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Home My WebLink About2015-03-31 - Board of Directors Meeting Agenda Packet Yorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, March 31, 2015, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Ric Collett, President Michael J. Beverage, Vice President Phil Hawkins Robert R. Kiley Gary T. Melton 4. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to three minutes. 5. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 5.1. Draft FY 2015/16 Operating Budget (Materials to be provided at the meeting.) 6. ADJOURNMENT 6.1. The next Regular Board of Directors Meeting will be held Thursday, April 9, 2015 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http://www.ylwd.com/. Accommodations for the Disabled Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714-701-3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. ITEM NO. 5.1 AGENDA REPORT Meeting Date: March 31, 2015 Subject: Draft FY 2015/16 Operating Budget (Materials to be provided at the meeting.) ATTACHMENTS: Description: Type: Backup Material Distributed Less Than 72 Hours Prior to Budget Presentation.pdf Backup Material the Meeting Backup Material Distributed Less Than 72 Hours Prior to CIP Budget and Expenses.pdf Backup Material the Meeting Backup Material Distributed Less Than 72 Hours Prior to the Meeting Yorba Linda Water District VP Budget Workshop # 1 FY 2015/ 16 Presented By: Marc Marcantonio, General Manager Delia Lugo, Finance Manager Marc Backup Material Distributed Less Than 72 Hours Prior to the Meeting Fiscal Year 2014 Outlook Millions $25 $20 $15 $10 $5 $0 Backup Material Distributed Less Than 72 Hours Prior to the Meeting 2012 Water Modell - What Changed? Chart 3 - Total Reserve Chart I. 2012 2013 2014 2015 2016 2017 2018 Ending Balances +Target • Alert Balances k Chart 1 - Revenue Adjustments & 3000 2000 100% Oho ,erage • $500,000 Annexation Revenue listed as Cash • No CIPs listed after FYI 3/ 14 • 70% GW Available Starting FYI 3/ 14-- No CUP i Backup Material Distributed Less Than 72 Hours Prior to the Meeting TRENDS IN WATER PRICES V CPI �t.e r Trends in consumer prices(CPI)for utilities d5" Import Water +x$1 ,000 ]fir Backup Material Distributed Less Than 72 Hours Prior to the Meeting Historical Water Costs Groun4kvater �555 '�� FY 08/09 FY 09/10 FY 10/11 FY 11 /12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 MWD OCWD 25,000 20,000 15,000 5,000 n Backup Material Distributed Less Than 72 Hours Prior to the Meeting Total Water Purchases (AF) vs. Population ■ 09/10 10/11 11/12 �Water Purchases 12/13 13/14 Anticipated Purchases 14/15 Population 74,000 al Backup Material Distributed Less Than 72 Hours Prior to the Meeting Additional Factors in the Cost of Providing Water • Assumed no payment of CUP- $972,000 ( FYI d- 1 r%1 • Edison Increase - 5% vs. 9% • City of Yorba Linda Sewer Transfer Agreeme (Valves/Manholes - $80,000 FYI 5- 16) • Vehicle Equipment & Capital Outlay Not in P ( Dump Trucks, etc. - $ 1 .4M FYI 5- 16) • COLA Not in Model- Agreement in Sept. • Increase in Professional Services (Legal Costs for Freeway Complex Fire) Backup Material Distributed Less Than 72 Hours Prior to the Meeting Fiscal Year 2015 / 1 Outlook Backup Material Distributed Less Than 72 Hours Prior to the Meeting Budget Summary (Water & Sewer) Approved Forecast Proposed d e Y End Budget FY 14 ,�,,, r- .., 14/15) Y" - To fa-I-Cf eO r n-ue $31,025,71 29,922, 19 ` ' 87,587 Total Non-Operating Revenue $1,929,167 $2,162,170 $2,084,125 Total Revenue $32,954,880 $32,084,390 $31,271,712 Expenses Variable Water Costs Salary-Related Expenses Supplies & Services Total Operating Expenses Total Non- Operating Expenses Total Expenses Income Before Depreciation & Capital Contributions Depreciation Capital Contributions Income (Loss) $14,928,972 $13,850,950 $14,762,832 $8,509,812 $8,417,231 $8,817,107 $4,389,840 $3,961,780 $4,590,899 $27,828,624 $26,229,962 $28,170,838 $1,852,793 $1,725,692 $29,681,417 $3,273,463 $7,337,500 $0 $27,955,654 $4,128,736 $7,354,700 $80,212 $1,677,685 $29,848,523 $1,423,189 $7,350,000 ($4,064,037) ($3,145,752) ($5,926,811) I Backup Material Distributed Less Than 72 Hours Prior to the Meeting Key Budget Assumptions Total Volume of Water Purchased 10Z �= - •_Ce: =OA MW DOC Blended Rate MWDOC Allocation Allowance MW DOC Allocation Overage @ $1 ,500 AF CUP Blended Rate (w/Allocation Surcharge) 20,23 6 A F $368/A F $1 ,040/$1 ,: 7,521 A F 145 AF $947 AF Backup Material Distributed Less Than 72 Hours Prior to the Meeting Revenues mWo FYI 4-15 Budget FYI 4-15 Projected FYI 5-16 Budget ■ Water Base Fee Sewer Charge ■ Water Variable Charge Other Op. Revenue Backup Material Distributed Less Than 72 Hours Prior to the Meeting Operating Expenses & CIP K - FYI 4-15 Budget Salaries & Benefits FYI 4-15 Projected Supplies & Services FYI 5-16 Budget Variable Costs Approve Backup Material Distributed Less Than 72 Hours Prior to the Meeting Cost of the Drought (FYI 4- 15 Projection vs. FYI 5- 16 Budget) :, - .sue. .. _._. _:+�sb r_ � �•�.�_'.r-� ,��-��..`�� r _ `— is /'✓ `� �. — — � /� —r • Approx. $737,000 DECREASE in VV U 1 Revenues • Approx. $835 ,000 INCREASE in Varic Costs • Allocations = $777,000 INCREASE in OC Costs ( per Brady & Associates Study) • Decrease in BPP/ Increase in RA Backup Material Distributed Less Than 72 Hours Prior to the Meeting Fixed Charge As A Percent of Operating $25,000,000 $21,862,795 $20,000,000 $15,000,000 $10,000,000 Expenses - Ah, Target: 30%-4_0%o. $23,790,095 $5,000,000 15% 15% $0 Actuals Actuals FY 2011/12 FY 2012/13 ■Fixed Charge $24,853,201 17% Actuals FY 2013/14 ■Operating Expenses Backup Material Distributed Less Than 72 Hours Prior to the Meeting Fixed Charge As A Percent of Operating 7 Mo. Ending 1 /31 /15 i e$og 17%!0gJJ0( 7% Revenue r e 7I ACT. i :r ndar�g � 31-/,1 4 4A 62% Projected for FYE 201 20% 16% 7% 58% - 4 ,: rte- $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Local Agency Comparison Fixed Charge IncreaseJ9 $2.88 $23.04 $16.77 .A.P' Ad YLWD Walnut Valley Mesa WD WD $0.75 Serrano WD Laguna Beach CWD C $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Local Agency Comparison $96.90 $85.62 YLWD Walnut Valley WD Avg. MonfiNfly'kili (1 Inc .Meter, 25:�,pits) S12.06 $3.56 41 ri $142.84 $113.71 $108.97 $26.98 Mesa WD Serrano WD Laguna Golden South Coast East Orange Beach CWD State WC WD CWD 0 0 Backup Material Distributed Less Than 72 Hours Prior to the Meeting FY 15/16 Expenses Key Factors ( Budget-to - Budget) A-W, e� r_ . . _r 17- ($ 166, 00) -- Total Variable Water Cost Dec I NZ; — Includes MW D, OCW D, Power & Pumping — Based on 8% Conservation (5% from Projected FYI 4-15 Ac — Also results in $2.5M DECREASE in Water Sales $201 ,000 -- Supplies & Services Net Increase — $131 ,000 in Various Expenses-- Eng. Water Model, Great F Maintenance, Bank Fees, Landscape Contractor, etc. — $136,000 in Material Expenses-- Replacement Water Met( YL Sewer Transfer Agreement — $75,000 in Maintenance Expenses-- City of YL Sewer Trani Agreement — $66,000 in Travel & Conference Expenses — ($132,000) in Professional Services-- Legal Costs (Fire) — ($75,000) in Election Expenses Backup Material Distributed Less Than 72 Hours Prior to the Meeting FY 15/16 Expenses Key Factors ( Budget-to -,Budget) • $307,000 -- Personnel-Related Expenses Increa — Includes Projected Salary Increases, PERS, Medical & OPE Contribution • $576,000-- Vehicle Equip. & Capital Outlay Inc — Includes Sewer Vactor Truck ($400,000) from Previous Yeai — Hydro-Excavator Truck ($425,000) — 13 Sewer Re-lines ($250,000) — SCADA Upgrades & Various IT Emergency Systems ($96,00 IV g 0 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Pass-through Variable Costs �tl StIt,V t,25�__t_.-14 • Current Water Model DOES NOT 0 7 include power costs for pass-thr( FYI 5- 16 Budget- power costs INC $530, 000 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Pass-through Variable Costs - .Govern m de If an a ency pure ses wholesale water from a public agency, the schedule of fees or charges mal provide for automatic adjustments that pass throug the adopted increases or decreases in the wholesa water charges established by the other agency" vs . "Spirit of the Law " Resolution 07- 17, Section 3: Increased costs of purchased water and energy costs which are charged to YLW D from MW DOC, MW D, OCW D, SCE and/or Gas Co will pass through, applied on the ba of water usage. Variable Charge Base Fee TOTAL Backup Material Distributed Less Than 72 Hours Prior to the Meeting Base Fee Increase (3017o of Operating Expenses) $67.50 $67.50 $67.50 $67.50 $67.50 $16.77 $18.65 $20.70 $22.98 $25.50 $84.27 $86. 15 $88.20 $90.45 $93.00 * Assumes 25 units @$2.70 with a 1 inch Meter $67.50 j00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $23.04 Walnut Valley WD Backup Material Distributed Less Than 72 Hours Prior to the Meeting Local Agency Comparison (YLWD@ 30% of Operating Expenses) $27.75 Mesa WD YLWD $32.21 f $44.13 IL . M ■ - 1 Serrano WD Laguna Golden South Coast East Orange Beach CWD State WC WD CWD YLWD at end of FY19/20, Other agencies are FY15/16 Variable Charge Base Fee TOTAL Backup Material Distributed Less Than 72 Hours Prior to the Meeting Base Fee Increase (4017o of Operating Expenses) $67.50 $67.50 $67.50 $67.50 $67.50 $16.77 $19.82 $23.29 $27.60 $32.30 $84.27 $87.32 $90.79 $95. 10 $99.8C * Assumes 25 units @$2.70 with a 1 inch Meter $67.50 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Local Agency Comparison (YLWD@ 40% of Operating Expenses) $45.00 ONE Now- 4 T..t� $35.00 $30.00 $25.00 $20.00 $15.00 $23.04 $10.00 $5.00 Walnut Valley WD Mesa WD Serrano WD Laguna Beach CWD cz 0 40 YLWD Golden State WC YLWD at end of FY19/20, Other agencies are FY15/16 $44.25 J � � 1 South Coast East Orange WD CWD Backup Material Distributed Less Than 72 Hours Prior to the Meeting Replacement Costs for Water Only Assets ($531M) Above-Ground Facilities • 9 Wells & Richfield Plant • 14 Reservoirs • 12 BPS • 37 PRS • 10 Interconnections • 4 Import Water Connections - $ 146M Below-Ground Fc • Water Main Replacement (4 in- 39in) - $385M k f- Backup Material Distributed Less Than 72 Hours Prior to the Meeting Replacement Costs for Wastewater Only Assets ($258M) a c,,,--eM • Manholes • City Sewer Transfer Agreement = $ 1 S Backup Material Distributed Less Than 72 Hours Prior to the Meeting YLWD Reserve Types Water Capital Replacement so Water Operating Fund Water Emergency Fund 2008 COP Bond Debt Service Reserve Maintenance Reserve Employee Liabilities TOTAL: Planned CIPs Day-to-Day Payments Catastrophes Regulated Regulated Unanticipated R&R $17.3M $3.9M $1 .0M $2. 1 M $2.7M $151 ,000 Retiree Payout of $186,000 Vacation/Sick Time $27.3M $1 .8M $2.4M $1 .0M $2. 1 M $2.7M $200,000 $100,000 $10.3M ?I Backup Material Distributed Less Than 72 Hours Prior to the Meeting 5 Year CIP Projections See attachment FY 15/16 Revised 3/23/2015 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Total CIP Budget as Approved FY 2014/15 CIP Budget and Expenses 5 Year CIP Budget For Expenditures for Approved Projects 2009-22#21 S&W Well Project(Well No.21) $ Total CIP $ - $ 2,306,789 $ 940,790 $ 95,578 $ 845,212 $ 1,194,603 $ - $ - $ - $ - $ 1,194,603 Budget as Cy Additions to Adjusted Total Approved CIP Total Projected Under/(Over) FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 Year Future Project# Project Description Approved in FY CIPasApproved CIP Budget FY Budget for FY CIP Expenses in Expended for FY Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP Projected 3,000,000 $ 2,202,299 2014/15 by Board Action 2014/15 2014/15 FY 2014/15 14/15 Budget Expenditures Expenditures Expenditures Expenditures Expenditures Budgets $ 1,371,627 $ Operating $ 31,627 $ - $ - $ - $ 1,371,627 - Fairmont BPS Phase 2 $ - $ - $ - - $ - $ - Budget $ - $ - $ - $ - $ - $ - 1,100,OOO Subtotal $ 11,106,789 $ 1,450,000 $ 2009-22#21 S&W Well Project(Well No.21) $ 2,306,789 $ - $ 2,306,789 $ 940,790 $ 95,578 $ 845,212 $ 1,194,603 $ - $ - $ - $ - $ 1,194,603 2009-22#22 S&W Well Project(Well No.22) $ 2,500,000 $ - $ 2,500,000 $ 445,000 $ 36,451 $ 408,549 $ 211,320 $ 950,000 $ 1,040,000 $ 257,360 $ - $ 2,458,680 2010-11B Fairmont BPS Upgrade $ 6,300,000 $ - $ 6,300,000 $ 2,500,000 $ 122,898 $ 2,377,102 $ 3,000,000 $ 2,202,299 $ 400,000 $ - $ - $ 5,602,299 2014-23 Richfield Road Pipeline $ - $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 78,373 $ 1,371,627 $ 1,340,000 $ 31,627 $ - $ - $ - $ 1,371,627 - Fairmont BPS Phase 2 $ - $ - $ - - $ - $ - $ $ - $ - $ - $ - $ - $ - 1,100,OOO Subtotal $ 11,106,789 $ 1,450,000 $ 12,556,789 $ 5,335,790 $ 333,299 $ 5,002,491 $ 5,745,923 $ 3,183,926 $ 1,440,000 $ 257,360 $ - $ 10,627,209 Rehabilitation&Restoration 2014-12 Future Pipeline Project $ 2,690,000 (1,450,000) $ 1,240,000 $ 660,000 $ 21,872 $ 638,128 $ 760,000 $ 458,128 $ - $ - $ - $ 1,218,128 - Timber Ridge BPS Rehabilitation $ 250,000 - $ 250,000 $ 240,000 $ - $ 240,000 $ 240,000 $ 10,000 $ - $ - $ - $ 250,000 Lakeview Booster Piping $ 100,000 - $ 100,000 $ 100,000 $ 6,000 $ 94,000 $ 94,000 $ - . $ - $ - $ - $ 94,000 2014-11 PRS Rehabilitation Phase 2 $ 1,430,000 - $ 1,430,000 $ 100,000 $ 31,690 $ 68,310 $ 153,310 $ 528,000 $ 90,000 $ 627,000 $ - $ 1,398,310 - Annual Routine Capital R&R $ 4,020,000 $ (288,966) $ 3,731,034 $ - $ - $ - $ - $ - $ 1,520,000 $ 2,211,034 $ - $ 3,731,034 R&R Subtotal $ 8,490,000 $ (1,738,966) $ 6,751,034 $ 1,100,OOO $ 59,562 $ 1,040,438 $ 1,247,310 $ 996,128 $ 1,610,000 $ 2,838,034 $ - $ 6,691,472 Sewer Vehicle&Capital Equipment Replacement $ 472,000 $ 472,000 $ 472,000 $ 72,000 $ 680,000 Water Vehicle&Capital Equipment Replacement $ 449,000 $ 449,000 $ 449,000 $ 399,000 $817,000 $187,000 $165,000 $177,000 $180,000 $ 1,526,000 Vehicle&Capital Equipment Subtotal $ 921,000 $ - $ 921,000 $ 921,000 $ 471,000 $ - $ 1,497,000 $ 187,000 $ 165,000 $ 177,000 $ 180,000 $ 1,526,000 Subtotal $ 20,517,789 $ (288,966) $ 20,228,823 $ 7,356,790 $ 863,861 $ 6,042,929 $ 8,490,233 $ 4,367,054 $ 3,215,000 $ 3,272,394 $ 180,000 11 18,844,681 Repayment of LOC Principal to Wells Fargo Bank $7,000,000 Grand Total $ 23,585,780 $ 71,962 $ 23,657,742 $ 8,201,101 $ 1,096,182 $ 6,047,910 # $ 8,490,233 $ 11,367,054 $ 3,215,000 $ 3,272,394 $ 180,000 $ 18,844,681 Projects Completed In FY 14/15 2008-17B YL Blvd BPS(Booster Pump Station) $ 1,897,991 165,078 $ 2,063,069 $ 100,000 $ 125,285 $ 0 2013-20 Deville Drive Water Line Extention $ 50,000 12,635 $ 62,635 $ 25,000 $ 51,863 $ 0 2010-02 Lakeview Grade Separation $ 600,000 (28,096) $ 571,904 $ 264,311 $ 283,950 $ (0) 2010-02B* Orangeview Waterline Extension $ - 80,120 $ 80,120 $ 80,120 $ 0 2012-13 Yorba Linda High School Park $ 370,000 131,191 $ 501,191 $ 325,000 $ 446,084 $ 0 2014-135 Richfield Campus Spoils $ 150,000 $ 150,000 $ 130,ODO $ 145,020 $ 4,980 $ 3,067,991 $ 360,928 $ 3,428,919 $ 844,311 $ 1,132,321 $ 4,981 Repayment of LOC Principal to Wells Fargo Bank $7,000,000 Grand Total $ 23,585,780 $ 71,962 $ 23,657,742 $ 8,201,101 $ 1,096,182 $ 6,047,910 # $ 8,490,233 $ 11,367,054 $ 3,215,000 $ 3,272,394 $ 180,000 $ 18,844,681