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Home My WebLink About2023-02-16 - Board of Directors Meeting Agenda PacketYorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, February 16, 2023, 3:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS Due to the continuing state of emergency declared by the California Governor related to preventing the spread of Coronavirus (COVID-19), and pursuant to California Government Code Section 54953(e), this meeting will be facilitated in a hybrid format. As such, Directors and members of the public may choose to participate in person or by video/teleconference. Information for accessing this meeting by telephone or internet-based service is provided below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: https://us06web.zoom.us/i/81807913512 Telephone: (669) 900-6833 or (346) 248-7799 Meeting ID: 818 0791 3512 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE Brett R. Barbre, President Trudi DesRoches, Vice President Phil Hawkins, Director Tom Lindsey, Director J. Wayne Miller, PhD, Director 5. PUBLIC COMMENTS Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board (or Committee) at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking advice and counsel. 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. Summary of Draft Budget for Fiscal Year 2023-24 7. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 7.1. Conference with Legal Counsel - Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Page 1 of 21 Name of Case: Irvine Ranch Water District v. Orange County Water District, et al. (Los Angeles County Superior Court - Case No. BS168278) 7.2. Conference with Legal Counsel - Existing Litigation Pursuant to Paragraph (1) of Subdivision (d) of Section 54956.9 of the California Government Code Name of Case: David and Christy Busk vs. YLWD (Orange County Superior Court - Case No. 30-2022-01274513-CU-EI-CXC) 8. REPORT FROM CLOSED SESSION 9. ADJOURNMENT 9.1. A workshop meeting is scheduled Monday, February 27, 2023 at 7:00 a.m. The next regular Board meeting is scheduled Thursday, March 2, 2023 at 3:00 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When practical, these materials will also be posted on the District's website at https://ylwd.com/. (GC 54957.5) Accommodations for the Disabled Requests for disability -related modifications or accommodations, including auxiliary aids or services, required for participation in the above -posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC 54954.2(a)) Page 2 of 21 ITEM NO. 6.1. Yorba Linda Water District AGENDA REPORT MEETING DATE: February 16, 2023 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Summary of Draft Budget for Fiscal Year 2023-24 SUMMARY: Staff will present and discuss the proposed FY 2023-24 program budgets for Variable Costs, Capital Improvement Projects, and Capital Outlay. ATTACHMENTS: 1. Slide Deck Page 3 of 21 Y2023-24 Budget Workshop 1 February 1Ezaz3 2/16/2023 YL W 0- I Overview • Production • Variable Costs • Summary of FY2023-24 Budget • 1 -Year CIP roduction 2/16/2023 YL w YL w 25,000.0 15,000.0 N U- N U Q 10,000.0 5,000.0 Production Demand 18,416.0 In Al i n 18,416.0 Prior Year Projected Budget FY2021-22 FYE2022-23 FY2023-24 `Ground Water Import Water X2021 Rate Study Assumptions Total Production Demand Prior Year Projected Budget FY2021-22 FYE2022-23 FY2023-24 Production Demand 19,945.3 18,379.9 19,227.4 2021 Rate Study Assumption 18,416 18,416 18,416 Production Demand -Budget Calculation FY2023-24 Budget Calculation Demand is calculated by taking the last 5 years of actuals and averaging them for each month. JUL AUG SEP FY23 PROJECTIONS - DEMAND TOTAL (Acre -Feet) OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL FY18 2,129.7 2,108.9 1,910.8 1,933.4 1,559.8 1,620.5 1,303.0 1,354.5 1,056.1 1,664.0 1,822.0 1,923.3 20,386.0 FY19 2,277.1 2,283.8 2,010.2 1,782.8 1,555.4 980.2 979.5 602.8 873.1 1,531.7 1,436.1 1,712.8 18,025.5 FY20 2,041.3 2,147.5 1,986.9 1,916.7 1,514.4 855.0 1,179.6 1,326.5 1,008.5 1,121.0 1,840.7 1,914.8 18,852.7 FY21 2,165.0 2,174.7 2,057.5 1,956.7 1,552.6 1,524.9 1,231.4 1,113.1 1,275.9 1,646.8 1,819.3 1,952.1 20,469.8 FY22 2,100.2 2,108.1 1,974.9 1,686.1 1,592.6 1,139.9 1,235.1 1,340.8 1,527.9 1,623.8 1,784.7 1,831.2 19,945.3 FY23 2,033.5 2,050.0 1,877.8 1,611.8 1,254.0 1,033.0 9,860.1 5YRAVG.2,123.4 2,152.8 1,981.5 1,790.8 1,493.8 1,106.6 1,185.7 1,147.5 1,097.5 1,521.4 1,744.6 1,881.8 19,227.4 Production Demand - Rate Study Comparison Historic & Future Demand 2021 Rate Study Assumptions Prior Year Projected Budget Ground Water FY2021-22 FYE2022-23 FY2023-24 Ground Water 7,121.0 15,674.4 16,372.1 Import Water 12,824.3 2,705.5 2,855.3 Total 19,945.3 18,379.9 19,227.4 Import Water % 51% 25% 25% Ground Water 36% 85% 85% Import Water % 64% 15% 15% 2021 Rate Study Assumptions FY2021-22 FY2022-23 FY2023-24 Ground Water 9,023.8 13,812.0 13,812.0 Import Water 9,392.2 4,604.0 4,604.0 Total 18,416.0 18,416.0 18,416.0 Ground Water % 49% 75% 75% Import Water % 51% 25% 25% YL W arlable Costs 2/16/2023 YL W Variable Costs FY23 YE Projections Import Water Purchases 19% ■ Power Costs 16% OCWD Annexation Fee 4% MWDOC Fixed Costs 7% Groundwater Purchases 54% Variable Costs FY2023-24 Budget 7o Allocation ■ MWDOC Fixed Import Water Costs Purchases 7% 18% Power Costs 18% OCWD Annexation Fee 4% Groundwater Purchases 53% Variable Costs Detail Historic & Future Variable Costs 2021 Rate Study Assumptions Prior Year Projected Budget Groundwater Purchases FY2021-22 FYE2022-23 FY2023-24 Groundwater Purchases $ 3,520,814 $ 8,746,315 $ 10,216,190 OCWD Annexation Fee 645,141 688,612 736,815 Power Costs 1,299,314 2,630,993 3,349,129 Import Water Purchases 14,1 14,625 3,041,360 3,379,757 MW DOC Fixed Costs 1,023,492 1,181,574 1,401,420 $ 20,603,386 $ 16,288,855 $ 19,083,311 2021 Rate Study Assumptions FY2021-22 FY2022-23 FY2023-24 Groundwater Purchases $ 4,491,632 $ 6,998,164 $ 7,138,127 OCWD Annexation Fee 531,906 542,544 553,395 Power Costs 1,283,301 1,347,466 1,414,839 Import Water Purchases 10,562,707 5,447,368 5,719,737 MWDOC Fixed Costs 832,046 857,008 882,718 $ 17,701,592 $ 15,192,550 $ 15,708,816 Variable Cost -Budget Calculation FY2022-23 Budget Calculation Variable costs are set by our operating plan. They are then calculated by the rates and fixed costs received from OCWD and MWDOC. Power is calculated from historical trends in cost by acre-feet and the proposed cost increases from our utilities providers. Historic & Future Variable Costs The variance % is the increase/decrease from the previous year. OCWD Replenishment Assessment (ground $507/AF water) Variance % 4% Metropolitan Treated Water Rate (imported $1,104/$1,143/AF water) Variance % 4% OCWD Annexation $645,141 Variance % 24% MWDOC Fixed Costs - Connection Fee $13.00 Variance % 7% MWDOC Fixed Costs - Capacity Fee $302,776 Variance % 57% MWDOC Fixed Costs - Readiness to Serve Fee $390,628 Variance % 40% Power $1,299,314 Variance % -16% $558/AF 10% $1,143/$1,209/AF 6% $688,612 7% $13.75 6% $366,404 21% $504,656 29% $2,630,993 102% $624/AF 12% $1,209/$1,256/AF 4% $736,815 7% $14.71 7% $439,770 20% $587,465 16% $3,349,129 27% Variable Cost -Budget Calculation 2021 Rate Study Assumptions OCWD Replenishment Assessment (ground water) Metropolitan Treated Water Rate (imported water) OCWD Annexation MWDOC Fixed Costs - Connection Fee MWDOC Fixed Costs - Capacity Fee MWDOC Fixed Costs - Readiness to Serve Fee Power 2% $497/AF $507/AF $517/AF 5% $1,104/$1,159/AF $1,159/$1,217/AF $1,217/$1,278/AF 2% $531,906 $542,544 $553,395 3% $12.57 $12.95 $13.34 3% $220,190 $226,796 $233,600 3% $293,936 $302,754 $311,837 5% $1,283,301 $1,347,466 $1,414,839 The variance % is the increase/decrease from actuals to rate study. OCWD Replenishment Assessment (ground water) Metropolitan Treated Water Rate (imported water) OCWD Annexation MWDOC Fixed Costs - Connection Fee MWDOC Fixed Costs - Capacity Fee MWDOC Fixed Costs - Readiness to Serve Fee Power 2% 10% 21% _1% _1% -2% 21% 27% 33% 3% 6% 10% 38% 62% 88% 33% 67% 88% 1% 95% 137% Year to Year - Cost per AF $1,300.00 15% $1,200.00 48% 64% 15% $1,100.00 $378.33 $1,000.00 Variance $900.00 $487.46 Variance 85% $800.00 85% $700.0052% 36% Total Change in $600.00 Cost by 22% $500.00 FY21 Actuals FY22 Actuals FY23 YE Projections FY24 Budget --o--GW IMP Year BPP _ GW IMP FY21 Actuals 52% $ 615.23 $ 1,102.69 FY22 Actuals 36% $ 645.87 $ 1,117.84 FY23 YE Projections 85% $ 721.78 $ 1,147.71 FY24 Budget 85% $ 824.93 $ 1,203.26 *Comparable costs include: Cost of water source + Power YL W 2/16/2023 13 Financial Summary -Consolidated Expenses Expenses (Operating): Variable Costs Rate Study Assumptions Variance Prior Year Projected Budget FY2021-22 FYE2022-23 FY2023-24 $ 20,603,386 $ 16,288,855 $ 19,083,311 $ 17,701,592 $ 15,192,550 $ 15,708,816 16% 7% 21% Fxnancac Expenses (Operating): Variable Costs Rate Study Assumptions Variance Financial Summary -Water Prior Year FY2021-22 $ 20,603,386 $ 17,701,592 16% Projected FYE2022-23 $ 16,288,855 $ 15,192,550 7% Budget FY2023-24 $ 19,083,311 $ 15,708,816 21% Expenses Expenses (Operating): Variable Costs Rate Study Assumptions Variance Financial Summary -Sewer Prior Year FY2021-22 $ 0 $ 0 Projected FYE2022-23 $ 0 $ 0 Budget FY2023-24 $ 0 $ 0 m ER: 1 -Year CIP 9WL 2/16/2023 17 1-Yr CIP FY24 Budget PROJECT NAME YE Projected Budgeted FY2022-23 FY2023-24 BNSF Crossing-Veterans Way and S. Highland $ 1,288,203 $ 687,339 BNSF Crossing-Weir Canyon / YL Blvd 230,960 - Golden Ave Waterline 548 - Hidden Hills BPS Upgrades 1,068,917 69,448 Imperial Waterline Improvement 1,029,110 2,292,330 Lakeview BPS Piping - 360,000 Mountain View Waterline Replacement 493,750 1,101,250 PRS Rehabilitation Project *Based on AMP and Asset Scores 251,563 1,083,013 Resiliency Improvements to District Facilities (AWIA) - 1,420,000 Site and Security Upgrades at District Facilities (AWIA) 401,993 240,000 Timber Ridge BPS Pump Replacement 1,537,269 4,302,672 Well 22 Equipping 2,505,360 5,000 Well 23 Drilling & Equipping 2,258 - Well Rehabilitation Project 40,289 340,000 Total Water CIP $ 8,850,220 $ 11,901,052 Green Crest Lift Station Rehab $ 51,167 $ 33,833 Main Street Sewer Replacement 200,000 495,000 Sewer System Rehabilitation and Replacement Project 15,000 471,750 Total Sewer CIP $ 266,167 $ 1,000,583 CIP Total $ 9,116,387 $ 12,901,635 YE Projected Budgeted CAPITAL OUTLAY FY2022-23 FY2023-24 MWDSC & YLWD Helicopter Hydrant $ - $ 200,000 Vehicle Replacement - 480,000 Outlay Total $ - $ 680,000 Grand Total $ 9,116,387 $ 13,581,635 *Grant amount to be awarded. Green Crest Lift Station Rehab will be awarded $300,000 and MWDSC & YLWD Helicopter Hydrant will be awarded $500,000. Each project cost listed represents YLWD's portion of the cost. BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING 8 SUPPLEMENTAL MATERIAL ITEM NO. 6.1. 5 -Yr CI P FY23 Budget PROJECT NAME FY2022-23 FY2023-24 FY2024-25 FY2025-26 FY2026-27 TOTAL Hidden Hills BPS Upgrades 1,407,603 - 1,407,603 Timber Ridge BPS Pump Replacement 4,199,550 1,399,850 5,599,400 Well 22 Equipping 1,901,208 - 1,901,208 BNSF Crossing -Weir Canyon / YL Blvd 134,655 134,655 BNSF Crossing -Veteran's Village and Highland 1,975,557 - - - - 1,975,557 Resiliency Improvements to District Facilities (AWIA) 220,000 275,000 275,000 275,000 1,045,000 Site and Security Upgrades at District Facilities (AWIA) 220,000 275,000 275,000 275,000 1,045,000 Well Rehabilitation Project 165,000 165,000 165,000 165,000 660,000 Lakeview BPS Piping 330,000 - - - - 330,000 Waterline Replacement *Based on AMP and Leak History 10,000 2,877,600 1,210,000 1,210,000 1,210,000 6,517,600 PRS Rehabilitation Project *Based on AMP and Asset Scores - 803,100 1,320,000 1,320,000 1,320,000 4,763,100 Golden Ave Waterline 266,805 - - - 266,805 Santiago BPS Rehab 1,819,070 - 1,819,070 Well 23 Drilling & Equipping - 1,734,900 2,705,000 - - 4,439,900 Total Water CIP $ 9,958,573 $ 9,506,325 $ 5,950,000 $ 3,245,000 $ 3,245,000 $ 31,904,898 Main Street and YL Pines Sewer 813,000 - - - - 813,000 Green Crest Lift Station Rehab - - 385,500 - 385,500 Sewer System Rehabilitation and Replacement Project 396,000 - 440,000 - 836,000 Buena Vista Sewer Main Improvements - - 1,130,500 1,130,500 Total Sewer CIP $ 813,000 $ 396,000 $ 385,500 $ 440,000 $ 1,130,500 $ 3,165,000 CIP Total $ 10,771,573 $ 9,902,325 $ 6,335,500 $ 3,685,000 $ 4,375,500 $ 35,069,898 CAPITAL OUTLAY FY23 FY24 FY25 FY26 FY27 TOTAL Network Redesign 30,000 - - - - 30,000 Records Scanner 8,000 - - - - 8,000 Operations Department 1,725,000 516,000 505,000 710,000 820,000 4,276,000 Outlay Total $ 1,763,000 $ 516,000 $ 505,000 $ 710,000 $ 820,000 $ 4,314,000 Grand Total $ 12,534,573 $ 10,418,325 $ 6,840,500 $ 4,395,000 $ 5,195,500 $ 39,383,898 5/24/2022