HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 05/20/2020SPECIAL BOARD MEETING May 20, 2020 at 5:30 PM
VIA TELECONFERENCE
In an effort to prevent the spread of COVID-19 and in accordance with Governor
Newsom's Executive Order N-25-20 and N-29-20, this meeting is being conducted via
teleconference. There will be no public location for attending this meeting in person.
Members of the public and may listen and provide public comment telephonically and/or
submit a Speaker/Com ment Card prior to the start of the meeting.
Anyone wishing to join the meeting may do so using the following information:
DIAL: 1-510-338-9438 and enter ACCESS CODE: 620 062 386##
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MEET ING# 620 062 386 and PASSWORD: EVWD2020
AGENDA
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL OF BOARD MEMBERS
PUBLIC COMMENTS
Any person wishing to speak to the Board of Directors is asked to complete a
Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each
speaker is limited to three (3) minutes, unless waived by the Chairman of the Board.
Under the State of Californ ia Brown Act, the Board of Directors is prohibited from
discussin g or taking action on any item not listed on the posted agenda. The matter
will automatically be referred to staff for an appropriate response or action and may
appear on the agenda at a future meeting.
1.Review FY 2020-21 Revenue Projection s
REPORTS
2.General Manager/CEO
3.Legal C ounsel Report
4.Board of Directors' C omments
A D J O URN
P urs uant to G overnment C o d e S ec tio n 54954.2(a), any reques t for a d is ab ility-related modific ation or
ac commodation, inc luding auxiliary aid s o r s ervic es , that is s o ught in order to p artic ip ate in the above
agendized public meeting should be direc ted to the District C lerk at (909) 885-4900.
S P E CIAL B O AR D AG E ND A S TAF F R E P O RT
Agenda Item #1.
Meeting Date: May 20, 2020
Dis c ussion Item
To: G o verning Board Memb ers
F rom: G eneral Manager/C EO
Subject: R eview F Y 2020-21 R evenue P ro jectio ns
R E C O MME N D AT IO N:
T his item is p res ented as info rmatio n o nly.
B AC KGR O UN D / AN ALYS IS :
At a teleconference wo rks ho p held o n Ap ril 22, 2020 Exec utive Management presented to the Board of
Directo rs (Bo ard ) their p ro p o sed program goals and o bjec tives fo r fis cal year (F Y) 2020-21. S taff is no w
working to d etermine the funding need ed , whic h will b e p res ented to the Bo ard at a wo rks hop o n June 10, 2020.
Before completing an o p erational s p ending p lan, staff needed to p ro ject the amo unt o f revenue and o ther funding
s o urc es that will b e available to meet program c o mmitments . T herefore, the purp o s e of this telec o nferenc e is to
review revenue p ro jec tions for the upc o ming F Y b eginning with the rates that s upport them.
T he Board will recall c anc eling the s ched uled public hearing fo r April 8, 2020, fo r the consideratio n of ad o p ting
water rates and wastewater c ollectio n rates. T he meeting was c anceled due to the S tay-At-Ho me O rd er is s ued
b y G overnor News o m, which prohib ited p ub lic acc es s to bus ines s es and community fac ilities like the Distric t.
Altho ugh a comprehens ive rate study and cos t of s ervic e analys is were c o mp leted and pres ented to the Board
o n January 22, 2020, s taff has taken a c o nservative ap p ro ac h in d evelo p ing the F Y 2020-21 revenue p ro jectio n
b y using rates effec tive January 1, 2020, for the full fis c al year. O nce new rates are ad opted , s taff will p res ent a
revenue ad jus tment to the Bo ard to re-align projec tions , whic h will inc reas e funding to c o ver o p erating and
capital c o sts identified in the cos t o f servic e analysis .
WAT E R F UN D R E VE N UE P R O J E C T IO N S
T he District will p ro vid e water servic es thro ugh ap p ro ximately 21,579 d o mes tic and irrigation c o nnectio ns in F Y
2020-21. In ad d ition, 252 c o mmerc ial fire services and 21 temp o rary hyd rant meters are connected to the
Dis tric t’s s ys tem. Water demand is es timated at 7,094,000 hund red c ubic feet of water (HC F = 748 gallons) for
F Y 2020-21. T he estimate is b as ed on actual c onsump tion fro m F Y 2018-19. T he cons ump tion data fro m this
year was selec ted bec ause o f its cons ump tion model’s three-year average. S taff is c onfident that the ab o ve
p ro jectio n will allo w s ignific ant funding fo r program goals and o b jectives witho ut s ignific ant risk of p ro jectio ns
that are overstated.
Annual water d emand projectio ns are b as ed on es timated usage in each c us tomer c las s and tier. Us age estimates
are then multip lied by tier rates in order to c alculate projec ted sales. To tal water s ales fo r F Y 2020-21 is
p ro jected to b e $16,868,000 and are allo cated as follows:
Meter Charge revenue for F Y 2020-21 is pro jected to be $9,020,000. P ro jectio ns for this revenue s o urc e are
d etermined b as ed on the cus to mer c o unts d isc ussed ab o ve, s egregated b y meter size, and then multip lied by the
fixed mo nthly rates in effec t. R evenue res ults for Meter C harges fo r the las t three years have exceeded
p ro jectio ns . F Y 2019-20 Meter C harge is projec ting to end the year at $9,009,000, resulting in an inc reas e of
$11,000 fo r F Y 2020-21.
WAS T E WAT E R F UN D R E VE N UE P R O J E C T IO N S
T he Dis tric t p ro vides was tewater c o llectio n services to c usto mers thro ugh approximately 20,205 c onnec tions .
O f these c o nnectio ns , 19,125 s erve s ingle-family residential units , with the remaining 1,080 cons is ting of vario us
commerc ial and multi-family cus to mers . T he numb er o f was tewater c o nnec tions has not inc reas ed signific antly
o ver the las t five years .
Wastewater S ystem Charges are p ro jected at $4,656,000 fo r F Y 2020-21. T hes e revenues are the s o urc e of
fund s us ed by the District to maintain and rep lac e wastewater c o llectio n lines, p ay a portio n o f the Dis tric t’s
general and ad minis trative cos ts , and pay deb t s ervic e on wastewater b o nds .
P ro jected res idential revenues for F Y 2020-21 were c alculated b y multip lying the single-family res id ential c o unt
b y the monthly flat c harge o f $15.36 for 12 mo nths to d erive estimated revenue o f $3,552,000.
C o mmerc ial c us to mer p ro jec ted revenues were calc ulated by multip lying the number o f c o mmerc ial acc o unts b y
the Dis trict’s mo nthly flat c harge of $3.90 for twelve months, and then es timating total water usage b y
commerc ial c us tomers, in HC F, and multip lying the to tal usage by the vo lumetric rate o f $0.55. C o mmercial
b illings make up $1,104,000 o f pro jected revenue.
Wastewater Treatment Charges are assess ed in ac cordance with rates s et by the C ity of S an Bernard ino
(C ity), whic h currently treats all wastewater generated b y District c us tomers . All Treatment C harges c o llected are
remitted to the C ity and therefore have no effec t on District operatio ns . Treatment C harges and off-setting
p ayments to the C ity are estimated at $8,586,000 for F Y 2020-21.
O T HE R C HAR G E S & OT HE R R E VE N UE S OUR C E
Other Charges & Other Revenue inc lude fees related to the c o llectio n of delinq uent ac c o unts, inves tment
revenue, reimburs ements from other agencies, fac ility rentals , and o ther misc ellaneo us revenue. T he total revenue
p ro jected for F Y 2020-21 is $735,000, do wn $272,000 fro m F Y 2019-20. Initiatio n o f S ervic e, Delinquent, and
NS F F ees have dec reas ed to $428,000 d o wn $212,000, influenc ed by two facto rs , the Dis continuatio n of
R es id ential Water S ervic e P olic y required by S B 998 and the impac t the p andemic has o n
Dis connectio n/R ec onnectio n c harges c o llec ted d uring the d elinquency c o llec tion proc es s .
R ecommended b y:
Jo hn Mura
G eneral Manager/C EO
R espec tfully sub mitted:
Brian Tomp kins
C hief F inancial O ffic er
Investment Inc o me has dec reas ed to $255,000 down $45,000. T he Investment Inc o me d ecline is d ue to los s of
time b etween the withdrawals for p aying S NR C cons truc tion invoic es and the time it takes to re-d ep o s it
reimb urs ement checks from S R F loan p ro c eed s and grant funds. F acility R ental F ees and O ther Mis cellaneo us
R evenue dec reas ed $51,000 d own $15,000. S taff has reduced F ac ility R entals by half c ompared to F Y 2019-20
d ue to the uncertainty the p andemic may have o n p ublic use o f Dis tric t facilities.
Total F inancial R esources availab le fo r F Y 2020-21 includ e the $39,865,000 in rate revenues outlined above,
p lus $157,000,000 in S tate R evolving F und financing and G rants for the S terling Natural R esource C enter.
At the next bud get wo rks hop on June 10, 2020, s taff will present a s p ending p lan to utilize thes e financial
res o urc es , entrus ted to the Dis trict by our s takeholders , in an effec tive and fis c ally responsible manner.
AG E N C Y G O ALS AN D OB J E C T IVE S :
G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability
a) P rac tice Trans parent and Ac countab le F is cal Management
R E VIE W B Y O T HE R S :
T his agenda item has been reviewed by the Administration, F inanc e, and P ub lic Affairs Departments and the
C ommunity Ad vis ory C o mmis s ion.
F IS C AL IMPAC T
T here is no fis cal impac t as s o c iated with this agend a item.
ATTACH M E N TS:
Description Type
P resentation P resentation
May 20, 2020
REVENUE
PROJECTIONS
2019-20 REVENUE
2
2019-20 REVENUE
•Water Sales
•Mid-Year Projected Water Sales of 7,184,000 HCF for $16,100,000
•Revised Projected Water Sales of 6,941,000 HCF for $15,777,000
•Water System (Meter) Charges
•$8,884,155 on Customer Connections
•$125,726 on Temporary Connections
•Wastewater System (Collection) Charges Projected Revenue
•$3,551,934 on 19,125 SFR Accounts
•$1,113,646 on 1,080 MF/Commercial Accounts
3
2019-20 REVENUE (CONTINUED)
•January 2020 -Implemented Last Half of Phase III Tiered Rates
•Refrained from Implementation of Phase III Meter Charges
•Most Recent Adjustments
•Water Rates:
•July 2017 -Commodity Rate Increased -½ of Phase III Adopted Rate (6%)
•July 2016 -Water System (Meter Charge) -Phase II Implemented
•Wastewater Rates:
•October 2012 -Wastewater System (Collection) Charges Increased 9%
•July 1, 2017 -Wastewater Treatment Rate Increase -$0.70 per SFR (3%)
4
5
EVALUATING RESULTS –WATER REVENUE
$8,943,223 $9,001,470 $9,009,881
$6,258,376 $6,229,945 $6,480,000
$5,940,316 $5,954,209 $5,602,000
$4,143,686 $4,084,748 $3,695,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
FY 2017-18 FY 2018-19 FY 2019-20
Meter Charges Tier 1 Tier 2 Tier 3
$16,342,378
$25.3 Million $25.3 Million
$16,268,902
$24.8 Million
$15,777,000
6
EVALUATING RESULTS –WASTEWATER REVENUE
$4,650,970 $4,647,667 $4,656,000
$8,578,638 $8,666,031 $8,586,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
FY 2017-18 FY 2018-19 FY 2019-20
System Charge Treatment Charge
$13.2 Million $13.3 Million $13.2 Million
REVENUE
PROJECTIONS
7
8
WATER RATES
RATE
TYPE
CURRENT
RATES
Tier 1 $ 1.83
Tier 2 $ 2.61
Tier 3 $ 3.64
Effective January 2020
METER
SIZE
CURRENT
RATES
5/8”$ 23.06
3/4”$ 29.27
1”$ 41.71
1 1/2”$ 72.81
2”$ 110.13
3”$ 228.30
4”$ 402.44
6”$ 819.44
8”$ 1,503.28
Commercial
Fire Service $ 8.78 to 87.84
WATER USAGE BY MONTH
9
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
July Aug Sept Oct Nov Dec Jan Febr March Apr May June
2016-17 2017-18 2018-19 2019-20 2020-21
Projected Usage for FY 2019-20
6,941,000 HCF or 5,192 MG
FY 2020-21 PROJECTED WATER REVENUE
10
$8,980,000 $9,009,000 $9,020,000
$15,900,000 $15,777,000
$16,868,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
FY 2019-20 Budget FY 2019-20 Projected FY 2020-21
Meter Water Sales
$24.9 Million $25.9 Million$24.8 Million
11
FY 2020-21 WATER SALES
Residential
$9,387,000
Multi-Family
$3,724,000 Commercial
$1,413,000
Irrigation
$2,344,000
TOTAL -$16,868,000
RATE TYPE TIER 1 TIER 2 TIER 3
Residential $ 3,936,000 $ 3,744,000 $ 1,707,000
Multi-Family $ 1,788,000 $ 1,020,000 $ 916,000
Commercial $ 926,000 $ 89,000 $ 398,000
Irrigation /
Construction $ 0 $ 1,178,000 $ 1,166,000
12
FY 2020-21 METER CHARGES
METER
SIZE COUNT RATE
5/8”4,202 $ 23.06
3/4”12,537 $ 29.27
1”4,134 $ 41.71
1 1/2”267 $ 72.81
2”294 $ 110.13
3”89 $ 228.30
4”26 $ 402.44
6”18 $ 819.44
8”12 $ 1,503.28
Commercial
Fire Services 255 Various
$1,163,000
$4,403,000
$2,069,000
$233,000
$1,000,000
$152,000
TOTAL -$9,020,000
5/8"3/4"1"1.5"2" and Larger Fire Svcs
FY 2020-21 WASTEWATER SYSTEM CHARGES
CUSTOMER TYPE SERVICE
CONNECTIONS
ESTIMATED
USAGE
MONTHLY FIXED
OR UNIT CHARGE
TOTAL
REVENUE
Residential 19,125 N/A $ 15.36 $ 3,552,000
Commercial / Multi-Family
Fixed 1,080 $ 3.90 $ 50,500
Volumetric 2,007,000 $ 0.55 $ 1,053,500
Commercial Total $ 1,104,000
Wastewater System Charges Total $ 4,656,000
13
FY 2020-21 WASTEWATER TREATMENT CHARGES
•City of San Bernardino Rates Effective 7/1/2017
•Residential: $21.55 Monthly
•Multi-Family: $1.97, plus $1.53 per HCF
•Non-Residential: $3.52, plus $1.33 to $3.28 per HCF
14
FY 2019-20 FY 2020-21
Wastewater Treatment Charges $ 8,665,000 $ 8,586,000
Contract Services –Wastewater Treatment (8,665,000)(8,586,000)
Net Effect on District Operations $ 0 $ 0
FY 2020-21 WASTEWATER TREATMENT CHARGES
(CONTINUED)
15
CUSTOMER TYPE
SERVICE
CONNECTIONS
ESTIMATED
USAGE
(HCF)
MONTHLY FIXED
OR UNIT CHARGE
TOTAL
REVENUE
Residential 19,125 N/A $ 21.55 $ 4,938,000
Multi-Family -Fixed 468 $ 1.97 $ 11,000
Multi-Family -Volumetric 1,286,000 $ 1.53 $ 1,967,000
Commercial -Fixed 612 $ 3.52 $ 26,000
Commercial -Volumetric 624,000 Various $ 1,644,000
Commercial Total $ 3,648,000
Wastewater Treatment Charges Total $ 8,586,000
FY 2020-21 OTHER CHARGES & REVENUE
16
$36,000
$15,500
$5,000
$33,000
$195,000
$115,000
$80,000
$255,000
$- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000
Miscellaneous Revenue
Facility Rental Fee
Returned Payment Fee
Disconn./Reconn. Fee
Disconn. Notice Charge
Delinquent Fee
Initiation of Service Fee
Interest Revenue
TOTAL PROJECTED REVENUE -$734,500
$8,128,030 $8,697,671 $8,666,031 $8,573,606 $8,586,000
$4,703,439 $4,668,923 $4,647,667 $4,665,580 $4,656,000
$23,500,991 $26,063,647 $25,270,372 $25,129,000
$25,888,000
$1,116,089
$860,884 $834,000 $1,007,000 $735,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Wastewater Treatment Charges Wastewater System Charges Water Revenue Other
FY 2020-21 PROJECTED RATE REVENUE
17
$37.4 Million $40.3 Million $39.4 Million $39.0 Million $39.9 Million
FY 2020-21 OPERATING BUDGET SUMMARY
18
WATER WASTEWATER
Sales & Services $ 25,888,000 $ 13,242,000
Other Charges $ 285,000 $ 195,000
Investment & Miscellaneous Revenue $ 225,000 $ 30,000
Total Revenue $ 26,398,000 $ 13,467,000
Operations $ 18,837,000 $ 12,324,000
Debt Service $ 4,066,000 $ 313,000
Capital Expenditures $ 3,495,000 $ 830,000
Total Expenditures $ 26,398,000 $ 13,467,000