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2019-04-23 - Board of Directors Meeting Agenda Packet
Yorba Linda Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS WORKSHOP MEETING Tuesday, April 23, 2019, 5:30 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Brooke Jones, President Phil Hawkins, Vice President Andrew J. Hall, Director J. Wayne Miller, Director Al Nederhood, Director 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. Summary of District's Draft Operating Budgets for Fiscal Years 2020-21 5.2. Estimated Costs for Strategic Plan Initiatives (Hall) 6. ADJOURNMENT 6.1. The next Regular Board Meeting will be held Tuesday, May 14, 2019. Closed Session (if necessary) will begin at 5:30 p.m. and regular business at 6:30 p.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meetinq 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: April 23, 2019 Subject: Summary of District's Draft Operating Budgets for Fiscal Years 2020-21 ATTACHMENTS: Name: Description: Type: Bud4et Workshop Presentation.odf Backup Material Backup Material FY VY21 - Budget - --- April 23, 2019 Presented by: Brett R. Barbre,Assistant General Manager Yorba Linda Water District � � OVERVIEW .................... � o � o00 ®O® 000 Supplies Schedule """"' ""' 8s Services of Fees ......... 4 Revenues �• & Variable Costs • a � O � CIP Salaries ............. •�'' & Related Volumetric Water Revenue FY20 & FY21 $3,000,000 — FY20: $25,000,000 $22,286,588.16 FY21: S $22,732,319.93 Sz,sao,aoo • • $2a,0o0,DC0 $2,000,00a • j • • $1s,00a,oaa ci • $1,sao,000 r • - a C 0 O $10,000,000 • aaj $1,000,000 } $500,000 • $5,000,000 • $ Abo $ FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN ■RES ■COM ■IRR •FY20 •FY21 Sewer Service Charges & Water Service Charges DISTRICT PROPERTY CUSTOMER FURNISHED FY21: Water SC CHIP 2' 'W" IN CURB FACE TO _ g" 6 l�J IDENTIFY POTABLEWATER r~- (J" �l �����/// SERVICE LOCATION � $10,114,891 �-- 7- C o �, ���� FY20: Water SCe 4'o°o° o 0 °ozi �l 5 $10,086,271 1A rlM.R FY21: Sewer SC $2,771,755 N FY20: Sewer SC n $2,745,837 �' Other Operating & Non-OperatingRevenues OTHER OPERATING0 I NON-OPERATING REVENUES: � � REVENUES: Revenue generated from the Revenue generated from District's other primary Xmeans outside of the business activities. OTHER OPERATING INTEREST PROPERTY NON-OPERATING District's normal scope of work. As an example, revenue from customer billing late As an example, interest fees, new customer account income, property tax set-up fees, plan check 8v income, and rental income inspection fees, and FOG FYE 19: FYE 19: FYE 19: FYE 19: (cell towers). fees. $993,202 $684,563 $1,077,314 $704,319 FY20: FY20: FY20: FY20: $964,708 $812,306 $1,820,471 $632,910 FY21: FY21: FY21: FY21: $1,017,210 $838,230 $1,850,000 $662,438 Operating $36,083,404 Total Revenues Non-Operating FY20 $3,265,687 OEM- TOTAL REVENUE FYE $39,349,091 Operating $34,229,047 9 Non-Operating $3,159,196 Operating $36,636,176 TOTAL REVENUE � $37,388,243 Non-Operating $3,350,669 TOTAL REVENUE $39,986,845 Variable & Fixed Costs OCWD Energy (Power) FYE19: $1,220,847.85 p R A N G F FY20: $1,394,861.53 OFY21: $1,370,950.22 C D Z OCWD R` '• `C Annexation Fee � FYE19: $456,771.00 OSS T R�G� FY20: $495,045.24 FY21: $504,946.14 Replenishment Assessment Fee FYE19: $7,227,471.00 FY20: $7,631,345.72 FY21: $8,143,968.46 Variable & Fixed Costs MWDOC Energy (Power) Connection Fee FYE19: $64,255.15 FYE19: $303,614.00 FY20: $51,357.15 FY20: $309,271.23 FY21: $61,890.70 FY21: $313,035.18 Capacity Charge & Tier 1: Treated Cost Readiness to Serve FYE19: $4,672,868.00 FYE19: $427,701.00 i FY20: $4,854,236.39 FY20: $374,693.00 FY21: $5,521,396.14 FY21: $374,693.00 Variable & Fixed Costs FY20 Tier 1:Treated Cast $4,854,23639 Connection Fee 32% ' $309,271.23 2% Capacity Fee $111,976.00 1% OCAnnexation Fee $495,045.24 3% Power:Wells Readiness-to-Serve $819,253.71 $262,717.00 5% 2% Power:GW Distribution $575,667.82 4% Power:IMP Distribution $51,357.15 0% Replenishment Assessment $7,631,34572 51% Variable & Fixed Costs FY21 Tier L Treated Cast $5,521,396.14 34% I Connection Fee $313,435.18 2% Capacity Fee $111,976.00 1% OC Annexation Fee $504,946.14 3% - Power:Wells Readiness-to-Serve $813,933.89 $262,717.00 5% 2% Power:GW Distribution $557,016.33 3% Power:IMP Distribution $61,890.70 G% Replenishment Assessment $8,143,968.46 5D% Salaries & Related $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 YE13 YE14 YE15 YE16 YE17 YE18 FY19 FY19 FY20 FY21 Actuals Actuals Actuals Actuals Actuals Actuals Budget Projected Proposed Proposed ■Emp Sal. BOD Sal. ■Fringe Benefits ■Mandatory Benefits ■Net Pension & OPEB Adj. Salaries vs # of Employees $9,000,000 100 $8,000,000 90 $7,000,000 80 70 $6,000,000 60 $5,000,000 0 50 $4,000,000 w 40 0 *k $3,000,000 30 $2,000,000 20 $1,000,000 10 $- J I I I I I I I 1 0 YE13 YE14 YE15 YE16 YE17 YE18 FY19 FY19 FY20 FY21 Actuals Actuals Actuals Actuals Actuals Actuals Budget Projected Proposed Proposed ■Emp Sal. BOD Sal. ♦#of payeess @ YE Budgeted Eligible Merit Increases ■ 0 Step: 0.00% ■ 1 Step: 2.50% ■ 2 Step: 5.00% 90 80 70 — 50 50 40 30 . 20 10 0 FY 2019 FY 2020 FY 2021 Budgeted CaIPERS Enrollments ■ FY 2017 ■ FY 2018 ■ FY 2019 ■ FY 2020 ■ FY 2021 1 45 40 40 d- 2%@55 2%@60 2%@62 Classic Tier 1 Classic Tier 2 PEPRA Tier 3 Budgeted CaIPERS Employer Contribution —m—Classic Tier 12%@55 Classic Tier 2 2%@60 — —PEPRA Tier 3 2%@62 10.900% 10.221% 8.880° 8.921% 9'409 ° 9.200% 8.099% � 7.61 .09999'6 8.563%2% 7.55316 7.500% 6.842% 6.985% 6.555°t 6.533% FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Supplies & Services W FY19 Forecast o FY20 Proposed Budget o FY21 Proposed Budget Vehicle Expenses Utilities Uncollectible Accounts i Travel&Conferences Training Professional services Office Expense Non-Capital Equipment Maintenance � n DistrictActivities,E m p Recognition Materials Insurance Board Election r.r.rt� Fees&Permits Dues&Memberships Data Processing r � Contractual services Communications $I $200,000 $400,000 $600,000 $800,000 $1,000,000 Supplies & Services W FY19 Forecast o FY20 Proposed Budget o FY21 Proposed Budget Vehicle Expenses — — — — Utilities I IUncollectible Accounts Travel&Conferences P — Training — IProfessional services Office Expense Non-Capital Equipment Maintenance DistrictActivities,E m p Becagnition — ( Materials— Insurance -— Board Election �� I Fees&Permits Dues&Memberships Data Processing - i Contractual Services ICom=unit=tio= $- $200,000 $400,000 $600,000 $800,000 $1,000,000 Capital Improvement Planning CUMULATIVE Budgeted CIP vs AMP CIP $45D00 000 Includinq Annual Carryovers $40,000,000 $35,000,000 $30,000,000 $28,150,764 $20,000,000 $22,647,999 $17,497,234 $15 000 ODD $11,607,030 � 55,125,500 $10'000'000 5417,000 $4,317,000 $8,82 2,000 $8,822,000 `$5,542,500 $10,000,000 418 470 $10,000, $7 114,796 $l0,Do0,00O O,OOD, $4,497,235 $10,000,ni ,0901000 $10,000,000 YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted ■Carryover Sewer Assessment Planning AREAS INCLUDED IN THE YLWD SEWER MASTER PLAN 2010 I NOT INCLUDED IN THE YLWD SEWER MASTER PLAN /-, DR- V 1 I II ILegend Sewer Drainage Boundary Drainage Area J CITY OF YORBA LINDA u DRAINAGE AREA 1 N DRAINAGE AREA 1.LOCKE RANCH DRAINAGE AREA 2 W I" S AA/AA+ RATING Days of Cash 365 days Debt Ratio 225% DO NOT MEET AA/AA+ RATING Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% REQUIRED RATE ADJUSTMENTS Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% Recommended 10% 10% Rate Adjustment Base Service Base Service REQUIRED RATE ADJUSTMENTS Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% Recommended 10% 10% Rate Adjustment Base Service Base Service 1" Meter $32.49/month $35.61/month $39.18/month Adjustment: $3.12/month $3.57/month REQUIRED RATE ADJUSTMENTS Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% Recommended 10% 10% Rate Adjustment Base Service Base Service 1" Meter $32.49/month $35.61/month $39.18/month Adjustment: $3.12/month $3.57/month Avg. 1" Monthly Bill $82 89/month $86.01/month $89.58/month @ 18 units Questions ? Further Discussion BACKUP MATERIALS DISTRIBUTED LESS THAN 72 HOURS PRIOR TO THE MEETING VY20 & IFY21 Itudget April 23, 2019 Presented by: Brett R. Barbre, Assistant General Manager Yorba Linda Water District Supplies & FY17 FYE18 FYE19 FY20 FY21 Actuals Actuals Projections Budget Budget Supplies & Services Communications $ 166,199 $ 225,887 $ 171,238 $ 240,095 $ 243,025 Contractual Services $ 440,313 $ 427,501 $ 432,794 $ 527,481 $ 525,306 Data Processing $ 271 ,760 $ 245,267 $ 298,030 $ 345,450 $ 319,300 Dues & Memberships $ 92,429 $ 86,335 $ 82,248 $ 84,580 $ 88,315 Fees & Permits $ 265,033 $ 262,813 $ 310,418 $ 305,780 $ 306,176 Board Election Expenses $ 129,971 $ - $ 56,712 $ - $ 90,000 Insurance $ 256,672 $ 269,236 $ 302,978 $ 327,385 $ 338,125 Materials $ 881 ,501 $ 826,105 $ 1 ,009,586 $ 1 ,013,400 $ 1,034,000 District Activities & Events $ 10,945 $ 36,239 $ 38,142 $ 46,635 $ 48,070 Maintenance $ 540,926 $ 513,950 $ 681 ,275 $ 736,300 $ 732,040 Non-Capital Equipment $ 173,707 $ 146,149 $ 171,800 $ 210,320 $ 163,220 Office Expense $ 39,159 $ 43,575 $ 38,433 $ 36,505 $ 36,375 Professional Services $ 613,289 $ 708,265 $ 431 ,917 $ 782,200 $ 982,400 Professional Development $ 45,159 $ 38,575 $ 62,942 $ 86,870 $ 79,695 Travel & Conferences $ 46,821 $ 88,338 $ 106,700 $ 149,160 $ 159,260 Uncollectible Accounts $ 9,041 $ 4,610 $ 4,268 $ 4,500 $ 5,100 Utilities $ 160,002 $ 185,196 $ 169,307 $ 192,750 $ 162,700 Vehicle Expenses $ 361 ,126 $ 321 ,118 $ 370,593 $ 376,700 $ 379,400 Supplies & Services Sub-Total $ 4,504,051 $ 4,429,159 $ 4,739,376 $ 5,466,111 $ 5,692,507 Slide 2 OVERVIEW C FOO 0z 000 4 : 000 . . . Supplies Schedule ,.••' '•••. & Services of Fees . . . . Revenues 8v Variable Costs . • .. ZZI CIP Salaries •''••. . .�'�� 8s Related :• April 23, 2019 Slide 3 Volumetric Water Revenue FYE191 FY20 & FY21 Monthly & Cumulative $5,000,000.00 $25,000,000.00 $4,500,000.00 $4,000,000.00 $20,000,000.00 FFYE19 $3,500,000.00 $20,722,235.00 W W z $3,000,000.00 $15,000,000.00 W W > W • Q" J $2,500,000.00 • j = a � z • 0 $2,000,000.00 $10,000,000.00 U $1,500,000.00 �i $1,000,000.00 _ $5,000,000.00 � $500,000.00 m o m o m o m o -1 m o -1 m o -1 m o m o r-I m o m o m o r-I m o rl N N r-I N N rl N N r-I N N rl N N r-1 N N rl N N r-I N N rl N N r-I N N rl N N r-1 N N } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL LL LL LL LL LL LL LL LL LL LL LL LL JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN M FYE19 •FYE19 Slide 4 Volumetric Water Revenue FYE19 FY20 & FY21 Monthly & Cumulative $5,000,000.00 $25,000,000.00 $4,500,000.00 $4,000,000.00 $20,000,000.00 FYE19 $3,500,000.00 $20,722,235.00 W W Z $3,000,000.00 $15,000,000.00 W W • > Q.' J $2,500,000.00 ! 7 Z � 0 $2,000,000.00 $10,000,000.00 u $1,500,000.00 $1,000,000.00 - � $5,000,000.00 $500,000.00 $ $- m rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL LL LL LL LL LL LL LL LL LL LL LL LL JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN ■FYE 19 ■FY20 •FYE 19 Slide 4 Volumetric Water Revenue FYE19 FY20 & FY21 Monthly & Cumulative $5,000,000.00 FY20 $25,000,000.00 I $22,286,588.16 $4,500,000.00 $4,000,000.00 $20,000,000.00 FYE19 $3,500,000.00 • $20,722,235.00 • • w W Z $3,000,000.00 $15,000,000.00 W • • W �. • • w J $2,500,000.00 • 7 z • • g 0 $2,000,000.00 $10,000,000.00 $1,500,000.00 $1,000,000.00 $5,000,000.00 Ziff $500,000.00 '- qE $ $- m rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN ■FYE19 ■FY20 0 FYIE19 FY20 Slide 4 Volumetric Water Revenue FYE19FY20 & FY21 Monthly & Cumulative $5,000,000.00 FY20 $25,000,000.00 I $22,286,588.16 $4,500,000.00 $4,000,000.00 $20,000,000.00 r YE19 $3,500,000.00 22,235.00 w W 2 $3,000,000.00 $15,000,000.00 W • • W • • W >; $2,500,000.00 • 7 Z 0 $2,000,000.00 $10,000,000.00 tou $1,500,000.00 74 '• $1,000,000.00 � . � _ _� $5,000,000.00 $500,000.00 '_ ■ rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN ■FYE19 ■FY20 ■FY21 •FYE19 FY20 Slide 4 Volumetric Water Revenue FYE19FY20 & FY21 Monthly & Cumulative FY21 $22,732,319.93 $5,000,000.00 FY20 $25,000,000.00 $22,286,588.16 $4,500,000.00 $4,000,000.00 $20,000,000.00 r$2722,235.001 YE19 $3,500,000.00 • • w W Z) $3,000,000.00 $15,000,000.00 wZ w7 LU J $2,500,000.00 • 7 Z 0 $2,000,000.00 , _ $10,000,000.00 u $1,500,000.00 , $1,000,000.00 _ - --- � $5,000,000.00 $500,000.00 - s N N m N N m N N m N N m N N m N N m N N m N N m N N m N N m N N m N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N r-I N N rl N N r-I N N rl N N } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL } LL LL LL LL LL LL LL LL LL LL LL LL LL LL JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 0 FYE19 0 FY20 0 FY21 0 FYE19 0 FY20 0 FY21 Slide 4 Water Service Charges & Sewer Service Charges $1070467253 $291887390 $1075817328 $1176737037 $2,421 ,665 $274477582 (includes 10% increase) (includes 10% increase) April 23, 2019 Slide 5 Other Operating & NonmOperationgRevenues OTHER OPERATING NON-OPERATING REVENUES: • I REVENUES: Revenue generated from the Revenue generated from District's other primary Xmeans outside of the business activities. OTHER OPERATING INTEREST PROPERTY NON-OPERATING District's normal scope of work. As an example, revenue from customer billing late As an example, property fees, new customer account tax income and rental set-up fees, plan check 8v income (cell towers). inspection fees, and FOG FYE19: FYE19: FYE19: FYE19: fees. $993,202 $684,563 $1,770,314 $704,319 FY20: FY20: FY20: FY20: $964,708 $812,306 $1,820,471 $632,910 FY21: FY21: FY21: FY21: $1,017,210 $838,230 $1,850,000 $662,438 April 23, 2019 Slide 6 Operating $36,578,461 Total Revenues Non-Operating FY20 $3,265,687 TOTAL REVENUE FYE $39,844,148 Operating $34,229,047 9 Non-Operating April 23, 2019 $3,159,196 Operating $38,194,322 TOTAL REVENUE ``' $37,388,243 Non-Operating $3,350,669 TOTAL REVENUE $41,544,991 Slide Variable & Fixed Costs OCWD Energy (Power) FYE19: $1,220,847.85 �R A � G� FY20: $1,394,861.53 �a. z FY21: $1,370,950.22 Annexation Fee '� FYE19: $456,771.00 Replenishment Assessment Fee FY20: $495,045.24 FYE19: $7,227,471.00 FY21: $504,946.14 FY20: $7,631,345.72 FY21: $8,143,968.46 April 23, 2019 .- Variable & Fixed Costs MWDOC Energy (Power) Connection Fee FYE19: $64,255. 15 FYE19: $303,614.00 FY20: $51,357. 15 FY20: $309,271.23 FY21: $61,890.70 FY21: $313,035. 18 Capacity Charge & Tier 1: Treated Cost Readiness to Serve FYE19: $41672,868.00 FYE19: $427,701.00 FY20: $4,854,236.39 FY20: $374,693.00 MW FY21: $515211396. 14 FY21: $3741693.00 April 23, 2019 Slide 9 Variable & Fixed Costs FY20 Tier 1:Treated Cast $4,854,236.39 Connection Fee 32% $309,271.23 2% Capacity Fee $111,976.00 1% OC Annexation Fee $495,045.24 3% Power:Wells Readiness-to-Serve $819,253.71 $262,717.00 5% 2% Power:GW Distribution $575,607.81 4% Power:IMP Distribution $51,357.15 0% Replenishment Assessment $7,631,345.72 51% , — — April 23, 2019 Slide 10 Variable & Fixed Costs FY21 Tier 1:Treated Cast $5,521,396.14 34% I Connection Fee $313,035.18 2% Capacity Fee $111,976.00 1% OC Annexation Fee $504,946.14 390 Power:Wells Readiness-to-Serve $813,933.89 $262,717.00 5% 2% Power:GW Distribution $557,016.33 3% Power:IMP Distribution $61,890.70 0% Replenishment Assessment $8,143,968.46 50% April 23, 2019 Slide 11 Salaries & Related ■ Em p Sal. BOD Sal. ■ Fringe Benefits Mandatory Benefits ■ Net Pension & OPEB Adj. $14,000,000 $12,000,000 $10,000,000 $8,000,000 $5,000,000 ■ $4,000,000 $2,000,000 YE13 YE14 YE15 YE15 YE17 YE18 FY19 FY19 FY20 FY21 Actuals Actuals Actuals Actuals Actuals Actuals Budget Projected Proposed Proposed $(2,000,000) April 23, 2019 Slide 12 Salaries vs # of Em ployees ■ Em p Sal. BOD Sal. ♦#of payees @ YE $9,000,000 100 $8,000,000 90 $7,000,000 80 70 $5,000,000 50 $5,000,000 E 5© M LU $4,000,000 46 c 40 *� $3,000,000 30 $2,000,000 20 $1,000,000 14 $- 0 YE13 YE14 YE15 YE15 YE17 YE18 FY19 FY19 FY20 FY21 Actuals Actuals Actuals Actuals Actuals Actuals Budget Projected Proposed Proposed April 23, 2019 Slide 13 Budgeted Eligible Merit Increases ■ 0 Step ■ 15tep 2 Steps 0.00% 2.50% 5.00% 90 0 70 Lu 60 37 43 5o CL Lu 40 U- 0 0 30 20 30 31 10 21 0 FY 2019 FY 2020 FY 2021 April 23, 2019 Slide 14 Budgeted CaIPERS Enrollments ■ FY 2017 ■ FY 2018 FY 2019 FY 2020 ■ FY 2021 45 40 35 29 6 6 2% @ 55 2% @ 60 2%@ 62 Classic Tier 1 Classic Tier 2 PEPRA Tier 3 April 23, 2019 Slide 15 Budgeted CaIPERS Em Contribution ployer —m--Ciassic Tier 1 —m--Classic Tier 2 —a—PEPRA Tier 3 2% [ya 55 2% @ 60 2% @ 62 10.900% 10.221% '0 9,409% 8.880% 8.921% 9.200% 8.563% ammoom MMM-MME 8.099% 7,612% 7.553% 7.500% no— — 6.985% �M 6.842% 5.555% 6.533% t 5 IP- FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 April 23, 2019 Slide 16 prove Ca ital Imment p Planning Asset Management Plan (AMP) $ 1 Billion Infrastructure • 100 years = $10 million/year • 50 years = $20 million/year A' . WNW- April 23, 2019 Slide 17 prove Ca ital Imment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 5- $(5,000,000) s(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital Imment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $5,542,500 $10,000,000 $(5,000,000) s(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital Imment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 - $15,000,000 — $10,000,000 $5,000,000 $5,542,500 $10,000,000 $(5,125,500) $[5,125,500] $(5,000,000) s(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m m ent p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000000 $15,000,000 $10,000,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 $(5,125,500) $(5,125,500) $(5,000,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000 000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $10,000,000 $417,000 $5,000,000 $5,542,500 $10,000,000 57,418,470 510,000,000 $(5,125,500) $(5,125,500) $(5,o00,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000 000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,123,500 $10,000,000 $417,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 $(5,125,500) $(5,125,500) ${3,518,470} $(3,518,470) $(5,o00,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000 000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,123,500 $10,000,000 $417,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 $7,114,796 $10,001),000 $(5,125,500) $(5,125,500) ${3,518,470} $(3,518,470) $(5,o00,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000 000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $10,000,000 $417,000 $4,317,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 $7,114,191, $10,001),060 $(5,125,500) $(5,125,500) ${3,518,470} $(3,518,470) $(5,o00,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000 000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $10,000000 $417,000 $4,317,000 MW $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 $7,114,796 $10,000,000 $(5,125,500) $(5,125,500) $(3,518,470) $(3,518,470) $[4,109,796] $(4,109,796) $(5,o00,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $10,000,000 $417,000 $4,317,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 "$7,114,796 $10,00(),000 $6,349,235 $10,000,000 $(5,125,500) $(5,125,500) $(3,518,470) $(3,518,470) $[4,109,796] $(4,109,796) $(5,o00,000) $(10,000,000) YLWO AMP YLWD AMP YLWD AMP YLWD AMP YLWU AMP YLWO AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 $10,000,000 $417,000 $4,317,000 $7,322,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 "$7,114,796 $10,00(),000 $6,349,235 $10,000,000 $(5,125,500) $(5,125,500) $(3,518,470) $(3,518,470) $[4,109,796] $(4,109,796) $(5,o00,000) $(10,000,000) YLWO AMP YLWD AMP YLWD AMP YLWD AMP YLWU AMP YLWO AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 $10,000,000 $417,000 $4,317,000 $7,322,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 "$7,114,796 $10,00(),000 $6,349,235 $10,000,000 $(5,125,500) $(5,125,500) ${3,518,470) $(3,518,470} $[4,109,796] $(4,109,796) $(4,849,235) $(4,849,235) $(5,000,000) $(10,000,000) YLWO AMP YLWD AMP YLWD AMP YLWD AMP YLWU AMP YLWO AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000 000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 $10,000,000 $417,000 $4,317,000 $7,322,000 $5,000,000 — $5,542,500 $10,000,000 $7,418,470 $10,000,000 $7,114,796 $10,600,000 $6,349,235 $10,000,000 $4,497,235 $10,000,000 $(5,125,500) $(5,125,500) ${3,518,470) $(3,518,470} $[4,109,796] $(4,109,796) $(4,849,235) $(4,849,235) $(5,000,000) $(10,000,000) YLW6 AMP YLWD AMP YLW6 AMP YLWD AMP YLWU AMP YLW❑ AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000 000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 522,647,999 $10,000,000 $417,000 $4,317,000 $7,322,000 $5,000,000 — $8,822,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 $7,114,796 $10,600,000 $6,349,235 $10,000,000 $4,497,235 $10,000,000 $(5,125,500) $(5,125,500) ${3,518,470) $(3,518,470} $[4,109,796] $(4,109,796) $(4,849,235) $(4,849,235) $(5,000,000) $(10,000,000) YLW6 AMP YLWD AMP YLW6 AMP YLWD AMP YLWU AMP YLWO AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 522,647,999 $10,000,000 $417,000 $4,317,000 $7,322,000 $5,000,000 — $8,822,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 "$7,114,796 $10,00(),000 $6,349,235 $10,000,000 $4,497,235 $10,000,000 $(5,125,500) $(5,125,500) ${3,518,470) $(3,518,470} $[4,109,796] $(4,109,796) $(4,849,235) $(4,849,235) $(4,497,235) $(4,497,235) $(5,000,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,ovo $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 522,647,999 $10,000,000 $417,000 $4,317,000 $7,322,000 $5,000,000 — $8,822,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 "$7,114,796 $10,00(),000 $6,349;235 $10,000,000 $4,497,235 $10,000,000 $5,090,000 $10,000,000 $(5,125,500) $(5,125,500) ${3,518,470) $(3,518,470} $[4,109,796] $(4,109,796) $(4,849,235) $(4,849,235) $4,497,235} $4,497,235} $(5,000,000) $(10,000,000) YLWO AMP YLWO AMP YLWO AMP YLWO AMP YLWU AMP YLWO AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 S22,647,999 $28,150,764 $10,000,000 $417,000 $4,317,000 $7,322,000 $5,000,000 — $8,822,000 $8,822,D00 $5,542,500 $10,000,000 $7,418,470 $10,000,000 "$7,114,796 $10,00(),000 $6,349,235 $10,000,000 $4,497,235 $10,000,000 $5,090,000 $10,000,000 $(5,125,500) $(5,125,500) ${3,518,470) $(3,518,470} $[4,109,796] $(4,109,796) $(4,849,235) $(4,849,235) $(4,497,235) $(4,497,235) $(5,000,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 prove Ca ital I m ment p Planning CUMULATIVE Budgeted CIP vs AMP CIP $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,125,500 $11,607,030 $17,497,234 $22,647,999 $28,150,764 $10,000,000 54 a.7,000 . $4,317.000 $7,322,000 $8,822,000 $8,822,000 $5,000,000 $5,542,500 $10,000,000 $7,418,470 $10,000,000 $7,114,796 $10,000,000 $6,349,235 $10,000,000 $4,497,235 $10,000,000 $5,090,000 $10,000,000 $(5,125,500) $(5,125,500) $(3,518,470) $(3,518,470) $(4,109,796) ${4,109,796} $(4,849,235) $(4,849,235) $4,497,235) $4,497,235} ${5,090,000) $5,090,000) $(5,000,000) $(10,000,000) YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP YLWD AMP FY19 FY20 FY21 FY22 FY23 FY24 ■Budgeted Completed Carryover April 23, 2019 Slide 18 Sewer Assessment Planning LAMBERT RD I YORBA LINDA WATER DISTRICT _BIRCH ST—r R°--- SEWER SERVICE BOUNDARY -- �GOLDEN AVE O H wI BASTANCHnRYRD �� I a� - w l � O I T I w' I, �•-1„-� 1 9 YI I YI OI ��•� YORBRLINDABLVD yORBA LINDA BLVD i' S� a _ _ i BUENA VISTA AVE i I Fp 94 .HAPMAN AVE �` o IFr aiANG Of V i ��A n9 , � MIRALCMA AVE LA PALMA AVE a - �f SANTA ANA CAN" LEGEND N C3YLWD Sewer Service Boundary �fE =ASSESSED AREA in 2010 YLWD SEWER MASTER PLAN AREA NOT INCLUDED IN 2010 YLWD SEWER MASTER PLANT S April 23, 2019 Slide 19 AA/ AA+ RA'T'ING MM. _ Days of Cash 365 days Debt Ratio 225% April 23, 2019 Slide 20 DO NOT MEET AA/ AA+ RA'T'ING Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% April 23, 2019 Slide 20 RECOMMENDED RA'T'E ADJUS'T'MEN'T'S Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% Recommended 10% 10% Rate Adjustment Base Service Base Service April 23, 2019 Slide 20 RECOMMENDED RA'T'E ADJUS'T'MEN'T'S Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% Recommended 10% 10% Rate Adjustment Base Service Base Service 1 " Meter $32.49/month $35.61/month $39. 18/month Adjustment: $3. 12/month $3.57/month April 23, 2019 Slide 20 RECOMMENDED RA'T'E ADJUS'T'MEN'T'S Days of Cash 365 days 351 days 352 days Debt Ratio 225% 216% 178% Recommended 10% 10% Rate Adjustment Base Service Base Service 1 " Meter $32.49/month $35.61/month $39. 18/month Adjustment: $3. 12/month $3.57/month Avg. 1 " Monthly Bill $82 89/month $86.01/month $89.58/month @ 18 units April 23, 2019 Slide 20 Questions ? Further Discussion YLWD 5 YEAR CIP - WATER AND SEWER DRAFT VERSION 1, 04/23/19 FY20 FY21 FY22 FY23 FY24 Capital and Rehabilitation and Replacement(R&R) Proiects Comments PH&S Mickel and Camino Verde Waterline Replacement Fire flow deficient and failing pipes $ 600,000 PH&S Lakeview Booster Pump Station Piping(Water Quality) Problems maintaining chlorine residual $ 200,000 PH&S Timber Ridge BPS Replacement Failed pump and natural gas engine. Parts no longer available. Feeds fire interface area. $ 400,000 $ 1,200,000 PH&S Hidden Hills BPS Upgrades Not included in Cielo Vista Project. Required for fire protection for 1000 zone and above $ 300,000 PH&S Ridgeway Waterline Replacement Extensive leak history on old pipes and remove meter clusters in backyard $ 700,000 PH&S Avolinda and Imperial Waterline Replacement Broken valves and leak history.Abandon Imperial and realign in other streets. $ 1,300,000 Reg Site and Security Upgrades at District Facilities(Bioterrorism Act of 2002) Cyber Security, Natural Disasters,Terrorism Protection $ 500,000 $ 500,000 $ 500,000 $ 500,000 R&R Well 22 Equipping Replaces aging wells $ 1,300,000 R&R Field Headquarters Rehabilitation (HVAC, Roof, Paving) Leaking roof, HVAC is beyond useful life, deteriorating pavement/concrete $ 500,000 R&R Meter Conversion Project(AMI) Meter replacement program of meters that are beyond useful life $ 2,000,000 $ 1,500,000 $ 1,500,000 R&R Well Equipment Rehabilitation Extend useful life of well $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 R&R Reservoir Operational Repair and Replacement Included in AMP $ 100,000 $ 100,000 $ 100,000 $ 100,000 R&R Box Canyon Pump 2 Replacement Operational inefficiency $ 70,000 R&R Apple Creek and Del Rey PRS Replacement Included in AMP $ 450,000 R&R Dominguez Hills and Paseo Del Prado PRS Replacement Included in AMP $ 600,000 R&R Waterline Replacement Included in AMP $ 2,000,000 $ 2,000,000 $ 2,000,000 R&R Richfield Chemical System Replacement Included in AMP $ 800,000 R&R Well 20 Chemical System Replacement Included in AMP $ 400,000 R&R Well 23 Future groundwater well source $ 900,000 R&R Lakeview Chemical System Replacement Included in AMP R&R Pump Station Rehabilitation Included in AMP R&R Pressure Regulating Station (PRS) Replacement Included in AMP EP Reservoir Fire Hardening(4 sites) Fire Protection $ 500,000 SLI Water Supply Redundancy and Fire Flow Reliability(5 sites) Reliability Sewer Pipe Relining and Manhole Rehabilitation Based on CCTV inspection and also included in AMP $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 Capitalized Labor $ 600,000 $ 617,000 $ 565,000 $ 390,000 $ 440,000 Capital and R&R Projects Subtotal = $ 6,600,000 $ 6,787,000 $ 6,215,000 $ 4,290,000 $ 4,840,000 Water Only= $ 6,250,000 $ 6,437,000 $ 5,865,000 $ 3,940,000 $ 4,490,000 Vehicle and Capital Equipment Replacement SCADA Radio Communications System Enhancement $ 175,000 IT Capital Outlay $ 187,425 $ 196,796 $ 262,235 $ 272,235 $ 300,000 Operations Capital Outlay $ 806,045 $ 481,000 $ 222,000 $ 285,000 $ 300,000 Vehicle Replacement-Sewer $ 475,000 Vehicle&Capital Equipment Subtotal= $ 1,168,470 $ 677,796 $ 959,235 $ 557,235 $ 600,000 TOTAL= $ 7,768,470 $ 7,464,796 $ 7,174,235 $ 4,847,235 $ 5,440,000 Water TOTAL= 5-YEAR CIP TOTAL= $ 32,694,736 Note:All costs are 2019 dollars and do not include escalation. PH&S = Public Health and Safety Reg = Regulatory R&R = Repair and Replace EP = Emergency Preparedness SLI =System Upgrade YLWD 5 YEAR CIP - WATER AND SEWER FY20 FY21 FY22 FY23 FY24 DRAFT VERSION 2, 04/23/19 (10r rate increase) Comment Capital and Rehabilitation and Replacement(R&R) Proiects PH&S Mickel and Camino Verde Waterline Replacement Fire flow deficient and failing pipes $ 600,000 PH&S Lakeview Booster Pump Station Piping(Water Quality) Problems maintaining chlorine residual $ 200,000 PH&S Timber Ridge Pump 4 Replacement Failed pump and natural gas engine. Parts no longer available. Feeds fire interface area. $ 300,000 PH&S Hidden Hills BPS Upgrades Not included in Cielo Vista Project. Required for fire protection for 1000 zone and above $ 300,000 PH&S Ridgeway Waterline Replacement Extensive leak history on old pipes and remove meter clusters in backyard $ 700,000 PH&S Avolinda and Imperial Waterline Replacement Broken valves and leak history.Abandon Imperial and realign in other streets. $ 1,300,000 Reg Site and Security Upgrades at District Facilities(Bioterrorism Act of 2002) Cyber Security, Natural Disasters,Terrorism Protection $ 500,000 $ 500,000 $ 500,000 $ 500,000 R&R Well 22 Equipping Replaces aging wells $ 900,000 R&R Field Headquarters Rehabilitation (HVAC, Roof, Paving) Leaking roof, HVAC is beyond useful life, deteriorating pavement/concrete $ 500,000 R&R Mete.G,....,,.. ien Project (AM- Meter replacement program of meters that are beyond useful life R&R Well Equipment Rehabilitation Extend useful life of well $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 R&R Reservoir Operational Repair and Replacement Included in AMP $ 100,000 $ 100,000 $ 100,000 $ 100,000 R&R Box Canyon Pump 2 Replacement Operational inefficiency $ 70,000 R&R Apple Creek and Del Rey PRS Replacement Included in AMP $ 450,000 R&R Dominguez Hills and Paseo Del Prado PRS Replacement Included in AMP $ 600,000 R&R Waterline Replacement Included in AMP $ 2,000,000 $ 2,000,000 $ 2,000,000 R&R Richfield Chemical System Replacement Included in AMP $ 800,000 R&R Well 20 Chemical System Replacement Included in AMP $ 400,000 R&R Well 23 Future groundwater well source R&R Lakeview Chemical System Replacement Included in AMP R&R Pump Station Rehabilitation Included in AMP R&R Pressure Regulating Station (PRS) Replacement Included in AMP EP Reservoir Fire Hardening(4 sites) Fire Protection $ 500,000 SU Water Supply Redundancy and Fire Flow Reliability(5 sites) Reliability Sewer Pipe Relining and Manhole Rehabilitation Based on CCTV inspection and also included in AMP $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 Capitalized Labor $ 225,000 $ 312,000 $ 565,000 $ 390,000 $ 440,000 Capital and R&R Projects Subtotal = $ 2,825,000 $ 3,782,000 $ 4,715,000 $ 4,290,000 $ 4,840,000 Water Only= $ 2,475,000 $ 3,432,000 $ 4,365,000 $ 3,940,000 $ 4,490,000 Vehicle and Capital Equipment Replacement SCADA Radio Communications System Enhancement $ 175,000 IT Capital Outlay $ 187,425 $ 196,796 $ 262,235 $ 272,235 $ 300,000 Operations Capital Outlay $ 681,045 $ 481,000 $ 222,000 $ 285,000 $ 300,000 Vehicle Replacement-Sewer $ 475,000 Vehicle&Capital Equipment Subtotal= $ 1,043,470 $ 677,796 $ 959,235 $ 557,235 $ 600,000 TOTAL= $ 3,868,470 $ 4,459,796 $ 5,674,235 $ 4,847,235 $ 5,440,000 Water TOTAL= 5-YEAR CIP TOTAL= $ 24,289,736 Note:All costs are 2019 dollars and do not include escalation. PH&S = Public Health and Safety Reg = Regulatory R&R = Repair and Replace EP = Emergency Preparedness SU =System Upgrade YLWD 5 YEAR CIP - WATER AND SEWER FY20 FY21 FY22 FY23 FY24 DRAFT VERSION 3, 04/23/19 (5i rate increase) Comment Capital and Rehabilitation and Replacement(R&R) Proiects PH&S Mickel and Camino Verde Waterline Replacement Fire flow deficient and failing pipes $ 600,000 PH&S Lakeview Booster Pump Station Piping(Water Quality) Problems maintaining chlorine residual $ 200,000 PH&S Timber Ridge Pump 4 Replacement Failed pump and natural gas engine. Parts no longer available. Feeds fire interface area. $ 300,000 PH&S Hidden Hills BPS Upgrades Not included in Cielo Vista Project. Required for fire protection for 1000 zone and above $ 300,000 PH&S Ridgeway Waterline Replacement Extensive leak history on old pipes and remove meter clusters in backyard $ 280,000 $ 420,000 PH&S Avolinda and Imperial Waterline Replacement Broken valves and leak history.Abandon Imperial and realign in other streets. $ 1,300,000 Reg Site and Security Upgrades at District Facilities(Bioterrorism Act of 2002) Cyber Security, Natural Disasters,Terrorism Protection $ 500,000 $ 500,000 $ 500,000 R&R Well 22 Equipping Replaces aging wells $ 900,000 R&R Field Headquarters Rehabilitation (HVAC, Roof, Paving) Leaking roof, HVAC is beyond useful life, deteriorating pavement/concrete $ 120,000 $ 380,000 R&R Meter Conversion o., eet(Anon Meter replacement program of meters that are beyond useful life R&R Well Equipment Rehabilitation Extend useful life of well $ 150,000 $ 150,000 $ 150,000 $ 150,000 R&R Reservoir Operational Repair and Replacement Included in AMP $ 200,000 $ 100,000 $ 100,000 R&R Box Canyon Pump 2 Replacement Operational inefficiency $ 70,000 R&R Apple Creek and Del Rey PRS Replacement Included in AMP $ 450,000 R&R Dominguez Hills and Paseo Del Prado PRS Replacement Included in AMP $ 600,000 R&R Waterline Replacement Included in AMP $ 2,000,000 $ 2,000,000 $ 2,000,000 R&R Richfield Chemical System Replacement Included in AMP $ 800,000 R&R Well 20 Chemical System Replacement Included in AMP $ 400,000 R&R Well 23 Future groundwater well source R&R Lakeview Chemical System Replacement Included in AMP R&R Pump Station Rehabilitation Included in AMP R&R Pressure Regulating Station (PRS) Replacement Included in AMP EP Reservoir Fire Hardening(^ sites) Fire Protection SU Water Supply Redundancy and Fire Flow Reliability(5 sites) Reliability Sewer Pipe Relining and Manhole Rehabilitation Based on CCTV inspection and also included in AMP $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 Capitalized Labor $ 225,000 $ 202,000 $ 575,000 $ 390,000 $ 440,000 Capital and R&R Projects Subtotal = $ 1,945,000 $ 2,432,000 $ 5,695,000 $ 4,290,000 $ 4,840,000 Water Only= $ 1,595,000 $ 2,082,000 $ 5,345,000 $ 3,940,000 $ 4,490,000 Vehicle and Capital Equipment Replacement SCADA Radio Communications System Enhancement $ 175,000 IT Capital Outlay $ 187,425 $ 196,796 $ 262,235 $ 272,235 $ 300,000 Operations Capital Outlay $ 681,045 $ 481,000 $ 222,000 $ 285,000 $ 300,000 Vehicle Replacement-Sewer $ 475,000 Vehicle&Capital Equipment Subtotal= $ 1,043,470 $ 677,796 $ 959,235 $ 557,235 $ 600,000 TOTAL= $ 2,988,470 $ 3,109,796 $ 6,654,235 $ 4,847,235 $ 5,440,000 VVatar Tr%TAI 5-YEAR CIP TOTAL= $ 23,039,736 Note:All costs are 2019 dollars and do not include escalation. PH&S = Public Health and Safety Reg = Regulatory R&R = Repair and Replace EP = Emergency Preparedness SU =System Upgrade YLWD 15 YEAR CIP-WATER AND SEWER DRAFT VERSION 1, 04/23/19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 Capital and Rehabilitation and Replacement(R&Rl Proiects PH&S Mickel and Camino Verde Waterline Replacement $ 600,000 PH&S Lakeview Booster Pump Station Piping(Water Quality) $ 200,000 PH&S Timber Ridge BPS Replacement $ 400,000 $ 1,200,000 PH&S Hidden Hills BPS Upgrades $ 300,000 PH&S Ridgeway Waterline Replacement $ 700,000 PH&S Avolinda and Imperial Waterline Replacement $ 1,300,000 Reg Site and Security Upgrades at District Facilities(Bioterrorism Act of 2002) $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 R&R Well 22 Equipping $ 1,300,000 R&R Field Headquarters Rehabilitation(HVAC,Roof,Paving) $ 500,000 R&R Meter Conversion Project(AMI) $ 2,000,000 $ 1,500,000 $ 1,500,000 R&R Well Equipment Rehabilitation $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 R&R Reservoir Operational Repair and Replacement $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 R&R Box Canyon Pump 2 Replacement $ 70,000 R&R Apple Creek and Del Rey PRS Replacement $ 450,000 R&R Dominguez Hills and Paseo Del Prado PRS Replacement $ 600,000 R&R Waterline Replacement $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 R&R Richfield Chemical System Replacement $ 800,000 R&R Well 20 Chemical System Replacement $ 400,000 R&R Well 23 $ 900,000 $ 1,400,000 R&R Lakeview Chemical System Replacement $ 400,000 R&R Pump Station Rehabilitation $ 900,000 $ 1,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 R&R Pressure Regulating Station(PRS)Replacement $ 300,000 $ 300,000 $ 500,000 $ 60,000 $ 250,000 $ 250,000 $ 350,000 EP Reservoir Fire Hardening(4 sites) $ 500,000 SU Water Supply Redundancy and Fire Flow Reliability(5 sites) $ 500,000 $ 500,000 $ 500,000 $ 500,000 Sewer Pipe Relining and Manhole Rehabilitation $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Capitalized Labor $ 600,000 $ 617,000 $ 565,000 $ 390,000 $ 440,000 $ 590,000 $ 360,000 $ 460,000 $ 390,000 $ 380,000 $ 1,075,000 $ 1,031,000 $ 1,250,000 $ 1,250,000 $ 1,210,000 Capital and R&R Projects Subtotal = $ 6,600,000 $ 6,787,000 $ 6,215,000 $ 4,290,000 $ 4,840,000 $ 6,490,000 $ 3,960,000 $ 5,060,000 $ 4,290,000 $ 4,180,000 $ 11,825,000 $ 11,341,000 $ 13,750,000 $ 13,750,000 $ 13,310,000 Water Only= $ 6,250,000 $ 6,437,000 $ 5,865,000 $ 3,940,000 $ 4,490,000 $ 6,140,000 $ 3,610,000 $ 4,710,000 $ 3,940,000 $ 3,830,000 $ 11,325,000 $ 10,841,000 $ 13,250,000 $ 13,250,000 $ 12,810,000 Vehicle and Capital Eauioment Replacement SCADA Radio Communications System Enhancement $ 175,000 IT Capital Outlay $ 187,425 $ 196,796 $ 262,235 $ 272,235 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Operations Capital Outlay $ 806,045 $ 481,000 $ 222,000 $ 285,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Vehicle Replacement-Sewer $ 475,000 Vehicle&Capital Equipment Subtotal= $ 1,168,470 $ 677,796 $ 959,235 $ 557,235 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 TOTAL= $ 7,768,470 $ 7,464,796 $ 7,174,235 $ 4,847,235 $ 5,440,000 $ 7,090,000 $ 4,560,000 $ 5,660,000 $ 4,890,000 $ 4,980,000 $ 12,625,000 $ 12,141,000 $ 14,550,000 $ 14,550,000 $ 14,110,000 15-YEAR CIP TOTAL= $ 127,850,736 Note:All costs are 2019 dollars and do not include escalation. PH&S=Public Health and Safety Reg=Regulatory R&R=Repair and Replace EP=Emergency Preparedness SU=System Upgrade YLWD 15 YEAR CIP-WATER AND SEWER DRAFT VERSION 2, 04/23/19(10i rate increase) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 Capital and Rehabilitation and Replacement(R&Rl Proiects PH&S Mickel and Camino Verde Waterline Replacement $ 600,000 PH&S Lakeview Booster Pump Station Piping(Water Quality) $ 200,000 PH&S Timber Ridge Pump 4 Replacement $ 300,000 PH&S Hidden Hills BPS Upgrades $ 300,000 PH&S Ridgeway Waterline Replacement $ 700,000 PH&S Avolinda and Imperial Waterline Replacement $ 1,300,000 Reg Site and Security Upgrades at District Facilities(Bioterrorism Act of 2002) $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 R&R Well 22 Equipping $ 900,000 $ 400,000 R&R Field Headquarters Rehabilitation(HVAC,Roof,Paving) $ 500,000 R&R Meter Convers on Project(AMI) R&R Well Equipment Rehabilitation $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 R&R Reservoir Operational Repair and Replacement $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 R&R Box Canyon Pump 2 Replacement $ 70,000 R&R Apple Creek and Del Rey PRS Replacement $ 450,000 R&R Dominguez Hills and Paseo Del Prado PRS Replacement $ 600,000 R&R Waterline Replacement $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 R&R Richfield Chemical System Replacement $ 800,000 R&R Well 20 Chemical System Replacement $ 400,000 R&R Well 23 $ 900,000 $ 1,400,000 R&R Lakeview Chemical System Replacement $ 400,000 R&R Pump Station Rehabilitation $ 900,000 $ 1,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 R&R Pressure Regulating Station(PRS)Replacement $ 300,000 $ 300,000 $ 500,000 $ 60,000 $ 250,000 $ 250,000 $ 350,000 EP Reservoir Fire Hardening(4 sites) $ 500,000 SU Water Supply Redundancy and Fire Flow Reliability(5 sites) $ 500,000 $ 500,000 $ 500,000 $ 500,000 Sewer Pipe Relining and Manhole Rehabilitation $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Capitalized Labor $ 225,000 $ 312,000 $ 565,000 $ 390,000 $ 440,000 $ 590,000 $ 360,000 $ 460,000 $ 390,000 $ 380,000 $ 1,075,000 $ 1,031,000 $ 1,250,000 $ 1,250,000 $ 1,210,000 Capital and R&R Projects Subtotal = $ 2,825,000 $ 3,782,000 $ 4,715,000 $ 4,290,000 $ 4,840,000 $ 6,390,000 $ 5,360,000 $ 5,060,000 $ 4,290,000 $ 4,180,000 $ 11,825,000 $ 11,341,000 $ 13,750,000 $ 13,750,000 $ 13,310,000 Water Only= $ 2,475,000 $ 3,432,000 $ 4,365,000 $ 3,940,000 $ 4,490,000 $ 6,040,000 $ 5,010,000 $ 4,710,000 $ 3,940,000 $ 3,830,000 $ 11,325,000 $ 10,841,000 $ 13,250,000 $ 13,250,000 $ 12,810,000 Vehicle and Capital Eauioment Replacement SCADA Radio Communications System Enhancement $ 175,000 IT Capital Outlay $ 187,425 $ 196,796 $ 262,235 $ 272,235 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Operations Capital Outlay $ 681,045 $ 481,000 $ 222,000 $ 285,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Vehicle Replacement-Sewer $ 475,000 Vehicle&Capital Equipment Subtotal= $ 1,043,470 $ 677,796 $ 959,235 $ 557,235 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 TOTAL= $ 3,868,470 $ 4,459,796 $ 5,674,235 $ 4,847,235 $ 5,440,000 $ 6,990,000 $ 5,960,000 $ 5,660,000 $ 4,890,000 $ 4,980,000 $ 12,625,000 $ 12,141,000 $ 14,550,000 $ 14,550,000 $ 14,110,000 Water TOTAL= 15-YEAR CIP TOTAL= $ 120,745,736 Note:All costs are 2019 dollars and do not include escalation. PH&S=Public Health and Safety Reg=Regulatory R&R=Repair and Replace EP=Emergency Preparedness SU=System Upgrade YLWD 15 YEAR CIP-WATER AND SEWER DRAFT VERSION 3, 04/23/19(5%rate increase) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 Capital and Rehabilitation and Replacement(R&Rl Proiects PH&5 Mickel and Camino Verde Waterline Replacement $ 600,000 PH&5 Lakeview Booster Pump Station Piping(Water Quality) $ 200,000 PH&5 Timber Ridge Pump 4 Replacement $ 300,000 PH&5 Hidden Hills BPS Upgrades $ 300,000 PH&5 Ridgeway Waterline Replacement $ 280,000 $ 420,000 PH&S Avolinda and Imperial Waterline Replacement $ 1,300,000 Reg Site and Security Upgrades at District Facilities(Bioterrorism Act of 2002) $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 R&R Well 22 Equipping $ 900,000 $ 400,000 R&R Field Headquarters Rehabilitation(HVAC,Roof,Paving) $ 120,000 $ 380,000 R&R Well Equipment Rehabilitation $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 R&R Reservoir Operational Repair and Replacement $ 200,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 R&R Box Canyon Pump 2 Replacement $ 70,000 R&R Apple Creek and Del Rey PRS Replacement $ 450,000 R&R Dominguez Hills and Paseo Del Prado PRS Replacement $ 600,000 R&R Waterline Replacement $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 $ 9,000,000 R&R Richfield Chemical System Replacement $ 800,000 R&R Well 20 Chemical System Replacement $ 400,000 R&R Well 23 $ 900,000 $ 1,400,000 R&R Lakeview Chemical System Replacement $ 400,000 R&R Pump Station Rehabilitation $ 900,000 $ 1,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 R&R Pressure Regulating Station(PRS)Replacement $ 300,000 $ 300,000 $ 500,000 $ 60,000 $ 250,000 $ 250,000 $ 350,000 EP ReqppiAiF FiFe HaFeleming(4 es) SU Water Supply Redundancy and Fire Flow Reliability(5 sites) $ S00,000 $ 500,000 $ 500,000 $ 500,000 Sewer Pipe Relining and Manhole Rehabilitation $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Capitalized Labor $ 225,000 $ 202,000 $ 575,000 $ 390,000 $ 440,000 $ 590,000 $ 360,000 $ 460,000 $ 390,000 $ 380,000 $ 1,075,000 $ 1,031,000 $ 1,250,000 $ 1,250,000 $ 1,210,000 Capital and R&R Projects Subtotal = $ 1,945,000 $ 2,432,000 $ 5,695,000 $ 4,290,000 $ 4,840,000 $ 6,390,000 $ 5,360,000 $ 5,060,000 $ 4,290,000 $ 4,180,000 $ 11,825,000 $ 11,341,000 $ 13,750,000 $ 13,750,000 $ 13,310,000 Water Only= $ 1,595,000 $ 2,082,000 $ 5,345,000 $ 3,940,000 $ 4,490,000 $ 6,040,000 $ 5,010,000 $ 4,710,000 $ 3,940,000 $ 3,830,000 $ 11,325,000 $ 10,841,000 $ 13,250,000 $ 13,250,000 $ 12,810,000 Vehicle and Capital Eauioment Replacement SCADA Radio Communications System Enhancement $ 175,000 IT Capital Outlay $ 187,425 $ 196,796 $ 262,235 $ 272,235 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Operations Capital Outlay $ 681,045 $ 481,000 $ 222,000 $ 285,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 Vehicle Replacement-Sewer $ 475,000 Vehicle&Capital Equipment Subtotal= $ 1,043,470 $ 677,796 $ 959,235 $ 557,235 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 TOTAL= $ 2,988,470 $ 3,109,796 $ 6,654,235 $ 4,847,235 $ 5,440,000 $ 6,990,000 $ 5,960,000 $ 5,660,000 $ 4,890,000 $ 4,980,000 $ 12,625,000 $ 12,141,000 $ 14,550,000 $ 14,550,000 $ 14,110,000 Water TOTAL= 15-YEAR CIP TOTAL= $ 119,495,736 Note:All costs are 2019 dollars and do not include escalation. PH&S=Public Health and Safety Reg=Regulatory R&R=Repair and Replace EP=Emergency Preparedness SU=System Upgrade 04 FITCH RATINGS SUMMARY BRETT R. BARBRE Assistant General Manager FitchRatings DAYS IN CASH • FY 19: 378 days • FY20: 351 days • FY21 : 352 days April 24, 2019 V DEBT COVENANT RATIO • FY 19: 269% • FY20: 216% • FY21 : 178% April 24, 2019 UNRESTRICTED RESERVES • FY19: $29,854,915 • FY20: $31 ,062,710 • FY21 : $321890,629 April 24, 2019 PERCENT GROWTH • FY 19: - • FY20: 70 new customer connections; 0.3% • FY21 : 70 new customer connections; 0.3% April 24, 2019 OPERATING BUDGETS • FYI 9: $30,149,138 • FYE 19: $29,854,915 • FY20: $32,311 ,844 • FY21 : $34,063,588 April 24, 2019 CIP • FY 19: $515421500 • Completed: $5,125,500 • Deferred: $417,000 • FY20: $315181470 FY20 (AMP): $ l OM • FY21 : $41109,796 FY21 (AMP): $ l OM • 100% PAY-GO April 24, 2019 J UNBILLED/UNACCOUNTED FOR WATER < 10% • FY77: 8.2% • FY20: 7.9% • FY21 : 7.8% FULL COMPLIANCE WITH REGULATORY REQUIREMENTS • FY 17: YES • FY20: YES • FY21 : YES SERVICE TERRITORY MHI = 115 % + OF STATE/NATION • STATE • FY17: 182% • FY20: 189% • FY21 : 189% • NATION • FY 17: 210% • FY20: 217% • FY21 : 217% April 24, 2019 'art RECOMMENDED RATE ADJUSTMENTS • FY20 [January 2020]: • $3. 1 2/month increase • No increase in Commodity Rate • FY21 [January 2021 ]: • $3.57/month increase • No increase in Commodity Rate April 24, 2019 YLWD - FITCH PRESENTATION APRIL 10, 2017 • FY 17 — FY21 ❑ Debt Service Coverage — 2.74; 2.08; 2.28; 2.55; 2.81 Q Days Cash (before CIP) — 404; 412; 450; 495; 545 Q Established Rate Stabilization Fund Q CIP approximately $15,000,000 from FY17 to FY21 ❑ Rate increase of 12% in each of the next three years April 24, 2019 12 YLWD - FITCH PRESENTATION NOVEMBER 3, 2017 • FY 18 - FY22 ❑ Debt Service Coverage — 2.81 ; 2.44; 2.31 ; 2.55; 2.32 Q Established external GASB 68 (pension) and GASB 75 (OPER) account Q Days Cash (including CIP) — 339; 320; 319; 323; 319 Q CIP approximately $15,000,000 from FY18 to FY22 ❑ Rate increase of 12% in FY 19 and FY 20 April 24, 2019 13 FitchRatings Four Main Areas of Consideration UPDATE - FY 20 and FY 21 FY 17 I FY 20 i FY 21 I Governance and Management . l F� General Stability, effectiveness and experience of leadership Limited to no political pressure from governing body Transparency and communication between management and governing body History of forecasts and resource management plans Documented policies and procedures FY 17 FY 20 FY 21 Financial Profile Total debt service coverage of approximately 2.OX or greater FY17 - 309.23% FY 20 - 217% FY 21 - 216.23% Days cash and days of working capital equal to one year or more FY17 — 370 days FY 20 —351 days FY 21 — 352 days ❑ F-1 r-I Free cash relative to depreciation equal to 100% or better FY17 — 90.22% FY 20 — 58.86% FY 21 —44.59% [� [� Residential charges for combined water/sewer less than or equal to 1.2% of MHI FY17 — .90% FY 20 - .9t7% FY 21 — 1.01% Approximately 30% or more of revenues recovered through fixed fees FY17 — 37.78% FY 20 —31.16% FY 21 — 30.79% FY 17 FY 20 FY 21 Debt Profile Existing and five-year projected debt per customer of$1,500 or less Existing - FY17 - $1,464.36 FY 20 —$1,317.03 FY 21 —$1,264.67 5 Year— FY17 -$1,185.46 FY 20 —$1,029.88 FY 21 —$965.97 Existing and five-year projected debt per capita levels $500 or less Existing - FY17 - $462.85 FY 20 —$401.75 FY 21 —$381.88 5 Year— FY17 - $361.79 FY 20 —$319.24 FY 21 —$296.44 [� [� Debt funding of capital of 50% or less FY17 — 19.8% FY 20 — 17.8% FY 21 — 17.2% ® [✓1 [� Amortization of principal equal to 90% or greater over the ensuing 20 years FY17 —89.0% FY 20 - 100% FY 21 - 1 00% FitchRatings, FY 17 FY 20 FY 21 Operating Profile Customer accounts stable or growing less than 1% annually FY17 — FY 20 - FY 21 - ❑ ❑ ❑ Top 10 customers for retail utilities represent 5% or less of system revenues and no customer accounts for more than 2% of system revenues FY17 - 10.7% FY 20 — +IIa FY 21 — nia ❑ ❑ ❑ Annual renewal of 100% or more of depreciated assets FY17 — 98.14% FY 20 - „ia FY 21 — n/a Unbilled/unaccounted for water of less than 10% FY17 — FY 20 - 7.9% FY 21 — 7.8% [� [� Full compliance with regulatory requirements FY17 — YES FY 20 - YES FY 21 -YES Service territory MHI equal to 115% or more of state/nation State — FY17 — 182% FY19 - 189% FY20 - 189% Nation — FY17 - 210% FY19 - 217% FY20 - 217% April 10, 2017 - YLWD-Fitch Presentation FY 2017 to FY 2021 ❑ Debt Service Coverage — 2.74; 2.08; 2.28; 2.55; 2.81 Days Cash (before CIP) — 404; 412; 450; 495; 545 Established Rate Stabilization Fund CIP approximately $15,000,000 from FY17 to FY21 ❑ Rate increase of 12% in each of the next three years November 3, 2017 - YLWD-Fitch Presentation FY 2018 to FY 2022 ❑ Debt Service Coverage — 2.81; 2.44; 2.31; 2.55; 2.32 Established external GASB 68 (pension) and GASB 75 (OPEB) account Days Cash (including CIP) — 330; 320; 319; 323; 319 CIP approximately $15,000,000 from FY18 to FY22 ❑ Rate increase of 12% in FY 19 and FY 20 ESTIMATED COSTS FOR STRATEGIC PLAN INITIATIVES ESTIMATED COSTS GOAL 1: Safe& Reliable Water and Sewer Service District Staff Initiative 1: Wells 22 & 23 = $3,600,000+ Work towards service reliability and efficiency Desalination =TBD Raw water=TBD Initiative 2: Explore service boundary opportunities District Staff to explore opportunities Initiative 3: Maintain and update District security and aesthetics, as $500,000/year starting in FY21 needed: Initiative 4: Refer to AMP, CIP, CMMS, and RUL Address infrastructure needs by updating/implementing: Initiative 5: Monitor emerging water quality and sewer issues and District Staff regulations Initiative 6: Provide a sustainable, adequate water supply District Staff and partners (OCWD, MWDOC) GOAL 2: Fiscal Responsibility Initiative 1: District Staff Maintain fiduciary responsibility AA/AA+ rating advantages; downgrade will have consequences for future funding abilities Initiative 2: District Staff Financial Transparency Initiative 3: District Staff Equitable Rates Rate study consultant and Prop. 218 preparations $126,000 Initiative 4: District Staff List sources of funding Submitted grant applications, reviewing State Revolving Funds, small loans, bonds, etc. GOAL 3: Operational Effectiveness District Staff Initiative 1: AMI: $5,000,000 Efficiency CMMS: "'$500,000 Initiative 2: District Staff Sustainability $10M/year per AMP Initiative 3: District Staff Emergency Preparedness $100,000 GOAL 4:Community Partnership Initiative 1: Director of Public Affairs Brand Recognition $176,200/year Initiative 2: Public Awareness Included with Initiative 1 above. GOAL 5:Workforce Engagement Initiative 1: District Staff Employee Development Salaries may increase. Training and conferences = $236,000-239,000/year Initiative 2: District Staff Employee Relations