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Home My WebLink About2025-03-27 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, March 27, 2025, 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/82024059298 Telephone: (669) 444-9171 or (669) 900-6833 Meeting ID: 820 2405 9298 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL 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 2025-26 Budget Workshop #2 8.2. Fiscal Year 2025-26 Proposed Water & Sewer Customer and Developer Fees 9. 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. 9.1. 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: Mike Bubalo Construction Co., Inc./Pascal & Ludwig Constructors, Inc. v. Yorba Linda Water District (OCSC - Case No. 30-2025- 01461247-CU-BC-CJC) Page 1 of 55 9.2. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Mark Toy, General Manager, and Lori Thompson, Human Resources and Risk Manager Employee Organization: Yorba Linda Water District Employees Association 9.3. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Mark Toy, General Manager, and Lori Thompson, Human Resources and Risk Manager Unrepresented Employees: All Unrepresented Classifications 10. REPORT FROM CLOSED SESSION 11. ADJOURNMENT 11.1. The next regular Board meeting is scheduled Thursday, April 10, 2025 at 8:30 AM. 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 55 ITEM NO. 8.1. AGENDA REPORT MEETING DATE: March 27, 2025 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Christine McIlrevey, Finance Manager SUBJECT: Fiscal Year 2025-26 Budget Workshop #2 Staff will present and discuss the proposed Fiscal Year 2025-26 budgets for Revenue, Production & Variable Costs, and Supplies & Services. ATTACHMENTS: 1. Slide Deck - FY25-26 Budget Workshop 2 Page 3 of 55 FY2025-26 Budget Workshop 2 March 27, 2025 3/27/2025 1Page 4 of 55 Overview •Summary of FY2025-26 Budget Operating Revenue •Summary of Proposed Rates •Revenue Operating Expenses •Production •Variable Costs •Supplies & Services 3/27/2025 2Page 5 of 55 Summary of FY2025-26 Budget 3/27/2025 3Page 6 of 55 Financial Summary - Consolidated Revenue Prior Year FY2023-24 Projections FY2024-25 Budget FY2025-26 Revenue (Operating) $ 48,331,727 $ 56,172,319 $ 60,601,786 Revenue (Non-Operating) Total Revenue Rate Study Assumptions Variance % 3/27/2025 Expenses Expenses (Operating): Variable Costs $ 16,900,164 $ 21,002,102 $ 21,321,363 Salary Related Expenses (Less Capitalized Labor) Supplies & Services 8,769,143 9,722,737 10,796,582 Expenses (Non-Operating) Total Expenses Rate Study Assumptions Variance % Net Position Before Capital Contributions & Depreciation Capital Contributions Depreciation Total Change to Net Position 4Page 7 of 55 Summary of Proposed Rates 3/27/2025 5Page 8 of 55 FY2025-26 Proposed Rates 3/27/2025 6 Meter Size Monthly Service Charge 5/8 $ 39.05 3/4 $ 39.05 1 $ 60.61 1 1/2 $ 115.49 2 $ 180.99 3 $ 388.47 4 $ 694.19 6 $ 1,753.35 Meter Size Annual Capital Finance Charge 5/8 $ 96.36 3/4 $ 96.36 1 $ 160.56 1 1/2 $ 320.64 2 $ 512.52 3 $ 1,120.68 4 $ 2,016.48 6 $ 5,121.00 Commodity Rate $ 3.74 Water Rates 9% Sewer Rates 9.3% Meter Size Monthly Private Fire Protection Charge 4 $ 11.11 6 $ 29.06 8 $ 60.06 10 $ 106.69 Meter Type Monthly Service Charge Residential – SFR $ 15.05 Residential Master Metered – MFR $ 14.48 Commercial $ 15.05 Tier Usage Rates Tier 1 (0-7 ccfs per month)$ 0.00 Tier 2 (8+ ccfs per month)$ 0.61 Commodity Rate Plus Pass- Through $ 4.11 Pass-Through $ 0.37 Page 9 of 55 3/27/2025 7 Billing FY2024-25 w/ 9% Wtr & 15% Swr Adj With Pass-Through $0.34 FY2025-26 w/ 9% Wtr & 9.3% Swr Adj With Pass-Through $0.37 Monthly Water Related Charges $119.97 $130.48 Monthly Sewer Related Charges $13.77 $15.05 Capital Finance Charge (CFC)$12.27 $13.38 Avg Monthly Bill w/ CFC (17 units)$146.01 $158.91 Percentage increase of 8.8% Cost increase of $12.90 Effect on Customer Bill Current Assumptions Page 10 of 55 Revenue 3/27/2025 8Page 11 of 55 Retail Water Consumption 3/27/2025 9 FY2025-26 Budget Calculation Retail water consumption is calculated from historic trends and production demand. “PT” is Pass-Through. Prior Year FY2023-24 Projected FYE2024-25 Budget FY2025-26 Consumption (CCF) 6,443,548 7,605,355 7,362,786 Consumption in Acre-Feet 14,792 AF 17,459 AF 16,903 AF Revenue ($) $ 20,363,484 $ 28,447,649 $ 30,012,591 Consumption Unit Price $ 3.14 + PT $ 0.31 = $ 3.45 $ 3.43 + PT $ 0.34= $ 3.77 $ 3.74 + PT $ 0.37 = $ 4.11 AF: Acre-Feet CCF: Centum cubic feet (100 cubic feet) CC F Prior Year FY2023-24 Projected FY2024-25 Budget FY2025-26 $5.5M $6.0M $6.5M $7.0M $7.5M $8.0M 14,792 AF 6,443,548CCF 17,459 AF 7,605,355CCF 16,903 AF 7,362,786CCF 16,943 AF 7,380,219CCF 16,943 AF 7,380,219CCF 16,943 AF 7,380,219CCF Retail Consumption Consumption (CCF)2021 Rate Study Assumptions Page 12 of 55 Revenue Analysis 3/27/2025 10 17,332,568 1,884,552 3,622,962 15,999,358 3,526,631 3,585,075 417,051 1,950,873 21,421,085 2,105,117 4,921,445 17,546,715 3,890,245 4,252,641 468,797 1,566,272 22,584,477 2,376,634 5,195,174 19,164,365 4,260,742 4,672,028 512,395 1,835,971 FY24 Prior Year FY25 YE Projections FY26 Budget Water Revenue (Res.) Water Revenue (Comm & Fire) Water Revenue (Irrigation)Service Charges Property Tax - CFC Sewer Charge Revenue Sewer Parcel Assmnt Other Operating Revenue $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 Page 13 of 55 Production 3/27/2025 11Page 14 of 55 Production Demand 3/27/2025 12 Prior Year FY 2023-24 Projected FY 2024-25 Budget FY 2025-26 Production Demand 16,900 19,474 18,709 2021 Rate Study Assumption 18,416 18,416 18,416 Total Production Demand Ac r e - F e e t Prior Year FY 2023-24 Projected FY 2024-25 Budget FY 2025-26 22,000.0 20,000.0 18,000.0 16,000.0 14,000.0 12,000.0 10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 0.0 14,765.6 16,553.0 15,612.8 2,134.7 2,920.6 3,095.7 18,416.0 18,416.0 18,416.0 Ground Water Import Water 2021 Rate Study Assumptions Page 15 of 55 Production Demand (Rate Study Comparison) 3/27/2025 13 Prior Year FY 2023-24 Projected FY 2024-25 Budget FY 2025-26 Ground Water 14,765.6 16,553.0 15,970.5 Import Water 2,134.7 2,920.6 2,738.0 Total 16,900.3 19,473.6 18,708.5 Historic & Future Demand 2021 Rate Study Assumptions Ground Water %87%85%85% Import Water %13%15%15% FY 2023-24 FY 2024-25 FY 2025-26 Ground Water 13,812.0 13,812.0 13,812.0 Import Water 4,604.0 4,604.0 4,604.0 Total 18,416.0 18,416.0 18,416.0 Ground Water %75%75%75% Import Water %25%25%25% Page 16 of 55 Variable Costs 3/27/2025 14Page 17 of 55 Variable Costs Detail (Rate Study Comparison) 3/27/2025 15 2021 Rate Study Assumptions Prior Year FY 2023-24 Projections FY 2024-25 Budget FY 2025-26 Groundwater Purchases $ 9,187,162 $ 11,388,464 $ 11,355,025 OCWD Annexation Fee 717,261 722,639 764,977 Power Costs 3,003,259 3,471,297 3,542,430 Import Water Purchases 2,502,822 3,754,750 3,830,536 MWDOC Fixed Costs 1,489,661 1,664,952 1,828,395 $ 16,900,164 $ 21,002,102 $ 21,321,363 Historic & Future Variable Costs FY 2023-24 FY 2024-25 FY 2025-26 Groundwater Purchases $ 7,138,127 $ 7,280,890 $ 7,426,508 OCWD Annexation Fee 553,395 564,462 575,752 Power Costs 1,414,839 1,485,581 1,559,860 Import Water Purchases 5,719,737 6,005,724 6,306,010 MWDOC Fixed Costs 882,718 909,200 936,476 $ 15,708,816 $ 16,245,857 $ 16,804,606 Rate Study Assumptions $ 1,191,348 $ 4,756,245 $ 4,516,757 Variance %7.6%29.3%27% Variance from Assumptions Page 18 of 55 Variable Costs - Budget Calculation 3/27/2025 16 FY2025-26 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. Variable Cost Prior Year FY 2023-24 Projected FY 2024-25 Budget FY 2025-26 OCWD Replenishment Assessment (ground water)$624/AF $688/AF $711/AF Variance %15%10%3% Metropolitan Treated Water Rate (imported water)$1,209/$1,256/AF $1,256/$1,395/AF $1,395/$1,528/AF Variance %4%11%9.5% OCWD Annexation $717,261 $722,639 $764,977 Variance %4%1%6% MWDOC Fixed Costs – Connection Fee $343,724 $376,080 $389,531 Variance %11%9%4% MWDOC Fixed Costs – Capacity Fee $326,830 $359,616 $430,212 Variance %1%10%19% MWDOC Fixed Costs – Readiness to Serve Fee $819,106 $929,256 $1,008,651 Variance %57%13%9% Power $3,003,259 $3,471,297 $3,542,430 Variance %1%15%2% Historic & Future Variable Costs The variance % is the increase/decrease from the previous year. Page 19 of 55 Variable Costs - Budget Calculation (continued) 3/27/2025 17 Variable Cost % Increase Per Year FY 2023-24 FY 2024-25 FY 2025-26 OCWD Replenishment Assessment (ground water)2%$517/AF $527/AF $538/AF Metropolitan Treated Water Rate (imported water)5%$1,217/$1,278/AF $1,278/$1,342/AF $1,342/$1,409/AF OCWD Annexation 2%$553,395 $564,462 $575,752 MWDOC Fixed Costs – Connection Fee 3%$337,281 $347,400 $357,822 MWDOC Fixed Costs – Capacity Fee 3%$233,600 $240,608 $247,826 MWDOC Fixed Costs – Readiness to Serve Fee 3%$311,837 $321,192 $330,828 Power 5%$1,414,839 $1,485,581 $1,559,860 2021 Rate Study Assumptions Variable Cost FY 2023-24 FY 2024-25 FY 2025-26 OCWD Replenishment Assessment (ground water)21%31%32% Metropolitan Treated Water Rate (imported water)-2%4%8% OCWD Annexation 30%28%33% MWDOC Fixed Costs – Connection Fee 2%8%9% MWDOC Fixed Costs – Capacity Fee 40%50%74% MWDOC Fixed Costs – Readiness to Serve Fee 163%189%205% Power 112%134%127% The variance % is the increase/decrease from actuals to rate study. Page 20 of 55 Supplies & Services 3/27/2025 18Page 21 of 55 Prior Year FY2023-24 Projected FYE2024-25 Budget FY2025-26 $.0M $2.0M $4.0M $6.0M $8.0M $10.0M $12.0M Total: $8,769,143 Total: $9,722,737 Total: $10,796,582 $ 7,082,671 $ 7,231,018 $ 7,382,668 Supplies & Services Combined 2021 Rate Study Assumptions Supplies & Services (Rate Study Comparison) 2021 Rate Study AssumptionsHistoric & Future 3/27/2025 19 Supplies & Services Prior Year FY2023-24 Projected FYE2024-25 Budget FY2025-26 Combined $ 8,769,143 $ 9,722,737 $ 10,796,582 Supplies & Services FY2023-24 FY2024-25 FY2025-26 Combined $ 7,082,671 $ 7,231,018 $ 7,382,668 Variance from Assumptions Rate Study Variance $ $ 1,686,472 $ 2,491,719 $ 3,413,914 Rate Study Variance %24%34%46% Page 22 of 55 Supplies & Services Analysis (group 1) 3/27/2025 20 Variances Explanations for Impactful Expenses – 2025 Projections to 2026 Budget Contractual Services – The decrease of 2% is primarily due to a reduction in class & compensation study costs as most of the work for the study is anticipated to be completed in FY 2024-25. Data Processing – The increase of 15% is primarily due to a new hydraulic modeling software ($50,000) and other allocations of purchased software from consultants. Dues & Memberships – The increase of 9% from FY25 Projections is due to increased current membership fees and one new membership of $5,000. 0 187,568 629,988 273,426 40,292 94,857 0 283,440 837,879 495,796 72,795 123,637 0 282,765 823,850 572,217 69,345 134,415 99,919 268,319 589,418 361,758 51,970 111,231 2024 Actuals 2025 Projection 2026 Budget 2021 Rate Study Board Election Communications Contractual Services Data Processing District Meetings & Events Dues & Memberships $ - $ 500,000 $ 1,000,000 $ 1,500,000 $ 2,000,000 $ 2,500,000 $ 3,000,000 $99,919 $268,319 $589,418 $361,758 $51,970 $111,231 FY24 Actuals, FY25 Projections, FY26 Budget Page 23 of 55 Supplies & Services Analysis (group 2) 3/27/2025 21 Variances Explanations for Impactful Expenses – 2025 Projections to 2026 Budget Insurance – The increase of 27% is due to higher cost of liability and property insurance. Maintenance – The increase of 13% is primarily due to the City of Yorba Linda paving project which was reduced in FY 2024-25 and more of the work is anticipated to be completed in FY 2025-26. Materials – The increase of 49% is primarily due to resin changeouts of the PFAS treatment plant vessels. There are 10 vessels that are anticipated to be changed in FY 2025-26 and the contracted cost increased 22% from FY 2023 pricing. Non Capital Equipment – The decrease of 20% is due to the laptop/desktop replacement program, with not as many to purchase in FY 2026. 458,258 467,891 2,065,341 1,810,900 272,310 43,495 489,927 587,445 1,789,780 1,665,250 301,254 41,258 526,750 746,600 2,016,800 2,473,950 239,800 45,705 562,198 373,236 783,456 2,066,010 206,100 41,486 2024 Actuals 2025 Projection 2026 Budget 2021 Rate Study Fees & Permits Insurance Maintenance Materials Non Capital Equipment Office Expense $ - $ 500,000 $ 1,000,000 $ 1,500,000 $ 2,000,000 $ 2,500,000 $ 3,000,000 $562,198 $373,236 $783,456 $2,066,010 $206,100 $41,486 FY24 Actuals, FY25 Projections, FY26 Budget Page 24 of 55 Variances Explanations for Impactful Expenses – 2025 Projections to 2026 Budget Professional Services – The decrease of 15% is due to consulting services that were budgeted in FY 2025 and will not carry over into FY 2026. Professional services that will not carry over into FY 2026 include the Well Siting Study, Santiago Reservoir stability study, the Fairmont Reservoir structural evaluation, Highland Access Road and Green Crest Drive. Travel & Conferences – The increase of 84% is due to travel and conferences that were budgeted but not attended in prior year due to various factors, such as scheduling conflicts and other work priorities, including work to complete bond projects. It is anticipated that these conferences will be attended in FY 2026. Supplies & Services Analysis (group 3) 3/27/2025 22 42,072 1,396,426 68,463 12,390 225,940 679,526 68,995 1,820,960 73,899 22,071 229,600 818,752 80,750 1,543,070 136,270 17,735 235,600 850,960 69,761 1,068,876 53,217 10,820 246,005 418,888 2024 Actuals 2025 Projection 2026 Budget 2021 Rate Study Professional Development Professional Services Travel & Conferences Uncollectible Accounts Utilities Vehicle Expenses $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $69,761 $1,068,876 $53,217 $10,820 $246,005 $418,888 FY24 Actuals, FY25 Projections, FY26 Budget Page 25 of 55 Anticipated Items Budget Workshop #3 •Meeting Date: April 24th Topics •Salary Related Expenses •Including OPEB and Pension •Non-Operating •Debt Service •5-Year CIP (update) and Capital Outlay •Other Key Updates 3/27/2025 23Page 26 of 55 ITEM NO. 8.2. AGENDA REPORT MEETING DATE: March 27, 2025 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Christine McIlrevey, Finance Manager Sophia Phuong, Accounting Supervisor Rosanne Weston, Engineering Manager SUBJECT: Fiscal Year 2025-26 Proposed Water & Sewer Customer and Developer Fees Staff will present and discuss the proposed Fiscal Year 2025-26 Water & Sewer Customer and Developer Fees, which include updates to the capacity fees and frontage charges. ATTACHMENTS: 1. Slide Deck - FY25-26 Proposed Water & Sewer Development Fees 2. Water Resources Economics Memorandum - Update of Capacity Fees and Frontage Charges Page 27 of 55 PROPOSED CUSTOMER AND DEVELOPER FEES Fiscal Year 2025-26 3/27/2025 Board of Directors Workshop 1Page 28 of 55 Water Customer And Developer Fees 3/27/2025 2Board of Directors Workshop Page 29 of 55 Customer Service Fees 3/27/2025 Board of Directors Workshop 3 Types of Service Fees FY24-25 Fee per Occurrence FY25-26 Fee per Occurrence Fee Increase or (Decrease) Fee Change % New Account Set up Fee $50 $50 $0 - Notice of Discontinuance $15 $15 $0 - Shut-Off Due to Non-Payment $50 $50 $0 - Establish Service $50 $50 $0 - Callout After Hours $230 $230 $0 - Tampered Lock - Residential $95 $95 $0 - Tampered Lock - Commercial $150 $100 $(50)(33)% Meter Removal $140 $80 $(60)(43)% Meter Replacement $140(Plus addt’l labor and materials due to customer tampering) $135(Plus addt’l labor and materials due to customer tampering) $(5)(4)% Return Payment Fee $40 $40 $0 - Stop Payment Of District Check $25 $25 $0 - Page 30 of 55 Customer Service Fees (Continued) 3/27/2025 Board of Directors Workshop 4 Types of Service Fees FY24-25 Fee FY25-26 Fee Fee Increase or (Decrease) Fee Change % Water Meter Testing Fee $145 (Plus cost of independent laboratory testing if applicable) $150 (Plus cost of independent laboratory testing if applicable) $5 3% Residential Customer Deposit Potential of Risk “Green”$0 per Meter $0 per Meter $0 - Potential of Risk “Yellow”$180 per Meter $200 per Meter $20 11% Potential of Risk “Red”$320 per Meter $350 per Meter $30 9% Commercial Customer Deposit 1 ½ Inch Meter & Below $880 per Meter $940 per Meter $60 7% 2 Inch Meter $1,560 per Meter $1,700 per Meter $140 9% 3 Inch Meter $3,450 per Meter $4,000 per Meter $550 16% 4 Inch and Larger Meter $3,490 per Meter $3,850 per Meter $360 10% Page 31 of 55 New Meter Connection Fees 3/27/2025 Board of Directors Workshop 5 Meter Size (Inches) FY24-25 Fee per Meter FY25-26 Fee Per Meter Fee Increase or (Decrease) Fee Change % 1 $910 $900 $(10)(1)% 1 ½$1,460 $1,480 $20 1% 2 $1,860 $1,900 $40 2% > 2 Incurred Costs Incurred Costs TBD Construction Meter Connection Fees Activity FY24-25 Fees FY25-26 Fees Fee Increase or (Decrease) Fee Change % Deposit $3,360 per Meter $3,160 per Meter $(200) per Meter (6)% New Account Setup $20 per Occurrence $30 per Occurrence $10 per Occurrence 50% Meter Use $9.21 per Day $8.66 per Day $(0.55) per Day (6)% Move to a New Location $145 per Occurrence $145 per Occurrence $0 per Occurrence - Temporary Water Service – 2X Commodity Rate in effect $7.54 per Unit (Pending calculated pass-through) $8.22 per Unit (Pending calculated pass-through) $0.68 per Unit 9% Page 32 of 55 Miscellaneous Water Service Fees 3/27/2025 Board of Directors Workshop 6 Fee Type FY24-25 Fees FY25-26 Fees Fee Increase or (Decrease) Fee Change % Change of Meter Size Fee Incurred Cost Incurred Cost TBD TBD Backflow Device Monitoring Fee $4.07 per month $4.15 per month $.08 per month 2% Single Service Fee $2,110 $2,450 $340 16% Page 33 of 55 Tampering Penalties 3/27/2025 Board of Directors Workshop 7 Violation FY24-25 Penalty FY25-26 Penalty Cost Increase or (Decrease) Cost Change % Meter Tampering Penalties 1st $ 1,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 1,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $0 - 2nd $ 2,500 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 2,500 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $0 - 3rd $ 5,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 5,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $0 - Hydrant Tampering Penalties 1st $ 1,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 1,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $0 - 2nd $ 2,500 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 2,500 + Incurred Costs of Inspection, Repair, and Estimated Usage $0 - 3rd $ 5,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 5,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $0 - Page 34 of 55 Water Service Initial Deposit Fees For More Complex Developments 3/27/2025 Board of Directors Workshop 8 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. Number of Service Connections FY24-25 Deposit FY25-26 Deposit Deposit Increase or (Decrease) Fee Change % 5 or less $15,240 $15,900 $660 4% 6-10 $19,870 $19,870 $0 - 11-20 $24,790 $24,790 $0 - 21-30 $33,280 $34,210 $930 3% 31-40 $41,800 $41,920 $120 - 41-50 $47,550 $50,120 $2,570 5% 51-99 $54,070 $55,400 $1,330 2% 100 and higher $71,440 $72,810 $1,370 2% Page 35 of 55 Water Service Capacity Fees Adequate Water Mains Serve Property* 3/27/2025 Board of Directors Workshop 9 Meter Size (Inches) FY24-25 Fee per Meter FY25-26 Fee per Meter Fee Increase Fee Change % 1 $13,900 $14,113 $213 2% 1-1/2 $27,801 $28,226 $425 2% 2 $44,481 $45,161 $680 2% 3 $97,302 $98,790 $1,488 2% 4 $175,144 $177,822 $2,678 2% 6 $361,409 $366,935 $5,526 2% Additional Capacity fees may apply to larger developments that will utilize more facility capacity. * Existing and adequate waterline fronting the property. Page 36 of 55 Water Service Capacity Fees Developer to Construct Water Mains to Serve Property* 3/27/2025 Board of Directors Workshop 10 Meter Size (Inches) FY24-25 Fee per Meter FY25-26 Fee per Meter Fee Increase Fee Change % 1 $10,045 $10,488 $443 4% 1-1/2 $20,091 $20,976 $885 4% 2 $32,146 $33,562 $1,416 4% 3 $70,318 $73,416 $3,098 4% 4 $126,573 $132,149 $5,576 4% 6 $261,182 $272,689 $11,507 4% Additional Capacity fees may apply to larger developments that will utilize more facility capacity. * No or inadequate waterline fronting the property. To be installed or replaced at developer’s expense. Page 37 of 55 Sewer Customer And Developer Fees 3/27/2025 11Board of Directors Workshop Page 38 of 55 Sewer Single Service Fee 3/27/2025 Board of Directors Workshop 12 Fee FY24-25 FY25-26 Fee Increase or (Decrease) Fee Change % Single Service Fee $1,890 $2,120 $230 12% FOG Fee $250 per year $270 per year $20 8% FOG Non- Compliance Fee $440 per Occurrence $340 per Occurrence $(100)(23)% FOG Mitigation Fee Actual Cost Actual Cost TBD TBD Page 39 of 55 3/27/2025 Board of Directors Workshop 13 Violation FY24-25 Penalty FY25-26 Penalty Cost Increase or (Decrease) Cost Change % Sewer Tampering Penalties 1st $ 1000 + Actual Costs of Inspection, Repair and Estimated Usage $ 1000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - 2nd $ 2500 + Actual Costs of Inspection, Repair and Estimated Usage $ 2500 + Actual Costs of Inspection, Repair and Estimated Usage $0 - 3rd $ 5000 + Actual Costs of Inspection, Repair and Estimated Usage $ 5000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - Illegal Sewer System Connection Penalties 1st $ 5000 + Actual Costs of Inspection, Repair and Estimated Usage $ 5000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - 2nd $ 10,000 + Actual Costs of Inspection, Repair and Estimated Usage $ 10,000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - 3rd $ 15000 + Actual Costs of Inspection, Repair and Estimated Usage $ 15000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - Sewer Tampering Penalties Page 40 of 55 Sewer Service Initial Deposit Fees For More Complex Developments 3/27/2025 Board of Directors Workshop 14 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. Number of Connections FY24-25 Deposit FY25-26 Deposit Deposit Increase or (Decrease) Deposit Change % 5 or less $10,700 $11,250 $550 5% 6-10 $13,250 $14,330 $1,080 8% 11-20 $21,490 $22,680 $1,190 6% 21-30 $25,410 $27,860 $2,450 10% 31-40 $30,650 $32,380 $1,730 6% 41-50 $35,690 $37,070 $1,380 4% 51-99 $42,230 $43,950 $1,720 4% 100 and higher $54,550 $55,040 $490 1% Page 41 of 55 Sewer Service Capacity Fees 3/27/2025 Board of Directors Workshop 15 Property Class (Various Examples) FY24-25 Capacity Fee Per Connection FY25-26 Capacity Fee Per Connection Fee Increase or (Decrease) Fee Change % Single Family Residence $865 $1,096 $231 26.7% Master Metered 0.82 x Number of Units x $865 0.82 x Number of Units x $1,096 TBD 26.7% Commercial Equivalent Dwelling Unit x Total SF/1,000SF x $865 Equivalent Dwelling Unit x Total SF/1,000SF x $1,096 TBD 26.7% Equivalent Dwelling Unit is based on one Single Family Residence. Page 42 of 55 Frontage Charge Adequate Sewer Mains Serve Property and Property is Not Subject to Developer Reimbursement Program 3/27/2025 Board of Directors Workshop 16 Property Class FY24-25 Frontage Charge FY25-26 Frontage Charge Fee Increase or (Decrease) Fee Change % Single Family Residence $6,305 $6,959 $654 10.4% Master Metered Sewer Frontage (FT)/75FT x $6,305 Sewer Frontage (FT)/75FT x $6,959 TBD 10.4% Commercial Sewer Frontage (FT)/75FT x $6,305 Sewer Frontage (FT)/75FT x $6,959 TBD 10.4% 75 Feet is average frontage of a Single Family Residence. Page 43 of 55 Page 1 Memo To: Rosanne Weston, Engineering Manager – Yorba Linda Water District From: Sanjay Gaur, Founder/President – Water Resources Economics, LLC Date: March 19, 2025 Re: Water and Wastewater Capacity Fees and Wastewater Frontage Charge Update INTRODUCTION Water Resources Economics, LLC (WRE) was engaged by the Yorba Linda Water District (District) in 2024 to update existing water and wastewater capacity fees and wastewater frontage charges. The current water and wastewater capacity fees and wastewater frontage charges were established as part of the Water & Wastewater Development Capacity Fee Study Report prepared by Raftelis on May 22, 2023. Capacity and frontage charges were updated based on Raftelis’ report on April 5, 2024. This update follows the same methodology as the 2023 report and 2024 update, apart from the sewer lateral methodology. In the 2023 report and 2024 update private sewer laterals were netted out of the total wastewater system value. For this update District staff confirmed that sewer laterals are not included in the District’s Asset Management Program (AMP) and therefore were not netted out of the wastewater system value. DISCLAIMER All table values are rounded to the nearest digit shown unless stated otherwise. However, all calculations are based on precise values. Attempting to manually recreate the calculations described in this memo from the values displayed in the tables may therefore produce slightly different results. PROPOSED CAPACITY FEES The Equity Buy-In Method was previously selected to calculate capacity fees and is still applicable today as the existing water and sewer systems can accommodate further growth for new service connections. Existing customers have financed the costs for the existing systems, so new customers will be required to pay their fair share of the net equity of the systems. The first step of the Equity Buy-In Method is to calculate the value of the water and wastewater system based on the system’s existing capital assets. The outstanding debt principal was deducted from the value of the water system assets. Currently the District does not have outstanding debt for the wastewater system. Once the value of the system was calculated, the total system value was divided by the existing demand of the system, measured in equivalent dwelling units (EDUs). The value of the Page 44 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 2 system per EDU is allocated across different meter sizes or customer classes to arrive at the proposed water and wastewater capacity fees. Wastewater capacity fees were adjusted to exclude the asset value of sewer mains (frontage sewers) that have pipe diameters 8-inch and smaller to account for customers that do not have existing sewer mains fronting development. These customers will need to upsize an existing sewer or construct a new sewer in front of their property to connect to the District’s sewer system and therefore do not benefit from having an existing sewer main fronting their properties. VALUE OF THE SYSTEM Based on discussions with staff and consistent with the methodology used in the 2023 report and 2024 update, WRE used the Replacement Cost Less Depreciation (RCLD) method of valuing existing capital assets. The District provided their Asset Management Program (AMP) that was most recently updated at the end of 2024, which WRE used to calculate the RCLD values of the water and wastewater systems. To maintain consistency with the past update, some wastewater and water assets are excluded from the system values, including sewer manholes, sewer force mains, water meters, and pipelines installed before 2022 excluded from the past report and update. Private sewer laterals are not included in the AMP. Replacement costs were estimated by escalating the current AMP replacement costs to current day replacement costs in 2024 using the Engineering News-Record’s (ENR) 20-City Construction Cost Index (CCI). This index tracks construction costs over 20 major US cities to account for inflation of project costs over time. The replacement costs of all assets in the AMP installed before or in 2018 (the year AMP was created) have already been inflated relative to 2018. These assets are inflated consistently by 122.7% to arrive at their 2024 replacement costs based on the 2018 CCI. For assets installed after 2018, the AMP replacement cost represents the actual project cost from the year the asset was installed. These assets are inflated relative to the year they were installed and the adjustment for each year to bring the replacement costs to 2024 equivalent value. The depreciation cost of each asset is based on the 2024 replacement value and was calculated using a straight-line method of depreciation. The total depreciation over each asset’s life up to 2024 was subtracted from the replacement cost of each asset to determine the RCLD values. Assets that have remained in use past their useful life are considered fully depreciated with no RCLD value. Table 1 and Table 2 below show total 2024 replacement costs, accumulated depreciation, and replacement cost less depreciation (RCLD) by each facility type defined in the AMP for the water and wastewater systems. Water and wastewater pipes are split into those 8-inch in diameter and smaller and those greater than 8-inch in diameter. Base assets refer to Richfield Headquarters base assets as well as vehicles and equipment such as trailers, forklifts, trucks, etc. Page 45 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 3 Table 1: Water System Assets Value Line Facility Replacement Project Cost 2024 Accumulated Depreciation 2024 RCLD 2024 1 Pipes 8” and Smaller $271,985,592 $167,488,848 $105,602,977 2 Pipes Greater than 8” $251,559,285 $126,123,918 $126,149,058 3 Well Drain Line $47,986 $1,280 $46,706 4 BPS $34,571,845 $21,350,574 $15,594,987 5 Interconnection $137,161 $167,758 $27,854 6 PRS $15,937,494 $10,473,266 $6,253,367 7 Reservoir $232,016,108 $70,344,134 $162,261,298 8 Source $245,368 $223,285 $22,083 9 Well $42,030,827 $16,943,019 $26,259,828 10 Base 1 $35,636,477 $16,393,807 $20,827,605 11 Total $884,168,143 $429,509,888 $463,045,763 Table 2: Wastewater System Assets Value Line Facility Replacement Project Cost 2024 Accumulated Depreciation 2024 RCLD 2024 1 Pipes 8" and Smaller $313,790,094 $134,370,058 $179,003,998 2 Pipes Greater than 8" $42,760,574 $18,310,778 $24,393,102 3 LS $833,515 $374,202 $459,312 4 Base1 $5,754,965 $2,581,945 $3,328,828 5 Total $363,139,147 $155,636,984 $207,185,240 DEBT BALANCES In addition to the value of the water system assets, this method will also account for debt principal balances. WRE used debt balances as December 31, 2024 to maintain consistency as shown below in Table 3. As mentioned earlier, there is currently no debt for the wastewater system. Table 3: Water Outstanding Debt Principal Balance Line Existing Debt Outstanding Principal 1 2017A Revenue Bonds $21,730,000 2 2022A Revenue Bond $31,325,000 3 Total $53,055,000 1 Base assets refer to Richfield Headquarters base assets as well as vehicles and equipment such as trailers, forklifts, trucks, etc. Page 46 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 4 TOTAL WATER SYSTEM VALUE To arrive at the total value of the water system, WRE subtracted the total outstanding debt principal balance in Table 3 (Line 3) from the total RCLD water system assets value in Table 1 (Line 11). The Total Water System Value is shown in Table 4 (Line 3). Table 4: Total Water System Value Line Water System Value Amount 1 Water System Assets $463,045,763 2 Less Outstanding Debt Principal ($53,055,000) 3 Total $409,990,763 TOTAL WASTEWATER SYSTEM VALUE AND BACKBONE VALUE The Total Wastewater System Value is calculated by subtracting the debt principal balance from the total RCLD assets value in Table 2 (Line 5). Since the debt principal balance is zero, the total wastewater system value equals approximately $207,185,240. The Total Wastewater System Backbone Value is utilized to calculate wastewater capacity fees. It includes all of the RCLD assets value from Table 2, less the wastewater pipes 8-inches in diameter and smaller. The results are shown in Table 5. Pipelines 8” and smaller represent approximately 88% of the wastewater system total pipeline mileage and are included in the “Frontage Charge” calculation in Table 16. Table 5: Total Wastewater System Backbone Value Line Wastewater System Value Amount 1 Wastewater System Assets Value $207,185,240 2 Less Pipelines 8" and Smaller $179,003,998 3 Total Wastewater System Backbone Value $28,181,242 CURRENT DEMAND Capacity is expressed in terms of demand on the system in EDUs rather than the number of service connections. For the water system, EDUs are calculated based on meter capacity ratios, which represent the safe operating capacity of a water meter relative to the safe operating capacity of a 1” meter (the standard meter size for new connections in the District). This ensures that costs are allocated appropriately across different capacity demands of the system since larger meter sizes have higher capacity demands. All meters under 1” are also considered as 1”. The safe operating capacities from the American Water Works Association (AWWA) M1 Principles of Water Rates, Fees and Page 47 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 5 Charges, Seventh Edition (M1 Manual) were utilized in the conversion process, consistent with the methodology used in 2023 and 2024. The total EDU count was calculated by multiplying the meter counts by the meter capacity ratio for each meter size. Table 6 shows the total EDU amount (Line 9) based on meter counts as of December 31, 2024. Table 6: Water System Demand by Meter Size Line Meter Size Meter Count Safe Operating Capacity (gpm) Meter Capacity Ratio Total EDUs 1 5/8" 25 20 1.00 25 2 3/4" 5,583 30 1.00 5,583 3 1" 18,140 50 1.00 18,140 4 1 1/2" 656 100 2.00 1,312 5 2" 1,127 160 3.20 3,606 6 3" 44 350 7.00 308 7 4" 4 630 12.60 50 8 6" 1 1,300 26.00 26 9 Total 25,580 29,0511 1 The difference in EDU amount is due to rounding. For the wastewater system, EDUs relate the relative demand of each service connection based on customer class, so costs are appropriately allocated across different capacity demands of the system. For residential customers, EDUs are calculated based on the ratio of densities between single family and multi-family (master metered) residential dwelling units. For commercial customers, EDUs are calculated based on average commercial flow in gallons per day (gpd) relative to the wastewater flow of a single family residence, in this case equal to approximately 172 gpd. The same density and gpd values were used as in 2023 and 2024. Table 7: Wastewater System Demand by EDU Line Customer Class Density / GPD Number of Accounts Multiple of SFR EDUs 1 Residential 2 Individual 3.05 22,239 1.00 22,239 3 Master metered 2.50 1,627 0.82 1,334 4 Commercial 839 441 4.87 2,1502 5 Residential Subtotal 23,866 23,573 6 Commercial Subtotal 441 2,150 7 Total 24,307 25,723 2 The difference in EDU amount is due to rounding. Page 48 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 6 EQUITY BUY-IN CAPACITY FEE The equity buy-in capacity fee for water was calculated by dividing the total water system value in Table 4 by the current total number of EDUs from Table 6. This results in a per EDU cost of approximately $14,113 shown below in Table 8 for properties with adequate water mains fronting their property. For properties without adequate water mains fronting their property, the RCLD value of pipelines 8-inch in diameter and smaller is subtracted from the total water system value, as shown in Table 9. Table 8: Water Capacity Fee Calculation – Adequate Water Main Fronts Property Line Capacity Fee Calculation Amount 1 Total Water System Value $409,990,763 2 Divided by Total EDUs 29,051 3 Capacity Fee per EDU $14,113 Table 9: Water Capacity Fee Calculation – Developer to Construct Water Main in Front of Property Line Capacity Fee Calculation Amount 1 Total Water System Value $409,990,763 2 Less Pipelines 8" and Smaller $105,304,569 3 Divided by Total EDUs 29,051 4 Capacity Fee per EDU $10,488 The per EDU cost is then multiplied by the meter capacity ratios from Table 6 to determine the appropriate fee for each meter size. The current proposed rates for each meter size are shown below in Table 10 for properties with adequate water mains fronting the property and Table 11 for properties requiring developers to construct water mains in front of the property. Table 10: Current and Proposed Water Capacity Fee Schedule – Adequate Water Main Fronts Property Line Meter Size Meter Capacity Ratio Current Fee Proposed Fee 1 1" and smaller 1.00 $13,900 $14,113 2 1 1/2" 2.00 $27,801 $28,226 3 2" 3.20 $44,481 $45,161 4 3" 7.00 $97,302 $98,790 5 4" 12.60 $175,144 $177,822 6 6" 26.00 $361,409 $366,935 Page 49 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 7 Table 11: Current and Proposed Water Capacity Fee Schedule – Developer to Construct Water Main in Front of Property Line Meter Size Meter Capacity Ratio Current Fee Proposed Fee 1 1" and smaller 1.00 $10,045 $10,488 2 1 1/2" 2.00 $20,091 $20,976 3 2" 3.20 $32,146 $33,562 4 3" 7.00 $70,318 $73,416 5 4" 12.60 $126,573 $132,149 6 6" 26.00 $261,182 $272,689 The equity buy-in wastewater capacity fee is calculated by dividing the total wastewater system backbone value in Table 5 by the current total number of EDUs from Table 7. This results in a per EDU cost of approximately $1,096 shown below in Table 12. Table 12: Wastewater Capacity Fee Calculation Line Capacity Fee Calculation Amount 1 Total Backbone System Value $28,181,242 2 Divided by Total EDUs 25,723 3 Capacity Fee per EDU $1,096 The per EDU cost is then multiplied by the multiple of SFR values from Table 7 to determine the appropriate fee for each residential customer class. Table 13: Current and Proposed Wastewater Capacity Fee Schedule - Residential Line Customer Class Multiple of SFR Current Fee Proposed Fee 1 Individual 1.00 $865 $1,096 2 Master Metered 0.82 $709 $8983 3 The difference in fee amount is due to rounding. For each commercial customer class, multiple of SFR values are determined based on average flow for each class relative to the average flow of a single-family residential customer, in this case equal to 253 gallons per day. The per EDU cost is then multiplied by each multiple of SFR value in Table 14 to determine the appropriate fee for each commercial customer class. The fee for each customer also accounts for building square footage, shown in Table 15. Page 50 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 8 Table 14: Current and Proposed Wastewater Capacity Fee Schedule – Commercial Line Customer Class Unit Multiple of SFR Current Fee Proposed Fee 1 SFR 1 unit 1.00 2 AMUSEMENT PARKS 1000 sqft 1.37 $1,186 $1,503 3 AUTOMOBILE DEALERSHIP 1000 sqft 0.39 $338 $429 4 AUTO REPAIR SHOP 1000 sqft 0.39 $338 $429 5 AUTOMOTIVE SERVICE 1000 sqft 0.39 $338 $429 6 USED CAR LOT 1000 sqft 0.39 $338 $429 7 AIRPORT AND RELATED 1000 sqft 0.55 $478 $606 8 BOWLING ALLEYS 1000 sqft 0.59 $509 $645 9 CONVENTIONAL CAR WASH 1000 sqft 15.53 $13,431 $17,018 10 COIN OPERATED CAR WASH 1000 sqft 2.74 $2,372 $3,005 11 CEMETERY & RELATED 1000 sqft 0.39 $338 $429 12 CHURCH BUILDINGS 1000 sqft 0.20 $171 $217 13 DORMITORY 1000 sqft 0.99 $854 $1,083 14 ENTERTAINMENT CENTER 1000 sqft 1.37 $1,186 $1,503 15 FINANCIAL BUILDINGS 1000 sqft 0.39 $338 $429 16 FRATERNAL BUILDINGS 1000 sqft 0.49 $424 $537 17 FUNERAL HOME 1000 sqft 0.39 $338 $429 18 GOLF COURSE 1000 sqft 0.39 $338 $429 19 HEALTH CLUB 1000 sqft 0.34 $290 $368 20 HOSPITAL 1000 sqft 1.00 $865 $1,096 21 HIGH DEMAND HOTEL/MOTEL 1000 sqft 1.12 $967 $1,225 22 LUMBER/CONSTR MATL YARD 1000 sqft 0.18 $154 $195 23 MARINAS 1000 sqft 0.55 $478 $606 24 SUPERMARKET 1000 sqft 0.59 $509 $645 25 CONVENIENCE MARKET 1000 sqft 0.39 $338 $429 26 SINGLE MEDICAL BLDGS TO 3 STORIES 1000 sqft 1.17 $1,015 $1,286 27 SMALL MEDICAL CENTER 1000 sqft 1.17 $1,015 $1,286 28 MEDICAL CENTER COMPLEX 1000 sqft 1.17 $1,015 $1,286 29 HIGH RISE MEDICAL 1000 sqft 1.17 $1,015 $1,286 30 CONVERTED RESIDENCE TO MEDICAL 1000 sqft 1.17 $1,015 $1,286 31 MOBILE HOME PARK 1000 sqft 0.51 $444 $563 32 LOW DEMAND HOTEL/MOTEL 1000 sqft 1.12 $967 $1,225 33 MOTORCYCLE/SMALL VEHICLE BLDG 1000 sqft 0.39 $338 $429 34 NURSERIES (PLANTS) 1000 sqft 0.09 $79 $100 35 NURSING HOME 1000 sqft 1.03 $889 $1,126 36 CONVALESCENT HOSPITALS 1000 sqft 0.98 $848 $1,074 Page 51 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 9 Line Customer Class Unit Multiple of SFR Current Fee Proposed Fee 37 CONVERTED RES USED AS NURSING 1000 sqft 1.03 $889 $1,126 38 LOW RISE RETIREMENT BUILDING 1000 sqft 1.12 $967 $1,225 39 HIGH RISE RETIREMENT BUILDING 1000 sqft 1.12 $967 $1,225 40 SINGLE OFFICE BLDGS TO 3 STORIES 1000 sqft 0.40 $342 $433 41 SMALL OFFICE CENTER 1000 sqft 0.40 $342 $433 42 OFFICE COMPLEX 1000 sqft 0.40 $342 $433 43 HIGH RISE OFFICE 1000 sqft 0.40 $342 $433 44 CONVERTED RESIDENCE TO OFFICE 1000 sqft 0.40 $342 $433 45 PARKING GARAGE 1000 sqft 0.18 $154 $195 46 PAVED PARKING LOT 1000 sqft 0.18 $154 $195 47 RECREATION 1000 sqft 1.37 $1,186 $1,503 48 RECREATION VEHICLE PARK 1000 sqft 0.22 $188 $238 49 RESTAURANT - LOW DEMAND 1000 sqft 1.90 $1,640 $2,079 50 RESTAURANT - COFFEE SHOP 1000 sqft 3.79 $3,281 $4,157 51 RESTAURANT - DINNER HOUSE 1000 sqft 3.79 $3,281 $4,157 52 RESTAURANT - CONVERSION FROM SFR 1000 sqft 3.79 $3,281 $4,157 53 PRE-SCHOOLS, NURSERY OR CARE 1000 sqft 0.79 $684 $866 54 PRIVATE SCHOOLS 1000 sqft 0.79 $684 $866 55 AUTOMOTIVE SERVICE STATION 1000 sqft 0.39 $338 $429 56 MARINE SERVICE STATION 1000 sqft 0.39 $338 $429 57 COMBIN: SERV STN/RESTAURANT 1000 sqft 0.39 $338 $429 58 COMBIN:SERVICE STN/CONVIENCE MKT 1000 sqft 0.39 $338 $429 59 LOW FLOW CENTER 1000 sqft 0.31 $270 $342 60 AVERAGE FLOW CENTER 1000 sqft 0.79 $684 $866 61 HIGH FLOW CENTER 1000 sqft 1.28 $1,111 $1,407 62 SKATING RINKS 1000 sqft 0.59 $509 $645 63 DEPARTMENT STORE 1000 sqft 0.22 $188 $238 64 DISCOUNT STORE 1000 sqft 0.22 $188 $238 65 UNATTACHED SINGLE STORE 1000 sqft 0.22 $188 $238 66 STRIP STORE 1000 sqft 0.22 $188 $238 67 STORE WITH OFFICES OR LIV QTR 1000 sqft 0.79 $684 $866 68 STORE W/ OFFICE UPSTAIRS 1000 sqft 0.79 $684 $866 69 DRIVE-IN THEATER 1000 sqft 0.09 $79 $100 70 UNATTACHED THEATER 1000 sqft 0.49 $424 $537 71 CHEMICAL TANK AND BULK STORAGE 1000 sqft 1.00 $865 $1,096 72 FOOD PROCESSING PLANT 1000 sqft 1.00 $865 $1,096 73 COLD STORAGE PLANT 1000 sqft 1.00 $865 $1,096 74 FACTORY 1000 sqft 1.00 $865 $1,096 Page 52 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 10 Line Customer Class Unit Multiple of SFR Current Fee Proposed Fee 75 LIGHT INDUSTRIAL - SINGLE TENANT 1000 sqft 0.30 $256 $325 76 LIGHT INDUSTRIAL - MULTI TENANT 1000 sqft 0.30 $256 $325 77 RESEARCH AND DEVELOPMENT 1000 sqft 0.30 $256 $325 78 WAREHOUSE - SINGLE TENANT 1000 sqft 0.10 $85 $108 79 WAREHOUSE - MULTI TENANT 1000 sqft 0.10 $85 $108 80 STEEL BUILDING 1000 sqft 0.04 $34 $43 81 MINI-WAREHOUSE 1000 sqft 0.04 $34 $43 82 INDUSTRIAL PARK 1000 sqft 0.30 $256 $325 83 RECREATIONAL VEHICLE STORAGE 1000 sqft 0.10 $85 $108 84 TRUCK TERMINAL 1000 sqft 0.10 $85 $108 85 GOVERNMENTAL USE 1000 sqft 0.78 $677 $857 86 PUBLIC UTILITY 1000 sqft 1.00 $865 $1,096 87 WATER MUTUAL OR COMPANY 1000 sqft 1.00 $865 $1,096 88 CONVERSION-COMPOSITE PROP 1000 sqft 1.00 $865 $1,096 89 LAUNDROMAT 1000 sqft 15.12 $13,072 $16,563 90 NIGHTCLUB 1000 sqft 1.38 $1,196 $1,516 91 UNITED STATES POST OFFICE 1000 sqft 0.25 $215 $273 Table 15 shows an example calculation for an auto repair shop with one new sewer connection and a square footage of 800. Table 15: Commercial Wastewater Example Calculation Line Example Calculation Amount 1 Proposed Fee $429 2 Times Square Footage 800 3 Divided by Units 1,000 4 Total Capacity Fee $343 FRONTAGE CHARGES In addition to the capacity fees calculated above, if a property has an adequate sewer main fronting the property, a frontage charge will apply. If a developer is required to upsize an existing sewer or construct a new sewer in front of the property to connect to the District’s sewer system, like the wastewater capacity fee scenario above, frontage charges will not be applied. To calculate the proposed frontage charge, the RCLD value of the wastewater pipelines 8-inch in diameter and smaller from Table 2 (Line 1) was divided by the total number of wastewater EDUs from Table 7 (Line 7). The Frontage Charge per EDU results are shown in Table 16. The Frontage Charge per EDU is based on the average length of single family residence parcels (sewer frontage), which is 75 feet. For a single family residence (1 EDU), the frontage charge will be $6,959. For master metered or Page 53 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 11 commercial facilities, the frontage charges are calculated by multiplying $6,959 by the ratio of actual sewer frontage divided by 75 feet. Table 16: Frontage Charge Calculation Line Frontage Charge Calculation Amount 1 RCLD System Value of Pipelines 8" and smaller $179,003,998 2 Divided by Total EDUs 25,723 3 Frontage Charge per EDU $6,959 ADU CALCULATION Capacity fees charged to ADUs must be proportionate to the burden of the ADU relative to the primary residence, based on either square footage or the number of water fixtures as defined in the Uniform Plumbing Code. The District has chosen to continue calculating capacity fees based on square footage. The methodology for calculating capacity fees for ADUs was adopted from assessing ADU square footage relative to an average single-family residence in Yorba Linda to assessing ADU square footage relative to the square footage of the primary dwelling where the ADU resides pursuant to the January 2025 Accessory Dwelling Unit Handbook prepared by the California Department of Housing and Community Development. For example, a 900 square foot ADU with a primary dwelling equal to 2,700 square feet would be charged one third (1/3) of the single-family water and wastewater capacity fees. Table 17 shows the example calculations for ADU water and wastewater capacity fees. Table 17: ADU Example Calculation Line ADU sqft Primary Dwelling sqft ADU Ratio ADU Wastewater Capacity Fee ADU Water Capacity Fee 1 900 2,700 1/3 $365 $4,704 Page 54 of 55 Yorba Linda Water District Water and Wastewater Capacity Fee Update Page 12 Water and wastewater (sewer) capacity fees and frontage charges are included below: Water Capacity Fee Adequate Water Main Fronts Property Meter Size Fee 1 Inch Meter $14,113 1-1 1/2 Inch Meter $28,226 2 Inch Meter $45,161 3 Inch Meter $98,790 4 Inch Meter $177,822 6 Inch Meter $366,935 Developer to Construct Water Main in Front of Property Meter Size Fee 1 Inch Meter $10,488 1-1 1/2 Inch Meter $20,976 2 Inch Meter $33,562 3 Inch Meter $73,416 4 Inch Meter $132,149 6 Inch Meter $272,689 Sewer Capacity Fee Property Type Fee Single Family Residence $1,096 Master Metered 0.82 x Number of Units x $1,096 = $898 Accessory Dwelling Unit Sq ft of ADU/ Sq ft of Primary Dwelling x $1,096 Commercial Equivalent Dwelling Unit x Total SF/1,000SF x $1,096 Equivalent Dwelling Unit (EDU is based on one Single Family Residence) Frontage Charge Applies to Properties Where Adequate Sewer Main Fronts Property and Property is Not Subject to Developer Reimbursement Program Property Type Fees Single Family Residence $6,959 Master Metered Sewer Frontage (FT)/75 FT x $6,959 Commercial Sewer Frontage (FT)/75 FT x $6,959 Page 55 of 55 BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING Retail Water Consumption 3/27/2025 9 FY2025-26 Budget Calculation Retail water consumption is calculated from historic trends and production demand. “PT” is Pass-Through. Budget FY 2025-26 Projected FY 2024-25 Prior Year FY 2023-24 7,362,786 7,605,355 6,443,548 Consumption (CCF)** 16,903 AF 17,459 AF 14,792 AF Consumption (AF)* $ 30,012,591 $ 28,447,649 $ 20,363,484 Revenue ($) $ 3.74 + PT $ 0.37 = $ 4.11$ 3.43 + PT $ 0.34= $ 3.77$ 3.14 + PT $ 0.31 = $ 3.45Consumption Unit Price (per CCF) * Acre-Feet (AF) **Centum cubic feet (CCF) (1 CCF = 100 cubic feet) (1 CCF = 748 gallons) 14,792 AF 6,443,548 CCF 17,459 AF 7,605,355 CCF 16,903 AF 7,362,786 CCF 16,943 AF 7,380,219 CCF 16,943 AF 7,380,219 CCF 16,943 AF 7,380,219 CCF $5.8M $6.0M $6.3M $6.5M $6.8M $7.0M $7.3M $7.5M $7.8M Prior Year FY2023-24 Projected FY2024-25 Budget FY2025-26 CC F Retail Consumption Consumption (CCF)2021 Rate Study Assumptions REVISED ITEM NO. 8.1. Revenue Analysis 3/27/2025 10 Water Revenue (Res.) Water Revenue (Comm & Fire) Water Revenue (Irrigation)Service Charges Property Tax - CFC Sewer Charge Revenue Sewer Parcel Assmnt Other Operating Revenue FY24 Prior Year 17,332,568 1,884,552 3,622,962 15,999,358 3,526,631 3,585,075 417,051 1,950,873 FY25 YE Projections 21,421,085 2,105,117 4,921,445 17,546,715 3,890,245 4,252,641 468,797 1,566,272 FY26 Budget 22,584,477 2,376,634 5,195,174 19,164,365 4,260,742 4,672,028 512,395 1,835,971 $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 Increases due to proposed FY 2025-26 rates from Prop 218 rate schedule REVISED ITEM NO. 8.1. New Meter Connection Fees 3/27/2025 Board of Directors Workshop 5 Meter Size (Inches) FY24-25 Fee per Meter FY25-26 Fee Per Meter Fee Increase or (Decrease) Fee Change % 1 $910 $900 $(10)(1)% 1 ½$1,460 $1,480 $20 1% 2 $1,860 $1,900 $40 2% > 2 Incurred Costs Incurred Costs $0 - Construction Meter Connection Fees Activity FY24-25 Fees FY25-26 Fees Fee Increase or (Decrease) Fee Change % Deposit $3,360 per Meter $3,160 per Meter $(200) per Meter (6)% New Account Setup $20 per Occurrence $30 per Occurrence $10 per Occurrence 50% Meter Use $9.21 per Day $8.66 per Day $(0.55) per Day (6)% Move to a New Location $145 per Occurrence $145 per Occurrence $0 per Occurrence - Temporary Water Service – 2X Commodity Rate in effect $7.54 per Unit (Pending calculated pass-through) $8.22 per Unit (Pending calculated pass-through) $0.68 per Unit 9% REVISED ITEM NO. 8.2. Miscellaneous Water Service Fees 3/27/2025 Board of Directors Workshop 6 Fee Type FY24-25 Fees FY25-26 Fees Fee Increase or (Decrease) Fee Change % Change of Meter Size Fee Incurred Costs Incurred Costs $0 - Backflow Device Monitoring Fee $4.07 per month $4.15 per month $.08 per month 2% Single Service Fee $2,110 $2,450 $340 16% REVISED ITEM NO. 8.2. Water Tampering Penalties 3/27/2025 Board of Directors Workshop 7 Violation FY24-25 Penalty FY25-26 Penalty Cost Increase or (Decrease) Cost Change % Meter Tampering Penalties 1st $ 1,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 130 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $(870)(87)% 2nd $ 2,500 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 700 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $(1,800)(72)% 3rd $ 5,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $ 1,300 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $(3,700)(74)% Hydrant Tampering Penalties 1st $ 1,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 1,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $0 - 2nd $ 2,500 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 2,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $(500)(20)% 3rd $ 5,000 + Incurred Costs of Inspection, Repair, and Estimated Usage $ 3,000 + Incurred Costs of Inspection, Repair, Calibration and Estimated Usage $(2,000)(40)% REVISED ITEM NO. 8.2. Sewer Single Service Fee 3/27/2025 Board of Directors Workshop 12 Fee FY24-25 FY25-26 Fee Increase or (Decrease) Fee Change % Single Service Fee $1,890 $2,120 $230 12% FOG Fee $250 per year $270 per year $20 8% FOG Non- Compliance Fee $440 per Occurrence $340 per Occurrence $(100)(23)% FOG Mitigation Fee Actual Cost Actual Cost $0 - REVISED ITEM NO. 8.2. 3/27/2025 Board of Directors Workshop 13 Violation FY24-25 Penalty FY25-26 Penalty Cost Increase or (Decrease) Cost Change % Sewer Tampering Penalties 1st $ 1,000 + Actual Costs of Inspection, Repair and Estimated Usage $ 1,000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - 2nd $ 2,500 + Actual Costs of Inspection, Repair and Estimated Usage $ 2,000 + Actual Costs of Inspection, Repair and Estimated Usage $(500)(20)% 3rd $ 5,000 + Actual Costs of Inspection, Repair and Estimated Usage $ 3,000 + Actual Costs of Inspection, Repair and Estimated Usage $(2,000)(40)% Illegal Sewer System Connection Penalties 1st $ 5,000 + Actual Costs of Inspection, Repair and Estimated Usage $ 5,000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - 2nd $ 10,000 + Actual Costs of Inspection, Repair and Estimated Usage $ 10,000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - 3rd $ 15,000 + Actual Costs of Inspection, Repair and Estimated Usage $ 15,000 + Actual Costs of Inspection, Repair and Estimated Usage $0 - Sewer Tampering PenaltiesREVISED ITEM NO. 8.2.