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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 12/12/2012East Valley Water District 3b94 HIGI II.AND AVE., SUITE #3Q, HIGHLAND, CA BOARD MEETING December 12, 2012 5:30 P.M. AGENDA "III 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 depa.-tmcntal investigation, will be considered by the Board of Directors". CALL TO ORDER PLEDGEOI ALLEGIANCE PUM-1C 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 `ircctors may BRIEFLY respond to statements made or questions posed. Comments are limited to three minutes pear speaker, • Pension Reform Update presented by Lieben Cassidy Whitmore AGENDA . This agenda contains a brief general description of each item to be considered. Exa_pt as orherw ke provided by law, no action shall be taker_ on any item not appearing on the following agenda I[ Iless the Board of Directors makes a determination that an emergency exists or that a need to take irunccliatc action on the item came to the attention of the District subsequent to the posting of the igeru!a. 1. Approval of Agenda 2 CONSENT CALENDAR - All matters listed under the Consent Calendar are considered by the Board of Directors to he routine and will be enacted in one motion. There will be no discussion of t'ncsc 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 ConscntCalcndar. a. Acccpt and file the Financial Statements for October 2012 b. Adopt Resolution 2012.22 and support the application submittal for the 2013 WaterSMART Water and Energy Efficient Grant c Accounts Payable Disbursements: Accounts Payable Checks #234771 through #234933 which were distributed during the periocl of November 28, 2012 through December 5, 2012 in the amount of $1,094,128.41. Payroll and benefit contributions for the period ended December 5, 2012 and included checks and direct deposits, in the amount o:: $334,836.81. Total Disbursements for the period $1,428,965.22 d. Directors' fees and expenses for November 2012 NEW BUSINESS 3. Adopt and file the audited financial statements for year ended June 30, 2012 REPORTS 4. General Manager/ Staff Reports 5. Legal Counsel Report 6. Oral comments from Board of Directors CLOSED SESSION 7. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54956.8] Property: Party Nvith whom District will negotiate: Party who will be negotiating on behalf of the District: Under Negotiation: 8. CONFERENCE- WITII REAL PROPERTY NEGOTIATOR [Government Code Section 54956.8] Property: Party with whom District will negotiate: Party who will be negotiating on behalf of the District: Under Negotiation: ANNOUNCEMENT OF CLOSED SESSION ITEMS ADJOURN 1192-241-01,1192 231 01 San Bernardino County State of California San Bernardino International Airport Authority John Mura Price and Terms of Payment 1191-251-02,1191-251-05,1191- 251-06 San Bernardino County State of California Potential Buyers John Mura Price and Terms of Payment PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet arc available for public inspection in the District's office located at 3654 L. Highland Ave, Suite 18, Highland, during normal business hours. Also, such documents are available on the District's website at www.castvallcy.ora subject to staffs ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability-rclatcd 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) SS5-4900 at least 72 hours prior to said meeting. BOARD AGENDA STAFF REPORT November 30, 2012 TO: GOVERNING BOARD MEMBERS FROM: GENERAL MANAGER/CEO SUBJECT: FINANCIAL STATEMENTS FOI: OCTOBER 2012 RECOMMENDATION: Staff recommends that the Board of Directors accept and file the attached financial statements. BACKGROUND/ANALYSIS: Revenue& Expenses Water sales were $192,250 over projection for October, during which the District sold 647.7 MG of water. Customer consumption for October 2012 was significantly higher (9.6%) than consumption during September 2011. Other District operating revenues were $18.250 over projection in October, and Sewer Treatment revenue, which is passed through to the City of SB was $6,578 under projection. 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Pagel Sales Volume by Month - Current Fiscal Year (with 2 previous yrs for comparison) Q 73 a u Z o g v Q m c N 0 LL --- 2010-11 — .2011-12 2012-13 (Est Nov - June) SR#0185 Meeting Date: December East Valley t4 12, 2012 Water District Public Hearing: ❑ Discussion Item. ❑ Consent Item Closed Session ❑ November 30, 2012 TO: GOVERNING BOARD MEMBERS FROM: GENERAL MANAGER/CEO SUBJECT: FINANCIAL STATEMENTS FOI: OCTOBER 2012 RECOMMENDATION: Staff recommends that the Board of Directors accept and file the attached financial statements. BACKGROUND/ANALYSIS: Revenue& Expenses Water sales were $192,250 over projection for October, during which the District sold 647.7 MG of water. Customer consumption for October 2012 was significantly higher (9.6%) than consumption during September 2011. Other District operating revenues were $18.250 over projection in October, and Sewer Treatment revenue, which is passed through to the City of SB was $6,578 under projection. 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Pagel Sales Volume by Month - Current Fiscal Year (with 2 previous yrs for comparison) Q 73 a u Z o g v Q m c N 0 LL --- 2010-11 — .2011-12 2012-13 (Est Nov - June) SR#0185 AGENDA DATE: December 12, 2012 SUBJECT: FINANCIAL STATEMENTS FOR OCTOBER 20122 Operating Expenses Water operating expenses were $195,861 under budget, and sewer operating expenses $8,635 under budget in October. Significant savings in the water department included Contracted Treatment, where costs of $24,310 were $72,960 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 $595,759. There was $595,759 spent on CIP projects during the month. This amount included $67,645 on the Plant 134 upgrade project, $229,036 on the Plant 143 new reservoir project and $251,370 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 item. ectfully submitted: C AA J n ura General Manager/CEO ATTACHMENTS: October Financial Statements Page 12 Recommended by: X k14�«r Brian ompkins Chief Financial Officer SR#0185 East Valley Water District Balance Sheet by fund - Unaudited October 31, 2012 RESTRICTED ASSETS Customer / Constr. Deposits Water Sewer 1,916,593 Capacity Fees Fund Fund _Totals ASSETS 672,081 96,366 768,447 UTIL.ITY PLANT - at cost: 12,374,220 199,036 12,573,256 Utility Plant in Service $126,001,027 $31,964,418 $157,965,445 Less: Accumulated Depreciation _ (39,702,971) (14,375,240) (54,078,211) 86,298,056 17,589,178 10:3,887,234 Ccnstruction in Progress 15,991,828 55,442 16,047,270 24,465,752 102, 289, 884 17,644,620 119, 934, 504 RESTRICTED ASSETS Customer / Constr. Deposits 1,803,751 112,842 1,916,593 Capacity Fees 320,172 35,978 356,150 Rate Stabilization Reserve 672,081 96,366 768,447 Construction Funds 12,374,220 199,036 12,573,256 Debt :;env ce Funds - Trust Accts 302,664 29,458,239 302,664 15,152,716 408,244 15,560,960 CURRENT ASSETS: Cash and Investments 20,355,664 4,110,088 24,465,752 Less: Restricted Cash and Investments 15,152,716 408,244 15,560,960 5,202,948 3,701,844 8,904,792 Accounts Receivable (net of allowance) 1,889,388 1,889,388 Interest Receivable 4,725 2,650 7,375 Assessments receivable 116,203 116,203 Other Receivables 65,929 65,929 Grants Receivable 1,782,079 1,782,079 Inventory 918,631 918,631 Prepaid Expenses _ 164,037 164,037 10,143,940 3,704,494 13,848,434 07 HER ASSETS Deferred financing charges 520,943 16,156 537,099 Property held for resale 751,842 684,725 1,436,567 Due from Other Funds 7,000,000 7,000,000 1,272,785 7,700,881 8,973,666 TOTAL ASSETS 128,859,325 29,458,239 158,317,564 Balance Sheet Page! 1 East Valley Water District Balance Sheet by fund - Unaudited October 31, 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 $29,575,000 1,985,485 3,969,578 7,000,000 (416,055) 42,114,008 CURRENT LIABILITIES PAYABLE FROM RESTRICTED ASSETS Sewer Fund $685,000 86,282 771,282 Totals $30,260,000 2,071,767 3,969,578 7,000,000 (416,055) 42, 885,290 Customer service deposits 1,704,751 1,704,751 Construction deposits 99,000 112,842 211,842 Accrued interest payable 120,732 2,862 123,594 406,988 1,924,483 115,704 2,040,187 CURRENT LIABILITIES Accounts payable 1,607,329 38,201 1,645,530 Accrued payroll and benefits 356,020 49,515 405,535 Compensated absences 406,988 160,949 567,937 Long Term Debt - amt due within one yr 982,940 75,000 1,057,940 Rate Stabilization Reserve 3,353,277 323,665 3,676,942 Unrestricted / Undesignated TOTAL LIABILITIES 47,391,768 1,210,651 48,602,419 EQUITY Invested in Utility Plant 79,839,941 17,698,255 97,538,196 Restricted: Capacity Fees 320,172 35,978 356,150 Designated: Rate Stabilization Reserve 672,081 96,366 768,447 Unrestricted / Undesignated 635,363 10,416,989 11,052,352 Income Year To Date 3,837,895 497,826 4,335,721 TOTAL EQUITY 81,467,557 28,247,588 109,715,145 TOTAL LIAB AND EQUITY 128,859,325 29,458,239 158,317,564 Balance Sheet Page 2 EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures -Unaudited October 31. 2012 OPERATING EXPENSES Source Of Supply Supervision and Labor 7,537 WaterFuud 51,224 0 SewerFund 0 Tota, 164,500 Overtime Labor Overtime Labor nrtober VTI nnoher nctober vTn VTn n,1 ,.tem 39,000 Actual Budget Actual 4ctual Budget Actua'. Actual Butlaet 2,869 466 0 Purchased Water 0 OPERATING REVENUES 0 0 0 0 0 200,000 839,205 Groundwater charge Water Sales 1459850 1,267600 6301,471 0 0 0 6,301,471 13,798,600 Water Meter Charge 369,035 366,000 1,432.444 0 0 0 1432,444 4.514,650 Sewer Collection System Charges 0 0 0 375.018 356.000 1,467,818 1,467 818 4,367.000 Sewer Treatment Charges 0 0 0 661,672 608.250 2492,930 2492.936 6.776,906 Service Initiation / Installation Chrgs 6.275 6,500 27,712 0 0 0 27.712 78,000 Collection Charges 26.940 11,500 102,417 5,910 0 20,318 122,735 138,000 Main Front Footage Fees 0 0 2.128 0 0 0 2,128 0 Permits & Inspection Charges 0 0 0 225 0 325 325 500 1.862,100 1,651,600 7,866,172 982,825 964250 3,981,391 11,847,563 29.673 658 OPERATING EXPENSES Source Of Supply Supervision and Labor 7,537 12,655 51,224 0 0 0 51,224 164,500 Overtime Labor Overtime Labor 115 3.250 2,324 0 0 0 2,324 39,000 4,082 Materials & Supplies 1,173 0 2,869 0 0 0 2,869 466 0 Purchased Water 0 0 0 0 0 0 0 200,000 839,205 Groundwater charge 0 0 0 0 0 0 0 208,680 0 North Fork/City Creek - Assesment 0 0 0 0 0 0 0 102,640 0 Maintenance 1,567 850 6.454 0 0 0 6,454 10,000 0 Water testing l Source ofc 5,437 13,050 54,094 0 0 0 54,094 156,600 Pumping Supervision and Labor 39,367 41,910 183.849 0 0 0 183,849 544.800 Overtime Labor 650 1,500 4.167 0 0 0 4,167 18,000 Materials & Supplies 4,082 1,500 13,764 0 0 0 13,764 18,000 Maintenance 466 13,500 31,937 0 0 0 31,937 165,200 Fuel and Power 137,477 150,000 839,205 0 0 0 839,205 2.100,000 Treatment Chemicals 16,334 14,000 76,500 0 0 0 76,500 168.000 CIP Labor Credit (1,111) 0 (2,870) 0 0 0 (2,870) 0 Total Pumping 197,265 222,410 1.146.552 0 0 0 1,146.552 3,014,000 Revenue/Expense Stmt Page 1 EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures -Unaudited October 31, 2012 Revenue/Expense Stmt Page 2 Water Fund Sewer Fund Total October October YTD October October YTD YTD Adopted Actual Budget Actual Actual Budget Actual Actual Budget Water & Wastewater Treatment Supervision and Labor 7,373 11,550 33,740 0 0 0 33,740 150,200 Overtime Labor 386 1,500 6,853 0 0 0 6,853 18,000 Materials & Supplies 169 3,500 6,850 0 0 0 6,850 42,000 Maintenance 14,373 5,000 14,612 0 0 0 14,612 120,000 Fuel and Power 8,633 12.500 46,038 0 0 0 46,038 250,000 Contracted Treatment 24,310 97,270 127,952 0 0 0 127,952 1,290,950 Contracted Treatment - City 0 0 0 601,945 608,250 2,493.204 2.493,204 6,776,908 Treatment Chemicals 2,899 23,000 16,039 0 0 0 16,039 357,000 General & Admin Expenses 1,378 7,400 1,378 0 0 0 1,378 89,000 CIP Labor Credit (666) 0 (3.819) 0 0 0 (3.819) 0 Total Treatment Expensees 58,855 161.720 249,643 601,945 608,250 2,493.204 2,742,847 9,094,058 Trans & DistributionfWastewater Collection Supervision and Labor 54,980 57,710 235,423 13.477 20,410 79,955 315,378 1,015,500 Overtime Labor 3,195 4,500 26,148 6 915 213 26,361 65,000 Materials & Supplies 27,350 23,350 91,327 1,605 3,000 5,008 96,335 316,000 Maintenance 36,939 21,750 129,636 34,236 13,500 35,731 165,367 420,000 CIP Labor Credit 0 (5,000) (2,110) 0 0 (457) (2,567) (40,000) Total Trans & Distribution/Wastewater Collection 122,464 102,310 480,424 49,324 37,825 120,450 600,874 1,776,500 Customer Accounts Supervision and Labor 19,464 25,078 94,098 19,044 25,078 92,778 186,876 652,000 Overtime Labor 2,721 2,500 11,573 2,721 2,500 11,573 23,146 60,000 Postage -Billing 5,269 4,430 20,633 5,269 4,435 20,633 41,266 106,500 Contract Services - Billing 1,893 1,790 7,195 1,893 1,790 7,195 14,390 43,000 Contract Svcs - Pmt Processing 7,156 6,480 26,175 7,156 8,480 26,175 52,350 182.500 Credit Checks / Collections 1,375 230 5 363 1,375 0 5,363 10,726 5,540 Cash Shan / Bad Debts (19) 0 (32) (19) 0 (32) (64) 3,500 Materials & Supplies 2,187 105 3,194 729 0 1,736 4,930 1,260 Total Customer Accounts 40,046 40,613 168,199 38.168 40.283 165,421. 333,620 1,054,300 Revenue/Expense Stmt Page 2 EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures -Unaudited October 31, 2012 Revenue/Expense Stmt Page 3 '✓eater Fund Sewer Fund Tole: October October YTD October October YTD YTD Adonled Actual Budget Actual Actual Budget Actual Actual Budget General & Administrative Sape,,,,un and Labor 115,259 106,336 466,431 59,798 61 788 253.110 719.541 2.172.000 Overtime Labor 349 1,385 1,144 194 700 752 1,896 25.000 Employee Benefits 142,479 138,574 536,669 56,932 56,942 194,923 731,592 2,346,172 CIPLabor /Benefits Credit (18,856) (10,175) (52.175) (3,019) (4,750) (12,893) (65,068) (172,000) Directors Fees and Expenses 5,350 7.400 16.274 5.350 4,935 16,274 32.548 148,000 Utilities B Telephone 8,042 7,128 35,930 3,379 3,106 15,229 51,159 124,450 Dues is Subscriptions 3,954 4,789 26,423 1,376 120 14,253 40.676 58.865 Office Supplies & Expenses 8,738 6,318 23,270 4,515 3,833 13,674 36,944 124,050 Postage 113 1,100 3,728 90 650 2,469 6,197 21,100 Office Equipment 4,892 28,416 25,700 3,658 5,871 18,629 44,329 184,275 General Plant Maintenance 13,016 14,467 57,107 717 1,415 4,389 61,496 190,565 Vehicle valet/Fuel 17,063 23,907 71,521 5,342 3450 31,958 103,479 335,700 Facilities Lease 8,893 9.240 44,020 6,047 6,325 29.843 73,863 186,750 Contractual Services 29,469 61,735 192,944 13,599 36,060 89,098 282,042 956,490 General Insurance 8,367 12,000 35,067 8,516 3,000 25,268 60,335 180,000 Professional Development 2,586 6,152 17,418 1,428 3.102 11.230 28,648 107,137 Employee Programs 603 1,140 1,806 203 0 741 2,547 27,850 Regulatory Fees 8 Compliance 1,943 2,500 5,786 8,154 835 8,247 14,033 60,000 Public Education/Outreach 1,902 3,545 4,033 1,268 735 2,159 6,192 50,300 Safety Equip/Emergency Ping 476 2,243 3,812 76 1,220 1.581 5,393 43,472 Total General & Administrative 354,638 428,200 1,516,908 177,623 189,337 720,934 2,237,842 7,170,176 Total Operating Expenses 789,197 985,058 3,678,691 867,060 875,695 3,500,009 7,178,700 22,990,454 ..,^ERATiNO 1INCOME 1,e7Y,903 666,542 4,187,481 115,765 88,555 481,382 4,668,863 6,683,204 Revenue/Expense Stmt Page 3 EAST VALLEY WATER DISTRICT Statement of Revenues and Expenditures -Unaudited October 31, 2012 Debt Service: Water Fund Sewer Fund Total CAPITAL OUTLAY / REPLACEMENTS October October YTD October October YTD YTD Adopted 394,167 Actual Budget Actual Actual Budget Actual Actual Budget NON-OPERATING ACTIVITY: 3,822 14,424 Interest on LT Debt 114,379 0 0 463.011 2.983 Revenues: 12,350 475,361 0 0 208,614 26.709 229,793 832.422 Interest Income 15,049 825 33,059 1,129 4,480 20,873 53,932 75,675 Other Income 9,659 1,375 23,061 0 1,375 0 23,061 33,000 Legal Settlements 0 0 320 0 0 0 320 0 Cooperative Agreements-Enernoc 0 0 3.761 0 0 0 3,761 44,600 Gain on Sale of Fixed Assets 7,920 0 53,220 7.920 0 7.920 61,140 0 32,628 2,200 113,421 9,049 5,855 28.793 142,214 153,275 Expenses: Debt Service: CAPITAL OUTLAY / REPLACEMENTS 2010 Bond Principal 93,750 229,192 367,500 6667 9,520 26.667 394,167 2,864,546 Capital Lease -Phone System 0 485 601 1,911 485 601 1.911 3,822 14,424 Interest on LT Debt 114,379 0 0 463.011 2.983 0 12,350 475,361 0 0 208,614 26.709 229,793 832.422 10.135 10,121 40.928 873350 2,878,970 CAPITAL EXPENDITURES: CAPITAL OUTLAY / REPLACEMENTS Water Company Stock Purchase 0 0 0 0 0 0 0 14,000 Office Equipment/Furniture 0 3,500 1,391 0 0 1,391 2,782 71,600 Computer Hardware/Software 0 0 26,709 0 0 26.709 53,418 136,700 Vehicles 0 15,000 0 0 15,000 0 0 30,000 General Equipment 0 0 0 0 0 0 0 93,200 Well Rehabilitation 0 6,250 0 0 0 0 0 75,000 Boaster Rehabilitation 0 4,900 0 0 0 0 0 59,000 CAPITAL PROJECTS - See Summary 566 672 0 1 638,956 29,087 0 58.858 1,697,814 2326 429 566.672 29,650 1,667056 29,087 15,000 86.958 1,754.014 3,205.929 EXCESS OF REVENUE OVER EXPENDITURES: 330,245 409,299 1,801,424 85,592 69,289 382,289 2,183,713 751,580 Add Back Capital Expenditures & Principal 660.907 259,443 2,036,467 36,239 25.121 115536 2.152003 6084,899 NET INCOME 991,152 668,742 3,837,891 121,831 94,410 497,825 4,335,716 6,836,479 Revenue/Expense Stmt Page 4 EAST VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM INCLUDING CAPITAL BUDGET FOR FISCAL YEAR 2012-13 Expenses updated through October 31, 2012 EAST VALLEY WATER DISTRICT Capital Improvement Program Page 2 Prior Current Projections Projects- By Type Years Year 2012-13 201344 2014-15 2015-16 2016-17 2017-18 Beyond Project Actual Actual Budget Year 2 Year 3 Year 4 Year 5 Year 6 Year 6 Totals Source of Supply Plant 150',% ells - 825,000 1,100,000 1925,000 1.0, er--one Wells (2) - - - - 3,300,000 330,000 Harmony oA'ells (4) (23,886 - - 4,400,000 4,376,114 Total Source of Supply Projects (23886) 825,000 1100,000 7.700,000 9,601,114 Pumping Facilities Plant 9- Rehab Forcbey Ec Booster Station 305,000 - - - 301,000 Plant 40-Inrer[olpper Zone Transfer 2,221 620,000 - - - 622221 Plant 127 Lower to Inter Zone Transfer 300,000 - 300000 Plant 12 Replace Boosters '\\ ell 510,000 40,000 - 1020000 Plant 134 1 Aper to Canal =ane I ransler 310,000 1120,000 - - 630000 Plant i9 Intel to pper-one Transfer - - 2200,000 22017000 Plant 25 - hs[er m l'plxr Zone Transfer 400,000 400,000 Plant 143 Inter to Opper-.one Transfer 331,959 448,244 2920,000 560,000 - - 1,400,000 926020 Total Pumping Projects 334,180 448,244 3,755,000 1,390,(VO 810,000 400,000 2.200,000 1140,000 10,737,425 Treatment Facilities Plant 134 I ipgrade Technology 9,554,346 429,836 1.204,469 - 11,188,651 Plant 134- Membrane Replacement - - - 460,000 4601000 Plant 134 Bridge Replacement 23 229 648,468 671,697 Plant 150 Lmver Zn Perch I teat Phl 3051,054 6h52 1,510,000 7320,000 7324000 1310,000 20,717,707 Plant 150 Loocer=n Perch !Teat. Ph 2 - 5,050,000 285o000 7900000 Plant ls2 - Inter :n Nech Treat - - 19,160,000 19J60,000 Iota] Treatment Projects 12,60 400 459,717 3,362937 7,320,000 7,520.000 6,360000 2,850,)00 19,620,000 60098,054 Transmission & Distribution System 6111 8:10 PIpr11nC PIanL, 11 rc 12 w 110 131985 505000 6;6,985 I iv, [)ak Main Replaccmcnt h)P,119 651 249000 100,000 - 55;770 linrlan I ane Main Replacement 7,957 lb0000 - 167957 6thSt30 Pip,hine-PIPit to) PI40 7811,798 2178 3.960,000 4342976 6t11SL30 Pi1xhne 11140 to PI 143 1,300000 11100,000 5;4001000 7]00,000 9th SL 12 Pipeline - Del Rosa to Sterling 700,000 700,000 AMR Metei Replacement Program bi397 6) 0194 980,000 1,000,000 1,0011.000 1000000 1.004000 1000000 0608091 Plant 59 Rccoating 232900 - 28'_0011 Mint 14', Wing Inter =oneStorage10,700000 1070,000 Rescn olr 1 �reenspot Rd S Cumc - 10,700,000 107000110 Resen olr Seven 0,11" Dam Rd - 10 700 000 10.70,000 Reloc. of Facilities for Other,4gencics 136258 2� 358 250000 150,000 154000 150,000 150000 150,000 1,101.616 Bascli ne Gar do ns 194340 100 5.198,933 5393,873 Total Trans C'¢ Distribution Projects 1925,354 600981 11,180,933 1150,000 I_>50,000 3150.000 21511P00 1,15,000 37,500,000 59.7' .263 Page 2 FAST VALLEY WATER DISTRICT Capital Improvement Program Page 3 Prior Current Projectw., 11 Projects- Ry Tepr Years year 2012-13 2013-14 2014-I9 2015-16 201b-17 2017 I8 Beyond Project Heroin ,taal Budget ycar 2 Sonr3 `1 nu,4 `.'cart Yearb `carb Total, General Projects G191mplemrntation 629770 43.467 100,000 773236 Headytn_rtea building 28.115 11323 1500,000 14600.0110 - 16153.438 Total General Projects 651.885 69.790 LbW,000 14 ti00 00") 1&9",674 Wastewater Collection System SeVO e r Sys to m 5 t ud res' Fla n ni ng 3.089 56,244 250,000 - - - 109,33, ,Sesser Main lining - 2251100 221000 225000 221000 227,000 225,000 1300,001[ 3,150,000 Del Rosa ]fain Replacement 23SWC 038000 - - - 876,000 I anl<ershim Main Replacement 450,000 - - - - 450,000 Total Wastewater Collection Projects 3,089 56,244 1.163 000 863 000 221000 225000 225,000 225,000 1800.000 4,785,333 TOTAL CIP PROJECTS 15,125,909 1,690,090 21,061,870 25,323,000 9,805,0(13) 70,131000 8,250,000 2,475,000 bt,020,W0 161885,868 Miscellaneous / Developer Projects Dec. Water Facilities lReimb by Fees) 237,345 5,110 241455 DesiSewer Facilities (Relmb by Fees) (912 i) 2,613 (6512) '010 P1oodClean Up- EV WD Facilities 107,961 167,561 TOTAL \11SC / DEVELOPER PROJECTS 395781 7,723 403,504 Total Capital Projects 11.521,690 1,697,813 21,061,870 25323,Ml 9,801000 10,135.0(10 8,2511,0101 2,477000 68,020,000 162,289,373 Page 3 BOARD AGENDA STAFF REPORT Meering Date: December 12, 2012 East Val ley Public Hearing: E7 Water District Discussion Item: ED S Consent Item Closed Session ❑ November 30, 2012 TO: GOVERNING BOARD MEMBERS FROM: GENERAL MANAGER/CEO SUBJECT: 2013 WATERSMART WATER AND ENERGY EFFICIENCY GRANT APPLICATION uCOMMENDATION: Staff recommends the adoption of Resolution 2012.22 and support the application submittal for the 2013 WaterSMART Water and Energy Efficiency Grant. BACKGROUND/ANALYSIS: In October 2012, East Valley Water District Board of Directors adopted the 2012 Grant Strategics that identified potential funding sources for specific projects and programs. One funding method identified in that document was the WaterSMART Water and Energy Efficiency Grant Application. The call for applications for the highly competitive Fiscal Year 2013 WaterSMART Water and Energy Efficiency Grant was released in November 2012, with a submittal deadline of January 17, 2013. Based on adopted Grant Strategies document, staff is currently working with Blais &r Associates to prepare an application request to fund up to $750,000 of the AMR Meter Replacement Program. A requirement of the application is an official resolution 2012.22, 1) authorizing the General Manager/CEO to submit an application for the 2013 U.S. Bureau of Reclamation's (USBR's) WaterSMART Water and Energy Efficiency Grants (Grant) for the East Valley'Water District AMR Meter Replacement Project, up to the maximum grant amount of $750,000 million, and to execute all agreements related to the Grant if the Grant is awarded; 2) confirming that the Board of Directors has reviewed the purpose of the application and supports the application being submitted; 3) authorizing the General Manager/CEO to establish related revenue and expenditure budgets in the Water Operating Budget and for the grant funds contingent on receipt of Grant award; and 4) authorizing the General Manager/CEO or his designee, to work with the USBR to meet establ-ished deadlines for entering into a cooperative agreement; 5) authorizing the General Manager/CLO to execute other provisions required under the applicable USBR guidelines. The project scope including matching funds would result in up to $1,500,000 to replace meters within a designated area. Radio read meter installations minimize water loss and increase Page 1 SR#0186 AGENDA DATE: December 12, 2012 SUBJECT: 2013 WATERSMART WATER AND ENERGY EFFICIENCY GRANT APPLICATION metering efficiencie& if the applications are successful, staff will bring this item back to Board for approval of a funding agreement. STRATEGIC INITIATIVE. This item is consistent with the goals set forth in'. Strategic Initiative I - Provide Safe and Reliable Water Supply Strategic Initiative III - District Resource Enhancement Efforts FISCAL IMPACT: There is no fiscal impact that coincides with submitting the Water SMART Water and Energy Efficiency Grant application. GSBR has a 5011/o or dollar -for -dollar, match reduirement. Staff will be requesting up to $750,000 total in grant funds, resulting in a maximtun required match of $750,000 shoulcl the project be awarded. Respectfully submitted: Recommended by iM Jo' lura Kelly N,o General Manager/CEO Public Af air: Conscrvt do Officcr ATTACHMENTS: Resolution 2012.22 Page � 2 SR80186 RESOLUTION NCI. 2012.22 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT AUTHORIZING AND APPROVING 2013 BUREAU OF RECLAMATION WATERSMART WATER AND ENERGY EFFICIENCY GRANT APPLICATION. W HEREAS, In November 2012, the U.S. Bureau of Reclamation (USBR) released a Funding Opporamily Announcement (FOA) — Watersmart Water and Energy Efficiency Grants for Fiscal Year 2013, for projects that conserve and use water more efficiently; WHEREAS, East Valley Water District (District) has the authority to construct, operate, and maintain the service area water distribution system; and WHEREAS, the District Radio Read Meter Replacement Program will promote water conservation and efficient water use and meets eligibility requirements for financial assistance from the USBR. The proposed grant funding amount for the water meter retrolit project is $750,000. The grant would require that the District share 50% of the project cost, or up to $750.000 of local match. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District as follows: Section L Authorizes the General Manager/CEO to submit an application for the 2013 U.S. Bureau of Reclamation's (USBR's) WaterSMART Water and Energy Efficiency Grants (Grant) for the East Valley Water District AMR Meter Replacement Project, up to the maximum grant amount of $-750,000 million, and to execute all agreements related to the Grant if awarded. Section 2. Confirms that the Board of Directors has reviewed the purpose of the application and <.uppori:s the application being submitted Section 3. Authorizes the General Manager/CEO, to establish related revenue and expenditure budgets in the Water Operating Fund and for the grant funds contingent on receipt of Grant award. Section 4. Aut'iorizes the General Manager/CEO, to work with the USBR to meet established deadlines for entering into a cooperative agreement. Section 5. Autytorizes the General Manager/CEO, to execute ether provisions required under the applicable USBR guidelines. ADOPTED this 12th day of December, 2012. AYES: NOES: ABSTAIN: ABSENT: Matt LeVesque President, Board of Directors ATTEST: John]. Mura Secretary, Board of Directors BOARD AGENDA STAFF REPORT Meeting Date: December 12, 2012 East Valley Public Hearing: EJ Water District Discussion Item: � Consent Item .La-� Closed Session F-1 December 6, 2012 TO: GOVERNING BOARD MEMBERS FROM: GENERAL MANAGER/CEO SUBJECT: DISBURSEMENTS RECOMMENDATION: Approve the attached list of accounts payable checks and payroll issued. BACKGROUND/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 28, 2012 through December 5, 2012. Accounts payable checks for the period included check numbers 234771 through 234933 for a total of $1,094,128.41. 'Ihe source of funds for this amount is as follows, Unrestricted Funds $1,094,128.41 Bond Financing $ State Financing $ Payroll and benefit contributions paid for this period totaled $334,8 36.81. Total disbursed during the period $1,428,965.22. STRATEGIC INITIATIVE: Strat it, Initiative I - Provide safe and Reliable Water Supply (l:) -- Transparent and efficient financial management Pagel SIR#018 8 AGENDA DATE: December 12, 2012 SUBJECT: DISBURSEMENTS REVIEW BY OTHERS: This agenda item has been reviewed by the Chief Fimanciat Office: and the Accounting Supervisor. FISCAL IMPACT: $1,428,965.22 (budgeted expenditures) Respectfully submitted: Recommended b}': �� ,�.11�C� �ZNCcc CtKLc_ 6c �Ltii.c✓[���J�%t-1 f o n ura Brian T mpl:ins c General Manager/CLO Chief Financial Oliicer ATTACHMENTS: List of Accounts Payables checks Page 12 SR#0188 East Valley Water District Dale. Thursday, December 06, 2012 rage 1 of 13 Check Register - EVWD Check Register 03.33. Arv: Uear. KATHY :,cnGanr. EVVVD Check Nbr Type Date Id Name ProiectlD Project Description Discount OrigDocAmt Dr Cr 234771 CK 11/28/2012 ACW004 ACWA/JPIA 5,100.00 091330 VO 23186 Dental Insurance -ASC 4,136.31 D 091330 VO 51610 Director- Benefits 208.87 D 091330 VO 76500 Health/Dental/Life Insurance 754.82 D 234772 CK 11/28/2012 ADM002 ADMIRAL CONSULTING GROUP 92.50 091360 VO 71560 Computer System MaintContr 92.50 D 234773 CK 11/28/2012 AGU040 AGUILAR-JOSE 24.68 091179 VO 22210 Customer Refunds 24.68 D 234774 CK 11/28/2012 AHM007 AHMAD-IMRAN 55.24 091180 VO 22210 Customer Refunds 55.24 D 234775 CK 11/28/2012 AHM008 AHMADZADA-NOOK 9.82 091283 VO 22210 Customer Refunds 9.82 D 234776 CK 11/28/2012 AKDO01 DHINGRA DBA-ASHOK K. 7,473.00 091337 VO 74500 Engineering Consultants 7,473.00 D 234777 CK 11/28/2012 ARA021 ARANA-CARLOS 6.01 091097 VO 22210 Customer Refunds 6.01 D 234778 CK 11/28/2012 ARR034 ARROYO-ALFONSO 90.51 091181 VO 22210 Customer Refunds 90.51 D 234779 CK 11/28/2012 ATT007 AT&T 261.64 091344 VO 71015 Telephone 38.46 D 091345 VO 71015 Telephone 74.11 D 091346 VO 71015 Telephone 149.07 D 234780 CK 11/28/2012 AUD001 COUNTY TREASURER/CONTROLLER 25.00 091324 VO 73100 Audit/Accounting Fees 25.00 D 234781 CK 1,1128/2012 AVA005 AVAYA FINANICIAL SERVICES 1,212.00 091322 VO 22503 LTD due within 1 year 979.60 D 091322 VO 85100 Interest Expense 232.40 D 234782 CK 11/28/2012 BAR074 BARRY'S SECURITY SERVICES, INC 5,903.28 091338 VO 72500 Security Services 1,378.08 D 091347 VO 72500 Security Services 1,355.01 D 091351 VO 72500 Security Services 1,573.56 D 091352 VO 72500 Security Services 1,596.63 D 234783 CK 11/28/2012 BER035 BERRY-PAMELA 71.03 091182 VO 22210 Customer Refunds 71.03 D 234784 CK 11/28/2012 BUR023 BURKE-KATHLEEN R 700.00 091339 VO 23190 Miscellaneous Deductions 700.00 D 234785 CK 11/28/2012 C&M001 C&M ELECTRIC 1,969.48 001349 Vol 62000 Maintenance 1,969.48 D 234786 CK 11/28/2012 CAN033 CANEDY-OREN E 11.10 091325 VO 22210 Customer Refunds 11.10 D 234787 CK 11/28/2012 DA1001 DAILY JOURNAL CORPORATION 352.00 091340 VO 71650 Printing and Publishing 352.00 D 234788 CK 11/28/2012 DAL011 LLC-DALLIN 387.83 091284 VO 22210 Customer Refunds 159.21 D 091285 VO 22210 Customer Refunds 182.50 D 091286 VO 22210 Customer Refunds 46.12 D 234789 CK 11/28/2012 EW1001 EWING IRRIGATION PRODUCTS INC 213.68 091342 VO 71705 Grounds Repairs/Maintenance 213.68 D 234790 CK 11/28/2012 EXCO04 EXCEL LANDSCAPE 10,180.00 091353 VO 71700 Grounds Maintenance Contra 10,180.00 D 234791 CK 11/28/2012 FAR028 FARNAM-MICHAEL P 26.65 091291 VO 22210 Customer Refunds 26.65 D 234792 CK 11/28/2012 FAS002 FASTENAL COMPANY 221.97 091355 VO 61000 Materials & Supplies-Oper. 9.15 D 091355 VO 79100 Safety Equipment 187.84 D 091362 VO 61000 Materials & Supplies-Oper. 24.98 D 234793 CK 11/28/2012 FER009 FERGUSON ENTERPRISES INC 1350 388.68 091343 VO 61000 Materials & Supplies-Oper. 388.68 D 234794 CK 11/28/2012 GIA004 GIANG-QUYEN 5.95 091183 VO 22210 Customer Refunds 5.95 D 734705 CK ^,1128/2012 IILw5 COL i n onL n" DE"v r R RTY iv AN GEfv1 EN I 36. i6 091184 y0 22210 Customer Refunds 3g,?g D 234796 CK 14/281,204,2 HAC001 !JAC!! COMPANY 1,231.75 091303 VO 65200 Water Testing 1,231.75 D 234797 CK 11/28/2012 HAL026 HALO BRANDED SOLUTIONS, INC 852.73 091323 VO 77600 Public Education/Outreach 852.73 D 234798 CK 11/28/2012 HA0001 Mohammed Haq 87.13 091185 VO 22210 Customer Refunds 72.75 D 091186 VO 22210 Customer Refunds 14.38 D 2047;-0 CK 11/28/2012 IL;T001 HATFIELD BUICK 72.27 091312 VO 71720 Vehicle Parts/Supply 72.27 D 234800 CK 11/28/2012 HER158 HERNANDEZ—ALEJANDRO 56.27 091101 VO 22210 Customer Refunds 56.27 D 234801 CK 11/28/2012 HOR016 HORIZON 2010 ENTERPRISE 88.60 091288 VO 22210 Customer Refunds 88.60 D 234602 I ? 2o/20?2 1IIE" HU00I HUB%01401MUUIION OrLUAL J 13/.69 091313 VO 61100 Small Tools 137.69 D 234803 CK 11/28/2012 IMP007 REALTY, INC—IMPACT 75.81 091326 VO 22210 Customer Refunds 75.81 D 234804 CK 11/28/2012 INL004 INLAND DESERT SECURITY & 386.10 091308 VO 71300 Communications Services 386.10 D 234805 CK 11/28/2012 INL005 INLAND WATER WORKS SUPPLY CO 50,326.92 091314 VO 11200 Construction in Progress WA001226 Meter Replacement/Turnover Prg -1,019.52 50,976.00 D 091315 VO 61000 M2taria1s R 9mnlies-Char nn n 234806 CK 11/28/2012 INT005 INTERSTATE BATTERY 4.30 091356 VO 71500 Office Supplies 4.30 D 234807 CK 11/28/2012 INT018 INTERMEDIA 1,085.57 091300 VO 74950 Other Contracted Services 1,085.57 D 234808 CK 11/28/2012 JAR005 JARAMILLO—MICHAEL 70.00 091354 VO 77400 Licenses and Certifications 70.00 D 234809 CK 11/28/2012 KAH006 KAHOOKELE-RAYMOND R 28.94 091187 VO 22210 Customer Refunds 28.94 D 234810 CK 11/28/2012 KR0005 KRUSE-BRISHEN 150.84 091350 VO 79100 Safety Equipment 150.84 D 234811 CK 11/28/2012 LAW003 LAWSON PRODUCTS,INC 533.73 091357 VO 61000 Materials & Supplies-Oper. -4.67 538.40 D 234812 CK 11/28/2012 LDT001 TOPLIFF JR.-LES D 214.84 091304 VO 62000 Maintenance 214.84 D 234813 CK 11/28/2012 LEGO06 COLLIER DBA-KEITH 14,740.63 091305 VO 62000 Maintenance 2,210.00 D 09130r, VO 62000 Maintenance 12,530.63 D 234814 CK 11/28/2012 MAG011 MAGALLON-INES 36.98 091093 VO 22210 Customer Refunds 36.98 D 234815 CK 11/28/2012 MAR211 MARRUJO-ARMANDO 32.58 091104 VO 22210 Customer Refunds 32.58 D 234816 CK 11/28/2012 MAT036 MATHIS DBA-ROBERT W 2,650.00 091301 VO 74900 Miscellaneous Consultants 2,650.00 D 234817 CK 11/28/2012 MCCO23 MC CROMETER INC 1,489.90 091358 VO 61000 Materials & Supplies-Oper. 1,489.90 D 234818 CK 11/28/2012 MER028 MERCURI-LOUIS 62.43 091188 VO 22210 Customer Refunds 62.43 D 234819 CK 11/28/2012 MIT015 MITCHELL-KIMIKA 12.68 091094 VO 22210 Customer Refunds 12.68 D 234820 CK 11/28/2012 MMS001 M AND M SMOG INC. 34.75 091310 VO 71725 Vehicle Repairs/Maintenance 34.75 D 234821 CK 11/28/2012 MUN027 MUNOZ-LUIS 41.58 091293 VO 22210 Customer Refunds 41.58 D 234822 CK 11/28/2012 NAP007 NAPA AUTO PARTS /BOSS MOSS 166.26 091317 VO 71727 Garage Supplies/Small Tools 18.55 D 091318 VO 71727 Garage Supplies/Small Tools 27.35 D 091319 VO 71727 Garage Supplies/Small Tools 120.36 D 234823 CK 11/28/2012 NGU136 NGUYEN-HOWARD 72.30 091168 VO 22210 Customer Refunds 72,30 D 234824 CK 1 1 12 8/201 2 OCH000 OCHOA- HUM,BERTO 20.47 091095 VO 22210 Customer Refunds 28.47 D 234825 CK 11;28/2C12 OFF007 OFFICETEAM 525,55 091361 VO 51700 Temporary Labor 525.55 D 234826 CK 11/28/2012 OGE001 OGEA—WALTER 28.42 091105 VO 22210 Customer Refunds 28.42 D 234827 CK 11/28/2012 ONL002 ONLINE RESOURCES CORPORATION 41.40 091309 VO 22210 Customer Refunds 41.40 D 234@28 CK 11/28/2012 OST001 OSTLUND—ALETA 55.23 C"1c:; VO 22210 Customer Refunds 55.23 D 234829 CK 11/28/2012 PCC001 CONNECTION—PC 267.25 091299 VO 71570 Computer Supplies 267.25 D 234830 CK 1 112 8/2 01 2 RAM114 RAM DEVELOPMENT LLC 87.13 091107 VO 22210 Customer Refunds 50.16 D 091106 VO 22210 Customer Refunds 36.97 D ��n Qo1 Cv ii/28i2012 nAiV1110 RAIVIIREL"FABIVLh1 3/.40 091096 VO 22210 Customer Refunds 37.48 D 234832 CK 11/28/2012 RAM119 RAMIREZ-ERNESTINA 44.97 091190 VO 22210 Customer Refunds 44.97 D 234833 CK 11/28/2012 REB017 TOGETHER LONG BEACH -REBUILDING 25.12 091294 VO 22210 Customer Refunds 25.12 D 234834 CK 11/28/2012 RIM002 RIMROCK TELECOM SERVICES 156.00 091310 VO 71300 Communications Services 156.00 D 234835 CK 11/28/2012 SAF005 COMPANY -SAFETY COMPLIANCE 200.00 091364 VO 74400 Safety Consultants 200.00 D 234836 CK 11/28/2012 SAN038 SAN BERNARDINO COUNTY RECORDER 209.00 091363 VO 22218 Lien Release Fee Payable 209.00 D 234837 CK 11/28/2012 SEN001 SENTRY -TECH SYSTEMS, L.L.C. 1,475.00 091341 VO 72500 Security Services 1,475.00 D 234838 CK 11/28/2012 SOU024 SOUTHERN CALIF OCCUPATIONAL 1,515.00 091365 VO 71540 Medical Fees 1,515.00 D 234839 CK 11/28/2012 STE069 SAVER, ING-STEP 2,180.25 091307 VO 65100 Treatment Chemicals 2,180.25 D 234840 CK 11/28/2012 VER004 VERIZON CALIFORNIA 341.88 091302 VO 71015 Telephone 43.77 D 091311 VO 71010 Utilities 91.99 D 091311 VO 71015 Telephone 176.53 D 091348 VO 71015 Telephone 29.59 D 234841 CK 11/28/2012 VIS002 VISTA PAINTS 63.97 091359 VO 61000 Materials & Supplies-Oper. -1.31 65.28 D 23.2"2 CK 11/201/2012 lNAY002 INAYPOINT/GI VENTURE, LLC 237.45 0yC06 VO 22210 Customer Refunds 138.47 D 091329 VO 22210 Customer Refunds 98.98 D 234843 CK 11/28/2012 WIL114 HOMES-WILLIAMS 67.74 091296 VO 22210 Customer Refunds 67.74 D 234844 CK 11/28/2012 WWG001 GRAINGER 251.25 091320 VO 61100 Small Tools 217.94 D 091320 VO 71727 Garage Supplies/Small Tools 33.31 D 234845 CK 11/28/2012 ZHAO04 ZHANG-XINCAN 48.91 091109 VO 22210 Customer Refunds 48.91 D 234846 CK 11/28/2012 SAN004 SAN BERNARDINO-CITY OF 601,944.72 091321 VO 64000 Contracted Treatment -City 601,944.72 D 234847 CK 11/30/2012 MIL061 MILLER SPATIAL SERVICES, LLC 2,520.00 091389 VO 51700 Temporary Labor 2,520.00 D 234848 CK 11/30/2012 PAL035 PALOMARES-FRANK 2,565.00 091390 VO 51700 Temporary Labor 2,565.00 D 234849 CK 12/03/2012 BUR023 BURKE-KATHLEEN R 3,364.00 091394 VO 49653 Scrap Meters 3,364.00 D 234850 CK 12/03/2012 BUR023 BURKE-KATHLEEN R 4,000.00 091395 VO 49653 Scrap Meters 4,000.00 D 234851 CK 12/03/2012 CIT007 CITY OF HIGHLAND 12,200.00 091396 VO 11200 Construction in Progress WA002533 NEW DISTRICT OFFICES 12,200.00 D 091396 VO 11200 Construction in Progress WA002533 NEW DISTRICT OFFICES -12,200.00 D 234852 CK 12/03/2012 CIT007 CITY OF HIGHLAND 4,800.00 nql ionogres vv ii2w Pr Constiucfiolr� iii �y�cas �n nn1coo w"vivE'v"v' DiSTnii.T vi i iCi_S 234853 CK 12/03/2012 CIT 007 CITY OF HIGHLAND 7,400.00 no+,399 VO 1120CCcilstrUCtIGil iii Progress VVR002533 NEW DISTRICT OFFICES 7,4v0.0^v D 234855 CK 12/05/2012 AKDO01 DHINGRA DBA-ASHOK K. 5,760.00 091400 VO 11200 Construction in Progress WA002502 Plant 143 Fac Planing Study 382.50 D 091400 VO 11200 Construction in Progress WA002514 SUNRISE RANCH DEVELOPMEN 820.50 D 091400 VO 11200 Construction in Progress WA002533 NEW DISTRICT OFFICES 2,932.50 D 091400 VO 11200 Construction in Progress WA002541 PLT 134-Bridge-Fema Job 1952 765.00 D 091400 VO 74500 Engineering Consultants 859.50 D 2340-�C CK 12/05/2012 APE002 INNOVATIONS, INC-APEX 1,638.17 091434 VO 13740 General A/R 1,638.17 D 234857 CK 12/05/2012 ARC012 ARCADIS U.S., INC 27,424.30 091378 VO 11200 Construction in Progress WA002502 Plant 143 Fac Planing Study 11,199.30 D 091379 VO 11200 Construction in Progress WA002502 Plant 143 Fac Planing Study 16,225.00 D 234858 CK 12/05/2012 ARRO09 ARROWHEAD UNITED WAY 45.00 091435 VO 23191 United Way Deduction 45.00 D 234859 CK 12/05/2012 ASS006 ASSOC OF CALIF WATER AGENCIES 20,526.00 091401 VO 14420 Prepaid Expense 10,263.00 D 091401 VO 71400 Memberships and Dues 10,263.00 D 234860 CK 12/05/2012 BAR070 BARNES-KATHLEEN Y 54.05 091197 VO 22210 Customer Refunds 54.05 D 234861 CK 12105/2012 BAX002 MARY BAXTER 476.16 091414 AD 76500 Health/Dental/Life Insurance -73.84 C 091413 VO 76600 OPEB - Retiree Medical 550.00 D 234862 CK 12/05/2012 BLA033 BLAIS & ASSOCIATES, INC 2,239.72 091402 VO 74900 Miscellaneous Consultants 1,584.78 D 091403 VO 74900 Miscellaneous Consultants 654.94 D 234863 CK 12/05/2012 BLA034 BLACK & VEATCH CORP 28,119.00 091382 VO 11200 Construction in Proaress SE002538 SEWER MASTER PLAN 28.119.00 D 234864 CK 12/05/2012 BOL001 BOLL-MICHAEL 435.54 '-'91464 AD 76500 Health/Dental/Life Insurance -36.06 C 091463 VO 76600 OPEB - Retiree Medical 471.60 D 234865 CK 12/05/2012 BRI009 BRITHINEE ELECTRIC 3,096.20 091383 VO 62000 Maintenance 3,096.20 D 234866 CK 12/05/2012 BRO001 BROWNING-JAMES 493.24 091416 AD 76500 Health/Dental/Life Insurance -56.76 C 091415 VO 76600 OPEB - Retiree Medical 550.00 D 234867 CK 12/05/2012 BUR022 BURGESS MOVING & STORAGE 837.70 091417 VO 71910 Outside Storage Rental 837.70 D 234868 CK 12/05/2012 CAM004 CDM SMITH INC. 35,573.90 091404 VO 11200 Construction in Progress WA002292 Plant 134 Upgrade 25,865.26 D 091405 VO 11200 Construction in Progress WA002502 Plant 143 Fac Planing Study 9,708.64 D 2_4".65 CK 12/05/2012 CLA041 CLAYTON-HENRY 64.44 091198 VO 22210 Customer Refunds 64.44 D 234870 CK 12/05/2012 COL047 COLONIAL LIFE, PREMIUM 142.74 091376 VO 23132 Life Insurance-Phoenix Hm Li 142.74 D 234871 CK 12/05/2012 CO0004 COURTNEY'S ELECTRIC, INC. 83.35 091441 VO 71615 Building Repairs / Maintenanc 83.35 D 234872 CK 12/05/2012 CO0025 COUNTY OF SAN BERNARDINO 1,968.00 091380 VO 62100 Permit Fees 1,968.00 D 234873 CK 12/05/2012 CVS001 STRATEGIES-CV 51767.21 091406 VO 74200 Public Relations Consultants 5,767.21 D 234874 CK 12/05/2012 DEM008 DEMATTY-DANIEL A 18.32 091200 VO 22210 Customer Refunds 18.32 D 234875 CK 12/05/2012 EAS003 East Valley Water District 11246.97 091436 VO 23195 FSA Withholding 1,246.97 D 234876 CK 12/05/2012 EAS013 EAST VALLEY PROPERTY MGMT 132.78 091287 VO 22210 Customer Refunds 132.78 D 234877 CK 12/05/2012 FAR002 FARRINGTON-STEVEN 550.00 091418 VO 76600 OPEB - Retiree Medical 550.00 D 234878 CK 12/05/2012 FER009 FERGUSON ENTERPRISES INC 1350 23.30 091442 VO 61000 Materials & Supplies-Oper. 23.30 D 234879 CK 12/05/2012 F0X001 FOX-JANA 364.65 091420 AD 76500 Health/Dental/Life Insurance -35.35 C 091419 VO 76600 OPEB - Retiree Medical 400.00 D 234880 CK 2;05;2012 GRA003 GRANT—GORDON 550.00 0x1421 VO 76600 OPEB - Retiree Medical 550.00 D 234881 CK 12/05/2012 GR0014 GROUP DELTA CONSULTANTS, INC 1,510.57 091381 VO 11200 Construction in Progress WA002502 Plant 143 Fac Planing Study 1,510.57 D 234882 CK 12/05/2012 HAR033 HARRIS COMPUTER SYSTEMS 36,044.02 091422 VO 14420 Prepaid Expense 18,022.01 D 091422 VO 71560 Computer System MainGontr 18,022.01 D 2'4233 CK 12/05/2012 HAT001 HATFIELD BUICK 152.79 0'.," VO 71770 Vehicle Parts/Supply 152.79 D 234884 CK 12/05/2012 HIG005 HIGHLAND COMMUNITY NEWS 795.00 091462 VO 77600 Public Education/Outreach 795.00 D 234885 CK 12/05/2012 HIG021 HIGHLAND EQUIPMENT RENTAL 11.32 091440 VO 61000 Materials & Supplies-Oper. 11.32 D 234886 CK 12/05/2012 HS0001 HsuBu 550.00 091432 VO 74950 Other Contracted Services 550.00 D 234887 CK 12/05/2012 IDVO01 BAUDVILLE, INC. 3,305.44 091368 VO 79100 Safety Equipment 206.44 D 091369 VO 79100 Safety Equipment 3,099.00 D 234888 CK 12/05/2012 INL005 INLAND WATER WORKS SUPPLY CO 94,799.68 091366 VO 61000 Materials & Supplies-Oper. -8.66 433.08 D 091367 VO 61000 Materials & Supplies-Oper. -5.38 165.24 D 091357 VO 61100 Small Tools -5.38 103.68 D 091384 VO 11200 Construction in Progress WA001226 Meter Replacement/Turnover Prg -369.60 18,480.00 D 091443 VO 61000 Materials & Supplies-Oper. -4.32 216.00 D 091444 VO 61000 Materials & Supplies-Oper. -8.62 430.92 D 091445 VO 61000 Materials & Supplies-Oper. -0.40 20.24 D 091446 VO 11200 Construction in Progress WA001226 Meter Replacement/Turnover Prg -1,458.00 72,900.00 D 091447 VO 11200 Construction in Progress WA001226 Meter Replacement/Turnover Prg -79.70 3,985.20 D 2.34889 CK 12/05/2012 INT005 INTERSTATE BATTERY 64.69 091449 VQ 'i570 CGmipUter Guppiie5 6469 D 234890 CK 12/05/2012 KEN002 KENNEDY/JENKS CONSULTANTS 10.666.25 091407 VO 74500 Engineering Consultants 10,666.25 D 234891 CK 12/05/2012 KOH002 KOH-VALARIE 15.16 091191 VO 22210 Customer Refunds 15.16 D 234892 CK 12/05/2012 KON004 KONICA MINOLTA BUSINESS 53.00 091450 VO 71550 Office Equipment MaintContn 53.00 D 234893 CK 12/05/2012 LAR005 LARRY JACINTO CONSTRUCTION 1,632.63 091373 VO 22210 Customer Refunds 1,632.63 D 234894 CK 12/05/2012 LEGO06 COLLIER DBA-KEITH 1,487.90 091385 VO 62000 Maintenance 1,487.90 D 234895 CK 12/05/2012 MAD020 MADDEN-TAMARA 21.42 091192 VO 22210 Customer Refunds 21.42 D 23 Cr; 12/0 /2012 MET 002 METROPOLITAN LIFE INS CO 221.01 el!; _'= VO 23130 Life Insurance-Met Life 221.01 D 234897 CK 12/05/2012 MEY010 MEYER-KURT 350.00 091408 VO 76200 Insurance Claims 350.00 D 234898 CK 12/05/2012 MIL001 MILOBEDZKI-JACEK 800.00 091391 VO 74100 Computer Consultants 800.00 D 234899 CK 12/05/2012 NAP007 NAPA AUTO PARTS /BOSS MOSS 209.95 091388 VO 71720 Vehicle Parts/Supply 14.87 D 091451 VO 71727 Garage Supplies/Small Tools 98.10 D 091452 VO 71727 Garage Supplies/Small Tools 96.98 D 234900 CK 12/05/2012 NOR053 NORMAN-LAURIE VAN 62.95 091199 VO 22210 Customer Refunds 62.95 D 234901 CK 12/05/2012 OFF007 OFFICETEAM 395.52 091409 VO 51700 Temporary Labor 395.52 D 234902 CK 12/05/2012 PAM001 MGMT-PAMA 184.72 091327 VO 22210 Customer Refunds 95.08 D 091328 VO 22210 Customer Refunds 89.64 D 234903 CK 12/05/2012 PCC001 CONNECTION-PC 257.45 091453 VO 71570 Computer Supplies 257.45 D 234904 CK 12/05/2012 PH0001 PHOENIX HOME LIFE 98.72 091424 VO 23132 Life Insurance-Phoenix Hm Li 98.72 D 234905 CK 12/05/2012 PYTO02 YTLIK-JOY G 28.58 09'•193 VO 22210 Customer Refunds 28.58 D 234906 CK 12/05/2012 QUE010 QUEENIN^MAH IIN 45.09 091204 'VO 7_22ic) Customer Refunds 45.09 D 234907 CK 12/05/2012 REA002 REARDON-MICHAEL 291.19 091426 AD 76500 Health/Dental/Life Insurance -36.06 C 091425 VO 76600 OPEB - Retiree Medical 327.25 D 234908 CK 12/05/2012 RE1011 REID & HELLYER, A.P.C. 3,450.23 091410 VO 72400 Legal Fees 3,450.23 D 234909 CK 12/05/2012 RIV044 RIVERA-ANA D 20.01 0912nr; VO 22210 Customer Refunds 20.01 D 2-4-iC CK 12;05/2012 sAFCC1 SAFE1 Y KLEEN ACCOUNTS PAYABLE 284.57 091_rs VO 7172 Vehicle Repairs/Maintenance 284.57 D 234911 CK 12/05/2012 SAF005 COMPANY -SAFETY COMPLIANCE 200.00 091454 VO 74400 Safety Consultants 200.00 D 234912 CK 12/05/2012 SAN004 SAN BERNARDINO-CITY OF 24,887.43 091392 VO 49750 Sewer Treatment 12,332.54 D 091393 VO 49750 Sewer Treatment 12,554.89 D 234913 CK 12/05/2012 SAN007 SAN BDNO PUBLIC EMPLOYEES ASSN 731.32 091437 VO 23170 Union Dues 731.32 D 234914 CK 12/05/2012 SAN013 SANTINI-STEVE 400.00 091427 VO 76600 OPEB - Retiree Medical 400.00 D 234915 CK 12/05/2012 SC0029 SCOTT -DOLL L 215.97 091194 VO 22210 Customer Refunds 215.97 D 234916 CK 12/05/2012 SH1006 SHIDLER DEVELOPMENT INC 62.13 =2,`7 VO 22210 Customer Refunds 62.13 D 234917 CK 12/05/2012 SIV002 SIVAK-SEAN 22.72 091195 VO 22210 Customer Refunds 22.72 D 234918 CK 12/05/2012 S0O028 SOUTHWEST MEMBRANE OPERATOR 100.00 091377 VO 71400 Memberships and Dues 100.00 D 234919 CK 12/05/2012 STA013 STAFFORD -FRED 476.16 "91429 AD 76500 Health/Dental/Life Insurance -73.84 C 091428 VO 76600 OPEB - Retiree Medical 550.00 D 234920 091438 091439 234921 091431 091430 234922 091370 091370 2'.4^2' Z C014�7 234925 091386 091387 234926 091433 234927 091458 234928 091411 234929 091459 234930 091412 CK VO VO CK AD VO CK VO VO ry (Ir 1110 CK VO VO CK VO CK VO CK VO CK VO CK VO 12/05/2012 23190 23190 12/05/2012 76500 76600 12/05/2012 14420 71550 12/05/2012 12/05/2012 11200 12/05/2012 71555 71555 12/05/2012 71015 12/05/2012 61000 12/05/2012 72400 12/05/2012 61000 12/05/2012 77600 234931 CK 12/05/2012 091460 VO 14310 091461 VO 14310 091461 VO 61000 234932 CK 12/05/2012 091196 VO 22210 STA055 STATE DISBURSEMENT UNIT Miscellaneous Deductions Miscellaneous Deductions ST0003 STURDIVAN-GARY Health/Dental/Life Insurance OPEB - Retiree Medical TEL009 TELE -WORKS, INC Prepaid Expense Office Equipment MaintContr: 7!70-,l GM&=.OIDERY C -THE COMPUTERIZED Public Education/Outreach T 0MOC1 T0,rA DODSON & ASSOCIATES Construction in Progress WA002372 Blending Plant 150 VAL074 VALLEY OFFICE EQUIPMENT Office Equipment Repairs/Ma Office Equipment Repairs/Ma VER004 VERIZON CALIFORNIA Telephone VUL001 VULCAN MATERIALS COMPANY Materials & Supplies-Oper. WAGO05 WAGNER & BONSIGNURE Legal Fees WES016 WESTERN WATER CO Materials & Supplies-Oper. WES030 WEST VALLEY WATER DISTRICT Public Education/Outreach WESO46 WORKS COMPANY -WESTERN WATER Inventory-Constr. Materials Inventory-Constr. Materials Materials & Supplies-Oper. WIL123 WILLIAMS HOMES INC Customer Refunds 3,153.12 1,744.62 D 1,408.50 D 476.16 -73.84 C 550.00 D 1,667.00 277.80 D 1,389.20 D 71.05 71.05 D 1,500.00 1,500.00 D 194.07 49.21 D 144.86 D 31.59 31.59 D 340.60 340.60 D 1,014.00 1,014.00 D 1,900.80 1,900.80 D 3,000.00 3,000.00 D 14,041.81 125.93 D 13,915.87 D 0.01 D 81.52 81.52 D 234933 CK 12105/2012 `01IR004 WIRZ & COMPANY PRINTING, INC 77.38 0S1s71 VO 71500 Office Suimlies 15.39 D 091372 VO 71720 Vehicle Parts/Supply 61.99 D T 1,094,128.41 BOARD AGENDA STAFF REPORT Meeting Date: December 12, 2012 East Valley Water District Public Hearing: 0 Discussion Item: [--I Consent Item .0, Closed Session F-1 '_November 30, 2012 TO: GOVERNING BOARD MEMBERS FROM: GENERAL MANAGER/CEO SUBIFCT: BOARD COMPENSATION / BOARD MEMBER FEES AND EXPENSES FOR NOVEMBER 2012 RECOMMENDATION: ,Approve the Governing Board Members' fees and expenses for November 2012. BACKGROUND/ANALYSIS: The Board has instructed staff to list all director fees and expenses as a separate agenda item to show full fiscal transparency. Only after Board review and approval will the compensation and expenses be paid. STRATEGIC INITIATIVE: Presentation of the Governing Board Members fees and expenses supports: Strategic Initiative I - Provide Safe and Reliable'\,Vater Supply (E) - Transparent and efficient financial management R EV IEW BY OTHERS: This agenda item has been reviewed by the administrative staff. F1SCA1 IMPACT: The fiscal impact associated with this agenda item is $5,964.53 which is included in the current I scal budget. Page I 1 SR#0187 AGENDA DATE: December 12, 2012 SUBJECT: BOARD COMPENSATION/BOARD MEMBER PEES AND EXPENSES FOR NOVEMBER 2012 Respcctfully submitted: elDV, o� �1 Jo ura General Manager/CEO ,ATTACHMENTS: Monthly sunnnary report October 2012 fees and expense reports Page12 Recoinmcndcd by: AAazekaex— Justiial Henclricl<kn Administrative Manager SRk0187 ri:E0ST i I Lt'v'tSVUE EAST VALLEY WATER DISTRICT BOARD OF DIRECTORS 2012-2013 DIRECTOR MORALES DIRECTOR STURGEON FEES FEES EXPENSES JULY 1750.00 21.84 AUG 1750.00 21 .54 SEPT 1750.00 82.00 OCT 1750.00 77.96 EAST VALLEY WATER DISTRICT BOARD OF DIRECTORS 2012-2013 DIRECTOR MORALES DIRECTOR STURGEON FEES EXPENSES FEES EXPENSES 1225.00 150.00 1575.00 371.97 1400.00 33.00 1575.00 68.79 1225.00 13.38 1575.00 204.09 1575.00 37.99 1575.00 178.57 DIRECTOR WILSON FEES EXPENSES DIRECTOR COLEMAN FEES EXPENSES 875.00 12.50 1400.00 35.00 700.00 1750.00 76.32 1225.00 23.00 1750.00 88.96 1225.00 8.50 1750.00 55.61 NOV 25.00 25.00 DEC JAN FEB MAR APRIL MAY JUNE TOTAL REIMB 7000.00 228.34 5425.00 259.37 6300.00 823.42 4025.00 44.00 6650.00 255.89 TOTAL EXPS 7000.00 228.34 5425.00 259.37 6300.00 823.42 4025.00 44.00 6650.00 255.89 DRAFT NAME BOARD OF DIRECTORS EXPENSES FISCAL YEAR 2012 - 2013 BEN COLEMAN DATE CONFERENCE CARFARE MILEAGE OF MEETING FEES AIRFARE PARKING LODGING ACWA 7/12/12 35.00 WMWD 8/15/12 29.47 UCCE Master Gardener 8/21/12 16.87 SB Chamber of Commerce 8/23/12 5.00 13.10 SBVMWD 8/27/12 11.88 Chino Basin Board Mtng 9/4/12 38.63 UCCE Master Gardener 9/4/12 25.31 ASBCSD Meeting 9/17/12 25.02 UCCE Master Gardener 10/2012 42.18 SBVMWD 10/17/12 13.43 MEALS MISC TOTAL 40.00 0.00 215.89 0.00 0.00 0.00 DRAFT NAME Meeting w/Mura Meeting w/Mura Meeting w/Mura Meeting w/Mura ASBCSD Highland Area Chamber of Com WRI SB Area Chamber of Comm Highland Area Chamber of Com UCLA Economic Forecast Meeting w/Mura Meeting w/Mura City of High Silver Jubilee Billed for Spouse Silver Jubilee AL BOARD OF DIRECTOR EXPENSES FISCAL YEAR 2012 - 2013 MATT LE VESOUE DATE CONFERENCE CARFARE iviiLEAGE OF MEETING FEES AIRFARE PARKING LODGING MEALS EDUCATION MISC 7/19/2012 8.50 7/30/2012 13.34 8/1/2012 9.54 8/3/2012 12.00 9/17/2012 37.00 9/18/2012 15.00 9/20/2012 5.00 9/28/2012 25.00 10/3/2012 30.00 10/9/2012 29.97 10/12/2012 10.00 10/15/2012 7.99 11/17/2012 50.00 11/17/2012 -25.00 132.00 71 PIHf: BOARD OF DIRECTOR EXPENSES DRAFT FISCAL YEAR 2012 - 2013 DATE CONFERENCE CARFARE NAME OF MEETING FEES AIRFARE GFOA Renewal 7/30/2012 Meeting w/John M 8/3/2012 Meeting w/John M 8/15/2012 Meeting w/CV Strat 9/24/2012 Highland area Chamber Comm 10/3/2012 30.00 Meeting w/John M 10/15/2012 City of High Silver Jubilee 11/17/2012 50.00 Billed for Spouse Silver Jubilee 11/17/2012 -25.00 JAMES MORALES MILEAGE PARKING LODGING MEALS EDUCATION MISC 12.00 21.00 13.38 7.99 150.00 I U IAL 55.00 0.00 0.00 0.00 54.37 0.00 150.00 DIRAFT BOARD OF DIRECTOR EXPENSES t iSCAL YEAR 2012 - 2013 KIP STLiRGEUN CONFERENCE RAILFARE MILEAGE FEES AIRFARE PARKING LODGING 50.00 250.00 01 U 25.00 32.00 9.99 9.99 9.99 7.00 12.21 12.21 12.21 12.21 31.08 30.53 64.94 15.54 12.21 50.00 59.94 12.21 12.21 MEALS MISC 35.00 19.95 TOTAL 394.00 50.00 324.47 0.00 0.00 54.95 DATE NAME OF MEETING BTAC 7/2/2012 SBVMWD Board mtg 7/3/2012 SBVMWD Workshop 7/9/2012 ACWA 7/12/2012 ESRI Conf 7/26/2012 River Report Newspaper 8/13/2012 BTAC 8/6/2012 SBVMWD 8/9/2012 SBVMWD 8/15/2012 SBVMWD 8/21/2012 Subscription High Comm 8/20/2012 SAWPA 9/4/2012 ,,^.SBCSD 9;17{2012 ACWA 9/19/2012 SB Chamber 9/28/2012 SBVMWD 1 0/212 01 2 MWD 10/8/2012 ASBCSD 10115/2012 SBVMWD 10/18/2012 SBVMWD 10/22/2012 CONFERENCE RAILFARE MILEAGE FEES AIRFARE PARKING LODGING 50.00 250.00 01 U 25.00 32.00 9.99 9.99 9.99 7.00 12.21 12.21 12.21 12.21 31.08 30.53 64.94 15.54 12.21 50.00 59.94 12.21 12.21 MEALS MISC 35.00 19.95 TOTAL 394.00 50.00 324.47 0.00 0.00 54.95 IOTAL 0.00 0.00 0.00 0.00 44.00 0.00 BOARD OF DIRECTORS EXPENSES DRAFT FISCAL YEAR 2012 - 2013 GEORGE WILSON DATE CONFERENCE CARFARE MILEAGE NAME OF MEETING FEES AIRFARE PARKING LODGING MEALS MISC Meeting w/Mura 7/12/2012 12.50 Meeting w/Mura 9/11/2012 11.50 Meeting w/Mura 9/25/2012 11.50 Meeting w/Mura 10/5/2012 8.50 IOTAL 0.00 0.00 0.00 0.00 44.00 0.00 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Ben C Coleman Hoard Meetings Conferences and Other Meetings MONTH November 2012 DATE ORGANIZATION PURPOSE= 27 -Nov John Mura Travel Expenses: (Details on Back) Director's Signature Date of Ecard Approval Administrative Manager Miscellaneous Notes Review Board agenda for 28 Nov meeting TOTAL # OF MEETINGS 2 @ $175.00 each $ 350.00 Total Director's Meetings & Expenses $ 350.00 Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 350.00 TRAVEL EXPENSES Lodgings: (Detailed receipts attached*) DATE FUNCTION ATTENDED AMOUNT TOTAL LODGING $ Personal Auto (Detailed receipts attached*) PARKING DATE FUNCTION ATTENDED MILES FEES TOTAL FEES $ CURRENT RATE: $0.555 TOTAL MILES $ Meals. (Detailed receipts attached*) DATE FUNCTION ATTENDED AMOUNT $ $ TOTAL MEALS $ Other. (Detailed receipts attached*) DATE FUNCTION / NATURE OF EXPENSE AMOUNT TOTAL OTHER $ ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Matt Le Vesque MONTH November, 2012 Board Meetings 8 -Nov, 14 -Nov, 28 -Nov Conferences and Other Meetings DATE ORGANIZATION PURPOSE 1 -Nov EVWD Mtg. w/,l. Mura, J. Hendrickson, K. Malloy 9 -Nov EVWD Seven Oaks Dam Tour 17 -Nov City of Highland 25th Anniversary 19 -Nov EVWD Mtg. w/.J.Hendricksen 20 -Nov SBVMWD Board Meeting 27 -Nov Highland Chamber Luncheon 28 -Nov 'EVWD Mtg. w/ R. Reeb 29 -Nov EVWD Mtg. w. 13. Mathis TOTAL- # OF MEETINGS 10@ $175.00 each $ 1,750.00 Travel Expenses: (Details on Back) $ 51.22 Total Director's Meetings & Expenses $ 1,801.22 Director's Signature Date of Board Approval Administrative Manager Miscellaneous Notes Less Any Advance Payments $ TOTAL- DUE DIRECTOR $ 1,801.22 TRAVEL EXPENSES Lodgings: (Detailed receipts attached') DATE FUNCTION A Personal Auto. (Detailed receipts attached") DATE FUNCTION ATTENDED 29 -Nov Mtq. w/B/ Mathis AMOUNT $ TOTAL LODGING $ PARKING MILES FEES 34 $ TOTAL FEES $ CURRENT RATE: $0.555 TOTAL MILES 34 $ 18.87 Meals: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT 28 -Nov Mtg. w/ R. Reeb $ 32.35 TOTAL MEALS $ 32.35 Other: (Detailed receipts attached') DATE FUNCTION / NATURE OF EXPENSE AMOUNT TOTAL OTHER $ ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ 51.22 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT CIRECTOR James Morales, Jr. MONTH November, 2012 Board Meetings 8 -Nov, 14 -Nov, 28 -Nov Conferences and Other Meetinqs DATE_ ORGANIZATION PURPOSE 7 -Nov EVWD Mtg. w/ 1. Mura 9 -Nov EVWD Seven Calks Dam Tour (meet and greet) 17 -Nov City of Highland 25th Anniversary 26 -Nov EVWD Mtg. w/.I. Mura 27 -Nov Highland Chamber Luncheon TOTAL # OF MEETINGS 8 @ $175.00 each $ 1,400.00 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 1,400.00 Director's Signature Date of Board Approval Administrative Manager Miscellaneous Notes Less Any Advance Payments $ TOTAL- DUE DIRECTOR $ 1,400.00 TRAVEL EXPENSES Lodgings: (Detailed receipts attached*) DATE FUNCTION ATTENDED TOTAL LODGING $ Personal Auto. (Detailed receipts attached*) DATE FUNCTION ATTENDED MILES TOTAL FEES $ CURRENT RATE: $0.555 TOTAL MILES Meals: (Detailed receipts attached*) DATE FUNCTION ATTENDED AMOUNT PARKING FEES $ TOTAL MEALS $ Other: (Detailed receipts attached*) DATE FUNCTION NATURE OF EXPENSE AMOUNT TOTAL OTHER $ ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Sturgeon Board Meetings 14 & 28 & 8 Conferences and Other Meetings DATE ORGANIZATION 7 EVWD 8 14 26 27 29 USAWRA SBVWCD SBVMWD City of Highland 7.:iff Davis Travel Expenses: (Details on Back) l Director's Signaturer;,r—' ( Date of Board Approval December 12, 2012 Administrative Manager Miscellaneous Notes MONTH 11 .2012 PURPOSE Meet with CEO Meeting Meeting Baseline Feeder Committee Council Meeting Internet Security Update TOTAL # OF MEETINGS 6 @ $175.00 each $ 1,050.00 $ 488.31 Total Director's Meetings & Expenses $ 1,538.31 Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 1,538.31 TRAVELEXPENSES Lodgings: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT ORIGINAL RECEIPTS REQUIRED TOTAL OTHER $ 465.00 TRAVEL EXPENSES $ 488 .31 TOTAL LODGING $ Personal Auto: (Detailed receipts attached') PARKING DATE FUNCTION ATTENDED MILES FEES 8 USAWRA 10 $ 14 SBVWCD 10 $ 26 SBVMWD 22 $ TOTAL FEES $ CURRENT RATE: $0.555 TOTAL MILES 42 $ 23.31 Meals: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT TOTAL MEALS $ Other: (Detailed receipts attached') DATE FUNCTION / NATURE OF EXPENSE AMOUNT 12/4 ACWA Conference Fee $465.00 ORIGINAL RECEIPTS REQUIRED TOTAL OTHER $ 465.00 TRAVEL EXPENSES $ 488 .31 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Wilson MONTH Nov , 2012 Board Meetings 11/8,11/14;11/28 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 9 -Nov EVWD/RJUSD Awards Assembly, Arroyo Verde 27 -Nov _ _ EVWD Mtg. Wit Gen Mgr TOTAL 9 OF MEETINGS 5 @ $175.00 each $ 875.00 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 875.00 .// Director's Signature Date of Board Approval Administrative Manager Miscellaneous Notes Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 875.00 BOARD AGENDA STAFF REPORT to Meeting Date: December 12, 2012 East Valley Water District Public Hearing: ❑ Discussion Item: 2!r Consent Item ❑ Closed Session ❑ November 30, 2012 TO: GOVERNING BOARD MEMBERS FROM: GENERAL MANAGER/CEO SUBJECT: AUDITED FINANCIAL STATEMENTS FOR YEAR ENDED JUNE 30, 2012 RECOMMENDATION: Adopt and file the attached financial statements and audit reports. BACKGROUND/ANALYSIS: Attached is the East Valley Water District Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2012. The CAFR includes the District annual financial statement, accompanying note disclosures and Management Discussion and Analysis, statistical information, and opinion letter from our audit firm. The audit was performed by the CPA firm of Teaman Ramirez, and Smith in accordance with Generally Accepted Auditing Standards and guidelines established by the California State Controller. This year the District was again subject to Governmental Auditing Standards, due to receipt of federal and state funding , and the auditors were, therefore, required to issue additional reports. These reports are included with the audit packet. Once adopted by the Board, staff will submit the District's Fiscal Year 2012 CAFR to the Government Finance Officers Association (GFOA) for review and consideration for award of that organization's Certificate of Achievement for Excellence in Financial Reporting. STRATEGIC INITIATIVE: Adoption of the annual CAFR and audited financial statements, and submittal of the CAFR for r_he GFOA certificate supports: Strategic c Initiative I — Provide Safe and Reliable'vVater Supply (E) — Transparent and efficient financial management Page lI SR#0184 AGENDA DATE: December 12, 2012 SUBJECT: AUDITED FINANCIAL STATEMENTS FOR YEAR ENDED JUNE 30, 2012 Strategic Initiative IV — District Brand Development FISCAL IMPACT: There is no fiscal impact associated with this item. Respectfully submitted: ura General Manager/CEO ATTACHMENTS: Fiscal 2011-2012 audited financial statements Page 12 Recommended by: Brianl mpkins Chic inancialOfficer SR#0184 East Valley Water District Comprehensive Annual Financial. Report Fiscal Year Ended June 30, 2012 Highland, California East Valley Nater District Comprehensive Annual Financial Report Fiscal Year Ending June 301, 2012 East Valley Water District Prepared by: Finance Department 3654 E. Highland Avenue, Suite 18 Highland, CA 92346 East Valley Water District Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2012 Table of Contents Introductory Section Paee No. Letterof Transmittal............................................................................................................................i - iv OrganizationalChart ................................................................................................................................ v PrincipalOfficials..................................................................................................................................... vi Financial Section Independent Auditor's Report ............................................................................................................1 - 2 Management's Discussion and Analysis...........................................................................................3-12 Basic Financial Statements: Statementof Net Assets............................................................................................................13 -14 Statement of Revenues, Expenses and Changes in Net Assets..................................................15 -16 Statementof Cash Flows............................................................................................................17 -18 Notes to the Basic Financial Statements....................................................................................19-37 Required Supplementary Information: Schedule of Funding Progress for Retirees Health Coverage............................................................ 38 Supplementary Information: Combining Schedule of Net Assets...................................................................................................40 Combining Schedule of Revenues, Expenses and Changes in Net Assets .................................. 41- 43 Combining Schedule of Cash Flows...........................................................................................44-45 Principal and Interest Repayment Schedule Refunding Revenue Bonds - Series 2010................................................................................46 -47 Department of Water Resources Construction Loan - Contract 0OC412.....................................48 Department of Water Resources Construction Design Loan - Contract 10PX102 .........................49 Department of Water Resources Construction Loan - Contract 11CX101 .............................50-51 Table of Contents (Continued) Statistical Information Section Statistical Section —Table of Contents Page No. Changes in Net Assets by Component — Last Ten Fiscal Years ........................................................ 52-53 Operating Revenues by Source — Last Ten Fiscal Years.........................................................................54 Water Operating Expenses— Last Ten Fiscal Years................................................................................55 Sewer Operating Expenses— Last Ten Fiscal Years................................................................................56 Water Sales and Production — Last Ten Fiscal Years..............................................................................57 Revenue Rates — Last Ten Fiscal Years...................................................................................................58 Active Services by Type — Last Ten Fiscal Years..................................................................................... 59 Principal Customers—Current Fiscal Year and Nine Years Ago.............................................................60 Ratio of Outstanding Debt— Last Seven Fiscal Years.............................................................................61 Debt Service Coverage — Last Ten Fiscal Years....................................................................................... 62 Demographic and Economic Statistics — Last Ten Fiscal Years..............................................................63 Operating and Capacity of Indicators — Last Ten Fiscal Years................................................................64 East Valley Water District 3654 East Highland Avenue, Suite 18, Highland, CA 92346 P.O. Box. 3427, San Bernardino, CA 92413 December 12, 2012 To the Board of Directors and Customers Of East Valley Water District Serving Our Community for Over 50 Years Matt Le Vesqua Chairman rf the Board Jar u Morales, jr Vice Chairman Kip E. Sturgeon Board Member George E.'Skip" Vvirson Board Member B We are pleased to submit the Comprehensive Annual Financial Report (CAFR) for Board Memboi Fast Valley Water District for the year ended June 30, 2012. This report was Gene�ahMao se cEO prepared by District staff in accordance with standards established by the Socretar' Governmental Accounting Standards Board. The District's management is responsible for the presented data, and the completeness and faimess of the presentation, including the note disclosures. We believe that the report presented is accurate in all material respects, and that the financial statements and other information are presented in a manner that enables readers to gain a fall understanding of the District's financial activities for the year. Readers should also refer to the Management Discussion and Analysis in the Financial Section of the CAFR for a detailed discussion regarding the District's financial condition and results of operations. The CAFR follows the guidelines recommended by the Government Finance Officers Association (GFOA) of the United States and Canada. This December, the District will, for the first time, submit the CAFR to this organization for review and possible recognition for achievement in reporting excellence. Background East Valley Water District was formed on Januar✓ 18. 1954, and since then, has provided retail coater service to customers in an expanding service area which now covers 27.7 square miles. The District directly serves treated water to approximately 66,000 people in the City of Highland, and the eastern portion of the City of San Bernardino. In 1964, the District began providing wastewater collections services to the same service area. As of June 30, 2012, the District had 21,985 active water connections and 19.368 active sewer connections. Water Supply and Reliability The District's water supply for the year ended June 30, 2012 includes groundwater (88.2%), surface water (10.5%) and imported water (13%). Groundwater is pumped from the Bunker 'Hill Basin, and surface water from the Santa Ana River is diverted based on rights acquired from the Administration (909) 885-4900, Fax (909) 889-5732 • Engineering (909) 888-8986, Fax (909) 383-1481 Custorner Service (909) 889-9501, Fax (909) 888-67':1 • Finance (909) 381-6463, Fax (909) 888-6741 Bear Valley Water Company. Imported water is purchased from the San Bernardino Valley Municipal Water District, the local purveyor of water from the State Water Project. Water Supply Sources 1.3% IN Groundwater ■Surface Water Imported I Local Economy The District is located within San Bernardino County in a metropolitan area referred to as the "Inland Empire". The District's population has grown by nearly 19.1% since 2000, but has experienced a low number of new connections during the national economic downturn. The District's customer base is substantially residential and commercial, with no major industrial users. Large consumers remain consistent year to year with a state hospital, the school district, and Indian gaming forming the list of top three users. In 2010, median household income (MHI) in San Bernardino County was $55,845, 8.3% lower than the State of California median of $60.883. The City of Highland, whose residents comprise approximately 75% of the District's customer base, had an MHT of $59,549, while the City of San Bernardino, where the remainder of the District's customers reside, had an MHI of $39,895 in 2010. Financial Management The District manages its resources conservatively in order to deliver safe and reliable services to its customers at a fair and cost-effective price. It focuses on establishing fair rates, cost containment, long-term planning, maintaining and upgrading infrastructure, and pursuing ii alternative source of funding. This approach has allowed the District to undertake substantial capital improvement projects during tough economic times, while passing a series of modest rate increases. The keys to the District's successful financial management are the District's Capital Improvement and Financial Plan (CIP), comprehensive reviews of water and sewer rates, and the annual budget process. The CIP provides a comprehensive view of infrastructure investments necessary over a seven year period to ensure that water resources are adequate, water quality is maintained, and the water and sewer service needs of current and future customers are met. The CIP is reviewed annually by the District's Board of Directors during the budget process, at which time the highest priority projects are adopted and receive authorization for expenditure along with the District's operating budget. The District's financial planning also includes the establishment and funding of reserves, and the pursuit of alternative funding sources, both of which help reduce reliance on rates and rate increases. In recent years the District has been very successful in pursuing project funding from the State Revolving Fund and FEMA, and is currently applying for water and energy efficiency project funding from the Bureau of Reclamation and Edison. Internal Control District management is responsible for establishing a system of internal accounting controls designed to provide reasonable assurances that assets of the District are safeguarded against losses from unauthorized use or disposition, and theft. The District's internal controls also ensure the proper recording of financial transactions, and the preparation of financial statements in accordance with generally accepted accounting principles Budgetary Control The District's Board of Directors annually adopts a balanced operating and capital budget prior to the new fiscal year. The budget authorizes expenditures and provides a basis for accountability over the District's enterprise operations and capital projects. Each quarter, management provides the Board with a quarterly budget review to allow Board assessment of staff's progress in meeting goals and objectives, and budget adjustments, if necessary, are requested at the mid-year budget review in January. Debt Administration The District utilizes proceeds from long-term debt, along with reserves and contributions fiom the operating budget, to finance major construction projects. Current debt consists of Revenue Bonds and loans from the State Revolving Fund. iii The District received a credit rating of AA- from Standard and Poors and Fitch when the Revenue Bonds were issued in 2010. Fitch reviewed and upheld this rating in July 2012. Investment Policy The Board of Directors annually adopts an investment policy that conforms to California State Law, District ordinances and resolutions, and the prudent person standard. The objectives of the policy are safety, liquidity, and yield. District funds are normally invested in the State Treasurer's Local Agency Investment Fund (LAIF), and Federal government Treasury notes or agency obligations. Audit and Financial Reporting State law requires the District to obtain an annual audit of its financial statements by an independent Certified Public Accountant. This year, the District's Financial statements were again audited by Teaman, Ramirez, and Smith, CPAs from Riverside, California. Their audit opinion is included in the Basic Financial Statements section of this report. Acknowledgements Preparation of this report was accomplished by the combined efforts of District staff. We appreciate the dedication and professionalism that our staff members bring to the District. We would also like to thank the members of the Board of Directors for their continued support in the planning and implementation of the financial affairs of the District. Respectfully submitted, John Mura General Manager Brian W Tompkins Chief Financial Officer iv East Valley Nater District Year Ending Dime 30, 2012 Rate Payers Board of I Directors AnditorsI I Genera. Manager ChWFiaaaGa Omeer a"Mere H Fiume I I AdmWstratba I I EagY Servic V LegaiCoaasei Assbtut General Manager eerlag: Operatbas Maintenance East Valley Water District Our Mission Statement "Our Mission at East Valley Water District is to provide our customers with a safe and reliable water supply that is delivered at a fair and cost-effective price " East Valley Water District Board of Directors as of June 30, 2012 Name Title Matt Le Vesque President James Morales, Jr. Vice President Kip E. Sturgeon Director George E. "Skip" Wilson Director Ben C. Coleman Director Elected / Current Appointed Term Elected 12/09 —11/13 Elected 12/09 — 11/13 Elected 12/11-11/15 Elected 12/09-11/13 Elected 12/11 — 11/15 Contact Information East Valley Water District John J. Mora, General Manager 3654 E. Highland Avenue, Suite 18 Highland, CA 92346 (909) 889-9501 www.eastvalley.org vi FINANCIAL SECTION 7RSTFAtvtAN. RP.MIR11 A CMU N I. INC. EAMA to vM R c &SMt nrao?s INDEPENDENT AUDITORS' REPORT Board of Directors Fast Valley Water District San Bernardino, California 'We have audited the accompanying financial statements of the business -type activities of Fast Valley Water District (the "District"), as of and for the year ended June 30, 2012, which collectively comprise the District's basic financial statements as Fisted in the table contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative informationhas been derived from the District's June 30, 2011 financial statements ancl, in our audit report dated February 6, 2012, we expressed an unqualified opinion on those financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United ;hates and the State Controller's Minimum Audit Requirements for California Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit providers a reasonable basis for our opinion. In one opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business -type activities of the East Valley Water District as of June 30, 2012, and respective changes in financial position and cash [lows, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2012, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 12, and the Schedule of Funding Progress for Retirees Health Coverage on page 38 be presented to :ampplement due basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standard Boarg who considers it to be an essential part of financial reporting for placing the basic fmanrial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to The required supplementary information in accordance with auditing standards generally accepted United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the infonnation of consistency with management's responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Richard A. Teaman, CPA . Grey W. Fankhanel, Can • :),,id M_ P.m..rez, rPa Javier N. Carrillo, ca.: 4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951274.9500 • 951.274.7828 roc www.trscpas.corr. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the East Valley Water District's financial statements as a whole. The introductory section, the supplementary information as listed in the table of contents, and statistical section, are presented for purposes of additional analysis and are not a required part of the financial statements. The supplementary information section is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. J.td..,,a.,. December 7, 2012 2 MANAGEMENT'S DISCUSSION AND ANALYSIS The District The East Valley Water District (EVWD) is a California Special District established under section 30000 et seq. of the California Water Code. The District is engaged in pumping, treating and distributing water to its customers, as well as maintaining a collection system for residential and commercial wastewater that is delivered for treatment at a plant owned by the City of San Bernardino Water Department. The District serves the City of Highland and portions ol` the City of San Bernardino and the County of San Bernardino in California. The Basic Financial Statements East Valley Water District is a special-purpose government engaged in activities that are supported exclusively by user charges. As such, the District's financial statements are presented in the format prescribed for proprietary funds by the Governmental Accounting Standards Board. The following financial statements for the year ended June 30, 2012 (2011 for comparative purposes only) consist of three interrelated statements designed to provide the reader with relevant, understandable data about the District's financial condition and operating results. They are the Statement of Net Assets, the Statement of Revenue, Expenses, and Changes in Net Assets, and the Statement of Cash Flows. The Statement of Net Assets presents the District's assets and liabilities and the difference, or net, between what is owned and what is owed as of the last day of the District's fiscal year. The Statement of Revenues, Expenses, and Changes in Net Assets describe the financial results of the District's operations for the years reported. These results, or changes in net assets, are the increases or decreases in the bottom line of the Statement of Net Assets. The Statement of Cash Flows (direct method) conveys to financial statement users how the District managed cash resources during the year. This statement converts the Change in Net Assets presented on the Statement of Revenues, Expenses, and Changes in Net Assets into actual cash provided by or used for operations. The Statement of Cash Flows also details how the District obtains cash through financing and investing activities, and conversely, how cash is spent for these purposes. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Summary Financial Information and Analysis Financial Condition During the year ended June 30, 2012, the District's total assets increased by $11.1 million. The increase was primarily in two asset categories: unrestricted cash and capital assets. Unrestricted cash and investments increased by $3.9 million as claims for construction related reimbursements from the State of California Department of Water Resources (DWR), some submitted prior to June 30 2011, were received and used to replenish cash reserves. Capital Assets increases during 2011-12 are addressed in the Capital Assets section of this discussion Condensed Statement of Net Assets (in millions) The decrease in current liabilities of $234 thousand is due to significant construction related payables at the end of the previous fiscal year. The increase in Current Assets, combined with the decrease in Current Liabilities resulted in a current ratio of 2.25:1 at June 30, 2012, compared to a ratio of 1.44:1 at the end of the previous fiscal year. Long Term Debt, current and non-current, increased by $2.7 million (7%) due to borrowing from the Department of Water Resources. All District loans with the DWR are at 0%as discussed further in the following Long Term Debt section and the notes accompanying the attached financial statements. The District's Net Assets totaled $108.6 million at the end of fiscal year 2012, a $6.2 million (6%) increase from net assets at the end of the previous fiscal year. The increase in Net Assets consisted of operating income of $4.0 million, net non-operating expenses of $1,.3 million, and net contributions of cash and infrastructure form developers, and grants from other governments, of 3.5 million 4 6/30/12 WWII Ct} 14.4 8.5 16.2 17.8 120.7 11t1 ` 1.0 .7 152.3 14 Cut* 6.4 6.6 ,_ Nonsaltf5 i �i191Es 37.3 35.2 TptS%i� ' 43.7 41.8 96.9 95.3 .4 .1 iNt 11.3 1 4q-5 TotaFilJlsasts 108.6 99.5' The decrease in current liabilities of $234 thousand is due to significant construction related payables at the end of the previous fiscal year. The increase in Current Assets, combined with the decrease in Current Liabilities resulted in a current ratio of 2.25:1 at June 30, 2012, compared to a ratio of 1.44:1 at the end of the previous fiscal year. Long Term Debt, current and non-current, increased by $2.7 million (7%) due to borrowing from the Department of Water Resources. All District loans with the DWR are at 0%as discussed further in the following Long Term Debt section and the notes accompanying the attached financial statements. The District's Net Assets totaled $108.6 million at the end of fiscal year 2012, a $6.2 million (6%) increase from net assets at the end of the previous fiscal year. The increase in Net Assets consisted of operating income of $4.0 million, net non-operating expenses of $1,.3 million, and net contributions of cash and infrastructure form developers, and grants from other governments, of 3.5 million 4 EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS $95.2 million of the $108.6 million (93.8%) in Net Assets at June 30, 2012 was invested in capital assets, $2.1 million was classified as Restricted, and the remaining $11.3 million classified as unrestricted. $2.9 of the $11.3 million in Unrestricted Net Assets has been designated for emergency and rate stabilization and can only be spent with authorization from the District's governing Board. Activities and Changes In Net Assets Water Operations In FY 2011-12, the District produced 20,982 acre feet of water and sold 19,708 acre feet to consumers. The 1,274 acre feet (6%) water loss is a result of system flushing, well discharge at start up and leaks in the system. This year, the District increased production by 390 acre feet to meet demands, an increase of 1.89%. There was less rainfall in FY 2011-12 with only 8.33 inches in comparison to FY 2010-11 which experienced 22.47 inches. Water Dept. Operating Revenue versus Expenses 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 3CU9 1010 2011 3012 e.r.,,... The volume of water sold during 2011-12 was a 5% increase over 18,712 acre-feet sold during the 2010- 11 fiscal year. This increase in volume, combined with the second phase of a three year rate increase that became effective in October 2011, helped the District realize a $1.76 million increase in water sales, which were $13.4 million for fiscal year 2011-12. P, 12% increase in meter charge revenue was also due to rate increases effective in October 2011. In addition, 109 new services were added during the year, 75 by the annexation of the Eastwood Farms Water Company. Water department operating costs, before general and administration, and depreciation, decreased by $27 thousand in 2011-12. The decrease occurred in spite of increased utilization of contracted treatment units. The District leases mobile treatment units to remove Nitrates and Perchlorate at affected wells at a cost of $497 per acre foot of water treated. When possible, alternate water sources are used to supply surrounding pressure zones, however, a high producing well serving the same zones was off -;line for rehabilitation during a significant portion of 2011-12, forcing increased reliance on the more expensive treated water. Water produced through the treatment units increased 22% to 2,579.5 acre feet during the fiscal year. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Substantial cost savings in the water department involved labor, where District management used a year during which several operations workers retired to develop a Strategic Staffing Plan, and look closely at opportunities for human resource sharing, and/or reallocation prior filling vacated positions. Labor costs for water operations were $223,000 lower than in the previous fiscal year. Sewer Operations Sewer operating revenues consist of System Charges and Treatment Charges. System Charge rates are set by the District to cover the cost of maintaining the District's wastewater collection system and to cover a portion of administrative and general expenses. Treatment Charge rates are established by the City of San Bernardino Water Department, which treats the wastewater produced by the District's customers — the District has no sewer treatment facilities. When treatment charge rates are increased by the City, the District was required to schedule its own rate hearing in order to adopt the increased rates and pass them on to District customers. All sewer treatment revenues collected by the District are directly offset by payments to the City of San Bernardino Water Department; therefore, except when there is a lag between the effective date of City rate increases and the date on which the District can adopt an ordinance to match those rates, sewer treatment has no net effect on the District's operating results. Sewer operating revenues increased 12% to $10.6 million during fiscal year 2011-12. This increase is the combined result of System charge increases that became effective in October 2011, and Treatment charge increases that became effective in January 2012. Sewer system rates were increased 9% leading to an 10% increase in system revenue to $4.1 million. The rate increase was supplemented by an increase in water usage by commercial customers, who are billed sewer charges based on water consumption. Sewer treatment rates were increased 16%,to bring the rates charged to District customers, into alignment with the rates paid to the City of San Bernardino. A disparity in the rates between July and December of 2011 caused the District to incur treatment costs in excess of revenues collected of approximately $230 thousand. Other sewer department operating costs, related to wastewater collection line maintenance and customer billing, fell 17% to $.9 million. Maintenance costs decreased due to a lower number of spot repairs required by the District's sewer main assessment program. As the District begins its next cycle of sewer main video and assessment in 2011-12, maintenance costs will again increase as repairs are performed. +z000,000 10,000 ODD &000A00 600DA00 400000 2DD0AOU Saw Dept. Operating Revenue versus Expenses 3009 3010 3011 3011 —Revenue — E penes s ♦,' tiF i?;ur � r, u �r ��.1 �� 411 N 3009 3010 3011 3011 —Revenue — E penes EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Administrative and general costs for the District decreased 2% to $6.65 million. Significant changes in general and administrative costs included: t) Salaries and wages decreased 5% as 3 senior management positions were vacant during a portion of the year while recruitment was performed, 2) Election costs of $85 thousand were incurred to hold elections for two Board positions 3) Pension cost increases were partially offset by labor concessions to contribute 2% toward pension contributions 4) Vehicle fuel costs decreased 32% due to policy changes regarding on-call vehicle usage and vehicles driven home by management Non- Operating Activities The District's net non-operating expense of $1.3 million reflects a 12.3% increase over the previous year. This increase was the result of a significant increase in interest expense during 2011-12, the first full year of interest paid on the 2010 Revenue Bonds. Condensed Statement of Revenue, Expenses and Changes in Net Assets (in millions) Investment earnings decreased as yields continued to fall. The Apportionment rate paid by the California Local Agency Investment Fund fell by twelve basis points to 0.36% during the fiscal year. Capital Contributions and Transfers Increased developer activity within the District's service area led to the District receiving Capacity Fees of $192 thousand in fiscal year 2011-12, along with contributions of infrastructure valued at $477 thousand. The District also received grants totaling $2.9 million as part of construction funding agreements with the Department of Water Resources for District plants 134 and 150, and the annexation of the Eastwood Farms Water Company. . 7 6/30/12 1111IM1 Water Revenues 18.0 15.8 - Wow Oper.Exp. (14.5) (1�S) rWoes 10.6 9;S 96"t 4W, Exp. (10.1) (1030) Non open. Rev. .2 .3 Non Oper. Exp. (1.5) (1.4)' tbevNQpw Corrtdb. .7 .1 OwantFunds 2.9 8 - Abandoned hweedg. (2) Cha 6.3 ;$_ _ 2.9 89 99.4 _ 108.6 99.4 Investment earnings decreased as yields continued to fall. The Apportionment rate paid by the California Local Agency Investment Fund fell by twelve basis points to 0.36% during the fiscal year. Capital Contributions and Transfers Increased developer activity within the District's service area led to the District receiving Capacity Fees of $192 thousand in fiscal year 2011-12, along with contributions of infrastructure valued at $477 thousand. The District also received grants totaling $2.9 million as part of construction funding agreements with the Department of Water Resources for District plants 134 and 150, and the annexation of the Eastwood Farms Water Company. . 7 EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Categories of Net Assets The District is required to present its net assets in three categories: Invested in Capital Assets, Restricted, and Unrestricted. Invested in Capital Assets The components of Nets Assets Invested in Capital Assets are presented in Note 7 to the accompanying financial statements. The balance at June 30, 2012 is $95,231,129, a decrease of $21 thousand compared to June 30, 2011. The decrease resulted from the receipt of loans from the State Revolving Fund for significant projects that had commenced prior to June 30, 2011. This increase in debt reduced the District's investment in the projects Restricted The District had restricted net assets contributed by developers totaling $295,040 at June 30, 2012. This amount represents capacity fees collected from developers. By law Capacity fees are restricted for use on plant expansion capital projects, or debt service on such projects. However, under the District's Designated Funds Policy, use of restricted funds for a certain capital project must be approved by the Board of Directors. Also presented as Restricted Net Assets, Non -spendable, is an amount representing external interests in the North Fork Water Company, of which the District is a majority shareholder, and which is presented as a blended component unit in these financial statements. Unrestricted EVWD had unrestricted Net Assets of $11.3 million at June 30, 2012. Of that amount, the board of directors has designated $2.1 million as an emergency reserve. Capital Assets The District spent approximately $7.9 million for expansion or replacement of property, plant, and equipment during 2011-2012. These amounts are reflected in Utility Plant, or as additions to Construction In Progress, in the accompanying financial statements. Following is a discussion of the facilities and equipment constructed and purchased Placed In Service During the 2011-2012 fiscal year, District crews and contractors completed work on the following: • Rehabilitation of two wells Installation of new water distributions system, including 2,584' of water mains, to connect 81 services formerly served by a mutual water company Completion of the implementation of GIS EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Utility Plant in Semite — June 30eh (in millions) Water Source of Supply 15.1 12.2 Pumping 8.5 8.5 Transmission & Distribution 78.1 76.7 Treatment 12.0 12.0 Wastewater Collection Lines 24.6 24.6 General Bldgs & Improv 1.6 1.6 Equipment 7.7 6.8 Total 147.6 142.4 Construction In Progress (CIP) Construction in progress increased $5.8 million to $14.3 million between June 30, 2011 and June 30, 2012. With approximately 100 jobs in progress, additions to CIP totaled $8.2 million, while $2.4 was removed by either capitalizing or expensing completed projects. million was transferred out. Approximately half of the costs removed from CIP were related to land purchased for future headquarters facilities, with the balance consisting of completed jobs that were either capitalized or expensed. Approximately 94% of costs in CIP at June 30, 2012 were incurred on 3 projects. These are: Land acquisition, planning and design of Plant 150, a perchlorate treatment plant in the District's lower pressure zone. • Design and materials acquisition for a 5.2 mile 30" pipeline that will connect the District's lower pressure zone to higher pressure zones • Construction for expansion and technology upgrade of the District's surface water treatment plant (Plant 134) Design work for Plant 150 is complete, and an applications for low cost construction financing is being completed for submittal to the Department of Water Resources. Once financing is secured, the project will move to the construction phase. The design of the 30" pipeline is complete and will be bid in early 2013; proceeds from the District's 2010 Revenue Bond issue will be used to finance the majority of this project. The District is negotiating a cost sharing agreement with the City of Highland, which has a storm drain project that will follow much of the same right-of-way, in order to achieve significant savings for both agencies on these projects. Plant 134 will be completed at the end of 2012. The (zpacity of the plant will double to 8 million gallons per day, and the water produced by the plant will serve many of the District's pressure zones. The estimated cost at completion is $11 million which is being financed by grants and 0% interest loans form the state Department of Water Resources, and a portion of the proceeds from the 2010 Revenue Bond issue. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Future Capital Improvements - Water The District's ability to meet regulatory requirements, meet increased demand, and increase efficiencies in conducting District business are the driving forces by which District management develops long term capital plans. Regulatory requirements are being met with the upgrade to the District's surface water treatment plant (Plant 134) and the addition of an ion exchange treatment plant (Plant 150) to treat water quality issues in the District's lower zone. Currently the District treats water for Nitrates, Perchlorate, Uranium, and PCE. Capacity challenges are being addressed by the 30" pipeline discussed above, which will move water from lower zones, where groundwater is abundant, to higher zones, which have limited access groundwater basins. Boosting capacity is needed to move the water uphill, so future projects include booster stations at District Plants 40, 134, and future Plant 150.. The District has also commenced an aggressive implementation plan for installation of Automated Meters (AMR). Utilization of AMR technology will allow the District to repurpose meter reading staff for water conservation and other customer centric efforts. The District's Capital Improvement Plan allocates approximately $1 million per year over 5 years in order to serve the entire District through automated meters. Future Capital Improvements - Wastewater The District is beginning it's second cycle of video and assessment of all 250 miles of its wastewater collections lines in accordance with California State Water Resources Control Board order no. 2006-0003. Pipes identified as damaged, and at risk of sewer spills or seepage that can contaminate surface or ground waters, are being repaired. Pipelines that are assessed as undersized are further monitored for flows. If flow monitoring confirms a pipeline is nearing capacity, it is placed on a schedule for replacement in the District's Sewer Master Plan, which will be updated in fiscal year 2012-13. Long Term Debt / Credit The District's long-term debt consists of an Installment Purchase Agreement (IPA) with the East Valley Water District Financing Authority (Authority), design and construction loans from the California Department of Water Resources, and a capital lease for phone equipment. Outstanding balances as of June 30, 2012 were as follows: 2010 IPA DWR loan -Arroyo Verde DWR loan -Eastwood Farms DWR loan -Plant 134 DWR loan -Plant 150 Design Capital lease -Phone Equip $ 32,490,000 125,098 390,482 3,360,760 100,000 27,139 $ 36,493,479 The 2010 IPA between the District and the Authority provides funds sufficient to make semi-annual payments on series 2010 East Valley Water District Financing Authority Refunding Revenue Bonds. As explained in Note 5 to the accompanying financial statements, proceeds from those bonds were used to retire debt previously issued by the District and its component units, and to provide $16 million for capital improvements. 10 EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS The Arroyo Verde and Eastwood Farms DWR loans are ultimately the obligation of property owners within Assessment Districts that replaced small mutual water companies operating within the District's service area. Semi- annual loan payments are paid by assessment on property within the assessment district,. A second DWR loan agreement for the District's Plant 134 project was finalized on December 21, 2010. Under the agreement, the District can borrow up to $7,001,964 at 0% interest. The loan obligation increases as construction on the project progresses and the District requests reimbursement from the State Revolving Fund (SRF). The project is scheduled for completion in September 2012, at which time the total amount of the loan will be obligated. Semi-annual principal payments will begin in January 2013. At June 30, 2012, the District had borrowed $3,360,760 of available loan funds. All scheduled debt payments for fiscal year 2011-12 were paid timely. Outstanding Long-Terrn Debt June 30th 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 5,000,000 '0,000,000 5,000,000 2010 2011 202 2013 •2001 COPS. •2004ISA -. 2006 ISA nUNR bans -20'OBmds Standard & Poor's and Fitch rated the EVWDFA 2010 Refunding Revenue Bonds at the time of issuance. Both agencies gave the bonds a rating of AA-. Fitch reaffirmed its rating in July 2012. Dun & Bradstreet, based on audited financial statements and creditor input, also rates the District. The rating given by D&B is currently 5A1 accompanied by a financial condition assessment of 'strong', which is no change from previous years. New Regulation Water I he District continues to monitor proposed regulations related to Radon, issued by the EPA in May 2000. Many water agencies have challenged some of the findings in the proposal, and the District is sponsoring proposed changes that would ease treatment requirements. 11 EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Rate Increases In June 2010, an independent financial consulting firm completed updates to the District's water and sewer rate studies. The study projected revenue requirements for fiscal years 2009-10 through 2019-20, and incorporated the District's Capital Improvement Program, future operating costs adjusted for inflation, debt service expenses, and the funding of three reserves: the Operating Reserve, a Rate Stabilization Reserve, and a Replacement Reserve. On July 15"' 2010, the District Board of Directors approved rate increases for both water services, and sewer collection system services, to be phased in over a three year period. Phase two became effective October 1, 1011, phase three became effective October 1, 2012 On November 22, 2011, the District Board of Directors approved an increase in Sewer Treatment rates in order to offset increases in rates charged by the City of San Bernardino for sewer treatment services provided to District customers. The Sewer Treatment rate increase became effective January 1, 2012. Contacting the District's Financial Management This financial report is designed to give our customers / ratepayers and creditors and investors a general overview of the District's finances, and to demonstrate the District's accountability for money it receives, and stewardship over facilities it maintains. If you have questions about this report, or need additional information, contact the District's Finance Department at 3654 E. Highland Ave, Suite 18, Highland, California 92346, or call (909) 381-6463. 12 BASIC FINANCIAL STATEMENTS East Valley Water District Statement of Net Assets June 30, 2012 ASSETS Current Assets: Cash and Cash Equivalents Investments Accounts Receivable, Net Interest Receivable Other Receivables Due from Other Governments Inventory Prepaid Expenses Total Current Assets Non -Current Assets: Restricted Cash and Cash Equivalents Assessments Receivable Deferred Charges Capital Assets not being Depreciated Capital Assets, net (Note 4) Total Non -Current Assets Total Assets The accompanying notes are an integral part of this statement. 13 16,171,646 519,709 537,099 27,478,232 93,241,956 137,948,642 152,326,996 17,661,578 89,268 572,384 22,428,944 91,962,397 132,714,571 141,237,856 For Comparative Purposes Only 2012 2011 $ 4,694,562 $ 761,485 3,622,192 3,673,049 3,154,530 1,657,687 22,046 29,045 5,739 155,415 1,782,079 1,009,898 935,892 937,131 161,314 299,575 14,378,354 8,523,285 16,171,646 519,709 537,099 27,478,232 93,241,956 137,948,642 152,326,996 17,661,578 89,268 572,384 22,428,944 91,962,397 132,714,571 141,237,856 East Valley Water District Statement of Net Assets - Continued June 30, 2012 LIABILITIES Current Liabilities: Accounts Payable and Accrued Expenses Accrued Payroll and Benefits Customer Service Deposits Construction Advances and Retentions Accmr:ed Interest Payable Current Portion of Compensated Absences Current Portion of Long -Term Debt Total Current Liabilities Non -Current Liabilities: Compensated Absences, less current portion Other Post Employment Benefits Long-term Debt, less current portion Total Non -Current Liabilities Total Liabilities NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted Expendable Restricted - Nonspendable Unrestricted Total Net Assets The accompanying notes are an integral part of this statement. 14 2012 $ 2,208,580 211,228 1,703,189 204,192 363,690 349,800 1,328,644_ For Comparative Purposes Only 2011 $ 2,644,045 210,044 1,679,974 259,845 368,965 374,467 1,058,928 6,369,323 6,596,268 313,518 202,123 36,820,547 37,336,188 43,705,511 96,919,789 295,040 121,210 11,285,446 $ 108,621,485 607,866 260,637 34,297,949 35,166,452 41,762,720 95,251,763 103,029 4,120,344 $ 99,475,136 East Valley Water District Statement of Revenues, Expenses and Changes in Net Assets Year Ended June 30, 2012 OPERATING REVENUES Water Sales Sewer Treatment Charges System Charges Other Charges Total Operating Revenues OPERATING EXPENSES Water Department: Source of Supply Pumping Treatment Transmission and Distribution Customer Accounts Total Water Department Sewer Department: Wastewater Collection Customer Accounts Sewer Treatment Total Sewer Department Administrative and General Operating Expenses Before Depreciation Depreciation Total Operating Expenses Operating Income (Loss) The accompanying notes are an integral pan of this statement. 15 2012 For Comparative Purposes Only 2011 $ 13,426,700 $ 11,544,185 6,470,322 5,761,956 8,290,143 7,399,016 464,852 500,833 28,652,017 25,205,990 658,481 853,162 2,700,867 2,853,462 1,412,079 1,080,954 1,449,491 1,515,559 501,050 457,254 6,721,968 6,760,391 310,834 446,262 439,149 457,252 6,800,369 5,995,720 7,550,352 6,899,234 6,653,413 6,779,585 20,925,733 20,439,210 3,739,096 3,929,268 24,664,829 24,368,478 3,987,188 837,512 East Valley Water District Statement of Revenues, Expenses and Changes in Net Assets - Continued Year Ended June 30, 2012 NON-OPERATING REVENUES (EXPENSES) Investment Income Cooperative Agreements Grants Claims / Settlements Other Income Interest Expense Amortization Loss on Disposal of Capital Assets Total Non -Operating Revenues (Expenses) htcome (Loss) Before Contributions, Transfers and Special Item CONTRIBUTIONS AND TRANSFERS Utility Plant Dedicated Capacity Charges Capital Grant -Plant 134 Total Contributions and Transfers SPECIAL ITEM Abandoned Investigations Change in Net Assets For Comparative Purposes Only 2012 2011 $ 84,094 $ 87,589 102,288 41,157 880 128,821 - 791 33,926 24,301 (1,451,516) (1,286,252) (35,284) (32,851) (140,3' (1,265,612) (1,176,845) 2,721,576 (339,333) 476,937 - 192,01 l 103,029 2,893,874 881,077 3,562,822 984,106 - (206,(157) 6,284,398 438,716 Prior Period Adjustment 2,861,951 - Total Net Assets, Beginning Total Net Assets, Ending The accompanying notes are an integral part of this statement. 16 99,475,136 99,036,420 $ 108,621,485 $ 99,475,136 East Valley Water District Statements of Cash Flows Year Ended June 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers Cash Paid for Employee Services Cash Payments to Suppliers Cash from Other Sources Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Grant Funds Received Capital Contributions Proceeds from Issuance of Capital Debt Principal Paid on Capital Debt Interest Paid on Capital Debt Acquisition and Construction of Capital Assets Loans to Eastwood Farms Property Owners 6,805,427 5,071,742 2,139,521 For Comparative 192,011 Purposes Only 2012 2011 (1,072,353) (19,237,788) $ 28,123,339 $ 25,031,455 (6,942,741) (6,708,881) (14,661,941) (13,353,241) 286,770 102,409 6,805,427 5,071,742 2,139,521 - 192,011 103,029 3,460,760 34,899,669 (1,072,353) (19,237,788) (1,443,365) (1,163,056) (7,874,465) (6,047,056) (37,559) Net Cash Provided (Used) by Capital and Related Financing Activities (4,635,450) 8,554,798 CASH FLOWS FROM INVESTING ACTIVITIES Interest Received from Investments 115,732 72,856 Acquisition of Investments in Debt Securities (3,770,997) (3,673,049) Proceeds from Sales of Investments in Debt Securities 3,797,214 3,058,255 Loan Collections from AVAD Property Owners 10,070 23,933 Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year Cash and Cash Equivalents - End of Year RECONCILIATION TO STATEMENT OF ACTIVITIES Cash and Cash Equivalents Restricted Cash and Cash Equivalents The accompanying notes are an integral part of this statement. 17 152,019 (518,005) 2,321,996 13,108,535 18,544,212 5,314,528 $ 20,866,208 $ 18,423,063 $ 4,694,562 $ 761,485 16,171,646 17,661,578 $ 20,866,208 $ 18,423,063 East Valley Waller District Statements of Cash Flows - Continued Year Ended June 30, 2012 2012 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: For Comparative Purposes Only 2011 Net Operating Income (Loss) $ 3,987,188 $ 837,512 Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation 3,739,096 3,929,268 Miscellaneous Income 137,094 102,409 Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (496,240) (291,885) (Increase) Decrease in Other Receivables 149,676 - (Increase) Decrease in Inventory 1,239 38,346 (Increase) Decrease in Prepaids 156,526 (169,189) Increase (Decrease) in Trade Accounts Payable (460,369) 457,863 Increase (Decrease) in Accrued Salaries and Benefits (57,330) 14,652 Increase (Decrease) in Compensated Absences (319,015) 35,416 Increase (Decrease) in Customer Deposits 23,215 20,040 Increase (Decrease) in Developer Deposits (55,653) 97,310 Total Cash Provided (Used) by Operating Activities $ 6,805,427 $ 5,071,742 NON-CASH INVESTING, CAPITAL AND NONCAPITAL FINANCING ACTIVITIES: Capital Assets Obtained Through Debt Financing $ 390,482 $ - Capital Assets Contributed by Developers 476,937 - The accompanying notes are an integral part of this statement. 18 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) Reporting Entity The East Valley Water District (the District) is a special district formed in 1954, as a result of an election by local residents who desired water service by a public water agency. Later, as the population increased, a modem sewer system was needed to replace the septic tanks used at the time. Citizens voted to give the District responsibility for that service. The District encompasses an area of approximately 25 square miles and provides water and sewer service to the City of Highland, parts of the City of San Bernardino, and unincorporated parts of the County of San Bernardino, California. The East Valley Public Facilities Corporation (Corporation), the East Valley Water District Financing Authority (Authority), and the North Fork Water Company (Company) are component units of the East Valley Water District. A component unit is an entity which is financially accountable to the primary government, either because the primary government appoints a voting majority of the component unit's board, or because the component unit will provide a financial benefit or impose a financial burden on the primary government. The Corporation, Authority, and Company are blended component units. Only North Fork Water Company prepares separate financial statements. The Corporation was incorporated in October 1986 pursuant to the nonprofit public benefit corporation law of the State of California to assist the District in acquiring and constructing public improvement facilities. It is governed by a Board of Directors comprised of the District's Board of Directors. The Corporation has issued debt, secured solely by installment payments payable under an installment purchase agreement between the District and the Corporation. All of the debt issued by the Corporation was retired in October 2010. The Authority was created in August 2010 by a joint exercise of powers agreement for the purpose of financing public capital improvements. It is governed by a Board of Directors comprised of the District's Board of Directors. The Authority issued debt in October 2010 which is secured solely from installment payments under an installment purchase agreement entered into by the District and the Authority. The Company was established in February 1885 to deliver water, taken from the Santa Ana River, to its property owner /shareholders. The Company is governed by a Board of Directors comprised of, and elected by, Company shareholders. The District has purchased shares of Company stock as they become available in order to secure rights to the Santa Ana River water and have it delivered to the District's surface water treatment plant. At June 30, 2012, the District owned 5,869 of 7,156 outstanding Company shares. Due to the number of Company shares owned, the District is able to appoint a majority of the Company's governing board and is therefore financially accountable for the Company. The Company's financial statements have been included in the accompanying financial statements as a blended component unit. Copies of the Company's financial statements may be obtained from the District's Finance Department at 3654 E. Highland Ave, Suite 18, Highland, California 92346. B) Measurement Focus, Basis of Accounting and Financial Statement Presentation The District uses the economic resources measurement focus and the accrual basis of accounting. Accordingly, revenues are recognized when they are earned and expenses are recorded when the liability is incurred, with the following exception; a portion of June water usage is not accrued, and is therefore not recognized as revenue until 19 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued B) Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued the following year; this is due to the large number of District services which require an almost continuous billing cycle. This exception is consistent with prior years. The District follows all GASB pronouncements, and all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARB) issued on or before November 30, 1989 unless they conflict with or contradict GASB pronouncements. The District applies only GASB pronouncements issued after November 30, 1989. On Judy 1, 2000, the District adopted the provisions of GASB Statement No. 34, 'Basic Financial Statements - and Managements Discussion and Analysis -for State and Local Governments." Statement 34 established standards for external financial reporting for all state and local goveiTmtental entities, which includes a statement of net assets, a statement of revenues, expenses, and changes in net assets, and a statement of cash flows. It requires classification of net assets into three components - invested in capital assets, net of related debt, restricted; and unrestricted. These classifications are defined as follows: Anvested in Capital Assets, Net of Related Debt - This component of net assets consists of capital assets, including restricted capital assets, net of accumulated depreciation reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt prcceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net assets component as the unspent proceeds. Restricted - This component of net assets consists of constraints placed on net assets through external constraints imposed by creditors (such as through debt covenants), grantors, contributions, or laws and regulations of other governments, or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Assets - This component of net assets consists of net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt." C) Comparative Data Prior year data has been included where practical for comparison purposes only. The prior year data does not represent a complete presentation in accordance with generally accepted accounting principles. Il) Inventory Valuation Inventories are valued at cost using the average -cost method. 20 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued E) Capitalization and Depreciation Capital assets purchased or constructed by the District are recorded at cost. Capital assets contributed to the District are recorded at estimated fair value. The estimated fair value, determined by the District's engineer, is the amount the District would have to pay for construction of comparable facilities. The District has a capitalization threshold of $5,000. Depreciation is computed using the straight-line method over the estimated useful lives of the various assets. Water canals, water and sewer lines are depreciated over 25 to 50 years; office equipment and vehicles are depreciated over 5 years. Water stock and rights contributed to the District are recorded at the same value the District is currently paying for the purchase of similar stock. F) Reclassifications Certain reclassifications have been made to the prior year information to conform to the current year presentation. See Note 14 for additional details. G) Restricted Assets Certain assets of the District are restricted in use by ordinance or debt covenant and accordingly are shown as restricted assets on the accompanying Statements of Net Assets. Unexpended Bond proceeds are set aside for capital improvements, District deposits into Bond trustee accounts are to be used for debt service, and utility deposits must be returned to the customers at their request after their account has been paid timely for 12 consecutive months, or when their account is closed. H) Cash and Cash Equivalents For the purposes of the statement of cash flows, cash and cash equivalents have been defined as demand deposits and highly liquid investments purchased with an original maturity of 3 months or less. The District invests funds with the Local Agency Investment Fund (LAIF) and Money Market Mutual Funds. Due to the high liquidity of these investments, these funds are classified as cash equivalents. I) Investments The District has adopted the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Pools (GASB 31), which require governmental entities to report certain investments at fair value in the statement of net assets and recognize the corresponding change in the fair value of investments in the year in which the change occurred. 21 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued J) Compensated Absences The District has a policy whereby an employee can accumulate unused sick leave and vacation. Sick leave is to be used for extended periods of sickness; however, upon termination or retirement, a portion will be paid as additional benefits to the employee. At retirement or termination, employees who have accumulated over ten years of service will be paid between 40 to 70% of their unused sick leave (based upon their balance of unused sick leave) at their regular payroll rates in effect at the date of termination. Also, employees that obtain 196 unused sick hours can cash out 40 hours at their discretion. The District has provided for these future costs by accruing a range of the earned and unused sick leave and 100% of the earned and unused vacation. K) Classification of Revenue As an enterprise (proprietary) fund, the District classifies its revenues into three classifications: operating revenue, non- operating revenue, and contributions. Operating revenues are defined as revenues realized by the District in exchange for providing its primary services of water distribution and wastewater collection to its customers. Non-operating revenues are those derived from the investment of cash reserves and from the disposal of excess property, and also include those resources received from entities other than customers, such as governmental agencies and developers, for purposes not related to capital improvement. Donated plant and cash received for capital improvement without the requirement that the District give resources in exchange are recorded as contributions. L) Use of Restricted Resources The District uses restricted resources, prior to using unrestricted resources, to pay expenses meeting the criteria imposed on the use of restricted resources by a third party. M) Postemployment Healthcare Benefits On July 1, 2008, the Agency adopted the provisions of Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). This statement requires the annual cost of other postemployment benefits other than pensions (OPEB) and the unfunded actuarial liabilities for post service to be reported in the government financial statements. Previously, the cost; of such benefits were generally recognized as expenses when incurred by retirees. Under GASB 45, the cost of these benefits will be estimated over the years employees are providing service. GASB 45 also requires comprehensive disclosure regarding OPEB activities, see Note 11, Postemployment Benefits Other Than Pension. N) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 22 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS Cash and Investments as of June 30, 2012 are classified in the accompanying financial statements as follows: Cash and Cash Equivalents $ 4,694,562 Restricted Cash and Cash Equivalents 16,171,646 Investments 3,622,192 Total $ 24,488,400 Cash and investments as of June 30, 2012 consist of the following: Cash on Hand $ 1,750 Deposits with Financial Institutions 1,525,722 Money Market Accounts with Financial Institutions 1,943,804 Investment in Local Agency Investment Fund 17,394,932 Investment in Debt Securities 3,622,192 Total Cash and Investments $ 24,488,400 Investments Authorized by the California Government Code and the District's Investment Policy The table below identifies the investment types that are authorized by the District's investment policy and in accordance with Section 52601 of the California Government Code The table also identifies certain provisions of the District's investment policy that address interest rate risk and concentration of credit risk. Authorized Maximum Authorized Required Investment Type Maturity Limit Rating Bonds and Certificates of Participation by EV WD 5 years None None U.S. Treasury Bills, Notes or Bonds 5 years None None State Registered Warrants, Notes or Bonds 5 years None None Notes and Bonds of Other Local California Agencies 5 years None None U.S. Agencies 5 years None None Negotiable Certificates of Deposits 5 years 30% None Money Market Mutual Funds and Mutual Funds 5 years 15% 2 - AAA Collateralized Bank Deposits 5 years None None Local Agency Investment Fund (LAIF) N/A None None At June 30, 2012, the District had no investments in repurchase agreements and did not utilize this investment media during the reporting year. As a matter of investment policy, the District does not borrow funds through the use of reverse repurchase agreements. 23 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS - Continued Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest: rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the District minimizes its exposure to this type of risk is by investing in investments with laddered maturity dates. As of June 30, 2012, the District had the following investments and maturities: Investment Type Freddie Mac GNMA Federal Home Loan Bank Fannie Mae U.S. Treasury Bonds LAIF Money Market Mutual Funds Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the District's investment policy, and the actual rating as of year end for each investment type. Investment Freddie Mac GNMA Federal Home Loan Bank Fannie Mae I.I.S. Treasury Bonds L.AIF Money Market Mutual Funds Total Average Fair Value Maturity $ 655,098 3.42 years 381,410 2.83 years 932,283 2.17 years 353,667 .55 years 1,299,734 1.17 years 17,394,932 N/A 1,943,804 N/A Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the District's investment policy, and the actual rating as of year end for each investment type. Investment Freddie Mac GNMA Federal Home Loan Bank Fannie Mae I.I.S. Treasury Bonds L.AIF Money Market Mutual Funds Total Disclosure Related to Concentration of Credit Risk The District's policy places no limits on amounts invested in any given issuer beyond that stipulated by the California Government Code. At June 30, 2012, there were no investments (other than external pools, U.S. Government Securities and Money Market Mutual Fonds) that exceeded 5% of the District's total investments. 24 Rating at Minimum Exempt From Year End Not Fair Value Leg2.l Rating Disclosure _AAA Rated $ 655,098 N/A $ $ 655,098 $ 381,410 N/A 381,410 932,283 N/A 932,283 353,667 111/A 353,667 1,299,734 N/A 1,299,734 17,394,932 N/A 17,394,932 1,943,804 N/A 1,943,804 $ 22,960,928 $ 1,681,144 $ 3,884,852 $ 17,394,932 Disclosure Related to Concentration of Credit Risk The District's policy places no limits on amounts invested in any given issuer beyond that stipulated by the California Government Code. At June 30, 2012, there were no investments (other than external pools, U.S. Government Securities and Money Market Mutual Fonds) that exceeded 5% of the District's total investments. 24 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS - Continued Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code requires California banks and savings and loan associations to secure deposits by pledging government securities as collateral. Such collateralization of public funds is accomplished by pooling. As such, collateralized securities are held by the pledging financial institution's agent on behalf of the District. The market value of the pledged securities must equal at least 110% of Districts deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The District may waive collateral requirements for deposits which are fully insured by Federal depository insurance. As of June 30, 2012, the District's deposits with financial institutions that were in excess of federal depository insurance limits amounted to $1,398,208. On October 3, 2008, the Emergency Economic Stabilization Act of 2008 became effective, which temporarily covers non-interest bearing deposit accounts without limit and increases the federal deposit insurance limit from $100,000 to $250,000 for interest bearing deposit accounts. The limits will return to $100,000 for all deposit accounts held with a single financial institution after December 31, 2013. Investment in State Investment Pool The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has reported to its participating agencies that, as of June 30, 2012, the carrying amount (at amortized cost) of the pool was $60,514,457,551 and the estimated fair value of the pool was $60,588,263,603. The District's proportionate share of the market value (as determined by LAIF) as of June 30, 2012, was $17,416,426. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain State funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. 3) RESTRICTED CASH AND CASH EQUIVALENTS Restricted cash and cash equivalents at June 30, 2012 are restricted as follows: 2010 Revenue Bonds Construction projects $ 12,550,987 Capacity Fees from Developers 295,040 Customer Deposits 1,703,189 Construction Advances 204,192 2010 Revenue Bonds Debt Service 1,260,706 AVAD Construction Loan Debt Service 64,699 North Fork Water Company 92,833 Total $ 16,171,646 N& East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 4) CAPITAL ASSETS A summary of changes in capital assets for the year ended June 30, 2012 is as follows: 26 Beginning of End of Year _ Additions Deletions Year Water Fund Non -Depreciable Assets Land and Easements $ 8,505,018 $ - $ - $ 8,505,018 Water Rights 727,585 727,585 Construction in Progress 8,281,628 _ 8,205,206 (2,163,167) 14,323,667 Total Non -Depreciable Assets 17,514,231 8,205,206 (2,163,167) _23,556,270 Depreciable Assets Source of Supply 14,955,521 141,106 (7,332) 15,089,295 Pumping Plant 8,553,297 - 8,553,297 Treatment Plant 12,026,847 - 12,026,847 Transmission and Distribution Plant 76,662,413 1,441,905 (21,691) 78,082,627 General Plant 5,086,150 _ 372,925 (36,644) 5,422,431 Total Depreciable Assets 117,284,228 1,955,936 (65,667) 119,174,497 Accumulated Depreciation Source of Supply (3,018,924) (410,626) 7,332 (3,422,218) Pumping Plant (3,164,551) (272,017) - (3,436,568) Treatment Plant (3,551,809) (480,537) - (4,032,346) Transmission and Distribution Plant (23,954,090) (1,616,949) 21,691 (25,549,348) General Plant (3,249,200) (296,199) 36,644 (3,508,755) Total Accumulated Depreciation (36,938,574) (3,076,328) 65,667 (39,949,235) Water Fund Capital Assets, Net 97,859,885 7,084,814 (2,163,167) 102,781,532 Sewer Fund Non -Depreciable Assets Land and Easements 3,921,962 - - 3,921,962 Construction in Progress 163,355 16,823 (180,178) __ Total Non -Depreciable Assets 4,085,317 16,823 (180,178) _1,921,962 Depreciable Assets Wastewater Collection Plant 24,612,465 - 24,612,465 General Plant 3,285,397 515,909 (21,838) 3,779,468 Total Depreciable Assets 27,897,862 515,909 (21,838) 28,391,933 26 4) CAPITAL ASSETS - Continued East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 Beginning of End of Year Additions Deletions Year Sewer Fund - Continued Accumulated Depreciation Wastewater Collection Plant $ (11,222,401) $ (426,845) $ - $ (11,649,246) General Plant (2,511,909) (235,922) 21,838 (2,725,993) Total Accumulated Depreciation (13,734,310) (662,767) 21,838 (14,375,239) Sewer Fund Capital Assets, Net 18,248,869 (130,035) (180,178) 17,938,656 Total Capital Assets, Net $ 116,108,754 * $ 6,954,779 $ (2,343,345) $ 120,720,188 " Included in the capital assets, beginning of year column above, is a $1,717,413 prior year period adjustment to increase net capital assets for the North Fork Water Company as described in Note 14. 5) LONGTERM DEBT The schedule below summarizes changes in long-term debt during the year ended June 30, 2012: 2010 Refunding Bonds Unamortized Premium Deferred Amount on Refunding Department of Water Resources Contracts: AVAD Construction Plant 134 Construction Plant 150 Design EFAD Construction Net Other Post Employment Benefit Obligation Capital Lease Total Beginning Retirements / Ending Current Long-term Balance Additions Payments Balance Portion Portion $ 33,545,000 $ - $ (1,055,000) $ 32,490,000 $ 1,175,000 $ 31,315,000 2,152,508 - (80,741) 2,071,767 80,741 1,991,026 (510,222) - 94,167 (416,055) (94,167) (321,888) 131,861 - (6,763) 125,098 6,762 118,336 - 3,360,760 - 3,360,760 116,700 3,244,060 - 100,000 - 100,000 20,000 80,000 - 390,482 - 390,482 13,016 377,466 260,637 - (58,514) 202,123 - 202,123 37,730 - (10,591) 27,139 10,592 16,547 $ 35,617,514 $ 3,851,242 $ (1,117,442) $ 38,351,314 $ 1,328,644 $ 37,022,670 2010 Refunding Revenue Bonds On October 29, 2010, the District issued $33,545,000 of East Valley Water District Financing Authority Refunding Revenue Bonds, Series 2010 (2010 Bonds), with interest rates ranging from 2.00% to 5.00%. The purpose for issuing the 2010 Bonds was to provide $16,000,000 for future capital improvements, and for refunding virtually all of the Districts outstanding long-term debt. The refunded debt included 1) $5,935,000 in 2001 Certificates of Participation bearing interest rates ranging from 4.25% to 5.00%, 2) a $7,867,528 balance on a 2004 Installment Sale Note bearing interest at 4.50%, and 3) a $5,109,854 balance on a 2006 Installment Sale Note bearing interest at 4.95%. 27 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 5) LONGTERM DEBT -Continued The refunding portion of the 2010 Bonds ($17,170,000) were issued at a premium of $1,630,726, and after paying issuance costs of $318,849, net proceeds were $18,481,877 The net proceeds, combined with a $920,318 sinking fund for 2001 COP debt service, were sufficient to accomplish the refunding of the existing debt. The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt of $259,548. This difference is included in the amount reported in the accompanying financial statements as a deduction from long-term debt, and is being charged to operations through the year 2024 using the straight-line method of amortization. The District completed the refunding to decrease total debt service over the next 14 years by $1,733,043 and to obtain an economic gain (difference between the present value of the old and new debt service payments) of $1,833,442. Department of Water Resources Contract OOC412 - Arroyo Verde Assessment District On June 30, 2004, the District entered into a Funding Agreement for replacement of distribution pipelines in the section of the District's service area formerly served by the Arroyo Verde Water Company. The original loan amount was $169,052 with an annual interest rate of 0%. Semi-annual payments of $3,381 are due through January 2031 and are secured by annual assessments to property owners within the Arroyo Verde Assessment District. Department of Water Resources Contract 10CX110 - Plant 134 On December 21, 2010, the District entered into a Funding Agreement to upgrade treatment methods utilized by 0te District's surface water treatment plant (Plant 134). The a:mount of the loan funding available under the agreement is $7,001,964 with an annual interest rate of 0%. If all of the available loan funding is borrowed, semi-annual payments of $116,699 will commence in January 2013, and will continue over a repayment term of 30 years. Repayment of the loan is secured by a pledge of net revenues of the District's water operating fund. As of June 30, 2012, $3,360,000 :had been borrowed by the District under this loan agreement. Department of Water Resources Contract IOPX102 - Plant 150 Design On March 11, 2011 the District entered into a Funding Assessment to assist in financing the cost of studies and planning of treatment facilities to address water quality issues threatening the District's lower zone wells (Plant 150). The, amount of the loan is $100,000 with an annual interest rate of 0%. Semi-annual payments of $10,000 are due through July 2017 and are secured by a pledge of net revenues of the District's water operating fund. Department of Water Resources Contract I ICX101 - Eastwood Farms Assessment District On June 15, 2011 the District entered into a Funding Agreement for replacement of distribution pipelines in the section of the District's service area formerly serviced by the Eastwood Farms Water Users Association. The amount of the loan is $390,482 with an annual interest rate of 0%. Semi-annual payments of $6,508 are due for 30 years through June 2042. Repayment of the loan is secured by annual assessments to property owners within the Eastwood Farms Assessment District. 28 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 5) LONGTERM DEBT - Continued Capital Lease - Phone Equipment In August 2009, the District entered into a capital lease commitment for telecommunications equipment. The amount financed and gross amount of assets acquired was $55,556 to be repaid over a sixty month period with interest at 11.09%. The agreement requires monthly installment payments of principal, interest and taxes of $1,223 beginning in August 2009 and continuing through July 2014. As of June 30, 2012, accumulated depreciation on the telecommunications equipment was $13,889 resulting in a net book value of $41,667. The aggregate debt service requirements to maturity for long-term debt as of June 30, 2012 are as follows: Year Ending June 30, Principal Interest Total 2013 $ 1,210,346 $ 1,419,715 $ 2,630,061 2014 1,258,395 1,382,324 2,640,719 2015 1,305,989 1,331,875 2,637,864 2016 1,354,778 1,273,688 2,628,466 2017 1,419,778 1,213,213 2,632,991 2018-2022 7,303,890 5,025,588 12,329,478 2023-2027 4,878,890 3,726,475 8,605,365 2028-2032 4,198,748 2,878,931 7,077,679 2032-2037 5,120,080 1,892,550 7,012,630 2038-2042 5,081,825 516,000 5,597,825 Total $ 33,132,719 $ 20,660,359 $ 53,793,078 Security for debt is as follows: Debt Security 2010 Refunding Revenue Bonds and Department of Water Resources Construction Loans. The District is required to maintain and encumber net revenues, as defined by the revenue bond trust agreement and State of California Department of public Health Funding agreements of at least 120% of District's annual debt service (principal and interest). At June 30, 2012, net water revenues represented 338% of the annual water debt service and net sewer revenues represented 1,052% of the annual sewer debt service. FM East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 6) COMPENSATED ABSENCES Compensated absences are comprised of unused vacation leave and a limited amount of sick leave which is accrued as earned in accordance with District policy. The District's liability for compensated absences is determined annually. Current portions are determined based on estimates of usage, amounts in excess of 196 hours that will be voluntarily cashed out and amounts that will be cashed out upon termination of employment. Beginning of Year Additions Usage / End of Current Long-term Payments Year Portion Portion Accmed Vacation Leave $ 344,179 $ 372,564 S (402,688) $ 314,055 $ 158,850 $ 155,205 Accmed Sick Leave 638,154 138,278 (427,169) 349,263 190,950 158,313 Total $ 982,333 $ 510,842 S (829,857) $ 663,318 . $ 349,800 $ 313,518 7) INVESTMENT IN CAPITAL ASSETS NET OF RELATED DEBT Investment in capital assets net of related debt at June 30, 2012 consisted of the following: Non -depreciable Capital Assets $ 27,478,232 Depreciable Capital Assets 147,566,430 Accumulated Depreciation (54,324,474) Deferred Bond Costs 537,099 Unspent Debt Proceeds 13,811,693 Loans Payable (3,976,340) Bonds Payable (34,145,712) Lease Payable (27,1391 Total $ 96,919,789 8) DEFINED BENEFIT PENSION PLAN (PERS) Plan Description The East Valley Water District contributes to the California Public Employees Retirement System (PERS), a cost- sharing multiple -employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of the PERS annual financial report may be obtained from their executive office: 400 P Street, Sacramento, California 95814. All full-time District employees are eligible to participate in PERS with benefits vesting after five years of service. District employees who retire at age 55 are entitled to an annual retirement benefit, payable monthly for life, in increasing; percentage increments up to 2.7% of their average full-time monthly pay rate for the highest 36 consecutive months for each year of credited service. 30 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued Funding Policy Participants are required to contribute 8% of their annual covered salary. The District contributes 6% of the 8% on behalf of the employees and for their account. The District is also required to make an additional contribution at an actuarially determined rate. The rate for the fiscal year ended June 30, 2012 was 18.664% of annual covered payroll. The contribution requirements of plan members and the District are established and may be amended by PERS. The District's contributions to PERS for the years ending June 30, 2012, 2011 and 2010 were $1,079,976, $1,125,611 and $1,129,524, respectively, and were equal to 100% of the required contributions for each year. 9) COMMITMENTS AND CONTINGENCIES Grant Awards Grant funds received by the District are subject to audit by the grantor agencies. Such audit could lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant. Management of the District believes that such disallowances, if any, would not be significant. Envirogen, Inc. (Formally Basin Water, Inc.) The District entered into a 10 -year agreement for wellhead treatment with Envirogen, Inc. The agreement required Envirogen to install and maintain treatment facilities at a District well that is contaminated by nitrates (Cull Well 2, also known as Cull Well 132). The District and Envirogen, Inc. entered into a subsequent agreement to demobilize the treatment facilities at the Cull Well 132 and install them at Well 107. The agreement for the operation of the wellhead treatment was then amended to be appropriate for the needs at Well 107. The term of the amended agreement is for 10 years. The District will pay $453 per acre foot (Per Acre Foot Treatment Fee) of treated/blended water. The Acre Foot Treatment Fee is based upon the District's representation that it will pump, and deliver for processing and treatment, 1500 acre-feet of water per year (Base Quantity). If the District pumps less than the Base Quantity, the District is obligated to pay Envirogen $158 per acre-foot (Minimum Treatment Fee) for the difference between the Base Quantity and the amount of water actually delivered for treatment. The District entered into another agreement with Envirogen, Inc. for nitrate removal from Well 27 (Agreement #2). Agreement #2 was signed February 2005 but the term did not begin until all required permits were obtained. The term began in June 2007 and continued for one year with an option to extend for an additional year. Agreement #2 expired on June 19, 2008 and the District agreed to month-to-month terms until a new agreement was signed. The original contract price of $195 per acre foot as indexed by the consumer price index was $210 as of June 30, 2007. The month-to-month agreement set the fee at $520 per acre foot. In October 2008, the District and Envirogen, Inc. signed the Second Amendment to the East Valley Water District Water Services Agreement (WSA) #107. This amendment consolidated the agreements for Wells 107 and 27 into a single agreement, with an effective date retroactive to June 17, 2008 and continuing through June 16, 2018. 31 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 9) COMMITMENTS AND CONTINGENCIES - Continued Envirogen, Inc. (Formally Basin Water, Inc.) - Continued The consolidated agreement established a Base Quantity to be produced by Wells 27 and 107 combined, and set the cost per acre foot to be charged for water produced up to the Base Quantity (Base Fee). The consolidated agreement also established an Additional Treatment Fee for quantities of water produced in excess of the Base Quantity, and a Minimum. Treatment Fee, to be charged for any deficit between actual number of acre feet produced and the Base Quantity. Each January, all of these volumetric fees are subject to adjustment by the previous year's increase in CPI. At June 30, 2012, the following terms were in effect: • Base Quantity (Wells 107 and 27 combined) - 2,000 acre feet • Base Fee - $469.99 per acre foot • Additional Treatment Fee - $378.16 per acre foot • Minimum Treatment Fee - $163.60 per acre foot For the year ended June 30, 2012, contracted water treatment costs included Base Fees of $890,414 and Minimum Treatment Fees of $172,250. Operating Lease The District entered into a lease agreement for office space commencing February 1, 2004. On March 9, 2010, the parties to the lease executed the fifth amendment to the agreement effective June 16, 2010. The amendment added and removed office space, increased rent to $14,102 per month, and extended the lease term through April 30, 2014. A portion of the office space removed from the lease was rented on a monthly basis at $2,712 per month until tenant improvements were completed. The amendment includes three future lease options, each to extend the agreement for an additional three years. Total rent expense under this operating lease for the year ended June 30, 2012 was $169,224. Future minimum rental payments required for the operating lease are as follows: Year Ending June 30, Payments 2013 2014 $ 169,224 141,020 Total Future Minimum Rental Payments $ 310,244 10) RISKMANAGEMENT T'he District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omission; injuries to employees; and natural disasters. The District participates in a joint powers agreement (JPA) with the Special District Risk Management Authority (Authority). The Authority is a risk -pooling self-insurance authority created under the provisions of California Government Code Section 6500 et. sec. The Authority is governed by a Board consisting of a representative from each member agency. The Board controls the operations of the Authority including selection of management and approval of operation budgets. The relationship between the District and the Authority is such that the Authority is not a component unit of the District for financial reporting purposes. Settled claims have been immaterial and claims liabilities have not been reported in these financial statements as of June 30, 2012, or in the previous fiscal year. 32 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 10) RISK MANAGEMENT -Continued The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. At June 30, 2012, the District's participation in the self-insurance programs of the Authority was as follows: Limits Deductible Personal Injury and Property Damage $10,000,000 per occurrence / aggregate where $500 (property damage Liability Coverage - General applicable only) Personal Injury and Property Damage $10,000,000 per accident $1,000 Liability Coverage - Auto Public Officials and Employees Errors $10,000,000 per wrongful act / annual member none and Omissions Liability aggregate Employment Practices Liability $10,000,000 per wrongful employment practice/ none up to $10,000, 50% aggregate limits per member included co-insurance from with Public Officials and Employee $10,000 to $50,000, none Errors and Omissions Coverage for amounts greater than $50,000 Employee Benefits Liability $10,000,000 per wrongful act / annual member none aggregate Employee Dishonesty Coverage $400,000 per loss $25,000 Public Officials Personal Liability $500,000 per occurrence / annual aggregate per $500 Board Member Automobile Physical Damage ACV Limits Replacement cost (stated value adjusted $250/$500 or for depreciation on selected vehicles) $500/$1,000 comprehensive / collision (as elected per vehicle) Uninsured Motorist Bodily Injury $750,000 per accident none Coverage Property Coverage $1,000,000,000 replacement cost for scheduled property $2,000 in general, varies if replaced (if not replaced within two for other certain events years, actual cash value basis) Boiler and Machinery $100,000,000 replacement cost $1,000 33 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description The District contributes to the retiree health coverage of eligible retirees and eligible surviving spouses. As of June 7, 2011, the District is part of the Public Agency portion of the California Employers' Retiree Benefit Trust Fund (CERBT), an agent multiple -employer plan administered by California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as welt as other requirements is established by State statute within the Public Employees' Retirement Law. The District selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through District resolution. CalPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued in aggregate and includes the sunt of all CalPERS plans. Copies of the CalPERS CAFR may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814. Funding Policy The contribution requirements of plan members and the District are established and may be: amended by the Board of Directors. At retirement, the District provides the minimum employer contribution under the CalPERS Health Program for eligible retirees and surviving spouses in receipt of a pension benefit from CalPERS. An employee is eligible for this employer contribution provided they are vested in their CaIPERS pension benefit and commence payment of their pension benefit within 120 days of retirement with the District. Vesting requires at least five years of service. The surviving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon death of the retiree. Employees retiring with at least 20 years of District service will receive an additional District contribution through attainment of Medicare eligibility age. The additional contribution is based on the negotiated dollar amount at retirement (currently $550 per month). The surviving spouse of an eligible retiree is eligible for the District's contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age. Directors who were first elected to office on or after July 1, 1994 shall be eligible to continue to receive health benefits upon termination on a self -pay basis. There are two Directors (in office prior to July 1, 1994) who are eligible for District -paid health care benefits and any covered spouse or dependents. The benefits are payable for the lifetime and the lifetime of any covered surviving spouse. Prior to .lune 7, 2011, the District contributed 100% of [he cost of current year premiums for eligible retired plan members and their dependents. The District, as part of the CERBT, is required to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, Hpaid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a closed 27 year period. The current ARC rate is 2.1% of the annual covered payroll. 34 East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - Continued Annual OPEB Cost The District's annual OPEB cost for the current year and the related information for the plan are as follows: Annual Required Contribution $ 91,699 Interest on Net OPEB Obligation 19,834 Adjustments to Annual Required Contribution (23,011) Annual Annual OPEB Cost (Expense) 88,522 Contributions Made (147,036) Increase (Decrease) in Net OPEB Obligation (58,514) Net OPEB Obligation - Beginning of Year 260,637 6/30/12 Net OPEB Obligation - End of Year $ 202,123 For 2012, 2011, and 2010, the District's annual OPEB costs (expenses) were $88,522, $101,313 and $167,792, respectively, and were equal to the ARC. The District's annual OPEB cost has been recognized as a part of the administrative and general expenses in the accompanying Statement of Revenue, Expenses and Changes in Net Assets. The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the 2012 and the two preceding years were as follows: Funded Status and Funding Progress The funded status of the plan as of June 30, 2011, was as follows: Actuarial Accrued Liability (AAL) $ 778,688 Percentage $ Fiscal Annual Actual of OPEB Net OPEB Year Ended OPEB Cost Contribution Contributed Obligation 6/30/12 $ 88,522 $ 147,036 166% $ 202,123 6/30/11 $ 101,313 $ 101,313 100% $ 260,637 6/30/10 $ 167,792 $ 25,068 9% $ 260,637 Funded Status and Funding Progress The funded status of the plan as of June 30, 2011, was as follows: Actuarial Accrued Liability (AAL) $ 778,688 Actuarial Value of Plan Assets $ 74,958 Unfunded Actuarial Accrued Liability (UAAL) $ 703,730 Funded Ratio (Actuarial Value of Plan Assets/AAL) 10% Covered Payroll (Active Plan Members) $ 4,914,556 UAAL as a Percentage of Covered Payroll 14.32% W11 East Valley Witter District Notes to Financial Statements Year Ended June 30, 2012 I I) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - Continued Funded Status and Funding Progress - Continued Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The following is a summary of the actuarial assumptions and methods: Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Actuarial Assumptions: Investment Rate of Return Projected Salary Increase 2011 - 2015 Health Care Trend Rate 2016 - 2018 Health Care Trend Rate 2019 - Thereafter Health Care Trend Rate 12) INTERNAL BALANCES June 30, 2011 Entry Age Normal Level Percent of Payroll 2 Years Closed Period 7.61% 3.25% 7.00% 5.16% 5.00% In previous years, Water System capital improvement costs have exceeded water revenue and other financing sources resulting in borrowing from the Sewer Fund in the approximate amount of $7 million. Pursuant to Resolution 2010.20 adopted by the Board of Directors on September 14, 2010, Sewer System revenues borrowed from the Sewer Department will be repaid by the Water Department in scheduled annual installments, with installments of $200,000 beginning in fiscal year 2014, increasing to $250,000 in fiscal year 2020 and $300,000 in fiscal year 2030. 0] East Valley Water District Notes to Financial Statements Year Ended June 30, 2012 13) SPECIAL ITEM - ABANDONED INVESTIGATION In 2010-11, the District expensed accumulated costs related to possible litigation over a federal dam on the Santa Ana River (Seven Oaks Dam) that can trap, and render unusable, Santa Ana River water that supplies the District's surface water treatment plant. Bypass canals around the dam have kept the District's plant operating, but a long term solution to keep the dam from contaminating river water is still pending. District costs related to the dam in the future will be recognized as an expense in the year in which they are incurred. 14) PRIOR PERIOD ADJUSTMENT The prior period adjustment of $2,861,951 reported in the Statement of Revenue, Expenses, and Changes in Net Assets for the year ended June 30, 2012, includes an increase to net assets of $1,000,603 for unbilled water and sewer receivables as of June 30, 2011, with the remainder representing an increase in net assets due to the inclusion of the North Fork Water Company as a blended component unit in the 2011-12 financial statements. 37 REQUIRED SUPPLEMENTARY INFORMATION East Valley Water District Schedule of Funding Progress for Retirees Health Coverage June 30, 2012 *GASB 45 was implemented in fiscal year ended June 30, 2009. There were no previous actuarial valuations. fM Actuarial Accrued UAAL as a Actuarial Actuarial Liability Unfunded Percentage of Valuation Value of (AAL) Entry AAL Funded Covered Covered Date Assets Age (UAAL) Ratio Payroll Payroll (A) (B) (B -A) (A/B) (C) [(B-A)/Cl 06/30/11 $ 74.958 $ 778.688 $ 703.730 10% $ 4.914.556 14 32% 07/01/10 $ $ 727.256 $ 727.256 0% S 4.507.000 16% 07/01/08 $ 1.290.086 $ 1.290.086 0% $ 4.330.000 30% *GASB 45 was implemented in fiscal year ended June 30, 2009. There were no previous actuarial valuations. fM SUPPLEMENTARY INFORMATION East Valley Water District History and Organization Year Ended June 30, 2012 Formation of the District The Board of Supervisors of San Bernardino County approved a petition in writing for the formation of the East Valley Water District (formerly East San Bernardino County Water District) under Division 12 of the Water Code of the State of California and ordered an election held January 12, 1954. The formation of the District was voted by the electors. The Board of Supervisors of San Bernardino County, by action on January 18, 1954, approved the formation of the District. Incorporation of the "East Valley Water District" was approved by the State of California on February I, 1954. Formation of the Public Facilities Corporation The East Valley Public Facilities Corporation was incorporated October 1986, pursuant to the nonprofit public benefit corporation law of the State of California to provide financial assistance to the District by acquiring and constructing various public improvements, and by acquiring land and related facilities for the use, benefit and enjoyment of the public. Nature of Business The District has been engaged in the furnishing of water service and sewage transmission services to its customers since inception. Location The District has temporarily relocated its office to 3654 East Highland Avenue. The office is situated within the District's boundaries which encompass an area of approximately 25 square miles within the County of San Bernardino, California. Directors Water District Matt Le Vesque President James Morales, Jr. Vice President Kip E. Sturgeon Director George E. "Skip" Wilson Director Ben C. Coleman Director East Vallev Water District Financine Authori Matt Le Vesque President James Morales, Jr. Vice President Brian W. Tompkins Finance Director John J. Mum Secretary Management John J. Mora General Manager/Secretary Brian W. Tompkins Chief Financial Officer/Treasurer Professional Consultants Public Facilities Connotation Matt Le Vesque President James Morales, Jr. I" Vice President Kip E. Sturgeon 2nd Vice President John J. Mura Secretary Brian W. Tompkins Treasurer General Counsel for the District is the firm of Branick, McElhaney & Beckett. 39 This page intentionally left blank East Valley Water District Combining Schedule of Net Assets June 30, 2012 Water Sewer Eliminations Totals ASSETS Current Assets: Cash and Cash Equivalents $ 2,334,947 $ 2,359,615 $ $ 4,694,562 Investments 1,056,094 2,566,098 3,622,192 Accounts Receivable, Net 2,975,670 178,860 3,154,530 Interest Receivable 18,642 3,404 22,046 Other Receivables 5,739 5,739 Due from Other Governments 1,782,079 1,782,079 Inventory 935,892 935,892 Prepaid Expenses 161,314 161,314 Total Current Assets 9,270,377 5,107,977 - 14,378,354 Non -Current Assets: Restricted Cash and Cash Equivalents 15,832,791 338,855 16,171,646 Assessments Receivable 519,709 519,709 Deferred Charges 520,943 16,156 537,099 Due from Other Fund 7,000,000 7,000,000 - Capital Assets not being Depreciated 23,556,270 3,921,962 27,478,232 Capital Assets, net (Note 4) 79,225,262 14,016,694 93,241,956 Total Non -Current Assets 119,654,975 25,293,667 7,000,000 137,948,642 Total Assets 128,925,352 30,401,644 7,000,000 152,326,996 LIABILITIES Current Liabilities: Accounts Payable and Accrued Expenses 988,683 1,219,897 2,208,580 Accrued Payroll and Benefits 158,153 53,075 211,228 Customer Service Deposits 1,703,189 1,703,189 Construction Advances and Retentions 93,900 110,292 204,192 Accrued Interest Payable 354,715 8,975 363,690 Current Portion of Compensated Absences 268,697 81,103 349,800 Current Portion of Long -Term Debt 1,238,186 90,458 1,328,644 Total Current Liabilities 4,805,523 1,563,800 - 6,369,323 Non -Current Liabilities: Due to Other Fund 7,000,000 7,000,000 - Compensated Absences, less current portion (Note 6) 233,672 79,846 313,518 Other Post Employment Benefits 202,123 202,123 Long-term Debt, less current portion 35,984,723 835,824 36,820,547 Total Non -Current Liabilities 43,420,518 915.670 7,000,000 37,336,188 Total Liabilities 48,226,041 2,479,470 7,000,000 43,705,511 NET ASSETS Invested in Capital Assets, Net of Related Debt 79,692,224 17,227,565 96,919,789 Restricted 265,512 29,528 295,040 Restricted-Nonspendable 121,210 121,210 Unrestricted 620,365 10,665,081 11,285,446 Total Net Assets $ 80,699,311 $ 27,922,174 $ - $108,621,485 40 East Valley Water District Combining Schedule of Revenues, Expenses and Changes in Net Assets Year Ended June 30, 2012 OPERATING EXPENSES Source of Supply: Supervision and Labor Water _ Sewer Eliminations Totals OPERATING REVENUES Maintenance 27,992 Water Sales $ 13,426,700 $ $ $ 13,426,700 Water Meter Charges 4,175,522 199,931 4,175,522 Sewer Treatment Charges 180,053 6,470,322 6,470,322 Sewer System (:barges Water Testing 4,114,621 4,114.,621 Other Charges 414,452 50,400 4641,852 Total Operating Revenues 18,016,674 10,635,343 28,652,017 OPERATING EXPENSES Source of Supply: Supervision and Labor 155,124 155,124 C1P Labor Credit Maintenance 27,992 - Materials and Supplies 359 359 Purchased Water 199,931 199,931 Groundwater Replenishment 180,053 180,053 North Fork Assessments 2,700,867 - - Water Testing 123,014 123,014 Water Supply Studies 100,209 100,209 Total Source of Supply 658,481 - 658,481 Pumping Supervision and Labor 570,465 570,465 CIF Labor Credit Materials and Supplies 27,992 27,992 Facilities Maintenance 130,951 130,951 Fuel and Power 1,814,716 1,814,716 Treatment Chemicals 156,743 156,743 Total Pumping 2,700,867 - 2,700,867 Water Treatment: Supervision and Labor 100,209 100,209 CIF Labor Credit Materials and Supplies 110,700 1](1,700 Facilities Maintenance 8,549 8,549 Fuer! and Power 97,628 97,628 Contact Treatment 1,062,654 1,062,664 Treatment Chemicals 32,329 32,329 Total Water Treatment 1,412,079 - - 1,412,079 Wastewater Treatment, Contact Treatment 6,800,369 6,800,369 Transmission and Distribution: Supervision and Labor 818,213 - - 818,213 CIP Labor Credit Materials and Supplies 332,314 332,314 Facilities Maintenance 2985954 298,964 Total "Transmission and Distribution 1,449,441 - - 1,449',491 (Continued) 41 East Valley Water District Combining Schedule of Revenues, Expenses and Changes in Net Assets - Continued Year Ended June 30, 2012 Water Sewer Eliminations Totals OPERATING EXPENSES - Continued Wastewater Collection: Supervision and Labor $ $ 265,317 $ 265,317 CIP Labor Credit (879) (879) Materials and Supplies 28,246 28,246 Facilities Maintenance 18,150 18,150 Total Customer Accounts - 310,834 - 310,834 Customer Accounts: Supervision and Labor 338,885 280,472 619,357 CIP Labor Credit Postage 54,635 54,635 109,270 Contract Services - Billing 24,852 24,851 49,703 Contract Services - Payment Processing 62,071 62,071 124,142 Credit Checks 15,172 15,172 30,344 Cash Shortages 4,756 1,473 6,229 Materials and Supplies 679 475 1,154 Total Customer Accounts 501,050 439,149 940,199 General and Administrative Supervision and Labor 1,162,074 632,796 1,794,870 Taxes and Benefits 1,681,353 504,489 2,185,842 CIP Labor Credit Director's Fees and Expenses 58,095 57,878 115,973 Telephone and Utilities 84,810 37,203 122,013 Dues and Subscriptions 36,656 7,577 44,233 Office Supplies and Expenses 65,062 44,267 109,329 Postage 15,419 10,165 25,584 Equipment Maintenance and Supplies 64,367 44,157 108,524 General Plant Maintenance 176,098 14,123 190,221 Vehicle Maintenance and Fuel 247,063 52,843 299,906 Facilities Lease 109,974 72,933 182,907 Contractual Services 686,285 307,750 994,035 General Insurance 144,153 85,568 229,721 Professional Development 24,146 11,943 36,089 Meals, Lodging and Travel - Employee Programs 19,225 8,112 27,337 Regulatory Fees and Compliance 27,121 13,163 40,284 Public Education and Outreach 11,409 7,605 19,014 Election Fees 50,825 33,884 84,709 Safety Equipment and Emergency Planning 38,796 4,026 42,822 Total Administrative and General 4,702,931 1,950,482 - 6,653,413 OPERATING EXPENSES BEFORE DEPRECIATION 11,424,899 9,500,834 - 20,925,733 Depreciation 3,076,329 662,767 3,739,096 Total Operating Expenses 14,501,228 10,163,601 - 24,664,829 Operating Income (Loss) 3,515,446 471,742 - 3,987,188 (Continued) 42 East Valley Water District Combining Schedule of Revenues, Expenses and Changes in Net Assets - Continued Year Ended June 30, 2012 NON-OPERATING REVENUES Investment Income Cooperative Agreements Grants Claims and Settlements 01 bur Income Total Non -Operating Revenues :VON -OPERATING EXPENSES Interest Expense Amortizatior Gain/Loss on Disposal Total Non -Operating Expenses Income Before Contributions, Transfers and Special Items CONTRIBUTIONS AND TRANSFERS Utility Plant Dedicated Caracitv Charges Capital Grant -Plant 134 Total Contributions and Transfers SPECIAL ITEM Abandoned Investigations Change in Net Assets Prior Period Adjustment Total Net Assets, Beginning Total Net Assets, Ending Water Sewer Eliminations Totals $ 61,802 $ 48,542 $ 26,250 $ 84,094 102,238 102,288 880 880 33,726 200 33,926 198,696 48,742 26,250 221,188 1,449,973 27,793 26,250 1,451,516 33,326 1,958 35,284 1,483,299 29,751 26,250 1,486,800 2,230,843 490,733 476,937 174,838 17,163 2,893,874 3,545,659 17,163 2,721,576 476,937 192,011 2,893,874 3,562,822 5,776,502 507,896 - 6,284,398 2,704,978 156,973 2,861,951 72,217,831 27,257,305 99,475,136 $ 80,699,311 $ 27,922,174 $ - $ 108,621,485 43 East Valley Water District Combining Schedule of Cash Flows Year Ended June 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers Cash Paid for Employee Services Cash Payments to Suppliers Other Income Received Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Grant Funds Received Capital Contributions Proceeds from Issuance of Capital Debt Principal Paid on Capital Debt Interest Paid on Capital Debt Acquisition and Construction of Capital Assets Loans to Eastwood Farms Property Owners Net Cash Provided (Used) by Capital and Related Financing CASH FLOWS FROM INVESTING ACTIVITIES Interest Received from Investments Acquisition of Investments in Debt Securities Proceeds from Sales of Investments in Debt Securities Loan Collections from AVAD Property Owners Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year Cash and Cash Equivalents - End of Year RECONCILIATION TO STATEMENT OF NET ASSETS Cash and Cash Equivalents Restricted Cash and Cash Equivalents Water Sewer $ 17,498,082 $10,625,257 (5,145,147) (1,797,594) (8,121,077) (6,540,864) 286,570 200 4,518,428 2,286,999 2,139,521 174,848 17,163 3,460,760 (997,353) (75,000) (1,430,989) (38,626) $ $28,123,339 (6,942,741) (14,661,941) 286,770 6,805,427 2,139,521 192,011 3,460,760 (1,072,353) 26,250 (1,443,365) (7,521,911) (352,554) (7,874,465) (37,559) (37,559) (4,212,683) (449,017) 26,250 (4,635,450) 71,499 70,483 (26,250) 115,732 (1,239,707) (2,531,290) (3,770,997) 1,075,931 2,721,283 3,797,214 10,070 10,070 (82,207) 260,476 (26,250) 152,019 223,538 2,098,458 - 2,321,996 17,944,200 600,012 - 18,544,212 $18,167,738 $ 2,698,470 $ - $20,866,208 $ 2,334,947 $ 2,359,615 $ $ 4,694,562 15,832,791 338,855 16,171,646 $18,167,738 $ 2,698,470 $ - $20,866,208 44 (Continued) East Valley Water District Combining Schedule of Cash Flows - Continued Year Ended June 30, 2012 Reconciliation of Operating Income (Loss) to Net Assets Provided by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation Miscellaneous Income Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (Increase) Decrease in Other Receivables (increase) Decrease in Inventory (Increase) Decrease in Prepaids Increase (Decrease) in Trade Accounts Payable Increase (Decrease) in Accrued Salaries and Benefits Increase (Decrease) in Compensated Absences Increase (Decrease) in Customer Deposits Increase (Decrease) in Developer Deposits 'Dotal Cash Provided (Used) by Operating Activities Noncash Investing, Capital and Noneapital Financing Activities Capital Assets Obtained through Debt Financing Capital Assets Contributed by Developers W ater Sewer Eliminations Totals $ 3,515,446 $ 471,742 $ $ 3,987,188 3,076,329 662,767 3,739,096 136,894 200 137,094 (474,353) (21,887) (496,240) 149,676 149,676 1,239 1,239 156,526 156,526 (1,680,266) 1,219,897 (460,369) (67,753) 10,423 (57,330) (7.51,071) (67,944) (319,015) 23,215 23,215 67,454 11,801 _5,653 $ 4,518,428 $ 2,286,999 $ - $ 6,805,427 $ 390,482 $ 476,937 45 East Valley Water District Principal and Interest Repayment Schedule Refunding Revenue Bonds - Series 2010 Year Ended June 30, 2012 Due Date Principal Interest Rate % Interest Total Payments 10/01/12 $ 1,175,000 2.00 $ 714,431 $ 1,889,431 04/01/13 - 4.00 702,681 702,681 10/01/13 1,205,000 4.00 702,681 1,907,681 04/01/14 - 4.00 678,581 678,581 10/01/14 1,265,000 5.00 678,581 1,943,581 04/01/15 - 5.00 653,281 653,281 10/01/15 1,315,000 5.00 653,281 1,968,281 04/01/16 - 4.00 620,406 620,406 10/01/16 1,380,000 4.00 620,406 2,000,406 04/01/17 - 4.00 592,806 592,806 10/01/17 1,435,000 4.00 592,806 2,027,806 04/01/18 - 4.00 556,931 556,931 10/01/18 1,500,000 5.00 556,931 2,056,931 04/01/19 - 5.00 519,431 519,431 10/01/19 1,580,000 5.00 519,431 2,099,431 04/01/20 - 5.00 479,931 479,931 10/01/20 1,650,000 4.00 479,931 2,129,931 04/01/21 - 4.00 446,931 446,931 10/01/21 1,030,000 4.00 446,931 1,476,931 04/01/22 - 4.00 426,331 426,331 10/01/22 1,075,000 4.00 426,331 1,501,331 04/01/23 - 4.00 404,831 404,831 10/01/23 1,120,000 4.00 404,831 1,524,831 04/01/24 - 4.50 382,431 382,431 10/01/24 1,155,000 4.50 382,431 1,537,431 04/01/25 - 4.00 356,444 356,444 10/01/25 700,000 4.00 356,444 1,056,444 04/01/26 - 4.00 342,444 342,444 10/01/26 730,000 4.00 342,444 1,072,444 04/01/27 - 4.00 327,844 327,844 10/01/27 760,000 4.00 327,844 1,087,844 04/01/28 - 4.00 312,644 312,644 10/01/28 790,000 4.00 312,644 1,102,644 04/01/29 - 4.00 296,844 296,844 10/01/29 820,000 4.00 296,844 1,116,844 04/01/30 - 4.00 280,444 280,444 10/01/30 855,000 4.00 280,444 1,135,444 04/01/31 - 4.25 263,344 263,344 10/01/31 885,000 4.25 263,344 1,148,344 04/01/32 - 4.25 244,538 244,538 10/01/32 925,000 4.25 244,538 1,169,538 04/01/33 - 4.25 224,881 224,881 10/01/33 965,000 4.25 224,881 1,189,881 46 East Valley Water District Principal and Interest Repayment Schedule Refunding Revenue Bonds - Series 2010 - Continued Year Ended June 30, 2012 Due Date Principal 04/01/34 $ - 10/01/34 1,005,000 04/01/35 - 1010l/35 1,055,000 04/01/36 - 10/01/36 1,105,000 04/01/37 - 10/01/37 1,165,000 04/01/38 - 10/01/38 1,220,000 04/01/39 - 10/01/39 1,280,000 04/01/40 - 10/01/40 1,345,000 Totals $ 32,490,000 Interest Rate 'Yo Interest 47 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 $ 204,375 204,375 179,250 179,250 152,875 152,875 125,250 125,250 96,125 96,125 65,625 65,625 33,626 33,626 $ 20,656,681 Total Payments $ 204,375 1,209,375 179,250 1,234,250 152,875 1,257,875 125,250 1,290,250 96,125 1,316,125 65,625 1,345,625 33,626 1,378,626 $ 53,146,681 East Valley Water District Principal and Interest Repayment Schedule Department of Water Resources Construction Loan - Contract 0OC412 Year Ended June 30, 2012 Interest Total Due Date Principal Rate % Interest Payments 01/01/13 $ 3,381 0.000 $ - $ 3,381 07/01/13 3,381 0.000 - 3,381 01/01/14 3,381 0.000 - 3,381 07/01/14 3,381 0.000 - 3,381 01/01/15 3,381 0.000 - 3,381 07/01/15 3,381 0.000 - 3,381 01/01/16 3,381 0.000 - 3,381 07/01/16 3,381 0.000 - 3,381 01/01/17 3,381 0.000 - 3,381 07/01/17 3,381 0.000 - 3,381 01/01/18 3,381 0.000 - 3,381 07/01/18 3,381 0.000 - 3,381 01/01/19 3,381 0.000 - 3,381 07/01/19 3,381 0.000 - 3,381 01/01/20 3,381 0.000 - 3,381 07/01/20 3,381 0.000 - 3,381 01/01/21 3,381 0.000 - 3,381 07/01/21 3,381 0.000 - 3,381 01/01/22 3,381 0.000 - 3,381 07/01/22 3,381 0.000 - 3,381 01/01/23 3,381 0.000 - 3,381 07/01/23 3,381 0.000 - 3,381 01/01/24 3,381 0.000 - 3,381 07/01/24 3,381 0.000 - 3,381 01/01/25 3,381 0.000 - 3,381 07/01/25 3,381 0.000 - 3,381 01/01/26 3,381 0.000 - 3,381 07/01/26 3,381 0.000 - 3,381 01/01/27 3,381 0.000 - 3,381 07/01/27 3,381 0.000 - 3,381 01/01/28 3,381 0.000 - 3,381 07/01/28 3,381 0.000 - 3,381 01/01/29 3,381 0.000 - 3,381 07/01/29 3,381 0.000 - 3,381 01/01/30 3,381 0.000 - 3,381 07/01/30 3,381 0.000 - 3,381 01/01/31 3,382 0.000 - 3,382 Totals $ 125,098 $ - $ 125,098 2H East Valley Waiter District Principal and Interest Prepayment Schedule Department of Water Resources Construction Design Loan - Contract IOPX102 Year Ended June 30, 2012 Interest Total Due Date Principal Rate 9No Interest Payments 01/01/13 $ 10,000 0.000 $ - $ 10,000 07/01/13 10,000 0.000 - 10,000 01/01/14 10,000 0.000 - 10,000 07/01/14 10,000 0.000 - 10,000 01/01/15 10,000 0.000 - 10,000 07/01/15 10,000 0.000 - 10,000 01/01/16 10,000 0.000 - 10,000 07/01/16 10,000 0.000 - 10,000 01/01/17 10,000 0.000 - 10,000 07/01/17 10,000 0.000 - 10,000 Totals $ 100,000 $ - $ 100,000 49 East Valley Water District Principal and Interest Repayment Schedule Department of Water Resources Construction Loan - Contract I ICX101 Year Ended June 30, 2012 50 Interest Total Due Date Principal Rate % Interest Payments 01/01/13 $ 6,508 0.000 $ - $ 6,508 07/01/13 6,508 0.000 - 6,508 01/01/14 6,508 0.000 - 6,508 07/01/14 6,508 0.000 - 6,508 01/01/15 6,508 0.000 - 6,508 07/01/15 6,508 0.000 - 6,508 01/01/16 6,508 0.000 - 6,508 07/01/16 6,508 0.000 - 6,508 01/01/17 6,508 0.000 - 6,508 07/01/17 6,508 0.000 - 6,508 01/01/18 6,508 0.000 - 6,508 07/01/18 6,508 0.000 - 6,508 01/01/19 6,508 0.000 - 6,508 07/01/19 6,508 0.000 - 6,508 01/01/20 6,508 0.000 - 6,508 07/01/20 6,508 0.000 - 6,508 01/01/21 6,508 0.000 - 6,508 07/01/21 6,508 0.000 - 6,508 01/01/22 6,508 0.000 - 6,508 07/01/22 6,508 0.000 - 6,508 01/01/23 6,508 0.000 - 6,508 07/01/23 6,508 0.000 - 6,508 01/01/24 6,508 0.000 - 6,508 07/01/24 6,508 0.000 - 6,508 01/01/25 6,508 0.000 - 6,508 07/01/25 6,508 0.000 - 6,508 01/01/26 6,508 0.000 - 6,508 07/01/26 6,508 0.000 - 6,508 01/01/27 6,508 0.000 - 6,508 07/01/27 6,508 0.000 - 6,508 01/01/28 6,508 OMO - 6,508 07/01/28 6,508 0.000 - 6,508 01/01/29 6,508 0.000 - 6,508 07/01/29 6,508 0.000 - 6,508 01/01/30 6,508 0.000 - 6,508 07/01/30 6,508 0.000 - 6,508 01/01/31 6,508 0.000 - 6,508 07/01/31 6,508 0.000 - 6,508 01/01/32 6,508 0.000 - 6,508 07/01/32 6,508 0.000 - 6,508 01/01/33 6,508 0.000 - 6,508 07/01/33 6,508 0.000 - 6,508 50 East Valley Water District Principal and Interest Repayment Schedule Department of Water Resources Construction Loan - Contract 11CX101 - Continued Year Ended June 30, 2012 51 Interest Total Due Date Principal Rate 9% Interest Payments 01/01/34 6,508 0.000 - 6,508 07/01/34 6,508 0.000 - 6,508 01/01/35 6,508 0.000 - 6,508 07/01/35 6,508 0.000 - 6,508 01/01/36 6,508 0.000 - 6,508 07/01/36 6,508 0.000 - 6,508 01/01/37 6,508 0.000 - 6,508 07/01/37 6,508 0.000 - 6,508 01/01/38 6,508 0.000 - 6,508 07/01/38 6,508 0.000 - 6,508 01/01/39 6,508 0.000 - 6,508 01/01/39 6,508 0.000 - 6,508 01/01/40 6,508 0.000 - 6,508 07/01/40 6,508 0.000 - 6,508 01/01/40 6,508 0.000 - 6,508 07/01/41 6,508 0.000 6,508 01/01/42 6,509 0.000 6,509 07/01/42 6,509 0.000 - 6,509 Totals $ 390,482 $ $ 390,482 51 STATISTICAL SECTION EAST VALLEY WATER DISTRICT Changes In Net Assets and Net Assets By Components Last Ten Fiscal Years Year ended June 30, Non Operating Revenue (Expenses) Investment Income 2003 2004 2005 2006 Change In Net Assets 145,761 71,039 99,374 51,247 Operating Revenue 16,524,196 17,690,644 19,090,110 20,122,090 Operating Expenses 15,852,146 16,712,039 18,408,257 19,041,634 Operating Income (Loss) 672,050 978,605 681,853 1,080,456 Non Operating Revenue (Expenses) Investment Income 307,484 100,250 242,065 341,237 Other Income 145,761 71,039 99,374 51,247 Interest Expense (607,321) (695,616) (681,134) (620,130) Amortization (37,955) (37,956) (37,956) (37,956) Loss on Disposal (16,050) 234,040 1,907,327 (578,333) (143,611) 1,641,725 (192,031) Capital Contributions 4,079,485 3,205,398 3,241,138 3,032,089 Change in Net Assets 4,559,504 3,605,670 3,779,380 5,754,270 Prior Period Adjustment NetAssets- Beginning 68,270,371 72,829,875 76,435,545 80,214,925 NetAssets- Ending 72,829,875 76,435,545 80,214,925 85,969,195 Net Assets By Component Invested in Capital Assets, Net 61,267,649 64,728,890 69,126,680 76,414,981 Restricted - - - - Unrestricted 11,562,226 11,706,655 11,088,245 9,554,214 72,829,875 76,435,545 80,214,925 85,969,195 52 2007 2008 2009 2010 2011 2012 21,977,829 23,198,698 24,535,251 24,427,059 25,205,990 28,652,017 19,748,804 20,665,623 22,867,601 24,015,104 24,368,478 24,6154,829 2,22.9,02.5 2,533,075 1,667,650 411,955 837,512 3,9137,188 539,720 510,361 235,826 61,192 87,589 134,094 140,474 64,043 138,173 178,515 195,070 137,094 (554,914) (776,466) (1,094,926) (989,019) (1,286,352) (1,451,516) (37,955) (37,956) (37,956) (36,061) (32,851) (35,284) 28,142 (36,983) (110,944) (133,412) (140,301) 115,467 (277,001) (918,785) (1,176,845) (1,265,612) (869,827) 3,530,415 2,806,993 1,737,025 101,233 778,049 3,562,822 5,874,907 5,063,067 2,534,848 (405,597) 438,716 6,284,398 2,861,951 85,969,195 91,844,102 96,907,169 99,442,017 99,036,420 99,475,136 91,844,102 96,907,169 99,442,017 99,036,420 99,475,136 108,621,485 81,696,386 89,593,423 93,342,590 93,380,410 95,251,762 96,93.9,789 - - - - 103,029 41.6,250 10,147,716 7,313,746 6,099,427 5,656,010 4,120,345 11,285,446 91,844,102 96,907,169 99,442,017 99,036,420 99,475,136 108,621,485 53 EAST VALLEY WATER DISTRICT Operating Revenue By Source Last 10 Fiscal Years 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 54 Total Year Ended Operating June 30 ® • Revenue 2003 7,535,751 2,310,455 1,527,697 4,557,819 291,252 16,222,974 2004 8,261,919 2,328,660 1,851,275 4,771,313 295,950 17,509,117 2005 8,514,952 2,339,965 2,145,335 5,278,198 259,702 18,538,152 2006 9,303,974 2,377,376 2,262,028 5,471,880 314,319 19,729,577 2007 10,660,279 2,451,060 2,532,458 5,607,142 301,065 21,552,004 2008 10,680,971 2,763,508 2,943,230 5,561,830 638,446 22,587,985 2009 11,767,683 3,096,902 3,407,900 5,631,258 763,245 24,666,988 2010 11,638,234 3,215,189 3,509,254 5,665,046 399,336 24,427,059 2011 11,625,249 3,695,345 3,708,815 5,761,956 500,831 25,292,196 2012 13,426,700 4,175,522 4,114,621 6,470,322 464,852 28,652,017 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 54 EAST VALLEY WATER DISTRICT Water Operating Expenses Last 10 Fiscal Years Year Ended June 30 Source supply 3i,` � Mfgtw i7pst[JieriF - Total Water Oper Exp - 2003 734,001 3,003,996 279.918 574,447 3,259,383 7,851,745 2004 616,986 2,824,273 344,407 571,027 3,780,111 8,136,804 2005 568,306 2,839,783 405,668 682,225 4,315,842 8,811,824 2006 639,948 2,987,709 381.846 695,088 4,361,458 9,066,049 2007 390,124 3,451,376 626,770 766,082 4,215,687 9,450,039 :008 438,134 3,005,392 709,406 1,255,931 4,662,582 10,071,445 2009 608,742 2,961,727 1,420.962 1,403,076 5,320,152 11,714,659 2010 815,349 2,971,681 1,453,365 1,586,237 5,112,974 11,939,606 2011 853,161 2,853,461 1,080.954 1,514,394 4,923,033 11,225,003 2012 658,481 2,700,867 1,412,079 1,449,491 5,203,981 11,424,899 14,000,000 12,000,000 2,000,00-0 Ez 2003 2004 2005 2006 2,307 55 2008 f 2009 2011 2012 EAST VALLEY WATER DISTRICT Sewer Operating Expenses Last 10 Fiscal Years Year Ended" Total Sewer June 30 Oper Exp 2003 262,900 4,557,909 1,033,230 5,854,039 2004 248,242 4,771,339 1,222,195 6,241,776 2005 312,507 5,288,212 1,436,322 7,037,041 2006 336,171 5,473,390 1,512,221 7,321,782 2007 377,919 5,607,172 1,498,844 7,483,935 2008 333,588 5,561,830 1,707,574 7,602,992 2009 449,296 5,631,258 1,932,193 8,012,747 2010 474,244 5,665,046 2,621,931 8,761,221 2011 447,426 5,995,720 2,857,272 9,300,418 2012 310,834 6,800,369 2,389,631 9,500,834 10,000,000 9,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 56 EAST VALLEY WATER DISTRICT Water Sales and Production Last 10 Fiscal Years Year Ended 2003 19,659 23,465 2004 21,406 24,232 2005 20,362 23,149 2006 21,400 24,079 2007 7.5,015 27,252 2008 21,375 24,144 2009 21,660 23,700 2010 19,803 21,792 2011 18,712 20,605 2012 19,708 20,982 30,000 57 EAST VALLEY WATER DISTRICT REVENUE RATES Year ended lune 30, Sewer Maintenance Charges Residential (1 to 3 units) Flat monthly charge 4.85 5.85 6.40 7.00 7.75 9.75 10.84 10.84 12.93 14.09 Commercial Flat monthly charge - - - - - - - - 3.28 3.58 plus, Charge per HCF 0.24 0.29 0.31 0.34 0.37 0.49 0.55 0.55 0.46 0.50 Residential (1 to 3 units) Flat monthly charge Commercial Flat monthly charge plus, Charge per HCF: Multi -family ( 4 plus units) Retail Restaurants/ Lounges Laundromats Dry Cleaners Schools / Churches Convalescent Homes Hotels Office Bldgs, Motels, Municipal Auto Repair, Service stations Car Wash HCF = hundred cubice feet = 748 gallons Sewer Treatment Charges 13.25 13.25 14.50 14.50 14.50 14.50 15.25 15.25 16.00 18.50 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0.75 0.75 0.83 Water Consumption Rates 0.83 0.87 0.87 0.95 1.25 Charge per HCF 0.88 0.88 0.96 1.01 1.08 1.20 1.35 1.35 1.49 1.62 1.70 1.70 1.84 Monthly Meter Charges 1.84 1.84 1.93 1.93 2.00 Meter Size 0.90 0.90 1.15 1.15 1.15 1.15 1.21 1.21 1.30 5/8" zoo 7.00 7.50 7.50 7.50 8.40 10.45 10.45 11.54 12.58 3/4" 7.00 7.00 7.50 7.50 7.50 8.40 10.45 10.45 11.54 12.58 1" 13.00 13.00 14.00 14.00 14.00 15.70 14.63 14.63 17.56 19.14 11/2" 27.50 27.50 29.50 29.50 29.50 33.00 18.81 18.81 32.49 35.41 2" 39.50 39.50 42.50 42.50 42.50 47.60 30.39 30.39 74.47 81.17 3" 69.50 69.50 74.50 74.50 74.50 83.50 114.94 114.94 137.40 149.77 4" 115.50 115.50 124.00 124.00 124.00 139.00 146.29 146.29 227.30 247.76 6" 225.00 225.00 241.00 241.00 241.00 270.00 219.44 219.44 452.06 492.74 8" 338.00 338.00 362.00 362.00 362.00 405.00 303.04 303.04 721.76 786.72 Sewer Maintenance Charges Residential (1 to 3 units) Flat monthly charge 4.85 5.85 6.40 7.00 7.75 9.75 10.84 10.84 12.93 14.09 Commercial Flat monthly charge - - - - - - - - 3.28 3.58 plus, Charge per HCF 0.24 0.29 0.31 0.34 0.37 0.49 0.55 0.55 0.46 0.50 Residential (1 to 3 units) Flat monthly charge Commercial Flat monthly charge plus, Charge per HCF: Multi -family ( 4 plus units) Retail Restaurants/ Lounges Laundromats Dry Cleaners Schools / Churches Convalescent Homes Hotels Office Bldgs, Motels, Municipal Auto Repair, Service stations Car Wash HCF = hundred cubice feet = 748 gallons Sewer Treatment Charges 13.25 13.25 14.50 14.50 14.50 14.50 15.25 15.25 16.00 18.50 - - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.40 0.75 0.75 0.83 0.83 0.83 0.83 0.87 0.87 0.95 1.25 1.10 1.10 1.70 1.70 1.70 1.70 1.79 1.79 1.90 2.10 1.70 1.70 1.84 1.84 1.84 1.84 1.93 1.93 2.00 2.70 0.90 0.90 1.15 1.15 1.15 1.15 1.21 1.21 1.30 1.50 1.10 1.10 1.70 1.70 1.70 1.70 1.79 1.79 1.90 2.10 0.50 0.50 0.62 0.62 0.62 0.62 0.65 0.65 0.70 1.10 0.80 0.80 0.84 0.84 0.84 0.84 0.88 0.88 0.95 1.50 1.70 1.70 1.84 1.84 1.84 1.84 1.93 1.93 2.00 1.35 0.95 0.95 1.32 1.32 1.32 1.32 1.39 1.39 1.50 2.70 1.20 1.20 1.17 1.17 1.17 1.17 1.23 1.23 1.30 1.30 1.20 1.20 1.17 1.17 1.17 1.17 1.23 1.23 1.30 1.30 58 Year Ended - June 30 2003 17,353 2004 17,753 2005 18,203 2006 18,243 2007 18,454 2008 18,367 2009 18,403 2010 18,562 2011 18,564 2012 18,584 25,000 EAST VALLEY WATER DISTRICT ACTIVE SERVICES BY TYPE Last 10 Fiscal Years 20,000 _ o w wsa enwr oe��i ern• seen anew ......_" :rte. 15,000 10,000 5,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 59 Total ■ Service 538 11.323 235 1,275 20,724 534 1,.327 252 1,289 21,155 537 1,.322 260 1,289 21,611 534 1,.315 267 1,295 21,654 532 1,.316 272 1,295 21,869 516 1,309 289 1,301 21,782 508 1,293 306 1,306 21,816 496 1,277 310 1,324 21,969 502 1,273 310 1,318 21,967 497 1,268 313 1,321 21,983 20,000 _ o w wsa enwr oe��i ern• seen anew ......_" :rte. 15,000 10,000 5,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 59 EAST VALLEY WATER DISTRICT Principal Customers Year Ended June 30, 2012 Customer Patton State Hospital San Bernardino County USD San Manuel Indian Bingo & Casino San Manuel Mission Indians Stubblefield Construction Co. City of San Bernardino Village Lakes HOA East Highland Ranch Valencia LEA Mobile Home Park Safety Investment Total - Top 10 Total - District Water Percentage Consumed (AF) of Total 1,206 6.12% 534 2.71% 363 1.84°% 272 1.38% 209 1.06% 166 0.84% 160 0.81% 132 0.67% 111 0.56% 94 0.48% 3,247 16.47% 19,708 100.00% EAST VALLEY WATER DISTRICT Ratio of Outstanding Debt Last Ten Fiscal Years As a Share of Personal Fiscal Year Outstanding Debt Per Capita Income i 2003 $ 15,415,000 $ 259 1.34% 2004 13,890,000 226 1.13% 2005 22,443,226 359 1.73% 2006 26,764,017 426 1.96% 2007 24,823,814 380 1.67% 2008 23,049,105 373 1.57% 2009 21,183,730 339 1.47% 2010 19,221,480 302 1.35% 2011 33,545,000 518 2.22% 2012 35,950,760 546 2.29% $40,000,000 $35,000,000 $30,000,000 $25,000,000 N $20,000,000 c $15,000,000 $10,000,000 $5,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011. 2012 L-1 EAST VALLEY WATER DISTRICT Debt Service Coverage Ten Years Ended June 30, 2012 Yr Ended June 30 Net Revenue Debt Service Coverage Net Revenue Debt Service Coverage 2003 3,662,232 2,109,345 1.74 N/A 2004 4,245,568 2,200,209 1.93 N/A 2005 3,928,685 2,415,150 1.63 N/A 2006 4,003,111 2,670,512 1.50 N/A 2007 5,323,247 3,146,640 1.69 N/A 2008 5,957,250 2,894,801 2.06 N/A 2009 4,472,820 2,900,829 1.54 N/A 2010 3,570,437 2,807,749 1.27 N/A 2011 5,781,923 2,176,144 2.66 N/A 2012 6,861,951 2,028,319 3.38 1,174,164 111,650 10.52 62 Yr Ended June 30 District Population EAST VALLEY WATER DISTRICT Demographics and Economics Last Ten Years Unemployment Rate 2003 59,433 6.2% 2004 61,389 6.1% 2005 62,496 5.4% 2006 62,833 4.9% 2007 65,378 5.0% 2008 61,855 6.3% 2009 62,455 10.3% 2010 63,567 14.0% 2011. 64,698 13.894, 2012 65,850 12.6% Sources: Bureau of Labor Statistics US Census Bureau 63 Personal Income Per Capita 19,T45 19,945 20,723 21,710 22,732 23,801 23,131 22,479 23,356 (estimated) 23,870 (estimated) EAST VALLEY WATER DISTRICT Full Time Employees Ten Years Ended June 30, 2012 Year Ended District Engineering & June 30 Administration Maintenance Operations Total 2003 18 36 10 64 2004 18 36 10 64 2005 19 36 10 65 2006 19 37 10 66 2007 19 37 10 66 2008 20 37 10 67 2009 20 38 10 68 2010 20 38 10 68 2011 21 35 10 66 2012 21 31 11 63 80 70 M 50 '1 Operations 40 M Engineering & Maintenance A District Administration 30 20 10 n 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 64