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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/27/2018REG ULA R BO A RD MEET IN G C losed Session Begins at 4:30 P M J une 27, 2018 - 5:30 P M 31111 Greenspot Road, Highland, C A 92346 AGE N D A "In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors". 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 OMME 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 D istrict C lerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of 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 SSI O N 2.C O N FEREN C E WIT H LEG A L C O UN SEL - A N T IC IPAT ED LIT IG AT IO N Significant exposure to litigation pursuant to Government C ode Section 54956.9(d) (2) One Potential Case 5:30 P M RE C O N 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 SED SESSIO N A C T IO N S IT EMS P U B L I C C O MME 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 Consent Calendar. a.J une 12, 2018 special meeting minutes b.Financial Statements for May 2018 c.May 2018 D isbursements: Accounts payable disbursements for the period include check numbers 252181 through 252363, bank drafts, and A C H Payments in the amount of $2,157,179.95 and $379,200.70 for payroll. I N F ORMAT I O N AL I T E MS 4.Sterling Natural Resource C enter (SN RC) Outreach Update 5.Legislative Update D I SC U SSI ON AN D P O SSI B L E AC T I O N I T E MS 6.C onsider Adoption of FY 2018-19 Budget RE P O RT S 7.Board of Directors' Reports 8.General Manager/C EO Report 9.Legal Counsel Report 10.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ubmitted to the Board after dis tribution of the agenda packet are availab le fo r pub lic ins p ectio n in the District's o ffic e lo cated at 31111 G reens p o t R d., Highland , during normal bus ines s ho urs. Also, s uc h d o cuments are available on the District's website at www.eastvalley.org subject to staff's ability to pos t the doc uments before the meeting. P urs uant to G overnment C o d e S ec tio n 54954.2(a), any reques t for a d is ab ility-related modific ation or ac commodation, inc luding auxiliary aid s o r s ervic es , that is s o ught in order to p artic ip ate in the above- agendized p ublic meeting s ho uld be d irected to the District C lerk at (909) 885-4900 at leas t 72 ho urs prior to said meeting. 1 Minutes 06/12/2018 smg Draft pending approval EAST VALLEY WATER DISTRICT June 12, 2018 SPECIAL BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 5:30 p.m. Director Coats led the flag salute. PRESENT: Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT: Director: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Justine Hendricksen, District Clerk; Shayla Gerber, Senior Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Carrillo declared the public participation section of the meeting open at 5:30 p.m. There being no written or verbal comments, the public participation section was closed. FY 2018-19 BUDGET WORKSHOP The General Manager/CEO stated that this is the third meeting in a series of budget workshops and reminded the Board and the public that the District is a performance- based organization where the Board approved a set of goals and objectives for the General Manager/CEO. The Chief Financial Officer recited district-wide goals and reviewed a summary of following: the operating budget, district-wide revenues and expenses, a program overview of each department, capital outlay, capital improvement projects, and authorized positions. He pointed out that a large portion of Public Affairs budget will be used for Sterling Natural Resource Center community outreach. The Board had several questions including but not limited to: methods used to forecast the budget, details on site improvements at Plant 135, and the usage of drones. 2 Minutes 06/12/2018 smg The General Manager/CEO commended the Chief Financial Officer for his hard work on the budget; he stated that he has a detailed knowledge of each department and its operations; and thanked staff for their hard work. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reminded the Board that the Employee Events Association will be hosting a Family Movie Night this Friday, June 15 for employees and their family. LEGAL COUNSEL REPORT No report at this time. BOARD OF DIRECTORS’ COMMENTS Director Goodrich commended staff for their work on the budget. Director Morales commented that he is pleased with the conservative approach on the budget. Director Coats stated that he likes the conservative approach with the budget and made the following statement: “Help ensure your water future by supporting the Sterling Natural Resource Center”. Vice Chairman Smith thanked the Chief Financial Officer and staff for the presentation. Chairman Carrillo echoed the comments of Vice Chairman Smith. ADJOURN The meeting adjourned at 6:48 p.m. ___________________________ Chris Carrillo, Board President __________________________ John Mura, Secretary R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Brian Tomp kins C hief F inancial O ffic er B O AR D AGE N D A S TAF F R E P ORT Agenda Item #3.b . Meeting Date: June 27, 2018 C ons ent Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: F inanc ial S tatements fo r May 2018 R E C O MME N D AT IO N: S taff rec ommend s that the Bo ard o f Direc to rs ac cept and file the attac hed financ ial statements as o f, and for the period end ed , May 31, 2018. B AC KGR O UN D / AN ALYS IS : Includ ed herewith fo r the Board’s review is a s ummary o f Eas t Valley Water District’s financ ial results , as of May 31, 2018. AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e Dep artment. F IS C AL IMPAC T T here is no fis cal impac t as s o c iated with this agend a item. ATTACH M E N TS: Description Type May 20 18 Financial Statement M onthly Backup Material May 20 18 Financial Statements Backup Material FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2018   page | 1 The following is a highlight summary of the District’s financial results as of May 31, 2018. Please note all values presented are in millions. Statement of Net Position Total assets at May 31, 2018 are $192.93 million. CLASSIFICATION WATER WASTEWATER DISTRICT TOTAL Cash and Investments $ 18.83 $ 5.65 $ 24.48 Utility Plant, Net 109.75 19.80 129.55 Other Assets 27.18 11.72 38.90 Current Liabilities 4.87 0.27 5.14 Long Term Liabilities 53.30 6.98 60.28 Beginning Net Position 87.53 28.35 115.88 Change in Equity 10.06 1.57 11.63 Total Net Position $ 97.59 $ 29.92 $ 127.51 Below is a summary of the District’s net position as of May 31, 2018. FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2018   page | 2 Cash and Investments are $24.48 million for the month of May, an increase of $380K from the prior month. The Cash and Investments balance has increased $5.80 million over the past 12 consecutive months from $18.67 to $24.48 million. $0 $5 $10 $15 $20 $25 $30 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted Comparing current assets to current liabilities, the District has a current ratio at May 31, 2018 of 4.72 to 1, with 2 to 1 being an indication of sound financial condition. Non-Current Liabilities The Compensated Absences, less current portion is reporting negative balances on the Statement of Net Position, ($129,601) and ($64,108) on the Water and Wastewater Funds respectively. These negative balances occur during the payroll processing of vacation and sick leave usage or cash-out. The payroll system only reduces the long-term portion of the accounts. Lastly, the balances will be adjusted for actual usage during the fiscal year end close process. FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2018   page | 3 Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the period ending May 31, 2018. First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for revenues and Expense by Program. Third is a Budget-to-Actual presentation of program expense detail. Total Revenues & Expenses through May 31, 2018 are summarized below (in millions): WATER WASTEWATER DISTRICT TOTAL Revenue $ 24.97 $ 12.63 $ 37.60 Expense 14.91 11.06 25.97 Water Sales for the month ending May 31, 2018 were $1.54 million or $609K over staff projections for the month and $1.83 million over the amended projections year-to-date. $- $0.5 $1.0 $1.5 $2.0 $2.5 M i l l i o n s Water Sales by Tier Tier 1 Tier 2 Tier 3 FY 2017-18 Projection FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2018   page | 4 Water Sales by Customer Class The table below shows the District’s water sales for the month of May 2018 by customer class. All customer classes came in over projections for the month, but Residential and Multi-Family represent 78% or $475K of the total change. CUSTOMER CLASS ACTUAL PROJECTION $ CHANGE % CHANGE Residential 859,141$ 508,000$ 351,141$ 69% Multi-Family 324,372 200,000 124,372 62% Commercial 136,432 82,000 54,432 66% Irrigation 220,744 142,000 78,744 55% Total $ 1,540,689 $ 932,000 $ 608,689 65% The following table displays customer class by tier for the month of May 2018. Customer classes noted in bold text represent the top five largest variances over staff projections. CUSTOMER CLASS TIER ACTUAL PROJECTION $ CHANGE % CHANGE Residential Tier 1 376,199$ 277,000$ 99,199$ 36% Residential Tier 2 410,704 208,000 202,704 97% Residential Tier 3 72,238 23,000 49,238 214% Multi-Family Tier 1 160,708 111,000 49,708 45% Multi-Family Tier 2 110,941 69,000 41,941 61% Multi-Family Tier 3 52,723 20,000 32,723 164% Commercial Tier 1 71,238 70,000 1,238 2% Commercial Tier 2 8,647 6,000 2,647 44% Commercial Tier 3 56,547 6,000 50,547 842% Irrigation Tier 2 144,087 105,000 39,087 37% Irrigation Tier 3 76,657 37,000 39,657 107% Total $ 1,540,689 $ 932,000 $ 608,689 65% FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2018   page | 5 The chart below is a comparative illustration of current Water Revenue compared to last year’s Water Revenue. As noted in the graph Water Sales and Meter Charges experienced an increase over last year, as customers consumed 85.74 million gallons of water (115K HCF) more than May of 2017. $- $0.5 $1.0 $1.5 $2.0 $2.5 5/31/2017 5/31/2018 Mi l l i o n s Comparative Monthly Water Revenue (Water Sales & Meter Charges) Meter Tier 1 Tier 2 Tier 3 Total - $1,945,550 Total - $2,288,297 FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2018   page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2016-17 and FY 2017-18. FINANCIAL STATEMENTS MONTHLY REVIEW MAY 31, 2018   page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2016-17 and FY 2017-18. No significant changes from the previous month. WATER WASTEWATER DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 10,401,365.46$ 3,059,000.00$ 13,460,365.46$ 02 Investments 3,442,485.94 1,883,867.48 5,326,353.42 03 Accounts Receivable, Net 4,291,233.96 257,451.65 4,548,685.61 04 ‐Interest Receivable 5,951.06 3,377.19 9,328.25 14*05 Other Receivables 419,837.60 - 419,837.60 06 Due from other Governments 16,144.57 - 16,144.57 08 Inventory 294,885.12 6,721.16 301,606.28 09 Prepaid Expenses 99,286.34 23,495.23 122,781.57 18,971,190.05 5,233,912.71 24,205,102.76 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 4,984,084.35 702,389.20 5,686,473.55 11 Capital Assets not being Depreciated 19,538,449.94 10,763,060.04 30,301,509.98 13 Capital Assets, Net 109,749,619.54 19,799,516.13 129,549,135.67 134,272,153.83 31,264,965.37 165,537,119.20 Total Assets:153,243,343.88 36,498,878.08 189,742,221.96 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 3,044,585.00 155,756,600.98 37,168,687.79 192,925,288.77 Current Liabilities: 22 Accounts Payable and Accrued Expenses 774,553.20 29,959.97 804,513.17 23 Accrued Payroll and Benefits (3,353.26) - (3,353.26) 15 Customer Service Deposits 1,576,674.83 - 1,576,674.83 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 1,735,128.45 117,958.00 1,853,086.45 4,866,258.49 267,264.34 5,133,522.83 Non-Current Liabilities: 20 Compensated Absences, less current portion (129,601.62) (64,108.12) (193,709.74) 28 Net Pension Liability 7,819,274.72 2,205,437.28 10,024,712.00 21 Long Term Debt, Less Current Portion 45,202,162.78 4,635,698.29 49,837,861.07 27 Other Liabilities 812.95 86,639.16 87,452.11 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 405,103.37 114,260.63 519,364.00 53,297,752.20 6,977,927.24 60,275,679.44 58,164,010.69 7,245,191.58 65,409,202.27 31 Equity 87,534,786.50 28,349,562.67 115,884,349.17 87,534,786.50 28,349,562.67 115,884,349.17 Tot Total Revenue 24,965,466.45 12,628,999.86 37,594,466.31 Tot Total Expense 14,907,662.66 11,055,066.32 25,962,728.98 10,057,803.79 1,573,933.54 11,631,737.33 97,592,590.29 29,923,496.21 127,516,086.50 155,756,600.98$ 37,168,687.79$ 192,925,288.77$ Total Liabilities, Equity and Current Surplus (Deficit): Total Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Unaudited As of May 31, 2018 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Page 1 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,540,689.00$ 15,544,459.18$ 15,000,000.00$ -$ -$ -$ 15,000,000.00$ (544,459.18)$ 42 Meter Charges 747,308.21 8,205,535.40 8,845,000.00 - - - 8,845,000.00 639,464.60 43 Penalties 48,610.12 539,687.66 445,500.00 2,364.15 39,179.49 40,000.00 485,500.00 (93,367.15) 44 Wastewater System Charges - - - 396,016.43 4,268,059.97 4,545,000.00 4,545,000.00 276,940.03 45 Wastewater Treatment Charges - - - 785,729.56 7,974,930.54 7,900,000.00 7,900,000.00 (74,930.54) 46 Other Operating Revenue 81,917.43 430,907.75 131,500.00 284,861.37 294,086.37 70,000.00 201,500.00 (523,494.12) 47 Non Operating Revenue 2,337.01 239,674.90 125,000.00 - 47,541.93 22,000.00 147,000.00 (140,216.83) 48 Gain or Loss on Disposition - 5,201.56 - - 5,201.56 - - (10,403.12) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - - Revenue Total: 2,420,861.77 24,965,466.45 24,547,000.00 1,468,971.51 12,628,999.86 12,577,000.00 37,124,000.00 (470,466.31) - - - - - Expense by Category 51 Labor 337,525.75 3,788,228.28 4,791,000.00 96,464.85 1,099,520.17 1,422,000.00 6,213,000.00 1,325,251.55 56 Benefits 118,447.40 2,407,623.84 2,722,500.00 31,603.18 538,180.02 662,500.00 3,385,000.00 439,196.14 63 Contract Services 331,687.03 2,963,168.89 3,723,100.00 875,097.15 8,791,073.85 8,909,900.00 12,633,000.00 878,757.26 65 Professional Development 18,164.53 154,339.50 270,300.00 8,382.73 59,590.87 103,700.00 374,000.00 160,069.63 53 Overtime 21,118.64 235,848.02 252,600.00 1,072.92 44,553.97 51,400.00 304,000.00 23,598.01 62 Materials and Supplies 152,203.80 958,613.51 1,120,200.00 13,711.65 102,489.42 121,800.00 1,242,000.00 180,897.07 64 Utilities 173,253.49 1,903,806.53 2,353,800.00 8,376.01 103,066.56 182,200.00 2,536,000.00 529,126.91 52 Temporary Labor - 1,814.40 10,500.00 - 777.60 4,500.00 15,000.00 12,408.00 67 Other 5,735.93 222,799.75 260,000.00 2,414.27 93,423.86 111,000.00 371,000.00 54,776.39 54 Standby 2,320.00 27,326.59 38,000.00 280.00 5,040.00 2,000.00 40,000.00 7,633.41 61 Water Supply 800.00 606,075.43 801,000.00 - - - 801,000.00 194,924.57 71 -Debt Service - 3,712,146.92 4,002,000.00 - 312,350.00 313,000.00 4,315,000.00 290,503.08 81 -Capital Improvement 153,056.35 441,409.43 3,525,000.00 50,693.51 806,336.20 1,140,000.00 4,665,000.00 3,417,254.37 82 -Capital Outlay 46,829.15 257,840.90 480,000.00 6,571.58 44,862.40 131,000.00 611,000.00 308,296.70 83 -Accounting Income Add back - (2,773,379.33) - (57,265.09) (946,198.60) - - 3,719,577.93 Expense Total: 1,361,142.07 14,907,662.66 24,350,000.00 1,037,402.76 11,055,066.32 13,155,000.00 37,505,000.00 11,542,271.02 Total Surplus (Deficit): 1,059,719.70$ 10,057,803.79$ -$ 431,568.75$ 1,573,933.54$ -$ -$ -$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended May 31, 2018 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 1,540,689.00$ 15,544,459.18$ 15,000,000.00$ -$ -$ -$ 15,000,000.00$ (544,459.18)$ 42 Meter Charges 747,308.21 8,205,535.40 8,845,000.00 - - - 8,845,000.00 639,464.60 43 Penalties 48,610.12 539,687.66 445,500.00 2,364.15 39,179.49 40,000.00 485,500.00 (93,367.15) 44 Wastewater System Charges - - - 396,016.43 4,268,059.97 4,545,000.00 4,545,000.00 276,940.03 45 Wastewater Treatment Charges - - - 785,729.56 7,974,930.54 7,900,000.00 7,900,000.00 (74,930.54) 46 Other Operating Revenue 81,917.43 430,907.75 131,500.00 284,861.37 294,086.37 70,000.00 201,500.00 (523,494.12) 47 Non Operating Revenue 2,337.01 239,674.90 125,000.00 - 47,541.93 22,000.00 147,000.00 (140,216.83) Revenue Total: 2,420,861.77 24,965,466.45 24,547,000.00 1,468,971.51 12,628,999.86 12,577,000.00 37,124,000.00 (470,466.31) Progra 1000 - Board of Directors 4,156.12 81,941.72 160,300.00 1,802.08 34,446.59 68,700.00 229,000.00 112,611.69 Progra 2000 - General Administration 80,430.20 950,909.58 975,200.00 32,891.07 363,403.70 391,800.00 1,367,000.00 52,686.72 Progra 2100 - Human Resources 29,679.55 496,889.16 631,000.00 12,719.85 203,073.52 261,000.00 892,000.00 192,037.32 Progra 2200 - Public Affairs 39,605.60 335,787.07 456,000.00 31,024.56 287,738.73 434,000.00 890,000.00 266,474.20 Progra 2300 - Conservation 48,914.90 345,601.77 575,000.00 - - - 575,000.00 229,398.23 Progra 3000 - Finance 43,307.18 695,004.96 900,200.00 18,559.85 267,036.85 355,800.00 1,256,000.00 293,958.19 Progra 3200 - Information Technology 42,684.23 534,992.21 682,100.00 18,293.18 225,972.64 288,900.00 971,000.00 210,035.15 Progra 3300 - Customer Service 99,460.41 1,107,950.85 1,390,100.00 29,315.98 349,241.90 420,900.00 1,811,000.00 353,807.25 Progra 3400 - Meter Service 17,958.56 294,386.40 407,000.00 - - - 407,000.00 112,613.60 Progra 4000 - Engineering 65,141.01 804,194.02 1,127,900.00 22,850.77 269,314.10 458,100.00 1,586,000.00 512,491.88 Progra 5000 - Water Production 295,589.69 3,467,291.70 4,139,000.00 - - - 4,139,000.00 671,708.30 Progra 5100 - Water Treatment 109,300.22 811,067.49 1,061,000.00 - - - 1,061,000.00 249,932.51 Progra 5200 - Water Quality 28,980.08 324,434.09 425,000.00 - - - 425,000.00 100,565.91 Progra 6000 - Field Maintenance Administration 21,281.68 254,651.35 224,000.00 1,668.59 29,334.38 22,000.00 246,000.00 (37,985.73) Progra 6100 - Water Maintenance 152,123.69 1,785,501.61 2,044,000.00 - (750.00) - 2,044,000.00 259,248.39 Progra 6200 - Wastewater Maintenance - - - 849,612.93 8,607,552.87 8,625,000.00 8,625,000.00 17,447.13 Progra 7000 - Facilities Maintenance 47,522.48 561,187.02 635,800.00 12,662.38 130,483.48 190,200.00 826,000.00 134,329.50 Progra 7100 - Fleet Maintenance 35,072.24 417,853.74 509,400.00 6,001.52 70,867.56 54,600.00 564,000.00 75,278.70 Progra 8000 - Capital 199,885.50 1,638,017.92 8,007,000.00 - 217,350.00 1,584,000.00 9,591,000.00 4,016,054.15 Total Surplus (Deficit):1,059,768.43$ 10,057,803.79$ -$ 431,568.75$ 1,573,933.54$ -$ -$ -$ Revenue and Expense Budget-to-Actual by Program Month Ended May 31, 2018 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 1,540,689.00$ 15,544,459.18$ 15,000,000.00$ -$ -$ -$ 15,000,000.00$ (544,459.18)$ 42 Meter Charges 747,308.21 8,205,535.40 8,845,000.00 - - - 8,845,000.00 639,464.60 43 Penalties 48,610.12 539,687.66 445,500.00 2,364.15 39,179.49 40,000.00 485,500.00 (93,367.15) 44 Wastewater System Charges - - - 396,016.43 4,268,059.97 4,545,000.00 4,545,000.00 276,940.03 45 Wastewater Treatment Charges - - - 785,729.56 7,974,930.54 7,900,000.00 7,900,000.00 (74,930.54) 46 Other Operating Revenue 81,917.43 430,907.75 131,500.00 284,861.37 294,086.37 70,000.00 201,500.00 (523,494.12) 47 Non Operating Revenue 2,337.01 239,674.90 125,000.00 - 47,541.93 22,000.00 147,000.00 (140,216.83) 48 Gain or Loss on Disposition - 5,201.56 - - 5,201.56 - - (10,403.12) 56 Benefits - - - - - - - - 68 Depreciation - - - - - - - Revenue Total: 2,420,861.77 24,965,466.45 24,547,000.00 1,468,971.51 12,628,999.86 12,577,000.00 37,124,000.00 (470,466.31) Program: 1000 - Board of Directors - - - 51 Labor -$ 46,305.00$ 73,500.00$ -$ 19,845.00$ 31,500.00$ 105,000.00$ 38,850.00$ 56 Benefits - 18,198.60 39,900.00 - 7,795.97 17,100.00 57,000.00 31,005.43 62 Materials and Supplies 48.73 606.81 700.00 20.88 260.06 300.00 1,000.00 133.13 63 Contract Services - 5,488.80 7,700.00 - 2,352.35 3,300.00 11,000.00 3,158.85 65 Professional Development 4,156.12 11,342.51 38,500.00 1,781.20 4,193.21 16,500.00 55,000.00 39,464.28 Program: 1000 - Board of Directors Total: 4,204.85 81,941.72 160,300.00 1,802.08 34,446.59 68,700.00 229,000.00 112,611.69 Program: 2000 - General Administration - - - 51 Labor 23,306.21 276,236.09 343,700.00 9,988.36 118,283.46 147,300.00 491,000.00 96,480.45 53 Overtime 104.62 1,510.12 - 44.83 647.21 - - (2,157.33) 56 Benefits 9,903.86 224,753.55 232,500.00 2,665.51 51,677.14 73,500.00 306,000.00 29,569.31 62 Materials and Supplies 399.41 3,059.40 5,600.00 171.18 1,311.22 2,400.00 8,000.00 3,629.38 63 Contract Services 43,820.00 388,456.54 312,900.00 18,780.00 167,064.26 134,100.00 447,000.00 (108,520.80) 64 Utilities 171.30 1,990.42 2,100.00 73.41 890.32 900.00 3,000.00 119.26 65 Professional Development 2,724.80 54,903.46 78,400.00 1,167.78 23,530.09 33,600.00 112,000.00 33,566.45 Program: 2000 - General Administration Total: 80,430.20 950,909.58 975,200.00 32,891.07 363,403.70 391,800.00 1,367,000.00 52,686.72 Program: 2100 - Human Resources - - - - 51 Labor 10,801.28 121,698.84 147,700.00 4,629.12 52,156.74 63,300.00 211,000.00 37,144.42 52 Temporary Labor - 1,814.40 8,400.00 - 777.60 3,600.00 12,000.00 9,408.00 53 Overtime 45.78 937.07 2,100.00 19.62 401.60 900.00 3,000.00 1,661.33 56 Benefits 3,566.99 82,455.52 92,000.00 1,528.74 25,459.03 30,000.00 122,000.00 14,085.45 62 Materials and Supplies 119.79 1,430.44 14,000.00 51.34 613.05 6,000.00 20,000.00 17,956.51 63 Contract Services 7,209.90 48,533.14 79,800.00 3,089.96 20,799.94 34,200.00 114,000.00 44,666.92 64 Utilities 26.61 378.36 700.00 11.40 162.10 300.00 1,000.00 459.54 65 Professional Development 2,275.94 21,642.85 27,300.00 975.40 9,275.50 11,700.00 39,000.00 8,081.65 67 Other 5,633.26 217,998.54 259,000.00 2,414.27 93,427.96 111,000.00 370,000.00 58,573.50 Program: 2100 - Human Resources Total: 29,679.55 496,889.16 631,000.00 12,719.85 203,073.52 261,000.00 892,000.00 192,037.32 Month Ended May 31, 2018 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Page 4 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2018 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 2200 - Public Affairs - - - - 51 Labor 17,017.20 144,429.22 189,000.00 10,857.20 128,145.29 189,000.00 378,000.00 105,425.49 52 Temporary Labor - - - - - - - - 53 Overtime 506.65 3,039.82 3,500.00 502.63 3,035.70 3,500.00 7,000.00 924.48 56 Benefits 3,691.86 75,247.22 91,000.00 2,649.77 50,534.23 69,000.00 160,000.00 34,218.55 62 Materials and Supplies 4,756.89 16,051.02 38,500.00 4,522.34 16,399.61 38,500.00 77,000.00 44,549.37 63 Contract Services 11,447.35 82,088.13 103,000.00 10,277.54 74,887.82 103,000.00 206,000.00 49,024.05 64 Utilities 91.21 6,450.46 17,500.00 120.64 6,479.86 17,500.00 35,000.00 22,069.68 65 Professional Development 2,094.44 8,481.20 13,500.00 2,094.44 8,256.22 13,500.00 27,000.00 10,262.58 Program: 2200 - Public Affairs Total: 39,605.60 335,787.07 456,000.00 31,024.56 287,738.73 434,000.00 890,000.00 266,474.20 Program: 2300 - Conservation - - - - 51 Labor 9,073.44 93,171.49 98,000.00 - - - 98,000.00 4,828.51 52 Temporary Labor - - - - - - - - 53 Overtime 620.88 947.66 8,000.00 - - - 8,000.00 7,052.34 56 Benefits 2,337.48 35,841.00 32,000.00 - - - 32,000.00 (3,841.00) 62 Materials and Supplies 27,848.69 138,017.79 223,000.00 - - - 223,000.00 84,982.21 63 Contract Services 8,712.41 74,669.54 187,000.00 - - - 187,000.00 112,330.46 64 Utilities 322.00 943.29 21,000.00 - - - 21,000.00 20,056.71 65 Professional Development - 2,011.00 6,000.00 - - - 6,000.00 3,989.00 Program: 2300 - Conservation Total: 48,914.90 345,601.77 575,000.00 - - - 575,000.00 229,398.23 Program: 3000 - Finance - - - - 51 Labor 32,296.86 371,616.34 478,100.00 13,841.40 159,082.85 204,900.00 683,000.00 152,300.81 52 Temporary Labor - - - - - - - - 53 Overtime - 2,816.70 7,000.00 - 1,207.10 3,000.00 10,000.00 5,976.20 56 Benefits 10,535.24 235,063.09 269,900.00 4,514.87 71,193.92 86,100.00 356,000.00 49,742.99 62 Materials and Supplies 258.36 3,617.74 7,700.00 110.73 1,550.48 3,300.00 11,000.00 5,831.78 63 Contract Services 40.64 70,515.65 116,200.00 17.39 29,414.87 49,800.00 166,000.00 66,069.48 64 Utilities 108.92 1,345.83 2,800.00 46.68 576.78 1,200.00 4,000.00 2,077.39 65 Professional Development 67.16 9,358.61 17,500.00 28.78 4,010.85 7,500.00 25,000.00 11,630.54 67 Other - 671.00 1,000.00 - - - 1,000.00 329.00 Program: 3000 - Finance Total: 43,307.18 695,004.96 900,200.00 18,559.85 267,036.85 355,800.00 1,256,000.00 293,958.19 Program: 3200 - Information Technology - - - - 51 Labor 14,232.32 178,620.05 219,100.00 6,099.57 76,551.43 93,900.00 313,000.00 57,828.52 52 Temporary Labor - - - - - - - - 53 Overtime - - - - - - - - 56 Benefits 4,519.58 82,070.33 98,300.00 1,936.88 31,863.23 38,700.00 137,000.00 23,066.44 62 Materials and Supplies 132.30 46,300.94 25,200.00 56.70 19,843.26 10,800.00 36,000.00 (30,144.20) 63 Contract Services 19,156.09 211,699.71 323,400.00 8,209.76 90,728.49 138,600.00 462,000.00 159,571.80 64 Utilities 398.20 2,574.86 4,200.00 170.66 1,103.50 1,800.00 6,000.00 2,321.64 65 Professional Development 4,245.74 13,726.32 11,900.00 1,819.61 5,882.73 5,100.00 17,000.00 (2,609.05) Program: 3200 - Information Technology Total: 42,684.23 534,992.21 682,100.00 18,293.18 225,972.64 288,900.00 971,000.00 210,035.15 Page 5 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2018 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 3300 - Customer Service - - - - 51 Labor 23,052.97 266,593.81 330,400.00 9,879.81 121,453.50 141,600.00 472,000.00 83,952.69 52 Temporary Labor - - 2,100.00 - - 900.00 3,000.00 3,000.00 53 Overtime 594.77 3,386.92 3,500.00 254.90 1,459.37 1,500.00 5,000.00 153.71 56 Benefits 10,335.70 206,558.70 216,400.00 4,429.32 72,272.79 72,600.00 289,000.00 10,168.51 62 Materials and Supplies 142.84 4,547.41 8,400.00 61.21 1,948.88 3,600.00 12,000.00 5,503.71 63 Contract Services 57,368.43 542,348.41 706,900.00 11,338.54 117,804.54 149,100.00 856,000.00 195,847.05 64 Utilities 7,430.90 77,338.64 109,900.00 3,184.68 33,145.12 47,100.00 157,000.00 46,516.24 65 Professional Development 432.13 3,046.75 12,500.00 167.52 1,161.80 4,500.00 17,000.00 12,791.45 67 Other 102.67 4,130.21 - - (4.10) - - (4,126.11) Program: 3300 - Customer Service Total: 99,460.41 1,107,950.85 1,390,100.00 29,315.98 349,241.90 420,900.00 1,811,000.00 353,807.25 Program: 3400 - Meter Service - - - - 51 Labor 12,379.59 172,374.75 228,000.00 - - - 228,000.00 55,625.25 53 Overtime 262.62 4,301.14 20,000.00 - - - 20,000.00 15,698.86 56 Benefits 4,908.94 110,778.23 142,000.00 - - - 142,000.00 31,221.77 62 Materials and Supplies 118.85 1,631.57 4,000.00 - - - 4,000.00 2,368.43 63 Contract Services 183.52 4,523.83 11,000.00 - - - 11,000.00 6,476.17 64 Utilities 105.04 776.88 2,000.00 - - - 2,000.00 1,223.12 65 Professional Development - - - - - - - - Program: 3400 - Meter Service Total: 17,958.56 294,386.40 407,000.00 - - - 407,000.00 112,613.60 Program: 4000 - Engineering - - - - 51 Labor 38,518.64 390,560.89 498,400.00 16,507.96 157,904.59 213,600.00 712,000.00 163,534.52 52 Temporary Labor - - - - - - - - 53 Overtime 73.25 841.67 1,400.00 31.39 360.67 600.00 2,000.00 797.66 56 Benefits 10,254.14 246,757.97 304,000.00 4,390.51 80,323.75 105,000.00 409,000.00 81,918.28 62 Materials and Supplies 200.51 4,091.65 16,800.00 10.54 500.88 7,200.00 24,000.00 19,407.47 63 Contract Services 1,430.61 92,460.26 200,200.00 460.51 13,469.06 85,800.00 286,000.00 180,070.68 64 Utilities 14,032.16 63,023.62 86,100.00 1,205.36 14,599.23 36,900.00 123,000.00 45,377.15 65 Professional Development 631.70 6,457.96 21,000.00 244.50 2,155.92 9,000.00 30,000.00 21,386.12 Program: 4000 - Engineering Surplus Total: 65,141.01 804,194.02 1,127,900.00 22,850.77 269,314.10 458,100.00 1,586,000.00 512,491.88 Program: 5000 - Water Production - - - - 51 Labor 48,404.33 513,889.86 670,000.00 - - - 670,000.00 156,110.14 53 Overtime 1,846.25 34,441.43 36,000.00 - - - 36,000.00 1,558.57 54 Standby 1,120.00 12,760.00 20,000.00 - - - 20,000.00 7,240.00 56 Benefits 14,116.45 303,494.90 337,000.00 - - - 337,000.00 33,505.10 61 Water Supply 800.00 606,075.43 801,000.00 - - - 801,000.00 194,924.57 62 Materials and Supplies 46,887.12 209,375.73 279,000.00 - - - 279,000.00 69,624.27 63 Contract Services 68,115.72 363,280.66 367,000.00 - - - 367,000.00 3,719.34 64 Utilities 113,944.82 1,416,619.97 1,614,000.00 - - - 1,614,000.00 197,380.03 65 Professional Development 355.00 7,353.72 15,000.00 - - - 15,000.00 7,646.28 Program: 5000 - Water Production Total: 295,589.69 3,467,291.70 4,139,000.00 - - - 4,139,000.00 671,708.30 Page 6 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2018 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 5100 - Water Treatment - - - - 51 Labor 16,854.44 190,241.12 237,000.00 - - - 237,000.00 46,758.88 53 Overtime 3,535.98 22,608.02 18,000.00 - - - 18,000.00 (4,608.02) 56 Benefits 5,490.73 107,762.63 115,000.00 - - - 115,000.00 7,237.37 62 Materials and Supplies 24,755.96 97,475.60 165,000.00 - - - 165,000.00 67,524.40 63 Contract Services 38,287.07 277,489.57 326,000.00 - - - 326,000.00 48,510.43 64 Utilities 20,376.04 115,490.55 200,000.00 - - - 200,000.00 84,509.45 Program: 5100 - Water Treatment Total: 109,300.22 811,067.49 1,061,000.00 - - - 1,061,000.00 249,932.51 Program: 5200 - Water Quality - - - - 51 Labor 12,761.24 143,437.29 176,000.00 - - - 176,000.00 32,562.71 53 Overtime 378.45 8,054.49 15,000.00 - - - 15,000.00 6,945.51 56 Benefits 3,761.11 72,829.92 86,000.00 - - - 86,000.00 13,170.08 62 Materials and Supplies 2,164.50 18,147.74 18,000.00 - - - 18,000.00 (147.74) 63 Contract Services 9,914.78 80,948.43 120,000.00 - - - 120,000.00 39,051.57 64 Utilities - 874.29 2,000.00 - - - 2,000.00 1,125.71 65 Professional Development - 141.93 8,000.00 - - - 8,000.00 7,858.07 Program: 5200 - Water Quality Total: 28,980.08 324,434.09 425,000.00 - - - 425,000.00 100,565.91 Program: 6000 - Field Maintenance Administration - - - - 51 Labor 12,091.25 118,798.63 102,600.00 811.07 13,618.29 11,400.00 114,000.00 (18,416.92) 52 Temporary Labor - - - - - - - - 53 Overtime 1,257.90 16,986.33 15,000.00 - 1,672.76 - 15,000.00 (3,659.09) 54 Standby 1,200.00 14,566.59 18,000.00 280.00 5,040.00 2,000.00 20,000.00 393.41 56 Benefits 4,211.26 62,352.18 51,500.00 337.76 6,650.82 4,500.00 56,000.00 (13,003.00) 62 Materials and Supplies 113.44 14,359.90 2,700.00 - 11.36 300.00 3,000.00 (11,371.26) 63 Contract Services - - - - - - - - 64 Utilities 1,226.33 13,319.02 18,900.00 136.26 1,479.88 2,100.00 21,000.00 6,201.10 65 Professional Development 1,181.50 14,268.70 15,300.00 103.50 861.27 1,700.00 17,000.00 1,870.03 Program: 6000 - Field Maintenance Administration Total: 21,281.68 254,651.35 224,000.00 1,668.59 29,334.38 22,000.00 246,000.00 (37,985.73) Program: 6100 - Water Maintenance - - - - 51 Labor 50,992.52 579,107.65 784,000.00 - (750.00) - 784,000.00 205,642.35 53 Overtime 11,187.59 125,821.21 105,000.00 - - - 105,000.00 (20,821.21) 56 Benefits 24,725.32 423,052.80 485,000.00 - - - 485,000.00 61,947.20 62 Materials and Supplies 34,318.06 320,061.72 221,000.00 - - - 221,000.00 (99,061.72) 63 Contract Services 30,900.20 303,403.71 449,000.00 - - - 449,000.00 145,596.29 64 Utilities - 34,054.52 - - - - - (34,054.52) Program: 6100 - Water Maintenance Total: 152,123.69 1,785,501.61 2,044,000.00 - (750.00) - 2,044,000.00 259,248.39 Program: 6200 - Wastewater Maintenance - - - - 51 Labor - - - 20,522.00 219,623.84 280,000.00 280,000.00 60,376.16 53 Overtime - - - - 32,739.93 35,000.00 35,000.00 2,260.07 56 Benefits - - - 7,858.73 122,326.74 144,000.00 144,000.00 21,673.26 62 Materials and Supplies - - - 6,231.06 32,678.63 35,000.00 35,000.00 2,321.37 Wastewater Treatment - - - 785,729.56 7,974,930.54 7,610,000.00 7,610,000.00 (364,930.54) 63 Contract Services - - - 29,271.58 225,253.19 521,000.00 521,000.00 295,746.81 Program: 6200 - Wastewater Maintenance Total:- - - 849,612.93 8,607,552.87 8,625,000.00 8,625,000.00 17,447.13 Page 7 of 8 AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended May 31, 2018 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDE Program: 7000 - Facilities Maintenance - - - - 51 Labor 4,974.20 59,958.80 67,900.00 2,131.80 20,140.03 29,100.00 97,000.00 16,901.17 53 Overtime 491.02 9,863.79 17,500.00 210.43 3,294.70 7,500.00 25,000.00 11,841.51 56 Benefits 1,890.49 39,315.65 40,800.00 810.20 10,572.04 13,200.00 54,000.00 4,112.31 62 Materials and Supplies 2,913.60 31,303.42 33,900.00 1,195.12 9,771.94 8,100.00 42,000.00 924.64 63 Contract Services 31,551.37 337,729.64 316,500.00 5,923.26 51,502.25 70,500.00 387,000.00 (2,231.89) 64 Utilities 5,701.80 83,015.72 159,200.00 2,391.57 35,117.52 61,800.00 221,000.00 102,866.76 65 Professional Development - - - - 85.00 - - (85.00) Program: 7000 - Facilities Maintenance Total: 47,522.48 561,187.02 635,800.00 12,662.38 130,483.48 190,200.00 826,000.00 134,329.50 - - Program: 7100 - Fleet Maintenance - - - - 51 Labor 10,769.26 121,188.45 147,600.00 1,196.56 13,465.15 16,400.00 164,000.00 29,346.40 53 Overtime 258.66 1,228.72 2,700.00 28.74 136.53 300.00 3,000.00 1,634.75 56 Benefits 4,152.47 80,154.48 87,100.00 461.27 7,108.76 7,900.00 95,000.00 7,736.76 62 Materials and Supplies 7,024.75 48,534.63 56,700.00 1,280.55 17,600.05 6,300.00 63,000.00 (3,134.68) 63 Contract Services 3,548.94 79,532.87 96,500.00 1,999.05 22,866.54 10,500.00 107,000.00 4,600.59 64 Utilities 9,318.16 85,610.10 113,400.00 1,035.35 9,512.25 12,600.00 126,000.00 30,877.65 65 Professional Development - 1,604.49 5,400.00 - 178.28 600.00 6,000.00 4,217.23 Program: 7100 - Fleet Maintenance Total: 35,072.24 417,853.74 509,400.00 6,001.52 70,867.56 54,600.00 564,000.00 75,278.70 - - Program: 8000 - Capital - - - 71 -Debt Service - 3,712,146.92 4,002,000.00 - 312,350.00 313,000.00 4,315,000.00 290,503.08 81 -Capital Improvement 153,056.35 441,409.43 3,525,000.00 50,693.51 806,336.20 1,140,000.00 4,665,000.00 3,417,254.37 82 -Capital Outlay 46,829.15 257,840.90 480,000.00 6,571.58 44,862.40 131,000.00 611,000.00 308,296.70 83 -Accounting Income Add back (199,885.50) (2,773,379.33) - (57,265.09) (946,198.60) - - 3,719,577.93 Program: 8000 - Capital Total: - 1,638,017.92 8,007,000.00 - 217,350.00 1,584,000.00 9,591,000.00 7,735,632.08 Total Surplus (Deficit): 1,259,605.20$ 10,057,803.79$ -$ 431,568.75$ 1,573,933.54$ -$ -$ -$ Page 8 of 8 B O AR D AGE N D A S TAF F R E P ORT Agend a Item #3.c . Meeting Date: June 27, 2018 C ons ent Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: May 2018 Dis b urs ements : Acc ounts payab le d is b urs ements for the p erio d inc lude chec k numb ers 252181 through 252363, b ank drafts, and AC H P ayments in the amount of $2,157,179.95 and $379,200.70 fo r payroll. R E C O MME N D AT IO N: S taff rec ommend s that the Board o f Directo rs review and approve the Dis tric t’s expens e d is b urs ements for the period May 1, 2018 through May 31, 2018 in the amo unt of $2,536,380.65. B AC KGR O UN D / AN ALYS IS : In the continued effo rt to b e fis cally trans p arent, the p ayment register fo r s upplies , materials , services , and p ayroll for May 2018 is attac hed for review and ap p ro val. T his p ro ces s provides the Bo ard and the p ublic an o p p o rtunity to review the exp enses of the Dis tric t. Acc o unts P ayable is p ro cess ed weekly, while p ayroll is p ro ces s ed bi-weekly. Info rmation to justify eac h expenditure is available thro ugh the F inanc e Department. Acc o unts payab le d is b urs ements for the p erio d inc lude c hec k numbers 252181 thro ugh 252363, bank drafts , and AC H P ayments in the amount of $2,157,179.95 and $379,200.70 for payroll. S ignific ant expenses greater than o r equal to $50,000 are further exp lained below: AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Brian Tomp kins C hief F inancial O ffic er R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the F inanc e Dep artment. F IS C AL IMPAC T S ufficient funds have b een b udgeted in the adopted F Y 2017-18 Bud get. ATTACH M E N TS: Description Type May 20 18 P ayment Register Backup Material PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/2/2018 252181 Carla Anguiano 111.03 5/2/2018 252182 ANTONIO GUTIERREZ JR 57.14 5/2/2018 252183 DAWN M SMITH 71.29 5/2/2018 252184 NAOMI STEVENSON 13.75 5/2/2018 252185 BARBARA NONNEMACHER 63.59 5/2/2018 252186 CRYSTAL BOND 77.68 5/2/2018 252187 CAYLA LEWIS 77.72 5/2/2018 252188 MICHELLE M SCHUBERT 64.87 5/2/2018 252189 JAMIE BLAND 33.20 5/2/2018 252190 WATER STREET LAND LLC 101.19 5/2/2018 252191 WATER STREET LAND LLC 130.88 5/2/2018 252192 WATER STREET LAND LLC 115.84 5/2/2018 252193 WATER STREET LAND LLC 115.89 5/2/2018 252194 WATER STREET LAND LLC 69.45 5/2/2018 252195 WATER STREET LAND LLC 101.28 5/2/2018 252196 ADP SCREENING 96.21 5/2/2018 252197 AMERICAN PAYROLL ASSOCIATION 219.00 5/2/2018 252198 ANTHESIS (FORMERLY POMONA VALLEY WORKSHOP) 1,059.00 5/2/2018 252199 ASBCSD 80.00 5/2/2018 252200 AT&T 416.74 5/2/2018 252201 AUTO UPHOLSTERY INC. 254.12 5/2/2018 252202 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 1,173.69 5/2/2018 252203 CHEM-TECH INTERNATIONAL INC 1,970.06 5/2/2018 252204 CINTAS CORPORATION (UNIFORMS) 3,578.51 5/2/2018 252206 CITY OF SAN BERNARDINO, PUBLIC WORKS DEPT 1,682.94 5/2/2018 252207 COLONIAL LIFE, PREMIUM 792.10 5/2/2018 252208 COMMERCIAL DOOR METAL SYSTEMS 11,680.00 5/2/2018 252209 COUNTY OF SAN BERNARDINO, DEPT OF PUBLIC WORKS 3,375.00 5/2/2018 252210 DANIELS TIRE SERVICE, INC 1,180.34 5/2/2018 252211 DENTAL HEALTH SERVICES 289.70 5/2/2018 252212 ERIC CHAMBERLIN 550.00 5/2/2018 252213 FAIRVIEW FORD SALES,INC 49.50 5/2/2018 252214 GARY YOUNG 480.29 5/2/2018 252215 HIGHLAND COMMUNITY NEWS 2,885.00 5/2/2018 252216 HUB CONSTRUCTION SPECIALTIES 475.39 5/2/2018 252217 K & L HARDWARE 71.86 5/2/2018 252218 MICHAEL REARDON 526.69 5/2/2018 252219 NAPA AUTO PARTS 290.06 5/2/2018 252220 NATIONAL AUTO FLEET GROUP, CHEVROLET OF WATSONVILLE 38,997.09 5/2/2018 252221 PATTON'S SALES CORP 117.93 5/2/2018 252222 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 150.00 5/2/2018 252223 SCN, SECURITY COMMUNICATION NETWORK, INC 89.50 5/2/2018 252224 SIMPSON SANDBLASTING & SPECIAL COATINGS, INC 37,590.00 PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 1 of 8 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/2/2018 252225 SO CAL GAS 289.33 5/2/2018 252226 SOUTH COAST A.Q.M.D. 257.22 5/2/2018 252227 SOUTHERN CALIFORNIA EDISON COMPANY 10,272.88 5/2/2018 252228 STAPLES BUSINESS ADVANTAGE 136.46 5/9/2018 252229 ONLINE RESOURCES CORPORATION 130.68 5/9/2018 252230 REYNA SANCHEZ 3,000.00 5/9/2018 252231 AIR CHIEF, INC. 440.21 5/9/2018 252232 ANTHESIS (FORMERLY POMONA VALLEY WORKSHOP) 1,167.00 5/9/2018 252233 BRANDEDITEMS, INC 2,744.69 5/9/2018 252234 BURRTEC WASTE (GROUP) INDUSTRIES, INC. 702.43 5/9/2018 252235 CHEM-TECH INTERNATIONAL INC 22,358.46 5/9/2018 252236 CINTAS CORPORATION (UNIFORMS) 651.93 5/9/2018 252238 CULLIGAN OF ONTARIO 94.50 5/9/2018 252239 DIB'S SAFE & LOCK SERVICE 118.54 5/9/2018 252240 EXPERIAN 209.44 5/9/2018 252241 EYE MED VISION CARE 1,254.00 5/9/2018 252242 FIRST CHOICE SERVICES 587.32 5/9/2018 252243 HATFIELD BUICK 54.37 5/9/2018 252244 IDEA HALL 13,009.81 5/9/2018 252245 INLAND WATER WORKS SUPPLY CO 3,631.19 5/9/2018 252246 PETTY CASH 331.56 5/9/2018 252247 SCN, SECURITY COMMUNICATION NETWORK, INC 374.50 5/9/2018 252248 SERGIO D. FIERRO 1,500.00 5/9/2018 252249 SHAWN T BURCH 4,325.00 5/9/2018 252250 SIEMENS INDUSTRY INC 5,199.34 5/9/2018 252251 SOUTHERN CALIFORNIA EDISON COMPANY 23.78 5/9/2018 252252 STAPLES BUSINESS ADVANTAGE 536.58 5/9/2018 252253 SUNSCREEN WINDOW TINTING 1,800.00 5/9/2018 252254 TYLER TECHNOLGIES 488.13 5/9/2018 252255 VALERO MARKETING & SUPPLY COMP 10,271.77 5/10/2018 252256 ANTHONY C ESTRADA 5,500.93 5/10/2018 252262 DEBORAH J MARSHALL 8.89 5/10/2018 252263 JOHN SUDDERTH 68.16 5/10/2018 252264 VERONICA RAMIREZ 58.07 5/10/2018 252265 STEVEN COOKE 50.12 5/10/2018 252266 C BASSLER 5.32 5/10/2018 252267 DEBRA J ESPIRITU 58.53 5/10/2018 252268 BARBARA J PERRY 26.28 5/10/2018 252269 ALL AMERICAN ASPHALT 1,760.86 5/10/2018 252270 ATWOOD FOUR RENTALS LLC 160.18 5/14/2018 252257 ANTHONY C ESTRADA 217.20 5/14/2018 252258 KARLA CAMPOS 150.00 5/14/2018 252259 Estuardo Cabrera 300.00 5/14/2018 252260 Anna Leichliter 500.00 5/14/2018 252261 Layce Palhegyi 40.00 5/15/2018 252271 BENITA A. AURE 200.00 5/15/2018 252272 CHRISTA OSUNA 119.98 5/15/2018 252273 WENDY BAYNHAM 350.00 5/16/2018 252274 ANTHESIS (FORMERLY POMONA VALLEY WORKSHOP) 1,251.00 5/16/2018 252275 AT&T 49.82 5/16/2018 252276 AUTO ZONE 6.89 5/16/2018 252277 BRIAN TOMPKINS 120.00 5/16/2018 252278 BURGESS MOVING & STORAGE 1,500.30 PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 2 of 8 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/16/2018 252279 CINTAS CORPORATION (UNIFORMS) 655.45 5/16/2018 252280 CITY OF SAN BERNARDINO, PUBLIC WORKS DEPT 9,536.66 5/16/2018 252281 DANIELS TIRE SERVICE, INC 1,230.16 5/16/2018 252282 EMPLOYMENT DEVELOPMENT DEPT. 522.00 5/16/2018 252283 FIRST CHOICE SERVICES 54.36 5/16/2018 252284 HACH COMPANY 1,406.37 5/16/2018 252285 HATFIELD BUICK 168.95 5/16/2018 252286 HIGHLAND COMMUNITY NEWS 1,943.28 5/16/2018 252287 HIGHLAND EQUIPMENT RENTAL 26.67 5/16/2018 252288 INLAND DESERT SECURITY & COMMUNICATIONS, INC 576.45 5/16/2018 252289 INLAND WATER WORKS SUPPLY CO 1,645.11 5/16/2018 252290 KELLY ASSOCIATES MANAGEMENT GROUP LLC 1,272.50 5/16/2018 252291 KONICA MINOLTA 669.89 5/16/2018 252292 NAPA AUTO PARTS 72.65 5/16/2018 252293 RONALD C. BRAATZ, LIFTOFF, LLC 204.00 5/16/2018 252294 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 27,738.98 5/16/2018 252295 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 649,167.55 5/16/2018 252296 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 18,227.20 5/16/2018 252297 SIMPSON SANDBLASTING & SPECIAL COATINGS, INC 23,200.00 5/16/2018 252298 SOUTH COAST A.Q.M.D. 257.22 5/16/2018 252299 SOUTHERN CALIFORNIA EDISON COMPANY 119,160.72 5/16/2018 252300 U.S. BANCORP SERVICE CENTER 22,223.54 5/16/2018 252305 SBCUSD 25,884.00 5/21/2018 252306 MACY DUKES 57.34 5/21/2018 252307 LR MUNOZ REAL ESTATE HOLDINGS LLC 122.11 5/21/2018 252308 NAJAT CHOWDHURY 88.24 5/21/2018 252309 AUTURO PEREZ HUERTA 46.48 5/21/2018 252310 JESUS AGUILAR II 54.06 5/21/2018 252311 WALMART STORES INC 81.93 5/21/2018 252312 MAGNUM PROPERTY INVESMENTS LLC 79.83 5/21/2018 252313 JESUS HINOJOS 43.03 5/21/2018 252314 RALPH PARTNER II, LLC 130.88 5/23/2018 252315 WOW PARTY RENTAL, INC. 169.00 5/24/2018 252316 AUTO UPHOLSTERY INC. 152.48 5/24/2018 252317 AUTO ZONE 10.54 5/24/2018 252318 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 848.77 5/24/2018 252319 CHEM-TECH INTERNATIONAL INC 1,238.48 5/24/2018 252320 CINTAS CORPORATION (UNIFORMS) 649.28 5/24/2018 252321 DENTAL HEALTH SERVICES 289.70 5/24/2018 252322 ERIC CHAMBERLIN 1,000.00 5/24/2018 252323 HIGHLAND COMMUNITY NEWS 29.95 5/24/2018 252324 HIGHLAND EQUIPMENT RENTAL 16.08 5/24/2018 252325 HUB CONSTRUCTION SPECIALTIES 438.21 5/24/2018 252326 INLAND WATER WORKS SUPPLY CO 1,121.00 5/24/2018 252327 INTERSTATE BATTERY 236.98 5/24/2018 252328 K & L HARDWARE 175.14 5/24/2018 252329 LA VIDA LAGUNA 1,000.00 5/24/2018 252330 METROPOLITAN LIFE INS CO 150.87 5/24/2018 252331 PATTON'S SALES CORP 76.59 5/24/2018 252332 PETTY CASH 300.00 5/24/2018 252333 PETTY CASH 288.00 5/24/2018 252334 PHOENIX LIFE INSURANCE COMPANY 66.74 5/24/2018 252335 POWER PLUS AUTO GLASS 194.75 PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 3 of 8 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/24/2018 252336 SO CAL GAS 14.30 5/24/2018 252337 SOUTH COAST A.Q.M.D. 128.61 5/24/2018 252338 SOUTHERN CALIF OCCUPATIONAL HEALTH SERVICES 505.00 5/24/2018 252339 STAPLES BUSINESS ADVANTAGE 1,142.46 5/24/2018 252340 SWRCB-DWOCP 80.00 5/24/2018 252341 YORK RISK SERVICES GROUP, INC. 1,122.33 5/30/2018 252342 L & C PROPERTIES, INC 139.80 5/30/2018 252343 ZETA L. BENTLEY 72.79 5/30/2018 252344 NAREN MISTRY 209.46 5/31/2018 252345 ALTERNATIVE HOSE INC 11.84 5/31/2018 252346 ANTHESIS (FORMERLY POMONA VALLEY WORKSHOP) 741.00 5/31/2018 252347 AT&T 270.26 5/31/2018 252348 AT&T 144.92 5/31/2018 252349 AUTO UPHOLSTERY INC. 77.60 5/31/2018 252350 BRADEN HEYWOOD DBA GENESIS INDUSTRIAL SUPPLY 2,228.85 5/31/2018 252351 CHEM-TECH INTERNATIONAL INC 25,006.00 5/31/2018 252352 CINDY BRASINGTON 125.00 5/31/2018 252353 COLONIAL LIFE, PREMIUM 792.10 5/31/2018 252354 COMPUTERIZED EMBROIDERY COMPANY, INC 1,508.50 5/31/2018 252355 EVERSOFT, INC 204.62 5/31/2018 252356 EXPERIAN 205.84 5/31/2018 252357 HOPKINS TECHNICAL PRODUCTS INC 10,375.97 5/31/2018 252358 JUDITH FOSDICK 125.00 5/31/2018 252359 K & L HARDWARE 34.31 5/31/2018 252360 NINYO & MOORE GEOTECHNICAL SCIENCES CONSULTANTS 1,271.50 5/31/2018 252361 READY EQUIPMENT RENTAL, INC. 245.16 5/31/2018 252362 SAFETY KLEEN CORP 214.23 5/31/2018 252363 SOUTHERN CALIFORNIA EDISON COMPANY 9,067.96 BANK DRAFTS 5/2/2018 DFT0002731 CALPERS/ MEDICAL 89,162.81 5/2/2018 DFT0002733 MERCHANT BANKCD 325.05 5/3/2018 DFT0002732 PayNearMe, Inc. 131.34 5/4/2018 DFT0002711 CA SDI Tax 2,255.00 5/4/2018 DFT0002712 CALPERS/ DEFERRED COMPENSATION 15,380.41 5/4/2018 DFT0002713 CALPERS/ RETIREMENT 61.38 5/4/2018 DFT0002714 CALPERS/ RETIREMENT 12,065.92 5/4/2018 DFT0002715 CALPERS/ RETIREMENT 3,884.53 5/4/2018 DFT0002716 CALPERS/ RETIREMENT 840.90 5/4/2018 DFT0002717 CALPERS/ RETIREMENT 3,811.21 5/4/2018 DFT0002718 CALPERS/ RETIREMENT 153.05 5/4/2018 DFT0002719 CALPERS/ RETIREMENT 18,372.85 5/4/2018 DFT0002720 CALPERS/ RETIREMENT 230.02 5/4/2018 DFT0002721 Federal Payroll Tax 25,066.95 5/4/2018 DFT0002722 Medicare 6,732.10 5/4/2018 DFT0002723 Social Security 31.24 5/4/2018 DFT0002724 State Payroll Tax 9,734.34 5/4/2018 DFT0002725 STATE DISBURSEMENT UNIT 2,442.47 5/9/2018 DFT0002736 PayNearMe, Inc. 175.12 5/10/2018 DFT0002734 CA SDI Tax 20.28 5/10/2018 DFT0002735 Medicare 58.80 5/10/2018 DFT0002737 FORTE, ACH DIRECT INC, ACH FEES 5,338.69 5/10/2018 DFT0002739 TRANSFIRST DISCOUNT 12,402.56 PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 4 of 8 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/11/2018 DFT0002738 PayNearMe, Inc. 109.45 5/14/2018 DFT0002741 PayNearMe, Inc. 63.68 5/15/2018 DFT0002747 STATE DISBURSEMENT UNIT 2,442.47 5/15/2018 DFT0002759 VERIFONE INC 22.00 5/16/2018 DFT0002748 CALPERS/ DEFERRED COMPENSATION 15,432.53 5/16/2018 DFT0002749 CALPERS/ RETIREMENT 63.24 5/16/2018 DFT0002750 CALPERS/ RETIREMENT 840.90 5/16/2018 DFT0002751 CALPERS/ RETIREMENT 230.02 5/16/2018 DFT0002752 CALPERS/ RETIREMENT 18,372.85 5/16/2018 DFT0002753 CALPERS/ RETIREMENT 153.05 5/16/2018 DFT0002754 CALPERS/ RETIREMENT 3,939.40 5/16/2018 DFT0002755 CALPERS/ RETIREMENT 12,065.92 5/16/2018 DFT0002756 CALPERS/ RETIREMENT 4,015.18 5/16/2018 DFT0002758 PayNearMe, Inc. 101.49 5/18/2018 DFT0002742 CA SDI Tax 2,179.71 5/18/2018 DFT0002743 Federal Payroll Tax 24,363.01 5/18/2018 DFT0002744 Medicare 6,637.86 5/18/2018 DFT0002745 Social Security 20.84 5/18/2018 DFT0002746 State Payroll Tax 9,339.39 5/22/2018 DFT0002760 CALPERS/ RETIREMENT 9.30 5/22/2018 DFT0002761 PayNearMe, Inc. 121.39 5/22/2018 DFT0002762 VERIFONE INC 22.00 5/23/2018 DFT0002763 CBB 2,811.81 5/23/2018 DFT0002764 PayNearMe, Inc. 23.88 5/23/2018 DFT0002765 VERIFONE INC 22.00 5/29/2018 DFT0002790 PayNearMe, Inc. 91.54 5/30/2018 DFT0002787 STATE DISBURSEMENT UNIT 2,442.47 5/30/2018 DFT0002789 CALPERS/ RETIREMENT 8,216.58 5/31/2018 DFT0002793 PayNearMe, Inc. 81.59 ACH PAYMENTS 5/2/2018 10004117 ADP, LLC 290.50 5/2/2018 10004118 ADS LLC 1,600.00 5/2/2018 10004119 ANTHONY'S IRRIGATION 23,165.00 5/2/2018 10004120 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 394.02 5/2/2018 10004121 BARRY'S SECURITY SERVICES, INC 1,641.95 5/2/2018 10004122 CALGON CARBON CORPORATION 269.38 5/2/2018 10004123 CLEARFLY COMMUNATIONS 1,340.27 5/2/2018 10004124 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 620.00 5/2/2018 10004125 DAN DIETZ 444.15 5/2/2018 10004126 DANGELO CO INC 734.46 5/2/2018 10004127 DAVID HERNANDEZ 422.05 5/2/2018 10004128 ED KING 128.52 5/2/2018 10004129 EVWD EMPLOYEES EVENTS ASSOC 329.50 5/2/2018 10004130 EXCEL LANDSCAPE, ICN 3,650.00 5/2/2018 10004131 FERGUSON ENTERPRISES, INC. 21,825.82 5/2/2018 10004132 FMB TRUCK OUTFITTERS, INC 139.97 5/2/2018 10004133 FSA Only/East Valley Water District 1,629.30 5/2/2018 10004134 GARY STURDIVAN 612.35 5/2/2018 10004135 GORDON GRANT 529.37 5/2/2018 10004136 HAAKER EQUIPMENT COMPANY 1,573.01 5/2/2018 10004137 INFOSEND, INC 3,151.69 5/2/2018 10004138 LANDS END INC 753.34 PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 5 of 8 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/2/2018 10004139 LEGEND PUMP AND WELL 37,653.00 5/2/2018 10004140 LESLIE'S POOL SUPPLIES, INC. 42.28 5/2/2018 10004141 LINCOLN NATIONAL LIFE INS CO. 2,150.93 5/2/2018 10004142 MANAGED HEALTH NETWORK 241.92 5/2/2018 10004143 MICHAEL HENDERSON 597.23 5/2/2018 10004144 MIKE J. ROQUET CONSTRUCTION INC 7,650.00 5/2/2018 10004145 MILLER SPATIAL SERVICES, LLC 8,860.00 5/2/2018 10004146 MINUTEMAN PRESS OF RANCHO CUCAMONGA 191.15 5/2/2018 10004147 NATIONAL CONSTRUCTION RENTALS 158.49 5/2/2018 10004148 PRINCIPAL FINANCIAL GROUP 8,861.46 5/2/2018 10004149 REBECCA KASTEN 700.00 5/2/2018 10004150 SCHUBERT ENTERPRISES INC 220.00 5/2/2018 10004151 THOMAS P ORTON 465.35 5/2/2018 10004152 VICTOR DELEON 61.20 5/2/2018 10004153 VULCAN MATERIALS COMPANY 1,285.12 5/9/2018 10004154 ADCOMP SYSTEMS 319.29 5/9/2018 10004155 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 135.02 5/9/2018 10004156 BARRY'S SECURITY SERVICES, INC 1,756.42 5/9/2018 10004157 BLAIS & ASSOCIATES INC 7,436.58 5/9/2018 10004158 CINTAS CORPORATION (FIRST AID) 125.02 5/9/2018 10004159 CLIFF'S PEST CONTROL 323.00 5/9/2018 10004160 CORE & MAIN LP 4,072.37 5/9/2018 10004161 CORELOGIC SOLUTIONS INC. 379.13 5/9/2018 10004162 DAMON RUSSELL 138.71 5/9/2018 10004163 DIGITAL NETWORKS GROUP, INC. 2,051.60 5/9/2018 10004164 EVWD EMPLOYEES EVENTS ASSOC 1,647.25 5/9/2018 10004165 EXCEL LANDSCAPE, ICN 8,550.00 5/9/2018 10004166 FERGUSON ENTERPRISES, INC. 456.00 5/9/2018 10004167 FRONTIER COMMUNICATIONS 49.71 5/9/2018 10004168 GERALD SIEVERS 100.04 5/9/2018 10004169 HAAKER EQUIPMENT COMPANY 1,066.73 5/9/2018 10004170 HIGHLAND AREA CHAMBER 400.00 5/9/2018 10004171 JC LAW FIRM 21,045.68 5/9/2018 10004172 JOSE MILLAN 240.00 5/9/2018 10004173 LEGEND PUMP AND WELL 503.00 5/9/2018 10004174 LESLIE'S POOL SUPPLIES, INC. 50.74 5/9/2018 10004175 MILLER SPATIAL SERVICES, LLC 4,040.00 5/9/2018 10004176 MINUTEMAN PRESS OF RANCHO CUCAMONGA 552.62 5/9/2018 10004177 P.A.D. PALM AUTO DETAIL 1,065.00 5/9/2018 10004178 PATRICK K. MILROY 170.09 5/9/2018 10004179 PLUMBERS DEPOT INC. 997.40 5/9/2018 10004180 S & J PLUMBING, INC. 11,999.96 5/9/2018 10004181 SAFETY COMPLIANCE COMPANY 200.00 5/9/2018 10004182 SEREYRITH PENG 6,640.00 5/9/2018 10004183 STEPHANIE MICHELE GUIDA 281.25 5/9/2018 10004184 STUBBIES PROMOTIONS INC 11,668.03 5/9/2018 10004185 THE QUINTANA CRUZ COMPANY, LLC 4,000.00 5/9/2018 10004186 THE WINNER INDUSTRIAL SUPPLY INC 4,104.51 5/9/2018 10004187 UNDERGROUND SERVICE ALERT 290.50 5/9/2018 10004188 VERIZON WIRELESS 3,961.32 5/9/2018 10004190 VISTA PAINTS 246.82 5/9/2018 10004191 VULCAN MATERIALS CO/ CALMAT CO 636.69 5/16/2018 10004192 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC. 9,400.00 PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 6 of 8 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/16/2018 10004193 ANDREW MATA 281.85 5/16/2018 10004194 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS LLC 263.24 5/16/2018 10004195 BARRY'S SECURITY SERVICES, INC 1,641.95 5/16/2018 10004196 CALIFORNIA FUELS & LUBRICANTS 2,516.00 5/16/2018 10004197 CALIFORNIA TOOL & WELDING SUPPLY 5,651.14 5/16/2018 10004198 CINTAS CORPORATION (FIRST AID) 214.82 5/16/2018 10004199 CLINICAL LAB OF S B 7,265.50 5/16/2018 10004200 EVWD EMPLOYEES EVENTS ASSOC 329.50 5/16/2018 10004201 FILARSKY & WATT LLP 3,854.17 5/16/2018 10004202 FMB TRUCK OUTFITTERS, INC 883.33 5/16/2018 10004203 FRONTIER COMMUNICATIONS 762.81 5/16/2018 10004204 FSA Only/East Valley Water District 1,629.30 5/16/2018 10004205 HAAKER EQUIPMENT COMPANY 615.63 5/16/2018 10004206 I.C.W.A. 250.00 5/16/2018 10004207 IMG/INLAND MEDIA GROUP, STEVE SWITZER 160.00 5/16/2018 10004208 INFOSEND, INC 31,214.64 5/16/2018 10004209 JC LAW FIRM 41,540.00 5/16/2018 10004210 KELLY MALLOY 2,941.63 5/16/2018 10004211 LEVERAGE INFORMATION SYSTEMS, INC. 2,833.95 5/16/2018 10004212 MCMASTER-CARR 250.79 5/16/2018 10004213 MERLIN JOHNSON CONSTRUCTION 28,955.06 5/16/2018 10004214 MICHAEL BAFFA 170.00 5/16/2018 10004215 MICHAEL HURST 185.00 5/16/2018 10004216 MINUTEMAN PRESS OF RANCHO CUCAMONGA 5,571.19 5/16/2018 10004217 NETWORK FLEET, INC 124.75 5/16/2018 10004218 POWERSTRIDE BATTERY CO. 101.41 5/16/2018 10004219 SHRED-IT US JV LLC 188.87 5/16/2018 10004220 USA BLUE BOOK 641.46 5/16/2018 10004221 VISTA PAINTS 218.83 5/16/2018 10004222 WORTHINGTON PARTNERS, LLC 10,000.00 5/16/2018 10004223 XC2 SOFTWARE, LLC 1,840.00 5/16/2018 10004224 DOCUSIGN, INC. 18,441.24 5/24/2018 10004225 ADP, LLC 196.80 5/24/2018 10004226 AIRGAS, USA LLC 370.94 5/24/2018 10004227 ASHOK K. DHINGRA, AKD CONSULTING 17,331.85 5/24/2018 10004228 BARRY'S SECURITY SERVICES, INC 1,626.69 5/24/2018 10004229 DANGELO CO INC 434.40 5/24/2018 10004230 DANIEL STRONG 80.00 5/24/2018 10004231 DIMENSION DATA NORTH AMERICA 12,087.73 5/24/2018 10004232 EZEQUIEL ELECTRIC, INC. 567.00 5/24/2018 10004233 FERGUSON ENTERPRISES, INC. 5,253.96 5/24/2018 10004234 FRONTIER COMMUNICATIONS 372.32 5/24/2018 10004235 JONATHAN PEEL 130.00 5/24/2018 10004236 JOSE MILLAN 2,600.00 5/24/2018 10004237 LEGEND PUMP AND WELL 24,516.00 5/24/2018 10004238 MCMASTER-CARR 862.33 5/24/2018 10004239 MIKE J. ROQUET CONSTRUCTION INC 86,533.00 5/24/2018 10004240 MINUTEMAN PRESS OF RANCHO CUCAMONGA 69.61 5/24/2018 10004241 MUSICK, PEELER & GARRETT LLP 3,503.50 5/24/2018 10004242 NEPTUNE TECHNOLOGY GROUP INC. 4,999.92 5/24/2018 10004243 OFFICIAL PAYMENTS CORP. 36.60 5/24/2018 10004244 SOLARWINDS, INC. 7,756.00 5/24/2018 10004245 STEPHANIE MICHELE GUIDA 187.50 PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 7 of 8 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 5/24/2018 10004246 TIM VITRANO 85.00 5/24/2018 10004247 USA BLUE BOOK 174.62 5/24/2018 10004248 VULCAN MATERIALS CO/ CALMAT CO 2,812.09 5/31/2018 10004249 ADS LLC 1,600.00 5/31/2018 10004250 BARRY'S SECURITY SERVICES, INC 691.90 5/31/2018 10004251 BEN JOSEPH ZERPA 249.99 5/31/2018 10004252 BLAIS & ASSOCIATES INC 5,043.42 5/31/2018 10004253 CALGON CARBON CORPORATION 269.38 5/31/2018 10004254 CALIFORNIA TOOL & WELDING SUPPLY 231.24 5/31/2018 10004255 CORE & MAIN LP 419.74 5/31/2018 10004256 EVWD EMPLOYEES EVENTS ASSOC 351.50 5/31/2018 10004257 EXCEL LANDSCAPE, ICN 2,357.12 5/31/2018 10004258 FERGUSON ENTERPRISES, INC. 14,061.38 5/31/2018 10004259 FRONTIER COMMUNICATIONS 54.54 5/31/2018 10004260 FSA Only/East Valley Water District 1,629.30 5/31/2018 10004261 INFOSEND, INC 13,388.96 5/31/2018 10004262 JOSE MILLAN 260.00 5/31/2018 10004263 LEGEND PUMP AND WELL 2,142.00 5/31/2018 10004264 LINCOLN NATIONAL LIFE INS CO. 2,165.93 5/31/2018 10004265 MCMASTER-CARR 118.85 5/31/2018 10004266 MILLER SPATIAL SERVICES, LLC 4,325.00 5/31/2018 10004267 MINUTEMAN PRESS OF RANCHO CUCAMONGA 2,167.51 5/31/2018 10004268 PATRICK K. MILROY 29.91 5/31/2018 10004269 PLUS 1 PERFORMANCE 19.05 5/31/2018 10004270 POWERSTRIDE BATTERY CO. 206.27 5/31/2018 10004271 PRINCIPAL FINANCIAL GROUP 8,771.71 5/31/2018 10004272 RAYMOND ROYBAL 280.79 5/31/2018 10004273 RICHARD BECERRA 1.73 5/31/2018 10004274 SITEONE LANDSCAPE SUPPLY , LLC 545.96 5/31/2018 10004275 STEVEN MC GEE 95.10 5/31/2018 10004276 VULCAN MATERIALS CO/ CALMAT CO 2,083.57 5/31/2018 10004277 WAXIE SANITARY SUPPLY 241.60 TOTAL 2,157,179.95$ PAYMENT REGISTER MAY 1, 2018 - MAY 31, 2018 Page 8 of 8 B O AR D AG E N D A S TAF F R E P O RT Agenda Item #4. Meeting Date: June 27, 2018 To: G overning Board Members F rom: G eneral Manager/C EO Subject: S terling Natural R esource C enter (S NR C ) O utreac h Update R E C OMME N D AT ION: T his item is for information only, no ac tion is requested at this time. B AC KG R OUN D / AN ALYS IS: S inc e 2014, the Dis tric t has b een c o nsidering the c o nstruc tion of a was tewater treatment fac ility. T hroughout this p ro cess there has been extens ive c o mmunity engagement effo rts to provid e o p p o rtunities to gather input from stakeholders . T he Dis tric t has been working c ooperatively with S an Bernard ino Valley Munic ip al Water District. T his effort has had a c ustomized outreac h program which was c onsistent with both agency's brand. O n June 20, 2018, the S an Bernardino C o unty Lo cal Agenc y F ormatio n C ommission (LAF C O ) unanimous ly approved the activatio n of the Dis tric t's was tewater treatment authority. T his ac tio n is resulintg in the transition of respons ibility for this projec t to Eas t Valley Water District. With this trans ition, an up d ated o utreach effo rt has b een develo p ed to c eleb rate the p ro ject progres s and educ ate the pub lic on was tewater treatment technology. Muc h like the "Northbound Train" theme us ed to celebrate the new headquarters fac ility, the District is comparing the c o llective efforts and up c oming s uc cesses of the S terling Natural R esource C enter thro ugh a mo untain climbing theme o f the "S terling Expedition: R eaching S ummits ". T his effort will rec o gnize the miles tones and informatio nal o p p o rtunities during the S NR C c onstruc tion over the next three years . AG E N C Y G O ALS AN D O B J E C T IVE S : G oal and O bjectives I I - Maintain a C ommitment to S ustainability, Transparency, and Acc ountability b) Utilize Effective Communication Methods d) P rovide Q uality Information to Enc ourage C ommunity Engagement F IS C AL IMPAC T T here is no fisc al impac t as s ociated with this item. ATTAC H M EN TS: Description Type SN R C Outreach Update P resentation Outreach Update June 27, 2018 Sterling Natural Resource Center CURRENT OUTREACH Channel Followers Facebook 1,852 Instagram 236 Twitter 527 2EAST VALLEY WATER DISTRICT •Community Events •Social Media •Promotional Items •Project Updates by Mail •Press Releases for Milestones TURNING A CORNER “Success is the sum of small efforts, repeated day in and day out.” -Robert Collier CAMPAIGN THEME: “STERLING EXPEDITION: REACHING SUMMITS” Every milestone conquered will offer its own set of challenges, ultimately leading to the best view, the completion of SNRC. The best views come from the hardest climbs. A trek up a mountain’s summit requires patience, mental strength, resilience and time. As the journey up continues, our expedition may be delayed due to uncontrollable circumstances. While every step gets us closer to the summit, it doesn’t make them easier to take. CELEBRATING MILESTONES CELEBRATING MILESTONES •Major Milestones •Significant points of progress throughout the process. •Minor Milestones •Smaller accomplishments to continue momentum. •Celebrations •Recap the path taken so far. •The theme of the celebration will be carried throughout each milestone. •The final celebration to include little pieces from all the previous celebrations. PRESERVING HISTORY TIME CAPSULE •Preserve and celebrate our community’s history. •An item or document that represents each milestone will be placed in the time capsule. •Approximately 20-25 milestones. •Time capsule to be included at SNRC to be opened at a later date. •Short videos to preserve history. June 27, 2018 Legislative Update •State Workshops •ACWA Meetings •Discussions with Elected 2E A S T V A L L E Y W A T E R D I S T R I C T Current Outreach Water Tax Service Disconnection Affordable Water Rates Long Term Conservation Items of Interest •Water Tax −Trailer Bill −SB 623 •Service Disconnection −SB 998 •Conservation −AB 1668 & SB 606 •Water Bonds −Prop 68 (SB 5) −Jerry Meral Bond •Primary Election Results 3E A S T V A L L E Y W A T E R D I S T R I C T B O AR D AGE N D A S TAF F R E P ORT Agenda Item #6. Meeting Date: June 27, 2018 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: C ons id er Adoptio n of F Y 2018-19 Bud get R E C O MME N D AT IO N: S taff rec o mmends that the Bo ard of Directo rs (Board ) ad o p t the p ro p o s ed F Y 2018-19 O p erating and C apital Budgets and authorize the setup o f a C apital R ep lacement R es erve F und with an initial trans fer of $3,000,000 from unrestricted res erves. B AC KGR O UN D / AN ALYS IS : T he F Y 2018-19 O p erating and C ap ital Bud gets have been developed to c o ntinue to pro vide high quality water d elivery and wastewater collec tion s ervic es to Dis tric t ratep ayers . In develo ping the fis c al plan fo r next year, s taff remained foc us ed o n key is s ues . At the s ame time, staff ens ured that exp end itures d irec tly correlate to Agenc y G oals and O bjectives. T he o p erating b udget is p res ented b y p ro gram, each having s tated goals and objec tives fo r the up c oming fis c al year that align with Agenc y G o als , and each ac c o mp anied b y funding reques ts to sup p o rt those o b jectives . T he C ap ital Bud get s p ecific ally identifies eq uipment s ched uled fo r replac ement or up grad e, and projec ts fro m the C apital Imp ro vement P ro gram (C I P ) d es ignated as high p riority d ue to age and c ond ition, o r having ins ufficient capacity to meet antic ip ated gro wth. Revenues: As dis cus s ed in the Bo ard wo rksho p o n May 16, 2018, total revenue projected fo r F Y 2018-19 is $37,848,000, a 3% increase over revenue p rojec ted for the p rio r year. F ac tors affec ting revenue p ro jectio ns inc lude: C o ns ervative estimates o f water c o ns umptio n b y c usto mers Inc reas e to Interest Inc o me d ue to p rojec ted market yield No rate inc rease ad o p ted for F Y 2018-19 P ro jected revenues are s ummarized in the c hart below: P ro jected revenues are s ummarized in the c hart below: Expenses: T he District ac counts for all o p erating expenses at the p ro gram level. Eac h pro gram is evaluated o n an annual basis to d etermine its effec tivenes s . As a res ult, s o me programs may b e red efined o r enhanc ed , in o rd er to ensure that the pro grams are run effectively and with a high level o f acc o untab ility. F Y 2018-19 p ro gram expens es are bud geted $28,675,000, a 6% inc reas e c o mpared to the p rio r fis c al year. Total program expenses are pres ented by c ost type b elow: Capital Outlay: T he C apital O utlay Budget is an effort to plan for the replac ement of vehic les and equip ment. T he objec tive is to s tand ardize the replac ement process in o rd er to c reate a managed s ystem of p urc has ing and fund ing c ap ital equip ment, thereby allowing the District to ac c urately p lan and bud get for future need s . T he c o s t o f ind ep endent studies enc o mpassing lo ng-term infras truc ture planning and cos t of s ervice rate s tud ies , are als o inc luded in C apital O utlay. T he F Y 2018-19 C ap ital O utlay Budget totals $1,106,000 and inc ludes a c omb inatio n of equip ment purchas es , inves tments in technolo gy, and planning s tudies as s ummarized in the tab le below: P roposed Capital Outlay Amount Vehicles $ 150,000 C omputer / P ho ne S ys tem Up grad es 133,000 P lanning S tudies 270,000 Ac q uis ition of Water C o mp any S hares 250,000 O ffice F urniture & Equip ment 20,000 Water Tank Mixers 161,000 Upgrad e S erver R m F ire S up p ression 40,000 Upgrad e HVAC at Various P lants 40,000 S ewer Lateral S nake / Lo cato r 12,000 Drone 30,000 Total C apital Outlay $ 1,106,000 Capital Improvement P rogram: T his year ’s propos ed C ap ital Imp ro vement P rogram bud get to tals $19,510,000, and foc us es on multip le key is s ues inc lud ing water quality, s ys tem maintenanc e, and water sup p ly p ro vided by the p ro posed S terling Natural R esourc e C enter (S NR C ). T he C I P budget is fully funded utilizing $3,605,000 fro m o p erating revenue, $500,000 from d evelo p er fees , $15,000,000 fro m G rants and Lo ans , and $405,000 fro m unres tric ted (enc umb ered ) res erves. A s ummary o f the C apital Imp ro vement P rogram b udget for 2018-19, by projec t type, is s hown in the fo llo wing table: Capital Improvement P rojects Amount AMI Meter R ep lac ement P rogram $ 1,000,000 New S torage R es ervoir 500,000 New Transmission Main 1,100,000 P lant 134 S ite Imp rovements 150,000 P lant 134 P roc es s I mprovements 150,000 P lant 134 Memb rane R eplac ement 405,000 P lant 101 Hyd ro Tank R ehabilitatio n 350,000 Water Main R ep lac ements 200,000 Was tewater Main R ehab ilitatio n 430,000 G eneral F ac ilities R ehab / R elocatio n 225,000 S NR C Water R ec yc ling P lant 15,000,000 Total C IP Expenditures $ 19,510,000 T he Mid -year bud get review c o nd uc ted in F ebruary o f each year will allo w the Dis tric t to measure ac tual revenue agains t revenue projectio ns and determine whether exc ess revenue, if any, are s ufficient to fund additio nal p ro jects . Debt S ervice: T he Dis tric t will pay debt s ervic e o n s ix debt ins truments in F Y 2018-19. Both water and wastewater revenues are p led ged as s ec urity fo r revenue b o nd s , while only water revenues are pledged for rep ayment o f exis ting lo ans. A preliminary c alculation bas ed o n b udget numb ers has resulted in F Y 2018-19 d eb t s ervic e c overage o f 283%, well in exc es s of the 120% required by b o nd d o cuments. Deb t s ervice p ayments sc heduled fo r F Y 2018-19 are s ho wn in the following table: Debt Issue Interest Rate F Y 2018-19 Debt S ervice 2010 R evenue Bo nds 3.95%$ 2,577,000 2013 R evenue Bo nds 4.52%585,000 DW R Lo an – Treatment P lant 0.00%244,000 DW R Lo an – As s essment Dis tricts 0.00%19,000 US Bank Loan 2.38%455,000 S B VMW D Lo an 0.78%478,000 Total $ 4,358,000 Capital Replacement Reserve F und: S taff is req ues ting authorization to es tablis h a C ap ital R ep lacement R es erve with an initial trans fer o f $3 million fro m water fund unres tric ted res erves (or Net P os ition). T he C ap ital R ep lacement R eserve would be us ed to financ e replacement p ro jec ts in the Dis tric t’s C ap ital Impro vement P lan and large purchas es o f replac ement equip ment. Ac cordingly, the propos ed F Y 2018-19 C ap ital Budget inc ludes the us e of these fund s to p ro cure and ins tall rep lacement treatment membranes at P lant 134 fo r $405,000. P rio r to a trans fer, the unrestricted res erve b alanc e is p ro jec ted to be $11.3 millio n at June 30, 2018. T he Dis tric t’s reserve po licy es tab lished a minimum unres tricted res erve target at 90 d ays o f o p erating exp enses, or $7.2 millio n, therefore, a transfer of $3 million to the R ep lacement R es erve wo uld leave unres tric ted reserves at a s uffic ient fund ing level o f $8.3 million. Conclusion: S taff has ded icated a s ignificant amount of time to the careful evaluation of revenue and p ro gram expend itures, to develo p a bud get that will p rovid e s uffic ient funding to meet the needs of the community, credito rs , and o ther stakeho ld ers. T hrougho ut the coming year, s taff will c lo s ely mo nito r revenues vers us p ro gram spend ing, and propos e adjus tments as nec es s ary to ens ure the Dis tric t’s fisc al s ustainability. AG E N C Y G O ALS AN D OB J E C T IVE S : G o al and O bjec tives I I - Maintain a C ommitment to S us tainab ility, Transparenc y, and Ac c o untability a) P rac tice Trans parent and Ac countab le F is cal Management R E VIE W B Y O T HE R S : T his agenda item has been reviewed by departments and the C o mmunity Advisory C ommis s io n. R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Brian Tomp kins C hief F inancial O ffic er F IS C AL IMPAC T T he F Y 2018-19 O perating Bud get is balanc ed with a projec ted c ontrib utio n of $104,000 to res erves . T he C apital Bud get is fully fund ed as presented. ATTACH M E N TS: Description Type FY 20 21 8-19 Draft Budget P resentation P resentation FY 20 18 -19 Draft Budget Backup Material FY 2018-19 OPERATING & CAPITAL BUDGETS June 27, 2018 DISTRICT-WIDE GOALS Assess the District’s ability to respond to an increase in development activity and implement action items as identified Address challenges and opportunities related to North Fork Water Company Develop a 5-year work program for Board consideration Create a financial plan to reduce long-term pension liabilities Research the requirements and procedures of creating a non-profit foundation for community enhancement efforts Complete the necessary steps to continue advancement of the SNRC 2 FINANCIALS 4 DISTRICT-WIDE REVENUES Water Sales $15,100,000 Meter Charges $8,960,000 Wastewater Collection $4,630,000 Wastewater Treatment $8,233,000 Other $925,000 Water Sales Meter Charges Wastewater Collection Wastewater Treatment Other FISCAL YEAR 2018-19 TOTAL REVENUES $37,848,000 ________________________ REVENUE CONSIDERATIONS •No Rate Increases •Incorporated Historical Water Consumption Usage •Increased Interest Income to Reflect Projected Market Returns 5 DISTRICT-WIDE EXPENSES FISCAL YEAR 2018-19 TOTAL EXPENSES $37,848,000 ________________________ EXPENSE CONSIDERATIONS •Enhanced Capital Improvement Program •Labor & Benefits Employment Services $9,538,000 Water Cost $1,067,000 Materials / Contract Services $5,656,000 Other Operating $2,154,000 Wastewater Treatment $8,233,000 Power Cost $1,820,000 Professional Development $207,000 Debt Service $4,358,000 Capital Expenditures $4,711,000 Reserves $104,000 Program $16,507,000 Debt Service $4,046,000 Reserve Contribution $74,000 Capital $4,106,000 EXPENDITURES / OTHER USES 6 WATER FUND Water Sales $15,100,000 Meter Charges $8,960,000 Other Charges $673,000 SOURCE OF REVENUE FISCAL YEAR 2018-19 WATER BUDGET $24,733,000 ____________________ BUDGET HIGHLIGHTS •Groundwater Council •AMI •Plant 134 Other Program $3,935,000 Wastewater Treatment $8,233,000 Debt Service $312,000 Reserve Contribution $30,000 Capital $605,000 EXPENDITURES / OTHER USES 7 WASTEWATER FUND FISCAL YEAR 2018-19 WASTEWATER BUDGET $13,115,000 ____________________ BUDGET HIGHLIGHTS •Sterling Natural Resource Center •Public Outreach Wastewater Collection $4,630,000 Wastewater Treatment $8,233,000 Other Charges $252,000 SOURCE OF REVENUE 8 PROGRAM EXPENDITURE SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Colu mn1 PRIOR YEAR % INCREASE Governing Board $ 235,900 $ 101,100 $ 337,000 $ 229,000 47% General Administration 880,600 377,400 1,258,000 1,201,000 5% HR/Risk Management 693,000 297,000 990,000 845,000 17% Public Affairs 571,000 571,000 1,142,000 828,000 38% Conservation 593,000 - 593,000 575,000 3% Finance 792,000 339,000 1,131,000 1,182,000 -4% Information Technology 706,300 302,700 1,009,000 963,000 5% Customer Service 1,357,900 428,100 1,786,000 1,749,000 2% Meter Services 283,000 - 283,000 397,000 -29% Engineering 1,064,700 456,300 1,521,000 1,527,000 0% 9 PROGRAM EXPENDITURE SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Colu mn1 PRIOR YEAR % INCREASE Water Production Administration 494,000 - 494,000 469,000 5% Source of Supply 2,791,000 - 2,791,000 2,654,000 5% Pumps & Boosters 727,000 - 727,000 726,000 0% Transmission & Distribution 366,000 - 366,000 223,000 64% Water Treatment 848,000 - 848,000 890,000 -5% Water Quality 434,000 - 434,000 410,000 6% Water Maintenance 2,204,000 - 2,204,000 2,021,000 9% Maintenance Administration 310,500 34,500 345,000 220,000 57% Wastewater Maintenance - 763,000 763,000 693,000 10% Wastewater Treatment - 8,233,000 8,233,000 7,900,000 4% Facilities Maintenance 742,000 219,000 961,000 776,000 24% Fleet Maintenance 413,100 45,900 459,000 516,000 -11% Total $16,507,000 $ 12,168,000 $28,675,000 $26,994,000 6% 2010 Bonds $2,577,000 2013 Bonds $585,000 SRF Loans $263,000 US Bank Loan $455,000 SBVMWD Loan $478,000 FY 2018 -19 PAYMENTS -$4,358,000 10 DEBT SERVICE Debt Proceeds Used For Plant 134 Treatment Upgrade Plant 134 Hydro Electric Plant Administration/ Operations Facility Honeywell Energy Projects 4 Million Gallon Underground Tank 11 OPERATING BUDGET SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Revenue Sales & Services $ 24,060,000 $ 12,863,000 $ 36,923,000 Other Charges 473,000 192,000 665,000 Interest & Miscellaneous Revenue 200,000 60,000 260,000 Total Revenue $ 24,733,000 $ 13,115,000 $ 37,848,000 Expenditures Program Expenses $ 16,507,000 $ 12,168,000 $ 28,675,000 Debt Service 4,046,000 312,000 4,358,000 Capital Expenditures 4,106,000 605,000 4,711,000 Reserve Contributions 74,000 30,000 104,000 Total Expenditures $ 24,733,000 $ 13,115,000 $ 37,848,000 CAPITAL BUDGET 13 CAPITAL OUTLAY One-Time Purchases •Equipment •Machinery •Furniture •Fixtures •Software •Vehicles DESCRIPTION AMOUNT North Fork Water Company Shares $ 250,000 SCADA Master Plan 150,000 Water/Wastewater Rate Studies 120,000 Hardware & Software Upgrades 133,000 Drone 30,000 Filing Systems 20,000 Fire Suppression - Data Center 40,000 Sewer Lateral Snake & Locator 12,000 Chlorine Analyzers / Tank Mixers 161,000 HVAC Upgrades - Plants 24, 99, 108, 129 40,000 4 Service Trucks 150,000 Total Capital Outlay Costs $ 1,106,000 14 CAPITAL IMPROVEMENT PROJECTS •Minimum Useful Life of 2 Years •Value ≥ $5,000 DESCRIPTION AMOUNT AMI Meter Replacement Program $ 1,000,000 Water Storage 850,000 Treatment Plant Modifications / Replacements 705,000 Water / Wastewater Pipelines 1,730,000 Facilities Relocations/ Rehabilitations 225,000 SNRC Water Recycling Plant 15,000,000 Total Project Costs $ 19,510,000 Funded by Current Operating Revenue 3,605,000 Funded by Reserves 405,000 Funded by Developer Fees 500,000 Funded by SWRCB Loan 15,000,000 Total Funding $ 19,510,000 15 CAPITAL BUDGET FUNDING SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND TOTAL Capital Outlay $ 931,000 $ 175,000 $ 1,106,000 Capital Improvement Program 4,080,000 15,430,000 19,510,000 Total Expenditures 5,011,000 15,605,000 20,616,000 Operating Revenue 4,106,000 605,000 4,711,000 Reserves 405,000 - 405,000 Developer Fees 500,000 - 500,000 SRF Loan Funding - 15,000,000 15,000,000 Total Sources $ 5,011,000 $ 15,605,000 $ 20,616,000 AUTHORIZED POSITIONS AUTHORIZED POSITIONS •Total Full-Time Positions: 68 •Part-Time Temporary Positions: 2 •Requested Positions •Field Service Worker I •Facilities Maintenance Worker Program-Based Budgeting Increases Accountability and Transparency 17 BUDGETdraft HIGHLAND, CALIFORNIA fiscal year 2018-19 Contents TRANSMITTAL LETTER .............................................1 FY 2018-19 in Review ..............................................................9 District Management .............................................................10 INTRODUCTION .......................................................11 Budget Guide ...........................................................................13 Statistical/Supplemental Information ................................16 Organizational Structure ......................................................19 District Vision..........................................................................20 FINANCIAL SUMMARY ..........................................23 Financial Policies ...................................................................25 Budget Process .....................................................................26 Current & Proposed Budget Cycle Calendar ...........28 Basis of Budgeting ................................................................29 Fund Structure .......................................................................29 Fund/Program Relationship ..................................................31 Budget Summary ...................................................................32 Revenue Summary .................................................................33 Expenditure Summary ..........................................................39 Outstanding Debt ..................................................................46 Unrestricted Net Position ....................................................49 Long Range Financial Plan ..................................................51 CONSOLIDATED FINANCIAL SCHEDULES .......55 Consolidated Financial Summary ......................................57 Water Fund ..............................................................................60 Wastewater Fund ...................................................................73 PROGRAM SUMMARIES ........................................83 Program Descriptions ..........................................................85 Position Summary Schedule ..............................................86 Governing Board ...................................................................89 General Administration ........................................................95 Human Resources .................................................................101 Public Affairs ..........................................................................107 Conservation ..........................................................................113 Finance & Accounting ..........................................................119 Information Technology ......................................................125 Customer Service ..................................................................131 Meter Service ........................................................................137 Engineering ............................................................................143 Water Production ..................................................................149 Water Treatment ...................................................................157 Water Quality .........................................................................163 Water Maintenance ..............................................................169 Wastewater Maintenance ............................................175 Facilities Maintenance ...................................................181 Fleet Maintenance ..........................................................187 CAPITAL BUDGET .................................................193 Capital Expenditures .....................................................195 Capital Budget ................................................................197 Capital Improvement Projects....................................203 Accomplishments ...........................................................233 GLOSSARY .............................................................237 Chart of Accounts .........................................................243 TR A N S M I T T A L L E T T E R Transmittal Letter BLUE AGAVE Agave Tequilina The blue agave is native to the states of Jalisco, Colima, Nayarit and Aguascalientes in Mexico. The plant favors altitudes of more than 5,000 ft and grows in rich and sandy soils. It grows into a large succulent, with spiky fleshy leaves, that can reach over 7 ft in height. FISCAL YEAR BUDGET 2018-2019 3 TRANSMITTAL LETTER This section will be imported after adoption 10 EAST VALLEY WATER DISTRICT SUMMARY East Valley Water District has set out to be a world class organization that provides maximum benefits to the community. This high standard requires innovation at all levels of operation paired with measurable results. These efforts continue to result in outstanding projects and programs that have been recognized by professional organizations and publications. FY 2018-19 will continue to focus on making investments in the community. On behalf of the District, I would like to extend my appreciation to everyone that contributed to the development of this document. Respectfully submitted, John Mura General Manager/CEO Chairman of the Board CHRIS CARRILLO Vice Chairman DAVID E. SMITH Governing Board Member JAMES MORALES, JR. Governing Board Member RONALD L. COATS Governing Board Member PHILLIP R. GOODRICH district management governing board of directors Chief Financial Officer BRIAN TOMPKINS Director ofEngineering & Operations JEFF NOELTE District Clerk JUSTINE HENDRICKSEN Human Resources/Risk & Safety Manager KERRIE BRYAN Director of Strategic Servies KELLY MALLOY Operations Manager PATRICK MILROY Information Technology Manager ROBERT PENG IN T R O D U C T I O N CARPET ROSE Rosa x ‘Flower Carpet Red’ Recognized for its large bushes that can grow 4-10 feet tall, the Rosa x ‘Flower Carpet Red’ produce clusters of flowers several times a year and is both disease resistant and drought tolerant. Introduction FISCAL YEAR BUDGET 2018-2019 13 Budget Guide The budget document is the District’s annual financial plan prepared by District Management and approved by the Governing Board. The financial plan serves as a policy document, operations guide for programs, and as means of transparent communication. The intended audience of the budget document is citizens, local businesses, creditors, governmental agencies, and other stakeholders. BUDGET DOCUMENT SECTIONS The budget document consists of 8 sections including: Transmittal Letter This section includes the District Officials, General Manager/CEO’s Budget Transmittal Letter, Strategic Goals and Strategies, Short-Term Organization-Wide Factors, and Priorities and Issues. Introduction The Introduction section includes the Budget Guide, Statistical/Supplemental Information, Organizational Structure, and District Vision. Financial Summary This section presents an in-depth District-Wide overview of the FY 2018-19 Budget. Consolidated Financial Schedules This section is a comprehensive summary of the District’s Operating Budget presented for the District as a whole, and then for each of the District "Funds," Program Summaries This section provides comprehensive information for each functional program within the District including their operational budget. The FY 2018-19 Budget is organized into the following summary programs: • Governing Board • General Administration INTRODUCTION Annual financial plan, policy document and operations guide for transparent communication The District maintains a drought-tolerant demonstration garden. Plants from the garden are highlited throughtout this document. 14 EAST VALLEY WATER DISTRICT DISTINGUISHED BUDGET AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to East Valley Water District, California for its annual budget for the fiscal year beginning July 1, 2017. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. • Human Resources • Public Affairs • Conservation • Finance and Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance Each program section includes: • Program Personnel: This section is the authorized personnel allocated to each program with a program organization chart. • Program Structure: This chart displays the reporting chain for program personnel. • Function: This section includes a basic description of the responsibilities of each program. • Goals & Objectives: This section identifies specific goals and objectives for FY 2018-19. • Accomplishments: This section includes highlights from FY 2017-18. • Significant Changes: This section identifies causes of significant changes to program funding. • Levels of Service: This section links key performance indicators to the District’s Goals & Objectives. • Key Performance Indicators: These tables present measures that help the District define and evaluate a program’s performance. • Program Budget Detail: This section is a breakdown of the program expenditures by category or line item. 14 EAST VALLEY WATER DISTRICT FISCAL YEAR BUDGET 2018-2019 15 Capital Budget This section presents the Capital Outlay expenditures and Capital Improvement Projects for the FY 2018-19 Budget. Glossary This section provides definitions for general terms and the Chart of Accounts used throughout the budget document. FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change FY 2016-17 Actual Actual financial information for FY 2016-17 as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2017-18 Budget The FY 2017-18 Budget was adopted by the Governing Board on June 28, 2017 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2017-18 Projected The FY 2017-18 Projected column reflects the FY 2017-18 Budget in addition to any budget amendments approved by the Governing Board during the fiscal year. The FY 2017-18 Projected column is also adjusted to reflect management’s estimate of what revenues and expenditures will be at the end of the fiscal year. FY 2018-19 Budgeted This column initially reflects the FY 2018-19 Proposed Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY 2018-19 Budget, the information in the FY 2018-19 column changes, if necessary, to reflect the Board’s actions. Amount Changed / % Change These columns provide the amount changed/ percent change from the previous year’s budget to the newly proposed budget. Three years of financial information are presented to facilitate user analysis. BUDGET FINANCIAL INFORMATION East Valley Water District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: 16 EAST VALLEY WATER DISTRICT 1%Imported fromNorthern California(Surface Water) santa a n a r i v e r sant a a n a r i v e r plun g e c r e e k plunge creek eld e r c r e e k cit y c r e e k city c r e e k sa n d c r e e k tw i n c r e e k tw i n c r e e k warm cr e e k cook creek mil l c r e e k 210 210 Statistical/Supplemental InformationEVWD provides water and wastewater services to residents within its 30.1 square mile area to over 102,000 people within the cities of Highland and San Bernardino, portions of unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. The District was formed through a local election of mostly citrus grove operators, to have water service provided by a public agency. EVWD is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in the County of San Bernardino. HIGHLAND SAN BERNARDINO SEVEN OAKS DAM WATER SOURCES With a service area just over 30 square-miles, the District has three sources for water, the Santa Ana River, the Bunker Hill Groundwater Basin, and the State Water Project. The Santa Ana River (SAR) starts with natural springs and snow melt high in the San Bernardino Mountains. Groundwater is drawn from the Bunker Hill Basin, a natural underground storage area made up of soil, sand, and gravel. A small portion of the District’s water is imported from Northern California through the State Water Project. EVWD has access to this water through Valley District.82%Bunker Hill Basin(Groundwater) 17%Santa Ana River(Surface Water) FISCAL YEAR BUDGET 2018-2019 17 WASTEWATER COLLECTION & TREATMENT The District is responsible for the collection and conveyance of wastewater within the service area. Currently, all wastewater is sent to the San Bernardino Municipal Water Department facilities, where it is treated in accordance with a Joint Powers Agreement. In order to create a new source of supply, EVWD is preparing to construct the Sterling Natural Resource Center facility in the City of Highland that will treat up to 10 million gallons of wastewater daily and recharge it into the Bunker Hill groundwater basin. This project will result in hundreds of millions of gallons of water stored for use in dry years. The project will provide the region with the opportunity to produce a new supply of recycled water for beneficial reuse higher in the Santa Ana River watershed. This project will also provide an opportunity for potential new and/or enhanced riparian and aquatic habitats in City Creek. Once construction on the SNRC is completed, EVWD will be responsible for treating the wastewater created within its service area. POPULATION GROWTH Population growth projections vary within East Valley Water District’s service area due a number of proposed developments with unspecified timing for completion. Land use agencies have incorporated approximately 5,000 new housing and business units within General Plan documents, with approximately 200 units under construction in FY 2018-19. Average Household Income CLIMATE The climate in Highland and San Bernardino varies throughout the year, but overall is considered arid. On average, there are 283 days of sunshine per year. Temperatures average 94 degrees in the summer and 42 degrees during the winter. This area typically averages 13 inches of precipitation annually, mostly during the months of January through March. GOVERNMENT East Valley Water District is a California Special District established in 1954. The District is governed by a five-member Governing Board elected by voters at-large to staggered four-year terms. The Governing Board represents the public’s interest as policy makers with regards to rate for service, policies, ordinances, and budget adoption. Appointed by the Governing Board, the General Manager/CEO is responsible for overseeing daily operations and managing staff resources. East Valley Water District is a rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code. East Valley Water District’s service area includes the city of Highland, San Manuel Band of Mission Indians, Patton State Hospital, and portions of both the city and county of San Bernardino. Additionally, the District is within the Sphere of Influence of the Inland Valley Development Authority which oversees the reuse of the former Norton Air Force Base. EDUCATION Residents within East Valley Water District’s service area have access to award winning K-12 schools through the Redlands Unified School District (RUSD) and San Bernardino City Unified School District (SBCUSD). Higher education institutions located near East Valley Water District’s service area include: California State University, San Bernardino; California Baptist University; Loma Linda University; University of California at Riverside; and University of Redlands. Community college within the region include: Crafton Hills College; Riverside City College; and San Bernardino Valley College. 2016-17 Graduation Rates 90% from RUSD 85% from SBCUSD $54,117City ofHighland $38,213City of SanBernardino $54,496County of SanBernardino $47,016EVWD 18 EAST VALLEY WATER DISTRICT HOSPITAL & MEDICAL FACILITIES Hospital and medical facilities located in or near the East Valley Water District service area include Arrowhead Regional Medical Center, Loma Linda University Medical Center, Kaiser Foundation Hospital, Redlands Community Hospital, Community Hospital of San Bernardino, J. Pettis Veteran’s Administration Hospital, and St. Bernardine Medical Center. Additionally there are a number of urgent care and outpatient facilities located throughout the region. TRANSPORTATION Public transportation is available within the East Valley Water District service area through OmniTrans. With a variety of routes, OmniTrans provides busing services throughout the San Bernardino Valley, including cities of Highland and San Bernardino. Community members have access to the Metrolink commuter rail service, which provides long distance transportation to commuters from the San Bernardino area to major center of employment including Los Angeles and Orange County. Interstate 210 and both State Route 18 and 330 traverse through the District’s boundaries. These roadways provide access to major transportation corridors including Interstates 215, 15, and 10; and State Routes 18, 38, 60, and 91. PUBLIC SAFETY East Valley Water District serves members of the community within the cities of Highland and San Bernardino, unincorporated County of San Bernardino and San Manuel Band of Mission Indians. Within these communities law enforcement is provided by the San Bernardino County Sheriff’s Department and the City of San Bernardino Police Department. Fire protection services are provided by the California Department of Forestry and Fire and Protection (CalFire), San Bernardino County Fire Department, and the San Manuel Fire Department. MAJOR EMPLOYERS Major employment industries within the cities of Highland and San Bernardino include schools, mental health services, public administration, rail, health care, public safety, casinos, transportation, and construction. The District serves a population of 103,000 214 Miles of Sewer Main 300 Miles of Water Main 268 Leaks Repaired 450 Fire Hydrants Flushed Annually 3,300 Water Samples Collected Annually 15,000,000 average Gallons of Water Produced Daily 28,977,000 Gallons of Potable Water Stored 6,000,000 Gallons of Sewage Conveyed Daily 700 Valves Exercised 16 Active Ground Water Wells Established Square MileService Area 195430.1 15,700 Manual &7,300 AMI Automatic Meters Read Monthly DISTRICT SPOTLIGHT FISCAL YEAR BUDGET 2018-2019 19 Organizational Structure Ratepayers Governing Board Engineering General Manager/ CEO Chief Financial Officer Information Technology Customer ServiceOperations Manager Water Maintenance Meter Services Wastewater Maintenance Water Production Facilities Maintenance Water Treatment Fleet Maintenance Water Quality Director of Engineering & Operations General Administration Human Resources Public Affairs Legal Counsel Finance Conservation OPERATIONS PERSON/POSITION PROGRAM FTE: 3 FTE: 1 FTE: 4 FTE: 5 EO: 5 FTE: 5 FTE: 3 FTE: 7 FTE: 2 FTE: 2 FTE: 15 FTE: 6 FTE: 4 FTE: 2 FTE: 2 FTE: 2 FTE: 1 FTE: FULL TIME EMPLOYEES EO: ELECTED OFFICIALS 20 EAST VALLEY WATER DISTRICT DISTRICT VISION In April 2015, the Governing Board adopted a new District Vision and Core Values to replace the existing Mission Statement. Additionally, on January 10,2018, the District updated and adopted ambitious Agency Goals and Objectives to further enhance the effort set forth in the 2012 Strategic Initiatives. East Valley Water District is a performance based agency. In order to ensure consistent decision-making throughout the organization, the Governing Board adopted the updated District Vision. By setting clear expectations, all staff members are encouraged to be active participants in operations while looking for opportunities to make a positive impact on the community. LEADERSHIP Motivating a group of people to act towards achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. core values &Enhance Preserve THE QUALITY OF LIFE FOR OUR Community THROUGH INNOVATIVE LEADERSHIP &World Class PUBLIC SERVICE FISCAL YEAR BUDGET 2018-2019 21 AGENCY GOALS & OBJECTIVES I. Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources B. Maximize Internal Capabilities through Ongoing Professional Development C. Strengthen Regional, State and National Partnership D. Encourage Performance Based Results through Staff Empowerment II. Maintain A Commitment to Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management B. Utilize Effective Communication Methods C. Pursue Alternative Funding Sources D. Provide Quality Information to Encourage Community Engagement III. Deliver Public Service With Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts B. Strive to Provide World Class Customer Relations C. Promote a Positive Organizational Culture D. Embrace an Environment of Active Learning and Knowledge Sharing IV. Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services B. Enhance Planning Efforts that Respond to Future Demands C. Dedicate Efforts Toward System Maintenance and Modernization D. Enable Fact-Based Decision Making Through State-of-the-Art Data Management To maintain momentum and encourage continued growth, the District adopted these foundational principles. 22 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY FI N A N C I A L S U M M A R Y GOLDEN SEDUM Sedum adolphii Drought tolerant, Sedum Adolphii is a colorful succulent with golden-apricot hue foliage. Depending on the season and sun exposure, leaf tips take on an orange-red color. Financial Summary FISCAL YEAR BUDGET 2018-2019 25 An in-depth District-wide overview of the FY 2017-18 budget. Financial Policies The East Valley Water District financial management policies provide a basic framework for the overall fiscal management of the District. The policies represent a foundation for addressing changing circumstances and conditions, and to assist in the decision-making process. Financial policies represent guidelines for evaluating both current activities and proposals for future programs. They also reflect long-standing principles and practices, which have enabled the District to maintain its financial stability. Policies are reviewed annually to ensure the guidelines represent a realistic, current framework for policy decisions. BALANCED BUDGET East Valley Water District shall prepare an itemized budget for each fund and each program within those funds. The budgets will be balanced, with current revenues and use of reserves equal to or greater than current expenditures/expenses using the following strategies: improve productivity; raise fees to offset costs of providing services and/or use reserves if available. INVESTMENT POLICY The District’s Investment Policy applies to the investment of short-term operating funds of the District in excess of those funds required to meet current District expenditures. District policy requires adherence to California Government Code sections 5921 and 53601 regarding allowable investments. The policy also includes guidelines on Pooling of Funds, Safety, Liquidity, Yield, Prudence, Ethical Standards, Risk, Diversification, and Reporting. RESERVE POLICY The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs. To that end, the District has adopted a Designated Funds (Reserve) Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs. The Designated Funds Policy has established the following reserves and reserve target levels: • Operating Reserves – maintain 90 days of District’s budgeted total operating expenses; • Rate Stabilization Reserves – maintain 45 days of District’s budgeted total operating expenses; An in-depth District-wide overview of the FY 2017-18 budget. FINANCIAL SUMMARY An in-depth District-wide overview of the FY 2018-19 budget. 26 EAST VALLEY WATER DISTRICT • Capital Replacement Reserves – minimum of 100 percent of depreciation expense for the preceding year; • Emergency Reserves – the target for this reserve is 2 percent of the total value of Plant and Equipment. DEBT POLICY The District has adopted a policy regarding the utilization of debt. Standards established in this policy require: • An equitable allocation of capital costs/charges between current and future system users; • Minimum rate volatility. In addition, the District confines long-term borrowing to capital improvement projects that cannot be financed from current revenues. When the District finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the estimated useful life of the asset. The District maintains good communication with bond rating agencies regarding financial condition and will follow a policy of full disclosure on every financial report. The District has no legal debt limits. Budget ProcessThe budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. The purpose of this budget document is to communicate the District’s financial priorities with citizens, local businesses, creditors, rating agencies, other local agencies and stakeholders, and District staff. The FY 2018-19 Budget represents guidelines established to address the District’s short-term and long-term goals and objectives. This document also demonstrates the District’s ability to use financial resources for completing critical capital projects for current and future customers as well as the District’s commitment to meet its financial obligations. Staff is confident that the financial framework outlined in the FY 2018-19 Budget will allow the District to deliver reliable, high-quality water and wastewater services to its customers in a prudent and sustainable manner. Each year, administrative and operational program managers establish goals and objectives in support of the District’s strategic initiatives and which, upon adoption by the Governing Board, provide clear direction to staff regarding District-wide priorities. Progress is measured throughout the fiscal year and reported to the Governing Board on a quarterly basis. Moreover, in developing the budget, staff utilized the District Vision for prioritizing District resources for operational and capital activities. STAKEHOLDER INPUT The District has established a Community Advisory Commission (CAC) which meets regularly at publicly noticed meetings, to discuss significant affairs of the District, including development of the annual budget. Members of the CAC are civic minded community leaders who donate their time to provide input to staff on agenda items. The District Board also conducts a series of public workshops to discuss important milestones in the development of the annual budget. Public comment is welcomed and encouraged at these workshops. DISTRICT VISION To help ensure consistent purpose, East Valley Water District has adopted a comprehensive statement that serves as a guide for the decision- making process throughout the organization DEVELOP DISTRICT GOALS AND OBJECTIVES The District is developing a Five-Year work plan to establish a series of long-term objectives that will link management and staff work efforts to the District’s Strategic Plan. The Five-Year plan will be presented to the governing Board for consideration at a regular Board meeting during fiscal year 2018-19. Adoption of a Five-Year plan will allow staff to establish program goals that take more than single fiscal year to accomplish, yet still relate to specific, organizational objectives. With each annual budget, incremental steps in the Five-Year plan can be adopted as current year District goals and objectives. Currently, annual District goals and objectives are tied to the strategic plan, and adopted as part of the General Manager / CEO’s annual performance evaluation. FISCAL YEAR BUDGET 2018-2019 27 DEVELOP PROGRAM GOALS AND OBJECTIVES Each program manager is tasked with developing achievable and measurable goals and objectives to be implemented in a single fiscal year. This endeavor clearly identifies the planned efforts of the program for the given period, links the program’s efforts to the broader District goals, and allows program employees to propose / establish individual goals that support the District’s long-term goals and vision. ESTABLISH KEY PERFORMANCE INDICATORS & ESTIMATE COSTS To assess the organization’s productivity and effectiveness, unique key performance indicators are utilized as a quantitative measure. Cost estimates reflect the anticipated expenses for accomplishing each program’s day-to-day operational tasks, special projects and overall program goals. ADOPT BUDGET Once the budget document has been prepared, including revenue and expense projections, the East Valley Water District Governing Board adopts a final budget prior to June 30 of each year. A hard copy version of the final budget document is available to the public on request, or can be viewed in its entirety on the District website. PROGRAM MONITORING AND BUDGET ADJUSTMENTS In January of each year, District management meets to analyze revenues and expenditures to determine whether realized revenue has exceeded revenue projections to the extent that additional program services or capital projects can be proposed, and to determine whether transfers between budget line items are necessary to ensure that budget limitations are not exceeded. Requests for budget adjustments are submitted by program managers to Executive Management for review, who then forward the requested adjustments to Finance for incorporation into proposed budget amendments to be presented to the Board of Directors at a Mid-Year Budget Review in February. When possible, adjustments have no net effect on the original budget balance unless additional revenue is available. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, a recommendation to defer capital projects or draw on reserves is usually required to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year Budget Review. District Vision Adopt Budget Monitor Programs & Adjust as Necessary Develop Program Goals & Objectives Establish Performance Indicators & Estimate Costs STAKEHOLDER INPUT THROUGHOUT PROCESS 28 EAST VALLEY WATER DISTRICT CURRENT AND PROPOSED BUDGET CYCLE CALENDAR Date Activity June 12, 2018 FY 2018-19 Budget Workshop June 27, 2018 FY 2017-18 Budget Adoption October 24, 2018 FY 2018-19 1st Quarter Budget Review at Public Board Meeting January 24, 2018 Budget Kick-Off Meeting with Program Managers February 12, 2019 Dept Goal Concepts Due to Dept Admins for General Manager/CEO February 13, 2019 FY 2018-19 2nd Quarter / Mid-Year Budget Review at Public Board Meeting March 4, 2019 FY 2019-20 Capital Outlay and Capital Improvement Program Planning Meeting March 14, 2019 FY 2019-20 All Capital Requests Due to Finance March 28, 2019 FY 2019-20 New Position Requests, Program Budget Requests and Goals & Objectives Due to Finance April 1-4, 2019 FY 2019-20 Review Proposed Goals & Objectives with Program Managers & General Manager/CEO April 17, 2019 FY 2019-20 Proposed Goals & Objectives Workshop at Public Board Meeting April 24, 2019 FY 2019-20 3rd Quarter Budget Review at Public Board Meeting May 15, 2019 FY 2019-20 Revenue Projection Workshop at Public Board Meeting June 12, 2019 FY 2019-20 Budget Workshop at Public Board Meeting June 26, 2019 FY 2019-20 Budget Adoption at Public Board Meeting 28 EAST VALLEY WATER DISTRICT FISCAL YEAR BUDGET 2018-2019 29 Basis of Budgeting The District’s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds. The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. However, there are exceptions where the accrual basis is not conducive to effective presentation of the District’s budget, in which case, GAAP is not followed. Those exceptions are as follows: • Compensated absence liabilities that are expected to be liquidated with current expendable financial resources are accrued as earned by employees (GAAP standard) as opposed to being expended when paid (budget procedure). • Principal payments on Long Term Debt are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis. • Capital Outlay are capitalized on a GAAP basis, however, on a Budget basis, they are treated as expenditures. • Depreciation expense is recorded on a GAAP basis but is not contemplated on the Budget basis. • Interest expenditures are capitalized during construction on a GAAP basis, but are reported as an expense on a Budget basis. • Pension expense is budgeted based on employer contribution rates assigned by CalPERS. For financial statement reporting, pension expense is recorded based on the change in the net pension liability in accordance with GASB 68. Fund Structure GAAP requires that East Valley Water District account for its activities as a single, governmental enterprise fund. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and, in the case of East Valley Water District, are entirely financed by revenues derived from user charges. RAW WATER SOURCES WATER PRODUCTION PLANTS DISTRIBUTION & STORAGE COLLECTION & CONVEYANCE WATER FUND WASTEWATER FUND WASTEWATER DISCHARGE WATER RECLAMATION FACILITIES EVWD Operations 30 EAST VALLEY WATER DISTRICT Though in a single Enterprise Fund, East Valley Water District engages in two separate and distinct business-type activities including the distributions of potable water, and the collection of wastewater. Accordingly, the District’s budget is organized based on these activities, or sub-funds, hereafter referred to as the Water Fund and the Wastewater Fund. The Water Fund accounts for the costs of acquiring raw water, treating the water, and then pumping and distributing the treated water to District customers. These operations are supported by customer accounts and general administration functions. The Wastewater Fund accounts for the cost of collecting wastewater from residential and commercial customers and then delivering the wastewater to the City of San Bernardino Treatment Plant. Both Funds support a significant amount of facilities and infrastructure. Accordingly, each fund contributes to the maintenance, replacement and improvement of that infrastructure. When the issuance of debt is appropriate to fund major capital projects, each fund has the authority to issue debt. To support these costs each fund adopts its own user rates, fees and charges, and has its own self- balancing set of accounts. Budgets for each fund are adopted to support the associated capital, and debt service costs, to make reasonable contributions to reserves, and to pay for an allocated portion of operating and maintenance program expenses. Additional detail about the activities and budgets of each fund are included at the Water Fund and Wastewater Fund tabs in this document. Water Sales Service Charges Water Fund Wastewater Fund Investment/ Other Income Water Capital Expenditures & Debt Service District Operations & Maintenance Programs Collection Charges Treatment Charges Investment/ Other Income Wastewater Capital Expenditures & Debt Service FUND STRUCTURE FISCAL YEAR BUDGET 2018-2019 31 Program Water Fund Wastewater Fund Total 1000 Governing Board $ 235,900 $ 101,100 $ 337,000 2000 General Administration 880,600 377,400 1,258,000 2100 Human Resources/Risk Management 693,000 297,000 990,000 2200 Public Affairs 571,000 571,000 1,142,000 2300 Conservation 593,000 - 593,000 3000 Finance 792,000 339,000 1,131,000 3200 Information Technology 706,300 302,700 1,009,000 3300 Customer Service 1,357,900 428,100 1,786,000 3400 Meter Services 283,000 - 283,000 4000 Engineering 1,064,700 456,300 1,521,000 5000 Water Production Administration 494,000 - 494,000 5000-51 Source of Supply 2,791,000 - 2,791,000 5000-52 Pumps & Boosters 727,000 - 727,000 5000-54 Transmission & Distribution 366,000 - 366,000 5100 Water Treatment 848,000 - 848,000 5200 Water Quality 434,000 - 434,000 6000 Maintenance Administration 310,500 34,500 345,000 6100 Water Maintenance 2,204,000 - 2,204,000 6200 Wastewater Maintenance - 8,996,000 8,996,000 7000 Facilities Maintenance 742,000 219,000 961,000 7100 Fleet Maintenance 413,100 45,900 459,000 TOTAL $ 16,507,000 $ 12,168,000 $ 28,675,000 Fund/Program Relationship District operating and maintenance expenses are all budgeted and accounted for by Program. Expenses incurred by Program’s are then allocated to the water and wastewater funds based on the assessed benefit of Program services to each fund. The benefit assessment entails the evaluation of each program and the services provided through activity based costing. Programs with activities fully aligned with the purpose of one fund or the other, are charged fully to the appropriate fund, while programs with general and administrative type functions are generally allocated using a 70%-30% split. The percentage allocation is often adjusted for unique circumstances. For example, with the implementation of water budget based rates, allocated costs for Customer Service were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates. In addition, while a new wastewater recycling facility (Sterling Natural Resource Center) is being explained and promoted to District ratepayers, Public Affairs costs have been allocated more toward the Wastewater Fund. Below is a table illustrating the Fund/Program relationship for the FY 2018-19: 32 EAST VALLEY WATER DISTRICT Budget Summary The budget for fiscal year 2018-19 is balanced, and reflects East Valley Water District’s commitment to allocating anticipated resources to meeting the expectations of District ratepayers, creditors, and other stakeholders. The District projects that it will receive $37,848,000 in revenue during FY 2018-19, and has developed a budget plan to allocate $28,675,000 toward funding of program operations, $4,358,000 toward the amortization of outstanding debt, and $4,711,000 toward capital asset improvement and replacement. The table below presents a summary of revenue by type, and expenditures by cost category, and is followed by a discussion of revenue and expenditures. Water Fund Wastewater Fund FY 2018-19 Total REVENUE/SOURCES Water Sales / Wastewater Collection Charges $ 15,100,000 $ 4,630,000 $ 19,730,000 Wastewater Treatment Charges - 8,233,000 8,233,000 Water System (Meter) Charges 8,960,000 - 8,960,000 Other Charges and Income 673,000 252,000 925,000 TOTAL REVENUE/SOURCES 24,733,000 13,115,000 37,848,000 OPERATING EXPENSES Employment Expenses 7,371,900 2,166,100 9,538,000 Water Costs 1,067,000 - 1,067,000 Contracted Wastewater Treatment - 8,233,000 8,233,000 Power Costs 1,700,000 - 1,700,000 Materials and Supplies 1,089,950 188,550 1,278,500 Contract Services 4,841,700 1,398,800 6,240,500 Other Operating Expenses 436,450 181,550 618,000 TOTAL OPERATING EXPENSES 16,507,000 12,168,000 28,675,000 OTHER USES Debt Service 4,046,000 312,000 4,358,000 Capital Outlay 931,000 175,000 1,106,000 Capital Improvement Program 3,175,000 430,000 3,605,000 TOTAL OTHER USES 8,152,000 917,000 9,069,000 TOTAL OPERATING EXPENSES/OTHER USES $24,659,000 $13,085,000 $37,744,000 TOTAL NET SURPLUS/(DEFICIT)$ 74,000 $ 30,000 $ 104,000 FISCAL YEAR BUDGET 2018-2019 33 Revenue Summary Revenue projections are key to determining the amount of financial resources available to support District programs and other obligations, therefore, projections are developed early in the budget process and then presented to the District’s Board of Directors in early May. East Valley Water District receives 98% of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and adjusted as necessary to cover the costs of providing services to ratepayers. The District derives its authority for setting rates from §31000 of the California Water Code, and rate adjustments are adopted at public hearings conducted in accordance with requirements established by California Propositions 26 and/or 218. The District has five major revenue categories based on rates: REVENUE HISTORY AND FORECAST (IN MILLIONS) 12.8 24.5 5.0 10.0 15.0 20.0 25.0 30.0 FY 2017-18Estimated FY 2018-19Projected FY 2019-20Projected FY 2020-21ProjectedFY 2015-16 FY 2016-17 Water Revenue Wastewater Revenue 11.5 20.0 13.3 25.3 13.3 24.1 13.4 24.4 13.5 24.8 12%WastewaterCollection 22%WastewaterTreatment 40%Water Sales 24%Meter Charges 2%Other Charges 34 EAST VALLEY WATER DISTRICT Water and wastewater rate revenues are highly reliant on new development and rate increases for sustained growth. Water sales are also reliant on consumer demand, which increases or decreases based on weather and water rates. The multi-year drought in California forced the District, and like agencies, to promote conservation and reduce water usage by a statewide average of 25%, threatening to cause a sharp decline in water sales revenue. East Valley Water District avoided this decline by revising its rate structure. At the same time, development has been nearly non-existent for several years. Small ‘infill’ development is proceeding, but large developments are being stalled by community concerns about water supply, and traffic congestion. These concerns will be addressed by ballot measures in the November 2018 elections. No significant number of new customer accounts have been built into projections for the 2018-19 fiscal year. A more detailed description of the District’s major revenue sources, and related trends, is included in the following sections. In addition, the Water Fund and Wastewater Fund sections of this document include a detailed discussion of the rates used to calculate 2018-19 revenue projections. WATER SALES The District produces potable water for sale to four customer classes; single family residential, multi- family residential, commercial and irrigation. All customers are billed on a monthly cycle based on the amount of water usage, which is metered and measured in hundred cubic feet (HCF) where 1 HCF is equal to 748 gallons. Customer Consumption in Hundred Cubic Feet The District bills for water consumption in three ascending ‘Water Budget’ rate tiers. Therefore, as customer water usage exceeds established tier widths or thresholds, water becomes more expensive. Water Budget tiers are unique in that tier width, or the number of HCF billed at each tier, is determined based on the individual customer’s characteristics. For single and multi-family customers, the tier 1 width is determined based on the number of occupants in a dwelling, and is intended to supply the customer with sufficient water for indoor health and safety needs. Tier 2 width is based on a customer’s landscaped square footage, and the measured evapotranspiration, or the rate at which plants and soil lost moisture during the month being billed. The tier 2 budget is intended to supply sufficient water for efficient irrigation of the landscaped square footage. Tier three is billed for water use in excess of the Tier 1 and 2 budgets and is deemed to be inefficient use. Irrigation meter customers receive only a Tier 2 budget as described above, with usage in excess of the budget billed at the Tier 3 rate. Finally, commercial customers, having neither occupants or landscaped area associated with their domestic meter, receive Tier 1 and 2 water budgets based on the business’ historical water usage, with excess usage billed at the Tier 3 rate. The table below summarizes water sales volume (HCF) by billing tier, including conservative projections for fiscal year 2018-19. FY 2015-16 Actual FY 2016-17 Actual FY 2017-18 Projected 2018-19 Budgeted Tier 1 3,640,752 3,662,249 3,631,811 3,556,000 Tier 2 2,164,931 2,489,442 2,469,029 2,326,500 Tier 3 816,714 915,395 1,207,002 894,500 TOTAL 6,622,397 7,067,086 7,307,842 6,777,000 FISCAL YEAR BUDGET 2018-2019 35 There are no rate adjustments scheduled to become effective during FY 2018-19, so the projected drop in customer consumption for the upcoming year is due to anticipated conservation messaging at the State level amid concerns that drought conditions have returned following a very wet winter in 2017. Based on the projection of water sales in volume, the District has projected water sales of $15.1 million. The graph below shows water sales trends for four years and the current year projection. Water Sales $2M $4M $6M $8M $10M $12M $14M $16M $13,505,159 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted $11,927,523 $14,537,867 $16,342,378 $15,100,000 Flat Rate Tier 1 Tier 2 Tier 3 The District transformed its rate structure from a flat rate to water budget tiered rates in 2015-16. 36 EAST VALLEY WATER DISTRICT WATER SYSTEM CHARGES Also referred to as Meter Charges, these charges are fixed monthly charges assessed to customers based on the size of the meter serving their property. Along with the rate restructuring discussed above, meter charges were increased significantly (up to 70%) to shift some of the burden for revenue stability from unpredictable water sales to these more reliable fixed charges. A second rate adjustment of 10% became effective July 1, 2016, the last adjustment to Meter Charges. Meter charge revenue is projected to remain the same for fiscal year 2018-19 as there are no rate adjustments that will become effective during the year and there will be no significant change in the number of customer connections. Meter Charges FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted $4,874,581 $8,063,077 $8,944,652 $8,845,000 $8,960,00 $1M $2M $3M $4M $5M $6M $7M $8M $9M East Valley Water District is a not-for-profit public agency and is required by law to only charge its customers the costs associated with providing utility services. FISCAL YEAR BUDGET 2018-2019 37 WASTEWATER COLLECTION CHARGES This charge is assessed to District customers to fund the maintenance and replacement of wastewater collection pipelines, make wastewater debt service payments, and fund program services associated with the wastewater fund. The rate structure includes a fixed monthly charge of $15.36 for single family residences, and a combination of fixed and volumetric charges for commercial and multi-family customers – currently $3.90 and $.55 per HCF of water usage, respectively. Wastewater collection rates have not been adjusted since 2012 so wastewater collection revenue has remained relatively flat over the past five years, fluctuating slightly with small infill development projects and with changes in water usage by commercial customers. A noticeable change in 2015-16 was due to customer response to tiered water rates, and significant conservation efforts in response to the severe drought that plagued California. Wastewater Collection Charges $4,559,667 $4,286,594 $4,543,978 $4,650,970 $4,630,000 $500K $1M $1.5M $2M $2.5M $3M $3.5M $4M $4.5M $5M Single Family Residential Multi-Family / Commercial FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted 38 EAST VALLEY WATER DISTRICT WASTEWATER TREATMENT CHARGES Rates for these charges are established by the City of San Bernardino Municipal Water Department, which is currently contracted to treat all wastewater generated by District customers. The District bills customers within its service area at the established rates, receives customer payments, and then remits these revenues collected to the Water Department. Wastewater treatment rates established by the City have increased an average of 3.5% over the last six years, with the most recent increase of 3.4% became effective July 1, 2017. Wastewater Treatment revenue increased significantly in FY 2017-18, partially due to the modest rate increase, and partially due to customer perceptions that the severe drought in California is forgotten due to heavy rains and snow in the winter of 2017. Due to the wet winter, conservation messaging by water agencies had subsided, however, a relatively dry winter in 2018 will again lead to increased conservation messaging and a drop in consumption. Wastewater treatment rates for fiscal year 2018-19 include a fixed monthly charge of $21.55 for single family residential customers, and a combination of fixed and volumetric charges for commercial and multi-family customers – currently $3.90 plus a per HCF rate ranging from $1.29/HCF to $3.18/HCF depending on the type of business run by the commercial customer. Total Wastewater Treatment Charges projected for fiscal year 2018-19 are $8,233,000. Wastewater Treatment Charges Wastewater treatment charges are collected on behalf of the City of San Bernardino Municipal Water Department. $6,907,828 $7,165,655 $8,129,944 $8,233,000 $8,578,636 $6.7M $7M $7.3M $7.7M $8M $8.3M $8.6M FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted FISCAL YEAR BUDGET 2018-2019 39 The District prepares its annual budget and financial plan based on operating expenses proposed by program managers, scheduled debt service payments, and capital expenditures prioritized in the District’s Capital Improvement Program. Resources required for these expenditures are then appropriated from the District’s Water and Wastewater enterprise funds. OTHER CHARGES AND INCOME These charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering water and wastewater services. The FY 2018-19 projection for these charges is $925,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. $72,000Initiation ofService $115,000DeliquentFees $359,000DisconnectNotice Charge $89,000MiscellaneousRevenue $220,000InvestmentIncome $70,000ReconnectFees Expenditure Summary 12.7%CapitalExpenditures 26%EmployementExpenses 21.8%ContractedWastewaterTreatment 19.1%Materials/Contract Services 11.5%Debt Service 2.8%WaterCosts 4.5%PowerCosts 1.6%OtherOperating 40 EAST VALLEY WATER DISTRICT EMPLOYMENT EXPENSES Employment expenses include salaries and benefits paid for 68 full time employees and 3 temporary employees. Employees are represented by two in- house bargaining units, or employee partnerships, which have negotiated a three-year Memorandum of Understanding (MOU) regarding wage and benefit adjustments through FY 2019-20. Salaries include regular wages, overtime and on- call pay, paid leave time, incentives, and differential payments which are awarded upon attainment of designated certifications. Salaries are projected to increase by approximately 4% for 2018-19, which includes a 3% cost of living adjustment (COLA) and step increases, subject to annual performance evaluations, for 32 employees who have not reached the top step in their pay range. Benefit programs include a retirement plan with the California Public Employee Retirement System (CalPERS), a health insurance plan, and worker’s comp and Medicare insurance. Retirement plan funding requirements are determined through actuarial valuations conducted by CalPERS, which stipulates an employer and employee share. The District pays the employer share, while employees pay their share of contributions through payroll withholding. In previous years, the annual required contributions that member agencies have paid to CalPERS, plus investment earnings on plan assets, have not been sufficient to offset actuarially calculated pension obligations, and, as a result, most CalPERS agencies report a Net Pension Obligation (NPO) on their year- end financial reports. At June 30, 2017, the District had a reportable NPO of $10 million. CalPERS has adopted a plan to amortize the NPOs through increased employer contributions. Accordingly, required District contributions to CalPERS are projected to increase by $193 thousand, or 19% for FY 2018-19. To mitigate the fiscal impact of these increases, the District looks for opportunities to make additional payments toward unfunded pension liabilities; additional payments of $350 thousand and $500 thousand were made in fiscal years 2015-16 and 2017-18, respectively. In addition, development of a financial plan to further paydown the unfunded liability has been established as a District-wide goal for FY 2018-19. Healthcare costs are also split between the District and employees as the District pays 90% to 95% of a designated ‘benchmark’ plan, with employees paying the balance. Premiums for the benchmark plan decreased 9% for 2018, affecting both District and employee contributions to healthcare costs accordingly. FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted $7,166,166 $8,709,178 $8,917,376 $9,957,000 $9,538,000 $2M $4M $6M $8M $10M Benefits Salaries FISCAL YEAR BUDGET 2018-2019 41 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted $250K $500K $600,855 $471,251 $1,309,459 $801,000 $1,067,000 $750K $1M $1.2M Surface Water Purchased Water Groundwater Water Costs The District has three sources of water - groundwater, Santa Ana River surface water, and imported water available from the State Water Project. WATER COSTS The District anticipates customer demand for approximately 15,560 acre-feet, or 5.07 billion gallons, of water during the 2018-19 fiscal year. To meet this demand, the District will procure water from three different raw water sources – groundwater, surface water, and the purchase of imported water. Each of these sources have associated rates, fees or assessments charged by other agencies/companies as explained below: • Groundwater - assessment to be paid to the San Bernardino Basin Capital Groundwater Council (GC), a collaborative effort formed in January 2018 for the purpose of purchasing imported water to restore and maintain sustainable groundwater levels. Assessment amounts are based on historical pumping levels by each of the signers to the GC Framework Agreement, and the District’s assessment for FY 2018-19 is projected to be $445,000. The GC assessment takes the place of a pumping assessment previously paid to the San Bernardino Valley Water Conservation District. • Surface Water – stockholder assessments paid to the North Fork Water Company (NFWC) on Company shares owned. Annual assessments are set to cover the costs of operating NFWC and includes delivery of Santa Ana River surface water, also based on the number of shares owned. The District owns 5,906 shares and projects that the assessment will be $20 per share, and has budgeted $122,000 accordingly. • Purchased Water – paid to the San Bernardino Valley Municipal Water District to buy State Project water for $126 per acre foot (AF). Very little water has been available from this source during the severe California drought over the past few years, but due to heavy snow and rainfall in the winter of 2017 excess water has been made available. The District has budgeted $500,000 to purchase up to 3,968 acre-feet of imported water in 2018-19. Total water costs associated with these three sources are projected to be $1,067,000 for FY 2018-19. 42 EAST VALLEY WATER DISTRICT CONTRACTED WASTEWATER TREATMENT As outlined in the discussion about wastewater treatment charges, the District has budgeted $8,233,000 for the cost for contracted wastewater treatment in fiscal year 2018-19. All charges billed and collected for these services are paid to the City of San Bernardino Municipal Water Department at the end of each month. POWER COSTS Power costs include the electrical power to extract groundwater using wells, to treat imported water, surface water, and groundwater when necessary, and to distribute water throughout nine pressure zones within the District using booster pumps. Although rates for electrical power have been increasing, the District has been able to control, and sometimes reduce, annual power costs for two reasons. First, the California drought and customer conservation reduced water consumption and therefore the power required to produce it. Second, energy conservation measures implemented in 2014, including replacement of inefficient pumps and refinement of production schedules to coincide with off-peak power pricing, has allowed the District to become much more efficient in energy consumption. Total District power costs increased to $1.73 million in fiscal year 2017-18 due to higher than expected water consumption and the associated need for power to distribute water to customers. However, in May 2018 the District completed a hydro-electric generation facility at its surface water treatment plant, which will help offset any increases in energy pricing or demand. Accordingly, projected energy costs for fiscal year 2018-19 are $1.7 million. Power Costs The District implemented four significant energy conservation measures in 2014. FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted $2,123,485 $1,648,965 $1,535,223 $1,755,000 $1,700,000 Treatment Wells Boosting $500K $1M $1.5M $2M FISCAL YEAR BUDGET 2018-2019 43 Program Services Description FY 2017-18 Projected FY 2018-19 Budgeted Governing Board General Office Supplies $ 1,000 $ 1,000 Administration General Office Supplies 5,300 8,000 HR Desk, Office Supplies, Software 2,245 17,000 Public Affairs Promo Items, Events & Emergency Supplies 27,805 189,000 Conservation Educational Materials, Books, Workshop Items 132,203 28,000 Finance Auditing, Banking, Software 5,150 11,000 Information Technology Computer Supplies 45,075 35,000 Customer Service Lobby Materials, Office Supplies 8,400 8,000 Meter Services Hydration Supplies, Repellents 1,664 5,000 Engineering Small Tools, Plotter Supplies 5,257 25,000 Production Hand Tools, Lubricants, Electrical Supplies, Chemicals 194,986 284,000 Water Treatment Tools, Lab Supplies, Chemicals 151,463 165,000 Water Quality Test & Repair Kits, Chemicals 19,180 18,000 Water Maintenance Inventory Items, Fill Materials 300,002 244,000 Wastewater Maintenance Tools, Degreaser, Insecticides, Manhole Covers 31,738 36,000 Facilities Maintenance Paint Supplies, Hardware, Tools, Signs 44,357 46,000 Fleet Maintenance Large Equipment Repairs 171,406 157,000 TOTAL $ 1,147,231 $ 1,277,500 MATERIALS AND SUPPLIES Costs of materials include chemicals for treatment, small tools and parts for distribution system repairs, small office tools and general office supplies, and fuel for District vehicles. Materials are budgeted to increase 11% in 2018- 19 primarily due to significant outreach materials that will be needed to keep customers / community members informed of the progress on the Sterling Natural Resource Center wastewater recycling plant. Public Outreach is a condition of the state funding received for this significant project. 44 EAST VALLEY WATER DISTRICT CONTRACT SERVICES Contract services are proposed by Program Managers to fund ongoing needs for outside services, and periodic needs for technical expertise to help meet program goals and objectives established for the current year. Contract Services, by Program, includes the following: Significant variances between prior year contact services costs and projections for 2018-19 include: • Public Affairs costs have increased to support the production of informational materials to support the Sterling Natural Resource Center • Engineering is projecting a $200,000 increase in contract services as consultants are used to supplement staff’s capabilities to manage significant new projects, including those driven by new development. • Production cost increases are due to increased utilization of the District’s new SCADA consultant for troubleshooting and finding weaknesses in the system security. • Facilities Maintenance cost increases are related to a full time guard who will secure the water treatment plant until a physical barrier can be erected to prevent intrusion by unauthorized persons. • Fleet Maintenance will contract with a mobile fleet maintenance service to perform routine maintenance rather than replacing a fleet maintenance technician who is retiring. Program Services Description FY 2017-18 Projected FY 2018-19 Budgeted Governing Board CEO Evaluation and Election Expenses $ 11,000 $ 111,000 Administration Legislative, Legal Consultants 506,000 363,000 HR Safety Consultants, OPEB 239,000 382,000 Public Affairs Printing, Emergency Training 206,000 380,000 Conservation Community Events, Demo Garden, Direct Installation of Water Efficient Irrigation Timers 387,000 431,500 Finance Auditing, Banking, Software 166,000 176,000 Information Technology GIS, Data Mgt, Cybersecurity 462,000 506,000 Customer Service Billing, Collections, Pmt Processing, Software Support 998,000 1,024,000 Meter Services Uniforms 8,000 10,000 Engineering Surveying, Engineering, Software, Permits 286,000 487,000 Production SCADA Updates, Inspections, Valve Maintenance 367,000 495,000 Water Treatment Filtration Media Replacement, Software Maintenance 186,000 149,000 Water Quality Lab Fees, Software Maintenance 120,000 161,000 Water Maintenance Leak Detection, Asphalt Repair 449,000 476,000 Wastewater Maintenance Manhole Insect Treatment, Collection Pipeline Spot Repairs 231,000 246,000 Facilities Maintenance Security, Janitorial, Landscaping, Equipment Repairs, 597,000 672,000 Fleet Maintenance Large Equipment Repairs, Maintenance Service 114,000 171,000 TOTAL $ 5,333,000 $ 6,240,500 FISCAL YEAR BUDGET 2018-2019 45 OTHER OPERATING EXPENSES Other Operating Expenses budgeted for FY 2018-19 total $618,000 and include professional development, licensing, meeting expenses, and general insurance. The District emphasizes professional growth and leadership and encourages employees to utilize resources made available by the District to continue learning through formal education, certifications, or collaboration with other agencies responsible for delivering similar services to its ratepayers. Following is chart showing the allocation of Other Operating Expenses for fiscal year 2018-19: $220,000Insurance $113,500Memberships& Dues $184,000ProfessionalDevelopment $23,000EducationAssistance $56,500Meetings$21,000EmployeeRecognition 46 EAST VALLEY WATER DISTRICT Outstanding Debt East Valley Water District's debt service payments in 2018-19 will be $4,358,000 on total outstanding debt of $49,907,496 as of June 30, 2018. Outstanding debt issues include the following: • 2010 Refunding Revenue Bonds: Issued to refund all outstanding long-term debt and to provide $16 million for future capital improvements. Bonds outstanding total $26,150,000, bear interest of 3.90% to 5.00%, and are payable out of water and wastewater net revenue. • 2013 Revenue Bonds: Issued to finance the construction of a new administration and operations headquarters. Bonds outstanding total $12,085,000, bear interest of 4.25% to 5.00%, and are payable out of water and wastewater net revenue. Current payments are interest only, with principal amortization scheduled to begin in fiscal year 2021-22. • DWR Loan – Treatment Plant: Borrowed to finance upgrades to treatment technology at the District’s Plant 134. The total loan outstanding is $6,568,167 at 0% interest, and is payable out of water net revenue. • DWR Loans – Assessment Districts: Borrowed to fund consolidation of two failing mutual water companies into District service area. Loans outstanding total $423,196 and bear interest at 0%. Debt service payments are payable from assessments to property owners within the assessment districts. • U.S. Bank Loan: Borrowed to finance construction and implementation of several energy conservation measures. The total loan outstanding is $2,910,551 at an interest rate of 2.3%, and is payable out of guaranteed energy cost savings. • SBVMWD Loan: Borrowed from San Bernardino Valley Municipal Water District, the region’s State Water Project contractor, to finance construction (in progress) of an imported water turnout and hydro-electric generation facility at the District’s Plant 134. The total loan outstanding is $3,870,000, bearing interest at the LAIF apportionment rate, currently 1.51%. Debt service is payable over 10 years out of water net revenue and energy cost savings. • State Water Resources Control Board – SNRC: On June 14, 2018 the District signed a funding agreement with the SWRCB for the construction of a water recycling facility known as the Sterling Natural Resource Center. The funding package includes $6.75 million in grants, and $119.25 million from a 30-year loan at 1.8% interest. The construction period for the project is anticipated to be 24 to 30 months, and the loan balance will grow as reimbursement requests for construction costs are submitted by the District. Annual debt service payments of approximately $5.5 million are payable from wastewater and water net revenue and are expected to begin in FY 2022- 23. FY 2 0 18-19 FY 2 0 19-20 FY 2 0 20 -21 FY 2 0 21 -22 FY 2 0 22-23 FY 2 0 23-24 FY 2 0 24-25 FY 2025 -26 FY 2026 -27 FY 2027 -28 FY 2028 -29 FY 2029 -30 FY 2030 -31 FY 2031 -32 FY 2032 -33 FY 2033 -34 FY 2034 -35 FY 2035 -36 FY 2036 -37 FY 2037 -38 FY 2038 -39 FY 2039 -40 FY 2040 -41 FY 2041 -42 FY 2042 -43 FY 2043 -44 FY 2044 -45 FY 2045 -46 FY 2046 -47 FY 2047 -48 $1M $2M $3M $4M $5M $6M $7M $8M $9M $10M Recycled WaterWater Fund Wastewater Fund Total Debt Service FISCAL YEAR BUDGET 2018-2019 47 A schedule of 2018-19 debt service payments, by issue, is shown in the following schedule: Debt service for fiscal year 2018-19 on all outstanding debt is $4,358,000 - this amount represents 11.6% of the District’s total budget. 2018-19 is third year of a five-year period during which annual debt service payments will exceed $4.2 million. This level of debt service does not affect utility services provided to District ratepayers, but has a direct effect on the number of Capital Projects that can be funded by operating revenues. For example, the District needs 20 million gallons of additional water storage capacity, but must carefully plan for the construction of new reservoirs over a period of five to ten years in order to ensure that essential services and debt service coverage requirements on existing debt can be met. There are currently two reservoirs totaling 5 mg of storage capacity on the Districts Capital Improvement Schedule. The schedule below presents total debt service on existing debt through maturity. WATER FUND WASTEWATER FUND Debt Issue Principal Interest Principal Interest Total 2010 Refunding Revenue Bonds $ 1,400,000 $ 1,065,000 $ 100,000 $ 12,000 $ 2,577,000 2013 Revenue Bonds - 385,000 - 200,000 585,000 DWR Loan-Treatment Plant 244,000 - - - 244,000 DWR Loans - Assessment Districts 19,000 - - - 19,000 US Bank Loan 397,000 58,000 - - 455,000 SBVMWD Loan 430,000 48,000 - - 478,000 TOTAL $ 2,490,000 $ 1,556,000 $ 100,000 $ 212,000 $ 4,358,000 WATER FUND WASTEWATER FUND Fiscal Year Principal Interest Principal Interest Total 2018-2019 $ 2,490,000 $1,556,000 100,000 212,000 $4,358,000 2019-2020 2,564,000 1,473,000 105,000 208,000 4,350,000 2020-2021 2,639,000 1,393,000 110,000 203,000 4,345,000 2021-2022 2,138,000 1,329,000 105,000 198,000 3,770,000 2022-2023 2,193,000 1,272,000 110,000 192,000 3,767,000 2023-2028 8,210,000 5,530,000 635,000 872,000 15,247,000 2029-2033 6,164,000 4,483,000 800,000 700,000 12,147,000 2034-2038 7,370,000 3,262,000 1,000,000 508,000 12,140,000 2039-2043 9,087,000 1,537,000 1,265,000 238,000 12,127,000 2044-2045 2,527,000 51,000 295,000 7,000 2,880,000 TOTAL $ 45,382,000 $21,886,000 $4,525,000 $3,338,000 $75,131,000 The District’s Debt Management Policy stipulates that debt may only be issued to finance capital projects. 48 EAST VALLEY WATER DISTRICT BOND RATINGS Credit risk is the risk that District creditors will suffer financial loss if the District fails to fulfill its obligation to make timely payments to holders of District debt. This risk is measured by the assignment of a rating to the District’s bonds by a nationally recognized credit rating organization. Strong credit ratings provide benefits to District ratepayers in the form of reduced debt service costs. Prudent financial management policies have resulted in a bond rating of AA- from both Standard & Poor’s, and Fitch ratings. Fitch affirmed its rating in April of 2017. The AA- rating is considered a high quality, investment grade rating. DEBT POLICY AND COVERAGE The District’s Debt Management Policy states that debt may only be issued to finance capital projects that have been incorporated into the District’s Capital Improvement Program, and that debt will only be used to finance projects if it is the most cost effective means of doing so, and the District’s credit rating will not be negatively impacted. There is no Policy, or statutory, limitation on the amount of debt that may be issued by the District, however, bond covenants for the District’s 2010 and 2013 Revenue Bonds require an additional bonds test prior to issuing additional obligations payable from Net Operating Revenue. The Revenue Bond documents, as well as loan agreements with the Department of Water Resources and US Bank, also require that the District maintain a debt coverage ratio equal to 1.2 or 120 percent of annual debt service. The FY 2018-19 proposed operating budget provides the net revenue to debt ratios shown in the table below. Net Revenue in excess of annual debt service (excess coverage) provides funding for the District’s CIP and contributions to Replacement Reserves. Water Fund Wastewater Fund Total REVENUE Sales and Services $ 24,060,000 $ 12,863,000 $ 36,923,000 Other Charges 473,000 164,000 637,000 Interest & Miscellaneous Revenue 200,000 88,000 288,000 TOTAL REVENUES 24,733,000 13,115,000 37,848,000 OPERATING EXPENSES Programs 16,507,000 12,168,000 28,675,000 TOTAL OPERATING EXPENSES 16,507,000 12,168,000 28,675,000 NET REVENUE 8,226,000 947,000 9,173,000 Annual Debt Service $ 4,046,000 $ 312,000 $ 4,358,000 Debt Coverage Ratio 2.03 3.04 2.10 FISCAL YEAR BUDGET 2018-2019 49 Unrestricted Net Position EVWD operates two enterprise funds for water and wastewater activities, the District does not have governmental or non-major enterprise funds as part of its operational fund structure. As a result, the District reports Net Position, the excess of assets over liabilities, in three distinct classifications – Invested in Capital Assets, Restricted, and Unrestricted. Unrestricted is the residual after the balances in the other two classifications have been determined, and indicates the level of reserves available for appropriation. The graph below, illustrates the changes in Unrestricted Net Position for the past five years and forecasted balances for 2018-19. Unrestricted Net Position WATER FUND UNRESTRICTED Unrestricted Net Position increased in the years leading up to, and including, fiscal year 2013-14 as a result of rate adjustments adopted in June 2010. In 2014-15 the District implemented Governmental Accounting Standards Board (GASB) statement number 68, whereby unfunded pension liabilities were recorded on the District’s Statement of Net Assets and had a $6.2 million negative impact on Unrestricted Net Position. Also in 2014-15, the District adopted a new tiered rate structure (explained in the Revenue section) to provide revenue stability during California’s severe drought in which strict conservation mandates were imposed by the state. Revenue stability was achieved by the new rates structure, as is evidenced by reserve levels for fiscal year 2015-16 through 2018-19. The table following provides beginning balances, increases and decreases, and ending balances of unrestricted water fund Net Position for the past five years, and projections for the 2018-19 budget year. FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18Projected FY 2018-19Budgeted Water Wastewater $8,178,281 $9,858,657 $4,861,232 $7,539,722 $5,789,742 $1,761,323 $6,786,369 $2,029,652 $11,314,893 $11,267,893 $1,408,652 $1,438,652$2M $4M $6M $8M $10M $12M 50 EAST VALLEY WATER DISTRICT Unrestricted Equity – Water Fund 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Actual 2017-18 Projected 2018-19 Budgeted Beginning Fund Balance $ 7,019,510 $ 8,178,281 $ 4,861,232 $ 5,789,742 $ 6,786,369 $ 11,314,893 Revenue 21,020,934 20,072,542 22,358,720 24,954,835 25,785,000 24,712,000 Operating Expenses (17,670,092)(17,784,263)(20,758,674)(20,450,066)(21,826,650)(22,307,000) Non Operating Expenses (1,887,336) (1,805,275) (1,636,748) (1,573,967) (1,664,000) (1,656,000) Add Back: Depreciation 4,531,972 5,003,670 5,710,092 5,732,847 5,750,000 5,800,000 Contribution to Asset Acquisition (3,395,215) (1,051,372) (2,873,963) (3,097,378) (1,172,826) (4,106,000) Debt Principal Payments (1,441,492) (1,546,491) (1,870,917) (1,926,956)(2,343,000) (2,490,000) Interfund Sale of Land (2,642,688) Prior Period Adjustment - Pensions (6,205,860) ENDING FUND BALANCE $ 8,178,281 $ 4,861,232 $ 5,789,742 $ 6,786,369 $ 11,314,893 $ 11,267,893 WASTEWATER FUND UNRESTRICTED The rate adjustments adopted in June 2010 (mentioned above) also increased revenue for the wastewater fund, but at the same time the District began drawing on reserves to conduct feasibility and environmental studies for a proposed water recycling plant. Reserve spending for preliminary design, land acquisition, and on litigation to defend the project’s environmental impact report continued into 2017-18. In November 2017, a settlement agreement ended the litigation clearing the way for the District to finalize low-interest loan funding with the state of California, with which the District can reimburse most of the reserve borrowing that has occurred since 2013- 14. Wastewater fund equity was also negatively impacted in 2014-15 by GASB 68 for the amount of $1.75 million. The following table provides beginning balances, increases and decreases, and ending balances of unrestricted wastewater fund Net Position for the past five years, and projections for the 2018-19 budget year. Unrestricted Net Position is the residual of the District’s net position after restricted balances, and net position invested in capital assets have been determined. FISCAL YEAR BUDGET 2018-2019 51 Unrestricted Equity – Wastewater Fund 2013-14 Actual 2014-15 Actual 2015-16 Actual 2016-17 Actual 2017-18 Projected 2018-19 Budgeted Beginning Fund Balance $ 11,310,878 $ 9,858,657 $ 7,539,722 $ 1,761,323 $ 2,029,652 $ 1,408,652 Revenue 11,974,164 11,572,011 11,643,042 12,432,000 12,577,000 13,115,000 Operating Expenses (11,521,084)(11,362,076)(11,244,048)(12,395,048) (12,251,000)(12,949,000) Non Operating Expenses (231,053) (210,917) (206,692) (202,000) (218,000) (212,000) Add Back: Depreciation 797,584 773,283 780,967 781,000 781,000 781,000 Contribution to Asset Acquisition (2,391,832) (1,255,865) (6,661,668) (2,895,311) (1,415,000) (605,000) Debt Principal Payments (80,000) (85,000) (90,000) (95,000) (95,000) (100,000) Interfund Sale of Land 2,642,688 Prior Period Adjustment - Pensions (1,750,371) ENDING FUND BALANCE $ 9,858,657 $ 7,539,722 $ 1,761,323 $ 2,029,652 $ 1,408,652 $ 1,438,652 A Cost of Service Analysis (COSA) for both water and wastewater utility rates will be conducted in 2018- 19 to identify rate adjustments needed, if any, to maintain essential utility services, and maintain adequate unrestricted Net Position (reserve) levels. Long Range Financial Plan The long range financial plan provides a forward looking view of the District’s operating funds, allowing District management and others to evaluate the long term sustainability of the operating budget. It also provides a starting point for future decision making regarding the District’s spending and projected revenues. As a water and wastewater utility, the Districts’ long term planning efforts have always included consideration of the age, condition, and efficiency of infrastructure used to deliver services to District customers, along with compliance with water quality regulations. But in recent years, the drought in California has raised the preservation and sustainability of water supplies, and water quality, as prominent issues in planning for future operations. Based on these identified priorities, the District has developed goals that will have a significant impact on the District’s operating budget over the next few years, including: • Cost recovery through user rates versus development fees • Construction of a water recycling plant (Sterling Natural Resource Center) • Find alternative Water Supply and Promote Conservation • Meet all Water Quality Standards • Replacement of aging pipelines and increased water storage capacity The achievement of these goals is subject to certain assumptions, but will remain a priority as they support the District Vision and District Goals and Objectives. 52 EAST VALLEY WATER DISTRICT Goal Assumption Link to District Goals & Objectives User Rates Support Reasonable Costs related to existing customers; Development fees pay for new infrastructure • Water Usage Per capita will not increase due to Conservation efforts • Development will add 200 customers annually to District service area • Practice Transparent and Accountable Fiscal Management • Pursue Alternative Funding Sources Construct Sterling Natural Resource Center for recycled water supply • A funding agreement, including grants and low interest loan will be secured from the State Revolving Fund • Recycled water produced by the SNRC will be sold to the basin watermaster for groundwater recharge • Manage and Identify Methods to Conserve Natural Resources • Actively Seek Alternative Supply Resources • Pursue Alternative Funding Sources Water supply • State Project Water will be available to purchase for basin recharge • Actively Seek Alternative Supply Resources • Strengthen Regional, State and National Partnerships Replace Aging Pipelines • New rate structure will provide revenue stability and adequate funding for pipeline replacement program • Develop Projects and Programs to Ensure Safe and Reliable Services • Dedicate Effort Toward System Maintenance and Modernization Rates and Charges As discussed in the previous section, water and wastewater rate revenue is expected to increase over the next five years due to modest building development and rate adjustments. Water rates were adjusted in March 2015 with a three-year implementation ending in fiscal year 2017-18, therefore, both water and wastewater rates will be reviewed by an independent financial consultant in fiscal year 2018-19. Any rate adjustments proposed by the consultant will be considered in accordance with requirements under California Proposition 218. Other revenue related assumptions built into future projections include: • Water Sales are projected to grow $920,000 or 4.0% over the next five years due to the estimated addition of 50 new utility accounts annually, combined with 1% rate increases. Sales per capita is expected to remain flat as water budget based tiered rates implemented by the District to incentivize consumers to use water efficiently, and the State of California continues to propose regulation that will make water conservation ‘the new normal’. • Meter Charge revenue is expected to grow by $120,000 between FY 2019 and FY 2024 due to the increase in customer accounts mentioned above. • Local Resource Program (LRP) reimbursements will be added as a funding source for the District after completion of the SNRC in FY 2021. The LRP, sponsored by the San Bernardino Valley Municipal Water District, will reimburse reclaimed water producers $210 per acre foot of reclaimed water used for recharge of the Bunker Hill Groundwater Basin. The District anticipates that the SNRC will produce 6,000 acre feet of FISCAL YEAR BUDGET 2018-2019 53 reclaimed water annually, for potential funding of $1.26 million annually. Operating Cost Forecast Operating costs for the District included salaries and benefits, maintenance and operation of the water distribution and wastewater collection systems, contract services and materials and supplies. Salaries are adjusted in accordance with a memorandum of understanding (MOU) with employees – a new three-year MOU, which became effective in July 2017, included the following agreed- upon changes: • 3% Cost of Living Increases for each of the next three years • 2.5% annual step increases, if qualified, until employees reach the top of their salary range. • Performance based incentive payments of up to 5% of base salary. An average of 4% was used for purposes of forecasting. Retirement plan contributions, which include a component based on a percentage of salary, and a fixed component designed to pay down unfunded pension obligations, are expected to increase 10%-15% annually over the next five years as the California Public Employees Retirement System (CalPERS) implements strategies to improve the funding status of the plan overall. Staffing levels are expected to remain constant through fiscal year 2020. However, as construction of the SNRC progresses, an estimated 6 full time employees will be added to operate the facility. Accordingly, recruiting and hiring for these positions will need to begin approximately 18 months prior to completion so staff can be trained on treatment processes. In general, Materials and Contract Services are expected to increase 2% with inflation. However, the scheduled completion of the Sterling Natural Resource Center in June 2021 will create a shift in costs from contracted wastewater treatment, to other costs directly related to operating a water recycling plant, such as solids handling, chemicals, contract services, and materials and supplies. Debt Service Forecast Debt service costs include principal and interest on Revenue Bonds and Loans issued to finance system improvements. Future debt service cost projections include an additional loan from the State Revolving Fund issued to finance the construction of the Sterling Natural Resource Center. The final loan amount will not be determined until the project is complete, however, the additional debt related to this project is expected to increase annual debt service from $3.8 million in FY 2022, to $9.4 million in FY 2023. Revenue Funded Capital Expenditures Forecast Revenue funded capital project spending is projected to average $3.9 million over the next five years. Projects included in the forecast are discussed in the five-year Capital Improvement Program section of this budget. Construction of the Sterling Natural Resource Center water recycling facility will create a new enterprise activity, and accomplish multiple long range District goals. 54 EAST VALLEY WATER DISTRICT Five Year Forecast – FY 2019 through FY 2023 The following financial forecast is presented to provide a general understanding of how long-term goals will affect operating revenue and expenditures over the next five years. Net Position is presented as a single amount, however, for financial reporting purposes, it is allocated to three categories: • Invested in Capital Assets • Restricted • Unrestricted Projections for Unrestricted Net Position are included in a previous section, and it is the Unrestricted Net Position that is available for appropriation in order to balance the annual budget. FORECAST FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 REVENUE Water Sales / Wastewater Collection $ 19,730,000 $ 19,956,787 $ 20,085,000 $ 20,305,000 $ 20,525,000 Wastewater Treatment 8,233,000 8,383,000 8,466,830 8,551,498 8,637,013 Reclaimed Water Sales - - - 1,260,000 1,260,000 Meter Fees 8,960,000 8,990,000 9,020,000 9,050,000 9,080,000 Other Operating Charges 637,000 644,000 644,000 644,000 644,000 Investment Income 220,000 220,000 220,000 220,000 220,000 Other Income 68,000 61,000 61,000 61,000 61,000 TOTAL REVENUE 37,848,000 38,254,787 38,496,830 40,091,498 40,427,013 EXPENDITURES Labor & Benefits 9,829,000 9,845,000 10,243,000 11,851,000 12,312,000 Water Costs 1,067,000 400,000 400,000 400,000 400,000 Contracted Wastewater Treatment 8,233,000 8,383,000 8,466,830 - - Power Costs 1,700,000 1,700,000 1,700,000 2,300,000 2,318,000 Materials and Supplies 1,277,500 1,219,696 1,230,170 1,715,671 1,740,449 Contract Services 5,950,500 5,675,087 5,726,938 7,079,257 7,164,120 Other Operating Expenses 618,000 798,179 809,083 1,035,164 1,049,578 Debt Service 4,358,000 4,350,000 4,345,000 3,770,000 9,293,000 Capital Outlay 1,106,000 600,000 990,000 550,000 600,000 Capital Improvement Program 3,605,000 3,730,000 3,509,000 3,308,000 4,425,000 TOTAL EXPENDITURES 37,744,000 36,700,962 37,420,021 32,009,092 39,302,147 CHANGE IN NET POSITION 104,000 1,553,825 1,076,810 8,082,406 1,124,867 BEGINNING NET POSITION 113,029,877 113,133,877 114,687,702 115,764,512 123,846,918 ENDING NET POSITION $ 113,133,877 $ 114,687,702 $ 115,764,512 $ 123,846,918 $ 124,971,785 CO N S O L I D A T E D FI N A N C I A L S C H E D U L E S BLUE CHALK STICKS Senecio Mandraliscae A spreading succulent native of South Africa, the Senecio Mandraliscae is a winter grower and summer-dormant. Its upward curving foliage grows 3-4 inches tall. Consolidated Financial Schedules FISCAL YEAR BUDGET 2018-2019 57 Consolidated Financial Summary FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change REVENUES 4100 Water Sales $ 14,556,339 $ 14,500,000 $ 15,000,000 $ 15,100,000 $ 600,000 4% 4200 Meter Charges 8,944,652 8,845,000 8,845,000 8,960,000 115,000 1% 4301 Penalties 473,347 485,500 485,500 544,000 58,500 12% 4400 WW Collection Charges 4,286,594 4,545,000 4,545,000 4,630,000 85,000 2% 4500 WW Treatment Charges 7,165,655 7,900,000 7,900,000 8,233,000 333,000 4% 4605 Other Operating Charges 701,596 201,500 201,500 121,000 (80,500)-40% 4701 Interest Income 103,502 97,000 97,000 220,000 123,000 127% 4703 Energy Incentives/ Rebates - - - - - 4704 Miscellaneous Revenue 42,973 50,000 50,000 40,000 (10,000)-20% TOTAL REVENUES $ 36,274,658 $ 36,624,000 $ 37,124,000 $ 37,848,000 $ 1,224,000 3% An in-depth District-wide overview of the FY 2017-18 budget. An in-depth District-wide overview of the FY 2017-18 budget. CONSOLIDATED FINANCIAL SCHEDULES Overview of revenues and other financing sources and expenditures 58 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change EXPENSES – OPERATING BY PROGRAM 1000 Governing Board $ 136,613 $ 229,000 $ 229,000 $ 337,000 $ 108,000 47% 2000 General Administration 1,106,502 1,201,000 1,367,000 1,258,000 57,000 5% 2100 HR/Risk Management 784,357 845,000 892,000 990,000 145,000 17% 2200 Public Affairs 632,684 828,000 890,000 1,142,000 314,000 38% 2300 Conservation 655,982 575,000 575,000 593,000 18,000 3% 3000 Finance 1,158,039 1,182,000 1,256,000 1,131,000 (51,000)-4% 3200 Information Technology 750,763 963,000 971,000 1,009,000 46,000 5% 3300 Customer Service 1,547,563 1,749,000 1,811,000 1,786,000 37,000 2% 3400 Meter Services 334,573 397,000 407,000 283,000 (114,000)-29% 4000 Engineering 1,321,765 1,527,000 1,586,000 1,521,000 (6,000)0% 5000 Water Production Admin 432,791 469,000 469,000 494,000 25,000 5% 5000-51 Source of Supply 2,926,045 2,654,000 2,654,000 2,791,000 137,000 5% 5000-52 Pumps & Boosters 596,610 726,000 726,000 727,000 1,000 0% 5000-54 Trans & Distribution 243,480 223,000 290,000 366,000 143,000 64% 5100 Water Treatment 644,138 890,000 1,061,000 848,000 (42,000)-5% 5200 Water Quality 367,491 410,000 425,000 434,000 24,000 6% 6000 Maintenance Admin 214,836 220,000 246,000 345,000 125,000 57% 6100 Water Maintenance 1,857,848 2,021,000 2,044,000 2,204,000 183,000 9% 6200 Wastewater Maintenance 7,592,044 8,593,000 8,625,000 8,996,000 403,000 5% 7000 Facilities Maintenance 781,605 776,000 826,000 961,000 185,000 24% 7100 Fleet Maintenance 611,011 516,000 564,000 459,000 (57,000)-11% SUBTOTAL OPERATING EXPENSES 24,696,740 26,994,000 27,914,000 28,675,000 1,681,000 6% EXPENSES – OTHER Debt Service 3,560,567 4,315,000 4,315,000 4,358,000 43,000 1% Capital Outlay 637,517 611,000 611,000 1,106,000 495,000 81% Capital Improvement 3,089,678 4,287,000 4,345,000 3,605,000 (682,000)-16% Transfer to Reserves 4,290,156 417,000 - 74,000 (343,000)-82% Transfer from Reserves - - (61,000) 30,000 30,000 100% SUBTOTAL OTHER EXPENSES 11,577,918 9,630,000 9,210,000 9,173,000 (457,000)-5% NET $ - $ - $ - $ - $ - FISCAL YEAR BUDGET 2018-2019 59 ITEMIZED EXPENSE SUMMARY FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $6,191,739 $6,182,600 $6,213,000 $6,323,000 $140,400 2% 5102 Temporary Labor 54,335 15,000 15,000 - (15,000)-100% 5103 Overtime 328,723 292,000 307,000 352,000 60,000 21% 5104 Standby 36,948 40,000 40,000 35,000 (5,000)-13% 5200 Benefits 2,305,631 2,873,000 3,382,000 2,828,000 (45,000)-2% PERSONNEL TOTAL 8,917,376 9,402,600 9,957,000 9,538,000 135,400 1% WATER SUPPLY 6101 Purchased Water $1,012,841 $500,000 $500,000 $500,000 - 0% 6102 Replenishment 160,680 163,000 163,000 445,000 282,000 173% 6103 Water Assessment 135,938 138,000 138,000 122,000 (16,000)-12% WATER SUPPLY TOTAL 1,309,459 801,000 801,000 1,067,000 266,000 33% OPERATING EXPENSES 6201 Materials & Supplies 575,664 613,000 612,000 722,000 109,000 18% 6202 Tools 53,915 38,000 38,000 40,000 2,000 5% 6203 Office Supplies 43,784 46,000 46,000 41,000 (5,000)-11% 6204 Chemicals 261,127 345,000 345,000 350,000 5,000 1% 6205 Conservation Rebates 287,837 200,000 200,000 200,000 - 0% 6301 Contract Services 1,807,017 2,499,000 2,750,000 2,876,000 377,000 15% 6302 Banking Services 264,075 323,000 323,000 326,000 3,000 1% 6303 Printing & Publishing 115,514 103,000 103,000 289,000 186,000 181% 6304 Legal Services 193,794 281,000 381,000 256,000 (25,000)-9% 6305 Treatment Services 7,165,655 7,900,000 7,900,000 8,233,000 333,000 4% 6306 Rents & Leases 15,581 - - 15,000 15,000 - 6307 Uniforms 61,917 74,000 77,000 72,000 (2,000)-3% 6308 Billing Services 45,540 52,000 52,000 52,000 - 0% 6309 Shut Off Notice Services 360,144 359,000 359,000 359,000 - 0% 6310 Street Services 188,665 400,000 400,000 400,000 - 0% 6311 Landscape Services 156,722 145,000 145,000 145,000 - 0% 6312 Janitorial Services $ 74,816 $ 132,000 $ 142,000 $ 140,000 $ 8,000 6% 60 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6314 Litigation Services $ - $ - $ - $ 50,000 $ 50,000 - 6401 Utilities 16,260 26,000 26,000 24,000 (2,000)-8% 6402 Telephone 133,166 137,000 137,000 132,000 (5,000)-4% 6403 Electricity 1,622,686 1,820,000 1,820,000 1,820,000 - 0% 6404 Fuel 106,478 125,000 125,000 125,000 - 0% 6405 Permits 187,512 220,000 220,000 293,000 73,000 33% 6406 Postage 127,157 208,000 208,000 203,000 (5,000)-2% 6501 Memberships 109,592 110,000 110,000 113,000 3,000 3% 6502 Prof Development 105,163 181,000 182,000 184,000 3,000 2% 6503 Education Assistance 1,290 20,000 21,000 23,000 3,000 15% 6504 Meetings 19,133 43,400 44,000 56,000 12,600 29% 6505 Employee Recognition 14,020 19,000 19,000 20,000 1,000 5% 6701 General Insurance 188,624 210,000 210,000 210,000 - 0% 6702 Insurance Claims 7,006 10,000 10,000 10,000 - 0% 6703 Cash Over/Short 557 1,000 - - (1,000)-100% 6704 Bad Debt - - 1,000 1,000 1,000 100% 6705 OPEB Retirees 159,494 150,000 150,000 290,000 140,000 93% OPERATING EXPENSES TOTAL 14,469,905 16,790,400 17,156,000 18,070,000 1,279,600 8% TOTAL EXPENSES $ 24,696,740 $ 26,994,000 $ 27,914,000 $ 28,675,000 $ 1,681,000 6% Operating expenses are identified and accounted for at the Program level. WA T E R F U N D DOUBLE YELLOW DAYLILY  Hemerocallis ‘Betty Woods’ Slightly-fragrant flowers, Double Yellow Daylilies bloom in spring through summer. A drought tolerant native from Asian that can grow 2-4 feet tall. Water Fund FISCAL YEAR BUDGET 2018-2019 63 Water Fund East Valley Water District understands the importance of preserving California’s water supplies, especially in times of drought, and has taken many steps to encourage water use efficiency. The water budget based rates promote water efficiency and is based on the cost of service; is equitable and fair; and promotes sustainable behavior change. Water budget based rates structure has been recognized by the SWRCB for producing superior water savings and is an approved alternative approach for compliance with current California Drought Emergency Conservation Regulations. RATES EVWD bills all customers on a monthly basis for water usage. In March 2015, the Board of Directors unanimously approved restructuring the water rates from a uniform structure to water budget based rates to encourage efficient water use and secure the District’s long-term financial stability. The Board’s decision also included the approval of a three-year schedule of changes to the District’s water rates. Water budget based rates are designed to treat customers fairly by meeting each individual customer’s unique needs. Its intent is to determine the quantity of water that would be considered an efficient level of water use. EVWD considers multiple factors in calculating each customer’s monthly water budget: • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses/Live Stock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather The rates have been designed with a three-tier structure, each developed based on the District’s cost of service to provide three different sources and uses of water. Based on the new rate structure, approximately 60 percent of the District’s revenue requirements may be captured from the amount of water used. Since the adoption of water budget based rates, the District has experienced success in reducing water consumption and stabilizing revenues to ensure our fixed operational cost are covered. During FY 2017- 18 the Board approved a modification to the final phase in the three-year rate increase. For FY 2018- 19 no increase in water rates has been adopted. Monthly Meter Charges METER SIZE FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 5/8 in.$ 20.96 $ 23.06 $ 23.06 $ 23.06 3/4 in. 26.61 29.27 29.27 29.27 1 in. 37.92 41.71 41.71 41.71 1.5 in. 66.19 72.81 72.81 72.81 2 in. 100.12 110.13 110.13 110.13 3 in. 207.54 228.30 228.30 228.30 4 in. 365.85 402.44 402.44 402.44 6 in. 744.67 819.14 819.14 819.14 8 in.$ 1,366.62 $ 1,503.25 $ 1,503.25 $ 1,503.25 64 EAST VALLEY WATER DISTRICT Commodity Charges COMMODITY RATES FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Tier 1 $1.73 $1.73 $1.73 $1.73 Tier 2 2.46 2.46 2.46 2.46 Tier 3 3.44 3.44 3.44 3.44 Monthly Fire Line Service Charges METER SIZE FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 1 in.$8.78 $8.78 $8.78 $8.78 1.5 in.13.18 13.18 13.18 13.18 2 in.17.57 17.57 17.57 17.57 3 in.26.35 26.35 26.35 26.35 4 in.35.14 35.14 35.14 35.14 6 in.52.70 52.70 52.70 52.70 8 in.70.27 70.27 70.27 70.27 10 in.87.84 87.84 87.84 87.84 REVENUES Water revenues are generated through the following avenues: • Fixed Meter Charges • Water Consumption Sales • Penalties ―Late Fees ―Shut Off Notice ―Reconnect Fees • Initiation of Service Fees • Energy Incentives • Miscellaneous Reimbursements ―District property damage ―In Lieu Programs • Interest In order to be as accurate as possible, staff evaluated and considered external factors that would have any impact on revenue projections: • Number of accounts by class • Total irrigable landscaped area in the District service area • Historical water usage • State mandates • Operational changes FISCAL YEAR BUDGET 2018-2019 65 A careful analysis of the District’s water accounts and usage were considered as the foundation for projecting water sales. To determine Tier 1 usage, each residential account was assumed to receive 10 units of Tier 1 water. Next, staff used GIS data to provide the total square footage of irrigable landscape and converted the efficient amount of water necessary. Tier 3 water was based on historical usage for irrigation accounts. Other classification includes temporary water meters used mainly for construction. The table below reflects FY 2017-18 assumptions for revenue projections. The number of accounts does not include fire services. 4%Other Charges Sources of Revenue Water Sales (Acre Feet) CLASS NO. OF ACCOUNTS TIER 1 TIER 2 TIER 3 TOTAL TOTAL SALES Residential 19,883 4,903 3,228 895 9,026 $ 8,493,000 Multi-Family 474 2,160 852 475 3,487 3,253,000 Commercial 681 1,125 94 147 1,366 1,168,000 Irrigation 322 - 1,194 606 1,800 2,186,000 TOTALS 21,360 8,188 5,368 2,123 15,679 $ 15,100,000 Single family and multi-family residential customers account for 78% of the District’s water sales. 58%WaterSales38%MeterCharges 66 EAST VALLEY WATER DISTRICT Meter Charge METER SIZE NO. OF SERVICES RATE TOTAL 5/8 in.4,202 $ 23.06 $ 1,163,000 3/4 in.12,327 29.27 4,330,000 1 in.4,175 41.71 2,090,000 1.5 in.262 72.81 229,000 2 in.287 110.13 379,000 3 in.62 228.30 170,000 4 in.22 402.44 106,000 6 in.12 819.44 118,000 8 in.11 1,503.28 200,000 Fire Service 1.5 in.10 13.18 2,000 Fire Service 4 in.50 35.14 21,000 Fire Service 6 in.124 52.70 85,000 Fire Service 8 in.55 70.27 51,000 Fire Service 10 in.13 87.84 16,000 TOTALS 21,612 $ 8,960,000 EXPENSES Expenses are based on the cost to provide water to meet customer demands. The table below projects the amount of water to be produced for FY 2018- 19. The amount of water produced is more than the amount of water sold to account for normal system water loss. The continued severity of the drought has prompted the District to put forth significant effort towards the Conservation Program. This Program is committed to assisting customers with conservation efforts through the continuance of the rebate programs and instructor-led seminars and demonstrations. Staff continues to review and enhance processes to ensure optimal performance. However, due to the new rate structure, cost allocations for the Information Technology and Customer Service Departments were shifted to the Water Fund. Previously, those costs were allocated evenly between the Water and Wastewater Fund. It has been determined that budget based rates require a significant amount of time and commitment from staff therefore justifying the shift in expenses. Moreover, due to the uncertainty of revenue income, staff has reprioritized programs to ensure critical programs continue while additional services can be re-evaluated at mid-year. CONCLUSION The District strives to provide safe and reliable water delivery services. The District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization. The District maintains its commitment to investing in critical infrastructure to ensure the future of its thriving community. Due to the variable factors, mid-year review will be an important time to review projections and program expenditures to make adjustments as necessary. FISCAL YEAR BUDGET 2018-2019 67 Water Production (Acre Feet) SOURCE OF SUPPLY FY 2015-16 Actual FY 2016-17 Actual FY 2017-18 Projected FY 2018-19 Budgeted Ground Water 16,164 12,928 13,315 12,649 Surface Water 2,330 3,913 3,700 3,515 Purchased 174 606 800 800 TOTALS 18,668 17,447 17,815 16,964 14%Source ofSupply 3%Pumps &Boosters 6%CapitalExpenditures 4%Treatment 9%Transmission &Distribution 7%CustomerService 29%Administration 17%Debt Service 11%ReserveContribution Water Fund Expenses by Cost Center 68 EAST VALLEY WATER DISTRICT FY 2018-19 Water Fund Proposed Budget FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change REVENUES 4100 Water Sales $ 14,556,339 $ 14,500,000 $ 16,342,378 $ 15,100,000 $ 600,000 4% 4200 Meter Charges 8,944,652 8,845,000 8,845,000 8,960,000 115,000 1% 4301 Penalties 81,664 145,000 145,000 380,000 235,000 162% 4303 Disconnect Notice Charge 349,207 300,500 300,500 - (300,500)-100% 4605 Other Operating Charges 539,626 131,500 131,500 93,000 (38,500)-29% 4701 Interest Income 73,315 75,000 75,000 160,000 85,000 113% 4703 Energy Incentives/ Rebates - - - - - - 4704 Miscellaneous Revenue 42,973 50,000 50,000 40,000 (10,000)-20% TOTAL REVENUES 24,587,776 24,047,000 25,889,378 24,733,000 686,000 3% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 Regular Labor 387,859 358,000 358,000 261,000 (97,000)-27% 5103 Overtime 28,913 30,000 35,000 32,000 2,000 7% 5200 Benefits 89,094 151,000 204,000 110,000 (41,000)-27% 6101 Purchased Water 1,012,841 500,000 500,000 500,000 - 0% 6102 Groundwater Replenishment 160,680 163,000 163,000 445,000 282,000 173% 6103 Water Assessment 135,938 138,000 138,000 122,000 (16,000)-12% 6201 Materials & Supplies 27,228 63,000 63,000 61,000 (2,000)-3% 6204 Chemicals 92,592 150,000 150,000 150,000 - 0% 6301 Contract Services 120,564 222,000 227,000 271,000 49,000 22% 6311 Landscape Services 70,580 40,000 40,000 40,000 - 0% 6402 Telephone 666 - - - - - 6403 Electricity 1,023,896 1,000,000 1,000,000 1,000,000 - 0% 6405 Permits 72,329 100,000 100,000 100,000 - 0% 6504 Meetings - 1,000 1,000 1,000 - 0% SOURCE OF SUPPLY TOTAL 3,223,180 2,916,000 2,979,000 3,093,000 177,000 6% PUMPS & BOOSTERS 5101 Regular Labor 84,747 92,000 92,000 86,000 (6,000)-7% 5103 Overtime 12,419 5,000 5,000 10,000 5,000 100% 5200 Benefits 19,108 34,000 46,000 36,000 2,000 6% 6201 Materials & Supplies 22,988 25,000 25,000 23,000 (2,000)-8% 6301 Contract Services $ 37,280 $ 80,000 $ 80,000 $ 81,000 $ 1,000 1% FISCAL YEAR BUDGET 2018-2019 69 FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6311 Landscape Services $ - $ - $ 35,000 $ 35,000 $ 35,000 0% 6403 Electricity 433,612 500,000 500,000 500,000 - 0% PUMPS & BOOSTERS TOTAL 610,154 736,000 783,000 771,000 35,000 5% TREATMENT 5101 Regular Labor 222,087 237,000 237,000 214,000 (23,000)-10% 5103 Overtime 12,216 10,000 18,000 25,000 15,000 150% 5200 Benefits 78,410 92,000 115,000 95,000 3,000 3% 6201 Materials & Supplies 13,910 15,000 20,000 23,000 8,000 53% 6204 Chemicals 129,450 150,000 150,000 150,000 - 0% 6301 Contract Services 97,208 186,000 379,000 249,000 63,000 34% 6301 Uniforms - - - 2,000 2,000 - 6311 Landscape Services 20,723 14,000 14,000 14,000 - 0% 6401 Utilities 1,939 15,000 15,000 10,000 (5,000)-33% 6402 Telephone 12,211 - - - - - 6403 Electricity 77,715 200,000 200,000 200,000 - 0% 6405 Permits - - - - - - TREATMENT TOTAL 665,869 919,000 1,148,000 982,000 63,000 7% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 1,008,010 964,000 964,000 1,172,000 208,000 22% 5103 Overtime 195,992 160,000 115,000 163,000 3,000 2% 5200 Benefits 417,563 481,000 553,000 560,000 79,000 16% 6201 Materials & Supplies 241,832 220,000 220,000 240,000 20,000 9% 6202 Tools 26,128 16,000 16,000 16,000 - 0% 6204 Chemicals 39,085 45,000 45,000 50,000 5,000 11% 6301 Contract Services 86,627 118,000 118,000 124,000 6,000 5% 6307 Uniforms 20,394 20,000 20,000 20,000 - 0% 6310 Street Services 188,665 400,000 400,000 400,000 - 0% 6405 Permits 18,863 - - - - 0% 6406 Postage 2,224 2,000 2,000 2,000 - 0% 6503 Education Assistance - 7,000 7,000 5,000 (2,000)- 6504 Meetings - - - - - - TRANS & DIST TOTAL 2,245,383 2,433,000 2,460,000 2,752,000 319,000 13% CUSTOMER SERVICE 5101 Regular Labor 538,508 558,400 558,400 511,200 (47,200)-8% 5102 Temporary Labor 13,850 2,100 2,100 - (2,100)-100% 5103 Overtime 11,333 23,500 23,500 13,500 (10,000)-43% 5200 Benefits $ 246,131 $ 304,400 $ 344,300 $ 259,900 $ (44,500)-15% 70 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6201 Materials & Supplies $ 5,572 $ 8,600 $ 8,600 $ 5,500 $ (3,100)-36% 6202 Tools 164 1,000 1,000 3,000 2,000 200% 6203 Office Supplies 1,439 2,800 2,800 2,100 (700)-25% 6301 Contract Services 62,164 86,200 93,200 95,300 9,100 11% 6302 Banking Services 176,821 212,100 212,100 214,200 2,100 1% 6303 Printing & Publishing 2,441 3,500 3,500 7,000 3,500 100% 6304 Legal Services 3,997 3,500 3,500 3,500 - 0% 6306 Rents & Leases 3,500 - - - - - 6307 Uniforms 5,186 7,200 10,200 5,800 (1,400)-19% 6308 Billing Services 31,878 36,400 36,400 36,400 - 0% 6309 Shut Off Notice Services 360,144 359,000 359,000 359,000 - 0% 6402 Telephone 3,594 6,200 6,200 5,600 (600)-10% 6406 Postage 66,616 105,700 105,700 107,100 1,400 1% 6502 Professional Development 857 9,800 9,800 9,800 - 0% 6503 Education Assistance 513 700 700 - (700)-100% 6504 Meetings 246 1,400 2,000 2,000 600 43% 6703 Cash Over/Short 390 700 - - (700)-100% CUSTOMER SERVICE TOTAL 1,535,344 1,733,200 1,783,000 1,640,900 (92,300)-5% ADMINISTRATION 5101 Regular Labor 2,628,506 2,580,400 2,321,800 2,621,200 40,800 2% 5102 Temporary Labor 25,213 8,400 8,400 - (8,400)-100% 5103 Overtime 38,280 44,000 47,500 47,800 3,800 9% 5104 Standby 30,232 34,000 34,000 33,000 (1,000)-3% 5200 Benefits 1,002,002 1,154,500 1,392,200 1,120,300 (34,200)-3% 6201 Materials & Supplies 166,263 180,300 176,100 212,200 31,900 18% 6202 Tools 15,699 12,700 12,700 13,100 400 3% 6203 Office Supplies 31,755 31,500 23,800 28,900 (2,600)-8% 6205 Conservation Rebates 287,837 200,000 200,000 200,000 - 0% 6301 Contract Services 910,625 1,146,800 1,144,500 1,305,100 158,300 14% 6302 Banking Services 8,032 14,000 - 14,000 - 0% 6303 Printing & Publishing 96,626 83,600 82,900 191,500 107,900 129% 6304 Legal Services 133,012 193,500 271,500 175,000 (18,500)-10% 6306 Rents & Leases 7,407 - - 10,500 10,500 0% 6307 Uniforms 27,805 34,500 32,400 32,100 (2,400)-7% 6311 Landscape Services 45,793 63,700 39,200 39,200 (24,500)-38% 6312 Janitorial Services $ 52,371 $ 92,400 $ 99,400 $ 96,400 $ 4,000 4% FISCAL YEAR BUDGET 2018-2019 71 FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6314 Litigation Services $ - $ - $ - $ 35,000 $ 35,000 0% 6401 Utilities 10,025 7,700 7,700 9,800 2,100 27% 6402 Telephone 84,549 94,800 92,700 95,400 600 1% 6403 Electricity 61,224 84,000 84,000 84,000 - 0% 6404 Fuel 74,535 87,500 87,500 112,500 25,000 29% 6405 Permits 67,424 84,000 84,000 135,100 51,100 61% 6406 Postage 21,850 44,500 43,800 34,600 (9,900)-22% 6501 Memberships & Dues 77,266 78,500 75,700 80,600 2,100 3% 6502 Professional Development 75,771 119,300 108,100 121,200 1,900 2% 6503 Education Assistance 390 9,900 10,600 12,500 2,600 26% 6504 Meetings 13,707 29,600 26,800 35,100 5,500 19% 6505 Employee Recognition 9,814 13,300 13,300 14,000 700 5% 6701 General Insurance 132,037 147,000 147,000 147,000 - 0% 6702 Insurance Claims 4,904 7,000 7,000 7,000 - 0% 6704 Bad Debt - - - 1,000 1,000 0% 6705 OPEB Retirees 111,646 105,000 105,000 203,000 98,000 93% ADMINISTRATION TOTAL 6,252,600 6,786,400 6,779,600 7,268,100 481,700 7% TOTAL OPERATING EXPENSES 14,532,530 15,523,600 15,932,600 16,507,000 983,400 6% OTHER USES 7101 Debt Principal 1,630,602 2,343,000 2,343,000 2,496,000 153,000 7% 7102 Debt Interest 1,634,047 1,664,000 1,659,000 1,550,000 (114,000)-7% 7500 Reserve Contribution 1,413,255 515,000 417,000 74,000 (441,000)-86% 8101 Capital Outlay 627,827 435,100 480,000 931,000 495,900 114% 8999 Capital Improvement Program 2,061,246 2,780,000 3,305,000 3,175,000 395,000 14% TOTAL OTHER USES 7,366,977 7,737,100 8,204,000 8,226,000 488,900 6% SUMMARY Total Revenue 24,587,776 24,047,000 25,889,378 24,733,000 686,000 3% Total Operating Expenses 14,532,530 15,523,600 15,932,600 16,507,000 983,400 6% Total Other Expenses 7,366,977 7,737,100 8,204,000 8,226,000 488,900 6% NET $ 2,688,269 $ 786,300 $ 1,752,778 $ - $ (786,300)0% 72 EAST VALLEY WATER DISTRICT Revenues Operating Expenses FY 2012-13Actual FY 2013-14Actual FY 2014-15Actual FY 2015-16Actual FY 2016-17Actual FY 2017-18Projected FY 2018-19Budgeted $5M $10M $15M $20M $25M $10,997,073 $20,385,046 $10,997,073 $12,275,670 $12,915,690 $14,532,530 $16,367,600 $16,507,000 $20,385,046 $23,120,539 $19,879,330 $24,587,776 $24,547,000 $24,733,000 Water Fund Revenues Vs. Expenses The District delivers more than 15 million gallons of water daily through 293 miles of water distribution pipeline. WA S T E W A T E R FU N D YARROW Achillea Millefolium In antiquity, the Achillea Millefolium was used or staunching the flow of blood from wounds. A native of Europe, western Asia and North America, it tolerates hot, humid summers and drought. Wastewater Fund FISCAL YEAR BUDGET 2018-2019 75 Wastewater Fund The Wastewater Fund pays for all activities related to the operations and maintenance of the wastewater collection infrastructure as well as the treatment of wastewater. All treatment charges collected from customers are remitted to the City of San Bernardino Municipal Water Department. RATES There are two sets of rates that make up the Wastewater Charge: 1. East Valley Water District Collection System Charge that includes conveyance and maintenance of the wastewater mains and; 2. City of San Bernardino Wastewater Treatment Charge that includes the treatment and disposal of waste. Each set of rates has two components: 1. System Charge based on customer type, Residential or Commercial. 2. Service Charge based on the amount and concentration of the wastewater discharged into the wastewater system. Amount and concentration have a direct impact to the entire wastewater system and treatment facility. The District’s service area for wastewater is divided into two regions with City Creek being the identify- ing landmark. Residences and businesses west of City Creek are charged a different rate than those east of City Creek due to the timing of development and the hydraulics of the system. The adopted rates by customer class are listed in the rate tables below. RESIDENTIAL East Valley Water District bills residential customers a monthly wastewater charge based on the number of dwelling units, up to four units, per property. Properties with four or more units are classified as multi-family. The table below identifies the number of services and the wastewater charges per month. COMMERCIAL The District bills commercial customers on a monthly basis for wastewater. The charge consists of four components—two flat rates and two consumption based rates. The two flat rates are EVWD’s system charge and the City of San Bernardino’s treatment charge. The two consumption based rates are for EVWD’s Collection Charge per hundred cubic feet (HCF) and the City of San Bernardino’s Treatment Charge per HCF. Additionally, the consumption based rates are calculated using the following formula [($.55/HCF EVWD Collection Charge + City of San Bernardino Treatment Charge) x HCF used]. Shown below is a schedule of commercial wastewater rates for FY 2018-19. Residential Wastewater Rates RESIDENTIAL NUMBER OF SERVICES COLLECTION CHARGE TREATMENT CHARGE TOTAL MONTHLY CHARGE West of City Creek 13,274 $ 15.36 $ 21.55 $ 36.91 East of City Creek 5,301 17.36 21.55 38.91 Commercial Wastewater Rates COMMERCIAL CUSTOMER EVWD SYSTEM COLLECTION CHARGE CITY OF SAN BERNARDINO TREATMENT CHARGE EVWD Commercial Charge Multi-Family (4+ Units), Mobile HP Non-Residential Customer Classes $ 3.90 $ 1.97 $ 3.52 76 EAST VALLEY WATER DISTRICT REVENUES Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services. The District anticipates a small increase in revenue related to the assessment of wastewater collection charges to vacant homes. In addition, the City of San Bernardino has adopted rate increases for treatment. Those revenues will be remitted to the City of San Bernardino, therefore having no impact on District Operations. Sources of Revenue2%Other Charges Volumetric Rates CUSTOMER TYPE EVWD SYSTEM COLLECTION CHARGE $/HCF CITY OF SAN BERNARDINO TREATMENT CHARGE $/HCF WEST OF CITY CREEK Multi-Family 0.55 1.53 Commercial/Retail/Dry Cleaners 0.55 2.55 Restaurants/Hotels 0.55 3.28 Laundromats/Government/Office 0.55 1.83 Building/Motels 0.55 1.33 Schools/Churches 0.55 1.63 Convalescent Homes 0.55 1.83 Office Buildings/Motels 0.55 1.58 Auto Repair/Service/Car wash 0.55 1.58 EAST OF CITY CREEK Multi-Family 0.64 1.53 Commercial/Retail/Dry Cleaners 0.64 2.55 Restaurants/Hotels 0.64 3.28 Laundromats/Government 0.64 1.83 Schools/Churches 0.64 1.33 Convalescent Homes 0.64 1.63 Office Buildings/Motels 0.64 1.83 Auto Repair/Service/Car wash 0.64 1.58 36%WastewaterCollectionCharges 62%WastewaterTreatmentCharges FISCAL YEAR BUDGET 2018-2019 77 EXPENSES Operating expenses have remained the same overall in the Wastewater Fund. The District continues to conduct preventive maintenance programs on the wastewater mains such as videoing the lines and cleaning the lines on a regular schedule. Additionally, staff has invested more time and efforts into the spot repairs of the mains when sags and cracks are found in the lines when reviewing video tapes of the wastewater system. With the implementation of Water Budget Based Rates, costs associated with Customer Service and Information Technology were shifted to the Water Fund because of increased efforts to administer the new tiered rates. The District continues to move forward with the Sterling Natural Resource Center, a facility that will create up to 10 million gallons per day of recycled water. Completion of the SNRC will mitigate the impacts of future droughts by providing a long term reliable water supply. This $126 million project is anticipated to begin construction in FY 2018-19. CONCLUSION The Wastewater Fund is balanced, however, a rate study must be conducted to ensure proper rates are charged to fund future capital improvement projects and that the District continues to meet debt service obligations as set forth in the bond covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Board of Directors on a quarterly basis. 3%CustomerService 3%Debt Service 5%Transmission &DistributionWastewater Fund Expenses by Cost Center 19%Administration 62%Treament 6%ReserveContribution 2%Capital 78 EAST VALLEY WATER DISTRICT FY 2018-19 Wastewater Fund Proposed Budget FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change REVENUES 4301 Late Payment Fee $ 42,476 $ 40,000 $ 40,000 $ 164,000 $ 124,000 310% 4400 Wastewater Collection Charges 4,286,594 4,545,000 4,650,970 4,630,000 85,000 2% 4500 Wastewater Treatment Charges 7,165,655 7,900,000 8,578,636 8,233,000 333,000 4% 4605 Other Operating Charge 161,970 70,000 70,000 28,000 (42,000)-60% 4701 Interest Income 30,187 22,000 22,000 60,000 38,000 173% TOTAL REVENUES 11,686,882 12,577,000 13,361,606 13,115,000 538,000 4% OPERATING EXPENSES TREATMENT 6305 Treatment Services 7,165,655 7,900,000 7,900,000 8,233,000 333,000 4% TREATMENT TOTAL 7,165,655 7,900,000 7,900,000 8,233,000 333,000 4% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 226,137 280,000 280,000 290,000 10,000 4% 5103 Overtime 13,576 3,000 35,000 45,000 42,000 1400% 5200 Benefits 36,186 144,000 144,000 146,000 2,000 1% 6201 Materials & Supplies 28,847 30,000 30,000 31,000 1,000 3% 6202 Tools 6,362 5,000 5,000 5,000 - 0% 6301 Contract Services 113,935 228,000 228,000 243,000 15,000 7% 6307 Uniforms 1,346 3,000 3,000 3,000 - 0% TRANS & DIST TOTAL 426,389 693,000 725,000 763,000 70,000 10% CUSTOMER SERVICE 5101 Regular Labor 135,639 141,600 141,600 142,800 1,200 1% 5102 Temporary Labor 5,936 900 900 - (900)-100% 5103 Overtime 1,598 1,500 1,500 1,500 - 0% 5200 Benefits 65,200 72,600 86,700 77,100 4,500 6% 6201 Materials & Supplies 1,794 2,400 2,400 1,500 (900)-38% 6202 Tools - - - - - 0% 6203 Office Supplies 617 1,200 1,200 900 (300)-25% 6301 Contract Services 24,392 34,800 37,800 38,700 3,900 11% 6302 Banking Services 75,780 90,900 90,900 91,800 900 1% 6303 Printing & Publishing 1,046 1,500 1,500 3,000 1,500 100% 6304 Legal Services 1,713 1,500 1,500 1,500 - 0% 6306 Rents & Leases 1,500 - - - - 0% 6307 Uniforms $ 849 $ 1,800 $ 1,800 $ 1,200 $ (600)-33% FISCAL YEAR BUDGET 2018-2019 79 FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6308 Billing Services $ 13,662 $ 15,600 $ 15,600 $ 15,600 $ - 0% 6402 Telephone 1,134 1,800 1,800 2,400 600 33% 6406 Postage 28,550 45,300 45,300 45,900 600 1% 6502 Professional Development 367 4,200 4,200 4,200 - 0% 6503 Education Assistance 220 300 300 - (300)-100% 6703 Cash Over/Short 167 300 - - (300)-100% CUSTOMER SERVICE TOTAL 360,164 418,200 435,000 428,100 9,900 2% ADMINISTRATION 5101 Regular Labor $ 960,246 $ 971,200 $ 1,260,200 $ 1,024,800 $ 53,600 6% 5102 Temporary Labor 9,336 3,600 3,600 - (3,600)-100% 5103 Overtime 14,396 15,000 26,500 14,200 (800)-5% 5104 Standby 6,716 6,000 6,000 2,000 (4,000)-67% 5200 Benefits 351,937 439,500 496,800 423,700 (15,800)-4% 6201 Materials & Supplies 67,230 68,700 66,900 124,800 56,100 82% 6202 Tools 5,562 3,300 3,300 2,900 (400)-12% 6203 Office Supplies 9,973 10,500 18,200 9,100 (1,400)-13% 6301 Contract Services 354,222 397,200 442,500 468,900 71,700 18% 6302 Banking Services 3,442 6,000 20,000 6,000 - 0% 6303 Printing & Publishing 15,401 14,400 15,100 87,500 73,100 508% 6304 Legal Services 55,072 82,500 104,500 76,000 (6,500)-8% 6306 Rents & Leases 3,174 - - 4,500 4,500 0% 6307 Uniforms 6,337 7,500 9,600 7,900 400 5% 6311 Landscape Services 19,626 27,300 16,800 16,800 (10,500)-38% 6312 Janitorial Services 22,445 39,600 42,600 43,600 4,000 10% 6314 Litigation Services - - - 15,000 15,000 0% 6401 Utilities 4,296 3,300 3,300 4,200 900 27% 6402 Telephone 31,012 34,200 36,300 28,600 (5,600)-16% 6403 Electricity 26,239 36,000 36,000 36,000 - 0% 6404 Fuel 31,943 37,500 37,500 12,500 (25,000)-67% 6405 Permits 28,896 36,000 36,000 57,900 21,900 61% 6406 Postage 7,917 10,500 11,200 13,400 2,900 28% 6501 Memberships & Dues 32,326 31,500 34,300 32,400 900 3% 6502 Professional Development 28,168 47,700 59,900 48,800 1,100 2% 6503 Education Assistance 167 2,100 2,400 5,500 3,400 162% 6504 Meetings $ 5,180 $ 11,400 $ 14,200 $ 17,900 $ 6,500 57% 80 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6505 Employee Recognition $ 4,206 $ 5,700 $ 5,700 $ 6,000 $ 300 5% 6701 General Insurance 56,587 63,000 63,000 63,000 - 0% 6702 Insurance Claims 2,102 3,000 3,000 3,000 - 0% 6702 Bad Debt Expense - - 1,000 - 0% 6705 OPEB Retirees 47,848 45,000 45,000 87,000 42,000 93% ADMINISTRATION TOTAL 2,212,002 2,459,200 2,921,400 2,743,900 284,700 12% TOTAL OPERATING EXPENSES 10,164,210 11,470,400 11,981,400 12,168,000 697,600 6% OTHER USES 7101 Debt Principal 102,958 95,000 95,000 100,000 5,000 5% 7102 Debt Interest 192,960 222,000 222,000 212,000 (10,000)-5% 7500 Reserve Contribution 112,776 692,900 (2,285,100) 30,000 (662,900)-96% 8101 Capital Outlay 9,690 70,000 315,750 175,000 105,000 150% 8999 Capital Improvement Program 1,028,431 210,000 3,101,000 430,000 220,000 105% TOTAL OTHER USES 1,446,815 1,289,900 1,448,650 947,000 (342,900)-27% SUMMARY Total Revenue 11,686,882 12,577,000 13,361,606 13,115,000 538,000 4% Total Operating Expenses 10,164,210 11,470,400 11,981,400 12,168,000 697,600 6% Total Other Expenses 1,446,815 1,289,900 1,448,650 947,000 (342,900)-27% Transfer from Reserves - - - - - 0% NET 75,857 (183,300) (68,444)$ - $ -0% FISCAL YEAR BUDGET 2018-2019 81 Revenues Operating Expenses FY 2013-14Actual FY 2014-15Actual FY 2015-16Actual FY 2016-17Actual FY 2017-18Projected FY 2018-19Budgeted $14M $12M $10M $8M $6M $4M $2M $11,585,430 $11,974,364 $11,572,011 $11,686,882 $12,577,000 $13,115,000 $10,113,949 $10,460,073 $10,237,972 $10,164,210 $11,546,400 $12,168,000 Wastewater Fund Revenues Vs. Expenses East Valley Water District collects wastewater from 19,645 customers for treatment. 82 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY PR O G R A M S U M M A R I E S RED NEW ZEALAND TEA TREE Leptospermum Scoparium ‘Ruby Glow’ Originating from New Zealand, the drought tolerant Leptospermum Scoparium ‘Ruby Glow’ is fast-growing reaching heights of 6-8 feet. Its dark ruby-red flowers with are in full display in spring. Program Summaries FISCAL YEAR BUDGET 2018-2019 85 Department Descriptions The District utilizes program-based budgeting. Requested funds are associated with the expected results and performance is measured by indicators and reviewed on a quarterly basis with the Governing Board. This results-oriented strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits. Program- based budgeting results can be used in cost- benefit analyses, just as it would be in a business environment to determine the value of decisions and enhance transparency. Program goals and objectives have been designed to correlate directly with the District’s adopted vision, and are built from the agency Strategic Plan. Based on these goals and objectives, key performance indicators (KPI) monitor progress towards meeting program objectives. Each KPI has a target that provides users of the Budget the ability to assess the Program’s performance overtime. Program- based budgeting also increases accountability and transparency as the ratepayers and Governing Board can more easily see where dollars are invested and monitor program effectiveness. Some KPIs are included to notate industry benchmarks to help staff understand the District’s performance in comparison to the water and wastewater industry. American Water Works Association (AWWA) standards help improve both operational efficiency and managerial effectiveness. The FY 2018-19 Budget is organized into the follow- ing summary programs: • Governing Board • General Administration • Human Resources • Public Affairs • Conservation • Finance • Information Technology • Customer Service • Meter Service • Engineering • Water Production • Water Treatment • Water Quality An in-depth District-wide overview of the FY 2017-18 budget. An in-depth District-wide overview of the FY 2017-18 budget. PROGRAM SUMMARIES Comprehensive information for each functional program within the Distrtict 86 EAST VALLEY WATER DISTRICT • Water Maintenance • Wastewater Maintenance • Facilities Maintenance • Fleet Maintenance Position Summary Schedule East Valley Water District continues to evaluate staffing needs to ensure all services are addressed by a high-quality workforce. This process is supported by the strategic direction and succession planning efforts previously approved by the Governing Board. The following staffing changes occurred after mid-year in FY 2017-18, or are being proposed for FY 2018-19 and explain the shifts in staff numbers between departments: • A full-time graphic designer was added in Public Affairs and an Environmental Coordinator removed from Engineering • A Mechanic position was eliminated (retirement) and Facilities Maintenance Worker position added • A Meter Services position was eliminated and a Field Services position added to Water Maintenance. • A Construction Coordinator position was eliminated from Engineering and a Field Services position added to Water Maintenance • Reporting ties for a warehouse Storekeeper/ Buyer were moved from Finance to Water Maintenance The table below summarizes the number of full-time personnel by Department. All authorized positions are funded in the proposed budget for FY 2018-19. Full Time Staffing Summary By Department DEPARTMENT FY 2016-17 Actual FY 2017-18 Actual 2018-19 Budgeted 2000 General Administration 4 3 3 2100 Human Resources 2 2 2 2200 Public Affairs 2.5 2.5 4 2300 Conservation 1.5 1.5 1 3000 Finance & Accounting 7 7 6 3200 Information Technology 3 3 3 3300 Customer Service 8 7 7 3400 Meter Services 4 4 3 4000 Engineering 7 8 6 5000 Water Production 7 7 7 5100 Water Treatment 2 2 2 5200 Water Quality 2 2 2 6100 Water Maintenance 12 12 15 6200 Wastewater Maintenance 4 4 4 7000 Facilities Maintenance 1 1 2 7100 Fleet Maintenance 2 2 1 TOTAL 69 68 68 FISCAL YEAR BUDGET 2018-2019 87 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 63 65 66 67 69 68 68 Total Authorized Positions 88 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY GO V E R N I N G BO A R D SAUCER PLANT Aeonium Undulatum Native to the Canary Islands, the Aeonium Undulatum’s leaves curl during extreme heat to prevent excessive water loss. It may go dormant during summer and does not require any water, except in very dry conditions. Governing Board HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Governing Board Members 5 Elected Officials 5 Ratepayers Governing Board Chairman Governing Vice Chairman Governing Board Members Program Structure The Governing Board is the District’s Legislative Body Responsible for Serving as the Organizational Policy Makers FISCAL YEAR BUDGET 2018-2019 91 B O A R D O F D I R E C T O R S Function GOAL ONE Provide Organizational Direction and Set Expectations Through Policy Decisions OBJECTIVES 1. Implement a 5-Year Work Plan. 2. Conduct General Manager/CEO annual Evaluation including establishment of FY 2019-20 Goals. 3. Review and update the Board of Directors’ Handbook and policies. GOAL TWO Address Policy Related Decisions to Construct the Sterling Natural Resource Center (SNRC) OBJECTIVES 1. Consider agenda items regarding the SNRC. 2. Select a Design-Build entity for project construction in accordance with the Framework Agreement. 3. Participate in activities that encourage community engagement for the SNRC. GOAL THREE Participate in Activities to Promote Community Engagement and Increase Board Qualifications OBJECTIVES 1. Coordinate with the San Bernardino County Registrar of Voters to hold the 2018 elections. 2. Post all required election information and conduct notifications. 3. Participate in internal and external professional development activities. Goals and Objectives The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. Board members are responsible for providing leadership, direction and serving as the organizational policy makers. The Governing Board appoints the General Manager/CEO to carry out the day-to-day District operations and implementation of adopted policies. FISCAL YEAR BUDGET 2018-2019 91 92 EAST VALLEY WATER DISTRICT Governing Board Program FY 2017-18 ACCOMPLISHMENTS Goal 1 – Provide Organization Direction and Set Expectations -Adopted the Strategic Plan Update -Approved new administrative policies (Brown Act Compliance Policy & Public Records Request Policy) -Completed the General Manager/CEO evaluation -Adopted the 2018-19 Legislative Platform -Adopted updates to the Regional Urban Water Management Plan Goal 2 – Address Agenda Items Brought before the Board of Directors Relating to the SNRC -Approved filing of application to LAFCO for activation of District’s latent wastewater treatment authority -Approved revisions to the Framework Agreement with SBVMWD -Approved the Settlement Agreement with the City of San Bernardino Goal 3 – Continue Efforts to Increase the District as a Regional Leader -Appointed new Board Member from pool of 8 candidates to fill vacant Board Position -All members have attended the California Special District’s Association Leadership Academy -Served on statewide committees for the Association of California Water Agencies and California Special District’s Association -Conducted communication training sessions SIGNIFICANT CHANGES • Costs associated with elections in November 2018 are included in the 2018-19 budget LEVELS OF SERVICE The Governing Board has five KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Maximize Internal Capabilities through Ongoing Professional Development (I- B) • Practice Transparent and Accountable Fiscal Management (II-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) Program Budget Allocation $337,000 FISCAL YEAR BUDGET 2018-2019 93 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 I-A Act on project related agenda items presented by staff 100%100%100%100% I-B Average number of professional development hours per Board Member 6 6 6 8 II-A Schedule hearing and consider adjustments to rates, fees and charges recommended by staff Yes / 1 Yes / 1 Yes / 1 No / 0 II-D Submit all documentation by deadlines pursuant to transparency policies 100%100%100%100% I-C Attend regional and state meetings as representatives of EVWD 60 140 150 179 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 81,199 $ 105,000 $ 105,000 $ 105,000 - 0% 5200 Benefits 23,042 57,000 57,000 65,000 8,000 14% OPERATING EXPENSES 6201 Materials & Supplies - 1,000 1,000 1,000 - 0% 6301 Contract Services 11,490 10,000 10,000 110,000 100,000 1000% 6307 Uniforms 323 1,000 1,000 1,000 - 0% 6502 Professional Development 20,558 55,000 55,000 55,000 - 0% GOVERNING BOARD TOTAL $ 136,612 $ 229,000 $ 229,000 $ 337,000 $ 108,000 47% 94 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY GE N E R A L AD M I N I S T R A T I O N LACE ALOE Aloe Aristata Haw Member of the Xanthorrhoeaceae family, Aloe Aristata Haw can grow up to 1 foot tall with very little irrigation. This Lesotho and South Africa native thrives in warm temperatures. General Administration HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel General Manager/CEO 1 District Clerk 1 Administrative Assistant 1 Total Full Time 3 Governing Board General Maneger/CEO District Clerk Administrative Assistant Program Structure General Administration is Responsible for Overseeing the Day-to-Day Operations FISCAL YEAR BUDGET 2018-2019 97 G E N E R A L A D M I N I S T R A T I O N Function GOAL ONE Acquire Shares of the North Fork Water Company Not Currently Owned by the District OBJECTIVES 1. Send Offer-to-Purchase letters to all shareholders not currently receiving North Fork deliveries. 2. Coordinate with legal counsel to define the terms of potable water service delivery to shareholders currently receiving North Fork deliveries. 3. Create a Stock Transfer procedure guide for shareholders responding to the Offer-to-Purchase letter. GOAL TWO Coordinate the Establishment of a Non-Profit Foundation OBJECTIVES 1. Finalize Vision and Purpose Statements for the establishment of a non-profit foundation. 2. Coordinate with various departments to support the non-profit foundation. 3. Prepare policy recommendations for consideration by the District Governing Board. GOAL THREE Implement a Districtwide Records Retention Program OBJECTIVES 1. Implement an annual records retention training program for staff. 2. Identify records to be transferred into the District’s official electronic document repository. 3. Conduct document destruction in accordance with the adopted Records Retention Policy. Goals and Objectives The General Manager/CEO is responsible for carrying out day-to- day District operations, implementation of adopted policies, general oversight to interagency relations, legislative activities, and strategic planning. Additionally, administration is responsible for implementing the District’s Vision, maintaining official records, promoting public trust, and ensuring transparency compliance. FISCAL YEAR BUDGET 2018-2019 97 98 EAST VALLEY WATER DISTRICT General Administration Program OTHER ACCOMPLISHMENTS • Continued support for the Adopt-a-School program partnership with San Bernardino City Unified School District • Held 14 community conversations and public speaking engagements • Successful recruitment process for Engineering and Operations Manager SIGNIFICANT CHANGES • Contract services has been increased to pay for destruction of physical records in accordance with the Records Retention Policy • Legal services has increased to provide review of potential non-profit foundation and North Fork Water Company re-organization Program Budget Allocation $1,258,000 FY 2017-18 ACCOMPLISHMENTS Goal 1 – Provide Administrative Support to the Governing Board -Conducted 9 candidate orientation sessions for Board Member vacancy -Conducted strategic planning sessions -Developed a Brown Act Compliance Policy to ensure that all meetings of the Board of Directors and Standing Committees shall be conducted in compliance with all applicable requirements of the Brown Act Goal 2 – Reduce District Expenditures on Document Storage and Improve Records Management -Retained a consultant to develop guidelines for implementing a Records Retention Policy -Reviewed statutory disposition schedules with each department Goal 3 – Promote Environmental Stewardship -Implemented an agenda subscriber campaign to encourage customers to stay informed on District projects and programs Goal 4 – Implement Programs to Remain in Compliance with Public Records Requirements -Developed a Public Records Request Policy that defines the criteria and establishes guidelines concerning the accessibility of District records FISCAL YEAR BUDGET 2018-2019 99 LEVELS OF SERVICE The General Administration Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Practice Transparent and Accountable Fiscal Management (II-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Dedicated Efforts Toward System Maintenance and Modernization (IV-C) • Utilize Effective Communications Methods (II-B) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 II-A Make administrative documents available on-line 50 -10 20 II-D Publish Open Meeting/Public Notices on or before statutory requirement 100%100%100%100% IV-C Reduce number of boxes held in off-site storage 2,000 3,162 3,291 3,291 II-B Encourage user subscriptions to receive electronic agenda notifications 220 113 120 120 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 504,082 $ 486,000 $ 491,000 $ 507,000 $ 21,000 4% 5103 Overtime 1,960 - - 3,000 3,000 100% 5200 Benefits 236,079 245,000 306,000 270,000 25,000 10% OPERATING EXPENSES 6201 Materials & Supplies 1,860 4,000 4,000 4,000 - 0% 6203 Office Supplies 2,914 4,000 4,000 4,000 - 0% 6301 Contract Services 143,817 194,000 199,000 182,000 (12,000)-6% 6303 Printing & Publishing 865 2,000 2,000 2,000 - 0% 6304 Legal Services 101,116 150,000 250,000 125,000 (25,000)-17% 6307 Uniforms 418 1,000 1,000 1,000 - 0% 6402 Telephone - 1,000 - 50,000 49,000 4900% 6406 Postage 2,921 3,000 3,000 3,000 - 0% 6501 Membership & Dues $ 53 $ - $ - $ - $ - 0% GENERAL ADMIN TOTAL $ 1,106,502 $ 1,202,000 $ 1,372,000 $ 1,258,000 $ 56,000 5% 100 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6502 Professional Development $ 87,649 $ 77,000 $ 77,000 $ 77,000 $ - 0% 6503 Education Assistance 15,532 25,000 25,000 20,000 (5,000)-20% 6504 Meetings 7,236 10,000 10,000 10,000 -0% GENERAL ADMIN TOTAL $ 1,106,502 $ 1,202,000 $ 1,372,000 $ 1,258,000 $ 56,000 5% HU M A N RE S O U R C E S YELLOW KANGAROO PAW Anigozanthos Flavidus Originating from Western Australia, the kangaroo paw gets its name from the resemblance of its tubular flowers coated with dense hairs that open into paw-like form. Human Resources HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Human Resources/ Risk & Safety Manager 1 Senior Administrative Assistant 1 Total Full Time 2 General Manager/CEO Human Resources/Risk & Safety Manager Sr. AdministrativeAssistant Program Structure Human Resources is Responsible for Personnel-Related Programs FISCAL YEAR BUDGET 2018-2019 103 H U M A N R E S O U R C E S Function Goals and Objectives Human Resources is responsible for facilitating programs to attract the best and brightest candidates while fostering a work environment that promotes high morale and employee retention. Recognizing the importance of individual well-being, Human Resources leads the efforts to encourage health and wellness. Additionally, they manage the risk and safety programs to ensure a safe work-place at the District. GOAL ONE Initiate Programs in Support of SNRC Workforce Needs OBJECTIVES 1. Develop an action plan for the implementation of a Wastewater Operator-in-Training program. 2. Conduct a staffing analysis to identify the needs for administrative, customer service, special events, educational, facilities maintenance, and other functions. 3. Understand the liability requirements of wastewater treatment including additional facility replacement costs, workers compensation coverage for new classification codes, and potential claim impacts. GOAL TWO Promote a positive organizational culture that maintains a supportive and encouraging work environment OBJECTIVES 1. Update the Succession Plan to reflect potential retirements and prepare for the implementation of the 5-Year Plan. 2. Create an Action Plan to address results from the annual Engagement survey and focus groups meetings. 3. Facilitate quarterly activities that support employee engagement and empowerment. GOAL THREE Promote community involvement and provide work experience opportunities OBJECTIVES 1. Launch the District’s Volunteer Program including an applicant tracking method. 2. Understand roles for volunteers relating to the SNRC. 3. Identify programs for adult education and community enhancement. FISCAL YEAR BUDGET 2018-2019 103 104 EAST VALLEY WATER DISTRICT OTHER ACCOMPLISHMENTS • Graduated 10 participants in the District’s 4th Leadership Academy • Conducted a successful executive recruitment for the position of Director of Engineering and Operations • Hired seven EVWD team members • Processed two internal promotions SIGNIFICANT CHANGES • The regular labor account has decreased with the elimination of the Administrative Intern position. • Funds have been added to the Contract Services account to focus on organizational development and the District’s five-year plan. Human Resources Program Program Budget Allocation $990,000 FY 2017-18 ACCOMPLISHMENTS Goal 1 – Promote a Positive Organizational Culture that Holds Managers, Supervisors and Employees Accountable for Creating and Maintaining a Supportive and Encouraging Work Environment -Conducted annual employee engagement surveys and received feedback from the facilitation of engagement focus group meetings. -Created an action plan for the leadership team to address concerns presented during engagement focus group meetings. -Received the Top Workplace in the Inland Empire First Place Award by The Inland News Group in the Small Company Category. -Maintained non-retirement turnover of less than 7%. Goal 2 – Enhance the District’s Wellness Initiatives to Help Promote Healthier Behaviors -Enhanced the District’s Employee Wellness Program by offering BodyMetRx screenings and the Fresh Start Mondays program to assist employees in meeting their healthy lifestyle goals. -Ensured participation in the District’s pre-shift stretching program. Goal 3 – Develop a Workforce Readiness Program to Enhance Employability Skills of Job Seekers in the Region -Identified and defined core competencies of a workforce readiness program. -Developed program curriculum incorporating core competencies and employability skills for workforce readiness. Goal 4 – Implement the District’s Volunteer Program to Promote Community Involvement, Provide Work Experience Opportunities, and Offer Staff Assistance -Conducted departmental needs assessment to gain understanding of areas where volunteers could be utilized. -Identified recruiting sources to attract volunteer applicants. -Created brochure and website content to prepare for implementation of the District’s Volunteer Program. FISCAL YEAR BUDGET 2018-2019 105 LEVELS OF SERVICE The Human Resources Program has five KPI metrics that are associated with the District’s Goals and Objectives: • Encourage Performance Based Results through Staff Empowerment (I-D) • Provide Quality Information to Encourage Community Engagement (II-D) • Promote a Positive Organizational Culture (III-C) • Embrace an Environment of Active Learning and Knowledge Sharing (III-D) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 I-D Percentage of annual non-retirement employee turnover <7%4.55%1.49%3% I-D Annual performance appraisals completed in a timely manner 95%100%99%100% II-D Enrollment in District volunteer program 5 --- III-C Maintain high level of employee participation in annual employee engagement survey 90%91%93%94% III-D Utilization rate of District’s Employee Assistance Program >10%16%21%7% PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 218,087 $ 211,000 $ 211,000 $ 224,000 $ 13,000 6% 5102 Temporary Labor 10,394 12,000 12,000 - (12,000)-100% 5103 Overtime 1,914 3,000 3,000 3,000 - 0% 5200 Benefits 91,432 100,000 122,000 104,000 4,000 4% OPERATING EXPENSES 6201 Materials & Supplies 680 18,000 18,000 15,000 (3,000)-17% 6203 Office Supplies 670 2,000 2,000 2,000 - 0% 6301 Contract Services 54,663 68,000 93,000 70,000 2,000 3% 6303 Printing & Publishing 415 1,000 1,000 1,000 - 0% 6304 Legal Services 20,264 20,000 20,000 20,000 - 0% 6406 Postage 19 1,000 1,000 1,000 - 0% 6501 Membership & Dues 7,828 5,000 5,000 4,000 (1,000)-20% 6502 Professional Development $ 6,941 $ 10,000 $ 10,000 $ 11,000 $ 1,000 10% HUMAN RESOURCES TOTAL $ 784,213 $ 845,000 $ 892,000 $ 990,000 $ 145,000 17% 106 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6504 Meetings $ 1,761 $ 5,000 $ 5,000 $ 5,000 - 0% 6505 Employee Recognition 14,020 19,000 19,000 20,000 1,000 5% 6701 General Insurance 188,624 210,000 210,000 210,000 - 0% 6702 Insurance Claims 7,006 10,000 10,000 10,000 - 0% 6705 Retiree Benefits 159,495 150,000 150,000 290,000 140,000 93% HUMAN RESOURCES TOTAL $ 784,213 $ 845,000 $ 892,000 $ 990,000 $ 145,000 17% PU B L I C AF F A I R S SOAP ALOE Aloe Saponaria Blooming intermittently throughout the year, the Aloe saponaria’s foliage can reach heights of 10-12 inches. Sap from its juicy leaves can be used as a soap substitute. Public Affairs HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Full Time Director of Strategic Services 1 Public Affairs Specialist 1 Creative Services Representative 1 Senior Administrative Assistant 1 Total Full Time 4 Part-Time Public Affairs Event Coodinator 0.5 Total Part-Time 0.5 General Manager/CEO Director of Strategic Services Program Structure Public Affairs Oversees Internal and External Communication Programs Public AffairsSpecialist Creative ServicesRepresentative Public Affairs EventsCoordinator (PT) Sr. Administrative Assistant FISCAL YEAR BUDGET 2018-2019 109 P U B L I C A F F A I R S Function GOAL ONE Implement an outreach program that encourages community engagement in the SNRC OBJECTIVES 1. Create outreach materials and events to promote the construction status and future programs of the SNRC. 2. Establish a community group to provide input regarding the SNRC. 3. Enhance the SNRC website to provide regular project updates for community stakeholders. GOAL TWO Develop communication methods that enhance the District’s brand OBJECTIVES 1. Develop the 5-Year Work Plan to compliment the adopted Strategic Plan and District-wide goals. 2. Implement alternative approaches to increase internal communication regarding District projects and programs. 3. Identify and participate in monthly community events to strengthen the District’s presence in the community. GOAL THREE Advance the District’s emergency preparedness program to effectively respond in an emergency OBJECTIVES 4. Revise the District’s Emergency Response Plan to reflect current District operations. 5. Assess staff’s current emergency response certification, and facilitate necessary trainings to ensure full compliance with FEMA requirements. 6. Develop a procedures guide which identifies the various communication methods available in emergencies. Goals and Objectives Public Affairs oversees internal and external communication programs consistent with the District’s vision. Through media, community and governmental relations, the District is able to provide effective communications to various stakeholders. FISCAL YEAR BUDGET 2018-2019 109 110 EAST VALLEY WATER DISTRICT Public Affairs Program SIGNIFICANT CHANGES • Sterling Natural Resource Center outreach efforts been included in this program • Printing and Publishing accounted for additional printing items that are new to this fiscal year LEVELS OF SERVICE The Public Affairs Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Advance Emergency Preparedness Efforts (III-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) • Utilize Effective Communication Methods (II-B) Program Budget Allocation $1,142,000 FY 2017-18 ACCOMPLISHMENTS Goal 1 – Identify and Implement Additional Outreach Efforts that Support the District’s Brand and Further Develops Community Presence -Incorporated the District’s style guide into capital project communication efforts. -Hosted pop-up events to celebrate National Day Without Water. -Identified recurring community events Goal 2 – Enhance Customer-Focused Outreach Efforts that Cultivate Relationships and Strengthen the District’s Presence in the Community -Participated in community events including the Highland Chamber of Commerce, Highland Trails Day, and local school programs. -Increased social media engagement by posting at least three times per week to all platforms. -Established an Internal Communications Committee to enhance collaboration between departments. Goal 3 – Maintain the District’s Emergency Preparedness Standards in Order to Effectively Respond in a Disaster or Emergency -Developed a Crisis Communication Toolkit to be used in the event of an emergency. -The District hosted quarterly emergency preparedness drills with staff. -The District hosted a HAM radio class for District staff and other local agencies. FISCAL YEAR BUDGET 2018-2019 111 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 III-A Update Emergency Response Plan 100%75%80%80% III-A Number of Emergency Response training hours per FTE 16 5 8 8 II-D Number of community event presentations 15 14 18 8 I-C Number of Community Advisory Commission meetings conducted 6 -3 6 II-B Number of followers on social media 100 244 190 673 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 290,842 $ 347,000 $ 378,000 $ 393,000 $ 46,000 13% 5102 Temporary Labor - - - - - 0% 5103 Overtime 6,432 7,000 7,000 7,000 - 0% 5200 Benefits 84,477 129,000 160,000 132,000 3,000 2% OPERATING EXPENSES 6201 Materials & Supplies 74,857 70,000 70,000 186,000 116,000 166% 6203 Office Supplies 6,314 7,000 7,000 3,000 (4,000)-57% 6301 Contract Services 77,978 147,000 146,000 167,000 20,000 14% 6303 Printing & Publishing 49,779 41,000 41,000 169,000 128,000 312% 6304 Legal Services 490 5,000 5,000 5,000 - 0% 6307 Uniforms 603 3,000 3,000 3,000 - 0% 6312 Janitorial Services - 10,000 10,000 8,000 (2,000)-20% 6402 Telephone 1,867 3,000 3,000 3,000 - 0% 6406 Postage 26,280 32,000 32,000 25,000 (7,000)-22% 6501 Membership & Dues 1,924 4,000 4,000 6,000 2,000 50% 6502 Professional Development 7,365 11,000 11,000 12,000 1,000 9% 6503 Education Assistance - 2,000 3,000 8,000 6,000 300% 6504 Meetings 3,476 10,000 10,000 15,000 5,000 50% PUBLIC AFFAIRS TOTAL $ 632,684 $ 828,000 $ 890,000 $ 1,142,000 $ 314,000 38% 112 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY CO N S E R V A T I O N RASPBERRY ICE Bougainvillea Spectabilis A winter bloomer, the Bougainvillea Spectabilis thrives in very dry condition and is a salt tolerant. Native to Brazil, Peru, Bolivia, and Chubut Province and Argentina. Conservation HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Full Time Conservation Coordinator 1 Total Full Time 1 Director of Strategic Services Conservation Coordinator Program Structure Conservation Encourages Sustainable Water Use FISCAL YEAR BUDGET 2018-2019 115 C O N S E R V A T I O N Function GOAL ONE Develop community engagement programs to increase awareness of water-use efficiency. OBJECTIVES 1. Create conservation material in Spanish to help support conservation education. 2. Identify and interact with community groups/events to increase engagement with conservation programs. 3. Develop and host a water conservation workshop series. GOAL TWO Evaluate Rebate Program Success and Implement Program Enhancements. OBJECTIVES 1. Develop a conservation action plan to encourage water efficiency through the different stages of water supply availability. 2. Identify additional programs to increase customer participation and water savings. 3. Host a community event to promote the District’s water conservation rebate programs. GOAL THREE Engage in the legislative process as it relates to changes in conservation regulations. OBJECTIVES 1. Actively participate in the regulatory and legislative process as new conservation guidelines are considered. 2. Develop a monitoring procedure to prepare for periods where the District’s water use may exceed the regulatory base year. 3. Provide quarterly updates to the Governing Board to ensure they are informed on the changing conservation regulatory requirements. Goals and Objectives Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies. FISCAL YEAR BUDGET 2018-2019 115 116 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Maintain Compliance with Water Conservation Standards Established by the State Water Resources Control Board (SWRCB). -Maintained active participation in the development of long-term and short-term conservation guidelines. -Met conservation reduction goals established by the SWRCB. Goal 2 – Continue Water Conservation Outreach with the Community to Encourage Continued Water Use Efficiency. -Partnered with Inland Empire Water Keeper to enhance the District’s demonstration garden and educational signage. -Incorporate water conservation outreach material in conjunction with other efforts including bill inserts, social media posts, and on hold messages. -Incorporated online event registration to encourage increased attendance at the District’s conservation workshops. Goal 3 – Evaluate and Measure the Success of Rebate Programs and Make Recommendations for Improvements. -Expanded the District’s WBIC Direct Installation Program to reflect the high community interest. -Created and distributed thank you letters to customers that have participated in the District’s rebate programs. SIGNIFICANT CHANGES • Printing and publishing costs have increased 100% so that printed materials can be translated in Spanish. • The increase to the printing budget will also pay for upgraded signage in the demonstration garden. LEVELS OF SERVICE The Conservation Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Provide Quality Information to Encourage Community Engagement (II-D) • Pursue Alternative Funding Sources (II-C) Program Budget Allocation $593,000 Conservation Program FISCAL YEAR BUDGET 2018-2019 117 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 I-A Meet SWRCB conservation goal Yes Yes Yes Yes I-A Maintain significant level of participation in annual conservation rebate programs 300 902 400 556 II-D Number of educational materials created 100 102 275 220 II-C External conservation funding received $ 25,000 $ 265,729 $ 40,123 $ 33,769 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 184,508 $ 98,000 $ 98,000 $ 98,000 - 0% 5102 Temporary Labor 3,428 - - - - 0% 5103 Overtime 3,621 8,000 8,000 3,000 (5,000)-63% 5200 Benefits 34,002 32,000 32,000 27,000 (5,000)-16% OPERATING EXPENSES 6201 Materials & Supplies 8,940 20,000 20,000 25,000 5,000 25% 6203 Office Supplies 2,511 3,000 3,000 3,000 - 0% 6205 Conservation Rebates 287,837 200,000 200,000 200,000 - 0% 6301 Contract Services 60,333 135,000 135,000 108,000 (27,000)-20% 6303 Printing & Publishing 60,690 50,000 50,000 100,000 50,000 100% 6304 Legal Services 2,760 1,000 1,000 1,000 - 0% 6307 Uniforms 27 1,000 1,000 1,000 - 0% 6402 Telephone 991 1,000 1,000 2,000 1,000 100% 6406 Postage 3,378 20,000 20,000 20,000 - 0% 6501 Membership & Dues 1,749 2,000 2,000 2,000 - 0% 6502 Professional Development 659 2,000 2,000 2,000 - 0% 6504 Meetings 550 2,000 2,000 1,000 (1,000)-50% CONSERVATION TOTAL $ 655,981 $ 575,000 $ 575,000 $ 593,000 $ 18,000 3% 118 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY FI N A N C E & AC C O U N T I N G DWARF LITTLE JOHN Callistemon Viminalis Native from Australia, this evergreen plant can grow 3 feet tall. Butterflies, bees and hummingbirds are attracted to its red flowers, which appear in the spring through summer. Finance & Accounting HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Chief Financial Officer 1 Business Services Manager 1 Accountant 1 Senior Accounting Technician 1 Accounting Technician 1 Sr. Administrative Assistant 1 Total Full Time 6 Program Structure Finance and Accounting Provides Transparent and Responsible Oversight of District Funds Chief Financial Officer Administrative Assistant Business Services Manager Accountant Accounting Technician Sr. Accounting Technician FISCAL YEAR BUDGET 2018-2019 121 F I N A N C E & A C C O U N T I N G Function GOAL ONE Enhance Accounting and Financial Reporting for the benefit of Internal and External Stakeholders OBJECTIVES 1. Support effort to establish a non-profit community foundation by filing application for tax exempt status. 2. Evaluate and Recommend budget software for greater forecasting capabilities. 3. Issue second edition of Popular Annual Financial Report with refined graphics and tables – submit PAFR for GFOA award. 4. Support Operations effort to implement inventory bar code system in warehouse by performing tests to ensure accuracy of system integration. GOAL TWO Maintain strong Financial Policies and Management Practices to Preserve and Enhance the District’s Financial Position OBJECTIVES 1. Create a financial plan to reduce long-term pension liabilities. 2. Update District fiscal policies related to credit card use and reimbursable expenses. 3. Budget to build adequate replacement reserves in appropriate programs. GOAL THREE Link fixed asset information in Tyler accounting system to digitized maps in GIS program OBJECTIVES 1. Link cost/location for 9,400 meters in Phases 1 and 2 of the AMI project with digitized maps of District infrastructure in GIS. 2. Link cost/location for recently rehabilitated sewer manholes in Tyler with GIS. 3. Link cost/location of projects closed in FY 2017-18 to Tyler and GIS. Goals and Objectives Finance and accounting oversees the business operations of the District in order to provide accountability and adequate control over the use of District funds. Staff maintains the financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations, and District policies. FISCAL YEAR BUDGET 2018-2019 121 122 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Enhance Accounting Support and Financial Reporting to Internal and External Customers -Issued the first edition of the District’s Popular Annual Financial Report (PAFR) -Received fifth consecutive GFOA Distinguished Budget Award - FY 2017-18 Budget -Received sixth consecutive GFOA Certificate of Achievement for Excellence in Financial Reporting - FY 2016-17 Comprehensive Annual Financial Report -Implemented an option for paying conservation rebates electronically, rather than by check Goal 2 – Engage the Community and Management in Planning for, and Compliance with, District Authorized Use of Public Funds -Presented the first quarterly budget review -Held the Goals and Objectives Workshop -Held revenure projection and budget expenditure workshops for Board and Community Advisory Council Goal 3 – Maintain Strong Financial Policies and Management Practices to Safeguard the District’s Financial Position and Reduce Cost of Borrowing -Updated the Debt Management Policy for compliance with California SB 1029 -Updated the Purchasing Policy and Investment Policy -Linked records of all water mains replaced, by project number, in the last 15 years OTHER ACCOMPLISHMENTS • Implemented an option for paying conservation and other rebates electronically, rather than by check SIGNIFICANT CHANGES • The Storekeeper/Buyer has been moved and budgeted under the Maintenance Program. LEVELS OF SERVICE The Finance and Accounting Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Practice Transparent and Accountable Fiscal Management (II-A) • Dedicate Efforts Towards System Maintenance and Modernization (IV-C) Program Budget Allocation $1,131,000 Finance & Accounting Program FISCAL YEAR BUDGET 2018-2019 123 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 II-A Timely complete audit and present CAFR within set number of days from fiscal year end 135 162 118 103 II-A Enhance District bond rating through strong reserves and fiscal policies AA AA-AA-AA- II-A Number of fiscal policies updated / enhanced and reviewed with the Board 4 2 4 3 IV-C Convert vendor payments from paper check to electronic fund transfers (EFT)80%42%60%67% II-A Provide program managers monthly budget variance reports 12 12 12 12 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 643,714 $ 678,000 $ 683,000 $ 650,000 $ (28,000)-4% 5102 Temporary Labor 19,913 - - - - 0% 5103 Overtime 11,553 10,000 10,000 5,000 (5,000)-50% 5200 Benefits 247,524 287,000 356,000 259,000 (28,000)-10% OPERATING EXPENSES 6203 Office Supplies 14,810 11,000 11,000 11,000 - 0% 6301 Contract Services 156,600 82,000 82,000 89,000 7,000 9% 6302 Banking Services 11,475 20,000 20,000 20,000 - 0% 6303 Printing & Publishing - 1,000 1,000 1,000 - 0% 6304 Legal Services 33,960 60,000 60,000 60,000 - 0% 6307 Uniforms 2,265 3,000 3,000 2,000 (1,000)-33% 6402 Telephone 2,412 3,000 3,000 3,000 - 0% 6406 Postage 26 1,000 1,000 1,000 - 0% 6501 Membership & Dues 2,227 4,000 4,000 4,000 - 0% 6502 Professional Development 8,184 17,000 17,000 21,000 4,000 24% 6503 Education Assistance - - - - - 0% 6504 Meetings 2,642 4,000 4,000 4,000 - 0% 6704 Bad Debt 736 1,000 1,000 1,000 - 0% FINANCE TOTAL $ 1,158,041 $ 1,182,000 $ 1,256,000 $ 1,131,000 $ (51,000)-4% 124 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY IN F O R M A T I O N TE C H N O L O G Y WESTERN REDBUD Cercis Occidentalis Recognized for its pink blossoms in spring, the Cercis Occidentalis is a drought tolerant shrub or tree that can grow 10-20 feet tall. A California native, often found in foothills below 4000 feet. Information Technology HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Information Technology Manager 1 Network Administrator 1 Information Systems Technician 1 Total Full Time 3 Chief Financial Officer Information Technology Manger Program Structure IT is Responsible for District Technology and Software Programs Network Administration Information System Technician FISCAL YEAR BUDGET 2018-2019 127 I N F O R M A T I O N T E C H N O L O G Y Function GOAL ONE Ensure Effective Technology Services with Proactive Planning and Maintenance Activities. OBJECTIVES 1. Update the IT Strategic Plan to align technology initiatives with the District’s future goals and objectives. 2. Develop IT Policies and Procedures to adhere with industry best practices and regulations. 3. Implement solutions for all high-risk vulnerabilities discovered from the Cybersecurity Assessment. GOAL TWO Conduct Critical System Upgrades to Help Ensure Business Continuity OBJECTIVES 1. Reduce business risks with the installation of a data center fire suppression system. 2. Proactively replace workstations and mobile devices that no longer meet performance requirements or have reached end-of- life. 3. Upgrade the District’s internal wireless network to improve guest network capabilities and network traffic management. 4. Install server backup software specifically developed for virtualized environments to enhance business continuity. 5. Upgrade the Voice-over-IP (phone) system before Cisco’s end-of- support date. GOAL THREE Enable Data Collection and Data Management Efforts for Other Departments OBJECTIVES 1. Coordinate the collection of back flow testing data for a cost- benefit analysis. 2. Implement a Drone Program to improve data collection efforts and improve business processes. 3. Develop data collection processes to document high- maintenance areas for wastewater. 4. Support and configure data dictionary templates to GPS manholes and siphons. Goals and Objectives Information Technology (IT) is responsible for the strategic alignment of technology with the District’s initiatives. Staff maintains the enterprise systems, network, cybersecurity, and computer hardware. FISCAL YEAR BUDGET 2018-2019 127 128 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Improve Cybersecurity Resiliency to Mitigate Vulnerabilities and Threats -Completed Cybersecurity Plan aligned with the NIST (National Institute of Standards and Technology) Cybersecurity Framework that outlines findings and recommendations. -Conducted Network Penetration Testing to discover vulnerabilities, detection methods, and recommended remediations. -Implemented a Mobile Device Management solution to manage District issued smart phones and laptops. -Continued anti-phishing email campaigns to elevate cybersecurity awareness. Goal 2 – Assess and Evaluate Existing Technology Solutions to Improve Operations. -Enhanced communication and collaboration by developing SharePoint project sites and Intranet Implementation. -Created three data quality control reports in the business intelligence platform. -Completed the telecommunications audit resulting in 14% annual savings. Goal 3 – Improve Technology Infrastructure for Reliable and Redundant Services -Added a Tier 2 data storage appliance to increase storage capacity and improve data storage cost- efficiency. -Installed an Internet failover link using cellular technology to improve communications redundancy. -Completed the virtualization, software upgrade, and performance optimization of the Geographic Information System. SIGNIFICANT CHANGES • IT Strategic Plan update project has increased Contract Services. • Business Intelligence licensing, data warehouse, and support costs has increased Contract Services. • A Managed Services consultant will be utilized to augment staff resources and assist with remediating cybersecurity vulnerabilities. LEVELS OF SERVICE The Information Technology Program has five KPI metrics that are associated with the District’s Goals and Objec- tives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Strive to Provide World Class Customer Relations (III-B) • Dedicate Effort Toward System Maintenance and Modernization (IV-C) Program Budget Allocation $1,009,000 Information Technology Program FISCAL YEAR BUDGET 2018-2019 129 • The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 1,600 -140 TBD IV-A Maximize system availability 99%99%99%99% III-B Receive ‘Excellent’ scores on IT satisfaction surveys submitted by staff >95%-90%TBD III-B Minimize resolution time for help desk issues submitted by staff 24 hrs 12 10.2 TBD IV-C Complete all current year project listed in the IT Strategic Plan 100%90%100%67% PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 302,247 $ 313,000 $ 313,000 $ 334,000 $ 21,000 7% 5102 Temporary Labor - - - - - 0% 5103 Overtime - - - - - 0% 5200 Benefits 83,749 129,000 137,000 109,000 (20,000)-16% OPERATING EXPENSES 6201 Materials & Supplies 47,696 36,000 35,000 35,000 (1,000)-3% 6203 Office Supplies 341 - - - - 0% 6301 Contract Services 292,685 461,000 461,000 500,000 39,000 8% 6307 Uniforms 181 1,000 1,000 1,000 - 0% 6402 Telephone 4,329 6,000 6,000 5,000 (1,000)-17% 6503 Education Assistance - 5,000 5,000 5,000 - 0% 6501 Membership & Dues 5,451 6,000 6,000 7,000 1,000 17% 6502 Professional Development 13,683 1,000 2,000 1,000 - 0% 6504 Meetings 401 5,000 5,000 12,000 7,000 140% IT TOTAL $ 750,763 $ 963,000 $ 971,000 $ 1,009,000 $ 46,000 5% 130 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY CU S T O M E R SE R V I C E ORCHID ROCK ROSE Cistus Purpureus Originally hybridized for fragrant oil production, Cistus x Purpureus is a hybrid of two Mediterranean species. A drought tolerant shrub that blooms late spring into summer and grows 4-6 feet tall. Customer Service HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Customer Service Supervisor 1 Sr. Customer Service Rep 1 Customer Service Rep III 1 Customer Service Rep II 2 Customer Service Rep I 1 Receptionist 1 Total Full Time 7 Chief Financial Officer Customer Service Supervisor Program Structure Finance and Accounting Provides Transparent and Responsible Oversight of District Funds Sr. Customer ServiceRepresentative Customer ServiceRepresentative II Customer ServiceRepresentative III Customer ServiceRepresentative I Reception FISCAL YEAR BUDGET 2018-2019 133 C U S T O M E R S E R V I C E Function GOAL ONE Develop Strategies to Address Organizational Service Needs OBJECTIVES 1. Develop Action Plan to prepare for changes to Customer Service Operations as a result of the SNRC. 2. Create reports to monitor customer delinquency patterns in order to actively engage in proposed legislation. GOAL TWO Modify Processes to Encourage World Class Customer Service while Maintaining Financial Stability OBJECTIVES 1. Review current policies/ordinances and identify recommendations to reduce the number of monthly service disconnections. 2. Survey award winning Customer Service agencies to include items such as staffing levels, billing procedures, and training programs. GOAL THREE Establish a Professional Development Plan that Supports the District’s Vision OBJECTIVES 1. Identify professional organizations that provide peer support and best practices for world class customer service. 2. Identify and implement technical and customer service training opportunities on a consistent basis, including peer-to-peer training. Goals and Objectives Customer Service provides the community with prompt, courteous, and world class customer relations. As the primary contact point with residents, this program explores opportunities to provide convenient methods of payment and strives to resolve customer concerns. FISCAL YEAR BUDGET 2018-2019 133 134 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Strive to Provide World Class Customer Service -Created video for customers explaining the billing process -Created a “Welcome Packet” for new customers -Created a Quick Guide Magnet for customers -Researched options for cost recovery of merchant fees Goal 2 – Improve Departmental / Customer Processes -Updated the IVR so customers can get balance and due date of bills reducing calls to the office -Implemented DocuSign for Pre-authorized payment applications and Deposit Waiver applications. SIGNIFICANT CHANGES • Increased Contract Services for the Tyler Utility Billing Web Portal LEVELS OF SERVICE The Customer Service Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Strive to Provide World Class Customer Relations (III-B) • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Customer Service Program Program Budget Allocation $1,786,00 FISCAL YEAR BUDGET 2018-2019 135 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 III-B Reduce number of customers disconnected for non-payment each year 1,800 2,825 2,437 2450 III-B Encourage completion of Customer Satisfaction Surveys to better understand customer concerns 120 -45 210 III-B Number of customer payments received through convenient off-site locations 10,000 6,489 7,463 5258* I-B Number of customer service training hours per employee 16 6 7 12 IV-C Customers enrolled in paperless billing 2,000 1,253 1,945 2990 IV-C Customers enrolled in the Pre- Authorized Payment Plan (auto-debit)2,000 1,552 1,632 1826 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 452,130 $ 472,000 $ 472,000 $ 476,000 $ 4,000 1% 5102 Temporary Labor 19,786 3,000 3,000 - (3,000)-100% 5103 Overtime 5,327 5,000 5,000 5,000 - 0% 5200 Benefits 217,334 242,000 289,000 257,000 15,000 6% OPERATING EXPENSES 6201 Materials & Supplies 5,981 8,000 8,000 5,000 (3,000)-38% 6203 Office Supplies 2,056 4,000 4,000 3,000 (1,000)-25% 6301 Contract Services 68,734 111,000 126,000 129,000 18,000 16% 6302 Banking Services 252,601 303,000 303,000 306,000 3,000 1% 6303 Printing & Publishing 3,486 5,000 5,000 10,000 5,000 100% 6304 Legal Services 5,710 5,000 5,000 5,000 - 0% 6306 Rents & Leases 5,000 - - - - 0% 6307 Uniforms 2,830 6,000 6,000 4,000 (2,000)-33% 6308 Billing Services 45,540 52,000 52,000 52,000 - 0% 6309 Shut Off Notice Services 360,144 359,000 359,000 359,000 - 0% 6402 Telephone 3,778 6,000 6,000 6,000 - 0% 6406 Postage $ 95,165 $ 151,000 $ 151,000 $ 153,000 $ 2,000 1% CUSTOMER SERVICE TOTAL $ 1,547,732 $ 1,749,000 $ 1,811,000 $ 1,786,000 $ 37,000 2% 136 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change 6502 Professional Development $ 1,225 $ 14,000 $ 14,000 $ 14,000 $ - 0% 6503 Education Assistance 733 1,000 1,000 - (1,000)-100% 6504 Meetings 352 2,000 2,000 2,000 - 0% 6703 Cash Over/Short (179) - - - - 0% CUSTOMER SERVICE TOTAL $ 1,547,732 $ 1,749,000 $ 1,811,000 $ 1,786,000 $ 37,000 2% ME T E R SE R V I C E S CAMPFIRE CEASSULA Crassula Capitella ‘Campfire Brightest in winter, Crassula Capitella ‘Campfire’ leaves mature from light green to bright red. Clusters of white flowers are visible on its leaves in summer. A South Africa native that requires minimum water for growth. Meter Services HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Meter Reader II 1 Meter Reader I 2 Total Full Time 3 Operations Manager Program Structure Meter Services Serves as a Field Extension of Customer Service Meter Reader II Meter Reader I FISCAL YEAR BUDGET 2018-2019 139 M E T E R S E R V I C E Function GOAL ONE Evaluate opportunities and impacts resulting from the AMI implementation. OBJECTIVES 1. Create standard operating procedures for meter retrofits, repairs, and replacements. 2. Develop a customer hand-out explaining how to read an AMI meter. 3. Identify and coordinate with other departments, impacted by the transition to AMI. GOAL TWO Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation OBJECTIVES 1. Verify meter lid sizes, meter size, and lay length in preparation of future AMI phases. 2. Identify and document concerns with existing meter locations and resolve any issues prior to the account being scheduled for an AMI installation. 3. Provide recommendations for Engineering for future phases of AMI implementation regarding areas of priority and routes, including new construction. GOAL THREE Develop a Proactive Meter Testing Program OBJECTIVES 1. Develop a report to monitor the number of small meters (less than 2 inches) being tested and track efficiency results in compliance with AWWA standards. 2. Conduct an audit of 10% of the large meter accuracy to ensure compliance with AWWA standards. Goals and Objectives Meter Service is responsible for reading all District meters monthly for billing, on-site customer meter-related requests and customer service assistance. FISCAL YEAR BUDGET 2018-2019 139 140 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Develop Employee Knowledge and Skills Using the New AMI Meter Reading Equipment and Processes -Meter readers completed training to perform Customer Services duties. -Trained meter readers on new hand-held device for the AMI project. -Completed commercial driver’s training so meter readers can test for class B license. Goal 2 – Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation -Documented meter lid sizes for ordering future phases. -Identified and documented concerns with existing meter locations. Goal 3 – Provide Highly Professional and Timely Responses to Request for On-site Customer Service Requests -Responded to all customer requests within two hours. -Empowered employees to be flexible, make decisions, and have the confidence to go above and beyond for customers. SIGNIFICANT CHANGES • One-Third of the District has been Converted to the New AMI Platform LEVELS OF SERVICE The Meter Services’ Program has two KPI metrics that are associated with the District’s Goals and Objectives of: • Strive to Provide World Class Customer Relations (III-B) • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Meter Service Program Program Budget Allocation $283,000 FISCAL YEAR BUDGET 2018-2019 141 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 III-B Respond to customer requests for assistance within 2 hours 100%100%100%100% IV-C Number of employees trained on the AMI project 4 4 4 3 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 222,017 $ 228,000 $ 228,000 $ 178,000 $ (50,000)-22% 5103 Overtime 7,604 20,000 20,000 10,000 (10,000)-50% 5200 Benefits 93,997 135,000 142,000 80,000 (55,000)-41% OPERATING EXPENSES 6201 Materials & Supplies 1,385 3,000 3,000 2,000 (1,000)-33% 6202 Tools 164 1,000 1,000 3,000 2,000 200% 6301 Contract Services 5,250 5,000 5,000 5,000 - 0% 6307 Uniforms 3,205 3,000 6,000 3,000 - 0% 6402 Telephone 949 2,000 2,000 2,000 - 0% 6502 Professional Development - - - - - 0% METER SERVICES TOTAL $ 334,571 $ 397,000 $ 407,000 $ 283,000 $ (114,000)-29% 142 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY EN G I N E E R I N G VARIEGATED JADE PLANT Crassula ovata ‘Variegata’ In late winter to early spring, white star-shaped flowers with pink overtones grow in showy clusters at the ends of the Variegated Jade Plant’s branches. Drought tolerant and a native of South Africa, this shrub can grow up to 4 feet tall. Engineering HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Structure Engineering Implements Infrastructure Projects Needed to Provide Safe & Reliable Services Director of Engineering& Operations Sr. Engineer Associate Engineer Sr. AdministrativeAssistant EngineeringTechnician II Sr. EngineeringTechnician Program Personnel Director of Engineering & Operations 1 Senior Engineer 1 Associate Engineer 1 Senior Engineering Technician 1 Engineering Technician II 1 Senior Administrative Assistant 1 Total Full Time 6 FISCAL YEAR BUDGET 2018-2019 145 E N G I N E E R I N G Function GOAL ONE Develop and Implement the District’s Capital Improvement Program to address rehabilitation and maintenance needs while also preparing for new development OBJECTIVES 1. Develop a 5-year CIP based on the updated Water and Wastewater Master Plan. 2. Establish tracking methods to monitor necessary planning and execution of utility relocations in conjunction with public works projects. 3. Update the development guidelines to serve as a tool for both developers and staff. GOAL TWO Develop and expand workflow procedures to maximize inter- departmental communication and cooperation with Engineering OBJECTIVES 1. Hold at least semi-annual meetings to maximize data collection regarding mapping updates and field conditions in preparation of the CIP. 2. Participate in trainings and assist with the creation of an Operating Guide for GPS equipment to enhance GIS asset accuracy. 3. Develop processes to facilitate efficient workflow systems while maintaining operational flexibility. GOAL THREE Support the steps necessary for the advancement of the SNRC OBJECTIVES 1. Implement the terms of the settlement agreement with the City of San Bernardino. 2. Lead the process and site design efforts for configuration of the facility. 3. Continue working with regulatory agencies to receive needed approvals and permits. Goals and Objectives Engineering is responsible for planning and overseeing infrastructure projects designed to maintain safe and reliable water and wastewater services. Staff manages the capital improvement program, coordinates with new development, and provides technical support for the infrastructure system. FISCAL YEAR BUDGET 2018-2019 145 146 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Provide Leadership In Implementation of CIP in Compliance with the SWRCB -Replaced a 30” diameter section of North Fork Santa Ana River pipeline -Completed the 4th Street wastewater main rehabilitation -City Creek Manhole Rehabilitation Project completed -Substantial completion of the design for the Plant 134 to Upper Zone water transmission main -Initiated an engineering evaluation of alternatives to improve sludge management at Plant 134 -Supported activities related to SNRC -Paloma Road wastewater main rehabilitation phase II completed -Substantial completion of the AMI Meter Retrofit Program – Phase II Goal 2 – Foster Partnership Opportunities with Surrounding Agencies and Other Stakeholders to Provide Benefit to the District and the Region -Completed the Plant 134 State Water Project Turnout and Hydro-Electric Facility Joint Project with Valley District -Completed the Water Main Extension Joint Project with Pumalo Casa Owners Association -Completed the Joint Project with NFWC for the Replacement of a section of 30” pipe crossing the Santa Ana River SIGNIFICANT CHANGES • New Director of Engineering & Operations joined the District • Construction Project Coordinator retired after 35 years of dedicated service • Added the Associate Engineer position to improve the department’s capacity to execute capital projects LEVELS OF SERVICE The Engineering Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) • Strive to Provide World Class Customer Relations (III-B) Engineering Program Program Budget Allocation $1,521,000 FISCAL YEAR BUDGET 2018-2019 147 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-A Initiate fully funded projects included in the current year CIP 100%80%100%100% IV-C Complete current year updates to GIS base maps 100%-25%80% III-B Complete development infrastructure plan reviews in < 14 days 100%-100%100% III-B Issue development impact fee costs estimates in <2 days 100%100%100%100% PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 786,784 $ 712,000 $ 712,000 $ 707,000 $ (5,000)-1% 5102 Temporary Labor 814 - - - - 0% 5103 Overtime 3,749 2,000 2,000 2,000 - 0% 5200 Benefits 257,984 350,000 409,000 263,000 (87,000)-25% OPERATING EXPENSES 6201 Materials & Supplies 739 10,000 10,000 11,000 1,000 10% 6202 Tools 62 7,000 7,000 7,000 - 0% 6203 Office Supplies 7,028 7,000 7,000 7,000 - 0% 6301 Contract Services 130,149 238,000 238,000 240,000 2,000 1% 6303 Printing & Publishing 277 3,000 3,000 6,000 3,000 100% 6304 Legal Services 27,745 40,000 40,000 40,000 - 0% 6307 Uniforms 3,109 5,000 5,000 5,000 - 0% 6402 Telephone 2,904 2,000 2,000 2,000 - 0% 6405 Permits 96,320 120,000 120,000 193,000 73,000 61% 6406 Postage 12 1,000 1,000 1,000 - 0% 6501 Membership & Dues 405 3,000 3,000 4,000 1,000 33% 6502 Professional Development 3,595 24,000 24,000 30,000 6,000 25% 6504 Meetings 90 3,000 3,000 3,000 - 0% ENGINEERING TOTAL $ 1,321,766 $ 1,527,000 $ 1,586,000 $ 1,521,000 $ (6,000)0% 148 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WA T E R PR O D U C T I O N BLUE CURLS Echevaria ‘Blue Curls’ Native to semi-desert areas of Central America, the Echevaria ‘Blue Curls’ is presumed to be an Echeveria gibbiflora hybrid. Its rosettes take on showy pink hues in spring and fall. Water Production HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Operations Manager 1 Senior Water Production Operator 1 Water Production Operator III 3 Water Production Operator I 1 Administrative Assistant 1 Total Full Time 7 Program Structure Water Production is Responsible for Monitoring and Operating the Entire Water System Sr. Water ProductionOperator Water Production Operator III Water Production Operator I Administrative Assistant Oeration Manager FISCAL YEAR BUDGET 2018-2019 151 W A T E R P R O D U C T I O N Function GOAL ONE Develop a water supply mix plan to maximize surface water OBJECTIVES 1. Develop a plan to forecast monthly water demands to assist with determining the actual water supply mix. 2. Take recommendations from the Water Master Plan and develop an action plan focusing on redundancy, efficiency, and flexibility. 3. Partner with Southern California Edison (SCE) to prepare for changes in electricity rates and maximize the time-of-use structure. GOAL TWO Implement improvements to enhance the SCADA system OBJECTIVES 1. Complete the SCADA Master Plan. 2. Identify projects and programs for implementation based on the SCADA Master Plan. GOAL THREE Develop a plan to address challenges and opportunities related to North Fork Water Company (NFWC) OBJECTIVES 1. Begin working with active North Fork shareholders to initiate planning for the transition of their water supply from the ditch to the District’s system. 2. Evaluate current North Fork infrastructure and determine responsibilities relating to ownership. 3. Better understand the District’s Bear Valley Mutual shareholder delivery obligations. Goals and Objectives Water Production is responsible for the daily monitoring and operations of the entire water production system. This program ensures the timely preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro-pneumatic plants, and the Supervisory Control and Data Acquisition (SCADA) system. Staff also operates the North Fork Canal. FISCAL YEAR BUDGET 2018-2019 151 152 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Ensure System Reliability Through Routine System Inspections and Testing -Cla-Val (pressure regulator) maintenance. 15 valves have been rehabilitated. -Two reservoirs were inspected by a licensed diver. Worked with a contractor to make structural repairs on one of the reservoirs. -Cathodic Protection inspection has been completed on all reservoirs. Repairs were made on 10 tanks to prevent corrosion. -Worked with maintenance staff and a tank diver to replace a 10-inch influent flow valve at Plant 56. -Rehabilitated 1 well and 8 booster pumps. Goal 2 – Continue to Evaluate SCADA and Implement Improvements as Appropriate -Implemented a new maintenance agreement with the SCADA integrator. -Worked with the SCADA contractor and IT department to remove and relocate the SCADA server from the Del Rosa yard. Goal 3 – Partner with Southern California Edison to Identify and Utilize Equipment Rehabilitation Incentives -Participated in numerous Southern California Edison energy reduction programs. SIGNIFICANT CHANGES • Increased Water Production Transmission & Distribution chemicals 10% due to cost. • Increased Water Production Administration Contract Services 20% for SCADA support and upgrades. LEVELS OF SERVICE The Water Production Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Dedicate Effort Towards System Maintenance and Modernization (IV-C) • Enable Fact-Based Decision Making Through State-of-the-Art Data Management (IV-D) • Pursue Alternative Funding Sources (II-C) Water Production Program Program Budget Allocation $4,378,000 FISCAL YEAR BUDGET 2018-2019 153 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-C Contract for yearly reservoir inspections 4 4 4 3 IV-C Perform or schedule repairs recommended by inspection reports 100%100%100%100% IV-D Implement available SCADA Soft updates 100%100%100%100% II-C Investigate and identify incentive opportunities with Southern California Edison staff 3 3 3 0 PROGRAM BUDGET DETAIL (ADMINISTRATION) FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 202,494 $ 216,000 $ 216,000 $ 223,000 $ 7,000 3% 5103 Overtime 1,069 1,000 1,000 1,000 - 0% 5104 Standby 14,562 20,000 20,000 15,000 (5,000)-25% 5200 Benefits 146,813 97,000 105,000 106,000 9,000 9% OPERATING EXPENSES 6201 Materials & Supplies 453 - - - - 0% 6202 Tools 2,722 5,000 5,000 5,000 - 0% 6203 Office Supplies 5,973 4,000 4,000 4,000 - 0% 6301 Contract Services 23,774 85,000 85,000 101,000 16,000 19% 6307 Uniforms 11,439 12,000 12,000 10,000 (2,000)-17% 6402 Telephone 11,196 14,000 14,000 14,000 - 0% 6405 Permits - - - - - 0% 6501 Membership & Dues 90 3,000 3,000 3,000 - 0% 6502 Professional Development 9,387 6,000 6,000 6,000 - 0% 6503 Education Assistance - 5,000 5,000 5,000 - 0% 6504 Meetings 1,070 1,000 1,000 1,000 - 0% ADMINISTRATION TOTAL $ 431,042 $ 469,000 $ 477,000 $ 494,000 $ 25,000 5% 154 EAST VALLEY WATER DISTRICT PROGRAM BUDGET DETAIL (SOURCE OF SUPPLY/WELLS) FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 305,004 $ 270,000 $ 270,000 $ 177,000 $ (93,000)-34% 5103 Overtime 22,288 25,000 25,000 25,000 - 0% 5200 Benefits 58,883 113,000 156,000 77,000 (36,000)-32% OPERATING EXPENSES 6101 Purchased Water 1,012,841 500,000 500,000 500,000 - 0% 6102 Groundwater Replenishment 160,680 163,000 163,000 445,000 282,000 173% 6103 Water Assessment 135,938 138,000 138,000 122,000 (16,000)-12% 6201 Materials & Supplies 13,970 45,000 45,000 45,000 - 0% 6204 Chemicals 92,592 150,000 150,000 150,000 - 0% 6301 Contract Services 26,958 150,000 150,000 150,000 - 0% 6402 Telephone 666 - - - - 0% 6403 Electricity 1,023,896 1,000,000 1,000,000 1,000,000 - 0% 6405 Permits 72,329 100,000 100,000 100,000 - 0% SOURCE OF SUPPLY/ WELLS TOTAL $ 2,926,045 $ 2,654,000 $ 2,697,000 $ 2,791,000 $ 137,000 5% PROGRAM BUDGET DETAIL (BOOSTING AND PUMPING) FY 2016-17 Actuals FY 2017-18 Budget FY 2017-18 Projected FY 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 84,748 $ 92,000 $ 92,000 $ 86,000 $ (6,000)-7% 5103 Overtime 12,419 5,000 5,000 10,000 5,000 100% 5200 Benefits 19,107 34,000 46,000 36,000 2,000 6% OPERATING EXPENSES 6201 Materials & Supplies 21,982 20,000 20,000 20,000 - 0% 6301 Contract Services 24,742 75,000 75,000 75,000 - 0% 6403 Electricity 433,612 500,000 500,000 500,000 - 0% BOOSTING & PUMPING TOTAL $ 596,610 $ 726,000 $ 738,000 $ 727,000 $ 1,000 0% FISCAL YEAR BUDGET 2018-2019 155 PROGRAM BUDGET DETAIL (TRANSMISSION AND DISTRIBUTION) FY 2016-17 Actuals FY 2017-18 Budget FY 2017-18 Projected FY 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 117,206 $ 92,000 $ 92,000 $ 163,000 $ 71,000 77% 5103 Overtime 11,941 5,000 5,000 25,000 20,000 400% 5200 Benefits 23,106 26,000 30,000 73,000 47,000 181% OPERATING EXPENSES 6201 Materials & Supplies 11,300 10,000 10,000 10,000 - 0% 6204 Chemicals 39,085 45,000 45,000 50,000 5,000 11% 6301 Contract Services 40,842 45,000 45,000 45,000 - 0% TRANSMISSION & DISTRIBUTION TOTAL $ 243,480 $ 221,000 $ 227,000 $ 366,000 $ 143,000 64% TOTAL WATER PRODUCTION $ 4,196,107 $ 4,071,000 $ 4,138,000 $ 4,378,000 -- 156 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WA T E R TR E A T M E N T MEXICAN SNOW BALL Echeveria Elegans The Echeveria Elegans is a species from the Crassulaceae family, native to semi-desert habitats in Mexico. It thrives in subtropical climates such as those of Southern California. Water Treatment HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Water Production Supervisor 1 Senior Treatment Plant Operator 1 Total Full Time 2 Program Structure Water Treatment is Responsible for Treating the Three Sources of Supply Water Production Supervisor Sr. Treatment Plant Operator Operations Manager FISCAL YEAR BUDGET 2018-2019 159 W A T E R T R E A T M E N T Function GOAL ONE Incorporate operation and maintenance of the Hydro-Generation Technology at Plant 134 OBJECTIVES 1. Develop an Operating Guide to support safe and effective procedures. 2. Participate in trainings regarding the hydro-generation technology. 3. Incorporate the upkeep and inspection of equipment into Plant 134’s maintenance schedule. GOAL TWO Complete Plant 134 Membrane Replacement Phase Two of the 5-Year Replacement Plan OBJECTIVES 1. Identify the modules to be replaced in Phase Two. 2. Procure the needed membranes modules from the manufacturer in accordance with the District’s purchasing policy. 3. Coordinate and schedule the in-house installation of the new membranes. GOAL THREE Support the Development of a long-term Plant 134 Site Improvement Plan OBJECTIVES 1. Coordinate with Engineering to identify a capital project to enhance sludge removal. 2. Identify elements that will enhance site security. 3. Provide support to begin implementing these planning efforts. 4. Help identify and implement the additional treatment processes needed to maintain high water quality. Goals and Objectives Water Treatment is responsible for using various methods to treat the three different sources of supply used by the District. Staff is trained to operate the Surface Water Treatment Plant 134 to maximize both Santa Ana River water and imported State Project water. Staff also operates two unique groundwater treatment facilities, Plant 28 uses Granular Activated Carbon (GAC) and Plant 39 is a blending facility. FISCAL YEAR BUDGET 2018-2019 159 160 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Identify Process Improvements at Plant 134 to Improve Water Quality -Worked with the SCADA contractor to replace two touch-screen computers that control Plant 134. -Replaced two backwash motors and worked with GE for membrane filter replacements. -Relocated a strainer to protect membrane filters. -Replaced a chlorine pump skid. Goal 2 – Evaluate Use of Hydro-Generation Technology at Plant 134 -•Worked with a contractor on the hydro-generation start-up and commissioning at Plant 134. -•Investigated the best options for use of water from the North Fork Canal. Goal 3 – Develop an Operations Process and Procedures Manual for the New Hydro-Generators to Use for Staff Training -Provided all operators with hands-on training at the treatment plant as the project progressed. SIGNIFICANT CHANGES • 20% decrease in Contract Services since only two of the four vessels at Plant 28 will need GAC change out this year. • Increase in uniform budget due to no amount specified last year. Treatment uniforms were charged to Production which will result in a decrease for Production. LEVELS OF SERVICE The Water Treatment Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) • Maximize Staff Capabilities through On-going Professional Development (I-B) Water Treatment Program Program Budget Allocation $848,000 FISCAL YEAR BUDGET 2018-2019 161 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-A Meet all regulatory requirements 100%100%90%100% IV-A Maximize utilization of plant capacity through minimization of downtime and monitoring of raw water 7.5 MGD 4.0 5.0 3.0 IV-C Percentage of plant equipment and motors on preventative maintenance schedules 100%75%100%100% I-B Number of Production staff with T-4 certification or higher 4 2 2 2 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 222,087 $ 237,000 $ 237,000 $ 214,000 $ (23,000)-10% 5103 Overtime 12,216 10,000 18,000 25,000 15,000 150% 5200 Benefits 78,410 92,000 115,000 95,000 3,000 3% OPERATING EXPENSES 6201 Materials & Supplies 13,910 15,000 15,000 15,000 - 0% 6204 Chemicals 129,450 150,000 150,000 150,000 - 0% 6301 Contract Services 97,822 186,000 326,000 147,000 (39,000)-21% 6307 Uniforms 931 - - 2,000 2,000 100% 6402 Telephone 12,211 - - - - 0% 6403 Electricity 77,715 200,000 200,000 200,000 - 0% 6405 Permits - - - - - 0% WATER TREATMENT TOTAL $ 644,752 $ 890,000 $ 1,061,000 $ 848,000 $ (42,000)-5% 162 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WA T E R QU A L I T Y PRIDE OF MADEIRA Echium Fastuosum Rapidly growing and drought tolerant, Echium Fastuosum flowers bloom in spring and summer reaching heights of up to 20 inches. Water Quality HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Water Quality Coordinator 1 Water Quality Technician 1 Total Full Time 2 Program Structure Water Quality Complies with all Required Drinking Water Regulations Water Quality Coordinator Water Quality Technician Operations Manager FISCAL YEAR BUDGET 2018-2019 165 W A T E R Q U A L I T Y Function GOAL ONE Conduct Expanded Sampling Programs to Ensure in Compliance with all State and Federal Water Quality Requirements OBJECTIVES 1. Conduct unregulated contaminant sampling to comply with Federal water quality standards. 2. Identify 50 properties to support completion of the expanded Lead and Copper testing to reflect requirements based on the District’s population. 3. Conduct Tri-Annual Lead and Copper Testing of at least 50 properties within the District. 4. Comply with the Action Plan for the TTHM Corrective Order. GOAL TWO Implement the Mandatory Lead Sampling in Schools Program as Required by Assembly Bill 746. OBJECTIVES 1. Establish sampling sites and corresponding schedules for schools required to be tested. 2. Develop technical and communication support in preparation for a school(s) that exceeds lead sampling levels. (PA) 3. Complete sampling as required by the legislation. GOAL THREE Implement an In-House Environmental Controls and Compliance Program OBJECTIVES 1. Evaluate processes used by other agencies to assist with FOG program implementation in conjunction with SNRC. 2. Develop data tracking methods to monitor the backflow testing cost-benefit analysis and resource requirements. 3. Identify and promote back-flow testing to the 5 largest customers in support of transitioning the program to in-house resources. (PA) Goals and Objectives Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages Backflow Prevention, Water Sampling and testing, and Fire Hydrant Flushing Programs. FISCAL YEAR BUDGET 2018-2019 165 166 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Provide Safe and Reliable Water to Our Customers -Worked with contractors to reline the interior, replace the filter nozzles, valves, and Activated Carbon in 4 vessels at Plant 28. -Completed 10 months of advanced treatment process pilot to assist in full scale evaluation. Goal 2 – Convert Flush-out Valves to Control Discharge Flows -Completed 9 of the 12 flush-out retrofits to date. Goal 3 – Evaluate New Backflow Program and Determine Effectiveness -Taken on annual testing of 372 backflow devices (Fire Service, District Facilities, Customer Owned Devices) -Increased customer participation in Backflow Testing Service to 8%. SIGNIFICANT CHANGES • Contract Services increased 7% to meet sampling requirements for Disinfection By-Products such as TTHMs. • Additional 25% increase in contract services for EPA multi-year Unregulated Contaminant Monitoring Rule (UCMR 4) sampling. • Increased Contract Services by $4,000 for Tri-annual lead and copper sampling. LEVELS OF SERVICE The Water Quality Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Strive to Provide World Class Customer Relations (III-B) • Maximize Staff Capabilities through On-going Professional Development (I-B) Water Quality Program Program Budget Allocation $434,000 FISCAL YEAR BUDGET 2018-2019 167 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-A Conduct all water quality sampling required by SWRCB and EPA 100%100%100%100% IV-A Promote Customer Participation in District’s Backflow Testing Program 5%/Yr N/A 3%8% III-B Response time to water quality complaints by customers (avg)2.0 Hrs.1.5 Hrs.1.5 Hrs.1.5 Hrs. I-B Number of Water Quality program staff with D-3 certification or higher 2 2 2 2 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 82,854 $ 88,000 $ 88,000 $ 84,000 $ (4,000)-5% 5103 Overtime 6,626 5,000 10,000 7,000 2,000 40% 5200 Benefits 30,212 38,000 48,000 33,000 (5,000)-13% SOURCE OF SUPPLY WELLS OPERATING EXPENSES 6201 Materials & Supplies 9,517 13,000 13,000 13,000 - 0% 6301 Contract Services 93,730 72,000 72,000 110,000 38,000 53% 6307 Uniforms 1,553 4,000 4,000 4,000 - 0% 6504 Meetings - 1,000 1,000 1,000 -0% TRANSMISSION AND DISTRIBUTION PERSONNEL EXPENSES 5101 Regular Labor 86,517 88,000 88,000 84,000 (4,000)-5% 5103 Overtime 329 5,000 5,000 8,000 3,000 60% 5200 Benefits 20,695 38,000 38,000 33,000 (5,000)-13% TRANSMISSION AND DISTRIBUTION OPERATING EXPENSES 6201 Materials & Supplies 687 - - - - 0% 6202 Tools 1,063 5,000 5,000 5,000 - 0% 6301 Contract Services 31,611 44,000 44,000 45,000 1,000 2% 6406 Postage 2,224 2,000 2,000 2,000 - 0% 6503 Education Assistance - 7,000 7,000 5,000 (2,000)-29% WATER QUALITY TOTAL $ 367,618 $ 410,000 $ 425,000 $ 434,000 $ 24,000 6% 168 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY WA T E R MA I N T E N A N C E CALIFORNIA POPPY Eschscholzia Californica Often used medicinally and in cooking, the Eschscholzia Californica became the official state flower of California in 1903. It is native to the United States and Mexico. Water Maintenance HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Field Service Supervisor 1 Senior Field Service Worker 2 Field Service Worker III 4 Field Service Worker II 5 Field Service Worker I 2 Storekeeper/Buyer 1 Total Full Time 15 Program Structure Water Maintenance Maintains the District’s Water Transmission and Distribution System Field Services Supervisor Sr. Field Service Worker Storekeeper/Buyer Field Service Worker III Field Service Worker II Field Service Worker I Operations Manager FISCAL YEAR BUDGET 2018-2019 171 W A T E R M A I N T E N A N C E Function GOAL ONE GPS all valves and meter boxes within the service area OBJECTIVES 1. Conduct training and create an Operating Guide for GPS equipment. 2. Complete the GPS location of all valves and meter boxes on a grid basis within three years. 3. Field verify 5% AMI meter GPS locations conducted by a contractor. GOAL TWO Review data accuracy compared to actual field conditions OBJECTIVES 1. Conduct field surveys to validate GIS data with the District’s border 2. Improve on the existing field verification and correction process to ensure information is updated within 30 days. 3. Enhance GIS capabilities in field vehicles. GOAL THREE Facilitate Technology Trainings and Community Engagement OBJECTIVES 1. Assist with the implementation of the small-scale facility tour program. 2. Ensure staff receives emergency preparedness radio training. 3. Attend trainings for City Works to provide for a strong technical foundation and encourage professional development. Goals and Objectives Water Maintenance is responsible for the repair and replacement of the District’s water distribution mains, water service lines, fire hydrants, meters, valves, and all related equipment. FISCAL YEAR BUDGET 2018-2019 171 172 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Evaluate All Preventative Maintenance Programs (Valve Exercising and Hydrant Maintenance) and Determine Effectiveness -Repaired 211 water leaks. -Responded to 956 after hour calls. -Repaired or Replaced 31 large vault lids. -Completed routine maintenance on 1,252 fire hydrants. -Inspected/exercised 988 valves. -Assisted the Engineering department with water and Wastewater Master Plan updates. -Scheduled in-house main replacement job on Taylor Road. Goal 2 – Partner with Local Agencies to Enhance Community Services -Created a list of resources available in the event of an emergency. -Continued to maintain contact with Patton Hospital and be a resource for routine maintenance and emergencies. Goal 3 – Encourage Continued Education and Technology Training to Support Advancement Opportunities -Cross-trained the Senior Field Service Worker during the absence of the Supervisor. -Taken on the supervisory responsibilities of the Storekeeper/Buyer. -Completed Phase I of AMI project resulting in a meter reader reclassification to a Field Maintenance worker in the new Fiscal Year. -Increased employees level of Water Distribution, Treatment, and Collections Certifications. -Attended Tri-State CWEA conference. SIGNIFICANT CHANGES • 10% increase for materials and supplies for warehouse inventory • The Storekeeper/Buyer position moved from the Finance department budget. LEVELS OF SERVICE The Water Maintenance Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort Towards System Maintenance and Modernization (IV-C) • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Advance Emergency Preparedness Efforts (III-A) Water Maintenance Program Program Budget Allocation $2,549,000 FISCAL YEAR BUDGET 2018-2019 173 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-A Provide timely response and assessment of customer leak concerns (avg. time).4 hrs 100%90%95% IV-C Exercise a set number of gate valves each year to help ensure equipment readiness and functionality 1,200 1,200 1,200 1,200 I-B Number of Water Maintenance staff with D-3 certifications or higher.5 3 3 6 III-A Average annual equipment and safety training hours per staff member 16 16 16 16 PROGRAM BUDGET DETAIL (FIELD MAINTENANCE ADMINISTRATION) FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 113,529 $ 114,000 $ 114,000 $ 177,000 $ 63,000 55% 5103 Overtime - - 15,000 20,000 20,000 100% 5104 Standby 22,386 20,000 20,000 20,000 - 0% 5200 Benefits 41,484 45,000 56,000 90,000 45,000 100% OPERATING EXPENSES 6203 Office Supplies 838 3,000 3,000 3,000 - 0% 6303 Printing & Publishing - - - - - 0% 6307 Uniforms - - - 1,000 1,000 100% 6402 Telephone 15,803 21,000 21,000 21,000 - 0% 6501 Memberships & Dues 542 2,000 2,000 2,000 - 0% 6502 Professional Development 18,036 14,000 14,000 9,000 (5,000)-36% 6503 Education Assistance 557 - - - - 0% 6504 Meetings 1,661 1,000 1,000 2,000 1,000 100% FIELD MAINTENANCE ADMINISTRATION TOTAL $ 214,836 $ 220,000 $ 246,000 $ 345,000 $ 125,000 57% 174 EAST VALLEY WATER DISTRICT PROGRAM BUDGET DETAIL (TRANSMISSION & DISTRIBUTION) FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 804,287 $ 784,000 $ 784,000 $ 925,000 $ 141,000 18% 5103 Overtime 183,722 150,000 105,000 130,000 (20,000)-13% 5200 Benefits 373,762 417,000 485,000 454,000 37,000 9% OPERATING EXPENSES 6201 Materials & Supplies 229,845 210,000 210,000 230,000 20,000 10% 6202 Tools 25,065 11,000 11,000 11,000 - 0% 6301 Contract Services 14,175 29,000 29,000 34,000 5,000 17% 6307 Uniforms 19,463 20,000 20,000 20,000 - 0% 6310 Street Services 188,665 400,000 400,000 400,000 - 0% 6405 Permits 18,863 - - - - 0% TRANSMISSION & DISTRIBUTION TOTAL 1,857,847 2,021,000 2,044,000 2,204,000 183,000 9% WATER MAINTENANCE TOTAL $ 2,072,683 $ 2,241,000 $ 2,290,000 $ 2,549,000 $ 308,000 14%% WA S T E W A T E R MA I N T E N A N C E FRED IVES’ Graptoveria Depending on the time of year, Graptoveria ‘Fred Ives’ flowers vary in color. A purplish yellow-orange to blue green hue is apparent during autumn. Wastewater Maintenance HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Field Service Worker III 2 Field Service Worker II 2 Total Full Time 4 Program Structure Water Maintenance Maintains the District’s Water Transmission and Distribution System Field Service Worker III Field Service Worker II Operations Manager FISCAL YEAR BUDGET 2018-2019 177 W A S T E W A T E R M A I N T E N A N C E Function GOAL ONE Complete Implementation of GraniteNet Software to Collect Data Regarding Wastewater Collection System Maintenance OBJECTIVES 1. Document discrepancies in GIS to ensure consistency with field conditions. 2. Conduct training for all staff utilizing the GraniteNet Software. 3. Conduct semi-annual meetings to discuss data results with Engineering in preparation of capital improvement projects. GOAL TWO Identify Operational Changes Needed to Accommodate Planned Development within the District OBJECTIVES 1. Assist with the development of initial staffing and equipment planning that considers the SNRC. 2. Document contributing factors of high maintenance areas in preparation for the in-house Fats, Oils, and Grease (FOG) Program. 3. Identify training and certification requirements for wastewater treatment certificates. GOAL THREE Incorporate GPS Data to Enhance Efficiency of Wastewater Maintenance Operations and Asset Management OBJECTIVES 1. Gather the GPS location of all manhole covers and siphons. 2. Identify manholes located within easements and implement planned maintenance to reduce damage caused by tree roots and other field conditions. 3. Conduct training and create an Operating Guide for GPS equipment. Goals and Objectives Wastewater Maintenance is responsible for the daily repair and safeguarding of the wastewater conveyance system. Based on the Wastewater System Maintenance Plan, crews complete preventative video monitoring, scheduled maintenance, system repairs, and emergency repairs. FISCAL YEAR BUDGET 2018-2019 177 178 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Utilize Granite Net Software to Document Wastewater Collection System Maintenance -Video inspected 58 miles of sewer main. -Made initial assessments of pipe conditions and recommendations for repairs. -Began documentation of discrepancies on GIS maps with Engineering. -Downloaded video logs and scheduled routine follow-up meetings with Engineering to discuss repairs and map corrections. Goal 2 – Support Future Wastewater Monitoring Operations by Evaluating Fats, Oils and Grease (FOG) Entering the District’s Wastewater Collection System -Staff began researching requirements to begin the compliance process of the FOG program. Goal 3 – Continue Wastewater Collection System Maintenance and Management -Cleaned 200 miles of sewer main. -Sprayed 1,936 manholes for insect control. -Sprayed 3,688 feet of sewer main for root control. SIGNIFICANT CHANGES • 5% increase in Contract Services for repairs. LEVELS OF SERVICE The Wastewater Maintenance Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Dedicate Effort towards System Maintenance and Modernization (IV-C) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Maximize Internal Capabilities through Ongoing Professional Development. (I-B) Wastewater Maintenance Program Program Budget Allocation $8,996,000 FISCAL YEAR BUDGET 2018-2019 179 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-C Miles of wastewater line annually inspected by video.60 66 72 70 IV-C Miles of wastewater main jetted/cleaned annually.220 227 223 200 IV-A Number of Category 1 Sanitary System Overflows reportable to the State Water Resources Control Board. 0 0 0 0 I-B Number of field maintenance staff with CWEA wastewater certifications 4 1 5 5 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 226,137 $ 280,000 $ 280,000 $ 290,000 $ 10,000 4% 5103 Overtime 13,576 3,000 35,000 45,000 42,000 1400% 5200 Benefits 36,186 144,000 144,000 146,000 2,000 1% OPERATING EXPENSES 6201 Materials & Supplies 28,847 30,000 30,000 31,000 1,000 3% 6202 Tools 6,362 5,000 5,000 5,000 - 0% 6301 Contract Services 113,935 228,000 228,000 243,000 15,000 7% 6307 Uniforms 1,346 3,000 3,000 3,000 - 0% 6305 Treatment Services 8,128,030 7,900,000 7,900,000 8,233,000 333,000 4% WASTEWATER MAINT. TOTAL $ 8,554,419 $ 8,593,000 $ 8,625,000 $ 8,996,000 $ 403,000 5% 180 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY FA C I L I T I E S MA I N T E N A N C E PINK DAYLILY Hemerocallis hybrid ‘Pink Daiquiri’ Drought resistant and fast growing, daylily flowers open early morning and dwindle during the following night, replaced by another flower on the same stalk. Native of Asia, including China, Korea, and Japan. Facilities Maintenance HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Facilities Maintenance Coordinator 1 Facilities Maintenance Worker 1 Total Full Time 2 Program Structure Facilities Maintenance Repairs and Maintains All District Facilities Facilities Maintenance Coordinator Facilities Maintenance Worker Operations Manager FISCAL YEAR BUDGET 2018-2019 183 F A C I L I T I E S M A I N T E N A N C E Function GOAL ONE Develop a long-term Plant 134 Site Improvement Plan OBJECTIVES 1. Conduct a site assessment to evaluate site security, technology, and miscellaneous needs. 2. Prioritize site projects and develop an improvement schedule. 3. Develop a recommendation to enhance perimeter security around the treatment plant. GOAL TWO Develop a Facilities Maintenance Program to track and anticipate future costs associated with all District Facilities OBJECTIVES 1. Identify potential Facilities Maintenance Programs and recommend a qualified firm. 2. Begin incorporating facilities data into the selected Facilities Maintenance Program. 3. Implement a consistent request tracking system and provide training to staff. 4. Develop recommendations to be included in a long-term staffing plan. GOAL THREE Complete Systematic Upgrades and Rehabilitation of District Facilities OBJECTIVES 1. Assess and prioritize needed improvements by location and project. 2. Select sites for immediate repairs and identify the correlating schedule. 3. Conduct repairs for the highest priority sites within the approved budgeted funds. Goals and Objectives Facilities Maintenance is responsible for the complete Maintenance and repair of all District Facilities, including Administration Buildings, Water Facilities, District-owned vacant properties and easements. FISCAL YEAR BUDGET 2018-2019 183 184 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Explore Alternative Energy Solutions for District Facilities -Upgraded lighting to cost effective LED lighting -Added new lighting and sign in the Demonstration Garden. -Added heat resistant roofing material at Plants 24, 24B, 99, and 108 to reduce energy costs. Goal 2 – Identify Two District Facilities for Upgrades and Repairs -Road rehabilitation to Plant 99. -Slurry coats at Plant 99 and 129. -Roof replacements on pump houses at Plants 24, 24B, 99, and 108. -Plant 134 exterior paint and Hydro-generation building paint and floor epoxy. -New concrete driveway installed at Plant 24 to access mini park. -Painted Plant 24. -Removed swamp coolers at Plant 39 and installed HVAC system to correct moisture issues. Goal 3 – Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with all District Facilities -Captured asset data for entry into CityWorks for facilities maintenance planning. SIGNIFICANT CHANGES • Increased Rents and Leases budget due to off-site storage. • Increased Contract Services budget $85,000 due to night security guard at Plant 134. LEVELS OF SERVICE The Facilities Maintenance Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) • Identify Opportunities to Optimize Natural Resources (I-A) Facilities Maintenance Program Program Budget Allocation $961,000 FISCAL YEAR BUDGET 2018-2019 185 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-C Close all service work orders timely <30 days N/A N/A <30 days IV-C Reduce the number of reworks on service work orders <10%N/A N/A N/A IV-C Ensure preventative maintenance is completed on time 100%N/A N/A 100% I-A Reduce energy consumption for each facility site >20%N/A N/A 25% **N/A Represents new KPIs for FY 2017-18 with no historical data available PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 91,009 $ 97,000 $ 89,000 $ 147,000 $ 50,000 52% 5103 Overtime 19,722 25,000 25,000 15,000 (10,000)-40% 5200 Benefits 52,547 44,000 37,000 79,000 35,000 80% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 41,309 25,000 25,000 30,000 5,000 20% 6202 Tools 729 2,000 2,000 2,000 - 0% 6301 Contract Services 64,233 34,000 86,000 37,000 3,000 9% 6306 Rents & Leases 10,582 - - 15,000 15,000 100% 6307 Uniforms 11,855 11,000 11,000 11,000 - 0% 6311 Landscape Services 35,526 56,000 56,000 56,000 - 0% 6312 Janitorial Services 74,816 132,000 125,000 132,000 - 0% 6313 Facilities Repair - - - - - 0% 6401 Utilities 16,261 11,000 11,000 14,000 3,000 27% 6402 Telephone 71,681 75,000 75,000 70,000 (5,000)-7% 6403 Electricity 87,463 120,000 120,000 120,000 - 0% 6403 Professional Development - - - 1,000 1,000 100% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 4,735 5,000 5,000 3,000 (2,000)-40% 6301 Contract Services 19,276 5,000 3,850 11,000 6,000 120% 6311 Landscape Services $ 53,307 $ 40,000 $ 40,000 $ 40,000 $ - 0% FACILITIES MAINT. TOTAL $ 761,814 $ 776,000 $ 802,850 $ 961,000 $ 185,000 24% 186 EAST VALLEY WATER DISTRICT FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PUMPS AND BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies $ 6,895 $ 5,000 $ 5,000 $ 3,000 $ (2,000)-40% 6301 Contract Services 9,460 5,000 5,000 6,000 1,000 20% 6311 Landscape Services 46,551 35,000 35,000 35,000 - 0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 7,453 5,000 5,000 8,000 3,000 60% 6301 Contract Services 13,677 15,000 13,000 102,000 87,000 580% 6311 Landscape Services 21,531 14,000 14,000 14,000 - 0% 6401 Utilities 1,196 15,000 15,000 10,000 (5,000)-33% FACILITIES MAINT. TOTAL $ 761,814 $ 776,000 $ 802,850 $ 961,000 $ 185,000 24% FL E E T MA I N T E N A N C E PANCAKE PLANT Kalenchoe Thrysifolia A native from South Africa, the Kalancho Thyrsiflora is a drought tolerant succulent that typically grows to 2 feet tall. Its long rosette leaves resemble stacked pancakes, giving it the nickname Pancake Plant. Fleet Maintenance HUMAN RESOURCES GOVERNING BOARD GENERAL ADMINISTRATION PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE Program Personnel Equipment Mechanic III 1 Total Full Time 1 Program Structure Fleet Maintenance is responsible for care of the District's vehicles and heavy equipment Equipment Mechanic III Operations Manager FISCAL YEAR BUDGET 2018-2019 189 F L E E T M A I N T E N A N C E Function GOAL ONE Enhance emergency response capabilities OBJECTIVES 1. Install two-way radios in all vehicles for emergency preparedness. 2. Ensure all required staff are properly trained on two-way radios and other emergency response equipment. GOAL TWO Utilize the most effective fleet maintenance methods OBJECTIVES 1. Implement the transition from in-house operations to preventative maintenance contractor. 2. Purchase and install GPS tracking system on all vehicles. 3. Integrate the vehicle replacement schedule into the monthly financial statements. GOAL THREE Participate in SNRC design to identify future impacts to the fleet OBJECTIVES 1. Evaluate the feasibility of on-site fuel storage. 2. Assess the feasibility of introducing alternate fuel vehicles into the fleet where appropriate. Goals and Objectives Fleet Maintenance is responsible for preventative maintenance and repairs of the District’s vehicles and heavy equipment. Staff is responsible for ensuring air quality regulations, vehicle registration and transportation requirements. FISCAL YEAR BUDGET 2018-2019 189 190 EAST VALLEY WATER DISTRICT FY 2017-18 ACCOMPLISHMENTS Goal 1 – Ensure District Vehicles, Equipment, and Staff are Ready for Emergency Response -Complete all 30, 60, and 90-day truck inspections and preventative maintenance requirements. -Purchased one new generator for emergency preparedness and applied for proper California Air Resources Board (CARB) permits. -Purchased an emergency trailer mounted sewer by-pass pump and hose. Goal 2 – Develop and Implement Cost Recovery Fees for Vehicles per Department for Replacement Purposes -Developed a five-year vehicle and equipment replacement plan -Purchased four new vehicles -Surplus of seven vehicles and three pieces of equipment Goal 3 – Utilize Most Cost-Effective Maintenance Methods to Reduce Costs -Hired contractor to provide preventative maintenance on vehicles SIGNIFICANT CHANGES • 50% decrease in Materials and Supplies in anticipation of contractor performing Preventative Maintenance. • 80% increase in Contract Services for a Preventative Maintenance Contractor. LEVELS OF SERVICE The Fleet Program has three KPI metrics that are associat- ed with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services. (IV-A) • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Fleet Maintenance Program Program Budget Allocation $459,000 FISCAL YEAR BUDGET 2018-2019 191 The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY 2015-16 FY 2016-17 FY 2017-18 IV-A Ensure vehicles and equipment are evaluated and replaced on schedule 80% of Net Asset Value N/A N/A 100% IV-C Percent of vehicles pass annual D.O.T. inspection 100%98%100%100% IV-A Number of vehicle/equipment units replaced 4 4 4 4 PROGRAM BUDGET DETAIL FY 2016-17 Actuals FY 2017-18 Budget 2017-18 Projected 2018-19 Budgeted Amount Changed % Change PERSONNEL EXPENSES 5101 Regular Labor $ 169,353 $ 164,000 $ 164,000 $ 81,000 $ (83,000)-51% 5103 Overtime 2,656 3,000 3,000 3,000 - 0% 5200 Benefits 54,804 79,000 95,000 40,000 (39,000)-49% OPERATING EXPENSES 6201 Materials & Supplies 64,361 60,000 60,000 30,000 (30,000)-50% 6202 Tools 17,749 2,000 2,000 2,000 - 0% 6203 Office Supplies 330 1,000 1,000 1,000 - 0% 6301 Contract Services 192,632 75,000 107,000 170,000 95,000 127% 6402 Telephone 1,001 1,000 1,000 1,000 - 0% 6404 Fuel 106,478 125,000 125,000 125,000 - 0% 6501 Membership & Dues 1,728 4,000 4,000 4,000 - 0% 6502 Professional Development - 2,000 2,000 2,000 - 0% FLEET MAINTENANCE TOTAL $ 611,092 $ 516,000 $ 564,000 $ 459,000 $ (57,000)-11% 192 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY CA P I T A L B U D G E T RED KANGAROO PAW Anigozanthos Flavidus Originating from Western Australia, the kangaroo paw gets its name from the resemblance of its tubular flowers coated with dense hairs that open into paw-like form. Capital Budget FISCAL YEAR BUDGET 2018-2019 195 Capital Expenditures East Valley Water District defines capital expenditures as 1) routine purchases and replacement of assets with a cost exceeding $5,000 and an expected life of more than two years, or 2) non-routine construction project expenditures that will result in capitalization of an asset costing more than $25,000. The District’s 2018-19 Capital Budget contains $20,616,000 in total capital expenditures. Of this amount, $19,510,000 are current year (Year 1) costs pertaining to projects shown in the District’s Capital Improvement Program, presented in greater detail in the remainder of this section. The remaining proposed capital expendi- tures of $1,106,000 are routine asset purchases, referred to as Capital Outlay, which appear in each year’s budget as requests to replace vehicles, computer and office equipment, and to conduct infrastructure planning and rate studies. A summary of the proposed FY 2018-19 Capital Budget is shown on the following page. An in-depth District-wide overview of the FY 2017-18 budget. An in-depth District-wide overview of the FY 2017-18 budget. CAPITAL BUDGET Capital Investments in assets and projects based on the needs of the District CAPITAL EXPENDITURES SUMMARY Capital Improvement Program Capital Outlay (Routine) AMI Meter Replacement Program $ 1,000,000 Vehicles $ 150,000 New Storage Reservoir 500,000 Computer / Phone System Upgrades 133,000 New Transmission Main 1,100,000 Planning Studies 270,000 Plant 134 Site Improvements 150,000 Acquisition of Water Company Shares 250,000 Plant 134 Process Improvements 150,000 Office Furniture & Equipment 20,000 196 EAST VALLEY WATER DISTRICT IMPACT OF CAPITAL EXPENDITURE INVESTMENTS ON OPERATING BUDGETS The Capital Expenditures described in this section will have varying impacts on future operating expenses, both in increased costs and cost savings. The proposed transmission main allows the District to transport water farther, at higher elevations, before distribution to District customers resulting in energy savings. New water storage reservoirs also result in energy cost savings as they give the District the operational flexibility to pump water during off- peak hours and take advantage of lower rates. The Water Recycling Facility will result in a major shift of costs, from contracted treatment services, to costs associated with owning and operating a District facility such as labor, power, materials, and debt service. The following schedule provides an estimate of the effect of capital expenditures on future operations CAPITAL IMPACT Annual Impact on Operations Nature of Impact AMI Replacement Program $ 50,000 Annual Maintenance Costs for AMI Software and Hardware AMI Replacement Program 5,400 Increased Annual Telecommunication Costs New Storage Reservoir (10,000) Decreased Power Costs resulting from greater utilization of off-peak energy rates New Transmission Main (75,000)Decreased Power Costs Plant 134 Treatment Modifications 30,000 Increased Power Costs Plant 134 Treatment Modifications 50,000 Increased Filter Media Cost Wastewater Facility Rehabilitation - General Facilities Rehabilitation/Relocation - SNRC Water Recycling Plant - SNRC Water Recycling Plant (8,500,000) Decrease Contracted Treatment SNRC Water Recycling Plant 5,181,000 Increase in Debt Service SNRC Water Recycling Plant 3,300,000 Increase Labor, Power, Materials TOTAL $ (31,400) Capital Improvement Program Capital Outlay (Routine) Plant 134 Membrane Replacement 405,000 Water Tank Mixers 161,000 Plant 101 Hydro Tank Rehabilitation 350,000 Upgrade Server Room Fire Suppression 40,000 Water Main Replacements 200,000 Upgrade HVAC at Various Plants 40,000 Wastewater Main Rehabilitation 430,000 Sewer Lateral Snake / Locater 12,000 General Facilities Rehab / Relocation 225,000 Drone 30,000 SNRC Water Recycling Plant 15,000,000 TOTAL CIP EXPENDITURES $ 19,510,000 TOTAL CAPITAL OUTLAY $ 1,106,000 FISCAL YEAR BUDGET 2018-2019 197 CAPITAL OUTLAY The District defines capital outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that are expected to last more the two years and have an individual cost of $5,000 or more. This threshold is applied at the individual asset level. Each year as part of the budget process the District’s Program Managers and Supervisors compile and submit a list of capital outlay request for consideration. Then staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available. Items that benefit both the water and wastewater systems are allocated accordingly. FY 2018-19 CAPITAL OUTLAY Water Wastewater Total FUNDED BY OPERATING REVENUE North Fork Water Co. Shares $ 250,000 $ - $ 250,000 Fire Proof Filing Cabinets 7,000 3,000 10,000 Water / Wastewater Rate Studies 60,000 60,000 120,000 Phone System Upgrade 49,000 21,000 70,000 Workstations' Replacement 17,000 8,000 25,000 Wi-Fi Changeout 7,000 3,000 10,000 Virtualization - Back-Up Software/CCTV Server 14,000 14,000 28,000 Fire Suppression - Data Center 28,000 12,000 40,000 Drone 21,000 9,000 30,000 Flatfile Storage 7,000 3,000 10,000 SCADA Master Plan 120,000 30,000 150,000 Plant 24 Chlorine Analyzers 6,000 - 6,000 Plant 134 Chlorine Analyzers 25,000 - 25,000 Reservoirs 99 and 101 Tank Mixers 130,000 - 130,000 Sewer Lateral Snake and Locater - 12,000 12,000 HVAC Upgrades at Plants 108, 129, 24, 98 40,000 40,000 4 Service Trucks 150,000 - 150,000 TOTAL CAPITAL OUTLAY $ 931,000 $ 175,000 $ 1,106,000 CAPITAL IMPROVEMENT PROGRAM The District’s Capital Improvement Program (CIP) is a 5-year planning schedule with the first year (Year 1) adopted as part of the Capital Budget for the upcoming fiscal year. A project included in the District’s CIP is an individually significant construction project with a cost of more than $25,000, and either creates a new capital asset, improves an existing asset (increases its service capacity, etc.), or significantly extends an asset’s expected useful life. The Engineering Department is responsible for maintaining the District’s Capital Improvement Program and consults various sources for project planning. The primary sources for these planning efforts are the District’s Water Master Plan and Wastewater Collection System Master Plan, both updated in 2014. The Master Plans 198 EAST VALLEY WATER DISTRICT identify the infrastructure improvements needed to serve a growing population. In addition, each project being considered must meet one or more of the following criteria: • Preservation of public health and water quality. • Improvements required as a result of local, state or federal legislation/mandates. • Reduction of current maintenance expenditures and avoidance of costly future rehabilitation. • Preservation of existing facilities/infrastructure. • Positive impacts on customers. • External funding (grant/debt proceeds) has been secured for specific project. For FY 2018-19, the District has proposed the use of operating revenue, reserves, development fees, and a loan from the California Department of Water Resources to fund current year phases of Capital Improvement Program projects for $19,510,000 – total project costs for the projects in process are approximately $146 million over the next five years. Projects funded for the current year include: • Automated Metering Infrastructure – This project involves several phases to replace all District water meters with automated metering technology, and will help the District realize water and energy efficiencies, and will empower customers to monitor water usage, and potential leaks, in near ‘real time’. Phases 1 and 2 were partially funded by a $2 million grant and installed 8,428 AMI meters. Phase 3 scheduled for FY 2018-19 will install an additional 3,000 AMI meters at an approximate cost of $1 million. • Canal Zone Storage Reservoir – This facility will enhance water delivery to one of the District’s highest elevation pressure zones. Planned expenditures for FY 2018-19 are $500,000 to be funded by capacity fees. • Upper Zone Transmission Main – This new main will provide system flexibility for delivery of treated water to lower pressure zones in the District. Planned expenditures for FY 2018-19 are $1,100,000 to be funded by the water operating revenue. • Plant 134 Improvements and Membrane Replacement – Three separate projects will be used to 1) enhance security and communications, 2) assess treatment options for source water quality issues and enhance sludge removal processes, and 3) continue the phased replacement of treatment modules at the District’s surface water treatment plant. Current year budgeted costs are $705,000 to be paid out of water fund operating revenue and capital replacement reserves. • Hydro Tank Rehabilitation – Involves replacement of a small tank that is the sole source of water to serve 35 homes. Current year costs are $350,000 to be paid out of water operating revenue. • Water Main Replacements – The District has scheduled the replacement of approximately 8,400 linear feet (LF) of interconnected mains in an area where leaks are frequently reported. Planned expenditures during FY 2018-19 on these mains are $200,000, to be funded by water operating revenue. • Wastewater Main Replacements – The District has scheduled the rehabilitation of two sections of sewer main pipeline, rated as high priority due to the number of structural defects noted during video logging of these pipelines. Planned expenditures during FY 2018-19 on these mains are $430,000, to be funded by wastewater operating revenue. • General Facilities Rehabilitation/Relocation – These line items involve various projects such as security upgrades, and improving the aesthetics of buildings at plant sites; it also provides a budget for relocating facilities in conjunction with City street or storm drain improvement projects. Planned expenditures for FY 2018-19 are $225,000 to be funded by water operating revenue. • Sterling Natural Resource Center Water Recycling Facility – This project will capture and treat District wastewater flows at an elevation high enough to recharge the Bunker Hill Groundwater basin, rather than releasing treated water into the Santa Ana River for use downstream. Planned expenditures in FY 2018- 19 are $15,000,000, funded by State Revolving Fund low interest loans. The following pages include the District current Capital Improvement Program, a summary of project funding, and detailed descriptions of each project. FISCAL YEAR BUDGET 2018-2019 199 CIP FIVE YEAR PROGRAM SCHEDULE (FY 2019-23) YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 FUNDING TOTAL GENERAL Habitat Conservation Plan $ - $ 310,000 $ 384,000 $ 383,000 $ - $ 1,077,000 AMI Meter Replacement Program 1,000,000 - 550,000 - 1,000,000 2,550,000 GENERAL SUBTOTAL 1,000,000 310,000 934,000 383,000 1,000,000 3,627,000 WATER Canal Zone Storage Reservoir 500,000 - 500,000 2,000,000 - 3,000,000 Mountain Zone Storage Reservoir - - - - 1,000,000 1,000,000 Transmission Main - Plant 134 to Upper Zone 1,100,000 835,000 - - - 1,935,000 Transmission Main - Plant 134 to Canal Zone - - - - 500,000 500,000 Plant 134 - Process Improvements 150,000 1,000,000 - - - 1,150,000 Plant 134 - Site Improvements 150,000 - 1,000,000 - - 1,150,000 Plant 134 - Membrane Replacement 405,000 405,000 405,000 - 405,000 1,620,000 Plant 101 - Hydro Tank Replacement 350,000 - - - - 350,000 Plant 59 - Rehabilitation - - 250,000 - - 250,000 Plant 140 - Rehabilitation - - 250,000 - - 250,000 Plant 9 - Forebay Repair - - - 350,000 - 350,000 Water Mains - Dwight & Glasgow 200,000 1,000,000 - - - 1,200,000 Water Mains - Sterling & Highland - - - - 430,000 430,000 Water Mains - Fisher & Stratford - - - - 920,000 920,000 Facility Relocations 100,000 100,000 100,000 100,000 100,000 500,000 Facility Rehabilitations 75,000 75,000 75,000 75,000 75,000 375,000 Well & Booster Improvements / Rehabilitations 50,000 50,000 50,000 50,000 50,000 250,000 WATER SUBTOTAL $ 3,080,000 $ 3,465,000 $ 2,630,000 $ 2,575,000 $ 3,480,000 $ 15,230,000 200 EAST VALLEY WATER DISTRICT YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL WASTEWATER Wastewater Main Rehabilitation - Modesto Drive $ 250,000 $ - $ - $ - $ - $ 250,000 Wastewater Main Rehabilitation - 35th Street 180,000 - - - - 180,000 Wastewater Main Replacement - Rogers Lane - 110,000 - - - 110,000 Wastewater Main Projects - 250,000 350,000 350,000 350,000 1,300,000 Sterling Natural Resource Center (SNRC) 15,000,000 46,900,000 55,825,000 - - 117,725,000 5th Street Trunk Wastewater (SNRC) - 1,500,000 - - - 1,500,000 Del Rosa Drive Trunk Wastewater (SNRC) - 6,100,000 - - - 6,100,000 WASTEWATER SUBTOTAL 15,430,000 54,860,000 56,175,000 350,000 350,000 127,165,000 TOTAL $ 19,510,000 $ 58,635,000 $ 59,739,000 $ 3,308,000 $ 4,830,000 $ 146,022,000 FISCAL YEAR BUDGET 2018-2019 201 CIP FIVE YEAR FUNDING SCHEDULE (FY 2019-23) YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL Water Operating Revenue $ 3,175,000 $ 3,370,000 $ 3,159,000 $ 2,958,000 $ 4,075,000 $ 16,737,000 Water Replacement Reserves 405,000 405,000 405,000 - 405,000 1,620,000 Wastewater Operating Revenue 430,000 360,000 350,000 350,000 350,000 1,840,000 Wastewater Replacement Reserves - - - - - - Wastewater Reserve Borrowing - - - - - - Grants / Loans 15,000,000 54,500,000 55,825,000 - - 125,325,000 Revenue Bonds - - - - - - Developer Fees 500,000 - - - - 500,000 TOTAL $ 19,510,000 $ 58,635,000 $ 59,739,000 $ 3,308,000 $ 4,830,000 $ 146,022,000 A $126 million funding package from the California Department of Water Resources State Revolving Fund will be used to build the Sterling Natural Resource Center. 202 EAST VALLEY WATER DISTRICT CIP FY 2018-19 PROPOSED FUNDING Water Operating Revenue Wastewater Operating Revenue Replacement Reserves Grants/ Loans Other Fund Developer Fees Project Total WATER AMI Meter Replacement Program $ 1,000,000 $ - $ - $ - $ - $ 1,000,000 Canal Zone Storage Reservoir - - - - 500,000 500,000 Transmission Main - Plant 134 to Upper Zone 1,100,000 - - - - 1,100,000 Plant 134 - Process Improvements 150,000 - - - - 150,000 Plant 134 - Site Improvements 150,000 - - - - 150,000 Plant 134 Membrane Replacement - - 405,000 - - 405,000 Plant 101 - Hydro Tank Replacement 350,000 - - - - 350,000 Water Mains - Dwight & Glasgow 200,000 - - - - 200,000 Facilities Relocations 100,000 - - - - 100,000 Facilities Rehabilitation 75,000 - - - - 75,000 Well & Booster Improvements / Rehabilitations 50,000 - - - - 50,000 Water Subtotal 3,175,000 - 405,000 - 500,000 4,080,000 WASTEWATER Wastewater Main Rehabilitation - Modesto Drive $ - $ 250,000 $ - $ - $ - $ 250,000 Wastewater Main Rehabilitation - 35th Street - 180,000 - -- 180,000 Sterling Natural Resource Center (SNRC) - - - 15,000,000 - 15,000,000 Wastewater Subtotal - 430,000 - 15,000,000 - 15,430,000 TOTAL $ 3,175,000 $ 430,000 $ 405,000 $ 15,000,000 $ 500,000 $ 19,510,000 CI P PR O J E C T S RED HOT POKER Kniphofia Uvaria A native from South Africa, the Kniphofia Uvaria buds and emerging flowers are red but mature to yellow, giving each spike a two-toned appearance. Capital Improvement Projects FISCAL YEAR BUDGET 2018-2019 205 Project Type Replacement Water Distribution Location All service connections throughout the District. Project Manager Engineering/Information Technology Total Project Cost $5,050,000 Prior Years Budget $2,000,000 in 2016-17; $0 initially for 2017-18 (mid-year adjustment to $500,000) Start Date July 2016 Estimated Completion June 2022 Capital Requests Previously Programmed Project Project Description This project consists of updating manual read meters throughout the District with Advanced Metering Infrastructure (AMI) hardware, software, and meters. Phases 1 (FY 2016-17) and 2 (FY 2017-18) of this project replaced 8,448 meters, and Phase 3, proposed for FY 2018-19, will upgrade an additional 3,000 meters. Implementation of the AMI infrastructure will provide customers and District staff the ability to monitor water usage, and to receive ‘leak alerts’ when customer usage is outside of a normal range. The remaining 11,000 accounts will be upgraded with AMI in three phases over the next four to six years. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance Annual maintenance costs for AMI software and hardware will be $50,000 Utilities Minimal increase in annual telecommunication costs of $5,400 AMI Meter Replacement Program 206 EAST VALLEY WATER DISTRICT AMI Meter Replacement Program PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 975,000 - 525,000 - 975,000 2,475,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 25,000 - 25,000 - 25,000 75,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 1,000,000 $ - $ 550,000 $ - $ 1,000,000 $ 2,550,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 1,000,000 $ - $ 550,000 $ - $ 1,000,000 $ 2,550,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 1,000,000 $ - $ 550,000 $ - $ 1,000,000 $ 2,550,000 FISCAL YEAR BUDGET 2018-2019 207 Project Type Water Location A siting study still needs to be completed to determine the best location for this reservoir Project Manager Engineering Total Project Cost $3,000,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2022 Capital Requests New Project Project Description The purpose of this project is to plan, design, and build additional water storage in the District’s Canal Zone, based on recommendations from the master plan update for the water system that is expected to be complete around August 2018 OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance There will be incremental maintenance costs for any additional storage tanks to address corrosion control and site maintenance. Utilities Decreased power costs of $10,000 resulting from greater utilization of off-peak energy rates Canal Zone Storage Reservoir 208 EAST VALLEY WATER DISTRICT Canal Zone Storage Reservoir PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 50,000 $ - $ - $ - $ - $ 50,000 Land and Land Preparation - - - - - - Construction (Contract) 380,000 - 430,000 1,770,000 - 2,580,000 Project Mgmt/Inspection 50,000 - 50,000 200,000 - 300,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 20,000 - 20,000 30,000 - 70,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 500,000 $ - $ 500,000 $ 2,000,000 $ - $ 3,000,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ 500,000 $ 2,000,000 $ - $ 2,500,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees 500,000 - - - - 500,000 Other - - - - - - ANNUAL TOTAL $ 500,000 $ - $ 500,000 $ 2,000,000 $ - $ 3,000,000 FISCAL YEAR BUDGET 2018-2019 209 Project Type Water Location Highland Avenue between Plant 134 and Victoria Avenue Project Manager Engineering Total Project Cost $2,085,000 Prior Years Budget $150,000 Start Date April 2017 Estimated Completion June 2019 Capital Requests Previously Programmed Project Project Description East Valley Water District’s service area is bifurcated by the 210 and 330 Freeways, allowing a limited number of crossing points to move water from one side of the freeway to the other. This limitation makes delivery of water from the District’s surface water treatment plant (Plant 134) to the opposite (west) side of the freeway very inefficient as water must be dropped to lower zones to a crossing point, and then pumped back to higher elevations on the west side of the freeway. Without this limitation, delivery of water produced by Plant 134 would require little pumping and be very cost effective. This project will create a new freeway crossing point at high elevation, greatly enhancing system efficiency and flexibility. The project involves installation of a 16” transmission main under the 330 freeway and in Highland Avenue. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities This project would save approximately $75,000 annually on booster and well pumping on the District’s west side. Transmission Main - Plant 134 to Upper Zone 210 EAST VALLEY WATER DISTRICT Transmission Main, Plant 134 to Upper Zone PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 940,000 675,000 - - - 1,615,000 Project Mgmt/Inspection 120,000 120,000 - - - 240,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 40,000 40,000 - - - 80,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 1,100,000 $ 835,000 $ - $ - $ - $ 1,935,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 1,100,000 $ 835,000 $ - $ - $ - $ 1,935,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 1,100,000 $ 835,000 $ - $ - $ - $ 1,935,000 FISCAL YEAR BUDGET 2018-2019 211 Project Type Water Location Treatment Plant 134 4588 Highland Avenue Highland, CA 92346 Project Manager Operations Total Project Cost $1,150,000 Prior Years Budget N/A Start Date August 2018 Estimated Completion TBD Capital Requests New Project Project Description Plant 134 is the District’s only surface water treatment plant and is the primary source for delivering water to three of the District’s higher elevation pressure zones. The organic content of water treated at Plant 134 (i.e., water from the Santa Ana River and State Water Project) varies due to seasonal and other effects. When this high organic content in Plant 134 source water interacts with chlorine added during treatment processes, the by-product Trihalomethane (THM) can reach unacceptable levels leading to water quality concerns. This project includes research of various treatment processes, including Granular Activated Carbon (GAC) filter, and eventually construction, to remove organics and mitigate the possibility of high THM levels. During the same period, the District will explore methods for disposal of higher levels of sludge removed from surface water. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance The installation of GAC filters would increase maintenance costs by approximately $50,000 annually for replacement of filter media. Utilities An additional treatment process will increase power costs by approximately $30,000 annually Plant 134 Process Improvements (THMs & Sludge Management) 212 EAST VALLEY WATER DISTRICT Plant 134 Process Improvements PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 150,000 $ - $ - $ - $ - $ 150,000 Land and Land Preparation - - - - - - Construction (Contract) - 900,000 - - - 900,000 Project Mgmt/Inspection - 100,000 - - - 100,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 150,000 $ 1,000,000 $ - $ - $ - $ 1,150,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 150,000 $ 1,000,000 $ - $ - $ - $ 1,150,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 150,000 $ 1,000,000 $ - $ - $ - $ 1,150,000 FISCAL YEAR BUDGET 2018-2019 213 Project Type Water Location Treatment Plant 134 4588 Highland Avenue Highland, CA 92346 Project Manager Operations Total Project Cost $1,150,000 Prior Years Budget N/A Start Date August 2018 Estimated Completion June 2020 Capital Requests New Project Project Description Plant 134 is the District’s only surface water treatment plant and is the primary source for delivering water to three of the District’s higher elevation pressure zones. The Plant is located in the foothills above Highland, which has made it susceptible to intrusion from nearby homeless encampments, and to dropped communications that are trying to utilize its wireless network. In addition, the Laboratory and bathroom fixtures at the plant are in need of rehabilitation. This project includes installation of improved physical barriers around the perimeter of the plant to prevent intrusion, the installation of conduit and cabling from Highland Avenue, along the Plant access road up to the Plant, to allow hard wiring for primary security and communications systems, and a remodel of the Lab and bathroom facilities. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance The installation of improved security systems at the Plant will reduce repair costs and staff overtime, improved communication systems will reduce staff time for troubleshooting communications failures. Utilities N/A Plant 134 Site Improvements (Security, Communication, Lab Upgrades, etc) 214 EAST VALLEY WATER DISTRICT Plant 134 Site Improvements PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 150,000 $ - $ - $ - $ - $ 150,000 Land and Land Preparation - - - - - - Construction (Contract) - - 900,000 - - 900,000 Project Mgmt/Inspection - - 100,000 - - 100,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 150,000 $ -$ 1,000,000 $ - $ - $ 1,150,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 150,000 $ - $ - $ - $ - $ 150,000 Reserves - - 1,000,000 - - 1,000,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 150,000 -$ 1,000,000 $ - $ - $ 1,150,000 FISCAL YEAR BUDGET 2018-2019 215 Project Type Water Location Treatment Plant 134 4588 Highland Ave. Highland, CA 92346 Project Manager Operations Total Project Cost $1,620,000 Prior Years Budget N/A Start Date January 2018 Estimated Completion February 2022 Capital Requests On-going Project Project Description Plant 134 has five treatment trains that consist of 180 membrane filters per train. The manufacturer of the filters recommends replacing the filter every 5 to 7 years. In FY 2017-18 staff replaced 1 full train with new filters which drastically reduced staff time in making membrane repairs. Staff plans to replace another full train of filters in 2018-19, and continue to replace one train per year until all of the filters have been replaced. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Plant 134 Treatment Membrane Replacement 216 EAST VALLEY WATER DISTRICT Plant 134 Treatment Membrane Replacement PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) - - - - - - Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 405,000 405,000 405,000 - 405,000 1,620,000 EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 405,000 $ 405,000 $ 405,000 $ - $ 405,000 $ 1,620,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Reserves 405,000 405,000 405,000 - 405,000 1,620,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 405,000 $ 405,000 $ 405,000 $ - $ 405,000 $ 1,620,000 FISCAL YEAR BUDGET 2018-2019 217 Project Type Water Location 3045 N. Mountain Top Drive Highland, CA 92346 Project Manager Engineering Total Project Cost $350,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 20 Capital Requests New Project Project Description The Hydro-pneumatic tank at Plant 101 boosts water to 35 homes that are situated at elevations above the plant site, and therefore cannot be gravity fed by the plant’s 1.4-million-gallon reservoir; the hydro tank is the only means of serving these customers. A recent inspection of Plant 101 revealed that the hydro tank and booster pumps need rehabilitation or replacement. This project includes an assessment of the alternatives – rehabilitation or replacement – taking into consideration, not just project costs, but length of time the homes dependent on the hydro tank will be without water. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Plant 101 Hydro Tank Rehabilitation 218 EAST VALLEY WATER DISTRICT Plant 101 Hydro Tank Rehabilitation PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 290,000 - - - - 290,000 Project Mgmt/Inspection 35,000 - - - - 35,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 25,000 - - - - 25,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 350,000 $ - $ - $ - $ - $ 350,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 350,000 $ - $ - $ - $ - $ 350,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 350,000 $ - $ - $ - $ - $ 350,000 FISCAL YEAR BUDGET 2018-2019 219 Project Type Replacement – Water Distribution Main Location Dwight Way and Glasgow Avenue between Pacific and Baseline Project Manager Engineering Total Project Cost $1,200,000 Prior Years Budget N/A Start Date September 2018 Estimated Completion May 2020 Capital Requests New Project Project Description Replace 4" and 6" main with new 8" main of approximately 8,400 linear feet of pipeline in Glasgow Avenue and Dwight Way from Baseline Sreet to Pacific Avenue and in Elmo Drive, Independent Place and Bessant Street from Dwight Way to Glasgow Avenue and in Anson Street, Fisher Street, and Bessant Street from Glasgow Avenue to Del Rosa Drive. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance The annual maintenance cost for the new water main will be very low for the first several years. The maintenance cost to repair leaks on the existing water main is the key driver for this project. Utilities N/A Water Main Replacement - Dwight & Glasgow BESSANT ST. FISHER ST. ANSON ST. DW I G H T W Y . GL A S S G O W A V E DE L R O S A A V E INDEPENDENT PL. ELMO DR. 220 EAST VALLEY WATER DISTRICT Water Main Replacement - Dwight & Glasgow PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 180,000 $ - $ - $ - $ - $ 180,000 Land and Land Preparation - - - - - - Construction (Contract) - 900,000 - - - 900,000 Project Mgmt/Inspection - 100,000 - - - 100,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 20,000 - - - - 20,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 200,000 $ 1,000,000 $ - $ - $ - $1,200,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 200,000 $ 1,000,000 $ - $ - $ - $ 1,200,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 200,000 $ 1,000,000 $ - $ - $ - $ 1,200,000 FISCAL YEAR BUDGET 2018-2019 221 Project Type Replacement Water Distribution System Location District Wide Project Manager Engineering Total Project Cost $100,000 for FY 2018-19. Budgeted annually. Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests Perennial Budget Request Project Description The District’s service area covers all of the City of Highland, parts of the City of San Bernardino and parts of San Bernardino County. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obliged to relocate its facilities. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Facility Relocations 222 EAST VALLEY WATER DISTRICT Facility Relocations PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Land and Land Preparation - - - - - - Construction (Contract) 85,000 85,000 85,000 85,000 85,000 425,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 FISCAL YEAR BUDGET 2018-2019 223 Project Type Water Location Plant 134 - 4588 Highland Avenue, San Bernardino CA Plant 129 - 7800 Calle Del Rio Highland CA Project Manager Operations Total Project Cost $75,000 for FY 2018-19. Budgeted Annually Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests Perrenial Budget Request Project Description This project involves improvements to multiple facilities, including: • Paint exterior doors and trim at Plant 134 • Slurry seal asphalt inside of plant 129, replace booster building roof, and repair perimeter fencing OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Facility Rehabilitations 224 EAST VALLEY WATER DISTRICT Facility Rehabilitations PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ - $ -$ -$ -$ -$ - Land and Land Preparation - - - - - - Construction (Contract) 75,000 75,000 75,000 75,000 75,000 375,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 375,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 375,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 375,000 FISCAL YEAR BUDGET 2018-2019 225 Project Type Water Location TBD Project Manager Operations Total Project Cost $250,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests Perrenial Budget Request Project Description The District has approximately 65 booster pumps, and 16 Wells in the water distribution system. In order to ensure that these facili- ties operate properly and provide reliable service this budget item will provide funding to rehabilitate existing booster pumps and wells prior to failure or major reductions in performance. This pro-active approach will reduce the cost of repairs done in an emergency or reactive mode. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance Maintenance costs will be reduced by allowing work to be scheduled in proactive mode rather than emergency reactive modes, which can incur overtime charges in addition to the cost of the repairs. Utilities Improving pump and well performance through scheduled repairs and rehabilitation will result in improved efficiency and lower energy costs. Well & Booster Improvements/Rehabilitation 226 EAST VALLEY WATER DISTRICT Well & Booster Improvements/Rehabilitations PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 25,000 Land and Land Preparation - - - - - - Construction (Contract) 40,000 40,000 40,000 40,000 40,000 200,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 FISCAL YEAR BUDGET 2018-2019 227 Project Type Wastewater Location Modesto Drive - 35th Street to 36th Street Project Manager Engineering Total Project Cost $250,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests New Project Project Description This section of 6-inch diameter sewer main is under sized with an 8-inch main upstream. A 6-inch diameter main provides more potential for main blockage to occur. Current standards require minimum 8-inch diameter for mains. This section of pipeline has 16 direct lateral connections and serves approximately 45 SFR units upstream. Requires reconstruction of approximately 760 LF of pipeline and reconnection of 16 laterals. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Wastewater Main Rehabilitation - Modesto Drive MO D E S T O D R . 35TH ST. 36TH ST. 228 EAST VALLEY WATER DISTRICT Wastewater Main Rehabilitation - Modesto Drive PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 25,000 $ - $ - $ - $ - $ 25,000 Land and Land Preparation - - - - - - Construction (Contract) 200,000 - - - - 200,000 Project Mgmt/Inspection 25,000 - - - - 25,000 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 250,000 $ - $ - $ - $ - $ 250,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 250,000 $ - $ - $ - $ - $ 250,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 250,000 $ - $ - $ - $ - $ 250,000 FISCAL YEAR BUDGET 2018-2019 229 Project Type Wastewater Location 35th Street – Garden Drive to Conejo Drive. Project Manager Engineering Total Project Cost $180,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests New Project Project Description This section of 6-inch diameter sewer main is under sized with an 8-inch main upstream. A 6-inch diameter main provides more potential for main blockage to occur. Current standards require minimum 8-inch diameter for mains. This section of pipeline has 7 direct lateral connections and serves approximately 50 SFR units upstream. Requires reconstruction of approximately 525 LF of pipeline and reconnection of 7 laterals. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Wastewater Main Rehabilitation - 35th Street 35TH ST. MO D E S T O D R . GA R D E N D R . CO N E J O D R . 230 EAST VALLEY WATER DISTRICT Wastewater Main Rehabilitation - 35th Street PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 18,000 $ - $ - $ - $ - $ 18,000 Land and Land Preparation - - - - - - Construction (Contract) 162,000 - - - - 162,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 180,000 $ - $ - $ - $ - $ 180,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ 180,000 $ - $ - $ - $ - $ 180,000 Reserves - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 180,000 $ - $ - $ - $ - $ 180,000 FISCAL YEAR BUDGET 2018-2019 231 Project Type New Wastewater Treatment Location Northwest Corner of 5th Street and Del Rosa Drive Project Manager Engineering Total Project Cost $117,725,000 Prior Years Budget N/A Start Date January 2014 Estimated Completion March 2022 Capital Requests Previously Programmed Project Project Description In response to the drought and SBX7-7 which mandates that the District must cut 20% of its use by the year 2020, the District is planning and constructing a water recycling facility. The facility will allow the District to treat wastewater to a point that it can be recharged back into the groundwater basin and reused for domestic purpose. Initially the facility will treat approximately 6 million gallons per day and will be expandable to be able to treat ultimate build out of approximately 10 million gallons per day. OPERATING BUDGET IMPACT Additional Staff Salaries $1,325,000 Debt Service $5,181,000 annually on a low interest, State Revolving Fund loan Maintenance $1,250,000 (estimated) for contract services and supplies. Contracted treatment paid to a third party of $8,500,000 would be eliminated Utilities $725,000 (estimated) for additional electrical energy, natural gas, water, wastewater, and telephone/data communications will be required. Sterling Natural Resource Center (SNRC) 232 EAST VALLEY WATER DISTRICT Sterling Natural Resource Center PROJECT COST YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL ESTIMATED COST ITEMIZATION Planning and Design $ 1,500,000 $ - $ - $ - $ - $ 1,500,000 Land and Land Preparation - - - - - Construction (Contract) 12,000,000 42,210,000 50,242,500 - - 104,452,500 Project Mgmt/Inspection 1,500,000 4,690,000 5,582,500 - - 11,772,500 Equipment/Furnishings - - - - - - Materials - - - - - - EVWD Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 15,000,000 $ 46,900,000 $ 55,825,000 $ - $ - $ 117,725,000 PROJECT FUNDING YEAR 1 FY 2018-19 YEAR 2 FY 2019-20 YEAR 3 FY 2020-21 YEAR 4 FY 2021-22 YEAR 5 FY 2022-23 PROJECT TOTAL FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Reserves - - - - - - Grants/Loans 15,000,000 46,900,000 55,825,000 - - 117,725,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 15,000,000 $ 46,900,000 $ 55,825,000 $ - $ - $ 117,725,000 AC C O M P L I S H M E N T S YELLOW AND RED LANTANA Lantana As the Lantana’s flowers mature they change color, creating inflorescences that are two or three toned. A native to tropical regions of the Americas and Africa, it is are tolerant of many soil conditions and thrives in warm temperatures. Accomplishments FISCAL YEAR BUDGET 2018-2019 235 Accomplishments Infrastructure improvements represent a significant investment in maintaining a reliable system for the community served by East Valley Water District. Several capital improvement projects were completed in FY 2017-18 that focused on system improvements for both water and wastewater systems. Each project was completed under budget and include: Project Details Completion Date Pumalo Casa Main Extension May 2018Project Budget $135,000 Actual Cost 138,048 City Creek Manhole Reinforcement April 2018Project Budget $255,000 Actual Cost 155,177 Fourth Street Wastewater Main Rehabilitation April 2018Project Budget $100,000 Actual Cost 66,780 Plant 134 Hydro-Electric Generation Facility May 2018Project Budget $4,000,000 Actual Cost 4,355,775 FISCAL YEAR BUDGET 2018-2019 235 236 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY GL O S S A R Y WHITE ICEBERG ROSE Rosa ‘Iceberg’ A hybrid between ‘Robin Hood’, Pemberton and ‘Virgo’, the Rosa ‘Iceberg’ can grow 4-6 feet tall. Its fragrant flowers are usually present throughout the year. Glossary FISCAL YEAR BUDGET 2018-2019 239   A • Acre Foot (AF): A water measurement equal to 325,851 gallons. - pg. 41 • AMI: Advanced Metering Infrastructure is the technology of collecting meter reads via a network. - pg. 121 • AMR: Automatic Meter Reading is the technology of collecting meter reads via a hand- held device within close proximity of the water meter • AQMD or SCAQMD: Air Quality Management District or South Coast Air Quality Management District is the air pollution agency responsible for regulating stationary sources of air pollution in the South Coast Air Basin, in Southern California • AWWA: American Water Works Association was established in 1881 and is the largest nonprofit, scientific, and educational association dedicated to managing and treating water. - pg. 85 C • CAFR: Comprehensive Annual Financial Report is a set of U.S. government financial statements comprising the financial report of a state, municipal, or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board. - pg. 123 • Cal Fire: California Department of Forestry and Fire and Protection. - pg. 18 • CalPERS: California Public Employees’ Retirement System is an agency in the California executive branch that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families. - pg. 29 • CIP: Capital Improvement Plan. - pg. 8 • Closed Circuit TV (CCTV): A closed circuit TV is the use of video cameras to transmit a signal to a limited set of monitors. - pg. 197 • COLA: Cost of Living Adjustment. - pg. 8 • COSA: Cost of Service Analysis. - pg. 51 • California Special Districts Association (CSDA): The California Special Districts Association is a 501c(6) not-for-profit association that promotes good governance and improved core local services through professional development, advocacy, and other services for independent special districts. - pg. 9 D • DWR: Department of Water Resources. - pg. 46 E • EDU: An equivalent dwelling unit is defined by the Borough to be the measure of volume and GLOSSARY Definitions for technical terms and acronyms found in the budget document 240 EAST VALLEY WATER DISTRICT strength of flow or expected flow of sanitary sewage equivalent to that generated by a single family residential establishment • Enterprise Fund: Revenues and expenditures of services are separated into separate funds with its own financial statements. - pg. 4 • ESRI: Environmental Systems Research Group is an international supplier of Geographic Information System (GIS) software, web GIS, and geodatabase management applications • EVWD: East Valley Water District F • Fees: Charges for service that are based upon the cost of providing the service. - pg. 25 • Fiscal Year (FY): The time frame in which the budget applies. This period is from July 1 through June 30. - pg. 5 • FOG: Fats, oils, and grease. - pg. 165 • Full-Time Equivalent (FTE): A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. It is calculated by equating 2,080 hours of work per year with the full-time equivalent of one position; thus, one position would have an FTE of 1. - pg. 19 • Fund: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. - pg. 4 • Fund Equity: The excess of an entity’s assets over its liabilities; a negative Fund Equity is sometimes called a deficit. - pg. 50 G • GAC: Granular Activated Carbon is a highly porous adsorbent material used during the water treatment process. It is used to remove tetrachloroethylene, also known as perchloroethylene (PCE). - pg. 159 • GASB: Governmental Accounting Standards Board is a private, non-governmental organization who is the source of generally accepted accounting principles (GAAP) used by State and Local governments in the U.S. - pg. 29 • GASB 68: A state or local government employer will report the Net Pension Liability associated with its defined benefit pension plan(s) that is administered through a trust or equivalent arrangement. - pg. 29 • Generally Accepted Accounting Principles (GAAP): Uniform minimum standards of, and guidelines for external financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompasses the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. The primary authoritative statements on the application of GAAP to state and local governments are Government Accounting Standards Board (GASB) pronouncements. GAAP provides a standard by which to measure financial presentations. - pg. 29 • Geographic Information System (GIS): An organized collection of computer hardware, software and geographic data designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information. - pg. 44 • GFOA: The Government Finance Officers Association represents public finance officials throughout the United States and Canada. - pg. 14 • Global Positioning System (GPS): A global positioning system provides geolocation and time information to a GPS receiver. - pg. 127 H • HCP: Habitat Conservation Plan. - pg. 9 • Hundred Cubic Feet (HCF): Water billing measurement equal to 748 gallons. - pg. 34 K • KPI: A Key Performance Indicator monitors progress towards meeting program objectives. - pg. 7 L • Linear Feet (LF): A linear foot is a 12-inch measurement of length. - pg. 198 FISCAL YEAR BUDGET 2018-2019 241 M • MG: Million Gallon. - pg. 47 • MGD: Million Gallons Per Day. - pg. 161 • MOU: Memorandum of Understanding. - pg. 40 N • NFWC: North Fork Water Company is a mutual water company that secures surface water from the Santa Ana River and other available sources for delivery to its shareholders. - pg. 41 R • Revenue: Income generated by assessments, investments, connection fees, stand-by fees, and user charges. - pg. 4 • Reserve: An account set aside to meet unexpected costs. - pg. 5 S • SAR: Santa Ana River. - pg. 1 -SBCUSD: San Bernardino City Unified School District. - pg. 17 • SCADA: Supervisory Control and Data Acquisition generally refers to an industrial computer system that monitors and controls a process. - pg. 44 • SCE: Southern California Edison. - pg. 151 • Single Family Residential (SFR): A stand-alone residential building. - pg. 227 • SNRC: The District is planning and constructing a water recycling center called the Sterling Natural Resource Center. - pg. 17 • SWRCB: State Water Resources Control Board. - pg. 40 V • Valley District: San Bernardino Valley Municipal Water District was formed in 1954 as a regional agency to plan a long-range water supply for the San Bernardino Valley. - pg. 16 W • Wastewater Collection Sytem Master Plan(WCSMP): The District's Wastewater Collection System Master Plan outlines existing deficiencies and facility requirements to meet increasing demands. It provides a general assessment to creat a comprehensive CIP for the wastewater collection system. - pg. 151 • Water System Master Plan(WSMP): The District's Water System Master Plan provides information on proposed CIP for the water system, including phasing of the cevessay projects and capital requirements taking existing deficiencies and facility requirements to meet both current and future demand in consideration. - pg. 145 242 EAST VALLEY WATER DISTRICT THIS PAGE IS LEFT BLANK INTENTIONALLY CH A R T O F AC C O U N T S SEA LAVENDER Limonium Perezii Often found in salt marshes and along coastal sand dunes, Limonium Perezii thrives in salty, windy, and sandy conditions. Its clusters of small purple flowers bloom in summer. In many areas, this plant is protected by federal, local or state laws. Chart of Accounts FISCAL YEAR BUDGET 2018-2019 245 Chart of Accounts The Chart of Accounts is a complete listing of every account used in the accounting system. Additionally, each program budget detail has allocated District resources to a specific account that will be used throughout the current fiscal year. Below is a listing of the District’s Chart of Accounts with a brief description of each account. • 5101 - Regular Labor: Regular salaries and wages for permanent full-time and part-time employees • 5102 - Temporary Labor: Costs for labor not permanently employed by the District • 5103 - Overtime: Employees that work more than their regular 40 hours per week • 5104 - Standby: Employees that are on call for emergencies during non-business hours, weekends, and holidays • 5200 - Benefits: Medical, dental, vision, retirement, and related benefits offered by the District • 6101 - Purchased Water: Cost to purchase imported water • 6102 - Groundwater Replenishment: Cost to pump groundwater from the basin • 6103 - Water Assessment: Cost of water shares directly related to North Fork • 6201 - Materials & Supplies: Items used in daily operations, repair, and maintenance • 6202 - Tools: Items used to perform repair and maintenance activities • 6203 - Office Supplies: Items such as pens, paper, and other related desk accessories • 6204 - Chemicals: Used for the treatment of water and cleaning equipment and tools • 6205 - Conservation Rebates: Costs to reimburse customers for eligible conservation efforts • 6301 - Contract Services: Services rendered by consultants and contractors; software subscriptions and licensing • 6302 - Banking Services: Services fees charged by financial institutions, merchant banks, and payment processors • 6303 - Printing & Publishing: Costs for printing and producing District publications • 6304 - Legal Services: Costs for legal advice, consultation, contract review, and litigation • 6305 - Treatment Services: Outside treatment services for wastewater • 6306 - Rents & Leases: Rental and lease costs for buildings and equipment that are not owned by the District • 6307 - Uniforms: Costs for the purchase, rental and laundering of uniforms, and other sundries for employees • 6308 - Billing Services: Costs associated with printing and mailing customer utility bills • 6309 - Shut Off Notice Services: Costs associated with the printing and delivery of 48 Hour Notices; these costs are charged back to customers through a fee • 6310 - Street Services: Costs associated with street restoration after District performs repairs and maintenance to existing infrastructure • 6311 - Landscape Services: Costs to maintain landscape, sprinklers, and weed abatement throughout the District • 6312 - Janitorial Services: Costs to clean and maintain District facilities • 6313 - Facilities Repair: Tracking of minor repairs for District facilities • 6314 – Litigation Expense: Costs associated with legal proceedings, legal action, lawsuits, legal disputes, or legal cases. • 6401 - Utilities: Cable, gas, and other utilities not including telephone and electricity • 6402 - Telephone: Land lines, cellular phones, and internet services • 6403 - Electricity: Electricity usage costs • 6404 - Fuel: Fuel costs for vehicles and generators • 6405 - Permits: Permit costs required by federal, state, and local regulatory agencies • 6406 - Postage: Costs for mailing bills, publications, and special deliveries • 6501 - Memberships & Dues: Subscriptions (not including software) and memberships for associations and special groups; award applications 246 EAST VALLEY WATER DISTRICT • 6502 - Professional Development: Seminars, conferences, and travel costs for employee development • 6503 - Education Assistance: Tuition reimbursement for employees who attend school for a degree or certificate • 6504 - Meetings: Costs such as meals, parking, and registration that are not related to professional development • 6505 - Employee Recognition: Employee recognition costs to recognize excellent performance throughout the year • 6701 - General Insurance: General liability insurance for the District’s facilities and infrastructure development • 6702 - Insurance Claims: Cost of insurance claims paid during the fiscal year • 6703 - Cash Over/Short: Accounts for customer payment processing discrepancies • 6704 - Bad Debt: Account used to write off uncollectible customer unpaid water or wastewater charges • 6705 - Retiree Benefits: Other post-employment benefits reimbursed to District retirees THIS PAGE IS LEFT BLANK INTENTIONALLY THIS PAGE IS LEFT BLANK INTENTIONALLY &Enhance Preserve THE QUALITY OF LIFE FOR OUR Community THROUGH INNOVATIVE LEADERSHIP &World Class PUBLIC SERVICE 250 EAST VALLEY WATER DISTRICT DISTRICT HEADQUARTERS 31111 Greenspot Road, Highland, CA 92346 (909) 889-9501 www.eastvalley.org Adopted June 28, 2018 DISTRICT BOARD MEETINGS Second and fourth Wednesday of each month District Headquarters Board Room, 5:30pm