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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 11/08/2011East Valley Water District 3694 HIGHLAND AVE., SUITE #30, HIGHLAND, CA BOARD MEETING November S, 201 1 3:00 P.M. *AMENDED AGENDA* --------------------------------------------------------------------- "In order to comply with legal requirements for posting of agenda, only those items filed with the District Secretary by 12:00 p.m. on Tuesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors ". --------------------------------------------------- ------------ - - - - -- CALL TO ORDER PLEDGE OF ALLEGIANCE PUBLIC COMMENTS - At this time, members of the public may address the Board of Directors on matters within its jurisdiction. To provide comments on specific agenda items, please complete a speaker's request form and provide the completed form to the Board Secretary prior to the board meeting. 1. Approval of Agenda 2. CONSENT CALENDAR -All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a. Board meeting minutes for October 25, 201 1 b. Financial Statements for the period ended August 31, 201 1 c. Directors fees and expenses for October 201 1 d. Accounts Payable Disbursements: Accounts Payable Checks #230367 through #230486 which were distributed during the period of October 19, 2011 through November 1, 2011 in the amount of $1,029,019.16. Payroll and benefit contributions for the period ended November 1, 201 1 and included checks and direct deposits, in the amount of $171,454.87. Total Disbursements for the period $1,200,474.03 NEW BUSINESS 3. Presentation by the Lewis Operating Corporation regarding the future Harmony Development Project REPORTS 4. General Manager /Staff Reports • 2011 Annual Legislative Report and Presentation by Bob Reeb (Reeb Government Relations, LLC) 5. Legal Counsel Report 6. Committee Reports • Legislative (Standing) • Community Affairs (Standing) • Labor Negotiating Committee (Ad -Hoc) • Succession Planning Committee (Ad -Hoc) 7. Oral comments from Board of Directors CLOSED SESSION 8. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(c) One (1) Potential Case 9. PUBLIC EMPLOYEE PERFORMANCE EVALUATION [Government Code Section 54957] Title: Interim General Manager 10. PUBLIC EMPLOYEE PERFORMANCE EVALUATION [Government Code Section 54957] Title: Robert Martin 1 1. PUBLIC EMPLOYEE APPOINTMENT [Government Code Section 54957] Title: General Manager 12. CONFERENCE WITH LABOR NEGOTIATOR [Government Code Section 54957.6(a)] District Negotiator: Labor Negotiating Conlinittee/ Interim General Manager Employee Organization: S.B.P.E.A. ANNOUNCEMENT OF CLOSED SESSION ACTIONS ►� �at�i�� :aci Pursuant to Government Code Section 54954.2(a), any request for a disability - related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above - agendized public meeting should be directed to the District's Administrative Manager at (909) 885 -4900 at least 72 hours prior to said meeting. ----------------------------------------------------------------------- - - - - -- 2 East Val ley Water District 3694 HIGHLAND AVE., SUITE #30, HIGHLAND, CA BOARD MEETING November 8, 2011 3:00 P.M. AGENDA --------------------------------------------------------------------- "In order to comply with legal requirements for posting of agenda, only those items filed with the District Secretary by 12:00 p.m. on Tuesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors ". --------------------------------------------------------------- - - - - -- CALL TO ORDER PLEDGE OF ALLEGIANCE PUBLIC COMMENTS - At this time, members of the public may address the Board of Directors on matters within its jurisdiction. To provide comments on specific agenda items, please complete a speaker's request form and provide the completed form to the Board Secretary prior to the board meeting. 1. Approval of Agenda 2. CONSENT CALENDAR -All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and /or removed from the Consent Calendar. a. Board meeting minutes for October 25, 201 1 b. Financial Statements for the period ended August 31, 201 1 c. Directors fees and expenses for October 201 1 d. Accounts Payable Disbursements: Accounts Payable Checks #230367 through #230486 which were distributed during the period of October 19, 2011 through November 1, 2011 in the amount of $1,029,019.16. Payroll and benefit contributions for the period ended November 1, 2011 and included checks and direct deposits, in the amount of $171,454.87. Total Disbursements for the period $1,200,474.03 NEW BUSINESS 3. Presentation by the Lewis Operating Corporation regarding the future Harmony Development Project REPORTS 4. General Manager /Staff Reports • 2011 Annual Legislative Report and Presentation by Bob Reeb (Reeb Government Relations, LLC) 5. Legal Counsel Report 6• Committee Reports • Legislative (Standing) • Community Affairs (Standing) • Labor Negotiating Committee (Ad -Hoc) • Succession Planning Committee (Ad -Hoc) 7. Oral comments from Board of Directors CLOSED SESSION 8. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(b) One (1) Potential Case 9. PUBLIC EMPLOYEE PERFORMANCE EVALUATION [Government Code Section 54957] Title: Interim General Manager 10. CONFERENCE WITH LABOR NEGOTIATOR [Government Code Section 54957.6(a)] District Negotiator: Labor Negotiating Committee/ Interim General Manager Employee Organization: S.B.P.E.A. ANNOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN Pursuant to Government Code Section 54954.2(a), any request for a disability - related modification or acconuizodation, including auxiliary aids or services, that is sought in order to participate in the above - agendized public meeting should be directed to the District's Administrative Manager at (909) 885 -4900 at least 72 hours prior to said meeting. -------------------------------------------------------- - - - - -- 2 Subject to annrovnl EAST VALLEY WATER DISTRICT October 25, 2011 REGULAR BOARD MEETING MINUTES The meeting was called to order at 3:00 p.m. by President Wilson. Director Malmberg led the flag salute. PRESENT: Directors: Levesque, Malmberg, Morales, Sturgeon, Wilson ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Ron Buchwald, District Engineer; Cecilia Contreras, Executive Assistant LEGAL COUNSEL: Steve Kennedy GUEST (S): Charles Roberts (Highland Community News), Ron Coats, Tom Dodson (Tom Dodson 8c Associates) PUBLIC PARTICIPATION President Wilson declared the public participation section of the meeting open at 3:00 p.m. There being no written or verbal comments, the public participation section was closed_ APPROVAL OF AGENDA M /S /C (Levesque- Morales) that the October 25, 2011 agenda be approved as submitted. APPROVAL OF BOARD MEETING MINUTES FOR SEPTEMBER 27, 2011 M /S /C (Levesque- Malmberg) that the Board meeting minutes for September 27, 201 1 be approved as submitted. APPROVAL OF BOARD MEETING MINUTES FOR OCTOBER 11, 2017 Director Morales stated that his name needed to be corrected on page four of the minutes. M /S /C (Levesque- Malmberg) that the Board meeting minutes for October 1 I, 201 1 be approved as amended (Minutes 10/25/11 cmc) 1 APPROVAL OF TTTE QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2011 M /S /C (Levesque - Malmberg) that the Quarterly Investment Report for the quarter ended September 30, 201 1 be approved as submitted. APPROVAL OF THE FINANCIAL S'T'ATEMENTS FOR THE PERIOD ENDED JULY 31, 2011 M /S /C (Levesque- Malmberg) that the Financial Statements for the period. ended July 31, 2011 be approved as submitted. DISBURSEMENTS M /S /C (Levesque- Malmberg) that General Fund Disbursements #230048 tlu-ough #230188 which were distributed during the period of September 20, 201 1 through October 4, 2011, in the amount of 1,004,390.68 and. payroll and benefit contributions for the period ended October 4, 201 1 and included checks and direct deposits, in the amount of $1 75,090.76 be approved. Total Disbursements for the period of $1,585,379.73 are approved. AWARD CONSTRUCTION CONTRACT FOR THE EASTWOOD FARMS WATER IMPROVEMENT PROJECT TO EL -CO CONTRACTORS, INC. The District Engineer gave a brief overview of the process for awarding a construction contract and the background for the Eastwood Farms project; that this is a huge milestone in this consolidation project; that W.J. McKeever Engineering did the review of the construction bids received. M /S /C (Levesque- Morales) that the construction contract for the Eastwood Farms Water Improvement Project be awarded to El -Co Contractors, Inc. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTION OF A MITIGATED NEGATIVE DECLARATION FOR EAST VALLEY WATER DISTRICT'S BASELINE GARDEN'S MUTUAL WATER COMPANY WATER SYSTEM IMPROVEMENT PROJECT PRESIDENT WILSON DECLARED THAT THE PUBLIC HEARING SECTION OF THE BOARD MEETING OPEN AT 3:07 P.M. The District Engineer provided an overview of the Water System Improvement Project; that "fom Dodson 8L Associates prepared the CEQA documents and the Initial Study for this project; that the Mitigated Negative Declaration Public Hearing was published as required and went through a 30 -day comment period. Mr. Dodson stated the main objective was to have this item completed in a timely manner in order to meet the required grant application deadlines; that federal requirements were also included in this study; that there were no substantive comments received; that his recommendation would be to adopt the Mitigated Negative Declaration_ (Minutes 10/25/11 cmc) 2 PRESIDENT WILSON DECLARED THAT THE PUBLIC HEARING SECTION OF THE BOARD MEETING BE CLOSED AT 3:09 P.M. APPROVE THE EAST VALLEY WATER DISTRICT'S BASELINE GARDENS MUTUAL WATER COMPANY WATER SYSTEM IMPROVEMENT PROJECT; ADOPT THE MITIGATED NEGATIVE DECLARATION; ADOPT THE MITIGATION AND MONITORING AND REPORTING PROGRAM; AND FILE THE NOTICE OF DETERMINATION WITH THE COUNTY OF SAN BERNARDINO CLERK OF THE BOARD OF SUPERVISORS AND THE STATE OFFICE OF PLANNING AND RESEARCH, STATE CLEARTNGHOUSE M /S /C (Morales -T eVesque) that the East Valley Water District's Baseline Gardens Mutual Water Company Water System Improvement Project; adopt the Mitigated Negative Declaration; adopt the Mitigation and Monitoring and Reporting program; and File the Notice of Determination with the County of San Bernardino Clerk of the Board of Supervisors and the State of Planning and Research, State Clearinghouse be approved. GENERAL MANAGER /STAFF REPORT No reports at this time. LEGAL COUNSEL REPORT Mr. Kennedy stated that he was happy to be here. COMMITTEE REPORTS a. Legislative Committee (Standing) — Director Morales stated that the committee will be scheduling a meeting in the near future. b. Community Affairs (Standing) — No reports at this time. c_ Labor Negotiation Committee (Ad -Hoc) — No reports at this time. d. Succession Planning Committee (Ad -Hoc) No reports at this time_ ORAL COMMENTS FROM BOARD OF DIRECTORS Director Malmberg stated that the Special Board meeting is next week and that they have a difficult decision to make. Director Morales stated that he attended the Discover Highland Night event on October 22nd and that Fast Valley Water District was well represented; that the distribution of water and the 1954 Chevy truck being there was great; and thank you to staff for being at the event and representing the District. The meeting was adjourned at 3:15 p.m. Robert DeLoach, Secretary George E. Wilson, President (Minutes 10/25/11 cmc) 3 East Valley Water District Staff Report Meeting Date: November 8, 201 1 TO: Board of Directors SUBJECT: August 201 1 Financial Statements SUMMARY: Issue — Public disclosure of ongoing financial condition operating results of the District Recommendation — Approve and file the attached financial report for the month ended August 31, 2011 Fiscal Impact — None Previous Related Action — None BACKGROUND Financial position and results of operations for the first two months of fiscal year 2011 -12 are presented in the accompanying financial statements. The delay in presentation of these July financial statements is the result of implementation of new accounting software modules which, when fully functional, will allow for completely separate fund reporting for water and sewer activities. DISCUSSION Balance Sheet Total Assets increased by $1,107,255 in August due to continued Plant 134 construction activity. In addition to payment to the construction contractor, a 20% payment of the membranes, of $566,656, was paid to the manufacturer. Restricted Assets increased with the monthly contribution to the 2010 Bond sinking fund (Debt Service Funds) and there were no District draws from restricted Construction Funds during August. An increase in current assets of $101,605 in August, was offset by an increase in current liabilities of $185,473, causing the District's Current Ratio to dip slightly from 2.17:1 to 2.11:1. At the same time liquidity was enhanced by the receipt of the second Reimbursement Request from the State Revolving Fund of $859 thousand, increasing the ratio of Unrestricted Cash to Current Liabilities from 1 19% to 138% coverage. SR# 0039 Revenue 8z Expenses Statement Operating Revenue Water sales in August were $7,194 over the budget. In volume, 971,608 HCF (726.8 MG) were billed in August, which is a 1.3% decrease from July. Compazed to recent historical consumption for the month of August, customer usage was down 558 HCF, or .06 %, compazed to one yeaz ago, and down 119,483 HCF or 10.9% compazed to August 2009. Other District operating revenues were $11,868 over budget in August, and Sewer Treatment revenue, which is passed through to the City of SB, was $2,136 over budget. Sales Volume by Month 1,200,000 - - 1, 000, 000 800,000 - / -- 2009-10 = 600,000 - 400,000 2010 -11 200,000 -- 2011 -12 (Oct -Jun est.) July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Operating Expenses Operating Expenses were $248,269 under budget for August. Of significance: • Source of Supply reflects a purchase of 1500 acre feet (AF) of recharge water at $75 per AF from SBVMWD • Pumping costs are $137,606 under budget through August. A continued decline in customer demand for water, even with hotter temperatures this yeaz compared to last August, has resulted in actual power costs less than budget. Also, Plant 28, which normally runs full time, was off line for a couple of days in August for disinfection and flushing. • Water Treatment costs remain significantly under budget, by $90,621 for August, $236,591 to date this fiscal year. This is due to the continued shutdown of plant 27 (fluoride). • Sewer Treatment costs in August were $579,914, $48,778 higher than the Sewer Treatment revenues due to a rate differential between treatment rates being paid, and rates being collected from customers. SR# 0039 Capital Projects There were no capital expenditures during August, though the order was placed for the new Vactor which should be delivered in December. There were $786,847 in costs incurred on CIP projects during August consisting primarily of construction at plant 134, and the engineering study for a Baseline Gardens assessment district. Respectfully Submitted, Apr ved by, Gv � •.. � Brian W. Ton ins Robert A. DeLoa h Chief Financial Officer interim General anager SR# 0039 East Valley Water District Balance Sheet - Unaudited August 31, 2011 ASSETS UTILITY PLANT - at cost: Utility Plant in Service -water department Utility Plant in Service -sewer department Less: Accumulated Depreciation Construction in Progress RESTRICTED ASSETS: Customer /Construction Deposits Capacity Fees Construction Funds Debt Service Funds -Trust Accts CURRENT ASSETS: Cash and Investments Less: Restricted Cash and Investments Accounts Receivable (net of allowance) Other Receivables (net of allowance) Grants Receivable Inventory Prepaid Expenses OTHER ASSETS AND DEFERRED COSTS (Net of Amortization): Deferred financing charges $124,607,444 31 ,820,033 156,427,477 (50,480,704) 105,946,773 9,623,704 1 15,570,477 1 , 880,192 174,175 14,334,120 1 ,643,903 17.858.215 25,154,264 17,858,215 7.296.049 2, 040,477 207, 781 437,266 974,013 233,289 1 1 ,188, 875 572, 384 572.384 TOTAL ASSETS 145,189,951 Balance Sheet Page 1 East Valley Water District Balance Sheet - Unaudited August 31, 2011 LIABILITIES AND EQUITY LONG -TERM DEBT: 2010 Revenue Bonds Premium on 201 O Revenue Bonds SRF Loans Less: Deferred amount on refunding of COPS CURRENT LIABILITIES PAYABLE FROM RESTRICTED ASSETS: Customer service deposits Construction deposits Accrued interest payable CURRENT LIABILITIES: Accounts payable Accrued payroll and benefits Long Term Debt - amounts due within one year TOTAL LIABILITIES EQUITY: Invested In Utility Plant Restricted: Restricted Developer Fees Designated: Unemployment Insurance Reserve Rate Stabilization Reserve Emergency Reserve Unrestricted / Undesignated - Beginning Earnings YTD -Water Earnings YTD -Sewer TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $32,490,000 2,152,508 2,180, 945 (510,222) 36,313,231 1 ,693,351 186,841 492,478 2,372,670 2,812,420 1,414,717 1 ,070,675 5,297,812 43,983,713 92,520,691 174,175 16,450 326, 307 2,170, 000 4,338,660 1,495,356 164, 599 101,206,238 145,189,951 Balance Sheet Page 2 EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures - Unaudited August 31, 2011 August YTD Annual Actual Budget Variance Actual Budget Variance Budget OPERATING REVENUES Water Sales 1,447,694 1,440,500 7,194 2,914,730 2,885,700 29,030 12,785,000 WaterMeterCharge 325,147 325,405 (258) 649,950 650,810 (860) 4,129,185 Sewer Collection System Charges 333,871 331,000 2,871 669,663 667,000 2,663 3,965,000 Sewer Treatment Charges 531,136 529,000 2,136 1,066,747 1,064,000 2,747 5,819,000 Service Initiation l Installation Chrgs 8,761 6,500 2,261 16,150 13,000 3,150 78,000 Collection Charges 31,079 22,500 8,579 56,734 45,000 11,734 270,000 Main Front footage Fees D 1,600 (1,600) 8,519 3,200 5,319 20,000 Permits &Inspection Charges 100 85 15 375 170 205 1,000 Water Supply Studies 2,677788 2,656,590 21,198 5.382,868 5,328,880 53,988 27.067,185 OPERATING EXPENSES Source Of Supply Supervision and Labor 12,212 12,075 137 24,247 24,150 97 157,000 Overtime Labor 0 385 (385) 0 770 (770) 5,000 Materials &Supplies 155 0 155 155 0 155 0 Purchased Water 112,500 112,500 0 112,500 112500 0 200,000 Groundwater charge 0 0 0 0 0 0 187,500 North FarklCity Creek - Assesmeni 0 0 0 0 0 0 110,000 Maintenance 0 1,000 (1,000) D 2,000 (2,000) 10,000 Water testing 11,179 17,000 (5,821) 41,345 48,000 (6,65 216,000 Water Supply Studies 0 0 0 0 0 05) 40,000 Total Source Of Supply 136,046 142,960 (6,914) 178,247 187.420 (9,173) 925,500 Pumping Supervision and Labor 37,995 39,310 (1,315) 77,951 78,620 (669) 511,000 Overtime Labor 3,505 6,150 (2,645) 8,171 12,300 (4,129) 80,000 Materials &Supplies 2,5fi8 4,200 (1,632) 3,666 8,400 (4,734) 50,000 Maintenance 1,769 28,500 (26,731) 14,510 57,000 (42,490) 335,000 Fuel and Power 218,900 280,000 (61,100) 481,066 560,000 (78,934) 2,100,000 Treatment Chemicals 9782 13750 (3,968) 23,163 27,500 (4,337) 165,000 CIP Labor Credit (1,148) 0 (1,148) (2,313) 0 (2,313) 0 Total Pumping 273,371 371,910 (98,539) 606,214 743,820 (137,606) 3,241,000 Water Treatment Supervision and Labor 8,118 8,460 (342) 14,230 16,920 (2,690) 110,000 Overtime Labor 1,665 2,310 (645) 3,391 4,620 (1,229) 30,000 MaterialsRSupplies 1,481 1,700 (219) 2,374 3,300 (926) 120,000 Maintenance 106 4,200 (4,094) 212 8,300 (8,088) 50,000 Fuel and Power 11,636 14,000 (2,364) 25,325 29,000 (3,675) 125,000 Contracted Treaiment 82,436 160,000 (77,564) 119,988 330,000 (210,012) 1,200,000 Treatment Chemicals 0 4,170 (4,170) 682 8,335 (7,653) 50,000 CIP Labor Credit (1,223) 0 (1,223) (2,318) 0 (2,318) 0 Total Water Treatment 104219 194,840 90,621) 163,884 400,475 (236,591) 1,685,000 RevenuelExpenseStrnt Page 1 Wastewater Treatment Contracted Treatment Trans &Distribution Supervision and Labor Overtime Labor Materials &Supplies Maintenance ND Labor Credit Total Trans &Distribution Wastewater Collection Supervision and Labor Overtime Labor Materials &Supplies Maintenance Total Wastewater Collection Customer Accounts Supervision and Labor Overtime Labor Postage - Billing Contract Services •Billing Contract Svcs -Pmt Processing Credit Checks /Collections Cash Short! Bad Debts Materials &Supplies Total Customer Accounts EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures - Unaudited August 31, 2011 RevenuelExpense Stmt Page 2 August YTD Annual Actual Budget Variance Actual Budget Variance Budget 579,914 592,400 12,486) 1.165,034 1.186100 21,066) 6,640,000 67,976 92,780 (24,804) 140,596 185,560 (44.964) 1,206,160 5,494 5,690 (196) 9,987 11,380 (1.393) 74,000 23,932 37,820 (13,888) 66,397 75,530 (9,133) 343,000 22,188 26,000 (3,812) 34,533 42,000 (7,467) 260,000 (1,194) (47,500) 46306 (1,194) (95,000) 93.806 570,000) 118,396 114,790 3,606 250,319 219,470 30349 1,313,160 22,638 21,170 1,468 46,907 42,340 4,567 275,240 145 850 (705) 370 1,700 (1,330) 11,000 1,099 8,500 (7,401) 5,924 17,000 (11,076) 73,000 1.674 10,000 (8,326) 2,590 20,000 17,410) 175,000 25.556 40,520 14,964) 55,791 81,040 (25,249) 534,240 41.205 41,610 (405) 81,317 83,220 (1,903) 541,000 3,178 5,000 (1,822) 6,853 10,000 (3,147) 60,000 3,340 10,500 (7,160) 12,878 21,000 (8,122) 126,000 10,126 4,200 5,926 13,674 8,400 5,274 50,000 10,599 14,000 (3,401) 20,126 25,000 (4,874) 165,000 2,466 0 2,466 3.957 0 3,957 0 0 3,500 (3,500) 99 3,500 (3,401) 3,500 0 670 (670) 0 1,350 1,350) 8,100 70,914 79,480 (8,566) 138,904 152,470 13,566} 953,600 RevenuelExpense Stmt Page 2 General & Administrative Supervision and Labor Overtime Labor Employee Benefits CIP Labor! Benefits Credit Directors Fees and Expenses Utilities & Telephone Dues & Subscriptions Office Supplies & Expenses Postage Office Equipment General Plant Maintenance Vehicle Maint I Fuel Facilities Lease Contractual Services General Insurance EducationlSeminarslConierences Meals, Lodging, &Travel Employee Programs Licenses & Cenifca6ons Regulatory Fees &Compliance Public Education 1 Outreach Election Expenses Safety Equip! Emergency Ping Total General &Administrative Total Operating Expenses OPERATING INCOME EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures - Unaudited August 31, 2011 452,515 472,300 (19,785) 1,760,931 2,009,200 248,269) 916,857 647,390 269,467 1,054,310 1,065,967 11,657) 3,612,703 4,036,762 424,059) 1,770,165 1,292,118 478,047 6,675.017 21,967,517 5,099,668 RevenuefExpense Stmt Page 3 August YTD Annual Actual Budget Variance Actual Budget Variance Budget 149,504 145,995 3,509 295,802 291,990 3,812 2,062,000 281 3,136 (2,855) 1,777 6,272 (4,495) 40,000 160,821 167,613 (6,792) 353,324 373,202 (19,878) 2,355,417 (12,089) (32,665) 20,576 (23,370) (65,330) 41,960 (392,000) 9,326 12,179 (2,853) 12,623 24,358 (11,735) 148,000 11,843 10,827 1,016 23,796 21,629 2,167 130,000 3,016 4,668 (1,652) 7,259 9,370 (2,111) 58.600 5,405 8,365 (2,960) 16,509 16,685 (176) 100,000 156 1,625 (1,469) 336 3,240 (2,904) 26,000 5,031 4,901 130 11,137 8,953 2,184 135,000 15,175 18,485 (3,310) 31,267 36,995 (5,728) 222,000 26,265 31,846 (5,581) 56,979 63,678 (6,699) 382,000 15,618 15,440 178 44,744 301 850 131 894 185.000 33,923 46,695 (12,772) 166,855 178,275 (11,420) 662,000 21,880 19,000 2,880 43,592 38,000 5,592 230,000 0 2,490 (2,490) 945 4,355 (3,410) 40,000 238 2,370 (2,132) 3,347 4,905 (1,558) 30,000 444 0 444 444 0 444 20,000 150 200 (50) 249 200 49 4,000 4,728 3,400 1,328 5,185 6,850 (1,665) 55,000 100 1,660 (1,560) 100 3,330 (3,230) 20,000 0 0 0 0 0 D 105,000 700 4,070 (3,370) 1,410 8,160 (6,750) 57,000 452,515 472,300 (19,785) 1,760,931 2,009,200 248,269) 916,857 647,390 269,467 1,054,310 1,065,967 11,657) 3,612,703 4,036,762 424,059) 1,770,165 1,292,118 478,047 6,675.017 21,967,517 5,099,668 RevenuefExpense Stmt Page 3 NON - OPERATING ACTIVITY: Revenues: Interest Income Other Income Cooperative Agreements- En ernoc Expenses: Debt Service: 2010 COP Principal Capital Lease -Phone System Interest an LT Debt CAPITAL EXPENDITURES: CAPITAL OUTLAYIREPLACEMENTS Water Company Stock Purchase Office Equipment /Furniture Computer HardwarelSoftware General Equipment Well Rehabilitation CAPITAL PROJECTS -See Summary EXCESS OFREVENUE OVER EXPENDITURES: Add Back Capital Expenditures 8 Principal I�L�II�[��Idif� EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures - Unaudited August 31, 2011 August Actual Budget Variance 838 1,500 (662) 9,453 2,250 7,203 0 0 0 10.291 3,750 6,541 96,471 95,909 562 844 1,124 (280) 62,125 62,317 (192) 159.440 159350 90 YTD Actual Budget Varian ce 3,929 3,000 929 10,123 4,500 5,623 0 0 0 14,052 7,500 6,552 192,941 191,818 1,123 1,679 2,248 (569) 124,258 124,634. (376) 318,878 318.700 178 Annual Budget 33,000 27,000 42,000 � n� nnn 1,168,978 13,490 1,258,600 2,441,068 0 0 0 0 0 0 5,000 0 0 0 0 0 0 5,000 0 0 0 0 0 0 61,000 0 0 0 0 0 0 394.500 0 19,000 (19,000) 0 39,000 (39,000) 260.D00 786,847 0 786,847 786,847 19,000 767,847 (19,139) 472,790 (491,929) 884,162 116,033 768,129 865,023 588,823 276,200 1,178,140 1,737,000 (558,860) 1,178,140 1,776,000 597,860) 287,199 (795,082) 1,082,281 1,372,760 1,97D,066 (597,306) 1,659,959 1,174,984 484,975 1,737,000 2,462,500 2s6,1oo 3,644.968 3,943,068 RevenuelExpense Stmt Page 4 192,941 191,818 1,123 1,679 2,248 (569) 124,258 124,634. (376) 318,878 318.700 178 Annual Budget 33,000 27,000 42,000 � n� nnn 1,168,978 13,490 1,258,600 2,441,068 0 0 0 0 0 0 5,000 0 0 0 0 0 0 5,000 0 0 0 0 0 0 61,000 0 0 0 0 0 0 394.500 0 19,000 (19,000) 0 39,000 (39,000) 260.D00 786,847 0 786,847 786,847 19,000 767,847 (19,139) 472,790 (491,929) 884,162 116,033 768,129 865,023 588,823 276,200 1,178,140 1,737,000 (558,860) 1,178,140 1,776,000 597,860) 287,199 (795,082) 1,082,281 1,372,760 1,97D,066 (597,306) 1,659,959 1,174,984 484,975 1,737,000 2,462,500 2s6,1oo 3,644.968 3,943,068 RevenuelExpense Stmt Page 4 Annual Budget 33,000 27,000 42,000 � n� nnn 1,168,978 13,490 1,258,600 2,441,068 0 0 0 0 0 0 5,000 0 0 0 0 0 0 5,000 0 0 0 0 0 0 61,000 0 0 0 0 0 0 394.500 0 19,000 (19,000) 0 39,000 (39,000) 260.D00 786,847 0 786,847 786,847 19,000 767,847 (19,139) 472,790 (491,929) 884,162 116,033 768,129 865,023 588,823 276,200 1,178,140 1,737,000 (558,860) 1,178,140 1,776,000 597,860) 287,199 (795,082) 1,082,281 1,372,760 1,97D,066 (597,306) 1,659,959 1,174,984 484,975 1,737,000 2,462,500 2s6,1oo 3,644.968 3,943,068 RevenuelExpense Stmt Page 4 786,847 0 786,847 786,847 19,000 767,847 (19,139) 472,790 (491,929) 884,162 116,033 768,129 865,023 588,823 276,200 1,178,140 1,737,000 (558,860) 1,178,140 1,776,000 597,860) 287,199 (795,082) 1,082,281 1,372,760 1,97D,066 (597,306) 1,659,959 1,174,984 484,975 1,737,000 2,462,500 2s6,1oo 3,644.968 3,943,068 RevenuelExpense Stmt Page 4 EAST VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM INCLUDING CAPITAL BUDGET FOR FISCAL YEAR 201 1 - 2012 Current Year Actual Updated through August 2011 Page 1 EAST VALLEY WATER DISTRICT Capital Improvement Program Current Year Actual Updated through August 201 1 rage � Prior Current (Memo) Projects - By Type Years Year 201 0 -11 2011 -12 Actual Actual Budget Year 2 Source of Supply Plant 150 Wells _ _ _ _ Lower Zone Wells (2) _ _ _ _ Plant 24 Drain Line 14,486 407 240,000 - Sunrise Ranch Wells (4) - _ _ _ Total Source of Supply Projects 14,486 407 240,000 - Treatment Facilities Plant 134 - Upgrade Technology 4,271 ,639 986,861 7,21 1 ,715 1 ,253,895 Plant 134 - Membrane Replacement Plant 150 -Lower Zn Perch Treat. PI -Phase 1 1 ,993,126 59,41 9 650,000 241 ,150 Plant 1 50 -Lower Zn Perch Treat. PI -Phase 2 - - - - Plant 152 - Inter. Zone Perch Treat. Plant - - _ _ Total Treatment Projects 6,264,765 1 ,046,280 7,861 ,715 1 ,495,045 Pumping Facilities Plant 9 -Rehab Forebay and Booster Station - - 30,000 270,000 Plant 40 -Inter to Upper Zone Transfer 2,221 - 400,000 - Plant 127 -Lower to Inter Zone Transfer - - - - Plant 12 - Replace Boosters /Well - - - 500,000 Plant 134 -Upper to Canal Zone Transfer - - - 520,000 Plant 39 -Inter to Upper Zone Transfer - - - _ Plant 25 -Inter to Upper Zone Transfer - - - - Plant 143 -Inter to Upper Zone Transfer 32,120 34,550 900,000 550,000 Total Pumping Projects 34,341 34,550 1,330,000 1,840,000 Wastewater Collection System Sewer System Studies /Planning 181 ,049 - 200,000 100,000 Sewer Main Lining 51 - 117,000 450,000 Conejo Main Replacement 933,496 - - - Total Wastewater Collection Projects 1,114,596 - 317,000 550,000 rage � Projections 2012 -13 2013 -14 2014 -15 2015 -16 Beyond Project Year 3 Year 4 Year 5 Year 6 Year 6 Totals - - - 825,000 1 ,100,000 1 ,925,000 - - - - 3,300,000 3,300,000 - - - - - 14,893 - - - - 4,400,000 4,400,000 - - - 825,000 8,800,000 9,639,893 - - - - - 6,512,395 16,990,000 1,025,000 - - - 20,308,695 - 5,050,000 2,850,000 - - 7,900,000 - - - - 19,160,000 19,160,000 16,990,000 6,075,000 2,850,000 - 19,160,000 53,881,090 - - - - 270,000 - 200,000 - - 202,221 300,000 - - - 300,000 500,000 - - - - 1 ,000,000 - 780,000 - - - 1 ,300,000 - - 2,200,000 - - 2,200,000 - - 400,000 - - 400,000 - - - - 1 ,400,000 2,016,670 800,000 980,000 2,600,000 - 1,400,000 7,688,891 - - - - - 281 ,049 450,000 450,000 450,000 450,000 1 ,800,000 4,050,051 - - - 933,496 450,000 450,000 450,000 450,000 1 ,800,000 5,264,596 QIJC J EAST VALLEY WATER DISTRICT Capital Improvement Program Current Year Actual Updated through August 2011 Prior Current (Memo) Projects - By Type Years Year 2010 -11 2011 -12 Actual Actual Budget Year 2 Transmission & Distribution System 6th St 20" Pipeline - Plants 1 1 & 12 to 150 131,985 - 180,000 400,000 Live Oak Main Replacement 207,080 - 115,000 - Harlan Lane Main Replacement 7,957 - 90,000 70,000 Cunningham / Hillview / Crest / Bruce 631,254 - - - 6th St 30" Pipeline - Plant 151 to Plant 40 726,931 1,168 3,675,000 2,000,000 6th St 30" Pipeline - PI 40 to PI 143 - _ _ - 9th St 12" Pipeline - Del Rosa to Sterling - _ - - AMR Meter Replacement Program - 12,841 300,000 300,000 Plant 59 Recoating - - 50,000 250,000 Plant 143 - 1 Omg Inter Zone Storage - - - _ Reservoir - Greenspot Rd S Curve - - Reservoir -Seven Oaks Dam Rd - - _ Relocation of Facilities for Other Agencies 88,378 8,783 100,000 150,000 Eastwood Farms Assessment District 171,772 11,958 2,211,399 - Baseline Gardens 75,953 58,257 - - Total Trans & Distribution Projects 2,041,310 93,007 6,721 ,399 3,170,000 General Projects GIS Implementation 598,643 3,400 100,000 - Headquarters Building - _ _ _ Total General Projects 598,643 3,400 100,000 - TOTAL CAPITAL IMPROVE. PLAN PROJECTS 10,068,141 1,177,644 16,570,114 7,055,045 Miscellaneous / Developer Projects Developer Water Facilities (Reimb by Fees) 226,444 395 Developer Sewer Facilities (Reimb by Fees) (17,590) 101 Regional Treatment Plant 24,246 Seven Oaks Dam (SAR) Discharge 206,057 Northfork Replacement (Highland Ave (q? VFW) 52,409 2010 Flood Clean Up - Highland (4,023) 2010 Flood Clean Up - EVWD Facilities 146,241 TOTAL MISC / DEVELOPER PROJECTS 633,784 495 - - 1 Total Capital Projects 10,701,925 1,178,140 16,570,114 7,055,045 Projections 2012 -13 2013 -14 2014 -15 2015 -16 Beyond Project Year 3 Year 4 Year 5 Year 6 Year 6 Totals - - - - - 531,985 - - - - - 207,080 - - - 77,957 - - - 631,254 - - - - - 2,728,099 - 1,300,000 1,000,000 - 5,400,000 7,700,000 - 700,000 - - - 700,000 300,000 300,000 300,000 300,000 - 1,512,841 - - - - - 250,000 - - - - 10,700,000 10,700,000 - - - - 10,700,000 10,700,000 - - - - 10,700,000 10,700,000 150,000 150,000 150,000 150,000 - 847,161 - - - - - 183,730 - - - - - 134,210 450,000 2,450,000 1,450,000 450,000 37,500,000 47,604,317 - - - - - 602,043 - - - - 10,000,000 10,000,000 - - - - 10,000,000 10,602,043 18,690,000 9,955,000 7,350,000 1,725,000 78,660,000 134,680,831 226,839 (17,489) 24,246 - - - - - 233,595 18,690,000 9,955,000 7,350,000 1,725,000 78,660,000 134,914,426 M ti M N N O O O O O O O O O t[7 O a[ � � V O r N O t� o ti c�i u'i co O r 1� c0 aD �I o 0 0 0 0 0 �° ion �° O O M I� rn c+7 61 CO V o � � � � 0 o a 0 0 0 0 0 0 � � � CO V V t� O O O O � O O V Z o � N V � Z � � -� O W p� Z d O W W O �_ O W � p � W W W � � � w Z � C7 Z O.' 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Of O O z "5 m w � � W o o � o 0 Q W CV N N CV Q :�i L1 I 00 rn O C m Ll W (U C L L u D U U U O O O Cl Z d cU N CD D O C7) C" LT C U J C/3 Q> t¢- < N QJ d a) f- EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Matt Le Vesque MONTH October 2011 Board Meetings 11 -Oct., 25 -Oct. Conferences and Other Meetings DATE ORGANIZATION PURPOSE 3 -Oct BTAC 4 -Oct One View 5 -Oct EVWD 5 -Oct 'EVWD 6 -Oct SBSO 1 1 -Oct "EVWD 1 3 -Oct USARWA 17 -Oct Green Tech Subcommittee on Water and 18 -Oct Power Oversight 1 8 -Oct "EVWD 20 -Oct EVWD 20 -Oct "USGS /Cal EMA 21 -Oct EVWD Travel Expenses: (Details on Back) Direcf or's Signature Date of Board Approval Administrative Manager Miscellaneous Notes Business Intelligence &Performance Metrics Succession Planning Committee - GM Interviews Policy Forum Emergency Preparedness Seminar Succession Planning Committee - GM Interviews Green Tech Summit Hearing Succession Planning Committee w /L. Malmber Meeting w/ I -GM California Shakeout -Info Only Succession Planning Committee TOTAL # OF MEETINGS 10 @ $150.00 each $ 1,500.00 $ 523.61 Total Director's Meetings &Expenses $ 2,023.61 Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 2,023.61 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Matt Le Vesque MONTH Oct 20"I � Board Meetings page 2 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 22 -Oct *City of Highland Discover Highland Night -Info Only 24 -Oct City of Highland Meeting w /Councilmember Lilburn 25 -Oct *Highland Chamber State of the City 27 -Oct IFMA Facilities Expo TOTAL # OF MEETINGS @ $50.00 each $ Travel Expenses: (Details on Back) $ Total Director's Meetings &Expenses $ Director's Signature Date of Board Approval Administrative Manager Miscellaneous Notes Less Any Advance Payments $ TOTAL DUE DIRECTOR $ TRAVEL EXPENSES Lodgings: (Detailed receipts attached *) � DATE FUNCTION ATTENDED AMOUNT $ TOTAL LODGING $ Personal Auto: (Detailed receipts attached *) PARKING DATE FUNCTION ATTENDED MILES FEES 17 -Oct Green Tech Expo $ 9.00 21 -Oct Succession Planning 48 $ 27 -Oct Facilities Expo 58 $ 18.00 TOTAL FEES $ 27.00 CURRENT RATE: $0.555 TOTAL MILES 106 $ 58.83 Meals: (Detailed receipts attached *) DATE FUNCTION ATTENDED AMOUNT 18 -Oct Succession Planning Committee w/ L. Malmberg $ 16.38 $ TOTAL MEALS $ 16.38 Other: (Detailed receipts attached *) DATE FUNCTION / NATURE OF EXPENSE AMOUNT 27 -Oct Facilities Expo -SWA $ 371.40 27 -Oct Facilities Expo -cabs $ 50.00 $ TOTAL OTHER $ 421.40 'ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ 523.61 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Larry Malmberg Board Meetings "10- 11 -11; "10 -25 -11 Conferences and Other Meetings DATE ORGANIZATION MONTH October 2011 PURPOSE 5 -Oct 'EVWD Interviews GM applicants 11 -Oct EVWD Interviews GM applicants 12 -Oct "SBACC SB Chamber 18 -Oct 'EVWD Meet with Matt, Successions Planning 18 -Oct EVWD SAS Congressional Hearing at Highland City Council Chamber 19 -Oct `SBACC SB Chamber 21 -Oct "EVWD Meet with Dr_ Mathis, AGM, Matt re successon planning 26 -Oct "SBACC SB Chamber TOTAL # OF MEETINGS 8 @ $175.00 each $ 1 400.00 Travel Expenses: (Details on Back) ' � \ ` �,� 'lam „-�._ J Director's Signature `) i. 1-C ��'`- - -1- -� Date of �.= �"'� - -- �y \� Board Approval '`�__T_.�._� Administrative Manager Miscellaneous Notes $ 20.40 Total Director's Meetings &Expenses $ 1 ,420.40 Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 1 .420.40 TRAVEL EXPENSES Lodgings_ (Detailed receipts attached *) DATE FUNCTION ATTENDED AMOUNT $ TOTAL LODGING $ Personal Auto: (Detailed receipts attached *) DATE FUNCTION ATTENDED PARKING MILES FEES 21 -Oct Successon Planning Meeting in Fontana 40 $ TOTAL FEES $ CURRENT RATE: $0.51 TOTAL MILES 40 $ 20.40 Meals: (Detailed receipts attached *) DATE FUNCTION ATTENDED AMOUNT $ $ Jther: (Detailed receipts attached *) TOTAL MEALS $ SATE FUNCTION / NATURE OF EXPENSE AMOUNT ORIGINAL RECEIPTS REQUIRED TOTAL OTHER $ TRAVEL EXPENSES $ 20.40 EAST VALLEY WfATER DISTR:DT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Sturgeon MONTH 10 2011 Board Meetings 11 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 3 BTAC Meeting 4 SBVMWD Meeting 17 Pasadena Green Trade Show TOTAL # OF MEETINGS 4 @ $150.00 each $ 600-00 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 6 0 0 . O 0 Director's Signature Less Any Advance Payments $ Date of T Board Approval November 8 2011 TOTAL DUE DIRECTOR $ 6 0 0_ 0 0 Administrative Manager Miscellaneous Notes EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Wilson MONTH Oct , 2011 Board Meetings 10/11; 10/25 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 4 -Oct E\/WD Mtg with Gen Mgr 18 -Oct SAS Cong Hearing @ Highland Ci Hall TOTAL # OF MEETINGS 4 @ $175.00 each $ 700.00 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 700.00 Director's Signature �' Less Any Advance Payments $ Date of �- Board Approval TOTAL DUE DIRECTOR $ 700.00 Administrative Manager Miscellaneous Votes East Valley Water District Staff Report Meeting Date: November 8, 201 1 TO: Board of Directors SUBJECT: Disbursements SUMMARY: Issue — Prudent fiscal policy and fiscal transparency Recommendation — Approve the attached list of accounts payable checks and payroll issued FiscalImpact— $1,200,474.03 (budgeted expenditures) Previous Related Action — None BACKGROUND A listing of accounts payable checks, and the total for payroll and benefits costs incurred, are submitted to the board of directors for review and approval with each board packet. The attached check register, and the total for payroll cited below, were disbursed during the period October 19, 201 1 through November 1, 201 1. DISCUSSION Accounts payable checks for the period included check numbers 230367 through 230486 for a total of $1,029,019.16. The source of funds for this amount is as follows: Unrestricted Funds $619,736.84 Bond Financing $ State Financing $409,282.32 Payroll and benefit contributions paid for this period totaled $171,454.87. Total disbursed during the period October 19 to November 1, O 1 1 is $1,200,474.03. Res ctfully Sub�� A ed by> rian W. Tomp ins obert A. DeL ach Chief Financial Officer Interim General Manager SR# 0038 Dale: Tuesday, November 01, 2011 Time: 10:07AM User. KATHY Check Nbr T7e Date 230367 CK 1011912011 085308 VO 71200 230368 095205 230369 085291 230370 084881 230371 oas2as 085253 o8s2aa 085245 085246 085247 085248 085250 085251 085252 230372 084893 230373 085227 085266 085269 230374 085309 230375 085283 230376 085262 230377 065266 065266 CK VO CK VO CK VO CK AD AD VO VO VO VO VO VO VO VO CK VO CK VO VO VO CK VO CK VO CK VO CK VO VO 1011912011 61000 10!1912011 11200 1011912011 22210 1011912011 76800 76800 16800 76800 76800 76800 76800 76800 76800 76800 1011912011 22210 1011912011 71015 71015 71015 10!1912011 73100 10119!2011 71725 1011912011 77400 10119!2011 11200 11200 East Valley Water Fund Check Register • EVWD Check Register Id Name ProiectlD Project Description ADP002 ADP, INC Payroll Processing Service -ADP Al R005 AIRGASWEST Materials & Supplies -Oper. ALL049 ALLIANT CONSULTING, INC Construction in Progress WA002292 Plant 134 Upgrade ALV059 ALVARADO-GONZALO ALEZ Customer Refunds AME019 AMERIPRIDE SERVICES, INC Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms ATL008 REAL ESTAT- ATLANTIC & PACIFIC Customer Refunds ATT007 AT &T Telephone Telephone Telephone AUD001 COUNTY TREASURERlCONTROLLER AuditlAccounting Fees AUT010 AUTO UPHOLSTERY INC. Vehicle RepairslMaintenance BEC005 BECERRA- RICHARD Licenses and Certifications BR0001 BRUNICK, MCELHANEY & BECKETT Construction in Progress WA002448 EASTWOOD FARMS MUTUAL WATER Construction in Progress WA002507 Western Wtr Mtr Collaboration Page: 1 of 10 Report: APCHK.rpt Company: EVWD Discount OrigDocAmt DrCr 328.80 328.80 D 85,27 85.27 D 1,091.00 1,091.00 D 34.82 34.82 D 1,159.80 -450.36 C - 103.44 C 25.00 D 25.00 D 25.00 D 25.00 D 742.61 D 253.35 D 258.85 D 358.79 D 59.10 59.10 D 320.89 47.20 D 31.16 D 242.53 D 18.00 18.00 D 129.50 129.50 D 120.00 120.00 D 8,28125 53125 D 406.25 D Dale: Tuesday, November 01, 2011 ast Valley Water Fund Page: 2 of 10 Time: M Check Register - EVWD Check Register Report: APCHK.rpt User: �(TH KATHY Company: EyWp Check Nbr Type Date Id Name Pro iectlD Project Description Discount OrigDocAmt DrCr 085266 VO 11200 Construction in Progress WA002523 DAIRY QUEEN 856.25 D 085266 VO 72400 Legal Fees 6,487.50 D 230378 CK 10/19/2011 CIT029 CITY NATIONAL BANK 40,928,23 085294 VO 22275 Retention Payable 40,928.23 D 230379 CK 1011912011 CL1002 CLINICAL LAB OF S B 6,841.25 085221 VO 65200 Water Testing 6,841.25 D 230380 CK 10/1912011 C00036 COUNTY OF SAN BDNO FLEET 355.27 085232 VO 71756 Equipment Fuel and Oil 355.27 D 230381 CK 10/1912011 FA1002 FAIRVIEW FORD SALES,INC 175.57 085284 VO 71720 Vehicle Parts /Supply 161.96 D 085255 VO 71720 Vehicle Parts /Supply 13.61 D 230382 CK 10/1912011 FAR001 FARMER BROS CO 461.17 085275 VO 71503 Kitchen Supplies 12.97 D 085276 VO 71503 Kitchen Supplies 342.66 D 085312 VO 71503 Kitchen Supplies 105.54 D 230383 CK 10/19/2011 FED001 FedEx 21.08 085307 VO 11200 Construction in Progress WA002509 Baseline Garden Wtr Company 21.08 D 230384 CK 10/19/2011 FUR002 FURNEY- DOLORES 68.12 084814 VO 22210 Customer Refunds 68.12 D 230385 CK 10/19!2011 HAC001 HACH COMPANY 1,674.45 085313 VO 61000 Materials &Supplies -Oper. 1,674.45 D 230386 CK 10/1912011 HAT001 HATFIELD BUICK 209.53 085286 VO 71720 Vehicle PartslSupply 102.63 D 085267 VO 71720 Vehicle PartslSupply 106.90 D 230387 CK 10119/2011 HEN023 HENSON— CHRISTA 85.00 0aa81s VO 22210 Customer Refunds 85.00 D 230388 CK 10/19!2011 HIG023 CARWASH- HIGHLAND HAND 168.87 085233 VO 71725 Vehicle RepairslMaintenance 168.87 D 230389 CK 10/1912011 HIP002 HIPPENSTIEL DBA— CHARLES W 1,650.00 oes2sa VO 79100 Safety Equipment 800.00 D ees2ss VO 79100 Safety Equipment 850.00 D Date: Tuesday, November 01, 2011 Time: 10:07AM User: KATHY CheckNbr Type Date 230390 CK 1011912011 oesz3s VO 61000 230391 085314 085315 230392 084882 230393 085255 230394 08529fi 230395 065277 085288 oeszfis 230396 085295 230397 085272 230398 085204 230399 065222 065234 230400 085236 085260 085261 230401 085237 065236 085239 085240 CK VO VO CK VO CK VO CK VO CK VO VO VO CK VO CK VO CK VO CK VD VO CK VO VO VO CK VO VO VO VO 10!1912011 61000 61000 10N912011 22210 1011912011 66250 1011912011 71705 1011912011 71755 71755 71155 1011912011 71500 1011912011 71550 1011912011 65100 1011912011 74900 74900 10119!2011 71725 71125 71725 1011912011 71720 71727 71720 71727 East Valley Water Fund Check Register • EVWD Check Register Id Name ProiectlD Pro iectDescription HUB001 HUB CONSTRUCTION SPECIALTIES Materials & Supplies -Oper. INL005 INLAND WATERWORKS SUPPLY CO Materials & Supplies -Oper. Materials & Supplies -Oper. INLO21 INLAND FISH & GAME Customer Refunds JAC038 JACK HENRY & ASSOCIATES INC Payment/Collection Fees JAC048 JACINTO FARMING, INC -LARRY Grounds Repairs /Maintenance JOH001 JOHNSON MACHINERY CO Equipment RepairslMaintenancE Equipment RepairslMaintenanCE Equipment RepairslMaintenancE JRF001 J.R. FREEMAN CO., INC Office Supplies KON004 KONICA MINOLTA BUSINESS Office Equipment MaintContract LE5002 LESLIE'S POOL SUPPLIES, INC Treatment Chemicals MAT036 MATHIS- ROBERTW Miscellaneous Consultants Miscellaneous Consultants MMS001 M AND M SMOG INC. Vehicle RepairslMaintenance Vehicle RepairslMaintenance Vehicle RepairslMaintenance NAP007 NAPA AUTO PARTS IB05S MOSS Vehicle Parts /Supply Garage SupplieslSmall Tools Vehicle PartslSupply Garage SuppliesfSmall Tools Page: 3 o 10 Report: APCHK.rpl Company: EVWD Discount OrigDocAmt DrCr 144.72 144.72 D 333.08 -3.20 159.84 D -3.60 180.04 D 58.83 58.83 D 609.70 609.70 D 2,460.50 2,460.50 D 150.25 24.34 D 13.61 D 112.30 D 576.71 576.71 D 207.15 207,15 D 92.23 92.23 D 1,869.28 829.28 D 1,040.00 D 10425 34.75 D 34.75 D 34.75 D 112.48 51.22 D 29.61 D 17.86 D 13.79 D Date. Tuesday, November 01, 2011 East Valley Water Fund Page. 4 of 10 Time: 1o:o7AM Check Register - EVWD Check Register Report: APCHK.rpt User: KATHY Company: EVWD Check Nbr Type Date Id Name ProiectlD Proiect Description Discount OrigDocAmt DrCr 230402 CK 1011912011 NEX001 NEXTEL COMMUNICATIONS 1,713.87 085226 AD 71015 Telephone 114.25 C 0as2zs VO 71015 Telephone 1,069.74 D 085225 VO 71305 Comm unicationsEquip ReplMair 758.38 D 230403 CK 1011912011 NGU119 NGUYEN -TUAN H 42.73 084883 VO 22210 Customer Refunds 42.73 D 230404 CK 1011912011 OFF007 OFFICETEAM 656.00 085267 VO 51700 Temporary Labor 656.00 D 230405 CK 10119!2011 PLO002 PLUS 1 PERFORMANCE 426.24 085241 VO 71725 Vehicle RepairslMaintenance 426.24 D 230406 CK 10119!2011 PROO16 SAMUEL ADAM VICKERY 945.00 085223 VO 77300 Employee Programs 945.00 D 230407 CK 1011912011 REA018 SERVICES & SOLUTION —REAL HOME 63.07 084816 VO 22210 Customer Refunds 63.07 D 230408 CK 10!1912011 RIP001 RIPLEY- EMILIANA 15.95 084817 VO 22210 Customer Refunds 15.95 D 230409 CK 10119/2011 SAF001 SAFETY KLEEN ACCOUNTS PAYABLE 525.99 085278 VO 71727 Garage Supplies /Small Tools 525.99 D 230410 CK 10119!2011 SCA002 SCARANO- NICOLE 68.30 084818 VO 22210 Customer Refunds 68.30 D 230411 CK 10119/2011 SEN001 SENTRY -TECH SYSTEMS, L.L.C. 1,475.00 088280 VO 72500 Security Services 1,475.00 D 230412 CK 10119!2011 SNI002 SNIPES�RAMONA 25.80 oaaels VO 22210 Customer Refunds 25.80 D 230413 CK 10!1912011 S00002 SO CAL GAS COMPANY 16.82 088273 VO 71010 Utilities 16.82 D 230414 CK 10119/2011 S00004 SO CAL EDISON COMPANY 248,764.77 oas27a VO 63000 Electric 246,064.43 D 0asz7a VO 71010 Utilities 2,700.34 D 230415 CK 10!19/2011 SOU024 SOUTHERN CALIF OCCUPATIONAL 1,100.00 Date: Tuesday, November 01, 2011 East Valley Water Fund Page: 5 o 10 Time: 10 07A Check Register • EVWD Check Register Repod, APCHKrpt User: KATHY Company: EVWD Check Nbr Type Dale Id Name ProiectlD Project Description Discount OrigDocAmt DrCr 055224 VO 71540 Medical Fees 1,100.00 D 230416 CK 10/1912011 SSCO01 SSC CONSTRUCTION, INC. 368,354.09 085293 AD 22275 Retention Payable - 40,928.23 C 085292 VO 11200 Construction in Progress WA002292 Plant 134 Upgrade 409,282.32 D 230417 CK 10/19/2011 STA041 STAR AUTO PARTS 6.34 o85242 VO 71755 Equipment RepairslMaintenancE 6.34 D 230418 CK 1011912011 SWA002 SWAINS ELECTRIC MOTOR SERVICE 12,438.44 085290 VO 62000 Maintenance 12,438.44 D 230419 CK 10/1912011 TOM001 TOM DODSON & ASSOCIATES 8,192.75 085297 VO 11200 Construction in Progress WA002509 Baseline Garden Wtr Company 6,11435 D 085298 VO 11200 Construction in Progress WA002502 Plant 143 Fac Planing Study 2,078.00 D 230420 CK 10/1912011 UN1002 UNITED PARCEL SERVICE 39,89 085203 VO 71505 Postage 33.61 D 085254 VO 71505 Postage 6.28 D 230421 CK 1011912011 UN1013 UNION BANK OF CALIFORNIA 216,988.55 085243 VO 13540 Installment Fund -2010 216,988.55 D 230422 CK 1011912011 UN1021 UNITED SITE SERVICES 261.88 085310 VO 62000 Maintenance 155.71 D 085311 VO 62000 Maintenance 106.17 D 230423 CK 1011912011 USA006 USA MOBILITY WIRELESS,INC 208.66 o5sz2o VO 71300 Communications Services 208.66 D 230424 CK 1011912011 VAL068 VALERO MARKETING &SUPPLY COMP 13,020.32 065257 AD 71756 Equipment Fuel and Oil - 103,02 C ces25s VO 71756 Equipment Fuel and Oil 13,123.34 D 230425 CK 1011912011 VER004 VERIZON CALIFORNIA 90.11 ces27o VO 71015 Telephone 43.54 D 085271 VO 71015 Telephone 46.57 D 230426 CK 1 011 91201 1 VUL001 VULCAN MATERIALS COMPANY 631.14 oasz7s VO 61000 Materials &Supplies -Oper. 831.14 D 230427 CK 10!19/2011 WAR024 WARD�DOREEN G 33.54 084884 VO 22210 Customer Refunds 33.54 D Date. Tuesday, Novem6erD1, 2011 Time: 10:07AM User: KATHY Check Nbr TJ� Date 230428 CK 1011912011 085280 VO 71625 230429 CK 10/1912011 085282 VO D 230430 085281 230431 084894 230432 085371 230433 085323 230434 085384 230435 085332 085333 230436 064911 D85352 230437 D85316 230438 085317 085318 230439 085395 23044D 085385 230441 065349 CK VO CK VO CK VO CK VO CK VO CK VO VO CK VO VO CK VO CK VO VO CK VO CK VO CK VO iL 71305 10/19/2011 71500 1011912011 22210 1012712011 62500 10/27/2011 61010 10127/2011 23191 10/2712011 71725 71725 10/2712011 22210 22210 10/2712011 77400 1012712011 72500 72500 1o/27no11 79100 1012712011 23160 1012712011 71010 East Valley Water Fund Check Register • EVWD Check Register Id Name ProiectlD Project Description WAX001 WAXIE SANITARY SUPPLY Janitorial Supplies WIRO03 WIRELESS WATCHDOG, LLC CommunicationsEquip Rep /Mair WIR004 WIRZ & COMPANY PRINTING, INC Office Supplies Y00036 YOUNG - REGIONAL Customer Refunds ADV001 ADVANCED TELEMETRY SYS INTL Maintenance Telemetry ALL050 ELECTROINCS INC - ALLIED Materials & Supplies•Maint. ARRO09 ARROWHEAD UNITED WAY United Way Deduction AUT010 AUTO UPHOLSTERY INC. Vehicle Repairs /Maintenance Vehicle RepairslMaintenance BAN030 BANOS INC-ROGER Customer Refunds Customer Refunds BAR006 BARLOW -DALE Licenses and Certifications BAR074 BARRY'S SECURITY SERVICES, INC Security Services Security Services BEC002 BECERRA- RICHARD Safety Equipment CIT018 CITISTREET Deferred Compensation CIT021 S.B.M.W.D. Utilities Page: 6 of 10 Report: APCHK.rpl Company. EWVD Discount OrigDocAmt DrCr 1,568.47 1,568.47 D 228.00 228.00 D 874.08 874.08 D 168.26 168.26 D 7,320.00 7,320.00 D 158.43 158.43 D 55.00 55.00 D 336.25 154.50 D 181.75 D 72.31 37.87 D 34.44 D 80,00 80.00 D 2,733.09 1,378.08 D 1,355.01 D 85.86 85.86 D 6,225.50 6,225.50 D 573.48 279.86 D Dale: Tuesday, November 01, 2011 Time: 10:07AM User: KATHY Check Nbr Type Date 085350 VD 71010 085351 VO 71010 230442 085355 230443 085334 230444 085324 230445 085325 230446 085386 230447 084915 230448 065376 230449 085335 230450 oe4s12 230451 084916 230452 085396 230453 085310 085331 230454 085394 085390 085392 CK VO CK VO CK VO CK VO CK VO CK VO CK VO CK VO CK VO CK VO CK VO ZC AD VO CK AD VO VO 1012712011 22210 1012712011 71720 10!2712011 71500 1012712011 22207 1012712011 23195 10127!2011 22210 10127/2011 61010 1012712011 71720 1012712011 22210 1012712011 22210 10!2712011 71105 1012712011 22210 22210 10127/2011 13700 71950 71950 East Valley Water Fund Check Register - EVWD Check Register Id Name ProiectlD ProiectDescription Utilities Utilities COL051 COLLAZO -JOSE C Customer Refunds CRE001 CREST CHEVROLET Vehicle Parts /Supply DAY001 DAY - TIMERS, INC Office Supplies DEL067 DELOACH DBA- ROBERT A Contracts Payable EAS003 East Valley Water District FSA Withholding EAS013 EAST VALLEY PROPERTY MGMT Customer Refunds EWI001 EWING IRRIGATION PRODUCTS INC Materials & Supplies - Maint. FLE011 FLEET SERVICES INC Vehicle Parts /Supply GAR145 GARCIA�HECTOR Customer Refunds GAR146 GARCIA- JOHNNY Customer Refunds HAM026 HAMPTON INN &SUITES Meals, Lodging, Travel HER142 HERNANDEZ�JORGE Customer Refunds Customer Refuntls HIG028 HIGHLAND STAR LLC Other Receivables Facilities Rent Facilities Rent Page: 7 or 10 Report. APCHK.rp1 Company: EVWD Discount Ori DocAmt DrCr 119.18 D 174.44 D 33.81 33.81 D 102.48 102.48 D 162.49 162.49 D 3,500.00 3,500.00 D 1,073.15 1,073.15 D 67.06 67.06 D 8.04 8.04 D 10.07 10.07 D 6.96 6.96 D 61.61 61.61 D 414.84 414.84 D 0.00 -37.60 C 37.60 D 13,102.40 - 1,000.00 C 9,040.00 D 5,062.40 D Date: Tuesday, November 01, 2011 Time: East Valley Water Fund Page: 8 of 10 10:07AM Check Register - EVWD Check Register Repoli, APCHK.rpt User: KATHY Company: EVWD Check Nbr Type Date Id Name ProiectlD Proiect Description Discount OrigDocAmt DrCr 230455 CK 10127/2011 HUB001 HUB CONSTRUCTION SPECIALTIES 75.49 085346 VO 61100 Small Tools 75.49 D 230456 CK 10127/2011 INT005 INTERSTATE BATTERY 160.13 085336 VO 71755 Equipment Repairs /MaintenanCE 160.13 D 230457 CK 10/2712011 JOH086 JOHNSON BUENA VISTA LLC 58.76 085358 VO 22210 Customer Refunds 58.76 D 230458 CK 1012712011 JRF001 J.R. FREEMAN CO., INC 43.15 085337 VO 71500 Office Supplies 43.15 D 230459 CK 10127/2011 KAR006 KARAMOY- FRIEDA 2131 084913 VO 22210 Customer Refunds 21.31 D 230460 CK 10/27/2011 KEL022 REALTY - KELLER WILLIAMS 54.39 085359 VO 22210 Customer Refunds 54.39 D 230461 CK 10/2712011 KEND18 KENNEDY —MICAH 90.00 085315 VO 77400 Licenses and Certifications 90.00 D 230462 CK 10127/2011 LAW003 LAWSON PRODUCTS,INC 1,398.02 085326 VO 61000 Materials & Supplies -Oper. 760.70 D 085374 VO 61000 Materials & Supplies -Oper. 346.36 D 085375 VO 61000 Materials & Supplies -Oper. 15.13 D 085371 VO 61000 Materials &Supplies -Oper. -2.79 278.62 D 230463 CK 1012712011 LPS001 SERVICES INC —LPS FIELD 131.75 084914 Vp 22210 Customer Refunds 085350 VO 22210 Customer Refunds 45,44 D 085361 VO 22210 Customer Refunds 4524 D 41,07 D 230464 CK 10I27Q011 MAR200 MARTINEZ- GEORGINA 30.01 Oaas17 VO 22210 Customer Refunds 30.01 D 230465 CK 10127!2011 MAT036 MATHIS- ROBERTW 10,475.00 085320 VO 74900 Miscellaneous Consultants 10,475.00 D 230466 CK 10!2712011 MIR019 MIRANDA- KATRINA 3192 084518 VO 22210 Customer Refunds 31.92 D 230467 CK 10/2712011 NAP007 NAPA AUTO PARTS /BOSS MOSS 55.12 oas3aa VO 71720 Vehicle Parts /Supply 55.12 D Date: Tuesday, November 01, 2011 East Valley Water Fund Page: 9 O 10 Time: MOM Check Register • EVWD Check Register Repon: APCHK.rpt User: KATHY Company: EVWD Check Nbr Type Dale Id Name ProiectlD Project Description Discount OrigDocAmt DrCr 230468 CK 1012712011 NOB003 NOBEL SYSTEMS, INC. 4,580.00 085398 VO 11200 Construction in Progress WA002374 GIS SYSTEM 4,580.00 D 230469 CK 10012011 OFF007 OFFICETEAM 524.80 085397 VO 51700 Temporary Labor 524.80 D 230470 CK 10127/2011 ONL001 ONLINE RESOURCES CORPORATION 54.05 085346 VO 66250 Payment/Collection Fees 54.05 D 230471 CK 1012712011 PAT035 PATTERSON- DONALD 14.06 084919 VO 22210 Customer Refunds 14.06 D 230472 CK 1012712011 PRC001 CONSTRUCTION -P R 1,743.99 085230 VO 22210 Customer Refunds 1,364.66 D 085364 VO 22210 Customer Refunds 379.33 D 230473 CK 10127!2011 REE017 RELATION, LLC -REEB GOVERNMENT 5,400.00 085378 VO 74210 Legislative Consultants 51400.00 D 230474 CK 1012712011 RMC001 RMC WATER AND ENVIRONMENT 1,125.02 085372 VO 74500 Engineering Consultants 1,125.02 D 230475 CK 1012712011 R00001 ROQUET PAVING 8,831.50 085373 VO 62000 Maintenance 8,831.50 D 230476 CK 10/2712011 SAL051 SALAS-ISMAEL 224.56 osas2o VO 22210 Customer Refunds 224.56 D 230477 CK 10!27!2011 SAN007 SAN BDNO PUBLIC EMPLOYEES ASSN 740.29 085387 VO 23170 Union Dues 740.29 D 230478 CK 1012712D11 SHA022 INVESTMENTS LLC -SHARK 20.08 aaaszl VO 22210 Customer Refunds 20.08 D 230479 CK 1012712011 SOW001 SOWLE -HENRY 90.00 085321 VO 77400 Licenses and Certifications 90.00 D 230480 CK 1012712011 STA055 STATE DISBURSEMENT UNIT 2,172.31 o6s3ae VO 23190 Miscellaneous Deductions 763.81 D 085389 VO 23190 Miscellaneous Deductions 1,408.50 D 230481 CK 10127/2011 VAS026 VASQUEZ�RUBEN 91.63 084972 VO 22210 Customer Refunds 71.76 D Daie: Tuesday, November 01, 2011 Time 10:07AM User: KATHY Check Nbr T�7e Date 084973 VD 22210 230482 085368 230483 085347 230484 085369 230485 085322 230486 oeaool CK VO CK VO CK VO CK VO CK VO 10/27/2011 22210 10/2712011 61000 1ar2712o11 22210 10/2712011 77400 10/26!2011 74900 East Valley Water Fund Check Resister - EVWD Check Register Id Name ProiectlD Proiect Description Customer Refunds A L054 VILLESCAS -ALMA Customer Refunds VUL001 VULCAN MATERIALS COMPANY Materials & Supplies -Oper. WIL129 WILLIAMS- MARYANN Customer Refunds YOU001 YOUNG -GARY Licenses and Certifications WIL096 WILLDAN FINANCIAL SERVICES Miscellaneous Consultants Total Page: 10 of 10 Report . APCHK.rpt Company: EVWD Discount OrigDocAmt DrCr 19.87 D 47.41 47.41 D 2,738.87 2,738.87 D 77.50 77.50 D 105.00 105.00 D 1,500.00 1,500.00 D 1,029,019.16 East Valley Water District Staff Report Meeting Date: November 8, 201 1 TO: Board of Directors SUBJECT: i- Iarmony Development Project SUMMARY: Issue — Presentation by Lewis Operating Corporation on the Harmony Development Project Recommendation — None. Presentation is for information and discussion only Fiscal Impact — None Previous Related Action — None BACKGROUND The Ilarmony Development Project, formerly known as Sunrise Ranch, is an approximately 1,600 Acre parcel of land located in the eastern portion of the District. This land is currently majority owned by Orange County Flood Control District with partial ownership by Riverside County Flood Control District and San Bernardino County Flood Control District. Orange County FCD being the lead agency has hired Lewis Operating Corp. to start the entitlement process. This project due to its size and location presents some real challenges in terms of water and sewer service_ The presentation will provide conceptual exhibits that show how Orange County plans to provide water and sewer service to this development. DISCUSSION Currently the District does not have any water and sewer services serving this area nor does it have any near this development. Sewer service would need to have either several miles of sewer main installed with Lift (pumping) Stations along the way or as an alternate have a sewer treatment plant built to treat the sewage. They are advantages and disadvantages to both these alternatives but one advantage to a sewage treatment plant that has been discussed internally is the ability to provide recycled water as a result of treatment sewage. This will provide credits to the District in terms of meeting the 20% water savings per person by 2020 conservation measures. Water service for this development would be provided through Wells constructed in the area and /or through connection to the San Bernardino Valley Municipal Water District raw water transmission SR# 0041 main. A connection to the SBVMWD main would necessitate a surface water treatment plant and would require a backup service (such as ground water wells or a connection to the District's distribution system) as State Water Project water cannot be the primary source of water to any development. The presentation will discuss the domestic water, sewer treatment and recycled water concepts in more detail. Respectfully Submitted, Ron Buchwald District Engineer Attachments Exhibits Ap ed by, �� ' Robert A. DeLoa h Interim General anager SR# 0041 HARMONY Domestic Water Concept a.i U C 0 � V Z p,� O h0 � � oc t Q U _ � L 4J �-.+ CO �A �� � MEMORANDUM November 1 , 201 1 TO: Robert DeLoach, Interim General Manager East Valley Water District FROM: Bob Reeb and Raquel Ayala Reeb Government Relations, LLC SUBJECT: 2011 Annual Report This is the fourth year that Reeb Government Relations has had the honor and privilege to work with East Valley Water District (EVWD or District) to advance the interests of the District, its taxpayers and customers in the State Capitol. Together, the EVWD Board of Directors, District management and staff, and Reeb Government Relations continue to be an effective voice for common sense legislation and regulations that enable, rather than detract from, pursuit of the District's mission. Governor Brown Takes Office; Budget Dominates Agenda Edmund G. Brown, Jr. was sworn into this third term as Governor of California, having first served two consecutive terms between 1974 and 1982_ He joined a new Legislature sworn into office in December 201 O. Senate Democrats retained a 25 -15 seat majority and in the Assembly, the Democratic majority swelled to 52 -28. The Democrat - Repubtican ratio left Democrats just two seats shy of asuper- majority in both houses_ During his 2010 campaign, Governor Brown said: "The next Governor must be ready to stand against the crowd to lead a broken legis /ature out of a morass of poisonous partisanship. /t wi /l take o/d fashioned hard work, patience, and a keen understanding of the process. "/ have a deep know /edge about how government functions and how po /iticians operate. /have seen it as a governor, as a mayor, and as Attorney Genera /. / know how to get budgets done - balanced and on time_ /have /earned first -hand how stupid state regulations can stop jobs and development in cities like Oak /and; and how ridiculous jurisdictional squabb /es and end less rules de /ay the construction of new transmission lines to bring solar energy to our cities. /know how to break political log jams, both in cities and at the State Capita /. -1- As Governor / wi // ensure that money is spent carefu //y and that state government is operated as efficient /y as possib /e. /have always taken a no nonsense and frugal approach to taxpayers' money. " In January, the estimated General Fund (GF) shortfall was $27.6 billion - including a $1 billion reserve and reflecting the cancellation of a state building sales - leaseback transaction program. In March, the Legislature passed $14 billion in solutions, primarily spending reductions_ On May 16, Governor Brown unveiled a revised state budget that, according to the Governor, reduced by nearly $3 billion the amount of taxes needed to balance the budget, spurred job creation through new tax incentives and paid off most of the $34.7 billion debt built up over the last decade. The revised budget also proposed that the Legislature implement and that voters ratify a plan to extend for five years sales tax and vehicle license fee rates and the dependent credit exemption level that were set to expire on June 30, 2011. The May budget revision did not seek a 2011 personal income tax surcharge, but would have reinstated it for the 2012 through 2015 tax years. The Legislature adopted most of the Governor's May Revision framework that relied on about $11 billion in additional revenues. However, with the deadline for passing a budget fast approaching, and the Governor's inability to reach a deal with Republican legislators to obtain the 4 votes needed — 2 in the Assembly and 2 in the Senate — to extend the sales tax and vehicle license fee increase until an special election on taxes could be held; the Democratic majorities in both houses passed by a majority vote their first spending plan for closing the budget gap. The Governor received the first budget on June 15, the constitutional deadline for passing the state budget plan, but vetoed the measure within 24 hours after he received it. "Unfortunately, the budget I have received is not a balanced solution," the Governor wrote legislative leaders. "It continues big deficits for years to come and adds billions of dollars of new debt. It also contains legally questionable maneuvers, costly borrowing and unrealistic savings. Finally, it is not financeable and therefore will not allow us to meet our obligations as they occur." In November 201 O, voters approved Proposition 25 which lowered the threshold for passing the State spending plan from a 2/3 vote to a simple majority vote, However, it also required legislators to send a budget to the Governor's desk by the constitutional deadline of June 15 or else permanently forfeit their salary for each day the budget was late. State Controller John Chiang, who issues state paychecks, determined that Proposition25 requires lawmakers to send the governor a "balanced budget" to meet the pay requirement and docked the salary of legislators until a balanced budget was passed. At a press conference after vetoing the budget, Governor Brown said, "We need four Republican votes, and in the next several days I'm going to do everything I can._. I'll move heaven and earth to get those votes." Republican Senators Anthony Cannella, Tom Berryhill, Bill Emmerson, and Tom Harman, were said to be willing to vote to place taxes on the ballot if their conditions were met, but not to extend the taxes before they -2- expire on July 1. The Republican Senators sought a spending cap, state pension reform, relaxed environmental protection laws and reduced state regulations. But talks never delivered a compromise agreement and the Governor, in the end, worked with legislative Democrats to identify additional alternative solutions, as well as retain many of the solutions from the June 15 budget, to close the state's remaining $9.6 billion deficit and ensure a balanced budget in 2011 -12. On June 30, Governor Jerry Brown signed the state spending plan for fiscal year 2011- 2012 —the second majority -vote budget sent to the Governor within two weeks of the first. The second majority -vote budget package relies on spending cuts, a projected $4 billion rise in tax revenue and fee increases. General Fund spending totals $85.9 billion, a 6.1 %reduction from 201 O -1 1 . The budget also includes some $2.5 billion in mid -year "trigger" cuts that would be made if revenues fall short of projections. The package outlines three tiers of trigger cuts based on how much of the $4 billion in projected revenues materializes. The majority of trigger cuts would fall on education and social services programs. A week after Governor Brown signed the state budget; the Standard & Poor's Agency adjusted the state's ratings outlook from "negative" to "stable ". The ratings agency said the solutions in the 2011 -12 budget are "largely realistic and should clear a path" for the state to borrow cash in the short term to pay its bills. Despite the outlook improvement, California's general obligation debt rating remains at A -, lowest in the nation. The budget includes Governor Brown's proposed local government "realignment" plan, with a $1 .7 billion fund shift from redevelopment agencies to counties and a 1 .06 percentage point sales tax "swap" that redirects money to local governments instead of the state. Significantly, for water and wastewater agencies throughout the state, the approved budget package eliminates $24 million in General Fund support for the State Water Resources Control Board and replaces those General Fund dollars with higher fees. The fee increases include $1.4 million for the National Pollution Discharge Elimination System, $1 .8 million for the Irrigated Lands Regulatory Program (agricultural waiver program), $6.7 million for basin planning activities, $11 .5 million for Total Maximum Daily Load activities and $3.2 million for water rights. The package additionally eliminates $1 .23 million from the Department of Water Resources' budget for the Watermaster Program replacing the funding with fees. The Association of California Water Agencies (ACWA) and its member agencies, including East Valley Water District, voiced opposition against these additional fees to support the State Water Resources Control Board. ACWA and its member agencies had successfully fought off similar fee increases in previous years, originally proposed by Gov. Schwarzenegger. Unfortunately, the ongoing economic malaise, persistently high unemployment, a yawning budget deficit and the need for significant cuts all contributed to a feeling that every available option to balance the General Fund must be included. On October 1 O, State Controller John Chiang released his latest State Cash Update which revealed that the State's revenues for the month of September came in $301.6 million bellow the State budget projections. �t� "September's revenues alone do not guarantee that trigger cuts will be pulled," Chiang said. "But as the largest revenue month before December, these numbers do not paint a hopeful picture." After accounting for September revenues, total year -to date general fund revenues are now behind the budget's estimates by $705.5 million. The first year of the 2011 -12 Regular Session of the Legislature ended on September 9, 2011; the deadline for Governor Brown to act on legislation that reached his desk in the final two weeks of the session was October 9. A total of 2,719 bills were introduced by the Senate and Assembly, including legislation introduced into a special session called to address budget - related issues. Reeb Government Relations monitored or actively lobbied 93 measures on behalf of our clients. This year, Governor Brown considered the lowest number of bills (870) of any governor since the California Constitution was changed to disallow the pocket veto in 1966. Governor Brown vetoed a higher percentage in 2011 (14.36 %) than in any of his prior years as governor; his veto percentage is only slightly above the average for governors since 1967 (13.82 %)_ Governors Deukmejian and Schwarzenegger still rank first and second for the most bills vetoed in a year, 436 (1990) and 414 (2008) respectively. This year saw the fewest vetoed bills (125) since the recall year in 2003 (58). Legislation seeks Local Government Transparency and Accountability In 2010, salary abuses reported in the City of Bell spurred committee hearings and legislative proposals focused on increasing transparency and accountability in local government compensation, accounting and auditing practices. Many bills were held due to the lack of time remaining in the 201 O session to give due consideration to the myriad reform proposals_ This year, a number of bills inspired by the City of Bell scandal were introduced in the Legislature. EVWD supported some, opposed some, and remained neutral on most of these bills. A summary of some of the key measures is as follows: ■ AB 23 (Smyth) would require a member of a legislative body or the clerk to announce, prior to holding a meeting simultaneously or in serial order, during a meeting of a legislative body where the members constitute at least a quorum of the legislative body of the other meeting, how much compensation or stipend the members will receive for the second meeting. The District had a "watch" position on the bill. The bill was signed into law, by Governor Brown, on July 25. (Chapter No. 91 , Statutes of 201 1) ■ AB 187 (Cara) would allow the state auditor to establish a program to identify and audit any local government agency that the auditor deems to have a "high risk" for waste, fraud, abuse or mismanagement. The District had a "watch" position -4- on this bill. The bill passed both houses of the legislature and was signed into law on October 4. (Chapter 451, Statutes of 201 1) AB 392 (D- Alejo) —would require the legislative body of a local agency to post agenda and specified staff - generated reports that relate to items on the agenda on its Internet Website, failed the May 29 deadline pursuant to Rule 61 (a) (5) -last day for fiscal committees to hear and report to the floor bills introduced in their house. The District had an "oppose" position on the bill_ The bill had been amended to be narrowed somewhat, but still would have posed significant restrictions and costs on local agencies. AB 582 (Pan) —would require the legislative body of a local agency to publicly notice on two separate occasions a proposed compensation increase of more than 5% for a city manager, deputy city manager, county chief administrative officer, deputy chief administrative officer, or similar employees of special districts_ The bill failed the May 29 deadline pursuant to Rule 61 (a) (5) -last day for fiscal committees to hear and report to the floor bills introduced in their house. The District had an "oppose" position on this bill. District Remains Active on the Legislative Front The District actively monitored or engaged in direct lobbying on over 34 bills this year. will highlight only a handful of bills below on which the District was active. Many of the bills that I will highlight below are now 2 -year bills_ 2011 is the first year of the 2011 -12 legislative session; therefore, bills that failed to meet a legislative deadline have become 2 -year bills and can be taken up for consideration beginning in January 2012. Public works contracts: relief for bidders AB 457 by Assemblymember Don Wagner (R- Irvine) would award attorney's fees to a public works contract bidder if that bidder is successful in challenging an award based on a determination that errors or omissions occurred in the intended or actual award of the contract to another bidder_ The bill is sponsored by the Engineering Contractors' Association, California Fence Contractors' Association, California Chapter of the American Fence Association, Marin Builders' Association and the Flasher Barricade Association, who state that "the intent of this legislation is to make public agencies think more seriously about complying with existing bidding laws." Under current law, a public agency is required to make a good faith determination that a low bid is responsive and the bidder is responsible, and then a contract can be awarded. The next lowest bidder may challenge the bid award, but existing law provides that the contract may be entered into and performance begun while the challenge is pending. Current law provides that a contractor who prevails against a public agency can only receive their costs for bidding on the project. Sponsors of AB 457 argued that there is little incentive for a contractor to pay an attorney to challenge a public agency since the resulting legal costs are paid for by the contractor and nothing is gained. -5- Sponsors argued that public agencies know there are insignificant repercussions for violating competitive bidding laws, thus they continue to violate such laws with impunity. EVWD opposed AB 457 for various reasons. First, existing law provides a remedy when the awarding of a contract is deemed invalid as any party not awarded the contract can challenge the process. Thus, as written, AB 457 would encourage a multitude of allegedly aggrieved parties to file suit, hoping to at least get their attorneys' fees (a form of punishment to the public agency) as they also hope to revive their bids. That is not a wise or cost - appropriate approach, particularly when it might encourage frivolous claims. Second, the bill would not require the challenger to show intent, just that there is a "defect" in the process. As a result, public agencies might be willing to proceed with a contract if the award is challenged so as to avoid the prospect of having to pay the challenger's fees and costs. An agency would simply await the outcome of the challenge. Projects would likely be held up unnecessarily due to the challenge, which could in turn increase the cost due to bids going stale. Even though current law gives such actions priority "over all other civil actions," the delay would still likely take months. Finally, the award of attorneys' fees is the exception, not the norm. The legislation would contravene Government Code Section 815.6, which limits a right to damages for breach of a mandatory duty (which is the basis for this type of claim), and bars claims for attorneys' fees in such circumstances. This legislation also would impose such an award without a finding of negligence or other active misconduct by the public agency, which again is contrary to the limitations imposed by Section 815.6. The bill was first scheduled for hearing in the Assembly Business, Professions and Consumer Protection (BP &CP) Committee on March 22. The BP &CP committee bill analysis recommended amendments to the bill supported by opponents that would have allowed public entities that successfully defend the intended or actual award of a contract to recover costs and attorney's fees incurred in defending the contract challenge. According to the Committee analysis, the recommended amendment would be "reciprocal in nature and mirror the provisions of AB 457 on behalf of taxpayers and public entities reducing the number of frivolous challenges to contract awards by bidders who are either upset with losing a contract award despite a public entity's compliance with the competitive bidding process." Assembly Member Wagner requested the committee hearing to be rescheduled to May 5 and, in an effort to satisfy the committee amendment recommendations, amended the bill to allow attorney's fees and costs to be awarded to the public entity, if the court finds that the challenge by the bidder was clearly frivolous, clearly vexatious, or brought solely for purposes of harassment. The May 5 committee hearing was cancelled at the request of Assemblymember Wagner after the committee bill analysis stated that the bill amendments did not go far enough in addressing the committee's concerns, and requested that the committee recommended amendments be adopted. AB 457 failed to meet the May 6 deadline pursuant to Rule 61(a) (2) -- last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their house. The bill is now a 2 -year bill. Sacramento -San Joaquin Delta: Peripheral Canal AB 550 by Assemblymember Alyson Huber (D -EI Dorado Hills) mirrors provisions contained in last year's AB 1594 (Huber), which the District opposed. AB 1594 sought to reverse key provisions approved in 2009 by the legislature's historic water package by turning decisions on needed conveyance changes into a political process. AB 1594 died in the Assembly after it failed passage in the first policy committee_ AB 550 would prohibit the construction of a Delta conveyance facility unless expressly authorized by the Legislature. Prior to the enactment of a statute authorizing the construction of a peripheral canal, the bill would require the Legislative Analyst's Office (LAO) to complete an economic feasibility analysis_ The bill would also prohibit the construction and operation of a peripheral canal from diminishing or negatively affecting the water supplies, water rights or quality of water for water users within the Sacramento -San Joaquin Delta watershed, or imposing any new burdens on infrastructure within, or financial burdens on persons residing in, the Delta or the Delta watershed. EVWD opposed AB 550 as it would reopen a key element of the delicately crafted compromise reached in the November 2009 Delta Water Package. EVWD argued that AB 550 would interject the Legislature into the intricacies of designing a new conveyance system in the Delta. A new Delta canal or tunnel will likely involve multiple intakes, a forebay and other infrastructure. The Legislature has no expertise in designing roadways, electrical conveyance or other vital pieces of state infrastructure and it would be a dangerous precedent to involve the Legislature in water infrastructure design. The many layers of protections for the Delta contained in the November 2009 legislative package will help guide future conveyance decisions to achieve the co -equal goals. The Delta Water Package authorized the Bay Delta Conservation Plan (BDCP) to analyze conveyance alternatives as a part of a comprehensive 50 -year strategy of Delta ecosystem and water system improvements; an analysis that is currently taking place. This planning process will include a sophisticated risk analysis of conveyance alternatives. The legislative package also included numerous new requirements for the alternatives analysis process, such as a mandate to review a full range of conveyance alternatives. The BDCP can only automatically qualify under the new Delta Plan being developed by the Delta Stewardship Council if it complies with the highest environmental standard in California, the Natural Communities Conservation Planning Act. Prior to authorizing a change in place of use for the new conveyance system, the State Water Resources Control Board must consider appropriate flow criteria for operation of the facility based on a science -based adaptive management program. The future conveyance improvements adopted by BDCP will have undergone one of most exhaustive and rigorous processes for any infrastructure project in the nation, including an analysis of local economic impacts as mandated under the California Environmental -7- Quality Act. Mandating a redundant review by the Legislative Analyst's Office would be redundant, to say the least. AB 550 was referred to the Assembly Water, Parks and Wildlife committee and the Assembly Appropriations committee; however, it never received a hearing. The bill failed to meet the May 13 deadline pursuant to Rule 61 (a)(3) —the last day for policy committees to hear and report to the floor nonfiscal bills introduced in their house —and it is currently a 2 -year bill. State Water Resources Development System: Delta Corridors Plan: feasibility study AB 627 by Assemblymember Bill Berryhill (R- Stockton) would require the Department of Water Resources (DWR) to undertake an expedited evaluation and feasibility study with regard to the implementation of a specified Delta Corridors Plan as part of the State Water Resources Development System (SWRDS). The bill would require DWR to consult with the Department of Fish and Game (DFG) to study specified impacts and benefits of the Delta Corridors Plan and to include in the study an assessment of the incorporation of the Two -Gates Fish Protection Demonstration Project managed by the United States Bureau of Reclamation into the Delta Corridors Plan. DWR would be required to prepare and submit to the Legislature, on or before January 1 , 2013, a report that includes its feasibility findings. If DWR determines the implementation of the plan is feasible, the department would be required to include recommendations with regard to specific facilities to be constructed, and to identify potential funding sources, for the purposes of implementing the plan. AB 627 was opposed by a number of water agencies, including the East Valley Water District and the Association of California Water Agencies, which claimed the bill duplicates existing legal requirements and, therefore is unnecessary and inappropriately favors one specific alternative plan. Supporters include several local governments, water agencies and agricultural organizations in the Delta that contend it is important that DWR study the Delta Corridors Plan before deciding on a plan for the Delta, especially a plan that includes a peripheral canal. Under current law (SBX7 1 of 2009) the Delta Stewardship Council (DSC) is to adopt the BDCP only if it has considered, among other things, "a reasonable range of Delta conveyance alternatives, including through - Delta, dual conveyance, and isolated conveyance alternatives and including further capacity and design options of a lined canal, an unlined canal, and pipelines." In November 2009, South Delta Water Agency (SDWA) released a report entitled "The Delta Corridors Plan and Its Potential Benefits" which describe a particular type of through -Delta alternative that isolates San Joaquin River outflo�nts from Sacramento River water by a series of barriers, gates, and fish screens. BDCP previously considered, and has since discarded, a plan similar to "Delta Corridors" focusing instead on a tunnel -type "canal" conveyance as part of its "preferred project alternative" for Delta water conveyance. Supporters of this bill continue to press for consideration of the "Delta Corridors Plan," claiming it would better achieve the coequal Delta goals than would acanal -type system, and would do so at lower cost. Based upon substantial science and engineering analysis, EVWD does not believe the Delta Corridors Plan will solve the water quality, fishery and water supply problems associated with the current through -Delta infrastructure. For example, the District believes water supplies will remain vulnerable to seismic liquefaction of Delta levees and subsequent salinity intrusion associated with sea -level rise_ Optimal ecosystem functions are not achieved under the 2007 Delta Corridors Plan due to a lack of food web diversity and reduced restoration opportunities in the south Delta. Finally, the District believes the Corridors Plan would cause highly controversial navigational obstructions for boaters and be relatively expensive for the limited benefits. In addition, the lead agencies preparing the environmental review document for the BDCP are working towards identifying a full range of reasonable conveyance alternatives to the proposed BDCP. One of the six alternatives being evaluated includes an analysis of separate corridors with screened intakes at the Delta Cross Channel and Georgians Slough, an alternative that will focus only on modifications to the existing through -Delta system without any new conveyance, just as the 2007 Delta Corridors Plan proposed. The Appropriations Committee analysis estimated a onetime cost to DWR of $750,000 for conducting the study and a onetime cost to the DFG of an unknown amount, but potentially in the hundreds of thousands of dollars to support the work of DWR_ AB 627 declares that it is the intent of the Legislature to appropriate money to DWR to pay the costs of the study. AB 627 was sent to the Appropriations Suspense file on May 1 1 , 201 1 where it was held under submission_ The bill failed to meet the May 27 deadline pursuant to Joint Rules 61 (a) (5) -the last day for bills to be reported out of fiscal committees —and it is now a 2 year bill. This bill is similar to AB 1797 (Bill Berryhill, 2010), which was also held by the Appropriations committee last year. Local public employee organizations: impasse procedures AB 646, by Assemblymember Toni Atkins (D -San Diego), would allow an employee organization, if a mediator is unable to effect settlement of a controversy within 30 days of his or her appointment, to request that the matter be submitted to afact- finding panel. The bill would further require, if the dispute is not settled within 30 days, the fact - finding panel to make findings of fact and recommend terms of settlement, for advisory purposes only_ The bill would require that these findings and recommendations be first issued to the parties and that the public agency makes them publicly available within 1 O days after their receipt. The bill would require that all costs associated with the fact - finding panel be shared equally by the public agency and employee organization. AB 646 would prohibit a public agency from implementing its last, best, and final offer until at least 1 O days after the fact - finders' written findings of fact and recommended terms of settlement have been submitted to the parties and the agency has held a public hearing regarding the impasse. �Z EVWD opposed AB 646 in the belief that it would impose burdensome and cumbersome new labor negotiation procedures that would interfere with the fiduciary responsibility of the governing body of a public agency water utility to its customers. While the timely and successful completion of labor negotiations is desirable, a governing body must retain the option to impose its last, best and final offer in order to provide essential public services like drinking water, wastewater treatment and recycled water in an efficient and cost effective manner. It is the District's belief that adding multiple and lengthy new labor negotiation processes is not in the public interest. Public agencies are different from private corporations; the California Public Records Act and other sunshine laws make for a far greater level playing field. The financial position of a local agency is well known through public budgets and audited financial statements. Adding to mediation and fact - finding steps runs counter to the goal of a timely and successful completion of labor negotiations. The District asked: why would either side compromise with the knowledge that further opportunities to secure concessions lie down the road? Proponents of AB 646 argue that some unidentified local agencies do not bargain in good faith; therefore, it is necessary to add fact - finding and formal impasse procedures. EVWD disagrees and argues that if a local agency is not negotiating in good faith, an employee organization may seek remedies from the Public Employee Relations Board. AB 646 passed both houses of the Legislature and it was sent to the Governor's desk on September 14. Governor Brown signed AB 646 into law on October 9, 2011. State water policy: regional water management planning. AB 685, by Assemblymember Eng (D- Monterey park), would have declared that it is the policy of the state that every human being has the right to clean, affordable, and accessible water. The bill would require, on and after January 1 , 2012, all relevant state agencies implement this state policy upon revising existing, and upon adopting or establishing new, policies, regulations, and grant criteria. The Association of California Water Agencies (ACWA), EVWD and other water service providers opposed AB 685, arguing that the bill language could lead to a requirement that water agencies provide water service without consideration to the reasonable cost of providing service, thereby creating inequitable and disproportionate water rates in violation of the California Constitution. Other concerns included extension of water service and potential challenges to long -held water rights allocations. Currently, a retail water provider can discontinue water service when a customer has not paid the water bill in a timely manner. Under AB 685, a customer has a right to water. If the water supplier were not allowed to stop service because a customer could not afford water service, other customers would have to subsidize service for those who cannot afford service. This scenario could have a devastating impact on the viability of water agencies across the state and conceivably have a greater impact on those agencies which have a large low- income population. At the very least, it could mean -10- higher water bills for those who could "afford" to pay. And at worst, areas with high low income populations would have suppliers who wouldn't be able to provide adequate service or plan for future infrastructure needs. The bill is similar to AB 1242 (Ruskin, 2009) which the District also opposed. AB 1242 was vetoed by Governor Schwarzenegger, who stated: "Whi /e providing safe drinking water is fundamental to our laws and to human health, this bill would not enhance our current efforts in achieving this goal... Our most pressing barrier in achieving this goal is not desire, it is funding." AB 685 was sent to the Senate Appropriations Committee Suspense File, on August 15, where it was held under submission. The bill failed to meet the August 29 legislative deadline for bills to be reported out of fiscal committees and it is now a 2 -year bill. Public Water Systems: Notice of Drinking Water Violations Under current law, when a community water system exceeds maximum contaminant levels, state and federal laws trigger a number of requirements. In particular, residents must be notified within 30 days regarding the levels of the given contaminant, potential dangers of consuming the contaminated water, and a status report of the steps the water system is taking to install treatment, find alternative sources of water, or otherwise comply with the law. For tier 1 notices, public water systems are required to provide notices within 24 hours after learning of contaminant levels that may pose a potential risk in human health. Last year, Assembly Member Manuel Perez (D- Coachella) introduced legislation that would require that a public notice given by a public water system be provided in English and in the language spoken by any non - English- speaking group that exceeds 1,000 residents, or that exceeds 1 O% of residents in the community served, whichever is less. The bill, AB 2669, required the public notice to contain prescribed public water system and department contact information where residents could receive assistance in the appropriate language. EVWD opposed the bill and argued that the provisions of AB 2669 were inadequate for providing vital information in a timely manner. Even if the basic information of a public notice were to be translated in advance, the description of the problem and the area affected, which is reviewed by the California Department of Public Health and included in the notices, cannot be translated in advance. By the way the law is written the district would either Have to delay issuing the notice by several hours while the notice is being translated or the notice is going to go out without specific information which will put the district out of compliance with the law. Although Assembly Member Perez proposed amendments to narrow the scope of AB 2669 late in the session last year, the district along with others in opposition to the legislation expressed reservations over moving forward with the bill six days prior to the end of session which would have given them little time to produce a workable legislation. On the last day of session, Assembly Member Perez agreed to place the bill - 11 - on the Senate Inactive File to allow water agencies opposed to the legislation the opportunity to work with him and his sponsors to write aconsensus -based measure. The bill was reintroduced this year as AB 938 with the same content as AB 2669. EVWD continued to oppose the legislation, arguing that the existing CDPH regulations were sufficient to protect the interest of non - English speaking groups. The District believed that the requirement to provide the entirety of each written public notice in Spanish and possibly other languages (beyond a statement regarding the importance of the notice) would unnecessarily increase costs for public water systems. The District also was concerned that the requirement for the entirety of Tier 1 written notices to be multilingual (or at a minimum in English and Spanish) could delay written notification of potential health threats due to the consumption of contaminated water. However, the District indicated that it would be willing to remove opposition if AB 938 was amended to codify current regulations given the concerns expressed last year by Assembly Member Perez that regulatory changes may weaken notice provisions. On July 1 , the bill was amended to change the community to receive a specified notice to be anon- English- speaking group that speaks a language other than Spanish that exceeds 1 ,000 residents but is less than 1 O% of the persons served by the public water system. The amendments also expanded the presumption of compliance provisions, to the following: After Ju /y 9, 2092, it sha /l be presumed that the public water system has determined the appropriate languages for notification, if the pub /ic water system has made a reasonable attempt to utilize the data avai /able through the American Community Survey of the United States Census Bureau to identify the non - English speaking groups that reside in a city, county, or city and county that encompasses the service area of the public water system. After July 9, 2092, it shat/ be presumed that the notice has been correct /y trans /ated if the pub /ic water system has made areasonab /e attempt to obtain either in -house or contracted -for trans /ation services for providing a translated copy of the notice or assistance in the appropriate languages and the translated copy of the notice or assistance has been provided. After Ju /y 9, 2092, if the public water system has made areasonab /e attempt to have the notice translated into the appropriate languages, it sha /l be presumed that a notice trans /ated into languages other than Spanish has been adequate /y provided if it contains trans /ations in the appropriate languages of a// of the following: Identification of the contaminant; Information on the hea /th effects associated with the presence of the contaminant in drinking water at a level in excess of the primary drinking water standard; Actions that members of the pub /ic shou /d take to protect their hea /th. Based on these amendments, EVWD moved to a watch position on the bill. The bill passed the Assembly floor with a 55 to 22 vote and the Senate floor with a 29 to 8 vote. Governor Brown signed AB 938 into law on October 7, 2011 . -12- California Water Resources Investment Act of 201 1 SB 34, by Senator Joe Simitian (D -Palo Alto), would enact the California Water Resources Investment Act of 201 1 to finance a water resources investment program (program). To finance the program, the bill would impose on each retail water supplier in the state an annual charge based on the volume of water provided in its service area for nonagricultural uses and an annual charge based on each acre of land within its service area that is irrigated for agricultural purposes. SB 34 would require the revenues of the charges collected for purposes of the program to be deposited in the California Water Resources Investment Fund (fund) and specify the purposes for which the money may be expended_ The bill would establish a State Investment Account and a number of regional investment accounts within the fund, and would require 50% of the moneys deposited in the fund to be transferred to the State Investment Account and 50% of the moneys deposited in the fund to be transferred to the regional investment accounts based on the amount of charges collected within each funding region. The bill would require the moneys in each of the regional investment accounts to be available, upon appropriation by the Legislature, for purposes of providing funding for public benefits of water - related projects and programs. The premise behind SB 34 is that existing State revenue streams have proven insufficient to invest in long -term planning and efficient management of the statewide water system, expanding access to necessary water services for underserved and low - income communities, ecosystem improvements, management of water - related risks and major public emergencies, and water system changes to improve recreation opportunities. As the state's population continues to grow, the proponents of the bill argue, it becomes more important to have a stable funding source to meet future water demand, improve water quality and sustain the environment. EVWD opposed SB 34 for several reasons. First and foremost, the District believes the bill violates the beneficiary pays principle that the Legislature has mandated across a number of statutory enactments_ Forcing water customers in one jurisdiction to pay into a fund to pay for projects elsewhere, including environmental and recreation projects for which those customers receive no direct or indirect benefit, runs counter to the beneficiary pays principle. The bill also violates the polluter -pays principle as no current water users, for example, are responsible for legacy pollution such as mercury contamination. The entire bill is inconsistent on its face, having explained `beneficiary pays' and `polluter pays' principles in paragraph (1) of subdivision (c) of Section 87010, and then establishing a fee on water users that has no relationship to the projects or programs that would be paid for under either the state or regional accounts. The State of California has increasingly relied on general obligation (GO) bonds to fund its water resources related investments. Since 1996, voters have approved over $14 billion in GO bonds for water - related purposes, and the Legislature recently placed the $11 .14 billion Safe, Clean, and Reliable Drinking Water Supply Act of 2012 on the November 2012 ballot. The Legislative Analyst Office (LAO), Public Policy Institute of California (PPIC), and others have commented on the unreliability and -13- inappropriateness of relying on GO bonds to fund the public benefits of water related projects and programs. Now, many in the Legislature and the State Treasurer are calling for lower GO bond issuances — primarily due to the increasing impact that debt service payments have on the General Fund. Although the percentage of debt service payments compared to total General Fund savings has been generally below 7 percent, many argue that the state can no longer afford to issue GO bonds to finance infrastructure_ SB 34 proposes a public goods charge to pay the state share of matching funds for future IRWMP projects and programs. Of course, the simplest approach to funding regional projects would be to leave regional project funding to local agencies and those who directly benefit. The Office of the Legislative Analyst weighed in on the issue of water resources infrastructure funding on March 22, 2011, saying that "We find that an assessment levied on water retailers and administered by the state Board of Equalization is the most feasible funding option for apublic- benefit -type charge in California." The LAO also recommends that the Legislature define the activities that are appropriately supported with state public funding and which are not supported. The LAO notes that current activities for which the Legislature deems appropriate for state support are paid for from the General Fund or State GO bonds. The LAO, however, does not argue that this approach is unsustainable. SB 34 does not define activities that are appropriately supported by state funding. Rather, it taxes local water customers to provide revenue to the state so it can fund every conceivable water - related project throughout the state. The State General Fund should pay for public benefits based on existing revenue sources, whether or not fees and taxes paid into the General Fund are increased. Those projects that benefit a specific set of beneficiaries should be paid by those beneficiaries; the State does not need to tax local water customers in order to return some unknown percentage of those same funds in the form of regional grants. EVWD believes the State of California should resolve the ongoing General Fund structural deficit and establish clear spending priorities before searching for new sources of revenue. The addition of a water resources public goods charge will not solve the State General Fund structural deficit and it will not force the Governor and the Legislature to make difficult decisions regarding spending priorities. SB 34 passed the Senate Governance and Finance Committee with a 5 -4 vote and was referred to the Senate Appropriations Committee for hearing. The bill was never heard in the Appropriations Committee and failed to meet the July 8 deadline pursuant to Joint Rule 61 (a) (1 O) –Last day for policy committees to meet and report bills_ SB 34 is currently a 2 -year bill. Senator Simitian stated that the bill was intended to be a "vehicle for discussion" and that he did not have intentions on moving the bill passed the Senate Appropriations committee this year. SB 34 was accompanied by SB 571, by Senator Lois Wolk (D- Davis) which sought to create a process for funding the public benefits of water related projects and programs similar to that used in transportation. SB 571 would have made a number of changes to -14- the California Water Commission, including establishing it as a separate agency outside of the Department of Water Resources and assigning it new responsibilities for identifying state and regional priorities for funding. East Valley Water District opposed this bill as well. The bill passed the Senate Natural Resources and Water committee with a 5 -3 vote and was referred to the Senate Appropriations committee for hearing on May 2. The bills hearing in the Appropriations Committee was canceled at the request of Senator Wolk. The bill failed to meet the May 27 deadline pursuant to Joint Rule 61 (a) (5) —last day for fiscal committees to hear and report to the floor bills introduced in their house. SB 571 is currently a 2 -year bill. Sacramento -San Joaquin Delta: Bay Delta Conservation Plan EVWD opposed SB 200 which sought to create a series of new and likely insurmountable obstacles for the Department of Water Resources (DWR) to construct "the new Delta conveyance facility" by requiring the completion of numerous actions, many of which are not wholly within DWR's control and that are unlikely to be completed. SB 200 as introduced by Senator Lois Wolk (D- Davis) would prohibit the construction of anew Delta conveyance facility unless specified conditions are met, including the adoption of an agreement by DWR and the Department of Fish and Game (DF &G) specifying staging of the construction of the conveyance facility, with the first stage being new fish screens. The bill would require DWR to enter into an agreement with DGF, prior to the construction of a Delta conveyance facility, "for the protection and enhancement of fish and wildlife" that (1) restores adult populations of "fish and wildlife" in San Francisco Bay and Suisun Marsh to "the average annual abundance from 1922 through 1967. The latter provision would require the projects alone to atone for all of ,� the impacts, man -made or natural, related to project operations or not, on fish and wildlife, and the number of species that must be returned to 1922 -67 levels is unlimited. The agreement must include "limitations on exports and diversions to storage that are necessary to restoring and maintaining those levels" and (2) "the realization of the potential of the project for increasing resources" above those levels, consistent with contracts for water delivery_ "Plans and agreements to protect the beneficial uses of the Delta are in place." There is no detail on who must make these plans; who the parties are to any agreements; or who determines that a sufficient number of plans or agreements exist or that they are sufficient to "protect beneficial uses of the Delta_" Such plans and agreements are potentially unlimited, but the bill does specifically mention some dozen examples that must be included. EVWD argued that SB 200 is not a workable platform to address Delta policy. The bill ignores key environmental protections that have come into place in the past generation, such as the California Endangered Species Act and the Natural Communities Conservation Planning Act. And it disregards the Bay Delta Conservation Plan (BDCP), a historic planning process now in its fourth year that is crafting a comprehensive strategy with the goal of recovering listed species while modernizing the Delta water conveyance system. The original SB 200 from 1980 authorized a new water supply -15- canal in the Delta while also authorizing other, unrelated water facilities. This bill mandates that 12 unrelated water supply facilities, some of which have not been studied for years, be advanced first through "plans and agreements" prior to construction of new Delta conveyance_ Much has changed since this bill first appeared in 1981 -82. The pending development and adoption of the Delta Plan and the BDCP, which hopefully pave the way for the construction of delta conveyance improvements, are now recognized as the path forward to addressing water supply reliability and ecosystem restoration goals in the Delta. Overlaying the many mandates of SB 200 onto this existing process is not in the interest of the Delta environment or the California economy. Furthermore, SB 200 require DWR to enter into permanent and enforceable contracts with specified Delta agencies for purposes of recognizing the right of users to make use of the waters of the Delta and establishing criteria for minimum water quality in the Delta before water may be exported from the Delta, essentially giving veto power over Delta conveyance improvements to any of the in -Delta water agencies. The bill allows a single agency to prevent construction of any conveyance proposal by simply refusing to sign the "permanent and enforceable contracts" with DWR mandated in the bill. This ceding of state authority is inappropriate and dangerous. The bill would require differences between the state and the Delta agencies to be resolved by arbitration if contracts have not been executed by January 1, 2012. The District argued that SB 200 in effect would replace the Legislature's historic Delta /water management package from 2009 with a gauntlet of obstacles that would promote gridlock. The existing efforts to address the crisis in the Delta need legislative support in order to place the ecosystem and water systems on sustainable paths for the years ahead. The bill which was scheduled for hearing in the Senate Natural Resources and Water Committee on April 26, was gutted and amended on March 24 to instead add requirements for state agencies in implementing the BDCP. The bill amendments would add the following requirements to the Water Code: (1) the action shall not result in significant unmitigated negative impacts to another entity or region. Specifically, any impact that would negatively affect the water right, water supply, water quality, ecosystem function, flood risk, agricultural resources, infrastructure, regulatory responsibility, or the economy of another entity or region without appropriate full mitigation; (2) The action shall have a viable funding source for the entire period proposed for the implementation of the action. The funding source shall be affordable for the ratepayers and contractors supplying the funding, and shall be reasonably likely to be provided by those ratepayers and contractors through secured funding mechanisms; (3) Funding for the action shall be consistent with the beneficiary pays principle. Specifically, "beneficiary pays principle" means that only those identified as beneficiaries of the BDCP shall be responsible for providing funding for BDCP; (4) The action shall be consistent with protecting and maintaining public trust resources in the Delta. The action shall be consistent with maintaining flows within the Delta and outflows from the Delta that are necessary to maintain the public trust resources of the Delta, the Suisun Marsh, and the San Francisco Bay. Any action that -16- results in reduced flow within the Delta or outflow from the Delta shall be scientifically justified and consistent with maintaining the existing statewide water rights priority system, area of origin protections, and beneficial uses of water within the Delta; (5) If the action requires additional waterflows in order to mitigate for the action or meet conditions of a permit under the BDCP, the beneficiaries of the BDCP or the action shall be solely responsible for identifying, developing, funding, and supplying those waterflows. No other water rights holder or legal user of water shall be responsible for supplying flows that may be necessary to permit or mitigate for actions taken to comply with the BDCP, except for those water rights holders and parties that are beneficiaries of the BDCP; (6) The action shall be developed and implemented with the input of all affected local governments and the public; (7) The action shall be implemented consistent with existing efforts to manage wildlife within the Delta, Suisun Marsh, and the San Francisco Bay, including adopted plans for management of the Yoto Wildlife Area, the Suisun Marsh Conservation District, the San Francisco Bay Plan, and the federal Migratory Bird Treaty Act (16 U.S.C_ Sec.703 et seq.), and applicable local natural community conservation plans; and (8) The action shall not violate any legal contract to maintain water quality within the Delta, including but not limited to, the contract between the department and the North Delta Water Agency, dated January 28, 1981, and the contract between the department and the City of Antioch, dated April 11, 1968. EVWD continued to oppose SB 200 as amended_ The District believes that by codifying the "beneficiary pays principal" to mean only those identified as beneficiaries of the BDCP, the bill ignores the fact that some actions taken pursuant to the BDCP process will result in substantial public benefits. The District believes that costs of these public benefits should be borne by the public at large, not by the ratepayers of BDCP signatories. The Senate Natural Resources &Water Committee hearing was cancelled at the request of Senator Wolk. No further action was taken on the bill. The bill failed to meet the May 6 deadline pursuant to Rule 61(a)(2) —Last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their house —and it is now a 2- year bill. SB 224 (Pavley) Public Contracts Department of Water Resources Current law provides that contracts entered into by any state agency for goods, services, or other specified activities, whether awarded through competitive bidding or not, are void unless and until approved by the Department of General Services (DGS), and approval shat) be denied if the contract does not meet the required specifications of the bidding process. Current law requires state agencies to secure at least 3 competitive bids for each contract. Current law exempts certain transactions and contracts from that law, as specified. SB 224, by Senator Fran Pavley (D- Agoura Hills) exempts specified contracts entered into by the Department of Water Resources (DWR) from competitive bidding Isr� requirements and DGS approval. Specifically, SB 224 exempts from competitive bidding requirements DWR contracts for the acquisition of specialized equipment for State Water Resources Development System (SWRDS) facilities that are in excess of $25,000 and requires DWR to collaborate with DGS to establish conditions where competitive bidding exemptions apply in order to expedite operations and maintenance work to reduce the risk of the loss of water or power to the SWRDS. The bill exempts from approval by DGS, contracts for the acquisition, sale, or transmission of power, or for services to facilitate such activities under the Central Valley Project (CVP) or the California Resources Development Bond Act. As well as, exempts service contracts for the operation, maintenance, repair, or replacement of specialized equipment at SWRDS facilities under the CVP or California Water Plan from competitive bidding requirements and DGS approval. (For an alternative bill description, please look at bill language) EVWD supported SB 224, along with State Water Contractors. The District argued that by providing DWR with an exception from DGS contract review, SB 224 eliminated costly contract delays and unnecessary bureaucratic review. The energy marketplace can be very volatile and energy rates can change rapidly. Delay in the approval of contracts by DGS can affect DWR's ability to procure electricity in a timely manner, thus driving up energy costs that ultimately result in increased water costs for business and consumers. This situation has had costly, multimillion dollar consequences for the SWP and the 29 state water contractors who pay all SWP - related expenses. Furthermore, DGS charges the contracting department for DGS's time in the reviewing process of the contract. The DGS fee for contracts for last fiscal year was 1.6% of the value of the contract. Each year, DWR enters into hundreds of contracts, often valued in the millions of dollars. Despite having an extensive contracting operation staffed by dozens of experienced attorneys and contracting specialists, DWR still was required to have many of its contracts reviewed and approved by DGS. The bill was signed into law by Governor Brown on October 8, 2011. Public Works Proiects� Contract Retention SB 293 would reduce the amount of money that local public agencies can withhold from a contractor prior to completion of a public works project. These retention proceeds are currently required to be not less than five percent. The widespread practice among local public entities is to retain 1 O percent. Under the bill, retention could not exceed five percent. This provision would sunset in 2016_ The bill is supported by contractors and subcontractors. It is opposed by many local public agencies who argue that the ability to retain construction funds is an important control to ensure that contractors perform their work well, on time and on budget. EVWD is opposed to SB 293. Under current law, local agencies must accept the lowest responsible bidder when awarding contracts. Because local agencies are required to contract with the lowest bidder, sometimes less qualified contractors, who are more likely to create issues of costly change orders and project abandonment, may under -bid more qualified contractors. The retention flexibility provided in existing law allows -18- agencies to do a project risk assessment and determine retention provisions that are appropriate to the level of risk assessed for a project. Contract retention ensures that public projects are delivered on time and on budget, that contractors complete all contract requirements including the small unprofitable punch - list items, that there are sufficient funds to correct defective work if a contractor fails to do so and /or to pay workers in the event that contractors fail to pay prevailing wage properly. The widespread highly variable practice among local public entities is to retain 1 O% of the payment for contracts. Local agencies commonly reduce retention to 5% at the half -way point of project completion, if adequate progress is being made and the contractor is acting in good faith_ The District argued that by reducing the amount of money that local public agencies can withhold from a contractor prior to completion of the job, SB 293 imposes aone- size- fits -all policy, removing local agencies flexibility to appropriately manage risk on aproject -by- project basis. EVWD is concerned that when a contractor does not have the proper incentive to complete a public works project, the local agency may be left without sufficient funds and would be forced to seek new funding to complete the project. During this difficult economic and budgetary time, public agencies, taxpayers and ratepayers cannot afford failures or disingenuous commitments on the part of general contractors. This bill compromises the public agency to the benefit of the contractor. Several bills with similar proposed retention limitations have been vetoed over the past: AB 806 (Keeley) of 1999; AB 940 (Miller) of 1997; and AB 1949 (Conroy) of 1996. And more recently, SB 802 (Leno) of 2009, which limited retention for 5 %, was vetoed by Governor Schwarzenegger, who expressed concern that such a limit would harm public agencies' ability to complete project on time and within budget. Nonetheless, Governor Jerry Brown departed from his predecessors and signed SB 293 into law on October 9, 2011 . Intec7rated Regional Water Management Plans: contents SB 834, as introduced by Senator Lois Wolk, required integrated regional water management plans (IRWMP) to demonstrate the manner in which it complies with a new state policy to reduce water reliance in the Delta watershed_ EVWD took an "oppose unless amended" position to the bill, objecting to provisions in the bill that would force compliance with one state policy as against all others when developing a IRWMP, which under existing law should ensure the availability of sufficient supplies to meet the state's agricultural, domestic, industrial, and environmental needs. Reeb Government Relations sought amendments to the bill on behalf of its clients that require a region that depends on water from the Delta watershed to include in an IRWMP projects and programs that improve regional self - reliance for water through investments in water use efficiency, water recycling, advance water technologies, local and regional water supply projects, and improved regional coordination of local and regional water supply efforts. "This amendment would add an additional essential -19- element for IRWMP for a region that relies on water supply from the Delta watershed," said Reeb. "It would not, however, require a plan to demonstrate compliance with state policy to reduce reliance on the Delta, which could be interpreted by the Department of Water Resources (DWR) to limit export areas to receiving state funding for only water use efficiency or water recycling projects in their IRWMPs. It's also a bit of an affront to Federal and State project water contractors that have paid for a contractual entitlement to water for decades to now turn away from receiving that water, but continuing to pay the full fixed costs of the projects." Bob Reeb convinced the ACWA State Legislative Committee to seek the amendments as well, but the Association subsequently removed its opposition when it failed to achieve more than minor amendments. Fortunately, DWR responded to entreaties by Reeb to engage on the legislation and the Department ultimately concurred with the concerns stated by the EVWD about mandating compliance with one state policy in what has heretofore been a voluntary, collaborative regional planning approach; and received approval from the Governor's office to express opposition to SB 834 absent amendments similar to those sought by the District. On August 25, Senator Wolk's office took amendments to the bill that were similar to those requested by Reeb and which satisfied the District's concern with the legislation. Based on those amendments the District moved to a "Watch" position on the bill. SB 834 passed both houses of the legislature. SB 834 was vetoed by the Governor on October 2, of which he stated: "l am returning Senate Bi /l 834 without my signature because / do not be /ieve it adds anything to current /aw. " EVWD an Effective Advocate on Behalf of its Taxnayers and Customers This completes the fourth year of a commitment on the part of the EVWD Board of Directors to aggressively pursue advocacy efforts in the State Capitol relying on Reeb Government Relations to be its voice. Looking ahead to next year, 20 Senate seats and 80 Assembly seats will be up for election in districts newly -drawn by the California Citizens Redistricting Commission. Legislative Democrats lack two additional seats in each house in order to achieve atwo- thirds super majority status, which is significant in terms of approving taxes and fees, assuming every Democrat could be persuaded to support such increases or new enactments. Locally, Assembly Member Wilmer Amina Carter will complete her three terms in office and her open seat will be filled with a new legislator. Senator Bob Dutton, the current Republican Leader, also will complete his service in the upper house. The November General Election will feature atop -two system, under which the top two vote recipients, regardless of party affiliation, will appear on the ballot. Districts will larger -20- Republican or Democratic party registration advantages could see two members from the same party facing off. The $11 .14 billion water general obligation bond is slated to appear on the November 2012 ballot, but its fate remains unclear due to the moribund state economy and the continuing challenges facing the State General Fund. Governor Brown already has indicated his intent to reopen the debate on the water bond, signaling a desire to reduce the size of the bond as well as to change the makeup of the programs and projects that would be funded under the bond. Moving the bond to a future ballot also is a possibility. Any changes to the status quo would require atwo- thirds vote in each legislative chamber and the signature of the Governor. There is a growing sense among legislative Democrats and possibly Governor Brown that the use of General Obligation bonds to fund water infrastructure might not be sustainable in the future. SB 34 by Senator Joe Simitian (D -Palo Alto) and SB 571 by Senator Lois Wolk (D- Davis) are 2 -year bills that would establish a public goods charge on water purveyors (a per acre foot charge) that could collect up to $5 billion annually; one -half of the funds would be available to the State Legislature to appropriate for water and environmental programs and projects, and one -half would be available to local agencies through a new regional governance structure to fund programs and projects under integrated regional water management plans. This means that for every $1 collected from an individual water purveyor, at best, less than 50 cents would be returned to benefit local water customers. In a related move, the Association of California Water Agencies Board of Directors has established a Water Finance Task Force that will develop a board policy. An advisory group has been formed to assist the task force, which is expected to produce a work product for board consideration by the end of the calendar year. The board member for Region 8 on the Task Force is Glen Peterson, while Region 8 representatives on the Advisory Group include Richard Nagel, Western Municipal Water District; Kathy Cole and Roger Patterson, Metropolitan Water District of Southern California; and Dan Masnada, Castaic Lake Water Agency. The creation of the Water Finance Task Force is not the first time that ACWA Executive Director Tim Quinn has encouraged the Board of Directors to develop and adopt policy frameworks. In recent past, a groundwater framework was prepared and adopted. These policies become binding on the ACWA State Legislative Committee as that committee seeks to represent ACWA membership on myriad legislative issues. A rigid approach could undermine the ability of the committee to act on legislation in a timely manner and there is no formal mechanism for interpreting broad policy language and applying it to specific legislative proposals. Either the work of the committee will be slowed or ACWA will not be able to engage in potentially significant legislation. Already, Reeb Government Relations has witnessed a growing divide on the State Legislative Committee between coastal urban members versus inland and agricultural members. As membership divides along lines of centralized versus local control, ACWA may either be neutered in terms of advocating on behalf of its members, or narrower majorities will -21 - direct positions at the committee level. This trend argues for the District to become more active in ACWA Region 8 board and committee level positions in the Association, as well as to regularly communicate its positions and concerns to Region 8 representatives on the ACWA Board of Directors and standing committees. The trend also argues for continued District vigilance in Sacramento, as its positions may not line up with its statewide association on important legislative and regulatory matters. EVWD is contemplating pursuit of a legislative solution to the fiscal challenge presented by wastewater treatment cost increases imposed by the City of San Bernardino. These increases are not imposed on a regular schedule, thus impacting the ability of the District to pass along such increases to its wastewater collection properties. Proposition 218 does not require the City of San Bernardino to notify property owners beyond its jurisdictional boundaries in order to provide them an opportunity to protest rate increases. Yet, EVWD must increase the amount of revenue collected from its customers and therefore must comply with Proposition 218. The timing of such rate increases can be a significant challenge in terms of procedural costs and customer relations. While current law allows a retail water provider to pass along the increased costs imposed by a wholesale water provider, no similar provisions exist for a "wholesale- retail" relationship in the wastewater arena. There are several options to resolve this problem —each with its own pro and con arguments. Regardless of approach, time is of the essence as the new session begins January 2, 2012. -22-