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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 01/24/2018REG ULA R BO A RD MEET IN G C losed Session Begins at 4:30 PM J anuary 24, 2018 - 5:30 PM 31111 Greenspot Road, Highland, C A 92346 AG E N D A "In order to comply with legal requirements for posting of agenda, only those items filed with the District C lerk 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". C A LL TO O RD ER RO LL C A LL O F BO A RD MEMBERS P U B L I C C O MME N T S 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 C hairman of the Board. Under the State of C alifornia Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. T he matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGE N D A - T his 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 REC ESS IN TO C LO SED SESSIO N C L OSE D SE S SI ON 2.C O N FEREN C E WIT H REA L P RO PERT Y N EG O T IATO RS (Government C ode Section 54956.8) Property: 25457 6th Street, Highland, C A 92346 District N egotiators: J ohn Mura, General Manager/C EO Negotiating Parties: C hampery Real Estate 2015, LLC Under Negotiation: Price and Terms of Payment 5:30 P M RE C ON VE N E ME E T I N G PLED G E O F A LLEG IA N C E RO LL C A LL O F BO A RD MEMBERS A N N O UN C EMEN T O F C LO S ED S ESS IO N A C T IO N S IT EMS P U B L I C C OMME N T S 3.AP P RO VAL O F C ON SE N T C AL E N D AR All matters listed under the C onsent C alendar are considered by the Board of Directors to be routine and will be enacted in one motion. T here 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 C onsent C alendar. a.December 2017 Disbursements: Accounts payable disbursements for the period include check numbers 251410 through 251530, bank drafts, and A C H Payments in the amount of $3,185,714.67 and $527,160.11 for payroll. b.Financial Statements for D ecember 2017 c.Approve Investment Report for Quarter Ended December 31, 2017 D I SC U SSI O N AN D P OS SI B L E AC T I O N I T E MS 4.San Bernardino Basin Groundwater C ouncil Framework Agreement 5.Review and Approve Update to C apital Assets Policy 7.4 6.Reject Board Room Renovation Project 7.Consider Update to the Board of Directors Evaluation Policy and General Manager/C EO Evaluation Policy RE P O RT S 8.Board of Directors' Reports 9.General Manager/C EO Report 10.Legal C ounsel Report 11.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agend a pac ket are available for p ublic ins p ectio n in the Dis tric t's o ffice lo cated at 31111 G reens pot R d., Highland, during no rmal b usines s hours . Also, s uc h d o cuments are available o n the Dis tric t's web s ite at www.eas tvalley.o rg sub ject to s taff's ab ility to post the d o cuments b efo re the meeting. P urs uant to G overnment C o d e S ec tion 54954.2(a), any reques t fo r a d is ab ility-related mo dific ation or ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve- agendized p ublic meeting s hould b e d irected to the Dis tric t C lerk at (909) 885-4900 at leas t 72 hours prior to said meeting. BOARD AGENDA STAFF REPORT Agenda Item #3.a. Meeting Date: January 24, 2018 Consent Item To: Governing Board Members From: General Manager/CEO Subject: December 2017 Disbursements: Accounts payable disbursements for the period include check numbers 251410 through 251530, bank drafts, and ACH Payments in the amount of $3,185,714.67 and $527,160.11 for payroll. RECOMMENDATION: Staff recommends that the Board of Directors review and approve the District’s expense disbursements for the period December 1, 2017 through December 31, 2017 in the amount of $3,712,874.78. BACKGROUND / ANALYSIS: In the continued effort to be fiscally transparent, the payment register for supplies, materials, services, and payroll for December 2017 is attached for review and approval. This process provides the Board and the public an opportunity to review the expenses of the District. Accounts Payable is processed weekly, while payroll is processed bi-weekly. Information to justify each expenditure is available through the Finance Department. Accounts payable disbursements for the period include check numbers 251410 through 251530, bank drafts, and ACH Payments in the amount of $3,185,714.67 and $527,160.11 for payroll. Significant expenses greater than or equal to $50,000 are further explained below: Recommended by: John Mura General Manager/CEO Respectfully submitted: Brian Tompkins Chief Financial Officer AGENCY GOALS AND OBJECTIVES Goal and Objectives II - Maintain a Commitment to Sustainability, Transparency, and Accountability (A) - Practice transparent & accountable fiscal management REVIEW BY OTHERS: This agenda item has been reviewed by the Finance Department. FISCAL IMPACT Sufficient funds have been budgeted in the adopted FY 2017-18 Budget. ATTACHMENTS: Description Type December 2017 Payment Register Backup Material PAYMENT REGISTER DECEMBER 1, 2017 - DECEMBER 31, 2017 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 12/1/2017 251410 GWEN MARLOWE CATERING 3,528.00 12/1/2017 251411 SWRCB-DWOCP 80.00 12/6/2017 251412 ANNE MCCLELLIAN 35.09 12/6/2017 251413 MORE CASH FOR HOMES, LLC 109.52 12/6/2017 251414 FELICIA BEDFORD 22.20 12/6/2017 251415 ESCUTIA 401K PSP 78.12 12/6/2017 251416 JOSEPHINE L MIRACLE 73.34 12/6/2017 251417 ERIC COKER 22.75 12/6/2017 251418 BRECKENRIDGE PROPERTY FUND 2016 LLC 131.11 12/6/2017 251419 Barbara Lukacs 200.00 12/6/2017 251420 Georgette Harris 30.31 12/6/2017 251421 Jesus Gallegos 100.00 12/6/2017 251422 ANTHESIS (FORMERLY POMONA VALLEY WORKSHOP) 2,354.63 12/6/2017 251423 ASBCSD 64.00 12/6/2017 251424 BOYLIN MANAGEMENT INSTITUTE 150.00 12/6/2017 251425 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 87.96 12/6/2017 251426 BUGGY ROGERS PAINTING 5,750.00 12/6/2017 251427 BURGESS MOVING & STORAGE 899.64 12/6/2017 251428 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 510.48 12/6/2017 251429 CALIFORNIA BANK & TRUST 133,420.61 12/6/2017 251430 CHEM-TECH INTERNATIONAL INC 1,413.84 12/6/2017 251431 CINTAS CORPORATION (UNIFORMS) 602.79 12/6/2017 251432 CULLIGAN OF ONTARIO 50.00 12/6/2017 251433 DANIELS TIRE SERVICE, INC 906.83 12/6/2017 251434 DENNIS SEARCY 242.65 12/6/2017 251435 DIB'S SAFE & LOCK SERVICE 60.00 12/6/2017 251436 EYE MED VISION CARE 1,211.20 12/6/2017 251437 FAIRVIEW FORD SALES,INC 324.42 12/6/2017 251438 GARY YOUNG 547.98 12/6/2017 251439 GWEN MARLOWE CATERING 3,528.00 12/6/2017 251440 HATFIELD BUICK 117.41 12/6/2017 251441 HENRY SOWLE 547.98 12/6/2017 251442 HIGHLAND EQUIPMENT RENTAL 37.93 12/6/2017 251443 HUB CONSTRUCTION SPECIALTIES 919.73 12/6/2017 251444 INLAND WATER WORKS SUPPLY CO 432.00 12/6/2017 251445 K & L HARDWARE 121.14 12/6/2017 251446 MICHAEL REARDON 464.78 12/6/2017 251447 NAPA AUTO PARTS 8.61 12/6/2017 251448 RG3 METER COMPANY 955.74 12/6/2017 251449 SAFETY KLEEN CORP 356.32 12/6/2017 251450 SO CAL GAS 255.85 12/6/2017 251451 SOUTHERN CALIFORNIA EDISON COMPANY 26.83 12/6/2017 251452 UNITED PARCEL SERVICE, INC. 18.90 12/6/2017 251453 VALLEY OFFICE EQUIPMENT 12.35 PAYMENT REGISTER DECEMBER 1, 2017 - DECEMBER 31, 2017 Page 1 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 12/12/2017 251454 CELERINA C ESPEJO 16.76 12/12/2017 251455 GUSTAVO BUIGUES 23.23 12/12/2017 251456 IRENE HENSEL 2,060.28 12/12/2017 251457 IRENE HENSEL 37.36 12/12/2017 251458 CODRIN MIHAI 960.28 12/12/2017 251459 SHIRLEY DEMAIO 6.46 12/12/2017 251460 SHARK INVESTMENTS 14.89 12/12/2017 251461 REGINA DUNCAN 20.82 12/12/2017 251462 MICHEL MARABLE 131.58 12/13/2017 251463 ANTHESIS (FORMERLY POMONA VALLEY WORKSHOP) 3,887.01 12/13/2017 251464 BAVCO APPARATUS AND VALVE CO. 122.98 12/13/2017 251465 BILL & WAGS INC. 324.84 12/13/2017 251466 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 459.97 12/13/2017 251467 CALGON CARBON CORPORATION 269.38 12/13/2017 251468 COAST FITNESS REPAIR SHOP 250.00 12/13/2017 251469 CSR AIR CONDITIONING & HEATING 1,185.00 12/13/2017 251470 CWEA 265.00 12/13/2017 251471 FAIRVIEW FORD SALES,INC 388.98 12/13/2017 251472 FIRST CHOICE SERVICES 425.04 12/13/2017 251473 FLEET MANAGEMENT DEPARTMENT 265.02 12/13/2017 251474 FRONTIER COMMUNICATIONS 105.42 12/13/2017 251475 G & R REFRIGERATION 116.55 12/13/2017 251476 HIGHLAND EQUIPMENT RENTAL 41.47 12/13/2017 251477 INLAND DESERT SECURITY & COMMUNICATIONS, INC 526.25 12/13/2017 251478 K & L HARDWARE 46.03 12/13/2017 251479 LOWEL TRASK - VACUUMS ETC. 115.00 12/13/2017 251480 MILESTONE TROPHIES & AWARDS 64.65 12/13/2017 251481 NATIONAL CONSTRUCTION RENTALS 158.49 12/13/2017 251482 SOUTHERN CALIFORNIA EDISON COMPANY 160,036.10 12/13/2017 251483 ST. BERNARDINE MEDICAL CENTER 144.00 12/13/2017 251484 SWRCB 17,209.35 12/13/2017 251485 SWRCB 13,257.00 12/13/2017 251486 TYLER TECHNOLGIES 412.50 12/13/2017 251487 UNIVERSAL SELF STORAGE HIGHLAND 2,472.00 12/13/2017 251488 VALERO MARKETING & SUPPLY COMP 9,668.02 12/18/2017 251489 NGAI HEI SOOHOO 45.41 12/18/2017 251490 VILLA DEL ROSA 37.50 12/18/2017 251491 TRINITY REDEVELOPMENT INC. 72.71 12/18/2017 251492 AMY D GANO 42.38 12/18/2017 251493 ILADA BIRKEMO 42.99 12/18/2017 251494 GLEN BEACH 78.71 12/18/2017 251495 BRECKENRIDGE PROPERTY FUND 2016 LLC 135.73 12/18/2017 251496 HONG HOANG 8.94 12/18/2017 251497 MORGAN PICKS 1 LLC 161.26 12/18/2017 251498 SALLY MARKS 1,046.99 12/19/2017 251499 ADVANCED OFFICE, IMAGING PLUS 409.79 12/19/2017 251500 AT&T 49.55 12/19/2017 251501 CHEM-TECH INTERNATIONAL INC 3,888.06 12/19/2017 251502 CINTAS CORPORATION (UNIFORMS) 628.20 12/19/2017 251503 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 9,005.00 12/19/2017 251504 EAST VALLEY WATER DISTRICT 200.00 12/19/2017 251505 FASTENAL COMPANY 119.88 12/19/2017 251506 FLEET MANAGEMENT DEPARTMENT 237.98 PAYMENT REGISTER DECEMBER 1, 2017 - DECEMBER 31, 2017 Page 2 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 12/19/2017 251507 FRONTIER COMMUNICATIONS 480.32 12/19/2017 251508 FRONTIER COMMUNICATIONS 424.55 12/19/2017 251509 HATFIELD BUICK 47.36 12/19/2017 251510 IDEA HALL 24,591.29 12/19/2017 251511 INLAND WATER WORKS SUPPLY CO 4,584.77 12/19/2017 251512 JAMES TRAMMELL 100.00 12/19/2017 251513 JOHN MURA 32.38 12/19/2017 251514 K & L HARDWARE 95.91 12/19/2017 251515 PILAR ONATE 13,500.00 12/19/2017 251516 PROMANTEK, INC. C/O SYSTEM SIX BOOKEEPING 4,141.20 12/19/2017 251517 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 696,051.15 12/19/2017 251518 STAPLES BUSINESS ADVANTAGE 1,134.25 12/19/2017 251519 U.S. BANCORP SERVICE CENTER 35,339.52 12/19/2017 251525 UNITED PARCEL SERVICE, INC. 17.33 12/19/2017 251526 V.I.P. DOORS & GATES INC 1,391.00 12/19/2017 251527 WATER EDUCATION FOUNDATION 2,011.00 12/20/2017 251528 DENISE DITTEMORE 200.00 12/20/2017 251529 JACK CHEN 350.00 12/20/2017 251530 KENNETH POSEY 100.00 BANK DRAFTS 12/1/2017 DFT0002418 CA SDI Tax 1,807.53 12/1/2017 DFT0002419 State Payroll Tax 12,137.75 12/1/2017 DFT0002420 Social Security 241.54 12/1/2017 DFT0002422 Medicare 8,727.16 12/1/2017 DFT0002423 Federal Payroll Tax 36,666.80 12/1/2017 DFT0002440 CALPERS/ MEDICAL 84,838.82 12/4/2017 DFT0002441 MERCHANT BANKCD 272.68 12/5/2017 DFT0002442 PayNearMe, Inc. 143.28 12/11/2017 DFT0002444 PayNearMe, Inc. 187.06 12/11/2017 DFT0002445 TRANSFIRST DISCOUNT 13,224.31 12/12/2017 DFT0002447 CALPERS/ DEFERRED COMPENSATION 15,143.57 12/12/2017 DFT0002448 CALPERS/ RETIREMENT 12,286.82 12/12/2017 DFT0002449 CALPERS/ RETIREMENT 3,260.67 12/12/2017 DFT0002450 CALPERS/ RETIREMENT 18,663.82 12/12/2017 DFT0002451 CALPERS/ RETIREMENT 230.02 12/12/2017 DFT0002452 CALPERS/ RETIREMENT 3,199.13 12/12/2017 DFT0002453 CALPERS/ RETIREMENT 824.38 12/12/2017 DFT0002454 CALPERS/ RETIREMENT 61.38 12/12/2017 DFT0002455 CALPERS/ RETIREMENT 153.05 12/12/2017 DFT0002459 STATE DISBURSEMENT UNIT 3,248.97 12/12/2017 DFT0002461 FORTE, ACH DIRECT INC, ACH FEES 6,694.61 12/12/2017 DFT0002462 PayNearMe, Inc. 55.72 12/14/2017 DFT0002487 VERIFONE INC 22.00 12/15/2017 DFT0002446 CA SDI Tax 1,235.36 12/15/2017 DFT0002456 Federal Payroll Tax 28,905.25 12/15/2017 DFT0002457 Medicare 6,631.39 12/15/2017 DFT0002458 Social Security 253.12 12/15/2017 DFT0002460 State Payroll Tax 9,378.61 12/15/2017 DFT0002463 State Payroll Tax 858.08 12/15/2017 DFT0002464 Medicare 504.30 12/15/2017 DFT0002465 Federal Payroll Tax 2,730.40 12/15/2017 DFT0002466 CA SDI Tax 59.31 PAYMENT REGISTER DECEMBER 1, 2017 - DECEMBER 31, 2017 Page 3 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 12/19/2017 DFT0002468 CA SDI Tax 1,351.09 12/19/2017 DFT0002469 Federal Payroll Tax 28,863.92 12/19/2017 DFT0002485 LAIF INVESTMENT AGENCY 1,325,000.00 12/20/2017 DFT0002470 State Payroll Tax 9,232.50 12/20/2017 DFT0002471 Social Security 956.58 12/20/2017 DFT0002472 STATE DISBURSEMENT UNIT 2,442.47 12/20/2017 DFT0002473 Medicare 6,733.42 12/20/2017 DFT0002474 CALPERS/ DEFERRED COMPENSATION 14,972.56 12/20/2017 DFT0002475 CALPERS/ RETIREMENT 3,402.64 12/20/2017 DFT0002476 CALPERS/ RETIREMENT 230.02 12/20/2017 DFT0002477 CALPERS/ RETIREMENT 71.50 12/20/2017 DFT0002478 CALPERS/ RETIREMENT 50.23 12/20/2017 DFT0002479 CALPERS/ RETIREMENT 60.45 12/20/2017 DFT0002480 CALPERS/ RETIREMENT 18,323.72 12/20/2017 DFT0002481 CALPERS/ RETIREMENT 12,047.91 12/20/2017 DFT0002482 CALPERS/ RETIREMENT 824.38 12/20/2017 DFT0002483 CALPERS/ RETIREMENT 3,468.09 12/20/2017 DFT0002484 CALPERS/ RETIREMENT 153.05 12/20/2017 DFT0002486 PayNearMe, Inc. 274.62 12/21/2017 DFT0002489 CBB 2,621.37 12/22/2017 DFT0002494 VERIFONE INC 22.00 12/28/2017 DFT0002493 VERIFONE INC 22.00 ACH PAYMENTS 12/6/2017 10003530 ADS LLC 1,600.00 12/6/2017 10003531 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 420.18 12/6/2017 10003532 BARRY'S SECURITY SERVICES, INC 1,709.00 12/6/2017 10003533 CINTAS CORPORATION (FIRST AID) 199.99 12/6/2017 10003534 CLEARFLY COMMUNATIONS 1,340.27 12/6/2017 10003535 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 588.00 12/6/2017 10003536 DAN DIETZ 398.73 12/6/2017 10003537 DANGELO CO INC 311.18 12/6/2017 10003538 DAVID HERNANDEZ 360.79 12/6/2017 10003539 DIMENSION DATA NORTH AMERICA 1,198.18 12/6/2017 10003540 EXCEL LANDSCAPE, ICN 12,200.00 12/6/2017 10003541 EZEQUIEL ELECTRIC, INC. 2,715.50 12/6/2017 10003542 FERGUSON ENTERPRISES, INC. 11,583.13 12/6/2017 10003543 GARY STURDIVAN 614.90 12/6/2017 10003544 GORDON GRANT 534.34 12/6/2017 10003545 INFOBOND, INC 530.00 12/6/2017 10003546 LEGEND PUMP AND WELL 1,584.00 12/6/2017 10003547 LINCOLN NATIONAL LIFE INS CO. 1,974.18 12/6/2017 10003548 MANAGED HEALTH NETWORK 238.56 12/6/2017 10003549 MATT ARMITAGE 86.18 12/6/2017 10003550 MICHAEL HENDERSON 599.78 12/6/2017 10003551 PLUS 1 PERFORMANCE 19.05 12/6/2017 10003552 QUINN COMPANY 390.00 12/6/2017 10003553 RAYMOND ROYBAL 85.00 12/6/2017 10003554 REBECCA KASTEN 700.00 12/6/2017 10003555 THOMAS P ORTON 402.83 12/6/2017 10003556 UNDERGROUND SERVICE ALERT 208.00 12/6/2017 10003557 WAXIE SANITARY SUPPLY 2,028.04 12/13/2017 10003558 ADCOMP SYSTEMS 319.29 PAYMENT REGISTER DECEMBER 1, 2017 - DECEMBER 31, 2017 Page 4 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 12/13/2017 10003559 BARRY'S SECURITY SERVICES, INC 1,538.00 12/13/2017 10003560 BRITHINEE ELECTRIC 8,306.17 12/13/2017 10003561 CINTAS CORPORATION (FIRST AID) 143.31 12/13/2017 10003562 CLIFF'S PEST CONTROL 323.00 12/13/2017 10003563 CORELOGIC SOLUTIONS INC. 315.00 12/13/2017 10003564 EMPIRE WEST PIPE, LLC 132.34 12/13/2017 10003565 EVWD EMPLOYEES EVENTS ASSOC 329.50 12/13/2017 10003566 FERGUSON ENTERPRISES, INC. 5,017.08 12/13/2017 10003567 FMB TRUCK OUTFITTERS, INC 1,838.60 12/13/2017 10003568 FSA Only/East Valley Water District 1,891.72 12/13/2017 10003569 INFOSEND, INC 51,623.29 12/13/2017 10003570 JC LAW FIRM 66,973.26 12/13/2017 10003571 JESUS FABIAN VALENZUELA 73.00 12/13/2017 10003572 JOHN WITHERS ASSOCIATES 6,000.00 12/13/2017 10003573 JOSE MILLAN 2,720.00 12/13/2017 10003574 MILLER SPATIAL SERVICES, LLC 4,930.00 12/13/2017 10003575 NEOFUNDS BY NEOPOST 500.00 12/13/2017 10003576 NEOPOST USA INC 902.04 12/13/2017 10003577 P.A.D. PALM AUTO DETAIL 300.00 12/13/2017 10003578 POWERSTRIDE BATTERY CO. 204.18 12/13/2017 10003579 SAFETY COMPLIANCE COMPANY 200.00 12/13/2017 10003580 SHRED-IT US JV LLC 113.24 12/13/2017 10003581 VERIZON WIRELESS 7,023.96 12/13/2017 10003583 WORTHINGTON PARTNERS, LLC 10,000.00 12/19/2017 10003584 AIRGAS, USA LLC 158.70 12/19/2017 10003585 ANTHONY'S IRRIGATION 16,920.00 12/19/2017 10003586 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 791.45 12/19/2017 10003587 ASHOK K. DHINGRA, AKD CONSULTING 13,765.73 12/19/2017 10003588 BARRY'S SECURITY SERVICES, INC 1,732.75 12/19/2017 10003589 BOOT BARN, INC 442.77 12/19/2017 10003590 CALIFORNIA TOOL & WELDING SUPPLY 8.34 12/19/2017 10003591 ERENDIDA GONZALEZ 525.00 12/19/2017 10003592 EVWD EMPLOYEES EVENTS ASSOC 354.50 12/19/2017 10003593 EZEQUIEL ELECTRIC, INC. 1,325.00 12/19/2017 10003594 FERGUSON ENTERPRISES, INC. 2,511.07 12/19/2017 10003595 FILARSKY & WATT LLP 3,700.00 12/19/2017 10003596 FMB TRUCK OUTFITTERS, INC 1,246.30 12/19/2017 10003597 FSA Only/East Valley Water District 1,841.72 12/19/2017 10003598 GONZALEZ, QUINTANA & HUNTER, LLC 8,000.00 12/19/2017 10003599 HAAKER EQUIPMENT COMPANY 135.59 12/19/2017 10003600 ICON ENTERPRISES, INC DBA CIVICPLUS 971.25 12/19/2017 10003601 INDUSTRIAL RUBBER & SUPPLY 714.32 12/19/2017 10003602 JOSE MILLAN 360.00 12/19/2017 10003603 LEGEND PUMP AND WELL 3,578.00 12/19/2017 10003604 MCMASTER-CARR 75.35 12/19/2017 10003605 MILLER SPATIAL SERVICES, LLC 3,170.00 12/19/2017 10003606 MINUTEMAN PRESS OF RANCHO CUCAMONGA 1,399.92 12/19/2017 10003607 NETWORK FLEET, INC 124.75 12/19/2017 10003608 PLUMBERS DEPOT INC. 754.11 12/19/2017 10003609 QUINN COMPANY 1,565.24 12/19/2017 10003610 SEASONS AND REASONS, LLC, 3,537.50 12/19/2017 10003611 THE WINNER INDUSTRIAL SUPPLY INC 1,773.91 12/19/2017 10003612 VOLOGY, INC. 6,411.87 PAYMENT REGISTER DECEMBER 1, 2017 - DECEMBER 31, 2017 Page 5 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 12/19/2017 10003613 VULCAN MATERIALS COMPANY 609.47 12/19/2017 10003614 WORTHINGTON PARTNERS, LLC 10,000.00 TOTAL 3,185,714.67$ PAYMENT REGISTER DECEMBER 1, 2017 - DECEMBER 31, 2017 Page 6 of 6 BOARD AGENDA STAFF REPORT Agenda Item #3.b. Meeting Date: January 24, 2018 Consent Item To: Governing Board Members From: General Manager/CEO Subject: Financ ial Statements for December 2017 RECOMMEND ATION: Staff recommends that the Board of Directors accept and file the attached financ ial statements as of, and for the period ended, December 31, 2017. BACKGROUND / ANALYSIS: Included herewith for the Board’s review is a summary of East Valley Water District’s financ ial results, as of December 31, 2017. AGENCY GOALS AND OBJECTIVES Goal and Objectives II - Maintain a Commitment to Sustainability, Transparency, and Accountability (A) - Practice transparent & accountable fiscal management REVIEW BY OTHERS: This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: John Mura General Manager/CEO Respectfully submitted: Brian Tompkins Chief Financial Officer ATTACHMENTS: Description Type December 2017 Financial Statement Monthly Backup Material December 2017 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW DECEMBER 31, 2017 page | 1 FINANCIAL STATEMENTS MONTHLY REVIEW DECEMBER 31, 2017 page | 2 FINANCIAL STATEMENTS MONTHLY REVIEW DECEMBER 31, 2017 page | 3 FINANCIAL STATEMENTS MONTHLY REVIEW DECEMBER 31, 2017 page | 4 FINANCIAL STATEMENTS MONTHLY REVIEW DECEMBER 31, 2017 page | 5 FINANCIAL STATEMENTS MONTHLY REVIEW DECEMBER 31, 2017 page | 6 WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 9,315,192.04$ 2,527,479.26$ 11,842,671.30$ 02 Investments 3,443,012.71 1,895,786.56 5,338,799.27 03 Accounts Receivable, Net 3,603,527.17 257,451.65 3,860,978.82 04 ‐Interest Receivable 5,951.06 3,377.19 9,328.25 14*05 Other Receivables 391,076.12 - 391,076.12 06 Due from other Governments 115,675.21 - 115,675.21 08 Inventory 285,834.59 6,721.16 292,555.75 09 Prepaid Expenses 208,309.45 18,662.53 226,971.98 17,368,578.35 4,709,478.35 22,078,056.70 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 4,739,396.25 755,413.09 5,494,809.34 11 Capital Assets not being Depreciated 18,961,223.72 10,388,664.86 29,349,888.58 13 Capital Assets, Net 109,619,673.10 19,788,696.43 129,408,369.53 133,320,293.07 30,932,774.38 164,253,067.45 Total Assets:150,688,871.42 35,642,252.73 186,331,124.15 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 138,481.81 - 138,481.81 25 Deferred Outflows - Pensions 2,374,775.29 669,809.71 3,044,585.00 153,202,128.52 36,312,062.44 189,514,190.96 Current Liabilities: 22 Accounts Payable and Accrued Expenses 720,018.88 29,959.97 749,978.85 23 Accrued Payroll and Benefits 2,008.18 - 2,008.18 15 Customer Service Deposits 1,625,648.61 - 1,625,648.61 16 Construction Advances and Retentions 106,000.00 3,500.00 109,500.00 17 Accrued Interest Payable 414,532.39 54,931.25 469,463.64 18 Current Portion of Compensated Absences 262,722.88 60,915.12 323,638.00 19 Current Portion of Long-Term Debt 1,930,404.52 117,958.00 2,048,362.52 5,061,335.46 267,264.34 5,328,599.80 Non-Current Liabilities: 20 Compensated Absences, less current portion 65,646.15 8,785.71 74,431.86 28 Net Pension Liability 7,819,274.72 2,205,437.28 10,024,712.00 21 Long Term Debt, Less Current Portion 45,455,561.58 4,635,698.29 50,091,259.87 27 Other Liabilities 7,261.71 4,426.18 11,687.89 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 405,103.37 114,260.63 519,364.00 53,752,847.53 6,968,608.09 60,721,455.62 58,814,182.99 7,235,872.43 66,050,055.42 31 Equity 87,545,567.50 28,402,586.56 115,948,154.06 87,545,567.50 28,402,586.56 115,948,154.06 Tot Total Revenue 14,596,369.24 6,778,785.41 21,375,154.65 Tot Total Expense 7,753,991.21 6,105,181.96 13,859,173.17 6,842,378.03 673,603.45 7,515,981.48 94,387,945.53 29,076,190.01 123,464,135.54 153,202,128.52$ 36,312,062.44$ 189,514,190.96$ Unaudited As of December 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: Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Page 1 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,273,319.28$ 9,554,906.24$ 14,500,000.00$ -$ -$ -$ 14,500,000.00$ 4,945,093.76$ 42 Meter Charges 746,448.29 4,471,715.19 8,845,000.00 - - - 8,845,000.00 4,373,284.81 43 Penalties 41,252.37 309,034.66 445,500.00 3,123.57 22,421.60 40,000.00 485,500.00 154,043.74 44 Wastewater System Charges - - - 380,249.53 2,352,192.40 4,545,000.00 4,545,000.00 2,192,807.60 45 Wastewater Treatment Charges - - - 682,559.71 4,379,006.44 7,900,000.00 7,900,000.00 3,520,993.56 46 Other Operating Revenue 12,981.19 166,968.50 131,500.00 250.00 5,000.00 70,000.00 201,500.00 29,531.50 47 Non Operating Revenue 26,991.34 93,744.65 125,000.00 2,380.14 20,164.97 22,000.00 147,000.00 33,090.38 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 2,100,992.47 14,596,369.24 24,047,000.00 1,068,562.95 6,778,785.41 12,577,000.00 36,624,000.00 15,248,845.35 - - - - - Expense by Category 51 Labor 504,614.14 2,103,449.23 4,768,500.00 144,634.75 601,855.77 1,403,500.00 6,172,000.00 3,466,695.00 56 Benefits 139,295.48 1,294,451.13 2,218,000.00 39,305.00 367,748.29 658,000.00 2,876,000.00 1,213,800.58 63 Contract Services 214,333.89 1,524,216.91 3,513,100.00 750,342.76 4,752,841.71 8,864,900.00 12,378,000.00 6,100,941.38 65 Professional Development 16,216.90 89,821.29 270,300.00 5,510.91 36,095.58 103,700.00 374,000.00 248,083.13 53 Overtime 26,893.32 138,626.56 269,600.00 8,679.26 32,659.57 19,400.00 289,000.00 117,713.87 62 Materials and Supplies 75,604.70 528,125.01 1,120,200.00 10,274.62 60,614.40 121,800.00 1,242,000.00 653,260.59 64 Utilities 190,213.29 1,024,430.09 2,353,800.00 18,759.92 60,078.88 182,200.00 2,536,000.00 1,451,491.03 52 Temporary Labor - 1,814.40 10,500.00 - 777.60 4,500.00 15,000.00 12,408.00 67 Other 5,828.14 191,523.18 260,000.00 2,497.76 80,327.66 111,000.00 371,000.00 99,149.16 54 Standby 3,320.00 15,706.59 38,000.00 1,200.00 2,320.00 2,000.00 40,000.00 21,973.41 61 Water Supply - 647.15 801,000.00 - - - 801,000.00 800,352.85 71 -Debt Service - 841,179.67 4,002,000.00 - 109,862.50 313,000.00 4,315,000.00 3,363,957.83 81 -Capital Improvement 6,573.52 38,665.31 3,525,000.00 59,375.19 621,151.94 1,140,000.00 4,665,000.00 4,005,182.75 82 -Capital Outlay 19.42 117,788.73 480,000.00 - 34,042.70 131,000.00 611,000.00 459,168.57 83 -Accounting Income Add back - (156,454.04) - (59,375.19) (655,194.64) - - 811,648.68 Expense Total: 1,182,912.80 7,753,991.21 23,630,000.00 981,204.98 6,105,181.96 13,055,000.00 36,685,000.00 22,825,826.83 Total Surplus (Deficit): 918,079.67$ 6,842,378.03$ -$ 87,357.97$ 673,603.45$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended December 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 1,273,319.28$ 9,554,906.24$ 14,500,000.00$ -$ -$ -$ 14,500,000.00$ 4,945,093.76$ 42 Meter Charges 746,448.29 4,471,715.19 8,845,000.00 - - - 8,845,000.00 4,373,284.81 43 Penalties 41,252.37 309,034.66 445,500.00 3,123.57 22,421.60 40,000.00 485,500.00 154,043.74 44 Wastewater System Charges - - - 380,249.53 2,352,192.40 4,545,000.00 4,545,000.00 2,192,807.60 45 Wastewater Treatment Charges - - - 682,559.71 4,379,006.44 7,900,000.00 7,900,000.00 3,520,993.56 46 Other Operating Revenue 12,981.19 166,968.50 131,500.00 250.00 5,000.00 70,000.00 201,500.00 29,531.50 47 Non Operating Revenue 26,991.34 93,744.65 125,000.00 2,380.14 20,164.97 22,000.00 147,000.00 33,090.38 Revenue Total: 2,100,992.47 14,596,369.24 24,047,000.00 1,068,562.95 6,778,785.41 12,577,000.00 36,624,000.00 15,248,845.35 Progra 1000 - Board of Directors 9,062.18 47,311.62 160,300.00 3,401.89 19,693.10 68,700.00 229,000.00 161,995.28 Progra 2000 - General Administration 115,966.87 518,332.75 840,700.00 47,663.63 212,403.72 360,300.00 1,201,000.00 470,263.53 Progra 2100 - Human Resources 45,369.88 344,269.63 591,500.00 19,444.12 147,050.76 253,500.00 845,000.00 353,679.61 Progra 2200 - Public Affairs 38,730.10 152,082.36 414,000.00 38,687.75 150,999.35 414,000.00 828,000.00 524,918.29 Progra 2300 - Conservation 36,481.20 148,453.76 575,000.00 - - - 575,000.00 426,546.24 Progra 3000 - Finance 68,459.80 409,665.64 827,700.00 29,323.48 165,370.67 354,300.00 1,182,000.00 606,963.69 Progra 3200 - Information Technology 47,654.90 295,329.53 674,100.00 20,423.38 126,569.09 288,900.00 963,000.00 541,101.38 Progra 3300 - Customer Service 113,331.02 612,477.55 1,332,600.00 32,488.93 210,266.46 416,400.00 1,749,000.00 926,255.99 Progra 3400 - Meter Service 33,930.65 185,038.65 397,000.00 - - - 397,000.00 211,961.35 Progra 4000 - Engineering 65,959.03 392,414.31 1,068,900.00 32,325.64 157,873.24 458,100.00 1,527,000.00 976,712.45 Progra 5000 - Water Production 255,938.35 1,552,339.84 4,072,000.00 - - - 4,072,000.00 2,519,660.16 Progra 5100 - Water Treatment 49,497.39 408,207.92 990,000.00 - - - 990,000.00 581,792.08 Progra 5200 - Water Quality 28,470.35 177,391.45 410,000.00 - - - 410,000.00 232,608.55 Progra 6000 - Field Maintenance Administration 29,749.11 131,117.10 198,000.00 3,409.61 18,843.55 22,000.00 220,000.00 70,039.35 Progra 6100 - Water Maintenance 147,647.70 1,011,402.20 2,021,000.00 - - - 2,021,000.00 1,009,597.80 Progra 6200 - Wastewater Maintenance - - - 733,685.29 4,666,831.36 8,593,000.00 8,593,000.00 3,926,168.64 Progra 7000 - Facilities Maintenance 51,214.43 303,252.83 585,800.00 14,972.33 73,061.27 190,200.00 776,000.00 399,685.90 Progra 7100 - Fleet Maintenance 38,856.90 223,724.40 464,400.00 5,378.93 46,356.89 51,600.00 516,000.00 245,918.71 Progra 8000 - Capital 6,592.94 841,179.67 8,007,000.00 - 109,862.50 1,584,000.00 9,591,000.00 7,828,309.15 Total Surplus (Deficit):918,079.67$ 6,842,378.03$ -$ 87,357.97$ 673,603.45$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended December 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 1,273,319.28$ 9,554,906.24$ 14,500,000.00$ -$ -$ -$ 14,500,000.00$ 4,945,093.76$ 42 Meter Charges 746,448.29 4,471,715.19 8,845,000.00 - - - 8,845,000.00 4,373,284.81 43 Penalties 41,252.37 309,034.66 445,500.00 3,123.57 22,421.60 40,000.00 485,500.00 154,043.74 44 Wastewater System Charges - - - 380,249.53 2,352,192.40 4,545,000.00 4,545,000.00 2,192,807.60 45 Wastewater Treatment Charges - - - 682,559.71 4,379,006.44 7,900,000.00 7,900,000.00 3,520,993.56 46 Other Operating Revenue 12,981.19 166,968.50 131,500.00 250.00 5,000.00 70,000.00 201,500.00 29,531.50 47 Non Operating Revenue 26,991.34 93,744.65 125,000.00 2,380.14 20,164.97 22,000.00 147,000.00 33,090.38 48 Gain or Loss on Disposition - - - - - - - - 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - Revenue Total: 2,100,992.47 14,596,369.24 24,047,000.00 1,068,562.95 6,778,785.41 12,577,000.00 36,624,000.00 15,248,845.35 Program: 1000 - Board of Directors - - - 51 Labor 4,900.00$ 29,767.50$ 73,500.00$ 2,100.00$ 12,757.50$ 31,500.00$ 105,000.00$ 62,475.00$ 56 Benefits 2,966.68 11,357.39 39,900.00 1,271.44 4,867.46 17,100.00 57,000.00 40,775.15 62 Materials and Supplies - - 700.00 - - 300.00 1,000.00 1,000.00 63 Contract Services - 238.80 7,700.00 - 102.35 3,300.00 11,000.00 10,658.85 65 Professional Development 1,195.50 5,947.93 38,500.00 30.45 1,965.79 16,500.00 55,000.00 47,086.28 Program: 1000 - Board of Directors Total: 9,062.18 47,311.62 160,300.00 3,401.89 19,693.10 68,700.00 229,000.00 161,995.28 Program: 2000 - General Administration - - - 51 Labor 34,451.99 144,347.19 340,200.00 14,738.77 61,836.61 145,800.00 486,000.00 279,816.20 53 Overtime 291.44 890.52 - 124.90 381.66 - - (1,272.18) 56 Benefits 12,338.92 96,179.35 171,500.00 3,278.01 30,924.35 73,500.00 245,000.00 117,896.30 62 Materials and Supplies 9.39 629.61 5,600.00 4.03 269.86 2,400.00 8,000.00 7,100.53 63 Contract Services 66,820.78 232,723.76 242,900.00 28,637.48 100,321.64 104,100.00 347,000.00 13,954.60 64 Utilities 178.12 1,096.59 2,100.00 76.34 469.98 900.00 3,000.00 1,433.43 65 Professional Development 1,876.23 42,465.73 78,400.00 804.10 18,199.62 33,600.00 112,000.00 51,334.65 Program: 2000 - General Administration Total: 115,966.87 518,332.75 840,700.00 47,663.63 212,403.72 360,300.00 1,201,000.00 470,263.53 Program: 2100 - Human Resources - - - - 51 Labor 16,376.93 67,692.47 147,700.00 7,018.67 29,011.11 63,300.00 211,000.00 114,296.42 52 Temporary Labor - 1,814.40 8,400.00 - 777.60 3,600.00 12,000.00 9,408.00 53 Overtime - 781.42 2,100.00 - 334.89 900.00 3,000.00 1,883.69 56 Benefits 4,513.02 41,652.03 70,000.00 1,934.08 17,357.53 30,000.00 100,000.00 40,990.44 62 Materials and Supplies 867.41 920.76 14,000.00 371.74 394.61 6,000.00 20,000.00 18,684.63 63 Contract Services 8,460.06 29,265.04 62,300.00 3,625.74 12,542.18 26,700.00 89,000.00 47,192.78 64 Utilities 34.11 220.18 700.00 14.61 94.33 300.00 1,000.00 685.49 65 Professional Development 9,290.21 14,482.41 27,300.00 3,981.52 6,206.75 11,700.00 39,000.00 18,310.84 67 Other 5,828.14 187,440.92 259,000.00 2,497.76 80,331.76 111,000.00 370,000.00 102,227.32 Program: 2100 - Human Resources Total: 45,369.88 344,269.63 591,500.00 19,444.12 147,050.76 253,500.00 845,000.00 353,679.61 Month Ended December 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 December 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 2200 - Public Affairs - - - - 51 Labor 19,520.67 69,995.86 173,500.00 19,520.63 69,111.92 173,500.00 347,000.00 207,892.22 52 Temporary Labor - - - - - - - - 53 Overtime 209.54 1,575.76 3,500.00 209.52 1,575.68 3,500.00 7,000.00 3,848.56 56 Benefits 3,725.08 37,081.38 64,500.00 3,724.24 36,605.01 64,500.00 129,000.00 55,313.61 62 Materials and Supplies 1,024.61 5,451.42 38,500.00 983.15 6,193.82 38,500.00 77,000.00 65,354.76 63 Contract Services 13,685.30 33,216.71 103,000.00 13,685.32 32,976.70 103,000.00 206,000.00 139,806.59 64 Utilities 117.82 439.91 17,500.00 117.82 439.87 17,500.00 35,000.00 34,120.22 65 Professional Development 447.08 4,321.32 13,500.00 447.07 4,096.35 13,500.00 27,000.00 18,582.33 Program: 2200 - Public Affairs Total: 38,730.10 152,082.36 414,000.00 38,687.75 150,999.35 414,000.00 828,000.00 524,918.29 Program: 2300 - Conservation - - - - 51 Labor 13,548.24 45,269.73 98,000.00 - - - 98,000.00 52,730.27 52 Temporary Labor - - - - - - - - 53 Overtime - - 8,000.00 - - - 8,000.00 8,000.00 56 Benefits 2,669.35 24,164.61 32,000.00 - - - 32,000.00 7,835.39 62 Materials and Supplies 18,180.19 74,498.51 223,000.00 - - - 223,000.00 148,501.49 63 Contract Services - 2,147.28 187,000.00 - - - 187,000.00 184,852.72 64 Utilities 72.42 362.63 21,000.00 - - - 21,000.00 20,637.37 65 Professional Development 2,011.00 2,011.00 6,000.00 - - - 6,000.00 3,989.00 Program: 2300 - Conservation Total: 36,481.20 148,453.76 575,000.00 - - - 575,000.00 426,546.24 Program: 3000 - Finance - - - - 51 Labor 52,035.02 206,162.72 474,600.00 22,245.07 88,230.16 203,400.00 678,000.00 383,607.12 52 Temporary Labor - - - - - - - - 53 Overtime 459.14 1,825.57 7,000.00 196.77 782.36 3,000.00 10,000.00 7,392.07 56 Benefits 12,981.07 113,519.83 200,900.00 5,552.03 48,565.21 86,100.00 287,000.00 124,914.96 62 Materials and Supplies - 2,478.69 7,700.00 - 1,062.31 3,300.00 11,000.00 7,459.00 63 Contract Services 2,356.61 78,701.72 116,200.00 1,060.48 24,019.02 49,800.00 166,000.00 63,279.26 64 Utilities 154.38 818.54 2,800.00 66.16 350.79 1,200.00 4,000.00 2,830.67 65 Professional Development 473.58 5,508.57 17,500.00 202.97 2,360.82 7,500.00 25,000.00 17,130.61 67 Other - 650.00 1,000.00 - - - 1,000.00 350.00 Program: 3000 - Finance Total: 68,459.80 409,665.64 827,700.00 29,323.48 165,370.67 354,300.00 1,182,000.00 606,963.69 Program: 3200 - Information Technology - - - - 51 Labor 24,084.48 100,162.40 219,100.00 10,321.92 42,926.79 93,900.00 313,000.00 169,910.81 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 5,314.55 51,752.59 90,300.00 2,277.51 22,178.88 38,700.00 129,000.00 55,068.53 62 Materials and Supplies 6,716.37 31,886.99 25,200.00 2,878.44 13,665.85 10,800.00 36,000.00 (9,552.84) 63 Contract Services 11,314.59 105,344.70 323,400.00 4,849.12 45,147.77 138,600.00 462,000.00 311,507.53 64 Utilities 224.91 1,113.02 4,200.00 96.39 477.00 1,800.00 6,000.00 4,409.98 65 Professional Development - 5,069.83 11,900.00 - 2,172.80 5,100.00 17,000.00 9,757.37 Program: 3200 - Information Technology Total: 47,654.90 295,329.53 674,100.00 20,423.38 126,569.09 288,900.00 963,000.00 541,101.38 Page 5 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended December 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 3300 - Customer Service - - - - 51 Labor 34,581.29 151,557.32 330,400.00 14,820.54 72,152.30 141,600.00 472,000.00 248,290.38 52 Temporary Labor - - 2,100.00 - - 900.00 3,000.00 3,000.00 53 Overtime 270.66 1,927.74 3,500.00 116.00 834.07 1,500.00 5,000.00 2,238.19 56 Benefits 11,657.31 108,031.53 169,400.00 4,995.79 50,147.70 72,600.00 242,000.00 83,820.77 62 Materials and Supplies 325.08 2,137.91 8,400.00 139.32 916.25 3,600.00 12,000.00 8,945.84 63 Contract Services 58,446.98 305,821.36 696,400.00 8,978.02 69,307.48 144,600.00 841,000.00 465,871.16 64 Utilities 8,024.94 39,180.14 109,900.00 3,439.26 16,791.48 47,100.00 157,000.00 101,028.38 65 Professional Development 24.76 389.29 12,500.00 - 121.28 4,500.00 17,000.00 16,489.43 67 Other - 3,432.26 - - (4.10) - - (3,428.16) Program: 3300 - Customer Service Total: 113,331.02 612,477.55 1,332,600.00 32,488.93 210,266.46 416,400.00 1,749,000.00 926,255.99 Program: 3400 - Meter Service - - - - 51 Labor 24,891.35 102,277.68 228,000.00 - - - 228,000.00 125,722.32 53 Overtime 376.86 3,093.01 20,000.00 - - - 20,000.00 16,906.99 56 Benefits 7,774.93 75,096.09 135,000.00 - - - 135,000.00 59,903.91 62 Materials and Supplies 454.27 755.36 4,000.00 - - - 4,000.00 3,244.64 63 Contract Services 368.99 3,470.79 8,000.00 - - - 8,000.00 4,529.21 64 Utilities 64.25 345.72 2,000.00 - - - 2,000.00 1,654.28 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 33,930.65 185,038.65 397,000.00 - - - 397,000.00 211,961.35 Program: 4000 - Engineering - - - - 51 Labor 44,876.07 213,898.79 498,400.00 16,239.49 82,289.29 213,600.00 712,000.00 415,811.92 52 Temporary Labor - - - - - - - - 53 Overtime 54.94 566.98 1,400.00 23.54 242.96 600.00 2,000.00 1,190.06 56 Benefits 10,994.00 137,162.77 245,000.00 4,711.51 58,783.23 105,000.00 350,000.00 154,054.00 62 Materials and Supplies 203.65 1,873.28 16,800.00 87.28 134.37 7,200.00 24,000.00 21,992.35 63 Contract Services 664.79 8,424.66 200,200.00 - 3,118.53 85,800.00 286,000.00 274,456.81 64 Utilities 9,165.58 27,740.59 86,100.00 11,263.82 12,713.02 36,900.00 123,000.00 82,546.39 65 Professional Development - 2,747.24 21,000.00 - 591.84 9,000.00 30,000.00 26,660.92 Program: 4000 - Engineering Surplus Total: 65,959.03 392,414.31 1,068,900.00 32,325.64 157,873.24 458,100.00 1,527,000.00 976,712.45 Program: 5000 - Water Production - - - - 51 Labor 68,967.62 287,326.23 670,000.00 - - - 670,000.00 382,673.77 53 Overtime 5,168.08 26,404.73 36,000.00 - - - 36,000.00 9,595.27 54 Standby 1,820.00 7,060.00 20,000.00 - - - 20,000.00 12,940.00 56 Benefits 17,344.50 165,725.25 270,000.00 - - - 270,000.00 104,274.75 61 Water Supply - 647.15 801,000.00 - - - 801,000.00 800,352.85 62 Materials and Supplies 7,133.67 108,383.41 279,000.00 - - - 279,000.00 170,616.59 63 Contract Services 14,084.75 180,237.26 367,000.00 - - - 367,000.00 186,762.74 64 Utilities 140,975.64 772,753.10 1,614,000.00 - - - 1,614,000.00 841,246.90 65 Professional Development 444.09 3,802.71 15,000.00 - - - 15,000.00 11,197.29 Program: 5000 - Water Production Total: 255,938.35 1,552,339.84 4,072,000.00 - - - 4,072,000.00 2,519,660.16 Page 6 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended December 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment - - - - 51 Labor 25,588.26 105,968.92 237,000.00 - - - 237,000.00 131,031.08 53 Overtime 2,531.21 6,663.46 10,000.00 - - - 10,000.00 3,336.54 56 Benefits 6,288.18 57,508.33 92,000.00 - - - 92,000.00 34,491.67 62 Materials and Supplies 783.83 46,281.59 165,000.00 - - - 165,000.00 118,718.41 63 Contract Services 24.86 140,415.48 286,000.00 - - - 286,000.00 145,584.52 64 Utilities 14,281.05 51,370.14 200,000.00 - - - 200,000.00 148,629.86 Program: 5100 - Water Treatment Total: 49,497.39 408,207.92 990,000.00 - - - 990,000.00 581,792.08 Program: 5200 - Water Quality - - - - 51 Labor 19,141.86 79,631.08 176,000.00 - - - 176,000.00 96,368.92 53 Overtime 327.99 5,165.64 10,000.00 - - - 10,000.00 4,834.36 56 Benefits 4,341.29 44,061.66 76,000.00 - - - 76,000.00 31,938.34 62 Materials and Supplies 2,110.29 5,921.67 18,000.00 - - - 18,000.00 12,078.33 63 Contract Services 2,404.57 41,658.93 120,000.00 - - - 120,000.00 78,341.07 64 Utilities 93.10 844.55 2,000.00 - - - 2,000.00 1,155.45 65 Professional Development 51.25 107.92 8,000.00 - - - 8,000.00 7,892.08 Program: 5200 - Water Quality Total: 28,470.35 177,391.45 410,000.00 - - - 410,000.00 232,608.55 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 18,586.86 58,342.42 102,600.00 1,266.62 9,562.90 11,400.00 114,000.00 46,094.68 52 Temporary Labor - - - - - - - - 53 Overtime 2,538.78 7,866.06 - 167.28 1,178.54 - - (9,044.60) 54 Standby 1,500.00 8,646.59 18,000.00 1,200.00 2,320.00 2,000.00 20,000.00 9,033.41 56 Benefits 4,748.48 30,366.24 40,500.00 553.64 4,663.64 4,500.00 45,000.00 9,970.12 62 Materials and Supplies 376.35 16,363.91 2,700.00 - 8.75 300.00 3,000.00 (13,372.66) 63 Contract Services - - - - - - - - 64 Utilities 1,622.44 6,618.54 18,900.00 180.27 735.39 2,100.00 21,000.00 13,646.07 65 Professional Development 376.20 2,913.34 15,300.00 41.80 374.33 1,700.00 17,000.00 13,712.33 Program: 6000 - Field Maintenance Administration Total: 29,749.11 131,117.10 198,000.00 3,409.61 18,843.55 22,000.00 220,000.00 70,039.35 Program: 6100 - Water Maintenance - - - - 51 Labor 79,160.79 338,618.97 784,000.00 - - - 784,000.00 445,381.03 53 Overtime 13,235.94 75,075.85 150,000.00 - - - 150,000.00 74,924.15 56 Benefits 24,601.30 236,520.43 417,000.00 - - - 417,000.00 180,479.57 62 Materials and Supplies 30,123.67 189,756.47 221,000.00 - - - 221,000.00 31,243.53 63 Contract Services 526.00 148,136.74 449,000.00 - - - 449,000.00 300,863.26 64 Utilities - 23,293.74 - - - - - (23,293.74) Program: 6100 - Water Maintenance Total: 147,647.70 1,011,402.20 2,021,000.00 - - - 2,021,000.00 1,009,597.80 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 31,283.00 117,013.84 280,000.00 280,000.00 162,986.16 53 Overtime - - - 7,268.00 25,594.39 3,000.00 3,000.00 (22,594.39) 56 Benefits - - - 9,536.98 82,003.95 144,000.00 144,000.00 61,996.05 62 Materials and Supplies - - - 2,631.05 20,837.13 35,000.00 35,000.00 14,162.87 Wastewater Treatment - - - 682,559.71 4,379,006.44 7,610,000.00 7,610,000.00 3,230,993.56 63 Contract Services - - - 406.55 42,375.61 521,000.00 521,000.00 478,624.39 Program: 6200 - Wastewater Maintenance Total:- - - 733,685.29 4,666,831.36 8,593,000.00 8,593,000.00 3,926,168.64 Page 7 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended December 31, 2017 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 7,636.30 35,087.78 67,900.00 3,272.70 9,481.05 29,100.00 97,000.00 52,431.17 53 Overtime 1,305.66 6,808.10 17,500.00 559.57 1,985.12 7,500.00 25,000.00 16,206.78 56 Benefits 2,167.62 20,260.81 30,800.00 928.94 6,513.77 13,200.00 44,000.00 17,225.42 62 Materials and Supplies 3,297.15 14,659.25 33,900.00 1,351.68 5,712.01 8,100.00 42,000.00 21,628.74 63 Contract Services 30,926.87 171,791.98 276,500.00 6,390.15 26,205.40 70,500.00 347,000.00 149,002.62 64 Utilities 5,880.83 54,644.91 159,200.00 2,469.29 23,163.92 61,800.00 221,000.00 143,191.17 65 Professional Development - - - - - - - - Program: 7000 - Facilities Maintenance Total: 51,214.43 303,252.83 585,800.00 14,972.33 73,061.27 190,200.00 776,000.00 399,685.90 - - - - Program: 7100 - Fleet Maintenance - - - - 51 Labor 16,266.41 67,342.17 147,600.00 1,807.34 7,482.30 16,400.00 164,000.00 89,175.53 53 Overtime 123.08 763.14 2,700.00 13.68 84.79 300.00 3,000.00 2,152.07 56 Benefits 4,869.20 43,229.42 71,100.00 540.83 4,802.67 7,900.00 79,000.00 30,967.91 62 Materials and Supplies 3,998.77 26,126.18 56,700.00 1,827.93 11,419.44 6,300.00 63,000.00 25,454.38 63 Contract Services 4,248.74 42,621.70 67,500.00 150.19 17,718.59 7,500.00 75,000.00 14,659.71 64 Utilities 9,323.70 43,587.79 113,400.00 1,035.96 4,843.10 12,600.00 126,000.00 77,569.11 65 Professional Development 27.00 54.00 5,400.00 3.00 6.00 600.00 6,000.00 5,940.00 Program: 7100 - Fleet Maintenance Total: 38,856.90 223,724.40 464,400.00 5,378.93 46,356.89 51,600.00 516,000.00 245,918.71 - - - Program: 8000 - Capital - - - 71 -Debt Service - 841,179.67 4,002,000.00 - 109,862.50 313,000.00 4,315,000.00 3,363,957.83 81 -Capital Improvement 6,573.52 38,665.31 3,525,000.00 59,375.19 621,151.94 1,140,000.00 4,665,000.00 4,005,182.75 82 -Capital Outlay 19.42 117,788.73 480,000.00 - 34,042.70 131,000.00 611,000.00 459,168.57 83 -Accounting Income Add back (6,592.94) (156,454.04) - (59,375.19) (655,194.64) - - 811,648.68 Program: 8000 - Capital Total: 6,592.94 841,179.67 8,007,000.00 - 109,862.50 1,584,000.00 9,591,000.00 8,639,957.83 Total Surplus (Deficit): 918,079.67$ 6,842,378.03$ -$ 87,357.97$ 673,603.45$ -$ -$ -$ Page 8 of 8 BOARD AGENDA STAFF REPORT Agenda Item #3.c. Meeting Date: January 24, 2018 Discussion Item To: Governing Board Members From: General Manager/CEO Subject: Approve Investment Report for Quarter Ended December 31, 2017 RECOMMENDATION: Staff recommends that the Board of Directors accept and file the attached Investment Report for the quarter ended, December 31, 2017. BACKGROUND / ANALYSIS: California Government Code §53646(b) requires the Treasurer or CFO of a local agency to submit a quarterly report on the agency’s investments to the legislative body of the agency within 30 days of the end of each quarter. Discussion The attached Investment Report shows all of the District’s cash and investments, restricted and unrestricted, as of December 31, 2017. Attachment A presents the investment securities purchased and retired during the quarter October to December 2017. Increases and decreases in highly liquid funds, such as LAIF, are explained in the narrative below. Unrestricted Investments LAIF The balance held in the Local Agency Investment Fund at the beginning of the quarter was $12,945,407. Interest earned during the previous quarter of $32,919 was posted to the account in October, and staff initiated two transfers into LAIF for $2,825,000, resulting in a balance at the end of the quarter of $15,803,326. LAIF earnings for the quarter ended December 31, 2017 were $42,596, calculated at an apportionment rate of 1.20%; up from 1.07% which had been in effect for the previous quarter. The earnings were posted to the District’s account on January 12, 2018. Citizen’s Business Bank (CBB) Wealth Management The total (book) value of the assets held with CBB increased $16,281 to $5,628,760 during the quarter ended December 31, 2017. The balance in this account is held both in a money market account ($233,777) and in a $5,394,983 portfolio of Treasury and federal agency securities shown on Attachment A. Net interest payments received on securities in the District’s portfolio were $22,348 and funds held in money market accounts earned $553. Earnings were reduced by a $3,327 amortization charge against discounts taken on the acquisition of certain bonds. Investment manager fees paid during the quarter were $2,074. There were no District transfers to or from this investment account during the quarter. The following schedule summarizes the activity for Unrestricted Investments during the Quarter ended December 31, 2017: Restricted Investments Trust accounts with Union Bank are used to safeguard funds which are restricted by bond covenants. The accounts remaining open as of December 31, 2017, are used to receive District deposits, from which the Trustee (Union Bank) pays District bondholders. Semiannual bond payment dates are April 1st and October 1st. Summary Schedule of Union Bank Trustee Accounts The following schedule summarizes activity in the Union Bank accounts for the Quarter ended December 31, 2017: AGENCY GOALS AND OBJECTIVES Goal and Objectives II - Maintain a Commitment to Sustainability, Transparency, and Accountability (A) - Practice transparent & accountable fiscal management REVIEW BY OTHERS: This agenda item has been reviewed by the Finance Department. Recommended by: John Mura General Manager/CEO Respectfully submitted: Brian Tompkins Chief Financial Officer FISCAL IMPACT There is no fiscal impact associated with this agenda item. ATTACHMENTS: Description Type Investment Report for the Quarter Ended Dec 31 2017 Backup Material Attachment A - CBB Investment Activity Report for the Quarter Ended Dec 31 2017 Backup Material EAST VALLEY WATER DISTRICT Investment Activity Quarter Ended December 31, 2017 Market Purch Units / Maturity Amort Cost Adjusted Cost Matured / Adjusted Cost Value Date Issuer CUSIP Yield Face Value Date 10/1/2017 Adjustment 10/1/2017 Purchases Called 12/31/2017 12/31/2017 01/27/16 Federal Home Loan Bank 3130A6XY8 2.000% 100,000 01/27/21 100,000.00 100,000.00 100,000.00 99,442.00 10/12/16 Federal Home Loan Bank 3130A9GS4 1.700% 100,000 10/12/17 100,000.00 100,000.00 100,000.00 97,717.00 10/29/15 Federal Home Loan 3130A6NA1 1.400% 100,000 10/29/19 100,000.00 100,000.00 100,000.00 98,938.00 12/09/16 Federal Home Loan 313371U79 3.125% 200,000 12/11/20 210,862.00 (2,653.25) 208,208.75 208,208.75 205,878.00 08/03/16 Federal Home Loan 3130A8WW9 1.300% 100,000 05/01/20 100,000.00 100,000.00 100,000.00 98,227.00 05/31/17 US Treasury Note 912828XR6 1.750% 300,000 05/31/22 299,765.63 299,765.63 299,765.63 294,774.00 03/15/16 Fannie Mae 3136G3CK9 1.520% 300,000 06/15/20 299,745.00 299,745.00 299,745.00 293,118.00 07/28/16 Fannie Mae 3136G3J30 1.600% 100,000 07/28/21 100,000.00 100,000.00 100,000.00 97,758.00 08/04/16 Fannie Mae 3136G3XV2 1.100% 100,000 07/27/17 99,750.00 99,750.00 99,750.00 97,719.00 08/24/16 Fannie Mae 3135G0N66 1.400% 100,000 08/24/20 99,981.00 99,981.00 99,981.00 98,316.00 08/25/16 Fannie Mae 3136G3Y33 1.400% 300,000 08/25/21 300,000.00 300,000.00 300,000.00 291,780.00 10/27/15 Freddie Mac 3134G3F88 1.500% 100,000 08/28/19 100,881.00 100,881.00 100,881.00 99,273.00 11/17/15 Freddie Mac 3134G76G1 1.050% 300,000 05/17/18 300,000.00 300,000.00 300,000.00 299,451.00 07/26/16 Freddie Mac 3134G9J40 1.000% 200,000 04/26/19 200,000.00 200,000.00 200,000.00 197,488.00 08/25/16 Freddie Mac 3134G95L7 1.600% 200,000 08/25/21 200,000.00 200,000.00 200,000.00 195,440.00 09/20/16 Freddie Mac 3134GALQ5 1.300% 100,000 09/20/19 100,000.00 100,000.00 100,000.00 98,720.00 09/30/16 Freddie Mac 3134GAHK3 1.600% 200,000 09/30/21 199,800.00 199,800.00 199,800.00 194,374.00 07/27/17 Freddie Mac 3134GBZS4 2.150% 300,000 04/27/22 300,000.00 300,000.00 300,000.00 295,581.00 08/27/14 Tenn Valley Authority 880591EQ1 1.750% 272,000 10/15/18 272,877.13 (2,077.50) 270,799.63 270,799.63 272,035.36 12/09/16 Tenn Valley Authority 880591EL2 3.875% 111,000 02/15/21 120,107.55 (2,276.00) 117,831.55 117,831.55 177,069.48 12/02/13 US Treasury Note 912828UE8 0.750% 500,000 12/31/17 493,632.81 5,571.30 499,204.11 499,204.11 500,000.00 11/04/16 US Treasury Note 912828T67 1.250% 500,000 10/31/21 499,765.63 499,765.63 499,765.63 484,375.00 06/14/16 Federal Home Loan Bank 3130A8EN9 1.640% 100,000 06/14/21 100,000.00 100,000.00 100,000.00 98,136.00 05/27/16 Fannie Mae 3136G15S4 1.250% 200,000 12/27/19 199,250.00 199,250.00 199,250.00 197,040.00 08/30/16 Fannie Mae 3136G35C5 1.400% 100,000 08/25/21 100,000.00 100,000.00 100,000.00 98,114.00 08/25/16 Freddie Mac 3134G93Q8 1.680% 200,000 08/25/21 200,000.00 200,000.00 200,000.00 192,920.00 09/14/17 Freddie Mac 3134GBC83 2.070% 200,000 06/14/18 200,000.00 200,000.00 200,000.00 198,440.00 5,383,000 5,396,417.75 (1,435.45) 5,394,982.30 - - 5,394,982.30 5,372,123.84 Activity (Book Value) Attachment A BOARD AGENDA STAFF REPORT Agenda Item #4. Meeting Date: January 24, 2018 Discussion Item To: Governing Board Members From: General Manager/CEO Subject: San Bernardino Basin Groundwater Council Framework Agreement RECOMMENDATION: Staff recommends that the Board of Directors authorize the General Manager/CEO and Legal Counsel to execute the final Agreement. BACKGROUND / ANALYSIS: In recent years, the San Bernardino Basin Area (SBBA) has experienced historically low groundwater levels. With this as a driver, along with the desire to ensure water supply reliability and long-term groundwater sustainability, entities that had participated in the Watermaster Collaborative began meeting in 2015 to discuss the potential formation of a Groundwater Sustainability Council, now known as the Groundwater Council (GC). Many agencies and cities approved a Memorandum of Understanding agreeing to develop this Council. Foundational to this development effort, was the understanding that the groundwater basin is a shared resource with a shared responsibility to avoid the classic tragedy of the commons, and that this responsibility was being shouldered by some, but not all groundwater producers. In the many meetings conducted over the past two years, the Groundwater Council formation group collaboratively developed the two primary products needed to formulate the GC Agreement: 1) a method to equitably allocate the costs of sustainable basin management, and 2) an organizational structure to administer the process. The parties signing the GC Agreement are committing to collaboratively develop funding to purchase adequate water to restore and maintain sustainable groundwater levels. An Equitable Allocation Model (EAM) was developed by the Basin Technical Advisory Committee (BTAC) to fairly allocate supplies and burdens to each party in order to assign costs under the GC Agreement. The GC formed by the agreement will coordinate imported water purchases. These purchases will offset the current water purchases and the Operations and Maintenance (O&M) component of the Conservation District Groundwater Charge for those that are currently subject to it. Recommended by: John Mura General Manager/CEO Respectfully submitted: Jeff Noelte Director of Engineering and Operations Partic ipation in the GC is open to groundwater producers in the SBBA. Proposed members inc lude: C ity of Co lton, C ity of Red lands, C ity of R ialto, C ity of R iverside Pub lic Utilities, C ity of San Bernard ino Munic ipal Water Department, C ity of Loma Linda, R ivers ide Highland Water Company, East Valley Water District, West Valley Water District, San Bernard ino Valley Munic ipal Water District, San Bernard ino Valley Water Conservation District, Fontana Water Company, Western Munic ipal Water District, and Yucaipa Valley Water District. Membership is secured by signing on to the governance document for the group. The GC has limited authority and each party’s board or counc il retains contro l and directs their executive’s partic ipation. The agreement is for a limited term of five-years. In add ition, the agreement as written requires an 80 percent supermajority of weighted votes for budget and critical dec is ions in order to obtain consensus. Each party’s weighted vote is determined us ing the EAM. The regional agenc ies are in the process of securing approvals from the various boards and counc ils. Should substantive changes to this agreement occur, staff will bring this item back to the Board for consideration. AGENCY GOALS AND OBJECTIVES Goal and Objectives I - Implement Effective Solutions Through Visionary Leadership (A) - Identify Opportunities to Optimize Natural Resources (C) - Strengthen Regional, State and National Partnerships Goal and Objectives IV - Promote Planning, Maintenance and Preservation of District Resources (A) - Develop Projects and Programs to Ensure Safe and Reliable Services (B) - Enhance Planning Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS: This agenda item has been reviewed by the executive team. FISCAL IMPACT The fiscal impact of this agenda item is estimated not to exceed $650,000 per year. This amount is consistent with previous years' expenses and is included in the adopted rate structure. ATTACHMENTS: ATTAC H M E NTS: Description Type Draft Groundwater Council Agreement Backup Material 159/015042-0001 10094328.32 a01/19/18 -1- SAN BERNARDINO BASIN GROUNDWATER COUNCIL FRAMEWORK AGREEMENT This SAN BERNARDINO BASIN GROUNDWATER COUNCIL FRAMEWORK AGREEMENT (“Agreement”) is entered into and effective this ___ day of ____________, 2018 by and among the City of Colton (“Colton”), the City of Redlands (“Redlands”), the City of Rialto (“Rialto”), the City of San Bernardino Municipal Water Department (“SBMWD”), City of Loma Linda (“Loma Linda”), East Valley Water District (“East Valley”), San Bernardino Valley Municipal Water District (“Valley District”), San Bernardino Valley Water Conservation District (“Conservation District”), Fontana Water Company (“FWC”), West Valley Water District (“WVWD”), Yucaipa Valley Water District (“Yucaipa”), Bear Valley Mutual Water Company (“BVMWC”), and Loma Linda University (“LLU”) each of which is referred to as a “Party,” for the purpose of coordinating the development and implementation of groundwater management activities that individually or cumulatively address groundwater management in the Bunker Hill Sub-basin of the Upper Santa Ana Valley Basin (“Basin”), and achieving groundwater sustainability throughout the Basin. RECITALS WHEREAS, the Parties to this Agreement all overlie, produce water from, or are otherwise interested in the management and long-term sustainability of the groundwater basin identified as the San Bernardino Basin Area; and WHEREAS, California Department of Water Resources’ (“DWR”) Bulletin 118 defines the Upper Santa Ana Valley Bunker Hill Sub-basin (No. 8-002.06), the boundaries of which, as defined therein and as may be amended in the future, constitute the limits of the Basin covered hereunder. A map depicting that Basin is attached hereto as Exhibit A. DWR Bulletin 118 presently classifies the Bunker Hill Basin as high priority. WHEREAS, surface water and groundwater supplies in large portions of the Basin are governed by a number of judicial decrees and contracts, including but not limited to the Orange County Water District v. City of Chino et al. (Orange County Superior Court, Case No. 117628, April 17, 1969) Western Municipal Water District of Riverside County v. East San Bernardino County Water District et al. (Riverside County Superior Court Case No. 78426, April 17, 1969); Big Bear Municipal Water District v. North Fork Water Company, San Bernardino Superior Court Case No. SCV 165493, and City of San Bernardino v. Fontana Water Company, San Bernardino Superior Court Case No.17030 (January 28, 1924). WHEREAS, Water Code § 10720.8(a) identifies the San Bernardino Basin Area as an adjudicated area. As such, this area is exempt from the Sustainable Groundwater Management Act (SGMA) passed by the California Legislature in September 2014, other than providing certain kinds of data to DWR per Water Code § 10720.8(f). WHEREAS, notwithstanding that the Basin is not required to comply with SGMA, the Parties to this Agreement wish to collaborate their efforts to identify their respective access to and application of imported water supplies, and to harmonize use of such supplies with available groundwater in the Basin. The goal is to ensure that the water imported into the Basin, and the 159/015042-0001 10094328.32 a01/19/18 -2- facilities used to apply both imported and native water supplies to productive beneficial use, will all be maintained and managed in a manner that will be sustainable over the long-term. The Parties recognize that the key to success in this effort will be coordination of amounts and areas of recharge in different parts of the Basin, by acting in conjunction with other groundwater management entities active in portions of the Basin. WHEREAS, the purpose of ensuring water supply reliability and long-term effectiveness and viability of recharge facilities has become even more important as a result of recently experienced low groundwater storage levels and the reduction of imported water supplies, due to environmental and other restrictions. One purpose of this Agreement is to facilitate the cooperation of the Parties to ensure a reliable and conjunctively utilized water supply of replenishment water that can prevent overdraft or other negative impacts from occurring during an extended drought, and for the foreseeable future. WHEREAS, the Parties, individually and collectively, have the goal of cost effective cooperative groundwater management that considers the interests and concerns of all of the communities and parties that rely upon the Basin for their water supply. WHEREAS, the Parties hereby enter into this Agreement to establish the San Bernardino Basin Groundwater Council (“GC”) to undertake the preliminary steps necessary to prepare for and coordinate the management of groundwater supply resources throughout the Basin, and to coordinate maintenance of conveyance and recharge facilities to expedite such management. The GC will coordinate with existing groundwater management agencies in the Basin as well as the individual Ex Oficio participants, as defined below, and will be responsible for ensuring overall coordination and sustainable management of the Basin. WHEREAS, the Parties have agreed that the preliminary steps of GC formation will include preparation of formation documents and procedures, the possible hiring of needed experts, and the development of a budget for this GC as memorialized in this Agreement. AGREEMENT NOW THEREFORE, in consideration of the matters recited and the mutual promises, covenants, and conditions set forth in this Agreement, the Parties hereby agree as follows: 1. DEFINITIONS 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 “Agreement” means this Groundwater Council Agreement. 1.1.2 “Plaintiff” means any of the following entities: City of Riverside, Riverside Highlands Water Company, Meeks and Daley Water Company, Regents of University of California, or Western Municipal Water District as named in the 1969 Judgment in Case Number 78426, Western Municipal Water District of Riverside County et al. vs. East San Bernardino County Water District et al.“ 159/015042-0001 10094328.32 a01/19/18 -3- 1.1.3 “Annual Basin Groundwater Report” shall mean the annual report prepared by the Groundwater Council, to cover topics including but not limited to the following: annual production, recharge, environmental issues, exchanges, and all other actions and topics material to groundwater conditions in the Basin. In preparing such report, the Groundwater Council may consult with, and draw from, data and information provided by the Watermaster and Conservation District and other reliable sources regarding annual groundwater conditions. The Annual Basin Groundwater Report is not intended to supplement or supplant the annual reports of the various Watermasters operating within the Basin that are filed with the Superior Court or any Watermasters’ required reporting under the Sustainable Groundwater Management Act (SGMA). 1.1.4 “Basin” shall mean the Upper Santa Ana Valley Bunker Hill Groundwater Basin, Sub-basin 8-002.06, as designated in DWR’s Bulletin No. 118, and as its boundaries may be modified from time to time through the procedures described in California Water Code § 10722.2. 1.1.5 “Groundwater Council” or “GC” or shall mean the Upper Santa Ana Valley Bunker Hill Basin Groundwater Council, the oversight body coordinating the management, replenishment, and preservation of groundwater supply and quality of the Basin. The GC shall be composed of representatives of each Party and should they decide to participate, a representative of any other groundwater management authority over any portion of the Basin, as further provided herein. The GC’s duties shall include the integration and coordination of the use of imported water supplies for replenishment of the Basin, facilitation of implementation of GC policies and initiatives through the legal authorities of its members, management of budgeting and funding for the maintenance, development, and management of regional groundwater infrastructure, and dispute resolution that may occur within or between the Parties or Ex Oficio members of the GC. 1.1.6 “BTAC” shall mean the Basin Technical Advisory Committee, as originally created under the auspices of the Upper Santa Ana River Watershed Integrated Regional Water Management Plan, as such Committee may be modified from time to allow for the additional participation of one or more Parties to this Agreement. The BTAC may be tasked to undertake specified actions in support of the GC. 1.1.7 “Effective Date” shall mean the date that a majority of the Parties approve of and enter into the Agreement. 1.1.8 “Equitable Allocation” shall mean the manner of determining the facilities’ operations and maintenance (“O&M”) costs, and supplemental water cost, for each Party based on the annual approved budget. This allocation will be performed pursuant to the formulas and procedures described in Exhibit B of this Agreement. The allocation shall determine the portion of equitable O&M cost, and the portion of equitable water cost, to be apportioned to each Party or other participant for the applicable GC budget year. These allocations shall also be used to determine the voting weight afforded to each voting member of the GC, under this Agreement and further procedural processes as may be developed by the GC. 1.1.9 “Ex Oficio participant” shall mean those entities that participate in the GC by virtue of their status as plaintiffs or successors in interest to plaintiffs in Western 159/015042-0001 10094328.32 a01/19/18 -4- Municipal Water District of Riverside County v. East San Bernardino County Water District et al. (Riverside County Superior Court Case No. 78426, April 17, 1969), but which shall not be a considered Parties to this Agreement. 1.1.10 “Cost Share” shall mean that portion of the overall annual operating costs of the GC, assigned to a Party pursuant to the Equitable Allocation, as determined in the annual budget of the GC. 2. TERM 2.1 This Agreement shall become operative on the Effective Date. If an eligible Party has not executed this Agreement by june 30, 2018, such party may join this GC Agreement only as an additional member of the GC, pursuant to Section 3.5, below. 2.2 This Agreement shall remain in effect for a period of five (5) years following the Effective Date, unless earlier terminated by the unanimous written consent of all then-active Parties, provided, however, that this Agreement shall remain in effect during the term of any contractual obligation or indebtedness of the GC that was previously approved by the GC. 2.3 Any Party shall have the ability to withdraw from this Agreement upon serving written notice of its intention to withdraw on all other Parties at least twelve (12) months before that Party’s withdrawal becomes effective. Such notice shall be served on the GC at a regularly scheduled meeting and on each of the Parties to this Agreement separately. The withdrawing Party may withdraw upon eighty percent (80%) approval of the voting members of the GC. 2.4 Any Ex Oficio participant in the GC shall have the ability to withdraw from participation in the GC upon thirty (30) days written notice to the Parties. 3. COUNCIL CREATION AND PURPOSE 3.1 Creation of the GC. There is hereby created the Upper Santa Ana Valley Bunker Hill Basin Groundwater Council. The GC shall be, to the extent permitted by law, the forum within which the Parties shall coordinate the access to and utilization of imported water supplies for application to the recharge and replenishment of the Basin, and for the maintenance, and repair of recharge and conveyance facilities for both native and imported supplies to replenish the Basin, consistent with applicable law and judicial decrees. 3.2 Purpose of the Agreement. The purpose of this Agreement, and the creation of the GC, is to provide for the funding, integration, and coordination of the management of imported water and associated groundwater replenishment facilities of the Basin. The purpose is also the facilitation of implementation of policies and initiatives through the legal authorities of one or more Parties, for the purpose of cooperatively managing certain aspects of the Basin, including but not limited to accessing and applying imported water supplies to augment and complement native water supplies, toward the goal of maintaining the long-term yield of the Basin and ensuring that overdraft or other negative impacts are prevented in the future and eliminated over time; and undertaking imported water replenishment activities that are approved by the GC and included in the annual approved budget. 159/015042-0001 10094328.32 a01/19/18 -5- 3.3 Membership of the GC. The GC shall consist of a representative from each Party. One party may serve in multiple representative roles, and this will be accounted for in the Equitable Allocation. GC Members shall be appointed in the manner set forth in Section 3.4 of this Agreement. 3.4 Appointment of Members to the GC. Each Party or other entity entitled to membership on the GC shall appoint one representative member of the GC, who shall be the senior executive management level employee of the Party, or a senior executive management-level employee of other recognized groundwater management entity. Each eligible member may determine its own process for appointing its representative member. Members of the GC shall serve throughout the term of this agreement, provided that such members may be subject to removal and replacement by the appointing Party in the event the representative is no longer in the employ of the appointing Party. 3.5 Additional Members. The GC may permit admission of additional members upon an eighty percent (80%)vote of the Equitable Allocation weighted votes among all then-existing Parties, upon such terms and conditions as the GC in its discretion may impose. Such conditions may include requiring contributions to any GC initiatives for securing imported water supplies, or maintenance and operations expenses of groundwater replenishment facilities, to assure equitable distribution of the costs of such initiatives or facilities to those benefitting from them. 3.6 Ex Oficio Participants. The GC shall include the plaintiff parties or the successors in interest to the plaintiff parties in Western Municipal Water District of Riverside County v. East San Bernardino County Water District et al. (Riverside County Superior Court Case No. 78426, April 17, 1969) as “Ex Oficio” participants, unless any Ex-Oficio participant withdraws from the GC pursuant to Section 2.4, above. Such Ex-Oficio participants shall not have the ability to vote on any matters before the GC, but shall be permitted to provide input and other support for GC efforts. Notwithstanding any other provision of this Agreement, and except as otherwise provided in other agreements, judgments or settlements, Ex Oficio participants shall not be liable for any costs or fees associated with the GC or its activities related to importing groundwater into the Basin and shall not be considered “members” of the GC as that term is used in this Agreement. Ex Oficio participants may jointly execute a separate agreement with the Conservation District that will provide for the annual payment of no more than 27.95% of costs associated with the recharge of native waters. 4. COUNCIL MEETINGS AND ACTIONS 4.1 Initial Meeting. The initial meeting of the GC shall be held at a location overlying the Basin within forty-five days (45) days of the Effective Date of this Agreement. At the initial meeting the GC shall select a President to chair its meetings, a Vice President to serve if the President is unavailable, a Secretary to record GC proceedings and actions, and any other officers it deems appropriate to the successful and efficient conduct of its business. 4.2 Regular Meeting Schedule and Rules of Proceeding. The GC shall establish a regular meeting time and place at its initial meeting. The GC may vote to change the regular meeting time and place, provided that the new location remains at a place overlying the Basin. 159/015042-0001 10094328.32 a01/19/18 -6- The GC may adopt, promulgate, repeal, or revise further rules of debate, presentation of motions, voting and proxies, process, or proceedings, as it may deem appropriate. 4.3 Quorum. A quorum of the GC shall consist of majority of the total Equitable Allocation weighted votes among all voting members. In the absence of a quorum, no business may be transacted beyond the adjournment of a meeting by the remaining members. For efficiency, business may be discussed and action recommended for the consent calendar ratification at the next regular meeting. A member shall be deemed present for the determination of a quorum if the member is present at the meeting in person, or if they participate in the meeting telephonically upon such rules and procedures as the GC may promulgate. 4.4 GC Voting Rights. Each voting member of the GC shall have its Equitable Allocation weighted vote, as such may be revised from time to time either (a) pursuant to pre- negotiated mechanisms for the adjustment of the Equitable Allocation, due to fluctuations in the groundwater production or other criteria on which the initial Equitable Allocation is based, or (b) by an eighty percent (80%) vote of the total Equitable Allocation voting weight held by all voting members. Exhibit B indicates the voting rights of each party, and shall be modified periodically as specified in the procedures included in Exhibit B. 4.4.1 Fiscal items, including but not limited to, approval of the annual budget of the GC and any expenditures, shall require an affirmative vote by a supermajority constituting eighty percent (80%) of all Equitable Allocation voting weight. To the extent the GC may form groups which contain less than all members for projects where not all members are participants, such committees will have an additional committee agreement identifying the requirements of committee members, and voting requirements attending fiscal obligations of such committees. 4.4.2 Any change in annual contributions necessary to support the work of the GC shall require an affirmative vote by a supermajority constituting eighty percent (80%) of all of all Equitable Allocation voting weight. 4.5 Minutes. The GC shall cause minutes to be kept of all meetings of the GC and any appointed Standing Committees. The GC shall further cause a copy of draft minutes to be forwarded to each member of the GC and to each Party and Ex Oficio member, which may be done electronically, or by way of posting to a commonly available website or digital portal. 159/015042-0001 10094328.32 a01/19/18 -7- 4.6 Annual Budgeting and Expenditure Approval. 4.6.1 The fiscal year of the GC shall be July 1 through June 30. The GC shall develop, circulate, and approve an annual budget for the funding of bringing imported water supply to the Basin, and for the maintenance and repair of groundwater recharge or water conveyance facilities serving replenishment of the Basin. The Budget shall be prepared by a Budget Committee, which shall consist of three (3) member Parties of the GC appointed by a qualifying vote of at least 80% of the weighted Equitable Allocation, no later than January 31 of the fiscal year prior to the one for which the budget is to operate. The Budget Committee shall coordinate with BTAC and Valley District as the State Water Project Contractor, to determine the likely allocation of available State Water Project imported water supplies, and other available non- native sources of imported water, the likely unit cost of such imported water, and the recharge needs of the Basin, in terms of quantities of water, locations where Basin conditions would most benefit from imported recharge, condition and availability of facilities to accomplish such recharge, and cost. From these sources, the Budget Committee shall prepare a budget that recommends all of the following: (a) the amount of imported water supplies proposed to be bought or otherwise acquired by GC members in the coming year; (b) the recommended application or distribution of such imported water supplies to various parts of the Basin; (c) the estimated cost of all ongoing maintenance, repair, and operation costs for then-existing groundwater recharge and conveyance facilities serving to replenish the Basin; (d) any administrative costs of the GC; and (e) proposed allocation of all expenditures in the Budget among GC members as their portion of the Cost Share based upon the Equitable Allocation Model. 4.6.2 No later than March 1 prior to the beginning of the year for which the budget is to operate, the Budget Committee shall present and circulate to all GC members the proposed Budget, for review and analysis. The circulated budget shall include the underlying presumptions and worksheets upon which it is based. The Budget Committee, or its designee, shall make itself reasonably available to respond promptly to any inquiries or information requests regarding the proposed budget. 4.6.3 No later than sixty (60) days after presentation of the budget by the Budget Committee, the GC shall meet to deliberate and pass upon the budget. The GC may accept, reject, or modify in any way the budget as proposed by the Budget Committee. Adoption of the budget shall require an eighty percent (80%) vote of the weighted Equitable Allocation, provided, however, that if a segregable portion or portions of the budget can be identified which prevent the overall budget from obtaining an eighty percent (80%) approval vote, the GC shall pass those portions of the budget upon which an eighty percent (80%) majority can be achieved, and shall refer those portions upon which approval cannot be obtained back to the Budget Committee for further recommendation on how such portions might be eliminated, reduced in scope or cost, or 159/015042-0001 10094328.32 a01/19/18 -8- otherwise modified, and represented to the GC for eighty percent (80%) approval. No portion of the GC budget imposing any expenditures on any Party shall be approved or adopted on less than an eighty percent (80%) vote of the Equitable Allocation weighted voting, but the inability to secure an eighty percent (80%) vote on segregable portions of the budget shall not prevent the GC from implementing, and proceeding with, those portions of the budget which secured the required eighty percent (80%) approval. 4.7 The Valley District shall perform the accounting and revenue collection functions of the GC in tracking and securing the funding from the GC members pursuant to the approved annual budget, and consistent with the approved cost allocations among the GC members therein, for all imported water supplies. The Conservation District shall perform the accounting and revenue collection functions of the GC in tracking and securing the funding from the GC members pursuant to the approved annual budget, and consistent with the approved cost allocations among the GC members therein, for all facilities costs. The Conservation District shall credit each Party or Ex Oficio participant otherwise subject to the Conservation District’s groundwater charge, in the amounts such Party contributes to the GC budget for facilities costs that would be encompassed in that groundwater charge, in order to prevent double collection of such costs with the Conservation District’s groundwater charges. Groundwater charges payable by the Ex Oficio Participants may be suspended as part of the separate funding agreement outlined in Section 4.8. In the event of any delinquency, either Valley District or the Conservation District may request the GC to appoint it, or any other GC member or group of members, to represent the GC in securing collection of unpaid and owing amounts from any delinquent member or members. The reasonably incurred costs of such collection efforts may be reimbursed to the agent the GC authorizes to go forward with them, and may be added as an administrative cost to other members, or as a credit against future amounts owing to the GC from such authorized agent. 4.8 Ex Oficio participants will not be subject to the Conservation District’s groundwater charges as long as a separate funding agreement as outlined in this Section 4.8 is in effect. Ex Oficio participants may jointly negotiate and execute a separate agreement with the Conservation District and/or Valley District that will provide for the annual payment of up to 27.95% of costs associated with the recharge of native waters. As of the Effective Date of this Agreement, Ex Oficio participants understood the estimated annual costs associated with water recharge, both native and imported, to be $800,000 for Conservation District activities and $200,000 for activities that may occur in recharge basins outside of the Conservation District’s control. Ex Oficio participants, via the separate funding agreement, may agree to collectively pay no more than 27.95% of the cost for recharge of native waters. In any such agreement, in the event that imported water is recharged and the costs for such activity are comingled with the cost for recharge of native water, the Conservation District and/or Valley District will pro-rate the costs associated with recharge to separate the costs for native and imported water recharge. Ex Oficio participants are not intended to be charged for the costs of recharge of imported water or associated capital, the operations and maintenance for imported supplies, or any other costs not expressly agreed to in the separate funding agreement. 4.9 No later than six (6) months into the budget year for which any budget is adopted by the GC, the Budget Committee shall prepare a year-in-process budget review, to assess the validity and accuracy of the presumptions upon which the budget was based, identify any budget savings or additional expenditures, assess any additional opportunities for groundwater 159/015042-0001 10094328.32 a01/19/18 -9- replenishment that may have come available since the passing of the budget, and otherwise assess and recommend to the GC any potential amendment to the existing year budget, or suggestions for the following year’s budget, as changing conditions may warrant. (This section may not be needed based upon finalization of the Equitable Allocation formula.) 5. COUNCIL POWERS AND DUTIES 5.1 The GC shall exercise the following powers: 5.1.1 To adopt rules, regulations, policies, bylaws and procedures governing the operation of the GC. 5.1.2 To produce an Annual Basin Groundwater Report, using as may be appropriate data regarding groundwater conditions available from the Watermaster, the Conservation District, or other sources. 5.1.3 To monitor groundwater production and extractions in coordination with BTAC and pertinent local groundwater management agencies. 5.1.4 To make, after consultation with BTAC, annual recommendations for the amount of additional artificial recharge for the Basin from imported sources as a complement to native sources, and to plan for the development and application of such additional sources of recharge. 5.1.5 To establish as-needed Ad Hoc and Standing advisory committees for the purpose of making recommendations to the GC. Committees shall exist for the term specified in the action creating the committee, and the GC may dissolve a committee at any time through an eighty percent (80%) majority vote of Equitable Allocation voting weight. 5.1.6 To contract for the services of engineers, attorneys, planners, financial consultants, and separate and apart therefrom, to appoint agents and representatives to employ such other staff persons as necessary. The BTAC will provide technical support for the GC, upon such terms as the GC and BTAC shall agree in writing. Ex Oficio members shall not be responsible for BTAC costs. 5.2 In addition to the above-referenced powers, the GC may, by an eighty percent (80%) vote of the Equitable Allocation, decide to activate and exercise any or all of the following additional powers: 5.2.1 To collect and monitor all data related and beneficial to the development, adoption and implementation of appropriate groundwater level management for the Basin. 5.2.2 To collect charges from GC members as authorized in the approved budget. 5.2.3 To cooperate, act in conjunction, and contract with the United States, the State of California, or any agency thereof, counties, municipalities, public and private 159/015042-0001 10094328.32 a01/19/18 -10- corporations of any kind (including without limitation, investor-owned utilities), and individuals, or any of them, for any and all purposes necessary or convenient for the purposes of this Agreement. 5.2.4 To accumulate operating and reserve funds and invest the same as allowed by law for the purposes of the GC. 5.2.5 As may be permitted by law, to apply for and accept grants, contributions, donations and loans, including under any federal, state or local programs for assistance in developing or implementing any of its projects or programs in connection with any project untaken in the GC’s name. 5.2.6 To acquire lease, purchase, construct, hold, manage, maintain, operate and dispose of any buildings, property, water rights, works or improvements within and without the respective boundaries of the Parties necessary to accomplish the purposes described herein, or to assist any Party in doing so. 5.2.7 To implement the Cost Share in a manner that qualifies as a pass through charge under the Constitutional requirements of Proposition 218 and similar revenue- raising requirements. 5.2.8 To exercise any power necessary or incidental to the foregoing powers in the manner and according to the procedures provided for under the law applicable to the Parties to this Agreement. 5.2.9 In addition to the above, and to the extent not directly represented on the GC, the GC shall coordinate its efforts with the agencies that are charged with implementing all applicable judicial decrees governing the Basin. 6. FUNDING GC ACTIVITIES Funding for GC activities shall be provided pursuant to an expense sharing mechanism described in more detail in Exhibit B hereto. This mechanism is based in part on a regional sharing of Operation and Maintenance costs for San Bernardino Basin Area recharge activities, as those Operation and Maintenance costs shall be determined by the GC in its annual budgeting, in conjunction with BTAC. All Parties shall share in the Operation and Maintenance cost components. Ex Oficio participants shall not share in any costs which are attributable to bringing imported water to the Basin nor its recharge, but all other Parties shall participate in such costs, pursuant to the Equitable Allocation attached as Exhibit B hereto. Ex Officio participants intend to, through separate agreement(s) with the Conservation District and/or Valley District, cooperate in the payment of up to a maximum of 27.95% of costs associated with the recharge of water that results from natural precipitation and run-off in the basin (native water). Each Party shall be contractually responsible hereunder for the annual payment of fees for their assigned portion of the budgeted expenses of the GC, based on that Party’s allocation, as determined by the aforementioned allocation formula and the approved GC budget. 159/015042-0001 10094328.32 a01/19/18 -11- 7. DISPUTE RESOLUTION The Parties recognize that there may be disputes regarding the obligations of the Parties or the interpretation of this Agreement. The Parties agree that they may attempt to resolve disputes as follows: 7.1 Statement Describing Alleged Violation of Agreement. A Party or Parties alleging a violation of this Agreement (the “Initiating Party(ies)”) shall provide a written statement describing all facts that it believes constitute a violation of this Agreement to the Party(ies) alleged to have violated the terms of this Agreement (the “Responding Party(ies)”). 7.2 Response to Statement of Alleged Violation. The Responding Party(ies) shall have sixty (60) days from the date of the written statement to prepare a written response to the allegation of a violation of this Agreement and serve that response on the Initiating Party(ies) or to cure the alleged violation to the reasonable satisfaction of the Initiating Party(ies). The Initiating Party(ies) and the Responding Party(ies) shall then meet within thirty (30) days of the date of the response to attempt to resolve the dispute amicably. 7.3 Mediation of Dispute. If the Initiating Party(ies) and the Responding Party(ies) cannot resolve the dispute within ninety (90) days of the date of the written response, they shall engage a mediator, experienced in water-related disputes, to attempt to resolve the dispute. Each Party shall ensure that it is represented at the mediation by a Director or Trustee or other representative with authority to settle. These representatives of the Initiating Party(ies) and the Responding Party(ies) may consult with staff and/or technical consultants during the mediation and such staff and/or technical consultants may be present during the mediation. The costs of the mediator shall be divided evenly between the Initiating Party(ies) and the Responding Party(ies). The decision of the mediator shall be non-binding. 7.4 Reservation of Rights. Subject to the above requirements, in the event that mediation fails, each Party retains and may exercise all legal and equitable rights and remedies it may have to enforce the terms of this Agreement; provided, that prior to commencing litigation, a Party shall provide at least five (5) calendar days’ written notice of its intent to sue to all Parties. 8. RELATIONSHIP TO WATER RIGHTS AND PRIOR AGREEMENTS 8.1 Water Rights and Existing Agreements. Nothing in this Agreement is intended to modify the water rights of the Parties or the Ex Oficio participants, whether existing under a judgment, proceedings of the State Water Resources Control Board, or the common law. Nothing in this Agreement is intended to modify any existing agreements between and among the Parties, unless expressly stated herein. 8.2 Agreements Among Water Users. Nothing in this Agreement is intended to modify the rights of the signatories of this Agreement among themselves. 8.3 Judgments. Nothing in this Agreement is intended to modify the rights of the Parties under the terms of the judgments in Orange County Water District v. City of Chino et al. (Orange County Superior Court, Case No. 117628, April 17, 1969) and Western Municipal Water District of Riverside County v. East San Bernardino County Water District et al. (Riverside 159/015042-0001 10094328.32 a01/19/18 -12- County Superior Court Case No. 78426, April 17, 1969); Chino Basin Water District v. City of Chino, San Bernardino Superior Court Case No. 164327; Big Bear Municipal Water District v. North Fork Water Company, San Bernardino Superior Court Case No. SCV 165493; or City of San Bernardino v. Fontana Water Company, San Bernardino Superior Court Case No.17030 (January 28, 1924). It is the intention of the Parties in forming the GC to apply, administer, and conform to the requirements and provisions of each of these judgments. In the event of any conflict between the actions of the GC, and the requirements and provisions of such judgments, the latter shall control. 8.4 No Admissions. Nothing in this Agreement shall be construed as an admission by any Party regarding any subject matter of this Agreement, including but not limited to the water rights or priorities of same of the Parties. 8.5 Preservation of Rights. The Parties agree that this Agreement, to the extent allowed by law, preserves all rights of the Parties as they may exist as of the Effective Date of this Agreement. Nothing in this Agreement is to be construed as altering the priorities or entitlements of water right holders among themselves to water from the Santa Ana River or the Basin. 9. MISCELLANEOUS 9.1 Authority. Each signatory of this Agreement represents that s/he is authorized to execute this Agreement on behalf of the Party for which s/he signs. Each Party represents that it has legal authority to enter into this Agreement and to perform all obligations under this Agreement, and that by doing so, such Party is not in breach or violation of any other agreement or contract. 9.2 Amendment. Except as to fluctuations in the Equitable Allocation as otherwise provided for herein, this Agreement may be amended or modified only by a written instrument approved by an eighty (80)%) vote of the Equitable Allocation 9.3 Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, except for its conflicts of law rules. Any suit, action, or proceeding brought under the scope of this Agreement shall be brought and maintained to the extent allowed by law in the County of San Bernardino, California. 9.4 Headings. The paragraph headings used in this Agreement are intended for convenience only and shall not be used in interpreting this Agreement or in determining any of the rights or obligations of the Parties to this Agreement. 9.5 Construction and Interpretation. This Agreement has been arrived at through negotiations, and each Party has had a full and fair opportunity to revise the terms of this Agreement. As a result, the normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not apply in the construction or interpretation of this Agreement. 9.6 Entire Agreement. This Agreement constitutes the entire agreement of the Parties with respect to its subject matter, and supersedes any prior oral or written agreement, understanding, or representation relating to the subject matter of this Agreement. 159/015042-0001 10094328.32 a01/19/18 -13- 9.7 Partial Invalidity. If, after the date of execution of this Agreement, any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws or adjudicatory decisions effective during the term of this Agreement, such provision shall be fully severable. However, in lieu thereof; there shall be added a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 9.8 Successors and Assigns. To the extent authorized by law, this Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective Parties to this Agreement. No Party may assign its interests in or obligations under this Agreement without the written consent of the other Parties, which consent shall not be unreasonably withheld or delayed. 9.9 Waivers. Waiver of any breach or default hereunder shall not constitute a continuing waiver or a waiver of any subsequent breach either of the same or of another provision of this Agreement, and forbearance to enforce one or more of the remedies provided in this Agreement shall not be deemed to be a waiver of that remedy. 9.10 Attorneys’ Fees and Costs. The prevailing Party in any litigation or other action to enforce or interpret this Agreement shall be entitled to reasonable attorneys’ fees, expert witnesses’ fees, costs of suit, and other and necessary disbursements, in addition to any other relief deemed appropriate by a court of competent jurisdiction. 9.11 Necessary Actions. Each Party agrees to execute and deliver additional documents and instruments and to take any additional actions as may be reasonably required to carry out the purposes of this Agreement. 9.12 Compliance with Law. In performing their respective obligations under this Agreement, the Parties shall comply with and conform to all applicable laws, rules, regulations and ordinances. 9.13 Third Party Beneficiaries. This Agreement shall not create any right or interest in any non-Party or in any member of the public as a third party beneficiary. 9.14 Notices. All notices, requests, demands or other communications required or permitted under this Agreement shall be in writing unless provided otherwise in this Agreement and shall be deemed to have been duly given and received on: (i) the date of service if served personally or served by facsimile transmission on the Party by delivery to the person(s) at the address(es) designated below, which designation may be changed from time to time by a Party in writing; (ii) on the first day after mailing, if mailed by Federal Express, U.S. Express Mail, or other similar overnight courier service, postage prepaid, and addressed as provided below, or (iii) on the third day after mailing if mailed to the Party to whom notice is to be given by first class mail, registered or certified, postage prepaid, addressed as follows: 159/015042-0001 10094328.32 a01/19/18 -14- To CITY OF COLTON: CITY OF COLTON Attn: David Kolk, Utilities Director 650 N. La Cadena Drive Colton, CA 92324 To CITY OF REDLANDS: CITY OF REDLANDS Attn: Paul Toor, Public Works Director 35 Cajon Street Redlands, CA 92373 To CITY OF RIALTO: CITY OF RIALTO Attn: Thomas J. Crowley, Utilities Manager 150 S. Palm Avenue Rialto, CA 92376 To CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT: CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT Attn: Miguel Guerrero, Director, Water Utility 397 Chandler Place San Bernardino, CA 92408 To CITY OF LOMA LINDA: CITY OF LOMA LINDA Attn: Bill Walker, Director of Utilities 25541 Barton Road Loma Linda, CA 92354 To EAST VALLEY WATER DISTRICT: EAST VALLEY WATER DISTRICT Attn: John J. Mura, General Manager 3111 Greenspot Road Highland, CA 92346 To SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT: SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT Attn: Doug Headrick, General Manager 380 E. Vanderbilt Way San Bernardino, CA 92408 To SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT: SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT Attn: Daniel Cozad, General Manager 1630 West Redlands Blvd., Suite A Redlands, California 92373 To FONTANA WATER COMPANY: FONTANA WATER COMPANY Attn: Chris Fealy, Water Resources Manager Post Office Box 309 Fontana, CA 92335 159/015042-0001 10094328.32 a01/19/18 -15- To WEST VALLEY WATER DISTRICT: WEST VALLEY WATER DISTRICT Attn: Greg Gage, Assistant General Manager 855 W Baseline Road Rialto, CA 92376 To YUCAIPA VALLEY WATER DISTRICT: YUCAIPA VALLEY WATER DISTRICT Attn: Joe Zoba, General Manager 12770 2nd Street Yucaipa, CA 92399 To BEAR VALLEY MUTUAL WATER COMPANY: BEAR VALLEY MUTUAL WATER COMPANY Attn: Bob Martin 101 E. Olive Avenue Redlands, CA 92373 To LOMA LINDA UNIVERSITY: LOMA LINDA UNIVERSITY Central Utilities Plant Attn: Bill Walker, Director of Utilities 11100 Anderson Street Loma Linda, CA 92350 9.15 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. DATED: ____________________, 2018 CITY OF COLTON, a California general law city and municipal corporation By:__________________________________ William R. Smith, City Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -16- DATED: ____________________, 2018 CITY OF REDLANDS, a California general law city and municipal corporation By:__________________________________ N. Enrique Martinez, City Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -17- DATED: ____________________, 2018 CITY OF RIALTO a California general law city and municipal corporation By:__________________________________ Robb Steel, Interim City Administrator and Development Services Director [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -18- DATED: ____________________, 2018 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT By:__________________________________ Andrea M. Miller, City Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -19- ATED: ____________________, 2018 CITY OF LOMA LINDA a California charter city and municipal corporation By:__________________________________ T. Jarb Thaipejr, City Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -20- DATED: ____________________, 2018 EAST VALLEY WATER DISTRICT By:__________________________________ John Mura, General Manager/CEO [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -21- DATED: ____________________, 2018 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT By:__________________________________ Douglas Headrick, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -22- DATED: ____________________, 2018 SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT By:__________________________________ Daniel B. Cozad, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -23- DATED: ____________________, 2018 FONTANA WATER COMPANY By:__________________________________ Josh Swift, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -24- DATED: ____________________, 2018 WEST VALLEY WATER DISTRICT By:__________________________________ Robert Christman, Interim General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -25- DATED: ____________________, 2018 YUCAIPA VALLEY WATER DISTRICT By:__________________________________ Joseph Zoba, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -26- DATED: ____________________, 2018 BEAR VALLEY MUTUAL WATER COMPANY, a California mutual water company By:__________________________________ Robert Martin, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a01/19/18 -27- LOMA LINDA UNIVERSITY By:__________________________________ Richard H. Hart, MD, DrPH, President [End of Signatures Pages] 159/015042-0001 10094328.32 a01/19/18 EXHIBIT _A Map of Upper Santa Ana Bunker Hill Basin (Taken from DWR Bulleting No. 118) 159/015042-0001 10094328.32 a01/19/18 Exhibit B EQUITABLE ALLOCATION METHOD The Parties to this agreement have agreed to equitably share costs and establish the voting weight for each Party using the following method, which shall be performed annually after the annual submittal of the Western-San Bernardino Watermaster Report to the Court. The details for this method are included in a Microsoft Excel Spreadsheet titled BTAC Equitable Allocation Method SBBA 1.18.18.xlsx, as amended by the GC from time to time, which is incorporated here by reference. Copies of that file have been made available to all parties. I. Calculation of the Equitable Operations and Maintenance (O&M) Cost. The equitable distribution of the O&M Costs amongst the Parties shall be calculated from the approved budget, as follows: Equitable O&M Cost Plaintiffs = 0.2795 x O&M Costs Equitable O&M Cost Non Plaintiffs = Proportion of Total Pumping x 0.7205 x O&M Costs where, O&M Costs = annual budgeted or actual costs to operate and maintain the facilities needed to recharge supplemental water into the SBBA that have been reviewed and approved by the Council Proportion of Total Pumping (%) = Party’s total SBBA pumping Non-Plaintiff Total SBBA Pumping where, Party’s total SBBA pumping (acre-feet) = the Party’s total amount pumped from the SBBA for the previous complete calendar year, as published by the Western-San Bernardino Watermaster, and adjusted for any water pumped by one Party and received by another Party, to coordinate with non-parties still paying the groundwater charge, Parties may be requested to report production to the SBVWCD, as needed. Non-Plaintiff Total SBBA Pumping (acre-feet) = total Non-Plaintiff pumping of the parties for the previous complete calendar year, as recorded by the Western-San Bernardino Watermaster. II. Calculation of the Equitable Water Cost. The equitable distribution of the water cost for sustainability will only be paid by the Non- Plaintiff parties and shall be calculated, as follows: Equitable Water Cost = Party Gap + Sustainability where, 159/015042-0001 10094328.32 a01/19/18 Party Gap ($) = �𝐺𝐺𝐺𝐺𝐺𝐺1959−63+𝐺𝐺𝐺𝐺𝐺𝐺𝐿𝐿𝐺𝐺𝐿𝐿𝐿𝐿 5 𝑌𝑌𝑌𝑌𝐺𝐺𝑌𝑌𝐿𝐿�2 ∗𝑆𝑆𝑆𝑆𝑆𝑆 𝐶𝐶𝐶𝐶𝐿𝐿𝐿𝐿 where, �𝐺𝐺𝐺𝐺𝐺𝐺1959−63+𝐺𝐺𝐺𝐺𝐺𝐺𝐿𝐿𝐺𝐺𝐿𝐿𝐿𝐿 5 𝑌𝑌𝑌𝑌𝐺𝐺𝑌𝑌𝐿𝐿�2 <0, else Party Gap ($) = $0 Gap 1959-63 (acre-feet) = GWSY1959-63 + SW1959-63 - Demand Previous Year Gap Last 5 Years (acre-feet) = GWSYLast 5 Years + SWLast 5 Years - Demand Previous Year + Net New Recycled Previous Year where, GWSY1959-63 = local groundwater supplies available to a Party as a portion of their base period safe yield. The base period safe yield for the SBBA has been proportioned amongst the Parties as described below: where, GWSY1959-63 = Safe Yield1959-63 – SW1959-63 SW1959-63 = average surface water usage by a party from 1953-1963 Demand Previous Year = total water demand calculated for the Party for the previous year using published data, as approved by the Council. GWSYLast 5 Years = local groundwater supplies available to a Party as a portion of their current Safe Yield. The safe yield of the last 5 years for the SBBA will be proportioned amongst the Parties as described below. where, GWSYLast 5 Years = Safe YieldLast 5 Years – SWLast 5 Years SWLast 5 Years = average surface water usage by a party within the last 5 years. Net New Recycled Previous Year = The amount of recycled water from the previous year minus Recycled 1959-63 where, Recycled1959-63 is the amount of recycled water used in the base period Sustainability ($) = Water Use x (Total Equitable Water Cost – Total Gap ($)) where, Water Use (%) = Party Water Use (acre-feet) Total Water Use (acre-feet) 159/015042-0001 10094328.32 a01/19/18 where, Party Water Use (acre-feet) = the Party’s total average water use over the past, complete, 5 year period (surface water, groundwater, recycled water, imported water, etc.) Total Water Use (acre-feet) = Summation of each individual Party Water Use Total Equitable Water Cost = Sustainable Amount x SWP Cost where, Sustainable Amount (acre-feet) = The amount of SWP water, in acre-feet, needed to achieve long-term sustainability which shall be obtained from the latest edition of the San Bernardino Valley Regional Urban Water Management Plan, Average Scenario for the latest planning year plus the published reliability factor, currently 10% SWP cost ($/acre-foot) = The cost for recharged SWP water as published in the San Bernardino Valley Municipal Water District Resolution 888, as amended Total Gap ($) = Summation of each individual Party Gap ($) for all Parties Proportioning Safe Yield. The Western-San Bernardino Judgment does not apportion the safe yield by water agency. The Parties agree that, for purposes of this agreement, the Safe Yield will be apportioned, as follows: Safe Yield1959-63: The safe yield during the Base Period was proportioned as follows: Agency Safe Yield1959-63 Bear Valley Mutual Water Company 12,996 City of Colton 3,150 City of Loma Linda 1,855 City of Redlands 26,598 City of Rialto 1,890 City of San Bernardino 19,425 East Valley Water District 13,599 Fontana Union Water Company 14,221 Loma Linda University 1,016 Mountain View Power Co. 1,040 Muscoy Mutual Water Company No. 1 1,767 San Bernardino County - Facility Management 1,532 San Bernardino Valley M.W.D. - Terrace Water Company 984 West Valley Water District 11,752 Yucaipa Valley Water District - 159/015042-0001 10094328.32 a01/19/18 Other Non-Plaintiff Extractions 55,412 Non-Plaintiff Total: 167,238 Safe YieldLast 5 years: The safe yield for the previous 5, complete, calendar years shall be proportioned based upon the total water use for each Party, as follows: Safe YieldLast 5 Years = Water Use X Safe YieldNon Plaintiffs Where, Water Use is a percentage (%) and is defined above Safe YieldNon Plaintiffs = defined by the Western-San Bernardino Watermaster from time to time, currently 172,745 acre-feet Credit for Water. A party can provide a new regional supply for basin benefit and receive monetary credit towards their Equitable water cost. Credit for Water ($) = water provided for basin benefit x SWP Cost where, Water provided for basin benefit = local surface water available to an agency that is controlled by that agency and intentionally delivered for groundwater recharge into the SBBA or new recycled water an agency is using to offset potable water use or is recharging into the SBBA above the amount of recycled water that agency was utilizing during the base period SWP Cost = defined above III. Formula for Voting Weight. The voting weight for each Party will be calculated, as follows: Voting Weight = Total Party Cost Total Costs Where, Total Party Cost = Equitable O&M Cost Non Plaintiffs + Equitable Water Cost Total Costs = 0.7205 x O&M Costs + Total Sustainable Water Cost The total sum of all of the individual Voting Weight values shall be equal to 1.0. BOARD AGENDA STAFF REPORT Agenda Item #5. Meeting Date: January 24, 2018 Discussion Item To: Governing Board Members From: General Manager/CEO Subject: Review and Approve Update to Cap ital Assets Po licy 7.4 RECOMMEND ATION: Staff recommends that the Board of Directors (Board) review and approve the attached Capital Assets Po licy 7.4. BACKGROUND / ANALYSIS: The East Valley Water District (District) is an infrastructure-based organization with over $131.3 million in net Water and Wastewater capital assets. In addition to the cap ital assets the District already owns and operates, the adopted Fiscal Year 2017-18 Capital Budget contains $0.6 million in capital outlay expend itures and $6.8 million in cap ital improvement pro jects for a total Cap ital Budget of $7.4 million. The District has made, and will continue to make investments in cap ital assets to ensure Ratepayers are provided the highest level of public service. One of the District’s Organizational Endeavors is to “Dedicate Effort Toward System Maintenance and Modernization,” which regularly leads to the construction, acquis ition, and maintenance of District infrastructure and property. Additionally, the District has developed a po licy review schedule to ensure Polic ies related to financ ial matters are reviewed on a three-year cyc le. The Cap ital Assets Po licy has been selected for review because the last review was in September 2013. The attached policy defines criteria to ensure adequate stewardship over District resources through contro l and accountab ility of capital assets. In developing the polic y, staff utilized Cap italization Thresholds for Cap ital Assets, a Best Practice Statement published by the Government F inance Officers Association (G FOA). Recommended by: John Mura General Manager/CEO Respectfully submitted: Brian Tompkins Chief Financial Officer AGENCY GOALS AND OBJECTIVES Goal and Objectives II - Maintain a Commitment to Sustainability, Transparency, and Accountability (A) - Practice transparent & accountable fiscal management REVIEW BY OTHERS: This agenda item has been reviewed by the Finance & Human Resources Standing Committee. FISCAL IMPACT There is no fiscal impact associated with this agenda item. ATTACHMENTS: Description Type Capital Assets Policy 7.4 Backup Material EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Capital Assets Policy Original Approval Date: September 25, 2013 Last Revised: January 24, 2018 Policy No: 7.4 Page 1 of 4 Purpose This policy is established to provide guidelines to ensure adequate stewardship over District resources through control and accountability of capital assets, and to collect and maintain complete and accurate capital assets information required for preparation of financial statements in accordance with generally accepted accounting principles. Definitions Capital assets are assets that are owned by the East Valley Water Distri ct (District) and are used in District operations. They may be tangible (such as land, buildings, machinery, equipment, and vehicles) or intangible (such as easements, software, and water rights). Characteristically, capital assets: • Have an initial useful life in excess of two years; and • Have an acquisition cost of $5,000 or more. The recorded value of the capital asset includes the purchase price plus sales tax, as well as costs to acquire (shipping and handling), install (excluding site preparation costs), secure, and prepare the asset for its intended use. Improvements to an existing asset that extends the life of the asset are capitalized and depreciated over the remaining useful life of the related asset. Meters and service line components are an except ion to the $5,000 limit as they are significantly lower in price, but have estimated useful lives of at least 10 years. Policy A. Improvement/Repair/Maintenance Expenses - Routine repair and maintenance costs will be expensed as they are incurred and will not be capitalized. Major repairs will be capitalized if they result in betterments/ improvements to the District’s capital assets. To the extent that a project replaces the “old” part of a capital asset, outlays will not be capitalized; and to the extent tha t the project is betterment/improvement, outlays will be capitalized. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Capital Assets Policy Original Approval Date: September 25, 2013 Last Revised: January 24, 2018 Policy No: 7.4 Page 2 of 4 B. Capital Improvement Projects - Capital improvement projects are projects with a useful life greater than 5 years, and an estimated cost of more than $25,000. Examples include construction or major renovations of buildings or utility systems. Such projects will be included in the capital budget, rather than in operating. Upon completion of the project, the value of the asset will be removed from the value of “construction-in-process” and added to capital asset records and will be depreciated appropriately. Procedures A. Tracking Capital Assets - All assets fitting descriptions of a capital asset shall be recorded on asset listings maintained by the Finance Department. All assets tha t are disposed shall be removed from said listings. A physical inventory of tangible capital assets will be taken at least once every five years and reconciled with accounting records. Plant, automobiles, and other assets that are reviewed annually for the purpose of maintaining insurance schedules will be reconciled during the insurance review. Discrepancies between physical and recorded assets will be investigated. B. Depreciation Method and Expected Useful Life of Assets - All depreciable assets are depreciated using the straight-line method of depreciation. Depreciation begins in the year the capital asset was acquired. The estimated lives of acquired assets are assigned in the following manner: Financial Reporting Category Asset Type Asset Life (in years) Land & Easements Land Infinite Water Rights Water Stock Infinite Source of Supply Water Wells 30 Source of Supply 30 Transmission and Distribution Reservoir 60 Tank 50 Pipeline 50 Meters & Service lines 20 EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Capital Assets Policy Original Approval Date: September 25, 2013 Last Revised: January 24, 2018 Policy No: 7.4 Page 3 of 4 Financial Reporting Category Asset Type Asset Life (in years) Transmission and Distribution Fire Hydrant Meters 20 North Fork Pipeline 50 Pumping Plant Pumping Plant 25 Treatment Plant Treatment Plant 50 General Plant Buildings 50 Land and Building Improvements 15 Office Furniture 7 Software 3 Computers 5 General Equipment 5 Vehicles 5 Heavy Equipment 10 C. Disposal of Surplus Items - The Board adopted Policy 7.1.1 Surplus Property Policy on June 14, 2017. The Surplus Property Policy addresses the District’s requirements for proper disposal of property. Control Procedures for Certain Non-Capital Items Some assets that do not meet the criteria for capitalization for financial reporting purposes still require safeguarding in order to ensure their continued availability for use in District operations. These assets include: • Items requiring special attention to ensure legal compliance – Legal or contractual provisions may require a heightened level of accountability over certain items (i.e. - items acquired with grant funds). • Items with a heightened risk of the ft – Such items are easily transportable, are readily marketable, and easily diverted to personal use (e.g. – laptop computers). All non-capital assets meeting these criteria will be recorded on asset listings maintained by the user department. Specific individuals within the departments should be assigned the task of maintaining and updating asset listings. Such assignment should be documented and communicated to the Finance Department. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Capital Assets Policy Original Approval Date: September 25, 2013 Last Revised: January 24, 2018 Policy No: 7.4 Page 4 of 4 At the end of each fiscal year, the responsible individuals will submi t an updated listing to the Finance Department with explanations for any changes. The Finance Department will verify the data reported on the assets listings no less than once every three years. Terms & Definitions Utilized by the District: • Capital Asset: Non-financial assets that are used in operations and have an initial useful life more than one year. • Capitalization Threshold: The minimum cost which an asset must exceed in order to be capitalized. • CIP (Capital Improvement Project): The District defines CIP as a long-term asset account that accumulates the cost of a project that has not yet been placed into service. • Depreciation: The process of allocating the cost of an asset over a period of time. • Depreciation Method: The District utilizes the straight-line method. • Intangible Assets: An asset that is not physical in nature. The District most important intangible asset is water rights. • Tangible Assets: An asset that has a physical form. • Useful Life: The amount of time that an asset is expected to provide benefit to the District. Revised: January 24, 2018 BOARD AGENDA STAFF REPORT Agenda Item #6. Meeting Date: January 24, 2018 Discussion Item To: Governing Board Members From: General Manager/CEO Subject: Reject Board Room Renovation Pro ject RECOMMEND ATION: Staff is recommend ing that the Board of Directors reject all contract bids for the Board Room Renovation Pro ject. BACKGROUND / ANALYSIS: Since moving into the Headquarters fac ility in 2014, the build ing has been utilized in a variety of benefic ial ways. Through these experiences, staff identified a number of improvements relating to fac ility rentals and s ite security. Through the input of all departments, renovation p lans were developed to meet the on-go ing needs of District activities. The resulting des ign was inc luded in a pub lic Request for Bids released on November 29, 2017. At the January 8, 2018 Bid Opening, the District only received one b id from Pence Construction. Due to the lack of comparative b ids, staff is recommend ing that the Board of Directors reject all bids allowed in the competitive bid process. This will allow for staff to reevaluate the best means to proceed, inc lud ing the selection of portions of the pro ject in lieu of the entire original project. Any portion cons idered to move forward fo llowing the b id rejection would be b id as required within the District's Purchasing Po licy. Both the Purchasing Po licy and the Request for Bid document reserve the right of the District to reject an or all bids if deemed to be in our best interest. AGENCY GOALS AND OBJECTIVES Goal and Objectives II - Maintain a Commitment to Sustainability, Transparency, and Accountability (A) - Practice transparent and accountable fiscal management Goal and Objectives IV - Promote Planning, Maintenance and Preservation of District Resources (A) - Develop Projects and Programs to Ensure Safe and Reliable Services FISCAL IMPACT There is no fiscal impact associated with this agenda item. ATTACHMENTS: Description Type Bid List Backup Pence Bid Document Backup BOARD AGENDA STAFF REPORT Agenda Item #7. Meeting Date: January 24, 2018 Discussion Item To: Governing Board Members From: General Manager/CEO Subject: Consider Update to the Board of Directors Evaluation Policy and General Manager/CEO Evaluation Policy RECOMMENDATION: Staff recommends that the Board of Directors review and approve revisions made to the Board of Directors Evaluation Policy and the General Manager/CEO Evaluation Policy. BACKGROUND / ANALYSIS: After expressing the desire for a formal process to evaluate the Board of Directors and General Manager/CEO, the Board of Directors approved formal evaluation policies in December of 2016 for inclusion in the Board of Director’s Handbook. These policies were implemented during the 2017 evaluation of the Board of Directors and General Manager/CEO. Since the implementation process it was determined that the following updates should be made as follows: Board of Directors Evaluation Policy – This policy set the schedule for Board of Director evaluations to be conducted every two years in odd-numbered years to allow for all Directors to have served a minimum of one full year on the Board prior to being evaluated. In March of 2017, the Board of Directors adopted Resolution 2017.05 approving a change in the regular election for the Board from November of odd-numbered years to the statewide general election in November of even-numbered years. In accordance with this change in election cycle, the Board of Directors Evaluation Policy schedule is now set for evaluations to be conducted every two years in even- numbered years. General Manager/CEO Evaluation Policy – As part of post-processing assessment after the implementation of the General Manager/CEO Evaluation Policy, it was determined that slight adjustments to the policy be made to align with the District’s strategic initiatives. Recommended by: John Mura General Manager/CEO Respectfully submitted: Kerrie Bryan HR/Risk & Safety Manager These adjustments include responsibility for the General Manager/CEO to submit a self-evaluation to the Board of Directors annually and the Board will continue to evaluate the General Manager/CEO annually. If the Board wishes to amend or extend the General Manager/CEO’s contract prior to an annual evaluation, the rating process will include a 360-degree evaluation which includes rating by senior management, and may include rating by subordinate staff, in addition to the self-evaluation and Board of Director’s evaluation. AGENCY GOALS AND OBJECTIVES Goal and Objectives I - Implement Effective Solutions Through Visionary Leadership (B) - Maximize internal capabilities through ongoing professional development REVIEW BY OTHERS: This agenda item has been reviewed by the administrative team. FISCAL IMPACT There is no fiscal impact associated with this agenda item. ATTACHMENTS: Description Type Board of Directors Evaluation Policy Backup Material General Manager/CEO Evaluation Policy Backup Material BOARD OF DIRECTORS HANDBOOK Policies and Programs of the Board of Directors Policy Title: Board of Directors Evaluation Policy Original Approval Date: December 14, 2016 Last Revised: January 24, 2018 Policy No: Board of Directors Handbook Page 1 of 2 Purpose This policy is designed to provide professional development opportunities to the Board of Directors which will enhance Board contributions and assist in the achievement of the District’s strategic objectives. Policy It is the policy of East Valley Water District to regularly evaluate the Directors related to their contributions to the Board. The feedback received will provide an invaluable measurement by which the Board can prioritize its goals for the future while promoting the highest standards of Board governance. A 360-degree (multi-rater) evaluation process will be conducted to create a channel of open communication through verbal feedback from raters. Raters will include self (self- rater), fellow Directors, and the Senior Management Team. The evaluation process will be facilitated by an independent third-party consultant (Consultant) selected by the full Board of Directors and will consist of verbal interviews and discussions between the Consultant and each rater. Schedule for Evaluation A.The Board of Directors evaluation process will be conducted every two years in even numbered years. This will allow for all Directors to have served a minimum of one full year on the Board prior to being evaluated. B.The evaluation process will be initiated by January 15th and conclude by the end of February, during even numbered years, to coincide with the General Manager’s evaluation process. Final reports will be prepared and presented in March of each year. Performance Evaluation Procedure 1.Consultant will contact all Directors and raters at the start of the evaluation process and give them the evaluation timeline. BOARD OF DIRECTORS HANDBOOK Policies and Programs of the Board of Directors Policy Title: Board of Directors Evaluation Policy Original Approval Date: December 14, 2016 Last Revised: January 24, 2018 Policy No: Board of Directors Handbook Page 2 of 2 2. Consultant will conduct individual interviews with each Director to obtain their verbal feedback (self-rater) based on a set of questions and/or competencies determined by the Board prior to the start of the evaluation proc ess. During this same interview, after the completion of the self-rating, Consultant will interview the Directors regarding their fellow Directors. 3. Upon completion of Director interviews, Consultant will meet with the Senior Management Team to obtain verbal feedback on all Directors. 4. After interviews have been conducted, Consultant and the General Manager/CEO will meet with each individual Director to provide verbal feedback and discuss how the information received can help enhance Director contributions to carry out the vision and strategic direction of the District. Confidentiality Disclosure As the purpose of this evaluation process is to provide individual professional development for each Director, the Consultant and General Manager/CEO will not share feedback obtained with fellow Directors or staff members. The feedback and comments received during the interview process will remain anonymous. Revised: January 24, 2018 BOARD OF DIRECTORS HANDBOOK Policies and Programs of the Board of Directors Policy Title: General Manager/CEO Evaluation Policy Original Approval Date: December 14, 2016 Last Revised: January 24, 2018 Policy No: Board of Directors Handbook Page 1 of 2 Purpose This policy is designed to ensure that the Board of Directors and the General Manager/CEO are in sync on carrying out the vision and strategic direction of the District. Evaluation of the General Manager/CEO can help improve confidence, support professional development, and enhance productive interactions between the Board, General Manager/CEO, and District staff. Policy It is the policy of East Valley Water District to regularly evaluate the General Manager/CEO related to performance standards and completion of specified goals and objectives determined prior to the start of the evaluation process. The evaluation process may include self-evaluations, evaluations by the Board of Directors, and 360-degree (multi-rater) evaluations to create a channel of open communication through feedback from raters. 360-degree raters may include, in addition to Director and self-evaluations, senior management and subordinate staff. The evaluation process will be facilitated by an independent third-party consultant (Consultant) selected by the full Board of Directors and will consist of interviews and discussions between the Consultant and each rater. The Consultant will provide all necessary forms and will compile final reports at the end of the evaluation process. Schedule for Evaluation A. The District will initiate the evaluation process by January 15th of each year and conclude by the end of February in order to have final reports prepared and presented to the General Manager/CEO and Board of Directors in March of each year. B. The evaluation process will be at the discretion of the Chair and Vice Chair and the rating process will include an annual self -evaluation and Board of Director’s evaluation of the General Manager/CEO. If the Board wishes to amend or extend the General Manager/CEO’s contract prior to an annual evaluation, the rating process will include a 360 -degree evaluation which includes rating by senior management, and may include rating by subordinate staff, in addition to the self-evaluation and Board of Director’s evaluation. BOARD OF DIRECTORS HANDBOOK Policies and Programs of the Board of Directors Policy Title: General Manager/CEO Evaluation Policy Original Approval Date: December 14, 2016 Last Revised: January 24, 2018 Policy No: Board of Directors Handbook Page 2 of 2 Performance Evaluation Procedure 1. Consultant will contact all parties involved in the General Manager/CEO’s evaluation process, including raters, and explain their role in the process along with directions on completing evaluation forms. An evaluation timeline will be given. 2. The General Manager/CEO will complete his/her self-evaluation. Once the self- evaluation is complete, Consultant will conduct an individual interview with the General Manager/CEO to discuss the self-evaluation. 3. Raters will complete evaluation forms, then C onsultant will conduct interviews for their feedback and comments. 4. After all interviews have been conducted, Consultant will prepare the final evaluation reports. 5. Final evaluation reports will be presented to the Board of Directors and General Manager/CEO. 6. Consultant will conduct a one-on-one meeting with the General Manager/CEO to summarize the evaluation reports and provide coaching on identified areas of improvement, if necessary, to enhance the General Manager/CEO’s abilities to carry out the vision and strategic direction of the District. 7. Completed evaluation reports will be maintained in the General Manager/CEO’s Personnel File in the Human Resources office. Confidentiality Disclosure The feedback and comments received during the interview process will remain anonymous and Consultant will only share feedback obtained with the General Manager/CEO and the Board of Directors. Revised: January 24, 2018 MANAGING THE SAN BERNARDINO BASIN AREA (SBBA) FOR SUSTAINABILITY SHARED RESOURCE. SHARED RESPONSIBILITY. GROUNDWATER COUNCIL TASK FORCE WE DEPEND ON LOCAL RAINFALL AND STORAGE IN THE SBBA 10,000 9,000 9,000 San Bernardino Rialto-Colton Yucaipa Riverside North 232,100 Local Rain 72% Recycled 5% SWP (No. CA Rain) 23% (Lytle Creek & Bunker Hill) LOCAL RAINFALL IS NOT ENOUGH 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2020 2025 2030 2035 2040 (Average Year, RUWMP) Precip. (Surface Water) Precip. (Groundwater) Total Demand Total Demand + 10% reliability margin -250 -200 -150 -100 -50 0 50 100 150 200 250 300 350 400 0 10 20 30 40 50 60 70 80 90 Cu m u l a t i v e D e p a r t u r e f r o m S a f e Y i e l d P e r i o d A v g ( i n . ) Av e r a g e A n n u a l P r e c i p i t a t i o n ( i n . ) Water Year San Bernardino Basin Area Three Station Precipitation Index Average of Lytle Creek / Big Bear (SAR) / Mill Creek - Precip Data Safe Yield Period Avg (1934-1960) Historic Average (1931-Present)Cumulative Departure from Safe Yield Period Avg 20-YEAR DROUGHTS ARE COMMON About twice as severe WHAT IF DROUGHTS LAST LONGER? SUPPLEMENTAL WATER MANAGEMENT CURRENT •AMOUNT OF SWP: ORDERS (SOME AGENCIES) •COST FOR RECHARGE: SBVWCD GW CHARGE (SOME AGENCIES) •COST FOR SWP: SOME AGENCIES FOR THEIR NEEDS •RESULT:HISTORIC LOW STORAGE LEVELS, NOT SUSTAINABLE CURRENT: HISTORIC LOW STORAGE LEVELS, NOT SUSTAINABLE -1,400,000 -1,200,000 -1,000,000 -800,000 -600,000 -400,000 -200,000 0 200,000 400,000 600,000 19 3 4 19 3 6 19 3 8 19 4 0 19 4 2 19 4 4 19 4 6 19 4 8 19 5 0 19 5 2 19 5 4 19 5 6 19 5 8 19 6 0 19 6 2 19 6 4 19 6 6 19 6 8 19 7 0 19 7 2 19 7 4 19 7 6 19 7 8 19 8 0 19 8 2 19 8 4 19 8 6 19 8 8 19 9 0 19 9 2 19 9 4 19 9 6 19 9 8 20 0 0 20 0 2 20 0 4 20 0 6 20 0 8 20 1 0 20 1 2 20 1 4 Ac r e -fe e t Cumulative Change in Storage (CCIS)CCIS without SWP Previous historic low CURRENT SUPPLEMENTAL WATER MANAGEMENT -OUT OF BALANCE Supply Demand WE HAVE ACCESS TO PLENTY OF SUPPLEMENTAL WATER SUPPLIES Co s t o f S u p p l y 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2020 2025 2030 2035 2040 AF Y Recycled Water (estimate) SWP (Sites) SWP (CA Fix) Stormwater Capture SWP - Table A into Storage SWP - Table A for Direct Deliveries Precip. (Surface Water) Precip. (Groundwater) Total Demands Total Demands + 10% Reliability Factor STORAGE MANAGEMENT CURRENT •AMOUNT OF SWP: ORDERS (SOME AGENCIES) •COST FOR RECHARGE: SBVWCD GW CHARGE (SOME AGENCIES) •COST FOR SWP: SOME AGENCIES FOR THEIR NEEDS •RESULT:HISTORIC LOW STORAGE LEVELS, NOT SUSTAINABLE PROPOSED: SUSTAINABLE •INCREASE SUPPLEMENTAL WATER STORAGE •AMOUNT OF SWP TO MEET LONG- TERM NEEDS (RUWMP, 2040) •SHARE COSTS EQUITABLY (ALL AGENCIES): •COST FOR RECHARGE: ALL •COST FOR SWP: ALL •RESULT:HEALTHY STORAGE LEVELS, SUSTAINABLE GROUNDWATER ILLUSTRATION OF SUSTAINABLE STORAGE MANAGEMENT -1,400,000 -1,200,000 -1,000,000 -800,000 -600,000 -400,000 -200,000 0 200,000 400,000 600,000 19 3 4 19 3 6 19 3 8 19 4 0 19 4 2 19 4 4 19 4 6 19 4 8 19 5 0 19 5 2 19 5 4 19 5 6 19 5 8 19 6 0 19 6 2 19 6 4 19 6 6 19 6 8 19 7 0 19 7 2 19 7 4 19 7 6 19 7 8 19 8 0 19 8 2 19 8 4 19 8 6 19 8 8 19 9 0 19 9 2 19 9 4 19 9 6 19 9 8 20 0 0 20 0 2 20 0 4 20 0 6 20 0 8 20 1 0 20 1 2 20 1 4 Ac r e -fe e t Cumulative Change in Storage (CCIS)CCIS without SWP CCIS with Surplus SWP Management Zone Sustainable SUSTAINABLE SUPPLEMENTAL WATER MANAGEMENT Supply (2040)Demand EQUITABLE COST ALLOCATION •JULY 2016 –GROUNDWATER COUNCIL (GC) TASK FORCE ASKED THE BTAC ENGINEERING SUBCOMMITTEE TO DEVELOP AN EQUITABLE COST ALLOCATION METHODOLOGY TO SHARE THE COST OF SUPPLEMENTAL WATER FOR LONG-TERM SUSTAINABILITY OF THE SBBA •THE METHODOLOGY DEVELOPED FOR THE SBBA COULD BE APPLIED TO THE OTHER BASINS WITHIN VALLEY DISTRICT THOROUGH ANALYSIS Proportion Water Cost •Pumping •Assessed Value •Surcharge •Gap between supplies and demand (Gap) •Gap + Sustainability Proportion Safe Yield (used in Gap calculation) •Base Period (1959-63) Pumping •Current Pumping (last 5 years) •Average of Base Period and Current Pumping •Pumping (Base Period), Total Water Use (last 5 years) Redistribute Agricultural Pumping During the Base Period (used to proportion SY) •Geographic •Equal •Current pumping •None •Sale of the agricultural well July 2016 Demand (used in for Gap calculation) •2020 (estimate from RUWMP), requires "true-up" •Most current demand documented by Watermaster (today, 2016) Credit for regional water •Offsets purchase of SWP •Value of SWP given to regional supplies •Must show control of supply and intentionally deliver to storage Proportion Operations & Maintenance (O&M)Costs •Current pumping (last year) •Riverside Entities fixed at 28% of total O&M GC TASK FORCE EQUITABLE COST ALLOCATION FEATURES •Higher cost for agencies that conserve less •Higher cost for agencies that pump more •Higher cost for agencies whose demands exceed their supplies (more stress on the basin) •Lower cost for agencies that conserve •Lower cost for agencies that pump less •Lower cost for agencies whose demands are lower than their supplies •Lower cost for agencies that provide water to the SBBA COST OF SUPPLEMENTAL WATER SUPPLIES ($/AF) $150 $118 $125 $450 $3,000 $1,650 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Stormwater capture SWP - Recharge SWP - Direct Recycled - Low Recycled - High Ocean Desalination Es t i m a t e d C o s t P a i d b y R e t a i l W a t e r A g e n c y i n SB V M W D ESTIMATED ANNUAL COST OF LONG-TERM SUSTAINABILITY -SBBA O&M, $1,000,000 Supplemental Water, $3,400,000 GC TASK FORCE RECOMMENDED EQUITABLE COST-SHARING METHOD (REPLACES SBVWCD GROUNDWATER CHARGE AND CURRENT SWP PURCHASES) O&M ($1 MILLION) PROPORTIONED FROM TIME TO TIME BASED ON MOST CURRENT PUMPING DATA (STRESS) WATER ($3.4 MILLION) •STEP 1 (GAP): AGENCIES FILL THEIR OWN GAP BETWEEN DEMAND AND SUPPLIES: (AF X $118/AF AND/OR $125) •SAFE YIELD DURING BASE PERIOD (1959-63) AND CURRENT PROPORTIONED BASED ON TOTAL WATER USE •STEP2 (SUSTAINABILITY): REMAINDER PROPORTIONED BASED ON TOTAL WATER USE •$3.4 MILLION –AGENCY GAPS ($) •STEP 3: CREDIT FOR ANY WATER SUPPLY PROVIDED TO THE BASIN GC TASK FORCE RECOMMENDATION (EACH AGENCY) Supplies Demand 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 Av e r a g e S B B A P u m p i n g ( A F ) GC Task Force Recommended Equitable Cost-Sharing Method for Sustainability in the SBBA Annual O&M and SWP for Long-Term Sustainability (currently 2040) Gap Sustainability ($)Equitable O&M Cost Credit for Water 2012-16 Average SBBA Pumping GC TASK FORCE RECOMMENDED EQUITABLE COST-SHARING METHOD FOR SUSTAINABILITY IN THE SBBA ANNUAL O&M AND SWP FOR LONG-TERM SUSTAINABILITY (CURRENTLY 2040) & VOTING WEIGHT Total (2017) Agency Total Costs (2017)Voting Weight Bear Valley Mutual Water Company $ 120 0.00% City of Colton $ 114,889 3.08% City of Loma Linda $ 254,297 6.81% City of Redlands $ 675,115 21.23% City of Rialto $ 322,534 8.71% City of San Bernardino $ 1,413,384 37.84% East Valley Water District $ 442,602 14.08% Fontana Union Water Company NA NA Loma Linda University $ 31,157 0.83% Mountain View Power Co.$ 84,747 Muscoy Mutual Water Company No. 1 $ 44,106 San Bernardino County -Facility Management $ 17,976 San Bernardino Valley M.W.D.$ 1,987 Terrace Water Company $ 15,082 West Valley Water District $ 262,360 7.02% Yucaipa Valley Water District $ 14,603 0.39% Other San Bernardino Extractions $ 222,549 San Bernardino Entities Total:$3,917,509 100% Western Entities Total:$ 279,500 Total:$ 4,197,009 BOARD AND COUNCIL CONSIDERATION Groundwater Council Party -Approval Consideration Status Name Committee Dates Board/Council Date Bear Valley Mutual Water Company City of Colton City of Loma Linda NA February 13, 2018 City of Redlands City of Rilto 1/31/18 & 2/20/18 February 27, 2018 East Valley Water District January 24, 2018 Fontana Water Company Loma Linda University San Bernardino Municipal Water Department San Bernardino Valley Municipal Water District February 13, 2018 February 20, 2018 San Bernardino Valley Water Conservation District NA February 14, 2018 West Valley Water District Yucaipa Valley Water District January 30, 2018 February 6, 2018