Loading...
HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 02/13/2019REGULAR BOARD MEETING Closed Session Begins at 4:00 PM February 13, 2019 - 5:30 PM 31111 Greenspot Road, Highland, CA 92346 AGENDA "In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors". CALL TO ORDER ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGENDA - This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. 1.Approval of Agenda RECESS INTO CLOSED SESSION CLOSED SESSION 2.CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION 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.Approve J anuary 9, 2019 regular board meeting minutes b.Approve Directors' fees and expenses for J anuary 2019 D I SC U SSI ON AN D P O SSI B L E AC T I O N I T E MS 4.C onsider Regional Recycled Water Pipeline Design Reimbursement A greement with San Bernardino Valley Municipal Water District 5.C onsider Authorization of the Purchase and Sale Agreement for the Sterling Property with the City of San Bernardino 6.C onsider Adoption of Five-Year Work Plan 7.C onsider Approval of Fiscal Year 2018-19 Mid-Year Budget Revisions RE P O RT S 8.Board of Directors' Reports 9.General Manager/C EO Report 10.Legal Counsel Report 11.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s 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 1/09/2019 smg Draft pending approval EAST VALLEY WATER DISTRICT January 9, 2019 REGULAR BOARD MEETING MINUTES The Chairman of the Board called the meeting to order at 5:30 p.m. Director Goodrich 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. Legal Counsel announced that Pursuant to Government Code Section 54954.2(b)(2), that the Board requested that the following item be added to the agenda after unanimously determining that there was a need to take immediate action on the item, which came to the Districts attention after the agenda was posted: Consider Resolution 2019.01 – Non-CalPERS Employees Insurance Coverage under Public Employees’ Medical and Hospital Act. M/S/C (Coats-Goodrich) to place Resolution 2019.01 as an action item on the January 9, 2019 agenda. APPROVAL OF AGENDA M/S/C (Coats-Goodrich) that the January 9, 2019 agenda be approved as amended. 2 Minutes 1/09/2019 smg DIRECTORS’ FEES AND EXPENSES FOR DECEMBER 2018 M/S/C (Coats-Goodrich) that the Board approve the Directors’ fees and expenses for December 2018 as submitted. ADOPT 2019 IRS MILEAGE RATE M/S/C (Coats-Goodrich) that the Board adopt the standard mileage reimbursement rate of 58 cents per mile as established by the IRS for 2019. RESOLUTION 2019.01 NON-CALPERS EMPLOYEES INSURANCE COVERAGE UNDER PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL ACT The Human Resources/Safety Risk Manager provided information regarding the District’s need to take immediate action to adopt Resolution 2019.01; upon contacting CalPERS to inquire why a director was not showing health insurance coverage effective January 1st after enrolling during the open enrollment period, CalPERS informed staff that the District did not have a resolution on file to cover non-PERS employees under the Public Employees’ Medical and Hospital Care Act (PEMHCA). The Human Resources/Safety Risk Manager stated that per PERS, in order to cover non- CalPERS pension members such as directors, an agency’s Board of Directors must approve and submit a resolution to the CalPERS Board of Administration; an approval of this resolution will ensure compliance with the PEMHCA and will allow the District to add a non-member category for health enrollment onto its PERS system. M/S/C (Morales-Coats) that the Board adopt Resolution 2019.01 electing to be subject to the Public Employees’ Medical and Hospital Care Act at an equal amount for employees and annuitants - 700 non-PERS all employees. 2018 TOP INLAND EMPIRE WORKPLACES PROGRAM The Human Resources/Safety Risk Manager announced that East Valley Water District received an honorable mention in the Press-Enterprises’ Top Workplace in the Inland Empire small employer category. She provided a presentation detailing the criteria used by the Press-Enterprise in determining top workplaces; reviewed surveys taken by employees, average scores and how the District ranked compared to the local government benchmarks, employee comments, and areas for improvement. Information only. STERLING NATURAL RESOURCE CENTER PROJECT UPDATE The Director of Strategic Services provided a Sterling Natural Resource Center (SNRC) construction progress update; she stated that soil is being exported to the Redlands landfill and concrete is expected to be poured next week; and a time lapse camera was 3 Minutes 1/09/2019 smg installed on the treatment side today and is expected to be available for viewing on the District’s website early next week. Information only. BOARD OF DIRECTORS’ REPORTS Director Goodrich reported on the following: January 2 he attended the San Bernardino City Council meeting where they discussed the Settlement Agreement; and January 4 he toured the Sterling Natural Resource Center site with the General Manager/CEO. Director Morales reported on the following: January 8 he attended the San Bernardino Board of Water Commissioners meeting. Director Coats reported on the following: December 18 he attended the San Bernardino Valley Municipal Water District Board meeting; December 20 and January 8 he met with the General Manager/CEO where they discussed District business; and January 8 he attended San Bernardino Valley Municipal Water District Board meeting. Vice Chairman Smith reported on the following: January 2 he attended the San Bernardino City Council meeting; and January 3 he toured the Sterling Natural Resource Center site with the General Manager/CEO. Chairman Carrillo reported on the following: January 3 he met with the General Manager/CEO to review the agenda; January 4 toured the Sterling Natural Resource Center site with the General Manager; and January 8 he attended the Highland City Council meeting. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO wished everyone a happy new year and announced that District operations went smoothly during the closure. He reported that the Community Advisory Commission met yesterday where they discussed the District’s 5-year work plan; and January 10 he will be providing a historical briefing of the Sterling Natural Resource Center for newly elected Valley District Board members. The General Manager/CEO informed the Board of upcoming meetings and events: • January 17 @ 9:00 a.m. – CHEF Committee meeting • January 21 – District closed due to observance of Martin Luther King Jr. holiday • January 28 @ 5:30 p.m. – Special Board meeting Information only. 4 Minutes 1/09/2019 smg LEGAL COUNSEL REPORT No report at this time. BOARD OF DIRECTORS’ COMMENTS Director Coats stated that he is looking forward to the new year. Chairman Carrillo wished everyone a happy new year and stated that he is looking forward to the future. Information only. ADJOURN The meeting adjourned at 6:18 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: Jus tine Hendric ksen District C lerk B O AR D AGE N D A S TAF F R E P ORT Agenda Item #3.b . Meeting Date: F eb ruary 13, 2019 C ons ent Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: Approve Directo rs ' fees and expens es for January 2019 R E C O MME N D AT IO N: Approve the G o verning Board Memb ers ’ fees and exp ens es for January 2019. B AC KGR O UN D / AN ALYS IS : T he Board has ins truc ted s taff to lis t all d irecto r fees and expenses as a s ep arate agenda item to s how full fis c al trans p arency. O nly after Board review and approval will the c o mp ens ation and expens es be paid. 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 items has been reviewed by the Ad minis tratio n d ep artment. F IS C AL IMPAC T T he fis c al impac t as soc iated with this agenda item is $7,871.35 which is included in the current fiscal budget. ATTACH M E N TS: Description Type Directors' Expense Reports J anuary 2019 Backup Material B O AR D AGE N D A S TAF F R E P ORT Agenda Item #4. Meeting Date: F eb ruary 13, 2019 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: C ons id er R egional R ecycled Water P ip eline Design R eimburs ement Agreement with S an Bernardino Valley Municipal Water Dis tric t R E C O MME N D AT IO N: S taff rec o mmend s that the Bo ard of Directo rs autho rize the G eneral Manager to exec ute the R egional R ec yc led Water P ip eline Design R eimburs ement Agreement with the S an Bernardino Valley Munic ip al Water Distric t (Valley Dis tric t). B AC KGR O UN D / AN ALYS IS : T he S terling Natural R esourc e C enter (S NR C ) project will includ e an effluent dis c harge p ip eline to trans p o rt recycled water to the R edland s Bas ins and C ity C reek fo r gro und water rec harge. Exhibit A is a map that sho ws this pipeline. T he S NR C disc harge pipeline is an integral p art o f regio nal recycled water infras tructure that c an b e used to c o nvey rec ycled water fro m S NR C and recycled water p ro d uc ed b y o ther p ro jec ts like the C lean Water F ac tory, a p ro jec t propo s ed by the C ity o f S an Bernardino . T he regional nature o f the S NR C d is charge p ip eline c reated the o p p o rtunity to p artner with Valley Dis tric t s ince they have histo ric ally b een res p o ns ible for the c o ns tructio n o f regional infrastruc ture for c o nveying loc al and imp o rted water s upplies . O n January 15, 2019, Valley Dis tric t approved the s ub ject agreement (attached as Exhibit B) in which Valley Dis tric t s hall reimburs e Eas t Valley Water Dis tric t (E VW D) for all ac tual fully burd ened c os ts o f design o f the R egional R ecyc led Water P ipeline, inc luding geo tec hnical wo rk. T he c urrent es timated cos t for this d es ign wo rk is $453,125. O nce design is complete, a s eparate agreement will be d evelo p ed on reimb urs ement of c o nstruc tio n cos ts , inc luding an exis ting s egment o f 2,735 linear feet of 36-inch ductile iro n p ip eline previous ly c o ns tructed b y E V W D . Title to the R egional R ecycled Water P ip eline shall vest with Valley Dis tric t up o n c omp letion of c o ns truc tio n. In ad d ition, Valley Dis trict intends to c o ntrac t with EVW D to operate, maintain and repair the p ip eline. AG E N C Y G O ALS AN D OB J E C T IVE S : G oal and O b jectives I - Implement Effec tive S o lutio ns T hrough Visionary Leadership a) Identify O pportunities to O p timize Natural R esourc es R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Jeff No elte Direc tor o f Engineering and O p eratio ns a) Identify O pportunities to O p timize Natural R esourc es 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 c) P urs ue Alternative F unding S ources G o al and O bjec tives I V - P romo te P lanning, Maintenanc e and P res ervatio n o f Dis tric t R esources a) Develop P ro jec ts and P ro grams to Ens ure S afe and R eliable S ervices R E VIE W B Y O T HE R S : T his agenda item has been reviewed by the executive management team. F IS C AL IMPAC T T his R egional R ec yc led Water P ipeline Des ign R eimburs ement Agreement will fund the d es ign of the R egional R ec yc led Water P ipeline. ATTACH M E N TS: Description Type Exhibit A M ap Backup Material Exhibit B - Agreeme nt Backup Material RedlandsBasins City CreekSpreading po HIGHLAND REDLANDS SAN BERNARDINO I Legend Re-Purposed Existing Pipeline Future Recycled Water Pipeline SNRC Site Y:\2018\1800_SNRC\ExhibitA.mxd Exhibit A - Regional Recycled Water Pipeline Map 1:24,000 ·|}þ210 9TH ST 6TH ST SAN BERNARDINO AVE ALABAMA ST 5TH ST Execution Copy January 16, 2019 Regional Recycled Water Pipeline Reimbursement Agreement January 16, 2019 Page 1 of 5 1528022.6 REGIONAL RECYCLED WATER PIPELINE REIMBURSEMENT AGREEMENT This Reimbursement Agreement for the Regional Recycled Water Pipeline is entered into and effective as of ______________, 2019, by and between EAST VALLEY WATER DISTRICT, a County Water District, organized and operating pursuant to California Water Code Section 30000 et seq. (EVWD) and SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT, a Municipal Water District, organized and operating pursuant to California Water Code Section 71000 et seq. (VALLEY DISTRICT) (Collectively “Parties”). RECITALS WHEREAS, since 1969 VALLEY DISTRICT, together with a number of other public agencies including EVWD, have worked cooperatively to replenish the San Bernardino Basin Area (SBBA) and ensure that there are reliable sources of water for the residents of the San Bernardino Valley, among others; and WHEREAS, VALLEY DISTRICT and EVWD have collaborated on the Sterling Natural Resource Center project (SNRC) which will be designed and constructed by EVWD and which includes a 10 million gallons per day (mgd) effluent discharge pipeline, (Discharge Line) which will transport recycled water to the Redlands Basins and City Creek for discharge; and WHEREAS, VALLEY DISTRICT envisions that the SNRC Discharge Line is an integral part of regional recycled water infrastructure, including, but not limited to, combining recycled water flows from the SNRC and the Clean Water Factory, a project proposed by the city of San Bernardino, which would require expanding the Discharge Line and increasing its capacity to 15 mgd to accommodate the combined flows; and WHEREAS, VALLEY DISTRICT has historically been responsible for the construction of regional infrastructure for conveying local and imported water supplies; and WHEREAS, VALLEY DISTRICT wishes to reimburse EVWD for all expenses incurred in the design, including geotechnical work, of the Regional Recycled Water Pipeline; NOW THEREFORE, the Parties agree as follows: AGREEMENT 1.Design and Construction. EVWD will design the Regional Recycled Water Pipeline as a component of the SNRC project at an expanded capacity of 15 MGD to accommodate recycled water flows from the EXHIBIT "B" Execution Copy January 16, 2019 Regional Recycled Water Pipeline Reimbursement Agreement January 16, 2019 Page 2 of 5 1528022.6 Clean Water Factory pursuant to VALLEY DISTRICT’s request. A diagram depicting the Regional Recycled Water Pipeline is attached hereto as Exhibit A for reference. The current concept of the Regional Recycled Water Pipeline will be comprised of newly constructed pipeline tied into an existing 2,735 linear feet of 36-inch diameter ductile iron pipe originally constructed to serve EVWD Plant 150, but never used (Plant 150 Pipeline) and other associated appurtenances. 2. Reimbursement. VALLEY DISTRICT shall reimburse EVWD for all actual fully burdened costs of design of the Regional Recycled Water Pipeline, including geotechnical work. The current estimated cost of the design of the Regional Recycled Water Pipeline is $453,125. 3. Review and Approval. Upon completion of the design, VALLEY DISTRICT shall have the opportunity to review and approve the design plans of the Regional Recycled Water Pipeline, which approval shall not be unreasonably withheld. 4. Payments. VALLEY DISTRICT shall make progress payments, monthly in arrears, based on monthly invoices prepared by EVWD and supported by appropriate and sufficient documentation of cost. VALLEY DISTRICT shall have 10 days to review and pay the invoices. Upon completion of the design, EVWD shall submit a final invoice to VALLEY DISTRICT representing the total actual cost of design of the Regional Recycled Water Pipeline less payments previously made by VALLEY DISTRICT. VALLEY DISTRICT shall have 30 days within which to pay the final invoice. 5. Construction, Title & Operation. The Parties intend to enter into a separate agreement for construction of the Regional Recycled Water Pipeline and reimbursement of costs of construction and the existing but repurposed 2,735 linear feet of 36-inch ductile iron pipeline. Title to the Regional Recycled Water Pipeline shall vest with VALLEY DISTRICT upon completion of construction as evidenced through a Notice of Completion filed by EVWD. In addition, the Parties intend to enter into a separate agreement through which VALLEY DISTRICT may contract with EVWD to operate, maintain and repair the Regional Recycled Water Pipeline under direction from VALLEY DISTRICT. VALLEY DISTRICT shall have full and complete discretion to determine whether recycled water shall be discharged to City Creek or to the Redlands Basins except when Execution Copy January 16, 2019 Regional Recycled Water Pipeline Reimbursement Agreement January 16, 2019 Page 3 of 5 1528022.6 the point of discharge is defined under the terms and conditions of the SNRC Final Environmental Impact Report (SCH 2015101058_). VALLEY DISTRICT shall cause the Regional Recycled Water Pipeline to be operated by EVWD in full compliance with all applicable laws and regulations. 6 . Indemnification. (a) EVWD Indemnity. EVWD shall indemnify VALLEY DISTRICT against and agrees to hold VALLEY DISTRICT harmless of and from all liabilities, obligations, actions, suits, proceedings or claims, and all costs and expenses, including but not limited to, reasonable attorney’s fees (collectively, Claims and Costs), based upon or arising out of any negligent or intentional breach or failure of EVWD to observe or perform any obligation of EVWD as set forth in this Agreement. (b) VALLEY DISTRICT Indemnity. VALLEY DISTRICT shall indemnify EVWD against and agrees to hold VALLEY DISTRICT harmless of and from all liabilities, obligations, actions, suits, proceedings or claims, and all costs and expenses, including, but not limited to, reasonable attorney’s fees (collectively, Claims and Costs), based upon or arising out of any negligent or intentional breach or failure of VALLEY DISTRICT to observe or perform any of the obligations of the VALLEY DISTRICT as set forth in this Agreement. 7. Notices. All notices, requests, demands, or other communications required or permitted under this Agreement shall be in writing unless provided otherwise herein and shall be deemed to have been duly given and received if mailed to the parties to whom notices are to be given by first class mail, registered or certified, postage prepaid, addressed as follows: Notice to VALLEY DISTRICT: Douglas Headrick, General Manager San Bernardino Valley Municipal Water District 380 East Vanderbilt Way San Bernardino, CA 92408 David R. E. Aladjem Execution Copy January 16, 2019 Regional Recycled Water Pipeline Reimbursement Agreement January 16, 2019 Page 4 of 5 1528022.6 Downey Brand, LLP 621 Capital Mall Sacramento, CA 95814 Notice to EVWD: John Mura, General Manager/CEO East Valley Water District 31111 Greenspot Road Highland, CA 92346 Jean Cihigoyenetche JC Law Firm 5871 Pine Avenue, Suite 200 Chino Hills, CA 91709 8. Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and assigns. 9. Entire Agreement. This Agreement shall constitute the entire agreement between the parties hereto with respect to its subject matter and supersedes all prior Agreements, understandings, negotiations, representations, and discussions, whether verbal or written, of the parties, pertaining to that subject matter. 10. Severability. If any provision of this Agreement is determined to be illegal and unenforceable, all other provisions shall nevertheless be effective. 11. Governing Law. This Agreement and the legal relations between the parties hereto shall be governed by and be construed in accordance with the laws of the state of California with venue in the Superior Court for the County of San Bernardino, California. Execution Copy January 16, 2019 Regional Recycled Water Pipeline Reimbursement Agreement January 16, 2019 Page 5 of 5 1528022.6 12. Counterparts. This Agreement may be executed in several counterparts and all such executed counterparts shall constitute one document, binding on all the parties hereto, notwithstanding that all of the parties hereto are not signatories to the original or to the same counterpart. /// IN WITNESS WHEREOF, the Parties, EVWD and VALLEY DISTRICT, have executed this Agreement as of the date first set forth above. VALLEY DISTRICT: By: Printed Name: Douglas D. Headrick Its: General Manager EVWD: By: _______________________________ Printed Name: _______________________________ Its: _______________________________ RedlandsBasins City CreekSpreading po HIGHLAND REDLANDS SAN BERNARDINO I Legend Re-Purposed Existing Pipeline Future Recycled Water Pipeline SNRC Site Y:\2018\1800_SNRC\ExhibitA.mxd Exhibit A - Regional Recycled Water Pipeline Map 1:24,000 ·|}þ210 9TH ST 6TH ST SAN BERNARDINO AVE ALABAMA ST 5TH ST B O AR D AGE N D A S TAF F R E P ORT Agenda Item #5. Meeting Date: F eb ruary 13, 2019 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: C ons id er Autho rizatio n o f the P urchas e and S ale Agreement for the S terling P roperty with the C ity of S an Bernardino R E C O MME N D AT IO N: Autho rize the G eneral Manager/C E O to exec ute the P urchas e and S ale Agreement with the C ity of S an Bernardino and S an Bernard ino Municipal Water Dep artment fo r AP Ns 1192-231-01 and 1192-241-01 as outlined in the 2017 S ettlement Agreement. B AC KGR O UN D / AN ALYS IS : S etting out to cons truc t headquarters fac ility, the Dis tric t p urc has ed p roperty in the area o f S terling Avenue and 3rd S treet within the C ity o f S an Bernardino in 2004. F or a numb er o f reas o ns , inc luding the restrictio ns on the p ro p erty due to its proximity to the S an Bernardino International Airp o rt and the intended long-term facility us e, the Dis tric t ins tead c o ns tructed the Head q uarters F ac ility on G reenspot R o ad . T he S terling p ro p erty was als o cons id ered for the S terling Natural R es o urce C enter, b ut ultimately the 5th S treet property was s elected instead . T he parc els were determined to b e surp lus b y the G overning Board in 2012 as required prio r to the sale of Dis tric t p roperty. In 2017, the D istrict settled litigation with the City of S an B ernardino relating to the S terling N atural R esource C enter. Within that settlement agreement were various terms that fostered a new level of community cooperation and collaboration. O ne element of the agreement was the sale of the S terling property to the C ity of S an Bernardino for the balance of the E ast T runk S ewer F und at the close of escrow. T his agreement spells out the mechanics of the actual transaction. T he D istrict and the C ity of S an B ernardino continue to work together to complete the few remaining terms of the settlement agreement through open dialogue. AG E N C Y G O ALS AN D OB J E C T IVE S : G oal and O b jectives I - Implement Effec tive S o lutio ns T hrough Visionary Leadership c ) S trengthen R egio nal, S tate and National P artners hips R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Kelly Malloy Direc tor o f S trategic S ervic es R E VIE W B Y O T HE R S : T his agenda item has been reviewed by Legal C o uns el. F IS C AL IMPAC T T he fis c al impac t o f this item will res ult in revenue eq ualing the fund b alanc e of the Eas t Trunk S ewer F und from the p ro p erty s ale. B O AR D AGE N D A S TAF F R E P ORT Agenda Item #6. Meeting Date: F eb ruary 13, 2019 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 ive-Year Wo rk P lan R E C O MME N D AT IO N: S taff rec ommend s that the Bo ard cons id er ad o p tion of the F ive-Year Wo rk P lan. B AC KGR O UN D / AN ALYS IS : Eas t Valley Water Dis tric t has s et o ut to be a world c lass organization, with a foc us no t o nly o n providing s afe and reliable drinking water but of enhanc ing and preserving the q uality of life for our c ommunity. To achieve thes e high expec tatio ns , a series of p lanning and trac king measures must be implemented. T hro ugh a series of p lanning meas ures, the G o verning Board, staff, and the community have developed a Dis tric t vis ion that emp o wers the organization to take actio ns to b e innovative, effic ient, and effective. T he next s tep in the p lanning p roc es s is looking to the future in a s trategic manner. Many of the Dis trict’s c ritical effo rts req uire c areful p lanning, enviro nmental awareness, and clear prioritizatio n to allow fo r o n-going daily operatio ns while addres s ing s pecific long-term needs . C o nsistent with this c o mmitment, a Dis tric t-wide G oal fo r F is cal Year 2018-19 was ad o p ted to develo p a 5-year wo rk p lan fo r Board consideratio n. T hro ugh a s eries of meetings with the G o verning Bo ard , s taff, and the C o mmunity Ad vis ory C ommis s io n a d raft F ive-Year Wo rk P lan has been prepared for cons id eratio n with an emphas is on the elements needed to clearly lo o k to the future. T his effort is des igned to p ro vide general polic y direc tion and highlight priority p ro jects that allo ws fo r the p rio ritization and develo pment o f spec ific tas ks nec es s ary fo r implementation. If ad o p ted, the F ive-Year Wo rk P lan would b e incorporated into the annual Dis tric t-wide goals as s igned to the G eneral Manager/C EO , d evelopment of future bud gets , and res ourc e alloc ation. 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 I - Deliver P ublic S ervic e with P urpose W hile Emb rac ing C ontinuo us G rowth d ) Embrace an Environment of Active Learning and Knowled ge S haring R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Kelly Malloy Direc tor o f S trategic S ervic es R E VIE W B Y O T HE R S : T his item has been pres ented to the G o verning Board, Dis tric t s taff, and C o mmunity Advisory C ommis s io n fo r c o mments. F IS C AL IMPAC T T here is no fiscal impact associated with this agenda item. ATTACH M E N TS: Description Type Five Year Work P lan Cover M e mo 5-YEAR WORK PLAN EAST VALLEY WATER DISTRICT LEADERSHIP | PARTNERSHIP | STEWARDSHIP SUMMARY East Valley Water District has set out to be a world class organization, with a focus not only on providing safe and reliable drinking water but of enhancing and preserving the quality of life for our community. In order to achieve these high expectations, a series of planning and tracking measures must be implemented. Operating as a world class organization requires the internal team to continuously act in exemplary ways. Through a series of planning measures, the Governing Board, staff, and the community have developed a District vision that empowers the organization to take actions to be innovative, efficient, and effective. From this vision, a Strategic Plan has been developed to guide District operations. The next step in the planning process is looking to the future in a strategic manner. Many of the District’s critical efforts require careful planning, environmental awareness, and clear prioritization to allow for on-going daily operations while addressing specific long-term needs. Having intermediate and long-term plans in place allows for steps to be taken that support sustainable operations, however, it is a dynamic process which can require adjustment to external factors as necessary. ST R A T E G I C P L A N W O R K F L O W 78 Enhance and preserve the quality of life for our community through innovative leadership and world class public service. Optimize Infrastructure Systems Mutual Water Company Consolidations North Fork Acceptance of Effort Program Development Financials Surface Water Treatment Plant/ Uses for Water City Creek Arroyo Verde Tres Lagos System Optimization Short-term Obligations Long-term Infrastructure Financial Stability with Full Understanding of Operational Complexities Rates Cost of Service Analysis Impact Fees Pension Obligations Payment Schedule Grants Understand Debt Impacts and Cycles Acknowledge Unknowns Protect Organizational Investments Culture Branding Foster Commitment Foster Belief in Who We Are Staffing Analysis Succession Planning Caliber of Employees & their replacements What Makes us Different Continued Growth and Development Maximize the District's Position Facilitate Win-Win with New Development Engineering Staffing Policies/ Practices Updates Consistency Maintain a Nexus between the Master Plns and Development Agreements Infrastructure Master Plan (15, 20 year plans) Water Avoid Short-sided Decisions Wastewater Understand Constraints Understand Deficiencies Development District Properties Energy Efficiencies Repair/Rehab Septic-to-Sewer Have Flexibility Water Cost SNRC Security Network Facilities Actively Participate in Regional Projects Partnerships San Manuel Village Lakes Groundwater Council HCP- Santa Ana River HCP- Wash Plan Reduction of GW Dependence Capital Improvement Plan Less Sequencing, More Flexibility Ability to Take Advantage of Opportunities Have Others See the District as a Premier Agency CHEF Spark community loyalty and connection Develop organizational structures Facilities mapping / planning Financials Fundraising Outreach Long-term maintenance Regional Involvement ResourcesDistrict Vision Leadership, Partnership Stewardship Strategic Plan 5, 10, 20 -Year Plan Program/ Individual Goals Desired Results, Available/Needed Resources, Actions to be taken, Measures 5YearwithDistrictVision_2-6-19.mmap - 2/6/2019 - Mindjet B O AR D AGE N D A S TAF F R E P ORT Agenda Item #7. Meeting Date: F eb ruary 13, 2019 Dis c ussion Item To: G o verning Board Memb ers F rom: G eneral Manager/C EO Subject: C ons id er Approval o f F isc al Year 2018-19 Mid-Year Budget R evis io ns R E C O MME N D AT IO N: S taff recommends that the Board of Directo rs (Board) review and approve amendments to the F Y 2018-19 O p erating and C apital Bud gets . B AC KGR O UN D / AN ALYS IS : T he 2018-19 Mid -Year Budget R eview is presented fo r the Board of Directo rs ’ review and consideratio n. T his analys is and proc es s p ro vides the Bo ard the opportunity to review the status o f the operating and c ap ital b udgets as o f Dec ember 31st, and to c o ns ider rec o mmend ed adjus tments . In s ummary, s taff has b een mo nitoring program and c ap ital expend itures through Dec emb er, and exp enditures are trac king very clos e to the adopted b udget. T his s taff report req uests o ne mino r, and two s ignificant expend iture inc reases totaling $925,000, and als o p ro p o s es revenue adjus tments to c o ver the exp enditure req ues ts . As mentioned below, both of the s ignificant inc reas es in expend itures have previous ly been disc uss ed with the Bo ard, so p ro p o s ing to add them to the bud get at mid-year, alo ng with a fund ing s ourc e, is a nec es s ary fo rmality. T he requested bud get ad justments, and jus tificatio ns therefore, are desc rib ed belo w. Revenues Water s ales were $757,000 over p rojec tion thro ugh Decemb er, at $9,851,204. T his variance is due to a higher than expec ted spike in water us age fo r the month of Augus t, with usage in O c tober and Decemb er also coming in higher than projec ted . T he chart below p resents c usto mer water us age by Tier fo r the s ix months ended December 31st. Tier 1 us age was under p ro jec tion by just 0.2%, while Tiers 2 and 3 were o ver projec tio n b y 3.5% and 31.3%, respec tively. C usto mer o utd o or us e did fall month after mo nth between July and Dec emb er, b ut not as quic kly as temperatures and other cond itio ns rec o rd ed by the District’s weather s tatio n. As a res ult, cus tomers who were s lo w to ad just s p rinkler s ettings while o utd oor water b ud gets were shrinking, end ed up paying fo r a s ignificant p o rtion of outdoor water use at Tier 3 rates . Higher than projec ted water us age has c o ntinued into January res ulting in high water sales for that month as well. T herefo re, based o n the varianc e through December, and knowing that s ales have c o ntinued to exc eed p ro jectio n in the c urrent q uarter, s taff is recommend ing a $700,000 inc rease to b udgeted water s ales as a mid -year b udget ad justment. No adjus tment is p ro posed fo r Water Department meter c harge revenue. In the Was tewater Department, Was tewater C o llec tion revenue o f $2,361,627 is 2% ab o ve projec tion of $2,315,000 at mid -year. S taff is rec o mmending that the bud get for Was tewater C o llectio n revenues be increas ed b y $50,000 T he following two adjustments are propos ed for No n-O perating / O ther R evenue c atego ries: Inc reas e inves tment revenue by $60,000. Inves tment revenue is at 67% of projec tions through December with the apportionment rate p aid by the Lo cal Agenc y Inves tment F und (currently 2.4%) expected to c ontinue to ris e. Inc reas e Energy Inc entive R ebates ' revenue b y $115,000 to ac c ount for a c hec k received from Ed is on in S eptemb er for c o mmis s io ning of the Hydro Elec tric plant at P lant 134. Operating E xpenses T hro ugh December, o p erating expenses were at $14,116,215, whic h is 49% o f $28,675,000 in o p erating expens es bud geted for the year. W hile overall ac tual exp enditures are in line with b udget expec tations thro ugh mid -year, two line items on the attac hed rep ort sho w s ignific ant variatio n fro m b udget, and are exp lained below: Water sup p ly costs (P rogram 5000-Water P roduc tion) are at les s than 10% o f b udget at mid-year bec aus e 1) Valley Dis trict has not c o mpletely b illed EVW D for o ur $450,000 alloc atio n o f c os ts related to the G ro und water S us tainab ility C ounc il, 2) E VW D d id not p urc has e $500,000 o f s tate projec t water as b ud geted , and 3) estimated No rth F o rk asses s ments o f $122,000 will no t be invoic ed until May/June 2019 if No rth F ork Water C omp any ass es s ments are adopted this year. T here are no budget ad jus tments related to this item. C o ntrac t s ervic es in P ro gram 2300-C o ns ervatio n, is 228% over bud get d ue to unexpec ted timing of a p ayment to S an Bernard ino fo r s treet median land s c ap ing. T his $500,000 c o ntrib ution toward water effic ient land s caping was p art o f the s ettlement agreement with the C ity b ut had not been inc luded in the District’s 2018-19 adopted bud get. Acc o rd ingly, a $500,000 bud get inc reas e is req ues ted for C o ns ervatio n C ontrac t S ervices. O ne other ad jus tment req ues ted for O p erating Expenses is a $50,000 inc reas e to C ontract S ervices in P ro gram 7100-F leet Maintenanc e. O ne of two tec hnic ians in the garage retired at the b eginning of F Y 2018-19 and was not rep lac ed . Ins tead, vend ors were c o ntracted to come to the Dis tric t during off hours and p erfo rm fleetwide ro utine services such as o il c hanges . An estimated bud get fo r thes e s ervic es will fall sho rt by year end, s o a b udget increase is needed to comp lete the fis cal year. T he to tal proposed increase to the O perating Expens e budget is $550,000. Capital Expenditures S taff has evaluated the C apital Budget and the info rmation that has bec o me availab le since the 2018-19 b udget was ad o p ted , and is req uesting that the following ad jus tments b e app ro ved at mid-year: Plant 134 Membrane Replacement / S ite Improvements – T he 2018-19 C apital Budget includ ed $405,000 to rep lace a full train of filter membranes at the Dis tric t’s s urfac e water treatment P lant 134. T he ac tual c os t for the memb ranes was $250,000. Als o inc luded in the Budget was $150,000 to res earch and des ign various s ite imp ro vements , inc luding a muc h mo re robus t fence aro und the p erimeter of the plant to mitigate the threat of intrusion. After s o me p reliminary res earch, s taff is confid ent that a wrought iro n fence can be ins talled to rep lac e the exis ting c hain link fence that will c o s t b etween $250,000 and $300,000. S taff is req ues ting authorization to trans fer the remaining $155,000 fro m the memb rane rep lac ement pro ject, to combine with the $150,000 fo r s ite improvements so that the wrought iro n fence c an be bid and installed at P lant 134 d uring this fis c al year. Land Acquisition – Late in 2018, the hous e and land lo cated jus t east of the S terling Natural R es o urc e C enter p ro ject s ite was lis ted fo r sale at $374,000. T he Dis trict desired to acquire this property fo r pos s ib le future plant expans io n, so the Bo ard authorized the G eneral Manager / C EO to make an offer o n the property. An offer of $364,000 was ac cepted, and the Dis tric t entered esc ro w on the property in January 2019, as anno unced at the January 23, 2019 Board meeting. T he p urc has e o f the p ro p erty was not inc luded in the 2018-19 b udget; therefore, s taff is prop o s ing a b udget ad justment to C ap ital Exp enditures of $375,000 to b e paid out o f inc reas ed revenues. S ummary T he tab le b elow p resents a s ummary of actual revenue and expend itures year-to -d ate, the adopted bud get, and p ro p o s ed amend ments to the b ud get. P ropo s ed amendments to expend itures to tal $925,000 and will be funded b y current year revenues whic h are expec ted to exceed projec tions b y the s ame amount. A d etailed s ched ule of pro p o s ed adjus tments to C apital Exp end itures is attached. S taff is recommend ing that the Board ap prove $925,000 in adjustments to b o th revenue and expenditures in the 2018-19 O perating and C ap ital Expend iture b udgets as p res ented ab o ve and in the attac hments . 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 Ad minis tratio n and F inanc e departments. F IS C AL IMPAC T If approved, staff ’s rec o mmendation to inc reas e exp enditures in the 2018-19 o p erating and c ap ital bud gets by $925,000 will be o ffset by exp ec ted inc reas es in o p erating and no n-o p erating revenue. R ecommended b y: Jo hn Mura G eneral Manager/C EO R espec tfully sub mitted: Brian Tomp kins C hief F inancial O ffic er ATTACH M E N TS: Description Type P resentation P resentation Budget Reports Backup Material Capital Expenditures Backup Material FY 2018-19 MID-YEAR REVIEW February 13, 2019 OPERATING BUDGET REVIEW FISCAL YEAR 2018-19 WATER FUND SUMMARY 3 REVENUE BUDGET YTD ACTUAL YTD % PROJECTED Water Sales 15,100,000$ 9,851,204$ 65% 15,800,000$ Meter Charges 8,960,000 4,500,054 50% 8,960,000 Other Charges / Revenue 673,000 845,382 126% 848,000 Total Revenue 24,733,000$ 15,196,639$ 61% 25,608,000$ EXPENSES BUDGET YTD ACTUAL YTD % PROJECTED Labor & Benefits 7,370,900$ 3,834,627$ 52% 7,370,900$ Other Operating Expenses 9,136,100 4,436,302 49% 9,636,100 Capital Expenditures 4,106,000 813,413 20% 4,481,000 Debt Service 4,046,000 2,172,171 54% 4,046,000 Transfer To Reserves 74,000 - 0% 74,000 Total Expenses 24,733,000$ 11,256,513$ 46% 25,608,000$ Net -$ 3,940,126$ -$ WASTEWATER FUND SUMMARY 4 REVENUE BUDGET YTD ACTUAL YTD % PROJECTED Collection System Charges 4,630,000$ 2,361,627$ 51% 4,680,000$ Treatment Charges 8,233,000 4,423,954 54% 8,233,000 Other Charges / Revenue 252,000 48,278 19% 252,000 Total Revenue 13,115,000$ 6,833,858$ 52%13,165,000$ EXPENSES BUDGET YTD ACTUAL YTD % PROJECTED Labor & Benefits 2,167,100$ 974,230$ 45% 2,167,100$ Other Operating Expenses 10,000,900 4,871,055 49% 10,050,900 Capital Expenditures 15,605,000 3,094,886 20% 15,605,000 Debt Service 312,000 207,488 67% 312,000 Debt Proceeds (15,000,000) (2,500,000) 17% (15,000,000) Transfer To Reserves 30,000 - 0% 30,000 Total Expenses 13,115,000$ 6,647,659$ 51% 13,165,000$ Net -$ 186,199$ -$ PROGRAM SUMMARIES 6 GOVERNING BOARD GOAL % COMPLETE Provide Organizational Direction and Set Expectations Through Policy Decisions 70 Address Policy Related Decisions to Construct the Sterling Natural Resource Center (SNRC)50 Participate in Activities to Promote Community Engagement and Increase Board Qualifications 50 60%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $337,000 $84,051 $337,000 0.00% YTD 7 GENERAL ADMINISTRATION GOAL % COMPLETE Acquire Shares of NFWC not Currently Owned By District 40 Coordinate Establishment of Community Non- Profit (Heritage & Education Foundation)100 Implement District Wide Records Retention Program 80 75%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $1,258,000 $586,742 $1,258,000 0.00% YTD 8 HUMAN RESOURCES GOAL % COMPLETE Initiate Programs In Support of SNRC Workforce Needs 30 Promote Positive Organizational Culture that Maintains Supportive/Encouraging Environment 60 Promote Community Involvement and Provide Work Experience Opportunities 50 50%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $990,000 $553,154 $990,000 0.00% YTD 9 PUBLIC AFFAIRS GOAL % COMPLETE Implement Outreach Efforts that Promote Community Engagement in SNRC 50 Develop Communications Methods that Enhance the District’s Brand 50 Advance District’s Emergency Response Program to Effectively Respond in Emergency 35 45%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $1,142,000 $596,109 $1,142,000 0.00% YTD 10 CONSERVATION GOAL % COMPLETE Develop Community Engagement Programs to Increase Awareness of Water-Use Efficiency 50 Evaluate Rebate Program Success and Implement Program Enhancements 40 Engage in Legislative Process as it Relates to Changes in Conservation Regulations 40 45%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $593,000 $775,413 $1,093,000 84.32% YTD 11 FINANCE GOAL % COMPLETE Enhance Financial Reporting to Internal / External Stakeholders 75 Engage Stakeholders in Planning for Use of Public Funds 50 Link Fixed Asset Information in Tyler Software to Digitized Maps in GIS Program 40 55%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $1,131,000 $633,731 $1,131,000 0.00% YTD 12 INFORMATION TECHNOLOGY GOAL % COMPLETE Ensure Effective Technology with Proactive Planning and Maintenance Activities 33 Conduct Critical System Upgrades to Help Ensure Business Continuity 80 Enable Data Collection and Data Management Efforts for Other Departments 75 65%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $1,009,000 $440,454 $1,009,000 0.00% YTD 13 CUSTOMER SERVICE GOAL % COMPLETE Develop Strategies to Address Organizational Service Needs 43 Modify Processes to Encourage World Class Customer Service while Maintaining Financial Stability 83 Establish a Professional Development Plan that Supports the District’s Vision 50 60%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $1,786,000 $774,100 $1,786,000 0.00% YTD 14 METER SERVICES GOAL % COMPLETE Evaluate Opportunities and Impacts Resulting from the AMI Implementation 50 Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation 100 Develop a Proactive Meter Testing Program 100 85%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $283,000 $130,930 $283,000 0.00% YTD 15 ENGINEERING GOAL % COMPLETE Develop and Implement the District’s CIP to Address Rehabilitation and Maintenance Needs while also Preparing for New Development 50 Develop and Expand Workflow Procedures to Maximize Inter-Departmental Communication and Cooperation with Engineering 30 Support the Steps Necessary for the Advancement of the SNRC 50 45%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $1,521,000 $612,480 $1,521,000 0.00% YTD 16 WATER PRODUCTION GOAL % COMPLETE Develop a Water Supply Mix Plan to Maximize Surface Water 25 Implement Improvements to Enhance the SCADA System 50 Develop a Plan to Address Challenges and Opportunities Related to NFWC 50 45%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $4,378,000 $1,945,693 $4,378,000 0.00% YTD 17 WATER TREATMENT GOAL % COMPLETE Incorporate Operation and Maintenance of the Hydro-Generation Technology at Plant 134 50 Complete Plant 134 Membrane Replacement Phase Two of the 5-Year Replacement Plan 75 Support the Development of a Long-term Plant 134 Site Improvement Plan 50 60%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $848,000 $400,500 $848,000 0.00% YTD 18 WATER QUALITY GOAL % COMPLETE Conduct Expanded Sampling Programs to Ensure Compliance with All State & Federal Water Quality Requirements 60 Implement Mandatory Lead Sampling in Schools as Required by Assembly Bill 746 100 Implement In-House Environmental Controls and Compliance Program 30 65%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $434,000 $216,501 $434,000 0.00% YTD 19 WATER MAINTENANCE GOAL % COMPLETE GPS All Valves and Meter Boxes within the Service Area 45 Review Data Accuracy Compared to Actual Field Conditions 50 Facilitate Technology Trainings and Community Engagement 50 50%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $2,549,000 $1,337,950 $2,549,000 0.00% YTD 20 WASTEWATER MAINTENANCE GOAL % COMPLETE Complete Implementation of GraniteNet Software to Collect Data Regarding Wastewater Collection System Maintenance 60 Identify Operational Changes Needed to Accommodate Planned Development within the District 50 Incorporate GPS Data to Enhance Efficiency of Wastewater Maintenance Operations and Asset Management 50 55%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $8,996,000 $4,335,071 $8,996,000 0.00% YTD 21 FACILITIES MAINTENANCE GOAL % COMPLETE Develop a Long-Term Plant 134 Site Improvement Plan 40 Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with All District Facilities 70 Complete Systematic Upgrades and Rehabilitation of District Facilities 50 55%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $961,000 $421,302 $961,000 0.00% YTD 22 FLEET MAINTENANCE GOAL % COMPLETE Enhance Emergency Response Capabilities 100 Utilize the Most Effective Fleet Maintenance Methods 100 Participate in SNRC Design to Identify Future Impacts to the Fleet 25 75%BUDGET PROJECTED % FY 2018-19 FY 2018-19 CHANGE $459,000 $272,033 $509,000 10.89% YTD CAPITAL BUDGET CAPITAL OUTLAY 24 CAPITAL OUTLAY Vehicles Water Operating Revenue 150,000$ -$ 150,000$ Computer / Phone System Upgrades Water/Wastewater Operating Revenue 125,000 - 125,000 Planning Studies Water/Wastewater Operating Revenue 270,000 - 270,000 Acquisition of Water Company Shares Water Operating Revenue 250,000 - 250,000 Office Furniture & Equipment Water/Wastewater Operating Revenue 20,000 - 20,000 Water Tank Mixers Water Operating Revenue 161,000 - 161,000 Upgrade Server Room Fire Suppression Water/Wastewater Operating Revenue 40,000 - 40,000 Upgrade HVAC at Various Plants Water Operating Revenue 40,000 - 40,000 Sewer Lateral Snake / Locater Wastewater Operating Revenue 20,000 - 20,000 Drone Water/Wastewater Operating Revenue 30,000 - 30,000 TOTAL 1,106,000$ -$ 1,106,000$ PROJECT FUNDING SOURCE ADJUSTED BUDGET PROPOSED MID-YEAR ADJUSTMENT PROJECTED BUDGET CAPITAL BUDGET CAPITAL IMPROVEMENT PROJECTS 26 CIP – PROPOSED ADJUSTMENTS Land Acquisition Water Operating Revenue -$ 375,000$ 375,000$ Plant 134 - Site Improvements Reserves 150,000 155,000 305,000 Plant 134 - Membrane Replacements Reserves 405,000 (155,000) 250,000 Wastewater Main Rehabilitation - Modesto Drive Wastewater Operating Revenue 250,000 (115,000) 135,000 Wastewater Main Rehabilitation - 35th Street Wastewater Operating Revenue 180,000 (85,000) 95,000 Wastewater Main Rehabilitation - Ferndale Avenue Wastewater Operating Revenue - 125,000 125,000 Wastewater Main Rehabilitation - Orange Street Wastewater Operating Revenue -$ 75,000$ 75,000$ Total Proposed Mid-Year Adjustments 985,000$ 375,000$ 1,360,000$ PROJECT FUNDING SOURCE ADJUSTED BUDGET PROPOSED MID-YEAR ADJUSTMENT PROJECTED BUDGET 27 CIP – NO PROPOSED ADJUSTMENTS AMI Meter Replacement Program Water Operating Revenue 1,000,000$ -$ 1,000,000$ Canal Zone Storage Reservoir Developer Fees 500,000 - 500,000 Transmission Main - Plant 134 to Upper Zone Water Operating Revenue 1,100,000 - 1,100,000 Plant 134 - Process Improvements Water Operating Revenue 150,000 - 150,000 Plant 101 - Hydro Tank Replacement Water Operating Revenue 350,000 - 350,000 Water Mains - Dwight & Glasgow Water Operating Revenue 200,000 - 200,000 Facilities Relocations Water Operating Revenue 100,000 - 100,000 Facilities Rehabilitation Water Operating Revenue 75,000 - 75,000 Well & Booster Improvements / Rehabilitations Water Operating Revenue 50,000 - 50,000 Sterling Natural Resource Center (SNRC) Grants/Loans Other Fund 15,000,000 - 15,000,000 Subtotal Proposed Mid-Year Adjustments 985,000 375,000 18,525,000 Total 19,510,000$ 375,000$ 19,885,000$ PROJECT FUNDING SOURCE ADJUSTED BUDGET PROJECTED BUDGET PROPOSED MID-YEAR ADJUSTMENT STAFFING CHANGES 29 PROPOSED STAFFING CHANGES DEPARTMENT CURRENT POSITION PROPOSED POSITION Finance Customer Service Representative III Accounting Technician *Proposed Adjustments are Reflected in Department Summaries ACCOMPLISHMENTS 31 ACCOMPLISHMENTS •Created the “Community Heritage and Education Foundation Non-Profit Foundation •Selected Balfour Beatty and hosted a community groundbreaking for the SNRC •Implemented Community Volunteer Program •Completed K-12 Lead Sampling in all schools •Installed radios in all District vehicles for emergency preparedness •Completed the AMI Project Phase III •Presented the PERS Unfunded Liability Funding Plan •Adopted the Five-Year Work Plan 32 AWARDS •California Special District’s Association’s Transparency Award •Press Enterprise Top Workplace Honorable Mention •California Society of Municipal Finance Officers Excellence Award in Budgeting FY 2018-19 Budget FY 2018-19 Percent Budget YTD Activity Adjustment Projected Change Revenue 4100 - Water Sales 15,100,000.00 9,851,203.60 700,000.00 15,800,000.00 4200 - Meter Charges 8,960,000.00 4,500,053.72 - 8,960,000.00 4301 - Penalties 544,000.00 325,477.71 - 544,000.00 4400 - Wastewater Collection 4,630,000.00 2,361,626.62 50,000.00 4,680,000.00 4500 - Wastewater Treatment 8,233,000.00 4,423,953.90 - 8,233,000.00 4600 - Other Operating Charges 121,000.00 281,032.55 - 121,000.00 4700 - Investment Income 220,000.00 147,622.84 60,000.00 280,000.00 4703 - Energy Incentive Rebates - 115,825.00 115,000.00 115,000.00 4704 - Miscellaneous Revenue 40,000.00 23,701.39 - 40,000.00 37,848,000.00 22,030,497.33 925,000.00 38,773,000.00 2.44% Program: 1000 - Board of Directors ogra51 - Labor 105,000.00 36,400.00 - 105,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime - - - - ogra54 - Standby - - - - ogra56 - Benefits 65,000.00 37,613.43 - 65,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 1,000.00 117.85 - 1,000.00 ogra63 - Contract Services 111,000.00 - - 111,000.00 ogra64 - Utilities - - - - ogra65 - Professional Development 55,000.00 9,919.78 - 55,000.00 ogra67 - Other - - - - ogra Total 337,000.00 84,051.06 - 337,000.00 0.00% Program: 2000 - General Administration ogra51 - Labor 507,000.00 209,899.65 - 507,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 3,000.00 1,402.41 - 3,000.00 ogra54 - Standby - - - - ogra56 - Benefits 270,000.00 150,617.43 - 270,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 8,000.00 1,476.32 - 8,000.00 ogra63 - Contract Services 360,000.00 136,935.48 - 360,000.00 ogra64 - Utilities 3,000.00 1,511.07 - 3,000.00 ogra65 - Professional Development 107,000.00 84,899.84 - 107,000.00 ogra67 - Other - - - - ogra Total 1,258,000.00 586,742.20 - 1,258,000.00 0.00% Program: 2100 - Human Resources ogra51 - Labor 224,000.00 99,980.68 - 224,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 3,000.00 1,697.70 - 3,000.00 ogra54 - Standby - - - - ogra56 - Benefits 104,000.00 105,810.17 - 104,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 17,000.00 3,596.93 - 17,000.00 ogra63 - Contract Services 311,000.00 191,069.48 - 311,000.00 ogra64 - Utilities 1,000.00 273.09 - 1,000.00 ogra65 - Professional Development 40,000.00 20,952.72 - 40,000.00 DISTRICT WIDE FY 2018-19 MID-YEAR BUDGET REVIEW JULY 1, 2018 - DECEMBER 31, 2018 Page 1 of 6 FY 2018-19 Budget FY 2018-19 Percent Budget YTD Activity Adjustment Projected Change DISTRICT WIDE FY 2018-19 MID-YEAR BUDGET REVIEW JULY 1, 2018 - DECEMBER 31, 2018 ogra67 - Other 290,000.00 129,773.35 - 290,000.00 ogra Total 990,000.00 553,154.12 - 990,000.00 0.00% Program: 2200 - Public Affairs ogra51 - Labor 393,000.00 185,183.99 - 393,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 7,000.00 6,399.45 - 7,000.00 ogra54 - Standby - - - ogra56 - Benefits 132,000.00 91,453.84 - 132,000.00 ogra61 - Water Supply - - - ogra62 - Materials and Supplies 189,000.00 114,185.56 - 189,000.00 ogra63 - Contract Services 352,000.00 172,541.57 - 352,000.00 ogra64 - Utilities 28,000.00 14,362.64 - 28,000.00 ogra65 - Professional Development 41,000.00 11,982.19 41,000.00 ogra67 - Other - - - - ogra Total 1,142,000.00 596,109.24 - 1,142,000.00 0.00% Program: 2300 - Conservation ogra51 - Labor 98,000.00 57,649.03 - 98,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 3,000.00 2,053.26 - 3,000.00 ogra54 - Standby - - - - ogra56 - Benefits 27,000.00 16,795.75 - 27,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 228,000.00 5,633.02 - 228,000.00 ogra63 - Contract Services 210,000.00 690,616.95 500,000.00 710,000.00 ogra64 - Utilities 22,000.00 302.24 - 22,000.00 ogra65 - Professional Development 5,000.00 2,363.00 - 5,000.00 ogra67 - Other - - - - ogra Total 593,000.00 775,413.25 500,000.00 1,093,000.00 84.32% Program: 3000 - Finance ogra51 - Labor 650,000.00 295,627.59 - 650,000.00 ogra52 - Temporary Labor - 3,157.92 - - ogra53 - Overtime 5,000.00 8,700.21 - 5,000.00 ogra54 - Standby - - - ogra56 - Benefits 259,000.00 203,757.45 - 259,000.00 ogra61 - Water Supply - - - ogra62 - Materials and Supplies 11,000.00 1,889.46 - 11,000.00 ogra63 - Contract Services 172,000.00 114,729.18 - 172,000.00 ogra64 - Utilities 4,000.00 950.72 - 4,000.00 ogra65 - Professional Development 29,000.00 4,918.69 - 29,000.00 ogra67 - Other 1,000.00 - - 1,000.00 ogra Total 1,131,000.00 633,731.22 - 1,131,000.00 0.00% Program: 3200 - Information Technology ogra51 - Labor 334,000.00 144,249.43 - 334,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime - - - - ogra54 - Standby - - ogra56 - Benefits 109,000.00 54,178.52 - 109,000.00 ogra61 - Water Supply - - ogra62 - Materials and Supplies 35,000.00 18,947.81 - 35,000.00 ogra63 - Contract Services 501,000.00 220,836.67 - 501,000.00 Page 2 of 6 FY 2018-19 Budget FY 2018-19 Percent Budget YTD Activity Adjustment Projected Change DISTRICT WIDE FY 2018-19 MID-YEAR BUDGET REVIEW JULY 1, 2018 - DECEMBER 31, 2018 ogra64 - Utilities 5,000.00 2,350.09 - 5,000.00 ogra65 - Professional Development 25,000.00 (108.90) - 25,000.00 ogra Total 1,009,000.00 440,453.62 - 1,009,000.00 0.00% Program: 3300 - Customer Service ogra51 - Labor 476,000.00 189,579.95 - 476,000.00 ogra52 - Temporary Labor - 13,826.95 - - ogra53 - Overtime 5,000.00 2,533.22 - 5,000.00 ogra54 - Standby - - - ogra56 - Benefits 257,000.00 152,877.76 - 257,000.00 ogra61 - Water Supply - - - ogra62 - Materials and Supplies 8,000.00 1,346.48 - 8,000.00 ogra63 - Contract Services 865,000.00 377,317.85 - 865,000.00 ogra64 - Utilities 159,000.00 35,772.47 - 159,000.00 ogra65 - Professional Development 16,000.00 469.69 - 16,000.00 ogra67 - Other - 375.76 - - ogra Total 1,786,000.00 774,100.13 - 1,786,000.00 0.00% Program: 3400 - Meter Service ogra51 - Labor 178,000.00 81,543.29 - 178,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 10,000.00 1,881.96 - 10,000.00 ogra54 - Standby - - - - ogra56 - Benefits 80,000.00 43,272.90 - 80,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 5,000.00 382.34 - 5,000.00 ogra63 - Contract Services 8,000.00 3,405.10 - 8,000.00 ogra64 - Utilities 2,000.00 443.96 - 2,000.00 ogra65 - Professional Development - - - - ogra67 - Other - - - - ogra Total 283,000.00 130,929.55 - 283,000.00 0.00% Program: 4000 - Engineering ogra51 - Labor 707,000.00 307,901.99 - 707,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 2,000.00 1,551.71 - 2,000.00 ogra54 - Standby - - - - ogra56 - Benefits 263,000.00 162,078.40 - 263,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 25,000.00 1,428.37 - 25,000.00 ogra63 - Contract Services 348,900.00 106,764.50 - 348,900.00 ogra64 - Utilities 138,100.00 25,528.05 - 138,100.00 ogra65 - Professional Development 37,000.00 7,227.39 - 37,000.00 ogra67 - Other - - - - ogra Total 1,521,000.00 612,480.41 - 1,521,000.00 0.00% Program: 5000 - Water Production ogra51 - Labor 649,000.00 313,285.00 - 649,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 61,000.00 11,525.09 - 61,000.00 ogra54 - Standby 15,000.00 7,398.00 - 15,000.00 ogra56 - Benefits 292,000.00 199,058.69 - 292,000.00 ogra61 - Water Supply 1,067,000.00 99,616.00 - 1,067,000.00 ogra62 - Materials and Supplies 284,000.00 107,118.74 - 284,000.00 Page 3 of 6 FY 2018-19 Budget FY 2018-19 Percent Budget YTD Activity Adjustment Projected Change DISTRICT WIDE FY 2018-19 MID-YEAR BUDGET REVIEW JULY 1, 2018 - DECEMBER 31, 2018 ogra63 - Contract Services 481,000.00 342,871.73 - 481,000.00 ogra64 - Utilities 1,514,000.00 862,989.51 - 1,514,000.00 ogra65 - Professional Development 15,000.00 1,830.39 - 15,000.00 ogra67 - Other - - - - ogra Total 4,378,000.00 1,945,693.15 - 4,378,000.00 0.00% Program: 5100 - Water Treatment ogra51 - Labor 214,000.00 108,724.31 - 214,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 25,000.00 16,546.13 - 25,000.00 ogra54 - Standby - - - - ogra56 - Benefits 95,000.00 61,415.36 - 95,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 165,000.00 93,144.05 - 165,000.00 ogra63 - Contract Services 149,000.00 42,530.75 - 149,000.00 ogra64 - Utilities 200,000.00 78,139.72 - 200,000.00 ogra65 - Professional Development - - - - ogra67 - Other - - - - ogra Total 848,000.00 400,500.32 - 848,000.00 0.00% Program: 5200 - Water Quality ogra51 - Labor 168,000.00 82,268.96 - 168,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 15,000.00 3,597.21 - 15,000.00 ogra54 - Standby - - - - ogra56 - Benefits 66,000.00 70,955.32 - 66,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 18,000.00 10,641.17 - 18,000.00 ogra63 - Contract Services 159,000.00 47,365.15 - 159,000.00 ogra64 - Utilities 2,000.00 1,555.04 - 2,000.00 ogra65 - Professional Development 6,000.00 118.13 - 6,000.00 ogra67 - Other - - - - ogra Total 434,000.00 216,500.98 - 434,000.00 0.00% Program: 6000 - Field Maintenance Administration ogra51 - Labor 177,000.00 84,200.24 - 177,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 20,000.00 919.72 - 20,000.00 ogra54 - Standby 20,000.00 10,918.01 - 20,000.00 ogra56 - Benefits 90,000.00 99,201.76 - 90,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 3,000.00 494.56 - 3,000.00 ogra63 - Contract Services 1,000.00 1,333.24 - 1,000.00 ogra64 - Utilities 21,000.00 8,239.04 - 21,000.00 ogra65 - Professional Development 13,000.00 2,731.86 - 13,000.00 ogra67 - Other - - - - ogra Total 345,000.00 208,038.43 - 345,000.00 0.00% Program: 6100 - Water Maintenance ogra51 - Labor 925,000.00 392,651.15 (125,000.00) 800,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 130,000.00 116,541.56 125,000.00 255,000.00 ogra54 - Standby - - - - ogra56 - Benefits 454,000.00 204,502.79 - 454,000.00 Page 4 of 6 FY 2018-19 Budget FY 2018-19 Percent Budget YTD Activity Adjustment Projected Change DISTRICT WIDE FY 2018-19 MID-YEAR BUDGET REVIEW JULY 1, 2018 - DECEMBER 31, 2018 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 241,000.00 243,311.40 - 241,000.00 ogra63 - Contract Services 454,000.00 166,829.81 - 454,000.00 ogra64 - Utilities - 6,075.00 - - ogra65 - Professional Development - - - - ogra67 - Other - - - - ogra Total 2,204,000.00 1,129,911.71 - 2,204,000.00 0.00% Program: 6200 - Wastewater Maintenance ogra51 - Labor 290,000.00 99,772.69 - 290,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 45,000.00 3,110.96 - 45,000.00 ogra54 - Standby - - - - ogra56 - Benefits 146,000.00 66,221.63 - 146,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 36,000.00 20,119.98 - 36,000.00 ogra63 - Contract Services 8,479,000.00 4,145,845.92 - 8,479,000.00 ogra64 - Utilities - - - - ogra65 - Professional Development - - - - ogra67 - Other - - - - ogra Total 8,996,000.00 4,335,071.18 - 8,996,000.00 0.00% Program: 7000 - Facilities Maintenance ogra51 - Labor 147,000.00 61,444.95 - 147,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 15,000.00 9,332.21 - 15,000.00 ogra54 - Standby - - - - ogra56 - Benefits 79,000.00 42,631.07 - 79,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 46,000.00 33,615.41 - 46,000.00 ogra63 - Contract Services 459,000.00 210,351.24 - 459,000.00 ogra64 - Utilities 214,000.00 63,926.68 - 214,000.00 ogra65 - Professional Development 1,000.00 - - 1,000.00 ogra67 - Other - - - - ogra Total 961,000.00 421,301.56 - 961,000.00 0.00% Program: 7100 - Fleet Maintenance ogra51 - Labor 81,000.00 42,446.61 - 81,000.00 ogra52 - Temporary Labor - - - - ogra53 - Overtime 3,000.00 478.89 - 3,000.00 ogra54 - Standby - - - - ogra56 - Benefits 40,000.00 30,033.02 - 40,000.00 ogra61 - Water Supply - - - - ogra62 - Materials and Supplies 45,500.00 42,732.59 - 45,500.00 ogra63 - Contract Services 170,000.00 109,669.25 50,000.00 220,000.00 ogra64 - Utilities 113,500.00 46,672.62 - 113,500.00 ogra65 - Professional Development 6,000.00 - - 6,000.00 ogra67 - Other - - - - ogra Total 459,000.00 272,032.98 50,000.00 509,000.00 10.89% ograTotal Operating Expenses 28,675,000.00 14,116,215.11 550,000.00 29,225,000.00 Other Expenses 71 - Debt Service 4,358,000.00 2,379,658.41 - 4,358,000.00 ogra81 - Capital Improvement 18,605,000.00 3,809,236.03 375,000.00 18,980,000.00 ogra82 - Capital Outlay 1,106,000.00 99,062.57 - 1,106,000.00 Page 5 of 6 FY 2018-19 Budget FY 2018-19 Percent Budget YTD Activity Adjustment Projected Change DISTRICT WIDE FY 2018-19 MID-YEAR BUDGET REVIEW JULY 1, 2018 - DECEMBER 31, 2018 ogra83 - Debt Proceeds (15,000,000.00) (2,500,000.00) - (15,000,000.00) ogra88 - Transfer to Reserves 104,000.00 - - 104,000.00 ogra Total 9,173,000.00 3,787,957.01 375,000.00 9,548,000.00 4.09% Net - 4,126,325.21 - - Page 6 of 6 WATER WASTEWATER TOTAL WATER WASTEWATER OPERATING OPERATING GRANTS/LOANS REPLACEMENT DEVELOPER ADOPTED TOTAL OPERATING OPERATING GRANTS/LOANS DEVELOPER ADJ PROJECT PROJECT REVENUE REVENUE OTHER FUND RESERVES FEES BUDGET BUDGET REVENUE REVENUE OTHER FUND RESERVES FEES TOTAL CAPITAL OUTLAY NF Water Company Shares 250,000$ -$ -$ -$ -$ 250,000$ 250,000$ -$ -$ -$ -$ -$ 250,000$ Multi Year Rate Study 60,000 60,000 - - - 120,000 120,000 - - - - - 120,000 Phone System Upgrade 49,000 21,000 - - - 70,000 70,000 - - - - - 70,000 Workstation Replacements 17,000 8,000 - - - 25,000 25,000 - - - - - 25,000 Virtualization Backup Software 14,000 6,000 - - - 20,000 20,000 - - - - - 20,000 WiFi Changeout 7,000 3,000 - - - 10,000 10,000 10,000 Tank Mixers / Chlorine Analyzers 161,000 - - - - 161,000 161,000 - - - - - 161,000 Engineering File / Map Storage 14,000 6,000 - - - 20,000 20,000 - - - - - 20,000 SCADA Master Plan 120,000 30,000 - - - 150,000 150,000 - - - - - 150,000 HVAC Upgrades - various plants 40,000 - - - - 40,000 40,000 40,000 Sewer Lateral Locater / CCTV Server - 20,000 - - - 20,000 20,000 - - - - - 20,000 Drone 21,000 9,000 - - - 30,000 30,000 30,000 Fire Suppression - Data Center 28,000 12,000 - - - 40,000 40,000 - - - - - 40,000 Trucks (4)150,000 - - - - 150,000 150,000 - - - - - 150,000 TOTAL CAPITAL OUTLAY 931,000 175,000 - - - 1,106,000 1,106,000 - - - - - 1,106,000 CAPITAL IMPROVEMENT PROGRAM GENERAL CIP AMI Meter Retrofit Program 1,000,000 - - - - 1,000,000 1,000,000 - - - - - 1,000,000 Land Acquisition - - - - - - - 375,000 - - - - 375,000 General Subtotal 1,000,000 - - - - 1,000,000 1,000,000 375,000 - - - - 1,375,000 WATER CIP Canal Zone Storage Reservoir - - - - 500,000 500,000 500,000 - - - - - 500,000 Transmission Main - Plant 134 to Upper Zone 1,100,000 - - - - 1,100,000 1,100,000 - - - - - 1,100,000 Plant 134 - Process Improvements 150,000 - - - - 150,000 150,000 - - - - - 150,000 Plant 134 - Site Improvements 150,000 - - - - 150,000 150,000 - - - 155,000 - 305,000 Plant 134 - Membrane Replacements - - - 405,000 - 405,000 405,000 - - - (155,000) - 250,000 Plant 101 - Hydro Tank Replacement 350,000 - - - - 350,000 350,000 - - - - - 350,000 Water Mains - Dwight & Glasgow 200,000 - - - - 200,000 200,000 - - 200,000 Facilities Relocations 100,000 - - - - 100,000 100,000 - - - - - 100,000 Facilities Rehabilitation 75,000 - - - - 75,000 75,000 - - - - - 75,000 Well & Booster Improvements 50,000 - - - - 50,000 50,000 - - - - - 50,000 Water Subtotal 2,175,000 - - 405,000 500,000 3,080,000 3,080,000 - - - - - 3,080,000 WASTEWATER CIP Wastewater Main Rehabilitation - Modesto Drive - 250,000 - - - 250,000 250,000 - (115,000) - - - 135,000 Wastewater Main Rehabilitation - 35th Street - 180,000 - - - 180,000 180,000 - (85,000) - - - 95,000 Wastewater Main Rehabilitation - Ferndale Avenue - - - - - - - - 125,000 - - - 125,000 Wastewater Main Replacement - Orange Street - - - - - - - - 75,000 - - - 75,000 - - - - - - - - - - - - - Sterling Natural Resource Center (SNRC) - - 15,000,000 - - 15,000,000 15,000,000 - - - - - 15,000,000 Wastewater Subtotal - 430,000 15,000,000 - - 15,430,000 15,430,000 - - - - - 15,430,000 TOTAL CAPITAL IMPROVEMENT PROGRAM 3,175,000$ 430,000$ 15,000,000$ 405,000$ 500,000 19,510,000$ 19,510,000$ 375,000$ -$ -$ -$ -$ 19,885,000$ EAST VALLEY WATER DISTRICT CAPITAL EXPENSES FY 2018-19 PROPOSED ADJUSTMENT