The URL can be used to link to this page

Home My WebLink About2025-10-23 WCWD PacketPage 1 of 2 Willow County Water District Special Meeting AGENDA (to be held both at the physical and virtual locations below) 151 Laws Avenue ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/84512727220 Alternatively, you may view the meeting (without participating) by clicking on the date and name of the meeting at www.cityofukiah.com/meetings, then go to the media tab. October 23, 2025 - 6:30 PM 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES 2.a. Approval of the Minutes for the September 8, 2025, WCWD Regular Meeting. Recommended Action: Approve the Minutes of September 8, 2025 Attachments: 1. 2025-10-23 WCWD Draft Minutes 3. NEW BUSINESS 3.a. Consideration/Approval of Rate Study — Presentation by Mark Hildebrand Recommended Action: Accept Rate Study as Presented Attachments: 1. Willow 2025 Water Financial Plan 10.16.25 3.b. Consideration/Approval of 2024-2025 Willow Audit Recommended Action: Approve the 2024-2025 Willow Audit Attachments: 1. 2024-2025 Willow Audit 3.c. Consideration/Approval of Proposal of Terms by City of Ukiah for Purchase of Certain District Capital Assets Attachments: 1. Term Sheet Willow Office Building 10-17-25 2. Term Sheet Willow Vehicles and Equipment 10-17-25 4. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The Ukiah Valley Water Authority (UVWA) - Willow County Water District members welcome input from the audience. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments on non-agenda items. If you wish to submit written comments, please provide information to the UVWA-Willow, located at 151 Laws Avenue, Ukiah, CA, 95482. 5. UNFINISHED BUSINESS Page 1 of 55 Page 2 of 2 5.a. Report on Eel-Russian Project Authority (ERPA) 5.b. Report on Water Districts’ Projects 5.c. Report on Ukiah Valley Water Authority (UVWA) 6. ADMINISTRATIVE AND OPERATIONAL REPORTS 7. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS 8. SET NEXT MEETING DATE 8.a. Discussion and Consideration of Scheduling of Next Meeting Date with Meeting to be Held at the Water District Conference Room, 151 Laws Avenue, Ukiah, CA 95482, at 6:30 p.m. Recommended Action: Discuss and get consensus to hold the next regular meeting on November 10, 2025, or another day of the Members' choosing. 9. ADJOURNMENT Please be advised that the Ukiah Valley Water Authority (UVWA)-Willow County Water District (WCWD) needs to be notified 24 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. UVWA-WCWD complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the UVWA-WCWD Board Members after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 48 hours in advance of the meeting; for handouts, please include 10 copies. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California; and at 151 Laws Avenue, Ukiah, California; not less than 24 hours prior to the meeting set forth on this agenda. Kristine Lawler, CMC/CPMC Dated: 10/17/25 Page 2 of 55 Page 3 of 55 AGENDA ITEM 2a Page 1 of 2 MINUTES WILLOW COUNTY WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING September 8, 2025 Present: Gary Nevill, Director Director Ross LaRue Director Devin Gordon Absent: Director Mike Hildreth Others Present: Jared Walker - Deputy Director of Water Resources & GM; Kim Saylor - Deputy Clerk; Dan Buffalo, City of Ukiah Finance Manager. CALL TO ORDER: The Willow County Water District held a Regular Meeting on September 8, 2025 the meeting was legally noticed on September 4, 2025. The meeting was held in person and via zoom. Chair G. Nevill called the meeting to order at 6:34 p.m. CHAIR G. NEVILL PRESIDING. ROLL CALL: Roll was taken with the following Directors Present: D. Gordon, R. LaRue and Chair G. Nevill. Directors Absent: M. Hildreth. Staff Present: Jared Walker, Deputy Director of Water Resources, and Kim Saylor, Deputy Clerk. APPROVAL OF MINUTES: a.Approval of the Minutes of 2025-06-09 Willow Water Minutes. Motion/Second: Gordon / LaRue to approve the Minutes of May 12, 2025, a Regular Meeting as submitted. Motion carried by the following Roll Call votes: AYES: D. Gordon, R. LaRue and Chair, G. Nevill. NOES: None. ABSENT: M. Hildreth. ABSTAIN: None. AUDIENCE COMMENTS ON NON-AGENDA ITEMS: None. ADMINISTRATIVE AND OPERATIONAL REPORTS GENERAL MANANGEMENT REPORT: a.GM Walker reported that all his updates can be covered under unfinished business. OFFICE MANAGEMENT REPORT: a.OM Patton reported via GM Walker that the Auditor is finishing up the Audit and may reach out to see if any board members wish to sit down and discuss the Audit or ask questions. UNFINISHED BUSINESS a.Report on Eel-Russian Project Authority — (ERPA) No new updates. b.Report on Water Districts’ Projects: i. Canyon Drive Water Main Replacement job should be at the top of Canyon Drive, a hydrant needs to be installed, as well as the tie in and transition into Pomo Lane. ii. RVCWD well project on Masonite: Wipf was awarded the well-to-water main project. iii. HPUD is in the middle of their Rate Study. DR A F T Page 4 of 55 Willow County Water District (WCWD) Minutes, Continued: c. Report on Ukiah Valley Water Authority (UVWA) GM, Walker reported that the September meeting was cancelled, the next meeting is scheduled for October 2, 2025. The grant application should be submitted by the end of September. NEW BUSINESS a. Consideration of Rental Agreement Term Sheet for 151 Laws Ave Willow Water District Office with City of Ukiah. b. Consideration of Selling Willow Fleet and Equipment to the City of Ukiah. Information received, Direction to Staff was given. Bring it back to the next meeting. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS None. SET NEXT MEETING DATE: October 13, 2025 Presenter: Kim Saylor, Deputy Clerk ADJOURNMENT There being no further business, the meeting adjourned at 7:49 p.m. __________________________________ Date_________________ PRESIDENT OF THE BOARD OF DIRECTORS WILLOW COUNTY WATER DISTRICT ATTEST___________________________ Date_________________ Kim Saylor – Deputy Clerk DR A F T Page 5 of 55 Willow County Water District 2025 Water Utility Financial Plan Recommendations October 23, 2025 AGENDA ITEM 3a - ATTACHMENT 1 Page 6 of 55 2 Agenda 1. Ukiah Valley Water Authority 2. Rate Setting Process 3. Willow Financial Plan 4. Proposed Rates 5. Project Schedule Page 7 of 55 3 Ukiah Valley Water Authority Joint Powers Authority (JPA) between 5 water utilities: -City of Ukiah -Calpella County Water District -Millview County Water District -Redwood Valley County Water District -Willow County Water District The City provides each member agency with operating and administrative services through a Joint Services Agreement (JSA). For now, each utility will maintain a separate accounting of finances and reserves. Calpella did not participate in the current rate study since a study was completed in 2024. Page 8 of 55 The Rate Setting Process Compares the revenues of the utility to its expenses to determine the overall level of rate adjustment Equitably allocates the revenue requirements between the various customer classes of service Design rates for each class of service to meet the revenue needs of the utility, along with any other rate design goals and objectives Revenue Requirements Cost-of-Service Rate Design 4 Page 9 of 55 5 Legal Requirements for Setting Water Rates In California Proposition 218 (Article XIIID, Section 6 of California Constitution) •Revenues shall not exceed funds required to provide service; nor used for another purpose •Amount shall not exceed the proportional cost of the service attributable to the parcel •Service must be actually used or immediately available •Approval process includes 45-day notice, public hearing, and written majority protest. Does not require a voting process (unlike taxes). Page 10 of 55 6 Willow County Water District Proposed Reserve Policies In addition to protecting the District against unforeseen circumstances, these policies also contribute towards the District’s credit rating. Proposed Operating Reserve policy to maintain cash reserves of at least 25 percent of operating expenses (currently equal to about $275 thousand). Recommend a Capital Reserve policy based on the current condition and vulnerabilities of the system. This reserve will help the District absorb any spikes in capital spending or unforeseen infrastructure failure. District staff recommends a reserve target of $800 thousand (consistent with 2021 rate study). The District’s reserves as of July 2024 were about $1.2 million. Page 11 of 55 Willow County Water District Revenue FY2025/26 Budget 7 Rate Revenue $777,000 Non-Rate Revenue Miscellaneous Revenue $15,000 Interest Earnings $8,700 Connection Fees $5,000 Total: $805,700 Page 12 of 55 8 Allocation of Costs among Member Agencies Example ExpensesAllocation MethodExpense Type Water utility salaries, general operations Primarily relative water usage*Shared operating costs Chemicals, electricity, treatment costDirectSpecific operating costs Billing, administration, purchasing, rentCost Allocation PlanCity support services Repairs of wells, pipes treatment plant, etc.DirectCapital City and Millview onlyDirectDebt * Sometimes number of accounts Page 13 of 55 9 Shared Asset Expenses •Most assets are owned independently by each respective member agency •Some assets will be shared by the member agencies •Vehicles •Buildings •Other? •For example, Willow currently owns a fleet of vehicles and a building, which will be sold to the City of Ukiah for shared use among all the member agencies •It is proposed that these shared asset costs be shared among the member agencies based on annualized depreciation expense for each asset. Page 14 of 55 Willow County Water District Operating and Debt Expenses FY2025/26 Budget 10 Interagency Services * 57.0% Professional Services 4.5% Miscellaneous 5.3% Supplies and Chemicals 4.3% Utilities 20.9% Insurance 2.9% City Support Services 5.1% Interagency Services *$630,000 Professional Services $50,000 Miscellaneous $59,000 Supplies and Chemicals $47,000 Utilities $231,000 Insurance $32,000 City Support Services $56,000 Total:$1,105,000 * For shared personnel and operations costs based on updated allocation. Page 15 of 55 11 Annual Inflation Assumptions Salaries and Benefits……………………………. 5% per year Insurance……………………………………………. 7% per year Utilities, fuel and chemicals……………….. 4% per year All other……………………………………………… 3% per year Page 16 of 55 12 Willow County Water District Capital Spending Proposed Average Annual Spending = $226 thousand $0 $50 $100 $150 $200 $250 $300 $350 Th o u s a n d s Budgeted Spending Actual Spending Page 17 of 55 Willow County Water District Financial Forecast & Rate Revenue Increases With proposed capital spending ($226 per year) 13 Non Rate Revenue Operating Expenses Existing Rate Revenue Cash Capital Additional Rate Revenue Page 18 of 55 14 Non Rate Revenue Operating Expenses Existing Rate Revenue Cash Capital Additional Rate Revenue Willow County Water District Financial Forecast & Rate Revenue Increases With minimal capital spending ($122 per year) Page 19 of 55 15 Willow County Water District Current & Proposed Water Rates Current 1 March 1, 2026* July 2026 July 2027 July 2028 July 2029 Rate Revenue Increase: 20% 20% 12% 12% 5% Water Usage Rates (per TGAL) Residential Zone 1 $2.25 $2.70 $3.24 $3.63 $4.07 $4.27 Commercial $2.25 $2.70 $3.24 $3.63 $4.07 $4.27 Residential Zone 2 $3.22 $3.86 $4.63 $5.19 $5.81 $6.10 Residential Zone 3 $3.89 $4.67 $5.60 $6.27 $7.02 $7.37 Residential Zone 4 $4.36 $5.23 $6.28 $7.03 $7.87 $8.26 Irrigation $2.25 $2.70 $3.24 $3.63 $4.07 $4.27 Fixed Monthly Base Charges 3/4"$23.60 $28.32 $33.98 $38.06 $42.63 $44.76 1"$38.04 $45.65 $54.78 $61.35 $68.71 $72.15 1.5"$74.14 $88.97 $106.76 $119.57 $133.92 $140.62 2" $117.46 $140.95 $169.14 $189.44 $212.17 $222.78 3"$218.54 $262.25 $314.70 $352.46 $394.76 $414.50 4"$362.93 $435.52 $522.62 $585.33 $655.57 $688.35 * This rate increase is proposed to replace the 5% increase that was otherwise scheduled for December 2025 Page 20 of 55 16 Summary of Proposed Water Rate Increases for UVWA member agencies March 1, 2026 July 2026 July 2027 July 2028 July 2029 City of Ukiah 3.0% 3.0% 4.0% 4.0% 4.0% Millview 6.0% 6.0% 6.0% 5.0% 5.0% Redwood Valley 30.0% 12.0% 6.0% 3.0% 3.0% Willow 20.0% 20.0% 12.0% 12.0% 5.0% Calpella *NA** 14.0% 12.0% 10.0% (TBD) * Previously adopted ** A 14% increase was implemented in July 2025 Page 21 of 55 17 Proposed Year 1 Monthly water bill comparisons among selected regional water agencies Single Family Homes with ¾” meter using 10,000 gallons per month Page 22 of 55 18 Proposed Year 5 Monthly water bill comparisons among selected regional water agencies Single Family Homes with ¾” meter using 10,000 gallons per month * * Year 4 rate because Year 5 rate is TBD Page 23 of 55 19 Project Schedule Oct. 15 – Oct. 23 Present findings to all member agencies November 6 Present recommendations to UVWA Executive Committee •Request approval to mail the 218 notices •Propose adoption of 2257 procedures (If either of the above don’t happen and second meeting is necessary, we will need to target a second Executive Committee meeting by late November) Mid-November Mail the 218 notices Early January, 2026 Deadline for 2257 objections Early February Public Hearing March 1 First rate increase Page 24 of 55 Page 25 of 55 Page 26 of 55 Page 27 of 55 Page 28 of 55 Page 29 of 55 Page 30 of 55 Page 31 of 55 Page 32 of 55 Page 33 of 55 Page 34 of 55 Page 35 of 55 Page 36 of 55 Page 37 of 55 Page 38 of 55 Page 39 of 55 Page 40 of 55 Page 41 of 55 Page 42 of 55 Page 43 of 55 Page 44 of 55 Page 45 of 55 Page 46 of 55 Page 47 of 55 Page 48 of 55 Term Sheet: Lease-Purchase of Willow Office Building 151 Laws Avenue, Ukiah, California This term sheet sets forth the principal business terms under which the Buyer (Tenant) and Seller (Landlord) would structure a lease-purchase arrangement for the Willow Office Building. It is non-binding (except for those provisions explicitly stated to be binding). 1. Parties •Landlord / Seller: Willow (or its designated entity) •Tenant / Buyer: [Insert Tenant Name/Entity] 2. Property •The entire building known as the Willow Office Building, located at 151 Laws Avenue, Ukiah, California (the "Property"). 3. Lease-Purchase Structure •Lease Term: Five (5) years. •Principal Amount: $499,999, subject to appraisal before start of lease term. An appraised value less than $499,999 will be the purchase price and the basis for the portion of principal lease payments. •Interest Rate: 4.0% per annum, fixed. Current commercial real estate loan rates in the Ukiah area generally range between 4% and 6.5%, depending on credit quality and collateral. •Payment Structure: Monthly lease payments shall be structured to mirror a fully amortizing loan with both principal and interest components. o The principal balance shall be reduced over the five-year term, such that the total principal paid equals $499,999 by the end of the fifth year. o A detailed amortization schedule will be attached as an exhibit to the final agreement, specifying the breakdown of principal and interest for each month. AGENDA ITEM 3c - ATTACHMENT 1 Page 49 of 55 • Payment Timing: Payments are due on the first (1st) day of each month. 4. Bargain Purchase Option • Option to Purchase: At the end of the five-year term, Tenant shall have the option to acquire title to the Property for $1.00 (one dollar). • Early Purchase Option: The City may terminate the lease at any time during the five-year term and elect to purchase the Property for $500,000 or another mutually agreed price, based on an appraisal conducted prior to the commencement of the lease agreement. The appraisal shall establish the baseline purchase price for the Property. If the appraised value is lower than $500,000, the purchase price shall be that appraised amount, less the total principal portion of lease payments already made. • Exercise of Option: Tenant shall provide written notice to exercise the purchase option no later than ninety (90) days prior to the end of the lease term, or upon early termination if exercising the early purchase option. • Closing: Closing shall occur within sixty (60) days of exercising the option. Upon payment of the applicable purchase price (or final $1.00 if at term) and satisfaction of all lease-purchase obligations, title shall transfer to Tenant. 5. Maintenance & Repairs • City (Tenant): Responsible for all maintenance, repairs, and improvements to the Property during the lease term. The City reserves the right to make capital improvements at its discretion. • Landlord: Shall have no maintenance or repair responsibilities during the lease term. 6. Insurance, Taxes & Operating Costs • Tenant shall maintain general liability insurance naming Landlord as an additional insured. • Landlord shall maintain property insurance for the building until title transfers. • Tenant shall pay utilities and routine operating costs. Page 50 of 55 7. Miscellaneous Provisions • Governing Law: California law governs. • Binding Provisions: This term sheet is non-binding except for (i) confidentiality, (ii) exclusivity (if agreed), and (iii) any expressly binding fee or reimbursement terms. • Costs & Fees: Each party pays its own legal, appraisal, due diligence, and closing costs, unless otherwise agreed. • Escrow / Closing Agent: To be mutually selected. • Survival: Post-closing obligations (e.g., warranties or indemnities) to survive for a defined period. For Discussion Purposes Only Landlord/Seller: ___________________________ Date: ___________ Tenant/Buyer: ___________________________ Date: ___________ Page 51 of 55 TERM SHEET Proposed Purchase or Lease-Purchase of Willow Capital Assets Parties Buyer/Lessee: City of Ukiah ("City") Seller/Lessor: Willow County Water District ("District") 1. Purpose This Term Sheet outlines the principal terms and conditions for the City’s acquisition of certain capital assets currently owned by the District (collectively, the “Equipment”). The acquisition may occur through either (a) an outright cash purchase, or (b) a five-year lease- purchase agreement with a bargain purchase option, as described below. 2.Equipment The Equipment subject to this transaction consists of the capital assets listed in Exhibit A (attached), including but not limited to: •2018 Multiquip Whisperwatt DCA25SSIU4F Generator •2010 Airman PDS185S Compressor •1987 John Deere 310C Backhoe •2019 Kubota Z411 Mower •2019 Kubota L4701 Tractor with Attachments •2016 Ford F650 SD Dump Truck •2010 Ford Ranger Regular Cab Pickup •2005 Ford F250 Super Duty Super Cab Pickup •2013 Ford F150 Regular Cab Pickup •2016 Ford F150 Regular Cab Pickup •2019 Ford F150 Regular Cab Pickup (Unit 3301) •2020 Ford F150 Regular Cab Pickup (Unit 3304) •2019 Ford F150 Regular Cab Pickup (Unit 3305) AGENDA ITEM 3c - ATTACHMENT 2 Page 52 of 55 • 2016 Ford F150 Regular Cab Pickup (Unit 3306) • 2016 Ford F150 Regular Cab Pickup (Unit 3307) (Collectively, the “Equipment”) 3. Purchase Price • The total purchase price shall be based on the stated equipment values shown on the corresponding documentation attached as Exhibit A. • These stated values shall be accepted by both parties as the agreed fair market value for purposes of the sale or lease-purchase transaction. • The aggregate value of all listed equipment shall serve as the principal amount under any lease-purchase arrangement. 4. Payment Structure Option A — Cash Purchase: • The City shall pay the total agreed purchase price in full upon execution of the purchase agreement. Option B — Lease-Purchase: • Term: Five (5) years. • Interest Rate: Fixed at the market rate prevailing at the time of execution (currently estimated at approximately 3.5%, subject to adjustment to reflect current municipal lease market rates, typically ranging between 3.5% and 5.5%). • Lease Payments: Structured as an amortizing payment schedule with a portion applied to principal and a portion to interest. • Bargain Purchase Option: The City may purchase all Equipment at the conclusion of the 5-year term for $1.00. • Early Purchase Option: The City may at any time during the lease term purchase the Equipment for the remaining principal balance due as of the date of early payoff. 5. Maintenance, Operation, and Insurance Page 53 of 55 • The City shall be responsible for all maintenance, operation, registration, and insurance of the Equipment during the lease term. • The City shall have full right to use, operate, and maintain the Equipment for all municipal purposes. 6. Title and Risk of Loss • Title shall remain with the District during the lease term and shall transfer to the City upon final payment and exercise of the purchase option. • The City shall bear all risk of loss, theft, or damage during the lease period. 7. Improvements and Modifications The City may make capital improvements, repairs, or modifications to any Equipment in its discretion. Any such improvements shall become part of the Equipment and property of the City upon completion of the purchase. 8. Termination and Purchase Option The City may terminate the lease-purchase agreement at any time by purchasing the Equipment for the total stated value less all principal payments made to date. 9. Representations and Warranties All Equipment is sold or leased “as is,” “where is,” without warranty, express or implied, except as specifically set forth in the final purchase or lease-purchase agreement. 10. Conditions Precedent • Approval by the City Council of Ukiah and the District Board of Directors. • Execution of a definitive Purchase Agreement or Lease-Purchase Agreement consistent with this Term Sheet. Page 54 of 55 11. Exhibits Exhibit A: Willow Equipment List and Valuations (Pages 1–15) Acknowledged and Agreed: (non-binding, subject to formal approval) City of Ukiah By: ___________________________ Name: ________________________ Title: _________________________ Date: _________________________ Willow County Water District By: ___________________________ Name: ________________________ Title: _________________________ Date: _________________________ Page 55 of 55