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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/28/2017REGULAR BOARD MEETING Closed Session Begins at 4:00 PM June 28, 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: City of San Bernardino v. East Valley Water District, et al., San Diego Superior Court Case No. 37-2016-00038119-CU-WM-CTL 3.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 4.CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4) One Potential Case 5:30 PM RECONVENE MEETING PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTIONS ITEMS PUBLIC COMMENTS 5. 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. June 7, 2017 special meeting minutes b. May 2017 Disbursements: Accounts payable disbursements for the period include check numbers 250086 through 250297, bank drafts, and ACH Payments in the amount of $2,897,747.29 and $301,312.15 for payroll. c. Financial Statements for May 2017 d. Resolution 2017.10 - Paloma Road Sewer Main Rehabilitation Notice of Completion e. Resolution 2017.11 - North Fork Pipeline Rehabilitation Notice of Completion DISCUSSION AND POSSIBLE ACTION ITEMS 6.Adopt the Proposed FY 2017-18 Operating and Capital Budget REPORTS 7.Board of Directors' Reports 8.General Manager/CEO Report • Water Quality Update 9.Legal Counsel Report 10.Board of Directors' Comments ADJOURN PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District's office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District's website at www.eastvalley.org subject to staff's ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above- agendized public meeting should be directed to the District Clerk at (909) 885-4900 at least 72 hours prior to said meeting. 1 Minutes 6/7/2017 smg Draft pending approval EAST VALLEY WATER DISTRICT June 7, 2017 SPECIAL BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 5:30 p.m. Mr. Wayne Brown led the flag salute. PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Steve 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 5 :31 pm. Mr. Anthony Serrano, East Highlands Ranch property owner, made comments regarding items in the draft budget and indicated that the General Manager/CEO stated he would follow up with him on questions he had during the board meeting. There being no further written or verbal comments, the public participation section was closed at 5:33 p.m. REVIEW DRAFT BUDGET FOR FY 2017-18 The General Manager/CEO stated that this is the third meeting in a series of budget workshops and reminded the Board and the public that the District is a performance based organization where the Board approved a set of goals and objectives for the General Manager/CEO. The Chief Financial Officer recited district-wide goals, and reviewed a summary of the operating budget, district-wide revenues and expenses, a program overview of each department, capital outlay, and capital improvement projects. The Board had several questions including but not limited to: emergency preparedness documents, telecommunication audit, the added Environmental Compliance Officer 2 Minutes 6/7/2017 smg position, water quality, capital improvement program figures, the hydro-generation plant, and two-way radios for emergency preparedness. Director Shelton expressed her appreciation with the work that went into the budget. Chairman Coats pointed out that the cost of water is very inexpensive, but the cost of delivery is approximately 97 percent of the customers’ bill; and stated that he was pleased with the information included in the draft budget and thanked staff for their hard work on it. Information only. GENERAL MANAGER/CEO REPORT No reports at this time. LEGAL COUNSEL REPORT No reports at this time. BOARD OF DIRECTORS’ COMMENTS Director Morales asked the General Manager/CEO who they contact if they have questions regarding the budget, and he replied that they should email questions to him and he will forward them to the appropriate department. Director Morales commended staff on the budget documents. Chairman Coats thanked staff for their work on the budget and he closed the meeting with the following statement, “Help ensure your water future by supporting the Sterling Natural Water Resource Center”. Information only. ADJOURN The meeting adjourned at 6:23 p.m. ___________________________ Ronald L. Coats, Board President __________________________ John Mura, Secretary B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5.b. Meeting Date: June 28, 2017 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: May 2017 Dis b urs ements: Ac c ounts p ayab le d is b urs ements fo r the period includ e check numb ers 250086 through 250297, bank d rafts , and A C H P ayments in the amo unt o f $2,897,747.29 and $301,312.15 fo r payroll. R E C O MM E N D AT IO N: S taff recommends that the Bo ard of Direc to rs review and ap p rove the Distric t’s expense d isburs ements for the p eriod May 1, 2017 thro ugh May 31, 2017 in the amount of $3,199,059.44. B AC KG R O UN D / AN ALYS IS : In the c o ntinued effort to b e fis c ally trans parent, the payment register fo r sup p lies, materials , servic es , and p ayro ll fo r May 2017 is attac hed for review and appro val. T his p roc es s p ro vid es the Board and the pub lic an o pportunity to review the exp ens es o f the Dis tric t. Acc o unts P ayable is p roc es s ed weekly, while p ayro ll is p roc es s ed b i-weekly. I nfo rmatio n to jus tify each expend iture is available through the F inance Department. Ac counts p ayab le dis b urs ements fo r the perio d inc lude c hec k numbers 250086 through 250297, b ank drafts, and AC H P ayments in the amount of $2,897,747.29 and $301,312.15 fo r p ayro ll. S ignificant expenses greater than or equal to $50,000 are further explained b elo w: 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 F IS C AL IMPAC T : S ufficient funds have been budgeted in the adopted F Y 2016-17 B udget. ATTAC H M E NTS: Description Type M ay 2 017 P ayment Register Backup Material PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/3/2017 250086 BRAEMAR DEVELOPMENT 3,743.33 5/3/2017 250087 AIDE ORONA 62.15 5/3/2017 250088 JULIE STAHL/ANDERSON 8.94 5/3/2017 250089 INLAND PROPERTY SOLUTIONS 36.82 5/3/2017 250090 CJN 76.84 5/3/2017 250091 TIGER C YANG 60.58 5/3/2017 250092 WATER STREET LAND LLC 45.65 5/3/2017 250093 WATER STREET LAND LLC 77.80 5/3/2017 250094 WATER STREET LAND LLC 52.93 5/3/2017 250095 WATER STREET LAND LLC 65.54 5/3/2017 250096 WATER STREET LAND LLC 40.50 5/3/2017 250097 WATER STREET LAND LLC 61.15 5/3/2017 250098 WATER STREET LAND LLC 48.19 5/3/2017 250099 WATER STREET LAND LLC 51.43 5/3/2017 250100 WATER STREET LAND LLC 54.67 5/3/2017 250101 WATER STREET LAND LLC 54.75 5/4/2017 250102 ONLINE RESOURCES CORPORATION 100.00 5/4/2017 250103 ADP SCREENING 61.33 5/4/2017 250104 AFFORDABLE AUTO SERVICE, RAHIB ELAWAR 59.95 5/4/2017 250105 ALTERNATIVE HOSE INC 447.17 5/4/2017 250106 ASBCSD 62.00 5/4/2017 250107 BILL & WAGS INC. 177.18 5/4/2017 250108 BRAVO SIGNS & DESIGN, INC 8,616.81 5/4/2017 250109 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 272.12 5/4/2017 250110 CERTIFIED LABORATORIES, NCH CORP. 947.67 5/4/2017 250111 CHEM-TECH INTERNATIONAL INC 2,996.66 5/4/2017 250112 COLONIAL LIFE, PREMIUM 848.38 5/4/2017 250113 DAVE SMITH 65.19 5/4/2017 250114 DIRECTV 249.22 5/4/2017 250115 DONEGAN TREE SERVICE 300.00 5/4/2017 250116 EWING IRRIGATION PRODUCTS INC 134.95 5/4/2017 250117 EXPERIAN 202.48 5/4/2017 250118 EYE MED VISION CARE 1,181.84 5/4/2017 250119 FMB TRUCK OUTFITTERS, INC 226.22 5/4/2017 250120 GARY YOUNG 547.98 5/4/2017 250121 HACH COMPANY 1,598.16 5/4/2017 250122 HENRY SOWLE 547.98 5/4/2017 250123 HIGHLAND EQUIPMENT RENTAL 64.27 5/4/2017 250124 IDEA HALL 26,650.00 5/4/2017 250125 K & L HARDWARE 25.83 5/4/2017 250126 KEPWARE, INC 438.00 5/4/2017 250127 LIEBERT CASSIDY WHITMORE LCW 70.00 5/4/2017 250128 MICHAEL REARDON 464.78 5/4/2017 250129 NATIONAL BUSINESS FURNITURE, LLC 9,330.57 5/4/2017 250130 POMONA VALLEY WORKSHOP 1,207.50 PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 Page 1 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/4/2017 250131 RAYMOND ROYBAL 90.00 5/4/2017 250132 SAN BERNARDINO VALLEY MUNICIPAL WATER DEPARTMENT 201,280.00 5/4/2017 250133 SCN, SECURITY COMMUNICATION NETWORK, INC 285.00 5/4/2017 250134 SO CAL GAS 328.10 5/4/2017 250135 SOUTH COAST A.Q.M.D. 250.94 5/4/2017 250136 WEST COAST SAFETY SUPPLY CO 37,956.17 5/9/2017 250137 MICHEL MARABLE 137.25 5/9/2017 250138 SIAFA NEAL 102.70 5/9/2017 250139 HENRY MINKLER 92.07 5/9/2017 250140 JOHN FARMER 62.47 5/9/2017 250141 AIDA JOHNSON 93.19 5/9/2017 250142 DEBRA DANIELS 47.17 5/9/2017 250143 2014 - 1 IH BORROWER L.P. 80.45 5/9/2017 250144 FATA CONSTRUCTION 871.39 5/9/2017 250145 AHDLP 1,579.85 5/9/2017 250146 PRIMUS CONTRACTING GROUP, INC. 1,645.40 5/9/2017 250147 HILLCREST CONTRACTING INC 1,629.20 5/9/2017 250148 JOSHUA GRADING & EXCAVATING 1,734.15 5/9/2017 250149 ALBERT THOMAS JR 63.14 5/9/2017 250150 CHAD EASTER 150.00 5/9/2017 250151 CLAIRE REMAI 33.08 5/9/2017 250152 IRMA NICHOLS 150.00 5/9/2017 250153 JOHN KORZONEK 100.00 5/9/2017 250154 LAUREN MATHENY 196.47 5/9/2017 250155 MADONNA MORGAN 66.03 5/9/2017 250156 MAXIM A SATTAROV 200.00 5/9/2017 250157 MICHAEL ARVIZO 119.00 5/9/2017 250158 MICHELLE SHIELDS MARES 200.00 5/9/2017 250159 ROBERT STUTZMAN 150.00 5/9/2017 250160 ROZALIA TRAMMELL 150.00 5/9/2017 250161 STEVEN LOPEZ 150.00 5/10/2017 250162 AMAZON.COM, LLC 5,677.36 5/10/2017 250163 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 705.91 5/10/2017 250164 CITY OF HIGHLAND 6,210.00 5/10/2017 250165 CITY OF SAN BERNARDINO, PUBLIC WORKS DEPT 3,926.86 5/10/2017 250166 COLONIAL LIFE, PREMIUM 52.26 5/10/2017 250167 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 675.00 5/10/2017 250168 CULLIGAN OF ONTARIO 50.00 5/10/2017 250169 DIB'S SAFE & LOCK SERVICE 534.56 5/10/2017 250170 EDITH E. ALFARO 130.00 5/10/2017 250171 FRONTIER COMMUNICATIONS 779.91 5/10/2017 250172 GOVERNMENT FINANCE OFFICERS ASSOCIATION 150.00 5/10/2017 250173 HATFIELD BUICK 723.73 5/10/2017 250174 HIGHLAND COMMUNITY NEWS 29.95 5/10/2017 250175 HIGHLAND EQUIPMENT RENTAL 9.99 5/10/2017 250176 HUB CONSTRUCTION SPECIALTIES 198.05 5/10/2017 250177 IDEA HALL 20,416.23 5/10/2017 250178 K & L HARDWARE 15.07 5/10/2017 250179 LIEBERT CASSIDY WHITMORE LCW 35.00 5/10/2017 250180 MC CROMETER INC 1,988.46 5/10/2017 250181 MWH AMERICAS, INC. 20,665.75 5/10/2017 250182 NATIONAL CONSTRUCTION RENTALS 158.49 5/10/2017 250183 PETTY CASH 238.67 5/10/2017 250184 PETTY CASH 111.00 PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 Page 2 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/10/2017 250185 PLUMBERS DEPOT INC. 678.00 5/10/2017 250186 POMONA VALLEY WORKSHOP 805.00 5/10/2017 250187 RMC WATER AND ENVIRONMENT 4,108.75 5/10/2017 250188 SCN, SECURITY COMMUNICATION NETWORK, INC 187.00 5/10/2017 250189 SITEONE LANDSCAPE SUPPLY , LLC 780.47 5/10/2017 250190 SOUTH COAST A Q M D 485.43 5/10/2017 250191 SOUTHERN CALIF OCCUPATIONAL HEALTH SERVICES 155.00 5/10/2017 250192 STAPLES BUSINESS ADVANTAGE 1,643.39 5/10/2017 250193 STATE WATER RESOURCES CONTROL BOARD 90.00 5/10/2017 250194 VALERO MARKETING & SUPPLY COMP 8,478.42 5/17/2017 250195 MARIA DE LOURDES PEREZ 105.75 5/17/2017 250196 1414 CITRUS LLC 1,328.51 5/17/2017 250197 2995 MOUNTAIN LLC 268.60 5/17/2017 250198 1414 CITRUS LLC 453.69 5/17/2017 250199 2991 MOUNTAIN LLC 2,114.90 5/17/2017 250200 RAMIOR TORRES 3.57 5/17/2017 250201 HABITAT RESTORATION LLC 64.75 5/17/2017 250202 BRECKENRIDGE PROPERTY FUND 2015 LLC 64.96 5/17/2017 250203 RYKIR ENTERPRISES, LLC 118.12 5/17/2017 250204 CARLTON SPRINGER 74.15 5/17/2017 250205 SHERI MCMACKIN 111.66 5/18/2017 250206 AFFORDABLE AUTO SERVICE, RAHIB ELAWAR 58.00 5/18/2017 250207 ALLEN WILLIAMS 247.83 5/18/2017 250208 AT&T 49.55 5/18/2017 250209 CHEM-TECH INTERNATIONAL INC 3,254.90 5/18/2017 250210 COMPUTERIZED EMBROIDERY COMPANY, INC 1,491.80 5/18/2017 250211 CSR AIR CONDITIONING & HEATING 3,278.46 5/18/2017 250212 DIB'S SAFE & LOCK SERVICE 17.00 5/18/2017 250213 ED KING 247.83 5/18/2017 250214 FEDERAL EXPRESS CORPORATION 64.20 5/18/2017 250215 FRONTIER COMMUNICATIONS 187.92 5/18/2017 250216 HIGHLAND COMMUNITY NEWS 2,141.26 5/18/2017 250217 I.C.W.A. 914.00 5/18/2017 250218 IDEA HALL 29,953.64 5/18/2017 250219 IMG/INLAND MEDIA GROUP, STEVE SWITZER 160.00 5/18/2017 250220 INLAND DESERT SECURITY & COMMUNICATIONS, INC 540.50 5/18/2017 250221 K & L HARDWARE 16.35 5/18/2017 250222 KONICA MINOLTA 1,019.07 5/18/2017 250223 NEOFUNDS BY NEOPOST 500.00 5/18/2017 250224 PARRON HALL CORPORATION 2,964.55 5/18/2017 250225 POMONA VALLEY WORKSHOP 799.25 5/18/2017 250226 RMC WATER AND ENVIRONMENT 72,906.56 5/18/2017 250227 RONALD C. BRAATZ, LIFTOFF, LLC 974.00 5/18/2017 250228 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 643,045.74 5/18/2017 250229 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 15,654.97 5/18/2017 250230 SOUTHERN CALIFORNIA EDISON COMPANY 128,520.15 5/18/2017 250231 SOUTHERN CALIFORNIA GAS COMPANY 27.00 5/18/2017 250232 U.S. BANCORP SERVICE CENTER 23,988.33 5/25/2017 250237 BOB DOSHI 301.50 5/25/2017 250238 EMMANUEL NWOKE 150.00 5/25/2017 250239 YUN MA 122.65 5/25/2017 250240 LINDA AUZENNE 69.04 5/25/2017 250241 EQUATER GROUP INC 33.88 5/25/2017 250242 EQUATER GROUP INC 29.00 PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 Page 3 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/25/2017 250243 EQUATER GROUP INC 29.00 5/25/2017 250244 MALCOLM SCATLIFFE 75.65 5/25/2017 250245 LESLIE HERNANDEZ 21.32 5/25/2017 250246 WARREN ROBERSON JR 150.00 5/25/2017 250247 JOSE & IRENE VICUNA 77.08 5/25/2017 250248 KIMBERLY BEAUCAGE & RUSSELL BERGEVINE 56.35 5/25/2017 250249 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 201.16 5/25/2017 250250 BURGESS MOVING & STORAGE 893.43 5/25/2017 250251 CALIFORNIA HYDROSTATICS 1,734.88 5/25/2017 250252 CHEM-TECH INTERNATIONAL INC 1,907.21 5/25/2017 250253 COMPUTERIZED EMBROIDERY COMPANY, INC 2,055.76 5/25/2017 250254 COUNTY OF SAN BERNARDINO, PUBLIC HEALTH 138.00 5/25/2017 250255 DALE BARLOW 193.93 5/25/2017 250256 DUNNRITE PAINTING INC 2,980.00 5/25/2017 250257 FIRST CHOICE SERVICES 558.34 5/25/2017 250258 FRONTIER COMMUNICATIONS 421.74 5/25/2017 250259 HATFIELD BUICK 95.19 5/25/2017 250260 INLAND WATER WORKS SUPPLY CO 1,062.25 5/25/2017 250261 MATT ARMITAGE 53.82 5/25/2017 250262 METROPOLITAN LIFE INS CO 161.30 5/25/2017 250263 NATIONAL AUTO FLEET GROUP, CHEVROLET OF WATSONVILLE 27,919.52 5/25/2017 250264 PHOENIX LIFE INSURANCE COMPANY 66.74 5/25/2017 250265 POMONA VALLEY WORKSHOP 1,207.50 5/25/2017 250266 RAYMOND ROYBAL 250.00 5/25/2017 250267 SCN, SECURITY COMMUNICATION NETWORK, INC 494.50 5/25/2017 250268 SO CAL GAS 14.79 5/25/2017 250269 SOUTH COAST A Q M D 376.41 5/25/2017 250270 STAPLES BUSINESS ADVANTAGE 688.41 5/25/2017 250272 TYLER TECHNOLGIES 125.00 5/25/2017 250273 UNITED PARCEL SERVICE, INC. 11.59 5/31/2017 250288 DAMACIO LEZAMA 118.00 5/31/2017 250289 EVELYN GALLARDO 200.00 5/31/2017 250290 IRINA KANEVA-VASTA 199.00 5/31/2017 250291 JAMES KNUDSEN 196.00 5/31/2017 250292 JOHN MONTGOMERY 148.83 5/31/2017 250293 JOSEPH HUI 150.00 5/31/2017 250294 NORMA BEACHTEL 57.00 5/31/2017 250295 PAMELA BIBLE 60.00 5/31/2017 250296 PAUL DZIAK 200.00 5/31/2017 250297 TODD MEKELBURG 430.00 BANK DRAFTS 5/2/2017 DFT0002055 PayNearMe, Inc. 115.42 5/3/2017 DFT0002042 CALPERS/ DEFERRED COMPENSATION 15,246.90 5/3/2017 DFT0002043 CALPERS/ MEDICAL 81,449.12 5/3/2017 DFT0002044 CALPERS/ RETIREMENT 61.38 5/3/2017 DFT0002045 CALPERS/ RETIREMENT 2,934.71 5/3/2017 DFT0002046 CALPERS/ RETIREMENT 18,846.11 5/3/2017 DFT0002047 CALPERS/ RETIREMENT 3,001.07 5/3/2017 DFT0002048 CALPERS/ RETIREMENT 230.02 5/3/2017 DFT0002049 CALPERS/ RETIREMENT 12,461.51 5/3/2017 DFT0002050 CALPERS/ RETIREMENT 153.05 5/3/2017 DFT0002051 CALPERS/ RETIREMENT 824.38 PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 Page 4 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/3/2017 DFT0002059 STATE DISBURSEMENT UNIT 3,248.97 5/3/2017 DFT0002061 MERCHANT BANKCD 216.47 5/5/2017 DFT0002041 CA SDI Tax 1,953.54 5/5/2017 DFT0002052 Federal Payroll Tax 27,437.85 5/5/2017 DFT0002053 Medicare 6,459.66 5/5/2017 DFT0002056 Social Security 45.38 5/5/2017 DFT0002058 State Payroll Tax 9,234.67 5/9/2017 DFT0002060 PayNearMe, Inc. 179.10 5/10/2017 DFT0002068 TRANSFIRST DISCOUNT 10,710.06 5/10/2017 DFT0002071 FORTE, ACH DIRECT INC, ACH FEES 5,030.46 5/16/2017 DFT0002063 PayNearMe, Inc. 139.30 5/16/2017 DFT0002064 PayNearMe, Inc. 47.76 5/18/2017 DFT0002066 STATE DISBURSEMENT UNIT 3,248.97 5/18/2017 DFT0002073 CALPERS, UAL PAYMENT 36,902.01 5/18/2017 DFT0002074 CALPERS/ DEFERRED COMPENSATION 15,419.60 5/18/2017 DFT0002075 CALPERS/ RETIREMENT 824.38 5/18/2017 DFT0002077 CALPERS/ RETIREMENT 2,934.71 5/18/2017 DFT0002078 CALPERS/ RETIREMENT 12,364.00 5/18/2017 DFT0002079 CALPERS/ RETIREMENT 61.38 5/18/2017 DFT0002080 CALPERS/ RETIREMENT 230.02 5/18/2017 DFT0002081 CALPERS/ RETIREMENT 3,001.07 5/18/2017 DFT0002082 CALPERS/ RETIREMENT 153.05 5/19/2017 DFT0002065 State Payroll Tax 8,653.04 5/19/2017 DFT0002067 Social Security 34.96 5/19/2017 DFT0002069 Medicare 6,200.76 5/19/2017 DFT0002070 Federal Payroll Tax 26,785.60 5/19/2017 DFT0002072 CA SDI Tax 1,873.21 5/19/2017 DFT0002076 CALPERS/ RETIREMENT 18,707.79 5/19/2017 DFT0002083 CBB 2,819.67 5/19/2017 DFT0002085 VERIFONE INC 22.00 5/23/2017 DFT0002084 PayNearMe, Inc. 167.16 5/25/2017 DFT0002095 MERCHANT BANKCD 90.00 5/30/2017 DFT0002091 PayNearMe, Inc. 145.27 5/31/2017 DFT0002094 STATE DISBURSEMENT UNIT 3,248.97 5/31/2017 DFT0002096 CALPERS/ DEFERRED COMPENSATION 15,372.64 5/31/2017 DFT0002097 CALPERS/ RETIREMENT 230.02 5/31/2017 DFT0002098 CALPERS/ RETIREMENT 61.38 5/31/2017 DFT0002099 CALPERS/ RETIREMENT 153.05 5/31/2017 DFT0002100 CALPERS/ RETIREMENT 12,466.91 5/31/2017 DFT0002101 CALPERS/ RETIREMENT 3,001.07 5/31/2017 DFT0002102 CALPERS/ RETIREMENT 18,853.77 5/31/2017 DFT0002103 CALPERS/ RETIREMENT 2,934.71 5/31/2017 DFT0002104 CALPERS/ RETIREMENT 824.38 5/31/2017 DFT0002105 PayNearMe, Inc. 37.81 5/31/2017 DFT0002106 VERIFONE INC 44.00 ACH PAYMENTS 5/4/2017 10002657 ADP, LLC 296.95 5/4/2017 10002658 ADS ENVIRONMENTAL SERVICES 1,600.00 5/4/2017 10002659 CLEARFLY COMMUNATIONS 1,333.69 5/4/2017 10002660 DAVID HERNANDEZ 360.79 5/4/2017 10002661 ENVIRONMENTAL SCIENCE ASSOCIATES/ESA 12,017.36 5/4/2017 10002662 EUROFINS EATON ANALYTICAL, INC 500.00 5/4/2017 10002663 EVWD EMPLOYEES EVENTS ASSOC 337.50 PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 Page 5 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/4/2017 10002664 EXCEL LANDSCAPE, ICN 12,200.00 5/4/2017 10002665 FERGUSON ENTERPRISES, INC. 502,892.57 5/4/2017 10002666 FILARSKY & WATT LLP 1,190.00 5/4/2017 10002667 FSA Only/East Valley Water District 1,891.72 5/4/2017 10002668 G & K SERVICES, CO. 1,179.60 5/4/2017 10002670 GARY STURDIVAN 564.90 5/4/2017 10002671 GORDON GRANT 484.34 5/4/2017 10002672 GSSI, GENERAL SECURITY SERVICES, INC. 1,295.00 5/4/2017 10002673 HIGHLAND AREA CHAMBER 40.00 5/4/2017 10002674 JANA FOX 504.55 5/4/2017 10002675 JC LAW FIRM 23,150.00 5/4/2017 10002676 JEREMY SUBRIAR 332.00 5/4/2017 10002677 JOHN ROBERT HARGRAVES 500.00 5/4/2017 10002678 LINCOLN NATIONAL LIFE INS CO. 2,002.18 5/4/2017 10002679 MANAGED HEALTH NETWORK 235.20 5/4/2017 10002680 MICHAEL HENDERSON 549.78 5/4/2017 10002681 MIKE J. ROQUET CONSTRUCTION INC 11,573.10 5/4/2017 10002682 MILLER SPATIAL SERVICES, LLC 9,657.50 5/4/2017 10002683 MINUTEMAN PRESS OF RANCHO CUCAMONGA 3,114.51 5/4/2017 10002684 PARKHOUSE TIRE, INC 2,395.11 5/4/2017 10002685 PLUS 1 PERFORMANCE 988.28 5/4/2017 10002686 PSA PRINTING & MAILING SERVICES, INC 593.31 5/4/2017 10002687 REBECCA KASTEN 650.00 5/4/2017 10002688 SAFETY COMPLIANCE COMPANY 200.00 5/4/2017 10002689 SMART ENERGY SYSTEMS LLC 7,590.00 5/4/2017 10002690 SPECIAL DISTRICT RISK MGMT 500.00 5/4/2017 10002691 STEVEN FARRINGTON 650.00 5/4/2017 10002692 THOMAS P ORTON 402.83 5/4/2017 10002693 TIM VITRANO 155.00 5/4/2017 10002694 UNDERGROUND SERVICE ALERT 175.50 5/4/2017 10002695 VULCAN MATERIALS COMPANY 602.50 5/10/2017 10002696 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 1,014.63 5/10/2017 10002697 BELSON OUTDOORS, LLC, PLAYCARE WISCONSIN, INC. 2,287.58 5/10/2017 10002698 BOOT BARN, INC 561.57 5/10/2017 10002699 CINTAS CORPORATION 104.69 5/10/2017 10002700 CLINICAL LAB OF S B 10,017.25 5/10/2017 10002701 CORELOGIC SOLUTIONS INC. 315.00 5/10/2017 10002702 FERGUSON ENTERPRISES, INC. 47,043.52 5/10/2017 10002703 FILARSKY & WATT LLP 840.00 5/10/2017 10002704 G & K SERVICES, CO. 59.99 5/10/2017 10002705 GSSI, GENERAL SECURITY SERVICES, INC. 1,239.50 5/10/2017 10002706 HIGHLAND AREA CHAMBER 300.00 5/10/2017 10002707 JC LAW FIRM 7,330.00 5/10/2017 10002708 JOHN WITHERS ASSOCIATES 6,000.00 5/10/2017 10002709 LANDS END INC 149.37 5/10/2017 10002710 LEGEND PUMP AND WELL 858.00 5/10/2017 10002711 LESLIE'S POOL SUPPLIES, INC. 33.83 5/10/2017 10002712 MANAGED HEALTH NETWORK 238.56 5/10/2017 10002713 MIKE J. ROQUET CONSTRUCTION INC 2,911.20 5/10/2017 10002714 MINUTEMAN PRESS OF RANCHO CUCAMONGA 9,047.50 5/10/2017 10002715 NETWORK FLEET, INC 124.75 5/10/2017 10002716 NO RUSH CHARGE LLC 1,662.76 5/10/2017 10002717 P.A.D. PALM AUTO DETAIL 870.00 5/10/2017 10002718 PLUS 1 PERFORMANCE 199.60 PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 Page 6 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/10/2017 10002719 POWERSTRIDE BATTERY CO. 175.33 5/10/2017 10002720 PRIDE PLUMBING SERVICES 1,256.88 5/10/2017 10002721 ROW TRAFFIC SAFETY, INC 25.06 5/10/2017 10002722 S & J PLUMBING, INC. 4,750.00 5/10/2017 10002723 SHRED-IT US JV LLC 113.24 5/10/2017 10002724 TIM VITRANO 79.99 5/10/2017 10002725 TPX COMMUNICATIONS 5,663.03 5/10/2017 10002726 VERIZON WIRELESS 4,893.05 5/10/2017 10002728 VULCAN MATERIALS COMPANY 1,663.59 5/10/2017 10002729 WAXIE SANITARY SUPPLY 1,413.71 5/18/2017 10002730 ANTHONY'S IRRIGATION 11,130.00 5/18/2017 10002731 CLIFF'S PEST CONTROL 533.00 5/18/2017 10002732 DANGELO CO INC 30.11 5/18/2017 10002733 EVWD EMPLOYEES EVENTS ASSOC 337.50 5/18/2017 10002734 FSA Only/East Valley Water District 1,891.72 5/18/2017 10002735 G & K SERVICES, CO. 1,439.23 5/18/2017 10002737 GONZALEZ, QUINTANA & HUNTER, LLC 4,000.00 5/18/2017 10002738 GSSI, GENERAL SECURITY SERVICES, INC. 1,295.00 5/18/2017 10002739 JOHNSON MACHINERY CO 182.47 5/18/2017 10002740 MILLER SPATIAL SERVICES, LLC 5,055.00 5/18/2017 10002741 MINUTEMAN PRESS OF RANCHO CUCAMONGA 393.70 5/18/2017 10002742 MUSICK, PEELER & GARRETT LLP 111,349.35 5/18/2017 10002743 POWERSTRIDE BATTERY CO. 350.66 5/18/2017 10002744 S & J PLUMBING, INC. 650.00 5/18/2017 10002745 XC2 SOFTWARE, LLC 1,840.00 5/25/2017 10002746 AIRGAS, USA LLC 330.00 5/25/2017 10002747 ASHOK K. DHINGRA, AKD CONSULTING 24,647.09 5/25/2017 10002748 CINTAS CORPORATION 146.11 5/25/2017 10002749 DANGELO CO INC 21,993.62 5/25/2017 10002750 EVWD EMPLOYEES EVENTS ASSOC 1,259.19 5/25/2017 10002751 EXCEL LANDSCAPE, ICN 5,453.05 5/25/2017 10002752 FERGUSON ENTERPRISES, INC. 139,218.58 5/25/2017 10002753 G & K SERVICES, CO. 707.26 5/25/2017 10002755 GSSI, GENERAL SECURITY SERVICES, INC. 1,295.00 5/25/2017 10002756 INFOSEND, INC 29,678.10 5/25/2017 10002757 JOSE MILLAN 2,120.00 5/25/2017 10002758 MILLER SPATIAL SERVICES, LLC 10,760.00 5/25/2017 10002759 OFFICIAL PAYMENTS CORP. 37.15 5/25/2017 10002760 PACIFIC COAST TOOL & SUPPLY 57.17 5/25/2017 10002761 PRINCIPAL FINANCIAL GROUP 8,433.24 5/25/2017 10002762 SCHUBERT ENTERPRISES INC 110.00 5/25/2017 10002763 VULCAN MATERIALS COMPANY 2,739.88 5/25/2017 10002764 WATERTRAX USA INC 14,901.18 TOTAL 2,897,747.29$ PAYMENT REGISTER MAY 1, 2017 - MAY 31, 2017 Page 7 of 7 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 Agend a Item #5.c. Meeting Date: June 28, 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 May 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 , May 31, 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 May 31, 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 M ay 2 017 Financial Statement Monthly Backup Material M ay 2 017 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2017   page | 1 The following is a highlight summary of the District’s financial results as of May 31, 2017. Statement of Net Position Total assets at May 31, 2017 are $184.8 million. CLASSIFICATION WATER WASTEWATER DISTRICT TOTAL Cash and Investments $ 15,338,740 $ 3,534,204 $ 18,872,944 Utility Plant, Net 109,399,769 20,210,860 129,610,629 Other Assets 23,129,489 13,183,658 36,313,146 Current Liabilities 5,125,126 381,943 5,507,069 Long Term Liabilities 50,428,938 6,905,585 57,334,523 Beginning Net Position 83,502,222 28,002,862 111,505,084 Change in Equity 8,811,710 1,638,333 10,450,043 Total Net Position $ 92,313,933 $ 29,641,195 $ 121,955,127 Below is a summary of the District’s net position as of May 31, 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 MAY 31, 2017   page | 2 Cash and Investments are $18.8 million for the month of May, an increase of $0.1 million from the prior month. $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 May 31, 2017 of 3.26 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 May 31, 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 $ 22,907,891 $ 11,808,182 $ 34,716,072 Expense 14,096,181 10,169,849 24,266,030 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2017   page | 3 Water Sales for the month ending May 31, 2017 were $1,204,503, $109,503 or 10% over staff’s amended projections for the month. The billing periods during the month of May experienced an average temperature of 71 degrees, additionally the average Evapotranspiration Rates (ETo) for the period was 6.24 inches which was 0.68 inches more, compared to this time last year. Water sales year-to-date are over the amended projections by $156,704. $- $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 MAY 31, 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 MAY 31, 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 462,000 (50%). Tier 2 experienced the largest increase, $250,000 or 80% increase compared to last year. Customers used 92 million gallons (123K HCF) more during the Month of May 2017 comparatively. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 5/31/2016 5/31/2017 Comparative Monthly Water Revenue (Water Sales & Meter Charge) Meter Tier 1 Tier 2 Tier 3 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 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 MAY 31, 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 $731K compared to last year due to the new Wastewater Treatment rate increases imposed by the City of San Bernardino effective July 1, 2016. WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 7,023,802.14$ 959,709.22$ 7,983,511.36$ 02 Investments 3,516,270.52 1,872,105.98 5,388,376.50 03 Accounts Receivable, Net 3,390,610.81 246,815.66 3,637,426.47 04 ‐Interest Receivable 5,951.06 3,377.19 9,328.25 14*05 Other Receivables 385,977.64 - 385,977.64 06 Due from other Governments 16,144.57 - 16,144.57 08 Inventory 347,229.05 6,721.16 353,950.21 09 Prepaid Expenses 126,323.90 34,085.07 160,408.97 14,812,309.69 3,122,814.28 17,935,123.97 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 4,798,667.16 702,389.20 5,501,056.36 11 Capital Assets not being Depreciated 17,725,837.70 12,617,658.08 30,343,495.78 13 Capital Assets, Net 109,399,768.58 20,210,860.38 129,610,628.96 131,924,273.44 33,530,907.66 165,455,181.10 Total Assets:146,736,583.13 36,653,721.94 183,390,305.07 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 1,249,997.00 147,867,997.27 36,928,722.29 184,796,719.56 Current Liabilities: 22 Accounts Payable and Accrued Expenses 665,806.20 29,959.97 695,766.17 23 Accrued Payroll and Benefits 319,059.69 85,834.82 404,894.51 15 Customer Service Deposits 1,670,566.47 - 1,670,566.47 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 5,125,126.43 381,942.73 5,507,069.16 Non-Current Liabilities: 20 Compensated Absences, less current portion 123,786.40 24,912.78 148,699.18 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 7,261.71 197,120.00 204,381.71 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 658,380.29 185,697.71 844,078.00 50,428,938.33 6,905,584.99 57,334,523.32 55,554,064.76 7,287,527.72 62,841,592.48 31 Equity 83,502,222.37 28,002,861.73 111,505,084.10 83,502,222.37 28,002,861.73 111,505,084.10 Tot Total Revenue 22,907,890.83 11,808,181.65 34,716,072.48 Tot Total Expense 14,096,180.69 10,169,848.81 24,266,029.50 8,811,710.14 1,638,332.84 10,450,042.98 92,313,932.51 29,641,194.57 121,955,127.08 147,867,997.27$ 36,928,722.29$ 184,796,719.56$ 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: Unaudited As of May 31, 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: Page 1 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,204,503.46$ 12,793,703.79$ 13,800,000.00$ -$ -$ -$ 13,800,000.00$ 1,006,296.21$ 42 Meter Charges 742,291.04 8,149,045.57 8,910,000.00 - - - 8,910,000.00 760,954.43 43 Penalties 54,949.66 530,358.29 515,000.00 4,038.08 37,191.70 170,000.00 685,000.00 117,450.01 44 Wastewater System Charges - - - 378,644.55 4,285,341.96 4,460,000.00 4,460,000.00 174,658.04 45 Wastewater Treatment Charges - - - 670,312.90 7,384,387.34 7,610,000.00 7,610,000.00 225,612.66 46 Other Operating Revenue 47,634.63 661,721.84 470,000.00 - 60,013.96 70,000.00 540,000.00 (181,735.80) 47 Non Operating Revenue 5,675.20 743,303.71 120,000.00 - 23,486.07 22,000.00 142,000.00 (624,789.78) 48 Gain or Loss on Disposition - 29,757.63 - - 17,760.62 - - (47,518.25) 56 Benefits 29.51 1,230.40 - 12.64 101.99 - - (1,332.39) 68 Depreciation - - - - - - - Revenue Total: 2,055,053.99 22,907,890.83 23,815,000.00 1,052,995.53 11,808,181.65 12,332,000.00 36,147,000.00 1,430,927.52 - - - - - Expense by Category 51 Labor 316,630.87 3,986,265.55 4,596,900.00 95,490.98 1,084,179.92 1,337,100.00 5,934,000.00 863,554.53 56 Benefits 140,352.94 1,775,679.52 1,945,400.00 39,596.84 419,215.08 491,600.00 2,437,000.00 242,105.40 63 Contract Services 191,379.89 2,299,300.02 3,280,400.00 720,842.70 8,043,784.40 8,505,450.00 11,785,850.00 1,442,765.58 65 Professional Development 13,541.74 167,313.48 266,900.00 3,744.22 59,480.63 102,100.00 369,000.00 142,205.89 53 Overtime 19,886.30 272,651.51 258,700.00 4,546.61 15,581.50 17,300.00 276,000.00 (12,233.01) 62 Materials and Supplies 71,887.11 897,747.02 1,463,900.00 2,640.80 110,451.14 154,400.00 1,618,300.00 610,101.84 64 Utilities 165,383.41 1,697,661.64 2,364,550.00 9,709.59 109,072.29 175,300.00 2,539,850.00 733,116.07 52 Temporary Labor 453.60 39,964.14 20,300.00 194.40 15,291.48 8,700.00 29,000.00 (26,255.62) 67 Other 8,314.29 208,333.83 208,900.00 3,563.24 88,737.46 89,100.00 298,000.00 928.71 54 Standby 2,376.00 31,416.75 33,000.00 264.00 2,429.91 2,000.00 35,000.00 1,153.34 61 Water Supply 201,280.00 1,066,525.37 937,000.00 - - - 937,000.00 (129,525.37) 71 -Debt Service - 1,653,321.86 4,007,000.00 - 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: 1,131,486.15 14,096,180.69 21,334,469.00 880,593.38 10,169,848.81 14,031,367.00 35,365,836.00 11,099,806.50 Total Surplus (Deficit): 923,567.84$ 8,811,710.14$ -$ 172,402.15$ 1,638,332.84$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended May 31, 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 1,204,503.46$ 12,793,703.79$ 13,800,000.00$ -$ -$ -$ 13,800,000.00$ 1,006,296.21$ 42 Meter Charges 742,291.04 8,149,045.57 8,910,000.00 - - - 8,910,000.00 760,954.43 43 Penalties 54,949.66 530,358.29 515,000.00 4,038.08 37,191.70 170,000.00 685,000.00 117,450.01 44 Wastewater System Charges - - - 378,644.55 4,285,341.96 4,460,000.00 4,460,000.00 174,658.04 45 Wastewater Treatment Charges - - - 670,312.90 7,384,387.34 7,610,000.00 7,610,000.00 225,612.66 46 Other Operating Revenue 47,634.63 661,721.84 470,000.00 - 60,013.96 70,000.00 540,000.00 (181,735.80) 47 Non Operating Revenue 5,675.20 743,303.71 120,000.00 - 23,486.07 22,000.00 142,000.00 (624,789.78) Revenue Total: 2,055,053.99 22,907,890.83 23,815,000.00 1,052,995.53 11,808,181.65 12,332,000.00 36,147,000.00 1,430,927.52 Progra 1000 - Board of Directors 10,918.22 99,944.78 148,400.00 4,632.94 40,678.26 63,600.00 212,000.00 71,376.96 Progra 2000 - General Administration 72,640.27 814,979.15 930,900.00 29,477.00 331,750.25 364,700.00 1,295,600.00 148,870.60 Progra 2100 - Human Resources 31,019.57 466,025.31 528,800.00 13,263.82 197,618.75 224,500.00 753,300.00 89,655.94 Progra 2200 - Public Affairs 21,943.66 264,092.04 355,570.00 19,445.67 248,571.05 329,900.00 685,470.00 172,806.91 Progra 2300 - Conservation 44,102.66 552,450.58 1,124,150.00 - - - 1,124,150.00 571,699.42 Progra 3000 - Finance 45,196.46 709,003.01 788,000.00 19,369.20 304,884.36 388,550.00 1,176,550.00 162,662.63 Progra 3200 - Information Technology 41,427.85 419,434.57 540,100.00 17,754.76 186,328.39 232,200.00 772,300.00 166,537.04 Progra 3300 - Customer Service 81,363.05 1,011,261.39 1,297,380.00 29,440.96 327,524.95 401,800.00 1,699,180.00 360,393.66 Progra 3400 - Meter Service 24,583.68 291,410.16 348,000.00 149.90 7,429.97 - 348,000.00 49,159.87 Progra 4000 - Engineering 42,309.52 678,365.93 892,650.00 22,795.21 282,189.26 371,250.00 1,263,900.00 303,344.81 Progra 5000 - Water Production 411,830.64 3,557,482.67 4,139,850.00 - - - 4,139,850.00 582,367.33 Progra 5100 - Water Treatment 30,779.76 572,007.20 827,000.00 - - - 827,000.00 254,992.80 Progra 5200 - Water Quality 29,828.17 333,995.41 407,000.00 - - - 407,000.00 73,004.59 Progra 6000 - Field Maintenance Administration 14,240.35 153,265.61 194,400.00 3,979.99 31,357.14 21,600.00 216,000.00 31,377.25 Progra 6100 - Water Maintenance 142,687.53 1,584,302.66 1,759,000.00 - (21.00) - 1,759,000.00 174,718.34 Progra 6200 - Wastewater Maintenance - - - 702,232.94 7,806,579.42 8,231,850.00 8,231,850.00 425,270.58 Progra 7000 - Facilities Maintenance 53,870.40 552,403.51 604,250.00 10,981.33 120,176.61 198,600.00 802,850.00 130,269.88 Progra 7100 - Fleet Maintenance 32,744.36 382,434.85 490,500.00 7,069.66 63,156.40 54,500.00 545,000.00 99,408.75 Progra 8000 - Capital - 1,653,321.86 5,958,519.00 - 221,625.00 3,148,317.00 9,106,836.00 7,231,889.14 Total Surplus (Deficit):923,567.84$ 8,811,710.14$ -$ 172,402.15$ 1,638,332.84$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended May 31, 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 1,204,503.46$ 12,793,703.79$ 13,800,000.00$ -$ -$ -$ 13,800,000.00$ 1,006,296.21$ 42 Meter Charges 742,291.04 8,149,045.57 8,910,000.00 - - - 8,910,000.00 760,954.43 43 Penalties 54,949.66 530,358.29 515,000.00 4,038.08 37,191.70 170,000.00 685,000.00 117,450.01 44 Wastewater System Charges - - - 378,644.55 4,285,341.96 4,460,000.00 4,460,000.00 174,658.04 45 Wastewater Treatment Charges - - - 670,312.90 7,384,387.34 7,610,000.00 7,610,000.00 225,612.66 46 Other Operating Revenue 47,634.63 661,721.84 470,000.00 - 60,013.96 70,000.00 540,000.00 (181,735.80) 47 Non Operating Revenue 5,675.20 743,303.71 120,000.00 - 23,486.07 22,000.00 142,000.00 (624,789.78) 48 Gain or Loss on Disposition - 29,757.63 - - 17,760.62 - - (47,518.25) 56 Benefits 29.51 1,230.40 - 12.64 101.99 - - (1,332.39) 68 Depreciation - - - - - - - Revenue Total: 2,055,053.99 22,907,890.83 23,815,000.00 1,052,995.53 11,808,181.65 12,332,000.00 36,147,000.00 1,430,927.52 Program: 1000 - Board of Directors - - - 51 Labor 4,900.00$ 58,899.87$ 73,500.00$ 2,100.00$ 25,242.85$ 31,500.00$ 105,000.00$ 20,857.28$ 56 Benefits 1,669.52 16,214.24 28,700.00 715.53 6,308.89 12,300.00 41,000.00 18,476.87 63 Contract Services 2,981.69 11,038.69 7,700.00 1,277.87 4,730.87 3,300.00 11,000.00 (4,769.56) 65 Professional Development 1,367.01 13,791.98 38,500.00 539.54 4,395.65 16,500.00 55,000.00 36,812.37 Program: 1000 - Board of Directors Total: 10,918.22 99,944.78 148,400.00 4,632.94 40,678.26 63,600.00 212,000.00 71,376.96 Program: 2000 - General Administration - - - 51 Labor 23,226.99 317,867.32 405,700.00 9,954.45 135,358.86 165,300.00 571,000.00 117,773.82 53 Overtime 53.66 1,305.84 - 22.99 559.60 - - (1,865.44) 56 Benefits 12,514.43 168,988.30 186,200.00 3,708.76 54,590.16 69,800.00 256,000.00 32,421.54 62 Materials and Supplies 593.59 2,866.55 7,000.00 254.39 1,262.55 3,000.00 10,000.00 5,870.90 63 Contract Services 34,781.87 246,823.77 246,600.00 14,906.52 106,924.48 90,000.00 336,600.00 (17,148.25) 64 Utilities 177.97 1,725.79 3,500.00 76.28 739.66 1,500.00 5,000.00 2,534.55 65 Professional Development 1,291.76 75,401.58 81,900.00 553.61 32,314.94 35,100.00 117,000.00 9,283.48 Program: 2000 - General Administration Total: 72,640.27 814,979.15 930,900.00 29,477.00 331,750.25 364,700.00 1,295,600.00 148,870.60 Program: 2100 - Human Resources - - - - 51 Labor 10,570.57 126,437.06 140,700.00 4,530.24 54,187.32 60,300.00 201,000.00 20,375.62 52 Temporary Labor 453.60 6,842.25 8,400.00 194.40 2,932.39 3,600.00 12,000.00 2,225.36 53 Overtime 18.17 1,153.97 2,100.00 7.79 494.58 900.00 3,000.00 1,351.45 56 Benefits 4,733.48 61,479.10 74,800.00 2,028.53 25,043.59 29,200.00 104,000.00 17,477.31 62 Materials and Supplies 278.35 619.80 4,900.00 119.29 265.63 2,100.00 7,000.00 6,114.57 63 Contract Services 3,305.29 40,798.70 65,500.00 1,416.57 17,485.27 28,800.00 94,300.00 36,016.03 64 Utilities 28.72 279.47 700.00 12.30 119.72 300.00 1,000.00 600.81 65 Professional Development 3,317.14 21,378.29 23,800.00 1,391.46 8,360.29 10,200.00 34,000.00 4,261.42 67 Other 8,314.25 207,036.67 207,900.00 3,563.24 88,729.96 89,100.00 297,000.00 1,233.37 Program: 2100 - Human Resources Total: 31,019.57 466,025.31 528,800.00 13,263.82 197,618.75 224,500.00 753,300.00 89,655.94 Program: 2200 - Public Affairs - - - - 51 Labor 10,101.22 132,377.17 148,000.00 8,643.57 108,279.63 130,000.00 278,000.00 37,343.20 52 Temporary Labor - 478.80 - - 205.20 - - (684.00) 53 Overtime 129.79 2,694.02 3,500.00 129.78 2,337.67 3,500.00 7,000.00 1,968.31 Month Ended May 31, 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 May 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 56 Benefits 3,547.06 47,561.00 53,000.00 2,506.71 30,885.17 43,000.00 96,000.00 17,553.83 62 Materials and Supplies 292.84 22,493.38 82,500.00 292.84 45,828.95 82,500.00 165,000.00 96,677.67 63 Contract Services 7,711.09 41,792.09 47,070.00 7,711.10 44,265.53 49,400.00 96,470.00 10,412.38 64 Utilities 73.38 12,203.67 11,500.00 73.38 12,271.41 11,500.00 23,000.00 (1,475.08) 65 Professional Development 88.28 4,491.91 10,000.00 88.29 4,497.49 10,000.00 20,000.00 11,010.60 Program: 2200 - Public Affairs Total: 21,943.66 264,092.04 355,570.00 19,445.67 248,571.05 329,900.00 685,470.00 172,806.91 Program: 2300 - Conservation - - - - 51 Labor 12,406.57 163,831.57 198,000.00 - - - 198,000.00 34,168.43 52 Temporary Labor - 4,284.00 - - - - - (4,284.00) 53 Overtime 464.18 2,156.57 8,000.00 - - - 8,000.00 5,843.43 56 Benefits 2,487.33 32,512.54 39,000.00 - - - 39,000.00 6,487.46 62 Materials and Supplies 15,323.95 284,039.68 524,000.00 - - - 524,000.00 239,960.32 63 Contract Services 13,089.31 61,957.76 302,150.00 - - - 302,150.00 240,192.24 64 Utilities 72.48 845.77 41,000.00 - - - 41,000.00 40,154.23 65 Professional Development 258.84 2,822.69 12,000.00 - - - 12,000.00 9,177.31 Program: 2300 - Conservation Total: 44,102.66 552,450.58 1,124,150.00 - - - 1,124,150.00 571,699.42 Program: 3000 - Finance - - - - 51 Labor 30,221.94 372,256.88 448,000.00 12,952.26 158,693.61 192,000.00 640,000.00 109,049.51 52 Temporary Labor - 13,939.00 9,800.00 - 5,973.85 4,200.00 14,000.00 (5,912.85) 53 Overtime 650.61 7,101.24 2,100.00 278.84 2,705.07 900.00 3,000.00 (6,806.31) 56 Benefits 12,566.71 166,133.22 178,500.00 5,385.05 69,792.75 76,500.00 255,000.00 19,074.03 62 Materials and Supplies 130.41 6,909.36 4,200.00 55.88 2,942.51 1,800.00 6,000.00 (3,851.87) 63 Contract Services 301.05 133,245.31 124,800.00 129.00 61,055.63 104,750.00 229,550.00 35,249.06 64 Utilities 123.24 1,461.43 2,800.00 52.81 626.32 1,200.00 4,000.00 1,912.25 65 Professional Development 1,202.50 7,220.72 16,800.00 515.36 3,094.62 7,200.00 24,000.00 13,684.66 67 Other - 735.85 1,000.00 - - - 1,000.00 264.15 Program: 3000 - Finance Total: 45,196.46 709,003.01 788,000.00 19,369.20 304,884.36 388,550.00 1,176,550.00 162,662.63 Program: 3200 - Information Technology - - - - 51 Labor 15,298.08 173,757.20 203,000.00 6,556.32 80,291.63 87,000.00 290,000.00 35,951.17 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 4,609.23 53,614.39 72,800.00 1,975.34 26,310.11 31,200.00 104,000.00 24,075.50 62 Materials and Supplies 570.31 27,819.25 19,300.00 244.42 9,381.51 9,000.00 28,300.00 (8,900.76) 63 Contract Services 19,254.56 149,549.28 225,400.00 8,251.96 64,047.51 96,600.00 322,000.00 108,403.21 64 Utilities 242.57 2,560.39 3,500.00 103.96 1,097.31 1,500.00 5,000.00 1,342.30 65 Professional Development 1,453.10 12,134.06 16,100.00 622.76 5,200.32 6,900.00 23,000.00 5,665.62 Program: 3200 - Information Technology Total: 41,427.85 419,434.57 540,100.00 17,754.76 186,328.39 232,200.00 772,300.00 166,537.04 Program: 3300 - Customer Service - - - - 51 Labor 23,930.40 261,141.02 318,100.00 11,289.91 118,466.39 144,900.00 463,000.00 83,392.59 52 Temporary Labor - 13,850.29 2,100.00 - 5,935.84 900.00 3,000.00 (16,786.13) 53 Overtime 786.64 3,062.38 3,500.00 337.12 1,312.43 1,500.00 5,000.00 625.19 56 Benefits 13,019.51 136,527.62 163,800.00 6,168.20 67,308.72 70,200.00 234,000.00 30,163.66 Page 5 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE 62 Materials and Supplies 354.44 2,861.90 9,200.00 151.90 1,226.55 1,800.00 11,000.00 6,911.55 63 Contract Services 35,661.68 529,778.45 680,680.00 8,254.61 106,640.41 131,500.00 812,180.00 175,761.14 64 Utilities 7,558.16 61,543.66 107,100.00 3,239.22 26,375.87 45,900.00 153,000.00 65,080.47 65 Professional Development 52.18 1,934.76 12,900.00 - 251.24 5,100.00 18,000.00 15,814.00 67 Other 0.04 561.31 - - 7.50 - - (568.81) Program: 3300 - Customer Service Total: 81,363.05 1,011,261.39 1,297,380.00 29,440.96 327,524.95 401,800.00 1,699,180.00 360,393.66 Program: 3400 - Meter Service - - - - 51 Labor 15,491.89 193,365.01 210,000.00 - - - 210,000.00 16,634.99 53 Overtime 1,453.34 6,453.94 20,000.00 - - - 20,000.00 13,546.06 56 Benefits 7,226.45 81,098.61 104,000.00 149.90 7,429.97 - 104,000.00 15,471.42 62 Materials and Supplies - 1,549.80 4,000.00 - - - 4,000.00 2,450.20 63 Contract Services 338.07 8,193.94 8,000.00 - - - 8,000.00 (193.94) 64 Utilities 73.93 748.86 2,000.00 - - - 2,000.00 1,251.14 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 24,583.68 291,410.16 348,000.00 149.90 7,429.97 - 348,000.00 49,159.87 Program: 4000 - Engineering - - - - 51 Labor 25,931.81 306,154.73 427,200.00 16,053.95 173,379.04 171,800.00 599,000.00 119,466.23 52 Temporary Labor - 569.80 - - 244.20 - - (814.00) 53 Overtime 109.03 1,633.90 1,400.00 46.72 700.22 600.00 2,000.00 (334.12) 56 Benefits 14,630.76 168,468.28 190,400.00 6,270.14 72,880.24 81,600.00 272,000.00 30,651.48 62 Materials and Supplies 261.59 3,988.40 16,100.00 19.39 190.99 6,900.00 23,000.00 18,820.61 63 Contract Services 277.28 114,673.42 152,550.00 - 21,267.00 65,350.00 217,900.00 81,959.58 64 Utilities 945.05 79,101.21 86,100.00 405.01 13,261.51 36,900.00 123,000.00 30,637.28 65 Professional Development 154.00 3,776.19 18,900.00 - 266.06 8,100.00 27,000.00 22,957.75 Program: 4000 - Engineering Surplus Total: 42,309.52 678,365.93 892,650.00 22,795.21 282,189.26 371,250.00 1,263,900.00 303,344.81 Program: 5000 - Water Production - - - - 51 Labor 46,346.11 567,469.68 626,000.00 - - - 626,000.00 58,530.32 53 Overtime 2,566.27 43,669.86 36,000.00 - - - 36,000.00 (7,669.86) 54 Standby 1,120.00 13,389.52 15,000.00 - - - 15,000.00 1,610.48 56 Benefits 18,567.73 234,535.68 284,000.00 - - - 284,000.00 49,464.32 61 Water Supply 201,280.00 1,066,525.37 937,000.00 - - - 937,000.00 (129,525.37) 62 Materials and Supplies 11,363.73 163,742.06 279,000.00 - - - 279,000.00 115,257.94 63 Contract Services 10,231.74 213,783.27 341,000.00 - - - 341,000.00 127,216.73 64 Utilities 119,626.95 1,245,255.30 1,612,850.00 - - - 1,612,850.00 367,594.70 65 Professional Development 728.11 9,111.93 9,000.00 - - - 9,000.00 (111.93) Program: 5000 - Water Production Total: 411,830.64 3,557,482.67 4,139,850.00 - - - 4,139,850.00 582,367.33 Program: 5100 - Water Treatment - - - - 51 Labor 16,408.46 196,388.52 217,000.00 - - - 217,000.00 20,611.48 53 Overtime 1,154.88 13,030.48 10,000.00 - - - 10,000.00 (3,030.48) 56 Benefits 6,360.24 80,603.43 69,000.00 - - - 69,000.00 (11,603.43) 62 Materials and Supplies - 132,382.59 165,000.00 - - - 165,000.00 32,617.41 63 Contract Services 1,675.80 69,310.34 166,000.00 - - - 166,000.00 96,689.66 64 Utilities 5,180.38 80,291.84 200,000.00 - - - 200,000.00 119,708.16 Page 6 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment Total: 30,779.76 572,007.20 827,000.00 - - - 827,000.00 254,992.80 Program: 5200 - Water Quality - - - - 51 Labor 12,254.62 146,311.19 162,000.00 - - - 162,000.00 15,688.81 53 Overtime - 6,540.87 4,000.00 - - - 4,000.00 (2,540.87) 56 Benefits 4,193.46 54,724.77 60,000.00 - - - 60,000.00 5,275.23 62 Materials and Supplies 379.50 8,010.74 18,000.00 - - - 18,000.00 9,989.26 63 Contract Services 13,000.59 116,556.22 161,000.00 - - - 161,000.00 44,443.78 64 Utilities - 1,851.62 2,000.00 - - - 2,000.00 148.38 65 Professional Development - - - - - - - - Program: 5200 - Water Quality Total: 29,828.17 333,995.41 407,000.00 - - - 407,000.00 73,004.59 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 5,516.94 80,460.55 94,500.00 2,364.34 16,166.38 10,500.00 105,000.00 8,373.07 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 54 Standby 1,256.00 18,027.23 18,000.00 264.00 2,429.91 2,000.00 20,000.00 (457.14) 56 Benefits 2,322.74 28,466.35 37,800.00 1,150.02 10,513.96 4,200.00 42,000.00 3,019.69 62 Materials and Supplies - 828.57 2,700.00 - 9.81 300.00 3,000.00 2,161.62 63 Contract Services - - - - - - - - 64 Utilities 1,515.85 11,788.74 18,900.00 168.43 1,309.86 2,100.00 21,000.00 7,901.40 65 Professional Development 3,628.82 13,694.17 22,500.00 33.20 927.22 2,500.00 25,000.00 10,378.61 Program: 6000 - Field Maintenance Administration Total 14,240.35 153,265.61 194,400.00 3,979.99 31,357.14 21,600.00 216,000.00 31,377.25 Program: 6100 - Water Maintenance - - - - 51 Labor 47,510.53 694,705.71 727,000.00 - (156.00) - 727,000.00 32,450.29 53 Overtime 11,978.35 169,690.11 150,000.00 - - - 150,000.00 (19,690.11) 56 Benefits 24,362.88 360,132.38 316,000.00 - - - 316,000.00 (44,132.38) 62 Materials and Supplies 33,284.80 150,633.30 232,000.00 - - - 232,000.00 81,366.70 63 Contract Services 14,739.11 193,559.98 334,000.00 - - - 334,000.00 140,440.02 64 Utilities 10,811.86 15,581.18 - - 135.00 - - (15,716.18) Program: 6100 - Water Maintenance Total: 142,687.53 1,584,302.66 1,759,000.00 - (21.00) - 1,759,000.00 174,718.34 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 19,210.98 189,636.46 302,000.00 302,000.00 112,363.54 53 Overtime - - - 3,671.21 5,263.93 3,000.00 3,000.00 (2,263.93) 56 Benefits - - - 8,233.34 29,549.24 55,000.00 55,000.00 25,450.76 62 Materials and Supplies - - - - 30,923.98 32,000.00 32,000.00 1,076.02 Wastewater Treatment - - - 670,312.90 7,384,387.34 7,610,000.00 7,610,000.00 225,612.66 63 Contract Services - - - 804.51 166,818.47 229,850.00 229,850.00 63,031.53 Program: 6200 - Wastewater Maintenance Total:- - - 702,232.94 7,806,579.42 8,231,850.00 8,231,850.00 425,270.58 Page 7 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 6,058.34 68,823.99 62,300.00 673.14 8,208.46 26,700.00 89,000.00 11,967.55 53 Overtime 539.55 14,318.51 17,500.00 59.95 2,510.96 7,500.00 25,000.00 8,170.53 56 Benefits 3,510.81 38,325.96 25,900.00 851.73 10,861.59 11,100.00 37,000.00 (12,187.55) 62 Materials and Supplies 3,726.05 26,357.41 33,900.00 910.74 8,381.69 8,100.00 42,000.00 7,260.90 63 Contract Services 28,937.06 298,810.07 305,450.00 3,780.26 45,595.49 83,400.00 388,850.00 44,444.44 64 Utilities 11,098.59 105,767.57 159,200.00 4,705.51 44,618.42 61,800.00 221,000.00 70,614.01 65 Professional Development - - - - - - - - Program: 7000 - Facilities Maintenance Total: 53,870.40 552,403.51 604,250.00 10,981.33 120,176.61 198,600.00 802,850.00 130,269.88 Program: 7100 - Fleet Maintenance - - - - 51 Labor 10,456.40 126,018.08 135,900.00 1,161.82 16,425.29 15,100.00 151,000.00 8,556.63 53 Overtime - 993.79 2,700.00 - 191.62 300.00 3,000.00 1,814.59 56 Benefits 4,012.43 45,139.68 59,400.00 445.80 7,246.11 6,600.00 66,000.00 13,614.21 62 Materials and Supplies 5,327.55 62,644.23 62,100.00 591.95 10,036.97 6,900.00 69,000.00 (3,681.20) 63 Contract Services 5,093.70 69,428.73 112,500.00 3,997.40 20,566.40 12,500.00 125,000.00 35,004.87 64 Utilities 7,854.28 76,655.14 113,400.00 872.69 8,517.21 12,600.00 126,000.00 40,827.65 65 Professional Development - 1,555.20 4,500.00 - 172.80 500.00 5,000.00 3,272.00 Program: 7100 - Fleet Maintenance Total: 32,744.36 382,434.85 490,500.00 7,069.66 63,156.40 54,500.00 545,000.00 99,408.75 Program: 8000 - Capital - - - 71 -Debt Service - 1,653,321.86 4,007,000.00 - 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:- 1,653,321.86 5,958,519.00 - 221,625.00 3,148,317.00 9,106,836.00 7,231,889.14 Total Surplus (Deficit): 923,567.84$ 8,811,710.14$ -$ 172,402.15$ 1,638,332.84$ -$ -$ -$ Page 8 of 8 B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5.d. Meeting Date: June 28, 2017 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: R esolution 2017.10 - P aloma R oad S ewer Main R ehabilitatio n No tice o f C o mp letio n R E C O MM E N D AT IO N: 1 . S taff recommends that the Board o f Direc tors acc ep t the P aloma R o ad S ewer Main R ehabilitatio n P ro ject as c omplete and ado p t R es o lution 2017.10 to authorize rec o rd atio n o f the No tic e of C o mpletio n (NO C ) for the c o ntrac t to Merlin Jo hnson C o nstruc tio n Inc . 2 . Autho rize release o f retentio n mo nies in the amo unt of $4,590, fo rty-five d ays after acc eptanc e of the work b y the Bo ard . 3. Autho rize releas e of P erformanc e and P ayment Bond s twelve (12) months after p rojec t ac ceptance. B AC KG R O UN D / AN ALYS IS : O n Ap ril 10, 2017, Eas t Valley Water Dis tric t entered into an agreement with Merlin Jo hns on C o ns tructio n, Inc ., for a total o f $45,900 to rehabilitate 680 lineal feet o f sewer main in P alo ma R o ad with the ins tallatio n o f a s lip liner. T he sc o p e of wo rk inc luded cleaning the existing VC P s ewer line, ins tallation o f a P VC liner and vid eo ins p ection before and after ins tallatio n of the lining. T his c o ns truction was c ompleted b y Merlin Jo hnson C ons truc tion Inc. on June 30, 2017. S taff has reviewed the video ins p ec tion and d etermined the work to b e s atis fac tory and complete. AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I - Enc o urage Inno vative Investments To P romote S ustainab le Benefits (A) - Develop projec ts and pro grams to ens ure safe and reliab le s ervic es (B) - Manage and id entify metho d s to cons erve natural res ources R E VIE W B Y O T HE R S : T he F inanc e Dep artment and O perations Dep artment have reviewed the agenda item. F IS C AL IMPAC T : R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: S teve Nix, P E, P LS Direc tor of Engineering & O perations T his p ro jec t is fund ed in the F Y 2016-17 C apital Improvement P rogram. ATTAC H M E NTS: Description Type Resolution 201 7.10 Resolution Lette r Notice of Completion S3170 P aloma Rd CIIP Repair Backup Material East Valley Water District Resolution 2017.10 Page 1 of 1 RESOLUTION 2017.10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING NOTICE OF COMPLETION Merlin Johnson Construction, Inc. BE IT HEREBY RESOLVED, by the Board of Directors of the East Valley Water District, as follows: WHEREAS, based upon the certificate of completion executed by the District for the cleaning, lining and videoing of 680 lineal feet of 8” sewer main and all appurtenances in Paloma Road in the City of San Bernardino, and has been constructed for East Valley Water District by Merlin Johnson Construction, Inc. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors hereby determine that said contract is completed and the President and Secretary are hereby authorized to execute a Notice of Completion on behalf of the District, and the Secretary is hereby authorized and directed to record said Notice of Completion in the office of the County Recorder, County of San Bernardino, State of California. * * * * * The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District upon motion duly made, seconded and carried on June 28, 2017. ADOPTED this 28th day of June 2017. Ayes: Noes: Absent: Abstain: ____________________________ Ronald L. Coats Board President I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2017.10 adopted by the Board of Directors of East Valley Water District at its regular meeting held June 28, 2017. __________________________ John Mura Secretary RECORDING REQUESTED BY ] Martha Duran ] AND WHEN RECORDED MAIL TO ] ] ] Name East Valley Water District ] Street 31111 Greenspot Road ] Address Highland, CA 92346 ] Attn: Engineering Department ] City & S-3170 ] State ] FEE EXEMPT PURSUANT TO GOVERNMENT CODE SECTION 6103 ____________________________________________________________________________________________________ SPACE ABOVE THIS LINE FOR RECORDER’S USE NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is East Valley Water District 3. The full address of the owner is 31111 Greenspot Road, Highland CA 92346 San Bernardino County 4. The nature of the interest or estate of the owner is, in fee. None (If other than fee, strike “In fee” and insert, for example, “purchaser under contract of purchase, “or lessee”) 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAME ADDRESS East Valley Water District 31111 Greenspot Road, Highland CA 92346 6. A work of improvement on the property hereinafter described was completed on May 31, 2017.The work done was: An 8” sewer main rehabilitation by Cured-in-Place-Pipe (CIPP) method for 680 lineal feet of existing sewer main. The work included jetting the main, reactivating the customer sewer laterals, pre and post videoing. 7. The name of the contractor, if any, for such work of improvement was_________________________________________ Merlin Johnson Construction, Inc. 04/10/2017 (If no contractor for work of improvement as a whole, insert “none” (Date of Contract) 8. The property on which said work of improvement was completed is in the City of Highland in the County of San Bernardino, State of California, and is described as follows: Located on Paloma Road between Del Rosa Drive and Golondrina Drive in the City of Highland, in the Recorders Office of said County. 9. The street address of said property is “None” (If no street address has been difficulty assigned, insert, “none”.) Date: June 28, 2017 Verification for Individual Owner ________________________________________________________________ Signature of owner or corporate officer of owner named in paragraph 2 or his agent Ronald L. Coats, Board President East Valley Water District VERIFICATION I, the undersigned, say: I am the Board Secretary the declarant of the foregoing (“President of “, “Manager of”, “A partner of”, “Owner of”. Etc.) notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on June28 , , 2017 , at Highland , California. (Date of signature.) (City, where signed.) ________________________________________________________________ (Personal signature of the individual who is swearing that the contents of the notice of completion are true.) John Mura, Board Secretary East Valley Water District B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5.e. Meeting Date: June 28, 2017 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: R esolution 2017.11 - North F ork P ip eline R ehabilitatio n No tice o f C o mp letio n R E C O MM E N D AT IO N: 1 . S taff rec o mmend s that the Bo ard o f Directo rs ac c ep t the North F ork P ip eline R eplac ement P rojec t as c o mp lete and ad o p t R esolutio n 2017.11 to autho rize rec o rd ation o f the Notic e of C ompletion (NO C ) for the c o ntrac t to Merlin Jo hnson C o nstruc tio n Inc . 2 . Autho rize release o f retentio n mo nies in the amo unt of $5,160, fo rty-five d ays after acc eptanc e of the work b y the Bo ard . 3. Autho rize releas e of P erformanc e and P ayment Bond s twelve (12) months after p rojec t ac ceptance. B AC KG R O UN D / AN ALYS IS : O n Marc h 10, 2017, Eas t Valley Water Dis trict entered an agreement with Merlin Jo hnson C onstruc tion, Inc ., for a to tal of $51,600 to replac e 85 lineal feet of 30-inc h diameter steel main c rossing the S anta Ana R iver. T he s c o p e o f wo rk inc luded b y-pas s ing the North F o rk flo w fro m the Edis o n after bay, removing and dispos ing o f the exis ting p ipeline and ins talling the new pipeline. Merlin Jo hns o n C o ns tructio n Inc., has fulfilled all the requirements o f the Agreement. AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I - Enc o urage Inno vative Investments To P romote S ustainab le Benefits (A) - Develop projec ts and pro grams to ens ure safe and reliab le s ervic es (B) - Manage and id entify metho d s to cons erve natural res ources R E VIE W B Y O T HE R S : T he F inanc e Dep artment and O perations Dep artment have reviewed the agenda item. F IS C AL IMPAC T : T his p ro jec t is fund ed in the F Y 2016-17 C apital Improvement P rogram. R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: S teve Nix, P E, P LS Direc tor of Engineering & O perations ATTAC H M E NTS: Description Type Resolution 201 7.11 Backup Material Notice of Completion W258 5 NorthForkSAR Repair Backup Material East Valley Water District Resolution 2017.11 Page 1 of 1 RESOLUTION 2017.11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING NOTICE OF COMPLETION Merlin Johnson Construction, Inc. BE IT HEREBY RESOLVED, by the Board of Directors of the East Valley Water District, as follows: WHEREAS, based upon the certificate of completion executed by the District for the construction included installing 80 lineal feet of 30” pipe, remove and dispose of existing 30” diameter pipe. Construct a 55” x 30” reducer at one end; a flex coupling at the other and all appurtenances in the City of Highland, and has been constructed for East Valley Water District by Merlin Johnson Construction, Inc. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors hereby determine that said contract is completed and the President and Secretary are hereby authorized to execute a Notice of Completion on behalf of the District, and the Secretary is hereby authorized and directed to record said Notice of Completion in the office of the County Recorder, County of San Bernardino, State of California. * * * * * The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District upon motion duly made, seconded and carried on June 28, 2017. ADOPTED this 28th day of June 2017. Ayes: Noes: Absent: Abstain: ____________________________ Ronald L. Coats Board President I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2017.10 adopted by the Board of Directors of East Valley Water District at its regular meeting held June 28, 2017. __________________________ John Mura Secretary RECORDING REQUESTED BY ] Martha Duran ] AND WHEN RECORDED MAIL TO ] ] ] Name East Valley Water District ] Street 31111 Greenspot Road ] Address Highland, CA 92346 ] Attn: Engineering Department ] City & W-2585 ] State ] FEE EXEMPT PURSUANT TO GOVERNMENT CODE SECTION 6103 ____________________________________________________________________________________________________ SPACE ABOVE THIS LINE FOR RECORDER’S USE NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is East Valley Water District 3. The full address of the owner is 31111 Greenspot Road, Highland CA 92346 San Bernardino County 4. The nature of the interest or estate of the owner is, in fee. None (If other than fee, strike “In fee” and insert, for example, “purchaser under contract of purchase, “or lessee”) 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAME ADDRESS East Valley Water District 31111 Greenspot Road, Highland CA 92346 6. A work of improvement on the property hereinafter described was completed on June 09, 2017.The work done was: Construction included installing 80 lineal feet of 30” CML & C of ½” wall thickness pipe, remove and dispose of existing 30” diameter pipe. Construct a 55” X 30” reducer at one end: a flex coupling at the other. 7. The name of the contractor, if any, for such work of improvement was_________________________________________ Merlin Johnson Construction, Inc. 06/09/2017 (If no contractor for work of improvement as a whole, insert “none” (Date of Contract) 8. The property on which said work of improvement was completed is in the City of Highland in the County of San Bernardino, State of California, and is described as follows: East of Santa Ana Canyon Road North of Greenspot Road, crossing the Santa Ana River, in the City of Highland, in the Recorders Office of said County. 9. The street address of said property is “None” (If no street address has been difficulty assigned, insert, “none”.) Date: June 28, 2017 Verification for Individual Owner ________________________________________________________________ Signature of owner or corporate officer of owner named in paragraph 2 or his agent Ronald L. Coats, Board President East Valley Water District VERIFICATION I, the undersigned, say: I am the Board Secretary the declarant of the foregoing (“President of “, “Manager of”, “A partner of”, “Owner of”. Etc.) notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on June 28, , 2017 , at Highland , California. (Date of signature.) (City, where signed.) ________________________________________________________________ (Personal signature of the individual who is swearing that the contents of the notice of completion are true.) John Mura, Board Secretary East Valley Water District B OAR D AG E N D A S TAF F R E P O RT Agenda Item #6. Meeting Date: June 28, 2017 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: Ad opt the P ropos ed F Y 2017-18 O perating and C apital Budget R E C O MM E N D AT IO N: S taff rec ommends that the Board of Direc tors adop t the pro p o s ed F Y 2017-18 O p erating and C ap ital Budget. B AC KG R O UN D / AN ALYS IS : T he F Y 2017-18 O p erating and C ap ital Budget has been d evelo p ed to continue to provid e high q uality water d elivery and wastewater collectio n s ervices to Dis tric t ratep ayers . In d evelop ing the fisc al plan fo r next year, staff remained foc us ed on key issues . At the s ame time, staff ensured that exp end itures d irectly c o rrelate to Agenc y Ideals and O rganizational Endeavo rs . T he o p erating budget is p resented b y p ro gram, each having s tated go als and o bjec tives for the up coming fis c al year that align with Agenc y Ideals , and each ac c o mp anied by funding reques ts to s upp o rt tho s e objectives . T he C apital Bud get s pec ific ally identifies equip ment s c hed uled fo r replac ement or upgrade, and p ro jec ts from the C apital Imp ro vement P ro gram d es ignated as high p riority due to age and c o nditio n, o r having ins uffic ient c ap acity to meet anticipated growth. Revenues: As dis c us s ed in the Board works ho p o n May 17, 2017, total revenue projec ted fo r F Y 2017-18 is $36,624,000, a 2% inc rease over revenue pro jected fo r the p rio r year. F acto rs affecting revenue p ro jec tions includ e: C o nservative es timates of water cons ump tion b y c usto mers Modified phas e 3 water rates R es cind ed p has e 3 meter rates Wastewater Treatment rate inc reased impos ed by the C ity of S an Bernard ino Decreas ed "O ther R evenue" as staff works to help c usto mers avoid delinquent charges Ac tion taken by the Bo ard to modify/res cind phase 3 adjus tments to water rates and meter c harges will save District ratepayers ap p roximately $1.36 millio n in the upc o ming fisc al year. P rojec ted revenues are s ummarized in the c hart b elow: Expenses: T he Dis trict ac counts for all operating expens es at the p ro gram level. Each program is evaluated on an annual b as is to d etermine its effectivenes s. As a result, s o me p ro grams may b e redefined o r enhanc ed, in o rder to ens ure that the pro grams are run effec tively and with a high level of ac countability. F Y 2017-18 p ro gram exp ens es are b udgeted fo r $26,994,000, a 1.1% inc reas e c o mp ared to the p rior fisc al year. Total p ro gram exp ens es are p resented by c o st type below: Capital Outlay: T he C apital O utlay Bud get is an effo rt to plan for the rep lacement of vehic les and equip ment. T he o b jec tive is to s tand ardize the replacement proc es s in ord er to c reate a managed sys tem of p urc has ing and funding c ap ital eq uip ment, thereby allo wing the Dis trict to ac c urately plan and budget fo r future need s . T he cost o f independ ent s tud ies enc o mp as sing lo ng-term infras truc ture planning, and cos t of s ervice rate s tudies, are als o includ ed in C ap ital O utlay. T he F Y 2017-18 C apital O utlay Budget totals $611,000 and inc lud es a c o mbinatio n of eq uip ment purchases, investments in technology, and p lanning s tudies as s ummarized in the tab le b elo w: Proposed Capital Outlay Amount F leet Vehicles $ 105,000 Emergenc y G enerato r 135,000 O ffic e F urniture / Eq uip ment 91,000 Master P lan / C ost of S ervic e S tudies 260,000 C C T V C amera 20,000 Total $ 611,000 Capital Improvement Program: T his year ’s propos ed C apital Improvement P ro gram (C I P ) bud get totals $6,780,000, and foc us es o n multiple key is s ues inc lud ing water quality, s ystem maintenance, and water s upply p rovid ed by the propos ed S terling Natural R es ourc es C enter. T he C I P bud get is fully fund ed utilizing $4,287,000 from o p erating revenue, $500,000 in develo p er fees , and $1,993,000 in unrestricted (enc umbered ) reserves . A summary of the C ap ital Imp rovement P ro gram budget fo r 2017-18, by p ro ject typ e, is s hown in the fo llowing tab le: Proposed C IP P roject Amount Water S torage $ 1,230,000 Treatment P lant Modific atio ns 2,350,000 Water / Was tewater P ipelines 2,200,000 F ac ility R elo catio ns / R ehabilitatio n 325,000 S NR C Water R ec yc ling P lant 675,000 Total $ 6,780,000 Mid -year bud get reviews c o nd uc ted in F ebruary o f each year allo w the Dis tric t to measure ac tual revenue against revenue p ro jec tions and d etermine whether excess revenue, if any, are s uffic ient to fund ad d itio nal p rojec ts . Debt S ervice: T he Dis tric t will pay d eb t servic e on s ix debt instruments in F Y 2017-18. Both water and was tewater revenues are p ledged as sec urity for revenue b o nd s , while o nly water revenues are pledged fo r repayment of exis ting lo ans . A p reliminary calc ulation based o n b udget numbers has res ulted in F Y 2017-18 debt s ervice c o verage o f 223%, well in excess o f the 120% req uired by b o nd doc uments . Debt s ervic e payments sc heduled fo r 2017-18 are s hown in the following table: Debt Issue Interest Rate F Y 2017-18 D ebt S ervice 2010 R evenue Bo nd s 3.95%$ 2,586,000 2013 R evenue Bo nd s 4.52%584,000 DW R Loan – Treatment P lant 0.00%254,000 DW R Loan – As s essment Distric ts 0.00%20,000 US Bank Loan 2.38%456,000 S BVMW D Lo an 0.78%415,000 Total $ 4,315,000 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 Conclusion: S taff has ded icated a s ignific ant amo unt o f time to the c areful evaluatio n o f revenue and p ro gram exp enditures , to develo p a bud get that will p ro vide s uffic ient funding to meet the needs of the community, c red itors , and other stakeho lders . T hroughout the c o ming year, s taff will clos ely monito r revenues versus p rogram s p ending, and make ad jus tments as nec es sary to ensure the Dis tric t’s fisc al s ustainability. AGE N C Y ID E ALS AN D E N DE AVO R S: R E VIE W B Y O T HE R S : T his agend a item has b een reviewed b y the Administratio n, Engineering, F inanc e, O perations , and P ublic Affairs Departments. F IS C AL IMPAC T : T he F Y 2017-18 O p erating Budget is balanc ed with a p ro jec ted contrib utio n o f $417,000 to res erves . T he C apital Bud get is fully funded as p resented. ATTAC H M E NTS: Description Type F Y 201 7/18 Budget P re sentation P resentation F Y 201 7/18 Draft Budget Document Backup Material EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT OPERATING & CAPITAL BUDGETS JUNE 28, 2017 EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT DISTRICT-WIDE GOALS 2 EAST VALLEY WATER DISTRICT EAST VALLEY WATER DISTRICT PROPOSED GOALS & OBJECTIVES FISCAL YEAR 2017-18 FINANCIALS EAST VALLEY WATER DISTRICT4 WATER FUND FY 2017-18 TOTAL WATER BUDGET $24,047,000 BUDGET HIGHLIGHTS •Implementation Of Modified Phase 3 Water Tier Rates •Water Quality Solutions •Hydroelectric Power Generation •Preventative Maintenance Water Sales 60% Other Charges 3% Meter 37% SOURCE OF REVENUE Program Exenditures 66% Debt Service 17% Capital Expenditures 17% EXPENDITURES EAST VALLEY WATER DISTRICT5 WASTEWATER FUND Collection Charges 36%Treatment Charges 63% Other Charges 1% SOURCE OF REVENUE Other Program Expenses 27% Treatment Expense 61% Debt Service 2%Capital 10% EXPENDITURES FY 2017-18 TOTAL WASTEWATER BUDGET $12,577,000 BUDGET HIGHLIGHTS •Increase in Wastewater Treatment Rates by City of San Bernardino •Continued Assessment and Repair of Collection System •Sterling Natural Resource Center EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT PROGRAM EXPENDITURE SUMMARY WATER FUND WASTEWATER FUND TOTAL Governing Board $ 160,300 $ 68,700 $ 229,000 General Administration 840,700 360,300 1,201,000 HR / Risk Management 591,500 253,500 845,000 Public Affairs 414,000 414,000 828,000 Conservation 575,000 -575,000 Finance 827,700 354,300 1,182,000 Information Technology 674,100 288,900 963,000 Customer Service 1,392,100 441,900 1,834,000 Meter Service 397,000 -397,000 Engineering 1,009,400 432,600 1,442,000 Water Treatment 890,000 -890,000 6 EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT PROGRAM EXPENDITURE SUMMARY WATER FUND WASTEWATER FUND TOTAL Water Production Administration 469,000 -469,000 Source of Supply $ 2,654,000 $ -$ 2,654,000 Pumps & Boosters 726,000 -726,000 Transmission & Distribution 223,000 -223,000 Water Quality 410,000 -410,000 Water Maintenance 2,021,000 -2,021,000 Maintenance Administration 198,000 22,000 220,000 Wastewater Maintenance -8,593,000 8,593,000 Facilities Maintenance 585,800 190,200 776,000 Fleet Maintenance 464,400 51,600 516,000 Total $ 15,523,000 $ 11,471,000 $ 26,994,000 7 EAST VALLEY WATER DISTRICT DEBT SERVICE 2010 Bonds $2,586,000 2013 Bonds $585,000 SRF Loans $273,000 US Bank Loan $456,000 SBVMWD Loan $415,000 2017-18 Payments -$4,315,000 Debt Proceeds Used For Plant 134 Treatment Upgrade Plant 134 Hydro Electric Plant Administration/ Operations Facility Honeywell Energy Projects 4 Million Gallon Underground Tank 8 EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT OPERATING BUDGET SUMMARY WATER FUND WASTEWATER FUND TOTAL Revenue Sales & Services $ 23,345,000 $ 12,445,000 $ 35,790,000 Other Charges 577,000 110,000 687,000 Interest & Miscellaneous Revenue 125,000 22,000 147,000 Total Revenue $ 24,047,000 $ 12,577,000 $ 36,624,000 Expenditures Program Expenses $ 15,523,000 $ 11,471,000 $ 26,994,000 Debt Service 4,002,000 313,000 4,315,000 Capital Expenditures 4,105,000 793,000 4,898,000 Reserve Contributions 417,000 -417,000 Total Expenditures $ 24,047,000 $ 12,577,000 $ 36,624,000 9 EAST VALLEY WATER DISTRICT PROPOSED GOALS & OBJECTIVES FISCAL YEAR 2017-18 CAPITAL BUDGET EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT CAPITAL OUTLAY DESCRIPTION AMOUNT Fleet Vehicles $ 105,000 Emergency Generator 135,000 Office Equipment / Furniture 91,000 Planning Studies 260,000 CCTV Camera 20,000 Total $ 611,000 One-Time Purchases 11 EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROJECTS DESCRIPTION AMOUNT Water Storage $1,230,000 Treatment Plant Modifications 2,350,000 Water / Wastewater Pipelines 2,200,000 Facilities Relocations / Rehabilitations 325,000 SNRC Water Recycling Plant 675,000 Total Project Costs $6,780,000 Funded by Current Operating Revenue $4,287,000 Funded by Prior Encumbrances / Reserves 2,493,000 Total Funding $ 6,780,000 12 EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT CAPITAL BUDGET FUNDING SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Capital Outlay $ 480,000 $ 131,000 $ 611,000 Capital Improvement Program 5,365,000 1,415,000 6,780,000 Total Expenditures 5,845,000 1,546,000 7,391,000 Operating Revenue 4,105,000 793,000 4,898,000 Reserves -478,000 478,000 Developer Fees 500,000 -500,000 Prior Year Encumbrances 1,240,000 275,000 1,515,000 Total Sources $ 5,845,000 $ 1,546,000 $ 7,391,000 13 EAST VALLEY WATER DISTRICT PROPOSED GOALS & OBJECTIVES FISCAL YEAR 2017-18 AUTHORIZED POSITIONS EAST VALLEY WATER DISTRICT AUTHORIZED POSITIONS 15 •Total Authorized Full Time Positions: 69 −Part Time Temporary Positions: 4 •Requested Positions −Environmental Compliance Officer in Lieu of Assistant General Manager Bar chart does not include part time temporary positions. Program-Based Budgeting Increases Accountability and Transparency EAST VALLEY WATER DISTRICTEAST VALLEY WATER DISTRICT DISCUSSION FISCAL YEAR 2017-18 HIGHLAND, CALIFORNIAHIGHLAND, CALIFORNIA BUDGET EVWD IScommitted TO A TRANSPARENT OPERATION AND WELL INFORMED.Keeping its Customers 1EAST VALLEY WATER DISTRICT TRANSMITTAL LETTER LEADERSHIP | PARTNERSHIP | STEWARDSHIP Insert transmittal letter here upon adoption of FY 2017-18 Budget. FISCAL YEAR BUDGET 2017-20182 THIS PAGE IS LEFT BLANK INTENTIONALLY 3EAST VALLEY WATER DISTRICT Annual financial plan, policy document and operations guide for transparent communication. INTRODUCTION Annual financial plan, policy document and operations guide for transparent communication. Budget Guide The budget document is the District’s annual financial plan prepared by District Management and approved by the Governing Board. The financial plan serves as a policy document, operations guide for programs, and as means of transparent communication. The intended audience of the budget document is citizens, local businesses, creditors, governmental agencies, and other stakeholders. BUDGET DOCUMENT SECTIONS The budget document consists of 8 sections including: Transmittal Letter This section includes the District Officials, General Manager/CEO’s Budget Transmittal Letter, Strategic Goals and Strategies, Short-Term Organization- Wide Factors, and Priorities and Issues. Introduction The Introduction section includes the Budget Guide, Statistical/Supplemental Information, Organizational Structure, and District Vision. Financial Summary This section presents an in-depth District-Wide overview of the Fiscal Year 2017-18 Budget. Consolidated Financial Schedules This section is a comprehensive summary of the District’s Operating Budget. Program Summaries This section provides comprehensive information for each functional program within the District including their operational budget. The Fiscal Year 2017-18 Budget is organized into the following summary programs: FISCAL YEAR BUDGET 2017-20184 DISTINGUISHED BUDGET AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to East Valley Water District, California for its annual budget for the fiscal year beginning July 1, 2016. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance and Accounting • Information Technology • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance Each program section includes: • Function: This section includes a basic description of the responsibilities of each program. • Goals & Objectives: This section identifies specific goals and objectives for Fiscal Year 2016-17. • Program Personnel: This section is the authorized personnel allocated to each program with a program organization chart. • Accomplishments: This section includes highlights from Fiscal Year 2015-16. • Significant Changes: This section identifies causes of significant changes to program funding. • Levels of Service: This section links key performance indicators to the District’s organizational endeavors. • Key Performance Indicators: These tables present measures that help the District define and evaluate a program’s performance. • Program Budget Detail: This section is a breakdown of the program expenditures by category or line item. FISCAL YEAR BUDGET 2017-20184 DISTINGUISHED BUDGET AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to East Valley Water District, California for its annual budget for the fiscal year beginning July 1, 2016. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 5EAST VALLEY WATER DISTRICT Capital Budget This section presents the Capital Outlay expenditures and Capital Improvement Projects for the Fiscal Year 2016-17 Budget. Glossary This section provides definitions for general terms and the Chart of Accounts used throughout the budget document. In Memoriam This section honors past employees and their years of service to the East Valley Water District community. BUDGET FINANCIAL INFORMATION East Valley Water District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE FY 2015-16 Actual Actual financial information for Fiscal Year 2014-15 as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2016-17 Budget The FY 2015-16 Budget was adopted by the Governing Board on June 28, 2017 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2016-17 Projected The FY 2015-16 Projected column reflects the FY 2015-16 Budget in addition to any budget amendments approved by the Governing Board during the fiscal year. The FY 2015-16 Projected column is also adjusted to reflect management’s estimate of what revenues and expenditures will be at the end of the fiscal year. FY 2017-18 Proposed This column initially reflects the FY 2016-17 Proposed Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY 2016-17 Budget, the information in the FY 2016-17 column changes, if necessary, to reflect the Board’s actions. Amount Changed / % Change These columns provide the amount changed/ percent change from the previous year’s budget to the newly proposed budget. FISCAL YEAR BUDGET 2017-20186 Statistical/Supplemental Information EVWD provides water and wastewater services to residents within its 30.1 square mile area to 102,208 people within the cities of Highland and San Bernardino, portions of unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. The District was formed through a local election of mostly citrus grove operators, to have water service provided by a public agency. EVWD is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in the County of San Bernardino. §¨¦210 §¨¦210 §¨¦210 P L U N G E C R E E K Cook Cree k Oak Creek SAND CREEK COOK C R E E K P L U N GECREEK SAND CREEK S A N T A A N A R I V E R WARM CREEK T W I N CREEK ELD ERCREEK B L E D SOECREEK MILL CREEK C I T Y C R E E K CITY C R E E K S A NTAANA RIVER S A N T A AN A RIV ER TWIN CREEK HIGHLAND SAN BERNARDINO SEVEN OAKS DAM 74%Bunker Hill Basin(Groundwater) 21%Santa Ana River(Surface Water) 5%Imported fromNorthern California(Surface Water) WATER SOURCES With a service area just over 30 square-miles, the District has three sources for water, the Santa Ana River, the Bunker Hill Groundwater Basin, and the State Water Project. The Santa Ana River starts with natural springs and snow melt high in the San Bernardino Mountains. Groundwater is drawn from the Bunker Hill Basin, a natural underground storage area made up of soil, sand, and gravel. A small portion of the District’s water is imported from Northern California through the State Water Project. EVWD has access to this water through Valley District. 21%Santa Ana River(Surface Water) 74%Bunker Hill Basin(Groundwater) 7EAST VALLEY WATER DISTRICT WASTEWATER COLLECTION & TREATMENT The District is responsible for the collection and conveyance of wastewater within the service area. Currently, all wastewater is sent to the San Bernardino Municipal Water Department facilities, where it is treated in accordance with a Joint Powers Agreement. In order to create a new source of supply, Valley District, in cooperation with EVWD, is proposing to construct the Sterling Natural Resource Center facility in the City of Highland that will treat up to 10 million gallons of wastewater daily and recharge it into the Bunker Hill groundwater basin, where hundreds of millions of gallons of water can be stored for use in dry years. The proposed project would provide the region with the opportunity to produce a new supply of recycled water for beneficial reuse higher in the Santa Ana River watershed. This project could also provide an opportunity for potential new and/or enhanced riparian and aquatic habitats in City Creek. POPULATION GROWTH Population growth projections vary within East Valley Water District’s service area due a number of proposed developments with unspecified timing for completion. Land use agencies have incorporated approximately 5,000 new housing and business units within General Plan documents. Average Household Income WEATHER The weather in Highland and San Bernardino varies throughout the year. During the summer, temperatures can reach 115° F and drop as low as 40° F during the winter. This area typically averages 18 inches of precipitation annually, mostly during the months of January through March. GOVERNMENT East Valley Water District is a California Special District established in 1954. The District is governed by a five member Governing Board elected by voters at-large to staggered four year terms. The Governing Board represents the public’s interest as policy makers with regards to rate for service, policies, ordinances, and budget adoption. Appointed by the Governing Board, the General Manager/CEO is responsible for overseeing daily operations and managing staff resources. East Valley Water District is a rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code. EDUCATION Residents within East Valley Water District’s service area have access to award winning K-12 schools through the Redlands Unified School District and San Bernardino City Unified School District (SBCUSD). Local colleges and universities include California State University, San Bernardino, the University of California at Riverside, the University of Redlands, and Loma Linda University. Community college locations include Crafton Hills College, Riverside Community College, and San Bernardino Valley Community College. HOSPITAL & MEDICAL FACILITIES Hospital and medical facilities located in or near the East Valley Water District service area include Arrowhead Regional Medical Center, Loma Linda University Medical Center, Kaiser Foundation Hospital, Kindred Hospital Rancho, Redlands Community Hospital, Community Hospital of San Bernardino, J. Pettis Veteran’s Administration Hospital, and St. Bernardine Medical Center. Additionally there are a number of urgent care and outpatient facilities located throughout the region. $96,343City of Highland $56,463City ofSanBernardino $73,901County ofSanBernardino FISCAL YEAR BUDGET 2017-20188 TRANSPORTATION Public transportation is available within the East Valley Water District service area through OmniTrans. With a variety of routes, OmniTrans provides busing services throughout the San Bernardino Valley, including Cities of Highland and San Bernardino. Community members have access to the Metrolink commuter rail service, which provides long distance transportation to commuters from the San Bernardino area to major center of employment including Los Angeles and Orange County. Within the District’s service area there is transportation access to Interstates 215, 210, 15, and 10; and Highways 30, 60, 91 and 330. District Spotlight PUBLIC SAFETY East Valley Water District serves members of the community within the cities of Highland and San Bernardino, unincorporated County of San Bernardino and San Manuel Band of Mission Indians. Within these communities law enforcement is provided by the San Bernardino County Sheriff’s Department and the City of San Bernardino Police Department. Fire protection services are provided by the California Department of Forestry and Fire and Protection (Cal Fire), San Bernardino County Fire Department, and the San Manuel Fire Department. MAJOR EMPLOYERS Major employment industries within the cities of Highland and San Bernardino include schools, mental health services, hospitals, police departments, casinos, state government, and real estate. 214 Miles of Sewer Main 293 Miles of Water Distribution The District serves a population of 102,208. 30.1 Square Mile Service Area Fire Hydrants Flushed 500 23,000 Water Meters Read Monthly Leaks Repaired 261 1,396 Valves Exercised 15,000,000 Gallons of Water Delivered Daily 27,600,000 Gallons of Potable Water Storage 3,300 Water Samples Collected 17Ground Water Wells 6,000,000 Gallons of Sewage Conveyed Daily 1954Established Water Maintenance Wastewater Maintenance Facilities Maintenance Water Treatment Water Quality Water Production Fleet Maintenance Customer Service Conservation Ratepayers Governing Board General Manager/CEO Chief Financial Officer Legal Counsel Human Resources Public Affairs Engineering Finance Information Technology General Administration Director of Engineering & Operations OP E R A T I O N S PERSON/POSITION PROGRAM FTE: FULL TIME EMPLOYEES EO: ELECTED OFFICIALS FTE: 2 Meter Services FTE: 4 FTE: 2 FTE: 6 FTE: 12 FTE: 4 FTE: 1 FTE: 2 FTE: 2 FTE: 2 FTE: 2.5 FTE: 1.5 FTE: 3 FTE: 6 FTE: 7 FTE: 7 Operations Manager EO: 5 9EAST VALLEY WATER DISTRICT Water Maintenance Wastewater Maintenance Facilities Maintenance Water Treatment Water Quality Water Production Fleet Maintenance Customer Service Conservation Ratepayers Governing Board General Manager/CEO Chief Financial Officer Legal Counsel Human Resources Public Affairs Engineering Finance Information Technology General Administration Director of Engineering & Operations OP E R A T I O N S PERSON/POSITION PROGRAM FTE: FULL TIME EMPLOYEES EO: ELECTED OFFICIALS FTE: 2 Meter Services FTE: 4 FTE: 2 FTE: 6 FTE: 12 FTE: 4 FTE: 1 FTE: 2 FTE: 2 FTE: 2 FTE: 2.5 FTE: 1.5 FTE: 3 FTE: 6 FTE: 7 FTE: 7 Operations Manager EO: 5 organizational structure Presented below is an overview of the District’s organizational structure. 9EAST VALLEY WATER DISTRICT FISCAL YEAR BUDGET 2017-201810 DISTRICT VISION In April 2015, the Governing Board adopted a new District Vision and Core Values to replace the existing Mission Statement. Additionally, the District adopted ambitious Agency Ideals and Organizational Endeavors to further enhance the effort set forth in the 2012 Strategic Initiatives. East Valley Water District is a performance based agency. In order to ensure consistent decision-making throughout the organization, the Governing Board adopted the updated District Vision. By setting clear expectations, all staff members are encouraged to be active participants in operations while looking for opportunities to make a positive impact on the community. ENHANCE ANDpreserve THE QUALITY OF LIFE FOR OUR COMMUNITY THROUGH INNOVATIVE LEADERSHIP& PUBLIC SERVICE LEADERSHIP Motivating a group of people to act towards achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. core values LEADERSHIP Motivating a group of people to act towards achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. core values 11EAST VALLEY WATER DISTRICT AGENCY IDEALS & ORGANIZATIONAL ENDEAVORS I. Encourage Innovative Investments to Promote Sustainable Benefits A. Develop Projects and Programs to Ensure Safe and Reliable Services B. Manage and Identify Methods to Conserve Natural Resources C. Enhance Emergency Preparedness Programs D. Dedicate Effort Toward System Maintenance and Modernization E. Actively Seek Alternative Supply Resources II. Maintain an Environment Committed to Elevated Public Service A. Strive To Provide World Class Customer Relations B. Promote a Positive Organizational Culture C. Identify Strategies to Attract and Retain a High Quality Workforce D. Maximize Staff and Governing Board Capabilities Through Ongoing Professional Development E. Practice Transparent and Accountable Fiscal Management III. Demonstrate Visionary Leadership to Enhance District Identity A. Promote Community Involvement and Educational Opportunities B. Strengthen Regional, State and National Partnerships C. Utilize Innovative Communication Methods D. Respect and Preserve Regional Heritage E. Develop a Proactive Legislative Presence IV. Fully Understand Challenges to Cultivate Effective Solutions A. Support Ongoing Business Process Improvement B. Encourage Performance Based Results Through Staff Empowerment C. Pursue Alternative Funding Sources D. Embrace an Environment of Active Learning and Knowledge Sharing E. Conduct Post Implementation Evaluations and Make Improvements as Necessarycore valuescore values FISCAL YEAR BUDGET 2017-201812 THIS PAGE IS LEFT BLANK INTENTIONALLY 13EAST VALLEY WATER DISTRICT An in-depth District-wide overview of the FY 2017-18 budget. FINANCIAL SUMMARY Financial Policies The East Valley Water District financial management policies provide a basic framework for the overall fiscal management of the District. The policies represent a foundation for addressing changing circumstances and conditions, and to assist in the decision-making process. Financial policies represent guidelines for evaluating both current activities and proposals for future programs. They also reflect long-standing principles and practices, which have enabled the District to maintain its financial stability. Policies are reviewed annually to ensure the guidelines represent a realistic, current framework for policy decisions. BALANCED BUDGET East Valley Water District shall prepare an itemized budget for each fund and each program within those funds. The budgets will be balanced, with current revenues and use of reserves equal to or greater than current expenditures/expenses using the following strategies: improve productivity; raise fees to offset costs of providing services and/or use reserves if available. INVESTMENT POLICY The District’s Investment Policy applies to the investment of short-term operating funds of the District in excess of those funds required to meet current District expenditures. District policy requires adherence to California Government Code sections 5921 and 53601 regarding allowable investments. The policy also includes guidelines on Pooling of Funds, Safety, Liquidity, Yield, Prudence, Ethical Standards, Risk, Diversification, and Reporting. RESERVE POLICY The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs. To that end, the District has adopted a Designated Funds (Reserve) Policy as part of prudent financial planning and to ensure sufficient An in-depth District-wide overview of the FY 2017-18 budget. FISCAL YEAR BUDGET 2017-201814 funding for current and future needs. The Designated Funds Policy has established the following reserves and reserve target levels: • Operating Reserves – maintain 90 days of District’s budgeted total operating expenses; • Rate Stabilization Reserves – maintain 45 days of District’s budgeted total operating expenses; • Capital Replacement Reserves – minimum of 100 percent of depreciation expense for the preceding year; • Emergency Reserves – 2 percent of the total value of Plant and Equipment. DEBT POLICY The District has adopted a policy regarding the utilization of debt. Standards established in this policy require: • An equitable allocation of capital costs/charges between current and future system users; • Minimum rate volatility. In addition, the District confines long-term borrowing to capital improvements for projects that cannot be financed from current revenues. When the District finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the estimated useful life of the asset. The District maintains good communication with bond rating agencies regarding financial condition and will follow a policy of full disclosure on every financial report. The District has no legal debt limits. Budget Process The budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. The purpose of this budget document is to communicate the District’s financial priorities with citizens, local businesses, creditors, rating agencies, other local agencies and stakeholders, and District staff. The Fiscal Year 2017-18 Budget represents guidelines established to address the District’s short-term and long-term goals and objectives. This document also demonstrates the District’s ability to use financial resources for completing critical capital projects for current and future customers as well as the District’s commitment to meet its financial obligations. Staff is confident that the financial framework outlined in the FY 2017-18 Budget will allow the District to deliver reliable, high-quality water and wastewater services to its customers in a prudent and sustainable manner. Each year, administrative and operational program managers establish goals and objectives in support of the District’s ideals and endeavors that, upon adoption by the Governing Board, provide clear direction to staff regarding District-wide priorities. Progress is measured throughout the fiscal year and reported to the Governing Board on a quarterly basis. Moreover, in developing the budget, staff utilized the District Vision for prioritizing District resources for operational and capital activities. STAKEHOLDER INPUT The District has established a Community Advisory Commission (CAC) which meets regularly, at publicly noticed meetings, to discuss significant affairs of the District, including development of the annual budget. Members of the CAC are civic minded community leaders who donate their time to provide input to staff on agenda items. The District Board also conducts a series of public workshops to discuss important milestones in the annual budget development. Public comment is welcomed and encouraged at these workshops. DISTRICT VISION In an effort to ensure consistent purpose, East Valley Water District has adopted a comprehensive statement that serves as a guide for the decision- making process throughout the organization. DEVELOP PROGRAM GOALS AND OBJECTIVES Each program manager is tasked with developing achievable and measurable goals and objectives 15EAST VALLEY WATER DISTRICT to be implemented in a single fiscal year. This endeavor clearly identifies the planned efforts for the given period. ESTABLISH KEY PERFORMANCE INDICATORS & ESTIMATE COSTS In order to assess the organization’s productivity and effectiveness, unique key performance indicators are utilized as a quantitative measure. Cost estimates reflect the anticipated expenses for accomplishing each program’s day-to-day operational tasks, special projects and overall program goals. ADOPT BUDGET Once the budget document has been prepared, including revenue and expense projects, the East Valley Water District Governing Board adopts a final budget prior to June 30 of each year. This final document is available for review by the public. PROGRAM MONITORING AND BUDGET ADJUSTMENTS In January of each year, District management meets to analyze revenues and spending to determine whether realized revenue has exceeded revenue projections to the extent that additional program services or capital projects can be proposed, and to determine whether transfers between budget line items are necessary to ensure that budget limitations are not exceeded. Requests for budget adjustments are submitted by program managers to Executive Management for review, who then forward the requested adjustments to Finance for incorporation into proposed budget amendments to be presented to the Board of Directors at a Mid-Year Budget Review in February. When possible, adjustments have no net effect on the original budget balance unless additional revenue is available. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, a recommendation to defer capital projects or draw on reserves is usually required to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year Budget Review. District Vision Adopt Budget Develop Program Goals & Objectives Monitor Programs & Adjust as Necessary Establish Performance Indicators & Estimate Costs STAKEHOLDER INPUT THROUGHOUT PROCESS FISCAL YEAR BUDGET 2017-201816 CURRENT AND PROPOSED BUDGET CYCLE CALENDAR Date Activity June 28, 2017 FY 2017-18 Budget Adoption June 28, 2017 FY 2017-18 Budget Adoption October 25, 2017 FY 2017-18 1st Quarter Budget Review at Public Board Meeting January 25, 2018 Budget Kick-Off Meeting with Program Managers February 12, 2018 Dept Goal Concepts Due to Dept Admins for General Manager/CEO February 14, 2018 FY 2017-18 2nd Quarter / Mid-Year Budget Review at Public Board Meeting March 5, 2018 FY 2018-19 Capital Outlay and Capital Improvement Program Planning Meeting March 15, 2018 FY 2018-19 All Capital Requests Due to Finance March 29, 2018 FY 2018-19 New Position Requests, Program Budget Requests and Goals & Objectives Due to Finance April 2-5, 2018 FY 2018-19 Review Proposed Goals & Objectives with Program Managers & General Manager/CEO April 18, 2018 FY 2018-19 Proposed Goals & Objectives Workshop at Public Board Meeting April 25, 2018 FY 2017-18 3rd Quarter Budget Review at Public Board Meeting May 16, 2018 FY 2018-19 Revenue Projection Workshop at Public Board Meeting June 6, 2018 FY 2018-19 Budget Workshop at Public Board Meeting June 27, 2018 FY 2018-19 Budget Adoption at Public Board Meeting fi s c a l y e a r 201 7 - 1 8 FISCAL YEAR BUDGET 2017-201816 17EAST VALLEY WATER DISTRICT Basis of Budgeting The District’s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds. The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. However, there are exceptions where the accrual basis is not conducive to effective presentation of the District’s budget, in which case, GAAP is not followed. Those exceptions are as follows: • Compensated absence liabilities that are expected to be liquidated with current expendable financial resources are accrued as earned by employees (GAAP standard) as opposed to being expended when paid (budget procedure). • Principal payments on Long Term Debt are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis. • Capital Outlay are capitalized on a GAAP basis, however, on a Budget basis, they are treated as expenditures. • Depreciation expense is recorded on a GAAP basis but is not contemplated on the Budget basis. • Interest expenditures are capitalized during construction on a GAAP basis, but are reported as an expense on a Budget basis. • Pension expense is budgeted based on employer contribution rates assigned by CalPERS. For financial statement reporting, pension expense is recorded based on the change in the net pension liability in accordance with GASB 68. Fund Structure GAAP requires that East Valley Water District account for its activities as a single, governmental enterprise fund. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and, in the case of East Valley Water District, are entirely financed by revenues derived from user charges. WASTEWATERFUND WATER FUND FUND STRUCTURE Wastewater Service Charges Interest Income and Other Income Water Sales and Service Charges Wastewater Capital Expenditures and Debt Service District Operations and Maintenance Programs Water Capital Expenditures and Debt Service FISCAL YEAR BUDGET 2017-201818 As a California special district, East Valley Water District engages in two separate and distinct business-type activities, including: • Water production, treatment and distribution, and the construction, repair and replacement of related infrastructure, and • Wastewater collection from domestic and industrial customers, and the construction, repair and replacement of conveyance facilities Accordingly, the District’s budget is organized on the basis of two enterprise activities or sub-funds - water and wastewater (hereafter referred to as funds). Each fund is considered a separate budgetary and accounting entity, reported on a full accrual accounting basis with the exceptions noted in the previous section - Basis of Budgeting. Each fund is a separate fiscal entity with its own self balancing set of accounts, and rates and budgets are adopted for each to support the associated operating and capital costs. Each fund records cash and financial resources, together with all related liabilities and residual equity balances. Operations and maintenance programs are supported by the financial resources of each fund in accordance with the allocations presented later in the following section. 19EAST VALLEY WATER DISTRICT Budget Summary The budget for fiscal year 2017-18 is balanced, and reflects East Valley Water District’s commitment to allocating anticipated resources to meeting the expectations of District ratepayers, creditors, and other stakeholders. The District projects that it will receive $36,624,000 in revenue during 2017-18, and has developed a budget plan to allocate $26,994,000 toward funding of program operations, $4,315,000 toward the amortization of outstanding debt, and $5,651,000 toward capital asset improvement and replacement. Program Water Fund Wastewater Fund Total 1000 Governing Board $ 160,300 $ 68,700 $ 229,000 2000 General Administration 840,700 360,300 1,201,000 2100 Human Resources/Risk Management 591,500 253,500 845,000 2200 Public Affairs 414,000 414,000 828,000 2300 Conservation 575,000 - 575,000 3000 Finance 827,700 354,300 1,182,000 3200 Information Technology 674,100 288,900 963,000 3300 Customer Service 1,332,600 416,400 1,749,000 3400 Meter Services 397,000 - 397,000 4000 Engineering 1,068,900 458,100 1,527,000 5000 Water Production Administration 469,000 - 469,000 5000-51 Source of Supply 2,654,000 - 2,654,000 5000-52 Pumps & Boosters 726,000 - 726,000 5000-54 Transmission & Distribution 223,000 - 223,000 5100 Water Treatment 890,000 - 890,000 5200 Water Quality 410,000 - 410,000 6000 Maintenance Administration 198,000 22,000 220,000 6100 Water Maintenance 2,021,000 - 2,021,000 6200 Wastewater Maintenance - 8,593,000 8,593,000 7000 Facilities Maintenance 585,800 190,200 776,000 7100 Fleet Maintenance 464,400 51,600 516,000 TOTAL $ 15,523,000 $ 11,471,000 $ 26,994,000 Fund/Program Relationship Operating expenses incurred by the District’s programs are allocated to the water and wastewater funds based on the assumed benefit of each service to each fund. The Benefit Assessment entailed the evaluation of each program and the services provided through activity based costing. With the implementation of water budget based rates, more costs were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates. The table below illustrates the Fund/Program relationship for the current fiscal year. Fund/Program Relationship FISCAL YEAR BUDGET 2017-201820 This table presents a summary of revenue by type, and expenditures by cost category, and is followed by a discussion of revenue and expenditures. Water Fund Wastewater Fund FY 2017-18 Total REVENUE/SOURCES Water Sales / Wastewater Collection Charges 14,500,000 4,545,000 19,045,000 Wastewater Treatment Charges - 7,900,000 7,900,000 Meter Fees 8,845,000 - 8,845,000 Other Operating Charges 577,000 110,000 687,000 Investment Income 75,000 22,000 97,000 Other Income 50,000 - 50,000 TOTAL REVENUE/SOURCES 24,047,000 12,577,000 36,624,000 OPERATING EXPENSES Employment Expenses 7,409,600 2,132,400 9,542,000 Water Costs 801,000 - 801,000 Contracted Wastewater Treatment - 7,900,000 7,900,000 Power Costs 1,700,000 - 1,700,000 Materials 920,200 121,800 1,042,000 Contract Services 3,621,100 964,900 4,586,000 Other Operating Expenses 808,800 248,200 1,057,000 Professional Development 262,300 103,700 366,000 TOTAL OPERATING EXP. 15,523,000 11,471,000 26,994,000 OTHER USES Debt Service 4,002,000 313,000 4,315,000 Capital Outlay 480,000 131,000 611,000 Capital Improvement Program 3,625,000 1,140,000 4,765,000 TOTAL OTHER USES 8,107,000 1,584,000 9,691,000 TOTAL OPERATING EXPENSES/OTHER USES 23,630,000 13,055,000 36,685,000 TOTAL NET SURPLUS/(DEFICIT) 417,000 (478,000) (61,000) 21EAST VALLEY WATER DISTRICT Revenue Summary Revenue projections are key to determining the amount of financial resources available to support District programs and other obligations, therefore, projections are developed early in the budget process and then presented to the District’s Board of Directors in early May. East Valley Water District receives 97 percent of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and adjusted as necessary to cover the costs of providing services to ratepayers. The District derives its authority for setting rates from §31000 of the California Water Code, and rate adjustments are adopted at public hearings conducted in accordance with requirements established by California Propositions 26 and/or 218. The District has five major revenue categories based on rates as shown in the pie chart. REVENUE HISTORY AND FORECAST (IN MILLIONS) 40%Water Sales 24%Meter Charges 12%WastewaterCollection 22%Wastewater Treatment 2%Other Charges 40%Water Sales 24%Meter Charges 12%WastewaterCollection 22%Wastewater Treatment 18.4 20.0 22.7 23.3 24.2 24.8 11.4 11.5 12.1 12.4 12.6 12.5 5.0 10.0 15.0 20.0 25.0 30.0 2014-15 2015-16 2016-17 Estimate 2017-18 Projection 2018-19 Projection 2019-20 Projection Water Revenue Wastewater Revenue FISCAL YEAR BUDGET 2017-201822 Water and wastewater rate revenues are highly reliant on new development and rate increases for sustained growth. Water sales are also reliant on consumer demand, which increases or decreases based on weather and water rates. The multi-year drought in California forced the District, and like agencies, to promote conservation and reduce water usage by a statewide average of 25 percent, causing a sharp drop in revenue. At the same time, development has been nearly non-existent for several years. Small ‘infill’ development is proceeding, but large developments are being stalled by community concerns about water supply, and traffic congestion. Accordingly, there is no significant number of new customer accounts that have been built into projections for the 2017-18 fiscal year. For projections beyond 2017-18, revenue growth of 2 percent has been projected to account for modest rate increases and annual development of 20 equivalent dwelling units. A more detailed description of the District is major revenue sources, and related trends, is included in the following sections. In addition, the Water Fund and Wastewater Fund sections of this document include a detailed discussion of the rates used to calculate 2017-18 revenue projections. WATER SALES The District produces potable water for sale to four customer classes; single family residential, multi- family residential, commercial and irrigation. All customers are billed on a monthly cycle based on the amount of water usage, which is metered and measured in hundred cubic feet (HCF) where 1 HCF is equal to 748 gallons. Customer Consumption in Hundred Cubic Feet In July 2015, the District began billing water usage in three ascending ‘Water Budget’ rate tiers. Therefore, as customer water usage increases, water becomes more expensive as usage exceeds tier threshholds. Water Budget tiers are unique in that tier width, or the number of HCF billed at each tier, is determined based on the individual customer’s characteristics. For single and multi-family customers, the tier 1 width is determined based on the number of occupants in a dwelling, and is intended to supply the customer with sufficient water for indoor health and safety needs. Tier 2 width is based on a customer’s landscaped square footage, and the measured evapotranspiration, or the rate at which plants and soil lost moisture during the month being billed. The tier 2 budget is intended to supply sufficient water for efficient irrigation of the landscaped square footage. Tier 3 is billed for water use in excess of the Tier 1 and 2 budgets and is deemed to be inefficient use. Irrigation meter customers receive only a Tier 2 budget as described above, with usage in excess of the budget billed at the Tier 3 rate. Finally, commercial customers, having neither occupants or landscaped area associated with their domestic meter, receive Tier 1 and 2 water budgets based on the business’ historical usage, with excess usage billed at the Tier 3 rate. The table below summarizes water sales volume (HCF) by billing tier, including very conservative projections for fiscal year 2017-18. The tier rates shown include 6.5 percent adjustment that will become effective for July 1, 2017. 2014-15 Actual 2015-16 Actual 2016-17 Estimated 2017-18 Projected Single Tier 7,630,033 Tier 1 3,640,752 3,590,453 3,552,500 Tier 2 2,164,931 2,326,280 2,251,500 Tier 3 816,714 886,236 861,600 TOTAL 7,630,033 6,622,397 6,802,968 6,665,600 23EAST VALLEY WATER DISTRICT Based on the projection of water sales in volume, the District has projected water sales of $14.5 million. The following graph shows water sales trends for four years and the current year projection. Water Sales Trends $2M $4M $6M $8M $10M $12M $14M $16M 2013-14 2014-15 2015-16 2016-17 Estimated 2017-18 Projected Flat Rate Tier 1 Tier 2 Tier 3 $15,351,609 $13,505,159 $11,927,523 $13,947,000 $14,500,000 FISCAL YEAR BUDGET 2017-201824 WATER SYSTEM CHARGES Also referred to as Meter Charges, these charges are fixed monthly charges assessed to customers based on the size of the meter serving their property. Along with the 2015 rate restructuring discussed above, meter charges were increased significantly (up to 70 percent) to shift some of the burden for revenue stability from unpredictable water sales to these more reliable fixed charges. A second rate adjustment of 10 percent became effective July 1, 2016, however, no rate adjustment is scheduled for the 2017-18 fiscal year. Meter charges revenue is projected to decrease by approximately $42,000 in 2017-18 due to a Board action in January 2017 to end the practice of charging approximately 1,100 residential customers with separate fire service lines, an additional small monthly charge for the second meter associated with the fire service. Meter Charges $1M $2M $3M $4M $5M $6M $7M $8M $9M 2013-14 2014-15 2015-16 2016-17 Estimated 2017-18 Projected $4,704,036 $4,874,581 $8,063,077 $8,887,531 $8,845,000 25EAST VALLEY WATER DISTRICT WASTEWATER COLLECTION CHARGES This charge is assessed to District customers to fund the maintenance and replacement of wastewater collection pipelines, make wastewater debt service payments, and fund program services associated with the wastewater fund. The rate structure includes a fixed monthly charge of $15.36 for single family residences, and a combination of fixed and volumetric charges for commercial and multi-family customers — currently $3.90 and $.55 per HCF of water usage, respectively. Wastewater collection rates were last adjusted in 2012 so wastewater collection revenue has remained relatively flat over the past five years, fluctuating slightly with changes in water usage by commercial customers. A noticeable change in 2015-16 was due to customer response to tiered water rates, and significant conservation efforts in response to the severe drought continuing into its fourth year. Wastewater Collection Charges $500K $1M $1.5M $2M $2.5M $3M $3.5M $4M $4.5M 2013-14 2014-15 2015-16 2016-17 Estimate 2017-18 Projection Single Family Residential Multi-Family / Commercial $4,464,701 $4,559,667 $4,549,651 $4,545,000 $4,259,792 FISCAL YEAR BUDGET 2017-201826 WASTEWATER TREATMENT CHARGES Rates for these charges are established by the City of San Bernardino Municipal Water Department, which is currently contracted to treat all wastewater generated by District customers. The District bills customers within its service area at the established rates, receives customer payments, and then remits these revenues collected to the City of San Bernardino. Wastewater treatment rates, established by the City of San Bernardino, have increased an average of 3.5 percent over the last six years, with an additional increase of 3.4 percent to become effective July 1, 2017. Wastewater treatment rates for fiscal year 2017-18 include a fixed monthly charge of $21.55 for single family residential customers, and a combination of fixed and volumetric charges for commercial and multi-family customers – currently $3.52 plus a per HCF rate ranging from $1.29/HCF to $3.18/HCF depending on the type of business run by the commercial customer. Wastewater Treatment Charges $6.4M $6.6M $6.8M $7M $7.2M $7.4M $7.6M $7.8M 2013-14 2014-15 2015-16 2016-17 Estimated 2017-18 Projected $7,197,418 $6,907,828 $7,165,655 $7,610,000 $7,900,000 27EAST VALLEY WATER DISTRICT Expenditure Summary The District prepares its annual budget and financial plan based on operating expenses proposed by program managers, scheduled debt service payments, and capital expenditures prioritized in the District’s Capital Improvement Program. Resources required for these expenditures are then appropriated from the District’s Water and Wastewater enterprise funds. OTHER CHARGES These charges are assessed per an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering water and wastewater services. The 2017-18 projection for these charges is $834,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. 25.6%EmploymentServices 15.3%CapitalExpenditures 11.7%Debt Service 21.4%WastewaterTreatment15.4%Materials/ContractServices 2.2%WaterCosts 4.6%Power Costs 1%Professional Development 2.9%OtherOperating 15.3%CapitalExpenditures 25.6%EmploymentServices11.7%Debt Service 15.4%Materials/ContractServices 21.4%WastewaterTreatment $61,500Initiation ofService $97,000InvestmentIncome $120,000MiscellaneousRevenue $140,000ReconnectFees $300,500DisconnectNotice Charge $115,000Delinquent Fees $97,000InvestmentIncome $120,000MiscellaneousRevenue $140,000ReconnectFees $300,500DisconnectNotice Charge $115,000Delinquent Fees FISCAL YEAR BUDGET 2017-201828 EMPLOYMENT EXPENSES Employment expenses include salaries and benefits paid for 69 full time employees and 4 temporary employees. Employees are represented by two in- house bargaining units, or employee partnerships, which have negotiated a three-year Memorandum of Understanding (MOU) regarding wage and benefit adjustments. The new MOU, when formally adopted, will be effective for fiscal years 2017-18 through 2019-20. Salaries include regular wages, overtime and on- call pay, and incentives and differential payments, which are awarded upon attainment of designated certifications. Salaries are projected to increase by approximately 4 percent for 2017-18, which includes a 3 percent cost of living adjustment (COLA) and step increases, subject to annual performance evaluations, for employees who have not reached the top step in their pay range. Benefit programs include a retirement plan with the California Public Employee Retirement System (CalPERS), a cafeteria health insurance plan, and worker’s comp and Medicare insurance. Retirement plan funding requirements are determined through actuarial valuations conducted by CalPERS, which stipulates an employer and employee share. The District pays the employer share, while employees pay 100 percent of their contributions through payroll withholding. The CalPERS Board recently acted to adjust actuarial assumptions related to investment returns, reducing expected returns from 7.75 percent to 7.0 percent over the next five years. The impact of this change in assumptions will be an increase in required contributions for participating agencies of 5 percent to 7 percent annually over the next five years. Healthcare costs are also split between the District and employees as the District pays 90 percent to 95 percent of a designated ‘benchmark’ plan, with employees paying the balance. Premiums for the benchmark plan increased 19 percent for 2017, affecting both District and employee contributions to healthcare costs accordingly. WATER COSTS Water costs include rates, fees and assessments charged by other agencies/companies related to the District’s acquisition of raw source water. Total Water Costs are projected to be $801,000 for fiscal year 2017-18 and includes the following: • Purchased Water – paid to the San Bernardino Valley Municipal Water District to buy State Project water for $126 per acre foot (AF). Very little water has been available from this source during the severe California drought over the past few years, but due to heavy snow and rainfall in the winter of 2017, excess water has been made available. The District has budgeted $500,000 to purchase imported water in 2017-18. • Groundwater Replenishment Assessment– paid to the San Bernardino Valley Water Conservation District for groundwater pumped by District wells from the Bunker Hill Groundwater Basin. The District has projected pumping 13,500 AF at a cost of $12/AF for a total budget of $163,080. • Stockholder Assessment – paid to the North Fork Water Company (NFWC) on Company shares owned. Annual assessments are set to cover the costs of operating NFWC and includes delivery of Santa Ana River surface water, also based on the number of shares owned. The District owns 5,905 shares ($23 per share) and has budgeted $138,000 accordingly. 29EAST VALLEY WATER DISTRICT CONTRACTED WASTEWATER TREATMENT As outlined in the discussion about wastewater treatment charges, the District has budgeted $7,900,000 for the cost for contracted wastewater treatment in fiscal year 2017-18. All charges billed and collected for these services are paid to the City of San Bernardino Municipal Water Department at the end of each month. $200K $400K $600K $800K $1M $1.2M 2013-14 2014-15 2015-16 2016-17 2017-18 Projected Purchased Water Groundwater Surface Water $521,471 $600,855 $471,251 $1,281,143 $801,080 Water Costs FISCAL YEAR BUDGET 2017-201830 POWER COSTS Power costs include the electrical power to extract groundwater, treat imported water, surface water, and groundwater when necessary, and distribute water throughout eight pressure zones within the District. Although rates for electrical power have been increasing, the District has experienced a decrease in annual power costs for two reasons. First, the California drought and customer conservation reduced water consumption and therefore the power required to produce it. Second, energy conservation measures implemented in 2014, including replacement of inefficient pumps and refinement of production schedules to coincide with off-peak power pricing, has allowed the District to become much more efficient in energy consumption. Total power costs are expected to increase by approximately 6 percent in 2017-18 as drought related water quality concerns with imported and surface water may cause the District to produce more groundwater until the quality of other sources has been addressed. Power Costs $500K $1M $1.5M $2M 2013-14 2014-15 2015-16 2016-17 Estimated 2017-18 Projected Wells Boosting Treatment $2,322,793 $2,123,485 $1,648,965 $1,610,000 $1,700,000 31EAST VALLEY WATER DISTRICT MATERIALS AND CONTRACT SERVICES Material costs include chemicals for treatment, small tools and parts for distribution system repairs, small office tools and general office supplies. Materials costs are budgeted to decrease 5 percent in 2017-18 as the prior year budget included a significant earmark for the replacement of street cutting and trenching tools. Contract services are proposed by Program Managers to fund ongoing needs for outside services, and periodic needs for technical expertise to help meet program goals and objectives established for the current year. Contract services includes the following: Significant variances between prior year contract services costs and projections for 2017-18 include: • Public Affairs costs have increased to support the production of informational videos for display on the District’s website • A $500,000 decrease in direct customer rebates for turf removal and other conservation efforts • Funding for a cybersecurity assessment and continued work on data analytics • Prior year water quality costs included a 5-year update to the regional watershed survey • A $100,000 increase in the budget for street repairs necessary after field crews complete a water main repair due to increased permit and asphalt costs. Program Services Description FY 2016-17 FY 2017-18 Governing Board CEO Evaluation $ 11,000 $ 11,000 Administration Legislative, Legal Consultants 337,000 347,000 HR Safety Consultants, Insurance 95,000 89,000 Public Affairs Printing, Emergency Training 97,000 206,000 Conservation Community Events, Demo Garden, Direct Installation of Water Efficient Irrigation Timers 803,000 387,000 Finance Auditing, Banking, Software 230,000 166,000 Information Technology GIS, Data Management, Cybersecurity 322,000 462,000 Customer Service Billing, Payment Cards, Software Support 828,000 841,000 Meter Services Uniforms 8,000 8,000 Engineering Surveying, Engineering, Software, Regional Studies 223,000 354,000 Production SCADA Updates, Inspections, Valve Maintenance 341,000 367,000 Water Treatment Filtration Media Replacement, Software Maintenance 166,000 186,000 Water Quality Lab Fees, Software Maintenance 161,000 120,000 Water Maintenance Leak Detection, Asphalt Repair 334,000 449,000 Wastewater Maintenance Manhole Insect Treatment, Collection Pipeline Spot Repairs 231,000 231,000 Facilities Maintenance Security, Janitorial, Landscaping, Equipment Repairs 390,000 347,000 Fleet Maintenance Large Equipment Repairs 125,000 75,000 TOTAL $ 4,702,000 $ 4,646,000 FISCAL YEAR BUDGET 2017-201832 Outstanding Debt East Valley Water District has total outstanding debt of $52,141,000 as of June 30, 2017. Outstanding debt issues include the following: • 2010 Refunding Revenue Bonds – issued to refund all outstanding long-term debt and to provide $16 million for future capital improvements. Bonds outstanding total $26,150,000, bear interest of 3.9 percent to 5 percent, and are payable out of water and wastewater net revenue. • 2013 Revenue Bonds – issued to finance the construction of a new administration and operations headquarters. Bonds outstanding total $12,085,000, bear interest of 4.25 percent to 5 percent, and are payable out of water and wastewater net revenue. Current payments are interest only, with principal amortization scheduled to begin in fiscal year 2021-22. • DWR Loan – Treatment Plant: borrowed to finance upgrades to treatment technology at the District’s Plant 134. The total loan outstanding is $6,568,167 at zero percent interest, and is payable out of water net revenue. • DWR Loans – Assessment Districts: borrowed to fund consolidation of two failing mutual water companies into District service area. Loans outstanding total $423,196 and bear interest at zero percent. Debt service payments are payable from assessments to property owners within the assessment districts. • U.S. Bank Loan – borrowed to finance construction and implementation of several energy conservation measures. The total loan outstanding is $2,910,551 at an interest rate of 2.3 percent, and is payable out of guaranteed energy cost savings. • SBVMWD Loan – borrowed from San Bernardino Valley Municipal Water District, the region’s State Water Project contractor, to finance construction (in progress) of an imported water turnout and hydro-electric generation facility at the District’s Plant 134. The estimated cost of construction, and resulting loan amount, is $4,000,000, bearing interest at the LAIF apportionment rate, currently .4 percent. Debt service is payable over 10 years out of water net revenue and energy cost savings. Debt service for fiscal year 2017-18 on all outstanding debt is $4,315,000—this amount represents 11.6 percent of the District’s total budget. 2017-18 is the second year of a 5-year period during which annual debt service payments will exceed $4.2 million. This level of debt service does not affect utility services provided to District ratepayers, but does directly impact the number of Capital Projects that can be funded by operating revenues. 33EAST VALLEY WATER DISTRICT A schedule of 2017-18 debt service payments, by issue, is shown in the following schedule: The schedule below presents total debt service on existing debt through maturity. Future DWR Loan The District has completed an application for State Revolving Fund grants and loans to finance the construction of a water recycling center. The estimated loan amount is $126,000,000 with annual debt service of $5,500,000 payable out of wastewater net revenue. This debt service amount is not included in the schedules above. BOND RATINGS Credit risk is the risk that District creditors will suffer financial loss if the District fails to fulfill its obligation to make timely payments to holders of District debt. This risk is measured by the assignment of a rating to the District’s bonds by a nationally recognized credit rating organization. Strong credit ratings provide benefits to District ratepayers in the form of reduced debt service costs. Prudent financial management policies have resulted in a bond rating of AA- from both Standard & Poor’s, and Fitch ratings. Fitch affirmed its rating in April of 2017. The AA- rating is considered a high quality, investment grade rating. WATER FUND WASTEWATER FUND Debt Issue Principal Interest Principal Interest Total 2010 Refunding Revenue Bonds $ 1,340,000 $ 1,133,000 $ 95,000 $ 18,000 $ 2,586,000 2013 Revenue Bonds - 384,000 - 200,000 584,000 DWR Loan-Treatment Plant 254,000 - - - 254,000 DWR Loans - Assessment Districts 20,000 - - - 20,000 US Bank Loan 388,000 68,000 - - 456,000 SBVMWD Loan 400,000 15,000 - - 415,000 TOTAL $ 2,402,000 $ 1,600,000 $ 95,000 $ 218,000 $ 4,315,000 Fiscal Year Principal Interest Total 2018 $ 2,497,000 $ 1,818,000 $ 4,315,000 2019 2,560,000 1,734,000 4,294,000 2020 2,639,000 1,646,000 4,285,000 2021 2,719,000 1,562,000 4,281,000 2022 2,213,000 1,494,000 3,707,000 2023-2027 9,735,000 6,594,000 16,329,000 2028-2032 6,741,000 5,416,000 12,157,000 2033-2037 8,038,000 4,098,000 12,136,000 2038-2042 9,916,000 2,218,000 12,134,000 2043-2045 5,083,000 227,000 5,310,000 TOTAL $ 52,141,000 $ 26,807,000 $ 78,948,000 FISCAL YEAR BUDGET 2017-201834 DEBT POLICY AND COVERAGE The District’s Debt Management Policy states that debt may only be issued to finance capital projects that have been incorporated into the District’s Capital Improvement Program, and that debt will only be used to finance projects if it is the most cost effective means of doing so, and the District’s credit rating will not be negatively impacted. There is no Policy, or statutory limitation on the amount of debt that may be issued by the District, however, bond covenants for the District’s 2010 and 2013 Revenue Bonds require an additional bonds test prior to issuing additional obligations payable from Net Operating Revenue. The Revenue Bond documents, as well as loan agreements with the Department of Water Resources and US Bank, also require that the District maintain a debt coverage ratio equal to 1.2 or 120 percent of annual debt service. The FY 2017-18 proposed operating budget provides the net revenue to debt ratios shown in the following table. Debt Service Coverage Net Revenue in excess of annual debt service (excess coverage) provides funding for the District’s CIP and contributions to Replacement Reserves. Water Fund Wastewater Fund Total REVENUE Sales and Services $ 23,345,000 $ 12,445,000 $ 35,790,000 Other Charges 577,000 110,000 687,000 Interest & Miscellaneous Revenue 125,000 22,000 147,000 TOTAL REVENUES 24,047,000 12,577,000 36,624,000 OPERATING EXPENSES Programs 15,523,000 11,471,000 26,994,000 TOTAL OPERATING EXPENSES 15,523,000 11,471,000 26,994,000 NET REVENUE 8,524,000 1,106,000 9,630,000 Annual Debt Service $ 4,002,000 $ 313,000 $ 4,315,000 Debt Coverage Ratio 2.13 3.53 2.23 35EAST VALLEY WATER DISTRICT Unrestricted Fund Equity (Reserves) EVWD operates two enterprise funds for water and wastewater activities, the District does not have governmental or non-major enterprise funds as part of its operational fund structure. The graph on the following page, illustrates the changes in unrestricted fund equity for the past five years and forecasted balances for 2017-18. Unrestricted Fund Equity WATER FUND EQUITY Fiscal year 2012-13 was the final year of a three-year rate adjustment adopted in June 2010, and as a result, revenue and unrestricted equity increased in 2013-14. In 2014-15 the District implemented Governmental Accounting Standards Board (GASB) statement number 68, whereby unfunded pension liabilities were recorded on the District’s Statement of Net Assets and had an $6.2 million negative impact on fund equity. Also in 2014-15, the District adopted a new tiered rate structure (explained in the Revenue section) to provide revenue stability during California’s severe drought in which strict conservation mandates were imposed by the state. Revenue stability was achieved by the new rates structure, as is evidenced by reserve levels for FY2015-16 through 2017-18. The table on the following page provides beginning equity balances, increases and decreases, and ending equity balances of unrestricted water fund equity for the past five years, and projections for the FY 2017-18 budget year. $7,019,510 $8,178,281 $4,861,232 $5,789,742 $6,032,578 $6,449,578 $11,310,878 $9,858,657 $7,539,722 $1,761,323 $2,029,652 $1,407,652 $2M $4M $6M $8M $10M $12M 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Water Wastewater FISCAL YEAR BUDGET 2017-201836 Unrestricted Equity – Water Fund 2012-13 Actual 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Projected 2017-18 Budgeted Beginning Fund Balance $ 620,365 $ 7,019,510 $ 8,178,281 $ 4,861,232 $ 5,789,742 $ 6,032,578 Revenue 20,402,220 21,020,934 20,072,542 22,358,720 24,192,000 24,047,000 Operating Expenses (14,110,822)(17,670,092)(17,784,263)(20,758,674)(21,826,650)(21,423,000) Non Operating Expenses (1,152,087) (1,887,336) (1,805,275) (1,636,748) (1,664,000) (1,600,000) Add Back: Depreciation 2,636,616 4,531,972 5,003,670 5,710,092 5,700,000 5,900,000 Contribution to Asset Acquisition (268,181) (3,395,215) (1,051,372) (2,873,963) (1,172,826) (4,105,000) Debt Principal Payments (1,108,601) (1,441,492) (1,546,491) (1,870,917) (2,343,000)(2,402,000) Interfund Sale of Land (2,642,688) Prior Period Adjustment - Pensions (6,205,860) ENDING FUND BALANCE $ 7,019,510 $ 8,178,281 $ 4,861,232 $ 5,789,742 $ 6,032,578 $ 6,449,578 WASTEWATER FUND EQUITY The rate adjustment in 2012-13 (mentioned above) also raised revenue for the wastewater fund, but at the same time the District began drawing on reserves to conduct feasibility and environmental studies for a proposed water recycling plant. Reserve spending for preliminary design, land acquisition, and litigation related to the recycling plant continued through 2016-17, with a favorable outcome of the litigation expected early in 2017-18. With the litigation decided, the District expects to finalize low-interest loan funding with the state of California, with which the District can reimburse most of the reserve borrowing that has occurred since 2013-14. Wastewater fund equity was also negatively impacted in 2014-15 by GASB 68 for the amount of $1.75 million. The table on the following page provides beginning equity balances, increases and decreases, and ending equity balances of unrestricted wastewater fund equity for the past five years, and projections for the 2017-18 budget year. 37EAST VALLEY WATER DISTRICT Unrestricted Equity – Wastewater Fund 2012-13 Actual 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Projected 2017-18 Budgeted Beginning Fund Balance $10,665,081 $11,310,878 $9,858,657 $7,539,722 $1,761,323 $2,029,652 Revenue 11,585,430 11,974,164 11,572,011 11,643,042 12,432,000 12,577,000 Operating Expenses (10,748,254) (11,521,084)(11,362,076) (11,244,048)(12,395,048) (12,251,000) Non Operating Expenses (56,071) (231,053) (210,917) (206,692) (202,000) (218,000) Add Back: Depreciation 604,900 797,584 773,283 780,967 781,000 780,000 Contribution to Asset Acquisition (521,815) (2,391,832) (1,255,865) (6,661,668) (2,895,311) (1,415,000) Debt Principal Payments (218,393) (80,000) (85,000) (90,000) (95,000) (95,000) Interfund Sale of Land 2,642,688 Prior Period Adjustment - Pensions (1,750,371) ENDING FUND BALANCE $11,310,878 $9,858,657 $7,539,722 $1,761,323 $2,029,652 $1,407,652 A cost of service analysis for both water and wastewater utility rates will be conducted in 2017-18 to identify rate adjustments needed, if any, to maintain essential utility services, and maintain adequate unrestricted equity (reserve) levels. Long Range Financial Plan The long range financial plan provides a forward looking view of the District’s operating funds, allowing District management and others to evaluate the long term sustainability of the operating budget. It also provides a starting point for future decision making regarding the District’s spending and projected revenues. As a water and wastewater utility, the Districts’ long term planning efforts have always included consideration of the age, condition, and efficiency of infrastructure used to deliver services to District customers, along with compliance with water quality regulations. But in recent years, the drought in California has raised the preservation and sustainability of water supplies, and water quality, as prominent issues in planning for future operations. Based on these identified priorities, the District has developed goals that will have a significant impact on the District’s operating budget over the next few years, including: • Cost recovery through user rates versus development fees • Construction of a water recycling plant (Sterling Natural Resource Center) to end reliance on another agency for wastewater treatment and produce a recycled water supply • Find alternative Water Supply and Promote Conservation • Meet all Water Quality Standards • Replacement of aging pipelines and increased water storage capacity FISCAL YEAR BUDGET 2017-201838 The achievement of these goals is subject to certain assumptions, but will remain a priority as they support the District Vision and Organizational Endeavors. Goal Assumption Link to Organizational Endeavors User rates support reasonable costs related to existing customers; development fees pay for new infrastructure • Water Usage Per capita will not increase due to Conservation efforts • Development will add new customers annually to District service area • Practice Transparent and Accountable Fiscal Management • Pursue Alternative Funding Sources Construct Sterling Natural Resource Center for recycled water supply • A funding agreement, including grants and low interest loan will be secured from the State Revolving Fund • Recycled water produced by the SNRC will be sold to the basin watermaster for groundwater recharge • Manage and Identify Methods to Conserve Natural Resources • Actively Seek Alternative Supply Resources • Pursue Alternative Funding Sources Water supply • State Project Water will be available to purchase for basin recharge • Actively Seek Alternative Supply Resources • Strengthen Regional, State and National Partnerships Upgrade Treatment Processes, Replace Aging Pipelines and Add Storage Capacity • New rate structure will provide revenue stability and adequate funding for needed projects • Develop Projects and Programs to Ensure Safe and Reliable Services • Dedicate Effort Toward System Maintenance and Modernization Rates and Charges As discussed in the previous section, water and wastewater rate revenue is expected to increase over the next five years due to modest building development and rate adjustments. Water rates were adjusted in March 2015 with a three year implementation ending in fiscal year 2017-18, therefore, both water and wastewater rates will be reviewed by an independent financial consultant in fiscal year 2017-18. Any rate adjustments proposed by the consultant will be considered in accordance with requirements under California Propositions 26 and/or 218. • Water Sales are projected to grow $500,000 or 3.5 percent over the next five years due to the estimated addition of 20 new utility accounts annually, combined with 1 percent rate increases. Sales per capita is expected to remain flat as water budget based tiered rates implemented by the District incentivize consumers to use water efficiently. • Meter Charge revenue is expected to grow by $100,000 between FY 2017 and FY 2022 due to the increase in customer accounts mentioned above. • Reclaimed Water Sales will be added as a new revenue stream for the District upon completion of the SNRC in FY 2019. The District anticipates that the SNRC will produce 6,000 acre feet of recycled water which can be sold to the groundwater basin water master for recharge at a price of $350 per acre foot. This will provide additional revenue of $2.1 million annually. 39EAST VALLEY WATER DISTRICT Operating Cost Forecast Operating costs for the District included salaries and benefits, maintenance and operation of the water distribution and wastewater collection systems, contract services, and materials and supplies. Salaries are adjusted in accordance with a memorandum of understanding (MOU) with employees — a new three-year MOU, which will become effective in July 2017, is being negotiated. Salary related assumptions used in preparing expenditure forecasts include: • Three percent Cost of Living Increases for each of the next three years. • Two and a half percent annual step increases, if qualified, until employees reach the top of their salary range. • Performance based incentive payments of up to 5 percent of base salary. An average of 4 percent was used for purposes of forecasting. Retirement plan contributions, which are based on a percentage of salary, are expected to increase 7 percent – 10 percent annually over the next five years as the California Public Employees Retirement System (CalPERS) implements a plan to improve the funding status of the plan overall. Staffing levels are expected to remain constant through the completion of Sterling Natural Resource Center in April of 2019. Additional staff required for operation of this facility is estimated to be 6 full time employees at a cost of $1,200,000 annually in salaries and benefits beginning in fiscal year 2019. In general, contract services and supplies are expected to increase 2 percent with inflation. However, the scheduled completion of the Sterling Natural Resource Center in April 2019 will create a shift in costs from contracted wastewater treatment, to other costs directly related to operating a water recycling plant, such as sludge removal, chemicals, contract services, and materials and supplies. Debt Service Forecast Debt service costs include principal and interest on Revenue Bonds and Loans issued to finance system improvements. Future debt service cost projections include an additional loan from the State Revolving Fund issued to finance the construction of the Sterling Natural Resource Center. The final loan amount will not be determined until the project is complete, however, the additional debt related to this project is expected to increase annual debt service approximately $5.5 million beginning in FY 2020. Revenue Funded Capital Expenditures Forecast Revenue funded capital project spending is projected to average $4.2 million over the next five years. Projects included in the forecast are discussed in the five year Capital Improvement Program section of this budget. FISCAL YEAR BUDGET 2017-201840 Five Year Forecast – Fiscal Years 2018 through 2022 The following financial forecast is presented to provide a general understanding of how long term goals will affect operating revenue and expenditures over the next five years. FORECAST FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 REVENUE Water Sales / Wastewater Collection $ 19,045,000 $ 19,185,000 $ 19,275,000 $ 19,365,000 $ 19,455,000 Wastewater Treatment 7,900,000 8,000,000 8,100,000 8,200,000 8,300,000 Reclaimed Water Sales - 1,000,000 2,100,000 2,100,000 2,100,000 Meter Fees 8,845,000 8,845,000 8,883,000 8,921,000 8,959,000 Other Operating Charges 687,000 687,000 905,000 900,000 895,000 Investment Income 97,000 97,000 125,000 100,000 100,000 Other Income 50,000 50,000 50,000 50,000 50,000 TOTAL REVENUE 36,624,000 37,864,000 39,438,000 39,636,000 39,859,000 EXPENDITURES Labor & Benefits 9,474,000 10,645,000 11,443,000 11,887,000 12,351,000 Water Costs 801,000 400,000 400,000 400,000 400,000 Contracted Wastewater Treatment 7,900,000 5,170,000 - - - Power Costs 1,700,000 2,100,000 2,425,000 2,446,750 2,469,153 Contract Services 4,654,000 5,285,000 5,920,000 5,991,000 6,063,000 Materials 1,042,000 1,300,000 1,535,000 1,560,000 1,584,000 Other Operating Expenses 1,423,000 1,428,000 1,435,000 1,442,000 1,450,000 Debt Service 4,315,000 4,293,000 9,585,000 9,580,000 9,006,000 Capital Outlay 611,000 600,000 990,000 550,000 600,000 Capital Improvement Program 4,287,000 4,475,000 3,989,000 3,758,000 4,170,000 TOTAL EXPENDITURES 36,207,000 35,696,000 37,722,000 37,614,750 38,093,153 CHANGE IN EQUITY 417,000 2,168,000 1,716,000 2,021,250 1,765,848 BEGINNING FUND EQUITY 113,029,877 113,446,877 115,614,877 117,330,877 119,352,127 ENDING FUND EQUITY $ 113,446,877 $ 115,614,877 $ 117,330,877 $ 119,352,127 $ 121,117,975 41EAST VALLEY WATER DISTRICT Overview of revenues and other financing sources and expenditures. CONSOLIDATED FINANCIAL SCHEDULES Overview of revenues and other financing sources and expenditures. Consolidated Financial Summary FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4100 Water Sales $ 11,927,523 $ 13,500,000 $ 13,800,000 $ 14,500,000 $ 1,000,000 7% 4200 Meter Charges 8,063,077 8,960,000 8,910,000 8,845,000 (115,000)-1% 4301 Penalties 603,063 685,000 685,000 485,500 (199,500)-29% 4400 WW Collection Charges 4,286,594 4,460,000 4,460,000 4,545,000 85,000 2% 4500 WW Treatment Charges 7,165,655 7,610,000 7,610,000 7,900,000 290,000 4% 4605 Other Operating Charges 934,027 360,000 540,000 201,500 (158,500)-44% 4701 Interest Income 146,874 97,000 97,000 97,000 - 0% 4703 Energy Incentives/ Rebates - - - - - 4704 Miscellaneous Revenue 868,194 45,000 45,000 50,000 5,000 11% TOTAL REVENUES $ 33,995,007 $ 35,717,000 $ 36,147,000 $ 36,624,000 $ 907,000 3% FISCAL YEAR BUDGET 2017-201842 FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE EXPENSES – OPERATING BY PROGRAM 1000 Governing Board $ 230,282 $ 213,000 $ 213,000 $ 229,000 $ 16,000 8% 2000 General Administration 1,130,321 1,349,000 1,295,600 1,201,000 (148,000)-11% 2100 HR/Risk Management 756,727 735,000 753,300 845,000 110,000 15% 2200 Public Affairs 512,584 1,018,000 685,470 828,000 (190,000)-19% 2300 Conservation 2,090,093 1,021,000 1,124,150 575,000 (446,000)-44% 3000 Finance 1,069,960 1,088,000 1,176,550 1,182,000 94,000 9% 3200 Information Technology 727,209 774,000 772,300 963,000 189,000 24% 3300 Customer Service 1,543,939 1,730,000 1,699,180 1,834,000 104,000 6% 3400 Meter Services 311,727 348,000 348,000 397,000 49,000 14% 4000 Engineering 1,186,444 1,219,000 1,263,900 1,442,000 223,000 18% 5000 Water Production Admin 424,382 394,000 439,000 469,000 75,000 19% 5000-51 Source of Supply 2,031,043 3,075,000 2,765,850 2,654,000 (421,000)-14% 5000-52 Pumps & Boosters 631,532 714,000 714,000 726,000 12,000 2% 5000-54 Trans & Distribution 213,533 221,000 221,000 223,000 2,000 1% 5100 Water Treatment 756,091 827,000 827,000 890,000 63,000 8% 5200 Water Quality 308,579 407,000 407,000 410,000 3,000 1% 6000 Maintenance Admin 312,757 216,000 216,000 220,000 4,000 2% 6100 Water Maintenance 1,976,275 1,759,000 1,759,000 2,021,000 262,000 15% 6200 Wastewater Maintenance 7,711,242 8,233,000 8,231,850 8,593,000 360,000 4% 7000 Facilities Maintenance 761,526 804,000 802,850 776,000 (28,000)-3% 7100 Fleet Maintenance 494,969 545,000 545,000 516,000 (29,000)-5% SUBTOTAL OPERATING EXPENSES 25,181,215 26,690,000 26,260,000 26,994,000 304,000 1% EXPENSES – OTHER Debt Service 3,560,567 4,324,000 4,324,000 4,315,000 (9,000)0% Capital Outlay 637,517 743,000 1,045,000 611,000 (132,000)-18% Capital Improvement 3,089,678 3,425,000 6,282,000 4,287,000 1,340,000 39% Transfer to Reserves 1,526,030 535,000 535,000 417,000 (118,000)-22% Transfer from Reserves - - (2,299,000) - (478,000)- SUBTOTAL OTHER EXPENSES 8,813,792 9,027,000 9,887,000 9,630,000 603,000 7% NET $ - $ - $ - $ - $ - 43EAST VALLEY WATER DISTRICT ITEMIZED EXPENSE SUMMARY FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE PERSONNEL EXPENSES 5101 Regular Labor $ 5,937,370 $ 5,846,000 $ 5,861,866 $ 6,090,000 $ 244,000 4% 5102 Temporary Labor 77,860 29,000 39,200 15,000 (14,000)-48% 5103 Overtime 321,110 279,000 280,150 292,000 13,000 5% 5104 Standby 36,695 35,000 39,000 40,000 5,000 14% 5200 Benefits 2,233,613 2,441,000 2,202,045 2,887,000 446,000 18% PERSONNEL TOTAL 8,606,648 8,630,000 8,422,261 9,324,000 694,000 8% WATER SUPPLY 6101 Purchased Water 69,798 750,000 442,000 500,000 (250,000)-33% 6102 Replenishment 147,497 163,000 163,000 163,000 - 0% 6103 Water Assessment 253,956 332,000 332,000 138,000 (194,000)-58% WATER SUPPLY TOTAL 471,251 1,245,000 937,000 801,000 (444,000)-36% OPERATING EXPENSES 6201 Materials & Supplies 549,469 669,000 668,350 613,000 (56,000)-8% 6202 Tools 18,924 57,000 58,600 38,000 (19,000)-33% 6203 Office Supplies 41,158 45,000 48,940 46,000 1,000 2% 6204 Chemicals 275,553 345,000 345,000 345,000 - 0% 6205 Conservation Rebates 1,649,011 500,000 500,000 200,000 (300,000)-60% 6301 Contract Services 1,820,632 2,607,000 2,623,161 2,575,000 (32,000)-1% 6302 Banking Services 252,206 315,000 328,549 323,000 8,000 3% 6303 Printing & Publishing 98,813 137,000 137,704 103,000 (34,000)-25% 6304 Legal Services 243,364 236,000 271,000 281,000 45,000 19% 6305 Treatment Services 7,302,389 7,610,000 7,610,000 7,900,000 290,000 4% 6306 Rents & Leases 18,511 12,000 12,000 - (12,000)-100% 6307 Uniforms 65,904 74,000 75,800 74,000 - 0% 6308 Billing Services 47,086 52,000 51,600 52,000 - 0% 6309 Shut Off Notice Services 345,322 378,000 378,000 359,000 (19,000)-5% 6310 Street Services 353,145 300,000 300,000 400,000 100,000 33% 6311 Landscape Services 156,915 145,000 140,800 145,000 - 0% 6312 Janitorial Services 73,910 125,000 125,000 142,000 17,000 14% 6401 Utilities 24,866 26,000 21,500 26,000 - 0% FISCAL YEAR BUDGET 2017-201844 6402 Telephone 112,937 133,000 138,528 137,000 4,000 3% 6403 Electricity 1,715,505 1,820,000 1,818,850 1,820,000 - 0% 6404 Fuel 118,663 125,000 150,000 125,000 - 0% 6405 Permits 90,222 220,000 220,000 220,000 - 0% 6406 Postage 165,670 217,000 216,500 208,000 (9,000)-4% 6501 Memberships 45,699 108,000 110,519 110,000 2,000 2% 6502 Prof Development 152,797 205,000 196,664 181,000 (24,000)-12% 6503 Education Assistance 283 10,000 10,840 13,000 3,000 30% 6504 Meetings 11,116 32,000 30,834 43,000 11,000 34% 6505 Employee Recognition 12,991 14,000 14,000 19,000 5,000 36% 6701 General Insurance 188,321 175,000 175,000 210,000 35,000 20% 6702 Insurance Claims 2,034 2,000 2,000 10,000 8,000 400% 6703 Cash Over/Short 1,052 1,000 1,000 1,000 - 0% 6705 OPEB Retirees 148,848 120,000 120,000 150,000 30,000 25% OPERATING EXPENSES TOTAL 16,103,316 16,815,000 16,900,739 16,869,000 54,000 0% TOTAL EXPENSES $ 25,181,215 $ 26,690,000 $26,260,000 $ 26,994,000 $ 304,000 1% 45EAST VALLEY WATER DISTRICT Water Fund East Valley Water District understands the importance of preserving California’s water supplies, especially in times of drought, and has taken many steps to encourage water use efficiency. The water budget based rates promote water efficiency and is based on the cost of service; is equitable and fair; and promotes sustainable behavior change. Water budget based rates structure has been recognized by the SWRCB for producing superior water savings and is an approved alternative approach for compliance with current California Drought Emergency Conservation Regulations. RATES EVWD bills all customers on a monthly basis for water usage. In March 2015, the Board of Directors unanimously approved restructuring the water rates from a uniform structure to water budget based rates to encourage efficient water use and secure the District’s long-term financial stability. The Board’s decision also included the approval of a three-year schedule of changes to the District’s water rates. Water budget based rates are designed to treat customers fairly by meeting each individual customer’s unique needs. Its intent is to determine the quantity of water that would be considered an efficient level of water use. EVWD considers multiple factors in calculating each customer’s monthly water budget: • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses/Live Stock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather The new rates have been designed with a three-tier structure, each developed based on the District’s cost of service to provide three different sources and uses of water. Based on the new rate structure, approximately 60 percent of the District’s revenue requirements may be captured from the amount of water used. Since the adoption of water budget based rates, the District has experienced success in reducing water consumption and stabilizing revenues to ensure our fixed operational costs are covered. On May 24, 2017, the Board of Directors unanimously approved a modification to the final phase in the three-year rate increase. The modification will only increase tiered rates by half of the authorized increase and maintain the meter charge at the FY 2016-17 rates. Monthly Meter Charges METER SIZE FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 5/8 in. $ 23.06 $ 23.06 $ 23.06 $ 23.06 3/4 in. 29.27 29.27 29.27 29.27 1 in. 41.71 41.71 41.71 41.71 1.5 in. 72.81 72.81 72.81 72.81 2 in. 110.13 110.13 110.13 110.13 3 in. 228.30 228.30 228.30 228.30 4 in. 402.44 402.44 402.44 402.44 6 in. 819.14 819.14 819.14 819.14 8 in.$ 1,503.25 $ 1,503.25 $ 1,503.25 $ 1,503.25 FISCAL YEAR BUDGET 2017-201846 Commodity Charges COMMODITY RATES FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Tier 1 $1.45 $1.73 $1.73 $1.73 Tier 2 2.07 2.46 2.46 2.46 Tier 3 2.89 3.44 3.44 3.44 Monthly Fire Line Service Charges METER SIZE FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 1 in. $8.78 $8.78 $8.78 $8.78 1.5 in. 13.18 13.18 13.18 13.18 2 in. 17.57 17.57 17.57 17.57 3 in. 26.35 26.35 26.35 26.35 4 in. 35.14 35.14 35.14 35.14 6 in. 52.70 52.70 52.70 52.70 8 in. 70.27 70.27 70.27 70.27 10 in. 87.84 87.84 87.84 87.84 REVENUES Water revenues are generated through the following avenues: • Fixed Meter Charges • Water Consumption Sales • Penalties ―Late Fees ―Shut Off Notice ―Reconnect Fees • Initiation of Service Fees • Energy Incentives • Miscellaneous Reimbursements ―District property damage ―In Lieu Programs • Interest In order to be as accurate as possible, staff evaluated and considered external factors that would have any impact on revenue projections: • Number of accounts by class • Total irrigable landscaped area in the District service area • Historical water usage • State mandates • Operational changes 47EAST VALLEY WATER DISTRICT A careful analysis of the District’s water accounts and usage were considered as the foundation for projecting water sales. To determine Tier 1 usage, each residential account was assumed to receive 10 units of Tier 1 water. Next, staff used GIS data to provide the total square footage of irrigable landscape and converted the efficient amount of water necessary. Tier 3 water was based on historical usage for irrigation accounts. Other classification includes temporary water meters used mainly for construction. The table below reflects FY 2016-17 assumptions for revenue projections. The number of accounts does not include fire services. 37%Meter Charges 60%Water Sales 3%Other Charges Sources of Revenue Water Sales (Acre Feet) CLASS NO. OF ACCOUNTS TIER 1 TIER 2 TIER 3 TOTAL TOTAL SALES Residential 19,526 5,094 3,076 758 8,928 $ 8,215,000 Multi-Family 463 2,066 769 402 3,237 3,104,000 Commercial 988 1,187 92 149 1,428 1,126,000 Irrigation 275 -888 601 1,489 2,055,000 TOTALS 21,252 8,347 4,825 1,910 15,082 $ 14,500,000 FISCAL YEAR BUDGET 2017-201848 Meter Charge METER SIZE NO. OF SERVICES RATE TOTAL 5/8 in.4,321 $ 23.06 $ 1,205,000 3/4 in.12,150 29.27 4,299,000 1 in.4,146 41.71 2,091,000 1.5 in.254 72.81 224,000 2 in.283 110.13 378,000 3 in.64 228.30 177,000 4 in.22 402.44 108,000 6 in.2 819.44 20,000 8 in.10 1,503.28 182,000 Fire Service 1 in.113 8.78 1,000 Fire Service 1.5 in.9 13.18 2,000 Fire Service 4 in.49 35.14 21,000 Fire Service 6 in.131 52.70 84,000 Fire Service 8 in.49 70.27 42,000 Fire Service 10 in.10 87.84 11,000 TOTALS 21,613 $ 8,845,000 EXPENSES Expenses are based on the cost to provide water to meet customer demands. The table below projects the amount of water to be produced for FY 2017- 18. The amount of water produced is more than the amount of water sold to account for normal system water loss. The Conservation Program is committed to assisting customers with conservation efforts through the continuance of the rebate programs and instructor- led seminars and demonstrations. Staff continues to review and enhance processes to ensure optimal performance. However, due to the new rate structure, cost allocations for the Information Technology and Customer Service Departments were shifted to the Water Fund. Previously, those costs were allocated evenly between the Water and Wastewater Fund. It has been determined that budget based rates require a significant amount of time and commitment from staff therefore justifying the shift in expenses. Moreover, due to the uncertainty of revenue income, staff has reprioritized programs to ensure critical programs continue while additional services can be re-evaluated at mid-year. CONCLUSION The District strives to provide safe and reliable water delivery services. The District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization. The District maintains its commitment to investing in critical infrastructure to ensure the future of its thriving community. Due to the variable factors, mid-year review will be an important time to review projections and program expenditures to make adjustments as necessary. 49EAST VALLEY WATER DISTRICT Water Production (Acre Feet) SOURCE OF SUPPLY FY 2014-15 ACTUAL FY 2015-16 ACTUAL FY 2016-17 PROJECTED FY 2017-18 PROPOSED Ground Water 18,210 16,164 12,928 13,315 Surface Water 3,350 2,330 3,913 3,700 Purchased 237 174 606 800 TOTALS 21,560 18,494 17,447 17,815 17%CapitalExpenditures 12%Source ofSupply 28%Administration 17%Debt Service 2%ReserveContribution 3%Pumps &Boosters 4%Treatment 10%Transmission &Distribution 7%CustomerService Water Fund Expenses by Cost Center FISCAL YEAR BUDGET 2017-201850 FY 2017-18 Proposed Budget Water Fund FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4100 Water Sales $ 11,927,523 $13,500,000 $13,800,000 $14,500,000 $ 1,000,000 7% 4200 Meter Charges 8,063,077 8,960,000 8,910,000 8,845,000 (115,000)-1% 4301 Penalties 213,337 220,000 100,000 145,000 (75,000)-34% 4303 Disconnect Notice Charge 347,250 415,000 415,000 300,500 (114,500)-28% 4605 Other Operating Charges 825,829 170,000 470,000 131,500 (38,500)-23% 4701 Interest Income 106,755 75,000 75,000 75,000 - 0% 4703 Energy Incentives/ Rebates - - - - - - 4704 Miscellaneous Revenue 868,194 45,000 45,000 50,000 5,000 11% TOTAL REVENUES 22,351,965 23,385,000 23,815,000 24,047,000 662,000 3% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 Regular Labor 329,966 342,000 342,000 358,000 16,000 5% 5103 Overtime 28,256 27,000 27,000 30,000 3,000 11% 5200 Benefits 108,398 129,000 129,000 151,000 22,000 17% 6101 Purchased Water 69,798 750,000 442,000 500,000 (250,000)-33% 6102 Groundwater Replenishment 147,497 163,000 163,000 163,000 - 0% 6103 Water Assessment 253,956 332,000 332,000 138,000 (194,000)-58% 6201 Materials & Supplies 43,837 63,000 63,000 63,000 - 0% 6204 Chemicals 93,213 150,000 150,000 150,000 - 0% 6301 Contract Services 41,366 256,000 256,000 235,000 (21,000)-8% 6311 Landscape Services 53,307 40,000 40,000 40,000 - 0% 6402 Telephone 594 - - - - - 6403 Electricity 1,057,647 1,000,000 998,850 1,000,000 - 0% 6405 Permits 23,129 100,000 100,000 100,000 - 0% SOURCE OF SUPPLY TOTAL 2,250,964 3,352,000 3,042,850 2,928,000 (424,000)-13% PUMPS & BOOSTERS 5101 Regular Labor 80,976 85,000 85,000 92,000 7,000 8% 5103 Overtime 8,795 5,000 5,000 5,000 - 0% 5200 Benefits 22,341 29,000 29,000 34,000 5,000 17% 6201 Materials & Supplies 15,236 25,000 25,000 25,000 - 0% 6301 Contract Services $ 72,968 $ 80,000 $ 80,000 $ 80,000 - 0% 51EAST VALLEY WATER DISTRICT FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE 6311 Landscape Services $ - $ 35,000 $ 35,000 $ 35,000 $ - 0% 6403 Electricity 447,571 500,000 500,000 500,000 - 0% PUMPS & BOOSTERS TOTAL 647,887 759,000 759,000 771,000 12,000 2% TREATMENT 5101 Regular Labor 234,370 217,000 217,000 237,000 20,000 9% 5103 Overtime 15,014 10,000 10,000 10,000 - 0% 5200 Benefits 75,006 69,000 69,000 92,000 23,000 33% 6201 Materials & Supplies 11,205 20,000 20,000 20,000 - 0% 6204 Chemicals 140,403 150,000 150,000 150,000 - 0% 6301 Contract Services 160,650 179,000 175,100 199,000 20,000 11% 6311 Landscape Services 21,531 14,000 9,800 14,000 - 0% 6401 Utilities 1,196 15,000 10,500 15,000 - 0% 6402 Telephone 10,725 - - - - - 6403 Electricity 108,104 200,000 200,000 200,000 - 0% 6405 Permits - - - - - - TREATMENT TOTAL 778,204 874,000 861,400 937,000 63,000 7% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 950,606 894,000 894,000 964,000 70,000 8% 5103 Overtime 178,408 157,000 157,000 160,000 3,000 2% 5200 Benefits 371,434 376,000 376,000 481,000 105,000 28% 6201 Materials & Supplies 230,636 215,000 215,000 220,000 5,000 2% 6202 Tools 8,504 32,000 32,000 16,000 (16,000)-50% 6204 Chemicals 41,937 45,000 45,000 45,000 - 0% 6301 Contract Services 141,984 116,000 116,000 118,000 2,000 2% 6307 Uniforms 16,996 20,000 20,000 20,000 - 0% 6310 Street Services 353,145 300,000 300,000 400,000 100,000 33% 6405 Permits 38,806 - - - - - 6406 Postage 2,404 2,000 2,000 2,000 - 0% TRANS & DIST TOTAL 2,334,860 2,157,000 2,157,000 2,426,000 269,000 12% CUSTOMER SERVICE 5101 Regular Labor 509,908 548,100 534,906 558,400 10,300 2% 5102 Temporary Labor 15,057 2,100 2,100 2,100 - 0% 5103 Overtime 14,247 23,500 23,500 23,500 - 0% 5200 Benefits $ 218,557 $ 267,800 $ 267,800 $ 304,400 $ 36,600 14% FISCAL YEAR BUDGET 2017-201852 FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE 6201 Materials & Supplies $ 3,433 $ 5,100 $ 5,100 $ 8,600 $ 3,500 69% 6202 Tools 773 1,000 1,000 1,000 - 0% 6203 Office Supplies 4,826 2,100 2,366 2,800 700 33% 6301 Contract Services 72,716 56,800 56,800 82,700 25,900 46% 6302 Banking Services 168,444 206,500 206,500 212,100 5,600 3% 6303 Printing & Publishing - 2,800 3,258 3,500 700 25% 6304 Legal Services 456 3,500 3,500 3,500 - 0% 6306 Rents & Leases 7,700 8,400 8,400 - (8,400)-100% 6307 Uniforms 13,626 8,600 8,880 7,200 (1,400)-16% 6308 Billing Services 32,960 36,400 36,120 36,400 - 0% 6309 Shut Off Notice Services 345,322 378,000 378,000 359,000 (19,000)-5% 6402 Telephone 2,022 3,400 3,148 6,200 2,800 82% 6406 Postage 94,252 105,700 105,700 105,700 - 0% 6502 Professional Development 3,886 9,800 9,754 9,800 - 0% 6503 Education Assistance 198 2,100 2,184 700 (1,400)-67% 6504 Meetings - 1,000 1,784 2,000 1,000 100% 6703 Cash Over/Short 736 - - - - - CUSTOMER SERVICE TOTAL 1,509,119 1,672,700 1,660,800 1,729,600 56,900 3% ADMINISTRATION 5101 Regular Labor 2,621,544 2,434,800 2,438,300 2,559,100 124,300 5% 5102 Temporary Labor 41,945 18,200 18,200 8,400 (9,800)-54% 5103 Overtime 37,041 38,300 38,300 43,200 4,900 13% 5104 Standby 30,084 33,000 33,000 38,000 5,000 15% 5200 Benefits 973,673 1,003,500 1,003,500 1,153,500 150,000 15% 6201 Materials & Supplies 158,477 205,500 224,750 174,800 (30,700)-15% 6202 Tools 5,651 16,400 16,400 13,100 (3,300)-20% 6203 Office Supplies 25,852 31,200 31,200 30,900 (300)-1% 6205 Conservation Rebates 1,649,011 500,000 500,000 200,000 (300,000)-60% 6301 Contract Services 836,545 1,207,800 1,237,800 1,123,300 (84,500)-7% 6302 Banking Services 8,100 14,000 14,000 14,000 - 0% 6303 Printing & Publishing 83,924 107,900 117,100 75,400 (32,500)-30% 6304 Legal Services 170,077 161,000 162,000 192,500 31,500 20% 6306 Rents & Leases 5,258 - - - - - 6307 Uniforms $ 24,790 $ 32,400 $ 32,400 $ 33,900 $ 1,500 5% 53EAST VALLEY WATER DISTRICT FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE 6311 Landscape Services $ 57,454 $ 39,200 $ 39,200 $ 39,200 $ - 0% 6312 Janitorial Services 51,737 87,500 87,500 97,400 9,900 11% 6401 Utilities 16,569 7,700 7,700 7,700 - 0% 6402 Telephone 72,955 98,600 98,600 98,600 - 0% 6403 Electricity 71,528 84,000 84,000 84,000 - 0% 6404 Fuel 83,064 112,500 112,500 112,500 - 0% 6405 Permits 19,801 84,000 84,000 84,000 - 0% 6406 Postage 24,987 52,800 55,750 38,100 (14,700)-28% 6501 Memberships & Dues 32,593 77,300 77,300 78,900 1,600 2% 6502 Professional Development 106,976 139,400 135,900 120,300 (19,100)-14% 6503 Education Assistance - 5,500 5,500 9,500 4,000 73% 6504 Meetings 7,781 22,000 22,000 27,800 5,800 26% 6505 Employee Recognition 9,094 9,800 9,800 13,300 3,500 36% 6701 General Insurance 131,825 122,500 122,500 147,000 24,500 20% 6702 Insurance Claims 1,424 1,400 1,400 7,000 5,600 400% 6704 Bad Debt - 1,000 1,000 1,000 - 0% 6705 OPEB Retirees 104,194 84,000 84,000 105,000 21,000 25% ADMINISTRATION TOTAL 7,463,954 6,833,200 6,895,600 6,731,400 (101,800)-1% TOTAL OPERATING EXPENSES 14,984,988 15,647,900 15,376,650 15,523,000 (124,900)-1% OTHER USES 7101 Debt Principal 1,630,602 2,343,000 2,343,000 2,402,000 59,000 3% 7102 Debt Interest 1,634,047 1,664,000 1,664,000 1,600,000 (64,000)-4% 7500 Reserve Contribution 1,413,255 515,000 521,100 417,000 (98,000)-19% 8101 Capital Outlay 627,827 435,100 729,250 480,000 44,900 10% 8999 Capital Improvement Program 2,061,246 2,780,000 3,181,000 3,625,000 845,000 30% TOTAL OTHER USES 7,366,977 7,737,100 8,438,350 8,524,000 786,900 10% SUMMARY Total Revenue 22,351,965 23,385,000 23,815,000 24,047,000 662,000 3% Total Operating Expenses 14,984,988 15,647,900 15,376,650 15,523,000 (124,900)-1% Total Other Expenses 7,366,977 7,737,100 8,438,350 8,524,000 786,900 10% NET $ - $ - $ - $ - $ - - FISCAL YEAR BUDGET 2017-201854 FY 2012-13 ACTUAL FY 2013-14 ACTUAL FY 2014-15 ACTUAL FY 2015-16 ACTUAL FY 2016-17 PROJECTED FY 2017-18 PROPOSED Revenues Operating Expenses $10,997,073 $12,275,670 $12,915,690 $14,984,988 $15,376,650 $15,523,000 $20,385,046 $23,120,539 $19,879,330 $22,351,965 $23,815,000 $24,047,000 $5M $10M $15M $20M $25M Water Fund Revenues Vs. Expenses 55EAST VALLEY WATER DISTRICT Wastewater Fund The Wastewater Fund pays for all activities related to the operations and maintenance of the wastewater collection infrastructure as well as the treatment of wastewater. All treatment charges collected from customers are remitted to the City of San Bernardino Municipal Water Department. RATES There are two sets of rates that make up the Wastewater Charge: 1. East Valley Water District Collection System Charge that includes conveyance and maintenance of the wastewater mains and; 2. City of San Bernardino Wastewater Treatment Charge that includes the treatment and disposal of waste. Each set of rates has two components: 1. System Charge based on customer type, Residential or Commercial. 2. Service Charge based on the amount and concentration of the wastewater discharged into the wastewater system. Amount and concentration have a direct impact to the entire wastewater system and treatment facility. The District’s service area for wastewater is divided into two regions with City Creek being the identify- ing landmark. Residences and businesses west of City Creek are charged a different rate than those east of City Creek due to the timing of development and the hydraulics of the system. On January 25, 2017, the District held a Prop. 218 Hearing and ad- opted a rate increase imposed by the City of San Bernardino effective July 1, 2017. The adopted rates by customer class are listed in the rate tables below. RESIDENTIAL East Valley Water District bills residential customers a monthly wastewater charge based on the number of dwelling units, up to four units, per property. Properties with four or more units are classified as multi-family. The table below identifies the number of services and the wastewater charges per month. COMMERCIAL The District bills commercial customers on a monthly basis for wastewater. The charge consists of four components—two flat rates and two consumption based rates. The two flat rates are EVWD’s system charge and the City of San Bernardino’s treatment charge. The two consumption based rates are for EVWD’s Collection Charge per hundred cubic feet (HCF) and the City of San Bernardino’s Treatment Charge per HCF. Additionally, the consumption based rates are calculated using the following formula [($.55/HCF EVWD Collection Charge + City of San Bernardino Treatment Charge) x HCF used]. Shown below is a schedule of commercial wastewater rates for FY 2016-17. Residential Wastewater Rates RESIDENTIAL NUMBER OF SERVICES COLLECTION CHARGE TREATMENT CHARGE TOTAL MONTHLY CHARGE West of City Creek 14,122 $ 15.36 $ 21.55 $ 36.91 East of City Creek 5,283 17.36 21.55 38.91 Commercial Wastewater Rates COMMERCIAL CUSTOMER EVWD SYSTEM COLLECTION CHARGE CITY OF SAN BERNARDINO TREATMENT CHARGE EVWD Commercial Charge Multi-Family (4+ Units), Mobile HP Non-Residential Customer Classes $ 3.90 $ 1.97 3.52 FISCAL YEAR BUDGET 2017-201856 REVENUES Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services. The District anticipates a small increase in revenue related to the assessment of wastewater collection charges to vacant homes. In addition, the City of San Bernardino has adopted rate increases for treatment. Those revenues will be remitted to the City of San Bernardino, therefore having no impact on District Operations. Sources of Revenue 63%WastewaterTreatmentCharges 1%Other Charges 36%WastewaterCollectionCharges Volumetric Rates CUSTOMER TYPE EVWD SYSTEM COLLECTION CHARGE $/HCF CITY OF SAN BERNARDINO TREATMENT CHARGE $/HCF WEST OF CITY CREEK Multi-Family 0.55 1.53 Commercial/Retail/Dry Cleaners 0.55 2.55 Restaurants/Hotels 0.55 3.28 Laundromats/Government/Office Building/Motels 0.55 1.83 Schools/Churches 0.55 1.33 Convalescent Homes 0.55 1.63 Office Buildings/Motels 0.55 1.83 Auto Repair/Service/Carwash 0.55 1.58 EAST OF CITY CREEK Multi-Family 0.64 1.53 Commercial/Retail/Dry Cleaners 0.64 2.55 Restaurants/Hotels 0.64 3.28 Laundromats/Government 0.64 1.83 Schools/Churches 0.64 1.33 Convalescent Homes 0.64 1.63 Office Buildings/Motels 0.64 1.83 Auto Repair/Service/Carwash 0.64 1.58 57EAST VALLEY WATER DISTRICT EXPENSES Operating expenses have remained the same overall in the Wastewater Fund. The District continues to conduct preventive maintenance programs on the wastewater mains such as videoing the lines and cleaning the lines on a regular schedule. Additionally, staff has invested more time and efforts into the spot repairs of the mains when sags and cracks are found in the lines when reviewing video tapes of the wastewater system. With the implementation of Water Budget Based Rates, costs associated with Customer Service and Information Technology were shifted to the Water Fund because of increased efforts to administer the new tiered rates. Over the past year, the District has been exploring options to resolve the District’s wastewater capacity limitations while utilizing existing resources in the most effective and efficient manner during the ongoing drought. The completion of the Recycled Water Feasibility Study in October 2014 recommended that the District initiate a recycled water program to treat a majority of the wastewater flows generated by East Valley Water District customers. The treated wastewater can then be reused for groundwater recharge, providing the greatest benefit to the District’s customers. Building a Recycled Water Center will mitigate the impacts of future droughts by providing a long term reliable water supply. This approach makes the District self-reliant rather than relying on the City of San Bernardino for treatment and disposal of wastewater. The continued focus for FY 2017-18 will be moving this project forward toward design and build. CONCLUSION The Wastewater Fund is balanced, however, a rate study must be conducted to ensure proper rates are charged to fund future capital improvement projects and that the District continues to meet debt service obligations as set forth in the bond covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Board of Directors on a quarterly basis. 19%Administration 2%Debt Service 63%Treatment 6%Capital 6%Treatment &Distribution 4%CustomerService Wastewater Fund Expenses by Cost Center FISCAL YEAR BUDGET 2017-201858 FY 2017-18 Proposed Budget Wastewater Fund FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE REVENUES 4301 Late Payment Fee $ 42,476 $ 50,000 $ 170,000 $ 40,000 $ (10,000)-20% 4400 Wastewater Collection Charges 4,286,594 4,460,000 4,460,000 4,545,000 85,000 2% 4500 Wastewater Treatment Charges 7,165,655 7,610,000 7,610,000 7,900,000 290,000 4% 4605 Other Operating Charge 108,198 190,000 70,000 70,000 (120,000)-63% 4701 Interest Income 40,119 22,000 22,000 22,000 - 0% TOTAL REVENUES 11,643,042 12,332,000 12,332,000 12,577,000 245,000 2% OPERATING EXPENSES TREATMENT 6305 Treatment Services 7,302,389 7,610,000 7,610,000 7,900,000 290,000 4% TREATMENT TOTAL 7,302,389 7,610,000 7,610,000 7,900,000 290,000 4% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 135,687 242,000 302,000 280,000 38,000 16% 5103 Overtime 24,562 3,000 3,000 3,000 - 0% 5200 Benefits 63,899 115,000 55,000 144,000 29,000 25% 6201 Materials & Supplies 21,902 27,000 27,000 30,000 3,000 11% 6202 Tools 1,595 5,000 5,000 5,000 - 0% 6301 Contract Services 159,820 228,000 226,850 228,000 - 0% 6307 Uniforms 1,388 3,000 3,000 3,000 - 0% TRANS & DIST TOTAL 408,853 623,000 621,850 693,000 70,000 11% CUSTOMER SERVICE 5101 Regular Labor 132,014 144,900 138,960 141,600 (3,300)-2% 5102 Temporary Labor 6,453 900 900 900 - 0% 5103 Overtime 1,281 1,500 1,500 1,500 - 0% 5200 Benefits 56,623 70,200 70,044 72,600 2,400 3% 6201 Materials & Supplies 1,306 900 750 2,400 1,500 167% 6202 Tools - - - - - - 6203 Office Supplies 2,068 900 1,014 1,200 300 33% 6301 Contract Services 29,011 22,200 19,047 33,300 11,100 50% 6302 Banking Services 72,190 88,500 88,449 90,900 2,400 3% 6303 Printing & Publishing - 1,200 1,346 1,500 300 25% 6304 Legal Services $ 196 $ 1,500 $ 1,500 $ 1,500 $ - 0% 59EAST VALLEY WATER DISTRICT FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE 6306 Rents & Leases $ 3,300 $ 3,600 $ 3,600 $ - $ (3,600)-100% 6307 Uniforms 3,814 2,400 2,520 1,800 (600)-25% 6308 Billing Services 14,126 15,600 15,480 15,600 - 0% 6402 Telephone 332 600 492 1,800 1,200 200% 6406 Postage 40,394 45,300 45,300 45,300 - 0% 6502 Professional Development 1,666 4,200 4,180 4,200 - 0% 6503 Education Assistance 85 900 936 300 (600)-67% 6703 Cash Over/Short 316 - - - - - CUSTOMER SERVICE TOTAL 365,175 405,300 396,018 416,400 11,100 3% ADMINISTRATION 5101 Regular Labor 942,299 938,200 909,700 981,900 43,700 5% 5102 Temporary Labor 14,405 7,800 18,000 3,600 (4,200)-54% 5103 Overtime 13,506 13,700 14,850 15,800 2,100 15% 5104 Standby 6,611 2,000 6,000 2,000 - 0% 5200 Benefits 343,682 381,500 202,701 440,500 59,000 15% 6201 Materials & Supplies 63,437 107,500 87,750 69,200 (38,300)-36% 6202 Tools 2,401 2,600 4,200 2,900 300 12% 6203 Office Supplies 8,412 10,800 14,360 11,100 300 3% 6301 Contract Services 305,572 461,200 455,564 407,700 (53,500)-12% 6302 Banking Services 3,472 6,000 19,600 6,000 - 0% 6303 Printing & Publishing 14,889 25,100 16,000 22,600 (2,500)-10% 6304 Legal Services 72,635 70,000 104,000 83,500 13,500 19% 6306 Rents & Leases 2,253 - - - - - 6307 Uniforms 5,290 7,600 9,000 8,100 500 7% 6311 Landscape Services 24,623 16,800 16,800 16,800 - 0% 6312 Janitorial Services 22,173 37,500 37,500 44,600 7,100 19% 6401 Utilities 7,101 3,300 3,300 3,300 - 0% 6402 Telephone 26,309 30,400 36,288 30,400 - 0% 6403 Electricity 30,655 36,000 36,000 36,000 - 0% 6404 Fuel 35,599 12,500 37,500 12,500 - 0% 6405 Permits 8,486 36,000 36,000 36,000 - 0% 6406 Postage 3,633 11,200 7,750 16,900 5,700 51% 6501 Memberships & Dues $ 13,106 $ 30,700 $ 33,219 $ 31,100 $ 400 1% FISCAL YEAR BUDGET 2017-201860 FY 2015-16 ACTUALS FY 2016-17 BUDGET 2016-17 PROJECTED 2017-18 PROPOSED AMOUNT CHANGED % CHANGE 6502 Professional Development $ 40,269 $ 51,600 $ 46,830 $ 46,700 $ (4,900)-9% 6503 Education Assistance - 1,500 2,220 2,500 1,000 67% 6504 Meetings 3,335 9,000 7,050 13,200 4,200 47% 6505 Employee Recognition 3,897 4,200 4,200 5,700 1,500 36% 6701 General Insurance 56,496 52,500 52,500 63,000 10,500 20% 6702 Insurance Claims 610 600 600 3,000 2,400 400% 6705 OPEB Retirees 44,654 36,000 36,000 45,000 9,000 25% ADMINISTRATION TOTAL 2,119,810 2,403,800 2,255,482 2,461,600 57,800 2% TOTAL OPERATING EXPENSES 10,196,227 11,042,100 10,883,350 11,471,000 428,900 4% OTHER USES 7101 Debt Principal 102,958 95,000 95,000 95,000 - 0% 7102 Debt Interest 192,960 222,000 222,000 218,000 (4,000)-2% 7500 Reserve Contribution 112,776 692,900 (2,285,100) (478,000) (1,170,900)-169% 8101 Capital Outlay 9,690 70,000 315,750 131,000 61,000 87% 8999 Capital Improvement Program 1,028,431 210,000 3,101,000 1,140,000 930,000 443% TOTAL OTHER USES 1,446,815 1,289,900 1,448,650 1,106,000 (183,900)-14% SUMMARY Total Revenue 11,643,042 12,332,000 12,332,000 12,577,000 245,000 2% Total Operating Expenses 10,196,227 11,042,100 10,883,350 11,471,000 428,900 4% Total Other Expenses 1,446,815 1,289,900 1,448,650 1,106,000 (183,900)-14% Transfer from Reserves - - - - - - NET $ - $ - $ - $ - $ -- 61EAST VALLEY WATER DISTRICT $2M $4M $6M $8M $10M $12M FY 2012-13 ACTUAL FY 2013-14 ACTUAL FY 2014-15 ACTUAL FY 2015-16 ACTUAL FY 2016-17 PROJECTED FY 2017-18 PROPOSED Revenues Operating Expenses $11,585,430 $11,974,364 $11,572,011 $11,643,042 $12,332,000 $12,577,000 $10,113,949 $10,460,073 $10,237,972 $10,196,227 $10,883,350 $11,471,000 $14M Wastewater Fund Revenues Vs. Expenses FISCAL YEAR BUDGET 2017-201862 THIS PAGE IS LEFT BLANK INTENTIONALLY 63EAST VALLEY WATER DISTRICT Comprehensive information for each functional program within the District. PROGRAM SUMMARIES Comprehensive information for each functional program within the District. Position Summary Schedule East Valley Water District continues to evaluate workforce needs to ensure all services are addressed by a high- quality workforce. Additionally, the District dedicated a significant amount of time and energy to succession planning and organizational assessment. These efforts identified an area of workforce need for FY 2017-18, which includes the addition of one full-time position, an Environmental Coordinator and a hiring hold for the Assistant General Manager position. The table on the following page summarizes the number of full-time personnel by Department. All authorized positions are funded in the proposed budget for FY 2017-18. Department Descriptions The District utilizes program-based budgeting. Requested funds are associated with the expected results and performance is measured by indicators and reviewed on a quarterly basis with the Governing Board. This results-oriented strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits. Program- based budgeting results can be used in cost- benefit analyses, just as it would be in a business environment to determine the value of decisions and enhance transparency. Program goals and objectives have been designed to correlate directly with the District’s newly FISCAL YEAR BUDGET 2017-201864 adopted vision, and are built from the agency ideals and organizational endeavors. Based on these goals and objectives, key performance indicators (KPI) monitor progress towards meeting program objectives. Each KPI has a target that provides users of the Budget to assess the Program’s performance overtime. Program-based budgeting also increases accountability and transparency as the ratepayers and Governing Board can more easily see where dollars are invested and monitor program effectiveness. Some KPIs are included to notate industry benchmarks to help staff understand the District’s performance in comparison to the water and wastewater industry. American Water Works Association (AWWA) standards help improve both operational efficiency and managerial effectiveness. The FY 2017-18 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance • Information Technology • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet MaintenanceFull Time Staffing Summary By Department DEPARTMENT FY 2015-16 ACTUAL FY 2016-17 BUDGET 2017-18 PROPOSED 2000 General Administration 4 4 3 2100 Human Resources 2 2 2 2200 Public Affairs 2.5 2.5 2.5 2300 Conservation 1.5 1.5 1.5 3000 Finance 7 7 7 3200 Information Technology 3 3 3 3300 Customer Service 8 8 7 3400 Meter Services 4 4 4 4000 Engineering 6 7 8 5000 Water Production 7 7 7 5100 Water Treatment 2 2 2 5200 Water Quality 2 2 2 6100 Water Maintenance 13 12 12 6200 Wastewater Maintenance 2 4 4 7000 Facilities Maintenance 1 1 1 7100 Fleet Maintenance 2 2 2 TOTAL 67 69 68 65EAST VALLEY WATER DISTRICT TOTAL AUTHORIZED POSITIONS 63FY 2012 63FY 2013 65FY 2014 66FY 2015 67FY 2016 69FY 2017 68FY 2018 FISCAL YEAR BUDGET 2017-201866 THIS PAGE IS LEFT BLANK INTENTIONALLY 67EAST VALLEY WATER DISTRICT GOVERNING BOARD Function The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four year staggered terms of office. Board members are responsible for serving as the organizational policy makers. The Governing Board appoints the General Manager/CEO to carry out the day-to-day District operations and implementation of adopted policies. goals and objectives GOAL ONE Provide Organization Direction and Set Expectations OBJECTIVES 1. Update District’s Strategic Plan. 2. Consider and Approve Program Goals and Objectives. 3. Review and Approve Administrative Policies. 4. Conduct General Manager/CEO and Board Member evaluations. GOAL TWO Increase Community Involvement OBJECTIVES 1. Continue communication training for outreach programs. 2. Attend community events on behalf of the District. GOAL THREE Address Agenda Items Brought Before the Board of Director’s Relating to the SNRC OBJECTIVES 1. Review and consider engineering reports relating to permitting. 2. Consider approval of funding agreements with the SWRCB. 3. Review and consider request for qualifications/request for proposal (RFQ/RFP) for design-build entity and other procurement related agenda items. GOAL FOUR Continue Efforts to Increase the District as a Regional Leader OBJECTIVES 1. Identify new opportunities to collaborate with regional entities. 2. Increase official roles in industry related organizations. 3. Actively participate in regional working groups. 4. Participate in professional development opportunities. FISCAL YEAR BUDGET 2017-201868 FY 2016-17 ACCOMPLISHMENTS • Created General Manager and Board of Directors evaluation policies • Implemented and conducted 360-degree evaluations of the Board of Directors • Participated in Board communication training • Held public hearing for wastewater treatment rate changes SIGNIFICANT CHANGES • Board of Directors election cycle moved from November of odd-numbered years to the statewide general election in November of even- numbered years LEVELS OF SERVICE The Governing Board has five KPI metrics that are associated with the District’s Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Services (I-A) • Maximize staff and Governing Board Capabilities through On-going Professional Development (II-D) • Practice Transparent and Accountable Fiscal Management (II-E) • Promote Community Involvement and Educational Opportunities (III-A) • Strengthen Regional, State and National Partnerships (III-B) The program’s performance related to these metrics are included in the following table. governing board program Program Personnel Governing Board Members 5 Elected Officials 5 The Governing Board is the District’s legislative body responsible for serving as the organizational policy makers. Governing Board Chairman Ratepayers Governing Vice Chairman Governing Board Members Designates Link to District’s Overall Organizational Structure Program Personnel 69EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Act on project related agenda items presented by staff 100%100%100%100% II-D Average number of professional development hours per Board Member 6 -6 6 II-E Schedule hearing and consider adjustments to rates, fees and charges recommended by staff Yes / 1 Yes / 1 Yes / 1 Yes / 1 III-A Submit all documentation by deadlines pursuant to transparency policies 100%100%100%100% III-B Attend regional and state meetings as representatives of EVWD 60 100 140 150 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 106,094 $ 105,000 $ 105,000 $ 105,000 $ - 0% 5200 Benefits 11,536 41,000 41,000 57,000 16,000 39% OPERATING EXPENSES 6201 Materials & Supplies - 1,000 1,000 1,000 - 0% 6301 Contract Services 75,525 10,000 10,000 10,000 - 0% 6307 Uniforms - 1,000 1,000 1,000 - 0% 6502 Professional Development 37,145 55,000 55,000 55,000 - 0% GOVERNING BOARD TOTAL $ 230,300 $ 213,000 $ 213,000 $ 229,000 $ 16,000 8% FISCAL YEAR BUDGET 2017-201870 THIS PAGE IS LEFT BLANK INTENTIONALLY 71EAST VALLEY WATER DISTRICT GENERAL ADMINISTRATION Function The General Manager/CEO is responsible for carrying out the day-to-day District operations and implementation of adopted policies. Additionally, administration is responsible for implementing the District’s vision and maintaining compliance with transparency regulations. goals and objectives GOAL ONE Provide Administrative Support to the Governing Board OBJECTIVES 1. Prepare, post and distribute accurate Open Meeting/Public Notices on or before statutory deadline. 2. Document the legislative actions taken by the Governing Board and Committees. GOAL TWO Reduce District Expenditures on Document Storage and Improve Records Management OBJECTIVES 1. Implement records retention policy across departments. 2. Review records retention and disposition schedules with each department & conduct periodic training with Administrative Assistants. 3. Reduce number of boxes requiring off-site storage. GOAL THREE Promote Environmental Stewardship OBJECTIVES 1. Provide alternative solutions for paper-intensive manuals and reduce the need for duplication of documents. 2. Encourage online subscriptions to agendas and notices. GOAL FOUR Implement Programs to Remain in Compliance With Public Record Requirements OBJECTIVES 1. Develop a policy for responding to Freedom of Information Act requests. 2. Implement a records request tracking system for compliance with AB 2853. 3. Evaluate the procedure for community members to submit online information requests. FISCAL YEAR BUDGET 2017-201872 FY 2016-17 ACCOMPLISHMENTS • Held 24 community conversations and public speaking engagements • Successful recruitment process for Engineering and Operations Manager • Enhanced Adopt-a-School program partnership with San Bernardino City Unified School District • Conducted periodic meetings with Administrative Assistants • Completed escrow on two parcels of land for the Sterling Natural Resource Center • Compiled historical documents and completed action plan for dissolution of City Creek Water Company • Prepared North Fork Water Company historical documents for public display • Documented original shareholders’ and successors of North Fork Water Company SIGNIFICANT CHANGES • Decreased Regular Labor and Benefits due to Assistant General Manager position vacancy LEVELS OF SERVICE The General Administration Program has four KPI metrics that are associated with the District’s Organizational Endeavors of: • Strive To Provide World Class Customer Relations (II-A) • Practice Transparent and Accountable Fiscal/ Administrative Management (II-E) • Support Ongoing Business Process Improvements (IV-A) The program’s performance related to these metrics are included in the following table. general administration program Program Personnel General Manager / CEO 1 District Clerk 1 Administrative Assistant 1 Total Full-Time 3 General Administration is Responsible for Overseeing the Day-to-Day District Operations General Manager/CEO Governing Board District Clerk Administrative Assistant Designates Link to District’s Overall Organizational Structure Program Personnel 73EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 II-A Make administrative documents available on-line 50 --10 II-E Publish Open Meeting/Public Notices on or before statutory requirement 100%100%100%100% IV-A Reduce number of boxes held in off-site storage 2,000 3,162 3,162 3,291 IV-A Encourage user subscriptions to receive electronic agenda notifications 220 -113 120 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 534,301 $ 651,000 $ 571,300 $ 486,000 $ (165,000)-25% 5103 Overtime 2,483 - - - - 0% 5200 Benefits 226,265 266,000 256,400 245,000 (21,000)-8% OPERATING EXPENSES 6201 Materials & Supplies 5,617 5,000 5,000 4,000 (1,000)-20% 6203 Office Supplies 3,317 5,000 5,000 4,000 (1,000)-20% 6301 Contract Services 142,022 146,000 187,600 194,000 48,000 33% 6303 Printing & Publishing 393 3,000 3,000 2,000 (1,000)-33% 6304 Legal Services 145,136 150,000 150,000 150,000 - 0% 6307 Uniforms - 1,000 500 1,000 - 0% 6402 Telephone 3,904 4,000 4,000 3,000 (1,000)-25% 6406 Postage - 1,000 500 - (1,000)-100% 6501 Membership & Dues 34,267 77,000 77,300 77,000 - 0% 6502 Professional Development 26,199 30,000 25,000 25,000 (5,000)-17% 6503 Education Assistance - - - - - 0% 6504 Meetings 6,416 10,000 10,000 10,000 - 0% GENERAL ADMIN. TOTAL $ 1,130,320 $ 1,349,000 $ 1,295,600 $ 1,201,000 $ (148,000)-11% FISCAL YEAR BUDGET 2017-201874 THIS PAGE IS LEFT BLANK INTENTIONALLY 75EAST VALLEY WATER DISTRICT HUMAN RESOURCES Function Human Resources is responsible for programs and operations related to personnel matters, including: • Personnel: recruitment, labor negotiations and ensure compliance with all state and federal laws • Worker’s Compensation: oversight of the District’s comprehensive Risk Management Program • Employee Services: management and administration of employee compensation, benefit plans and monitor labor agreements • Safety: ensure a safe work environment goals and objectives GOAL ONE Promote a Positive Organizational Culture that Holds Managers, Supervisors and Employees Accountable for Creating and Maintaining a Supportive and Encouraging Work Environment OBJECTIVES 1. Conduct annual employee engagement surveys and receive feedback from follow-up focus group meetings. 2. Create an action plan for the Leadership Team to address concerns presented during engagement focus group meetings. 3. Maintain non-retirement turnover of 7 percent or less. 4. Ensure 95 percent of employees receive performance appraisals on a timely basis. 5. Develop a 360-degree (multi-rater) performance appraisal for supervisors and managers to create a channel of open communication through feedback from supervisors, peers, and subordinates. GOAL TWO Enhance the District’s Wellness Initiatives to Help Promote Healthier Behaviors OBJECTIVES 1. Provide wellness information to employees through quarterly wellness articles, emails, and other communication methods. 2. Offer onsite body composition and routine health screenings to assist employees in meeting their health, fitness, and weight loss goals. 3. Encourage participation in District Wellness Programs such as the pre-shift stretching program and utilization of confidential EAP services. GOAL THREE Develop a Workforce Readiness Program to Enhance Employability Skills of Job Seekers in the Region OBJECTIVES 1. Establish partnerships with Inland Empire employers for collaboration on a Workforce Readiness Program. 2. Identify and define core competencies of a Workforce Readiness Program. FISCAL YEAR BUDGET 2017-201876 3. Develop a program curriculum incorporating core competencies and employability skills for workforce readiness. 4. Establish program eligibility criteria and a participant application. GOAL FOUR Implement the District’s Volunteer Program to Promote Community Involvement, Provide Work Experience Opportunities, and Offer Staff Assistance OBJECTIVES 1. Conduct departmental needs assessment to gain understanding of areas where volunteers could be utilized. 2. Identify three recruiting sources to attract volunteer applicants. 3. Interview and background screen volunteer applicants. 4. Provide orientation and training to all volunteers. FY 2016-17 ACCOMPLISHMENTS • Received the Top Workplace in the Inland Empire First Place Award by The Press Enterprise in Small Company Category • Received the Innovative Program/Project Award for Succession Planning from the California Special Districts Association (CSDA) • Presented the District’s Succession Plan at the 20th Annual Liebert Cassidy Whitmore Conference • Implemented Neogov automated recruitment solution • Implemented the Percentage Based Employer Contribution Plan • Created Recognition Committee and three new employee recognition programs • Represented staff formed the East Valley Water District Employee Partnership • Hired four EVWD team members • Processed seven Internal promotions human resources program Program Personnel Full-Time Human Resources/ Risk & Safety Manager 1 Senior Administrative Assistant 1 Total Full-Time 2 Part-Time Administrative Intern 0.5 Total Part-Time 0.5 Human Resources is Responsible for Personnel-Related Programs Human Resources/ Risk & Safety Manager General Manager/CEO Sr. Administrative Assistant Administrative Intern (PT) Designates Link to District’s Overall Organizational Structure Program Personnel 77EAST VALLEY WATER DISTRICT SIGNIFICANT CHANGES • Legal Services decreased due to reduced need for employee relations representation • Funds have been added to the Contract Services account to create a workforce readiness program and support employee wellness programs LEVELS OF SERVICE The Human Resources Program has five KPI metrics that are associated with the District’s Organizational Endeavors of: • Strive to Provide World Class Customer Relations (II-B) • Identify Strategies to Attract and Retain a High-Quality Workforce (II-C) • Promote Community Involvement and Educational Opportunities (III-A) • Encourage Performance Based Results through Staff Empowerment (IV-B) • Embrace an Environment of Active Learning and Knowledge Sharing (IV-D) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 II-B Maintain high level of employee participation in annual employee engagement survey 90%-91%93% II-C Percentage of annual non- retirement employee turnover <7%4.84%4.55%1.49% III-A Enrollment in District volunteer program 5 --- IV-B Annual performance appraisals completed in a timely manner 95%97%100%99% IV-D Employee utilization rate of District’s Employee Assistance Program >10%17%16%21% FISCAL YEAR BUDGET 2017-201878 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 202,203 $ 201,000 $ 201,000 $ 211,000 $ 10,000 5% 5102 Temporary Labor 8,326 12,000 12,000 12,000 - 0% 5103 Overtime 2,836 3,000 3,000 3,000 - 0% 5200 Benefits 86,707 84,000 104,000 100,000 16,000 19% OPERATING EXPENSES 6201 Materials & Supplies 2,253 4,000 4,000 18,000 14,000 350% 6203 Office Supplies 1,026 3,000 3,000 2,000 (1,000)-33% 6301 Contract Services 56,179 70,000 68,300 68,000 (2,000)-3% 6303 Printing & Publishing 860 1,000 1,000 1,000 - 0% 6304 Legal Services 29,350 25,000 25,000 20,000 (5,000)-20% 6406 Postage 254 1,000 1,000 1,000 - 0% 6501 Membership & Dues 2,349 5,000 5,000 5,000 - 0% 6502 Professional Development 7,488 10,000 10,000 10,000 - 0% 6504 Meetings 4,699 5,000 5,000 5,000 - 0% 6505 Employee Recognition 12,991 14,000 14,000 19,000 5,000 36% 6701 General Insurance 188,321 175,000 175,000 210,000 35,000 20% 6702 Insurance Claims 2,034 2,000 2,000 10,000 8,000 400% 6705 Retiree Benefits 148,848 120,000 120,000 150,000 30,000 25% HUMAN RESOURCES TOTAL $ 756,724 $ 735,000 $ 753,300 $ 845,000 $ 110,000 15% 79EAST VALLEY WATER DISTRICT PUBLIC AFFAIRS Function Public Affairs oversees internal and external communication programs consistent with the District’s vision. Through media, community and governmental relations, the District is able to provide effective communications to various stakeholders. goals and objectives GOAL ONE Identify and Implement Additional Outreach Efforts that Support the District’s Brand and Further Develops Community Presence OBJECTIVES 1. Outline a communications plan for short-term and long-term projects/programs. 2. Revise internal and external documents by incorporating the District’s style guide and branding efforts. 3. Develop a brand adherence and standards training program for the delivery of consistent messaging in visual and written formats. GOAL TWO Enhance Customer-Focused Outreach Efforts that Cultivate Relationships and Strengthen the District’s Presence in the Community OBJECTIVES 1. Identify speaking engagements and presentation opportunities with community groups at local events for staff and Board Members. 2. Increase social media engagement and increase the overall number of followers. 3. Develop methods to increase internal communication of District projects/programs. GOAL THREE Maintain the District’s emergency Preparedness Standards in Order to Effectively Respond in a Disaster or Emergency OBJECTIVES 1. Identify all documents regarding emergency preparedness and business continuity and establish a schedule for reviewing and updating the procedures. 2. Complete a full scale exercise that includes local agencies participation in how to respond to a disaster. 3. Host trainings available to local agencies that increase emergency preparedness awareness. FISCAL YEAR BUDGET 2017-201880 2016-17 ACCOMPLISHMENTS • Received Special Purpose Publication Award of Distinction for Transitioning to Budget Based Rates from the California Association of Public Information Officers (CAPIO) Excellence in Communications Awards • Hosted two large community events for the Sterling Natural Resource Center, tours to the Anaheim Water Recycling Demonstration Facility, and extensive outreach effort to engage various stakeholders in the project • The District hosted quarterly emergency preparedness activities to increase staff’s awareness of procedures and implemented adjustments as necessary • Participated in the modification of legislation to incorporate the District’s input regarding drought response and sub-metering • The District created 12 videos to highlight operations, which are available to view 24-hours a day SIGNIFICANT CHANGES • Sterling Natural Resource Center outreach efforts have been moved to the Project Account • Printing and Publishing accounted for additional printing items that are new to this fiscal year • Meals for events were previously charged to Materials and Supplies and will now be charged to Meetings LEVELS OF SERVICE The Public Affairs Program has five KPI metrics that are associated with the District’s Organizational Endeavors of: • Enhance Emergency Preparedness Programs (I-C) • Promote Community Involvement and Educational Opportunities (II-E) • Utilize Innovative Communication Methods (III-C) The program’s performance related to these metrics are included in the following table. public affairs program Program Personnel Full-Time Public Affairs/ Conservation Manager 0.5 Public Affairs Specialist 1 Senior Administrative Assistant 1 Total Full-Time 2.5 Part-Time Public Affairs Event Coordinator 0.5 Public Affairs Representative 0.5 Total Part-Time 1 Public Affairs Oversees Internal and External Communication Programs Public Affairs Specialist Public Affairs Events Coordinator (PT) Sr. Administrative Assistant Public Affairs Representative (PT) Public Affairs/ Conservation Manager General Manager/CEO Designates Link to District’s Overall Organizational Structure Program Personnel 81EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-C Update Emergency Response Plan 100%75%75%100% I-C Number of Emergency Response training hours per FTE 16 2 5 8 II-E Number of community event presentations 15 12 14 18 II-E Number of Community Advisory Commission meetings conducted 6 --3 III-C Number of followers on social media 100 32 244 190 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 262,124 $ 296,000 $ 278,100 $ 347,000 $ 51,000 17% 5102 Temporary Labor 3,888 - - - - 0% 5103 Overtime 6,891 7,000 7,000 7,000 - 0% 5200 Benefits 66,614 106,000 97,631 129,000 23,000 22% OPERATING EXPENSES 6201 Materials & Supplies 32,335 158,000 157,500 70,000 (88,000)-56% 6203 Office Supplies 3,416 7,000 6,500 7,000 - 0% 6301 Contract Services 65,674 348,000 43,070 147,000 (201,000)-58% 6303 Printing & Publishing 48,378 46,000 46,000 41,000 (5,000)-11% 6304 Legal Services 2,016 5,000 5,000 5,000 - 0% 6307 Uniforms - 2,000 2,000 3,000 1,000 50% 6312 Janitorial Services - - - 10,000 10,000 100% 6402 Telephone 1,897 3,000 3,000 3,000 - 0% 6406 Postage 11,755 20,000 20,000 32,000 12,000 60% 6501 Membership & Dues 1,903 4,000 3,769 4,000 - 0% 6502 Professional Development 5,690 11,000 10,500 11,000 - 0% 6503 Education Assistance - 2,000 2,400 2,000 - 0% 6504 Meetings - 3,000 3,000 10,000 7,000 233% PUBLIC AFFAIRS TOTAL $ 512,581 $ 1,018,000 $ 685,470 $ 828,000 $ (190,000)-19% FISCAL YEAR BUDGET 2017-201882 THIS PAGE IS LEFT BLANK INTENTIONALLY 83EAST VALLEY WATER DISTRICT CONSERVATION Function Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies. goals and objectives GOAL ONE Maintain Compliance with Water Conservation Standards Established by the State Water Resources Control Board (SWRCB) OBJECTIVES 1. Submit a completed and Level 1 validated water loss audit. 2. Meet conservation reduction goal established by the SWRCB. 3. Remain actively engaged in the legislative process relating to water use regulations. GOAL TWO Continue Water Conservation Outreach with the Community to Encourage Continued Water Use Efficiency OBJECTIVES 1. Develop a pilot program for students at Beattie Middle School that incorporates the CIMIS station. 2. Create a program that will increase attendance at the District’s demonstration garden. 3. Identify District programs that can cross promote conservation. GOAL THREE Evaluate and Measure the Success of Rebate Programs and Make Recommendations for Improvements OBJECTIVES 1. Assess the success of the rebate programs. 2. Develop a conservation action plan to encourage water efficiency through the different stages of drought. 3. Develop an outreach effort to follow up with customers who have participated in the District’s rebate programs. FISCAL YEAR BUDGET 2017-201884 2016-17 ACCOMPLISHMENTS • Received the Polaris Award for Drought Campaign Community Relations from the Public Relations Society of America Inland Empire Chapter (PRSAIE) • Coordinated drought response, including regulations, reporting, community education, workshops, print materials, and staff training • Oversaw the installation and ribbon cutting of the CIMIS weather station • Participated in the Headquarters Demonstration Garden renovation to expand the design options and potential plant material that can be used for water efficient landscaping SIGNIFICANT CHANGES • Due to the decreased drought severity, the part time Conservation Representative position has been eliminated • Due to reduced interest in conservation program, the rebate program budget has been reduced LEVELS OF SERVICE The Conservation Program has four KPI metrics that are associated with the District’s Organizational Endeavors of: • Manage and Identify Methods to Conserve Natural Resources (I-B) • Utilize Innovative Communication Methods (III-C) • Pursue Alternative Funding Sources (IV-C) The program’s performance related to these metrics are included in the following table. conservation program Program Personnel Full-Time Public Affairs/ Conservation Manager 0.5 Conservation Coordinator 1 Total Full-Time 1.5 Conservation Encourages Sustainable Water Use Public Affairs/ Conservation Manager General Manager/CEO Conservation Coordinator Designates Link to District’s Overall Organizational Structure Program Personnel 85EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-B Meet SWRCB conservation goal Yes Yes Yes Yes I-B Maintain significant level of participation in annual conservation rebate programs 300 -902 400 III-C Number of educational materials created 100 20 102 275 IV-C External conservation funding received $ 25,000 $ 50,000 $ 265,729 $ 40,123 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 210,956 $ 102,000 $ 198,200 $ 98,000 $ (4,000)-4% 5102 Temporary Labor 8,332 - - - - 0% 5103 Overtime 5,037 8,000 8,000 8,000 - 0% 5200 Benefits 55,873 31,000 39,814 32,000 1,000 3% OPERATING EXPENSES 6201 Materials & Supplies 8,861 20,000 20,000 20,000 - 0% 6203 Office Supplies 1,994 4,000 3,880 3,000 (1,000)-25% 6205 Conservation Rebates 1,649,011 500,000 500,000 200,000 (300,000)-60% 6301 Contract Services 77,978 221,000 220,156 135,000 (86,000)-39% 6303 Printing & Publishing 49,182 80,000 80,000 50,000 (30,000)-38% 6304 Legal Services 594 1,000 1,000 1,000 - 0% 6307 Uniforms - 1,000 1,000 1,000 - 0% 6402 Telephone 943 1,000 1,100 1,000 - 0% 6406 Postage 16,511 40,000 40,000 20,000 (20,000)-50% 6501 Membership & Dues 1,521 2,000 1,500 2,000 - 0% 6502 Professional Development 3,301 7,000 6,500 2,000 (5,000)-71% 6504 Meetings - 3,000 3,000 2,000 (1,000)-33% CONSERVATION TOTAL $ 2,090,094 $ 1,021,000 $ 1,124,150 $ 575,000 $ (446,000)-44% FISCAL YEAR BUDGET 2017-201886 THIS PAGE IS LEFT BLANK INTENTIONALLY 87EAST VALLEY WATER DISTRICT FINANCE & ACCOUNTING Function Finance and accounting oversees the business operations of the District in order to provide accountability and adequate control over the use of District funds. Staff maintains the financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations and District policies. goals and objectives GOAL ONE Enhance Accounting Support and Financial Reporting to Internal and External Customers OBJECTIVES 1. Complete monthly financial reports within 40 days of month end for presentation to Board and public (online). 2. Submit CAFR and annual budget for GFOA award consideration. 3. Complete Popular Annual Financial Report (year in review) for public distribution. GOAL TWO Engage the Community and Management in Planning for, and Compliance with, District Authorized Use of Public Funds OBJECTIVES 1. Update the District’s Long Term Financial Plan to assist in establishing District priorities. 2. Complete program goals, revenue projection, and proposed spending plan workshops at least 30 days prior to fiscal year end. 3. Present quarterly budget updates to the Board within 30 days or quarter end. GOAL THREE Maintain Strong Financial Policies and Management Practices to Safeguard the District’s Financial Position and Reduce Cost of Borrowing OBJECTIVES 1. Update all District fiscal policies and review with Board of Directors on a 3-year cycle. 2. Create written procedures manuals for daily accounting functions. 3. Budget to build adequate replacement reserves in appropriate program budgets. GOAL FOUR Leverage Technology for Efficient, Economic and Innovative Service Delivery OBJECTIVES 1. Associate infrastructure fixed asset costs recorded in the District financial system with digitized maps of District infrastructure in GIS. FISCAL YEAR BUDGET 2017-201888 2016-17 ACCOMPLISHMENTS • Received GFOA Distinguished Budget Award for FY 2016-17 Budget • Received GFOA Certificate of Achievement for Excellence in Financial Reporting for FY 2015-16 • Updated Two Fiscal Policies • Issued RFP for Financial Auditing Services • Completed audit and presented CAFR to Board within 118 days of year end • Issued Federal 1099 forms to participants in District conservation rebate programs SIGNIFICANT CHANGES • Legal services have increased to pay for legal review of the Cost of Service Analysis to be conducted for wastewater services • Temporary labor has been increased to provide departmental support until the vacant Accounting Technician position can be filled LEVELS OF SERVICE The Finance and Accounting Program has five KPI metrics that are associated with the District’s Organizational Endeavors of: • Practice Transparent and Accountable Fiscal Management (II-E) • Support On-going Business Process Improvements (IV-A) • Encourage Performance Based Results through Staff Empowerment (IV-B) The program’s performance related to these metrics are included in the following table. finance and accounting program Administrative Assistant Accountant Business Services Manager Sr. Accounting Technician Storekeeper/ Buyer Accounting Technician Chief Financial Officer General Manager/CEO Program Personnel Chief Financial Officer 1 Business Services Manager 1 Accountant 1 Senior Accounting Technician 1 Accounting Technician 1 Administrative Assistant 1 Storekeeper/Buyer 1 Total Full-Time 7 Finance and Accounting Provides Transparent and Responsible Oversight of District Funds Designates Link to District’s Overall Organizational Structure Program Personnel 89EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 II-E Timely complete audit and present CAFR – within target after fiscal year end 135 212 162 118 II-E Maintain adequate reserves and strong fiscal policies to enhance bond rating AA AA-AA-AA- II-E Number of fiscal policies reviewed with the Board each year 4 1 2 4 IV-A Convert vendor payments from paper check to electronic fund transfers (EFT)80%21%42%60% IV-B Conduct quarterly budget meetings with program managers to discuss budget variances 12 0 12 12 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 634,524 $ 640,000 $ 680,000 $ 678,000 $ 38,000 6% 5102 Temporary Labor 35,804 14,000 14,400 - (14,000)-100% 5103 Overtime 6,613 3,000 3,000 10,000 7,000 233% 5200 Benefits 261,925 255,000 254,295 287,000 32,000 13% OPERATING EXPENSES 6203 Office Supplies 9,653 6,000 6,050 11,000 5,000 83% 6301 Contract Services 57,194 83,000 153,505 82,000 (1,000)-1% 6302 Banking Services 11,572 20,000 19,600 20,000 - 0% 6303 Printing & Publishing - - 100 1,000 1,000 100% 6304 Legal Services 28,222 35,000 35,000 60,000 25,000 71% 6307 Uniforms 1,678 3,000 3,000 3,000 - 0% 6402 Telephone 2,387 3,000 3,000 3,000 - 0% 6406 Postage 76 1,000 1,000 1,000 - 0% 6501 Membership & Dues 1,897 4,000 3,600 4,000 - 0% 6502 Professional Development 18,076 16,000 - 17,000 1,000 6% 6503 Education Assistance - - - - - 0% 6504 Meetings - 4,000 - 4,000 - 0% 6704 Bad Debt 337 1,000 - 1,000 - 0% FINANCE & ACCT. TOTAL $ 1,069,958 $ 1,088,000 $ 1,176,550 $ 1,182,000 $ 94,000 9% FISCAL YEAR BUDGET 2017-201890 THIS PAGE IS LEFT BLANK INTENTIONALLY 91EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY INFORMATION TECHNOLOGY Function Information Technology (IT) is responsible for the strategic alignment of technology with the District’s initiatives. Staff maintains the enterprise systems, network, cybersecurity, and computer hardware. goals and objectives GOAL ONE Improve Cybersecurity Resiliency to Mitigate Vulnerabilities and Threats OBJECTIVES 1. Develop a strategic approach towards cybersecurity with a comprehensive Cybersecurity Plan. 2. Conduct network penetration testing to identify security flaws and understand the District’s level of risk. 3. Implement a Mobile Device Management program to secure the increasing number of mobile devices. 4. Continue anti-phishing email campaigns to elevate staff’s cybersecurity awareness. GOAL TWO Assess and Evaluate Existing Technology Solutions to Improve Operations OBJECTIVES 1. Leverage existing features from Microsoft Office 365 to enhance communications and collaboration. 2. Improve accuracy of information by utilizing the business intelligence platform to create data quality control dashboards. 3. Conduct an audit of all communications lines to reduce operational costs. 4. Assess Help Desk operations and apply necessary changes to adhere to IT Service Management best practices. GOAL THREE Improve Technology Infrastructure for Reliable and Redundant Services OBJECTIVES 1. Increase data storage capacity for high-performance services and implement a tiered storage strategy for cost efficiency. 2. Improve business continuity by implementing an Internet failover link. 3. Modernize the GIS architecture to support future growth with virtualization technology and industry best practices. FISCAL YEAR BUDGET 2017-201892 2016-17 ACCOMPLISHMENTS • Improved document management by upgrading Laserfiche and implementing Tyler Content Manager • Completed the setup for the District’s Learning Lab and introduced Lynda.com • Increased staff mobility by deploying 9 Microsoft Surface Pros to field staff • Enhanced collaboration and knowledge sharing with Team Sites (Intranet) to manage the AMI, Business Intelligence and Water Audit projects • Upgraded and increased number of surveillance cameras at Headquarters • Elevated staff awareness of cybersecurity by launching anti-phishing email campaigns. • Increased service availability to customers by adding two additional lines to the Pay-by-Phone system • Operational efficiency has increased for IT staff with automated monitoring of over 1,000 devices/services • Enhanced mobility, efficiency, and communications by deploying 12 Microsoft Surface Pro devices to field staff SIGNIFICANT CHANGES • Contract Services has increased due to new services that include advanced email security, mobile device management, and Power BI. • Maintenance and support agreements have increased by utilizing 3-year cycles to reduce long-term costs. • One-time projects have increased Contract Services. Projects include Cybersecurity Plan, network penetration testing, and re-architecture of GIS platform. LEVELS OF SERVICE The Information Technology Program has five KPI metrics that are associated with the District’s Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Service (I-A) • Strive to Provide World Class Customer Relations (II-A) • Dedicate Effort Toward System Maintenance and Modernization (I-D) The program’s performance related to these metrics are included in the following table. information technology program Program Personnel Information Technology Manager 1 Network Administrator 1 Information Systems Technician 1 Total Full-Time 3 IT is Responsible for District Technology and Software Programs Information Technology Manager Chief Financial Officer Network Administration Information Systems Technician Designates Link to District’s Overall Organizational Structure Program Personnel 93EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 140 --1,611 I-A Maximize system availability 99%99%99%99% II-A Receive ‘excellent’ scores on IT satisfaction surveys submitted by staff >95%99%-90% II-A Minimize resolution time for help desk issues submitted by staff 24 Hrs 6.8 12 10.2 I-D Complete all current year project listed in the IT strategic plan 100%100%90%100% PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 294,528 $ 290,000 $ 290,000 $ 313,000 $ 23,000 8% 5102 Temporary Labor - - - - - 0% 5103 Overtime - - - - - 0% 5200 Benefits 93,385 104,000 103,980 129,000 25,000 24% OPERATING EXPENSES 6201 Materials & Supplies 44,916 30,000 30,000 36,000 6,000 20% 6203 Office Supplies 482 - - - - 0% 6301 Contract Services 280,733 321,000 321,000 461,000 140,000 44% 6307 Uniforms - 1,000 500 1,000 - 0% 6402 Telephone 4,806 5,000 4,960 6,000 1,000 20% 6503 Education Assistance - - - 5,000 5,000 100% 6501 Membership & Dues 822 6,000 5,660 6,000 - 0% 6502 Professional Development 7,533 14,000 13,700 1,000 (13,000)-93% 6504 Meetings - 3,000 2,500 5,000 2,000 67% IT TOTAL $ 727,205 $ 774,000 $ 772,300 $ 963,000 $ 189,000 24% FISCAL YEAR BUDGET 2017-201894 THIS PAGE IS LEFT BLANK INTENTIONALLY 95EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY CUSTOMER SERVICE Function Customer Service provides the community with prompt, courteous and world class customer relations. As the primary contact point with residents, this program explores opportunities to provide convenient methods of payment and strives to resolve customer concerns. goals and objectives GOAL ONE Strive to Provide World Class Customer Service OBJECTIVES 1. Attend customer service training to continuously improve on the guest experience. 2. Conduct customer satisfaction surveys. 3. Contact customers with high usage to discuss possible leaks prior to sending out bills. 4. Enhance customer convenience through offering of remote payment options. 5. Collaborate with Public Affairs to produce educational videos regarding Customer Service processes. GOAL TWO Improve Departmental / Customer Processes OBJECTIVES 1. Streamline process for final review of disconnection list to allow field staff adequate time to perform required service disconnections / reconnections. 2. Strive to keep accounts current through courtesy calls and final notices to reduce service disconnections for non- payment. 3. Conduct random audits of customer accounts to determine customer classification, bill codes, and data accuracy. GOAL THREE Practice Prudent Fiscal Management OBJECTIVES 1. Present options for cost recovery of electronic payment merchant fees. 2. Increase utilization of paperless billing. 3. Increase utilization of Pre-Authorized payment bill collection method. FISCAL YEAR BUDGET 2017-201896 2016-17 ACCOMPLISHMENTS • Employed new off-site payment center option • Increased customer communication by adding a second automated reminder call • Implemented new application process • Established an action plan to reduce phone calls by tracking number and types of calls • Implemented Tyler Content Manager for Retention Policy Application SIGNIFICANT CHANGES • Final notices and disconnections have been reduced as a result of the automated courtesy calls • Rents and leases were reduced to reflect savings from removing payment kiosks and replacing them with a more cost effective offsite payment center solution LEVELS OF SERVICE The Customer Service Program has six KPI metrics that are associated with the District’s Organizational Endeavors of: • Strive to Provide World Class Customer Relations (II-A) • Maximize Staff Capabilities through On-going Professional Development (II-C) • Support On-going Business Process Improvements (IV-A) The program’s performance related to these metrics are included in the following table. customer service program Sr. Customer Service Representative Customer Service Representative II (2) Customer Service Representative III Customer Service Representative I Receptionist Customer Service Supervisor Chief Financial OfficerProgram Personnel Customer Service Supervisor 1 Sr. Customer Service Rep 1 Customer Service Rep III 1 Customer Service Rep II 2 Receptionist 1 Total Full-Time 7 Customer Service Provides the Community with World Class Community Relations Designates Link to District’s Overall Organizational Structure Program Personnel 97EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 II-A Reduce number of customers disconnected for non-payment each year 1,800 3,037 2,825 2,437 II-A Encourage completion of Customer Satisfaction Surveys to better understand customer concerns 120 --45 II-A Number of customer payments received through convenient off-site locations 10,000 6,158 6,500 7,500 II-C Number of customer service training hours per employee 16 -6 7 IV-A Customers enrolled in paperless billing 2,000 1,200 1,250 1,300 IV-A Customers enrolled in the Pre- Authorized Payment Plan (auto-debit)2,000 1,484 1,550 1,632 FISCAL YEAR BUDGET 2017-201898 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 440,047 $ 483,000 $ 463,200 $ 472,000 $ (11,000)-2% 5102 Temporary Labor 21,510 3,000 3,000 3,000 - 0% 5103 Overtime 4,271 5,000 5,000 5,000 - 0% 5200 Benefits 188,743 234,000 233,480 242,000 8,000 3% OPERATING EXPENSES 6201 Materials & Supplies 4,352 3,000 2,500 8,000 5,000 167% 6203 Office Supplies 6,894 3,000 3,380 4,000 1,000 33% 6301 Contract Services 78,413 74,000 63,490 111,000 37,000 50% 6302 Banking Services 240,634 295,000 294,831 303,000 8,000 3% 6303 Printing & Publishing - 4,000 4,485 5,000 1,000 25% 6304 Legal Services 652 5,000 5,000 5,000 - 0% 6306 Rents & Leases 11,000 12,000 12,000 - (12,000)-100% 6307 Uniforms 12,714 8,000 8,400 6,000 (2,000)-25% 6308 Billing Services 47,086 52,000 51,600 52,000 - 0% 6309 Shut Off Notice Services 345,322 378,000 378,000 359,000 (19,000)-5% 6402 Telephone 1,105 2,000 1,640 6,000 4,000 200% 6406 Postage 134,646 151,000 151,000 151,000 - 0% 6502 Professional Development 5,552 14,000 13,934 14,000 - 0% 6503 Education Assistance 283 3,000 3,120 1,000 (2,000)-67% 6504 Meetings - 1,000 1,120 2,000 1,000 100% 6703 Cash Over/Short 715 - - - - 0% CUSTOMER SERVICE TOTAL $ 1,543,939 $ 1,730,000 $ 1,699,180 $ 1,749,000 $ 19,000 1% 99EAST VALLEY WATER DISTRICT METER SERVICES Function Meter Services is responsible for on-site customer meter-related requests, including meter reading and customer service assistance work orders. goals and objectives GOAL ONE Develop Employee Knowledge and Skills Using the New AMI Meter Reading Equipment and Processes OBJECTIVES 1. Provide training on the new AMI system, including the meters in the field and the computer program. 2. Obtain education to provide useful feedback to customers on the benefits of AMI. 3. Work with Engineering on the future phases of the AMI project to complete the entire District. GOAL TWO Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation OBJECTIVES 1. Document meter lid sizes in order to facilitate ordering for future phases. 2. Identify and document concerns with existing meter locations and resolve any issues prior to the account being scheduled for an AMI installation. GOAL THREE Provide Highly Professional and Timely Response to Requests for On-site Customer Service Requests OBJECTIVES 1. Respond to customer requests for service as quickly as possible, within two hours. 2. Empower employees to be flexible, make decisions and have the confidence to go above and beyond for customers. FISCAL YEAR BUDGET 2017-2018100 2016-17 ACCOMPLISHMENTS • Meter readers completed training to perform Customer Services duties • Completed commercial driver’s training so meter readers can test for class B license • Trained meter readers on new hand held device for the AMI project • Responded to all customer requests under two hours • Completed cross-training with Customer Service SIGNIFICANT CHANGES • One-Third of the District has been Converted to the New AMI Platform LEVELS OF SERVICE The Meter Service Program has two KPI metrics that are associated with the District’s Organizational Endeavors of: • Strive to Provide World Class Customer Relations (II-A) • Support On-going Business Process Improvement (IV-A) The program’s performance related to these metrics are included in the following table. meter services program Program Personnel Meter Reader II 1 Meter Reader I 3 Total Full-Time 4 Meter Services Serves as a Field Extension of Customer Service Meter Reader II Operations Manager Meter Reader I (3) Designates Link to District’s Overall Organizational Structure Program Personnel 101EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 II-A Respond to customer requests for assistance within 2 hours 100%100%100%100% IV-A Number of employees trained on the AMI project 4 -4 4 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 201,875 $ 210,000 $ 209,800 $ 228,000 $ 18,000 9% 5103 Overtime 11,257 20,000 20,000 20,000 - 0% 5200 Benefits 86,437 104,000 104,200 135,000 31,000 30% OPERATING EXPENSES 6201 Materials & Supplies 387 3,000 3,000 3,000 - 0% 6202 Tools 773 1,000 1,000 1,000 - 0% 6301 Contract Services 5,025 5,000 5,000 5,000 - 0% 6307 Uniforms 4,726 3,000 3,000 3,000 - 0% 6402 Telephone 1,248 2,000 2,000 2,000 - 0% 6502 Professional Development - - - - - 0% METER SERVICES TOTAL $ 311,728 $ 348,000 $ 348,000 $ 397,000 $ 49,000 14% FISCAL YEAR BUDGET 2017-2018102 THIS PAGE IS LEFT BLANK INTENTIONALLY 103EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY ENGINEERING Function Engineering is responsible for planning and overseeing infrastructure projects designed to maintain safe and reliable water and wastewater services. Staff manages the capital improvement program, coordinates with new development, and provides technical support for the infrastructure system. goals and objectives GOAL ONE Provide Leadership in the Development and Implementation of the District’s CIP and Maintain Compliance with the SWRCB OBJECTIVES 1. Construct water main replacement projects on Dwight and Glasgow Streets. 2. Design and construct Plant 134 transmission main to supply west side of service area. 3. Complete design of Canal 3 Zone reservoir and booster station project. 4. Update Wastewater Model to identify wastewater service areas within District not currently tributary to SNRC. 5. Update Water Master Plan and Water Model. GOAL TWO Foster Partnership Opportunities with Surrounding Agencies and Other Stakeholders to Provide Benefits to the District and the Region OBJECTIVES 1. Foster relationships with outside jurisdictional agencies to ensure uniform development review process. 2. Fund District participation in regional Wash Plan and HCP. 3. Incorporate Valley District conjunctive use well project into EVWD water supply planning efforts. 4. Partner with developers on site selection and sizing of Mountain zone reservoir. GOAL THREE Implement Modernization Updates Using Programs and/ or Software to Track Customer Service Efficiency OBJECTIVES 1. Develop standard specifications and bid documents for use with CIP projects. 2. Create standard format for use in processing progress payments for CIP projects. 3. Develop organized filing system structure for all engineering documents and drawings. 4. Create and implement tracking system to ensure timely response to requests from development community. FISCAL YEAR BUDGET 2017-2018104 2016-17 ACCOMPLISHMENTS • Implemented AMI Meter Retrofit Program – Phase 1 • Completed Pumalo Road water line replacement • Wastewater capacity improvements performed on Church Street and Whitlock Avenue • Completed rehabilitation of 10 manholes on Valaria Drive • 30” diameter section of North Fork Santa Ana River pipeline replaced • Repaired North Fork Pipeline at Plunge Creek • Wastewater and water plan reviews for the Diversified Pacific Development finalized • City Creek Manhole Environmental process completed and jurisdictional permits acquired • 7,100 meter updates for AMI logged into GIS • Completed Paloma Road wastewater rehabilitation • Canal Zone Reservoir located, selected and property acquisition in process • Developer Handbook updated • EVWD Standard Drawings and Standard Specifications updated SIGNIFICANT CHANGES • Increased number of Capital Improvement Projects completed using in-house design • Initiated Training for Inspection Services Staff • Added Environmental Coordinator position to ensure the protection of natural resources during the construction and operation of the Sterling Natural Resource Center LEVELS OF SERVICE The Engineering Department has five KPI metrics that are associated with the District’s Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Service (I-A) • Dedicate Effort towards System Maintenance and Modernization (I-D) • Strive to Provide World Class Customer Relations (II-A) engineering program Sr. Administrative Assistant Sr. Engineering Technician Associate Engineer Engineering Technician II (2) Construction Project Coordinator Environmental Coordinator Director of Engineering & Operations General Manager/CEOProgram Personnel Director of Engineering & Operations 1 Associate Engineer 1 Environmental Coordinator 1 Construction Project Coordinator 1 Sr. Engineering Technician 1 Engineering Technician II 1 Sr. Administrative Assistant 1 Total Full-Time 8 Engineering Implements Infrastructure Projects Needed to Provide Safe & Reliable Services Designates Link to District’s Overall Organizational Structure Program Personnel 105EAST VALLEY WATER DISTRICT The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Initiate fully funded projects included in the current year CIP 100%75%80%100% I-D Complete current year updates to GIS base maps 100%--25% I-D Connect parcels utilizing septic tanks to the District’s sanitary wastewater system 1,140 1 1 2 II-A Compete developer infrastructure project plan reviews in <14 days 100%--100% II-A Issue development impact fee costs estimates in <2 days 100%100%100%100% PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 688,047 $ 549,000 $ 599,000 $ 712,000 $ 163,000 30% 5102 Temporary Labor - - - - - 0% 5103 Overtime 1,552 2,000 1,500 2,000 - 0% 5200 Benefits 216,280 272,000 272,000 350,000 78,000 29% OPERATING EXPENSES 6201 Materials & Supplies 2,310 10,000 10,000 10,000 - 0% 6202 Tools 3,911 4,000 4,000 7,000 3,000 75% 6203 Office Supplies 7,623 9,000 9,200 7,000 (2,000)-22% 6301 Contract Services 183,829 200,000 160,300 238,000 38,000 19% 6303 Printing & Publishing - 3,000 3,000 3,000 - 0% 6304 Legal Services 37,394 15,000 50,000 40,000 25,000 167% 6307 Uniforms 2,020 5,000 5,000 5,000 - 0% 6402 Telephone 3,386 2,000 2,000 2,000 - 0% 6405 Permits 28,287 120,000 120,000 120,000 - 0% 6406 Postage 24 1,000 1,000 1,000 - 0% 6501 Membership & Dues 642 2,000 2,000 3,000 1,000 50% 6502 Professional Development 11,139 22,000 21,900 24,000 2,000 9% 6504 Meetings - 3,000 3,000 3,000 - 0% ENGINEERING TOTAL $ 1,186,444 $ 1,219,000 $ 1,263,900 $ 1,527,000 $ 308,000 25% FISCAL YEAR BUDGET 2017-2018106 THIS PAGE IS LEFT BLANK INTENTIONALLY 107EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WATER PRODUCTION Function Water Production is responsible for the daily monitoring and operations of the entire water production system. This program ensures the timely preventative maintenance of all pumps and motors for wells and boosters. Staff also operates the North Fork Canal System. goals and objectives GOAL ONE Ensure System Reliability Through Routine System Inspections and Testing OBJECTIVES 1. Maintain routine inspection program for all District water storage reservoirs. 2. Incorporate projects identified by inspections into District CIP. GOAL TWO Continue to Evaluate SCADA and Implement Improvements as Appropriate OBJECTIVES 1. Coordinate software updates with SCADA contractor to maximize program capabilities. 2. Explore maintenance contract options to improve SCADA performance. GOAL THREE Partner with Southern California Edison to Identify and Utilize Equipment Rehabilitation Incentives OBJECTIVES 1. Utilize SCADA technology to run plants during the most cost efficient time of day. 2. Participate in as many of Southern California Edison’s Demand Bidding events as possible. 3. Coordinate pump efficiency incentive programs with Southern California Edison account representative. FISCAL YEAR BUDGET 2017-2018108 2016-17 ACCOMPLISHMENTS • Implemented a Cla-Val (pressure regulator) maintenance program that was introduced in the Leadership Academy • Initiated a reservoir inspection/diving schedule • Repurposed an electrical transfer switch at Plant 151, which allows a connection to an emergency backup generator • Coordinated with Supervisory Control and Data Acquisition (SCADA) integrator to assess current and future needs • Participated in numerous Southern California Edison energy reduction programs • Completed a Sanitary Survey in coordination with SWRCB SIGNIFICANT CHANGES • Added a Meetings budget that did not exist last fiscal year • Increased Contract Services for maintenance and verification for the Honeywell Project • Increased SCADA support 17% to update software • Decreased Water Assessments on North Fork shares from $43 to $23 per share • Purchased 30 Bear Valley shares and is included in Water Assessments • Decreased Regular Labor and Benefits due to Water Production Operator III retirement at the end of last fiscal year; backfilled with a Water Production Operator I LEVELS OF SERVICE The Water Production Program has five KPI metrics that are associated with the Districts Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Services (I-A) • Enhance Emergency Preparedness Programs (I-C) • Dedicate Effort Towards System Maintenance and Modernization (I-D) The program’s performance related to these metrics are included in the following table. water production program Program Personnel Operations Manager 1 Senior Water Production Operator 1 Water Production Operator III 4 Administrative Assistant 1 Total Full-Time 7 Water Production is Responsible for Monitoring and Operating the Entire Water System Administrative Assistant Sr. Production Operator Water Production Supervisor Water Production Operator III (3) Water Production Operator I Operations Manager Director of Engineering & Operations Designates Link to District’s Overall Organizational Structure Program Personnel 109EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Contract for yearly reservoir inspections 4 2 4 4 I-A Perform or schedule repairs recommended by inspection reports 100%100%100%100% I-C Participate in Southern California Edison demand bidding events 100%100%100%100% I-D Implement available SCADA Soft updates 100%100%100%100% I-D Investigate and identify incentive opportunities with Southern California Edison staff 3 3 3 3 PROGRAM BUDGET DETAIL (ADMINISTRATION) FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 210,776 $ 194,000 $ 194,000 $ 216,000 $ 22,000 11% 5103 Overtime 489 1,000 1,000 1,000 - 0% 5104 Standby 14,659 15,000 15,000 20,000 5,000 33% 5200 Benefits 115,874 81,000 126,000 97,000 16,000 20% OPERATING EXPENSES 6201 Materials & Supplies 1,597 - - - - 0% 6202 Tools 50 5,000 5,000 5,000 - 0% 6203 Office Supplies 4,229 4,000 4,000 4,000 - 0% 6301 Contract Services 45,564 59,000 59,000 85,000 26,000 44% 6307 Uniforms 10,311 12,000 12,000 12,000 - 0% 6402 Telephone 10,625 14,000 14,000 14,000 - 0% 6405 Permits - - - - - 0% 6501 Membership & Dues 490 3,000 3,000 3,000 - 0% 6502 Professional Development 9,714 6,000 6,000 6,000 - 0% 6503 Education Assistance - - - 5,000 5,000 100% 6504 Meetings - - - 1,000 1,000 100% ADMINISTRATION TOTAL $ 424,378 $ 394,000 $ 439,000 $ 469,000 $ 75,000 19% FISCAL YEAR BUDGET 2017-2018110 PROGRAM BUDGET DETAIL (SOURCE OF SUPPLY/WELLS) FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 250,455 $ 261,000 $ 261,000 $ 270,000 $ 9,000 3% 5103 Overtime 23,916 25,000 25,000 25,000 - 0% 5200 Benefits 74,645 99,000 99,000 113,000 14,000 14% OPERATING EXPENSES 6101 Purchased Water 69,798 750,000 442,000 500,000 (250,000)-33% 6102 Groundwater Replenishment 147,497 163,000 163,000 163,000 - 0% 6103 Water Assessment 253,956 332,000 332,000 138,000 (194,000)-58% 6201 Materials & Supplies 27,236 45,000 45,000 45,000 - 0% 6204 Chemicals 93,213 150,000 150,000 150,000 - 0% 6301 Contract Services 8,956 150,000 150,000 150,000 - 0% 6402 Telephone 594 - - - - 0% 6403 Electricity 1,057,647 1,000,000 998,850 1,000,000 - 0% 6405 Permits 23,129 100,000 100,000 100,000 - 0% SOURCE OF SUPPLY/ WELLS TOTAL $ 2,031,042 $ 3,075,000 $ 2,765,850 $ 2,654,000 $ (421,000)-14% PROGRAM BUDGET DETAIL (BOOSTING AND PUMPING) FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 80,976 $ 85,000 $ 85,000 $ 92,000 $ 7,000 8% 5103 Overtime 8,795 5,000 5,000 5,000 - 0% 5200 Benefits 22,341 29,000 29,000 34,000 5,000 17% OPERATING EXPENSES 6201 Materials & Supplies 8,341 20,000 20,000 20,000 - 0% 6301 Contract Services 63,509 75,000 75,000 75,000 - 0% 6403 Electricity 447,571 500,000 500,000 500,000 - 0% BOOSTING & PUMPING TOTAL $ 631,533 $ 714,000 $ 714,000 $ 726,000 $ 12,000 2% 111EAST VALLEY WATER DISTRICT PROGRAM BUDGET DETAIL (TRANSMISSION AND DISTRIBUTION) FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 97,839 $ 86,000 $ 86,000 $ 92,000 $ 6,000 7% 5103 Overtime 11,303 5,000 5,000 5,000 - 0% 5200 Benefits 20,468 30,000 30,000 26,000 (4,000)-13% OPERATING EXPENSES 6201 Materials & Supplies 10,988 10,000 10,000 10,000 - 0% 6204 Chemicals 41,937 45,000 45,000 45,000 - 0% 6301 Contract Services 30,999 45,000 45,000 45,000 - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 213,534 $ 221,000 $ 221,000 $ 223,000 $ 2,000 1% FISCAL YEAR BUDGET 2017-2018112 THIS PAGE IS LEFT BLANK INTENTIONALLY 113EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WATER TREATMENT Function Water Treatment is responsible for using various methods to treat the three different sources of supply used by the District. Staff is trained to operate the Surface Water Treatment Plant to maximize both Santa Ana River water and imported State Project water. goals and objectives GOAL ONE Identify Process Improvements at Plant 134 to Improve Water Quality OBJECTIVES 1. Work with other agencies on regional solution to elevated total organic carbon levels in source water. 2. Perform pilot study to identify best available treatment technology. 3. Identify CIP projects for FY 2017-18. GOAL TWO Evaluate Use of Hydro-Generation Technology at Plant 134 OBJECTIVES 1. Conduct cost-benefit analysis to determine Plant 134 optimum operating capacity in conjunction with other supply facilities. 2. Determine Hydro-Generator plant capacity needed to supply Plant 134 with power for treatment processes. 3. Investigate best options for use of water from the North Fork Canal. GOAL THREE Develop an Operations Process and Procedures Manual for the New Hydro-Generators to Use for Staff Training OBJECTIVES 1. Work with manufacturer of the hydro-generator to develop a procedure manual for operations. 2. Provide hands-on training to water production operators assigned to treatment plant. FISCAL YEAR BUDGET 2017-2018114 2016-17 ACCOMPLISHMENTS • Implemented an OSHA crane inspection program at Plant 134 that removes the filters • Implemented a fiber repair tracking system that was introduced in the Leadership Academy. • Worked with contractor on the hydro-generation project • Purchased and installed a new chlorine tank SIGNIFICANT CHANGES • Increased Contract Services for crane inspection, compressor maintenance and software updates for Supervisory Control and Data Acquisition (SCADA) LEVELS OF SERVICE The Water Treatment Program has four KPI metrics that are associated with the Districts Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Service (I-A) • Dedicate Effort towards System Maintenance and Modernization (I-D) • Maximize Staff Capabilities through On-going Professional Development (II-D) The program’s performance related to these metrics are included in the following table. water treatment program Program Personnel Water Production Supervisor 1 Senior Treatment Plant Operator 1 Total Full-Time 2 Water Treatment is Responsible for Treating the Three Sources of Supply Water Production Supervisor Operations Manager Sr. Treatment Plant Operator Designates Link to District’s Overall Organizational Structure Program Personnel 115EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Meet all regulatory requirements 100%100%100%90% I-A Maximize utilization of plant capacity through minimization of downtime and monitoring of raw water 7.5 MGD 5.0 4.0 5.0 I-D Percentage of plant equipment and motors on preventative maintenance schedules 100%50%75%100% II-D Number of Production staff with T-4 certification or higher 4 2 2 2 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 234,370 $ 217,000 $ 217,000 $ 237,000 $ 20,000 9% 5103 Overtime 15,014 10,000 10,000 10,000 - 0% 5200 Benefits 75,006 69,000 69,000 92,000 23,000 33% OPERATING EXPENSES 6201 Materials & Supplies 11,205 15,000 15,000 15,000 - 0% 6204 Chemicals 140,403 150,000 150,000 150,000 - 0% 6301 Contract Services 161,263 166,000 166,000 186,000 20,000 12% 6402 Telephone 10,725 - - - - 0% 6403 Electricity 108,104 200,000 200,000 200,000 - 0% 6405 Permits - - - - - 0% WATER TREATMENT TOTAL $ 756,090 $ 827,000 $ 827,000 $ 890,000 $ 63,000 8% FISCAL YEAR BUDGET 2017-2018116 THIS PAGE IS LEFT BLANK INTENTIONALLY 117EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WATER QUALITY Function Water Quality is responsible for ensuring District compliance with state and federal drinking water regulations. This program manages backflow protection devices, water sampling and testing, and fire hydrant flushing programs. goals and objectives GOAL ONE Provide Safe and Reliable Water to Our Customers OBJECTIVES 1. Ensure water sampling and testing as required by the SWRCB and EPA. 2. Collect source water quality data for improving current and future treatment operations. 3. Perform pilot studies of advanced treatment processes to support future Surface Water treatment compliance. 4. Collaborate with peers and industry professionals to identify long term solutions for handling changes in source water quality. GOAL TWO Convert Flush-out Valves to Control Discharge Flows OBJECTIVES 1. Identify and prioritize 12 flush-out valves in the distribution system in need of modification. 2. Collaborate with water maintenance to schedule and perform appropriate modifications. GOAL THREE Evaluate New Backflow Program and Determine Effectiveness OBJECTIVES 1. Find ways to continually promote program to customers. 2. Increase participation in the Backflow Testing Program by five percent each year. 3. Evaluate program progress on a quarterly basis through measuring participation and customer feedback. 4. Evaluate and Improve program to meet customer needs. FISCAL YEAR BUDGET 2017-2018118 2016-17 ACCOMPLISHMENTS • Completed Santa Ana Watershed survey update as required by SWRCB • Implemented District provided backflow testing services program • Implemented lead sampling program for K-12 schools • Implemented new source water sampling plan to support possible treatment plant process improvements • Completed approximately 25 cross connection surveys, resulting in multiple new backflow installations • Assumed fire service backflow testing, previously performed by a contractor SIGNIFICANT CHANGES • Contract Services budget for transmission and distribution has been reduced due to district staff assuming fire service backflow testing previously completed by a contractor • Contract Services for wells has been reduced due to the completion of the watershed survey update LEVELS OF SERVICE The Water Quality Program has four KPI metrics that are associated with the District’s Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Service (I-A) • Strive to Provide World Class Customer Relations (II-A) • Maximize Staff Capabilities through On-going Professional Development (II-D) The program’s performance related to these metrics are included in the following table. water quality program Program Personnel Water Quality Coordinator 1 Water Quality Technician 1 Total Full-Time 2 Water Quality Complies with all Required Drinking Water Regulations Water Quality Coordinator Operations Manager Water Quality Technician Designates Link to District’s Overall Organizational Structure Program Personnel 119EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Conduct all water quality sampling required by SWRCB and EPA 100%100%100%100% I-A Percentage of commercial backflow devices tested each year 100%90%90%90% II-A Response time to water quality complaints by customers (avg)2 Hrs --- II-D Number of Water Quality program staff with D-3 certification or higher 2 1 2 1 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 79,511 $ 81,000 $ 81,000 $ 88,000 $ 7,000 9% 5103 Overtime 4,340 2,000 2,000 5,000 3,000 150% 5200 Benefits 33,753 30,000 30,000 38,000 8,000 27% SOURCE OF SUPPLY WELLS OPERATING EXPENSES 6201 Materials & Supplies 11,866 13,000 13,000 13,000 - 0% 6301 Contract Services 32,534 101,000 101,000 72,000 (29,000)-29% 6307 Uniforms 2,136 3,000 3,000 4,000 1,000 33% 6504 Meetings - - - 1,000 TRANSMISSION AND DISTRIBUTION PERSONNEL EXPENSES 5101 Regular Labor 78,154 81,000 81,000 88,000 7,000 9% 5103 Overtime 62 2,000 2,000 5,000 3,000 150% 5200 Benefits 22,744 30,000 30,000 38,000 8,000 27% TRANSMISSION AND DISTRIBUTION OPERATING EXPENSES 6201 Materials & Supplies 48 - - - - 0% 6202 Tools 2,836 5,000 5,000 5,000 - 0% 6301 Contract Services 38,190 57,000 57,000 44,000 (13,000)-23% 6406 Postage 2,404 2,000 2,000 2,000 - 0% 6503 Education Assistance - - - 7,000 WATER QUALITY TOTAL $ 308,578 $ 407,000 $ 407,000 $ 410,000 $ 3,000 1% FISCAL YEAR BUDGET 2017-2018120 THIS PAGE IS LEFT BLANK INTENTIONALLY 121EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WATER MAINTENANCE Function Water Maintenance is responsible for the daily repair and maintenance of the District’s water transmission and distribution pipelines, and all related equipment, including fire hydrants, meters, valves, and meter vaults. goals and objectives GOAL ONE Evaluate All Preventative Maintenance Programs (Valve Exercising and Hydrant Maintenance) and Determine Effectiveness OBJECTIVES 1. Determine preventative maintenance goals and compare to actual annual numbers. 2. Research other organizations and determine an industry standard for preventative maintenance. 3. Adjust programs if necessary using the comparison information to enhance effectiveness. GOAL TWO Partner with Local Agencies to Enhance Community Services OBJECTIVES 1. Provide staff to assist with coordinated projects within the District. 2. Create a list of resources available in the event of an emergency. GOAL THREE Encourage Continued Education and Technology Training to Support Advancement Opportunities OBJECTIVES 1. Budget accordingly for seminars and technical training classes. 2. Identify local training opportunities with low cost or free options. 3. Encourage participation in training programs and increases in certification levels. FISCAL YEAR BUDGET 2017-2018122 2016-17 ACCOMPLISHMENTS • Repaired 261 water leaks • Replaced 15 large vault lids • Implemented a customer wastewater lateral inspection and repair program • Implemented a safety training program introduced in the Leadership Academy • Implemented a valve shut down program at District Plants as part of the Emergency Response Plan SIGNIFICANT CHANGES • Meetings budget added for this fiscal year • Increased Street Services for asphalt and concrete repairs due to an increase in City permits • Increased Contract Services to implement a leak detection program LEVELS OF SERVICE The Water Maintenance Program has four KPI metrics that are associated with the District’s Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Service (I-A) • Dedicate Effort Towards System Maintenance and Modernization (1-D) • Maximize Staff Capabilities through On-Going Professional Development (II-D) The program’s performance related to these metrics are included in the following table. water maintenance program Program Personnel Field Service Supervisor 1 Senior Field Service Worker 2 Field Service Worker III 4 Field Service Worker II 2 Field Service Worker I 3 Total Full-Time 12 Water Maintenance Maintains the District’s Water Transmission and Distribution System Field Service Worker III (4) Sr. Field Service Worker (2) Field Service Worker II (2) Field Service Worker I (3) Field Services Supervisor Operations Manager Designates Link to District’s Overall Organizational Structure Program Personnel 123EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Provide timely response and assessment of customer leak concerns (avg. time).4 Hrs 100%100%90% I-D Exercise a set number of gate valves each year to help ensure equipment readiness and functionality 1,200 1,200 1,200 1,200 II-D Number of Water Maintenance staff with D-3 certifications or higher.5 3 3 3 II-D Average annual equipment and safety training hours per staff member 16 16 16 16 PROGRAM BUDGET DETAIL (FIELD MAINTENANCE ADMINISTRATION) FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 178,456 $ 105,000 $ 105,000 $ 114,000 $ 9,000 9% 5103 Overtime - - - - - 0% 5104 Standby 22,035 20,000 20,000 20,000 - 0% 5200 Benefits 74,930 42,000 42,000 45,000 3,000 7% OPERATING EXPENSES 6203 Office Supplies 2,289 3,000 3,000 3,000 - 0% 6303 Printing & Publishing - - - - - 0% 6402 Telephone 14,110 21,000 21,000 21,000 - 0% 6501 Memberships & Dues 80 2,000 2,000 2,000 - 0% 6502 Professional Development 20,856 18,000 18,000 14,000 (4,000)-22% 6503 Education Assistance - 5,000 5,000 - (5,000)-100% 6504 Meetings - - - 1,000 1,000 100% FIELD MAINTENANCE ADMINISTRATION TOTAL $ 312,756 $ 216,000 $ 216,000 $ 220,000 $ 4,000 2% FISCAL YEAR BUDGET 2017-2018124 PROGRAM BUDGET DETAIL (WATER MAINTENANCE) FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 774,613 $ 727,000 $ 727,000 $ 784,000 $ 57,000 8% 5103 Overtime 167,043 150,000 150,000 150,000 - 0% 5200 Benefits 328,222 316,000 316,000 417,000 101,000 32% OPERATING EXPENSES 6201 Materials & Supplies 219,600 205,000 205,000 210,000 5,000 2% 6202 Tools 5,668 27,000 27,000 11,000 (16,000)-59% 6301 Contract Services 72,795 14,000 14,000 29,000 15,000 107% 6307 Uniforms 16,382 20,000 20,000 20,000 - 0% 6310 Street Services 353,145 300,000 300,000 400,000 100,000 33% 6405 Permits 38,806 - - - - 0% WATER MAINTENANCE TOTAL $ 1,976,274 $ 1,759,000 $ 1,759,000 $ 2,021,000 $ 262,000 15% 125EAST VALLEY WATER DISTRICT WASTEWATER MAINTENANCE Function Wastewater Maintenance is responsible for the daily repair and safeguarding of the wastewater conveyance system. Based on the Wastewater System Maintenance Plan, crews complete preventative video monitoring, scheduled maintenance, system repairs, and emergency repairs. goals and objectives GOAL ONE Utilize Granite Net Software to Document Wastewater Collection System Maintenance OBJECTIVES 1. Make initial assessment of pipe condition (1 to 5) and forward recommendations for immediate repairs to Engineering. 2. Document discrepancies in GIS maps and forward to Engineering for corrections. 3. Download video logs, and schedule routine follow-up meetings with Engineering to discuss scheduling of repairs and map corrections. GOAL TWO Support Future Wastewater Monitoring Operations by Evaluating Fats, Oils and Grease (FOG) Entering the District’s Wastewater Collection System OBJECTIVES 1. Document requirements to implement a FOG compliance program. 2. Identify food service establishments within District that will need regulation. 3. Work with Public Affairs to begin customer outreach. 4. Educate staff on compliance standards. GOAL THREE Continue Wastewater Collection System Maintenance and Management OBJECTIVES 1. Video a minimum of 60 miles of wastewater main and complete a full system review in FY 2018-19. 2. Clean a minimum of 220 miles of wastewater main annually. 3. Support employees in obtaining California Water Environment Association Collection System Maintenance certification. 4. Identify candidates for leadership role in wastewater maintenance program. FISCAL YEAR BUDGET 2017-2018126 2016-17 ACCOMPLISHMENTS • Enhanced wastewater maintenance cross- training program • Performed 72 miles of wastewater main video • Jetted 223 miles of wastewater • Rotated and trained staff on the new hydro excavator • Completed video of wastewater mains at Patton State Hospital • Replaced wastewater main in front of Hunt Elementary School and made it consistent with current engineering standards SIGNIFICANT CHANGES • Materials and supplies has increased due to purchase of air monitoring equipment and has moved from Human Resources to Wastewater Maintenance LEVELS OF SERVICE The Wastewater Maintenance Program has four KPI metrics that are associated with the Districts Organizational Endeavors of: • Develop Projects and Programs to Ensure Safe and Reliable Service (I-A) • Dedicate Effort towards System Maintenance and Modernization (I-D) • Maximize Staff Capabilities through Ongoing Professional Development (II-D) The program’s performance related to these metrics are included in the following table. wastewater maintenance program Program Personnel Field Service Worker III 2 Field Service Worker II 2 Total Full-Time 4 Wastewater Maintenance Repairs and Safeguards the Conveyance System Field Service Worker III (2) Operations Manager Field Service Worker II (2) Designates Link to District’s Overall Organizational Structure Program Personnel 127EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 I-A Miles of wastewater line annually inspected by video.60 30 66 72 I-D Miles of wastewater main jetted/cleaned annually.220 175 227 223 I-D Number of Category 1 Sanitary System Overflows reportable to the State Water Resources Control Board. 0 0 0 0 II-D Number of field maintenance staff with CWEA wastewater certifications 4 -1 5 PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 135,687 $ 242,000 $ 302,000 $ 280,000 $ 38,000 16% 5103 Overtime 24,562 3,000 3,000 3,000 - 0% 5200 Benefits 63,899 115,000 55,000 144,000 29,000 25% OPERATING EXPENSES 6201 Materials & Supplies 21,902 27,000 27,000 30,000 3,000 11% 6202 Tools 1,595 5,000 5,000 5,000 - 0% 6301 Contract Services 159,818 228,000 226,850 228,000 - 0% 6307 Uniforms 1,388 3,000 3,000 3,000 - 0% 6305 Treatment Services 7,302,389 7,610,000 7,610,000 7,610,000 - 0% WASTEWATER MAINT. TOTAL $ 7,711,240 $ 8,233,000 $ 8,231,850 $ 8,303,000 $ 70,000 1% FISCAL YEAR BUDGET 2017-2018128 THIS PAGE IS LEFT BLANK INTENTIONALLY 129EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY FACILITIES MAINTENANCE Function Facilities Maintenance is responsible for the complete maintenance and repair of all District facilities, including Administration Buildings, water facilities, District-owned vacant properties and easements. goals and objectives GOAL ONE Explore Alternative Energy Solutions for District Facilities OBJECTIVES 1. Research different solar companies to help determine the best options for EVWD. 2. Develop a cost benefit analysis and monitor progress. 3. Design and Implement generator power to accommodate full energy capacity for the District’s Headquarters for emergency preparedness. GOAL TWO Identify Two District Facilities for Upgrades and Repairs OBJECTIVES 1. Implement site improvements for Plant 28 and Plant 108. 2. Work with contractor to repair or replace aging facilities and infrastructure. GOAL THREE Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with all District Facilities OBJECTIVES 1. Create a RFP for the Facilities Maintenance Program and evaluate and select a qualified consultant. 2. Develop a Facilities Master Maintenance plan for all District properties. 3. Develop a facilities replacement program by tracking preventative maintenance and associated costs. FISCAL YEAR BUDGET 2017-2018130 2016-17 ACCOMPLISHMENTS • Organized a Headquarters Security committee to make improvements to protect employees and visitors. Improvements include: additional cameras, panic buttons, automatic door locks and pipe gate at main entrance • Worked with Public Affairs on Demonstration Garden upgrade and SNRC events SIGNIFICANT CHANGES • Postponed Facilities Maintenance Management Program until mid-year 2017-18 LEVELS OF SERVICE The Facilities Maintenance Program has two KPI metrics that are associated with the District’s Organizational Endeavors of: • Encourage Performance Based Results Through Staff Empowerment (IV-B) • Support On-going Business Process Improvements (IV-A) The program’s performance related to these metrics are included in the following table. facilities maintenance program Program Personnel Facilities Maintenance Coordinator 1 Total Full-Time 1 Facilities Maintenance Repairs and Maintains All District Facilities Facilities Maintenance Coordinator Operations Manager KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 IV-B Close all service work orders timely <30 days N/A N/A N/A IV-B Reduce the number of reworks on service work orders < 10%N/A N/A N/A IV-A Ensure preventative maintenance is completed on time 100%N/A N/A N/A IV-A Reduce energy consumption for each facility site >20%N/A N/A N/A **N/A Represents new KPIs for FY 2017-18 with no historical data available Designates Link to District’s Overall Organizational Structure Program Personnel 131EAST VALLEY WATER DISTRICT PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 88,195 $ 89,000 $ 89,000 $ 97,000 $ 8,000 9% 5103 Overtime 22,892 25,000 25,000 25,000 - 0% 5200 Benefits 48,009 37,000 37,000 44,000 7,000 19% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 41,309 25,000 25,000 25,000 - 0% 6202 Tools 1,208 2,000 2,000 2,000 - 0% 6301 Contract Services 64,234 86,000 86,000 34,000 (52,000)-60% 6306 Rents & Leases 7,511 - - - - 0% 6307 Uniforms 11,628 11,000 11,000 11,000 - 0% 6311 Landscape Services 35,526 56,000 56,000 56,000 - 0% 6312 Janitorial Services 73,910 125,000 125,000 132,000 7,000 6% 6313 Facilities Repair - - - - - 0% 6401 Utilities 24,866 11,000 11,000 11,000 - 0% 6402 Telephone 55,975 75,000 75,000 75,000 - 0% 6403 Electricity 102,183 120,000 120,000 120,000 - 0% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 4,735 5,000 5,000 5,000 - 0% 6301 Contract Services 19,276 5,000 3,850 5,000 - 0% 6311 Landscape Services 53,307 40,000 40,000 40,000 - 0% PUMPS AND BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies 6,895 5,000 5,000 5,000 - 0% 6301 Contract Services 9,460 5,000 5,000 5,000 - 0% 6311 Landscape Services 46,551 35,000 35,000 35,000 - 0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 7,453 5,000 5,000 5,000 - 0% 6301 Contract Services 13,677 13,000 13,000 15,000 2,000 15% 6311 Landscape Services 21,531 14,000 14,000 14,000 - 0% 6401 Utilities 1,196 15,000 15,000 15,000 - 0% FACILITIES MAINT. TOTAL $ 761,527 $ 804,000 $ 802,850 $ 776,000 $ (28,000)-3% FISCAL YEAR BUDGET 2017-2018132 THIS PAGE IS LEFT BLANK INTENTIONALLY 133EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY FLEET MAINTENANCE Function Fleet Maintenance is responsible for care of the District’s vehicles and heavy equipment. Staff is responsible for ensuring air quality regulations, vehicle registration and transportation requirements. goals and objectives GOAL ONE Ensure District Vehicles, Equipment and Staff are Ready for Emergency Response OBJECTIVES 1. Identify a location at the Headquarters facility for radio tower and determine communication equipment needed. 2. Identify what vehicles require two-way communication and install accordingly. 3. Identify vehicles/equipment that require specialized training and properly train employees to include a semi-annual refresher class. GOAL TWO Develop and Implement Cost Recovery Fees for Vehicles per Department for Replacement Purposes OBJECTIVES 1. Develop cost analysis spreadsheet. 2. Identify what vehicles and equipment need to be replaced and assign replacement vehicles to proper department. 3. Work with the Finance Department to develop vehicle use charges accordingly. GOAL THREE Utilize the Most Cost Effective Maintenance Methods to Reduce Costs OBJECTIVES 1. Obtain quotes from contract companies that perform preventative maintenance. 2. Track and monitor all maintenance activity. 3. Analyze the benefits of expanding the GPS tracking system for all vehicles and equipment. FISCAL YEAR BUDGET 2017-2018134 2016-17 ACCOMPLISHMENTS • Implemented an annual driver’s proficiency program for commercial drivers. • Conducted an emergency generator training class for appropriate staff • Purchased two new emergency generators for emergency preparedness and obtained proper California Air Resources Board (CARB) permits • Purchased four new vehicles and one new equipment trailer SIGNIFICANT CHANGES • Decreased Tools 87 percent due to specific scan tool that was purchased last fiscal year LEVELS OF SERVICE The Fleet Maintenance Program has three KPI metrics that are associated with the District’s Organizational Endeavors of: • Support ongoing business process improvements (IV-A) • Encourage performance based results through staff empowerment (IV-B) The program’s performance related to these metrics are included in the following table. fleet maintenance program Program Personnel Senior Equipment Mechanic 1 Equipment Mechanic III 1 Total Full-Time 2 Fleet Maintenance Cares for Vehicles and Equipment Sr. Equipment Mechanic Operations Manager Equipment Mechanic III Designates Link to District’s Overall Organizational Structure Program Personnel 135EAST VALLEY WATER DISTRICT KEY PERFORMANCE INDICATORS Agency Ideal Key Performance Indicator Target FY 2014-15 FY 2015-16 FY 2016-17 IV-A Ensure vehicles and equipment are evaluated and replaced on schedule 80% of Net Asset Value N/A N/A N/A IV-B Average Fuel Cost Per Mile <$0.25 N/A N/A N/A IV-B Average Miles per Gallon >15/gal N/A N/A N/A PROGRAM BUDGET DETAIL FY 2015-16 Actuals FY 2016-17 Budget FY 2016-17 Projected FY 2017-18 Proposed Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 152,550 $ 151,000 $ 151,000 $ 164,000 $ 13,000 9% 5103 Overtime 1,754 3,000 3,000 3,000 - 0% 5200 Benefits 59,957 66,000 66,000 79,000 13,000 20% OPERATING EXPENSES 6201 Materials & Supplies 75,263 60,000 60,000 60,000 - 0% 6202 Tools 2,883 8,000 8,000 2,000 (6,000)-75% 6203 Office Supplies 234 1,000 1,000 1,000 - 0% 6301 Contract Services 81,073 125,000 125,000 75,000 (50,000)-40% 6402 Telephone 775 1,000 1,000 1,000 - 0% 6404 Fuel 118,663 125,000 125,000 125,000 - 0% 6501 Membership & Dues 1,728 3,000 3,000 4,000 1,000 33% 6502 Professional Development 87 2,000 2,000 2,000 - 0% FLEET MAINTENANCE TOTAL $ 494,967 $ 545,000 $ 545,000 $ 516,000 $ (29,000)-5% FISCAL YEAR BUDGET 2017-2018136 THIS PAGE IS LEFT BLANK INTENTIONALLY 137EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY Capital Expenditures East Valley Water District defines capital expenditures as 1) routine purchases and replacement of assets with a cost exceeding $5,000 and an expected life of more than two years, or 2) non-routine construction project expenditures that will result in capitalization of an asset costing more than $25,000. The District’s 2017-18 capital budget contains $7,391,000 in total capital expenditures. Of this amount, $6,780,000 are current year (Year 1) costs pertaining to projects shown in the District’s Capital Improvement Program, detailed in the Capital Budget section of this document. The remaining proposed capital expenditures of $611,000 are routine asset purchases, which appear in each year’s budget as requests to replace vehicles, computer and office equipment, and to conduct infrastructure planning and rate studies. A detailed schedule of Capital Outlay requests for Fiscal Year 2017-18 is shown on page on the following page. A summary of capital expenditures proposed for Fiscal Year 2017-18 is on the following page. CAPITAL BUDGET Capital investments in assets and projects based on the needs of the District. Capital investments in assets and projects based on the needs of the District. FISCAL YEAR BUDGET 2017-2018138 CAPITAL EXPENDITURES SUMMARY Capital Improvement Program Capital Outlay (Routine) New Transmission Main $ 1,460,000 Vehicles $ 105,000 New Storage Reservoir 630,000 Emergency Generator 135,000 Plant 134 Treatment Modifications 2,350,000 Planning Studies 260,000 Storage Tank Rehabilitation 600,000 Office Furniture & Equipment 91,000 Wastewater Facility Rehabilitation 740,000 CCTV Camera 20,000 General Facilities Rehabilitation/ Relocation 325,000 SNRC Water Recycling Plant 675,000 TOTAL CIP EXPENDITURES $ 6,780,000 TOTAL CAPITAL OUTLAY $ 611,000 IMPACT OF CAPITAL EXPENDITURE INVESTMENTS ON OPERATING BUDGETS The Capital Expenditures described in the preceding section will have varying impacts on future operating expenses, both in increase costs and cost savings. The proposed transmission main allows the District to transport water farther, at a higher elevation, before distribution to District customers resulting in costs savings. New treatment processes at Plant 134 will require additional power, and periodic changeout of filter media resulting in an increase in treatment costs. The Water Recycling Facility will result in a major shift of costs, from contracted treatment services, to costs associated with owning and operating a District facility such as labor, power, materials, and debt service. The following schedule provides an estimate of the effect of CIP projects on future operations: CAPITAL IMPACT Annual Impact on Operations Nature of Impact New Transmission Main $ (75,000)Decreased Power Costs New Storage Reservoir - Plant 134 Treatment Modifications 30,000 Increased Power Costs Plant 134 Treatment Modifications 50,000 Increased Filter Media Cost Wastewater Facility Rehabilitation - General Facilities Rehabilitation/Relocation - SNRC Water Recycling Plant - SNRC Water Recycling Plant (7,900,000) Decrease Contracted Treatment SNRC Water Recycling Plant 4,600,000 Increase in Debt Service SNRC Water Recycling Plant 3,300,000 Increase Labor, Power, Materials TOTAL $ 5,000 139EAST VALLEY WATER DISTRICT Capital Budget The Capital Budget includes two sections: 1) Capital Outlay expenditures and 2) Capital Improvement Program. CAPITAL OUTLAY The District defines capital outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that are expected to last more than two years and have an individual cost of $5,000 or more. This threshold is applied at the individual asset level. Each year as part of the budget process, the District’s Program Managers and Supervisors compile and submit a list of capital outlay requests for consideration. Then staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available. Items that benefit both the water and wastewater systems are allocated accordingly. FY 2017-18 CAPITAL OUTLAY Water Wastewater Total FUNDED BY OPERATING REVENUE Office Desk $ 3,500 $ 1,500 $ 5,000 Multi Year Rate Study 60,000 60,000 120,000 Tier 2 Data Storage 8,000 3,000 11,000 Virtual Desktop infrastructure (VDI) Expansion 8,400 3,600 12,000 Virtual Desktop infrastructure (VDI) Redundancy 32,900 14,100 47,000 X2 Aurora Filing Cabinet 11,200 4,800 16,000 Water Master Plan Update 140,000 - 140,000 CCTV Camera - 20,000 20,000 SUBTOTAL 264,000 107,000 371,000 FUNDED BY REPLACEMENT RESERVE Emergency Generator $ 121,500 $ 13,500 $ 135,000 Trucks (3) 94,500 10,500 105,000 SUBTOTAL 216,000 24,000 240,000 TOTAL CAPITAL OUTLAY $ 480,000 $ 131,000 $ 611,000 CAPITAL IMPROVEMENT PROGRAM The District’s Capital Improvement Program (CIP) is a 5-year planning schedule with the first year (Year 1) adopted as part of the Capital Budget for the upcoming fiscal year. A project included in the District’s CIP is an individually significant construction project with a cost of more than $25,000, and either creates a new capital asset, improves an existing asset (increases its service capacity, etc.), or significantly extends an asset’s expected useful life. The Engineering Department is responsible for maintaining the District’s Capital Improvement Program and consults various sources for project planning. The primary sources for these planning efforts are the District’s Water Master Plan and Wastewater Collection System Master Plan, both FISCAL YEAR BUDGET 2017-2018140 updated in 2014. The Master Plans identify the infrastructure improvements needed to serve a growing population. In addition, each project being considered must meet one or more of the following criteria: • Preservation of public health and water quality. • Improvements required as a result of local, state or federal legislation/mandates. • Reduction of current maintenance expenditures and avoidance of costly future rehabilitation. • Preservation of existing facilities/infrastructure. • Positive impacts on customers. • External funding (grant/debt proceeds) has been secured for specific project. For FY 2017-18, the District has proposed the use of operating revenue, reserves and development fees to fund Capital Improvement Projects totaling $6,780,000. Projects funded for the current year include: • Upper Zone Transmission Main – This new main will provide system flexibility for delivery of treated water to lower pressure zones in the District. Planned expenditures for FY 2017-18 are $1,460,000 to be funded by the water operating revenue and prior year project budget carryover. • Canal Zone Storage Tank – This facility will enhance water delivery to one of the District’s highest elevation pressure zones. Planned expenditures for FY 2017-18 are $630,000 to be funded by capacity fees and prior year budget carryover. • Plant 134 THM Treatment / Sludge Removal – This project involves the addition of a treatment process to address elevated treatment by- products, and increased capabilities for removing sludge. Current year budget is $2,350,000 to be paid out to water operating revenue. • Wastewater Facility Replacements – The District has scheduled the rehabilitation of four sections of sewer main pipeline, rated as high priority due to the number of structural defects noted during video logging of these pipelines. Additionally, a sewer manhole left exposed due to heavy storm water flows will be reinforced to mitigate possible wastewater spills. Planned expenditures during FY 2017-18 on these facilities are $740,000, to be funded by wastewater rates and prior year budget carryover. • Storage Tank Rehabilitation – Involves reinforcement of tank structural integrity and recoating for two existing storage tanks. Current year costs are $600,000 to be paid out of Water Capital Replacement Reserves. • General Facilities Rehabilitation/Relocation– These line items involve various projects such as security upgrades, and improving the aesthetics of buildings at plant sites; it also provides a budget for relocating facilities in conjunction with City street or storm drain improvement projects. Planned expenditures for FY 2017-18 are $325,000 to be funded by water and wastewater operating revenue. The District also identifies the need for projects through regional planning efforts and includes District participation in those projects in the Capital Improvement Program. They include: • Sterling Natural Resource Center Water Recycling Facility – This joint project would capture and treat District wastewater flows at an elevation high enough to recharge the Bunker Hill Groundwater Basin, rather than releasing treated water into the Santa Ana River for use downstream. Planned expenditures in FY 2017- 18 are $675,000, funded by reserves until State Revolving Fund grants and/or low interest loans can be obtained. The following pages include the District current CIP, a summary of project funding, and detailed descriptions of each project. 141EAST VALLEY WATER DISTRICT CIP FIVE YEAR PROGRAM SCHEDULE (FY 2017-22) YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL GENERAL Habitat Conservation Plan $ - $ 310,000 $ 384,000 $ 383,000 $ - $ 1,077,000 AMI Meter Retrofit Program - 750,000 500,000 500,000 1,000,000 2,750,000 GENERAL SUBTOTAL - 1,060,000 884,000 883,000 1,000,000 3,827,000 WATER Canal Zone Storage Reservoir 630,000 1,500,000 1,000,000 - - 3,130,000 Mountain Zone 1 MG Reservoir - - - 500,000 500,000 1,000,000 Booster Station Upper to Canal Zone - 800,000 400,000 - - 1,200,000 Booster Station Canal to Mountain Zone - - - 800,000 745,000 1,545,000 Transmission Main Plant 134 to Upper Zone 1,460,000 - - - - 1,460,000 Transmission Main Plant 134 to Canal Zone - - 880,000 - - 880,000 Plant 134 THM Treatment/ Sludge Removal 2,350,000 - - - - 2,350,000 Water Main Replacement Dwight/Glasgow - - 400,000 1,000,000 - 1,400,000 Water Main Replacement Sterling/Highland - - - - 430,000 430,000 Water Main Replacement Fisher/Stratford - - - - 920,000 920,000 Plant 9 Forebay Repair 350,000 - - - - 350,000 Plant 59 Tank Recoating 250,000 - - - - 250,000 Plant 140 Tank Recoating - 250,000 - - - 250,000 Facilities' Relocations 100,000 100,000 100,000 100,000 100,000 500,000 Facilities' Rehabilitations 225,000 75,000 75,000 75,000 75,000 525,000 Well and Booster Rehabilitations - 150,000 - 150,000 150,000 450,000 WATER SUBTOTAL $ 5,365,000 $ 2,875,000 $ 2,855,000 $ 2,625,000 $ 2,920,000 $ 16,640,000 FISCAL YEAR BUDGET 2017-2018142 YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL WASTEWATER Wastewater Main Replacement Orange Street $ 75,000 $ - $ - - $ $ - $ 75,000 Wastewater Main Rehabilitation 4th Street 200,000 - - - - 200,000 Wastewater Main Rehabilitation Paloma Road Phase II 105,000 - - - - 105,000 Wastewater Main Replacement Ferndale Avenue 210,000 - - - - 210,000 Wastewater Main Rehabilitation Rogers Lane - 110,000 - - - 110,000 Wastewater Main Rehabilitation 35th Street - 180,000 - - - 180,000 Wastewater Main Replacement Modesto Drive - 250,000 - - - 250,000 Wastewater Main Replacement Conejo Drive - - 250,000 - - 250,000 Wastewater Main Replacement Osbun Road - - - 250,000 - 250,000 Wastewater Main Replacement Elmwood Road - - - - 250,000 250,000 City Creek Manhole Relocation 150,000 - - - - 150,000 Sterling Natural Resources Center (SNRC) 675,000 56,250,000 41,650,000 - - 98,575,000 5th Street Trunk Wastewater (SNRC) - 3,500,000 - - - 3,500,000 Del Rosa Drive Trunk Wastewater (SNRC) - 4,100,000 - - - 4,100,000 3rd Street Lift Station and Force Main (SNRC) - - 20,500,000 - - 20,500,000 WASTEWATER SUBTOTAL 1,415,000 64,390,000 62,400,000 250,000 250,000 128,705,000 TOTAL $ 6,780,000 $ 68,325,000 $ 66,139,000 $ 3,758,000 $ 4,170,000 $ 149,172,000 143EAST VALLEY WATER DISTRICT CIP FIVE YEAR FUNDING SCHEDULE (FY 2018-22) YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL Water Operating Revenue $ 3,625,000 $ 3,935,000 $ 3,739,000 $3,508,000 $3,920,000 $ 18,727,000 Water Budget Carryover (Repl Reserves) 1,240,000 - - - - 1,240,000 Wastewater Operating Revenue 662,000 540,000 250,000 250,000 250,000 1,952,000 Wastewater Budget Carryover (Repl Reserves) 275,000 - - - - 275,000 Wastewater Reserve Borrowing 478,000 - - - - 478,000 Grants / Loans - 63,850,000 62,150,000 - - 126,000,000 Revenue Bonds - - - - - - Developer Fees 500,000 - - - - 500,000 TOTAL $ 6,780,000 $ 68,325,000 $ 66,139,000 $ 3,758,000 $ 4,170,000 $ 149,172,000 FISCAL YEAR BUDGET 2017-2018144 CIP FY 2017-18 PROPOSED FUNDING Water Operating Revenue Wastewater Operating Revenue Reserves (Carryover) Grants/ Loans Other Fund Developer Fees Project Total WATER Canal Zone Storage Reservoir $ - $ - $ 380,000 $ - $ 250,000 $ 630,000 Transmission Main Plant 134 to Upper Zone 350,000 - 860,000 - 250,000 1,460,000 Plant 134 THM Treatment/ Sludge Removal 2,350,000 - - - - 2,350,000 Plant 9 Forebay Repair 350,000 - - - - 350,000 Plant 59 Tank Recoating 250,000 - - - - 250,000 Facilities Relocations 100,000 - - - - 100,000 Facilities Rehabilitation 150,000 75,000 - - - 225,000 Water Subtotal 3,550,000 75,000 1,240,000 - 500,000 5,365,000 WASTEWATER Wastewater Main Replacement Orange Street - - 75,000 - - 75,000 Wastewater Main Rehabilitation 4th Street - - 200,000 200,000 Wastewater Main Rehabilitation Paloma Road Phase II - 105,000 - - - 105,000 Wastewater Main Replacement Ferndale Avenue - 210,000 - - - 210,000 City Creek Manhole Relocation - 150,000 - - - 150,000 Sterling Natural Resources Center (SNRC) 75,000 122,000 478,000 - - 675,000 Wastewater Subtotal 75,000 587,000 753,000 - - 1,415,000 TOTAL $ 3,625,000 $ 662,000 $ 1,993,000 $ - $ 500,000 $ 6,780,000 145EAST VALLEY WATER DISTRICT canal Zone storage reservoir Project Type New Water Storage Location A siting study will be completed to determine the best location for this reservoir. Project Manager Engineering/Operations Total Project Cost $3,130,000 Prior Years Budget N/A Start Date July 2016 Estimated Completion December 2018 Capital Requests Project Previously Programmed Project Description The District’s 2014 Water System Master Plan update recommended a phased approach to addressing a 2.5 million gallon (MG) storage capacity deficiency in the District’s existing water distribution system. Adding storage in the District’s Canal Zone was listed as the top priority. The purpose of this project is to plan, design and build a 2.5 MG storage tank in the District’s Canal 3 pressure zone. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A FISCAL YEAR BUDGET 2017-2018146 Canal Zone Storage Reservoir PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 220,000 $ -$ -$ -$ -$ 220,000 Land and Land Preparation 150,000 ----150,000 Construction (Contract)210,000 1,340,000 910,000 --2,460,000 Project Mgmt/Inspection 30,000 130,000 70,000 --230,000 Equipment/Furnishings ----- Materials ------ EVWD Labor 20,000 30,000 20,000 --70,000 Other (Legal)----- ANNUAL TOTAL $ 630,000 $ 1,500,000 $ 1,000,000 $ -$ -$ 3,130,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ -$ 1,500,000 $ 1,000,000 $ -$ -$ 2,500,000 Reserves 380,000 ----380,000 Grants/Loans ------ Bond Proceeds ------ Development Fees 250,000 ----250,000 Other ------ ANNUAL TOTAL $ 630,000 $ 1,500,000 $ 1,000,000 $ -$ -$ 3,130,000 147EAST VALLEY WATER DISTRICT transmission main, plant 134 to upper zone Project Type Water Location Highland Avenue between Plant 134 and Palm Avenue Palm Avenue between Highland Avenue and Baseline Avenue Project Manager Engineering Total Project Cost $1,460,000 Prior Years Budget N/A Start Date April 2017 Estimated Completion June 2018 Capital Requests New Project Project Description East Valley Water District’s service area is bifurcated by the 210 and 330 Freeways, allowing a limited number of crossing points to move water from one side of the freeway to the other. This limitation makes delivery of water from the District’s surface water treatment plant (Plant 134) to the opposite (west) side of the freeway very inefficient as water must be dropped to lower zones to a crossing point, and then pumped back to higher elevations on the west side of the freeway. Without this limitation, delivery of water produced by Plant 134 would require little pumping and be very cost effective. This project will create a new freeway crossing point at high elevation, greatly enhancing system efficiency and flexibility. The project involves installation of 11,560 feet of 16-inch transmission main under the 330 freeway and in Highland and Palm Avenues. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities This project would save approximately $30,000 annually on booster and well pumping on the District’s west side. FISCAL YEAR BUDGET 2017-2018148 Transmission Main, Plant 134 to Upper Zone PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 1,300,000 - - - - 1,300,000 Project Mgmt/Inspection 120,000 - - - - 120,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 40,000 - - - - 40,000 Other (Legal) - - - - - - ANNUAL TOTAL $1,460,000 $ - $ - $ - $ - $1,460,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 350,000 $ - $ - $ - $ - $ - Reserves 860,000 - - - - 1,460,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees 250,000 - - - - - Other - - - - - - ANNUAL TOTAL $ 1,460,000 $ - $ - $ - $ - $ 1,460,000 149EAST VALLEY WATER DISTRICT plant 134 treatment modifications Project Type Water Location Plant 134, Highland Avenue Project Manager Operations Total Project Cost $2,350,000 Prior Years Budget N/A Start Date TBD Estimated Completion TBD Capital Requests New Project Project Description Plant 134 is the District’s only surface water treatment plant and is the primary source for delivering water to three of the District’s higher elevation pressure zones. The recent drought in California has lowered water levels in the reservoirs that release surface water, causing water temperatures to rise and create a favorable environment for the growth of algae and other organic materials. When this high organic content in Plant 134 source water interacts with chlorine added during treatment processes, the by-product Trihalomethane (TTHM) can reach unacceptable levels leading to water quality concerns. This project includes research of various treatment processes, including Granular Activated Carbon (GAC) filter, and eventually construction, to remove organics and mitigate the possibility of high TTHM levels. During the same period, the District will explore methods for disposal of higher levels of sludge removed from surface water, which has increased due to the expansion of Plant 134 capacity from 4 to 8 million gallons per day. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance The installation of GAC filters would increase maintenance costs by approximately $50,000 annually for replacement of filter media. Utilities An additional treatment process will increase power costs by approximately $20,000 annually. FISCAL YEAR BUDGET 2017-2018150 Plant 134 Treatment Modifications PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 150,000 $ - $ - $ - $ - $ 150,000 Land and Land Preparation - - - - - - Construction (Contract) 1,700,000 - - - - 1,700,000 Project Mgmt/Inspection 150,000 - - - - 150,000 Equipment/Furnishings 325,000 - - - - 325,000 Materials - - - - - - EVWD Labor 25,000 - - - - 25,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 2,350,000 $ - $ - $ - $ - $ 2,350,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 2,350,000 $ - $ - $ - $ - $ 2,350,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 2,350,000 $ - $ - $ - $ - $ 2,350,000 151EAST VALLEY WATER DISTRICT plant 9 forebay repair Project Type Water Location Temple Street Project Manager Operations Total Project Cost $350,000 Prior Years Budget N/A Start Date November 2017 Estimated Completion June 2018 Capital Requests New Project Project Description Plant 9 is located in the middle of the District’s service area and provides water to the Intermediate pressure zone. The plant includes a 50,000-gallon tank that is used to remove sand and air from the water before it is pumped into the distribution system. A recent tank inspection revealed that the forebay has a hole in it. This project includes the repair, or possible replacement of the forebay tank at Plant 9. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A FISCAL YEAR BUDGET 2017-2018152 Plant 9 Forebay Repair PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 10,000 $ - $ - $ - $ - $ 10,000 Land and Land Preparation - - - - - - Construction (Contract) 330,000 - - - - 330,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 10,000 - - - - 10,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 350,000 $ - $ - $ - $ - $ 350,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 350,000 $ - $ - $ - $ - $ 350,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 350,000 $ - $ - $ - $ - $ 350,000 153EAST VALLEY WATER DISTRICT plant 59 tank recoating Project Type Water Location Aspen Drive Project Manager Operations Total Project Cost $250,000 Prior Years Budget N/A Start Date November 2017 Estimated Completion June 2018 Capital Requests New Project Project Description Plant 59 consists of a 750,000-gallon reservoir, and a small hydro-pneumatic tank, which combined serve approximately 150 residences in the District’s Canal pressure zone. Recent inspection reports have emphasized the need to recoat the exterior of both tanks, and to recoat the interior of the larger reservoir. A unique challenge in performing these repairs, however, is that these tanks are the sole method for delivering water to the residences served by Plant 59. This project includes recoating the tanks as recommended, and the installation of temporary delivery methods for the affected residences while the tanks are out of service during repairs. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A FISCAL YEAR BUDGET 2017-2018154 Plant 59 Tank Recoating PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 15,000 $ - $ - $ - $ - $ 15,000 Land and Land Preparation - - - - - - Construction (Contract) 200,000 - - - - 200,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings 30,000 - - - - 30,000 Materials - - - - - - EVWD Labor 5,000 - - - - 5,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 250,000 $ - $ - $ - $ - $ 250,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 250,000 $ - $ - $ - $ - $ 250,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 250,000 $ - $ - $ - $ - $ 250,000 155EAST VALLEY WATER DISTRICT facility relocations Project Type Replacement Water Distribution System Location District Wide Project Manager Engineering Total Project Cost $500,000 Prior Years Budget N/A Start Date July 2017 Estimated Completion June 2018 Capital Requests Perennial Budget Request Project Description The District’s service area covers all of the City of Highland, and portions of the City and County of San Bernardino. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obliged to relocated its facilities. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A FISCAL YEAR BUDGET 2017-2018156 Facility Relocations PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Land and Land Preparation - - - - - - Construction (Contract) 85,000 85,000 85,000 85,000 85,000 425,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 157EAST VALLEY WATER DISTRICT facility rehabilitations Project Type Water Location Plant 28, 134, 140, and District Headquarters Project Manager Operations Total Project Cost $525,000 Prior Years Budget N/A Start Date July 2017 Estimated Completion June 2018 Capital Requests Perrenial Budget Request Project Description This project involves improvements to several District facilities, including: • Upgrades to Headquarters security in Boardroom and Customer Service areas • Rehabilitate deteriorating asphalt road and replace booster pump building roof at Plant 140 • Paint exterior vessels at Plant 28 • Paint exterior trim and refurbish laboratory at Plant 134 OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A FISCAL YEAR BUDGET 2017-2018158 Facility Rehabilitations PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 220,000 75,000 75,000 75,000 75,000 520,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 5,000 - - - - 5,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 225,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 525,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 225,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 525,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 225,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 525,000 159EAST VALLEY WATER DISTRICT wastewater main replacementorange street Project Type Replacement Wastewater Collection Main Location In an easement between Orange Street and Holly Circle Drive, 600 feet north of Piedmont Drive Project Manager Engineering Total Project Cost $75,000 Prior Years Budget $75,000 Start Date January 2017 Estimated Completion December 2017 Capital Requests Project Previously Programmed Project Description This project will replace, re-line or pipe-burst approximately 200 linear feet of wastewater main with offset joints and broken pipe defects. The 200 linear feet of 8-inch VCP is separated in the middle with a 10-foot- long piece of cast iron (CI) pipe. This CI is broken with a rock protruding into the pipe and the adjacent vitrified clay pipe is deformed. This pipe is in an easement with an 18-foot +/- deep, drop manhole at the east end on Holly Circle Drive. The back of the property is on a hillside and includes a drainage ravine on the east. This trunk pipe exclusively services about 20 homes. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A N Holly Circle Drive Or a n g e S t r e e t Lyn w o o d D r i v e Pie d m o n t D r i v e Holly Circle Drive FISCAL YEAR BUDGET 2017-2018160 Wastewater Main Replacement, Orange Street PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 75,000 - - - - 75,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 75,000 $ - $ - $ - $ - $ 75,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Reserves 75,000 - - - - 75,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 75,000 $ - $ - $ - $ - $ 75,000 161EAST VALLEY WATER DISTRICT wastewater main rehabilitation 4th street Project Type Replacement Wastewater Collection Main Location 4th Street between Waterman Avenue and Warm Creek Channel Project Manager Engineering Total Project Cost $200,000 Prior Years Budget $200,000 Start Date June 2017 Estimated Completion December 2017 Capital Requests Project Previously Programmed Project Description Repair and re-line 810 linear feet of 6-inch VCP wastewater main in 4th Street, between Waterman Avenue and the Warm Creek Channel. The existing pipe has cracks, fractures and breaks along the entire stretch between 3 manholes. A new 6-inch VCP main will replace the old. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A N 4th Street Kingman Street Monterey Street Wa t e r m a n A v e n u e Co o l e y S t r e e t 5th Street FISCAL YEAR BUDGET 2017-2018162 Wastewater Main Rehabilitation, 4th Street PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 200,000 - - - - 200,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 200,000 $ - $ - $ - $ - $ 200,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Reserves 200,000 - - - - 200,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 200,000 $ - $ - $ - $ - $ 200,000 163EAST VALLEY WATER DISTRICT wastewater main rehabilitation paloma road phase two Project Type Wastewater Location Paloma Road between Elmwood Road and Del Rosa Avenue Project Manager Engineering Total Project Cost $105,000 Prior Years Budget None Start Date January 2018 Estimated Completion June 2018 Capital Requests New Project Project Description This section of 6-inch diameter wastewater main is under sized with an 8-inch main upstream. A 6-inch diameter main provides more potential for main blockage to occur. Current standards require minimum 8-inch diameter for mains. This section of pipeline has 8 direct lateral connections and serves an additional 32 single family resident units upstream. Requires reconstruction of approximately 220 linear feet of pipeline and reconnections of 8 laterals. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A N Baseline Street De l R o s a A v e n u e Go l o n d r i n a D r i v e Paloma Road Paloma Road El m w o o d R o a d FISCAL YEAR BUDGET 2017-2018164 Wastewater Main Rehabilitation, Paloma Road Phase Two PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 105,000 - - - - 105,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 105,000 $ - $ - $ - $ - $ 105,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 105,000 $ - $ - $ - $ - $ 105,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 105,000 $ - $ - $ - $ - $ 105,000 165EAST VALLEY WATER DISTRICT wastewater main replacementferndale avenue Project Type Wastewater Location Ferndale Avenue from Alto Court to 200 feet north of 36th Street Project Manager Engineering Total Project Cost $210,000 Prior Years Budget N/A Start Date July 2017 Estimated Completion June 2018 Capital Requests New Project Project Description This section of 6-inch diameter wastewater main is under sized with an 9-inch main upstream. A 6-inch diameter main provides more potential for main blockage to occur. Current standards require minimum 8-inch diameter for mains. This section of pipeline has 9 direct lateral connections and serves approximately 400 single family resident units upstream. Approximately 600 linear feet of pipeline will be reconstructed with 9 lateral reconnections also required. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A N 35th Street Fe r n d a l e A v e n u e Co n e j o D r i v e Mo u n t a i n A v e n u e De l R o s a A v e n u e 36th Street Alto Court Bernard Court FISCAL YEAR BUDGET 2017-2018166 Wastewater Main Replacement, Ferndale Avenue PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 210,000 - - - - 210,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 210,000 $ - $ - $ - $ - $ 210,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 210,000 $ - $ - $ - $ - $ 210,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 210,000 $ - $ - $ - $ - $ 210,000 167EAST VALLEY WATER DISTRICT city creek manhole relocation Project Type Replacement Wastewater Collection Manhole Location City Creek between Baseline Road and Greenspot Road Project Manager Engineering Total Project Cost $250,000 Prior Years Budget $100,000 Start Date July 2015 Estimated Completion June 2018 Capital Requests Project Previously Programmed Project Description A wastewater manhole previously located to the north of the flow of City Creek is now exposed in the middle of the creek bed due to realignment of the creek caused by flooding in 2010. The ground over the attached 18-inch wastewater main running under the creek, has eroded to a cover of only 6 feet. This project will evaluate options for either protecting the wastewater facilities in place, relocating them, or eliminating the need for the wastewater facilities to cross the creek at this location. Project costs include implementation of the final solution. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A FISCAL YEAR BUDGET 2017-2018168 City Creek Manhole Relocation PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 150,000 - - - - 150,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 150,000 $ - $ - $ - $ - $ 150,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 150,000 $ - $ - $ - $ - $ 150,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 150,000 $ - $ - $ - $ - $ 150,000 169EAST VALLEY WATER DISTRICT sterling natural resource center (snrc) Project Type New Wastewater Treatment Location Southwest Corner of 5th Street and Del Rosa Drive Project Manager Engineering Total Project Cost $126,675,000 Prior Years Budget N/A Start Date January 2014 Estimated Completion June 2020 Capital Requests Previously Programmed Project Project Description In response to the drought and SBX7-7 which mandates EVWD to cut 20 percent of its use by the year 2020, the District is planning and constructing a recycled water facility. The facility will allow the EVWD to treat wastewater to a point that it can be recharged back into the groundwater basin and reused for domestic purpose. Initially the facility will treat approximately 6 MGD and will expand to treat ultimate build-out at 10 MGD. The project includes a water recycling plant, wastewater collection system upgrades and recycled water distribution facilities. OPERATING BUDGET IMPACT Additional Staff Salaries $1,000,000 Debt Service $5,325,000 annually on a low interest, State Revolving Fund Loan Maintenance $1,250,000 (estimated) for contract services and supplies. Contracted treatment paid to a third party of $7,900,000 would be eliminated. Utilities $750,000 (estimated) for additional electrical energy, natural gas, water, wastewater, and telephone/data communications will be required. FISCAL YEAR BUDGET 2017-2018170 Sterling Natural Resource Center PROJECT COST YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 175,000 $ 12,680,000 $ - $ - $ - $ 12,855,000 Land and Land Preparation - 4,900,000 - - - 4,900,000 Construction (Contract) - 42,000,000 56,200,000 - - 98,200,000 Project Mgmt/Inspection - 4,000,000 5,680,000 - - 9,680,000 Equipment/Furnishings - - - - - Materials - - - - - - EVWD Labor - 270,000 270,000 - - 540,000 Other (Legal) 500,000 - - - - 500,000 ANNUAL TOTAL $ 675,000 $ 63,850,000 $ 62,150,000 $ - $ - $ 126,675,000 PROJECT FUNDING YEAR 1 FY 2017-18 YEAR 2 FY 2018-19 YEAR 3 FY 2019-20 YEAR 4 FY 2020-21 YEAR 5 FY 2021-22 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 197,000 $ - $ - $ - $ - $ 197,000 Reserves 478,000 - - - - 478,000 Grants/Loans - 63,850,000 62,150,000 - - 126,000,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 675,000 $ 63,850,000 $ 62,150,000 $ - $ - $ 126,675,000 171EAST VALLEY WATER DISTRICT Definitions for technical terms and acronymns found in the budget document. GLOSSARY Definitions for technical terms and acronymns found in the budget document. • ACH: Automated Clearing House is an electronic network for financial transactions in the United States that processes large volumes of credit and debit transactions in batches. Credit transfers include direct deposit, payroll, and vendor payments • Acre Foot (AF): A water measurement equal to 325,851 gallons • AMI: Advanced Metering Infrastructure is the technology of collecting meter reads via a network • AMR: Automatic Meter Reading is the technology of collecting meter reads via a hand- held device within close proximity of the water meter • AQMD or SCAQMD: Air Quality Management District or South Coast Air Quality Management District is the air pollution agency responsible for regulating stationary sources of air pollution in the South Coast Air Basin, in Southern California • ASME: The American Society of Mechanical Engineers is a professional association that promotes the art, science, and practice of multidisciplinary engineering and allied sciences around the globe via continuing education, training and professional development, codes and standards, research, conferences and publications, government relations, and other forms of outreach • AWWA: American Water Works Association was established in 1881 and is the largest nonprofit, scientific, and educational association dedicated to managing and treating water • CAFR: Comprehensive Annual Financial Report is a set of U.S. government financial statements comprising the financial report of a state, municipal, or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board • Cal Fire: California Department of Forestry and Fire and Protection • Cal OES: California Office of Emergency Services is responsible for overseeing and coordinating emergency preparedness, response, recovery, and homeland security activities within the state of California FISCAL YEAR BUDGET 2017-2018172 • CalPERS: California Public Employees’ Retirement System is an agency in the California executive branch that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families • Cast Iron Pipe (CI): Pipe which has had historic use as a pressure pipe for transmission of water, gas and sewage, and as a water drainage pipe during the 19th and 20th centuries • CIP: Capital Improvement Plan • COLA: Cost of Living Adjustment • COSA: Cost of Service Analysis • DocuSign: Global leader in signing, sending, tracking, and storing documents securely and digitally • DOT: Department of Transportation • DWR: Department of Water Resources • EDU: An equivalent dwelling unit is defined by the Borough to be the measure of volume and strength of flow or expected flow of sanitary sewage equivalent to that generated by a single family residential establishment • Enterprise Fund: Revenues and expenditures of services are separated into separate funds with its own financial statements • EOC: Emergency Operations Center is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision, or other organization • ESRI: Environmental Systems Research Group is an international supplier of Geographic Information System (GIS) software, web GIS, and geodatabase management applications • EVWD: East Valley Water District • Fees: Charges for service that are based upon the cost of providing the service • FEMA: Federal Emergency Management Agency is an agency of the United States Department of Homeland Security, initially created by Presidential Reorganization Plan No. 3 of 1978 and implemented by two Executive Orders on April 1, 1979 • Fiscal Year (FY): The time frame in which the budget applies. This period is from July 1 through June 30 • FOG: Fats, oils, and grease • Full-Time Equivalent (FTE): A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. It is calculated by equating 2,080 hours of work per year with the full-time equivalent of one position; thus, one position would have an FTE of 1 • Fund: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives • Fund Equity: The excess of an entity’s assets over its liabilities; a negative Fund Equity is sometimes called a deficit • GAC: Granular Activated Carbon is a highly porous adsorbent material used during the water treatment process. It is used to remove tetrachloroethylene, also known as perchloroethylene (PCE) • GASB: Governmental Accounting Standards Board is a private, non-governmental organization who is the source of generally accepted accounting principles (GAAP) used by State and Local governments in the U.S. • GASB 68: A state or local government employer will report the Net Pension Liability associated with its defined benefit pension plan(s) that is administered through a trust or equivalent arrangement • Generally Accepted Accounting Principles (GAAP): Uniform minimum standards of, and guidelines for external financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompasses the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. The primary authoritative statements on the application of GAAP to state and local 173EAST VALLEY WATER DISTRICT governments are Government Accounting Standards Board (GASB) pronouncements. GAAP provides a standard by which to measure financial presentations • General Obligation Bonds: Bonds, the payment for which, the full faith and credit of the issuing government are pledged • Geographic Information System (GIS): An organized collection of computer hardware, software and geographic data designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information • GFOA: The Government Finance Officers Association represents public finance officials throughout the United States and Canada • HCP: Habitat Conservation Plan • Hundred Cubic Feet (HCF): Water billing measurement equal to 748 gallons • KPI: A Key Performance Indicator monitors progress towards meeting program objectives • MG: Million Gallon • MGD: Million Gallons Per Day • MOU: Memorandum of Understanding • MSA: Meter Service Area • NFWC: North Fork Water Company is a mutual water company that secures surface water from the Santa Ana River and other available sources for delivery to its shareholders • Purchase Order: A document issued to authorize a vendor or consultant to deliver specified merchandise or render a specified service for a stated estimated price • Revenue: Income generated by assessments, investments, connection fees, stand-by fees, and user charges • Reserve: An account set aside to meet unexpected costs • RFP: A request for proposal is a solicitation, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals • RFQ: A request for qualifications usually refers to the pre-qualification stage of the procurement process. Only those proponents who successfully respond to the RFQ and meet the qualification criteria will be included in the subsequent RFP solicitation process • SAR: Santa Ana River • SAWPA: Santa Ana Watershed Project Authority is an agency that works with planners, water experts, design and construction engineers, and other government agencies to identify issues and solutions, in order to resolve many water- related problems • SBCUSD: San Bernardino City Unified School District • SCADA: Supervisory Control and Data Acquisition generally refers to an industrial computer system that monitors and controls a process • SCE: Southern California Edison • SSMP: Sewer System Management Plan is a document that describes the activities our agency uses to manage our wastewater collection system effectively • SDRMA: Special District Risk Management Authority • SNRC: The District is planning and constructing a water recycling center called the Sterling Natural Resource Center • SWRCB: State Water Resources Control Board • UAL: Unfunded actuarial liability refers to the difference between the actuarial values of assets and the actuarial accrued liabilities • Valley District: San Bernardino Valley Municipal Water District was formed in 1954 as a regional agency to plan a long-range water supply for the San Bernardino Valley • Vitrified Clay Pipe (VCP): Pipe made from a blend of clay and shale that has been subjected to high temperature to achieve vitrification, a process which results in a hard, inert ceramic FISCAL YEAR BUDGET 2017-2018174 THIS PAGE IS LEFT BLANK INTENTIONALLY 175EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY Listing of categories of items for which money is spent or received. CHART OF ACCOUNTS The Chart of Accounts is a list of the different accounts used by the District to define each category of items for which money is spent or received. This list is used to organize finances and to separate expenditures, revenues, assets, and liabilities in order to allow for a clear understanding of EVWD’s financial status. Below is a directory of the District’s Chart of Accounts with a brief description of each account. • 5101 - Regular Labor: Regular salaries and wages for permanent full-time and part-time employees • 5102 - Temporary Labor: Costs for labor not permanently employed by the District • 5103 - Overtime: Employees that work more than their regular 40 hours per week • 5104 - Standby: Employees that are on call for emergencies during non-business hours, weekends, and holidays • 5200 - Benefits: Medical, dental, vision, retirement, and related benefits offered by the District • 6101 - Purchased Water: Cost to purchase imported water • 6102 - Groundwater Replenishment: Cost to pump groundwater from the basin • 6103 - Water Assessment: Cost of water shares directly related to North Fork Water Company • 6201 - Materials & Supplies: Items used in daily operations, repair, and maintenance • 6202 - Tools: Items used to perform repair and maintenance activities • 6203 - Office Supplies: Items such as pens, paper and other related desk accessories • 6204 - Chemicals: Used for the treatment of water and cleaning equipment and tools • 6205 - Conservation Rebates: Costs to reimburse customers for eligible conservation efforts • 6301 - Contract Services: Services rendered by consultants and contractors Listing of categories of items for which money is spent or received. FISCAL YEAR BUDGET 2017-2018176 • 6302 - Banking Services: Services fees charged by financial institutions, merchant banks, and payment processors • 6303 - Printing & Publishing: Costs for printing and producing District publications • 6304 - Legal Services: Costs for legal advice, consultation, contract review, and litigation • 6305 - Treatment Services: Outside treatment services for wastewater • 6306 - Rents & Leases: Rental and lease costs for buildings and equipment that are not owned by the District • 6307 - Uniforms: Costs for the purchase, rental and laundering of uniforms, and other sundries for employees • 6308 - Billing Services: Costs associated with printing and mailing customer utility bills • 6309 - Shut Off Notice Services: Costs associated with the printing and delivery of 48 Hour Notices; these costs are charged back to customers through a fee • 6310 - Street Services: Costs associated with street restoration after District performs repairs and maintenance to existing infrastructure • 6311 - Landscape Services: Costs to maintain landscape, sprinklers, and weed abatement throughout the District • 6312 - Janitorial Services: Costs to clean and maintain District facilities • 6313 - Facilities Repair: Tracking of minor repairs for District facilities • 6401 - Utilities: Cable, gas, and other utilities not including telephone and electricity • 6402 - Telephone: Land lines, cellular phones, and internet services • 6403 - Electricity: Electricity usage costs • 6404 - Fuel: Fuel costs for vehicles and generators • 6405 - Permits: Permit costs required by federal, state, and local regulatory agencies • 6406 - Postage: Costs for mailing bills, publications, and special deliveries • 6501 - Memberships & Dues: Subscriptions and memberships for associations and special groups • 6502 - Professional Development: Seminars, conferences, and travel costs for employee development • 6503 - Education Assistance: Tuition reimbursement for employees who attend school for a degree or certificate • 6504 - Meetings: Costs such as meals, parking, and registration that are not related to professional development • 6505 - Employee Recognition: Employee recognition costs to recognize excellent performance throughout the year • 6701 - General Insurance: General liability insurance for the District’s facilities and infrastructure development • 6702 - Insurance Claims: Cost of insurance claims paid during the fiscal year • 6703 - Cash Over/Short: Accounts for customer payment processing discrepancies • 6704 - Bad Debt: Account used to write off uncollectible customer unpaid water or wastewater charges • 6705 - Retiree Benefits: Other post-employment benefits reimbursed to District retirees 177EAST VALLEY WATER DISTRICT IN MEMORIAM In honor of the ones we have lost, we remember their dedication and years of service to the East Valley Water District community. This section of the District’s budget document is placed in gratitude for their commitment and contribution to public service. On October 21, 2016, Lois Hendricksen-Heflin passed away unexpectedly. She was born and raised in San Bernardino and served East Valley Water District for 30 years. On March 8, 2017, the District presented Lois’ family with Resolution 2017.04 recognizing her 30 years of service to our community. A permanent memorial has been added in the District’s demonstration garden as a space for reflection and rememberance in honor of Lois’ passing and for the other members of the East Valley Water District family who left us too soon. FISCAL YEAR BUDGET 2017-2018178 THIS PAGE IS LEFT BLANK INTENTIONALLY ENHANCE ANDpreserve THE QUALITY OF LIFE FOR OUR COMMUNITY THROUGH INNOVATIVE LEADERSHIP& PUBLIC SERVICE DISTRICT HEADQUARTERS 31111 Greenspot Road, Highland, CA 92346 (909) 889-9501 www.eastvalley.org DISTRICT BOARD MEETINGS Second and fourth Wednesday of each month District Headquarters Board Room, 5:30pm E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T OPERATING & CAPITAL BUDGETS JUNE 28, 2017 E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T DISTRICT-WIDE GOALS 2 E A S T V A L L E Y W A T E R D I S T R I C T E A S T V A L L E Y W A T E R D I S T R I C T PROPOSED GOALS & OBJECTIVES FISCAL YEAR 2017 -18 FINANCIALS E A S T V A L L E Y W A T E R D I S T R I C T4 WATER FUND FY 2017-18 TOTAL WATER BUDGET $24,047,000 BUDGET HIGHLIGHTS •Implementation Of Modified Phase 3 Water Tier Rates •Water Quality Solutions •Hydroelectric Power Generation •Preventative Maintenance Water Sales 60% Other Charges 3% Meter 37% SOURCE OF REVENUE Program Exenditures 66% Debt Service 17% Capital Expenditures 17% EXPENDITURES E A S T V A L L E Y W A T E R D I S T R I C T5 WASTEWATER FUND Collection Charges 36%Treatment Charges 63% Other Charges 1% SOURCE OF REVENUE Other Program Expenses 28% Treatment Expense 63% Debt Service 3%Capital 6% EXPENDITURES FY 2017-18 TOTAL WASTEWATER BUDGET $12,577,000 BUDGET HIGHLIGHTS •Increase in Wastewater Treatment Rates by City of San Bernardino •Continued Assessment and Repair of Collection System •Sterling Natural Resource Center E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T PROGRAM EXPENDITURE SUMMARY WATER FUND WASTEWATER FUND TOTAL Governing Board $ 160,300 $ 68,700 $ 229,000 General Administration 840,700 360,300 1,201,000 HR / Risk Management 591,500 253,500 845,000 Public Affairs 414,000 414,000 828,000 Conservation 575,000 -575,000 Finance 827,700 354,300 1,182,000 Information Technology 674,100 288,900 963,000 Customer Service 1,392,100 441,900 1,834,000 Meter Service 397,000 -397,000 Engineering 1,009,400 432,600 1,442,000 Water Treatment 890,000 -890,000 6 E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T PROGRAM EXPENDITURE SUMMARY WATER FUND WASTEWATER FUND TOTAL Water Production Administration $ 469,000 $ -$ 469,000 Source of Supply 2,654,000 -2,654,000 Pumps & Boosters 726,000 -726,000 Transmission & Distribution 223,000 -223,000 Water Quality 410,000 -410,000 Water Maintenance 2,021,000 -2,021,000 Maintenance Administration 198,000 22,000 220,000 Wastewater Maintenance -8,593,000 8,593,000 Facilities Maintenance 585,800 190,200 776,000 Fleet Maintenance 464,400 51,600 516,000 Total $ 15,523,000 $ 11,471,000 $ 26,994,000 7 E A S T V A L L E Y W A T E R D I S T R I C T DEBT SERVICE 2010 Bonds $2,586,000 2013 Bonds $585,000 SRF Loans $273,000 US Bank Loan $456,000 SBVMWD Loan $415,000 2017-18 Payments -$4,315,000 Debt Proceeds Used For Plant 134 Treatment Upgrade Plant 134 Hydro Electric Plant Administration/ Operations Facility Honeywell Energy Projects 4 Million Gallon Underground Tank 8 E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T OPERATING BUDGET SUMMARY WATER FUND WASTEWATER FUND TOTAL Revenue Sales & Services $ 23,345,000 $ 12,445,000 $ 35,790,000 Other Charges 577,000 110,000 687,000 Interest & Miscellaneous Revenue 125,000 22,000 147,000 Total Revenue $ 24,047,000 $ 12,577,000 $ 36,624,000 Expenditures Program Expenses $ 15,523,000 $ 11,471,000 $ 26,994,000 Debt Service 4,002,000 313,000 4,315,000 Capital Expenditures 4,105,000 793,000 4,898,000 Reserve Contributions 417,000 -417,000 Total Expenditures $ 24,047,000 $ 12,577,000 $ 36,624,000 9 E A S T V A L L E Y W A T E R D I S T R I C T PROPOSED GOALS & OBJECTIVES FISCAL YEAR 2017 -18 CAPITAL BUDGET E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T CAPITAL OUTLAY DESCRIPTION AMOUNT Fleet Vehicles $ 105,000 Emergency Generator 135,000 Office Equipment / Furniture 91,000 Planning Studies 260,000 CCTV Camera 20,000 Total $ 611,000 One-Time Purchases 11 E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T CAPITAL IMPROVEMENT PROJECTS DESCRIPTION AMOUNT Water Storage $1,230,000 Treatment Plant Modifications 2,350,000 Water / Wastewater Pipelines 2,200,000 Facilities Relocations / Rehabilitations 325,000 SNRC Water Recycling Plant 675,000 Total Project Costs $6,780,000 Funded by Current Operating Revenue $4,287,000 Funded by Prior Encumbrances / Reserves 2,493,000 Total Funding $ 6,780,000 12 E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T CAPITAL BUDGET FUNDING SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Capital Outlay $ 480,000 $ 131,000 $ 611,000 Capital Improvement Program 5,365,000 1,415,000 6,780,000 Total Expenditures 5,845,000 1,546,000 7,391,000 Operating Revenue 4,105,000 793,000 4,898,000 Reserves -478,000 478,000 Developer Fees 500,000 -500,000 Prior Year Encumbrances 1,240,000 275,000 1,515,000 Total Sources $ 5,845,000 $ 1,546,000 $ 7,391,000 13 E A S T V A L L E Y W A T E R D I S T R I C T PROPOSED GOALS & OBJECTIVES FISCAL YEAR 2017 -18 AUTHORIZED POSITIONS E A S T V A L L E Y W A T E R D I S T R I C T AUTHORIZED POSITIONS 15 •Total Authorized Full Time Positions: 68 −Part Time Temporary Positions: 4 •Requested Positions −Environmental Coordinator in Lieu of Assistant General Manager Bar chart does not include part time temporary positions. Program-Based Budgeting Increases Accountability and Transparency E A S T V A L L E Y W A T E R D I S T R I C TE A S T V A L L E Y W A T E R D I S T R I C T DISCUSSION