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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 04/12/2023BOARD OF DIRECTORS APRIL 12, 2023 East Valley Water District was formed in 1954 and provides water and wastewater services to 104,000 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 Michael Moore General Manager/CEO James Morales, Jr. Vice­Chairman Brian W. 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 Regular Meeting April 12, 2023 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org 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.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.​Approve the March 8, 2023 Regular Board Meeting Minutes b.Approve the February 22, 2023 Regular Board Meeting Minutes c.Approve the March 22, 2023 Regular Board Meeting Minutes d.Approval of Directors' Fees and Expenses for March 2023 e.February 2023 Disbursements: Accounts payable disbursements for the period include check numbers 260726 through 260872, bank drafts, and ACH payments in the amount of $9,493,280.70 and $419,736.49 for payroll f.Adopt Resolution 2023.06 ­ Investment Policy 3.INFORMATIONAL ITEMS a.FY 2023­24 Program Goals and Objectives Workshop b.Total Dissolved Solids and Water Recycling 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Sterling Natural Resource Center Contract Amendments for Balfour Beatty, AKD Consulting, and Group Delta Consultants Contracts 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSAPRIL 12, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 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 Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. 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 Regular Meeting April 12, 2023 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org 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.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.​Approve the March 8, 2023 Regular Board Meeting Minutes b.Approve the February 22, 2023 Regular Board Meeting Minutes c.Approve the March 22, 2023 Regular Board Meeting Minutes d.Approval of Directors' Fees and Expenses for March 2023 e.February 2023 Disbursements: Accounts payable disbursements for the period include check numbers 260726 through 260872, bank drafts, and ACH payments in the amount of $9,493,280.70 and $419,736.49 for payroll f.Adopt Resolution 2023.06 ­ Investment Policy 3.INFORMATIONAL ITEMS a.FY 2023­24 Program Goals and Objectives Workshop b.Total Dissolved Solids and Water Recycling 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Sterling Natural Resource Center Contract Amendments for Balfour Beatty, AKD Consulting, and Group Delta Consultants Contracts 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSAPRIL 12, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 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 Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. 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 Regular MeetingApril 12, 2023 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE 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.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.​Approve the March 8, 2023 Regular Board Meeting Minutes b.Approve the February 22, 2023 Regular Board Meeting Minutes c.Approve the March 22, 2023 Regular Board Meeting Minutes d.Approval of Directors' Fees and Expenses for March 2023 e.February 2023 Disbursements: Accounts payable disbursements for the period include check numbers 260726 through 260872, bank drafts, and ACH payments in the amount of $9,493,280.70 and $419,736.49 for payroll f.Adopt Resolution 2023.06 ­ Investment Policy 3.INFORMATIONAL ITEMS a.FY 2023­24 Program Goals and Objectives Workshop b.Total Dissolved Solids and Water Recycling 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Sterling Natural Resource Center Contract Amendments for Balfour Beatty, AKD Consulting, and Group Delta Consultants Contracts 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSAPRIL 12, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 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 Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. 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 Regular MeetingApril 12, 2023 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE 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 filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERPLEDGE OF ALLEGIANCEROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis agenda contains a brief general description of each item to be considered.Except as otherwise provided by law, no action shall be taken on any item notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of Agenda2.APPROVAL OF CONSENT CALENDARAll matters listed under the Consent Calendar are considered by the Board ofDirectors to be routine and will be enacted in one motion. There will be nodiscussion of these items prior to the time the board considers the motion unlessmembers of the board, the administrative staff, or the public request specific itemsto be discussed and/or removed from the Consent Calendar.a.​Approve the March 8, 2023 Regular Board Meeting Minutesb.Approve the February 22, 2023 Regular Board Meeting Minutesc.Approve the March 22, 2023 Regular Board Meeting Minutesd.Approval of Directors' Fees and Expenses for March 2023 e.February 2023 Disbursements: Accounts payable disbursements for the period include check numbers 260726 through 260872, bank drafts, and ACH payments in the amount of $9,493,280.70 and $419,736.49 for payroll f.Adopt Resolution 2023.06 ­ Investment Policy 3.INFORMATIONAL ITEMS a.FY 2023­24 Program Goals and Objectives Workshop b.Total Dissolved Solids and Water Recycling 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Sterling Natural Resource Center Contract Amendments for Balfour Beatty, AKD Consulting, and Group Delta Consultants Contracts 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report Water Supply Dashboard c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #2a March 22, 20231 Meeting Date: March 22, 2023 Agenda Item #2a Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the March 8, 2023 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the March 8, 2023 regular Board meeting minutes. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability 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: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft March 8, 2023 Regular Board Meeting Minutes Regular Board Meeting Meeting Date: March 8, 2023 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:30 p.m. PLEDGE OF ALLEGIANCE Director Coats led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT None STAFF Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kelly Malloy, Director of Strategic Services; Rocky Welborn, Water Reclamation Manager; William Ringland, Public Affairs/Conservation Manager; Ryan Ritualo, IT Manager; Shayla Antrim, Administrative Specialist LEGAL COUNSEL Marty Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 5:31 p.m. Draft Pending Approval 6 4 8 The Administrative Specialist announced that one written public comment was received by email from Amelia Erika and Ricardo Velarde. The letter was read aloud and the General Manager/CEO announced that he will follow up with the customer. There being no further written or verbal comments, the public participation section was closed at 5:34 p.m. 1.APPROVAL OF AGENDA a.Approval of Agenda A motion was made by Director Coats, seconded by Director Carrillo, that the Board approve the March 8, 2023 agenda as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 2.APPROVAL OF CONSENT CALENDAR a.February 8, 2023 Regular Board Meeting Minutes b.Approval of Directors Fees and Expenses for February 2023 A motion was made by Vice Chairman Morales, seconded by Director Smith, that the Board approve the Consent Calendar items as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 3.INFORMATIONAL ITEMS a. Septic-to-Sewer Conversion The Director of Engineering and Operations updated the Board on the progress of the Septic-to-Sewer conversion project. He provided an overview of what a septic system entails and the benefits of transitioning to sewer. He stated that $350 million has been allocated at the State level towards converting septic systems to sewer systems, mainly targeting disadvantaged communities and discussed factors that may determine how the grant funds are allocated. That staff is currently in the process of developing a grant application with the support of a consultant. He discussed the steps needed to accomplish the conversion of septic systems to the District’s sewer system, permitting, cost allocations, obligations of the ratepayers, and the role the County plays in the conversion process. The Director of Engineering and Operations identified areas on a map that are on septic systems and where the District first plans to focus on septic to sewer conversions. 6 4 8 The Director of Engineering and Operations responded to a question from a member of the public, Wayne Brown, in regard to slide #4 referring to what costs will be covered. He stated that he expects all costs to be covered with grant funds, but with the possible exception of city permitting costs. The Director of Engineering and Operations responded to a question from a member of the public, Mark Falcone. He stated that a key factor of the grant funding is to pursue those in disadvantaged areas. He stated that the District is hoping that there will be more State funding in the future to cover the remaining 900+ parcels that are on septic that will not be covered under this first round of conversions. The Director of Engineering and Operations responded to a question from a member of the public, Fred Yauger, in regard to slide #13 referring to an area of new development and how the developer plans to proceed with wastewater. He stated that more research needs to be done to determine how that area will be handled. The Director of Engineering and Operations responded to a question from a member of the public, Dr. Alan Kay, in regard to how the District will handle properties that are on septic, that are tenant-occupied versus owner-occupied; how will tenants be ensured that they are not negatively impacted. He stated that there is no way to force owners to convert to the sewer system. He added that if a property owner’s septic system fails and needs a new septic system, if they are within 200 feet of the sewer line, the County will not issue a new permit for septic. The Director of Engineering and Operations responded to a question from Director Coats. He stated that a ratepayer that converts to sewer may not want to pay the monthly fee; in that case, staff will use outreach efforts to educate the public on the benefits of conversion. If a large amount of property owners in a specific area do not want to participate in the conversion program, they will move on to another area within the District. The Director of Engineering and Operations responded to a question from Chairman Goodrich. He estimates that it will take approximately 4-5 years to convert 600 ratepayers from septic to sewer, depending on the conditions of the grant funding. The General Manager/CEO and staff responded to questions from the Board. For information only. 4.DISCUSSION AND POSSIBLE ACTION ITEMS 6 4 8 a. Consider Sterling Natural Resource Center – Fourth Amendment to the Regional Recycled Water Facilities Reimbursement Agreement The General Manager/CEO provided an overview of the Regional Recycled Water Facilities Reimbursement Agreement with San Bernardino Valley Municipal Water District (Valley District) for reimbursements of costs associated with the Regional Recycled Water Pipeline (RRWP) and Weaver Basin. The Director of Engineering and Operations provided an update on the progress of the Regional Recycled Pipeline construction taking place between the Sterling Natural Resource Center and the Weaver Basin. The Director of Engineering and Operations discussed details of the fourth amendment to the Regional Recycled Water Facilities Reimbursement Agreement with Valley District. He stated that the reimbursement budget in the Agreement was based on a 30% design of the RRWP. That several changes to the RRWP were necessary due to permitting requirements. That permitting requirements resulted in additional costs due to cost escalation, delays, and construction constraints based on permit conditions. An additional cost of $6,779,216 is required to complete the RRWP. The proposed reimbursement from Valley District will be $44,429,216. He added that on February 14, 2023, Valley District Board of Directors approved the Fourth Amendment to the Agreement. The General Manager/CEO stated that the next step will be to give an amendment to the contractor which will be brought to the Board at a later date. A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board of Directors authorize the General Manager/CEO to execute the Fourth Amendment to the Regional Recycled Water Facilities Reimbursement Agreement with the San Bernardino Valley Municipal Water District, as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None b. Consider Memorandum of Understanding, Cost Share Agreement and Letter of Funding Commitment for the Bunker Hill Basin Regional Recycled Water Feasibility Study The General Manager/CEO stated that in order to discharge from the Sterling Natural Resource Center a permit is needed from the Regional Water Quality Control Board. An engineering study needs to be performed in order to ensure that discharge will not degrade the groundwater basin. He stated that the engineering study will not only cover the Sterling Natural Resource Center, but all those that are part of the entire Regional Recycled Water Project. 6 4 8 The Director of Engineering and Operations provided details on documents needed to begin the collaborative effort with the potential recycled water agencies and San Bernardino Valley Municipal Water District to evaluate mitigation alternatives: 1) Memorandum of Understanding; 2) Cost Share Agreement; and 3) Letter of Funding Commitment. He stated that this effort will work together with agencies to ensure salt loading to the groundwater basin does not impact water supplies. A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board of Directors authorize the General Manager/CEO to execute a Memorandum of Understanding, Cost Share Agreement and Letter of Funding Commitment related to Mitigation of Salt Loading in the Bunker Hill-B Groundwater Basin, as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 5.REPORTS a.Board of Directors’ Reports Director Carrillo reported on the following: February 23 he attended the Community Heritage and Education Foundation Board of Directors meeting; February 24 he toured the Sterling Natural Resource Center with the General Manager/CEO; and March 7 he met with the General Manager/CEO to review the agenda. Director Coats reported on the following: February 23 he attended the Community Heritage and Education Foundation Board of Directors meeting; February 28 he attended the San Bernardino Municipal Water Department’s Board meeting; February 28 he attended the Highland Chamber of Commerce meeting; March 1 he met with the General Manager/CEO to discuss District business; March 2 he attended the San Bernardino Valley Municipal Water District Policy & Administration Workshop; and March 7 he met with the General Manager/CEO to review the agenda. Director Smith reported on the following: February 28 he attended the Highland Chamber of Commerce meeting; March 7 he met with the General Manager/CEO to review the agenda; and March 8 he attended the San Bernardino Valley Water Conservation District Board meeting with nothing to report. Vice Chairman Morales reported on the following: February 28 he participated in a meeting with State legislators and delegates in Sacramento, where they discussed septic to sewer grant applications and provided an update on the Sterling Natural Resource Center; March 7 he attended the San Bernardino Valley Municipal Water District Board meeting where they approved a $65 million project to build additional water storage infrastructure and discussed holding a workshop in the future to decide how they approach legislative activities. 6 4 8 Chairman Goodrich reported on the following: February 23 he attended the Community Heritage and Education Foundation Board of Directors meeting; February 28 he participated in a meeting with State legislators and delegates in Sacramento; and March 2 he met with the General Manager/CEO to review the agenda and discuss District business. For information only. b.General Manager/CEO Report The General Manager/CEO announced the following: •March 2 the Employee Events Association (EEA) held the Spring Drive to raise money for Jefferson Elementary School students to attend Science Camp where they received approximately $800 in donations. The EEA donated $500, bringing the total to $1,300. He read an email from the Principal regarding the students’ time at Science Camp and thanking the EEA for their donations. •Next week is National Ground Water Week. Just as a reminder, items like cleaners, pesticides, paint, fertilizers, chlorine, and motor oil should never be dumped down the drain, trash or ground. Instead, take them to a hazardous waste collection site. •The Finance and Human Resources Committee will be meeting on Tuesday, March 14th at 3:30 p.m. •March 17th, East Valley Water District will be hosting a pop-up booth at Indian Springs High School during the school’s lunch to engage with students and provide conservation information. •He provided current photos of the Seven Oaks Dam with snow-capped mountains in the background. •On Tuesday, staff met with Metropolitan Water District and provided a tour of the Sterling Natural Resource Center. •Last week he went on a Legislative Trip with staff to Sacramento and met with several delegates. They provided updates on the Sterling Natural Resource Center, and stated that trip it was very productive. He thanked delegates for their contributions and for getting septic to sewer added to the budget. The General Manager/CEO introduced the Director of Engineering and Operations to present the Water Supply Dashboard. Mr. Noelte reviewed key highlights of the Dashboard. Director Carrillo and Chairman Goodrich both commented that they appreciate the Water Supply Dashboard update and asked that they continue in the future. 6 4 8 For information only. c.Legal Counsel Report No report at this time. d.Board of Directors’ Comments Director Carrillo thanked the General Manager/CEO for meeting with Metropolitan Water District and said that it was impressive that they came to us to learn about the District’s project. He thanked the General Manager/CEO, Chairman and Vice Chairman for meeting with state legislators and for being a voice for the region. Director Coats thanked the Director of Engineering and Operations for his reports and thanked staff for all they do. Vice Chairman Morales echoed Director Carrillo’s comments about Metropolitan Water District. He stated that it is a testament to staff of where we are and who we are. He expressed his appreciation to Customer Service for working with customers and that he appreciates the Employee Events Association. Chairman Goodrich stated that we have taken many things for granted, and as a District, we need to take care of groundwater by recharging it and monitoring the salt. For information only. ADJOURN Chairman Goodrich adjourned the meeting at 6:55 p.m. Phillip R. Goodrich, Board President Michael Moore, Board Secretary Agenda Item #2b April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #2b Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the February 22, 2023 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the February 22, 2023 regular Board meeting minutes. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability 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: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft February 22, 2023 Regular Board Meeting Minutes Regular Board Meeting Meeting Date: February 22, 2023 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:30 p.m. PLEDGE OF ALLEGIANCE Captain Casey Jiles led the flag salute. PRESENTATIONS AND CEREMONIAL ITEMS a.Certificate of Appreciation to Deputy Zachary Twardowski for his Service to the Community The General Manager/CEO presented Deputy Twardowski with a Certificate of Appreciation for his service to the community. b.Vehicle Donation to Highland Senior Center Ms. Penny Lilburn, Executive Director of the Highland Senior Center, accepted a vehicle donation from the District. She stated that she appreciates the donation and that it will be put to good use, delivering thousands of pounds of food to over 800 senior citizens. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT None STAFF Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kerrie Bryan, Director of Administrative Draft Pending Approval 9 4 3 Services; Kelly Malloy, Director of Strategic Services; Rocky Welborn, Water Reclamation Manager; William Ringland, Public Affairs/Conservation Manager; Justine Hendricksen, District Clerk; Ryan Ritualo, IT Manager; Shayla Antrim, Administrative Specialist LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 5:40 p.m. There being no written or verbal comments, the public participation section was closed. 1.APPROVAL OF AGENDA a.Approval of Agenda A motion was made by Director Smith, seconded by Director Coats, that the Board approve the February 22, 2023 agenda as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 2.APPROVAL OF CONSENT CALENDAR a.Financial Statements for December 2022 b.Financial Statements for January 2023 c.January 2023 Disbursements: Accounts payable disbursements for the period include check numbers 260611 through 260725, bank drafts, and ACH payments in the amount of $3,758,246.03 and $436,002.62 for payroll d.Investment Transaction Report for Month Ended January 31, 2023 e.Resolution 2023.02 - Authorizing the Grant Application, Acceptance, and Execution for the East Valley Water District Groundwater Supply Resiliency - New Well Construction Project f.Resolution 2023.03 - Designation of Applicant's Agent Resolution for Non- State Agencies g.Resolution 2023.04 - Designating an Authorized Representative or Designee to carry out the responsibilities under the Financing Agreement for the State Water Resources Control Board h.Approve the Cancellation of the May 10, 2023 Regular Board Meeting 9 4 3 A motion was made by Director Coats, seconded by Director Smith, that the Board approve the Consent Calendar items as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 3.INFORMATIONAL ITEMS a. 2022 Top Workplace Program The Director of Administrative Services provided information regarding the District’s participation and placement in the Press Enterprise Top Workplace Program. She stated this is the District’s 8th year participating in the program. She stated that staff fills out an anonymous survey and results are provided to the District as a summary. The Director of Administrative Services responded to Mr. Kielhold’s question stating that there are 66 staff members currently employed at the District. The General Manager/CEO and staff responded to questions from the Board. For information only. 4.DISCUSSION AND POSSIBLE ACTION ITEMS a. Consider Approval of Administrative Policy 2.4 - Telework Policy The Director of Administrative Services provided information regarding Administrative Policy 2.4 – Telework Policy. She stated that 75% similar agencies have implemented a telework policy. She discussed the benefits to the District and staff and described how the policy will work once implemented. She added that the policy has been reviewed by the Finance & Human Resources Committee and will be reviewed periodically. The Director of Administrative Services responded to several questions from the Board. A motion was made by Director Coats, seconded by Director Carrillo, that the Board approve Administrative Policy 2.4 – Telework Policy, as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None b. Consider Approval of Fiscal Year 2022-23 Mid-Year Budget Revisions The Chief Financial Officer provided a presentation of FY 2022-23 mid-year Budget revisions: he reviewed the operating budget, program summaries, discussed staffing 9 4 3 changes, presented an overview of revisions and adjustments to the Capital Budget, and reviewed accomplishments and District awards. He discussed details of adjustments to expenses and revenues due to the delay in the commissioning of the Sterling Natural Resource Center. He stated that the revisions to the Budget were reviewed by the Finance & Human Resources Committee. The Chief Financial Officer responded to several questions from the Board. A motion was made by Director Coats, seconded by Director Smith, that the Board approve amendments to the FY 2022-23 Operating and Capital Budgets as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None c. Consider Approval of the FY 2023-24 Five-Year Work Plan The General Manager/CEO reviewed key elements of the District’s 2023-24 Five-Year Work Plan. He provided background information on the development of the Plan and discussed minor adjustments made from previous years. He stated that during a series of meetings with staff and the Community Advisory Commission, an updated Five-Year Work Plan has been prepared. He reviewed organizational priorities and provided details on goals and objectives contained in the Plan. A motion was made by Vice Chairman Morales, seconded by Director Carrillo, that the Board approve the Fiscal Year 2023-24 Five-Year Work Plan, as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 5.REPORTS a.Board of Directors’ Reports Director Smith reported that on February 14 he attended the Finance & Human Resources Committee meeting. Director Carrillo reported on the following: February 9 he attended the Inland Action meeting where Assemblyman Essayli was in attendance; February 14 he attended the Inland Action meeting where Sheriff Dicus and District Attorney Anderson were the speakers and provided a report on crime within the County; and February 17 he met with the General Manager/CEO to review the agenda and discuss District business. 9 4 3 Director Coats reported on the following: February 9 he attended the San Bernardino Valley Municipal Water District Board meeting where they reviewed and discussed mid- year general fund budget; February 14 he attended the City of San Bernardino Water Department Board meeting where they discussed Covid 19 and adding additional wells; February 14 he attended the Finance and Human Resources Committee meeting where they reviewed Top Workplace survey results, Telework Policy, and went reviewed the mid-year budget; February 15 he met with the General Manager/CEO to discuss District business; February 20 he attended the Association of San Bernardino County Special Districts Board meeting where they discussed their in-coming general meeting and unveiled their new Special Districts web site for the local association; and February 21 he met with the General Manager/CEO to review the agenda and discuss District business. Vice Chairman Morales reported on the following: February 9 he attended the Legislative & Public Outreach Committee meeting; February 10 he attended the Association of California Water Agencies (ACWA) State Legislative Committee meeting; February 14 he attended the San Bernardino Valley Municipal Water District’s Engineering Committee meeting where they discussed the contract to finish the Regional Recycled Water Pipeline; February 16 he met with the General Manager/CEO to discuss District business; February 17 he attended the ACWA Region 9 Board meeting where they discussed education for upcoming conferences; and February 21 he attended the San Bernardino Valley Municipal Water District Board meeting. Chairman Goodrich reported on the following: February 9 he attended the Legislative & Public Outreach Committee meeting; February 14 he attended the Highland City Council meeting where they discussed airport development activity and the 210 freeway project; February 16 he met with the General Manager/CEO to review the agenda and discuss District business. For information only. b.General Manager/CEO Report The General Manager/CEO announced the following: •February 18 the District held a Conservation Workshop at the Sterling Natural Resource Center. There were approximately 35 community members in attendance. The workshop discussed how to address common leaks in the home. •February 23 at 10am the District will be holding the annual Community Heritage and Education Foundation (CHEF) Board of Directors meeting in the Boardroom. •The Employee Events Association assembled 90 backpacks for Hunt Elementary students attending Science Camp. The backpacks will be delivered to students later this week. 9 4 3 •He provided information regarding the Governor’s Executive Order made on February 13, 2023 regarding climate action; he stated that this will help expedite permits for projects. •The Department of Water Resources announced an increase in the State Water Project Table A allocation from 30% to 35%. For information only. c.Legal Counsel Report No report at this time. d.Board of Directors’ Comments Director Smith stated that he spent some of his best years at Jefferson Hunt Elementary School; and he recognized George Washington’s birthday. Director Coats shared the Association of San Bernardino County Special Districts’ new website: asbcsd.specialdistrict.org. He stated that there will be many improvements coming over the next couple of weeks. Vice Chairman Morales stated that he received a compliment from a customer who had a great time at the District’s Conservation Workshop over the weekend; he is pleased that the Community Advisory Commission is going strong; and that he’s impressed with the Employee Events Association. Chairman Goodrich stated that he appreciates Mr. Tompkins and staff for their hard work on the budget and Five-Year Work Plan. For information only. ADJOURN Chairman Goodrich adjourned the meeting at 7:30 p.m. Phillip R. Goodrich, Board President Michael Moore, Board Secretary Agenda Item #2c April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #2c Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the March 22, 2023 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the March 22, 2023 regular Board meeting minutes. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability 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: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft March 22, 2023 Regular Board Meeting Minutes Regular Board Meeting & Public Hearing Meeting Date: March 22, 2023 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:30 p.m. PLEDGE OF ALLEGIANCE Director Coats led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Smith ABSENT Director Morales STAFF Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kerrie Bryan, Director of Administrative Services; Kelly Malloy, Director of Strategic Services; Rocky Welborn, Water Reclamation Manager; Patrick Milroy, Operations Manager; Justine Hendricksen, District Clerk; William Ringland, Public Affairs/Conservation Manager; Ryan Ritualo, IT Manager; Shayla Antrim, Administrative Specialist LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 5:32 p.m. Draft Pending Approval 6 4 8 There being no written or verbal comments, the public participation section was closed. 1.APPROVAL OF AGENDA a.Approval of Agenda A motion was made by Director Coats, seconded by Director Carrillo, that the Board approve the March 22, 2023 agenda as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Smith Noes: None Absent: Director Morales 2.APPROVAL OF CONSENT CALENDAR a.Investment Transaction Report for Month Ended February 28, 2023 b.Financial Statements for February 2023 A motion was made by Director Smith, seconded by Director Coats, that the Board approve the Consent Calendar items as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Smith Noes: None Absent: Morales 3.INFORMATIONAL ITEMS a. Water and Wastewater Pathway and Educational Partnership Update The Director of Administrative Services provided an update on the District’s Pathway Program and other educational partnership opportunities. She provided an overview of the history of the pathway program. She discussed details of the program, including but not limited to challenges faced during previous years and how the program was restructured, the Harbor Freight Fellowship Initiative trades-related internship, integration with Arroyo Valley High School’s Core Academy and San Gorgonio High School Construction Trades Pathway program, and the District’s Summer Internship Program. The Director of Administrative Services provided further details on the Summer Internship Program. She stated that this will be the first year of the program and that the majority of the program will be held at the Sterling Natural Resource Center. Students will be required to fill out an application to apply for the internship program. Once completed, the students will receive a certificate of completion. She added that interns will be given priority over interviews for job openings at the District. For information only. 6 4 8 4.DISCUSSION AND POSSIBLE ACTION ITEMS a. Consider Adoption of Sewer Ordinance No. 404 East Valley Water District Sewer Regulations and Service Change Ordinance, Public Hearing The General Manager/CEO stated that the purpose of the update to the sewer ordinance is to establish a source control and pretreatment program. The Water Reclamation Manager discussed revisions to the District’s Sewer Rules and Regulations ordinance. He stated that Title 40 of the code of federal regulations requires that any agency that operates a publicly owned treatment works is required to implement national pretreatment standards to control pollutants that can pass through or interfere with treatment processes at wastewater treatment plants. Historically, the District has relied on the City of San Bernardino to run the program due to being the agency that has treated the District’s wastewater. He stated that regulators have requested that the program be in place before they issue permits. He provided details of the District’s proposed wastewater pretreatment program and stated that updates to the ordinance are necessary to establish policies and procedures for non-compliance by creating enforcement programs. He also reviewed fines and penalties associated with non-compliance. CHAIRMAN GOODRICH OPENED THE PUBLIC HEARING AT 6:14 P.M. Chairman Goodrich declared the public participation section of the meeting open at 6:14 p.m. No public comments received. CHAIRMAN GOODRICH ANNOUNCED THE PUBLIC HEARING CLOSED AND ADJOURNED TO THE REGULAR BOARD MEETING AT 6:15 P.M. Director Smith asked a question regarding the third-party inspector process. The Water Reclamation Manager responded that the third-party inspector will be brought back as a separate item at a future meeting and that a Request for Proposal will be required. Director Coats asked if the Sterling Natural Resource Center will be used as a dump station. The Water Reclamation Manager responded that it will not. A motion was made by Director Coats, seconded by Director Smith, that the Board of Directors adopt Sewer Ordinance No. 404 to update the existing ordinance to establish a Source Control/Pretreatment Program required for wastewater treatment at Sterling Natural Resources Center, as submitted. The motion was carried by the following roll call vote: Ayes: Coats, Smith, Carrillo, Goodrich Noes: None Absent: Director Morales 6 4 8 b. Consider Adoption of the 2023 Enforcement Response Plan and Resolution 2023.05 – Updating the Schedule of Water and Wastewater Rates and Charges and Certain Miscellaneous Fees, Public Hearing The General Manager/CEO stated that this is the second of three items that are needed to enable the District to meet the regulations that are required by the State to operate a wastewater treatment plant and collection system. The Water Reclamation Manager stated that following the adoption of Ordinance No. 404, the District is required to develop a mechanism to address non-compliance with the ordinance. The unique nature of the Sterling Natural Resource Center requires that the District obtain a Waste Discharge Requirement (WDR), which means that the District will be required to develop an Enhanced Source Control Program. It has been determined that an Enforcement Response Plan (ERP) is an appropriate mechanism to satisfy that requirement, which lays out the policies and procedures on how the District will address non-compliance. He stated that rates and penalties are included as part of the ERP, which are consistent with other local agencies. He reviewed the various violations that are outlined in the ERP. CHAIRMAN GOODRICH OPENED THE PUBLIC HEARING AT 6:26 P.M. Chairman Goodrich declared the public participation section of the meeting open at 6:26 p.m. No public comments received. CHAIRMAN GOODRICH ANNOUNCED THE PUBLIC HEARING CLOSED AND ADJOURNED TO THE REGULAR BOARD MEETING AT 6:27 P.M. Chairman Goodrich asked whether the penalty for non-compliance can reach a point where violator’s sewer access will get blocked. The Water Reclamation Manager stated that there are several enforcement actions before it can reach that point, which makes it a rare occurrence. Legal Counsel provided input from experience of two cases in which a violator was blocked from the sewer connection due to significant violations. A motion was made by Director Coats, seconded by Director Carrillo, that the Board of Directors: 1. Adopt 2023 Enforcement Response Plan (ERP) to establish policies and procedures to address non-conformance to the District’s Sewer Ordinance by permitted dischargers; and, 2. Adopt Resolution 2023.05 - Establishing a Schedule of Water and Wastewater Rates and Charges, and miscellaneous fees related to the provision of those services. 6 4 8 The motion was carried by the following roll call vote: Ayes: Coats, Carrillo, Smith, Goodrich Noes: None Absent: Director Morales c. Consider Adoption of the 2023 Sewer System Management Plan (SSMP) The General Manager/CEO stated that this is the final governance needed which relates to the Sewer System Management Plan. The Water Reclamation Manager stated that following the establishment of the District’s Pretreatment Program, the District needs to update the Sewer System Management Plan. An update has been requested by the Sterling Natural Resource Center permitters. He stated that SSMP’s are typically updated on a five-year cycle and that the last update was in 2019. He described what is included in the SSMP, updates made and why it is necessary. The Water Reclamation Manager responded to a question from Chairman Goodrich. He stated that flow transitions from the City of San Bernardino to the Sterling Natural Resource Center are outlined in the framework agreement. A motion was made by Director Smith, seconded by Director Coats, that the Board of Directors adopt the 2023 Sewer System Management Plan (SSMP) and replace the Overflow Emergency Response Plan with a new Spill Emergency Response Plan. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Smith Noes: None Absent: Director Morales 5.REPORTS a.Board of Directors’ Reports Director Carrillo reported on the following: March 15 he attended the City of San Bernardino City Council meeting where Mayor Tran voted in favor of AB 349; and March 20 he met with the General Manager/CEO to discuss District business and review the agenda. Director Smith reported on the following: March 14 he attended the Finance & Human Resources Committee meeting where they reviewed the Investment Policy; March 20 he attended the Association of San Bernardino County Special Districts monthly meeting; March 21 he attended the San Bernardino County Local Agency and Formation Commission meeting; and March 21 he met with the General Manager/CEO to review the agenda and discuss District business. 6 4 8 Director Coats reported on the following: March 13 he attended the Association of San Bernardino County Special Districts monthly Board meeting to discuss Association business, held election of officers and welcomed their newest board member; March 14 he attended the City of San Bernardino Water Department where they approved several Professional Services Agreements; modifications to approval of SRF Funding for 10 various pipeline replacement projects totaling 9,800 feet of pipeline; March 14 he attended the Finance and Human Resources Committee Meeting where they reviewed the Investment Policy and Pathway Education Partnership Update; March 15 he met with the General Manager/CEO to discuss District business; March 20 he attended the Association of San Bernardino County Special Districts monthly meeting where the topic discussed was Innovative and Sustainable Water Supply Solutions Supporting the Inland Empire Today and Tomorrow; March 22 he met with the General Manager/CEO to review the agenda and discussed District business; and March 22 he attended the San Bernardino Valley Municipal Water District Board meeting where they passed resolutions relating to grant funding and water rights and announced that they will buy an additional 5,000 acre-feet of water through the State Water Project under Article 21. Chairman Goodrich reported on the following: March 14 he attended the City of Highland City Council meeting; March 16 he met with the General Manager/CEO to review the agenda and discussed District business; and March 20 he attended the Association of San Bernardino County Special Districts monthly meeting where Steve Elie was the guest speaker. For information only. b.General Manager/CEO Report The General Manager/CEO announced the following: •On December 14, 2022, the Board authorized surplus equipment and vehicles. The cement mixers were sold at auction in February for $2700 and the vehicles will be sold at auction in April. We received a letter from the Highland Senior Center thanking the District for donating one vehicle to their non-profit organization. •The State DDW issued a non-compliance order for THM violations in 2016. With the completion of the GAC project at Plant 134, THM’s will be greatly reduced in the distribution system and the District can utilize more North Fork water supply. On March 16, we received a letter from DDW that we have returned to compliance. Thank you to our staff and design-build team for getting the project completed. 6 4 8 •April 6 at 11:00 a.m. the District will be holding a ribbon-cutting ceremony at Plant 134 to celebrate the newly installed Granular Activated Carbon. •On March 17th the District hosted a pop-up booth at Indian Springs High School during the school’s lunch to engage with students and provide conservation information. •Director Carrillo and the Employee Events Association donated to mountain residents affected by the recent weather events. •The District restarted the Flatland Tour on March 20. Trial tours were provided to employees, but will eventually open to the public to view District operations to have a better understanding of how water is delivered. For information only. c.Legal Counsel Report No report at this time. d.Board of Directors’ Comments Director Smith thanked staff for their presentations. Director Carrillo thanked Ms. Antrim and the Employee Events Association for their donations to the mountain communities. Director Coats stated that he is continually amazed at all of the other entities that take a tour of the SNRC. He stated that this just re-enforces what a great operation and organization the District has, with such talented employees and he is proud to be associated with such a group. Chairman Goodrich thanked staff for their work on all the items for this even’s meeting. For information only. ADJOURN Chairman Goodrich adjourned the meeting at 6:52 p.m. Phillip R. Goodrich, Board President Michael Moore, Board Secretary Agenda Item #2d April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #2d Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approval of Directors' Fees and Expenses for March 2023 RECOMMENDATION That the Board of Directors approve the Directors' Fees and Expenses for March 2023 as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT The fiscal impact associated with this agenda item is $10,570.95 which is included in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS March 2023 Director Expense Reports Name: Month / Year:2023 Meeting No.Stipend Written Oral 1 3 /01 225 2 3 /07 225 3 3 /08 225 4 3 /15 225 5 3 /20 225 6 3 /22 225 7 3 /28 225 8 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.655/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Chris Carrillo March / 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 City of San Bernardino Council Meeting Meeting with General Manager/CEO or Designee Regular Board Meeting $1,575.00 $1,575.00 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description City of San Bernardino Council Meeting Meeting with General Manager/CEO or Designee Regular Board Meeting Chamber of Commerce Event Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Met with General Manager/CEO to review agenda and discuss district business. Brief Description of Meeting/Event Value to EVWD Attended EVWD board meeting. Meeting Date:3 / 15 / 2023 Event Description:City of San Bernardino Council Meeting Brief Description of Meeting/Event Value to EVWD Attended City of San Bernardino Council Meeting via Zoom. Meeting Date:3 / 20 / 2023 Meeting Date:3 / 7 / 2023 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Meeting Date:3 / 8 / 2023 Event Description:Regular Board Meeting Met with General Manager/CEO to review agenda and discuss district business. Chris Carrillo March / 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 City of San Bernardino Council Meeting via Zoom. 3 / 1 / 2023 City of San Bernardino Council Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2023 6 7 8 9 10 Chris Carrillo March / 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 EVWD board meeting. Meeting Date:3 / 28 / 2023 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Attended Highland Chamber of Commerce Luncheon: Guest Speaker CEO Moore. Meeting Date: Meeting Date:3 / 22 / 2023 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:2023 Meeting No.Stipend Written Oral 1 3 /01 225 2 3 /02 0 3 3 /07 0 4 3 /08 225 5 3 /13 225 6 3 /14 225 7 3 /14 0 8 3 /15 225 9 3 /20 225 10 3 /22 0 11 3 /22 0 12 3 /22 225 13 3 /26 225 14 3 /27 225 15 3 /28 225 16 3 /28 0 17 18 19 20 Meetings 0.655/mi No. 1 3 / 2 3 /27 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Ronald L. Coats March / 200.00 X ( 10 ) 68.00 64.00 68.00 Report Provided Subtotal Meetings' Stipend Mileage ACWA Event Region 9 Tour ASBCSD Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Ronald L. Coats Date Meeting / Event Description San Bernardino Board of Water Commissioners Highland Chamber Event Date Meeting with General Manager/CEO or Designee San Bernardino Valley MWD Workshop Agenda Review $2,920.95 $2,250.00 $131.00 Reimbursement 22.22 Lodging 517.73 Misc. - Other Mileage Miscellaneous Reimbursement Description Agenda Review San Bernardino Valley MWD Regular Board Meeting ACWA Event Region 9 Tour Regular Board Meeting ASBCSD Board Meeting San Bernardino Board of Water Commissioners Finance & Human Resources Committee Meeting Meeting with General Manager/CEO or Designee Expense Type $539.95 Lyft fee for Sacramento Airport to Hotel February 2, 2023 Region 9 Tour DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Event Description:ASBCSD Board Meeting Brief Description of Meeting/Event Value to EVWD Held our monthly board meeting to discuss association business, held election of officers and welcomed our newest board member Rebecca Kujawa (pronounced "Kuyava") Brief Description of Meeting/Event Value to EVWD Had an agenda review meeting with Michael Moore Meeting Date:3 / 8 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Meeting Date:3 / 13 / 2023 Meeting Date:3 / 2 / 2023 Event Description:San Bernardino Valley MWD Workshop Brief Description of Meeting/Event Value to EVWD Meeting Date:3 / 7 / 2023 Event Description:Agenda Review They received a State Legislative update; approved a right-of-way application with the Bureau of Land Management for enhanced recharge project; Amendment to Riparian Bird Monitoring consulting agreement; and the annual review of the state water project. Ronald L. Coats March / 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: Held a meeting with the general manager to discuss district business 3 / 1 / 2023 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:2023 6 7 8 9 10 Ronald L. Coats March / 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. Steve Elie VP of IEUA Board of Directors and Brandon Goshi were guest speakers. Their topic was Innovative and Sustainable Water Supply Solutions Supporting the Inland Empire Today and Tomorrow Meeting Date:3 / 22 / 2023 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD Reviewed the agenda for tonight's meeting and discussed other district business Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Met with the general manager to discuss district business Meeting Date:3 / 20 / 2023 Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD They approved several Professional Services Agreements; modifications to approval of SRF Funding for 10 various pipeline replacement projects totaling 9,800 feet of pipeline. Original SRF Loan was for $3,405,990 in 2019 which has now grown to $11,234,350 because of inflation, Supply Chain and Build American Buy American. Meeting Date:3 / 14 / 2023 Event Description:Finance & Human Resources Committee Meeting Brief Description of Meeting/Event Value to EVWD Reviewed Investment Policy; Pathway Education Partnership Update; finance and human resources activities Meeting Date:3 / 15 / 2023 Meeting Date:3 / 14 / 2023 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2023 11 12 13 14 15 Ronald L. Coats March / 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 had a presentation by Valley District about the Delta Conveyance Project, Sites Reservoir Project and the status of the drought; They approved a contract for Emergency Drying Beds Lining Project for $6,716,300; and awarded several other contracts for pumps and bulk liquid ferric chloride, which has doubled in price recently. Event Description:ACWA Event Region 9 Tour Brief Description of Meeting/Event Value to EVWD Attended ACWA, Region 9 of the Salton Sea. Toured the Species Conservation Project, which will make 4,100 acres of new wetlands for the Pacific Flyway. Also toured parts of the Imperial Valley and much of the rest of the Salton Sea. A very educational event of the entire Sea. Meeting Date:3 / 28 / 2023 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Meeting Date:3 / 26 / 2023 Event Description:ACWA Event Region 9 Tour Brief Description of Meeting/Event Value to EVWD Attended ACWA, Region 9 of the Salton Sea. Toured the Species Conservation Project, which will make 4,100 acres of new wetlands for the Pacific Flyway. Also toured parts of the Imperial Valley and much of the rest of the Salton Sea. A very educational event of the entire Sea. Meeting Date:3 / 27 / 2023 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD Passed a resolution to apply for a grant of $3 million for a Habitat Restoration Project at Hidden Valley Creek; Passed a resolution to join a coalition opposing the Water Rights Bill and AB 460, AB 1337 and SB 389; They will buy an additional 5,000 acre feet of water through the State Water Project under Article 21; Lake Oroville at 82%, San Luis Reservoir at 92%; Delta Conveyance Final EIR will be done by end of Meeting Date:3 / 22 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:3 / 22 / 2023 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2023 16 17 18 19 20 Event Description: Brief Description of Meeting/Event Value to EVWD Ronald L. Coats March / 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 Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date:3 / 28 / 2023 Event Description:Highland Chamber Event Brief Description of Meeting/Event Value to EVWD Guess speaker was our own Michael Moore who spoke about the water district, the Sterling recycled water pipeline project and it expected completion date and the drought. Meeting Date: DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 5 Name: Month / Year:2023 Meeting No.Stipend Written Oral 1 3 /02 225 2 3 /08 225 3 3 /14 225 4 3 /16 225 5 3 /20 225 6 3 /22 225 7 3 /23 225 8 3 /27 225 9 3 /28 225 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.655/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval $0.00 Mileage Miscellaneous Reimbursement Description Agenda Review ASBCSD Regular Board Meeting Chamber of Commerce Event Engineering & Operations Committee Meeting Expense Type $2,025.00 $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 Date Agenda Review Regular Board Meeting City of Highland Council Meeting $2,025.00 Phillip R. Goodrich March / 0.00 X ( 9 ) Report Provided Subtotal Meetings' Stipend Mileage Chamber of Commerce Event DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Phillip R. Goodrich March / 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: Meet with both GM and vice chair for review of current agenda and discuss District affairs 3 / 2 / 2023 Agenda Review Brief Description of Meeting/Event Value to EVWD Meeting Date:3 / 8 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:3 / 14 / 2023 Event Description:City of Highland Council Meeting Attend Regular Board meeting Ref. Mins. For this day Brief Description of Meeting/Event Value to EVWD Represent District at this Monthly City Council meeting Meeting Date:3 / 16 / 2023 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD Meet with CEO and Vice chair for review of current agenda Meeting Date:3 / 20 / 2023 Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD Attend local chapter of CSDA updates from LAFCO and Met Water DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2023 6 7 8 9 10 Meeting Date:3 / 22 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend Regular board meeting Ref. Mins. This day Meeting Date:3 / 23 / 2023 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Rep. District at Chamber regional mixer Meeting Date:3 / 27 / 2023 Event Description:Engineering & Operations Committee Meeting Brief Description of Meeting/Event Value to EVWD Attend standind Eng. And ops. Committee meeting updates on those depts. Meeting Date:3 / 28 / 2023 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Attend Monthly Chamber luncheon East Valley CEO featured speaker updates on water system in this Valley Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Phillip R. Goodrich March / 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:2023 Meeting No.Stipend Written Oral 1 3 /02 225 2 3 /03 225 3 3 /07 225 4 3 /08 225 5 3 /10 225 6 3 /14 225 7 3 /16 225 8 3 /27 225 9 3 /30 225 10 3 /31 225 11 12 13 14 15 16 17 18 19 20 Meetings 0.655/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval James Morales, Jr.March / 0.00 X ( 10 ) Report Provided Subtotal Meetings' Stipend Mileage Meeting with General Manager/CEO or Designee Administration Signature I certify that the above is correct and accurate to the best of my knowledge. James Morales, Jr. Date Meeting / Event Description Date Meeting with General Manager/CEO or Designee ACWA Event ACWA Event $2,250.00 $2,250.00 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description Meeting with General Manager/CEO or Designee Regular Board Meeting East Valley Association of Realtors San Bernardino Valley MWD Meeting with General Manager/CEO or Designee Engineering & Operations Committee Meeting Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2023 1 2 3 4 5 Event Description:East Valley Association of Realtors Brief Description of Meeting/Event Value to EVWD District update, local legislative update. Board report assignment. Brief Description of Meeting/Event Value to EVWD Water rights legislative discussion. Meeting Date:3 / 8 / 2023 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:3 / 10 / 2023 Meeting Date:3 / 3 / 2023 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD Meeting Date:3 / 7 / 2023 Event Description:ACWA Event ACWA state board of directors State legislative meeting. James Morales, Jr.March / 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: District update and business operations. 3 / 2 / 2023 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:2023 6 7 8 9 10 James Morales, Jr.March / 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. Teleconference. Legislative update. Meeting Date:3 / 31 / 2023 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Legislative platform, SMBMI. Event Description:Engineering & Operations Committee Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:3 / 30 / 2023 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Engineering committee meeting. Board report assignment. Meeting Date:3 / 16 / 2023 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD District update and business operations. Meeting Date:3 / 27 / 2023 Meeting Date:3 / 14 / 2023 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Agenda Item #2e April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #2e Consent Item 7 5 0 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: February 2023 Disbursements: Accounts payable disbursements for the period include check numbers 260726 through 260872, bank drafts, and ACH payments in the amount of $9,493,280.70 and $419,736.49 for payroll RECOMMENDATION That the Board of Directors approve the District's expense disbursements for the period February 1, 2023 through February 28, 2023 in the amount of $9,913,017.19. BACKGROUND / ANALYSIS In the continued effort to be fiscally transparent, the payment register for supplies, materials, services, and payroll for February 2023 is attached for review and approval. This process provides the Board of Directors and the public an opportunity to review the expenses of the District. Accounts Payable is processed weekly, while payroll is processed bi-weekly. Information to justify each expenditure is available through the Finance Department. Accounts payable disbursements for the period include check numbers 260726 through 260872, bank drafts, and ACH Payments in the amount of $9,493,280.70 and $419,736.49, for payroll. Significant expenses greater than or equal to $50,000 are further explained below: Agenda Item #2e April 12, 20232 Meeting Date: April 12, 2023 Agenda Item #2e Consent Item 7 5 0 AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. Agenda Item #2e April 12, 20233 Meeting Date: April 12, 2023 Agenda Item #2e Consent Item 7 5 0 FISCAL IMPACT This item is funded in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS February 2023 Payment Register PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/2/2023 260726 ACS SUPPORT 26.00 2/2/2023 260727 AIR CHIEF, INC.520.85 2/2/2023 260728 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)1,126.22 2/2/2023 260729 ANAERGIA TECHNOLOGIES LLC 203,300.00 2/2/2023 260730 APPLEONE EMPLOYMENT SERVICE 2,313.05 2/2/2023 260731 AT&T 2,033.69 2/2/2023 260732 BALFOUR BEATTY INFRASTRUCTURE, INC 6,274,910.75 2/2/2023 260733 CAEATFA 40,034.03 2/2/2023 260734 CalPERS- FRAS 332,001.00 2/2/2023 260735 CHEM-TECH INTERNATIONAL INC 6,629.64 2/2/2023 260736 COLONIAL LIFE, PREMIUM 491.64 2/2/2023 260737 DIB'S SAFE & LOCK SERVICE 45.68 2/2/2023 260738 DIRECTV 258.98 2/2/2023 260739 ECOTECH SERVICES, INC 12,433.00 2/2/2023 260740 EVERSOFT, INC 569.60 2/2/2023 260741 EXPERIAN 353.44 2/2/2023 260742 FRANCHISE TAX BOARD 50.00 2/2/2023 260743 GEOSCIENCE SUPPORT SERVICES, INC 127,200.56 2/2/2023 260744 HARPER & ASSOCIATES ENGINEERING, INC 1,690.00 2/2/2023 260745 HYDROTECH ELECTRIC 21,051.00 2/2/2023 260746 INLAND WATER WORKS SUPPLY CO 61,628.13 2/2/2023 260747 K & L HARDWARE 22.34 2/2/2023 260748 METLIFE SMALL BUSINESS CENTER (Dental)11,011.14 2/2/2023 260749 METROPOLITAN LIFE INS CO 93.30 2/2/2023 260750 PACIFIC HYDROTECH CORPORATION 125,339.05 2/2/2023 260751 PETTY CASH 341.27 2/2/2023 260752 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 13,966.30 2/2/2023 260753 SO CAL GAS 3,194.31 2/2/2023 260754 SWRCB 2,524.00 2/2/2023 260755 UNIFIRST CORPORATION 592.14 2/2/2023 260756 US BANCORP SERVICE CENTER 31,434.66 2/2/2023 260761 VALLEY OFFICE EQUIPMENT 3.37 2/2/2023 260762 WATER SYSTEMS CONSULTING, INC 5,843.01 2/2/2023 260763 YARDLEY ORGILL CO. INC. YO FIRE 10,291.20 2/2/2023 260764 CELESTE KEMPKA 3,795.45 2/2/2023 260765 BRECKENRIDGE PROPERTY FUND 2016 LLC 77.27 2/2/2023 260766 ALBERT RUBALCABA 82.69 2/2/2023 260767 AMANDA LI 300.00 2/2/2023 260768 BEVERLY MCCARTHY 150.00 2/2/2023 260769 CHRISTOPHER LUTTER 150.00 2/2/2023 260770 DARLENE BARENTS 300.00 2/2/2023 260771 DAVID GRAVES 400.00 2/2/2023 260772 DENISE LINDSEY 200.00 2/2/2023 260773 DIANE COLLINS 100.00 PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 Page 1 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/2/2023 260774 DONNA GIFFORD 30.00 2/2/2023 260775 ERIC PETERS 200.00 2/2/2023 260776 HOLLY GARCIA 200.00 2/2/2023 260777 JANICE PASSMORE 179.43 2/2/2023 260778 JOSE VALENCIA 100.00 2/2/2023 260779 JOSEPH JONDREAU 200.00 2/2/2023 260780 KAREN LICHTENBERG 200.00 2/2/2023 260781 LIWAYWAY LUCILLE CASTRO 200.00 2/2/2023 260782 LUIS ROBLES 99.00 2/2/2023 260783 MARIA MENDOZA 150.00 2/2/2023 260784 NADER SHAHATIT 150.00 2/2/2023 260785 NANCY HUNT 100.00 2/2/2023 260786 NANCY SMITH 120.00 2/2/2023 260787 Oscar Medellin 150.00 2/2/2023 260788 PAUL WEGNER 200.00 2/2/2023 260789 PHYLLIS DINWIDDIE 200.00 2/2/2023 260790 RAMIRO RAMIREZ 150.00 2/2/2023 260791 RICHARD REYES 100.00 2/2/2023 260792 ROBERT CALVERT 66.13 2/2/2023 260793 SHELLEY MORGAN 178.69 2/2/2023 260794 VIVIAN CARDENAS 150.00 2/9/2023 260795 MV 18013 LLC 150.00 2/9/2023 260796 MV 18013 LLC 113.97 2/9/2023 260797 OPENDOOR LABS INC 116.31 2/9/2023 260798 D.R. HORTON 112.08 2/9/2023 260799 DMDS GROUP LLC 2,413.51 2/9/2023 260800 AMERICAN FIDELITY ASSURANCE COMPANY 3,073.43 2/9/2023 260801 APPLEONE EMPLOYMENT SERVICE 908.96 2/9/2023 260802 BUDGET TRANSMISSIONS II INC 2,854.38 2/9/2023 260803 COUTS HEATING AND COOLING, INC.760.00 2/9/2023 260804 D&H WATER SYSTEMS 2,846.07 2/9/2023 260805 Genuine Parts Company 99.16 2/9/2023 260806 INLAND WATER WORKS SUPPLY CO 7,673.02 2/9/2023 260807 LIEBERT CASSIDY WHITMORE LCW 648.00 2/9/2023 260808 LOGICALIS, INC 4,463.38 2/9/2023 260809 SOUTHERN CALIFORNIA EDISON COMPANY 311,535.85 2/9/2023 260810 SOUTHERN CALIFORNIA EMERGENCY MEDICINE/COLTON/REDLANDS 60.00 2/9/2023 260811 Texas Life Insurance Company 646.71 2/9/2023 260812 Wilson Towing LLC 100.00 2/9/2023 260813 FYAD ENTERPRISES INC 67.67 2/9/2023 260814 FAMILY HABITAT INC 135.24 2/9/2023 260815 PATRICK FRAIRE 65.09 2/9/2023 260816 ANGIE PRICE 101.81 2/15/2023 260817 ACS SUPPORT 26.00 2/15/2023 260818 FRANCHISE TAX BOARD 50.00 2/15/2023 260819 WESTBOUND COMMUNICATIONS, INC.150.00 2/16/2023 260820 AFFORDABLE AUTO SERVICE, RAHIB ELAWAR 58.00 2/16/2023 260821 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)1,126.22 2/16/2023 260822 APPLEONE EMPLOYMENT SERVICE 1,141.60 2/16/2023 260823 BURRTEC WASTE/ 5455 Industrial pkwy 722.16 2/16/2023 260824 BURRTEC WASTE/ E. 111 MILL ST 2,029.41 PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 Page 2 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/16/2023 260825 CAL VALVE-JAQUELYN ROMERO 830.00 2/16/2023 260826 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 2,912.00 2/16/2023 260827 CSMFO, CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS 125.00 2/16/2023 260828 CULLIGAN OF ONTARIO 158.43 2/16/2023 260829 DIB'S SAFE & LOCK SERVICE 12.07 2/16/2023 260830 EUCLID MANAGERS, INSURANCE SERVICES INC.360.00 2/16/2023 260831 EYE MED VISION CARE 1,505.04 2/16/2023 260832 FIRST CHOICE SERVICES 1,367.87 2/16/2023 260833 FLEET MANAGEMENT DEPARTMENT 565.05 2/16/2023 260834 INLAND DESERT SECURITY & COMMUNICATIONS, INC 900.40 2/16/2023 260835 INLAND WATER WORKS SUPPLY CO 4,540.82 2/16/2023 260836 JESSE MCCONNAHA/MACS SPRING SHOP 704.00 2/16/2023 260837 K & L HARDWARE 292.70 2/16/2023 260838 KONICA MINOLTA 1,158.04 2/16/2023 260839 POWER PLUS AUTO GLASS 461.75 2/16/2023 260840 ROSEMOUNT , INC 4,408.27 2/16/2023 260841 SOUTHERN CALIFORNIA EDISON COMPANY 21,702.71 2/16/2023 260842 SPECTRUM 6,090.00 2/16/2023 260843 UNIFIRST CORPORATION 604.56 2/16/2023 260844 US BANCORP SERVICE CENTER 30,701.66 2/16/2023 260849 VALLEY OFFICE EQUIPMENT 2.74 2/16/2023 260850 WESTERN MUNICIPAL WATER DISTRICT 750.00 2/16/2023 260851 SAN GORGONIO HIGH SCHOOL 100.00 2/17/2023 260852 KAA PROPERTIES LP #6550 268.13 2/17/2023 260853 PIC & SAVE #44303 16.80 2/17/2023 260854 O GLENN DYER 67.67 2/23/2023 260855 ANAERGIA TECHNOLOGIES LLC 130,150.00 2/23/2023 260856 APPLEONE EMPLOYMENT SERVICE 1,162.87 2/23/2023 260857 AWWA 4,660.00 2/23/2023 260858 DREW METZGER 560.00 2/23/2023 260859 ECOTECH SERVICES, INC 4,322.50 2/23/2023 260860 FedEx 149.07 2/23/2023 260861 GENOVEVA L ARELLANO 756.62 2/23/2023 260862 Genuine Parts Company 83.92 2/23/2023 260863 GEOSCIENCE SUPPORT SERVICES, INC 10,016.50 2/23/2023 260864 GLOBAL EQUIPMENT COMPANY, INC 994.93 2/23/2023 260865 INLAND WATER WORKS SUPPLY CO 2,260.60 2/23/2023 260866 K & L HARDWARE 26.88 2/23/2023 260867 PILAR ONATE 4,725.00 2/23/2023 260868 SO CAL GAS 37.20 2/23/2023 260869 SOUTH COAST AQMD 620.61 2/23/2023 260870 THE SHERWIN WILLIAMS CO.125.37 2/23/2023 260871 Wyatt's Paint & Body Shop, Inc.3,995.62 2/23/2023 260872 JALISE HART 1,500.00 BANK DRAFTS 2/2/2023 DFT0004817 GLOBAL PAYMENTS 16,020.66 2/3/2023 DFT0004805 CALPERS/ RETIREMENT 51,774.26 2/3/2023 DFT0004806 CA SDI Tax 2,708.75 2/3/2023 DFT0004808 CALPERS/ DEFERRED COMPENSATION 22,597.74 2/3/2023 DFT0004809 CALPERS/ MEDICAL 109,643.90 2/3/2023 DFT0004810 Federal Payroll Tax 33,017.37 PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 Page 3 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/3/2023 DFT0004811 Medicare 8,728.20 2/3/2023 DFT0004812 Social Security 194.92 2/3/2023 DFT0004813 State Payroll Tax 13,125.51 2/3/2023 DFT0004814 STATE DISBURSEMENT UNIT 322.15 2/3/2023 DFT0004818 MERCHANT BANKCD 447.82 2/10/2023 DFT0004819 PayNearMe, Inc.254.72 2/10/2023 DFT0004828 FORTE, ACH DIRECT INC, ACH FEES 5,099.76 2/17/2023 DFT0004820 CALPERS/ DEFERRED COMPENSATION 22,361.27 2/17/2023 DFT0004821 CALPERS/ RETIREMENT 51,411.37 2/17/2023 DFT0004822 CA SDI Tax 2,791.05 2/17/2023 DFT0004823 Federal Payroll Tax 32,704.46 2/17/2023 DFT0004824 Medicare 9,010.54 2/17/2023 DFT0004825 Social Security 1,406.96 2/17/2023 DFT0004826 STATE DISBURSEMENT UNIT 908.77 2/17/2023 DFT0004827 State Payroll Tax 12,621.24 2/21/2023 DFT0004829 PayNearMe, Inc.254.72 2/22/2023 DFT0004830 CBB 257.34 2/28/2023 DFT0004832 PayNearMe, Inc.167.16 ACH PAYMENTS 2/2/2023 10012020 ACI PAYMENTS INC.51.75 2/2/2023 10012021 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.15,125.01 2/2/2023 10012022 ALBERT A. WEBB ASSOCIATES 35,986.75 2/2/2023 10012023 ALLISON MECHANICAL, INC 6,795.00 2/2/2023 10012024 AMAZON CAPITAL SERVICES, INC 2,111.97 2/2/2023 10012026 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 1,106.79 2/2/2023 10012027 BARRY'S SECURITY SERVICES, INC 9,372.18 2/2/2023 10012028 CALIFORNIA TOOL & WELDING SUPPLY 546.99 2/2/2023 10012029 CHEMSEARCH 422.33 2/2/2023 10012030 COMPUTERIZED EMBROIDERY COMPANY, INC 115.62 2/2/2023 10012031 CORE & MAIN LP 10,025.75 2/2/2023 10012032 DANGELO CO INC 1,702.97 2/2/2023 10012033 EVWD EMPLOYEES EVENTS ASSOC 280.50 2/2/2023 10012034 EXCEL LANDSCAPE, INC 21,284.50 2/2/2023 10012035 EZEQUIEL ELECTRIC, INC.2,865.37 2/2/2023 10012036 FIELDMAN, ROLAPP & ASSOCIATES, INC 1,500.00 2/2/2023 10012037 FRONTIER COMMUNICATIONS 825.38 2/2/2023 10012038 GENESIS INDUSTRIAL SUPPLY, INC 3,956.97 2/2/2023 10012039 GRAINGER 2,021.02 2/2/2023 10012040 GROUP DELTA CONSULTANTS, INC 121,141.88 2/2/2023 10012042 HACH COMPANY 11,475.00 2/2/2023 10012043 HARRINGTON INDUSTRIAL PLASTIC 464.83 2/2/2023 10012044 INDUSTRIAL RUBBER & SUPPLY 670.54 2/2/2023 10012045 INFOSEND, INC 111,820.16 2/2/2023 10012047 KRIEGER & STEWART, INCORPORATED 23,895.39 2/2/2023 10012048 LEVERAGE INFORMATION SYSTEMS, INC.4,947.94 2/2/2023 10012049 LINCOLN NATIONAL LIFE INS CO.2,428.83 2/2/2023 10012050 MCMASTER-CARR 321.52 2/2/2023 10012051 MINUTEMAN PRESS OF RANCHO CUCAMONGA 2,103.27 2/2/2023 10012052 NATIONAL CONSTRUCTION RENTALS 178.49 2/2/2023 10012053 PARKHOUSE TIRE, INC 1,824.95 2/2/2023 10012054 PLUS 1 PERFORMANCE 34.25 PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 Page 4 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/2/2023 10012055 QUADIENT, INC 407.62 2/2/2023 10012056 QUINN COMPANY 610.44 2/2/2023 10012057 RK VENTURE LLC 4,287.50 2/2/2023 10012058 SAFETY KLEEN SYSTEMS, INC.359.67 2/2/2023 10012059 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT 300,000.00 2/2/2023 10012060 SCN, SECURITY COMMUNICATION NETWORK, INC 105.00 2/2/2023 10012061 STAPLES BUSINESS ADVANTAGE 1,448.82 2/2/2023 10012064 TOTAL SAFETY SUPPLIES & SOLUTIONS 1,076.03 2/2/2023 10012065 TYLER TECHNOLOGIES, INC 1,445.09 2/2/2023 10012067 VULCAN MATERIALS CO/ CALMAT CO 8,349.58 2/2/2023 10012068 WAXIE SANITARY SUPPLY 476.69 2/2/2023 10012069 WESTBROOK FENCE, INC 1,900.00 2/9/2023 10012070 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.750.00 2/9/2023 10012071 AMAZON CAPITAL SERVICES, INC 1,027.03 2/9/2023 10012072 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 1,228.14 2/9/2023 10012073 BARRY'S SECURITY SERVICES, INC 9,270.69 2/9/2023 10012074 BOOT BARN, INC 800.00 2/9/2023 10012075 CINTAS CORPORATION (FIRST AID)911.45 2/9/2023 10012076 CLEARFLY COMMUNATIONS 967.10 2/9/2023 10012077 CLINICAL LAB OF S B 5,025.00 2/9/2023 10012078 CORELOGIC SOLUTIONS, LLC 380.63 2/9/2023 10012079 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 100.00 2/9/2023 10012080 DALE BRENDT MARSDEN, dba TOMORROW'S TALENT, LLC 2,500.00 2/9/2023 10012081 FRONTIER COMMUNICATIONS 82.74 2/9/2023 10012082 GOLDEN STATE LABOR COMPLIANCE, LLC 4,990.00 2/9/2023 10012083 JOSE MILLAN 140.00 2/9/2023 10012084 KELLAR CONSULTING, LLC 15,000.00 2/9/2023 10012085 LEGEND PUMP AND WELL SERVICES 3,696.65 2/9/2023 10012086 LESLIE'S POOL SUPPLIES, INC.69.59 2/9/2023 10012087 MANAGED HEALTH NETWORK 228.48 2/9/2023 10012088 MCMASTER-CARR 185.69 2/9/2023 10012089 MIKE J. ROQUET CONSTRUCTION INC 26,055.86 2/9/2023 10012090 MINUTEMAN PRESS OF RANCHO CUCAMONGA 935.98 2/9/2023 10012091 MissionSquare Retirement 250.00 2/9/2023 10012092 MOBILE OCCUPATIONAL SERVICES, INC 360.00 2/9/2023 10012093 PLUMBERS DEPOT INC.3,329.90 2/9/2023 10012094 PLUS 1 PERFORMANCE 2,153.71 2/9/2023 10012095 QUADIENT, INC 264.00 2/9/2023 10012096 SG CREATIVE, LLC 6,050.00 2/9/2023 10012097 SSCI, INC. DBA-SAFETY COMPLIANCE COMPANY 800.00 2/9/2023 10012098 STAPLES BUSINESS ADVANTAGE 624.51 2/9/2023 10012100 STEVE A. FILARSKY, ATTORNEY AT LAW 612.50 2/9/2023 10012101 UNDERGROUND SERVICE ALERT 288.25 2/9/2023 10012102 VALERO FLEET, WEX BANK 14,856.17 2/9/2023 10012103 VIRTUAL GRAFFITI, INC.14,400.00 2/9/2023 10012104 Water On Wheels Mobile Detail 53.00 2/15/2023 10012105 CAROL CALES 555.99 2/15/2023 10012106 DANIEL DAVIS 663.92 2/15/2023 10012107 DAVID HERNANDEZ 505.94 2/15/2023 10012108 ED KING 850.00 2/15/2023 10012109 ELISEO OCHOA 562.73 2/15/2023 10012110 EVWD EMPLOYEES EVENTS ASSOC 378.50 PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 Page 5 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/15/2023 10012111 JOHN MURA 730.10 2/15/2023 10012112 MARTHA T DURAN 850.00 2/15/2023 10012113 MICHAEL HENDERSON 737.18 2/15/2023 10012114 REBECCA KASTEN 639.46 2/15/2023 10012115 RICHARD BECERRA 737.18 2/16/2023 10012152 MINUTEMAN PRESS OF RANCHO CUCAMONGA 494.55 2/16/2023 10012153 ADCOMP SYSTEMS, INC 100.00 2/16/2023 10012154 AMAZON CAPITAL SERVICES, INC 790.24 2/16/2023 10012156 AMERICAN RENTALS, INC 3,087.50 2/16/2023 10012157 ANTHESIS 9,593.88 2/16/2023 10012158 ASBCSD 108.00 2/16/2023 10012159 BARRY'S SECURITY SERVICES, INC 9,275.87 2/16/2023 10012160 BURGESS MOVING & STORAGE 1,233.30 2/16/2023 10012161 CINTAS CORPORATION (FIRST AID)468.44 2/16/2023 10012162 CLARK PEST CONTROL 51.00 2/16/2023 10012163 CLA-VAL CO 9,176.83 2/16/2023 10012164 ELEPHANT FIRE EXTINSUISHER 1,291.13 2/16/2023 10012165 FERGUSON ENTERPRISES, INC.4,157.80 2/16/2023 10012166 FIELDMAN, ROLAPP & ASSOCIATES, INC 1,250.00 2/16/2023 10012167 FMB TRUCK OUTFITTERS, INC 2,372.63 2/16/2023 10012168 FRONTIER COMMUNICATIONS 1,494.40 2/16/2023 10012169 HARRINGTON INDUSTRIAL PLASTIC 417.94 2/16/2023 10012170 INFOSEND, INC 659.00 2/16/2023 10012171 LANDS END INC 253.42 2/16/2023 10012172 MANAGED MOBILE, INC.2,366.76 2/16/2023 10012173 MINUTEMAN PRESS OF RANCHO CUCAMONGA 6,323.09 2/16/2023 10012174 NATIONAL CONSTRUCTION RENTALS 178.49 2/16/2023 10012175 PARKHOUSE TIRE, INC 246.81 2/16/2023 10012176 POWERSTRIDE BATTERY CO.498.94 2/16/2023 10012177 QUADIENT, INC 1,974.90 2/16/2023 10012178 RESOLUTE 4,200.00 2/16/2023 10012179 STAPLES BUSINESS ADVANTAGE 135.98 2/16/2023 10012180 STERICYCLE, INC DBA SHRED-IT 554.42 2/16/2023 10012181 SYRINIX, INC.876.37 2/16/2023 10012182 Troy A. Yergens 250.00 2/16/2023 10012183 USA BLUE BOOK, HD SUPPLY FACILITIES MAINT, LTD 1,384.92 2/16/2023 10012184 VISTA PAINTS 617.84 2/16/2023 10012185 VULCAN MATERIALS CO/ CALMAT CO 5,590.21 2/16/2023 10012186 Water On Wheels Mobile Detail 609.50 2/16/2023 10012187 WAXIE SANITARY SUPPLY 72.54 2/16/2023 10012188 WESTBROOK FENCE, INC 64,293.00 2/23/2023 10012153-1 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.4,800.00 2/23/2023 10012154-1 AMAZON CAPITAL SERVICES, INC 1,358.00 2/23/2023 10012156-1 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 108.47 2/23/2023 10012157-1 BARRY'S SECURITY SERVICES, INC 8,084.76 2/23/2023 10012158-1 CALIFORNIA TOOL & WELDING SUPPLY 979.95 2/23/2023 10012159-1 CLARK PEST CONTROL 303.00 2/23/2023 10012160-1 CORE & MAIN LP 60,851.61 2/23/2023 10012161-1 DANGELO CO INC 559.25 2/23/2023 10012162-1 EXCEL LANDSCAPE, INC 278.46 2/23/2023 10012163-1 FERGUSON ENTERPRISES, INC.10,892.02 2/23/2023 10012164-1 FMB TRUCK OUTFITTERS, INC 2,372.63 PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 Page 6 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 2/23/2023 10012165-1 GENESIS INDUSTRIAL SUPPLY, INC 485.59 2/23/2023 10012166-1 GRAINGER 188.11 2/23/2023 10012167-1 INFOSEND, INC 40,599.82 2/23/2023 10012168-1 JC LAW FIRM 19,837.00 2/23/2023 10012169-1 Jeffrey Ordaz 1,300.00 2/23/2023 10012170-1 JOSE MILLAN 3,890.00 2/23/2023 10012171-1 JOSE TORRES 349.98 2/23/2023 10012172-1 KRIEGER & STEWART, INCORPORATED 60,902.32 2/23/2023 10012173-1 MANAGED MOBILE, INC.2,613.95 2/23/2023 10012174-1 MCCRAY ENTERPRISES 324.75 2/23/2023 10012175-1 MINUTEMAN PRESS OF RANCHO CUCAMONGA 1,127.57 2/23/2023 10012176-1 Water On Wheels Mobile Detail 265.00 2/23/2023 10012177-1 WILLIAM RINGLAND 56.27 TOTAL 9,493,280.70$ PAYMENT REGISTER FEBRUARY 1, 2023 - FEBRUARY 28, 2023 Page 7 of 7 Agenda Item #2f April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #2f Consent Item 7 5 2 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Adopt Resolution 2023.06 - Investment Policy RECOMMENDATION That the Board of Directors adopt Resolution 2023.06 - Investment Policy. BACKGROUND / ANALYSIS The Finance and Human Resources Committee recommended, at their March 14, 2023 meeting, that the Board of Directors (Board) adopt Resolution 2023.06 – Investment Policy. California Government Code section 53646(a) requires that the CFO/Treasurer of a local agency annually render to the legislative body a Statement of Investment Policy for consideration at a public meeting. Accordingly, a proposed Statement of Investment Policy for fiscal year 2023-24 is attached. The proposed policy is very close to the version that was approved by the Board on April 27, 2022 – there have been just minor modifications including: 1) a change to the acronym referring to the District’s annual financial report (ACFR) to comply with industry standards, and 2) clean-up of the Glossary of Terms to remove terms that are not referenced anywhere in the policy. Staff recommends adoption of Resolution 2023.06 and updated Policy 7.6 including the changes referenced above and redlined in the attached policy. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department and Finance and Human Resources Committee. Agenda Item #2f April 12, 20232 Meeting Date: April 12, 2023 Agenda Item #2f Consent Item 7 5 2 FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Resolution 2023.06 2. Exhibit A - Statement of Investment Policy 7.6 East Valley Water District Resolution 2023.06 Page 1 of 2 RESOLUTION NO. 2023.06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING AN INVESTMENT POLICY FOR PUBLIC FUNDS WHEREAS, the Board of Directors of the East Valley Water District (the “District”) desires to maintain a formal policy regarding the investment of public funds pursuant to the requirements of Government Code Sections 5921 and 53600 et seq.; and WHEREAS, the Board of Directors of the District has employed qualified staff to invest those funds in accordance with the law and the terms of the District’s investment policy , as well as in a manner that advances the District’s investment objectives of safety, liquidity and yield; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District that the East Valley Water District Investment Policy attached hereto as Exhibit “A” and incorporated in full herein by this reference is hereby adopted as the formal investment policy of the District; and BE IF FURTHER RESOLVED that the General Manager/CEO and the Treasurer/Chief Financial Officer of the District are hereby authorized and directed to invest the District’s funds in a manner consistent with the terms hereof and in accordance with any further directions of the District’s Board of Directors; and BE IT FURTHER RESOLVED that this Resolution supersedes Resolution No. 2022.05 adopted by the Board of Directors of the District on April 27, 2022. This Resolution shall take effect on July 1, 2023. ADOPTED this 12th day of April 2023. ROLL CALL: Ayes: Noes: Absent: Abstain: Phillip R. Goodrich, Board President East Valley Water District Resolution 2023.06 Page 2 of 2 ATTEST: Michael Moore, Secretary, Board of Directors April 12, 2023 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2023.06 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held April 12, 2023. Michael Moore, Secretary, Board of Directors EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 1 of 15 Purpose The purpose of this policy is to establish guidelines for the prudent investment of East Valley Water District (District) funds in conformance with California Government Code requirements. Funds will be managed to provide for daily cash flow requirements and to meet the objectives of this policy. Policy It is the policy of the District to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating needs, achieving a reasonable rate of return, and conforming to all state and local statutes governing the investment of public funds. Scope This policy applies to the investment of all operating funds; it does not apply to investments held in trust for the District retirement plan, or post-employment health benefits, as these investments are subject to policies established by the plan trustees. Indenture agreements specify how bond proceeds will be invested, but generally they will be invested in securities permitted by this policy. Invested funds are accounted for, and are identified in, the District’s Comprehensive Annual Comprehensive Financial Report. Objectives As specified in CGC §53600.5, when investing and managing public funds, the primary objectives, in priority order, of the District’s investment activities shall be: 1.Safety: Safety of principal is the foremost objective of the investment program. Investments of the East Valley Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by mitigating certain risks. Some of those risks are: A.Interest Rate Risk – the District will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by: Exhibit A EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 2 of 15 Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operation and avoiding the need to sell securities on the open market prior to maturity. Investing operating funds primarily in short-term securities, money market mutual funds, or investment pools. B.Credit Risk – the risk that an issuer or other counterparty to an investment will not fulfill its obligations, will be reduced by: Limiting investments to higher rated securities as further described in this policy. Diversifying the investment portfolio so that potential losses on individual securities will be reduced. 2.Liquidity: The investment portfolio will remain sufficiently liquid to enable the East Valley Water District to meet all operating requirements that might be reasonably anticipated. 3.Return on Investments: The investment portfolio shall be designed with the objective of attaining the best yield or returns on investments, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives. Prudence The standard of prudence to be used by District officials involved in the investment program shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. The meaning of the standard of prudent investor is explained in CGC Section 53600.3, which states that “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 3 of 15      character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” The CFO/Treasurer and delegated investment officers, acting in accordance with written procedures and this Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Delegation of Authority The authority of the District’s Board of Directors to invest District funds is derived from California Government Code (CGC) section 53601. Section 53607 of the CGC grants the Board the authority to delegate that authority to the District’s Chief Financial Officer (CFO)/Treasurer. The authority to invest District funds is hereby delegated to the CFO/Treasurer. The CFO/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials in the absence of the Treasurer. All transactions will be reviewed by the Treasurer on a regular basis to ensure compliance with this Policy. No Person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the Treasurer. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the District’s General Manager/CEO any material financial interest in financial institutions that conduct business within the District, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the District. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 4 of 15      All bond issue participants, including but not limited to, underwriters, bond counsel, financial advisors, brokers, and dealers will disclose any fee sharing arrangements or fee splitting to the CFO/Treasurer prior to the execution of any transaction. Authorized Broker-Dealers The CFO/Treasurer will maintain a list of approved financial institutions authorized to provide investment services to the District. These may include primary dealers authorized to buy and sell government securities in direct dealings with the Federal Reserve Bank of New York, or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule). The list of approved financial institutions will be reviewed by the CFO/Treasurer on an annual basis. All Broker Dealers who desire to conduct investment transactions with the District must supply the CFO/Treasurer with the following:  Audited Financial Statements  Proof of Financial Industry Regulatory Authority (FINRA) certification  Proof of State of California registration  Completed broker/dealer questionnaire (except Certificate of Deposit counterparties)  Certification of having read the District’s investment policy and depository contracts Authorized and Suitable Investments The East Valley Water District as empowered by California Government Code (CGC) §53600, et. Seq., establishes the following as authorized investments: A. Local Agency Investment Fund (LAIF). The District may invest in the Local Agency Investment Fund established by the State Treasurer for the benefit of local agencies (CGC §16429.1). The fund must have 24-hour liquidity. There is no limitation on the percentage of the District portfolio that may be invested with LAIF, however, LAIF does impose a maximum deposit of $75 million. B. United States Treasury Securities. United States Treasury notes, bonds, or bills for which the full faith and credit of the United States is pledged for the payment of principal and interest (CGC §53601(b)). There is no limitation as to the percentage of EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 5 of 15      the District’s portfolio that may be invested in these securities, however, maximum investment maturities are limited to five years from the date of purchase. C. Federal Agency Obligations. The District is permitted to invest in federal agency or United States government sponsored enterprise obligations, participations, mortgage backed securities or other instruments, including those issued by or fully guaranteed as to principal and interest by Federal agencies or United States government sponsored enterprises (CGC §53601(f)). Maximum maturity is limited to five years from the date of purchase. There is no limitation as to the percentage of the District’s portfolio that may be invested in agencies. D. Bank Depository Accounts. The District may invest in insured or collateralized certificates of deposit, savings accounts, market rate accounts, or other bank deposits issued by a state or national bank, savings and loan associations, or state or federal credit unions located in California (CGC §53630 et. Seq.). A written depository contract is required with all institutions that hold District deposits requiring that deposits be collateralized in accordance with the CGC. Under provisions of the Code, California banks and savings and loan associations are required to secure the District’s deposits by pledging government securities with a value of 110% principal and accrued interest. State law also allows financial institutions to secure the District deposits by pledging first trust deed mortgage notes having a value of 150% of the District’s total deposits. The Treasurer may waive collateral requirement for the portion of any deposit insured pursuant to federal law. Securities placed in a collateral pool must provide coverage for at least 110% of all deposits that are placed in the institution. Acceptable pooled collateral is governed by CGC §53651. Real estate mortgages are not considered acceptable collateral by the District, even though they are permitted in CGC §53651(m). All financial institutions holding District deposits are required to provide the District with a regular statement of pooled collateral. This report will state that they are meeting the 110% collateral rule, a listing of all collateral with location and market value, plus an accountability of the total amount of deposits secured by the pool. Deposits are allowable in any institution that insures its deposits with the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), and a maximum deposit of up to the federal insurance limits may be deposited in any one institution without collateral. No bank shall receive District EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 6 of 15      deposits in excess of the federal insurance limits that has a long-term debt rating by Moody’s investors Service, Standard & Poor’s, or Fitch Ratings of less that ‘A’. The maximum maturity is restricted to three years. In accordance with CGC §53638, no deposit shall exceed the shareholder’s equity of any depository bank, nor shall a deposit exceed the total net worth of any institution. No deposits shall be made at a state or federal credit union if a member of the Board of Directors or the General Manager/CEO or CFO/Treasurer of the District serves on the Board of Directors or a committee of the credit union. E. Municipal Securities. Registered treasury notes or bonds issued by the State of California or any of the other 49 states, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any states (CGC §53601 (c)(d)). Bonds, notes, or other evidence of debt issued by a local agency within the State of California, including issues by East Valley Water District if allowed under the bond indenture. This includes bonds payable solely out of revenue form a revenue- producing property owned, controlled, or operated by the local agency, or by an authority of the local agency (CGC §53601 (a)(e)). Securities must have a debt rating of at least ‘AA’ by a Nationally Recognized Statistical Rating Organization (NRSRO). Maximum maturity is limited to five years from the date of purchase, and holdings of this type of security are limited to a maximum of 20% of the District’s investment portfolio. F. Commercial Paper. Commercial paper of ‘prime’ quality of the highest ranking of the highest letter and number rating as provided for by a NRSRO and must be issued only by general corporations that are organized and operating within the United States and have total assets in excess of $500 million. The general corporation must have an ‘A’ rating or better on debt other than commercial paper, if any, assigned by an NRSRO (CGC §53601(h)). Purchases shall not exceed 5% of the outstanding paper of the issuing corporation, and maximum maturity is restricted to 270 days. This type of investment shall not exceed 15% of the District’s investment portfolio. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 7 of 15      G. Placement Service Deposits. The District may invest in Certificates of Deposit placed with a private sector entity that assists in the placement of deposits with eligible financial institutions located in the United States (CGC §53601.8). The full amount of the principal and the interest that may be accrued during the maximum term of each deposit shall at all times be insured by federal deposit insurance. Placement Service Deposits, in combination with bank certificates of deposit shall not exceed 25% of the value of the District’s investments at any time. The maximum investment maturity will be restricted to three years. H. Medium Term Notes. The District may invest in corporate and depository institution debt securities issued by corporations organized and operating within the United States, or by depository institutions licensed by the United States or any state and operating within the United States (CGC §53601(k)). Securities eligible for investment under this section shall be rated ‘AA’ or better by an NRSRO. The maximum maturity is restricted to five years, and investment in this category of security shall not exceed 30% of the District’s investible funds, and not more than 5% from a single issuer. I. Money Market Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission (CGC §53601(l)(2)). The Company shall either 1) have attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs or 2) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). A maximum of 15% of the District’s investible funds can be invested in Money Market Mutual funds. J. Local Government Investment Pools. Shares of beneficial interest in an investment pool created by a joint powers authority organized pursuant to CGC §6509.7 and that invest in securities and obligations authorized in the California Government Code (CGC §53601(p)). Investment is limited to pools that seek to maintain a stable Net Asset Value (NAV) and must be rated at least ‘AA’ or better by a NRSRO. A maximum of 25% of the District’s portfolio may be invested in Local EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 8 of 15      Government Investment Pools. K. Prohibited Investments. Under the provision of CGC §53601.6 and §53631.5, the District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity. Notwithstanding the prohibition above, the District may invest in securities issued by, or backed by, the United States government that could result in zero or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates (CA SB 998). Review of Investment Portfolio The securities held by East Valley Water District must be in compliance with the above section ‘Authorized and Suitable Investments’ at the time of purchase. If a security falls out of compliance with this section subsequent to the date of purchase, the CFO/Treasurer shall report this change to the District’s Board of Directors with the following monthly Investment Transaction report. Discussion in the monthly report will include the reasons for the change, prognosis for recovery, and a recommended course of action. Investment Pools / Mutual Funds When the District’s investment portfolio includes Investment Pools and Mutual Funds, as permitted in the section ‘Authorized and Suitable Investments’, the CFO/Treasurer shall as a matter of due diligence, monitor the assets held by the pools/funds. At least quarterly, the CFO/Treasurer will conduct an investigation to determine the following: 1. A description of eligible investment securities, and a written statement of investment policy and objectives. 2. A description of interest calculation and how it is distributed, and how gains and losses are treated. 3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 9 of 15      4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed. 5. A schedule for receiving statements and portfolio listings. 6. Are reserves, retained earnings, etc. utilized by the pool/fund? 7. A fee schedule, and when and how it is assessed. 8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? Safekeeping and Custody Agreements To protect against potential losses caused by collapse of individual securities dealers, all securities owned by the East Valley Water District shall be kept in safekeeping by a third- party bank trust department, acting as agent for the District under the terms of a custody agreement executed by the bank and the District. All securities will be received and delivered using standard delivery versus payment (DVP) procedures with the District’s custodial bank, and evidenced by safekeeping receipts. Diversification and Maximum Maturities The District will diversify its investment by security type and institution. With the exception of the US Government, its agencies and instrumentalities, and the Local Agency Investment Fund, no more than 5% of the District’s total investment portfolio will be invested in a single security type with a single financial institution. To the extent possible, East Valley Water District will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the District will not directly invest in securities maturing more than 5 years from the date of purchase. Reserve funds may be invested in securities exceeding 5 years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. Internal Controls The CFO/Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft, or EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 10 of 15      misuse. The internal control structures shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall be in writing and shall address the following: separation of transaction authority from accounting and record keeping, safekeeping of assets and written confirmation of telephone transactions for investments and wire transfers. The external auditors will annually review the investments and general activities associated with the investment program. This review will provide internal control by assuring compliance with the Investment Policy and District policies and procedures. Performance Standards The investment portfolio will be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints, and the cash flow needs. The District’s investment strategy is passive. The performance of the District’s investment portfolio will be evaluated and compared to an appropriate benchmark in order to assess the success of the investment portfolio relative to the District’s Safety, Liquidity, and Return on Investments’ objectives. Investment Reporting In accordance with California Government Code §53607, the CFO/Treasurer will submit a monthly report to the Board of Directors showing all investment transactions occurring in the previous month. Further, in accordance with California Government Code §53646, the CFO/Treasurer will also prepare a quarterly Investment Report and render the report to the Board of Directors no later than 30 days after the close of each calendar quarter. The report shall provide the type of investment, issuers, the date of maturity, par values and market values of each investment, transactions occurring during the reporting period, and identification of funds managed by third party managers. The report will also include 1) certification that all investment transactions have been made in compliance with the District’s Investment Policy, and 2) a statement that the District has the ability to meet all of its expenditure requirements during the next six months. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 11 of 15      Policy Adoption Adoption. This policy shall be reviewed annually with the Board of Directors and adopted by Board Resolution. Amendments. Any changes to the policy, or persons charged with maintaining internal controls over investments, must be approved by the Board. Glossary of Terms (Note: All words of a technical nature should be included. Following is an example of common treasury terminology.) Agencies: Federal agency securities and/or Government-sponsored enterprises. Benchmark: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. Broker: A broker brings buyers and sellers together for a commission. Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CDs are typically negotiable. Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. Comprehensive Annual Comprehensive Financial Report (CAFRACFR): The official annual report of the (East Valley Water District). It includes four combined financial statements prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance- related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. Coupon: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 12 of 15      Delivery versus Payment (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. Derivatives: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities, or commodities). Discount: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. Diversification: A Dividing investment funds among a variety of securities offering independent returns. Duration: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. Federal Credit Agencies: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals (e.g., S & L’s, small business firms, students, farmers, farm cooperatives, and exporters). Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity. Federal Funds Rate: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. Federal Home Loan Banks (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 13 of 15      Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. Liquidity: A liquidity asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. Local Government Investment Pool (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. Market Value: The price at which a security is trading and could presumably be purchased or sold. Maturity: The date upon which the principal or stated value of an investment becomes due and payable. Money Market: The marker in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. Offer: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. Portfolio: Collection of securities held by an investor. Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms. “Prudent Investor” Standard: A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 14 of 15      Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution. Securities & and Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation. Sec Rule 15(C)3-1: See Uniform Net Capital Rule. Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. Treasury Bonds: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. Yield: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Investment Policy Original Approval Date: July 22, 2015 Last Revised: April 27, 2022 Policy No: 7.6 Page 15 of 15      Revised 4/27/16 Revised 4/12/17 Revised 4/25/18 Revised 4/24/19 Revised 5/13/20 Revised 3/24/21 Agenda Item #3a April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #3a Informational Item 7 4 9 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: FY 2023-24 Program Goals and Objectives Workshop RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS East Valley Water District is a performance-based organization, focused on achievement of goals derived from the Strategic Plan and Five-Year Work Plan adopted by the Board of Directors (Board). The Five-Year Work Plan is the framework of long-term goals related to District infrastructure improvements, operations, administration, and community engagement. Each year the Five-Year Plan is referenced to develop an annual work plan for the upcoming fiscal year. With the fiscal year 2023-24 annual work plan as guidance, Program Managers and staff have been working for the last six weeks on development of Program Goals and Objectives. Each of the Objectives either directly support the annual work plan for the upcoming year or are designed to enhance the effectiveness and/or efficiency of service delivery to District ratepayers. In addition, staff remained cognizant of the following key considerations that could have an impact on operations and the way the District delivers services to ratepayers: •Rates & Reserves •Funding •Staffing Plan / Retirements •Inflation / Supply Chain Delays •Commissioning of the Sterling Natural Resource Center (SNRC) •Water Supply and Quality This year, Program Managers are pleased to present their Goals and Objectives to the Board and to answer questions. Agenda Item #3a April 12, 20232 Meeting Date: April 12, 2023 Agenda Item #3a Informational Item 7 4 9 AGENCY GOALS AND OBJECTIVES I - Implement Effective Solutions Through Visionary Leadership D. Encourage Performance Based Results through Staff Empowerment II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by all Departments and will be presented to the Finance and Human Resources Committee. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Program goals and objectives will be used to support funding requests submitted in the proposed 2023-24 fiscal year budget, which will be submitted for Board review at a future workshop. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Presentation Brian Tompkins, Chief Financial Officer GOALS & OBJECTIVES FY 2023-24 April 12, 2023 2 DEVELOPMENT OF PERFORMANCE MEASURES 3 I.Implement Effective Solutions •Facility Alternative Energy Resources •Succession Planning / Recruitment II.Sustainability, Transparency, and Accountability •Pension Unfunded Actuarial Liability •Document Management III.Embrace Continuous Growth •Water Reservoir Rehabilitation Program •Water Main Replacement Program IV.Preserve District Resources •Update Strategic Plan •Water Reclamation Operations 4 ORGANIZATIONAL PRIORITY HIGHLIGHTS 5 KEY CONSIDERATIONS •Rates & Reserves •Funding •Staffing Plan / Retirements •Inflation / Supply Chain Delays •Commissioning of the Sterling Natural Resource Center (SNRC) •Water Supply and Quality PROGRAM SUMMARIES 6 7 GOVERNING BOARD The legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. Governing Board members are responsible for providing leadership, direction, and serving as the organizational policy makers. Board Chairman Vice-Chairman Board Member (3) Total Employees: 5 ACCOMPLISHMENTS Provided Organizational Direction and Set Expectations through Policy Decisions Consistent with the Five-Year Work Plan •Completed professional recruitment campaign for a new General Manager/CEO •Approved Administrative Policy 2.4 – Telework Policy •Conducted the General Manager/CEO annual evaluation, including establishment of FY 2023-24 Goals Addressed Policy Decisions Related to the SNRC •Approved the Balfour Beatty contract amendment •Participated in the soft opening for the SNRC Administrative building and Weaver Basin groundbreaking ceremony Conducted All Activities Required for the Board of Directors Election •Coordinated with the San Bernardino County Registrar of Voters to hold the 2022 elections •Updated and posted electoral information on the District’s website, in accordance with statutory requirements •Reviewed and updated the Candidate Orientation Program 8 GOALS & OBJECTIVES •Consider actions to acquire outstanding shares of the North Fork Water Company •Consider City Creek Mutual Water Company dissolution •Convene a City Creek Mutual Water Company Board Meeting to update officers •Conduct General Manager/CEO annual evaluation •Engage in a strategic planning session to establish District goals and objectives Provide Organizational Direction and Set Expectations through Policy Decisions Consistent with the Five-Year Work Plan •Consider agenda items related to project completion and commencement of the SNRC •Participate in activities that encourage community engagement for the SNRC Address Policy Decisions Related to the SNRC •Evaluate and develop a legislative platform •Engage with legislators to promote the legislative platform •Engage community of strategic plan and goals and objectives Engage Elected Officials and Community on the District’s Strategic Priorities and Legislative Priorities 9 10 GENERAL ADMINISTRATION Ensures the District’s business and daily operation activities are performed following federal, state, and District Board-approved policies. The General Manager provides daily oversight for interagency relations for advancing the District’s initiatives, implements strategic planning for future operations and capital improvement funding requirements, and resource allocation. Administration is responsible for: •Implementing the District’s Vision •Maintaining Official Records •Promoting Public Trust and Ensuring Transparency Compliance Total Employees: 3 General Manager / CEO District Clerk Administrative Specialist Completed Consolidation / Dissolution of North Fork Water Company (NFWC) •Entered eminent domain proceedings to acquire remaining nine shares of NFWC, not owned by the District •Maintained NFWC annual compliance review Developed Document Management Process •Developed naming convention for efficient document retrieval •Began process for scanning vital documents and incorporating them into the electronic document repository •Completed training for Customer Service and Finance on document repository systems •Initiated destruction of 800 boxes in compliance with the Records Retention Policy Developed District Clerk Handbook •Evaluated and identified best practices to be included in the new Handbook •Coordinated with relevant staff and incorporated comments and suggestions into the Handbook •Prepared a draft Handbook Community Heritage Education Foundation (CHEF) •Held a Committee Meeting to discuss long-term action priorities •General Manager/CEO held an annual Board Meeting to discuss operations, financials, and a donation policy 11 ACCOMPLISHMENTS •Continue with eminent domain proceedings until court ruling is issued •Perform annual review of prior NFWC shareholders’ water allocation agreement with East Valley Water District •Consult with legal counsel to determine how the NFWC will operate in the future •Work with legal counsel toward dissolution of City Creek Mutual Water Company, and schedule Board Meeting if required Complete Consolidation / Dissolution of Mutual Water Companies •Continue to scan vital documents and incorporate them into the electronic document repository •Coordinate and train remaining District staff to ensure the document repository system is used consistently •Continue destruction of documents in compliance with the Records Retention Policy Implement Document Management Process •Review and revise overall District Strategic Plan •Complete District Clerk Handbook and present to the Finance and Human Resources Committee •Continue working with Community Heritage and Education Foundation (CHEF) Board and Committee members to finalize scope of project Document / Update Organizational Priorities and Philosophies 12 GOALS & OBJECTIVES 13 HUMAN RESOURCES Responsible for administering programs to attract and retain a diverse and qualified workforce. To remain an industry leader, this Program analyzes compensation and benefits packages against the market and implements new initiatives based upon market demands. Additionally: •Supports a successful workforce by acknowledging the need to build a work-life balance •Creates programs focused on the health and wellness of all employees •Administers the Risk Management Program to mitigate personnel injuries, property damage, and financial loss for the District •Administers the Pathway Program Total Employees: 2 Director of Administrative Services Human Resources Coordinator Implemented Workforce Programs in Support of the SNRC •Recruited and onboarded Wastewater Treatment Operators for the SNRC team •Facilitated a transition plan to relocate staff to the SNRC site Promoted a Positive Organizational Culture that Maintained a Supportive and Encouraging Work Environment •Implemented training and development programs for staff at all levels throughout the organization •Ensured connection between the new General Manager/CEO with staff by continuing the Breakfast with the Boss program, conducting annual staff focus group meetings, and prioritizing interactions with individual departments •Implemented Telework Policy that maintains District work expectations while allowing scheduling flexibility •Negotiated a three-year MOU that considered both long-term financial commitments and employee morale Promoted Regional Involvement and Provided Workforce Experience and Educational Opportunities •Enhanced the District’s Water and Resource Management Pathway Program to be more accessible to students within their current class structure •Modified current internship program for local youth to a summer internship program that provides more convenient work experience opportunities •Created a marketing campaign to recruit and onboard Customer Service and administrative volunteers 14 ACCOMPLISHMENTS •Continue to recruit and onboard quality candidates to join the SNRC team •Create administrative policies regarding work schedules and standby responsibilities for SNRC maintenance and operations •Identify opportunities to ensure collaboration between staff located at District Headquarters and the SNRC Implement Workforce Programs in Support of the SNRC •Update the District’s Succession Plan to identify organizational growth, prepare for future retirements, and continue to provide training and development opportunities for staff •Ensure salaries, benefits, and related programs are executed as adopted in the Memorandum of Understanding (MOU) effective July 1, 2023 -June 30, 2026 •Implement the Onboarding module of our current NeoGov Recruitment Suite to enhance the new-hire onboarding and transition process Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment •Engage schools within the District’s service area to promote participation in water industry workforce experiences •Monitor progress of summer internship program and report on program’s success to the Board •Develop educational and interactive tours of the SRNC with hands on lab experiments for students to understand wastewater physical and biological processes Promote Regional Involvement and Provide Workforce Experience and Educational Opportunities 15 GOALS & OBJECTIVES 16 PUBLIC AFFAIRS Oversees internal and external communication programs consistent with the District’s Vision and guiding principles. Through community and media relations, the Program provides effective and strategic communications to various stakeholders. This program is responsible for: •Grant Writing •Emergency Preparedness •Facility Rental Programs Total Employees: 4.5 Director of Strategic Services Public Affairs/ Conservation Manager Public Affairs Coordinator Part-Time Community Relations Representative (0.5) Public Affairs Specialist Advanced Construction of the SNRC and Implemented Facility Operations •Hosted community activities to maximize the SNRC public space including facility rentals and hosted events •Implemented the Wildlife Management Plan training and monitoring program •Identified and engaged community stakeholders regarding SNRC construction and commissioning Utilized Communication Methods that Enhanced the District’s Brand •Re-engaged with community members and organizations as post COVID-19 activities resumed in-person •Highlighted the District’s premier agency standards through presentations / engagements with national and regional organizations such as ACWA, CMUA, WateReuse, CSDA, and PRSA •Enhanced digital outreach tools to increase customer engagement and online presence of the District Advanced the District’s Emergency Preparedness Program •Held annual review of the Emergency Response and Hazard Mitigation Plans •Implemented the updated emergency response training program following plans established by the District and participated in a tabletop exercise •Monitored grant funding opportunities to construct mitigation measures identified in the District’s emergency plans 17 ACCOMPLISHMENTS •Host a ribbon cutting event for SNRC operations •Partner with third parties to offer community activities to maximize the SNRC public space Implement Community Based Activities at the SNRC •Engage with community members and organizations through pop-ups, presentations, and local events •Enhance the District’s digital presence through a website redesign and continue to increase social media engagement •Facilitate and update the District’s Strategic Plan Utilize Communication Methods that Enhance the District’s Priorities •Conduct formal update of the Emergency Response and Hazard Mitigation Plans •Partner with local and regional agencies for advanced emergency response trainings •Continue monitoring grant funding opportunities to construct mitigation measures identified in the District’s emergency plans and critical infrastructure projects Advance the District’s Emergency Preparedness Program 18 GOALS & OBJECTIVES 19 CONSERVATION Oversees programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for: •Communicating conservation benchmarks to various regulatory agencies •Preparing regulatory compliance documents •Monitoring legislative affairs Total Employees: 1 Director of Strategic Services Conservation Coordinator Public Affairs / Conservation Manager Coordinated Necessary Program Working Groups to Complete Conservation Reports •Facilitated working group meetings for the purpose of tracking informational data requests for State mandated reports •Prepared and submitted required regulatory reports such as the Supply and Demand Assessment and the Drought Risk Assessment Evaluated Rebate Program Success and Implemented Program Enhancements •Enhanced the rebate program to assist customers increase outdoor efficiency with the implementation of the Parkway Transformation and Irrigation Retrofit Program (Parkway and irrigation retrofit) •Developed digital material and other educational elements to provide customers with conservation resources, free community events (Earth Day Festival), and four workshops Participated in the Legislative Process as it Related to Changes in Conservation Regulations •Actively participated in the legislative and regulatory process, (AB 2449, SB 1157, SB 222, etc.) and updated District stakeholders on relevant impacts to District programs •Monitored legislation related to low- income rate assistance, residential water use standards, and communicate changes affecting District operations •Completed semi-annual Conservation and legislative updates to staff, the Governing Board, and quarterly updates to the Legislative and Public Outreach Committee and Community Advisory Commission •Following the Governor’s Executive Order, implemented Stage 2 of the District’s Water Shortage Contingency Plan 20 ACCOMPLISHMENTS •Maintain working group meetings for the purpose of tracking informational data requests for State mandated reports and identifying data inputs for new reporting requirements •Prepare and submit required water use efficiency reports such as the Drought Contingency Plan, Drought Risk Assessment, Urban Water Use Objectives, and Commercial, Industrial, Institutional (CII) classifications Coordinate Necessary Program Working Groups to Complete Conservation Reports •Streamline rebate programs to maximize customer water savings in line with new State objectives •Analyze water consumption data to better understand historical conservation responses to forecast trends Evaluate Rebate Program Success and Implement Program Modifications •Assess industry standards on educational programming and current tactics used by peer agencies •Participate in quarterly educational activities with schools located within the District’s service area •Develop digital material and other educational elements to provide customers with conservation resources, free community events, and four workshops Engage and Educate Students on Water Resources Consistent with State Curriculum 21 GOALS & OBJECTIVES 22 FINANCE & ACCOUNTING Oversees the business operations of the District in order to provide accountability and adequate control over the use of District funds. This Program also maintains financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations, and District policies. Total Employees: 6 Chief Financial Officer Finance Supervisor Business Services Coordinator Accountant Accounting Technician Sr. Accounting Technician Ensured Financial Stability with Full Understanding of Operational Complexities •Completed final billing for City of Highland and Urban Greening Grant external funding for the SNRC •Met with Water Reclamation staff and the General Manager/CEO to update cost estimates in the SNRC financial model •Completed selection of a rate consultant for updating cost of service estimates as a result of inflation and construction delays Fully Understood the Cost and Accounting Complexities Associated with New Funds •Completed setup of the Water Reclamation Fund in the District’s financial accounting software •Completed setup of CFD 2021-1 (Mediterra) in the Tyler software •Worked with consultant to place property assessments on tax rolls for the Mediterra development Maximized the Utility and Security of Financial Software and Data •Considered moving the Tyler Enterprise Resource Planning (ERP) software to a hosted environment but determined to keep systems in-house at least through fiscal year 2023-24 •Worked with IT to develop / identify link between Tyler and Geographic Information System (GIS) for projects closed in Fiscal Year 2022-23 23 ACCOMPLISHMENTS •Establish SNRC debt service and other reserves required to comply with agreements and ensure fiscal sustainability •Complete Rate Study and schedule Public Hearing to consider rate adjustments if necessary •Work with PERS staff to determine if the current “level pay” amount is adequate to pay down Unfunded Actuarial Liability (UAL) in 15 years as planned •Work with consultant to complete pension Unfunded Accrued Liability Policy and present policy to the Board Ensure Financial Stability with Full Understanding of Operational Complexities •Determine placed-in-service date and finalize total project costs •Closeout State Revolving Fund (SRF) funding including payment of retention •Allocate total project costs to physical plant components in sufficient detail to facilitate recording in the accounting system, future replacements and reasonable depreciation estimates Fully Understand the Cost and Accounting Associated with Placing the SNRC in Service •Develop standard procedures for linking capital improvements in the District’s accounting software to the GIS mapping software •Conduct informal review of financial software being used by other water agencies; schedule product demonstrations if potential replacements for Tyler are identified •Identify pros and cons for moving Tyler (or new ERP) to a hosted environment Maximize the Utility and Security of Financial Software and Data 24 GOALS & OBJECTIVES 25 INFORMATION TECHNOLOGY Manages the District’s technology infrastructure to support essential business and operational functions, including: •Installing and updating software utilized by other programs •Implementing cybersecurity measures including staff training to help ensure the prevention of data loss Proactively schedules hardware replacements as components near end-of-life in order to reduce the risk of downtime and security threats. Coordinates and implements agency-wide technology by facilitating vendor access and support for technology focused projects. Total Employees: 3 Chief Financial Officer Information Technology Manager Network Administrator Information Technology Analyst Ensured Reliability of Technology Infrastructure for Primary Business and Operation Requirements •Upgraded software, servers and SCADA radios at Plants 25, 39, 99, 131, and 132 •Replaced remaining end-of- life servers and switches at the SNRC and District Headquarters •Installed new SCADA virtual host servers and updated virtual software licensing at District Headquarters and Plant 134 •Ordered valve exercise equipment •Did not pursue installation of malware software due to conflict with antivirus software Improved Systems and Cybersecurity Measures for Response Functions •Continued monthly email phishing campaign and reduced click rate and educated staff on security risk •Established and equipped an Emergency Operations Center (EOC) at the SNRC •Implemented CISCO umbrella DNS security to add a layer of security to the District network Analyzed Current Systems to Enhance Reporting and Automate Processes •Implemented Tyler’s EnerGov Asset Management System •Finalized the transition from Cityworks to a new software solution •Assisted Administration with implementing a new naming convention within Laserfiche •Reviewed the pros and cons for transitioning Tyler Incode from On-Premise to their hosted solution Other Accomplishments •Replaced backup batteries at District Headquarters to align with the Emergency Response Plan 26 ACCOMPLISHMENTS •Upgrade all server operating systems to comply with Microsoft server life cycle •Begin working on updating active directory and group policy cleanup •Install hardware and software for the SNRC solids, headworks, and main electrical building •Upgrade District firewalls to comply with standardization best-practice Ensure Reliability of Technology Infrastructure for Primary Business and Operation Requirements •Continue monthly email phishing campaign to reduce click rate and educate staff on security risk •Implement multi-factor authentication software •Replace current email security with email cloud security •Contract for network penetration test Improve Systems and Cybersecurity Measures for Response Functions •Work with General Manager/CEO and Department heads to identify data-based decisions and source of supporting data •Work with Administration, Customer Service, and Finance staff to implement naming conventions for the District’s electronic document repository •Work with Tyler and Customer Service revise and streamline the utility billing packet processing workflow process, and reconfigure payment contract, conservations reports, disconnection door hangers, and arrearage report Analyze Current Systems to Enhance Reporting and Automate Processes 27 GOALS & OBJECTIVES 28 CUSTOMER SERVICE Provides the community with prompt, courteous, and world-class customer relations. As the primary contact point with residents, this program explores opportunities to provide: •Thorough and accurate responses to billing inquiries •Convenient locations and methods for payment •Resolve customer concerns about service delivery by coordinating assistance from Field personnel •Follow up with customers regarding the resolution to their concern Additionally, staff also downloads meter read data, audits data, and submits data files to a third-party vendor for bill printing and mailing. Total Employees: 7.5 Chief Financial Officer Customer Service Supervisor Part-Time Customer Service Rep I (0.5) Customer Service Rep III (2) Customer Service Rep I (2) Customer Service Rep II (2) Developed Strategies to Address Organizational Service Needs •Worked with IT to implement Tyler’s mobile work order application in EnerGov Asset Management •Reviewed new vendor contracts with potential expansion of capabilities and determined existing processes are more efficient •Gave Customer Service Supervisor administrative permissions to provide staff access to transaction processing tools Modified Processes to Comply with Changes in Legislation and Agreements While Maintaining Financial Stability •Met quarterly with Conservation to assist with changing drought regulations mandated by the State of California •Researched collection procedure options (in practice at other agencies) to avoid service disconnection as a tool for collection of delinquent account balances and determined not a suitable option for the District •Continued throughout fiscal year to run wastewater billing under both SNRC and City rates, pending transition of all wastewater flows to the SNRC Fully Understood and Utilized Smart Meter Capabilities •Coordinated with Public Affairs to increase the use of AMI data to support conservation efforts •Reviewed routes and billing dates for possible changes to accommodate timing of bills to customers on fixed incomes, and determined that enhancements will need to be made to billing software 29 ACCOMPLISHMENTS •Implement new payment options for District customers that are already supported by the District’s billing software •Work with Public Affairs to address Customer Service needs for the District’s new web portal Develop Strategies to Address Organizational Service Needs •Develop and propose a fee for recovery of costs associated with clearing obstructions preventing access to District meters •Develop and propose penalties or fees to discourage defaults on payment plan contracts •Research costs associated with credit card charges and propose a fee/charge for cost recovery •Prepare revisions to ordinance and fee schedule and incorporate them into Public Hearing process for rates Work with other Departments to Recover Costs That Are Not Currently Captured by the District Fee Schedule •Work with Tyler and IT to reconfigure Tyler revenue codes to accommodate new time requirements under SB 998 •Coordinate with Tyler and IT to revise and streamline utility billing packet processing workflow process Identify and Implement Software Adjustments Needed Due to SB 998 and other Legislation 30 GOALS & OBJECTIVES 31 METER SERVICES Maintains a network of approximately 23,000 Advanced Metering Infrastructure (AMI) meters. The AMI meter program provides the District and its customers with near real-time consumption information. This program also conducts routine maintenance, testing, and replacement of meters to ensure billing accuracy. Total Employees: 2 Director of Engineering and Operations Meter Technician II (2) Field Service Supervisor Operations Manager Implemented Inspection Program for AMI Meters •Identified the need of five vault lid replacements and created replacement schedule •Visually inspected meter boxes where read problems occurred and responded to 1,000 units monthly and made 70 repairs on average per month Worked with Customer Service to Address Coverage Issues with the AMI Network •Confirmed accuracy of two MIUs (meter interface unit) and meter reads per month •Decided not to install additional registers on meters in routes 44 and 123, that utilize cell towers for data transmission Continued Meter Testing Programs in Compliance with State Water Audits Best Practices •Conducted an audit of 10% of large meters for accuracy to ensure compliance with AWWA standards 32 ACCOMPLISHMENTS •Identify additional necessary vaults in need of lid replacements by utilizing replacement schedule •Visually inspect necessary meter boxes in routes where read problems are occurring Implement Inspection Program for AMI Meters •Confirm and correct MIU (meter interface unit) and meter numbers on meters that are not transmitting reliable read data •Install additional data collector near Plant 132 to address unreliable transmission of reads in routes 8, 155, 92, and 101 Work with Customer Service to Address Coverage Issues with the AMI Network •Conduct an audit of 10% of large meters for accuracy to ensure compliance with AWWA standards •Replace large meters that do not meet AWWA standards Continue Meter Testing Programs in Compliance with State Water Audits Best Practices 33 GOALS & OBJECTIVES 34 ENGINEERING Responsibilities include infrastructure planning, maintaining a safe and reliable water supply, and ensuring compliance with federal and state regulations. This program oversees wastewater collection and treatment capital projects. Additionally, coordinates and supports new development within the District’s service area by streamlining plan checking and inspection efforts. Total Employees: 4 Director of Engineering & Operations Associate Engineer Sr. Engineer (2) Developed and Implemented the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Preparing for New Development •Completed construction work for rehabilitation of the reservoir at Plant 108 •Completed design and construction of the grant-funded stationary generator at Plant 101 •Completed design work for rehabilitation of the booster pump system at Plant 101 •Initiated preliminary design of a Canal 3 Zone reservoir at the Applewood site Developed Plans to Optimize District Utilization of Surface Water and Groundwater Sources •Completed construction of process improvements related to Granular Activated Carbon at Plant 134 •Initiated groundwater master planning efforts to consider short-term and long-term actions related to groundwater production capacity Completed Construction and Commissioning of the SNRC •Completed construction of the emergency storage basin at the Weaver Basins Recharge Facility site 35 ACCOMPLISHMENTS •Complete construction work for rehabilitation of reservoir at Plant 56 •Complete construction work for rehabilitation of booster pump system at Plant 101 •Complete preliminary design of Canal 3 Zone reservoir at the Applewood site •Complete design and start replacement of 6.5 miles of District water mains •Monitor the Baseline Bridge replacement project and associated water main relocation •Design a Plunge Creek under-crossing for the North Fork Water Company Pipeline Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Preparing for New Development •Complete a study to evaluate alternatives to optimize surface water treatment capacity within the District •Complete groundwater master planning efforts to consider short-term and long-term actions related to groundwater production capacity •Conduct analysis of alternative energy sources •Complete design of new groundwater well at Plant 129 Develop Plans to Optimize District Water and Energy Resources •Complete construction of the regional recycled water pipeline and Weaver Basins •Participate in the feasibility study for salt mitigation related to recharging groundwater with recycled water Complete Construction and Commissioning of the SNRC 36 GOALS & OBJECTIVES BREAK 37 38 WATER PRODUCTION Responsible for the daily monitoring and operations of the entire water production system to ensure preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro-pneumatic plants, and the Supervisory Control and Data Acquisition (SCADA) system. This program is responsible for water delivery for the North Fork Water Company. Total Employees: 7 Director of Engineering and Operations Operations Manager Administrative Assistant Sr. Water Production Operator Water Production Operator II (2) Water Production Operator III (2) Water Production Supervisor Implemented a Plan to Identify and Enhance Water Sources’ Requirements Due to the SNRC Discharge Location •Completed coordination with contractor to rehabilitate booster at Plant 125 to accommodate increased well capacity •Worked with Engineering to determine best utilization of water produced by Well 120 •Identified and prioritized making Well 120 operational with electrical, SCADA, and required permitting Enhanced the SCADA System to Achieve Water Production Requirements •Investigated and temporarily deferred installation of SCADA tower to improve radio communications at District Headquarters or alternate sites •Worked with IT to complete ClearScada software update •Completed SCADA radio updates at Plants 25, 33, 37, and 38 Rehabilitated Plant Components to Ensure Water Production •Completed replacement of isolation valves to repair critical PRV (Baseline/Sterling, N Church, and Central/Mansfield) Stations 309, 305, and 325 •Completed Plant 108 rehabilitation project 39 ACCOMPLISHMENTS •Install pressure regulating valve (PRV) at Plant 129 to connect plant to the upper zone distribution system •Contract for repairs and upgrades to Well 120 to ensure its operational readiness for summer 2023 production •Support work of contractor to complete rehabilitation of Plant 101 Implement a Plan to Identify and Enhance Water Sources’ Requirements Due to the SNRC Discharge Location •Work with IT to install SCADA tower to improve radio communications at District Headquarters or alternative site •Work with contractor to inspect and enhance communication and telemetry Enhance the SCADA System to Achieve Water Production Requirements •Coordinate with Water Maintenance for replacement of isolation valves to repair critical PRV (Baseline/Sterling) •Work with Engineering for rehabilitation of reservoir at Plant 56 •Solicit proposals and finalize new master agreements for pump and motor maintenance Rehabilitate Plant Components to Ensure Water Production 40 GOALS & OBJECTIVES 41 WATER TREATMENT Responsible for water treatment management of three different sources of supply used by the District: surface water, groundwater, and imported state project water. The District operates Plant 134, which is a Surface Water Treatment Plant that can treat Santa Ana River water and imported State Project Water. Staff also operates two unique groundwater treatment facilities: •Plant 28 uses Granular Activated Carbon (GAC) •Plant 39 is a blending facility Total Employees: 2 Director of Engineering and Operations Sr. Treatment Plant Operator Water Production Supervisor Operations Manager Supported Construction of GAC at Plant 134 •Developed an operating plan for Plant 134 while construction is ongoing •Amended Permit with the State Water Resources Control Board (SWRCB) •Provided final performance data to the SWRCB and closed-out the compliance order Completed Plant 134 Membrane Replacements Using a Five-Phase Replacement Schedule •Deferred to allow use of funds for other projects and rolled forward to FY 2023-24 objectives Evaluated and Rehabilitated Existing Clean-in-Place Equipment at Plant 134 •Replaced primary pump and scheduled remaining pumps for replacement next fiscal year 42 ACCOMPLISHMENTS •Develop flow standards to meet water quality objectives •Determine frequency of carbon filtration media changeouts to maintain water quality •Implement data collection requirements identified in the permit amendment Maximize Plant 134 Water Production While Utilizing GAC Facilities •Procure the necessary membrane modules from the manufacturer in accordance with the District’s Purchasing Policy •Coordinate and schedule in-house installation of new membranes in the fifth and final train Complete Plant 134 Membrane Replacements Using a Five- Phase Replacement Schedule •Inspect existing equipment and establish prioritized replacement schedule •Purchase and install necessary parts and materials to complete the clean-in-place equipment project Evaluate and Rehabilitate Existing Clean-in-Place Equipment at Plant 134 43 GOALS & OBJECTIVES 44 WATER QUALITY Ensures the District’s compliance with State and Federal Drinking Water Regulations. This program manages: •Backflow prevention •Water sampling •Fire hydrant flushing program Water Quality is also assisting in the development and launch of the Fats, Oils, and Grease (FOG) program for SNRC pre-treatment. Total Employees: 2.5 Director of Engineering and Operations Water Production Supervisor Water Quality Coordinator Operations Manager Water Quality Technician Part-Time Water Quality Worker Evaluated Water Quality Regulations and Improved Process Efficiencies to Enhance Water Quality Compliance •Implemented sampling programs to maximize surface water treatment process efficiencies •Monitored EPA requirements for Unregulated Contaminant Monitoring Rule 5 (UCMR5) sampling Re-Routed Outdated Fire Service Backflows to Aboveground •Replaced outdated Fire Service backflows at Stater Bros, Safety Kleen, and two apartment complexes Assisted in Launching Fats, Oils, and Grease (FOG) Program Transition and Software Procurement •Worked with Engineering and IT during software implementation •Assisted with program transition and compliance 45 ACCOMPLISHMENTS •Implement Updated Sampling Requirements outlined in the District’s latest Permit amendment •Complete EPA registration for Unregulated Contaminant Monitoring Rule (UCMR5) sample schedule •Identify sample requirements for US EPA’s Revised Lead and Copper Rule, effective summer 2024 Evaluate Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Compliance •Complete backflow software migration and implementation for cloud-based service •Provide customer and private tester training for accessing and updating customer device information via cloud-based software •Work with customers to update outdated and unapproved backflow devices Implement Backflow Program Enhancement Modifications •Conduct customer outreach and vendor training for cloud-based compliance reporting •Create customer Best Management Practices campaign to maintain program standards •Assist Water Reclamation with procurement and management of contract for FOG compliance inspection Implement Customer / Vendor FOG Program Requirements and Training Campaign 46 GOALS & OBJECTIVES 47 WATER MAINTENANCE Responsible for the repair and replacement of the District’s 300 miles of water pipeline. This program coordinates with Engineering and Water Production to install water service lines, fire hydrants, meters, valves, and all related equipment. Staff members remain on-call during non-business hours to respond to customer afterhours requests and emergencies. Total Employees: 16 Field Service Worker I (3) Field Service Worker II (4) Field Service Supervisor Sr. Field Service Worker Storekeeper / Buyer Director of Engineering and Operations Operations Manager Field Service Worker III (6) Administrative Assistant Prioritized Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response •Ordered valve exercise equipment and software •Inspected, maintained, and replaced 900 of 3,025 hydrants on a three-year cycle Completed Evaluation of Service Order / Asset Management Software •Worked with IT to hold product demonstrations •Incorporated feedback from staff to finalize decision and procure Tyler’s Asset Management software •Provided training for staff on use of new software Continued Replacement Program for Mains and Inground Fire Service Devices •Replaced undersized main in Pleasant Hill Drive, west of Palm Avenue •Coordinated with Water Quality to develop a replacement schedule for outdated fire services; and replaced three inground fire services with new “N’’ shaped aboveground devices 48 ACCOMPLISHMENTS •Replace 40 identified inoperable gate valves on west side of the District; Conduct at least 20 in-house and supplement efforts to replace up to 20 more using outside contractors •Coordinate with Production to perform valve replacements to isolate crucial PRV stations in Baseline/Sterling, North Church, and Central/Mansfield •Inspect, maintain, and replace, as needed, 3,000 hydrants on a three-year cycle •Solicit proposals and finalize new master agreement for pipeline repair services Prioritize Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response •Continue training all staff on use of new software •Begin documenting and tracking all labor, equipment, and materials for water maintenance activities Assess Operation of Tyler’s EnerGov Asset Management Software •Replace 1,500 feet of water main in both Elmwood Drive north of Lynwood and Valaria Court east of Valaria Drive •Coordinate with Water Quality to replace identified outdated fire services Continue Replacement Program for Mains and Inground Fire Service Devices 49 GOALS & OBJECTIVES 50 WASTEWATER COLLECTION Routinely inspects, cleans, repairs, and conducts replacements of the District’s 230 miles of collection pipelines to prevent spillage and leak of wastewater. The pipeline inspection program uses a sewer inspection Camera/Transporter and Closed- circuit Television (CCTV) technology to document pipeline condition attributes for maintenance or replacement consideration. Additionally, this Program conducts a weekly sewer cleaning program using specialized equipment. The program ensures the entire system is cleaned within 24 months, with high maintenance areas cleaned more regularly. Total Employees: 4 Field Service Worker II (2) Field Service Worker III Director of Engineering and Operations Operations Manager Sr. Field Service Worker Administrative Assistant Field Service Supervisor Continued Wastewater Collection System Maintenance and Management •Video inspected and assessed all District sewer mains between the northern and southern District boundaries, and west of Victoria (75 miles) •Cleaned 230 miles of sewer main Provided Support for New Fats, Oils, and Grease (FOG) Program •FOG program is on hold until the SNRC is operational and a FOG inspector is contracted Assisted with Updating the Sewer System Management Plan (SSMP) •Provided collection data for the SSMP •Updated collection system assets listed in the next SSMP 51 ACCOMPLISHMENTS •Video inspect and assess 75 miles of District sewer mains between the northern and southern District boundaries, and east of Victoria •Clean 230 miles of sewer main •Develop communication protocols for Collection staff to notify SNRC staff of specialized maintenance activities (tree root chemicals, insects, etc.) Continue Wastewater Collection System Maintenance and Management •Identify high maintenance areas within the collection system for the new contracted FOG inspector •Assist FOG inspector in prioritizing correction efforts Provide Support for New Fats, Oils, and Grease (FOG) Program •Video sewer mains to identify root intrusions •Schedule foam blasting of identified areas to control roots •Schedule spraying of 2,500 manholes for insect control Keep Sewer Mains Clear of Pest and Obstructions 52 GOALS & OBJECTIVES 53 WATER RECLAMATION Responsible for treating and disinfecting 8 million gallons of wastewater per day (MGD). Reclamation of wastewater generated by District customers will transition from a service contracted with the City of San Bernardino Water Department, to in-house operations at the newly completed Sterling Natural Resource Center (SNRC) during the 2022-23 Fiscal Year. SNRC operations include anaerobic digestion for energy generation to help offset the cost of power needed to operate the facility. Total Employees: 9 Director of Engineering and Operations Water Reclamation Manager Administrative Analyst Wastewater Treatment Plant Mechanic Electrical and Instrumentation Controls Technician Sr. Wastewater Treatment Plant Operator Wastewater Treatment Plant Operator III (4) Completed Staffing and Training for New Wastewater Treatment Operations •Hired Wastewater Treatment Plant Operator III •Solicited for three more staff •Updated staffing plan to hire remaining staff next year •Staff participated in several training events by different vendors Met and Exceeded Compliance Requirements for the SNRC •Implemented HachWIMS compliance software •Negotiated all AQMD and water quality permits •Held Title 22 hearing for Effluent permit •Updated Sewer Ordinance to establish legal authority to enforce pre- treatment program; includes FOG Commenced Operations at the SNRC •Completed seed sludge investigations •Finalized agreement with Anaergia for biosolid residual disposal •Implemented a preventative maintenance schedule within Tyler Energov Asset Management software 54 ACCOMPLISHMENTS •Continue to hire staff in accordance with staffing plan finalized by Human Resources •Ensure new employees are trained for operations and maintenance for the SNRC •Work with Water Quality to procure a contract for the FOG program compliance inspector Complete Staffing and Training for New Wastewater Treatment Operations •Implement and manage pre-treatment program. •Comply with Air Quality Management District (AQMD) emissions requirements. •Comply with recycled water quality requirements Meet and Exceed Compliance Requirements for the SNRC •Complete transition: •of wastewater flows to the SNRC over a three-month period •to discharge water to Weaver Basins •to generate on-site renewable energy •to dispose residual solids •Perform optimization of the Aeration system •Manage new preventative maintenance program Commence Operations at the SNRC 55 GOALS & OBJECTIVES 56 FACILITIES MAINTENANCE Oversees the maintenance of all District facilities located throughout the 30.1 square mile service area for operating the utility systems. The program’s oversight includes these facility types: •Administration buildings •Water facilities •Sterling Natural Resource Center •District-owned vacant properties •Easements Staff’s focus is to mitigate expenses by maintaining a complex facilities management system to achieve department goals. Total Employees: 2 Director of Engineering and Operations Facilities & Fleet Supervisor Operations Manager Facilities Maintenance Worker II Completed Long-Term Site Improvements at Plant 39 •Upgraded asphalt roads around storage tanks •Deferred construction of restroom for staff-use at Plant 39 due to increase scope of improvements •Painted pump house exterior Continued Phased Upgrades and Rehabilitation of District Facilities •Deferred scheduled rehabilitation projects at various Plants due to unanticipated expenditures for SNRC •Installed fire suppression system at SNRC Tracked Inventory at Del Rosa Location •Deferred inventory tracking at Del Rosa location due to pending relocation of inventory storage Implemented New Facilities Maintenance Tracking Software •Worked with IT to select Tyler’s Energov Asset Management program •Transferred existing Facilities’ data into new software •Worked with IT to develop custom fields for service order requests 57 ACCOMPLISHMENTS •Complete concept, design, and construction of inventory warehouse including automated inventory tracking system •Install automated access system •Construct storage bays for bulk class II base and cold mixed asphalt •Re-roof pump house Complete Long-Term Site Improvements at Plant 39 •Develop a comprehensive site improvement project list •Contract for painting building at Plant 33 •Insulate Plant 59 Building •Complete HVAC project by removing swamp coolers and sealing wall openings at Plants 39, 142, and 149 •Continue to improve energy efficiency of pump houses and other Plant buildings through lighting upgrades, insulation, and weatherstripping Continue Phased Upgrades and Rehabilitation of District Facilities •Determine most cost-effective solution for physical security at all three sites Assess Security Needs at SNRC, District Headquarters, and Plant 134 58 GOALS & OBJECTIVES 59 FLEET MAINTENANCE Manages the preventative maintenance program for all District vehicles and heavy equipment, including the procurement of fleet items and ensuring compliance with State and Federal air quality rules and regulations. The District’s fleet is comprised of light and heavy-duty utility trucks. Light utility trucks are used by water and wastewater staff to maintain the infrastructure. Heavy equipment fleet includes large specialized equipment used for routine maintenance and inspection of the water distribution and wastewater collection systems. Total Employees: 1 Director of Engineering and Operations Fleet Maintenance Coordinator Facilities & Fleet Supervisor Operations Manager Assessed Future Operations of Fleet Management •Transferred Fleet Maintenance reporting to the new Facilities & Fleet Supervisor •Created a new Fleet Maintenance Coordinator position upon retirement of the Equipment Mechanic III •Fulfilled the Fleet Maintenance Coordinator position with assistance from Human Resources Continued to Implement the Air Quality Management Program •Hired a consultant to manage all air quality regulations for AQMD and the California Air Resources Board (CARB) •Transmitted emissions data to the Bureau of Automotive Repair (BAR), using new Network Fleet devices Enhanced the Vendor- Managed Fleet Maintenance Program •Deferred enhancement of the Vendor- Managed Fleet Maintenance Program due to pending fulfilment of Fleet Maintenance Coordinator position 60 ACCOMPLISHMENTS •Train new Fleet Maintenance Coordinator •Enhance service orders in the Fleet Maintenance Module within Tyler’s Energov Asset Management (EAM) software •Complete and distribute a Request for Proposal (RFP) for fuel delivery •Continue installation of EV charging stations Assess Future Operations of Fleet Management •Manage all air quality regulations for AQMD and California Air Resources Board (CARB) •Transmit emissions data to the Bureau of Automotive Repair (BAR) using new Network Fleet devices Continue to Implement the Air Quality Management Program •Complete an RFP for mobile maintenance •Provide a list of pre-approved safety repairs and replacements for the RFP •Contract with a vendor to provide detailing for specialized equipment Enhance the Vendor-Managed Fleet Maintenance Program 61 GOALS & OBJECTIVES DISCUSSION Agenda Item #3b April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #3b Informational Item 7 5 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Total Dissolved Solids and Water Recycling RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS At the March 8, 2023 meeting, the Board authorized a Memorandum of Understanding (MOU) between East Valley Water District (EVWD), San Bernardino Valley Municipal Water District (Valley District), San Bernardino Municipal Water Department and City of Redlands to establish total dissolved solids (TDS), or salt, mitigation commitments necessary for the Regional Board to issue permits for the discharge of recycled water by EVWD and the other parties for the purpose of recharging the groundwater basin. The impact of recycled water on TDS concentrations in groundwater is relevant because recycled water has higher TDS than the allowable level for the effected groundwater basin. The MOU contemplates a feasibility study to identify a sustainable and cost- effective strategy for managing the TDS in the groundwater basin, which may include a regional desalter to remove TDS from recycled water. The strategy would also include seeking grant funding to support TDS mitigation efforts. The regulations associated with TDS in groundwater are important for the District and regional water agencies that rely on the groundwater basin. A presentation will provide perspective on typical TDS levels in water, regulations on TDS, and mitigation options that will be evaluated. Staff will bring back to the Board the results of the study that will be performed over the next year. AGENCY GOALS AND OBJECTIVES I - Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services Agenda Item #3b April 12, 20232 Meeting Date: April 12, 2023 Agenda Item #3b Informational Item 7 5 4 REVIEW BY OTHERS This agenda item has been reviewed by the Executive Management Team. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Jeff Noelte Director of Engineering and Operations ATTACHMENTS Presentation Total Dissolved Solids & Water Recycling April 12, 2023 •Total Dissolved Solids (TDS), or salinity is the concentration of dissolved mineral salts in water •Typically in the form of: •Sources of Dissolved Solids •Natural weathering process in storm water runoff •Household uses discharged to sewer •Chemical addition at treatment plants •Specifically, chlorine in the form of sodium hypochlorite (bleach) •Self-regenerating water softeners 2 INTRODUCTION TO DISSOLVED SOLIDS 3 TDS OF VARIOUS WATERS Water Type Typical TDS (mg/L) Santa Ana River Water 140 -240 Imported Water 230 -330 Drinking Water 200 -500 EVWD Recycled Water (estimated)530 Brackish Water 500 –17,000 Sea Water 35,000 Reverse Osmosis Treated Water 25 -150 •EPA developed Maximum Containment Levels (MCLs) for drinking water to ensure public health 4 REGULATORY REQUIREMENTS FOR TDS Primary MCLs Secondary MCLs Primary MCLs are standards specifically for constituents that are immediately hazardous and selected to protect public health. Secondary MCLs are standards that contribute to a lack of trust in drinking water and have potential or have the potential to accumulate over long time periods. •Taste •Odor •Smell •Scaling/Corrosion TDS in EVWD Water Chemical Secondary MCL (mg/L)Detection Level Average Level Detected Unit of Measure Range of Detection Likely Source of Contamination Total Dissolved Solids (TDS)1000 5 296 mg/L 170-510 Runoff/ leaching from natural deposits •Indirect Potable Water Reuse (i.e., Groundwater Recharge) carries salt from daily uses into the ground water •State Water Resources Control Board regulates water quality for groundwater 5 GROUNDWATER IMPACTS -REGULATIONS Water Quality Objectives Bunker Hill A 310 mg/L Bunker Hill B 330 mg/L* 2018 Ambient Levels Note: Assimilative capacity is available Bunker Hill A 330 mg/L Bunker Hill B 280 mg/L* •Assimilative capacity allows the discharge of a contaminant at higher levels if the basin remains below the objective •Elevated TDS loading over time increases TDS of groundwater basin 6 GROUNDWATER IMPACTS –TDS INCREASES 7 GROUNDWATER IMPACTS –MODEL RESULTS •Modeled flow paths of recycled water from Weaver Basins Legend Active municipal well Inactive municipal well Monitoring well Private well, active Recycled Water Flow Paths 8 GROUNDWATER IMPACTS –MODEL RESULTS (CONTINUED) •Projected TDS Concentrations 250 275 300 325 350 250 275 300 325 350 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 TD S ( m g / L ) Historical Baseline (Includes Redlands 3.5 MGD) Baseline + SNRC Bunker Hill -B Water Quality Objective for TDS = 330 mg/L Treatment Technology Description Cost Pros Cons Reverse Osmosis Liquids are pushed under high pressure through a semipermeable membrane, reject particles are collected on the membrane and removed as a high strength waste Capital $ $ $ Ops $ $ $ Highly Effective At Removing TDS Proven Track Record High Energy Costs Includes A Reject Waste Stream Ion Exchange Liquid flows through a substrate that will exchange molecules that cause salinity with other non-salinity causing molecules Capital $ $ Ops $ $ $ Proven Technology Waste Resin Disposal Includes A Reject Waste Stream Frequent Media Change Outs 9 TREATMENT OPTIONS DISCUSSION Agenda Item #4a April 12, 20231 Meeting Date: April 12, 2023 Agenda Item #4a Discussion Item 7 5 3 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Sterling Natural Resource Center Contract Amendments for Balfour Beatty, AKD Consulting, and Group Delta Consultants Contracts RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to execute contract amendments as follows: 1. Balfour Beatty Amendment Number 9 for Regional Recycled Water Pipeline Extension Additional Cost for a not to exceed amount of $7,516,583 (Valley District reimbursable); 2. Balfour Beatty Amendment Number 10 for Weaver Basins Frontage Improvements for a not to exceed amount of $429,950 (Valley District reimbursable); 3. Balfour Beatty Amendment Number 11 for added scope items for the SNRC Administration Center and Treatment Plant for a not to exceed amount of $2,500,000; 4. AKD Consulting Amendment Number 2 for additional program management services for the SNRC Project for a not to exceed amount of $128,200; and, 5. Group Delta Consultants Amendment Number 2 for additional material testing and inspection services for the Sterling Natural Resource Center for a not to exceed amount of $50,000. In addition, it is recommended that the Board of Directors authorize the release of half of the retention for the SNRC Administration Building work since the District has taken beneficial use of the facility. This will allow Balfour Beatty to pay subcontractors in full so that final lien releases can be obtained. BACKGROUND / ANALYSIS Additional work is needed to accommodate the change in the Sterling Natural Resource Center (SNRC) discharge location from Redlands Basins to Weaver Basins, and to complete some elements of the SNRC Administration Center and Treatment Plant. The additional work requires contract amendments with the District’s design-build partner and consultants. Specifically, contract amendments are recommended for Balfour Beatty, AKD Consulting, and Group Delta Consultants. Agenda Item #4a April 12, 20232 Meeting Date: April 12, 2023 Agenda Item #4a Discussion Item 7 5 3 Balfour Beatty Amendments On March 8, 2023, the Board authorized the fourth amendment to the Regional Recycled Water Facilities Reimbursement Agreement with Valley District that increased the total reimbursable amount to $44,429,216 to cover the additional cost associated with the Regional Recycled Water Pipeline and Weaver Basins. It is recommended that two amendments to the Balfour Beatty contract be used to provide a mechanism for Balfour Beatty to execute this work that will be reimbursed by Valley District. Amendment Number 9 for $7,516,583 would address Regional Recycled Water Pipeline work, and Amendment Number 10 for $429,950 would address Weaver Basins work. A third amendment (Number 11) for work related to the SNRC Administration Center and Treatment Plant is recommended for a not to exceed amount of $2,500,000. This work involves additional paving rehabilitation, piping insulation, membrane cassette upgrade, sewer lateral work in Base Line, electrical trim plate upgrade, and HVAC modifications for the Administration Center. AKD Consulting Amendment The existing scope of the program management services being provided by AKD Consulting was based upon project completion at the end of 2022. Re-scoping work by the Program Manager has allowed the authorized funds to stretch through April 2023. Additional program management services by AKD Consulting are recommended to be extended through January 2024 based on time and material for an additional amount of $128,200. A portion of this, $32,200, is reimbursable by Valley District under the fourth amendment to the reimbursement agreement. Group Delta Amendment Group Delta Consultants have been providing material testing and inspection services for construction of the SNRC. To support the remaining construction, additional material testing and inspection services are recommended through an amendment with Group Delta Consultants for a not to exceed amount of $50,000. The additional work primarily involves anchor bolt inspection, masonry inspection, and concrete testing for pipe supports at the recycled water pump station. AGENCY GOALS AND OBJECTIVES I - Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources C. Strengthen Regional, State and National Partnerships IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services B. Enhance Planning Efforts that Respond to Future Demands Agenda Item #4a April 12, 20233 Meeting Date: April 12, 2023 Agenda Item #4a Discussion Item 7 5 3 REVIEW BY OTHERS This agenda item has been reviewed by the Executive Management Team. FISCAL IMPACT The contract amendments for work that is reimbursable by Valley District do not have a fiscal impact. The reimbursable work amounts to $7,978,733. The remaining contract amendments for $2,646,000 will be funded from the Water Reclamation Fund and be reimbursed through an amendment to the District’s State Revolving Fund loan. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Jeff Noelte Director of Engineering and Operations ATTACHMENTS Balfour Beatty Amendment 9 Balfour Beatty Amendment 10 Balfour Beatty Amendment 11 AKD Consulting Letter Proposal Group Delta Consultant Letter Proposal East Valley Water District Sterling Natural Resource Center Amendment Number 9 Balfour Beatty Progressive Design-Build Contract Item 1: RRWP Extension Additional Cost a) Price Escalation – Labor Wage Increase and Materials Escalation. b) Delays in Production due to Permit Working Hour Restrictions. c) City of Highland Encroachment Permits Traffic Control Restrictions and Caltrans Restrictions. d) Changes due to Final Design Alignment and Potholing of Existing Utilities along the Pipeline Route. e) Additional Inspection for Arcadis f) ADL Testing per Caltrans Permit. g) Extension of Builder Risk Insurance, General Liability Insurance, Bond & Bond Extension Premium h) General Conditions & General Requirement Extension (Allowance for 233 days) i) Hydrostatic Testing of approximately 1,000 LF of Existing 36” Repurposed Pipeline on 6th Street. j) Credit for Work not Performed on Phase 1 Pipeline Segment. Total Amount of Amendment 9: $ 7,516,583.00 EVWD Owners Approval: Owner Acceptance: _________________________ Date: ______________ Balfour Beatty_________________ (Company) _____________________________ (Signature) Brian Cahill – President__________ (Title) _____________________________ (Date) East Valley Water District Sterling Natural Resource Center Amendment Number 10 Balfour Beatty Progressive Design-Build Contract Item 1: Weaver Basin Frontage Improvements a) Provide and Install Frontage Landscaping for Landscape design drawings. b) Grade 4,805 SF of sidewalk and 6,426 SF of Landscape c) Construct 4” Concrete Sidewalk, per City of Highland Std Plan 208 Approximately 5,485 SF Item 2: Weaver Basin Entrance Gate Improvements Modifications per Arcadis design for Old Greenspot Entrance Drawings_2022 09 16 per City of Highland Comments a) Grading / Import / Excavation b) Concrete c) Electrical d) Fencing e) Communications Total Amount of Amendment 10: $429, 950.00 EVWD Owners Approval: Owner Acceptance: Date: Balfour Beatty (Company) (Signature) Brian Cahill – President (Title) (Date) East Valley Water District Sterling Natural Resource Center Amendment Number 11 Balfour Beatty Progressive Design-Build Contract Item 1: SNRC Enhancements a) Additional Paving Rehabilitation b) Membrane Cassette Upgrade c) Additional Piping Insulation d) Electrical Trim Plate Upgrade e) MPR Wood Ceiling Upgrade in Multi-Purpose Room f) 5th Street Slurry Seal Coating & Road Striping g) SCE Service Upgrades h) Wellness Center HVAC i) Additional Sewer Laterals on Base Line Amendment 11 Enhancements $2,300.000.00 *Contingency for the Remaining Project $ 200,000.00 Total Amount of Amendment 11: $2,500,000.00 *Contingency for Remaining Project is District Controlled EVWD Owners Approval: Owner Acceptance: _________________________ Date: ______________ Balfour Beatty_________________ (Company) _____________________________ (Signature) Brian Cahill – President__________ (Title) _____________________________ (Date) AKD CONSULTING 3 Coral Cove Way, Dana Point, California 92629-2735 T 949.388.0232 C 909.224.3160 www.akdconsulting.com April 2, 2023 Mr. Jeff Noelte Director of Engineering & Operations East Valley Water District 31111 Greenspot Road Highland, California 92346 Subject: Request for Contract Amendment No.2 to Provide Program Management Services for Sterling Natural Resource Center (SNRC) Dear Mr. Noelte, Pursuant to our recent conversations with you AKD Consulting is pleased to submit this proposal for a contract amendment to provide the subject services. Since the original agreement with the District on December 12, 2018 and the subsequent Amendment No.1 of November 26, 2021 several changes in the Scope of Work have taken place. Furthermore, the agreement and Amendment No. 1 was based on the scope of work for a duration until December 2022. With your assistance and our mutually agreed division of responsibilities the budget has been effectively managed to last until April 2023. As you are aware, the project is anticipated to be completed by the end of the year 2023. Following that tasks related to project closeout and completion of tasks required by the contract from the Design Builder and project financing paperwork completion with adherence to the SRF requirements will need to be completed. Based on our discussions and the tasks remaining in the project for which services will be provided, the following scope of services briefly outlines the project the services required to complete the tasks. Scope of Work A. Remaining Program Management Services 1. Coordination with Anaergia related to two Anaergia digesters, including the work done by Balfour Beatty on behalf of Anaergia and the processing of invoices related to that work. 2. Coordination with Woodard & Curran and Rincon Consultants for the preparation of revised Title 22 report as well as revised antidegradation analysis in support of the Regional Water Quality Control Board permit. 3. Coordinate the reimbursement agreement for the construction of Weaver Basins and extension of pipelines with San Bernardino Valley Municipal Water District and the payment of invoices with supporting data from Valley District. 2 4. Coordinate with Fibracast relative to delivery of membranes and prior to that all the fixtures required for installation. 5. Provide support as requested with commissioning and startup of the plant. 6. Provide overall coordination to control schedule and budget issues related to the changes to the project. 7. Provide support in project closeout with requiring the Design Builder to submit all the paperwork required as well as the paperwork required for SRF funding in compliance with their requirements. Fee Based on our understanding and scope of work above and an average involvement of about 12 hours per week, with the schedule now projected for completion of recharge basins to be complete to receive water by the end of August 2022 and site work and project closeout later, we respectfully request that our contract amount be increased by $ 128,200 from $ 839,000 to a fee amount not to exceed sum of $967,200. Of the amount of $128,000, $32,200 will be reimbursed by Valley District for the services already provided. AKD Consulting appreciates this opportunity to submit this proposal for contract amendment and we look forward to providing these services to East Valley Water District. If you require any additional information, please do not hesitate to contact me on my mobile phone at 909-224- 3160 or by email at ash@akdconsulting.com Thank you for the opportunity to be of continued service to the District. Sincerely, Ashok K. Dhingra Principal AKD Consulting ACCEPTED By: _____________________________ Date: ___________________________ East Valley Water District Title: ___________________ October 5, 2020  East Valley Water District   31111 Greenspot Road  Highland, CA 92346  Attention: Ash Dhingra  Subject: Change Order Request to Provide Materials Testing and Inspection Services  Sterling Natural Resource Center Project  Highland, California  GDC Project No. MT3220  Dear Mr. Dhingra,  Group Delta would like to respectfully request a change order for Material Inspection and Testing  for  the  subject  project.  This  estimate  was  prepared  using  the  approved  SNRC  –  July  2020  remaining activities schedule along with the expansion of our original scope. The scope expansion  includes but is not limited to; Grading and compactive efforts in and around the facility, concrete  placement observation/ sampling & laboratory testing and construction of the digester facilities.  We are requesting the amount of $294,221.65.  Please provide written authorization to proceed.   GROUP DELTA CONSULTANTS, INC.  Nicholas Turner QCM, QSP   Regional Director of Inspection &Testing   March 30, 2023 Group Delta would like to respectfully request a change order for Material Inspection and Testing for the subject project. The scope expansion includes anchor bolt inspection, masonry inspection, and inspection and testing associated with concrete pipe supports. The estimated effort is 400 hours of technician labor at $125 per hour for a total of $50,000. Water Supply Update Northern California 8 Station 59.6 inches Updated 4/6/23 Big Bear 22.99 inches Updated 3/17/23 Annual Average: 18.5'' WATER YEAR Highland October 1- September 30 18.29 inches Updated 4/6/23 ACRONYMS CFS = cubic feet per second mAF = million Acre-Feet 75% Annual Average: 11.9'' 29% of Capacity STATE WATER PROJECT ALLOCATION WATER SHORTAGE STAGE STATE WATER PROJECT Lake Mead & Powell Updated 2/28/23 DISTRICT WATER SUPPLIES Annual Average: 53.2'' GROUNDWATER SURFACE COLORADO RIVER STORAGE OTHER INDICATORS RAINFALL Current Available CapacityAvailable Capacity Current 4.9 mAF 82% of Capacity Bunker Hill Basin 2.94 mAF 83% of Capacity Lake Oroville Updated 4/5/23 16.1 24.3 25.8 Santa Ana River (CFS) USGS SAR Supp Gage Updated 4/6/23 Last YearLast Year 15.5 mAF Historic Avg 2014-2022 Monthly Average 2023-Monthly Flow Average