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Home My WebLink About2016-03-30 - Board of Directors Meeting Agenda Packet Yorba Linda Hater District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Wednesday, March 30, 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. Draft FY 2016/17 Operating Budget (Materials to be provided at the meeting.) 5.2. Potential Amendments to Ordinance No. 15-01 6. ADJOURNMENT 6.1. The next Regular Board of Directors Meeting will be held Thursday, April 14, 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 30, 2016 Subject: Draft FY 2016/17 Operating Budget (Materials to be provided at the meeting.) ATTACHMENTS: Description: Type: Backup Material Distributed Less Than 24 Hours Prior to Presentation.pdf Backup Material the Meeting Backup Material Distributed Less Than 24 Hours Prior to the Meeting Yorba Linda Water District VP Budget Workshop #1 FY 2016/17 Presented By: Marc Marcantonio, General Manager Delia Lugo, Finance Manager Kelly McCann, Senior Accountant Cindy Botts, Management Analyst Marc Backup Material Distributed Less Than 24 Hours Prior to the Meeting What Will Change for FY 2016/17? • 70% GW Available -. N c n r g, ( lb:S412- ~ • GWRS Phase 2/ Loss of Revenue/ Purchase of 55k AF of MWD water to Replenish Basin • MWDOC Rate Change- estimated (- $14K)for Retail Connection Charge • OCWD increase additional $1 -2 on RA above $412. • MWD- annual increase of 4% for FYI 6/17 & FY 17/18., 4.5% annual increase for next 8 FYs ............. Sk Import Water 1,100 $1,000 $700 $500 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Historical Water Costs ,.r Groun Uvater $267 FY 12/13 FY 13/14 FY 14/15 FY 15/16 MWD OCWD 79 FY 16/17 P: : - - '-, $415 $395 $375 $355 $335 $315 $295 $275 $255 $235 00.0 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Total Water Purchases (AF) 16,027.6 10 /11 11/12 12/13 13/14 Water Purchases ■ Anticipated Purchases 14/15 Budgeted Purchases 15/16 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Fiscal Year 2016/1 Outlook I Backup Material Distributed Less Than 24 Hours Prior to the Meeting Key Budget Assumptions Total Volume of Water Purchased 10Z �=- •_We=OA MW DOC Blended Rate Water Purchase Related Fixed Costs SW RCB Fines Estimated at $500 /day -515 days Other Operating Revenue- Penalties Excluded 17,030 A F $441 /A F $1,093/$1,; $1.58M $257,500 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Budget Summary (Water &Sewer) - `w i �' C�js- - � ti > 7leFb -• � BudgcYl(-3ft*- Fore ast ._—'- B el - _--- -- (FY 15/16) ( 6) Revenue Total Operating Revenue $30,445,658 $31,341,440 $32,120,056 Total Non - Operating Revenue $2,095,155 $2,396,641 $2,181,525 Total Revenue $32,540,813 $33,738,080 $34,301,581 Expenses Variable Water Costs $12,080,410 $10,818,693 $12,710,504 Salary - Related Expenses $8,964,218 $8,376,440 $9,135,228 Supplies & Services $7,564,117 $4,735,823 $5,076,339 Total Operating Expenses $28,608,745 $23,930,957 $26,922,071 Total Non- Operating Expenses $1,677,685 $1,728,945 $1,744,884 Total Expenses $30,286,430 $25,659,901 $28,666,955 Income Before Depreciation & Capital Contributions $2,254,384 $8,078,179 $5,634,627 Depreciation $7,350,000 $7,567,144 $7,564,952 Capital Contributions $0 $179,109 $0 Income (Loss) ($5,095,616) $690,144 ($1,930,325) Backup Material Distributed Less Than 24 Hours Prior to the Meeting Budget Summary (Water Only) 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) $12,080,410 $8,118,352 $6,576,551 $10,818,693 $7,544,947 $4,317,729 $12,710,504 $8,252,259 $4,466,667 $12,710,504 $8,252,259 $4,466,667 $26,775,313 $22,681,370 $25,429,431 $25,429,431 $1,677,685 $1,728,945 $1,744,884 $23,000 $28,452,998 $24,410,315 $27,174,315 $25,452,431 $2,245,751 $7,346,892 $5,141,701 $6,368,585 $6,003,400 $6,200,624 $6,198,432 $0 $104,605 $0 $0 ($3,757,649) $1,250,874 ($1,056,731) $6,368,585 Debt Service Obligation $ 2,716,884 Debt Service Coverage 234.41% MR Budget Forecast Budget Debt Coverage (FY 15/16) FY 15/16) FY 16/17) Ratio Revenue Water Revenue (Residential) - =1uw`1' 28 ! +- -. $12,536,171'3 -•-A � Water Revenue eveenue (Corn �cial & $1 385 979 ,�•�$1 351 329~ ` $1 6_40 235 =�'` $ 385 979 • T _ $2,782,183 ! Service Charges $9,426,652 $10,824,413 $12,865,573 $9,426,652 Other Operating Revenue $3,556,678 $2,321,449 $617,654 $3,556,678 Total Operating Revenue $28,623,519 $29,407,528 $30,161,416 $30,161,416 Total Non - Operating Revenue $2,075,230 $2,349,679 $2,154,600 $1,659,600 Total Revenue $30,698,749 $31,757,207 $32,316,016 $31,821,016 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) $12,080,410 $8,118,352 $6,576,551 $10,818,693 $7,544,947 $4,317,729 $12,710,504 $8,252,259 $4,466,667 $12,710,504 $8,252,259 $4,466,667 $26,775,313 $22,681,370 $25,429,431 $25,429,431 $1,677,685 $1,728,945 $1,744,884 $23,000 $28,452,998 $24,410,315 $27,174,315 $25,452,431 $2,245,751 $7,346,892 $5,141,701 $6,368,585 $6,003,400 $6,200,624 $6,198,432 $0 $104,605 $0 $0 ($3,757,649) $1,250,874 ($1,056,731) $6,368,585 Debt Service Obligation $ 2,716,884 Debt Service Coverage 234.41% MR Backup Material Distributed Less Than 24 Hours Prior to the Meeting Budget Summary (Water Only)- Rate Rollback Budget Forecast Budget Debt Coverage (FY 15/16) ` (FY 15/16) (FY 16/17) Ratio Revenue Water Revenue Residential '' 11 472 028_ ( ) r ��.� $ $12, 1:- $12,536,17.3 =_ ±,'S at Reve - r�rr�ial F;j' Det.) 385,979 /'� $1,351,329 - 1,610,23 $1610,235 -,� -pe /lrrigat4r� $2,782,183 , J ,443 ,531, y»$2,531,784 g Service Charges Other Operating Revenue 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) $9,426,652 $5,155,612 $5,206,830 $5,206,830 $3,556,678 $2,321,449 $617,654 $617,654 $28,623,519 $23,738,727 $22,502,674 $22,502,674 $2,075,230 $1,863,643 $1,659,600 $1,659,600 $30,698,749 $25,602,370 $24,162,274 $24,162,274 $12,080,410 $10,818,693 $12,710,504 $12,710,504 $8,118,352 $7,544,947 $8,252,259 $8,252,259 $6,576,551 $4,317,729 $4,466,667 $4,466,667 $26,775,313 $22,681,370 $25,429,431 $25,429,431 $1,677,685 $1,728,945 $1,744,884 $23,000 $28,452,998 $24,410,315 $27,174,315 $25,452,431 $2,245,751 $1,192,055 - $3,012,041 - $1,290,157 $6,003,400 $6,200,624 $6,198,432 $0 $104,605 $0 $0 ($3,757,649) ($4,903,964) ($9,210,473) ($1,290,157) Debt Service Obligation $ 2,716,884 Debt Service Coveraae - 47.49% Backup Material Distributed Less Than 24 Hours Prior to the Meeting Budget Summary (Sewer Only) Sewer Parcel Assessments Other Operating Revenue 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 r Income Before Depreciation & Capital Contributions Depreciation Capital Contributions Income (Loss) Budge Fprecast Budget • FY-I5/ _ _ 15/16) __[FY $1,584,34 - , -- ,712,24 $201,500 $206,779 $209,226 $36,291 $62,545 $37,171 $1,822,139 $1,933,912 $1,958,640 $19,925 $46,962 $26,925 $1,842,064 $1,980,874 $1,985,565 $0 $0 $0 $845,865 $831,493 $882,968 $987,566 $418,094 $609,672 $1,833,432 $1,249,587 $1,492,640 $0 $0 $0 $1,833,432 $1,249,587 $1,492,640 $8,633 $731,287 $492,925 $1,346,600 $1,366,520 $1,366,520 $0 $74,504 $0 ($1,337,967) ($560,729) ($873,595) Backup Material Distributed Less Than 24 Hours Prior to the Meeting Revenues FYI 5-16 Budget ■ Water Base Fee Sewer Charge :1A FYI 5-16 Projected FYI 6-17 Budget ■ Water Variable Charge Other Op. Revenue Backup Material Distributed Less Than 24 Hours Prior to the Meeting Operating Expenses & CIP PP FYI 5-16 Budget F Salaries & Benefits Supplies Backup Material Distributed Less Than 24 Hours Prior to the Meeting Total Demand (AF) Water & Power ($) Water Only Fixed Costs Power Demand to Budget • Above Budget ($) • Above Actual ($) Variable Water Costs 6 FY 15/16 ' FY: 5/16 FY 16/17 Budget , Budget" Mar-JuBudget J _= 16,534 16,028 17,030 12,080,409.94 $ 10,818,693.31 $ 12,710,504.38 9,111,464.51 $ 8,135,192.58 $ 9,820,547.34 1,565,541.30 $ 1,565,541.30 $ 1,575,605.64 1,403,404.13 $ 1,117,959.42 $ 1,314,351.40 12,080,409.94 $ 10,818,693.31 $ 12,710,504.38 -3% 3% -10% 5% 17% • FY 15/16 Budget to Actual- ($1.26M) = 3% Less in Demand= 10% Less in CoC • ($976K)- Water Costs Only — Increased GW & CUP Pumped Later In Year • FY 16/17: Assuming 3% Demand Above FY15/16 Budget • Cost = 5% Above FY 15/16 Budget Cost - -- OCWD /MWD Rate Increases • Cost = 17% Above FY 15/16 Actual Cost— GW Savings not Guaranteed Backup Material Distributed Less Than 24 Hours Prior to the Meeting FY 16/17 Expenses Key Factors (Budget -to- Budget) • $630,000 -- Total Variable Water Cost Increase - Includes MW D & OCW D Rate Increases, Power & Pumping - Based on 3 Above FY 15/16 Budget (6% from Projected FYE 15 -16) • ($2.48M)-- Supplies &Services Net Decrease - ($2.4M) in Fees & Permits -- SWRCB fines reduced to $500 /day 1 - ($193,000) in Maintenance Expenses -- City of YL Sewer Transfer - ($105,000) in Professional Services -- Additional Work Done In -House - $246,000 in Election Expenses- Regular & Recall Election, Signatures - $52,000 in Various Expenses- Electricity for Admin /Richfield Buildings, Cost Increases for Software, etc. Backup Material Distributed Less Than 24 Hours Prior to the Meeting FY 16/17 Expenses Key Factors (Budget -to- Budget) • $219,009 -- Personnel - Related Expenses Increase - Includes Projected Salary Increases, PERS, Medical & OPEE Contribution • ($394,000) -- Vehicle Equip. &Capital Outlay Dec - No Sewer Vactor Truck ($400,000) from Previous Year Budg Backup Material Distributed Less Than 24 Hours Prior to the Meeting Personnel Costs :• -.�"1( -r - - ►� -"c`"' ' -�V 2b15/2016 FY �✓_-�. _ ' Jam' s' 9 �M� �1 2016/c`:,. .- • - r• _ _ Increase%±,, - e `` B°Ld get -- Total Wages Regular $ 6,161,829 $ 6,404,409 $ 242,580 Enforcement $ 228,753 $ 72,310 $ (156,443) Overtime $ 185,514 $ 193,734 $ 8,220 Standby Day Pay $ 32,100 $ 32,100 $ - Mandatory Benefits CaIPERS /SS /Medicare $ 597,314 $ 632,760 $ 35,446 Unfunded Accrued Liability $ 206,619 $ 251,948 $ 45,329 Workers' Compensation $ 131,835 $ 122,508 $ (9,327) Fringe Benefits Medical, Dental & Vision $ 1,031,224 $ 1,066,414 $ 35,190 Cert. /Class A Pay $ - $ 19,950 $ 19,950 Tuition Reimbursement $ 21,049 $ 5,982 $ (15,067) Other Insurances /Benefits $ 142,750 $ 142,632 $ (118) Retiree Benefits $ 150,590 $ 148,114 $ (2,476) OPEB Contributions $ 197,742 $ 211,867 $ 14,125 Replacement Benefit Plan $ 1,500 $ 1,800 $ 300 Unemployment Insurance $ 10,400 $ 11,700 $ 1,300 $ 9,099,219 $ 9,318,228 $ 219,009 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Replacement Costs for Water Only Assets ($558M) Above - Ground Facilities • 9 Wells & Richfield Plant • 14 Reservoirs • 12 BPS • 37 PRS • 10 Interconnections • 4 Import Water Connections - $150M Below- Ground Facil • Water Main Replacement (4 in- 39in) - $408M k f0, Backup Material Distributed Less Than 24 Hours Prior to the Meeting Replacement Costs for Wastewater Only Assets ($253M) _ �";�y+!s`': � _' a _:,3v: � ►. .:cam r ��-, = � � 7 '� a i- lac, ei- • Manholes • Additional Replacement Costs for C Sewer Transfer Agreement = $34M Backup Material Distributed Less Than 24 Hours Prior to the Meeting 5 Year CIP Projections Water Capital Funds Available for Use at 2/29/2016 $17,818,866 200,000 $ 200,000 $ ----------- T-1 fIP Riirlout - Annrnvurl __________\ V- fIP Riirlout Fnr Fvnunrl itiiruc fnr Annrnvurl Prniurtc R & R Subtotal $ 6,688,590 $ (1,530,005) $ 5,158,585 $ 184,425 $ 267,368 $ 1,060,175 $ 2,002,000 $ 973,100 $ - $ - Vehicle and Capital Equipment Replacement (Single Year Budget Forecast) Vehicle& Capital Equipment Replacement - Sewer $ 680,000 $ - $ 288,396 Recommended $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 Vehicle & Capital Equipment Replacement- Water $ 392,000 $ )00 $ 392,000 $ 392,000 $678,000 $165,000 $177,000 $180,000 $175, 0004 Vehicle& Capital Equipment Subtotal $ 1,072,000 $ - $ 678,000 FY 15/16 Total Projected $ 1,072,000 $ 678,000 $ 365,000 $ 377,000 $ 380,000 $ 375,000 Repayment of LOC Principal to Wells Fargo Bank Current CIP Budget Revised Total FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 19/20 $ 12,062,121 $ 7,018,000 $ 3,848,100 $ 380,000 $ 375,000 (March -June) CIPExpenses Budget For FY Adjustments to CIP Budget For Forecast of ClP Thru FYE June Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP 2015/16 Listed CIP FY 2016/17 Expenditures Expenditures Expenditures Expenditures Expenditures Budgets Cash Outflows 2016 Water Capital FuT _ - _ S & W Well Project (Well No. 21) $ 2,306,789 $ - $ 2,306,789 $ 284,867 $ 1,523,240 $ 576,900 $ - S & W Well Project (Well No. 22) $ 2,500,000 $ - $ 2,500,000 $ - $ 64,719 $ 315,000 $ 765,000 $ 910,000 $ - FairmontBPSUpgrade $ 6,300,000 $ 1,530,005 $ 7,830,005 $ - $ 760,005 $ 1,596,000 $ 3,886,000 $ 1,588,000 $ - Richfield Road Pipeline $ 1,450,000 $ - $ 1,450,000 $ 278,700 $ 371,899 $ 836,046 $ - $ - $ - Subtotal $ 12,556,789 $ 1,530,005 $ 14,086,794 $ 563,567 $ 2,719,863 $ 3,323,946 $ 4,651,000 $ 2,498,000 $ - $ Rehabilitation & Restoration 2015 Waterline Replacement $ 1,240,000 - $ 1,240,000 $ 184,425 $ 233,859 $ 553,275 $ - $ - $ - Timber Ridge BPS Rehabilitation $ 250,000 650,000 $ 900,000 $ - $ - $ 900,000 $ - Lakeview Booster Piping $ 100,000 54,000 $ 154,000 $ - $ - $ 130,900 $ 23,100 $ - PRS Rehabilitation Phase 2 $ 1,430,000 (704,000) $ 726,000 $ - $ 1,690 $ 506,900 $ 21,100 $ - Annual Routine Capital R &R $ 3,668,590 $ (1,530,005) $ 2,138,585 $ - $ 31,819 $ 950,000 $ 950,000 $ - R & R Subtotal $ 6,688,590 $ (1,530,005) $ 5,158,585 $ 184,425 $ 267,368 $ 1,060,175 $ 2,002,000 $ 973,100 $ - $ - Vehicle and Capital Equipment Replacement (Single Year Budget Forecast) Vehicle& Capital Equipment Replacement - Sewer $ 680,000 $ - $ 288,396 $ 680,000 $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 Vehicle & Capital Equipment Replacement- Water $ 392,000 $ )00 $ 392,000 $ 392,000 $678,000 $165,000 $177,000 $180,000 $175, 0004 Vehicle& Capital Equipment Subtotal $ 1,072,000 $ - $ 678,000 $ 680,396 $ 1,072,000 $ 678,000 $ 365,000 $ 377,000 $ 380,000 $ 375,000 Repayment of LOC Principal to Wells Fargo Bank $7,000,000 Subtotal $ 20,317,379 $ - $ 19,923,379 $ 1,428,388 $ 4,059,231 $ 12,062,121 $ 7,018,000 $ 3,848,100 $ 380,000 $ 375,000 Lakeview Grade Separation $ 662,444 - $ 662,444 $ 250,000 $ 656,653 $ 662,444 $ - $ 662,444 $ 250,000 $ 656,653 Grand Total $ 20,979,823 $ - $ 20,585,823 $ 1,678,388 $ 5,372,536 $ 12,062,121 $ 7 * Note - Dependent on receipt of OCTA billiing $16,428,874 $4,366,753 ($2,451,247) ($6,099,347) ($6,279,347) ($6,454,347) " T s� =y-g Total Project Adjusted Total FY 15/16 Total Projected Projects Completed in FY 2015/16 Budget Over /(Under) CIP Budget FY (March -June) CIP Expenses 2015/16 Budget 2015/16 Forecast Thru FYE June 2016 Lakeview Grade Separation $ 662,444 - $ 662,444 $ 250,000 $ 656,653 $ 662,444 $ - $ 662,444 $ 250,000 $ 656,653 Grand Total $ 20,979,823 $ - $ 20,585,823 $ 1,678,388 $ 5,372,536 $ 12,062,121 $ 7 * Note - Dependent on receipt of OCTA billiing $16,428,874 $4,366,753 ($2,451,247) ($6,099,347) ($6,279,347) ($6,454,347) " T s� =y-g Backup Material Distributed Less Than 24 Hours Prior to the Meeting 5 Year CIP Funding ' -��; �� - � � .., * . �► f � • � � --`, Jr -.,r l mow-`_- � � LA n b F 5- • FY 16/17: CIP Paid via Reserves + I! Due in September 2016 • Options for Funding 1. $7M Due &Paid September 2016 2. Extend $7M Payment to SeptembE 3. Pay $3.4M September 2016, Extenc Remainder to September 2017 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Water Capital Funds Available for Use at 2/29/2016 /---------- -Total CIP Budeet as Approved ---------- \ 5 Year CIP Budeet For Expenditures for Approved Proiects Water Capital Funds Available for Use S & W Well Project (Well No. 21) Recommended 2,306,759 FY 15/16 Total Projected $ 284,867 $ 1,523,240 $ 576,900 Current CIP Budget Revised Total S & W Well Project (Well No. 22) $ FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 19/20 Budget For FY Adjustments to CIP Budget For (March -June) CIP Expenses Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP Budgeted CIP 2015/16 Listed CIP FY 2016/17 Forecast of CIP Thru FYE June Expenditures Expenditures Expenditures Expenditures Expenditures $ Budgets $ - Cash Outflows 2016 275,700 $ 371,599 $ 536,046 Water Capital Funds Available for Use S & W Well Project (Well No. 21) $ 2,306,759 $ - $ 2,306,759 $ 284,867 $ 1,523,240 $ 576,900 (March -June) CIP Expenses $ - S & W Well Project (Well No. 22) $ 2,500,000 $ - $ 2,500,000 $ - $ 64,719 $ 315,000 $ 765,000 $ 910,000 $ - Fairmont BPS Upgrade $ 6,300,000 $ 1,530,005 $ 7,530,005 $ - $ 760,005 $ 1,596,000 $ 3,886,000 $ 1,588,000 $ - Richfield Road Pipeline $ 1,450,000 $ - $ 1,450,000 $ 275,700 $ 371,599 $ 536,046 - Subtotal $ 12,556,759 $ 1,530,005 $ 14,056,794 $ 563,567 $ 2,719,563 $ 3,323,946 $ 4,651,000 $ 2,495,000 Rehabilitation & Restoration 2015 Waterline Replacement $ 1,240,000 - $ 1,240,000 $ 154,425 $ 233,559 $ 553,275 - Timber Ridge BPS Rehabilitation $ 250,000 650,000 $ 900,000 $ - $ - $ 900,000 $ - Lakeview Booster Piping $ 100,000 54,000 $ 154,000 $ - $ - $ 130,900 $ 23,100 $ - PRS Rehabilitation Phase 2 $ 1,430,000 (704,000) $ 726,000 $ - $ 1,690 $ 506,900 $ 21,100 $ Annual Routine Capital R &R $ 3,665,590 $ (1,530,005) $ 2,138,585 $ - $ 31,519 $ 950,000 $ 950,000 $ - R & R Subtotal $ 6,688,590 $ (1,530,005) $ 5,158,585 $ 154,425 $ 267,365 $ 1,060,175 $ 2,002,000 $ 973,100 Vehicle and Capital Equipment Replacement (Single Year Budget Forecast) Vehicle & Capital Equipment Replacement - Sewer $ 650,000 $ - $ 288,396 $ 650,000 $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 Vehicle & Capital Equipment Replacement - Water $ 392,000 $ 675,000 $ 392,000 $ 392,000 $675,000 $165,000 $177,000 $150,000 $175,000 Vehicle & Capital Equipment Subtotal $ 1,072,000 $ - $ 675,000 $ 650,396 $ 1,072,000 $ 675,000 $ 365,000 $ 377,000 $ 350,000 $ 375,000 Repayment of LOC Principal to Wells Fargo Bank $7,000,000 Subtotal $ 20,317,379 $ - $ 19,923,379 $ 1,428,388 $ 4,059,231 $ 12,062,121 $ 7,018,000 $ 3,848,100 $ 380,000 $ 375,000 La Keview oraae �eparauon > OOZ,444 - > OOZ,44� > Z}u,uuu > $ 662,444 $ - $ 662,444 $ 250,000 $ 656,653 Grand Total $ 20,979,823 $ - $ 20,585,823 $ 1,678,388 $ 5,372,536 # $ 12,062,121 $ 7,018,000 $ 3,848,100 $ 380,000 $ 375,000 * Note - Dependent on receipt of OCTA billiing $16,428,874 $4,366,753 ($2,451,247) ($6,099,347) ($6,279,347) ($6,454,347) Total Project Adjusted Total FY 15/16 Total Projected Projects Completed in FY 2015/16 Budget Over /(Under) CIP Budget FY (March -June) CIP Expenses 2015/16 Budget 2015/16 Forecast Thru FYE June 06 JL 2016 La Keview oraae �eparauon > OOZ,444 - > OOZ,44� > Z}u,uuu > $ 662,444 $ - $ 662,444 $ 250,000 $ 656,653 Grand Total $ 20,979,823 $ - $ 20,585,823 $ 1,678,388 $ 5,372,536 # $ 12,062,121 $ 7,018,000 $ 3,848,100 $ 380,000 $ 375,000 * Note - Dependent on receipt of OCTA billiing $16,428,874 $4,366,753 ($2,451,247) ($6,099,347) ($6,279,347) ($6,454,347) Backup Material Distributed Less Than 24 Hours Prior to the Meeting Wells Fargo Line of Credit Payment Analysis Scenario 1 - Pay off the LOC in September 2016 & Pay-As-Go for CIP (Loss of interest revenue with paying CIP from YLWD Captial Reserve Funds) FY2016-17 FY2017-18 Total 1st Qtr. $19,353 $30,893 $90,976 2nd Qtr. $22,316 $0 $72,605 3rd Qtr. $24,497 $0 $76,276 4th Qtr. $27,269 $0 $82,989 $93,434 $30,893 $322,847 Scenario 2 - Pay off the LOC September 2017 & Pay-As-Go for CIP (Interest expense on $71M LOC& loss of interest revenue with paying additional CIP from the YLWD Capital Reserve Fund) FY 2016-17 FY2017-18 Total 1st Qtr. $23,735 $35,634 $100,100 2nd Qtr. $26,788 $0 $77,078 3rd Qtr. $28,960 $0 $80,739 4th Qtr. $31,869 $0 $87,590 $111,352 $35,634 $345,506 Scenario 3 - Pay $3.45M on LOC (in Sept 2016) with Refunding 2008 COP & extend LOC until Setpember 2017 (Interest expense on $7M LOC) FY 2016-17 FY2017-18 Total 1st Qtr. $15,826 $26,904 $83,460 2nd Qtr. $18,541 $0 $68,831 3rd Qtr. $20,614 $0 $72,393 4th Qtr. $23,323 $0 $79,043 $78,304 $26,904 $303,728 ITEM NO. 5.2 AGENDA REPORT Meeting Date: March 30, 2016 Reviewed by Legal: Yes Subject: Potential Amendments to Ordinance No. 15-01 ATTACHMENTS: Name: Description: Type: Backup Material Distributed Less Than 24 Hours Prior to DRAFT Ordinance.pdf Backup Material the Meeting Backup Material Distributed Less Than 24 Hours Prior to the Meeting ORDINANCE NO. 16-XX ORDINANCE OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT REPLEALING ORDINANCE NO. 15-01 AND ADOPTING A FLEXIBLE DROUGHT PENALTY STRUCTURE WHEREAS, on January 17, 2014 the Governor of California proclaimed a State of Emergency due to severe drought conditions and directed state officials to take all necessary actions to prepare for these drought conditions; and WHEREAS, on April 25, 2014 the Governor of California issued an executive order that called on all Californians to redouble their efforts to conserve water; and WHEREAS, on April 1 , 2015, due to persisting drought conditions, the Governor of California issued an executive order that called for a statewide reduction in potable water use of 25%; and WHEREAS, on May 6, 2015, emergency drought regulations, which were adopted by the State Water Resources Control Board (SWRCB), went into effect setting conservation mandates for water suppliers; and WHEREAS, the SWRCB established a conservation mandate of 36% for Yorba Linda Water District; and look IdEw h, WHEREAS, the SWRCB may impose penalties of up to $10,000 per day against Yorba Linda Water District for its failure to meet the 36% conservation mandate; and ►, 4ffl"4q%khhA WHEREAS, on May 11, 2015 the Board of Directors adopted Resolution No. 15-04, which determined that due to drought and other water supply conditions, a water shortage or threatened shortage exists and a consumer demand reduction is necessary to make more efficient use of water and appropriately respond to existing water conditions; and WHEREAS, on May 28, 2015, the Board of Directors adopted Ordinance No. 15-01 , which imposed administrative penalties on District customers should their consumption exceed certain amounts; and WHEREAS, on February 2, 2016, the SWRCB adopted an extended and revised emergency drought regulation to ensure that urban water conservation continues through October 2016 while providing urban water suppliers more flexibility in meeting their conservation requirements, including potential downward adjustments to urban water suppliers' conservation mandate that range from 2% to a maximum of 8%; and Ordinance No. 16-XX Adopting a Flexible Drought Penalty Structure 1 Backup Material Distributed Less Than 24 Hours Prior to the Meeting WHERAS, on February 22, 2016, the Yorba Linda Water District submitted an application to the SWRCB, requesting the maximum downward adjustment of 8% from the District's 36% conservation mandate, which may be granted in whole, in part, or not at all, but the District is optimistic that it has satisfied SWRCB's requirements for an adjustment. WHEREAS, as of March 1, 2016, the District and its customers have met the SWRCB mandated 36% cut in water usage; and WHEREAS, in recognition of its customers significant reduction in water usage, the Board of Directors resolve to repeal Ordinance No. 15-01 and its rigid application of penalties on District customers and replace it with a more flexible penalty structure that will allow the Board of Directors to apply penalties in accordance with its customers' water usage, the District's water shortage contingency ordinance, and the SWRCB's conservation mandate; and Ir X WHEREAS, the penalties established and imposed herein are not for the purpose of recovering the cost of providing water service to Yorba Linda Water District's water customers. NOW THEREFORE BE IT ORDAINED, under the authority of State law, including, but not limited to Sections 31026 and 31028 of the California Water Code and 53069.4 of the California Government Code, that the Board of Directors of the Yorba Linda Water District does hereby find that the above recitals are true and correct and therefore establish water use restrictions, and establish and impose administrative penalties upon any customer who exceeds the water use restrictions, in order to (1) comply with the SWRCB's conservation mandate, (2) protect the District's water supplies, (3) reduce the quantity of water consumed, and (4) deter and prevent the waste or unreasonable use of valuable water resources. Section 1. Board Authority to Enact and Suspend Administrative Penalties by Resolution The appropriate stage of administrative penalties may be enacted or suspended, by Board resolution, based on a Board finding regarding the District's customers' water usage, the District's water supply shortage stage under its water shortage contingency ordinance, the SWRCB's percentage of conservation mandate to the District, or any other finding consistent with this ordinance. Section 2. Stage of Administrative Penalties for Exceeding Mandatory Water Use Restrictions Upon resolution of the Board of Directors, each customer who has a potable water account with the District shall be subject to either no penalties under Stage No. 1 or the following administrative penalties under Ordinance No. 16-XX Adopting a Flexible Drought Penalty Structure 2 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Stage Nos. 2, 3, and 4 at the end of their respective billing cycle should their usage exceed the amounts set forth below: A. Stage 1: (No Penalties) Residential Penalty Block 1 1-18 Units $ - Block 2 19-29 Units $ - Block 3 30-49 Units $ - Block 4 50-74 Units $ - Block 5 75-99 Units $ - Block 6 100+ Units $ - Commercial Penalty Block 1 1-50 Units Block 2 51-75 Units $ Block 3 76-100 Units $ - Block 4 100-150 Units Block 5 151-200 Units - Block 6 200+ Units $ - Irrigation Penalty Block 1 1-115 Units $ - Block 2 116-200 Units $ - Block 3 201-300 Units $ - Block 4 301-400 Units $ - Block 5 401-500 Units $ Block 6 500+ Units $ - B. IV Residential Penalty Block 1 1-18 Units $ - Block 2 19-29 Units $ - Block 3 30-49 Units $ - Block 4 50-74 Units $ 10.00 Block 5 75-99 Units $ 20.00 Block 6 100+ Units $ 40.00 Ordinance No. 16-XX Adopting a Flexible Drought Penalty Structure 3 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Commercial Penalty Block 1 1-50 Units $ - Block 2 51-75 Units $ - Block 3 76-100 Units $ - Block 4 100-150 Units $ 25.00 Block 5 151-200 Units $ 50.00 Block 6 200+ Units $ 100.00 Irrigation Penalty, Block 1 1-115 Units - Block 2 116-200 Units - Block 3 201-300 Units $ - B lock 4 301-400 Units $ 65.00 Block 5 401-500 Units $ 130.00 Block 6 500+ Units $ 260.00 C. Stage 3: Residential alt Block 1 1-18 Units - Block 2 19-29 Units $ - Block 3 30-49 Units $4 10.00 Block 4 50-74 Units 20.00 Block 5 75-99 Units $ 40.00 Block 6 100+ Units $ 80.00 FL Commercial Penalty Block 1 1-50 Units $ - Block 2 51-75 Units $ - Block 3 76-100 Units $ 25.00 Block 4 100-150 Units $ 50.00 Block 5 151-200 Units $ 100.00 Block 6 200+ Units $ 200.00 Ordinance No. 16-XX Adopting a Flexible Drought Penalty Structure 4 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Irrigation Penalty Block 1 1-115 Units $ - Block 2 116-200 Units $ - B lock 3 201-300 Units $ 65.00 Block 4 301-400 Units $ 130.00 Block 5 401-500 Units $ 260.00 Block 6 500+ Units $ 520.00 D. Stage 4: (Former Structure Under Ordinance No. 15-011 Residential Penalty Block 1 1-18 Units $ - Block 2 19-29 Units $ 10.00 Block 3 30-49 Units $ 20.00 Block 4 50-74 Units $ 40.00 Block 5 75-99 Units $ 80.00 Block 6 100+ Units $ 160.00 Commercial Penalt Block 1 1-50 Units $ - 46* Block 2 51-75 Units $ 25.00 Block 3 76-100 Units $ 50.00 Block 4 100-150 Units $ 100.00 Block 5 151-200 Units $ 200.00 Block 6 200+ Units $ 400.00 Irrigation Penalty Block 1 1-115 Units $ - Block 2 116-200 Units $ 65.00 Block 3 201-300 Units $ 130.00 Block 4 301-400 Units $ 260.00 Block 5 401-500 Units $ 520.00 Block 6 500+ Units $ 1,040.00 Section 3. Payment of Penalties Any penalty imposed pursuant to Section 1 shall be collected on the customer's water bill. Failure to pay a penalty amount will be treated as nonpayment of the water bill and water service may be terminated as a result. In the event that the individual responsible for payment of the Ordinance No. 16-XX Adopting a Flexible Drought Penalty Structure 5 Backup Material Distributed Less Than 24 Hours Prior to the Meeting water bill is not the violator of this Ordinance, notification of penalties will go to the billing address on file, with any and all fines and associated charges. Payment of the bill will be the final responsibility of the individual named on the account. Section 4. Appeal Procedures 1. Filing an Appeal. Any customer who wishes to appeal an administrative penalty imposed by the District pursuant to this Ordinance shall comply with the following procedures: a. The appellant shall pay all amounts due and owing on his/her water bill, including any disputed penalty(ies) imposed by the District pursuant to this Ordinance. b. The appellant shall submit an appeal request form (Exhibit A) to the General Manager or his/her designee no later than fourteen (14) days from the date of the appellant's water bill for the billing cycle in which any penalty(ies) are imposed. c. The appellant shall submit proof, as deemed necessary by the District, in support of the appeal request. Such support may take the form of invoices, photos, etc. 2. Basis for Granting an Appeal. An appeal may be granted under the following limited circumstances: a. The amount of water delivered to the appealing customer's property id not violate the rules and regulations as evidenced by either a demonstrable malfunction in the meter serving the customer's property or a billing error by the District. b. The amount of water used by the appealing customer's property exceeded the appropriate stage of administrative penalties as a result of a pipe leak (or leaks), but the customer fixed the leak(s) within the fourteen (14) days provided in Section 4(1)(b) above. IEW c. The appealing customer demonstrates the water use is needed for human health and/or safety reasons. 3. Denial of Appeal Request. The decision by the General Manager or his/her designee to deny a request for appeal shall be final. Ordinance No. 16-XX Adopting a Flexible Drought Penalty Structure 6 Backup Material Distributed Less Than 24 Hours Prior to the Meeting Section 5. Use of Penalties Penalty funds collected pursuant to this Ordinance shall not be collected for the purpose of recovering the cost of providing water service to Yorba Linda Water District's water customers and shall be segregated into a fund which is not used to pay the cost of providing water service to Yorba Linda Water District's water customers. Section 6. These rules and regulations shall be in full force and effect on May 1, 2016. Section 7. The Board Secretary is hereby instructed to publish this Ordinance pursuant to subdivision (a) of Section 31027 of the California Water Code. PASSED AND ADOPTED this _day of April 2016, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Ric Collett, President Yorba Linda Water District ATTEST: Marc Marcantonio, Board Secre a Yorba Linda Water District Reviewed as to for by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP Ordinance No. 16-XX Adopting a Flexible Drought Penalty Structure 7