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2017-05-23 - Board of Directors Meeting Agenda Packet (A)
Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, May 23, 2017, 4:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. ROLL CALL J. Wayne Miller, President Al Nederhood, Vice President Andrew J. Hall, Director Phil Hawkins, Director Brooke Jones, Director 3. 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. 4. 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. 4.1. Budget for 5-Year Capital Improvement Plan, Supplies and Services, and Salaries and Benefits for FY 2018 5. ADJOURNMENT 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. 4.1 AGENDA REPORT Meeting Date: May 23, 2017 Subject: Budget for 5-Year Capital Improvement Plan, Supplies and Services, and Salaries and Benefits for FY 2018 i ATTACHMENTS: Name: Description: Type: Budget Workshoo Presentation.odf Backup Material Backup Material Budget Workshop Presentation Revised Slides.0 Revised Backup Material Backup Material Revised CIP Budget Worksheet for FY18.pdf Revised Backup Material Backup Material Yorba Linda Water District Budget Workshop #3 FY 2018 Presented By: Marc Marcantonio, General Manager Gina Knight, HR & Risk Manager Kelly McCann, Senior Accountant Cindy Botts, Management Analyst April 23, 2017 'ape - - /!3\ CIP 2 FYI 8 CIP Key Factors • Capital -related Expenditures consist of 3 Categories: 1. Capital Improvement Projects (New Projects) 2. Replacement & Refurbishment (R&R) 3. Capital Outlay (Trucks, SCADA upgrades, etc.) • No Additional Money Requested this Year - Update to Asset Management Plan in FY18 - AMP Recommendations incorporated in FYI • Without Additional Funds Authorized for Use, Out of R&R Funds by FY21 Capital -Related Expenditures Capital Improvement Projects (CIP) $1.OM $0.8M $3.5M $3.3M $1.OM R & R $0.2M $0.2M $1.1 M $0.5M $1.1 M Capital Outlay $0.4M $0.1 M $0.9M $0.8M $0.3M TOTAL: $1.6M $1.1 M $5.5M $4.6M $2.4M Note: FY18 Budget does not include $3.9M in the CIP category that is funded out of the 2017A bonds. FYI 8 Capital Improvement Projects See Handout Water Capital Reserve/Investment Acct Balance 2/28/2017 $16,414,896 Less Minimum Water Capital Reserve Requirement $1,820,000 Water Capital Funds Available for Use at 2/28/2017 $14,594,896 1 2 3 4 /........... ---------- Water Capital Funds Available for Use A 5 & W Well Project (Well No. 22) BLakeview Grade Separation C Fairmont BPS Upgrade Rehabilitation & Restoration D Timber Ridge BPS Rehabilitation E Lakeview Booster Piping F PRS Rehabilitation Phase 2 R&R Water & Sewer Investment G Richfield Chlorination System H Well 20 On -Site Chlorine Generation System I Chlorination System at CDB and HH Reservoirs 1 North Palm Avenue Pipeline KSusana, Bryant &John Bixby Pipelines L Replace old Cast Iron Pipelines (1920s to 1940s) M Camino Verde/South Ohio St Pipeline N Imperial Hwy Pipeline O South Ohio St Pipeline P Rose Drive Pipeline Q San Antonio Pipeline RValve Replacement inside Dist Reservoirs (10 valves) S PRS Rehabilitation Phase 3 T Sewer R&R (Relining) U Proposed CIP Budget for FY2018 5 6 7 8 9 S ymr riP R„Aenh Fnr F .... 4ih„ fnr annrnr,a4 Prninrh< $ 2,500,000 $ - $ 2,500,000 $ 49,170 $ 1,018,116 $ 90,000 $ 1,300,000 $ - $ - $ 662,444 - $ 662,444 $ 176,659 $ 150,000 $ - $ - $ - $ - $ 7,830,005 $ 7,830,005 $ 1,690,015 $ 3,663,369 $ 2,009,824 $ $ $ Subtotal $ 10,992,449 $ - $ 10,992,449 $ 1,837,594 $ 4,831,485 $ 2,099,824 $ 1,300,000 $ - $ - $ 900,000 Recommended $ 900,000 $ $ 154,000 - $ 154,000 $ $ 726,000 - $ 726,000 $ 5 Year CIP Budget Revised 5 Year Year -End FY17 FY18 Budgeted FY19 Budgeted FY20 Budgeted FY21 Budgeted FY22 Budgeted Budget For Adjustments to CIP Budget for Projected CIP CIP CIP CIP CIP CIP FY17 Listed CIP FY18 Expenditures Expenditures Expenditures Expenditures Expenditures Expenditures 292,000 $ Budgets 220,000 $ 262,000 $ 162,000 Vehicle& Capital Equipment Subtotal $ 963,000 $ 1,010,101 $ 1,973,101 $ 777,101 $ 292,000 $ $ 2,500,000 $ - $ 2,500,000 $ 49,170 $ 1,018,116 $ 90,000 $ 1,300,000 $ - $ - $ 662,444 - $ 662,444 $ 176,659 $ 150,000 $ - $ - $ - $ - $ 7,830,005 $ 7,830,005 $ 1,690,015 $ 3,663,369 $ 2,009,824 $ $ $ Subtotal $ 10,992,449 $ - $ 10,992,449 $ 1,837,594 $ 4,831,485 $ 2,099,824 $ 1,300,000 $ - $ - $ 900,000 - $ 900,000 $ $ 154,000 - $ 154,000 $ $ 726,000 - $ 726,000 $ $ 2,138,585 - $ $ - $ $ - $250,000 $ 250,000 $ $ 545,639 - $ 50,000 $ 850,000 $ $50,000 $ 50,000 $ 50,000 $ 688,585 $ - $ - $ V Vehicle& Capital Equipment Replacement -Sewer $ - $ 900,000 $ 900,000 $ $ - $ 738,585 $ 738,585 $ - $ - $ - W Vehicle & Capital Equipment Replacement- Water $ 963,000 $ 1,010,101 $ 1,973,101 $ 777,101 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Vehicle& Capital Equipment Subtotal $ 963,000 $ 1,010,101 $ 1,973,101 $ 777,101 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Subtotal $ 15,874,034 $ 3,148,686 $ 16,884,135 $ 2,626,056 $ $200,000 $ 200,000 $ 100,000 $ - - $ 90,000 $ 810,000 $ - $ 38,500 $ 115,500 $ 11,361 $ 574,639 $ 140,000 $ - $ - $ - $250,000 $ - $ - $ - $ 1,074,639 $ 1,778,585 $ 128,500 $ 925,500 $ - - $50,000 $ - $ - $ - $ Z 2015 Waterline Replacement $ 1,240,000 Expenditures $ 545,639 - $ 50,000 $ 850,000 $ - $ - $ - $ 50,000 $ 688,585 $ - $ - $ V Vehicle& Capital Equipment Replacement -Sewer $ - $ - $ - $ - $ - $ - $ - $ - $ - W Vehicle & Capital Equipment Replacement- Water $ 963,000 $ 1,010,101 $ 1,973,101 $ 777,101 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Vehicle& Capital Equipment Subtotal $ 963,000 $ 1,010,101 $ 1,973,101 $ 777,101 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Subtotal $ 15,874,034 $ 3,148,686 $ 16,884,135 $ 2,626,056 $ - $ 100,000 $ 100,000 $ - R&RSubtotal $ 3,918,585 $2,138,585 $ 3,918,585 $ 11,361 $ 1,074,639 $ 1,778,585 $ 128,500 $ 925,500 $ - Vehicle and Capital Equipment Replacement - Capital Outlay CIP FY16 Z 2015 Waterline Replacement $ 1,240,000 Expenditures $ 545,639 (Single Year Budget Forecast) AA TOTAL $ 4,996,789 $ $ 4,996,789 $ 2,021,239 V Vehicle& Capital Equipment Replacement -Sewer $ - $ - $ - $ - $ - $ - $ - $ - $ - W Vehicle & Capital Equipment Replacement- Water $ 963,000 $ 1,010,101 $ 1,973,101 $ 777,101 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Vehicle& Capital Equipment Subtotal $ 963,000 $ 1,010,101 $ 1,973,101 $ 777,101 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Subtotal $ 15,874,034 $ 3,148,686 $ 16,884,135 $ 2,626,056 $ 6,198,124 $ 4,138,409 $ 1,648,500 $ 1,187,500 $ 162,000 X 5 & W Well Project (Well No. 21) Total Project Over/(Under) Adjusted Total FY17 Projected Projects Completed in FY17 Budget Budget CIP Budget FY17 CIP FY16 Z 2015 Waterline Replacement $ 1,240,000 Expenditures X 5 & W Well Project (Well No. 21) $ 2,306,789 $ - $ 2,306,789 $ 322,878 Y Richfield Road Pipeline $ 1,450,000 $ - $ 1,450,000 $ 1,152,723 Z 2015 Waterline Replacement $ 1,240,000 - $ 1,240,000 $ 545,639 AA TOTAL $ 4,996,789 $ $ 4,996,789 $ 2,021,239 AB TOTAL $ 20,870,823 $ 3,148,686 $ 21,880,924 $ 4,647,295 $ 6,198,124 $ 4,138,409 $ 1,648,500 $ 1,187,500 $ 162,000 Restricted Funds for Fairmont BPS (2017A Revenue Bonds) ($3,663,369) ($2,009,824) GRANDTOTAL $ 20,870,823 $ 3,148,686 $ 21,880,924 $ 4,647,295 $ 2,534,755 $ 2,128,585 $ 1,648,500 $ 1,187,500 $ 162,000 AD Water Capital Reserves Available to Fund Future CIP (excludes Fairmont BPS) $ 9,353,158 $ 7,224,573 $ 5,576,073 $ 4,388,573 $ 4,226,573 ..p Sur)r)l*ies & Services FY18 Supplies and Services Detain Budget FY18 vs. Forecast FY17 FY17 FY17 FY17 FY18 Increase/ Budget Forecast Variance Budget Decrease Variance Communications $ 212,825 $ 175,272 $ (37,553) $ 226,575 $ 51,303 29% Contractual Services $ 551,165 $ 463,868 $ (87,297) $ 523,490 $ 59,622 13% Data Processing $ 263,709 $ 252,927 $ (10,782) $ 250,400 $ (2,527) -1% Dues & Memberships $ 91,285 $ 88,360 $ (2,925) $ 86,545 $ (1,815) -2% Fees & Permits $ 251,425 $ 264,553 $ 13,128 $ 282,115 $ 17,562 7% Board Election Expenses $ 246,000 $ 129,971 $ (116,029) $ - $ (129,971) -100% Insurance $ 286,340 $ 256,298 $ (30,042) $ 286,340 $ 30,042 12% Materials $ 817,200 $ 866,084 $ 48,884 $ 849,000 $ (17,084) -2% District Activities & Events $ 28,450 $ 9,606 $ (18,844) $ 24,200 $ 14,594 152% Maintenance $ 564,830 $ 509,261 $ (55,569) $ 509,900 $ 639 0% Non -Capital Equipment $ 193,050 $ 139,095 $ (53,955) $ 180,825 $ 41,730 30% Office Expense $ 41,600 $ 37,439 $ (4,161) $ 42,625 $ 5,186 14% Professional Services $ 598,000 $ 571,020 $ (26,980) $ 850,525 $ 279,505 49% Professional Development $ 77,085 $ 44,480 $ (32,605) $ 67,210 $ 22,730 51% Travel & Conferences $ 121,565 $ 61,761 $ (59,804) $ 113,745 $ 51,984 84% Uncollectible Accounts $ 35,000 $ 18,243 $ (16,757) $ 25,000 $ 6,757 37% Utilities $ 227,500 $ 139,314 $ (88,186) $ 176,700 $ 37,386 27% Vehicle Expenses $ 362,200 $ 338,410 $ (23,790) $ 356,000 $ 17,590 5% $ 485,233 11% $4,969,229 $4,365,962 $(603,267) $4,851,195 FYI 8 Supplies and Services 4 Key Factors- Categories >_5% Change Increase over ategory FYI Forecast Chi Update to District Website Contractual $59,622 13% $46,000 Customer Usage Analytics - Services previously paid for by Penalties $13,000 Increase in Water Quality Testing Fees & Permits $17,562 7% Landfill/AQMD fee increases Board Election ($129,971) -100% No Board Election Costs for FYI Expenses Insurance $30,042 12% Increase of Liability/Property Insurance Premiums District Activities $14,594 152% Employee Communication & Service & Events Recognition Non -Capital $41,730 300 $25,000 CMMS Notebooks- Delayed* Equipment $16,000 IT Switches & Network Equipment - Delayed Office Expense $5,186 14% Emergency Preparedness Materials, Increase in Office Supplies * May be included in potential Administrative Reserve category in Draft Reserve Policy FYI 8 Supplies and Services 4 Key Factors- Categories >_5% Change Office Expense $5,186 Professional $279,505 Services Professional $22,730 Development Travel & $51,984 Conferences 14% 49% $100,000 $60,000 $50,000 $50,000 $20,000 51% 84% Emergency Preparedness Materials, Increase in Office Supplies 36% Asset Management Plan Update 21% Employee Compensation Survey 18% Legal Costs- Employment Law 18% Public Affairs Consultant 07% CMMS Consultant Staff not able to attend due to workload Staff not able to attend due to workload, Additional BOD conferences, etc. FYI 8 Supplies and Services 4 Key Factors- Categories >_5% Change Increase • - '. Uncollectible $6,757 37% Lower than expected Expenses in FYI Accounts Forecast. Anticipate slightly more in FYI 8 Utilities $37,386 27% Monthly Cost for Use of Internet Fiber Access Line- Delayed Vehicle Expense $17,590 5% Anticipated increases in Fuel Costs '. Supplies & Services Actuals to Forecast/Budget $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 10 Years of Actuals, Compared to FYI Forecast and FYI Budget FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast Budget Supplies & Services FY14 to FY18 Comparison Budget FY18 vs. Actual FY14 Note: Highlighted areas account for approximately 97% of FY14 Actual to FY18 Budget Variance FY14 FY17 FY18 Increase/ % Actual Forecast Budget Decrease Variance Communications $ 214,663 $ 175,272 $ 226,575 $ 11,912 6% Contractual Services $ 567,131 $ 463,868 $ 523,490 $ (43,641) -8% Data Processing $ 158,102 $ 252,927 $ 250,400 $ 92,298 58% Dues & Memberships $ 67,531 $ 88,360 $ 86,545 $ 19,014 28% Fees & Permits $ 183,295 $ 264,553 $ 282,115 $ 98,820 54% Board Election Expenses $ 37 $ 129,971 $ - $ (37) -100% Insurance $ 271,117 $ 256,298 $ 286,340 $ 15,223 6% Materials $ 720,404 $ 866,084 $ 849,000 $ 128,596 18% District Activities & Events $ 16,018 $ 9,606 $ 24,200 $ 8,182 51% Maintenance $ 397,238 $ 509,261 $ 509,900 $ 112,662 28% Non -Capital Equipment $ 138,443 $ 139,095 $ 180,825 $ 42,382 31% Office Expense $ 41,465 $ 37,439 $ 42,625 $ 1,160 3% Professional Services $ 532,899 $ 571,020 $ 850,525 $ 317,626 60% Professional Development $ 34,071 $ 44,480 $ 67,210 $ 33,139 97% Travel & Conferences $ 29,453 $ 61,761 $ 113,745 $ 84,292 286% Uncollectible Accounts $ 29,632 $ 18,243 $ 25,000 $ (4,632) -16% Utilities $ 38,201 $ 139,314 $ 176,700 $ 138,499 363% Vehicle Expenses $ 409,483 $ 338,410 $ 356,000 $ (53,483) -13% $ 1,002,012 23% $3,849,183 $4,365,962 $4,851,195 Note: Highlighted areas account for approximately 97% of FY14 Actual to FY18 Budget Variance FYI to FYI Variance Distribution $972,793 Data Processing, $92,298 Fees & Permits, $98,820 9 09% 10% 13% 11% 32% 08% 14% 97% of Tota Variance ($1,002,012) F FYI 4 to FYI 8 Variance Key Factors---;;�fCategories >_$50,000 Change Increase • - FYI 7 Forecast Explanation A Data Processing $92,298 58% Increased number of Software Purchases/Renewals Fees & Permits $92,820 54% $50,000- Dept. of Health (WQ) fee increase $30,000- AQMD fee increase Materials $128,596 18% Increased work completed & Increase in Cost of Supplies Maintenance $112,662 28% Increased work completed- Increases in Concrete, Asphalt, Dump Fees, etc. Professional $317,626 60% $100,000- Asset Management Plan Services $80,000- Routine Legal & HR Legal $60,000- Employee Compensation Survey $50,000- Public Affairs Consultant $25,000- CMMS Consultant Travel & $84,292 286% Increased attendance/fees for conferences Conferences (BOD/GM = 740 of Total) Utilities $138,499 3630 $100,000- SCADA/IT Communications Lines $40,000- Power cost increases ..p Salaries & Benefits Personnel Costs (Summary) Budget FY18 vs. Forecast FY17 FY17 FY17 FY17 FY18 Increase/ % Budget Forecast Variance Budget (Decrease) Variance Total Wages 6,594,293 6,312,277 (282,016) 6,790,209 477,931 7.6% Total Overtime 187,306 195,705 4,456 211,343 15,638 8.0% Standby Day Pay 32,100 32,100 0 32,100 0 0.0% Total Mandatory Benefits 1,019,024 1,034,816 15,792 1,127,246 92,430 8.9% Total Fringe Benefits 1,252,447 1,196,897 (55,550) 1,320,486 123,589 10.3% Retiree Benefits 148,114 117,354 (30,760) 145,244 27,890 23.8% OPEB Annual Required Contribution 211,867 217,396 5,529 223,680 6,284 2.9% 1959 CalPERS Survivor Benefit 3,000 5,025 2,025 4,000 (1,025) -20.4% Replacement Benefit Plan 1,800 957 (843) 1,800 843 88.2% Unemployment Insurance 11,700 5,961 (5,739) 11,700 5,739 96.3% Total = 9,461,651 9,118,489 (347,106) 9,867,807 749,318 8.2% Personnel Costs (Summary, Continued) Variance Distribution- Budget FY18 to Forecast FY17 Mandatory Benefits, 12.3% OT/Standby, 2.1% Retiree Benefits, 3.7% OPEB Annual Required itribution, 0.8% Wages, 63.8% Various Other Benefits/Insurance, 0.8% $749,318 Total Personnel Costs Increase �= Personnel Costs Wages Regular Vacation Sale Mgmt Leave Payout Floating Holiday Cashout Paid for by Admin Penalties Total Wages (Wages) FY17 Budget 6,594,293 FY17 Forecast 6,081,374 46,919 11,630 18,923 153,431 FY17 Variance (512,919) 46,919 11,630 18,923 153,431 Budget FY18 vs. Forecast FY17 FY18 Increase/ % Budget (Decrease) Variance 6,790,209 6,594,293 6,312,277 (282,016) 6,790,209 708,835 11.7% (46, 919) (11, 630) (18, 923) (153,431) 477,931 7.6% 0 64% of Total Personnel Cost Increase- Budget FY18 to Forecast FY17 - Personnel Costs (Wages, Continued) 7.67o Breakdown $477,931 Breakdown • 96.3% Regular Wages • $216,070 New Positions • 0.7% Vacation Sale • Accountant • Assistant General Manager • 0.2% Management Leave • $261,862 Unfilled Positions • 0.3% Floating Holiday • Assoc. Engineer • 2.4% Previously Funded by • Chief Water System Operator Penalties • Communications Manager • Customer Service Rep. 3 • Water Conservation Supervisor • (2) Maint. Distr. Operator 3 • Maint. Distr. Operator 3 • Management Analyst • Water Conservation Rep. 0 Meter Reader 1 �= Personnel Costs (Overtime 8 Stand-by) Overtime Paid for by Admin Penalties Total Overtime Standby Day Pay FY17 FY17 FY17 Budget Forecast Variance 189,278 192,007 2,729 1,971 3,698 1,727 187,306 195,705 4,456 32,100 32,100 FY18 Budget 211,343 211,343 32,100 Budget FY18 vs. Forecast FY17 Increase/ % (Decrease) Variance 19,336 10.1% (3,698) 15,638 8.0% 0 2% of Total Personnel Cost Increase- Budget FY18 to Forecast FY17 0.0% " Personnel Costs (OT/Standby, Continued) 8.0% Breakdown $15,638 Breakdown • 98.1 % Regular OT • $22,261 Increase due to • 1.9% Previously Funded by Emergency Call-Outs/On-going Penalties Projects, COLA/Merit increases • ($6,623) Reduction due to New & Filled Positions/Less Demand on Staff/Consultants CY16: 833 OT Hours due to Emergency Call -Outs Mandatory Benefits Ca I P ERS/SS/Medi care Unfunded Accrued Liability Workers Compensation Paid for by Admin Penalties Total Mandatory Benefits Personnel Costs (Mandatory Benefits) FY17 Budget 643,768 251,948 123,308 FY17 Forecast 636,400 251,948 129,806 16,662 1,019,024 1,034,816 FY17 Variance (7,368) 6,498 16,662 15,792 Budget FY18 vs. Forecast FY17 FY18 Increase/ % Budget (Decrease) Variance 657,731 319,813 149,702 1,127, 246 21,331 67,865 19,896 16,662 92,430 0 12% of Total Personnel Cost Increase- Budget FY18 to Forecast FY17 3.4% 26.9% 15.3% 8.9% Personnel "Costs (Mandatory Benefits, Continued) 8.9% Breakdown $92,430 Breakdown • 61.5% CalPERS/SS/Medicare • $21,331 CalPERS/SS/Medi. • 24.3% Unfunded Liability • $67,865 Unfunded Liability • 12.5% Workers Comp • $19,896 Workers Comp • 1.6% Previously Funded by • ($16,662) Previously Funded Penalties by Penalties ---r: _ Personnel Costs (Fringe Benefits) Budget FY18 vs. Forecast FY17 FY17 FY17 FY17 FY18 Increase/ % Budget Forecast Variance Budget (Decrease) Variance Fringe Benefits Medical/Dental/Vision 1,081,070 1,011,539 (69,531) 1,140,109 128,570 12.7% Certification/Class A Pay 19,950 18,543 (1,407) 19,788 1,245 6.7% Tuition Reimbursement 6,324 5,466 (857) 6,074 608 11.1% Other Insurances/Benefits* 145,103 125,599 (19,503) 154,515 28,916 23.0% Paid for by Admin Penalties 35,749 35,749 (35,749) Total Fringe Benefits 1,252,447 1,196,897 (55,550) 1,320,486 123,589 10.3% • 17% of Total Personnel Cost Increase- Budget FY18 to Forecast FY17 • * Includes: Life Insurance, AD&D Insurance, LT Disability, ST Disability, EAP, FSA, Deferred Compensation Match, Boot Allowance, Car Allowance r - Personnel Costs (Fringe Benefits., Continued) 10.317o Breakdown $123,589 Breakdown • 84.57 Medical/Dental/Vision $128,570 Medical/Dental • 10.57 Other Fringe Benefits $28,916 Other Fringe Benefits • 3.01 Previously Funded by ($35,749) Previously Funded Penalties by Penalties • 1.5% Cert/Class A Pay $1,245 Cert/Class A Pay • 0.51 Tuition Reimbursement $608 Tuition Reimbursement �= Personnel Costs (Other Benefits) Retiree Benefits OPEB Annual Required Contribution 1959 CaIPERS Survivor Benefit Replacement Benefit Plan Budget FY18 vs. Forecast FY17 FY17 FY17 FY17 FY18 Increase/ % Budget Forecast Variance Budget (Decrease) Variance 148,114 117,354 (30, 760) 145,244 27,890 23.8% 211,867 217,396 5,529 223,680 6,284 2.9% 3,000 5,025 2,025 4,000 (1,025) -20.4% 1,800 957 ( 843) 1,800 843 88.2% Unemployment Insurance 11,700 5,961 (5,739) 11,700 1 5,739 96.3% r Personnel -"Costs (Other Benefits, Continued) �o Breakdown of Total Personnel Costs • 4% Retiree Benefits • 0.8% OPEB Required Contribution • 0.7% Unemployment Insurance • 0.1 % Replacement Benefit Plan • -0.1 % 1959 CalPERS Survivor Benefit l - Personnel Costs Trends 10000000 10 Years of Actuals, Compared to FYI Forecast and FYI Budget +8.8% 9000000 +5.1% +4.1% +3.3% 8000000+4.2% 0 +3.5% +3.4% +1.1% 7000000 + 13.0% + 2.8% 6000000 +9.0% 5000000 4000000 � 3000000 2000000 1000000 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast* Budget* * Include reduction of Total Costs related to Net Pension/Liability/OPEB adjustments. Reduction reflected in Prior Year Actuals. 28 Revised Backup Material Distributed Less Than 72 Hours Prior to the Meeting Yorba Linda ... z _ __ ,�_ _�___ waver vlisvrl ct Budget Workshop #3 FY 2018 Presented By: Marc Marcantonio, General Manager Gina Knight, HR & Risk Manager Kelly McCann, Senior Accountant Cindy Botts, Management Analyst May 23, 2017 Revised Backup Material Distributed Less Than 72 Hours Prior to the Meeting Personnel Costs (Summary) Awl - r -A hedTor nfil d : z o is :• Total Wages Total Overtime Standby Day Pay Total Mandatory Benefits Total Fringe Benefits Retiree Benefits OPEB Annual Required Contribution 1959 CalPERS Survivor Benefit Replacement Benefit Plan Unemployment Insurance Total = EA Budget FY18 vs. Forecast FY17 FY17 FY17 Adj for Revised FY17 FY17 FY18 Increase/ Budget Forecast Unfilled Forecast Variance Budget (Decrease) Varianceol Positions 6,594,293 6,312,277 261,862 6,574,139 (20,154) 6,790,209 216,070 3.3% 187,306 195,705 195,705 8,399 211,343 15,638 8.0% 32,100 32,100 32,100 0 32,100 0 0.0% 1,019,024 1,034,816 1,034,816 15,792 1,127,246 92,430 8.9% 1,252,447 1,196,897 1,196,897 (55,550) 1,320,486 123,589 10.3% 148,114 117,354 117,354 (30, 760) 145,244 27,890 23.8 211,867 217,396 217,396 5,529 223,680 6,284 2.9% 3,000 5,025 5,025 2,025 4,000 (1,025) -20.4% 1,800 957 957 (843) 1,800 843 88.2% 11,700 5,961 5,961 (5,739) 11,700 5,739 96.3% 9,461,651 9,118,489 261,862 9,380,351 (81,301) 9,867,807 487,457 5.2% Revised Backup Material Distributed Less Than 72 Hours Prior to the Meeting Personnel Costs (OT/Standby, Continued)- REVISED I I 8.017o Breakdown 98.1% Regular OT 1.9% Previously Funded by Penalties $15.,638 Breakdown • $22,261 Increase due to I Emergency Call-Outs/On-going Projects, COLA/Merit increases • ($6,623) Reduction due to New &Filled Positions/Less Demand on Staff/Consultants CY16: 833 Emergency/ After -Hours Call -Outs Revised Backup Material Distributed Less Than 72 Hours Prior to the Meeting Capital -Related Expenditures- REVISED Capital Improvement Projects (CIP) $1.0M $0.8M $3.5M $3.4M .ow am Capital Outlay TOTAL: $0.2M $0.4M $1.6M $0.2M $0.1 M $1.1 M $0.6M $0.9m $0.8M $5.5m $2.4M Note: FY18 Budget does not include $3.9M in the CIP category that is funded out of the 2017A bonds. Backup Material Distributed Less Than 72 Hours Prior to the Meeting Revised Proposed CIP Budget for FY2018 Water Capital Reserve/Investment Acct Balance 4/30/2017 $15,626,730 Less Minimum Water Capital Reserve Requirement $1,820,000 Water Capital Funds Available for Use at 4/30/2017 $13,806,730 1 2 3 4 5 6 7 10 11 /-----------Total CIP Budget as Approved----------\ 5 Year CIP Budget For Expenditures for Approved Projects Recommended Forecast 5 Year CIP Budget Revised 5 Year Expenditures 7/1/16 Expenditures FY17 Projected FY18 Budgeted FY19 Budgeted FY20 Budgeted FY21 Budgeted FY22 Budgeted Through Budget For Adjustments to CIP Budget for 5/1/17 CIP CIP CIP CIP CIP CIP FY17 Listed CIP FY18 4/30/2017 Through Expenditures Expenditures Expenditures Expenditures Expenditures Expenditures Budgets 6/30/2017 Water Capital Projects A S&W Well Project(Well No.22) $ 2,500,000 $ $ 2,500,000 $ 24,184 $ 38,310 $ 62,494 $ 1,018,116 $ 90,000 $ 1,300,000 $ $ B Lakeview Grade Separation $ 662,444 $ 662,444 $ 6,740 $ 100,000 $ 106,740 $ 150,000 $ - $ - $ $ C Fairmont BPS Upgrade $ 7,830,005 $ 7,830,005 $ 1,095,522 $ 696,312 $ 1,791,834 $ 3,663,369 $ 2,009,824 $ - $ $ Subtotal $ 10,992,449 $ $ 10,992,449 $ 1,126,447 $ 834,622 $ 1,961,069 $ 4,831,485 $ 2,099,824 $ 1,300,000 $ $ Rehabilitation&Restoration D Timber Ridge BPS Rehabilitation $ 900,000 $ 900,000 $ - $ - $ - $ 90,000 $ 810,000 $ E Lakeview Booster Piping $ 154,000 $ 154,000 $ - $ $ - $ 38,500 $ 115,500 $ F PRS Rehabilitation Phase 2 $ 726,000 $ 726,000 $ 15,378 $ $ 15,378 $ 574,639 $ 140,000 $ - $ - $ G R&R Water&Sewer Investment $ 2,138,585 $ - $ - H Richfield Chlorination System $ - $250,000 $ 250,000 $ - $ $ $250,000 $ - $ $ $ I Well 20 On-Site Chlorine Generation System $ - $ $ $ $ $ $ $ J Chlorination System at CDB and HH Reservoirs $50,000 $ 50,000 $ $ $ $50,000 $ $ $ $ K North Palm Avenue Pipeline $ - $ $ $ $ $ $ $ L Susana,Bryant&John Bixby Pipelines 900,000 $ 900,000 $ $ $ $ 50,000 $ 850,000 $ $ $ M Replace old Cast Iron Pipelines(1920s to 1940s) 738,585 $ 738,585 $ $ $ $ 50,000 $ 688,585 $ $ $ N Camino Verde/South Ohio St Pipeline $ - $ $ $ $ - $ $ $ 0 Imperial Hwy Pipeline $ $ $ $ $ $ - $ $ P South Ohio St Pipeline $ $ $ $ $ $ $ Q Rose Drive Pipeline $ $ $ $ $ $ $ $ R San Antonio Pipeline $ $ $ $ $ $ $ $ S Valve Replacement inside Dist Reservoirs(10 valves) $ $ $ $ $ $ $ $ T PRS Rehabilitation Phase 3 $ $ $ $ $ $ $ $ U Sewer R&R(Relining) $200,000 $ 200,000 $ 18,422 $ $ 18,422 $ 100,000 $ 100,000 $ V R&R Subtotal $ 3,918,585 $2,138,585 $ 3,918,585 $ 33,800 $ $ 33,800 # $ 1,074,639 $ 1,778,585 $ 128,500 $ 925,500 $ Vehicle and Capital Equipment Replacement-Capital Outlav (Single Year Budget Forecast) W Vehicle&Capital Equipment Replacement-Sewer $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - X Vehicle&Capital Equipment Replacement-Water $ 963,000 $ 983,601 $ 1,946,601 $ 107,955 $ 642,646 $ 750,601 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Vehicle&Capital Equipment Subtotal $ 963,000 $ 983,601 $ 1,946,601 $ 107,955 $ 642,646 $ 750,601 $ 292,000 $ 260,000 $ 220,000 $ 262,000 $ 162,000 Subtotal $ 15,874,034 $ 3,122,186 $ 16,857,635 $ 1,268,202 $ 1,477,268 $ 2,745,470 $ 6,198,124 $ 4,138,409 $ 1,648,500 $ 1,187,500 $ 162,000 Total Project Over/(Under) Adjusted Total FY17 Projected Projects Completed in FY17 Budget CIP Budget CIP Budget FY17 FY16 Expenditures Y S&W Well Project(Well No.21) $ 2,306,789 $ $ 2,306,789 $ 335,084 $ 20,781 $ 355,865 Z Richfield Road Pipeline $ 1,450,000 $ $ 1,450,000 $ 643,489 $ 489,569 $ 1,133,058 AA 2015 Waterline Replacement $ 1,240,000 $ 1,240,000 $ 545,850 $ 545,850 AB TOTAL $ 4,996,789 $ $ 4,996,789 $ 1,524,423 $ 510,350 $ 2,034,773 # AC TOTAL $ 20,870,823 $ 3,122,186 $ 21,854,424 $ 2,792,626 $ 1,987,618 $ 4,780,243 # $ 6,198,124 $ 4,138,409 $ 1,648,500 $ 1,187,500 $ 162,000 AD Restricted Funds for Fairmont BPS(2017A Revenue Bonds) ($3,663,369) ($2,009,824) GRANDTOTAL $ 20,870,823 $ 3,122,186 $ 21,854,424 $ 2,792,626 $ 1,987,618 $ 4,780,243 # $ 2,534,755 $ 2,128,585 $ 1,648,500 $ 1,187,500 $ 162,000 AE Water Capital Reserves Available to Fund Future CIP(excludes Fairmont BPS) $ 11,819,112 $ 9,284,357 $ 7,155,772 $ 5,507,272 $ 4,319,772 $ 4,157,772 Notes: Reported on a Full Accrual Basis Current Year Projected Expenses include Vendor Costs and Internal Laboi Projected Available Balances do not include possible annual reserve transfers from Operating Func