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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 05/12/2022BOARD OF DIRECTORS MAY 12, 2022 East Valley Water District was formed in 1954 and provides water and wastewater services to 103,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. GOVERNING BOARD EXECUTIVE MANAGEMENT Phillip R. Goodrich Chairman of the Board John Mura General Manager/CEO James Morales, Jr. Vice Chairman Brian Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations Ronald L. Coats Governing Board Member Kelly Malloy Director of Strategic Services David E. Smith Governing Board Member Kerrie Bryan Director of Administrative Services Justine Hendricksen District Clerk Patrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager Board of Directors Special Meeting May 12, 2022 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related 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 Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of March 23, 2022 Regular Board Meeting Minutes b.Approval of Directors' Fees and Expenses for April 2022 2.INFORMATIONAL ITEMS a.Review FY 2022­23 Revenue Projections 3.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSMAY 12, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board John MuraGeneral Manager/CEOJames Morales, Jr.Vice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager Board of Directors Special Meeting May 12, 2022 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related 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 Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of March 23, 2022 Regular Board Meeting Minutes b.Approval of Directors' Fees and Expenses for April 2022 2.INFORMATIONAL ITEMS a.Review FY 2022­23 Revenue Projections 3.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSMAY 12, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board John MuraGeneral Manager/CEOJames Morales, Jr.Vice Chairman Brian TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerBoard of Directors Special MeetingMay 12, 2022 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346PLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of March 23, 2022 Regular Board Meeting Minutes b.Approval of Directors' Fees and Expenses for April 2022 2.INFORMATIONAL ITEMS a.Review FY 2022­23 Revenue Projections 3.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #1a May 12, 20221 Meeting Date: May 12, 2022 Agenda Item #1a Consent Item Special Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of March 23, 2022 Regular Board Meeting Minutes RECOMMENDATION Staff recommends that the Board of Directors approve the March 23, 2011 regular Board meeting minutes as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft March 23, 2022 regular board meeting minutes Regular Board Meeting Meeting Date: March 23, 2022 CALL TO ORDER The Chairman of the Board called the meeting to order at 4:30 p.m. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT Directors: None STAFF John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kelly Malloy, Director of Strategic Services; Pat Milroy, Operations Manager; Rocky Welborn, Water Reclamation Manager; Shayla Antrim, Sr. Administrative Assistant LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 4:31 p.m. Draft pending approval There being no written or verbal comments, the public participation section was closed. 1.APPROVAL OF AGENDA a.Approval of Agenda The Sr. Administrative Assistant stated that staff is requesting that agenda item 3.b. be removed from the agenda. A motion was made by Director Coats, seconded by Director Carrillo that the Board approve the March 23, 2022 agenda as amended. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None RECESS INTO CLOSED SESSION The Board entered into Closed Session at 4:32 p.m. as provided in the Ralph M. Brown Act Government Code Section 54956.8 to discuss the item listed on the agenda. RECONVENE THE MEETING The Board reconvened the meeting at 5:30 p.m. PLEDGE OF ALLEGIANCE Mr. John Mura led the flag salute. ROLL CALL OF BOARD MEMBERS Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT Directors: None 2.ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2a: Legal Counsel stated that no reportable action was taken. PRESENTATIONS AND CEREMONIAL ITEMS Introduction of Newly Hired Employees o Ryan Ritualo, Information Technology Manager o Nathan Carlson, Senior Engineer o William Ringland, Conservation/Public Affairs Manager o Jeremy Salas, Network Administrator o Leianna Sara, Customer Service Representative I The General Manager/CEO welcomed and introduced employees that were newly hired since the beginning of the Covid-19 pandemic. Presentation to Eileen Tafolla-Bateman for 25 Years of Dedicated Public Service The General Manager/CEO presented Ms. Eileen Taffolla-Bateman with a resolution for 25 years of dedicated service to the District. Ms. Bateman accepted the resolution with a speech of appreciation. Presentation to Dale Barlow for 25 Years of Dedicated Public Service The Sr. Administrative Assistant announced that Mr. Barlow is unable to attend due to unforeseen circumstances and that he will be presented with the resolution at a future meeting. PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 5:34 p.m. There being no written or verbal comments, the public participation section was closed. 3.APPROVAL OF CONSENT CALENDAR a.Investment Transaction Report for Month Ended February 28, 2022 c. February 2022 Disbursements: Accounts payable disbursements for the period include check numbers 258974 through 259102, bank drafts, and ACH payments in the amount $8,459,940.91 and $409,852.14 A motion was made by Director Coats, seconded by Vice-Chairman Morales, that the Board approve the Consent Calendar item as submitted. The motion carried by the following roll call vote: Ayes: Coats, Goodrich, Carrillo, Morales, Smith Noes: None Absent: None 4.INFORMATIONAL ITEMS a.Sterling Natural Resource Center Update The Director of Strategic Services provided a presentation with an update of construction progress at the Sterling Natural Resource Center (SNRC). The presentation included a flyover video of the SNRC and information regarding the Regional Recycled Water System: the Weaver Basin. She stated that the video will be posted on the District’s website and social media. For information only. 5.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider approval of Plant 101 Stationary Emergency Generator System Construction Contract The Director of Engineering and Operations provided information regarding the allocation of grant money received through the Community Power Resiliency Allocation to Special Districts Program, a program to support additional preparedness measures in response to power outage events. He stated staff solicited a request for bids to construct a stationary emergency generator system at Plant 101 and is recommending that the District enter into a contract with Baker Electric, Inc. A motion was made by Director Carrillo, seconded by Director Smith, that the Board authorize the General Manager/CEO to execute a contract with Baker Electric, Inc. to construct a stationary emergency generator system at Plant 101 for a not-to-exceed amount of $114,141.00. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None b.Consider approval of revisions to Facility Use Policy The Director of Strategic Services discussed revisions to the Facility Use Policy. She discussed the current Facility Rental Program and modifications to the program once the Sterling Natural Resource Center Administration building becomes available for the community to utilize. She reviewed some of the key changes to the Program, including but not limited to removing the requirement to add a contracted server for events with alcohol. She stated that is important to note that facility rentals are not being funded by ratepayers, but by facility rental fees. The Director of Strategic Services added that the Facility Use Policy was reviewed by the Community Advisory Commission and the Legislative & Public Outreach Committee. A motion was made by Director Coats, seconded by Vice-Chairman Morales, that the Board approve the revisions to the Facility Use Policy as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None c.Consider Regular and Alternate Special Districts Member Representatives for the Local Agency Formation Commission of San Bernardino County (LAFCO) Elections The General Manager/CEO provided background information on the services that San Bernardino County LAFCO provides and stated that there is one seat up for the position of Regular Special District Member and one seat for Alternate Special District Member. Director Morales recommended that the Board consider voting for Steven Farrell of the Crestline Village Water District, as Regular Special District Member, and Kevin Kenley of Cucamonga Valley Water District as the Alternate Member of the LAFCO for San Bernardino County. He briefly discussed his reason for his recommendation and stated that they would represent the best interests of the District. A motion was made by Vice-Chairman Morales, seconded by Director Coats, that the Board select Steven Farrell and Kevin Kenley on the official ballots for the Regular and Alternate Special District Member for the 2022 LAFCO Commission election. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 6.REPORTS a.Board of Directors’ Reports Director Smith reported on the following: March 14 he discussed District business with the General Manager/CEO; March 20 he participated in the Local Agency Formation Commission of San Bernardino County’s meeting; March 21 he attended the Association of San Bernardino County Special Districts meeting where there was a presentation on cloud seeding; and March 23 he participated in the Highland Chamber of Commerce monthly meeting. Director Carrillo reported on the following: March 16 he participated in the City of San Bernardino City Council meeting; March 21 he met with the General Manager/CEO where he was provided a District update; and March 22 he participated in the Inland Action meeting via Zoom. Director Coats reported on the following: March 14 he participated in the San Bernardino Valley Municipal Water District’s Board meeting where they discussed redistricting; March 14 he attended the Association of San Bernardino County Special Districts Board meeting where they discussed upcoming meetings; March 16-18 he attended the Water Education Foundation’s Lower Colorado Tour; March 21 he attended the Association of San Bernardino County Special Districts monthly meeting; and March 22 he attended the Highland Chamber of Commerce monthly meeting. Vice-Chairman Morales reported on the following: March 10 he participated in the Association of California Water Agencies (ACWA) Region 9 Board meeting; March 11 he participated in the East Valley Association of Realtors meeting where he provided a Sterling Natural Resource Center update; March 11 & 14 he participated in ACWA Region 9 Work Group meetings; March 15 he participated in the San Bernardino Valley Municipal Water District Board’s meeting where they discussed their Strategic Plan; March 21 he met with the General Manager/CEO to discuss District business; and March 22 he participated in the ACWA Region 9 Board meeting. Chairman Goodrich reported on the following: March 17 he met with the General Manager/CEO to review the agenda; March 21 he attended the Association of San Bernardino County Special Districts meeting where there was a presentation on cloud seeding; and March 22 he met with the General Manager/CEO to discuss District business. Information only. b.General Manager/CEO Report The General Manager/CEO reported on the following: The District will have a booth at the Citrus Harvest Festival this Saturday, March 26 from 10:00 a.m. to 3:30 p.m. The Engineering & Operations Committee will be holding a meeting March 28 at 2:30 p.m. in the Boardroom. He added that all future meetings of the District will be in person only. He stated that he will be representing the region by highlighting the Sterling Natural Resource Center project at several events during the month of April and for this reason, he will not be in attendance at any Board meetings in April: o April 5 - CMUA (California Municipal Utilities Association) Water & Power Conference he will be providing a presentation regarding Successful Community Engagement Strategies. o April 14 - CWEA’s (California Water Environment Association) Annual Conference where he will provide a presentation on Delivering Critical Projects Through Meaningful Community Connections. o April 15-21 - Singapore International Water Conference where the Sterling Natural Resource Center will be highlighted. The General Manager/CEO announced that now that we have returned to normal in-person operations after 2 years of COVID safety adjustments, the Demonstration Garden is now open to the public. Information only. c.Legal Counsel Report No report at this time. d.Board of Directors’ Comments Vice-Chairman Morales thanked everyone for attending the meeting and praised staff for their hard work during the pandemic. Director Coats stated that it’s great to be back to in-person meetings; and wished his wife a happy wedding anniversary. Director Carrillo stated that he’s happy to be back to in-person meetings. Director Smith thanked everyone for attending the meeting. ADJOURN Chairman Goodrich adjourned the meeting at 6:36 p.m. Phillip R. Goodrich, Board President John Mura, Secretary Agenda Item #1b May 12, 20221 Meeting Date: May 12, 2022 Agenda Item #1b Discussion Item Special Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approval of Directors' Fees and Expenses for April 2022 RECOMMENDATION Staff recommends that the Board of Directors approve the Governing Board Members' Fees and Expenses for April 2022. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service With Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT This fiscal impact associated with this agenda item is $9,675.00, which is included in the current fiscal year budget. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS April 2022 Director Expense Reports Name: Month / Year:2022 Meeting No.Stipend Written Oral 1 4 /04 225 2 4 /06 225 3 4 /11 225 4 4 /13 225 5 4 /25 225 6 4 /26 225 7 4 /27 225 8 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.585/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Chris Carrillo April / 0.00 X ( 7 ) Report Provided Subtotal Meetings' Stipend Mileage Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Chris Carrillo Date Meeting / Event Description Date Meeting with General Manager/CEO or Designee City of San Bernardino Council Meeting Meeting with General Manager/CEO or Designee $1,575.00 $1,575.00 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description Regular Board Meeting Meeting with General Manager/CEO or Designee Attended Inland Action Meeting Regular Board Meeting Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2022 1 2 3 4 5 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Call with CEO Mura to discuss district business. Brief Description of Meeting/Event Value to EVWD Call with CEO Mura to discuss agenda for board meeting. Meeting Date:4 / 13 / 2022 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See regular board meeting agenda. Meeting Date:4 / 25 / 2022 Meeting Date:4 / 6 / 2022 Event Description:City of San Bernardino Council Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 11 / 2022 Event Description:Meeting with General Manager/CEO or Designee City of San Bernardino City Council meeting attended via Zoom. Chris Carrillo April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Call with CEO Mura to discuss district business. 4 / 4 / 2022 Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2022 6 7 8 9 10 Chris Carrillo April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Attended Inland Action Zoom meeting. Meeting Date:4 / 27 / 2022 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See regular board meeting agenda. Meeting Date: Meeting Date:4 / 26 / 2022 Event Description:Attended Inland Action Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2022 Meeting No.Stipend Written Oral 1 4 /06 225 2 4 /07 0 3 4 /11 0 4 4 /11 225 5 4 /12 225 6 4 /13 225 7 4 /14 225 8 4 /18 225 9 4 /19 225 10 4 /21 225 11 4 /26 225 12 4 /26 0 13 4 /27 0 14 4 /27 225 15 16 17 18 19 20 Meetings 0.585/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Ronald L. Coats April / 0.00 X ( 10 ) Report Provided Subtotal Meetings' Stipend Mileage Regular Board Meeting San Bernardino Valley MWD Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Ronald L. Coats Date Meeting / Event Description Date San Bernardino Board of Water Commissioners Highland C of C Community Awards ASBCSD Board meeting $2,250.00 $2,250.00 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description San Bernardino Valley MWD San Bernardino Board of Water Commissioners Highland C of C Upper Santa Ana River Water Forum Meeting with General Manager/CEO or Designee San Bernardino Board of Water Commissioners Regular Board Meeting SNRC Site Visit ASBCSD Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2022 1 2 3 4 5 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD They approved an installment sale agreement for drinking water state revolving fund loan for steel reservoir seismic retrofits at 1.2% interest rate Brief Description of Meeting/Event Value to EVWD Attended our monthly board meeting to discuss association business. I was also re-elected president for another year Meeting Date:4 / 11 / 2022 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Met with John Mura to discuss district business and agenda review Meeting Date:4 / 12 / 2022 Meeting Date:4 / 7 / 2022 Event Description:Highland C of C Community Awards Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 11 / 2022 Event Description:ASBCSD Board meeting Attended their annual installation dinner and community awards event. Our own John Mura was awarded the Citizen of the Year for 2021. Ronald L. Coats April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Attended their quarterly RIX meeting where they reviewed the following: Operational and Maintenance reports; Expenditure reports and Compliance reports. When they lose power at the RIX facility, their pumps emergency pumps start up to pump water from their wells so that they can continue water flow into the Santa Ana River 4 / 6 / 2022 San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2022 6 7 8 9 10 Ronald L. Coats April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. They approved several contracts for a variety of services. They had a report on the progress of Sites Reservoir which is moving along on schedule. Meeting Date:4 / 21 / 2022 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD This was a workshop on the Tres Lagos property and nomination of members for the Tres Lagos Mutual Water Company Board of Directors. They gave a good presentation for possible uses of the property and a draft schedule for creating a master plan for the acreage. Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD Attended Special Districts monthly meeting where our guest speaker was Dr. Angelo Farooq, Chairman, California Workforce Development Board who spoke on Workforce Development Meeting Date:4 / 19 / 2022 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Meeting Date:4 / 14 / 2022 Event Description:SNRC Site Visit Brief Description of Meeting/Event Value to EVWD Met Jeff at SNRC to view construction progress Meeting Date:4 / 18 / 2022 Meeting Date:4 / 13 / 2022 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2022 11 12 13 14 15 Ronald L. Coats April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See official Board meeting minutes Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Guest speaker was Mike Gibbs, Director of Aviation for Inland Valley Development Agency and San Bernardino International Airport Meeting Date:4 / 27 / 2022 Event Description:Upper Santa Ana River Water Forum Brief Description of Meeting/Event Value to EVWD They talked about various environmental issues within their service and how working with ESRI they are addressing those issues. They also went over Tres Lagos property and it potential uses. Meeting Date:4 / 27 / 2022 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD They approved a contract for construction management and testing for their facilities relocation project. They are consolidating various facilities into one campus over the next 3 to 5 years. They also approved a contract to rehabilitate a well that has been out of production since October of 2021. They announced they would begin doing service disconnects and assessing late fees for non-payment of bills, on June 6. Meeting Date:4 / 26 / 2022 Event Description:Highland C of C Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 26 / 2022 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2022 Meeting No.Stipend Written Oral 1 4 /06 225 2 4 /06 0 3 4 /07 225 4 4 /07 0 5 4 /13 225 6 4 /15 225 7 4 /16 225 8 4 /17 225 9 4 /18 225 10 4 /19 0 11 4 /20 0 12 4 /21 0 13 4 /22 225 14 4 /26 225 15 4 /27 225 16 17 18 19 20 Meetings 0.585/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval $0.00 Mileage Miscellaneous Reimbursement Description SIWW Conference SIWW Conference SIWW Conference Agenda Review Agenda Review Regular Board Meeting SIWW Conference SIWW Conference SIWW Conference Expense Type $2,250.00 $0.00 Reimbursement Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Phillip R. Goodrich Date Meeting / Event Description Regular Board Meeting Date Legislative & Public Affairs Committee Meeting Chamber of Commerce Event Chamber of Commerce Event $2,250.00 Phillip R. Goodrich April / 0.00 X ( 10 ) Report Provided Subtotal Meetings' Stipend Mileage CHEF Committee meeting SIWW Conference DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2022 1 2 3 4 5 Phillip R. Goodrich April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Updates on Dept.activities, current Legislations and outreach efforts 4 / 6 / 2022 Legislative & Public Affairs Committee Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 6 / 2022 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 7 / 2022 Event Description:Chamber of Commerce Event Attend Chamber Monthly breakfast highlighted by the Highland boxing club Brief Description of Meeting/Event Value to EVWD Attend Highland Chamber Installment dinner where the CEO was recognized as citizin of the year Meeting Date:4 / 7 / 2022 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD With Dir. Of Eng. And Vice Chair for review of current agenda Meeting Date:4 / 13 / 2022 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend reg board meeting Ref. Mins. This day DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2022 6 7 8 9 10 Meeting Date:4 / 15 / 2022 Event Description:SIWW Conference Brief Description of Meeting/Event Value to EVWD Day1 Singapore international water week ,Travel Meeting Date:4 / 16 / 2022 Event Description:SIWW Conference Brief Description of Meeting/Event Value to EVWD Day2 Singapore international water week attend breakout sessions SNRC featured and presented attend meetings,infrastructure tours Meeting Date:4 / 17 / 2022 Event Description:SIWW Conference Brief Description of Meeting/Event Value to EVWD Day3 Singapore international water week attend breakout sessions SNRC featured and presented attend meetings,infrastructure tours Meeting Date:4 / 18 / 2022 Event Description:SIWW Conference Brief Description of Meeting/Event Value to EVWD Day4 Singapore international water week attend breakout sessions SNRC featured and presented attend meetings,infrastructure tours Meeting Date:4 / 19 / 2022 Event Description:SIWW Conference Brief Description of Meeting/Event Value to EVWD Day5 Singapore international water week attend breakout sessions SNRC featured and presented attend meetings,infrastructure tours Phillip R. Goodrich April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2022 11 12 13 14 15 Meeting Date:4 / 20 / 2022 Event Description:SIWW Conference Brief Description of Meeting/Event Value to EVWD Day6 Singapore international water week attend breakout sessions SNRC featured and presented attend meetings,infrastructure tours Meeting Date:4 / 21 / 2022 Event Description:SIWW Conference Brief Description of Meeting/Event Value to EVWD Day 7 Singapore International water week, travel Meeting Date:4 / 22 / 2022 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD With CEO for review of current agenda Meeting Date:4 / 26 / 2022 Event Description:CHEF Committee meeting Brief Description of Meeting/Event Value to EVWD CHEF committee meeting discuss post covid CHEF Meeting Date:4 / 27 / 2022 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend reg. board mtg. Ref. mins this day Phillip R. Goodrich April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2022 Meeting No.Stipend Written Oral 1 4 /01 0 2 4 /05 0 3 4 /06 225 4 4 /07 225 5 4 /07 0 6 4 /08 0 7 4 /11 225 8 4 /13 225 9 4 /15 0 10 4 /16 0 11 4 /17 225 12 4 /18 225 13 4 /19 225 14 4 /20 225 15 4 /21 0 16 4 /26 225 17 4 /27 225 18 4 /29 0 19 20 Meetings 0.585/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval James Morales, Jr.April / 0.00 X ( 10 ) Report Provided Subtotal Meetings' Stipend Mileage SIWW SIWW Administration Signature I certify that the above is correct and accurate to the best of my knowledge. James Morales, Jr. Date Meeting / Event Description SIWW Meeting with General Manager/CEO or Designee Regular Board Meeting ACWA Event Date ACWA Event San Bernardino Valley MWD Legislative & Public Affairs Committee Meeting $2,250.00 $2,250.00 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description SIWW SIWW SIWW SIWW Meeting with General Manager/CEO or Designee Chamber of Commerce Event East Valley Association of Realtors Meeting with General Manager/CEO or Designee Regular Board Meeting Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2022 1 2 3 4 5 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD EVWD employee award. No charge, more than 10 meetings in reporting period. Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:4 / 7 / 2022 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Met with Chiarman and CEO, District business. Meeting Date:4 / 7 / 2022 Meeting Date:4 / 5 / 2022 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 6 / 2022 Event Description:Legislative & Public Affairs Committee Meeting Please refer to public agenda. Board Report assignment. No charge, more than 10 mettings in the reporting period. James Morales, Jr.April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: State legislative committee. No charge, more than 10 meetings in reporting period. 4 / 1 / 2022 ACWA Event Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2022 6 7 8 9 10 James Morales, Jr.April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. SIWW. EVWD presenting. Water innovation trade show. No charge, more than 10 meetings in the reporting period. Meeting Date:4 / 16 / 2022 Event Description:SIWW Brief Description of Meeting/Event Value to EVWD SIWW. EVWD presenting. Water innovation trade show. No charge, more than 10 meetings in the reporting period. Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:4 / 15 / 2022 Event Description:SIWW Brief Description of Meeting/Event Value to EVWD District and SNRC update. No charge, more than 10 meetings in the reporting period. Meeting Date:4 / 11 / 2022 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD SIWW preparation. Meeting Date:4 / 13 / 2022 Meeting Date:4 / 8 / 2022 Event Description:East Valley Association of Realtors Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2022 11 12 13 14 15 James Morales, Jr.April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. SIWW. EVWD presenting. Water innovation trade show. No charge, more than 10 meetings in the reporting period. Event Description:SIWW Brief Description of Meeting/Event Value to EVWD SIWW. EVWD presenting. Water innovation trade show. Meeting Date:4 / 21 / 2022 Event Description:SIWW Brief Description of Meeting/Event Value to EVWD SIWW. EVWD presenting. Water innovation trade show. Meeting Date:4 / 19 / 2022 Event Description:SIWW Brief Description of Meeting/Event Value to EVWD SIWW. EVWD presenting. Water innovation trade show. Meeting Date:4 / 20 / 2022 Event Description:SIWW Brief Description of Meeting/Event Value to EVWD SIWW. EVWD presenting. Water innovation trade show. Meeting Date:4 / 18 / 2022 Event Description:SIWW Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 17 / 2022 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2022 16 17 18 19 20 Event Description: Brief Description of Meeting/Event Value to EVWD James Morales, Jr.April / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. State legislative committee. No charge, more than 10 meetings in the reporting period. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:4 / 29 / 2022 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD Meeting Date:4 / 26 / 2022 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD District business. Meeting Date:4 / 27 / 2022 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 5 Agenda Item #2a May 12, 20221 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item Special Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Review FY 2022-23 Revenue Projections RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS During the regular Board Meeting held on April 13, 2022, Program Managers presented to the Board of Directors (Board) their proposed program goals and objectives for fiscal year (FY) 2022-23. Staff is now working to determine the funding needed to achieve those goals and objectives. The final proposed spending plan will be presented as the proposed budget on June 8, 2022. Before completing an operational spending plan, staff needed to project the amount of revenue and other funding sources that will be available to meet program commitments. Therefore, the purpose of this presentation is to review revenue projections for the upcoming FY beginning with the rates that support them. The Board may recall at the May 12, 2021 Public Hearing adopting the noticed rates for FY 2021-22 through 2023-24. The revenue projections presented in this report have been developed using the adopted rates for FY 2022-23. WATER FUND REVENUE PROJECTIONS The District will provide water services through approximately 21,419 connected accounts in FY 2022-23, with an additional 260 commercial fire service connections for emergency fire suppression needs. The Water and Wastewater Rate Study utilized several assumptions to develop revenue requirements based on the cost-of-services. The cost-of-service includes assumptions on future cost of operations, debt obligations, capital, and reserve funding. Water revenue is collected using the combination of a fixed monthly charge and a three tiered set of volumetric rates. The fixed monthly charge, referred to as the Meter or System Charges, is assessed to each customer based on the size of the meter serving the customer’s property. Meter Charge revenue is fairly simple to project as it involves multiplying the number of Agenda Item #2a May 12, 20222 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item meters of each size, by the rates in effect. Revenue collected with the volumetric tiered rates is referred to as Water Sales. Projections for water sales are a little more complex as they include estimating customer consumption, or demand, and how that demand will be broken down between customer classes, and by the three rate tiers. Below are the projections of water revenue for fiscal year 2022-23. Water Sales demand is estimated at 7,121,000 hundred cubic feet of water (HCF = 748 gallons) for FY 2022-23. HCF is the measure of water used to develop rates and to bill customers, and is therefore used to develop revenue projections. A rate adjustment is scheduled to take effect on January 1, 2023, so once customer demand was established for the fiscal year, it had to be allocated to the six-month periods before and after January 1 before rates could be applied. The table below shows the rates in effect during 2022-23, and the estimated customer demand allocated by rate tier, and by the first and second halves of the fiscal year: Table 1 Tier Rat e Demand (HCF)Rat e Demand (HCF) Tier 1 1.98$ 1,851,000 2.04$ 1,833,000 Tier 2 2.54$ 1,574,000 2.62$ 760,000 Tier 3 3.93$ 725,000 4.05$ 378,000 Tot al 4,150,000 2,971,000 Tot al Est imat ed Demand For FY 2022-23 7,121,000 Jul - Dec 2022 Jan - Jun 2023 The results of multiplying the rates by the demand in the table above, results in total projected sales for FY 2022-23 of $17,700,000. The table below gives the estimated allocation of total sales between customer classes and rate tiers. Table 2 Cust omer Class Tier 1 Tier 2 Tier 3 A mount S ingle Family 4,425,000$ 3,728,000$ 2,072,000$ 10,225,000$ Multi-Family 1,998,000$ 993,000$ 921,000$ 3,912,000$ Commercial 980,000$ 77,000$ 347,000$ 1,404,000$ Irrigation/Construction -$ 1,193,000$ 966,000$ 2,159,000$ Tot al 7,403,000$ 5,991,000$ 4,306,000$ 17,700,000$ Meter Charge revenue for FY 2022-23 is projected to be $9,685,000. A rate adjustment is also scheduled to take effect for these charges on January 1, 2022 so Agenda Item #2a May 12, 20223 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item revenue projections were calculated for two 6-month periods and then combined. The table below provides the meter charge revenue by meter size and rates for each period. Table 3 Size Count Rat e A mount Rat e A mount A mount 5/8"3,517 24.01$ 507,000$ 24.74$ 522,000$ 1,029,000$ 3/4"12,974 30.85$ 2,401,000$ 31.78$ 2,475,000$ 4,876,000$ 1"4,237 44.52$ 1,133,000$ 45.86$ 1,166,000$ 2,299,000$ 1 1/2"271 78.69$ 128,000$ 81.06$ 132,000$ 260,000$ 2"303 119.70$ 218,000$ 123.30$ 224,000$ 442,000$ 3"74 229.05$ 102,000$ 235.93$ 105,000$ 207,000$ 4"22 352.07$ 46,000$ 362.64$ 48,000$ 94,000$ 6"12 693.79$ 50,000$ 714.61$ 51,000$ 101,000$ 8"9 1,923.98$104,000$ 1,981.70$107,000$ 211,000$ Comm Fire 260 Various 83,000$ Various 83,000$ 166,000$ Tot al 21,679 4,772,000$4,913,000$9,685,000$ Met er Jul - Dec 2022 Jan - June 2023 WASTEWATER FUND REVENUE PROJECTIONS The District provides wastewater collection services to District customers through approximately 20,300 connections and will begin treating all wastewater flows collected through those connections when construction of the Sterling Natural Resource Center is complete in the fall of 2022. Currently, the City of San Bernardino municipal water department treats wastewater generated by District customers and the District pays for those services based on City established rates. For 2022-23 the District will bill its customers both system charges and treatment charges that were adopted by the District at the May 2021 public hearing. Although the SNRC will not be fully operation until the fall of 2022, the District’s treatment charges will be used to continue to pay for treatment services provided by the City, until all wastewater flows have been diverted to the SNRC, and will pay for hiring and training plant operators, and other plant startup costs. Like water rates, wastewater rates have a scheduled adjustment effective January 1, 2022, therefore, revenue projection calculations in the following sections have been divided into two six-month periods so that then effective rates can be applied to the appropriate period in order to calculate revenue projections. Wastewater System (Collection) Charges The wastewater system charge is used for managing and maintaining the Districts network of wastewater collection pipelines. System charges have been designed differently for residential customers, versus non-residential customers. Agenda Item #2a May 12, 20224 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item Residential customers, both single-family residential (1-3 units), and multi-family residential (4 or more units) are billed a fixed monthly charge per dwelling unit. Non- residential customers are billed a smaller fixed monthly charge, and then a volumetric charge which is billed based on water consumption. The amount of the volumetric rate varies based on the type of business and the strength of wastewater the business discharges into the system. There are three strength categories and a separate category for Patton State Hospital. Wastewater system charge projections for 2022-23 are explained below. Residential Of the 20,300 sewer connections in the District, 19,688 of them serve residential units. These residential connections are tied to 29,884 dwelling units - 19,230 single-family homes, and 10,654 apartments and mobile homes. The number of dwelling units is the basis for billing residential customers and projecting residential revenue. Projected residential system revenue is calculated by multiplying the number of single- family dwelling units by the single-family rate, and the number of multi-family dwelling units by the multi-family rate. As mentioned above, the fiscal year has been broken into tow 6-month periods because of a rate adjustment on January 1st. The table below summarizes the system charges for Residential: Table 4 Cust omer Type Unit s Rat e Rev enue Rat e Rev enue S ingle-Family 19,230 14.25$ 1,644,100$15.25$1,761,000$ Multi-Family 10,654 13.46$ 860,400$ 14.41$921,000$ 2,504,500$2,682,000$ Tot al 29,884 5,186,500$ July t hrough December Januar y t hrough June Non-Residential 612 commercial and industrial customer connections make up the balance (after residential) of District wastewater connections. Projected revenues are calculated in two stages. The first is a calculation of fixed charges. This was done by multiplying the number of commercial accounts by the District’s monthly flat charge of $10.33 for 6 months between July and December, followed by a monthly flat charge of $11.06 for the six months between January and June of 2023. The second stage calculates the volumetric wastewater component of system charges. This is achieved by estimating total water usage by commercial customers, in HCF, and multiplying the total usage by the volumetric rates. Again, volumetric rates will be adjusted on January 1, 2023, so consumption was estimated for each category of customer-based on strength, and then allocated between the two six-month periods. Agenda Item #2a May 12, 20225 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item As shown in the table below, non-residential billing is expected to make up $434,500 of projected revenue. Table 5 July through December 2022 Mont hly Usage 6 Month Customer Ty pe A ccount s Fixed Charge (HCF)Variable Revenue Patton 1 10.33$ 90,000 0.57$ 51,300$ Low S trength 471 10.33$ 222,000 0.35$ 107,000$ Med S trength 70 10.33$ 33,000 0.46$ 19,500$ High S trength 70 10.33$ 90,000 0.46$ 45,700$ S ub-Total 223,500$ January t hrough June 2023 Patton 1 11.06$ 75,000 0.61$ 45,800$ Low S trength 471 11.06$ 166,000 0.38$ 94,200$ Med S trength 70 11.06$ 35,000 0.50$ 22,000$ High S trength 70 11.06$ 88,000 0.50$ 49,000$ S ub-Total 211,000$ Tot al Non-Resident ial Syst em Charges 434,500$ Based on the calculations in the tables above, total projected wastewater system (collection) revenue for fiscal year 2022-23 is $5,621,000. Wastewater Treatment Charges are charges assessed to cover the costs of capturing and recycling wastewater flows generated by District customers. These costs include payments to the City of San Bernardino, start-up and operation of the Sterling Natural Resource Center (SNRC) debt service on the SNRC, and building replacement reserves which will fund future replacement of critical plant components. Wastewater treatment charges were designed exactly like system charges, with single- family and multi-family residential accounts billed a monthly fixed charge per dwelling unit at their prospective rates, and non-residential customers billed a combination of fixed and volumetric charges. Wastewater treatment charge projections for 2022-23 are explained below. Residential All 29,884 dwelling units billed the fixed system charge are also billed a fixed treatment charge each month. The residential customer base includes 19,230 single-family homes, and 10,654 apartments and mobile homes. Projected residential system revenue is calculated by multiplying the number of single- family dwelling units by the single-family rate, and the number of multi-family dwelling units by the Residential Wastewater Treatment Fixed charge. Agenda Item #2a May 12, 20226 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item Table 6 Cust omer Type Unit s Rat e Rev enue Rat e Rev enue S ingle-Family 19,230 23.37$ 2,696,000$25.01$2,885,000$ Multi-Family 10,654 20.86$ 1,334,000$22.33$1,427,000$ 4,030,000$4,312,000$ Tot al 29,884 8,342,000$ July t hrough December Januar y t hrough June Non-Residential Projected treatment revenue for the 612 commercial and industrial customer connections is calculated in the two stages discussed above. First the calculation of fixed charges which includes multiplying the number of commercial accounts by the District’s monthly flat charge of $10.83 for 6 months between July and December, followed by a monthly flat charge of $11.59 for the six months between January and June of 2023. The second stage calculates the volumetric wastewater component of system charges. This is achieved by estimating total water usage by commercial customers, in HCF, and multiplying the total usage by the volumetric rates. Again, volumetric rates will be adjusted on January 1, 2023, so consumption was estimated for each category of customer based on strength, and then allocated between the two six-month periods. As shown in the table below, non-residential billing is expected to make up $1,509,000 of projected revenue. Table 7 July t hrough December 2022 Mont hly Usage 6 Mont h Cust omer Type A ccount s Fixed Char ge (HCF)Variable Rev enue Patton 1 10.83$ 90,000 1.79$ 161,000$ Low S trength 471 10.83$ 222,000 0.96$ 243,700$ Med S trength 70 10.83$ 33,000 1.53$ 55,000$ High S trength 70 10.83$ 90,000 3.42$ 312,300$ S ub-Total 772,000$ January t hr ough June 2023 Patton 1 11.59$ 75,000 1.92$ 144,000$ Low S trength 471 11.59$ 166,000 1.03$ 204,000$ Med S trength 70 11.59$ 35,000 1.64$ 62,000$ High S trength 70 11.59$ 88,000 3.66$ 327,000$ S ub-Total 737,000$ Tot al Non-Resident ial Sy st em Charges 1,509,000$ Based on the calculations in the tables above, total projected wastewater treatment revenue for fiscal year 2022-23 is $9,851,000. Agenda Item #2a May 12, 20227 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item NON-RATE REVENUE - SNRC Commencement of operations at the Sterling Natural Resource Center in the fall of 2022 introduce new revenue streams surrounding the anaerobic digesters and recycled water. As SNRC operations will not ramp up until late in the calendar year, the District will not realize the full potential of these other revenues, but staff has attempted to estimate how much of those revenues will likely be realized in the upcoming fiscal year. Explanations of those revenues and projections for 2022-23 are presented below. Food Waste Hauler Tipping Fees - In order to maximize the power generation capacity of the SNRC digesters, wastewater solids will be supplemented by attracting high-grade food waste haulers to unload their trucks at the SNRC. It is anticipated that haulers will pay $0.08 per gallon to unload up to 130,000 gallons daily. Local Resource Investment Program (LRIP) Revenue - An LRIP agreement with the San Bernardino Valley Municipal Water District (SBVMWD) commits SBVMWD to buying all SNRC recycled water for 20 years at a rate of $173 per acre foot. The District expects that at least 6,000 acre feet per year will be sold once the SNRC is fully operational, but the estimated delivery of recycled water for the upcoming year has been reduced by one-third to 4,000 acre-feet for FY 2022-23. Electrical Power Generation - Gases released and burned by the anaerobic digesters will be used to generate electrical power to help offset the cost of supplying the SNRC with power. The District has also installed a two-way electric meter for situations where the digesters are generating surplus power which can be sold to the electric grid at $0.127 per kilowatt hour. The District does not anticipate any net revenue from the sale of electric power for FY 2022-23. The table below provides a summary of the projected non-rate SNRC revenue for FY 2022-23: Table 8 Revenue Type Unit of Measure Volume FY 2022-23 Fee Per Unit A mount Tipping Fees Gallon 22.75 MG 0.08$ 1,820,000$ LRIP Acre Foot 4,000 AF 173.00$ 692,000$ Power Generation kWh 0.13$ -$ Tot al 2,512,000$ OTHER CHARGES & OTHER REVENUE SOURCE Other Charges & Other Revenue - include fees related to the collection of delinquent accounts, investment revenue, reimbursements from other agencies, facility rentals, and other miscellaneous revenue. The total revenue projected for FY 2022-23 is $691,000. Initiation of Service, Delinquent, and NSF Fee projections are all based on Agenda Item #2a May 12, 20228 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item 2021-22 actual activity because these revenues were not significantly impacted by the pandemic over the last two years. However, disconnect notice charges and reconnection fees, which were impacted by the moratorium in California on disconnections for non-payment have been increased to reflect the District’s renewed collection efforts. Investment Income projections remain low as the amount of investable funds will likely remain low through at least mid-year until completion of the SNRC and the District has received all reimbursements owed from other agencies. Rising interest rates should also help improve investment earnings in the second half of the fiscal year. Facility Rental Fees and Other Miscellaneous Revenue have been increased to $20,000 each to reflect activity during the current year. Table 9 Ot her Income Wat er Wast ewat er Wat er Reclamat ion A mount Miscellaneous Revenue 20,000$ -$ -$ 20,000$ Facility Rental Fee 20,000$ -$ -$ 20,000$ Returned Payment Fee 4,000$ -$ -$ 4,000$ Disconn./Reconn. Fee 72,000$ -$ -$ 72,000$ Disconn. Notice Char ge 252,000$ -$ -$ 252,000$ Delinquent Fee 140,000$ 95,000$ -$ 235,000$ Initiation of S ervice Fee 42,000$ -$ -$ 42,000$ Interest Revenue 20,000$ 5,000$ 11,000$ 36,000$ Tot al 570,000$ 100,000$ 11,000$ 681,000$ Total Financial Resources available for FY 2022-23 include the $46,050,000 in operating revenue and other income outlined above, plus approximately $30,000,000 from the State Revolving Fund and contributions from other agencies to complete construction of the Sterling Natural Resource Center, the recycled water pipeline, and the Weaver recharge basins. Table 10 Revenue Wat er Wast ewat er Wat er Reclamat ion Tot al Water S ales 17,700,000$-$ -$ 17,700,000$ S ystem Charges 9,685,000 5,621,000 -15,306,000 Wastewater Treatment --9,851,000 9,851,000 Non-Rate Revenue (S NRC)--2,512,000 2,512,000 Other Income 570,000 100,000 11,000 681,000 T otal 27,955,000$5,721,000$ 12,374,000$46,050,000$ At the next budget workshop on June 9, 2022, staff will present a spending plan to utilize these financial resources, entrusted to the District by our stakeholders, in an effective and fiscally responsible manner. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability Agenda Item #2a May 12, 20229 3 9 5 Meeting Date: May 12, 2022 Agenda Item #2a Discussion Item A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ John Mura General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Presentation FY 2022-23 REVENUE PROJECTIONS Brian Tompkins, Chief Financial Officer May 12, 2022 FY 2021-22 REVENUE •Water Sales •Budget projections of 7,121,000 HCF for $17,288,000 did not change at mid-year •Revised Projected Water Sales of 7,714,000 Hundred Cubic Feet (HCF) for $18,763,000 •Water System (Meter) Charges •$9,207,000 on Customer Connections •$135,000 on Temporary Connections •Wastewater System (Collection) Charges •$3,510,000 on 19,229 Single-Family Residential Accounts (Budget $3,502,000) •$1,327,000 on 1,070 Multi-Family/Commercial Accounts (Budget $1,313,000) •Wastewater Treatment Charges •$5,024000 on 19,229 Single-Family Residential Accounts (Budget $5,043,000) •$3,953,000 on 1,070 Multi-Family/Commercial Accounts (Budget $3,665,000) 2 3 EVALUATING RESULTS –WATER REVENUE $9,023,267 $9,217,003 $9,342,000 $6,764,591 $6,938,109 $7,005,000 $6,238,794 $7,504,741 $7,156,000 $3,898,985 $4,862,781 $4,602,000 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 FY 2019-20 FY 2020-21 FY 2021-22 Meter Charges Tier 1 Tier 2 Tier 3 $16,902,370 $19,305,631 $18,763,000 $25.9 Million $28.5 Million $28.1 Million 4 EVALUATING RESULTS –WATER SALES $9,744,650 $11,556,373 $10,992,000 $3,619,290 $3,852,464 $3,678,000 $1,321,465 $1,355,133 $1,679,000$2,216,965 $2,541,661 $2,414,000 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 FY 2019-20 FY 2020-21 FY 2021-22 Single Family Multi Family Commercial Irrigation / Constr $16.9 Million $19.3 Million $18.8 Million 5 EVALUATING RESULTS –WASTEWATER REVENUE $4,647,347 $4,705,683 $4,837,000 $8,496,012 $8,456,508 $8,977,000 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 FY 2019-20 FY 2020-21 FY 2021-22 System Charge Treatment Charge $13.1 Million $13.2 Million $13.8 Million REVENUE PROJECTIONS 6 7 WATER USAGE BY MONTH - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 July Aug Sept Oct Nov Dec Jan Feb March Apr May June 2018-19 2019-20 2020-21 2021-22 2022-23 Projected Usage for FY 2022-23: 7,121,000 HCF or 5,327 MG WATER RATES RATE TYPE CURRENT RATES PHASE 2 ADJUSTMENTS Tier 1 $ 1.98 $ 2.04 Tier 2 2.54 2.62 Tier 3 3.93 4.05 8 Phase 2 Rates Effective January 2023 9 FY 2022-23 WATER SALES PROJECTION Single-Family $10,225,000 Multi-Family $3,912,000 Commercial $1,404,000 Irrigation $2,159,000 TOTAL -$17,700,000 Single-Family Multi-Family Commercial Irrigation RATE TYPE TIER 1 TIER 2 TIER 3 Single-Family Residential $ 4,425,000 $ 3,728,000 $ 2,072,000 Multi-Family Residential 1,998,000 993,000 921,000 Commercial 980,000 77,000 347,000 Irrigation / Construction 0 1,193,000 966,000 TOTAL $ 7,403,000 $ 5,991,000 $ 4,306,000 $7,831,000 $592,000 $701,000 $355,000 $40,000 $166,000 TOTAL -$9,685,000 Single-Family Multi-Family Commercial Irrigation Construction Fire Svcs METER SIZE COUNT CURRENT RATE EFFECTIVE JAN 2023 RATE 5/8”3,661 $ 24.01 $ 24.74 3/4”12,903 30.85 31.78 1”4,215 44.52 45.86 1 1/2”267 78.69 81.06 2”299 119.70 123.30 3”78 229.05 235.93 4”22 352.07 362.64 6”17 693.79 714.61 8”6 1,923.98 1,981.70 Commercial Fire Services 258 Various Various 10 FY 2022-23 METER CHARGES FY 2022-23 PROJECTED WATER REVENUE $9,280,000 $9,342,000 $9,685,000 $17,288,000 $18,763,000 $17,700,000 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 FY 2021-22 Budget FY 2021-22 Projected FY 2022-23 Proposed Meter Water Sales 11 $26.6 Million $28.1 Million $27.4 Million CUSTOMER TYPE DWELLING UNITS / ACCTS MONTHLY FIXED CHARGE ESTIMATED USAGE (HCF) CHARGE (HCF) REVENUE 6 MONTHS Single-Family Residential 19,230 $ 14.25 N/A N/A $ 1,644,100 Multi-Family Residential 10,654 13.46 N/A N/A 860,400 Commercial -Low Strength 471 10.33 222,000 $ 0.35 107,000 Commercial -Med Strength 70 10.33 33,000 0.46 19,500 Commercial -High Strength 70 10.33 90,000 0.46 45,700 Commercial -Patton 1 10.33 90,000 0.57 51,300 WASTEWATER SYSTEM CHARGES -JULY TO DECEMBER $ 2,728,000 12 WASTEWATER SYSTEM CHARGES: JULY TO DECEMBER 2022 CUSTOMER TYPE DWELLING UNITS / ACCTS MONTHLY FIXED CHARGE ESTIMATED USAGE (HCF) CHARGE (HCF) REVENUE 2 MONTHS Single-Family Residential 19,250 $ 15.25 N/A N/A $ 1,761,000 Multi-Family Residential 10,654 14.41 N/A N/A 921,000 Commercial -Low Strength 471 11.06 166,000 $ 0.38 94,200 Commercial -Med Strength 70 11.06 35,000 0.50 22,000 Commercial -High Strength 70 11.06 88,000 0.50 49,000 Commercial -Patton 1 11.06 75,000 0.61 45,800 WASTEWATER SYSTEM CHARGES -JANUARY TO JUNE $ 2,893,000 PREVIOUS PAGE -JULY TO DECEMBER $ 2,728,000 TOTAL PROJECTED SYSTEM CHARGES $ 5,621,000 13 WASTEWATER SYSTEM CHARGES: JANUARY TO JUNE 2023 14 WASTEWATER TREATMENT CHARGES: JULY TO DECEMBER 2022 CUSTOMER TYPE DWELLING UNITS / ACCTS MONTHLY FIXED CHARGE ESTIMATED USAGE (HCF) CHARGE (HCF) REVENUE 6 MONTHS Single-Family Residential 19,230 $ 23.37 N/A N/A $ 2,696,000 Multi-Family Residential 10,654 20.86 N/A N/A 1,334,000 Commercial -Low Strength 471 10.83 222,000 $ 0.96 243,700 Commercial -Med Strength 70 10.83 33,000 1.53 55,000 Commercial -High Strength 70 10.83 90,000 3.42 312,300 Commercial -Patton 1 10.83 90,000 1.79 161,000 WASTEWATER TREATMENT CHARGES -JULY TO DECEMBER $4,802,000 15 WASTEWATER TREATMENT CHARGES: JANUARY TO JUNE 2023 CUSTOMER TYPE DWELLING UNITS / ACCTS MONTHLY FIXED CHARGE ESTIMATED USAGE (HCF) CHARGE (HCF) REVENUE 6 MONTHS Single-Family Residential 19,230 $ 25.01 N/A N/A $ 2,885,000 Multi-Family Residential 10,654 22.33 N/A N/A 1,427,000 Commercial -Low Strength 471 11.59 166,000 $ 1.03 204,000 Commercial -Med Strength 70 11.59 35,000 1.64 62,000 Commercial -High Strength 70 11.59 88,000 3.66 327,000 Commercial -Patton 1 11.59 75,000 1.92 144,000 WASTEWATER TREATMENT CHARGES -JANUARY TO JUNE $5,049,000 FROM PREVIOUS PAGE -JULY TO DECEMBER $4,802,000 TOTAL PROJECTED TREATMENT CHARGES $9,851,000 16 SNRC NON-RATE REVENUE FEBRUARY TO JUNE 2022 REVENUE ESTIMATED RATE PERIOD IN EFFECT ESTIMATED VOLUME 2022-23 REVENUE Liquid Waste Hauler Tipping Fees $0.08 / Gallon October 2022 22.75 MG $ 1,820,000 Local Resource Investment Program (LRIP)$173 / Acre Foot October 2022 4,000 AF 692,000 SB 1122 Energy Sales $0.127 / kWH FY 2022-23 N/A 0 TOTAL SNRC NON-RATE REVENUE $ 2,512,000 17 FY 2022-23 WASTEWATER REVENUE Collection Charges $5,621,000 Wastewater Treatment Charges -SNRC $9,851,000 Other Revenue -SNRC $2,512,000 Total Wastewater Revenue $17,984,000 Treatment -55% Collections -31% Other SNRC -14% (Will Climb Higher in Future Years) 18 FY 2022-23 OTHER CHARGES & REVENUE $20,000 $20,000 $4,000 $72,000 $252,000 $235,000 $42,000 $36,000 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Miscellaneous Revenue Facility Rental Fee Returned Payment Fee Service Reconnect Charge Disconnection Notice Charge Delinquent Charge Service Initiation Charge Interest Revenue TOTAL PROJECTED REVENUE -$681,000 $8,592,950 $8,496,012 $8,456,508 $8,977,000 $9,851,000 $4,643,732 $4,647,347 $4,705,683 $4,837,000 $5,621,000 $2,512,000 $24,756,535 $25,925,637 $28,522,634 $28,105,000 $27,385,000 $1,316,081 $743,916 $551,989 $474,500 $681,000 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 Wastewater Treatment Charges Wastewater System Charges SNRC Non-Rate Water Revenue Other 19 FY 2022-23 TOTAL PROJECTED REVENUE $39.3 Million $39.8 Million $42.2 Million $42.4 Million $46.1 Million 20 FY 2022-23 OPERATING BUDGET SUMMARY WATER WASTEWATER COLLECTION WATER RECLAMATION Sales & Services $ 27,385,000 $ 5,621,000 $ 9,851,000 SNRC Non-Rate Revenue 0 0 2,512,000 Other Charges 605,000 95,000 0 Investment & Miscellaneous Revenue 60,000 5,000 11,000 TOTAL REVENUE $ 28,050,000 $ 5,721,000 $ 12,374,000 Operations $ 20,088,000 $ 4,996,000 $ 10,974,000 Debt Service 3,120,000 275,000 700,000 Capital Expenditures 4,842,000 450,000 0 Reserve Contribution 0 0 700,000 TOTAL EXPENDITURES $ 28,050,000 $ 5,721,000 $ 12,374,000 DISCUSSION