Yorba Linda Water District directors review long-range asset management plan for infrastructure

An asset management plan that reaches as far as 100 years into the future and will act as a guide in planning for infrastructure improvements and funding alternatives was reviewed at a recent meeting of the five elected directors of the Yorba Linda Water District.

The 203-page document will play an important role as officials map plans for the future of the district that supplies water for most of Yorba Linda and parts of Placentia, Brea and Anaheim. It was prepared by Walnut Creek-based Carollo Engineers at a cost of $131,875.

Among the report's key findings and recommendations:

--A 10-year forecast for infrastructure improvements through a capital improvement program estimates $56 million in costs for 30 projects. A 100-year forecast put the total at $1.3 billion, or about $12.9 million per year.

--An appraisal of the district's 350 miles of water pipelines and 265 miles of sewer pipelines using a computer model identified 19 miles that need replacement over the next five years. Five miles pose a “high risk” and 30 miles and 28 support assets are at “medium-high” risk.

--A visual assessment of assets at 40 district facilities found “the vast majority” in “good to fair” condition. Less than 1 percent of assets were observed to be in “poor” condition.

--And most important, “A financial review found that the district's forecasted cash flow is not sufficient to cover all of the system depreciation costs, let alone the asset rehabilitation and replacement costs” that were predicted in the management plan.

“While existing unrestricted reserves are sufficient to cover this deficit for the next 10 years, the deficit increases significantly after year 10 and further reserves would be unavailable to cover the deficit,” the report forecast.

--A key recommendation: consider using existing capital replacement reserves “and take the short-term opportunity to best determine an appropriate road map for rate increases to mitigate the impacts on ratepayers” and “the district's current and desired rating from bond rating agencies.”

Since the anticipated funding needs “are outside the first 10 years, it also enables the district to continue monitoring and adjusting the forecast for future (repair and replacement) needs.”

Importantly, Carollo researchers declared that an asset management plan is “a snapshot” of district assets, which the report noted had a replacement cost of $1.07 billion in 2018 dollars.

The report stated: “Over time the assets change and so does the information about them. As asset data improves and computer system technology advances, so does the ability to improve...analyses.”

An added note: The district will host an open house 9 a.m. to 3 p.m. May 19, with a behind-the-scenes look at water delivery, featuring an infrastructure and headquarters tour, landscape workshop, prizes and refreshments at 1717 E. Miraloma Ave., Placentia.