211129 18.6% 22.3% 21-30 5708 26.4% 72.5% 1715584 26.3% 48.6% 31-40 2926 13.5% 86.1% 1227352 18.8% 67.5% 41-50 1412 6.5% 92.6% 760863 11.7% 79.1% 51-60 697 3.2% 95.8% 460136 7.1% 86.2% 61-80 574 2.7% 98.5% 468955 7.2% 93.4% 81-100 184 0.9% 99.3% 196255 3.0% 96.4% 101-200 132 0.6% 100.0% 202911 3.1% 99.5% 201-500 10 0.0% 100.0% 31984 0.5% 100.0% 21600 100% 6517984 100.0% Average Monthly Water Usage FY 2004-06 (Residential 21 ,600 accts) 7000 6350 6000 U) ❑# Accts a 5000 4000 0-1 3000 2926 U 0 2000 1412 1000 697 574 184 132 10 0 - 61 61 Q�, N�) (f Average Usage Range (CCF) Percentage Accounts by Range FY 2004-06 (Residential 21 ,600 accts) 0.35 0.3 a 29.4% 0.25 0.2 O n 0. 15 � 0. 1 0 0.05 0 0 0 �b NS (f Average Usage Range (CCF) 26.4% ❑% Total 16.7% 0 6.5% o 0.9% 0.6% 0.0% 7/6/2009 Yorba Linda Water District BOARD OF DIRECTORS WORKSHOP MEETING Wednesday, July 1, 2009 4:00 PM DISCUSSION ITEMS 1. Water Rate Increase • FY 2009/10 Water Budget Deficit • Target Revenue • Usage Patterns and Percentages • Fixed Charge & Commodity Charge Ratios • Flat Rates Verses Fixed Rates • Bill Comparisons • Conservation Effects (Plus and Minus) 1 7/6/2009 FY 2009/10 Budget Water Deficit FY 2009/10 WATER REVENUES Budget Revenue (Operating) FY 2009/10 Water Sales $ 16,359,073 Fixed Charge $ 2,364,720 Other $ 637,900 $ 19,361,693 Revenue (Non-Operating) Property Taxes $ 1,092,000 Interest & Investments $ 127,900 Other $ 105,500 $ 1,325,400 Total $ 20,687,093 2 7/6/2009 FY 2009/10 WATER EXPENSES Budget Expenses (Operating) FY 2009/10 Depreciation & Amortization $ 3,945,750 Variable Water Costs (GW, Import & Power) $ 12,612,700 Salaries and Benefits $ 6,538,008 Supplies & Services $ 4,032,096 $ 27,128, 554 Expenses (Non-Operating) Interest on Long Term Debt $ 1,981,300 Other $ 194,500 $ 2,175,800 Total $ 29,304,354 FY 2009/10 WATER BUDGET DEFICIT Budget FY 2009/10 Net Revenue $ 20,687,093 Net Expenses Debt Obligation (Principal Payment) Vehicle & Equipment Outlay Net 3 7/6/2009 TARGET REVENUE Assumptions • Fund 50% of Depreciation & Amortization • Set Fixed Revenue (Monthly Charge) at 25% Total Revenue Need • Property Tax Revenue Transferred to Capital Reserves • Commodity Rate Generates 75% of Total Revenue need • Allocation Penalties not Considered in Formulas and Models for this Discussion 4 7/6/2009 FY 2009/10 DEFICIT DEFERRALS Budget FY 2009/10 Net Gain or Loss Depreciation deferral (50%) $ 1,972,875 Transfers for Veh & Equip Outlay $ 628,500 Deferred Subtotal $ 2,601,375 Revenue Gain Required FY 2009/10 Revenue Target Budget FY 2009/10 Operating Revenue $ 19,361,693 Deficit Compensation $ 7,469,386 Target $ 26,831,079 5 7/6/2009 FY 2009/10 Revenue Target FY 2009/10 Revenue - Fixed Charge (25%) $ 6,707,770 Revenue - Commodity Charge (7591o) $ 20,123,309 Total $ 26,831,079 Volumetric vs. Flat Rate Class 314" 58" V 11 T' 2" 3" 4" 6" 10" Total 1 1417 15 5539 58 44 7073 2 3 32 29 11 1 76 3 134 127 575 1 844 4 65 139 77 118 1 1 401 5 1 1 6 1 12 1 1 15 7 4077 10 10389 90 24 14590 Exclude DCDAs 26 21 47 9 6 3 9 10 24 1 157 74 178 1 1 1 437 11 3 3 12 8 60 84 152 13 0 14 0 Total 5593 26 16399 522 1052 3 4 1 1 23601 %ofTotal 23.71% 0.1% 69.5`% 2.21% 4506 0.006 0.0% 0.0`6 0.006 100.0% meters 23600 9 $8.35imo Current Flat Rate $8.35 Annual Revenue Current Rate Total $2,364,720.00 size. inches 0.75 0.63 1.00 1.50 2.00 3.00 4.00 6.00 10.00 Factor by sizes 0.56 0.39 1.00 2.25 4.00 9.00 16.00 36.00 100.00 Charge ~mo. $12.80 $8.89 $22.75 $51.19 $91.00 $204.75 $364.00 $819.00 $2.275.00 Annual Revenm$854,882 $533 $4,476,927 $320.639 $1,148,784 $7,371 $17,472 $9,828 $27,300 N-Revenue Total $6,836,436.14 REVENUE IMPROVEMENT » $4,a71,716.14 6 7/6/2009 QUESTIONS 7