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Home My WebLink About2015-04-30 - Board of Directors Meeting Agenda Packet Yorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, April 30, 2015, 8:00 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. 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. 5.1. Conference with Labor Negotiators Pursuant to Section 54957.6 of the California Government Code Agency Designated Representatives: Gina Knight, Human Resources/Risk Manager, and Connie Almond, Attorney, Liebert Cassidy Whitmore Employee Organization: Yorba Linda Water District Employees Association 6. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 6.1. Draft FY 2015/16 Operating Budget (Materials to be provided at the meeting.) 7. ADJOURNMENT 7.1. The next Regular Board of Directors Meeting will be held Monday, May 11, 2015 at 11:30 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. 6.1 AGENDA REPORT Meeting Date: April 30, 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 the Meeting Yorba Linda Water District VP Budget Workshop #2 FY 2015/ 16 Presented By: Marc Marcantonio, General Manager Delia Lugo, Finance Manager Cindy Botts, Management Analyst Backup Material Distributed Less Than 72 Hours Prior to the Meeting 0 J Fiscal Year 2015 / 16 Outlook - As of Mar 31 201 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 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 �w utlook r 201 uiremeants Backup Material Distributed Less Than 72 Hours Prior to the Meeting State of California's New Requirements V- 0 Vk- moss _ n a 5 c ,u t S - • Each agency determines how to meet " Conservation Standard " with Residential v Non-Residential Users • Reporting period : Jun 2015 - Feb 2016, as compared to same months in CY 2013. • Factors for a legitimate Higher R-GPCD are acknowledged , but not " credited " - Climate, Lot Size, Density, Income, GWRS, Fire Protection, k- 0 Backup Material Distributed Less Than 72 Hours Prior to the Meeting State of California's New Requirements- Compliance & Corrective Action . two as se wit -1� - Repo, allows for cumulative tracking o� the 9 month period . Corrective Action : Letters, Restrictions to Outdoor Use, Required Changes to Rate/Prices, $500/day fine (Water Code) - $ 10,000/day fine: Cease & Desist Order, Atto General ' s Office Backup Material Distributed Less Than 72 Hours Prior to the Meeting Calculation of SWRCB R-GPCD two . f _ ( " Total Monthly Production " x Monthly Residential Use Percentage x 325,851 ) /Annua Assumed Population/# of Days Where: in the Month Monthly Residential Use Percentage is Variable 325,851 = Conversion of AF to gallons Annual Assumed Population 2015 = 73,500 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Calculation of "Total Monthly Production" rcenJ to the annual production , minus : - OC-36 ( Black Gold ) - De Minimus & Flushing Water in Storage 10% Assumed Water Loss 6kb6..- - Backup Material Distributed Less Than 72 Hours Prior to the Meeting Calculation of "Conservation Standard " 'mot` , n f a rd . - Used to determine which of 9 tiers - % cut of state-wide 25% : 8% to 36% - Summer R-GPCD : 235 .22 - July, August, Sept 2014 - Results: 36% Cut from 2013 Usage - ** Once " Conservation Standard " is determined , 2014 data is irrelevant Backup Material Distributed Less Than 72 Hours Prior to the Meeting Calculation of SWRCB GPCD 0%do-A June July August September October November December January February 2, 190.65 A F 2,310.39 AF 2,273. 10 A F 1 ,994.36 AF 1 ,682.25 A F 1 ,328.92 A F 1 , 195.44 AF 1 ,042.33 A F 997. 18 AF 238.62 242.03 239.06 218.82 176.83 148.07 132. 14 121 .70 124.61 152.72 154.90 153.00 140.05 113. 17 94.77 84.57 77.89 79.75 Backup Material Distributed Less Than 72 Hours Prior to the Meeting R-GPCD Comparison >,,�. .`�-; u Goal Curr FY14-1' - 300.00 290.49 250.00 246.51 239.25 219.88 200.00 177.07 152.72 154.90 153.00 140.05 148.50 150.00 132.72 113.17 120.06 94.77 100.00 84.57 77.89 50.00 0.00 Jun Jul Aug Sep Oct Nov Dec Jan R-GCPD 2014-15 tR-GCPD Goal Backup Material Distributed Less Than 72 Hours Prior to the Meeting Revised Operating Plan - 3617o Reduction, 1517o Allocation 2016- A `hi With CUP and S e Mana 'i D 15% Allocate ` Proiection Annual Water Purchases 36% Reduction; "; 16,534.00 Percent GW CUP I mport Total Annual Month (A/F) (A/F) (A/F) (A/F) Demands Jul-15 1,237.69 134.28 574.09 1,946.05 12% Aug-15 1,217.71 137.85 559.07 1,914.64 12% Sep-15 1,054.11 132.71 493.04 1,679.85 10% Oct 15 878.52 133.19 405.25 1,416.96 9% Nov-15 671.61 133.20 314.54 1,119.35 7% Dec-15 563.88 130.90 312.15 1,006.92 6% Jan-16 480.24 132.57 265.14 877.96 5% Feb-16 459.44 131.03 249.46 839.93 5% Mar-16 557.39 131.39 306.57 995.35 6% Apr-16 747.01 133.22 364.79 1,245.01 8% May-16 1,030.89 131.74 484.16 1,646.79 10% Jun-16 1,168.01 133.78 543.41 1,845.19 11% FYTD 10.066.49 1.595.86 4.871.65 16.534.00 100% Backup Material Distributed Less Than 72 Hours Prior to the Meeting Revised Operating Plan - Import Water Costs Import Water Total Costs Water Purchases July-Dec 2015 Water Purchases Jan-Jun 2016 CUP Water Purchases CUP Allocation Costs Readiness to Serve Charge Capacity Charge Retail Connection Charge TOTAL $ 2)458)771 .64 $ 2,093,990.55 $ 983,949.76 $ 736,896.00 $ 270,691 .80 $ 257,953.50 $ 6,802,253.25 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Revised Operating Plan - Groundwater Costs Groundwater Total Costs Water Purchases July-Dec 2015 $ 1 ,8107 770.55 Water Purchases Jan-Jun 2016 $ 1 ,430,639.06 OCWD Annexation Annual Fee $ 3007000.00 TOTAL $ 3,541 ,409.61 ,ter e Backup Material Distributed Less Than 72 Hours Prior to the Meeting Power & Pumping Costs- 36% Reduction, 15% Allocation ; FY 151- 6 Total $/ AF' / AF o, mp - Yg Wells $ 69J,� 7 Highland $20.00 Highland $ 2051257.32 Lakeview $30.00 Lakeview $ 901966.31 Yorba Linda Boos- $40.00 Yorba Linda Blvd. $ 1211288.42 Valley View $30.00 Valley View $ 611227.33 Paso Fino $30.00 Paso Fino $ 381485.75 Fairmont $35.00 Fairmont $ 421626.96 Springview $ 21046.09 Springview $140.00 Timber Ridge $ 201460.94 Timber Ridge $60.00 Santiago $ 17,537.95 Santiago $120.00 Hidden Hills $ 261306.92 Hidden Hills $60.00 Box Canyon $ 26,306.92 Box Canyon $10.00 Elk Mountain $ 511152.35 Elk Mountain $75.00 $ 1 ,403,404. 13 Backup Material Distributed Less Than 72 Hours Prior to the Meeting of Total Demands by Zone 0— Green: Groundwater, Blue: Import Water 10.5 25.2 23.6 Mel 0 9.5 8.2 7.3 1 .7 1 .8 2.7 0.9 &1111 Zone 1 (428) "= - -- Zone 2 (570) Zone 3 (675 - VV, FA.) Zone 313 (670 - B. R.) Zone 4 (780 - Ga.) Zone 4 (780 - S.V.) Zone 4 (780 - E.M-) Zone 5 (1000 - L.C,S.A.) Zone 5 (920 - Q. H.) Zone 6 (1300 - C.H.) Zone 6 (1165 - C.D. B.) Zone 6D (1390 - HH) 0— Green: Groundwater, Blue: Import Water 10.5 25.2 23.6 Mel 0 9.5 8.2 7.3 1 .7 1 .8 2.7 0.9 &1111 Backup Material Distributed Less Than 72 Hours Prior to the Meeting MET Allocation Calculation y� _ �+�"%+�iiTr/t +w. � .� � 9.,w��_�'1-^+T� �1 _ ice'_»� � 'f► o al h ete S - _ - . - Groundwater Purchases of: 10,067 / MET Allocation : MET Usage : Available AF : 8,072 AF 6,467 AF 1 ., 605 AF $0 in Allocation Penalties Backup Material Distributed Less Than 72 Hours Prior to the Meeting Mandated Conservation - Effects on Debt Coverage , w ter. r .z >. ,��;• - --'_� wow =� a - uire Coverage Ratio -- FYI 5- 1 b : $2, 721 - 36% Cut, No changes to Rates = (87 - 36% Cut, 40% on Base Fee = 37.03% - 36% Cut, 55% on Base Fee = 138.90r Backup Material Distributed Less Than 72 Hours Prior to the Meeting Debt Covenant Default Consequences two n L I_ _ - 1'---- - - Entirety of Principal & Interest Due mmediately - $2. 1 M 2008 COP - $ 1 .2M Tax Revenue - $2. 7M Debt Service Reserve k_ Backup Material Distributed Less Than 72 Hours Prior to the Meeting Mandated Conservation - Effects on Revenue Loss 81 t D errrea y � • .�Ue - 36% Cut, No changes to Rates = ($4 - 36% Cut, 40% on Base Fee = ( $ 1 - 36% Cut, 55% on Base Fee = $ 1 . Backup Material Distributed Less Than 72 Hours Prior to the Meeting Budget Summary (Water & Sewer) &Dprpv o &a st yam: Bud ,.b :- {_End (FY 144X"-%, (FlR4i5) Total Operating Revenue Total Non-Operating Revenue Total Revenue 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) Proposed $31,025,713 $29,711,895 $29,253,983 MR $1,929,167 $2,213,175 $2,045,200 $32,954,880 $14,928,972 $8,509,812 $4,389,840 $31,925,069 $13,850,950 $7,957,903 $3,924,628 $31,299,183 $11,747,067 $8,817,107 $4,850,724 $27,828,624 $25,733,482 $25,414,898 $1,852,793 $1,725,692 $1,677,685 $29,681,417 $27,459,174 $27,092,583 $3,273,463 $4,465,895 $4,206,600 $7,337,500 $7,354,700 $7,350,000 $0 $80,212 $0 ($4,064,037) ($2,808,593) ($3,143,400) 36% Reduction in Consumption, 15% Allocation, 55% of Op. Expenses on Base Fee • ($3. 18 Backup Material Distributed Less Than 72 Hours Prior to the Meeting FY 15/16 Expenses Key Factors (Budget-to - Budget) *pet 00* Total Variable Water Cost Decrease - Includes MW D, OCW D, Power & Pumping - Based on 36% Conservation from CY 2013 • $461 ,000 -- Supplies & Services Net Increase - $159,000 in Various Expenses-- Eng. Water Model, Great F Maintenance, Bank Fees, Landscape Contractor, etc. - $136,000 in Material Expenses-- Replacement Water MetE YL Sewer Transfer Agreement - $240,000 in Maintenance Expenses-- City of YL Sewer Trar Agreement - $68,000 in Travel & Conference Expenses - ($67,000) 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 Variable Charge Base Fee TOTAL Backup Material Distributed Less Than 72 Hours Prior to the Meeting Base Fee Increase (55% of Operating Expenses) $67.50 $67.50 $67.50 $67.50 $67.50 $16.77 $84.27 $43.68 $111 . 18 $45.86 $113.36 $48.16 $119.66 • Assumes 25 units @$2.70 with a 1 inch Meter • 5% Increase in Operating Expenses per Year $50.57 $ 118.07 $67.50 -- --k $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $23.0 Walnut Valley WD Backup Material Distributed Less Than 72 Hours Prior to the Meeting Local Agency Comparison - Base Fee Mesa WD rc h Meier, FY, �&l b - - $32.21 ' Serrano WD Laguna Beach CWD $40.40 Golden State WC YLWD South Coast Eas WD YLWD @ 55% of Operating Expenses r Y $180.00 $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 - Average Monthly Bill - _ - nch-Me 5.5 11ts/Mo� ; + ti Backup Material Distributed Less Than 72 Hours Prior to the Meeting Other Revenue Recovery Options �r.�� ... ��►� n �` A ddi,ti • Drought Rates/Surcharges • Drought Fees/Fines Backup Material Distributed Less Than 72 Hours Prior to the Meeting Res 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 $3.4M $1 .0M $2. 1 M $2.7M $200,000 Retiree Payout of $186,000 Vacation/Sick Time $26.9M $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 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