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Home My WebLink About2015-07-16 - Board of Directors Meeting Agenda Packet Yorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, July 16, 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 Prop 218 Notice (Draft notice to be provided at the meeting.) 6. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board discussions are needed prior to formal Board action. 6.1. Rate Study File and Receive Recommendation. That the Board of Directors receive and file the 2015 Water and Sewer Rate Study. 7. ADJOURNMENT 7.1. The next Regular Board of Directors Meeting will be held Thursday, July 23, 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: July 16, 2015 Subject: Draft Prop 218 Notice (Draft notice to be provided at the meeting.) ATTACHMENTS: Description: Type: Backup Material Distributed Less Than 72 Hours Prior to Draft Prop 218 Notice.pdf Backup Material the Meeting Backup Material Distributed Less Than 72 Hours Prior to the Meeting Yorba Linda Water District PROPOSED WATER AND SEWER RATE INCREASE NOTICE IS HEREBY GIVEN that Thursday, September 17, 2015, at 6:30 p.m. a public hearing will be held at the District Administrative Headquarters, 1717 E. Miraloma Avenue, Placentia, CA 92870 to consider a proposed increase in water and sewer rates. Proposed increases will be effective October 1,2015. EXPLANATION OF WATER RATE INCREASES adjustments in FY 15/16, FY 16/17, FY 17/18, FY 18/19 and FY The Yorba Linda Water District (District) levies a rate for water 19/20. service provided to its customer connections. A customer connection's total water rate has two components: 1) the Monthly Proposed Water Rates Base Fee and 2) the Water Use Charge. This rate reflects the cost to the District for providing water service to customer connections, including the cost of: (1) operations and maintenance; (2) repair, rehabilitation and replacement of water system; and (3)water supply Effective Dates 7/1/2015 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 costs - based on charges for imported water costs from the Monthly Base Fee Metropolitan Water District of Southern California; groundwater 5/8 $10.06 $26.29 $29.37 $32.73 $36.39 $40.36 related costs from the Orange County Water District;energy costs for 3/4 $10.06 $26.29 $29.37 $32.73 $36.39 $40.36 the District's wells, pump stations; and annual water system loss. 1 $16.77 $41.57 $46.44 $51.76 $57.54 $63.81 11/2 $33.54 $79.77 $89.12 $99.32 $110.41 $122.44 Rate adjustments are being proposed due to the increasing costs of 2 $53.66 $125.61 $140.33 $156.39 $173.85 $192.78 operating, maintaining, and replacing the District's water system and 3 $117.37 $270.77 $302.49 $337.09 $374.72 $415.53 the increasing costs of purchasing and delivering safe and reliable -1 _$211.26 $484.69 $541.46 $603.39 $670.74 $743.78 water service to the community. 6 $469.47 $1,225.77$1,369.34 $1,525.96$1,696.28$1,880.98 PF 10 $?W7 $3,212.17$3,588.39 $3,998.81$4,445.12$4,929.13 In 2007, the District Board of Directors approved a long-term Capital water Use Charge A& TBD based on actual pass-through water Improvement Plan (CIP) with a goal of being able to deliver less Uniform Rate $2.70/hcf $2.70/hcf supply costs expensive groundwater to our entire service area. This would Note:Based on the number of customer connections in the District,the proposed Monthly Base provide flexibility to switch between water sources, maximize the use Fee may change slightly. of lower-cost groundwater, and add facilities to be able to deliver either source of water to all areas of the District now and in the future. As this long-term plan comes to a close, proper funding of EXPLANATION OF SEWER RATE INCREASES these capital improvement projects through this rate increase will The Yorba Linda Water District (District) levies a rate for sewer allow the CIP to be completed. service provided to its customer connections on a basis of customer class. A residential class connection sewer rate is a flat, fixed The District's current fixed costs greatly outweigh the revenues monthly service charge. A commercial class connection sewer rate collected on the Monthly Service Charge. This creates financial has two components: 1)the fixed monthly service charge and 2) the volatility when water demand fluctuates due to economic or weather variable volumetric charge based on the estimated amount of water conditions, such as the current drought. In response to the statewide returned to the sewer ("flow'). There is no sewer rate charge for drought declaration by Governor Brown, the District has declared a landscape customer connections. This rate reflects the cost to the Stage 3 water shortage level and has been mandated to reduce 36% District for providing sewer service to customer connections, of water use District-wide. The proposed rates reflect the cost of including the cost of: (1) operations and maintenance and (2) repair, service and provide an enhancement of revenue stability for covering rehabilitation and replacement of sewer system. Rate adjustments fixed costs. The District is proposing an increase in the revenue it are being proposed due to the increasing costs of operating, receives from its customer connections over the next 5 years. maintaining, and replacing the District's sewer system and to comply The District's projected revenue from its water rates for FY 15/16 with regulations governing the treatment and disposal of wastewater (effective October 1, 2015), FY 16/17, FY 17/18, FY 18/19 and FY to the community over the next five years. The District is also opting 19/20 is set forth in the draft YLWD Water and Sewer Rate Study to consolidate the eight current sewer customer classes into two: 2015. The District proposes an increase in the projected revenue of residential and commercial. 36% in FY 15/16, 5% in FY 16/17, 5% in FY 17/18, 5% in FY 18/19 and 5% in FY 19/20. The District has decided to collect the The District's projected revenue from its sewer rates for FY 15/16 increased revenue on the Monthly Base Fee. Each customer (effective October 1, 2015), FY 16/17, FY 17/18, FY 18/19 and FY connection's proportional amount of the revenue increase is 19/20 is set forth in the draft YLWD Water and Sewer Rate Study dependent on the size of the meter. The formula used to determine 2015. The District proposes an increase in the projected revenue of the amount is the industry standard reflected in the AWWA M-1 7% in FY 15/16, 8% in FY 16/17, 8% in FY 17/18, 8% in FY 18/19 Manual, and is located in the draft YLWD 2015 Water and Sewer and 8%in FY 19/20.The District has decided to collect the increased Rate Study. revenue on the Monthly Service Charge. Finally, the projected water supply pass-through costs for FY 2015/16 will not require an additional increase in charges on the consumption rate. The pass-through adjustments for FY 16/17, FY 17/18, FY 18/19 and FY 19/20 will be calculated at the end of each preceding fiscal year. The proposed rate increase includes the Backup Material Distributed Less Than 72 Hours Prior to the Meeting Proposed Sewer Rates IF FYIS/16 To view the draft YLWD 2015 Water and Sewer Rate Study, please Effective Current Oct.1, visit the District's website at www.ylwd.com. Sewer Rate Structure FY 15/16 2015 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Effective Dates 7/1/2015 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 Monthly Sewer Service Charge SFR-District $5.50 $5.94 $6.42 $6.94 $7.50 $8.10 MFR-District $3.85 $5.58 $6.03 $6.52 $7.05 $7.62 SFR-YLC $5.50 $5.94 $6.42 $6.94 $7.50 $8.10 MFR-YLC $5.50 $5.58 $6.03 $6.52 $7.05 $7.62 C11-Regular $5.50 $5.94 $6.42 $6.94 $7.50 $8.10 CII-YLC Varied * $5.94 $6.42 $6.94 $7.50 $8.10 CII Volumetric Rates C11-Regular $0.46/hcf $0.36/hcf $0.40/hcf $0.44/hcf $0.48/hcf $0.52/hcf CII-YLC $0.176/hcf $0.36/hcf $0.40/hcf $0.44/hcf $0.48/hcf $0.52/hcf EXAMPLE CHARGES OF PROPOSED RATES The average residential customer connection has a 1 inch meter and uses approximately 16 units per month, based on the mandated 36% reduction in water use. An example of the current and proposed water bill for that typical customer connection is below. Over 93%of YLWD water customer connections will reflect these or lower Monthly Base Fee charges. Actual water charges will vary based on the amount of water consumed. Water Use Charge $43.20 $43.20 $43.20* $43.20* $43.20* $43.20' Monthly Base Fee + $16.77+ $41.57+ $46.44 + $51.76 + $57.54 + $63.81 Monthly Sewer Service+ $5.50+ $5.94+ $6.42 + $6.94 + $7.50 + $8.10 Total Current Charge! $65.47 $90.71 $96.06 $101.90 $108.24 $115.11 *Estimated Pass-through Costs,Actual Costs to he Determined in subsequent years. Revenues derived from the proposed rates do not exceed the funds required to provide the property related services nor will the revenue be used for any purpose other than that for which the rates are imposed. The amount of the proposed rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel-, and no rate will be imposed for a service unless that service is actually used by,or immediately available to,the owner of the property in question. PROTEST OF PROPOSED RATE INCREASES Written protests must be received by 6:30 p.m. the day of the hearing. If mailed, they must be sent to the District Secretary, 1717 E. Miraloma Avenue, Placentia, CA 92870. Each written protest must identify the affected property (by assessor's parcel number or street address), reference the Proposed Water and Sewer Rate Increase and include the signature of the property owner or tenant, as applicable. Due to the inability to verify the authenticity of each individual protest, protests received by telephone, electronic mail (e- mail), or via social media sites, including, but not limited to Facebook or Twitter will NOT be accepted. All interested parties are invited to attend the public hearing and present written protests and/or oral comments on the proposed rate increase. Oral comments made at the public hearing will qualify as formal protests of the rate increase when accompanied by a written protest setting forth the required information. If written protests are submitted by a majority of the affected property owners,the proposed increase will not be imposed. If you have any questions regarding the proposed increase or have questions on how to submit a written protest, please contact the District Secretary at 714-701-3021. ITEM NO. 6.1 AGENDA REPORT Meeting Date: July 16, 2015 To: Board of Directors From: Marc Marcantonio, General Manager Presented By: Delia Lugo, Finance Manager Prepared By: Delia Lugo, Finance Manager Subject: Rate Study File and Receive SUMMARY: Attached for the Board's review and discussion is the 2015 Water and Sewer Rate Study. The study provides the necessary statistical and financial data that is required to generate the Administrative Record and Prop 218 Notice in support of a proposed future water and sewer rate increase. STAFF RECOMMENDATION: That the Board of Directors receive and file the 2015 Water and Sewer Rate Study. PRIOR RELEVANT BOARD ACTION(S): At the Board meeting held on July 9, 2015, Staff, along with Raftelis Financial Consultants Inc., provided the Board with an overview of the proposed rates, including the justification and rationale in support of Staff's recommendation. ATTACHMENTS: Name: Description: Type: YLWD Board Workshop Jul 16 2015.pdf 2015 Water and Sewer Rate Study Backup Material Approved by the Board of Directors of the Yorba Linda Water District 7/16/2015 MB/PH 5-0 2015 Water and Sewer Rate Study Yorba Linda Water District RdFTEL15 BOARD MEETING JULY 16, 2015 PRESENTED BY: DISTRICT STAFF ® Yorba Linda Water District Agenda July 9 2015 Board Meeting Recaps Financial Plan Development Water Sewer Proposed Rates and Customer Impacts Water Sewer Rate Survey ® Yorba Linda Water District Jul 9 2015 Board Meeting Recaps 1 . Discussed Financial Policy and Pass-through Water Supply Costs Discussed Financial Plan for Water and Sewer Enterprises Discussed Proposed Water and Sewer Rates along with Customer Impact Analysis Discussed about Collecting Future Revenue Increases from the Fixed Charges and Pass- through Water Supply Costs on Commodity Rates ® Yorba Linda Water District Financial Plan Development WAT E R SEWER ® Yorba Linda Water District ) mmended Financial Policy Wate;:I" Reserve Policy Operations 25% of O&M Rate Stabilization 15% of Commodity Revenues Emergency $10M for major repair of critical assets Capital 2% of asset value by replacement Replacement COP/ Debt Service Employee Benefit Liability (EBL) costs 100% of annual total debt service + $2.147M 2008 COP Restricted Based on District's projections � Sewer 25% of O&M N/A $3M for major repair of critical assets 2% of asset value by replacement costs 100% of annual total debt service Based on District's projections Debt Coverage 1.25x for Good standing per S&P 1.25x for Good standing per S&P rating criteria rating criteria ® Yorba Linda Water District Water Financial Plan Drought Sales in FY 2016 = 13,298 AF (36% of 2013 Sales) 20,000 AF 15,000 AF 15,000 AF 14,000 AF 12,000 AF 10,000 AF 5,000 AF 5,000 AF 4,000 AF 2,000 AF OAF Projected Sales FY 2015 I FY 2016 I FY 2017 I FY 2015 I FY 2019 I FY 2020 J ■ Draught Sales l 18,752 AF I 13,298 AF I 14,551 AF I 15,623 AF I 16,664 AF I 17,706 AF Proposed Water Financial Plan Drought Sales with Pass-through Water Supply Costs Water Revenue Adjustments& Coverage Chant 40.0% 36.0% 600% 35.0% -------- 500% 30.0% _ ; 25.0% _ �` 400% 20.0%4 300% 15.0% 200% 10.0% 5.0% 0 0.0 100 ° 0.0% 0% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Coverage Rev Adj Rev Adj *Coverage Ratio —Required Coverage-125% • Alert Coverage Millions Total Water Reserve Ending Balances $40 $35 $30 $25 $20 $15 $10 $5 $0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 I J I Fnding Balances —Minimum 0 Alert Balances ® Yorba Linda Water District Water Revenue Adjustments and Debt Coverage ➢ Blue bars — Proposed Revenue Adjustment (left axis) (36% in FY 2016 and 5% in FY 2017 — FY 2019) ➢ Red line — Target debt coverage 125% ➢ Dark green line — Projected debt coverage (right axis) ➢ Red dot — Alert coverage when falling below target Projected Reserve Balances ➢ Red bars — Projected ending reserve balances ➢ Green line — target balances for Water reserves ➢ Red dot — alert balances when ending balances fall below target levels Proposed Water Financial Plan Drought Sales with Pass-through Water Supply Costs Water Operating Financial Plan N $7 o $6 $5 $4 $3 $2 $1 $o FY 2015 Water CIP and Funding Sources FY 2016 FY 2017 FY 2018 ■Debt Funding ■PayGo FY 2019 Operating Financial Plan 1 ➢ Lines — revenues I ➢ Red — current rates ➢ Green — proposed rates ➢ Stacked bars - expenses I ® Yorba Linda Water District Water CIP & Funding Sources ➢ Green bar — PAYGO ➢ Purple bar — New Debt (by Line of Credit (LOC)) Proposed Water Financial Drought Sales with Pass-through Water Supply Costs Water Revenue Adjustments&Coverage Chart 40.010 36.04o vw/n 35.0% 500% 30.0% 25.0% 400% 20.0% 300% 15.0% 200% 10.0% — 0 Doe 60% 5.0% 0.0% 100% 0.0% � 0% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Coverage Rjev Adj IRev Adj *Coverage Ratio —Required Coverage-125% • Alert Coverage Millions $14U $35 $30 $25 $20 $15 $10 $5 $0 Total Water Reserve Ending Balances FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Ending Balances —Minimum 0 Alert Balances $60 c $40 $20 $0 ® Yorba Linda WatCT District Plan Water Operating Financial Plan FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 DYLWD O&M Water Cost D Debt Service&LOC Principal O Non-Operating Res Funding —Current Rev — Proposed Rev Water CIP and Funding Sources Ln $7 C $6 $5 $4 $3 — $2 $1 $a FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 I ■Debt Funding ■PaYGo Proposed Sewer Financial Plan Sewer Revenue Adjustments& Coverage Chart 10.0% 8.0% 8.096 8.0% 8.(Y% 6.0% 4.0% 2.0% . 0.0% FY 2016 FY 2017 FY 2018 FY 2019 Rev Adj $7.0 c $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 �Rate Adjustments TarLet Coverave 125% 14V]\ 120% 100% 80% 60% 40% 20% 0% FY 2020 Coverage f —Debt Coverage • Alert Coverage Total Sewer Reserve Ending Balances FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Ending Balances Target Balances o Alert Balances ® Yorba Linda Water District Sewer Revenue Adjustments and Debt Coverage ➢ Blue bars — Proposed Revenue Adjustment (left axis) (8 percent per year) ➢ Red line — Target debt coverage 125% ➢ Dark green line — Projected debt coverage (right axis) (No proposed debt) ➢ Red dot — Alert coverage when falling below target Projected Reserve Balances ➢ Red bars — Projected ending reserve balances ➢ Green line — target balances for Sewer reserves ➢ Red dot — alert balances when ending balances fall below target levels Jul 16, 2015 2015 WATER & SEWER RATE STUDY - BOARD MEETING 10 ® Yorba Linda Water District Proposed Sewer Financial Plan c $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Sewer Operating Financial Plan T � FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 �Salary Related Expenses Other Expenses �Debt Service �Reserve Funding Current Revenues Proposed Revenues y $0.8 o $0.7 $0.6 $0.5 $0.4 $0.3 $0.2 $0.1 $0.0 Sewer CIP and Funding Sources FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 ■Debt/Loan Funded ■PAYGO 0 Total CIP I Operating Financial Plan ➢ Lines — revenues ➢ Red — current rates ➢ Green — proposed rates ➢ Stacked bars - expenses Sewer CIP & Funding Sources ➢ Green bar — PAYGO ➢ Purple bar — New Debt (None) ➢ Blue dot — Total CIP (inflated by CCI) ® Yorba Linda Water District Proposed Sewer Financial Plan Sewer Revenue Adjustments& Coverage Chart 10.0% FY 2018 FY 2019 FY 2020 140% Ending Balances 120% 8.0% Alert Balances 8.0% 8.0% 8.0% 100% 6.0% 80% 4.0% � 60% 40% 2.0% 20% 0.0% 0% FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Rev Adj Coverage Rate Adjustments -Debt Coverage Target Coverage 125% • Alert Coverage ,, $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Total Sewer Reserve Ending Balances FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Ending Balances Target Balances o Alert Balances $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Sewer Operating Financial Plan Salary Related Expenses Other Expenses �Reserve Funding -Current Revenues FY 2020 �Debt Service PrnnnCPH RPVPn11PG -IMMENEW- �- Sewer CIP and Funding Sources 0 $0.8 o $0.7 $0.6 $0.5 $0.4 $0.3 $0.2 $0.1 $0.0 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 ■Deht/Loan Funded ■PAYGO •Total CIP ® Yorba Linda Water District Proposed Rates and Customer Ire . pacts WAT E R SEWER ® Yorba Linda Water District Water Rate Components er 5ize ;F of ivieters tsiiiing & Lb capacity Nroposea • $22.92 / mo $26.29 • 3/4 1 11/2 2 3 4 6 8 10 Commodity Rates 5,617 $3.37/ mo 17,271 $3.37/ mo 573 $3.37/ mo 1,138 $3.37/ mo 6 $3.37/ mo Cl Jul G C C $22.92 / mo $26.29 / mo $38.20 / mo $41.57 / mo $76.40 / mo $79.77 / mo $122.24 / mo $125.61 / mo $267.40 / mo $270.77 / mo $3.37/ mo $481.32 / mo $484.69 / mo $3.37/ mo $1,222.40 / mo $1,225.77 / mo $3.37/ mo $2,139.20 / mo $2,142.57 / MO $3.37/ mo $3,208.80 / mo $3,212.17 / MO ',,ower Delivery Proposed $0.25 $0.60 $2.70 / hcf Proposed Water Rates 5/8 $10.06 / mo 3/4 $10.06 / mo 1 $16.77 / mo 11/2 $33.54 / mo 2 $53.66 / mo 3 $117.37 / mo 4 6 8 10 Commodity Rates $26.29 / mo $16.23 161% $26.29 / mo $16.23 161% $41.57 / mo $24.80 148% $79.77 / mo $46.23 138% $125.61 / mo $71.95 134% $270.77 / mo $153.40 131% $211.26 / mo $484.69 / mo $273.43 129% $469.47 / mo $1,225.77 / mo $756.30 161% $804.80 / mo $2,142.57 / mo $1,337.77 166% $1,274.27 / mo $3,212.17 / mo $1,937.90 152% $2.70 / hcf ® Yorba Linda Water District Water SFR Customer Impacts $Zoo $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 ■ Current ■ Proposed Impacts % Impact's 10 hcf $43.77 $68.57 $24.50 56.7% Sample SFR Monthly Water Bills 1-inch meter at different usage levels 20 hcf $70.77 $95.57 $24.50 35.05 25 hcf $84.27 $109.07 $24.50 29.4% 40 hcf $124.77 $149.57 $24.50 19.9% 50 hcf $151.77 $176.57 $24.80 16.3% ® Yorba Linda Water District Proposed Sewer Rates Sewer Fixed Charges SFR-District Flat MFR-District Flat Flat Flat Flat + Vol SFR-YLC MFR-YLC CII-Regular CII-YLC Volumetric Rates Flat + Vol ® Yorba Linda Water District $2.54 $3.40 $5.94 $5.50 7 unit allowance $2.18 $3.40 $5.58 $3.85 6 unit allowance $2.54 $3.40 $5.94 $5.50 7 unit allowance $2.18 $3.40 $5.58 $5.50 6 unit allowance $2.54 $3.40 $5.94 $5.50 7 unit allowance $2.54 $3.40 $5.94 Varied by 7 unit allowance meter size $0.36 / hcf Estimated retui factor is 83 SFR Customer Impacts Water & Sewer Combined Bills $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 ■ Cuirre nt W+S ■ Proposed W+S Impacts % Impacts Sample SFR Monthly Water and Sever Bills 1-inch meter at different usage levels 10 hcf $49.27 $74.51 $25.24 51.2% 20 hcf $75.27 $101.51 $25.24 33.1% 25 hcf $89.77 $115.01 $25.24 25.1% 40 hcf $130.27 $155.51 $25.24 19.4% 50 hcf $157.27 $182.51 $25.24 16.0% ® Yorba Linda Water District Proposed 5 -Year Water Rates 5/8 3/4 1 11/2 2 3 4 0 $10.06 $10.06 $16.77 $33.54 $53.66 $117.37 $211.26 $469.47 8 $804.80 10 $1,274.27 $26.29 $29.37 $32.73 $26.29 $29.37 $32.73 $41.57 $46.44 $51.76 $79.77 $89.12 $99.32 $125.61 $140.33 $156.39 $36.39 $36.39 $57.54 $110.41 $173.85 $270.77 $302.49 $337.09 $374.72 $484.69 $541.46 $603.39 $670.74 $1,225.77 $1,369.34 $1,525.96 $1,696.28 $2,142.57 $3,212.17 $2,393.52 $2,667.28 $3,588.39 $3,998.81 $2,964.98 $4,445.12 ® Yorba Linda Water District $40.36 $40.36 $63.81 $122.44 $192.78 $415.53 $743.78 $1,880.98 $3,287.83 $4,929.13 Commodity $2 $2.70 / hcf $2.70/ hcf $2.70/ hcf $2.70/ hcf Rates* .70 / hcf $2.70/ hcf +TBD Pass-through +TBD Pass-through +TBD Pass-through +TBD Pass-through *Pass-through Water Supply Costs will be calculated annually based on actual increases on unit water supply costs incurred by the District -Jul 16, 2015 2015 WATER & SEWER RATE STUDY - BOARD MEETING Proposed 5 -Year Sewer Rates Sewer Fixed Charges ($/month/Dwelling Unit) �SFR-District MFR-District SFR-YLC ® Yorba Linda Water District $5.50 $5.94 $6.42 $6.94 $7.50 $8.10 7 unit allowance $3.85 $5.58 $6.03 $6.52 $7.05 $7.62 6 unit allowance $5.50 $5.94 $6.42 $6.94 $7.50 $8.10 7 unit allowance MFR-YLC $5.50 $5.58 $6.03 $6.52 $7.05 $7.62 6 unit allowance CII-Regular CII-YLC CII Volumetric Rates CII-Regular CII-YLC $5.50 $5.94 $6.42 $6.94 $7.50 $8.10 7 unit allowance Varied by $5.94 $6.42 $6.94 $7.50 $8.10 7 unit allowance meter size Sewer Return Factor=83° $0.46 / hcf $0.36 / hcf $0.40/hcf $0.44/hcf $0.48/hcf $0.52/hcf Above 7 unit allowanc $0.176 / hcf $0.36 / hcf $0.40/hcf $0.44/hcf $0.48/hcf $0.52/hcf Above 7 unit allowance ® Yorba Linda Water District Rate Survey ® Yorba Linda Water District Rate Survey Next Steps Financial Plan Development • Evaluation of CIP and financing options • Cash flow analysis for financial sufficiency O 0 Cost of Service & Rate Design • Cost Allocations • Rate Design • Rate Calculations • Customer Impact Analyses ® Yorba Linda Water District Final Rate Adoption • Report • Prop 218 Notice • Public Hearing