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Home My WebLink About2016-03-17 - Board of Directors Meeting Agenda Packet orba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Thursday, March 17, 2016, 3:00 PM 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. Staff Analysis of Assessed Administrative Penalties (Ordinance No. 15-01) 5.2. Status of Refunding Revenue Bonds Series 2016A 6. ADJOURNMENT 6.1. The next Regular Board of Directors Meeting will be held Thursday, March 24, 2016 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 17, 2016 Dept: Finance Subject: Staff Analysis of Assessed Administrative Penalties (Ordinance No. 15-01) ATTACHMENTS: Name: Description: Type: Backup Material Distributed Less Than 24 Hours Prior to Presentation.pdf Backup Material the Meeting go Backup Material Distributed Less Than 24 Hours Prior to the Meeting Yorba Linda Water District Administrative Penalty Review Presented By: Marc Marcantonio, General Manager Delia Lugo, Finance Manager Cindy Botts, Management Analyst Marc Backup Material Distributed Less Than 24 Hours Prior to the Meeting History of Penalty Implementation • SWRCB Mandated 36% Conservation -,,,D istrictwide Calendar-Yec Mj3 ==-- ._ • Governor's Ex ive Order B =29 -15 Ma 67a ted Pricing Mechanisms to Encourage Conservation - Rate Structures - Surcharges — Fees — Penalties • Penalties Effective June 1., 2015 • Board Requested Options for Altering Pena at February 16, 2016 meeting Backup Material Distributed Less Than 24 Hours Prior to the Meeting History of Penalty Implementation • Original C ulation. r__ ',Strut :ure e 4err-Fe b MI • Residential: 25 units x 36% = 16 units + 2 extrc = 18 units- No Penalty • Commercial: 72 units x 36% = 46 units + 4 ext = 50 units- No Penalty • Irrigation: 162 units x 36% = 104 units + 1 1 exti = 115 units- No Penalty Backup Material Distributed Less Than 24 Hours Prior to the Meeting Current Administrative Penalty Structure Block 1 gi oe" Block 4 Block 5 Block 6 Residential .__,4 Pq uiv. Family Size 'f�;�962 -d t��T �19 -29'_ s - Monthly 10.00 �� 22,440 ` 13~6 _�, 30 -49 Uni-�s a y $ 20.00 ,400 50 -74 Units - Monthly $ 40.00 56,100 34.0 75 -99 Units - Monthly $ 80.00 74,800 45.3 100+ Units - Monthly $ 160.00 74,800 45.3 Commercial Penalty # of Gallons Equiv. Family Size Block 1 1 -50 Units - Monthly $ - 38,148 23.1 Block 2 51 -75 Units - Monthly $ 25.00 56,848 34.5 Block 3 76 -100 Units - Monthly $ 50.00 74,800 45.3 Block 4 100 -150 Units - Monthly $ 100.00 112,948 68.5 Block 5 151 -200 Units - Monthly $ 200.00 149,600 90.7 Block 6 200+ Units - Monthly $ 400.00 149,600 90.7 Irrigation Penalty # of Gallons Equiv. Family Size Block 1 1 -115 Units - Monthly $ - 86,768 52.6 Block 2 116 -200 Units - Monthly $ 65.00 150,348 91.1 Block 3 201 -300 Units - Monthly $ 130.00 225,148 136.5 Block 4 301 -400 Units - Monthly $ 260.00 299,948 181.8 Block 5 401 -500 Units - Monthly $ 520.00 374,000 226.7 Block 6 500+ Units - Monthly $1,000.00 374,000 226.7 Equiv. Family Size = # of people with indoor only usage Backup Material Distributed Less Than 24 Hours Prior to the Meeting Residential Penalty Analysis 20,000 16,000 14,000 12,000 1 0,000 8,000 6,000 4,000 2,000 0 Blocks 1 -3 Only, Jun -Jan Usa - Block 1 Increases Over Tir ase Res Penalty B 1 Res Penalty B 2 Res Per July -36 day Aug - 28 day Sept - 36 day * Oct - 28 day ■ Nov - 28 Day ■ Dec - 36 Day* Jan - 28 Da Backup Material Distributed Less Than 24 Hours Prior to the Meeting Residential Penalty Analysis Res Penalty B 1 Res Penalty B 2 Res Penalty B 3 Res Penalty B 4 Res Penalty B 5 Res Penalty B 6 two - i Avg Assessed Penalties Jun - Feb 70.9 16.9% 8.8% 2.4% 0.6% 0.4% Avg Assessed Penalties Nov - Feb 79.1% 13.0% 5.8% 1.4% 0.4% 0.3% Avg Monthly Revenue $128,603 $87,803 LCE 625 525 425 325 225 125 25 -75 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Commercial Penalty Analysis Comm Penalty B 1 Blocks 1 -3 Only, Jun -Jan Usage - Block 1 Increases Over Time - Blocks 2 & 3 Decrease Comm Penalty B 2 Comm Penalty B 3 July -36 day Aug - 28 day Sept - 36 day * Oct - 28 day ■ Nov - 28 Day ■ Dec - 36 Day* Jan - 28 Day ■ Feb - 28 day Backup Material Distributed Less Than 24 Hours Prior to the Meeting Commercial Penalty Analysis rte- �F.' • � Avg Assessed Avg Assess�� Penalties Penalties Jun - Feb Corn Penalty B 1 76.6% Corn Penalty B 2 6.3% Corn Penalty B 3 4.0% Corn Penalty B 4 4.9% Corn Penalty B 5 2.6% Corn Penalty B 6 5.6% Nov - Feb 78.7% 6.1% 3.7% 4.9% 2.5% 4.1% Avg Monthly Revenue $30,316 $24,813 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Irrigation Penalty Analysis -950 850 750 650 550 450 350 250 nr•. r /rte\ - _ _ _ _ ..,.r _ - - -�%- Blocks 1 -3 Only, Jun -Jan Usage - Block 1 Increases Over Time - Blocks 2 & 3 Decrease 150 50 -50 Irrigation Penalty B 1 Irrigation Penalty B 2 Irrigation Penalty B - July -36 day Aug - 28 day Sept - 36 day * Oct - 28 day ■ Nov - 28 Day ■ Dec - 36 Day* Jan - 28 Day ■ Feb - Backup Material Distributed Less Than 24 Hours Prior to the Meeting MEN Irrigation Penalty Analysis Avg Assessed Avg Assessc Penalties Penalties Jun - Feb Nov - Feb Irrigation Penalty B 1 73.4% 81.3% Irrigation Penalty B 2 14.6% 11.1% Irrigation Penalty B 3 6.8% 5.0% Irrigation Penalty B 4 2.7% 1.4% Irrigation Penalty B 5 1.3% 0.7% Irrigation Penalty B 6 1.1% 0.5% Avg Monthly Revenue $40,874 $24,163 A Backup Material Distributed Less Than 24 Hours Prior to the Meeting Average Monthly Usage- Changes in Behavior Residential Commercial Irrigation Usage listed in Units (748 gallons /unit) Backup Material Distributed Less Than 24 Hours Prior to the Meeting SWRCB Changes- Extension & Credits a- • Extension of Mandates until Oct 31.. rz •Credits of 8% for IPR &Growth - 36% cumulative, now 28% Jun 2015- Oc 0 ik A- Backup Material Distributed Less Than 24 Hours Prior to the Meeting REVISED Calculation for Penalty Structure • Average Usage Jun - Feb ,201 Z wj-. 2 7 reduction - Residential: 25 units x 28% = 18 units + 2�extra = 20 units- No Penalty- (18 previously) - Commercial: 72 units x 28% = 52 units + 4 extra = 56 units- No Penalty- (50 previously) — Irrigation: 162 units x 28% _ 1 17 units + 1 1 extra = 128 units- No Penalty- (115 previously) Backup Material Distributed Less Than 24 Hours Prior to the Meeting Penalty Revision Options • Option 1: S 1.1 P _�� k Ins • Option 2: Block 2, No Penalty — Allows up to 30 units (Res) with no penalty — Allows to up to 76 units no penalty (Com) with no penalty • Option 3: Block 2 & 3, No Penalty — Allows up to 50 units (Res) with no penalty — Allows up to 100 units (Com) with no penalty Note: Due to SWRCB focus on outdoor irrigation 40 40 irrigation blocks NOT included in Options Backup Material Distributed Less Than 24 Hours Prior to the Meeting Option 1- Adjust All Penalties 1 Block Reduced 00 ($29,742.50) ($26,550.00) ($13,230.00) ($7,880.00) ($10,400.00) ($87,802.50) Applied $0.00 $0.00 $13,275.00 $6,615.00 $3,940.00 $5,200.00 $29,030.00 ($58.,772.50) WWI \ Reduced $0.00 ($1,287.50) ($1,550.00) ($4,125.00) ($4,250.00) ($13,600.00) ($24,812.50) Applied $0.00 $0.00 $775.00 $2,062.50 $2,125.00 $6,800.00 $11,762.50 ($13,050.00) Net Reduction in Applied Penalties: $71,822-50 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Option 2- Block 2, No Penalty _ s i \ Cohimercl Reduced Applied Reduced Appliei $0.00 $0.00 ($29,742.50) ($1,287.50) ($29,742.50) ($29,742.50) ($1,287.50) ($1,287. Net Reduction in Applied Penalties: $31,0, Backup Material Distributed Less Than 24 Hours Prior to the Meeting Option 3- Blocks 2 & 3, No Penalty _ Reduced $0.00 ($29,742.50) ($26,550.00) ($56,292.50) Applied ($56,292.50) Reduced $0.00 ($1,287.50) ($1,550.00) ($2,837.50) Applies ($2,837 Net Reduction in Applied Penalties: $59,13C Backup Material Distributed Less Than 24 Hours Prior to the Meeting Adjustments to Ordinance 15 -01 - _ a - meets w y _ done through a NEW OrdinanCE • Would take effect beginning Mi (Cycle 1) Backup Material Distributed Less Than 24 Hours Prior to the Meeting Questions?