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Home My WebLink About2024-03-28 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 28, 2024, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS This meeting will be held in person. For public convenience, the meeting can also be accessed via internet-based service or telephone as indicated below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: https://us06web.zoom.us/j/89620937944 Telephone: (669) 444-9171 or (669) 900-6833 Meeting ID: 896 2093 7944 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL Trudi DesRoches, President Tom Lindsey, Vice President Brett R. Barbre, Director Phil Hawkins, Director Gene Hernandez, Director 5. ADDITIONS/DELETIONS TO THE AGENDA Items may be added to the agenda upon determination by a two-thirds vote of the Board, or a unanimous vote if only three Directors are present, that there is a need to take immediate action which came to the District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2)) 6. AB 2449 TELECONFERENCE REQUESTS 7. 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) 8. DISCUSSION ITEMS 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. 8.1. Fiscal Year 2024-25 Budget Workshop #2 8.2. Fiscal Year 2024-25 Proposed Water & Sewer Customer and Developer Fees 9. ADJOURNMENT 9.1. The next regular Board meeting is scheduled Thursday, April 11, 2024 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Page 1 of 43 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 43 ITEM NO. 8.1. AGENDA REPORT MEETING DATE: March 28, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Paige Appel, Budget Analyst SUBJECT: Fiscal Year 2024-25 Budget Workshop #2 Staff will present and discuss the proposed Fiscal Year 2024-25 program budgets for Revenue, Supplies & Services, Non-Operating & Other Key Updates. ATTACHMENTS: 1. Slide Deck - FY24-25 Budget Workshop 2 2. 5-Year CIP - Sheet 1A Page 3 of 43 FY2024-25 Budget Workshop 2 March 28, 2024 3/28/2024 1Page 4 of 43 Overview •Summary of Rates & Other Considerations •Revenue •Supplies & Services •Non-Operating Expenses •Summary of FY2024-25 Budget •Updated 5- Year CIP & Outlay 3/28/2024 2Page 5 of 43 Summary of Rates & Other Considerations 3/28/2024 3Page 6 of 43 3/28/2024 4 FY2024-25 w/ 9% Wtr & 15% Swr Adj With Pass-Through $0.34 FY2024-25 w/ 9% Wtr & 15% Swr Adj FY2023-24 w/ 9% Wtr & 15% Swr Adj With Pass-Through $0.31Billing $131.28$124.48$120.26Monthly Water Related Charges $13.77$13.77$11.97Monthly Sewer Related Charges $12.27$12.27$11.25Capital Finance Charge $157.32$150.52$143.48Avg Monthly Bill w/ CFC (20 units) Percentage increase of 9.65% Cost increase of $13.84 Effect on Customer Bill Current AssumptionsCurrent Assumptions Page 7 of 43 FY2024-25 Proposed Rates 3/28/2024 5 Monthly Service Charge Meter Size $ 35.82 5/8 $ 35.82 3/4 $ 55.88 1 $ 105.95 1 1/2 $ 166.04 2 $ 356.39 3 $ 636.87 4 $ 1,608.57 6 Annual Capital Finance Charge Meter Size $ 88.32 5/8 $ 88.32 3/4 $ 147.24 1 $ 294.12 1 1/2 $ 470.16 2 $ 1,028.04 3 $ 1,849.92 4 $ 4,698.12 6 Commodity Rate $ 3.43 Water Rates 9% Sewer Rates 15% Monthly Private Fire Protection Charge Meter Size $ 10.19 4 $ 26.66 6 $ 55.10 8 $ 97.88 10 Monthly Service Charge Meter Type $ 13.77 Residential – SFR $ 13.25 Residential Master Metered – MFR $ 13.77 Commercial Usage Rates Tier $ 0.00Tier 1 (0-7 ccfs per month) $ 0.53Tier 2 (8+ ccfs per month) Commodity Rate Plus Pass- Through $ 3.77 Pass-Through $ 0.34 Page 8 of 43 Revenue 3/28/2024 6Page 9 of 43 Retail Water Consumption 3/28/2024 7 FY2024-25 Budget Calculation Retail water consumption is calculated from historic trends and production demand. “PT” is Pass-Through. Budget FY2024-25 Projected FYE2023-24 Prior Year FY2022-23 7,558,749 6,900,672 6,631,701 Consumption (CCF) 17,353 AF 15,842 AF 15,224 AF Consumption in Acre-Feet $ 28,267,292 $ 23,481,771 $ 18,920,836 Revenue ($) $ 3.43 + PT $ 0.34 = $ 3.77$ 3.14 + PT $ 0.31= $ 3.45$ 2.88 + PT $ 0.02 = $ 2.90Consumption Unit Price 15,224 AF 6,631,701 CCF 15,842 AF 6,900,672 CCF 17,353 AF 7,558,749 CCF 16,943 AF 7,380,219 CCF 16,943 AF 7,380,219 CCF 16,943 AF 7,380,219 CCF 6.0M 6.3M 6.5M 6.8M 7.0M 7.3M 7.5M 7.8M Prior Year FY2022-23 Projected FYE2023-24 Budget FY2024-25 CC F Retail Consumption Consumption (CCF)2021 Rate Study Assumptions AF: Acre-Feet CCF: Centum cubic feet (100 cubic feet) Page 10 of 43 Revenue Analysis 3/28/2024 8 Water Revenue (Res.) Water Revenue (Comm & Fire) Water Revenue (Irrigation) Service Charges Property Tax - CFC Sewer Charge Revenue Sewer Parcel Assmnt Other Operating Revenue Interest Income Property Tax Other Non- Operating Revenue FY23 Prior Year 14,291,852 1,593,082 3,145,517 14,642,515 3,207,414 3,097,015 356,187 1,273,958 1,279,458 2,323,369 973,139 FY24 YE Projections 17,425,254 1,871,585 4,304,440 16,003,052 3,597,389 3,574,492 412,899 1,060,425 1,540,609 2,526,612 795,446 FY25 Budget 21,143,937 2,223,697 5,031,573 17,546,715 3,890,245 4,252,641 468,797 1,565,133 1,710,000 2,564,511 864,462 $0.0M $2.0M $4.0M $6.0M $8.0M $10.0M $12.0M $14.0M $16.0M $18.0M $20.0M $22.0M $24.0M Revenue Analysis Page 11 of 43 Revenue Rate Study Comparison Historic & Future Revenue 2021 Rate Study Assumptions 3/28/2024 9 FY2024-25FY2023-24FY2022-23 $ 52,252,459 $ 47,762,775 $ 43,675,424 Operating 3,031,590 2,957,884 2,885,451 Non-Operating $ 55,284,049 $ 50,720,659 $ 46,560,875 Budget FY2024-25 Projected FYE2023-24 Prior Year FY2022-23 $ 56,122,738 $ 48,249,536 $ 41,607,540 Operating 5,138,973 4,862,667 4,575,966 Non-Operating $ 61,261,711 $ 53,112,203 $ 46,183,506 Variance from Assumptions $ 5,977,662 $ 2,391,544 $ (377,369)Rate Study Variance $ 11%5%-1%Rate Study Variance % $46,183,506 $53,112,203 $61,261,711 $46,560,875 $50,720,659 $55,284,049 $0.0M $10.0M $20.0M $30.0M $40.0M $50.0M $60.0M $70.0M Prior Year FY2022-23 Projected FYE2023-24 Budget FY2024-25 Revenue - Rate Study Comparison Non-Operating Revenue Operating Revenue 2021 Rate Study Assumptions Page 12 of 43 Supplies & Services 3/28/2024 10Page 13 of 43 Supplies & Services - Rate Study Comparison 2021 Rate Study Assumptions Historic & Future 3/16/2022 11 Budget FY2024-25 Projected FYE2023-24 Prior Year FY2022-23Supplies & Services $ 9,211,978 $ 8,569,678 $ 7,007,739 Water 1,413,443 1,342,057 1,092,933 Sewer $ 10,625,421 $ 9,911,735 $ 8,100,672 FY2024-25FY2023-24FY2022-23Supplies & Services $ 6,185,916 $ 6,059,045 $ 5,533,227 Water 1,045,102 1,023,626 1,002,617 Sewer $ 7,231,018 $ 7,082,671 $ 6,535,844 Variance from Assumptions $ 3,394,403 $ 2,829,064 $ 1,564,828 Rate Study Variance $ 47%40%24%Rate Study Variance % Total: $8,100,672 Total: $9,911,735 Total: $10,625,421 $6,535,844 $7,082,671 $7,231,018 $0.0M $2.0M $4.0M $6.0M $8.0M $10.0M $12.0M Prior Year FY2022-23 Projected FYE2023-24 Budget FY2024-25 FY25 Budget Supplies & Services Supplies & Services - Sewer Supplies & Services - Water 2021 Rate Study Assumptions Page 14 of 43 Supplies & Services Analysis 3/28/2024 12 Variances Explanations for Impactful Expenses – 2025 Budget to 2024 Projections Contractual Services – The increase of 17% from FY24 Projections is due to additional water quality testing, additional essential landscape services and a class & compensation study. Data Processing – The increase of 13% from FY24 Projections is due to allocation of purchased software from consultant. Board Election Communications Contractual Services Data Processing District Meetings & Events Dues & Memberships 2023 Actuals 90,206 192,173 687,005 299,157 38,512 90,980 2024 Projections 0 271,092 717,953 465,221 57,818 124,345 2025 Budget 120,000 279,940 839,489 523,946 69,895 125,960 2021 Rate Study 97,960 263,058 580,539 354,665 50,951 109,050 $97,960 $263,058 $580,539 $354,665 $50,951 $109,050 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Supplies & Services FY23 Actuals, FY24 Projections, FY25 Budget Page 15 of 43 Supplies & Services Analysis Cont. 3/28/2024 13 Variances Explanations for Impactful Expenses – 2025 Budget to 2024 Projections Insurance – The increase of 16% from FY24 Projections is due to higher cost of property insurance. Maintenance – The increase of 5% from FY24 Projections is due to costs of water maintenance projects. Materials – The decrease of 7% from FY24 Projections is due to the completion of multiple Production repairs, valve repairs, and SCADA projects in FY24. Fees & Permits Insurance Maintenance Materials Non Capital Equipment Office Expense 2023 Actuals 489,719 368,632 1,754,992 1,219,610 294,696 46,816 2024 Projections 528,266 454,000 1,883,737 2,215,322 328,508 47,550 2025 Budget 551,650 525,000 1,973,300 2,070,150 323,300 49,250 2021 Rate Study 551,175 365,917 781,481 2,001,401 203,398 40,672 $551,175 $365,917 $781,481 $2,001,401 $203,398 $40,672 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Supplies & Services FY23 Actuals, FY24 Projections, FY25 Budget Page 16 of 43 Variances Explanations for Impactful Expenses – 2025 Budget to 2024 Projections Professional Services – The increase of 18% from FY24 Projections is due to consulting services for the Santiago Reservoir stability study, the Fairmont Reservoir structural evaluation, Highland Access Road and Green Crest Drive. Supplies & Services Analysis Cont. 3/28/2024 14 Professional Development Professional Services Travel & Conferences Uncollectible Accounts Utilities Vehicle Expenses 2023 Actuals 46,775 1,348,431 34,669 27,655 202,864 867,783 2024 Projections 71,335 1,628,051 99,364 15,000 244,000 760,173 2025 Budget 59,375 2,019,146 131,170 15,000 236,000 712,850 2021 Rate Study 68,394 1,054,612 52,173 10,608 234,290 410,675 $68,394 $1,054,612 $52,173 $10,608 $234,290 $410,675 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Supplies & Services FY23 Actuals, FY24 Projections, FY25 Budget Page 17 of 43 Non-Operating Expenses 3/28/2024 15Page 18 of 43 FY2024-25FY2023-24FY2022-23 $ 1,233,581 $ 1,306,331 $ 1,374,681 Interest Expense 163,327 160,124 156,985 Other Expense $ 1,396,908 $ 1,466,455 $ 1,531,666 Non-Operating Expenses - Rate Study Comparison 3/28/2024 16 $ 1,136,116 $ 1,243,079 $ 1,266,293 Rate Study Variance $ 81%85%83%Rate Study Variance % Variance from Assumptions 2021 Rate Study Assumptions Historic & Future Budget FY2024-25 Projected FYE2023-24 Prior Year FY2022-23 $ 2,513,494 $ 2,690,019 $ 2,408,426 Interest Expense $ 19,530 $ 19,515 $ 389,533 Other Expense $ 2,533,024 $ 2,709,534 $ 2,797,959 Page 19 of 43 Summary of FY2024-25 Budget 3/28/2024 17Page 20 of 43 Financial Summary - Consolidated Budget FY2024-25 Projections FY2023-24 Prior Year FY2022-23Revenue $ 56,122,738 $ 48,249,536 $ 41,607,539 Revenue (Operating) 5,138,973 4,862,667 4,575,966 Revenue (Non-Operating) $ 61,261,711 $ 53,112,203 $ 46,183,505 Total Revenue $ 55,284,050 $ 50,720,658 $ 46,560,875 Rate Study Assumptions 11%5%-1%Variance % 05/25/2023 Expenses Expenses (Operating): $ 20,658,542 $ 18,225,975 $ 15,308,429 Variable Costs 15,746,996 13,737,956 10,348,225 Salary Related Expenses (545,000)--(Less Capitalized Labor) 10,625,421 9,911,735 8,100,671 Supplies & Services 2,533,024 2,709,534 2,797,959 Expenses (Non-Operating) $ 49,018,983 $ 44,585,200 $ 36,555,284 Total Expenses $ 42,144,833 $ 40,330,198 $ 38,222,320 Rate Study Assumptions 16%11%-4%Variance % $ 12,242,728 $ 8,527,003 $ 9,628,221 Net Position Before Capital Contributions & Depreciation -445,291 26,022,951 Capital Contributions 9,141,181 9,103,071 9,094,787 Depreciation $ 3,101,547 $ (130,777)$ 26,556,385 Total Net Income (Loss) 18Page 21 of 43 Financial Summary - Water Budget FY2024-25 Projections FY2023-24 Prior Year FY2022-23Revenue $ 51,236,420 $ 44,218,117 $ 38,102,054 Revenue (Operating) 4,835,869 4,557,127 4,334,643 Revenue (Non-Operating) $ 56,072,289 $ 48,775,244 $ 42,436,697 Total Revenue $ 50,456,170 $ 46,516,980 $ 42,892,602 Rate Study Assumptions 11%5%-1%Variance % 05/25/2023 Expenses Expenses (Operating): $ 20,658,542 $ 18,225,975 $ 15,308,429 Variable Costs 13,214,585 11,622,593 8,782,887 Salary Related Expenses (445,000)--(Less Capitalized Labor) 9,211,978 8,569,678 7,007,737 Supplies & Services 2,526,899 2,703,562 2,782,215 Expenses (Non-Operating) $ 45,167,004 $ 41,121,808 $ 33,881,268 Total Expenses $ 38,535,306 $ 36,918,084 $ 34,994,157 Rate Study Assumptions 17%11%-3%Variance % $ 10,905,285 $ 7,653,436 $ 8,555,429 Net Position Before Capital Contributions & Depreciation $ 4,133,494 $ 4,134,219 $ 2,728,919 Debt Service 3.252.50 4.02 Ratio 2.25 2.25 2.25 Per Policy -210,235 25,606,815 Capital Contributions 7,602,536 7,597,179 7,566,538 Depreciation $ 3,302,749 $ 266,492 $ 26,595,706 Total Net Income (Loss) 19Page 22 of 43 Financial Summary - Sewer Budget FY2024-25 Projections FY2023-24 Prior Year FY2022-23Revenue $ 4,886,318 $ 4,031,419 $ 3,505,485 Revenue (Operating) 303,104 305,540 241,323 Revenue (Non-Operating) $ 5,189,422 $ 4,336,959 $ 3,746,808 Total Revenue $ 4,827,880 $ 4,203,678 $ 3,668,273 Rate Study Assumptions 7%3%2%Variance % 05/25/2023 Expenses Expenses (Operating): $ 2,532,411 $ 2,115,363 $ 1,565,338 Salary Related Expenses (100,000)--(Less Capitalized Labor) 1,413,443 1,342,057 1,092,934 Supplies & Services 6,125 5,972 15,744 Expenses (Non-Operating) $ 3,851,979 $ 3,463,392 $ 2,674,016 Total Revenue $ 3,609,527 $ 3,412,114 $ 3,228,163 Rate Study Assumptions 7%2%-17%Variance % $ 1,337,443 $ 873,567 $ 1,072,792 Net Position Before Capital Contributions & Depreciation -235,056 416,136 Capital Contributions 1,538,645 1,505,892 1,528,249 Depreciation $ (201,202)$ (397,269)$ (39,321)Total Net Income (Loss) 20Page 23 of 43 5-Year CIP 2/22/2024 21Page 24 of 43 22 5-Yr CIP FY25 Budget 2/22/2024 TOTALFY29FY28FY27FY26FY25PROJECT NAME Pressure Regulating Station Projects 1,150,000 $-$-$-$-$1,150,000 $PRS Replacement Program 6,200,000 300,000 300,000 750,000 250,000 4,600,000 Waterline Projects 308,000 ----308,000 Golden Avenue Waterline ------Reservoir Projects 1,040,000 ---650,000 390,000 Fairmont Reservoir Rehab 225,000 ---225,000 -Little Canyon Reservoir Valve ------Booster Pump Station Projects 372,000 ----372,000 Timber Ridge BPS 650,000 500,000 150,000 ---Lakeview BPS Rehab & Generator ------Box Canyon BPS Improvements 1,300,000 500,000 650,000 150,000 --Yorba Linda BPS Rehab & Generator 2,000,000 --800,000 1,000,000 200,000 Santiago BPS Rehab & Generator ------Well Projects 420,000 ----420,000 Well Rehabilitation (No. 1, 18) 620,000 --200,000 420,000 -Well Rehabilitation (No. 10, 21 & 12) 10,153,000 6,703,000 2,127,800 897,700 424,500 -Well 23 Drilling & Equipping 975,000 --325,000 580,000 70,000 Well VFD Upgrades 25,413,000 $8,003,000 $3,227,800 $3,122,700 $3,549,500 $7,510,000 $Total Water CIP Sewer Main Projects 2,261,000 $1,130,500 $1,130,500 $-$-$-$Buena Vista Sewer Main Improvements 4,026,000 -330,000 2,874,000 822,000 -Kellogg Dr Sewer Main Upsize ------Sewer System Rehabilitation & Replacement Projects 400,000 ---400,000 -FY25-26 Sewer CIPP Rehab Project 500,000 -500,000 ---FY27-28 Sewer CIPP Rehab Project ------Lift Station Projects 700,000 ----700,000 Green Crest Sewer Lift Station ($300k Grant) 7,887,000 $1,130,500 $1,960,500 $2,874,000 $1,222,000 $700,000 $Total Sewer CIP 33,300,000 $9,133,500 $5,188,300 $5,996,700 $4,771,500 $8,210,000 $CIP Total TOTALFY29FY28FY27FY26FY25CAPITAL OUTLAY 150,000 $-$-$-$-$150,000 $Building 2 Upgrades - Locker Rooms 36,000 ----36,000 Network Switches 74,500 ----74,500 Replace Car Wash 35,000 ----35,000 Replace Light Tower 7,000 ----7,000 Plotter 4,325,000 1,215,000 1,225,000 415,000 1,020,000 450,000 Vehicle Replacements 4,627,500 $1,215,000 $1,225,000 $415,000 $1,020,000 $752,500 $CAPITAL OUTLAY TOTAL 37,927,500 $10,348,500 $6,413,300 $6,411,700 $5,791,500 $8,962,500 $GRAND TOTAL - CAPITAL IMPROVEMENT & CAPITAL OUTLAY Page 25 of 43 Revised 3/18/2024 4:45 pm SHEET 1A - Draft Projected Baseline CIP FY24-25 Through FY28-29 (Using Existing Rate Structure 9% Water, 15% Sewer Annual Increases through FY25-26) FUNDING CLASS PROJECT NAME FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 TOTAL FF/AMP Timber Ridge Booster Pump Station (BPS)372,000$ 372,000$ FF/AMP Waterline Projects 4,600,000$ 250,000$ 750,000$ 5,600,000$ BPP/AMP/O Well Rehabilitation (Wells No. 1, 18)420,000$ 420,000$ FF/BPP/AMP Santiago BPS Rehab. and Natural Gas Emergency Back Up Generator (Also see Pay-Go)200,000$ 1,000,000$ 100,000$ 1,300,000$ S/AMP/O PRS Replacement Program (Applecreek, Willowbrook, Stone Canyon, Paseo Del Prado, & Adobe)1,150,000$ 1,150,000$ Water (Bonds) Total 6,742,000$ 1,250,000$ 850,000$ -$ -$ 8,842,000$ FF/AMP Santiago BPS Rehab and Natural Gas Emergency Back Up Generator (Also see Bonds) 700,000$ 700,000$ FF/AMP Waterline Projects 300,000$ 300,000$ 600,000$ BPP/AMP/O Well Rehabilitation (Wells No. 10, 21 and 12)420,000$ 200,000$ 620,000$ BPP/AMP Yorba Linda Booster Pump Station Rehab. and Natural Gas Emergency Back Up Generator 150,000$ 650,000$ 500,000$ 1,300,000$ BPP/AMP Lakeview Booster Pump Station Rehab. and Natural Gas Emergency Back Up Generator 150,000$ 500,000$ 650,000$ BPP/O Little Canyon Reservoir Motor Operated Valve (MOV)225,000$ 225,000$ BPP/O Well VFD Upgrades (Wells No. 20, 21, 22)70,000$ 580,000$ 325,000$ 975,000$ BPP Well 23 Drilling & Equipping (Offsite well)424,500$ 897,700$ 2,127,800$ 6,703,000$ 10,153,000$ AMP Fairmont Reservoir Rehabilitation 390,000$ 650,000$ 1,040,000$ O Golden Avenue Waterline - Pending City of Placentia Schedule 308,000$ 308,000$ Water (Pay-Go) Total 768,000$ 2,299,500$ 2,272,700$ 3,227,800$ 8,003,000$ 16,571,000$ Water (Bonds & Pay-Go) Total 7,510,000$ 3,549,500$ 3,122,700$ 3,227,800$ 8,003,000$ 25,413,000$ AMP/O Buena Vista Sewer Main Improvements -$ -$ 1,130,500$ 1,130,500$ 2,261,000$ AMP/O Kellogg Dr Sewer Main Upsize 822,000$ 2,874,000$ 330,000$ -$ 4,026,000$ AMP/O FY25-26 Sewer CIPP Rehabilitation Project 400,000$ 400,000$ AMP/O FY27-28 Sewer CIPP Rehabilitation Project 500,000$ 500,000$ Green Crest Sewer Lift Station (Pay-Go)700,000$ 700,000$ *Green Crest Sewer Lift Station (Grant)300,000$ 300,000$ Sewer (Pay-Go Only) Total 700,000$ 1,222,000$ 2,874,000$ 1,960,500$ 1,130,500$ 7,887,000$ Sewer (Grants* Only) Total 300,000$ -$ -$ -$ -$ 300,000$ Sewer (Pay-Go & Grants*) Total 1,000,000$ 1,222,000$ 2,874,000$ 1,960,500$ 1,130,500$ 8,187,000$ TOTAL WATER AND SEWER CIP EXCLUDING GRANT ALLOCATION 8,210,000$ 4,771,500$ 5,996,700$ 5,188,300$ 9,133,500$ 33,300,000$ Priority 1 FF, S Fire Flow/Fire Hardening, Safety Priority 3 AMP Asset Management Plan Priority 2 BPP Basin Production Percentage (Maximize groundwater to reliably achieve 85% BPP) Priority 4 O Optimization Note: CIP does not include Green Crest Drive and Highland Reservoir Access Road Improvements WATER Bonds Pay-Go Pay-Go WATER SEWER S/AMP/O Page 26 of 43 ITEM NO. 8.2. AGENDA REPORT MEETING DATE: March 28, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager Sophia Phuong, Accounting Supervisor Rosanne Weston, Engineering Manager SUBJECT: Fiscal Year 2024-25 Proposed Water & Sewer Customer and Developer Fees Staff will present and discuss the proposed Fiscal Year 2024-25 Water & Sewer Customer and Developer Fees. ATTACHMENTS: 1. Slide Deck - FY24-25 Proposed Water & Sewer Developer Fees Page 27 of 43 PROPOSED CUSTOMER AND DEVELOPER FEES Fiscal Year 2024-25 3/28/24 Board of Directors Workshop 1Page 28 of 43 Water Customer And Developer Fees 3/28/2024 2Page 29 of 43 Customer Service Fees 3/28/2024 Board of Directors Workshop 3 Fee Increase or (Decrease) FY24-25 Fee per Occurrence FY23-24 Fee per OccurrenceTypes of Service Fees $10$50$40New Account Set up Fee $(10)$15$25Notice of Discontinuance $0$50$50Shut-Off Due to Non-Payment $0$50$50Establish Service $5$230$225Callout After Hours $5$95$90Tampered Lock - Residential $5$150$145Tampered Lock - Commercial $10$140$130Meter Removal $10 $140(Plus addt’l labor and materials due to customer tampering) $130(Plus addt’l labor and materials due to customer tampering) Meter Replacement $(10)$40$50Return Payment Fee $(5)$25$30Stop Payment Of District Check Page 30 of 43 Customer Service Fees Continued 3/28/2024 Board of Directors Workshop 4 Fee Increase or (Decrease)FY24-25 FeeFY23-24 FeeTypes of Service Fees $0 $145 (Plus cost of independent laboratory testing if applicable) $145 (Plus cost of independent laboratory testing if applicable) Water Meter Testing Fee Residential Customer Deposit $0$0 per Meter$0 per MeterPotential of Risk “Green” $(5)$180 per Meter$185 per MeterPotential of Risk “Yellow” $(15)$320 per Meter$335 per MeterPotential of Risk “Red” Commercial Customer Deposit $(55)$880 per Meter$935 per Meter1 ½ Inch Meter & Below $(120)$1,560 per Meter$1,680 per Meter2 Inch Meter $1,000$3,450 per Meter$2,450 per Meter3 Inch Meter $215$3,490 per Meter$3,275 per Meter4 Inch and Larger Meter Page 31 of 43 New Meter Connection Fees 3/28/2024 Board of Directors Workshop 5 Fee Increase or (Decrease)FY24-25 Fee Per Meter FY23-24 Fee per Meter Meter Size (Inches) $40$910$8701 $50$1,460$1,4101½ $60$1,860$1,8002 TBDIncurred Costs Incurred Costs> 2 Construction Meter Connection Fees Fee Increase or (Decrease)FY24-25 FeesFY23-24 FeesActivity $0 per Meter$3,360 per Meter$3,360 per MeterDeposit $(20) per Occurrence$20 per Occurrence$40 per OccurrenceNew Account Setup $0.02 per Day$9.21 per Day$9.19 per DayMeter Use $5 per Occurrence$145 per Occurrence$140 per OccurrenceMove to a New Location $0.64 per Unit $7.54 per Unit (Pending calculated pass-through) $6.90 per Unit Temporary Water Service – 2X Commodity Rate in effect Page 32 of 43 Tampering Penalties 3/28/2024 Board of Directors Workshop 6 Cost Increase or (Decrease)FY24-25 PenaltyFY23-24 PenaltyViolation Meter Tampering Penalties $0 $ 1,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 1,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage 1st $0 $ 2,500 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 2,500 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage 2nd $0 $ 5,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 5,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage 3rd Hydrant Tampering Penalties $0 $ 1,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 1,000 + Incurred Costs of Inspection, Repair, and Estimated Usage 1st $0 $ 2,500 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 2,500 + Incurred Costs of Inspection, Repair, and Estimated Usage 2nd $0 $ 5,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 5,000 + Incurred Costs of Inspection, Repair, and Estimated Usage 3rd Page 33 of 43 Miscellaneous Water Service Fees 3/28/2024 Board of Directors Workshop 7 Fee Increase or (Decrease)FY24-25 FeesFY23-24 FeesFee Type TBDIncurred CostIncurred Cost Change of Meter Size Fee $.35 per month$4.07 per month$3.72 per month Backflow Device Monitoring Fee $150$2,110$1,960Single Service Fee Page 34 of 43 Water Service Capacity Fees (Adequate Water Main Fronts Property) 3/28/2024 Board of Directors Workshop 8 Fee Increase or (Decrease) FY24-25 Fee per Meter FY23-24 Fee per Meter Meter Size (Inches) $0$12,311$12,3111 $0$24,622$24,6221-1/2 $0$39,395$39,3952 $0$86,177$86,1773 $0$155,119$155,1194 $0$320,087$320,0876 Note: Capacity fees are subject to change upon additional analysis. Page 35 of 43 Water Service Capacity Fees (Developer to Construct Water Main in Front of Property) 3/28/2024 Board of Directors Workshop 9 Fee Increase or (Decrease) FY24-25 Fee per Meter FY23-24 Fee per Meter Meter Size (Inches) $0$8,840$8,8401 $0$17,679$17,6791-1/2 $0$28,287$28,2872 $0$61,878$61,8783 $0$111,380$111,3804 $0$229,832$229,8326 Note: Capacity fees are subject to change upon additional analysis. Page 36 of 43 Water Service Initial Deposit Fees For More Complex Developments 3/28/2024 Board of Directors Workshop 10 Developer Deposits allow for reimbursement to District for costs pertaining to: Plan check, Inspection, GIS, Administrative, Legal Review and other project costs. Additional deposits will be assessed if required to reimburse District for all project related costs. Unused deposit funds will be refunded to the Developer upon close out of project. Deposit Increase or (Decrease) FY24-25 Deposit FY23-24 Deposit Number of Service Connections $330$15,240$14,9105 or less $0$19,870$19,8706-10 $0$24,790$24,79011-20 $850$33,280$32,43021-30 $2,000$41,800$39,80031-40 $2,880$47,550$44,67041-50 $3,200$54,070$50,87051-99 $4,150$71,440$67,290100 and higher Page 37 of 43 Sewer Customer And Developer Fees 3/28/2024 11Page 38 of 43 Sewer Single Service Fee 3/28/2024 Board of Directors Workshop 12 Cost Increase or (Decrease)FY24-25FY23-24Fee $140$1,890$1,750Single Service Fee $70$250 per year$180 per yearFOG Fee $85$440 per Occurrence $355 per Occurrence FOG Non- Compliance Fee TBDActual CostActual CostFOG Mitigation Fee Page 39 of 43 3/28/2024 Board of Directors Workshop 13 Cost Increase or (Decrease)FY24-25 PenaltyFY22-23 PenaltyViolation Sewer Tampering Penalties $0 $ 1000 + Actual Costs of Inspection, Repair and Estimated Usage $ 1000 + Actual Costs of Inspection, Repair and Estimated Usage 1st $0 $ 2500 + Actual Costs of Inspection, Repair and Estimated Usage $ 2500 + Actual Costs of Inspection, Repair and Estimated Usage 2nd $0 $ 5000 + Actual Costs of Inspection, Repair and Estimated Usage $ 5000 + Actual Costs of Inspection, Repair and Estimated Usage 3rd Illegal Sewer System Connection Penalties $0$ 5000 + Actual Costs of Inspection, Repair and Estimated Usage $ 5000 + Actual Costs of Inspection, Repair and Estimated Usage 1st $0$ 10,000 + Actual Costs of Inspection, Repair and Estimated Usage $ 10,000 + Actual Costs of Inspection, Repair and Estimated Usage 2nd $0$ 15000 + Actual Costs of Inspection, Repair and Estimated Usage $ 15000 + Actual Costs of Inspection, Repair and Estimated Usage 3rd Sewer Tampering Penalties Page 40 of 43 Frontage Charge Adequate Sewer Main Fronts Property and Not Subject to Developer Reimbursement Program 3/28/2024 Board of Directors Workshop 14 Fee Increase or (Decrease) FY24-25 Frontage Charge FY23-24 Frontage ChargeProperty Class $0$5,763$5,763Single Family Residence $0Sewer Frontage (FT)/75FT x $5,763 Sewer Frontage (FT)/75FT x $5,763 Master Metered $0Sewer Frontage (FT)/75FT x $5,763 Sewer Frontage (FT)/75FT x $5,763 Commercial Note: Frontage Charges are subject to change upon additional analysis. Page 41 of 43 Sewer Service Initial Deposit Fees For More Complex Developments 3/28/2024 Board of Directors Workshop 15 Developer Deposits allow for reimbursement to District for costs pertaining to: Plan check, Inspection, GIS, Administrative, Legal Review and other project costs. Additional deposits will be assessed if required to reimburse District for all project related costs. Unused deposit funds will be refunded to the Developer upon close out of project. Deposit Increase or (Decrease) FY24-25 Deposit FY23-24 Deposit Number of Connections $550$10,700$10,1505 or less $370$13,250$12,8806-10 $1,200$21,490$20,29011-20 $1,500$25,410$23,91021-30 $1,910$30,650$28,74031-40 $2,280$35,690$33,41041-50 $2,810$42,230$39,42051-99 $4,110$54,550$50,440100 and higher Page 42 of 43 Sewer Service Capacity Fees Developer to Construct Sewer Main in Front of Property – Requires Developer Deposit 3/28/2024 Board of Directors Workshop 16 Fee Increase or (Decrease) FY24-25 Capacity Fee Per Connection FY23-24 Capacity Fee Per Connection Property Class (Various Examples) $0$794$794Single Family Residence $0$0.82 x Number of Units x $794 $0.82 x Number of Units x $794 Master Metered $0 Equivalent Dwelling Unit x Total SF/1,000SF x $794 Equivalent Dwelling Unit x Total SF/1,000SF x $794 Commercial Note: Capacity fees are subject to change upon additional analysis. Page 43 of 43