Getting the Most From Every Resource
Fiscal Year 2016-2017
Operating & Non-Operating Budgets
OPERATING & NON-OPERATING BUDGETS JULY 1, 2016 – JUNE 30, 2017 ADOPTED JUNE 30, 2016
Board of Directors William E Plummer, President Ben R. Drake, Sr. Vice President Stephen J. Corona Lisa D. Herman John E. Hoagland Danny J. Martin Bill J. Wilson
Executive Management Jeff D. Armstrong, General Manager Eva Plajzer, AGM – Engineering & Operations Richard R. Aragon, Director of Finance/Treasurer Jason A Martin, Director of Administration Andrew L. Webster, Chief Engineer Eileen Dienzo, Human Resources Manager For Copies, Contact: Milin J. Ream Sr. Administrative Assistant - Finance
42135 Winchester Road Temecula, CA 92590 Phone (951) 296-6936 Fax (951) 296-6862
Introduction
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Table of Contents
Page
Distinguished Budget Presentation Award ...... 1 General Manager’s Budget Message ...... 3-7
Introduction
Understanding the Budget Document ...... 8 About the District ...... 9 Service Area ...... 10 Demographic Summary ...... 11 Government ...... 12 Organizational Structure ...... 13-14 Community Profile ...... 16-21
Budget Process ...... 22 Budget Calendar ...... 24 Budget Organization ...... 25 Budget Basis ...... 26
Financial Policies ...... 27-30
District Mission and Values ...... 31 Strategic Planning...... 32-35 District Goals and Objectives ...... 36-43
OPERATING BUDGET
Rate Design Structure Rate Setting Philosophy ...... 44 Cost and Revenue Categories ...... 45
Operational Factors Operating Revenues ...... 45 Water Rates and Sales ...... 45 Monthly Service Charges ...... 46 Local Sources of Water ...... 47-49 Existing Water Utility Facilities ...... 52 Wastewater Utility Operations ...... 52 Insurance ...... 53
Statements Consolidated Operating Budget ...... 54-55 Major Operating Revenue ...... 56-59 Major Operating Expenditures ...... 60-64 Rancho Division Operating Budget ...... 65-66 Santa Rosa Division Operating Budget ...... 67-68 Resource Division Operating Budget ...... 69-70 Wastewater Division Operating Budget ...... 71
Footnotes Footnote #1-Summary of Significant Budgeting Policies ...... 73 Footnote #2-User Rates ...... 73 Footnote #3-New Service Connections ...... 78 Footnote #4-Water Cost ...... 78 Table of Contents
Footnote #5-Overhead Allocations ...... 78 Footnote #6-Wastewater Operations ...... 79
Rates and Fees Rancho Division Water & Energy Rates ...... 80 Santa Rosa Division Water & Energy Rates ...... 81 Monthly Service Charges ...... 82 Construction & Non-Potable Water Rates...... 82 Fee for Service Schedule ...... 83-85
Five Year Operating Forecast ...... 86-90
Divisional Plans District Organizational Chart ...... 91-101 Salary Schedules ...... 102-108 Personnel Staffing Levels ...... 110 Fund Structure ...... 111 Administration Division ...... 112-133 Finance Division...... 134-143 Engineering Division ...... 144-155 Operations Division ...... 156-167 Field Services Division ...... 168-175
NON-OPERATING BUDGET
Long-Range Capital Financing Plan Objectives ...... 177 Water Facilities ...... 178 Restructuring of District Debt ...... 183 Debt Policies and Administration ...... 184-187 Water Facilities – Rate Recommendations ...... 188 Wastewater Facilities – Rate Recommendations ...... 190 Water Reclamation, Treatment and Distribution Facilities ...... 191
Capital Projects ...... 192-194 Summary of Capital Improvement Projects ...... 195-200 Capital Improvement Projects Data Sheets ...... 201-218
Capital Acquisitions ...... 219 Capital Acquisition Budget ...... 220-222
Rates and Fees Non-Operating Water & Wastewater Rates Summary ...... 223 Schedule of Ad Valorem Assessments & Standby Charges ...... 223 Schedule of Water Capacity Fees ...... 224 Statements Consolidated Non-Operating Budget ...... 225 Major Non-Operating Revenue ...... 226-229 Major Non-Operating Expenditures ...... 230-232 Fund Structure ...... 233 Rancho Division Long-Range Capital Financing Plan ...... 234-241 Santa Rosa Division Long-Range Capital Financing Plan ...... 242-249 SRWRF Division Long-Range Capital Financing Plan ...... 250-257
Glossary of Abbreviations and Terms...... 259-267 Introduction
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Introduction
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Introduction
The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to RANCHO CALIFORNIA WATER DISTRICT for its Annual Budget beginning July 1, 2015. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. This is the eighth consecutive year that the District has achieved this prestigious award.
1 Introduction
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June 30, 2016
Rancho Board of Directors Water Rancho California Water District
lease accept my transmittal to you of the Rancho California Water District’s
Board of Directors Fiscal Year 2016-2017 Operating and Non-Operating Budgets in the amount of $158,918,292. This budget document provides detailed information about William E. Plummer P President the District’s revenue and expenditure forecast in the coming year and addresses
Ben R. Drake the main points and major decisions made in compiling the budget. Senior Vice President The District with the participation of the Board of Directors annually reviews its Stephen J. Corona strategic goals and objectives. The results of the strategic planning process guide Lisa D. Herman staff in its efforts to accomplish the mission of the District. Strategic goals and John E. Hoagland objectives were considered during the budget development process this year to
Danny J. Martin provide the basis for prioritizing efforts, activities, needs, human resources and
Bill J. Wilson financial resources.
Officers Certain challenges from the previous few years continue in this fiscal year. Some
Jeffrey D. Armstrong of these challenges include the continued downturn in the housing market from General Manager the hyper-growth levels during the last decade, continued increasing cost of goods
Eva Plajzer, P.E. and supplies, most significant of which is the increasing cost of import water, and Assistant General Manager Engineering and Operations finally the local economic climate for commerce and agriculture (Ag). While all of these challenges continue, it does appear that most of these have leveled off. The Richard R. Aragon, CPFO Director of Finance/Treasurer District has reflected in its fiscal year 2016-2017 budget these economic conditions.
Jason A. Martin Director of Administration The State is now in the fourth year of a drought has experienced unprecedented conditions with recent years seeing record high temperatures, lack of rainfall and Rich Ottolini, R.E.H.S., MSL Interim Director of Operations snowpack levels. Although recent snowfall and rain in Northern California has & Maintenance replenished reservoir levels, Southern California has still experienced below Andrew L. Webster, P.E. average rainfall, and groundwater levels across the state have not recovered. The Chief Engineer District’s own groundwater levels continue to be affected by the drought and have Kelli E. Garcia District Secretary required continued lower levels of pumping. Additionally, the District has drawn down Vail Lake levels to help mitigate the effects of the Drought. These conditions James B. Gilpin Best Best & Krieger LLP will impact the mix of supply the District has for fiscal year 2016-2017 resulting in General Counsel overall less local supply and higher costing import water. The District updated its Water Shortage Contingency Plan (WSCP) last year and enacted stage 4a effective June 1, 2015 in response to the drought and mandatory restriction from both the State Water Resources Control Board (SWRCB) and the Metropolitan Water District of Southern California (MWD). This significantly reduced water budgets for all customer classifications and prompted lower water demands in the current year. However, the SWRCB and MWD are planning to reevaluate the necessary level of restrictions later this spring in light of the improved water supply conditions for the State Water Project. The District’s own shortage stage will be adjusted accordingly.
3 Rancho California Water District 42135 Winchester Road • Post Office Box 9017 • Temecula, California 92589-9017 • (951) 296-6900 • FAX (951) 296-6860 • www.ranchowater.com The District has experienced a sharp decrease of 22.6 percent in water demand from budgeted water sales during the FY 2015-2016 in response to the drought. The fiscal year 2016-2017 forecast reflects an increase in demand from the reductions seen this year due to the SWRCB’s restrictions currently set to expire in October 2016. In terms of budgetary basis comparison, budgeted water sales for next year are projected to decrease 6,032 acre-feet or 9.5 percent from the previous year budget as compared to the higher 22.6 percent reduction in actual sales currently being experienced. The increase in water demand from actual amounts this year is projected across all customer categories but is most significant with residential accounts which faced the most severe restrictions. Because the cost of producing water is the single greatest expense the District incurs, 52.1 percent of the operating budget, and a change in the supply mix with less local water available will result in additional costs of $2,933,738. However, a decreased treated import water quantity and supply mix from the decline in budgeted sales projected from this current year’ s budget will result in a decrease of $5,325,320 over the prior year. The proposed total operating budget for the 2016-2017 fiscal year decreased by $2,262,433 or 3.3% over the 2015-2016 budget. Coupled with a decrease in demand, other cost increases are being incurred. As mentioned above the cost of imported water will be significantly greater than the prior year, and increased system maintenance and other costs will increase slightly for a total of $129,149. The table below is presented to help illustrate the operating budget change for fiscal year 2016-2017. Prior year 2015-2016 Budget $69,712,964 Treated Import Quantity Req. and supply mix -$5,325,320 2015-2016 Budget For Decreased Demand and Supply Mix $64,387,644 Increase in Treated Import Water Price $459,251 Increase in Untreated Import Water Price $714,549 Increase in Untreated Import Water Quantity $1,188,510 Increase in Import Water Fixed Charge Cost $571,428 Additional Cost from All Other Categories $129,149 Proposed 2016-2017 Budget $67,450,531 The District anticipates a decrease in the amount of local water production over the prior year by 2,360 acre-feet primarily due to a reduction of 3,000 acre-feet available to be taken from Vail Lake, with native groundwater pumping staying relatively the same. This local water is the lowest cost water supply available to the District. As the District produces less local water the demand will be met with more imported water which is the highest cost of water supply as reflected in the budget for fiscal year 2016-2017. The net increase in source of supply expense when adjusted for the decrease in demand, is $2,933,953 or 9.1 percent over the prior year, and is a result of less local water supply use, and increased import water costs and quantities. Looking forward a few years, additional cost pressures will continue to occur in the source of supply category as it is anticipated that treated MWD rates will increase 2.9% in January 2017 and average 3.7% annually over the following three years. Furthermore, untreated MWD rates will increase 12.1% in January 2017 and average 5.5% annually over the same time period. Energy expense represents another significant component of the total operating budget amounting to approximately 9.8 percent of the total budget. Over the last two and half years the District’s operating staff has been modifying its pumping strategies. This effort resulted in shifting from on- peak energy rate run times to off-peak periods, thereby reducing the total energy expense. The District also constructed a 1 megawatt solar project to provide power to the Wastewater Treatment Plant and two additional solar projects that produce approximately 1.8 megawatts of power for water operations. These facilities have resulted in an annual energy savings of $300,000. Additionally, the
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Rancho California Water District 42135 Winchester Road • Post Office Box 9017 •Temecula, California 92589-9017 • (951) 296-6900 •FAX (951) 296-6860 District is scheduled to complete the 5.1 megawatt solar project by the end of the fiscal year to further offset energy cost increases for water operations. With these efforts and the reduction in pumping due to decreased demand, the District’s energy expense budget decreased by $639,955 or 8.8 percent. The District operates with a full time equivalent (FTE) staff of 139 employees, which is a 3 fewer FTE workforce than FY 2015-2016 and 10 FTE lower than the recent high in 2011. The workforce budget accounts for 18.6 percent of the total operating budget. Due to the water industry facing greater challenges associated with supply availability, rising costs, and the current condition of the local economy, the District continues to operate with a lean staff. As previously mentioned, the State’s current water supply conditions have adversely affected the District’s service area. An important way the District and its customers can help reduce costs and preserve our water supply is through conservation and water use efficiency. Every drop of water saved directly reduces the amount of water produced from the most expensive supply source. Import water costs 500% more than the local water supply to produce. So by using water wisely every customer can help reduce costs and keep water rates lower. With this in mind, the District has embarked on several efforts to help provide tools and create incentives for customers to conserve and become more efficient including: Development of the MyWaterTracker website enhancement that allows customers to track their water usage as compared to their water budgets in real time while also providing email or text message notifications warning customers who are might exceed their water budgets and incur higher tiered water rates. Offering rebates or assistance related to water efficient devices through locally funded programs, state grants, and MWD membership agency funded programs that include: washing machines, high-efficiency toilets, “smart” irrigation controllers, soil moisture sensors and a turf replacement program. Provide Residential Water Use Efficiency Evaluations to customers who are in Tier III and Tier IV water usage. Offering an Agricultural Irrigation Efficiency Program for which agricultural customers are provided with technical assistance and financial incentives for improving irrigation system efficiency; and Implementing a Wireless Telemetry Pilot Project. The project involves the installation of sub- meters and capacitance probes at an avocado grove for measuring the water requirements of avocado trees; and Implementing a pilot project for exploring the usefulness of soil moisture sensory technologies for agriculture; and Implementing a Vineyard Demonstration project for which regulated deficit irrigation strategies will be demonstrated to the local wine-grape growing community; and Adding to the District’s website a Virtual Technical Assistance Center, which will make available useful data to agricultural customers who can use the data to implement best management practices; and The District has received $4.23 million in grants and conservation incentives directly related to the Conservation Program’s and will continue to pursue various incentives to save water
In addition, the District implemented a budget-based tiered water rate structure designed to promote efficient water use and currently only applies to residential and landscape customer classes. Each customer was given a budget that represents an appropriate amount of water to meet their needs. If a customer exceeds the budget amount, they are considered to be using water inefficiently or wastefully
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Rancho California Water District 42135 Winchester Road • Post Office Box 9017 •Temecula, California 92589-9017 • (951) 296-6900 •FAX (951) 296-6860 and will correspondingly pay a higher rate. In this dynamic economic environment, monitoring the budget and responding to changes or unanticipated events is a continuing process. The Finance Division provides the Board of Directors with monthly reports and quarterly analysis of both the operating and non-operating budgets. If adjustments to the budget are required, the District will respond accordingly.
FY 2016-2017 BUDGET HIGHLIGHTS
The District’s 2016-2017 total budget is $158,918,292 and is comprised of the following:
Category FY 2015-2016 FY 2016-2017 Operating $69,712,963 $67,450,531 Non-Operating 50,501,033 56,296,921 CIP 15,523,000 34,045,000 Capital Outlay 1,010,250 1,125,840 Total $136,747,247 $158,918,292
Monthly Bill Impact- Rancho Division M&I New Current Change % Change Variable 34.38 34.35 0.03 0.1% Fixed 21.22 20.20 1.01 5.0% Total 54.55 54.55 1.04 1.9% ¾” Meter, 25 HCF per Month , 1485 Pump Zone
Ag New Current Change % Change Variable 1,219.94 1,215.07 4.87 0.4% Fixed 80.75 78.78 1.97 2.5% Total 1,300.69 1,293.85 6.84 0.5% 2” Meter, 2 A/F per Month , 1610 Pump Zone
Monthly Bill Impact- Santa Rosa Division M&I New Current Change % Change Variable 44.04 43.20 .84 1.9% Fixed 40.58 37.93 2.65 7.0% Total 84.62 81.13 3.49 4.3% ¾” Meter, 25 HCF per Month , 1434 Pump Zone
Ag New Current Change % Change Variable 1,644.61 1,582.10 62.51 4.0% Fixed 174.62 174.62 0.00 0.0% Total 1,819.23 1,756.72 62.51 3.6% 2” Meter, 2 A/F per Month , 1670 Pump zone
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Rancho California Water District 42135 Winchester Road • Post Office Box 9017 •Temecula, California 92589-9017 • (951) 296-6900 •FAX (951) 296-6860
CONCLUSION his budget reflects the Board of Directors’ priorities and strategic plans which are communicated to the District’s staff through various meetings and workshops. The goal of Tthis budget document is to provide staff with a road map for prioritizing major capital improvement programs and ultimately fulfilling the District’s mission statement. The overall objective is to produce guidelines to address the District’s short-term and long-term goals and objectives. This document also demonstrates the District’s ability to use capital resources for completing critical capital projects for current and future customers as well as the District’s commitment to meet its financial obligations. Staff is confident that the financial framework outlined in the Fiscal Year 2016-2017 Budget will allow the District to deliver reliable, high-quality water, wastewater and reclamation services to its customers and communities in a prudent and sustainable manner.
ACKNOWLEDGEMENTS would like to thank the Board of Directors’ for their leadership and continued interest in and support of the highest level for prudent fiscal management. I would also like to extend my I appreciation to all of the District’s employees and to the Department Managers for presenting goals and objectives for this year’s budget that will support the District’s mission statement. Our goals and objectives could not have been met without all your work. Most importantly on behalf of our Board of Directors and all of the District’s employees, thank you to our valued customers, for whom it is an honor to serve.
Respectfully submitted, RANCHO CALIFORNIA WATER DISTRICT
Jeff D. Armstrong General Manager
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Rancho California Water District 42135 Winchester Road • Post Office Box 9017 •Temecula, California 92589-9017 • (951) 296-6900 •FAX (951) 296-6860 Rancho California Water District Introduction
Understanding the Budget Document On an annual basis, the Rancho California Water District Board of Directors adopts a budget for the subsequent fiscal year’s operations. Since water demand cannot be exactly forecast due to uncontrollable variables such as growth rates and weather conditions, actual revenues and expenditures may vary significantly from the approved budget. Consequently, the budget is viewed as a tool for estimating and planning District revenues and expenditures and is used for comparative purpose to identify unusual or unexpected trends. As a comprehensive management and financial plan, this document is structured to meet internal managerial needs and describes the services and resources provided by the District to its customers, as well as District policies and Board guidelines for achieving immediate and long-term objectives. The Board of Directors approved this budget at its June 9, 2016 meeting.
The organization and presentation of this budget are designed to satisfy the needs of the Rancho California Water District, its customers, Board of Directors, staff, and the public. It is divided into several sections as follows:
Introduction
•This section contains a description of the District and its organizational structure, budget process, community profile, and an explanation of the District's financial policies. Strategic Plan •This section describes how the District utilizes strategic planning in defining long- term goals and objectives of the District. Operating Budget •This section describes the philosophy and process used to develop the operating budget. The section discusses important operational factors and operating rate changes. Additionally, a budget summary, detailed budget, and a five-year forecast are presented. Finally, department objectives and accomplishments are detailed including specific performance indicators.
Non-Operating Budget •This section defines the objectives, presents a summary of the non-operating budget and details the non-operating rates, fees, and assessments for the fiscal year. The section also contains the District's 50-year Long-Range Capital Financing Plan, detailing funding sources and projected cash reserve levels required to meet the long-term capital needs of the District. Glossary •This section contains a list of definitions of terms used in this document.
8 Rancho California Water District Introduction
Description of the District Development of the Temecula/Rancho California community began in 1965 when the Vail Ranch was acquired by the partnership of Kaiser Corporations (Kaiser Aluminum & Chemical Corporation and Kaiser Industries Corporation) and Macco Realty Company. On August 16, 1965, to provide for a continuing and reliable water supply, the developers of Temecula/Rancho California formed the original Rancho California Water District (the “Rancho District”) over the easterly area of the Temecula/Rancho California development. The Santa Rosa Ranches Water District (the “Santa Rosa District”) was organized on January 24, 1968 to serve the westerly 44,800 acres of land in the community of Temecula/Rancho California. To provide supplemental water, the Rancho District was annexed in 1966 to the Eastern Municipal Water District (“EMWD”) and The Metropolitan Water District of Southern California (“MWD”). EMWD was also granted powers to collect, treat, and dispose of wastewaters within the Rancho District. In 1968, the Santa Rosa District was annexed to the Western Municipal Water District (“WMWD”) of Riverside County and MWD. Both EMWD and 1st District Building WMWD are member agencies of MWD, which provides supplemental imported Colorado River and State Project water to the District. Prior to 1976, EMWD assisted in the operation and maintenance of the Rancho District’s water system. By mutual agreement in 1976, this arrangement was terminated and the Rancho District assumed responsibility for maintenance and operation of the water system. The Santa Rosa District operated and maintained its water system District HQ, Present Day prior to consolidation with Rancho California Water District. On January 1, 1977, the Rancho District and the Santa Rosa District were consolidated in accordance with Riverside County Reorganization Nos. 76-34-4 and 76-34-5 under the name Rancho California Water District. Land areas within the District were designated as the “Rancho Division” for the original Rancho District and the “Santa Rosa Division” for the original Santa Rosa District. As a result of the consolidation, the District acquired power to operate, maintain and furnish facilities for all water systems within the District and for the collection and treatment of wastewaters over the Santa Rosa Division. EMWD remains responsible for wastewater treatment in the Rancho Division. With subsequent annexations, land area of the Santa Rosa Division and the Rancho Division of the District is currently approximately 50,549 and 48,609 acres, respectively. Service Area Rancho California Water District’s (“RCWD”/“District”) service area includes the City of Temecula and portions of the City of Murrieta and the unincorporated territory of the County of Riverside adjacent to such cities. The current population of the District’s service area is estimated to be approximately 147,600. The District is comprised of two divisions; the Rancho Division, consisting of approximately 48,609 acres, provides water service to customers in the area; the Santa Rosa Division, consisting of approximately 50,549 acres, provides water and wastewater services to customers in the area. The District is approximately 85 miles southeast of Los Angeles and 65 miles north of San Diego. The map on the following page illustrates the District’s service area.
9 Rancho California Water District Introduction
The District is Headquartered in Western Riverside County, Temecula California
10 Rancho California Water District Introduction
Demographic Summary
Water System: Service Area 99,158 acres Miles of Water Main 906 No. of Reservoirs 39 No. of Wells 42 No. of Service Connections 44,291 connections Recycled Water System: Miles of Water Main 65 miles No. of Reservoirs 4 No. of Service Connections 217 connections Wastewater System: Miles of Sewer Line 71 miles 1 ~ Santa Rosa Water Reclamation Facility. Treatment Plant Maximum Capacity 5 mgd No. of Sewer Connections 17,528 EDU’s sold Misc. Statistical Information Population Served: Approximately 149,000 No. of Employees 139 FTE Operating Budget: $67.5 Million Non-Operating Budget $56.3 Million Capital Improvement Program: $34.0 Million Source: Rancho California Water District
11 Rancho California Water District Introduction
Government The District is governed by a seven-member, elected Board of Directors. Directors shall be registered voters in the District at the time of their election and during their term of office. The Board of Directors serves alternate four-year terms. The District Board members are identified below:
TERM DIRECTORS YEARS OF SERVICE EXPIRATION DECEMBER
William E. Plummer, President 11 years 2017
Ben R. Drake, Sr. Vice President 15 years 2017
Stephen J. Corona. Vice President 15 years 2017
Lisa D. Herman, Vice President 25 years 2019
John E. Hoagland, Vice President 15 years 2017
Danny J. Martin, Vice President 1 year 2019
Bill J. Wilson, Vice President 1 year 2019
12 Rancho California Water District Introduction
Organizational Structure
The District’s organizational structure is as follows:
Legal Counsel Administration Finance WW Operations Customers of the Board of General Manager District Directors Engineering Water Operations
District Management The District currently employs an administrative and operating staff of 139 full time equivalents (FTE) under the direction of a Board appointed General Manager. The current corporate officers of the District and their biographies are as follows: Mr. Armstrong has been with the District since 1988 and was appointed the General Manager in November 2015. He served as the District’s Chief Financial Officer and Treasurer for 7 years, the District’s Controller for four years and was the Accounting Manager for 10 years. Prior to joining the District, Mr. Armstrong held various accounting positions in private industry including a Fortune 100 company. Mr. Armstrong earned his undergraduate degree in accounting from California State University, Long Jeff D. Armstrong Beach and his MBA from the University of Redlands. General Manager
Ms. Eva Plajzer was appointed Assistant General Manager for Engineering and Operations. Ms. Plajzer oversees the Engineering and Operations departments and is responsible for the District’s engineering, operations, wastewater and maintenance functions. Ms. Plajzer joined the District in May 2016 with over 20 years of experience in the utility and engineering consulting business. Prior to joining the District, Ms. Plajzer spent 10 years working in various capacities for water and sewer public utility providers. Prior to joining the public utility sector, Ms. Plajzer worked as a consultant for a nationally recognized engineering firm specializing in Eva Plajzer providing engineering and planning services to numerous utilities across AGM - Engineering & the United States. Ms. Plajzer holds a Professional Engineer’s license in Operations California and Virginia, and Treatment and Distribution Operator certifications from the California State Water Resources Control Board. She obtained her Bachelors of Civil Engineering from the University of California, Irvine and Masters of Engineering from University of California, Davis. Ms. Plajzer also holds a Masters degree in Public Administration from San Diego State University.
13 Rancho California Water District Introduction
Mr. Aragon joined the District as its Finance Manager in February of 2015 and was appointed Treasurer in October 2015. Mr. Aragon came to the District with 10 years of various finance, accounting, and auditing experience specializing in water districts, special districts, and municipal governments. Most recently he served as the Finance Director and Treasurer for a regional water wholesaler in Los Angeles and previously was responsible for overseeing accounting, financial reporting, and grants management for the North Slope Borough, a large county level municipality in Alaska. Mr. Aragon Richard R. Aragon is a Certified Public Finance Officer with the Government Finance Director of Officers Association, and earned his Bachelors of Science in Accounting from Finance/Treasurer California Baptist University in Riverside, California.
Mr. Webster was appointed the Chief Engineer of the District in October 2009. As Chief Engineer, he oversees the Engineering Department for the District. He has more than 24 years of public utility engineering experience during his career, including more than 20 years with the District. Mr. Webster earned his Bachelor of Science degree in Civil Engineering from California State University, Long Beach, and he is a registered Civil Engineer with the State of California. Mr. Webster has also previously served six years as a City Anderw L. Webster, P.E. of Temecula Planning Commissioner. Chief Engineer
Mr. Martin was appointed the District’s Director of Administration in November 2015. He is responsible for overseeing the District’s Customer Service, Information Technology, Administration and Water Use Efficiency functions. Previously, he served as the District’s Information Technology and Customer Service Manager since 2006. Prior to joining RCWD, Mr. Martin was the Business Manager for a telecommunications construction firm and the Training, Project Management and Field Services Manager for an e-911 emergency response system vendor. Mr. Martin has a Bachelor degree in Jason Martin Management Information Systems from California State University, San Director of Administration Bernardino.
Ms. Garcia was appointed the District Secretary in July 2005. She has over 10 years of administrative experience in the public sector. Ms. Garcia has been with the District since 1992, and has served in the capacity of Administrative Assistant in the Board Administration Department since 1999 and as Deputy District Secretary since 2002.
Kelli E. Garcia District Secretary
14 Rancho California Water District Introduction
There are three recognized employee bargaining groups, the Rancho California Water District Employees’ Association (RCWDEA), the Rancho California Water District Managers, Professional, and Confidential Employees’ Association (MPCEA), and an unrepresented group. Under state law, the District is required to meet and confer each year with the bargaining units. The RCWDEA and MPCEA have entered into a three year Memorandum of Understanding (MOU) through fiscal year 2016-2017. The District has established a defined benefit pension plan for all full-time employees of the District. The District’s defined benefit pension plan provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and beneficiaries. The Plan is part of the Public Agency portion of the California Public Employees Retirement System (CalPers), an agent multiple-employer plan administered by CalPers, which acts as a common investment and administrative agent for participating public employers within the State of California. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPers. The Plan is funded by employer and employee contributions. Active plan members in the Plan are required to contribute 8% of their annual covered salary. For classic employees (employees hired before January 1, 2013 or employees hired after January 1, 2013 and have been in the PERS System) the District pays the 8% employee contribution on behalf of the employees. For new members (employees hired after January 1, 2013 and are new entrants to the PERS System), employees pay the 8% contribution. The District is required to contribute the actuarially determined remaining amounts necessary to fund the 2.7% at age 55 retirement plan benefits for its classic members and 2.0% at 62 for its new members under the California Employee’s Pension Reform Act (PEPRA) provisions. The District is also required to contribute 0.875% of the annual covered salary of classic members for the Conversion of Employer Paid Member Contributions (EMPC) benefit as provided in the Plan. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. District classic employees pay an additional 2.936% for a benefit enhancement increasing the plan benefit from 2.5% to 2.7% and also contributed 8% of their annual covered salary to offset the District’s pension costs for the fiscal year ended June 30, 2015. During the fiscal year ended June 30, 2015, the District’s contribution to PERS for full-time employees was $2,229,882 net of employee contributions of $1,245,266.
15 Rancho California Water District Introduction
Community Profile The cities of Temecula and Murrieta are centrally located along the I-15/I-215 freeway corridor in Southwest California, just north of the San Diego County line. Temecula is well known for its championship golf courses, a climate perfect for serene and beautiful hot-air ballooning adventures, and Temecula Valley Wine Country, the heart of California's South Coast wine region. It is a place where Poster Contest Winners natural beauty, historic traditions, and modern conveniences combine to attract visitors year round as well as offer entertainment for people of all ages. Murrieta is a young, on-the-go affluent community. The natural scenic beauty of the area and what is Tour Murrieta Tour de Parade Christmas still by California standards reasonably priced Earthcapades housing continues to attract significant numbers of residents and businesses who are finding Murrieta a great place to grow. Those living in the community find distinguished schools, abundant recreation, and excellent medical facilities. It is a city with Solar Cup Solar
a past and a vision for its future. & FestivalBalloon Wine Throughout the year, Rancho California Water District participates in several community events such as, the Susan G. Komen Race for the Cure, The Annual Community Water Festival, Water Conservation Expo, and sponsors the “Water is Life” poster contest.
Education The District serves portions of two school districts. The Temecula Valley Unified School District is comprised of approximately 27,700 students and the Murrieta Valley Unified School District is comprised of approximately 22,700 students. The University of California, Riverside has an extension center in Temecula and Mt. San Jacinto Community College is located ten miles from Temecula. There are seven two-year community college campuses located in the communities of Riverside, Moreno Valley, Norco, San Jacinto, Menifee, Coachella Valley, and Palo Verde Valley. There are also two universities and a four-year college located in the City of Riverside: the University of California, Riverside, La Sierra University, and California Baptist College. Temecula and Murrieta have a history of academic excellence with its public schools ranking among the highest in state-administered achievement tests. There are also more than 40 private primary and secondary schools and charter schools available throughout the Temecula and Murrieta Valley.
16 Rancho California Water District Introduction
Principal Employers
EMPLOYER NAME LOCATION NO. OF EMPLOYEES
Temecula Valley Unified School District Temecula 2,604 Murrieta Valley Unified School District Murrieta 2,044 Abbott Laboratories Temecula 2,000 Professional Hospital Supply Temecula 1,600 Loma Linda Univ. Med. Ctr. Murrieta 900
County of Riverside Murrieta 889 International Rectifier Temecula 750 SW Healthcare Systems Murrieta 692 Target Murrieta 500 Walmart Murrieta 350
Source: CA Employment Development Dept.
Principal Tax Payers
Customer % of Total Tax Assessed Land Customer Type Tax Levy (1) Levy Valuations Arbors at California Oaks Commercial $67,518 0.180% $13,135,050 ADP Rancho Temecula Commercial 66,139 0.16% 20,713,036 Redhawk Towne Center II Commercial 60,979 0.16% 20,326,476 Medline Industries Commercial 56,662 0.15% 10,731,457 Vineyards Temecula Apt. Commercial 54,621 0.14% 18,207,000 Inland Western Temecula Commons Commercial 51,229 0.13% 17,076,370 Advanced Cardiovascular System Inc. Commercial 50,642 0.13% 16,880,818 Temecula Creek Villas Commercial 50,225 0.13% 16,741,585 Rancho Calif. LTD. Partnership Commercial 48,953 0.13% 16,317,665 Temecula Towne Center Assoc. Commercial 48,657 0.13% 16,218,885 Total Principal Taxpayers 551,626 1.45% 166,348,342 Total Other Taxpayers 37,589,733 98.55% 5,398,892,879 Total Tax Levy $38,141,359 100.00% $5,565,241,221
Source: Rancho California Water District
17 Rancho California Water District Introduction
Population Historically, the District’s customer base was comprised of a mix of agricultural, residential, landscape, commercial and miscellaneous water accounts. Continued growth in the last decade has Agriculture increased the customer base from 40,197 to 44,291 customer accounts. Growth continues to occur primarily in the residential category, with 86.0% of total accounts, resulting in 41.7% of total consumption. The agricultural customers have the highest average consumption, creating almost the same production demands on the system. Although comprising only 3.4% of the accounts, 39.2% of the total water demands are for agricultural purposes. Other
Within the District’s service area, population is expected to continue to grow over the next 25 years at an average annual rate of approximately 1,158 persons for a total of approximately 28,950 new residents, representing a 1.5% annual growth rate for a total growth rate of approximately 21.7% over the projection period.
Population Estimate
Murrieta Temecula
107,279 2015 108,920
108,368 2014 109,428
105,832 Fiscal Fiscal Year 2013 104,879
105,300 2012 103,403
100,000 102,000 104,000 106,000 108,000 110,000
Source: January Revised Estimates: State Dept. of Finance
18 Rancho California Water District Introduction
Weather The regional climate is Mediterranean with hot, dry summers and cool, wet winters. Summer daytime temperatures are in the mid-80 to high-90 degrees range. The area’s temperature is influenced by prevailing onshore winds from the Pacific Ocean and the rain shadow effect from the Santa Rosa Mountains. The “Santa Ana winds” can cause periods of extremely hot weather with dry winds. Winter daytime temperatures are mild averaging in the mid-60 degree range. The region’s average monthly maximum temperature is 80.8 degrees, based on weather data from Sun City (nearest weather station to Temecula).
Residential/Housing Riverside County has been the fastest growing major county in California. The Temecula/Murrieta area enjoys a level of affluence, which places it in the upper ranks among communities in the Inland Empire. As well, the regions high discretionary income makes the area an attractive location for retailers. The cities retail sector consistently outperformed statewide growth trends.
Median Household Income
2010-2014 $90,000
$80,000 $70,000 $60,000 CA $50,000 $40,000 Murrieta $30,000 Temecula $20,000 $10,000 $0
$78,535 $74,401 $61,489
Source: US Census
With housing prices higher in the San Diego, Orange, and Los Angeles Counties, families are looking inland at quality communities like Temecula and Murrieta. The cities of Temecula and Murrieta experienced moderate growth rates of 3.6% and 2.9% respectively, which were slightly less than the County average of 5.3%.
19 Rancho California Water District Introduction
Median value of owner-occupied housing units, 2010-2014
Temecula: $311,100 California: $371,400
Median value of owner-occupied housing units, 2010-2014
Murrieta: $287,700 California: $371,400 Source: US Census
The late 2000’s experienced a major decline in the housing development and growth slowed again during the recent economic recession. RCWD is still a growing water agency. The District is closely monitoring land development in its service area and will continue to reliably and responsibly meet the challenges of new development.
Source: Rancho California Water District
20 Rancho California Water District Introduction
Agriculture Agriculture remains a leading source of income in Riverside County. Principal agricultural products are milk, eggs, table grapes, grapefruit, nursery, alfalfa, dates, lemons, and avocados. Riverside County’s total agricultural production is derived from four separate and distinct districts: Riverside/Corona, San Jacinto/Temecula Valley, Coachella Valley, and the Palo Verde Valley. A table comparing the value of the agricultural crops in each of the districts for 2012 through 2014 is presented in the table below.
Temecula Wine Country
2012 2013 2014 Riverside/Corona $111,308,300 $110,078,000 $96,205,000 San Jacinto/Temecula 157,746,500 165,035,000 175,767,000 Coachella Valley 543,657,600 615,621,000 625,602,000 Palo Verde Valley 155,320,000 167,701,000 171,013,000 Total Crop Valuation $968,032,400 $1,058,435,000 $1,068,587,000
Source: Riverside County Agricultural Commissioner The main crop types within RCWD’s service area are perennial and include wine grapes, citrus, and avocados totaling more than 20,000 irrigated acres or approximately 20% of the District’s service area. Avocados are produced on the majority of the agricultural land in the Santa Rosa Division. Grapes occupy approximately one-half of the agricultural land in the Rancho Division and citrus occupies approximately one-third of agricultural land in the Rancho Division.
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Budget Process The budget process began as a team effort in November 2015, starting with a planning meeting where management discussed the proposed budget schedule and major budget assumptions. Thereafter, the General Manager and staff conducted workshops to define the 2016 Strategic Objectives and target activities. These objectives are supported by District Personnel through the implementation of plans that are created to address key issues and completion of the District’s target activities. Finally, staff develops the budget requirements, reviews and consolidates requests, and compiles the approved budget. During this process, meetings were held with directors, division managers and supervisors to discuss budget assumptions, procedures, requirements and changes from the prior year’s budget. All requests for new capital improvement expenditures were reviewed in detail by the Engineering Division in accordance with the District’s water and wastewater master plans prior to being submitted for Board review. All requests for new vehicles and equipment and computer outlays were reviewed by the applicable manager for consistency with District procedures. With the District goals of budgeting effectiveness and accountability as well as minimizing water and sewer rate impacts, Divisions are required to provide detailed support by activity for each budgeted amount. This support was prepared as a guideline for expenditures throughout the entire budget period and to provide accountability for any subsequent activities and related expenditures not included in budgeted amounts. Additionally, Divisions were required to review and update goals, objectives, and performance measures and provide a list of accomplishments for the last year. In a series of budget review meetings, the Board reviewed the capital improvement and capital outlay requests, planned corrective maintenance requests, staffing requirements and operating statements. Input from these meetings was included in the final budget draft. It was determined that the draft budget was balanced–estimated expenditures were equal to estimated revenues for the fiscal year. After Board review and discussion of the draft budget, the General Manager’s recommended budget was presented to the Board of Directors for approval at the first board meeting in June. The annual budget for fiscal year 2016-2017 reflects management’s commitment to incorporate the District’s short and long-term goals and objectives into our daily activities by integrating the results of our strategic planning efforts into the budget process. Consistent with the concepts of budgeting by objectives, these goals and objectives have been utilized to develop detailed departmental action plans which in turn are translated into dollars via the budget process.
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To accomplish a meaningful connection between strategy and resource allocation, each division of the District has created a divisional mission statement defining its role in supporting the District’s overall mission, goals, and objectives. Furthermore, each department has created a narrative statement, which defines its role in supporting its divisional mission. This process has established the meaningful connection between District the functional levels of the District where action is taking place and Mission the mission Statement of the District. Departmental budgets are then created Strategic allocating resources necessary to support specific plans developed Objectives to meet
the District’s mission. This process ensures that goals, Divisional objectives, and plans are transmitted to the level of the Mission Statement organization where action can take place and that Supports limited resources are allocated to prioritized items. District Mission Departmental Role Therefore, dollar figures in the budget document represent Supports Division Mission Level for estimates of the cost to carry out the District’s intended Each Mgr. to strategic operating plans, as opposed to an extrapolation of Develop a Plan and Resouce historical numbers. Requirement The budgets derived through the above process represent a summary of each department’s operating plan and can be used by management to measure the accomplishment of their goals. Additionally, the District uses performance measurements to make judgments about the effectiveness and efficiency of our operations as well as to drive improvements, which successfully translate our strategies into action. Each department has identified performance indicators to help monitor its progress toward meeting its objectives. These performance indicators are being reviewed and analyzed on an annual basis to ensure that the framework is both well understood and supports the District’s objectives. Specific performance measurement indicators are detailed in the departmental budget section of this document. All District employees have received formal training in the “Quality Improvement Process” Mission (QIP). The District utilizes the QIP process to Objective close the loop on performance by generating and implementing solutions that keep performance aligned with the District’s strategic plan. Performance Quality Establish Link The QIP process is done at a departmental level, Measurement a comprehensive asset management team level, Improvement and at an ad hoc cross-functional team level to Process ensure that all relevant parties at all levels in the (QIP) organization are involved.
Resource Department Allocation Plan
23 Rancho California Water District Introduction
Budget Calendar As part of the initial budget process, budgetary staff prepares a schedule for the development of the budget for that year. The schedule is then distributed to all Division Directors and management staff for their reference in submitting their data for review, approval, and incorporation into the final budget. The schedule for the development and review of the Fiscal Year 2016-2017 Budget Schedule is below:
Date Activity/Description November 5, 2015 Budget Development Goal Setting November 16, 2015 High Level Management Team Goal Setting December 16, 2015 C.I.P. Corrective Maintenance Budget Meeting January 5, 2016 Fee for Service Review Complete District Staff Mtg. – Review Budget Process, Benchmarks, Calendar, and January 12, 2016 Workshop January 18, 2016 Sales Projections January 4-18, 2016 FY 2015-2016 6- Month Op. Budget Review/Analysis Available January 21, 2016 Strategic Planning Workshop January 28, 2016 E&O Committee Meeting - Water Production Audit February 4, 2016 FAC Meeting – Budget Update/Demand Projections February 8, 2016 Water Production February 11, 2016 Budget Packets Due February 16- March 1, 2016 Departmental Budget Review and Negotiation February 25, 2016 E&O Committee Mtg. 2016-17 Capital & Corrective Maint. Projects March 3, 2016 FAC Committee Non-Op. Budget/Fee for Service Review March 8, 2016 Board of Directors Budget Workshop March 22, 2016 Adj. FAC Committee - Op. Budget/Rate Recommendations March 23, 2016 Annual Agricultural Customer/Farm Manager’s Meeting March 31, 2016 Operating Budget and Rate Recommendations April 14, 2016 Budget Workshop/Board of Directors Meeting Prop. 218 Compliance) *Mailed Notice of Rate Change Beginning April 11, 2016 Special Mailing – April 19, 2016 June 30, 2016 Board of Directors Meeting/ Public Hearing/Adopt Budget
24 Rancho California Water District Introduction
Budget Organization RCWD is organized into four divisions based on various types of services and legal requirements. These divisions consist of the Rancho and Santa Rosa Water Divisions, the Santa Rosa Water Reclamation Facility (SRWRF) known as the Wastewater Division and finally, the Resource Division, which is used to accumulate and allocate shared costs such as source of supply and indirect expenditures. The Divisions and their respective order are identified as follows:
Division I Division II Rancho Water Santa Rosa Water Division Division
Division IV Division V Resource SRWRF Wastewater Accumulation & Division Allocation Division
Balanced Budget According to Rancho California Water District, a budget should be balanced with current revenues equal to or greater than current expenditures/expenses. The District may elect to utilize rate stabilization or drought reserves to help implement more manageable rate increases. The District includes in its definition of a balanced budget the use of these reserves for this purpose. Costs are accrued to the proper expenditures year to prevent an erroneous presentation of a balanced budget at the expense of future years. Budget Amendments The Board does not formally amend the budget after approval. Subject to the approval of the Board of Directors, the General Manager has full charge and control of the District’s expenditures to ensure that operating and capital expenditures in each fiscal year are within the budgetary guidelines and to ensure that the District’s goals and objectives are met. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Board of Directors or General Manager as described in this budget. The General Manager has authority to enter into contracts and agreements and expend funds up to $50,000. Purchases in excess of $50,000 not approved in the budget require approval of the Board of Directors.
25 Rancho California Water District Introduction
Budget Basis The District utilizes the accrual basis of budgeting which is the same as the basis of accounting used in the audited financial statements, recognizing revenues and expenses in the period in which they are earned and incurred, respectively. The District accounts for its water and wastewater operations activities as enterprise funds. An enterprise fund is an accounting entity with a self-balancing set of accounts established to record the financial positon and results that pertain to a specific governmental activity and conforms to the guidelines of Generally Accepted Accounting Principles (GAAP). The activities of enterprise funds closely resemble those of private business enterprises where the purpose is to conserve and add to resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges.
Proposition 218 Compliance The District complies with the noticing requirements of Proposition 218 by mailing a newsletter informing customers of the proposed rate changes and the date of the public hearing where these rate changes will be considered. The mailed newsletter was accomplished with a special mailing on April 19, 2016. Additionally, any property owner not yet connected to the system receives a separate mailing. All noticing is accomplished at least 45 days prior to the public hearing.
26 Rancho California Water District Introduction
Financial Policies The Rancho California Water District financial policy document incorporates many of the District’s financial management practices that are used by District Staff as guidelines for operational and strategic decision making related to current and future financial matters. The purpose of establishing these policies is to identify acceptable and unacceptable courses of action, thus establishing parameters in which the District can operate as well as to provide a standard against which the District’s fiscal performance can be reviewed. Some policies are flexible when they are utilized by District staff as performance measurement tools to monitor the District’s finances, while others are restrictive to emphasize accountability. Due to the above reasons, these policies are drafted as a living document to maintain their effectiveness in order to accommodate changes. District Staff and board members will review these policies on an annual basis to accommodate minor changes to the existing policy or major shifts in financial priorities as approved by the District’s Board of Directors at its sole discretion. The District’s financial policies encompass the following functional areas: . Investment Policy; . Cash Reserve Policy; . Land Secured Financing Policy; . Debt and Financial Management Policy; and . Interest Rate Swap Policy. Investment Policy-Revised February 2015 The Investment Policy set forth by Rancho California Water District for the following purposes: . To establish a clear understanding for the governing Board, management, responsible employees, citizens and third parties of the objectives, policies and guidelines for the investment of the District’s idle surplus funds; . To offer guidance to investment staff and any external investment advisers on the investment of District funds; and . To establish a basis for evaluating investment results. The District establishes investment policies that meet its current investment goals. The District shall review this policy annually and may change its policies as its investment objectives change. The primary objectives, in priority order, of investment activities shall be safety, liquidity, and return. In order to achieve these objectives, the District has segregated its funds into three portfolios. The Construction fund is structured to meet a schedule of payouts for capital expenditures. The Cash Management Account is invested in short-term securities to meet operating needs. The Operating Reserve is invested in somewhat longer –term securities in order to provide for future needs. As in the District’s general investment policy, the primary objectives for investment of the Rancho California Water District’s Retirement Medical Benefits Plan monies shall be safety, liquidity, and return. Cash Reserve Policy In order to protect Rancho California Water District’s investments in various assets and to satisfy its commitments under its numerous financial, regulatory, and contractual obligations; the District has developed and segregated a number of funds and reserves. The efficient and discrete management of these
27 Rancho California Water District Introduction
reserves, when combined with their appropriate fortification add additional assurance that the current levels of service reliability and quality will continue into the future. These reserves can be broken out into four types that include operating reserves, debt reserves, capital facility reserves, and replacement reserves. Operating reserves would predominately be funded from water and wastewater user rates and be accumulated in the District’s General Fund. Debt reserves are those funds that relate to the management of the District’s $316,010,000 in outstanding bonded indebtedness. The proceeds from these bonds have been used to fund the construction cost of the District’s backbone utility plant. These funds are accumulated in a debt service related fund from which annual principal and interest costs are paid and contractually required reserve trust funds held for the benefit of bond insurers and bondholders. Capital facility reserves are funded from developer impact fees and proceeds from bonds. Their collection and use are restricted under state law. These funds are used to finance the construction of required water- and wastewater-related facilities. Replacement funds are funded from charges reflected on wastewater bills and are restricted for the replacement of aging utility plant. Current estimates demonstrate that future facility replacements will need to be funded with a combination of replacement funds generated from user fees and future bond proceeds. Land Secured Financing Policy The Rancho California Water District has created these policies on debt financing as guidelines to assist all concerned parties in determining the District’s approach to land-secured financing. It is the District’s intent to support projects, which address a public need and provide a public benefit. These policies are designed to comply with Section 53312.7(a) of the Government Code. The District and the Board of Directors will consider the use of community facilities districts, or fixed lien special assessment districts as well as other methods of public financing to assist the development of commercial, industrial and/or residential property. The minimum principal amount of any land secured financing shall be $150,000. While specific criteria are established in these Policies, for land secured financing between $150,000 and $1,000,000, the structure and processing procedures will be determined on a case-by-case basis. The District also reserves the right to amend or modify these Policies at any time as well as make exceptions or changes for specific financing projects, as facts and circumstances so warrant. Debt and Financial Management Policy General Management Policy The District will provide for a periodic review of its financial performance, and review its performance relative to the financial policies outlined herein. These policies will be taken into account during the capital planning, budgeting, and rate setting process. . In recognition of periodic changes in the cost of providing service to system users, service costs and fees will be reviewed annually and adjusted commensurately. . The District will present any proposed adjustments to existing rates, fees and charges at public meetings, and will consider recommendations and input from the public as it relates to such proposed changes. . All District funds will be invested according to the Investment Policies of the District.
28 Rancho California Water District Introduction
. Necessary appropriations for annual debt service requirements will be routinely included in the District’s annual budget. . The District will maintain proactive communication with the investment community, including rating agencies, credit enhancers, and investors, to ensure future capital market access at the lowest possible rates. Financial Management Policy The District utilized a comprehensive planning process to determine its long-term capital needs. The District evaluates each capital project in relation to established levels of reserves, current rate structure, expected asset life/replacement timeline, and available revenue sources to ensure that adequate financial resources are available to support the District’s financial obligations. The District’s Debt and Financial Management, Land-Secured Financing, Reserve, Investment, and Swap Policies are integrated into the decision-making framework utilized in the budgeting and capital improvement planning process. As such, the following policies outline the District’s approach to debt management. The District will evaluate financing for each capital project on a case-by-case basis. The District will seek to pay for all capital projects from current revenues and available reserves prior to or in combination with the use of debt. The District will seek to issue debt only in the case where there is an identified source of repayment. Bonds will be issued to the extent that (i) projected fixed revenues are sufficient to pay for the proposed debt service together with all existing debt service covered by such fixed revenues, or (ii) additional projected revenues have been identified as a source of repayment in an amount sufficient to pay for the proposed debt. Debt issuance for capital project will not be considered unless such issuance has been incorporated into the capital improvement plan (Long Range Financial Plan). User Fees and Water Rates will be set at adequate levels, which are fair and nondiscriminatory, to generate sufficient revenues to pay all Operating and Maintenance costs, to maintain sufficient operating reserves, and to pay debt service costs, if necessary. Property Assessment and Connection fees will be maintained at a level sufficient to finance a portion of growth-related capital costs and cover related annual debt service requirements. Property Assessments also will be utilized to finance a portion of replacement costs and related annual debt service payments. Debt and Capital Management Policy The following policies formally establish parameters for evaluating, issuing, and managing the District’s debt. The policies outlined below are not intended to serve as a list of rules to be applied to the District’s debt issuance process, but rather to serve as a set of guidelines to promote sound financial management. In issuing Debt, the District objective will be to: Achieve the lowest cost of capital Ensure ratepayer equity Maintain high credit ratings and access to credit enhancement
29 Rancho California Water District Introduction
Preserve financial flexibility Interest Rate Swap Policy-Revised October 2013 The purpose of the Interest Rate Swap Policy of Rancho California Water District is to establish guidelines for the use and management of all interest rate management agreements, including, but not limited to, interest rate swaps, swaptions, caps, collars, and floors incurred in connection with the issuance of bonds, notes and other obligations. This Policy sets forth the manners of execution of swaps, provides for security and payment provisions, risk considerations and certain other relevant provisions in the context of being responsive to the 2003 Recommended Practices of the Government Finance Officers Association (GFOA) regarding the contents of an interest rate swap policy. The failure by the District to comply with any provision of this Policy shall not invalidate or impair any Agreement, The issuance of Bonds involves a variety of interest payment obligations and risks that varieties of financial instruments are available to reduce, offset, or hedge. The structure of the District’s debt is often designed to manage the assets and liabilities in its balance sheet. It is the policy of the District to also consider the use of Swaps and other financial instruments to better manage its assets and liabilities. The District may execute a Swap if the transactions can be expected to result in one or more of the following or any similar type of benefit. Reduce exposure to changes in interest rates on a particular financial transaction or in the context of the management of interest rate risk derived from the District’s overall asset/liability balance. Result in a lower net expected cost of borrowing with respect to Bonds. Manage variable interest rate exposure consistent with prudent debt practices. Manage exposure to changing market conditions in advance of anticipated issuance of Bonds (with anticipatory hedging instruments). Achieve more flexibility in meeting overall financial objectives that cannot be achieved in conventional markets. For example, entering into a swaption with an upfront payment. Provide customized cash flows to match required payment obligations or revenue projections. The District will not use Agreements that: Are speculative or create extraordinary leverage; Lack adequate liquidity to terminate without incurring a significant bid/ask spread; Provide insufficient price transparency to allow reasonable valuation; Provide exposure to currency risk, sovereignty risk, commodity risk or the use of credit derivatives – unless directly linked to the Districts of the Counterparty’s credit.
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District Mission, Vision, and Values
•“The mission of the Rancho California Water District is to deliver reliable, high-quality water, wastewater, and reclamation services to its Mission customers and communities in a prudent and sustainable manner.”
•“Rancho California Water District is an innovative, responsive, and prudent steward of the water service responsibility entrusted to it.” Vision
•Serving Our Customers with Vision, Confidence, and PRIDE! Values
Mission The District accomplishes its mission by setting strategic goals and objectives annually. This planning process allows the District to revisit goals and objectives on an annual basis, measures effectiveness and determines priorities based on current economic conditions, resources, environmental concerns, and regulatory demands. Vision Key elements of the vision include operating in a cost-effective manner, high-quality customer service, proactive engagement, innovation and operating sustainably (including system operations, human resources activities, and financial management).
Values In pursuit of the District’s Strategic Plan Objective to “Promote an Open and Professional Work Environment throughout the Organization”, staff launched an effort to develop shared organizational values with participation throughout the organization that will guide RCWD’s actions towards one another, our customers, and our community.
Professionalism: Responsibility: Integrity & Ethics: Dedication: Equality: Reflected in the Over financial and Uphold an adherence In providing Commit to attitude and abilities operating assets to moral and ethical professional, quality maintaining a displayed in dealing through sound principles and to services to our balanced workplace, with our employees, business judgment remain accountable partners, customers, by utilizing open customers, vendors, for our actions and community communication and and community diverse backgrounds, skills, and aspirations of all District employes
31 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Strategic Planning Through a strategic workshop held on January 23, 2014, RCWD’s Board and Executive Management initiated an update of its Strategic Plan. A discussion and confirmation of the existing mission, vision, and values took place. This year, six Board priority “Focus Areas” were added to the District’s Strategic Plan and represent key initiatives for the coming years.
The Board ratified the five guiding principles to focus and drive the Strategic Plan: reliability, quality, stewardship, sustainability, and customer and community. RCWD is committed to these principles to achieve our vision of being an innovative, responsive, and prudent steward of the water service responsibility entrusted to it.
GUIDING
PRINCIPLES
Reliability RCWD will provide a level of water reliability that ensures customers’ water needs are met.
Quality RCWD will provide safe water and high-quality water and services to its customers.
Stewardship RCWD will exercise good stewardship of financial and operating assets through use of sound, cost-effective business judgment.
Sustainability RCWD will address, adopt, and implement policies that support the social, economic and environmental values of the service area.
Customer and RCWD will inform and engage its customers and community leaders as it Community pursues reliable, high quality, and sustainable water supply.
Within these 5 guiding principles are several important initiatives for Rancho Water in the coming years. These initiatives include revisiting and updating the water supply portfolio, implementing a water quality/brine management strategy to enable enhanced recycling of water and groundwater conjunctive use, implementing and communicating drought-response needs and actions,
32 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
implementing the wastewater treatment strategy at the Santa Rosa Water Reclamation Facility, continuing to make organizational enhancements and optimally integrating the Vail Lake property into our system. Each of these is briefly discussed below.
Initiative 1 – Enhance the RCWD water supply portfolio
Rancho Water last updated its Integrated Resources Plan in 2005. Significant changes have occurred since that time, including expanded state requirements for conservation, climate change considerations, rate structure changes, rising imported water costs, the Bay Delta Conservation Plan and Vail Lake acquisition. A reliable water supply will support economic development and the quality of life of the region.
Initiative 2 – Water Quality Preservation and Enhancements
In addition, Rancho Water overlies a productive groundwater basin, the expanded use of which would add significant reliability to the service area. Additionally, the water quality of the basin must be protected in order to realize the full economic benefit of potential increased utilization of this critical local resource.
Optimal use of the groundwater basin involves the need to dispose of the residual brines from recycled water and groundwater treatment. Brine management is a critical feature of managing the groundwater basin for the long-term benefits of the ratepayers, as Rancho Water targets optimizing the utilization of the local groundwater aquifers to insure water quality protection and maximizing groundwater production opportunities in order to reduce dependence on imported water supplies.
Such activities as incorporation of the Local Area Management Program (LAMP) into the On-Site Wastewater Treatment System (OWTS) policy of the County of Riverside will protect the groundwater quality.
Providing a long-term salt management strategy will create a solid foundation for building further water reliability.
Initiative 3 – Drought response
Current and future droughts will challenge Rancho Water on the water supply, finance and public outreach fronts. Implementation of the Water Shortage Contingency Plan and continued implementation of the Water Use Efficiency Program will be key activities in the coming year. Rancho Water’s Communications Plan must be updated to ensure it reflects current conditions.
33 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Initiative 4 – Implementation of the Santa Rosa Water Reclamation Facility (SRWRF) wastewater treatment strategy Rancho Water has contracted with the Elsinore Valley Municipal Water District and Western Municipal Water District for treatment services over the last 25 years. Future regional service is through the recently formed Santa Rosa Regional Resource (SRRRA) Joint Powers Authority (JPA) between Rancho Water and the same agencies. In addition, rehabilitation of the SRWRF is is currently in the design phase.
Initiative 5 – Implement Organizational Enhancements
These include planning for and transferring institutional knowledge to ensure that appropriate skill sets are retained and enhanced. The skills Rancho Water needs to be successful in the future are also changing. Ensuring we develop and retain these skills in a competitive job market will be critical. There is also a need to develop and implement improved employee communication approaches to enhance workforce knowledge and engagement.
It is important for Rancho Water to continue to be effective and efficient stewards of the public resources entrusted to it. Development and tracking of metrics to ensure accountability will be continued and optimized. This initiative emphasizes the need to proactively examine opportunities to improve services and efficiency, recognizing Rancho Water’s growing emphasis on operations and maintenance.
Initiative 6 – Vail Lake Integration
Rancho Water’s recent acquisition of the Vail Lake property presents a variety of opportunities and challenges. A Property Guidance Document was recently approved which would govern the acceptable uses of the various Vail properties for recreational and income generating activites. Further planning and property interest solicitation is underway for potential property leasing in line with effort to make the properties financially sustainable. Furthermore, completion of a Vail Lake Resource Management Plan (RMP) will guide Rancho Water in leveraging the opportunities and meeting the operational challenges. Staff will also conduct an evaluation of the potential to develop a riparian mitigation land bank.
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PROCESS
Regularly Update the Plan
Develop Staffing & Resource needs w/Annual Budget Process
Scorecard - Key Performance Indicators to Measure Progress
Develop Strategic Objectives & Targeted Activities
Review Mission, Values, establish Guiding Principles
Evaluate Strengths, Weaknesses, Opportunities & Challenges
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Guiding Rancho Water will provide a level of water reliability Principle 1: that ensures customers’ water needs are met Reliability
Strategy 1 – Develop appropriate water resource mix to meet the water reliability needs of the community we serve Objective 1: Review and update the Integrated Resources Plan in light of current resources and economic trends Objective 2: Track opportunities for water transfers Objective 3: Communicate the plan to and engage the Board in policy establishment Objective 4: Develop resource-planning tools and models to support long-term planning Objective 5: Modify capital program to reflect updated water supply portfolio
Strategy 2 - Increase the use of recycled water in the service area Objective 1: Process onsite recycled water conversions Objective 2: Coordinate water and recycled service opportunities with area agencies
Strategy 3 – Develop and implement a comprehensive groundwater management strategy
Objective 1: Work with Riverside County Health Department to develop a Local Agency Management Plan that addresses Rancho Water concerns
Objective 2: Conduct additional basin modeling
Objective 3: Implement groundwater conjunctive use project – Phase I & II Objective 4: Engage with Eastern and Western in Metropolitan negotiations on access to replenishment of water Strategy 4 – Develop Brine Management Strategy and Future Recycled Water Project Objective 1: Complete preliminary design Objective 2: Negotiate and finalize institutional arrangements Objective 3: Complete final design Objective 4: Complete California Environmental Quality Act documentation Objective 5: Secure additional funding assistance Objective 6: Complete construction
Strategy 5 – Engage on statewide water policy issues
Objective 1: Work with the Board to establish the RCWD position on the Bay Delta Conservation Plan
Objective 2: Track and engage on regulations and legislation that affects Rancho Water
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Guiding Rancho Water will provide safe water and high- Principle 2: quality services to its customers. Quality
Strategy 1 – Respond to anticipated near-term water shortages through rate structure modification, conservation assistance, customer service, and outreach Objective 1: Implement the newly updated Water Shortage Contingency Plan
Objective 2: Increase local messaging and outreach in anticipation of water supply constraints
Strategy 2 – Address planning for long-term salinity management/nutrient management Objective 1: Implement the Salt / Nutrient Management Plan with regional partners Objective 2: Track progress on wine country infrastructure
Strategy 3 – Anticipate and comply with regulatory and environmental changes Objective 1: Continue to meet regulatory requirements water/wastewater/environmental/security Objective 2: Evaluate impact of potential changes in water quality regulations on RCWD well production and cost of operations Objective 3: Track regulation development and engage where appropriate
Strategy 4 – Provide safe drinking water to our customers by ensuring all current and anticipated drinking-water regulations are met or surpassed Objective 1: Meet all standards 100 percent of the time
Guiding Rancho Water will exercise good stewardship of Principle 3: financial and operating assets through use of Stewardship sound, cost-effective business judgment.
Strategy 1 – Plan and prepare for catastrophic emergencies Objective 1: Conduct annual joint agency hazardous material response drill at the SRWRF-CCR Title 19 compliance Objective 2: Conduct annual NIMSCAST report to FEMA. Report RCWD compliance with the National Incident Management System (NIMS) Objective 3: Conduct RCWD Emergency Operations Plan training &/or exercise periodically and implement lessons learned Objective 4: Evaluate EOC needs
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Objective 5: Assess business resumption capability
Strategy 2 – Research and analyze beneficial outside service agreements Objective 1: Evaluate potential service agreement for Western Municipal Water District retail service area Objective 2: Evaluate providing sewer collection maintenance services to adjacent areas Objective 3: Achieve the formation of a JPA with Santa Rosa Water Reclamation Plant agencies
Strategy 3 – Optimize real estate management (acquisition and use)
Objective 1: Develop a plan for Tarwater Property suitable for developing income-producing property program Objective 2: Acquire 1305 and 1610 PZ reservoir sites Objective 3: Investigate and acquire potential sites as identified in the Integrated Resource Plan
Strategy 4 – Maximize outside funding opportunities Objective 1: Complete Proposition 84 Integrated Regional Water Management and other state/local grants Objective 2: Track and report grant opportunities/wins Objective 3: Pursue Title XVI funding – Annual Appropriations Objective 4: Evaluate and Pursue Opportunities for Grant Funds from proposed 2014 Water Bond Objective 5: Implement adopted grant management procedures
Strategy 5 – Maintain, implement, and enhance the long-range financial plan Objective 1: Implement Asset Management Planning Objective 2: Update Water Facility Master Plan Objective 3: Update Wastewater Facility Master Plan Objective 4: Annually develop a 5-year Capital Improvement Plan
Objective 5: Continue participation in the Rate Refinement Workgroup
Objective 6: Achieve cash reserve and revenue levels as identified in Cash Reserve Policy
Objective 7: Investigate reserve and revenue protection strategies
Objective 8: Review budget-based tiered rate model and cost allocations to tiers
Objective 9: Prepare an annual update to the Long-Range Financial Plan
Objective 10: Annually update financial policies
Objective 11: Conduct an annual credit rating review process
Strategy 6 – Implement long-term plan for wastewater treatment Objective 1: Initiate and complete rehabilitation of the Santa Rosa Water Reclamation Facility (SRWRF) Objective 2: Establish JPA for future wastewater service at the SRWRF
38 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Strategy 7 – Pursue maintenance on existing facilities that meets or exceeds industry norms Objective 1: Implement, integrate, and utilize a replacement Computerized Maintenance Management System (CMMS)
Objective 2: Evaluate maintenance level of service standards
Objective 3: Imbed maintenance standards in the maintenance program Objective 4: Rehabilitate wells to restore system capacity
Strategy 8 – Continue to use Effective Utility Management (EUM) as a management tool for optimizing RCWD activities Objective 1: Continue to track EUM performance measurement indicators
Strategy 9 – Optimize external shared service opportunities Objective 1: Explore bulk purchase of chemicals Objective 2: Explore bio-solid disposal partnership Objective 3: Explore state purchase pools Objective 4: Explore equipment sharing with adjacent regional government entities
Objective 5: Explore O&M opportunities to provide or receive services to/from other government/private entities
Strategy 10 – Improve organizational effectiveness
Objective 1: Further use of organizational performance measurement/management
Objective 2: Implement remaining Track 2 items of Enterprise Resource Planning (ERP) – Document Management and Performance Management Objective 3: Implement Track 3 of ERP Customer Information System (CIS) Project Objective 4: Implement Geographic Information System (GIS) Master Plan
Objective 5: Review outsourcing opportunities related to fleet maintenance, inspection, leasing/ maintenance Objective 6: Examine vacancies to determine optimum staffing levels Objective 7: Conduct post technology implementation audits to determine value provided Objective 8: Track and evaluate overtime trends Objective 9: Improve internal communications to enhance staff awareness and engagement Objective 10: Brief all employees on the Strategic Plan Objective 11: Continue to set and communicate performance metrics to all employees Objective 12: Provide appropriate education & safety-related training for all employees Objective 13: Review District website and for additional customer functionality opportunities Objective 14: Update the Information Technology Master Plan Objective 15: Identify and phase out, as appropriate, duplicate data handling systems
39 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Strategy 11 – Promote an open and professional work environment throughout the organization Objective 1: Reinforce partnerships with the bargaining units to promote a spirit of cooperation, respect, and trust Objective 2: Reinforce District value statement – “PRIDE” Objective 3: Proactively address appropriate policy and process changes Objective 4: Proactively and collaboratively address grievances Objective 5: Provide cooperative cross-functional problem-solving opportunities
Strategy 12 – Attract, retain, and develop quality staff Objective 1: Maintain competitive compensation & benefits package Objective 2: Optimize human resources of organization through involvement & empowerment Objective 3: Conduct annual performance management and evaluation Objective 4: Develop a succession plan Objective 5: Track attrition and causes Objective 6: Assess and revise employee-training programs to develop bench strength Objective 7: Include a cross-divisional review element in employee performance evaluations
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Guiding Rancho Water will address, adopt, and implement policies that support the social, Principle 4: economic, and environmental values of the Sustainability service area.
Strategy 1 – Implement effective water use efficiency (conservation) plan that meets or exceeds voluntary best management practices and/or legislative requirements Objective 1: Present Water Use Efficiency Blueprint to Board for approval
Objective 2: Complete 2015 Urban Water Management Plan/Agricultural Water Plan
Objective 3: Provide customer information and assistance – water use efficiency evaluations Objective 4: Target Demonstration Efforts – Partner with local Homeowner’s Associations to promote and encourage sound water use through efficient irrigation and plant materials Objective 5: Develop a Financial Incentive Program targeted to the commercial, industrial, and institutional customer sector Objective 6: Continue to provide a Financial Incentive Program tailored to the agricultural customer sector Objective 7: Conduct research projects to demonstrate new agricultural irrigation efficiency techniques and technologies Objective 8: Continue to implement residential and landscape water use efficiency programs Objective 9: Work cooperatively with the Cities of Temecula and Murrieta and the County of Riverside to develop effective landscape ordinance that is consistent with encouraging efficient landscape Objective 10: Implement conservation program review recommendations Objective 11: Comply with state-mandated 20% urban per capita water use reduction by 2020 legislation, SB x7-7 Objective 12: Establish efficiency requirements for recycled water to maximize efficient use of the resource Objective 13: Increase representation of retailers, particularly with a finance perspective, in the California Urban Water Conservation Council (CUWCC) regarding the value of water budget based rate structures to achieve conservation Objective 14: Provide customer information and assistance – Workshops and information
Objective 15: Implement conservation program review recommendations
Strategy 2 – Optimize the Vail Lake asset Objective 1: Prepare a Resource Management Plan for Vail Lake
Objective 2: Evaluate development of a riparian mitigation land bank
Objective 3: Develop a financial and operational sustainability plan for the Vail Lake properties/assets
41 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Strategy 3 – Optimize partnerships with neighboring public agencies Objective 1: Partner with Eastern Municipal Water District, Western Municipal Water District, and Metropolitan Water District of Southern California (and others) to offer conservation programs to Rancho California Water District customers Objective 2: Work with Cities of Temecula and Murrieta and County of Riverside to pursue sustainability initiatives where practical Objective 3: Work with local school boards to communicate key water messages Objective 4: Work with local water agencies, Association of California Water Agencies, California Association of Sanitation Agencies, and others to track and comment on state legislative proposals that may impact Rancho California Water District and its customers
Strategy 4 – Optimize energy efficiencies including the economically appropriate use of renewable power Objective 1: Evaluate and implement energy-efficient systems Objective 2: Evaluate and implement alternative energy opportunities Objective 3: Utilize new Supervisory Control and Data Acquisition (SCADA) system to achieve greater energy optimization
Guiding Principle 5: Rancho Water will inform and engage its customers and community leaders as it pursues Customer reliable, high quality, and sustainable water and supply. Community
Strategy 1 – Communicate with and engage our community on water matters of importance to the region Objective 1: Continue to provide informative articles in water bill mailer, newsletter, newspaper, & other avenues Objective 2: Conduct targeted outreach to customers who may be impacted by RCWD construction projects Objective 3: Communicate strategic progress to stakeholders Objective 4: Brief key stakeholders on water supply challenges & need for their support for solutions in Sacramento Objective 5: Brief chambers of commerce & other local business groups on water supply challenges, need for Delta solution, & RCWD’s Integrated Plan for local supplies Objective 6: Brief editorial boards of local newspapers on current water supply challenges & RCWD’s Integrated Plan Objective 7: Expand executive staff involvement with local chambers & community groups
42 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Objective 8: Assess opportunities to increase customer awareness of imported water supply conditions Objective 9: Meet educational water efficiency BMP through school educational programs Objective 10: Meet and brief city councils to leverage televised broadcasts to convey water issue information
Strategy 2 – Provide prompt responses and cost-effective customer service Objective 1: Develop customer service standards Objective 2: Conduct cost-effective Customer Satisfaction/Feedback Survey every 5 years Objective 3: Track call-wait times and validate benchmarks
Strategy 3 – Minimize complaints on quality, reliability, billing, and customer service Objective 1: Track and analyze customer complaints Objective 2: Incorporate the findings into revised customer service policies/standards
Strategy 4 – Provide staff support for Board of Directors’ meetings to engage the community Objective 1: Prepare adequate and timely information to support sound policy decisions by the Board of Directors
43 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Rate Design Structure Rate Setting Philosophy Accounting for water and wastewater operations is performed on an enterprise fund basis. An enterprise fund is defined as, “a fund established to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.” As an enterprise fund, water and wastewater operations are viewed as a business. Likewise, appropriate business principles related to cost identification, cost-effectiveness, and financial reporting are addressed accordingly. As indicated by the definition of an enterprise fund, appropriate fees and charges are established to ensure the District can operate on a self-sustaining basis. In a water and wastewater utility such as the Rancho California Water District, the majority of revenue is derived from user charges. User charges are defined as “fees, rates, assessments, and billings that are charged to the beneficiaries of services.” User charges are a way of recovering costs for providing a service from those that benefit directly from that service. The total process of (1) identifying water and wastewater costs; (2) allocating costs to utility or service beneficiaries; and (3) designing rate structures to recover allocated costs is defined as the user-charge system. Some of the factors that are considered in designing appropriate rate structures include: Equity or fairness: Costs should be recovered from customers or customer classes in proportion to the costs of providing service to these beneficiaries. Legality: A user charge structure should comply with appropriate local, state and federal legal requirements. Impact on customers: The economic impact that a proposed user charge structure will have on customers should be considered. When a utility modifies its rates, costs are typically redistributed among customer classes and significant impacts can affect certain customers. Avoidance of discriminatory relationships: The user charge system should avoid placing unfair cost recovery burdens on any particular class of customers. This is accomplished by using a cost-of-service rate structure.
Establishing a cost-of-service user charge system with numerous user classes will achieve greater equity, but is complex and more difficult to implement. These trades-offs show that ratemaking is an art that carefully considers alternative rate-setting techniques to optimize the District’s cost-recovery objectives and to achieve equity among customers. Cost and Revenue Categories The District’s current rate structure is established and maintained on the cost-of-service basis as described in the preceding section. Under this system, the costs of operations and the funding of capital facilities are identified and apportioned so that the customers receiving benefits from these services are appropriately charged. When the various costs of operating the District are analyzed, the first consideration is the separation of operating costs related to the production and delivery of water from costs related to the construction and expansion of the production and delivery systems. These two categories are referred to as “operating” and “non-operating” costs.
44 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Operating Costs The operating costs are broken down into three categories, as follows: Variable Costs - These costs are created during the actual production, distribution, and delivery of water services and represent the costs per unit of water measured in hundred cubic feet or “hcf”. Fixed Costs - These costs are created by the need to maintain a utility systems capacity to deliver water to all customers and represent the cost of service availability, which must be maintained for each customer in order to preserve their share of reserved system volume. Fee for Service Costs - These costs are created by specific service needs of specific customers and do not provide a direct benefit to other utility customers. In general terms, the tenor of the law in the State of California requires that the user or requestor pay for services in direct proportion to the benefit received. Therefore, the Board of Directors has established a policy of setting the amount of the fees (or rate) to recover direct and indirect expenses related to providing the requested services as opposed to supplementing these services in the water rates. Periodically, an evaluation of all services is conducted wherein the amount of actual expense for the service is reviewed and the fee (or rate) is set or adjusted accordingly. Examples of these fees or charges would be customer turn-on and turn-off fees, meter installation fees, and other various inspection and engineering-related services. Non-Operating Costs Non-operating costs are defined and discussed in the Long-Range Capital Financing Plan section of the budget beginning on page 177. Operational Factors The following is a summary of the District’s operating environment and philosophies, which affected the preparation of the District’s annual strategic operating plan and operating budget for the Water and Wastewater Divisions. Operating Revenues It has been, and continues to be the District’s policy to fix water and wastewater rates (consisting of base water rates, energy charges, monthly capacity fees, and wastewater monthly charges) so as to cover all costs of water and wastewater operations. Water Rates and Sales Four potable water rate classifications exist in the District. Farmers, growers and ranchers pay an agricultural rate, homeowners a residential rate, businesses a commercial or an industrial rate, and developers/contractors a construction rate. All rates include payment for the amount of water used as well as an energy charge for the cost incurred in pumping water to higher elevation properties. Recycled water customers pay either an M&I rate or an agricultural rate. While growth continues to occur in the residential category, now 86.0% of the accounts; the agricultural customers continue to create the greatest production demands on the system. Although comprising only 3.4% of the accounts, 39.2% of the total water demands are for agricultural purposes. One of the greatest challenges facing the District centers on finding new ways to meet these increasing demands while minimizing the financial impact to its customers. Based on current general plans for the Cities of Temecula and Murrieta and the County of Riverside, the ultimate build out of the District is expected to include 58,587 dwelling units, 4,732 acres of Business Park and commercial areas and approximately 11,345 acres of agricultural use. According to the District’s Master Plan, the projected ultimate water demand is estimated at 111,218 acre-feet, 48.2% more than the rate of current usage in the District.
45 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
The chart below details the projected water sales for each of the next five years. While moderate growth is occurring each year as it is anticipated that conservation from the drought response will lessen in future, total sales for FY 2016-2017 are projected to be 9.5% less than the 2015-2016 budgeted amounts due to conservation efforts and implementation of a water shortage contingency plan.
5 Year Water Sales Forecast
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0 16-17 17-18 18-19 19-20 20-21
Ag M&I Recyled
Chart 5.1 Monthly Service Charges The District levies a fixed monthly fee on each water meter according to the rate of flow that the meter is capable of delivering. The philosophy behind this charge is that the fixed costs to the District will remain, irrespective of water demands and represent the cost to keep the system ready to meet demands. These fixed charges account for 28.2% of the District’s operating revenues. A more detailed description can be found in the Footnotes section, Page 73, and the Schedule of Monthly Service Charges can be found on Page 82.
46 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Sources of Water Water Utility Supply and Operations As identified in its 2015 Water Facilities Master Plan, the water resources available to the District include imported water from MWD purchased through EMWD and WMWD, natural local sources and secondary sources, such as locally available recycled water and water conservation. Local sources include the District’s right to capture native waters at Vail Lake (up to 40,000 acre-feet annually) and to appropriate local groundwater, which it does on a perennial safe yield basis. Over the last seven fiscal years, the District has lost approximately 3.8% to 7.5% of its water sources between the source and the ultimate use by the consumer as a result of pipeline breaks, evaporation from operating reservoirs and metering discrepancies. A summary of the District’s annual water production by source for the five fiscal years 2010-2011 through 2014-2015 is set forth in the table below: RANCHO CALIFORNIA WATER DISTRICT ANNUAL WATER PRODUCTION SOURCE(1)(2) Fiscal Years 2010-11 through 2014-15
Purchased Treated % of Recharged % of Local % of Recycled % of Total Water Fiscal Year Water Total Water Total Sources Total Water Total Production 2010-11 22,792 37.1 12,371 20.0 23,041 37.5 3,311 5.4 61,515 2011-12 22,376 34.0 16,301 24.8 23,626 35.9 3,472 5.3 65,775 2012-13 27,614 38.7 12,034 16.9 27,393 38.4 4,251 6.0 71,292 2013-14 31,468 41.5 11,722 15.5 28,062 37.0 4,494 5.9 75,746 2014-15 24,817 37.5 12,254 18.5 25,018 37.8 4,037 6.1 66,126
(1) All sources in acre-feet of water. (2) Amounts may not total due to independent rounding. Source: Rancho California Water District Local Sources of Water The District’s policy is to manage and protect its local groundwater resources as a top priority. Local sources of water include groundwater from underlying aquifers, which are recharged from precipitation, and stream flows. Natural local sources supplied approximately 37.8% of the District’s fiscal year 2014-2015 water demand and 37.0% of its fiscal year 2013-2014 water demand. Starting in fiscal year 1997-1998, the District began to use recharge and recovery programs utilizing imported water. Recharged water provided approximately 18.5% and 15.5% of the District’s water demand in fiscal years 2014-2015 and 2013-2014, respectively. For management purposes, the District has subdivided the Murrieta-Temecula Groundwater Basin into 14 hydrologic sub-units, the substantial portion of which is located in the Rancho Division. The perennial safe yield of local groundwater within the District is estimated to be between 20,000 and 30,000 acre feet per year depending on hydrologic conditions. The District’s knowledge of the groundwater basin has grown substantially over the past 30 years through extensive monitoring programs, a well-documented annual groundwater audit process to establish safe production targets, and the development and integration of a combined surface water/groundwater hydro-geologic computer model. All aquifers managed by the District are located in the Santa Margarita Watershed. Oversight of all groundwater production within the Santa Margarita Watershed falls under the continuing
47 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
jurisdiction of the United States District Court, in the case of the United States v. Fallbrook Public Utility District, et al. and is administered by a court-appointed Watermaster (the "Santa Margarita Watermaster"). The court appointed a Steering Committee, which is comprised of representatives of the United States, Western Municipal Water District, Eastern Municipal Water District, Fallbrook Public Utility District, MWD, Pechanga Tribe and the District. The purpose of the Steering Committee is to assist the court, to facilitate litigation and to assist the Santa Margarita Watermaster. The need for the Watermaster and the Steering Committee stems from litigation that began in the early years of the twentieth century over various water rights between the Vail Ranch and the Santa Margarita Ranch, two cattle ranches. Today, the District, through the Vail Lake Agreement, has assumed the rights and responsibilities of Vail Ranch, and the United States Marine Corps Base, Camp Pendleton ("MCBCP") is the successor in interest to the Santa Margarita Ranch. In 2002 the District and MCBCP entered into a Cooperative Water Resources Management Agreement (the “CWRMA”) which supplements the Fallbrook decree and has been approved by the Court in the Fallbrook Public Utility District Case. In general terms, the CWRMA divides the natural supply of Santa Margarita River supply one-third to the District and two-thirds to Camp Pendleton and requires the District to provide make-up water if there is a shortage in Camp Pendleton’s share of the river flows. As long as the parties comply with the provisions of the CWRMA, the long-standing water rights dispute between the District and MCBCP over the Santa Margarita River is considered to be resolved. Settling the water rights disputes in the watershed is a result of the District’s long-term management policies. In 1966 the District instituted an Agency Agreement program, which required property owners to assign management of their water rights to the District in return for acquiring service from the District. This program has now allowed the District to cover 95% of the properties within the District’s boundaries with a restriction on drilling wells and producing groundwater. Consequently, the District controls the majority of the groundwater production in the upper basin. As such, the District is able to manage the basin on a long-term sustained yield basis, which targets an annual production of approximately 20,000 to 30,000 acre-feet. Vail Lake is an important component of the District’s local water sources. It is the only surface water capture-release facility in the hydro-geologic area of the District. Vail Dam was constructed in 1948- 1949 to impound the winter flows derived from the Wilson, Kolb, and Temecula Creeks, an upstream area of approximately 319 square miles. Through the Vail Lake Agreement between Kaiser Development Co. and the District, executed in 1978, the District acquired Vail Lake and Vail Dam, as well as the right to operate the facilities for the benefit of the District’s water users. Water contained within Vail Lake is released at the base of Vail Dam into Butterfield Canyon, through which Temecula Creek flowed uncontrolled prior to the construction of the dam. The full reservoir area of Vail Dam is 1,070 surface acres. Total reservoir capacity of Vail Dam is 49,370 acre-feet. Average annual surface flows into the reservoir are approximately 12,500 acre-feet. Under an Appropriations Permit obtained from the State of California in 1948, the District may store up to 40,000 acre feet in Vail Lake each year between November 1 and April 30. The State Water Resources Control Board issued an amended Appropriations Permit 7032 in 2009 that entitles the District to use the diverted and stored water for groundwater recharge and ultimate use for all purposes throughout the District’s service area. The State Water Resources Control Board’s issuance of the amended Appropriations Permit 7032 was conditioned upon the existence of a valid Cooperative Water Resource Management Agreement by and between the District and United States Marine Corps at Camp Pendleton.
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Since 1975, a total of 185,400 acre-feet of captured surface water run-off has been periodically released from Vail Lake to artificially recharge the groundwater aquifers serving the District. In 1993, the District constructed 175 acres of improvements in its recharge facility. The installation of these facilities enables the District to recharge up to 29,000 acre-feet of imported water purchased from MWD. In an effort to protect water quality and continue to provide customers with a reliable water supply, RCWD purchased over 7,000 acres surrounding Vail Lake in Temecula through a court-ordered bankruptcy sale in August 2014. RCWD has owned Vail Dam, Vail Lake and the associated state water rights permit since 1978. The lands that surround Vail Lake were owned by various corporate entities and consist of open space, an RV campground, and associated fishing and water recreation membership operations on the lake. By purchasing the land surrounding Vail Lake, the District is seeking to protect the quality of its water supplies and enhance the reliability of those supplies. Vail Lake is an important asset to the community and the District plans to continue to protect this asset. Imported Water Approximately 57.0% of the District’s fiscal year 2013-2014 and 56.1% of the District’s fiscal year 2014- 2015 water supply was imported. Based on the District’s Master Plan, the projected future water demand is estimated at 111,218 acre-feet. The District expects that additional future water needs will be provided from increased amounts of imported water as seen in the chart below.
5 Year Production Forecast 80,000
70,000
60,000
50,000 Feet
- 40,000 Acre 30,000
20,000
10,000
0 16-17 17-18 18-19 19-20 20-21
Native Well Import Recharge Treated Import Reclaimed
Chart 5.2
Imported water purchased from EMWD and WMWD is delivered to the District from the MWD aqueducts passing through the District. EMWD generally serves the Rancho Division and the WMWD generally serves the Santa Rosa Division. The District’s ability to purchase imported water from EMWD and WMWD is based on availability and demand within the region and no assurances
49 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
can be made as to the ability of MWD to satisfy the water demands of its member agencies, including the EMWD and WMWD, and, in turn, the demands of the District to the EMWD and WMWD. The cost of treated water from imported sources currently is approximately $923 per acre-foot, which is substantially more expensive than the average cost of water from local sources. The District currently pays approximately $582 per acre-foot for import recharge water. Marginal Cost Impacts Import water costs and changes in import water requirements have a significant impact on the cost of water utility operations due to the marginal per unit cost difference between import water and local water. The cost per acre foot of import water exceeds that of local water by 500%; therefore, any changes in the quantity of import water requirements has a material impact on total water operations and corresponding water rates. Additionally, projected import water rate increases by MWD will further add to the impact on total operating costs and corresponding water rates. The following chart details the projected MWD treated water rates for the next five years, showing an anticipated increase of 18.4% over the actual rate for 2015-2016.
Projected Average Treated Import Water Rate $1,120.00
$1,100.00
$1,080.00 $1,093
$1,060.00 $1,061 $1,040.00 Foot
- $1,020.00 $1,030
$1,000.00 $1,000 Per Acre $980.00
$960.00 $971 $940.00
$920.00
$900.00 16-17 17-18 18-19 19-20 20-21 Chart 5.3
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Skinner Reservoir, a MWD facility located five miles from the District, provides additional stored surface water within Southern California. Skinner Reservoir was completed in April 1973 with a full reservoir area of 1,140 acres. Total reservoir capacity is 44,264 acre-feet. This MWD facility is storage and a regulating reservoir for the California Water Project and for Colorado River water imported to Southern California for use in southern Riverside and San Diego Counties. All deliveries of imported water to the District emanate from Skinner Reservoir. In 2002, the District constructed a new connection to the Skinner Reservoir, which increased the District’s connected capacity by 100 cubic- feet per second. The drainage area upstream of the dam that forms Skinner Reservoir includes approximately 44 square miles. Natural surface runoff from that area is measured as it enters the reservoir and, by legal agreement, upstream surface flows are passed through the reservoir and discharged into Tucalota Creek. Flows in Tucalota Creek enter Santa Gertrudis Creek, which, in turn, is a tributary of Murrieta Creek. Flows into Tucalota Creek and Santa Gertrudis Creek help to recharge the underground aquifers, the source of groundwater for the District. Once the releases from Skinner Reservoir reach Murrieta Creek, the water is effectively lost from the area by evaporation and/or surface flows out through the Temecula Gorge. Secondary Sources of Water Secondary sources of water for the District include recycled water and conserved water. According to the District’s Master Plan, these secondary resources will contribute to the District’s supplies for the foreseeable future by reducing overall costs to the District’s water users, as well as ensuring an adequate long-term supply through build-out of the District. Recycled water produced at the Santa Rosa Water Reclamation Facility is used to irrigate large turf areas in the District such as golf courses, parks, and schools. In fiscal years 2013-2014 and 2014-2015, the District sold 4,090 acre-feet and 3,549 acre-feet of recycled water, respectively. As municipal and industrial water uses increase in the future, additional recycled water is expected to become available for specialized purposes. The District is working on increasing its use of recycled water with an end goal in excess of 9,000 acre-feet. Conservation, although not a true water source but a reduction in use through scientific and more careful application, will be largely reflected in the agricultural use sector. The District has also purchased imported water to percolate and recharge its basins and use stored water during its high-demand periods. In fiscal year 2013-2014, such recharged water supply provided more than 11,722 acre-feet, representing 15.5% of the District’s water supply. In fiscal year 2014-2015, such recharged water supply provided more than 12,254 acre-feet, representing 18.5% of the District’s water supply. Energy Costs It is estimated that the District’s fiscal year 2015-2016 energy budget, related to water operations of $6,139,398 will decrease to $5,421,153 for fiscal year 2016-2017. This equates to a decrease of $718,245 or an 11.7% decrease over prior years’ estimates. The decrease in energy costs is primarily driven by a decrease in demand, although there is a slight increase in rates from Southern California Edison. The District currently has three separate solar power facilities with a capacity of 2.6 MW. In 2016, a new 5.0 MW solar power facility will be added to District's Solar Panels
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the District’s energy portfolio. Quality of District’s Water The quality of water delivered by the District meets all current requirements of the federal Safe Drinking Water Act and regulations of the California Department of Health Services. The District purchases raw and treated MWD water stored at Skinner Reservoir through EMWD and WMWD. The District’s MWD water is delivered from the first delivery station of Skinner Reservoir. As a result, the District receives treated water with the highest strength of residual disinfectant level as compared to other delivery stations in the system downstream. The District manages the production of local groundwater for both long-term sustained yield and protection of water quality. Currently, three of the District’s 44 active production wells exceed allowable maximum contaminant levels for arsenic and/or fluoride. Both constituents commonly occur naturally in the region’s geologic formations. All three wells are operating under California Department of Public Health Services approved blending plans so that the water delivered to customers meets all current standards. Existing Water Utility Facilities The District presently uses a combination of existing groundwater wells, four imported treated turnouts from MWD, and two imported untreated turnouts from MWD, recycled water, and groundwater recharge to meet its water supply needs. Future water supply needs are expected to be provided through increased water recycling projects and groundwater recharge. Wastewater Utility Operations The District is responsible for providing collection, treatment, and disposal of wastewater in the Santa Rosa Division of the District. In 1989, the District placed in service its Santa Rosa Water Reclamation Facility ("SRWRF"). The SRWRF is a sequencing batch reactor wastewater treatment facility with secondary treatment capacity currently at 4 million gallons per day (“mgd”) and tertiary treatment capacity of 5 mgd.. The SRWRF is currently processing flows of 2.6 mgd, which is approximately 65% of its current secondary capacity. The District anticipates connections of approximately 261 equivalent dwelling units per year, which should produce an additional 41,760 gallons per day of influent per year. Currently in the design phase is the Rehabilitation project to update certain facilities employed at the SRWRF in order to improve operational efficiency and reliability. The District has established a plan of finance for such project and its design and construction is expected to be completed by 2018. As set forth in the District’s Capital Facilities Plan, the estimated cost of the expansion and updating project is projected to be approximately $25.6 million and is expected to completed and financed by the Santa Rosa Regional Resources Authority (SRRRA), described below, through a California State Revolving Loan. In 1993 the District completed construction of tertiary level treatment facilities at the SRWRF. The recycled water from the tertiary facilities is used to irrigate golf courses, green belts, parks, as well as other large landscaped areas and potentially for agricultural uses. The District has a capacity fee program for the wastewater system. Upon making application to the District for wastewater service, the District requires payment of a capacity fee per equivalent dwelling unit. In November 2015, the District along with Western Municipal Water District (Western), and Elsinore Valley Municipal Water District (Elsinore), formed the SRRRA, a joint powers authority (JPA). The SRRRA is now responsible for the governance of the SRWRF and treatment of its influent flows originating from Western, Elsinore, and the District. Furthermore, the District has been
52 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
appointed by the JPA to be the Administrator of SRRRA and the operator of the SRWRF. Per the JPA formation agreement, the SRRRA will purchase the SRWRF and is responsible to pay the District’s debt service associated with the facility until it can obtain its own debt financing to purchase the sewer plant and thereby eliminate the District’s existing debt associated the SRWRF. All operating expenses and obligations are allocated to each member agency by an agreed upon allocation where operating expenses are allocated by current flows and capital facility debt and costs are allocated by a member agency’s capacity in the plant. The District has 40% primary and secondary treatment capacity, 52% tertiary treatment capacity, and 36.6% trunk sewer line capacity for the SRWRF. It is anticipated that SRRRA will be able to obtain the financing in FY 2016-2017 for both the acquisition of the plant and the Rehabilitation project for the SRWRF. Insurance The District is a member of the Association of California Water Agencies Joint Powers Insurance Authority ("ACWA/JPIA"). Through the ACWA/JPIA, the District carries property, liability, and workers compensation insurance. The ACWA/JPIA currently services approximately 300+ member agencies. The ACWA/JPIA provides pooled insurance coverage for losses in excess of the member districts’ specified self-insured retention level. Individual claims (and aggregate public liability and property claims) in excess of specified levels are covered by excess insurance policies purchased from commercial carriers. The District continues its proactive risk management role through careful monitoring of losses, working closely with ACWA/JPIA’s claims adjuster, and designing and implementing programs to minimize risks and losses. In addition, the District analyzes worker’s compensation issues by monitoring work conditions, and organizing and implementing safety-training programs to reduce employee exposure to hazards. Permits and Licenses The District operates its water system pursuant to a Water Supply Permit issued by the State of California, Department of Health Services to supply water to its service area under Water Permit No. 04-14-96P-016. Additionally, the District owns Permit 7032 for Vail Lake, which allows the District to impound up to 40,000 acre-feet of water per year at Vail Dam and release the same to recharge Pauba Valley for recovery and use for irrigation. That permit is currently under application to the State Water Resources Control Board to allow its use anywhere in the District boundaries. The District operates its Santa Rosa Water Reclamation Facility pursuant to a discharge permit issued by the San Diego Regional Water Quality Control Board ("RWQCB"). RWQCB Order No. 94- 92 allows RCWD to reclaim up to 5.0 mgd and redistribute that water over a portion of its service area for irrigation purposes.
53 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
CONSOLIDATED OPERATING BUDGET COMPARISON Fiscal Year 2016-2017
% CHANGE BUDGET ACTUAL BUDGET BUDGET FY 2015-2016 2014-2015 2014-2015 2015-2016 2016-2017 BUDGET OPERATING REVENUE Water Revenue 34,653,140 39,122,472 38,305,431 36,191,580 -5.52% Recycled Water Revenue 957,062 1,054,896 1,178,774 1,320,828 12.05% Monthly Service Charges 16,522,341 15,478,762 18,073,859 18,911,314 4.63% Unmetered Construction Water 3,705 13,344 21,069 12,377 -41.25% Energy Charges 2,906,825 3,175,380 3,309,602 2,583,633 -21.94% Wastewater Service Charges 4,805,006 4,896,148 4,339,183 4,141,623 -4.55% Other-Recycled Local Project Crds 355,016 520,951 517,506 527,371 1.91% New Service Connections 261,440 284,112 426,383 418,282 -1.90% Rental/Lease Income 579,735 600,036 534,613 576,070 7.75% Other Op Rev-Billing 1,535,359 1,644,234 1,813,486 1,762,671 -2.80% Other Op Rev-Engineering 191,106 163,787 218,924 253,773 15.92% Western Ids/Rock Mountain 71,364 44,550 83,884 79,663 -5.03% TOTAL OPERATING REVENUE 62,842,100 66,998,672 68,822,713 66,779,186 -2.97%
OPERATING EXPENSES Source of Supply 41,694,733 46,426,010 41,469,021 39,175,898 -5.53% Booster Pumping 4,421,723 4,402,758 4,465,752 3,947,996 -11.59% T&D 9,162,426 8,709,641 9,153,824 9,305,725 1.66% Customer Service 5,054,578 4,656,511 4,709,864 4,916,833 4.39% Recycled Water 2,929,049 3,397,884 3,052,530 3,212,483 5.24% Wastewater Expense 3,897,648 3,873,292 3,450,998 3,564,891 3.30% Engineering 1,907,152 1,532,945 1,382,133 1,357,768 -1.76% Support 1,115,450 1,548,318 2,028,842 1,968,938 -2.95% TOTAL OPERATING EXPENSES 70,182,758 74,547,359 69,712,964 67,450,531 -3.25%
Gain or (Loss) From Operations (7,340,658) (7,548,687) (890,251) (671,346) Reserves – Use of (Additions To) 5,840,876 5,226,402 (251,782) (13,439) Interest Earnings General Fund 803,000 1,324,000 518,000 493,000 PERS/OPEB Amortization 696,782 998,285 696,783 196,784 Capital Expenditures General Fund 0 0 (72,750) (5,000) Net Sources of (Uses) From Op Activities 0 0 0 0
54 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Consolidated Operating Budget
Support
Engineering
Wastewater Expense
Recycled Water
Customer Service
T & D
Booster Pumping
Source of Supply
- 10 20 30 40 50 $ Millions
FY 16-17 FY15-16
55 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
The following graph and schedules identify the major sources of revenue of the 2016-2017 operating budget.
FY 2016-2017 Major Operating Revenues
1% 1%1% 0% 0% 3% 4% 6% 0%
54% 28%
2% Water Revenue Recycled Water Rev. Monthly Service Charges Unmetered Construction Water Energy Charges WW Service Charges Other-Recycled Project CRDS New Service Conn. Rental/Lease Income Other Op Rev.-Billing Other Op Revenue-Eng. Western IDS/Rock Mountain
MAJOR OPERATING REVENUE
Actual Budget Budget Percent FY 2014-15 FY 2015-16 FY 2016-17 Change Water Revenue $39,122,472 $38,305,431 $36,191,580 -5.52% Recycled Water Revenue 1,054,896 1,178,774 1,320,828 12.05% Monthly Service Charges 15,478,762 18,073,859 18,911,314 4.63% Unmetered Construction Water 13,344 21,069 12,377 -41.25% Energy Charges 3,175,380 3,309,602 2,583,633 -21.94% Wastewater Service Charges 4,896,148 4,339,183 4,141,623 -4.55% Other-Recycled Project CRDS 520,951 517,506 527,371 1.91% New Service Connections 284,112 426,383 418,282 -1.90% Rental/Lease Income 600,036 534,613 576,070 7.75% Other OP Revenue - Billing 1,644,234 1,813,486 1,762,671 -2.80% Other OP Revenue - Engineering 163,787 218,924 253,773 15.92% Western IDA/Rock Mountain 44,550 83,884 79,663 -5.03% TOTALS $66,998,672 $68,822,713 $66,779,186 -2.97%
56 Fiscal Year 2016-2017 Operating Budget
Explanation of Major Revenue Sources WATER REVENUE: Commodity water sales are the largest Water Revenue source of District revenues. The District sets rates at a level to recover the cost of delivery. There are four major types of Actual 14-15 Budget 15-16 Budget 16-17 water revenue: Agricultural, Ag-Residential, Residential and Other. 16-17 $36.19 For fiscal year 2016-2017 potable sales quantities are projected to be 53,777 acre feet or 10.2% less than prior year. Water sales 15-16 $38.31 revenue is projected to be $36,191,580. Revenue is projected to decrease by 5.52% compared to fiscal year 2015-2016 due to 14-15 $39.12 decreased demand. RECYCLED WATER REVENUE: Recycled water sales earned from recycled water supplied for approved recycled water use such as golf courses, landscapes, parks, etc. For fiscal year 2016-2017 recycled sales quantities are projected to be 3,874 acre feet or 1.7% more than prior year. Recycled water sales revenue is projected to be $1,320,828. Revenue is projected to increase by 12.05% compared to the fiscal year 2015-2016 due to an increase in the recycled rate and demand. MONTHLY SERVICE CHARGES: Revenues earned from a monthly charge (pro-rated daily) for customer services such as maintaining meters, processing bills, posting payments and repairing water mains. Daily charges are primarily based on the size of a customer’s Monthly Service Charges water meter. Charges are applied to open accounts whether water is used or not. Actual 14-15 Budget 15-16 Budget 16-17 For fiscal year 2016-2017 revenue is projected to be $18,911,314. Monthly service charge revenue is projected to 16-17 $18.91 increase by 4.63% compared to the fiscal year 2015-2016 due to increase in rates and charges and growth in number of 15-16 $18.07 accounts. UN-METERED CONSTRUCTION WATER: Revenues earned 14-15 $15.48 from a monthly charge for temporary connection to water system in lieu of the meter during construction of residence. For fiscal year 2016-2017 revenue is projected to be $12,377 Un-metered construction water revenue is projected to decrease by 41.25% compared to the fiscal year 2015-2016 due to a reduction in developer activity.
Fiscal Year 2016-2017 Operating Budget
Energy Charges ENERGY CHARGES: Revenues earned from a commodity energy charge per HCF for the cost of energy related to Actual 14-15 Budget 15-16 Budget 16-17 pumping of water to various elevation pressure zones. For fiscal year 2016-2017 revenue is projected to be 16-17 $2.58 $2,583,633. Energy revenue is projected to decrease by 21.94% compared to the fiscal year 2015-2016 primarily due to decreased demand although SCE rates increased by 5%. 15-16 $3.31 WASTEWATER SERVICE CHARGES: Revenues earned from a monthly charge, prorated daily, on a customer’s account to 14-15 $3.18 recover the costs of collection, transporting, treating and disposing of sewage. Rates are based on equivalent dwelling units (EDU’s). For fiscal year 2016-2017 revenue is projected to be $4,141,623. Wastewater service charges are projected to decrease by 4.55% compared to the fiscal year 2015-2016 due to decreased corrective maintenance expense. OTHER- RECYCLED PROJECT CREDITS: Revenues earned from recycled water credits related to recycled water sold in the District. In April 1993 the District entered into a Joint Agreement with Metropolitan Water and Eastern Municipal for an expansion project to distribute up to an additional 5,550 acre feet of recycled water per year and receive a credit of $154 per acre foot (AF) for each AF sold. For fiscal year 2016-2017 revenue is projected to be $527,371. Recycled Water Credits revenue is projected to increase by 1.91% compared to the fiscal year 2015-2016 due to increased recycled water sales. NEW SERVICE CONNECTIONS: The District charges customers for the installation of new water meters. New Service Connections For fiscal year 2016-2017 revenues are projected to be $418,282. New service connections revenue is projected to Actual 14-15 Budget 15-16 Budget 16-17 decrease by 1.90% compared to the fiscal year 2015-2016 due to a decrease in meter installation activity. 16-17 $.418 RENTAL LEASE INCOME: The District collects rent received from the lease of the old District Headquarters property and cellular facilities located on District property. For 15-16 $.426 fiscal year 2016-2017 revenues are projected to be $576,070. Rental/Lease income is projected to increase by 7.75% 14-15 $.284 compared to fiscal year 2015-2016 due to increased rents. OTHER OPERATING REVENUE-BILLING: The District collects fees for various services related to the customer water account such as: returned check charges, reduced pressure backflow prevention device (R.P.) inspection fees, delinquent charges, meter tests, R.P. Certification, meter relocations, billing service charges and miscellaneous operation revenue. For fiscal year 2016-2017 revenues are projected to be $1,762,671. Other Op Rev - Billing is projected to decrease by 2.80% compared to the fiscal year 2015-2016 due to decreased grant revenue. Fiscal Year 2016-2017 Operating Budget
OTHER OPERATING REVENUE-ENGINEERING: The District collects engineering fees for various services performed such as: will serve letters, blueprint sales, sewer inspections, water inspections and plan checking. For fiscal year 2016-2017 revenues are projected to be $253,773. Other Op Rev - Engineering is projected to increase by 15.92% compared to the fiscal year 2015-2016 due to increased developer activity.
Rancho California Water District Fiscal Year 2016-2017 Operating Budget
The following graph and schedules identify the major operating expenses of the 2016-2017 operating budget.
FY 2016-2017 Major Operating Expense
2% 3% 5% 5%
7%
14% 58%
6%
Source of Supply Booster Pumping T&D Customer Service Recycled Water WW Expense Engineering Support
MAJOR OPERATING EXPENSES
Actual Budget Budget Percent FY 2014-15 FY 2015-16 FY 2016-17 Change Source of Supply 46,426,010 $41,469,021 $39,175,898 -5.53% Booster Pumping 4,402,758 4,465,752 3,947,996 -11.59% Transmission and Distribution 8,709,641 9,153,824 9,305,725 1.66% Customer Service 4,656,511 4,709,864 4,916,833 4.39% Recycled Water 3,397,884 3,052,530 3,212,483 5.24% Wastewater Expense 3,873,292 3,450,998 3,564,891 3.30% Engineering 1,532,945 1,382,133 1,357,768 -1.76% Support 1,548,318 2,028,842 1,968,938 -2.95% TOTALS $74,547,359 $69,712,964 $67,450,531 -3.25%
60 Fiscal Year 2016-2017 Operating Budget
Explanation of Major Operating Expenses SOURCE OF SUPPLY: Source of Supply expense is the acquisition cost of water for resale to customers. Source of Supply The District has several water resources available, including treated and untreated import water, re- Actual 14-15 Budget 15-16 Budget 16-17 cycled water and natural local sources. Import water is purchased from Metropolitan Water District (MWD) through two of its member 16-17 $39.18 agencies, Eastern Municipal Water District (EMWD) and Western Municipal Water District 15-16 $41.47 (WMWD) and distributed through connections at EM13, EM20, WR26 and WR28. The natural local groundwater is produced through the District’s 14-15 $46.43 potable water wells. The District purchases untreated water from EMWD through the EM19 connection to recharge the groundwater basin. This operating function includes the cost of labor, overheads, materials, outside services, permits, water quality regulations and utilities used and incurred in the general supervision and operation of water source of supply activities. The District’s water source comes from the groundwater basin and through imported water from MWD. The District has a system of wells and pump stations to extract the water from the ground. Source of supply activities include preventive and corrective maintenance on all well facilities, recharge ponds, and water connections. For fiscal year 2016-2017 expenses are projected to be $39,175,898. Cost of import water is projected to decrease by 5.8% compared to fiscal year 2015-2016. The 5.53% decrease in total source of supply is directly related to the decrease in demand. BOOSTER PUMPING: Booster pumping is the activity that transfers water from lower to higher elevation pressure zones through pump stations that lift the water for customer usage. This operating function includes the cost of labor, overheads, materials, outside services, and utilities used and incurred in the general supervision and operation of pumping activities. The cost of energy is 63.27% or $2,498,084 of the total cost of this activity. Booster pumping activities include preventive and corrective maintenance on all pump stations, generators, and other equipment used in the pumping of water. For fiscal year 2016-2017 expenses are projected to be $3,947,996. Booster expense is projected to decrease by 11.59% compared to fiscal year 2015-2016 due to the decrease in demand offset by a slight increase in energy rates from Southern California Edison. TRANSMISSION AND DISTRIBUTION: Transmission and distribution is the water system conveyance facilities that transport water from source of supply facilities to water users. These facilities consist of fire hydrants, air-vacs, valves, reservoirs, and large diameter pipelines that transport water into and out of reservoirs. Reservoirs are designed to meet water requirements at peak demand and equalize the system.
This operating function includes of the cost of labor, overheads, materials and outside services used and incurred in the general supervision and operation of transmission and distribution facilities. Transmission and distribution activities include preventive and
61 Fiscal Year 2016-2017 Operating Budget
corrective maintenance on all reservoirs, mainlines, air-vacs, fire hydrants, valves and meter installations. For fiscal year 2016-2017 expense is projected to be $9,305,725. Transmission and distribution expense is projected to increase by 1.66% compared to fiscal year 2015-2016 due to increased preventive maintenance activities and increased sampling requirements. CUSTOMER SERVICE: Customer service is the activity involved in reading and maintaining Customer Service water meters. It is important that meters be properly installed, maintained, and read to Actual 14-15 Budget 15-16 Budget 16-17 obtain necessary revenue for the water system. 16-17 $4.92 This operating function includes the cost of labor, overheads, materials and outside services used and incurred in the general 15-16 $4.71 supervision and operation of customer meters and associated equipment. Activities include 14-15 $4.66 preventive maintenance of customer meters and meter reading. For fiscal year 2016-2017 expense is projected to be $4,916,833. Customer service expense is projected to increase by 4.39% compared to the fiscal year 2015-2016 due to the increased drought response and implementation of the Water Shortage Contingency Plan. RECYCLED WATER: Recycled water is wastewater treated beyond the secondary to tertiary treatment (Title 22) level. This process consists of a chemically assisted filtration system that de-chlorinates the water to be used for landscape Recycled Water irrigation, golf courses, and some agriculture use. Actual 14-15 Budget 15-16 Budget 16-17 The recycled water system includes reservoirs, pipelines, pump stations and holding ponds. This operating function includes of the cost of 16-17 $3.21 labor, overheads, materials, utilities and outside services used and incurred in the general 15-16 $3.05 supervision and operation of recycled water facilities and associated equipment. Activities include preventive and corrective maintenance 14-15 $3.40 of all recycled waterlines, reservoirs, pump stations and holding ponds. For fiscal year 2016-2017 expense is projected to be $3,212,483. Recycled Water expense is projected to increase by 5.24% compared to fiscal year 2015-2016 due to increased corrective maintenance activities. WASTEWATER EXPENSE: Wastewater treatment is the process whereby raw sewage is collected and lifted to the treatment plant for processing. There are two processes the sewage goes through, the primary and the secondary. The primary process is the physical settling of waste. The secondary process is transferred to the biological treatment whereby particles are consumed by biological activity. After secondary treatment the wastewater is transferred to the recycled water function for further processing.
62 Fiscal Year 2016-2017 Operating Budget
This operating function includes of the cost of labor, overheads, materials, outside services, bio-solid removal and utilities used and incurred in the general supervision and operation of wastewater treatment activities. Wastewater activities include preventive and corrective maintenance on all treatment plant structures and improvements. For fiscal year 2016-2017 expense is projected to be $3,564,891 . Wastewater expense is projected to increase by 3.30% compared to fiscal year 2015-2016 due to increased energy expense and non-annual scheduled maintenance. ENGINEERING: The primary function of Engineering is the planning, design, and construction management of District capital facilities both new and replacement. Engineering also includes overseeing developer activities to ensure that capital facilities meet District standards. This operating function includes of the cost of labor, overheads, materials and outside services used and incurred in connection with the engineering functions that are not chargeable directly to capital activity. Activities include cost estimates, general customer inquiries, mapping updates and general project planning. For fiscal year 2016-2017 expense is projected to be $1,357,768. Engineering expense is Engineering projected to decrease by 1.76% compared to fiscal year 2015-2016 due to a reallocation of Actual 14-15 Budget 15-16 Budget 16-17 man-hours.
SUPPORT: Support consists of the functions that 16-17 $1.36 support the District activities. These functions include grant management, information 15-16 $1.38 technology (IT), accounting, board administration, public relations, human resources, records-management, warehouse 14-15 $1.53 operations, purchasing, office building maintenance, legal expenses, insurance and utilities. The costs become overhead that is allocated to operating and capital functions. The overhead rate is determined during the annual budget process. This operating function includes the cost of labor, overheads, materials, utilities and outside services used and incurred in connection with the general administration of the District’s operations that are not chargeable directly to a particular operating function. Activities include preventive and corrective maintenance of all District office buildings, office equipment, and furnishings. For fiscal year 2016-2017 expense is projected to be $1,968,938. Support expense is projected to decrease by 2.95% compared to fiscal year 2015-2016 due to a shift of labor expense for the implementation of an Asset Management Program. EMPLOYEE BENEFITS: This operating function includes of the cost of employees’ sick- vacation-holiday benefit, medical-dental-vision insurance, group term life insurance, FICA, long term disability insurance and PERS retirement benefits. These costs become overhead that is allocated to operating and capital functions. The overhead rate is determined with the annual budget process.
63 Fiscal Year 2016-2017 Operating Budget
For fiscal year 2016-2017 expense is projected to be $8,242,274. Employee benefit expense is projected to decrease by 2.02% compared to fiscal year 2015-2016 due to the reduction of 3 FTE’s and implementation of GASB 68 on pension expense recognition. VEHICLE & EQUIPMENT: This operating function includes the cost of labor, overheads, materials and outside services used and incurred in connection with the preventive and corrective maintenance of all District vehicles and equipment. These costs become overhead that is allocated to operating and capital functions. The overhead rate is determined during the annual budget process. For fiscal year 2016-2017 expense is projected to be $680,976. Vehicle & equipment is projected to decrease by 2.14% compared to fiscal year 2015-2016 due to decreased preventive maintenance costs.
64 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Rancho Division
2014-2015 2015-2016 2015-2016 2016-2017 ACTUAL PROJECTED BUDGET BUDGET OPERATING REVENUES Water Revenue $17,676,783 $17,706,4585 $19,836,295 $18,395,646 SEE NOTE - 2 Recycled Water Revenue 637,185 901,323 800,826 928,553 Monthly Service Charge 10,540,357 11,240,062 11,378,780 11,875,133 SEE NOTE - 2 Unmetered Construction Water 3,705 5,000 21,069 12,377 Energy Charges 1,344,536 1,204,915 1,575,833 1,204,673 SEE NOTE - 2 Other-Recycled Project Crds 251,667 227,119 375,560 391,913 New Service Connections 127,261 198,062 280,944 295,428 SEE NOTE - 3 Rental/Lease Income 431,665 448,082 386,140 424,047 Other Op Rev-Billing 1,102,975 1,120,966 1,285,646 1,248,523 Other Op Rev-Eng. 151,190 266,854 135,359 164,615 TOTAL OPERATING REVENUES $32,267,321 $33,318,841 $36,076,452 $34,940,908 OPERATING EXPENSES SOURCE OF SUPPLY Operating Purchased Water Resource 20,751,309 13,057,716 20,663,508 18,635,884 Purchased Water Santa Marg 1,097,378 1,204,320 1,222,215 1,320,739 TOTAL SOURCE OF SUPPLY $21,848,687 $14,262,036 $21,885,723 $19,956,622
BOOSTER PUMPING OPERATING Labor 106,822 122,786 87,668 143,889 G&A/Fringe Benefit 240,134 284,498 203,127 334,974 Materials & Supplies 28,894 11,868 17,000 18,600 Utilities 1,297,690 1,103,873 1,504,847 1,149,728 Outside Services 64,379 77,010 63,000 57,100 Vehicle & Equipment 10,367 12,524 8,942 14,677 Total Operating $1,748,286 $1,612,559 $1,884,585 $1,718,967 CORRECTIVE MAINTENANCE Corrective Maintenance-Labor 17,485 14,322 7,530 19,012 Corrective Maintenance-G&A/FB 39,306 33,184 18,216 46,199 Corrective Maintenance 154,476 56,704 75,500 57,000 Total Corrective 211,267 104,210 101,247 122,211 TOTAL BOOSTER PUMPING $1,959,553 $1,716,769 $1,985,831 $1,841,178 TRANSMISSION & DISTRIBUTION OPERATING Labor 1,220,912 1,184,890 1,233,136 1,281,009 G&A/Fringe Benefit 2,540,363 2,545,856 2,667,942 2,779,849 Materials & Supplies 115,014 162,934 145,797 126,997 Outside Services 315,199 363,044 201,430 246,860 Vehicle & Equipment 109,839 112,074 117,449 121,798 Service Connections-Labor 17,005 30,610 37,895 44,440 Service Connections-G&A/FB 36,514 70,354 91,669 107,988 Service Connection Expense 84,432 97,098 151,000 143,000 Total Operating $4,439,278 $4,566,860 $4,646,318 $4,851,941
CORRECTIVE MAINTENANCE Corrective Maintenance-Labor 167,809 142,172 143,317 159,721 Corrective Maintenance-G&A/FB 377,234 329,414 346,685 388,122 Corrective Maintenance 653,959 636,088 477,000 546,600 Total Corrective 1,199,002 1,107,674 967,002 1,094,442 TOTAL TRANSMISSION & DISTRIBUTION $5,638,280 $5,674,534 $5,613,321 $5,946,384
65 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Rancho Division
2014-2015 2015-2016 2015-2016 2016-2017 ACTUAL PROJECTED BUDGET BUDGET CUSTOMER SERVICE OPERATING Labor $619,922 $644,736 $574,310 $573,329 G&A/Fringe Benefit 1,360,020 1,447,938 1,292,577 1,299,814 Materials & Supplies 162,866 153,258 122,400 139,000 Outside Services 74,188 17,924 51,000 42,750 Vehicle & Equipment 60,279 65,764 58,580 58,480 Resource Customer Support 1,329,476 2,016,654 1,275,323 1,423,098 Uncollectible Accounts 27,529 172,018 71,000 81,000 Total Operating 3,634,280 4,518,292 3,445,190 3,617,470 TOTAL CUSTOMER SERVICE $3,634,280 $4,518,292 $3,445,190 $3,617,470
RECYCLED WATER OPERATING Joint Facility Recycled Water 1,368,631 1,449,590 1,455,936 1,581,002 Labor 66,423 45,718 61,206 61,296 G&A/Fringe Benefit 149,320 105,928 141,815 142,697 Materials & Supplies 14,877 250,096 19,274 15,750 Utilities 181,108 186,500 205,919 198,038 Outside Services 26,170 20,020 20,950 16,050 Vehicle & Equipment 6,461 4,664 6,243 6,253 Total Operating $1,812,990 $2,062,516 $1,911,344 $2,021,086
CORRECTIVE MAINTENANCE Corrective Maintenance-Labor 17,870 7,698 13,710 22,369 Corrective Maintenance-G&A/FB 40,172 17,838 33,164 54,356 Corrective Maintenance 108,493 13,880 16,000 39,500 Total Corrective 166,535 39,416 62,874 116,225 TOTAL RECYCLED WATER $1,979,525 $2,101,932 $1,974,217 $2,137,311
ENGINEERING OPERATING Labor 44,642 67,950 49,473 48,134 G&A/Fringe Benefit 90,467 139,042 101,568 101,322 Outside Services 8,505 4,726 20,000 20,000 Vehicle & Equipment 4,408 6,808 5,046 4,910 Engineering OH-Cap Fee for Service 21,743 60,136 43,784 50,733 SEE NOTE - 5 Resource Engineering 907,669 819,914 574,161 570,465 SEE NOTE - 5 Total Operating 1,077,433 1,098,576 794,032 795,564 TOTAL ENGINEERING $1,077,433 $1,098,576 $794,032 $795,564
SUPPORT OPERATING Direct Support Allocation 814,294 914,169 1,142,754 1,167,496 Resource Support (207,907) 0 0 0 Total Operating 606,387 914,169 1,142,754 1,167,496 TOTAL SUPPORT $606,387 $914,169 $1,142,754 $1,167,496
TOTAL OPERATING EXPENSES 36,744,146 30,286,307 36,841,068 35,462,025 GAIN OR (LOSS) FROM OPERATIONS (4,476,825) 3,032,534 (764,616) (521,117) RESERVES 3,429,209 (3,797,150) 0 0 INTEREST EARNINGS GENERAL FUND 643,000 360,000 360,000 400,000 PERS CONTRIBUTION AMORTIZATION 404,616 404,616 404,616 121,117 NET SOURCES OR (USES) FROM OP ACTIVITIES $0 $0 $0 $0
66 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Santa Rosa Division
2014-2015 2015-2016 2015-2016 2016-2017 ACTUAL PROJECTED BUDGET BUDGET OPERATING REVENUES Water Revenue $16,976,358 $15,656,401 $18,469,136 $17,795,934 SEE NOTE - 2 Recycled Water Revenue 319,876 333,020 377,947 392,275 Monthly Service Charges 5,981,984 6,460,069 6,695,079 7,036,181 SEE NOTE - 2 Energy Charges 1,562,289 1,361,504 1,733,769 1,378,960 SEE NOTE - 2 Other- Recycled Project Crds 103,349 72,688 141,946 135,458 New Service Connections 134,179 127,068 145,439 122,854 SEE NOTE - 3 Rental/Lease Income 148,071 138,791 148,472 152,023 Other Op Rev-Billing 432,390 424,322 527,841 514,148 Other Op Rev-Eng. 37,719 47,553 83,565 89,159 Western IDA-Rock Mtn 71,364 78,912 83,884 79,663 TOTAL OPERATING REVENUES $25,767,579 $24,700,328 $28,407,078 $27,696,655 OPERATING EXPENSES SOURCE OF SUPPLY Operating Purchased Water Resource 18,748,668 16,831,980 18,361,083 17,898,537 SEE NOTE - 4 Purchased Water Santa Marg 1,097,378 1,204,320 1,222,215 1,320,739 TOTAL SOURCE OF SUPPLY $19,846,046 $18,036,300 $19,583,298 $19,219,275 BOOSTER PUMPING OPERATING Labor 96,378 133,320 94,621 85,272 G&A/Fringe Benefit 216,657 308,904 219,236 198,513 Materials & Supplies 99,745 27,912 78,400 77,900 Utilities 1,518,361 1,436,547 1,721,742 1,348,356 Outside Services 290,488 376,802 223,400 241,000 Vehicle & Equipment 9,358 13,598 9,651 8,698 Total Operating $2,230,987 $2,297,083 $2,347,050 $1,959,739 CORRECTIVE MAINTENANCE Corrective Maintenance-Labor 21,556 22,538 12,539 12,530 Corrective Maintenance-G&A/FB 48,457 52,222 30,332 30,449 Corrective Maintenance 161,171 160,066 90,000 104,100 Total Corrective 231,184 234,826 132,870 147,079 TOTAL BOOSTER PUMPING $2,462,171 $2,531,909 $2,479,921 $2,106,818 TRANSMISSION & DISTRIBUTION OPERATING Labor 677,810 727,796 683,292 662,826 G&A/Fringe Benefit 1,411,457 1,562,742 1,474,801 1,417,695 Materials & Supplies 92,947 83,786 126,008 155,919 Outside Services 170,720 208,048 183,128 322,177 Vehicle & Equipment 61,070 68,796 64,924 62,116 Service Connections-Labor 19,432 18,672 22,438 22,552 Service Connections-G&A/FB 42,761 42,618 54,277 54,801 Service Connection Expense 72,961 65,778 68,500 45,500 Total Operating $2,549,158 $2,778,236 $2,677,368 $2,743,586 CORRECTIVE MAINTENANCE Corrective Maintenance-Labor 162,823 123,012 144,219 132,290 Corrective Maintenance-G&A/FB 366,026 285,022 348,867 321,465 Corrective Maintenance 446,139 296,542 370,050 162,000 Total Corrective 974,988 704,576 863,136 615,756 TOTAL TRANSMISSION & $3,524,146 $3,482,812 $3,540,504 $3,359,341 DISTRIBUTION
67 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Santa Rosa Division
2014-2015 2015-2016 2015-2016 2016-2017 ACTUAL PROJECTED BUDGET BUDGET CUSTOMER SERVICE OPERATING Labor $255,822 $250,638 $207,727 $205,786 G&A/Fringe Benefit 567,040 567,046 473,678 472,122 Materials & Supplies 46,123 32,436 39,550 38,350 Outside Services 51,315 7,382 38,800 42,550 Vehicle & Equipment 24,860 25,564 21,188 20,990 Resource Customer Support 304,580 461,321 291,525 326,338 Uncollectible Accounts 5,777 93,852 12,000 13,000 Total Operating 1,255,514 1,438,239 1,084,468 1,119,137 TOTAL CUSTOMER SERVICE $1,255,514 $1,438,239 $1,084,468 $1,119,137 RECYCLED WATER OPERATING Joint Facility Recycled Water 571,481 621,253 623,973 677,572 Labor 53,997 32,626 63,822 51,992 G&A/Fringe Benefit 121,386 75,594 147,875 121,038 Materials & Supplies 7,181 10,020 20,774 12,700 Utilities 139,197 147,036 150,332 134,692 Outside Services 24,104 17,192 23,600 17,150 Vehicle & Equipment 5,243 3,328 6,510 5,303 Total Operating $922,589 $907,049 $1,036,885 $1,020,448 CORRECTIVE MAINTENANCE Corrective Maintenance-Labor 4,218 6,934 9,616 13,681 Corrective Maintenance-G&A/FB 9,483 16,068 23,261 33,244 Corrective Maintenance 13,234 46,358 8,550 7,800 Total Corrective 26,935 69,360 41,427 54,725 TOTAL RECYCLED WATER $949,524 $976,409 $1,078,312 $1,075,173 ENGINEERING OPERATING Labor 10,868 12,886 35,004 28,944 G&A/Fringe Benefit 22,114 26,208 71,863 60,927 Outside Services 344 1,080 10,000 5,000 Vehicle & Equipment 1,070 322 3,570 2,952 Engineering OH-Cap Fee for Service 4,258 11,404 30,978 30,507 SEE NOTE - 5 Resource Engineering 500,563 290,867 203,686 202,374 SEE NOTE - 5 Total Operating 539,216 342,767 355,100 330,704 TOTAL ENGINEERING $539,216 $342,767 $355,100 $330,704 SUPPORT OPERATING Direct Support Allocation 460,278 547,103 634,642 600,875 Resource Support (133,507) 0 0 0 Total Operating 326,771 547,103 634,642 600,875 TOTAL SUPPORT $326,771 $547,103 $634,642 $600,875
TOTAL OPERATING EXPENSES 28,903,387 27,355,539 28,756,246 27,811,323 GAIN OR (LOSS) FROM OPERATIONS (3,135,808) (2,655,210) (349,168) (114,668) RESERVES 2,785,641 2,306,043 0 0 INTEREST EARNINGS GENERAL FUND 108,000 107,000 107,000 39,000 PERS CONTRIBUTION AMORTIZATION 242,167 242,167 242,168 75,668 NET SOURCES OR (USES) FROM OP ACTIVITIES $0 $0 $0 $0
68 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Resource Division
2014-2015 2015-2016 2015-2016 2016-2017
ACTUAL PROJECTED BUDGET BUDGET OPERATING REVENUES TOTAL OPERATING REVENUES $0 $0 $0 $0 OPERATING EXPENSES SOURCE OF SUPPLY Operating Purchased Water MWD $24,067,604 $16,119,444 $23,462,782 $18,746,713 Import Water Fixed Charge 1,509,892 3,474,207 2,920,398 3,491,826 Purchased Water Premium 543,448 51,077 150,000 0 Purchased Recharge Water 9,393,691 6,510,668 8,735,552 10,638,611 Purchased Water Resource (39,499,977) (29,889,696) (39,024,591) (36,534,420) SEE NOTE - 4 Purchased Water Santa Marg (2,194,756) (2,408,640) (2,444,430) (2,641,477) Labor 527,342 632,522.00 516,102 593,023 G&A/Fringe Benefit 1,185,462 1,465,556.00 1,195,807 1,380,558 Materials & Supplies 165,156 251,614.00 296,071 213,374 Utilities 2,948,617 2,884,260 2,912,809 2,923,069 Outside Services 994,435 482,416.00 845,916 874,628 Vehicle & Equipment 51,232 64,516.00 52,642 60,488 Total Operating (307,855) (362,057) (380,943) (253,607) Corrective Maintenance Corrective Maintenance-Labor 40,100 16,020 33,443 4,987 Corrective Maintenance-G&A/FB 90,145 37,118 80,900 12,119 Corrective Maintenance 177,610 308,919 266,600 236,500 Total Corrective 307,855 362,057 380,943 253,607 TOTAL SOURCE OF SUPPLY $0 $0 $0 $0 CUSTOMER SERVICE OPERATING Labor 434,296 571,068 428,860 463,880 G&A/Fringe Benefit 883,360 1,172,402 880,450 976,467 Materials & Supplies 32,953 23,084 26,000 29,000 Outside Services 406,013 939,252 368,000 413,000 Vehicle & Equipment 42,219 58,248 43,744 47,316 Resource Customer Support (1,798,841) (2,764,054) (1,747,053) (1,929,662) TOTAL CUSTOMER SERVICE $0 $0 $0 $0 RECYCLED WATER OPERATING Joint Facility Recycled Water (1,940,112) (2,070,843) (2,079,909) (2,258,575) Purchased Recycled Water 491,553 407,421 424,927 539,652 Labor 306,562 337,626 306,072 266,810 G&A/Fringe Benefit 689,151 782,282 709,170 621,134 Materials & Supplies 30,923 20,698 40,320 47,950 Utilities 123,119 153,174 110,000 125,000 Outside Services 219,565 233,322 278,225 367,050 Vehicle & Equipment 29,823 34,438 31,219 27,215 Total Operating $(49,416) $(101,882) $(179,975) $(263,765) Corrective Maintenance Corrective Maintenance-Labor 974 550 9,499 4,596 Corrective Maintenance-G&A/FB 2,190 1,276 22,977 11,169 Corrective Maintenance 46,252 100,056 147,500 248,000 Total Corrective 49,416 101,882 179,975 263,765 TOTAL RECYCLED WATER $0 $0 $0 $0
69 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Resource Division
2014-2015 2015-2016 2015-2016 2016-2017
ACTUAL PROJECTED BUDGET BUDGET ENGINEERING OPERATING Labor 743,092 720,374 603,925 587,536 G&A/Fringe Benefit 1,511,458 1,478,922 1,239,859 1,236,763 Materials & Supplies 32,935 26,162 35,000 39,000 Outside Services 36,116 20,462 48,700 33,000 Vehicle & Equipment 72,315 73,480 61,600 59,929 Engineering OH-Cap Fee for Service (697,182) (875,890) (978,237) (951,887) SEE NOTE - 5 Resource Engineering (1,698,735) (1,443,510) (1,010,847) (1,004,340) SEE NOTE - 5 Total Operating 0 0 0 0 TOTAL ENGINEERING $0 $0 $0 $0 SUPPORT OPERATING Labor 4,834,977 4,299,136 4,567,615 4,380,483 G&A/Fringe Benefit 3,308,935 3,044,950 3,329,791 3,224,035 Materials & Supplies 409,697 358,388 373,240 339,236 Utilities 16,584 27,782 25,805 27,617 Outside Services 3,763,086 4,098,744 3,922,210 4,061,162 Corrective Maintenance 56,869 101,294 32,082 118,967 Direct Support Allocation (1,467,061) (1,723,734) (2,028,842) (1,968,937) Resource Support (10,923,087) (10,206,560) (10,221,902) (10,182,563) SEE NOTE - 5 Total Operating 0 0 0 0 TOTAL SUPPORT $0 $0 $0 $0 EMPLOYEE BENEFIT Employee Benefits 5,596,714 5,618,030 6,285,499 6,164,192 E/B Vacation/Sick/Holiday 1,975,985 1,960,302 2,126,871 2,078,082 Reimbursement Employee Benefit (7,572,699) (7,578,332) (8,412,370) (8,242,274) TOTAL EMPLOYEE BENEFIT $0 $0 $0 $0 VEHICLE & EQUIPMENT OPERATING Vehicle & Equipment PM-Labor 36,753 35,975 75,786 43,029 Vehicle & Equipment PM-G&A/FB 25,838 26,226 55,248 31,669 Vehicle & Equipment Exp. PM 304,236 271,185 381,250 319,000 Total Operating $366,827 $333,387 $512,284 $393,699 CORRECTIVE MAINTENANCE Vehicle & Equipment CM-Labor 73,806 83,185 27,249 66,692 Vehicle & Equipment CM-G&A/FB 51,886 60,642 19,864 49,085 Vehicle & Equipment Exp. CM 169,222 144,414 136,500 171,500 Total Corrective $294,914 $288,241 $183,613 $287,278 Reimburse Vehicle Expense (661,741) (621,628) (695,897) (680,976) SEE NOTE - 5 TOTAL VEHICLE & EQUIP EXP $0 $0 $0 $0
TOTAL OPERATING EXPENSES 0 0 0 0 GAIN OR (LOSS) FROM OPERATIONS 0 0 0 0 RESERVES 0 0 0 0 INTEREST EARNINGS GENERAL FUND 0 0 0 0 PERS CONTRIBUTION AMORTIZATION 0 0 0 0 CAPITAL EXPENDITURES GENERAL FUND 0 0 0 0 NET SOURCES OR (USES) FROM OP ACTIVITIES $0 $0 $0 $0
70 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Wastewater Division
2014-2015 2015-2016 2015-2016 2016-2017
ACTUAL PROJECTED BUDGET BUDGET OPERATING REVENUES Wastewater Service Charges $4,805,006 $4,032,185 $4,339,183 $4,141,623 Other Op Rev-Billing (5) 0 0 0 Other Op Rev-Eng. 2,197 4,148 0 0 TOTAL OPERATING REVENUES $4,807,198 $4,036,333 $4,339,183 $4,141,623
CUSTOMER SERVICE OPERATING Resource Customer Support 164,785 286,080 180,206 180,227 Total Operating 164,785 286,080 180,206 180,227 TOTAL CUSTOMER SERVICE $164,785 $286,080 $180,206 $180,227 WASTEWATER EXPENSE Operating Labor 628,239 608,572 574,407 512,861 G&A/Fringe Benefit 1,345,077 1,351,460 1,238,449 1,101,019 Materials & Supplies 93,204 69,282 72,900 87,000 Utilities 749,252 651,002 631,500 716,500 Outside Services 688,745 540,768 603,450 834,550 Vehicle & Equipment 58,294 59,582 54,693 48,370 Uncollectible Accounts 1,856 15,000 10,000 12,000 Total Operating $3,564,667 $3,295,666 $3,185,400 $3,312,300
Corrective Maintenance Corrective Maintenance-Labor 27,795 13,658 19,479 23,729 Corrective Maintenance-G&A/FB 62,484 31,644 47,120 57,662 Corrective Maintenance 242,702 194,724 199,000 171,200 Total Corrective 332,981 240,026 265,599 252,591 TOTAL WASTEWATER EXPENSE $3,897,648 $3,535,692 $3,450,998 $3,564,891 ENGINEERING OPERATING Resource Engineering 290,503 332,729 233,000 231,500 Total Operating 290,503 332,729 233,000 231,500 TOTAL ENGINEERING $290,503 $332,729 $233,000 $231,500
SUPPORT OPERATING Direct Support Allocation 192,489 262,463 251,446 200,566 Resource Support (10,197) 0 0 0 Total Operating 182,292 262,463 251,446 200,566 TOTAL SUPPORT $182,292 $262,463 $251,446 $200,566 TOTAL OPERATING EXPENSES $4,535,228 $4,416,963 $4,115,651 $4,177,184
GAIN OR (LOSS) FROM OPERATIONS 271,970 (380,630) 223,532 (35,561) RESERVES (373,970) 352,380 (251,782) (13,439) INTEREST EARNINGS GENERAL FUND 52,000 51,000 51,000 54,000 PERS CONTRIBUTION AMORTIZATION 50,000 50,000 50,000 0 CAPITAL EXPENDITURES GENERAL FUND 0 (72,750) (72,750) (5,000)
NET SOURCES OR (USES) FROM OP ACTIVITIES $0 $0 $0 $0
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72 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
FOOTNOTES
FOOTNOTE #1 – SUMMARY OF SIGNIFICANT BUDGETING POLICIES Enterprise Fund - The District utilizes accounting principles appropriate for an enterprise fund; accordingly, the revenues and expenses are budgeted on an accrual basis.
FOOTNOTE #2 – USER RATES Total water demand for the fiscal year 2016-2017 budget is projected to decrease by 6,032-acre feet or 9.5%. Factors that contribute to this include a sharp decrease in water demand in response to drought conservation efforts and the water shortage contingency plan implementation. The District’s 2016-2017 operating budget decreased by $2,262,433 or 3.3% over the 2015-2016 budget. The single greatest operating expense of RCWD is the source of supply cost of water. Consequently, the mix of water production sources can have a significant impact on costs and water rates from year to year. In the 2016-2017 fiscal budget, treated import water requirements are estimated to decrease by 5,669 acre-feet or 22.7%. This will result in a decrease of $5,325,320 related to the decrease in treated import quantity requirements. The 2015-2016 operating budget of $69.7 million decreased by $5.3 million from import water purchases results in an adjusted budget of $64.4 million. The adjusted budget of $64.4 million increased by $0.5 million directly related to an increase in MWD’s import water rate, an increase of $0.7 directly related to an increase in untreated import water rate, an increase of $1.2 from increased untreated water quantity, an increase of $0.5 in import water fixed charge cost and all other costs increased $0.3 resulting in the 2016-2017 operating budget of $67.5 million. Prior year 2015-2016 Budget $69,713 Treated Import Quantity Required And Supply Mix -$5,325 2015-2016 Budget Adjusted for Increased Demand And Supply Mix $64,388 Increase in Treated Import Water Price $459 Increase in Untreated Import Water Price $715 Increase in Untreated Import Water Quantity $1,189 Increase in Import Water Fixed Charge Cost $571 Additional Cost From All Other Categories $129 Proposed 2016-2017 Budget $67,451
Additionally, the District anticipates a decrease of 360 AF or 0.9% in the amount of production over the prior year from its lowest cost supply, native well water. Furthermore, the District will have an increase in import recharge water of 2,000 AF or 18.7% over the prior year which cost less than treated import water. The net decrease in source of supply expense is $2,293,124 or 5.5% over the prior year. The total source of supply water expense, accounts for 57.9% of the total operating budget.
73 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Rancho Division - The current year’s 2016-2017 total budgeted operating costs are projected to decrease in the Rancho Division by $1,379,043 or 3.7%. This decrease in total costs is primarily being driven by decreased source of supply costs by $1,929,100. Also due to the decrease in water demand, booster pumping costs are decreasing by $144,653 or 7.3% due primarily to lower energy needs from reduced pumping levels. This Division did experience other cost increases related to increased transmission and distribution maintenance, increased customer service, increased recycled water costs, and minor increases in engineering and direct support, all of which amounted to approximately $694,710. As a result, the Rancho Division’s combined M&I average commodity and energy rate will decrease on a weighted average basis by 0.1% and combined Ag commodity and energy rates will decrease on a weighted average basis by 0.1%. The monthly impact to the average residential bill in the Rancho Division is $1.04 or 1.91%, which includes the 5.0% rate increase on the fixed meter charges. Likewise, the impact to the average combined agricultural water and energy rate in the Rancho Division will decrease by $5.37 per acre- foot. Santa Rosa Division – The current year’s 2016-2017 total budgeted operating costs are projected to decrease in the Santa Rosa Division by $944,923 or 3.3%. This decrease in total costs is primarily being driven by decreased source of supply costs of $364,023 stemming from the lower overall demand. However, costs are decreasing significantly slower (2.6%) than sales (9.5%) due to the increased imported water costs in the supply mix as described above. Also due to the decrease in water demand, booster pumping costs are decreasing by $373,103 or 15.0% due primarily to lower energy needs from reduced pumping levels. In an effort to mitigate rate increases caused by import water rate pressure in the Santa Rosa Division, non-critical maintenance and other activities were reevaluated and reprioritized with the less critical being deferred. This resulted in cost decreases related to transmission and distribution costs for potable and recycled water, as well as engineering and direct support costs, all of which amounted to approximately $242,466. A small increase in customer service costs of $34,669 is due to additional customer efforts relating to ongoing drought efforts. As a result, the Santa Rosa Division’s combined M&I average commodity and energy rate will increase on a weighted average basis by 3.9% and combined Ag commodity and energy rates will increase on a weighted average basis by 3.9%. The monthly impact to the average residential bill in the Santa Rosa Division is $3.49 or 4.3%, which includes the 7.0% rate increase on the fixed meter charges. Likewise, the impact to the average combined agricultural water and energy rate in the Santa Rosa Division will increase by $31.26 per acre-foot. Budget-Based Tiered Water Rate Structure – RCWD’s Budget-Based Tiered Water Rate Structure was implemented in July 2010. This structure applies to residential, multi-family, and dedicated landscape accounts. The key principle underlying budget based water rates is that each customer gets a water use budget that is appropriate to their property and circumstances if water is used efficiently. The rate structure acknowledges that water is a finite resource and needs to be used efficiently in order to ensure a continued reliable supply today and in the future. The water rates recover the actual cost of water operations and do so in a manner that rewards efficient use of water. The use of tiered price levels allows the District to recover the higher costs of additional water supplies from customers that are using water in excess of efficient levels. Absent this structure, all customers would be underwriting inefficient water use and those customers who are less efficient would not have a strong
74 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
incentive to become more efficient in their water use. The District does not expect a change in rate structure for residential, multi-family, and dedicated landscape accounts to materially affect revenues. BUDGET-BASED TIERED WATER RATES (PER A/F) Division Tier 1 Tier II Tier III Tier IV Rancho $0.67 $1.51 $2.57 $6.50 Santa Rosa $1.09 $2.00 $2.55 $6.50
After five years under the current rate structure, a thorough review of its performance and accuracy was completed. This led to the conclusion that certain factors used to determine indoor and outdoor water budgets need to be adjusted to improve the calculation of efficient water budgets. These factor changes were implemented in FY 2015-2016 and are summarized in the table below: Variable Definition Current RCWD Factor Effective July 1, 2015 Single Family The default number of Default residents in the household, 4 Residents Per Household, 3 Residents Per Household, Household each using 60 gallons per each using 60 gallons per day. each using 55 gallons per day. Size day.
(Tier I) Multifamily Default The default number of Household residents in the household, 3 Residents Per Household, 3 Residents Per Household, Size each using 60 gallons per each using 60 gallons per day. each using 55 gallons per day. day (Tier I) ETAF adjusts ET values used to calculate the Irrigated Square Feet ETAF Irrigated Square Feet ETAF ETAF maximum amount of water 1 to 74,999 85% 0 to 30,000 75%
that should be applied to a 75,000 to 99,999 70% 30,000 to 75,000 60% (Tier II) landscape. It is expressed in 100,000 to 150,000 60% inches of water. Ultra-efficient usage of Rancho Division Rancho Division Landscape water for irrigation for ETAF of 32% ETAF of 23% Customer landscape exclusive Santa Rosa Division Santa Rosa Division (Tier I) customers ETAF of 19% ETAF of 13% Single Family Residence Single Family Residence Irrigated Square Feet ETAF Irrigated Square Feet ETAF 0 to 75,000 85% 0 to 30,000 75% LA includes all areas on a 75,001 to 100,000 70% 30,001 to 75,000 60% Landscape customer’s property that 100,001 to 150,000 60% 75,001 to 150,000 0% Area (LA) have grass, shrubs, trees, 150,001+ 60% ground cover, etc. that are Multi Family Residence Multi Family Residence (Tier II) irrigated and measured in Irrigated Square Feet ETAF Irrigated Square Feet ETAF square feet (SF). 0 to 75,000 85% 0 to 30,000 75% 75,001 to 100,000 70% 30,001 to 75,000 60% 100,001 to 150,000 60% 75,001 to 150,000 60% 150,001+ 60% 150,001+ 60%
75 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Recycled Water Rates - The District has two sources of recycled water that is available for resale to approved users. The first source is recycled water that is generated as a bi-product of wastewater treatment at the District’s Santa Rosa Treatment Plant. The second source of recycled water is purchased under a contract with EMWD. The District is adjusting its current rate from $309.35 to $332.55 per acre-foot for M&I and Ag users; and RCWD’s construction rates will increase 8.1% from the current rate of $726.00 per acre-foot to $785.00 per acre-foot. Santa Rosa Water Reclamation Facility (SRWRF) - The total budgeted operating costs for the SRWRF increased by $61,533 or 1.5%. This increase is a result of increased corrective maintenance occurring on a multi-year cycle and increased energy costs offset by a reduction of a wastewater operator position through planned attrition. Therefore, the proposed monthly rate per equivalent dwelling unit (EDU) is remaining constant at $38.75 per EDU with changes in the rate components. The table below details the rate impacts:
RATE COMPONENT CURRENT PROPOSED CHANGE O&M $19.75 $18.00 ($1.75) Collections 3.75 4.25 0.50 Adv. Treatment 2.00 3.00 1.00 Replacement 4.00 4.00 0.00 Capital/Debt Service 9.25 9.50 0.25 Total $38.75 $38.75 $0.00 Monthly Service Charge - A large percentage of the District’s operating costs are of a fixed nature, and do not vary with increased water deliveries. A monthly fee is levied on each water meter according to the rate of flow that the meter is capable of delivering. The philosophy behind this fee is that the fixed costs to the District will remain irrespective of water demands and represent the cost to keep the system ready to meet demands. Therefore, these fixed costs are allocated primarily on a meter capacity basis. The fixed monthly service charges for all meter sizes in the Rancho and Santa Rosa Divisions will be increased for the fiscal year 2016-2017 as recommended by the Board of Directors. The District had been adjusting these rates in the Rancho and Santa Rosa Divisions by 5% to 7% a year, based upon a rate study performed in 1990, and updated in 1997 and annually thereafter, which has covered the costs of inflation, but has not corrected the fixed-cost shortfall. For the 2016- 2017 budget, the shortfall has significantly diminished and the District will only be increasing these rates on average between 3.5% and 3.7%. Therefore, approximately 80% of the Rancho Division fixed costs, and 74% of Santa Rosa Division’s fixed cost, will be recovered by the monthly service charge. Energy Charges - It is estimated that the District’s fiscal year 2015-2016 energy budget, of $7,262,954 will decrease to $6,622,999 for the fiscal year 2016-2017. This equates to a decrease of $639,955 or an 8.8% decrease over the prior year. There is a slight increase in Southern California Edison rates over prior year but the decrease in costs is driven by a decrease in demand of 9.5%. Rancho Division customers will see the energy component of their water rate decrease 14.8%. Santa Rosa Division customers’ zones will see the energy component of their rate decrease on average by 12.5%. Energy charges are based on pressure zones within the Rancho Division (outlined in red) and the Santa Rosa Division (outlined in orange), as identified in map on the following page:
76 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
SALES QUANTITIES BUDGETED SALES PROJECTED IN ACRE FEET 2014-2015 2015-2016 2016-2017 DIVISION ACTUAL BUDGETED BUDGETED Rancho Division 37,582 37,589 33,801 Santa Rosa Division 26,053 26,096 23,852 Totals 63,635 63,685 57,653 Production 66,126 65,726 59,762 Percentage of Average Production Loss 3.9% 3.1% 3.6% Table 7.1
77 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
FOOTNOTE #3 – NEW SERVICE CONNECTIONS The budget line item titled “New Service Connections” in the operating revenue and transmission and distribution sections of the Operating Budget represents the estimated revenue and costs associated with the installation of new water meter services.
FOOTNOTE #4 – WATER COST The source of supply costs associated with the Rancho and Santa Rosa Water Divisions are accumulated in the Resource Division. The underlying accounting records track the specific costs of water production and supply for the Rancho, Santa Rosa, Resource wells and import water. These costs are then allocated back to the respective water division after consideration of the 12,000 acre- foot benefit to the Rancho Division, and 2,000 acre-foot benefit to the Santa Rosa Division, in accordance with legal requirements. The budget line item titled “Purchased Water Resource” represents the allocation of these costs.
PROJECTED PRODUCTION REQUIREMENTS IN ACRE FEET
2014-2015 2015-2016 2016-2017 ACTUAL BUDGETED BUDGETED SANTA SANTA SANTA PRODUCTION TYPE RANCHO ROSA RANCHO ROSA RANCHO ROSA Native Well 17,546 7,472 18,060 8,060 16,880 6,880 Treated Import 12,672 12,145 12,714 12,263 9,027 10,281 Import Recharge 6,127 6,127 5,350 5,350 6,350 6,350 Recycled 3,157 880 2,669 1,260 2,778 1,216 Total AF Req. 39,502 26,624 38,793 26,933 35,035 24,727 Avg. Cost Per AF $603 $781 $615 $767 $631 $821 Avg. Production Loss 4.3% 3.5% 3.1% 3.1% 3.6% 3.6% Table 7.2 FOOTNOTE #5 – OVERHEAD ALLOCATIONS General, Administrative and Fringe Benefits - Indirect general, administrative and fringe benefit overhead costs are allocated to operating, fee-for-service and capital activities based upon direct labor hours. General Engineering Support - Prior to 1991-92, 100% of the District’s general engineering support costs was charged to Operations. After studying the components of the general engineering support costs, it was determined that capital and fee-for-service customers obtained substantial benefit from the expenditures relating to non-directly allocable engineering costs. Therefore, a general engineering overhead rate was established based upon an estimate of the fee-for-service and capital portion of general engineering costs. The remaining general engineering costs, which were not allocable to fee- for-service or capital jobs, were charged to each of the water and sewer divisions based upon an estimate of their relative benefit as determined by new construction activity.
78 Rancho California Water District Fiscal Year 2016-2017 Operating Budget
Presented below is a comparison of overhead rates: 2015-2016 2016-2017 CATEGORY BUDGETED BUDGETED General & Administration 132.4% 136.9% Fringe Benefits1 66.7% 71.7% Vehicle & Equipment 10.2% 10.2% Operations 26.4% 22.3% Operating Overhead Rates 235.7% 241.1% Engineering Direct Rate 88.5% 105.4% Less Operations Rate <26.4%> <22.3%> Total Fee for Service & Capital Allocation Rate 297.8% 324.2% Table 7.3 1Fringe benefit overhead rate including non-cash amortized expense is 73.6% for fiscal year 2016-2017
FOOTNOTE #6 – WASTEWATER OPERATIONS Santa Rosa Water Reclamation Facility (SRWRF) - The monthly treatment rate for the Santa Rosa Division’s wastewater customers will remain at $38.75 per month per connected EDU, and $25 per month per unconnected EDU, for which capacity fees have been received and fall under the special classifications of existing ordinances for wastewater capacity. Twenty-five dollars and twenty-five cents ($25.25) of the thirty-eight dollars and seventy-five cents ($38.75) monthly fee will cover the cost of operations, four dollars ($4.00) will be set aside to fund future replacement costs, and nine dollars and fifty cents ($9.50) will be used for debt service.
79 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Rates & Fees Schedules
RANCHO DIVISION
POTABLE WATER RATES 2015-2016 RATES 2016-2017 RATES % OF CHANGE Residential, (1)Pre 03 (2)Post 03 Pre 03 Post 03 Pre 03 Post 03 Standard Standard Standard Multifamily, Annex Annex Annex Annex Annex Annex Landscape Tier I 0.660 2.229 2.545 0.670 2.345 2.620 1.5% 5.2% 3.0% Tier II 1.500 2.229 2.545 1.510 2.345 2.620 0.7% 5.2% 3.0% Tier III 2.490 2.490 2.545 2.570 2.570 2.620 3.2% 3.2% 3.0% Tier IV 6.320 6.320 6.320 6.500 6.500 6.500 2.8% 2.8% 2.8%
Commercial, 2015-2016 RATES 2016-2017 RATES % OF CHANGE (1)Pre 03 (2)Post 03 Pre 03 Post 03 Pre 03 Post 03 Industrial, & Other Standard Standard Standard Annex Annex Annex Annex Annex Annex Tier I 1.230 2.229 2.545 1.260 2.345 2.620 2.4% 5.2% 3.0% Tier II 2.880 2.875 2.875 2.990 2.990 2.990 3.8% 4.0% 4.0% Agricultural Agricultural- 2015-2016 RATES 2016-2017 RATES % OF CHANGE Residential Tier I 1.230 1.260 2.4% Tier II 2.880 2.990 3.8% (1) Rate for certain properties annexed into the District before 2003 (2) Rate for certain properties annexed into the District after 2003Rate
ENERGY RATES
2015-2016 RATES 2016-2017 RATES % OF CHANGE Projected Rate by Pump Zone in HCF (Addition to Water (1)M&I AG M&I AG M&I AG Commodity) 1305 ------1380 0.04050 0.04050 0.03450 0.03450 -14.8% -14.8% 1485 0.09720 0.09720 0.08280 0.08280 -14.8% -14.8% 1550 0.13230 0.13230 0.11270 0.11270 -14.8% -14.8% 1610 0.16470 0.16470 0.14030 0.14030 -14.8% -14.8% 1790 0.26190 0.26190 0.22310 0.22310 -14.8% -14.8% 1880 0.41310 0.41310 0.35190 0.35190 -14.8% -14.8% 2070 0.41310 0.41310 0.35190 0.35190 -14.8% -14.8% 2350 0.56430 0.56430 0.48070 0.48070 -14.8% -14.8%
TOTAL WEIGHTED AVERAGE RATE IMPACT: -14.8% -14.8% (1) Municipal & Industrial
80
Rancho California Water District Fiscal Year 2016-2017 Operating Budget Rates & Fees Schedules
SANTA ROSA DIVISION
POTABLE WATER RATES 2015-2016 RATES 2016-2017 RATES % OF CHANGE Residential, (1)Pre 03 (2)Post 03 Pre 03 Post 03 Pre 03 Post 03 Standard Standard Standard Multifamily, Annex Annex Annex Annex Annex Annex Landscape Tier I 1.010 2.229 2.545 1.090 2.323 2.596 7.9% 4.2% 2.0% Tier II 1.990 2.229 2.545 2.000 2.323 2.596 0.5% 4.2% 2.0% Tier III 2.480 2.480 2.545 2.550 2.550 2.596 2.8% 2.8% 2.0% Tier IV 6.320 6.320 6.320 6.500 6.500 6.500 2.8% 2.8% 2.8%
Commercial, 2015-2016 RATES 2016-2017 RATES % OF CHANGE (1)Pre 03 (2)Post 03 Pre 03 Post 03 Pre 03 Post 03 Industrial, & Other Standard Standard Standard Annex Annex Annex Annex Annex Annex Tier I 1.670 2.229 2.545 1.760 2.323 2.596 5.4% 4.2% 2.0% Tier II 2.850 2.715 2.715 2.870 2.870 2.870 .7% 5.7% 5.7% Agricultural Agricultural- 2015-2016 RATES 2016-2017 RATES % OF CHANGE Residential Tier I 1.670 1.760 5.4% Tier II 2.850 2.870 .7% (1) Rate for certain properties annexed into the District before 2003 (2) Rate for certain properties annexed into the District after 2003
ENERGY RATES
2015-2016 RATES 2016-2017 RATES % OF CHANGE Projected Rate by Pump Zone in HCF (Addition to Water (1)M&I AG M&I AG M&I AG Commodity) 1305 ------1434 0.05160 0.05160 0.04515 0.04515 -12.5% -12.5% 1440 (1060, 1160) 0.05400 0.05400 0.04725 0.04725 -12.5% -12.5% 1500 0.07800 0.07800 0.06825 0.06825 -12.5% -12.5% 1670 0.14600 0.14600 0.12775 0.12775 -12.5% -12.5% 1990 0.27400 0.27400 0.23975 0.23975 -12.5% -12.5% 2160 (2153) 0.34200 0.34200 0.29925 0.29925 -12.5% -12.5% 2260 0.38200 0.38200 0.33425 0.33425 -12.5% -12.5% 2550 0.49800 0.49800 0.43575 0.43575 -12.5% -12.5% 2850 0.61800 0.61800 0.54075 0.54075 -12.5% -12.5%
TOTAL WEIGHTED AVERAGE RATE IMPACT: -12.5% -12.5% (1) Municipal & Industrial
81
Rancho California Water District Fiscal Year 2016-2017 Operating Budget Rates & Fees Schedules
MONTHLY SERVICE CHARGES 2015-2016 Rate 2016-2017 Rate % of Increase Meter Rancho Santa Rancho Santa Rancho Santa Size Rosa Rosa Rosa 3/4" $ 20.20 $ 37.93 $ 21.22 $ 40.58 5% 7% 1" 30.36 63.71 30.97 63.71 2% 0% 1-1/2" 52.26 110.80 53.30 110.80 2% 0% 2" 78.78 174.62 80.75 174.62 3% 0% 2-1/2" 124.68 259.30 37.15 285.23 10% 10% 3" 218.99 406.84 234.32 447.52 7% 10% 4" 449.39 962.32 456.13 991.19 2% 3% 6" 716.84 1,581.33 727.59 1,581.33 2% 0% 8" 1,089.19 2,186.17 1,089.19 2,251.76 0% 3%
CONSTRUCTION & NON-POTABLE WATER RATES *(Base Water Rates Per HCF) RANCHO DIVISION SANTA ROSA DIVISION Description FY 2015-2016 FY 2016-2017 FY 2015-2016 FY 2016-2017 Construction Water $3.333/HCF $3.604/HCF $3.333/HCF $3.604/HCF $726.00/AF + $785.00/AF + $726.00/AF + $785.00/AF + Recycled $20 Monthly $20 Monthly $20 Monthly $20 Monthly Construction Water Service Charge Service Charge Service Charge Service Charge $309.35/AF + $332.55/AF + $309.35/AF + $332.55/AF + Tertiary Treated $20 Monthly $20 Monthly $20 Monthly $20 Monthly Service Charge Service Charge Service Charge Service Charge $309.35/AF + $332.55/AF + $309.35/AF + $332.55/AF + Agricultural $20 Monthly $20 Monthly $20 Monthly $20 Monthly Service Charge Service Charge Service Charge Service Charge *Customers will be charged the appropriate pump zones’ energy rates in addition to the base rate.
82 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Fee for Services Schedule
FEE FOR SERVICE SCHEDULE FEE/ DESCRIPTION OF SERVICE DEPOSIT 1 Water Availability Letters Single lot $180 Tract/Parcel map $300 2 Fire Hydrant Location Map & Flow Capability Modeling $300 3 Topographic Map $25 4 Topographic Map w/Aerial $35 5 Black Line Copies (24’ x 36’) – Each $12 6 CFD/Assessment District (Processing Fee) [Deposit] $10,000 Assessment District Pay-Off Administrative Fee $25 Request for RCWD Participation in Joint Community Facilities Financing 7 $5,000 Agreement (JCFA) (Processing Fee) [Deposit] 8 Annexation Processing Deposit $10,000 9 Annexation Acreage Fee Rancho Division $5,016 Santa Rosa Division $3,790 10 Fire Hydrant Meter Deposit (4-inch) $750 11 Construction Meter Deposit (4-inch) $1,500 12 Construction Meter Deposit (6-inch) $3,000 13 Construction Meter Relocation $75 14 Meter Test Requests (3/4-inch to 2-inch) $50 15 Meter Test Requests (3-inch and larger) $100 16 Floating Meter “No Read” Penalty $200 17 Construction Meter Location Penalty $200 18 Unmetered Water Accounts $52 19 Meter Obstruction Charge $77 20 Meter Relocation Deposit (3/4-inch to 2-inch) $2,000 21 Meter Downsize Deposit (3/4-inch to 2-inch MJ and Turbo) $1,300 22 Drop-In Meter Installations Meter w/Double Checks ¾-inch MJ-Single $788 ¾-inch MJ-Multiple $784 1-inch MJ $946 1-1/2-inch MJ $1,322 2-inch MJ $1,557 2-inch Turbo $1,650 Meter w/Pressure Regulator and Double Checks ¾-inch MJ-Single $911 ¾-inch MJ-Multiple $908 1-inch MJ $1,092 1-1/2-inch MJ $1,885 2-inch MJ $2,161 2-inch Turbo $2,232
83 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Fee for Services Schedule
23 Full Meter Installations Meter w/Double Checks ¾-inch MJ-Single $5,890 1-inch MJ $5,963 1-1/2-inch MJ $6,378 2-inch MJ $6,727 2-inch Turbo $6,804 Meter w/Pressure Regulator and Double Checks ¾-inch MJ-Single $5,969 1-inch MJ $6,101 1-1/2-inch MJ $6,934 2-inch MJ $7,381 2-inch Turbo $7,404 24 Engineering: Project Planning/Hydraulic Evaluation $1,000 Plan Review Pipelines – Up to 1,000 Linear Feet $3,000 Plan Review Pipelines – Per 100 Foot Thereafter $1.00 Plan Review Misc. Appurtenances (DCDA’s, FH’s, Meters, etc.) – Up to 4 App. $3,000 Groupings Misc. Appurtenances (DCDA’s, FH’s, Meters, etc.) – Add’l 4 App. Groupings $1,000 Plan Review On-Site Recycled Water System $3,000 25 Inspection Pipelines- Up to 1,000 Linear Feet $5,000 Pipelines – Per 100 Foot Thereafter $1.00 Misc. Appurtenances (DCDA’s, FH’s, Meters, etc.) – Up to 4 App. Groupings $2,000 Misc. Appurtenances (DCDA’s, FH’s, Meters, etc.) – Add’l 4 Ap. Groupings $500 On-Site Recycled Water System $5,000 ¾” Detector Check Meter Fee $325 26 Post Construction Record Drawing Preparation & Processing/GIS Conversion $125 (per usage of plan)
27 RP Device Initial Certification Fee $180 Recertification Fee $150 28 Potable Construction Water $3.604/HCF 29 Application Processing Fee (non-refundable) $50 30 Service Connection Fee Estimate $167 31 Bond Split Deposit $1,500 Per Parcel $35 32 Sewer Lateral Sampling Wyes/Inspection, etc. $155 33 Non-Compliance Sampling and Unauthorized Use Charges $105 34 Non-Compliance Inspection $130 35 Non-Compliance Inspection/Meeting $210 36 Transfer Set-Up Charge $23 37 Delinquent Accounts (% x Balance) 1st 30 days Greater of $5 or 10% Each 30 Days Thereafter $0.02
84 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Fee for Services Schedule
38 DTO’s (Turn service back on after shut-off for non-payment; or non-compliance to recycle water agreement) M-F 8 a.m. to 5 p.m. $46 M-F after 5 p.m.; Weekends and Holidays $109 39 Non-Sufficient Funds/NSF Returned Check Fee $25 40 Cutting District lock or straight-lining across meter (previously referred to as $125 Lock Off Vandalism Penalty) 41 For a second cut District lock $250 42 Cutting Angle Meter (AM) Stop from Meter $125 43 Replacement of pulled meter resulting from customer cutting lock a second time $100 44 Illegal Hydrant Use $600 45 Fire Service Charge for Industrial/Commercial w/Water Meter 0-30,000 sq. ft. (charged on water bill) $0.002/sq. ft. Over 30,000 sq. ft. (charged on water bill) $0.001/sq. ft. Annual Fee Per Acre or Per Parcel if Less than 1 Acre $40 46 Site License, Land Lease, and Encroachment Permits Deposit $5,000 47 48-Hour Notice Processing Fee $20 48 Water Supply Assessment Deposit $20,000. 49 Geographical Information System (GIS) Data Request Fee $92/Hr.
ZONES OF BENEFIT
ZONE FEE/ACRE 1 $390/AC 2 $4,138/AC 3 $3,611/AC 5 $3,192/AC 7 $3,606/AC 8 $5,598/AC
85 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Forecast
Five Year Operating Forecast A five year operating forecast has been developed that projects the impacts of growth and increased demand along with the increased import water requirements. This is accomplished using regression analysis to project water demand, which then drives projected production requirements. The District uses the projected import water rates from the Metropolitan Water District of Southern California to determine projected water cost. In order to forecast projected energy expenses, the District utilizes rate projections from Southern California Edison and the Gas Company. With regard to wage increases, the District utilizes the historical average wage increase to project wages and utilizes the consumer price index to estimate increases in material and outside service expenses. All of these estimated inputs drive the projected 5-year budget information. The District is projected to continue growing from the current customer base of approximately 44,291 water service connections to over 62,000 water service connections at build out (2050). This growth will drive the need for more import water supplies which will in turn increase the cost of providing water to our customers. Over the next five years, it is projected that water demand will increase 22.8% and treated import water cost will increase 13.0%. The greater percentage increase in import water cost is a combination of increased quantities and increased rates by MWD. Based on the forecasted operating costs, a five-year projection of water commodity and monthly wastewater rates was calculated and is presented on the following pages.
Demand Forecast
Operating Forecast
Rate Forecast
86 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Forecast
POTABLE WATER FORECAST
SUMMARY BUDGET & FORECAST – BY TYPE TOTAL - BUDGET Ag Ag/Dom Dom. Other Total Prior Yr. 15-16 16,865 6,150 25,275 11,585 59,875 Budget 16-17 15,700 5,355 22,401 10,322 53,778 17-18 16,640 5,719 23,483 11,001 56,843 Five Year 18-19 17,578 6,083 24,565 11,690 59,916 Forecast 19-20 18,519 6,446 25,646 12,378 62,989 20-21 19,458 6,810 26,728 13,066 66,062
SUMMARY OF BUDGET & FORECAST – BY PUMP ZONE PER FISCAL YEAR Rancho Zones 16-17 17-18 18-19 19-20 20-21 1305 6,859 7,233 7,608 7,984 8,360 1380 7,472 7,879 8,288 8,698 9,107 1485 9,182 9,683 10,186 10,689 11,192 1550 805 848 893 937 981 1610 2,979 3,142 3,305 3,468 3,631 1790 1,969 2,076 2,184 2,292 2,400 1880 (2070) 187 198 208 218 228 2070 1,490 1,571 1,653 1,734 1,816 2350 165 174 183 192 201 TOTAL 31,106 32,802 34,506 36,211 37,915
Santa Rosa Zones 16-17 17-18 18-19 19-20 20-21 1305 497 528 558 588 618 1440 5,402 5,728 6,054 6,380 6,706 1500 3,157 3,348 3,538 3,729 3,919 1670 8,555 9,071 9,588 10,104 10,620 1990 3,079 3,265 3,451 3,636 3,822 2153 26 28 30 31 33 2160 149 158 167 176 185 2260 315 334 353 372 391 2550 1,457 1,545 1,633 1,721 1,809 2850 35 38 40 42 44 TOTAL 22,672 24,041 25,410 26,778 28,147 District Total 53,778 56,843 59,916 62,989 66,062 Excludes recycled water
87 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Forecast
PROJECTED RESULTS OF OPERATIONS (In 1,000’s) 16-17 17-18 18-19 19-20 20-21 OPERATING REVENUES Water Revenue $37,525 $41,257 $45,781 $50,188 $54,210 Monthly Service Charges(1) 18,911 19,479 20,866 22,566 24,405 Energy Charges 2,584 2,780 2,889 2,986 3,089 Wastewater Service(2) 4,142 4,271 4,428 4,539 4,754 Other Revenue 3,618 3,693 3,244 3,406 3,576 Total Operating Revenue $66,779 $71,479 $77,207 $83,684 $90,034
OPERATING EXPENSES Source of Supply(3) $39,176 $42,460 $46,787 $51,867 $56,648 Booster Pumping(4) 3,948 4,227 4,412 4,589 4,776 Transmission & Distribution 9,306 9,771 10,260 10,773 11,311 Customer Service 4,917 5,161 5,419 5,690 5,974 Reclaimed Water 3,212 3,373 3,542 3,719 3,905 Wastewater Expense 3,565 3,707 3,800 3,895 3,993 Engineering 1,358 1,423 1,495 1,563 1,641 Support 1,969 2,065 2,169 2,272 2,385 Total Operating Expenses $67,451 $72,189 $77,883 $84,367 $90,633
Net Operating Revenue ($671) ($710) ($676) ($683) ($600)
Interest Earnings $493 $493 $493 $493 $493 Non-Cash Item $197 $197 $197 $197 $197
Net Source/(Uses) of Cash $18 ($20) $13 $7 $90 Table 8.1 (1)Monthly Service Charges assume 0% growth in accounts through 2016-2017. Then 3% growth thereafter. Also includes an annual increase in the monthly service charges of 5% in Rancho Division and 7% in the Santa Rosa Division (2)Wastewater service charge assumes 2.5% growth rate. (3)Includes projected import water rates per MWD LRFP. (4)Includes estimated average energy rate increase of 3%. (5)Other expenses are indexed at 4%. Source: Rancho California Water District
88 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Forecast
PROJECTED RATE REQUIREMENTS – COMBINED WATER & ENERGY
16-17 17-18 18-19 19-20 20-21 RANCHO DIVISION WATER RATES M&I Water Commodity $1.265 $1.338 $1.434 $1.510 $1.565 Average Energy Rate $0.083 $0.087 $0.091 $0.096 $0.101 Total M&I per HCF $1.348 $1.425 $1.525 $1.606 $1.665 Total M & I Rate per A/F $587 $621 $664 $700 $725 AGRICULTURAL Water Commodity $1.265 $1.338 $1.434 $1.510 $1.565 Average Energy Rate $0.083 $0.087 $0.091 $0.096 $0.101 Total Agricultural Rate per HCF $1.348 $1.425 $1.525 $1.606 $1.665 Total Agricultural Rate per A/F $587 $621 $664 $700 $725 SANTA ROSA DIVISION WATER RATES M&I Water Commodity $1.754 $1.804 $1.877 $1.952 $2.003 Average Energy Rate $0.128 $0.134 $0.141 $0.148 $0.155 Total M&I Rate per HCF $1.882 $1.938 $2.018 $2.100 $2.158 Total M&I Rate per A/F $819 $844 $879 $915 $940 AGRICULTURAL Water Commodity $1.754 $1.804 $1.877 $1.952 $2.003 Average Energy Rate $0.128 $0.134 $0.141 $0.148 $0.155 Total Agricultural Rate per HCF $1.882 $1.938 $2.018 $2.100 $2.158 Total Agricultural Rate per A/F $819 $844 $879 $915 $940
PROJECTED WASTEWATER CHARGE WASTEWATER MONTHLY CHARGE $38.75 $38.75 $38.75 $38.75 $38.75 Table 8.2
89 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Forecast
Projected Ag and M&I Combined Water & Energy Rate Increases Rancho Division
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00% 16-17 17-18 18-19 19-20 20-21 % Increase 2.20% 5.7% 7.1% 5.3% 3.7%
Chart 8.1
Projected Ag and M&I Combined Water & Energy Rate Increases Santa Rosa Division
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00% 16-17 17-18 18-19 19-20 20-21 % Increase 5.76% 3.0% 4.1% 4.1% 2.8%
Chart 8.2
90 BOARD OF DIRECTORS & DISTRICT OFFICERS
President
Sr. Vice President
91 Vice President Vice President Vice President Vice President Vice President
General Manager
Assistant General Manager Director of Administration Chief Engineer District Secretary Director of Finance/Treasurer
Rancho California Water District Budgeted July 2016 BOARD OF DIRECTORS
President
Sr. Vice President
92 Vice President Vice President Vice President Vice President Vice President
Rancho California Water District Budgeted July 2016 DISTRICT MANAGEMENT
General Manager
Director of Finance/ Director of Human Resources Assistant General Manager District Secretary Treasurer Administration Manager
Accounting Manager Engineering Manager - Chief Engineer
Operations
Field Services Manager Construction Contracts - Construction Manager 93
Water Reclamation Engineering Manager – Manager CIP & Design
Water Operations Water Resources Manager Manager
Rancho California Water District Budgeted July 2016 DISTRICT ADMINISTRATIVE OFFICERS
General Manager
Director of Finance/ Assistant General Manager Director of Administration District Secretary Chief Engineer Treasurer
94
Rancho California Water District Budgeted July 2016 OPERATIONS & MAINTENANCE DIVISION OPERATIONS
Assistant General Manager
Water Operations Water Manager Reclamation Manager Engineering Manager -
Operations Wastewater Electrical Services Water Quality Water System Maintenance Supervisor Supervisor Supervisor Operations Systems Supervisor
Administrator
Sr. Plant Maintenance Sr. Electrical Controls/ Sr. Water Treatment Water System Operator Field Services Foreman Corrosion Control Instrumentation Technician Technician Operations Systems Wells & Pumps Operator Analyst Technician II Analyst
Plant Maintenance Sr. Electrical Controls/ Sr. Water Treatment 95 Sr. Water System Well & Pump Technician II Instrumentation Technician Operator Operator Technician II
Sr. Wastewater Collection Sr. Electrical Controls/ Sr. Water Treatment Systems Technician Sr. Water System Well & Pump Instrumentation Technician Operator Operator Technician II
Wastewater Plant Operator in Training (OIT) Electrical Controls/ Sr. Water Treatment Sr. Water System Instrumentation Technician Operator Operator II
Sr. Wastewater Plant Operator Electrical Controls/ Cross Connection Lead Field Services Instrumentation Technical II Control Specialist Worker - Ops
Sr. Wastewater Plant
Electrical Controls/ Cross Connection Operator Field Services Worker II Instrumentation Technician Control Technician I - Ops II
Sr. Wastewater Plant Field Services Worker II Operator
- Ops Wastewater Plant Operator II Intern
Rancho California Water District
Operations (41) Budgeted July 2016 OPERATIONS & MAINTENANCE DIVISION FIELD SERVICES
Assistant General Manager
Field Services Manager
Field Services Supervisor Field Services Supervisor Operations & Maintenance Technician Construction Facilities
Operations & Maintenance Assistant
Field Services Foreman Field Services Foreman Field Services Foreman Field Services Foreman Meter/AMR Field Services Foreman Fleet & Facilities 96 Construction Construction Construction
Sr. Field Services Worker Meter/AMR Sr. Mechanic Lead Field Services Lead Field Services Lead Field Services Worker Construction Worker Construction Worker Construction Sr. Field Services Worker Meter/AMR
Field Services Worker II Field Services Worker II Field Services Worker II Construction Construction Construction Sr. Field Services Worker Meter/AMR
Field Services Worker II Field Services Worker II Field Services Worker II Construction Field Services Worker II Construction Construction Meter/AMR
Field Services Worker II Field Services Worker I Field Services Locator II Sr. Field Services Worker Construction Construction Construction Meter/AMR
Field Services Worker I Sr. Field Services Worker Field Services Worker I Meter/AMR Construction Construction
Field Services Worker I Meter/AMR
Intern
Rancho California Water District
Field Services (33) Budgeted July 2016 ENGINEERING DIVISION
Assistant General Manager
Chief Engineer Sr. Administrative Assistant
Office Assistant II
Engineering Manager – Construction Contracts Water Resources Manager CIP & Development Manager
97 Engineering Services Contracts Administrator II Principal Engineer Supervisor
Engineering Technician I Construction Inspector Principal Engineer Supervisor
Engineering Technician I Sr. Construction Inspector Principal Engineer
Engineering Technician I Construction Inspector II Principal Engineer
Associate Engineer
GIS Analyst II
Rancho California Water District
Engineering (20) Budgeted July 2016 ADMINISTRATION
Director of Administration
Sr. Water Resources Datacenter Operations Administrative Services Customer Service GIS Coordinator Utility Analyst ERP Business Analyst Planner Supervisor Supervisor Supervisor
Conservation and Sr. Systems Sr. Customer Service Office Assistant II Water Budget Analyst Administrator Rep - Office
Water Use Efficiency Office Assistant II Customer Service Specialist I Records Management Rep II - Office
Office Assistant II Customer Service Mailroom Rep II - Office 98
Customer Service Rep II - Office
Customer Service Rep I - Office
Customer Service Rep I - Office
Customer Service Rep II - Field
Customer Service Rep II - Field
Customer Service Rep II - Field
Rancho California Water District
Administration (23) Budgeted July 2016 BOARD ADMINISTRATION
General Manager
Senior Public District Secretary Information Officer
Administrative Public Information Assistant II Specialist I/II
99
Rancho California Water District
Board Administration (5) Budgeted July 2016 FINANCE DIVISION
Director of Financer/ Treasurer
Budget/Debt Sr. Administrative Accounting Manager Financial Analyst Administrator Assistant
Accountant
Accountant
100 Sr. Accounting Analyst
Accounting Analyst
Accounting Clerk II Accounts Payables
Purchasing/Warehouse Supervisor
Purchasing Agent II
Purchasing Agent II
Rancho California Water District
Finance (13) Budgeted July 2016 HUMAN RESOURCES
Human Resources Manager
Sr. Human Resources Human Resources Analyst I Safety/Risk Officer Analyst
101
Rancho California Water District
Human Resources (4) Budgeted July 2016 Fiscal Year 2016-2017 Operating Budget
AT-WILL EXECUTIVE MANAGEMENT SALARY SCHEDULE Board Approved on November 12, 2015
EXECUTIVE MANAGEMENT BY TITLE MONTHLY SALARY ANNUAL SALARY Minimum Maximum Minimum Maximum General Manager $19,250.00 $231,000.00
Assistant General Manager $13,462.00 $17,500.00 $161,538.00 $210,000.00 Director of Finance/Treasurer $11,859.00 $15,417.00 $142,308.00 $185,000.00 Director of Administration $11,500.00 $15,000.00 $138,000.00 $180,000.00 Chief Engineer $12,179.00 $15,833.00 $146,154.00 $190,000.00 Director of Operations & Maintenance $11,859.00 $15,417.00 $142,308.00 $185,000.00 Human Resources Manager $9,615.00 $12,500.00 $115,385.00 $150,000.00
Notes:
Executive management positions are also eligible to receive a performance bonus award at the end of the Fiscal Year by the General Manager. Bonus amounts have ranged from 0% to 4% of salary.
The General Manager position currently receives an auto allowance of $600/month. The Assistant General Manager position may receive an auto allowance of $500/month, depending on what is negotiated on employment agreement. The District does not pay PERS on the auto allowance.
Other positions are reimbursed for mileage expenses directly. The District does not pay PERS on the auto allowance or mileage reimbursement.
102 Rancho California Water District MPCEA Exempt Salary Ranges Fiscal Year 2016- 2017 Effective July 1, 2016 3.81% Range Movement Hourly Monthly Annual
Title Grade MOU Article 7 MOU Article 7 MOU Article 7 Minimum Control Maximum Provision Minimum Control Maximum Provision Minimum Control Maximum Provision
Engineering Manager - CIP & Design 1 $ 57.743 $ 69.292 $ 76.221 $ 77.364 $ 10,008.79 $ 12,010.61 $ 13,211.64 $ 13,409.76 $ 120,105.44 $ 144,127.36 $ 158,539.68 $ 160,917.12 Engineering Manager -Operations
Accounting Manager 2 $ 54.994 $ 65.993 $ 72.592 $ 73.680 $ 9,532.29 $ 11,438.79 $ 12,582.61 $ 12,771.20 $ 114,387.52 $ 137,265.44 $ 150,991.36 $ 153,254.40 Construction Contracts Manager Field Services Manager Finance Manager Information Tech./Cust. Svc. Manager Operations Project Manager Water Operations Manager Water Reclamation Manager Water Resources Manager
Vacant 3 $ 52.377 $ 62.852 $ 69.137 $ 70.173 $ 9,078.68 $ 10,894.35 $ 11,983.75 $ 12,163.32 $ 108,944.16 $ 130,732.16 $ 143,804.96 $ 145,959.84
Vacant 4 $ 49.881 $ 59.857 $ 65.843 $ 66.829 $ 8,646.04 $ 10,375.21 $ 11,412.79 $ 11,583.69 $ 103,752.48 $ 124,502.56 $ 136,953.44 $ 139,004.32
103 Principal Engineer 5 $ 47.504 $ 57.005 $ 62.706 $ 63.645 $ 8,234.03 $ 9,880.87 $ 10,869.04 $ 11,031.80 $ 98,808.32 $ 118,570.40 $ 130,428.48 $ 132,381.60
Senior Water Resource Planner 6 $ 45.248 $ 54.297 $ 59.727 $ 60.621 $ 7,842.99 $ 9,411.48 $ 10,352.68 $ 10,507.64 $ 94,115.84 $ 112,937.76 $ 124,232.16 $ 126,091.68
Accounting Supervisor 7 $ 43.091 $ 51.709 $ 56.880 $ 57.732 $ 7,469.11 $ 8,962.89 $ 9,859.20 $ 10,006.88 $ 89,629.28 $ 107,554.72 $ 118,310.40 $ 120,082.56 Associate Engineer Budget/Debt Administrator ERP Business Analyst Sr. Public Information Officer
Safety/Risk Officer 8 $ 41.037 $ 49.244 $ 54.168 $ 54.981 $ 7,113.08 $ 8,535.63 $ 9,389.12 $ 9,530.04 $ 85,356.96 $ 102,427.52 $ 112,669.44 $ 114,360.48 Water Resources Planner
Assistant Engineer 9 $ 39.083 $ 46.899 $ 51.589 $ 52.363 $ 6,774.39 $ 8,129.16 $ 8,942.09 $ 9,076.25 $ 81,292.64 $ 97,549.92 $ 107,305.12 $ 108,915.04
Public Information Officer II 10 $ 37.224 $ 44.669 $ 49.136 $ 49.872 $ 6,452.16 $ 7,742.63 $ 8,516.91 $ 8,644.48 $ 77,425.92 $ 92,911.52 $ 102,202.88 $ 103,733.76
District Secretary 11 $ 35.451 $ 42.541 $ 46.795 $ 47.496 $ 6,144.84 $ 7,373.77 $ 8,111.13 $ 8,232.64 $ 73,738.08 $ 88,485.28 $ 97,333.60 $ 98,791.68
Vacant 12 $ 33.765 $ 40.518 $ 44.570 $ 45.238 $ 5,852.60 $ 7,023.12 $ 7,725.47 $ 7,841.25 $ 70,231.20 $ 84,277.44 $ 92,705.60 $ 94,095.04
Accountant 13 $ 32.075 $ 38.490 $ 42.339 $ 42.973 $ 5,559.67 $ 6,671.60 $ 7,338.76 $ 7,448.65 $ 66,716.00 $ 80,059.20 $ 88,065.12 $ 89,383.84 Administrative Analyst Public Information Officer I
Note: Minimum to Control Point is a 20% Increase. Control Point to Maximum is a 10% Increase, Plus 3% Which Reflects the "Salary Range Buffer" for Topped Out Employees agreed to in MOUs Section 7. Rancho California Water District MPCEA Non - Exempt Salary Ranges Fiscal Year 2016 - 2017 Effective July 1, 2016 3.81% Range Movement Hourly Monthly Annual
Title Grade MOU Article 7 MOU Article 7 MOU Article 7 Minimum Maximum Provision Minimum Maximum Provision Minimum Maximum Provision Data Center Operations Supervisor A $ 47.707 $ 57.241 $ 58.099 $ 8,269.21 $ 9,921.77 $ 10,070.49 $ 99,230.56 $ 119,061.28 $ 120,845.92
Senior Human Resources Analyst D $ 41.208 $ 49.449 $ 50.190 $ 7,142.72 $ 8,571.16 $ 8,699.60 $ 85,712.64 $ 102,853.92 $ 104,395.20
Human Resources Analyst II G $ 35.595 $ 42.719 $ 43.359 $ 6,169.80 $ 7,404.63 $ 7,515.56 $ 74,037.60 $ 88,855.52 $ 90,186.72 Administrative Services Supervisor
Human Resources Analyst I I $ 32.287 $ 38.746 $ 39.327 $ 5,596.41 $ 6,715.97 $ 6,816.68 $ 67,156.96 $ 80,591.68 $ 81,800.16 Senior Administrative Assistant - Finance
Administrative Assistant II M $ 26.559 $ 31.869 $ 32.346 $ 4,603.56 $ 5,523.96 $ 5,606.64 $ 55,242.72 $ 66,287.52 $ 67,279.68
Administrative Assistant I O $ 24.095 $ 28.912 $ 29.346 $ 4,176.47 $ 5,011.41 $ 5,086.64 $ 50,117.60 $ 60,136.96 $ 61,039.68
Note: Minimum to Maximum is a 20% Increase. Maximum reflects 3% "Salary Range Buffer" for Topped Out Employees agreed to in MOU's Section 7. 104 Rancho California Water District RCWDEA Non‐Exempt Salary Ranges FY 2016‐2017 Effective July 1, 2016 3.81% Range Movement Hourly Monthly Annual Title Grade MOU Article 7 MOU Article 7 MOU Article 7 Minimum Maximum Provision Minimum Maximum Provision Minimum Maximum Provision Vacant A 47.707$ 57.241$ $ 58.099 $ 8,269.21 $ 9,921.77 $ 10,070.49 $ 99,230.56 $ 119,061.28 $ 120,845.92
Vacant B 45.436$ 54.515$ $ 55.332 $ 7,875.57 $ 9,449.27 $ 9,590.88 $ 94,506.88 $ 113,391.20 $ 115,090.56
Construction Inspector Supervisor C 43.267$ 51.921$ $ 52.699 $ 7,499.61 $ 8,999.64 $ 9,134.49 $ 89,995.36 $ 107,995.68 $ 109,613.92 Electrical Services Supervisor Field Services Supervisor - Construction Field Services Supervisor - Facilities GIS Coordinator Sr. Systems Administrator Water Quality Supervisor Water Systems Supervisor
Vacant105 D 41.208$ 49.449$ $ 50.190 $ 7,142.72 $ 8,571.16 $ 8,699.60 $ 85,712.64 $ 102,853.92 $ 104,395.20
Operations Systems Administrator E 39.243$ 47.092$ $ 47.799 $ 6,802.12 $ 8,162.61 $ 8,285.16 $ 81,625.44 $ 97,951.36 $ 99,421.92 Sr. Conservation & Water Budget Analyst Sr. Conservation/Water Use Efficiency Analyst Systems Administrator Wastewater Maintenance Supervisor
Engineering Project Coordinator F 37.376$ 44.852$ $ 45.524 $ 6,478.51 $ 7,774.35 $ 7,890.83 $ 77,742.08 $ 93,292.16 $ 94,689.92 Customer Service Supervisor Lead Water Systems Operator Sr. Construction Inspector Sr. Electrical Controls/Instrumentation Technician Water Systems Operator Analyst
Conservation & Water Budget Analyst G 35.595$ 42.719$ $ 43.359 $ 6,169.80 $ 7,404.63 $ 7,515.56 $ 74,037.60 $ 88,855.52 $ 90,186.72 Conservation/Water Use Efficiency Analyst Engineering Services Supervisor Field Services Foreman - Fleet/Facilities Field Services Foreman - Wells & Pumps Public Information Specialist II Utility Analyst Water Use Efficiency Specialist II
Cross Connection Control Specialist H 33.904$ 40.685$ $ 41.295 $ 5,876.69 $ 7,052.07 $ 7,157.80 $ 70,520.32 $ 84,624.80 $ 85,893.60 Rancho California Water District RCWDEA Non‐Exempt Salary Ranges FY 2016‐2017 Effective July 1, 2016 3.81% Range Movement Hourly Monthly Annual Title Grade MOU Article 7 MOU Article 7 MOU Article 7 Minimum Maximum Provision Minimum Maximum Provision Minimum Maximum Provision Electrical Controls/Instrumentation Technician II GIS Analyst II Operations & Maintenance Technician Purchasing/Warehouse Supervisor Senior Engineering Technician Senior Plant Maintenance Technician Senior Wastewater Plant Operator Senior Water Systems Operator Senior Water Treatment Operator
Construction Inspector II I 32.287$ 38.746$ $ 39.327 $ 5,596.41 $ 6,715.97 $ 6,816.68 $ 67,156.96 $ 80,591.68 $ 81,800.16 Field Services Foreman - Construction Public Information Specialist I
Senior106 Accounting Analyst Senior Administrative Assistant Water Use Efficiency Specialist I
Corrosion Control Technician II J 30.750$ 36.899$ $ 37.452 $ 5,330.00 $ 6,395.83 $ 6,491.68 $ 63,960.00 $ 76,749.92 $ 77,900.16 Cross Connection Control Technician II Engineering Technician II Field Services Foreman - Meter/AMR Field Services Lead - Wells & Pumps Field Services Worker - Mtr Rep/AMR Sys Spec Meter Reading Services Foreman Purchasing Agent II Sr. Contracts Administrator Sr. Mechanic Water Treatment Operator II
GIS Analyst I K 29.287$ 35.145$ $ 35.671 $ 5,076.41 $ 6,091.80 $ 6,182.97 $ 60,916.96 $ 73,101.60 $ 74,195.68 Plant Maintenance Technician II Senior Operations & Maintenance Assistant Wastewater Plant Operator II Water Systems Operator II Well & Pump Technician II
Contracts Administrator II L 27.894$ 33.472$ $ 33.975 $ 4,834.96 $ 5,801.81 $ 5,889.00 $ 58,019.52 $ 69,621.76 $ 70,668.00 Corrosion Control Technician I Rancho California Water District RCWDEA Non‐Exempt Salary Ranges FY 2016‐2017 Effective July 1, 2016 3.81% Range Movement Hourly Monthly Annual Title Grade MOU Article 7 MOU Article 7 MOU Article 7 Minimum Maximum Provision Minimum Maximum Provision Minimum Maximum Provision Electrical Controls/Instrumentation Technician I Lead Field Services Worker - Construction Lead Field Services Worker - Operations Mechanic II Senior Customer Service Rep-Office/Field Senior Wastewater Collection System Technician
Accounting Analyst M 26.559$ 31.869$ $ 32.346 $ 4,603.56 $ 5,523.96 $ 5,606.64 $ 55,242.72 $ 66,287.52 $ 67,279.68 Administrative Assistant II Construction Inspector I Engineering Technician I Field Services Locator II Purchasing Agent I
Senior107 Field Services Worker - Meter/AMR Senior Warehouse Technician
Cross Connection Control Technician I N 25.297$ 30.357$ $ 30.812 $ 4,384.81 $ 5,261.88 $ 5,340.75 $ 52,617.76 $ 63,142.56 $ 64,088.96 Customer Service Rep II - Office/Field Engineering Services Representative II Field Services Worker II - Operations Field Services Worker II-Construction Operations & Maintenance Assistant II Water Treatment Operator I
Administrative Assistant I O 24.095$ 28.912$ $ 29.346 $ 4,176.47 $ 5,011.41 $ 5,086.64 $ 50,117.60 $ 60,136.96 $ 61,039.68 Building & Grounds Worker II Field Services Worker II - Meter/AMR Plant Maintenance Technician I Warehouse Technician II Wastewater Plant Operator I Water Systems Operator I Well & Pump Technician I
Accounting Clerk II P 22.949$ 27.539$ $ 27.951 $ 3,977.83 $ 4,773.43 $ 4,844.84 $ 47,733.92 $ 57,281.12 $ 58,138.08 Mechanic I Operations & Maintenance Assistant I Wastewater Collection System Technician II Rancho California Water District RCWDEA Non‐Exempt Salary Ranges FY 2016‐2017 Effective July 1, 2016 3.81% Range Movement Hourly Monthly Annual Title Grade MOU Article 7 MOU Article 7 MOU Article 7 Minimum Maximum Provision Minimum Maximum Provision Minimum Maximum Provision Customer Service Rep I - Office/Field Q 21.853$ 26.224$ $ 26.618 $ 3,787.85 $ 4,545.49 $ 4,613.79 $ 45,454.24 $ 54,545.92 $ 55,365.44 Field Services Locator I
Building & Grounds Worker I R 20.815$ 24.977$ $ 25.351 $ 3,607.93 $ 4,329.35 $ 4,394.17 $ 43,295.20 $ 51,952.16 $ 52,730.08 Contracts Administrator I Engineering Aide Engineering Services Representative I Field Services Worker I - Construction Field Services Worker I - Operations Office Assistant II
Field Services Worker I - Meter/AMR S 19.821$ 23.786$ $ 24.142 $ 3,435.64 $ 4,122.91 $ 4,184.61 $ 41,227.68 $ 49,474.88 $ 50,215.36 Warehouse Technician I
Wastewater108 Collection System Technician I Wastewater Plant Operator-In-Training (OIT)
Accounting Clerk I T 18.879$ 22.652$ $ 22.992 $ 3,272.36 $ 3,926.35 $ 3,985.28 $ 39,268.32 $ 47,116.16 $ 47,823.36
Field Services Worker I - AMR U 17.984$ 21.579$ $ 21.902 $ 3,117.23 $ 3,740.36 $ 3,796.35 $ 37,406.72 $ 44,884.32 $ 45,556.16 Office Assistant I
Vacant V 17.127$ 20.546$ $ 20.854 $ 2,968.68 $ 3,561.31 $ 3,614.69 $ 35,624.16 $ 42,735.68 $ 43,376.32 Note: Minimum to Maximum is a 20% Increase. Maximum reflects 3% "Salary Range Buffer" for Topped Out Employees agreed to in Side Letter of MOU's Section 7. Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Divisional Plans A key element of the District’s operating budget is developing departmental programs that are in support of the District’s mission and strategic plan. The Divisional Plans represent the link that transmits the strategic planning into tactical action. This section presents these departmental programs using the following format:
. Division Mission Statement . Divisional Organizational Chart . Divisional Personnel Requirements . Critical Success Factors for each Division . Narrative statement of the function of each Department . Three year comparison of accomplishments for each Department . Key objectives of the Department . Performance Measurement Indicators of each Department’s objectives
District Organizational Chart
109 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Personnel Staffing Levels
FULL-TIME EQUIVALENT POSITIONS BY DIVISION:
Actual Budget Budget Percent FY 2014-15 FY 2015-16 FY 2016-17 Change Administration Division 19 17 33 94.1% Finance Division 29 29 13 -55.2% Engineering Division 22 20 20 0.0% Operations Division 39 43 42 -2.3% Field Services Division 35 33 31 -6.1% Total 144 142 139 -2.1%
TOTAL PERSONNEL BY CLASSIFICATION:
Actual Actual Budget Projected FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 General Manager 1 1 1 1 Assistant General Manager 1 1 1 1 Directors 3 4 3 3 Management 11 10 9 9 Supervisory 20 19 21 21 Professional 17 21 17 17 Administrative 28 25 26 26 Technical 35 34 35 35 General Labor 28 27 26 26 Total 144 142 139 139
For 2016-2017, the budget proposes to fund 139 FTE positions. The District re-organized staffing by un-filling five positions and creating four new positions as well as re-aligning positions from the Finance Division into the Administration Division for the 2016-2017 Budget. The positions unfilled are an Engineering Service Rep in the Engineering Division; a Senior Wastewater Plant Operator, a Building & Grounds Worker, a Field Services Manager and a Director of Operations in the Operations Division; and a Senior Water Resource Planner in Administration. Newly created positions are a Public Information Specialist in the Administration Division, two Field Supervisors in the Operations Division and an Intern in the Engineering Division. Staffing changes within the organization were necessary to address changing resource needs and to align appropriate staffing levels for efficiency and effectively accomplish the District’s strategic goals.
Since 1991-92, installed water meters have grown by 180.5% to over 44,291 installed meters, while employee positions have increased by 9.4%.
Ratio of Employees to Accounts Last 10 Fiscal Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 No. of Employees 141 144.5 148.5 149.5 148.5 147 146 144 142 139 No. of Accounts 41,986 42,260 42,630 42,753 42,958 43,126 43,488 43,975 44,043 44,291 Ratio .34% .34% .35% .35% .35% .34% .34% .33% .32% .31%
110 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Fund Structure The District accounts for its water and wastewater operations activities as enterprise funds. These activities closely resemble those of private business enterprises where services are provided on a continuous basis and are substantially financed by revenues derived from user charges.
A number of District divisions perform functions supporting both water enterprise funds and wastewater enterprise funds. The following chart shows the relationship between the District’s divisions and the enterprise funds that are charged for their activities.
Relationship Between Divisions, Departments and Funds
Rancho Santa Rosa Wastewater Division Department Enterprise Fund Enterprise Fund Enterprise Fund
Administration Board Administration X X X Public and Legislative Relations/Outreach Activities X X X Human Resources X X X Risk Transfer, Liability and Property Insurance X X X Administrative Services X X X Customer Service X X X Information Technology X X X Geographical Information Systems X X X Water Resources Planner X X Conservation and Water Budget Analyst X X Water Use Efficiency X X Finance Finance Administration X X X Accounting X X X Budgetary X X X Treasury X X X Real Estate Management X X X Grant Acquisition and Management X X X Purchasing X X X Warehouse X X X Engineering Engineering Administration X X X Water Resources/Engineering Planning X X X Engineering Design X X X Engineering Services X X X Construction Contracts X X X Operations Water Operations X X Corrosion Control X X Electrical Services X X X Water Quality X X Pumps and Wells Maintenance X X X Asset Management X X X Wastewater Treatment X Field Services Field Services X X X Meter Maintenance X X Mechanic Maintenance X X
111 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Administration Division MISSION STATEMENT To provide exceptional, timely, and professional administrative support toward the Rancho California Water District’s mission, vision, and values, including specific administration of District records, human resources and safety, board administration, customer service and billing, information technology, geographic information systems and water use efficiency.
PERSONNEL REQUIREMENTS (FTE)
Actual Actual Budget Projected FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 General Manager 1 1 1 1 Asst. General Manager 1 1 1 1 District Secretary 1 1 1 1 Administrative Assistant 2 1 1 1 Administrative Services Supervisor 1 1 1 1 Office Assistant 4 3 3 3 Public Information Officer 1 1 1 1 Public Information Specialist 0 1 1 1 Human Resources Manager 1 1 1 1 Human Resource Analyst 1 1 2 2 Administrative Assistant H/R 1 1 0 0 Safety/Risk Officer 1 1 1 1 Director of Administration 0 1 1 1 Customer Service Supervisor 0 1 1 1 Utility Analyst 0 1 1 1 Customer Service Rep 0 9 9 9 Resource Planner 2 2 1 1 Planning Intern 1 1 0 0 Conservation Water Budget Analyst 1 1 1 1 Water Use Efficiency Specialist 0 0 1 1 Data Center Operations Supervisor 0 1 1 1 Systems Administrator 0 1 1 1 ERP Business Analyst 0 1 1 1 GIS Coordinator 0 1 1 1 Total 19 19 33 33
DIVISION SUMMARY Actual Budget Budget Category FY 2014-15 FY 2015-16 FY 2016-17 Labor $2,459,762 $1,887,180 $3,271,793 Materials 126,007 81,500 86,450 Outside Services* 8,027,071 8,363,023 9,942,059 Funded Staffing Level 19 19 33 * Outside Services includes fringe benefits expense.
112 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
CRITICAL SUCCESS FACTORS The Administration Division has identified the following objectives it considers critical to the overall success of the Division and the District for fiscal year 2016-2017: . Provide administrative support to the General Manager, Assistant General Managers, and the Board of Directors. . Provide technical support and compliance solutions that protect the District from legal, financial and safety exposures. . Provide Human Resources, safety and risk management and support to employees of the District. . Provide administrative support to the District’s internal and external customers. . Coordinate with other local, regional, and state agencies relative to the implementation of the District’s goals and positions as established by the Board of Directors and consistent with the Strategic Plan. . Participate in State and National conferences to ensure that the District is positioned properly with the statutes and programs of State and National agencies with water supply and wastewater oversight.
113 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Board Administration MISSION STATEMENT To provide specific administration of the Board of Directors business, legal services, and election processes. This includes the preparation and timely distribution of Board and Committee meeting packages, coordination of industry travel and event arrangements, maintenance of all official documents, and timely development and filing of all noticing requirements in accordance with the Ralph M. Brown Act. ACCOMPLISHMENTS FOR FISCAL YEAR 2015-16 . Prepared and/or assisted with the completion of approximately 54 Board and Committee meeting minutes, and 29 Board and Planning and Administration Committee meeting packages; . Ensured all meeting agendas, notices and related material were in compliance with the Ralph M. Brown Act; . Arranged and scheduled numerous meetings for the General Manager, Assistant General Manager, and Board of Directors; . Provided updates to Part I (Administration of the District) of the adopted Administrative Code; and . Provided support and assistance to the County of Riverside for the completion of the 2015 Board of Directors General Election.
STRATEGIC OBJECTIVE FISCAL YEAR 2016-17 INITIATIVES GP5.S1.O1 Provide a timely response to public requests. Timely prepare and complete all Board, and Planning and Administration Committee meeting packages for distribution. Assure timely preparations and dispersion of the Finance and Audit and Engineering and Operations Committee meeting packages. GP5.S4.O1 Transcribe and generate for approval Board, and Planning and Administration Committee meeting minutes, and secure completion of the minutes of the Finance and Audit, and Engineering and Operations Committee meetings. Provide administrative support to the General Manager, Assistant General Manager, and Board of Directors. Administer agendas and notices for said meetings to comply with the Ralph M. Brown
Act.
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Provide assistance to the County of 2015 Board of Directors General Riverside for the completion of the n/a Met n/a Election 2013 Board of Directors Election
Post agendas and notices in Prepare and post meeting agendas accordance with the Ralph M. 100% 100% 100% and notices Brown Act
Timely prepare and complete all Provide completed meeting Board of Directors, and Planning and packages to the Board of Directors 100% 100% 100% Administration Committee meeting and staff a minimum of four days agendas and packages before the subject meeting
Generate Board, and Planning and Complete minutes for review and Administration Committee meeting approval by the Board within 30 97% 100% 100% minutes days of the subject meeting
Maintain updates for Part I of the Update the Administrative Code as 100% 100% 100% Administrative Code changes become effective
115 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Public Affairs, Education, and Legislative Relations/Outreach Activities ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Reached over 13,000 students through the elementary theater programs, elementary curriculum programs, poster contest, write-off contest, menu contest, and various water education material distribution; . Developed a pilot education program at Vail Lake focused on the importance of groundwater and groundwater recharge; . Chose 5 menu contest winners and the menus are featured in 5 local restaurants throughout the entire year; . Developed a complex outreach program focused on the drought and the changes to customers water budgets; . Participated in over 50 community events to provide information to our customers; . Developed a stakeholder quarterly event , Water Talk bringing in speakers on important topics; . Developed many new customer friendly videos educating our customers; . Partnered with Eastern Municipal Water District on a drought outreach campaign; . Implemented an e-newsletter for our customers; . Developed a phone application for customers to report water waste; . Provided outreach for multiple emergency construction projects; . Developed Legislative Policy Principles for the District; . Updated Legislative Priorities for the District; . Strengthened relationships with our legislative representatives and local stakeholders; . Received the American Water Works Association’s Public Outreach award and was a finalist for the Association of California Water Agency’s Best in Blue Communication award; . Held an education recognition night for all the education programs that RCWD offers; . Provided targeted outreach to community organizations; . Developed water use efficiency outreach materials to community organizations; . Tracked state legislation and commented on proposed legislation when appropriate; . Communicated to customers through customer newsletters, multiple bill inserts, email blasts, press releases, events, and social media; and . Continued to utilize social media as a key outreach tool, especially in emergencies.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP5.S1.O7 Developed targeted outreach pieces for specific groups. GP5.S1.O8 Develop new customer friendly videos for the District website. Continue to implement the outreach plan on the updated Water Shortage Contingency GP2.S1.O2 Plan. GP5.S1.O7 Continue RCWD’s communication outreach including multiple speaking engagements, social media updates, and event participation. GP5.S1.O3 Maintain and expand federal and state legislative partnerships. Improve District wide external communication by providing communication training to RCWD staff. Improve internal communication by providing monthly updates to all RCWD staff on major RCWD project initiatives. GP4.S3.02-4 Continue to implement all pre-K through high school water education programs. Implement a Vail Lake education program. Create partnerships with local agencies on programs and initiatives. Develop updated legislative packets for local legislators about key RCWD projects
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Target different group leaders to discuss major Developed Conduct Targeted Outreach to water issues (I.E. Rotaries, Targeted Ongoing Ongoing Specific Groups Chambers, Educators, Pieces Councils, etc.)
Participate in community Conduct Water Use events and communicate On Track Ongoing Ongoing Efficiency Outreach with customers program that are offered
Work with legislative staff to communicate language Track State Legislation Ongoing Ongoing Ongoing changes to legislation affecting the District
Communicate with Conduct Ongoing customers through a variety Communication with of means (email blasts, Ongoing Ongoing Ongoing Customers and the mailers, social media, etc.) Community monthly
Develop and implement a Implement a Vail Lake water education program at n/a n/a Develop program Education Program Vail Lake focused on groundwater.
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ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Develop customer friendly Develop new customer videos for our website that n/a n/a Develop videos friendly videos for website will educate our customers
Develop packets that focus Continue to on key RCWD initiatives to update and Develop updated legislative share with legislators for n/a n/a distribute packets for local legislators support and financial packets every assistance year
Develop a communication Implement Develop a Communications plan that goes through the Completed communication Plan to coincide with the Developed communication steps for Plan August strategies as Water Shortage Contingency Plan each step of the Water 2014 stages change Plan Shortage Contingency Plan and plan changes
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Human Resources MISSION STATEMENT Our mission is to maximize the potential of RCWD’s greatest assets – its employees. We are committed to recruit, develop, reward, retain, and protect the physical and human assets of RCWD. Our vision as human resource and safety/risk management professionals is to embrace a change and the opportunity it brings. We will accomplish this by providing services, which promote a work environment that is characterized by fair treatment of staff, open communication, personal accountability, trust, and mutual respect.
CRITICAL SUCCESS FACTORS Human Resources have identified the following objectives it considers critical to the overall success of the Division and the District for fiscal year 2016-2017: . Implement succession-planning efforts to transfer knowledge of employees in critical positions as the workforce ages and readies for retirement. . Develop a mentorship program to provide critical guidance and assistance in the career development of staff through experience from other employees. . Update Districts Certification Chart and Job Descriptions and District policies in collaborative effort with employer associations, Human Resources, supervisors, and department managers. . Continue to provide leadership training District-wide to assist with effective communication, develop leadership skills, and collaboration throughout the workforce. . Develop strategies to attract and retain employees. . Provide training to supervisors to help address employee issues. . Update all insurance schedules annually. . Collaborate with the Teamsters Local 911, the RCWD Employee Association, and the RCWD Management Association to provide effective labor relations. . Maintain District Respiratory Program. . Update Material Safety Data Sheets on a regular basis at HQ and SRWRF. . Conduct Annual Joint Agency Emergency Response drill at the SRWRF. . Coordinate site visits from JPIA and implement any recommendation within a 45-day turnaround period. . Maintain safe working environment by achieving a TRR of 6.3 for calendar year 2015. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Renewed health insurance rate plans with a 2% cost savings effective January 1, 2016; . Conducted an accelerated three month Leadership Academy training module for District managers, supervisors, and professional staff; . Established effective working relationship with MPCEA and Teamsters Local 911 in conjunction with RCWD employee association labor relations; . Successfully recruited qualified staff and conducted 15 recruitments since 7/1/15, which included six new employees and none promotions. In addition, also placed 17 temporary hires;
119 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
. Implemented a PRIDE Program so employees may recognize other employees who demonstrate professionalism, responsibility, integrity, dedication, and equality in the workplace; . Conducted a successful District health and wellness fair; . Conducted a successful annual United Way charitable campaign and continue quarterly blood drives; . Active Committee participation on Water Utilities Human Resources Committee; and . Continue team-building efforts within work groups.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE
GP3.S12.O1 Attract, retain, and develop quality staff. GP3.S11.O1 Promote an open and professional work environment throughout the organization.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Work with District management team to identify Tie objective to annual strategic Ongoing Ongoing Ongoing future staffing needs planning/budgeting process projecting out 3-5 years
Continue update certification Collaborative effort w/RCWD Ongoing Ongoing Ongoing Chart/Job descriptions EA/HR/supervisors/managers
Successfully negotiate MOU Collaborative effort with RCWD June 16- Complete Complete for FY 2017/2018 Management Team/RCWD EA 17
Identify critical positions to capture Succession Planning Ongoing Ongoing Ongoing knowledge prior to retirements
Conduct Leadership Academy Program for July Leadership Training Met July 2015 first time supervisors 2016
Update Employee Policy and Upon changes in District processes and Ongoing Ongoing Ongoing Procedure Manual as needed procedures to evaluate and revise form
Create incentives for employees to Develop and Implement incorporate healthy living addressing body, Ongoing Ongoing Ongoing Wellness Program mind, and spirit
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Safety Risk Transfer, Liability, and Property Insurance The Safety Risk Office is responsible for overseeing and administrating the District’s key business and asset safeguards, which include OSHA regulatory compliance, risk transfer and Liability and Property Insurance management. Jointly, these functions provide measures that protect the District from legal, financial, and safety exposures. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Conducted Advanced Incident Command System (ICS) and Emergency Operations Center (EOC) training for District staff with Riverside County Fire Department, City of Temecula Fire Department, and California; . Oversee MPS Security Services for Vail Lake and Sundance Properties; . Member of the Vail Lake/Sundance Property Transition Team; . Organized 2015 RCWD Joint Agency Emergency Response Drill required for compliance with CCR Title 19 Public Safety; . Participated in the District and Murrieta Fire Department fifth annual Joint Agency Rescue Drill; . Participated in the Southwest Riverside County Emergency Preparedness Committee Annual Tabletop Emergency Response exercise; . Continued active Committee participation on Southwest Riverside County Emergency Preparedness Committee; . Conducted CPR, AED, and First Aid training for District employees; . Continued as JPIA liaison; . Maintained vendor/lease certificates of insurance coverage and risk transfer; . Successfully updated all insurance schedules; . Maintained a safe working environment – 7.4 TRR goal – estimated final 2015 TT 2.0; . Conducted annual District Confined Space Rescue Training Program; . Updated 2015 Target Safety training schedules and database; . Conducted Asbestos Safety refresher training as required by state regulations; and . Developed, as required, new safety and environmental policy and procedures.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Conduct Annual joint agency emergency response drill at the SRWRF – CCR Title 19 Compliance. GP3.S1.O1 Conduct RCWD Emergency Operations Plan training and/or exercise as appropriate. GP3.S1.O3 Implement lessons learned from the emergency response exercise. Review/acquire tools/equipment to augment the Emergency Operations Center (EOC).
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Annual requirement - DHS – NIMS – FEMA compliance & CCR Title 19 Cal ARP public safety compliance. Plan for & Conduct Annual Joint Agency participate in all-hazards Emergency Response Drill at 100% 100% June 2016 exercise that involves SRWRF emergency management, response personnel from multiple disciplines &/or multiple jurisdictions Implement lessons learned Develop action items and from the emergency response recommendations from exercise lessons learned from September 100% 100% emergency response exercises 2016 to improve overall District emergency response Update all insurance December Maintain vendor risk transfer 100% 100% schedules 2016 Maintain District Respiratory Complete medical and fit test 100% 100% July 2016 Program approval Coordinate site visits and JPIA Liaison implement recommendation’s 100% 100% Ongoing - 45 Day Turnaround
Maintain a Safe Working Supervisor/manager round 96% - Est. 72% 6.5 Environment table –TRR Goal (6.5) 2.0
DHS-NIMS-FEMA Conduct RCWD Emergency compliance. Advanced Operations Plan training Incident Command System 100% 100% Nov. 2016 and/or exercise as appropriate and Emergency Operations Ctr. Training.
122 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Administrative Services MISSION STATEMENT To provide a full array of quality administrative support for all departments of the District, including but not limited to mail services, event arrangements, setting up for District-related meetings, telephone and reception support, and oversight of the centralized paper and electronic recordkeeping system, as well as to provide quality customer service to all internal and external customers. ACCOMPLISHMENTS FOR FISCAL YEAR 2015-16 . Provided administrative support to all divisions within the District, including copying and delivering all Board and Committee packages, general copying, typing and clerical requests, special projects, research and retrieval of records, and stuffing envelopes for New Customer Letters, and Annual Backflow Test Forms; . Completion of converting archived documents to electronic storage by out sourcing (Cash Receipts 2000-2013) ; . Completion of converting archived documents to electronic storage by staff (1998 Job Cost Files, 2014 Completed Capital Projects, and Terminated Employee Files); . Provided set-up for approximately 336 meetings; . Successfully planned and organized the District’s Annual Employee Appreciation Luncheon and the District’s Annual Employee Recognition Banquet; and . Shredding and recycling program successfully recycling nearly 9,000 pounds of paper.
STRATEGIC OBJECTIVE FISCAL YEAR 2016-17 INITIATIVES
Ensure that regular work duties are completed in a timely manner with very few errors
Provide administrative support to all Divisions within the District, including copying and assembly of Board and Committee packages, mail services, general copying; typing and clerical requests; set-up and clean-up for District related meetings, including requests for GP3.S10.O11 breakfasts and luncheons; telephone and receptionist support and stuffing envelopes for New Customer Letters, and Annual Backflow Test Forms.
Continue with prepping, scanning, or indexing of new documents, and/or converting archived documents to electronic storage three days per week.
Continue to destroy records that have reached their legal required retention period.
123 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Timely answering of all incoming Answer incoming calls within 100% 100% 100% calls three rings
Accurately open and deliver the Open, sort, and distribute daily incoming mail prior to the 100% 100% 100% incoming mail afternoon in-house mail delivery
Copy and prepare documents for outgoing mail, ensuring the Timely process outgoing mail correct address and postage is 100% 100% 100% affixed and ready for postal pick-up by 4:00 p.m.
Provide timely administrative and Complete all support requests 100% 100% 100% clerical support prior to deadline
Each Office Assistant prep, scan, or index new documents, Electronic storage of documents and/or convert archived 98% 95% 85% documents to electronic storage three days a week
Scan, index and e-mail incoming Complete by end of each 96% 95% 98% correspondence to staff business day
Scan, index and e-mail outgoing Complete by end of each 99% 98% 98% correspondence to staff business day
124 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Customer Service Customer Service is responsible for the maintenance and use of an efficient and accurate utility billing system, which provides for the timely collection of the District’s water and sewer service revenues. Equally important is providing first class service to customers over the phone and in person at our District office. Customer Service is also responsible for the collection of meter read data to help ensure that all customers are billed timely and accurately. This function is also responsible for daily meter services such as turning on and off meters, placing door hangers, and responding to customer requests. All activities within the Customer Service department are performed emphasizing a “customer comes first” philosophy. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Continued successful operations of the Cayenta Customer Information System; . Utilization of the Cayenta Customer Information System to improve interdepartmental communications and streamline processes; . Utilizing the Mobile Service Order System for accuracy and communications; . Successful utilization of the Itron Fixed Network System for reading accuracy; leak indicators, and customer assistance; . Successfully implemented mandatory Drought billing structure and rate changes; . Provided a Drought “MyWaterTracker” application for customers to assist in their budget understanding and conservation; . Answered average of over 9,100 customer calls per month; and . Provided job specific knowledge training for customer service staff.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Continue to develop additional processes and resources from Cayenta to streamline GP3.S10.O3 production and continue the growth and accuracy of the system. Continue to reduce the percentage of collection agency write-off amounts. GP3.S12.O6 Continue to provide job specific training for customer service staff.
GP4.S1.O14 Explore additional opportunities in Cayenta to utilize interdepartmental communications. GP3.S10.O3 Make AMR fixed network meter read data available to customers online. GP4.S2.O1 Utilize the Mobile Service Order System to create the highest quality of accuracy. GP5.S2.O1 Explore additional options for customer correspondence interactions.
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Timely billing of customer Bills sent on Wednesday 91% 75% 75% accounts
Timely response to customer Average time to answer incoming 52.5 Less than Less than calls phone calls Seconds 60 Seconds 60 Seconds
Timely response to customer Less than Less than Number of abandoned calls 4.3% phone calls 5% 5%
Outstanding receivables over 60 Collection of accounts receivable 4.3% 4% 4% days
Efficient and alternative payment Customers utilizing some form of 57% 50% 50% options electric payment
Responding to customer service Complete request in one day 100% 98.5% 98.5% request
Timely completion of door Complete same day 100% 98% 98% hanger and delinquent shut-offs
126 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Information Technology Information Systems is responsible for maintaining a reliable and capable District-wide Local Area Network (LAN) that allows for effective and efficient integration of computer technologies into the daily business practices of the District. This IT function is also responsible for managing, maintaining, and administering the District’s key servers, including: . Financial Information System (FIS) . Geographic Information System (GIS) . Microsoft Mail/Exchange . Imaging System . SAN Storage System . Disaster Recovery/Backup/Business Continuity System . Network Firewall/Security/Content Filter System . Web/E-commerce/FTP Servers . Telecommunications Servers . VoIP Phone System . Interactive Voice Response and Automated Call Distribution Systems . Maintain Datacenter Facility (Headquarters) . Maintain Backup Datacenter Facility (Disaster Recovery) . Nine Intermediate Distribution Frames (IDF) . Two Main Distribution Frames (MDF) . Two Extension Networks . Multiple Internal Wireless Networks . External Wireless Mesh Networks ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Replaced unsupported phone system with new VolP ShoreTel system; . Established relationship with Quick Ship DR service vendor; . Upgraded all SQL servers to SQL 2014 and added one more server to cluster; . Upgraded all internal District website capabilities; . Responded to and resolved over 1,500+ Pipeline generated help desk tickets; . Processed over 5 million email and blocked 1.5 million SPAM emails; and . Blocked over 2 billion intrusion attempts and over 2 billion viruses.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP3.S1.O5 Establish quick ship Disaster Recovery service relationship to enhance DR position. GP5.S2.O3 Replace aging unsupported phone system with new user-friendly system. GP3.S10.O15 Increase utilization of Virtual Infrastructure and storage that is more efficient.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 53 Number of hours down time 53 hours Minutes Reliable and dependable network 0 performance during business hours annually annually (99.99%) Timely resolution to user Resolve problems within 24 hours 99% 80% 75% problems Percentage of favorable responses Maintain internal customer to internal customer satisfaction 91% 90% 80% service survey
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Geographical Information Systems Geographical Information Systems (GIS) is responsible for providing enhanced access to high quality geographic information that increases the effectiveness of business operations through information and process integration crossing organization units in pursuit of better public service. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Assisted the Planning Department with mapping and analysis requests for various projects; . Maintained GIS software, applications and customer tools; . Maintained digital map to support Customer Service Dept. in assisting customers with identifying District serving their property address; . Continued to assist the Operations and Maintenance with AMR project by providing maps and updating ArcGIS Server web application to track progress; . Continued to produced maps and provide technical support for District personnel; . Continued with the GIS-based as-built update: use field verification data to flag as-built drawings to be updated (information to be used by Eng. Dept. to update records drawings); . Provided Geo-Viewer support and training throughout the District; . Continued to provide assistance for GPS-based Corrosion Control Program – undergoing in Operations and Maintenance department; . Continued to assist Operations and Maintenance with the Valve Tie Mapping Program; . Updated Geo-Viewer for desktops and laptops allowing access of GIS information in the field; . Continued support for main ArcGIS Server web application (RCWD GIS Viewer Online, Footprint Editor); . Continued support for CMMS mobile data collection workflow ; . Provided GIS assistance for implementing a GIS-based CMMS field solution; . Maintained GIS database replication solution (water, sewer, county, address); . Maintained water, sewer, address and street database; . Continued effort to cleanup GIS Meter location database and improve integration with CIS; . Assisted Operations and Maintenance Dept. with the Strix Network implementation; . Assisted with reviewing and calculating annual tax charges; . Completed implementation of new GIS viewer; . Assisted Planning Dept. with AG re-certification project; . Assisted with CIS implementation: mapping component design and integration for service number to APN association, County Property Information Viewer/Editor; . Implemented mobile solution for AG certification; . Provided assistance with RCWD Real Estate Management; and . Designed and implemented solution for water books conversion to GIS.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Continue to operate, develop, and maintain the District’s Geographic Information System including updated and adding new data sources. Continue to assist in the integration of District data sources through participation in the IT Steering Committee, Web Development Sub-Team, IT Training Sub-Team, ERP Sub- Team, and Needs Assessment Implementation Team. Improve GIS information dissemination throughout the District. Promote integration of GIS with other business systems (ERP/CMMS/CIS). GP3.S10.O4 Continue to assist with tax roll calculations. Reconcile meter database using CIS data and GPS information. Continue to provide support for improving spatial component of GIS data using sub- meter & sub-foot GPS units. Complete conversion of water books and contracts to GIS. Create Geocortex-based solution for accessing water fees and contracts. Continue efforts to realign GIS facilities data (increase accuracy) to better support field operations and data analysis.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Respond to customer service Maps produced within 48 hours of 100% 90% 90% requests for maps request
Reliable GIS system software Resolve problems within 24 hours of 100% 90% 90% performance notification
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Water Use Efficiency Activities MISSION STATEMENT The mission of the Water Use Efficiency Department is to achieve measurable water conservation, efficiency, and sustainability through the implementation of core best management practices and the exploration of innovative programs and methodologies. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Helped customers navigate the changes to the tiered rate structure resulting from the State Water Board’s Emergency Regulations; . Utilized results from the Blueprint for Water Use Efficiency for exploring ideas for new progress; . Maximized funding opportunities through WMWD and EMWD Agency Funded Programs; . Initiated a voucher program for commercial urinal flush valves and recirculating hot water heater pumps ; . Continued partnership on Free Sprinkler Nozzle programs; . Provided education outreach to HOA groups, through Saturday neighborhood onsite workshops; . Increased the number of Residential Water Use Efficiency Evaluations conducted by targeting high water consumption customers ; . Created a Virtual Technical Assistance Center for Agricultural Customers (i.e. a new Ag website); . Implemented a Vineyard Demonstration Project focusing on Regulated Deficit Irrigation for wine grape vineyards; . Re-distributed soil monitoring systems installed at avocado growing operations as part of Enhanced Ag Efficiency Program to growers who could better utilize them; . Provided educational Water Use Efficiency Workshops to property management companies, commercial, industrial, and institutional business in the Temecula region to increase water awareness in their industry; and . Completed implementation of recycled water retrofits for three HOA common areas.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE(S) Ensure ongoing compliance with SBX7-7 through implementation of Critical and Conditional Efficient Water Management Practices for agriculture. Ensure ongoing compliance with SBX7-7 through implementation of Best Management Practices for M&I use. Assist with achieving compliance with the State’s Emergency Regulations through implementation of effective conservation programs. Implement Water Use Efficiency Programs focusing on providing technical assistance and financial incentives to District customers. Facilitate the implementation of research and demonstration projects that encourage the adoption of best management practices and new water use efficiency technologies among the District’s customers. Implement Programs that encourage the conversion of potable irrigation systems at commercial, institutional and HOA owned properties to recycled water irrigation systems. Explore methodologies for allocating water to commercial customers that encourages GP4.S1.O1-14 efficiency and does not hinder the growth of local business. Conduct water use efficiency evaluations for customers of all classes. Continue irrigation system auditing/financial incentive program for Ag customers. Continue to enhance the Virtual Technical Assistance Center for agricultural customers. Continue to develop RCWD’s Smart Water Solution Rebate webpage in order to provide a streamlined approach for customers to participate in rebate programs. Continue to provide educational outreach to customers of all classes. Continue to implement the results of the District’s Blueprint for Water Use Efficiency. Track compliance with 20% reduction in urban per capital use by 2020. Maintain a partnership with the cities of Temecula and Murrieta – Pursue sustainability initiatives where practical including recycled water retrofit projects on municipal properties with the use of available grant funding. Participate in regional water issues through attendance and participation in regional water meetings, groups, committees and forums. Maintain collaborative relationship with WMWD and EMWD through participation in Water Use Advisory and other Committee meetings.
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Develop and Implement Develop & Conservation & Water Use Implement Efficiency Program for programs as per n/a n/a 100% coverage Residential, Dedicated RCWD coverage Landscape & multi-family goals Customers Develop & Develop and Implement Implement Conservation & Water Use programs as per n/a n/a 100% coverage Efficiency programs for RCWD coverage Agricultural Customers goals Develop & Develop and Implement Implement Conservation & Water Use programs as per n/a n/a 100% coverage Efficiency programs for Commercial Customers RCWD coverage goals
133 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Finance Division MISSION STATEMENT To provide innovative, proactive, and strategic financial direction and support to Rancho California Water District’s Board of Directors, management and employees in an effort to achieve low, stable water and wastewater rates and charges. We are committed to maintaining the District’s strong financial position, efficiently managing the District’s financial resources, and ensuring that adequate financial controls are in place and monitored to communicate and report accurate financial results and to protect the District’s assets. The Finance Division will accomplish this mission while maintaining a commitment to providing quality customer service. The Finance Division provides the accounting, auditing, investing and debt management functions required, showing clearly and accurately at all times, the financial status of the District.
PERSONNEL REQUIREMENTS (FTE) ACTUAL ACTUAL BUDGET PROJECTED FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 CFO/Treasurer 1 0 0 0 Director of Finance 0 1 1 1 Sr. Administrative Assistant 1 1 1 1 Finance Analyst 1 1 1 1 Budget/Debt Administrator 1 1 1 1 Accounting Manager 1 1 1 1 Accountant 1 1 2 2 Sr. Accounting Analyst 2 3 2 2 Accounting Clerk 2 1 1 1 Warehouse Technician 1 0 0 0 Purchasing Agent 2 2 2 2 Purchasing Warehouse Supervisor 0 1 1 1 IT /Customer Service Manager 1 1 0 0 Customer Service Supervisor 1 1 0 0 Customer Service Analyst 1 1 0 0 Customer Service Rep 9 9 0 0 Data Center Operations Supv. 1 1 0 0 Systems Administrator 1 1 0 0 ERP Administrator 1 1 0 0 GIS Coordinator 1 1 0 0 Total 30 29 13 13
DIVISION SUMMARY Actual Budget Budget Category FY 2014-15 FY 2015-16 FY 2016-17 Labor $2,632,730 $2,694,840 $1,237,83740 Materials 92,966 115,075 65,586 Outside Services 1,120,364 2,014,008 645,145 Funded Staffing Level 30 29 13
134 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
CRITICAL SUCCESS FACTORS The Finance Division has identified the following objectives it considers critical to the overall success of the Division and the District for fiscal year 2016-2017: . Maintain or improve the District’s bond rating to ensure lowest overall borrowing cost for future bond issuance. . Complete the Operating and Non-Operating Budgets for the 2016-2017 fiscal year with complete committee review and recommendation at the April 14, 2016 Board of Directors workshop and adoption at the June 9, 2016 public hearing with all rates, fees and charges taking effect July 1, 2016. . Complete all internal financial records for the year ended June 30, 2016 by July 31, 2016 to allow the District’s Certified Public Accountants to perform and complete the independent audit of the District and its taxing entities for presentation to the Board of Directors no later than its October 2016 Board Meeting. The results of the audit must contain an unqualified opinion, have no reportable conditions, and limit management letter comments to immaterial items. . Complete the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2016 with Committee review in November 2016. The quality of the report should be of a standard that it receives the Certificate of Achievement awarded by the Government Finance Officers Association.
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Accounting Accounting is responsible for creating and maintaining a reporting structure to accurately and expeditiously communicate pertinent financial data to its customers. Accounting is also responsible for ensuring efficient use and protection of District assets. This area also maintains, monitors, and enforces a system of internal controls. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Completed Comprehensive Annual Financial Report and received Government Finance Officers Association (GFOA) award for excellence in financial reporting; . Completed Audit of 2014-2015 financial records with an unqualified opinion; . Completed actuarial report for the Rancho California Water District’s Retirement Medical Benefits Plan; . Participated in formation of the JPA and account setup for the Santa Rosa Regional Resources Authority; . Implemented new GASB requirements on financial reporting; . Implemented new informational reporting of employee medical benefits per the Affordable Care Act requirements; and . Revised and implemented Stand-by payroll reporting.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Complete successful audits of grant programs from both federal requirements and issuing GP3.S4.O2 agencies. Provide timely and accurate financial reporting, including the CAFR GP3.S10.O1 Obtain unqualified audit opinion. Complete successful and timely audit with new independent auditors. GP3.S12.O6 Continue cross training of key tasks and functions within the accounting department. Perform monthly team building exercises with accounting department staff.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Timely closing of fiscal year Approval of annual audit September September Met accounting records report BOD Mtg. BOD Mtg. Maintain accurate accounting Number of Significant records in accordance w/Gov. None None None external audit findings Acctg. Standards Timely payment of vendor Unpaid invoices over 30 days 0% Less than 5% Less than 5% invoices – Less than 5% Implement new GASB Any new GASB to be Met August 2016 August 2017 Pronouncements. included in CAFR for 2015
136 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Budgetary Budgetary is responsible for overseeing and facilitating the District-wide planning, development, and compliance to an approved operating and non-operating budget plan. Additionally, this area is responsible for the rate-setting process and for monitoring departmental performances throughout the year. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Received the Government Finance Officers Association Distinguished Budget Award for 2015- 2016; . Completed operating and non-operating budgets with rates effective for July 1; . Updated Long Range Financial Plan – reviewed Capital Improvements, Capital Replacements, Planned Correctives, and Acquisition Outlays for funding availability; . Revised and updated current Fee for Service Schedule; . Reviewed Divisional Accounting Requirements; and . Implemented Effective Utility Management concepts.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Achieve cash reserve and revenue levels as identified in cash reserve policy. GP3.S5.O6 Investigate reserve and revenue protection strategies. GP3.S5.O9 Update Long Range Financial Plan
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Timely completion and Actual effective date of new Goal Met July 1 July 1 approval of annual budget rates
Review and monitor Management budget review Goal Met 100% 100% operating results vs. budgets meetings held quarterly
Successfully conduct Budget Conduct workshop on time Goal Met 100% 100% Workshop
Completion and approval of Update Fee for Service study Completed March 2016 March 2017 results
137 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Treasury The treasury function is responsible for assuring that all investments of the District funds are made within the Board of Directors’ adopted investment policy, while at all times adhering to the Prudent Investor Standard. The primary objective, in priority order, of investment activities shall be safety, liquidity, and return. Treasury is also responsible for managing the District’s debt. The primary debt objectives are to minimize long term, debt borrowing cost and risk, and to manage and utilize the bonding capacity of the District so that future capital facility requirements can be funded as needed. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Achieved re-affirmed credit ratings; . Updated the Retirement Medical Benefit Trust Investment Policy; and . Initiated a one-time contribution to the RCWD Retirement Medical Benefit Trust to increase funded ratio to 80%.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Administer annual update to financial policies. GP3.S5.O10-11 Administer annual credit rating review process. Complete a pension funding study.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Bond ratings received by rating Met Nov Nov agencies Maintain credit worthiness of the Complete continuing disclosure AA or AA or AA or District reporting requirements Better Better Better Number of non-compliance 0 0 0 reportable events
Review and maintain adequate Updated long range financial plan Annual Annual Annual bonding capacity
Compliance with District approved investment policy 100% 100% 100% Investment portfolio performance Investment return compared to established benchmarks for each 100% 95% 95% investment pool.
138 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Real Estate Management Consistent with the District’s strategic objective to maximize the benefits of its real estate holdings, Real Estate Management is responsible for overseeing, managing, and administrating the District’s real estate holdings. These business and asset management functions provide full levels of services to acquire, utilize, maintain, dispose, and manage District properties. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Successfully extended the lease of a portion of Diaz Road facility for three years (w/Index Fresh); and . Commenced negotiations to acquire reservoir site.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Pursue acquisition of property for future 1305 and 1610 zone reservoir sites. GP3.S3.O2-3 Investigate and acquire potential well sites as identified in the integrated resource plan.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Negotiate purchase of reservoir Property acquired In Process One Complete In Review sites # of Sites acquired
Diaz Road Tenant Tenant in place Maintain Maintain Maintain
139 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Grants Acquisition and Management Activities ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Tracked and reported monthly on local, state, and federal funding opportunities, funding applications, and funding awards; . Complied with the District’s Grant Management Procedures to ensure consistency with existing District policies, auditing standards, and the requirements for grant accountability in grant agreements; . Prepared lobbying documents, including grant funding awards and needs, for use in meetings with federal agencies; . Attended grant workshops and participated in numerous meetings with funding agencies to gain information, build relationships, and inform funding agencies of RCWD project benefits, including with the U.S. Bureau of Reclamation and California Department of Water Resources; . Applied for two Department of Water Resources grants, including one in partnership with the City of Temecula; and . Successfully awarded two Department of Water Resources grants, including one USMW IRWM interregional project with the Santa Ana IRWM Region under Proposition 84.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Conduct Grant and Funding Acquisition – Pursue federal, state, and local grants and funding from such agencies as the U.S. Bureau of Reclamation (USBR), U.S. Geological Survey (USGS), California Department of Water Resources (DWR), State Water Resources Control Board (SWRCB), California Department of Food and Agriculture (CDFA), California State Parks, and Metropolitan Water District of Southern California (MWD). Convene Grants Oversight Team periodically to identify eligible projects for identified GP3.S4.O1-5 funding and confirm application for funding opportunities. Establish a qualified IRWM Project List from USWM IRWM Plan and prepare/submit a Proposition 84 IRWM Implementation Grant Round 3 application. Prepare for Proposition 1 funding opportunities through tracking of State agency funding programs, including development of Proposition 1 IRWM Grant Guidelines. Execute state and federal funding agreements, and manage reporting requirements including progress reports, invoicing, and deliverables for each agreement. Follow Grant Management Procedures.
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Attend grant workshops, prepare project documents, participate in meetings with Conduct Effective Grant funding agencies to gain Met Ongoing Ongoing Acquisition Outreach information, inform of RCWD project benefits, and build relationships Track and apply for funding opportunities, and Ongoing as Conduct Acquisition of Local successfully receive grant Met Ongoing funding Funding awards from Metropolitan available and other local sources Track and apply for funding opportunities, and Ongoing as Conduct Acquisition of State successfully receive grant and Met Ongoing funding Funding funding awards from DWR, available SWRCB, and other State sources Track and apply for funding opportunities,& successfully Ongoing as Conduct Acquisition of receive grant and funding Met Ongoing funding Federal Funding awards from USBR, USGS, available and other Federal sources Establish qualified project list Submit a DWR IRWM from USMW IRWM Plan and Begin Implementation Grant Round Submit prepare a IRWM On Track Summer 3 Application for the Spring 2016 Implementation Grant Round 2015 USMWD IRWM Region 3 Application Track State agency funding Prepare for Proposition 1 programs, including Met On Track Ongoing Funding Opportunities development of Proposition 1 IRWM Grant Guidelines Periodically update the Grants Oversight Team on grant Convene and Update Grants opportunities and acquisition Met Ongoing Ongoing Oversight Team to seek input on potential projects for funding pursuits Prepare and submit quarterly/semi-annual Manage Requirements of State progress reports, invoices, & Met On Track Ongoing and Federal Grant Agreements deliverables to funding agencies
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Purchasing Purchasing is responsible for the procurement of material and services in an expeditious and cost effective manner to ensure continued operation and maintenance requirements for both external and internal customers. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Updated cell phones users and inactivate air cards as needed . Finalized Purchasing Procedure Manual; . Created new contract for services, as well as new Terms and Conditions for Service Purchase Orders; . Continue to update insurance tracking with EBIX; and . Streamlined Sole Source Documentation process.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Standardize purchase order follow up process. Implement contract management process. GP3.S10.O1 Continue to refine paperless process. Continue to purchase material to maintain inventory levels. Search out a credit card program with enhanced benefits. Initiate planning and communication with other departments to provide cost effective and GP3.S10.O9 timely purchases.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Process all requisitions within Process requisitions in a timely 1 business day of receiving in n/a 100% 100% manner purchasing inbox Process all purchases for material requirements Process all stock material needs indicated by the Vendor n/a 100% 100% in a timely manner Reorder Advice
Report within 2 business days Process contract in 2 business Create Requested Contracts in days after receipt of necessary n/a 100% 100% a timely manner documentation
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Warehouse The Warehouse is responsible for setting and maintaining a responsive inventory control system to ensure availability of material required for maintenance, operation, and repairs. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Maintained adequate inventory level; . Less than 1 hour turn around on 90% of requisitions; . Received and shelved inventory items in a timely manner; . Placed inventory replenishment orders in timely manner; . 100% accuracy on independent audited inventory count; . Continue to refine process for disposal of miscellaneous items through internet sources; and . Continue to assist Meter Department with Itron antenna change out.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Evaluate and correct hi/low quantities. GP3.S10.O1 Continue e-catalog process. Standardize inventory purchase follow-up process. Initiate communication with other departments on needs to provide appropriate material GP3.S10.O9 requirements.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Prepare and complete 1 spot Cycle count in a timely manner n/a 100% 100% count per week
All material received prior to Material Disbursement in a 3pm to be delivered or shelved n/a 100% 100% timely manner daily
All requisitions received prior Inventory requisitions to 3 pm to be pulled for staging n/a 100% 100% or delivered
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Engineering Division MISSION STATEMENT To develop, implement and manage various programs to ensure the delivery of reliable, high-quality water, wastewater, and reclamation services to its customers and communities in a prudent and sustainable manner. The Engineering Division’s mission is accomplished by providing high quality and responsive engineering services to internal and external customers through innovative and highly skilled professional and technical staff. Services include facility planning, design, project management, inspection, and coordination of District-led and developer-led facility work. The Engineering Division also satisfies the District’s mission by providing engineering leadership and support for all District functions.
PERSONNEL REQUIREMENTS (FTE) ACTUAL ACTUAL BUDGET PROJECTED FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Chief Engineer 1 1 1 1 Engineering Planning Manager 1 0 0 0 Water Resource Manager 0 1 1 1 Sr. Administrative Assistant 1 1 1 1 Office Assistant 1 1 1 1 Construction Contracts Manager 1 1 1 1 Contracts Administrator 1 1 1 1 Construction Inspector Supervisor 1 1 1 1 Sr. Construction Inspector 3 2 2 2 Civil Engineer 3 4 4 4 Associate Engineer - Design 1 1 1 1 GIS Analyst 1 1 1 1 Engineering Manager 1 1 1 1 Engineering Services Supervisor 1 1 1 1 Engineering Services Representative 3 3 3 3 Engineering Project Coordinator 1 0 0 0 Engineering Aide 1 0 0 0 Total 22 20 20 20
DIVISION SUMMARY Actual Budget Budget Category FY 2014-15 FY 2015-16 FY 2016-17 Labor $1,779,294 $1,429,506 $1,527,834 Materials 34,474 47,000 49,000 Outside Services 212,684 97,700 58,000 Funded Staffing Level 22 20 20
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CRITICAL SUCCESS FACTORS The Engineering Division has identified the following objectives it considers critical to the overall success of the Division and the District for fiscal year 2016-2017: . The timely completion of the report packages for the Engineering and Operations Committee meeting and Board of Directors meetings. . Preparation, approval, and implementation of the fiscal year 2016-2017 Corrective Capital Replacement, and Capital Improvement Programs. . Preparation and approval of the 5-year Capital Improvement Plan. . Implementation and completion of assigned Strategic Plan activities, particularly the groundwater management strategy, brine-management strategy, Santa Rosa Water Reclamation Facility strategy, water resource and capital facility strategy. . Provide assistance with the implementation of the Customer Information System and Document Management System. Included in this item is the further refinement and analysis of workflow processes within the Engineering Division and implementation of knowledge management practices. . The timely review of developer plan check submittals and professional and courteous customer engineering support. . Providing engineering leadership and support for all District functions and legal activities.
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Engineering Administration Engineering Administration is responsible for providing the required management, support, and leadership to ensure the Engineering Division’s objectives are accomplished. General administration is accomplished through records management, correspondence processing, legal activity support, supplementary administrative support, and coordination with other District Divisions, and providing support to the Board of Director’s Engineering and Operations Committee. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Completed 100% on-time all monthly Engineering and Operations Committee meeting package preparation and corresponding minutes; . Completed 100% on-time over 400 individual pieces of correspondence and 27 contract specifications and consulting agreements; . Exceeded completion percentage for ACWA/JPIA’s Professional Development Program: Supervisor Basics, Human Resources, and Operations (program to be completed within 4 years) currently 58 percent; target for FY 2015-2016 is 25 percent (Office Assistant- Engineering); . Continuing Water Technology classes through Mt. San Jacinto College; achieved state certification in 2015: Grade D2 Water Distribution Operator and Grade T2 Water Treatment Operator (Senior Administrative Assistant and Office Assistant-Engineering); . Continued documentation support for the Engineering Division workflow process activities (knowledge management plan); . Processed continual updates to the latest version of the Water System Facility Requirements and Design Guidelines Manual for Board of Director review, as required to be included within the District’s Administrative Code; . Processed continual updates to the latest version of the Sewer System Facility Requirements and Design Guidelines Manual for Board of Director review, as required to be included within the District’s Administrative Code . Provided posting of the updated Facility Requirements and Design Guidelines, and Standard Specifications and Drawings Manual to the District’s website; . Maintained update log documents to track changes to the Standard Specifications and Drawings Manual front-end document, General Provisions, Special Provisions, and Technical Provisions. Update logs as incorporated into appropriate sections for the Standard Specifications and Drawings Manual and posted to the District’s website for clarification of all revisions; and . Maintained and updated the master document list for the Engineering Division library.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP5.S2.O1 Provide prompt responses and cost effective customer service GP5.S4.O1 Provide staff support for Board of Directors’ meetings to engage community
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Complete Engineering and Operations Committee meeting Completed within monthly 100% 100% 100% packages and Board meeting write- scheduled deadlines ups
Prepare and complete transcription of Engineering and Operations Within 30 days of subject meeting 100% 100% 100% Committee meeting minutes
Provide timely response to all requests for finalization of correspondence, agreements, Within one day of receipt 100% 100% 100% specifications, and miscellaneous tasks assigned on a daily basis
Participation in ACWA/JPIA’s Program to be completed within 4 Professional Development Program, 99% 58% 75% years (Office Assistant) Supervisor Basics
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Water Resources Water Resources/Engineering Planning’s primary responsibility is for the immediate and long-range facility planning for water, water reclamation, and wastewater facilities ensuring needed facilities are available to provide reliable and sustainable services for District customers. This is accomplished by updating the facility master plans (including the sewer system management plan), developing fiscal year capital improvements/replacement programs, furthering regional and local agency coordination, assisting with regulatory compliance activities, and assisting with CEQA documentation and design of major capital improvement projects. In addition, water resources planning activities include preparing the Urban Water Management Plan, Agricultural Water Management Plan and Water Supply Assessments. GIS planning and analysis activities include data management and spatial analysis activities specifically focused for support of the Engineering Department. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Developed the fiscal year (FY) 2016-2017 Major and Minor Capital Projects included in the FY 2016-2017 Budget; . Developed the 5-Year Capital Improvement Plan for FY 2016-2017 through FY 2020-2021; . Completed Sewer System Management Plan internal audit; . Pursued initiatives with IT Department to further the District’s workflow to assure data quality and enterprise publication of agreements in GIS to include development of a Document Workflow Portal Design; . Completed the MOU for the Proposed Oceanside Outfall Optimization Agreements; . Completed the 2015 Urban Water Management Plan; . Completed the 2015 Agricultural Water Management Plan; . Completed the 2015 EPA Needs Survey; . Completed the Vail Property Guidance Document; . Assisted with various ownership issues related to the Vail Lake Properties ; . Assisted with the formation of the SRRRA Joint Powers Agency . Completed the update of the Water Facilities Master Plan including the update to the Water Resources Management Plan; . Completed the 2016 RCWD Wastewater Facilities Master Plan; and . Completed Vail Dam Seismic Structural Analysis in conjunction with the Seismic and Hydrologic Deficiency Evaluation.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP3.S5.O1 Continue planning work for conjunctive use at the upper VDC. GP1.S2.O1 Continue planning analysis to increase the use of recycled water. GP3.S5.O4 Develop annual 5-year Capital Improvement Plan. GP1.S4.O2 Negotiate and finalize arrangements for brine disposal. GP1.S1.O2 Track opportunities for water transfers. GP1.S3.O1 Assist with development/implementation of Local Area Management Plan GP3.S5.O1 Assist with development/implementation of Comprehensive Asset Management Plan
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Develop proposed Capital Improvement June June June Fiscal Year CIP Budget approval Program projects 2015 2016 2017
Percentage of assigned Complete assigned tasks/projects 80% 80% 90% tasks/projects completed
Completion of all assigned projects in a Percentage of actual cost 94% 80% 80% cost effective manner. compared
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Engineering Design Engineering staff generates a variety of engineering deliverables and performs related services for its internal and external customers in support of capital improvement and land development projects within the District’s service area. Engineering staff ensures that new water, sewer, and recycled water facilities, and the provisions of water and/or sewer service, comply with applicable laws, ordinances, and District standards and/or policies. Activities include: . Project management of District-led major and minor capital improvement projects, to include design, preparation of construction contract documents (plans and specifications), and related coordination and specialized tasks. . Plan checking and post-construction documentation of developer-led water, sewer, and recycled water facility and service improvement projects. . Responding to inquiries for engineering and related technical information, including water availability, fire flow/hydrant location, and facility conflict evaluation and processing. . Interdepartmental coordination of District-led and developer-led facility improvement projects. . Maintaining the District’s Facility Design Requirements, as well as the Standard Specification and Standard Drawings documentation. . Providing technical support to the Engineering Planning and Engineering Services work groups. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Managed various capital improvement projects (CIP) through design and/or construction phases—project activity included: o Santa Rosa Water Reclamation Facility upgrades/retrofits o Reservoir recoating; o Disinfection System Upgrades (various wells, pump stations, and reservoir sites); o Chlorination disinfection improvements at Ace Bowen PS and Senga Doherty PS; o Water quality improvements at Well No. 102; o New groundwater production wells; o Replace groundwater production wells o 1610 PZ reservoir and supply pipeline; o Recycled water storage pond No. 5 habitat restoration; o 5 MW Solar Power Project; o Water pipeline extensions/replacements; o Anza PS expansion; o Miscellaneous pipeline and appurtenances (facility) relocation/retrofits; o Miscellaneous sewer system collection system repairs; o Miscellaneous water system valve appurtenance replacement/installation; . Processed and coordinated various developer projects through the plan review/approval and construction phases; . Processed post-construction facility record documentation and GIS conversion of all completed developer and District CIP projects;
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. Performed a multitude of technical inquiries and evaluation for both internal and external customers; and . Performed and published updates to Engineering department reference documentation (Water and Sewer Facility Design Requirements, Standard Specifications, Standard Drawings, and On-site Recycled Water Irrigation Guidelines and Requirements) – Ongoing.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Proficient and timely implementation of capital projects, especially those in support of GP1.S3.O4 maximizing groundwater production. GP1.S1.O5 Process onsite recycled water retrofits in accordance with Mandatory Use Policy. GP3.S6.O1 Evaluation and implementation of facility retrofits of the SRWRF. GP3.S1.O1 Evaluate and explore potential water wheeling agreements with other agencies. GP4.S5.O1 Assist with evaluation and implementation of energy efficient systems. GP4.S5.02 Assist with evaluation and implementation of alternative energy opportunities. GP5.S3.O1 Proficient and timely processing and coordination of developer led facility and service GP5.S3.O2 improvement projects.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Completion of all major and minor Less Less Percentage of actual cost compared CIP projects in a prudent and cost 90% than than to budgeted cost effective manner 110% 110% Proficient and timely completion of Published turn-around time; positive developer-led facility plan checks (project account) balance 92% 95% 95% without exceeding deposit throughout plan check phase At July At July Assess/improve the accuracy and and and Ongoing (frequent) review and function of Engineering reference Met January January updates to documents documentation E&O E&O Mtg. Mtg.
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Engineering Services The Engineering Services Section’s primary responsibility is to provide engineering-related customer service to both internal and external customers of the District. Much of the customer service activity is provided to the development community through the processing and coordination of new water and sewer facilities and service installations. In support of this effort, Engineering Services staff participates in the review of rates and charges and fees for service, research for annual property assessments, and annexation processes. Specific activities include: . Process and coordinate applications for new service connections. . Process and coordinate applications for Developer Plan Check and inspection projects. . Process requests for engineering evaluation and correspondence (Water Availability, Fire Flow, Hydrant Location, etc.). . Process and track recordation of all documents with the County of Riverside. . Support the Planning Department with the Agricultural Requests for Variance and Consolidation. . Administer the Recycled Water Service Program in conjunction with Water Quality staff. . Respond to customer inquiries for engineering and other technical information. . Review all new customer questionnaires. . Assist in processing the variance requests for the new-tiered water budgets. . Assist the Engineering Department with various research and data-driven activities. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Facilitated customer notification for all scheduled water shutdowns; . Processed 150 drop in meter requests and 40 full meter requests; . Processed 100 fire hydrant construction meter requests; . Processed 10 new fire hydrant installation requests; . Processed 40 plan check requests and 25 inspection job requests; . Maintained tracking of numerous floating fire hydrant construction meters; . Continue coordination with EMWD and WMWD to verify and improve the sewer connection hookup procedures; . Identification and cleanup of incorrect APN numbers within the billing system; . Agency Agreement and Private Well Agreement GIS conversion for improved operational efficiency and staff productivity; . Processed 50 requests for first and final water/sewer clearances; . Processed 130 requests for fire hydrant location maps; . Processed 40 requests for water availability letters; . Processed 110 requests for witness fire flow letters; . Assisted Customer Service staff with the collection process;
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. Assisted Finance Department with research for annual property assessments; and . Provided frontline administration of the variance request program. This includes the following. o Data entry of all information from the variance request forms directly into the billing system for all customer classes and calculated landscape measurements; o Indexing all paperwork to be scanned into the customer billing records for future reference; o Issuing the approval correspondence to the customer’s variance request; o Using GIS, tracking of landscape areas based off variance requests; and o Coordinated with the Contract’s Department for the field verification of accounts.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP5.S4.O1 Provide prompt responses and cost effective customer service
Inform RCWD customers about water issues, water rates, policies, and water efficiency GP4.S1.O14 assistance opportunities
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Timely processing of new service Turnaround time: one week or requests (all deposit – and fee-based 100% 100% 100% sooner applications)
Timely process of incoming and Turnaround time: two-days or outgoing Plan Checks and/or 100% 100% 100% sooner Inspection Packages
Timely process of phone call Turnaround time: two-days or 95% 95% 95% requests for information sooner
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Construction Contracts Construction Contracts is responsible for administering the contracts for construction of District capital facility projects, District corrective projects, developer-provided facility projects, and community facilities district (CFD) and assessment district (AD) project programs. Construction Contracts also provides technical support for the District’s Field Services construction teams. The primary focus of this area is to ensure all facilities are constructed in accordance with District standards, thereby enhancing the ability of the facilities to provide reliable and sustainable services. To accomplish this goal, the Construction Contracts department manages the entire bid process, construction activities, safety measures, and final inspection of completed facilities. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Completed construction of the following CIP projects: o Well No. 161 Drilling, Construction, Development, and Testing: Replacement; o Miscellaneous water valve and appurtenance replacement/installation Santa Rosa and Ranch Divisions; o Well 161 Medium Voltage Power Cable Extensions; o Well 210 Replacement; o SRWRF Dewatering Process Pump Replacement; o Interior Recoating and Cathodic Protection for Buck Mesa Reservoir No. 1; o Lead coating removal and exterior coating of Buck Mesa Reservoir No. 1; o Interior Recoating and Cathodic Protection for El Prado Reservoir No. 2; o Interior Recoating and Cathodic Protection for Buck Mesa Reservoir No. 2; o Lead coating removal and exterior coating of Buck Mesa Reservoir No. 2; o Well 216 Pump-to-Waste Pipeline; o Warranty repairs for Bear Creek Sewer Pipeline Relocation; o Exterior Coating of Vail Reservoir; o Valve replacement and new installation projects; and o Various city and county relation projects. . Administration and inspections of developer-constructed facilities: o Installed 26,400 lineal feet (LF) of pipeline; and o Installed 18 double detector checks and 95 fire hydrants.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Provide construction contracts inspection and administration of the fiscal year 2016-2017 GP3.S7.O4 Facility Corrective Program Provide construction contracts inspection and administration of the fiscal year 2016-2017 GP1.S3.O3 Capital Improvement Program GP2.S4.O1 Provide construction contracts inspection of developer funded projects. GP3.S4.O5 Complete revised RCWD Contracting Procedures Manual Provide continued documentation support for the Engineering Division workflow process GP5.S2.O1 activities (knowledge management plan)
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Complete Engineering and Completed within monthly Operations Committee status 100% 100% 100% scheduled deadlines reports
Within monthly scheduled Finalize monthly progress reports 100% 100% 100% deadlines
Timely completion of construction Percentage of projects completed by 97% 95% 95% projects scheduled date
Prepare daily reports for each Submit daily reports 100% 100% 100% project
Timely submission of final as-built Submit within two weeks of Notice drawings to Engineering 100% 100% 100% of Completion Department
Construction Contract Change Change Order cost as a percentage Less than n/a n/a Orders of original Contract Amount 7%
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Operations and Maintenance Division MISSION STATEMENT To operate and maintain the facilities and systems required to reliably deliver water, wastewater and water reclamation services to RCWD’s customers in a prudent and sustainable manner while producing high quality products and services that protect the public health.
PERSONNEL REQUIREMENTS (FTE) ACTUAL ACTUAL BUDGET PROJECTED FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Dir. of Operations & Maint. 1 1 0 0 Ops & Main. Technician 1 1 1 1 Ops & Main. Assistant 1 1 1 1 Water Ops. Manager 1 1 1 1 Water System Supervisor 1 1 1 1 Water Systems Operator 4 4 3 3 Water System Operator Analyst 0 0 1 1 Field Srv. Worker – Ops I/II 3 3 3 3 Pump & Wells Foreman 0 1 1 1 Pump & Well Tech I/II 0 2 2 2 Water Quality Supervisor 1 1 1 1 Water Quality Treatment Op. 4 4 4 4 Cross Conn Ctrl Tech. Specialist 2 2 2 2 Corrosion Control Tech. 1 1 1 1 Electrical Services Supervisor 1 1 1 1 Instrument & Controls Tech. 2 3 3 3 Sr. Elec. Cont/Instrument 3 3 3 3 Asset Management Manager 0 1 1 1 Operations Systems Admin 0 1 1 1 Operations Systems Analyst 0 0 1 1 Water Reclamation Manager 1 1 1 1 Wastewater System Supervisor 1 1 0 0 Wastewater Plant Operator 5 5 4 4 Wastewater Maint. Supervisor 1 1 1 1 WW Collections Systems Op. 2 2 1 1 WW Plant Operator in Training 0 0 1 1 Plant Maintenance Technician 2 2 2 2 Operations Project Manager 1 1 0 0 Total 39 45 42 42
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DIVISION SUMMARY
WATER: Actual Budget Budget Category FY 2014-15 FY 2015-16 FY 2016-17 Labor $2,791,425 $2,933,034 $2,802,816 Materials 425,441 743,673 570,840 Outside Services* 44,260,151 43,721,049 40,923,046 Funded Staffing Level 27 32 32 * Outside Service includes import water and energy expense
WASTEWATER: Actual Budget Budget Category FY 2014-15 FY 2015-16 FY 2016-17 Labor $981,140 $941,432 $893,647 Materials 215,304 159,785 197,050 Outside Services 1,724,777 1,836,142 2,118,290 Funded Staffing Level 12 11 10
CRITICAL SUCCESS FACTORS The Operations Division has identified the following objectives it considers critical to the overall success of the Division and the District for fiscal year 2016-2017: . Economically provide potable, sewer and reclaimed water by meeting budgeted well production and optimizing material, outside services and operator and electrical services labor costs. . Reliably provide same services by minimizing the effects of purchased treated water and energy shortages. . Protect the public health and environment by meeting all Department of Health Services, EPA, and Regional Water Quality Control Board requirements.
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Water Operations Water Operations is responsible for operating the potable, recycled, and raw water systems in a manner that ensures reliable and sustainable deliveries to District customers. To accomplish this, Water Operations utilizes a Supervisor Control and Data Acquisition (SCADA) system that controls water production and flow through the District’s transmission and distribution system. Additionally, this area performs various maintenance, monitoring, and evaluations of the source of supply and transmission and distribution systems to maintain operational readiness. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Averaged 251 valves exercised per month with a three man crew plus one operator; . Continued working closely with SCE to maximize pump efficiencies with their pump test programs as well as their rebate opportunities; . Successfully coordinated District wide reservoir inspections with the District’s contracted diver with no disruption of service or customer outages; . Worked closely with the Engineering Department offering operational advice on well treatment strategies, and disinfection direction; . Upgraded the arrow boards on our valve trucks for increased safety and efficiency; and . Continue to help develop new SCADA platform providing experience to contractor to help with the integration.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Implement, integrate, and utilize replacement CMMS: Utilize CMMS for equipment GP3.S7.O1 maintenance and historical record keeping. Evaluate and implement energy efficient systems: Continue to utilize the SCE Pump GP4.S4.O1 efficiency program to determine the most efficient way to run the distribution system. GP1.S1.O4 Assist in developing a groundwater well asset management plan.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET; ACTIVITY CRITERIA 14/15 15/16 16/17 Check system with 5 minutes of Support Water Quality during alarm and respond to hazmat hazmat situations and respond to 100% 100% 100% situation within the 30-minute system alarms in a timely manner requirement
Actual well production equals Meet budgeted well production 91% 95% 95% budgeted amount
Stay consistent with valve Exercise and map average of 300 93% 100% 100% exercising/mapping valves per month
Complete all preventative Plan and execute monthly maintenance including monthly preventative maintenance and 83% 100% 95% flushing activities throughout the flushing activities with customer District notification
158 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Corrosion Control Department The Corrosion Control Department is responsible for providing corrosion control services for the District’s distribution system in addition to a wide range of project-oriented research and analysis of operations and maintenance projects. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Continue to correct issues relating to reservoir cathodic protection systems, which had been damaged or out of calibration, which could adversely affect the life of RCWD’s reservoirs. Staff adjusted the power output and number of anodes in the reservoirs to maintain the correct voltage in the affected reservoirs; . Completed the annual reservoir and mainline cathodic protection survey; . Implemented a reservoir maintenance strategy; and . Completed all CP maintenance and have begun to implement a new 3-year program for the CP maintenance.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP3.S7.O2 Complete all cathodic protection preventative maintenance. GP2.S3.O1 AQMD, DEH regulatory compliance.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Identify condition of all Santa Evaluate existing reservoir Rosa and Rancho reservoir 75% 100% 100% Cathodic Protection systems cathodic protection systems
Complete all CP preventative By time period prescribed under 75% 100% 100% maintenance maintenance schedule
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Electrical Services Electrical Services’ primary responsibility is to maintain all electrical, electronic, instrumentation, associated control data networks, and SCADA systems and their networks that are used to supply water to District customers as well as systems that treat and reclaim water. This is accomplished through: . The immediate repairs to failed equipment . Routine maintenance of equipment to prevent failures, provide reliability and extend equipment life . Upgrade aging and obsolete equipment before it becomes an expensive re-occurring problem or unsupported A secondary function of the electrical services group is to provide support to other departments as needed. This is accomplished through: . Providing information as needed, such as NEC NFPA 70E code requirements, electrical imitations and control strategy options . Plan check electrical drawings for accuracy and proper function . Inspection assistance of new electrical/instrumentation construction . Give instruction in the operation of new or upgraded devices and systems used by operators Additionally, the electrical services group continues to revise operating systems for efficiency and ease of operation. Monitor District facilities for electrical violations and safety hazards to maintain an electrically safe environment. Continue to be aware of new and proven devices that increase reliability and cost savings. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Upgraded all field lighting fixtures to LED’s for energy savings. . Replaced obsolete PLC control panels for all booster stations. . Install emergency generator quick connects at critical pump stations. . Install transfer switch and tap box to connect emergency generator to “C” building during SCE power outages. . Installed emergency generator quick connect on headworks at treatment plant . Replaced 9 motor control centers to comply with new arc flash regulations . Automate WR34 operation according to CORMA agreement. . Added flood detectors & access door sensors for all in-ground vaults . Deploy SCADAWATCH module on Scada network to provide data for business users.
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STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Replace MCC panels that are not complaint with new arc flash regulations. Convert remaining serial data lines to Ethernet. GP3.S7.O2 Calculate real time flow total in field PLC’s. Convert well default flows to average daily flows in SCADA.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Complete Replace Nine non arc flash Remove old MCC and replace n/a by June 100% compliant MCC’s. with compliant MCC 2016
Install electrical & Complete Wire cathodic protection signal instrumentation to bring n/a by June 100% to PLC for 20 reservoirs cathodic protection signal to 2016 SCADA
Replace MEB with router to Complete Replace 15 MEB’s with network facilitate quicker wireless n/a by June 100% routers. network troubleshooting 2016
Install level probes to provide Complete Install well level probes in 12 well level data in SCADA for n/a by June 100% Production wells operations 2016
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Water Quality Water Quality is responsible for protecting the public health while ensuring the District delivers high quality water to its customers. To accomplish this, Water Quality investigates and resolves water quality issues, customer inquiries, and complaints; maintains a system of sampling; completes analysis and regulatory reporting; operates and maintains systems for disinfection; and implements and supports District projects. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Successfully met all regulatory requirements; . Achieved all compliant regulations and related reporting; . Completed all required reporting to Regional Water Quality Control Board; . Completed UCMR3 sampling requirements and reporting; . Implemented the new NPDES discharge requirements, training, and reporting; . Met all Required Recycled Compliance Inspections and Reporting; . Applied for reduced sampling for VDC Well 154; . Maintained compliance at Vail Resort water system and related reporting; . Maintained all disinfection pumps and related equipment; . Maintained compliance at Rainbow water system; and . Began Cross-Connection Control correctives at Vail Resort.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Meet or exceed regulatory and environmental requirements. GP2.S3.O1 Meet all compliant regulations and reporting to SWRCB. Meet all compliant regulations and reporting to RWQCB. Complete sampling requirements for new wells coming on line. Convert Ace Bowen Pump Station (PS), Senga Doherty PS, Rancho CA PS, and GP2.S4.O1 Joaquin PS to OSG with Ammonia for improved disinfection. Maintain Vail Resort water system compliance. Maintain Rainbow water system compliance. GP3.S7.O1 Utilize CMMS for maintenance of related equipment.
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 141/15 15/16 16/17 Prompt reporting to the Department By deadline required under state 100% 100% 100% of Health Services regulations
Prompt collection of water quality By deadline required under state 100% 100% 100% samples regulations
Return phone call within 24 hrs. or Timely response to customer calls 100% 100% 100% next working day
Timely response to cross connection Inspection within 10 working days 99% 100% 100% inspection requests
Complete all preventative By time period prescribed under 88% 100% 100% maintenance maintenance schedule
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Asset Management RCWD Asset Management operates on a solid Asset Management foundation wherein services provided meet customer expectations for reliability, sustainability, and cost effectiveness, and the RCWD Asset Management Program is a best practice model for other areas agencies to follow. Asset Management supports RCWD’s objective to ensure that people, processes, and technology work seamlessly together to optimize ratepayer investments in District assets. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Developed Fiscal Year (FY) 2015-2016 Major and Minor Capital Projects included in the FY 2015-2016 Budget; . Developed the 5-Year Capital Improvement Plan for FY 2015-2016 through FY 2019-2020; . Completed Asset Management Plan Framework, Asset Management Plan Template, Asset Management Plan for Wells to include populated asset risk tool with well asset information, identification of critical well assets, completed two business case evaluations for capital and maintenance needs, and populated CIP prioritization tool with criteria aligned to RCWD values and goals that resulted in a prioritized CIP project list for FY 2016-2017 Budget and the 5-Year Capital Improvement Plan for FY 2016-2017 through FY 2020-2021 ; . Secured grant funding for Santa Margarita River Watershed CWRMA Groundwater Model Runs and Evaluation; . Completed the Upper VDC Conjunctive Use Optimization Study Update – Economic Update; . Pursued initiatives with IT Department to further the District’s workflow to assure data quality and enterprise publication of agreements in GIS to include development of a Document Workflow Portal Design; . Completed Vail Dam Seismic and Hydrologic Deficiency Evaluation to include development of Vail Dam Emergency Action Plan, Dam Breach Report, Interim Operation Plan and structural seismic analysis;
STRATEGIC PRINCIPLE/ STRATEGY/OBJECTIVE FISCAL YEAR 2016-17 INITIATIVES GP1.S2.O2 Continue CWRMA Groundwater Model Runs and Evaluation GP1.S3.O3 Continue Implement groundwater conjunctive use project – Phase 3&4 GP2.S2.O1 Implement the SNMP monitoring SMR Nutrient Initiative GP2.S3.O3 Tract regulation development and engage where appropriate GP3.S3.O3 Investigate potential well sites for acquisition GP3.S5.O1 Implement Asset Management Planning GP3.S5.O4 Contribute to annual development of 5-year CIP GP3.S7.O1 Continue implement, integrate, and utilize CMMS GP4.S4O3 Utilize new SCADA for Asset Management Planning
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 15/16 16/17 17/18 Complete Engineering and Operations Complete within monthly 100% 100% 100% Committee and Board scheduled deadlines Meeting Staff Reports
Develop and Implement February FY 2016-2017 Budget Approval June 2016 June 2017 Asset Management Plans 2016
Complete assigned Percentage of assigned projects 80% 80% 80% projects completed
Completion of all Percentage of actual cost Less than Less than assigned projects in a 95% compared to budgeted costs 110% 110% cost effective manner
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Pumps and Wells Function Pumps and Wells provide routine and complex maintenance, repair to all District wells, and pump stations. This area enhances customer satisfaction by enabling the District to provide reliable and sustainable services to its customers by maintaining the system that keeps the services flowing. ACCOMPLISHMENTS FOR THE FISCAL YEAR 2015-16 . Completed 100% of the 2,630 weekly, monthly, and quarterly CMMS generated Preventative Maintenance Work Orders to inspect and complete minor repairs to District Pump Stations and Well Sites; . Completed 5 major repair work orders to District pump stations; . Completed 1 new installation and are on schedule to complete 2 major repair work orders to District well sites; . Scheduled, inspected, and reviewed all work performed by outside contractors on District pump and well facilities; and . Initiated new tools and processes to assist in the rehabilitation of District wells.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP3.S7.O2 Maintain high level of preventive maintenance reliability standards. Complete all corrective work orders in a timely manner to minimize down time and GP3.S7.O1 production loss for well. GP3.S7.O4 Complete all capital well rehabilitation and pump station modifications by June 30, 2017.
GP3.S7.O1 Assist in the initiation of a well assessment program for District facilities.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Complete CMMS Schedule preventative preventative maintenance 100% 100% 90% maintenance within five business days of start date
Schedule and complete all corrective work orders 93.5% Average Work orders 94% to date 90% within 90 days to for the year minimize downtime
Complete all 2016-2017 50% On tract for budgeted capital well & Capital Projects 100% 100% of projects pump projects by June 30, Some projects completion 2017 deferred
166 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Wastewater Treatment Wastewater Treatment is responsible for providing reliable and sustainable wastewater collection and treatment services for the District’s customers. Additionally, this area is responsible for accomplishing its duties in a prudent manner by completing its task using effective management practices and ensuring an environmentally responsible operation. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Completed multimedia Filter #2 Pilot Study; . Changed out the media in the multimedia system, Filters #1, #2, #3, and #4; . Began Design Phase of the SRWRF Facility Rehab project; . Completed the SCADA HMI and Operating System conversion; . Implementing Digester piping modifications and restoring Digester back in service; . Completed Final Design of Disinfection Active Feed Control System; and . Completed installation of Gravity Table Thickener Sludge Pump.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE GP3.S6.O1 Finalize rehabilitation options for SRWRF
GP3.S1.O1 Participate in annual joint agency hazardous materials response drill.
GP2.S3.O1 Meet discharge water quality requirements.
GP3.S6.O1 Begin design and construction of new aeration facilities for the SRWRF.
GP5.S1.O3 Continue to meet with contributory wastewater agencies.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Timely completion of SDRWQCB Reports submitted by 30th day of Reports and monthly scheduled 100% 100% 100% the following month maintenance
Compliance with SDRWQCB Prevent discharge order 100% 100% 100% discharge orders violations
Eliminate Sewer overflows No Preventable sewer overflows 92% 100% 100%
Effectively maintain existing Complete 95% of preventative 100% 95% 100% equipment maintenance tasks on schedule
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Field Services Division MISSION STATEMENT To ensure that District’s customers receive reliable and sustainable services. Field Services is dedicated to accomplishing its mission in a cooperative team-oriented environment that emphasizes quality, safety, and customer service. The most critical function of the Field Services Division is to maintain and repair the infrastructure of the District. Repair and maintenance of the collections and distribution systems along with responding to emergency calls 24 hours a day is critical to providing uninterrupted service to our customers. Additionally, maintaining the operational ability of the District’s production wells is a critical task as it helps maintain supply and reduce the need for purchasing more costly import water.
PERSONNEL REQUIREMENTS (FTE) ACTUAL ACTUAL BUDGET PROJECTED FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Field Services Manager 2 2 1 1 Field Services Supervisor 0 0 2 2 Construction Foreman 3 3 3 3 Pump/Wells Foreman 1 0 0 0 Meter Repair Foreman 2 2 1 1 Field Services Construction Lead 2 3 3 3 Field Services Meter Repair Lead 1 1 0 0 Field Services AMR Lead 1 1 0 0 Field Services Construction I/II 12 11 10 10 Field Services Const. Locator 1 1 1 1 Sr. Field Services Meter/AMR 0 0 5 5 Field Services Meter/AMR I/II 5 5 2 2 Building & Grounds I/II 1 1 0 0 Field Services Intern 0 0 1 1 Fleet Facilities Foreman 1 1 1 1 Senior Mechanic 1 1 1 1 Pumps & Wells I/II 2 0 0 0 Total 35 32 31 31
DIVISION SUMMARY Actual Budget Budget Category FY 2014-15 FY 2015-16 FY 2016-17 Labor $2,729,132 $2,489,403 $2,452,184 Materials 1,793,322 1,522,300 1,350,507 Outside Services 2,460,882 1,532,501 1,785,614 Funded Staffing Level 35 32 31
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CRITICAL SUCCESS FACTORS The Field Services Division has identified the following objectives it considers critical to the overall success of the Division and the District for fiscal year 2016-2017:
. Participation on ERP Project to leverage District’s computerized maintenance management system to improve operational efficiency and reliability, provide better management reporting with accurate data for better decision-making, and have the ability to integrate with other District software systems throughout each department within the District. . Continued extensive training and mentoring programs for all staff members to ensure that employees are highly qualified and trained for their specific job duties and responsibilities. Design an individual personal development plan for each employee to maximize each employee’s skills and capabilities. . Completion of all preventative and corrective maintenance routines and plan for predictive facilities maintenance on all District-owned assets to include vehicles in accordance with specified requirements. . Continued Performance Monitoring, Reporting and Grant Management and Reporting of the Automated Meter Reading Program – Phase V/VI utilizing the District’s ongoing comprehensive meter change out/service maintenance program. . Operate on a solid Asset Management foundation wherein services provided meet customer expectations for reliability, sustainability, and cost effectiveness. Integrate processes designed to minimize lifecycle costs of owning, operating, and maintaining assets at an acceptable level of risk while continuously meeting established customer service levels.
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Field Services Field Services is responsible for maintaining the water and sewer systems infrastructure, ensuring the District provides reliable and sustainable services to its customers. Additionally, this function is responsible for full service meter installations establishing the water connection for new customers. ACCOMPLISHMENTS FISCAL YEAR 2015-16 . Completed 155 work orders during the first half of the fiscal year; . Completed 121 corrective jobs relating to the distribution system during the first half of fiscal year; . Completed 19 service requests; . Completed maintenance on approximately 930 appurtenances; . Installed approximately 18 new meter service connections; and . Constructed new Well No. 161.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Utilize procedures for disinfection that meet regulatory standards for maintenance and GP2.S3.O1 repairs to the distribution system. GP3.S7.O1 Utilize CMMS by means of mobile in the field.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Complete monthly assigned Complete CMMS monthly assigned preventative maintenance on maintenance on fire hydrants and 91% 90% 90% hydrants and air-vac’s air-vac’s
Timely completion of major Complete assigned repair/replacement of distribution repair/replacement jobs within 30 57% 75% 75% piping and valves days
Timely completion of unscheduled Complete assigned unscheduled 39% 75% 75% maintenance related work orders maintenance jobs within 30 days
Complete monthly assigned service Complete all service requests 94% 90% 90% requests assigned with 30 days
Meet completion dates and budget Complete assigned C.I.P. projects 53% 90% 80% for assigned C.I.P. projects.
170 Rancho California Water District Fiscal Year 2016-2017 Operating Budget Divisional Plans
Building and Grounds Building and Grounds is responsible for providing custodial and landscape maintenance to all District facilities including buildings, pump stations, well sites, and reservoirs. This maintenance sustains and extends the useful life of the District’s assets and assures an aesthetic appeal that enhances customer service. ACCOMPLISHMENTS FOR THE FISCAL YEAR 2015-16 . Maintained District headquarters’ and supported staff in all departments by completing 147 in- house service requests to date; . Successfully completed 376 CMMS generated Preventative Maintenance Work Orders; . Completed 15 Corrective Maintenance Work Orders to date; . Scheduled, inspected, and assisted in the completion of all Outside Services work done involving District landscape, janitorial, HVAC, and pest control contractors; and . Assisted in major renovations to District facilities including lobby security upgrades, new carpet installation, and upgrade to the plumbing/lighting at Diaz rental property; and
. Oversaw the acquisition of two new HVAC units and one new 600 lb. ice machine as part of District asset replacements.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE
GP3.S7.O2 Oversee, review, and inspect the work for contractors performing landscape, janitorial, HVAC, pest control, and other outside service work for the District.
GP5.S2.O1 Maintain the high level of customer service to staff from all departments throughout the District. Complete all corrective, planned, and CMMS generated PM work orders in the most GP3.S7.O1 efficient manner.
PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Respond to service requests In-House Service within 24 hrs. and complete 93% 90% 100% Requests within 5 business days
Complete all CMMS Preventative Maintenance CMMS generated PM 87% 90% 95% inspections and reviews within 30 days
Schedule, inspect, and Perform daily, monthly, review work performed by and quarterly inspections outside service contractor 100% 90% 95% of District facilities within 5 business days of completion
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Meter Maintenance Function Meter Maintenance helps to ensure reliable water deliveries and customer satisfaction by installing new meter services for developments, private residences, and agricultural customers in a timely manner. This area is also responsible for various repairs and inspections of individual meter services, recycled water meter services, pressure regulators, construction meters, and the maintenance of the mobile and fixed AMR network used to read District water meters, which helped to sustain high quality water deliveries. ACCOMPLISHMENTS FOR THE FISCAL YEAR 2015-16 . Completed 2,291 meter maintenance tickets to date, an average of over 327 tickets per month; . Exceeded the goal of a 99% read rate for the Fixed Automated Meter Reading (AMR) system by achieving an average daily meter read rate of 99.96% to date; . Installed 74 drop-in meters to date within five business days of receiving the work orders; . Responded to 100% of customer service calls regarding meter leaks, no water complaints, and AMR problems within 24 hours, exceeding the Department goal of 90%; . Postponed large water meter-testing program due to state mandated drought restrictions; and . Oversaw the acquisition of eight newly upgraded field tablets for all staff in the Meter Department.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Maintain the highest level of customer service by responding to all service orders within a 24-hour period consisting of AMR investigations, meter leaks, no water complaints, GP5.S2.O1 pressure issues, and meter turn-offs. GP5.S2.O1 Installation of meter drop-ins within five business days of receiving the work order GP5.S2.01 Achieve a minimum of a 95% meter read rate for new 100W Choice Connect system
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Achieve minimum of a 99% meter N/A (both N/A (both AMR Fixed and Mobile Network read for the 100W Choice networks networks 100% meter read rates Connect system replaced) replaced)
Install drop-in meters within five Meter Installation business days of receiving work 100% 90% 100% orders
Maintain the highest level of customer service by responding to Excellence in Customer Service all service orders within a 24 hour through timely new service period consisting of AMR 100% 90% 100% installations and meter repairs investigations, meter leaks, no water complaints, pressure issues, and meter turn -offs
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Mechanic Maintenance Function Mechanic Maintenance provides maintenance and recordkeeping of all District vehicles and heavy equipment, which keeps the fleet running and ready to respond. Additionally, this area also maintains stationary engines, which drive the District’s wells and pump stations. The timely completion of these functions enables responsive customer service and reliable water and sewer services. ACCOMPLISHMENTS FOR THE FISCAL YEAR 2015-16 . Met all Department of Transportation (DOT) requirements for truck inspections to date; . Maintained excellent rating on vehicles, trailers, and records required for compliance with the California Highway Patrol (CHP) Biennial Inspection of Temecula (BIT) Program; . Completed 662 CMMS generated preventative maintenance work orders on District vehicles and equipment to date; . Competed 144 corrective work orders on District vehicles and equipment to date; and . Completed the fieldwork to maintain the permits and records required by the California Air Resources Board (CARB) on the District’s portable and stationary power generating engines; and . Oversaw the acquisition of a new response trailer, backhoe, 3 light-duty service trucks, trailer- mounted hydro-jetter, and the replacement of fuel systems on both CAT Emergency Generator Units into the District equipment fleet.
STRATEGIC FISCAL YEAR 2016-17 INITIATIVES OBJECTIVE Maintain vehicles, trailers, and equipment to meet DOT and CHP BIT requirements and GP2.S3.O1 receive a satisfactory inspection rating on the 2017 BIT. Minimize vehicle and equipment down time for both corrective and preventative GP3.S7.O3 maintenance so that other department work schedules are not impacted. Continue the fieldwork necessary to maintain the permits and records required by CARB for GP2.S3.O1 the portable and stationary power generating engines. Schedule and inspect the completed job for any work done to the District’s fleet of vehicles GP3.S7.O2 and equipment by an outside service vendor.
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PERFORMANCE MEASUREMENT INDICATORS ACTUAL BUDGET TARGET ACTIVITY CRITERIA 14/15 15/16 16/17 Complete CMMS generated preventative Schedule preventative 100% 100% maintenance of vehicles 100% maintenance and equipment within 30 (by due date) (by due date) days of initiation
Maintain heavy duty Receive a satisfactory trucks and equipment to rating for the 2014 CHP 100% 100% 100% DOT standards BIT
Complete corrective maintenance work orders 90% 95% within 5 business days of 97% Corrective Maintenance (five business (five business receiving the materials required to complete the days) days) repair
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Long-Range Capital Financing Plan
Objectives Based on current general plans for the Cities of Temecula, Murrieta, and the County of Riverside, the ultimate build-out of the Rancho California Water District (RCWD/District) is expected to include 56,983 dwelling units, 5,128 acres of Business Park and commercial areas, and approximately 11,345 acres of agricultural use. According to the District’s Master Plan, the projected ultimate water demand (including recycled water) is estimated at 100,942-acre feet-an increase of approximately 60% over the current usage. In light of the substantial financial commitment required to meet the current and future service demands of the District’s constituency, the District’s Board of Directors determined that a long-range capital-financing plan would be a vital tool to utilize toward maximizing the District’s financial resources. This financial plan details future capital requirements as specified in RCWD’s completed facility master plans and identifies funding sources and the corresponding rate requirements to meet future debt obligations. The District funds capital improvement requirements through the issuance of long-term bonded indebtedness and, when available, cash reserves. The following plan determines a strategy for the repayment of existing and future debt obligations by projecting the many variables that affect the availability and growth of the District’s revenue sources. Development of the plan was influenced by the following goals: . Utilize the existing financial resources of property owners so that rates are minimized and benefits are maximized.
. Ensure that sufficient funds are available to meet the financing needs as detailed in the facility master plans.
. Allocate the costs of funding to the benefiting property owners or customers.
. Maintain ad valorem assessments and standby charges within current parameters.
. Structure rates in accordance with financial market and legal requirements.
In response to the completion of Riverside County’s General Plan (Riverside County Integrated Plan) and revisions to the General Plans MASTER PLANS for the cities of Temecula and Murrieta, the District revised its existing Water Facilities Water Facilities Master Plan, Wastewater Facilities Master Plan, and Wastewater Facilities Water Reclamation Facilities Master Plan with the completion of the Water Reclamation 2005 Water Facilities Master Plan and 2005 Wastewater Facilities Facilities Master Plan. These master plans were intended to identify and prioritize Regional Integrated all required capital facility improvements through 2030, (projected Resource Plan facility build-out). Furthermore, the District completed the 2005 Integrated Resources Plan (“IRP”) to optimize the District’s use of its water resources. The Water Facilities Master Plans was updated in 2015. The IRP was created to develop a long-term water supply plan that will help meet water demands from now until 2050. Through partnerships with Western Municipal Water District and Eastern Municipal Water
177 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
The current capital facilities financing program calls for expenditures of $804 million by the end of 2035, with $206 million being spent on new water facilities, $598 million being spent on replacement water facilities.
Water Facilities Revenue Sources As a California Water District, RCWD has various sources from which to fund water related capital facilities and the corresponding annual debt service. These revenue sources are: . Ad valorem assessments based on $100 of assessed land value;
. Standby charges based on acreage;
. Capacity fees;
. Federal subsidies and solar rebates;
. General purpose property taxes; and
. Developer contributions
The appropriate application of these revenue sources is critical to the success of the District’s financial plan. Classification of Water Facilities As the appropriate application of revenue sources is critical to the success of the overall financial plan of the District, so is the classification of water facilities critical to achieving equity for property owners within the District. The facilities of the District can be conceived as layers or categories. The first layer is the backbone system that provides for the production of water resources or the source of supply system. This layer consists of well production, groundwater recharge, import water, and major water-wheeling facilities. The second layer can be viewed as the delivery system and is broken down into numerous pumping and storage zones, each of which has a unique facility requirement, which varies based upon the character of the pumping zone’s water consumption and geographical requirements. This layer consists of booster pumping, distribution and storage facilities. The third layer can be viewed as the delivery system connected for each property in a pumping zone, which is supplied by the second layer facilities. As described above, these three layers build on one another. The source of supply facilities feed the pump zone facilities, and the pump zone facilities feed the property-specific facilities. Accordingly, the District’s facilities are broken down into three categories. These categories are defined based upon the relative level of benefit to property owners of the District. A brief summary of the three categories is outlined on the following page:
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FACILITY FACILITY TYPE BENEFITING PROPERTY OWNERS LAYER
Benefits all properties within RCWD’s sphere of influence since Category 1 Source of Supply source of supply facilities enhance the value of property due to water availability
Benefits all properties within a specific Division due to the fact that Divisional Delivery Category 2 the facilities provide for the delivery of water throughout the entire System Division
Property Specific Benefits only individual properties, tracts, or zones because they Category 3 Delivery System require delivery facilities in addition to the Category 2 facilities
Table 10.1 The key to a workable and equitable financial plan is to apply the appropriate revenue sources in such a way as to spread the financial burden of the facilities to the benefiting properties. This leads to a three- tiered funding approach for future facilities and a review of the allocation of existing debt service for existing facilities as outlined below. After definition and classification of facilities into the three categories described above, the funding of these facilities can be determined under the same theory. Since Category 1 facilities provide benefit to the entire District, they can be allocated and funded on a divisional basis; Category 2 facilities can be funded on a divisional basis; and Category 3 facilities on a property-by-property basis. This structure ensures that there is a matching of benefit to cost for the property owners within the District’s boundaries. In order to carry out this plan and apply it during the determination of assessments for each division and property therein, the debt service requirements are calculated and applied in the financial plan under the following formula: . The gross debt service requirement for existing and future debt is calculated for each division.
. Non ad-valorem assessment revenues such as capacity fees, standby charges, water debt service surcharges, and investment earnings on the debt service funds are then applied to determine the net ad valorem assessment requirement for each division.
. Under this theory, the bonding capacity of each division is determined under existing ad valorem rates.
. Bonding capacity is then used first for Category 1 facilities with the remaining capacity being applied to each division’s Category 2 facilities.
. If a division does not possess the required bonding capacity for its entire share of Category 1 and 2 facilities, then the Category 1 and 2 shortfall will be made up via landowner contributions with corresponding reimbursement agreements. The reimbursement agreements will then be funded via capacity fees collected from benefiting property owners within the applicable division.
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Accordingly, revenue sources collected from the property owners are applied as follows:
REVENUE SOURCE APPLICATION
Ad Valorem Assessments Fund Capital Improvements or Debt Standby Assessments Service Related to Category 1 and 2 Facilities Water Surcharge
Fund Capital Improvements or Debt Capacity Fees Service Related to Category 2 Facilities
Landowner Contribution or Special Financing Instruments Construction of Category 3 Facilities
Table 10.2 The financial plan calculates the bonding capacity for each division after the application of existing debt service costs and future debt service costs relating to Category 1 and 2 facilities. The remaining bonding capacity for each division then represents that division’s capital budget. Facilities must then be prioritized within each division to ensure that each division does not exceed its current bonding capacity. Any facility requirements exceeding the division’s current bonding capacity must be funded via landowner contribution in the form of cash or alternative financing vehicles. If any other sizing is required, reimbursement agreements can then be established and repaid via capacity fees charged to benefiting properties that connect in the future. The numerous advantages to this financing plan are as follows: . The District will not exceed its current bonding capacity;
. The collection of assessments is directly related to the benefit that each property owner receives from corresponding facilities;
. Since the District will not issue debt in excess of its current bonding capacity, the risk relating to development timing is shifted to the developing property; and
. Higher bond ratings; thus, lower financing costs.
180 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Allocation of Facility Costs Specific facility costs are also allocated to each of the District’s water divisions based upon estimated benefit. The adjacent table depicts the allocation formulas for specific facility types and the rationale for divisional allocation.
FACILITY ALLOCATION
67% Rancho Division; 33% Santa Rosa Division – Resource Distribution Facilities Based upon ultimate water demand
50% Rancho Division; 50% Santa Rosa Division – Resource Wells Based upon local water allocation
70% Rancho Division; 30% Santa Rosa Division – Recycled Water Advanced Treatment and Storage Based upon ultimate demand
Rancho Wells 100% Rancho Division – Economic Benefit
Santa Rosa Wells 100% Santa Rosa Division – Economic Benefit
50% Rancho Division; 50% Santa Rosa Division – Recharge Water Facilities Based upon water allocation
Table 10.3
Replacement of Facilities Setting aside replacement reserves for aging facilities is of particular importance to water and wastewater utilities because of the relatively large investment in utility plants required providing service. Depreciation of utility plant assets is an economic fact that must be given explicit and systematic recognition as a cost of rendering service. A failure to adequately fund the replacement of utility assets over their useful life creates a concealed form of deficit spending. The first step in creating a replacement funding strategy is to quantify future replacement costs. In January 2006, the District completed a comprehensive and detailed capital facility replacement study. This study identifies the replacement requirements through the year 2050. It is expected this study will be updated through the completion of the implementation of a Comprehensive Asset Management Program. This is expected to be complete by 2021. Addressing the need for replacement cost funding; the District has taken a proactive two-pronged approach to meet this funding requirement. First, as the District currently funds the majority of its new facility requirements with the issuance of debt, the District’s long-range financial plan anticipates extending this practice for the funding of future replacement facilities requirements as well. This will allow the bonding capacity of the District to be utilized consistently with the transition from new to replacement facilities. Therefore, the existing revenue streams to fund today’s debt service on new facilities will likewise shift and be utilized to fund future debt service related to replacement facilities in the future. Secondly, when needed, a charge within the existing water rates will be utilized to meet additional funding requirements.
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The graph below details projected future facility requirements in five-year increments. As is demonstrated by the graph, between now and the year 2065, the District’s planning focus will shift from new facilities to the management of replacing aging facilities.
Chart 10.1
182 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Restructuring of District Debt Over the past few years, the District has accomplished several bond issue refinancing’s. Because of these refinancing’s the District lowered its average annual debt service payments by $2.5 million. Those issues and their respective savings to the District are detailed below: ANNUAL PRESENT VALUE GROSS DATE BOND ISSUE ISSUE SIZE GROSS/CASH SAVINGS/% SAVINGS SAVINGS Refunding Revenue $2,294,000 1/92 $41,810,000 $5,466,000 $273,300 Bonds, Series 1992 5.96% Refunding Revenue $3,328,913 9/93 $48,710,000 $5,017,841 $228,000 Bonds, Series 1993 7.59% Refunding Revenue $4,082,811 12/93 $91,595,000 $8,800,000 $303,500 Bonds, Series 1994 5.28% Forward Interest Rate $2,806,856 5/94 $43,670,000 $4,699,512 $140,000 Agreement (FIRA) 6.43% Refunding Revenue $2,517,468 8/95 $46,585,000 $4,912,155 $233,912 Bonds, Series 1995 5.65% Adj. Rate Tender $2,128,835 1/96 Refunding Revenue $34,670,000 $7,681,820 $307,273 Bonds, Series 1996 6.52% Refunding Revenue $923,747 11/00 $19,170,000 $1,183,858 $98,655 Bonds, Series 2001A 5.19% Adj. Rate Refunding $2,714,420 7/02 Revenue Bonds, Series of $77,095,000 $3,192,852 $122,802 2002A 7.00% Synthetic Fixed Rate $2,546,042 6/04 Refunding Revenue $53,125,000 $3,199,371 $199,961 Bonds, Series 2004B 5.12% Synthetic Fixed Rate $1,891,663 8/05 Refunding Revenue $30,250,000 $2,439,850 $221,805 Bonds, Series 2005A 6.02% Conventional Fixed Rate $303,509 8/05 Refunding Revenue $18,185,000 $6,530,388 $466,456 Bonds, Series 2005C 1.29% Total $504,865,000 $25,538,264 $53,123,647 $2,595,664 Table 10.4 (1) The 2008 A and B Refunding were executed for economic purposes, of which the gain could not be accurately calculated, in order to address the trading performance due to market issues surrounding the auction bonds as well as the related downgrades of the bond insurers. In addition to these bonds, the District also terminated the associated synthetic fixed pay or swap in order to eliminate future interest rate swap risks. In April 2008, the District issued the 2008A and 2008B Series Fixed Rate Refunding Bonds totaling $204,205,000.
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Because of the savings associated with these refinancing’s, the District was able to lower the Rancho Division ad valorem assessment rate from $.36 to $.30 per $100 of assessed land value, and avoided increases to the Santa Rosa Division ad valorem assessment rate. The 1996 issue afforded the District the opportunity to restructure the outstanding debt related to the Santa Rosa Water Reclamation Facility (SRWRF), which created a more efficient matching of revenue streams to debt service cash flows.
Debt Policy and Administration There is no statutory regulation setting debt limitations on the District. The District has adopted its own debt management policies, which determine the objectives and conditions for issuing debt. Per the policy, the District will seek to issue debt only in the case where there is an identified source of repayment. Through the District’s Long Range Financial planning process, borrowing needs are anticipated and revenue streams to repay borrowings are identified. The ability of the revenue streams to meet current and projected borrowing needs determine the bonding capacity of the District. The Long Range Financial Plan ensures that the District will not exceed its current bonding capacity. Total District long-term debt is as follows: YEAR PRINCIPAL INTEREST TOTAL 2017-2021 $38,825,000 $78,795,934 $117,620,934 2022-2026 56,795,000 66,700,484 123,495,484 2027-2031 79,975,001 50,766,747 130,741,748 2032-2036 65,410,003 32,781,054 98,191,057 2037-2041 75,005,001 12,274,611 87,279,612 Totals $316,010,005 $241,318,829 $557,328,834
Table 10.6 identifies the total amount of revenue bonds outstanding as of December 31, 2015.
YEAR ISSUED AMOUNT USES(1) 2002A Series $44,400,005 Water and Wastewater Facilities 2005C Series 18,185,000 Water Facilities 2008A Series 98,145,000 Water and Wastewater Facilities 2008B Series 44,625,000 Water and Wastewater Facilities 2010A Series 100,785,000 Water and Wastewater Facilities 2011A Series 9,870,000 Water Facilities Total $316,010,005 Table 10.6 (1) Water facilities include Wells, ponds, recycled facilities, reservoirs, pump stations, transmission mains, and valves. Wastewater facilities include Plant, lift stations, collections, trunk sewer, and plant improvements.
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The 2016-2017 fiscal year debt service requirements for the above-mentioned obligations are as follows: Interest Description Principal Interest Total Rates(1) 2002A Series 5.00% - $2,220,000 $2,220,000 2005C Series 5.50% 5,730,000 842,600 6,572,600 2008A Series 4.97% 260,000 4,835,000 5,095,000 2008B Series 3.90% - 1,703,336 1,703,336 2010A Series(2) 4.28% - 6,386,745 6,386,74 2011A Series(3) 1.80% - 505,838 505,838 Total $5,990,000 $16,493,519 $22,483,519
Table 10.7 (1) The interest rate represents the average rate per year for the remaining life of the bonds. (2) Rate reflects net of 6.34% taxable rate less 32.5% Federal Subsidy (3) Rate reflects net of 5.125% taxable rate less 65% Federal subsidy.
Likewise, Table 10.8 identifies the total revenue bonds outstanding per Division, together with their corresponding average interest rate at December 31, 2015.
WEIGHTED AVERAGE ANNUAL DIVISION AMOUNT INTEREST RATE Rancho $119,154,899 4.47% Santa Rosa 135,857,685 4.51% Wastewater 60,997,421 4.73% Total $316,010,005 4.54% Table 10.8
185 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Table 10.9 identifies the projected principal payments by Division.
FY Rancho Santa Rosa SRWRF Total 16-17 3,376,352 2,597,188 16,460 5,990,000 17-18 3,558,011 2,735,846 16,143 6,310,000 18-19 3,768,451 2,898,507 18,042 6,685,000 19-20 4,526,461 4,238,936 979,603 9,745,000 20-21 2,141,949 3,723,733 4,229,318 10,095,000 21-22 2,254,310 3,801,826 4,298,864 10,355,000 22-23 3,361,449 3,695,643 3,872,908 10,930,000 23-24 3,571,856 3,808,714 3,979,430 11,360,000 24-25 3,709,425 3,971,419 4,144,156 11,825,000 25-26 3,901,465 4,130,295 4,293,240 12,325,000 26-27 4,104,398 4,295,449 4,450,153 12,850,000 27-28 4,742,654 6,251,791 4,600,555 15,595,000 28-29 4,955,391 6,586,058 4,793,551 16,335,000 29-30 5,179,536 6,981,744 4,998,721 17,160,001 30-31 4,655,945 6,908,182 6,470,873 18,035,000 31-32 4,303,148 4,843,125 6,768,727 15,915,000 32-33 2,255,502 8,548,032 721,466 11,525,000 33-34 2,374,361 8,950,912 754,727 12,080,000 34-35 2,473,411 9,393,465 793,127 12,660,003 35-36 7,488,152 5,622,292 119,556 13,230,000 36-37 7,805,111 5,860,273 124,617 13,790,001 37-38 8,133,390 6,106,752 129,858 14,370,000 38-39 8,475,818 6,363,856 135,325 14,974,999 39-40 8,832,397 6,631,585 141,018 15,605,000 40-41 9,205,956 6,912,062 146,983 16,265,001 TOTAL 119,154,899 135,857,685 60,997,421 316,010,005
186 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Table 10.10 identifies the projected interest payments by Division.
FY Rancho Santa Rosa SRWRF Total 16-17 6,427,698 7,183,430 2,882,391 16,493,519 17-18 6,239,091 7,038,606 2,881,760 16,159,457 18-19 6,039,632 6,885,436 2,881,076 15,806,144 19-20 5,834,073 6,710,930 2,859,541 15,404,544 20-21 5,677,533 6,522,104 2,732,633 14,932,269 21-22 5,567,336 6,333,798 2,519,220 14,420,354 22-23 5,422,309 6,143,691 2,311,596 13,877,595 23-24 5,260,536 5,964,949 2,127,026 13,352,512 24-25 5,092,565 5,780,754 1,937,472 12,810,790 25-26 4,916,320 5,586,295 1,736,617 12,239,233 26-27 4,731,046 5,384,222 1,528,719 11,643,987 27-28 4,525,245 5,128,420 1,313,671 10,967,336 28-29 4,299,995 4,815,341 1,091,534 10,206,869 29-30 4,064,545 4,484,240 859,998 9,408,783 30-31 3,824,263 4,137,802 577,707 8,539,772 31-32 3,648,647 3,870,642 281,686 7,800,975 32-33 3,543,419 3,567,079 147,233 7,257,731 33-34 3,396,722 3,106,366 109,834 6,612,922 34-35 3,243,120 2,623,425 70,621 5,937,165 35-36 2,927,488 2,198,031 46,740 5,172,259 36-37 2,442,921 1,834,206 39,004 4,316,131 37-38 1,937,909 1,455,031 30,941 3,423,881 38-39 1,411,647 1,059,900 22,538 2,494,085 39-40 863,236 648,139 13,782 1,525,157 40-41 291,691 219,009 4,657 515,357 TOTAL 101,628,987 108,681,845 31,007,997 241,318,829
187 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Bond Ratings Rancho California Water District’s historically sound financial and operational management has allowed it to achieve excellent credit scores from all three of the municipal rating agencies. The District’s credit ratings as of December 31, 2015 are as follows: Moody’s bond ratings range from Aaa (highest quality) to C (lowest quality) for long-term obligations. Moody’s applies numerical modifiers 1-high, 2-mid, and 3-low in each generic rating classification from Aa to Caa. Standard & Poor’s top four bond rating categories (AAA, AA, A, BBB) generally are regarded as eligible for bank investment (AAA is the highest rating). Fitch uses a rating system very similar to that of Standard & Poor’s. A “+” or “–” may be appended to ratings by Fitch to denote relative status within a Aa2 AA+ major rating category. Fitch also considers the historical and prospective financial condition, quality of management, operating performance of the issuer AA+ and of any guarantor, any special features of a specific issue or guarantee, the issue’s relationship to other obligations of the issuer, as well as developments in the economic and political environment that might affect the issuer’s financial strength and credit quality.
Water Facilities – Rate Recommendations Ad Valorem Rates As is demonstrated in the financial models of the plan, it is recommended that assessment rates be maintained at the current levels for the fiscal year 2016-2017 for both the Rancho and Santa Rosa Divisions, as follows: . Rancho Division - $0.30 per $100 of assessed land value only
. Santa Rosa Division - $0.50 per $100 of assessed land value only
Water Standby Charges For the 2016-2017 fiscal year, it is recommended that the standby charges remain at current levels as follows: Santa Rosa Water Area 1 - Parcels with a water meter shall be charged $69.92 per acre or per parcel if less than one acre. Area 1A- Parcels without water service shall be charged $69.92 per acre or per parcel if less than one acre for the first 40 acres, and $62.10 per acre for the remaining acres. Area 2- All Parcels shall be charged $48.00 per acre or per parcel if less than one acre. Area 3- All Parcels shall be charged $23.50 per acre or per parcel if less than one acre.
Water Capacity Fee The District has taken significant steps to create a capacity fee program that equitably allocates capital between existing and future users and complies with the requirements of AB 1600. AB 1600 regulates the way that impact fees are imposed on development projects. The agency imposing the fees must (1) identify
188 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
the purpose of the fee; (2) identify the use to which the fee is to be put, including identifying the public facilities to be financed; (3) show the reasonable relationship between the public facility to be constructed and the type of development; and (5) account for and spend the fees collected only for the purposes and projects specifically used in calculating the fee. Historically the method for determining capacity fees was based upon an incremental cost-pricing method. As the District matures the method used for determining the capacity fee must transition to a system buy-in method. Therefore, water capacity fees are currently supported by a combined method until build out is reached and a pure system buy-in method is utilized. The District completed a comprehensive capacity fee study in 2012, which indicates an increase in the fee is needed. The fee is therefore being increased by the ENR index of 2% for all meter sizes in the Rancho Division and Santa Rosa Division for the 2016-2017 fiscal year.
Wastewater Facilities For purposes of this plan, the wastewater facilities are considered on a phase-by-phase approach. Various phases of construction have occurred to achieve requirements for 5.0 mgd wastewater flow for which the District has issued Certificates of Participation and Revenue Bonds. This equates to a current utility plant asset value of $63 million in wastewater treatment facilities at the Santa Rosa Water Reclamation Facility. Over the last few years, the District has been working with its contract agencies to determine ultimate capacity needs of the Santa Rosa Water Reclamation Facility (SRWRF). It finalized this effort in the formation of the Santa Rosa Regional Resources Authority (SRRRA), a Joint Powers Authority (JPA), in November 2015 when it and the contract agencies agreed upon set ultimate capacity needs broken down by primary/secondary treatment, tertiary treatment, and trunk sewer system. These capacity needs are basis of capital cost allocation responsibilities of each member agency including the District. The SRRRA JPA is expected to approve the SRWRF rehabilitation project, estimated in total at $25.6 million, in the FY2016- 2017 capital improvement project budget. This project incorporates multiple major rehabilitation efforts over several plant processes that will significantly extend useful life and energy efficiency while continuing to utilize the sequencing batch reactor treatment process. The SRRRA is expected to obtain a loan from the State Revolving Fund in FY2016-2017 to finance this effort. The LRFP incorporates the near term and long-term capital needs to accomplish the rehabilitation. In 2008, the District completed its initial Sewer System Management Plan and this plan was updated in 2013 in accordance with State regulations. During fiscal year 2009-2010, RCWD initiated an annual program to perform a video survey and condition assessment of its wastewater collection system. This annual program concluded that the District’s wastewater collection system is in good condition. Revenue Sources The District has four revenue sources from which to fund wastewater facilities. These revenue sources are as follows: . Capacity fees; . Standby assessments; . Monthly wastewater debt service charge; and . Developer contributions. Capacity fees are the primary revenue source for the funding of wastewater facilities. There are two secondary revenue sources, monthly debt service charges and standby charges, which fund any shortfalls in the primary revenue source. The operations and maintenance cost are paid by monthly service charges and are not part of the capital budget. Currently, the plant is processing 2.6-mgd of permanent flows, which is
189 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
approximately 52% of its current capacity. The portion of the plant capacity that is in reserve for future- benefiting users creates a financial burden that is directly tied to the availability of the service. In order to arrive at an equitable apportionment of cost and benefit, it is necessary that an annual standby charge be levied on those properties that have not paid their proportionate share of the capital costs of this facility. The District has currently received capacity fees for approximately 17,528 EDU’s, or 56% of the plant capacity, and is bearing the risk for the remaining 44% of uncovered capacity. As capacity fees are received in the future, the risk to the District caused by growth slow-downs and for debt service requirements, decreases correspondingly.
Wastewater Facilities – Rate Recommendations Wastewater Capacity Fees During fiscal year 1995-1996, the District restructured the outstanding debt related to the SRWRF, which created a more efficient matching of revenue streams to debt service cash flows. This allowed the District to lower and hold wastewater capacity fees at a constant amount for ten years until fiscal year 2005-2006 when they were raised 10% from $3,724 per EDU to $4,105 per EDU. As demonstrated by the financial models of the plan, estimated future annual wastewater capacity fee increases of 8% to 10%, are required. It is recommended that the wastewater capacity fee be increased by 8% to $9,568 for fiscal year 2016-2017. In the formation agreements of the SRRRA, the District and other member agencies agreed to supersede prior cost sharing arrangements with respect to capital and debt service cost, and have agreed to pro-rata share these costs based on the ultimate capacity needs of each agency. The agreed upon cost share allocations are noted in the table below. The District is currently receiving and responsible for the costs associated with the tertiary water flows from Western.
PRIMARY & SECONDARY TERTIARY TREATMENT TRUNK SEWER TREATMENT
Based on Ultimate Based on Based on Ultimate Member Agency Flow/Capacity Engineering Recycled Water Amounts Requirements Analysis Elsinore MWD 40% - 2.0 MGD 40% - 2.0 MGD 43.57%
Rancho (RCWD) 40% - 2.0 MGD 52% - 2.6 MGD 36.61%
Western MWD 20% - 1.0 MGD 8% - 0.4 MGD 19.82%
Furthermore, the SRRRA is obligated through these agreements to purchase the SRWRF upon successful completion of obtaining its own debt financing which would shift the debt service and costs from being in the name of the District to the JPA. This is anticipated to occur in the FY2016-2017. The District will be responsible for its allocated share of the cost when the debt and SRWRF assets transfer. This is reflected on the non-operating statement as “JPA Capital Cost Share (CS)”. Until this time, the SRRRA will be responsible to pay the District the other member agencies’ share of the debt and capital costs. This amount is reflected on the non-operating statement as “Cost Share (CS) from JPA”. Wastewater Standby Charges The current levy of a standby charge for properties that have not paid a capacity fee is $28.50 per acre or per parcel if less than one acre. It is recommended that the levy of a standby charge remain at $28.50 per acre or
190 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
per parcel if less than one acre for fiscal year 2016-2017 on all land that has not paid a capacity fee as of March 1, 2016.
Wastewater Replacement Charge Wastewater Division customers pay $4.00 per EDU per month towards facility replacement. This revenue is the primary source for funding wastewater facility replacement. For fiscal year 2016-2017, it is recommended that the replacement charge remain at $4.00 per EDU per month.
Wastewater Debt Service Charge A wastewater debt service charge was implemented in fiscal year 2007-2008. This charge provides another revenue stream for debt service and adds more stability and reliability to the financial plan. For fiscal year 2016-2017, it is recommended that the debt service charge increase to $9.50 per EDU per month. Table 10.11 identifies the total wastewater monthly rate per EDU.
ALLOCATION FISCAL YEAR 2015-16 FISCAL YEAR 2016-2017 Operations & Maintenance $25.50 $25.25 Replacement 4.00 4.00 Debt Service 9.25 9.50 Total $38.75 $38.75 Table 10.9
Water Reclamation, Treatment and Distribution Facilities Recycled water has been identified as a critical resource to RCWD as it relates to the District’s ability to meet future water demand requirements and for which the District has made a substantial investment of $52 million. The questions arising during discussion of the funding of water reclamation treatment facilities are “Who bears the burden for these facility costs?” and, “Are water reclamation facilities the responsibility of the wastewater generator or the end-user of recycled water resources?” The District’s Water Resources Master Plan identifies recycled water as one of the required resources to meet ultimate water demands. The use of recycled water offsets the need for import water or water production facilities in the future. Therefore, the financing of recycled water advance treatment, storage, and distribution facilities has been included in the water divisions’ capital plans. The cost of advanced treatment facilities will be funded at 70% for the Rancho Division and 30% for the Santa Rosa Division. This allocation is based upon the projected ultimate use of recycled water. The costs of recycled water distribution facilities are funded based upon the direct benefit of these facilities to each division.
191 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Capital Projects Capital facilities are potable water, recycled, and wastewater infrastructure related projects that require a longer time to build and to complete, have a longer estimated life and have costs well exceeding $2,000. Capital facilities include reservoirs, pipelines, wells, transmission mains, and pump stations. Budget appropriations for major capital projects continue from year to year until each project is completed. All capital facilities are funded by bond funds or cash reserves of the District. District cash reserves can be capacity fee funds, replacement funds or debt service funds. Capacity fee funds are one-time capital charges assessed against new development as a way to provide or cover a proportional share of the costs of capital facilities constructed or to be constructed. The fee incorporates a component that recognizes that existing users have developed and maintained the utility system to accommodate growth and incorporates a component that recognizes the cost of additional facilities that provide incremental capacity to accommodate growth. Replacement funds are used for those projects that renew or replace existing facilities that have deteriorated or have exceeded their useful life and are funded from user rates. Debt Service Construction funds are used for new projects and/or replacement facilities as approved by the Board of Directors.
Classification of Improvements The Capital Improvement Program (CIP) is separated by the District’s divisional structure and by major and minor capital projects. Major capital projects are projects that exceed $35,000 in cost, have long-term life spans (greater than two years), and are generally nonrecurring (not maintenance work). A major capital project is facility-related and generally consists of: . Construction of a new facility, i.e. a pipeline, reservoir, or pump station, etc.; . Addition to, or expansion or replacement of an existing facility; . Nonrecurring rehabilitation or betterment to a facility which extends the asset life of the facility or improve its functionality, i.e., reservoir recoatings, etc.; . Acquisition of land for a public purpose; . Asset management program activities; and . Specific planning, engineering study, or design work related to a project. Minor capital projects are facility-related capital projects with a cost of $35,000 or less. Furthermore, minor capital projects include planned improvement projects that cost greater than $2,000, are generally nonrecurring, and have a life span of greater than two years. The difference between a major capital project and a planned improvement project is the planned improvement project does not extend the life of a facility asset. As such, these projects typically represent a report or replacement activity that restores an asset component to its original condition, extends the useful life of the asset component, or improves its functionality. Planned improvement projects do not include planned or preventative maintenance projects. Planned improvement projects generally consist of: . Replacement or the installation of new pipeline appurtenances; . Replacing a reservoir sacrificial anodes; . Replacing pumping unit components, i.e., pump bowl assemblies, pump seals, etc.; . Replacing electrical/instrumentation components; and . Sewer manhole coating and repairs.
192 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Project Prioritization The aforementioned categories are then grouped in order to prioritize the projects based on the following ranking:
RANKING PRIORITY RECOMMENDATION Recommended to be included in the scheduled fiscal year CIP program to satisfy the 1 District’s goals and objectives. Recommended to be included in the scheduled fiscal year CIP Program, but can be 2 deferred with additional risk and/or cost to the District. Recommended to be included in the scheduled fiscal year CIP program, but can be 3 deferred if adequate funding is not available. Not recommended to be included in the fiscal year CIP program. Typically, these projects 4 are not included in the fiscal year CIP program because they were already vetted and removed during staff’s CIP planning process.
For fiscal year 2016-2017, a total of $34,045,000 has been budgeted for the Districts CIP.
The following table identifies the Districts previous CIP Budgets for the last 10 years. Rancho Santa Rosa Wastewater Total Fiscal Year Division CIP Division CIP Division CIP 2007-2008 5,104,500 3,585,500 200,000 8,890,000 2008-2009 8,008,250 4,566,750 193,000 12,768,000 2009-2010 7,972,750 3,497,250 315,000 11,785.000 2010-2011 5,157,000 11,998,000 1,100,000 18,255,000 2011-2012 4,802,500 3,760,500 416,000 8,979,000 2012-2013 5,411,000 3,932,000 1,160,000 10,503,000 2013-2014 10,985,250 3,398,750 1,875,000 16,259,000 2014-2015 10,879,719 3,256,282 1,235,000 15,371,000 2015-2016 9,343,350 3,192,650 2,987,000 15,523,000 2016-2017 16,517,500 17,487,500 40,000 34,045,000 Table 10.12
193 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Impact of Capital Improvement Projects The Project Summary sheets provide detailed information on the District’s significant non-recurring projects, which are defined, as those projects with budgets of at least $1 million. The projects, which meet these criteria and represent 74% of budgeted CIP expenditures for Fiscal Year 2016-2017 is:
FY 2016-2017 BUDGETED EXPENDITURES PROJECT
$4,100,000 Well No. 125 Replacement
$3,900,000 Pond No. 1-2 lining
$3,700,000 Well No. 102 Wellhead Treatment
$3,600,000 Well No. 124 Replacement
$2,990,000 Ace Bowen PS Disinfection Improvement
$2,500,000 Regional VDC Pump Station & CCT
$2,300,000 Pond No. 3 Lining
$2,020,000 Senga Doherty PS Disinfection Improvement Table 10.13
194 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Major Capital Project List
RANCHO DIVISION Est. Cost Classification Priority
Reservoir Recoating Interior: Ace Bowen No. 1 $600,000 R&R 3.35 De Portola No. 2 $750,000 R&R 3.59 Exterior: El Chimisal No. 2 $225,000 R&R 4.19 Norma Marshall $165,000 R&R 3.62
Pump Systems Asset Management Plan (AMP) Development/Implementation $110,000 FP n/a
Mechanical Piping Systems and Controls AMP Development/Implementation $300,000 FP n/a
RANCHO DIVISION MAJOR CAPITAL TOTAL $2,150,000 Est. Cost Classification Priority SANTA ROSA DIVISION
Reservoir Recoating Interior: Via Vaquero No. 1 $975,000 R&R 3.72 Pump Station Repairs/Modifications Ace Bowen Ps Disinfection Improvement $2,990,000 OEI 1.64 Senga Doherty PS Disinfection Improvement $2,020,000 OEI 1.94 Pump Systems AMP Development/Implementation $250,000 FP n/a Mechanical Piping Systems and Controls AMP Development/Implementation $250,000 FP n/a
SANTA ROSA DIVISION MAJOR CAPITAL TOTAl $6,325,000 Est. Cost Classification Priority RESOURCE DIVISION
Well Construction Well 124 $3,600,000 R&R 2.41 Well 125 $4,100,000 R&R 2.58 Well Repairs/Modifications Well 102 $3,700,000 REG 2.65 Common Water Facilities Vail Dam Modifications $500,000 REG 2.61 Regional VDC Pump Station & CCT $2,500,000 WR 1.01 Well Asset Land Acquisition Plan $300,000 FP n/a
195 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Common Recycled Facilities Pond No. 1-2 Lining $3,900,000 R&R 2.99 Pond No. 3 Lining $2,300,000 R&R 2.79 Recycled Water Resource Plan $300,000 FP n/a Common Recycled/Non-Potable Facilities PS AMP Development/Implementation $80,000 FP n/a Common Recycled/Non-Potable Facilities Mechanical Piping Systems and Controls AMP
Development/Implementation $220,000 FP n/a Vail Properties Studies Vail Lake Recreation & Operations Plan and Water Quality Monitoring Plan Update $100,000 FP n/a
RESOURCE DIVISION MAJOR CAPITAL TOTAL $21,600,000 Est. Cost Classification Priority WASTEWATER DIVISION
Wastewater Division Major Capital Total $0
TOTAL FY 2016-2017 PROJECT COSTS $30,075,000
196 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Minor Capital Project List
Rancho Division Est. Cost Classification Pump Station Repairs/Modifications Mechanical Replace Existing Pump Bowls $30,000 R&R Replace Pump Control Valves Calle Breve (4 pump units) $80,000 OEI Alvarez (3 pump units) $60,000 OEI Caballos (3 pump units) $60,000 OEI Replace Pump Seals On site (location to be determined) $30,000 R&R
Well Repairs/Modifications Well Casing Well Casing Rehabilitation Three Sites (Location TBD) $270,000 R&R Mechanical Replace Pump & Motor Three Sites (Location TBD) $400,000 R&R Electrical/Instrumentation: Replace MCC/Arc-Flash Compliant Wells 211 and 235 $160,000 REG Replace Well Level Sensors Well 203 $2,000 R&R Distribution System Mainline Valve New Installation/Replacement $250,000 OEI Appurtenance New Installation/Replacements Av/AR, Blow-off/Hydrant, CP Test Station/Anode $150,000 OEI
Facility Relocations Misc. Unknown Relocations $50,000 REG RANCHO DIVISION MINOR CAPITAL TOTAL $1,542,000
197 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Santa Rosa Division Est. Cost Classification Well Repairs/Modifications Electrical Instrumentation: Replace MCC/Arc-Flash Compliant Well 309 $80,000 REG Pump Station Repairs/Modifications Mechanical Replace Existing Pump Bowls (2 pump units) $30,000 R&R Joaquin Ranch PS (3 pump units) $72,000 OEI Cal Oaks PS (6 Pump Units) $120,000 OEI Replace Pump Seal -One Site (location to be determined) $30,000 OEI Electrical/Instrumentation: Replace Motor Starter California Oaks (2 pump units) $40,000 OEI Avenida Escala (2 pump units) $30,000 OEI Bear Creek (2 pump units) $40,000 OEI Del Oro (4 pump units) $60,000 OEI Freeman (4 pump units) $40,000 OEI Distribution System Mainline Valve New Installation/Replacement $250,000 OEI Appurtenance New Installation/Replacements AV/AR, Blow-off/Hydrant, CP Test Station/Anode $150,000 OEI Water Quality Sample Stations (7 sites) $90,000 OEI
Facility Relocations Misc Unknown Relocations $25,000 REG
SANTA ROSA DIVISION MINOR CAPITAL TOTAL $1,057,000
198 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Resource Division Est. Cost Classification
Well Repairs/Modifications Well Casing Well Casing Rehabilitation Three Sites (Location TBD) $270,000 R&R Mechanical Replace Pump & Motor Three Sites (Location TBD) $400,000 R&R Electrical/Instrumentation: Replace MCC/Arc-Flash Compliant Wells 118, 126, 138, 139, 140, 149, 151, and 156 $640,000 REG Replace Well Level Sensors Wells 106, 108, 119, 122, 128, 130, 131, 139, 140, 141 $21,000 R&R 143, 144, 149, and 156
RESOURCE DIVISION MINOR CAPITAL TOTAL $1,331,000
Wastewater Division Est. Cost Classification
Sewer Collections System Repairs Force Main Av/AR Replacement $40,000 R&R
WASTEWATER DIVISION MINOR CAPITAL TOTAL $40,000
TOTAL FY 2016-2017 PROJECT COSTS $3,970,000
199 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Capital Project Funding Breakdown
2016-2017 CAPITAL PROJECTS DIVISIONAL ALLOCATION
Rancho Santa Rosa Resource Wastewater
Major Capital Projects $2,150,000 $6,325,000 $21,600,000 $0 Minor Capital Projects 1,542,000 1,057,000 1,331,000 40,000 Sub-Total Capital Projects 3,692,000 7,382,000 22,931,000 40,000
Resource Major Capital Reallocated 12,160,000 9,440,000 (21,600,000)
Resource Minor Capital Reallocated 665,500 665,500 (1,331,000)
GRAND TOTAL CAPITAL PROJECTS $16,517,500 $17,487,500 $ - $40,000
FISCAL YEAR 2016-2017 CAPITAL PROJECT TOTALS
Debt Service/Capital General Fund Improvement Fund Replacement Fund Total
Rancho $16,517,500 $16,517,500 Santa Rosa 17,487,500 17,487,500 Wastewater 40,000 40,000
TOTAL $34,045,000
2016-2017 CAPITAL EXPENDITURES SUMMARY
$40,000
$9,002,000
$25,003,000
New Water Facilities Facility Replacement Wastewater Facilities
200 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-01
Project Reservoir Recoating Division Rancho Division Funding $1,740,000 Amount
PROJECT DESCRIPTION
This project recoats the interior of two reservoirs and the exterior of two reservoirs.
JUSTIFICATION
The normal interior and exterior coating life of the District’s steel reservoirs is 10 to 15 years. Previously, the District used an interior coating system of three coats of epoxy. The current interior coating system consists of a single-coat, high-build polyurethane for the reservoir bottom and shell, and a two-coat, high-build epoxy for the reservoir knuckle and roof structure, in compliance with American Water Works Association (AWWA) Specifications.
EXPENDITURE SCHEDULE
Planned Expenditure
Project 2016 2017 2018 2019 2020 Total Reservoir $1,740,000 $1,740,000 Recoating
OPERATIONAL COST IMPACTS
The completion of this project will have no affect on operation costs.
PROJECT BACKGROUND
Ace Bowen Reservoir No. 1 (Capacity = 2.7 MG, Shell Height = 32.0 ft and Shell Diameter = 120.0 ft) is located at 29025 Via Santa Rosa. This reservoir was originally constructed in 1980, and the interior surface was last recoated in 2004. A dive inspection documented the reservoir’s interior condition in 2015. Due to the deteriorating condition of the interior roof and floor areas, staff proposes to recoat the interior reservoir surface. Staff is also proposing to install sacrificial anode systems at this reservoir. Sacrificial anodes provide cathodic protection for all surfaces in contact with water and are intended to extend the functional life of the coating system. The estimated cost of the interior recoating of Ace Bowen Reservoir No. 1 is $600,000.
201 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
De Portola Reservoir No. 2 (Capacity = 3.2 MG, Shell Height = 32.0 ft and Shell Diameter = 130.0 ft) is located at 40110 Via Cordova. This reservoir was originally constructed in 1983, and the interior surface was last recoated in 2002. A dive inspection documented the reservoir’s interior condition in 2012. Due to the deteriorating condition of the interior roof and floor areas, staff proposes to recoat the interior reservoir surface. Staff is also proposing to install a sacrificial anode and active mixing systems at this reservoir. Sacrificial anodes provide cathodic protection for all surfaces in contact with water and are intended to extend the functional life of the coating system. The active mixing system avoids stratification of the stored water, aiding in overall water quality and prolonging the life of adequate chlorine residual, in particular, during periods of low demand. The estimated cost of the interior recoating of De Portola Reservoir No. 2 is $750,000.
El Chimisal Reservoir No. 2 (Capacity = 6.3 MG, Shell Height = 32.5 ft and Shell Diameter = 182.0 ft) is located at 34695 El Mirador Court. This reservoir was originally constructed in 2003, and the exterior surface has never been recoated. Due to the deteriorating condition of the exterior coating, as evidenced by chalking, staff proposes to recoat the exterior with a polyurethane and epoxy coating, in compliance with AWWA Specifications. The estimated cost of the exterior recoating of El Chimisal Reservoir No. 2 is $225,000.
Norma Marshall Reservoir (Capacity = 4.8 MG, Shell Height = 32.0 ft and Shell Diameter = 160.0 ft) is located at 41520 Margarita Road. This reservoir was originally constructed in 1982, and the exterior surface was recoated in 2005. Due to the deteriorating condition of the exterior coating, as evidenced by chalking and poor adhesion, staff proposes to recoat the exterior with a polyurethane and epoxy coating, in compliance with AWWA Specifications. The recoating will be of the shell only, as the roof was recoated in 2015 due to advanced deterioration and delamination of the roof coating. The estimated cost of the exterior recoating (shell only) of Norma Marshall Reservoir is $165,000.
202 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-02
Project Reservoir Recoating Funding Santa Rosa Division Division Funding $975,000 Amount.
PROJECT DESCRIPTION
This project recoats the interior of one reservoir.
JUSTIFICATION
The normal interior and exterior coating life of the District’s steel reservoirs is 10 to 15 years. Previously, the District used an interior coating system of three coats of epoxy. The current interior coating system consists of a single-coat, high-build polyurethane for the reservoir bottom and shell, and a two-coat, high-build epoxy for the reservoir knuckle and roof structure, in compliance with American Water Works Association (AWWA) Specifications.
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Reservoir $975,000 $975,000 Recoating
OPERATIONAL COST IMPACTS
The completion of this project will have no effect on operation costs.
PROJECT BACKGROUND
Via Vaquero Reservoir No. 1 (Capacity = 5.6 MG, Shell Height = 31.0 ft and Shell Diameter = 175.0 ft) is located at 43175 Via Barranca. This reservoir was originally constructed in 2002, and the interior surface has never been recoated. A dive inspection documented the reservoir’s interior condition in 2013. Due to the deteriorating condition of the interior roof and floor areas, staff proposes to recoat the interior reservoir surface. Staff is also proposing to install sacrificial anode systems and active mixing systems at this reservoir. Sacrificial anodes provide cathodic protection for all surfaces in contact with water and are intended to extend the functional life of the coating system. The active mixing system avoids stratification of the stored water, aiding in overall water quality and prolonging the life of adequate chlorine residual, in particular, during periods of low demand. The estimated cost of the interior recoating of Via Vaquero Reservoir No. 1 is $975,000.
203 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-03
Project Well 124 Replacement
Resource Division Funding 50% Rancho Source 50% Santa Rosa Funding $3,600,000 Amount
PROJECT DESCRIPTION
This project involves replacing Well No. 124, including the design and construction of the drilling and equipping of this replacement well.
JUSTIFICATION
Replacing Well No. 124 provides a sustainable water supply to the District, and ensures future capacity and resiliency for the groundwater basin. Well No. 124 groundwater production is from the Pauba Valley Hydrogeologic Subunit, producing from the deeper Temecula Arkose formation. The annual supply capacity of the District’s groundwater sources is limited by the natural yield of the groundwater basin, in conjunction with the artificial groundwater recharge the District achieves at the Valle de los Caballos (VDC) recharge basins. In Fiscal Year 2016/2017 the Pauba Valley Hydrogeologic Subunit producing from the Temecula Arkose formation has a projected annual production budget of 6,800 acre-feet (AF) per year (AFY) [including both native and artificial recharge], of which approximately 6.6 percent or 450 AFY had been historically produced by Well No. 124.
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Well 124 Replacement $1,440,000 $1,440,000 $720,000 $3,600,000
OPERATION COST IMPACTS
The completion of this project will replace lost production of lower cost local groundwater supplies. The District values production from this well at a $768/AF savings compared to purchasing Tier I treated import water from MWD, which represents an annual savings of $345,600, based on the historical annual production rate of 450 AFY. No increased staff labor will result from the proposed well replacement.
204 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
PROJECT BACKGROUND
Well No. 124 was constructed in 1986 and completed to a depth of 982 feet below ground surface with a louver screen perforated 12-inch diameter steel casing having a 55-foot cement grouted sanitary seal. Over the life of this well, pumping flow rates have varied with flow rates as high as 1,000 gpm, and annual production amounts as high as 676 AFY over the past 15 years. Documented problems began after 10 years of operation as the well is crooked, with a bend in the casing at 300 to 400 ft. Shafts and couplings were breaking at different levels on the line shaft. In 1999, a larger tube and shaft were installed to alleviate breakage problems. This worked for 6 years, although the above-ground assembly (motor and water box) shook uncontrollably because of the line shaft being in a bind in a well that had a bend in the casing. Well No. 124 also had lost its ability to produce more than 500 gpm due to declining static water levels. This well was throttled back, continued to shake, and produced a reliable 500 gpm. Because the well also produced calcium carbonate at high levels, the in-line check valve finally failed from build-up and the result was water going back down the well in higher velocities than anticipated when the well shut off. The tube unscrewed and the line shaft bound up and failed. The motor was destroyed internally and scrapped. In 2008, when a hole in the casing was patched at 240 feet, a submersible pump and motor were placed in Well No. 124, in hopes of alleviating the shaft problems. In 2013, the motor failed, was rehabilitated, and subsequently failed again in 2014.
205 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-04 Replacement of Well No. Project 125 Resource Division Funding 50% Rancho Division 50% Santa Rosa Project No. $4,100,000
PROJECT DESCRIPTION
This project involves replacing Well No. 125, including the design and construction of the drilling and equipping of this replacement well.
JUSTIFICATION
Replacing Well No. 125 provides a sustainable water supply to the District, and ensures future capacity and resiliency for the groundwater basin. Well No. 125 groundwater production is from the Pauba Valley Hydrogeologic Subunit, producing from the deeper Temecula Arkose formation. The annual supply capacity of the District’s groundwater sources is limited by the natural yield of the groundwater basin, in conjunction with the artificial groundwater recharge the District achieves at the Valle de los Caballos (VDC) recharge basins. In Fiscal Year 2016/2017, the Pauba Valley Hydrogeologic Subunit producing from the Temecula Arkose formation has a projected annual production budget 6,800 acre-feet (AF) per year (AFY) [including both native and artificial recharge], of which approximately 7.4 percent or 500 AFY had been historically produced by Well No. 125.
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Well 125 $1,640,000 $1,640,000 $820,000 $4,100,000 Replacement
OPERATION COST IMPACTS The completion of this project will replace lost production of lower cost local groundwater supplies. The District values production from this well at a $768/AF savings compared to purchasing Tier I treated import water from MWD, which represents an annual savings of $384,000, based on the historical annual production rate of 500 AFY. No increased staff labor will result from the proposed well replacement.
PROJECT BACKGROUND
Well No. 125 was constructed in 1986 and completed to a depth of 990 feet below ground surface with a louver screen perforated 12-inch diameter steel casing having a 55-foot cement grouted sanitary seal.
206 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Over the life of this well, pumping flow rates have varied with flow rates as high as 2,000 gpm, specific capacities as high as 24 gpm/foot, and annual production amounts as high as 1,300 AFY over the past 15 years. In April of 2011, the well was taken offline due to water quality problems concerning high bacteriological presence. An extensive rehabilitation effort began to correct the problem, using both chemical and mechanical methods. During the first stage of the work, a dynamic flow profile and chemical balance analysis was done by Besst Inc. to determine the relationship of production and the high heterotrophic plate count (HPC) throughout the louvered section of the well. The well was then pulled and cleaning began on the well casing. A series of large to medium holes were discovered in the casing during cleaning with intrusion of gravel pack material into the casing. The holes were discovered at well depths between 835 feet to 990 feet below ground surface (bgs). The well profile had shown the majority of the bacteriological presence affecting the well was below 700 feet. Instead of removing the fill material, the bottom of the casing was capped at 700 feet bgs. In addition, a patch was installed where the casing reduced from 16-inch to 12-inch at 400 feet bgs to repair another large hole. Because of the deteriorated condition of the louvered section of the casing from 400 feet to 700 feet bgs, all mechanical methods of rehabilitation ceased and the chemical rehab was continued to eliminate the high HPC. When completed, the well was sampled and again failed the HPC test in accordance with California Health Department requirements. Since that time, the well has not been re-equipped and remains offline. A site evaluation will be completed as part of this project to confirm siting a replacement well at the existing site versus an alternate site. The evaluation will consider possible regional groundwater contamination from local surface issues adjacent to the water well. Pending findings from local groundwater quality evaluations, the District will then consider replacement of Well No. 125 at an alternative location, as shown in the location map below.
207 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-05 Well No. 102 Wellhead Project Treatment System Resource Division Funding 50% Rancho Division 50% Santa Rosa Funding $3,700,000 Amount.
PROJECT DESCRIPTION
This project involves the construction of a wellhead treatment system for the water produced by Well No. 102, as well as a connection of the well discharge pipeline to the potable water system.
JUSTIFICATION
Well No. 102 has levels of Manganese (Mn) greater than five times the California Department of Public Health (CDPH) secondary maximum contaminant level (MCL). These levels are reflective of Mn concentrations within this hydrogeologic subunit. Recently, RCWD was mandated to mitigate the elevated Mn concentrations at the two existing potable water wells (Well Nos. 101 and 118) within this hydrogeologic subunit and, as such, the CDPH granted a temporary use permit allowing RCWD time to develop a plan for remedial action. The key factors contributing to the recommendation for improving Well No. 102, as the first priority over Well Nos. 101 and 118, are production capability, location within District property, available space for treatment system improvement, and the better condition of Well No. 102 as opposed to Well No. 118.
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Well 102 Wellhead $1,850,000 $1,850,000 $3,700,000 Treatment
OPERATION COST IMPACTS The completion of this project will sustain production of lower cost local groundwater supplies. As concluded in the 2013 Wellhead Treatment Strategy and Preliminary Design Report, there will be increased operation and maintenance costs resulting from the proposed wellhead treatment, but these costs are offset by the anticipated water production cost savings.
PROJECT BACKGROUND
208 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
An engineering study under the job title, Well Treatment Strategy and Preliminary Design Project (Project Nos. D1570 and D1579), was completed in early January 2013 by Tetra Tech Inc. involving field testing, engineering evaluation, and preparation of a preliminary design for a well treatment strategy and preliminary design. The preliminary design effort would serve to form the basis for final project design and equipment procurement for well improvements within the Murrieta, Santa Gertrudis, and Lower Mesa Hydrogeologic Subunits. The subject projects’ focus was on six wells (Well Nos. 101, 102, 118, and 121) due to the criticality of their production capacity currently being impacted by various water quality issues. The water quality issues are primarily iron, manganese, arsenic, and hydrogen sulfide. The goal of the projects was to develop an optimized strategy for continued and/or expanded production of high quality local supply from these hydrogeologic subunits. Among several recommendations, the study recommended that Well No. 102 be equipped with an on-site Mn wellhead treatment facility to ensure continued groundwater production from the South Murrieta Hydrogeologic Subunit. Therefore, at its February 14, 2013 regular meeting, RCWD’s Board of Directors approved funding for the rehabilitation and final design of wellhead treatment for Well No. 102. District staff have proceeded forward to complete final design for construction of wellhead treatment for Well No. 102
209 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-06 Centralized Pumping and Disinfection Project Improvements at Upper VDC Recharge/Recovery Facility Resource Division Funding 50% Rancho Division Division 50% Santa Rosa Division Funding $16,150,000 Amount.
PROJECT DESCRIPTION
This project involves the design and construction of centralized pumping and disinfection facilities at the Upper Valle de los Caballos Recharge/Recovery Facility (UVDCR/RF), including:
o Regional 1305/1380 Pump Station; o On-Site Generation (OSG) Facility; o Chlorine Contact Tank (CCT); o Approximately 4,000 ft of 48-inch diameter pipeline for replumbing of well discharge pipelines to centralized disinfection facility; o Approximately 250 ft of 36-inch diameter pipeline from Regional 1305/1380 Pump Station to 1305 Pressure Zone; and o Approximately 250 ft of 30-inch diameter pipeline from Regional 1305/1380 Pump Station to 1380 Pressure Zone.
JUSTIFICATION
As summarized in the 2012 Upper VDC Conjunctive Use Optimization Study, centralized pumping and disinfection facilities at the UVDCR/RF will allow the District to increase its water production from the UVDCR/RF. The District’s existing annual artificial recharge is approximately 13,000 acre-feet (AF) per year (AFY), with a peak flow rate of approximately 11 cfs.
Increasing recharge and recovery at the UVDCR/RF, and consequently decreasing the quantity of purchased Metropolitan Water District of Southern California (MWD) treated water, results in a minimum net savings of $174/AF. If raw water is purchased and banked in a wet year, the savings could be $308/AF, with savings as high as $902/AF if water naturally collected in Vail Lake was released and recharged.
The UVDCR/RF also provides for a level of resiliency, as banked groundwater or Vail Lake water would be available during dry weather periods if MWD imposes mandatory reductions.
210 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Centralized Pumping and Disinfection $2,500,000 $6,825,000 $6,825,000 $16,150,000 Improvements
OPERATION COST IMPACTS Increasing recharge and recovery at the UVDCR/RF, and consequently decreasing the quantity of purchased MWD treated water, results in a minimum net savings of $174/AF. If raw water is purchased and banked in a wet year, the savings could be $308/AF, with savings as high as $902/AF if water naturally collected in Vail Lake was available and released to offset treated Tier 2 purchases.
PROJECT BACKGROUND
The District commissioned the 2012 Upper VDC Conjunctive Use Optimization Study, which identified four phases to achieve a build-out recharge goal of 43,135 AFY, representing an increase of 31 cfs of future production capacity at the Upper VDC over the current 11 cfs. With the construction of Well No. 161 currently underway, the District will have completed all elements of Phase II, with the aforementioned centralized pumping and disinfection facilities required as part of Phase III.
The District currently receives imported raw water for recharge from turnout EM-21, which has a capacity of 80 cfs, and is sufficient to provide the additional imported water for recharge and recovery. In total, 10 new wells will be installed to increase groundwater production by 22,695 AFY through artificial recharge and recovery. Pumping would occur year round.
211 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-07 Pump Station Disinfection Project Improvements (Construction Only) Funding Santa Rosa Division Division Funding $5,020,000 Amount
PROJECT DESCRIPTION
This project involves the construction of disinfection improvements at Ace Bowen No. 1, Ace Bowen No. 2, and Senga Doherty Pump Stations.
JUSTIFICATION
The District experiences difficulty maintaining water quality in the Santa Rosa Division during certain seasonal transition periods. The Santa Rosa Division is characterized by pressure zones that are large in geographic extent, with 19 distribution system storage tanks serving zones in this area. The area also has significant agricultural demand that can vary widely depending on weather conditions. As recommended by the 2014 Pump Station Booster Disinfection Project (Study), booster disinfection is needed on the west side of the system. This is consistent with the water quality data reviewed for this study and with the District’s experience. The analysis also found that even with future expansion of the Upper Valle de los Caballos (VDC) Recharge/Recovery Facility, which has chloramination facilities, very little water from that facility reaches the west side of the system [Santa Rosa Division], indicating that booster chloramination is needed for the west side. Future plans to improve chloraminated water supplied from the Upper VDC Recharge/Recovery Facility will improve chloraminated water supply to the east side of the system. Construction of the booster disinfection stations will provide the operations department with more flexibility and less operational complexity to maintain disinfection residual within the west side of the distribution system.”
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total PS Disinfection $3,345,000 $1,675,000 $5,020,000 Improvement
212 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
OPERATION COST IMPACTS This project will result in increased operations and maintenance costs to operate new facilities (chemicals, labor, etc); however, this project will best ensure the District will maintain its water quality compliance requirements, and will achieve water quality Strategic Initiative(s). The completion of this project will provide water operations with more flexibility and less operational complexity to maintain disinfection.
PROJECT BACKGROUND
The District’s potable water distribution system has two sources of supply: imported surface water from the Metropolitan Water District of Southern California (MWD) and groundwater wells. MWD supply is disinfected with chloramines, and the majority of the District’s wells are disinfected with free chlorine. The intermixing of free chlorine and chloramines can cause degradation of the chloramine residual, resulting in a subsequent loss of disinfection residual, and thus water quality and operational challenges. The aforementioned Study involved highly-sophisticated, computerized water quality modeling to evaluate the degree of providing additional disinfection at the four proposed locations to provide additional operational flexibility to maintain water quality. The results of the Study are summarized as follows: 1. A chloramination disinfection improvement at both the Ace Bowen No. 1 and No. 2 Pump Stations, and the Senga Doherty Pump Station are recommended to be operational as the first phase of disinfection improvements on the west side (Santa Rosa Division). 2. A chloramination disinfection improvement at Joaquin Ranch Pump Station is recommended to be deferred until additional operational experience is gained with the disinfection improvements at Ace Bowen and Senga Doherty Pump Stations. 3. A chloramination disinfection improvement at the Rancho California Pump Station is not recommended due to minimal contribution of supply from this facility during critically low demand periods requiring higher concentrations of chloraminated water in the east side. The Study confirmed the need for “booster” chloramine disinfection at the previously identified key pump station facilities; however, with a modification to proposed disinfection strategy on the east side of the District (Rancho Division).
213 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-08 Seasonal Storage Pond Project Facility Liner Replacement Resource Division Funding 70% Rancho Division 30% Santa Rosa Funding $6,200,000 Amount
PROJECT DESCRIPTION
This project will replace the existing lining for two recycled water storage ponds located at the Elm Street Pond Site.
JUSTIFICATION
The Elm Street Pond Site provides seasonal weather storage of recycled water in order to balance the high demand of recycled water during the summer months and the corresponding lower demand during the winter months. The existing recycled water storage ponds are lined with a 45-Mil reinforced polypropylene geomembrane to prevent the loss of water through percolation and to help with the cleaning of accumulated debris that occurs over time. These pond liners have reached the end of their useful life, as evidenced by significant deterioration due to exposure to the elements, and are no longer able to accept minor repairs by patching. The pond liners are required to be replaced to prevent the loss of stored recycled water through percolation and potential damage to the pond berm structures.
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Seasonal Storage Pond Facility Liner $4,133,000 $2,067,000 $6,200,000 Replacement
OPERATION COST IMPACTS The completion of this project will decrease water loss currently occurring through the perforations in the deteriorated liners, while decreasing operation and maintenance costs currently associated with patching the existing liners. No increased staff labor will result from the proposed project. PROJECT BACKGROUND
Recycled Water Storage Pond No. 3 Lining - Upper (Capacity = 255 AF and Surface Area = 961,000 SF) is located at the Elm Street Pond Site. This pond was last lined with a 45-Mil reinforced polypropylene geomembrane in 1997. The estimated cost of the lining of the storage pond with a
214 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
similar reinforced polypropylene geomembrane and replacing the appurtenant liner accessories is $2,300,000. Recycled Water Storage Pond No. 1/2 Lining - Middle (Capacity = 500 AF and Surface Area = 1,710,000 SF) is located at the Elm Street Pond Site. This pond was last lined with a 45-Mil reinforced polypropylene geomembrane in 1999. The estimated cost of the lining of the storage pond with a similar reinforced polypropylene geomembrane and replacing the appurtenant liner accessories is $3,900,000.
215 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-09 Recycled Water Resource Project Plan
Funding Resource Division Division
Funding $300,000 Amount
PROJECT DESCRIPTION
This project involves the development of a Recycled Water Resource Plan that evaluates and compares alternative recycled water resource strategies considering economic, implementation, and operational constraints.
JUSTIFICATION
The Recycled Water Resource Plan will address how to best utilize the Rancho California Water District’s (District) recycled water, including recycled water available for purchase now and in the future from Eastern Municipal Water District (EMWD). To address issues such as imported water supply availability, system capacity constraints, rising imported water costs, and water quality issues, the District is taking a long-term perspective that examines all reasonably possible supply-side and demand-side management opportunities to meet its customers’ needs in an economical and sustainable manner. Recycled water is a critical component of the District’s water supply portfolio.
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Recycled Water $300,000 $300,000 Resource Plan
OPERATION COST IMPACTS The completion of this project will not affect operational costs.
PROJECT BACKGROUND
As future recycled water becomes available, the District must decide on how best to utilize this sustainable, local resource. The District developed a Regional Integrated Resources Plan (RIRP) in October 2005, in order to provide a long-range water supply plan to reliably meet the needs of the District. Recycled water alternatives evaluated included conversion of agriculture currently using treated imported water to advanced-treated recycled water, groundwater recharge using advanced- treated recycled water, and water transfers. While the 2015 Water Facilities Master Plan provided a preliminary update to this analysis, a more thorough review of each likely alternative is necessary,
216 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
including preliminary engineering, discussions/agreements with partnering agencies, project costs, and available funding opportunities. Recycled water alternatives to be evaluated include: Purchase more recycled water from EMWD for Indirect Potable Reuse (IPR), and deliver it to the Lower Valle de los Caballos (VDC) recharge basins after Advanced Water Treatment (AWT); Purchase more recycled water from EMWD, and convert treated deliveries of imported water for agriculture to recycled water deliveries after AWT; Expand capacity of the existing recycled water distribution system beyond 4,500 acre-feet (AF) per year (AFY) for non-potable reuse (NPR), i.e., landscape irrigation; Purchase more recycled water from EMWD for Direct Potable Reuse (DPR), and introduce the recycled water either directly into the distribution system or into a raw water supply upstream of a future water treatment plant; Enter into agreements with other agencies to transfer/acquire future recycled water rights in exchange for additional recycled water, groundwater, and/or imported supply; and Continue with the District’s current operations, which does not include expanding the recharge/recovery facility, nor does it include expanding the recycled water distribution system capacity beyond 4,500 AFY. In order to receive federal funding, a separate feasibility study is required for the selected alternative, which has previously been completed and approved for the IPR alternative.
217 Rancho California Water District Fiscal Year 2016-2017 Non- Operating Budget
Data Sheet No. 2016-10
Vail Dam Modification Project (Design)
Funding Resource Division Division
Funding $2,000,000 Amount
PROJECT DESCRIPTION
This project involves the preliminary design of structural modifications to Vail Dam, which have been determined necessary to satisfy seismic and hydrologic mitigation measures.
JUSTIFICATION
The mission of the California Department of Water Resources Division of Safety of Dams (DSOD) is to protect people against loss of life and property damage from dam failure. Pursuant to this mission, the DSOD periodically inspects dams and reviews their stability in light of improved design approaches and requirements, as well as new findings regarding earthquake hazards and hydrologic estimates. As a result, the DSOD provided a letter to Rancho California Water District (RCWD/District) on January 18, 2013 regarding the seismic and hydrologic stability review prepared by the DSOD for Vail Dam. Subsequently, RCWD contracted with URS to perform a variety of work assignments in response to the DSOD letter.
RCWD, as the owner of Vail Dam, is responsible for the operation and safety of Vail Dam. Currently, RCWD is completing a comprehensive structural analysis of Vail Dam to determine a remediation strategy to mitigate seismic and hydrologic (flooding) deficiencies. A comprehensive list of preliminary remediation measures has been identified in the Dam Remediation Options Draft Report by URS. Modifying the dam structure to mitigate both seismic and hydrologic deficiencies generally consists of modifying the spillway and constructing a buttress on the downstream face of the dam. Preliminary cost estimates of associated remediation construction range from $13 million to $34 million.
EXPENDITURE SCHEDULE
Planned Expenditure Project 2016 2017 2018 2019 2020 Total Vail Dam $500,000 $1,500,000 $2,000,000 Modifications
OPERATION COST IMPACTS No increased staff labor will result from the proposed project.
218 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Capital Acquisitions Capital purchases are non-recurring operating expense items for District-wide use that cost more than $2,000 each and have an estimated useful life of more than a year. The capital purchases include vehicles, shop and field equipment, wastewater/collection equipment, office equipment and furniture, and computer equipment. The justification for each purchase is determined by whether it is required due to growth, improvements or upgrades, or to replace an existing asset. As these purchases are completed and placed into service, there is a potential impact on the Operating Budget.
The total Capital Acquisition Budget for Fiscal Year 2016-2017 is $1,125,840.
Capital Acquistion Budget Annual Comparison $1,400,000 $1,206,898 $1,200,000 $1,094,487 $1,125,840 $1,000,000 $998,668 $1,010,250 $861,127 $906,000 $800,000
$600,000 $496,775 $413,500 $447,500 $400,000
$200,000
$0 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
219 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
2016-2017 CAPITAL ACQUISITION BUDGET
CATEGORY DEPT DESCRIPTION QTY BUDGET $
REPLACEMENT Vehicles/ 510 23 Ton Heavy Duty Diesel Crane Truck 1 $ 250,000.00 Equipment 550 Unit 308 ¾ Ton 1 39,475.00
Total $ 289,475.00
NEW Vehicles/ Equipment 550 Electrical Services Van (accommodate new additional personnel) 1 $ 45,840.00 550 Portable Liquid Flowmeter (FLEXIM F601) 1 10,850.00
Total $ 56,690.00
REPLACEMENT Construction/ 510 Arrowboard Traffic Control 1 $ 6,000.00 Field/Shop/ 510 Welder 1 16,000.00 Testing Equip 550 Digital Tire Balancer to Replace Old Bubble Balancer 1 4,525.00 550 New Style Tier Changer 1 5,950.00 719 Barometric Pressure Transmitter 1 4,000.00 719 Level Transmitters for Recycled Ponds 1 10,000.00 719 Level Probes for Production Wells 1 15,000.00 719 Steven’s Type “F” Chart Recorders 1 6,000.00 719 Replace Humidity and Temperature Transmitters at 4 EW’s 1 25,000.00 729 Wachs Handheld Data Logger 1 3,000.00 729 CM-Level GPS Unit for Mobile Solution 1 8,000.00 739 Chlorine Analyzer at Senga Doherty, Ace Bowen, Norma Marshall 3 60,000.00
Total $ 163,475.00
NEW Construction/ 510 Trench Plates 1 $ 13,000.00 Field/Shop/ 719 600 PSI Pneumatic Hand Pump 1 2,100.00 719 Equipment to Outfit New Van 1 15,000.00 719 Improvements to SCADA Historian 1 35,000.00 729 Motor Balancer for Pump Motors 1 8,000.00 Equipment Total $ 73,100.00
220 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
REPLACEMENT Wastewater/ 760 Polyblend Unit 1 $ 20,000.00
Total $ 20,000.00
NEW
Wastewater/ Collection 760 Pipeline Locator 1 $ 5,000.00
Total $ 5,000.00
REPLACEMENT
Office Equip/ 250 Laptop for Finance Analyst 1 $ 2,000.00 Computers 319 Cabinet Workstation in Main Copy Room 1 3,000.00 329 Upgrade iSCI SAN Replication 1 40,000.00 329 Upgrade Lawson to Version 10 1 25,000.00 329 Upgrade Backup Storage Appliances 1 40,000.00 329 Desktop Fleet 20% Replacement 1 50,000.00 329 Palo Alto Firewall Replacement 1 200,000.00 510 Laptop Computers 2 6,000.00 550 Replace Desktop Computer 2 3,000.00 550 3 A/C Package Units at District HQ 3 30,000.00 550 Liftmaster SL 585 Slide Gate Opener (motor and chain) 1 5,500.00 550 Liftmaster SL 585 Slide Gate Opener (motor and chain) 1 5,500.00 719 Technician Field Laptops 3 7,500.00 729 Getac Laptops for New Mobile Solution 2 8,600.00 729 HP Laptop for Duty Operator 1 2,000.00 729 HP Laptop for Corrosion Control Specialist 1 5,000.00
Total $ 433,100.00 NEW
Office Equip/ 300 GIS Facility Realignment 1 $ 30,000.00 Computers 329 Disaster Recovery Site Construction 1 25,000.00 329 Add Vmware Host Servers 1 30,000.00
Total $ 85,000.00
TOTAL $ 1,125,840.00
221 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
FISCAL YEAR 2016-2017 CAPITAL ACQUISITION BUDGET TOTALS
Replacement Total Rancho Division Debt Service/Capital Improvement $443,025.00 Santa Rosa Debt Service/Capital Improvement 443,025.00 Wastewater Replacement 20,000.00 TOTAL $906,050.00
New Total Rancho Division Debt Service/Capital Improvement $107,395.00 Santa Rosa Debt Service/Capital Improvement 107,395.00 Wastewater General Fund 5,000.00 TOTAL $219,790.00
TOTAL $1,125,840.00
222 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
NON-OPERATING WATER AND WASTEWATER RATES SUMMARY
Water Rates RANCHO DIVISION SANTA ROSA DIVISION Description FY 2015-2016 FY 2016-2017 FY 2015-2016 FY 2016-2017 Ad Valorem $0.30 per $100 $0.30 per $100 $0.50 per $100 of $0.50 per $100 of Assessment of Assessed of Assessed Assessed Land Assessed Land Land Value Land Value Value Value Area 1-$69.92 per Area 1-$69.92 per acre/parcel acre/parcel Area 1A-$69.92 Area 1A-$69.92 per acre/parcel, per acre/parcel, first 40 acres, first 40 acres, Standby N/A N/A $62.10 per acre $62.10 per acre Charge thereafter thereafter Area 2-$48 per Area 2-$48 per acre/parcel acre/parcel Area 3-$23.50 Area 3-$23.50 per acre/parcel per acre/parcel
Wastewater RANCHO DIVISION SANTA ROSA DIVISION Rates Description FY 2015-2016 FY 2016-2017 FY 2015-2016 FY 2016-2017 **Standby $28.50 per $28.50 per Charge N/A N/A unconnected unconnected ID’s 2 and 3 parcel parcel *Wastewater Capacity fee N/A N/A $8,859 $9,568 per EDU Wastewater $4.00 per $4.00 per N/A N/A Replacement EDU/month EDU/month Surcharge Wastewater $9.25 per $9.50 per N/A N/A Debt Service EDU/month EDU/month Surcharge *Santa Rosa Water Reclamation Facility (SRWRF) Improvement District Nos. 2 & 3 ** SRWRF Standby Charge - $28.50 per acre or per parcel on all land that has not paid a capacity fee as of March 1, 2015
223 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
WATER CAPACITY FEES
METER SIZE RANCHO DIVISION SANTA ROSA DIVISION FY 2015-2016 FY 2016-2017 FY 2015-2016 FY 2016-2017
3/4" $ 1,603 $ 1,635 $ 2,458 $ 2,507
1" 2,671 2,725 4,098 4,179
1-1/2" 5,343 5,450 8,189 8,353
2" 6,677 6,811 10,236 10,440
2" Turbine 8,547 8,718 13,104 13,366
3" 16,026 16,347 24,573 25,064
4" 40,068 40,870 61,431 62,660
6" 82,804 84,460 126,959 129,498
8" 133,556 136,227 204,772 208,868
224 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
CONSOLIDATED NON-OPERATING BUDGET
Combined Rancho Santa Rosa Revenue SRWRF Total Division Division AV Assessments 22,336,000 14,548,000 7,788,000 - 1% Assessments 15,843,552 13,391,063 2,452,489 - Standby Assessments 2,772,349 - 2,740,389 31,960 Interest Revenue 4,617,925 3,760,950 382,463 474,512 Re-class Operating Interest (493,000) (400,000) (39,000) (54,000) Federal Direct Pay Interest Subsidy 2,419,482 1,238,168 1,162,486 18,827 CSI Solar Rebate 520,670 89,421 431,250 - Connection Fee 1,550,105 447,400 105,291 997,415 Connection Fee Contra (1,550,105) (447,400) (105,291) (997,415) Fire Service Charge 237,947 165,507 72,440 - Other Debt Service 623,464 - - 623,464 Other Income Replacement 399,017 - - 399,017 Debt Service Share from JPA 2,521,934 110,290 43,495 2,368,148 Vail Lake Operations (921,263) (644,884) (276,379) - Other Tier IV Programs 2,175,740 1,438,735 737,005 - Capital Grants 1,200,000 600,000 600,000 - Re-class to Operations - - - - Total Non-Operating Revenue 54,253,816 34,297,250 16,094,639 3,861,928 Expenditures
Depreciation & Amortization 25,755,430 12,760,684 10,288,329 2,706,417 Bond Discount Amortization 270,272 69,793 111,985 88,493 CFD Assessment 327,180 229,026 98,154 - Bond Interest 17,259,706 6,800,695 7,480,720 2,978,292 Capital Reserve Contribution to JPA - - - 7,130,679 Investment Management Expense 126,544 97,739 12,270 16,536 Other 250,593 182,530 45,883 2,180 Total Non-Operating Expenditures 43,969,724 20,140,467 18,037,340 12,922,596 Net Non-Operating Revenue 10,284,092 14,156,783 (1,942,702) (9,060,668) Adjustments to Cash Basis
Add: Depreciation & Amortization 25,755,430 12,760,684 10,288,329 2,706,417 Bond Discount Amortization 270,272 69,793 111,985 88,493 Connection Fees 1,550,105 447,400 105,291 997,415 Reimbursement from Debt Financing 21,560,000 9,440,000 12,120,000 - Less: Capital Improvement Projects (34,045,000) (16,517,000) (17,487,500) (40,000) Capital Acquisition Items (1,120,840) (550,420) (550,420) (20,000) Debt Principal (5,990,000) (3,376,352) (2,597,188) (16,460) Net Cash Adjustment 7,980,466 2,274,105 1,990,496 3,715,865 Net Non-Operating Cash Sources/(Uses) 18,264,558 16,430,889 47,795 (5,344,804)
225 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
The following graph and schedules identify the major sources of revenue of the 2016-2017 non- operating budget.
MAJOR NON-OPERATING REVENUE Revenue Actual Budget Budget Percent FY 2014-15 FY 2015-16 FY 2016-17 Change AV Assessments $22,030,739 $20,832,000 $22,336,000 7.2% 1% Assessments 14,693,838 15,087,885 15,843,552 5.0% Standby Assessments 2,861,813 2,778,090 2,772,349 -0.2% Interest Revenue 4,592,096 4,733,984 4,617,925 -2.5% Reclass Operating Interest (803,000) (518,000) (493,000) -4.8% Federal Direct Pay Interest Subsidy 2,137,491 2,409,098 2,419,482 0.4% CSI Solar Rebate 782,963 865,044 520,670 -39.8% Capacity Fee 1,752,059 1,119,084 1,550,105 38.5% Capacity Fee Contra (1,752,059) (1,119,084) (1,550,105) 38.5% Fire Service Charge 234,853 234,853 237,947 1.3% Other Non-Operating Income (806,646) - - - Other Income Debt Service 1,319,378 881,489 623,464 -29.3% Other Income Replacement 554,528 391,773 399,017 1.8% Debt Service Share from JPA 83,724 1,803,656 2,521,934 39.8% Vail Lake Operations (1,068,912) (1,077,790) (921,263) -14.5% Other Tier IV Programs 612,764 441,870 2,175,740 392.4% Capital Grants - - 1,200,000 - Reclass to Operations - - - - TOTALS $47,225,629 $ 48,863,952 $ 54,253,816 11.0%
226 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Explanation of Major Non-Operating Revenue Sources AV ASSESSMENTS: Revenues received from the annual ad valorem assessments levied by the District to pay for annual debt service AV Assessments on water improvement bonds which funded capital facilities. The Actual 14-15 Budget 15-16 Budget 16-17 rate in the Rancho Division is .30 per $100 of assessed land value and is .50 per $100 of assessed land value for the Santa Rosa Division. 16-17 $22.34 For fiscal year 2016-2017 revenue is projected to be $22,336,000. AV assessment revenue is projected to increase by 7.2% compared 15-16 $20.83 to fiscal year 2015-2016. This increase is due to an increase projected in assessed values. 14-15 $22.03 1% ASSESSMENT: Revenues received from the District’s share of the 1% property tax that is levied by the County based on land value and distributed to agencies is used for debt service only. For fiscal year 2016-2017 revenue is projected to be $15,843,552. The 1.0% assessment revenue is projected to increase by 5.0% compared to fiscal year 2015-2016. This increase is due to an increase projected in assessments. STANDBY ASSESSMENTS: Revenues received from the annual standby charges levied to pay annual debt service on bonds. This assessment is a fixed charge per acre/parcel based upon the estimated benefit from water facilities constructed to meet water supply demands. For fiscal year 2016-2017 revenue is projected to be $2,772,349. The standby assessment revenue is projected to remain relatively unchanged compared to fiscal year 2015-2016. Standby Assessments INTEREST REVENUE: Revenues received from the interest Actual 14-15 Budget 15-16 Budget 16-17 earned on general funds, assessment district funds, capital replacement funds, capacity fees funds, and various bond funds. District funds are pooled together for investing 16-17 $2.77 purposes. Interest earnings are allocated based on prior month cash balances for the various funds. 15-16 $2.78 For fiscal year 2016-2017 revenue is projected to be $4,617,925. The interest revenue is projected to decrease by 14-15 $2.86 2.5% compared to fiscal year 2015-2016. This decrease is due to stable interest rates and slightly lower cash balances due to cash funding CIP in FY2015-16.
227 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
RE-CLASS OPERATING INTEREST: This activity represents the budgeted re-class of general fund interest earnings being used for operations. For fiscal year 2016-2017 the re-class to operations is projected to be $493,000. The re-class to operations is projected to decrease by 4.8% compared to fiscal year 2015-2016. This decrease is due to lower investment earnings. FEDERAL DIRECT PAY SUBSIDY: In November 2010 the District issued $100,785,000 of Build America Bonds (BABs). Under the BABs Program the District will receive a 35% interest subsidy on the issue. In October 2011, the District issued $9,870,000 of Qualified Energy Conservation Bonds (QECBs). Under the QECB program, the District will receive a 70% interest subsidy on the issue. Congress passed a sequestration for direct-pay bond subsidies that cuts the interest subsidy on the bonds by 6.8%. Therefore, the District will receive a 65% interest subsidy on the BABs and 32.6% interest subsidy on the QECBs. For fiscal year 2016-2017, the District expects to receive $2,419,482, which is projected to remain almost the same as fiscal year 2015-2016. CSI SOLAR REBATE: In January 2012 the District installed new solar facilities at the District headquarters and the Senga Doherty Pump Station. These facilities qualify for the California Solar Initiative (CSI) Rebate Program, based on the amount of energy produced by the facilities. For fiscal year 2016-2017 the District expects to receive $520,670. The CSI solar rebate is projected to decrease by 39.8% compared to fiscal year 2015-2016. This decrease is due to the natural degradation of the equipment and the expiration of a government subsidy on January 31, 2017. CAPACITY FEE: Revenues received from the collection of water and sewer connection fees also referred to as capacity Capacity Fee fees. The amount charged for the purchase of capacity in Actual 14-15 Budget 15-16 Budget 16-17 the District’s water or sewer system is based upon the rated maximum of the meter for water and the number of EDU’s for sewer. 16-17 $1,550 For fiscal year 2016-2017 revenue is projected to be $1,550,105. Capacity fee revenue is projected to increase by 15-16 38.5% compared to fiscal year 2015-2016. This is due to $1,119 improved development activity compared to the prior year. FIRE SERVICE CHARGE: Revenues received for fire service 14-15 $1,752 charges levied on the property tax bill of parcels requiring more than a residential (1,000 gpm) fire flow requirement. The charge is a per acreage assessment and is used to help offset the additional capital cost of up- sizing District facilities constructed to provide adequate fire flow. For fiscal year 2016-2017 revenue is projected to be $237,947. The fire service charge revenue is projected to remain the relatively the same as fiscal year 2015-2016. OTHER- INCOME DEBT SERVICE: Revenues received from a wastewater surcharge assessed as a monthly debt service charge on the wastewater billing. This surcharge will increase from $9.25 per EDU to $9.50 per EDU for fiscal year 2016-2017 in consideration of increased capital cost sharing through the SRRRA JPA. For fiscal year 2016-2017 revenue is projected to be $623,464. The other income debt service is projected to decrease by 29.3% compared to fiscal year 2015-2016. This is due to the debt sharing through the SRRRA JPA.
228 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
OTHER- INCOME REPLACEMENT: Revenues received from a Other- Income Replacement wastewater surcharge assessed for facility replacement on Actual 13-14 Budget 15-16 Budget 16-17 the monthly wastewater billing. The surcharge for wastewater will remain at $4.00 per EDU for fiscal year 2016-2017. 16-17 $399 For fiscal year 2016-2017 revenue is projected to be $399,017. The other income replacement revenue is 15-16 $392 projected to increase 1.8% compared to fiscal year 2015- 2016. DEBT SERVICE SHARE FROM JPA (FORMERLY CONTRACT 14-15 $555 DEBT SERVICE REVENUE): Revenues received as fixed annual payments for capital facilities from wastewater contract agencies. The revenues are required for annual payment for debt service or construction of the wastewater facility and are based on the ultimate plant capacity requirements of each agency. In 2015, the District along with two contract agencies (Eastern and Western Water Districts) formed a Joint Powers Authority (JPA) to take over management of the facility from the District. For fiscal year 2016-2017 revenue is projected to be $2,521,934. The contract debt service revenue is projected to increase by 39.8% compared to fiscal year 2015-2016. OTHER TIER IV PROGRAMS: Annually the District evaluates its Tier IV revenue and reclassifies a portion of the funds to Non-Operating Reserves for the funding of the capitalized projects identified to be funded from the Tier IV revenues. For fiscal year 2016-2017 revenue is projected to be $2,175,740. The Tier IV program is projected to increase 392.4% for fiscal year 2015-2016. The increase is due to an increase in the Tier IV rate and increased Tier IV water sales. VAIL LAKE OPERATIONS: In 2014, the District purchased approximately 7,000 acres surrounding Vail Lake. The District now owns and operates Vail Lake Campground and Marina and has contracted with Urban Parks Concessionaire to manage the facilities. This allows the District to concentrate on the core business of serving water and providing sewer collection and treatment to our community. For fiscal year 2016-2017 net operations are projected to be -$921,263. Vail Lake Operations is projected to decrease by 14.5% compared to fiscal year 2015-2016 due to fiscal year 2015-16 having significant initial operating start-up capital investment needs. RE-CLASS TO OPERATIONS: Annually the District evaluates its net non-operating position and determines if any available amount can be reclassified to Operating Reserves for bolstering Rate Stabilization, Working Capital, and Drought Reserves. For fiscal year 2016-2017, the District will not re-class any funds to operations.
229 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
The following graph and schedules identify the major non-operating expenses of the 2016-2017 non- operating budget.
MAJOR NON-OPERATING EXPENSES
Expenses Actual Budget Budget Percent FY 2014-15 FY 2015-16 FY 2016-17 Change Depreciation & Amortization $24,236,851 $24,327,154 $25,755,430 5.9% Bond Discount Amortization 270,272 270,271 270,272 0.0% CFD Assessment 115,688 215,043 327,180 52.1% Bond Interest Expense 16,520,982 17,633,797 17,259,706 -2.1% Investment Management Expense 128,793 133,182 126,544 -5.0% Other 312,072 219,676 230,593 5.0% TOTALS $ 41,584,658 $ 42,799,123 $ 43,969,724 2.7%
230 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
Explanation of Major Non-Operating Expenses DEPRECIATION AND AMORTIZATION: This expenditure includes such amounts of depreciation and amortization chargeable to each month’s operations calculated on the straight line method over the useful lives of the assets. For fiscal year 2016-2017 expenses are projected to be $25,755,430. Depreciation and amortization expense is projected to increase by 5.9% compared to the fiscal year 2015-2016. This increase is due to an increase in District assets. BOND DISCOUNT AMORTIZATION: This Bond Discount Amortization expenditure includes amortization of bond discount chargeable to each month’s operations. The costs are amortized on the straight-line 16-17 $270 method based on the estimated term of the related bond debt. 15-16 $270 For fiscal year 2016-2017 expenses are projected to be $270,272. Bond discount amortization expense is projected to remain the same as fiscal 14-15 $270 year 2015-2016. CFD ASSESSMENT: This expenditure includes the amount of interest expense applicable to outstanding long-term debt issued by the Community Facility District No. 89-5. The District owns all the property in Zone B. The actual special tax requirement will depend on CFD Assessment the actual variable monthly interest payments Actual 14-15 Budget 15-16 Budget 16-17 due on the Refunding Bonds. The District will be responsible for the difference in the actual special tax requirement and the amount levied 16-17 $327 on Zone A parcels.
For fiscal year 2016-2017 expenses are projected 15-16 $215 to be $327,180. CFD assessment expense is projected to increase 52.1% compared to fiscal year 2015-2016. This increase is due to increased 14-15 $116 administrative expenses. BOND INTEREST: This expenditure includes the amount of interest expense applicable to outstanding long-term debt issued by the District. The expense is accrued monthly and there is a corresponding liability account for each bond interest account. For fiscal year 2016-2017 expense is projected to be $17,259,706. Interest expense is projected to decrease by 2.1% compared to the fiscal year 2015-2016. This decrease is due to the amortization schedule of the District’s debt service. INVESTMENT MANAGEMENT EXPENSE: The District utilizes an external professional management firm to execute its investment policy. For fiscal year 2016-2017, this expense is projected to be $126,544. A 5.0% decrease is projected over fiscal year 2015-2016 and is due to decreased portfolio balances. OTHER: This expenditure includes banking fees, county charges related to administrating the property tax rates, and other miscellaneous expense.
231 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget
For fiscal year 2016-2017 expense is projected to be $230,593. Other expense is projected to increase by 5.0% compared to fiscal year 2015-2016.
232 Rancho California Water District Fiscal Year 2016-2017 Non-Operating Budget Exhibits
Fund Structure Non-Operating Budget
Debt Service Capital Improvement Fund The Debt Service Capital Improvement (DSCI) Fund is used to account for money received by the District from the collection of property assessments, standby charges, and monthly wastewater surcharges. Money placed in the DSCI fund is used for the payment of principal and interest on bonds and to cash fund capital improvement projects. Capital projects can include new facilities as well as replacement water facilities.
Wastewater Replacement Fund The Wastewater Replacement Fund is used to account for money received by the District from the payment of the monthly depreciation surcharge attached to the monthly wastewater service charge. Money placed in the wastewater replacement fund is used for the replacement of capital facilities.
Capacity Fee Fund Water Capacity Fee: charges paid by new customers prior to connecting to the District’s system. The District has taken significant steps to create a capacity fee program that equitably allocates capital between existing and future users and complies with the requirements of AB1600. Money placed in the water capacity fee fund is used for the construction of capital facilities. Wastewater Capacity Fee: charges paid by new customers prior to connecting to the District’s wastewater system. Money placed in the wastewater capacity fund is used for the funding of wastewater facilities and for the payment of principal and interest on construction bonds issued to construct wastewater facilities.
The debt service, capital facility and replacement reserve funds balances are evaluated on an annual basis during the adoption of the District’s non-operating budget. The non-operating budget is a 30- year financial plan which projects debt costs and facility requirements and balances those needs with revenue and fund balance projections.
Long Range Financial Plan The Districts LRFP schedules, on the following pages, demonstrates its ability to fund the projected “new and Replacement” facility requirements through 2066. The LRFP incorporates projects of the revenues, use of cash reserves, and debt service on current and future debt needed to finance these facility requirements. Included in the LRFP is a projected reserve balance for each of the 50 years included in the plan. One way to view the ability of the District to demonstrate its ability to fund these facilities is to look at the ending reserve balances each year. A positive reserve balance projection demonstrates that the existing and projected revenues will be sufficient to either cash fund or pay debt service on the financing of the facilities. For planning purposes after five years in the LRFP all facilities are assumed to be financed.
233 Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2017 2018 2019 2020 2021 2022 2023
Beginning Fund Balance $144,707,788 151,225,849 159,783,625 171,756,137 184,360,292 196,101,604 222,147,013
Funding Sources Taxes & Assessments 1% General Purpose (1) 13,391,063 13,725,839 14,137,615 13,996,238 14,556,088 15,138,331 15,743,865 Ad Valorem Assessments (2) 14,548,000 14,919,000 15,374,000 15,916,000 13,936,000 14,494,000 15,073,000 Capacity Fees 447,400 588,172 546,784 560,453 574,465 961,852 985,899 Federal Direct Pay Interest Subsidy 1,238,168 1,238,168 1,238,168 1,238,168 1,238,168 1,238,168 1,238,168 CSI Solar Rebate 89,421 Fire Service Charges (3) 165,507 165,507 165,507 165,507 165,507 165,507 165,507 Other Tier IV Programs 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 Total Taxes and Assessments 31,318,293 32,075,422 32,900,809 33,315,102 31,908,963 33,436,594 34,645,174 Other Revenues External DRF (4) 105,025 105,025 105,025 300,071 300,071 300,071 300,071 Interest Internal DRF (5) 3,655,925 3,402,582 3,994,591 4,293,903 5,069,908 5,883,048 7,775,145 Vail Lake Operations (644,884) - Adv. Treated Debt CS JPA (6) 110,290 110,260 135,522 129,142 207,146 177,204 160,815 Capital Grant Revenue 600,000 ------Total Other Revenues 3,826,356 3,617,866 4,235,137 4,723,116 5,577,124 6,360,322 8,236,031 Total Funding Sources 35,144,650 35,693,288 37,135,946 38,038,218 37,486,087 39,796,917 42,881,205 Funding Uses Debt Service (7) 10,033,070 10,572,038 10,871,251 11,671,949 9,130,979 9,133,143 10,095,255 Misc. Bond Fees/Other Expenses 653,271 424,000 424,000 424,000 424,000 424,000 424,000 JPA Capital CS – Tertiary Trt (8) 61,504 61,504 61,504 61,504 61,504 Transfer to Operating Reserve Fund ------Pay-Go-Capital 17,940,248 16,139,473 13,806,679 13,276,610 16,128,292 4,132,860 4,145,015
Total Funding Uses 28,626,589 27,135,511 25,163,434 25,434,063 25,744,775 13,751,508 14,725,774 Net Sources/(Uses) 6,518,061 8,557,777 11,972,511 12,604,155 11,741,312 26,045,409 28,155,431 Ending Fund Balance $151,225,849 159,783,625 171,756,137 184,360,292 196,101,604 222,147,013 250,302,444 Projected Debt Balance $125,218,457 128,317,130 130,074,598 125,029,946 122,357,146 119,558,947 172,042,617
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
234
Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2024 2025 2026 2027 2028 2029 2030
Beginning Fund Balance $ 250,302,444 278,220,105 308,578,795 337,296,086 368,276,399 401,375,331 437,169,284
Funding Sources Taxes & Assessments 1% General Purpose (1) 16,373,619 17,028,564 17,709,707 18,418,095 19,154,819 19,921,011 20,717,852 Ad Valorem Assessments (2) 15,676,000 16,303,000 13,772,000 14,323,000 14,896,000 15,492,000 16,112,000 Capacity Fees 1,010,546 1,035,810 1,061,705 948,785 972,504 996,817 1,277,172 Federal Direct Pay Interest Subsidy 1,238,168 1,238,168 1,238,168 1,238,168 1,231,683 1,218,175 1,203,397 CSI Solar Rebate Fire Service Charges (3) 165,507 165,507 165,507 165,507 165,507 165,507 165,507 Other Tier IV Programs 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 Total Taxes and Assessments 35,902,576 37,209,784 35,385,822 36,532,290 37,859,249 39,232,246 40,914,663 Other Revenues External DRF (4) 300,071 300,071 300,071 300,071 300,071 300,071 3,075,039 Interest Internal DRF (5) 10,012,098 11,128,804 12,343,152 13,491,843 14,731,056 16,055,013 17,486,771 Vail Lake Operations Adv. Trt Debt CS from JPA (6) 158,782 158,138 156,797 155,474 153,796 153,035 152,345 Capital Grant Revenue Total Other Revenues 10,470,950 11,587,013 12,800,019 13,947,388 15,184,922 16,508,119 20,714,156 Total Funding Sources 46,373,526 48,796,798 48,185,841 50,479,678 53,044,171 55,740,365 61,628,819 Funding Uses Debt Service (7) 13,812,949 13,782,547 13,798,342 13,816,001 14,248,456 14,235,941 13,995,612 Misc. Bond Fees/Other Expenses 424,000 424,000 424,000 424,000 424,000 424,000 424,000 JPA Capital CS – Tertiary Trt. (8) 61,504 61,504 61,504 61,504 61,504 61,504 61,504 Transfer to Operating Reserve Fund ------Pay-Go-Capital 4,157,412 4,170,057 5,184,704 5,197,860 5,211,279 5,224,966 5,238,928 Total Funding Uses 18,455,865 18,438,108 19,468,550 19,499,365 19,945,239 19,946,411 19,720,044 Net Sources/(Uses) 27,917,661 30,358,690 28,717,291 30,980,313 33,098,932 35,793,954 41,908,775 Ending Fund Balance $278,220,105 308,578,795 337,296,086 368,276,399 401,375,331 437,169,284 479,078,059 Projected Debt Balance $167,050,675 161,864,467 156,426,968 150,724,608 144,319,262 137,633,512 221,190,890
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
235
Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2031 2032 2033 2034 2035 2036 2037 Beginning Fund Balance $ 479,078,059 511,536,674 548,248,819 588,769,181 632,398,699 683,034,030 723,984,177 Funding Sources Taxes & Assessments 1% General Purpose (1) 21,546,566 22,408,429 23,304,766 24,236,956 25,206,435 26,214,692 27,263,280 Ad Valorem Assessments (2) 12,884,000 13,399,000 13,935,000 14,492,000 15,072,000 15,675,000 16,302,000 Capacity Fees 1,309,101 1,341,829 1,375,374 1,409,759 1,445,003 1,481,128 1,518,156 Federal Direct Pay Interest Subsidy 1,187,409 1,179,176 1,155,863 1,108,011 1,057,906 954,947 796,881 CSI Solar Rebate Fire Service Charges (3) 165,507 165,507 165,507 165,507 165,507 165,507 165,507 Other Tier IV Programs 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 Total Taxes and Assessments 38,531,318 39,932,675 41,375,246 42,850,968 44,385,585 45,930,009 47,484,559 Other Revenues External DRF (4) 189,072 1,228,967 147,476 147,476 3,834,376 - - Interest Internal DRF (5) 19,163,122 20,461,467 21,929,953 23,550,767 25,295,948 27,321,361 28,959,367 Vail Lake Operations Adv. Trt Debt CS from JPA (6) 181,813 181,860 22,451 22,345 22,324 4,341 4,272 Total Other Revenues 19,534,007 21,872,294 22,099,880 23,720,588 29,152,647 27,325,702 28,963,639 Total Funding Sources 58,065,325 61,804,969 63,475,126 66,571,556 73,538,233 73,255,711 76,448,198 Funding Uses Debt Service (7) 19,121,367 18,592,954 16,440,079 16,412,242 16,357,690 27,917,868 27,750,259 Misc. Bond Fees/Other Expenses 424,000 424,000 424,000 424,000 424,000 424,000 424,000 JPA Capital CS – Tertiary Trt. (8) 61,504 61,504 61,504 61,504 61,504 61,504 61,504 Transfer to Operating Reserve Fund ------Pay-Go-Capital 5,999,840 6,014,365 6,029,181 6,044,293 6,059,707 3,902,192 3,918,229 Total Funding Uses 25,606,710 25,092,823 22,954,764 22,942,039 22,902,901 32,305,564 32,153,993 Net Sources/(Uses) 32,458,615 36,712,145 40,520,362 43,629,517 50,635,332 40,950,147 44,294,205 Ending Fund Balance $511,536,674 548,248,819 588,769,181 632,398,699 683,034,030 723,984,177 768,278,383 Projected Debt Balance $213,297,151 205,610,731 199,819,534 193,749,773 292,885,060 279,771,310 266,077,464
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
236
Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2038 2039 2040 2041 2042 2043 2044
Beginning Fund Balance $768,278,383 816,120,408 867,722,576 923,309,068 969,056,785 1,027,807,941 1,089,581,186
Funding Sources Taxes & Assessments 1% General Purpose (1) 28,353,811 29,487,963 30,667,482 31,894,181 33,169,948 34,496,746 35,876,616 Ad Valorem Assessments (2) 16,954,000 17,632,000 18,337,000 19,071,000 19,834,000 20,627,000 21,452,000 Capacity Fees 1,556,110 1,595,012 1,634,888 1,675,760 1,429,695 - - Federal Direct Pay Interest Subsidy 632,146 460,479 281,588 95,150 CSI Solar Rebate Fire Service Charges (3) 165,507 165,507 165,507 165,507 165,507 165,507 165,507 Other Tier Iv Programs 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 Total Taxes and Assessments 49,100,309 50,779,697 52,525,200 54,340,333 56,037,885 56,727,989 58,932,858 Other Revenues External DRF (4) ------Interest Internal DRF (5) 30,731,135 32,644,816 34,708,903 36,932,363 38,762,271 41,112,318 43,583,247 Vail Lake Operations Adv. Trt. Debt CS from JPA (6) 4,199 4,123 4,044 3,963 Capital Grant Revenue Total Other Revenues 30,735,334 32,648,940 34,712,947 36,936,326 38,762,271 41,112,318 43,583,247 Total Funding Sources 79,835,643 83,428,637 87,238,147 91,276,659 94,800,157 97,840,306 102,516,106 Funding Uses Debt Service (7) 27,573,527 27,389,693 27,197,860 31,033,498 21,535,851 21,535,851 21,535,851 Misc. Bond Fees/Other Expenses 424,000 424,000 424,000 424,000 424,000 424,000 424,000 JPA Capital CS – Tertiary Trt. (8) 61,504 61,504 61,504 61,504 61,504 61,504 61,504 Transfer to Op. Reserve Fund ------Pay-Go-Capital 3,934,587 3,951,272 3,968,291 14,009,939 14,027,646 14,045,706 14,064,128 Total Funding Uses 31,993,618 31,826,469 31,651,655 45,528,941 36,049,001 36,067,061 36,085,483 Net Sources/(Uses) 47,842,026 51,602,168 55,586,492 45,747,718 58,751,156 61,773,245 66,430,623 Ending Fund Balance $816,120,408 867,722,576 923,309,068 969,056,785 1,027,807,941 1,089,581,186 1,156,011,809 Projected Debt Balance $251,779,417 236,849,606 283,266,485 266,051,652 257,662,429 248,874,265 239,667,645
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
237
Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2045 2046 2047 2048 2049 2050 2051
Beginning Fund Balance 1,156,011,809 1,227,373,931 1,288,880,914 1,355,308,793 1,427,499,016 1,505,527,563 1,589,756,309
Funding Sources Taxes & Assessments 1% General Purpose (1) 37,311,681 38,804,148 40,356,314 41,970,567 43,649,389 45,395,365 47,211,179 Ad Valorem Assessments (2) 22,310,000 23,203,000 24,131,000 25,096,000 26,100,000 27,144,000 28,230,000 Capacity Fees ------Federal Direct Pay Interest Sub. CSI Solar Rebate Fire Service Charges (3) 165,507 165,507 165,507 165,507 165,507 165,507 165,507 Other Tier IV Programs 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 Total Taxes and Assessments 61,225,923 63,611,390 66,091,556 68,670,809 71,353,631 74,143,607 77,045,422 Other Revenues External DRF (4) ------Interest Internal DRF (5) 46,240,472 49,094,957 51,555,237 54,212,352 57,099,961 60,221,103 63,590,252 Vail Lake Operations Adv. Trt. Debt CS from JPA (6) Capital Grant Revenue ------Total Other Revenues 46,240,472 49,094,957 51,555,237 54,212,352 57,099,961 60,221,103 63,590,252 Total Funding Sources 107,466,395 112,706,348 117,646,793 122,883,161 128,453,592 134,364,710 140,635,674 Funding Uses Debt Service (7) 21,535,851 38,611,363 38,611,363 38,065,447 37,777,215 37,528,891 52,002,884 Misc. Bond Fees/Other Exp/ 424,000 424,000 424,000 424,000 424,000 424,000 424,000 JPA Capital CS – Tertiary Trt (8) 61,504 61,504 61,504 61,504 61,504 Transfer to Op. Reserve Fund ------Pay-Go-Capital 14,082,918 12,102,498 12,122,047 12,141,987 12,162,326 12,183,072 15,401,816 Total Funding Uses 36,104,273 51,199,365 51,218,914 50,692,938 50,425,045 50,135,963 67,828,701 Net Sources/(Uses) 71,362,122 61,506,983 66,427,879 72,190,223 78,028,547 84,228,746 72,806,973 Ending Fund Balance $1,227,373,931 1,288,880,914 1,355,308,793 1,427,499,016 1,505,527,563 1,589,756,309 1,662,563,282
Projected Debt Balance $492,514,556 478,457,682 463,720,280 448,814,717 433,469,933 640,115,288 620,118,173
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
238
Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2052 2053 2054 2055 2056 2057 2058
Beginning Fund Balance $1,662,563,282 1,741,278,398 1,826,258,088 1,921,547,113 2,024,020,040 2,113,164,459 2,209,521,409
Funding Sources Taxes & Assessments 1% General Purpose (1) 49,099,626 51,063,612 53,106,156 55,230,402 57,439,618 59,737,203 62,126,691 Ad Valorem Assessments (2) 29,359,000 30,533,000 31,754,000 33,025,000 34,346,000 35,719,000 37,148,000 Capacity Fees ------Federal Direct Pay Interest Subsidy CSI Solar Rebate Fire Service Charges (3) 165,507 165,507 165,507 165,507 165,507 165,507 165,507 Other Tier IV Programs 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 Total Taxes and Assessments 80,062,869 83,200,854 86,464,398 89,859,645 93,389,861 97,060,445 100,878,933 Other Revenues External DRF (4) ------Interest Internal DRF (5) 66,502,531 69,651,136 73,050,324 76,861,885 80,960,802 84,526,578 88,380,856 Vail Lake Operations Adv. Trt. Debt CS from JPA (6) Capital Grant Revenue ------Total Other Revenues 66,502,531 69,651,136 73,050,324 76,861,885 80,960,802 84,526,578 88,380,856 Total Funding Sources 146,565,400 152,851,990 159,514,722 166,721,529 174,350,662 181,587,024 189,259,790 Funding Uses Debt Service (7) 52,002,884 52,002,884 48,333,825 48,333,825 66,967,966 66,967,966 66,967,966 Misc. Bond Fees/Other Expenses 424,000 424,000 424,000 424,000 424,000 424,000 424,000 JPA Capital CS – Tertiary Trt (8) Transfer to ORF ------Pay-Go-Capital 15,423,400 15,445,416 15,467,872 15,490,777 17,814,278 17,838,108 17,862,415 Total Funding Uses 67,850,285 67,872,300 64,225,697 64,248,602 85,206,244 85,230,074 85,254,381 Net Sources/(Uses) 78,715,115 84,979,690 95,289,025 102,472,927 89,144,419 96,356,950 104,005,409 Ending Fund Balance $1,741,278,398 1,826,258,088 1,921,547,113 2,024,020,040 2,113,164,459 2,209,521,409 2,313,526,818 Projected Debt Balance $599,121,202 577,074,383 557,594,282 823,592,597 797,804,266 770,726,518 742,294,883
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
239
Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2059 2060 2061 2062 2063 2064
Beginning Fund Balance $2,313,526,818 2,425,638,717 2,546,339,275 2,660,054,154 2,782,757,682 2,914,987,691
Funding Sources Taxes & Assessments 1% General Purpose (1) 64,611,759 67,196,229 69,884,078 72,679,442 75,586,619 78,610,084 Ad Valorem Assessments (2) 38,634,000 40,179,000 41,787,000 43,458,000 45,196,000 47,004,000 Capacity Fees - - - - - Federal Direct Pay Interest Subsidy CSI Solar Rebate Fire Service Charges (3) 165,507 165,507 165,507 165,507 165,507 165,507 Other Tier IV Programs 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 1,438,735 Total Taxes and Assessments 104,850,001 108,979,471 113,275,321 117,741,684 122,386,861 127,218,326 Other Revenues External Debt Reserve Funds (4) - - - - - Interest Internal DRF (5) 92,541,073 97,025,549 101,853,571 106,402,166 111,310,307 116,599,508 Vail Lake Operations ADv. Trt. Debt CS from JPA (6) Capital Grant Revenue - - - - - Total Other Revenues 92,541,073 97,025,549 101,853,571 106,402,166 111,310,307 116,599,508 Total Funding Sources 197,391,074 206,005,020 215,128,892 224,143,850 233,697,169 243,817,834 Funding Uses Debt Service (7) 66,967,966 66,967,966 82,705,024 82,705,024 82,705,024 82,705,024 Misc. Bond Fees/Other Expenses 424,000 424,000 424,000 424,000 424,000 424,000 JPA Capital CS – Tertiary Trt (8) Transfer to Op. Reserve Fund - - - - - Pay-Go-Capital 17,887,208 17,912,497 18,284,987 18,311,298 18,338,135 18,365,509 Total Funding Uses 85,279,174 85,304,463 101,414,012 101,440,322 101,467,159 101,494,533 Net Sources/(Uses) 112,111,900 120,700,557 113,714,880 122,703,528 132,230,009 142,323,301 Ending Fund Balance $2,425,638,717 2,546,339,275 2,660,054,154 2,782,757,682 2,914,987,691 3,057,310,992 Projected Debt Balance $712,441,666 1,013,550,962 981,523,490 947,894,645 912,584,358 875,508,556
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
240
Rancho California Water District Rancho Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2065 2066 Total
Beginning Fund Balance $3,057,310,992 3,210,323,707 144,707,788
Funding Sources Taxes & Assessments 1% General Purpose (1) 81,754,487 85,024,667 1,901,989,893 Ad Valorem Assessments (2) 48,884,000 50,840,000 1,210,580,000 Capacity Fees - - 29,740,177 Federal Direct Pay Interest Subsidy 26,182,662 CSI Solar Rebate 89,421 Fire Service Charges (3) 165,507 165,507 - Other Tier IV Programs 1,438,735 1,438,735 8,275,346 Total Taxes and Assessments 129,924,470 135,100,125 3,248,794,267 Other Revenues External Debt Reserve Funds (4) - - 11,938,185 Interest Internal Debt Reserve Funds (5) 122,292,440 128,412,948 2,352,866,886 Vail Lake Operations (644,884) Adv. Trt Debt CS from JPA (6) 2,574,479 Capital Grant Revenue - - 600,000 Total Other Revenues 122,292,440 128,412,948 2,367,334,666 Total Funding Sources 254,535,169 265,881,857 5,616,128,933 Funding Uses Debt Service (7) 82,705,024 75,843,955 1,778,607,462 Misc. Bond Fees/Other Expenses 424,000 424,000 21,429,283 JPA Capital CS – Tertiary Trt (8) Transfer to Op. Reserve Fund - - - Pay-Go-Capital 18,393,430 18,421,909 577,377,661 Total Funding Uses 101,522,454 94,689,865 2,377,414,405 Net Sources/(Uses) 153,012,715 171,191,992 3,238,714,528 Ending Fund Balance 3,210,323,707 3,381,515,700 3,383,422,316 Projected Debt Balance $ 1,175,968,052 1,141,953,049 1,141,953,049
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 19/20, then 4.0% per year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of assessed land value indexed at 3.5% growth for FY 16/17, 2.5% growth for FY 17/18, 3.0% growth for FY 18/19, 3.5% growth for FY 19/20, then at 4.0% a year thereafter. Note 3: Fire Service is property assessment applied to commercial properties related to upsizing capital facilities to meet fire flow requirements. Note 4: Reserve funds consist of investment between 1.4% and 4.0% and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
241
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2017 2018 2019 2020 2021 2022 2023
Beginning Fund Balance $9,814,849 7,404,592 6,355,454 6,672,763 7,643,847 7,519,768 9,378,266
Funding Sources Taxes & Assessments 1% General Purpose (1) 2,452,489 2,513,801 2,589,215 2,679,838 2,787,031 2,898,512 3,014,453 Ad Valorem Assessments (2) 7,788,000 7,987,000 8,231,000 8,521,000 8,862,000 9,217,000 9,585,000 Standby Charges (3) 2,740,389 2,767,793 2,795,471 2,820,389 2,820,389 2,820,389 2,820,389 Capacity Fees 105,291 95,077 93,070 95,396 97,781 524,767 537,886 Federal Direct Pay Interest Subsidy 1,162,486 1,162,486 1,162,486 1,162,486 1,162,486 1,162,486 1,162,486 CSI Solar Rebate 431,250 Fire Service Charges 72,440 72,440 72,440 72,440 72,440 72,440 72,440 Other Tier IV Programs 737,005 737,005 737,005 737,005 737,005 737,005 737,005 Total Taxes and Assessments 15,489,349 15,335,602 15,680,686 16,088,554 16,539,132 17,432,599 17,929,659 Other Revenues External DRF (4) 122,629 122,629 122,629 350,370 350,370 350,370 350,370 Interest Internal DRF (5) 259,834 166,603 158,886 166,819 210,206 225,593 328,239 Vail Lake Operations (276,379) - Adv. Treated Debt Rev from JPA (6) 43,495 43,472 53,449 57,744 81,131 69,404 62,985 Capital Grant Revenue 600,000 ------Total Other Revenues 749,580 332,705 334,965 574,932 641,706 645,367 741,594 Total Funding Sources 16,238,929 15,668,307 16,015,651 16,663,486 17,180,839 18,077,966 18,671,253 Funding Uses Debt Service (7) 9,878,793 10,571,188 11,035,441 12,201,492 11,497,324 11,387,112 11,090,822 Misc. Bond Fees/Other Expenses 355,421 152,942 152,942 152,942 152,942 152,942 152,942 JPA Capital CS – Tertiary Treatment (8) 26,359 26,359 26,359 26,359 26,359 Transfer to ORF ------Pay-Go-Capital 8,414,972 5,993,315 4,483,600 3,311,610 5,628,292 4,653,055 4,665,209 Total Funding Uses 18,649,186 16,717,445 15,698,342 15,692,402 17,304,917 16,219,468 15,935,331 Net Sources/(Uses) (2,410,257) (1,049,138) 317,309 971,084 (124,079) 1,858,498 2,735,922 Ending Fund Balance $7,404,592 6,355,454 6,672,763 7,643,847 7,519,768 9,378,266 12,114,188
Projected Debt Balance $145,380,857 152,752,650 149,367,420 144,628,133 140,389,969 136,059,164 196,545,056
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
242
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2024 2025 2026 2027 2028 2029 2030
Beginning Fund Balance $ 12,114,188 11,366,450 11,135,580 12,244,842 14,003,834 14,692,008 15,937,993
Funding Sources Taxes & Assessments 1% General Purpose (1) 3,135,031 3,260,432 3,390,849 3,526,483 3,667,543 3,814,245 3,966,814 Ad Valorem Assessments (2) 9,969,000 10,368,000 10,782,000 11,214,000 11,662,000 12,129,000 12,614,000 Standby Charges (3) 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 Capacity Fees 551,333 565,117 579,244 593,726 608,569 623,783 639,377 Federal Direct Pay Interest Subsidy 1,162,486 1,162,486 1,162,486 1,162,486 1,132,021 1,068,564 999,141 CSI Solar Rebate Fire Service Charges 72,440 72,440 72,440 72,440 72,440 72,440 72,440 Other Tier IV Programs 737,005 737,005 737,005 737,005 737,005 737,005 737,005 Total Taxes and Assessments 18,447,684 18,985,869 19,544,414 20,126,529 20,699,967 21,265,425 21,849,166 Other Revenues External DRF (4) 350,370 350,370 350,370 350,370 350,370 350,370 1,932,696 Interest Internal DRF (5) 484,568 454,658 445,423 489,794 560,153 587,680 637,520 Vail Lake Operations Adv. Trt Debt Rev. from JPA (6) 62,189 61,937 61,411 60,893 60,236 59,938 59,668 Capital Grant Revenue ------Total Other Revenues 897,126 866,964 857,204 901,056 970,759 997,988 2,629,884 Total Funding Sources 19,344,810 19,852,833 20,401,618 21,027,585 21,670,725 22,263,413 24,479,050 Funding Uses Debt Service (7) 15,235,641 15,214,151 15,178,567 15,141,648 16,842,187 16,863,376 16,829,806 Misc. Bond Fees/Other Expenses 152,942 152,942 152,942 152,942 152,942 152,942 152,942 JPA Capital CS – Tertiary Trt (8) 26,359 26,359 26,359 26,359 26,359 26,359 26,359 Transfer to ORF ------Pay-Go-Capital 4,677,606 4,690,251 3,934,488 3,947,644 3,961,064 3,974,751 3,988,713 Total Funding Uses 20,092,548 20,083,703 19,292,357 19,268,593 20,982,552 21,017,428 20,997,819 Net Sources/(Uses) (747,738) (230,870) 1,109,261 1,758,992 688,174 1,245,986 3,481,230 Ending Fund Balance $ 11,366,450 11,135,580 12,244,842 14,003,834 14,692,008 15,937,993 19,419,224 Projected Debt Balance $191,202,580 185,632,630 179,836,058 173,803,467 165,740,402 157,265,515 241,153,225
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
243
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2031 2032 2033 2034 2035 2036 2037
Beginning Fund Balance $19,419,224 16,077,143 17,165,736 13,893,345 11,259,506 14,899,921 10,770,921
Funding Sources Taxes & Assessments 1% General Purpose (1) 4,125,487 4,290,506 4,462,127 4,640,612 4,826,236 5,019,286 5,220,057 Ad Valorem Assessments (2) 13,118,000 13,643,000 14,189,000 14,756,000 15,347,000 15,960,000 16,599,000 Standby Charges (3) 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 Capacity Fees 655,362 671,746 688,540 705,753 723,397 741,482 760,019 Federal Direct Pay Interest Subsidy 924,031 885,354 867,850 831,921 794,301 716,997 598,318 CSI Solar Rebate Fire Service Charges 72,440 72,440 72,440 72,440 72,440 72,440 72,440 Other Tier IV Programs 737,005 737,005 737,005 737,005 737,005 737,005 737,005 Total Taxes and Assessments 22,452,714 23,120,439 23,837,350 24,564,120 25,320,768 26,067,598 26,807,227 Other Revenues External DRF (4) 287,076 1,865,997 223,920 223,920 5,821,911 - - Interest Internal DRF (5) 776,769 643,086 686,629 555,734 450,380 595,997 430,837 Vail Lake Operations Adv. Trt. Debt Rev from JPa (6) 72,009 72,028 8,892 8,850 8,842 1,719 1,692 Capital Grant Revenue Total Other Revenues 1,135,854 2,581,110 919,441 788,503 6,281,132 597,716 432,529 Total Funding Sources 23,588,568 25,701,550 24,756,791 25,352,623 31,601,900 26,665,314 27,239,756 Funding Uses Debt Service (7) 22,449,146 20,116,928 23,518,339 23,460,505 23,420,115 29,691,360 29,565,515 Misc. Bond Fees/Other Expenses 152,942 152,942 152,942 152,942 152,942 152,942 152,942 JPA Capital CS – Tertiary Trt. (8) 26,359 26,359 26,359 26,359 26,359 26,359 26,359 Transfer to ORF ------Pay-Go-Capital 4,302,202 4,316,728 4,331,544 4,346,656 4,362,070 923,654 939,691 Total Funding Uses 26,930,649 24,612,956 28,029,183 27,986,462 27,961,485 30,794,314 30,684,507 Net Sources/(Uses) (3,342,081) 1,088,593 (3,272,392) (2,633,839) 3,640,415 (4,129,000) (3,444,751) Ending Fund Balance $ 16,077,143 17,165,736 13,893,345 11,259,506 14,899,921 10,770,921 7,326,170 Projected Debt Balance $ 230,792,807 222,338,741 210,013,444 197,110,951 344,500,278 332,130,186 319,200,301
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
244
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2038 2039 2040 2041 2042 2043 2044
Beginning Fund Balance $ 7,326,170 4,628,053 2,741,062 2,650,853 1,338,993 8,776,382 15,037,540
Funding Sources Taxes & Assessments 1% General Purpose (1) 5,428,859 5,646,014 5,871,854 6,106,728 6,350,997 6,605,037 6,869,239 Ad Valorem Assessments (2) 17,263,000 17,953,000 18,671,000 19,418,000 20,195,000 21,003,000 21,843,000 Standby Charges (3) 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 Capacity Fees 779,019 798,495 1,734,250 1,777,606 2,517,706 - - Federal Direct Pay Interest Subsidy 474,631 345,739 211,423 71,441 CSI Solar Rebate Fire Service Charges 72,440 72,440 72,440 72,440 72,440 72,440 72,440 Other Tier IV Programs 737,005 737,005 737,005 737,005 737,005 737,005 737,005 Total Taxes and Assessments 27,575,343 28,373,081 30,118,360 31,003,608 32,693,537 31,237,871 32,342,072 Other Revenues External DRF (4) ------Interest Internal DRF (5) 293,047 185,122 109,642 106,034 53,560 351,055 601,502 Vail Lake Operations Adv. Trt. Debt Rev from JPA (6) 1,663 1,633 1,602 1,570 Capital Grant Revenue ------Total Other Revenues 294,710 186,755 111,244 107,604 53,560 351,055 601,502 Total Funding Sources 27,870,053 28,559,836 30,229,604 31,111,212 32,747,097 31,588,926 32,943,574 Funding Uses Debt Service (7) 29,432,820 29,294,793 29,150,760 29,160,567 22,029,496 22,029,496 22,029,496 Misc. Bond Fees/Other Expenses 152,942 152,942 152,942 152,942 152,942 152,942 152,942 JPA Capital CS – Tertiary Trt. (8) 26,359 26,359 26,359 26,359 26,359 26,359 26,359 Transfer to Operating Reserve Fund ------Pay-Go-Capital 956,049 972,734 989,753 3,083,204 3,100,911 3,118,971 3,137,393 Total Funding Uses 30,568,169 30,446,827 30,319,814 32,423,072 25,309,708 25,327,768 25,346,190 Net Sources/(Uses) (2,698,117) (1,886,991) (90,209) (1,311,860) 7,437,389 6,261,158 7,597,384 Ending Fund Balance $4,628,053 2,741,062 2,650,853 1,338,993 8,776,382 15,037,540 22,634,925 Projected Debt Balance $305,686,397 291,561,346 279,233,118 263,762,301 254,793,108 245,393,374 235,542,003
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
245
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2045 2046 2047 2048 2049 2050 2051
Beginning Fund Balance $22,634,925 31,666,184 39,153,242 48,162,424 59,502,672 73,074,394 88,591,898
Funding Sources Taxes & Assessments 1% General Purpose (1) 7,144,008 7,429,769 7,726,960 8,036,038 8,357,479 8,691,779 9,039,450 Ad Valorem Assessments (2) 22,717,000 23,625,000 24,570,000 25,553,000 26,575,000 27,638,000 28,744,000 Standby Charges (3) 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 Capacity Fees ------Federal Direct Pay Interest Subsidy CSI Solar Rebate Fire Service Charges 72,440 72,440 72,440 72,440 72,440 72,440 72,440 Other Tier IV Programs 737,005 737,005 737,005 737,005 737,005 737,005 737,005 Total Taxes and Assessments 33,490,842 34,684,602 35,926,793 37,218,871 38,562,313 39,959,612 41,413,283 Other Revenues External DRF (4) ------Interest Internal DRF (5) 905,397 1,266,647 1,566,130 1,926,497 2,380,107 2,922,976 3,543,676 Vail Lake Operations Adv. Trt. Debt Rev from JPA (6) Capital Grant Revenue ------Total Other Revenues 905,397 1,266,647 1,566,130 1,926,497 2,380,107 2,922,976 3,543,676 Total Funding Sources 34,396,239 35,951,250 37,492,923 39,145,368 40,942,420 42,882,588 44,956,959 Funding Uses Debt Service (7) 22,029,496 24,889,012 24,889,012 24,190,451 23,735,689 23,735,689 26,882,121 Misc. Bond Fees/Other Expenses 152,942 152,942 152,942 152,942 152,942 152,942 152,942 JPA Capital CS – Tertiary Trt (8) 26,359 26,359 26,359 26,359 26,359 Transfer to ORF ------Pay-Go-Capital 3,156,183 3,395,879 3,415,428 3,435,368 3,455,707 3,476,453 6,350,277 Total Funding Uses 25,364,980 28,464,192 28,483,741 27,805,120 27,370,697 27,365,084 33,385,340 Net Sources/(Uses) 9,031,259 7,487,058 9,009,182 11,340,248 13,571,722 15,517,504 11,571,619 Ending Fund Balance $31,666,184 39,153,242 48,162,424 59,502,672 73,074,394 88,591,898 100,163,517 Projected Debt Balance $269,174,621 257,690,837 245,652,583 233,731,180 221,682,032 257,398,796 243,386,597
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
246
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2052 2053 2054 2055 2056 2057 2058
Beginning Fund Balance $100,163,517 113,687,995 129,302,477 151,364,655 175,986,142 182,239,181 190,557,427
Funding Sources Taxes & Assessments 1% General Purpose (1) 9,401,028 9,777,069 10,168,152 10,574,878 10,997,873 11,437,788 11,895,299 Ad Valorem Assessments (2) 29,894,000 31,089,000 32,333,000 33,626,000 34,971,000 36,370,000 37,825,000 Standby Charges (3) 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 Capacity Fees ------Federal direct Pay Interest Subsidy CSI Solar Rebate Fire Service Charges 72,440 72,440 72,440 72,440 72,440 72,440 72,440 Other Tier IV Programs 737,005 737,005 737,005 737,005 737,005 737,005 737,005 Total Taxes and Assessments 42,924,861 44,495,902 46,130,985 47,830,711 49,598,706 51,437,621 53,350,133 Other Revenues External DRF (4) ------Interest Internal DRF (5) 4,006,541 4,547,520 5,172,099 6,054,586 7,039,446 7,289,567 7,622,297 Vail Lake Operations Adv Trt. Debt Revenue from JPA (6) Capital Grant Revenue ------Total Other Revenues 4,006,541 4,547,520 5,172,099 6,054,586 7,039,446 7,289,567 7,622,297 Total Funding Sources 46,931,402 49,043,422 51,303,084 53,885,297 56,638,152 58,727,188 60,972,430 Funding Uses Debt Service (7) 26,882,121 26,882,121 22,671,631 22,671,631 29,529,460 29,529,460 29,529,460 Misc. Bond Fees/Other Expenses 152,942 152,942 152,942 152,942 152,942 152,942 152,942 JPA Capital CS – Tertiary Trt (8) Transfer to Operating Reserve Fund ------Pay-Go-Capital 6,371,861 6,393,877 6,416,333 6,439,238 20,702,710 20,726,541 20,750,848 Total Funding Uses 33,406,924 33,428,940 29,240,906 29,263,811 50,385,112 50,408,943 50,433,250 Net Sources/(Uses) 13,524,478 15,614,482 22,062,178 24,621,486 6,253,040 8,318,246 10,539,180 Ending Fund Balance $113,687,995 129,302,477 151,364,655 175,986,142 182,239,181 190,557,427 201,096,607 Projected Debt Balance $228,673,788 213,225,338 201,214,956 294,025,692 279,197,498 263,627,895 247,279,812
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
247
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2059 2060 2061 2062 2063 2064
Beginning Fund Balance $ 201,096,607 214,021,373 229,505,685 224,062,212 220,611,913 219,323,399
Funding Sources Taxes & Assessments 1% General Purpose (1) 12,371,111 12,865,956 13,380,594 13,915,818 14,472,450 15,051,348 Ad Valorem Assessments (2) 39,338,000 40,911,000 42,548,000 44,250,000 46,020,000 47,861,000 Standby Charges (3) 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 2,820,389 Capacity Fees ------Federal Direct Pay Interest Subsidy CSI Solar Rebate Fire Service Charges 72,440 72,440 72,440 72,440 72,440 72,440 Other Tier IV Programs 737,005 737,005 737,005 737,005 737,005 737,005 Total Taxes and Assessments 55,338,945 57,406,789 59,558,427 61,795,651 64,122,284 66,542,182 Other Revenues External DRF (4) ------Interest Internal DRF (5) 8,043,864 8,560,855 9,180,227 8,962,488 8,824,477 8,772,936 Vail Lake Operations Adv. Trt Debt Revenue from JPA (6) Capital Grant Revenue - - - - - Total Other Revenues 8,043,864 8,560,855 9,180,227 8,962,488 8,824,477 8,772,936 Total Funding Sources 63,382,809 65,967,644 68,738,655 70,758,140 72,946,760 75,315,118 Funding Uses Debt Service (7) 29,529,460 29,529,460 48,874,742 48,874,742 48,874,742 48,874,742 Misc. Bond Fees/Other Expenses 152,942 152,942 152,942 152,942 152,942 152,942 JPA Capital CS – Tertiary Trt (8) Transfer to Operating Reserve Fund ------Pay-Go-Capital 20,775,641 20,800,930 25,154,443 25,180,754 25,207,591 25,234,964 Total Funding Uses 50,458,043 50,483,332 74,182,128 74,208,438 74,235,275 74,262,649 Net Sources/(Uses) 12,924,766 15,484,312 (5,443,473) (3,450,299) (1,288,515) 1,052,469 Ending Fund Balance $214,021,373 229,505,685 224,062,212 220,611,913 219,323,399 220,375,868 Projected Debt Balance $230,114,324 602,314,390 583,555,349 563,858,356 543,176,513 521,460,578
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
248
Rancho California Water District Santa Rosa Division Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2065 2066 Total
Beginning Fund Balance 220,375,868 223,958,568 9,814,849
Funding Sources Taxes & Assessments 1% General Purpose (1) 15,653,402 16,279,538 288,455,004 Ad Valorem Assessments (2) 49,775,000 51,766,000 917,214,000 Standby Charges (3) 2,820,389 2,820,389 126,759,991 Capacity Fees - - 18,263,790 Federal Direct Pay Interest Subsidy 22,709,083 CSI Solar Rebate Fire Service Charges 72,440 72,440 3,259,789 Other Tier IV Programs 737,005 737,005 Total Taxes and Assessments 69,058,236 71,675,372 1,376,661,656 Other Revenues External DRF (4) - - 14,227,102 Interest Internal DRF (5) 8,815,035 8,958,343 93,043,803 Vail Lake Operations Adv. Trt Debt Revenue from JPA (6) Capital Grant Revenue - - - Total Other Revenues 8,815,035 8,958,343 107,870,905 Total Funding Sources 77,873,270 80,633,715 1,484,532,561 Funding Uses Debt Service (7) 48,874,742 69,421,962 1,010,297,904 Misc. Bond Fees/Other Expenses 152,942 152,942 7,084,867 JPA Capital CS – Tertiary Trt (8) Transfer to Operating Reserve Fund - - - Pay-Go-Capital 25,262,885 25,291,365 286,423,846 Total Funding Uses 74,290,570 94,866,269 1,303,806,617 Net Sources/(Uses) 3,582,701 (14,232,555) 180,725,944 Ending Fund Balance $223,958,568 209,726,014 190,540,793 Projected Debt Balance $975,437,048 954,786,920 583,555,349
Note 1: 1% Tax revenue is indexed at 4.0% growth for FY 16/17, 2.5% growth for FY 17/18, then 3.0% growth for FY 19/20, then 4% a year thereafter. Note 2: Ad Valorem revenue is based upon a rate of $0.30 per $100 of land value indexed at 3.5% growth for FY 16/17, 2.5% for FY 17/18, 3.0% for FY 18/19, 3.5% for FY 19/20, then at 4% per year thereafter. Note 3: Fire Service is a property assessment applied to commercial properties related to upsizing capital facilities to meet commercial fire flow req. Note 4: Reserve funds consist of investment earning between 1.4% and 4.0 % and principal maturities. Note 5: Projected investment earnings are calculated at 2.25% for FYs 16/17, and FY 17/18, 2.5% for FY 18/19 and FY 19/20, 2.75% for FY 20/21, 3.0% for FY 21/22, 3.50% for FY 22/23, then 4% per year thereafter. Note 6: Cost share of existing debt service per SRRRA JPA Agreement with Elsinore Valley MWD and Wester MWD. Note 7. Debt service costs include taxes for CFD 89-5, ends in FY 2028. Note 8. RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
249
Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2017 2018 2019 2020 2021 2022 2023
Beginning Fund Balance $15,541,683 8,081,059 9,023,799 9,189,404 9,356,015 9,716,326 10,012,625
Funding Sources Capacity Fees (1) 997,415 1,211,859 1,346,510 1,346,510 1,346,510 1,346,510 1,121,145 Federal Direct Pay Interest Subsidy ------Standby Charges 18,827 18,827 18,827 18,827 18,827 18,827 18,827 External Debt Reserve Funds (2) 31,960 25,568 20,454 16,364 13,091 10,473 8,378 Interest Internal DRF (3) 70,824 70,824 70,824 202,354 202,354 202,354 202,354 JPA - Debt Service Revenue (4) 2,368,148 2,367,330 Replacement Surcharge(5) 399,017 404,646 410,901 417,156 423,411 429,666 434,874 Debt Service Surcharge (6) 623,464 809,292 898,846 912,528 926,211 939,894 951,286 Total Funding Sources 4,913,342 5,090,170 2,991,957 3,143,474 3,187,694 3,239,212 3,087,306 Funding Uses Debt Service Debt Service (7) 2,898,836 2,897,888 1,650,803 1,650,803 1,650,803 1,650,803 1,650,803 Misc. Bond Fees/Other Expenses 114,631 114,631 114,631 114,631 114,631 114,631 114,631 JPA Cap. Rsv Contribution (8) 7,130,679 JPA Cap. CS – Pri/Sec Treatment(9) 0 0 1,010,418 1,010,418 1,010,418 1,010,418 1,010,418 Pay-Go-Capital 2,229,820 1,134,910 50,500 201,010 51,530 167,061 167,602 Total Debt Service 12,373,966 4,147,429 2,826,353 2,976,863 2,827,383 2,942,913 2,943,455 Total Funding Uses 12,373,966 4,147,429 2,826,353 2,976,863 2,827,383 2,942,913 2,943,455 Net Sources/(Uses) (7,460,624) 942,741 165,604 166,611 360,311 296,299 143,851 Ending Fund Balance $8,081,059 9,023,799 9,189,404 9,356,015 9,716,326 10,012,625 10,156,476 Projected Debt Balance $60,980,686 $60,964,543 $60,211,138 $20,898,006 $20,083,123 $19,235,645 $18,354,268
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
250 Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2024 2025 2026 2027 2028 2029 2030
Beginning Fund Balance $10,156,476 10,389,559 10,665,368 10,933,559 11,231,783 11,541,338 11,879,266 Funding Sources Capacity Fees (1) 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 Federal Direct Pay Interest Subsidy 18,827 18,827 18,827 18,827 18,827 18,827 18,827 Standby Charges 8,378 8,378 8,378 8,378 8,378 8,378 8,378 External DRF (2) 202,354 202,354 202,354 202,354 202,354 202,354 638,536 Interest Internal DRF (3) 406,259 415,582 426,615 437,342 449,271 461,654 475,171 JPA – Debt Service Revenue (4) Replacement Surcharge (5) 445,530 456,186 466,842 473,082 473,082 478,290 483,498 Debt Service Surcharge (6) 974,596 997,906 1,021,216 1,034,866 1,034,866 1,046,259 1,057,651 Total Funding Sources 3,177,089 3,220,379 3,265,377 3,295,995 3,307,924 3,336,906 3,803,206 Funding Uses Debt Service Debt Service (7) 1,650,803 1,650,803 1,650,803 1,650,803 1,650,803 1,650,803 1,650,803 Misc. Bond Fees/Other Expenses 114,631 114,631 114,631 114,631 114,631 114,631 114,631 JPA Capital Rsv. Contribution (8) 240,773 JPA Capital CS – Pri/Sec Trt (9) 1,010,418 1,010,418 1,062,460 1,062,460 1,062,460 1,062,460 1,062,460 Pay-Go-Capital 168,154 168,717 169,291 169,877 170,475 171,084 171,706 Total Debt Service 2,944,007 2,944,570 2,997,185 2,997,771 2,998,369 2,998,978 3,240,373 Total Funding Uses 2,944,007 2,944,570 2,997,185 2,997,771 2,998,369 2,998,978 3,240,373 Net Sources/(Uses) 233,083 275,809 268,192 298,224 309,555 337,928 562,834 Ending Fund Balance $10,389,559 10,665,368 10,933,559 11,231,783 11,541,338 11,879,266 12,442,100 Projected Debt Balance $17,437,635 $17,284,338 $16,280,867 $15,237,138 $14,151,532 $13,022,370 $13,047,902
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
251 Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2031 2032 2033 2034 2035 2036 2037
Beginning Fund Balance $12,442,100 12,752,495 13,546,868 13,892,297 14,266,706 16,286,548 16,563,809 Funding Sources Capacity Fees (1) 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 Federal Direct Pay Interest Subsidy 18,827 18,827 18,455 17,691 16,891 15,247 12,723 Standby Charges 8,378 8,378 8,378 8,378 8,378 8,378 8,378 External DRF (2) 184,906 1,201,892 144,227 144,227 3,749,902 - - Interest Internal DRF (3) 497,684 510,100 541,875 555,692 570,668 651,462 662,552 JPA – Debt Service Revenue (4) Replacement Surcharge (5) 488,706 493,914 499,122 504,330 509,538 514,746 519,954 Debt Service Surcharge (6) 1,069,044 1,080,436 1,091,829 1,103,221 1,114,614 1,126,006 1,137,399 Total Funding Sources 3,388,690 4,434,692 3,425,031 3,454,684 7,091,136 3,436,984 3,462,151 Funding Uses Debt Service Debt Service (7) 1,650,803 1,650,803 1,650,803 1,650,803 1,650,803 1,650,803 1,650,803 Misc. Bond Fees/Other Expenses 114,631 114,631 114,631 114,631 114,631 114,631 114,631 JPA Capital Rsv. Contribution (8) 561,376 1,990,333 JPA Capital CS – Pri/Sec Trt (9) 1,140,521 1,140,521 1,140,521 1,140,521 1,140,521 1,218,583 1,218,583 Pay-Go-Capital 172,340 172,987 173,647 174,320 175,006 175,706 176,420 Total Debt Service 3,078,296 3,640,318 3,079,602 3,080,275 5,071,294 3,159,723 3,160,437 Total Funding Uses 3,078,296 3,640,318 3,079,602 3,080,275 5,071,294 3,159,723 3,160,437 Net Sources/(Uses) 310,395 794,374 345,428 374,409 2,019,842 277,261 301,714 Ending Fund Balance $12,752,495 13,546,868 13,892,297 14,266,706 16,286,548 16,563,809 16,865,523 Projected Debt Balance $11,808,246 $10,518,670 $9,177,161 $7,781,622 $7,529,875 $6,001,590 $4,411,566
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
252 Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2038 2039 2040 2041 2042 2043 2044
Beginning Fund Balance $16,865,523 17,192,547 17,771,204 19,382,415 20,969,516 22,735,029 24,572,962 Funding Sources Capacity Fees (1) 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 1,121,145 Federal Direct Pay Interest Subsidy 10,093 7,352 4,496 1,519 Standby Charges 8,378 8,378 8,378 8,378 8,378 8,378 8,378 External DRF (2) ------Interest Internal DRF (3) 674,621 687,702 710,848 775,297 838,781 909,401 982,918 JPA – Debt Service Revenue (4) Replacement Surcharge (5) 525,162 132,592 133,894 135,196 136,498 137,800 139,102 Debt Service Surcharge (6) 1,148,791 132,592 133,894 135,196 136,498 137,800 139,102 Total Funding Sources 3,488,190 2,089,762 2,112,656 2,176,732 2,241,301 2,314,526 2,390,647 Funding Uses Debt Service Debt Service (7) 1,650,803 ------Misc. Bond Fees/Other Expenses 114,631 114,631 114,631 114,631 JPA Capital Rsv. Contribution (8) JPA Capital CS – Pri/Sec Trt (9) 1,218,583 1,218,583 208,165 295,577 295,577 295,577 295,577 Pay-Go-Capital 177,149 177,892 178,649 179,422 180,211 181,015 181,835 Total Debt Service 3,161,166 1,511,106 501,445 589,631 475,788 476,593 477,413 Total Funding Uses 3,161,166 1,511,106 501,445 589,631 475,788 476,593 477,413 Net Sources/(Uses) 327,024 578,657 1,611,211 1,587,101 1,765,513 1,837,933 1,913,234 Ending Fund Balance 17,192,547 17,771,204 19,382,415 20,969,516 22,735,029 24,572,962 26,486,196 Projected Debt Balance $2,757,303 $2,687,004 $3,956,939 $3,859,208 $3,756,591 $3,648,843 $3,535,708
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
253 Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2045 2046 2047 2048 2049 2050 2051
Beginning Fund Balance $26,486,196 28,477,727 30,468,548 32,540,735 34,697,526 36,914,351 38,125,651 Funding Sources Capacity Fees (1) 1,121,145 1,121,145 1,121,145 1,121,145 1,093,274 - - Federal Direct Pay Interest Subsidy 10,093 7,352 4,496 1,519 Standby Charges 8,378 8,378 8,378 8,378 8,378 8,378 8,378 External DRF (2) ------Interest Internal DRF (3) 1,059,448 1,139,109 1,218,742 1,301,629 1,387,901 1,476,574 1,525,026 JPA – Debt Service Revenue (4) Replacement Surcharge (5) 140,404 141,706 143,008 144,310 145,580 145,580 145,580 Debt Service Surcharge (6) 140,404 141,706 143,008 144,310 145,580 145,580 145,580 Total Funding Sources 2,469,780 2,552,045 2,634,282 2,719,774 2,780,714 1,776,112 1,824,564 Funding Uses Debt Service Debt Service (7) ------Misc. Bond Fees/Other Expenses JPA Capital Rsv. Contribution (8) JPA Capital CS – Pri/Sec Trt (9) 295,577 377,699 377,699 377,699 377,699 377,699 470,871 Pay-Go-Capital 182,672 183,526 184,396 185,284 186,190 187,114 188,056 Total Debt Service 478,250 561,224 562,095 562,983 563,889 564,812 658,927 Total Funding Uses 478,250 561,224 562,095 562,983 563,889 564,812 658,927 Net Sources/(Uses) 1,991,531 1,990,821 2,072,187 2,156,791 2,216,825 1,211,300 1,165,638 Ending Fund Balance $28,477,727 30,468,548 32,540,735 34,697,526 36,914,351 38,125,651 39,291,288 Projected Debt Balance $4,679,323 $4,535,590 $4,384,671 $4,226,206 $4,059,817 $5,317,393 $5,112,392
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
254 Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2052 2053 2054 2055 2056 2057 2058
Beginning Fund Balance $39,291,288 40,502,590 41,761,364 43,069,489 44,428,918 45,777,262 47,178,478 Funding Sources Capacity Fees (1) ------Federal Direct Pay Interest Subsidy 10,093 7,352 4,496 1,519 Standby Charges 8,378 8,378 8,378 8,378 8,378 8,378 8,378 External DRF (2) ------Interest Internal DRF (3) 1,571,652 1,620,104 1,670,455 1,722,780 1,777,157 1,831,090 1,887,139 JPA – Debt Service Revenue (4) Replacement Surcharge (5) 145,580 145,580 145,580 145,580 145,580 145,580 145,580 Debt Service Surcharge (6) 145,580 145,580 145,580 145,580 145,580 145,580 145,580 Total Funding Sources 1,871,190 1,919,642 1,969,993 2,022,318 2,076,695 2,130,629 2,186,677 Funding Uses Debt Service Debt Service (7) ------Misc. Bond Fees/Other Expenses JPA Capital Rsv. Contribution (8) JPA Capital CS – Pri/Sec Trt (9) 470,871 470,871 470,871 470,871 535,294 535,294 535,294 Pay-Go-Capital 189,017 189,997 190,997 192,017 193,057 194,119 195,201 Total Debt Service 659,888 660,868 661,868 662,888 728,351 729,412 730,495 Total Funding Uses 659,888 660,868 661,868 662,888 728,351 729,412 730,495 Net Sources/(Uses) 1,211,302 1,258,774 1,308,125 1,359,430 1,348,344 1,401,216 1,456,183 Ending Fund Balance $40,502,590 41,761,364 43,069,489 44,428,918 45,777,262 47,178,478 48,634,661 Projected Debt Balance $4,897,141 $4,671,127 $4,433,812 $5,974,970 $5,738,425 $5,490,052 $5,229,261
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
255 Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2059 2060 2061 2062 2063 2064 2065
Beginning Fund Balance $48,634,661 50,147,987 51,720,719 53,286,746 55,060,771 56,904,562 58,820,885 Funding Sources Capacity Fees (1) ------Federal Direct Pay Interest Subsidy Standby Charges 8,378 8,378 8,378 8,378 8,378 8,378 8,378 External DRF (2) ------Interest Internal DRF (3) 1,945,386 2,005,919 2,068,829 2,131,470 2,202,431 2,276,182 2,352,835 JPA – Debt Service Revenue (4) Replacement Surcharge (5) 145,580 145,580 145,580 145,580 145,580 145,580 145,580 Debt Service Surcharge (6) 145,580 145,580 145,580 145,580 145,580 145,580 145,580 Total Funding Sources 2,244,925 2,305,458 2,368,367 2,431,008 2,501,969 2,575,721 2,652,374 Funding Uses Debt Service Debt Service (7) ------Misc. Bond Fees/Other Expenses JPA Capital Rsv. Contribution (8) JPA Capital CS – Pri/Sec Trt (9) 535,294 535,294 603,760 457,232 457,232 457,232 457,232 Pay-Go-Capital 196,305 197,431 198,580 199,751 200,946 202,165 203,409 Total Debt Service 731,599 732,725 802,340 656,983 658,178 659,397 660,641 Total Funding Uses 731,599 732,725 802,340 656,983 658,178 659,397 660,641 Net Sources/(Uses) 1,513,326 1,572,733 1,566,027 1,774,025 1,843,791 1,916,323 1,991,733 Ending Fund Balance $50,147,987 51,720,719 53,286,746 55,060,771 56,904,562 58,820,885 60,812,618 Projected Debt Balance $4,955,430 $6,920,407 $6,662,667 $6,427,638 $6,180,858 $5,921,739 $8,569,029
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
256 Rancho California Water District Santa Rosa Water Reclamation Long-Range Capital Financing Plan
Fiscal Year Ending June 30, 2066 Total
Beginning Fund Balance $60,812,618 37,838,367 Funding Sources Capacity Fees (1) - - Federal Direct Pay Interest Subsidy - 405,705 Standby Charges 8,378 444,656 External DRF (2) - 8,299,700 Interest Internal DRF (3) 2,432,505 41,790,498 JPA – Debt Service Revenue (4) 4,735,478 Replacement Surcharge (5) 145,580 13,528,701 Debt Service Surcharge (5) 145,580 25,377,274 Total Funding Sources 6,369,344 132,420,379 Funding Uses Debt Service Debt Service (7) 95,519,033 Misc. Bond Fees/Other Expenses 2,917,642 74,649,277 JPA Capital Rsv Contribution (8) 3,471,101 JPA Capital CS – Prim/Sec Treatment (9) 715,608 Pay-Go-Capital 204,677 10,902,297 Total Debt Service 920,284 52,580,860 Total Funding Uses 920,284 52,580,860 Net Sources/(Uses) 1,811,759 79,839,519 Ending Fund Balance $62,624,376 95,381,201 Projected Debt Balance $8,316,911
Note 1: From EDU absorption calculations, capacity fee indexed at 8% through 2018. Note 2: Reserve funds consist of investment earnings at 4.0% and principal maturities. Note 3: Projected investment earnings are calculated at 2.25 % for FYs 16/17, 2.5% for FY 17/18, 2.75% for FY 18/19, 3.0% for 19/20, 3.50% for FY 20/21, then 4% per year thereafter. Note 4: Monthly surcharge for Replacement $4 per EDU per month. Note 5: Monthly surcharge for Debt Service $6.25 per EDU per month in FY 17 and FY 18 $8.00 per month thereafter. Note 6: Per Master Plan as provided by Engineering Planning Manager. Borrowing rate @ 5%, Term 30 years. Note 7: Includes RCWD’s portion of SRWRF Debt assumed by SRRRA JPA once facilities are acquired by SRRRA per SRRRA JPA Agreement. Note 8: RCWD’s share of new facility project costs (SRWRF Rehabilitation Project) from the SRRRA JPA.
257 Fiscal Year 2016-2017 Operating Budget
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258 Rancho California Water District GLOSSARY
Glossary of Abbreviations CASA – California Association of Sanitation Agencies AB 1881 – Assembly Bill that provides for a new updated model water efficient landscape CFD – Community Facility District ordinance to reflect the improvements in CIP – Capital Improvement Projects irrigation technology and to continue to promote water efficiencies in landscaping. CIS – Customer Information System. Windows-based, web enabled application AB 1600 – In 1987, the Legislature passed information system with the ability to plan, Assembly Bill 166 better known as the control, and account for RCWD’s customer Mitigation Fee Act, which established a service billing. process by which the District may impost capacity fees on new development in order to CMMS – Computerized Maintenance finance construction of capital facilities. The Management System. Software pkg. that funds collected for the capacity fee must be maintains a computer database of information recognized in a separate fund account and not about an organizations maintenance commingled with any other revenue, operations. restricted for construction of capital facilities. CUWCC BMP – California Urban Water ACWA – Association of California Water Conservation Best Management Practice Agencies CWRMA – Cooperative Water Resources ACD – Automatic Call Distribution Management Agreement
Acre-Foot (AF) – 325,829 gallons or 435.6 DRF – Debt Reserve Fund hundred cubic feet of water. DTO – Delinquent Turn Off Ag – Agriculture/agricultural DWR – Department of Water Resources
AIEP – Agricultural Irrigation Efficiency EAIEP – Enhanced Agricultural Irrigation Program Efficiency Program
AMR – Automatic Meter Reading EDU – Equivalent dwelling unit
APN – Assessor’s Parcel Number EMWD – Eastern Municipal Water District
AWMP – Agricultural Water Management EM 13 – An imported water connection Plan prepared by a water purveyor to ensure located at Margarita Road and Rancho the appropriate level of reliability in water California Road through which the District service sufficient to meet the needs of purchases treated domestic water from customers during normal, dry, or multiple dry EMWD delivered from the MWD aqueducts years. passing through the District.
EM 19 – An imported water connection AWTPP – Agricultural Wireless Telemetry located at Santiago Road and Vallejo Road Pilot Project through which the District purchases
AWWA – American Water Works Assoc. untreated domestic water from EMWD delivered from the MWD aqueducts passing BMP – Best Management Practices through the District.
259 Rancho California Water District GLOSSARY
Abbreviations cont. HCF – Hundred cubic feet
EM 20 – An imported water connection HOA – Home Owners Association located at San Diego Pipe #3 through which the District purchases treated domestic water HQ – Head Quarters (Main District Office) from EMWD delivered from the MWD H.R. 146 – the House of Representative’s aqueducts passing through the District. legislative approval for RCWD’s Title XVI project and annual appropriations thereafter. EQIP – Environmental Quality Incentives Program provides financial and technical H.R. 1725 – Amend the Reclamation assistance to agricultural producers in order to Wastewater and Groundwater Study and address natural resource concerns and deliver Facilities Act to authorize the Secretary of the environmental benefits such as improved Interior to participate in the Rancho water quality, conserved ground and surface California Water District Southern Riverside water, and reduced soil erosion. County Recycled/Non-Potable Distribution Facilities and Demineralization/Desalination ERP – Enterprise Resource Planning Recycled Water Treatment and Reclamation
Facility Project. EUM – Effective Utility Management IAWP – Interim Agricultural Water Program EVMWD – Elsinore Valley Municipal Water provides discounted wholesale supply and District treatment pricing for qualified agricultural users within its service area on the basis that FP – Facility Planning & Management, type participants receive non-firm, interruptible of project is the planning or engineering study supply up to the maximum allowed under related to a capitalized infrastructure Section 4901 of the MWD Administrative improvement, which is not associated with Code. the engineering design work in the aforementioned categories. Typically, this ITMP – Information Technology Master activity consists of asset management Plan planning, facility master planning, or other IRWMP – Integrated Resource Water facility management plans. Management Plan
FTE – Full Time Equivalent IRP – Integrated Resource Plan, a study
GAPP – Generally Accepted Accounting developed as a long-term supply plan that will Principles help meet water demands for the District from now until 2050 (ultimate build out). GASB – Governmental Accounting Standards Board IVR – Interactive Voice Response
GFOA – Government Finance Officers JPA – Joint Powers Agreement Association JPIA – Joint Powers Insurance Authority GIC – Guaranteed Investment Contract LAFCO – Riverside Local Agency Formation GPS – Global Positioning System Commission
GWMP – Groundwater Management Plan LRFP – Long Range Financial Plan
260 Rancho California Water District GLOSSARY
Abbreviations cont. RCWDMPCEA – Rancho California Water District Management, Professional, and M&I – Municipal and Industrial Confidential Employees’ Association
MCBCP – Marine Corps Base, Camp REG – Regulatory, type of project is required Pendleton due to a permit requirement, mandated MCWD – Murrieta County Water District regulation, or legislation.
MISAC – Municipal Information Systems RP – Reduced pressure backflow prevention Association of California device
MOU – Memorandum of Understanding RQC – Requisition Center
MPCEA – Professional and Confidential R&R – Repair & Replacement, type of Employee’s Association project is to replace a refurbish infrastructure, which has exceeded its useful life or is MWD – The Metropolitan Water District of functionally obsolete. Repair and replacement Southern California projects are evaluated and prioritized on their condition assessment, likelihood of failure, ND – New Development, type of project is and consequence of failure. required to provide service to new development or to facilitate planned RWQCB – Regional Water Quality Control development, which may also provide a Board system operating improvement.
NRCS – Natural Resources Conservation SBX-7 – Senate Bill X7-7 was enacted in Service Soils November 2009 requiring all water suppliers to increase water use efficiency. OEI – Operational Efficiency Improvement, type of project improves system operational SCADA – Supervisory Control and Data efficiency by improving the level of service Acquisition uses computer technology to provided, correcting existing system monitor and control remote facilities such as deficiencies, and/or reducing operating costs. pumps and reservoirs.
OSG – On-Site Generation SCE – Southern California Edison
PERS – Public Employees Retirement SLA – Service Level Agreements System SNMP – Salt/Nutrient Management Plan PLC – Programmable Logic Controller SRRRA – Santa Rosa Regional Resources PS – Pump Station Authority
PTT – Push-To-Talk SRWRF – Santa Rosa Water Reclamation Facility. The District’s 5.0 million gallons per QIP – Quality Improvement Process day sequencing batch reactor treatment
RCWD – Rancho California Water District facility.
RCWDEA – Rancho California Water SWRCB – State Water Resources Control District Employees’ Association Board
T & D – Transmission & Distribution
261 Rancho California Water District GLOSSARY
Abbreviations cont. WSCP – Water Shortage Contingency Plan
TDS – Total Dissolved Solids is a measure of the combined content of all inorganic and organic substances contained in a liquid in molecular, ionized, or micro-granular suspended form.
TRR – Total Recordable Injury Rate
USBR – U.S. Bureau of Reclamation
USGS – U.S. Geological Survey
USMW – Upper Santa Margarita Watershed
VDC – Valle de Los Caballos
VDCR/RF – Valle de Los Caballos Recharge/Recovery Facility
WMWD – Western Municipal Water District
WR – Water Resource, type of project improves the District’s water supply and/or improves the reliability of providing water service.
WR 26 – An imported water connection located at north of Via Gorrion and west of Ridgeline Court through which RCWD purchases treated domestic water from WMWD delivered from the MWD aqueducts passing through the District.
WR 28 – An imported water connection located at north of Via Gorrion and west of Ridgeline Court through which RCWD purchases treated domestic water from WMWD delivered from the MWD aqueducts passing through the District.
WSIP – Water Savings Incentive Program
262 Rancho California Water District GLOSSARY
Glossary of Terms Budget Process – The schedule of key dates or milestones, which the District follows in Accrual Basis – The method of accounting the development, preparation, adoption, and whereby income and expense items are administration of the budget. recognized as they are earned or incurred, even though they may not have been received Budgetary – Management of a government or actually paid in cash. or enterprise in accordance with an approved budget to keep expenditures within the Ad Valorem Tax – A tax based on the value limitations of available appropriations and of the item rather than on its weight or available revenues. quantity (e.g., an ad valorem property tax is Capital Projects – Projects budgeted within based on the assessed land value of property the Capital Budget fall within the definition of rather than its size). Capital Expenditures, which mean (1) they
Annexation – Properties that are outside the create or extend the lives of assets, (2) their (current District) boundaries that desire work products have a useful life of greater service from RCWD must apply for than two years, and (3) they involve an annexation. expenditure of District resources in excess of $2,000.
Aquifer - A layer of permeable rock, sand, or Capital Improvement Plan (CIP) – gravel through which ground water flows, Authorized expenditures for tangible and containing enough water to supply wells and long-term physical improvements or additions springs. of a fixed or permanent nature. Asset – A probable future economic benefit obtained or controlled by a particular entity as Capital Outlay– Individual item purchases of a result of past transactions or events (i.e., furniture, fixtures, machinery, vehicles, and cash, receivables, equipment, and the like). equipment with an individual cost of at least $1,000 and having a useful life of two years or more. Beginning Balance – The beginning balance is comprised of residual funds brought Certificates of Participation (COPs) – A forward from the previous fiscal year (ending security in the form of a bond, which balance). evidences a proportionate participation in a
Bonded Indebtedness – The District’s flow of lease or other payments between two parties. general name for bond debt evidencing amounts owed and payable on specific dates Comprehensive Annual Financial Report or on demand. (CAFR) – A widely recognized comprehensive Budget – A financial plan showing annual financial reporting medium summarizing authorized planned expenditures and their financial and statistical data in a standardized funding sources. format, used by municipal issuers.
Budget-Based Tiered Water Rate Critical Success Factors – Key objectives (BBTWR) – Increasing rate block structure that must be obtained for overall success to in which the block definition is different for be achieved. each customer and is based on an efficient level of water use by that customer.
263 Rancho California Water District GLOSSARY
Glossary of Terms Cont. Fiscal Year (FY) – A 12-month period to which the annual operating budget applies and Depreciation – A portion of the cost of a at the end of which a government determines fixed asset, which is charged as an expense its financial position and the results of its during a year, representing an estimate of the operations (for RCWD the fiscal year is July 1 value of the asset used up during that year. through June 30).
Debt Service – The current year portion of Fixed Costs – Costs created by the need to interest costs and current year principal maintain a utility systems capacity to deliver payments incurred on long-term debt. water to all customers and represent the cost of service availability, which must be Division Mission Statement – The maintained for each customer in order to Division’s core purpose; how the Division preserve their share of reserved system supports the District’s mission. volume.
Energy Rate – The cost of energy generated Fund – A self-balancing set of accounts in by the pumping of water to various pump which cash and other financial resources, all zones is recovered via an energy surcharge per related liabilities and residual equities, or hcf. balances and changes therein, are recorded and segregated to carry on specific activities Enterprise Fund – A fund established to or attain certain objectives in accordance with account for operations that are financed and special regulations, restrictions or limitations. operated in a manner similar to private business enterprises where the intent of the Fund Balance – The current funds on hand governing body is that the costs of providing resulting from historical collection and use of goods or services to the general public on a monies. The difference between assets and continuing basis be financed or recovered liabilities plus residual equities or balances or primarily through “user charges.” changes therein, from the results of operations. Effective Utility Management (EUM) – Management that improves products and GASB 68– The primary objective of this services, increase community support, and Statement is to improve accounting and ensures a strong and viable utility into the financial reporting by state and local future. governments for pensions. It also improves information provided by state and local Expense – Decreases in net financial governmental employers about financial resources resulting from payment for support for pensions that is provided by other operating costs, labor and overhead, services entities. This Statement results from a and supplies, land and structures, equipment, comprehensive review of the effectiveness of debt service, etc. existing standards of accounting and financial reporting for pensions with regard to Fee for Service Costs – Cost of providing providing decision-useful information, special services to customers and the related supporting assessments of accountability and fee to cover those costs. interperiod equity, and creating additional Fire Service Charge – A monthly charge transparency. assessed commercial and/or industrial properties to cover the cost of the District General Fund – A fund used to account for providing additional fire flow capacity. major operating revenues and expenditures, except for those financial transactions that are
264 Rancho California Water District GLOSSARY
Glossary of Terms Cont. Mission Statement – The District’s core purpose required to be accounted for in another fund. Non-Operating Budget – Budgeted income General Fund revenues are derived primarily and expenses derived from non-operating from property and other taxes. type categories, such as interest income and
Geographical Information Systems (GIS) expenses, assessments, connection fees and depreciation. – An information system integrating maps with electronic data. Non-Operating Costs – Costs incurred through activities other than regular business Groundwater – Water produced by pumping operating activities, such as source of supply, from an underground aquifer. transmission and distribution, customer
service, etc... Hansen – Information System Software
Import Water – Purchased water Operating Budget – The normal ongoing operating costs incurred to operate the Lock Off – A final notice to a customer if District, including wages, materials, utilities, their billing account remains unpaid for 45 professional and outside services, and other days. Must be paid within 48 hours to avoid such operating expenses. having water service terminated. Operating Costs – All costs necessary to
Long-Range Capital Financing Plan – A operate and maintain the water and wastewater operations. plan that details future capital requirements for the District’s service area and identifies Operating Reserve Fund – A fund category funding sources to meet future debt designated for specific operating purposes. obligations. Performance Measurement – A method of Major Capital Projects – Projects that are determining the success rate of a specific task potable water, recycled, and wastewater or job requirement within identified guidelines infrastructure related projects that require a of the District’s goals and objectives. longer time to build and to complete, have a longer estimated life and have cost well Performance Measurement Indicators – A exceeding $35,000.00. Capital facilities include measurable achievement or accomplishment used to determine specific tasks or goals. reservoirs, pipelines, wells, transmission mains, pump stations, and wastewater Plan Check – Process District reviews and facilities. All capital facilities are funded by approved drawings for improvements to the bond funds or non-operating cash reserves of water/sewer system to ensure conformation the District. of design materials with the standard drawings. Minor Capital Projects – Projects that cost $35,000 or less and restore an asset to its Public Employees Retirement System – original condition or extends the useful life An agent, multiple employer, public and/or functionality of an asset. These retirement system to which the District projects are funded by non-operating revenue. contributes that acts as a common investment
Monthly Capacity Rate – The charge to and administrative agent for participating public entities within the State of California. offset the “ready to serve” cost incurred by the District regardless of the volume of water Potable Water – Water that is suitable for sold. drinking.
265 Rancho California Water District GLOSSARY
Proposition 50 – Prop 50 allows for 3.4 Standby Charge – A “ready-to-serve” charge billion dollars in general obligation bonds to levied annually in two equal installments fund a variety of water projects. against property within District boundaries based on the proximity of existing water Proposition 84 – On November 7, 2006, facilities, with decreases in the charges as the voters passed Proposition 84 by 53.9 percent. distance from existing water service increases. The 5.4 billion dollar “Safe Drinking Water, Standby charges collected by the District are Water Quality and Supply, Flood Control, used exclusively for the purpose of paying River and Coastal Protection Bond Act of bonded indebtedness. 2006” (Safe Drinking Water Bond) is detailed in Sections 75001 through 75090 of the Public Stewardship – The responsible management Resources Code. and responsibility to properly utilize District
Proposition 218 – Prop 218 amended the resources, including people, property, and financial and natural assets. California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, Strategic Plan the long-term goals, requires the local government to have a vote objectives, and performance measurement of the affected property owners for any standards for the District. proposed new or increased assessment before it could be levied. The Proposition was passed Sustainability – The use of natural, by California voters on November 5, 1996, community, and utility resources in a manner and the assessments portion placed in effect that satisfies current needs without on July 1, 1997. compromising future needs or options.
Recycled Water – Water that has been Targeted Operating Reserve – A desired treated to remove harmful contaminants that level of operating reserves for various can be used for non-potable purposes, such as purposes such as rate stabilization, drought, risk management, and working capital. landscape and golf course irrigation.
Reserve – A portion of fund balance that is Tertiary – The purification of wastewater by held for a specific future use. removal of fine particles, nitrates and phosphates. Santa Rosa Regional Resources Authority Tier 2 Conservation Rate - Designed to – A newly formed Joint Powers Authority charge customers using substantially more formed by Elsinore Valley Municipal Water water than other customers in their customer District (Elsinore), Rancho California Water class, an add-on rate to recover Tier 2 charges District (Rancho), and Western Municipal from MWD and to fund targeted water Water District (Western) to perform all conservation programs. functions for the treatment and disposal of wastewater from its member agencies, Topographical Map - A large-scale map including the acquisition, construction and showing relief and man-made features of a financing for capital projects. portion of a land surface distinguished by portrayal of position, relation, size, shape, and Standard Specifications – Written elevation of the features. description of design and material standard Unlock – The process of restoring service drawings for water/sewer pipeline, (removing the lock from the meter) once appurtenances, and installation. delinquent charges have been settled.
266 Rancho California Water District GLOSSARY
Glossary of Terms Cont. Water Capacity Fee – The amount charged User Charge System – The total process of for the purchase of capacity in the RCWD (1) identifying water and wastewater costs; (2) sewage treatment and collection system. The allocating costs to utility or service fee is based on the total EDUs. beneficiaries; and (3) designing rate structures Will Serve Letter – A conditional to recover allocated costs. commitment by the District to provide water,
Vail Lake – Surface water capture-release sewer service, or fire flow. Subject to the facility in the hydro-geologic area of the completion of all financial arrangements and District. conditions of service.
Variable Costs – Costs created during the Zone of Benefit – An acreage charge in the actual production, distribution, and delivery of Santa Rosa Division for installation by water services and represent the costs per unit RCWD of the secondary water system to all of water measured in hundred cubic feet or 20-acre parcels. “hcf.”
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