HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 11/28/2012too East Valley
Water District
3694 HIGli LAND AVE., SUITE #30, HIGHLAND, CA
13OARD MEETING November 28, 2012 5:30 RIM.
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 Wednesday prior to the following Wednesday meeting not requiring
dcpartmerotl 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
regarding any items within the subject matter jurisdiction of the East Valley Water District. The Board of
Directors may BRIEFLY respond to statements made or questions posed. Comments are limited to three
minutes per speaker.
AGENDA - This agenda contains a brief general description of each item to be considered. Except as
otherwise provided by law, no action shall be taken on any item not appearing on the following agenda
unless the Board of Directors makes a determination that an emergency exists or that a need to take
immediate action on the item came to the attention of the District subsequent to the posting of the
agenda.
Approval of Agenda
CONSENT CALENDAR - All matters lister 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.
21. Approval of the Board meeting minutes for November 14, 2012
b. Accept and file the Financial Statements for September 2012
c Approve Facsimile Signature Agreement between East Valley Water District and Citizens
Business Bank
d. Resolution 2012.21 - A Resolution of the Board of Directors of the East Valley Water
District adopting a Conflict of Interest Code
C. Approve the request to cancel the December 26, 2012 Board meeting
L Accounts Payable Disbursements: Accounts Payable Checks 234629 through 234770
which were distributed during the period of November 7, 2012 through November 20,
2012 in the amount of $1,004,795.07. Payroll and benefit contributions for the period
ended November 20, 2012 and included checks and direct deposits, in the amount of
$258,929.30. Total Disbursements for the period $1,263,724.37
NEW BUSINESS
3. 2012 Annual Legislative Report presented by Mr. Robert Reeb (Reeb Government Relations,
LLC)
4. Discussion and possible action regarding the District's scrap recycling program
5. Discussion and possible action regarding the letter of intent for comprehensive efficiency and
conservation measures program
REPORTS
6. General Manager /Staff Reports
7. Legal Counsel Report
8. Oral comments from Board of Directors
CLOSED SESSION
9. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION
[Government Code Section 54956.9(a)]
Name of Case: Bear Valley Mutual Water, et al v Kenneth L. Salazar„ et al., United States
District Court Case No. 11-CV-01263-JVS.
10. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
[Government Code Section 54956.8]
Property:
1192-241-01,1192-231-01
San Bernardino County
State of California
Party with whom District will negotiate: San Bernardino International Airport
Authority
Party who will be negotiating on behalf of the District: John Mura
Under Negotiation: Price and Terms of Payment
2
it. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
[Government Code Section 54956.81
1'-operty:
Party with whom District will negotiate:
Parte who will be negotiating on behalf of the District:
Cnder Negotiation:
ANNOUNCEMENT OF CLOSED SESSION ITEMS
AI "o =I RN
PLEASE NOTE:
1191-251-02,1191-251-05,1191-251-06
San Bernardino County
State of California
Potential Buyers
John Mura
Price and Terms of Payment
Materiats velared to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection in the District's office located at 3654 E. Highland Ave, Suite 18, Highland,
during normal business hours. Also, such documents are available on the District's website at
www.castvall y.org subject to staff's ability to post the documents before the meeting.
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
feast 72 hours prior to said meeting.
Subiect to Approval
EAST VALLEY WATER DISTRICT
RFC:ULAR BOARD MEETING
MINUTES
NOVEMBER 14, 2012
The Chairman of the Board called the meeting to order at 5:30 p.m. Mrs. Eileen Bateman
led the flag salute.
PRESENT: Directors: LeVesque, Morales, Sturgeon, Wilson
ABSENT: Directors: Coleman
ST.AFl John Mura, General Manager/CEO; John Vega, Assistant General
Manager; Effeen Bateman, Executive Assistant
LEGAI_ COUNSEL: Steve Kennedy
GUESI (s): Members of the public
APPROVAL OF AGENDA
The General. Manager requested that item #3 be removed and be re-agendized for the
November 28, 2012 meeting.
M/S/C (Wilson -Morales) that the November 14, 2012 agenda be approved as
amended.
PUBLIC PARTICIPATION
Chairman LeVesque declared the public participation section of the meeting open at 5:31
p.m.
There being no written or verbal comments, th-_ public participation section was closed.
APPROVAL OF SPECIAL BOARD MEETING MINUTES FOR SEPTEMBER 18, 2012
M/S/C (Wilson -Sturgeon) that the Special Board meeting minutes for September
18, 2012 be approved as submitted.
Minutes: 11/14/12 etb
APPROVAL OF SPECIAL BOARD MEETING MINUTES FOR OCTOBER 10, 2012
M/S/C (Wilson -Sturgeon) that the Special Board meeting minutes for October 10,
2012 be approved as submitted.
APPROVAL OF BOARD MEETING MINUTES FOR OCTOBER 24, 2012
M/S/C (Wilson -Sturgeon) that the Board meeting minutes for October 24, 2012 be
approved as submitted.
ACCEPT AND FILE THE FINANCIAL STATEMENTS FOR AUGUST 2012
M/S/C (Wilson -Sturgeon) that the Financial Statements for August 2012 be
accepted.
DIRECTOR'S FEES AND EXPENSES FOR OCTOBER 2012
M/S/C (Wilson -Sturgeon) that the Directors fees and expenses for October 2012
be approved as submitted.
DISBURSEMENTS
M/S/C (Wilson -Sturgeon) that General Fund Disbursements #234430 through
#234628 distributed during the period of October 18, 2012 through November 6, 2012 in
the amount of $1,550,650.18 and Payroll Fund Disbursements for the period November 6,
2012 in the amount of $331,795.53 totaling $1,882,445.71 be approved.
PUBLIC HEARING
The Chairman of the Board opened the public hearing at 5:32 pm.
PUBLIC HEARING TO CONSIDER ADOPTION OF THE AMENDED 2010
REGIONAL URBAN WATER MANAGEMENT PLAN
A. DISCUSSION REGARDING THE 2010 REGIONAL URBAN WATER
MANAGEMENT PLAN
B. RESOLUTION 2012.19 - A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE EAST VALLEY WATER DISTRICT AMENDING THE 2010 SAN
BERNARDINO VALLEY REGIONAL URBAN WATER MANAGEMENT
PLAN
The Chairman closed the Public Hearing at 5:34 pm.
Mr. Ochoa reviewed the amended 2010 Regional Urban Water Management Plan with
the Board.
2 Minutes: 11/14/12 etb
M/S/C (Sturgeon -Wilson) that Resolut.on 2012.19 be approved.
GENERAL MANAGER/STAFF REPORTS
The General Manager, Assistant General Mar.ager and Chief Financial Officer reported
on the following items:
• City of Highland 25`h Anniversary Jubilee - November 17, 2012
• The pink -tag charge increase noted on bills through December 1, 2012
• Imployee Awards Banquet
• Upcoming presentations to promote and implement wager conservation,
information about the District and emergency preparedness will be held.
o Redlands East Valley High School
o Rotary Club
o East Highlands Ranch
o San Manuel Safety Fair
• plant 134 update
• Seven Oaks Dam Tour
Information only.
LEGAI_ COUNSEL REPORT
No report at this time.
ORAL COMMENTS FROM THE BOARD OF DIRECTORS
Board Member Wilson stated that he is pleased to see that Plant 134 will be on-line soon
Board Member Sturgeon stated that his Rotary Club meets on Thursdays at the
Arrowhead Country Club; that he attended a luncheon at the Salvation Army and heard
Supervisor Ramos speak, that Supervisor Ramos is on fire as an elected official; that: he
attended the San Bernardino Water Conservation District meeting where Robert Martin
was honored.
Vice Chairman Morales thanked staff for their work on the article in the "Our Town"
insert in the Highland Community News and : or all members serving the District; stated
that he looks forward to the new -year; and congratulated the General Manager on his
winning; Chili at the recent employee Chili Cook -off and thanked staff for inviting Board
Members to the event.
Chairman LeVesque commended staff for their fantastic job on a well -executed tour; that
even Aith the bad weather and muddy roads he received positive feedback from
participants.
Minutes: 11/14/12 etb
The Board took a break at 5:46 p.m.
CLOSED SESSION
The Board entered into Closed Session at 5:48 p.m. as provided in the California Open
Meeting Law, Government Code Section 54945.9(a), to discuss the items listed on the
agenda.
ANNOUNCEMENT OF CLOSED SESSION ACTIONS
The Board returned to regular session at 5:50 p.m. The items listed on the agenda were
discussed in closed session with the following action being taken.
With respect to Item #10 - The Board reviewed and considered the claim for damages
submitted by Mr. Kurt Meyer and with a 4-0 vote, (Director Coleman absent), to accept
the claim and instruct staff and legal counsel to proceed accordingly.
Item #11- No reportable action taken.
Item #12 - No reportable action taken.
ADJOURN
The meeting adjourned at 5:51 p.m.
John J. Mura, Secretary
Matt Levesque, President
4 Minutes. 11/14/12 etb
BOARD AGENDA STAFF REPORT
toEast Valley Meeting Date: November 28, 2012
_ Water District Public Hearing: 0
Discussion Item: ED
Consent Item 0
Closed Session F-1
November 16, 2012
TO: GOVERNING BOARD MEMBERS
FROM: GENERAL MANAGER/CEO
SUBJECT: FINANCIAL STATEMENTS FOR SEPTEMBER 2012
RECOMMENDATION:
Staff recommends that the Board of Directors accept and file the attached financial statements.
BAC ICG ROU ND/ANALYSIS:
Revenue ass Expenses
Water sales were $25,697 below projection for September, during which the District sold 751.3
MG of water. As shown in the graph below, customer consumption for September 2012 was
slightly lower than consumption during September 2010 and 2011. Other District operating
revenues were $16,124 over projection in September, and Sewer Treatment revenue, which is
passed through to the City of SB was $11,384 over projection.
1,200,000
1,100,000
1,000,000
900,000
500,000
700,000
LL
U E00,000
500,000
400,000
300,000
200,000
Sales Volume by Month - i-urrent Fiscal Year
(with2 previous yrs.for comparison)
'0;A _ - -
- -- --- __- 2010-11
— .2011-12
--__-_-- -- 2012-13 (Est Oct -
June)
100,000
<° o Z o LL a ;
Page I 1
SR#0177
AGENDA DATE: NOVEMBER 28, 2012
SUBJECT: FINANCIAL STATEMENTS FOR SEPTEMBER 2012
Operating Expenses
Water operating expenses were $208,231 under budget, and sewer operating expenses $36,193
under budget in September.
Significant savings in the water department included Contracted Treatment, where costs of
$26,099 were $71,171 under budget for the month. There are two reasons for significant savings:
1) Plant 27 remains offline due to fluoride readings, and
2) Alternative sources to Plant 107 are being utilized, whenever possible, to avoid the $497
per acre foot treatment charge that is incurred on water produced by this plant.
Capital Projects
Total capital expenditures during September were $572,735. There was $563,447 spent on CIP
projects during the month. That included $232,594 on the Plant 134 upgrade project, $124,000
on the Plant 143 new reservoir project and $120,383 spent on our AMR Meter Replacement
Program.
STRATEGIC INITIATIVE:
The District's financial statements support:
Strategic Initiative I - Provide Safe and Reliable Water Supply
(B) — Identify unit cost for delivery sources
(D) — Develop cost effective Water Supply Mix
(E) — Transparent and efficient financial management
FISCAL IMPACT:
There is no fiscal impact associated with this agenda item.
Respectfully submitted:
,
vU L
John ura
General Manager/CEO
ATTACHMENTS:
September Financial Statements
Page 12
Recommended by:
rian Tompkin
Chief Financia Officer
SR#0177
East Valley Water District
Balance Sheet by fund - Unaudited
September 30, 2012
Water
Fund
ASSETS
UTILITY PLANT - at cost
Utility Plant in Service $125,999,329
Less. Accumulated Depreciation _ (39,702,971)
86,296,358
Construction in Progress _ 15,425,156
101,721,514
RESTRICTED ASSETS
Customer / Constr. Deposits 1,797,126
Capacity Fees 270,978
Rate Stabilization Reserve 672,081
Construction Funds 12,363,183
Debt Service Funds - Trust Accts 1,976,407
16,808,797
CURRENT ASSETS:
Cash and Investments 20,865,254
Less: Restricted Cash and Investments 16,808,797
4,056,457
Accounts Receivable (net of allowance)
2,155,023
Interest Receivable
4,725
Assessments receivable
116,203
Other Receivables
(20,392)
Grants Receivable
1,782,079
Inventory
904,999
Prepaid Expenses
185,906
OTHER ASSETS:
Deferred financing charges 520,943
Property held for resale 751,842
Due from Other Funds
Sewer
Fund
Totals
$31,964,418
$157,963,747
14,375,240)
X54,078,211)
17, 589,178
103, 885.536
25,954
15,451,110
17, 515,132
119, 336, 646
112,842
1,909,968
30,173
301,151
96,366
768,447
199,035
12,562,218
1,976,407
408,243 17,217,040
5,321,726 26,186,980
408,243 17,217,040
4,913,483 8,969,940
2,155,023
2,650
7,375
116,203
(20,392)
1,782,079
904,999
185,906
4,916,133
14,101,133
16,156
537,099
(384,725
1,436,567
7,000,000
7,000,000
1,272,785 7,700,881 8,973,666
TOTAL ASSETS 12 8,988,096 30,640,389 159,628,485
Balance Sheet Page! 1
East Valley Water District
Balance Sheet by fund - Unaudited
September 30, 2012
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
2010 Revenue Bonds
Premium on 2010 Rev Bonds
DWR Loans
Due To Other Fund
Less: Deferred Amt on Refunding
Water
Fund
$30,670,000
1,985,485
3,969,578
7,000,000
(416,055)
43,209,008
Sewer
Fund
$765,000
86,282
851,282
Totals
$31,435,000
2,071,767
3,969,578
7,000,000
(416,055)
44,060,290
CURRENT LIABILITIES PAYABLE FROM RESTRICTED ASSETS:
Customer service deposits
1,698,126
1,698,126
Construction deposits
99,000
112,842
211,842
Accrued interest payable
702,956
17,950
720,906
2,500,082
130,792
2,630,874
CURRENT LIABILITIES:
Accounts payable
1,087,287
1,252,898
2,340,185
Accrued payroll and benefits
356,868
49,515
406,383
Compensated absences
428,184
160,949
589,133
Long Term Debt - amt due within one yr
983,910
75,000
1,058,910
2,856,249
1,538,362
4,394,611
TOTAL LIABILITIES
48,565,339
2,520,436
51,085,775
EQUITY:
Invested in Utility Plant
78,164,564
17,588,766
95,753,330
Restricted:
Capacity Fees
270,978
30,173
301,151
Designated:
Rate Stabilization Reserve
672,081
96,366
768,447
Unrestricted / Undesignated
1,315,134
10,404,648
11,719,782
Income Year To Date
2,846,738
375,995
3,222,733
TOTAL EQUITY
80,422,757
28,119,953
108,542,710
TOTAL LIAB AND EQUITY 128,988,096 30,640,389 159,628,485
Balance Sheet Page 2
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BOARD AGENDA STAFF REPORT
East Val ley Meeting Date: November 28, 2012
_ _ Water District Public Hearing: 0
Discussion Item: r-1
Consent Item (]
Clos=d Session F-1
November 16, 2012
TO'. GOVERNING BOARD MEMBERS,
FROM: GENERAL MANAGER/CEO
SUBJECT FACSIMILE SIGNATURE AGREEMENT
RECOMMENDATION:
Staff recommends that the Board of Directors approve the Facsimile Signature Agreement with
Citizens Business Bank to allow for the use of starips as authorized signatures on District issued
checks.
BACKGROUND/ANALYSIS:
All District issued checks require two (2) signatures from the General Manager, Administrative
Manager or Chief Financial Officer. Due to the significant number of cheeks issued, staff has
ordered signature stamps to increase operational efficiencies. However, in order to put these
stamps into use, Citizens Business Bank requires the District to authorize the use of the stamps
through a Facsimile Signature Agreement.
STRATEGIC INITIATIVE:
Approving the Facsimile Signature Agreement supports:
Strate Temic Initiative II - Create an Environment more Conducive to Efficient and Effective Public
Service and key performance objectives
FISCAL. IMPACT:
There is rio fiscal impact associated with this agenda item.
Respecthilly submitted:
John Mum
General Ma+rr/CE(O
Recommended by:
Brian Tompkin
Chief Financi Officer
Page JI
SR#0176
ast. Valley_ Water_ District
Customer/Account Name
CITIZENS BUSINESS BANK
FACSIMILE SIGNATURE AGREEMENT
Account 238103363
Number (s)
Citizens Business Bank ("Bank') and the Customer named above agree as follows:
1. Bank may honor checks or drafts for the payment of money drawn on Customer's above described accounts when the items bear or
appear to bear the facsimile signature of any of the following persons:
''^^
John Mura�\
Print Name
Signature
Facsimi
Brian W Tompkins
,
Print Nante
SignatureGGdt/
�acsimile��
Justine Hendricksen
,✓-
2. Bank may honor and charge Customer for such items, regardless of by whom or by what means the actual or purported facsimile
signature has been made, provided the facsimile signature resemble< the signature, or the facsimile specimen, which Customer has
tiled with Bank.
3. All previous authorizations for the signing and honoring of checki, drafts or other orders for the payment of money drawn: on Bank
by Customer are continued in full force and effect.
4. Customer agrees to hold Bank harmless and indemnify Bank from and against any and all loss, cost, expense, including reasonable
attorney's fees, resulting from Bank acting upon such authorization which Bank reasonably believes to have come from the customer.
5. Bank may terminate this agreement at any time with or without cause or prior notice.
Dated.
I certify that
1-2
Authorized Signature
Title:
CORPORATE CERTIFICATION
+ I am the Secretary or Assistant Secretary of the Corporation named above;
* 1 hereby certify that the following resolution is a complete and accurate copy of a resolution duty adopted by the
Corporation's Hoard of Directors:
"RESOLVED: The President, any Vice President, the Secretary, or Treasurer of this
Corporation is authorized to enter into Facsimile Signature Agreements with Citizens Business
Bank on behalf of this Corporation. FURTHER RESOLVED: This authorization is in addition
to any other authorizations in effect and shall remair in effect until Citizens Business Bank
receivms written notice of its revocation at each office where this Corporation's accounts are
maintained.”
The resolution is now in full force and has not been revoked cr changed in any way.
DA FED:
SIGNATC RE OF SECRETARY OR ASSISTANT SECRETARY
A"-0051) 01/05/2005
AUTHORIZATION
By Partnership Limited Liability Company Lodge Society, or Unincorporated Association
By signing below, you certify and agree that:
1. If Customer is a partnership, the persons signing below as partners constitute all of the general partners of the partnership, and
authorize the person signing on page one to enter into Facsimile Signature Agreements with Citizens Business Bank.
2. If the Customer is a limited liability company, lodge, society or unincorporated association, the persons signing below at members
or officers of Cd�tomer and are aptliorized to enter into Facsimile Signature Agreements with Citizens Business Bank.
3. This Auth tzp. `ts_jh a c ny other authorization in effect and shall remain in effect until Citizens Business Bank
receives Writtt n of its ie at each office where Customer's accounts are maintained.
Date: �..
�..
ByBy.
PARTNER, MEMBER OR OFFICER
By: By:
PARTNER, MEMBER OR OFFICER,
In
PARTNER, MEMBER OR OFFICER
an
PARTNER, MEMBER OR OFFICER
PARTNER, MEMBFR OR OFFICER
PAR "INER, MEMBER OR OFFICER
AUTHORIZATION
By public Agency
I. The persons signing below are authorized officials of Fast Valley Water District and authorize the
Name of Public Agency
person signing on page one to enter into a Facsimile Signature Agreement with Citizens Business Bank.
2. This Authorization is in addition to any other authorization in effect and shall remain in force until Citizens Business Bank receives
a written notice of its revocation at each location where the accounts are maintained from the Legislative Body of this public agency.
Date
By:
Jctn Msa
By
Brie W Taq�kim
AG -005D 01/05/2005
Title: Chief Firurial Offices
BOARD AGENDA STAFF REPORT
tovater
stValley
District
Meeting Date: November 28, 201.2
Public Hearing: ❑
Discussion Item: ❑
Consent Item ED'
Closed Session ❑
November 19, 2012
TO: GOVERNING BOARD MEMBERS
FROM: GENERAL MANAGER/CEO
SUBJ ECT: CONFLICT OF INTEREST CODE.
RECOMMENDATION:
Staff recommends that the Board of Directors adopt a resolution amending the District's
Conflict of Interest Code with the attached appendices.
BACKGROUND/ANALYSIS:
The Political Reform Act requires every local government agency to review its conflict of interest
code biennially. In 2010, the District reviewed its conflict of interest code and concluded that
there was no amendment required at that time. However, due to the number of organizational
changes that have occurred since 2010, staff has determined that there is a need to update and
amend the Conflict of Interest Code and attached appendices. The changes are reflected in
Designated Positions and Disclosure Categories as submitted.
RFVIEN ' BY OTHERS:
Administrative staff has reviewed this agenda item.
STRATEGIC INITIATIVE:
The District's conflict of interest code supports:
Strateiic Initiative I - Provide Safe and Reliable Water Supply
(A) - -Meet all regulatory requirements
(B) - Transparent and efficient financial management
FISCAL IMPACT:
There is rro fiscal impact associated with this agenda item.
Page I 1
SR#0178
AGENDA DATE: NOVEMBER 28, 2012
SUBJECT: CONFLICT OF INTEREST CODE
Respectfully submitted:
John Mura
General Man ger/CEO
Recommended by:
r
Jusne Hendricksen
ministrative Manager
ATTACHMENTS:
Resolution 2012.21
Appendix — Conflict of Interest and Disclosure Code
Page 12 SR#0178
RESOLUTION NO. 2012.21
A RESOLUTION OF THE
BOARD OF DIRECTORS OF THE
EAST VALLEY WATER DISTRICT
ADOPTING A CONFLICT OF INTEREST CODE
WHEREAS, the East Valley Water District ("the District") is a county water district
organized and operating pursuant to California Water Code Section 30000 et seq., and a local
government agency subject to the requirements of the Political Reform Act of 1974 ("the Act"),
California Government Code Section 81000 et seq.;
WHEREAS, Section 87300 of the Act requires all local government agencies to adopt: and
promulgate conflict of interest codes pursuant to the provisions of the Act;
WHEREAS, the Fair Political Practices Commission ("the FPPC") has adopted a
regulation, 2 Cal. Code of Regs. Section 18730, which contains the terms of a standard conflict of
i merest code which can be incorporated by reference, and which maybe amended by the FPPC after
public notice and hearings to conform to amendments in the Act; and
WHEREAS, the District desires to comply with its statutory requirements under the Act
and to provide a method to ensure that its Conflict of interest Code is current and consistent with
the prevailing provisions of the Act and the regulations of the FPPC.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley
Water District as follows'
Section 1.
The terms of 2 Cal. Code of Regs. Section 18730, and any amendments to it duly adopted
by the FPPC, are hereby incorporated herein by this reference and, along with the attached
Appendix: in which members and employees are designated and disclosure categories are set forth,
shall constitute the District's Conflict of Interest Code. In the event of any inconsistency between
the attached Appendix and the prevailing provisions of the Act and/or the applicable regulations of
the_ FPPC, the Act and the FPPC regulations shall control.
Section 2.
Designated officials shall file statements of economic interest with the District which will
then be made available to the public for inspection and reproduction. Upon receipt of the
statements from the District's Board of Directors and General Manager, the Secretary of the District
shall make and retain a copy and forward the original cf said statements to the County Clerk of the
Countv of San Bernardino. Statements for all other designated officials will be retained by the
District Secretary.
Section 3.
This Resolution supersedes Resolution No. 2008.26 adopted by the District's Board of
Directors on December 9, 2008, and shall take effect immediately upon its adoption.
ADOPTED this 28`h day of November, 2012.
ATTEST:
AYES:
NOES:
ABSTAIN:
ABSENT:
John J. Mura
Secretary, Board of Directors
Matt LeVesque
President, Board of Directors
2
APPENDIX
CONFLICT OF INTEREST A -VD DISCLOSURE CODE
SECTION 100 Adoption of Code.
The East Valley Water District (Athe District@) in the County of San Bernardino hereby adopts this
Conflict of Interest and Disclosure Code (ACode@j. The provisions of this Code are additional to
Government Code Section 87100 and other laws pertaining to conflicts of interest. Except as
otherwise indicated, the definitions of said Act and regulations adopted pursuant thereto are
incomorared herein and this Code shall be interpreted in a manner consistent: therewith.
SECTION 200. Designated Positions.
The positions listed on Exhibit AB@ are designated positions. Persons holding those positions are
deemed to participate in the making of decisions which may foreseeably have a material effect: on a
financial interest.
SECTION 300. Economic Disclosure Statement_.
Designated positions are assigned to one or more of the disclosure categories set forth on Exhibit
AA.@ Each person holding a designated position shall file a statement disclosing his/her interest in
investments, business positions, real property, and income, designated as reportable under the
category to which his/her position is assigned on Exhibit AB.@
SECTION 400. Place and Time of Filing.
A. Persons holding designated positions whica are added to the District=s Code shall file an
initial statement within 30 days after the effective date of the Code.
B. Persons appointed, promoted, or transferred to designated positions shall file an assuming
office statement with the District within 30 days after assuming the position.
C. Annual statements shall be filed with the District by April 1" by all persons holding
designated positions. Such statements shall cover the period of the preceding calendar year
or from the date of the last statement filed.
D. Leaving office statements shall be filed with the District within 30 days of leaving a
designated position. Such statements shall cover the period from the closing date of the last
statement filed to the date of leaving the position.
E. An individual who resigns a designated position within 12 mont'ts following initial
appointment or within 30 days of the date of a notice mailed by the filing officer of the
individual=s filing obligation, whichever is earlier, is not deemed to assume or leave office,
provided that during the period between appointment and resignation, the individual does
not make, participate in making, or use the position to influence any decision of the District,
or receive, or become entitled to receive, any form of payment by virtue of being appointed to
the position. Within 30 days of the date of a notice mailed by the filing officer, the individual
shall do both of the following:
(1) File a written resignation with the appointing power
(2) File a written statement with the filing officer signed under the penalty of perjury
stating that the individual, during the period between appointment and resignation,
did not make, participate in the making or use the position to influence any decision
of the District or receive, or become entitled to receive, any form of payment by
virtue of being appointed to the position.
SECTION 500. Contents of Economic Disclosure Statements.
Statements shall be made on forms supplied by the District, and shall contain the following
information.
A. When an investment, or an interest in real property, is required to be reported, the statement
shall contain:
(1) A statement of the nature of the investment or interest;
(2) The name of the business entity in which each investment is held, and a general
description of the business activity in which the business is engaged,
(3) The address or other precise location and the use of the real property;
(4) A statement whether the fair market value of the investment or interest in real
property equals or exceeds two thousand dollars ($2,000) but does not exceed ten
thousand dollars ($10,000), whether it exceeds ten thousand dollars ($10,000) but
does not exceed one hundred thousand dollars ($100,000), whether it exceeds one
hundred thousand dollars ($100,000) but does not exceed one million dollars
($1,000,000) or whether it exceeds one million dollars ($1,000,000); and
(5) If any otherwise reportable investment or interest in real property was partially or
wholly acquired or disposed of during the period covered by the statement, the date
of acquisition or disposal shall be reported.
B. When income is required to be reported, the statement shall contain:
(1) The name and address of each source of income aggregating five hundred dollars
($500) or more in value, or fifty dollars ($50) or more in value if the income was a
gift, and a general description of the business activity, if any of each source;
(2) A statement whether the aggregate value of income from each source, or in the case
of a loan, the highest amount owed to each source, was at least five hundred dollars
($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of
one thousand dollars ($1,000) but not greater than ten thousand dollars ($10,000),
whether it was greater than ten thousand dollars ($10,000) but not greater than one
hundred thousand dollars ($100,000), or whether it was greater than one hundred
thousand dollars ($100,000);
(3) A description of the consideration, if any, for which the income was received;
(4) In the case of a gift, the amount or value and the date ori the gift was received
and the name, address, and business activity, if any, of the intermediary or agent and
the actual donor;
(5) In case of a loan, the annual interest rate and security, if any, given for the loan; and
(6) The first report filed by a person holding a designated position shall disclose any
reportable investments, interests in real property, business positions, and income
received during the previous 12 morths.
C. When the filer -s pro rata share of income to a business entity or trust, including income to a
sole proprietorship, is required to be reported, the statement shall contain:
(1) The name, address, and a general description of the business activity of the business
entity; and
(2) The name of every person from whom the business entity received payments if the
filer=s pro rata share of gross receipu, from such persons was equal to or greater than
ten thousand dollars ($10,000) during a calendar year.
D. When business positions are required to be reported, the statement shall contain:
(1) The name, address, and a general description of the business entity;
(2) The filer=s job title or position; and
(31 A statement whether the position was held throughout the entire reporting period
and the dates the position was commenced or terminated, if not held during the
entire reporting period.
SECTION 600. Disqualification.
Persons holding designated positions shall disqualify themselves from making or participating in the
making or in any way attempting to use their official position to influence a ,governmental decision
when it is reasonably foreseeable that the decision will have a material financial effect,
distinguishable from its effect on the public generally, on:
A. The financial status of the person holding a designated position or that of his or her spouse
or dependent children;
B. Any business entity located in, doing business in, owning real property in, or planning to do
business in the jurisdiction of the person holding a designated position, in which said
person, or his or her spouse or dependent child, has a reportable investment of $2,000 or
more;
C. Any real property located in the jurisdiction of the person holding a designated position and
said person, or his or her spouse or dependent child, has a reportable interest of $2,000 or
more in that real estate;
D. Any person, business entity, or nonprofit entity located in, doing business in, owning real
property in, or planning to do business in, the jurisdiction of the person holding a designated
position, from which said person or his or her spouse has received reportable income, other
than loans by a commercial lending institution in the regular course of business, aggregating
five hundred fifty dollars ($500) or more in value within tvvelve months prior to the time the
decision is made;
E. Any person, business entity, or nonprofit entity from which the person holding a designated
position has received a reportable gift aggregating three hundred ninety dollars ($390) or
more in value within twelve months prior to the time the decision is made; and
F. Any business entity, other than a nonprofit organization, in which the person holding a
designated position is a director, officer, partner, trustee, employee, or holds any position of
management.
SECTION 700 Adoption by Incorporation.
Adoption by incorporation by reference of the terms of this code along with the designation of
employees and the formulation of disclosure categories in the Exhibits referred to above constitute
the adoption and promulgation of a Conflict of Interest and Disclosure Code.
CONFLICT OF INTEREST AND DISCLOSURE CODE
Exhibit A
CATEGORYI
Persons in this category shall disclose all interest in real property within the jurisdiction. Real
property shall be deemed to be within the jurisdiction if the property or any part of it is located
within or not more than two miles outside the boundaries of the jurisdiction or within two miles of
any land owned or used by the District.
CATEGORY 2
Persons in this category shall disclose all investments and business positions.
The Political Reform Act defines investment as follows:
Alnvestment@ means any financial interest in or security issued by a business entity,
including but not limited to common stock preferred stock, rights, warrants, options, debt
instruments,
and any partnership or other ownership interest owned directly, indirectly, or beneficially by
the public official, or other filer, or his or her immediate family, if the business entity or any
Parent, subsidiary, or otherwise related business entity has an interest in real property in the
jurisdiction, or does business or plans to do business in the jurisdiction, orhas done business
within the jurisdiction at any time during the two years prior to the time any statement or
of her action is required under this title. No asset shall be deemed an investment unless its
I air market value equals or exceeds two tho asand dollars ($2,000). The term Ainvestment@1
does not include a time or demand deposit i a a financial institution, shares in a credit union,
any insurance policy, interest in a diversified mutual fund registered with the Securities and
1 _tchange Commission under the Investment Company Act of 1940 or a common trust fund
which is created pursuant to Section 1564 of the Financial Code, or any bond or other debt
i n strument issued by any government or government agency. Investments of an individual
include a pro rata share of investments of any business entity, mutual fiord, or trust in which
the individual or immediate family owns, directly, indirectly, or beneficially, a 10 -percent
int -crest or greater.
Accordin;- to the Political Reform Act, a business position is a position of director, officer, partner,
trustee, employee, or any position of management in any organization or em-erprise operated for
profit, including but not limited to a proprietorship, partnership, firm, business trust, joint venture,
syndicate, corporation or association.
CATEGORY3
Persons in this category shall disclose all income and business positions.
The Political Reform Act defines income as follows
AIncome@ means a payment received, including but not limited to any salary, wage,
advance, dividend, interest, rent, proceeds from any sale, gift, including any gift of food or
beverage, loan, forgiveness or payment of indebtedness received by the filer, reimbursement
for expenses, per diem, or contribution to an insurance or pension program paid by any
person other than an employer, and including any community property interest in the
income of a spouse. Income also includes any outstanding loans. Income of an individual
also includes a pro rata share of any business entity or trust in which the individual or
spouse owns, directly, indirectly or beneficially, a 10 -percent interest or greater.
CATEGORY4
Persons in this category shall disclose all business positions, investments in, or income (including
gifts and loans) received from business entities that manufacture, provide or sell service and/or
supplies of a type utilized by the District and associated with the job assignment of designated
positions assigned to this disclosure category.
CATEGORY5
Consultants who are not employed as full-time staff members of the District shall nonetheless be
included as a designated employee and subject to the disclosure requirements herein. However,
those consultants whose positions are marked with an asterisk (*) in Exhibit AB@ of this Code, or
any other consultants which may be hired, may not be required to fully comply with the disclosure
requirements herein where the range of duties which they are hired to perform is limited in scope.
Such determination shall be made in writing by the General Manager of the District and shall
include a description of the consultant's duties and, based upon that description, a statement of the
extent of the consultant=s disclosure requirements, if any. This determination is a public record and
shall be retained for public inspection in the same manner and location as this Code.
CONFLICT OF INTEREST AND DISCLOSURE CODE.
Exhibit B
DESIW4ATED POSITIONS
Director
General Manager
Assistant General Manager
Controller 'Chief Financial Officer
DISCLOSURE CATEGORIES
t-3
I-3
I-3
I-3
Assistattt-4)4gii Engineering Manager 1- 4
Admin strative Manager 4
Water Service Superintendent 4
Water Production Superintendent 4
Human Resource/ Risk & Safety Manager 4
Public Inlormation/Water Conservation Officer 4
Consultant
7
J
BOARD AGENDA STAFF REPORT
toEast Valley Meeting Date: November 28, 2012
Water District Public Hearing: E3
_ Discussion Item: O
Cor sent Item 0
Closed Session O
November 21, 2012
TO: GOVERNING BOARD MEMBERS
FROM: GENERAL MANAGER/CEO
SUBJECT: DECEMBER 26, 2012 BOARD MEETING
RECOMMENDATION:
Approve the cancellation of the December 26, 2012 Board meeting.
BACKG ROU ND/ANALYSIS:
Regularly scheduled Board meetings are held on the second and fourth Wednesday of each
month. Next month, the second meeting falls on December 26, during the scheduled District
holiday closure. Staff is recommending that the Board of Directors approve the cancellation of
the December 26, 2012 meeting. This cancellation will not impact District operations, because at:
this point there are no items that require the Board of Directors action. Items that require action
will be deferred to the January 9, 2013 meeting.
This time of year traditionally has reduced staffing levels because of coordinating vacations and
holidays.. however the scheduled closure has minimized the number of staff taking vacations
earlier in the month allowing for more consistent staffing levels leading up to the closure.
During tic holiday closures between December 24, 2012 and January 2, 2013, Customer Service
will be epen and accepting walk-in payments December 26-28, Water Production Crews will
continue to monitor and operate the various facilities, and Water Distribution Crews will be
available in the event of a major leak or other emergency.
STRATEGIC INITIATIVE:
The cancellation of the December 26, 2012 meeting in coordination with the scheduled holiday
closures Supports:
Strategic Initiative I1 - Create an Environment more Conducive to Efficient and Effective Public
Service and key performance objectives
Page 1
SR.#0181
AGENDA DATE: NOVEMBER 28, 2012
SUBJECT: DECEMBER 26, 2012 BOARD MEETING
FISCAL IMPACT:
There is no fiscal impact associated with this agenda item.
Respectfully submitted: Recommended by:
John Mura Kelly Mayo
General Manager/ EO Public Af Conservatio ffic
Page 12 SR#0181
BOARD AGENDA STAFF REPORT
t4
Meeting Date: November 28, 2012
East Valley
Water District Pub-ic Hearing: El
---- -- Discussion Item: (]
Consent Item ,2f
Closed Session F-1
October 17, 2012
TO: GOVERNING BOARD MEMBERS
FROM: CHIEF FINANCIAL OFFICER
SUBI ECT: DISBURSEMENTS
RECOMMENDATION:
Approve the attached list of accounts payable checks and payroll issued
BAC KGROUND/ANALYSIS:
Listings 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
November 7, 2012 through November 20, 2012.
Accounts payable checks for the period included check numbers 234629 through 234770 for a
total of $1,004,795.07.
The source of funds for this amount is as follows:
Unrestricted Funds $1,004,795.07
Bond Financing $
State Financing $
Payroll and benefit contributions paid for this period totaled $258,929.30.
Total disbursed during the period $1,263,724.37.
REVIEW 13Y OTHERS:
This agenda item has been reviewed by the Chief Financial Officer and the Accounting;
Supervisor.
Page lI
SR.#0179
AGENDA DATE: November 28, 2012
SUBJECT: DISBURSEMENTS
STRATEGIC INITIATIVE:
The District's Disbursements support:
Strategic Initiative I - Provide safe and Reliable Water Supply
(E) - Transparent and efficient financial management
FISCAL IMPACT:
$1,263,724.37 (budgeted expenditures)
Respectfully submitted
V
John Mura
General ManagerIC CO
ATTACHMENTS:
List of Accounts Payable checks
Recommended by:
Brian W. Tomp ns
Chief Financial Officer
Page 12 SR#0179
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BOARD AGENDA STAFF REPORT
East Valley Meeting Date: November 28, 2012
_ Water District Public Hearing: 1:1
Discussion Item: Ell
Consent Item ❑
Clo>ed Session
November 21, 2012
TO: GOVERNING BOARD MEMBERS
FROM.: GENERAL MANAGER/CEO
SUBJECT: 2012 ANNUAL LEGISLATIVE REPORT
RECOMMENDATION:
Review of the 2012 Annual Legislative Report
BACKGROUND/ANALYSIS:
Mr. Robert Reeb (Reeb Government Relations, LLC), the District's state advocate will provide
detailed review of legislative activities.
STRATEGIC INITIATIVE:
The review of the 2012 Annual Legislative report supports:
Strati-Qic Initiative IV - District Brand Development & Community Involvement
(C) Engage regional and national water partners
(E) Legislative platform and strategic grant pursuit
FISCAL IMPACT:
There is no fiscal impact associated with this agenda item.
Rcspecttully submitted:
II .i
S-- AU A�h,N ( 4W%1.i,ia
JohnTvlura
General Manage/CEO
ATTACHMENTS:
2012 Annual Report
Pagel
SR#0183
Reeb Government Relations, LLC
MEMORANDUM
October 30, 2012
TO: John Mura, General Manager
East Valley Water District
FROM: Bob Reeb and Raquel Ayala
Reeb Government Relations, LLC
SUBJECT: 2012 Annual Report
This is the fifth 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 and its 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.
State Budget and Proposition 30
Facing the threat of lost pay, state lawmakers sent a $92.1 billion spending plan to Governor Jerry
Brown on June 15 despite the lack of a budget agreement between legislative Democrats and the
Governor. Both houses of the Legislature swiftly passed seven budget trailer bills with little of the
drama that characterized late-night budget sessions of the past. This is the second time Democrats
have approved a spending plan using their majority -vote authority under Proposition 25, rather than
the supermajority vote required before 2011. The two houses voted along partisan lines, with most
Democrats in favor and Republicans opposed. Lawmakers had to pass a budget by the constitutional
deadline to avoid losing salary and per diem payments.
Although lawmakers made the June 15 deadline, they did not send the bulk of more than two dozen
"trailer" bills that detail how to cut programs and raise revenue. According to Senate President Pro
Tem Darrell Steinberg, Democrats did not pass all of the trailer bills because they wanted to finish
negotiations with the Governor before they voted on the measures. The two sides agreed on cuts to
courts and state workers, along with a November ballot initiative that, if approved by state voters,
would temporarily raise the sales tax and income tax rates for high-income earners. They also relied
on new revenue to balance the budget from greenhouse -gas emission credit auction proceeds,
1107 9th Street, Suite 510 (916) 558-1926 PH
Sacramento, California 95814 (916) 558.1932 FAx
MEMORANDUM
October 30, 2012
Page 2
borrowing $2.9 billion from special funds and relying on proceeds from a multistate settlement with
banks for past mortgage abuses.
Governor Brown signed the Fiscal Year 2012-13 budget on June 27 after the Legislature passed the
remaining trailer bills earlier that same day. Governor Brown used his line item veto authority to
reduce the budget by about $192 million. To close the $15.7 billion budget deficit, the $92 billion
budget makes deep cuts to social services and assumes that voters will pass the temporary tax
increase proposal on the November ballot (Proposition 30). The Governor says the state will cut
billions of dollars from higher education and public schools if Proposition 30 fails.
Proposition 30 would temporarily increase the state sales tax by one-quarter cent for every dollar,
beginning January 2013 and ending in 2016. It would also increase the existing 9.3 percent personal
income tax rate on higher income earners for seven years. These increases will apply to single filers
earning $250,000 or more a year and joint -filers making $500,000 or more a year. This revenue is
estimated to raise about $6 billion annually. The revenue from the measure will help the Governor
and the Legislature balance the FY 2012-13 budget and future state budgets. The measure would
also guarantee that local governments will annually receive tax revenues to fund program
responsibilities transferred to them by the state in 2011, according to Governor Brown. The
transferred program responsibilities include incarcerating certain adult offenders, supervising
parolees, and providing substance abuse treatment services.
A series of automatic cuts will be triggered if voters reject the tax initiative, including about $5.4 billion
in cuts to schools, community colleges and higher education, as well as three weeks less in the K-12
public school calendar for the next two years.
Pension Reform
On August 28—three days before the end of the legislative session—Governor Brown announced a
compromise with Democratic legislative leaders on changes to pension benefits for new public
employees, an agreement that includes legislation to cap pensions, curb pension spiking, increase to
50 percent the amount employees contribute to their retirement benefits and raise the retirement age.
According to the agreement, newly hired public safety employees would have to wait until age 57 to
retire with full benefits while current public safety workers can retire at 50. All other newly hired public
employees could retire with full benefits at age 67, instead of the current 55.
Lawmakers generally agreed to much of the pension plan unveiled by the governor last year, though
they softened several elements and rejected three of Brown's 12 goals outright, including a proposal
to create a "hybrid" model for public employees that included both a traditional defined benefit and
401(k) -style savings plan. Instead, Democrats and the Governor agreed to place a hard cap on the
amount of compensation that can be used when calculating retirement pay. Currently, there is no limit
on the pay by which a public employee's pension is calculated and some pensions run as high as
$500,000 a year. For public employees participating in Social Security, the proposed cap would be
based on the Social Security wage limit, which is currently $110,100 a year. Public workers not
paying into Social Security would have pensions based on a salary of up to 120 percent of the Social
Security wage limit, or $132,000 a year. Lawmakers rejected plans to change the makeup of the
CalPERS board of administration and Brown's proposal to increase state retiree health care vesting,
saying the issues should be settled at the bargaining table and that public employee unions are open
MEMORANDUM
October 30, 2012
Page 3
to negotiations on both of those issues. The bill package also included major changes to some of
Brown's most controversial proposals. Specifically, the pension reform legislation (AB 340) signed by
the Governor on September 12 would:
Gap Salaries
Cap salaries for calculating a pension at the Social Security contribution and wage base of
$110,100 (or 120 percent of that amount for employees not covered by Social Security).
Establish Equal Sharing of Pension Costs as the Standard
• Require new employees to contribute at least half of normal costs, and sets a similar target for
current employees, subject to bargaining.
• Eliminate current restrictions that impede local employers from having their employees help
pay for pension liabilities.
• Permit employers to develop plans that are lower cost and lower risk if certified by the system's
actuary and approved by the legislature.
• Provide additional authority to local employers to require employees to pay for a greater share
of pension costs through impasse proceedings if they are unsuccessful in achieving the goal of
50-50 cost sharing in 5 years.
• Direct state savings from cost sharing toward additional payments to reduce the state's
unfunded liability.
Roll Back Retirement Ages and Formulas
• Increase retirement ages by two years or more for all new public employees.
• Roll back the unsustainable retirement benefit increases granted in 1999 and reduce the
benefits below the levels in effect for decades.
• Eliminate all 3 percent formulas going forward
- For local miscellaneous employees: 2.5 percent at 55 changes to 2 percent at 62; with a
maximum of 2.5 percent at 67.
- For local fire and police employees: 3 percent at 50 changes to 2.7 percent at 57.
• Establish consistent formulas for all new employees going forward.
End Abuses
• Require three-year final compensation to stop spiking for all new employees.
• Calculate benefits based on regular, recurring pay to stop spiking for all new employees.
• Limit post-retirement employment for all employees.
• Felons will forfeit pension benefits.
• Prohibit retroactive pension increases for all Employees.
• Prohibit pension holidays for all employees and employers.
• Prohibit purchases of service credit for all employees.
For full text of the bill, visit: http://leginfo.ca.gov/bilinfo.htm1.
MEMORANDUM
October 30, 2012
Page 4
It's not yet clear how much money the changes will save the state. At his September 2 press
conference in Los Angeles, Governor Brown said these changes would save the state "billions" of
dollars, saying that "public retirement benefits will be lower than when I took office in 1975."
According to the cost analysis estimates produced by the California Public Employees' Retirement
System (CaIPERS) on August 31, the law will save between $42 billion and $55 billion over the next
30 years.
"This analysis does not include billions of dollars in additional potential savings that are expected from
other retirement systems in California," Rob Feckner, President of CaIPERS Board of Administration
said. "We expect the changes will also reduce abuse and add protections for members and
taxpayers."
Water Bond Delayed Until 2014
AB 1422, by Assembly Member Henry Perea, was amended on June 28 to change the submission
date for the Safe, Clean, and Reliable Drinking Water Supply Act (Water Bond) from the November
2012 general election to the November 2014 general election. The bond, which would provide a total
of $11.14 billion in funds for water supply, environmental restoration and groundwater protection
projects, was originally scheduled to be on the November 2010 ballot. The Legislature voted in 2010
to delay it until this year.
ACWA and other interest groups conducted surveys this year to gauge voter support for the bond.
The surveys showed that voters were unlikely to pass an $11.14 billion bond this year. This presented
two tough choices for supporters of the bond: (1) delay the water bond until 2014 when voter
perception of the bond might change, or (2) reduce the amount of the bond. In the end, a decision
was made to delay the bond. The Senate passed AB 1422 on July 5 with a 34 -2 vote, and the
Assembly passed it by a 69-7 vote later that same day. Both houses approved the urgency measure
on a two-thirds vote basis so the move would not be subject to legal challenge. Governor Brown
signed AB 1422 into law on July 9 (Chapter 74, Statutes of 2012). Moving the water bond to
November 2014 does not preclude efforts to shrink the size of the bond or change the content of the
proposal. Efforts in either direction could begin as early as next year.
District Remains Active on the Legislative Front
This year, the Governor was presented with a total of 996 bills; he signed 874, vetoed 120 and let two
bills become law without his signature. The Governor had 30 days to act on bills passed by the
Legislature on or after August 20, 2012; before that date, the Governor had 12 -days to act. This year,
77% (767) of bills acted on were in the 30 -day period.
The District actively monitored or engaged in direct advocating on over 47 bills this year. Many of
those bills were 2 -year bills that were introduced in 2011 and did not move through the legislative
process, but were eligible for action in 2012. We will highlight only a handful of bills below on which
the District was active.
MEMORANDUM
October 30, 2012
Page 5
2012 Human Right to Water Bill Package
The first Human Right to Water bill package was introduced in 2011, the first year of the legislative
session. The package included six bills: AB 685 (Eng) relating to human right to water, AB 938 (V.M.
Perez) relating to language access on public health notifications, AB 983 (Peres) relating to access to
clean up and abatement funding, AB 1187 (Fong) relating to Drinking Water Plan, AB 1221 (Alejo)
relating to Drinking Water State Revolving Fund, and SB 244 (Wolk) relating to General Plans. The
Governor signed four of those bills into law last year --AB 938, AB 983, AB 1221, and SB 244 --
stating that "clean drinking water is a basic human right' and that "protecting the water we drink is an
absolutely crucial duty of state government." AB 685 and AB 1187 failed to roach the governor's
desk, becoming 2 -year bills.
This year, AB 685 was taken up for another attempt ;at passage as part of the 2012 Human Right to
Water bill package, which included four newly introduced bills. We monitored the following bills from
the 2012 package on behalf of the District:
AB 685 (Eng) Human Right to Water - would establish a human right to water as a state policy
priority to ensure that all Californians have access to safe, affordable, and accessible water for
human consumption, cooking and sanitary purposes. This bill was first introduced in 2011. EVWD
took an "oppose unless amended" position on the: bill unless it was amended to apply only to state
agencies - which would reflect the intent of the sponsors (i.e., that the State Water Board and
Department of Water Resources have not done enough to funnel state money into correcting
contaminated water wells and small community water systems). This approach would protect local
agencies against imposition of such a policy, protecting local rate setting authority and service
extension statutes, among others. A coalition in opposition to AB 685 quickly formed, which
included the Association of California Water Agencies, California Chamber of Commerce,
California Farm Bureau Federation, Desert Water Agency, East Valley Water District, El Dorado
Irrigation District, Friant Water Authority, Kings River Conservation District, Kings River Water
Association. Valley Ag Water Coalition and Western Growers Association. AB 685 easily cleared
the Assembly, but ultimately was held in the Senate Appropriations Committee in August 2011.
The bill was amended in January 2012 to clarify some of its provisions, but those changes did not
address opposition concerns. Rumors surfaced in early August 2012 that AB 685 proponents
were pressuring the Senate Appropriations Committee to pass the bill. ACWA asked Reeb
Government Relations to assume leadership of the opposition coalition. An updated opposition
letter was sent to the committee and Bob Reeb met with the committee and Republican caucus
consultants. On August 21, and with notice only appearing on that date, AB 685 passed the
Senate Appropriations Committee with a 5-2 vote. The bill was amended to limit state liability for
expenditures beyond typical state revolving fund appropriations. Despite opposition efforts, the bill
quickly passed the Senate Floor on a 22-16 vote. The coalition began working the Assembly Floor
and attempted to tie action on AB 685 to related two-thirds vote legislation. That effort ultimately
failed, but based on the recommendation of Reeb, opponents approached Assembly Member Eng
about placing a letter in the Assembly Daily Journal that contained the essential elements of
amendments that had been sought by opponents. Obtaining a letter to the Journal would establish
a record of the authors intent, and therefore supplement the legislative history of the bill.
MEMORANDUM
October 30, 2012
Page 6
Reeb drafted the letter, the essential elements of which included statements that the author did
not intend for his bill to alter existing policies or regulations relating to the granting, administration
or enforcement of water rights; and that it is not the author's intent that Section 106.3 alters
existing statutory requirements applicable to public water systems, including:
(1) statutorily -mandated procedures to terminate water service (i) for nonpayment of water bills
or (ii) for any violation of a rule or regulation adopted by a public water system or regulatory
agency, (2) compliance with any applicable water quality requirement established pursuant to
federal or state law, (3) compliance with any water planning process set forth in the Water
Code, including but not limited to Water Code Sections 10608-10608.64, the Urban Water
Planning Management Act (Water Code Sections 10610 et seq.), the Agricultural Water
Planning Management Act (Water Code Sections 10800 et seq.) and Water Code Sections
10910-10915); (4) compliance with any statutory requirement pursuant to the California
Environmental Quality Act (Public Resources Code Sections 21000 et seq.); (5) compliance
with any statutory requirement pursuant to the Cortese -Knox -Hertzberg Local Government
Reorganization Act of 2000 (Government Code Sections 56000 et seq.); (6) declaration of a
water shortage emergency pursuant to Water Code Sections 350 et seq.; and (7) compliance
with any requirements pertaining to the Public Utilities Commission regulation of water utilities
pursuant to the Public Utilities Code.
Although the opposition coalition would have preferred that provisions related to these statements
be amended into the bill, the letter to the Assembly Daily Journal will provide value in terms of
litigation or changes in state policies or regulations that might result from the enactment of the bill.
AB 685 cleared the Assembly Floor on a 51-28 vote. The bill was signed into law September 25
(Chapter 524, Statutes of 2012).
• AB 2238 (Peres) Public water systems: drinking water — would expand access to safe and
affordable water and wastewater treatment services by promoting the consolidation and merger of
small community water systems that serve existing low income communities. EVWD took an
..oppose unless amended" position to this bill. The District objected to three provisions in AB 2238,
including one that would require a local agency formation commission (LAFCO) to
comprehensively assess various alternatives for improving efficiency and affordability of
infrastructure and service delivery for drinking water and wastewater services. The March, 29,
2012 version of AB 2238 would have deleted that requirement whenever the commission or
executive officer of the commission made a written determination that the assessment was not
reasonable under the circumstances. The exception was important in that it would be a waste of
limited commission time and resources to assess alternatives in every area of a county. Moreover,
it is unlikely that commission staff will have the experience and expertise to conduct such an
assessment. Unfortunately, the amendment gained on March 29 was later reversed. The bill was
subsequently amended twice again to address the District's concerns, at which point a letter was
sent on behalf of EVWD removing opposition. The bill passed the Assembly floor, on May 31, on a
48-25 vote, and was referred to the Senate Environmental Quality Committee for consideration.
The bill was gutted and amended on August 24 to delete the previous version of the bill and
replaced with language that would expand actions available for emergency funding from the
Emergency Water Grant Fund (ECWGF), and define, for purposes of ECWGF, "public health
emergency" to include: (1) a public water system that serves a severely disadvantaged community
MEMORANDUM
October 30, 2012
Page 7
that lacks the technical or financial capacity to deliver potable water or has applied for specified
funding; and (2) the disruption or contamination of drinking water due to natural disasters. The
bill, as amended, would also have cap funding for emergency actions for an alternative water
supply at $50,000 per public water system per public health emergency, and requires Department
of Public Health (DPH) to post on its Web site Safe Drinking Water State Revolving Fund
(SDWSRF) funding information regarding small community water systems serving disadvantaged
and severely disadvantaged communities. The D strict did not take a position on this new
amended version.
AB 2238 died in the Senate Appropriations Committee, after failing to meet the August 31
deadline pursuant to Joint Rule 61 (b)(17) — last clay for any bill to be passed.
Delta Legislation
Efforts to stall progress of the Bay Delta Conservation Plan (BDCP) continued this year with the
introduction of three bills, AB 2000 by Assembly Member Alyson Huber (D -Lodi), and AB 2421 and
AB 2,422 by Assemblymember Bill Berryhill (R -Ceres). The District joined a coalition in opposition to
the bills.
AB 2000 (Huber) Sacramento -San Joaquin Delta - would have required the Department of
Water Resources (DWR) to withdraw from its existing amended Memorandum Of Understanding
(MOA) with the export water agencies funding the planning of the Bay Delta Conservation Plan
(BDCP) and the U.S. Department of Interior Bureau of Reclamation (Reclamation), and to enter
into a new MOA only if a list of requirements were: met, including giving the Delta counties
decision-making authority over BDCP implementation; that BDCP evaluate non -diversion
alternatives; and require an independent review of the science behind BDCP. Further, the bill
would have appropriated all the remaining levee improvement funding frorn Propositions 84 and
1 E, to DWR, without the benefit of an economically -based risk reduction and expenditure strategy.
The District took an 'oppose" position on this bill, questioning the wisdom and legality of the
provisions in AB 2000 that would require DWR to abandon the existing funding agreement during
the final months of the planning process. EVWD argued that AB 2000 would disrupt the BDCP
process and delay it for years, if not indefinitely, and threaten a process adopted in the 2009 Delta
Reform Act that created a path towards new Delta Conveyance and ecosystem recovery.
The bill failed passage on the Assembly Water, Parks and Wildlife Committee on April 24, with a
2-7 vote.
• AB 2421 (Berryhill, Bill) Bay Delta Conservation Plan - would have required an independent
third party to conduct a cost -benefit analysis for any project being submitted by the Bay Delta
Conservation Plan (BDCP) to the Delta Plan.
The District took an 'oppose" position on this bill stating that the bill was redundant and
unnecessary. EVWD, along with the coalition in opposition, argued that the legislature had already
adopted safeguards for new Delta conveyance that it deemed prudent back in 2009. Chapter 8 of
the draft BDCP outlines implementation cost estimated over the proposed 50 -year term of the
Plan, including the costs related to each of its primary components. Economic impacts of the
MEMORANDUM
October 30, 2012
Page 8
BDCP and the costs of alternative conveyance and/or habitat restoration options in the Delta will
be analyzed as part of the BDCP development and environmental review process, a process
which is still ongoing and - as announced by the California Resources Agency on May 3 - will be
delayed. In addition, the California Resources Agency has commissioned a full and
comprehensive analysis of the habitat and conveyance benefits under BDCP. The benefits
analysis is anticipated for release within the month. The funding source for the cost/benefit
analysis called for in AB 2421 was not identified. The public water agencies that are funding the
development of the BDCP and the environmental review were extremely concerned that the
burden for funding the analysis in AB 2421 would fall to them. Over the past six years, those same
public water agencies have invested over $150 million of water ratepayer funds for the planning,
development and scientific analysis behind BDCP.
The bill narrowly passed the committee and was sent to the Assembly Appropriations Committee.
The latter committee moved AB 2421 to its Suspense File on May 9, where it was held under
submission. The bill died in committee failing to meet the May 25 deadline for bills to be referred
to the floor.
AB 2422 (Berryhill, Bill) Western Delta Intake Concept - would have directed the Department
of Water Resources (DWR) to expedite an evaluation and feasibility study of the Western Delta
Intakes Concept. Under the bill, if DWR were to determine the plan was "feasible," it would have
been directed to include recommendations regarding specific facilities to be constructed and
identify potential funding sources for implementation of the plan.
The District took an 'oppose" position on this bill, stating that various combinations of water
conveyance configurations, capacities, operations, and habitat restoration, and their effects on
biological resources and hydrology were already being evaluated; and that to throw yet another
variation of an alternative into the BDCP process would unnecessarily divert attention and
already -limited resources.
The bill narrowly passed the committee and was sent to the Assembly Appropriations Committee.
The latter committee moved AB 2422 to its Suspense File on May 9, where it was held under
submission. The bill died in committee failing to meet the May 25 deadline for bills to be referred
to the floor.
Metal Theft:
Metal theft continues to plague utilities and rural California as the price of certain metals continues to
make theft attractive to thieves. The theft of metals has devastated both public and private property
and has harmed critical public infrastructure, making it difficult to deliver essential utilities to
customers. Moreover, the theft of certain metal devices can seriously threaten public health and
safety. While several laws have been enacted to curb metal theft, it is still prevalent throughout
California. Several bills were introduced this year to address metal theft and strengthen current law.
We tracked the following bills on behalf of the District.
• AB 1971 (Buchanan) Theft: junk, metals, and secondhand materials - would increase the
maximum fine for junk and second-hand dealers who knowingly purchase metals used in
transportation or public utility services without due diligence from $250 to $1,000, and clarify that,
MEMORANDUM
October 30, 2012
Page 9
for purposes of the vandalism statute, "damages' includes damage caused to public transit
properties and facilities, public park properties and facilities, and public utilities and waiver
properties and facilities, in the course of stealing or attempting to steal nonferrous material, as
defined in Section 21608.5 of the Business and Professions Code.
EVWD took a support position on this bill. The District argued that by stiffening the penalties for
receiving, without due diligence, metal objects that are normally used by a water utility, and
therefore likely to have been stolen, AB 1971 would create a greater deterrent to wrongdoers and
increase the incentive for junk dealers to exercise greater care when purchasing metal objects.
The bill passed the Senate Floor on a 33-0 vote and the Assembly on a 76-0 vote. AB 1971 was
signed into law by Governor Brown on July 10 (Chapter 82, Statutes of 2012)
• SB 1045 (Emmerson) Metal theft: damages - would prohibit a junk dealer or recycleir from
possessing a reasonably recognizable, disassembled or inoperative fire hydrant, manhole cover
or lid, or backflow device or connection to that device without a written certification on the
letterhead of the agency or utility that owns or previously owned the material certifying that the
entity has sold or is offering the material for sale and that the person possessing and identified in
the certificate is authorized to negotiate the sale of the material. Under the provisions of this bill,
junk dealers and recyclers caught with the specified materials, and without the proper paperwork„
would be civilly liable for actual damages, and also for exemplary damages of three times the
agency's or utility's actual damages, including they value of the material, the cost of replacing the
material, labor costs, and the cost of repairing any damage caused by the: removal of the material,
unless the court determines that the extenuating circumstances do not justify awarding exemplary
damages.
EVWD took a "support" position on this bill. The District argued that the civil liability provisions that
would be enacted by SB 1045 would serve as an additional deterrent for the theft of these
materials. SB 1045 passed the Assembly Floor on a 77-0 vote and the Senate Floor on a 31-0
vote. SB 1045 was signed into law by Governor Brown on September 19 (Chapter 393, Statutes
o12012).
• SB 1387 (Emmerson) Metal theft - would prohibit any junk dealer or recycler from possessing a
fire hydrant, fire department connection, manhole cover or lid or any part of that cover or lid, or
backflow device or connection to that device without written certification on the letterhead of the
agency or utility that owns or previously owned the material and that the entity has sold or is
offering the material for sale, and that the person possessing the certificate and identified in the
certificate is authorized to negotiate the sale of the material. The bill would make the violation of
this prohibition punishable as a misdemeanor, as well as possessing any of the above listed
items, knowing that they were stolen, punishable by an additional fine of up to $3,000.
EVWD took a "support" position on this bill. The District argued that SB 1387 would eliminate the
attractiveness of manhole covers, backflow devices, and fire hydrants to metal thieves as there
should no longer be a buyer for these stolen items. The bill passed the Assembly Floor on a 77-1
vote and the Senate Floor on a 38-0 vote. SB 1387 was signed into law by Governor Brown on
September 27 (Chapter 656, statutes of 2012)
MEMORANDUM
October 30, 2012
Page 10
Environment: Proposition 84 and Groundwater Cleanup Projects
The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection
Bond Act of 2006 (Proposition 84) makes $60 million available to the California Department of Public
Health (DPH) for the purpose of loans and grants for projects to prevent or reduce contamination of
groundwater that serves as a source of drinking water. The Act requires the department to require
repayment for costs that are subsequently recovered from parties responsible for the contamination.
Current law requires DPH, in collaboration of the Department of Toxic Substances Control and the
State Water Resources Control Board, to develop and adopt regulations governing the repayment of
costs that are subsequently recovered from parties responsible for the contamination of groundwater.
AB 467, by Assemblymember Mike Eng (D -Monterey Park), would instead require DPH, in
collaboration with those agencies, to develop guidelines governing this repayment. The bill would
authorize the department to enter into an agreement with a grantee that would require the grantee to
attempt to recover the costs from responsible parties and would allow grantees to utilize the
repayments to fund activities authorized in the agreement. The bill would also make a declaration
concerning the utilization of those repayments. EVWD took an 'oppose unless amended" position on
the bill, objecting to the provision in AB 467 that authorizes DPH to require a grantee to take
appropriate action to attempt to recover the costs of cleanup from the parties responsible for the
contamination.
In the decade of the 1990s, California public water systems were forced to address groundwater
contamination from leaking underground storage tanks that allowed Methyl Tertiary -Butyl Ether
(MTBE) to enter groundwater that serves as a source for drinking water. The Association of California
Water Agencies (ACWA) worked with Senator Byron Sher on legislation to ban the chemical additive
and to establish a state fund to assist public water systems with drilling new wells or purchasing
replacement water. The source of funding came from the Leaking Underground Storage Tank (LUST)
Cleanup and Abatement Account. During the course of legislative debate over the use of funds from
the latter account, Senator Sher was forced to accept an amendment that required public water
systems to pursue cost recovery from potentially responsible parties. Any funds that were captured
were to pay back the LUST monies provided to the water system.
In the several years that followed enactment of the Sher legislation, it became apparent that (1) the
cost for most local agencies to pursue cost recovery approached or exceeded the total amount of
state financial assistance provided, and (2) many small- and medium- size agencies were not
applying for state financial assistance due to the cost recovery requirement. ACWA again approached
Senator Sher to address this concerns as what was happening in the field was not consistent with the
intent of the Legislature that local agencies access state financial assistance to rapidly replace
contaminated drinking water supply. Subsequent negotiations placed a limit on the cost recovery
mandate, allowing a local agency that received less than $1 million in state funding to forgo the
mandate.
In opposing AB 467, EVWD argued that by authorizing DPH to require a grantee to attempt to recover
the costs to remediate contaminated groundwater from responsible parties, the bill would repeat the
unintended consequences experienced with state funding to assist local agencies address MTBE
MEMORANDUM
October 30, 2012
Page 11
contamination. Currently, while Proposition 84 requires a local agency to repay the state should costs
be recovered, it does not mandate a local agency to pursue the cost recovery.
On May 23, 2012, the bill was amended to address the District's concerns, by deleting provisions
from the bill that would have required the grantee to take appropriate action to recover the costs of
cleanup from the parties responsible for the contamination. Based on this amended version, EVWD
removed its opposition to the bill. AB 467 the Senate Floor on August 22, with a 38-0 vote, and the
Assembly Floor on August 24, with a 77-0 vote. The measure was vetoed on September 25 by
Governor Brown, who stated:
"This bill would allow recipients of Proposition 84 groundwater clean-up funds to leverage
those finds by removing the requirement of having to pay back those state funds when they
recover funding from parties responsible for the contamination, if they used the recovered
funds for continued clean-up of their groundwater. I support the leveraging of all available
funding by ensuring that recovered funds are effectively used in the jurisdictions that recover
them. Unfortunately, the structure that was developed is cumbersome and inefficient. I am
directing the Department of Public Health and the Department of Toxic Substances Control, to
once again work with the Legislature to devekrp a more streamlined way to reinvest these
funds."
Wells: Rep_grtsL Public Availability.
SB 1146, by Senator Fran Pavley, would require DWR to make well completion reports for water
wells available to the public. Well reports are a record of the drilling and construction of a
groundwater well. They demonstrate that the well was properly constructed. Well completion reports
(or "logs") include the location of the well, the depth of the well, the type of soils encountered, and
depth to water. According to Senator Pavley: "These reports contain critical information for
groundwater managers, consulting hydrologists, academics, and others interested in the geology and
hydrologic characteristics of groundwater basins. Unfortunately, those who would benefit from this
information cannot have access to it."
E.VWD disagreed with the author, stating that persons who require access to well reports have
access to those reports by way of any government agency or for the purpose of studying groundwater
contamination. The District took an "oppose unless amended" position on the bill, arguing that SB
1146 went far beyond the concerns expressed by the Senator, making well completion reports
available to the public in general.
Reeb Government Relations grew the opposition coalition between the Senate policy committee
hearing and the Senate Floor, building a coalition tha': consisted of the California Bottled Water
Association, California Groundwater Association, California Narcotics Officers Association, Central
Basin Water Association, Coachella Valley Water District, Desert Water Agency, East Valley Water
District, Friant Water Authority, International Bottled Water Association, Kern County Water Agency,
Kings River Conservation District, Kings River Water Association, Newhall County Water District,
Orchard Dale Water District, Rowland Water District and Valley Ag Water Coalition.
Amendments were sought by key Democratic Senators on behalf of the coalition to limit the:
disclosure of well log reports to certain professionals who have the education and expertise to utilize
MEMORANDUM
October 30, 2012
Page 12
the information contained thereon for the purpose of conducting studies. The author rejected the
amendments, arguing that accepting the amendments would guarantee a veto by the Governor. Bob
Reeb quickly contacted DWR staff to ascertain whether such a message had been delivered to the
author; no such message had been delivered. Nevertheless, the author refused to accept
amendments to the bill. That refusal enabled a sufficient number of Democratic Senators to vote "NO"
or abstain from voting and the bill failed passage on the Senate Floor on May 31, with a 19-16 vote.
EVWD an Effective Advocate on Behalf of its Taxpayers and Customers
This completes the fifth 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. Through these efforts, the District has been effective in defeating or amending legislation
that would further burden its ratepayers without benefit to the District.
Despite a challenging economy and the rising costs of providing water and wastewater services, the
District continues to communicate directly with legislators and the executive branch in an ongoing
effort to rein in the propensity to increase the size and scope of state government to the detriment of
local control, particularly in the public utility arena. The environmental community continues to press
for stricter water quality laws and regulations, greater water use efficiency, more restrictions on water
development and use, an increased reliance on renewable energy sources that has driven up the
cost of electricity in California—the list is a long one. East Valley Water District works diligently to
provide clean and affordable drinking water and efficient wastewater collection service to its
ratepayers all the while engaging in the legislative arena to preserve local decision making and to
ensure state laws and regulations are necessary and do not place undue cost burdens on its
ratepayers.
Reeb Government Relations was pleased to work this year with District staff and the District's grant
writing consultant in the drafting of a legislative and grant assistance platform. This effort follows on
successful efforts in the past to secure State funding for safe drinking water projects. We have been
successful in securing the support of the District's legislative delegation for past grant and loan
applications, including securing recent letters of support relating to the perchlorate groundwater
treatment project.
We look forward to working with the District on a visit to Sacramento early next year as the new 2 -
year legislative session gets underway. We anticipate meeting with the District's legislative delegation
and other legislators and staff to brief them on important activities that are being undertaken at East
Valley Water District.
BOARD AGENDA STAFF REPORT
East Valley Meeting Date: November 28, 2012
_ Water District Public Hearing: ❑
Discussion item:
Consent Item ❑
Clo<ed Session ❑
November 21, 2012
TO: GOVERNING BOARD MEMBERS
FROM: GENERAL MANAGER/CEO
SUBJECT: SCRAP METAL PROGRAM
RECOMMENDATION:
Staff recommends the approval of a Scrap Metal Recycling Program.
BACKGROUND/ANALYSIS:
As a public agency, East Valley Water District's serves as an example of environmental
stewardship and a leader in positive organization culture. In an effort to incentivize recycling,
encourage environmental stewardship and maintain employee morale, staff recommends that
the District promote scrap metal recycling by sharing the proceeds with the Employee Events
Committee.
During the course of business, the District collects scrap metal after, facility maintenance and
project Completions, that should be recycled and :an be redeemed based on the type and weight:
of the material. Staff has identified the need oP encouraging this activity, as it promotes an
efficient use of District resources and is environmentally responsible.
An additional benefit of a scrap metal recycling program could be to support the District's goal
of improving employee culture and moral by sharing the recycling proceeds with the Employee
Events Committee. Over the last six months, an Employee Events Committee has been
established to plan and coordinate events that promote employee unity, cooperation and
workplace satisfaction. Since forming in July 2012, the committee has successfully held monthly
events and been planning the Annual Employee Awards Banquet. The Committee has opted not
to solicit donations from vendors to fund the Awards Banquet, inspiring the organization of
several alternative fundraisers including the "snack shack" and competitions.
Sharing the proceeds from scrap metal collected will promote a more efficient use of District
resources and show additional support from the Board of Directors with regards to the
importance of maintaining employee morale.
Page I1
SR#0182
AGENDA DATE: NOVEMBER 28, 2012
SUBJECT: SCRAP METAL PROGRAM
STRATEGIC INITIATIVE:
Approving the Scrap Metal Program supports:
Strategic Initiative II - Create an Environment more Conducive to Efficient and Effective Public
Service and key performance objectives
Strategic Initiative III — District Resource Enhancement Efforts
REVIEW BY OTHERS:
This item has been reviewed by the Chief Financial Officer and Legal Council
FISCAL IMPACT:
Approval of this item has not fiscal impact. Proceeds for recycling are not considered on the
revenue projections or approved budget.
Respectfully submitted:
John Mura UV�
General Manager/ EO
Page 12
Recommended by:
BrianTompki
Chief Financial Officer
S R#0182
BOARD AGENDA STAFF REPORT
toEast Valley Meeting Date: November -118,2012
Water District Public Hearing: ❑
--- — Discussion Item: la
Consent Item ❑
Closed Session ❑
October 17, 2012
TO: GOVERNING BOARD MEMBERS
FROM: CHIEF FINANCIAL OFFICER
SUB_fECT: LETTER OF INTENT FOR COMPREHENSIVE EFFICIENCY AND
CONSERVATION MEASURES PROGRAM
RECOMMENDATION:
Staff recommends that the Board of Directors authorize the General Manager to execute a Letter
of Intent to allow Honeywell to perform an investment grade assessment for a comprehensive
Energy Efficiency and Conservation Measures Program.
BACKGROUND/ANALYSIS:
On July 23, 2012 the District began discussions with Honeywell for the purpose of identifying
energy and operational cost-saving measures that could be leveraged to modernize water
delivery infrastructure. Honeywell proposed an Energy Service Performance Contract (ESPC)
for the District to reach this goal. ESPC is a turnkey method that will enable the District to
achieve facility and infrastructure upgrades funded solely through energy and operational
savings, utility incentives and Federal grants. The District makes no capital outlay and the
operating budget completely funds the program. A major advantage of ESPC is that Honeywell
assumes the performance risk and financially guarantees the results of the program.
On August 21, 2012 Honeywell conducted preliminary surveys of all District facilities and
discussed potential energy conservation measures (ECMs) with staff. The preliminary energy
assessment performed by Honeywell identified fourteen (14) projects for a cost of $4.5 million
that could potentially provide over $350,000 of arnual savings. The annual savings will in turn
he used w pay off the $4.5 million financing that was provided to the District through
Honeywell, which means there would be no capital investment from the District.
At this point, the next step in the process is the execution of the Letter of Intent (LOI) between
Honeywell and the District. The LOI is the triggering mechanism for Honeywell to perform an
Investment Grade Assessment (IGA). The IGA wall provide a detailed scope of work developed
in collaboration with District personnel, including final costs and guaranteed savings numbers.
The outcome of the IGA is an executable contract for the implementation of ESPC program
Page I 1
S11#0180
AGENDA DATE: November 28, 2012
SUBJECT: LETTER OF INTENT FOR COMPREHENSIVE EFFICIENCY AND
CONSERVATION MEASURES PROGRAM
provided that Honeywell meets EVWD's program requirements, including the scope of work,
delivery of the financing vehicle, program cost and guaranteed savings.
REVIEW BY OTHERS:
This agenda item has been reviewed by Legal Counsel.
STRATEGIC INITIATIVE:
Authorizing the General Manager to execute the Letter of Intent with Honeywell supports:
Strategic Initiative II - Create an Environment more Conducive to Efficient and Effective Public
Service and key performance objectives
FISCAL IMPACT:
Executing the LOI is the commitment to participate in the Energy Efficiency and Conservation
Measures Program. The District is effectively giving Honeywell direction to proceed with the
Investment Grade Assessment to conduct the detailed engineering and program development.
The program costs associated with these services is estimated to be $150,000 which will be
borne by Honeywell.
However, as defined by the terms of the LOI, should EVWD elect not to enter into a Contract
for a final project with Honeywell, then EVWD shall reimburse Honeywell for its engineering
and program development costs. At that time, Honeywell will present an itemized listing of all
Assessment Grade Investment Grade Activities associated with the program development fee.
Respectfully submitted:
V� ti
John Mura
General Manager/CEO
ATTACHMENTS:
Letter of Intent
Project List
Project Schedule
Page 12
Recommended by:
rian W' om ns
Chief Financi Officer
SR#0180
Honeywell
Preliminary ECM List to Review w/ Client:
East Valley Water District (EVWD)
If Budget Allows, Include the f=ollowing ECMs in the IGA
East Valley Water District (EVWD)
ECM Name
ECM Descri tion
Some pumps have more efficient pumps and have higher pumping ground
1
Operate Most Efficient Clean Wells as
water. Change the control system to operate the most efficient pumps first
Lead Wells - Optimal Pumping Strategy
and most.
2A
Operate Most Efficient Pump Stations as
When two pumo stations pump to one pressure zone, one of the pump
2
the Lead Pump Stations - Optimal
stations is more efficient than the other. Maximize use of more efficient
Pum in Strategy
um stations -
_
Replace Older Pumps with New, More
Review the condition, age, and operating point of the current pumps to
£i
Efficient Pumps ... Replace or Shave
determine if new pumps or rebuilding pumps are warranted.
Impellers .. Adust Clearance
Demand charges in some rate schedules up 40% of the total bill.
4
Minimize Quantity of Pumps Operating to
Operating a lanae motor for only a few hoursrs eachh month is costly. Program
Reduce Demand Charges
e
SCADA to increase load factors.
Peak electrical rates are two to three times more costly than off peak rates.
5
Operate Pumps during Off Peak Hours
Use pumps off oeak as much as possible.
"You can't save what you don't know". Install E -Mon metering equipment on
Install Pressure Sensors and Power
each 100+ hp motor, to develop monthly reports for the most efficient
E.
Monitoring Equipment at Large Motors to
pumping systerns, which will also report when pumps and motors are "going
Report W -to -W Efficiency on SCADA
bad'
_
Some wells hare unnecessary restrictions in their dscharge piping.
7
Remove Restrictions from Well Piping
Examples are Well 24A and 107. Remove these restrictions for an energy
Install Capacitors to Reduce Power Factor
SCE has power factor charges. Review installing capacitors at some motors
E,
C_har es
to reduce power factor charges.
_
Replace Cla-Vals used as Check Valves
Cla Vals are globe valves that have high flow losses. Replace Cla Vals used
q
wi-h Flow Resistance Check Valves
as check valves, with till check valves to reduce flow losses.
Cla Vals have high flow losses, even when fully open. Review using a three
10
Replace Cla Val with Hi Performance
way valve (high performance butterfly valves) to reduce flow losses going to
Butterfly Valve at WP 107
the treatment equipment.
Review current electrical rate schedules and recommend lower cost rate
11
Change to Lower Cost Rate Schedules
schedules based on new operating strategies.
_
The service life for SCADA telemetry equipment (radios) is 7 years. The
12
Install New SCADA Radios
SCADA telemery equipment has outlived its service life. Replace SCADA
radios.
13
Install Automatic Demand Response
Install an ADR system to take advantage of lower rates from the local utility.
(ADR S stem
Install VFDs at Small Booster Stations
Water Plants 34, 59, and 101 have hydopneumatic tanks and are having
14
wdh Hydro Tanks
operational challenges. Install VFDs for easier operations
_
Honeywell can `inance energy efficiency upgrades at the new office building
1 ��
Energy Efficiency Upgrades at New Office
as part of the performance contract, and still meeting savings guarantees
Building
over 15 year financing.
If Budget Allows, Include the f=ollowing ECMs in the IGA
East Valley Water District (EVWD)
1 112 012 0 1 2 Page 1 of 1
ECM Name
ECM Description
The service life for switchgear is 40 years. Some of the switchgear has
1A
Install New Switchgear
outlived its service life. Review replacing older switchgear.
Ins talt 4 Mgal Reservoir and 5,300 LF of
Pumping during off peak hours requires adequate storage. Increase storage
2A
24' DIP at S Curve Site on Greenspot
will assure mor! off peak pumping. This measure includes a mile of 24"
Road
piping installed at the side of the road.
1 112 012 0 1 2 Page 1 of 1
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0 East Valley
Water District
3664 East Highland Avenue, Suite 18, Highland, CA 92346 Serving Our Community for Over 50 Years
PC). Box 3427, San Bernardino, CA 92413
Matt I e Vesque
Chairman of the Board
James Morales, Jr
Letter of
Intent Vice Chairman
November 20, 2012
Mike Kempa
Erergy Project Development
Honeywell International Inc.
13477 Danielson St
Pnway, CA 92064
Kip E_ Sturgeon
Board Member
George E. "Skip' Wilson
Board Member
Ben C. Coleman
Board Member
John J. Mura
General Manager/CEO
Secretary
Subject: Letter of Intent Regarding Comprehensive Efficiency and Conservation Measures
Program
Dear Mike:
This letter is to confirm that East Valley Water District (EVWD) intends to proceed with
Honeywell, Inc. in finalizing a contract for energy efficiency, operational and facility
improvements of EVWD-owned facilities and equipment. The purpose of the contract is for
Honeywell to offer a turn -key program for design, implementation and financing, utilizing 3rd
party financing vehicles such as a tax-exempt municipal lease instrument, for capital
improvements resulting in improved energy and operational efficiency from EVWVD owned
assets, conservation savings, and operational improvements for EV`ND.
This letter of Intent shall be effective for 180 days or until superseded by an executed contract
between the parties. During the time this Letter of Intent remains in effect, EVWD shall not
negotiate with any party other than Honeywell concerning the comprehensive efficiency and
conservation measures described in this lette-. Additionally, Honeywell will undertake certain
activities including, but not limited to, an investment grade assessment and Contract
doamrents creation for the following Scope of Services:
1. Option "A" list was chosen and is attached to this document as attachment A
"Investment grade assessment," as used herein means the work outlined in attachment "B"
Program Development Schedule and any additional work performed by Honeywell to develop a
contract proposal to EVWD. EVWD intends to enter into a contract with Honeywell
International Inc., provided that (1) the EVWD Board determines that the project and proposed
financing are acceptable to EVWD; (2) cin be approved in compliance with California
Environmental Quality Act; (3) prior to entering negotiations with EVWD for a contract to
perform a project, Honeywell provides EVWD in writing all of the information and data
developed or considered by Honeywell in dete--mining whether the project is feasible and meets
Administration (909) 885-4900, Fax (909) 889-5732 Engineering (909) 888-8986, Fax (909) 383-1481
Customer Service (909) 889-9501, Fax (909) 888-6741 • Finance (909) 381-6463, Fax (909) 888-6741
too East Valley
Water District
the intent of this letter of intent, including reasonable detail (30% design) for all components of
the contract, and program cash flows and the opportunity cost of maintaining the status quo,
and (4) Honeywell develops a contract that meets all of the following criteria:
• The proposed project savings and/or additional revenue projections allow the project to
be paid for in not more than 12 years out of savings in energy and operational costs.
• The proposed project costs do not increase the total energy and operational expenditures
for the facilities above the level spent in 2012 beyond the adjustment for CPI.
• Honeywell financially guarantees the proposed annual energy savings under terms
mutually negotiated with EVWD.
• Honeywell arranges financing for the Projects on terms mutually negotiated with the
EVWD.
The proposed project Contract Documents will address the overall intent of this Letter
of Intent which is a project consisting of capital improvements paid for through energy
savings and operational savings.
The mutually negotiated contract will provide a detailed scope of work and document
energy savings guarantees.
• Other mutually agreed contract terms, provided that both Honeywell and EVWD
negotiate in good faith.
The project's final scope of work, to include all asset improvement measures, will be co-
authored and agreed to by both Honeywell and EVWD.
If Honeywell meets all of the requirements listed above, and EVWD decides not to enter into a
Contract for a final project with Honeywell, then EVWD shall reimburse Honeywell $150,000
for its engineering and program development costs. At that time, Honeywell will present an
itemized listing of all Assessment Grade Investment Grade Activities associated with the
program development fee.
Sincerely,
John Mura
General Manager
East Valley Water District
3564 E. Highland Avenue # 18
Highland, CA 92346