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Home My WebLink AboutAgenda Packet - EVWD Board of Directors - 05/24/2017REGULAR BOARD MEETING Closed Session Begins at 4:00 PM May 24, 2017 - 5:30 PM 31111 Greenspot Road, Highland, CA 92346 AGENDA "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 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. 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. 1.Approval of Agenda RECESS INTO CLOSED SESSION CLOSED SESSION 2.CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section 54956.9(d) (1)] Name of Case: Socal Environmental Justice Alliance v. San Bernardino Valley Municipal Water District, et al., San Diego Superior Court Case No. 37-2016-00032816-CU-TT-CTL 3.CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section 54956.9(d) (1)] Name of Case: City of San Bernardino v. East Valley Water District, et al., San Diego Superior Court Case No. 37-2016-00038119-CU-WM-CTL 4.CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: Carl F. Kovach v. East Valley Water District, CASE No. CIVDS 1603176 5.CONFERENCE WITH LABOR NEGOTIATORS [Government Code Section 54957.6(a)] District Designated Representatives: John Mura, General Manager/CEO Employee Organization: East Valley Water District Employee Partnership 5:30 PM RECONVENE MEETING PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTIONS ITEMS PRESENTATIONS AND CEREMONIAL ITEMS • Introduction of Newly Hired Employee Carmen Green, Customer Service Representative I • Recognition of "Beyond the Faucet" Poster Contest Winners PUBLIC COMMENTS 6.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.April 12, 2017 regular meeting minutes b.April 19, 2017 special meeting minutes c.April 26, 2017 regular meeting minutes d.Directors' fees and expenses for April 2017 e.April 2017 Disbursements: Accounts payable disbursements for the period include check numbers 249919 through 250085, bank drafts, and A C H Payments in the amount of $1,928,890.93 and $335,386.93 for payroll. f.Financial Statements for April 2017 D I SC U SSI O N AN D P OS SI B L E AC T I O N I T E MS 7.Award C ontract for Professional Auditing Services 8.Adopt Resolution 2017.07 - Updating the Schedule of Water and Wastewater Rates and C harges 9.Adopt Resolution 2017.08 - Support placing in nomination J ames Morales, J r. a member of the A ssociation of C alifornia Water A gencies (A C WA) Region 9 Board Member 10.Disposition of Surplus Property RE P O RT S 11.Board of Directors' Reports 12.General Manager/C EO Report • Water Q uality Update 13.Legal C ounsel Report 14.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agend a pac ket are available for p ublic ins p ectio n in the Dis tric t's o ffice lo cated at 31111 G reens pot R d., Highland, during no rmal b usines s hours . Also, s uc h d o cuments are available o n the Dis tric t's web s ite at www.eas tvalley.o rg sub ject to s taff's ab ility to post the d o cuments b efo re the meeting. P urs uant to G overnment C o d e S ec tion 54954.2(a), any reques t fo r a d is ab ility-related mo dific ation or ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve- agendized p ublic meeting s hould b e d irected to the Dis tric t C lerk at (909) 885-4900 at leas t 72 hours prior to said meeting. 1 Minutes 4/12/2017 smg Draft Pending Approval EAST VALLEY WATER DISTRICT April 12, 2017 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 4:30 p.m. PRESENT: Directors: Carrillo, Coats, Morales, Shelton ABSENT: Director Smith STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Steven Nix, Director of Engineering & Operations; Justine Hendricksen, District Clerk; Shayla Gerber, Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 4:30 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Shelton-Carrillo) that the April 12, 2017 agenda be approved as submitted. CLOSED SESSION The Board entered into Closed Session at 4:31 p.m. as provided in the Ralph M. Brown Act Government Code Sections 54956.9(d)(1) to discuss the item(s) listed on the agenda. DIRECTOR SMITH ARRIVED AT 4:32 P.M. THE BOARD RECONVENED THE MEETING AT 5:30 P.M. Mr. Williams led the flag salute. 2 Minutes 4/12/2017 smg ROLL CALL PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2: No reportable action taken. With respect to Item #3: No reportable action taken. With respect to Item #4: No reportable action taken. PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 5 :31 p.m. There being no written or verbal comments, the public participation section was closed. APPROVE THE CANCELLATION OF THE MAY 10, 2017 REGULAR BOARD MEETING M/S/C (Smith-Shelton) that the Board approve the cancellation of the May 10, 2017 regular board meeting. DIRECTORS’ FEES AND EXPENSES FOR MARCH 2017 M/S/C (Smith-Shelton) that the Board approve the Directors’ fees and expenses for March 2017 as submitted. ADOPT RESOLUTION 2017.06 APPROVING A STATEMENT OF INVESTMENT POLICY 7.6 FOR FISCAL YEAR 2017-18 The Chief Financial Officer noted a misprint on the agenda and staff report title, he stated that the Resolution number should have read: 2016.06, as it reads in the body of the staff report, not 2016.16; that there are no changes to the Investment Policy, State statutes require that it be brought to the Board each year for review. M/S/C (Morales-Smith) that the Board adopt Resolution 2017.06 as submitted. APPROVAL OF GENERAL MANAGER/CEO’S 2017 GOALS AND OBJECTIVES The General Manager/CEO requested that the Board consider his proposed Goals and Objectives for 2017; that that the District is a performance based organization and they 3 Minutes 4/12/2017 smg provide a pathway for the rest of the organization to create the budget; he read his proposed Goals and Objectives to the Board and public. Director Morales expressed that he looks forward to another successful year. Vice Chairman Carrillo was pleased that the goals encompassed short-term and long- term planning. Chairman Coats stated that he is pleased with the proposed goals, and is confident that the General Manager/CEO will accomplish them over the next year. M/S/C (Shelton-Carrillo) that the Board approve the 2017 General Manager/CEO’s Goals and Objectives. BOARD OF DIRECTORS’ REPORTS Director Smith reported on the following: on March 28th he attended the Highland Chamber of Commerce meeting and also the Finance and Policy Committee meeting; on April 4th he attended the North Fork Water Company Annual Stockholder’s meeting; on April 11th he attended the Water Conservation Committee meeting; and April 12th he attended the San Bernardino Valley Water Conservation Board meeting. Director Morales reported on the following: on April 4th he attended the San Bernardino Board of Water Commissioners meeting; he attended the Association of California Water Agencies Region 9 meeting where they discussed educational programs; and on April 7th he attended the East Valley Association of Realtors legislative meeting. Vice Chairman Carrillo reported on the following: on March 23rd he attended the Inland Empire Economic Partnership summit; on March 24th he met with the District’s consultant to perform a self-evaluation; on March 28th he attended the Highland Chamber of Commerce meeting; and on April 4th he attended the North Fork Water Company’s Annual Stockholder’s meeting. Director Shelton reported on the following: on March 23rd she attended the LAFCO meeting where they approved the expansion of sphere of influence for the San Bernardino County Fire District to the City of Upland; and on March 28th she attended the Engineering and Operations Committee meeting where they discussed upcoming capital improvement projects; and on April 11th she attended the Water Conservation Committee meeting where she received an update on conservation efforts. Chairman Coats reported on the following: on March 23rd he attended the Inland Empire Economic Partnership State of the Region meeting where they discussed the economy of the Inland Empire during the “Trump Era”; on March 24th he attended the 2X2 Recycled Water Ad-Hoc Committee meeting where they discussed procurement and SRF Funding for the Sterling Natural Resource Center; on March 27th he attended the California Special Districts Association’s (CSDA) Professional Development meeting where they 4 Minutes 4/12/2017 smg discussed upcoming educational opportunities for CSDA members; on March 28th he attended the Engineering and Operations Committee meeting; and on April 4th he attended the North Fork Water Company Annual Stockholder’s meeting where they established per share rate for FY 2017/18. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reported on the following: on April 7th he and Doug Headrick attended a meeting with the State Water Resources Control Board in Sacramento to discuss permitting processes and funding status for the Sterling Natural Resource Center; he gave an update on the Governor’s executive orders pertaining to the drought; that today the District hosted an employee luncheon to recognize the District on receiving the Top Workplace Award; on April 6th staff delivered approximately 75 pairs of shoes to Hunt Elementary School as part on the District’s on-going partnership with San Bernardino Unified School District; and tomorrow he will be meeting with the executive team to discuss the District’s FY 2017-18 Goals and Objectives. The General Manager/CEO informed the Board of upcoming events: • April 17th @ 2:00 p.m. – 2X2 Recycled Water Ad-Hoc Committee meeting • April 19th @ 3:00 p.m. – Special Board meeting to review Program Goals and Objectives • April 22nd @ 9:00 a.m. – Water Efficient Lawns Workshop • June 2nd – Highland Chamber of Commerce will be hosting “Evening Under the Stars” Information only. LEGAL COUNSEL REPORT No reports at this time. BOARD OF DIRECTORS’ COMMENTS Director Morales congratulated Dan Dietz on his retirement. Director Shelton stated that she is pleased to know that staff are working on a reference guide for ratepayers starting new service. Chairman Coats reminded the Board that the regular board meeting scheduled for May 10, 2017 is canceled; and he adjourned the meeting with the following statement: “Help insure your water future by supporting the Sterling Natural Resource Center”. Information only. 5 Minutes 4/12/2017 smg ADJOURN The meeting adjourned at 5:54 p.m. ___________________________ Ronald L. Coats, Board President __________________________ John Mura, Secretary Minutes: 4/19/17 smg 1 Draft Pending Approval EAST VALLEY WATER DISTRICT April 19, 2017 SPECIAL BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 3:00 p.m. Mr. Tompkins led the flag salute. PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: Directors: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Steven Nix, Director of Engineering and Operations; Justine Hendricksen, District Clerk; Shayla Gerber, Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 3:01 p.m. There being no written or verbal comments, the public participation section was closed. FY 2017-18 PROGRAM GOALS AND OBJECTIVES The General Manager/CEO stated that this is the beginning of East Valley Water District’s annual budget and adoption process; that East Valley Water District is a performance based organization and that prior to the budget being created, goals and objectives are created by staff; that the focus when establishing goals was the Agency Ideals and Endeavors and district wide goals. He stated that key considerations that are focused on are: water sources and the quality of water, infrastructure projects and improvements, cyber security and new technology, and fiscal constraints. The General Manager/CEO read the goals and objectives given to him by the Board of Directors. Program Managers and staff reviewed their departments’ FY 2016-2017 accomplishments and presented their proposed FY 2017-18 program Goals and Objectives to the Board. Information only. Minutes: 4/19/17 smg 2 GENERAL MANAGER/CEO REPORTS The General Manager/CEO applauded staff on presenting their goals and objectives to the Board. LEGAL COUNSEL REPORT Legal Counsel stated that in a future board meeting he will address the issue of a recent Supreme Court ruling on personal devices and to what degree that information is subject to public records requests, as well as the re-evaluation of the record retention policy. BOARD OF DIRECTORS’ COMMENTS Director Shelton thanked staff for their presentations. Director Smith stated that he and the General Manager/CEO attended a meeting with business leaders in San Bernardino which may be beneficial to the progress of the Sterling Natural Resource Center. Director Morales commended each department on their presentations to the Board and stated that he is proud of the organization. Vice Chairman Carrillo echoed Director Morales’ comments and added that it was very informative. Chairman Coats praised staff of their hard work and diligence and expressed that they are the reason the District is successful; he commended staff of their presentations; and he closed the meeting with the following statement: “help ensure your water future, support the Sterling Natural Resource Center.” ADJOURN The meeting adjourned at 5:12 p.m. __________________________ Ronald L. Coats, Board President ____________________ John Mura, Secretary 1 Minutes 4/26/2017 smg Draft Pending Approval EAST VALLEY WATER DISTRICT April 26, 2017 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 4:30 p.m. PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Steven Nix, Director of Engineering & Operations; Justine Hendricksen, District Clerk; Shayla Gerber, Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 4:30 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Shelton-Smith) that the April 26, 2017 agenda be approved as submitted. CLOSED SESSION The Board entered into Closed Session at 4:31 p.m. as provided in the Ralph M. Brown Act Government Code Sections 54956.9(d)(1) to discuss the item(s) listed on the agenda. THE BOARD RECONVENED THE MEETING AT 5:30 P.M. Ms. Ronquillo led the flag salute. 2 Minutes 4/26/2017 smg ROLL CALL PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2: No reportable action taken. With respect to Item #3: No reportable action taken. With respect to Item #4: No reportable action taken. PRESENTATIONS AND CEREMONIAL ITEMS The General Manager/CEO recognized the District’s Vehicle Surplus Program recipients: Highland Senior Center, Santa Claus Incorporated and the Highland Boxing Club. PUBLIC COMMENTS Chairman Coats 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. APPROVE THE MARCH 22, 2017 REGULAR BOARD MEETING MINUTES M/S/C (Smith-Carrillo) that the Board approve the March 22, 2017 regular board meeting minutes as submitted. DISBURSEMENTS M/S/C (Smith-Carrillo) that the General Fund Disbursements #249703 through #249917 which were distributed during the period of March 1, 2017 through March 31, 2017, bank drafts and ACH Payments in the amount of $3,203,976.84 and $323,495.25 for payroll and benefit contributions, totaling $3,527,472.09 be approved. ACCEPT AND FILE THE FINANCIAL STATEMENTS AS OF, AND FOR THE PERIOD ENDED, MARCH 31, 2017 M/S/C (Smith-Carrillo) that the Board accept and file the financial statements as of, and for the period ended, March 31, 2017 as submitted. 3 Minutes 4/26/2017 smg ACCEPT AND FILE THE INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2017 M/S/C (Smith-Carrillo) that the Board accept and file the investment report for the quarter ended March 31, 2017. WATER QUALITY UPDATE The General Manager/CEO provided information regarding water quality issues within the District; he stated that the District was beyond the maximum containment level (MCL) guidelines set by the State Water Resources Control Board for trihalomethane (TTHM). He stated that the District took immediate action to address the issue and that current water quality samples are under the MCL required by the State. He announced that the District will be holding a public workshop on May 10 at 7:00 p.m. to address community concerns regarding water quality issues. The General Manager/CEO addressed questions and comments from the Board. Information only. BOARD OF DIRECTORS’ REPORTS Vice Chairman Carrillo reported on the following: on April 17 he attended the 2X2 Recycled Water Ad-Hoc Committee meeting and on April 19 he attended the special board meeting where they reviewed program goals and objectives. Director Morales reported on the following: on April 14 he met with the General Manager/CEO for an operational update; on April 24 he attended Business Intelligence training; and on April 25 he attended the Finance and Human Resources Committee meeting where they discussed a new accounting firm. Director Shelton reported on the following: on April 19 she attended the LAFCO meeting where they discussed the Hesperia Fire Department becoming part of the County, and she attended the special board meeting at the District. Director Smith reported on the following: on April 19 he attended the special board meeting at the District; on April 24 he attended Business Intelligence training and met with the Public Affairs manager for training on public speaking; on April 25 he presented at the Highland Chamber of Commerce meeting and attended the Finance and Human Resources Committee meeting; and April 26 he attended the San Bernardino Valley Water Conservation District Board meeting. Chairman Coats reported on the following: : on April 17 he attended the 2X2 Recycled Water Ad-Hoc Committee meeting where they discussed public outreach, SRF funding and procurement; on April 17 he attended the Association of San Bernardino County Special Districts (ASBCSD) meeting where they presented scholarships to students; on 4 Minutes 4/26/2017 smg April 18 he attended the San Bernardino Valley Municipal Water District board meeting where they discussed district business; and on April 19 he attended the special board meeting at the District. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reported on the following: on April 22 the District hosted a “Water Efficient Lawns” community workshop; on April 25 Director Smith presented at the Highland Chamber of Commerce luncheon; on April 27 he will sit on a panel at the California Water Environment Association (CWEA) conference to discuss design/build water/wastewater projects; on April 14 he will be providing a tour of the District to newly elected Assemblymember Eloise Gomez-Reyes. The General Manager/CEO announced that he will be out of the office May 3-5 to attend the P3 Water Summit Conference. The General Manager/CEO congratulated Vice Chairman Carrillo on the birth of his twin boys. The General Manager/CEO informed the Board of upcoming events: • April 28 @ 11:30 a.m. – Inland Empire Economic Partnership meeting • May 10 – Regular board meeting is canceled • May 10 @ 7:00 p.m. – Community Water Quality Workshop • May 15 @ 9:00 a.m. – 2X2 Recycled Water Ad-Hoc Committee meeting • May 17 @ 3:00 p.m. – EVWD special board meeting • May 18 – Seven Oaks Dam Tour Information only. LEGAL COUNSEL REPORT No reports at this time. BOARD OF DIRECTORS’ COMMENTS Director Shelton stated that she is proud of the District’s Vehicle Surplus Program. Director Morales congratulated Vice Chairman Carrillo on the birth of his twin boys; he wished the General Manager/CEO a happy birthday; and congratulated the recipients of the District’s Vehicle Surplus Program and expressed that the program is for the betterment of the community. Chairman Coats congratulated Vice Chairman Carrillo on the birth of twin boys; he encouraged the public to attend future board meetings; and he adjourned the meeting with the following statement: “Help ensure your water future by supporting the Sterling Natural Resource Center”. 5 Minutes 4/26/2017 smg Information only. ADJOURN The meeting adjourned at 6:23 p.m. ___________________________ Ronald L. Coats, Board President __________________________ John Mura, Secretary R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Jus tine Hendric ks en District C lerk B OAR D AG E N D A S TAF F R E P O RT Agenda Item #6.d. Meeting Date: May 24, 2017 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: Direc tors ' fees and exp ens es for Ap ril 2017 R E C O MM E N D AT IO N: Approve the G overning Bo ard Memb ers ’ fees and expenses fo r April 2017. B AC KG R O UN D / AN ALYS IS : T he Board has instruc ted staff to lis t all d irec tor fees and exp ens es as a s ep arate agenda item to s how full fisc al transparenc y. O nly after Board review and ap p ro val will the c o mpens ation and exp ens es be p aid. AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice (E) – P ractice transparent & acc o untab le fis cal management R E VIE W B Y O T HE R S : T his agenda items has b een reviewed by the Ad minis tratio n department. F IS C AL IMPAC T : T he fis c al impact ass ociated with this agend a item is $7,108.07 which is includ ed in the current fis cal bud get. ATTAC H M E NTS: Description Type Directo rs Fees and Expenses April 2 01 7 Backup Material B OAR D AG E N D A S TAF F R E P O RT Agenda Item #6.e. Meeting Date: May 24, 2017 C o nsent Item To: G overning Board Members F rom: G eneral Manager/C EO S ubject: Ap ril 2017 Disburs ements: Acc o unts p ayable dis b ursements for the p erio d include c hec k numb ers 249919 through 250085, bank drafts, and AC H P ayments in the amount o f $1,928,890.93 and $335,386.93 fo r payroll. R E C O MME N D AT IO N: S taff recommend s that the Bo ard of Directors review and ap p rove the Dis tric t’s expense d is bursements fo r the period April 1, 2017 through April 30, 2017 in the amount of $2,264,277.86. B AC KG R O UND / AN ALYS IS : In the c o ntinued effort to b e fisc ally transparent, the payment regis ter for sup p lies, materials, s ervic es, and p ayro ll fo r Ap ril 2017 is attached for review and approval. T his p ro ces s p ro vid es the Bo ard and the p ublic an opportunity to review the exp ens es o f the Distric t. Ac c ounts P ayab le is p ro ces s ed weekly, while p ayroll is p roc es s ed b i-weekly. Info rmation to jus tify eac h exp enditure is available through the F inance Department. Acc o unts p ayable d isbursements fo r the period inc lud e check numbers 249919 thro ugh 250085, b ank d rafts , and AC H P ayments in the amount o f $1,928,890.93 and $335,386.93 for payroll. S ignific ant exp enses greater than o r equal to $50,000 are further explained belo w: R ec o mmended by: Jo hn Mura G eneral Manager/C EO R es p ectfully s ubmitted: Brian To mpkins C hief F inanc ial O ffic er AG E N C Y ID E ALS AN D E N DE AVO RS: Ideals and Endeavor I I - Maintain An Environment C o mmitted To Elevated P ublic S ervic e (E) - P rac tic e trans p arent & acc ountable fisc al management F IS C AL IMPAC T : S ufficient funds have been budgeted in the adopted F Y 2016-17 Budget. ATTACH M ENTS: Description Type April 2017 P ayment Register Backup Material PAYMENT REGISTER APRIL 1, 2017 - APRIL 30, 2017 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 4/5/2017 249919 BRADLEY CAMPBELL 36.85$ 4/5/2017 249920 CHRISTOPHER TRISTAN 60.86 4/5/2017 249921 EXECUTIVE HOME LOANS 133.27 4/5/2017 249922 LINDA MAGALLANES 61.44 4/5/2017 249923 ROGER VELUZ 57.41 4/5/2017 249924 TONYA HAMILTON 23.02 4/6/2017 249925 APPLEONE EMPLOYMENT SERVICE 852.53 4/6/2017 249926 ARROYO INSURANCE SERVICES 38.00 4/6/2017 249927 AT&T 668.25 4/6/2017 249928 BILL & WAGS INC. 73.13 4/6/2017 249929 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 941.28 4/6/2017 249930 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 510.48 4/6/2017 249931 C&M ELECTRIC 1,506.12 4/6/2017 249932 CITY OF SAN BERNARDINO, PUBLIC WORKS DEPT 2,243.92 4/6/2017 249933 CSR AIR CONDITIONING & HEATING 1,290.00 4/6/2017 249934 DAILY JOURNAL CORPORATION 228.00 4/6/2017 249935 DIB'S SAFE & LOCK SERVICE 514.31 4/6/2017 249936 DIRECTV 244.97 4/6/2017 249937 ELISEO OCHOA 120.00 4/6/2017 249938 ENRIQUE MUNOZ 191.52 4/6/2017 249939 EWING IRRIGATION PRODUCTS INC 385.01 4/6/2017 249940 EXPERIAN 202.24 4/6/2017 249941 EYE MED VISION CARE 1,160.60 4/6/2017 249942 FAIRVIEW FORD SALES,INC 60.37 4/6/2017 249943 GARY YOUNG 547.98 4/6/2017 249944 GE ANALYTICAL INSTRUMENT INC 3,990.00 4/6/2017 249945 GREGORY SAWKA 150.00 4/6/2017 249946 HATFIELD BUICK 72.84 4/6/2017 249947 HENRY SOWLE 547.98 4/6/2017 249948 HIGHLAND EQUIPMENT RENTAL 35.75 4/6/2017 249949 HUB CONSTRUCTION SPECIALTIES 518.72 4/6/2017 249950 JURUPA COMMUNITY SERVICES DISTRICT 193.98 4/6/2017 249951 K & L HARDWARE 200.34 4/6/2017 249952 KIMBERLY REYNOLDS 625.00 4/6/2017 249953 KONICA MINOLTA BUSINESS SOLUTIONS 4,304.62 4/6/2017 249954 MICHAEL REARDON 464.78 4/6/2017 249955 NATIONAL CONSTRUCTION RENTALS 158.49 4/6/2017 249956 PETTY CASH 1.00 4/6/2017 249957 PETTY CASH 91.64 4/6/2017 249958 PLUMBERS DEPOT INC. 326.25 4/6/2017 249959 POMONA VALLEY WORKSHOP 1,207.50 4/6/2017 249960 PULLTARPS MANUFACTURING 504.16 4/6/2017 249961 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 150.00 4/6/2017 249962 SCN, SECURITY COMMUNICATION NETWORK, INC 105.00 4/6/2017 249963 SEAN VU 150.00 PAYMENT REGISTER APRIL 1, 2017 - APRIL 30, 2017 Page 1 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 4/6/2017 249964 SO CAL GAS 516.34 4/6/2017 249965 STAPLES BUSINESS ADVANTAGE 386.41 4/6/2017 249966 WEST VALLEY WATER DISTRICT 2,000.00 4/6/2017 249967 WESTERN MUNICIPAL WATER DISTRICT 800.00 4/6/2017 249968 WILLDAN FINANCIAL SERVICES 2,250.00 4/6/2017 249969 WOW PARTY RENTAL, INC. 169.00 4/6/2017 249970 YARDLEY ORGILL CO. INC. 482.80 4/12/2017 249971 SHANNON RIOS 57.13 4/12/2017 249972 ERAN FATTAL 103.42 4/12/2017 249973 TERESA LEWIS 10.71 4/12/2017 249974 DUKE PARTNERS, LLC 127.00 4/12/2017 249975 DREAMBUILDER CONSTRUCTION CORP 1,705.61 4/13/2017 249976 APPLEONE EMPLOYMENT SERVICE 856.25 4/13/2017 249977 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 189.01 4/13/2017 249978 CHEM-TECH INTERNATIONAL INC 3,314.08 4/13/2017 249979 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 2,700.00 4/13/2017 249980 CULLIGAN OF ONTARIO 50.00 4/13/2017 249981 DIGITAL NETWORKS GROUP, INC. 8,848.00 4/13/2017 249982 FLEET MANAGEMENT DEPARTMENT 363.03 4/13/2017 249983 FMB TRUCK OUTFITTERS, INC 953.37 4/13/2017 249984 FORESTERS FINANCIAL 1,840.00 4/13/2017 249985 FRONTIER COMMUNICATIONS 777.57 4/13/2017 249986 HATFIELD BUICK 1,476.83 4/13/2017 249987 INLAND DESERT SECURITY & COMMUNICATIONS, INC 546.50 4/13/2017 249988 INLAND WATER WORKS SUPPLY CO 2,642.14 4/13/2017 249989 NAPA AUTO PARTS 219.24 4/13/2017 249990 PACIFIC TRUCK EQUIPMENT 131.36 4/13/2017 249991 PALENCIA CONSULTING ENGINEERS 3,800.23 4/13/2017 249992 PATTON'S SALES CORP 19.74 4/13/2017 249993 PETTY CASH 180.00 4/13/2017 249994 POMONA VALLEY WORKSHOP 1,138.50 4/13/2017 249995 RUHNAU RUHNAU CLARK & ASSOCIATES 995.00 4/13/2017 249996 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 18,668.36 4/13/2017 249997 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 17,483.64 4/13/2017 249998 SAN BERNARDINO VALLEY MUNICIPAL WATER DEPARTMENT 22,344.96 4/13/2017 249999 SAN BERNARDINO VALLEY MUNICIPAL WATER DEPARTMENT 54,157.00 4/13/2017 250000 SOUTHERN CALIFORNIA EDISON COMPANY 105,931.58 4/13/2017 250001 STAPLES BUSINESS ADVANTAGE 167.68 4/13/2017 250002 TYLER TECHNOLGIES 440.00 4/13/2017 250003 U.S. BANCORP SERVICE CENTER 15,290.48 4/13/2017 250008 UPLAND ROCK INC. 1,857.00 4/13/2017 250009 VALERO MARKETING & SUPPLY COMP 8,691.23 4/13/2017 250010 YARDLEY ORGILL CO. INC. 1,956.09 4/19/2017 250011 BRITTANY SEQUEIRA 200.00 4/19/2017 250012 CESAR LOMELI 49.98 4/19/2017 250013 FRANCO GARITA 167.60 4/19/2017 250014 GAGANDEEP SINGH 100.00 4/19/2017 250015 HANH NGUYEN 100.00 4/19/2017 250016 JERRY ALMENDAREZ 100.00 4/19/2017 250017 KRISTIN WILSHIRE 100.00 4/19/2017 250018 PHILLIP SEQUIERA 200.00 4/19/2017 250019 ROBERT MORENO 250.00 4/19/2017 250020 SARA BOGDAN 479.99 4/19/2017 250021 STEVEN NGUYEN 100.00 PAYMENT REGISTER APRIL 1, 2017 - APRIL 30, 2017 Page 2 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 4/19/2017 250022 TIM TAGGART 200.00 4/19/2017 250023 DCI INVESTMENTS LLC 137.25 4/19/2017 250024 ELFI THOMAS 38.28 4/19/2017 250025 BCA/DEL ROSA LANES L 9.91 4/19/2017 250026 UBEROUS INC 126.67 4/19/2017 250027 DIONISIO J CARONAN 294.72 4/19/2017 250028 MARY NORVELL 80.63 4/19/2017 250029 JOHNNY RUIZ 95.67 4/19/2017 250030 DCI INVESTMENTS LLC 115.62 4/19/2017 250031 SHERRY GARCIA DEYOUNG 24.12 4/19/2017 250032 GLENN JOHNSON 20.28 4/19/2017 250033 JEANNE BARBOSA 263.01 4/19/2017 250034 XUAN TON 86.03 4/19/2017 250035 LILIANA GARCILAZO 25.24 4/20/2017 250036 APPLEONE EMPLOYMENT SERVICE 868.41 4/20/2017 250037 AT&T 50.00 4/20/2017 250038 BURGESS MOVING & STORAGE 893.43 4/20/2017 250039 CHEM-TECH INTERNATIONAL INC 2,326.85 4/20/2017 250040 FEDERAL EXPRESS CORPORATION 98.24 4/20/2017 250041 FRONTIER COMMUNICATIONS 187.92 4/20/2017 250042 HIGHLAND COMMUNITY NEWS 940.00 4/20/2017 250043 INLAND WATER WORKS SUPPLY CO 1,285.18 4/20/2017 250044 JOHN DRURY 105.00 4/20/2017 250045 KELLY ASSOCIATES MANAGEMENT GROUP LLC 10,000.00 4/20/2017 250046 KONICA MINOLTA 816.37 4/20/2017 250047 NAPA AUTO PARTS 103.44 4/20/2017 250048 PATTON'S SALES CORP 525.37 4/20/2017 250049 PILAR ONATE 9,000.00 4/20/2017 250050 PLUMBERS DEPOT INC. 4,345.02 4/20/2017 250051 POMONA VALLEY WORKSHOP 1,207.50 4/20/2017 250052 RMC WATER AND ENVIRONMENT 11,747.00 4/20/2017 250053 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 642,968.64 4/20/2017 250054 STAPLES BUSINESS ADVANTAGE 291.11 4/20/2017 250055 CHICAGO TITLE COMPANY 234.42 4/25/2017 250056 US POSTAL SERVICE 6,025.51 4/26/2017 250057 JOSEPH CHAVEZ 49.76 4/26/2017 250058 VENTURA AVILA 78.92 4/26/2017 250059 THORIYA NAKOULA 463.97 4/26/2017 250060 ELSA A ZAMORA 49.97 4/26/2017 250061 DOROTEA CARTAGENA 104.48 4/26/2017 250062 IE RENTAL HOMES 23.60 4/26/2017 250063 JOE NIETO 13.77 4/26/2017 250064 MORGAN PICS 1, LLC 21.99 4/26/2017 250065 KELSEA DUNN 14.99 4/26/2017 250066 DEIRDRE O'DONOVAN 920.30 4/26/2017 250067 AFFORDABLE AUTO SERVICE, RAHIB ELAWAR 60.00 4/26/2017 250068 AT&T 668.66 4/26/2017 250069 DARIO FREGOSO 100.00 4/26/2017 250070 DENTAL HEALTH SERVICES 310.80 4/26/2017 250071 DIB'S SAFE & LOCK SERVICE 39.42 4/26/2017 250072 FIRST CHOICE SERVICES 366.12 4/26/2017 250073 FMB TRUCK OUTFITTERS, INC 169.17 4/26/2017 250074 FRONTIER COMMUNICATIONS 472.92 4/26/2017 250075 HUB CONSTRUCTION SPECIALTIES 175.59 PAYMENT REGISTER APRIL 1, 2017 - APRIL 30, 2017 Page 3 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 4/26/2017 250076 INLAND WATER WORKS SUPPLY CO 760.42 4/26/2017 250077 K & L HARDWARE 26.90 4/26/2017 250078 LAWSON PRODUCTS,INC 788.83 4/26/2017 250079 METROPOLITAN LIFE INS CO 142.94 4/26/2017 250080 NINYO & MOORE GEOTECHNICAL SCIENCES CONSULTANTS 1,123.25 4/26/2017 250081 PHOENIX LIFE INSURANCE COMPANY 66.74 4/26/2017 250082 POMONA VALLEY WORKSHOP 1,173.00 4/26/2017 250083 SO CAL GAS 12.82 4/26/2017 250084 SWRCB 52,243.15 4/26/2017 250085 TYLER TECHNOLGIES 1,032.63 BANK DRAFTS 4/3/2017 DFT0002009 MERCHANT BANKCD 565.44 4/3/2017 MISC0001403 J. MURA 401K CONTRIBUTIONS PER CONTRACT 18,000.00 4/4/2017 DFT0001998 CALPERS/ MEDICAL 82,805.27 4/4/2017 DFT0002011 PayNearMe, Inc. 79.60 4/7/2017 DFT0001996 CA SDI Tax 2,606.98 4/7/2017 DFT0001997 CALPERS/ DEFERRED COMPENSATION 38,645.27 4/7/2017 DFT0001999 CALPERS/ RETIREMENT 809.81 4/7/2017 DFT0002000 CALPERS/ RETIREMENT 2,887.70 4/7/2017 DFT0002001 CALPERS/ RETIREMENT 61.38 4/7/2017 DFT0002002 CALPERS/ RETIREMENT 153.05 4/7/2017 DFT0002003 CALPERS/ RETIREMENT 230.02 4/7/2017 DFT0002004 CALPERS/ RETIREMENT 2,823.85 4/7/2017 DFT0002005 CALPERS/ RETIREMENT 12,848.91 4/7/2017 DFT0002006 CALPERS/ RETIREMENT 19,374.98 4/7/2017 DFT0002007 Federal Payroll Tax 32,089.31 4/7/2017 DFT0002008 Medicare 8,254.14 4/7/2017 DFT0002012 Social Security 25.54 4/7/2017 DFT0002013 State Payroll Tax 10,720.97 4/7/2017 DFT0002014 STATE DISBURSEMENT UNIT 3,248.97 4/10/2017 DFT0002017 TRANSFIRST DISCOUNT 8,516.82 4/11/2017 DFT0002015 FORTE, ACH DIRECT INC, ACH FEES 5,273.40 4/11/2017 DFT0002016 PayNearMe, Inc. 183.08 4/14/2017 DFT0002036 VERIFONE INC 66.00 4/18/2017 DFT0002032 PayNearMe, Inc. 187.06 4/19/2017 DFT0002020 CALPERS, UAL PAYMENT 36,902.01 4/19/2017 DFT0002021 CALPERS/ DEFERRED COMPENSATION 15,301.29 4/19/2017 DFT0002022 CALPERS/ RETIREMENT 230.02 4/19/2017 DFT0002023 CALPERS/ RETIREMENT 2,888.39 4/19/2017 DFT0002024 CALPERS/ RETIREMENT 18,846.12 4/19/2017 DFT0002025 CALPERS/ RETIREMENT 2,824.52 4/19/2017 DFT0002026 CALPERS/ RETIREMENT 60.45 4/19/2017 DFT0002027 CALPERS/ RETIREMENT 824.38 4/19/2017 DFT0002028 CALPERS/ RETIREMENT 153.05 4/19/2017 DFT0002029 CALPERS/ RETIREMENT 12,461.51 4/19/2017 DFT0002034 STATE DISBURSEMENT UNIT 3,248.97 4/21/2017 DFT0002019 CA SDI Tax 1,989.50 4/21/2017 DFT0002030 Federal Payroll Tax 27,732.02 4/21/2017 DFT0002031 Medicare 6,549.38 4/21/2017 DFT0002033 Social Security 868.08 4/21/2017 DFT0002035 State Payroll Tax 9,373.66 4/21/2017 DFT0002037 CBB 2,657.67 4/25/2017 DFT0002039 PayNearMe, Inc. 133.33 PAYMENT REGISTER APRIL 1, 2017 - APRIL 30, 2017 Page 4 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 4/28/2017 DFT0002054 PayNearMe, Inc. 39.80 4/28/2017 DFT0002057 VERIFONE INC 66.00 ACH PAYMENTS 4/6/2017 10002564 ADP, LLC 296.95 4/6/2017 10002565 ADS ENVIRONMENTAL SERVICES 1,600.00 4/6/2017 10002566 ANTHONY'S IRRIGATION 7,465.00 4/6/2017 10002567 CINTAS CORPORATION 97.92 4/6/2017 10002568 CLEARFLY COMMUNATIONS 1,331.09 4/6/2017 10002569 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 189.00 4/6/2017 10002570 DAVID HERNANDEZ 360.79 4/6/2017 10002571 EVWD EMPLOYEES EVENTS ASSOC 337.50 4/6/2017 10002572 FSA Only/East Valley Water District 1,891.72 4/6/2017 10002573 G & K SERVICES, CO. 603.38 4/6/2017 10002574 GARY STURDIVAN 564.90 4/6/2017 10002575 GONZALEZ, QUINTANA & HUNTER, LLC 4,000.00 4/6/2017 10002576 GORDON GRANT 484.34 4/6/2017 10002577 GSSI, GENERAL SECURITY SERVICES, INC. 1,295.00 4/6/2017 10002578 JANA FOX 504.55 4/6/2017 10002579 LINCOLN NATIONAL LIFE INS CO. 2,018.88 4/6/2017 10002580 MERLIN JOHNSON CONSTRUCTION 76,850.00 4/6/2017 10002581 MICHAEL HENDERSON 549.78 4/6/2017 10002582 MIKE J. ROQUET CONSTRUCTION INC 6,456.00 4/6/2017 10002583 MILLER SPATIAL SERVICES, LLC 7,140.00 4/6/2017 10002584 REBECCA KASTEN 650.00 4/6/2017 10002585 STEVEN FARRINGTON 650.00 4/6/2017 10002586 THOMAS P ORTON 402.83 4/6/2017 10002587 TROY ALARM, INC. 180.00 4/6/2017 10002588 UNDERGROUND SERVICE ALERT 208.50 4/6/2017 10002589 VERIZON WIRELESS 4,321.29 4/6/2017 10002591 WAXIE SANITARY SUPPLY 246.30 4/13/2017 10002592 AZTECA SYSTEMS, INC/ CITYWORKS 30,000.00 4/13/2017 10002593 BOOT BARN, INC 167.39 4/13/2017 10002594 CLIFF'S PEST CONTROL 240.00 4/13/2017 10002595 DANGELO CO INC 3,887.97 4/13/2017 10002596 FERGUSON ENTERPRISES, INC. 2,548.29 4/13/2017 10002597 FLEET SERVICES /COLTON TRUCK 32.33 4/13/2017 10002598 GSSI, GENERAL SECURITY SERVICES, INC. 1,295.00 4/13/2017 10002599 HIGHLAND AREA CHAMBER 20.00 4/13/2017 10002600 JC LAW FIRM 42,491.56 4/13/2017 10002602 JOHN WITHERS ASSOCIATES 6,000.00 4/13/2017 10002603 KENNEDY/JENKS CONSULTANTS 86,884.49 4/13/2017 10002604 LEGEND PUMP AND WELL 454.41 4/13/2017 10002605 MCCRAY'S ENTERPRISES 2,573.94 4/13/2017 10002606 MILLER SPATIAL SERVICES, LLC 6,015.00 4/13/2017 10002607 NETWORK FLEET, INC 124.75 4/13/2017 10002608 P.A.D. PALM AUTO DETAIL 1,260.00 4/13/2017 10002609 PLUS 1 PERFORMANCE 19.05 4/13/2017 10002610 SAFETY COMPLIANCE COMPANY 200.00 4/13/2017 10002611 SHRED-IT US JV LLC 222.48 4/13/2017 10002612 SMART UTILITY SYSTEMS LLC 18,875.00 4/13/2017 10002613 STUBBIES PROMOTIONS INC 4,099.95 4/13/2017 10002614 TELEPACIFIC COMMUNICATIONS 2,831.42 4/13/2017 10002615 TIM VITRANO 129.95 PAYMENT REGISTER APRIL 1, 2017 - APRIL 30, 2017 Page 5 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 4/13/2017 10002616 TROY ALARM, INC. 264.00 4/13/2017 10002617 VULCAN MATERIALS COMPANY 2,699.67 4/13/2017 10002618 WATEREUSE ASSOCIATION 2,996.00 4/20/2017 10002619 AIRGAS, USA LLC 169.75 4/20/2017 10002620 ANDREW MATA 75.41 4/20/2017 10002621 ASHOK K. DHINGRA 12,162.74 4/20/2017 10002622 CLIFF'S PEST CONTROL 83.00 4/20/2017 10002623 CLINICAL LAB OF S B 4,640.75 4/20/2017 10002624 CORELOGIC SOLUTIONS INC. 315.00 4/20/2017 10002625 EVWD EMPLOYEES EVENTS ASSOC 337.50 4/20/2017 10002626 EXCEL LANDSCAPE, ICN 2,610.00 4/20/2017 10002627 EZEQUIEL ELECTRIC, INC. 5,567.00 4/20/2017 10002628 FERGUSON ENTERPRISES, INC. 1,077.50 4/20/2017 10002629 FLEET SERVICES /COLTON TRUCK 13.01 4/20/2017 10002630 FSA Only/East Valley Water District 1,891.72 4/20/2017 10002631 G & K SERVICES, CO. 2,228.84 4/20/2017 10002633 GONZALEZ, QUINTANA & HUNTER, LLC 4,000.00 4/20/2017 10002634 GSSI, GENERAL SECURITY SERVICES, INC. 1,295.00 4/20/2017 10002635 HAAKER EQUIPMENT COMPANY 129.00 4/20/2017 10002636 INFOSEND, INC 46,894.67 4/20/2017 10002637 LEGEND PUMP AND WELL 1,823.00 4/20/2017 10002638 MINUTEMAN PRESS OF RANCHO CUCAMONGA 862.75 4/20/2017 10002639 NEOPOST USA INC 366.79 4/26/2017 10002640 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC. 645.00 4/26/2017 10002641 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 145.35 4/26/2017 10002642 CINTAS CORPORATION 140.27 4/26/2017 10002643 DANGELO CO INC 591.59 4/26/2017 10002644 EZEQUIEL ELECTRIC, INC. 1,208.00 4/26/2017 10002645 FERGUSON ENTERPRISES, INC. 23,166.25 4/26/2017 10002646 GSSI, GENERAL SECURITY SERVICES, INC. 1,295.00 4/26/2017 10002647 HAAKER EQUIPMENT COMPANY 477.51 4/26/2017 10002648 JOSE MILLAN 2,000.00 4/26/2017 10002649 LEGEND PUMP AND WELL 1,642.50 4/26/2017 10002650 OFFICIAL PAYMENTS CORP. 35.65 4/26/2017 10002651 POWERSTRIDE BATTERY CO. 175.33 4/26/2017 10002652 PRINCIPAL FINANCIAL GROUP 8,268.60 4/26/2017 10002653 ROW TRAFFIC SAFETY, INC 25.06 4/26/2017 10002654 SCHUBERT ENTERPRISES INC 110.00 4/26/2017 10002655 WAXIE SANITARY SUPPLY 89.90 4/26/2017 10002656 WESTERN WEATHER GROUP INC 249.00 TOTAL 1,928,890.93$ PAYMENT REGISTER APRIL 1, 2017 - APRIL 30, 2017 Page 6 of 6 R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer B OAR D AG E N D A S TAF F R E P O RT Agenda Item #6.f. Meeting Date: May 24, 2017 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: F inanc ial S tatements fo r April 2017 R E C O MM E N D AT IO N: S taff recommends that the Board of Direc to rs acc ep t and file the attached financ ial s tatements as o f, and fo r the p eriod end ed , Ap ril 30, 2017. B AC KG R O UN D / AN ALYS IS : Inc luded herewith fo r the Board’s review is a summary of Eas t Valley Water Dis trict’s financial res ults , as o f April 30, 2017. AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice (E) - P ractice transparent & acc o untab le fis cal management F IS C AL IMPAC T : T here is no fis c al impact ass ociated with this agenda item. ATTAC H M E NTS: Description Type April 20 17 Financial Statement M onthly Revie w Backup Material April 20 17 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW APRIL 30, 2017 page | 1 The following is a highlight summary of the District’s financial results as of April 30, 2017. Statement of Net Position Total assets at April 30, 2017 are $183.6 million. CLASSIFICATION WATER WASTEWATER DISTRICT TOTAL Cash and Investments $ 15,100,166 $ 3,656,191 $ 18,756,357 Utility Plant, Net 109,365,064 20,172,867 129,537,931 Other Assets 22,469,474 12,881,553 35,351,027 Current Liabilities 5,122,409 381,943 5,504,352 Long Term Liabilities 50,430,973 6,883,092 57,314,065 Beginning Net Position 83,502,222 27,982,873 111,485,096 Change in Equity 7,879,100 1,462,703 9,341,803 Total Net Position $ 91,381,322 $ 29,445,576 $ 120,826,898 Below is a summary of the District’s net position as of April 30, 2017. 5% 45% 2% 17% 31% WATER 5% 45% 1% 9% 40% WASTEWATER Current Assets Non-Current Assets Current Liabilities Non-Current Liabilities Net Position FINANCIAL STATEMENTS MONTHLY REVIEW APRIL 30, 2017 page | 2 Cash and Investments are $18.8 million for the month of April, a decrease of $0.5 million from the prior month. The decrease is attributed to the 2010 & 2013 scheduled bond interest payments. $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 CASH & INVESTMENTS Restricted Unrestricted Comparing current assets to current liabilities, the District has a current ratio at April 30, 2017 of 3.29 to 1, with 2 to 1 being an indication of sound financial condition. Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the period ending April 30, 2017. First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for revenues and Expense by Program. Third is a Budget to Actual presentation of program expense detail. WATER WASTEWATER DISTRICT TOTAL Revenue $ 20,843,582 $ 10,751,959 $ 31,595,540 Expense 12,964,482 9,289,255 22,253,737 FINANCIAL STATEMENTS MONTHLY REVIEW APRIL 30, 2017 page | 3 Water Sales for the month ending April 30, 2017 were $939,585, $61,585 or 7% over staff’s projections for the month. The billing periods during the month of April experienced an average temperature of 66 degrees, additionally the average Evapotranspiration Rates (ETo) for the period was 5.39 inches which was (0.62) inches less, compared to this time last year. Water sales year-to-date are under the amended projections by $48,778. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Water Sale by Tier Tier 1 Tier 2 Tier 3 FY 2016-17 Projection FINANCIAL STATEMENTS MONTHLY REVIEW APRIL 30, 2017 page | 4 The charts below provide a visual of the external factors that influences the District’s Water Budget Based Rates. 50% 55% 60% 65% 70% 75% 80% 85% 90% Average Air Temperature by Month FY 2015-16 Avg Temp, Highland CA FY 2016-17 Avg Temp, Highland CA - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Evapotranspiration Rate (ETo) by Month FY 2015-16 ETo FY 2016-17 ETo FINANCIAL STATEMENTS MONTHLY REVIEW APRIL 30, 2017 page | 5 The chart below is a comparative illustration of current Water Revenue compared to last year’s Water Revenue. As noted in the graph Water Sales and Meter Charges increased over last year by 50,446 (6%). $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 4/30/2016 4/30/2017 Comparative Monthly Water Revenue (Water Sales & Meter Charge) Meter Tier 1 Tier 2 Tier 3 FINANCIAL STATEMENTS MONTHLY REVIEW APRIL 30, 2017 page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2015-16 and FY 2016-17. The variance in Source of Supply is due to the District’s annual payment to San Bernardino Valley Municipal Water District for water. The purchase was adopted with the FY 2016-17 Operating Budget. FINANCIAL STATEMENTS MONTHLY REVIEW APRIL 30, 2017 page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2015-16 and FY 2016-17. The largest increase is in Treatment which increased $561K compared to last year due to the new Wastewater Treatment rate increases imposed by the City of San Bernardino effective July 1, 2016. WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 7,058,233.61$ 1,101,684.51$ 8,159,918.12$ 02 Investments 3,516,270.52 1,872,105.98 5,388,376.50 03 Accounts Receivable, Net 3,481,875.93 246,815.66 3,728,691.59 04 ‐Interest Receivable 5,951.06 3,377.19 9,328.25 14*05 Other Receivables 383,332.37 - 383,332.37 06 Due from other Governments 16,144.57 - 16,144.57 08 Inventory 294,581.03 6,721.16 301,302.19 09 Prepaid Expenses 99,262.72 30,245.07 129,507.79 14,855,651.81 3,260,949.57 18,116,601.38 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 4,525,662.00 682,400.65 5,208,062.65 11 Capital Assets not being Depreciated 17,056,912.16 12,319,393.74 29,376,305.90 13 Capital Assets, Net 109,365,064.08 20,172,866.71 129,537,930.79 130,947,638.24 33,174,661.10 164,122,299.34 Total Assets:145,803,290.05 36,435,610.67 182,238,900.72 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 156,417.49 - 156,417.49 25 Deferred Outflows - Pensions 974,996.65 275,000.35 1,249,997.00 146,934,704.19 36,710,611.02 183,645,315.21 Current Liabilities: 22 Accounts Payable and Accrued Expenses 670,766.79 29,959.97 700,726.76 23 Accrued Payroll and Benefits 317,241.46 85,834.82 403,076.28 15 Customer Service Deposits 1,664,706.81 - 1,664,706.81 16 Construction Advances and Retentions 106,000.00 3,500.00 109,500.00 17 Accrued Interest Payable 430,093.03 55,881.25 485,974.28 18 Current Portion of Compensated Absences 258,472.59 93,808.69 352,281.28 19 Current Portion of Long-Term Debt 1,675,128.45 112,958.00 1,788,086.45 5,122,409.13 381,942.73 5,504,351.86 Non-Current Liabilities: 20 Compensated Absences, less current portion 125,820.98 25,784.74 151,605.72 28 Net Pension Liability 6,183,974.30 1,744,198.70 7,928,173.00 21 Long Term Debt, Less Current Portion 43,455,535.63 4,753,655.80 48,209,191.43 27 Other Liabilities 7,261.71 173,755.00 181,016.71 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 658,380.29 185,697.71 844,078.00 50,430,972.91 6,883,091.95 57,314,064.86 55,553,382.04 7,265,034.68 62,818,416.72 31 Equity 83,502,222.37 27,982,873.18 111,485,095.55 83,502,222.37 27,982,873.18 111,485,095.55 Tot Total Revenue 20,843,581.73 10,751,958.59 31,595,540.32 Tot Total Expense 12,964,481.95 9,289,255.43 22,253,737.38 7,879,099.78 1,462,703.16 9,341,802.94 91,381,322.15 29,445,576.34 120,826,898.49 146,934,704.19$ 36,710,611.02$ 183,645,315.21$ Unaudited As of April 30, 2017 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Page 1 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 939,584.91$ 11,590,778.07$ 13,800,000.00$ -$ -$ -$ 13,800,000.00$ 2,209,221.93$ 42 Meter Charges 742,060.23 7,406,754.53 8,910,000.00 - - - 8,910,000.00 1,503,245.47 43 Penalties 28,716.55 475,408.63 515,000.00 3,027.06 33,153.62 170,000.00 685,000.00 176,437.75 44 Wastewater System Charges - - - 374,151.47 3,906,775.60 4,460,000.00 4,460,000.00 553,224.40 45 Wastewater Treatment Charges - - - 679,197.74 6,714,074.44 7,610,000.00 7,610,000.00 895,925.56 46 Other Operating Revenue 20,227.26 623,087.21 470,000.00 - 60,013.96 70,000.00 540,000.00 (143,101.17) 47 Non Operating Revenue 19,794.99 717,795.66 120,000.00 - 20,180.35 22,000.00 142,000.00 (595,976.01) 48 Gain or Loss on Disposition 7,425.63 29,757.63 - 17,760.62 17,760.62 - - (47,518.25) 56 Benefits 902.13 1,200.89 - 19.90 89.35 - - (1,290.24) 68 Depreciation - - - - - - - Revenue Total: 1,757,809.57 20,843,581.73 23,815,000.00 1,074,136.89 10,751,958.59 12,332,000.00 36,147,000.00 4,551,459.68 - - - - - Expense by Category 51 Labor 334,696.26 3,669,634.68 4,596,900.00 69,299.89 988,688.94 1,337,100.00 5,934,000.00 1,275,676.38 56 Benefits 163,852.31 1,635,326.58 1,945,400.00 37,382.61 379,618.24 491,600.00 2,437,000.00 422,055.18 63 Contract Services 194,657.68 2,107,920.13 3,280,400.00 796,016.95 7,322,941.70 8,505,450.00 11,785,850.00 2,354,988.17 65 Professional Development 8,209.32 153,771.74 266,900.00 3,629.70 55,736.41 102,100.00 369,000.00 159,491.85 53 Overtime 26,161.86 252,765.21 258,700.00 933.85 11,034.89 17,300.00 276,000.00 12,199.90 62 Materials and Supplies 48,932.86 825,759.56 1,463,900.00 10,348.71 107,810.34 154,400.00 1,618,300.00 684,730.10 64 Utilities 189,717.28 1,532,278.23 2,364,550.00 11,098.99 99,362.70 175,300.00 2,539,850.00 908,209.07 52 Temporary Labor 2,169.44 39,510.54 20,300.00 929.75 15,097.08 8,700.00 29,000.00 (25,607.62) 67 Other 5,941.56 199,907.30 208,900.00 2,566.23 85,174.22 89,100.00 298,000.00 12,918.48 54 Standby 2,524.00 29,040.75 33,000.00 96.00 2,165.91 2,000.00 35,000.00 3,793.34 61 Water Supply 800.00 865,245.37 937,000.00 - - - 937,000.00 71,754.63 71 -Debt Service 775,506.25 1,653,321.86 4,007,000.00 109,862.50 221,625.00 317,000.00 4,324,000.00 2,449,053.14 81 -Capital Improvement - - 1,471,000.00 - - 2,666,000.00 4,137,000.00 4,137,000.00 82 -Capital Outlay - - 480,519.00 - - 165,317.00 645,836.00 645,836.00 83 -Accounting Income Add back - - - - - - - - Expense Total: 1,753,168.82 12,964,481.95 21,334,469.00 1,042,165.18 9,289,255.43 14,031,367.00 35,365,836.00 13,112,098.62 Total Surplus (Deficit): 4,640.75$ 7,879,099.78$ -$ 31,971.71$ 1,462,703.16$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended April 30, 2017 WATER WASTEWATER DISTRICT WIDE Page 2 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 939,584.91$ 11,590,778.07$ 13,800,000.00$ -$ -$ -$ 13,800,000.00$ 2,209,221.93$ 42 Meter Charges 742,060.23 7,406,754.53 8,910,000.00 - - - 8,910,000.00 1,503,245.47 43 Penalties 28,716.55 475,408.63 515,000.00 3,027.06 33,153.62 170,000.00 685,000.00 176,437.75 44 Wastewater System Charges - - - 374,151.47 3,906,775.60 4,460,000.00 4,460,000.00 553,224.40 45 Wastewater Treatment Charges - - - 679,197.74 6,714,074.44 7,610,000.00 7,610,000.00 895,925.56 46 Other Operating Revenue 20,227.26 623,087.21 470,000.00 - 60,013.96 70,000.00 540,000.00 (143,101.17) 47 Non Operating Revenue 19,794.99 717,795.66 120,000.00 - 20,180.35 22,000.00 142,000.00 (595,976.01) Revenue Total: 1,757,809.57 20,843,581.73 23,815,000.00 1,074,136.89 10,751,958.59 12,332,000.00 36,147,000.00 4,551,459.68 Progra 1000 - Board of Directors 17,497.04 89,026.56 148,400.00 7,025.54 36,045.32 63,600.00 212,000.00 86,928.12 Progra 2000 - General Administration 92,526.30 742,384.34 930,900.00 37,542.51 302,318.71 364,700.00 1,295,600.00 250,896.95 Progra 2100 - Human Resources 23,186.94 435,005.74 528,800.00 9,914.31 184,354.93 224,500.00 753,300.00 133,939.33 Progra 2200 - Public Affairs 20,105.37 242,102.92 355,570.00 17,606.81 229,079.92 329,900.00 685,470.00 214,287.16 Progra 2300 - Conservation 50,374.94 508,347.92 1,124,150.00 - - - 1,124,150.00 615,802.08 Progra 3000 - Finance 46,135.83 663,806.55 788,000.00 19,772.22 285,515.16 388,550.00 1,176,550.00 227,228.29 Progra 3200 - Information Technology 36,046.85 378,006.72 540,100.00 15,448.56 168,573.63 232,200.00 772,300.00 225,719.65 Progra 3300 - Customer Service 94,335.65 929,786.10 1,297,380.00 26,002.47 298,083.99 401,800.00 1,699,180.00 471,309.91 Progra 3400 - Meter Service 23,801.88 266,826.48 348,000.00 149.90 7,280.07 - 348,000.00 73,893.45 Progra 4000 - Engineering 45,536.03 636,056.41 892,650.00 21,215.96 259,394.05 371,250.00 1,263,900.00 368,449.54 Progra 5000 - Water Production 234,914.49 3,145,652.03 4,139,850.00 - - - 4,139,850.00 994,197.97 Progra 5100 - Water Treatment 35,329.42 541,227.44 827,000.00 - - - 827,000.00 285,772.56 Progra 5200 - Water Quality 27,152.06 304,167.24 407,000.00 - - - 407,000.00 102,832.76 Progra 6000 - Field Maintenance Administration 12,328.78 139,025.26 194,400.00 1,873.53 27,377.15 21,600.00 216,000.00 49,597.59 Progra 6100 - Water Maintenance 147,864.97 1,441,514.78 1,759,000.00 - (21.00) - 1,759,000.00 317,506.22 Progra 6200 - Wastewater Maintenance - - - 763,104.95 7,104,346.48 8,231,850.00 8,231,850.00 1,127,503.52 Progra 7000 - Facilities Maintenance 35,026.11 498,533.11 604,250.00 8,114.98 109,195.28 198,600.00 802,850.00 195,121.61 Progra 7100 - Fleet Maintenance 35,499.91 349,690.49 490,500.00 4,530.94 56,086.74 54,500.00 545,000.00 139,222.77 Progra 8000 - Capital 775,506.25 1,653,321.86 5,958,519.00 109,862.50 221,625.00 3,148,317.00 9,106,836.00 7,231,889.14 Total Surplus (Deficit):4,640.75$ 7,879,099.78$ -$ 31,971.71$ 1,462,703.16$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended April 30, 2017 Unaudited WATER WASTEWATER DISTRICT WIDE Page 3 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 939,584.91$ 11,590,778.07$ 13,800,000.00$ -$ -$ -$ 13,800,000.00$ 2,209,221.93$ 42 Meter Charges 742,060.23 7,406,754.53 8,910,000.00 - - - 8,910,000.00 1,503,245.47 43 Penalties 28,716.55 475,408.63 515,000.00 3,027.06 33,153.62 170,000.00 685,000.00 176,437.75 44 Wastewater System Charges - - - 374,151.47 3,906,775.60 4,460,000.00 4,460,000.00 553,224.40 45 Wastewater Treatment Charges - - - 679,197.74 6,714,074.44 7,610,000.00 7,610,000.00 895,925.56 46 Other Operating Revenue 20,227.26 623,087.21 470,000.00 - 60,013.96 70,000.00 540,000.00 (143,101.17) 47 Non Operating Revenue 19,794.99 717,795.66 120,000.00 - 20,180.35 22,000.00 142,000.00 (595,976.01) 48 Gain or Loss on Disposition 7,425.63 29,757.63 - 17,760.62 17,760.62 - - (47,518.25) 56 Benefits 902.13 1,200.89 - 19.90 89.35 - - (1,290.24) 68 Depreciation - - - - - - - Revenue Total: 1,757,809.57 20,843,581.73 23,815,000.00 1,074,136.89 10,751,958.59 12,332,000.00 36,147,000.00 4,551,459.68 Program: 1000 - Board of Directors - - - 51 Labor 5,390.00$ 53,999.87$ 73,500.00$ 2,310.00$ 23,142.85$ 31,500.00$ 105,000.00$ 27,857.28$ 56 Benefits 3,321.26 14,544.72 28,700.00 1,056.69 5,593.36 12,300.00 41,000.00 20,861.92 63 Contract Services 7,000.00 8,057.00 7,700.00 3,000.00 3,453.00 3,300.00 11,000.00 (510.00) 65 Professional Development 1,785.78 12,424.97 38,500.00 658.85 3,856.11 16,500.00 55,000.00 38,718.92 Program: 1000 - Board of Directors Total: 17,497.04 89,026.56 148,400.00 7,025.54 36,045.32 63,600.00 212,000.00 86,928.12 Program: 2000 - General Administration - - - 51 Labor 23,261.00 294,640.33 405,700.00 9,331.75 125,404.41 165,300.00 571,000.00 150,955.26 53 Overtime 88.91 1,252.18 - 38.11 536.61 - - (1,788.79) 56 Benefits 25,925.12 156,473.87 186,200.00 9,636.38 50,881.40 69,800.00 256,000.00 48,644.73 62 Materials and Supplies 112.11 2,318.42 7,000.00 48.05 1,053.62 3,000.00 10,000.00 6,627.96 63 Contract Services 39,115.69 212,041.90 246,600.00 16,763.87 92,017.96 90,000.00 336,600.00 32,540.14 64 Utilities 177.96 1,547.82 3,500.00 76.27 663.38 1,500.00 5,000.00 2,788.80 65 Professional Development 3,845.51 74,109.82 81,900.00 1,648.08 31,761.33 35,100.00 117,000.00 11,128.85 Program: 2000 - General Administration Total: 92,526.30 742,384.34 930,900.00 37,542.51 302,318.71 364,700.00 1,295,600.00 250,896.95 Program: 2100 - Human Resources - - - - 51 Labor 10,570.56 115,866.49 140,700.00 4,530.25 49,657.08 60,300.00 201,000.00 35,476.43 52 Temporary Labor 365.40 6,388.65 8,400.00 156.60 2,737.99 3,600.00 12,000.00 2,873.36 53 Overtime 90.85 1,135.80 2,100.00 38.94 486.79 900.00 3,000.00 1,377.41 56 Benefits 4,846.90 56,745.62 74,800.00 2,077.18 23,015.06 29,200.00 104,000.00 24,239.32 62 Materials and Supplies - 341.45 4,900.00 - 146.34 2,100.00 7,000.00 6,512.21 63 Contract Services 951.54 37,493.41 65,500.00 407.81 16,068.70 28,800.00 94,300.00 40,737.89 64 Utilities 26.61 250.75 700.00 11.40 107.42 300.00 1,000.00 641.83 65 Professional Development 347.18 18,061.15 23,800.00 125.90 6,968.83 10,200.00 34,000.00 8,970.02 67 Other 5,987.90 198,722.42 207,900.00 2,566.23 85,166.72 89,100.00 297,000.00 13,110.86 Program: 2100 - Human Resources Total: 23,186.94 435,005.74 528,800.00 9,914.31 184,354.93 224,500.00 753,300.00 133,939.33 Program: 2200 - Public Affairs - - - - 51 Labor 10,108.24 122,275.95 148,000.00 8,650.54 99,636.06 130,000.00 278,000.00 56,087.99 52 Temporary Labor - 478.80 - - 205.20 - - (684.00) 53 Overtime 51.92 2,564.23 3,500.00 51.91 2,207.89 3,500.00 7,000.00 2,227.88 Month Ended April 30, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Page 4 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended April 30, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 56 Benefits 3,546.67 44,013.94 53,000.00 2,505.86 28,378.46 43,000.00 96,000.00 23,607.60 62 Materials and Supplies 2,387.38 22,155.08 82,500.00 2,387.37 45,490.65 82,500.00 165,000.00 97,354.27 63 Contract Services 96.04 34,081.00 47,070.00 96.05 36,554.43 49,400.00 96,470.00 25,834.57 64 Utilities 3,086.20 12,130.29 11,500.00 3,086.18 12,198.03 11,500.00 23,000.00 (1,328.32) 65 Professional Development 828.92 4,403.63 10,000.00 828.90 4,409.20 10,000.00 20,000.00 11,187.17 Program: 2200 - Public Affairs Total: 20,105.37 242,102.92 355,570.00 17,606.81 229,079.92 329,900.00 685,470.00 214,287.16 Program: 2300 - Conservation - - - - 51 Labor 12,313.12 151,425.00 198,000.00 - - - 198,000.00 46,575.00 52 Temporary Labor - 4,284.00 - - - - - (4,284.00) 53 Overtime - 1,692.39 8,000.00 - - - 8,000.00 6,307.61 56 Benefits 2,525.19 30,025.21 39,000.00 - - - 39,000.00 8,974.79 62 Materials and Supplies 12,155.25 268,715.73 524,000.00 - - - 524,000.00 255,284.27 63 Contract Services 23,284.96 48,868.45 302,150.00 - - - 302,150.00 253,281.55 64 Utilities 72.42 773.29 41,000.00 - - - 41,000.00 40,226.71 65 Professional Development 24.00 2,563.85 12,000.00 - - - 12,000.00 9,436.15 Program: 2300 - Conservation Total: 50,374.94 508,347.92 1,124,150.00 - - - 1,124,150.00 615,802.08 Program: 3000 - Finance - - - - 51 Labor 30,221.95 342,034.94 448,000.00 12,952.25 145,741.35 192,000.00 640,000.00 152,223.71 52 Temporary Labor - 13,939.00 9,800.00 - 5,973.85 4,200.00 14,000.00 (5,912.85) 53 Overtime 1,193.71 6,450.63 2,100.00 511.57 2,426.23 900.00 3,000.00 (5,876.86) 56 Benefits 12,615.01 153,566.51 178,500.00 5,406.20 64,407.70 76,500.00 255,000.00 37,025.79 62 Materials and Supplies 51.51 6,778.95 4,200.00 22.08 2,886.63 1,800.00 6,000.00 (3,665.58) 63 Contract Services 1,704.18 132,944.26 124,800.00 730.35 60,926.63 104,750.00 229,550.00 35,679.11 64 Utilities 117.99 1,338.19 2,800.00 50.57 573.51 1,200.00 4,000.00 2,088.30 65 Professional Development 231.48 6,018.22 16,800.00 99.20 2,579.26 7,200.00 24,000.00 15,402.52 67 Other - 735.85 1,000.00 - - - 1,000.00 264.15 Program: 3000 - Finance Total: 46,135.83 663,806.55 788,000.00 19,772.22 285,515.16 388,550.00 1,176,550.00 227,228.29 Program: 3200 - Information Technology - - - - 51 Labor 15,298.09 158,459.12 203,000.00 6,556.31 73,735.31 87,000.00 290,000.00 57,805.57 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 4,609.26 49,005.16 72,800.00 1,975.31 24,334.77 31,200.00 104,000.00 30,660.07 62 Materials and Supplies 144.64 27,248.94 19,300.00 61.99 9,137.09 9,000.00 28,300.00 (8,086.03) 63 Contract Services 15,234.04 130,294.72 225,400.00 6,528.88 55,795.55 96,600.00 322,000.00 135,909.73 64 Utilities 217.69 2,317.82 3,500.00 93.30 993.35 1,500.00 5,000.00 1,688.83 65 Professional Development 543.13 10,680.96 16,100.00 232.77 4,577.56 6,900.00 23,000.00 7,741.48 Program: 3200 - Information Technology Total: 36,046.85 378,006.72 540,100.00 15,448.56 168,573.63 232,200.00 772,300.00 225,719.65 Program: 3300 - Customer Service - - - - 51 Labor 22,014.45 237,210.62 318,100.00 9,594.70 107,176.48 144,900.00 463,000.00 118,612.90 52 Temporary Labor 1,804.04 13,850.29 2,100.00 773.15 5,935.84 900.00 3,000.00 (16,786.13) 53 Overtime 584.99 2,275.74 3,500.00 250.71 975.31 1,500.00 5,000.00 1,748.95 56 Benefits 11,943.97 123,508.11 163,800.00 5,118.76 61,140.52 70,200.00 234,000.00 49,351.37 Page 5 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended April 30, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 62 Materials and Supplies 154.65 2,507.46 9,200.00 66.29 1,074.65 1,800.00 11,000.00 7,417.89 63 Contract Services 50,994.51 494,116.77 680,680.00 7,255.52 98,385.80 131,500.00 812,180.00 219,677.43 64 Utilities 6,867.78 53,985.50 107,100.00 2,943.34 23,136.65 45,900.00 153,000.00 75,877.85 65 Professional Development 17.60 1,882.58 12,900.00 - 251.24 5,100.00 18,000.00 15,866.18 67 Other (46.34) 449.03 - - 7.50 - - (456.53) Program: 3300 - Customer Service Total: 94,335.65 929,786.10 1,297,380.00 26,002.47 298,083.99 401,800.00 1,699,180.00 471,309.91 Program: 3400 - Meter Service - - - - 51 Labor 16,027.53 177,873.12 210,000.00 - - - 210,000.00 32,126.88 53 Overtime 290.16 5,000.60 20,000.00 - - - 20,000.00 14,999.40 56 Benefits 7,282.99 73,872.16 104,000.00 149.90 7,280.07 - 104,000.00 22,847.77 62 Materials and Supplies - 1,549.80 4,000.00 - - - 4,000.00 2,450.20 63 Contract Services 131.49 7,855.87 8,000.00 - - - 8,000.00 144.13 64 Utilities 69.71 674.93 2,000.00 - - - 2,000.00 1,325.07 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 23,801.88 266,826.48 348,000.00 149.90 7,280.07 - 348,000.00 73,893.45 Program: 4000 - Engineering - - - - 51 Labor 25,855.09 280,222.92 427,200.00 14,509.63 157,325.09 171,800.00 599,000.00 161,451.99 52 Temporary Labor - 569.80 - - 244.20 - - (814.00) 53 Overtime - 1,524.87 1,400.00 - 653.50 600.00 2,000.00 (178.37) 56 Benefits 14,808.42 153,837.52 190,400.00 6,346.21 66,610.10 81,600.00 272,000.00 51,552.38 62 Materials and Supplies 252.10 3,726.81 16,100.00 18.47 171.60 6,900.00 23,000.00 19,101.59 63 Contract Services 1,669.25 114,396.14 152,550.00 234.00 21,267.00 65,350.00 217,900.00 82,236.86 64 Utilities 2,867.17 78,156.16 86,100.00 71.65 12,856.50 36,900.00 123,000.00 31,987.34 65 Professional Development 84.00 3,622.19 18,900.00 36.00 266.06 8,100.00 27,000.00 23,111.75 Program: 4000 - Engineering Surplus Total: 45,536.03 636,056.41 892,650.00 21,215.96 259,394.05 371,250.00 1,263,900.00 368,449.54 Program: 5000 - Water Production - - - - 51 Labor 48,765.36 521,123.57 626,000.00 - - - 626,000.00 104,876.43 53 Overtime 3,295.79 41,103.59 36,000.00 - - - 36,000.00 (5,103.59) 54 Standby 1,120.00 12,269.52 15,000.00 - - - 15,000.00 2,730.48 56 Benefits 19,069.16 215,967.95 284,000.00 - - - 284,000.00 68,032.05 61 Water Supply 800.00 865,245.37 937,000.00 - - - 937,000.00 71,754.63 62 Materials and Supplies 5,645.86 152,378.33 279,000.00 - - - 279,000.00 126,621.67 63 Contract Services 7,045.37 203,551.53 341,000.00 - - - 341,000.00 137,448.47 64 Utilities 148,900.12 1,125,628.35 1,612,850.00 - - - 1,612,850.00 487,221.65 65 Professional Development 272.83 8,383.82 9,000.00 - - - 9,000.00 616.18 Program: 5000 - Water Production Total: 234,914.49 3,145,652.03 4,139,850.00 - - - 4,139,850.00 994,197.97 Program: 5100 - Water Treatment - - - - 51 Labor 16,408.46 179,980.06 217,000.00 - - - 217,000.00 37,019.94 53 Overtime 1,101.63 11,875.60 10,000.00 - - - 10,000.00 (1,875.60) 56 Benefits 6,375.49 74,243.19 69,000.00 - - - 69,000.00 (5,243.19) 62 Materials and Supplies 91.46 132,382.59 165,000.00 - - - 165,000.00 32,617.41 63 Contract Services 4,610.54 67,634.54 166,000.00 - - - 166,000.00 98,365.46 64 Utilities 6,741.84 75,111.46 200,000.00 - - - 200,000.00 124,888.54 Page 6 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended April 30, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment Total: 35,329.42 541,227.44 827,000.00 - - - 827,000.00 285,772.56 Program: 5200 - Water Quality - - - - 51 Labor 12,254.62 134,056.57 162,000.00 - - - 162,000.00 27,943.43 53 Overtime 441.18 6,540.87 4,000.00 - - - 4,000.00 (2,540.87) 56 Benefits 4,199.86 50,531.31 60,000.00 - - - 60,000.00 9,468.69 62 Materials and Supplies 1,365.13 7,631.24 18,000.00 - - - 18,000.00 10,368.76 63 Contract Services 8,662.65 103,555.63 161,000.00 - - - 161,000.00 57,444.37 64 Utilities 228.62 1,851.62 2,000.00 - - - 2,000.00 148.38 65 Professional Development - - - - - - - - Program: 5200 - Water Quality Total: 27,152.06 304,167.24 407,000.00 - - - 407,000.00 102,832.76 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 6,925.06 74,943.61 94,500.00 956.22 13,802.04 10,500.00 105,000.00 16,254.35 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 54 Standby 1,404.00 16,771.23 18,000.00 96.00 2,165.91 2,000.00 20,000.00 1,062.86 56 Benefits 2,744.31 26,143.61 37,800.00 707.25 9,363.94 4,200.00 42,000.00 6,492.45 62 Materials and Supplies - 828.57 2,700.00 - 9.81 300.00 3,000.00 2,161.62 63 Contract Services - - - - - - - - 64 Utilities 1,026.52 10,272.89 18,900.00 114.06 1,141.43 2,100.00 21,000.00 9,585.68 65 Professional Development 228.89 10,065.35 22,500.00 - 894.02 2,500.00 25,000.00 14,040.63 Program: 6000 - Field Maintenance Administration Total 12,328.78 139,025.26 194,400.00 1,873.53 27,377.15 21,600.00 216,000.00 49,597.59 Program: 6100 - Water Maintenance - - - - 51 Labor 66,521.54 647,195.18 727,000.00 - (156.00) - 727,000.00 79,960.82 53 Overtime 18,379.65 157,711.76 150,000.00 - - - 150,000.00 (7,711.76) 56 Benefits 32,421.74 335,769.50 316,000.00 - - - 316,000.00 (19,769.50) 62 Materials and Supplies 21,044.39 117,248.15 232,000.00 - - - 232,000.00 114,751.85 63 Contract Services 7,253.73 178,820.87 334,000.00 - - - 334,000.00 155,179.13 64 Utilities 2,243.92 4,769.32 - - 135.00 - - (4,904.32) Program: 6100 - Water Maintenance Total: 147,864.97 1,441,514.78 1,759,000.00 - (21.00) - 1,759,000.00 317,506.22 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - (318.00) 170,425.48 302,000.00 302,000.00 131,574.52 53 Overtime - - - - 1,592.72 3,000.00 3,000.00 1,407.28 56 Benefits - - - 1,066.13 21,315.90 55,000.00 55,000.00 33,684.10 62 Materials and Supplies - - - 6,235.19 30,923.98 32,000.00 32,000.00 1,076.02 Wastewater Treatment - - - 679,197.74 6,714,074.44 6,861,600.00 6,861,600.00 147,525.56 63 Contract Services - - - 76,923.89 166,013.96 978,250.00 978,250.00 812,236.04 Program: 6200 - Wastewater Maintenance Total:- - - 763,104.95 7,104,346.48 8,231,850.00 8,231,850.00 1,127,503.52 Page 7 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended April 30, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 2,304.76 62,765.65 62,300.00 (935.57) 7,535.32 26,700.00 89,000.00 18,699.03 53 Overtime 482.75 13,778.96 17,500.00 53.64 2,451.01 7,500.00 25,000.00 8,770.03 56 Benefits 3,510.00 34,815.15 25,900.00 851.62 10,009.86 11,100.00 37,000.00 (7,825.01) 62 Materials and Supplies 1,658.76 22,631.36 33,900.00 369.38 7,470.95 8,100.00 42,000.00 11,897.69 63 Contract Services 18,229.96 269,873.01 305,450.00 4,038.45 41,815.23 83,400.00 388,850.00 77,161.76 64 Utilities 8,839.88 94,668.98 159,200.00 3,737.46 39,912.91 61,800.00 221,000.00 86,418.11 65 Professional Development - - - - - - - - Program: 7000 - Facilities Maintenance Total: 35,026.11 498,533.11 604,250.00 8,114.98 109,195.28 198,600.00 802,850.00 195,121.61 Program: 7100 - Fleet Maintenance - - - - 51 Labor 10,456.43 115,561.68 135,900.00 1,161.81 15,263.47 15,100.00 151,000.00 20,174.85 53 Overtime 251.17 993.79 2,700.00 27.91 191.62 300.00 3,000.00 1,814.59 56 Benefits 4,016.11 41,127.25 59,400.00 446.18 6,800.31 6,600.00 66,000.00 18,072.44 62 Materials and Supplies 3,869.62 57,316.68 62,100.00 1,139.89 9,445.02 6,900.00 69,000.00 2,238.30 63 Contract Services 8,673.73 64,335.03 112,500.00 840.39 16,569.00 12,500.00 125,000.00 44,095.97 64 Utilities 8,232.85 68,800.86 113,400.00 914.76 7,644.52 12,600.00 126,000.00 49,554.62 65 Professional Development - 1,555.20 4,500.00 - 172.80 500.00 5,000.00 3,272.00 Program: 7100 - Fleet Maintenance Total: 35,499.91 349,690.49 490,500.00 4,530.94 56,086.74 54,500.00 545,000.00 139,222.77 Program: 8000 - Capital - - - 71 -Debt Service 775,506.25 1,653,321.86 4,007,000.00 109,862.50 221,625.00 317,000.00 4,324,000.00 2,449,053.14 81 -Capital Improvement - - 1,471,000.00 - - 2,666,000.00 4,137,000.00 4,137,000.00 82 -Capital Outlay - - 480,519.00 - - 165,317.00 645,836.00 645,836.00 83 -Accounting Income Add back - - - - - - - - Program: 8000 - Capital Total: 775,506.25 1,653,321.86 5,958,519.00 109,862.50 221,625.00 3,148,317.00 9,106,836.00 7,231,889.14 Total Surplus (Deficit): 4,640.75$ 7,879,099.78$ -$ 31,971.71$ 1,462,703.16$ -$ -$ -$ Page 8 of 8 B OAR D AG E N D A S TAF F R E P O RT Agenda Item #7. Meeting Date: May 24, 2017 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: Award C ontract fo r P rofes s io nal Auditing S ervices R E C O MM E N D AT IO N: S taff recommends that the Bo ard of Directo rs (Board) award the c o ntrac t fo r P ro fes sional Aud iting S ervic es to Vicenti, Llo yd & S tutzman, LLP (VL S ) for the years end ed 2017, 2018, and 2019. B AC KG R O UN D / AN ALYS IS : T his rec o mmend ation fo r c o ntrac t award is being brought to the Bo ard d ue to the s p ec ial nature o f auditing s ervices . T he do llar amo unt for the c ontrac t is certainly within the G eneral Manager/C E O ’s s igning autho rity, b ut s ince aud iting is a review of managements’ ac tivities , it is req uired that a relatio ns hip be established , and lines o f c o mmunic ation opened, between the auditors and G overning Bo ard , as o ppos ed to communications go ing through management. T herefore, attac hed fo r the Board’s review is a P ro posal from Vic enti, Lloyd & S tutzman, L LP to p rovid e aud iting services to the Distric t fo r the fisc al years end ed June 30, 2017, 2018, and 2019. VLS was o ne o f s ix C PA firms to rec eive a R eq ues t for P ropo s al fo r aud iting servic es fro m the Distric t, each firm was selec ted d ue to their s ignific ant exp erience in provid ing s ervic es to lo cal governmental agenc ies. S taff is p leased to report that all s ix pro vided p ro p o sals, inc lud ing the Distric t’s mos t rec ent audit firm Van Lant & F ankhanel, L LP. After reviewing the tec hnic al q ualificatio ns , aud it app ro ac h, and fee pro p o s als of all s ix firms , s taff p ro vid ed a s ummary o f the p ro posals to the F inanc e and Human R es ourc es C o mmittee (C o mmittee), and p ro p o s ed that VLS be rec o mmend ed fo r s elec tion as Dis tric t aud ito rs to the full Bo ard. T he C ommittee members sup p orted the recommendation. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer A summary of fee p ro posals for fis c al year 2016-17 is sho wn b elow: S taff would like to c ommend the work o f Van Lant & F ankhanel o ver the last s ix years , and to rec ognize their c o ntrib utions to ward the District obtaining the G F O A C ertific ate of Ac hievement for Exc ellence in F inanc ial R eporting fo r the las t fo ur years . AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice (E) - P ractice transparent & acc o untab le fis cal management R E VIE W B Y O T HE R S : T his agend a item has been reviewed by the Ad minis tratio n Dep artment, F inance Department, and the F inanc e and Human R es o urc es S tand ing C o mmittee. F IS C AL IMPAC T : T here is no fis c al impact ass ociated with this agenda item. ATTAC H M E NTS: Description Type VLS P roposal Backup Material EAST VALLEY WATER DISTRICT PROPOSAL TO PROVIDE INDEPENDENT AUDIT SERVICES for fiscal year ending June 30, 2017, 2018 and 2019 with an option to extend through 2021 Submitted: April 12, 2017 Presented by: Renée S. Graves, CPA, CGFM Partner RGraves@vicenticpas.com Extension 260 Leslie Ward, CPA Senior Manager LWard@vicenticpas.com Extension 293 Vicenti, Lloyd & Stutzman LLP 2210 E. Route 66 Glendora, CA 91740 Tel: 626.857.7300 Fax: 626.857.7302 East Valley Water District i EAST VALLEY WATER DISTRICT PROPOSAL TO PROVIDE INDEPENDENT AUDIT SERVICES TABLE OF CONTENTS Page Letter of Transmittal .................................................................................................... 1-2 Audit Services .............................................................................................................. 3-6 Audit Approach & Philosophy ................................................................................ 3 Audit Work Plan .................................................................................................... 4-6 Auditor’s Staffing and Qualifications ......................................................................... 7-13 Statement of Independence .................................................................................. 7 Client Service Partner ........................................................................................... 7 Client Service Managers and Additional Staff Auditors .......................................... 8 Engagement Team Resumes ................................................................................ 9-13 Training in Key Issues Facing Government and Special Districts .......................... 14 Quality and Continuity of Staff ............................................................................... 14 Use of Technology by the Audit Team ................................................................... 14 License to Practice ................................................................................................ 14 Profile of Auditor .......................................................................................................... 15 Size and Structure of the Firm ............................................................................... 15 Firm Qualifications and Experience ....................................................................... 15 Range of Activities ................................................................................................. 15 Client References ......................................................................................................... 16 Assurances .................................................................................................................. 17-18 Insurance .............................................................................................................. 17 Warranties ............................................................................................................ 17 Indemnities ........................................................................................................... 17 Affirmative Action Policy ........................................................................................ 17 Release of Information .......................................................................................... 17 Peer Review ......................................................................................................... 17 Peer Review Documentation ................................................................................. 18 Audit Scope and Opinion ............................................................................................ 19 Understanding Your Needs ................................................................................... 19 Financial Audit .............................................................................................. 19 Uniform Guidance (formerly Single Audit) ..................................................... 19 Identification of Anticipated Potential Audit Issues ................................................ 19 Cost Bid ........................................................................................................................ 20-22 Estimate of Fees ................................................................................................... 20-21 Schedule of Professional Fees & Expenses – Audit Services ............................... 22 Sample Listing of Anticipated Schedules .................................................................. 23 Attachments Affirmation and Authorization April 12, 2017 Board of Directors East Valley Water District 31111 Greenspot Road Highland, CA 92346 RE: Request for Proposal to Provide Professional Auditing Services Dear Board of Directors, Thank you for considering Vicenti, Lloyd & Stutzman LLP (Vicenti) as your independent auditor. We are delighted to respond to the East Valley Water District (District) Request for Proposal for Audit Services for the fiscal years ending June 30, 2017, 2018 and 2019 with option to extend through June 30, 2021. Vicenti has been serving governmental entities for over 30 years. Since we are independent of our clients, our primary goal is to provide objective observations regarding their financial statements, accounting controls, and financial reporting processes. We will work with the District in your efforts to earn and maintain the trust of the communities that you service, special district and other partners, and the public in a responsible and transparent manner. We have read and understand the requirements listed in the Request for Proposal for Independent Audit Services. This statement certifies that we acknowledge the various requirements listed and that our professional licensing and standing meets all relevant standards. Please review our proposal as an opportunity to learn more about the depth and breadth of our expertise. We are committed to meeting your required timelines. Our goal is to properly plan the audit to provide Management and the Board of Directors with the most current information. We are qualified to meet the requirements of and to perform the scope of this engagement because of our knowledge and expertise that we have developed in the special district and governmental arenas. We are an established and financially solid firm with a strong presence in the San Gabriel Valley and Inland Empire areas for more than 60 years. We work closely with our clients to help them understand and adjust to the evolving accounting and regulatory changes in the industry. East Valley Water District Page 2 YOUR PRIMARY CONTACTS The following personnel are authorized to make representations for Vicenti, and they are based out of our office at 2210 E. Route 66, Glendora, CA 91740: Renée S. Graves, CPA, CGFM 626-857-7300 Ext. 260 RGraves@vicenticpas.com Leslie Ward, CPA 626-857-7300 Ext. 293 LWard@vicenticpas.com While our technical expertise and depth of knowledge are extensive, our greatest strength lies in our people. As the Client Service Partner of the Vicenti Audit Team, it is my promise to conduct a comprehensive audit for the District with the utmost integrity and diligence. My active participation during the audit ensures that issues are quickly communicated to the General Manager and disclosed properly to the Board of Directors. This proposal is a firm and irrevocable offer for at least one hundred eighty days from April 12, 2017. If you have any questions or need further information, please feel free to call me anytime at the telephone number above. I will be happy to discuss this proposal and our firm's qualifications with you in a more personal manner. Thank you very much for your consideration. Sincerely, Renée S. Graves, CPA, CGFM Partner East Valley Water District 3 AUDIT SERVICES AUDIT APPROACH & PHILOSOPHY We feel it is imperative that you have consistent contact with the appropriate experts from our firm. Therefore, we assigned your engagement team based upon their experience and expertise. While some CPA firms offer limited access to the partner assigned to a given client, we encourage regular contact with the partner and senior associate assigned to serve you. Our "strategic partner" concept includes the belief that our clients are best served when they have developed relationships with more than just one person. We ensure that a partner and a manager are assigned to each key client. This results in better planning and advising for you and also better service since a back-up resource is available if the partner is on vacation or otherwise unable to respond to your needs. Similarly, we also assign top staff members to the job. Again, this provides co ntinuity of service should one person be unavailable. It also means jobs can get done more quickly. It is advantageous to maintain continuity in staff assigned to the audit from year to year from both your standpoint and ours. The audit will go smoother as we will be familiar with your people and accounting records. It is also cost effective as time on the job can be utilized for actually doing the audit as opposed to learning your systems. This is advantageous to us, as well, as it helps us stay within our time budget. Staff turnover is to be expected in any business environment – both ours and yours. Our experience in this area varies from year to year. While we cannot promise there will be no turnover on your audit, we can assure you that every effort will be made to assign some of the same people from year to year and, if necessary, to replace manager or supervisor level staff with individuals who have already worked on your organization’s audit. We have never had an occasion where the entire audit staff on an audit such as yours turned over between one year and the next. We understand that some of our new clients experienced that with their prior auditors. An advantage of normal staff turnover is it can bring a fresh look to your operations without the need to change audit firms. While we stress consistency in personnel, we also will realize the n eed for periodic rotation of personnel to ensure objective viewpoints. We discuss this with your management, Finance Committee and/or Audit Committee to determine the appropriateness of rotation. Over the years we will have several different top people assigned to your work. We believe this will result in a fresh look at the audit and issues facing the East Valley Water District. East Valley Water District 4 AUDIT SERVICES AUDIT WORK PLAN Estimated Hours Time Partner/ Frame Engagement Activity Manager Supervisor Staff June Entrance Conference 2 2 Initial briefing and meeting with management designed to develop a reasonably comprehensive understanding of the District and its operating environment. We will discuss year end and interim work to be performed. We will also consider any prior audit issues experienced by the District. A preliminary listing of items to be prepared by management will be delivered, based upon this activity. July Internal Control Consideration, Documentation, and Assessment 3 5 8 We are required to consider the District’s internal control in planning and performing the audit in accordance with generally accepted audit standards. We will inquire of the District personnel regarding the overall internal control structure; specifically, controls over cash receipts, cash disbursements, maintenance and operations, segregation of duties, and physical safeguards to determine the extent of internal control reliance in planning the audit. We will use a variety of methods to gain and document our understanding of your internal structure. These methods will include a review of your internal policy and procedure manuals, questionnaires, and development of narratives based on interview with various staff members and/or walk-throughs of transactions. In addition, to gain an understanding of the District’s computer based information system, we employ powerful audit software to prepare, organize, review, and share working papers during the engagement. Through the use of integrated trial balance database, we will download data from your financial applications. We may utilize data extraction software such as ACL, to perform data analytics that are more meticulous than traditional auditing methods. We will make every effort to take advantage of your systems to make the audit as efficient and effective as possible. July Preliminary Analytical Review 3 5 Analytical review procedures are applied to help the audit team plan the nature, timing, and extent of other auditing procedures. These procedures also enhance our understanding of the transactions and events that occurred since the last audit date and identify areas that may represent specific risk relevant to the audit. East Valley Water District 5 AUDIT SERVICES AUDIT WORK PLAN (continued) Estimated Hours Time Partner/ Frame Engagement Activity Manager Supervisor Staff Preliminary Analytical Review (continued) Exact analytical procedures to be performed depend on the volatility of account balances and the ability to develop meaningful expectations. Some analytical procedures we expect to perform are revenue potential calculations, ratio and analysis, expenses per FTE, comparison to budget, etc. July Audit Risk Assessment and Planning, UG Risk Analysis, 2 6 8 including Uniform Administrative Requirements The audit team will consider audit risk, together with materiality, to determine the nature, timing, and extent of audit procedures and the evaluation of those procedures. We will prepare an updated listing of items to be prepared by management as a result of this activity. We will also design the audit to provide reasonable assurance that the financial statements are free of material misstatements resulting from violations of laws and regulations that have a direct and material effect on the financial statements. We will review board minutes, agreements, contracts and other correspondence to determine the laws and regulations subject to audit testing. We will also interview management regarding laws and regulations as management is ultimately responsible for identifying government programs and understanding and complying with the compliance requirements. If deemed necessary, we will communicate with legal counsel or government officials to gain an understanding of the laws and regulations that have a direct and material effect on the financial statements. Throughout Consideration of Fraud 2 4 4 Auditing Standards require procedures that the audit team will use to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements, whether caused by error or fraud. October Account Balance & Compliance Testing 16 16 42 The audit team will test specific accounts and compliance requirements as they relate to the financial statements. We will use appropriate methods of sample selections in our audit work. We will also download the District’s final trial balances and integrate evidential matter into our workpapers. East Valley Water District 6 AUDIT SERVICES AUDIT WORK PLAN (continued) Estimated Hours Time Partner/ Frame Engagement Activity Manager Supervisor Staff Account Balance & Compliance Testing (continued) Audit sampling technics for purposes of testing compliance will depend on the results of our risk assessment and planning procedures. We utilize both statistical and non-statistical sampling based on our judgement, the level of reliability required and our need to quantify sampling risks. October Data Analysis & Final Analytical Review 2 6 These procedures are designed to help the audit team assess the conclusions reached during the course of the audit and to evaluate the overall financial statement presentation. November Report Generation & Audit Exit Meeting 4 6 10 We will generate draft financial statements, any supplementary schedules, and all required reports, including a draft management letter. We will then initiate a field exit with management to discuss remaining audit issues and present the draft financial statements and management letter. December Report Finalization & Presentation 4 4 We will finalize the audited financial statements and required reports and present them to management and to the Board of Directors. Throughout Quality Control Review & Meetings with Management 8 4 4 Quality control review procedures occur throughout the audit process and are designed to assure quality control and to identify audit issues as they arise. We will also schedule various meetings with management to discuss the audit or related matters. Total Estimated Time By Level 46 58 76 Total Estimated Engagement Time Requirements 180 East Valley Water District 7 AUDITOR’S STAFFING AND QUALIFICATIONS STATEMENT OF INDEPENDENCE Vicenti and its members are independent of the District as defined by generally accepted auditing standards and the U.S. General Accounting Office’s Government Auditing Standards. The firm has had no professional relationships involving the District and its members for the past five (5) years and the staff who will be assigned to do not constitute a conflict of interest relative to performing the proposed audit. CLIENT SERVICE PARTNER Renée S. Graves, CPA, CGFM is a Partner of Vicenti. She has over thirty years of experience planning, directing and supervising audits of special districts, auxiliary and nonprofit organizations, retirement communities, community college districts, K-12 school districts, and charter schools in Southern California. Renée provides consulting services as an interim CFO and for year end closing and internal control reviews and analyses. She conducts accounting workshops and addresses organizations such as the California Association of School Business Officials, the Association of Chief Business Officials, and the California Society of CPAs, as well as conducting internal workshops on the requirements of Proposition 39. She currently serves on the California Board of Accountancy Peer Review Oversight Committee, is a former member of the California State Society of CPAs Accounting and Auditing Committee, and is a former Director of the Cal Poly Accounting Alumni Association. In addition to being a Certified Public Accountant, Renée is a Certified Government Financial Manager. Renée leads an internal committee that researches auditing standards for the purpose of developing training for our staff and clients on changing regulations. Through this committee, Vicenti provides early notification of changing standards and provides training for and assistance with the implementation of new standards. Renée has served as Client Service Partner on several water agency and community college audit engagements. Client Service Partner - The Client Service Partner has the responsibility for the overall performance of our personnel. To ensure that this goal is achieved, she will closely monitor the progress of the engagement, be available at all times to address any issues that senior staff on the job might have, and also be available at all times to your organization's personnel to respond to any questions or concerns. We understand the need for consistency in staffing, availability and contact. Your needs are top priority for us in scheduling and assigning staff, responding to requests, and researching special situations. If a particular Audit In-Charge is desired and, according to availability, we will work to accommodate your preference. Partner-Led Teams With Vicenti as your auditor, you and your team will have direct access to the Client Service Partner, who will be available at all times to East Valley Water District personnel to respond to any questions or concerns. The Client Service Partner is responsible for the overall performance of our personnel. They will closely monitor the progress of the engagement and will be available at all times to address any issues that senior staff on the job might have. They will review all sensitive or material work performed by Vicenti personnel. For quick access, call 626-857-7300:  Renée, Ext. 260  Partner Name, Ext. XXX East Valley Water District 8 AUDITOR’S STAFFING AND QUALIFICATIONS CLIENT SERVICE MANAGERS Leslie Ward, CPA is a Senior Manager at Vicenti with concentration in special districts and not-for-profit audit areas as well as commercial enterprises. She has experience in auditing and supervising audits of governments and non-profit organizations, including financial and compliance audits of joint powers authorities, water agencies, and other not-for-profit and commercial organizations. Leslie will be responsible for the on-site progress of the engagement and will supervise the staff members assigned. Leslie participates in an internal committee that researches auditing standards for the purpose of keeping our staff and clients informed of changing regulations. Through this committee, Vicenti provides early notification of changing standards and provides training for and assistance with the implementation of new standards. Jessie Wang, CPA, CGMA, CTIP is a Manager at Vicenti and will participate in the audit procedures related to IT controls and processes. As you can see from the attached resume, Jessie has the experience, knowledge and skills to assist the audit team to ensure that the Agency’s audit is of the highest quality and completed in accordance with governmental standards. ADDITIONAL STAFF AUDITORS Daphne Liu, CPA is a Senior Associate with Vicenti specializing in special districts, joint power authorities, K-12 and community college districts. She has a thorough understanding of various requirements including Federal and State compliance. Haik Seropian is an Associate with Vicenti, specializing in special districts, joint power authorities, charter schools and DMV agreed upon procedure engagements. Haik has also worked for an agency in the water industry and brings both an internal and external experie nce and knowledge to the engagements to which he is assigned. Vicenti has invested hundreds of hours to develop effective, research -based direct instruction and hands-on training for our auditors. Each staff accountant participates in 120 hours of audit -specific training within the first two years of employment. Staff emerge with a solid knowledge base for their assigned tasks, which reduces on-the-job training for a more cost-efficient audit. Drawing from the remaining senior associates and associates wit h special district experience, the Client Service Partner will assign the best-qualified individuals for the audit. Staff accountants are responsible for the detailed testing of internal control and transactions under the supervision of the senior manager. All key personnel who participate in your engagement are Certified Public Accountants in the State of California. Whenever you have a question or concern, please feel free to contact the Client Service Partner, Client Service Manager or any member of the engagement team at any time. We feel it is imperative that you have consistent contact with the partner and staff assigned to your engagement. While some CPA firms offer clients limited access to their designated partners and managers, at Vicenti we encourage regular contact. Your Audit in Capable Hands: Managers and In- Charge Auditors The Vicenti Client Service Manager plays a key role in planning the engagement, assessing internal control, and evaluating the results of many audit steps. The Auditor In-Charge coordinates the audit, monitors on-site progress, and supervises staff. For quick access, call 626-857-7300:  Leslie, Ext. 293  Jessie, Ext. 287  Daphne, Ext. 245  Haik, Ext 295 East Valley Water District 9 Renée S. Graves, CPA, CGFM Partner PRACTICE AREAS:  Audits  Business and Consulting Services  Internal Control Review and Analysis  Year-end Closing and Accounting-Related Issues INDUSTRY EXPERTISE:  Governmental Entities  Special Districts  Community Colleges, including Bookstore Operations  Not-for-Profit Organizations  Foundations  Retirement Communities  School Districts PROFESSIONAL BACKGROUND:  Joined Vicenti, Lloyd & Stutzman LLP in 1986; Named Partner in 1993  Frequent speaker at the California Society of Certified Public Accountants and the California Association of School Business Officials PROFESSIONAL AND COMMUNITY ACTIVITIES:  American Institute of Certified Public Accountants  California Society of Certified Public Accountants  California Board of Accountancy Peer Review Oversight Committee  LeadingAge of California  California Association of School Business Officials  Past Chair and Finance Chair, La Verne Chamber of Commerce  Past Chairperson, Community College Research and Development Committee  American Woman’s Society of Certified Public Accountants  2001 Alumni Inductee into the Cal Poly Accounting Hall of Fame LICENSES:  Licensed to practice as a Certified Public Accountant in the State of California since July of 1988  Received Certification as a Government Financial Manager in March of 1998 EDUCATION:  Bachelor of Science in Accounting, Cum Laude, California State Polytechnic University, Pomona PERSONAL:  Renée enjoys outdoor activities including boating and bike riding and is a raving fan of the UC Davis Ultimate Club Frisbee and UC Davis Women’s Volleyball teams. East Valley Water District 10 Leslie Ward, CPA Senior Manager PRACTICE AREAS:  Financial and Compliance Audits  Tax Exempt Organization Reporting  Business Service Consulting INDUSTRY EXPERTISE:  Joint Powers Authorities  Not-for-Profit Organizations  Water Districts and other Special Districts  Charter Schools PROFESSIONAL BACKGROUND:  Joined Vicenti, Lloyd & Stutzman LLP in 2010 as an Audit Services Manager  Basin Water Company, Financial Reporting and Compliance, 2006-2009  Suburban Water Systems, Financial Reporting and Compliance, 2003 -2006 PROFESSIONAL AND COMMUNITY ACTIVITIES:  American Institute of Certified Public Accountants  California Society of Certified Public Accountants  National Association of Professional Women  Governmental – Not-for-Profit Accounting and Auditing Issues  Vicenti Standards Committee  Volunteer and Supporter, American Cancer Society LICENSE:  Licensed to practice as a Certified Public Accountant in the State of California since January 1988 EDUCATION:  Bachelor of Science in Business Administration with a major in Accounting, Cum Laude, California State Polytechnic University, Pomona PERSONAL:  Leslie enjoys walking, scrapbooking, reading, the theater, and spending time with her family. East Valley Water District 11 Jessie Wang, CPA, CGMA, CITP Manager PRACTICE AREAS:  Financial and Compliance Audits  Governmental Auditing  Single Audits under Uniform Guidance  Proposition 39 Financial and Performance Audits  Attendance Accounting Consulting  Associated Student Body Workshops  Management Consulting  Business and Consulting Services  Internal Control Review and Analysis  Fraud Risk Assessments INDUSTRY EXPERTISE:  K-12 School Districts  Colleges, Universities, and Community Colleges, including:  Associated Students, Inc.  Foundations  Auxiliary Services  Student Financial Aid  Bookstore Operations  Student Unions  Food Services  Grants & Federally Funded Programs  Not-for-Profit Organizations  Joint Power Authorities  Title Companies  Governmental Agencies PROFESSIONAL BACKGROUND:  Joined Vicenti, Lloyd & Stutzman LLP in 2008; Promoted to Manager in 2014 PROFESSIONAL AND COMMUNITY ACTIVITIES:  American Institute of Certified Public Accountants  California Society of Certified Public Accountants  Vicenti CARE Committee Co-Chair LICENSES:  Licensed to practice as a Certified Public Accountant in the State of California since August of 2011  Certified Information Technology Professional EDUCATION:  Bachelor of Science in Business Administration with an emphasis in Accounting, California State Polytechnic University, Pomona LANGUAGES:  Chinese (Mandarin & Cantonese) PERSONAL:  Jessie enjoys traveling and spending time with family and friends. East Valley Water District 12 Daphne Liu, CPA Senior Associate PRACTICE AREAS:  Financial and Compliance Audits INDUSTRY EXPERTISE:  Special Districts  K-12 and Community College Districts  Proposition 39 Financial and Performance Audits  Joint Power Authorizes  Retirement Homes PROFESSIONAL BACKGROUND:  Joined Vicenti, Lloyd & Stutzman in July 2015, Promoted to Senior Associate in 2017  Previously employed by Interhealth Corp. – PIH Health Hospital from June 2013 to July 2015  Previously employed by Lucky Transportation Inc. from September 2004 to March 2012 LICENSE:  Licensed to practice as a Certified Public Accountant in the State of California since 2016 EDUCATION:  Bachelor of Science in Finance and International Business, Simon Fraser University, Vancouver, Canada – Simon Fraser University Open Scholarship PERSONAL:  Daphne likes hiking and swimming, she also enjoys travel and spending time with her husband and two children. East Valley Water District 13 Haik Seropian Associate PRACTICE AREAS:  Financial and Compliance Audits INDUSTRY EXPERTISE:  Community College Districts  K-12 School Districts  Joint Power Authorities  Community College Districts  Department of Motor Vehicle: International Registration Plan Bonded Web User Program PROFESSIONAL BACKGROUND:  Joined Vicenti, Lloyd & Stutzman LLP in January 2015  Victor Valley Wastewater Reclamation Authority June 2011- December 2014 EDUCATION:  Bachelor of Science in Business Administration with an emphasis in Accounting and a Minor in Finance from California State University, San Bernardino, 2011 PERSONAL:  Haik enjoys weightlifting, hiking and food as well as photography and all types of music. East Valley Water District 14 AUDITOR’S STAFFING AND QUALIFICATIONS TRAINING IN KEY ISSUES FACING GOVERNMENT AND SPECIAL DISTRICTS It is our duty to our clients to be well educated about the issues facing governmental industries. We achieve this by participating in various organizations, such as the Association of California Water Agencies (ACWA), California Utility Executive Management Association (CUEMA) and the California Society of Municipal Finance Officers (CSMFO), and subscribing to several publications. We are equally committed to keeping our professionals apprised of the latest technical developments in the areas of audit, accounting, tax, and information systems. Every year, we attend education and development courses that meet or exceed our profession’s standards. In order to perform quality and efficient audits, our professionals obtain extensive training sessions in order to keep up to date with the ever changing compliance requirements to ensure that our professionals possess the highest technical knowledge. As a service to our clients, we distribute technical information updates as soon as we become aware that a specific client will be affected by a new accounting pronouncement or tax law change. We have an extensive reference library and Internet service capacity at our offices, and they are available to our clients. In brief, we are able to help you deal with the multitude of significant issues you and other districts face. QUALITY AND CONTINUITY OF STAFF Staff turnover is to be expected in any business environment – both ours and yours. Our experience in this area varies from year to year. While we cannot promise there will be no turnover on your audit, we can assure you that every effort will be made to assign some of the same people from year to ye ar and, if necessary, to replace manager or supervisor level staff with individuals who have already worked on your organization’s audit. Under our new audit team dedicated to the water and special district’s industry, we have not had an occasion where the entire audit staff has turned over between one year and the next. An advantage of normal staff turnover is it can bring a fresh look to your operations without the need to change audit firms. While we stress consistency in personnel, we also will realize the need for periodic rotation of personnel to ensure objective viewpoints. We will discuss this with your management and/or Finance Committee to determine the appropriateness of rotation. USE OF TECHNOLOGY BY THE AUDIT TEAM At Vicenti, technology is an important component in providing better service to our clients. We currently employ powerful audit software that helps us prepare, organize, review, and share working papers during the engagement. Through the use of an integrated trial balance database, we are able to download data from a client’s financial applications and generate draft financial statements. We may utilize data extraction software to further expedite the audit of East Valley Water District’s systems to make the audit as efficient and effective as possible. Manager Jessie Wang is a Certified Information Technology Professional (CITP). This credential is a specialty designation that identifies CPAs with the unique ability to bridge between business and technology while meeting the strict requirements for a CPA license as well as additional training and experience in Emerging Trends, IT Assurance and Risk, Business Solutions, Data Analytics and Security and Privacy. Additionally, all professional staff are proficient in auditing computerized systems. LICENSE TO PRACTICE We are properly licensed as a Certified Public Accounting firm in the State of California and all key professional staff are properly registered/licensed to practice in the State of California. East Valley Water District 15 PROFILE OF AUDITOR SIZE & STRUCTURE OF THE FIRM In 1953, Vicenti, Lloyd & Stutzman (Vicenti) began the journey to build a team of exceptional accounting professionals with rich experiences and dedication to a wide variety of organizations throughout California. Since that time, we have helped water and government agencies throughout Southern California ensure fiscal responsibility and meet regulatory compliance through responsible and effective services in the areas of audit, accounting and tax. We are a limited liability partnership under the laws of the State of California and have operated under the existing name of Vicenti, Lloyd & Stutzman LLP since 1966. We are properly licensed as a Certified Public Accounting firm in the State of California. We are a large, local firm and currently have 63 employees including one partner emeritus, nine partners, six senior managers, five managers, and other professional and administrative staff. Our professional staff includes 39 auditors with governmental auditing experience. All work is performed at our office headquarters located at 2210 E. Route 66, Glendora, California 91740. FIRM QUALIFICATIONS AND EXPERIENCE Vicenti has earned an excellent reputation as a firm committed to providing top quality audit, accounting, tax, and consulting services to our special district clients. The following is a partial listing of water agencies and special districts we have served over the years. ■ Main San Gabriel Basin Watermaster ■ Pico Water District ■ City of Glendora Water Department ■ California Groundwater Coalition ■ Victor Valley Wastewater Reclamation ■ So. California Community College District JPA ■ Central Basin Water Association ■ San Gabriel Valley Protection Association ■ MERGE Risk Management ■ San Gabriel Valley Municipal Water District ■ Valley County Water District ■ California Schools Employee Benefit Assoc. JPA ■ Jurupa Community Service District ■ Metropolitan Employee Benefits Trust ■ Association of Groundwater Agencies ■ San Gabriel Valley Council of Governments Vicenti continuously strives to help our clients be as successful as possible and make recommendations to improve efficiencies. Our approach is management oriented and we are committed to complying with all state and regulatory requirements. Communication is our highest priority, which is why we are available all year round to address our clients’ needs. Vicenti is also fully qualified to advise you in the areas of fraud detection, internal auditing, and governmental funding issues. RANGE OF ACTIVITIES We are recognized throughout the State of California as a leading special district and governmental auditing firm. In addition to special districts, we specialize in audits of joint power authorities, school districts and community colleges. Our auditors are all full-time employees and are staffed out of our Glendora office. In addition to audits, our firm provides tax preparation and planning services, reviews and compilations, and a variety of consulting services. Vicenti Employees & Governmental Experience Total Employees by Level Experienced with Regulatory Audits Partner Emeritus 1 1 Partners 9 8 Directors/Consultants 3 2 Senior Managers 6 5 Managers 5 4 Senior Associates and Associates 25 19 Administrative Staff 14 N/A Total 63 39 CPAs 29 13 East Valley Water District 16 CLIENT REFERENCES Vicenti has been serving governmental entities for over 30 years. The following are governmental clients that we have provided similar services to in recent years. We have conducted audits on various water districts, special districts and associations over the last five years. At the present time, we audit numerous governmental entities that apply standards promulgated by GASB, and we have extensive experience conducting audits that comply with OMB Uniform Administrative Requirements. Please feel free to contact all references regarding Vicenti. Audit Engagements: California Schools Risk Management and California Schools Employee Benefits Association Javier Gonzalez, CFO Engagement partner: Renée S. Graves 1950 South Sunwest Lane, Suite 100 Scope of work: Audit of Financial Statements San Bernardino, CA 92408 Total Hours: 400 – Years of Services: 10 Tel: 909.763.4900 Tel: 626-338-7301 Jurupa Community Services District Cindy Mouser, Controller Engagement Partner: Renée S. Graves 11201 Harrel Street Scope of work: Audit of Financial Statements Mira Loma, CA 91752 Total Hours: 300 – Years of Services: 3 Tel: 951-685-7434 San Gabriel Valley Municipal Water District Darin Kasamoto, General Manager Engagement Partner: Renée S. Graves 1402 N. Vosburg Drive Scope of work: Audit of Financial Statements Azusa, CA 91702 Total Hours: 130 –Years of Services: 2 Tel: 626-969-7911 Valley County Water District Jandy Macias, Finance Manager Engagement Partner: Renée S. Graves 14521 Ramona Boulevard. Scope of work: Audit of Financial Statements Baldwin Park, CA 91706 Total Hours: 115 –Years of Services: 2 MERGE Risk Management Kristin Olafsson, Deputy Engagement partner: Renée S. Graves Superintendent-Business Services Scope of work: Audit of Financial Statements El Monte City School District Total Hours: 100 – Years of Services: 10 3540 N. Lexington Avenue El Monte, CA 91731 Tel: 626.307-3400 LA County Schools Regionalized Business Services (COPs) Corporation Gerald Yarbrough, Regionalized Engagement partner: Renée S. Graves Business Services Coordinator Scope of work: Audit of Financial Statements Business Advisory Services Total Hours: 80 – Years of Services: 20+ Los Angeles County Office of Education 9300 Imperial Highway Downey, CA 90242 Tel: 562-922-6122 East Valley Water District 17 ASSURANCES INSURANCE We carry workers’ compensation, commercial general liability, commercial automobile liability, and professional liability insurance. We shall provide a certificate of insurance upon your request. WARRANTIES Vicenti has obtained an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts of the firm and its officers, employees, and agents. We will not delegate or subcontract our responsibilities under any agreement with you without your express prior written consent. All information provided in response to this request for proposal is true and correct. We acknowledge and agree with all of the terms and conditions stated in this request for proposal. INDEMNITIES Vicenti assumes all risk of injury to its employees, agents, and subcontractors, including loss of or damage to property, and shall defend, indemnify, and hold harmless the District, its Board of Directors, officers, employees, and agents from and against all claims, suits, or causes of action for injury to any person or damage to any property arising out of, or connected with, performance of work under the contract that does not result from the gross negligence or intentional misconduct of District, its Board of Directors, officers, employees or agents. AFFIRMATIVE ACTION POLICY Vicenti does not discriminate against any employee or applicant for employment because of race, sex (including pregnancy, childbirth, or related medical condition), creed, national origin, color, disability as defined by law, disabled veteran status, Vietnam veteran status, religion, age, medical condition, marital status, ancestry, or sexual orientation. RELEASE OF INFORMATION Vicenti will not publish or use any advertising, sales promotion, or publicity in matters relating to services, equipment, products, reports, and material furnished by Vicenti in which the District name is used, or its identity is implied, without prior written approval by District. PEER REVIEW Vicenti is a member of the Private Companies Practice Section (PCPS) of the American Institute of Certified Public Accountants (AICPA). Membership with the PCPS requires that an outside firm conduct a peer review of our quality control procedures every thr ee years. Because of the volume of audits we conduct, reviews of Vicenti work always include educational and governmental engagements. Most importantly, our peer reviews have always returned an unqualified (“clean”) report and have never included disciplinary action. Our most recent peer inspection was conducted in May 2016 and is attached for your review. You may also obtain a copy from our website at www.vicenticpas.com/about/peer-review/. In addition, Partner Renée S. Graves is a member of the California Board of Accountancy Peer Review Oversight Committee. East Valley Water District 18 ASSURANCES PEER REVIEW DOCUMENTATION East Valley Water District 19 AUDIT SCOPE AND OPINION UNDERSTANDING YOUR NEEDS Financial Audit We will audit the financial statements of the District for the fiscal years ending June 30, 2017, 2018 and 2019 with the option to extend through 2021. In addition, our audit will include the preparation and filing of the related State Controller’s Report for all funds of the District, if required. Our audit will be conducted in accordance with generally accepted auditing standards in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and other applicable laws and regulations. To the extent applicable, our audit will meet the requirements of the Office of Management and Budget (OMB) Uniform Administrative Requirements and the State Controller’s Minimum Audit Requirements for California Special Districts. We will evaluate the adequacy of the internal controls and accounting systems and, where weaknesses are noted, make appropriate recommendations for improvements. We will submit a management letter to include findings and recommendations, other instances of non-compliance with laws and regulations, and significant deficiencies or material weaknesses if identified. Vicenti will assist the District in providing more meaningful and concise financial statements by seeking improved methods of reporting. We will be available on a day-to-day basis for consulting and on-going auditing needs. We will provide adjusting journal entries to the District to allow sufficient time to prepare the Management’s Discussion and Analysis. Management is responsible for preparing the financial statements, including footnotes, required supplementary information, and supplementary information. We will assist management in preparing the financial statements and creating a print ready cohesive document, but responsibility for the financial statements remains with management. We will review a draft of the financial statements with management and will present the financial statements to the Finance Committee and/or the Board of Directors, if requested. If required, the annual report of the District’s financial transactions will be filed with the State Controller within the required timeline and in the electronic format as prescribed by the State Controller. Uniform Guidance (formerly Single Audit) The District will determine annually if Uniform Guidance procedures are required. At the District’s discretion, we will perform the audit in accordance with the OMB Uniform Guidance. We will issue our report on compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Uniform Guidance. We will prepare the Data Collection form required by OMB. A separate engagement letter and fee estimate will be prepared if these services are required. IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT ISSUES While it is not our expectation to discover any “audit problems,” there are typically challenges th at we encounter in connection with special district audits which require us to modify our approach accordingly. An example of such issues includes ascertaining the extent of management oversight over the accounting function. Special districts normally have a small accounting staff that precludes ideal segregation of duties. Proper management oversight mitigates those internal control risks. East Valley Water District 20 Vicenti Billing Policy Fees for our professional audit services are proposed at a maximum not-to-exceed figure. COST BID ESTIMATED FEES Our audit fees will include assistance with the preparation of your Management’s Discussion & Analysis as required by GASB 34 and implementation of GASB 68, if applicable; telephone consultation between our auditors and your staff during the normal course of the audit; presentation of the audit to management and to the Board of Directors, and availability to you to answer general questions throughout the year. Following is our not-to-exceed fees for the fiscal years ending June 30, 2017, 2018 and 2019, with the option to extend through 2021. Out-of-Pocket expenses, including mileage at the current Internal Revenue Service rate will not exceed $300. Fee for Fiscal Year REQUIRED ITEMS: 2016-2017 2017-2018 2018-2019 1. Financial Audit of THE DISTRICT $ 18,000 $ 18,500 $ 19,000 2. Separate financial review report for the North Fork Water Company $ 2,000 $ 2,200 $ 2,400 3. State Controller office Report and Submission $ 700 $ 750 $ 800 4. Travel Expenses $ 300 $ 300 $ 300 SUB-TOTAL REQUIRED ITEMS $ 21,000 $ 21,750 $ 22,500 OPTIONAL ITEMS: A. Single audit examination of all federal grants $ 1,500 $ 1,500 $ 1,500 B. Compilation of the CAFR Document $ 1,000 $ 1,000 $ 1,000 C. Audit of Internal Controls (see * below) * * * D. Continuing Disclosure Annual Report $ 1,000 $ 1,000 $ 1,000 SUB-TOTAL OPTIONAL ITEMS $ 3,500 $ 3,500 $ 3,500 GRAND TOTAL $ 24,500 $ 25,250 $ 26,000 *C. Fees to be determined based on agreed upon procedures and depth of internal control audit and relevant report requirements. East Valley Water District 21 COST BID ESTIMATED FEES (continued) Fee for optional additional Fiscal Year REQUIRED ITEMS: 2019-2020 2020-2021 1. Financial Audit of THE DISTRICT $ 19,500 $ 20,000 2. Separate financial review report for the North Fork Water Company $ 2,600 $ 2,800 3. State Controller office Report and Submission $ 850 $ 900 4. Travel Expenses $ 300 $ 300 SUB-TOTAL REQUIRED ITEMS $ 23,250 $ 24,000 OPTIONAL ITEMS: A. Single audit examination of all federal grants $ 1,500 $ 1,500 B. Compilation of the CAFR Document $ 1,000 $ 1,000 C. Audit of Internal Controls (see * below) * * D. Continuing Disclosure Annual Report $ 1,000 $ 1,000 SUB-TOTAL OPTIONAL ITEMS $ 3,500 $ 3,500 GRAND TOTAL $ 26,750 $ 27,500 *C. Fees to be determined based on agreed upon procedures and depth of internal control audit and relevant report requirements. Preparation of the comprehensive financial statements including all financial statements, footnotes, required supplementary information, supplementary information and statistical information are the responsibility of management. Management is also responsible for the implementation of new standards issued by the Governmental Accounting Standards Board. We will provide reasonable assistance in the preparation of the items noted herein, but any significant time needed to complete the financial statements will be billed separately. If the need for additional work comes to our attention, we will immediately bring this to your attention. If you choose to have us perform the additional work, then such work will be performed at the above hourly rates and set forth in an addendum to the contract between the District and Vicenti. East Valley Water District 22 COST BID SCHEDULE OF PROFESSIONAL FEES & EXPENSES – AUDIT SERVICES Audit Hours Standard Hourly Rates Total Partner 12 $ 285 $ 3,420 Sr. Manager/Manager 34 210 7,140 Supervisory Staff 58 125 7,250 Staff 72 100 7,200 Clerical 4 45 180 180 $ 25,190 Professional Discount (4,190) Maximum Audit Fee For Required Items $ 21,000 June 30, 2018 Maximum Audit Fee Required Items $ 21,750 June 30, 2019 Maximum Audit Fee Required Items $ 22,500 CONDITION OF RECORDS The above not-to-exceed fees for audit services assume that your records are in adequate condition. We have not estimated any time for additional services such as compiling financial statement balances or reconciling supporting documentation. The quoted fee is also dependent on all items requested at the pre-audit meeting being completed in the format requested or in a mutually agreed upon format and uploaded to the Client Portal hosted by Vicenti. The Governmental Accounting Standard Board (GASB) has issued various GASB Statements with effective dates beginning in 2016-17 and thereafter. It is management’s responsibility to implement the appropriate GASB Statements as they pertain to the District operations. We can provide assistance with implementation of the new standards under a separate agreement , if the implementation time is significant. An audit planning document will be provided to the District’s audit coordinator. East Valley Water District 23 SAMPLE LIST OF ANTICIPATED SCHEDULES The following is a sample listing of anticipated schedules that the District should already be preparing and not require additional time. A request for information, schedules and documents for the audit will be provided to the District audit coordinator at the pre-audit meeting. The proposed fee is based on all requested items being uploaded to the District client portal hosted by Vicenti five business days prior to the start of fieldwork and adequate internet access. Below are examples of items to be requested. We will request that the District personnel gather invoices and documentation for us; we will give as much notice as possible regarding such requests. In addition, it is imperative that key District personnel are available during the scheduled fieldwork dates. GENERAL AUDIT PACKAGE  Bank reconciliations for all bank accounts in all the District funds.  Reconciled schedule of investment activities by investment types, including investme nt income and realized and unrealized gains and losses.  Detailed capital asset listing that includes equipment, buildings, land, construction in progress and infrastructure.  Depreciation calculation, additions and deletions for all depreciable capital assets.  Schedule of capital lease payments indicating fund and account charged.  Final Accounts Receivable and Accounts Payable listing for all the District funds.  List of all law firms used by the District, including name and address, and the types of services provided by each (i.e. negotiations, personnel, etc.).  Schedule of long term debt, including repayment schedules and interest rates  Schedule of accrued vacation liability at fiscal year end, showing detail by employee name, hours/days accrued, pay rate, salary-related benefits and calculation of current portion of liability, if applicable.  Schedule of retiree benefits liability. Please include details of plan, such as eligibility requirements, number of plan participants, levels of coverage, amounts paid in current fiscal year and budgeted for next year, etc.  Valuation report for CalPERS.  Actuarial report for other post-employment benefits.  Management's Discussion and Analysis.  Copies of relevant board policies, such as investment policies, fund balance commitments and minimum reserve policies. AFFIRM ATION AND AUTHORIZ ATION Please sign and include this page with your proposal. NAME OF BIDDER: Renée S. Graves TITLE: Partner FIRM NAME: Vicenti, Lloyd & Stutzman LLP STREET ADDRESS: 2210 E. Route 66 CITY, ZIP: Glendora, CA 91740 FEDERAL TAX I.D.: 95-2242818 TELEPHONE NUMBER: (626) 857-7300 FAX NUMBER: (626) 857-7302 E-MAIL ADDRESS: RGraves@vicenticpas.com The undersigned declares that he/she is authorized to enter into an agreement on behalf of the above named Company. Signature: B OAR D AG E N D A S TAF F R E P O RT Agenda Item #8. Meeting Date: May 24, 2017 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: Ad opt R es o lutio n 2017.07 - Upd ating the S c hedule of Water and Wastewater R ates and C harges R E C O MM E N D AT IO N: Approve R es o lutio n 2017.07 up d ating the Distric t’s S ched ule o f Water and Wastewater R ates and C harges to reflec t the mo d ified water rate increas e effec tive July 1, 2017. B AC KG R O UN D / AN ALYS IS : At the May 17, 2017, S p ecial Board Meeting, staff presented the fisc al year (F Y) 2017-18 R evenue P ro jec tions whic h inc luded modificatio ns to the P hase 3 water rate adjus tments , ap proved in Marc h o f 2015, that were to b ec o me effective July 1, 2017. P ropos ed modificatio ns include: No P has e 3 inc rease to Meter C harge rates O ne-half of P has e 3 C ommo d ity (Tier) rates Mo d ific ations to C o mmodity rates are reflected in the follo wing tab le: Adoptio n o f the modific atio ns to F Y 2017-18 rates will allow c usto mers more control o ver their water bills, maintain affo rd ability for Tier 1 water which is intended fo r indoor health and s afety need s . In ad ditio n, with thes e mo d ific ations to F Y 2017-18 water rates , the Dis tric t will maintain its fid uciary c o mmitment to ratepayers that, altho ugh water rates will no t dec rease, the District’s Bo ard and s taff will c o ntinuo us ly re-evaluate inc reases to ens ure that rates are o nly rais ed enough to s upport cos ts reas o nab ly b orne. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Brian Tomp kins C hief F inancial O fficer AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice (E) - P ractice transparent & acc o untab le fis cal management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the Ad minis tratio n Department and Legal C o unsel. F IS C AL IMPAC T : Adoptio n of mo d ifications to P has e 3 water rates for F Y 2017-18 will red uc e water revenue b y app ro ximately $1.3 million. ATTAC H M E NTS: Description Type Resolution 201 7.07 Resolution Lette r Schedule of Water and Wastewater Rates and Charges Exhibit East Valley Water District Resolution 2017.07 Page 1 of 5 RESOLUTION 2017.07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING A SCHEDULE OF FEES AND CHARGES FOR WATER SERVICE AND UPDATING EXHIBIT “A” TO RESOLUTION 2017.01 WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31024 and 31027, the District’s Board of Directors adopted Ordinance No. 396 on September 28, 2016, establishing the rules and regulations for water service by the District; and WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31007 and 31025, the District’s Board of Directors is authorized to adopt by resolution such rates for the provision of water service by the District to implement the rules and regulations set forth in Ordinance No. 396 and to yield an amount sufficient to pay the operating expenses of the District, provide for repairs and depreciation of works owned or operated by the District, pay the interest on any bonded debt, and, so far as possible, provide a fund for the payment of the principal of the bonded debt as it becomes due; and WHEREAS, Ordinance No. 396 provides that rates and charges may be changed from time to time or new rates and charges may be established by resolution of the Board of Directors; and WHEREAS, Section 21080(b)(8) of the Public Resources Code provides that the establishment, modification, structuring, restructuring or approval of rates, tolls, fares or other charges by public agencies are exempt from the requirements of the California Environmental Quality Act (CEQA) provided that certain findings are made specifying the basis for th e claim of exemption; and WHEREAS, the actions taken herein are necessary for setting rates, fees, and charges for the provision of water service within the boundaries of the District and are therefore exempt from the requirements of the California Environmental Quality Act as provided by Public Resources Code Section 21080(b)(8); and WHEREAS, Article XIIIB of the Constitution of the State of California, limiting local agencies’ appropriations of proceeds of taxes, excludes user charges or fees or regulatory fees from the definition of proceeds of taxes, so long as such fees and charges do not produce revenue exceeding the costs reasonably borne in providing the regulation, product or service, and further excludes appropriations for debt service and appropriations for qualified capital outlay projects from appropriations subject to limitation; and East Valley Water District Resolution 2017.07 Page 2 of 5 WHEREAS, the Board of Directors of the District deems it advisable and finds that it would be in the best interest of the District to amend or establish certain rates and charges, consistent with applicable constitutional and statutory requirements; and WHEREAS, Article XIIID of the Constitution of the State of California provides that, in imposing or increasing any property-related fee or charge (which term was held by the California Supreme Court in July, 2006, in the case Bighorn-Desert View Water Agency vs. Virjil, to include charges for water delivery), an agency shall provide written notice by mail of the proposed fee or charge to the record owner of each identified parcel upon which the fee or charge is proposed for imposition, the amount basis of calculating, and reason for such proposed fee or charge, and the date, time, and location of a public hearing on the proposed fee or charge to be conducted not less than 45 days after the mailing of said notice, and Government Code Section 53755 provides for such notice to be given by mailing to the address where billing statements are customarily sent by the District; and WHEREAS, said mailed notice was given, setting Wednesday, March 25, 2015, at the hour of 5:30 p.m. of said day in the Board of Directors Room of the District, 31111 Greenspot Road, Highland, California, as the time and place for a public hearing on the proposed increases in water rates and charges and any proposed new property-related rates and charges set forth in Exhibit “A” to Resolution 2015.04; and WHEREAS, at the time set, the duly noticed public hearing was held and all persons interested were given an opportunity to be heard concerning the increases in property-related rates and charges and any proposed new property-related rates and charges; and WHEREAS, the Board of Directors considered all protests presented to the District by owners of identified parcels against the proposed increases in property-related rates and charges and any proposed new property-related rates and charges at the time; WHEREAS, the District adopted Resolution 2015.04, and Exhibit “A” thereto, establishing a schedule of rates and charges for the provision of water service on March 25, 2015 after conducting a duly noticed public hearing on the matter. Said schedule of rates and charges for water service remains unchanged. The current schedule of rates and charges for water service is attached hereto as Exhibit “A” to this Resolution; and WHEREAS, Phase 3 of the most recently adopted schedule of rates and charges for water service set forth in Exhibit “A” to this Resolution is currently set to take effect on July 1, 2017; and WHEREAS, the District now elects to implement only a portion of the Phase 3 fees and charges for water service previously approved by the District as set forth in Exhibit “A” to this Resolution; and WHEREAS, the District’s updated schedule of fees and charges for water service is attached hereto as Exhibit “A” to this Resolution and reflects an increase in rates and charges that is less than the increase scheduled under previously approved schedule of fees and charges; and East Valley Water District Resolution 2017.07 Page 3 of 5 WHEREAS, the amount of the rates and charges hereby adopted do not exceed the reasonable anticipated costs for the corresponding services provided by the District, and therefore the fees imposed hereby do not qualify as a “tax” under Article XIIIC, Section 1(e), of the California Constitution or Section 50076 of the California Government Code, and the actions taken herein are exempt from the additional notice and public meeting requirements of the Brown Act pursuant to Government Code Section 54954.6(a)(1)(A) and (B); and WHEREAS, the District has satisfied all of the substantive and procedural prerequisites of Article XIIID of the California Constitution in establishing the rates and charges set forth herein, including but not limited to, the identification of the parcels upon which the rates and charges will be imposed; the calculation of the rates and charges; the mailing of written notice to the record owners of each parcel upon which the rates and charges will be imposed describing the amount thereof, the basis upon which the rates and charges were calculated, the reason for the rates and charges, and the date, time, and location of the public hearing to be held thereon; and the conducting of a public hearing on the rates and charges not less than 45 days after mailing the notice during which all protests against the fee were considered. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District as follows: Section 1. It is hereby reiterated that the written protests against the current schedule of rates and charges for water service received by the District prior to the close of the public hearing thereon, represented less than a majority of the parcels subject to the rates and charges set forth therein and, thus, the District’s Board of Directors further found and ordered that the public interest and necessity required the adoption of the rates and charges for water service by the District in accordance with Ordinance No. 396, as well as affirmation and ratification of all prior rates and charges previously adopted by the District’s Board of Directors. Section 2. It is hereby found and determined that the proposed changes to the Schedule of Rates and Charges are within the purposes set forth in Section 21080(b) of the Public Resources Code including but not by way of limitation, the purposes of (1) meeting operating expenses, (2) purchasing or leasing supplies, equipment or materials, (3) meeting financial reserve needs and requirements, and (4) obtaining funds for capital projects necessary to maintain service within existing areas, and therefore, that such changes are exempt from CEQA. Section 3. It is hereby found and determined that the rates and charges of the District are imposed on the basis of demand as determined by measurements including water metering and meter size, acreage or other demand-generation characteristics of properties requesting connection, and cost of service restoration, inspection and other services provided for all fees; that such rates, charges and fees are imposed upon the request for or use of services; and that the water user charges satisfy the criteria and requirements of Water Code Section 370 et seq. relating to allocation-based conservation water pricing. Section 4. It is hereby found and determined that relative to Article XIIIB of the Constitution of the State of California, the user charges and fees and regulatory fees established or increased hereby do not produce revenues exceeding the costs reasonably borne in providing the East Valley Water District Resolution 2017.07 Page 4 of 5 regulation, product or service and/or are used for debt service or qualified capital outlay projects and accordingly do not constitute proceeds of taxes, the appropriation of which is limited under Article XIIIB, and that the documentation used in making such determinations has been on file in the office of the District for not less than 15 days prior to the days prior to the date hereof, pursuant to Section 7910 of the Government Code of the State of California. Section 5. The revisions to the previously approved rate(s), fee(s) and/or charge(s) as set forth in Exhibit “A” attached to this resolution and by this reference incorporated herein are hereby adopted in conformity with the authority set forth in Section 14.01 of Ordinance 396, and the corresponding rate(s), fee(s) or charges(s), if any, as set forth in Ordinance 396 currently in effect, are hereby superseded. Staff is directed to incorporate the hereby adopted new and/or revised rate(s), fee(s) and/or charge(s) into Exhibit “A” attached hereto. Section 6. That the provisions of this Resolution shall be effective July 1, 2017. Section 7. That the Secretary is hereby ordered and directed to post a certified copy of this Resolution in a public place within the District. Section 8. Exhibit “A” to Resolution 2017.01 is hereby updated: This Resolution shall take effect as of the 1st day of July 2017. ADOPTED this 24th day of May 2017. ROLL CALL: Ayes: Noes: Absent: Abstain: Ronald L. Coats Board President East Valley Water District Resolution 2017.07 Page 5 of 5 May 24, 2017 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2017.07 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held May 24, 2017. ATTEST: _____________________________ John Mura Board Secretary EXHIBIT “A” EAST VALLEY WATER DISTRICT SCHEDUL E O F WATER AND WASTEWATER RATE S AND CHARGES UPDATED MAY 24, 2017 i Table of Contents Section 1: Water Service Charges............................................................ 2 Monthly Water System Charge ............................................................. 2 Commodity Charges: Potable Water ...................................................... 2 MWD Surcharge ................................................................................ 3 Private Fire Protection Service ............................................................ 4 1. Commercial Standby Charge ........................................................... 4 2. Fire Flow Testing ........................................................................ 4 Temporary Water Service Connection .................................................... 5 Monthly Service Charge ..................................................................... 5 1. Commodity Charge ...................................................................... 5 2. Meter Deposit ............................................................................ 5 3. Unauthorized use of Water Charge ................................................... 5 New Account Fees for Water Services .................................................... 6 1. Service Initiation Charge ............................................................... 6 2. Security Deposit.......................................................................... 6 Miscellaneous Water Service Charges and Fees ......................................... 6 1. Delinquency Charge ..................................................................... 6 2. Returned Payment Charge.............................................................. 6 3. Disconnection Notice Charge .......................................................... 6 4. Service Reconnect Charge (Business Hours) ......................................... 6 5. Service Reconnect Charge (After Hours) ............................................. 6 6. Meter Test Charge ....................................................................... 7 7. Annual Backflow Compliance Test (per device) ..................................... 7 8. Backflow Device Installation Fee ...................................................... 7 9. Backflow Device Annual Administration Fee (per device) ......................... 7 Section 2: Wastewater Service Charges .................................................... 8 Monthly Wastewater System Charge ...................................................... 8 Collection Charges ........................................................................... 8 ii Treatment Charges .......................................................................... 9 Section 3: Developer Services ............................................................... 12 Water Connection Fees ..................................................................... 12 Wastewater Connection Fees.............................................................. 13 Fire Service Connection Charges ......................................................... 13 Developer Services Charges and Fees ................................................... 14 1. Front Footage Charge ................................................................. 14 2. Water Main Extension Charge ........................................................ 14 3. Fire Hydrant Installation Charge .................................................... 14 4. Special Facility Charge ................................................................ 14 5. Construction Inspection Charge ..................................................... 14 6. Water System Design Charge ......................................................... 15 7. Engineering Service Charges ......................................................... 15 8. Sewer Manhole and Valve Can Deposit ............................................. 15 9. Research Fee (flat rate, 4 hour minimum) ......................................... 15 10. Development Meeting Fee (after first meeting) .................................. 16 11. Annual Backflow Compliance Test (per device) ................................... 16 12. Backflow Inspection Fee (per inspection) .......................................... 16 13. Water Quality Sampling Fee (per sample) ......................................... 16 14. New Construction Chlorination and Flushing Fee ($225 minimum to actual cost) .......................................................................................... 16 History of Revisions ............................................................................ 18 1 [THIS PAGE IS INTENTIONALLY BLANK] 2 Section 1 : Water S ervice Charges Monthly Water S ystem Charge The water system charge is the monthly availability charge applicable to all metered water services, and shall apply whether or not premises served by the meter are occupied. The charges, which vary by meter size, are established at the amounts listed in the table below. 6/1/2015 7/1/2016 7/1/2017 5/8"20.96$ 23.06$ 23.06$ 3/4"26.61$ 29.27$ 29.27$ 1"37.92$ 41.71$ 41.71$ 1 1/2"66.19$ 72.81$ 72.81$ 2"100.12$ 110.13$ 110.13$ 3"207.54$ 228.30$ 228.30$ 4"365.85$ 402.44$ 402.44$ 6"744.67$ 819.14$ 819.14$ 8"1,366.62$ 1,503.28$ 1,503.28$ Meter Size Rates Effective on: Commodity Charges: Pota ble Water Commodity Charges are billed on a per unit basis for water consumption registered by the water service meter. One unit is 100 cubic feet (hcf) of water, which is equal to 748 gallons. 6/1/2015 7/1/2016 7/1/2017 Tier 1 - Indoor Use 1.45$ 1.63$ 1.73$ Tier 2 - Outdoor Use 2.07$ 2.32$ 2.46$ Tier 3 - Inefficient Use 2.89$ 3.24$ 3.44$ Tiers Rates Effective on: 3 MWD Surcharge The MWD surcharge rate (per hundred cubic feet) for all customer types is as follows Effective 6/1/2015 Rate per HCF $0.00 The MWD Surcharge Rate represents increased costs associated with water imported from the State Water Project. The charge to the District for State Water Project imported water is established by the San Bernardino Valley Municipal Water District. Since the District has no control over the adoption or imposition of MWD water charges, imposed through San Bernardino Valle y Municipal Water District for the delivery of imported water to the District, EVWD may pass-through, for a five year period beginning June 1, 2015 any increases in the cost of MWD imported water imposed by the San Bernardino Valley Municipal Water Distric t. 4 Private Fire Protection Service 1. Commercial Standby Charge The fire service standby charge is the monthly charge assessed per inch diameter of the District fire service meter. Water use through this service is limited to emergency fire requirements only. 6/1/2015 7/1/2016 7/1/2017 1"7.97$ 8.78$ 9.40$ 1 1/2"11.98$ 13.18$ 14.10$ 2"15.97$ 17.57$ 18.80$ 3"23.96$ 26.35$ 28.20$ 4"31.94$ 35.14$ 37.59$ 6"47.91$ 52.70$ 56.39$ 8"63.88$ 70.27$ 75.19$ 10"79.85$ 87.84$ 93.99$ Meter Size Rates Effective on: 2. Fire Flow Testing The fire flow test charge is a flat rate established to cover the District’s time and effort for testing parts of the water system to obtain fire flow test data and calculate results as requested. The District will charge a one-time fee of $100.00 to administer fire flow tests. 5 Temporary Water Service Connection A temporary service is available through the use of a fire hydrant. A customer deposit for the temporary service will be required, and all other applicable service charges shall apply. Monthly Service Charge Refer to the schedule of Monthly Water System Charges for three inch (3”) meters. 1. Commodity Charge Commodity charges for temporary services shall be bill ed at the Tier 3 rates based on the Potable Water Commodity Rates. When available, and feasible, recycled water shall be used for temporary construction uses. The Commodity Charge shall be as follows: Area Rate/100 Cubic Feet Potable Tier 3 Rate Recycled TBD 2. Meter Deposit A deposit equal to the replacement cost of the construction meter shall be collected at the time of service application. Currently, the replacement cost is estimated to be $1,800.00. The deposit will be applied to the closing bill and any remaining amount refunded to the customer. Lost meters will result in forfeiture of the deposit. 3. Unauthorized use of Water Charge The unauthorized use of water charge shall be charged to any person, organization or agency for each unauthorized use of District water or for tampering in any manner with any meter belonging to the District where this tampering shall affect the accuracy of such meter. The unauthorized use of water charge is hereby established at the rate of $500.00 for a first occurrence and $1,000.00 for each subsequent occurrence. 6 New Account Fees for Water Services The following fees are applicable to all requests for new service, or transfer of an existing account to a new location: 1. Service Initiation Charge The service initiation charge is a non-refundable charge of $30.00 per account, which covers the reasonable District costs for initiating water service. 2. Security Deposit A deposit of $150.00 will be required until a one year payment history, with fewer than two delinquencies, has been established . The deposit insures payment of minimum District charges. Miscellaneous Water Service Charges and Fees 1. Delinquency Charge Rates and charges which are not paid on or before the due dates shall be subject to interest charges. Interest will be calculated at a rate of one and one -half percent (1 ½%) on all amounts that remain unpaid at the end of each billing cycle. 2. Returned Payment Charge A returned check charge is a charge which covers the reasonable administrative cost and banking charges for processing a returned check. 3. Disconnection Notice Charge The disconnect notice charge is the charge which covers reasonable Distri ct costs to notify customers that their water service is subject to impending termination. 4. Service Reconnect Charge (Business Hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection du ring regular business hours, of service connections which are in violation of the provisions contained herein. 5. Service Reconnect Charge (After Hours) The service reconnect charge is the charge which covers the reasonable District costs for disconnection and reconnection during non-business hours, of service connections which are in violation of the provisions contained herein. 7 6. Meter Test Charge The meter test charge is the charge which covers the District costs for removing, bench testing, and reinstalling the water meter to be tested. 7. Annual Backflow Compliance Test (per device) A fee of $5.00 per month will be charged to the customer when the annual backflow compliance test is performed by District staff. The customer will only be billed as a lump sum when District standards regarding the inspection, testing, and maintenance of customer-owned backflow assemblies are not followed. 8. Backflow Device Installation Fee Installation of new backflow prevention assemblies completed by the District will be done at actual cost. 9. Backflow Device Annual Administration Fee (per device) The District shall appoint at least one person trained in cross -connection control to administer and ensure all District standards are met. This backflow device annual administration fee will be assessed annually. Charge or Fee Name Charge/Fee Delinquency Charge 1.5% Returned Payment Charge $20.00 Disconnect Notice Charge $23.00 Service Reconnect Charge (Business Hours)$70.00 Service Reconnect Charge (After Hours)$150.00 Meter Test Charge $75.00 Annual Backflow Compliance Test $ 60.00 ($5.00 per month) Backflow Device Installations Actual Cost Backflow Annual Administration Fee $20.00 (per device) 8 Section 2 : Wastewater Service Charges Monthly Wastewater System Charge Collection Charges Collection charges were established to maintain the District's wastewater collection lines. A. Residential Customers (1 – 3 units) The collection charge for residential customers is a monthly fixed charge. Customer Class Charge West of Boulder Avenue 15.36$ East of Boulder Avenue 17.36$ B. Commercial Customers The collection charges for commercial customers include a small fixed charge plus a volumetric charge (water usage). Commercial accounts east of Boulder have an additional $0.09/hcf (hundred cubic feet) charge. Customer Class Charge Fixed Charge 3.90$ 9 Volumetric Charge (per HCF): Customer Class Boulder Avenue Boulder Avenue Multi-Family (4 or more units, Mobile Home Park)0.55$ 0.64$ Commercial/Retail (Non-Office, Bakery, Market)0.55$ 0.64$ Restaurant/Lounge 0.55$ 0.64$ Laundromat 0.55$ 0.64$ Dry Cleaner 0.55$ 0.64$ School/Church (Daycare, Nursery School)0.55$ 0.64$ Office Building/Motel (without a restroom, Municipality) 0.55$ 0.64$ Convalescent Home 0.55$ 0.64$ Treatment Charges The District pays treatment charges established by the City of S an Bernardino for the operation and maintenance of their wastewater treatment facilities. Any future increases made by the City over the next five years following the previous public hearing, held on January 25, 2017, may be automatically passed through and incorporated herein by this reference, by action of the District’s Board of Directors to the extent authorized by Government Code Section 53756 and any other applicable provision of law. A. Residential Customers Treatment charges for residential customers are a monthly fixed charge. 7/1/2016 7/1/2017 Residential 20.85$ 21.55$ Multi-Family (2 Units)41.72$ 43.10$ Multi-Family (3 Units)62.58$ 64.64$ Customer Class Rates Effective on: 10 B. Commercial Customers Treatment charges for commercial customers include a small fixed plus a volumetric charge (water usage) which varies depending on the nature of the commercial entity. Fixed Charges: 7/1/2016 7/1/2017 Multi-Family (4+ Units), Mobile Home Parks 1.90$ 1.97$ Non-Residential Customer Classes 3.42$ 3.52$ Customer Class Rates Effective on: Volumetric Charges (per HCF): 7/1/2016 7/1/2017 Multi-Family (4+ Units), Mobile Home Parks 1.48$ 1.53$ Commercial / Retail 2.47$ 2.55$ Restaurants / Lounges 3.18$ 3.28$ Laundromats 1.77$ 1.83$ Dry Cleaners 2.47$ 2.55$ Schools / Churches 1.29$ 1.33$ Governments / Municipal 1.77$ 1.83$ Convalescent Homes 1.58$ 1.63$ Hotels (with Restaurants)3.18$ 3.28$ Offices Buildings / Motels 1.77$ 1.83$ Auto Repair / Service Station 1.53$ 1.58$ Car Wash 1.53$ 1.58$ Rates Effective on: Customer Class 11  Users other than Residential: Rates for users other than “residential” shall be computed on the basis of actual consumption as reflected by water meter readings for the billing period. Such water consumption may be reduced for the purpose of establishing sewer service charges subject to “seasonal” or “consumptive” use as recognized and approved by the Board of Directors.  Unmetered Commercial Dischargers: Unmetered commercial dischargers shall be billed as follows: Residential units in apartments, condominiums, and mobile home parks shall be billed for each dwelling unit at the rate established for single -family dwelling units. Other commercial dischargers shall be billed at a rate determined by the General Manager, based on experience from similar metered dischargers. 12 Section 3: Developer Services Water Connection Fees The water service connection charge is the charge for the type and size of water service connection desired. Such regular charge shall be pai d in advance by the applicant. Where there is no regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. Harmony Non-Harmony 3/4"5,200.00$ 4,607.00$ 1"8,684.00$ 7,694.00$ 1 1/2"17,316.00$ 15,343.00$ 2"27,714.00$ 24,556.00$ 3"51,997.00$ 46,072.00$ 4"86,741.00$ 76,858.00$ 6"173,165.00$ 153,434.00$ 8"311,983.00$ 276,434.00$ 10"519,971.00$ 460,723.00$ Meter Size Capacity Charge Installation charges will be estimated by the District based on availability of District staff to complete the work and site specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation then an administrative fee of 5% of the estimate will be charged. 13 Wastewater Connection Fees The sewer service connection charge is the charge for the type and size of service connection desired. Such regular charge shall be paid in advance by the applicant. Where there is no such regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. The following charges are hereby established and shall be collected at the time of application for sewer connection: Charge or Fee Name Permit Charge 25.00$ per connection Inspection Charge 100.00$ per connection District Conveyance Capacity Charge 3,099.00$ per EDU or portion thereof Trunk Sewer Charge 158.00$ per EDU or portion thereof Charge/Fee The City of San Bernardino Water Reclamation Plant currently treats all wastewater flows generated by residential and commercial dischargers within the East Valley Water District service area. Accordingly, the City is responsible for establishing the Wastewater Treatment Capacity fee collected by the District for new development. The current fee established by the City is $3,500 per equivalent dwelling unit (EDU). Fire Service Connection Charges The fire service charge is the charge for the type and size of fire service connecti on desired. Such regular charge shall be paid in advance by the applicant. Where there is no regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. Installation charges will be estimated by the District based on availability of District staff to complete the work and site specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation the n an administrative fee of 5% of the estimate will be charged. 14 Developer Services Charges and Fees 1. Front Footage Charge The front footage charge is a one-time reimbursement to the District for previously constructed water mains adjacent to all sides of an unimproved property to be serviced. This charge is hereby established at a rate of $30.00 per lineal foot. 2. Water Main Extension Charge The water main extension charge is for the construction of a water main extending to the far side of the property to b e served. This charge shall be based on the prevailing rates of time and material per District approved plans. The customer shall be responsible to provide the plans and for all applicable Engineering Services charges described below. 3. Fire Hydrant Installation Charge Installation charges will be estimated by the District based on availability of District staff to complete the work and site specific construction conditions and requirements. If the applicant elects not to have District staff complete the installation then an administrative fee of 5% of the estimate will be charged. 4. Special Facility Charge A special facility charge shall be required for development of limited service whenever special facilities, including pressure regulators are required. The c harge to be made to a developer or owner of land that is considered by the District to be within a limited service area shall be based upon the developer’s or landowner’s proportionate share of the cost for the installation of such Special Facility. Such proportionate share to be borne by the developer or landowner shall be based on the percentage of such development to the entire limited service area to be served by the Special Facilities; and the same number of acres or area under normal conditions and the cost of facilities to serve the acreage of area under special conditions at a higher cost. 5. Construction Inspection Charge Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such in spection at the rate of $900.00 per day. When District personnel are not available, inspection will be performed by third party inspectors retained by the District. The hourly rate for third party inspectors will be established at the beginning of each thi rd party inspection assignment. 15 6. Water System Design Charge A water system design charge shall be required for all main extensions, service connections and/or special facilities requiring the preparation of engineering plans and drawings. The water system design charge is hereby established as that fee charged by an engineering firm of the District’s choosing, plus an additional 10% thereof for the District’s administrative costs. In the event the costs exceed the fees charged, the additional cost will be billed to the customer. 7. Engineering Service Charges The Engineering Services charge is a fee for the District’s time and effort spent on assisting customers who have a requirement to construct water or sewer main extensions, or other water and/or sewer facilities, which must meet District needs and conform to District standards. This fee includes time and effort the District spends on plan checking, plan and easement development, and all other related work. Prior to submission of any documents requiring work by the District, a non- refundable minimum charge in the amount of 10% of the engineer’s estimated cost for the project shall be submitted to the District. The work will be accomplished on a time and effort basis. Should the District require more fund s than the original charge, the additional costs will be billed and must be paid prior to allowing water and/or sewer service to the project. 8. Sewer Manhole and Valve Can Deposit A refundable deposit of $1,500.00 per manhole will be charged for each sewer manhole structure shown on the sewer construction plans. A refundable deposit of $500 per valve can will be charged for each valve can as shown on the water construction plans. These deposits will be returned when all manholes and valve cans are constructed to final grade by the developer’s contractor and verified by the District. As an alternative to the manhole and valve can deposit, a guarantee bond may be provided in the same amount as the deposit. The guarantee bond shall contain covenants that are satisfactory to the District. Such bond shall remain in force until all manholes and valve cans are constructed to final grade by the developer’s contractor and verified by the District. 9. Research Fee (flat rate, 4 hour minimum) This $200.00 fee will provide funding for engineering staff to conduct research and provide copies of materials to developer engineers ’ such as plans, easements, and other development related materials. This would only apply to obtaining information 16 for developers that is unique to their development area and not general information such as fee schedules or District design standards. 10. Development Meeting Fee (after first meeting) This $250.00 per hour fee will provide funding for engineering staff to prepare for and attend, meetings with developers regarding their projects beyond the initial project consultation meeting and set-up. This fee will impact primarily larger more complex developments which may require multiple coordination meetings with staff. 11. Annual Backflow Compliance Test (per device) A fee of $60.00 will be charged to the developer after newly installed and inspected devices (performed by District staff) are complete. 12. Backflow Inspection Fee (per inspection) A fee of $80.00 will be charged for each backflow inspection of newly installed backflow prevention devices, in accordance with District standards. 13. Water Quality Sampling Fee (per sample) A fee of $110.00 will be charged for each water quality sample taken for new construction. 14. New Construction Chlorination and Flushing Fee ($225 minimum to actual cost) A minimum fee of $225.00 will be charged for new construction disinfection plan review, inspection, and flushing prior to sampling. 17 Charge or Fee Name Charge/Fee Front Footage Charge $30.00 (per lineal foot) Water Main Extension Charge Fire Hydrant Installation Charge Actual cost or 5% of estimate Special Facility Charge Construction Inspection Charge $900.00 (per day) or actual cost Water System Design Charge Actual cost + 10% Engineering Service Charges 10% (of Engineer's estimated project cost) Sewer Manhole and Valve Can Deposit $1,500.00 (per manhole); $500.00 (per valve can) Research Fee $200.00 (flat rate, 4 hour minimum) Development Meeting Fee $250.00 (per hour, after first meeting) Annual Backflow Compliance Test $60.00 (per device) Backflow Inspection Fee $80.00 (per inspection) Water Quality Sampling Fee $110.00 (per sample) New Construction Chlorination and Flushing Fee $225.00 (minimum to actual cost) 18 History of Revisions DATE ADOPTED RESOLUTION UPDATED OR RESCINDED REVISION DATE EFFECTIVE 05/24/17 2017.07 2017.01 Update Water Fees 07/01/17 01/25/17 2017.01 2016.05 Update Wastewater Treatment Fees and Renew 5-Year Pass Through Provision 07/01/17 02/24/16 2016.05 2015.04 Update Wastewater and Miscellaneous Fees 04/01/16 03/25/15 2015.04 2014.32 Implement Water Budget Based Rates 06/01/15 03/25/15 2015.04 Ord 391 Update Wastewater Fees 06/01/15 B OAR D AG E N D A S TAF F R E P O RT Agenda Item #9. Meeting Date: May 24, 2017 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: Ad opt R es o lutio n 2017.08 - S upport placing in no mination James Morales , Jr. a member of the As soc iation o f C alifo rnia Water Agenc ies (AC WA) R egio n 9 Bo ard Memb er R E C O MM E N D AT IO N: Approve R es o lution 2017.08 to s upport p lacing in nominatio n James Mo rales Jr. as a member o f the Assoc iatio n o f C alifo rnia Water Agenc ies (AC WA) R egion 9 Bo ard Memb er. B AC KG R O UN D / AN ALYS IS : AC WA R egion 9 is compris ed o f S an Bernardino , R iverside, and Imperial counties inc luding appro ximately 49 p ub lic water agenc y members. T he region spans roughly 32,000 s quare miles and is ho me to a populatio n of just o ver 4.2 millio n residents . AC WA’s R egion 9 Board is s eeking members who are interested in filling Board Member p o sitio ns for the 2018-2019 term. T he R egio n 9 Board members determine the d irec tion and fo cus o f regio nal is s ues and ac tivities and s upport the fulfillment of AC WA’s goals on b ehalf of its members . Direc tor Morales is currently s erving as a Board Memb er o n AC WA R egion 9 and is seeking re-ap p o intment on the b o ard, as his term expires in 2017. In o rder for c andidates to be c o ns id ered fo r a Board Member pos ition, they mus t o b tain a R es olution o f s up p o rt fro m the member agenc y (Eas t Valley Water Dis tric t), c o mp lete the nec es s ary fo rms, and sub mit the reques ted info rmatio n to AC WA b y June 30, 2017. S taff is rec ommending that the Board of Direc to rs s upport Direc tor Mo rales’ interest in s erving as a AC WA R egio n 9 Bo ard Member. AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice (D) - Maximize s taff and G o verning Bo ard capabilities through ongo ing p ro fes sional development R ec o mmend ed b y: John Mura G eneral Manager/C EO Id eals and Endeavor I I I - Demons trate Vis io nary Lead ers hip To Enhance Dis trict Id entity (B) - S trengthen regio nal, s tate and national p artnership F IS C AL IMPAC T : T he fis c al impact ass ociated with this agend a item is a budgeted exp enditure. (Direc tors fees and expens es ) ATTAC H M E NTS: Description Type Resolution 201 7.08 Resolution Lette r AC WA Region 9 Memorandum Backup Material AC WA Nomination Form Backup Material AC WA Region 9 Rules & Regulations Backup Material RESOLUTION NO. 2017.08 A RESOLUTION OF THE BOARD OF DIRECTORS OF EAST VALLEY WATER DISTRICT PLACING IN NOMINATION JAMES MORALES JR. AS A MEMBER OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES REGION 9 Be it resolved by the Board of Directors of East Valley Water District as follows: A. Recitals (i) The Board of Directors of the East Valley Water District does encourage and support the participation of its members in the affairs of the Association of California Water Agencies (ACWA). (ii) Director James Morales, Jr., is currently serving as Board Member for ACWA Region 9. B. Resolves NOW, THEREFORE, BE IT RESOLVED THAT THE BOARD OF DIRECTORS OF EAST VALLEY WATER DISTRICT, (i) Does place its full and unreserved support in the nomination of James Morales, Jr. for the Board Member of ACWA Region 9. (ii) Does hereby determine that the expenses attendant with the service of James Morales, Jr. in ACWA Region 9 shall be borne by the East Valley Water District. Adopted and approved this 24th day of May 2017. ____________________________________ Ronald L. Coats, Board President East Valley Water District ATTEST: _____________________________ John Mura, Secretary I, John Mura, Secretary of the Board of Directors of East Valley Water District, hereby certify that the foregoing Resolution was introduced at a regular meeting of the Board of Directors of said District, held on the 24th day of May 2017, and was adopted at that meeting by the following roll call vote: AYES: NOES: ABSENT: ATTEST: _______________________________ John Mura, Secretary to the Board of Directors of East Valley Water District B OARD AGE ND A S TAF F RE P ORT Agend a Item #10. Meeting Date: May 24, 2017 Dis cus s io n Item To: G overning Bo ard Memb ers From: G eneral Manager/C E O S ubject: Dis po sition o f S urplus P roperty R E C OMME ND AT IO N: S taff is reco mmend ing that the Board o f Direc to rs autho rize the disp os itio n of s urplus p rop erty. B ACKGR O UN D / AN ALYS IS : Unit #243 is a 2006 G MC S ierra 1500 Hybrid with 92,850 miles . T his vehicle has been id entified for surplus b ec ause it has a bad s tator, whic h starts the truc k, and there are no rep lac ement parts available. T he G MC d ealership has no rec ommendation to rep air the truc k. S taff reco mmend s that the 2006 G MC S ierra 1500 Hyb rid be classified as s urp lus and the vehicle b e s ent to a rec yc ling yard. DI S C US S IO N: T he follo wing vehic le has b een id entified fo r surp lus: No.Vehicle Details Miles R easo n for S urp lus 243 2006 G MC S ierra 1500 Hybrid VI N#: 1G T E C 19T 46Z297195 92,850 Vehic le req uires a new s tato r which is no longer available. R ec ommended by: John Mura G eneral Manager/C E O R es pectfully submitted: P atric k K. Milroy O perations Manager AG E N C Y ID E ALS AN D E N D E AVO R S: Id eals and End eavo r I V - F ully Und erstand C hallenges To C ultivate Effective S o lutio ns (E) - C o nduc t p os t implementatio n evaluations and make imp rovements as neces sary R E VIE W B Y O T HE R S: T his agenda item has been reviewed b y O perations , Adminis tration, and P ublic Affairs s taff. F IS C AL IMPAC T : F und s have been b udgeted for rep lac ement of this vehicle in F is c al Year 2017-18.