schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water; and

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RESOLUTION NO. 15-22 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING WATER RATES EFFECTIVE OCTOBER 1, 2015 AND RESCINDING RESOLUTION NO. 14-07 WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the Yorba Linda Water District ( YLWD) is required to set water rates at a level which will pay for the provision of water services; and WHEREAS, pursuant to Government Code Section 53756, YLWD may adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water; and WHEREAS, the Board of Directors previously adopted Resolution No. 14-07, which established water rates effective July 1, 2014; and WHEREAS, on July 16, 2015 the Board of Directors considered the 2015 Water and Sewer Rate Study, and on August 31, 2015 the 2015 Water and Sewer Rate Study Report; and WHEREAS, the Board of Directors determined that the water rate increases described in the 2015 Water and Sewer Rate Study Report are necessary and sufficient to cover, without exceeding, the cost to provide water service to each customer connection; and WHEREAS, pursuant to and in compliance with Proposition 218 ( California Constitution Art. XIII D), the District on July 31, 2015 mailed a notice of water rate increase to all property owners within the District' s service area which included the proposed rates for FY 2015/ 16, FY 2016/ 17, FY 2017/ 18, FY 2018/ 19, and FY 2019/ 20, and the Board of Directors has received a proof of mailing; and WHEREAS, pursuant to Proposition 218 on September 17, 2015 the Board of Directors held a hearing regarding water rates and pass- through charges for FY 2015/ 16, FY 2016/ 17, FY 2017/ 18, FY 2018/ 19, and FY 2019/ 20 and heard and considered protests; and WHEREAS, the Board of Directors desires to establish water rates for the remainder of FY 2015/ 16. Resolution No. 15-22 Setting Water Rates Effective October 1. 2015 and Rescinding Resolution No. 14-07 1

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba Linda Water District does hereby find, determine, and resolve the following: Section 1. Resolution No. 14-07 is hereby rescinded. Section 2. Written protests against the proposed rates and charges were not presented by a majority of owners as set forth in California Constitution Art. XIII D Section 6( a)( 2). Section 3. The Board of Directors has reviewed the entire record for this matter, which includes the 2015 Water and Sewer Rate Study Report and the analysis of expenses and revenues set forth therein. Based upon the Board of Directors' review, it finds and determines that the record supports the Board of Directors' findings that: A. As set forth in the 2015 Water and Sewer Rate Study Report, revenues derived from the rates and charges will not exceed the revenues required to provide the property related service; and B. As set forth in the 2015 Water and Sewer Rate Study Report, revenues derived from the rates and charges will not be used for any purpose other than that for which the rates or charges are imposed; and C. As set forth in the 2015 Water and Sewer Rate Study Report, the amount of a rate or charge imposed upon any parcel or person as an incident of property ownership does not exceed the proportional cost of the service attributable to the parcel. Section 4. The Board of Directors hereby determines that no rate or charge will be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Resolution No. 15-22 Setting Water Rates Effective October 1, 2015 and Rescinding Resolution No. 14-07 2

Section 5. The Board of Directors hereby determines that no rate or charge will be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Section 6. Water rates and customer connection charges for service defined in Section 3. 4 of the Rules and Regulations With Regard to the Rendition of Water Service of the Yorba Linda Water District are hereby set forth as follows and will take effect on customer billings with the " Bill Date" on or after October 1, 2015: For All Potable Water Service: All Water Usage shall be charged at 2. 70 / 100 Cu. Ft. Does Not Include Pass- through Charge) Monthly Service Charge for: 5/ 8" and 3/ 4" Meters 26. 29 1" Meters 41. 57 1 1/ 2" Meters 79. 77 2" Meters 125. 61 3" Meters 270. 77 4" Meters 484. 69 6" Meters 1, 225. 77 8" Meters 2, 142. 57 10" Meters 3, 212. 17 Section 7. Additional rates and fees for service are as follows: A. The charge for Permanent Untreated Water Service as defined in Section 3. 4. 3 of the Rules and Regulations for Water Service shall be as follows: The current Metropolitan Water District of Southern California MWD) Untreated Full rate, plus charges by the Municipal Water District of Orange County ( MWDOC), plus any other fees, charges or penalties as may be imposed by MWD and/ or MWDOC, plus $ 13 per acre foot. Resolution No. 15-22 Setting Water Rates Effective October 1, 2015 and Rescinding Resolution No. 14-07 3

B. The charge for Temporary Service as defined in Section 3. 5. 1 of the Rules and Regulations for Water Service shall be as follows: The rate per hundred cubic feet shall be two times the rate specified for all water service plus $ 2. 50 per day for each day that the meter is available for use by the customer. A security deposit of $ 1, 000 is required at the time of rental and the deposit will be returned within 15 days of the return of the meter. C. The charge for Private Fire Service as defined in Section 3. 6 of the Rules and Regulations for Water Service shall be as follows: Meter Size 4" 16. 00 6" 35. 00 8" 59. 00 10" 94. 00 Monthly Charge PASSED AND ADOPTED this 17th day of September 2015, by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Directors Beverage, Collett, Hawkins, Kiley and Melton e Ric Collett, President Yorba Linda Water District ATTEST: aor'. Tr a a Marc Marcantonio, Board Secretary vv, i } t Yorba Linda Water District Resolution No. 15-22 Setting Water Rates Effective October 1, 2015 and Rescinding Resolution No. 14-07 4

Reviewed as to form by General Counsel: Arthur G. Kidman, Esq. Kidman Law LLP Resolution No. 15-22 Setting Water Rates Effective October 1, 2015 and Rescinding Resolution No. 14-07 5